Interim report
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Disclaimer: This document is an English translation of the original in Japanese and has been prepared solely for reference purposes. In the event of any discrepancy between this English translation and the original, the original shall prevail. Consolidated Financial Results for the Three Months Ended June 30, 2026 [Japanese GAAP] August 3, 2026 Company name: SEIREN CO., LTD. Stock exchange listing: Tokyo Stock Exchange Securities code: 3569 URL: https://www.seiren.com/english/ Representative: Tatsuo Kawada, Representative Director, Chairman and C.E.O. Contact: Tomofumi Katsuki, Director and Senior Managing Executive Officer and Division Manager, Administration Division Phone: +81-776-35-2111 Scheduled date of commencing dividend payments: – Availability of supplementary explanatory materials on financial results: Available Schedule of financial results briefing session: Not scheduled (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for the Three Months Ended June 30, 2026 (April 1, 2026 – June 30, 2026) (1) Consolidated Operating Results (% indicates changes from th e previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Three months ended Million yen % Million yen % Million yen % Million yen % June 30, 2026 49,145 21.0 6,667 23.5 7,096 24.4 4,656 13.9 June 30, 2025 40,625 5.0 5,399 31.1 5,705 23.6 4,088 16.6 Note: Comprehensive income: Thre e months ended June 30, 2026: ¥6,853 million [–%] Three months ended June 30, 2025: ¥138 million [(98.0)%] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30, 2026 79.25 78.76 June 30, 2025 69.71 69.23 (2) Consolidated Financial Position Total assets Net assets Equity ratio Net assets per share Million yen Million yen % Yen As of June 30, 2026 227,826 165,758 72.3 2,810.78 As of March 31, 2026 223,926 161,787 71.8 2,734.60 Reference: Equity: As of J une 30, 2026: ¥164,808 million As of March 31, 2026: ¥160,816 million
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*Review of the Japanese-language originals of the attached quar terly consolidated financial statements by certified public accountants or an audit firm: None * Explanation of the proper use of financial results forecast and other notes The financial results forecasts and other forward-looking state ments herein are based on information available to the Company as of the date of publication of this document and cert ain assumptions deemed reasonable. Actual results may differ significantly from these forecasts due to a wide ran ge of factors. For notes on financial results forecasts, please refer to “1. Qualitative Information on Quarterly Financial Results for the Period under Review, (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information” on page 4 of the attachments to this document.
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1 Table of Contents - Attachments 1. Qualitative Information on Quarterly Financial Results ..............................................................................2 (1) Explanation of Operating Results .............................................................................................................2 (2) Explanation of Financial Position .............................................................................................................4 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .........4 2. Quarterly Consolidated Financial Statements and Principal Notes ...............................................................5 (1) Quarterly Consolidated Balance Sheet ......................................................................................................5 (2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................7 Quarterly Consolidated Statement of Income ...........................................................................................7 Quarterly Consolidated Statement of Comprehensive Income .................................................................8 (3) Quarterly Consolidated Statement of Cash Flows ....................................................................................9 (4) Notes to Quarterly Consolidated Financial Statements ...........................................................................10 (Notes on going concern assumption) .................................................................................................10 (Notes in case of significant changes in shareholders’ equity) ...........................................................10 (Application of specific accounting for preparing quarterly consolidated financial statements) ........10 (Segment information, etc.) ................................................................................................................ 11
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2 1. Qualitative Information on Quarterly Financial Results (1) Explanation of Operating Results During the first three months of the fiscal year ending March 3 1, 2027, the economy followed a moderate recovery trend, supported by improvements in the employment and income environment. However, the outlook remained unclear due to factors including developments in U.S. trade policy, rising geopolitical risks such as the situation in the Middle East, ri sing prices, persistently high energy and raw material prices, and fluctuations in foreign exchange rates. While facing such a challenging environment, the Seiren Group i s striving to meet the ever-changing needs of customers while securing stable earnings and achieving sustaina ble growth, guided by its medium-term aspiration, “Challenge ourselves to unlock hidden possibilities!” To accomp lish this, the Group is carrying out a business strategy focused on innovation and customer development, and on rebuilding its corporate culture. At the same