Consolidated Financial Results for the First Quarter of FY2026 (JGAAP)

(January 1, 2026 -March 31, 2026) April 23, 2026

Company Name: Shimano Inc. Stock Exchange: Tokyo, Prime Market

Code Number: 7309 URL: https://www.shimano.com

Representative: Taizo Shimano, President

Contact: Takuma Kanai, Senior Executive Officer Telephone: +81-72-223-3254 Scheduled payment date for dividends: -

Supplemental information: Yes

Financial results briefing: No

(Amounts are rounded down to the nearest million yen.)

1. Consolidated financial results for the first quarter of FY2026 (January 1, 2026 - March 31, 2026)

   1. Consolidated income information (The percentages represent the rates of increase (decrease) compared to the corresponding prior period.)

      	Net sales		Operating income		Ordinary income		Net income attributable to owners of parent
      	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      First quarter of FY2026	117,644	3.6	10,400	(35.6)	14,885	(3.4)	12,814	30.9
      First quarter of FY2025	113,539	12.9	16,142	20.3	15,404	(46.6)	9,786	(58.7)

      (Note) Comprehensive income First quarter of FY2026: 20,158 million yen (-%) First quarter of FY2025: (16,151) million yen (-%)

      	Basic earnings per share	Diluted earnings per share
      	Yen	Yen
      First quarter of FY2026	148.45	-
      First quarter of FY2025	110.20	-

   2. Consolidated balance sheet information

   	Total assets	Net assets	Shareholders' equity ratio
   	Million yen	Million yen	%
   First quarter of FY2026	937,382	867,990	92.4
   FY2025	938,250	869,501	92.5

   (Reference) Shareholders' equity First quarter of FY2026: 866,600 million yen FY2025: 868,256 million yen

2. Dividend information

   	Dividend per share
   	1st Quarter	2nd Quarter	3rd Quarter	Year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   FY2025	-	169.50	-	169.50	339.00
   FY2026	-
   FY2026 (Forecast)		181.50	-	181.50	363.00

   (Note) Change in forecasted dividend during the period: None

3. Forecasted consolidated business performance for FY2026 (January 1, 2026 - December 31, 2026)

(The percentages represent the rates of increase (decrease) compared to the corresponding prior period.)

(Note) Change in forecasted consolidated business performance during the period: Yes

*Notes

1. Significant changes in the scope of consolidation during the period: None

2. Application of accounting treatment specific to preparation of quarterly consolidated financial statements: None

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

   ① Changes in accounting policies in accordance with revision of accounting standards: None

   ② Changes in accounting policies other than ① above: None

   ③ Changes in accounting estimates: None

   ④ Retrospective restatement: None

4. Number of shares of common stock issued

① Number of shares of common stock issued at period-end (including treasury stock):

② Number of shares of treasury stock at period-end:

③ Average number of shares during the period (cumulative from the beginning of the fiscal year):

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

Explanation regarding the appropriate use of forecasts of business performance and other special items

The forecasts of consolidated business performance and other forward-looking statements contained in this document are based on information currently available to the Company and certain assumptions that management believes reasonable and actual business performance may differ materially from those described in such statements due to various factors. For details of assumptions for the forecasts and other related items, please refer to page 3 of the attached document. Shimano Inc. accepts no liability whatsoever for any direct or consequential loss arising from any use of this document.

○Table of contents of the attached document

1. Overview of Business Results 2

   1. Overview of Operations for the Period under Review 2

   2. Overview of Financial Position for the Period under Review 3

   3. Forecast for the Fiscal Year Ending December 31, 2026 3

2. Consolidated Financial Statements and Primary Notes 4

   1. Consolidated Balance Sheets 4

   2. Consolidated Statements of Income and Comprehensive Income 6

   3. Notes relating to Consolidated Financial Statements 8

(Note concerning Assumption of Going Concern) 8

(Note on Significant Change in the Amount of Shareholders' Equity) 8

(Notes relating to Consolidated Statements of Income) 8

(Note on Segment Information) 9

(Note on Statements of Cash Flows) 10

1. Overview of Business Results

   1. Overview of Operations for the Period under Review

      During the first quarter of fiscal year 2026, the global economy generally maintained a solid growth trajectory. However, views on the economic outlook continued to be cautious against a backdrop of regional disparities in business sentiment, trends in trade policies, and rising energy prices caused by escalating tensions in the Middle East.

      In Europe, personal consumption remained strong due to a favorable employment and income environment, and the economy maintained a moderate recovery trend, mainly driven by domestic demand.

      In the U.S., the previously strong economy came to a standstill amid lackluster personal consumption due to price increases resulting from tariff policies, despite signs of recovery in the employment environment.

