Interim report
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. October 30, 2025 Consolidated Financial Results for the Six Months Ended September 30, 2025 (Under Japanese GAAP) Company name: DKS Co. Ltd. Listing: Tokyo Stock Exchange Security code: 4461 URL: https://www.dks-web.co.jp Representative: YAMAJI Naoki, President & CEO Inquiries: SHIMIZU Shinji, Representative Managing Director & CFO TEL: +81-75-277-2361 Scheduled date to file semi-annual securities report: November 10, 2025 Scheduled date to commence dividend payments: December 5, 2025 Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (Yen amounts are rounded down to millions, unless otherwise noted.) 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 income Ordinary income Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2025 37,611 6.2 3,868 56.3 3,603 39.7 2,182 73.7 September 30, 2024 35,431 21.3 2,474 － 2,579 － 1,256 – Note: Comprehensive income For the six months ended September 30, 2025 ¥3,561 million [45.0%] For the six months ended September 30, 2024 ¥2,456 million [178.1%] Basic earnings per share Diluted earnings per share Six months ended Yen Yen September 30, 2025 223.97 – September 30, 2024 131.25 – (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share As of Millions of yen Millions of yen % Yen September 30, 2025 102,398 51,974 45.4 4,390.42 March 31, 2025 97,113 44,504 39.9 4,044.52 Reference: Equity As of September 30, 2025 ¥46,457 million As of March 31, 2025 ¥38,729 million
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2. Cash dividends Annual dividends per share First quarter-end Second quarter- end Third quarter- end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 – 45.00 – 55.00 100.00 Fiscal year ending March 31, 2026 – 60.00 Fiscal year ending March 31, 2026 (Forecast) – 80.00 140.00 Note: Revisions to the forecast of cash dividends most recently announced: YES For details regarding the revision of cash dividends forecast, please refer to the “Notice Revision of Consolidated Financial Forecast and Dividend Forecast for the Fiscal Year Ending March 31, 2026” announced today (October 30, 2025). 3. Consolidated earnings forecasts for the fiscal year ending March 31, 2026 (from April 1, 2025, to March 31, 2026) (Percentages indicate year-on-year changes) Net sales Operating income Ordinary income Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 80,000 9.2 8,200 53.2 7,900 37.7 4,500 74.0 442.76 Note: Revisions to the earnings forecasts most recently announced: YES For details regarding the revision of the consolidated performance forecast, please refer to the “Notice Revision of Consolidated Financial Forecast and Dividend Forecast for the Fiscal Year Ending March 31, 2026” announced today (October 30, 2025). * Notes (1) Significant changes in the scope of consolidation during the period: None Newly included: – companies Excluded: – companies (2) Adoption of accounting treatment specific to the preparation of semi-annual 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 due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (ordinary shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of September 30, 2025 10,684,321 shares As of March 31, 2025 10,684,321 shares (ii) Number of treasury shares at the end of the period As of September 30, 2025 102,742 shares As of March 31, 2025 1,108,487 shares
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(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six months ended September 30, 2025 9,745,395 shares Six months ended September 30, 2024 9,572,885 shares * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other special matters (Notice concerning forward-looking statements) Forward-looking statements, including the consolidated forecasts stated in these materials, are based on information currently available to the Company and certain assumptions deemed reasonable. Consequently, no statements herein constitute assurances regarding actual results by the Company. Results may differ materially from the consolidated forecasts due to various factors.
