Highlights of H1 financial results briefing
I Reduced sales, increased operating profit JSales:
Declined YoY, despite firm domestic demand for commercial vehicles (CV)/construction machineries
H1 Financial
results
(hydraulic excavators), due to impact of lowering demand in Thailand and downsizing
panel business in the U.S., and weakening demand for mining machineries and wheel loaders. v'Operating profit:
Increased due to improving sales mix and declined depreciation in Thailand and at PK (Press Kogyo).
I Profit:
Decreased due to recorded demolition and removal costs for head office reconstruction at PK.
Earnings forecast revision
I Full-year Forecast of FY2025 was revised upward vs. August 7 forecast,
Sales:
185.0 billion yen (Nov. 11) vs. 178.7 billion yen (Aug.7). v'Operating profit:
11.1 billion yen (Nov. 11) vs. 9.7 billion yen (Aug.7).
Driven by reflecting higher H2 volume forecasts at PK, in the U.S., Thailand and revised FX forecast assuming weaker yen.
. - e s -
I Annual dividend and share repurchases
Raising annual divided to 35 yen per share (-I-3 yen YoY/+2 yen than previous forecast ), with a plan to repurchase and cancel shares totaling 1.5 billion yen in FY2025.
I Total payout ratio and DOE
>TotaI payout ratio is expected to be 78.3%, with DOE to be 3.0% (-I-0.1% YoY/than previous forecast).
Highlights of H1 financial results briefing
I will now present our H1 financial results for the fiscal year ending March 31, 2026
There are three points to our financial results announcement.
GUESS ICOG*fO
In H1 financial results for the fiscal year ending March 31, 2026, sales decreased year on year, while operating profit increased.
Net sales declined year on year, reflecting a drop in production associated with lower demand in Thailand, downsizing of the panel business in the U.S. following a portfolio revision there, and a decline in demand for machinery other than hydraulic excavators (mining machinery and wheel loaders, etc.), despite firm domestic demand for commercial vehicles and construction machinery (hydraulic excavators). Operating profit increased, however, reflecting an improved sales mix and a decrease in depreciation at Press Kogyo and in Thailand.
However, net profit decreased year on year, mainly due to the recording of demolition and removal costs for the head office reconstruction at Press Kogyo.
The full-year earnings forecast for the fiscal year ending March 31, 2026 has been revised upward from the forecast announced on August 7. For net sales, the forecast is revised upward from 178.7 billion yen to 185.0 billion yen, and for operating profit it has been revised upward from 9.7 billion yen to 11.1 billion yen.
The revision mainly reflects an expectation for higher sales volumes in the second half at Press Kogyo and in Thailand and the U.S., as well as a revised assumption for a weaker yen.
Following this upward revision of earnings, the annual dividend forecast has also been revised upward to 35 yen per share (up 3 yen year on year, up 2 yen from the previous forecast), and the Company plans to repurchase and cancel 1.5 billion yen of its own shares, as detailed in a press release today, in order to increase shareholder returns and capital efficiency.
The estimated total payout ratio for the year is 78.3%, with a DOE of 3.0% (up 0.1 percentage points year on year and compared to the previous forecast).
Agenda GUESS ICOG*fO
I . FY2025 Second Quarter (H1) Financial Results
d . FY2025 Earnings Forecast
FY2025 Second Quarter (H1) Financial Results PF?ESS ICOG*fO
I . FY2025 Second Quarter (H1) Financial Results
FY2025 Second Quarter (H1) Financial Results PF?ESS ICOG*fO
I will now give an overview of our financial results for H1 of the fiscal year ending Nlarch 31, 2026.
H1-Financial Results
Sales declined YoY
-The U.S. - Downsizing panel business.
Thailand - Lowering demand.
Operating profit increased YoY
PK - Improved sales mix and
I Profit increased
in Nov. 11 vs. Aug. 7 forecast
-PK - Improved sales mix.
- Japan - Weakening construction machinery •Thailand - Improved sales mix
declined depreciation.
production at the domestic Group Company (excl. hydraulic excavators).
and declined depreciation.
