Fiscal Year Ending March 2026 Financial Results and Medium-Term Management Plan Progress Briefing Script—Q&A Script | NIKKO CO.,LTD. (6306) timely disclosure

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¥100 million (increase in ordinary profit)

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Contents of this document

Earnings briefing transcriptFiscal year ending March 202616 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales493.71 Hundreds of millions of yen

Operating profit30.99 Hundreds of millions of yen

Full-year earnings forecast

Net Sales

550 Hundreds of millions of yen

Operating profit margin

6.9 %

Operating profit

38 Hundreds of millions of yen

Annual Dividend

¥42

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Revenue fell slightly short of the medium-term plan, but operating profit met the plan

Key points of the Q&AKey questions raised by investors at the briefing and the company's answers

Questions Background to the improvement in the crushing equipment-related business's profit margin / Answer The main factor was the increase in the sales mix of the company's own Mobix products
Questions Factors driving growth in the other businesses / Answer A recovery in demand at 日工セック and the recovery of projects carried over from the previous fiscal year
Questions Sustainability of orders for AP and BP / Answer Orders are expected to continue during the medium-term plan period, supported by energy-saving subsidies for AP and capital investment appetite for BP
Questions Achieving the 10% ROE target ahead of schedule / Answer The company will first ensure that it achieves the medium-term target of 8%, and then aim to achieve 10% ahead of schedule
Questions Businesses under consideration for withdrawal or downsizing / Answer The company is considering this, but is not yet at a stage where it can report specific business names
Questions Criteria for initiating share repurchases / Answer No specific timing or criteria were provided. The company will make a comprehensive assessment of its share price, PBR, capital efficiency and market conditions
Questions Likelihood of achieving the final-year medium-term plan targets / Answer Although it is difficult to quantify the likelihood as 80% or another figure, the targets are well within reach

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Higher revenue and an improved cost ratio+¥1.2 billion
Personnel expenses, including investment in human capital and base-pay increases-¥580 million
Increase in ordinary profit in FY2025Approximately ¥400 million
Higher revenue and an improved cost ratio in FY2026Approximately +¥1.7 billion

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

FY2026 net sales550 Hundreds of millions of yen
FY2026 operating profit38 Hundreds of millions of yen
FY2026 operating margin6.9 %
Revenue from subsidy-related products in FY2027Approximately 80

New initiatives

Transforming the maintenance services business
Expanding the use of outsourced manufacturing and in-group production
Reviewing the business portfolio based on ROIC
Establishing a new equipment center for 日工セック
Advancing sorting technology using AI
Developing measures to address lithium-ion battery contamination
Conducting combustion tests for next-generation fuels and preparing a dedicated test center
Expanding parts procurement from China
Developing new sales channels for flood barriers

Key KPIsA metric the company considers important as a management benchmark.

Order backlog334 Hundreds of millions of yen
Year on year against the same period last yearUp 46% year on year
Percentage of revenue eligible for subsidies7.6 %
Expected percentage of revenue eligible for subsidies in FY202734.5 %
Market capitalization (end-May 2026)340 Hundreds of millions of yen
Overseas Revenue MixApproximately 9

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Unit prices of individual productsHigher
Maintenance service revenueIncreased
Number of large-scale plants deliveredApproximately 25 per year

Segment results

Asphalt plant-related business

Percentage of revenueApproximately 40%

Profit mixLess than 20%

Concrete plant-related business

Percentage of revenueApproximately 30%

Profit mix36%

Environmental and conveying-related business

Percentage of revenueApproximately 9%

Profit mix22%

Contract manufacturing-related business

ProfitA significant contributor to profit

Crushing equipment-related business

ProfitChallenging conditions

Medium-term management plan targets

Revenue
Target fiscal yearFY2027
Target value600
Operating margin
Target fiscal yearFY2027
Target value8
Share price
Target fiscal yearFY2027
Target value1,000

Financial targets

ROE
Target value8
Actual valueAbove the initially assumed level of 6%
Equity ratio
Target valueApproximately 50% or higher
D/E ratio
Actual valueNo clear correction was made when a questioner referred to approximately 0.3x

Market Size / Share

Chinese market size40～50
ASEAN revenue target for the AP businessApproximately 50

Orders received and order backlog

Order backlog334 Hundreds of millions of yen

Year on year against the same period last yearUp 46% year on year

Number of employees

Change during the periodThe number of female employees increased overall

Hiring planRecruiting and developing younger talent

Annual Dividend

Fiscal year ending March 2025

Annual¥40

Interim¥17

End of period¥23

Fiscal year ending March 2026 forecast

Annual¥42

Payout ratio

At least 60%

Acquisition of treasury shares

The size of the authorization, number of shares and period have not been determined. The company plans to act flexibly based on its PBR, share price, capital efficiency and market conditions