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DKS Co. Ltd. (4461) - 1 - Attached Material Index 1. Overview of Operating Results ................................................................................................................. 2 (1) Overview of Semi-annual Operating Results ..................................................................................... 2 (2) Overview of Financial Position .......................................................................................................... 4 (3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information ............... 5 2. Semi-annual Consolidated Financial Statements and Notes ..................................................................... 6 (1) Semi-annual Consolidated Balance Sheet .......................................................................................... 6 (2) Semi-annual Consolidated Statement of Income and Semi-annual Consolidated Statement of Comprehensive Income ...................................................................................................................... 8 Semi-annual consolidated statement of income (cumulative) ............................................................ 8 Semi-annual consolidated statement of comprehensive income (cumulative) ................................... 9 (3) Semi-annual Consolidated Statement of Cash Flows ....................................................................... 10 (4) Notes to Semi-annual Consolidated Financial Statements ............................................................... 11 (Notes on premise of going concern) ............................................................................................... 11 (Notes when there are significant changes in amounts of equity) .................................................... 11 (Segment information, etc.) .............................................................................................................. 12
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DKS Co. Ltd. (4461) - 2 - 1. Overview of Operating Results (1) Overview of Semi-annual Operating Results During the current semi-annual consolidated fiscal year under review, the Japanese economy continued to show signs of a moderate recovery. However, the outlook remained uncertain due to uncertain factors such as the depreciation of the yen, rising raw material prices, and a slowdown in overseas demand. Globally, economic growth decelerated as a result of U.S. monetary policy tightening, the slowdown of the Chinese economy, and stagnation in Europe. In the chemical industry, although demand recovered in areas such as electronic materials and automotive-related fields, intensified price competition— particularly in general-purpose chemical products—created a challenging overall business environment. In this environment, the Company experienced a further increase in inquiries for low-dielectric resins in high-end servers and for water-based composite adhesives applied to the negative electrodes of new battery materials, accompanied by steady improvement in market evaluation. As a result, growing demand in these key areas drove performance, leading to increased revenue and profit. Under the “Uni- Top” strategy outlined in the mid-term management plan “SMART 2030,” we are promoting the expansion of high value-added products and will continue to steadily implement each initiative to accelerate progress ahead of schedule. Concerning the results for the current semi-annual consolidated fiscal year under review, net sales amounted to ¥37,611 million (up 6.2% year on year), due to significant growth in low-dielectric resins for electronic materials in the “Electronics & IT” segment and water-based composite adhesives for negative electrodes for battery materials in the “Environment & Energy” segment. As for profit and loss, there was an operating totaled ¥3,868 million (up 56.3% year on year), was an ordinary income of ¥3,603 million (up 39.7% year on year), and net income attributable to owners of the parent was ¥2,182 million (up 73.7% year on year), due to increased sales primarily in the “Electronics & IT” and “Environment & Energy” segments. Results by segment are as follows. Effective from the first quarter of the current fiscal year, the Group’s reporting segments have been reorganized from six product-based categories—“Surfactants,” “Amenity Materials,” “Polyurethane Materials,” “Functional Materials,” “Electronic Device Materials,” and “Life Sciences”—into four business field-based segments: “Electronics & IT,” “Environment & Energy,” “Life & Wellness,” and “Core Materials.” Additionally, year-on-year comparisons are based on figures for the same period of the previous fiscal year, recalculated using the new classification method. Electronics & IT Net sales in the Electronics & IT segment generally increased significantly. In Japan, sales fell significantly for special surfactants used in monitors and sales were sluggish for flame retardants used in display material frames, while sales of low-dielectric resins for electronic materials grew significantly. Overseas, sales of flame retardants used in display material frames fell significantly, and sales of low-dielectric resins for electronic materials were sluggish. As a result, net sales in this segment were ¥13,976 million (up 10.7% year on year). Operating income was ¥2,794 million (up 13.8% year on year), due to the increase in net sales.
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DKS Co. Ltd. (4461) - 3 - Environment & Energy Net sales in the Environment & Energy segment generally increased significantly. In Japan, sales of environmentally friendly synthetic lubricants related to CFC regulations were sluggish. Sales of potting agents for PCBs and adhesives used in electronic components for mobility grew significantly. Sales of high-performance conductive pastes for solar cell applications were generally firm. Overseas, sales of water-based composite adhesives for negative electrodes for battery materials grew significantly due to their launch at the end of the previous fiscal year. Sales of high-performance conductive pastes for solar cell applications fell significantly. As a result, net sales in this segment were ¥9,331 million (up 12.6% year on year). Operating income was ¥654 million (operating loss of ¥201 million in the same period of the previous fiscal year), due to increased sales of high value-added products. Life & Wellness Net sales in the Life & Wellness segment were generally firm. In Japan, sales of soap and detergent applications were firm. Sales of sucrose fatty acid esters in food applications were firm. Overseas, sales of sucrose fatty acid esters in personal care (cosmetics) applications were firm, while in food applications were sluggish. As a result, net sales in this segment were ¥6,896 million (up 2.3% year on year). Operating income was ¥286 million (up 43.9% year on year), due to improved profitability, particularly in domestic sucrose fatty acid esters. Core Materials Net sales in the Core Materials segment were generally sluggish. Sales of anti-collapse agents for tunnels used in civil engineering and construction applications were sluggish. Sales of flame retardants used in rubber and plastic applications were sluggish. As a result, net sales in this segment were ¥7,406 million (down 4.8% year on year). Operating income was ¥132 million (operating income of ¥21 million in the same period of the previous fiscal year), due to increased sales of high value-added products.
