MATSUDA SANGYO : Financial Results (Q2 / FY2026)

November 12, 2025

Company name: Matsuda Sangyo Co., Ltd.

Stock exchange listings: Tokyo Stock Exchange (Prime Market)

Stock code: 7456

URL: https://www.matsuda-sangyo.co.jp

Representative: Yoshiaki Matsuda, President and Representative Director

Contact: Yoshinori Tanaka, Director, CSR & IR Department General Manager

TEL: +81-3-5381-0728

Scheduled date for submission of interim report: November 13, 2025 Supplementary materials for financial summaries: Yes

Financial results briefing: Yes (Live stream of results briefing for institutional investors scheduled for November 26, 2025)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Six Months of the Fiscal Year Ending March 31, 2026 (from April 01, 2025 to September 30, 2025)
   1. Consolidated operating results (Cumulative) (Percentages indicate YoY changes)

      	Revenue		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Six months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      September 30, 2025	288,248	29.7	8,061	28.4	8,441	28.3	6,087	31.7
      September 30, 2024	222,170	24.3	6,278	23.5	6,580	12.0	4,622	13.8

      (Note) Comprehensive income For the six months ended March 31, 2026: 3,964 million yen ((34.9)%) For the six months ended March 31, 2025: 6,085 million yen (16.4%)

      	Basic earnings per share	Diluted earnings per share
      Six months ended	Yen	Yen
      September 30, 2025	235.04	-
      September 30, 2024	178.34	-

   2. Consolidated financial positions

   	Total assets	Net assets	Equity to total assets ratio
   As of	Million yen	Million yen	%
   September 30, 2025	182,700	102,769	56.0
   March 31, 2025	168,900	100,134	59.1

   (Reference) Owner's equity As of the six months ended March 31, 2026: 102,261 million yen As of the fiscal year ended March 31, 2025: 99,742 million yen

2. Cash dividends

   	Annual dividends per share
   	End of first quarter	End of second quarter	At the end of the third quarter	Fiscal year-end	Total
   Fiscal year ended March 31, 2025 Fiscal year ending March 31, 2026	Yen	Yen	Yen	Yen	Yen
   	- -	35.00 50.00	-	40.00	75.00
   Fiscal year ending March 31, 2026 (Forecast)			-	50.00	100.00

   (Note) Presence or absence of revisions from the most recently announced dividend forecast: None

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2026 (from April 01, 2025 to March 31, 2026)

(Percentages indicate YoY changes)

(Note) Revisions to the forecast of consolidated earnings most recently announced: None

* Notes

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

2. Application of accounting treatment specific to the preparation of interim consolidated financial statements

   : None

3. Changes in accounting policies, changes in accounting estimates, retrospective restatement

   1. Changes in accounting policies based on revisions of accounting standard

      : None

   2. Changes in accounting policies other than (i) above : None

   3. Changes in accounting estimates : None

   4. Retrospective restatement : None

4. Number of shares issued (common stock)

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

      As of September 30, 2025	26,908,581 shares
      As of March 31, 2025	26,908,581 shares

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

      As of September 30, 2025	1,066,665 shares
      As of March 31, 2025	991,453 shares

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

      Six months ended September 30, 2025	25,899,883 shares
      Six months ended September 30, 2024	25,917,238 shares

      ※We have introduced a stock-based compensation plan, "Executive Compensation BIP Trust" from the current interim consolidated accounting period. The number of treasury stock at the period end includes shares of the Company held by the Executive Compensation BIP Trust (75,200 shares for the six months ended March 31, 2026; - shares for the fiscal year ended March 31, 2025). In addition, shares of the Company held by the Executive Compensation BIP Trust are included in the number of treasury shares deducted in the calculation of the average number of shares.

      • The second quarter (interim) financial results report is not subject to review by certified public accountants or audit firms.

      • Notes regarding the appropriate use of forecasts and other special items

The forward-looking statements such as earnings forecasts contained in this document are based on information currently available to the Company and on certain assumptions deemed reasonable. They are not intended as a guarantee of achievement by the Company. Actual results may differ significantly due to various factors. For details regarding the preamble to forecasts, please refer to page 3 of the attached materials, "1. Qualitative information regarding the interim financial results (3) Explanation regarding forward-looking statements such as consolidated forecasts."

