Sato : Financial Results Briefing Materials for 2nd Quarter of FY2025

November 12, 2025

SATO CorporationQ2 FY2025 Financial Results

(Six Months Ended September 30, 2025)

Securities Code: 6287.T

Jul-Sep 2025 ResultsBusiness Strategy Review

Jul-Sep 2025 ResultsBusiness Strategy Review

Summary

• Q2 (Jul-Sep) Results

  • Consolidated sales increased (+5%), while OI decreased (-6%) year on year.

    % in parentheses indicates year-on-year changes.

  • Overseas business: Sales (-1%) and OI (-30%) decreased. Japan business: Sales (+12%) and OI (+34%) increased.

    • Overseas base business: Sales (+2%) and OI (+8%) increased.

    • Overseas primary labels business: Sales (-8%) and OI (-64%) decreased.

  • Sales and OI were lower than planned in the overseas business and higher than planned in the Japan business.

    • Overseas, the base business in Asia and Oceania performed well, pushing up results above plan. However, overall sales and OI fell short of plan due to weaker demands in the primary labels business in Russia caused by weather conditions and increased costs.

    • In Japan, the recovery in mechatronics sales contributed to results exceeding the plan.

• FY25 (Apr-Mar) Outlook

  • The consolidated full-year OI forecast has been revised downward.

    • Overseas business: Based on the first half results, the forecast for the primary labels business has been revised downward.

      The forecast for the base business has been revised upward, due to strong performance at factories in Asia and Oceania.

    • Japan business: In light of strong mechatronics sales, the forecast has been revised upward.

Sales and OI by Business Segment *2

（Millions of JPY）

Consolidated Results*2

（Millions of JPY）

FX sensitivity for FY25: Assuming a 1-yen depreciation of the Japanese yen against the US dollar and an equivalent depreciation against other currencies, the estimated impact for the full-year FY25 would be an increase in sales of JPY 561 million and an increase in OI of JPY 35 million.

Average FX rates for Apr-Sep 2025: JPY 146.02/USD, JPY 168.05/EUR (Apr-Sep 2024: JPY 152.78/USD, JPY 166.06/EUR)

* EBITDA = Operating Income + Depreciation + Amortization (Incl. Goodwill)

·Depreciation for Jul-Sep 2025: JPY 1,501 million (Jul-Sep 2024: JPY 1,319 million)

·Amortization for Jul-Sep 2025: JPY 3 million (Jul-Sep 2024: JPY 38 million)

* 1 Apr-Sep results are shown on p. 33. 6

Overview

Change

（Millions of JPY）

Sales

• Sales in the base business increased, driven by Europe and Asia/Oceania.

• Sales in the primary labels business declined as the competitive environment in Europe returned to its normal state before the Ukraine conflict, and as the demand dropped due to weather conditions.

• Includes the impact of IAS 29, Financial Reporting in Hyperinflationary Economies ("Hyperinflation Accounting") in Argentina.

  Major Gains/Losses in OI

  Operating Income

  • OI in the base business increased

  • Positive factors

  • Negative factors

    +64

    -405

    due to strong performance in the Americas and Asia/Oceania.

    -330

    • The Americas primary labels

    • Asia/Oceania base business

    • The Americas base business

    • Europe primary labels

    • Europe base business

    • Europe primary labels

    • Europe base business

    • The Americas base business

    -6

    FY24

    Net Sales

    Gross Profit, etc.

    Excludes impact of FX

    SG&A

    FX Impact

    FY25

    * Apr-Sep results are shown on p. 38.

    1,626

• The Americas primary

labels

• The Americas and Europe primary labels

• Europe base business

• OI in the primary labels business declined due to increased costs in Europe.

7

Quarterly Sales and Operating Income

30,000

25,000

20,000

15,000

10,000

5,000

0

Sales (LHS) OI (RHS)

（Millions of JPY）

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

FY23

FY24

FY25

3,000

2,500

2,000

1,500

1,000

500

0

Base Business — The Americas

（Millions of JPY）

• Includes impact of IAS 29, Financial Reporting in Hyperinflationary Economies ("Hyperinflation Accounting") in Argentina.

