Financial Results Presentation Material For the Fiscal Year Ended March 31, 2026

For the Fiscal Year Ended March 31, 2026

SATO SHOJI CORPORATION

1. 2026/3 Consolidated Results 03
2. 2027/3 Consolidated Forecasts 08
3. Policy for Equity Holdings 11
4. About Sato Shoji Group 13

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

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1. ‌2026/3 Consolidated Results
   
   
   
   
   
   

   ‌1. 2026/3 Consolidated Results

   Summary of Financial Results

   Key

   Points

   • In the fiscal year under review, net sales were ¥292.1 billion yen, up 2.7% year on year; operating profit was 7.6 billion yen, up

     12.6%; ordinary profit was 8.1 billion yen, up 13.5%; and profit attributable to owners of parent was 6.5 billion yen, up 9.2%. All reached record highs.

   • Background: Overall earnings were driven by growth in the Electronics Division amid expansion of the generative AI market, as well as growth in the Life Sales Division centered on its own products.

   • As a result, the Company also achieved its final-year targets under the Third Medium-Term Management Plan.

   • In terms of profitability, the operating profit margin was 2.6% (up 0.2% year on year), and ROE was 9.1% (up 0.1% year on year), showing steady improvement.

   Net sales, operating profit, ordinary profit, and profit all reached record highs; final-year targets under the Third Medium-Term Management Plan were also achieved

   (Millions of yen; %)

   	2025/3		2026/3		Year-on-year change
   	Amount	Composition ratio	Amount	Composition ratio	Amount	Percentage
   Net sales	284,552	100%			7,639	2.7%
   			292,191	100%
   Gross profit	22,771	8.0%	23,971	8.2%	1,200	5.3%
   Selling, general and administrative expenses	15,954	5.6%	16,298	5.6%	344	2.2%
   Operating profit	6,817	2.4%	7,673	2.6%	856	12.6%
   Ordinary profit	7,191	2.5%	8,162	2.8%	971	13.5%
   Profit before income taxes	8,402	3.0%	8,819	3.0%	417	5.0%
   Profit attributable to owners of parent	6,015	2.1%	6,568	2.2%	553	9.2%
   Earnings per share (yen)	285.90	-	314.18	-	-	-

   4

   
   
   
   
   

   ‌1. 2026/3 Consolidated Results

   Summary of Financial Results

   Key

   Points

   • The Electronics Business posted a significant increase in both net sales and profit, with net sales up 20.8% year on year and operating profit up 44.0%. Sales of

     materials for communications infrastructure and semiconductor-related materials grew significantly, supported by expanding demand related to generative AI.

   • The Life Sales Business also maintained high growth, with net sales up 18.0% and operating profit up 47.4%, increasing its contribution to earnings.

   • In the Iron Steel Division, net sales declined 1.2% and operating profit fell 8.0%. Although sales volume remained solid, the impact on unit prices from lower material prices led to a decrease in both net sales and profit.

   • In the Non-ferrous Metals Division, net sales decreased by 3.1%; however, profit increased significantly by 42.8%, showing progress in improving profitability.

   • The Machinery and Tools Business recorded lower net sales due to the absence of large projects posted in the previous fiscal year, resulting in an operating loss.

   
   
   

   Electronics and Life Sales Drove Results, While Iron and Steel Was Sluggish

   The contribution of growth areas increased while existing businesses remained a stable

   	Iron and Steel	Non-ferrous Metals	Electronics	Life Sales	Machinery and Tools	Business Development	Total
   2025/3 Net sales	177,897	41,954	43,633	9,744	6,889	4,433	284,552
   2026/3 Net sales	175,823	40,657	52,689	11,498	6,254	5,267	292,191
   Amount	(2,074)	(1,297)	9,056	1,754	(635)	834	7,639

   (Millions of yen)

   (Millions of yen)

