Interim report
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This document is an English translation of parts of the Japanese-language original. All financial information has been prepared in accordance with generally accepted accounting principles in Japan. Summary of Consolidated Financial Results [Japanese GAAP] For the First Quarter of the Fiscal Year Ending March 31, 2027 August 3, 20 26 Listed company: Nippon Kayaku Co., Ltd. (URL https://www.nipponkayaku.co.jp/english/) Listed stock exchange: Prime Market, Tokyo Stock Exchange Code No.: 4272 Representative (name, position): Shigeyuki Kawamura, President Director in charge of inquiries: Tsutomu Kawamura, Senior Director, General Manager of Finance & Accounting Division Scheduled date for start of dividend payments: – Preparation of supplementary materials for financial results: Yes Financial results presentation meeting: Yes (for securities analysts and institutional investors) 1. Consolidated Business Results for the First Quarter of the Fiscal Year Ending March 31, 2027 (April 1, 2026– June 30, 2026) (Figures shown are rounded down to the nearest million yen.) (1) Consolidated Operating Results (Percentages indicate amount of change from the same period of the previous fiscal year.) Net sales Operating income Ordinary income Profit attributable to owners of parent Million yen % Million yen % Million yen % Million yen % First quarter of fiscal year ending March 31, 2027 67,402 23.1 6,740 54.3 7,390 81.7 6,081 41.7 First quarter of fiscal year ended March 31, 2026 54,758 2.1 4,367 (21.6) 4,067 (44.1) 4,292 20.3 Note: Comprehensive income First quarter of fiscal year ending March 31, 2027: 11,549 million yen (125.9%) First quarter of fiscal year ended March 31, 2026: 5,111 million yen ((45.5)%) Profit attributable to owners of parent per share – basic Profit attributable to owners of parent per share – diluted Yen Yen First quarter of fiscal year ending March 31, 2027 41.08 41.08 First quarter of fiscal year ended March 31, 2026 27.29 27.29 (2) Consolidated Financial Position Total assets Net assets Equity ratio Million yen Million yen % As of June 30, 2026 419,884 283,669 67.3 As of March 31, 2026 398,736 280,104 70.0 Reference: Equity As of June 30, 2026: 282,556 million yen As of March 31, 2026: 279,002 million yen
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Nippon Kayaku Co., Ltd. Summary of Consolidated Financial Results [Japanese GAAP] For the First Quarter of the Fiscal Year Ending March 31, 2027 This document is an English translation of parts of the Japanese-language original. All financial information has been prepared in accordance with generally accepted accounting principles in Japan. 2. Status of Dividends Dividend amount per share End of first quarter End of second quarter End of third quarter End of year Full year Yen Fiscal year ended March 31, 2026 – 30.00 – 36.00 66.00 Fiscal year ending March 31, 2027 – Fiscal year ending March 31, 2027 (forecast) 33.00 – 33.00 66.00 Note: Changes to the most recent dividend forecast: None 3. Consolidated Business Results Forecasts for the Fiscal Year Ending March 31, 2027 (April 1, 2026–March 31, 2027) (Percentages indicate amount of change from the same period of the previous fiscal year.) Net sales Operating income Ordinary income Profit attributable to owners of parent Profit attributable to owners of parent per share Million yen % Million yen % Million yen % Million yen % Yen First half 133,800 17.8 13,700 29.0 13,800 27.3 13,100 12.1 89.35 Full year 270,900 12.0 27,300 21.6 27,000 6.0 22,900 (7.1) 158.66 Note: Changes to the most recent forecast for consolidated business results: Yes Notes (1) Significant changes in subsidiaries during the first quarter (changes in designated subsidiaries that result in changes in scope of consolidation): None Newly consolidated: (company name), Deconsolidated: (company name) (2) Adoption of special accounting methods for presenting the quarterly consolidated financial statements: None (3) Changes to accounting policies and estimates and restatements [1] Changes to accounting policies associated with revision of accounting standards or similar items: None [2] Changes other than [1]: Yes [3] Changes to accounting estimates: Yes [4] Restatements: