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

May 8, 2026

Company name: Okamura Corporation Listing: Tokyo Stock Exchange Securities code: 7994

URL: https://www.okamura.com/

Representative: Masayuki Nakamura, Representative Director, President and Chief Executive Officer Inquiries: Sakae Fukuda, Director and Executive Officer, Senior General Manager, Accounting and

Finance Division, CFO

Telephone: +81-(0)45-319-3445

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 22, 2026 Preparation of supplementary material on financial results: Prepared

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

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Operating Results for the Fiscal Year Ended March 31, 2026 (From April 1, 2025 to March 31, 2026)
   1. Operating Results (Percentages indicate year-over-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 329,031 314,527	% 4.6 5.4	Millions of yen 24,144 23,935	% 0.9 (0.4)	Millions of yen 25,839 26,459	% (2.3) 0.9	Millions of yen 22,416 22,045	% 1.7 8.7

      Note: Comprehensive income	For the fiscal year ended March 31, 2026:	¥28,805 million	[35.9%]
      	For the fiscal year ended March 31, 2025:	¥21,193 million	[(27.7)%]

      	Basic earnings per share	Diluted earnings per share	Return on equity	Return on assets	Ratio of operating profit to net sales
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2026	236.80	-	11.5	8.7	7.3
      March 31, 2025	232.93	-	12.3	9.3	7.6

      Reference: Share of profit (loss) of entities accounted for using equity method For the fiscal year ended March 31, 2026: ¥878 million For the fiscal year ended March 31, 2025: ¥1,399 million

   2. Financial Positions

      	Total assets	Net assets	Equity ratio	Net assets per share
      As of March 31, 2026 March 31, 2025	Millions of yen 301,877 289,144	Millions of yen 206,089 186,795	% 67.6 64.0	Yen 2,156.14 1,956.33

      Reference: Total equity

      As of March 31, 2026: ¥204,129 million As of March 31, 2025: ¥185,143 million

   3. 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 27,218 983	Millions of yen (5,359) (14,270)	Millions of yen (16,159) (209)	Millions of yen 31,861 25,410

2. Dividend

   	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 8,914 9,866	%	%
   Fiscal year ended March 31, 2025	-	45.00	-	49.00	94.00		40.4	4.9
   Fiscal year ended March 31, 2026	-	52.00	-	52.00	104.00		43.9	5.0
   Fiscal year ending March 31, 2027 (Forecast)	-	52.50	-	52.50	105.00		47.1

3. Forecast of Consolidated Performance for the Fiscal Year Ending March 31, 2027 (From April 1, 2026 to March 31, 2027)

(Percentages indicate year-over-year changes.)

1. Significant changes in the scope of consolidation during the period: Yes Newly included: 1 company (Boss Design Limited)

   Excluded: -

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 stock)

      March 31, 2026	100,621,021 shares
      March 31, 2025	100,621,021 shares

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

      March 31, 2026	5,947,462 shares
      March 31, 2025	5,983,190 shares

   3. Average number of shares outstanding during the period

1. Non-Consolidated Operating Results for the Fiscal Year Ended March 31, 2026 (From April 1, 2025 to March 31, 2026)
   1. Operating Results (Percentages indicate year-over-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit
      Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      March 31, 2026	285,536	2.3	21,742	(8.4)	24,412	(4.6)	22,516	4.5
      March 31, 2025	279,122	5.6	23,735	6.0	25,596	4.6	21,538	10.6

      	Basic earnings per share	Diluted earnings per share
      Fiscal year ended	Yen	Yen
      March 31, 2026	237.38	-
      March 31, 2025	227.12	-

   2. Financial Positions

   	Total assets	Net assets	Equity ratio	Net assets per share
   As of March 31, 2026 March 31, 2025	Millions of yen 269,285 259,973	Millions of yen 185,566 168,693	% 68.9 64.9	Yen 1,956.07 1,778.79

   Reference: Total equity

   March 31, 2026: ¥185,566 million

   March 31, 2025: ¥168,693 million

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

   • Proper use of earnings forecasts and other special matters

   The performance forecasts and other forward-looking statements contained herein are based on the information available to the Company at the time, and contain certain assumptions that the Company considers to be reasonable. They are subject to diverse factors that may cause actual results of operations and other items to differ significantly from the statements and forecasts. For a description of the assumptions underlying the performance forecasts and the points to note when using the performance forecasts in this document, etc., please refer to (4) Future Outlook in 1. Overview of Operating Results, etc. on page 5 of the Attachments to this Financial Results summary.

   Table of Contents - Attachments

   1. Overview of Operating Results, etc. 2

      1. Overview of Operating Results for the Fiscal Year under Review 2

      2. Overview of Financial Position for the Fiscal Year under Review 4

      3. Overview of Cash Flows for the Fiscal Year under Review 5

      4. Future Outlook 5

   2. Management Policy 8

      1. Basic policy on Management of the Company 8

      2. Corporate Management Strategies for the Medium and Long Term 8

      3. Basic Policy on the Distribution of Profits and Dividends for the Fiscal Year under Review and the Next Fiscal Year 8

   3. Basic Policy on Selection of Accounting Standards 9

   4. Consolidated Financial Statements and Principal Notes 10

      1. Consolidated Balance Sheets 10

      2. Consolidated Statements of Income and Comprehensive Income 12

      3. Consolidated Statements of Changes in Equity 14

      4. Consolidated Statements of Cash Flows 16

      5. Notes to Consolidated Financial Statements 18

         (Notes on going concern assumption) 18

         (Important matters that form a basis for the preparation of the consolidated financial statements) 18

         (Changes in presentation) 19

         (Changes in scope of consolidation) 19

         (Consolidated balance sheets) 19

         (Consolidated statements of income) 21

         (Consolidated statements of changes in equity) 22

         (Consolidated statements of cash flows) 25

         (Segment information, etc.) 25

         (Business combinations) 29

         (Per share information) 31

         (Significant subsequent events) 32

   5. Non-Consolidated Financial Statements 34

      1. Non-Consolidated Balance Sheets 34

      2. Non-Consolidated Statements of Income 36

      3. Non-Consolidated Statements of Changes in Equity 37

   1. Overview of Operating Results, etc.

      1. Overview of Operating Results for the Fiscal Year under Review

         1. Overall results

            Category	Net sales (Millions of yen)	Operating profit (Millions of yen)	Ordinary profit (Millions of yen)	Profit attributable to owners of parent (Millions of yen)	Basic earnings per share (Yen)	ROE (%)
            Fiscal year ended March 31, 2026	329,031	24,144	25,839	22,416	236.80	11.5
            Fiscal year ended March 31, 2025	314,527	23,935	26,459	22,045	232.93	12.3

            At the Okamura Group (the "Group"), our mission is to "Contribute to society by creating environments where people can thrive with rich ideas and reliable quality." Under this mission, we aim to realize a society in which all people can work and live with vitality and smiles in line with our purpose of "Realizing a society where people can thrive."

