Consolidated Financial Results for the Three Months Ended June 30, 2025 (Under Japanese GAAP)

August 5, 2025

Listing: Tokyo Stock Exchange

Securities code: 9303

URL: https://www.sumitomo-soko.co.jp/

Representative: Akihito Nagata, President

Inquiries: Masaya Arakawa, General Manager, Finance & Accounting Department

Telephone: +81 6 6444 1183

Scheduled date to commence dividend payments: － Preparation of supplementary material on quarterly financial results: None Holding of quarterly 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 (from April 1, 2025 to June 30, 2025)

   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Operating revenue		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      June 30, 2025	47,875	3.2	2,739	(14.3)	4,756	(7.0)	3,155	(3.6)
      June 30, 2024	46,396	(0.6)	3,194	(4.4)	5,114	(0.9)	3,273	(7.0)

      Note: Comprehensive income:

      For the three months ended June 30, 2025: ¥6,274 million [6.0%] For the three months ended June 30, 2024: ¥5,920 million [(68.5)%]

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      June 30, 2025	40.92	40.89
      June 30, 2024	41.66	41.61

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio
      As of	Millions of yen	Millions of yen	%
      June 30, 2025	439,566	275,049	60.2
      March 31, 2025	439,847	274,145	60.0

      Note: Equity

      As of June 30, 2025: ¥264,627 million As of March 31, 2025: ¥263,758 million

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended March 31, 2025	-	50.50	-	52.50	103.00
   Fiscal year ending March 31, 2026	-
   Fiscal year ending March 31, 2026 (Forecast)		51.50	-	51.50	103.00

   Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated forecasts for the year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

Note: Revisions to the financial forecast most recently announced: None

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

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

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): As of June 30, 2025 : 77,747,315 shares

      As of March 31, 2025 : 77,747,315 shares

   2. Number of treasury shares at the end of the period: As of June 30, 2025 : 825,736 shares

      As of March 31, 2025 : 438,956 shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year): Three months ended June 30, 2025 : 77,121,186 shares

Three months ended June 30, 2024 : 78,569,466 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

The forecasts are based on information currently available and certain assumptions judged to be reasonable. The Company's actual results may differ materially from the forecasts as a result of numerous factors outside of the Company's control.

Attached Materials Index

1. Overview of Operating Results under Review ............................................................................................. 2

   1. Overview of Operating Results ............................................................................................................... 2

   2. Overview of Financial Position ............................................................................................................... 3

   3. Explanation of Forward-Looking Statements such as Consolidated Forecasts ....................................... 4

2. Quarterly Consolidated Financial Results and Significant Notes ............................................................... 5

   1. Quarterly Consolidated Balance Sheets .................................................................................................. 5

   2. Quarterly Consolidated Statements of Income

      7

      and Quarterly Consolidated Statements of Comprehensive Income ......................................................

   3. Quarterly Consolidated Statements of Cash Flows ................................................................................ 10

   4. Notes to Quarterly Consolidated Financial Statements .......................................................................... 11

(Notes on accounting treatment specific to the preparation of quarterly consolidated financial

11

statements) ..............................................................................................................................................

(Notes on consolidated statement of income) 11

(Notes on segment information) .............................................................................................................. 12

(Notes when there are significant changes in amounts of shareholders'equity) ...................................... 13

(Notes on premise of going concern) ....................................................................................................... 13

(Notes on quarterly consolidated statements of cash flows) .................................................................... 13

1. Overview of Operating Results under Review

   1. Overview of Operating Results

      In the economic environment during the three months ended June 30, 2025, the economy in Japan showed a gradual recovery trend with consumer spending being seen to recover and both capital investment and production undergoing moderate improvement. Meanwhile, the outlook is uncertain due to factors such as the impact of continued price increases and U.S. trade policy. Overseas, while the U.S. economy expanded against a backdrop of strong employment and consumption, in China, the real estate market remained sluggish and the economy continued to stagnate.

