Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . FASE Company name : Listing : Securities code : URL : Representative : Inquiries : Telephone : Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( Under Japanese GAAP ) Scheduled date to file semi - annual securities report Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : Nisshinbo Holdings Inc. Tokyo Stock Exchange 3105 https://www.nisshinbo.co.jp Yasuji Ishii Takuya Kawase + 81-03 ) 5695-8833 August 7 , 2026 September 4 , 2026 Yes Representative Director and President August 6 , 2026 Senior Manager , Finance and Accounting Department Yes ( for investors and analysts ) ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated financial results for the six months ended June 30 , 2026 ( from January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( Percentages indicate year - on - year changes . ) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended June 30 , 2026 June 30 , 2025 Millions of yen 272,462 254,721 % Millions of yen % Millions of yen 7.0 30,274 64.4 6.1 18,417 174.2 32,520 19,019 % 71.0 71.5 Millions of yen % 21,590 11,498 87.8 28.7 Reference : Comprehensive income For the six months ended June 30 , 2026 : For the six months ended June 30 , 2025 : ¥ ¥ 35,310 million [ - % ] 271 million [ ( 98.9 ) % ] Basic earnings per share Diluted earnings per share Six months ended Yen Yen June 30 , 2026 June 30 , 2025 ( 2 ) Consolidated financial position 138.22 73.53 Total assets Net assets Equity - to - asset ratio As of Millions of yen Millions of yen % June 30 , 2026 December 31 , 2025 645,857 667,817 348,313 49.3 316,591 43.0 Reference : Equity As of June 30 , 2026 : ¥ 318,109 million As of December 31 , 2025 : ¥ 287,322 million
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2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended December 31, 2025 - 18.00 - 18.00 36.00 Fiscal year ending December 31, 2026 - 18.00 Fiscal year ending December 31, 2026(Forecast) - 18.00 36.00 (Note) Revision to the forecast for dividends announced most recently: None 3. Consolidated financial results forecast for the fiscal year ending December 31, 2026(from January 1, 2026 to December 31, 2026) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 511,000 1.7 21,000 (20.5) 21,500 (26.7) 10,000 (28.2) 64.02 (Note) Revision to the financial results forecast most recently announced: None * Notes: (1) Significant changes in the scope of consolidation during the period: None Newly included: - (Company name: ) Excluded: - (Company name: ) (2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 169,360,439 shares As of December 31, 2025 169,328,839 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 13,130,829 shares As of December 31, 2025 13,130,169 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six months ended June 30, 2026 156,205,858 shares Six months ended June 30, 2025 156,385,291 shares (Note) On May 19, 2026, we issued 31,600 new shares as restricted stock awards. * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other special matters The consolidated financial results forecast contained in this document are based on information currently available to the Company. The Company does not make any guarantees regarding the achievement of these forecasts. We are scheduled to hold an online financial results briefing for investors and analysts today (August 6, 2026).
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Six Months Ended June 30, 2026 - 1 - Table of contents of attached materials 1. Qualitative information on semi-annual financial results ------------------------------------------------------------------------------- 2 (1) Overview of operating results ---------------------------------------------------------------------------------------------------------- 2 (2) Explanation of consolidated financial results forecasts and other forward-looking information ------------------------------ 3 2. Semi-annual consolidated financial statements and primary notes -------------------------------------------------------------------- 5 (1) Semi-annual consolidated balance sheets --------------------------------------------------------------------------------------------- 5 (2) Semi-annual consolidated statements of income and comprehensive income --------------------------------------------------- 7 (3) Semi-annual consolidated statements of cash flows --------------------------------------------------------------------------------- 9 (4) Notes to semi-annual consolidated financial statements ---------------------------------------------------------------------------- 11 (Notes on premise of a going concern) ------------------------------------------------------------------------------------------------- 11 (Notes on significant changes in shareholders' equity) ------------------------------------------------------------------------------- 11 (Segment information) -------------------------------------------------------------------------------------------------------------------- 12
