Interim report
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This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original version shall prevail . FASF August 7 , 2026 Consolidated Financial Results for the Three Months of the Fiscal Year Company name : Exchanges listed on : Company code : URL : Representative Inquiries : Tel : Ending March 31 , 2027 ( Under Japanese GAAP ) Matsuda Sangyo Co. , Ltd. Tokyo Stock Exchange ( Prime Market ) 7456 https://www.matsuda-sangyo.co.jp Yoshiaki Matsuda , President Yoshinori Tanaka , Director / General Manager of CSR IR Dept. + 81-3-5381-0728 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Yes Holding of financial results briefing : No ( Figures are rounded down to the nearest million yen . ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( April 1 , 2026 – June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages are year - on - year changes . ) Three months ended June 30 , 2026 Net sales ( millions of yen ) 208,650 Operating profit Ordinary profit Profit attributable to owners of parent June 30 , 2025 146,627 % ( millions of yen ) 42.3 10,315 31.2 3,743 % ( millions of yen ) 175.6 10,938 19.7 3,962 % 176.1 6.2 ( millions of yen ) % 7,623 153.1 3,012 16.8 ( Note ) Comprehensive income Three months ended June 30 , 2026 June 30 , 2025 For the three months ended June 30 , 2026 : ¥ 8,309 million [ 223.5 % ] For the three months ended June 30 , 2025 : ¥ 2,568 million [ ( 29.4 ) % ] Diluted earnings Basic earnings per share per share ( yen ) 294.99 116.23 ( yen ) ( 2 ) Consolidated financial position As of June 30 , 2026 March 31 , 2026 Total assets Net assets Equity - to - asset ratio ( millions of yen ) 212,503 227,771 ( millions of yen ) % 59.0 126,062 119,049 52.0 ( Reference ) Equity As of June 30 , 2026 : \ 125,358 million As of March 31 , 2026 : ¥ 118,461 million 2. Dividends First quarter- Second quarter- end end Annual dividends per share Third quarter - end Fiscal year- end Total ( yen ) Fiscal year ended March 31 , 2026 ( yen ) 50.00 ( yen ) ( yen ) 50.00 ( yen ) 100.00 Fiscal year ending March 31 , 2027 Fiscal year ending March 31 , 2027 60.00 60.00 120.00 ( Forecast ) ( Note ) Revisions to the forecast of cash dividends most recently announced : Yes For details on the revision , please refer to the “ Notice Concerning Revisions to Consolidated Earnings Forecasts and Dividends Forecasts " announced on August 7 , 2026 .
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3. Consolidated earnings forecasts for the fiscal year ending March 31, 2027 (April 1, 2026 – March 31, 2027) (Percentages are year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share (millions of yen) ％ (millions of yen) ％ (millions of yen) ％ (millions of yen) ％ (yen) Six months ending September 30, 2026 380,000 31.8 16,300 102.2 17,100 102.6 11,900 95.5 460.49 Full year 740,000 7.6 28,500 27.0 29,600 25.7 20,600 23.0 797.15 (Note) Revisions to the earnings forecast most recently announced: Yes For details on the revision, please refer to the “Notice Concerning Revisions to Consolidated Earnings Forecasts and Dividends Forecasts” announced on August 7, 2026. *Notes (1) Significant changes in the scope of consolidation during the period ： None (2) Application of accounting treatment specific to the preparation of quarterly consolidated financial statements ： None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations ： None (ii) Changes in accounting policies due to other reasons ： None (iii) Changes in accounting estimates ： None (iv) Restatement ： None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 26,908,581 shares As of March 31, 2026 26,908,581 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 1,066,703 shares As of March 31, 2026 1,066,675 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 25,841,893 shares Three months ended June 30, 2025 25,917,128 shares * Matsuda Sangyo introduced a stock-based compensation plan, "Executive Compensation BIP Trust." The number of treasury shares at the end of the period includes shares of the Company held by the Executive Compensation BIP Trust (75,200 shares for the Three months ended June 30, 2026; 75,200 shares for the fiscal year ended March 31, 2026). In addition, shares of the Company held by the Executive Compensation BIP Trust are included in the number of treasury shares deducted in the calculation of the average number of shares outstanding during the period. * Review of the Japanese -language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: None * Explanation of the proper use of earnings forecasts and other notes This document contains earnings projections and other information that constitute forward-looking statements. These statements are based on reasonable assumptions and information currently available to the Company and provide no guarantee of future performance. Actual results may differ materially from forward -looking statements due to a number of factors. For more information about earnings projections, please refer to “1. Qualitative information regarding the quarterly financial results , (3) Explanation of forward-looking statements such as consolidated forecasts” on page 3 of the attached documents.
