Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2026(Under Japanese GAAP)

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (Under Japanese GAAP)

Company name: Kyosan Electric Manufacturing Co.,Ltd. Listing: Tokyo Stock Exchange

Securities code: 6742

URL: https://www.kyosan.co.jp

Representative: Ryoji Kunisawa Representative Director, President Executive Officer

May 15, 2026

Inquiries: Aki Sato

Telephone: +81-45-503-8106

Financial Management Headquarters

General Manager of Finance & Accounting Dept.

Scheduled date of annual general meeting of shareholders: June 24, 2026 Scheduled date to commence dividend payments: June 25, 2026 Scheduled date to file annual securities report: June 23, 2026

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 fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 93,122 85,367	% 9.1 21.0	Millions of yen 4,503 6,112	% (26.3) 145.3	Millions of yen 5,203 6,646	% (21.7) 103.9	Millions of yen 5,042 4,783	% 5.4 39.3

      Note: Comprehensive income	For the fiscal year ended March 31, 2026:	¥	5,895 million [	77.6%]
      	For the fiscal year ended March 31, 2025:	¥	3,318 million [	(26.8) %]

      	Basic earnings per share	Diluted earnings per share	Rate of return on equity	Ordinary profit to total assets ratio	Operating profit to net sales ratio
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2026	81.37	-	9.4	4.2	4.8
      March 31, 2025	76.28	-	9.4	5.2	7.2

      Reference: Share of profit (loss) of entities accounted for using equity method

      For the fiscal year ended March 31, 2026:	¥	445 million
      For the fiscal year ended March 31, 2025:	¥	466 million

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of March 31, 2026 March 31, 2025	Millions of yen 119,208 126,005	Millions of yen 55,668 51,711	% 46.7 41.0	Yen 901.92 824.52

      Reference: Equity

      As of March 31, 2026:	¥	55,668 million
      As of March 31, 2025:	¥	51,711 million

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 3,391 3,743	Millions of yen (471) (317)	Millions of yen (4,169) (4,452)	Millions of yen 6,898 8,132

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Fiscal year ended March 31, 2025	-	5.00	-	18.00	23.00	1,443	30.2	2.8
   Fiscal year ended March 31, 2026	-	5.00	-	20.00	25.00	1,543	30.7	2.9
   Fiscal year ending March 31, 2027 (Forecast)	-	5.00	-	22.00	27.00		39.7

   Note: Breakdown of the year-end dividend for the fiscal year ended March 31, 2026 : Commemorative dividend - yen

   Special dividend - yen

3. Consolidated financial result forecasts for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027)

(Percentages indicate year-on-year changes.)

1. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

2. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2026	62,844,251 shares
      As of March 31, 2025	62,844,251 shares

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

      As of March 31, 2026	1,121,879 shares
      As of March 31, 2025	127,015 shares

   3. Average number of shares outstanding during the period

[Reference] Overview of non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

1. Non-consolidated operating results (Percentages indicate year-on-year changes.)

   	Net sales		Operating profit		Ordinary profit		Profit
   Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 83,988 75,617	% 11.1 22.1	Millions of yen 2,562 4,502	% (43.1) 154.2	Millions of yen 3,665 5,808	% (36.9) 119.0	Millions of yen 4,025 4,200	% (4.2) 32.1

   	Basic earnings per share	Diluted earnings per share
   Fiscal year ended	Yen	Yen
   March 31, 2026	64.93	-
   March 31, 2025	66.94	-

2. Non-consolidated financial position

Reference: Equity

• Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters

The forecasts and other forward-looking statements in this document are based on information currently available to the Company and certain assumptions deemed to be reasonable.

Actual results may differ materially from these forecasts due to various factors.

‌Consolidated Financial Statements

1. Consolidated Balance Sheet

   (Millions of yen)

   As of March 31, 2025

   As of March 31, 2026

   Assets

   Current assets
   Cash and deposits	8,170	6,938
   Notes receivable - trade	311	55
   Electronically recorded monetary claims -operating	2,682	1,354
   Accounts receivable - trade	21,066	24,584
   Contract assets	6,771	5,344
   Finished goods	4,889	4,511
   Semi-finished goods	11,947	10,019
   Work in process	33,364	26,345
   Raw materials and supplies	434	508
   Other	3,195	4,533
   Total current assets	92,833	84,195
   Non-current assets
   Property, plant and equipment
   Buildings and structures, net	9,406	9,034
   Machinery, equipment and vehicles, net	636	606
   Tools, furniture and fixtures, net	822	697
   Land	2,527	2,527
   Leased assets, net	604	514
   Construction in progress	247	359
   Total property, plant and equipment	14,245	13,741
   Intangible assets	449	405
   Investments and other assets
   Investment securities	11,991	12,430
   Deferred tax assets	4,130	3,826
   Retirement benefit asset	0	1,294
   Other	2,363	3,323
   Allowance for doubtful accounts	(9)	(9)
   Total investments and other assets	18,477	20,865
   Total non-current assets	33,171	35,013
   Total assets	126,005	119,208

