During the fiscal year ended March 31, 2026, the global economy remained relatively robust. Although financial markets underwent turmoil at the beginning of said fiscal year due to U.S. tariff policies, the market regained overall stability by fiscal year-end. On the other hand, the Ukraine situation persisted, while geopolitical risks arising from the Middle Eastern affairs remained in place. These factors caused the market environment to remain unstable.

In fiscal 2026, consolidated net sales increased 6.8% compared with the previous fiscal year to ¥118,611 million. Overseas sales increased 10.8% year on year to ¥85,485 million. This represented 72.1% of total net sales, an increase of 2.6 percentage points from the previous fiscal year.

The cost of sales ratio improved year on year, while selling, general and administrative (SG&A) expenses increased year on year. This increase was mainly attributable to growth in shipping expenses, in step with higher net sales, along with higher research and development expenses.

As a result, Komori posted operating profit totaling ¥9,404 million, an increase of 32.2% compared with ¥7,115 million in the previous fiscal year.

Ordinary profit was ¥10,718 million, an increase of 40.8% compared with ¥7,614 million in the previous fiscal year.

As a result of these and other factors, profit before income taxes amounted to ¥10,814 million, an increase of 18.1% compared with ¥9,160 million in the previous fiscal year.

Profit attributable to owners of the parent totaled ¥7,371 million, an increase of 1.7% compared with ¥7,247 million in the previous fiscal year.

Basic earnings per share amounted to ¥138.92, compared with ¥136.60 in the previous fiscal year.

Total assets as of March 31, 2026 stood at ¥178,158 million, an increase of ¥5,212 million, or 3.0%, compared with March 31, 2025.

Key positive factors leading to the increase in total assets included a ¥4,078 million increase in investment securities, a ¥2,149 million increase in inventories, a ¥1,946 million increase in cash and deposits, and a ¥1,578 million increase in notes and accounts receivable—trade, and contract assets. Key negative factors affecting total assets included a ¥6,987 million decrease in securities.

Total liabilities were ¥55,261 million, a decrease of ¥2,185 million, or 3.8%, compared with March 31, 2025.

The primary factors that decreased total liabilities included a ¥10,000 million decrease in the current portion of bonds payable and a ¥5,082 million decrease in electronically recorded obligations—operating. The primary factors that increased total liabilities included a ¥9,000 million increase in corporate bonds, a ¥1,498 million increase in current liabilities—other, a ¥1,401 million increase in deferred tax liabilities, and a ¥716 million increase in contract liabilities.

As of March 31, 2026, total net assets amounted to ¥122,896 million, an increase of ¥7,397 million, or 6.4% year on year.

Key positive factors affecting net assets included a ¥2,933 million increase in retained earnings, a ¥2,844 million increase in valuation difference on available-for-sale securities, and a ¥1,286 million increase in foreign currency translation adjustment.

Taking these factors into account, the equity ratio stood at 69.0%, up 2.2 percentage points from 66.8% as of March 31, 2025. Net assets per share rose ¥139.27 to ¥2,316.06 from ¥2,176.79 at March 31, 2025.

In the Komori Group’s R&D activities, efforts are prioritized in accordance with its business strategies and, therefore, focused on the following subjects due to their higher importance:

1. Developing technologies to increase the productivity and quality of offset printing
2. Developing technologies related to security printing presses;
3. Developing a digital printing system (DPS) boasting high productivity;
4. Developing an innovative printed electronics (PE) technology;
5. Developing environmentally friendly elemental technologies.

The Group has made remarkable accomplishments in each subject. The principal R&D activities conducted during the fiscal year under review are set out below.

(1) Developing technologies to increase the productivity and quality of offset printing

Komori entered into an alliance agreement with Guangzhou Xunyue Software Co., Ltd. (Guangzhou, China; hereinafter “Xunyue”) regarding the collaborative use of KP-Connect. With the printing market in China facing labor shortages, local printing companies have great expectations for labor-saving and automated printing facilities that enable them to counter these issues. With this in mind, the two companies co-developed a new printing business model suited to China’s manufacturing sector by enabling KP-Connect Pro, a production management system developed by Komori, to work in coordination with “XUNYUE MIS,” an MIS software developed by Xunyue. This coordination resulted in the creation of three distinctive features: (1) bidirectional communication in job instruction; (2) real-time visualization of facility operational status; and (3) acquisition of high-precision data independent from hardware. Using this model as a standard, Komori intends to strongly push ahead with a smart-factory transition across the printing industry going forward.

