Slides
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Consolidated Results for First Half of FY2025 SHIMA SEIKI MFG., LTD. November 2025
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Contents -2- Ⅰ．Summary of Operating Results for Second Quarter of FY2025 ・・・・３P Ⅱ．Forecast〔Consolidated〕 ・・・・16P Ⅲ．Supplementary material ・・・・18P ≪Topics≫
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Ⅰ. Summary of Operating Results for Second Quarter of FY 2025 -3-
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FY2025 2Q FY2024 2Q FY2024 Net Sales １８，０９２ １４，７７１ ３２，５２０ Operating Income （７９） （１，９３８） （１１，９１４） Ordinary Income ７８０ （２，０３５） （１１，４８１） Net income Attributable to owners of the parent ６７２ （２，１２４） （１４，２７５） Summary of Operating Results for Second Quarter of FY 2025 (million yen) -4- Exchange rate (JPY) FY2025 2Q FY2024 2Q USD/JPY １４８.８８ １４２.７３ Exchange rate at the end of the period (Upper level) １４６.０９ １５２.７５ Average exchange rate used for translation of sales (Lower level) EUR/JPY １７４.４７ １５９.４３ １６８.２１ １６６.０７
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Highlights Operational Review 【 Flat knitting machines 】 ・Asia In Bangladesh, orders received were on a recovery trend because of the end of the confusion caused by the large antigovernment demonstration in July 2024, and sales volume of N.SVR® and N.SSR® with high production efficiency increased from the previous period. In the Chinese market, prospects remained uncertain because of the delayed recovery, but demand for the replacement of facilities from major customers in Hong Kong remained solid, which led to an increase in net sales. ・European and Middle Eastern markets In the Italian market where customers are good at the development of high-value added products, there were signs of a recovery mainly in luxury brands and their suppliers, and the sales volume of both WHOLEGARMENT® flat knitting machines and molding machines increased. 【 Design systems 】 ・The number of license contracts for APEXFiz®, a subscription service of the SDS®-ONE APEX software, increased mainly from fashion-related educational institutions in Japan and overseas. Additionally, sales of SDS®-ONE APEX grew because of a sales increase in flat knitting machines. ・Sales volume decreased for the P-CAM® computerized cutting machine. 【Globe knitting machines】 ・Net sales decreased because capital spending by overseas major users remained weak. -5-
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Sales Composition by Segment 〔Consolidated〕（FY2025 2Q） Flat Knitting Machines ¥1,351 million （7.5%） Design System Glove and Sock Knitting Machines ¥249 million （1.4％） ¥13,482 million （74.5%） Other ¥3,009 million （16.6％） Total 18,092 million yen ( ) is the sales composition ratio. -6-
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Sales and Operating Income Composition by Segment （FY2025 2Q） (million yen) -7- 213026 Net Sales Comparison with previous year (%) Operating income Comparison with previous year (%) Flat Knitting Machine 13,482 +35.2 1,751 +245.2 Design System 1,351 (1.4) 288 (10.7) Glove and Sock Knitting Machines 249 (41.9) 39 +12.3 Other 3,009 +0.3 603 +47.4 Corporate elimination (2,763) Total 18,092 +22.5 (79) ―
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Flat Knitting Machines Segment WHOLEGARMENT® Flat Knitting Machine ・SWG®-XR and MACH2®XS sterically knitting the whole wear ・Realizing environment-friendly manufacturing ・SWG®-N2 covering small-type merchandise such as manufacturing of small fashion goods and masks Computerized Flat Knitting Machine ・Making wear by knitting the fabric for each part, sewing and linking ・SRY®, N.SIR®, N.SVR®SP and N.SVR® adding value to knitting fabric ・N.SSR® used to manufacture the volume zone for Asia （million yen） The ratio of WHOLEGARMENT® net sales stood at around 19% (27% in the same period last year) Developments in net sales of flat knitting machines and ratio of WHOLEGARMENT® -8- 10,477 12,899 14,158 9,971 13,482 0% 10% 20% 30% 40% 50% 60% 0 5,000 10,000 15,000 20,000 25,000 30,000 FY2021 2Q FY2022 2Q FY2023 2Q FY2024 2Q FY2025 2Q Flat knitting Machine Ratio of WHOLEGARMENT®
