Sato Corporation TSE:6287
Sato : Financial Results Briefing Materials for 2nd Quarter of FY2025 (with summarized script)
Source: MarketScreener
November 12, 2025
SATO Corporation
Q2 FY2025 Financial Results
(Six Months Ended September 30, 2025)
Securities Code: 6287.T
Copyright © SATO Corporation. All rights reserved.
Jul-Sep 2025
Results
Business Strategy Review
2
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Jul-Sep 2025
Results
Business Strategy Review
3
Copyright © SATO Corporation. All rights reserved.
4
Copyright © SATO Corporation. All rights reserved.
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.
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.
Auto-ID Solutions Business (Consolidated)
Quarterly results for Q2:
Year-on-year, consolidated sales increased while operating income decreased. The percentages in parentheses show year-on-year comparisons.
Sales increased overall, as sales growth in Japan, driven by a large strategic project in logistics and strong performance in manufacturing, offset the sales decline in the overseas primary labels business.
OI decreased on a consolidated basis, as higher OI in Japan could not fully offset the
impact of lower OI in the overseas primary labels business.
Compared to the plan:
Consolidated sales fell short of the plan mainly due to the underperformance in the overseas primary labels business.
Operating income:
The Japan business performed better than the plan, driven by mechatronics sales in manufacturing and logistics. Results from factories in Asia and Oceania were also better than the plan.
However, sales in the primary labels business in Russia decreased due to reduced demand for beverages and other products due to the cold summer and an increase in personnel and other costs due to inflation. As the result, consolidated OI fell short of the plan.
Downward revision made to the consolidated OI plan for the full year
The consolidated OI forecast has been revised downward due to the lower-than-planned OI of the primary labels business. On the other hand, OI forecasts of the overseas base business and the Japan business have been revised upward based on the 1H results.
Details are provided in later slides.
FY24 | FY25 | YoY | |||||
In local currencies | |||||||
Consolidated | Total Sales | 38,415 | 40,418 | +5.2% | +4.5% | ||
Operating Income | 2,914 | 2,741 | -5.9% | -3.9% | |||
Overseas | Base | Total Sales | 12,806 | 13,022 | +1.7% | +1.4% | |
Operating Income | 1,053 | 1,133 | +7.6% | +7.9% | |||
Primary Labels | Total Sales | 6,416 | 5,922 | -7.7% | -11.4% | ||
Operating Income | 1,290 | 468 | -63.7% | -63.4% | |||
Eliminations | Operating Income | -40 | 24 | - | - | ||
Total | Total Sales | 19,223 | 18,944 | -1.4% | -2.9% | ||
Operating Income | 2,303 | 1,626 | -29.4% | -29.1% | |||
Japan | Total Sales | 19,191 | 21,473 | +11.9% | +11.9% | ||
Operating Income | 773 | 1,036 | +34.0% | +40.9% | |||
Eliminations | Operating Income | -162 | 78 | - | - | ||
（Millions of JPY）
* 1 Apr-Sep results are shown on p. 32.
* 2 Sales and OI excluding Russian subsidiaries are shown on p. 45.
5
Copyright © SATO Corporation. All rights reserved.
Jul-Sep* 1
Auto-ID Solutions Business (Consolidated)
The analyses are in principle presented on a year-over-year basis.
The actual performance figures for what is described in the ”Summary" on the previous slide are shown in the table.
For Jul-Sept results excluding those of the Russian subsidiaries, please refer to page 45.
For Jul-Sept results of the Russian subsidiaries, please refer to the European primary label business figures shown on page 12.
FY24
FY25
Change
YoY
Net Sales
38,415
40,418
+2,002
+5.2%
Operating
Income
2,914
2,741
-172
-5.9%
Operating Income %
7.6%
6.8%
-0.8pt
-
Ordinary Income
2,471
2,574
+102
+4.2%
Profit attributable to
owners of parent
1,830
1,841
+10
+0.6%
Effective Tax Rate 16.8%
27.2%
+10.4pt -
EBITDA*
4,271
4,246
-24
-0.6%
6
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.
* 2 Sales and OI excluding Russian subsidiaries are shown on p. 46. Copyright © SATO Corporation. All rights reserved.
Jul-Sep* 1
Auto-ID Solutions Business (Consolidated)
Consolidated resultsIn Q2 (Jul–Sep) FY24, the effective tax rate was low at the end of September, due to the appreciation of JPY against various currencies. In Q2 FY25, the rate returned to normal levels.
OverviewFY24
FY25
YoY
In local currencies
Base business Total Sales
Primary Lablels business Total Sales
12,806
6,416
13,022
5,922
+215
-494
+1.7%
-7.7%
+1.4%
-11.4%
Total Sales
19,223
18,944
-278
-1.4%
-2.9%
Gross Profit
Gross Profit %
7,490
39.0%
7,182
37.9%
-308
-1.1pt
-4.1%
-
-
-
Base business Operating Income
Primary Lablels business Operating Income Elimination Operating Income
1,053
1,290
-40
1,133
468
24
+79
-821
+65
+7.6%
-63.7%
-
+7.9%
-63.4%
-
Operating Income
2,303
1,626
-676
-29.4%
-29.1%
Operating Income %
12.0%
8.6%
-3.4pt
-
-
（Millions of JPY）
Change
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
Positive factors
Negative factors
+64
-405
-330
The Americas primary labels
Asia/Oceania base business
The Americas base business
Europe primary labels
Europe primary labels
Europe base business
The Americas base
business
-6
Operating Income
OI in the base business increased due to strong performance in the Americas and Asia/Oceania.
