Summary of Consolidated Financial Results for the Year Ended March 31, 2025

Summary of Consolidated Financial Results for the Year Ended March 31, 2025 [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

Inquiries: Aki Sato Financial Management Headquarters

May 14, 2025

General Manager of Finance & Accounting Dept.

Telephone: +81-45-503-8106

Scheduled date of annual general meeting of shareholders: June 25, 2025 Scheduled date to commence dividend payments: June 26, 2025 Scheduled date to file annual securities report: June 24, 2025

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, 2025 (April 1, 2024 to March 31, 2025)

   (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, 2025 March 31, 2024	Millions of yen 85,367 70,525	% 21.0 (2.5)	Millions of yen 6,112 2,491	% 145.3 12.9	Millions of yen 6,646 3,259	% 103.9 21.5	Millions of yen 4,783 3,434	% 39.3 65.8

   (Note) Comprehensive income:	Fiscal year ended March 31, 2025:	¥	3,318 million	[	(26.8) %]
   	Fiscal year ended March 31, 2024:	¥	4,531 million	[	87.4%]

   	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, 2025	76.28	-	9.4	5.2	7.2
   March 31, 2024	54.76	-	7.2	2.7	3.5

   (Reference) Equity in earnings (losses) of affiliated companies:	Fiscal year ended March 31, 2025:	¥	466 million
   (2) Consolidated Financial Position	Fiscal year ended March 31, 2024:	¥	348 million

   	Total assets	Net assets	Capital adequacy ratio	Net assets per share
   As of March 31, 2025 March 31, 2024	Millions of yen 126,005 129,563	Millions of yen 51,711 49,647	% 41.0 38.3	Yen 824.52 791.61

   (Reference) Equity: As of March 31, 2025:	¥	51,711 million
   As of March 31, 2024:	¥	49,647 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 the end of period
   Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 3,743 (5,905)	Millions of yen (317) 1,717	Millions of yen (4,452) 7,407	Millions of yen 8,132 9,183

2. Dividends

   	Annual dividends					Total dividends	Payout ratio (consolidated)	Dividends to net assets (consolidated)
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended March 31, 2024 March 31, 2025	Yen - -	Yen 5.00 5.00	Yen - -	Yen 15.00 18.00	Yen 20.00 23.00	Millions of yen 1,254 1,443	% 36.5 30.2	% 2.6 2.8
   Fiscal year ending March 31, 2026 (Forecast)	-	5.00	-	18.00	23.00		41.2

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

* Notes:

1. Significant changes in the scope of consolidation during the period: None

   Newly included:	- (Company name:	- )
   Excluded:	- (Company name:	- )

2. 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

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): March 31, 2025: 62,844,251 shares

      March 31, 2024: 62,844,251 shares

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

      March 31, 2025: 127,015 shares

      March 31, 2024: 126,963 shares

   3. Average number of shares outstanding during the period:

Fiscal Year ended March 31, 2025: 62,717,254 shares

Fiscal Year ended March 31, 2024: 62,717,326 shares

• 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 Sheets

   (Millions of yen)

   As of March 31, 2024 As of March 31, 2025

   Assets

   Current assets
   Cash and deposits	9,487	8,170
   Notes receivable - trade	303	311
   Electronically recorded monetary claims -operating	1,376	2,682
   Accounts receivable - trade	20,087	21,066
   Contract assets	9,952	6,771
   Finished goods	4,740	4,889
   Semi-finished goods	10,398	11,947
   Work in process	34,845	33,364
   Raw materials and supplies	513	434
   Other	3,167	3,195
   Total current assets	94,873	92,833
   Non-current assets
   Property, plant and equipment
   Buildings and structures, net	9,925	9,406
   Machinery, equipment and vehicles, net	494	636
   Tools, furniture and fixtures, net	1,029	822
   Land	2,527	2,527
   Leased assets, net	740	604
   Construction in progress	156	247
   Total property, plant and equipment	14,873	14,245
   Intangible assets	566	449
   Investments and other assets
   Investment securities	13,868	11,991
   Deferred tax assets	3,262	4,130
   Retirement benefit asset	25	0
   Other	2,102	2,363
   Allowance for doubtful accounts	(9)	(9)
   Total investments and other assets	19,249	18,477
   Total non-current assets	34,689	33,171
   Total assets	129,563	126,005

   (Millions of yen)

