Stanley Electric : Consolidated Financial Results for the Three Months Ended June 30, 2025

Consolidated Financial Results

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

July 31, 2025

Company name: Stanley Electric Co., Ltd. Listing: Tokyo

Securities code: 6923

URL: https://www.stanley-electric.com

Representative: Yasuaki Kaizumi, President and Representative Director

Inquiries: Ikuo Kuwata, Executive Officer, Executive General Manager, Corporate Administration Division Telephone: +81-3-6866-2222

Scheduled date to commence dividend payments: -Preparation of supplementary material on financial results: Yes 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 119,838 121,441	% (1.3) 8.7	Millions of yen 8,607 9,535	% (9.7) 160.2	Millions of yen 10,229 11,714	% (12.7) 69.1	Millions of yen 5,156 12,381	% (58.4) 427.5

      (Note) Comprehensive income:	Three months ended June 30, 2025:	¥	482 million [	(98.4) %]
      	Three months ended June 30, 2024:	¥	30,398 million [	(5.3) %]

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      June 30, 2025	34.58	34.58
      June 30, 2024	77.20	77.20

      (Note)In the fiscal year ending March 2025, we finalized the provisional accounting treatment related to a business combination. Accordingly, the figures for the first quarter of the fiscal year ending March 2025 reflect the finalized accounting adjustments.

      As a result, the gain on bargain purchase (recorded as extraordinary income) for the first quarter increased by 6,558 million yen from the previously reported 3,502 million yen, totaling 10,060 million yen. Profit attributable to owners of parent also increased by 6,558 million yen.

   2. Consolidated Financial Position

   	Total assets	Net assets	Capital adequacy ratio
   As of June 30, 2025 March 31, 2025	Millions of yen 741,631 749,605	Millions of yen 586,964 598,906	% 64.6 64.8

   (Reference) Equity: As of June 30, 2025: ¥ 478,914 million

   As of March 31, 2025: ¥ 485,499 million

   ―1―

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 32.00	Yen -	Yen 40.00	Yen 72.00
   Fiscal year ending March 31, 2026 (Forecast)		46.00	-	46.00	92.00

   (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.)

(Note) Revision to the financial results forecast announced most recently: None

* Notes:

1. Significant changes in the scope of consolidation during the period: Yes

   Excluded: １ (Company name: Stanley Tsuruoka Manufacturing Co., LTD. )

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

3. 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

4. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): June 30, 2025: 152,000,000 shares

      March 31, 2025: 152,000,000 shares

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

      June 30, 2025: 2,889,279 shares

      March 31, 2025: 2,887,924 shares

   3. Average number of shares outstanding during the period:

Three months ended June 30, 2025: 149,111,349 shares

Three months ended June 30, 2024: 160,380,381 shares

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes(voluntary)

• Proper use of earnings forecasts, and other special matters

At this point in time, there are no changes to the consolidated business forecasts.

The Company made these projections in forecasts based on currently available economic and business information; as such, these projections include certain risks and other uncertainties, and the Company does not intend to guarantee the achievement of these projections. Actual business performance may differ significantly from current projections resulting from various critical factors.

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Quarterly Consolidated Financial Statements and Primary Notes Quarterly Consolidated Balance Sheet

(Millions of yen)

As of March 31, 2025

As of June 30, 2025

Assets

Provision for retirement benefits for directors (and other officers)

24

26

(Millions of yen)

As of March 31, 2025 As of June 30, 2025

Liabilities

Current liabilities

Notes and accounts payable - trade 40,995 43,202

Lease liabilities 1,619 1,651

Income taxes payable 4,535 4,896

Provision for product warranties 7,360 6,839

Provision for bonuses 5,892 3,670

Provision for bonuses for directors (and other officers)

286 101

Other 30,325 34,206

Total current liabilities 91,015 94,568 Non-current liabilities

Bonds payable 40,000 40,000

Lease liabilities 2,956 2,804

Deferred tax liabilities 13,024 13,120

Other provisions 28 28

Retirement benefit liability 2,980 3,133

Asset retirement obligations 483 583

Other 184 401

Total non-current liabilities 59,682 60,099

Total liabilities 150,698 154,667

Net assets

Shareholders' equity

Share capital 30,514 30,514

Capital surplus 19,097 19,172

Retained earnings 358,372 357,564

Treasury shares (7,668) (7,669)

Total shareholders' equity 400,316 399,583 Accumulated other comprehensive income

Valuation difference on available-for-sale securities

31,735 31,231

Foreign currency translation adjustment 51,001 45,832

Remeasurements of defined benefit plans 2,445 2,266

Total accumulated other comprehensive income 85,183 79,331

Share acquisition rights 392 400

Non-controlling interests 113,014 107,649

Total net assets 598,906 586,964

Total liabilities and net assets 749,605 741,631

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statement of Income For the three months ended June 30, 2025

For the three months ended June 30, 2024

(Millions of yen)

For the three months ended June 30, 2025

Net sales 121,441 119,838

Cost of sales 97,951 96,138

Gross profit 23,489 23,700

Selling, general and administrative expenses 13,954 15,092

Operating profit 9,535 8,607

Non-operating income

Interest income 1,309 1,041

Share of profit of entities accounted for using equity method

107

319

Dividend income 357 40

Foreign exchange gains 536 313

Miscellaneous income 202 148

Total non-operating income 2,513 1,863 Non-operating expenses

Interest expenses 88 142

Bond issuance costs 95 -

Miscellaneous losses 151 98

Total non-operating expenses 334 240

Ordinary profit 11,714 10,229

Extraordinary income

Gain on sale of non-current assets 18 16

Gain on bargain purchase 10,060 -

Total extraordinary income 10,079 16

Extraordinary losses

Loss on step acquisitions 1,130 -

Impairment losses 224 -

Loss on retirement of non-current assets 976 136

Business restructuring expenses - 4

Extra retirement payments 724 85

Loss on abandonment of inventories 301 -

Special survey costs 49 11

Total extraordinary losses 3,407 238

Profit before income taxes 18,386 10,008

Income taxes 3,678 3,217

Profit 14,707 6,790

Profit attributable to non-controlling interests 2,326 1,634

Profit attributable to owners of parent 12,381 5,156

Comprehensive income attributable to owners of parent

23,293 (695)

Comprehensive income attributable to non-controlling interests

7,105

1,178

(Notes on segment information, etc.) Segment information

Sales and profit or loss by reportable segment

For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)

(Millions of Yen)

Notes: 1. "Others" mainly includes the following project and services not included in the reportable segments: the project for promotion of employment of the physically disabled; and financial and management services provided within the Stanley Group.

1. ​(2,129) million yen adjustment to segment income (loss) mainly includes company-wide expenses not included in the reportable segments of (2,097) million yen. The company-wide expenses are mainly general research and development expenses and administrative expenses, which are not attributable to the reportable segments.

2. Segment income (loss) is adjusted to be consistent with operating income shown on the quarterly consolidated statements of income.

For the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)

(Millions of Yen)

Notes: 1. "Others" mainly includes the following project and services not included in the reportable segments: the project for promotion of employment of the physically disabled; and financial and management services provided within the Stanley Group.

1. (4,069) million yen adjustment to segment income (loss) mainly includes company-wide expenses not included in the reportable segments of (3,813) million yen. The company-wide expenses are mainly general research and development expenses and administrative expenses, which are not attributable to the reportable segments.

2. Segment income (loss) is adjusted to be consistent with operating income shown on the consolidated financial statements.