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Financial Year Ending March 31 , 2027 - First Quarter Explanatory Material August 7 , 2026 Sanoh Industrial Co. , Ltd. Tokyo Stock Exchange : 6584 ( Prime ) © 2026 Sanoh Industrial Co. , Ltd. SANOh
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© 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1 2 Contents of Explanatory Material for FY26Q1 ○ Consolidated Financial Performance ○ Segment Financial Performance ○ Consolidated Non-operating and Extraordinary Items ○ Analysis of Operating Income ○ Consolidated Financial Position ○ Consolidated Cash Flow & CapEx ○ Supplementary: Infographic Quarterly Segment Results
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Summary of FY26Q1 Financial Performance (Year-on-Year) • Sales: Increased due to revenue growth in the Americas, including newly consolidated subsidiaries, tariff pass-through revenue, and the impact of foreign currency translation, despite the absence of the prior-year contribution from new launch sales in Japan. • Operating Income: Decreased by ▲1,313 million yen due to the absence of the prior-year contribution from new launches in Japan, higher new launch expenses in the Americas, adverse foreign exchange impact from the stronger Mexican peso, incomplete pass- through of tariff-related costs, and one-time expenses recorded in Europe. • Ordinary Income: Decreased by ▲1,130 million yen, mainly due to the decrease in operating income, despite foreign exchange gains. • Net Income: Decreased by ▲689 million yen, mainly due to the decrease in ordinary income, despite the absence of special retirement expenses recorded at the German subsidiary in the previous fiscal year. Exchange Rate Particulars Quarter Ended June 30, 2025 Quarter Ended June 30, 2026 Full Year Forecast for the Fiscal Year Ending March 31, 2027 (Announced on May 14, 2026) Amount % Amount % Variance Amount Progress (%) Amount % Net sales 40,263 100.0 42,780 100.0 +2,518 +6.3 167,000 25.6 Operating income 2,250 +5.6 938 +2.2 ▲1,313 ▲58.3 5,500 17.0 Ordinary income 1,893 +4.7 763 + 1.8 ▲1,130 ▲59.7 3,500 21.8 Net income attributable to the shareholders of the parent company 697 +1.7 8 +0.0 ▲689 ▲98.8 1,500 0.5 Currency (1 unit = JPY) June 30, 2025 (Average Rate) June 30, 2026 (Average Rate) Variance USD 152.6 156.9 +3% EUR 160.5 183.7 +14% MXN 7.5 8.9 +20% RMB 20.9 22.7 +8% INR 1.7 1.7 - THB 4.5 5.0 +10% RUB 1.6 2.0 +22% BRL 26.1 29.8 +14% (All amounts are in million yen except percentages, and per share data) FY26Q1 Consolidated Financial Performance 3© 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1
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Particulars Sales Operating Income Quarter Ended June 30, 2025 Quarter Ended June 30, 2026 Variance Quarter Ended June 30, 2025 Quarter Ended June 30, 2026 Variance Japan 13,482 12,097 ▲1,385 685 427 ▲258 Americas 16,946 20,017 +3,071 877 251 ▲627 Europe 5,052 5,644 +592 91 ▲151 ▲242 China 2,955 2,180 ▲774 ▲181 ▲234 ▲52 Asia 7,514 8,118 +604 841 752 ▲89 Adjs. ▲5,686 ▲5,276 +410 ▲63 ▲107 ▲45 TOTAL 40,263 42,780 +2,518 2,250 938 ▲1,313 (All amounts are in million yen except percentages, and per share data) FY26Q1 Segment Financial Performance Japan (Revenue & Profit Decline) Revenue decreased due to the absence of the prior-year contribution from high-unit-price new launch sales. Operating profit decreased due to the impact of lower revenue, although no subsidiary acquisition expenses were incurred during the current period. Americas (Revenue Growth & Profit Decline) Revenue increased due to stable sales to Japanese OEMs in North America, tariff pass-through revenue, and the newly consolidated Mexican subsidiary. Operating Income decreased due to higher costs associated with preparations for new launches, the impact of incomplete recovery of tariff-related costs, and foreign exchange effects. Europe (Revenue Growth & Operating Loss) Revenue increased due to the impact of foreign currency translation, while sales volume remained at the same level as the previous year. Incurred an operating loss despite personnel reduction effects, mainly due to inventory-related adjustments. China (Revenue Decline & Operating Loss) Revenue decreased due to the liquidation of the Chinese subsidiary and continued weak sales to Japanese OEMs. Operating income decreased due to lower revenue and losses associated with the liquidation of the Chinese subsidiary, despite reduced depreciation expenses following the fixed asset impairment recognized in the previous fiscal year. Asia (Revenue Growth & Profit Decline) Revenue increased due to higher sales in India and the impact of foreign currency translation. Operating income declined due to higher material and energy costs driven by the Middle East situation and foreign exchange effects, along with increased personnel expenses. Highlights of the Quarter Ended June 30, 2026 (Year-on-Year) 4© 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1
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Particulars Quarter Ended June 30, 2025 Quarter Ended June 30, 2026 Major Factors for Change Amount Amount Variance Amount % Operating Income 2,250 938 ▲1,313 ▲58.3 Non-operating Income 191 387 +195 Interest income: +22 Foreign exchange gain: +168 (FY25Q1: 0 → FY26Q1: +168) Expenses 549 561 ▲13 Foreign exchange loss: +199 (FY25Q1: ▲199 → FY26Q1: 0) Interest expense: ▲106 Ordinary Income 1,893 763 ▲1,130 ▲59.7 Extraordinary Gains 10 96 +87 Reversal of provision for loss on liquidation of subsidiaries +53 Gain on sale of fixed assets: +34 Losses 207 11 +196 Special retirement payments: +194 (FY25Q1: ▲194 → FY26Q1 : 0) Profit before Income Taxes 1,695 848 ▲848 ▲50.0 Corporate Taxes, etc. 765 585 +180 Net Income attributable to Non- controlling shareholders 233 255 ▲22 Net Income attributable to Owners of the Parent Company 697 8 ▲689 ▲98.8 (All amounts are in million yen except percentages, and per share data) FY26Q1 Consolidated Non-operating and Extraordinary Items 5© 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1
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Note: Value Added (Volume Mix) = Change in consolidated sales (after currency conversion) × YoY value added ratio (after currency conversion). (All amounts are in million yen except percentages, and per share data) FY26Q1 Analysis of Operating Income Revenue increased on higher equipment sales in the Americas, tariff pass-through revenue, and the consolidation of the Mexican subsidiary; however, lower sales in Japan, adverse foreign exchange impacts, and inventory-related adjustment led to a year-on-year decline in profit. 6 Year-on-Year ▲1,313 Increase in import tariff expenses and related costs in North America © 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1 Revenue growth driven by increased equipment sales in the Americas, tariff pass- through revenue, and the consolidation of the Mexican subsidiary was offset by lower sales in Japan, adverse foreign exchange effects from the stronger Mexican peso, and inventory-related adjustments in Europe, putting pressure on profitability.
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Particulars Year Ended March 31, 2026 Quarter Ended June 30, 2026 Amount % Amount % Variance Major Factors of Change Current Assets 83,377 58.7 85,050 58.9 +1,673 Total assets: +2,349 (Increase) ① Cash and deposits ▲1,141 ② Trade receivables +1,941 ③ Inventories +883 ④ Tangible fixed assets ▲122 ⑤ Investment securities +692 Fixed Assets 58,553 41.3 59,228 41.1 +676 Total Assets 141,929 100.0 144,278 100.0 +2,349 Current Liabilities 52,982 37.3 55,535 38.5 +2,553 Total liabilities: +2,401 (Increase) ⑥ Trade payables +275 ⑦ Short-term borrowings +899 ⑧ Provision for bonuses +730 ⑨ Other current liabilities +1,394 ⑩ Long-term borrowings ▲256 Fixed Liabilities 36,979 26.1 36,827 25.5 ▲152 Total Liabilities 89,961 63.4 92,362 64.0 + 2,401 Total Net Assets 51,968 36.6 51,916 36.0 ▲52 Net assets: ▲52 Decrease ⑪ Retained earnings ▲501 ⑫ Valuation difference on available-for-sale securities +465 ⑬ Foreign currency translation adjustment +476 ⑭ Non-controlling interests ▲496 Total Liabilities and Net Assets 141,929 100.0 144,278 100.0 +2,349 Note FY25Q4 FY26Q1 D/E Ratio 1.19 → 1.19 Equity Ratio 33.8 → 33.6 FY25Q4 FY26Q1 ① Interest Bearing Liabilities 57,219 57,856 ② Equity 48,003 48,447 ① ÷ ② 1.19 1.19 (All amounts are in million yen except percentages, and per share data) FY26Q1 Consolidated Financial Position 7© 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1
