Interim report
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- 1 - Consolidated Financial Results for the Three-Month Period Ended June 30, 2026 (Based on Japanese GAAP) August 4, 2026 Company name MUSASHI CO., LTD. Stock exchange listings: Tokyo Standard Securities code 7521 URL https://www.musashinet.co.jp Representative Representative Director President Koichi Ono Inquiries General Manager of Financial Department Yoshiaki Yamamoto Tel 03-3546-7710 Scheduled date to commence dividend payment - Supplemental material of results： None Convening briefing of results ： None (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Profit for the period Profit attributable to owners of parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, 2026 7,390 (25.9) 5 (99.5) 76 (93.6) (32) - June 30, 2025 9,966 27.9 1,187 299.7 1,184 287.8 785 337.3 Note: Comprehensive income For the three months ended June 30, 2026 380 Millions of yen (53.0%) For the three months ended June 30, 2025 809 Millions of yen 185.6% Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30, 2026 (4.83) － June 30, 2025 115.30 － (2) Consolidated financial position Total assets Net assets Shareholders’ equity ratio to total assets As of Millions of yen Millions of yen % June 30, 2026 50,163 36,993 73.7 March 31, 2026 52,849 36,939 69.9 Reference: Shareholders’ equity As of June 30, 2026 36,993 Millions of yen As of March 31, 2026 33,939 Millions of yen 2. Cash dividends Annual dividend First quarter Second quarter Third quarter Year end Annual Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 － 28.00 － 48.00 76.00 Fiscal year ending March 31, 2027 － Fiscal year ending March 31, 2027 (Forecast) 18.00 － 18.00 36.00 Note: Revisions to the forecast of cash dividends most recently announced： No 3. Consolidated financial forecast for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027)
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- 2 - (Percentages indicate 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 16,065 (19.4) 27 (98.9) 85 (96.4) 22 (98.3) 3.23 Fiscal year ending March 31, 2027 33,959 (16.3) 596 (87.3) 732 (84.5) 391 (86.1) 57.38 Note: Revisions to the earnings forecasts most recently announced： None * Notes (1) Significant changes in the scope of consolidation during the period： None (2) Adoption 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) ① Number of issued and outstanding shares at the period end (including treasury stock) As of June 30, 2026 7,950,000 shares As of March 31, 2026 7,950,000 shares ② Number of treasury stock at the period end As of June 30, 2026 1,135,786 shares As of March 31, 2026 1,135,745 shares ③ Average number of shares Three months ended June 30, 2026 6,814,214 shares Three months ended June 30, 2025 6,814,352 shares * Review of the quarterly consolidated financial statements by certified public accountants or audit firms: None * Proper use of earnings forecasts, and other special matters The forward-looking statements, including earnings forecasts, contained in this document are based on information currently available to the Company and on certain assumptions deemed reasonable. These statements are not guarantees of future performance. Actual results may differ materially from those expressed in forward-looking statements due to a variety of factors. For the assumptions underlying the forecasts and notes on the use of the forecasts, please refer to "1. Overview of Operating Results, etc. (3) “Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements" on page 5 of the attached document.
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- 3 - ○Table of Contents of the Appendix 1. Overview of Operating Results, etc. ………………………………………………………………………………………… 4 (1) Overview of Operating Results for the Three-month Period Under Review ……………………………………………… 4 (2) Overview of Financial Position for the Three-month Period Under Review ……………………………………………… 4 (3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements ……………………………… 5 2. Quarterly Consolidated Financial Statements and Significant Notes ……………………………………………………… 6 (1) Quarterly Consolidated Balance Sheets …………………………………………………………………………………… 6 (2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income …… 7 Quarterly Consolidated Statement of Income ……………………………………………………………………………… 7 Quarterly Consolidated Statement of Comprehensive Income …………………………………………………………… 8 (3) Notes on Quarterly Consolidated Financial Statements…………………………………………………………………… 9 (Notes on Segment Information) …………………………………………………………………………………………… 9 (Notes on Significant Changes in the Amount of Shareholders' Equity) …………………………………………………… 10 (Notes on Going Concern Assumption) ……………………………………………………………………………………… 10 (Notes on Quality Consolidated Cash Flow Statement) …………………………………………………………………… 10
