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1 ー Agenda ー Tsubakimoto Chain Co. FY2025 Q2 Settlement of Accounts 説明内容 説明者 予定時間 ・FY 2025 Second Quarter Results ・Initiatives for Realizing Sustainable Growth TakatoshiKimura President and COO Representative Director 35 mins ・Q&A President, Executive Officers in Charge of Business Operations and Financial and Corporate Planning Affairs 25 mins
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2 FY2025 Q2 Review Highlights of Consolidated Results1 ↓ YOY sales decreased by 0.5%, operating income decreased by 12.2% FY2024 1H ACT FCT ACT YOY % Vs. FCT % Net sales 136,360 140,000 135,634 (725) -0.5% (4,365) -3.1% Operating income 9,459 9,500 8,302 (1,157) -12.2% (1,197) -12.6% ％ 6.9% 6.8% 6.1% Ordinary income 11,225 10,000 10,116 (1,109) -9.9% 116 ＋ 1.2% Net income 10,014 10,000 9,921 (93) -0.9% (78) -0.8% Exchange rates (USD) 152.77 140.00 146.02 (EUR) 166.06 160.00 168.05 (RMB) 21.06 20.00 20.44 FY2025 1H Inc / Dec (Yen, millions)
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3 FY2025 Q2 Review Breakdown by Operations2 *1 Sales figures include internal sales and transfers between segments *2 Other" is not a reportable segment ◆ Motion Control and Mobility increased sales and income. Chain increased sales but decreased profits due to tariff impacts in the U.S. and other factors. Materials Handling recorded a decrease in revenue and a loss due to lower sales in the Americas. FY2024 1H FY2024 1H ACT FCT ACT YOY Vs. FCT ACT FCT ACT YOY Vs. FCT Chain 47,271 48,000 49,064 ＋ 3.8% ＋ 2.2% 7,247 7,000 6,920 -4.5% -1.1% Motion Control 11,363 12,000 11,879 ＋ 4.5% -1.0% 145 400 423 ＋ 190.8% ＋ 6.0% Mobility 44,688 45,000 45,333 ＋ 1.4% ＋ 0.7% 3,684 3,900 4,472 ＋ 21.4% ＋ 14.7% Materials Handling 33,005 35,000 29,610 -10.3% -15.4% (106) 700 (494) ― ― Other*2 1,702 1,600 1,627 -4.4% ＋ 1.7% (504) (600) (484) ― ― Adjust (1,670) (1,600) (1,880) ― ― (1,006) (1,900) (2,534) ― ― All 136,360 140,000 135,634 -0.5% -3.1% 9,459 9,500 8,302 -12.2% -12.6% (Yen, millions) Sales*1 Operating income FY2025 1H Inc / Dec FY2025 1H Inc / Dec
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4 FY2025 Q2 Review Regional Sales Breakdown3 FY2024 Q2 Overseas sales ratio: 66.5％ FY2025 Q2 Overseas sales ratio: 64.2％ Consolidated Sales ¥ 136.3 billion Consolidated Sales ¥ 135.6 billion
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5 FY2025 Q2 Review Analysis of Inc/Dec in Consolidated Operating Income4 Increase Factors Decrease Factors Operating Income decreased by 1.1 billion yen FY2024‐Q2 vs. FY2025‐Q2 （Unit: ¥100 million）
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6 FY2025 Q2 Review Chain Operations5 Sales Trends by Region Causes of change in operating income （Unit: ¥1 million ） YOY Vs. Forecast Sales +1,792 million yen (+3.8％) Sales increased due to strong performance in Japan and the Americas, as well as contributions from subsidiaries acquired in Europe last fiscal year. Sales +1,064 million yen (+2.2％) Sales increased due to strong performance in Japan and the Americas. Operating Income ▲326 million yen (▲4.5％) Profit decreased due to increased tariff costs in the United States, among other factors. Operating Income ▲79 million yen (▲1.1％) Same as left. （Unit: ¥100 million）
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7 FY2025 Q2 Review Motion Control Operations5 Causes of change in operating income （Unit: ¥100 million） YOY Vs. Forecast Sales +516 million yen (+4.5％) Japan's recovery and continued strong performance at ATR (manufacturing and sales of couplings) in North America drove sales increase. Sales ▲120 million yen (▲1.0％) Japan's recovery came in slightly below expectations. Operating Income +278 million yen (+190.8％) Profits increased due to higher sales and the effect of price increases implemented in the latter half of the previous fiscal year. Operating Income +23 million yen (+6.0％) Despite lower-than-expected sales, cost improvement effects in Japan led to increased profits. Sales Trends by Region （Unit: ¥1 million ）
