FY2026 1st Quarter Results Presentation

‌FY2026

1st Quarter Results Presentation

KITZ CORPORATION May 2026

©KITZ CORPORATION All Rights Reserved

Contents

1. ‌FY2026 1st Quarter Financial Results

2. FY2026 Forecast

3. Topics

   - Appendix -

   
   
   

   1. ‌FY2026 1st Quarter Financial Results

      Summary of FY2026 1st Quarter Results

      
      
      

      ‌(Millions of Yen)

      Sales	46,625
      YoY：+11.7%	Progress*：49.5%
      Increased YoY, driven by price revisions, foreign exchange impact, and higher demand from the semiconductor equipment market Increased by 20.1% YoY, due to higher copper prices

      • Valve Manufacturing Business

      • Metal Solutions Business

      Operating Profit	3,697
      YoY：+9.4%	Progress*：46.2%
      Decreased 3.0% year on year, mainly due to growth-related SG&A expenses, including M&A-costs, while higher raw material and component costs were offset by the effect of price revisions Increased significantly, driven by improved margins from higher copper prices and increased sales of processed products

      • Valve Manufacturing Business

      • Metal Solutions Business

      Profit Attributable to Owners of the Parent	3,657
      YoY：+26.5% Progress*：57.1%

      • Increased due to gains on sales of property, plant and equipment associated with land sales at the U.S. subsidiary

      *Impact of Middle East Situation as of Q1 Was Limited

      • Delayed recognition of approximately ¥190m in sales due to shipment delays for Middle East projects

      *Note 1: Progress against H1 Plan

      *Note 2: The Brass Bar Manufacturing Business has been renamed the Metal Solutions Business. Hereafter, 'Metal S' may be used as an abbreviation.

      Operating Profit Analysis by Factors

      
      
      

      ‌Offset the Impact of Cost Increases

      • Material, parts, and energy cost increased by approx. ¥570m

      • Absorbed these increases through cost reduction efforts and price revision effects

      Main Factors of SG&A Increase: Strategic Spending for Future Growth

      ・M&A-related costs increased by approx. ¥200m

      • Enhanced business development in the India and semiconductor markets

        ・U.S. warehouse expansion costs increased by approx. ¥100m

      • Strengthened supply capabilities for the data center market

      ・R&D spending for semiconductor equipment increased by approx. ¥100m

      ・IT & DX investments increased by approx. ¥100m

      (Millions of Yen)

      6,000

      5,000

      4,000

      3,000

      Sales Volume Product Mix

      +990

      Cost Reduction

      +150

      Material Cost

      -360

      Parts & Energy Cost

      -210

      SG&A

      -590

      Strong Performance of the Metal S

      Metal S Other Adjustment

      +440

      Forex

      -100

      2,000

      1,000

      0

      3,378

      FY2025 Q1

      Results

      Valve Manufacturing Business OP Analysis

      3,697

      FY2026 Q1

      Results

      FY2026 1st Quarter Results

      
      
      

      ‌(Millions of Yen)

      	FY2025	FY2026			Progress against H1
      	Q1	Q1	YoY Change
      	Results	Results
      Sales	41,740	46,625	4,884	11.7%	49.5%
      Valve Manufacturing	33,260	36,530	3,270	9.8%	48.7%
      Metal Solutions	7,966	9,571	1,604	20.1%	53.2%
      Operating Profit	3,378	3,697	318	9.4%	46.2%
      %	8.1%	7.9%
      Valve Manufacturing	4,386	4,255	(130)	(3.0)%	43.2%
      Metal Solutions	122	592	470	383.6%	98.8%
      Ordinary Profit	3,996	4,193	197	4.9%	50.8%
      %	9.6%	9.0%
      Profit Attributable to Owners of the Parent	2,890	3,657	766	26.5%	57.1%
      %	6.9%	7.8%
      Yen / US Dollar	151.18	156.47
      Yen / Euro	159.29	183.51	*Note	: Total Sales an	d Operating Profit
      Electrolytic Copper, Yen/ kg	1,471	2,107	includ	e other segment	and adjustment.

