Interim report
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Note : This document has been translated from a part of 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 . Company name : Listing : Securities code : URL : Representative : Inquiries : Telephone : Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) Scheduled date to commence dividend payments : Kansai Paint Co. , Ltd. Tokyo Stock Exchange 4613 https://www.kansai.co.jp/ August 7 , 2026 FASF MORI Kunishi , Representative Director of the Board , President TOMIOKA Takashi , Director of the Board , Managing Executive Officer , Chief Financial Officer + 81-6-7178-5531 Preparation of supplementary material on financial results : None Holding of financial results briefing : None ( Yen amounts are rounded down to millions . ) 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 . ) Three months ended June 30 , 2026 Net sales Millions of yen 157,853 Operating profit June 30 , 2025 Note : Comprehensive income For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : 144,680 9.1 ( 0.5 ) % Millions of yen 10,492 12,241 % ( 14.3 ) ( 19.0 ) Ordinary profit Millions of yen 13,646 14,378 Profit attributable to owners of parent % Millions of yen % ( 5.1 ) 6,482 ( 23.6 ) ( 27.8 ) 8,481 ( 28.6 ) ¥ 9,994 million [ - % ] ¥ ( 6,844 ) million [ - % ] Three months ended June 30 , 2026 Basic earnings per share Yen 36.82 48.13 Diluted earnings per share Yen 30.29 39.80 June 30 , 2025 ( 2 ) Consolidated financial position As of June 30 , 2026 March 31 , 2026 Reference : Equity 2. Cash dividends Total assets Net assets Equity - to - asset ratio Millions of yen Millions of yen 845,372 801,693 380,495 381,203 % 35.3 37.4 As of June 30 , 2026 : ¥ As of March 31 , 2026 : ¥ 298,280 million 299,834 million Fiscal year ended March 31 , 2026 Fiscal year ending March 31 , 2027 First quarter - end Second quarter - end Third quarter - end Yen Annual dividends per share Fiscal year - end Total Yen 55.00 Yen Yen Yen 55.00 110.00 Fiscal year ending March 31 , 2027 58.00 ( Forecast ) Note : Revisions to the forecast of cash dividends most recently announced : Yes 58.00 116.00 Regarding the revision of the dividend forecast , please refer to the announcement titled “ Notice of Revision of Financial Forecast and Dividend Forecast " , which was released on August 7 , 2026 .
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3. Consolidated financial result forecasts for the fiscal 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 Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 630,000 6.8 55,000 10.6 57,000 4.2 28,000 (11.5) 159.05 Note: Revisions to the financial result forecast most recently announced: Yes Regarding the revision of the consolidated financial result forecast, please refer to the announcement titled “Notice of Revision of Financial Forecast and Dividend Forecast", which was released on August 7, 2026. * Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes (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 (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 177,976,280 shares As of March 31, 2026 177,976,280 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 1,930,598 shares As of March 31, 2026 1,929,971 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 176,045,905 shares Three months ended June 30, 2025 176,223,018 shares * Quarterly financial results are exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other special matters The forward-looking statements such as operational forecasts contained in this document are based on information currently available to the Company and certain assumptions which are regarded as legitimate. However, it does not mean that we guarantee its achievement. Actual results may differ from such forward-looking statements for a variety of reasons.
