NISSEI ASB MACHINE CO., LTD. (6284) Q2 2026 Earnings Call Transcript

NISSEI ASB MACHINE CO., LTD. Q2 Financial Results Briefing for the Fiscal Year Ending September 2026 May 25, 2026

Event Summary [Company Name]

NISSEI ASB MACHINE CO., LTD.

[Company ID]

6284-QCODE

[Event Language]

JPN

[Event Type]

Earnings Announcement

[Event Name]

Q2 Financial Results Briefing for the Fiscal Year Ending September 2026

[Fiscal Period]

FY2026 Q2

[Date]

May 25, 2026

[Number of Pages]

33

[Time]

16:00 – 16:57 (Total: 57 minutes, Presentation: 34 minutes, Q&A: 23 minutes)

[Venue]

Webcast

[Venue Size] [Participants] [Number of Speakers]

[Analyst Names]*

2 Kota Aoki Yuichi Yamamoto

Yusuke Miura Mitsuyuki Odaira

Representative Director and Chairman Director and General Manager, Administration Division Daiwa Securities Tokai Tokyo Intelligence Laboratory

*Analysts that SCRIPTS Asia was able to identify from the audio who spoke during Q&A or whose questions were read by moderator/company representatives.

1

Presentation Moderator: Thank you very much for joining us today despite your busy schedules. Today's briefing is also being broadcast live via Zoom Webinar. For those joining via Zoom Webinar, the presentation materials are posted on the IR website of NISSEI ASB MACHINE CO., LTD. For the Q&A session, we will give priority to questions from the floor, then move on to voice questions, and finally to text-based questions. Please understand in advance that, due to time constraints, we may not be able to address all questions. We will begin shortly, so please bear with us for a moment. It is now time to begin. We will now start NISSEI ASB MACHINE's Q2 financial results briefing for the fiscal year ending September 2026. First, allow me to introduce our presenters. Representative Director and Chairman, Kota Aoki. Director and General Manager of the Administration Division, Yuichi Yamamoto. Those are our two presenters. The session is scheduled to conclude at 5:00 PM. Yamamoto, Director and General Manager of the Administration Division, will now present the financial results. Yamamoto: Good afternoon, everyone. Thank you very much for joining our H1 financial results briefing today despite your busy schedules. To reintroduce myself, I am Yamamoto, serving as Director and General Manager of the Administration Division. Here is today's agenda. I will cover Section 1, the H1 results, and Section 2, the financial forecast. The market information and growth strategy will be presented later by Aoki.

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Now I will present the H1 results for FY2026. These are the key highlights of the H1 results. Despite a highly uncertain international environment, in H1, we set H1 record highs for orders received, net sales, and operating profit. Orders in particular were very strong, with significant growth in the Americas, Europe, and India.

3

This is the breakdown of the results. For the H1 results highlighted in red here, we set record highs not only for orders received, net sales, and operating profit, but also for order backlog and every level of profit.

4

These are the factors for changes in operating profit. Compared with H1 last year, the weaker yen against the US dollar and the euro contributed JPY300 million to profit. In addition, fixed-cost recovery from sales growth and gains from regional and product mix improvement each contributed a little over JPY500 million. These factors absorbed the one-time exhibition costs in Q1, resulting in an operating profit increase of approximately JPY1 billion.

5

These are orders by segment. Looking at the top section by product, all segments set record highs, with molding machines in particular growing significantly, driven by small/mid-sized models. Looking at the lower section by region, although East Asia saw a decline in large-machine orders for Japanese customers, all other regions set record highs.

6

These are net sales by segment. By product, although auxiliary equipment declined slightly, molds and parts in particular saw significant increases. By region, East Asia saw a sharp decline due to the drop-off of last year's large-machine sales for Japanese customers, but sales increased mainly in Europe and the Americas.

7

These are the quarterly trends in orders and net sales by machine size. Large-machine orders and sales did not change significantly, but small/mid-sized machines performed very strongly and expanded their share.

