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Financial Results for the First Quarter of Fiscal Year Ending March 31, 2027 (FY2026 1Q) August 3, 2026 FY2026 1Q Business Results Performance Overview by B.U. SECTION 1 SECTION 3 FY2026 Business ForecastsSECTION 2 AppendixSECTION ４
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© Nippon Kayaku Co.,Ltd. 2 Our Main Messages for Today Profit 22.9 bn yen YoY︓-1.7 bn Operating Income 27.3 bn yen YoY︓＋4.8 bn FY2026 Business Forecasts ・Year-on-year: Increased revenue and profit ・Net sales reached a record-high for the quarter Net Sales 67.4 bn yen YoY︓＋12.6 bn Operating Income 6.7 bn yen YoY︓＋2.4 bn Profit 6.1 bn yen YoY︓＋1.8 bn Net Sales 270.9 bn yen YoY︓＋29.0 bn FY2026 1Q Business Results ・1H forecasts revised upward based on recent performance, while 2H forecasts remain unchanged
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© Nippon Kayaku Co.,Ltd. 3 FY2026 1Q Business Results (April 2026-June 2026) SECTION 1
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© Nippon Kayaku Co.,Ltd. 4 FY2026 1Q Business Results Change (YoY)FY2026 1Q Actual FY2025 1Q Actual %Amount 23.112.667.954.8（bn yen）Net sales 32.52.28.96.7（bn yen） Operating income by industry segment 54.32.46.74.4（bn yen）Operating income 81.73.37.44.1（bn yen）Ordinary income 41.71.86.14.3Quarterly Profit attributable to owners of parent （bn yen） 50.5 13.79 41.0827.29 Quarterly Profit attributable to owners of parent per share (basic) (yen) 35.10.271.04 times0.77 timesPBR 10.414.98159.57144.59(JPY／USD)Exchange rate Year-on-year: Increased revenue and profit Non-operating income/loss: +0.7 bn yen; extraordinary income/lo ss: +1.5 bn yen (of which, gains on investment security sales: +1.7 bn yen) Foreign exchange rate sensitivity: Net sales 2.3 bn yen, Operating income 0.1 bn yen
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© Nippon Kayaku Co.,Ltd. 5 FY2026 1Q Business Results by Segments Operating incomeby industry segment Net sales Mobility & Imaging 26.9 bn yen YoY︓＋4.5 bn yen YoY ＋3.8 21.7 bn yen Safety Systems ＋0.8 5.2 bn yen Polatechno ＋0.0 0.0 bn yen Aero 3.4 bn yen YoY︓＋1.0 bn yen Fine Chemicals 20.6 bn yen YoY︓＋3.8 bn yen YoY ＋1.7 10.8 bn yen Functional Materials -0.5 6.9 bn yen Color Materials ＋2.7 2.9 bn yen Catalysts 3.3 bn yen YoY︓＋0.8 bn yen Life Science 19.9 bn yen YoY︓＋4.3 bn yen YoY ＋3.7 17.0 bn yen Pharma- ceuticals ＋0.5 2.4 bn yen Agro- chemicals ＋0.0 0.5 bn yen Real Estate 2.2 bn yen YoY︓＋0.3 bn yen
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© Nippon Kayaku Co.,Ltd. 6 FY2026 1Q Business Results by Sub-segments (bn yen) Safety Systems Polatechno AeroFunctional Materials Color Materials Catalysts Pharmaceuticals Agrochemicals Real Estate Net sales 67.4 bn yen (+12.6) Safety Systems 21.7 (YoY:＋3.8) YoY ＋0.2 3.4 NK (Japan) ＋1.06.0 KSE (Czech) ＋1.55.9 KSH (China) ＋0.32.9 KSM (Mexico) ＋0.83.5 KMY (Malaysia) Pharmaceuticals 17.0 (YoY: +3.7) YoY ＋0.76.2 GE (Generic anti-cancer drugs) ＋2.05.2 BS (Biosimilars) ＋0.72.8 New drug, long-listed drugs, etc. ＋0.31.4 CDMO -0.01.3 Food Techno and others (): Changes on YoY 21.7 (+3.8) 5.2 (+0.8) 0.0 (+0.0) 10.8 (+1.7) 6.9 (-0.5) 2.9 (+2.7) 17.0 (+3.7) 2.4 (+0.5) 0.5 (+0.0)
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© Nippon Kayaku Co.,Ltd. 7 FY2026 Business Forecasts (April 2026-March 2027) SECTION ２