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Six Months Ended June 30, 2026 - 2 - 1. Qualitative information on semi-annual financial results (1) Overview of operating results The Nisshinbo Group’s net sales for the six months of the current fiscal year totaled ¥272,462 million (up ¥17,740 million, or 7.0%, year on year). Sales in the Real Estate business declined compared to the same period last year due to a decrease in the scale of land and other properties sales. However, the Solutions business , the Specialized Equipment business and the Marine Systems business within the Wireless and Communications business performed well, resulting in increased sales. Operating profit was ¥30,274 million (up ¥11,856 million, or 64.4%, year on year). Although profits in the Real Estate business declined, the Wireless and Communications business posted higher profits. Ordinary profit was ¥32,520 million (up ¥13,501 million, or 71.0%, year on year) and profit attributable to owners of parent was ¥21,590 million (up ¥10,091 million, or 87.8%, year on year). The results for the main business segments are as follows. Segment profit or segment loss is based on operating profit or operating loss. (Wireless and Communications) The Wireless and Communications business achieved increased sales and profits. In the Solutions business, sales and profits increased due to strong order intake for prefectural disaster prevention systems - driven by the “seamless promotion of disaster prevention, mitigation, and national resilience initiatives under the Medium - Term Plan for National Resilience” - as well as an increase in orders for products for mobile carriers, combined with cost - cutting effects resulting from structural reforms. The Specialized Equipment business saw an increase in both sales and profit due to a rise in orders for defense infrastructure projects - driven by the basic policies of the Defense Capabilities Development Plan based on the National Strategy - as well as orders for software-defined radios and friend-or-foe identification systems for the Agency for Defense Equipment. The Marine Systems business saw increased sales and profits, driven by strong demand in China’s new shipbuilding market, which led to robust orders not only for equipment for new merchant ships but also for aftermarket services such as maintenance. The Connected Systems business (*) saw increased sales and improved profitability, driven by a rise in orders for railway radio systems and cost-cutting measures resulting from structural reforms. (*) The Connected Systems business is a division formed primarily through the integration of the former ICT and Mechatronics b usiness and the Mobility business as part of a structural reform. As a result, the Wireless and Communications business posted net sales of ¥145,151 million (up 15.0% year on year) and a segment profit of ¥21,977 million (up 112.5% year on year). (Micro Devices) The Micro Devices business saw increased sales and decreased losses. The main overview of the Electronic Devices business is as follows. Sales from automotive industry products increased due to factors such as a rise in orders for hybrid electric vehicle (HEV) products and products for diesel-engine vehicles, driven by the shift toward electric vehicles (EVs) in the automotive market. Sales from industrial equipment increased as customers completed their inventory adjustments and orders rose for products used in semiconductor manufacturing equipment and factory automation (FA) equipment. In the consumer equipment/devices segment, sales increased as sales of smartphone- related products remained strong. In the Microwave business, although orders for cathode-related products and microwave sensor-related products recovered, sales declined due to stagnant orders for satellite communications-related products; however, profits increased due to changes in the product mix. As a result, the Micro Devices business posted net sales of ¥ 32,893 million (up 10.3% year on year) and a segment loss of ¥415 million (decrease losses of ¥3,842 million year on year).
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Six Months Ended June 30, 2026 - 3 - (Material) ・Automobile Brakes The Automobile Brakes business achieved increased sales and profits. The Japan base saw increased sales and profits due to a rise in orders from Japanese customers in North America. At the North American base, sales increased due to a rise in orders from Japanese customers, primarily for hybrid vehicles; however, compared to the same period last year - which included retroactive price adjustments for past orders - profit declined. Sales and profits at the China and Thailand bases declined due to decreases in orders. The South Korean base saw increased sales and improved profitability due to a recovery in orders and a reduction in fixed costs. As a result, the Automobile Brakes business posted net sales of ¥29,885 million (up 5.7% year on year) and a segment profit of ¥1,899 million (up 6.2% year on year). ・Precision Instruments The Precision Instruments business achieved increased sales and profits. Sales and profits for automotive EBS components increased due to factors such as a rise in orders for next-generation valve blocks at our Chinese facility - driven by the growing number of EVs in the Chinese automotive market - and an increase in orders for automotive valve blocks at our Indian facility. Sales and profits for air conditioning-related products declined due to factors such as sluggish market conditions in Japan, Thailand, and China. As a result, the Precision Instruments business posted net sales of ¥ 27,484 million (up 1.3% year on year) and a segment profit