            During the fiscal year ended March 31, 2026 (the fiscal year under review), the outlook for the Japanese domestic economy remained clouded due to the impact of overseas factors, including geopolitical risk surrounding the situations in Ukraine and the Middle East, the prolonged slowdown of the Chinese economy, and the implementation of reciprocal tariffs by the U.S. In addition, financing costs increased due to the raising of the policy interest rate by the Bank of Japan, and the prices of materials and logistics costs continued to soar, making measures to address inflation, such as price pass-ons and wage increases, key management issues.

            In the Company's businesses, while demand for domestic office renewals and store renovations remained steady, the cost of sales and SG&A expenses increased due to the impact of rising purchase prices and wage increases.

            Under these conditions, the Group focused on development and sales activities that captured changes in society and the market, creating new demand, and reducing costs.

            During the fiscal year under review, the Group implemented a wage increase of 5.48% and raised the starting salary for university graduates to 300,000 yen in order to respond to rising prices and intensifying competition for securing human resources. The Group has been striving to enhance its corporate value by linking these efforts to securing excellent human resources and promoting employee engagement improvement.

            As a result, for the fiscal year under review, the Group recorded net sales of 329,031 million yen (up 4.6% year-over-year), operating profit of 24,144 million yen (up 0.9% year-over-year), ordinary profit of 25,839 million yen (down 2.3% year-over-year), and profit attributable to owners of parent of 22,416 million yen (up 1.7% year-over-year). The highest figures were recorded for net sales, operating profit, and profit.

            Return on equity (ROE) was 11.5% (down 0.8 percentage points year-over-year), return on assets (ROA) was 8.7% (down 0.5 percentage points year-over-year), and the ratio of operating profit to net sales was 7.3% (down 0.3 percentage points year-over-year).

            Furthermore, the Company resolved to acquire shares of Boss Design Limited (headquartered in the United Kingdom) on March 24, 2025, and acquired 100% of its issued shares, making it a wholly owned subsidiary on April 1, 2025.

         2. Results in each segment

         Management's assessment of the status of operating results in each segment and its analysis and discussion are presented below.

         Segment name	Net sales (Millions of yen)			Segment profit (loss) (Millions of yen)
         	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026	Change	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026	Change
         Office Furniture business	167,397	191,852	24,454	17,367	22,630	5,262
         Store Displays business	118,305	116,171	(2,134)	4,792	2,798	(1,993)
         Material Handling Systems business	22,599	14,702	(7,896)	1,619	(1,467)	(3,086)
         Others	6,224	6,304	80	156	182	25
         Total	314,527	329,031	14,504	23,935	24,144	208

         Note: The totals for segment profit (loss) correspond to operating profit on the consolidated statements of income.

         Office Furniture business

         In the Office Furniture business, following the COVID-19 pandemic, the importance of communication has been re-recognized across the market, along with flexible working styles that are not bound by time and location, and the wave of demand for open office design that promotes active communication is spreading. Additionally, as securing human resources has become a key issue for domestic companies, opportunities to choose office relocation and renovation are expanding as measures to resolve the issue, and interest in creating "The Office You Want To Go To" continues to remain strong. Under these circumstances, we have aimed to create new demand and boost net sales and operating profit by leveraging our strengths: the results of our research into future working styles, our proposal capabilities based on insights we have gained from our extensive delivery record, and our product development capabilities that anticipate changes in the times. Accordingly, both net sales and operating profit reached record highs.

         As a result, segment net sales amounted to 191,852 million yen (up 14.6% year-over-year) and segment profit was 22,630 million yen (up 30.3% year-over-year).

         Store Displays business

         In the Store Displays business, demand for labor savings and efficiency improvements in stores, as well as creating work environments where employees can work comfortably, has remained strong across all regions and business formats. In addition, solving social issues in the retail industry, such as environmental considerations, has become increasingly important in our proposals. Under these circumstances, we have aimed to expand net sales and operating profit by leveraging our strengths, including our extensive product lineup featuring display fixtures, refrigerated showcases and other products, integrated service functions from proposals to after-sales service, and design and R&D capabilities related to store creation, to work closely with customers to co-create solutions for various challenges faced by the retail industry, particularly in reducing environmental impact. However, both net sales and operating profit declined compared to the previous fiscal year due to factors including increased SG&A expenses associated with office relocation, in addition to increased fixed cost due to strengthening personnel and enhancing human resource development.

         As a result, segment net sales amounted to 116,171 million yen (down 1.8% year-over-year) and segment profit was 2,798 million yen (down 41.6% year-over-year).

         Material Handling Systems business

         In the Material Handling Systems business, demand for automation through material handling system equipment has remained strong, aimed at labor savings and efficiency improvements in logistics facilities, as well as reducing logistics costs through high-density storage and high-efficiency transport, against the backdrop of labor shortages. Under these circumstances, the Company launched "Optify," our first software product and a warehouse optimization system, and strengthened its framework as a comprehensive systems integrator in the logistics field during the fiscal year under review. We have continued research and development of differentiated products using advanced technologies and aimed to expand business scale and secure profits. However, as we recorded record-high net sales in the previous fiscal year, design engineer resources were concentrated on existing projects, which constrained activities to acquire new orders. As a result, orders received during the fiscal year under review decreased year-over-year, and both net sales and operating profit declined compared to the previous fiscal year.

         As a result, segment net sales amounted to 14,702 million yen (down 34.9% year-over-year) and segment loss was 1,467 million yen (compared to a segment profit of 1,619 million yen in the previous fiscal year).

      2. Overview of Financial Position for the Fiscal Year under Review

         	March 31, 2025	March 31, 2026
         Total assets (Millions of yen)	289,144	301,877
         Net assets (Millions of yen)	186,795	206,089
         Equity ratio (%)	64.0	67.6
         Net assets per share (Yen)	1,956.33	2,156.14

         The financial position as of March 31, 2026 (the end of the fiscal year under review) was as follows.

