Slides
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0 Financial Results For FY2026 - 3Q October, 2026 OSG Corporation
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1 ◆ P2-3 Earnings Highlights ◆ P4-5 Company Overview ◆ P6-7 Financial Summary ◆ P8-9 Sales to Customers ◆ P10-11 Operating Profit ◆ P12-13 Net Sales by Product Segment ◆ P14 Overseas Sales Ratio ◆ P15 Operating Profit Variation ◆ P16 BS Key Metrics and BS Overview ◆ P17 Capital Investment ◆ P18 Forecast for FY2026 ◆ P19 Shareholder Return Policy ◆ P20 Exchange Rate ◆ P21 Selected Financial Data ◆ P22 Expansion of Overseas Business ◆ P23- Medium-term Management Plan Contents
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2 Earnings Highlights（1/2) 37.8billion yen EBITDA +58.9％ YoY 27.5billion yen Operating Profit +100.2% YoY 14.9% ROE +7.3pt YoY 19.2% OPM +7.4pt YoY 143.2billion yen Sales KEY indicators 26.4% EBITDA Margin +5.9pt YoY P/L BS Tungsten Update Record-high Net Sales, Operating Income, Ordinary Income, and Net Income in both 3Q and 9M results. All segments achieved record-high 9M Net Sales and Operating Income. Inventories increased by ¥10.9 billion vs fiscal year-end. Foreign exchange impact: +¥1.6 billion. Primarily driven by increases in raw materials and work-in-progress inventories due to soaring carbide material prices. 70.2% Equity Ratio +2.7pts Vs. Previous FY End 259.72yen EPS +125.2% YoY +23.5% YoYRaised Consolidated Earnings Forecast Net Sales: 193billion yen, OP:36billion yen, OPM: 18.7%, EPS 288.48yen, Annual Dividend Increased to ¥130 per Share Share Repurchase Program (Up to ¥5.0 Billion). Maximum Repurchase Amount: ¥5.0 billion Repurchase Period: October 13, 2026 – November 30, 2026 Method: Market purchases on the Tokyo Stock Exchange (including off- auction trading) Purpose: To enhance shareholder returns and improve capital efficiency
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3 Japan Market conditions remained stable. Profitability improved on higher exports to overseas group companies and pricing actions in the materials business. Asia China: Strong demand from semiconductor equipment, data centers, and automation-related applications. South Asia: Solid demand for semiconductor peripherals and energy- related applications. Earnings Highlights（２/2) The Americas In the U.S., demand expanded in the aerospace & defense, medical, and energy sectors. Supported by a tariff refund exceeding ¥0.9 billion, the segment profit margin reached 29.8% for the quarter. Europe/Africa Strong performance in Europe, led by aerospace & defense, medical, and energy-related operations. German operations also recovered.
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4 Company Name OSG Corporation Headquarters 3-22 Honnogahara Toyokawa-city, Aichi, Japan Foundation March 26, 1938 Capital 13,044 million yen Employees 7,564 (consolidated) 1,852 (non-consolidated) Stock listed Prime Market in Tokyo Stock Exchange Premier Market in Nagoya Stock Exchange (stock code 6136) Company Overview Note regarding forecast ⚫ This material includes forward-looking statements based on information available at the time of release. ⚫ The forecasts and other forward-looking statements are not guarantees of future performance. Actual financial results may differ from the above forecasts due to known and unknown risks, uncertainties and other factors.
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5 5 Company Overview Products ・ Consumable cutting tools used in machine tools ・ Taps account for over 30% market share as world leader ・ High-value cutting tools ・ Excellent after-sales service ・ A global sales & service network across 35 countries Strength Drills Tools to make holes End mills Tools to shape metal Indexable tools Tools to shape metal Taps Tools to cut threads Tools to form threads Rolling dies
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6 Financial Summary (Million yen) 27,492 33,277 31,741 31,699 34,009 37,881 2021 2022 2023 2024 2025 2026-3Q 21.8 23.3 21.5 20.4 21.2 26.4 2021 2022 2023 2024 2025 2026-3Q EBITDA MarginEBITDA 1Q 2Q 3Q 3Q YTD 1Q 2Q 3Q 3Q YTD Net Sales 37,777 39,601 38,615 115,994 42,627 49,466 51,152 143,245 27,250 +23.5% 185,000 77.4% Operating Profit 3,884 5,600 4,275 13,759 6,134 9,527 11,882 27,543 13,783 +100.2% 30,000 91.8% OPM 10.3% 14.1% 11.1% 11.9% 14.4% 19.3% 23.2% 19.2% 7.4pt - 16.2% - Ordinary Income 4,155 5,760 5,072 14,988 6,694 10,445 12,355 29,495 14,506 +96.8% 32,000 92.2% Net Profit Attributable to OSG 2,609 3,874 3,160 9,643 5,040 7,461 8,863 21,364 11,720 +121.5% 21,000 101.7% EPS(yen) 30.73 46.21 38.38 115.32 61.35 90.81 107.56 259.72 144.40 +125.2% 225.60 - EBITDA 7,200 8,920 7,712 23,834 9,624 12,938 15,317 37,881 14,046 +158.9% - - EBITDA Margin 19.1% 22.5% 20.0% 20.5% 22.6% 26.2% 29.9% 26.4% 5.9pt - - - FY26 Forecast Progress RateChange FY25 FY26(Million yen) (%) ※ ※Based on the FY2026 earnings forecast announced on July 10, 2026.