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Design Software 「APEXFiz®」 ・Subscription software of Design System ・The software can be downloaded to PCs and makes it possible to create designs anytime and anywhere. Design systems Segment （million yen） 3D Design system SDS®-ONE APEX4 ・Installing software specializing in the programming of knitting machines and pattern CAD, as well as textile design, including flat knitting, fabric, print, and circular knitting and simulation P-CAM® Cutting Machines ・Providing the automated cutting machine, as well as the spreading, labeling, and pick-up equipment, to save manpower in the processes before and after fabric cutting. Penetration is sought into a variety of industries that include apparel, automobiles, and industrial materials as Shima Cutting Solutions. The ratio of P-CAM® to net sales increased to approximately 49%. (52% in the same period last year) -9- 1,310 1,599 1,711 1,371 1,351 0% 20% 40% 60% 80% 0 500 1,000 1,500 2,000 FY2021 2Q FY2022 2Q FY2023 2Q FY2024 2Q FY2025 2Q Design System Segment Ratio of P-CAM®
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Sales by Region 〔Consolidated〕 （FY2025 2Q） ( ) is the composition ratio. 9.3 billion yen (51%) 2.9 billion yen (16%)1.0 billion yen (5%) AsiaEurope Japan Other areas Middle East Total 18 billion yen 4.0 billion yen (23%) -10- 0.8 billion yen (5%)
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Consolidated Sales by Region 〔Consolidated〕 (FY2025 2Q) FY2025 2Q FY2024 2Q Comparison with previous year (%) Japan 2,901 2,778 +4.4 Europe 4,083 3,387 +20.5 Asia 9,250 6,379 +45.0 Middle East 1,004 1,141 (12.0) Other Areas (Overseas) 852 1,084 (21.4) Total 18,092 14,771 +22.5 (million yen) -11-
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Developments in Quarterly Orders Received, Sales and Backlogs 〔Consolidated〕 (Orders received/Sales) million yen (Backlogs) million yen Orders received Sales Backlogs -12- 0 4,000 8,000 12,000 16,000 0 6,000 12,000 18,000 24,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2021 FY2022 FY2023 FY2024 FY2025
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Developments in Quarterly Results 〔Consolidated〕 (million yen) -13- FY2023 FY2024 FY2025 １Q ２Q ３Q ４Q １Q ２Q 3Q 4Q １Q 2Q Net Sales 11,695 7,474 7,112 9,628 8,061 6,710 7,091 10,656 10,519 7,573 Operating income 695 △327 391 △328 △493 △1,444 △7,854 △2,121 307 △387 Ordinary income 918 △353 633 △180 △343 △1,692 △7,484 △1,961 1,012 △232 Net income attributable to owners of the parent 740 △372 616 44 △380 △1,744 △9,153 △2,994 907 △235 Orders received 5,507 5,413 6,333 8,263 8,224 4,712 6,982 9,850 6,207 5,498 Backlogs 4,201 3,669 4,428 4,419 6,102 5,584 6,825 7,385 4,641 4,008
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FY 2025 2Q FY 2024 Increase / decrease Current assets 77,798 74,205 3,593 Fixed assets 26,237 25,200 1,036 (Property, plant, and equipment) 14,120 14,186 (66) (Intangible fixed assets) 102 78 24 (Investments and other assets) 12,014 10,936 1,078 Total assets 104,036 99,405 4,630 Current liabilities 21,108 17,632 3,475 Long-term liabilities 4,004 4,032 (28) Total liabilities 25,112 21,665 3,446 Shareholder’s equity 65,545 65,983 (438) Accumulated other comprehensive income 13,335 11,718 1,617 Equity warrants 14 13 1 Non-controlling interest 28 25 3 Total net assets 78,923 77,740 1,183 Total liabilities and net assets 104, 036 99,405 4,630 Cash and deposits 18,796 million yen in the first half of the fiscal year ending March 31, 2026 (14,129 million yen at the end of the previous period), increase 4,667 million yen from the end of the previous period Trade accounts receivable 36,008 million yen in the first half of the fiscal year ending March 31, 2026 (35,341 million yen at the end of the previous period), increase 666 million yen from the end of the previous period Inventories 23,223 million yen in the first half of the fiscal year ending March 31, 2026 (24,982 million yen at the end of the previous period), down 1,758 million yen from the end of the previous period Equity Ratio 75.8% (78.2% End of fiscal year ended March 31, 2025) Balance Sheet 〔Consolidated〕 (FY 2025 2Q) (million yen) (Figures of less than one million are rounded down) -14-