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© Nippon Kayaku Co.,Ltd. 8 FY2026 Business Forecasts FY2026 Full yearFY2026 2HFY2026 1H ChangeCurrentPreviousChangeCurrentPreviousChangeCurrentPrevious 10.3270.9260.6ー137.1137.110.3133.8123.5Net sales 1.937.135.2ー18.618.61.918.516.6Operating income by industry segment 1.927.325.4ー13.613.61.913.711.8Operating income 1.827.025.2-0.113.213.31.913.811.9Ordinary income 0.622.922.3-0.79.810.51.313.111.8Profit attributable to owners of parent (bn yen) ・1H forecasts: The exchange rate for the 1H has been revised from 148.00 yen to 160.98 yen. Sales of Safety Systems, Functional Materials, and Pharmaceuticals are strong. Furthermore, a prolonged weaker-than-expected exchange rate has led to upward revision. ・Full year forecasts: The previous forecasts have been revised upward to reflect the revised outlook for the 1H. As a result of this revision, ROE is now projected to be 8.4% (YoY: -0.8, previously 8.2%) and ROIC is now projected to be 6.0% (YoY: +0.7, previously 5.6%). 1H forecasts: Net sales have been revised upward by 10.3 bn yen, and operating income has also been revised upward by 1.9 bn yen accordingly. 2H forecasts: Net sales and operating income forecasts remain unchanged from the previous forecasts.
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© Nippon Kayaku Co.,Ltd. 9 2H forecasts remain unchanged. Full year forecasts have been revised upward to reflect the revised outlook for the 1H FY2026 Business Forecasts by Segments FY2026 Full yearFY2026 2HFY2026 1H ChangeCurrentPreviousChangeCurrentPreviousChangeCurrentPrevious 10.32,70.9260.6ー137.1137.110.3133.8123.5Net Sales 3.8107.4103.6ー52.952.93.854.650.8Mobility & Imaging 3.278.775.5ー39.639.63.239.135.9Fine Chemicals 3.384.881.4ー44.644.63.340.136.8Life Science 1.937.135.2ー18.618.61.918.516.6Operating income by industry segment 1.013.412.4ー6.46.41.07.06.0Mobility & Imaging 0.913.012.1ー6.16.10.96.96.0Fine Chemicals 0.110.710.7ー6.26.20.14.54.5Life Science (bn yen)
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© Nippon Kayaku Co.,Ltd. 10 FY2026 Net Sales Forecasts by Sub-segments (bn yen)B-AFY2026 Current FCT (B) FY2026 Previous FCT (A) FY2025 Actual 3.8107.4103.694.7Mobility & Imaging 3.087.284.276.8Safety Systems (0.2)14.714.913.1NK (Japan) 1.322.921.621.5KSE (Czech Republic) 0.624.423.820.9KSH (China) 0.211.110.910.0KSM (Mexico) 1.014.113.111.3KMY (Malaysia) 0.820.019.117.9Polatechno (0.1)0.20.3ーAero 3.278.775.574.1Fine Chemicals 2.240.438.238.2Functional Materials 1.325.824.424.0Color Materials (0.3)12.612.911.9Catalysts 3.384.881.473.0Life Science 2.972.069.060.9Pharmaceuticals 0.425.124.823.2GE (Generic anti-cancer drugs) 2.517.815.317.0BS (Biosimilars) (0.1)15.315.59.4New drugs, Long-listed drugs, etc. 0.28.48.26.0CDMO 0.05.45.45.3Food Techno and others 0.410.810.410.1Agrochemicals 0.02.02.02.0Real Estate
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© Nippon Kayaku Co.,Ltd. 11 Performance Overview by Business Units SECTION 3
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© Nippon Kayaku Co.,Ltd. 12 Mobility & Imaging Business Unit 37.4 39.3 44.1 43.1 8.8 9.1 10.5 9.6 0.1 0.2 46.3 48.4 54.6 52.9 5.2 5.4 7.0 6.4 0.0 5.0 10.0 15.0 0.0 20.0 40.0 60.0 1H 2H 1H 2H (bn yen) FY2026FY2025 Net sales 2H Forecast 2Q Forecast1Q4Q3Q2Q1Q 52.927.626.924.324.223.922.4B.U. Total 43.122.421.719.619.719.517.9Safety Systems 9.65.25.24.64.54.44.5Polatechno 0.20.10.0ーーーーAero 6.43.63.42.82.72.92.4 Operating income by industry segment Factors behind the YoY difference1Q Actual Net Sales ■Safety Systems ◇Sales of inflators and micro gas generators increased at Asian bases. ◇Squib sales increased at European base. ■Polatechno ◇Light-shielding films for head-up displays saw recovered demand in Chinese automobiles, while remaining strong for Japanese and European automobiles. ◇X-ray analyzers components performed well. Operating Income by industry segments ◇Safety Systems increased profits due to the pass-through effects, a pause in raw material price hikes, and the yen depreciation. ◇Polatechno improved profitability through product portfolio restructuring, with the yen depreciation also contributing. Factors behind the YoY differenceForecasts in 2Q and beyond Net Sales ■Safety Systems ◇Inflators for Chinese