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8 FY2025 Q2 Review Mobility Operations5 Causes of change in operating income YOY Vs. Forecast Sales +645 million yen (+1.4％) Sales increased due to strong sales in Japan and the United States, as well as contributions from new projects in Europe, etc. Sales +333 million yen (+0.7％) Almost in line with expectations, with a slight increase in revenue driven by strong performance in the U.S. Operating Income +788 million yen (+21.4％) Profit increased, mainly driven by higher sales in Japan. Operating Income +572 million yen (+14.7％) Income increased as tariff impacts were lower than initial estimates. （Unit: ¥100 million） Sales Trends by Region （Unit: ¥1 million ）
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9 FY2025 Q2 Review Materials Handling Operations5 Causes of change in operating income YOY Vs. Forecast Sales ▲3,394 million yen (▲10.3％) Despite an increase in sales in Japan, overall sales declined due to a decrease in sales of systems for automobile manufacturing lines in the United States. Sales ▲5,389 million yen (▲15.4％) Same as left. Operating Income ▲388 million yen (－) With lower revenue unable to cover fixed costs, the U.S. recorded a loss, leading to higher segment losses. Operating Income ▲1,194 million yen (－) Same as left. （Unit: ¥100 million） Sales Trends by Region （Unit: ¥1 million ）
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10 Consolidated Earnings Forecast for FYE March 2026
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11 6 ◆ Revised downward from the previous forecast (released May 14) Sales are projected to increase by 1.7% year-on-year, while operating profit is expected to decrease by 12.5%. FYE March 2026 Annual Forecast FY2024 YOY ACT 1H(ACT) 2H Full year Inc / Dec Net sales 279,193 135,634 148,366 284,000 ＋ 1.7% Operating income 22,854 8,302 11,698 20,000 -12.5% ％ 8.2% 6.1% 7.9% 7.0% Ordinary income 25,332 10,116 11,884 22,000 -13.2% Net income 22,122 9,921 9,079 19,000 -14.1% Exchange rates (USD) 152.62円 146.02円 148.00円 (EUR) 163.87円 168.05円 170.00円 (RMB) 21.03円 20.44円 20.00円 (Yen, millions) FY2025 forecast
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12 Forecasted Segment Performance for FYE March 20267 *1 Sales figures include internal sales and transfers be tween segments *2 Other" is not a reportable segment ◆ Sales and profit for Motion Control have been revised upward. Sales for Chain and profit for Mobility have been revised upward. Sales and profit for Materials Handling have been revised downward, reflecting U.S. order performance through the first half of the fiscal year and other factors. FY2024 FY2024 Actual Current Forecast Original Forecast YOY Vs. Original Forecast Actual Current Forecast Original Forecast YOY Vs. Original Forecast Chain 96,277 100,500 98,500 ＋ 4.4% ＋ 2.0% 15,585 15,000 15,000 - 3.8% ＋ 0.0% Motion Control 23,387 25,000 24,500 ＋ 6.9% ＋ 2.0% 770 1,200 1,000 ＋ 55.8% ＋ 20.0% Mobility 91,193 92,000 92,000 ＋ 0.9% ＋ 0.0% 8,287 9,000 7,900 ＋ 8.6% ＋ 13.9% Materials Handling 68,313 67,000 75,000 - 1.9% - 10.7% 1,247 800 2,400 - 35.9% - 66.7% Other*2 3,547 3,400 3,300 - 4.2% ＋ 3.0% (833) (1,300) (900) ― ― Adjust (3,525) (3,900) (3,300) ― ― (2,203) (4,700) (3,900) ― ― All 279,193 284,000 290,000 ＋ 1.7% - 2.1% 22,854 20,000 21,500 - 12.5% - 7.0% (Yen, millions) Sales *1 Operating income FY2025 Inc / Dec FY2025 Inc / Dec
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13 Chain Operations Forecast8 Causes of change in operating income ※1 Sales figures include internal sales and transfers be tween segments ✔ Sales Although largely in line with the initial forecast, sales are projected to increase due to recovering demand in Japan and the U.S. ✔ Operating Income Despite improving costs through automation, labor-saving measures, and in-house production, profits are expected to decline due to the impact of U.S. tariffs. （ Millions of yen ） FY2024 FY2024 Actual 1H Actual 2H Forecast Current Forecast Original Forecast YOY Vs. Original Forecast Actual 1H Actual 2H Forecast Current Forecast Original Forecast YOY Vs. Original Forecast Chain 96,277 49,064 51,435 100,500 98,500 ＋ 4.4% ＋ 2.0% 15,585 6,920 8,079 15,000 15,000 - 3.8% ＋ 0.0% （ Millions of yen ） Sales *1 Operating Income FY2025 Inc / Dec FY2025 Inc / Dec