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7 Financial Summary Net Sales Operating Profit & Net Profit Attributable to owners of parent (Million yen) 32,241 35,714 35,546 39,022 34,231 36,406 37,093 39,971 36,717 40,950 37,659 40,190 37,777 39,601 38,615 44,624 42,627 49,466 51,152 4,442 5,403 5,189 6,863 4,513 4,980 4,591 5,714 4,102 5,662 4,694 4,408 3,884 5,600 4,725 6,570 6,134 9,527 11,882 3,459 4,033 3,856 5,185 3,050 3,541 3,453 4,263 3,429 3,788 2,572 3,648 2,609 3,874 3,160 4,690 5,040 7,461 8,863 0 2,000 4,000 6,000 8,000 10,000 12,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY22 FY23 FY24 FY25 FY26 0 10,000 20,000 30,000 40,000 50,000 60,000 Net Sales Operating Profit Net Profit Attributable to owners of parent
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8 Sales to Customers by Geographical Segment Change in 1Q 2Q 3Q 3Q YTD 1Q 2Q 3Q 3Q YTD Local currency Japan 12,490 13,133 12,095 37,719 12,686 14,975 15,857 43,520 5,800 +15.4% - The Americas 8,286 8,559 8,517 25,363 9,007 10,852 11,766 31,626 6,262 +24.7% +15.8% Europe/Africa 8,397 9,276 9,231 26,905 10,281 11,904 11,824 34,009 7,104 +26.4% +13.0% Asia 8,603 8,631 8,770 26,005 10,651 11,733 11,704 34,089 8,083 +31.1% +21.6% Consolidated 37,777 39,601 38,615 115,994 42,627 49,466 51,152 143,245 27,250 +23.5% - Change FY25 FY26 (Million yen)
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9 Sales to Customers by Geographical Segment (Million yen) 11,686 12,915 12,038 14,218 11,995 12,057 12,274 13,291 11,375 13,090 12,047 14,004 12,490 13,133 12,095 13,987 12,686 14,975 15,857 5,575 6,749 7,507 8,012 7,158 7,754 8,288 8,925 8,441 9,184 8,614 8,297 8,286 8,559 8,517 9,649 9,007 10,852 11,7666,400 7,492 7,050 8,020 7,618 8,513 8,365 9,092 8,825 9,652 8,624 9,434 8,397 9,276 9,231 10,712 10,281 11,904 11,824 8,578 8,556 8,949 8,771 7,459 8,081 8,164 8,661 8,074 9,022 8,373 8,455 8,603 8,631 8,770 10,275 10,651 11,733 11,704 0 10,000 20,000 30,000 40,000 50,000 60,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY22 FY23 FY24 FY25 FY26 Asia Europe/Africa The Americas Japan
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10 Operating Profit by Geographical Segment 1Q 2Q 3Q 3Q YTD 1Q 2Q 3Q 3Q YTD Japan 1,846 2,233 1,700 5,780 2,371 4,011 4,119 10,502 4,721 +81.7% margin 10.2% 11.7% 9.3% 10.4% 12.3% 18.0% 17.7% 16.2% 5.8pt The Americas 684 1,287 1,134 3,106 1,497 1,971 3,585 7,055 3,948 +127.1% margin 8.1% 14.8% 13.1% 12.0% 16.3% 17.0% 29.8% 21.5% 9.5pt Europe・Africa 326 756 569 1,653 730 1,559 1,469 3,758 2,105 +127.3% margin 3.8% 8.0% 6.1% 6.0% 7.0% 12.9% 12.2% 10.9% 4.8pt Asia 1,037 1,209 1,069 3,316 1,927 2,413 2,731 7,072 3,756 +113.3% margin 10.9% 12.5% 11.0% 11.5% 16.2% 18.2% 20.1% 18.3% 6.8pt Total 3,895 5,486 4,474 13,857 6,526 9,956 11,905 28,388 14,531 +104.9% Eliminations -11 113 -199 -97 -392 -428 -23 -845 -748 - Consolidated 3,884 5,600 4,275 13,759 6,134 9,527 11,882 27,543 13,783 +100.2% Change FY25 FY26 (Million yen) * Operating profits margin as % of sales (external sales + internal area transfers)
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11 1,750 2,373 2,333 3,160 2,073 1,784 1,657 2,458 1,523 2,044 1,717 1,921 1,846 2,233 1,700 3,103 2,371 4,011 4,119 907 898 1,168 1,354 1,100 1,… 1,142 1,006 942 1,307 1,026 1,134 684 1,287 1,134 1,135 1,497 1,971 3,585 558 911 547 801 718 988 900 1,068 782 1,081 702 550 326 756 569 1,027 730 1,559 1,469 1,534 1,655 1,556 1,645 950 1,114 1,023 1,357 1,057 1,242 1,047 806 1,037 1,209 1,069 1,477 1,927 2,413 2,731 (308) (436) (4… (98) (329) (177) (132) (176) (203) (12) 200 (3) (11) 113 (199) (173) (392) (428) (23) (1,000) 1,000 3,000 5,000 7,000 9,000 11,000 13,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY22 FY23 FY24 FY25 FY26 連結調整 Asia Europe/Africa The Americas Japan Operating Profit by Geographical Segment (Million yen)
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12 1Q 2Q 3Q 4Q 1Q 2Q 3Q Taps 12,250 13,057 12,945 15,434 38,254 33.0% 14,144 16,478 16,663 47,286 33.0% 9,031 +23.6% End mills 6,901 7,173 7,127 8,097 21,202 18.3% 8,009 9,522 9,709 27,241 19.0% 6,038 +28.5% Drills and Others 11,712 12,227 12,087 13,799 36,027 31.1% 13,206 15,382 16,219 44,808 31.3% 8,780 +24.4% Rolling dies 2,781 2,736 2,680 2,798 8,198 7.1% 2,884 3,100 3,135 9,120 6.4% 922 +11.2% Gauges 517 538 549 538 1,605 1.4% 495 606 625 1,727 1.2% 121 +7.6% Sub total 34,164 35,733 35,390 40,668 105,288 90.8% 38,739 45,090 46,353 130,184 90.9% 24,895 +23.6% Machine 1,344 1,600 822 1,516 3,767 3.2% 1,008 1,271 756 3,036 2.1% -731 -19.4% Other 2,269 2,267 2,401 2,439 6,938 6.0% 2,878 3,104 4,042 10,024 7.0% 3,086 +44.5% Sub total 3,613 3,868 3,224 3,955 10,705 9.2% 3,887 4,375 4,798 13,061 9.1% 2,355 +22.0% 37,777 39,601 38,615 44,624 115,994 100% 42,627 49,466 51,152 143,245 100% 27,250 +23.5%Total Change FY25 3Q YTD FY26 3Q YTD Net Sales by Product Segment (Million yen)
