Kanematsu : Consolidated Financial Results for the Six Months Ended September 30, 2025 (Under IFRS) TSE

October 31, 2025

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: Yes

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

1. Consolidated financial results for the Six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes. )

      	Revenue		Operating profit		Profit before tax		Profit
      Six months ended September 30, 2025	Millions of yen 513,495	% (1.0)	Millions of yen 25,189	% (0.9)	Millions of yen 24,279	% 4.3	Millions of yen 16,629	% 7.8
      September 30, 2024	518,573	9.4	25,419	13.4	23,271	14.2	15,426	14.6

      	Profit attributable to owners of the parent	Total comprehensive income	Basic earning per share	Diluted earning per share
      Six months ended September 30, 2025	Millions of yen % 16,137 6.6	Millions of yen % 21,117 71.4	Yen 194.10	Yen 193.30
      September 30, 2024	15,135 22.7	12,319 (49.4)	181.11	180.39

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

   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	%
   September 30, 2025	671,516	204,359	190,239	28.3
   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)			-	57.50	115.00

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

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

(Percentages indicate changes from the previous year. )

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

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 September 30, 2025	84,500,202 shares
      As of March 31, 2025	84,500,202 shares

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

      As of September 30, 2025	1,294,382 shares
      As of March 31, 2025	1,391,064 shares

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

• Quarterly consolidated financial summaries are not subject to quarterly review by a certified public accountant or an audit corporation

• 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 Six months Ended September 30, 2025" on page 3 of accompanying materials for further information on results forecasts.

1. Qualitative Information on Consolidated Results for the Six months Ended September 30, 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

(Notes on the going concern assumption) 11

(Segment information) 11

1. Details of consolidated results

   During the six months under review (from April 1, 2025 to September 30, 2025), although a moderate recovery trend was maintained, the outlook for the global economy remained uncertain primarily due to trade frictions, growing geopolitical risks, and the uncertainty over a shift in monetary policy.

   In the U.S., personal consumption remained robust amid remaining upward pressure on prices stemming from expansion of the tariff policy. However, the economy showed a decelerating trend as a result of a cautious stance on some business investments.

   In Europe, while personal consumption was firm, sluggish growth in exports and the increasingly unstable political situation weighed on the economy.

   In China, amid prolonged adjustments in the real estate market, despite policy-backed support, the economic recovery lacked strength partly due to a slowdown in foreign demand.

   The Japanese economy saw a pickup in personal consumption against the backdrop of the spread of wage increases and an improvement in the employment environment. However, the momentum of recovery slowed down slightly as a result of factors constraining corporate activities, such as rises in costs arising from the depreciation of the yen and increasing energy prices, and the impact relating to the U.S. tariff policy.

   The Steel, Materials & Plant segment recorded lower revenue due to sluggish performance in Steel and Energy, Chemicals & Plant businesses. On the other hand, strong performance in the Mobile and ICT Solution segments led to an increase in profit.

   As a result, consolidated revenue decreased by ¥5,078 million (1.0%) year on year, to ¥513,495 million. Consolidated gross profit also increased by ¥6,032 million (7.9%) from a year earlier, to ¥82,349 million. Consolidated operating profit decreased by ¥230 million (0.9%) from a year earlier, to ¥25,189 million, due to an increase in selling, general and administrative expenses and other expenses related to foreign exchange gains and losses, despite an increase in gross profit. Profit before tax increased by ¥1,008 million (4.3%) year on year, to ¥24,279 million. Profit attributable to owners of the parent increased by ¥1,002 million (6.6%) year on year, to ¥16,137 million.

   Results for each business segment are described below.

   1. ICT Solution

      Revenue increased by ¥7,125 million year on year, to ¥52,651 million, due to the strong performance of storage and servers for the manufacturing industry, robust demand for networks for the distribution industry, as well as steady growth in demand for services and security. Operating profit increased by ¥720 million, to ¥7,720 million, and profit attributable to owners of the parent increased by ¥397 million, to ¥5,106 million.

   2. Electronics & Devices

      Revenue increased by ¥9,687 million year on year, to ¥135,813 million, due to the strong sales in the mobile business and steady performance in the electronic devices and electronic materials business. Operating profit increased by ¥1,899 million, to ¥8,029 million, mainly driven by growth in the mobile business. Profit attributable to owners of the parent increased by ¥1,334 million, to ¥5,373 million.

   3. Foods, Meat & Grain

      Revenue increased by ¥2,675 million year on year, to ¥181,739 million, due to the steady performance in the food and grain businesses. On the other hand, Operating profit decreased by ¥1,382 million, to ¥3,878 million, primarily due to the the impact of sluggish market conditions in businesses such as the meat products business. Profit attributable to owners of the parent decreased by ¥121 million, to ¥2,280 million, due to the impact of sluggish market conditions in businesses such as livestock.

   4. Steel, Materials & Plant

      In addition to the sale of a domestic steel subsidiary, revenue decreased by ¥21,001 million year on year, to ¥81,438 million, due to struggling sales in the energy, steel, and steel tubing businesses, as well as a reactionary decrease in the plant business, which performed strongly last year. Operating profit decreased by ¥804 million, to ¥3,069 million. Profit attributable to owners of the parent decreased by ¥178 million, to ¥1,970 million.

   5. Motor Vehicles & Aerospace

      Revenue decreased by ¥3,436 million year on year, to ¥60,902 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 ¥444 million, to ¥2,741 million. Profit attributable to owners of the parent decreased by ¥380 million, to ¥1,615 million.

   6. Other

      Revenue decreased by ¥128 million year on year, to ¥950 million, while the operating loss increased by ¥197 million, to

      ¥269 million, and the loss attributable to owners of the parent increased by ¥131 million, to ¥158 million.

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

      Total assets at the end of September 30, 2025, decreased by ¥17,821 million from the end of the previous fiscal year, to

      ¥671,516 million.

      Interest-bearing debt decreased by ¥10,546 million from the end of the previous fiscal year, to ¥168,355 million. Net interest-bearing debt after deducting cash and deposits decreased by ¥7,972 million from the end of the previous fiscal year, to ¥112,364 million. Interest-bearing debt does not include lease liabilities.

      In terms of equity, equity attributable to owners of the parent increased by ¥16,297 million from the end of the previous fiscal year, to ¥190,239 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 28.3%. The net debt-to-equity ratio was 0.59 times.

   2. Cash flows

      Cash and cash equivalents at the end of September 30, 2025, decreased by ¥2,979 million from the end of the previous fiscal year, to ¥53,800 million.

      The state of cash flows and factors for each category for the Six months ended September 30, 2025, were as follows: (Cash flows from operating activities)

      Net cash provided by operating activities for the Six months ended September 30, 2025, was ¥23,299 million (¥37,176

      million in the same period of the previous fiscal year), mainly reflecting the accumulation of operating revenue and a decline in working capital.

      (Cash flows from investing activities)

      Net cash used in investing activities for the Six months ended September 30, 2025, was ¥5,934 million (¥6,472 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 Six months ended September 30, 2025 was ¥21,945 million (¥31,070 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.