Table of Contents for Attached Document

1. Qualitative information regarding the interim financial results 2

   1. Explanation of operating results 2

   2. Explanation regarding financial positions 3

   3. Explanation regarding forward-looking statements such as consolidated forecasts 3

2. Interim Consolidated Financial Statements and Main Notes 4

   1. Interim Consolidated Balance Sheet 4

   2. Interim Consolidated Statement of Income and Interim Consolidated Statement of Comprehensive Income 6

   3. Interim Consolidated Statement of Cash Flows 8

   4. Notes to the Interim Consolidated Financial Statements 9

(Notes regarding the assumption of a going concern) 9

(Notes in case of significant changes in the amount of shareholders' equity) 9

(Segment Information, etc.) 9

(Significant Subsequent Events) 9

1. Qualitative information regarding the interim financial results

   1. Explanation of operating results

      During the interim of the cumulative consolidated fiscal year ending March 31, 2026, the Japanese economy experienced a moderate recovery in employment and income conditions. However, global economic uncertainty persisted due to developments in U.S. trade policy and heightened geopolitical risks. Domestically, the outlook remained uncertain, as continued price increases led to sluggish growth in personal consumption.

      Under these circumstances, in our group's precious metals business segment, we worked to differentiate ourselves through comprehensive resource recycling capabilities and the development of high-performance electronic materials. We also focused on establishing and expanding production bases both domestically and internationally, securing precious metal raw materials, expanding product sales, and increasing contracts for industrial waste treatment. In the food business segment, we leveraged our globally developed procurement capabilities to expand sales volume by developing merchandise that meets customer needs and ensuring the stable supply of safe and reliable merchandise.

      As a result of the above, for the semi-annual consolidated financial period, net sales were 288,248 million yen (up 29.7% YoY), operating profit was 8,061 million yen (up 28.4% YoY), ordinary profit was 8,441 million yen (up 28.3% YoY), and semi-annual profit attributable to owners of parent was 6,087 million yen (up 31.7% YoY).

      The overview of each segment is as follows.

      Precious Metals Business Segment

      In the electronic device sector of the electronics industry, which is our main customer for this business, demand for AI servers and data centers continued to expand and remained strong. On the other hand, production for the automotive sector saw only a moderate recovery in the production of semiconductors and electronic components, as EV production growth stagnated.

      Under these circumstances, in our business, in addition to efforts to increase the volume of precious metal recycling, including the jewelry sector, the rise in precious metal prices provided a tailwind, resulting in an increase in net sales and operating profit compared to the same period of the previous year.

      As a result, net sales for this business were 227,713 million yen (up 34.8% YoY), and operating profit was 6,319 million yen (up 28.1% YoY).

      Food Business Segment

      The food manufacturing industry, which is our main customer for this business, has been affected by rising prices of raw materials and other costs. As a result, consumers remain cautious in their purchasing behavior, and the tendency toward frugality in personal consumption continues.

      Under these circumstances, in our business, as a result of making merchandise proposals that accurately responded to diversifying needs and striving for stable supply, although sales volume of marine products decreased, sales volumes of livestock and agricultural products increased, and sales prices also rose. As a result, net sales and operating profit increased compared to the same period of the previous year.

      As a result of the above, net sales for this business were 60,556 million yen (up 13.6% YoY), and operating profit was 1,742 million yen (up 29.6% YoY).

   2. Explanation regarding financial positions

      1. Status of Assets, Liabilities, and Net Assets ( Assets)

         At the end of the interim consolidated accounting period, total assets increased by 13,800 million yen compared to the end of the previous consolidated fiscal year, reaching 182,700 million yen. This was mainly due to increases in notes and accounts receivable - trade, inventories, and property, plant and equipment.

         ( Liabilities)

         At the end of the interim consolidated accounting period, total liabilities increased by 11,164 million yen compared to the end of the previous consolidated fiscal year, reaching 79,930 million yen. This was mainly reflected the difference between the net effect of increases in accounts payable - trade, advances received, and long-term borrowings, and a decrease in short-term borrowings.

         ( Net assets)

         Net assets as of the end of the first end of the semi-annual consolidated financial period under review were 2,635 million yen compared to the end of the previous fiscal year, reaching 102,769 million yen. This was mainly reflected the difference between the net effect of an increase in retained earnings and a decrease in deferred gains or losses on hedges.

      2. Cash flows

         Cash and cash equivalents (hereinafter referred to as "funds") at the end of the six months ended September 30, 2025 increased by 2,231 million yen compared to the end of the previous fiscal year, amounting to 13,660 million yen.

         (Cash flows from operating activities)

         Operating activities in the semi-annual consolidated financial period under review provided cash of 3,691 million yen. This was mainly due to an increase in funds from income before income taxes, depreciation, and an increase in accounts payable, offset by a decrease in funds resulting from increases in accounts receivable, inventories, and payment of income taxes. Compared to the increase of 2,450 million yen in the same period of the previous year, this represents an increase of 1,241 million yen.