OI in the primary labels business declined due to increased costs in Europe.
FY24
Net Sales
Gross Profit, etc.
Excludes impact of FX
SG&A
FX Impact
FY25
* Apr-Sep results are shown on p. 38.
7
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Jul-Sep*
Auto-ID Solutions Business (Overseas)
1,626
The Americas primary labels
The Americas and Europe primary labels
Europe base business
2,303
Overseas business recorded lower sales and OI year on year.
Sales increased in the base business, driven by positive currency impact at the European sales subsidiaries and strong performance at the Asian/Oceanian sales subsidiaries.
Sales in the primary labels business declined as the competitive environment in Russia returned to its normal state before the conflict in Ukraine (Feb. 24, 2022) and beverage demands fell due to a cold summer.
OI increased in the base business, supported by strong performance at sales subsidiaries in the Americas and Asia/Oceania, and factories in Asia/Oceania.
OI decreased in the primary labels business due to cost increases in Russia and South America.
Further details by region are provided in the following slides.
Quarterly Sales and Operating IncomeSales
16,452
17,104
17,648
16,725
19,321
19,223
19,104
17,937
18,737
18,944
YoY
+0.4%
-7.5%
-5.3%
+10.4%
+17.4%
+12.4%
+8.2%
+7.2%
-3.0%
-1.4%
OI
2,169
2,346
2,490
1,238
2,586
2,303
2,405
1,183
1,629
1,626
YoY
2.4x
+11.2%
-5.6%
-14.3%
+19.2%
-1.8%
-3.4%
-4.4%
-37.0%
-29.4%
Sales (LHS)
OI (RHS)
30,000
25,000
20,000
15,000
10,000
5,000
0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
（Millions of JPY）
3,000
2,500
2,000
1,500
1,000
500
0
Q2
FY23
FY24
FY25
8
Copyright © SATO Corporation. All rights reserved.
Jul-Sep
Auto-ID Solutions Business (Overseas)
Quarterly trend (Overseas)Jul-Sep*
Auto-ID Solutions Business (Overseas)
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
FY24
FY25
Change
YoY
In local currencies
Total Sales
4,294
4,315
+20
+0.5%
+2.9%
Operting Income
54
133
+79
2.5x
2.6x
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.
6,000
Sales (LHS) OI (RHS)
600
4,000
2,000
0
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
Q1 Q2 Q3 Q4 FY23
Q1 Q2 Q3 Q4 FY24
Q1 Q2
FY25
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.
* Apr-Sep results are shown on p. 39.
9
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Regional Performance of the Base Business ― The Americas
In the Americas, both sales and OI increased.
Sales drivers included:
Increased sales from high-value projects for print and apply systems in logistics, despite the unfavorable exchange rates in the US.
Pharmaceutical labels project in health care.
In South America, demand was brisk despite the high inflation, but sales were down,
impacted by unfavorable exchange rates.
OI increased overall, due to:
Increased sales from the above-mentioned high-value projects and effective SG&A control in the U.S., which absorbed the increase in costs associated with the discontinuation of the current printer model, including those for new printer development and labor and personnel expenses in the U.S.
However, in South America, OI decreased due to rising labor and personnel costs caused by high inflation.
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%
Base Business — EuropeSales
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%
（Millions of JPY）
Quarterly Sales and Operating Income
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.
Sales (LHS)
OI (RHS)
3,400
600
3,200
400
3,000
2,800
200
2,600
2,400
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY23 FY24
FY25
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.
* Apr-Sep results are shown on p. 39.
10
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Jul-Sep*
Auto-ID Solutions Business (Overseas)
Regional Performance of the Base Business － EuropeSales increased while OI decreased.
Sales increased due to the positive impact of foreign exchange rates, despite a challenging demand environment in Europe, where overall investment appetite was subdued amid the economic downturn, affecting key verticals such as retail and food & beverage.
Overall, performance in the health care vertical was strong, supported by robust demands for PJM RFID labels.
OI deceased, as the impact of increased sales and an improved sales mix from the strong
performance in health care, where margins are high, was insufficient to cover:
Increased costs due to rising labor and personnel costs.
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%
Base Business — Asia/OceaniaSales
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%
（Millions of JPY）
Sales (LHS)
Quarterly Sales and Operating Income
OI (RHS)
8,000 1,500
6,000
1,000
4,000
500
2,000
0
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY23 FY24 FY25
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.
* Apr-Sep results are shown on p. 39.
11
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Jul-Sep*
Auto-ID Solutions Business (Overseas)
Regional Performance in Base Business — Asia and Oceania
Both sales and OI increased in Asia and Oceania.