         Total assets amounted to 301,877 million yen, an increase of 12,732 million yen from the end of the previous fiscal year. Current assets increased by 6,871 million yen, mainly due to an increase in cash and deposits despite a decrease in notes and accounts receivable - trade, and contract assets. Non-current assets increased by 5,860 million yen, mainly due to increases in goodwill and other intangible assets despite decreases in buildings and structures and investment securities.

         Liabilities stood at 95,787 million yen, a decrease of 6,561 million yen from the end of the previous fiscal year, mainly due to decreases in retirement benefit liability, long-term borrowings, and short-term borrowings.

         Net assets amounted to 206,089 million yen, an increase of 19,293 million yen from the end of the previous fiscal year, mainly due to increases in retained earnings and valuation difference on available-for-sale securities.

         As a result, the equity ratio increased by 3.6 percentage points from the end of the previous fiscal year to 67.6%. Net assets per share increased from 1,956.33 yen at the end of the previous fiscal year to 2,156.14 yen.

      3. Overview of Cash Flows for the Fiscal Year under Review

         Category	Fiscal year ended March 31, 2025 (Millions of yen)	Fiscal year ended March 31, 2026 (Millions of yen)
         Cash flows from operating activities	983	27,218
         Cash flows from investing activities	(14,270)	(5,359)
         Cash flows from financing activities	(209)	(16,159)
         Cash and cash equivalents at end of period	25,410	31,861
         Balance of borrowings and bonds payable at end of period	35,839	30,026

         Cash flows for the fiscal year under review were as follows.

         Net cash provided by operating activities was 27,218 million yen (compared to 983 million yen provided in the previous fiscal year). This was mainly a result of profit before income taxes of 29,503 million yen and depreciation of 7,830 million yen, despite income taxes paid of 7,288 million yen and gain on sale of investment securities of 6,563 million yen.

         Net cash used in investing activities was 5,359 million yen (compared to 14,270 million yen used in the previous fiscal year). This was mainly a result of purchase of property, plant and equipment of 7,712 million yen and purchase of shares of subsidiaries resulting in change in scope of consolidation of 6,582 million yen, despite proceeds from sale and redemption of investment securities of 11,019 million yen.

         Net cash used in financing activities was 16,159 million yen (compared to 209 million yen used in the previous fiscal year). This was mainly a result of dividends paid of 9,567 million yen and repayment of long-term borrowings of 3,357 million yen.

         As a result, cash and cash equivalents at the end of the fiscal year under review amounted to 31,861 million yen, an increase of 6,450 million yen year-over-year.

         The balance of borrowings and bonds payable at the end of the fiscal year under review amounted to 30,026 million yen, a decrease of 5,813 million yen from the end of the previous fiscal year.

      4. Future Outlook

      The outlook for the Japanese economy is highly uncertain due to factors such as soaring raw material and energy prices and disruptions in material supply chains accompanying the destabilization of the situation in the Middle East, and the prolonged slowdown of the Chinese economy. In addition, increasing financing costs due to further interest rate hikes and continued wage increases are expected, making addressing the inflationary economy a key management issue.

      In this business environment, we aim to create new demand by capturing management issues and changes in the environment surrounding companies, such as changes in working styles due to the declining working population and the rapid spread of AI, as well as the need to address sustainability.

      The full-year financial results forecast is for consolidated net sales of 347,000 million yen, consolidated operating profit of 26,000 million yen, consolidated ordinary profit of 27,500 million yen, and profit attributable to owners of parent of 21,100 million yen.

      Status of each business

      In the mainstay Office Furniture business, companies have a strong desire to invest in their offices as a solution to management issues such as securing human resources and improving employee engagement, and demand for relocations and renovations is expected to remain strong nationwide.

      Under these conditions, we aim to create new demand and boost net sales and operating profit by leveraging our proposal capabilities based on insights we have gained from the research results into future working styles, one of our strengths, and our extensive delivery record, as well as our product development capabilities that capture changes in the times.

      In the Store Displays business, strong demand is expected to continue for personnel and labor savings at stores due to labor shortages, the utilization of digital technology, and the creation of employee-friendly work environments, regardless of region or business category. In addition, addressing social issues in the retail industry, such as reducing environmental impact and food waste, is becoming increasingly important in our proposals.

      Under these conditions, we aim to expand net sales and operating profit by further enhancing our strengths, which include our diverse product lineup featuring display fixtures and refrigerated showcases, our integrated service functions from proposals to after-sales service, and our design, research, and development framework for store creation, while working closely with our customers and co-creating solutions to address various issues faced by retailers.

      In the Material Handling Systems business, demand is expected to remain strong for personnel and labor savings due to a shortage of workers at logistics facilities, as well as for reducing logistics costs through high-density storage and high-efficiency transportation within warehouses.

      Under these conditions, we aim to improve our profit margin by enhancing our integrated system from consulting services to solve business issues to maintenance services, and strengthening our business foundation as a logistics integrator. In addition, we will engage in the research and development of differentiated products using advanced technologies.

      Regarding the improvement of productivity and efficiency, we will work on building a production system that supports growth and optimizing the supply chain. We will strive to reduce costs across the entire supply chain by streamlining overall logistics through DX and promoting leveling and standardization in production with integrated production and sales.

      [Consolidated forecasts by segment]
      	Net sales	Operating profit
      Office Furniture business	207.0 billion yen	24.5 billion yen
      Store Displays business	120.0 billion yen	3.5 billion yen
      Material Handling Systems business	14.0 billion yen	0.0 billion yen
      Others	6.0 billion yen	0.2 billion yen
      Adjustments	-	(2.2 billion yen)
      Total	347.0 billion yen	26.0 billion yen

      Note: Adjustments refer to SG&A expenses that are not allocated to any specific business segment, such as transient expenses incurred due to business restructuring and structural reforms, and research and development expenses related to advanced technologies.

      Major expenses included in adjustments: (Expenses related to the renewal of corporate branding, research and development expenses related to advanced technology areas such as AI and robot technology, etc.)

      In the business plan of each segment for the fiscal year ending March 31, 2027, a portion of the research and development expenses for the Material Handling Systems business will be transferred to adjustments. There are no changes regarding the Office Furniture business, Store Displays business, Powertrain business, and others.

   2. Management Policy

      1. Basic policy on Management of the Company

         At the Okamura Group (the "Group"), our mission is to "Contribute to society by creating environments where people can thrive with rich ideas and reliable quality." Under this mission, we aim to realize a society in which all people can work and live with vitality and smiles in line with our purpose of "Realizing a society where people can thrive."