   Provision for bonuses for directors (and other officers)

   250

   153

   (Millions of yen)

   As of March 31, 2025 As of March 31, 2026

   Liabilities

   Current liabilities

   Notes and accounts payable - trade 9,410 8,176

   Electronically recorded obligations - operating 3,021 1,612

   Contract liabilities 13,786 8,049

   Short-term borrowings 15,700 17,400

   Current portion of long-term borrowings 5,500 2,700

   Income taxes payable 2,482 1,992

   Provision for loss on orders received 1,223 1,106

   Provision for product warranties 95 184

   Other 6,967 6,788

   Total current liabilities 58,437 48,162

   Non-current liabilities

   Long-term borrowings 11,800 10,900

   Asset retirement obligations 123 126

   Retirement benefit liability 3,350 3,733

   Provision for share-based payments - 98

   Provision for product warranties 31 28

   Other 543 481

   Deferred tax liabilities 6 8

   Total liabilities 74,293 63,539

   Total non-current liabilities 15,855 15,377

   Shareholders' equity

   Net assets

   Capital surplus 4,625 4,625

   Share capital 6,270 6,270

   Treasury shares (45) (545)

   Retained earnings 36,400 40,004

   Accumulated other comprehensive income

   Total shareholders' equity 47,251 50,355

   Foreign currency translation adjustment 614 681

   Valuation difference on available-for-sale securities

   3,152 3,423

   Total accumulated other comprehensive income 4,460 5,313

   Remeasurements of defined benefit plans 693 1,209

   Total net assets 51,711 55,668

   Total liabilities and net assets 126,005 119,208

2. Consolidated Statements of Income and Comprehensive Income

   Consolidated Statement of Income

   Loss on valuation of shares of subsidiaries and associates

   7

   -

   For the fiscal year ended March 31, 2025

   (Millions of yen)

   For the fiscal year ended March 31, 2026

   Net sales 85,367 93,122

   Cost of sales 66,641 75,322

   Gross profit 18,725 17,799

   Selling, general and administrative expenses

   Salaries and allowances 3,454 3,572

   Provision for bonuses for directors (and other officers) 222 183

   Bonuses 1,254 1,283

   Retirement benefit expenses 170 169

   Provision for share-based payments - 98

   Packing and delivery expenses 1,186 1,203

   Depreciation 350 340

   Total selling, general and administrative expenses 12,613 13,296

   Other 5,974 6,446

   Non-operating income

   Operating profit 6,112 4,503

   Insurance claim income 172 189

   Dividend income 180 197

   Foreign exchange gains - 213

   Share of profit of entities accounted for using equity method

   466 445

   Total non-operating income 1,027 1,281

   Other 208 235

   Interest expenses 276 414

   Non-operating expenses

   Foreign exchange losses 101 -

   Financing expenses 71 68

   Total non-operating expenses 493 580

   Other 43 97

   Extraordinary income

   Ordinary profit 6,646 5,203

   Gain on sale of investment securities 253 1,101

   Gain on sale of non-current assets 16 2

   Total extraordinary income 270 1,554

   Compensation income for damage - 450

   Loss on sale and retirement of non-current assets 20 33

   Extraordinary losses

   Loss on sale of investment securities 2 -

   Total extraordinary losses 59 33

   Impairment losses 29 -

   Profit before income taxes 6,857 6,723

   (Millions of yen)

   	For the fiscal year	For the fiscal year
   	ended March 31, 2025	ended March 31, 2026
   Income taxes - current	2,440	1,832
   Income taxes - deferred	(366)	(150)
   Total income taxes	2,073	1,681
   Profit	4,783	5,042
   Profit attributable to non-controlling interests	-	-
   Profit attributable to owners of parent	4,783	5,042

   Consolidated Statement of Comprehensive Income
   		(Millions of yen)
   	For the fiscal year	For the fiscal year
   	ended March 31, 2025	ended March 31, 2026
   Profit	4,783	5,042
   Other comprehensive income
   Valuation difference on available-for-sale securities	(1,539)	271
   Foreign currency translation adjustment	(88)	94
   Remeasurements of defined benefit plans, net of tax	215	515
   Share of other comprehensive income of entities accounted for using equity method	(52)	(28)
   Total other comprehensive income	(1,465)	853
   Comprehensive income	3,318	5,895
   Comprehensive income attributable to