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1 Contents of Attached Document 1. Qualitative information regarding the quarterly financial results....................................................................2 (1) Explanation of operating results ............................................................................................................... 2 (2) Explanation of financial position . .............................................................................................................3 (3) Explanation of forward-looking statements such as consolidated forecasts..............................................3 2. Quarterly consolidated financial statements and main notes..........................................................................4 (1) Quarterly consolidated balance sheet ....................................................................................................... 4 (2) Quarterly consolidated statement of income and comprehensive income ............................................... 6 (3) Quarterly consolidated statement of cash flows ....................................................................................... 8 (4) Notes on quarterly consolidated financial statements............................................................................... 9 (Notes on premise of a going concern)....................................................................................................... 9 (Notes on significant changes in the amount of shareholders’ equity)....................................................... 9 (Segment information, etc.)......................................................................................................................... 9 (Significant subsequent events)................................................................................................................... 9
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2 1. Qualitative information regarding the quarterly financial results (1) Explanation of operating results During the first three months of the fiscal year ending March 31, 2027, the Japanese economy experienced a moderate recovery, underpinned by improvements in the employment and income environment; however, the outlook remained uncertain amid heightened tensions in the Middle East and rising inflationary pressure. Against this backdrop, the Matsuda Sangyo Group’s Precious Metals Business Segment worked to develop and utilize production bases both domestically and overseas, ensure the stable supply of precious metal materials, and boost sales of products as well as expand its industrial waste treatment outsourcing business, based on a strategy of differentiating itself through its comprehensive resource recycling capability and the development of high - performance electronic materials. In the Food Business Segment, the Group made maximum use of its globally expanding procurement network to source products that meet diversifying customer needs and ensure stable supplies of safe and reliable food products, with the aim of increasing sales volumes. As a result of the above, for the first three months of the cumulative consolidated fiscal year under review, net sales were ¥208,650 million (up 42.3% year on year), operating profit was ¥10,315 million (up 175.6% year on year), ordinary profit was ¥10,938 million (up 176.1% year on year), and profit attributable to owners of parent was ¥7,623 million (up 153.1% year on year). The following is a summary of business by segment. Precious Metals Business Segment In the electronic devices field of the electronics sector, which is the key market for the Precious Metals Business Segment, demand for AI data centers continued to drive growth, while demand for automotive, industrial, and consumer equipment applications also followed a moderate recovery trend. Against this backdrop, although the volume of precious metals recycling handled decreased in the jewelry sector, it increased in the electronic devices sector, which, alongside factors such as the market price for precious metals remaining above the levels of the same quarter of the previous year, resulted in an increase in net sales and operating profit year on year. As a result of the above, net sales for this business were ¥177,718 million (up 53.8% year on year), and operating profit was ¥9,274 million (up 233.3% year on year). Food Business Segment In the food production sector, which is the key market for the Food Business Segment, continued to face challenging demand-side conditions, including a stronger trend toward frugality in personal consumption due to factors such as rising prices. Against this backdrop, sales volumes of seafood and livestock products decreased, resulting in a decrease in net sales compared with the same quarter of the previous year; however, an improvement in profit margin, driven by factors such as efforts to reflect costs in selling prices and enhancing added value, contributed to an increase in operating profit compared with the same quarter of the previous year. As a result of the above, net sales for this business were ¥30,941 million (down 0.5% year on year), and operating profit was ¥1,041 million (up 8.3% year on year). (2) Explanation of financial position (1) Status of assets, liabilities and net assets Assets: Total assets as of the end of the first quarter of the consolidated fiscal year under review were ¥212,503 million, a decrease of ¥15,267 million from the previous fiscal year end. This was mainly due to a decrease in inventories.