         In 1945, Okamura Seisakusho (Okamura) was founded jointly by engineers who embraced its founding purpose, each providing funds, expertise, and labor. The spirit of the founding members took hold as our corporate culture guided by our Basic Policy, a corporate philosophy composed of Innovative Creation, Cooperation, Being Cost Conscious, Saving for Future, and Social Responsibility. Under the motto of "Quality Pays for Itself," we have been working to provide society with high-quality products and services that precisely address our customers' needs. This endeavor has become Okamura's corporate DNA and passed down to the Okamura Group's present management and business activities.

         Okamura Way, our corporate philosophy, comprises Okamura's Mission (our management approach), the Okamura Declaration (what we want to be), and Okamura Basics (the values we hold dear). At the core of all of these is our perspective "Where people can thrive."

         In today's changing value system, one in which sustainability is becoming ever more important, the vitality of every individual will lead to solutions to social issues. Based on this belief and our sense of corporate purpose, we at the Okamura Group aim to contribute to the realization of a society in which all people can work and live with vitality and smiles. Our activities and initiatives linked to Okamura Way are presented on our website: https://live.okamura.co.jp/ (in Japanese).

         We will strive to create new demand and strengthen our management base to respond to change while working to resolve social issues through our businesses.

      2. Corporate Management Strategies for the Medium and Long Term

         On May 29, 2026, we plan to disclose the Midterm Management Plan 2028, spanning the three years from the fiscal year ending March 31, 2027 to the fiscal year ending March 31, 2029.

      3. Basic Policy on the Distribution of Profits and Dividends for the Fiscal Year under Review and the Next Fiscal Year

      The Group considers an adequate return of profits to shareholders to be one of its most important management priorities. We intend to distribute an appropriate share of profits in accordance with its business performance and will endeavor to maintain a stable dividend payout while taking into consideration its financial position, future business developments, and retained earnings.

      Under the Midterm Management Plan 2025, with the fiscal year under review as the final year, we will maintain stable dividends of at least 40% of profit after tax, raising the dividend payout ratio from the level of the previous Midterm Management Plan.

      Based on policies such as this, as well as a consideration of the consolidated business results for the fiscal year ended March 31, 2026, we plan to pay the year-end dividends equivalent to 52 yen per share for the fiscal year ended March 31, 2026. As a result, including the interim dividends of 52 yen per share, the annual dividends will be 104 yen per share.

      We forecast annual dividends of 105 yen per share for the fiscal year ending March 31, 2027.

   3. Basic Policy on Selection of Accounting Standards

      The Group prepares consolidated financial statements using Japanese GAAP at present, based on a consideration of the comparability of consolidated financial statements over time and comparability with other entities.

      The Group intends to appropriately address the application of the IFRS upon consideration of internal and external circumstances.

   4. Consolidated Financial Statements and Principal Notes

   1. Consolidated Balance Sheets

      (Millions of yen)

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

      Assets
      Current assets
      Cash and deposits	26,245	32,725
      Notes and accounts receivable - trade, and contract assets	87,862	86,106
      Merchandise and finished goods	8,469	9,176
      Work in process	6,982	6,976
      Raw materials and supplies	6,761	7,999
      Other	3,538	3,705
      Allowance for doubtful accounts	(241)	(199)
      Total current assets	139,618	146,490
      Non-current assets
      Property, plant and equipment
      Buildings and structures, net	29,483	28,168
      Machinery, equipment and vehicles, net	17,380	17,718
      Land	34,602	33,633
      Construction in progress	1,333	1,323
      Other, net	4,056	6,697
      Total property, plant and equipment	86,856	87,541
      Intangible assets
      Goodwill	5,975	9,020
      Other	4,908	8,037
      Total intangible assets	10,883	17,058
      Investments and other assets
      Investment securities	43,971	42,344
      Retirement benefit asset	1,213	1,452
      Leasehold deposits	5,401	5,826
      Deferred tax assets	421	430
      Other	801	746
      Allowance for doubtful accounts	(24)	(13)
      Total investments and other assets	51,785	50,787
      Total non-current assets	149,525	155,386
      Total assets	289,144	301,877

      (Millions of yen)

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

      Liabilities
      Current liabilities
      Notes and accounts payable - trade	28,230	26,794
      Short-term borrowings	6,171	3,715
      Current portion of long-term borrowings	1,852	1,052
      Income taxes payable	4,527	5,314
      Accrued consumption taxes	1,566	2,344
      Contract liabilities	1,795	2,064
      Provision for bonuses	4,440	4,114
      Other	5,139	5,889
      Total current liabilities	53,723	51,289
      Non-current liabilities
      Bonds payable	10,000	10,000
      Long-term borrowings	17,816	15,258
      Retirement benefit liability	13,041	8,329
      Deferred tax liabilities	3,418	5,049
      Other	4,349	5,950
      Total non-current liabilities	48,625	44,498
      Total liabilities	102,349	95,787
      Net assets
      Shareholders' equity
      Share capital	18,670	18,670
      Capital surplus	16,770	16,800
      Retained earnings	138,933	151,770
      Treasury shares	(7,734)	(7,701)
      Total shareholders' equity	166,640	179,539
      Accumulated other comprehensive income
      Valuation difference on available-for-sale securities	13,864	17,990
      Foreign currency translation adjustment	2,907	4,030
      Remeasurements of defined benefit plans	1,731	2,568
      Total accumulated other comprehensive income	18,502	24,589
      Non-controlling interests	1,652	1,960
      Total net assets	186,795	206,089
      Total liabilities and net assets	289,144	301,877