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Capital Expenditure/Depreciation Consolidated Cash Flow Operating Activities +891 Investing Activities ▲1,465 Financing Activities ▲568 ※ Translation adjustments related to cash and cash equivalents (+104 million yen) have been included in financing activities. 24,519 23,378 Particulars Quarter Ended June 30, 2025 Quarter Ended June 30, 2026 Amount Variance Capital Expenditure 2,176 1,443 ▲732 Depreciation 1,643 1,853 +210 Cash and cash equivalents as of June 30, 2026 Cash and cash equivalents as of March 31, 2026 ※ • Income Before Tax +848 • Depreciation +1,853 • Changes in Working Capital ▲2,048 • Changes in Accounts Payable ▲153 • Provision for bonuses +733 • Accrued expenses +329 • Income Tax Payment ▲996 • Special Retirement Payment ▲311 • Capital Expenditure ▲1,443 (All amounts are in million yen except percentages, and per share data) FY26Q1 Consolidated Cash Flow & CapEx 8 • Changes in interest-bearing Debt +530 • Dividend Payments ▲ 499 • Dividends paid to Non-controlling interests ▲ 703 • Foreign Exchange Difference※ +104 © 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1
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Infographic Quarterly Segment Results Supplementary 9© 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1
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36,446 38,109 40,154 42,105 39,143 41,952 38,882 39,561 40,263 38,259 38,672 42,193 42,780 1,112 2,075 2,313 2,554 1,713 671 1,236 1,240 2,250 1,111 287 425 938 3.1% 5.4% 5.8% 6.1% 4.4% 1.6% 3.2% 3.1% 5.6% 2.9% 0.7% 1.0% 2.2% (All amounts are in million yen except percentages, and per share data) [Supplementary] Quarterly Segment Results: Consolidated Sales 156,814 Sales 159,538 Sales 159,387 Sales 42,780 Operating Income 8,053 Operating Income 4,860 Operating Income 4,073 Operating Income 938 Operating Income Margin 5.1% Operating Income Margin 3.0% Operating Income Margin 2.6% Operating Income Margin 2.2% Exchange rate (Yen/USD) 140.6 Exchange rate (Yen/USD) 151.6 Exchange rate (Yen/USD) 149.7 Exchange rate (Yen/USD) 156.9 Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q4 Year ending March 31, 2024 Year ending March 31, 2025 Year ending March 31, 2026 Year ending March 31, 2027 Operating Income Margin Sales Operating Income 10© 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1
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11,369 12,550 13,763 11,589 11,580 12,727 12,143 11,571 13,482 13,259 12,783 12,360 12,097 1.5% 5.6% 7.7% 1.3% 0.7% 3.9% 1.7% 2.0% 5.1% 4.3% 4.9% 1.3% 3.5% 174 706 1,055 148 81 496 205 232 685 573 629 166 427 (All amounts are in million yen except percentages, and per share data) [Supplementary] Quarterly Segment Results: Japan Sales 49,271 Sales 48,020 Sales 51,885 Sales 12,097 Operating Income 2,083 Operating Income 1,014 Operating Income 2,053 Operating Income 427 Operating Income Margin 4.2% Operating Income Margin 2.1% Operating Income Margin 4.0% Operating Income Margin 3.5% Exchange rate (Yen/USD) 140.6 Exchange rate (Yen/USD) 151.6 Exchange rate (Yen/USD) 149.7 Exchange rate (Yen/USD) 156.9 Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q4 Operating Income Margin Sales Operating Income 11© 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1 Year ending March 31, 2024 Year ending March 31, 2025 Year ending March 31, 2026 Year ending March 31, 2027
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13,075 14,746 14,949 16,380 16,513 18,556 16,502 15,735 16,946 15,891 16,374 18,610 20,017 ▲ 85 620 191 991 794 6 861 84 877 212 ▲ 469 ▲ 948 251 (All amounts are in million yen except percentages, and per share data) [Supplementary] Quarterly Segment Results: Americas ▲ 0.7% 4.2% 1.3% 6.0% 4.8% 0.0% 5.2% 0.5% 5.2% 1.3% ▲ 2.9% ▲ 5.1% 1.3% Sales 59,150 Sales 67,306 Sales 67,822 Sales 20,017 Operating Income 1,717 Operating Income 1,744 Operating Income ▲327 Operating Income 251 Operating Income Margin 2.9% Operating Income Margin 2.6% Operating Income Margin ▲0.5% Operating Income Margin 1.3% Exchange rate (Yen/USD) 140.6 Exchange rate (Yen/USD) 151.6 Exchange rate (Yen/USD) 149.7 Exchange rate (Yen/USD) 156.9 Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q4 Operating Income Margin Sales Operating Income 12© 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1 Year ending March 31, 2024 Year ending March 31, 2025 Year ending March 31, 2026 Year ending March 31, 2027