These are the quarterly trends in orders and net sales by region. Historically, our sales mix has averaged around 50% in the Americas and Europe and 50% in Asia, but in this H1, the share of the Americas and Europe rose significantly to approximately 60%.

8

These are the trends in capital investment and R&D expenses. In response to strong inquiries and orders, we are expanding our machine-tool capacity at our India plant. Accordingly, capital investment for FY2026 is forecast at JPY2 billion. R&D expenses are planned at JPY600 million.

9

Next, the financial forecast for FY2026. Reflecting the H1 results and recent demand, we have revised the financial forecast upward. Net sales are revised up by JPY3.2 billion from the initial plan to JPY50 billion, operating profit up by JPY1.5 billion to JPY13 billion, and net income up by JPY1 billion to JPY9.1 billion. In line with the profit increase, we plan to raise the year-end dividend by JPY40 to JPY240 per share.

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This shows the impact of the Middle East situation on our financial forecast. On recent demand, we have not seen any significant slowdown in container demand. However, rising plastic resin prices carry the risk of weakening our customers' appetite for capital investment. To address this, we will continue to differentiate ourselves through our 4S technology: Labor, Energy, Space, and Material saving. On the risk side for net sales, there is the risk of shipment delays caused by maritime transport disruptions, but we are taking appropriate measures to prevent such delays. These risks are factored into our net sales forecast of JPY50 billion.

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These are our initiatives to enhance corporate value. Based on the FY2026 forecast, ROE is expected to come in at 14.7%. The cost of capital has been rising recently amid rising interest rates, but we still aim to achieve an ROE that exceeds our cost of capital. We will continue to work on raising ROE through profit expansion driven by sales growth and through enhanced shareholder returns, and we will work to reduce our cost of capital by strengthening dialogue with shareholders.

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Lastly, our shareholder return policy. The dividend per share for FY2026 will increase to JPY240. This brings the dividend to double the level paid in FY2023. We will continue to maintain dividends, aiming for a consolidated dividend payout ratio of around 40%. That concludes my explanation of the FY2026 H1 results and the FY2026 forecast. From here, Chairman Aoki will continue. Moderator: Thank you. Next, Representative Director and Chairman Aoki will present on market information and growth strategy. Aoki: I am Aoki, Chairman. Thank you very much for attending our financial results briefing today despite your busy schedules. I would like to talk about the current market environment and the growth strategy we are pursuing. First, this H1 was a period of significant change. We faced a number of difficult and complex external conditions, including surging prices, US tariff policy, and rising Middle East tensions. Even amid such headwinds, I take pride in the fact that we demonstrated a very high level of adaptability. Even when there were fluctuations in a specific region or product, we were able to flexibly cover them with other regions or products. By consistently reading change accurately and turning it into opportunity, we were able to deliver extremely strong orders and overall growth. Now let me walk through the details. Please turn to the next slide.

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First, as already mentioned, in line with the H1 order growth, we revised the full-year sales forecast upward. We also analyze that 80% of this increase in orders represents real growth driven by internal efforts. As shown on the chart, our initial full-year sales forecast was JPY46.8 billion, which we have raised by JPY3.2 billion to JPY50 billion. This upward revision is entirely the result of strong H1 orders. Next, looking at orders received shown in blue, the figure rose substantially by JPY5.7 billion, from JPY22.9 billion the prior year to JPY28.6 billion. The breakdown of why orders grew this much is shown above. The breakdown of this JPY5.7 billion is: FX impact JPY1 billion, price revision effect JPY1 billion, trade-show effect JPY1.5 billion, and enhanced competitiveness and organic growth JPY2.2 billion. Excluding the FX impact, which is an external factor, we analyze that more than 80%, or JPY4.7 billion, came from real growth driven by internal efforts. We feel very positive about this.