Sales drivers included:
Continued strong performance in large RFID projects at the Australian sales subsidiary.
Contribution from Chinese sales subsidiaries, supported by rush demands before the
U.S. tariff hike and strong direct sales of solutions and maintenance services, despite the challenging macroeconomic environment.
Continuing on from Q1 (Apr-Jun), Argox in Taiwan suffered from decreased demands
resulting from overstocking in its indirect sales channels.
OI drivers included:
Sustained strong printer exports that boosted profitability at the Vietnamese factories.
Improved sales from the above-mentioned sales drivers.
Jul-Sep*
Auto-ID Solutions Business (Overseas)
Primary Labels BusinessFY24
FY25
Change
l l i
YoY
In oca currenc es
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%
* Includes the impact of IAS 29, Financial Reporting in Hyperinflationary Economies ("Hyperinflation Accounting") in Argentina.
Quarterly Sales and Operating Income
Sales (LHS) OI (RHS)
8,000
6,000
4,000
2,000
0
（Millions of JPY）
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
Q1 Q2 Q3 Q4
FY23
Q1 Q2 Q3 Q4
FY24
Q1 Q2
FY25
capital investment in production equipment and higher personnel
Sales
4,676
5,297
5,226
4,661
5,966
6,416
5,775
4,796
6,109
5,922
expenses.
YoY OI
-1.7% -6.2% -14.6% +2.5%
1,118 1,509 1,136 775
+27.6% +21.1% +10.5% +2.9%
1,301 1,290 1,198 409
+2.4% -7.7%
561 468
OI in the Americas decreased due to personnel and other inflation-driven cost increases.
YoY
4.3x
+55.2%
-18.9%
-29.5%
+16.4%
-14.5%
+5.4%
-47.2%
-56.9%
-63.7%
* Apr-Sep results are shown on p. 40.
12
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Performance of the Primary Labels Business (Overseas)
Both sales and OI decreased.
In Europe, sales in Russia decreased as the competitive environment in Russia returned to its normal state before the conflict in Ukraine (Feb. 24, 2022), and as demands for beverages declined due to the cold summer even though the drops in the demand for alcoholic beverages caused by tax regulation changes are moderating.
In South America, sales increased due to the development of new customers, despite an
inflationary environment and the depreciation of the local currencies against the yen.
Overall OI declined due to:
The above-mentioned declines in sales in Russia.
Increases in labor and other costs associated with production capacity/equipment enhancement for supporting a broader product lineup.
Increases in costs, including inflation-driven labor/personnel costs, in South America.
OverviewFY24
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
-
（Millions of JPY）
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.
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.
Major Gains/Losses in OI
Positive factors
Negative factors
+920
-180
-425
・Large strategic project
・GP on exports
・Product mix
-52
Operating Income
OI increased due to the abovementioned sales increases, an improved product mix, higher printer exports and effective management of SG&A expenses.
・Logistics
・Manufacturing
・HR capital investments
・New IT infrastructure
・R&D costs
1,036
FY24
Net Sales
Gross Profit, etc.
Excludes impact of FX
SG&A
FX Impact
FY25
* Apr-Sep results are shown on p. 43.
13
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Jul-Sep*
Auto-ID Solutions Business (Japan)
773
Both sales and OI increased.
In mechatronics:
Sales grew, driven by a large strategic project in logistics and demand related to compliance with the revised logistics efficiency laws.
Demand remained strong in manufacturing due to continued investment in operational efficiency.
Increased sales of packaged software also contributed to the sales growth.
In consumables:
Sales increased due to solid demand overall.
OI increased as a result of:
Sales growth mentioned above,
Improved product mix, and
Continued efforts to manage SG&A expenses.
However, OI was adversely affected by the appreciation of the Malaysian Ringgit (MYR) from a year-ago period, as some of our printer factories are in Malaysia.
Quarterly Sales and Operating IncomeSales
17,536
18,692
19,980
19,305
18,353
19,191
21,016
20,658
19,091
21,473
YoY
+1.4%
+2.2%
+3.8%
-0.2%
+4.7%
+2.7%
+5.2%
+7.0%
+4.0%
+11.9%
OI
-210
106
927
901
186
773
1,824
1,123
864
1,036
YoY
-
-88.7%
-16.4%
+51.5%
-
7.3x
+96.8%
+24.6%
4.6x
+34.0%
Sales (LHS)
OI (RHS)
25,000
20,000
15,000
10,000
5,000
0
（Millions of JPY）
2,000
1,500
1,000
500
0
-500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY23
FY24
FY25
14
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Jul-Sep
Auto-ID Solutions Business (Japan)
Quarterly trend (Japan)Sales by Vertical 1/2 *2：Mechatronics ■：Consumables (% indicates YoY changes)
(Millions of JPY)
Manufacturing *3
8,000
+8.3%
Logistics *4
8,000
Retail
8,000
6,000 5,657
-1.8%
5,556
6,020
6,000
+3.6%
+25.5%
5,438
6,000
4,000
3,625
4,183
4,334
3,584
3,592
4,000
3
,046
4,000
3,004
2,000
2,000
2,981
2,000
2,031
1,971
2,427
2,391
0 0
1,202
FY23
1,329
FY24
0
FY23
FY24
FY25
FY25
2,399
1,643
756
FY23
+17.1%
2,809
1
961
FY24
+15.5%
3,244
2
1,160
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.