None * We have changed our depreciation method from the first quarter of this consolidated fiscal year. This change falls under the category of “cases where it is difficult to distinguish between a change in accounting policy and a change in accounting estimate. “For further details, please refer to “(3) Notes to Quarterly Consolidated Financial Statements (Changes in accounting policies that are difficult to distinguish from changes in accounting estimates) ” on page 8 of the attached documents. (4) Number of shares issued (common stock) [1] Number of shares issued at end of the fiscal period (including treasury stock) As of June 30, 2026: 148,700,000 shares As of March 31, 2026: 160,000,000 shares [2] Number of treasury stock at end of the fiscal period As of June 30, 2026: 1,449,578 shares As of March 31, 2026: 11,505,220 shares [3] Average number of shares during the fiscal period (cumulative) First quarter of fiscal year ending March 31, 2027: 148,023,775 shares First quarter of fiscal year ended March 31, 2026: 157,280,496 shares
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Nippon Kayaku Co., Ltd. Summary of Consolidated Financial Results [Japanese GAAP] For the First Quarter of the Fiscal Year Ending March 31, 2027 This document is an English translation of parts of the Japanese-language original. All financial information has been prepared in accordance with generally accepted accounting principles in Japan. * Quarterly consolidated financial statements subject to review by a certified public accountant or audit firm: No * Analysis related to appropriate use of the business results forecasts, and other notes (Disclaimer concerning forward-looking statements) The information in this report constitutes forward- looking statements regarding future events and performance. This information is based on the beliefs and assumptions of management in light of information currently available to it at the time of announcem ent and subject to a number of uncertainties that may affect future results. Actual business results may differ substantially from the forecasts herein due to various factors. For matters pertaining to business forecasts, please refer to “(3) Analysis of Forward-looking Statements, Including Consolidated Business Results Forecasts” on page 3 of the Supplementary Information. (How to obtain the supplementary materials for quarterly financial results) We have scheduled a teleconference for securities analysts and institutional investors on Monday, August 3, 2026. The materials for the briefing will be posted on the corporate website. Supplementary Information Contents 1. Qualitative Information Concerning Results for the First Quarter 2 (1) Analysis of Operating Results 2 (2) Analysis of Financial Position 3 (3) Analysis of Forward-looking Statements, Including Consolidated Business Results Forecasts 3 2. Quarterly Consolidated Financial Statements and Notes to Quarterly Consolidated Financial Statements 4 (1) Quarterly Consolidated Balance Sheets 4 (2) Quarterly Consolidated Statements of Income & Consolidated Statements of Comprehensive Income 6 (3) Notes to Quarterly Consolidated Financial Statements 8 (Notes Regarding Assumptions for the Going Concern) 8 (Notes in Case of Significant Change in Shareholders’ Equity) 8 (Changes to Accounting Policies that are Difficult to Distinguish from Changes in Account- ing Estimates) 8 (Segment Information) 8 (Notes on Statements of Cash Flows) 9
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Nippon Kayaku Co., Ltd. Summary of Consolidated Financial Results [Japanese GAAP] For the First Quarter of the Fiscal Year Ending March 31, 2027 This document is an English translation of parts of the Japanese-language original. All financial information has been prepared in accordance with generally accepted accounting principles in Japan. 2 1. Qualitative Information Concerning Results for the First Quarter (1) Analysis of Operating Results During the first quarter of the fiscal year ending March 31, 2027 (April 1 to June 30, 2026), the global economy maintained steady growth but faced continuing uncertainty from geopolitical risks, such as the protracted situa- tion in Ukraine, heightened tensions in the Middle East, and the structuralization of the U.S.