   Comprehensive income attributable to owners of parent

   3,318 5,895

   Comprehensive income attributable to non-controlling interests

   -

   -

3. Consolidated Statement of Changes in Equity

   For the fiscal year ended March 31, 2025

   (Millions of yen)

   	Shareholders' equity
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
   Balance at beginning of period	6,270	4,625	32,871	(45)	43,722
   Changes during period
   Dividends of surplus			(1,254)		(1,254)
   Profit attributable to owners of parent			4,783		4,783
   Purchase of treasury shares				(0)	(0)
   Net changes in items other than shareholders' equity
   Total changes during period	-	-	3,529	(0)	3,529
   Balance at end of period	6,270	4,625	36,400	(45)	47,251

   	Accumulated other comprehensive income				Total net assets
   	Valuation difference on available-for-sale securities	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
   Balance at beginning of period	4,691	755	478	5,925	49,647
   Changes during period
   Dividends of surplus					(1,254)
   Profit attributable to owners of parent					4,783
   Purchase of treasury shares					(0)
   Net changes in items other than shareholders' equity	(1,539)	(141)	215	(1,465)	(1,465)
   Total changes during period	(1,539)	(141)	215	(1,465)	2,063
   Balance at end of period	3,152	614	693	4,460	51,711

   For the fiscal year ended March 31, 2026

   (Millions of yen)

   	Shareholders' equity
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
   Balance at beginning of period	6,270	4,625	36,400	(45)	47,251
   Changes during period
   Dividends of surplus			(1,438)		(1,438)
   Profit attributable to owners of parent			5,042		5,042
   Purchase of treasury shares				(500)	(500)
   Net changes in items other than shareholders' equity
   Total changes during period	-	-	3,603	(500)	3,103
   Balance at end of period	6,270	4,625	40,004	(545)	50,355

   	Accumulated other comprehensive income				Total net assets
   	Valuation difference on available-for-sale securities	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
   Balance at beginning of period	3,152	614	693	4,460	51,711
   Changes during period
   Dividends of surplus					(1,438)
   Profit attributable to owners of parent					5,042
   Purchase of treasury shares					(500)
   Net changes in items other than shareholders' equity	271	66	515	853	853
   Total changes during period	271	66	515	853	3,957
   Balance at end of period	3,423	681	1,209	5,313	55,668

4. Consolidated Statement of Cash Flows

For the fiscal year ended March 31, 2025

(Millions of yen)

Loss (gain) on sale and retirement of non-current assets

3

31

Share of loss (profit) of entities accounted for using equity method

(466)

(445)

Effect of exchange rate change on cash and cash equivalents

(24)

16

For the fiscal year ended March 31, 2026

Cash flows from operating activities

Profit before income taxes 6,857 6,723

Depreciation 1,925 1,880

Increase (decrease) in allowance for doubtful accounts 0 (0)

Impairment losses 29 -

Increase (decrease) in retirement benefit liability (74) 159

Loss (gain) on sale of investment securities (251) (1,101)

Interest expenses 276 414

Interest and dividend income (266) (270)

Decrease (increase) in inventories (156) 9,314

Decrease (increase) in trade receivables 740 (500)

Increase (decrease) in contract liabilities (363) (5,737)

Increase (decrease) in trade payables (3,165) (2,668)

Other, net 693 (1,984)

Compensation for damage income - (450)

Interest and dividends received 280 295

Subtotal 5,781 5,365

Income taxes paid (2,050) (2,303)

Interest paid (267) (416)

Net cash provided by (used in) operating activities 3,743 3,391

Proceeds from compensation for damage - 450

Payments into time deposits (1,353) (1,069)

Cash flows from investing activities

Purchase of investment securities (19) (23)

Proceeds from withdrawal of time deposits 1,622 1,069

Purchase of property, plant and equipment (958) (844)

Proceeds from sale of investment securities 376 1,559

Purchase of intangible assets (44) (134)

Proceeds from sale of property, plant and equipment 3 0

Net cash provided by (used in) investing activities (317) (471)

Other, net 57 (1,029)

Net increase (decrease) in short-term borrowings (5,300) 1,700

Cash flows from financing activities

Repayments of long-term borrowings (7,700) (5,700)

Proceeds from long-term borrowings 10,000 2,000

Other, net (197) (731)

Dividends paid (1,254) (1,438)

Net cash provided by (used in) financing activities (4,452) (4,169)

Cash and cash equivalents at beginning of period 9,183 8,132

Net increase (decrease) in cash and cash equivalents (1,051) (1,234)

Cash and cash equivalents at end of period 8,132 6,898