Financial Results and Forecasts FY2025：Script for Financial Results and Medium-Term Management Plan Briefing

Financial Results Briefing for the Fiscal Year Ended August 2025 October 8, 2025

[Company Name] MANI, INC.

[Company ID] 7730-QCODE

[Event Language] JPN

[Event Type] Earnings Announcement

[Event Name] Financial Results Briefing for the Fiscal Year Ended August 2025

[Fiscal Period] FY2025 Annual

[Date] October 8, 2025

[Number of Pages] 57

[Time] 16:30 - 17:36

(Total: 66 minutes, Presentation: 51 minutes, Q&A: 15 minutes)

[Venue] Onsite venue: 6thfloor, Sapia Tower, 1-7-12 Marunouchi, Chiyoda-ku, Tokyo, 100-0005

Webcast: Microsoft Teams webinar

[Venue Size] 154 m2

[Participants] Total 91 (Onsite: 25, webinar: 66)

[Number of Speakers] 2

Masaya Watanabe Director, President and Representative

Executive Officer, CEO Takayuki Yamamoto Managing Executive Officer

[Analyst Names]* Tomoko Yoshihara UBS Securities

Satoshi Tohyama Shimotsuke Shimbun

Masao Yoshida Tokai Tokyo Intelligence Laboratory

*Analysts that SCRIPTS Asia was able to identify from the audio who spoke during Q&A or whose questions were read by moderator/company representatives.

Moderator: Now that the time has arrived, we will begin the financial results and medium-term management plan briefing of the fiscal year ended August 2025 for MANI, INC.

This briefing will be held in a hybrid format, with a live-streaming online session in addition to the on-site session.

To begin, I would like to introduce today's speakers. Mr. Masaya Watanabe, President and Representative Executive Officer, and Mr. Takayuki Yamamoto, Managing Executive Officer and CFO.

President Watanabe will give today's presentation. After his presentation, we will take questions from those attending on-site. Please note that we will not be taking questions from online participants. If you have any questions, please email our IR staff afterward.

Now, President Watanabe, please begin.

Watanabe: Thank you for taking the time out of your busy schedules to view MANI's briefing on financial results for Fiscal Year 2025 and the company's new Medium-Term Management Plan 2029.

Mr. Takayuki Yamamoto has assumed the position of CFO starting this September. Until now, Mr. Kazuo Takahashi had been the liaison with stakeholders, and Mr. Yamamoto has now taken on this role.

I would now like to explain MANI's financial results for Fiscal Year 2025.

Allow me to start with an update on the voluntary recall of "MANI DIA-BURS" in China. As previously announced, this voluntary recall began in March 2025 and was mostly completed by August 2025. The Company recalled a total of 4.2 million dia-burs.

The impact on business performance is shown in the table below. The voluntary recall led to a decrease in new orders and sales, and we also incurred costs associated with the cancellation of the original sales invoices for the products sold prior to the recall. All in all, the negative impact on profit totaled 1.192 billion yen.

We have applied for regulatory modification of the corrected products, and inquiries from the regulatory authority have, for the most part, been satisfied. It's the PRC National week holiday in China right now, so there's this hiatus, but we expect to obtain approval after that. In summary, we anticipate sales of our full lineup of dia-burs to resume from the second quarter of Fiscal Year 2026, starting in December 2025.

Our outlook for the business in China is premised on the developments I just outlined. As you can see from the chart, the recall led to a sales slump in Fiscal Year 2025. While sales of dia-burs fell to approximately 50% of pre-recall levels, we are targeting a sales recovery in this category and a return to over 90% of pre-recall levels by Fiscal Year 2027.

In fact, among our customers, 90% are using MANI's dia-burs, while also combining them with domestically produced Chinese dia-burs. We are in touch with our clients, so we will work to achieve a recovery on this front.

The Surgical and Eyeless Needle segments achieved solid sales growth in Fiscal Year 2025. Regarding the forecasts for Fiscal Year 2026 and beyond, we will work on a recovery back to a growth trajectory, responding to and capitalizing on China's localization trend.

FY2025 Financial Results & Forecasts

5

The consolidated financial results for the fiscal year ended August 2025 were as follows. We recorded 29.968 billion yen in net sales, 8.193 billion yen in operating income, 27.3% in operating income margin, and lastly, 4.643 billion yen in net income.

As you'll remember, we lowered the full-year guidance back in July. The revised forecasts can be found in the second column from the right and show a net sales and operating income outperformance of 300 million yen.

