2025 December Period Financial Presentation Materials

Overview of Business Performance

For the fiscal year ending December 2025, consolidated results remained solid centered on the core Machine Tool Business. Net sales reached 80.5 billion yen (YoY +9.4%), and operating income increased to 4.2 billion yen (YoY +1.9 billion yen). The Machine Tool Business achieved revenue and profit growth with sales of 58.3 billion yen (YoY +13.6%) and segment income of 5.4 billion yen (YoY +2.0 billion yen) driven by higher unit sales. The Industrial Machinery Business posted a slight increase in sales to 9.7 billion yen (YoY +1.8%), but segment income declined to 0.5 billion yen (YoY -0.3 billion yen) due to higher selling, general and administrative expenses. The Food Machinery Business saw a revenue decline to 6.9 billion yen (YoY -9.7%) due to changes in the competitive environment for rice cooking equipment, but maintained profit at 0.9 billion yen, on par with the previous year. Other businesses turned profitable with net sales of 5.5 billion yen (YoY +9.9%) and segment income of 0.4 billion yen (YoY +0.7 billion yen).

Financial Position and Cash Flows

On the balance sheet, total assets were 155.695 billion yen (increase of 10.702 billion yen compared to the end of the previous fiscal year), and net assets totaled 6.164 billion yen, maintaining a stable financial base with an equity ratio of 58.1%. Cash flows recorded operating cash flow of 7.147 billion yen, investing cash flow of -3.955 billion yen, and financing cash flow of -2.484 billion yen, resulting in an increased cash and cash equivalents balance of 44.983 billion yen. These figures reflect factors including fixed asset acquisitions related to the M&A of Prima Additive (formerly AltForm) and the sale of policy-held shares.