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.
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 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.
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.
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.
* 1 Apr-Sep results are shown on p. 44.
* 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.
* 4 Since Q1 FY23, some industries have been reclassified from the public vertical to the logistics vertical. The graphs have been adjusted retrospectively.
15
Copyright © SATO Corporation. All rights reserved.
Jul-Sep* 1
Auto-ID Solutions Business (Japan)
SATO
Business environment
,848
,084
Net Sales
- Manufacturing:
Sales increased overall as demand for generative AI grew in a trend that continued from Q1 (Apr-Jun), resulting in strong production of advanced semiconductors and increased sales in electronic component industry, among others.
Consumables sales increased across most industries.
Mechatronics sales were up, driven by high-value projects for print and apply systems in the chemical industry and steady growth in small- and medium-sized projects in the automotive industry.
In addition, sales of packaged software for incoming and outgoing shipments also
contributed to the growth.
- Logistics:
Sales in logistics remained strong for both consumables and mechatronics products, driven by increased freight volumes and the demand created by the revised logistics efficiency laws.
Sales of mechatronics products benefited greatly from a large strategic project.
In addition, sales of printers used in tourist luggage delivery services also continued to grow, driven by brisk inbound tourism.
- Retail:
Continuing from Q1 (Apr-Jun), consumables sales remained strong, thanks to a recovery in the general merchandize retail driven by the robust inbound tourism.
Sales of mechatronics products increased, driven mainly by high-value projects for:
Label printers used for inventory management in inter-store transfers at specialty
stores.
Security measures at general merchandise retailers.
2,472 +0.5% -0.3%
2,486 2,477
1,
541
1,
675
1,
594
930
810
883
Sales by Vertical 2/2 *2+4.0% -4.9%
2,049 2,131 2,026
1,
500
1,
472
1,
386
549
658
640
：Mechatronics ■：Consumables (% indicates YoY change)
(Millions of JPY)
Health Care
3,000
Food & Beverage
3,000
2,000
2,000
1,000
1,000
0
0
FY23 FY24 FY25 FY23
FY24
FY25
Brisk investments in RFID continued to improve administrative
efficiency and to combat labor shortages. Demand is strong overall.
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 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.
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.
* 1 Apr-Sep results are shown on p. 44.
* 2 Since Q1 FY24, maintenance support sales are partially included in the mechatronics business. The graphs have been adjusted retrospectively.
16
Copyright © SATO Corporation. All rights reserved.
Jul-Sep* 1
Auto-ID Solutions Business (Japan)
SATO
Business environment
Net Sales
- Health care:
Consumable sales decreased, as brisk RFID solution sales were not sufficient to make up for the absence of high-value projects in the year-ago period.
Mechatronics sales increased in the medical equipment and hospital industries, driven by demand for efficiency gains through RFID and automation solutions.
- Food & Beverage
Consumables sales declined, affected by the lower sales of specific products in the food manufacturing industry.
Mechatronics sales were flat, as the decline caused by the absence of the previous year’s large traceability project was largely offset by increased sales of traceability-related packaged software.
- Overall:
Though quarterly results are impacted by the timing of large projects, overall demand remained strong across all industries.
RFID and Automation SalesDemand 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 Automation*
1,500
Mechatronics
Q2 FY25: -3.0% YoY
Consumables
Q2 FY25: -27.8% YoY
1,500
1,000
1,000
500
500
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY23 FY24 FY25 FY23 FY24 FY25
* Automation includes hardware and software sales (but not consumables, service and maintenance sales).
17
Copyright © SATO Corporation. All rights reserved.
Jul-Sep
Auto-ID Solutions Business (Japan)
Quarterly Sales Trends of RFID and Automation Solutions (Japan)Demand remains robust.
RFID sales declined, although sales of packaged software and other products were strong in all vertical, they were not enough to offset the year-on-year decline caused by the absence of the previous year’s high-value project in food & beverage.
Automation solutions sales also decreased, due to a temporary slowdown as customer investment plateaued across verticals.
RFID and Automation SalesDemand 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 Automation*
Q2 FY25: +16.5% YoY
Consumables
Q2 FY25: +17.8% YoY
1,500
Mechatronics
1,000
1,000
500
500
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY23 FY24 FY25
FY23
* Automation includes hardware sales only.
FY24
FY25
18
Copyright © SATO Corporation. All rights reserved.
Jul-Sep
Auto-ID Solutions Business (Overseas)
Quarterly Sales Trends of RFID and Automation Solutions (Overseas)Demand remains strong, driven by labor shortages and digital transformation efforts.
RFID solutions sales increased, driven by the ongoing high-value projects in manufacturing.
Automation solutions sales grew, boosted by large logistics projects in the U.S., despite some negative impact from economic slowdowns in Europe. In addition, shortages of skilled labor and rising labor costs due to the rapid growth of the manufacturing industry in Asia also contributed to the growth.
