SHIMAMURA (8227) investor relations material

Executive summary

• Net sales reached ¥700,034 million (+5.2% YoY) for the fiscal year ended February 2026, with operating income at ¥61,483 million (+3.8% YoY) and net income attributable to owners at ¥44,460 million (+6.1% YoY), all record highs.

• Comprehensive income increased to ¥48,289 million from ¥42,041 million year-over-year.

• All profit line items achieved the plan, with gross profit margin improving due to better pricing and controlled SG&A expenses despite higher personnel and freight costs.

Financial highlights

• Gross profit: ¥243,904 million (+5.6% YoY, margin 34.8%); Operating margin: 8.8%; Net margin: 6.4%.

• Basic EPS was ¥202.36 (post 3-for-1 stock split), up from ¥189.94.

• Return on equity was 9.0%, and equity-to-asset ratio stood at 88.1%.

• SG&A expenses rose 6.2% YoY, mainly from an 8.1% increase in personnel expenses and a 2.7% rise in advertising.

• Cash and cash equivalents at year-end decreased to ¥127,185 million from ¥206,200 million, mainly due to investing and financing outflows.

Outlook and guidance

• FY2/27 forecast: Net sales expected to rise 4.2% YoY to ¥729,193 million; operating income to increase 8.7% YoY to ¥66,842 million; net income attributable to owners to rise 6.4% to ¥47,321 million.

• Basic EPS is projected at ¥227.92, considering the stock split.

• SG&A expenses projected to grow 3.0% YoY, with personnel expenses up 4.2%.

• Dividend per share forecasted at ¥80 for the full year.