FY2025 Q3 Financial Results Briefing

YAMAZEN CORPORATION

March 10, 2026

Securities Code: 8051 (Prime)

• Business Overview and Medium-Term Management Plan "PROACTIVE YAMAZEN 2027"

• Overview of FY2025 Q3 Financial Results

• Initiatives Aimed at Global Business Growth

• Strategic Partnership and Financing for the Enhancement of Corporate Value

• Capital Policy and Shareholder Returns

• Appendix

  Supplementary Materials for Full-Year Earnings Forecasts Supplementary Materials for Business Model, etc.

  Please click here for the supplementary materials regarding the Q3 financial results.

  • As the figures in this document are rounded down to the nearest million yen, the breakdowns may not match the totals. The percentage changes are rounded off to the first decimal place.

  • Unless otherwise specified, 'Full-Year Earnings Forecast' refers to the figures announced on October 15, 2025.

  • The plans, future prospects, strategies and other information in this document that do not relate to past or present facts are forecasts of future performance and are based on the judgments and assumptions derived from information currently available to the Company's management. Therefore, actual results may differ significantly due to uncertainties, economic conditions, and other risk factors. Furthermore, this document is not intended to solicit investment. Please make investment decisions at your own discretion.

• Business Overview and Medium-Term Management Plan "PROACTIVE YAMAZEN 2027"

• Overview of FY2025 Q3 Financial Results

• Initiatives Aimed at Global Business Growth

• Strategic Partnership and Financing for the Enhancement of Corporate Value

• Capital Policy and Shareholder Returns

• Appendix

Management of Fostering Personnel

To make active use of personnel, and to foster independent and virtuous employees

Management of Breaking Through

To challenge, innovate and create

Management of Trust

To respond to the needs and expectations of

Founder Takeo Yamamoto

Founded Yamazen Tool Manufacturing & Sales Co., Ltd. in May 1947. Expanded the company's business domain from machinery tools to machine tools, housing equipment, and home products. The company's rapid growth through unique management attracted attention and became the model for the novel Doterai Yatsu. He died in 1991 (aged 70).

society and contribute to them

Yamazen has continually been a contributor to society, satisfying numerous user expectations in the two domains of Production Equipment that support manufacturing, and Consumer Goods that enrich everyday living. Moving forward, we will create new value by exceeding and integrating these two boundaries to lead worldwide manufacturing and enriched lives.

A

• Founded as a wholesaler of industrial tools (production equipment), we have expanded

  our business to include the machine tools, industrial machinery, and housing-related domains

  B

• Our continuous transactions with many distributors have allowed us to

  establish a stable revenue base through business models likened to recurring revenue

  C

• We have expanded our business domains and scale by adding on such functions as engineering and fabless manufacturer in line with the items handled by each business division

• We have stabilized our business by linking our add-on business to stable and continuous transactions

  Business operation of YAMAZEN (schematic diagram)

  Relationship Between Business Models and Business Organizations

  A

  Engineering

  
  
  

  Home Products Business

  Building Materials Business

  Global Business

  Tool & Engineering*Business

  Industrial Solution Business

  Machine Tools Business

  Production Equipment Consumer Goods

  Fabless manufacturer

  (Private brand products)

  Engineering

  C

  Wholesale

  (Home Products [other than PB])

  Wholesale

  (Housing equipment)

  B

  Wholesale (Machine tools, equipment,

  industrial tools-related)

  
  
  

  Fabless maker

  Wholesale

  Wholesale

  Wholesale

  Inauguration of business Present

  Copyright © 2025 YAMAZEN CORPORATION

  *Some of the following is abbreviated as "T&E" 5

  *In the following pages, the word "Business" may be omitted.