Quarterly Sales and Operating Income

Sales

• Sales in the U.S. increased, driven by ongoing high-value projects for print and apply systems.

• Sales decreased in South America due to the negative impact of foreign exchange rates, despite strong demands amid inflation.

  Sales (LHS)

  OI (RHS)

  Q1

  Q2

  Q3

  Q4

  Q1

  Q2

  Q3

  Q4

  Q1

  Q2

  FY23 FY24 FY25

  6,000 600

  4,000

  2,000

  Sales	4,353	4,412	4,293	4,274	4,568	4,294	4,503	4,768	4,264	4,315
  YoY	+3.3%	-6.0%	-7.2%	+14.6%	+4.9%	-2.7%	+4.9%	+11.5%	-6.7%	+0.5%
  OI	197	80	352	-92	318	54	-24	28	164	133
  YoY	+17.0%	-75.5%	-13.1%	-	+61.3%	-32.9%	-	-	-48.4%	2.5x

  0

  400

  200

  0

  -200

  Operating Income

• In the U.S., OI increased due to the high-value contracts mentioned above and effective management of SG&A expenses.

• OI decreased in South America due to increased personnel costs, among other costs, driven by inflation.

  3,400

  Base Business — Europe

  	FY24	FY25	Change
  				YoY	In local currencies
  Total Sales	3,028	3,191	+162	+5.4%	+0.8%
  Operting Income	144	95	-49	-34.2%	-37.7%

  Quarterly Sales and Operating Income

  （Millions of JPY）

  Sales (LHS)

  OI (RHS)

  Q1

  Q2

  Q3

  Q4

  Q1

  Q2

  Q3

  Q4

  Q1

  Q2

  FY23 FY24 FY25

  600

  Sales

• In Europe, sales increased due to the positive impact of foreign exchange rates, despite weak investments amid economic downturns.

• The overall health care vertial remained strong.

  3,200

  3,000

  2,800

  2,600

  2,400

  400

  200

  0

  Operating Income

• OI decreased as the higher sales and improved mix of end markets were not enough to offset higher costs, such as SG&A expenses.

  Sales	2,991	2,714	3,008	2,999	3,221	3,028	3,106	3,121	3,129	3,191
  YoY	-6.4%	-16.9%	-4.5%	+7.5%	+7.7%	+11.6%	+3.3%	+4.1%	-2.9%	+5.4%
  OI	487	108	219	78	105	144	73	85	109	95
  YoY	2.9x	-47.1%	+11.2%	-60.9%	-78.3%	+33.8%	-66.2%	+9.0%	+4.3%	-34.2%

  8,000

  6,000

  4,000

  2,000

  Sales	4,431	4,679	5,120	4,790	5,564	5,483	5,718	5,251	5,234	5,516
  YoY	+4.8%	-3.9%	+8.2%	+17.3%	+25.6%	+17.2%	+11.7%	+9.6%	-5.9%	+0.6%
  OI	318	490	769	537	853	854	1,151	671	843	904
  YoY	-10.0%	-19.3%	+4.9%	2.0x	2.7x	+74.2%	+49.7%	+25.0%	-1.1%	+5.9%

  0

  Base Business — Asia/Oceania

  	FY24	FY25	Change
  				YoY	In local currencies
  Total Sales	5,483	5,516	+33	+0.6%	+0.6%
  Operting Income	854	904	+50	+5.9%	+6.1%

  （Millions of JPY）

  Sales (LHS)

  OI (RHS)

  Q1

  Q2

  Q3

  Q4

  Q1

  Q2

  Q3

  Q4

  Q1

  Q2

  FY23 FY24 FY25

  Quarterly Sales and Operating Income

  1,500

  1,000

  500

  0

  Sales

• In Australia, sales continued to be robust, driven by a high-value RFID projects.

• Sales increased at Chinese sales companies due to last-minute purchases before the increase in US tariff rates and growth in solution sales (kotouri) through direct sales.

• In Taiwan, sales decreased due to reduced demand for Argox products as the result of excess inventory built up in indirect sales channels.