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Next, on the trade shows that have been a major driver of this order growth. For us, exhibiting at trade shows is the largest sales promotion and marketing opportunity we have. Here we have selected two overseas exhibitions that took place during H1, both of which I personally attended. First, please look at the photo on the left. This is K2025, held in Germany last October. As industry insiders will know, this is the largest trade show in the industry and the event we regard as most important. As mentioned earlier, in the context of our order growth, this was truly a leading driver of our results. Next, the right side shows PLAST INDIA 2026, held in India this February. This still felt more like the world's largest local exhibition than an international one, but India is our most important market, so in addition to sales promotion we were able to gather a wide range of needs and information from many customers and industry participants. This trade show also delivered significant results for us.

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Looking at these results, we reaffirmed that trade shows are indeed at the core of our order growth. This map summarizes our exhibition schedule from April 2026 onward. Two of these I would like to highlight. The first is NPE 2027 on the right side, an international exhibition held in Florida, USA, scheduled for May next year. The second is Chinaplas, which is attracting global attention. As you can see, there are actually two Chinaplas events listed: one is the Chinaplas that was already held in Shanghai this April, and the one above it is the Chinaplas to be held in Guangzhou next April. Chinaplas is a fairly large trade show within the plastics industry. Plastics-industry trade shows are typically held only once every three years, but Chinaplas alone is held every year, and it is growing larger each year. With that in mind, next year we plan to put more effort into Chinaplas. Going forward, beyond just international exhibitions, we intend to take an even more aggressive stance, boldly deploying people, equipment, and capital into trade shows we consider important or necessary.

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On the next page, another major driver is the market expansion driven by the evolution of the ASB Series, which has become synonymous with our company. As shown in the chart below, ASB Series orders reached an all-time high. There are several reasons, as listed in the bullet points above. The first is the penetration of our proprietary Zero Cooling System. As a result, sales of the 1-Step machine are currently growing. The second is a shift in the market. The glass container market is gradually shifting to plastic, and we have been successfully capturing this shift, driving higher machine sales. The third is the replacement of extrusion blow molding machines, which are in a different category. We have made progress in replacing those machines and shifting plastic container production from that segment to our ASB Series. The total pie here is still very large, but we are only winning one or two machines a year, so we see significant potential going forward. The fourth reason is our robust service and support system. For example, when a prospective new customer says, "I cannot operate a machine this large," we provide ramp-up support and service to help them run the machine successfully. Because we have this support system in place, it has become easier for relatively new customers to buy our machines, which is also contributing to higher machine orders. In terms of expansion regions, as noted there, growth has been particularly strong in India, Europe, and the US.

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Next is the market summary. Although there are some concerns about the market arising from the Middle East situation, our business plan is progressing largely as expected. As mentioned earlier, the strong-performing regions are North America, Europe, and India, and we expect this trend to continue for some time. We have also highlighted the opportunities and risks we are focused on by region. I will briefly walk you through them. First, in North America, the opportunities include organic growth, rising service demand, and growing demand for HDPE containers. In Europe, compliance with environmental regulations and the current FX rate are also opportunities for us. In India as well, organic growth and the shift from bottles and cans to PET bottles are progressing. In Southeast Asia, we see a large beverage market that still has significant headroom as a future business opportunity for us. On the risk side, the first is an economic slowdown across all regions. We are not yet seeing this, but we always have to keep it in mind as a risk. In addition, there is currently significant political instability in Central and South America.We are hearing that investment appetite has weakened somewhat and there is some slowdown. Another issue affecting things broadly is the recent surge in naphtha-related raw material prices. In Southeast Asia and especially China, there is price competition with local manufacturers. And in Japan, what we hear about often these days is the shortage of talent and labor, which could also be a risk. That is the market information. From here, I will explain where ASB is heading next, our growth strategy.