Apr-Sep
Oct-Mar
FY25
Results
YoY
Revised Plan
As of Nov 12, 2025
YoY
Initial Plan
As of May 15, 2025
Revised Plan
As of Nov 12, 2025
Change
YoY
Net Sales
78,248
+2.8%
82,751
+5.1%
161,000
161,000
+0
+4.0%
Operating
Income
5,101
-11.7%
5,898
-10.1%
12,500
11,000
-1,500
-10.9%
Ordinary Income
4,460
-8.7%
5,639
-9.9%
12,100
10,100
-2,000
-9.4%
Profit attributable to owners of parent
3,052
+0.8%
3,747
-9.1%
7,700
6,800
-900
-4.9%
FY25 Forecasts18,200
16,900
-1,300
-5.5%
(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
19
Copyright © SATO Corporation. All rights reserved.
Auto-ID Solutions Business (Consolidated)
17,884
EBITDA *
The consolidated forecasts were revised downward to reflect the H1 (Apr-Sep) results of the overseas primary labels business.
The assumed exchange rates for the full year have been revised from JPY 140 to JPY 147 for USD 1 and from JPY 160 to JPY 170 for EUR 1.
Further details are provided in the following slides.
FY25 ForecastsApr-Sep
Oct-Mar
FY25
Initial Plan
Results
Change
Initial Plan
Revised Plan
Change
Initial Plan
Revised Plan
Change
Overseas
(Base business)
Net Sales
26,520
25,650
-869
27,480
28,349
+869
54,000
54,000
+0
Operating
Income
1,980
2,251
+271
2,020
1,948
-71
4,000
4,200
+200
Overseas (Primary labels business)
Net Sales
12,080
12,032
-47
11,920
11,967
+47
24,000
24,000
+0
Operating
Income
2,220
1,030
-1,189
2,080
1,569
-510
4,300
2,600
-1,700
Overseas
(Eliminations)
Operating
Income
0
-26
-26
0
26
+26
0
0
+0
Overseas
Net Sales
38,600
37,682
-917
39,400
40,317
+917
78,000
78,000
+0
Operating
Income
4,200
3,255
-944
4,100
3,544
-555
8,300
6,800
-1,500
Japan
Net Sales
40,000
40,565
+565
43,000
42,434
-565
83,000
83,000
+0
Operating
Income
1,300
1,901
+601
2,900
2,398
-501
4,200
4,300
+100
Eliminations
Operating
Income
0
-56
-56
0
-43
-43
0
-100
-100
Consolidated
Net Sales
78,600
78,248
-351
82,400
82,751
+351
161,000
161,000
+0
Operating
Income
5,500
5,101
-398
7,000
5,898
-1,101
12,500
11,000
-1,500
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)
20
Copyright © SATO Corporation. All rights reserved.
Auto-ID Solutions Business (Consolidated)
FY25 ForecastsConsolidated OI was revised downward by JPY 1,500 mil.
OI breakdown: Overseas base business +JPY 200 mil, Overseas primary labels business
–JPY 1,700 mil, Japan business +PY 100mil, eliminations –JPY 100 mil.
Further details, including H1 (Apr–Sep) results vs. the initial plan and H2 outlook by region and vertical, are provided in the following slides.
Apr-Sep Operating Income vs. Initial planOverseas 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
+380
+210
-160
+200
-1,200
+240
-20
1,900
3,250
Apr-Sep Initial plan in FY25
The Americas
Europe
Asia and Oceania
Primary business
Apr-Sep Resluts
Apr-Sep Initial plan in FY25
Sales
Gross profit and others
SG&A expenses
Apr-Sep Results
Base business
21
Copyright © SATO Corporation. All rights reserved.
Apr-Sep
Auto-ID Solutions Business (Consolidated)
1,300
4,200
Overseas business:
OI fell short of the initial plan.
The Americas:
Performance exceeded the targets, thanks to the stronger-than-expected economy and effectively managed SG&A expenses.
Europe:
OI was lower than planned, due to the economic downturns that had more
impact than expected.
Asia and Oceania:
In Southeast Asia, sales were lower than expected, primarily affected by the
“reciprocal tariffs” imposed by the U.S.
OI in Asia and Oceania overall were higher than expected, supported by the ongoing large printer projects across regions which boosted the profitability of printer factories in Malaysia and Vietnam.
Primary labels business:
OI fell short of the plan, impacted primarily by higher-than-expected labor and personnel costs in Russia due to inflation, but also by unfavorable weather conditions and currency fluctuations.
Japan Business:
OI exceeded the initial plan, which is attributed to the following:
Mechatronics sales were stronger than expected in logistics and manufacturing.
SG&A expenses were well-controlled; however, the effect will be partially tempered by the delayed R&D expenditure which will be recognized later this fiscal year.
The next slide explains the outlook for H2 (Oct-Mar) by region and vertical.
The Americas
Europe
Asia/Oceania
Primary Labels
care to remain strong.
for DPP*2 (SATO AEP CLOUD*1)
expected.
continue to be strong.