-China confrontation. The Nippon Kayaku Group has launched its mid-term management plan “Evolution2035 Phase1” since the first quarter of the fiscal year ending March 31, 2027, amid such conditions. Under Phase 1, we aim to enhance medium- to long-term corporate value by improving capital efficiency and strengthening our capacity for sus- tainable growth. To this end, we have identified key company-wide initiatives, working to advance them. As a result, net sales for the first quarter of the fiscal year ending March 31, 2027 totaled 67,402 million yen, an increase of 1 2,644 million yen (23.1%) year-on-year. Sales in all business units outperformed the first quarter of the previous fiscal year. Operating income totaled 6,740 million yen, an increase of 2,372 million yen ( 54.3%) year-on-year. This increase was due to the outperformance of all business units. Ordinary income totaled 7,390 million yen, an increase of 3,323 million yen ( 81.7%) year-on-year. This increase was mainly due to foreign exchange gains. Profit attributable to owners of parent was 6,081 million yen, an increase of 1,788 million yen (41.7%) year- on-year. The increase was mainly due to a gain on sale of investment securities. Performance by business segment is as described below. [Mobility & Imaging Business Unit] Sales rose to 26,927 million yen, an increase of 4,540 million yen (20.3%) year-on-year. In the safety systems business, global automobile production weakened due to slowing demand in China. However, the Group increased sales, as capacity expansion in China and Malaysia in response to the long-term increase in the number of installed automotive safety components proved effective. Accordingly, sales of airbag inflators, micro gas generators for seatbelt pretensioners, and squibs all outperformed year -on-year. The safety systems business overall outperformed year-on-year as a result. In the Polatechno business, LCD projector components decline, while shades for HUDs recorded growth. Components for X -ray analysis systems outperformed year -on-year, although performance varied by product type. The Polatechno business overall outperformed year-on-year as a result. In the Aero business, drone safety equipment have been growing, mainly in North America. Segment profit totaled 3,392 million yen, an increase of 1,034 million yen (43.9%) year-on-year. This in- crease resulted from an increase of net sales in the safety systems business and the Polatechno business. [Fine Chemicals Business Unit] Sales rose to 20,554 million yen, an increase of 3,843 million yen (23.0%) year-on-year. The functional materials business as a whole outperformed the first quarter of the previous fiscal year. This outperformance resulted from firm demand for every product group due to strong performance both in AI and high-end servers in cutting-edge areas of the semiconductor market and in the general-purpose semiconductor market. The color materials business as a whole underperformed the first quarter of the previous fiscal year. This resulted from front-loaded demand due to concerns over U.S. tariffs during the first quarter of the previous fiscal year, despite firm sales of industrial inkjet ink and home inkjet printer colorants. The catalyst business outperformed year-on-year. Segment profit totaled 3,324 million yen, an increase of 828 million yen (33.2%) year-on-year. Sales growth in the functional materials business and the catalyst business contributed to this increase in segment profit. [Life Science Business Unit] Sales rose to 19,920 million yen, an increase of 4,260 million yen (27.2%) year-on-year. The pharmaceuticals business as a whole outperformed the first quarter of the previous fiscal year. This outperformance was due to increased market penetration of the anti-cancer drug IBTROZI ® Capsules 200mg, PORTRAZZA® I.V . Infusion, an anti -EGFR human monoclonal antibody, and the antibody biosimilars BEV ACIZUMAB BS and ADALIMUMAB BS for the Japanese market . Exports also outperformed year-on- year, despite underperformance in sales of active pharmaceutical ingredients for the Japanese domestic market and diagnostic drugs. The agrochemicals business as both sales in the domestic market and exports outperformed year-on-year.