      Under these circumstances, the Group has been implementing various measures aimed at sustained growth by concentrating management resources on the core businesses of logistics and real estate based on the business strategy stated in the Medium-Term Business Plan for FY2023 to FY2025.

      In the logistics business, we worked to expand our logistics bases by starting construction of a new warehouse in Hamamatsu City, Shizuoka. In the real estate business, we expanded the scale of our revenue, such as acquiring a real estate property for lease in Joto-ku, Osaka. Furthermore, we proceeded to collect appropriate fees in response to rising costs across all aspects of our business.

      As a result of these efforts, operating revenue for the three months ended June 30, 2025 was ¥47,875 million (up 3.2% year on year) due to higher harbor transportation income and international transportation income, but operating profit was ¥2,739 million (down 14.3% year on year) due to factors such as increases in personal expenses, depreciation and taxes and dues. In addition, ordinary profit was ¥4,756 million (down 7.0% year on year) and profit attributable to owners of parent was ¥3,155 million (down 3.6% year on year).

      Segment results are as follows.

      1. Logistics business

         Although we made efforts to receive appropriate fees throughout business in general, in warehousing, warehouse income was ¥8,214 million (up 3.4% year on year) due to factors such as an increase in the handling of parts for transportation equipment. In harbor transportation, harbor transportation income was ¥8,366 million (up 9.1% year on year) due to an increase in general cargo handling and container cargo handling. In international transportation, international transportation income was ¥12,972 million (up 3.7% year on year) due to increases in international multimodal transportation and airfreight handling. In other operations, land transportation and other income was ¥15,796 million (up 0.7% year on year) mainly due to strong performance at the information system subsidiary.

         As a result of the above, operating revenue for the logistics business as a whole was ¥45,349 million (up 3.5% year on year), but operating profit was ¥3,257 million (down 2.6% year on year) mainly due to increases in personnel expenses and depreciation, etc.

      2. Real estate business

      In the real estate business, although the real estate for lease acquired in the previous fiscal year made a contribution, operating revenue was ¥2,670 million (down 2.4% year on year) due to a decrease in rental income resulting from the departure of tenants from the Company's buildings eligible for compensation. Operating profit was ¥994 million (down 21.9% year on year) due to lower income and the occurrence of one-time taxes at the time of acquisition.

      Notes: 1. The operating revenue for the segments above includes inter-segment revenue of ¥144 million (¥154 million in the same period of the previous fiscal year).

2. The operating profit for the segments above is the profit before deduction of company-wide expenses, etc., that do not belong to each segment, amounting to ¥1,512 million (¥1,423 million in the same period of the previous fiscal year).

Details of operating revenue by segment

1. Overview of Financial Position

   1. Assets, Liabilities and Net assets

      Total assets decreased by 0.1% from the end of the previous fiscal year to ¥439,566 million due to a decrease in "cash and deposits" resulting from dividend payments, despite an increase in "investment securities" associated with the rise in stock prices. Total liabilities decreased by 0.7% from the end of the previous fiscal year to

      ¥164,517 million, mainly due to a decrease in "income taxes payable" as a result of tax payments, despite an increase in "deferred tax liabilities" related to valuation differences on investment securities. While we recorded a profit, total net assets increased by 0.3% from the end of the previous fiscal year to ¥275,049 million due to factors such as an increase in "valuation difference on available-for-sale securities" associated with rising stock prices, despite a decrease in "retained earnings" associated with the payment of year-end dividends and the purchase of treasury shares.

   2. Cash Flows

   (Cash flows from operating activities)

   Net cash provided by operating activities amounted to ¥6,730 million (¥5,089 million provided in the same period of the previous fiscal year), mainly due to the recording of profit before income taxes and the retention of funds from depreciation.

   (Cash flows from investing activities)

   Net cash used in investing activities amounted to ¥5,530 million (¥409 million used in the same period of the previous fiscal year), mainly due to the purchase of property, plant and equipment.

   (Cash flows from financing activities)

   Net cash used in financing activities amounted to ¥5,738 million (¥5,801 million used in the same period of the previous fiscal year), mainly due to dividend payments and the purchase of treasury shares.