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13 11,397 12,570 12,590 13,815 11,276 12,070 12,460 13,242 12,159 13,782 12,629 13,115 12,250 13,057 12,945 15,434 14,144 16,478 16,663 9,162 10,302 10,222 11,295 9,800 10,630 10,833 11,622 10,964 11,943 10,895 12,301 11,712 12,227 12,087 13,799 13,206 15,382 16,219 5,844 6,597 6,722 7,219 6,685 6,740 7,050 7,506 7,038 7,820 7,069 7,438 6,901 7,173 7,127 8,097 8,009 9,522 9,709 3,459 3,486 3,388 3,832 3,916 4,215 4,027 4,587 3,761 4,585 4,359 4,551 4,130 4,406 3,774 4,494 4,382 4,982 5,424 2,377 2,757 2,621 2,859 2,551 2,749 2,721 3,013 2,793 2,817 2,705 2,783 2,781 2,736 2,680 2,798 2,884 3,100 3,135 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY22 FY23 FY24 FY25 FY26 Taps Drills and Others End Mills Others Rolling Dies Net Sales by Product Segment (Million yen)
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14 Japan 29.7% The Americas 22.5% Europe/Africa 23.0% Asia 24.8% FY26-3Q Overseas Sales Ratio Overseas Sales Ratio 70.3% (Million yen) 50,960 54,590 54,266 42,405 48,243 50,003 48,671 49,835 50,884 42,753 21,525 22,869 22,961 18,590 22,003 28,281 32,871 34,850 34,956 32,168 17,884 21,692 20,698 19,161 23,955 27,929 32,268 35,694 36,840 32,885 29,827 32,216 29,037 24,231 31,953 36,310 33,891 35,137 37,937 35,437 57.6% 58.4% 57.3% 59.4% 61.8% 64.9% 67.0% 68.0% 68.2% 70.3% 0% 10% 20% 30% 40% 50% 60% 70% 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26-3Q Japan The Americas Europe/Africa Asia Overseas Sales Ratio
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15 Operating Profit Variation （Million yen） Operating Profit FY25-3Q Operating Profit FY26-3Q
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16 Equity 193,857 213,626 Long-term Liabilities 48,633 42,583 Current Liabilities 25,208 29,571 2025 2026 -3Q 285,780 Fixed Assets 119,361 121,023 Others 5,364 6,164 Inventories 59,490 70,434 Accounts Receivable 31,133 32,186 Cash and Deposits 52,350 55,971 2025 2026 -3Q 285,780 BS Key Metrics and BS Overview 55,971 million yen Cash and Time Deposits (End of FY25 : ¥52,350M) 41,956 million yen Interest-bearing Debt (End of FY25 : ¥44,957M) 2.1 months Receivable Turnover Period (End of FY25 : 2.4months) 4.5 months Inventory Turnover Period (End of FY25 : 4.5months) BS Key Metrics 14,014 million yen Net Cash （End of FY25 : ¥7,392M) 70.2% Equity Ratio (End of FY25 : 67.5％) Assets +3,621 +1,052 +10,944 +800 +1,662 Liabilities・Equity Consolidated Balance Sheet 267,699 +18,080 +18,080 267,699 +4,362 -6,050 +19,769
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17 Breakdown Including 0.7 billion yen carried over from FY25. New factory phase II for carbide end mills, machinery and equipment, etc. FY26 Capital Investment Forecast 12.0 billion yen Capital Investment CAPEX result 9,157 million yen Depreciation result 9,747 million yen 9,494 11,464 17,139 9,895 5,555 8,600 10,580 15,509 14,324 9,157 0 4,000 8,000 12,000 16,000 20,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026-3Q CAPEX（Million yen） 12,000 8,612 9,100 9,522 10,518 10,591 10,498 11,037 11,824 12,598 9,747 0 3,000 6,000 9,000 12,000 15,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026-3Q Depreciation（Million yen） 12,200
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18 Revision of FY2026 Financial Forecast Net Sales 185,000 193,000 8,000 +4.3% Operating Profit 30,000 36,000 6,000 +20.0% as % of sales 16.2% 18.7% +2.4% - Ordinary Profit 32,000 38,000 6,000 +18.8% Net Income Attributed to OSG 21,000 24,000 3,000 +14.3% EPS (yen) 255.60 288.48 32.88 +12.9% Consolidated FY26 Previous Forcast FY26 Revised Forecast Change Net Sales 60,000 Operating Profit 6,500 as % of sales 10.8% Ordinary Profit 15,000 Net Income 12,900 EPS (yen) 156.95 Parent Company Forecast for FY26 Exchange Rate Assumptions (After Revision)： 1US$=155円 1Euro=180円 * Previous forecast is based on the earnings forecast announced on July 10, 2026. ※Non-consolidated earnings forecast remains unchanged. （Million Yen)
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19 11 14 23 28 28 28 3911 22 37 32 32 32 9128 0 30 60 90 120 150 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Interim Dividend Year-end Dividend Commemorative Dividend (Year-end) Shareholder Return Policy Dividend Dividend Payout Ratio Total Payout Ratio Full-Year Dividend ¥130 (+¥15 vs. Previous Forecast) Higher of 45% payout ratio or DOE 3.5% ￥88 Yen 88th Anniversary Commemorative Dividend（Year-end） 38.0% 32.0% 35.0% 40.2% 40.3% 50.8% 45.0% 70.8% 40.3% 202.9% 85.3% 65.7%1.5% 2.4% 3.5% 3.2% 3.2% 4.0% 3.5% or more 0% 2% 4% 6% 0% 100% 200% FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Dividend Payout Ratio Total Payout Ratio DOE ※ ※FY2026 total payout ratio includes the impact of the share repurchase program (up to ¥5.0 billion) announced on October 9, 2026.