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DKS Co. Ltd. (4461) - 4 - (2) Overview of Financial Position (Assets) Current assets as of September 30, 2025 were ¥60,652 million, up ¥3,405 million from the end of the previous fiscal year. This was primarily due to a decrease of ¥691 million in notes and accounts receivable – trade, despite an increase of ¥3,016 million in cash and deposits and an increase of ¥890 million in inventories including merchandise and finished goods. Non-current assets totaled ¥41,745 million, up ¥1,879 million from the end of the previous fiscal year. This was primarily due to an increase of ¥1,153 million in investment securities and an increase of ¥562 million in construction in progress. As a result, total assets amounted to ¥102,398 million, up ¥5,285 million from the end of the previous fiscal year. (Liabilities) Current liabilities as of September 30, 2025 were ¥28,049 million, up ¥1,517 million from the end of the previous fiscal year. This was primarily due to an increase of ¥908 million in lease liabilities (current portion) and an increase of ¥843 million in short-term borrowings, despite a decrease of ¥481 million in notes and accounts payable – trade and a decrease of ¥432 million in provision for bonuses. Non-current liabilities totaled ¥22,374 million, down ¥3,701 million from the end of the previous fiscal year. This was primarily due to a decrease of ¥2,942 million in long-term borrowings and a decrease of ¥1,101 million in lease liabilities. As a result, total liabilities amounted to ¥50,424 million, down ¥2,184 million from the end of the previous fiscal year. (Net assets) Total net assets as of September 30, 2025 were ¥51,974 million, up ¥7,469 million from the end of the previous fiscal year. This was primarily due to an increase of ¥2,951 million in capital surplus resulting from the disposal of treasury shares through a public offering, a decrease of ¥2,221 million in treasury shares, net income attributable to owners of parent of ¥2,182 million, dividends of surplus of ¥526 million, resulting in an increase of ¥1,656 million in retained earnings and, valuation difference on available-for- sale securities increased by ¥957 million. As a result, the equity ratio came to 45.4% (39.9% as of the end of the previous fiscal year). (Consolidated cash flows) Cash and cash equivalents (“cash”) in the six months ended September 30, 2025 were ¥19,586 million, an decrease of ¥3,030 million compared to the end of the previous fiscal year. The respective cash flow positions and the factors thereof in the six months ended September 30, 2025 are as follows. Cash flows from operating activities Net cash provided by operating activities was ¥2,928 million (¥3,501 million in the same period of the previous fiscal year). This was due to a decrease in funds resulting from an increase in inventories of ¥879 million (a decrease of ¥50 million in the same period of the previous fiscal year), and an increase in funds resulting primarily from profit before income taxes of ¥3,530 million (¥2,551 million in the same period of the previous fiscal year), and depreciation and amortization of ¥1,571 million (¥1,604 million in the previous fiscal year).
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DKS Co. Ltd. (4461) - 5 - Cash flows from investing activities Net cash used in investing activities was ¥1,267 million (¥997 million was used in the same period of the previous fiscal year). This was due to a decrease in funds resulting primarily from purchase of property, plant and equipment of ¥1,369 million (¥1,077 million in the previous fiscal year). Cash flows from financing activities Net cash provided by financing activities was ¥1,475 million (¥4,372 million was used in the same period of the previous fiscal year). This was due to a decrease in funds resulting from repayments of long-term borrowings of ¥3,245 million (¥3,443 million in the same period of the previous fiscal year), and dividends paid of ¥526 million (¥430 million in the same period of the previous fiscal year), and an increase in funds resulting from proceeds from disposal of treasury stock of ¥5,151 million (none in the previous fiscal year). (3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information The consolidated performance forecast for the fiscal year ending March 2026 has been revised in light of recent performance trends. For details, please refer to the “Notice Revision of Consolidated Financial Forecast and Dividend Forecast for the Fiscal Year Ending March 31, 2026” disclosed today (October 30, 2025).