   300,000

   4,530 4,433 5,267

   4,602

   9,744

   6,889

   11,498

   6,254

   8,610 6,243 8,141 4,396

   29,510 35,841 43,633 52,689

   200,000

   41,122

   39,281

   41,954 40,657

   100,000

   0

   184,916

   181,785

   177,897 175,823

   Business Development Machinery and Tools Life Sales

   Electronics

   Non-ferrous Metals Iron and Steel

   2023/3 2024/3 2025/3 2026/3

   5

   
   
   
   
   

   ‌1. 2026/3 Consolidated Results

   Balance Sheet

   Key

   Points

   • Total assets at the end of the fiscal year were 181.2 billion yen, an increase of approximately 10.0 billion yen from the end of the previous

     fiscal year. The main factors behind the increase were higher trade receivables and expanded unrealized gains on investment securities.

   • Specifically, accounts receivable and other receivables increased by approximately 2.5 billion yen and investment securities increased by approximately 4.9 billion yen. The increase in assets was driven primarily by "higher working capital accompanying business expansion" and "expanded unrealized gains on investment securities."

   • Total liabilities increased by approximately 1.5 billion yen, representing only a slight increase.

   • Net assets were 76.9 billion yen, an increase of approximately 8.5 billion yen. The main factors were the accumulation of retained earnings, which increased by approximately 4.9 billion yen, and an increase in valuation difference on available-for-sale securities, which rose by approximately 3.4 billion yen. In particular, expanded valuation gains resulting from the rise in the stock market had a significant impact on the increase in net assets.

   (Millions of yen)

   		2025/3	2026/3	YoY change
   Current assets		125,596	129,171	3,575
   	Cash and deposits	3,912	5,977	2,065
   	Notes and accounts receivable - trade Electronic recorded monetary claims-operating	85,195	87,612	2,417
   	Other assets	36,489	35,582	(907)
   Non-current assets		45,547	52,037	6,490
   	Property, plant and equipment	24,587	25,281	694
   	Intangible assets	208	191	(17)
   	Investments and other assets	20,751	26,564	5,813
   Total assets		171,143	181,208	10,065
   Total liabilities		102,688	104,262	1,575
   	Current liabilities	92,257	97,086	4,829
   	Non-current liabilities	10,431	7,176	(3,255)
   Total net assets		68,454	76,945	8,491
   Total liabilities and net assets		171,143	181,208	10,065
   Equity ratio		39.8%	42.3%	2.5pt

   Financial Position Steadily Strengthened

   Current assets	Current liabilities 97,086
   129,171
   	Non-current liabilities
   	7,176
   	Net assets 76,945
   Non-current assets
   52,037

   (Millions of yen)

   150,000

   100,000

   50,000

   0

   Assets Liabilities and net assets

   6

   
   
   

   1. ‌2026/3 Consolidated Results

      Cash Flow

      Key

      Points

      • While cash flows from operating activities declined, the primary contributing factor was an increase in working capital driven by sales

        growth.

      • Cash flows from investing activities were negative at 1.3 billion yen, reflecting continued investment activity. The main contributing factors were investments in property, plant, and equipment (down 2.2 billion yen) and the sale of investment securities (up 1.0 billion yen).

      • Cash flows from financing activities resulted in a net increase of 1.7 billion yen. The main factors were an increase in short-term borrowings (up 8.6 billion yen), repayment of long-term borrowings (down 4.5 billion yen), dividend payments (down 1.6 billion yen), and the repurchase of treasury stock (down 0.7 billion yen).

      • As a result, our cash balance at the end of the fiscal year was 5.9 billion yen, an increase of approximately 2.0 billion yen from the previous fiscal year.

