Kanematsu : Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (Under IFRS) TSE

May 8, 2026

Company name: Kanematsu Corporation Listing: Tokyo Stock Exchange

Securities code: 8020

URL: https://www.kanematsu.co.jp/en Representative: President, Yoshiya Miyabe

Inquiries: General Manager of Accounting Dept., Fumitoshi Tanaka Telephone: +81-03-6747-5000

Scheduled date of annual general meeting of shareholders: June 25, 2026 Scheduled date to commence dividend payments: June 11, 2026 Scheduled date to file annual securities report: June 22, 2026

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

   1. Consolidated operating results (Percentages indicate year-on-year changes. )

      	Revenue	Operating profit		Profit before tax		Profit
      Fiscal year ended	Millions of yen %	Millions of yen	%	Millions of yen	%	Millions of yen	%
      March 31, 2026	1,067,665 1.6	48,663	15.7	47,157	23.3	33,249	25.8
      March 31, 2025	1,050,936 6.6	42,051	(4.1)	38,233	2.7	26,438	7.5

      	Profit attributable to owners of the parent	Total comprehensive income
      Fiscal year ended	Millions of yen %	Millions of yen %
      March 31, 2026	32,523 18.4	45,707 102.1
      March 31, 2025	27,469 18.3	22,621 (44.8)

      	Basic earnings per share	Diluted earnings per share	Return on equity attributable to owners of the parent	Profit before tax to total assets
      Fiscal year ended	Yen	Yen	%	%
      March 31, 2026	195.52	194.77	17.0	6.6
      March 31, 2025	164.48	163.84	16.5	5.4

      Reference: Share of profit (loss) of investments accounted for using the equity method For the fiscal year ended March 31, 2026: ¥1,625 million

      For the fiscal year ended March 31, 2025: ¥86 million

      (Note 1) The basic earnings per share and the diluted earnings per share are calculated based on the profit attributable to owners of the parent.

      (Note 2) The Company conducted a 2-for-1 stock split of its common shares on January 1, 2026. Basic earnings per share and diluted earnings per share are calculated on the assumption that the stock split occurred at the start of the previous fiscal year.

   2. Consolidated financial position

      	Total assets	Total equity	Equity attributable to owners of the parent	Ratio of equity attributable to owners of the parent to total assets
      As of	Millions of yen	Millions of yen	Millions of yen	%
      March 31, 2026	733,009	223,474	208,391	28.4
      March 31, 2025	689,337	188,128	173,942	25.2

      	Equity attributable to owners of the parent per share
      As of	yen
      March 31, 2026	1,252.27
      March 31, 2025	1,046.47

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
   March 31, 2026	57,663	(11,929)	(46,900)	58,418
   March 31, 2025	58,329	1,363	(54,658)	56,779

2. Cash dividends

   	Annual dividends per share					Total cash dividends	Payout ratio (Consolidated)	Ratio of dividends to equity attributable to owners of the parent (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen - -	Yen	Yen - -	Yen	Yen	Millions of yen 8,844 10,613	%	%
   Fiscal year ended March 31, 2025		52.50		52.50	105.00		31.9	5.3
   Fiscal year ended March 31, 2026		57.50		34.25	-		32.2	5.5
   Fiscal year ending March 31, 2027 (Forecast)	-	35.00	-	35.00	70.00		33.3

   Note:

   The Company conducted a 2-for-1 stock split of its common shares on January 1, 2026. The interim dividend per share for the fiscal year ended March 31, 2026 is presented as the amount before reflecting the effect of the stock split, and the total annual dividends per share is presented as "-". After reflecting the stock split, the interim dividend per share for the fiscal year ended March 31, 2026 would be ¥28.75, and the annual dividends per share would be ¥63.00.

3. Forecasts for consolidated results for the fiscal year ending March 31, 2027 (April 1, 2026 - March 31, 2027)

(Percentages indicate changes from the previous year.)

1. Significant changes in the scope of consolidation during the period: None

2. Changes in accounting policies and changes in accounting estimates

   1. Changes in accounting policies required by IFRS: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

3. Number of issued shares (ordinary shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2026	169,000,404 shares
      As of March 31, 2025	169,000,404 shares

   2. Number of treasury shares at the end of the period

      As of March 31, 2026	2,589,637 shares
      As of March 31, 2025	2,782,129 shares

   3. Average number of shares outstanding during the period

(Note) The Company conducted a 2-for-1 stock split of its common shares on January 1, 2026. Total number of issued shares at the end of the period, the number of treasury shares at the end of the period, and the average number of shares outstanding during the period have been calculated on the assumption that the stock split occurred at the start of the previous fiscal year.

1. Non-consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)
   1. Non-consolidated operating results

      	Revenue	Operating profit	Ordinary profit	Profit
      Fiscal year ended	Millions of yen %	Millions of yen %	Millions of yen %	Millions of yen %
      March 31, 2026	399,929 (2.3)	432 206.6	19,120 24.1	19,208 (1.6)
      March 31, 2025	409,334 2.9	140 －	15,413 44.7	19,516 96.3

      	Basic earnings per share	Diluted earnings per share
      Fiscal year ended	Yen	Yen
      March 31, 2026	115.45	-
      March 31, 2025	116.82	-

   2. Non-consolidated financial position

Reference: Equity

As of March 31, 2026: ¥131,835 million As of March 31, 2025: ¥117,954 million

• This financial results report is not subject to audit by a certified public accountant or an audit corporation.

