Kanematsu Corporation TSE:8020

Kanematsu : Supplementary Material Second Quarter Results for FY2026 TSE

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Supplementary Material

Second Quarter Results for FY2026

Disclaimer:

The forward-looking statements, including results forecasts, provided in this document (and its appendix) are based on information obtained by Kanematsu Corporation (the Company) and certain reasonable assumptions made by the Company. The Company does not guarantee their achievement, and actual results may differ from forecasts due to various factors. This information is subject to change without prior notice, and users are advised to utilize this document alongside information acquired through other sources and exercise their own discretion. The Company bears no liability or responsibility for any loss or damage resulting from the use of this material Additionally, as the figures presented are rounded off to the nearest 1 billion yen, the total may not precisely match the sum of each item.

  • Net profit attributable to owners of the parent company reached a record high for the second quarter.

  • Progress toward our full-year net profit1) target of ¥30.0 billion stands at a steady 54%.

(Unit: JPY Bn)

FY2025 2Q

FY2026 2Q

YoY

Growth

Revenue

518.6

513.5

(5.1)

(1%)

Operating profit

25.4

25.2

(0.2)

(1%)

Net profit

15.1

16.1

1.0

+7%

Operating cash flows (adjusted)2)

21.9

15.5

(6.4)

CF from investing activities

(6.5)

(5.9)

0.5

End of Mar 2025

End of Sep 2025

YoY

Net D/E ratio3)

0.69x

0.59x

(0.10x)

Equity ratio4)

25.2%

28.3%

+3.1%

Earnings Results

Forecast

(Unit: JPY Bn)

FY2026

Annual

2Q

Progress

Revenue

1,100.0

47%

Operating profit

50.0

50%

Net profit1)

30.0

54%

Annual dividend per share 115 yen Dividend payout ratio 32.0%

  1. Net profit = Profit attributable to owners of the parent

  2. Operating cash flows (adjusted) ＝ Operating cash flows ± Change in working capital - Repayment of lease liabilities

  3. Net D/E Ratio ＝ Net interest-bearing debt ÷ total equity attributable to owners of the parent

  4. Equity ratio ＝ Shareholders' equity ÷ total assets

    Earnings Summary

    Earnings Results Progress

    (Unit: JPY Bn)

    FY2025 2Q

    FY2026

    (Unit: JPY Bn)

    FY2026

    Annual Forecast

    2Q

    Progress

    Revenue

    1,100.0

    47%

    Operating profit

    50.0

    50%

    Profit before tax

    46.0

    53%

    Profit attributable to owners of the parent

    30.0

    54%

    2Q YoY Growth

    Revenue 518.6

    513.5 (5.1)

    (1%)

    Gross profit

    76.3

    82.3

    +6.0

    +8%

    Selling, general and administrative expenses

    (56.1)

    (58.4)

    (2.3)

    -

    Other income (expenses)

    5.2

    1.2

    (4.0)

    (77%)

    While the ICT Solution segment and the Electronics & Devices segment saw an increase in revenue, the Steel, Materials & Plant segment and the Motor Vehicles & Aerospace

    segment recorded a decline in revenue, resulting in an overall decrease of ¥5.1 billion.

    While gross profit increased, selling, general and administrative expenses as well as other expenses related to foreign exchange gains and losses also rose, resulting in a nearly flat overall outcome.

    Due to a decrease in interest expenses and an improvement in share of profit (loss) of investments accounted for using the equity method in earnings of affiliated companies, profit increased by ¥1.0 billion.

    Achieved a record-high profit of ¥16.1 billion. See page 4 for more details.

    • Revenue

    • Operating profit

    • Profit before tax

    • Profit for the period attributable to owners of the parent

    Operating profit

    25.4

    25.2

    (0.2)

    (1%)

    Interest income

    (expenses)

    (2.5)

    (2.1)

    +0.3

    -

    Dividend income

    0.8

    0.8

    (0.1)

    (10%)

    Other finance income

    (costs)

    (0.3)

    (0.2)

    +0.0

    -

    Dividend payout ratio 32.0%

    Net Profit1) Forecast

    (Unit: JPY Bn)

    Profit for the period attributable to owners

    of the parent 15.1

    16.1 +1.0

    +7%

    Annual 30.0

    2Q Progress

    1~2Q

    16.1

3~4Q

13.9

54％

Finance income (costs) (1.9)

(1.6)

+0.3

-

Share of Profit (Loss) of Investments Accounted for

Using the Equity Method (0.3)

0.7

+1.0

-

Profit before tax 23.3

24.3 +1.0

+4%

Income tax expense (7.8)

(7.6)