The economy to remain firm, supporting solid demand.
Last-minute demand before U.S. tariffs to moderate.
Large business opportunities with key customers to remain firm due to labor shortages and other factors.
Sales of pharmaceutical labels in health
Investment remains sluggish due to the economic downturn, but is expected to recover gradually.
Demand for RFID solutions from medical device manufacturers to remain strong.
An increase in business opportunities
In Southeast Asia, export companies to continue to face challenges, but demand for RFID and print and apply solutions to remain strong.
In East Asia, the Chinese economy to remain sluggish.
In Oceania, large business opportunities to
Demand, which has fluctuated due to tax changes in Russia, is expected to normalize.
Market presence expected to increase as result of enhanced production equipment/capacity in Russia.
In South America, inflationary pressures are likely to persist, but demand to be captured through acquisition of new customers.
Manufacturing
Logistics
Retail
Health Care
Food & Beverage
An increase in small and medium-sized business opportunities expected to continue.
Last-minute demand before the U.S. tariffs expected to ease.
Strong demand for efficiency improvements, mainly in manufacturing and logistics, to continue, pushing up sales of packaged software.
The need to comply with the revised logistics efficiency laws to drive demand.
A large strategic project to continue.
Automation business opportunities created at exhibitions to be closed.
Investment appetite to remain robust, supported by strong performance of major retailers.
Investment in efficiency improvements, such as those realized with AI, expected to increase as companies address labor shortages.
Demand for operational standardization to grow further, driven by an increasingly diverse workforce and work styles.
Investment appetite among medical equipment and pharmaceutical manufacturers to remain strong.
Demand for efficiency solutions, such as print and apply systems, image verification system and RFID, to continue.
New RFID wristband solutions for three-point verification to be promoted.
Large business opportunities for print and apply systems expected.
Strong appetite for investment to remain, as companies seek to manage rising costs and labor shortages.
Demand for RFID to remain strong, supported by needs for managing raw materials and spare parts.
Demand for print and apply systems to be captured, particularly in shipping and packaging operations within the food manufacturing industry.
22
Overseas
Oct-Mar Outlook by Region and VerticalJapan
* 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.
Copyright © SATO Corporation. All rights reserved.
Oct-Mar
Auto-ID Solutions Business (Consolidated)
Oct-Mar Outlook by Region and VerticalOverseas:
The economic slowdowns in Europe and China is expected to continue.
The Americas:
Economy is expected to remain solid with steady demand, though partially
tempered by inflation caused by increases in “reciprocal tariffs.”
Overseas base business:
In the Americas and Oceania, high-value projects will continue.
In Europe and the U.S., business in health care is expected to be strong, continuing on from H1.
In Europe, the need to comply with regulations related to Digital Product Passport is expected to increase solutions business.
Primary labels business:
In Russia, demand fluctuations induced by tax rate changes will continue to abate.
In Russia, the enhanced production facilities will result in broader product lineups, which is expected to boost the market presence and the profit.
Overseas, inflation continues to drive up labor costs and other expenses; we intend to adjust product pricing as necessary, gauging situations in each region and country.
Japan:
Rush demands before the U.S. tariff hikes have slowed — particularly in
manufacturing — impacting our performance unfavorably.
However, packaged software sales in manufacturing and logistics is expected to remain strong.
Business is expected to be solid in other verticals as well.
Both Japan and overseas:
Investment appetite will be impacted by the macroeconomic environment;
However, investments aimed at addressing labor shortages and improving efficiencies remain steady, which is expected to continue to fuel demand for RFID, automation and other auto-ID technologies.
Quarterly results may fluctuate depending on the timings of high-value projects;
However, we will strengthen the recurring business to mitigate the impacts of demand fluctuations and stabilize the financial performance. The details are provided in later slides.
FY21
FY22
FY23
FY24
FY25
(Forecast)
EPS 112.7
126.7
110.0
220.4
209.5
ROE 6.3%
6.5%
5.2%
9.7%
8.6%
(Ref.) 62%
57%
66%
34%
36%
25
5
Dividends(JPY per share)
Interim dividend payment of 38 yen is scheduled.
(up JPY 1 YoY)
(Unit: JPY)
90
Payout ratio
80
75
76
70 70
70 70
72
73
70
65
60
60
5
50
45
40
34
35
37
40
28
30
31
32
33 33 33
FY25 breakdown (Forecast)
30
22
23
24
20
17
Interim dividend:
Year-end dividend:
Total:
JPY 38
JPY 38
JPY 76
10
0
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
* Dividend policy to maintain or increase dividend per share each year
25 （FY）
23
Copyright © SATO Corporation. All rights reserved.
22 23 24
Auto-ID Solutions Business (Consolidated)
We aim to provide a stable and growing dividend per share by enhancing corporate value.
Progressive Dividend Policy*
For FY25, we will provide an interim dividend of JPY 38 and a year-end dividend of JPY 38, which makes a yearly dividend of JPY 76 — JPY 1 higher than that of the previous fiscal year.
24
Copyright © SATO Corporation. All rights reserved.
Business Strategy Review
Jul-Sep 2025
Results
This section explains the progress we made in executing our business strategies.