   2. Consolidated Statements of Income and Comprehensive Income

      Consolidated Statements of Income		(Millions of yen)
      	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
      Net sales	314,527	329,031
      Cost of sales	*1 208,997	*1 215,059
      Gross profit	105,529	113,971
      Selling, general and administrative expenses
      Selling expenses	2,518	3,393
      Packing and transportation costs	11,230	11,010
      Salaries and allowances	27,688	32,939
      Provision for bonuses	3,101	2,960
      Retirement benefit expenses	1,176	833
      Depreciation	2,316	2,647
      Rent expenses	8,673	9,815
      Other	24,889	26,226
      Total selling, general and administrative expenses	*1 81,593	*1 89,827
      Operating profit	23,935	24,144
      Non-operating income
      Interest income	90	115
      Dividend income	971	1,017
      Share of profit of entities accounted for using equity method	1,399	878
      Foreign exchange gains	14	124
      Other	845	794
      Total non-operating income	3,321	2,929
      Non-operating expenses
      Interest expenses	303	503
      Loss on sale and retirement of non-current assets	173	285
      Other	320	444
      Total non-operating expenses	797	1,234
      Ordinary profit	26,459	25,839
      Extraordinary income
      Gain on sale of investment securities	4,051	6,645
      Gain on contribution of securities to retirement benefit trust	-	258
      Total extraordinary income	4,051	6,904
      Extraordinary losses
      Loss on sale of non-current assets	-	1,001
      Impairment losses	*2 14	*2 1,271
      Loss on sale of investment securities	1	82
      Loss on valuation of investment securities	15	884
      Total extraordinary losses	31	3,240
      Profit before income taxes	30,479	29,503
      Income taxes - current	7,553	7,879
      Income taxes - deferred	844	(1,005)
      Total income taxes	8,398	6,873
      Profit	22,081	22,630
      Profit attributable to non-controlling interests	36	213
      Profit attributable to owners of parent	22,045	22,416

      Consolidated Statements of Comprehensive Income			(Millions of yen)
      	Fiscal year ended March 31, 2025		Fiscal year ended March 31, 2026
      Profit		22,081	22,630
      Other comprehensive income
      Valuation difference on available-for-sale securities		(3,047)	3,881
      Foreign currency translation adjustment		1,069	1,132
      Remeasurements of defined benefit plans, net of tax		928	837

      Share of other comprehensive income of entities

      160 324

      accounted for using equity method

      Total other comprehensive income (888) 6,175

      Comprehensive income attributable to

Comprehensive income 21,193 28,805

Comprehensive income attributable to owners of parent 21,145 28,503

Comprehensive income attributable to non-controlling

interests

47

302

1. Consolidated Statements of Changes in Equity

Fiscal year ended March 31, 2025

(Millions of yen)

Fiscal year ended March 31, 2026

(Millions of yen)

Loss (gain) on contribution of securities to retirement benefit trust

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

- (258)

(1,399) (878)

(Millions of yen)

1. Notes to Consolidated Financial Statements

   (Notes on going concern assumption) Not applicable.

   (Important matters that form a basis for the preparation of the consolidated financial statements)

   1. Scope of consolidation

      1. Consolidated subsidiaries

         Number of consolidated subsidiaries: 33

         Names of major subsidiaries:

         NS Okamura Corporation, Sanyo Okamura Corporation, Okamura Support and Service Corporation, Okamura (China) Co., Ltd., FujiSeiko Co., Ltd., SEC Co., Ltd., Hangzhou Okamura Transmission Co.,

         Ltd., Siam Okamura International Co., Ltd., DB&B Holdings Pte. Ltd., Boss Design Limited

      2. Unconsolidated subsidiaries

         Number of unconsolidated subsidiaries: 1

         Reason for exclusion from the scope of consolidation

         The unconsolidated subsidiary is a small company and the total amounts of its assets, net sales, profit (the proportion attributable to the Company's equity interest) and retained earnings (the proportion attributable to the Company's equity interest) do not materially affect the Company's consolidated financial statements.

   2. Scope of application of the equity method

      1. Unconsolidated subsidiaries accounted for using the equity method

         Number of unconsolidated subsidiaries accounted for using the equity method: 1

      2. Affiliates accounted for using the equity method

         Number of affiliates accounted for using the equity method: 9

         Names of major affiliates accounted for using the equity method: Siam Okamura Steel Co., Ltd., Seiwa Business Co., Ltd.

      3. Unconsolidated subsidiaries not accounted for using the equity method Not applicable.

      4. Affiliates not accounted for using the equity method Not applicable.

      5. For equity method affiliates with an annual accounts closing date that differs from the Company's consolidated closing date, the Company uses financial statements for each affiliate's fiscal year or financial statements based on provisional closing.

3. Annual accounts closing of consolidated subsidiaries and related matters

The annual accounts closing date for the Company's 17 overseas consolidated subsidiaries is December 31. As this is within three months of the Company's consolidated closing date, the Company prepares its consolidated financial statements based on the financial statements for each subsidiary's fiscal year. The necessary consolidation adjustments are made to material transactions that occur between each subsidiary's annual accounts closing date and the Company's consolidated closing date.

(Changes in presentation)

(Consolidated statements of cash flows)

"Amortization of goodwill," which was included in "Other, net" under "Cash flows from operating activities" in the previous consolidated fiscal year, is presented separately for the current consolidated fiscal year due to its increased materiality. To reflect this change in presentation method, the consolidated financial statements for the previous consolidated fiscal year have been reclassified accordingly.

As a result, 1,417 million yen presented in "Other, net" under "Cash flows from operating activities" in the consolidated statement of cash flows for the previous consolidated fiscal year has been reclassified into "Amortization of goodwill" of 2,040 million yen and "Other, net" of (622) million yen.

(Changes in scope of consolidation)

Boss Design Limited has been included in the scope of consolidation in the fiscal year under review, following the share acquisition. In addition, the Company absorbed Kansai Okamura Corporation, which was a consolidated subsidiary, through a merger on April 1, 2025.

(Consolidated balance sheets)

*1: The accumulated depreciation on property, plant and equipment is as follows:

Previous fiscal year (Ended March 31, 2025)

Fiscal year under review (Ended March 31, 2026)

Accumulated depreciation 117,564 million yen 122,628 million yen

*2: Items related to unconsolidated subsidiaries and affiliates are as follows.

Previous fiscal year (Ended March 31, 2025)

Fiscal year under review (Ended March 31, 2026)

Investment securities (shares) 7,703 million yen 8,815 million yen

*3: Pledged assets and secured obligations

Pledged assets and secured obligations are as follows:

Pledged assets

Previous fiscal year (Ended March 31, 2025)

Fiscal year under review (Ended March 31, 2026)

Buildings and structures 1,678 million yen 1,585 million yen Land 7,732 7,732

Total 9,411 million yen 9,317 million yen

Of which, assets pledged as security for plant foundation:

Previous fiscal year (Ended March 31, 2025)

Fiscal year under review (Ended March 31, 2026)

Buildings and structures 213 million yen 220 million yen

Land 282 282

Total 496 million yen 502 million yen Secured obligations

Previous fiscal year (Ended March 31, 2025)

Fiscal year under review (Ended March 31, 2026)

Short-term borrowings 1,600 million yen 100 million yen

Long-term borrowings 600 2,000

Total 2,200 million yen 2,100 million yen Of which, obligations corresponding to security pledged for plant foundation:

Previous fiscal year (Ended March 31, 2025)

Fiscal year under review (Ended March 31, 2026)

Short-term borrowings 200 million yen 100 million yen

*4: The Company has entered into a specified commitment line agreement with the main financial institutions with which it transacts.