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- 4 - 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Three-month Period Under Review During the first-quarter consolidated period, the Japanese economy continued to show a modest recovery trend, supported by improvements in the employment and income environment and steady capital expenditure. However, the outlook remains uncertain, affected by renewed instability in the Middle East, the prolonged situation in Ukraine, continued yen depreciation driving up raw material and energy costs, as well as the impact of domestic inflation and interest rate trends. Under these circumstances, the overview of each of the Group's business segments is as follows. (Information systems, Printing systems and Industrial systems equipment) The Information and Industrial Systems equipment segment posted solid results, driven by increased sales of commercial filtration filters, electronic equipment such as scanners, and industrial inspection equipment that captured demand from inspection-related work. However, the document digitization business saw a decline in orders from government agencies and local municipalities. Sales of printing equipment, such as POD devices and direct-to-package printers, remained sluggish; however, sales of printing supplies generally trended favorably. (Cash handling equipment and Election systems equipment) Cash handling equipment sales progressed steadily for centralized processing system equipment targeting financial institutions. Additionally, sales of cash-handling equipment for financial institutions and the circulation market generally progressed favorably. Sales of election system equipment, including ballot paper dispensers, ballot paper reading and sorting machines, and voting/vote-counting systems, remained steady for local elections nationwide. Additionally, sales of election operations management software to comply with the standardization of municipal information systems also remained steady. (Paper and processed paper products) Paper and paper-processed products saw steady progress in sales of paperboard for pharmaceutical and cosmetic packaging, etc. Sales of printing paper and information paper also generally progressed steadily. (Leasing and others) Real estate leasing and leasing businesses, etc., progressed steadily. As a result, the consolidated business performance for the first quarter of this consolidated accounting period was net sales of 7,390 million yen (down 25.9% year-on-year), operating profit of 5 million yen (down 99.5% year-on-year), ordinary profit of 76 million yen (down 93.6% year-on-year), and loss attributable to owners of parent of 32 million yen (compared to 785 million yen in the same period of the previous year). (2) Overview of the Financial Position for the Nine-month Period Under Review (Current Assets) At the end of the first quarter of this consolidated accounting period, current assets totaled 33,600 million yen, a decrease of 3,263 million yen from the end of the previous consolidated accounting period. The main factor for the decrease is the reduction in notes, accounts receivable, and contrast assets (3,398 million yen), and the main factor for the increase was the increase in inventory (180 million yen). (Non-current assets) At the end of the first quarter of this consolidated accounting period, the balance of fixed assets was 16,562 million yen, an increase of 577 million yen from the end of the previous consolidated accounting period. The main factors for the increase were the increase in investment securities due to the raise in stock prices (633 million yen), and main factor for the decrease was a decrease in property, plant and equipment (62 million yen).
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- 5 - (Current Liabilities) At the end of the first quarter of this consolidated fiscal period, current liabilities totaled 9,637 million yen, a decrease of 3,011 million yen from the end of the previous consolidated fiscal year. The main factors for the decrease were a decrease in notes and accounts payable (922 million yen), a decrease in electronically recorded obligations (453 million yen), a decrease in accrued corporate taxes, etc. (1,077 million yen), and a decrease in “other” current liabilities (266 million yen). (Non-current liabilities) At the end of the first quarter of this consolidated accounting period, the balance of non-current liabilities was 3,532 million yen, an increase of 271 million yen from the end of the previous consolidated accounting period. The main factor for the increase was the increase in "other" non-current liabilities (243 million yen). (Net Assets) At the end of the first quarter of this consolidated fiscal period, total net assets stood at 36,993 million yen, an increase of 53 million yen from the end of the previous consolidated fiscal year. The factors contributing to the increase was the increase in other comprehensive income (413 million yen). The factors contributing to the decrease were a net loss attributable to owners of parent (32 million yen), dividends from retained earnings (327 million yen). As a result, the equity ratio was 73.7% (69.9% at the end of the previous consolidated fiscal year). (3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements Regarding the consolidated earnings forecast, there is no change to the consolidated cumulative second quarter and the full- year earnings forecast announced in the "Consolidated Financial Results for the Year Ended March 31, 2026" dated May 15, 2026. If it is determined that a revision of the earnings forecast is necessary, we will promptly disclose such information. The above forecasts are based on information available as of the date of this release, and actual results may differ from the forecasts due to various factors in the future.