      ‌(Millions of Yen)

      Sales/OP OP Margin

      50,000

      40,000

      30,000

      20,000

      10,000

      0

      Sales(Left)

      OP(Right)

      Q1 Q2 Q3 Q4 Q1

      5,000

      4,000

      3,000

      2,000

      1,000

      0

      12.0%

      11.0%

      10.0%

      9.0%

      8.0%

      7.0%

      6.0%

      5.0%

      10.2%

      8.8%

      8.1%

      7.8%

      7.9%

      
      
      

      Q1 Q2 Q3 Q4 Q1

      FY2025 FY2026 FY2025 FY2026

      (Millions of Yen)

      	FY2025				FY2026
      	Q1	Q2	Q3	Q4	Q1
      Sales	41,740	44,640	44,435	45,866	46,625
      Operating Profit	3,378	4,555	3,931	3,589	3,697
      Ordinary Profit	3,996	4,377	4,035	3,662	4,193
      Net Profit	2,890	3,078	2,820	2,676	3,657
      OP Margin	8.1%	10.2%	8.8%	7.8%	7.9%

      Quarterly Results (Consolidated)

      
      
      

      ‌(Millions of Yen)

      Sales/OP OP Margin

      40,000

      35,000

      30,000

      25,000

      20,000

      15,000

      10,000

      5,000

      0

      Sales(Left)

      OP(Right)

      Q1 Q2 Q3 Q4 Q1

      6,000

      5,000

      4,000

      3,000

      2,000

      1,000

      0

      17.0%

      15.0%

      13.0%

      11.0%

      9.0%

      7.0%

      5.0%

      15.1%

      13.2%

      13.4%

      11.7% 11.7%

      
      
      

      Q1 Q2 Q3 Q4 Q1

      FY2025 FY2026 FY2025 FY2026

      (Millions of Yen)

      	FY2025				FY2026
      	Q1	Q2	Q3	Q4	Q1
      Sales	33,260	35,832	35,616	36,706	36,530
      Operating Profit	4,386	5,428	4,785	4,285	4,255
      OP Margin	13.2%	15.1%	13.4%	11.7%	11.7%

      Quarterly Results (Valve Manufacturing)

      
      
      

      Valve Manufacturing Business Results - Sales by Market -

      
      
      

      • ‌Building & Facilities: Increased YoY due to domestic and overseas price revisions

      • Petrochemicals: Decreased YoY due to the absence of large-scale project sales as seen in previous year

      • Water Treatment: Increased YoY due to higher demand for replacement and renewal projects

      • Semiconductor Equipment / Semiconductor Materials (Filters): Increased YoY due to demand expansion

      • Fine Chemicals : Decreased YoY due to a gap in the delivery timing of project-based orders

      • Hydrogen & Clean Energy : Increased YoY, supported by the booking of hydrogen station-related projects

      • Other : Increased YoY on the back of the solid domestic demand and price revisions

        (Billions of Yen)

        		Q1	FY20 Q2	25 Q3	Q4	FY2026 Q1	YoY Change
        Building & Facilities		7.6	8.4	7.9	8.7	8.5	0.9	12.1%
        C Petrochemicals O		8.2	7.5	8.1	6.8	8.0	(0.2)	(2.6)%
        R Water Treatment		2.5	2.6	2.8	2.9	2.6	0.2	6.0%
        E Machinery & Equipment		2.5	2.4	2.4	2.7	2.5	0.0	1.5%
        Core Total		20.8	21.0	21.3	21.1	21.7	0.9	4.3%
        G Semiconductor Equipment		5.1	6.0	5.8	6.2	6.0	1.0	19.4%
        R Semiconductor Materials (Filters)		1.3	1.3	1.3	1.4	1.4	0.2	13.2%
        W Fine Chemicals		0.9	1.1	0.9	0.9	0.8	(0.1)	(9.1)%
        T Hydrogen & Clean Energy		0.3	0.4	0.5	0.7	0.5	0.1	38.2%
        	Growth 合計	7.6	8.7	8.5	9.2	8.7	1.2	15.7%
        	Other	4.9	6.1	5.8	6.4	6.1	1.2	24.0%
        	Total	33.2	35.9	35.6	36.7	36.5	3.3	10.0%

        O H

        Note1 : Some figures were revised from FY2026 Q1, following a review of aggregation processes as a result of enhanced data collection accuracy.

        Valve Manufacturing Business Results - Sales by Region -

        
        
        

      • ‌Domestic sales increased by 9.6% YoY, while overseas sales increased by 10.1% YoY.

      • Composition of Sales: Domestic 59% and overseas 41%

      • Americas: Remained flat YoY with mixed market conditions

      • ASEAN, Korea, Middle East and other: Increased YoY, supported by higher sales in the semiconductor equipment market and distribution channels in ASEAN and South Korea.