  
  
  

  Consumer Goods

  179,506 million yen (34.8%)

  Production Equipment

  333,205 million yen (64.6%)

  Home Products Business

  100,883 million yen (19.6%)

  Machine Tools Business

  72,217 million yen (14.0%)

  Building Materials Business

  78,623 million yen (15.2%)

  FY2024

  Consolidated Net Sales

  516,126

  (Million yen)

  Industrial Solution Business

  95,049 million yen (18.4%)

  Others

  3,414 million yen (0.7%)

  Tool & Engineering Business

  80,204 million yen (15.5%)

  Overseas Production Equipment Business

  85,733 million yen (16.6%)

  
  
  

  Breakdown

• The previous medium-term management plan (FY2022-FY2024) was positioned as a "Functional Expansion Period." Building on this foundation, the company has launched a new three-year medium-term management plan, "PROACTIVE YAMAZEN 2027," starting this fiscal year, which is positioned as a "Value Enhancement Period."

Functional Expansion Period

PURPOSE

Pioneering a new future, with all of you

Company-Wide Strategy to Realize VISION

Investment in Growth Drivers

VISION

Making Wholesale Business More

Resilient

Leading worldwide

manufacturing and enriched lives

Five Strategic Points

Medium-Term Management Plan

1. Value enhancement

2. Accelerating global expansion

3. Upgrading sales activities

4. Enhancing management infrastructure

5. Strengthening sustainability management

-FY2024

Value Enhancement Period

-FY2027

-FY2030

The Overall Framework of Strategies and Initiatives to Realize the 2030 Corporate Vision

• Sales/Profits

  	FY2024 Results
  Net sales	516,126
  Operating profit	9,535
  Ordinary profit	10,018
  Profit attributable to owners of parent	7,845

• Management Indicators

  (Million yen)

  FY2025 Forecasts Vs. FY2024 Results		FY2027 Forecasts Vs. FY2024 Results
  530,000	+2.7%	600,000	+16.3%
  10,000	+4.9%	16,000	+67.8%
  10,000	-0.2%	16,000	+59.7%
  7,150	-8.9%	11,000	+40.2%

  (Million yen)

  	FY2024 Results
  Return on Equity (ROE)	6.1%
  Basic operating cash flow	8,341
  Shareholders' equity ratio	43.3%

  FY2025 Forecasts Vs. FY2024 Results		FY2027 Forecasts Vs. FY2024 Results
  5.5%	-0.6pt	8.0%	+1.9pt
  11,000	+31.9%	14,000	+67.8%
  40~45%	-	40~45%	-

  *Basic operating cash flow is calculated by deducting changes in working capital from operating cash flow.

  Net sales

  (Million yen)

  Segment profit (based on disclosed segments, bottom row is operating profit margin)

  FY2024

  Results

  FY2025 Full-year Forecasts

  Vs. FY2024

  Production Equipment

  Results

  FY2027 Full-year Forecasts

  Vs. FY2024

  Results

  FY2024

  Results

  FY2025 Full-year Forecasts

  Vs. FY2024

  Results

  FY2027 Full-year Forecasts

  Vs. FY2024

  Results

  Consumer Goods

  Other

  Machine

  Tools IS

  T&E Domestic total

  Global

  Total

  Building Materials

  Home Products

  Total

  72,217

  95,049

  80,204

  247,471

  85,733

  333,205

  78,623

  100,883

  179,506

  3,414

  70,000

  99,000

  81,000

  250,000

  90,000

  340,000

  84,000

  102,000

  186,000

  4,000

  -3.1%

  +4.2%

  +1.0%

  +1.0%

  +5.0%

  +2.0%

  +6.8%

  +1.1%

  +3.6%

  +17.1%

  80,000

  110,000

  90,000

  280,000

  120,000

  400,000

  85,000

  115,000

  200,000

  0

  +10.8%

  +15.7%

  +12.2%

  +13.1%

  +40.0%

  +20.0%

  +8.1%

  +14.0%

  +11.4%

  -

  8,291

  2.5%

  3,192

  4.1%

  4,449

  4.4%

  7,641

  4.3%

  -6,396

  -

  8,500

  2.5%

  3,400

  4.0%

  4,500

  4.4%

  7,900

  4.2%

  -6,400

  -

  +2.5%

  +0.0pt

  +6.5%

  -0.0pt

  +1.1%

  +0.0pt

  +3.4%

  -0.0pt

  -

  -

  13,500

  3.4%

  3,500

  4.1%

  5,800

  5.0%

  9,300

  4.7%

  -6,800

  -

  +62.8%

  +0.9pt

  +9.6%

  +0.1pt

  +30.4%

  +0.6pt

  +21.7%

  +0.4pt

  -

  -

  Consolidated

  516,126

  530,000

  +2.7%

  600,000

  +16.3%

  9,535

  1.8%

  10,000

  1.9%

  +4.9%

  +0.0pt

  16,000

  2.7%

  +67.8%

  +0.8pt

  *IS = Industrial Solution, T&E = Tool & Engineering

  
  