Contents of this document
Item	Details
Document type	Earnings briefing transcript
Fiscal Period Covered	Fiscal year ending March 2026
Net Sales	493.71 Hundreds of millions of yen
Operating profit	30.99 Hundreds of millions of yen
Full-year earnings forecast	Net Sales 550 Hundreds of millions of yen / Operating profit margin 6.9 % / Operating profit 38 Hundreds of millions of yen / Annual Dividend ¥42
Self-assessment against the plan	Revenue fell slightly short of the medium-term plan, but operating profit met the plan
Segment results	Asphalt plant-related business Percentage of revenue Approximately 40% / Profit mix Less than 20% / Concrete plant-related business Percentage of revenue Approximately 30% / Profit mix 36% / Environmental and conveying-related business Percentage of revenue Approximately 9% / Profit mix 22% / Contract manufacturing-related business Sales Not disclosed / Profit A significant contributor to profit / Crushing equipment-related business Sales Not disclosed / Profit Challenging conditions
Breakdown of Factors Affecting the Change	Factors Higher revenue and an improved cost ratio / Amount +¥1.2 billion, Factors Personnel expenses, including investment in human capital and base-pay increases / Amount -¥580 million, Factors Increase in ordinary profit in FY2025 / Amount Approximately ¥400 million, Factors Higher revenue and an improved cost ratio in FY2026 / Amount Approximately +¥1.7 billion
Key KPIs	Indicator name Order backlog / Value 334 Hundreds of millions of yen / Year on year against the same period last year Up 46% year on year, Indicator name Percentage of revenue eligible for subsidies / Value 7.6 % / Year on year against the same period last year Not disclosed, Indicator name Expected percentage of revenue eligible for subsidies in FY2027 / Value 34.5 % / Year on year against the same period last year Not disclosed, Indicator name Market capitalization (end-May 2026) / Value 340 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name Overseas Revenue Mix / Value Approximately 9 / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Indicator name Unit prices of individual products / Value Higher, Indicator name Maintenance service revenue / Value Increased, Indicator name Number of large-scale plants delivered / Value Approximately 25 per year
Number of employees	Number of Employees Not disclosed / Change during the period The number of female employees increased overall / Hiring plan Recruiting and developing younger talent
Assumptions Underlying the Business Outlook	Item FY2026 net sales / Value 550 Hundreds of millions of yen, Item FY2026 operating profit / Value 38 Hundreds of millions of yen, Item FY2026 operating margin / Value 6.9 %, Item Revenue from subsidy-related products in FY2027 / Value Approximately 80
Medium-term management plan targets	Target fiscal year FY2027 / Item Revenue / Target value 600 Hundreds of millions of yen, Target fiscal year FY2027 / Item Operating margin / Target value 8 %, Target fiscal year FY2027 / Item Share price / Target value ¥1,000
Financial targets	Indicator ROE / Target value 8 % / Actual value Above the initially assumed level of 6%, Indicator Equity ratio / Target value Approximately 50% or higher / Actual value Not disclosed, Indicator D/E ratio / Target value Not disclosed / Actual value No clear correction was made when a questioner referred to approximately 0.3x
Annual Dividend	Fiscal year ending March 2025 Annual ¥40 / Interim ¥17 / End of period ¥23 / Fiscal year ending March 2026 forecast Annual ¥42 / Interim Not disclosed / End of period Not disclosed
Payout ratio	At least 60%
Acquisition of treasury shares	The size of the authorization, number of shares and period have not been determined. The company plans to act flexibly based on its PBR, share price, capital efficiency and market conditions
Orders received and order backlog	Orders received Not disclosed / Order backlog 334 Hundreds of millions of yen / Year on year against the same period last year Up 46% year on year
Market Size / Share	Item Chinese market size / Value 40～50, Item ASEAN revenue target for the AP business / Value Approximately 50
Key points of the Q&A	Questions Background to the improvement in the crushing equipment-related business's profit margin / Answer The main factor was the increase in the sales mix of the company's own Mobix products, Questions Factors driving growth in the other businesses / Answer A recovery in demand at 日工セック and the recovery of projects carried over from the previous fiscal year, Questions Sustainability of orders for AP and BP / Answer Orders are expected to continue during the medium-term plan period, supported by energy-saving subsidies for AP and capital investment appetite for BP, Questions Achieving the 10% ROE target ahead of schedule / Answer The company will first ensure that it achieves the medium-term target of 8%, and then aim to achieve 10% ahead of schedule, Questions Businesses under consideration for withdrawal or downsizing / Answer The company is considering this, but is not yet at a stage where it can report specific business names, Questions Criteria for initiating share repurchases / Answer No specific timing or criteria were provided. The company will make a comprehensive assessment of its share price, PBR, capital efficiency and market conditions, Questions Likelihood of achieving the final-year medium-term plan targets / Answer Although it is difficult to quantify the likelihood as 80% or another figure, the targets are well within reach
New initiatives	Transforming the maintenance services business, Expanding the use of outsourced manufacturing and in-group production, Reviewing the business portfolio based on ROIC, Establishing a new equipment center for 日工セック, Advancing sorting technology using AI, Developing measures to address lithium-ion battery contamination, Conducting combustion tests for next-generation fuels and preparing a dedicated test center, Expanding parts procurement from China, Developing new sales channels for flood barriers

Items this document does not state (10)

Ordinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastNumber of stores and locationsRisk amount incorporated into the outlookCapital expenditures

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Higher revenue and an improved cost ratio lifted profit by ¥1.2 billion, while personnel expenses, including investment in human capital and base-pay increases, reduced profit by ¥580 million. The company also explained that maintenance services made a significant contribution to profit.

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