customers, micro gas generators for Korean customers, and squibs for European customers to maintain their strong performance. ■Polatechno ◇Light-shielding films for head-up displays to maintain strong performance. ◇X-ray analyzers components to perform well. ■Aero ◇Sales channels in the North American market to expand and shipments in the Chinese market to commence. Operating Income by industry segments ◇Safety Systems to maintain increased profits by expanding demand, further promoting price pass-throughs, and working to reduce raw material costs globally. ◇Polatechno to improve profitability via head-up displays and X-ray analyzer components. Net sales Operating Income by industry segment FY2025 F Y2026 Forecast Safety Systems Polatechno Aero
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© Nippon Kayaku Co.,Ltd. 13 Fine Chemicals Business Unit 18.5 19.7 21.3 19.1 13.0 11.1 13.2 12.6 2.8 9.1 4.6 8.0 34.2 39.9 39.1 39.6 5.0 7.0 6.9 6.1 0.0 5.0 10.0 15.0 0.0 16.0 32.0 48.0 1H 2H 1H 2H (bn yen) FY2026FY2025 Net sales 2H Forecast 2Q Forecast1Q4Q3Q2Q1Q 39.618.520.624.115.817.516.7B.U. Total 19.110.510.810.49.39.59.0Functional Materials 12.66.36.95.65.45.57.5Color Materials 8.01.82.98.11.12.50.2Catalysts 6.13.63.34.92.12.52.5 Operating income by industry segment Factors behind the YoY difference1Q Actual Net Sales ■Functional Materials ◇Expansion of the semiconductor market in advanced fields, including AI and high-end servers. ◇Encapsulant demand remains strong. ■Color Materials ◇Sales decreased in the previous 1Q due to front-loading demand driven by concerns over tariff issues. ◇Demand remains strong for both industrial inkjet inks and thermal developers. ■Catalysts ◇Sales increased due to differences in shipment timings. Operating Income by industry segment ◇Profit increased due to higher sales. Factors behind the YoY differenceForecasts in 2Q and beyond Net Sales ■Functional Materials ◇Continued expansion of the semiconductor market in both advanced and general-purpose fields. ◇Semiconductor manufacturing equipment also continues to see strong demand, with an increase in inquiries from customers. ■Color Materials ◇Steady demand to be maintained for industrial inkjet inks and consumer inkjet colorants. ◇Progress to be made in the replacements with non-phenolic thermal developers. ■Catalysts ◇Demand to remain strong throughout the year. Operating Income by industry segment ◇Profit to increase due to higher sales. Net sales Operating Income by industry segment FY2025 F Y2026 Forecast Functional Materials Color Materials Catalysts
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© Nippon Kayaku Co.,Ltd. 14 Life Science Business Unit 28.2 32.7 34.6 37.4 3.9 6.2 4.5 6.2 1.0 1.0 1.0 1.0 33.1 39.9 40.1 44.6 5.3 4.4 4.5 6.2 0.0 4.0 8.0 12.0 0.0 16.0 32.0 48.0 1H 2H 1H 2H (bn yen) FY2026FY2025 Net sales 2H Forecast 2Q Forecast1Q4Q3Q2Q1Q 44.620.219.918.921.017.415.7B.U. Total 37.417.617.015.417.314.913.3Pharma- ceuticals 6.22.12.43.03.22.01.9Agro- chemicals 1.00.50.50.50.50.50.5Real Estate 6.22.42.21.03.43.51.9 Operating income by industry segment Factors behind the YoY difference1Q Actual Net Sales ■Pharmaceuticals ◇Biosimilars and new products performing well. ■New drugs ◇IBTROZI® market penetration is progressing. ■Biosimilars ◇Adalimumab BS market penetration expanding (about 21% in Jun., 19% in Mar.). ■Generic anti-cancer drugs ◇Market penetration of Abiraterone Acetate Tablets 250mg「NK」. ■Agrochemicals ◇Overseas: Strong performance due to increased sales of Flomethoquin. Operating Income by industry segment ◇Profit increased due to higher sales. Factors behind the YoY differenceForecasts in 2Q and beyond Net Sales ■Pharmaceuticals ◇Net sales are expected to increase, offset by the penetration of new drugs and increased volume from biosimilars. ■New drugs ◇Further