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14 Motion Control Operations Forecast8 ※1 Sales figures include internal sales and transfers be tween segments （ Millions of yen ） ✔ Sales Although there has been no significant change to the initial forecast, we do anticipate a recovery in both the semiconductor and machine tool industries in Japan. ✔ Operating Income We anticipate an increase in profit due to a recovery in sales. Causes of change in operating income FY2024 FY2024 Actual 1H Actual 2H Forecast Current Forecast Original Forecast YOY Vs. Original Forecast Actual 1H Actual 2H Forecast Current Forecast Original Forecast YOY Vs. Original Forecast Motion Control 23,387 11,879 13,120 25,000 24,500 ＋ 6.9% ＋ 2.0% 770 423 776 1,200 1,000 ＋ 55.8% ＋ 20.0% （ Millions of yen ） Sales *1 Operating Income FY2025 Inc / Dec FY2025 Inc / Dec
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15 Mobility Operations Forecast8 ※1 Sales figures include internal sales and transfers be tween segments ✔ Sales We anticipate revenue to increase due to continued production increases by European automakers, Japan’s recovery following its weak start last fiscal year, and the continued robust performance in the U.S. ✔ Operating Income In addition to an increase in sales driving improved profitability, earnings growth is anticipated as the impact of U.S. tariffs is expected to be smaller than initially projected. Causes of change in operating income （ Millions of yen ） FY2024 FY2024 Actual 1H Actual 2H Forecast Current Forecast Original Forecast YOY Vs. Original Forecast Actual 1H Actual 2H Forecast Current Forecast Original Forecast YOY Vs. Original Forecast Mobility 91,193 45,333 46,666 92,000 92,000 ＋ 0.9% ＋ 0.0% 8,287 4,472 4,527 9,000 7,900 ＋ 8.6% ＋ 13.9% （ Millions of yen ） Sales *1 Operating Income FY2025 Inc / Dec FY2025 Inc / Dec
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16 Materials Handling Operations Forecast8 ※1 Sales figures include internal sales and transfers be tween segments ✔ Sales Despite an increase in sales to the Japanese construction machinery industry and the consolidation of an Indian subsidiary, revenue is expected to decline due to decreased sales of systems to the U.S. automotive industry. ✔ Operating Income Although profitability has improved in Japan, a decline in U.S. sales is expected to result in lower overall profits. Causes of change in operating income （ Millions of yen ） FY2024 FY2024 Actual 1H Actual 2H Forecast Current Forecast Original Forecast YOY Vs. Original Forecast Actual 1H Actual 2H Forecast Current Forecast Original Forecast YOY Vs. Original Forecast Materials Handling 68,313 29,610 37,389 67,000 75,000 - 1.9% - 10.7% 1,247 (494) 1,294 800 2,400 -35.9% - 66.7% （ Millions of yen ） Sales *1 Operating Income FY2025 Inc / Dec FY2025 Inc / Dec
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17 ✓ Capital investment to strengthen growth capabilities ・Investment in automation and efficiency enhancement of production systems (All businesses) ・Expansion of production facilities in North America, etc. Capital Expenditure Plan9
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18 Shareholder Returns10 ✓ Shareholder Returns: Annual dividend of ¥80 per share and ¥10 billion share buyback program currently underway * A stock split at a ratio of three shares for every one common share took effect on October 1, 2024. FY2024 dividends are stated without adjustment for the stock split; on a post-split basis, they would total ¥146 (¥99 interim, ¥47 year-end).