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20 Exchange Rate (Yen) 1US$ 1Euro 1RMB 1US$ 1Euro 1RMB FY22 3Q 126.15 135.31 19.20 138.63 139.03 20.04 FY22 130.61 137.60 19.42 138.87 143.58 19.43 FY23 3Q 137.68 149.36 19.56 146.20 159.84 20.03 FY23 140.44 151.87 19.79 147.07 161.51 20.60 FY24 3Q 151.49 164.35 20.99 144.80 160.44 20.40 FY24 150.88 163.71 20.98 150.74 159.20 20.80 FY25 3Q 148.82 164.51 20.57 146.92 171.47 20.63 FY25 149.91 167.91 20.81 156.63 181.60 22.13 FY26 3Q 158.76 184.88 23.19 160.02 185.50 23.78 Period average rate Closing rate as of the period end
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21 Selected Financial Data (Consolidated) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026-3Q Net sales (mil.yen) 111,917 105,561 120,198 131,368 126,964 104,388 126,156 142,525 147,703 155,517 160,619 143,245 Sales growth rate (％) 10.8% -5.7% 13.9% 9.3% -3.4% -18.0% 20.9% 13.0% 3.6% 5.3% 3.3% 23.5% Cost of sales (mil.yen) 61,865 59,179 69,711 74,833 73,281 65,715 76,969 83,459 87,254 92,042 94,800 78,871 Gross profit (mil.yen) 50,051 46,382 50,486 56,535 53,682 38,673 49,186 59,065 60,448 63,475 65,819 64,373 SG&A expenses (mil.yen) 28,454 28,135 31,349 34,015 34,128 30,276 33,081 37,166 40,648 44,606 45,488 36,830 Operating Profit (mil.yen) 21,597 18,246 19,137 22,520 19,554 8,396 16,105 21,898 19,800 18,868 20,330 27,543 Ordinary Profit (mil.yen) 21,510 17,813 19,144 22,567 19,710 8,950 16,141 23,648 21,350 19,825 22,354 29,495 Net Profit (mil.yen) 12,518 10,134 13,993 14,710 13,686 5,639 10,989 16,534 14,307 13,439 14,334 21,364 Gross profit margin (％) 44.7% 43.9% 42.0% 43.0% 42.3% 37.0% 39.0% 41.4% 40.9% 40.8% 41.0% 44.9% SG&A to Sales ratio (％) 25.4% 26.7% 26.1% 25.9% 26.9% 29.0% 26.2% 26.1% 27.5% 28.7% 28.3% 25.7% Operating Profit margin (％) 19.3% 17.3% 15.9% 17.1% 15.4% 8.0% 12.8% 15.4% 13.4% 12.1% 12.7% 19.2% Ordinary Profit margin (％) 19.2% 16.9% 15.9% 17.2% 15.5% 8.6% 12.8% 16.6% 14.5% 12.7% 13.9% 20.6% Net Profit margin (％) 11.2% 9.6% 11.6% 11.2% 10.8% 5.4% 8.7% 11.6% 9.7% 8.6% 8.9% 14.9% Average FX rate: 1USD (yen) 121.03 109.78 112.33 110.53 109.36 106.94 109.41 130.61 140.44 150.88 149.91 158.76 Average FX rate: 1Euro (yen) 134.92 121.39 126.20 130.68 122.53 121.60 130.04 137.60 151.87 163.71 167.91 184.88 Total assets (mil.yen) 155,129 156,081 166,712 178,020 190,414 200,112 209,757 228,852 250,124 257,256 267,699 285,780 Total shareholders' equity (mil.yen) 102,566 92,216 115,810 125,332 129,078 129,338 143,811 164,659 181,561 166,633 180,811 200,694 Net Profit per share (yen) 131.78 110.59 153.70 150.47 140.06 57.94 112.63 171.54 149.29 148.94 172.11 259.72 Cash dividends per share (end of Q3) (yen) 26.00 22.00 21.00 22.00 23.00 11.00 14.00 23.00 28.00 28.00 28.00 39.00 (year-end)(yen) 20.00 28.00 25.00 25.00 24.00 11.00 22.00 37.00 32.00 32.00 60.00 (fcst)91.00 Total shareholders' equity per share (yen) 1,079.12 1,024.34 1,191.65 1,279.29 1,328.08 1,327.22 1,472.45 1,721.14 1,892.35 1,962.21 2,200.98 2,413.63 Average number of shares (ths) 94,991 91,640 91,044 97,761 97,716 97,335 97,573 96,388 95,838 90,233 83,289 82,261 ROA（operating profit basis） (％) 14.5% 11.7% 11.9% 13.1% 10.6% 4.3% 7.9% 10.0% 8.3% 7.4% 7.7% 13.3% ROE (％) 12.9% 10.4% 13.5% 12.2% 10.8% 4.4% 8.0% 10.7% 8.3% 7.7% 8.3% 14.9% Equity ratio (％) 66.1% 59.1% 69.5% 70.4% 67.8% 64.6% 68.6% 72.0% 72.6% 64.8% 67.5% 70.2% Total asset turnover 0.75 0.68 0.74 0.76 0.69 0.53 0.62 0.65 0.62 0.61 0.61 0.69 Operating CF (mil.yen) 19,588 16,333 20,820 20,310 19,261 17,038 26,982 20,175 23,331 28,557 26,389 - Investing CF (mil.yen) -16,976 -16,843 -7,566 -13,351 -20,314 -17,133 -6,961 -12,170 -8,543 -21,741 -13,976 - Financing CF (mil.yen) -6,216 -778 -11,137 -4,723 3,465 9,658 -14,264 -14,740 -3,831 -7,985 -15,035 - Cash flow margin (％) 17.5% 15.5% 17.3% 15.3% 15.1% 16.3% 21.4% 14.2% 15.8% 18.4% 16.4% -
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22 Headquarters Sales Office / Plant 35Countries 239sites G L O B A L N E T W O R K Expansion of Overseas Business
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23 AE-LNBD-N DLC Coated Carbide End Mill OSG Corporation | Product Overview Medium-term Management Plan Beyond the Limit 2027 Stage2 FY2025～FY2027