  
  
  

  • Business Overview and Medium-Term Management Plan "PROACTIVE YAMAZEN 2027"

  • Overview of FY2025 Q3 Financial Results

  • Initiatives Aimed at Global Business Growth

  • Strategic Partnership and Financing for the Enhancement of Corporate Value

  • Capital Policy and Shareholder Returns

  • Appendix

    
    
    
    
    

    Summary of Q3 Financial Results

    • Outline of Initiatives

      • Domestic: While the automotive industry's appetite for capital investment is generally sluggish, accurately ascertain the needs for automation and labor-saving, and proactively develop the non-residential sector

      • Global: Capture the demand for capital investment from domestic demand-oriented companies in China

        and capitalize on the trend of relocating production to ASEAN

    • Financial Highlights

      Net sales: 398.4 billion yen (+4.1% YoY), Operating profit: 8.4 billion yen (+40.2% YoY)

      • Sales of production equipment and consumer goods were both strong

      • By business segment, sales increased in all businesses except the Machine Tools Business

      • Gross profit increased on the back of strong sales, while SG&A expense growth was contained.

      • Strong progress has been made against the full-year forecasts, at 75.2% for net sales and 84.8% for

operating profit

Net sales: 398,455 million yen, +4.1% YoY

• Demand for capital investment overseas increased.

• Demand for renewal of air conditioning and other housing

  equipment remains strong.

  Operating profit: 8,479 million yen, +40.2% YoY

• Personnel expenses increased, while advertising

  expenses, mainly related to home products, also rose.

• SG&A expenses ratio slightly decreased (-0.1pt) due to a review of expenses.

  Gross profit: 60,924 million yen, +7.1% YoY

• Gross profit increased due to increased sales.

  Profit: 6,639 million yen, +16.6% YoY

  attributable to owners of parent

• Gains on the sale of policy shareholdings decreased from the previous year, resulting in a reactionary decrease in extraordinary gain.

(Million yen)

• Gross profit increased on the back of strong sales.

• While personnel expenses, commission expenses, and advertising and promotion expenses-primarily related to home products- increased, we thoroughly reviewed and rationalized various operating expenses.

  Increase in

  (Million yen)

  1,589

  Operating profit

  4,018

  Operating profit

  Provision of allowance

  for doubtful accounts +128

  6,050

Increase in gross profit SG&A expenses

FY2024

Q3

Up 2,429 YoY

FY2025

Q3

• • The Group's performance is influenced mainly by capital investment in the Production Equipment segment and by personal

    consumption in the Consumer Goods segment.

    External Environment in FY2025 Q3

    External Environment			Business Segments Mainly Affected	Impact
    Domestic	Capital investment appetite among small and midsize manufacturers-our end-users-remained weak		Machine Tools Tool & Engineering
    	High needs for automation and labor-saving solutions due to labor shortages		Industrial Solution
    	Continued willingness to invest in energy-saving equipment amid high energy prices		Industrial Solution
    	Replacement demand for housing equipment remained firm despite a downtrend in new housing starts		Building materials
    	Rising prices outpace wage increases, leading to continued frugality and selective purchasing trends for durable consumer goods.		Home Products
    Global	North America	Capital investment was restrained due to tariff burdens and high interest rates	Global
    	Taiwan	Capital investment among component machining users remained sluggish	Global
    	China	Equipment investment for EV and semiconductor industries was supported by various government policies	Global
    	ASEAN	Active equipment investment demand due to production transfers and relocation of manufacturing bases from other regions	Global

    
    
    

• In the Production Equipment segment, the Industrial Solution Business, which is responding to the needs for automation, labor saving, and improving working environments, and the Overseas Business, which is capturing equipment demand in China and ASEAN, are performing well.

