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 30, 2025

Company name: TSUBAKIMOTO CHAIN CO. Listing: Tokyo Stock Exchange

Securities code: 6371

URL: https://www.tsubakimoto.jp/

Representative: Takatoshi Kimura President and Representative Director

Inquiries: Takeshi Tamura Manager, Corporate Planning Department Telephone: +81-6-6441-0054

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 65,317 66,455	% (1.7) 7.3	Millions of yen 3,280 4,089	% (19.8) 5.4	Millions of yen 4,354 6,058	% (28.1) 10.3	Millions of yen 4,496 6,383	% (29.6) 98.1

      (Note) Comprehensive income:	Three months ended June 30, 2025:	¥	41 million [	(99.6) %]
      	Three months ended June 30, 2024:	¥	10,899 million [	(19.2) %]

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      June 30, 2025	44.17	-
      June 30, 2024	59.61	-

      (Note) Effective October 1, 2024, the Company split its common shares at a ratio of 1 to 3. Profit per share is calculated assuming that such stock split was conducted at the beginning of the previous consolidated fiscal year.

   2. Consolidated Financial Position

   	Total assets	Net assets	Capital adequacy ratio
   As of June 30, 2025 March 31, 2025	Millions of yen 360,304 371,510	Millions of yen 253,143 262,162	% 69.6 69.9

   (Reference) Equity: As of June 30, 2025:	¥	250,902 million
   As of March 31, 2025:	¥	259,810 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 99.00	Yen -	Yen 47.00	Yen -
   Fiscal year ending March 31, 2026 (Forecast)		40.00	-	40.00	80.00

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

   (Note) Effective October 1, 2024, the Company split its common shares at a ratio of 1 to 3. The dividend per share for the 2nd quarter-end of the fiscal year ended March 31, 2025 reflects the amount before the stock split. Accordingly, the total annual dividend per share is shown as "-." The dividend per share in the fiscal year ended March 31, 2025 factoring in the stock split is 33 yen for the 2nd quarter-end, and 80 yen for the full year.

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: None

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: 106,213,279 shares

      March 31, 2025: 106,213,279 shares

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

      June 30, 2025: 5,910,647 shares

      March 31, 2025: 3,648,863 shares

   3. Average number of shares outstanding during the period:

Three months ended June 30, 2025: 101,810,511 shares

Three months ended June 30, 2024: 107,088,987 shares

(Note) Effective October 1, 2024, the Company split its common shares at a ratio of 1 to 3. "Average number of shares outstanding during the period" is calculated assuming that the stock split was conducted at the beginning of the previous consolidated fiscal year.

• 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 consolidated financial results forecast is based on information available at the time this report was prepared and certain assumptions believed to be reasonable. However, it includes risks and uncertainties. Actual business results may differ materially from the forecast figures due to changes in business conditions, market trends, or fluctuations in currency exchange rates. Furthermore, factors that may affect business results are not limited to these factors.

• Table of Contents - Attachments

1. Summary of Business Results and Other Financial Information P.2

   1. Summary of Business Results of the Quarterly Consolidated Period .…………………………….……… P.2

   2. Summary of Financial Position in the Quarterly Consolidated Period ……………….………………… P.3

   3. Outlook …………………………………………………………………………………….……………… P.3

2. Quarterly Consolidated Financial Statements and Notes ………………………………….………………… P.4

   1. Quarterly Consolidated Balance Sheet ………………………………………………….………………… P.4

   2. Quarterly Consolidated Statement of Income and Quarterly Statement of Comprehensive Income ……… P.6

   3. Quarterly Consolidated Statement of Cash Flows ………………………………………………………… P.8

1. Summary of Business Results and Other Financial Information

1. Summary of Business Results of the Quarterly Consolidated Period

   Regarding the global economy in the three-month period ended June 30, 2025, despite intensified signs of a slowdown stemming from U.S. tariff policies, it remained on a moderate recovery path, supported by fiscal expansion and policy measures implemented by various countries. The U.S. economy, although experiencing a slowdown in personal consumption due to rising prices, remained firm, supported by solid corporate capital investment. Meanwhile, the European and Chinese economies also showed signs of recovery, driven by fiscal stimulus measures.

   In the Japanese economy, although corporate capital investment showed positive momentum, overall, it entered a pause phase due to increasing uncertainty in the export environment and lackluster personal consumption stemming from sluggish real income growth amid rising prices.

   Looking ahead to prospects for the global economy, despite downside risks such as uncertainty surrounding trade negotiations and heightened geopolitical tension, we anticipate it will remain on a recovery trajectory, backed by the economic policies of individual countries. As for the Japanese economy, while a continued recovery in inbound demand and increased capital investment aimed at addressing labor shortages are expected, we anticipate that the overall trend will remain weak, due to sluggish growth in real wages and a delayed recovery in personal consumption. Under this environment, building toward "What we want to be in 2030" that we set forth in the Long-Term Vision 2030, the Group will continue to focus on implementing various initiatives with an awareness of capital cost, as well as strengthening management control, in addition to fully delivering on the initiatives under the Mid-Term Management Plan 2025 started in fiscal 2021. As a business group contributing to finding solutions to social issues, we will continue to strive to further advance our sustainability activities including the achievement of carbon neutrality.

