Financial Results for the Year Ended March 31, 2025

Summary of Consolidated Financial Results for the Year Ended March 31, 2025

[Under Japanese GAAP]

May 9, 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 of annual general meeting of shareholders: June 26, 2025 Scheduled date to commence dividend payments: June 27, 2025 Scheduled date to file annual securities report: June 27, 2025

Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes

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

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)
   1. Consolidated Operating Results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 32,520 35,910	% (9.4) (5.2)	Millions of yen (11,914) 430	% - -	Millions of yen (11,481) 1,018	% - -	Millions of yen (14,275) 1,030	% - -

      (Note) Comprehensive income:	Fiscal year ended March 31, 2025:	¥	(13,844) million	[	-%]
      	Fiscal year ended March 31, 2024:	¥	6,161 million	[	-%]

      	Basic earnings per share	Diluted earnings per share	Rate of return on equity	Ordinary profit to total assets ratio	Operating profit to net sales ratio
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2025	(413.58)	-	(16.8)	(11.1)	(36.6)
      March 31, 2024	29.85	29.84	1.2	1.0	1.2

      (Reference) Equity in earnings (losses) of affiliated companies:	Fiscal year ended March 31, 2025:	¥	- million
      (2) Consolidated Financial Position	Fiscal year ended March 31, 2024:	¥	- million

      	Total assets	Net assets	Capital adequacy ratio	Net assets per share
      As of March 31, 2025 March 31, 2024	Millions of yen 99,405 107,804	Millions of yen 77,740 91,926	% 78.2 85.2	Yen 2,251.04 2,662.21

      (Reference) Equity: As of March 31, 2025:	¥	77,701 million
      As of March 31, 2024:	¥	91,889 million

      (3) Consolidated Cash Flows

      	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at the end of period
      Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen (4,461) (4,120)	Millions of yen (3,222) (167)	Millions of yen 5,376 348	Millions of yen 10,363 12,809

2. Dividends

   	Annual dividends					Total dividends	Payout ratio (consolidated)	Dividends to net assets (consolidated)
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended March 31, 2024 March 31, 2025	Yen - -	Yen 5.00 5.00	Yen - -	Yen 5.00 5.00	Yen 10.00 10.00	Millions of yen 345 345	% 33.5 (2.4)	% 0.4 0.4
   Fiscal year ending March 31, 2026 (Forecast)	-	10.00	-	10.00	20.00		34.5

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

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

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

   3. Changes in accounting estimates: Yes

   4. Restatement: None

2. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): March 31, 2025: 35,800,000 shares

      March 31, 2024: 35,800,000 shares

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

      March 31, 2025: 1,281,734 shares

      March 31, 2024: 1,283,801 shares

   3. Average number of shares outstanding during the period:

Fiscal Year ended March 31, 2025: 34,517,858 shares

Fiscal Year ended March 31, 2024: 34,515,970 shares

1. Non-consolidated Operating Results (Percentages indicate year-on-year changes.)

   	Net sales		Operating profit		Ordinary profit		Net income
   Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 25,873 29,818	% (13.2) (2.3)	Millions of yen (7,113) (1,092)	% - -	Millions of yen (7,595) (786)	% - -	Millions of yen (9,729) (535)	% - -

   	Basic earnings per share	Diluted earnings per share
   Fiscal year ended	Yen	Yen
   March 31, 2025	(281.88)	-
   March 31, 2024	(15.50)	-

2. Non-consolidated Financial Position

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.

• 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.

Consolidated Financial Statements

1. Consolidated Balance Sheets

   (Millions of yen)

   As of March 31, 2024

   As of March 31, 2025

   Assets

   Current assets

   Cash and deposits	14,822	14,129
   Notes receivable - trade	15,283	14,654
   Accounts receivable - trade	30,218	20,687
   Merchandise and finished goods	13,526	12,428
   Work in process	841	858
   Raw materials and supplies	11,929	11,695
   Other	1,532	1,364
   Allowance for doubtful accounts	(4,135)	(1,612)
   Total current assets	84,019	74,205
   Non-current assets
   Property, plant and equipment
   Buildings and structures	27,928	27,739
   Accumulated depreciation	(21,714)	(22,029)
   Buildings and structures, net	6,213	5,709
   Machinery, equipment and vehicles	6,044	5,951
   Accumulated depreciation	(5,343)	(5,292)
   Machinery, equipment and vehicles, net	701	658
   Tools, furniture and fixtures	6,969	7,073
   Accumulated depreciation	(6,110)	(6,162)
   Tools, furniture and fixtures, net	858	911
   Land	6,583	6,397
   Leased assets	5,306	4,363
   Accumulated depreciation	(4,681)	(3,907)
   Leased assets, net	625	456
   Construction in progress	82	51
   Total property, plant and equipment	15,066	14,186
   Intangible assets	152	78
   Investments and other assets
   Investment securities	5,493	6,115
   Distressed receivables	2,411	11,335
   Retirement benefit asset	1,202	1,225
   Deferred tax assets	589	303
   Other	1,261	1,425
   Allowance for doubtful accounts	(2,392)	(9,468)
   Total investments and other assets	8,566	10,936
   Total non-current assets	23,785	25,200
   Total assets	107,804	99,405