      • China: Remained flat YoY, driven by data center and semiconductor demand despite weak economic conditions

      • Europe, etc.: Decreased YoY amid a sluggish economic environment

        (Billions of Yen)

        	FY2025				FY2026		YoY Change
        	Q1	Q2	Q3	Q4	Q1
        Japan	19.5	21.1	20.0	21.8		21.4	1.9	9.6%
        Overseas Total	13.7	14.7	15.7	14.9		15.1	1.4	10.1%
        ASEAN, Korea, Middle East and other	4.2	5.4	4.9	4.9		5.3	1.2	28.0%
        China	2.6	2.7	3.3	3.1		2.7	0.1	3.7%
        India	0.4	0.6	0.7	0.6		0.6	0.2	40.1%
        Asia Total	7.2	8.8	9.0	8.6		8.6	1.4	19.8%
        Americas (North and South America)	5.0	4.7	5.6	4.9		5.2	0.1	2.8%
        Europe, etc.	1.5	1.1	1.1	1.4		1.3	(0.2)	(11.6)%

        Note : Since figures are shown in units of billion yen, totals may not align to the calculation.

        Metal Solutions Business

        
        
        

      • ‌Sales : Increased by ¥1,604m YoY, on the back of higher copper prices.

      • Operating Profit : Increased by ¥470m, driven by improved margins from higher copper prices and increased sales of processed products

      (Millions of Yen)

      	FY2025	FY2026	YoY Change		Progress against H1
      	Q1	Q1
      	Results	Results
      Sales	7,966	9,571	1,604	20.1%	53.2%
      Operating Profit	122	592	470	383.6%	98.8%
      Electrolytic Copper Yen / kg	1,471	2,107

      （Yen/kg）

      
      
      

      2,200

      1,900

      1,600

      1,300

      1,000

      25/4 25/7 25/10 26/1

      Brass products Electrolytic Copper price over the past year

      Major Management Indicators

      
      
      

      ‌(Millions of Yen)

      	Consolidated
      	FY2025 Q1	FY2026 Q1
      	Results	Results
      Sales	41,740	46,625
      Operating Profit	3,378	3,697
      Ordinary Profit	3,996	4,193
      Profit Attributable to Owners	2,890	3,657
      of the Parent
      Overseas Sales Ratio	33.4%	33.2%
      Overseas Sales Ratio in Valve Manufacturing Business	41.3%	41.4%
      Interest-bearing Debt	36,101	40,715
      Equity Ratio	62.8%	62.6%
      ROE	ー	ー
      BPS (Yen)	1,221.92	1,380.42
      EPS (Yen)	33.25	42.06

      Non-operating and ExtraOrdinary Profit and Loss

      
      
      

      ‌(Millions of Yen)

      	FY2025 Q1 Results	FY2026 Q1 Results	YoY Change	Note
      Operating Profit	3,378	3,697	318
      Non-operating Income	769	671	(97)
      Non-operating Expenses	151	175	23
      Ordinary Profit	3,996	4,193	197
      Extraordinary Income	272	1,254	981	Gain on sale of PPE +1,250 (FY2025: 3→FY2026: 1,253）
      Extraordinary Losses	20	4	(15)
      Profit before Income Taxes	4,247	5,442	1,194
      Income Taxes	1,311	1,701	389
      Profit	2,936	3,741	804
      Profit Attributable to Non-controlling Interests	45	84	38
      Profit Attributable to Owners of the Parent	2,890	3,657	766

      Balance Sheet

      
      
      

      ‌Total assets increased by ¥7,243m due to an increase in both current and non-current assets.

      • Current assets: Inventories increased by ¥3,611m. Cash and deposits increased by ¥1,208m. Trade receivables increased by ¥942m.

      • Non-current assets: PPE decreased by ¥195m. Intangible assets increased by ¥649m.

      • Liabilities: Provision for bonuses decreased by ¥1,704m. Short-term borrowings increased by ¥4,231m. Trade payables increased by ¥2,485m.