of ¥1,950 million (up 56.0% year on year). ・Chemicals The Chemicals business saw an increase in sales and returned to profitability. Sales and profits for rigid urethane increased due to a rise in orders for rigid blocks, driven by a recovery in construction of large-scale refrigerated and frozen storage facilities. Sales from carbon separators for fuel cells declined due to a drop in orders caused by the stagnation of the hydrogen market, but losses were reduced thanks to lower fixed costs and other factors. Sales and profits for Specialty Chemicals were on par with the same period last year. As a result, the Chemicals business posted net sales of ¥4,887 million (up 3.1% year on year) and a segment profit of ¥339 million (return to profitability of ¥513 million year on year). ・Textiles The Textiles business saw a decline in sales and a return to losses. In the shirt business, sales declined and losses widened due to a decrease in orders caused by the deteriorating situation in the Middle East and sluggish domestic demand in Indonesia, as well as sluggish orders for general dress shirts for the fall and winter seasons. In the uniform business, sales declined and losses widened due to a decrease in orders in the workwear sector. At the Brazilian subsidiary, sales declined and profitability deteriorated due to a decline in cotton yarn sales prices resulting from falling raw cotton prices. As a result, the Textiles business posted net sales of ¥ 15,396 million (down 7.2% year on year) and a segment loss of ¥794 million (return to losses of ¥841 million year on year). (Real Estate) The Real Estate business saw a decline in both sales and profit. Although we sold land in Okazaki City, Aichi Prefecture, sales and profit declined compared to the same period last year, when we sold units at the large-scale commercial facility Ario Nishiarai (Adachi Ward, Tokyo) and condominiums in Minato Ward, Tokyo, due to a reduction in the scale of our property sales. As a result, the Real Estate business posted net sales of ¥ 9,083 million (down 42.7% year on year) and a segment profit of ¥7,675 million (down 35.0% year on year).
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Six Months Ended June 30, 2026 - 4 - (2) Explanation of consolidated financial results forecasts and other forward-looking information There are no changes to the consolidated earnings forecast for the fiscal year ending December 2026, which was announced on May 12, 2026.
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Six Months Ended June 30, 2026 - 5 - 2. Semi-annual consolidated financial statements and primary notes (1) Semi-annual consolidated balance sheet (Millions of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 45,625 43,934 Notes and accounts receivable - trade, and contract assets 135,214 105,135 Electronically recorded monetary claims - operating 17,471 13,435 Merchandise and finished goods 55,243 53,718 Work in process 65,655 66,027 Raw materials and supplies 40,827 42,426 Other 10,495 8,753 Allowance for doubtful accounts (470) (515) Total current assets 370,062 332,915 Non-current assets Property, plant and equipment Buildings and structures, net 61,266 60,572 Machinery, equipment and vehicles, net 44,520 43,963 Land 38,297 38,018 Other, net 23,769 23,735 Total property, plant and equipment 167,854 166,289 Intangible assets Goodwill 548 417 Other 10,364 9,666 Total intangible assets 10,913 10,084 Investments and other assets Investment securities 70,275 86,264 Other 49,803 51,321 Allowance for doubtful accounts (1,091) (1,017) Total investments and other assets 118,986 136,568 Total non-current assets 297,754 312,942 Total assets 667,817 645,857
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Six Months Ended June 30, 2026 - 6 - (Millions of yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 41,102 39,375 Electronically recorded obligations - operating 20,852 10,107 Short-term borrowings 19,931 16,001 Commercial papers 29,000 22,000 Current portion of long-term borrowings 14,145 13,023 Income taxes payable 5,501 6,304 Provisions 7,758 7,396 Other 43,415 44,649 Total current liabilities 181,707 158,858 Non-current liabilities Long-term borrowings 116,515 76,180 Provisions 140 111 Retirement benefit liability 31,729 30,591 Asset retirement obligations 938 953 Other 20,194 30,850 Total non-current liabilities 169,518 138,686 Total liabilities 351,225 297,544 Net assets Shareholders' equity Share capital 27,841 27,869 Capital surplus 18,982 19,010 Retained earnings 184,763 203,542 Treasury shares (14,177) (14,178) Total shareholders' equity 217,409 236,244 Accumulated other comprehensive income Valuation difference on available-for-sale securities 25,757 36,560 Deferred gains or losses on hedges 12 10 Foreign currency translation adjustment 31,247 33,085 Remeasurements of defined benefit plans 12,893 12,207 Total accumulated other comprehensive income 69,912 81,864 Non-controlling interests 29,269 30,203 Total net assets 316,591 348,313 Total liabilities and net assets 667,817 645,857
