Interim report
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1 Translation Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Summary of Consolidated Financial Results for the Six Months Ended September 30, 2025 (Based on Japanese GAAP) October 31, 2025 Company name: FUSO CHEMICAL CO., LTD. Stock exchange listing: Tokyo Stock code: 4368 URL https://fusokk.co.jp/eng/ Representative: Representative Director & President Shinichi Sugita Inquiries: Board Director, Division Manager of Administration Division Hiroyuki Ito TEL 03-3639-6311 Scheduled date to file semi-annual securities report: November 7, 2025 Scheduled date to commence dividend payments: December 10, 2025 Preparation of supplementary material on financial results: No Holding of financial results meeting: Yes (for institutional investors) (Amounts less than one million yen are rounded down) 1. Consolidated financial results for the six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) (1) Consolidated operating results (cumulative) Percentages indicate year-on-year changes Net sales Operating profit Ordinary profit Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Six months ended September 30, 2025 37,705 8.5 9,746 19.7 9,807 23.4 6,879 22.7 Six months ended September 30, 2024 34,756 28.1 8,145 45.9 7,948 27.3 5,608 30.8 Note: Comprehensive income Six months ended September 30, 2025 ¥7,062 million [41.6%] Six months ended September 30, 2024 ¥4,989 million [(8.8)%] Earnings per share Diluted earnings per share Yen Yen Six months ended September 30, 2025 195.12 – Six months ended September 30, 2024 159.09 – Reference: Operating profit before depreciation and amortization (Consolidated operating profit + depreciation and amortization) Six months ended September 30, 2025 ¥14,328 million Six months ended September 30, 2024 ¥11,847 million (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share Millions of yen Millions of yen % Yen As of September 30, 2025 144,449 109,788 76.0 3,113.18 As of March 31, 2025 141,502 104,048 73.5 2,951.16 Reference: Equity As of September 30, 2025 ¥109,788 million As of March 31, 2025 ¥104,048 million 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 Year ended March 31, 2025 – 35.00 – 38.00 73.00 Year ending March 31, 2026 – 41.00 Year ending March 31, 2026 (Forecast) – 41.00 82.00 Note: Revisions to the cash dividend forecast most recently announced: Yes
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2 3. Forecast of consolidated financial results for the year ending March 31, 2026 (from April 1, 2025 to March 31, 2026) Percentages indicate year-on-year changes Net sales Operating profit Ordinary profit Profit attributable to owners of parent Earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 75,500 8.6 17,500 7.8 17,600 6.3 12,200 5.0 346.04 Note: Revisions to the financial results forecasts most recently announced: Yes Reference: Operating profit before depreciation and amortization (Consolidated operating profit + depreciation and amortization) Full year ¥28,400 million [15.7%] 4. Notes (1) Significant changes in the scope of consolidation during the period: No (2) Application of special accounting methods for preparing semi-annual consolidated financial statements: Yes (3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: No Changes in accounting policies due to other reasons: No Changes in accounting estimates: No Restatement of prior period financial statements: No (4) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of September 30, 2025 35,511,000 shares As of March 31, 2025 35,511,000 shares Number of treasury shares at the end of the period As of September 30, 2025 245,494 shares As of March 31, 2025 254,089 shares Average number of shares during the period (cumulative from the beginning of the fiscal year) Six months ended September 30, 2025 35,259,118 shares Six months ended September 30, 2024 35,251,492 shares * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit corporation. * Explanation of proper use of financial results forecast, and other special matters (Caution concerning forward-looking statements) The forward-looking statements, including the financial results forecast shown in this document, are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. As such, they do not constitute guarantees by the Company of future performance. Actual performance and other results may also differ materially due to various factors.
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3 Semi-annual consolidated financial statements Semi-annual consolidated balance sheets (Thousands of yen) As of March 31, 2025 As of September 30, 2025 Assets Current assets Cash and deposits 31,295,730 33,464,723 Notes and accounts receivable - trade 16,046,056 17,296,107 Merchandise and finished goods 14,058,439 14,409,922 Work in process 675,979 656,335 Raw materials and supplies 3,419,342 3,409,490 Other 1,571,738 887,486 Allowance for doubtful accounts (14,851) (15,446) Total current assets 67,052,435 70,108,620 Non-current assets Property, plant and equipment Buildings and structures, net 19,435,011 18,913,246 Machinery, equipment and vehicles, net 18,491,734 17,719,557 Land 8,433,034 8,432,429 Construction in progress 19,567,556 21,045,936 Other, net 1,055,247 941,907 Total property, plant and equipment 66,982,585 67,053,077 Intangible assets 4,006,424 3,751,406 Investments and other assets Investment securities 714,487 805,008 Long-term prepaid expenses 540,921 458,820 Deferred tax assets 1,720,436 1,593,063 Retirement benefit asset 247,313 232,038 Other 237,467 447,837 Allowance for doubtful accounts (0) (0) Total investments and other assets 3,460,627 3,536,768 Total non-current assets 74,449,636 74,341,252 Total assets 141,502,071 144,449,873