      In China, the economy remained weak due to the prolonged slump in the real estate sector and a slowdown in personal consumption.

      In Japan, although rising energy prices posed a risk to the economic outlook, continued improvements in the income environment underpinned personal consumption, and the economy maintained moderate growth.

      In this environment, demand for bicycles and fishing tackle continued to be weak, and for the first quarter of fiscal year 2026, net sales increased 3.6% from the same period of the previous year to 117,644 million yen. Operating income decreased 35.6% to 10,400 million yen, ordinary income decreased 3.4% to 14,885 million yen, and net income attributable to owners of parent increased 30.9% to 12,814 million yen.

      Reportable Segment Overview

      ① Bicycle Components

      While the strong interest in bicycles continued as a long-term trend, adjustments of market inventories made gradual progress, despite regional differences.

      Overseas, in the European market, retail sales of completed bicycles were somewhat weak with the onset of the winter off-peak season, and market inventories remained at a somewhat high level.

      In the North American market, while retail sales of completed bicycles remained weak due to an uncertain economic outlook, market inventories remained at an appropriate level.

      In the Asian and Central and South American markets, retail sales of completed bicycles remained weak against the backdrop of lackluster personal consumption, and market inventories remained somewhat high. In addition, in the Chinese market, while interest in cycling as a sport remained firm, retail sales stagnated, and market inventories remained at a somewhat high level.

      In the Oceanian market, retail sales remained strong, and market inventories maintained appropriate levels.

      In the Japanese market, retail sales remained weak due to the soaring price of completed bicycles and rising prices, but market inventories maintained appropriate levels.

      Under these market conditions, the Shimano Group's products continued to be well received, including XTR, the flagship model in our renewed components for mountain bikes, as well as the DEORE XT and DEORE series, while Q'AUTO, which features self-powered automatic gear-shifting function, also received increased attention.

      As a result, net sales from this segment decreased 0.7% from the same period of the previous year to 87,361 million yen, and operating income decreased 46.3% to 7,792 million yen.

      ② Fishing Tackle

      Interest in fishing tackle remained firm, sales remained robust overall, and market inventories maintained appropriate levels.

      In the Japanese market, although sales were lackluster amid a slump in personal consumption resulting from rising prices, adjustments of market inventories made progress.

      Overseas, in the North American market, demand was firm and sales remained strong, despite a cold wave, and market inventories maintained appropriate levels.

      In the European market, sales continued to be strong, and market inventories remained at an appropriate level.

      In the Asian market, sales were strong, supported by ongoing robust demand for high-priced products mainly in the Chinese market, and market inventories remained at an appropriate level.

      In the Australian market, sales remained strong and market inventories maintained appropriate levels, against a backdrop of good weather conditions and favorable fishing conditions.

      Under these market conditions, the new bass rod ZODIAS was well-received in the market. In addition, order-taking continued to be brisk for spinning reels STELLA SW and STRADIC.

      As a result, net sales from this segment increased 18.5% from the same period of the previous year to

      30,175 million yen, and operating income increased 58.6% to 2,596 million yen.

      ③ Others

      Net sales from this segment increased 10.2% from the same period of the previous year to 108 million yen and operating income of 12 million yen was recorded, compared with an operating income of 1 million yen for the same period of the previous year.

   2. Overview of Financial Position for the Period under Review Assets, Liabilities and Net Assets

      Total assets as of the end of the first quarter of fiscal year 2026 amounted to 937,382 million yen, a decrease

      of 867 million yen compared with the figure as of the previous fiscal year-end. The principal factors included an increase of 24,397 million yen in buildings and structures, an increase of 10,127 million yen in notes and accounts receivable - trade, an increase of 5,956 million yen in merchandise and finished goods, an increase of 2,952 million yen in investment securities, a decrease of 26,814 million yen in cash and time deposits, and a decrease of 19,812 million yen in construction in progress.

      Total liabilities amounted to 69,392 million yen, an increase of 644 million yen compared with the figure as of the previous fiscal year-end. The principal factors included an increase of 2,419 million yen in others under current liabilities, an increase of 1,873 million yen in accounts payable - trade, and a decrease of 2,942 million yen in income taxes payable.

      Net assets amounted to 867,990 million yen, a decrease of 1,511 million yen compared with the figure as of the previous fiscal year-end. The principal factors included an increase of 8,881 million yen in foreign currency translation adjustments, a decrease of 7,088 million yen in acquisition of treasury stock, a decrease of 1,841 in retained earnings, and a decrease of 1,608 million yen in unrealized gain (loss) on other securities.

