During the fiscal year ended March 31, 2025, the global economy benefitted from a gradual recovery trend. However, the outlook remained unclear due to the prolongation of the geopolitical risks in the Ukraine and the Middle East, in addition to uncertainties that began to loom over the economy following the U.S. presidential election.

In fiscal 2025, consolidated net sales increased 6.5% compared with the previous fiscal year to ¥111,050 million. Overseas sales increased 10.7% year on year to ¥77,128 million. This represented 69.5% of total net sales, an increase of 2.7 percentage points from the previous fiscal year.

The cost of sales represented 64.4% of total net sales, an improvement of 2.4 percentage points year on year, primarily due to the changing sales mix.

Selling, general and administrative (SG&A) expenses increased 9.0% year on year to ¥32,373 million, reflecting such factors as growth in corporate spending on advertising due to the Company’s participation in an international exhibition held in May 2024, higher sales commissions in step with higher net sales, and costs associated with business combinations. The ratio of SG&A expenses to net sales increased 0.7 of a percentage point to 29.2%. As a result, Komori posted operating profit totaling ¥7,118 million, an increase of 45.3% compared with the previous fiscal year.

Ordinary profit was ¥7,617 million, an increase of 12.1% compared with the previous fiscal year.

As a result of these and other factors, profit before income taxes amounted to ¥9,163 million, an increase of 57.8% compared with the previous fiscal year. This was due mainly to the recording of gain on sales of investment securities in the fiscal year under review.

Profit attributable to owners of the parent totaled ¥7,248 million, an increase of 56.2% compared with the previous fiscal year.

Net income per share amounted to ¥136.62, compared with net income per share of ¥86.79 in the previous fiscal year.

Total assets as of March 31, 2025 stood at ¥172,915 million, an increase of ¥5,327 million, or 3.2%, compared with March 31, 2024.

Key positive factors leading to the increase in total assets included an ¥8,358 million increase in cash and deposits; a ¥1,125 million increase in leased assets; a ¥1,050 million increase in machinery, equipment and vehicles; a ¥949 million increase in net defined benefit asset; and an ¥811 million increase in goodwill. Key negative factors affecting total assets included a ¥3,966 million decrease in investment securities, and a ¥3,923 million decrease in notes and accounts receivable-trade, and contract assets.

Total liabilities were ¥57,416 million, an increase of ¥4,294 million, or 8.1%, compared with March 31, 2024. The primary factors that increased total liabilities included a ¥4,152 million increase in contract liabilities, a ¥1,288 million increase in income taxes payable, and a ¥1,077 million increase in noncurrent liabilities-other. The primary factors that decreased total liabilities included a ¥1,776 million decrease in deferred tax liabilities.

As of March 31, 2025, total net assets amounted to ¥115,499 million, an increase of ¥1,032 million, or 0.9% year on year.

Key positive factors affecting net assets included the cancelation of treasury stock totaling ¥1,947 million, an ¥1,873 million increase in retained earnings, and a ¥988 million increase in remeasurements of defined benefit plans. Key negative factors affecting net assets included a ¥3,480 million decrease in valuation difference on available-for-sale securities.

Taking these factors into account, the equity ratio stood at 66.8%, down 1.5 percentage points from 68.3% as of March 31, 2024. Net assets per share rose ¥19.47 to ¥2,176.81 from ¥2,157.34 at March 31, 2024.

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 and SCREEN Graphic Solutions Co., Ltd. (hereinafter, “SCREEN GA”) have entered into an agreement to step up their partnership based on the KP-Connect alliance program. This move led us to launch automated workflow. The printing industry is now being called upon to promote optimal staff allocation and reduce burden placed on operators. This is in conjunction with countermeasures against chronic labor shortages across the entire manufacturing sector, which prompted printing companies to tackle the imminent need to push ahead with digital transformation (DX).

With this in mind, Komori has been promoting automated, labor-saving pre-press solutions via the coordinated use of its “KP-Connect Pro” and “EQUIOS,” a workflow-compatible Raster Image Processer developed by its partner SCREEN GA, which is tasked with delivering pre-press process facilities. These solutions will greatly contribute to the overall optimization of printing operations and productivity enhancement.