   (Millions of yen)

   As of March 31, 2024

   As of March 31, 2025

   Liabilities

   Current liabilities

   Accounts payable - trade	1,867	1,475
   Electronically recorded obligations - operating	768	587
   Short-term borrowings	2,500	8,800
   Lease liabilities	673	511
   Income taxes payable	242	206
   Contract liabilities	1,734	1,536
   Provision for bonuses	1,328	1,135
   Provision for product warranties	-	292
   Provision for loss on guarantees	80	38
   Other	2,639	3,047
   Total current liabilities	11,836	17,632
   Non-current liabilities
   Long-term accounts payable - other	53	44
   Lease liabilities	836	670
   Deferred tax liabilities	865	1,081
   Deferred tax liabilities for land revaluation	17	18
   Retirement benefit liability	1,997	2,016
   Other	269	201
   Total non-current liabilities	4,040	4,032
   Total liabilities	15,877	21,665
   Net assets
   Shareholders' equity
   Share capital	14,859	14,859
   Capital surplus	23,422	23,420
   Retained earnings	46,236	31,615
   Treasury shares	(3,919)	(3,912)
   Total shareholders' equity	80,599	65,983
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	1,702	2,542
   Revaluation reserve for land	33	33
   Foreign currency translation adjustment	10,319	9,781
   Remeasurements of defined benefit plans	(766)	(638)
   Total accumulated other comprehensive income	11,290	11,718
   Share acquisition rights	16	13
   Non-controlling interests	21	25
   Total net assets	91,926	77,740
   Total liabilities and net assets	107,804	99,405

2. Consolidated Statements of Income and Comprehensive Income

   Consolidated Statements of Income
   		(Millions of yen)
   	For the fiscal year ended March 31, 2024	For the fiscal year ended March 31, 2025
   Net sales	35,910	32,520
   Cost of sales	21,221	23,886
   Gross profit	14,689	8,633
   Selling, general and administrative expenses	14,258	20,548
   Operating profit (loss)	430	(11,914)
   Non-operating income
   Interest income	696	694
   Dividend income	162	214
   Rental income	69	57
   Other	351	167
   Total non-operating income	1,279	1,133
   Non-operating expenses
   Interest expenses	51	48
   Rental expenses on non-current assets	37	23
   Foreign exchange losses	590	611
   Provision of allowance for doubtful accounts	-	4
   Other	12	13
   Total non-operating expenses	691	701
   Ordinary profit (loss)	1,018	(11,481)
   Extraordinary income
   Subsidy income	45	-
   Gain on sale of investment securities	249	-
   Total extraordinary income	295	-
   Extraordinary losses
   Loss on sale and retirement of non-current assets	-	51
   Loss on valuation of investment securities	-	439
   Impairment losses	-	1,495
   Provision for product warranties	-	292
   Total extraordinary losses	-	2,278
   Profit (loss) before income taxes	1,313	(13,760)
   Income taxes - current	191	232
   Income taxes - deferred	90	280
   Total income taxes	282	512
   Profit (loss)	1,031	(14,272)
   Profit attributable to non-controlling interests	0	2
   Profit (loss) attributable to owners of parent	1,030	(14,275)

   Consolidated Statements of Comprehensive Income
   		(Millions of yen)
   	For the fiscal year ended March 31, 2024	For the fiscal year ended March 31, 2025
   Profit (loss)	1,031	(14,272)
   Other comprehensive income
   Valuation difference on available-for-sale securities	786	839
   Revaluation reserve for land	-	(0)
   Foreign currency translation adjustment	4,948	(538)
   Remeasurements of defined benefit plans, net of tax	(604)	128
   Total other comprehensive income	5,130	428
   Comprehensive income	6,161	(13,844)
   Comprehensive income attributable to

   Comprehensive income attributable to owners of parent

   6,160 (13,847)

   Comprehensive income attributable to non-controlling interests

   0

   2

3. Consolidated Statements of Changes in Equity

For the fiscal year ended March 31, 2024

(Millions of yen)

For the fiscal year ended March 31, 2025

(Millions of yen)