time, it is also working to strengthen corporate culture by continuing to pursue management practices aimed at increasing non-financial value, including the potential of its capabilities in talent, development, and responsiveness to changes in the environment. The consolidated results for the first three months of the fisc al year under review were ¥49,145 million in net sales (up 21.0% year on year), ¥6,667 million in operating profit (up 23.5% year on year), ¥7,096 million in ordinary profit (up 24.4% year on year), and ¥4,656 million in profit attributable to owners of parent (up 13.9% year on year). All four results were record highs for the first three months of the fiscal year under review. The results by segment are as follows. [Operating Results by Segment] (Automotive Interior) In the domestic business, both sales and profits increased due to changes in the product mix of car seat materials and expanded sales for new car models, as well as an increase i n orders for airbags for new car models, despite the impact of rising raw material and energy costs caused by the situation in the Middle East. In the overseas business (January to March 2026), net sales in the U.S. declined due to a rebound from strong sales of some products in the previous year, and Mexico was als o affected by factors such as sluggish growth in electric vehicle sales. In Asia, performance remained strong due to factors including the steady sales of high-value- added products at China-based Seiren Suzhou Co., Ltd., as well as the effects of cost-reduction efforts. Furthermore, although sales of car seat materials increased in Thailand, the overseas business as a whole recorded decreases both in sales and profits, due to the impact of trends in the automo bile sales market and other factors at some business sites. Additionally, the materials for automobiles, etc. of NB SEIREN CO., LTD., which became a consolidated subsidiary on January 1, 2026, were included in this segment. As a result, the segment as a whole achieved higher sales and profits. Net sales in this segment totaled ¥30,426 million (up 10.0% year on year), and operating profit was ¥4,507 million (up 8.2% year on year). (High Fashion Materials) Amid the apparel industry’s growing interest in environmentally friendly approaches to manufacturing, the Company has deployed a business model that leverages its propri etary Viscotecs ®, a system that enables differentiated products to be made in small lots with short del ivery time and inventory-free operation. In addition, the Company develops and manufactures recycled and biodegradable materials. On a non-consolidated basis, although sales of products for spo rts, innerwear, and apparel were sluggish, an increase in profit was achieved due to the effects of cost-reduction efforts and other factors. At KB SEIREN, LTD.,
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3 standard yarns struggled to grow, but specialty yarns performed steadily. Meanwhile, at Saha Seiren Co., Ltd., sales decreased due to a reactionary decline from the high special demand of the previous year. As a result, the entire segment saw a decrease in sales and an increase in profits. Net sales in this segment were ¥5,223 million (down 3.7% year o n year) and operating profit came to ¥469 million (up 7.4% year on year). (Electronics Materials) In addition to steady sales of products for mobile devices and AI-related servers, positiv e net sales related to space system business contributed to increased sales and profits on a non-consolidated basis. At KB SEIREN LTD., demand recovered for Savina® HDD wiping cloths for data centers, and sales of Belltron®, an electrically conductive fabric for dust-proof clothing used by overseas semiconductor manufacturers continued to grow steadily. In addition, SEIREN Advanced Materials Corp. reported solid sales in thermal oxide processing of silicon wafers (thin and thick films). As a result, both sales and profits expanded for the entire segment. Net sales in this segment amounted to ¥3,719 million (up 16.2% year on year) and operating profit totaled ¥1,007 million (up 60.0% year on year). (Environmental & Life Materials) Regarding housing-related materi als, demand was brought forward due to concerns about material supply stemming from the situation in the Middle East. At KB SEIREN, LTD., net sales of consumer products showed signs of recovery, and the fibers, non-woven fabrics, etc. for indust rial use of NB SEIREN CO., LTD. were included in this segment. As a result, both sales and profits increased for the entire segment. Net sales in this segment were ¥ 5,993 million (up 147.9% year o n year) and operating profit was ¥519 million (up 131.4% year on year). (Medical Materials) Sales of artificial blood vessels as well as health and medical supplies such as supporters and other products remained strong. Meanwhile, KB SEIREN, LTD. recorded lower sale s and profits due to a decrease in sales of adhesive materials and the impact of cost increases on some pro ducts. The staple fibers for adhesive materials and other products of NB SEIREN CO., LTD. were included in this segment. As a result, both sales and profits increased for the entire segment. Net sales in this segment were ¥2,077 million (up 20.0% year on year) and operating profit was ¥293 million (up 24.6% year on year). (Other Businesses) NAGOYA SEIREN CO., LTD.’s real estate leasing and management bu siness and SEIREN SHOJI Co., Ltd.’s insurance agency business delivered strong results. In addition , the sale of raw material s for packaging films and containers of NB SEIREN CO., LTD. was included in this segment. As a result, both sales and profits increased for the entire segment. The segment recorded net sales of ¥1,705 million (up 753.6 % ye ar on year) and an operating profit of ¥215 million (up 48.6% year on year).