• In the Consumer Goods segment, sales growth was driven by the Building Materials Business, where demand for energy-saving renovations led to strong sales of air conditioning equipment.

  (Million yen)

  			FY2024 Q3	FY2025 Q3	YoY	Full-year Forecasts	Achievement Rate
  Production Equipment		Machine Tools Business	51,870	50,674	-2.3%	70,000	72.4%
  		Industrial Solution Business	69,798	72,917	+4.5%	99,000	73.7%
  		Tool & Engineering Business	59,214	59,680	+0.8%	81,000	73.7%
  		Global Business	61,437	67,961	+10.6%	90,000	75.5%
  	Total		242,320	251,234	+3.7%	340,000	73.9%
  Consumer Goods		Building Materials Business	58,160	64,151	+10.3%	84,000	76.4%
  		Home Products Business	79,097	79,967	+1.1%	102,000	78.4%
  	Total		137,257	144,119	+5.0%	186,000	77.5%
  Other			3,000	3,101	+3.4%	4,000	77.5%
  Total			382,579	398,455	+4.1%	530,000	75.2%

  • In the Machine Tools Business, sales of machine tools to major auto parts processing manufacturers were slightly lower than the previous year.

  • In the Industrial Solution Business, sales of equipment and machinery for responding to automation, labor-saving and improving the working environment remained strong.

  • In the Tool & Engineering Business, although sales of consumables such as cutting tools were sluggish, sales of work supplies and small equipment were strong. (Million yen)

Enhancing Advanced Engineering as a Group of Technical Specialists

Improving both sales efficiency and customer satisfaction

Participation in the Physical Data Generation Center project, enabling up to 50 humanoid robots to operate concurrently.

Sales increased on "teraido," our comprehensive platform site for distributors

We signed a business partnership agreement with INSOL-HIGH Inc., which has developed an industrial platform specializing in the domain of humanoid robots.

We are participating in the consortium led by INSOL-HIGH to accelerate the social implementation of humanoid robots through the construction of a "Physical Data Generation Center".

Work movement data is collected and arranged and learning data is accumulated, which is

A lineup of over 2 million products from approximately 700 manufacturers, covering a wide range of consumables and ancillary equipment required at production sites.

Providing information on

• Sales on teraido

  Q3 YTD

34% increase

shared amongst participating companies with the aim of supporting automation in manufacturing and logistics.

Copyright © 2025 YAMAZEN CORPORATION

▲ Image of the Physical Data Generation Center

new products and subsidies, while supporting the operational efficiency of distributors.

FY2023 FY2024 FY2025

16

We plan to establish in Germany a subsidiary of Plustech Inc., which was established in the United States in 2004 as a joint venture between our company and Sodick Plustech Co., Ltd. (now Sodick Co., Ltd.), and which will be a consolidated subsidiary of the Company.

Embracing the geographical shift in manufacturing bases as a business opportunity

Our overwhelming strength has been in our ability to cover multiple regions through our global network of bases in various countries and distributor rights with manufacturers in those countries.

Steadily brought cross-border projects to fruition and responded to the shift of manufacturing bases.

Country A

Japanese-affiliated user

Japanese-affiliated user

Local user

Local user

51% 49%

100%

Copyright © 2025 YAMAZEN CORPORATION 17

non-residential sector such as office buildings, which improved the profit margin

(Million yen)

Growth in sales for residential and non-residential, new and existing

Expansion of the Renovation Business

Steadily increasing sales by focusing on the renovation business for both residential and non-residential

Established a specialized business promotion team for the mass retailer renovation business

Demand for new housing is on a long-term downward trend.

Residential

Starting in April, it has become mandatory to meet energy-saving standards for all new housing construction. Strengthened proposals for high-value-added products.

Strengthened efforts for renovation projects, including the construction of public facilities, office buildings, factories, schools, and hospitals.

