Interim report
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TOKYO KEIKI INC . ( 7721 ) Consolidated Financial Results for the Three Months Ended June 30 , 2026 Note : 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 shall prevail . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) FASF MEMBERSHIP August 10 , 2026 TOKYO KEIKI INC . Tokyo Stock Exchange https://www.tokyokeiki.jp/ Company name : Listing : Securities code : 7721 URL : Representative : Inquiries : Telephone : Tsuyoshi ANDO , Representative Director , President & CEO ( Chief Executive Officer ) Yoshinori SHINO , Executive Officer , Chief of Accounting Supervisory Dept. + 81-3-3732-2111 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : Yes None ( Yen amounts are rounded off 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 . ) Profit attributable to Net sales Operating profit Ordinary profit owners of parent Three months ended Millions of yen % June 30 , 2026 11,594 June 30 , 2025 10,548 9.9 21.3 Millions of yen ( 248 ) ( 326 ) % Millions of yen ( 53 ) % Millions of yen % 31 ( 297 ) ( 177 ) Note : Comprehensive income For the Three months ended June 30 , 2026 : For the Three months ended June 30 , 2025 : ¥ 359 million ¥ ( 249 ) million [ - % ] [ - % ] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30 , 2026 1.90 June 30 , 2025 ( 10.75 ) ( 2 ) Consolidated financial position Total assets Net assets Equity - to - asset ratio Net assets per share As of June 30 , 2026 March 31 , 2026 Millions of yen 81,690 84,781 Millions of yen % Yen 45,840 55.4 46,155 53.7 2,753.97 2,770.05 Reference : Equity As of June 30 , 2026 : As of March 31 , 2026 : ¥ 45,256 million ¥ 45,520 million
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 － － － 40.00 40.00 Fiscal year ending March 31, 2027 － Fiscal year ending March 31, 2027 (Forecast) － － 48.00 48.00 Note: Revisions to the forecast of cash dividends most recently announced: None 3. Consolidated financial results forecasts for the fiscal year ending March 31, 2026 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Net income per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 70,000 14.4 7,000 30.6 7,070 28.7 5,400 34.8 328.61 Note: Revisions to the forecast of financial results most recently announced: Yes
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 * 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: Yes (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 17,076,439 shares As of March 31, 2026 17,076,439 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 643,578 shares As of March 31, 2026 643,453 shares (iii) Average number of shares outstanding during the period Three months ended June 30, 2026 16,432,944 shares Three months ended June 30, 2025 16,429,258 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Proper use of earnings forecasts, and other special matters (Caution regarding forward-looking statements and others) The forecasts given in this document are based on the current information available to TOKYO KEIKI INC. (hereafter “the company”). Consequently, the company does not commit to achieve these forecasting numbers. Actual results may differ from these forecasts due to various factors. (Means of access to supplementary material on financial results) The materials such as the financial results briefing has been disclosed on TDnet on the same day and posted on the company’s website.