The Company renovated the Komori Graphic Technology Center (KGC) in the Tsukuba Plant. As a result, the KGC made a fresh start as a virtual “smart printing factory” (hereinafter the “KGC Smart Factory”). The printing industry is currently facing issues arising from the diversification of printing needs, including those involving small-lot printing with short turnarounds, as well as surging costs for printing supplies and energy, even as it struggles to secure human resources. Against this backdrop, the Komori Group not only endeavors to improve the productivity of its printing machinery itself but also aims to help customers enhance the overall productivity of their printing factories via transition to a “smart factory.” The KGC Smart Factory is equipped with a central control room enabling operators to conduct centralized monitoring of overall factory status and remotely issue orders to control facilities. With “KP-Connect Pro” used as core software, the KGC Smart Factory makes it possible to automatically coordinate all printing workflows, which start with scheduling and range from pre-press, press, and post-press processes, to color management, quality inspections and on-premise logistics.

Komori developed “LITHRONE GLX29 advance,” a 29-inch sheet-fed offset printing press. This model boasts stable sheet feeding and output performance and is capable of high-speed printing, even when printing on thick paper. Thus, “LITHRONE GLX29 advance” is expected to help users reduce makeready times, cut back on the number of sheets wasted, and realize a world-leading level of ROI. In addition, the layout of the model’s information display installed at its operation stand has been updated to offer even more robust support to operators and otherwise enhance their operational efficiency. Furthermore, this model adopts environmentally friendly technologies to curb energy consumption, paper waste and greenhouse gas (GHG) emissions. As such, “LITHRONE GLX29 advance” is an eco-friendly offset printing press.

(2) Developing technologies related to security printing presses

Komori was chosen to receive the Best New Housenote Award under the High Security Printing EMEA program. The award-winning piece was a housenote (a special printing sample) the Company has created to commemorate the centennial of its founding via the use of the same security printing technologies as those used in the production of genuine banknotes. The design utilizes all of the security printing technologies Komori has amassed over the years and was printed using its “CURRENCY LC” offset printing press, the “CURRENCY IC” intaglio press, and the “Impremia IS29s” digital printing press. In addition, printed images on the housenote were created through the integration of such cutting-edge technologies as digital printing and authentication using smartphone apps with proven anti-counterfeiting technology. Thus, Komori demonstrated the future potential of its anti-counterfeiting technology.

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

Komori’s “J-throne 29” is now ready to meet market expectations as it is capable of empowering users to realize a world-leading level of ROI. Komori developed this B2-size sheet-fed UV inkjet digital printing press in the previous fiscal year, unveiling it at drupa2024. In the fiscal year under review, Komori conducted final adjustments of this model to ensure its smooth release to the market. In addition to achieving a printing speed of 6,000 sheets per hour (single-sided printing), J-throne 29 was created by integrating conventional imaging technologies with unique image forming functions developed by the Company. Moreover, this model employs newly developed specialized UV inks compatible with an extensive range of media while boasting high productivity. In May 2025, Komori exhibited this model at China Print 2025 held in Beijing.

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

The Company signed a comprehensive partnership agreement with Yamagata University, updating the previous agreement to expand the scope of partnership to include fundamental academic research, commercialization, human resource exchange and interaction, and the joint use of facilities. To date, Yamagata University and Komori have worked in partnership to take on such R&D subjects as electrode printing for organic ELs and conducive wiring printing for flexible hybrid electronics (FHE). Looking ahead, the Company intends to promote joint R&D of thin-film coating technology, a new technological field, in addition to continuing to work together with this university to develop ultrafine-line circuit printing technologies. Specifically, Yamagata University and the Komori Group are expected to take on the development of materials used for printing and printing equipment, respectively, with their plans calling for jointly designing printing processes and producing prototypes in order to create next-generation solar cells and secondary batteries.

(5) Developing environmentally friendly elemental technologies.

Komori is proactively engaged in R&D centered on countering climate change.

The Company has endeavored to create offset presses capable of achieving both higher printing quality and lower energy consumption by identifying the optimal order of ink rollers, developing highly efficient air systems for blowers and commercializing humidification systems for sheet suppliers. With the installation of these functions, Komori’s offset presses achieved reductions in GHG emissions, in step with decreased energy consumption, even while maintaining high printing quality and robust productivity.

Total R&D expenses in the fiscal year under review amounted to ¥4,043 million, an increase of 8.3% year on year. This was equivalent to 3.6% of total net sales.