• Image of sales for each quadrant

  (previous years' results)

  ■ 2023 ■ 2024

  New construction

  Established a system that enables us to provide comprehensive support for "package renovations" at mass retailers of home appliances, home improvement centers, etc., ranging from planning to sales and construction.

  
  
  

  Non-residential

  Promoted sales through training and the sharing of sales know-how to mass retailers of home appliances.

  Copyright © 2025 YAMAZEN CORPORATION

  Existing construction (renovation)

  ▲Seminar for mass retailer sales staff

  18

  • Sales grew through expanding the product lineup and improving information dissemination of the YAMAZEN brand (private brand) through social and other media.

  • Sales of workwear with built-in cooling fans and spot coolers were solid in the first half due to the extreme heat last

    summer, as were sales of humidifiers in Q3.

  • Net sales and membership also grew steadily on Yamazen Bizcom, our own e-commerce site for corporations and sole proprietors, which is aimed at expanding our sales channels.

    (Million yen)

    		FY2024 Q3	FY2025 Q3	YoY	Full-year Forecasts	Achievement Rate
    	Net sales	79,097	79,967	+1.1%	102,000	78.4%
    	Segment profit	3,846	4,321	+12.4%	4,500	96.0%
    	Segment profit margin	4.9%	5.4%	+0.5pt	4.4%	-

    Growth in sales of private brand products

    Strengthened Yamazen Bizcom Membership

    YAMAZEN brand drives sales and profit despite declining purchase appetite for durable consumer goods

    
    
    

    Efforts were made to quickly plan and develop private brand products that captured consumer needs and strengthened our lineup, and the YAMAZEN brand was popularized by disseminating information via social media and various other media.

    Sales and membership increased at Yamazen Bizcom, our own e-commerce site

    Focused on expanding trade with sole proprietors, and sales and membership steadily grew as a result.

    Approx. 190K

    • Yamazen Bizcom Membership Trends

Humidifier lineup was enhanced as a winter product

▲ Simple cubic design that does not look like a humidifier at first glance

March 31,

2023

March 31,

2024

March 31,

2025

March 31,

2026

• Business Overview and Medium-Term Management Plan "PROACTIVE YAMAZEN 2027"

• Overview of FY2025 Q3 Financial Results

• Initiatives Aimed at Global Business Growth

• Strategic Partnership and Financing for the Enhancement of Corporate Value

• Capital Policy and Shareholder Returns

• Appendix

• Acquisition of all shares in AtoG1, the parent company of CK Mac Global Sdn. Bhd. in Malaysia.

• CK Mac Global: a leading local machine tool distributor in Malaysia, with four locations delivering machine tool sales and engineering services to sectors including semiconductors, automotive, aerospace, medical devices, and oil & gas.

  Scheme CK Mac Global Company Profile

  100%

  Operations

  100%

  100%

  Location Selangor, Malaysia

  AtoG Capital

Acquisition of all shares

100%

Business Description Sales of machine tools and other related services Capital 20 million Malaysian Ringgit (720 million yen)

Established August 2024 (founded in 1982) Number of Employees Approx. 60

FY2024/8 results (pro forma)

Sales Approx. 2.8 billion yen Pre-tax income Approx. 0.3 billion yen

Conversion rate: 1 MYR RM = 36 JPY

Penang

YAMAZEN（3 locations） CK Mac （4 locations）

Kuala Lumpur Malacca

Johor Bahru

1

Client base with ongoing trading

2

Machine tool sales capabilities, including engineering services

3

Wide range of customer sectors

4

Local personnel that understand local customs and needs

By leveraging management resources with our Malaysia-based subsidiary, Yamazen will strengthen its presence as a machine tool trading company in Malaysia.

Raise our ability to develop new markets and new customers by expanding our sales network and customer sectors

Strengthen our relationships with manufacturers by increasing our "selling power"

Expand business opportunities through up-selling/cross-selling

• Basic agreement to acquire shares of PT. Somagede Indonesia (SGI), a local cutting tools and adhesive distributor in Indonesia

• SGI sells cutting tools mainly from Japanese manufacturers and adhesives and maintenance products from global

manufacturers. It covers Indonesia's vast economic market through its ten offices and the use of eight distributors.