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 1 Contents of Attached Materials 1. Overview of Operating Results, etc. ................................................................................................................ 2 (1) Overview of operating results for the three months ended June 30, 2026 ....................................................... 2 (2) Overview of financial position as of June 30, 2026......................................................................................... 5 (3) Explanation of consolidated financial results forecasts and other forward-looking information .................... 6 2. Quarterly Consolidated Financial Statements and Major Notes ...................................................................... 7 (1) Quarterly consolidated balance sheets ............................................................................................................. 7 (2) Quarterly consolidated statements of income and Quarterly consolidated statements of comprehensive income ......................................................................... 9 (3) Notes to quarterly consolidated financial statements..................................................................................... 11 Accounting treatment specific to the preparation of quarterly consolidated financial statements ................. 11 Segment information, etc. .............................................................................................................................. 12 Significant changes in shareholders’ equity ................................................................................................... 14 Going concern assumption ............................................................................................................................ 14 Quarterly consolidated statement of cash flows ............................................................................................ 14 3. Other .............................................................................................................................................................. 15 Status of orders received ................................................................................................................................ 15
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 2 1. Overview of Operating Results, etc. (1) Overview of operating results for the three months ended June 30, 2026 During the three months ended June 30, 2026 (hereinafter the “period under review”), the Japanese economy continued on a moderate recovery trend, supported by improvements in employment and income conditions and demand for capital investment. However, the outlook remained uncertain due to persistently high raw material and energy prices resulting from the destabilization of the situation in the Middle East. Despite this business environment, financial results for the period under review showed an increase in net sales and an improvement in operating loss year on year. This was attributable to strong demand for equipment for newly built vessels in Japan and overseas in the Marine Systems Business, as well as continued strong sales of avionics equipment and shipboard equipment in the Defense & Communications Equipment Business. In addition, profit attributable to owners of the parent turned positive due to an increase in non-operating income, including subsidy income, and gains on sales of investment securities resulting from the reduction of cross- shareholdings. The financial results for the period under review were as follows. (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 YoY change Amount % Net sales 10,548 11,594 +1,046 +9.9 Operating profit (loss) (326) (248) +78 - Ordinary profit (loss) (297) (53) +244 - Profit (loss) attributable to owners of parent (177) 31 +208 - The results by segment were as follows. Marine Systems Business (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 YoY change Amount % Net sales 3,140 3,657 +517 +16.5 Operating profit 307 390 +83 +27.2 Net sales Net sales increased year on year, reflecting robust demand for equipment for newly built vessels in Japan and overseas, as well as continued high demand for maintenance services. Operating profit Operating profit increased year on year due to higher net sales and the yen's depreciation.
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 3 Hydraulics and Pneumatics Business (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 YoY change Amount % Net sales 2,653 2,813 +160 +6.0 Operating profit (loss) (116) 39 +155 - Net sales Net sales increased year on year due to higher sales in Asian markets. Operating profit Operating profit increased year on year, mainly due to an improved cost ratio resulting from increased sales of high-value-added products and appropriate pricing. Fluid Measurement Equipment Business (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 YoY change Amount % Net sales 830 725 -105 -12.6 Operating profit (loss) (146) (218) -72 - Net sales Although the public-sector market remained solid, net sales decreased year on year because there were no large-scale projects in the fire extinguishing equipment market, unlike in the same period of the previous year. Operating profit Operating loss increased year on year due to a decrease in net sales. The segment tends to post operating loss in Q1 as sales are usually concentrated in Q4 due to the nature of the business.
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 4 Defense & Communications Equipment Business (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 YoY change Amount % Net sales 3,327 3,978 +651 +19.6 Operating profit (loss) (254) (121) +133 - Net sales Net sales increased year on year, owing to continued high-level sales of avionics equipment and shipboard equipment in the Defense Business, as well as the carryover from the previous fiscal year of deliveries of satellite communications antenna stabilizers in the Communications Equipment Business. Operating profit Operating loss decreased year on year due to the increase in net sales. The segment tends to post operating loss in Q1 as sales are usually concentrated in Q4 due to the nature of the business. Others (Inspection Systems Business, Railway Maintenance Business, etc.) (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 YoY change Amount % Net sales 598 420 -178 -29.7 Operating profit (loss) (99) (303) -204 - Net sales Net sales decreased year on year due to sluggish performance in the Inspection Systems Business. Operating profit Operating loss increased year on year due to a decrease in net sales.
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 5 (2) Overview of financial position as of June 30, 2026 (Millions of yen) As of March 31, 2026 As of June 30, 2026 Change Total assets 84,781 81,690 -3,091 Total liabilities 38,625 35,850 -2,775 Total net assets 46,155 45,840 -315 Equity-to-asset ratio 53.7% 55.4% +1.7pt Assets Assets decreased by ¥3,091 million from the end of the previous fiscal year to ¥81,690 million, as collections of accounts receivable-trade and contract assets progressed significantly, despite increases in raw materials and supplies and work in process accompanying higher orders. Liabilities Liabilities decreased by ¥2,775 million from the end of the previous fiscal year to ¥35,850 million due to repayment of borrowings, payment of bonuses, and a decrease in accounts payable included in “Other” under current liabilities. Net assets Net assets decreased by ¥315 million from the end of the previous fiscal year to ¥45,840 million mainly due to dividend payments, despite an increase in the valuation difference on available-for-sale securities resulting from rising stock prices. The equity-to-asset ratio increased by 1.7 percentage points from the end of the previous fiscal year to 55.4% as a result of the decrease in total capital due to the decrease in liabilities, despite the decrease in net assets. Thus, the company continues to maintain a sound financial foundation.