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4 (2) Explanation of Financial Position Total assets as of the end of the first quarter under review amounted to ¥227,826 million, an increase of ¥3,899 million from the end of the previous fiscal year. Current asset s increased by ¥1,846 million from the end of the previous fiscal year, mainly due to an increase in securities. Non-current assets increased by ¥2,052 million from the end of the previous fiscal year, mainly due to increases in con struction in progress and investment securities. Total liabilities decreased by ¥71 million to ¥62,067 million mainly due to a decrease in provision for bonuses, despite an increase in notes and accounts payable - trade. Net assets increased by ¥3,971 million to ¥165,758 million, mai nly due to an increase in retained earnings and fluctuations in foreign currency translation adjustment. The state of cash flows at the end of the first quarter under r eview was ¥34,395 million in cash and cash equivalents, an increase of ¥196 million from the end of the previous fiscal year. Net cash provided by operating activities was ¥6,172 million (n et cash provided of ¥2,324 million in the same period of the previous fiscal year). This was mainly attributable to ¥7,120 million in profit before income taxes and ¥1,646 million in depreciation. Net cash used in investing activities was ¥3,665 million (net cash provided of ¥489 million in the same period of the previous fiscal year). This was mainly due to net cash used for the purchase of property, plant and equipment of ¥2,786 million and net cash used for the purchase of short-term and long-term investment securities of ¥1,034 million. Net cash used in financing activities was ¥3,206 million (net c ash used of ¥3,588 million in the same period of the previous fiscal year). This was mainly due to net cash used of ¥2,234 million for dividends paid and net cash used of ¥614 million for the purchase of treasury shares. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information Regarding the outlook for the future, although there are uncert ain factors such as developments in U.S. trade policy, geopolitical risks including the situation in the Middl e East, trends in raw material and energy prices, and fluctuations in foreign exchange rates, the performance for the three months under review reached a record high. Consequently, we have determined that our business performance will progress as planned, centered on the Automotive Interior and Electronics Materials businesses, and have decided to revise upward the full-year financial results forecast for the fiscal year under review, which was announced on May 13, 2026. Revisions to the full-year consolidated financial results forecast for the fiscal year ending March 31, 2027 (April 1, 2026 to March 31, 2027) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Million yen Million yen Million yen Million yen Yen Previous forecast (A) 190,300 20,900 21,100 15,000 255.07 Revised forecast (B) 195,300 22,600 23,000 15,700 267.58 Change (B-A) 5,000 1,700 1,900 700 Change (%) 2.6 8.1 9.0 4.7 Reference: Results for the previous fiscal year ended March 31, 2026 171,765 20,832 22,005 15,599 265.48
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10 (4) Notes to Quarterly Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Notes in case of significant changes in shareholders’ equity) Not applicable. (Application of specific accounting for preparing quarterly consolidated financial statements) (Calculation of taxes) Taxes are calculated first by r easonably estimating the effecti ve tax rate after applying tax effect accounting against profit before income taxes for the fiscal year includin g the first quarter under review, and next by multiplying the periodical profit before income taxes by such estimated effective tax rate.
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11 (Segment information, etc.) (Segment information) I For the three months ended J une 30, 2025 (from April 1, 2025 to June 30, 2025) 1. Amounts of each reportable segment’s net sales and profits; disaggregation of revenue (Million yen) Reportable Segments (Note 1) Other Businesses (Note 1) Total Adjustments (Note 2) Amount in quarterly consolidated statement of income (Note 3) Automotive Interior High - Fashion Materials Electronics Materials Environmental & Life Materials Medical Materials Subtotal Net sales Revenue from contracts with customers 27,650 5,423 3,201 2,418 1,731 40,425 68 40,494 – 40,494 Other revenue – – – – – – 130 130 – 130 Sales to external customers 27,650 5,423 3,201 2,418 1,731 40,425 199 40,625 – 40,625 Intersegment sales or transfers 0 19 72 72 7 172 168 340 (340) – Total 27,650 5,443 3,274 2,490 1,738 40,597 368 40,966 (340) 40,625 Segment profit 4,167 437 629 224 235 5,694 145 5,839 (440) 5,399 II For the three mont hs ended June 30, 2026 (from April 1, 2026 to June 30, 2026) 1. Amounts of each reportable segment’s net sales and profits; disaggregation of revenue (Million yen) Reportable Segments (Note 1) Other Businesses (Note 1) Total Adjustments (Note 2) Amount in quarterly consolidated statement of income (Note 3) Automotive Interior High - Fashion Materials Electronics Materials Environmental & Life Materials Medical Materials Subtotal Net sales Revenue from contracts with customers 30,426 5,223 3,719 5,993 2,077 47,440 1,573 49,013 – 49,013 Other revenue – – – – – – 132 132 – 132 Sales to external customers 30,426 5,223 3,719 5,993 2,077 47,440 1,705 49,145 – 49,145 Intersegment sales or transfers 0 15 253 71 4 345 193 539 (539) – Total 30,427 5,238 3,973 6,065 2,081 47,785 1,899 49,685 (539) 49,145 Segment profit 4,507 469 1,007 519 293 6,798 215 7,014 (347) 6,667 Notes: 1. The main pr oducts and services handled by each segment are as follows. (1) Automotive Interior: Materials for interiors of automobiles, ra ilway rolling stock, etc. (seat covers, air bags, decorative parts) (2) High Fashion Materials: Apparel products, apparel textile proce ssing (3) Electronics Materials: Conductive materials, industrial wiping cloths, electronic devices, silicon wafer film deposition, parts related to artificial satellites (4) Environmental & Life Materials: Construction materials, interio r materials, health/nursing products, environmental, civil engineering or agricultural materials (5) Medical Materials: Medical mater ials, cosmetics, water processing materials “Other Businesses” represents business segments not included in the reportable segments, such as raw material sales for packaging films and containers, software dev elopment and sales, insurance agency services, temporary staffing services, and real estate leasing and management services. 2. The segment profit adjustment includes corporate expenses n ot allocated to the reportable segments (¥430 million for the three months ended June 30, 2025; ¥350 million for the three months ended June 30, 2026).
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12 Corporate expenses are mainly expenses pertaining to general affairs departments and other administrative divisions that do not fall under the reportable segments. 3. Segment profit is reconciled with operating profit as liste d in the Quarterly Consolidated Statement of Income.