      • Interest bearing debts: Increased by ¥3,701m to ¥40,715m (Net interest-bearing debt increased by ¥2,493m to

        ¥11,267m）

      • Net assets: Increased by ¥1,866m due to the recording of profit attributable to owners of parent and an increase in foreign currency translation adjustment

        Assets	December 2025	March 2026	Change		Liabilities	December 2025	March 2026	Change
        Current Assets	110,281	116,650	6,369		Current Liabilities	27,232	33,076	5,844
        Non-current Assets	74,044	74,918	874		Non-current	37,302	36,834	(467)
        PPE	61,566	61,371	(195)	Total Liabilities		64,535	69,911	5,376

        (Millions of Yen)

        Liabilities

        2,167	2,817	649
        10,310	10,730	419	Net Assets	119,790	121,657	1,866

        Intangible

        Investments and Other

        Total Assets 184,325 191,569 7,243

        Total Liabilities 184,325 191,569 7,243 and Net Assets

        
        
        

   2. ‌FY2026 Forecast

      ‌Middle East Situation

FY2026 Forecast － Key Assumptions

【Assumptions】

• Excluded impact from the full-year forecast due to high uncertainty

• Plan to disclose details once on operating performance becomes clear

  【Impact】

• Impact in Q1 remained limited

• Risks of shipment delays and potential cancellations for Middle East projects, accounting less than 1% of consolidated revenue.

• Potential risks of higher energy costs and prices for parts and other materials

  • Consider price pass-through as needed

• Potential risks of supply instability for coating materials and cutting fluid

  • Secure alternative suppliers and materials

• Anticipate recovery-driven demand in building & facilities and oil & gas markets after normalization.

  【Assumptions】

• Excluded impact from the full-year forecast due to ongoing evaluation of potential effects

• Plan to disclose details once the financial impact can be reasonably assessed.

  【Impact】

• Acquire all shares on June 1: earnings contribution expected from H2

(Reference)

• Latest performance of V TEX Corporation

  FY2025*1	Sales	OP
  Non-consolidated	¥8,502m	¥395m
  Consolidated*2	¥9,380m	¥549m

  *1 Ended March 2025

  *2 The consolidated figures are internal management figures calculated after eliminating intercompany transactions between V TEX and its subsidiaries and are provided as unaudited reference values.

  FY2026 Forecast

  
  
  

  ‌(Millions of Yen)

  	FY2025 Results	FY2026 Plan and Progress
  		Q1 Results	Q2	H1	H2	Full Year	YoY %
  Sales	176,682	46,625	47,574	94,200	100,800	195,000	10.4%
  Operating Profit	15,454	3,697	4,302	8,000	9,000	17,000	10.0%
  %	8.7%	7.9%	9.0%	8.5%	8.9%	8.7%
  Ordinary Profit %	16,071 9.1%	4,193 9.0%	4,056 8.5%	8,250 8.8%	9,150 9.1%	17,400 8.9%	8.3%
  Profit Attributable to Owners of the Parent	11,465	3,657	2,742	6,400	6,300	12,700	10.8%
  %	6.5%	7.8%	5.8%	6.8%	6.3%	6.5%
  ROE	10.1%	ー	ー	ー	ー	10.4%	ー
  BPS (Yen)	1,358.57	1,380.42	ー	ー	ー	1,444.52	6.3%
  EPS (Yen)	131.85	42.06	ー	ー	ー	146.02	10.7%
  Yen/ US Dollar	149.78	156.47 183.51 2,107	155.00 184.00 1,470
  Yen/ Euro	169.51
  Electrolytic Copper	1,536
  Yen/ kg

  FY2026 Forecast (By Segment)

  
  
  

  ‌(Millions of Yen)

  Sales	FY2025 Results	FY2026 Plan and Progress
  		Q1 Results	Q2	H1	H2	Full Year	YoY %
  Valve	141,415	36,530	38,469	75,000	81,200	156,200	10.5%
  Metal S	32,514	9,571	8,428	18,000	18,000	36,000	10.7%
  Other	2,752	523	676	1,200	1,600	2,800	1.7%
  Total	176,682	46,625	47,574	94,200	100,800	195,000	10.4%

  (Millions of Yen)

  Operating Profit	FY2025 Results	FY2026 Plan and Progress
  		Q1 Results	Q2	H1	H2	Full Year	YoY %
  Valve	18,886	4,255	5,594	9,850	11,050	20,900	10.7%
  %	13.4%	11.7%	14.5%	13.1%	13.5%	13.4%
  Metal S	865	592	7	600	400	1,000	15.6%
  %	2.7%	6.2%	0.1%	3.3%	2.2%	2.8%
  Other	171	(46)	46	0	100	100	(41.5)%
  Adjustment	(4,467)	(1,105)	(1,344)	(2,450)	(2,550)	(5,000)	ー
  Total	15,454	3,697	4,302	8,000	9,000	17,000	10.0%

