Interim report
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Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( unaudited ) [ Japanese GAAP ] FASF Company name : Listing : Code No .: Representative : Contact : TEL : Rengo Co. , Ltd. Tokyo Stock Exchange 3941 Yosuke Kawamoto , Representative Director , President & COO August 5 , 2026 URL : https : //www.rengo.co.jp/ Tsuneo Tanaka , General Manager , Finance & Accounting Group and Finance Department +81 ( 0 ) 66223 -2371 - Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : Yes None ( Amounts are rounded down to the nearest million yen . ) 1. Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( April 1 , 2026 - June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( cumulative ) ( Percentages indicate changes from the same period of the previous fiscal year . ) Profit attributable to Net sales Operating profit Ordinary profit owners of parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30 , 2026 June 30 , 2025 275,750 249,399 10.6 2.0 17,898 10,375 72.5 ( 14.4 ) 18,903 10,483 80.3 11,575 92.8 ( 20.9 ) 6,002 ( 57.1 ) Note : Comprehensive income Three months ended June 30 , 2026 : Three months ended June 30 , 2025 : 25,616million yen - % ( 3,299 ) million yen - % Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30 , 2026 June 30 , 2025 46.97 24.22 ( 2 ) Consolidated Financial Position Total assets Net assets Shareholders ' equity ratio As of Millions of yen Millions of yen % June 30 , 2026 March 31 , 2026 1,353,480 1,313,086 543,422 528,554 37.2 37.3 Reference : Shareholders ' equity As of June 30 , 2026 : As of March 31 , 2026 : 503,271 million yen 489,300 million yen 2. Cash Dividends Annual dividends per share 1st quarter - end 2nd quarter - end 3rd quarter - end Fiscal year - end Total Yen Yen Yen Yen Yen Fiscal year ended March 31 , 2026 Fiscal year ending 20.00 20.00 40.00 March 31 , 2027 Fiscal year ending 25.00 25.00 50.00 March 31 , 2027 ( Forecast ) Note : Revisions to the cash dividend forecast from the latest announcement : None
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3. Consolidated Financial Forecasts for the Year Ending March 31, 2027 (April 1, 2026 - March 31, 2027) (Percentages indicate changes from the same period of the previous fiscal year.) 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 2nd Quarter (cumulative) 545,000 9.6 25,000 25.2 24,000 19.8 17,000 54.1 68.98 Full fiscal year 1,090,000 8.1 46,000 24.0 44,000 17.6 31,000 47.6 125.78 Note: Revisions to the consolidated financial forecasts from the latest announcement: None 4. Notes (1) Significant changes in the scope of consolidation during the period: Yes Newly included: － (Company name: ) Excluded: 1 company Nissio Gravure Co., Ltd. (2) Adoption of accounting treatment specific to the preparation of quarterly 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 other than (i) above: 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 271,056,029 Shares As of March 31, 2026 271,056,029 Shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 26,483,388 Shares As of March 31, 2026 23,012,676 Shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 246,457,658 Shares Three months ended June 30, 2025 247,866,824 Shares (Note) The Company has introduced a stock compensation plan using a trust for Directors and Executive officers, and its shares held by the Trust are included in the number of treasury shares. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Explanation for the appropriate use of financial forecasts and other notes: Any statement in this document regarding the forecasts is based on the information currently available to the Company and certain assumptions the Company considers reasonable. The actual results may differ significantly from these forecasts due to various factors. * This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.
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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 ....................................................................................................... 3 (3) Explanation of Consolidated Financial Forecasts and Other Forward-Looking Information ............. 3 2. Quarterly Consolidated Financial Statements and Principal Notes ......................................................... 4 (1) Quarterly Consolidated Balance Sheets .............................................................................................. 4 (2) Quarterly Consolidated Statements of Income and Comprehensive Income ...................................... 6 (3) Notes to Quarterly Consolidated Financial Statements ....................................................................... 8 (Notes on going concern assumption) ............................................................................................ 8 (Notes in case of significant changes in shareholders’ equity) ....................................................... 8 (Segment information, etc.) ............................................................................................................ 9 (Notes regarding statements of cash flows) .................................................................................. 10
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2 1. Qualitative Information on Quarterly Financial Results (1) Explanation of Operating Results During the three months ended June 30, 2026, the Company reported higher sales and profit due to product price revisions, despite rising fixed costs. As a result, net sales amounted to ¥275,750 million (110.6% year on year), operating profit to ¥17,898 million (172.5% year on year), ordinary profit to ¥18,903 million (180.3% year on year), and profit attributable to owners of parent to ¥11,575 million (192.8% year on year). An overview of each segment for the three months ended June 30, 2026 is as follows. [Paperboard and Packaging-Related Business] The Paperboard and Packaging-Related Business reported higher sales and profit due to the product price revisions, despite rising fixed costs and logistics expenses and other factors. As a result, net sales were ¥138,557 million (106.0% year on year) and operating profit was ¥10,137 million (146.7% year on year). [Flexible Packaging-Related Business] The Flexible Packaging-Related Business reported higher sales and profit due to product price revisions and an acceleration in demand for our products on the back of an uncertain outlook following an escalation of tensions in the Middle East. As a result, net sales were ¥56,080 million (114.1% year on year) and operating profit was ¥5,771 million (214.2% year on year). [Heavy Duty Packaging-Related Business] The Heavy Duty Packaging-Related Business reported higher sales and profit due to an acceleration in demand for our products on the back of an uncertain outlook following an escalation of tensions in the Middle East. As a result, net sales were ¥12,903 million (113.7% year on year) and operating profit was ¥695 million (144.9% year on year). [Overseas Business] The Overseas Business reported higher sales and profit due to an increase in the number of consolidated subsidiaries and strong sales of heavy duty packaging materials in North America and Southeast Asia. As a result, net sales were ¥57,941 million (118.7% year on year) and operating profit was ¥699 million (operating loss of ¥109 million in the same period of the previous fiscal year). [Other Business] Other Business reported higher sales and profit due to strong sales of paper packaging machinery. As a result, net sales were ¥10,266 million (109.5% year on year) and operating profit was ¥473 million (164.5% year on year).