Total capital expenditure in fiscal 2025 was ¥2,600 million, an increase of ¥603 million compared with the previous fiscal year. Komori conducted capital expenditure aimed mainly at developing new businesses. Depreciation and amortization increased ¥330 million to ¥2,297 million.

Looking ahead, Komori plans to engage in capital expenditure totaling ¥2,900 million in fiscal 2026.

Net cash provided by operating activities in the fiscal year under review amounted to ¥17,018 million, a turnaround of ¥25,069 million from net cash used in operating activities of ¥8,051 million in the previous fiscal year. Principal cash inflows included the posting of profit before income taxes totaling ¥9,163 million, as well as an ¥8,590 million decrease in trade receivables, and a ¥2,297 million adjustment for depreciation and amortization. Major cash outflows were a ¥1,764 million gain on sales of investment securities, and income taxes paid of ¥1,358 million.

Net cash used in investing activities was ¥4,781 million, a negative turnaround of ¥5,265 million from ¥483 million provided by investing activities in the previous fiscal year. Main cash outflows included ¥2,569 million in payment for acquisition of businesses ¥2,276 million in purchase of property, plant and equipment and intangible assets, ¥2,138 million in payments into time deposits, and ¥1,066 million in purchase of investment securities. Principal cash inflows included ¥1,878 million proceeds from sale of investment securities, ¥968 million in proceeds from withdrawal of time deposits, and ¥443 million in proceeds from sale of property, plant and equipment and intangible assets.

Net cash used in financing activities totaled ¥4,310 million, compared with ¥4,874 million used in financing activities in the previous fiscal year. With the pace of the increase in net cash used slowed somewhat, the volume of the year-on-year increase recorded in the fiscal year under review was ¥564 million smaller than the volume of year-on-year increase recorded in the year earlier. The principal components of cash outflows were ¥3,461 million in the payment of cash dividends, a ¥407 million net decrease in short-term loans payable, and ¥353 million in repayments of lease obligations.

As a result of the aforementioned activities, cash and cash equivalents at March 31, 2025 stood at ¥57,400 million, an increase of ¥7,736 million, or 15.6%, compared with March 31, 2024.

While considering the level of retained earnings required to prudently secure a robust operating platform and ensure future business growth from a long-term perspective, Komori positions maintaining the robust and stable return of profits to its shareholders as a key management priority. For the fiscal year ending March 31, 2026, Komori plans to pay annual dividends of ¥70 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 ¥35 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 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). Also, desirable features required of printing presses now 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, 2026, the interim 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 press business, the Company released LITHRONE GX/G advance EX Edition—a model boasting superiority in terms of environmental performance, as well as improved productivity and operability—in the previous fiscal year. 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. 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 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 industryacademia 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 capital and believes that improving employee engagement is essential to achieving sustainable improvement in corporate value. Accordingly, based on a fundamental concept of “K-Work” (Komori Way Workstyle Reforms), the Company is now engaged in phased reforms involving three key initiatives, namely, developing an environment in which everyone can work in confidence, strengthening human resource management and promoting diversity. In these ways, Komori will strengthen its human capital on a Groupwide basis. The Company will also conduct employee engagement surveys and thereby address issues identified via such surveys. Komori will thus enhance employee engagement, with the aim of preventing the outflow of human resources, improving productivity and achieving even more robust operating results. Going forward, Komori will step up these initiatives to help realize a sustainable society.

Regarding the potential impact of U.S. tariffs, Komori anticipates only a minor effect on its consolidated results. This is due to several factors: the U.S. market consistently accounts for approximately 10% of the Company’s consolidated net sales; major orders for securities printing presses and packaging printing presses have already been received with customers agreeing to bear the tariff burden; and there are no offset printing press manufacturers in the U.S., meaning that European competitors are also subject to the same tariffs.

On the other hand, Komori recognizes that U.S. tariffs may have broader implications for the global economy over the long term. However, given the high level of uncertainty surrounding these developments, the Company has not factored them into its current earnings forecast. Taking the aforementioned factors into account, the Company’s consolidated operating results forecasts include net sales of ¥124,500 million, operating income of ¥9,100 million, ordinary income of ¥8,900 million, and profit attributable to owners of the parent of ¥6,400 million. These forecasts are based on the assumed exchange rates of USD 1.00 = JPY 140 and EUR 1.00 = JPY 150.