  Operating Income

• OI increased, driven by strong printer exports that resulted in improved factory profits.

• OI increased due to sales growth at sales companies in China and the high-value projects in Australia mentioned above.

  		FY24	FY25	Change
  					YoY	In local currencies
  The Americas Achernar (Argetina) Plakorar (Brazil)	Total Sales	826	905	+79	+9.6%	+26.6%
  	Operating Income	135	116	-18	-13.4%	+9.5%
  Europe Okil/ X-pack (Russian)	Total Sales	5,497	4,930	-567	-10.3%	-17.3%
  	Operating Income	1,143	346	-797	-69.7%	-72.2%
  Asia/Oceania Hirich (Vietnam)	Total Sales	93	87	-6	-6.8%	-4.1%
  	Operating Income	11	5	-6	-52.7%	-53.3%
  Total Sales	Total Sales	6,416	5,922	-494	-7.7%	-11.4%
  	Operating Income	1,290	468	-821	-63.7%	-63.4%

  Primary Labels Business

  * Includes the impact of IAS 29, Financial Reporting in Hyperinflationary Economies ("Hyperinflation Accounting") in Argentina.

  Quarterly Sales and Operating Income

  （Millions of JPY）

  Sales (LHS)

  OI (RHS)

  8,000

  6,000

  4,000

  2,000

  0

  Q1

  Q2

  Q3

  Q4

  Q1

  Q2

  Q3

  Q4

  Q1

  Q2

  FY23 FY24 FY25

  Sales

  4,676

  5,297

  5,226

  4,661

  5,966

  6,416

  5,775

  4,796

  6,109

  5,922

  YoY

  -1.7%

  -6.2%

  -14.6%

  +2.5% +27.6% +21.1% +10.5%

  +2.9%

  +2.4%

  -7.7%

  OI

  1,118

  1,509

  1,136

  775

  1,301

  1,290

  1,198

  409

  561

  468

  YoY

  4.3x +55.2%

  -18.9%

  -29.5% +16.4%

  -14.5%

  +5.4%

  -47.2%

  -56.9%

  -63.7%

  2,000

  1,500

  1,000

  500

  0

  Sales

• In Europe, sales declined as the competitive environment of primary labels business returned to its normal state before the war in Ukraine, and as the demand dropped due to weather conditions. The impact of the tax changes is gradually abating.

• In the Americas, inflation continues to have an impact, but sales increased on successful development of new customers.

  Operating Income

• In Europe, OI decreased due to drops in sales as explained above, and cost increases caused by capital investment in production equipment and higher personnel expenses.

• OI in the Americas decreased due to personnel and other inflation-driven cost increases.

  Overview

  	FY24	FY25	Change
  				YoY
  Mechatronics Sales Consumables Sales	7,559 11,632	9,743 11,729	+2,184 +97	+28.9% +0.8%
  Total Sales	19,191	21,473	+2,281	+11.9%
  Gross Profit Gross Profit %	8,691 45.3%	9,380 43.7%	+689 -1.6pt	+7.9% -
  Operating Income	773	1,036	+263	+34.0%
  Operating Income %	4.0%	4.8%	+0.8pt	-

  Mechatronics: Hardware (e.g., printers, print and apply systems, scanners, hand labelers), software, maintenance services, etc. Consumables: Variable information labels, RFID tags, primary labels (product labels), ribbons, etc.

  Major Gains/Losses in OI

  （Millions of JPY）

  Sales

• Mechatronics: Sales increased, driven by a large strategic project and successfully captured demand related to the revised logistics efficiency laws. Strong demand in manufacturing continued, driven by investments in efficiency improvements.

• Consumables: Sales increased on

  firm overall demand.

  Operating Income

  • Positive factors

    +920

    -180

  • OI increased due to the abovementioned sales increases, an improved product mix, higher printer exports and effective management of SG&A expenses.

• Negative factors

-425

・Large strategic project

・GP on exports

・Product mix

-52

・Logistics

・Manufacturing

・HR capital investments

・New IT infrastructure

・R&D costs

1,036

FY24

FX Impact FY25

SG&A

Net Sales

Gross Profit, etc.