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- 6 - 2. Quarterly Consolidated Financial Statements and Significant Notes (1) Consolidated Balance Sheets (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 23,567 23,388 Notes and accounts receivable, and contrast assets 7,522 4,124 Electronically recorded monetary claims - operating 2,179 2,126 Merchandise and finished goods 2,142 2,497 Work in process 69 30 Raw materials and supplies 980 843 Other 419 600 Allowance for doubtful accounts (16) (11) Total current assets 36,864 33,600 Non-current assets Property, plant and equipment 3,798 3,736 Intangible assets 488 545 Investments and other assets 11,698 12,281 Total non-current assets 15,985 16,562 Total assets 52,849 50,163 Liabilities Current liabilities Notes and accounts payable - trade 4,226 3,304 Electronically recorded obligations - operating 2,023 1,570 Short-term borrowings 3,516 3,516 Income taxes payable 1,115 38 Provision for bonuses 426 272 Asset retirement obligations 145 6 Other 1,194 928 Total current liabilities 12,649 9,637 Non-current liabilities Retirement benefit liability 217 216 Provision for retirement benefits for directors (and other officers) 1,121 1,151 Other 1,921 2,164 Total non-current liabilities 3,260 3,532 Total liabilities 15,910 13,170 Net assets Shareholders' equity Share capital 1,208 1,208 Capital surplus 2,005 2,005 Retained earnings 32,842 32,482 Treasury shares (1,854) (1,854) Total shareholders' equity 34,201 33,841 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,917 2,355 Remeasurements of defined benefit plans 821 796 Total accumulated other comprehensive income 2,738 3,152 Total net assets 36,939 36,993 Total liabilities and net assets 52,849 50,163
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- 7 - (2) Consolidated Statements of Income (Cumulative) and Consolidated Statements of Comprehensive Income (Cumulative) Consolidated Statements of Income (Cumulative) (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 9,966 7,390 Cost of sales 7,068 5,693 Gross profit 2,898 1,696 Selling, general and administrative expenses 1,710 1,691 Operating profit 1,187 5 Non-operating income Interest income 12 31 Dividend income 20 43 Reversal of allowance for doubtful accounts 0 0 Other 11 19 Total non-operating income 43 94 Non-operating expenses Interest expenses 13 16 Share of loss of entities accounted for using equity method 33 6 Other 0 0 Total non-operating expenses 47 23 Ordinary profit 1,184 76 Profit before income taxes 1,184 76 Income taxes - current 328 36 Income taxes - deferred 70 72 Total income taxes 398 109 Profit (Loss) 785 (32) Profit attributable to owners of parent (Loss attributable to owners of parent) 785 (32)
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- 8 - Consolidated Statements of Comprehensive Income (Cumulative) (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit (Loss) 785 (32) Other comprehensive income Valuation difference on available-for-sale securities 31 437 Remeasurements of defined benefit plans, net of tax (7) (24) Share of other comprehensive income of entities accounted for using equity method 0 0 Total other comprehensive income 23 413 Comprehensive income 809 380 Comprehensive income attributable to Comprehensive income attributable to owners of parent 809 380
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- 9 - (3) Notes on Quarterly Consolidated Financial Statements (Notes on Segment Information) [Segment information] I Previous quarterly consolidated accounting period (from April 1, 2025 to June 30, 2025) 1. Information on net sales and profit or loss amounts by reportable segment, as well as breakdown information of revenue (Millions of yen) Reportable segments Reconciling items (note1) Amounts recorded in quarterly consolidated financial statements (note2) Information systems, Printing systems and Industrial systems equipment Cash handling equipment, Election systems equipment Paper and processed paper products Leasing and others Reportable segments Sales Goods or services transferred at a single point in time 3,982 3,437 2,134 － 9,554 － 9,554 Goods or services transferred over a certain period 251 84 － － 335 － 335 Income arising from contracts with customers 4,234 3,521 2,134 － 9,890 － 9,890 Other income － － － 76 76 － 76 Revenues from external customers 4,234 3,521 2,134 76 9,966 － 9,966 Transactions with other segments 5 0 － 84 90 (90) － Net sales 4,239 3,522 2,134 160 10,057 (90) 9,966 Operating profit (loss) 111 991 27 56 1,187 0 1,187 (note) 1. Elimination of intersegment transactions 2. The total amount of segment profit figure is reconciled with operating profit in the quarterly consolidated statement of income. 2. Information about impairment loss of non-current assets or goodwill, etc. for each reportable segment Not applicable
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- 10 - Ⅱ During the Quarterly Consolidated Accounting Period (from April 1, 2026 to June 30, 2026) 1. Information on sales and profit or loss amounts by reportable segment, as well as breakdown information of revenue (Millions of yen) Reportable segments Reconciling items (note1) Amounts recorded in quarterly consolidated financial statements (note2) Information systems, Printing systems and Industrial systems equipment Cash handling equipment, Election systems equipment Paper and processed paper products Leasing and others Reportable segments Sales Goods or services transferred at a single point in time 3,867 1,017 2,162 － 7,048 － 7,048 Goods or services transferred over a certain period 170 97 － － 267 － 267 Income arising from contracts with customers 4,038 1,114 2,162 － 7,316 － 7,316 Other income － － － 74 74 － 74 Revenues from external customers 4,038 1,114 2,162 74 7,390 － 7,390 Transactions with other segments 4 － － 90 95 (95) － Net sales 4,042 1,114 2,162 164 7,485 (95) 7,390 Operating profit (loss) (53) (42) 49 50 5 0 5 (note) 1. Elimination of intersegment transactions 2. The total amount of segment profit figure is reconciled with operating profit in the quarterly consolidated statement of income. 2. Information about impairment loss of non-current assets or goodwill, etc. for each reportable segment Not applicable (Notes on significant fluctuations in the amount of shareholders' equity) Not applicable (Notes on going concern assumption) Not applicable (Notes on Quality Consolidated Cash Flow Statement) We have not prepared the quarterly consolidated cash flow statement for the first quarter cumulative period. The depreciation and amortization expenses (including amortization of intangible assets other than goodwill) for the first quarter cumulative period are as follows. (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation 95 93