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DKS Co. Ltd. (4461) - 6 - 2. Semi-annual Consolidated Financial Statements and Notes (1) Semi-annual Consolidated Balance Sheet (Millions of yen) As of March 31, 2025 As of September 30, 2025 Assets Current assets Cash and deposits 16,751 19,768 Notes and accounts receivable - trade 19,842 19,152 Electronically recorded monetary claims - operating 2,316 2,191 Merchandise and finished goods 11,987 11,739 Work in process 18 18 Raw materials and supplies 3,894 5,033 Prepaid expenses 420 621 Other 2,029 2,137 Allowance for doubtful accounts (13) (10) Total current assets 57,247 60,652 Non-current assets Property, plant and equipment Buildings and structures, net 12,449 12,297 Machinery, equipment and vehicles, net 5,524 5,772 Tools, furniture and fixtures, net 1,199 1,354 Land 10,027 10,144 Leased assets, net 1,756 1,598 Construction in progress 440 1,003 Total property, plant and equipment 31,398 32,171 Intangible assets 250 253 Investments and other assets Investment securities 5,694 6,847 Long-term loans receivable 9 8 Long-term prepaid expenses 387 297 Deferred tax assets 124 164 Retirement benefit asset 1,631 1,634 Other 369 368 Allowance for doubtful accounts (1) (1) Total investments and other assets 8,215 9,319 Total non-current assets 39,865 41,745 Total assets 97,113 102,398
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DKS Co. Ltd. (4461) - 7 - (Millions of yen) As of March 31, 2025 As of September 30, 2025 Liabilities Current liabilities Notes and accounts payable - trade 13,484 13,002 Electronically recorded obligations - operating 500 566 Short-term borrowings 6,300 7,143 Lease liabilities 523 1,432 Accrued expenses 320 326 Income taxes payable 927 1,179 Accrued business office taxes 42 21 Provision for bonuses 1,461 1,028 Other 2,971 3,348 Total current liabilities 26,532 28,049 Non-current liabilities Corporate bonds 6,000 6,000 Long-term borrowings 17,114 14,172 Lease liabilities 1,412 310 Deferred tax liabilities 1,118 1,478 Retirement benefit liability 77 67 Asset retirement obligations 74 74 Other 278 270 Total non-current liabilities 26,075 22,374 Total liabilities 52,608 50,424 Net assets Shareholders’ equity Capital stock 8,895 8,895 Capital surplus 7,275 10,226 Retained earnings 21,575 23,231 Treasury shares (2,449) (227) Total shareholders’ equity 35,296 42,126 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,606 2,563 Foreign currency translation adjustment 1,412 1,377 Remeasurements of defined benefit plans 413 390 Total accumulated other comprehensive income 3,432 4,331 Non-controlling interests 5,775 5,516 Total net assets 44,504 51,974 Total liabilities and net assets 97,113 102,398
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DKS Co. Ltd. (4461) - 8 - (2) Semi-annual Consolidated Statement of Income and Semi-annual Consolidated Statement of Comprehensive Income Semi-annual consolidated statement of income (cumulative) (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Net sales 35,431 37,611 Cost of sales 26,706 26,956 Gross profit 8,724 10,654 Selling, general and administrative expenses 6,250 6,786 Operating income 2,474 3,868 Non-operating income Interest income 14 26 Dividend income 75 90 Share of profit of entities accounted for using equity method 22 21 Foreign exchange gains 107 － Other 80 88 Total non-operating income 301 226 Non-operating expenses Interest expenses 121 125 Corporate bond interest 18 18 Foreign exchange losses － 285 Other 56 62 Total non-operating expenses 196 491 Ordinary income 2,579 3,603 Extraordinary losses Loss on disposal of non-current assets 27 72 Total extraordinary losses 27 72 Profit before income taxes 2,551 3,530 Income taxes - current 444 1,086 Income taxes - deferred 234 (109) Total income taxes 679 977 Profit 1,872 2,553 Profit attributable to non-controlling interests 616 370 Profit attributable to owners of parent 1,256 2,182
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DKS Co. Ltd. (4461) - 9 - Semi-annual consolidated statement of comprehensive income (cumulative) (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Profit 1,872 2,553 Other comprehensive income Valuation difference on available-for-sale securities (212) 957 Foreign currency translation adjustment 797 134 Remeasurements of defined benefit plans net of tax (20) (22) Share of other comprehensive income of entities accounted for using equity method 19 (62) Total other comprehensive income 583 1,007 Comprehensive income 2,456 3,561 Comprehensive income attributable to Comprehensive income attributable to owners of parent 1,529 3,081 Comprehensive income attributable to non- controlling interests 927 479