market penetration of IBTROZI ® and PORTRAZZA® in the lung cancer domain. ◇Market penetration of ALAGLIO ® in the urology domain, promoting co-promotion. ■Biosimilars ◇Further market penetration of Adalimumab BS. ■Generic anti-cancer drugs ◇Further market penetration of Abiraterone Acetate Tablets 250mg「NK」. ■Agrochemicals ◇Overseas: expansion of registered countries. Operating Income by industry segment ◇Profit are expected to increase, offset by the penetration of new drugs and increased volume from biosimilars. FY2025 F Y2026 Forecast Net sales Operating Income by industry segment Pharma- ceuticals Agro- chemicals Real Estate
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© Nippon Kayaku Co.,Ltd. 15 Status of the New Pharmaceuticals Pipeline (as of August 3, 2026) CharacteristicsOriginDevelopment code (Generic name)Stage Indication expansion study. Disease development: Visualization of cancer during ovarian cancer resection SBI Pharmaceuticals (Japan) ASTROPIC Test (Aminolevulinic acid hydrochloride) Phase Ⅲ New Drugs Indication expansion study. Disease development: EGFR gene-amplified unresectable advanced or recurrent esophageal and gastric carcinoma Eli Lilly (US) NEO-GEAR T est (Necitumumab)Phase Ⅱ Indication expansion study. Disease development: Postoperative adjuvant therapy for ROS1 fusion gene-positive non-small cell lung cancer AnHeart Therapeutics [Nuvation Bio] (US) Taletrectinib adipateUnder Preparation In Vitro Diagnostic Products. Under development in Singapore; licensing agreement signed for exclusive development and marketing rights in Japan BioCheetah (Singapore)VECanDxTM Under preparation Diag- nostic reagent
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© Nippon Kayaku Co.,Ltd. 16 The Impact of the Middle East Situation Should assumptions change owing to prolonged effects such as decreased demand due to market stagnation or soaring energy prices, we shall promptly disclose the relevant information Safety Systems seeing slightly impacted sales in Japan and KSH (China). Raw material prices remain high.Mobility & Imaging All divisions have essentially passed on the soaring raw material costs through product prices. Catalysts customers operation rates are also on a recovery trend. Fine Chemicals Limited impact, as business is domestic-focused.Life Science There remains the possibility of a downward revision in the first half due to production adjustments, but the full-year forecasts are expected to hold ・Assumptions: (External Environment) The Strait of Hormuz blockade continues for several months, with supply chain disruptions affecting us throughout the year, leading to continued high raw material prices We have not factored in production scale-backs due to raw material procurement constraints by suppliers (Internal Environment) If we cannot absorb the increase in raw material costs through our own efforts, we will generally pass on such costs through price adjustments ・1Q Actual Situation for each business unit:
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© Nippon Kayaku Co.,Ltd. 17 The Impact of the Kumamoto Earthquake in 2026 The situation may change over time, and we shall promptly disclose any impact on our business performance if such situations arise Across all businesses, the impact on customers and supply chain has been limited.Mobility & Imaging While some customers were affected, our impact was limited.Fine Chemicals Limited impact.Life Science No direct damage to our company Customer damage and impact on business performance
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© Nippon Kayaku Co.,Ltd. 18 Appendix SECTION 4