Excludes impact of FX

* Apr-Sep results are shown on p. 43. 13

Quarterly Sales and Operating Income

25,000

20,000

15,000

10,000

5,000

0

Sales (LHS) OI (RHS)

（Millions of JPY）

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

FY23

FY24

FY25

2,000

1,500

1,000

500

0

-500

14

• ：Mechatronics ■：Consumables (% indicates YoY changes)

  (Millions of JPY)

  Manufacturing *3

  5,657

  -1.8%

  5,556

  +8.3%

  6,020

  3,625

  3,584

  3,592

  2,031

  1,971

  2,427

  8,000

  6,000

  4,000

  Net Sales

2,000

0

FY23 FY24 FY25

Production of advanced semiconductors remained strong, driven by elevated demand for generative AI. Investment in efficiency improvements continued as severe labor shortages increased the need for digital transformation.

Consumables sales increased in almost all industries. Mechatronics sales increased, driven by high-value projects for print and apply solutions in the chemical industry and steady demand in the automobile industry. Packaged software sales also contributed to the growth.

* 1 Apr-Sep results are shown on p. 44.

Logistics *4

+25.5%

+3.6% 5,438

4,183

4,334

3,046

2,981

3,004

1,202

1,329

2,391

8,000

6,000

4,000

2,000

0

FY23 FY24 FY25

Overall demand was strong, driven by increased flow of goods from brisk e-commerce and inbound tourism. Labor shortages and the revised logistics efficiency laws, which limit truck drivers’ overtime, continued to drive demand.

Consumables sales increased in almost all industries on rising demand from higher freight volumes. Mechatronics sales grew significantly, driven by a large strategic project, the need to meet the revised logistics efficiency laws, and sustained demand from inbound tourism.

Retail

2,399

+17.1%

2,809

+15.5%

3,244

756

961

1,160

8,000

6,000

4,000

2,000

0

FY23 FY24 FY25

In-store investments at supermarkets for digital transformation and efficiency gains continued to be strong. Investments in ecommerce are robust as well.

Consumables sales increased on robust merchandise retail sales from inbound tourism. Mechatronics sales also increased, led by large projects from specialty stores and merchandise retailers.

15

* 2 Since Q1 FY24, maintenance support sales are partially included in the mechatronics business. The graphs have been adjusted retrospectively.

* 3 Since Q1 FY25, sales from the manufacturing and public verticals have been combined. The graphs have been adjusted retrospectively.

• ：Mechatronics ■：Consumables (% indicates YoY change) (Millions of JPY)

Health Care

2,472

+0.5%

2,486

-0.3%

2,477

1,541

1,675

1,594

930

810

883

3,000

2,000

Food & Beverage

2,049

+4.0%

2,131

-4.9%

2,026

1,500

1,472

1,386

549

658

640

3,000

2,000

1,000

0

FY23 FY24 FY25

1,000

0

FY23 FY24 FY25

Brisk investments in RFID continued to improve administrative efficiency and to combat labor shortages. Demand is strong overall.

Consumables sales decreased year-on-year, due to the lack of the one-off high-value project recorded in the prior year, despite high demand for RFID solutions that was successfully captured.

Mechatronics sales increased, driven by high-value projects involving RIFD and print and apply solutions in hospital and pharmaceutical industries.

* 2 Since Q1 FY24, maintenance support sales are partially included in the mechatronics business. The graphs have been adjusted retrospectively.

* 1 Apr-Sep results are shown on p. 44.

Robust demand for automation and RFID solutions continued, as higher raw materials and logistics costs and severe labor shortages keep affecting businesses.

Consumables sales decreased due to lower sales of specific

products in the food manufacturing industry.

In mechatronics, sales remained almost flat, as higher sales of packaged software for traceability offset the lack of the one-off high-value projects recorded in previous year.

16

Demand for RFID and Automation solutions continued to be strong on elevated needs for digital transformation to address labor shortages, among others.

RFID solutions sales declined due to the lack of the one-off large orders in the food market recorded previous year, despite the solid sales of packaged software across all verticals.