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DKS Co. Ltd. (4461) - 10 - (3) Semi-annual Consolidated Statement of Cash Flows (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Cash flows from operating activities Profit (loss) before income taxes 2,551 3,530 Depreciation 1,604 1,571 Increase (decrease) in allowance for doubtful accounts (0) (1) Increase (decrease) in retirement benefit liability (56) (36) Interest and dividend income (90) (116) Interest expenses 121 125 Corporate bond interest 18 18 Share of loss (profit) of entities accounted for using equity method (22) (21) Loss on disposal of non-current assets 27 72 Decrease (increase) in trade receivables 141 829 Decrease (increase) in inventories 50 (879) Increase (decrease) in trade payables (333) (306) Other (252) (1,034) Subtotal 3,758 3,751 Interest and dividends received 97 118 Interest paid (140) (144) Income taxes paid (213) (797) Net cash provided by (used in) operating activities 3,501 2,928 Cash flows from investing activities Payments into time deposits (85) (81) Proceeds from withdrawal of time deposits 85 81 Purchase of property, plant and equipment (1,077) (1,369) Purchase of investment securities (1) (1) Proceeds from sale of investment securities 1 － Other 80 103 Net cash provided by (used in) investing activities (997) (1,267) Cash flows from financing activities Net increase (decrease) in short-term borrowings － 1,081 Repayments of long-term borrowings (3,443) (3,245) Repayments of lease liabilities (250) (246) Purchase of treasury shares (0) (0) Dividends paid (430) (526) Proceeds from disposal of treasury shares － 5,151 Dividends paid to non-controlling interests (248) (738) Net cash provided by (used in) financing activities (4,372) 1,475 Effect of exchange rate change on cash and cash equivalents 94 (106) Net increase (decrease) in cash and cash equivalents (1,774) 3,030 Cash and cash equivalents at beginning of period 15,947 16,556 Cash and cash equivalents at end of period 14,172 19,586
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DKS Co. Ltd. (4461) - 11 - (4) Notes to Semi-annual Consolidated Financial Statements (Notes on premise of going concern) Not applicable. (Notes when there are significant changes in amounts of equity) Based on the resolution of the Board of Directors on August 25, 2025, the Company disposed of 1,000,000 shares of treasury stock through a public offering, with the payment date set for September 9, 2025. As a result, during the six months ending on September 30, 2025, capital surplus increased by ¥2,941 million and treasury stock decreased by ¥2,209 million. Following this disposal of treasury stock, as of September 30, 2025, capital surplus stood at ¥10,226 million, and treasury stock amounted to negative ¥227 million.
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DKS Co. Ltd. (4461) - 12 - (Segment information, etc.) Segment information I First six months ended September 30, 2024 (from April 1, 2024 to September 30, 2024) Disclosure of sales and profit (loss) for each reportable segment and information on breakdown of revenues (Millions of yen) Electronics & IT Environment & Energy Life & Wellness Core Materials Total Net sales Revenue from contracts with customers 12,626 8,284 6,741 7,779 35,431 Revenues from external customers 12,626 8,284 6,741 7,779 35,431 Transactions with other segments – – – – – Total 12,626 8,284 6,741 7,779 35,431 Segment profit (loss) operating income (loss) 2,455 (201) 199 21 2,474 Note: Total amount of profit or loss in reportable segments and operating income in the semi-annual consolidated statement of income coincide. II First six months ended September 30, 2024 (from April 1, 2025 to September 30, 2025) 1. Disclosure of sales and profit (loss) for each reportable segment and information on breakdown of revenues (Millions of yen) Electronics & IT Environment & Energy Life & Wellness Core Materials Total Net sales Revenue from contracts with customers 13,976 9,331 6,896 7,406 37,611 Revenues from external customers 13,976 9,331 6,896 7,406 37,611 Transactions with other segments – – – – – Total 13,976 9,331 6,896 7,406 37,611 Segment profit operating income 2,794 654 286 132 3,868 Note: Total amount of profit in reportable segments and operating income in the semi-annual consolidated statement of income coincide. 2. Matters Related to Changes in Reportable Segments Effective from the first quarter of the current consolidated accounting period, our group has revised its reportable segment classifications. Previously, the segments were categorized as “Surfactants,” “Amenity Materials,” “Polyurethane Materials,” “Functional Materials,” “Electronic Device Materials,” and “Life Sciences”. To promote corporate growth by facilitating the formulation of strategies tailored to the characteristics of each field, helping stakeholders better understand the nature of each business, and expediting efficient management and analysis, we have reclassified our segments into four categories: Electronics & IT, Environment & Energy, Life & Wellness, and Core Materials. Please note that segment information for the first quarter of the previous fiscal year has been restated using the new segment names and classification methods.