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3 (2) Explanation of Financial Position Total assets as of June 30, 2026 were ¥1,353,480 million, an increase of ¥40,393 million from the end of the previous fiscal year. This was mainly due to increases in notes and accounts receivable - trade and investment securities. Total liabilities amounted to ¥810,057 million, an increase of ¥25,526 million from the end of the previous fiscal year. The increase was mainly due to an increase in notes and accounts payable – trade and the issuance of commercial papers. Net assets were ¥543,422 million, an increase of ¥14,867 million from the end of the previous fiscal year. This was primarily due to an increase in retained earnings as a result of reporting profit attributable to owners of parent and an increase in valuation difference on available-for-sale securities. As a result, the shareholders’ equity ratio decreased by 0.1 percentage points from the end of the previous fiscal year to 37.2%. (3) Explanation of Consolidated Financial Forecasts and Other Forward-Looking Information In light of a number of uncertainties at the moment, the consolidated financial forecasts announced on May 14, 2026 have not been revised.
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4 2. Quarterly Consolidated Financial Statements and Principal Notes (1) Quarterly Consolidated Balance Sheets (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 92,217 80,849 Notes and accounts receivable - trade 282,531 303,700 Securities - 7,000 Merchandise and finished goods 57,297 59,124 Work in process 7,252 8,422 Raw materials and supplies 45,322 46,762 Other 18,061 19,403 Allowance for doubtful accounts (2,570) (2,672) Total current assets 500,111 522,590 Non-current assets Property, plant and equipment Buildings and structures 401,854 405,083 Accumulated depreciation (231,364) (234,070) Buildings and structures, net 170,490 171,013 Machinery, equipment and vehicles 798,692 805,112 Accumulated depreciation (635,577) (641,509) Machinery, equipment and vehicles, net 163,114 163,602 Land 155,063 155,138 Leased assets 51,283 54,021 Accumulated depreciation (25,040) (28,620) Leased assets, net 26,242 25,401 Construction in progress 36,433 38,591 Other 35,468 36,054 Accumulated depreciation (27,237) (27,660) Other, net 8,230 8,394 Total property, plant and equipment 559,574 562,141 Intangible assets Goodwill 17,829 17,109 Other 19,727 19,158 Total intangible assets 37,557 36,268 Investments and other assets Investment securities 167,241 181,099 Long-term loans receivable 799 821 Retirement benefit asset 9,612 9,646 Deferred tax assets 2,900 5,313 Other 36,182 36,485 Allowance for doubtful accounts (893) (887) Total investments and other assets 215,843 232,478 Total non-current assets 812,974 830,889 Total assets 1,313,086 1,353,480
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5 (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 147,709 159,102 Short-term borrowings 152,747 178,778 Commercial papers - 10,000 Current portion of bonds payable 30,000 30,000 Lease liabilities 7,552 7,859 Accrued expenses 39,838 37,114 Income taxes payable 15,133 5,250 Provision for bonuses for directors (and other officers) 486 - Other 45,130 47,824 Total current liabilities 438,599 475,930 Non-current liabilities Bonds payable 95,100 95,100 Long-term borrowings 180,302 161,089 Lease liabilities 18,277 17,355 Deferred tax liabilities 34,303 42,893 Provision for retirement benefits for directors (and other officers) 887 832 Provision for share awards for directors (and other officers) 1,027 1,092 Factory move cost reserve 2,377 2,377 Retirement benefit liability 10,745 10,689 Other 2,911 2,696 Total non-current liabilities 345,931 334,127 Total liabilities 784,531 810,057 Net assets Shareholders’ equity Share capital 31,066 31,066 Capital surplus 34,995 34,995 Retained earnings 312,904 319,448 Treasury shares (12,260) (17,182) Total shareholders’ equity 366,705 368,328 Accumulated other comprehensive income Valuation difference on available-for-sale securities 46,389 56,171 Deferred gains or losses on hedges 0 2 Foreign currency translation adjustment 65,075 67,972 Remeasurements of defined benefit plans 11,129 10,796 Total accumulated other comprehensive income 122,594 134,942 Non-controlling interests 39,254 40,150 Total net assets 528,554 543,422 Total liabilities and net assets 1,313,086 1,353,480