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 6 (3) Explanation of consolidated financial results forecasts and other forward-looking information With respect to the consolidated earnings forecast for the fiscal year ending March 2027, we have revised our consolidated earnings forecast as follows, as results are now expected to exceed the previously announced forecast released on May 11. This is due to factors including: deliveries of satellite communications antenna stabilizers in the Communications Equipment Business that were deferred from the previous fiscal year in the Defense and Communications Equipment Business; strong sales of components for avionics equipment, supported by an increase in the defense budget; strong sales for newly built vessels in the Marine Systems Business; and the expected positive impact of the weaker yen. Revisions to the consolidated financial results forecasts for the fiscal year ending March 2027 (from April 1, 2026 to March 31, 2027) Net sales Operating profit Ordinary profit (loss) Profit (loss) attributable to owners of parent Net income per share Previously announced forecast (A) Millions of yen 68,300 Millions of yen 6,400 Millions of yen 6,510 Millions of yen 5,000 Yen 304.27 Revised forecast (B) 70,000 7,000 7,070 5,400 328.61 Change (B - A) 1,700 600 560 400 - Change (%) 2.5 9.4 8.6 8.0 - (Reference) Results from the previous fiscal year (Fiscal year ended March 31, 2026) 61,186 5,362 5,492 4,005 243.75 The above forecasts are based on information currently available and are not intended as a guarantee of future performance. Actual results may differ materially from these forecasts due to various factors.
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 7 2. Quarterly Consolidated Financial Statements and Major Notes (1) Quarterly consolidated balance sheets (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current Assets Cash and deposits 4,022 3,789 Notes and accounts receivable - trade, and contract assets 19,896 13,405 Electronically recorded monetary claims - operating 3,899 3,982 Merchandise and finished goods 2,551 2,683 Work in process 15,508 18,426 Raw materials and supplies 9,133 9,595 Accounts receivable - other 1,435 622 Other 1,136 884 Allowance for doubtful accounts (1) (2) Total current assets 57,578 53,385 Non-current assets Property, plant and equipment 12,950 13,367 Intangible assets 425 468 Investments and other assets Other 13,882 14,525 Allowance for doubtful accounts (54) (54) Total investments and other assets 13,827 14,470 Total non-current assets 27,203 28,305 Total assets 84,781 81,690 Liabilities Current liabilities Notes and accounts payable - trade 6,202 5,535 Short-term borrowings 13,495 13,711 Provision for bonuses 1,550 827 Provision for shareholder benefit program 75 52 Asset retirement obligations 75 76 Other 5,576 4,752 Total current liabilities 26,973 24,952 Non-current liabilities Long-term borrowings 8,291 7,159 Provision for retirement benefits for directors (and other officers) 43 34 Asset retirement obligations 789 1,152 Retirement benefit liability 616 650 Other 1,913 1,904 Total non-current liabilities 11,652 10,898 Total liabilities 38,625 35,850
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 8 (Millions of yen) As of March 31, 2026 As of June 30, 2026 Net assets Shareholders’ equity Share capital 7,218 7,218 Capital surplus 45 50 Retained earnings 33,010 32,384 Treasury shares (648) (648) Total shareholders’ equity 39,626 39,003 Accumulated other comprehensive income Valuation difference on available-for-sale securities 2,430 2,948 Foreign currency translation adjustment 376 375 Remeasurements of defined benefit plans 3,089 2,930 Total accumulated other comprehensive income 5,895 6,253 Non-controlling interests 635 584 Total net assets 46,155 45,840 Total liabilities and net assets 84,781 81,690