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24 -100 0 100 200 300 400 500 -500 0 500 1000 1500 2000 2500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Transition（Establishing a Solid Foundation for the Next Stage of Growth） Established a global network Achieve a stable and balanced business portfolio in terms of both geography and products through M&A strategy Supporting our customers in their challenges, we aim to achieve a profitable and sustainable future together. World’s top manufacturer of hole-making cutting toolsGlobal Company Essential Player Japan 41% Asia 23% Americas 18% Europe 18%Taps 32% Drills 28% End Mills 21% Others 19% FY2020
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25 World’s top manufacturer of hole-making cutting tools Global Company Essential Player Establishing a balanced business foundation across regions and products Through strategic regional expansion and diversification of key industries, we have strengthened our global presence and achieved top-tier growth in the cutting tool industry with a well-balanced product portfolio beyond taps. We are also steadily building a robust foundation for sustainable growth. Regional Sales trend (Actual Results) World’s top manufacturer of hole-making cutting tools Global Company Essential Player Product Sales trend (Actual Results) 百万円百万円 0 50,000 100,000 150,000 2009 2014 2019 2025 Japan Asia The Americas Europe 0 50,000 100,000 150,000 2009 2014 2019 2025 Taps End Mills Drills Others
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26 0 1 2 3 4 5 0 10 20 30 2009 2014 2019 2025 Sales OP（Right Axis） (¥bn) 0 1 2 3 4 5 0 10 20 30 40 2009 2014 2019 2025 Sales OP（Right Axis） (¥bn) 56% 0% 20% 40% 60% 80% 100% 2017 2021 2025 26.0% 0% 10% 20% 30% 40% 50% 60% 2017 2021 2025 Performance Trends by Region and Product Our business has grown significantly outside Japan, with particularly strong expansion in taps and carbide drills—key tools for hole- making applications. Net Sales by Region OP Ratio Net Sales by Product Market Share Carbide Drills Net Sales Market Share in Japan The Americas Europe・Africa Asia（excluding Japan and Korea） Taps Net Sales Market Share in Japan (¥bn) (¥bn) (¥bn) (¥bn) (¥bn) Source: Market share data for Japan is based on statistical surveys by the Japan Machine Tool Builders' Association. Maintain high Market Share Increasing Market Share 0 1 2 3 4 5 0 10 20 30 40 2009 2014 2019 2025 Sales OP（Right Axis） (¥bn) 0 20 40 60 2009 2014 2019 2025 0 20 40 60 2009 2014 2019 2025
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27 【Long-term Vision】 To become an essential player that contributes to the global manufacturing industry towards a carbon-neutral era Beyond the Limit Beyond the Limit 2022-2024（Stage1） Beyond the Limit 2025-2027 （Stage2） Beyond the Limit 2028-2030（Stage3） Efforts to improve profitability Expansion of high value-added products centered on A-brands Expansion of sales of micro and precision tools. Cost Improvement through Productivity and Operational Efficiency Review of product series and pricing Reduction of SG&A Ratio Implement BS management measures 1 2 3 4 5 6 ROE Over 10% OP Ratio Over 16% We will continue to deliver solid value in a rapidly changing market environment, while driving operational efficiency to build a resilient organization capable of generating sustainable profits. 2027/11 Plan
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28 Tap Micro and precision tools DIA/CBN Fastener product Coating Through quality improvements and the launch of competitive new products, development, engineering, manufacturing, and sales will work as one team to expand market share. In addition, we will promote the A-brand high value-added series, aiming to achieve a 40% global market share in taps. By strengthening the cross-functional GIGS Sales Group and launching new products, we will grow sales of micro and precision machining tools. In addition, we will pursue new business opportunities beyond existing industries, such as the lens industry, primarily through our group companies specializing in diamond tools. This product has the longest history after our founding product, taps. By reviewing manufacturing processes and the supply chain, we will strengthen price competitiveness and further accelerate global expansion. We aim to double sales while also improving profitability. The high value-added coating business is expected to expand over the medium to long term. In addition to contributing to sales of its own products through superior coating development, the company will also develop job coating services for a variety of products other than tools. Core business Driving growth Focused business For future growth be connected to Expansion of Business Domain Product Strategic policy Major Industries Electronic Components Energy Mobility General Parts Electronic Components Aircraft Energy Mobility Medical Molds General Parts Aircraft Energy Mobility General Parts Electronic Components Medical Molds Tools General Parts Medium-Term Management Plan Stage2 Outline (1/2) – Growth Strategy