      Continued Investments While Improving Cash Positioning

      (Millions of yen)

      
      
      

      (Millions of yen)

      1,386

      3,912

CF from

(1,373)

1,774

CF from

277

Other

operating activities CF from

financing activities

investing activities

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

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1. ‌2027/3 Consolidated Forecasts
   
   
   
   
   
   

   1. ‌2027/3 Consolidated Forecasts

      Results Forecasts for the Fiscal Year Ending March 31, 2027
      
      

      Plans for Continued Revenue and Profit Growth

      (Millions of yen; %)

      	2026/3		2027/3 (Forecast)		YoY change
      	Amount	Composition ratio	Amount	Composition ratio	Amount	Percentage
      Net sales	292,191	100%			12,809	4.4%
      			305,000	100%
      Operating profit	7,673	2.6%	8,300	2.7%	627	8.2%
      Ordinary profit	8,162	2.8%	8,600	2.8%	438	5.4%
      Profit attributable to owners of parent	6,568	2.2%	6,600	2.2%	32	0.5%
      Earnings per share (yen)	314.18	-	315.67	-	-	-

      Future Outlook

      • We plan to continue growing both revenue and profit, with net sales expected to reach 305 billion yen (up 4.4% year on year) and operating profit reaching 8.3 billion yen (up 8.2% year on year).

      • Conversely, net income is projected to remain virtually flat year on year, at 6.6 billion yen (up 0.5%). The primary reason for this is the recognition of actuarial gains and losses related to retirement benefit accounting in the previous fiscal year, driven by factors such as rising long-term interest rates and higher share prices.

   9

   
   
   
   
   

   1. ‌2027/3 Consolidated Forecasts

      Dividend Forecast
      
      

      Dividend Policy

      • At least 30% of consolidated deemed net profit*1, with a minimum DOE (dividend on equity*2) of 2.7%.

      • Dividends of surplus will be paid twice a year in principle: interim and year-end

        (Millions of yen)

        100

        	2025/3 Results	2026/3 Results	2027/3 (Forecast)
        Dividend per share	76 yen	82 yen	87 yen
        Amount of dividends a	1,599	1,711	-
        Payout ratio	26.6%	26.1%	27.6%
        Consolidated profit	6,015	6,568	6,600
        Consolidated deemed profit b	4,989	5,662	5,889
        Deemed payout ratio (a/b)	32.1%	30.2%	-

        90

        80

        70

        60

        50

        40

        30

        20

        10

        76 yen

        32.1%

        82 yen 87 yen

        30.2%

        50.0%

        40.0%

        30.0%

        20.0%

        10.0%

        0 2025/3 2026/3 2027/3

        (forecast)

        Dividend Deemed payout ratio

        0.0%

        Plan for 5-yen dividend increase

        • The annual dividend for the fiscal year ended March 2026 was revised from 76 yen to 82 yen, representing a 6-yen increase from the previous year's 76 yen. The deemed dividend payout ratio remained at 30.2%.

        • For the fiscal year ending March 2027, the company plans an annual dividend of 87 yen (42 yen interim, 45 yen year-end), representing dividend increase of 5 yen.

*1 Consolidated deemed profit:

Consolidated ordinary profit x (1 - Effective tax rate)

*2 DOE: Dividends paid divided by shareholders' equity at the beginning of the fiscal year.

The shareholders' equity figure excludes "other components of equity," such as foreign currency translation adjustments and valuation differences on

available-for-sale securities, from the parent company's equity attributable to owners at the beginning of the fiscal year. 10

1. ‌Policy for Equity Holdings
   
   
   
   
   
   

   1. ‌Policy for Equity Holdings

      Equity Holdings Policy and Status
      
      

      The Board of Directors reviews the rationale for equity holdings twice a year, taking a holistic view of factors such as dividends, business transactions, and costs of capital. Any holdings deemed inappropriate to maintain are slated for reduction.

      Status of Reductions

• During the current fiscal year, three listed shares totaling 24 million yen that were not held for pure investment purposes were sold.

• One listed share scheduled for sale once terms are finalized has been reclassified as a pure investment holding.

  Listed shares decreased from 36 to 32, and unlisted shares decreased from 18 to 14 following the sale of four holdings totaling 210 million yen.

