Consolidated Financial Statements for the twelve-month period ended March 31, 2025

Consolidated Financial Results for the Year Ended March 31, 2025

[Japanese GAAP]

May 14, 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 of annual general meeting of shareholders: June 27, 2025 Scheduled date to commence dividend payments: June 30, 2025 Scheduled date to file annual securities report: June 26, 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 279,193 266,812	% 4.6 6.1	Millions of yen 22,854 21,262	% 7.5 12.0	Millions of yen 25,332 23,450	% 8.0 11.9	Millions of yen 22,122 18,551	% 19.2 35.0

      (Note) Comprehensive income:	Fiscal year ended March 31, 2025:	¥	18,562 million	[	(57.2) %]
      	Fiscal year ended March 31, 2024:	¥	43,412 million	[	100.6%]

      	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	212.65	-	8.5	6.6	8.2
      March 31, 2024	170.55	-	7.7	6.4	8.0

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

      Fiscal year ended March 31, 2024: ¥ 17 million (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	Net assets per share
   As of March 31, 2025 March 31, 2024	Millions of yen 371,510 391,298	Millions of yen 262,162 260,559	% 69.9 66.0	Yen 2,533.14 2,402.41

   (Reference) Equity: As of March 31, 2025: ¥ 259,810 million

   As of March 31, 2024: ¥ 258,400 million

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

   	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 21,297 38,580	Millions of yen (11,834) (9,161)	Millions of yen (21,655) (15,695)	Millions of yen 63,316 74,655

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 60.00 99.00	Yen - -	Yen 100.00 47.00	Yen 160.00 -	Millions of yen 5,759 8,220	% 31.3 37.6	% 2.4 3.2
   Fiscal year ending March 31, 2026 (Forecast)	-	40.00	-	40.00	80.00		39.2

   (Note) Year-end dividend per share for the fiscal year ended March 31, 2025

   Effective October 1, 2024, the Company split its common shares at a ratio of 1 to 3. The year-end dividend per share for the fiscal year ended March 31, 2025 reflects the amount after the stock split. Accordingly, the total annual dividend per share is shown as "-." If the stock split is not taken into account, the year-end dividend per share for the fiscal year ended March 31, 2025 is 141 yen, and the annual dividend per share is 240 yen. For details, please refer to "Proper use of earnings forecasts, and other special matters."

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.)

* Notes:

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

2. 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

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): March 31, 2025: 106,213,279 shares

      March 31, 2024: 111,244,179 shares

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

      March 31, 2025: 3,648,863 shares

      March 31, 2024: 3,685,347 shares

   3. Average number of shares outstanding during the period:

Fiscal Year ended March 31, 2025: 104,031,860 shares

Fiscal Year ended March 31, 2024: 108,774,846 shares

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

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

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 102,893 100,636	% 2.2 (1.5)	Millions of yen 885 2,306	% (61.6) (51.4)	Millions of yen 13,820 10,614	% 30.2 (21.1)	Millions of yen 16,449 10,191	% 61.4 (13.9)

   	Basic earnings per share	Diluted earnings per share
   Fiscal year ended	Yen	Yen
   March 31, 2025	158.12	-
   March 31, 2024	93.69	-

   (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 fiscal year.

2. Non-consolidated Financial Position

(Reference) Equity: As of March 31, 2025: ¥ 145,607 million

As of March 31, 2024: ¥ 152,228 million

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

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

• Proper use of earnings forecasts, and other special matters

• Table of Contents - Attachments

  1. Summary of Business Results, Etc. P. 2

     1. Summary of Business Results in the Fiscal Year under Review ................................................................... P. 2

     2. Summary of Financial Position in the Fiscal Year under Review ................................................................. P. 3

     3. Summary of Cash Flow in the Fiscal Year under Review............................................................................. P. 3

     4. Outlook for the Current Fiscal Year .............................................................................................................. P. 4

     5. Profit Distribution Policy and Dividends for the Fiscal Year under Review and the Current Fiscal Year .... P. 4

  2. Basic Approach to the Selection of Accounting Standards ................................................................................ P. 5

  3. Consolidated Financial Statements .................................................................................................................... P. 6

     1. Consolidated Balance Sheets ........................................................................................................................ P. 6

     2. Consolidated Statements of Income and Comprehensive Income ................................................................ P. 8

     3. Consolidated Statements of Changes in Equity .......................................................................................... P. 10

     4. Consolidated Statements of Cash Flows ..................................................................................................... P. 14

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1. Summary of Business Results, Etc.

(1) Summary of Business Results in the Fiscal Year under Review

In the consolidated fiscal year under review (from April 1, 2024 to March 31, 2025), while the Chinese economy remained sluggish due to a prolonged real estate downturn and weak domestic demand, the global economy remained resilient, supported by continued strong growth in the U.S. driven by favorable employment and income conditions, and a moderate economic recovery in Europe amid easing inflationary pressures. The Japanese economy also followed a moderate recovery trend, supported by an expansion in capital investment and a rebound in personal consumption driven by a recovery in real wages.

Amid this environment, although affected by the downturn in the Chinese economy, the Tsubaki Group's business performance remained robust, driven by the continued strength of the Chain Business, and the launch of mass production for newly acquired projects in the Mobility Business. Combined with the impact of the weaker yen, orders received in the consolidated fiscal year under review increased 4.0% year on year to ¥273,523 million, and net sales increased 4.6% year on year to ¥279,193 million.

Operating profit increased 7.5% year on year to ¥22,854 million, and ordinary profit increased 8.0% year on year to

¥25,332 million, while profit attributable to owners of parent increased 19.2% year on year to ¥22,122 million. Building toward "What we want to be in 2030" that we set forth in the Long-Term Vision 2030, the Tsubaki 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. In addition, 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.

Segment results are summarized as follows:

[Chains]

In the Chains segment, net sales increased year on year due to such factors as a rise in sales in Japan and China, and the effect of the weak yen.

The segment recorded a year-on-year increase of 5.4% in orders received to ¥92,779 million, while net sales increased

2.2% year on year to ¥94,254 million. However, operating profit decreased 4.9% year on year to ¥15,585 million due to various factors including a rise in labor costs in Japan, as well as a decline in North American sales.

[Motion Control]

In the Motion Control segment, net sales were up year on year, helped by factors such as increased sales in Japan, the Americas, South Korea, and Taiwan.

Consequently, the segment recorded a year-on-year increase of 5.3% in orders received to ¥22,391 million, a 4.2% year-on-year increase in net sales to ¥22,944 million, and a year-on-year increase of 16.6% in operating profit to ¥770 million.

[Mobility]

In the Mobility segment, net sales increased year on year, driven by increased sales of timing chain systems for automobile engines and other items at sales sites in Japan, the Americas, Europe, South Korea and other locations. The segment recorded a year-on-year increase of 7.4% in orders received to ¥90,850 million, a year-on-year increase

of 7.8% in net sales to ¥91,179 million, and a year-on-year increase of 6.0% in operating profit to ¥8,287 million.

[Materials Handling Systems]

In the Materials Handling Systems segment, there was a year-on-year increase in net sales due to an increase in sales of metalworking chips handling, coolant processing systems, and systems for the automotive industry in the Americas, and an increase in sales of systems for the logistics industry and automobile industry in Japan, along with other factors.

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