Automation solutions sales decreased year on year, reflecting a temporary slowdown across verticals.

(Millions of JPY)

RFID

Q2 FY25: -3.0% YoY

Automation*

Q2 FY25: -27.8% YoY

1,500

Mechatronics

Consumables

1,500

1,000

1,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY23 FY24 FY25

500 500

0 0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY23 FY24 FY25

* Automation includes hardware and software sales (but not consumables, service and maintenance sales).

Demand for RFID and Automation solutions continued to be strong, driven by labor shortages and robust demand for digital transformation.

RFID solutions sales were up year on year, boosted by high-value projects in manufacturing.

Automation solutions sales grew, driven by a high-value logistics project in the US. In addition, strong demand in Asia, spurred by

skilled labor shortages and rising labor costs, contributed to overall growth.

(Millions of JPY)

RFID

Q2 FY25: +16.5% YoY

Automation*

Q2 FY25: +17.8% YoY

1,500

Mechatronics

Consumables

1,000

1,000

500

500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY23 FY24 FY25

0 0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY23 FY24 FY25

* Automation includes hardware sales only.

(Millions of JPY)

←FY24

* EBITDA = Operating Income + Depreciation + Amortization (Incl. Goodwill) FX rate assumption for FY25: JPY 147/USD, JPY 170/EUR (Initially: JPY 140/USD, JPY 160/EUR )

Average FX rates for Apr-Sep FY25: JPY 146.02/USD, JPY 168.05/EUR Average FX rates for Apr-Sep FY24: JPY 152.78/USD, JPY 166.06/EUR

Full-year consolidated operating income has been revised downward by JPY 1,500 million.

Breakdown of revised OI: Overseas base business +JPY 200 million, Overseas primary labels business -JPY 1,700 million, Japan business +JPY 100 million, eliminations -JPY 100 million

(Millions of JPY)

Apr-Sep Operating Income vs. Initial plan

Overseas business: OI for the Americas and Asia/Oceania was above the plan, but this was not enough to offset the decrease in OI in the primary labels business.

Japan business: OI was higher than the plan due to strong sales of mechatronics and effective management of SG&A expenses.

(Millions of JPY)

Overseas business Japan business

+240

-20

1,900

1,300

+210 -160 +200 -1,200

+380

3,250

Apr-Sep Initial plan in FY25 The Americas Europe Asia and Oceania Primary business Apr-Sep Resluts

Base business

Apr-Sep Initial plan in FY25 Sales Gross profit and others SG&A expenses Apr-Sep Results

21

Auto-ID Solutions Business (Consolidated)

Apr-Sep

Overseas

Oct-Mar Outlook by Region and Vertical

Japan

* 1: SATO AEP CLOUD is a trademark registered in Europe.

* 2: DPP (Digital Product Passport): A mechanism for digitally managing and sharing information on the environmental impact of products and the supply chain. 22

Dividends

Interim dividend payment of 38 yen is scheduled. (up JPY 1 YoY)

(Unit: JPY)

(JPY per share)

90

80

70

60

50

40 33 33 33 34 35 37

Payout ratio

We aim to provide a stable and growing dividend

per share by enhancing corporate value.

45

40

70 70

65

60

5

5

70 70

72 73 75 76

30 22 23 24

17

20

10

28 30 31 32

FY25 breakdown (Forecast)

Interim dividend: JPY 38

Year-end dividend: JPY 38

Total: JPY 76

0

99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Dividend policy to maintain or increase dividend per share each year

25 （FY）

25

23

Jul-Sep 2025 ResultsBusiness Strategy Review

24

A global production and sales network built on a business founded in 1979 and supported by specialized overseas subsidiaries within our corporate group

Objectives of M&A and Investments We Conduct

• Optimize production and supply networks

• Acquire advanced printing and finishing capabilities

• Capture emerging market opportunities

• Acquire a brand owner customer base

• Create value through synergies among group companies

  Major manufacturing sites for primary labels (Blue indicates countries and regions where our subsidiaries are located)

  • Prakolar (Brazil)

  • Achernar (Argentina)

• SATO (Japan)*1

• Hirich (Vietnam)

  *1: Primary labels-related products in Japan are classified as

  “consumables” in the base business.