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6 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income Three Months Ended June 30 (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales 249,399 275,750 Cost of sales 202,266 218,701 Gross profit 47,132 57,048 Selling, general and administrative expenses Freight and packing costs 8,093 8,976 Salaries and allowances 11,532 12,297 Amortization of goodwill 905 838 Other 16,226 17,038 Total selling, general and administrative expenses 36,757 39,150 Operating profit 10,375 17,898 Non-operating income Interest income 187 134 Dividend income 1,011 1,824 Share of profit of entities accounted for using equity method 113 500 Other 1,260 1,084 Total non-operating income 2,574 3,544 Non-operating expenses Interest expenses 1,160 1,570 Other 1,305 969 Total non-operating expenses 2,466 2,539 Ordinary profit 10,483 18,903 Extraordinary income Gain on sale of investment securities 17 447 Other 97 16 Total extraordinary income 114 464 Extraordinary losses Loss on sale and retirement of non-current assets 132 155 Loss on termination of retirement benefit plan - 68 Other 82 78 Total extraordinary losses 215 302 Profit before income taxes 10,382 19,065 Income taxes - current 1,802 4,358 Income taxes - deferred 2,045 1,797 Total income taxes 3,847 6,155 Profit 6,534 12,909 Profit attributable to non-controlling interests 532 1,334 Profit attributable to owners of parent 6,002 11,575
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7 Quarterly Consolidated Statements of Comprehensive Income Three Months Ended June 30 (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit 6,534 12,909 Other comprehensive income Valuation difference on available-for-sale securities 308 9,948 Deferred gains or losses on hedges (3) 1 Foreign currency translation adjustment (6,243) 2,261 Remeasurements of defined benefit plans, net of tax (310) (345) Share of other comprehensive income of entities accounted for using equity method (3,585) 840 Total other comprehensive income (9,833) 12,706 Comprehensive income (3,299) 25,616 Comprehensive income attributable to Comprehensive income attributable to owners of parent (3,378) 23,921 Comprehensive income attributable to non-controlling interests 79 1,694
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8 (3) Notes to Quarterly Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Notes in case of significant changes in shareholders’ equity) Not applicable.
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9 (Segment information, etc.) (Segment information) For the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) Information on sales and profit or loss by reportable segment (Millions of yen) Reportable segment Other Businesses *1 Adjustments *2 Total *3 Paperboard and Packaging- Related Business Flexible Packaging- Related Business Heavy Duty Packaging- Related Business Overseas Business Subtotal Sales Sales to third parties 130,730 49,133 11,348 48,808 240,020 9,379 - 249,399 Intersegment sales and transfers 520 177 998 2,547 4,243 8,596 (12,840) - Total sales 131,250 49,310 12,347 51,355 244,263 17,975 (12,840) 249,399 Segment profit (loss) 6,911 2,694 480 (109) 9,977 288 110 10,375 *1 “Other Businesses” are businesses which are not included in reportable segments and include domestic manufacturing and sales of nonwoven products, paper packaging machinery and other businesses such as transport, insurance agency, leasing and real estate. *2 The adjustment of segment profit (loss) of ¥110 million was from the elimination of intersegment transactions. *3 The segment profit (loss) was reconciled with operating profit in the quarterly consolidated statements of income. For the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) Information on sales and profit or loss by reportable segment (Millions of yen) Reportable segment Other Businesses *1 Adjustments *2 Total *3 Paperboard and Packaging- Related Business Flexible Packaging- Related Business Heavy Duty Packaging- Related Business Overseas Business Subtotal Sales Sales to third parties 138,557 56,080 12,903 57,941 265,483 10,266 - 275,750 Intersegment sales and transfers 690 210 1,103 2,514 4,518 8,899 (13,418) - Total sales 139,248 56,290 14,006 60,456 270,001 19,166 (13,418) 275,750 Segment profit (loss) 10,137 5,771 695 699 17,303 473 121 17,898 *1 “Other Businesses” are businesses which are not included in reportable segments and include domestic manufacturing and sales of nonwoven products, paper packaging machinery and other businesses such as transport, insurance agency, leasing and real estate. *2 The adjustment of segment profit (loss) of ¥121 million was from the elimination of intersegment transactions. *3 The segment profit (loss) was reconciled with operating profit in the quarterly consolidated statements of income.
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10 (Notes regarding statements of cash flows) Quarterly consolidated statements of cash flows were not prepared for the three months ended June 30, 2026. Depreciation (including amortization of intangible assets other than goodwill), amortization of goodwill, and amortization of negative goodwill for the three months ended June 30 are as follows. (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Depreciation 13,466 14,581 Amortization of goodwill 905 838 Amortization of negative goodwill 0 -