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Nippon Kayaku Co., Ltd. Summary of Consolidated Financial Results [Japanese GAAP] For the First Quarter of the Fiscal Year Ending March 31, 2027 This document is an English translation of parts of the Japanese-language original. All financial information has been prepared in accordance with generally accepted accounting principles in Japan. 3 Sales in the real estate business outperformed the first quarter of the previous fiscal year. Segment profit totaled 2,184 million yen, an increase of 321 million yen (17.3%) year-on-year. This increase resulted from an increase in net sales in the pharmaceuticals business and the agrochemicals business. (2) Analysis of Financial Position Status of Assets, Liabilities, and Net Assets Total assets were 419,884 million yen, an increase of 21,148 million yen from the end of the previous fiscal year. The main increases were in long-term prepaid expenses, an increase of 15,562 million yen; investment securities, an increase of 3,545 million yen; and m erchandise and finished goods , an increase of 2,567 million yen. The main decrease was in securities, a decrease of 3,098 million yen. Liabilities were 136,214 million yen, an increase of 17,582 million yen from the end of the previous fiscal year. The main increases were in short-term loans payable, an increase of 20,002 million yen; and deferred tax liabilities under non-current liabilities, an increase of 2,186 million yen. The main decrease was in income taxes payable, a decrease of 4,432 million yen. Net assets were 283,669 million yen, an increase of 3,565 million yen from the end of the previous fiscal year. The main increases were in treasury stock, an increase of 13,611 million yen; translation adjustments, an increase of 3,111 million yen; and unrealized holding gains on available-for-sale securities, an increase of 2,483 million yen. The main decrease was in retained earnings, a decrease of 15,481 million yen. (3) Analysis of Forward-looking Statements, Including Consolidated Business Results Forecasts The business environment surrounding the Nippon Kayaku Group faces the risk of an economic downswing due to geopolitical risks, U.S. tariff hikes, soaring crude oil prices, and other concerning factors. Under these conditions, the Nippon Kayaku Group aims to respond flexibly to changes in the business en- vironment and pursue optimal use of operating capital to increase shareholder value, as well as expand existing businesses in global growth markets, accelerate the development of new businesses and new products, and en- hance profits. The business results forecasts for the fiscal year ending March 31, 2027 announced on May 12, 2026 have been revised. See the Notice of Revisions to the Business Results Forecasts announced on August 3, 2026 for more information.
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Nippon Kayaku Co., Ltd. Summary of Consolidated Financial Results [Japanese GAAP] For the First Quarter of the Fiscal Year Ending March 31, 2027 This document is an English translation of parts of the Japanese-language original. All financial information has been prepared in accordance with generally accepted accounting principles in Japan. 4 2. Quarterly Consolidated Financial Statements and Notes to Quarterly Consolidated Financial Statements (1) Quarterly Consolidated Balance Sheets As of March 31, 2026 As of June 30, 2026 Million yen Assets Current assets Cash and deposits 50,032 51,053 Notes and accounts receivable – trade 67,568 68,348 Electronically recorded monetary claims – operating 3,244 3,740 Securities 4,463 1,364 Merchandise and finished goods 53,225 55,792 Work in process 1,412 1,487 Raw materials and stores 29,672 27,984 Other 10,649 11,072 Allowance for doubtful accounts (114) (105) Total current assets 220,153 220,739 Non-current assets Property, plant and equipment Buildings and structures, net 51,976 52,689 Machinery, equipment and vehicles, net 30,563 32,268 Other, net 38,425 37,664 Total property, plant and equipment 120,966 122,623 Intangible assets Goodwill 499 463 Other 3,255 3,294 Total intangible assets 3,755 3,758 Investments and other assets Investment securities 30,600 34,146 Long-term prepaid expenses 6,791 22,353 Net defined benefit asset 12,285 12,341 Other 4,232 3,971 Allowance for doubtful accounts (49) (49) Total investments and other assets 53,860 72,763 Total non-current assets 178,582 199,145 Total assets 398,736 419,884