  (millions of JPY)

  Americas Sales

  30,000

  20,000

  Sales and Operating Margin Trends of Overseas Primary Labels Business: *2

  30%

  20%

  Europe Sales
  Asia & Oceania Sales
  Overseas Primary OI Margin

  10,000

  10%

  0 0%

  FY18 19 20 21 22 23 24 25（Plan*3）

  Previous MTMP

  Current MTMP

  25

  *2: Figures include only the five companies dedicated to the primary labels business (Okil, X-Pack, , Prakolar, Achernar and Hirich). Sales and OI from primary labels at other group companies/organizations are excluded.

  Producing high value-added labels such as adhesive labels, shrink sleeves*¹ and in-mold labels*² with advanced printing equipment

  *1: Shrink sleeves: Labels applied to bottles or containers with heat to shrink them.

  *2: In-Mold: A labeling method where a label is placed into a mold together with materials that are molded into a container.

  Company Name	# of Factori es	Stake Acquired / Business Started in	Key Verticals	Strengths
  Okil-Holding, JSC (Russia)	4*3	Stake acquired in 2014
  Prakolar Rótulos Autoadesivos Ltda. (Brazil)	1	Stake acquired in 2015
  Achernar S.A. (Argentina)	1	Stake acquired in 2012		customer network
  High Rich Trading & Service Corporation (Vietnam)	1	Stake acquired in 2017
  SATO Corporation (Japan)	4*4	Business started in 1979

  • Beverages (including alcohol)

  • Cosmetics, Personal Care Products

  • Food

  • Provides premium labels mainly to major domestic brands

  • Strength in alcoholic beverages (e.g., high-end spirits) industry

  • One of the largest label manufacturers in Russia

  • Pharmaceuticals

  • Cosmetics, Personal Care Products

  • Beverage

  • Automotive-related

  • Recognized for superior quality in pharmaceutical labeling (9-time winner of Sindusfarma Quality Award)

  • Among the top 5 companies in Brazil’s label market

  • Cosmetics, Personal Care Products

  • Food, Beverage

  • Versatility to cater to diverse industry needs with broad

  • Direct supplier to many major global companies

  • Personal Care Products

  • Electrical Products, Electronic Parts

  • Food, Beverages

  • Serves a wide range of industries with focus on household goods (personal care, food and beverage), and electrical and electronics

  • Food, Beverage (including alcohol)

  • Focused on adhesive labels production and sales

  • Nationwide sales network and label design capabilities

  *3: Includes production sites of affiliated company X-Pack in Russia

  *4: Includes partner factories that are not completely dedicated to primary labels production (i.e. produce other labels) 26

  Smart Packaging — New field where we create new value by combining technologies used in

  consumables, primary labels and RFID

  What Is Smart Packaging?

  A next-generation packaging solution that combines auto-ID and digital technologies (RFID, NFC, 2D codes, AR, etc.) with additional functionalities to enable the visualization of information, enhance data connectivity and create added value.

  The global smart packaging market size is expected to reach approximately JPY 6.5 trillion by 2030, with an average annual growth rate of 6.2%.*

  Application Areas

  Customer Engagement

  Brand Experience

  Authentication / Opening Detection

  Supply Chain Integration

  Traceability

  Inventory Management

  SATO’s strengths in smart packaging

  1. Labeling and label design solutions that integrate auto-ID technologies into packaging

  2. Capabilities to design Information architecture (including flows of information) and offer data linkage across the supply chain

  3. Creation of value in customer operation/experience through enabling use of collected data

  4. Global deployment with localized adaptability

*Source: Grand View Research, Smart Packaging Market Size, Share & Trends Analysis Report by Technology, 2024–2030

27

Increase the ability to replicate sales growth through the creation of efficient solutions and collaboration across locations

• Increase recurring sales of consumables

  Achieve stability and growth in recurring consumable business.

• Redefine the roles and functions of HQ and sales offices

  Enhance customer service capabilities through a global key account

  network.