   3. Forecast for the Fiscal Year Ending December 31, 2026

   Regarding the consolidated business performance forecasts, while net sales and operating income remain unchanged from our initial projections, ordinary income and net income attributable to owners of parent have been revised as follows, in light of factors such as gain on sales of cross-shareholdings, which was initially expected as non-operating income, as extraordinary income during the first quarter of fiscal year 2026.

   The impact of the recent surge in crude oil prices and other matters due to escalating tensions in the Middle East has not been factored into the business performance forecasts as the outlook remains uncertain at this time.

   Revisions to consolidated business performance forecast figures for the first half of FY2026 (January 1, 2026 - June 30, 2026)

   	Net sales	Operating income	Ordinary income	Net income attributable to owners of parent	Basic earnings per share
   Previous forecast (A)	Million yen	Million yen	Million yen	Million yen	Yen
   	227,000	24,000	29,300	22,000	254.44
   Revised forecast (B)	227,000	24,000	29,300	24,000	278.96
   Difference (B-A)	0	0	0	2,000
   Change (%)	0.0	0.0	0.0	9.1
   First half results for FY2025	237,409	28,123	14,038	3,961	44.90

   Revisions to consolidated business performance forecast figures for the FY2026 (January 1, 2026 - December 31, 2026)

   	Net sales	Operating income	Ordinary income	Net income attributable to owners of parent	Basic earnings per share
   Previous forecast (A)	Million yen	Million yen	Million yen	Million yen	Yen
   	467,000	47,000	56,000	42,000	485.74
   Revised forecast (B)	467,000	47,000	53,300	42,000	488.19
   Difference (B-A)	0	0	(2,700)	0
   Change (%)	0.0	0.0	(4.8)	0.0
   Full year results for FY2025	466,243	51,677	47,029	33,991	388.17

2. Consolidated Financial Statements and Primary Notes

1. Consolidated Balance Sheets

   FY2025

   As of Dec. 31, 2025

   (Millions of yen) First quarter of FY2026

   As of Mar. 31, 2026

   Assets

   Current assets

   Cash and time deposits	477,324	450,510
   Notes and accounts receivable - trade	38,460	48,588
   Merchandise and finished goods	83,669	89,625
   Work in process	40,999	41,278
   Raw materials and supplies	7,328	7,244
   Others	18,837	16,993
   Allowance for doubtful accounts	(501)	(513)
   Total current assets	666,119	653,727

   Fixed assets

   Property, plant and equipment

   Buildings and structures (net)	97,623	122,021
   Machinery and vehicles (net)	31,587	32,793
   Land	15,815	17,145
   Leased assets (net)	6,040	6,058
   Construction in progress	43,940	24,128
   Others (net)	6,133	7,160
   Total property, plant and equipment	201,141	209,308
   Intangible assets Goodwill	1,455	1,372
   Software	18,091	17,730
   Others	9,775	10,957
   Total intangible assets	29,323	30,060
   Investments and other assets Investment securities	29,348	32,301
   Deferred income taxes	4,618	4,385
   Net defined benefit asset	5,550	5,535
   Others	2,627	2,543
   Allowance for doubtful accounts	(478)	(480)
   Total investments and other assets	41,665	44,286
   Total fixed assets	272,130	283,655
   Total assets	938,250	937,382

   Liabilities

   Current liabilities

   FY2025

   As of Dec. 31, 2025

   (Millions of yen) First quarter of FY2026

   As of Mar. 31, 2026

   Accounts payable-trade	16,774	18,647
   Income taxes payable	9,161	6,219
   Accrued employee bonuses	3,479	3,194
   Accrued officer bonuses	144	41
   Provision for product warranties	3,317	2,859
   Others	26,039	28,459
   Total current liabilities	58,917	59,421
   Long-term liabilities
   Deferred income taxes	2,449	2,602
   Net defined benefit liability	1,473	1,525
   Provision for product warranties	2,555	2,385
   Others	3,352	3,458
   Total long-term liabilities	9,830	9,971
   Total liabilities	68,748	69,392
   Net assets
   Shareholders' equity Common stock	35,613	35,613
   Capital surplus	5,324	5,324
   Retained earnings	630,717	628,876
   Treasury stock	(1,100)	(8,189)
   Total shareholders' equity	670,554	661,625
   Accumulated other comprehensive income Unrealized gain (loss) on other securities	10,144	8,536
   Foreign currency translation adjustments	187,557	196,438
   Total accumulated other comprehensive income	197,702	204,975
   Non-controlling interests	1,245	1,389
   Total net assets	869,501	867,990
   Total liabilities and net assets	938,250	937,382