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First, the trends in our net sales and operating profit. As you can see, the revised plan for FY2026 calls for net sales of JPY50 billion, operating profit of JPY13 billion, and an operating margin of 26%. Over the past 20 years, sales have tripled and profit has grown roughly seven-fold. In addition, we are now on track to reach JPY50 billion in sales ahead of schedule. This is a slight aside, but I am sometimes asked, "Why is your profit margin so high?" When asked, I respond that there are two factors. The first is an external factor: we are blessed with a favorable market environment. The second, which I feel is even bigger, is an internal factor. That internal factor is the global sales organization we have built, our productivity gains at the India plant, and our ability to layer on technological innovation and service. We have an in-house mechanism for maximizing this added value, and this is precisely the highmargin profile that other companies cannot replicate.

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Now, building on this earning power, what will we do at the next stage? Let me walk through four specific growth strategies. These are the four growth strategies for pursuing the next stage. First, in the non-beverage area, this is the ASB Series, our greatest strength, where we will aim for stable earnings growth. Next, to expand sales scale, we will accelerate our push into the beverage area. Third, in the customer support area, we will expand parts, service, and DX, and enhance customer satisfaction. Finally, the growth investment that underpins all of this. We will prioritize investments in expanded production capacity, TSC expansion, and DX. Through these four pillars of growth strategy, we will continue to aim for stable growth. Now let me look at each growth strategy in more detail.

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The first is the ASB Series in the non-beverage area. This is our flagship product line, and we will accelerate further technological innovation and premiumization going forward. We plan to combine the Zero Cooling technology, our greatest strength, with hybrid electric machines and make this the standard. We will also expand share in the polyethylene container market. We position this as our medium-term growth strategy.

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The second growth strategy is scale expansion in the beverage area. We see the current trend in the beverage container market as a shift from large-scale centralized production to mid-scale decentralized production. Going forward, we plan to grow sales scale in that mid-scale decentralized production market with two of our strategic models. The first is the PF36 shown here, a bottle-molding machine optimal for mid-scale beverage production. The second is the PM-90, a high-quality, compact preform molding machine. On PF36's H1 orders, to be honest, we struggled, winning one unit in Japan and one unit overseas. However, there is still significant latent demand both at home and abroad, and we expect to win substantial volume in H2. For sales promotion, we are currently developing in-house an integrated system that connects to filling machines. Next, on PM-90. H1 orders for PM-90 came to one unit in Japan and seven units overseas, roughly in line with plan. Going forward, we still have many promising inquiries from both Japan and abroad. We will accelerate market expansion in emerging regions such as India and continue to aim for further sales growth. Through this, we are targeting annual sales of JPY10 billion in the future from these two models.

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On the next page, the third growth strategy is expansion in the customer support area. In recent years, service demand has been surging on the back of preventive maintenance needs and engineer shortages. By strengthening our global support structure, we plan to raise our service sales mix to 20% in the future. To raise this to 20%, we plan to achieve three things: first, increase parts supply capacity in India; second, strengthen and expand the functions of our TSC at local service hubs; and third, drive the adoption of DX. By achieving these three, we believe we can reach the 20% sales mix. As additional information, with business expansion in the US, our current Technical Support Center has become cramped, so we have decided to relocate to a new facility of approximately 10,000 square meters. The investment will be close to JPY1 billion, and we will push ahead at full speed, aiming to begin operations by the end of 2026.

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Next, the last of the growth strategies: our future growth investment. If we set a near-term sales target of JPY60 billion to pursue the next growth stage, our current production capacity would be insufficient. Accordingly, in anticipation of further expansion, we will pursue our capital investment plans agilely and boldly. In our case, the process of climbing from JPY50 billion to JPY60 billion and beyond will require considerable investment, but we would like you to see this as proactive investment aimed at reaching even higher levels. The next one to two years are likely to involve fairly large investments, and we have already begun considering them.

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Next, on cash allocation. As you can see on the left, we currently have approximately JPY30 billion in cash on hand. Of this, we plan to maintain JPY10 billion to JPY15 billion as working capital and use all the rest as a growth investment pool. On the allocation policy for future cash flows, taking EBITDA as 100%, our policy is to allocate 60% to growth investment and 30% to shareholder returns. We intend to place even greater emphasis on the balance between investment and returns. We will review this regularly and continue to think about investment, growth, and returns so that the best balance can be struck at any given time.