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© Nippon Kayaku Co.,Ltd. 19 FY2026 1Q Balance Sheet (bn yen) (): Changes from the end of March 2026 Cash and deposits, Securities 52.4 (-2.1) Inventories 85.3 (+1.0) Total Assets 419.9 (+21.1) Treasury stock -2.9 (+13.6) Translation adjustments 41.0 (+3.1) Retained earnings 194.8 (-15.5) Property, plant and equipment 122.6 (+1.7) Investments and other assets 72.8 (+18.9) Interest-bearing debt 68.2 (+19.0) Equity ratio 67.3% (-2.7) Cross-shareholdings to net assets ratio 9.0% (+1.1) Liabilities 136.2 (+17.6) Equity 282.6 (+3.6) Current Assets 220.7 (+0.6) Non- Current Assets 199.1 (+20.6)
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© Nippon Kayaku Co.,Ltd. 20 Capital Investments/ Depreciation and Amortization/ R&D Expenses FY2026 FY2025 ActualFY2024 Actual Progress1Q ActualForecasts 13 %3.527.016.126.6Capital Investments 12 %1.512.76.89.5Mobility & Imaging 9 %0.77.64.19.0Fine Chemicals 22 %1.15.24.16.7Life Science 12 %0.21.61.11.5Others 23 %3.515.015.613.9Depreciation and Amortization 24 %1.77.27.06.7Mobility & Imaging 22 %1.04.34.93.8Fine Chemicals 16 %0.52.92.52.8Life Science 22 %0.10.60.70.6Others 22 %3.415.612.615.1R&D Expenses Major Capital Investments in FY2026 ※ investment factories are listed in parentheses Enhancement of Automotive Safety Parts Manufacturing Facilities (KSH, KSM, KMY)MI Technology Building (Fukuyama)FC Integrated Quality Assurance Building (Takasaki)LS ※ The Pharmaceutical plant investment currently under consideration has not been included
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© Nippon Kayaku Co.,Ltd. 21 Status of Shareholder Returns 40.7% 107.6%56.8% 100.2% 8.0 bn3.0 bn 70.4% 3.0 bn 16.5 bn 103.4% 15.0 bn Total Payout Ratio Share Buybacks (yen) Progressive Dividends Payout Ratio of 40%+ Flexible Implementation of Share Buybacks × 40.7% 39.3% 50.4% 181.4% 56.0% 40.9% 41.6% FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Payout ratio 30 yen 40 yen 45 yen 45 yen 60 yen 66 yen （plan） Dividend year amount/share 66 yen ※Cumulative amount of share buybacks by June 30: 2.6 bn yen
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© Nippon Kayaku Co.,Ltd. 22 Business Results (FY2024-FY2026 Forecasts) FY2026 ForecastsFY2025 ActualFY2024 Actual Full Year2H1HFull Year2H1HFull Year2H1H 270.9137.1133.8241.9128.3113.6222.6113.5109.1Net sales 37.118.618.532.316.815.529.614.115.5Operating income by industry segment 9.85.04.89.84.94.99.24.84.4General and administrative expenses, etc. 27.313.613.722.511.810.620.49.211.2Operating income 10.1%9.9%10.3%9.3%9.2%9.3%9.2%8.1%10.2%(Operating income margin) (0.3)(0.4)0.13.02.80.21.91.40.5Non-operating income (loss) 27.013.213.825.514.610.822.310.611.7Ordinary income 4.6(0.6)5.18.12.35.7(0.3)2.8(3.0)extraordinary income (loss) 31.612.618.933.617.016.622.013.48.6Profit before income taxes 8.62.85.88.94.24.84.41.82.6Income taxes 0.10.00.00.10.00.00.10.00.0Profit (non-controlling interests) 22.99.813.124.612.811.717.511.56.0Profit attributable to owners of parent 160.98 (1H Forecast) 148.00 (2H Forecast)150.67 (Actual)152.62 (Actual)Exchange rate (JPY/USD) (bn yen)
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The information in this presentation constitutes forward-looking statements regarding future events and performance, and was prepared using information available at the time of creation, including relevant assumption-based and plan-based forecasts for future events and performance. However, this is not, and should not be construed as, a warranty, guarantee, or promise of future earnings performance. Actual earnings results may differ substantially from the forecasts herein due to various factors. This presentation does not constitute an offer or solicitation for investment. Investors are requested to make investment decisions based on their own discretion and judgment. ■IR Newsletter Subscription We will inform you of the latest information on timely disclosures and IR via email. Please register.