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3 Liabilities: Total liabilities as of the end of the first quarter of the consolidated fiscal year under review were ¥86,441 million, a decrease of ¥22,280 million from the previous fiscal year end. This mainly reflected decreases in accounts payable - trade, short-term loans payable, and advances received. Net assets: Net assets as of the end of the first quarter of the consolidated fiscal year under review were ¥126,062 million, an increase of ¥7,012 million from the previous fiscal year end. This was mainly due to an increase in retained earnings. (2) Cash flows status As of the end of the first quarter of the consolidated fiscal year under review, the balance of cash and cash equivalents (hereafter, “cash”) stood at ¥14,025 million, a decrease of ¥476 million from the previous fiscal year end. Cash flows for the first three months of the cumulative consolidated fiscal year under review and the factors affecting them are as follows. Cash flows from operating activities: Operating activities in the first three months of the cumulative consolidated fiscal year under review provided cash of ¥7,437 million. This mainly reflected the difference between an increase in cash from profit before income taxes and a decrease in inventories, and a decrease in cash from payments of trade payables and income taxes. Compared with the same quarter of the previous year, when operating activities provided cash of ¥181 million, cash from operating activities increased by ¥7,256 million. Cash flows from investing activities: Investing activities in the first three months of the cumulative consolidated fiscal year under review provided cash of ¥116 million. This mainly reflected the difference between a decrease in cash for the acquisition of property, plant and equipment, such as the new installation of factory equipment, and an increase in cash from the sale of investment securities and the withdrawal of time deposits. Compared with the same quarter of the previous year, when investing activities used cash of ¥1,596 million, cash used by investing activities decreased by ¥1,713 million. Cash flows from financing activities: Financing activities in the first three months of the cumulative consolidated fiscal year under review used cash of ¥8,083 million. This mainly reflected a decrease in cash from the repayment of short -term and long-term loans payable and the payment of cash dividends. Compared with the same quarter of the previous year , when financing activities provided cash of ¥1,299 million, cash from financing activities decreased by ¥9,382 million. (3) Explanation of forward-looking statements such as consolidated forecasts For details on the consolidated earnings forecast, please refer to the “Notice Concerning Revisions to Consolidated Earnings Forecasts and Dividends Forecasts” announced today (August 7, 2026).
