Kanematsu : Consolidated Financial Results for the Nine Months Ended December 31, 2025 (Under IFRS) TSE

February 5, 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 to commence dividend payments: -Preparation of supplementary material on financial results: Yes Holding of financial results briefing: None

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

1. Consolidated financial results for the Nine months ended December 31, 2025 (from April 1, 2025 to December 31, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes. )

      	Revenue		Operating profit		Profit before tax		Profit
      Nine months ended December 31, 2025	Millions of yen 787,664	% 0.8	Millions of yen 37,650	% 12.6	Millions of yen 36,170	% 22.1	Millions of yen 24,723	% 24.5
      December 31, 2024	781,744	7.7	33,437	0.9	29,630	6.3	19,864	10.6

      	Profit attributable to owners of the parent	Total comprehensive income	Basic earnings per share	Diluted earnings per share
      Nine months ended	Millions of yen %	Millions of yen %	Yen	Yen
      December 31, 2025	24,233 24.8	34,724 45.4	145.71	145.13
      December 31, 2024	19,414 17.3	23,882 (2.5)	116.15	115.69

      (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. The calculation of basic earnings per share and diluted earnings per share is done under 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 parent to total assets
   As of	Millions of yen	Millions of yen	Millions of yen	%
   December 31, 2025	712,978	213,126	198,307	27.8
   March 31, 2025	689,337	188,128	173,942	25.2

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   Fiscal year ended March 31, 2025 Fiscal year ending March 31, 2026	Yen - -	Yen 52.50 57.50	Yen - -	Yen 52.50	Yen 105.00
   Fiscal year ending March 31, 2026 (Forecast)				31.25	-

   (Note 1) Revisions to the forecast of cash dividends most recently announced: None

   (Note 2) The Company conducted a 2-for-1 stock split of its common shares on January 1, 2026. The year-end dividend per share for the fiscal year ending March 31, 2026 is stated considering the effect of such the stock split, and the total annual dividend expense as ¥-. If the stock split was not conducted, the year-end dividend for the fiscal year ending March 31, 2026 would be ¥62.50 yen, and the total annual dividend would be ¥120.00 yen.

3. Forecasts for consolidated results ending March 31, 2026 (April 1, 2025 - March 31, 2026)

(Percentages indicate changes from the previous year. )

(Note 1) Revisions to results forecasts published most recently: None

(Note 2) The Company conducted a 2-for-1 stock split of its common shares on January 1, 2026. The calculation of basic earnings per share is done under the assumption that the stock split occurred at the start of the previous fiscal 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 December 31, 2025	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 December 31, 2025	2,589,349 shares
      As of March 31, 2025	2,782,129 shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

(Note) The Company conducted a 2-for-1 stock split of its common shares on January 1, 2026. The calculation of the 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 is done under the assumption that the stock split occurred at the start of the previous fiscal year.

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary)

• Explanation about the proper use of results forecasts, and additional information.

The forward-looking statements, including results forecasts, included in this document are based on information that the Company has obtained and certain assumptions that the Company considers reasonable. The Company does not promise to achieve them.

Actual results might be significantly different from the forecasts in the document, depending on various factors. Refer to "(3) Information on the future outlook, including consolidated business performance forecasts" in "1. Qualitative Information on Consolidated Results for the Nine months Ended December 31, 2025" on page 3 of accompanying materials for further information on results forecasts.

1. Qualitative Information on Consolidated Results for the Nine months Ended December 31, 2025 2

   1. Details of consolidated results 2

   2. Details of financial position 3

   3. Information on the future outlook, including consolidated business performance forecasts 3

2. Condensed Consolidated Financial Statements and Major Notes 4

   1. Condensed consolidated statement of financial position 4

   2. Condensed consolidated statements of income / Condensed consolidated statements of comprehensive income 6

      Condensed consolidated statements of income 6

      Condensed consolidated statements of comprehensive income 7

   3. Condensed consolidated statement of changes in equity 8

   4. Condensed consolidated statements of cash flows 10

   5. Notes on condensed consolidated financial statements 11

(Basis of Preparation) 11

(Notes on the going concern assumption) 11

(Segment information) 11

1. Details of consolidated results

   During the nine months under review (from April 1, 2025 to December 31, 2025), although a moderate recovery trend was maintained, the outlook for the global economy remained uncertain primarily due to uncertainty surrounding U.S. trade policy, prolonged geopolitical risks, and monetary policy uncertainty 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, companies adopted a cautious stance on capital investment, 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.

   In China, amid prolonged adjustments in the real estate market, 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 an improvement in the employment environment. However, the economic recovery remained gradual, affected by interest rate hikes as well as rises in costs due to the depreciation of the yen and fluctuations in energy prices, and the impact of the slowdown in overseas economies and U.S. trade policy.

   Under these circumstances, the consolidated results of the Group for the nine months ended the third quarter were as follows.

   Revenue increased as strong transactions in the Mobile and ICT Solutions businesses offset weak performance in the Energy business, in addition to the sale of a domestic steel subsidiary. Profit attributable to owners of the parent also increased partly due to improvements in share of loss of investments accounted for using the equity method in the Steel & Steel Tubing business.