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19 Mid-Term Management Plan 2025 Sustainability Initiatives
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20 Basic Approach ・Contribute to the realization of a sustainable society through business activities based on the TSUBAKI SPIRIT. ・Enhance corporate value through technological innovation and become a company needed by society. ・Build trust with stakeholders TSUBAKI SPIRIT Sustainability Basic Policy CSR（Social Responsibility） CSV（Value Creation） Materiality Safety and health of employees：Above all else Quality First：Product quality / Quality governance Sustainable Products Eco Products Social Products Risk Management Securing Opportunities New Products New Business Defense Offense Climate Change Compliance Respect for human rights Crisis management Sustainable procurement Information security HR development Work style reform Engagement Human capital Diversity Info disclosure Challenges our company must address Creating a people-friendly society Creating an Earth-friendly society Building a safe and secure infrastructure for living Sustainability Initiatives
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21 CSR：Initiatives Toward Carbon Neutrality
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22 Quit Stop Lower Pick up Repair Change Sustainability Initiatives Initiatives Toward Carbon Neutrality ◆ Goals and Activity History Set goals: Officially launched CO₂ reduction activities CDP-climate change / Participated in water program Started Energy JIT activities at the model factory Started purchasing FIT non-Fossil renewable energy certificates Obtained SBT certification, set ICP (Internal Carbon Price) Launched decarbonization project for heat treatment processes CSR / Defense Six Rules for Energy Conservation ① Energy “JIT: Just-in-Time” Activities = Review energy wastage in production processes in accordance with the Six Principles of Energy Conservation ② Launch project for decarbonizing steel heat treatment processes (Scope 1 CO2 Emissions Reduction) Promote energy conservation and decarbonization through our own activities FY2017 FY2018 FY2021 FY2022 FY2023 FY2024 ◆Strategy Strategy 1
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23 Initiatives Toward Carbon Neutrality Sustainability Initiatives Mobility Division Saitama Plant Domestic total Global total FY2024 power generation results 1,595 MWh 2,469 MWh 5,901 MWh Percentage of total power consumption 4.1% 2.3% 3.2% CSR / Defense Reduce Scope 2 CO2 emissions by installing on-site power generation Reduce Scope 2 CO2 emissions through the procurement of carbon-free power Mobility Division Saitama Plant Domestic total Global total FY2024 Purchase history 15,000 MWh 36,421 MWh 43,195 MWh Percentage of total power consumption 38.1% 34.6% 23.2% FY2025 Purchase plan 22,920 MWh 46,014MWh 60,645 MWh Percentage of total power consumption 59.6% 44.7% 33.4% Renewable energy type being purchased FIT renewable energy with non-fossil certificate ― Strategy 2 Strategy 3 Strategy 4 Switch to a virtual power purchase agreement (PPA) for purchased carbon-free electricity
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24 CSV：Initiatives for New Business Creation
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25 ・Energy Infrastructure Business Environmental business PCS (Power Control System） ・Agriculture Business ・New Mobility Business ↪Ultra-compact vehicles In-vehicle units Electric bicycles (LA SI QUE) Industrial Drone ・Maintenance Business （after-sales service) ↪Remote maintenance ・Human Assist Business Extended physical function Rehabilitation Nursing care ・Life Science Business Regenerative medicine Direction and Purpose of New Business Development Creating a people-friendly society Creating an Earth-friendly society Building a safe and secure infrastructure for living Solving Social Issues Initiatives for New Business Creation CSV / Offence
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26 Initiatives for New Business Creation Why plant factories? Building a new growth pillar "supporting food" Climate change and extreme weather Stable production is possible. Unaffected by weather conditions. Poor vegetable growth, quality deterioration, and reduced yields Fully Enclosed × Artificial Light Production is possible with a small workforce Scaling Up and Streamlining Declining number of farmers The agricultural workforce is declining due to low birth rates, an aging population, and people leaving farming Efficient use of water resources and energy Toward Circular Agriculture Global resource depletion Water resource depletion, soil contamination from pesticides, etc.