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Lastly, on ASB's next 50 years. In November 2028, we will mark the 50th anniversary of our founding. Starting from the ASB 1-Step machine, we have steadily broadened our business scope into India, the mold business, and customer support. Over the past 50 years, as a machinery manufacturer, we have supplied hardware in the form of machines and molds and supported the stable operation of those machines. Looking to the next 50 years, however, rather than remaining simply a machinery manufacturer, we want to evolve into a Total Solution Provider supporting our customers' DX and sustainable management. That concludes my presentation for today. As we head into the next 50 years, we would be grateful for your continued support of our company as we keep pushing forward without standing still. Thank you again for attending today.

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Question & Answer

Moderator [M]: We will now move on to the Q&A session. We will first take questions from the floor. Please understand in advance that, due to time constraints, we may not be able to address all questions. Thank you. We will bring the microphone over now. Miura [Q]: Thank you for the presentation. This is Miura from Daiwa Securities. I have two brief questions. First, I would like to revisit your H1 results briefly. I think your results came in well above the initial plan and your assumptions, particularly on operating profit. Was the driver the strong orders you mentioned earlier, with orders coming in higher than expected? Or was it better-than-expected product and regional mix on the profit bridge? Or were expenses also held below plan to some extent? Could you walk us through which factors made H1 come in above plan? Yamamoto [A]: Let me take this question. First, the reason H1 results came in above our initial outlook is the very strong orders I described earlier, which exceeded our assumptions. As shown in the chart, we had factored in a certain level of K2025 effect from the outset, but customer demand turned out to be much stronger than we had assumed. The other factor is enhanced competitiveness and organic growth. We had expected a certain level of strength, particularly strong demand in the Americas, but in addition to the Americas, demand in Europe was also very strong, and that has been the main driver of orders. Because growth was very strong starting from Q1, we judged that this was order strength that would carry through to this fiscal year's net sales, and we therefore revised the forecast upward. One more point, on the profit bridge. The FX portion is an external factor, so this is growth driven by externals rather than by our own underlying strength. But with sales scale growing this much and fixed costs not growing nearly as much, fixed-cost recovery contributed a little over JPY500 million. In addition, as I mentioned, the Americas and Europe were very strong. We basically sell our machines and equipment at the same prices worldwide, but having said that, customers in the Americas and Europe tend to purchase at relatively higher prices, and that contributed to a profit increase. Miura [Q]: Thank you. My second question is about orders. As you mentioned, K2025 was very well received and orders increased above expectations. Could you walk us through K2025 in a bit more detail, which products were well received by which customers, and where the increased orders came from? Also, this may be a difficult question, but how long do you expect the K2025 effect to last, into H2 and how far beyond? Once the K2025 effect fades, will order momentum slow down a bit? Or, given the other trade shows you introduced earlier, would you say momentum will not slow yet and there is still further to go? Any comments on how you see this would be appreciated.