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 9 (2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income Quarterly consolidated statements of income Three months ended June 30, 2026 (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 10,548 11,594 Cost of sales 8,045 8,775 Gross profit 2,503 2,818 Selling, general and administrative expenses 2,829 3,067 Operating loss (326) (248) Non-operating income Interest income 0 0 Dividend income 76 85 Share of profit of entities accounted for using equity method 1 24 Subsidy income 0 125 Foreign exchange gains - 3 Other 16 18 Total non-operating income 93 255 Non-operating expenses Interest expenses 49 49 Foreign exchange losses 10 - Rental expenses on facilities 4 4 Other 2 6 Total non-operating expenses 64 60 Ordinary loss (297) (53) Extraordinary income Gain on sale of non-current assets 1 0 Gains on sale of investment securities - 100 Total extraordinary income 1 100 Extraordinary losses Loss on sale and retirement of non-current assets 0 0 Head office relocation expenses 2 - Total extraordinary losses 2 0 Profit (loss) before income taxes (298) 47 Income taxes (92) 46 Profit (loss) (205) 1 Loss attributable to non-controlling interests (29) (30) Profit (loss) attributable to owners of parent (177) 31
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 10 Quarterly consolidated statements of comprehensive income Three months ended June 30, 2026 (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit (loss) (205) 1 Other comprehensive income Valuation difference on available-for-sale securities 126 518 Foreign currency translation adjustment (101) (6) Remeasurements of defined benefit plans, net of tax (68) (159) Share of other comprehensive income of entities accounted for using equity method (1) 4 Total other comprehensive income (44) 358 Comprehensive income (249) 359 Comprehensive income attributable to Comprehensive income attributable to owners of parent (220) 389 Comprehensive income attributable to non-controlling interests (29) (30)
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 11 (3) Notes to quarterly consolidated financial statements Accounting treatment specific to the preparation of quarterly consolidated financial statements Calculation of tax expenses Tax expenses are calculated by reasonably estimating the effective tax rate using tax effect accounting on profit before income taxes for the consolidated fiscal year including the three months ended June 30, 2026, and multiplying the estimated effective tax rate by profit before income taxes. However, if calculating tax expenses using the estimated effective tax rate would result in a significantly unreasonable outcome, the statutory effective tax rate is used instead. Income tax adjustments are included in income taxes.
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 12 Segment information, etc. 1. Three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) Information on amounts of net sales and profit or loss by reportable segment and information on disaggregation of revenue (Millions of yen) Reportable segments Others (Note 1) Total Adjustments (Note 2) Amounts shown on quarterly consolidated statement of income (Note 3) Marine Systems Hydraulics and Pneumatics Fluid Measurement Equipment Defense & Communications Equipment Total Net sales Domestic 1,169 2,310 786 3,323 7,588 439 8,026 0 8,026 Overseas 1,971 343 44 4 2,363 151 2,514 - 2,514 Revenue from contracts with customers 3,140 2,653 830 3,327 9,950 590 10,540 0 10,540 Other revenue - - - - - 8 8 - 8 Sales to external customers 3,140 2,653 830 3,327 9,950 598 10,548 0 10,548 Intersegment sales or transfers 54 56 - 26 135 230 365 (365) - Total 3,194 2,709 830 3,353 10,085 827 10,912 (365) 10,548 Segment profit (loss) 307 (116) (146) (254) (209) (99) (308) (18) (326) Notes: 1. The “Others” segment is a business segment, mainly consisting of the Inspection Systems Business, Railway Maintenance Business, Information Processing Business, Factoring Business, Packing and Packaging Services Business, and Insurance Agency Business, which are not included in any of the reportable segments. 2. The adjustment to segment profit or loss of negative ¥18 million includes an elimination for intersegment transactions of negative ¥8 million as well as corporate revenue of ¥0 million and corporate expenses of negative ¥10 million, which are not allocated to each reportable segment. Corporate revenue is mainly net sales related to the company’s research and development activities, which are not attributable to any of the reportable segments. Corporate expenses are mainly general and administrative expenses and research and development expenses, which are not attributable to any of the reportable segments. 3. Segment profit (loss) is adjusted with operating loss in the quarterly consolidated statement of income.