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Nippon Kayaku Co., Ltd. Summary of Consolidated Financial Results [Japanese GAAP] For the First Quarter of the Fiscal Year Ending March 31, 2027 This document is an English translation of parts of the Japanese-language original. All financial information has been prepared in accordance with generally accepted accounting principles in Japan. 5 As of March 31, 2026 As of June 30, 2026 Million yen Liabilities Current liabilities Notes and accounts payable – trade 24,225 23,647 Short-term loans payable 11,013 31,015 Accounts payable – other 16,342 16,950 Income taxes payable 5,588 1,156 Other 7,959 8,836 Total current liabilities 65,128 81,606 Non-current liabilities Bonds payable 14,000 14,000 Long-term loans payable 24,171 23,168 Net defined benefit liability 356 358 Other 14,975 17,081 Total non-current liabilities 53,503 54,608 Total liabilities 118,631 136,214 Net assets Shareholders’ equity Common stock 14,932 14,932 Additional paid-in capital 15,879 15,879 Retained earnings 210,323 194,842 Treasury stock (16,503) (2,891) Total shareholders’ equity 224,632 222,763 Accumulated other comprehensive income Unrealized holding gains on available-for-sale securities 11,340 13,823 Translation adjustments 37,847 40,958 Remeasurements of defined benefit plans 5,181 5,010 Total accumulated other comprehensive income 54,369 59,793 Non-controlling interests 1,102 1,113 Total net assets 280,104 283,669 Total liabilities and net assets 398,736 419,884
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Nippon Kayaku Co., Ltd. Summary of Consolidated Financial Results [Japanese GAAP] For the First Quarter of the Fiscal Year Ending March 31, 2027 This document is an English translation of parts of the Japanese-language original. All financial information has been prepared in accordance with generally accepted accounting principles in Japan. 6 (2) Quarterly Consolidated Statements of Income & Consolidated Statements of Comprehensive Income Quarterly Consolidated Statements of Income First quarter of fiscal year ended March 31, 2026 First quarter of fiscal year ending March 31, 2027 Million yen Net sales 54,758 67,402 Cost of sales 38,191 46,488 Gross profit on sales 16,566 20,914 Selling, general and administrative expenses 12,198 14,174 Operating income 4,367 6,740 Non-operating income Interest income 136 119 Dividend income 463 366 Equity in earnings of affiliates 81 85 Foreign exchange gains – 249 Other 237 171 Total non-operating income 918 992 Non-operating expenses Interest expense 142 233 Foreign exchange losses 929 – Other losses 147 109 Total non-operating expenses 1,218 342 Ordinary income 4,067 7,390 Extraordinary income Gain on sale of non-current assets 2 11 Gain on sale of investment securities 2,131 1,725 National subsidies – 98 Total extraordinary income 2,133 1,834 Extraordinary loss Loss on disposal of non-current assets 188 197 Loss on tax purpose reduction entry of non-current assets – 96 Extra retirement payments – 40 Total extraordinary loss 188 334 Profit before income taxes 6,013 8,891 Income taxes – current 996 1,385 Income taxes – deferred 699 1,414 Total income taxes 1,696 2,800 Profit 4,316 6,091 Profit attributable to non-controlling interests 24 9 Profit attributable to owners of parent 4,292 6,081
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Nippon Kayaku Co., Ltd. Summary of Consolidated Financial Results [Japanese GAAP] For the First Quarter of the Fiscal Year Ending March 31, 2027 This document is an English translation of parts of the Japanese-language original. All financial information has been prepared in accordance with generally accepted accounting principles in Japan. 7 Quarterly Consolidated Statements of Comprehensive Income First quarter of fiscal year ended March 31, 2026 First quarter of fiscal year ending March 31, 2027 Million yen Profit 4,316 6,091 Other comprehensive income Unrealized holding gains (losses) on available-for-sale se- curities (885) 2,480 Translation adjustments 1,552 3,146 Remeasurements of defined benefit plans 127 (172) Share of other comprehensive income of companies accounted for by the equity-method 1 4 Total other comprehensive income 795 5,458 Comprehensive income 5,111 11,549 Comprehensive income attributable to: Owners of parent 5,110 11,505 Non-controlling interests 1 44
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Nippon Kayaku Co., Ltd. Summary of Consolidated Financial Results [Japanese GAAP] For the First Quarter of the Fiscal Year Ending March 31, 2027 This document is an English translation of parts of the Japanese-language original. All financial information has been prepared in accordance with generally accepted accounting principles in Japan. 