Interim report
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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 Three Months Ended June 30 , 2026 ( Based on Japanese GAAP ) Company name : FUSO CHEMICAL CO . , LTD . Stock exchange listing : Tokyo Stock code : 4368 Representative : Inquiries : URL https://fusokk.co.jp/eng/ Representative Director & President Board Director , Division Manager of Administration Division Shinichi Sugita Hiroyuki Ito TEL 03-3639-6311 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results meeting : No No August 7 , 2026 ( Amounts less than one million yen are rounded down ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) Percentages indicate year - on - year changes Net sales Millions of yen Three months ended June 30 , 2026 Three months ended June 30 , 2025 22,819 % 22.3 18,658 7.0 Operating profit Millions of yen % 6,172 31.5 4,694 20.0 Ordinary profit Millions of yen 6,363 4,532 % 40.4 Profit attributable to owners of parent Millions of yen % 6,688 115.4 5.6 3,105 7.6 Note : Comprehensive income Three months ended June 30 , 2026 Three months ended June 30 , 2025 ¥ 7,224 million [ 164.5 % ] ¥ 2,731 million [ ( 27.7 ) % ] Earnings per share Diluted earnings per share Yen Yen Three months ended June 30 , 2026 Three months ended June 30 , 2025 63.22 29.35 Reference : Operating profit before depreciation and amortization ( Consolidated operating profit + depreciation and amortization ) Three months ended June 30 , 2026 Three months ended June 30 , 2025 ¥ 9,197 million ¥ 6,897 million Note : The Company conducted a 3 - for - 1 share split of its common shares on April 1 , 2026. Earnings per share is calculated on the assumption that the share split was implemented at the beginning of the previous fiscal year . ( 2 ) Consolidated financial position As of June 30 , 2026 As of March 31 , 2026 Reference : Equity As of June 30 , 2026 Total assets Millions of yen Net assets Millions of yen Equity ratio Net assets per share % Yen 166,829 152,256 123,004 117,216 73.7 1,162.65 77.0 1,107.94 ¥ 123,004 million ¥ 117,216 million As of March 31 , 2026 Note : The Company conducted a 3 - for - 1 share split of its common shares on April 1 , 2026. Net assets per share is calculated on the assumption that the share split was implemented at the beginning of the previous fiscal year . 2. Cash dividends Year ended March 31 , 2026 Year ending March 31 , 2027 1st quarter - end 2nd quarter - end Annual dividends per share 3rd quarter - end Fiscal year - end Total Yen Yen Yen 41.00 Yen 41.00 Yen 82.00 Year ending March 31 , 2027 ( Forecast ) 14.00 Notes : 1. Revisions to the cash dividend forecast most recently announced : No 14.00 28.00 2. The Company conducted a 3 - for - 1 share split of its common shares on April 1 , 2026. The amounts shown for the year ended March 31 , 2026 are the actual amounts of dividends paid before the share split . 1
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2 3. Forecast of consolidated financial results for the year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) 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 Six months ending September 30, 2026 43,100 14.3 11,600 19.0 11,700 19.3 10,450 51.9 98.77 Full year 85,800 11.5 24,300 28.9 24,500 25.2 19,200 34.2 181.48 Note: Revisions to the financial results forecasts most recently announced: No Reference: Operating profit before depreciation and amortization (Consolidated operating profit + depreciation and amortization) First half (cumulative) ¥17,800 million [24.2%] Full year ¥37,000 million [24.2%] 4. Notes (1) Significant changes in the scope of consolidation during the three months ended June 30, 2026: No (2) Application of special accounting methods for preparing quarterly consolidated financial statements: Yes Note: Simple accounting procedures and accounting procedures specific for the preparation of quarterly consolidated financial statements. (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 June 30, 2026 106,533,000 shares As of March 31, 2026 106,533,000 shares Number of treasury shares at the end of the period As of June 30, 2026 736,626 shares As of March 31, 2026 736,626 shares Average number of shares during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 105,796,374 shares Three months ended June 30, 2025 105,786,844 shares Note: The Company conducted a 3-for-1 share split of its common shares on April 1, 2026. Total number of issued shares at the end of the period, number of treasury shares at the end of the period, and average number of shares during the period (cumulative from the beginning of the fiscal year) are calculated on the assumption that the share split was implemented at the beginning of the previous fiscal year. * Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: Yes (voluntary) * 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 Quarterly consolidated financial statements Consolidated balance sheets (Thousands of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 41,006,795 38,292,068 Notes and accounts receivable - trade 16,626,358 19,621,452 Merchandise and finished goods 14,205,343 13,100,192 Work in process 703,343 1,017,971 Raw materials and supplies 3,500,382 4,157,940 Other 2,450,191 6,006,849 Allowance for doubtful accounts (16,363) (17,080) Total current assets 78,476,053 82,179,393 Non-current assets Property, plant and equipment Buildings and structures, net 25,492,180 25,019,740 Machinery, equipment and vehicles, net 25,403,776 23,899,142 Land 8,442,867 8,445,249 Construction in progress 4,188,076 17,328,242 Other, net 1,013,429 974,695 Total property, plant and equipment 64,540,330 75,667,070 Intangible assets 5,490,989 5,147,190 Investments and other assets Investment securities 679,817 894,644 Long-term prepaid expenses 434,498 391,331 Deferred tax assets 1,897,402 1,820,485 Retirement benefit asset 299,860 291,877 Other 437,325 437,642 Total investments and other assets 3,748,904 3,835,982 Total non-current assets 73,780,224 84,650,243 Total assets 152,256,278 166,829,636