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4 2. Quarterly consolidated financial statements and main notes (1) Quarterly consolidated balance sheet (millions of yen) End-FY3/26 (As of March 31, 2026) FY3/27 1Q (As of June 30, 2026) Assets Current assets Cash and deposits 14,564 14,025 Notes and accounts receivable – trade 48,762 47,493 Merchandise and finished goods 45,252 41,955 Work in process 875 1,257 Raw materials and supplies 46,145 32,907 Accounts receivable – other 2,881 4,266 Others 12,239 12,992 Allowance for doubtful accounts (17) (3) Total current assets 170,704 154,894 Non-current assets Property, plant, and equipment Buildings and structures 22,785 22,791 Accumulated depreciation (8,968) (9,103) Buildings and structures, net 13,816 13,688 Machinery, equipment, and vehicles 22,110 22,517 Accumulated depreciation (16,858) (17,220) Machinery, equipment, and vehicles, net 5,251 5,297 Land 16,944 16,955 Leased assets 1,605 1,616 Accumulated depreciation (1,028) (1,084) Leased assets, net 577 531 Construction in progress 3,823 3,324 Others 1,894 1,920 Accumulated depreciation (1,542) (1,558) Others, net 351 362 Total property, plant, and equipment 40,765 40,158 Intangible assets Others 3,005 2,879 Total intangible assets 3,005 2,879 Investments and other assets Investment securities 9,792 11,192 Deferred tax assets 425 322 Others 3,165 3,148 Accumulated depreciation (69) (74) Others, net 3,095 3,074 Allowance for doubtful accounts (18) (18) Total investments and other assets 13,295 14,570 Total non-current assets 57,067 57,609 Total assets 227,771 212,503
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5 (millions of yen) End-FY3/26 (As of March 31, 2026) FY3/27 1Q (As of June 30, 2026) Liabilities Current liabilities Accounts payable – trade 26,011 21,536 Short-term loans payable 25,797 20,388 Current portion of long-term loans payable 5,171 4,999 Lease obligations 241 236 Income taxes payable 5,156 3,041 Provision for bonuses 2,003 988 Accounts payable – other 1,333 1,145 Advances received 15,218 6,660 Others 3,064 3,285 Total current liabilities 83,998 62,282 Non-current liabilities Bonds payable 100 100 Long-term loans payable 20,803 19,636 Lease obligations 351 309 Deferred tax liabilities 1,500 2,178 Provision for share awards for directors 40 53 Net defined benefit liability 682 663 Others 1,245 1,217 Total non-current liabilities 24,723 24,158 Total liabilities 108,721 86,441 Net assets Shareholders’ equity Common stock 3,559 3,559 Capital surplus 4,008 4,008 Retained earnings 103,986 110,313 Treasury shares (1,688) (1,688) Total shareholders’ equity 109,866 116,193 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,338 1,943 Deferred gains or losses on hedges 2,112 1,878 Foreign currency translation adjustment 4,514 4,743 Remeasurements of defined benefit plans 630 599 Total accumulated other comprehensive income 8,595 9,165 Non-controlling interests 587 704 Total net assets 119,049 126,062 Total liabilities and net assets 227,771 212,503
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6 (2) Quarterly consolidated statement of income and comprehensive income Quarterly consolidated statement of income for the cumulative first quarter (millions of yen) FY3/26 1Q (April 1, 2025 – June 30, 2025) FY3/27 1Q (April 1, 2026 – June 30, 2026) Net sales 146,627 208,650 Cost of sales 136,460 191,614 Gross profit 10,167 17,035 Selling, general and administrative expenses 6,424 6,719 Operating profit 3,743 10,315 Non-operating income Interest income 3 3 Dividend income 16 16 Share of profit of entities accounted for using equity method 285 579 Foreign exchange gains ― 140 Others 93 96 Total non-operating income 399 836 Non-operating expenses Interest expenses 113 181 Foreign exchange losses 50 ― Others 17 33 Total non-operating expenses 180 214 Ordinary profit 3,962 10,938 Extraordinary income Gain on sale of investment securities ― 203 Total extraordinary income ― 203 Profit before income taxes 3,962 11,141 Income taxes – current 913 2,793 Income taxes – deferred (24) 622 Total income taxes 888 3,416 Profit 3,074 7,725 Profit attributable to non-controlling interests 61 101 Profit attributable to owners of parent 3,012 7,623