+0.2

-

Profit for the period 15.4

16.6

+1.2

+8%

Profit and Loss

Segment Information

(Unit: JPY Bn) ICT Solution

FY2025 2Q

FY2026 2Q

52.7

YoY

+7.1

Growth

+16%

FY2026

Forecast

105.0

Progress

50%

Revenue

45.5

Operating Profit

7.0

7.7

+0.7

+10%

15.5

50%

Net Profit1)

4.7

5.1

+0.4

+8%

10.5

49%

Electronics & Devices

Revenue

126.1

135.8

+9.7

+8%

275.0

49%

Operating profit

6.1

8.0

+1.9

+31%

14.5

55%

Net profit

4.0

5.4

+1.3

+33%

9.5

57%

Foods, Meat & Grain

Revenue

179.1

181.7

+2.7

+2%

385.0

47%

Operating profit

5.3

3.9

(1.4)

(26%)

8.1

48%

Net profit

2.4

2.3

(0.1)

(5%)

3.5

65%

Steel, Materials & Plant

Revenue

102.4

81.4

(21.0)

(21%)

200.0

41%

Operating profit

3.9

3.1

(0.8)

(21%)

6.2

50%

Net profit

2.1

2.0

(0.2)

(8%)

3.5

56%

Motor Vehicles & Aerospace

Revenue

64.3

60.9

(3.4)

(5%)

130.0

47%

Operating profit

3.2

2.7

(0.4)

(14%)

5.8

47%

Net profit

2.0

1.6

(0.4)

(19%)

3.4

48%

Other (Including adjustment)

Revenue

1.1

1.0

(0.1)

-

5.0

-

Operating profit

(0.0)

(0.3)

(0.2)

-

(0.1)

-

Net profit

(0.2)

(0.2)

(0.0)

-

(0.4)

-

Total

Revenue

518.6

513.5

(5.1)

(1%)

1,100.0

47%

Operating profit

25.4

25.2

(0.2)

(1%)

50.0

50%

Net profit

15.1

16.1

+1.0

+7%

30.0

54%

(Unit: JPY Bn)

Revenue

+9.7

+2.7

+7.1

518.6

(21.0)

(3.4)

513.5

(0.1)

FY2025

ICT Solution

Electronics

Foods, Meat

Steel, Materials

Motor Vehicles

Other

FY2026

2Q

& Devices

& Grain

& Plant

& Aerospace

2Q

(Unit: JPY Bn)

+1.9

Operating profit

+0.7

25.4

(1.4)

(0.8)

(0.4)

25.2

(0.2)

FY2025 2Q

ICT Solution Electronics & Devices

Foods, Meat & Grain

Steel, Materials & Plant

Motor Vehicles & Aerospace

Other FY2026 2Q

Profit attributable to owners of the parent

  • ICT Solution ■ Electronics & Devices

  • Foods, Meat & Grain ■ Steel, Materials & Plant

  • Motor Vehicles & Aerospace ■ Other (Including adjustment)

(Unit: JPY Bn)

Primary factors contributing to the year-on-year changes ICT Solution Increased by ¥0.4 billion

  • Strong sales of storage and servers for the manufacturing industry, as well as robust demand for networks in

the distribution sector, together with increased needs for services and security, led to higher profits.

  • Mobile: In addition to the increase in sales volume resulting from expanded sales channels, the growth of the business for corporate clients also contributed to higher profits.

  • Semiconductor Parts & Equipment Business: Strong performance in semiconductor component transactions led to higher profits.

  • Electronic devices & Materials: Profit increased due to the effects of M&A and other factors.

Electronics & Devices Increased by ¥1.3 billion

5.1

(0.2)

4.7

＋0.4

+1.3

(0.1)

(0.2)

(0.4)

5.4

4.0

2.4

2.3

2.1

2.0

2.0

1.6

Foods, Meat & Grain Decreased by ¥0.1 billion

  • Meat Products: Sales struggled and profits declined due to higher costs from elevated overseas market conditions and sluggish domestic market trends.

  • Steel & Steel Tubing: Profit increased primarily due to gains associated with the divestment of a domestic

    steel subsidiary.

  • Energy: Compared to the strong performance in the previous period, profit decreased due to reduced demand.

  • Environment-related: Profit decreased due to the absence of gains on the sale of idle assets that were recorded in the same period of the previous year.

  • Plant: Profit decreased due to a reduction in the number of ODA (Official Development Assistance) projects compared to the same period of the previous year.

Steel, Materials & Plant Decreased by ¥0.2 billion

(0.2)

FY2025 2Q

FY2026 2Q

Motor Vehicles & Aerospace Decreased by ¥0.4 billion

  • Machine Tools & Industrial Machinery: Profit decreased due to a decline in demand for capital investment.

Net Profit Breakdown