   The total consolidated net cash used in the three months ended June 30, 2025, including the above results and the "effect of exchange rate change on cash and cash equivalents" (decrease of ¥300 million), was a decrease of

   ¥4,839 million, resulting in a balance of ¥40,111 million in cash and cash equivalents at the end of the period.

2. Explanation of Forward-Looking Statements such as Consolidated Forecasts

As results for the three months ended June 30, 2025 have been generally in line with plans, the consolidated earnings forecasts for the six months ending September 30, 2025 (interim period) and the full year have been maintained at the figures announced on May 9, 2025.

2. Quarterly Consolidated Financial Results and Significant Notes

1. Quarterly Consolidated Balance Sheets

   Assets

   Current assets

   (Millions of yen) As of March 31, 2025 As of June 30, 2025

   Cash and deposits	47,850	42,890
   Notes and accounts receivable-trade	21,515	20,908
   Real estate for sale	2,666	2,662
   Other	11,857	8,454
   Allowance for doubtful accounts	(101)	(99)
   Total current assets	83,787	74,817
   Non-current assets Property, plant and equipment Buildings and structures, net	91,790	91,415
   Machinery, equipment and vehicles, net	6,975	6,935
   Vessels, net	362	347
   Tools, furniture and fixtures, net	987	1,096
   Land	77,664	79,888
   Construction in progress	2,081	2,068
   Other, net	3,353	4,157
   Total property, plant and equipment	183,214	185,910
   Intangible assets
   Leasehold interests in land	5,138	5,138
   Software	1,517	1,425
   Other	474	489
   Total intangible assets	7,130	7,052
   Investments and other assets
   Investment securities	155,645	161,713
   Long-term loans receivable	233	278
   Retirement benefit asset	2,795	2,753
   Deferred tax assets	790	811
   Other	6,667	6,643
   Allowance for doubtful accounts	(418)	(414)
   Total investments and other assets	165,714	171,785
   Total non-current assets	356,059	364,749
   Total assets	439,847	439,566

   Liabilities

   Current liabilities

   (Millions of yen) As of March 31, 2025 As of June 30, 2025

   Notes and accounts payable-trade	11,731	11,721
   Short-term borrowings	11,918	15,863
   Current portion of bonds payable	12,000	12,000
   Income taxes payable	3,767	1,020
   Provision for bonuses	1,652	805
   Other	9,965	9,810
   Total current liabilities	51,036	51,220
   Non-current liabilities Bonds payable	25,000	25,000
   Long-term borrowings	30,492	26,220
   Deferred tax liabilities Provision for retirement benefits for directors (and other officers) Retirement benefit liability	46,565 116 2,691	48,801 65 2,718
   Long-term deposits received	7,809	7,857
   Other	1,990	2,633
   Total non-current liabilities	114,664	113,296
   Total liabilities	165,701	164,517

   Net assets Shareholders' equity

   Share capital	14,922	14,922
   Capital surplus	12,347	12,347
   Retained earnings	142,590	141,680
   Treasury shares	(1,117)	(2,273)
   Total shareholders' equity	168,743	166,676
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	83,352	87,627
   Foreign currency translation adjustment	8,137	6,897
   Remeasurements of defined benefit plans	3,525	3,425
   Total accumulated other comprehensive income	95,014	97,950
   Share acquisition rights	75	71
   Non-controlling interests	10,311	10,349
   Total net assets	274,145	275,049
   Total liabilities and net assets	439,847	439,566

2. Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

   (Quarterly Consolidated Statements of Income)

   (Millions of yen)