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27 Initiatives for New Business Creation Artificial Light Plant Factory: Why “Lettuce Cultivation”? Most widely used among leafy vegetables High demand throughout the year Production is weather-sensitive, causing prices to spike easily. For raw consumption (upstream integration for added value) Low light saturation point (photosynthetic rate limit) makes it suitable for artificial cultivation. Why “Lettuce”? ５Reasons Annual shipment ranking of leafy vegetables １．Cabbage・・・1.31 Mt ２．Chinese cabbage 0.73Mt ３．Lettuce ・・・・ 0.52Mt Value-added factory vegetables ・Stable supply ・Low bacterial count (long shelf life) ・Pesticide-free ・Low risk of foreign object contamination Light saturation point Lettuce ・・・・ 25,000㏓ （1/4 that of corn）
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28 Initiatives for New Business Creation Market size of lettuce ～Price and Demand～ Low demand High demand Market size 100 billion yen Market size 20 billion yen （Primarily field cultivation） High price Comme- rcial use Retail use Existing customers Future target markets ・Restaurants, tourist hotels ・Convenience stores, prepared foods ・Family restaurants, etc. The goal is to expand the market for factory-grown vegetables by reducing costs to achieve competitive sales prices The goal is to increase the sales price by enhancing added value of plant factory-grown products Comme- rcial use Retail use Mid-price Low price （Primarily produced in plant factories）
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29 Initiatives for New Business Creation Market characteristics and our group’s business model Retail use Commercial use Branding Important None （Priorities are stable supply and consistent quality） Plant size Small（60~80ｇ/plant） Large（200∼300g/plant） Selling price（¥/Kg） High Low Stability Market impact is significant Market impact is small Seasonality Demand declines from autumn through winter Relatively stable The difference between “retail use” and “commercial use” Demand Month Large fluctuations in demand Small fluctuations in demand Demand Month Commercial useRetail use Manage both retail and commercial sales to reduce demand fluctuations and achieve stable profitability
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30 Initiatives for New Business Creation Market Characteristics and Our Group’s Business Model 700円/㎏ ～ 400円/kg Challenges in Plant Factories ～Cost Reduction～ Electricity Depreciation Labor Other (logistics, etc.) Three Major Costs of Plant Factories • Develop LED lighting for plant factories • Utilize solar power and batteries Reduce Electricity Costs • Automate production processes • Implement effective conveying equipment Reduce Labor Costs • Improve cultivation room area efficiency • Reduced lighting equipment through improved LED lighting efficiency Reduce Depreciation Expense Improve profitability through cost reduction
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31 Initiatives for New Business Creation About the Fukui Mihama Plant Creating an attractive plant factory Commenced operations from Aug 1st, 2025 ① Large-scale production of 2.2 tons per day （※At full capacity） → Most other factories produce one ton per day ② Fully automated cultivation process Introduced automation and labor-saving equipment in other processes too → Operates with approximately half the personnel required for comparable facilities. Features of Fukui Mihama Plant
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32 Initiatives for New Business Creation Strengths and future direction of Agriculture Business Strengths of Agriculture Business 01 Equipment development and sales Automation technology that minimizes labor to the extreme 02 Cultivation 03 Sales 04 Consulting Stable priceCultivating safe and secure vegetables Comprehensive consulting End-to-end solutions from equipment development to sales and consulting Automatic transplanter Lift (cultivation rack) AGV Examples of automation equipment for plant factories
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33 Initiatives for New Business Creation Agriculture Business Goals FY2030 Aiming for 5 - 10 billion yen in sales TSUBAKI VEGYMOVE CO. Consulting leveraging cultivation and sales expertise Agriculture Business Division Automated system technology development function Expansion of the Agriculture Business contributes to the realization of sustainable agriculture Leveraging our strengths to become the fifth pillar ① Industry-leading product competitiveness ② Expertise in cultivating a wide range of varieties ③ Sales routes to major customers ④ Supply system via our national alliance network ⑤ Research and development capabilities aligned with needs Track record in developing and supplying efficient automated and labor-saving equipment
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34 This reference document describes our business plans and our earnings outlook. The content of this document is based on current information available to our company and on certain assumptions determined as reasonable. It is not intended to represent a performance commitment. Note that actual results may differ from the earnings outlook described herein, as the results are dependent upon a variety of variables. Based on the Declaration of Partnership Building, Tsubaki Group will promote collaboration and coexistence and co-prosperity with business partners and businesses that aim to create value. At the same time, the Group, based on the multi-stakeholder policy, will work on co-creation of values and improvement of productivity together with stakeholders. The group will appropriately distribute resultant profits and results to multi-stakeholders. Tsubaki Group Customers Employees Community Society Business Partners Shareholders Investors