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Financial Results Briefing for the Second Quarter of the Fiscal Year Ending March 31, 2026 (FY3/26) Supplementary Materials Tuesday, Nov 11, 2025 Tokyo Stock Exchange Prime Market Securities Code: 9729 TOKAI Corp. 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.
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TOKAI Corp. 2 Contents Summary of Financial Results Financial Results Highlights・・・・・・・・・・・・・ ・・・ 3 Financial Results (Consolidated Net Sales) ・・・・・・・・・ 4 Financial Results Highlights (Consolidated Operating Profit) ・・ 5 Consolidated Profit and Loss (P/L) ・・・・・・・・・・・・・ 6 Consolidated Financial Status (B/S) ・・・・・ ・・・・・・・ 7 Capital Investment Results ・・・・・・・・・・・・・・・・ 8 Topics ・・・・・・・・・・・・・・・・・・・・・・・・・ 9 Appendix Segments and Business Activities ・・・・・・・・・・・・・ 11
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TOKAI Corp. 3 ✓Consolidated net sales increased for the fifth consecutive fiscal years, and operating profit increased for the first time in two years, both reaching new record high 64,091 67,865 72,725 79,026 FY3/23 2Q FY3/24 2Q FY3/25 2Q FY3/26 2Q 3,567 3,684 3,664 4,436 FY3/23 2Q FY3/24 2Q FY3/25 2Q FY3/26 2Q Net sales Operating profit (¥mn)
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TOKAI Corp. FY3/25 2Q FY3/26 2Q Pharmacy Services Healthcare Services Environmental Services Others 4 ・Hospitalization and residence sets performed well ・Hotel linen sales grew ・Brisk performance in the direct rental business ・Consolidation of mikjapan Co., Ltd. and Kaigo Center Hanaoka Co., Ltd. ・Sales growth in the cleaning equipment manufacturing business ・Toilet-related sales remained strong Meanwhile, dust control products sales decreased ・Brisk sales of hospital cleaning service ✓ Consolidated net sales increased year on year and reached a record high, mainly as the sales of the core rental business progressed favorably, along with sales growth in the cleaning equipment manufacturing business and dispensing pharmacy business, as well as the contribution of sales from two companies that joined as consolidated subsidiaries during the previous fiscal year ・Increase in prescription unit prices ・ Consolidation of mikjapan Co., Ltd. Financial Results Highlights (Consolidated Net Sales) (¥mn）
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TOKAI Corp. 5 ・Increase in profit from increased revenue ・ Effect of higher revenue, including the impact from consolidation of Kaigo Center Hanaoka Co., Ltd. ・Decrease in rental material costs (Increasing inventory turnover ratio) ・Increase in profit due to decrease in cost ratio ・Increase in profit due to higher revenue in the cleaning equipment manufacturing business ・ Increase in rental material costs ・Increase in profit from increased revenue ・The incurrence of initial expenses associated with new service contracts FY3/25 2Q FY3/26 2Q Pharmacy Services Environmental Services Others Adjustments Healthcare Services ・Increase in profit from increased revenue ✓ Consolidated operating profit marked a new record high as profit increased year on year, mainly due to higher revenue in Healthcare Services Financial Results Highlights (Consolidated Operating Profit) (¥mn）
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TOKAI Corp. (¥mn) FY3/24 2Q FY3/25 2Q FY3/26 2Q Change Change % Net sales 67,865 72,725 79,026 +6,300 +8.7% Healthcare Services 34,910 37,498 40,587 +3,088 +8.2% Pharmacy Services 25,535 27,950 30,922 +2,971 +10.6% Environmental Services 7,332 7,196 7,430 +234 +3.3% Others 86 79 86 +6 +8.0% Operating profit 3,684 3,664 4,436 +771 +21.1% Healthcare Services 3,009 3,317 4,190 +872 +26.3% Pharmacy Services 1,201 920 961 +41 +4.5% Environmental Services 732 721 699 -22 -3.1% Others -7 -15 -4 +10 ー Adjustments -1,251 -1,279 -1,409 -130 ー Ordinary profit 3,869 3,917 4,699 +781 +20.0% Profit attributable to owners of parent 2,626 3,041 3,048 +6 +0.2% 6 Consolidated Profit and Loss (P/L)
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TOKAI Corp. FY3/25 FY3/26 2Q Change Current assets 56,311 58,167 +1,855 Non-current assets 57,640 58,825 +1,185 Total assets 113,951 116,992 +3,041 Current liabilities 23,153 22,907 -245 Non-current liabilities 4,952 5,212 +260 Total liabilities 28,105 28,120 +14 Total net assets 85,845 88,872 +3,026 Total of liabilities and net assets 113,951 116,992 +3,041 Equity ratio 74.8% 75.4% +0.6P (¥mn) 7 Consolidated Financial Status (B/S)