         (Cash flows from investing activities)

         Investing activities in the semi-annual consolidated financial period under review used cash of 2,513 million yen. This was mainly due to the acquisition of property, plant and equipment such the new installation of factory equipment. Compared to the expenditure of 2,408 million yen in the same period of the previous year, this represents an increase of 105 million yen.

         (Cash flows from financing activities)

         Financing activities in the semi-annual consolidated financial period under review provided cash of 1,374 million yen. This was mainly due to an increase in funds from long-term borrowings, offset by a decrease in funds from the repayment of short-term borrowings and the payment of dividends. Compared to a decrease of 1,160 million yen in the same period of the previous year, this represents an increase of 2,534 million yen.

   3. Explanation regarding forward-looking statements such as consolidated forecasts

   Regarding the full-year forecasts, please refer to the "Notice Concerning Revisions to Consolidated Earnings Forecasts and Dividends Forecasts" announced on November 4, 2025.

2. Interim Consolidated Financial Statements and Main Notes

1. Interim Consolidated Balance Sheet

   (Unit: Million yen)

   As of March 31, 2025 As of September 30, 2025

   Assets

   Current assets

   Cash and deposit	12,878	14,509
   Notes and trade receivables	34,088	38,973
   Merchandise and finished goods	34,344	35,319
   Work in process	999	716
   Raw materials and supplies	25,610	28,084
   Accounts receivable - other	1,413	2,220
   Other	6,802	7,407
   Allowance for doubtful accounts	(14)	(9)
   Total current asset	116,124	127,223
   Non-current assets
   Property, plant, and equipment
   Buildings and structures	21,120	20,959
   Accumulated depreciation	(8,242)	(8,404)
   Buildings and structures, net	12,878	12,555
   Machinery, equipment and vehicles	20,299	20,638
   Accumulated depreciation	(15,407)	(15,863)
   Machinery, equipment and vehicles, net	4,892	4,775
   Land	17,027	16,989
   Leased assets	1,637	1,709
   Accumulated depreciation	(979)	(1,065)
   Leased assets, net	658	644
   Construction in progress	2,079	3,756
   Other	1,927	1,778
   Accumulated depreciation	(1,605)	(1,426)
   Other (net)	322	352
   Total property, plant and equipment, net	37,858	39,073
   Intangible assets
   Other	3,028	2,968
   Total intangible assets	3,028	2,968
   Investment Other assets
   Investment securities	7,894	8,624
   Deferred tax assets	445	1,534
   Other	3,619	3,355
   Accumulated depreciation	(49)	(59)
   Other (net)	3,569	3,296
   Allowance for doubtful accounts	(20)	(20)
   Total investment and other assets	11,889	13,435
   Total non-current assets	52,775	55,476
   Total assets	168,900	182,700

   (Unit: Million yen)

   As of March 31, 2025 As of September 30, 2025

   Liabilities

   Current liabilities

   Trade payables	16,176	18,867
   Short-term borrowings	11,542	7,102
   Current portion of long-term borrowings	4,108	5,360
   Lease liabilities	228	279
   Income taxes payable	2,796	2,469
   Provision for bonuses	1,238	1,633
   Accounts payable	994	1,702
   Advances from customers	7,666	9,645
   Other	3,860	6,339
   Total current liabilities	48,613	53,401
   Non-current liabilities
   Bonds payable	100	100
   Long-term borrowings	17,047	23,297
   Lease liabilities	446	380
   Deferred tax liabilities	62	6
   Provisions for retirement benefits for directors	795	-
   Executive Officer Retirement Benefits Provisions	30	-
   Provision for share awards for directors	-	13
   Liabilities for retirement benefits	1,510	1,485
   Other	159	1,247
   Total non-current liabilities	20,152	26,529
   Total liabilities	68,765	79,930
   Net assets
   Shareholders' equity
   Share capital	3,559	3,559
   Capital surplus	4,008	4,008
   Retained earnings	89,565	94,616
   Treasury shares	(1,396)	(1,688)
   Total shareholders' equity	95,737	100,495
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	818	1,120
   Deferred gains or losses on hedges	(900)	(2,932)
   Foreign currency translation adjustment	3,960	3,460
   Remeasurements of defined benefit plans	125	117
   Total accumulated other comprehensive income	4,005	1,766
   Non-controlling interests	391	507
   Total net assets	100,134	102,769
   Total liabilities and net assets	168,900	182,700

2. Interim Consolidated Statement of Income and Interim Consolidated Statement of Comprehensive Income

   Interim Consolidated Statement of Income

   (Unit: Million yen)