The Company also added LITHRONE GL37 advance (hereinafter “GL37”), an A1-size sheet-fed offset press, to its lineup. GL37 is equipped with high-speed printing capability backed by stable sheet feeding and output performance, which is a hallmark of “advance” series models. It is also expected to help users reduce makeready times, cut back on the number of sheets wasted, and realize a world-leading level of ROI. Furthermore, the GL37’s redesigned operation console offers even more robust support to operators and otherwise enhances operational efficiency. In addition, this model adopts environmentally friendly technologies to curb energy consumption, paper waste and greenhouse gas (GHG) emissions. The maximum paper size the GL37 can accommodate is 620mm × 930mm, meaning that on a single sheet this new model can print up to eight A4-pages alongside color bars.

(2) Developing technologies related to security printing presses

The Komori Group has secured multiple major projects, with the aim of enhancing its technological capabilities in the high security printing sector while accelerating the Group’s global expansion. In the United States, the Group received orders from the U.S. Bureau of Engraving and Printing, which is tasked with the printing of U.S. dollar banknotes, for the delivery of banknote printing facilities. These orders resulted from rigorous bidding and examination procedures which, in turn, awarded high ratings to Komori’s technological reliability and competitiveness. In Malaysia, Komori received orders placed by NexG Berhad for two units of LITHRONE SX29 offset presses. With technological development currently under way to optimize these presses for high-security printing, Komori thus intends to deliver printing facilities capable of achieving high-precision printing that satisfies international standards via the use of cutting-edge automation and quality inspection technologies. At the same time, LITHRONE SX29 offset presses are expected to contribute to the reduction of environmental footprint thanks to their energy-saving design. Furthermore, these presses boast scalability, which enables them to realize higher productivity and short turnarounds, even as they maintain highly sophisticated security functions. Thus, LITHRONE SX29 will be compatible with next-generation printing materials and security technologies. Through these initiatives, the Komori Group is strengthening its technological advantage in the high-security printing sector while strengthening its foundation to successfully meet stringent requirements from customers around the world for quality, environmental friendliness, and security.

(3) Developing a digital printing system (DPS) boasting high productivity

Through the release of J-throne 29, a next-generation DPS, Komori has promoted the commercialization of innovative digital printing technologies and the expansion of its business platforms. In this area, we have secured an order for the very first unit from 1Vision, Inc., a major U.S.-based printing company. Once J-throne 29 is brought on line, this model is expected to facilitate shorter turnarounds, enhance operational efficiency and enable a more flexible production system. In summary, this project marks a milestone in the Company’s efforts to fully penetrate the North American market with our digital printing technologies. Elsewhere, Komori signed an agreement with Imprimerie Edgar for the installation of the first J-throne 29 unit to be used in Europe. The client, based in France, was impressed by a demonstration of the J-throne 29 at an industry trade show, and the agreement reflects the high ratings earned by the model for outstanding printing quality, high productivity, robust environmental performance and its other technological advantages. J-throne 29 is capable of achieving both high productivity, which rivals offset printing, and the flexibility afforded by digital printing. Therefore, this model is suitable for a diverse range of applications, such as commercial printing, and for contributing to the advancement of printing processes. Through these initiatives, the Komori Group will accelerate technological innovation and global expansion in the digital printing field, in addition to stepping up the provision of solutions designed to enable clients to enhance their competitiveness.