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Overview of financial results In the fiscal year under review, despite a gradual recovery trend, the outlook for the global economy remained uncertain due to heightened geopolitical risks, fluctuations in financial and capital markets, and escalating tensions in the Middle East. Under these circumstances, the overall Japanese economy showed signs of a pick-up in personal consumption and capital investment and continued to recover gradually due to improvements in employment and income conditions and the effects of various policies. In India, steady growth led by domestic demand continued, centered on personal consumption and infrastructure investment. In Europe, although the economy showed signs of recovery, domestic demand remained weak against a backdrop of increasing inflationary pressures and growing uncertainty, resulting in an uncertain outlook. In China, the economy remained sluggish due to the stagnant real estate market. The Group's net sales for the first quarter of the current fiscal year were 157,853 million yen (up 9.1% year on year). Operating profit was 10,492 million yen (down 14.3% year on year) mainly due to delays in passing on rising raw material costs to selling prices and increased fixed costs. Ordinary profit was 13,646 million yen (down 5.1% year on year) mainly due to an increase in share of profit of entities accounted for using equity method. Profit attributable to owners of parent was 6,482 million yen (down 23.6% year on year) mainly due to a decrease in gain on sale of non-current assets. Segment overviews are as follows. <Japan> In the automotive coatings sector, net sales increased from the previous year due to an increase in the number of automobiles manufactured. In the industrial coatings and marine coatings sector, demand remained firm and net sales increased from the previous year. Although net sales fell below the previous year due to sluggish market conditions in the decorative coatings sector, overall net sales in Japan increased from the previous year. Segment profit decreased from the previous year, mainly due to delays in passing on rising raw material costs to selling prices and increased fixed costs. As a result of those factors, the segment’s net sales and segment profit were 41,782 million yen (up 6.4% year on year) and 2,143 million yen (down 57.9% year on year), respectively. <India> In the automotive coatings and industrial coatings sector, net sales increased from the previous year, supported by strong domestic demand. In the decorative coatings sector, although the overall market remained sluggish, net sales slightly increased from the previous year mainly due to improvements in product mix. Segment profit increased from the previous year despite the impact of rising raw material costs. As a result of those factors, the segment’s net sales and segment profit were 40,289 million yen (up 9.0% year on year) and 4,623 million yen (up 4.6% year on year), respectively. <Europe> In Turkey, net sales increased from the previous year due to an increase in the number of automobiles manufactured by major customers compared to the previous year. In other European countries, net sales increased from the previous year, partly due to the impact of currency translation resulting from the weaker yen. Segment profit increased from the previous year as increases in fixed costs were absorbed by price pass-through, and share of profit of entities accounted for using equity method improved. As a result of those factors, the segment’s net sales and segment profit were 42,647 million yen (up 12.6% year on year) and 1,435 million yen (26 million yen in the same period of the previous fiscal year), respectively.
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<Asia> In Thailand, Malaysia, and Indonesia, net sales increased from the previous year due to an increase in the number of automobiles manufactured and improvements in selling prices. Meanwhile, in China, net sales fell below the previous year due to a decrease in the number of automobiles manufactured and the transfer of some businesses from consolidated subsidiaries to equity method affiliates as part of the consolidation of production sites. As a result, overall net sales in Asia increased from the previous year. Segment profit increased from the previous year due to improved profitability resulting from efforts to reduce total costs and an increase in share of profit of entities accounted for using equity method. As a result of those factors, the segment’s net sales and segment profit were 16,830 million yen (up 1.3% year on year) and 3,292 million yen (up 31.7% year on year), respectively. <Africa> In South Africa and neighboring countries, although the market environment remained sluggish, net sales increased from the previous year in the decorative coatings sector due to improvements in product mix and the effects of price pass-through. In East Africa, net sales were firm in the industrial coatings sector as well as in the mainstay decorative coatings sector. Segment profit increased from the previous year due to the expansion of the decorative coatings sector business. As a result of those factors, the segment’s net sales and segment profit were 13,757 million yen (up 19.7% year on year) and 1,330 million yen (up 23.0% year on year), respectively. <Others> In North America, although the number of automobiles manufactured by major customers remained at the same level as the previous year, net sales increased from the previous year due to improvements in selling prices. Segment profit increased from the previous year due to improved profitability, despite a decrease in share of profit of entities accounted for using equity method. As a result of those factors, the segment’s net sales and segment profit were 2,547 million yen (up 4.0% year on year) and 619 million yen (up 3.1% year on year).