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29 Operation Organizational and human capital Sustainability Financial and Capital Management In response to labor shortages, we will leverage digital technologies to simplify and streamline production and sales processes, thereby improving productivity and profitability. At the same time, we will promote more efficient and labor-saving production systems through the introduction of in-house developed manufacturing equipment and the utilization of multi-tasking machines, building a flexible and resilient business foundation. We will promote human resource initiatives that maximize the value of each employee by ensuring the right people are in the right roles and by developing talent that enhances autonomy and organizational capability. By creating a workplace where employees feel engaged and can take on challenges with confidence, and by continuing to embrace change in an ever-evolving social environment, we aim to achieve shared growth for both employees and the company and enhance corporate value. Improve profitability through growth strategies for existing businesses and aggressive growth investments including M&A. Aim to improve capital efficiency and achieve ROE of 10% by reducing the cost of shareholders' equity through shareholder returns and IR activities. Strategic policy Initiative • Improvement of business efficiency • Responding to DX innovation • Information Security • Enhancement of human resources' capabilities • Development of a rewarding workplace environment • Improvement of engagement • Reduction of CO2 emissions • Calculation of the carbon footprint • Establishment of an optimal capital structure • Strategic investment in growth sectors • Enhancement of shareholder returns Area KPI（FY2027） ROE over10％ 20％ We aim to reduce CO₂ emissions by 20% by FY2030 compared with FY2024 and achieve carbon neutrality by 2050. To this end, we will reduce Scope 1 and 2 emissions, calculate Scope 3 emissions, and visualize environmental impacts by calculating the carbon footprint of our core products, while reducing electricity consumption through operational improvements and increasing the use of renewable energy to realize a circular economy. Medium-Term Management Plan Stage2 Outline (2/2) – Strengthen management foundation
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30 Driving growth beyond customer industries by expanding existing markets and exploring high- potential fields like healthcare, mobility, AI, energy, and space. Business Opportunities and Growth Area *All images of each industrial field are for reference only. High potential fields Existing market Image Nuclear Power BEV・HEV・FCV Gigacast Offshore Wind evTOL Drones for logistics Automotive Cameras Agriculture Shipbuilding Aircraft SatelliteRocket Dental Implants Intraocular lenses Artificial joints Surgical Robots 5G Base Station Connectors 5G Components AI Data Center FA Aerospace Field Medical Field 5G and Semiconduct or Field Energy & Environment (Heavy Electric) Mobility Fields Main Industries demanding Micro and Precision Machining Projectile Smart phone lens Glasses Humanoid Robot
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31 The A Brand ADO-MICRO (Small diameter carbide drill with oil hole)A-TAP The A-brand was launched in 2015 as OSG's flagship product, offering high quality and high performance at a low price. Starting with A-TAP , the lineup has since expanded to include A-DRILL and A-ENDMILL and continues to grow. Expanding sales of high value-added products centered on the A-brand Point 2Point 1 40% market share by creating products the world demands. • Few competitors offer small- diameter drills with oil holes. • High value-added product enables premium pricing. • In Europe, where machining efficiency is prioritized, machines with internal coolant are widely used, and our products are highly rated. 【Strength of ADO-MICRO】【Strengths of A-TAP】 • Delivers top performance on advanced machining centers, compatible with various equipment. • Suitable for a wide range of materials. • Eco-friendly design with excellent chip evacuation and wear- resistant coating for long tool life. Expand market share in the small-diameter field with new products. New A-brand products are released in short cycles. The A-brand is highly profitable.