   	Three months ended	Three months ended
   	June 30, 2024	June 30, 2025
   Operating revenue Warehouse income	7,944	8,214
   Harbor transportation income	7,671	8,366
   International transportation income	12,513	12,972
   Land transportation income	12,438	12,416
   Rent income of warehouse and logistics facilities	1,490	1,552
   Real estate lease revenue	2,566	2,501
   Other	1,771	1,851
   Total operating revenue	46,396	47,875
   Operating costs
   Cost of sales	25,454	26,888
   Personal expenses	7,309	7,520
   Rent expenses	2,390	2,078
   Taxes and dues	644	686
   Depreciation	2,457	2,600
   Other	2,554	2,677
   Total operating costs	40,811	42,451
   Operating gross profit	5,584	5,423
   Selling, general and administrative expenses
   Salaries, allowances and welfare expenses	1,364	1,482
   Provision for bonuses	55	47
   Retirement benefit expenses	25	25
   Other	944	1,129
   Total selling, general and administrative expenses	2,389	2,684
   Operating profit	3,194	2,739
   Non-operating income
   Interest and dividend income	1,867	2,039
   Share of profit of entities accounted for using equity method	34	16
   Other	250	114
   Total non-operating income	2,152	2,171
   Non-operating expenses
   Interest expenses	107	126
   Provision of allowance for doubtful accounts	105	0
   Other	19	27
   Total non-operating expenses	232	154
   Ordinary profit	5,114	4,756

   (Millions of yen)

   	Three months ended	Three months ended
   	June 30, 2024	June 30, 2025
   Extraordinary income Compensation income	-	*212
   Total extraordinary income	-	212
   Extraordinary losses
   Loss on retirement of non-current assets	22	127
   Total extraordinary losses	22	127
   Profit before income taxes	5,092	4,841
   Income taxes-current	1,305	1,119
   Income taxes-deferred	269	343
   Total income taxes	1,575	1,462
   Profit	3,516	3,378
   Profit attributable to non-controlling interests	243	222
   Profit attributable to owners of parent	3,273	3,155

   (Quarterly Consolidated Statements of Comprehensive Income)		(Millions of yen)
   	Three months ended June 30, 2024	Three months ended June 30, 2025
   Profit	3,516	3,378
   Other comprehensive income
   Valuation difference on available-for-sale securities	1,512	4,327
   Foreign currency translation adjustment	793	(1,103)
   Remeasurements of defined benefit plans, net of tax	(84)	(100)
   Share of other comprehensive income of entities accounted for using equity method	182	(227)
   Total other comprehensive income	2,403	2,895
   Comprehensive income	5,920	6,274
   (Comprehensive income attributable to)
   Owners of parent	5,617	6,091
   Non-controlling interests	303	182

3. Quarterly Consolidated Statements of Cash Flows

   (Millions of yen)

   Three months ended Three months ended

   	June 30, 2024	June 30, 2025
   Cash flows from operating activities
   Profit before income taxes	5,092	4,841
   Depreciation	2,553	2,697
   Compensation income	-	(212)
   Increase (decrease) in provisions	(584)	(896)
   Interest and dividend income	(1,867)	(2,039)
   Interest expenses	107	126
   Share of loss (profit) of entities accounted for using equity method	(34)	(16)
   Loss on retirement of non-current assets	22	127
   Decrease (increase) in trade receivables	(31)	412
   Increase (decrease) in trade payables	(416)	86
   Other, net	697	(901)
   Subtotal	5,538	4,225
   Interest and dividends received	1,835	2,059
   Interest paid	(87)	(100)
   Proceeds from compensation	-	4,224
   Income taxes paid	(2,197)	(3,678)
   Net cash provided by (used in) operating activities	5,089	6,730
   Cash flows from investing activities
   Payments into time deposits	(816)	(416)
   Proceeds from withdrawal of time deposits	1,920	412
   Purchase of property, plant and equipment	(1,477)	(5,282)
   Proceeds from sale of property, plant and equipment	12	20
   Purchase of intangible assets	(223)	(115)
   Purchase of investment securities	(15)	(40)
   Proceeds from collection of loans receivable	4	5
   Other, net	185	(112)
   Net cash provided by (used in) investing activities	(409)	(5,530)
   Cash flows from financing activities
   Proceeds from short-term borrowings	310	110
   Repayments of short-term borrowings	(809)	(114)
   Repayments of long-term borrowings	(301)	(323)
   Purchase of treasury shares	(955)	(1,168)
   Dividends paid	(3,637)	(3,721)
   Dividends paid to non-controlling interests	(138)	(144)
   Other, net	(269)	(377)
   Net cash provided by (used in) financing activities	(5,801)	(5,738)
   Effect of exchange rate change on cash and cash equivalents	268	(300)
   Net increase (decrease) in cash and cash equivalents	(853)	(4,839)
   Cash and cash equivalents at beginning of period	47,947	44,950
   Cash and cash equivalents at end of period	*47,094	*40,111