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5,648 5,410 5,475 6,086 5,736 6,021 4,717 5,792 5,052 4,914 4,684 5,346 5,644 221 362 88 240 266 ▲ 111 ▲ 298 24 91 ▲ 3 ▲ 128 320 ▲ 151 (All amounts are in million yen except percentages, and per share data) [Supplementary] Quarterly Segment Results: Europe 3.9% 6.7% 1.6% 3.9% 4.6% ▲ 1.8% ▲ 6.3% 0.4% 1.8% ▲ 0.1% ▲ 2.7% 6.0% ▲ 2.7% Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q4 Operating Income Margin Sales Operating Income Sales 22,619 Sales 22,267 Sales 19,996 Sales 5,644 Operating Income 911 Operating Income ▲118 Operating Income 280 Operating Income ▲151 Operating Income Margin 4.0% Operating Income Margin ▲ 0.5% Operating Income Margin 1.4% Operating Income Margin ▲ 2.7% 13© 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1 Year ending March 31, 2024 Year ending March 31, 2025 Year ending March 31, 2026 Year ending March 31, 2027
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4,258 4,273 4,556 5,802 3,340 3,458 3,347 4,213 2,955 2,877 3,098 3,551 2,180 69 22 163 570 ▲ 150 ▲ 336 ▲ 255 ▲ 222 ▲ 181 ▲ 133 ▲ 103 69 ▲ 234 (All amounts are in million yen except percentages, and per share data) [Supplementary] Quarterly Segment Results: China Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q4 Operating Income Margin Sales Operating Income Sales 18,888 Sales 14,358 Sales 12,481 Sales 2,180 Operating Income 824 Operating Income ▲ 963 Operating Income ▲ 348 Operating Income ▲ 234 Operating Income Margin 4.4% Operating Income Margin ▲ 6.7% Operating Income Margin ▲ 2.8% Operating Income Margin ▲ 10.7% 14© 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1 Year ending March 31, 2024 Year ending March 31, 2025 Year ending March 31, 2026 Year ending March 31, 2027 1.6% 0.5% 3.6% 9.8% ▲ 4.5% ▲ 9.7% ▲ 7.6% ▲ 5.3% ▲ 6.1% ▲ 4.6% ▲ 3.3% 2.0% ▲ 10.7%
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7,011 6,681 7,367 7,697 7,364 7,293 7,426 7,519 7,514 7,172 7,305 7,773 8,118 10.0% 5.4% 9.6% 8.0% 10.5% 8.2% 9.2% 10.5% 11.2% 8.2% 8.5% 7.1% 9.3% 702 360 708 615 773 597 686 791 841 586 620 553 752 Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q4 Operating Income Margin Sales Operating Income (All amounts are in million yen except percentages, and per share data) [Supplementary] Quarterly Segment Results: Asia Sales 28,756 Sales 29,601 Sales 29,763 Sales 8,118 Operating Income 2,384 Operating Income 2,847 Operating Income 2,599 Operating Income 752 Operating Income Margin 8.3% Operating Income Margin 9.6% Operating Income Margin 8.7% Operating Income Margin 9.3% 15© 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1 Year ending March 31, 2024 Year ending March 31, 2025 Year ending March 31, 2026 Year ending March 31, 2027
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This presentation contains forward-looking statements reflecting Sanoh’s plans, forecasts, and expectations based on the information available as of the publication date. These statements are not guarantees of future performance and are subject to various risks, uncertainties and factors that may cause Sanoh’s actual results to differ materially from the ones expressed or implied by these forward-looking statements. Such factors include, but are not limited to, changes in economic conditions, industry developments, and technological advancements. Significant changes will be announced as they occur. This presentation is only for the purpose of disclosure of information and should not be construed as an offer or solicitation to invest. The English version of this presentation has been translated from Japanese. In the event of any discrepancy, the original Japanese version shall prevail. Cautionary Note On Forward-Looking Statements 16© 2026 Sanoh Industrial Co., Ltd. | Explanatory Material for FY26Q1