Consolidated Financial Results for the First Quarter of Fiscal Year 2025

July 24, 2025

Company name: MARUWA CO., LTD.

Listing: Tokyo Stock Exchange / Nagoya Stock Exchange

Securities code: 5344

URL: https://www.maruwa-g.com/

Representative: Toshiro Kambe, Representative Director and President

Inquiries: Daisuke Yamaguchi, Director and Head of Administration Division Telephone: +81-561-51-0841

Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for institutional investors and analysts)

Rounded down to the nearest million yen

1. Consolidated financial results for the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      June 30, 2025	17,256	6.2	6,002	6.4	5,722	(7.4)	3,878	(13.9)
      June 30, 2024	16,243	27.7	5,640	59.8	6,181	49.1	4,502	58.2

      Note: Comprehensive income For the three months ended June 30, 2025:	¥4,205 million	[(21.3)%]
      For the three months ended June 30, 2024:	¥5,343 million	[63.9%]

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      June 30, 2025	314.31	-
      June 30, 2024	364.96	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio
   As of	Millions of yen	Millions of yen	%
   June 30, 2025	141,281	131,474	93.1
   March 31, 2025	142,285	127,854	89.9

   Reference: Equity

   As of June 30, 2025: ¥131,474 million

   As of March 31, 2025: ¥127,854 million

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended March 31, 2025	-	47.00	-	47.00	94.00
   Fiscal year ending March 31, 2026	-
   Fiscal year ending March 31, 2026 (Forecast)		51.00		51.00	102.00

   Note: Revisions to the forecast of cash dividends most recently announced: None

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

Note: Revisions to the earnings forecasts most recently announced: None

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

2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None

3. 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

4. Number of issued shares (common shares)

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

      As of June 30, 2025	12,372,000 shares
      As of March 31, 2025	12,372,000 shares

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

      As of June 30, 2025	33,264 shares
      As of March 31, 2025	32,112 shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm:nothing

• Proper use of earnings forecasts, and other special matters

(Cautions on forward-looking statements, etc.)

The forward-looking statements, including forecasts of financial results, contained in these materials are based on information available to the Company and on certain assumptions deemed to be reasonable. Actual financial results may differ from the results anticipated in the statements due to various factors.

1. Overview of Operating Results, etc.

1. Business Results

   During the first quarter of the fiscal year ending March 31, 2026 (April 1 to June 30, 2025), concerns over geopolitical risks persisted due to ongoing developments in the Middle East and Ukraine, as well as the global focus on tariff policies involving the United States and other countries. In the high-tech market, rapid technological advancements and active investments were observed across a wide range of fields related to generative AI.

   Working within this business environment, in the semiconductor-related business, demand for general-purpose memory remain weak, while the tele-communication related business benefited from strong performance in next-generation high-speed communications.

   As a result, consolidated net sales for the first quarter of the fiscal year ending March 31, 2026 increased by 6.2% year on year to 17,256 million yen, and operating profit rose by 6.4% year on year to 6,002 million yen. These figures represent the highest first-quarter results. Ordinary profit decreased by 7.4% year on year to 5,722 million yen, due to the absence of the foreign exchange gains recorded in the same period of the previous year amid a sharp depreciation of the yen. Net profit attributable to owners of the parent decreased by 13.9% year on year to 3,878 million yen.

   Sales and profits by segment are as follows. (Ceramic Components Business)

   In the semiconductor-related business, demand for general-purpose memories weakened, but in the tele-communication related

   business, performance for next-generation, high-speed communications expanded.

   As a result, net sales for the first quarter of the fiscal year ending March 31, 2026, under review increased by 6.5% year on year to 15,248 million yen, and segment profit rose by 4.4% year on year to 6,064 million yen.

   (Lighting Equipment Business)

   This segment saw steady performance driven by demand for lighting equipment for high-end new condominiums and public LED lighting installation projects, supported by Japan's upcoming policy to phase out fluorescent lamp production by 2027.

   As a result, net sales for the first quarter of the fiscal year ending March 31, 2026, decreased by 4.4% year on year to 2,007 million yen, while segment profit fell by 70.1% year on year to 336 million yen.

2. Financial Conditions (Assets)

   Current assets at the end of the first quarter of the fiscal year ending March 31, 2026, totaled 95,688 million yen, a decrease of 4,601 million yen from the end of the previous fiscal year, primarily due to a reduction in cash and deposits. Non-current assets increased by 3,597 million yen to 45,592 million yen, mainly due to an increase in property, plant and equipment.

   As a result, total assets amounted to 141,281 million yen, a decrease of 1,003 million yen from the end of the previous fiscal year.

   (Liabilities)

   Current liabilities at the end of the first quarter of the fiscal year ending March 31, 2026, decreased by 4,616 million yen to 9,316 million yen, mainly due to a decline in income taxes payable resulting from tax payments. Non-current liabilities decreased by 7 million yen to 490 million yen.

   As a result, total liabilities decreased by 4,624 million yen to 9,806 million yen.

   (Net Assets)

   Net assets at the end of the first quarter of the fiscal year ending March 31, 2026, increased by 3,620 million yen to 131,474 million yen, primarily due to the recording of 3,878 million yen in quarterly net profit attributable to owners of the parent.

   As a result, the equity ratio was 93.1% (89.9% at the end of the previous fiscal year).

3. Future Outlook

Although the economic outlook continues to be uncertain, there is no change to the consolidated earnings forecast for the fiscal year ending March 31, 2026, as announced on April 25, 2025.

Current outlook by segment is as follows.

In the semiconductor related business, in addition to increasing demand for generative AI applications, demand for general-purpose memory is gradually recovering. Furthermore, differentiated high-purity SiC products for SPE are expected to see growing demand in the second half of the fiscal year.

In the tele communication related business, strong demand for next-generation high-speed communication is expected to continue. In the automobile related business, inventory adjustments are underway on the customer side, particularly for new energy vehicle. We expect a recovery in the second half of the fiscal year, we will continue to closely monitor market trends due to ongoing uncertainties such as geopolitical risks. In addition, we aim to enhance profitability through the implementation of AI and robotics in our factory operations.

In the industrial equipment related business, demand for power modules is expected to be soft, but new medical-related products are projected to contribute to performance.

In the lighting equipment related business, lighting for high-end condominiums and business for public LED installations projects are expected to maintain steady performance.

On the earnings front, we will continue to enhance profitability through further factory automation and improved yields on new products. Regarding profit figures below ordinary profit, it is difficult to provide forecasts at this time due to the potential volatility caused mainly by exchange rate fluctuations.

Despite the current global uncertainty surrounding geopolitical risks and the economic environment, we remain committed to proactive development in ceramic materials and new products, as well as market expansion in pursuit of our medium-term goals, and we will continue to strengthen our business foundations accordingly.

Non-current assets

Property, plant and equipment