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Six Months Ended June 30, 2026 - 7 - (2) Semi-annual consolidated statements of income and comprehensive income Semi-annual consolidated statement of income (Millions of yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Net sales 254,721 272,462 Cost of sales 190,018 198,046 Gross profit 64,703 74,416 Selling, general and administrative expenses 46,285 44,141 Operating profit 18,417 30,274 Non-operating income Interest income 473 540 Dividend income 773 734 Share of profit of entities accounted for using equity method 3,014 904 Foreign exchange gains - 1,430 Miscellaneous income 753 1,003 Total non-operating income 5,015 4,613 Non-operating expenses Interest expenses 1,472 1,466 Foreign exchange losses 1,901 - Miscellaneous losses 1,040 901 Total non-operating expenses 4,414 2,367 Ordinary profit 19,019 32,520 Extraordinary income Gain on sale of non-current assets 397 1,498 Gain on sale of investment securities 3,632 3,346 Gain on sale of shares of subsidiaries and associates 941 - Total extraordinary income 4,971 4,845 Extraordinary losses Loss on sale of non-current assets 34 300 Loss on abandonment of non-current assets 285 100 Impairment losses 4,268 59 Loss on valuation of investment securities 839 20 Business structure improvement expenses of subsidiaries 957 4,718 Loss on liquidation of business 80 15 Total extraordinary losses 6,466 5,214 Profit before income taxes 17,524 32,151 Income taxes - current 4,857 6,320 Income taxes - deferred 612 2,796 Total income taxes 5,469 9,117 Profit 12,054 23,034 Profit attributable to non-controlling interests 555 1,443 Profit attributable to owners of parent 11,498 21,590
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Six Months Ended June 30, 2026 - 8 - Semi-annual consolidated statement of comprehensive income (Millions of yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Profit 12,054 23,034 Other comprehensive income Valuation difference on available-for-sale securities (4,193) 10,810 Deferred gains or losses on hedges (36) (2) Foreign currency translation adjustment (6,794) 1,484 Remeasurements of defined benefit plans, net of tax 270 (710) Share of other comprehensive income of entities accounted for using equity method (1,028) 693 Total other comprehensive income (11,782) 12,276 Comprehensive income 271 35,310 Comprehensive income attributable to Comprehensive income attributable to owners of parent 495 33,542 Comprehensive income attributable to non-controlling interests (223) 1,768
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Six Months Ended June 30, 2026 - 9 - (3) Semi-annual consolidated statement of cash flows (Millions of yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 17,524 32,151 Depreciation 12,672 12,444 Impairment losses 4,268 59 Amortization of goodwill 237 133 Increase (decrease) in allowance for doubtful accounts 111 (36) Increase (decrease) in retirement benefit liability (1,239) (1,422) Interest and dividend income (1,247) (1,275) Interest expenses 1,472 1,466 Share of loss (profit) of entities accounted for using equity method (3,014) (904) Loss (gain) on sale of investment securities (3,632) (3,346) Loss (gain) on valuation of investment securities 839 20 Loss (gain) on transfer of stocks of subsidiaries and affiliates (941) - Loss (gain) on disposal of non-current assets (77) (1,097) Business structure improvement expenses of subsidiaries 957 4,718 Decrease (increase) in accounts receivable - trade, and contract assets 27,562 34,994 Decrease (increase) in inventories 3,197 69 Increase (decrease) in trade payables (5,141) (12,895) Other, net 1,434 444 Subtotal 54,985 65,524 Interest and dividends received 9,394 1,290 Interest paid (1,487) (1,563) Payment amount for loss on liquidation of business (77) (15) Payments for business structure improvement expenses of subsidiaries - (1,729) Income taxes paid (3,468) (5,702) Income taxes refund 323 105 Net cash provided by (used in) operating activities 59,669 57,909
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Six Months Ended June 30, 2026 - 10 - (Millions of yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Cash flows from investing activities Proceeds from withdrawal of time deposits - 1,503 Purchase of property, plant and equipment (7,915) (7,744) Proceeds from sale of property, plant and equipment 1,366 1,757 Purchase of investment securities (28) (9) Proceeds from sale of investment securities 4,976 4,199 Decrease (increase) in short-term loans receivable 56 13 Other, net 517 (931) Net cash provided by (used in) investing activities (1,026) (1,212) Cash flows from financing activities Net increase (decrease) in short-term borrowings (30,634) (4,033) Repayments of long-term borrowings (4,607) (41,457) Purchase of treasury shares (939) (1) Dividends paid (2,829) (2,811) Dividends paid to non-controlling interests (161) (833) Increase (decrease) in commercial papers (11,000) (7,000) Other, net (882) (1,320) Net cash provided by (used in) financing activities (51,053) (57,458) Effect of exchange rate change on cash and cash equivalents (1,450) 640 Net increase (decrease) in cash and cash equivalents 6,138 (121) Cash and cash equivalents at beginning of period 50,411 44,055 Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation 448 - Cash and cash equivalents at end of period 56,998 43,934
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Six Months Ended June 30, 2026 - 11 - (4) Notes to semi-annual consolidated financial statements (Notes on premise of a going concern) There are no applicable items. (Notes on significant changes in shareholders' equity) There are no applicable items.
