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

August 1, 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: None

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

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

      	Revenue		Operating profit		Profit before tax		Profit
      Three months ended June 30, 2025	Millions of yen 251,116	% 0.0	Millions of yen 10,640	% (9.6)	Millions of yen 10,645	% (6.9)	Millions of yen 7,223	% (5.2)
      June 30, 2024	251,011	11.8	11,770	23.0	11,435	28.9	7,621	26.5

      	Profit attributable to owners of the parent	Total comprehensive income	Basic earning per share	Diluted earning per share
      Three months ended	Millions of yen %	Millions of yen %	Yen	Yen
      June 30, 2025	6,984 (6.4)	8,457 (35.3)	84.04	83.67
      June 30, 2024	7,460 37.1	13,064 (2.9)	89.28	88.92

      (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	%
   June 30, 2025	640,277	191,802	178,178	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	Yen -	Yen 52.50	Yen 105.00
   Fiscal year ending March 31, 2026 (Forecast)		57.50	-	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. )

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 June 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 June 30, 2025	1,391,094 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)

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

1. Qualitative Information on Consolidated Results for the Three months Ended June 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 first three months under review (from April 1, 2025 to June 30, 2025), the outlook for the global economy remained uncertain. This was primarily attributable to the uncertainty over U.S. tariff policy, prolonged economic stagnation in China, and growing geopolitical risks stemming from the deteriorating situation in the Middle East.

   In the U.S., the inflation resulting from tariff hikes increased the risk of putting downward pressure on personal consumption and capital expenditures. This raised concerns about a potential economic downturn.

   In Europe, although personal consumption remained firm, the risks of downward pressure on the economy were on the rise, due to political situation in major countries and decline in exports to the U.S. resulting from planned U.S. tariff hikes.

   In China, while recent personal consumption demonstrated a moderate recovery due to policy effects, the economy remained sluggish due to the ongoing real estate slump and other factors. This raised concerns that a full economic recovery would take some time.

   The Japanese economy experienced a moderate recovery as personal consumption remained firm against the backdrop of an improved income environment and other factors. However, there were concerns that interest rate and the direct and indirect impacts of U.S. tariff hikes would weigh on the economic recovery .

   Revenue increased, primary by strong performance in the ICT solution business and the mobile business. On the other hand, profit declined primarily due to underperformance in the meat products business.

   As a result, consolidated revenue increased by ¥105 million (0.0%) year on year, to ¥251,116 million. Consolidated gross profit also increased by ¥3,585 million (10.0%) from a year earlier, to ¥39,296 million. Consolidated operating profit decreased by ¥1,130 million (9.6%) from a year earlier, to ¥10,640 million. Profit before tax decreased by ¥790 million (6.9%) year on year, to ¥10,645 million. Profit attributable to owners of the parent decreased by ¥476 million (6.4%) year on year, to ¥6,984 million.

   Results for each business segment are described below.

   1. ICT Solution

      Revenue increased by ¥3,973 million year on year, to ¥20,712 million, due to strong performance in projects for network and system construction for the manufacturing and distribution industries. Operating profit increased by ¥902 million, to ¥2,312 million, and profit attributable to owners of the parent increased by ¥569 million, to ¥1,517 million.

   2. Electronics & Devices

      Revenue increased by ¥4,683 million year on year, to ¥65,601 million, attributable to higher revenue in the mobile business and the semiconductor parts and manufacturing equipment business. Operating profit increased by ¥1,057 million, to ¥3,842 million, mainly driven by growth in the mobile business. Profit attributable to owners of the parent increased by ¥797 million, to ¥2,697 million.

   3. Foods, Meat & Grain

      Revenue increased by ¥6,977 million year on year, to ¥94,628 million, reflecting higher revenue in the grain, oilseeds & feedstuff business and the foods business. Operating profit decreased by ¥2,035 million, to ¥1,668 million, primarily due to the reduced profitability in the grain, oilseeds & feedstuff business and the meat products business. Profit attributable to owners of the parent decreased by ¥1,098 million, to ¥958 million.

   4. Steel, Materials & Plant

      Revenue decreased by ¥9,631 million year on year, to ¥40,156 million, due to a downturn in the steel and steel tubing business and the energy business. Operating profit decreased by ¥580 million, to ¥1,556 million, impacted by weaker performance in the plant business and the environment-related business. Profit attributable to owners of the parent decreased by ¥226 million, to ¥1,082 million.

   5. Motor Vehicles & Aerospace

      Revenue decreased by ¥5,869 million year on year, to ¥29,528 million, mainly due to a downturn in the aerospace business and the motor vehicles & parts business. Operating profit decreased by ¥367 million, to ¥1,365 million, impacted by weaker performance in the motor vehicles & parts business and the machine tools & industrial machinery business. Profit attributable to owners of the parent decreased by ¥469 million, to ¥895 million.

   6. Other

      Revenue decreased by ¥27 million year on year, to ¥489 million, while the operating loss increased by ¥87 million, to

      ¥115 million, and the profit attributable to owners of the parent increased by ¥69 million, to ¥103 million.

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

      Total assets at the end of June 30, 2025, decreased by ¥49,060 million from the end of the previous fiscal year, to

      ¥640,277 million.

      Interest-bearing debt decreased by ¥5,723 million from the end of the previous fiscal year, to ¥173,178 million. Net interest-bearing debt after deducting cash and deposits increased by ¥1,368 million from the end of the previous fiscal year, to ¥121,704 million. Interest-bearing debt does not include lease liabilities.

      In terms of equity, equity attributable to owners of the parent increased by ¥4,236 million from the end of the previous fiscal year, to ¥178,178 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 0.68 times.

   2. Cash flows

      Cash and cash equivalents at the end of June 30, 2025, decreased by ¥7,563 million from the end of the previous fiscal year, to ¥49,216 million.

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

      Net cash provided by operating activities for the three months ended June 30, 2025, was ¥7,433 million (¥8,228 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 three months ended June 30, 2025, was ¥1,937 million (¥2,555 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 three months ended June 30, 2025 was ¥14,266 million (¥6,553 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.