   	For the six months ended	For the six months ended
   	September 30, 2024	September 30, 2025
   Revenue	222,170	288,248
   Cost of sales	204,836	267,511
   Gross profit	17,333	20,736
   Selling, general and administrative expenses	11,055	12,674
   Operating profit	6,278	8,061
   Non-operating income
   Interest income	7	9
   Dividend income Share of income of investments accounted for using	21 548	25 626
   the equity method Other	88	100
   Total non-operating income	665	761
   Non-operating expenses
   Interest expense	156	240
   Foreign exchange losses	178	88
   Other	27	52
   Total non-operating expenses	362	381
   Ordinary profit	6,580	8,441
   Net income before income taxes	6,580	8,441
   Income taxes - current	2,124	2,535
   Income taxes - deferred	(162)	(328)
   Total income taxes	1,961	2,206
   Net income	4,618	6,235
   Net income (loss) attributable to non-controlling interests	(3)	147
   Profit attributable to owners of parent	4,622	6,087

   Interim Consolidated Statement of Comprehensive Income

   For the six months ended September 30, 2024

   (Unit: Million yen)

   For the six months ended September 30, 2025

   Net income	4,618	6,235
   Other comprehensive income (loss), net of tax
   Valuation difference on available-for-sale securities	52	301
   Deferred gains or losses on hedges	385	(2,043)
   Foreign currency translation adjustment	942	(498)
   Remeasurements of defined benefit plans, net of tax Share of profit (loss) of entities accounted for using	123 (38)	(12) (18)
   equity method Other comprehensive income, net of tax	1,466	(2,271)
   Comprehensive income	6,085	3,964
   Comprehensive income attributable to
   Interim comprehensive income attributable to owners 6,071 3,848 of the parent

   Interim comprehensive income attributable to non-controlling interests

   13 115

3. Interim Consolidated Statement of Cash Flows

   For the six months ended September 30, 2024

   (Unit: Million yen)

   For the six months ended September 30, 2025

   Cash flows from operating activities

   Net income before income taxes 6,580 8,441

   Depreciation 1,333 1,717

Increase (decrease) in allowance for doubtful accounts (0) (5)

Increase (decrease) in liabilities for retirement

benefits

135 (48)

Increase (decrease) in provision for directors'

retirement benefits (- indicates decrease)

(16)

(1)

Increase (decrease) in executive officer retirement

Increase (decrease) in provision for share awards for

directors (- indicates decrease)

-

13

benefit provisions (- indicates decrease) 3 1

Interest income and dividends income (28) (35)

Share of loss (profit) of investments accounted for using the equity method

(548) (626)

(Increase) decrease in inventories (5,610) (3,465)

Increase (decrease) in accounts receivable (- indicates increase)

48 (808)

Increase (decrease) in accounts payable (negative

indicates decrease)

(33)

984

Increase (decrease) in trade payables 1,044 2,870

Subtotal 2,910 6,344

Other (1,297) 1,761

Interest paid (80) (158)

Interest and dividends received 284 362

Cash flows from operating activities 2,450 3,691

Income taxes paid (663) (2,856)

Proceeds from withdrawal of time deposits - 880

Cash flows from investing activities

Purchase of intangible assets (327) (392)

Purchase of property and equipment (2,024) (2,899)

Cash flows from investing activities (2,408) (2,513)

Other (57) (102)

Net increase (decrease) in short-term borrowings (8,500) (4,687)

Cash flows from financing activities

Repayment of long-term borrowings (1,858) (2,498)

Proceeds from long-term borrowings 10,100 10,000

Acquisition of treasury shares (0) (292)

Cash dividends paid (777) (1,036)

Cash flows from financing activities (1,160) 1,374

Other (124) (111)

Increase (decrease) in cash and cash equivalents (713) 2,231

Effect of exchange rate change on cash and cash equivalents

405 (320)

Cash and cash equivalents at the beginning of the period 14,449 11,428

Cash and cash equivalents at the end of the interim period

13,735

13,660

1. Notes to the interim consolidated financial statements

(Notes regarding the assumption of a going concern) There are no applicable items.

(Notes in case of significant changes in the amount of shareholders' equity) There are no applicable items.

(Segment Information, etc.)

I For the six months ended September 30, 2024

Information on net sales and profit or loss by reportable segment

(Unit: Million yen)

(Note) 1 The adjustment amount consists of the elimination of inter-segment transactions and transfers.

2. The total amount of segment profit is consistent with operating profit in the interim consolidated statement of income. II For the six months ended September 30, 2025

Information for Net sales and profit or loss by reportable segment

(Unit: Million yen)

(Note) 1 The adjustment consists of the elimination of inter-segment transactions and transfers.

2. The total amount of segment profit is consistent with operating profit in the interim consolidated statement of income.

(Significant Subsequent Events) There are no applicable items.