(Millions of Yen)
Net Sales
13.0yen
16.0yen
3.0yen
RMB
SEK 15 15
1400
I
GUESS ICOG*fO
95,288
100.0%
92,000
100%
-3,024
+0.3%
-824
-2,200
5,095
5.3%
5,100
+442
+8.7%
+8.6%
-32
+474
5,463
5.7%
5,000
5.4%
+238
+14.0%
3,404
3.6%
2,600
2.8%
-279
+20.2%
34.0yen
26.2yen
-2.6yen
USD
140.00
THB
38
00
H1-Financial Results GUESS ICOG*fO
For H1 of the fiscal year ending Nlarch 31, 2026, consolidated operating results were as follows: net sales of 92,264 million yen, operating profit of 5,537 million yen, and profit attributable to owners of parent of 3,124 million yen, as revenue decreased, operating profit increased, and net profit decreased year on year.
On a year-on-year basis, domestic automobile demand was firm, and cabins for hydraulic excavators in construction machinery saw sales volumes increase both for domestic and export markets as inventory adjustments undertaken by some customers in the previous year came to an end.
On the other hand, net sales for the overall Group decreased, reflecting a decrease in domestic sales in Thailand due to lower sales volumes caused by stricter loan screening for automobile purchases, the downsizing of the panel business in the U.S. due to a review of the business portfolio, and lower sales volume of construction machinery other than hydraulic excavators (mining machinery and wheel loaders) at KYOWA MFG. following a decrease in demand.
Operating profit increased. This was mainly due to an improvement in the sales mix and a
decrease in depreciation at Press Kogyo and in Thailand.
Profit increased compared to the earnings forecast of August 7, mainly due to an improved sales mix at Press Kogyo.
H1-Sales by Regions PF?ESS ICOG*fO
I PK I Domestic group companies I Thailand I U.S. I China
- Sales increased YoY - Sales declined due to lower - Sales declined due -Sales declined due - Sales increased driven by higher demand for construction to weakening demand to impact of downsizing due to recovery in volumes. machineries (excl. hydraulic panel business construction machinery
excavators). demand.
Press Kogyo | 35,085 | 37,700 | 37,718 | +2,633 | +7.5% | +0.0% | - | 37,718 | 2,633 | +7.5% |
Domestic Subsidiaries | 17,183 | 16,100 | 16,157 | -1,026 | -6.0% | +0.4% | - | 16,157 | -1,026 | -6.0% |
Thailand | 34,970 | 33,700 | 33,336 | -1,634 | -4.7% | -1.1% | +450 | 32,886 | -2,084 | -6.0% |
U.S. | 12,268 | 8,900 | 8,883 | -3,385 | -27.6% | -0.2% | -1,001 | 9,884 | -2,384 | -19.4% |
Indonesia | 2,546 | 2,300 | 2,303 | -243 | -9.5% | +0.1% | -260 | 2,563 | +17 | +0.6% |
Sweden | 4,431 | 4,700 | 4,724 | +293 | +6.6% | +0.5% | +37 | 4,687 | +256 | +5.8% |
China | 755 | 900 | 939 | +184 | +24.4% | +4.3% | -86 | 1,025 | +270 | +35.8% |
Elimination/ Adjustment | -11,950 | -12,300 | -11,796 | +154 | - | - | +35 | -11,831 | +119 | -1.0% |
Total | 95,288 | 92,000 | 92,264 | -3,024 | -3.2% | +0.3% | -824 | 93,088 | -2,200 | -2.3% |
USD | 161.14 | 144.82 | 140.00 |
THB | 4.38 | 4.44 | 4.00 |
RNIB | 22.06 | 20.20 | 20.00 |
SEK | 15.15 | 15.27 | 14.00 |
" c ' .
H1-Sales by Regions
Net sales by region are as follows.
On a year-on-year basis, net sales at Press Kogyo increased. The Automotive-Related Business experienced firm demand, while the Construction Machinery-Related Business saw an increase in sales volumes going into the current fiscal year as inventory adjustments undertaken by certain customers in the previous year came to an end.
At domestic subsidiaries, KYOWA MFG.'s net sales decreased following a drop in sales volumes due to a decline in demand for construction machinery other than hydraulic excavators.
In Thailand, net sales decreased due to a continued decline in sales volumes caused by stricter loan screening for automobile purchases.
In the U.S., net sales decreased due to the downsizing of the panel business, following a review of the business portfolio undertaken in line with the previous medium-term business plan, and a temporary decline in sales volumes of axle parts and door reinforcement parts for certain vehicle models.
In China, net sales increased due to a gradual recovery in domestic demand for construction machinery.