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TOKAI Corp. FY3/25 2Q FY3/26 2Q FY3/26 (planned)Change Change % Capital investments 2,167 2,153 -13 -0.6% 5,140 Depreciation 2,402 2,314 -88 -3.7% 5,035 (¥mn) (Breakdown of capital investments) Rental materials Plant equipment, etc. New store opening expenses, etc. System-related Others Plant construction expenses 8 Capital Investment Results 679 506 1,431 162 286 901 183 639 1,219 111 106 108 47 103 507 634 347 512 971 FY3/25 2Q results FY3/26 2Q results FY3/26 planned 2,1532,167 5,140 Facility renovation and new site openings in the elderly care equipment business
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TOKAI Corp. 9 ✓ On the premise of continuing stable dividends, in this fiscal year marking our 70th anniversary, we will implement commemorative dividends (¥10 per year) ✓ To achieve an appropriate capital structure, we will implement the acquisition and retirement of treasury shares November 12, 2025 Scheduled to acquire up to 3.3 million shares of treasury share, which is equivalent to 9.8% of total shares outstanding (excluding treasury share) Under the three-year medium-term management plan (FY3/26–FY3/28), aim for a cumulative total payout ratio of 70% or higher November 28, 2025 Scheduled to retire all of the treasury share acquired above 35.1％ 19 21 25 29 34 23 39 33 29 34 25.5% 34.6% 41.7% 41.8% -5.0% 5.0% 15.0% 25.0% 35.0% 45.0% 55.0% 0 20 40 60 80 100 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 Dividend payout ratio 70th anniversary commemorative dividends ¥5 each at interim and year-end ¥10 per year (Forecast) Interim dividend Year-end dividend
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Appendix 10
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TOKAI Corp. * Segment Composition indicates the percentage of FY3/25 consolidated net sales. * In addition to the above, there are also businesses not included among reporting Segments. Food supply in medical institutions and nursing care facilities ＜Cleaning Equipment Manufacturing Business＞ Development and manufacture of machinery and equipment for finishing processes that contributes to reducing labor and increasing efficiency at cleaning plants ＜Aqua Clara Business＞ Aqua Clara water delivery service, etc. Healthcare Services （ 51.4% ） Pharmacy Services （ 38. 8 % ） Environmental Services （ 9.6 % ） ＜Bedding and Linen Supply Business＞ Bedding rental and linen supply service to accommodation facilities such as hotels <Elderly Care Equipment Rental＞ Elderly care equipment rental and sales, and home modification services, based on the Long-Term Care Insurance System ＜Hospital Business＞ Rental of hospital bedding and white coats, and contracted medical-related services including linen supply, nursing assistance, and distribution management within hospitals Rental provision of bedding to nursing care facilities ＜Solar Power Business＞ Electricity retail business using solar power installed on companies’ own premises, etc Operation of Tanpopo Pharmacy dispensing pharmacies, primarily located near medical institution entrances Operation of a nationwide franchise for rental of Leasekin branded environmental beautification products Building cleaning and management services, focused on medical institutions and nursing care facilities ＜Rehabilitation-Type Daycare Services＞ Operation of Mik Kenko-no-Mori rehabilitation-type daycare service facilities aimed at maintaining and improving the physical functions of elderly people Operation of community- focused Drug Mik drugstores in the Kansai area Segment Composition and Overview of Business 11
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TOKAI Corp. 12 Caution Regarding Forecasts These materials contain predictions and forecasts regarding the future. These reflect the judgment of the Company based on information currently available, and they include potential risks and uncertainties. Therefore, please understand that changes in various factors could cause the actual results to be different from the forecasts herein.