  100,000

  80,000

  60,000

  40,000

  20,000

  0

  22.97% 76,945

  65,202 68,454

  12,942

  18.91%

  14,975

  19.97%

  15,368

  2024/3 (101st fiscal year) 2025/3 (102nd fiscal year) 2026/3 (103rd fiscal year)

  25.00%

  23.00%

  21.00%

  19.00%

  17.00%

  Holding Ratio

• Percentage of consolidated net assets held in stock investments for purposes other than pure investment as of March 31, 2026:

19.97% (up 1.07point YoY)

Breakdown: 19.40% for listed shares (up 1.19pt YoY) and 0.57% for unlisted shares (down 0.12pt YoY).

Number of Shares

Consolidated net assets (Millions of yen)

Balance sheet value of equity holdings (Millions of yen) Holding ratio (%)

(Issues)

12

1. ‌About Sato Shoji Group

1. ‌About Sato Shoji Group

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‌4. About Sato Shoji Group

Head Quarters

Branch

Coil center

Centered on its Tokyo Head Quarters, Sato Shoji has warehouses, machining facilities, and distribution centers in a network of 41 branches in Japan, establishing a system that enables swift responses to customers' requests. The Iron and Steel Department has coil centers in Tamura-shi in Fukushima Prefecture, Tochigi-shi in Tochigi Prefecture, and Fujisawa-shi in Kanagawa Prefecture. We have a variety of equipment and are enhancing our machining and distribution functions to enable us to meet our customers' strict machining accuracy requirements.

41 branches in Japan

Koriyama Coil Center

Tamura, Fukushima

Tochigi Coil Center

Tochigi, Tochigi

Kanagawa Coil Center

Fujisawa, Kanagawa

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‌4. About Sato Shoji Group

Head Quarters

Branch

Affiliate

The Sato Shoji Group has 11 subsidiaries and affiliated companies with 14 locations in Japan. They include companies from a variety of industries, with a focus on the Iron & Steel business.

Making effective use of our network of domestic bases and these subsidiaries and affiliated companies spanning the whole of Japan, we will strive to improve sales efficiency and promote the further expansion of our business fields.

1 Consolidated subsidiary

NK TECH NIIGATA K.K.

Iron & Steel product manufacturing

2 Consolidated subsidiary

NIHON YOSHOKKI CO., LTD.

Metal sundries manufacturing

Consolidated subsidiary

SATO CHEMIGLASS CORPORATION

Processing and sales of glass materials and synthetic resin products Tsukuba Techno Center

Consolidated subsidiary FUJI JIDOSHA KOGYO CO., LTD.

Automotive components Manufacturing

Atsugi Factory

8 Consolidated subsidiary

METAL ACT CO., LTD.

Iron & Steel sales

11

12

14

Equity method affiliate

INOUE MATERIAL Co., LTD.

Mineral & Metal material sales

SATO GENETEC CORPORATION

Operation/management of car parking and bicycle parking lots; Nonlife insurance agent

SHONAN KAKOU K.K.

Steel stock processing

SEKINE KOZAI K.K.

Steel stock sales

1

2

3 9 8

10

4

14

12

11

5 Consolidated subsidiary

DAITO KOGYO CO., LTD.

Steel stock processing and sales

Consolidated subsidiary

HANSHIN SPECIAL STEEL CO., LTD.

Iron & Steel sales

Utsunomiya branch

6 7 13 5

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‌4. About Sato Shoji Group

21 overseas locations

Our first step overseas was the establishment of SATO SHOJI HONG KONG CO., LTD. in 2004. Since then, the Sato Shoji Group has established business bases in 21 locations in 10 countries and regions. United as one, the Group will work together to strengthen and expand our overseas business, with a particular focus on the Asian region.

• Consolidated subsidiary ● Equity method affiliate

Overseas Sales Companies

A

SATO SHOJI HONG KONG CO., LTD.●

Electronic materials sales

B

SATO SHOJI SHANGHAI CO., LTD.●

Iron & Steel, Non-ferrous Metals and Electronic materials sales

SATO-SHOJI (VIETNAM) CO., LTD.●

I

Non-ferrous Metals and Iron & Steel sales

J

HANOI BRANCH

Iron & Steel and Non-ferrous Metals sales

C

CHANGZHOU BRANCH

D

Iron & Steel and Non-ferrous Metals sales; Steel material warehouses

SATO CHEMICAL GLASS (SUZHOU) CO., LTD.

