Financial Results for the First Quarter Ended June 30, 2025

Consolidated Financial Results

for the Three Months Ended June 30, 2025 [Under Japanese GAAP]

July 31, 2025

Company name: SHIMA SEIKI MFG.,LTD. Listing: Tokyo Stock Exchange Securities code: 6222

URL: https://www.shimaseiki.co.jp/

Representative: Mitsuhiro Shima President and Representative Director

Inquiries: Shosaku Kitagawa Director, Managing Executive Officer General Manager of the

Corporate Planning Division

Telephone: +81-73-471-0511

Scheduled date to commence dividend payments: -Preparation of supplementary material on financial results: None Holding of financial results briefing: None

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

1. Consolidated Financial Results for the Three Months Ended June 30, 2025 (April 1, 2025 to June 30, 2025)
   1. Consolidated Operating Results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Three months ended June 30, 2025 June 30, 2024	Millions of yen 10,519 8,061	% 30.5 (31.1)	Millions of yen 307 (493)	% - -	Millions of yen 1,012 (343)	% - -	Millions of yen 907 (380)	% - -

      (Note) Comprehensive income:	Three months ended June 30, 2025:	¥	586 million [	(79.1) %]
      	Three months ended June 30, 2024:	¥	2,811 million [	(18.4) %]

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      June 30, 2025	26.36	26.36
      June 30, 2024	(11.03)	-

   2. Consolidated Financial Position

   	Total assets	Net assets	Capital adequacy ratio
   As of June 30, 2025 March 31, 2025	Millions of yen 100,760 99,405	Millions of yen 77,666 77,740	% 77.0 78.2

   (Reference) Equity: As of June 30, 2025:	¥	77,626 million
   As of March 31, 2025:	¥	77,701 million

2. Dividends

   	Annual dividends
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended March 31, 2025 Fiscal year ending March 31, 2026	Yen - -	Yen 5.00	Yen -	Yen 5.00	Yen 10.00
   Fiscal year ending March 31, 2026 (Forecast)		10.00	-	10.00	20.00

   (Note) Revision to the forecast for dividends announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026(April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

1. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): June 30, 2025: 35,800,000 shares

      March 31, 2025: 35,800,000 shares

   2. Number of treasury shares at the end of the period:

      June 30, 2025: 1,858,654 shares

      March 31, 2025: 1,281,734 shares

   3. Average number of shares outstanding during the period:

Three months ended June 30, 2025: 34,439,069 shares

Three months ended June 30, 2024: 34,516,172 shares

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

• Proper use of earnings forecasts, and other special matters (Cautions concerning the use of earnings forecasts)

Forward-looking statements provided in this document, including earnings forecasts, are based on the information currently available to the Company and certain assumptions considered reasonable.Actual business and other results may differ materially from the forecasts depending on various factors.

Quarterly Consolidated Financial Statements and Primary Notes

1. Quarterly Consolidated Balance Sheet

   (Millions of yen)

   As of March 31, 2025

   As of June 30, 2025

   Assets

   Current assets
   Cash and deposits	14,129	15,988
   Notes and accounts receivable - trade	35,341	36,525
   Merchandise and finished goods	12,428	10,407
   Work in process	858	873
   Raw materials and supplies	11,695	11,574
   Other	1,364	1,793
   Allowance for doubtful accounts	(1,612)	(1,600)
   Total current assets	74,205	75,562
   Non-current assets
   Property, plant and equipment
   Buildings and structures, net	5,709	5,604
   Land	6,397	6,399
   Other, net	2,078	2,078
   Total property, plant and equipment	14,186	14,082
   Intangible assets	78	76
   Investments and other assets
   Investment securities	6,115	6,255
   Distressed receivables	11,335	10,903
   Retirement benefit asset	1,225	1,220
   Deferred tax assets	303	310
   Other	1,425	1,434
   Allowance for doubtful accounts	(9,468)	(9,084)
   Total investments and other assets	10,936	11,038
   Total non-current assets	25,200	25,197
   Total assets	99,405	100,760

   (Millions of yen)

   As of March 31, 2025

   As of June 30, 2025

   Liabilities

   Current liabilities

   Accounts payable - trade	1,475	1,656
   Electronically recorded obligations - operating	587	540
   Short-term borrowings	8,800	11,200
   Lease liabilities	511	458
   Income taxes payable	206	256
   Contract liabilities	1,536	1,618
   Provision for bonuses	1,135	732
   Provision for product warranties	292	245
   Provision for loss on guarantees	38	36
   Other	3,047	2,385
   Total current liabilities	17,632	19,130
   Non-current liabilities
   Long-term accounts payable - other	44	44
   Lease liabilities	670	585
   Deferred tax liabilities	1,081	1,076
   Retirement benefit liability	2,016	2,036
   Other	220	220
   Total non-current liabilities	4,032	3,963
   Total liabilities	21,665	23,094
   Net assets
   Shareholders' equity
   Share capital	14,859	14,859
   Capital surplus	23,420	23,420
   Retained earnings	31,615	32,350
   Treasury shares	(3,912)	(4,399)
   Total shareholders' equity	65,983	66,230
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	2,542	2,680
   Revaluation reserve for land	33	33
   Foreign currency translation adjustment	9,781	9,300
   Remeasurements of defined benefit plans	(638)	(618)
   Total accumulated other comprehensive income	11,718	11,396
   Share acquisition rights	13	12
   Non-controlling interests	25	26
   Total net assets	77,740	77,666
   Total liabilities and net assets	99,405	100,760

2. Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statement of Comprehensive Income

Comprehensive income attributable to non-controlling

interests 0 0