Previous fiscal year

(Ended March 31, 2025)

Fiscal year under review

(Ended March 31, 2026)

Total amount of specified commitment line agreement

20,000 million yen 20,000 million yen

Outstanding amount borrowed - -

Difference 20,000 million yen 20,000 million yen

(Consolidated statements of income)

*1: The total amounts of research and development expenses included in selling, general and administrative expenses and manufacturing costs are as follows:

Previous fiscal year

(From April 1, 2024

to March 31, 2025)

Fiscal year under review

(From April 1, 2025

to March 31, 2026)

Research and development expenses

1,426 million yen 1,486 million yen

*2: Impairment losses

The Group recorded impairment losses for the following asset groups:

Previous fiscal year (From April 1, 2024 to March 31, 2025)

The Group groups business-use assets according to the classifications used for management accounting.

In the case of business-use assets for which cash flows from operating activities are consistently negative and the Group does not expect to recover the full carrying value, the carrying value is reduced to its recoverable value.

These include 3 million yen in buildings and structures and 11 million yen in other property, plant and equipment.

The recoverable amount is measured using value-in-use, which is calculated to be zero.

Fiscal year under review (From April 1, 2025 to March 31, 2026)

The Group groups business-use assets according to the classifications used for management accounting, and groups idle assets by individual asset.

In the case of idle assets and business-use assets for which cash flows from operating activities are consistently negative and the Group does not expect to recover the full carrying value, the carrying value is reduced to its recoverable value.

These include 764 million yen in buildings and structures, 322 million yen in machinery and equipment, and 183 million yen in other property, plant and equipment.

The recoverable amount is measured using net sale value and value-in-use, and in calculating the net sale value, the appraisal value based on real estate appraisal standards is used. In addition, value-in-use is calculated to be zero.

(Consolidated statements of changes in equity)

Previous fiscal year

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

1. Shares issued

   Class of shares	Beginning of the fiscal year	Increase	Decrease	End of the fiscal year
   Common shares	100,621,021	-	-	100,621,021

2. Treasury shares

   Class of shares	Beginning of the fiscal year	Increase	Decrease	End of the fiscal year
   Common shares	5,977,449	5,740	-	5,983,189

   Outline of reasons for the change:

   The reasons for the increase in shares are as follows:

   Increase due to the purchase of fractional shares 762 shares

   Treasury shares (shares of the Company) purchased by equity method affiliates and attributable to the Company

   4,978 shares

3. Share acquisition rights Not applicable.

4. Dividends

   1. Dividends paid

      Resolution	Class of shares	Total amount of dividends (Millions of yen)	Dividends per share (Yen)	Record date	Effective date
      Annual General Meeting of Shareholders held on June 25, 2024	Common shares	4,077	43.00	March 31, 2024	June 26, 2024
      Meeting of the Board of Directors held on October 18, 2024	Common shares	4,267	45.00	September 30, 2024	December 10, 2024

      Resolution	Class of shares	Source of dividends	Total amount of dividends (Millions of yen)	Dividends per share (Yen)	Record date	Effective date
      Annual General Meeting of Shareholders held on June 25, 2025	Common shares	Retained earnings	4,646	49.00	March 31, 2025	June 26, 2025

   2. Dividends for which the record date falls in the fiscal year under review and the effective date falls in the next fiscal year

Fiscal year under review

(From April 1, 2025 to March 31, 2026)

1. Shares issued

   Class of shares	Beginning of the fiscal year	Increase	Decrease	End of the fiscal year
   Common shares	100,621,021	-	-	100,621,021

2. Treasury shares

   Class of shares	Beginning of the fiscal year	Increase	Decrease	End of the fiscal year
   Common shares	5,983,189	5,870	41,597	5,947,462

   Outline of reasons for the change:

   The reasons for the increase in shares are as follows:

   Increase due to the purchase of fractional shares 814 shares

   Treasury shares (shares of the Company) purchased by equity method affiliates and attributable to the Company

   5,056 shares

   The reasons for the decrease in shares are as follows:

   Disposal of treasury shares as restricted stock compensation by resolution of the Board of Directors on July 11, 2025

   Treasury shares (shares of the Company) disposed of by equity method affiliates and attributable to the Company

   31,385 shares

   10,212 shares

3. Share acquisition rights Not applicable.

4. Dividends

   1. Dividends paid

      Resolution	Class of shares	Total amount of dividends (Millions of yen)	Dividends per share (Yen)	Record date	Effective date
      Annual General Meeting of Shareholders held on June 25, 2025	Common shares	4,646	49.00	March 31, 2025	June 26, 2025
      Meeting of the Board of Directors held on October 10, 2025	Common shares	4,933	52.00	September 30, 2025	December 10, 2025

      Note: The dividends per share resolved at the Board of Directors meeting held on October 10, 2025, include a commemorative dividend of 3.50 yen.

   2. Dividends for which the record date falls in the fiscal year under review and the effective date falls in the next fiscal year

Note: This is scheduled to be resolved at the Annual General Meeting of Shareholders to be held on June 24, 2026.

Note: The dividends per share scheduled to be resolved at the Annual General Meeting of Shareholders to be held on June 24, 2026, include a commemorative dividend of 3.50 yen.

(Consolidated statements of cash flows)

*1: Relationship between the closing balance of cash and cash equivalents and the accounts presented on the consolidated balance sheet

Previous fiscal year

(From April 1, 2024

to March 31, 2025)

Fiscal year under review

(From April 1, 2025

to March 31, 2026)

Cash and deposits account 26,245 million yen 32,725 million yen Time deposits for which the

deposit period exceeds three

months

(834) (863)

Cash and cash equivalents, etc. 25,410 million yen 31,861 million yen

(Segment information, etc.) [Segment information]

1. Overview of reportable segments

   The Group's reportable segments comprise constituent units for which separate financial information is available and which are subject to regular review by the Board of Directors for the purpose of determining the allocation of management resources and evaluating business performance.

   The Group engages in business activities by formulating comprehensive strategies for the products and services it handles based on manufacturing and sales systems for each product and service.

   The Group is therefore composed of segments delineated by product and service, based on its manufacturing and sales systems. It comprises three businesses: the Office Furniture business, the Store Displays business, and the Material Handling Systems business.