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 13 2. Three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) Information on amounts of net sales and profit or loss by reportable segment and information on disaggregation of revenue (Millions of yen) Reportable segments Others (Note 1) Total Adjustments (Note 2) Amounts shown on quarterly consolidated statement of income (Note 3) Marine Systems Hydraulics and Pneumatics Fluid Measurement Equipment Defense & Communications Equipment Total Net sales Domestic 1,473 2,332 675 3,974 8,453 274 8,727 0 8,727 Overseas 2,184 481 50 4 2,720 143 2,863 - 2,863 Revenue from contracts with customers 3,657 2,813 725 3,978 11,173 416 11,590 0 11,590 Other revenue - - - - - 4 4 - 4 Sales to external customers 3,657 2,813 725 3,978 11,173 420 11,594 0 11,594 Intersegment sales or transfers 73 58 - 18 149 210 359 (359) - Total 3,730 2,871 725 3,996 11,322 630 11,953 (359) 11,594 Segment profit (loss) 390 39 (218) (121) 91 (303) (212) (37) (248) Notes: 1. The “Others” segment is a business segment, mainly consisting of the Inspection Systems Business, Railway Maintenance Business, Information Processing Business, Factoring Business, Packing and Packaging Services Business, and Insurance Agency Business, which are not included in any of the reportable segments. 2. The adjustment to segment profit or loss of negative ¥37 million includes an elimination for intersegment transactions of negative ¥23 million as well as corporate revenue of ¥0 million and corporate expenses of negative ¥14 million, which are not allocated to each reportable segment. Corporate revenue is mainly net sales related to the company’s research and development activities, which are not attributable to any of the reportable segments. Corporate expenses are mainly general and administrative expenses and research and development expenses, which are not attributable to any of the reportable segments. 3. Segment profit (loss) is adjusted with operating loss in the quarterly consolidated statement of income.
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 14 Significant changes in shareholders’ equity Not applicable. Going concern assumption Not applicable. Quarterly consolidated statement of cash flows The company has not prepared a quarterly consolidated statement of cash flows for the period under review. Depreciation including amortization of intangible fixed assets other than goodwill and amortization of goodwill for the three months ended June 30, 2025 and June 30, 2026 are as follows. Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation 363Millions of yen 432Millions of yen Amortization of goodwill - 0
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 15 3. Other Status of orders received The status of orders received by reportable segment for the period under review was as follows. Intersegment transactions were offset and eliminated. (1) Orders received Reportable segments Three months ended June 30, 2025 Three months ended June 30, 2026 YoY change Amount Amount Amount Change (%) Marine Systems 3,392 4,301 +909 +26.8 Hydraulics and Pneumatics 2,814 2,945 +131 +4.6 Fluid Measurement Equipment 1,468 1,509 +41 +2.8 Defense & Communications Equipment 3,082 5,014 +1,933 +62.7 Total of reportable segments 10,757 13,769 +3,013 +28.0 Others 1,879 1,869 -10 -0.5 Total 12,636 15,639 +3,003 +23.8 (2) Order backlog Reportable segments As of June 30, 2025 As of June 30, 2026 YoY change Amount Amount Amount Change (%) Marine Systems 5,957 7,953 +1,996 +33.5 Hydraulics and Pneumatics 3,551 3,694 +143 +4.0 Fluid Measurement Equipment 2,555 3,081 +525 +20.6 Defense & Communications Equipment 43,000 44,271 +1,271 +3.0 Total of reportable segments 55,064 58,999 +3,935 +7.1 Others 3,423 4,923 +1,500 +43.8 Total 58,487 63,921 +5,434 +9.3
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TOKYO KEIKI INC. (7721) Consolidated Financial Results for the Three Months Ended June 30, 2026 16 Reportable segments As of March 31, 2026 As of June 30, 2026 Change from the end of the previous fiscal year Amount Amount Amount Change (%) Marine Systems 7,309 7,953 +644 +8.8 Hydraulics and Pneumatics 3,562 3,694 +132 +3.7 Fluid Measurement Equipment 2,297 3,081 +784 +34.1 Defense & Communications Equipment 43,235 44,271 +1,036 +2.4 Total of reportable segments 56,403 58,999 +2,596 +4.6 Others 3,472 4,923 +1,450 +41.8 Total 59,875 63,921 +4,046 +6.8