While our core business continues to be the base business, this section addresses the other pillar of our business: the primary labels business.
Our primary labels business expanded mainly overseas. However, it is currently facing challenges due to changes in the business environment in some regions.
Given the current situations, we feel it is important to explain our primary labels business’s
positioning and its outlook.
The primary labels business has the potential to create new value not only through its own growth but also through synergies it creates with the base business. This section provides an overview of that potential.
25
A global production and sales network built on a business founded in 1979 and supported byspecialized overseas subsidiaries within our corporate groupSATO (Japan)*1
Hirich (Vietnam)
*1: Primary labels-related products in Japan are classified as “consumables” in the base business.
(millions of JPY) 30,000
30%
Sales and Operating Margin Trends of Overseas Primary Labels Business: *2
Americas Sales
20,000
20%
Europe Sales
Asia & Oceania Sales
10,000
10%
Overseas Primary OI Margin
0
FY18
19
20
21
22
23
24
0%
25（Plan*3）
Previous MTMP Current MTMP
*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.
*3: Revised plan as of Nov 12, 2025. Copyright © SATO Corporation. All rights reserved.
Overseas Business (Primary Labels)
Global Network of Our Primary Labels Business
Major manufacturing sites for primary labels (Blue indicates countries and regions where our subsidiaries are located)
Achernar (Argentina)
Prakolar (Brazil)
Okil (Russia)
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
We started production of the primary labels and stickers in Japan in 1979.
Since then, we have been honing our expertise while expanding our capabilities through M&A and taking stakes in other companies. Especially from the 2010s, we have acquired capabilities in Brazil and Argentina in South America, Russia in Europe, and Vietnam in Asia.
The purpose of these investments is not simply to increase production capacity, but to build a stable earnings base by optimizing production and procurement networks, acquiring advanced printing and finishing technologies and know-how, and capturing demand in emerging economies.
In addition, we are working to build a system that enables group companies to share technologies and customer networks, and leverage strengths of one another.
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
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 customer network
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
26
Producing high value-added labels such as adhesive labels, shrink sleeves*¹ and in-mold labels*²with advanced printing equipment*2: In-Mold: A labeling method
*1: Shrink sleeves: Labels applied to bottles or where a label is placed into a mold containers with heat to shrink them. together with materials that are
molded into a container.
*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)
Copyright © SATO Corporation. All rights reserved.
Overseas Business (Primary Labels)
Five Group Companies that Produce Primary Labels with Diverse Capabilities
Each subsidiary has a different founding background and areas of expertise, but they all share common strengths: a strong customer base centered on major brands and the ability to produce high-quality, high-value-added labels.
In addition to self-adhesive labels, each site also manufactures premium products such as shrink sleeves and in-mold labels.
In particular, the production facilities in Russia and South America are equipped with advanced printing equipment that can handle more diverse finishing and customization.
Shrink sleeves, for example, are labels that wrap around an entire beverage bottles, while in-
mold labels are integrated into plastic containers used for everyday items such as detergents.
Each subsidiary leverages its unique strengths to meet market needs. Going forward, we aim to further enhance our competitiveness through collaboration between them.
Future of Primary Labels Business
Synergy Between Base Business and Primary Labels Business
SATO’s strengths in smart packaging
Labeling and label design solutions that integrate auto-ID technologies into packaging
Capabilities to design Information architecture (including flows of
information) and offer data linkage across the supply chain
Creation of value in customer operation/experience through enabling use of collected data
Global deployment with localized adaptability
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
Supply Chain Integration
Authentication / Opening Detection
Management
Brand Experience
Traceability Inventory
*Source: Grand View Research, Smart Packaging Market Size, Share & Trends Analysis Report by Technology, 2024–2030
27
Copyright © SATO Corporation. All rights reserved.
Smart packaging is an area where we are beginning to see tangible synergies between our primary labels and base businesses.
Smart packaging refers to packaging that use technologies such as RFID, NFC and sensors to embed information into the packaging itself.
It transforms packaging into a medium for conveying information, supporting distribution management, authentication and interactive consumer features.
Although the market is still in its early stages, smart packaging is gaining attention among
packaging and printing companies as the next growth area.
In fact, the global smart packaging market is projected to grow at an average annual rate of 6.2% over the next few years, steadily expanding with the trends toward digitalization.
We have clear strengths in this area.
In the base business, we have a proven track record and expertise in creating systems that digitize information about things at operational sites across various fields such as manufacturing, logistics, and health care.
The knowledge we have accumulated, including how to apply technology and capture data in specific environments, is a unique strength built upon real-world experience.
In our primary labels business, we maintain direct relationships with brand owners and offer advanced printing and packaging, including shrink sleeves that wraps around products, and in-mold labels that are integrated into products’ containers.
We believe that the combination of the base and primary labels businesses creates a unique
advantage that sets us apart from other companies.
This smart packaging initiative exploits the synergy between these two businesses, providing
us with a potential new pillar for the company’s growth.
We will provide more information when we update the medium-term management plan in December.
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
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.
Develop locally optimized solutions
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.