• Explanation of the proper use of results forecasts, and other special notes.

1. The forward-looking statements, including results forecasts, included in this document are based on information currently available to the Company and on certain assumptions deemed reasonable by the Company. Accordingly, the Company does not guarantee the achievement of these forecasts. Actual results may differ significantly due to various factors. For information regarding the results forecasts, please refer to "1. Overview of Operating Results, etc., (1) Overview of Operating Results for the Fiscal Year under Review, 2. Future Outlook" on page 3 of the attached materials.

2. The Company operates its businesses on a consolidated basis. Accordingly, the Company does not disclose forecasts for non-consolidated business results.

3. The Company plans to hold a results briefing for institutional investors and analysts on Monday, May 18, 2026. The briefing materials to be used at the briefing will be posted on the Company's website promptly after the briefing.

1. Overview of Operating Results, etc. 2

   1. Overview of Operating Results for the Fiscal Year Under Review 2

   2. Overview of Financial Position 4

   3. Basic Policy on Profit Distribution and Dividends for the Fiscal Year Under Review and the Next Fiscal Year 4

2. Basic Approach to the Selection of Accounting Standards 4

3. Condensed Consolidated Financial Statements and Major Notes 5

   1. Condensed Consolidated Statement of Financial Position 5

   2. Condensed Consolidated Statements of Income / Condensed Consolidated Statements of Comprehensive Income . 7 (Condensed Consolidated Statements of Income) 7

      (Condensed Consolidated Statements of Comprehensive Income) 8

   3. Condensed Consolidated Statement of Changes in Equity 9

   4. Condensed Consolidated Statements of Cash Flows 11

   5. Notes on Condensed Consolidated Financial Statements 12

(Notes on the Going Concern Assumption) 12

(Segment Information) 12

(Per Share Information) 15

(Significant Subsequent Events) 15

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During the fiscal year under review (from April 1, 2025 to March 31, 2026), although a moderate recovery trend was maintained, global economic conditions remained uncertain overall primarily due to uncertainty surrounding U.S. trade policy, prolonged geopolitical risks including heightened tensions in the Middle East, and uncertainty over the conduct of monetary policy across countries.

In the U.S., personal consumption remained firm amid continued upward pressure on prices stemming from expansion of the tariff policy. Meanwhile, against the backdrop of policy environment uncertainty and persistent high interest rates, companies adopted a cautious stance on capital and inventory investments, leading to a gradual economic slowdown.

In Europe, although personal consumption maintained a certain degree of firmness against the backdrop of an improvement in the employment environment, sluggish growth in foreign demand and instability in political situation within the region exerted downward pressure on the economy, resulting in a lack of strong momentum.

In China, amid prolonged adjustments in the real estate market, despite policy-backed support, the economy remained generally sluggish due to slowing external demand and continued caution among businesses and households.

The Japanese economy saw a pickup in personal consumption against the backdrop of sustained wage increases and an improvement in the employment environment. However, the economic recovery remained gradual, affected by rises in costs due to interest rate hikes, the depreciation of the yen and high energy prices as well as the impact of the slowdown in overseas economies and U.S. trade policy.

Under these circumstances, the business results of the Group for the fiscal year under review were as follows.

Revenue increased as strong transactions in the Mobile, ICT Solutions business, and Meat Products business offset weak performance in the Energy business and the sale of a domestic steel subsidiary. Profit also increased, reflecting improved earnings in the Electronic Devices and Electronic Materials business and the Steel Tubing business, which had recorded impairment losses on goodwill in the previous fiscal year.

As a result, revenue increased by ¥16,729 million (1.6%) year on year, to ¥1,067,665 million. Gross profit increased by

¥13,907 million (9.0%), year on year, to ¥168,914 million. Operating profit increased by ¥6,612 million (15.7%), year on year, to ¥48,663 million, as the increase in gross profit more than offset higher selling, general and administrative expenses. Profit before tax increased by ¥8,924 million (23.3%), year on year, to ¥47,157 million, mainly due to an improvement in the share of profit (loss) of investments accounted for using the equity method. Profit attributable to owners of the parent increased by ¥5,054 million (18.4%), year on year, to ¥32,523 million. Return on equity attributable to owners of the parent, or ROE, was 17.0%, and return on invested capital, or ROIC, was 9.1%.

*ROIC = Net profit for the year ÷ Invested capital, consisting of interest-bearing liabilities plus shareholders' equity Results by business segment are described below.

1. ICT Solution

   Revenue increased by ¥11,243 million year on year, to ¥110,771 million, due to the strong performance of storage and servers for the manufacturing industry, including the defense and semiconductor sectors, as well as robust demand for networks for the distribution industry and steady growth in demand for services and security. Operating profit increased by ¥495 million, to ¥15,174 million, and profit attributable to owners of the parent increased by ¥323 million, to ¥10,293 million.

2. Electronics & Devices

   Revenue increased by ¥35,522 million year on year, to ¥306,895 million, due to the strong performance of the Mobile business and the Electronic Devices and Electronic Materials business. Operating profit increased by ¥4,734 million, to

   ¥16,129 million, and profit attributable to owners of the parent increased by ¥3,885 million, to ¥10,916 million.

3. Foods, Meat & Grain

Revenue increased by ¥1,330 million year on year, to ¥358,866 million, due to the strong performance in the meat business. Operating profit increased by ¥1,002 million, to ¥8,844 million, and profit attributable to owners of the parent increased by ¥2,311 million, to ¥5,374 million.

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