In this fiscal year's results, we conducted an asset reevaluation, which included two major items. The first was an impairment loss on the non-current assets of MMG in Germany. MMG posted its second consecutive year of losses, meaning these assets were at risk of impairment. As such, we carried out a stress test and recorded

1.19 billion yen in extraordinary losses. Specifically, we impaired the value of plant infrastructure and manufacturing equipment assets by 32%.

The second element of this asset reevaluation was the inventory disposal of long-stagnant products. We usually do just under 50 million yen in inventory write-offs, but we ended up with an inventory disposal totaling 98 million yen.

This table shows the detailed results for operating income, ordinary income, and profit before income taxes. Noteworthy here was an increase in depreciation related to the Hanaoka Factory. The factory was unoperated during the first 8 months of the year, starting in January, so we recorded the appropriate depreciation amount under non-operating expenses.

We also recorded the aforementioned impairment of non-current assets at MMG-totaling 1.19 billion yen-under extraordinary losses.

This waterfall chart shows each segment's respective contribution to net sales. While the voluntary recall of "MANI DIA-BURS" in China negatively impacted sales, the Surgical, Eyeless Needle, and Dental-excluding the category of dia-burs-all recorded year-on-year sales growth.

On the other hand, sales decreased by 37 million yen at MMG, mainly due to sluggish sales performance, especially with major customers in Europe.

This waterfall chart breaks down the net sales status by region. By and large, we saw sales growth across the board.

In Japan, we strengthened sales efforts in the Dental segment, allowing us to grow sales by 40%.

Operating income was negatively impacted by unfavorable foreign exchange rates, the voluntary recall of our dia-burs, and allowances for performance-linked bonuses, which carried over from the prior fiscal year. As I've explained before, this is a temporary factor that is offset by a positive gross profit impact thanks to an increase in sales and an improvement in the cost of sales. Additionally, while the personnel headcount grew, SG&A expenses remained under control.

I would now like to explain the financial results by segment: the upper row shows net sales, while the bottom row shows operating income. We will be looking at the results for each segment, starting with the Surgical segment.

In the fourth quarter, we saw strong sales in North America due to the partnership with MST, Microsurgical Technology. We achieved growth on a full-year basis, as sales increased by 13.8% year-on-year. Simultaneously, profitability improved due to price optimization and cost reductions.

Going forward, we want to operate our business globally-in the United States, China, Europe, and Asia.

Regarding the Eyeless Needle segment, in the fourth quarter, sales increased due to orders from suture manufacturer customers in China that acquired a contract through GPO. Including this, we registered a year-on-year sales growth of 9.4%.

Profit was down slightly. Although gross profit improved, selling, general, and administrative expenses increased by a greater amount, resulting in a slight decline in profit.

In terms of future key measures, we will expand sales in the high-end segment by leveraging our special needles' product superiority, for example, micro-surgery and black needles. Lastly, we will also work to achieve a reduction in manufacturing costs and enhance competitiveness amid increasing competition with emerging market players, particularly manufacturers in India.

Regarding the Dental segment, despite a strong performance in Japan, the Dental Segment saw a year-on-year sales contraction of 6.2%.

Additionally, our dental restoration material business at MMG, our German subsidiary, recorded an operating loss of 320 million yen. This, in turn, led to the impairment of non-current assets at MMG.

JIZAI continued seeing steady sales growth, with 340,000 units shipped cumulatively in Fiscal Year 2025 and exceeding 200 million yen in sales. That said, we view these results as merely a checkpoint on the way to new heights, so we will continue sales promotion efforts going forward.

We position a robust recovery in dia-bur sales in Fiscal Year 2026 as a key target.

FY2025 Financial Results & Forecasts

Balance Sheet Status

（¥ million）

Assets Liabilities and Net Assets

18,424

6,337

57,177

21,644

6,362

3,935

57,987

Cash & deposits

Inventories

Other current assets

57,177

57,987

25,235 28,009

Non-current assets

4,846

4,425

Liabilities

52,330

53,561 Net assets

As of August 31, 2024

As of August 31, 2025

As of August 31, 2024

As of

August 31, 2025 14

Cash and deposits decreased on the balance sheet due to the completion of the Hanaoka Factory, resulting in an accompanying increase in non-current assets.

Please refer to page 14 for other balance sheet items and details.

We recorded a cash inflow of 7.017 billion yen from operating activities, accompanied by a cash outflow of

7.154 billion yen from investing activities.

Operating cash flow was down on a year-on-year basis due to the payment of consumption tax related to completed construction at the Hanaoka Factory. This amount will be reimbursed to us next fiscal year, so when you factor this in, operating cash flow was mostly in line with the prior year's results.