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Aoki [A]: First, on whether momentum is slowing. I have been watching the market myself, and I do not really feel any slowdown. As I mentioned earlier, in the US, Europe, and India, I expect strong conditions to continue for some time. On how large the K2025 effect was, we have written down JPY1.5 billion here, although the definition itself is difficult to pin down. At K2025, we showcased the 1-Step machine. Many customers saw the 1-Step machine and the Zero Cooling System, and when we explained it, comments like "with this we can make it pay" and "with this we want one" came up quite frequently. Another point this time is that the 1-Step machine we exhibited was the first all-electric model, and we molded polyethylene using that electric machine. This helped customers understand the potential of the 1-Step machine, and conversations about 1-Step picked up suddenly. That is all from me. Miura [M]: That is all from me. Thank you very much. Moderator [M]: Thank you for your questions. Next, are there any other questions from the floor? Thank you. Minagawa [Q]: Thank you for the presentation. I am Minagawa from SMBC Nikko Securities. I have three questions. My first question is about the recent situation in Iran. In your earlier comments, you mentioned both the risk of weaker investment from rising resin prices, and on the other side, your appeal through material savings. Which is larger, the negative factor or the positive factor? If possible, could you also tell us whether there has been any significant change in inquiries before and after March, looking at this earnings period? Yamamoto [A]: Thank you. On the Iran situation, particularly the customer reaction to rising resin prices: first, container demand itself has not declined. It remains robust. Naturally, the rise in resin prices has been very impactful for customers in the Americas and Europe as well, but against this, our machines, especially the 1-Step machines, offer very strong cost performance through labor, energy, and material savings, so to the extent that material prices have risen, we feel this has actually become an opportunity for us. One more point: depending on the region, in some regions where customers are struggling significantly to procure petroleum, container demand itself remains, but customers are currently focused first on securing materials, so there have been cases where projects are put on hold for the time being. That said, we have not seen any project cancellations at this point, so once the Middle East situation calms down a bit, we expect these customers to come back. Aoki [A]: Let me add a little. It is clear that we have not seen any significant impact at the moment. However, we do think that the longer this drags on, the greater the risk will become. In our case, since our business is driven by bottle demand, downturns tend to be followed by recoveries in a repeating pattern, so at this point we are not assuming any major negative impact. I just wanted to add that. Minagawa [Q]: Thank you. My second question is about what you have observed at the trade shows. Have you sensed anything different, whether in terms of new countries or new industries? Aoki [M]: I am sorry, could you repeat that? Minagawa [Q]: I mean the visitors who come to your trade shows. Have you seen people from new countries or from new industries beginning to take interest?

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Aoki [A]: One thing, going back to K2025: visitors from China and India were significantly fewer than in past years. I think this was due to visa-related and other issues. So in terms of visitors, we did not particularly feel that any single region had suddenly increased. On the other hand, as I mentioned earlier, beyond our ASB Series, manufacturers from other categories, extrusion blow molding makers, visited our booth, and a fair number of them gathered around to gather information, with reactions along the lines of, "So ASB has finally moved into polyethylene too." That left a particularly strong impression on me. Minagawa [Q]: Thank you. Also, earlier in your presentation you mentioned the view that the beverage industry is shifting from largescale production to mid-scale decentralized production. Could you tell us the background to that view? Aoki [A]: Yes. One reason that has emerged from our market research is local production for local consumption. The shift is from a production system in which products were made in large volumes on largescale machines and trucked over long distances, to one in which mid-scale production is used to save on transport and related costs. The other reason: to be honest, I personally know some people at some fairly large preform manufacturers. In our conversations, I have heard comments like, "Large machines do not sell the way they used to. We are getting to the point where we have to make mid-sized and small preform molding machines too." Hearing things like that, I felt that needs and trends are headed in that direction. That is all. Minagawa [Q]: On the drivers of this trend, is the shift to small/mid because the regions where large machines could be deployed are already saturated? Or is it that, with logistics costs rising, smaller machines and decentralized production reduce logistics costs, so as the weight of logistics costs rises, the smaller machines become advantageous? Which would you say is the main background? Aoki [A]: That is correct. One element is logistics costs. The other is that in markets such as South America or Africa, where high-volume production is not really needed and customers want a specific volume just for that region, the production naturally becomes mid-scale. We understand there are markets like that as well. Moderator [M]: Thank you for your questions. Are there any other questions from the floor? We will now move to questions from those joining via Zoom Webinar. We have already received some questions through Q&A, which we will introduce later. We will now connect with those who have clicked the raise-hand button. Please go ahead with your question. Odaira [Q]: Hello. This is Odaira from Tokai Tokyo Securities. Thank you, as always. I am joining from the web. I would like to ask two questions. One is on H1 results. There was discussion of strong orders in the US, but what is inside that? What types of customers are driving the growth? Beverage or non-beverage? New customers or existing? And by scale, are these bottle manufacturers, household-goods makers, or end users? I would like to ask about any changes in customer composition during H1. Just the major ones in the US would be fine. That is it. Aoki [A]: Yes, thank you. On the US, basically we do not have pure beverage manufacturers as customers. Our customers in the US are non-beverage manufacturers rather than beverage manufacturers. That said, what is currently booming in the US is an alcoholic beverage, specifically cocktail bottles, and these have been growing very strongly, with substantial volumes going out.