SGI Company Profile

Location Jakarta, Indonesia

Business Description Wholesale and direct sales of cutting tools,

machinery tools, adhesives, and maintenance products

SGI (10 locations,

including inventory centers in Jakarta and Cikarang) SGI Authorized Distributors (8 locations)

Capital 78,000 million Indonesian rupiah (Approx. 725 million yen)

Established February 2006 (founded 1989)

Number of Employees Approx. 180

Pekanbaru Batam

Padang

Samarinda

Palu

Manado

Halmahera

FY2024/12 results

Sales 3,367 million yen Operating profit 183 million yen

Conversion rate: 1 IDR Rp= 0.0093 JPY

Jakarta

Tangerang

Palembang

Cikarang

Bandung

Balikpapan

Semarang

Makassar

Surabaya

Sumbawa

Timika

1

Extensive sales network, including remote islands

2

Client base with ongoing trading

3

Long-standing, stable local entity with a proven track record

4

Inventory center and product shipping infrastructure

Efficiently strengthening and expanding the business foundation in Indonesia by complementing the management resources of existing local subsidiaries

Rapidly expanding the sales network and distribution infrastructure in Indonesia, where east-west distances are greater than in the United States or China

Reducing earnings volatility by offering products with different demand cycles

Creating competitive advantages through higher value-added offerings by combining product portfolios

• Business Overview and Medium-Term Management Plan "PROACTIVE YAMAZEN 2027"

• Overview of FY2025 Q3 Financial Results

• Initiatives Aimed at Global Business Growth

• Strategic Partnership and Financing for the Enhancement of Corporate Value

• Capital Policy and Shareholder Returns

• Appendix

  As part of our initiatives to further enhance corporate value, we have entered into a strategic partnership with Advantage Partners ("AP") and have arranged secure financing.

  
  
  

  About AP's private solutions to support the growth of listed companies

  • The team responsible for private investments to support the growth of listed companies* within the Advantage Partners Group, a pioneer in domestic private equity funds (PE funds).

  • They have a proven track record of supporting the discontinuous growth of corporate value for many listed companies.

*The team that invests in listed companies through shares, convertible bonds, share acquisition rights etc. and strives towards improvement of corporate value together with management.

By further expanding functions during the current medium-term plan,

we will improve our growth potential early on.

Growth Image

Medium-Term Management Plan (3-Year) Final Year

Operating Profit (Billion yen)

Illustrative Impact of the Partnership Growth on a Standalone Basis

Achieved

Unachieved

Unachieved

22.0

21.0

17.1

18.0

14.7

9.5

Results

Forecast

Results

Forecast

Forecast Results

計画 実 績

19/3期

FY2018

ONEXT YAMAZEN 2018

FY2021

計画 実 績

22/3期

CROSSING YAMAZEN 2021

FY2024

計画 実 績

25/3期

CROSSING YAMAZEN 2024

FY2025

26/3期

予想

Forecast

While on a gradual upward trend in sales, it is not accompanied by profit growth,

repeated shortfalls against plan.

Trends in results (sales, operating profit) from past Medium-Term Management Plans

Net sales

Operating profit Operating profit margin

Results Forecast

CAGR (3-year)

*Growth rate during each 3-year

Medium-Term Management Plan period

(Billion yen)

6,000

600

5,000

500

4,000

400

447.8

3.0%

5.5%

3.7%

498.0

526.4

3.4%

500.0

-1.6%

472.2

5.0%

501.9

3.4%

434.7

610.0

527.3

0.9%

6.1%

506.9

516.1

1.8%

600.0

300

30

250

20

25

200

20

150

3,000

300 15

2,000

100

200 10

50

1,000

100 5

Results Forecast

FY2022 FY2023 FY2024

CROSSING YAMAZEN 2024

CROSSING YAMAZEN 2021

Results Forecast

FY2021

FY2019 FY2020

Results Forecast

FY2018

0 0

FY2016 FY2017

FY2015

ONEXT YAMAZEN 2018

Sharpen our five strategic priorities to transform potential into measurable outcomes.