  Shareholder Return

  
  
  

  ‌Raise the ideal dividend payout ratio from approx. 35% to at least 40% (effective from FY2025)

  Shareholder return policy Dividend results and forecast

  親会社株主に帰属する当期純利益

  Profit attributable to owners of the parent

  Shareholder return

  
  
  

  • FY2025 results: ¥53 per share

    - 5 consecutive years of growth

    (¥21 in Q2 and ¥32 in Q4)

    DPR standard

    25%

    35%

    40%

  • FY2026 plan: ¥59 per share (¥29 in Q2 and ¥30 in Q4)

Topics①

Acquisition of a Semiconductor Equipment Valve Manufacturer

‌On March 26, we announced our decision to acquire 100% of the shares of V TEX Corporation, which specializes in vacuum valves for semiconductor equipment, and make it a wholly owned subsidiary. This acquisition aims to strengthen our business foundation in the vacuum and pressure control field, a key area in advanced semiconductor manufacturing.

V TEX Tokai Plant

Expected Synergies

1. Enhance solution capabilities by expanding the vacuum valve product portfolio

2. Drive revenue growth through shared customer bases and sales channels

3. Reinforce the business foundation through integrated development, sourcing, and manufacturing.

   • Overview of the acquisition of the shares

     Acquisition of all shares of V TEX Corporation, which are owned by Kanadevia Corporation
     Purchase Price	¥9,198m
     Closing Date	June 1st, 2026（planned）

     Major Products

     
     
     

   • Overview of V TEX Corporation

Topics②

Aqua Rescue Featured in Newsweek Japan

‌Our portable water purification system, Aqua Rescue, was featured in the April 7, 2026 issue of Newsweek Japan.

Against the backdrop of aging water pipelines and declining populations, the article introduced detailed examples of how decentralized water treatment solutions provide practical operational benefits for municipalities.

Through KITZ Water Solutions, which consolidates the Group's water-related technologies, we will enhance our solution offerings to address social challenges, from upgrading water infrastructure in normal times to ensuring a safe and reliable water supply in disaster situations.

Article: (Japanese only)

400

Sales trend of Aqua Series

(millions of yen)

300

200

100

0

2012年

2022年

2023年

2024年

2025年

"A Small Water Purification Plant Saving Shrinking Municipalities - Toward a Society Where Everyone Can Always Access Safe Water"

Topics③

Introduced a New Solution for Daily Hydrogen Use

Hydrogen storage cartridge refilling cabinet (concept image)

‌To promote local hydrogen production and consumption and expand everyday hydrogen use, we unveiled a one-third-scale concept model of a hydrogen storage cartridge refilling cabinet, currently under joint development with ABILITY Co., Ltd., at H2 & FC EXPO held from March 17 to 19.

We aim to create a system that enables anyone to use hydrogen safely and easily as a familiar, community-based energy source, with commercialization targeted for 2027.

By focusing on daily hydrogen use in urban areas and living spaces, we will explore new applications and markets and work toward building a recurring revenue model through post-installation operation and replacement demand, thereby expanding into new business domains.

Topics➃

Growth Strategy Communicated Through a YouTube Interview

‌On April 10, an interview video featuring KITZ's President and a well-known individual-investor influencer was released on the official YouTube channel of Japanese Investor, a financial magazine for individual investors.

Through the discussion, KITZ communicated its strengths, business portfolio, and medium to long-term growth strategy in a clear and accessible manner for individual investors. Going forward, the Company aims to further expand IR communication by leveraging a wider range of outreach channels.

A Hidden Semiconductor Stock!?

YouTube Video (Japanese only) ：https://youtu.be/U42h5OQokog

‌

‌Appendix

Cash Flows

(Millions of Yen)

Electrolytic Copper Market

‌(yen/kg)

2,400

2,200

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

22/1 22/4 22/7 22/10 23/1 23/4 23/7 23/10 24/1 24/4 24/7 24/10 25/1 25/4 25/7 25/10 26/1

LME Copper Market

‌（USD/ton）

14,000

13,000

12,000

11,000

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

22/1 22/4 22/7 22/10 23/1 23/4 23/7 23/10 24/1 24/4 24/7 24/10 25/1 25/4 25/7 25/10 26/1

Crude Oil Price

‌(USD/Barrel)

140

120

100

80

60

40

20