9914.T

• Company Overview & Core Positioning
  • Founded in 1950 in Sendai, Miyagi Prefecture, celebrating 75 years of operation in 2025; it is a specialized machinery and tools trading company serving manufacturing customers across the Tohoku and Kanto regions
  • Operates across five core product lines focused on factory automation (FA): working machinery, machinery tools, industrial machinery, transmission equipment, and environmental solutions; positions itself as a partner that supports customers' manufacturing from initial design through ongoing optimization
• Interim Period Overall Financial Results (March 21, 2025 - September 20, 2025)
  • Total net sales: 3.287 billion yen, 4.9% increase year-over-year; the company saw revenue growth but lower profit year-over-year, in line with overall performance expectations
  • Selling, general and administrative expenses: 445 million yen, 2.6% increase year-over-year due to higher prices and rising personnel costs
  • Operating profit: 20 million yen (14.5% decrease YoY); ordinary profit: 68 million yen (4.6% decrease YoY); interim net profit: 45 million yen (8.4% decrease YoY)
  • Quaterly breakdown: Q1: 1.576 billion yen sales, 17 million yen operating loss; Q2: 1.711 billion yen sales, 37 million yen operating profit
  • Cash and cash equivalents at interim end: 701 million yen, 102 million yen increase from prior fiscal year end; operating cash flow generated 193 million yen (vs 419 million yen use in prior year); investing cash flow used 11 million yen; financing cash flow used 79 million yen
  • Balance sheet: Total assets 5.199 billion yen (202 million yen increase from prior FY end); total liabilities 2.062 billion yen (152 million yen increase); total equity 3.136 billion yen (50 million yen increase); equity ratio 60.3%, down 1.5pp from prior FY end
• Mid-Term Management Plan
  • This fiscal year (FY2026 March) is the final year of the 4-year "Post-COVID New Mid-Term Management Plan" (FY2023 March - FY2026 March)
  • Corporate vision: Become a healthy enterprise that pursues employee fulfillment, maintains high profitability, contributes to customers and society, and earns overwhelming customer support while growing alongside clients
  • Core strategic priorities: 1) Establish a revenue base via differentiation and maintaining a healthy balance sheet; 2) Improve corporate value via corporate governance and sustainable management; 3) Become a healthy enterprise that grows alongside customers
  • Final year (FY2026 March) quantitative targets: 6.8 billion yen sales, 78 million yen operating profit, 150 million yen ordinary profit, 103 million yen net profit
• Dividend and Shareholder Return
  • Dividend history: FY2023 March: 25 yen per share (payout ratio 143.7%); FY2024 March: 30 yen per share (60.9%); FY2025 March: 32.5 yen per share (including 2.5 yen commemorative dividend, 84.5% payout ratio)
  • FY2026 March planned full-year dividend: 32.5 yen per share, 70.7% planned payout ratio; dividend decisions are made by the board of directors for flexible shareholder returns
  • Shareholder benefit program: Offers 500-3000 yen worth of original QUO cards annually to shareholders holding 100+ shares, based on holding size
• Sustainability Initiatives
  • Announced SDGs commitment in April 2023, established an internal SDGs committee led by young staff in 2022
  • Basic policy: "Contribute to local communities and manufacturing, become a 100-year enterprise, and continue to propose solutions for the future"; has six priority focus areas: propose future-focused solutions to customers, build a future-aligned work environment, contribute to SDGs diffusion via environmental activities, build an inclusive workplace that leverages individual strengths, expand local production and consumption via network partnerships, strengthen corporate foundational capabilities

• Full-year performance through the interim period is slightly below plan, but management has elected to maintain the previously announced full-year earnings guidance at this time
• Management will continue to carefully monitor market trends and external environment changes, and will promptly announce any necessary revisions to guidance if conditions change
• The mid-term management plan's final year full-year targets remain unchanged at 6.8 billion yen total sales, 78 million yen operating profit, 150 million yen ordinary profit, and 103 million yen net profit

Uematsu Shokai operates as a single reporting segment for sales of machinery, tools, and industrial machinery/equipment, with performance broken out by product category:

• Machinery: 180 million yen (5.5% of total interim revenue), 9.1% decrease year-over-year, dragged by cautious customer capital investment posture
• Tools: 749 million yen (22.8% of total interim revenue), 5.4% increase year-over-year, driven by growth in cutting tool sales
• Industrial Machinery: 1.723 billion yen (52.4% of total interim revenue), 10.7% increase year-over-year, driven by higher sales of logistics conveying equipment and hydraulic/pneumatic equipment
• Transmission Equipment: 327 million yen (9.9% of total interim revenue), 12.1% decrease year-over-year, driven by lower sales of bearings and bearing-related equipment
• Other Products: 306 million yen (9.3% of total interim revenue), 3.9% increase year-over-year

• Domestic macroeconomic risks: Persistent labor shortages and high prices continue to weigh on overall economic growth
• Global macro and geopolitical risks: Uncertainty over U.S. tariff policy trends and prolonged unstable global geopolitical conditions create an unclear outlook
• Industry-specific risks: While recovery in domestic automotive-related production is a positive factor, widespread caution over Trump-era tariffs across manufacturing has led to sustained inventory adjustments and cautious capital investment posture, keeping industry activity subdued
• Global economic risks: Global monetary tightening and slowing Chinese economic growth add further uncertainty to the operating outlook

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