(4) Developing an innovative printed electronics (PE) technology

In the PE business, Komori promoted the development of thin-film coating technology and the enhancement of its relevant business structure. These efforts, in turn, are steadily generating results. The Company also expanded testing lines at its Printed Electronics Elemental Technology Development Center (PEDEC), thereby conducting process verification aimed at increasing the sophistication of technologies for forming large-area, highly uniform, ultra-thin films. As a result, the Company was able to establish a testing environment with a slit die coater and a combined system featuring both near infra-red (NIR) curing and hot-air curing. Moreover, tests conducted using this environment confirmed the effectiveness of the new technology for the patterning of printed transparent electrodes and confirmed that it will eliminate the need for the conventional laser scribe process, which had been essential. Looking ahead, the Company will strive to further improve the uniformity of its ultra-thin films through the integration of its proprietary roll coater and NIR technologies while also pursuing high-speed production processes. To this end, the Company will continue to leverage PEDEC to promote development activities targeting broad-ranging fields.

(5) Developing environmentally friendly elemental technologies

In line with its Seventh Medium-Term Management Plan, Komori aims to achieve its target for a 30% reduction in the volume of CO2 emissions arising from the use of its products by the end of fiscal 2030, compared with the levels recorded in fiscal 2022, the benchmark year. To this end, the Company is currently engaged in the development of “advance” series sheet-fed offset printing presses, striving to upgrade them in a phased manner via the installation of a power-saving technology Komori perfected in the previous fiscal year.

Total R&D expenses in the fiscal year under review amounted to ¥4,634 million, an increase of 14.6% year on year. This was equivalent to 3.9% of total net sales.

Total capital expenditure in fiscal 2026 was ¥4,900 million, an increase of ¥2,300 million compared with the previous fiscal year. Komori conducted capital expenditure aimed mainly at developing new businesses. Depreciation and amortization decreased ¥26 million to ¥2,277 million.

As of the end of the fiscal year under review, Komori plans to execute capital expenditure totaling ¥4,200 million going forward for the purpose of, for example, establishing new facilities and repairing existing facilities. The Komori Group intends to secure funds for such undertakings solely via self-financing.

Net cash provided by operating activities in fiscal 2026 amounted to ¥3,533 million, a decrease of ¥13,485 million from ¥17,018 million in the previous fiscal year. Principal cash inflows included the posting of profit before income taxes totaling ¥10,814 million and a ¥2,277 million adjustment for depreciation. Major cash outflows were a ¥5,740 million decrease in trade payables—and income taxes paid of ¥3,294 million.

Net cash used in investing activities was ¥2,908 million, a decrease of ¥1,873 million from ¥4,781 million used in investing activities in the previous fiscal year. Main cash outflows included ¥3,837 million in purchase of property, plant and equipment and intangible assets, along with ¥2,088 million in payments into time deposits. Principal cash inflows included ¥2,122 million in proceeds from withdrawal of time deposits.

Net cash used in financing activities totaled ¥6,072 million, an increase of ¥1,762 million from ¥4,310 million used in financing activities in the previous fiscal year. The principal components of cash outflows included ¥10,000 million in the redemption of corporate bonds, ¥4,433 million in payment of cash dividends, and ¥409 million in repayments of lease liabilities.

As a result of the aforementioned activities, cash and cash equivalents at March 31, 2026 stood at ¥52,851 million, a decrease of ¥4,549 million, or 7.9%, compared with March 31, 2025.

Based on a long-term perspective, Komori remains conscious of maintaining a robust volume of retained earnings with the objective of securing financial and operating foundations. These foundations underpin the Company’s trustworthiness and its ability to achieve future business growth, enabling it to provide government-related agencies with services over the ultra-long term in the security printing press and other business areas. At the same time, the Company positions maintaining the robust and stable return of profits to its shareholders as a key management priority. For the fiscal year ending March 31, 2027, Komori plans to pay annual dividends of ¥75 per common share based on its forecasts for annual operating results. This will comprise an interim cash dividend of ¥35 per common share and a fiscal year-end cash dividend of ¥40 per common share.

Going forward, the business environment surrounding the Company is expected to remain quite uncertain. Komori believes that it will be called upon to exercise nimble judgment and, as necessary, revise the course of its business management in light of geopolitical risks and economic fluctuations. In the printing industry, the volume of printing materials is expected to decrease in the publishing and commercial printing fields. However, the Company expects demand for high-value-added printing and package printing services to remain robust. In particular, demand for package printing and other services has grown stronger and is likely to remain firm in the Asian region.