FY2025 Financial Results & Forecasts

（¥ million）

FY26 Forecasts 1USD=¥143.00 1EUR=¥161.00 1CNY=¥20.00 1INR＝¥1.70

FY25 Results 1USD=¥148.91 1EUR=¥163.62 1CNY=¥20.63 1INR＝¥1.74 17

Next, I would now like to explain the consolidated financial forecasts for fiscal year 2026.

We are guiding for 32.8 billion yen in net sales, which is a year-on-year increase of 9.4%. The operating income guidance is 9.2 billion yen, which corresponds to a margin of 28%, and lastly, we are targeting 6.45 billion yen in net income. We position Fiscal Year 2026 as the first fiscal year of the recovery from the dia-burs recall, as well as the first of the four fiscal years that make up our new Medium-Term Management Plan 2029. MANI will carry out initiatives to enhance our business and delivery growth.

I will be going over the details during my explanation of the Medium-Term Management Plan 2029, but broadly speaking, we are targeting 45 billion yen in organic growth and an operating income margin of 32% by Fiscal Year 2029. MANI's management team's commitment this year is to sow the seeds we believe will ultimately allow us to achieve these goals.

That said, these targets require a variety of upfront investments, and this is expected to weigh on profits somewhat. The execution of strategic initiatives like business development and strengthening the management foundation is expected to have an impact of approximately 2 percentage points. Including these various initiatives, we want to build a robust foundation during the first two years so that we can drive growth.

As shown here, we are guiding sales and profit increases across all three segments.

Specifically, while we do expect the rate of growth to slow down in the Surgical and Eyeless Needle Segments, growth in the Dental Segment is expected to make up for this, driven by a recovery in dia-bur sales, the launch of JIZAI, and further market expansion in Japan. All in all, we expect the overall portfolio to grow by just under approximately 10%.

Now that we have completed construction of our Smart Factory, we are guiding for 3 billion yen in capex on a cash basis in fiscal year 2026. We believe this amount represents what could be termed cruising altitude when it comes to the baseline for capex investment.

MANI will continue targeting 8.5% in R&D expenses.

FY2025 Financial Results & Forecasts

配当性 向

1株当たり配当金

(Unit: ¥)

Dividend

Per Share

Dividend Payout Ratio

82.7%

65.0%

61.1%

62.6%

52.8%

55.8%

57.9%

39

39

41

30.1%

32.9%

33.6%

36.5%

35

32.3%

30

23

20

22

14

11

9

10

FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

Forecast 20

The annual dividend forecast for fiscal year 2026 is 41 yen per share, up 2 yen per share from the prior year. This concludes our overview of the financial results for Fiscal Year 2025.

Next, I would like to explain the medium-term management plan.

Let's start by defining MANI's identity. As we have discussed in the past, our vision is that of becoming a company offering "The Best Quality in the World, to the World."

Allow me to introduce our new management team: here, the upper row shows our roster of Managing Executive Officers. Mr. Takayuki Yamamoto has assumed the position of Managing Executive Officer, CFO, and Office Head of the Corporate Planning Office.

The bottom row shows our roster of Administrative Officers. Here, we welcome Doctor of Dental Medicine Ms. Keiko Yamamura, in the role of Senior Medical Officer.

Note: FY25 refers to fiscal year ending August 31, 2025

(Unit: ¥100 million)

5

Let's start with a review of the fiscal year 2025 Mid-Term Plan.

The table on page 5 shows the results over the past 4 years. Net sales grew at a CAGR of 15%, going from 17.2 billion yen to 30 billion yen between fiscal years 2021 and 2025. This was accompanied by operating income growth, which we position as a resounding success.

As we communicated back in January this year, we achieved our net sales target of 30 billion yen a year ahead of schedule.

We completed this four-year plan and are now initiating a new four-year plan running through fiscal year 2029.

I will be going over the key initiatives and progress in their execution, as well as discussing several initiatives to be carried out within the Fiscal Year 2029 Mid-Term Plan. Over the course of the Fiscal Year 2025 Mid-Term Plan, we focused on our JIZAI nickel titanium rotary file-in the Dental Segment-and our vitreous forceps, as main flagship products.

We have shipped a total of 340,000 JIZAI units. This still represents a minuscule global market share of only 1%, so we will work to grow sales, expand our reach, and improve our product's competitiveness. We will also focus on gearing up mass production at MANI's Smart Factory.

MANI launched its vitreous forceps in April 2023, which we continue refining based on feedback from doctors. We will begin shipping this new and improved version in February of 2026, and at last fully catalyze operations in this business.