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Six Months Ended June 30, 2026 - 12 - (Segment information) I For the six months ended June 30, 2025 (from January 1, 2025 through June 30, 2025) 1. Information on net sales and profit or loss by reportable segments (Millions of yen) Reportable Segment Others (Note) Total Wireless and Communicat ions Micro device Automobile Brakes Precision Instruments Chemicals Textiles Real Estate Total Net sales Net sales to external customers 126,174 29,825 28,275 27,138 4,740 16,593 15,863 248,610 6,110 254,721 Intersegment net sales and transfers 173 261 3 117 232 34 744 1,568 847 2,416 Total 126,348 30,086 28,279 27,255 4,973 16,627 16,608 250,179 6,958 257,138 Segment profit (loss) 10,341 (4,257) 1,787 1,250 (173) 46 11,811 20,806 153 20,960 (Note) "Others" includes trading company functions of food products, industrial materials, etc., which are not included in the reportable segments. 2. Difference between the total amount of profit or loss of the reportable segments and the amount recorded in the semi -annual consolidated statements of income, and main details of such difference (Matters related to difference adjustment) (Millions of yen) Profit Amounts Total of reportable segments 20,806 Profit in the "Other" category 153 Elimination of intersegment transactions 45 Company-wide expenses (Note) (2,587) Operating profit in the semi-annual consolidated statements of income 18,417 (Note) Company-wide expenses mainly consist of group administrative expenses, depreciation and amortization, and research and development expenses for basic technology that do not belong to the reportable segments. 3. Information on impairment losses on fixed assets or goodwill, etc. by reportable segment (Significant impairment loss on fixed assets) (Chemicals) The book value of assets related to the manufacture of carbon separators for fuel cells of Nisshinbo Chemical Inc. was reduced to the recoverable amount due to the deterioration of the market environment, which made it impossible to expect the cash flows that had been initially assumed. The resulting decrease of ¥4,150 million was recorded as an extraordinary loss. The recoverable amount was determined based on the fair value, and since it is uncertain whether future cash flows will be positive, the amount has been reduced to the carrying amount.
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Nisshinbo Holdings Inc. (3105) Consolidated Financial Results for the Six Months Ended June 30, 2026 - 13 - II For the six months ended June 30, 2026 (from January 1, 2026 through June 30, 2026) 1. Information on net sales and profit or loss by reportable segment (Millions of yen) Reportable Segment Others (Note) Total Wireless and Communicat ions Micro device Automobile Brakes Precision Instruments Chemicals Textiles Real Estate Total Net sales Net sales to external customers 145,151 32,893 29,885 27,484 4,887 15,396 9,083 264,783 7,678 272,462 Intersegment net sales or transfers 237 264 6 24 214 25 696 1,468 784 2,252 Total 145,388 33,157 29,892 27,509 5,102 15,422 9,780 266,252 8,463 274,715 Segment profit (loss) 21,977 (415) 1,899 1,950 339 (794) 7,675 32,633 174 32,807 (Note) "Others" includes trading company functions of food products, industrial materials, etc., which are not included in the reportable segments. 2. Difference between the total amount of profit or loss of the reportable segments and the amount recorded in the semi -annual consolidated statements of income, and main details of such difference (Matters related to difference adjustment) (Millions of yen) Profit Amounts Total of reportable segments 32,633 Profit in the "Other" category 174 Elimination of intersegment transactions 24 Company-wide expenses (Note) (2,557) Operating profit in the semi-annual consolidated statements of income 30,274 (Note) Company-wide expenses mainly consist of group administrative expenses, depreciation and amortization, and research and development expenses for basic technology that do not belong to the reportable segments.