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Quarterly Consolidated Financial Statements (1) Quarterly Consolidated Balance Sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 78,661 90,157 Notes and accounts receivable - trade, and contract assets 129,542 141,235 Securities 40,380 43,770 Merchandise and finished goods 55,996 59,766 Work in process 9,912 11,109 Raw materials and supplies 48,072 53,395 Other 19,314 24,993 Allowance for doubtful accounts (5,639) (5,822) Total current assets 376,241 418,605 Non-current assets Property, plant and equipment Buildings and structures, net 83,341 88,788 Other, net 120,492 118,994 Total property, plant and equipment 203,833 207,783 Intangible assets Goodwill 34,046 32,496 Other 48,107 46,770 Total intangible assets 82,154 79,267 Investments and other assets Investment securities 58,285 58,016 Other 86,665 87,242 Allowance for doubtful accounts (5,487) (5,542) Total investments and other assets 139,463 139,716 Total non-current assets 425,451 426,767 Total assets 801,693 845,372
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(Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 83,170 88,378 Short-term borrowings 19,604 22,980 Short-term bonds payable 29,981 59,948 Income taxes payable 7,765 6,028 Provision for bonuses 6,484 4,042 Other 48,741 54,251 Total current liabilities 195,748 235,631 Non-current liabilities Bonds payable 60,000 60,000 Convertible-bond-type bonds with share acquisition rights 100,352 100,322 Retirement benefit liability 9,126 9,227 Other 55,262 59,696 Total non-current liabilities 224,741 229,245 Total liabilities 420,489 464,877 Net assets Shareholders' equity Share capital 25,658 25,658 Capital surplus 18,414 18,435 Retained earnings 205,135 202,296 Treasury shares (2,584) (2,586) Total shareholders' equity 246,625 243,804 Accumulated other comprehensive income Valuation difference on available-for-sale securities 16,105 14,890 Deferred gains or losses on hedges (1) (1) Foreign currency translation adjustment 26,828 29,572 Remeasurements of defined benefit plans 10,277 10,015 Total accumulated other comprehensive income 53,209 54,476 Share acquisition rights 223 205 Non-controlling interests 81,145 82,009 Total net assets 381,203 380,495 Total liabilities and net assets 801,693 845,372
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(2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income For the Three-Month Period (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales 144,680 157,853 Cost of sales 98,152 106,794 Gross profit 46,528 51,059 Selling, general and administrative expenses 34,286 40,567 Operating profit 12,241 10,492 Non-operating income Interest income 389 325 Dividend income 321 329 Share of profit of entities accounted for using equity method 1,485 2,952 Foreign exchange gains 576 722 Miscellaneous income 1,036 1,107 Total non-operating income 3,810 5,436 Non-operating expenses Interest expenses 514 638 Loss on abandonment of inventories 50 50 Loss on net monetary position 914 684 Miscellaneous expenses 194 908 Total non-operating expenses 1,673 2,282 Ordinary profit 14,378 13,646 Extraordinary income Gain on sale of non-current assets 382 48 Gain on sale of investment securities 205 81 Total extraordinary income 587 129 Extraordinary losses Loss on sale and retirement of non-current assets 42 61 Impairment losses - 4 Extra payments for early retirements 139 8 Total extraordinary losses 182 74 Profit before income taxes 14,784 13,701 Income taxes 5,157 5,509 Profit 9,627 8,191 Profit attributable to non-controlling interests 1,146 1,709 Profit attributable to owners of parent 8,481 6,482
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Quarterly Consolidated Statement of Comprehensive Income For the Three-Month Period (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit 9,627 8,191 Other comprehensive income Valuation difference on available-for-sale securities 644 441 Deferred gains or losses on hedges (0) 0 Foreign currency translation adjustment (14,637) 1,433 Remeasurements of defined benefit plans, net of tax (254) (261) Share of other comprehensive income of entities accounted for using equity method (2,224) 188 Total other comprehensive income (16,471) 1,802 Comprehensive income (6,844) 9,994 Comprehensive income attributable to Comprehensive income attributable to owners of parent (4,420) 7,749 Comprehensive income attributable to non-controlling interests (2,424) 2,245