Going forward, we will continue nurturing these two as main lines in MANI's product portfolio, and we set a new product sales target of 3 billion yen to be achieved by the end of fiscal year 2029.

Next are the results and plans for MMG, which is our subsidiary in the Dental Restoration Material Business. MMG offers extensive customization options and highly aesthetic products, thus contributing to strengthening MANI's dental business portfolio.

Unfortunately, MMG has posted two consecutive years of losses, so we will work to turn around from this loss-making situation as soon as possible. As we work to grow sales, we will expand our OEM business and business under our own MANI brand. In terms of geographical reach, we seek to expand in Vietnam, India, and in the DACH region in Europe.

We also want to further leverage our R&D capabilities and are ultimately targeting 4 billion yen in sales in fiscal year 2029.

In terms of our production system, construction of our Smart Factory was completed in January 2025. We position the Smart Factory as the mother factory and the Vietnam Factory as our mass production base. In summary, we will establish a two-base production system.

Mass production of ophthalmic knives is scheduled for 2026, and for JIZAI and our vitreous forceps in 2027.

Lastly, we will be establishing a new factory in China, primarily to respond to the trend toward domestic production. Production is scheduled to start in 2028.

China's State Council recently announced clear directives concerning requirements to have local production bases in China, so these are now really starting to become increasingly strict. MANI will follow these requirements in the Chinese market, starting with the product category of ophthalmic knives, and this is the rationale behind this new planned factory in the country.

Now, I would now like to give you an overview of the Fiscal Year 2029 Mid-Term Plan. The vertical bar chart chronicles MANI's sales over time since the company's founding. One of our competitive advantages is the fact that we are a company with very strong R&D capabilities, which have allowed us to build up core technologies consisting of proprietary materials and advanced microfabrication technology. We also have the requisite infrastructure and capability to manufacture these products.

Second, over the course of selling our products, we have developed a very robust global customer base consisting of an extensive number of sales partners, B-to-B customers, and medical institutions in both the dental and ophthalmic fields. Going forward, we will be further leveraging these two key advantages to drive growth.

2026 marks our 70th anniversary. MANI aspires to become a century-old company, so the process of formulating the new Mid-Term Plan involved working backwards from this goal to determine the company's ideal growth trajectory going forward.

Specifically, our vision is to "become a trusted company that provides outstanding products and solves issues in medical practice."

That said, what will not change is our "commitment to being the Best in the World," our "Global niche top strategy and trade-off management," and our efforts to "Achieve high profitability."

Lastly, we have identified three areas we need to change. First is our product-out strategy. Here, we need not just to offer the best quality but also to solve issues in medical practice together with doctors. Second, we are transitioning from a 100% in-house principle to using strategic alliances and M&A to improve business speed. Third, we will further enhance our global management efforts.

In summary, we have identified areas we won't be changing and areas that would benefit from changes.

Allow me to flesh out our approach in greater detail. Broadly speaking, our intended trajectory is going from a "niche company specialized in R&D" to a "true global company." To achieve this, we will be enhancing our strengths, unlocking the full potential of MANI's success model.

We will be doing this both on the product front, as well as in terms of regional expansion.

Second, we will be creating new value by becoming a partner to solve issues in medical practice. Within this, we will work to gain a deeper insight into clinical applications and solve our clients' issues in medical practice. In the technical domain, we specialized in the technical process of shaping and coating the wiring used in these instruments, and we now seek to broaden our scope into other areas.

In summary, ambidextrous management is our target here, and this requires co-creation efforts with our clients and partners, and strategic investment.

Here is a breakdown of this strategy for each business domain. On the product front, we have listed existing and planned products across our three core segments. Note our blockbuster products highlighted in yellow: ophthalmic knives, eyeless needles, dia-burs, and hand files; and which have driven MANI's growth over time.

The section in the center shows the product lines we will be adding to our portfolio over the course of the new Mid-Term Plan through Fiscal Year 2029. Then, further to the right are our plans for the full-scale start from fiscal year 2029 of new R&D and business operation efforts. In summary, we want to expand MANI's product lineup.

The column on the right-hand side details the various ways we will contribute to solving issues in medical practice.

In the ophthalmic category, we will provide our unique MANI value with global niche top products.

In the domain of surgery, we believe we can explore further businesses leveraging our technologies in this area.

In terms of eyeless needles, we can establish win-win relationships with suture manufacturers and also focus on robotic surgery-which is expected to grow as a field going forward.

Lastly, in the dental segment, we aim to become the leading player in endodontic treatment. In summary, we have a two-pronged strategy to offer new value.