  Ratio of recurring business: Trend and target

  FY23 24

  26

  • KPI: Increase ratio of recurring business (consumables + servicing) to 60% or higher by FY2026

  • Implemented Manufacturing Execution System in Europe; Further implementation planned for Oceania, the U.S. and Thailand.

  • Capital investment in equipment related to RFID and linerless labels under consideration for 2H

  60％

  56％ 55％

  • Several high-potential negotiations with global key account are in progress for H2, and full-year targets are expected to be achieved.

  • Enhanced information sharing among sales companies has led to additional opportunities beyond key accounts (grew about 2.1 times year-on-year).

  • Driving stronger sales focus on capturing recurring sales of consumables.

• Develop locally optimized solutions

  • Southeast Asia: Rising labor costs and the need for consistent work quality are driving demand for automation, which led to strong growth with a CAGR of 23% (FY18–24)

  • Europe: In response to DPP compliance requirements, a cloud-based platform (SATO AEP CLOUD) was developed to enable product data linkage and traceability. Sales activities for DPP-related solutions began in FY2025, with further expansion scheduled from Q3 onward.

  Provide localized solutions such as automation in Southeast Asia and DPP *¹-compliant solutions in Europe.

• Expand the solution deployment

  Deployed blood bag management solutions with a proven track record in Asia into European health care and clinical markets.

  • Sales value for FY25 is project to be 7 times that of FY24. Enhanced RFID “PJM”*3 RFID (withstands radiation in the medical sterilization, offers high read accuracy) has been highly evaluated

  • Specialists with health care expertise have been deployed globally to support expansion in key markets.

  • A new manufacturing method for PJM RFID has been developed, which offers technical and cost advantages; patent pending.

  The number of projects is steadily growing.

  *1: DPP (Digital Product Passport): Digital tool to collect and provide product-related data, including those on environmental friendliness, across supply chain

  *2: SATO AEP CLOUD is a trademark registered in Europe.

  *3: PJM: See SATO terminologies.

  28

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  Strengthening cross-functional collaboration to ensure consistent profitability and build foundation for

  sustainable growth

  • Capture demand in key markets

    Address automation and efficiency needs that has intensified with revised logistics efficiency laws; adoption of “IritoDe” continues to grow in manufacturing.

  • Shift to profit-based evaluation for sales department

    Promote stronger profit awareness across sales and service teams, driving closer collaboration and more effective use of data.

    Grew 4.7 times in two years

Sales Amount

FY23 1H 24 1H 25 1H

• With Japan’s so-called 2024 logistics problem driving change, manufacturers are seeking greater automation and labor efficiency at their shipping sites.

  • Driving printer refresh proposals through collaboration between sales and maintenance teams; the maintenance division achieved 200% of its refresh target in the first half.

  • Using OI reports to visualize sales and

  profitability by sales site, supporting management

  and decision-making at each site.

• Adoption of “IritoDe,” packaged software that streamlines receiving and shipping process and inventory management, has expanded, recording

  4.7x increase in sales amount over two years.

  • Strengthen value chain management

Adopt a product organizational structure in which development, manufacturing and sales are grouped around each specific product segment to better optimize operations and ensure high profitability.

• Launch of new printer model

CL4/6-SXR, the first model to adopt the common platform, will be released in January 2026.

Sales Volume

Sales Volume by Printer Model

Number of Models

• Integrated development process, and inventory and supply planning under a common platform.

  • The flagship model accounts for approximately 56% of our sales in manufacturing. The release coincides with the timing of refresh cycle; aiming to capture the demand effectively.

  • Moving from traditional “preventive maintenance,” which relies on usage-based criteria, to “predictive maintenance” that uses analysis of data on operating conditions and the like, to detect early signs of failure.

  • Global sales target: approx. 300,000 units (FY25-30).

• Considering streamlining the current 48 models into an optimized lineup, adding new models to enhance overall portfolio efficiency.

• Improve development efficiency and inventory turnover to enhance capital efficiency to reflect the company’s focus on ROIC.

Appendix

Performance data Pages 31-50 SATO terminologies Pages 51-54