   The Office Furniture business manufactures and sells products such as office furniture, furniture for public facilities, security systems, and healthcare products. The Store Displays business manufactures and sells products such as display fixtures, refrigerated showcases, and store counters. The Material Handling Systems business manufactures and sells storage shelves for factories and warehouses and logistics automation equipment and devices.

2. Methods used to calculate net sales, profit and loss, assets, liabilities, and other items for each reportable segment The accounting methods used for each reportable business segment are the same as presented in "Important matters that form a basis for the preparation of the consolidated financial statements."

3. Information concerning net sales, profit and loss, assets, liabilities, and other items for each reportable segment Previous fiscal year

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

(Millions of yen)

Notes: 1. The "Others" category includes business segments such as the Powertrain business that are not included in any other reportable segment.

1. Adjustments of 64,028 million yen for segment assets include corporate assets that are not allocated to any reportable segment, including the amount of increase. Corporate assets mainly comprise cash, deposits, and investment securities that do not belong to any reportable segment.

2. The totals for segment profit correspond to operating profit on the consolidated statements of income.

Fiscal year under review

(From April 1, 2025 to March 31, 2026)

(Millions of yen)

Notes: 1. The "Others" category includes business segments such as the Powertrain business that are not included in any other reportable segment.

1. Adjustments of 60,322 million yen for segment assets include corporate assets that are not allocated to any reportable segment, including the amount of increase. Corporate assets mainly comprise cash, deposits, and investment securities that do not belong to any reportable segment.

2. The totals for segment profit correspond to operating profit on the consolidated statements of income.

[Related information]

1. Information by product/service

   Information is omitted as there are no individual products or services within net sales to external customers that account for 10% or more of net sales on the consolidated statements of income.

2. Information by region

   1. Net sales

      Information is omitted as net sales to external customers within Japan account for more than 90% of net sales on the consolidated statements of income.

   2. Property, plant and equipment

      Information is omitted as the amount of property, plant and equipment located within Japan accounts for more than 90% of property, plant and equipment on the consolidated balance sheet.

3. Information by major customer

   Information is omitted as there are no individual customers within net sales to external customers that account for 10% or more of net sales on the consolidated statements of income.

   [Information concerning impairment losses on non-current assets for each reportable segment]

   Previous fiscal year

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

   (Millions of yen)

   	Reportable segment				Others	Total	Adjustments	Amount shown on the consolidated statements of income
   	Office Furniture business	Store Displays business	Material Handling Systems business	Total
   Impairment losses	13	0	0	14	-	14	-	14

   Fiscal year under review

   (From April 1, 2025 to March 31, 2026)

   (Millions of yen)

   	Reportable segment				Others	Total	Adjustments	Amount shown on the consolidated statements of income
   	Office Furniture business	Store Displays business	Material Handling Systems business	Total
   Impairment losses	480	110	0	590	680	1,271	-	1,271

   [Information concerning the amortization and remaining balance of goodwill for each reportable segment]

   Previous fiscal year

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

   (Millions of yen)

   	Reportable segment				Others	Corporate/ eliminations	Total
   	Office Furniture business	Store Displays business	Material Handling Systems business	Total
   Amortization	2,040	-	-	2,040	-	-	2,040
   Closing balance	5,975	-	-	5,975	-	-	5,975

   Fiscal year under review

   (From April 1, 2025 to March 31, 2026)

   (Millions of yen)

   	Reportable segment				Others	Corporate/ eliminations	Total
   	Office Furniture business	Store Displays business	Material Handling Systems business	Total
   Amortization	1,181	-	-	1,181	-	-	1,181
   Closing balance	9,020	-	-	9,020	-	-	9,020

   [Information concerning gain on bargain purchase for each reportable segment] Not applicable.

   (Business combinations)

   (Business combination by acquisition)

   At a meeting held on March 24, 2025, the Board of Directors of the Company resolved to acquire 100% of the issued shares of Boss Design Limited (headquartered in the United Kingdom), making it a wholly owned subsidiary. In accordance with this resolution, the share acquisition was completed on April 1, 2025.

   1. Outline of the business combination

      1. Name of the acquired company and its business description

         Name of the acquired company: Boss Design Limited (hereinafter "BDL")

         Business description: Manufacturing and sales of loose furniture and acoustic products

      2. Main reasons for the business combination

         In its Midterm Management Plan, the Okamura Group identified the "development of overseas business rooted in the local market" as its basic policy and is making efforts to develop the local production for local consumption business through M&A and partnerships and joint ventures with leading local business partners. BDL is a manufacturer and distributor of contract furniture, with a focus on loose furniture and acoustic products. BDL's strengths lie in its advanced upholstery and woodworking techniques, as well as its design-oriented products and ability to fulfill customized orders. BDL also has a solid business foundation in the European and U.S. markets, with a blue-chip customer base consisting mainly of global and major local companies.

         With regard to its overseas business, the Company will expand its product lineup by incorporating BDL's strength in loose furniture in addition to the Company's core product, task seating. By mutually leveraging BDL's business base in the U.K., European, and U.S. markets and the Company's presence in Japan and other Asian markets, the Company will promote product sales expansion and new market development, aiming to further expand its overseas business.

      3. Date of the business combination April 1, 2025

      4. Legal form of the business combination Share acquisition

      5. Name of the company after combination No change

      6. Ratio of voting rights acquired 100%

      7. Main reason for determining the acquiring company

         The reason is that the Company acquired the shares in exchange for cash consideration.

   2. Performance period of the acquired company included in the consolidated financial statements From April 1, 2025 to March 31, 2026

   3. Acquisition cost of the acquired company and breakdown by type of consideration Consideration for acquisition Cash 7,685 million yen Acquisition cost 7,685 million yen

   4. Description and amount of major acquisition-related expenses Advisory fees and commissions: 589 million yen

   5. Amount, cause, and amortization method and period of the goodwill that has arisen

      1. Amount of the goodwill that has arisen 3,751 million yen

      2. Cause of goodwill

         It has arisen from the excess earning power expected from the future business expansion of the acquired company.

      3. Amortization method and period

         Amortized over 15 years on a straight-line basis.

   6. Amounts of assets acquired and liabilities assumed on the business combination date, and a major breakdown

      Current assets 3,772 million yen

      Non-current assets 2,443 million yen

      Total assets 6,216 million yen

      Current liabilities 1,684 million yen

      Non-current liabilities 598 million yen

      Total liabilities 2,282 million yen

   7. Estimated amount of impact on the consolidated statement of income for the fiscal year under review assuming the business combination was completed on the commencement date of the consolidated fiscal year, and its calculation method

      Information is omitted as the business combination was completed on the commencement date of the consolidated fiscal year.