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4 (Thousands of yen) As of March 31, 2025 As of September 30, 2025 Liabilities Current liabilities Notes and accounts payable - trade 3,073,443 2,968,632 Current portion of long-term borrowings 3,100,000 4,000,000 Accounts payable - other 2,625,862 2,606,599 Accounts payable - facilities 6,207,343 3,726,584 Income taxes payable 1,847,953 2,714,416 Provision for bonuses 620,290 693,609 Provision for bonuses for directors (and other officers) 52,350 71,352 Provision for repairs 451,633 188,254 Other 510,725 750,503 Total current liabilities 18,489,603 17,719,952 Non-current liabilities Long-term borrowings 16,900,000 14,900,000 Deferred tax liabilities 303,532 304,438 Retirement benefit liability 1,463,632 1,442,640 Asset retirement obligations 17,924 17,924 Long-term accounts payable - facilities 137,864 130,478 Other 140,535 146,279 Total non-current liabilities 18,963,490 16,941,762 Total liabilities 37,453,093 34,661,714 Net assets Shareholders’ equity Share capital 4,334,047 4,334,047 Capital surplus 4,820,722 4,820,722 Retained earnings 91,405,565 96,927,074 Treasury shares (1,057,033) (1,022,269) Total shareholders’ equity 99,503,301 105,059,574 Accumulated other comprehensive income Valuation difference on available-for-sale securities 191,889 233,907 Deferred gains or losses on hedges 8,682 11,097 Foreign currency translation adjustment 4,345,103 4,483,579 Total accumulated other comprehensive income 4,545,676 4,728,584 Total net assets 104,048,977 109,788,158 Total liabilities and net assets 141,502,071 144,449,873
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5 Semi-annual consolidated statements of income (cumulative) and semi-annual consolidated statements of comprehensive income (cumulative) Semi-annual consolidated statements of income (cumulative) (Thousands of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Net sales 34,756,353 37,705,888 Cost of sales 21,840,812 22,874,014 Gross profit 12,915,541 14,831,873 Selling, general and administrative expenses 4,770,497 5,084,919 Operating profit 8,145,044 9,746,953 Non-operating income Interest income 157,061 207,466 Dividend income 6,161 7,987 Other 18,716 21,901 Total non-operating income 181,939 237,355 Non-operating expenses Interest expenses 65,940 64,782 Depreciation 558 – Loss on investments in investment partnerships 31,096 23,695 Foreign exchange losses 279,792 87,623 Other 644 572 Total non-operating expenses 378,033 176,673 Ordinary profit 7,948,950 9,807,635 Extraordinary income Gain on sale of non-current assets 60,928 2,813 Subsidy income 20,257 5,588 Total extraordinary income 81,185 8,402 Extraordinary losses Loss on sale of non-current assets – 198 Loss on retirement of non-current assets 21,405 20,925 Total extraordinary losses 21,405 21,124 Profit before income taxes 8,008,730 9,794,913 Income taxes - current 2,299,441 2,806,106 Income taxes - deferred 100,975 108,881 Total income taxes 2,400,417 2,914,988 Profit 5,608,313 6,879,924 Profit attributable to owners of parent 5,608,313 6,879,924
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6 Semi-annual consolidated statements of comprehensive income (cumulative) (Thousands of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Profit 5,608,313 6,879,924 Other comprehensive income Valuation difference on available-for-sale securities (79,064) 42,017 Deferred gains or losses on hedges (22,077) 2,414 Foreign currency translation adjustment (517,965) 138,475 Total other comprehensive income (619,107) 182,907 Comprehensive income 4,989,206 7,062,832 Comprehensive income attributable to Comprehensive income attributable to owners of parent 4,989,206 7,062,832 Comprehensive income attributable to non-controlling interests – –
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7 Semi-annual consolidated statements of cash flows (Thousands of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Cash flows from operating activities Profit before income taxes 8,008,730 9,794,913 Depreciation 3,702,681 4,581,823 Increase (decrease) in allowance for doubtful accounts 4,002 641 Increase (decrease) in provision for bonuses 65,492 71,714 Increase (decrease) in provision for bonuses for directors (and other officers) 22,310 19,002 Increase (decrease) in retirement benefit liability 24,759 (5,974) Increase (decrease) in provision for repairs (209,103) (263,379) Interest and dividend income (163,222) (215,453) Interest expenses 65,940 64,782 Foreign exchange losses (gains) 179,617 34,473 Loss (gain) on investments in investment partnerships 31,096 23,695 Loss (gain) on sale of non-current assets (60,928) (2,614) Loss on retirement of non-current assets 21,405 20,925 Subsidy income (20,257) (5,588) Decrease (increase) in trade receivables 224,616 (1,229,814) Decrease (increase) in inventories 937,540 (297,105) Increase (decrease) in trade payables 894,077 (117,376) Increase (decrease) in accounts payable - other 386,229 50,960 Other, net 1,677,435 908,819 Subtotal 15,792,426 13,434,445 Interest and dividends received 152,743 210,280 Interest paid (69,025) (65,034) Subsidies received 20,257 5,588 Income taxes paid (1,330,093) (1,986,431) Net cash provided by (used in) operating activities 14,566,307 11,598,848 Cash flows from investing activities Payments into time deposits (1,593,349) (1,330,016) Proceeds from withdrawal of time deposits 1,423,225 1,549,921 Purchase of property, plant and equipment (12,295,950) (6,468,677) Proceeds from sale of property, plant and equipment 1 3,309 Purchase of intangible assets (15,429) (305,369) Proceeds from sale of intangible assets 67,189 – Purchase of investment securities (2,839) (52,903) Proceeds from collection of long-term loans receivable 0 0 Proceeds from distributions from investment partnerships 27,990 – Other, net (388,877) (223,391) Net cash provided by (used in) investing activities (12,778,039) (6,827,127) Cash flows from financing activities Repayments of long-term borrowings – (1,100,000) Purchase of treasury shares (236) – Dividends paid (1,163,171) (1,339,552) Repayments of lease liabilities (5,432) (9,342) Net cash provided by (used in) financing activities (1,168,841) (2,448,894) Effect of exchange rate change on cash and cash equivalents (331,904) 34,573 Net increase (decrease) in cash and cash equivalents 287,522 2,357,400 Cash and cash equivalents at beginning of period 29,483,756 29,237,390 Cash and cash equivalents at end of period 29,771,278 31,594,790