   Orders received by the Group for the three-month period were up 6.5% year on year to ¥70,781 million, while net sales decreased 1.7% year on year to ¥65,317 million.

   Regarding profit, operating profit decreased 19.8% year on year to ¥3,280 million, and ordinary profit decreased 28.1% year on year to ¥4,354 million, while profit attributable to owners of parent decreased 29.6% year on year to

   ¥4,496 million.

   Segment results are summarized as follows:

   [Chains]

   In the Chains segment, despite increased sales in Japan, the Americas, Europe, and the Indian Ocean Rim, net sales decreased year on year due to foreign exchange rates and other factors.

   The segment recorded a year-on-year increase of 9.1% in orders received to ¥24,762 million, and a year-on-year decrease of 1.2% in net sales to ¥23,365 million. Regarding profit, operating profit declined by 16.2% year on year to ¥3,227 million due to the impact of U.S. tariffs and other factors.

   [Motion Control]

   In the Motion Control segment, net sales were up year on year due to an increase in sales in Japan, the Americas, Europe, the Indian Ocean Rim, and China.

   The segment recorded year-on-year increases of 3.6% in orders received to ¥5,696 million, and 8.4% in net sales to

   ¥5,843 million. As a result, operating profit grew 38-fold to ¥114 million.

   [Mobility]

   In the Mobility segment, net sales increased year on year due to factors such as an increase in the sales of timing chain systems for automobile engines and other items at bases in Japan, the Americas, Europe, and China.

   The segment recorded year-on-year increases of 2.5% in orders received to ¥22,449 million, 2.2% in net sales to

   ¥22,358 million, and 38.0% in operating profit to ¥2,096 million.

   [Materials Handling Systems]

   In the Materials Handling Systems segment, net sales declined year on year, as sales increases of powder and grain conveyance systems in the Indian Ocean Rim and systems for the construction machinery industry and newspaper

   printing plants in Japan were offset by factors including the decline in sales in the Americas of systems for the automotive industry as well as metalworking chip handling and coolant processing systems.

   The segment recorded an increase in orders received of 9.2% year on year to ¥17,279 million and a decrease in net sales of 12.0% year on year to ¥13,150 million, resulting in an operating loss of ¥634 million (operating loss in the same period of the previous fiscal year was ¥558 million).

   [Other]

   Although orders received increased 3.1% year on year to ¥593 million, and net sales increased 3.0% year on year to

   ¥600 million, the segment recorded an operating loss of ¥179 million (operating loss in the same period of the previous fiscal year was ¥197 million).

2. Summary of Financial Position in the Quarterly Consolidated Period

   (Assets)

   Total assets as of June 30, 2025 were ¥360,304 million, down ¥11,205 million from the end of the previous consolidated fiscal year.

   Current assets totaled ¥186,823 million, a decrease of ¥6,489 million from the end of the previous consolidated fiscal year. This was partly due to a decrease of ¥4,215 million in "Notes and accounts receivable - trade, and contract assets" and a decrease of ¥3,054 million in "Cash and deposits," despite an increase of ¥1,111 million in inventories due to an increase in "Work in process" and other inventory items.

   Non-current assets amounted to ¥173,481 million, down ¥4,715 million from the end of the previous consolidated fiscal year. The decrease was partly attributable to a ¥2,862 million decrease in "Investment securities" owing to the sale of securities held by the Company and other factors, a ¥1,135 million decrease in "Property, plant and equipment," and a ¥283 million decrease in "Intangible assets."

   (Liabilities)

   Total liabilities as of June 30, 2025 were ¥107,161 million, down ¥2,186 million from the end of the previous consolidated fiscal year. This was attributable to various factors such as a ¥2,468 million decrease in "Provision for bonuses" and a ¥1,225 million decrease in "Income taxes payable," which outweighed a ¥785 million increase in "Other current liabilities" and a ¥731 million increase in "Notes and accounts payable - trade."

   (Net assets)

   Net assets as of June 30, 2025 were ¥253,143 million, down ¥9,018 million from the end of the previous consolidated fiscal year, and the equity ratio was 69.6%. This was attributable to numerous factors, including an increase (decrease in net assets) of ¥4,003 million in "Treasury shares" due to share purchases, a ¥3,747 million decrease in "Foreign currency translation adjustment" due to exchange rate fluctuations, and a ¥587 million decrease in "Valuation difference on available-for-sale securities."

3. Outlook

With respect to the consolidated financial results forecasts for the (cumulative) second quarter and full year of the fiscal year ending March 31, 2026, there are no changes at this time from the forecasts announced on May 14, 2025.