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32 0% 5% 10% 15% 20% 0 10 20 30 2016 2020 2025 2030 Sales OPM 0 1 2 2015 2020 2025 2030 Japan Overseas Micro and Precision machining（Diamond tools, Medical） Medical Sales Outlook for Medical IndustrySales Outlook of Diamond tool Diamond tools Related Group Companies Application Market Focus Area • OSG • Wingilt Limited, etc Dental prosthetics, artificial bones, artificial joints, etc. Japan, Europe, North America, South Asia Related Group Companies Application Market Focus Area • OSG Diamond Tool Co., Ltd. • Contour Group • Fiudi S.R.L. , etc Semiconductor equipment components, Inspection equipment components, Lenses, Precision molds, Medical devices, Automotive & aerospace parts Japan, Taiwan, South Asia, China Medical-related Business Crowns, Bridges Result Objective Targeting a 1.5× increase in dental tool sales by 2030 compared to 2024. Growing awareness of oral health’s impact on overall health and QOL is driving demand for preventive and cosmetic dentistry. [Japan] Iinsurance coverage for crown treatments will expand to nearly all cases under the 2026 medical fee revision.. Ultra-small monocrystalline ball end mill Diamond Tool Business Artificial joints Products Examples of Workpiece Trend Business Diamond tools are mainly used for nonferrous and composite materials, but their applications are not limited to precision machining. Recent advances in vibratory cutting technology now allow machining of ferrous materials, significantly expanding the market beyond previous expectations. Catalog We published a textbook and catalog to promote correct understanding of diamond tools. By addressing misconceptions about price, delivery, and handling, we aim to create new demand and support domestic manufacturing and our business growth. Business Unique geometries and coatings for all dental prosthetic materials. Compatible with CAD/CAM systems, offered globally. [Japan] 60% market share in dental tools. 【Winglit】Medical tool maker founded in 1975 (acquired in 2017) Result Objective ¥bn MEUR Mechanical pencil lead: 0.5 mm At 500x Capex Strengthening processing and inspection capabilities to meet growing precision requirements in semiconductor and optical component markets. Regrind The diamonds on the cutting edge can be reused through regrinding, while tip- type tools mounted on the shank or base material allow for replacement of the diamond segments. Result Objective ¥bn Aiming for sales of 10 billion yen in 2030 0 3 6 9 2015 2020 2025 2030 Japan Overseas
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33 0% 10% 20% 0 2,000 4,000 2025 2027 2030 Sales 営業利益率 0% 20% 40% 60% 0 1,000 2,000 3,000 2025 2027 2030 Sales OPM Molds Electronic Components Medical General Parts Cutting Tools Coating (Job Coating Business) Application Market Germany India Turkey Vietnam Focus Area Coating business Global Network Related Group Companies OSG Coating Service（Japan） Taiho Coating Service（Taiwan） Primcoat PVD Technology（India） Perform Coat（USA, Swizerland） PRIMUS COATING（Germany), etc Coating companies in 29 locations across 16 countries (25 consolidated, 4 non-consolidated) • Primus Freiburg commenced operations in Freiburg, Germany, in March 2025. • Developed large furnace for die-cast mold coating (max 2 ton) →Added a coating furnace to meet strong demand. • Expansion into an Oligopolistic Market Coating Business Shifts to Molds While initial investment is required, the high unit price of mold coatings compared to tools enables ROI in about 5 years. Expansion of coating business in Germany Fourth coating plant started operations in India ★ ★ ★ ★ Ahmedabad, Gujarat Started operations in May 2026 Surrounded by leading car manufacturers (35–100 km range) ✓ India's job coating market exceeds 70 million USD. Source of Competitive Advantage（How to Win） 34 coating sites in 16 countries support customers' global expansion High-quality coatings comparable to specialized providers In-house coating equipment enhances cost competitiveness Efficient production using idle capacity from mold coating lines ✓ Germany’s Job coating market exceeds 200 million USD. Result Result Objective Objective K USD K EUR
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34 0 50 100 150 200 2025 2027 2030 Heavy electric machinery and semiconductors SemiconductorsHeavy electric machinery • Electric furnace construction is expanding worldwide due to rising demand and high-efficiency, eco-friendly models will follow. • Demand for our Christmas cutters used in power generation turbines exceeds current production capacity. ⇒ Production capacity +75% vs. FY2025 start by the end of the medium-term plan Demand for semiconductors will keep rising with global digitalization. Semiconductor manufacturing equipment requires high precision, corrosion and heat resistance, plasma durability, and cleanliness. As a result, advanced materials like carbide, ceramics, quartz, and high-purity glass are used. Some are classified as “hard and brittle materials,” which combine high hardness with low impact resistance. Trend Power Consumption Increasing Due to AI Growth, Cloud Services, and Extreme Weather. 6C x OSG Brand ・Launched the new 6C x OSG brand to enable high-efficiency, high-precision direct machining of hard-brittle materials, reducing both processing time and cost. Issue ・Cutting and EDM are slow for hard-brittle materials, reducing productivity. Solution Trend India Market Sales Outlook of Christmas Cutters in India Result Objective M INR • Orders secured from India’s largest government-backed power equipment manufacturer. • Power business expanding across India, the Middle East, and Africa, supporting long-term growth. ⇒ Expansion of Reconditioning Capacity in India