8 (3) Notes to Quarterly Consolidated Financial Statements (Notes Regarding Assumptions for the Going Concern) No items to report (Notes in Case of Significant Change in Shareholders’ Equity) [1] Acquisition of Treasury Stock The Company purchased 1,244,100 shares of treasury stock for 2,604 million yen during the first quarter of the fiscal year ending March 31, 2027 as approved by resolution of the Board of Directors on May 12, 2026. [2] Cancellation of Treasury Stock The Company canceled 11,300,000 shares of treasury stock on May 22, 2026 as approved by resolution of the Board of Directors on May 12, 2026. This resulted in decreases of 16,216 million yen in other retained earnings and 16,216 million yen in treasury stock. As a result, retained earnings stood at 194,842 million yen and treasury stock, at 2,891 million yen as of the end of the first quarter of the fiscal year ending March 31, 2027. (Changes to Accounting Policies that are Difficult to Distinguish from Changes to Accounting Estimates) (Change in the Depreciation Method for Property, Plant and Equipment) The Company and its domestic consolidated subsidiaries have changed the depreciation method for property, plant and equipment (excluding leased assets), which had primarily used the declining-balance method, to the straight-line method, effective from the first quarter of the fiscal year ending March 31, 2027. In formulating the Group’s new mid-term management plan, the Group reviewed and examined how its property, plant and equipment is used in light of changes in the business environment and revisions to its management policies. As a result, the Group concluded that allocating the acquisition cost evenly over the useful life is more suited to its actual use and that the operation of production facilities is expected to remain stable going forward. Accordingly, the Group determined that the straight-line method is more reasonable and more appropriately reflects its actual business conditions. As a result, compared to the previous method, operating income, ordinary income, and profit before income taxes for the first quarter of the fiscal year ending March 31, 2027 each increased by 189 million yen. (Segment Information) I. First quarter of the fiscal year ended March 31, 2026 (April 1, 2025–June 30, 2025) 1, Information on sales and profit (loss) by reportable segment Reportable segments Adjustments (Note 1) Consolidated (Note 2) Mobility & Imaging Business Unit Fine Chemicals Business Unit Life Science Business Unit Total Million yen Sales Sales to third parties 22,387 16,710 15,659 54,758 – 54,758 Intersegment sales and transfers 3 51 0 55 (55) – Total 22,391 16,762 15,659 54,813 (55) 54,758 Segment profit 2,357 2,496 1,863 6,717 (2,349) 4,367 Note 1: The 2,349 million yen downward adjustment to segment profit reflects 2,318 million yen in corporate ex- penses not allocable to the reportable segments and 30 million yen in eliminations for intersegment trans- actions. The corporate expenses are mainly a general and administrative expense that is not attributed to the reportable segments. Note 2: Segment profit has been adjusted to correspond with the total operating income as shown in the consolidated statements of income. 2. Information concerning impairment losses on non-current assets, goodwill, etc. by reportable segment No items to report
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Nippon Kayaku Co., Ltd. Summary of Consolidated Financial Results [Japanese GAAP] For the First Quarter of the Fiscal Year Ending March 31, 2027 This document is an English translation of parts of the Japanese-language original. All financial information has been prepared in accordance with generally accepted accounting principles in Japan. 9 II. First quarter of the fiscal year ending March 31, 2027 (April 1, 2026–June 30, 2026) 1, Information on sales and profit (loss) by reportable segment Reportable segments Adjustments (Note 1) Consolidated (Note 2) Mobility & Imaging Business Unit Fine Chemicals Business Unit Life Science Business Unit Total Million yen Sales Sales to third parties 26,927 20,554 19,920 67,402 – 67,402 Intersegment sales and transfers – 0 – 0 (0) – Total 26,927 20,555 19,920 67,403 (0) 67,402 Segment profit 3,392 3,324 2,184 8,901 (2,161) 6,740 Note 1: The 2,161 million yen downward adjustment to segment profit reflects 2,169 million yen in corporate ex- penses not allocable to the reportable segments and 8 million yen in eliminations for intersegment transac- tions. The corporate expenses are mainly a general and administrative expense that is not attributed to the reportable segments. Note 2: Segment profit has been adjusted to correspond with the total operating income as shown in the consolidated statements of income. 2. Information concerning impairment losses on non-current assets, goodwill, etc. by reportable segment No items to report (Notes on Statements of Cash Flows) We do not produce Statements of Cash Flows for the first quarter of the fiscal year ending March 31, 2027. The amounts for depreciation and amortization (excluding goodwill and including amortization of intangible assets) and amortization of goodwill for the first quarter of the fiscal year ending March 31, 2027 are shown below. First quarter of fiscal year ended March 31, 2026 First quarter of fiscal year ending March 31, 2027 Million yen Depreciation and amortization 3,568 3,453 Amortization of goodwill 35 36