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. 28
*3: PJM: See SATO terminologies. Copyright © SATO Corporation. All rights reserved.
Overseas Business (Base Business)
Pursuing Sustainable and Efficient Growth in Global 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.
60％
56％ 55％
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.
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.
Pursuing Sustainable and Efficient Growth in Global Markets
The base business is the foundation for creating new possibilities such as those for smart packaging.
This section describes the current status of the base business and the progress we made against the medium-term management plan.
In the overseas base business, with a strategic focus on pursuing sustainable and efficient growth, four key initiatives are underway to drive stable, repeatable growth rather than temporary one.
Although these initiatives may seem unrelated, they work together to create a virtuous cycle, with locally developed solutions deployed worldwide, and turned into recurring revenue.
In parallel, we are strengthening our global capabilities to provide consistent support and make business proposals to multinational customers.
- Increase recurring sales of consumables
This is an effort to steadily grow recurring business.
While large projects can have significantly positive impact on our business, their loss can have equally significant impact.
To lessen such fluctuations and ensure stable revenue, we have set a target for recurring business to represent at least 60 percent of the total business at all our subsidiaries by the end of FY26.
- Redefine the roles and functions of HQ and sales offices
We aim to leverage our subsidiaries as an integrated business network rather than entities that operate in isolation. As part of its responsibilities, the HQ identifies global key accounts, for which it works to enhance support across regions we serve through solution planning, information sharing, and internal coordination. As a result, high-probability projects with global key accounts are progressing steadily as we enter H2. Collaboration between Japan and overseas entities is also driving a steady increase in business opportunities that are triggered by other projects. Senior management and executives are involved in the efforts by visiting the operational sites of global key accounts in person to build strong relationships with them.
- Develop locally optimized solutions
Industry structures and customer challenges differ significantly by country and region. Each subsidiary is developing solutions tailored to local needs based on the regional characteristics, which has strengthened our competitiveness.
- Expand the solution deployment
This is an effort to expand deployment of locally created solutions by applying them to similar needs in the same industries of other regions to efficiently replicate the successes. For example, blood bag management solutions piloted and implemented in Asia are now being presented and considered in the medical and clinical fields in Europe, which is laying the foundation for cross-region solution deployment.
These four initiatives combined are building a strong foundation for sustainable and efficient growth.
Japan Business
Restore Profitability and Build a Foundation for Sustainable Growth
Optimize product lineup
Grew 4.7 times in two years
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).
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.
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.
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.
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.
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.
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Restore Profitability and Build a Foundation for Sustainable Growth
Lastly, this section explains the current status of the Japan business.
At present, we are working to build a stronger and more stable earnings base through organizational restructuring and enhanced collaboration.
Under our medium-term management plan, the Japan business has set five key initiatives. Here, we will focus on four of them.
1. Capture demand in key markets
In manufacturing, which we position as a focal market, the 2024 logistics problem has created urgent needs for manufacturers to shorten shipment lead times and automate production sites.
To aptly respond to the changes in the business environment, we provide solutions for enhancing efficiencies at manufacturing sites, including packaged software for logistics optimization that is gaining traction.
2. Shift to profit-based evaluation for sales department
Management has consistently emphasized the urgent need to raise profitability, and now the awareness is high not just in the sales division but in the maintenance division as well. This has led to more targeted activities, as seen in stepped up efforts to capture demand for hardware refresh.
In H1, the maintenance division achieved 200% of its printer replacement targets. In addition, in H2, we are introducing OI reports as part of the efforts to help visualize sales activities and their profitability using data to facilitate the management at sales offices.
3. Strengthen value chain management
The reorganization of the company structure to one divided by product segment — complete with development, manufacturing and sales departments dedicated to the product category — has galvanized efforts to review manufacturing processes and manage profitability from the perspective of total optimization. One of the key initiatives in the efforts was the development of a standard platform for our mechatronics products. By standardizing the platform for our printer and mechatronic products, we can shorten the development time, reduce production costs and consolidate component inventories, boosting efficiencies across the value chain from development through manufacturing and sales.
In addition, the common platform will eliminate overlapping investments across different models and facilitate faster product rollouts and derivative developments, leading to more effective use of management resources for the entire product portfolio. In the future, it is also expected to improve capital efficiency by streamlining/consolidating product and parts inventories.
4. Launch of new printer model
The CL4-SXR is our new flagship model and the first product to adopt the standard platform.
This model employs predictive maintenance, which seeks to detect signs of impending failure by analyzing data, including those of operating conditions, in a shift from conventional preventive maintenance, which relies on usage data such as print volumes to prevent a failure.
Our printers earn strong recognition from customers not only for their operational stability, but also for the ease of use and practical designs optimized for operational sites, which we achieve by leveraging our extensive knowledge of customer operations. The CL4-SXR is scheduled to launch in January 2026. Our global sales target is set at approximately 300,000 units, which we aim to achieve by capturing demand for hardware refresh, among other demands.
We will work to transform the Japan business into a more profitable one thorough these initiatives, while steadily accumulating
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Performance data Pages 31-50
SATO terminologies Pages 51-54
Appendix