Medium-Term Management Plan (announced in May 2025)

Company-Wide Strategy to Realize Vision

Business portfolio and capital allocation

Engineering

Product development

Productivity improvement

売上 高

(Billion yen)

6,000

4,000

600

2,000

0

516.1

1.8%

CAGR 5.1%

Operating profit margin

6.0%

4.0%

2.0%

0.0%

営業利 益率

600.0

2.7%

Our five strategic priorities

1 2

FY2024 FY2027

forecast

3 4 5

Value Enhancement

Accelerating

Global Expansion

Upgrading

Sales Activities

Enhancing

Management Infrastructure

Strengthening

Sustainability Management

• Expanding engineering functioning

• Accelerating original product development

• Strengthening specialist

  capabilities

• Improving productivity through streamlining operations

• Promoting localization and efficiency of management

• Geographical expansion and reorganization of business areas

• Rapid response to market changes and diversification of business formats

• Maximizing customer value through face-to-face sales (real channels)

• Strengthening digital channels

• Order contracts and inventory management with CCC in mind

• Building a distribution system that can withstand the volumes looking to 2030

• Advancing information system infrastructure

• Optimizing the talent portfolio

• Developing new fields and industries

• Synchronizing social and

  economic values

• Expanding disclosure of nonfinancial information

• Setting appropriate KPIs and monitoring progress

  Improve capital efficiency and enhance corporate value

  through the implementation of five strategic priorities

  Our five strategic priorities

  1. Value

     enhancement

  2. Accelerating global expansion

  3. Upgrading sales activities

  4. Enhancing management infrastructure

  5. Strengthening sustainability management

  Capital Policy + Financial Strategy

  ● ●

  • Expansion of quality sales

    ●

    (customer portfolio improvement and order expansion)

    ●

  • Cost reductions (business efficiency improvement and lower costs)

    ●

  • Improvement of working capital turnover (improvement of CCC)

  • Optimizing tax burden rate

  • Review of capital allocation ●

  • Proper balance of investment scale, business risk, and capital efficiency ●

    ● ●

  • Progress and tangible results in strategies for talent, digital transformation (DX), green initiatives, and logistics

    PBR/Market capitalization/ share price

    Copyright © 2025 YAMAZEN CORPORATION

• Implementation of purpose- and vision-driven management and proactive governance toward achieving the plan

  Company-Wide Strategy

●

• Implementing Company-Wide Strategies for Realizing the Vision

  ●

• Stabilization of shareholder returns, diversification of shareholder composition, and improvement of market liquidity

  ● ●

• Progress and tangible results in strategies for talent, DX, green initiatives, and logistics

• Strengthening progress in engagement activities, expanding disclosure ●

31

Achieving Appropriate Market Valuation

Expanding the Value Creation Foundation with AP (Illustration)

Turn transformational concepts into execution

and deliver step-change growth on an accelerated timeline

１

Drive operational transformation

２

Accelerate expansion into new business domains

３ Embed best practices companywide

２

New Businesses

１

Current business domains

Resilience-enhancing Businesses

Wholesale (Production

Equipment, Consumer Goods)

Growing Businesses

Creation of high added value based on wholesale

Production Equipment: engineering functions

Consumer Goods:

fabless manufacturing functions

３

Management Foundation

Expansion of value creation foundation

Unlock the comprehensive strengths of our dual-pillar trading company

spanning production equipment and consumer goods

1

Resilience-enhancing

Businesses

Strengthening the wholesale sales

Growing Businesses

Reinforcing the Engineering Business

Creation of Growing Businesses

EC function reform

Business expansion through M&A

New Businesses

New business through

M&A

• As a first-tier wholesaler, we maintain strong manufacturer relationships and a domestic/international sales network; however, cross-divisional collaboration is constrained by our divisional structure.

• Internal adoption of digital technologies and the pace of e-commerce growth have lagged, leaving significant room to accelerate.

• Delayed go-to-market in growth domains.