   8. Amount allocated to intangible assets other than goodwill, breakdown by major type, and weighted average amortization period overall and by major type

      Type Amount Weighted average amortization period Customer-related assets 1,387 million yen 9 years

   9. Details of the conditional acquisition consideration as stipulated in the business combination agreement,

      and the accounting policy for periods following the fiscal year under review

      1. Details of acquisition consideration

         Additional conditional acquisition consideration will be paid to the acquired company based on its performance during a specified period (until the fiscal year ending March 31, 2028).

      2. Future accounting policies

In the event of a change in the acquisition consideration, the acquisition cost will be adjusted as though it had been incurred at the time of acquisition, and the amount of goodwill and its amortization will be adjusted accordingly.

(Absorption-type merger with consolidated subsidiary)

The Company completed an absorption-type merger (a simplified, short-form merger) effective April 1, 2025, in accordance with the merger agreement dated February 17, 2025.

1. Summary of the merger

   1. Name of the constituent enterprise and its business description Name of the constituent enterprise: Kansai Okamura Corporation

      Business description: Manufacturing and sales of steel furniture, general metal products, and certain wooden products

   2. Date of the merger April 1, 2025

   3. Legal form of the merger

      Absorption-type merger with the Company as the surviving entity and Kansai Okamura Corporation as the dissolved entity

   4. Name of the company after the merger Okamura Corporation

   5. Other matters related to the transaction

      The Company aims to enhance a sense of unity among the Okamura Group by integrating with Kansai Okamura Corporation, thereby accelerating the optimization of integrated supply chain performance throughout production, sales, and logistics, strengthening human development through human resource exchanges and education, and boosting the business competitiveness and management efficiency of the Okamura Group.

2. Outline of the accounting treatment applied

In accordance with the "Accounting Standard for Business Combinations" (ASBJ Statement No. 21, issued on January 16, 2019) and the "Implementation Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures" (ASBJ Guidance No. 10, issued on January 16, 2019), the Company has accounted for the transaction as a business combination under common control.

(Per share information)

Notes: 1. Diluted earnings per share are omitted as there are no dilutive shares.

1. Basis for the calculation of basic earnings per share

(Significant subsequent events)

(Organizational restructuring of the Company and its consolidated subsidiaries)

At a meeting held on February 13, 2026, the Board of Directors of the Company resolved to conduct an organizational restructuring involving the Company and its wholly owned consolidated subsidiaries, and on April 1, 2026, the Company succeeded to a portion of the business through an absorption-type company split of a consolidated subsidiary, and absorbed the said subsidiary into another consolidated subsidiary. Also on the same day, the Company absorbed two of its consolidated subsidiaries.

1. Purpose of the organizational restructuring

   In the Office Furniture business of the Okamura Group, the Company aims to accelerate the improvement of the value chain, including after-sales service and purchasing functions, while promoting human resource development through the sharing of knowledge, thereby further boosting its business competitiveness and management efficiency.

2. Outline of the organizational restructuring

   The Company succeeded to the maintenance and after-sales service business of Okamura Support and Service Corporation, a wholly owned consolidated subsidiary, through an absorption-type company split (a. Absorption-type split), and on the same day, absorbed it into Okamura Business Support Corporation, a wholly owned consolidated subsidiary, through an absorption-type merger (b. Absorption-type merger 1).

   Also on the same day, the Company absorbed Hill International Inc. and Td Japan Ltd., both wholly owned consolidated subsidiaries, through an absorption-type merger (c. Absorption-type merger 2).

   1. Absorption-type split

      	Company succeeding in absorption-type split	Company splitting in absorption-type split
      (i) Name of the constituent enterprise	Okamura Corporation	Okamura Support and Service Corporation
      (ii) Business description of the constituent enterprise		- Installation work, maintenance, and after-sales services for overall office environments, etc.
      (iii) Date of the business combination	April 1, 2026
      (iv) Legal form of the business combination	Absorption-type company split with the Company as the succeeding entity and Okamura Support and Service Corporation as the splitting entity
      (v) Name of the company after combination	Okamura Corporation

      • Manufacture and sale of steel furniture

      • Manufacture and sale of display fixtures and other equipment

      • Manufacture and sale of industrial machinery and other equipment, etc.

   2. Absorption-type merger 1

      	Surviving company in absorption-type merger	Dissolved company in absorption-type merger
      (i) Name of the constituent enterprise	Okamura Business Support Corporation	Okamura Support and Service Corporation
      (ii) Business description of the constituent enterprise	- Agency business for non-life insurance and life insurance, Okamura Group employee welfare business, etc.	- Installation work for overall office environments, etc.
      (iii) Date of the business combination	April 1, 2026

      (iv) Legal form of the business combination	Absorption-type merger with Okamura Business Support Corporation as the surviving entity and Okamura Support and Service Corporation as the dissolved entity
      (v) Name of the company after combination	Okamura Business Support Corporation

   3. Absorption-type merger 2

   	Surviving company in absorption-type merger	Dissolved company in absorption-type merger	Dissolved company in absorption-type merger
   (i) Name of the constituent enterprise	Okamura Corporation	Hill International Inc.	Td Japan Ltd.
   (ii) Business description of the constituent enterprise		- Import and sales of high-end furniture and interior products from Europe and the U.S., etc.	- Import and sales of dealing desks and monitor arms, etc.
   (iii) Date of the business combination	April 1, 2026
   (iv) Legal form of the business combination	Absorption-type merger with the Company as the surviving entity and Hill International Inc. and Td Japan Ltd. as the dissolved entities
   (v) Name of the company after combination	Okamura Corporation

   • Manufacture and sale of steel furniture

   • Manufacture and sale of display fixtures and other equipment

   • Manufacture and sale of industrial machinery and other equipment, etc.

3. Outline of the accounting treatment applied

In accordance with the "Accounting Standard for Business Combinations" (ASBJ Statement No. 21, issued on January 16, 2019) and the "Implementation Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures" (ASBJ Guidance No. 10, issued on January 16, 2019), the Company has accounted for the transaction as a business combination under common control.

5. Non-Consolidated Financial Statements

(1) Non-Consolidated Balance Sheets

(Millions of yen)

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

(Millions of yen)

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