4. Notes to Quarterly Consolidated Financial Statements

(Notes on accounting treatment specific to the preparation of quarterly consolidated financial statements) (Calculation of tax expenses)

Some consolidated subsidiaries calculate tax expenses by reasonably estimating the effective tax rate after applying tax effect accounting to profit before income taxes for the consolidated fiscal year including the three months ended June 30, 2025, and multiplying profit before income taxes by the estimated effective tax rate.

(Notes on consolidated statement of income)

* Compensation income Year ended June 30, 2024

Not applicable.

Year ended June 30, 2025

The compensation for relocation of properties and the consideration for establishment of sectional surface rights, etc., arising from the passage of the railway under the Company's land and buildings due to the 'Naniwasuji Line Project' (Note).

(Note) A new railway construction project connecting the 'Umekita Area' of Osaka Station, which opened in March 2023, with JR Namba Station and Nankai Main Line Shin-Imamiya Station. Kansai High-Speed Railway Co., Ltd. has ownership of and is responsible for the development of the railway facilities, and West Japan Railway Company and Nankai Electric Railway Co., Ltd. are planned to operate passenger services.

(Notes on segment information)

Information related to operating revenue and income by reportable segment I Three months ended June 30, 2024

(Millions of yen)

Notes: 1. The adjustment of ¥ (1,423) million in segment income includes company-wide expenses of ¥ (1,458) million which are not allocated to the respective reportable segments. Company-wide expenses consist mainly of the expenses assignable to neither of the reportable segments for administrative departments of the Company and some of its consolidated subsidiaries.

2. Segment income is adjusted to coincide with operating profit as recorded on the quarterly consolidated statements of income.

II Three months ended June 30, 2025

(Millions of yen)

Notes: 1. The adjustment of ¥ (1,512) million in segment income includes company-wide expenses of ¥ (1,585) million which are not allocated to the respective reportable segments. Company-wide expenses consist mainly of the expenses assignable to neither of the reportable segments for administrative departments of the Company and some of its consolidated subsidiaries.

2. Segment income is adjusted to coincide with operating profit as recorded on the quarterly consolidated statements of income.

(Notes when there are significant changes in amounts of shareholders' equity) Treasury shares acquisition

The Company acquired 390,700 shares and ¥1,167 million pursuant to the resolution at the meeting of the Company's Board of Directors held on May 9, 2025 during the period three months ended June 30, 2025.

(Reference) Details of the resolution at the meeting of the Company's Board of Directors held on May 9, 2025

1. Treasury shares acquisition

   1. Total number of shares to be acquired Up to 1,200,000 shares (maximum)

      (1.55% of total number of shares issued (excluding treasury shares))

   2. Total amount of costs to be acquired Up to ¥3,500 million (maximum)

   3. Acquisition period From May 12, 2025 to November 28, 2025

2. Treasury shares retirement

   1. Total number of shares to be retired All the common shares to be acquired pursuant to 1 above

   2. Scheduled date of retirement March 31, 2026

(Notes on premise of going concern) Not applicable.

(Notes on quarterly consolidated statements of cash flows)

* Reconciliation of ending balance of cash and cash equivalents with account balances per quarterly consolidated balance sheet

Three months ended June 30, 2024

(Millions of yen) Three months ended

June 30, 2025

Cash and deposits 50,356 42,890

Time deposits with maturity over three months (3,261) (2,779)

Cash and cash equivalents 47,094 40,111