2. Consolidated Statements of Income and Comprehensive Income

   Consolidated Statements of Income		(Millions of yen)
   	First quarter of FY2025 Jan. 1, 2025 to Mar. 31, 2025	First quarter of FY2026 Jan. 1, 2026 to Mar. 31, 2026
   Net sales	113,539	117,644
   Cost of sales	68,442	75,787
   Gross profit	45,097	41,857
   Selling, general and administrative expenses	28,955	31,456
   Operating income	16,142	10,400
   Non-operating income
   Interest income	4,608	3,263
   Dividend income	92	153
   Foreign exchange gains	-	1,003
   Others	176	449
   Total non-operating income	4,878	4,870
   Non-operating expenses
   Interest expenses	28	23
   Contribution	11	124
   Foreign exchange losses	5,451	-
   Others	123	237
   Total non-operating expenses	5,615	385
   Ordinary income	15,404	14,885
   Extraordinary income
   Gain on sales of investment securities	-	*1	3,143
   Total extraordinary income	-		3,143
   Extraordinary losses
   Loss on factory reconstruction	7	385
   Total extraordinary losses	7	385
   Income before income taxes	15,397	17,643
   Income taxes-current	5,891	3,713
   Income taxes-deferred	(278)	1,070
   Total income taxes	5,613	4,784
   Net income	9,783	12,858
   Net income (loss) attributable to non-controlling interests	(2)	43
   Net income attributable to owners of parent	9,786	12,814

   Consolidated Statements of Comprehensive Income
   		(Millions of yen)
   	First quarter of FY2025 Jan. 1, 2025 to Mar. 31, 2025	First quarter of FY2026 Jan. 1, 2026 to Mar. 31, 2026
   Net income	9,783	12,858
   Other comprehensive income
   Unrealized gain (loss) on other securities	673	(1,608)
   Foreign currency translation adjustments	(26,608)	8,909
   Total other comprehensive income	(25,935)	7,300
   Comprehensive income	(16,151)	20,158
   (Breakdown)
   Comprehensive income attributable to owners of parent	(16,070)	20,087
   Comprehensive income attributable to non-controlling interests	(80)	71

3. Notes relating to Consolidated Financial Statements (Note concerning Assumption of Going Concern)

Not applicable.

(Note on Significant Change in the Amount of Shareholders' Equity) (Acquisition of treasury stock)

The Company acquired 432,500 shares of common stock from February 12, 2026 to March 31, 2026 through market purchases, including Off-auction Own Share Repurchase Trading (ToSTNeT-3) on the Tokyo Stock Exchange, based on the resolution of the Board of Directors meeting held on February 10, 2026. As a result, treasury stock increased by 7,088 million yen during the first quarter of fiscal year 2026, including the increase due to acquisition of fractional shares.

(Notes relating to Consolidated Statements of Income)

*1. Gain on sales of investment securities

First quarter of FY2026 (Jan. 1, 2026 - Mar. 31, 2026)

Gain on sales of investment securities was recorded following the sale of some investment securities (two listed stocks) held by the Shimano Group.

2. (Application of the "Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules, etc.")

The Group has applied Paragraph 7 of the "Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules, etc." (ASBJ Practical Solution No. 46, March 22, 2024), and has not recorded income taxes related to the global minimum tax amount for the fiscal year under review, including the first quarter of fiscal year 2026.

(Note on Segment Information)

First quarter of FY2025 (Jan. 1, 2025 - Mar. 31, 2025)

Information on net sales and income (loss) by reportable segment and disaggregation of revenue

(Millions of yen)

Notes: 1. There is no difference between total segment income (loss) and operating income in the consolidated statements of income.

2. Net sales includes revenue from contracts with customers and other revenue; however, most of the revenue is generated from contracts with customers, therefore other revenue is not deemed important and is thus not displayed separately.

First quarter of FY2026 (Jan. 1, 2026 - Mar. 31, 2026)

Information on net sales and income (loss) by reportable segment and disaggregation of revenue

(Millions of yen)

Notes: 1. There is no difference between total segment income (loss) and operating income in the consolidated statements of income.

2. Net sales includes revenue from contracts with customers and other revenue; however, most of the revenue is generated from contracts with customers, therefore other revenue is not deemed important and is thus not displayed separately.

(Note on Statements of Cash Flows)

The consolidated statements of cash flows for the first quarter of fiscal year 2026 have not been prepared. Depreciation and amortization (including amortization related to intangible assets other than goodwill) for the first quarter of fiscal year 2026 are as follows:

First quarter of FY2025 Jan. 1, 2025 to

Mar. 31, 2025

(Millions of yen) First quarter of FY2026

Jan. 1, 2026 to

Mar. 31, 2026

Depreciation and amortization 6,495 6,828