• Unrivaled improvement of sales productivity through DX and deepening of proposal capabilities for face-to-face sales armed with digital technologies

• Acquisition of execution and follow-through to create new value linked with existing businesses

• Intermittent creation of synergy among business divisions

• Integration and streamlining of redundant backoffice functions

• Augmentation of marketing and digital talent

Achieve sustainable growth and value creation through

the establishment of organizational capabilities that enable continuous M&A

Growing Businesses

Reinforcing the Engineering Business

Creation of Growing Businesses

on reform

New Businesses

New business through

M&A

２

Business expansion through M&A

Management Foundation

M&A support, reinforcing recruitment, IR support

EC functi

Resilience-enhancing

Businesses

Strengthening the wholesale sales

• Despite the presence of specialized units, staffing remains severely inadequate, and the initiative pipeline is growing sluggishly.

• Short-termism in initiatives.

• Expansion of wholesale sales domain

• Acquisition of new businesses that include the expansion of existing business functions

• Establishment of organizational capabilities that enable continuous M&A

• Improvement of talent development and organizational

capabilities through M&A

Establish a highly repeatable management system

to institutionalize ever-advancing execution capabilities

Growing Businesses

Reinforcing the Engineering Business

Creation of Growing Businesses

on reform

Business expansion through M&A

3

Management Foundation

M&A support, reinforcing recruitment, IR support

New Businesses

New business through

M&A

EC functi

Resilience-enhancing

Businesses

Strengthening the wholesale sales

• Profit targets under the management plan remain unmet.

• Limited market recognition, reflecting a shortfall in market capitalization.

• Strengthening the framework to attract, develop, and retain talent, including digital talent.

• Sophistication of decision-making

• Establishment of administrative processes directly connected to the improvement of capital efficiency

• Talent and organizational development to institutionalize ever-advancing execution capabilities for sustainable growth

• Development of an environment where functional talent in M&A, digital technologies, DX, GX, IR, etc. will gather, thrive, and firmly establish themselves

Transform potential into measurable outcomes and materially accelerate growth

Pre-Partnership

Allocate all capital earned through the Wholesale Business into deepening the creation of value and high-growth business domains

Post-Partnership

Accelerate growth through the implementation of continuous M&A in Resilience-enhancing Businesses and Growing Businesses, as well as the acquisition of new business domains

Fabless manufacturer

(Private brand products)

Engineering

(Global and Domestic)

New Businesses

New business pillars through M&A

Resilience-enhancing Businesses

Wholesale

(Home Products [Non-PB])

Wholesale business that

efficiently generates cash based on strong relationships with business partners built over our longstanding history

Wholesale

(Housing equipment)

Wholesale

(Machine Tools, equipment, industrial tools)

Founded Present

Overview of Financing

(Issuance of Convertible Bonds with Share Subscription Rights)

• We aim to reduce cash-based financing costs by securing zero-coupon funds.

• The CBs include a contingent conversion provision and an issuer acquisition/cash-settlement provision (par-value cash settlement through automatic exercise), designed to manage convertibility and limit potential shareholder dilution.

Next Medium-Term Management Plan period and thereafter

Time of issuance 2026/3

1. year later 2027/3

2. years later 2028/3

3. years later 2029/3

4. years later 2030/3

5. years later 2031/3

Growth support

Strategic Partnership with AP

Financing

Payment completed on scheduled date of issuance

Number of CB units eligible for conversion

Non-convertible

Up to a cumulative 34.7%

Up to a cumulative 67.3%

Convertible at any time

Conceptual diagram of an automatic-exercise, par-value cash-settled CB

Dilution comparison by financing structure (share-count basis)

(Billion yen)

CB issuance

Share price increase (e.g. 2 times)

Cash settlement

Dilution percentage

The par value portion of the bond is settled in cash, with only the difference delivered in shares.

Without a par-value cash settlement provision: 19,03%

＊Before considering treasury shares

The par-value cash settlement provision enables substantial mitigation of dilution.

With a par-value cash settlement provision:

Dilution ratio gradually increases according to share price at time of conversion request

Share price rate of increase

The number of shares issued upon conversion is limited, resulting in financing with significantly reduced dilution.