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7 Quarterly consolidated statement of comprehensive income for the cumulative first quarter (millions of yen) FY3/26 1Q (April 1, 2025 – June 30, 2025) FY3/27 1Q (April 1, 2026 – June 30, 2026) Profit 3,074 7,725 Other comprehensive income Valuation difference on available-for-sale securities 37 605 Deferred gains or losses on hedges 50 (213) Foreign currency translation adjustment (543) 186 Remeasurements of defined benefit plans (6) (31) Share of other comprehensive income of entities accounted for using equity method (42) 35 Total other comprehensive income (505) 583 Comprehensive income 2,568 8,309 Comprehensive income attributable to: Comprehensive income attributable to owners of parent 2,531 8,192 Comprehensive income attributable to non-controlling interests 37 116
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8 (3) Quarterly consolidated statement of cash flows (millions of yen) FY3/26 1Q (April 1, 2025 – June 30, 2025) FY3/27 1Q (April 1, 2026 – June 30, 2026) Cash flows from operating activities Profit before income taxes 3,962 11,141 Depreciation 843 947 Increase (decrease) in allowance for doubtful accounts (5) (13) Increase (decrease) in provision for bonuses (453) (1,014) Increase (decrease) in net defined benefit liability (27) (65) Increase (decrease) in provision for directors’ retirement benefits 10 ― Increase (decrease) in provision for executive officers’ retirement benefits 1 ― Increase (decrease) in provision for share awards for directors ― 13 Interest and dividend income (20) (20) Interest expenses 113 181 Loss (gain) on sale of investment securities ― (203) Share of (profit) loss of entities accounted for using equity method (285) (579) Decrease (increase) in notes and accounts receivable – trade (3,701) 1,281 Decrease (increase) in notes and accounts receivable – other (505) (1,384) Decrease (increase) in inventories (705) 16,187 Increase (decrease) in accounts payable – trade 958 (4,505) Increase (decrease) in accounts payable – other 557 (19) Others 2,068 (9,666) Subtotal 2,809 12,279 Interest and dividend income received 20 20 Interest paid (73) (146) Income taxes paid (2,575) (4,716) Net cash provided by (used in) operating activities 181 7,437 Cash flows from investing activities Proceeds from withdrawal of time deposits ― 52 Purchase of property, plant and equipment (1,436) (256) Proceeds from sale of investment securities 43 303 Others (203) 17 Net cash provided by (used in) investing activities (1,596) 116 Cash flows from financing activities Net increase (decrease) in short-term loans payable 3,550 (5,398) Repayments of long-term loans payable (1,158) (1,339) Cash dividends paid (1,036) (1,295) Others (55) (49) Net cash provided by (used in) financing activities 1,299 (8,083) Effect of exchange rate change on cash and cash equivalents (319) 53 Net increase (decrease) in cash and cash equivalents (435) (476) Cash and cash equivalents at beginning of period 11,428 14,501 Cash and cash equivalents at end of period 10,993 14,025
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9 (4) Notes on quarterly consolidated financial statements (Notes on premise of a going concern) There are no applicable items. (Notes on significant changes in the amount of shareholders’ equity) There are no applicable items. (Segment information, etc.) I. For the three months ended June 30, 2025 (April 1, 2025 – June 30, 2025) Information for net sales and profit/loss for each reportable segment (millions of yen) Reportable Segments Adjustment (Note) 1 Amount recorded on consolidated statements of income (Note) 2 Precious Metals Business Segment Food Business Segment Total Net sales Net sales to external parties 115,526 31,101 146,627 ― 146,627 Net sales & remittances between segments ― 10 10 (10) ― Total 115,526 31,112 146,638 (10) 146,627 Segment profit 2,782 961 3,743 ― 3,743 (Notes) 1. Adjustments correspond to the elimination of transactions and remittances between segments. 2. Total segment profit matches operating profit recorded on the consolidated statements of income. II. For the three months ended June 30, 2026 (April 1, 2026 – June 30, 2026) Information for net sales and profit/loss for each reportable segment (millions of yen) Reportable Segments Adjustment (Note) 1 Amount recorded on consolidated statements of income (Note) 2 Precious Metals Business Segment Food Business Segment Total Net sales Net sales to external parties 177,718 30,931 208,650 ― 208,650 Net sales & remittances between segments ― 10 10 (10) ― Total 177,718 30,941 208,660 (10) 208,650 Segment profit 9,274 1,041 10,315 ― 10,315 (Notes) 1. Adjustments correspond to the elimination of transactions and remittances between segments. 2. Total segment profit matches operating profit recorded on the consolidated statements of income. (Significant subsequent events) There are no applicable items.