On the other hand, the printing industry has been confronted by ongoing challenges arising from surges in costs for materials and logistics as well as labor shortages while being called upon to reduce greenhouse gas emissions and otherwise counter climate change. In short, printing companies are expected to take immediate actions to overcome these challenges. Therefore, printing press manufacturers are facing ever-stronger calls for the development of high-value-added functions aimed at improving productivity (e.g., one-pass double-sided printing presses, multi-colored presses and inspection equipment). Desirable features required of printing presses now also include more advanced environmental performance, such as reduced energy consumption.

Well aware of the above environment, Komori is currently implementing the Seventh Medium-Term Management Plan. Over the course of the fiscal year ending March 31, 2027, the final year of this management plan, the Company intends to promote the reform of business operations and the strengthening of operating foundations, which together constitute essential policies of the plan, with the aim of securing a sustainable business management structure. In the offset printing business, Looking ahead, Komori will push ahead with the release of models equipped with double-sided inline coaters, pseudo-embossing functions and other elemental technologies aimed at delivering greater added value through printing services while enhancing the environmental performance of its printing presses.

Moreover, Komori is striving to crystalize its “smart factory” concept centered on “KP-Connect” in order to help customer production sites visualize their operational status, promote automation, and streamline their printing operations. By doing so, the Company will enable customers to maximize productivity, tackle environmental issues and address labor shortage problems. Meanwhile, in the DPS business, Komori has released J-throne 29, a B2-size sheet-fed inkjet digital printing press. This model is capable of achieving a printing speed of 6,000 sheets per hour (single-sided printing; the highest of its kind among Komori’s B2-size printing presses). Thanks to its overwhelming speed and performance attained in defiance of the common-sense assumption regarding digital printing presses, J-throne 29 is expected to empower users to realize a world-leading level of ROI.

With regard to the security printing press business, the Company will further strengthen its security printing technologies that it has long nurtured in the field of banknote printing. At the same time, Komori will strive to deliver innovative solutions capable of protecting national governments, business corporations and individuals from the theft of identity or other types of fraud.

In the printed electronics (PE) business, the Company will promote the development of novel applications via engagement in joint development with partner corporations as well as open innovation involving industry academia collaboration in order to push ahead swiftly with technological development.

With regard to environmental initiatives, Komori will implement such measures as the analysis of climate change-related risks and opportunities based on recommendations from the Task force on Climate-related Financial Disclosures (TCFD), the reduction of CO2 emissions from the Group’s operations as a whole, and the development of environmentally friendly products. These endeavors are expected to enable the Group to secure sustainable growth. Furthermore, Komori has positioned its human resources as the most important management capital in terms of achieving sustainable improvement in corporate value. Accordingly, the Company is striving to enhance its human capital management. Specifically, Komori is developing a working environment that empowers diverse human resources to autonomously achieve personal growth and realize their full potential based on a fundamental concept of “K-Work” (Komori Way Workstyle Reforms), which encompasses three key initiatives: promoting diversity; strengthening human resource management; and creating an employee-friendly workplace.

In addition, Komori upholds nurturing globally capable human resources as one of its top priorities. Moreover, the Company strives to identify issues each division is confronting via, for example, employee engagement surveys, in order to address them and achieve ongoing improvement while stepping up health management. In these ways, Komori aims to increase the productivity of the entire Group and secure its sustainable growth.

Looking ahead, the Group is aware of the possibility of prolonged geopolitical risks in various regions around the world along with the expected impact of U.S. tariffs on the global economy over the long term. However, the Group believes that great uncertainty surrounds these developments and, therefore, has excluded them from current forecasts for consolidated operating results for the fiscal year ending March 31, 2027. Taking the aforementioned factors into account, the Company’s consolidated operating results forecasts include net sales of ¥124,000 million, operating profit of ¥9,500 million, ordinary income of ¥9,200 million, and profit attributable to owners of the parent of ¥7,200 million. These forecasts are based on the assumed exchange rates of USD 1.00 = JPY 145 and EUR 1.00 = JPY 165.