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4 (Thousands of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Accounts payable - trade 2,836,663 3,304,236 Current portion of long-term borrowings 4,000,000 4,000,000 Accounts payable - other 2,684,275 3,109,908 Accounts payable - facilities 5,429,273 14,045,080 Income taxes payable 3,056,555 3,315,862 Provision for bonuses 691,096 428,881 Provision for bonuses for directors (and other officers) 95,612 40,248 Provision for repairs 506,796 448,224 Other 543,856 939,347 Total current liabilities 19,844,130 29,631,790 Non-current liabilities Long-term borrowings 12,900,000 11,900,000 Deferred tax liabilities 394,174 396,589 Retirement benefit liability 1,472,003 1,478,170 Asset retirement obligations 155,418 153,289 Long-term accounts payable - facilities 123,092 119,399 Other 150,536 145,777 Total non-current liabilities 15,195,224 14,193,227 Total liabilities 35,039,354 43,825,017 Net assets Shareholders’ equity Share capital 4,334,047 4,334,047 Capital surplus 4,820,722 4,829,317 Retained earnings 102,917,629 108,160,641 Treasury shares (1,021,523) (1,021,523) Total shareholders’ equity 111,050,875 116,302,483 Accumulated other comprehensive income Valuation difference on available-for-sale securities 157,089 304,184 Deferred gains or losses on hedges 17,415 13,244 Foreign currency translation adjustment 5,991,543 6,384,705 Total accumulated other comprehensive income 6,166,047 6,702,135 Total net assets 117,216,923 123,004,618 Total liabilities and net assets 152,256,278 166,829,636
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5 Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative) Consolidated statements of income (cumulative) (Thousands of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 18,658,089 22,819,442 Cost of sales 11,444,179 13,714,233 Gross profit 7,213,909 9,105,209 Selling, general and administrative expenses 2,519,839 2,932,925 Operating profit 4,694,069 6,172,283 Non-operating income Interest income 103,869 132,236 Dividend income 7,987 4,423 Foreign exchange gains – 75,668 Other 10,983 8,399 Total non-operating income 122,840 220,727 Non-operating expenses Interest expenses 32,789 26,715 Loss on investments in investment partnerships 6,718 2,606 Foreign exchange losses 244,701 – Other 19 230 Total non-operating expenses 284,229 29,552 Ordinary profit 4,532,680 6,363,458 Extraordinary income Gain on sale of non-current assets 578 31 Subsidy income 5,588 3,703,829 Total extraordinary income 6,166 3,703,860 Extraordinary losses Loss on sale of non-current assets 195 – Loss on retirement of non-current assets 3,871 95,385 Total extraordinary losses 4,066 95,385 Profit before income taxes 4,534,780 9,971,934 Income taxes - current 1,410,836 3,276,147 Income taxes - deferred 18,766 6,891 Total income taxes 1,429,602 3,283,038 Profit 3,105,177 6,688,896 Profit attributable to owners of parent 3,105,177 6,688,896
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6 Consolidated statements of comprehensive income (cumulative) (Thousands of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 3,105,177 6,688,896 Other comprehensive income Valuation difference on available-for-sale securities 14,149 147,095 Deferred gains or losses on hedges (7,113) (4,170) Foreign currency translation adjustment (380,823) 393,162 Total other comprehensive income (373,787) 536,087 Comprehensive income 2,731,390 7,224,984 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,731,390 7,224,984 Comprehensive income attributable to non-controlling interests – –
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7 Consolidated statements of cash flows (Thousands of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 4,534,780 9,971,934 Depreciation 2,203,421 3,025,420 Increase (decrease) in allowance for doubtful accounts 111 478 Increase (decrease) in provision for bonuses (239,341) (264,613) Increase (decrease) in provision for bonuses for directors (and other officers) (17,707) (55,364) Increase (decrease) in retirement benefit liability 14,843 14,165 Increase (decrease) in provision for repairs (95,255) (58,571) Interest and dividend income (111,856) (136,659) Interest expenses 32,789 26,715 Foreign exchange losses (gains) 140,244 (15,358) Loss (gain) on sale of non-current assets (382) (31) Loss on retirement of non-current assets 3,871 95,385 Loss (gain) on investments in investment partnerships 6,718 2,606 Subsidy income (5,588) (3,703,829) Decrease (increase) in trade receivables (977,932) (2,919,698) Decrease (increase) in inventories 113,740 245,796 Increase (decrease) in trade payables (90,609) 444,648 Increase (decrease) in accounts payable - other 118,735 472,816 Other, net 261,948 439,105 Subtotal 5,892,534 7,584,946 Interest and dividends received 116,354 131,526 Interest paid (32,307) (26,583) Subsidies received 5,588 8,896 Income taxes paid (1,721,252) (2,981,995) Net cash provided by (used in) operating activities 4,260,917 4,716,790 Cash flows from investing activities Payments into time deposits (1,308,297) (3,905,611) Proceeds from withdrawal of time deposits 1,129,282 3,368,483 Purchase of property, plant and equipment (5,816,820) (5,006,402) Proceeds from sale of property, plant and equipment 1,044 31 Purchase of intangible assets (126,684) (57,532) Purchase of investment securities (2,604) (2,789) Proceeds from collection of long-term loans receivable 0 0 Other, net (23,620) (109,161) Net cash provided by (used in) investing activities (6,147,700) (5,712,982) Cash flows from financing activities Repayments of long-term borrowings (100,000) (1,000,000) Dividends paid (1,327,951) (1,435,201) Repayments of lease liabilities (4,779) (5,398) Net cash provided by (used in) financing activities (1,432,730) (2,440,599) Effect of exchange rate change on cash and cash equivalents (256,111) 124,002 Net increase (decrease) in cash and cash equivalents (3,575,625) (3,312,789) Cash and cash equivalents at beginning of period 29,237,390 37,896,430 Cash and cash equivalents at end of period 25,661,764 34,583,641