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Statements of Cash Flows 〔Consolidated〕 Cash flows from operating activities Increase of 1,656 million yen mainly due to an increase in inventories. Cash flows from investing activities Decrease of 5,334 million yen resulting from time deposits and the acquisition of property, plant, and equipment. Cash flows from financing activities Increase of 3,432 million yen mainly due to an increase in borrowings. Cash and cash equivalents at end of year Decrease of 92 million yen from the end of the previous year. Title of accounts FY 2025 2Q FY 2024 2Q Cash flows from operating activities 1,659 （1,651） Cash flows from investing activities （5,334） （747） Cash flows from financing activities 3, 432 3,025 Effect of exchange rate changes on cash and cash equivalents 153 (532) Increase (decrease) in cash and cash equivalents (92) 93 Cash and cash equivalents at beginning of year 10,363 12,809 Cash and cash equivalents at end of year 10,271 12,903 (Figures of less than one million are rounded down) （Terms: million yen） -15-
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-16- Ⅱ．Forecast〔Consolidated〕
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Forecast〔Consolidated〕 -17- FY2025 Comparison with the previous year (%) FY2024 Net Sales 44,500 +36.8％ 32,520 Operating income 1,500 － (11,914) Ordinary Income 2,300 － (11,481) Net income Attributable to owners of the parent 2,000 － (14,275) (million yen) (million yen) Forecast of currency rates for March 2026: 140 JPY/USD, 160 JPY/EUR
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-18- Ⅲ．Shareholder Returns
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Shareholder Returns (yen) -19- 0 10 20 30 2021/3 2022/3 2023/3 2024/3 2025/3 2026/3 （Plan） 10.0 10.0 3.Fiscal year ending March 31, 2026 (Plan): Interim dividend of 10.0 yen, Year-end dividend of 10.0 yen 【Revisions to the forecast】 We are committed to enhancing shareholder returns by paying dividends to shareholders with a target consolidated dividend payout ratio of 40 percent while endeavoring to make proactive growth investments for increased profitability and to strengthen our financial position in accordance with Ever Onward 2026, our three-year medium-term management plan. 1.Acquired one million treasury stocks (2.90%:total number of shares issued [excluding treasury shares]) *Announced on May 9 and completely acquired on September 24 2.Canceled one million treasury stocks (2.79%:total number of shares issued before cancellation) *Announced on May 9 and canceled on October 31
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-20- ≪Topics≫ Overseas trade show Pitti Immagine Filati 97 (Florence, Italy, for July 1-3, 2025) Set up a booth at the 97th Pitti Immagine Filati where related parties of global apparel brands and knitwear manufacturers visited from 50 countries or more. The company introduced three models, including flat knitting machines exhibited for the first time in Italy, as well as digital solutions, including yarnbank® and SHIMADatamall and the latest knit products. These new technologies, which materialize complex knitted fabrics and delicate expression of design, attracted the attention of many people. Additionally, the company exhibited works of students from the global fashion academy in Florence to deliver the attraction of flat-knitted works made by new creators. We made an appeal about the technical and proposal capacities as well as sought to develop future designers of knitted products and to increase the recognition of flat-knitted products among young people.
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≪Topics≫ -21- 35.0 55.0 55.0 20.0 Domestic trade show The Tokyo International Gift Show in September 2025 is one of the largest trade shows in Japan where about 2,000 companies set up booths and 140,000 persons visited. The company made a strong appeal about innovative technology and concrete cases of uses for many visitors, performing a demonstration of making business card cases from genuine and artificial leathers with cutting machines. Setting up a booth at the gift show generated good results in terms of the development of new customers, and we got a response toward future growth. The 100th Tokyo International Gift Show Fall 2025 (Tokyo for September 3–5)
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The plans, business result forecasts, and strategies of the Company as described herein are based on information available as of the day of the announcement with specific assumptions considered reasonable; consequently, they may largely differ due to a variety of different factors. Please understand this in advance.