Synthetic resins and Glass products sales

E

SATO SHOJI (GUANGZHOU) CO., LTD.●

Electronic materials and Iron & Steel sales

SATO SHOJI ASIA PACIFIC PTE. LTD.●

K

Electronic materials sales

L

PT. SATO-SHOJI INDONESIA●

Iron & Steel and Non-ferrous Metals sales

M

SATO-SHOJI INDIA PRIVATE LIMITED

Iron & Steel and Non-ferrous Metals sales

F

SATO SHOJI KOREA CO., LTD.

Electronic materials and Iron & Steel sales

BENGALURU BRANCH

N

Electronic materials sales

G

SATO-SHOJI (THAILAND) CO., LTD.●

Iron & Steel, Electronic materials, and Non-ferrous Metals sales

H

SATO TECHNO SERVICE (THAILAND) CO., LTD.

Machining tools sales; Machinery repair services

PS DEVICE & MATERIAL INC.

O

Electronic materials sales

P

SATO SHOJI MALAYSIA SDN. BHD.

Electronic materials sales

Joint Venture Manufacturing Companies

Q

SOGABE (SUZHOU) GEAR REDUCER CO., LTD.

Manufacturing of Gear reducers

R

UCHIDA-SATO TECH (THAILAND) CO., LTD.

Manufacturing of Die holders for forging

S

YUASA SATO (THAILAND) CO., LTD.●

Manufacturing of Crankshafts

THAI KJK CO., LTD.

T

Manufacturing of Automotive components

U

POLYHOSE SATO SHOJI

METAL WORKS PRIVATE LIMITED

Steel stock processing and Can fabrication

SATO-SHOJI (THAILAND)

Electronics Dept. warehouse

17

‌4. About Sato Shoji Group

Beginning in the fiscal year ending March 2027, we will establish a new Overseas Operations Dept., expanding our business segments from a total of six to seven.

Before change After change

NEW

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‌4. About Sato Shoji Group

From its unique position and competitive strengths as an independent metal trading company that links users and manufacturers directly, Sato Shoji leverages its flexible and wide-ranging procurement capabilities and quick responsiveness to offer high added value to customers.

Each department offers flexible services in response to customers needs, providing support to a wide range of customers.

A key characteristic of Sato Shoji is its diverse divisions, namely the Iron and Steel, Non-ferrous Metals, Electronics, Machinery and Tools, Life Sales, Business Development, and Overseas Operations departments, which work for different industries and customer segments. This diversification helps avoid reliance on a single market and diffuses risks.

With 41 locations in Japan and 21 locations overseas, we place importance on a regionally focused approach. In particular, we are expanding our business in the rapidly growing Asian region and enhancing our competitiveness amid the progress of globalization.

Our diversified business operations, including Iron and Steel, Non-ferrous Metals, Electronics, Machinery and Tools, and Life Sales, have enabled Sato Shoji to be more than just a supplier of goods for corporate customers and become their comprehensive business partner.

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‌Disclaimer

• The purpose of this material is to provide information about business performance, and it is not intended as a solicitation of investment in the securities issued by the Company.

• The information and forecasts presented in this material are based on information available to the Company at the time of preparing the material, and they contain certain judgments made by the Company. No guarantee is given as to the accuracy of the information, and actual performance and results may differ due to various future factors.

• The Company shall bear no responsibility whatsoever for any impact or damage that may result from the information in this material.

• All rights to this material remain with the Company, and readers are asked not to copy or reproduce the material in any way or for any purpose without permission.

Contact for inquiries:

PR & IR Dept.

https://www.satoshoji.co.jp/en/contact.html

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