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The customer mix is also very well balanced: we are winning new-customer orders, orders from large customers, and orders from mid-sized and smaller customers. None of these segments is declining, and the overall picture is one of broad growth across the US market. Odaira [Q]: Thank you. Last year there was discussion that mold orders for new product applications had increased fairly substantially. Is it fair to say that trend is still continuing? Aoki [A]: Yes, that is correct. In that area, the polyethylene segment is currently undergoing various tests and starting to roll out into the market, so we expect this to grow further going forward. Odaira [Q]: Thank you. The other question is about cash allocation. Please feel free to correct me if I have this wrong. In the explanation, you said you have JPY30 billion in cash on hand, can use about JPY15 billion as working capital, and then it sounded as if the growth pool would essentially be used up entirely. But if you use it all, nothing is left. So is the right reading that the JPY30 billion will be substantially used? Or is it that you keep JPY10 billion to JPY15 billion as a reserve, then use the remaining JPY10 billion to JPY15 billion here as well, and additionally invest from future free cash flow on top of that? Is that the way to think about the investment of this capital? That is my second question. Yamamoto [A]: Yes, let me take this question. First, on cash on hand, as you noted, please think of JPY10 billion to JPY15 billion as the cash we retain in hand to run the business stably. The remainder will be applied to near-term capital investment and other needs. The capital investment we are about to make in the near term will be funded by cash flow we have generated in the past. Naturally, as we continue to run the business, we will continue to generate cash in the future. Of that, 60% of EBITDA will be deployed for further business growth investment going forward. Please understand it in that way. Odaira [Q]: If you carry through exactly this way, then three to five years out, is the right understanding that a cash balance of around JPY15 billion would be sufficient for you? Yamamoto [A]: No, of course as the business grows and sales expand, working capital will also grow accordingly. We have deliberately not included a working-capital allocation out of EBITDA at this point on the slide, but the roughly 60% growth investment pool naturally includes the funds needed to grow sales. So please understand that working capital is partially included in that. Does that make sense? Odaira [M]: I see. Understood. That is all from me. Thank you very much. Moderator [M]: Thank you for your questions. Next, we will introduce text-based questions from Zoom Webinar. Participant [Q]: On page 27, you state that you are targeting annual sales of JPY10 billion for PF36 and PM-90 combined. What is the time horizon you have in mind? If possible, please also share the order outlook for these two models for the current fiscal year. Aoki [A]: Yes, thank you. On the JPY10 billion annual target, we want to aim for the JPY10 billion level on roughly a two-to-three-year horizon.

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On the current fiscal year, to be honest, in H1 we did not win particularly strong orders for the PM and PF machines and the sales did not really materialize. But for H2, we already have reasonable visibility, and we are planning to recover meaningfully. That said, on a sales basis, we are planning and forecasting sales of around JPY1 billion to a little over JPY1 billion. Moderator [M]: Thank you. Are there any other questions? With that, we will conclude the Q&A session. This concludes NISSEI ASB MACHINE's Q2 financial results briefing for the fiscal year ending September 2026. Thank you very much for joining us today despite your busy schedules. [END]

Document Notes 1. 2. 3. 4.

Portions of the document where the audio is unclear are marked with [inaudible]. Portions of the document where the audio is obscured by technical difficulty are marked with [TD]. Speaker speech is classified based on whether it [Q] asks a question to the Company, [A] provides an answer from the Company, or [M] neither asks nor answers a question. This document has been translated by SCRIPTS Asia.

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