   As of March 31, 2024 As of March 31, 2025

   Liabilities

   Current liabilities
   Notes and accounts payable - trade	10,313	9,410
   Electronically recorded obligations - operating	5,378	3,021
   Contract liabilities	14,149	13,786
   Short-term borrowings	21,000	15,700
   Current portion of long-term borrowings	7,200	5,500
   Income taxes payable	2,082	2,482
   Provision for bonuses for directors (and other officers)	148	250
   Provision for loss on orders received	1,169	1,223
   Provision for product warranties	-	95
   Other	6,116	6,967
   Total current liabilities	67,556	58,437
   Non-current liabilities
   Long-term borrowings	7,800	11,800
   Retirement benefit liability	3,749	3,350
   Asset retirement obligations	129	123
   Provision for product warranties	48	31
   Deferred tax liabilities	3	6
   Other	628	543
   Total non-current liabilities	12,359	15,855
   Total liabilities	79,916	74,293
   Net assets
   Shareholders' equity
   Share capital	6,270	6,270
   Capital surplus	4,625	4,625
   Retained earnings	32,871	36,400
   Treasury shares	(45)	(45)
   Total shareholders' equity	43,722	47,251
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	4,691	3,152
   Foreign currency translation adjustment	755	614
   Remeasurements of defined benefit plans	478	693
   Total accumulated other comprehensive income	5,925	4,460
   Total net assets	49,647	51,711
   Total liabilities and net assets	129,563	126,005

2. Consolidated Statements of Income and Comprehensive Income

   Consolidated Statements of Income
   		(Millions of yen)
   	For the fiscal year	For the fiscal year
   	ended March 31, 2024	ended March 31, 2025
   Net sales	70,525	85,367
   Cost of sales	56,232	66,641
   Gross profit	14,293	18,725
   Selling, general and administrative expenses
   Salaries and allowances	3,177	3,454
   Bonuses	933	1,254
   Provision for bonuses for directors (and other officers)	147	222
   Retirement benefit expenses	195	170
   Depreciation	392	350
   Packing and delivery expenses	1,045	1,186
   Provision of allowance for doubtful accounts	(0)	-
   Other	5,908	5,974
   Total selling, general and administrative expenses	11,801	12,613
   Operating profit	2,491	6,112
   Non-operating income
   Dividend income	185	180
   Insurance claim income	188	172
   Share of profit of entities accounted for using equity method	348	466
   Foreign exchange gains	86	-
   Other	188	208
   Total non-operating income	996	1,027
   Non-operating expenses
   Interest expenses	142	276
   Financing expenses	42	71
   Foreign exchange losses	-	101
   Other	42	43
   Total non-operating expenses	228	493
   Ordinary profit	3,259	6,646
   Extraordinary income
   Gain on sale of non-current assets	0	16
   Gain on sale of investment securities	1,855	253
   Total extraordinary income	1,855	270
   Extraordinary losses
   Loss on sale and retirement of non-current assets	23	20
   Loss on sale of investment securities	-	2
   Loss on valuation of shares of subsidiaries and associates	-	7
   Impairment losses	-	29
   Total extraordinary losses	23	59
   Profit before income taxes	5,092	6,857

   (Millions of yen)

   	For the fiscal year	For the fiscal year
   	ended March 31, 2024	ended March 31, 2025
   Income taxes - current	1,785	2,440
   Income taxes - deferred	(128)	(366)
   Total income taxes	1,657	2,073
   Profit	3,434	4,783
   Profit attributable to non-controlling interests	-	-
   Profit attributable to owners of parent	3,434	4,783

   Consolidated Statements of Comprehensive Income
   		(Millions of yen)
   	For the fiscal year	For the fiscal year
   	ended March 31, 2024	ended March 31, 2025
   Profit	3,434	4,783
   Other comprehensive income
   Valuation difference on available-for-sale securities	310	(1,539)
   Foreign currency translation adjustment	400	(88)
   Remeasurements of defined benefit plans, net of tax	261	215
   Share of other comprehensive income of entities accounted for using equity method	125	(52)
   Total other comprehensive income	1,097	(1,465)
   Comprehensive income	4,531	3,318
   Comprehensive income attributable to

   Comprehensive income attributable to owners of parent

   4,531 3,318

   Comprehensive income attributable to non-controlling

   interests

   -

   -

3. Consolidated Statements of Changes in Equity

For the fiscal year ended March 31, 2024

(Millions of yen)

For the fiscal year ended March 31, 2025

(Millions of yen)