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35 Target-Industry Portfolio ・Promote the transformation to a balanced customer industry portfolio that is less susceptible to business environment fluctuations. ・Improve profitability by increasing the sales ratio of A-brand and micro and precision tools. micro & precision applications micro & precision applications Beyond the Limit 2022-2024（Stage1） Beyond the Limit 2025-2027（Stage2） Beyond the Limit 2028-2030（Stage3） 23％ 16％ General Parts (including micro & precision tools) Automotive Aircrafts and Energy micro & precision applications 40％ 45％ 15％ Before After 25％ 20％ ※Classification updated to reflect expansion beyond automotive, in response to customer trends. Major Automotive Automotive parts and General parts※ 18％ 20％ 15％ 17％ 48％43％ 15％ 40％ micro & precision applications
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36 Financial and Capital Policy（ Current Situation ） PBR*2 ROE*3 1.5 7.6% 8.3% 14.0% FY2025 FY2026-3Q Driving Sustainable Growth and Capital Efficiency to Achieve ROE Over 10% in Stage 2 *1: Equity Spread ＝ ROE ー Cost of Equity Aim for ROE that exceeds the cost of equity while reducing it. （＝*Maximize equity spread) *2: PBR =Market capitalization (excluding treasury shares) ÷ Shareholders’ equity *3: ROE =Net income attributable to owners of the parent ÷ Shareholders’ equity *4: PER =Market capitalization (excluding treasury shares) ÷ Net income attributable to owners of the parent Note 1: Market Capitalization = Share price (month-end closing price at fiscal year-end or quarter-end) × Number of shares outstanding (excluding treasury shares, at fiscal year-end or quarter-end) Note 2: Shareholders’ Equity = Total net assets − Stock acquisition rights − Non-controlling interests. Average of beginning and end of the period. Note 3: Financial figures such as shareholders’ equity are as of Aug. 31, 2026. 9.2% ROE PER Cost of Equity including expected growth rate （=Inverse of PER *4 ） 2.1 2.1 1.9 1.7 1.4 1.2 1.2 1.0 0.9 1.1 1.5 0.0 0.5 1.0 1.5 2.0 2.5 PBR 10.4% 13.5% 12.2% 10.8% 4.4% 8.0% 10.7% 8.3% 7.7% 8.3% 14.0% 0% 5% 10% 15% 20.1 15.9 15.2 15.9 32.6 14.6 11.2 12.3 11.1 13.2 10.8 0 10 20 30 40
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37 Financial and Capital Policy Reform the balance sheet to optimize growth investment and enhance shareholder returns Cash equivalent Operating capital Fixed assets Debts Net assets • WACC reduction through debt utilization. • Optimize capital structure. • Reducing the Cost of Shareholders' Equity through IR Activities. • Strengthen shareholder returns. (increase dividend payout ratio, share buybacks) • Growth investments（M&A、R&D, Capital investment）and shareholder returns. • Review of cash allocation within the group. • Shorten CCC and generate cash. （Inventory reduction, review of collection and payment sites) 【 Inventory turn over target 】 FY2024 4.4 months ⇒ FY2030 3.5 months • Capital investment benchmarked against depreciation. • Reduction of policy shareholdings. Total Asset Debts and Net Assets
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38 Cash Out 130 Cash In 130 Cash Out 103 Cash In 103 Cash Allocation Plan Operating Cash flow will be used mainly for strategic investments, while strengthening shareholder returns and reviewing the financial structure. Stage1 Results （ FY2022〜FY2024) Stage2_Plan (FY2025〜FY2027) Operating Cash flow 72 Corporate Bonds issued 4 Strategic Investments 45 M&A 9 Shareholder Returns 44 Repayment of loans 14 Operating Cash flow 80〜90 External financing Strategic Investments 60〜70 Maintenance and renewal of facilities 〜30 Shareholder Returns Dividends, Buy-back 〜50 Unit: billion yen Corporate Bonds issued 27 Sale of assets, etc. Repayment of loans 〜10 • New Carbide End Mill Plant • Expansion of production facilities for growth area • Strategic M&A • Investment in factory automation • Introducing digital transformation • Stable and sustainable dividend • Conduct an agile share buy- back Dividends 17 Buy-back27 Unit: billion yen
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39 Commitment to Sustainability – Initiatives Toward Carbon Neutrality - OSG Group has set a new company-wide CO₂ emissions reduction target: 20% below FY2024 levels by 2030, supported by steady implementation of its action plan. 0 50,000 100,000 150,000 200,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2040 2050 Scope2 Scope1 FY2025 Result 153,000 (t) FY2030 Target -20% FY2040 Target -50% FY2050 Target Carbon Neutrality CO₂ Reduction Roadmap（Consolidated Scope1.2） Baseline 148,000 ⚫ To achieve the 20% reduction target by 2030 • Energy-saving • On-site PPA • Off-site PPA • CO₂-free electricity and environmental value certificates Optimizing the emissions reduction portfolio through a combination of these measures. ⚫ Calculation of value chain CO₂ emissions (Scope 3) Advancing emissions calculations, primarily for transportation (Categories 4 and 9) FY2026 Initiatives Underway Introduction of on-site PPA at the Oike New Plant planned for FY2028 ⚫ Promoting the adoption of renewable energy Next Step