   As a result, consolidated revenue increased by ¥5,920 million (0.8%) year on year, to ¥787,664 million. Consolidated gross profit also increased by ¥10,823 million (9.6%) from a year earlier, to ¥123,696 million. Consolidated operating profit increased by ¥4,213 million (12.6%) from a year earlier, to ¥37,650 million, despite an increase in selling, general and administrative expenses, mainly due to an increase in gross profit. Profit before tax increased by ¥6,540 million (22.1%) year on year, to ¥36,170 million, partly due to an improvement in share of loss of investments accounted for using the equity method. Profit attributable to owners of the parent increased by ¥4,819 million (24.8%) year on year, to ¥24,233 million.

   Results for each business segment are described below.

   1. ICT Solution

      Revenue increased by ¥10,875 million year on year, to ¥76,219 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 ¥1,318 million, to ¥10,403 million, and profit attributable to owners of the parent increased by ¥928 million, to ¥6,938 million.

   2. Electronics & Devices

      Revenue increased by ¥19,277 million year on year, to ¥217,166 million, due to the strong performance of the mobile business and the electronic devices and electronic materials business. Operating profit increased by ¥2,322 million, to

      ¥12,358 million. Profit attributable to owners of the parent increased by ¥1,412 million, to ¥8,114 million.

   3. Foods, Meat & Grain

      Revenue increased by ¥2,913 million year on year, to ¥275,581 million, due to the strong performance in the food and grain businesses. Operating profit increased by ¥1,362 million, to ¥7,097 million. Profit attributable to owners of the parent increased by ¥1,845 million, to ¥4,162 million.

   4. Steel, Materials & Plant

      Revenue decreased by ¥26,062 million year on year, to ¥124,832 million, due to the sale of a domestic steel subsidiary, and weak performance in the energy businesses. Operating profit decreased by ¥210 million, to ¥4,598 million, due to a reactionary decrease in the plant business, which performed strongly last year. On the other hand, mainly due to an improvement in share of loss of investments accounted for using the equity method recorded in the previous fiscal year, profit attributable to owners of the parent increased by ¥1,296 million, to ¥3,060 million.

   5. Motor Vehicles & Aerospace

      Revenue decreased by ¥858 million year on year, to ¥92,457 million, mainly due to weak performance in the machine tools and industrial machinery business resulting from sluggish demand for capital investment. Operating profit decreased by ¥103 million, to ¥3,708 million. Profit attributable to owners of the parent decreased by ¥247 million, to ¥2,237 million.

   6. Other

      Revenue decreased by ¥225 million year on year, to ¥1,407 million, while the operating loss decreased by ¥291 million, to ¥414 million, and the loss attributable to owners of the parent decreased by ¥120 million, to ¥134 million.

2. Details of financial position
   1. Assets, liabilities and equity

      Total assets at the end of December 31, 2025, increased by ¥23,641 million from the end of the previous fiscal year, to

      ¥712,978 million.

      Interest-bearing debt decreased by ¥2,141 million from the end of the previous fiscal year, to ¥176,760 million. On the other hand, net interest-bearing debt after deducting cash and deposits increased by ¥2,178 million from the end of the previous fiscal year, to ¥122,514 million. Interest-bearing debt does not include lease liabilities.

      In terms of equity, equity attributable to owners of the parent increased by ¥24,365 million from the end of the previous fiscal year, to ¥198,307 million, mainly due to the accumulation of profit attributable to owners of the parent.

      As a result, the equity ratio attributable to owners of the parent was 27.8%. The net debt-to-equity ratio was 0.62 times.

   2. Cash flows

      Cash and cash equivalents at the end of December 31, 2025, decreased by ¥4,475 million from the end of the previous fiscal year, to ¥52,304 million.

      The state of cash flows and factors for each category for the nine months ended December 31, 2025, were as follows: (Cash flows from operating activities)

      Net cash provided by operating activities for the nine months ended December 31, 2025, was ¥23,395 million (¥27,304

      million in the same period of the previous fiscal year), mainly reflecting the accumulation of operating revenue.

      (Cash flows from investing activities)

      Net cash used in investing activities for the nine months ended December 31, 2025, was ¥8,604 million (¥4,355 million used in the same period of the previous fiscal year), mainly reflecting payments for the execution of business investments such as the acquisition of property, plant and equipment, as well as subsidiaries.

      (Cash flows from financing activities)

      Net cash used in financing activities for the nine months ended December 31, 2025 was ¥21,727 million (¥26,317 million used in the same period of the previous fiscal year), mainly due to repayments of borrowings and lease liabilities, as well as dividend payments.

3. Information on the future outlook, including consolidated business performance forecasts

We have not changed the forecasts for consolidated results that we announced on May 8, 2025.

* Note on forward-looking statements:

The forward-looking statements, including results forecasts, included in this material are based on information that the Company has obtained and certain assumptions that the Company considers reasonable. The Company does not promise to achieve them. Actual results may differ materially from forecasts due to a number of factors.