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Segment information (1) Three months ended June 30, 2025 (April 1, 2025 - June 30, 2025) Information about sales, profit and loss by reportable segment Notes: *1 The "Other" category includes business activities of subsidiaries and affiliates in the U.S., Mexico and other locations. *2 Adjustments for segment profit represent the elimination of intersegment transactions. *3 Segment profit is adjusted to reflect operating profit recorded in the Quarterly Consolidated Statement of Income which is adjusted by share of profit (loss) of entities accounted for using equity method. *4 Reportable segments other than Japan include the following countries: India: India, Bangladesh, Nepal and other locations. Europe: Slovenia, Turkey, Austria and other locations. Asia: Indonesia, Thailand, China and other locations. Africa: South Africa, Uganda, Zimbabwe and other locations. (2) Three months ended June 30, 2026 (April 1, 2026 - June 30, 2026) Information about sales, profit and loss by reportable segment Notes: *1 The "Other" category includes business activities of subsidiaries and affiliates in the U.S., Mexico and other locations. *2 Adjustments for segment profit represent the elimination of intersegment transactions. *3 Segment profit is adjusted to reflect operating profit recorded in the Quarterly Consolidated Statement of Income which is adjusted by share of profit (loss) of entities accounted for using equity method. *4 Reportable segments other than Japan include the following countries: India: India, Bangladesh, Nepal and other locations. Europe: Slovenia, Turkey, Austria and other locations. Asia: Indonesia, Thailand, China and other locations. Africa: South Africa, Uganda, Zimbabwe and other locations. (Millions of yen)Japan India Europe Asia Africa TotalNet sales(1) Sales to customers 39,270 36,964 37,887 16,616 11,492 142,231 2,449 144,680－ 144,680(2) Intersegment sales and transfers 3,805 23 39 739 27 4,635－ 4,635 (4,635) － Total sales 43,075 36,987 37,927 17,355 11,520 146,867 2,449 149,316 (4,635) 144,680Operating profit 4,563 4,451 344 1,558 1,043 11,962 278 12,240 0 12,241530 (29) (317) 941 37 1,163 322 1,485－ 1,485Segment profit 5,094 4,421 26 2,500 1,081 13,125 601 13,726 0 13,727Reportable segmentsOther *1 TotalConsolidated*3Adjustment*2Share of profit (loss) of entities accountedfor using equity method(Millions of yen)Japan India Europe Asia Africa TotalNet sales(1) Sales to customers 41,782 40,289 42,647 16,830 13,757 155,306 2,547 157,853－ 157,853(2) Intersegment sales and transfers 3,378 56 46 881 17 4,380－ 4,380 (4,380) － Total sales 45,160 40,346 42,693 17,711 13,775 159,687 2,547 162,234 (4,380) 157,853Operating profit 1,489 4,623 723 1,983 1,299 10,119 372 10,492 0 10,492654－ 711 1,308 30 2,705 247 2,952－ 2,952Segment profit 2,143 4,623 1,435 3,292 1,330 12,824 619 13,444 0 13,444Adjustment*2Consolidated*3Share of profit (loss) of entities accountedfor using equity methodReportable segmentsOther *1 Total
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Subsequent Events Business Combination by Acquisition At the meeting of the Board of Directors held on July 29, 2026, the Company resolved to acquire additional shares of Polisan Kansai Boya Sanayi ve Ticaret A.Ş. (head office: Turkey; hereinafter “PKB”), an equity-method affiliate of the Company, and to make PKB a consolidated subsidiary (hereinafter the “Share Acquisition”). As a result of the Share Acquisition, PKB is expected to become a consolidated subsidiary qualifying as a specified subsidiary. 1. Overview of the Business Combination (1) Name of the acquiree and description of business Name of acquiree: Polisan Kansai Boya Sanayi ve Ticaret A.Ş. Description of business: Manufacture and sale of paints and coatings (2) Primary reason for the business combination To realize the vision of “Enrich Lives with Happiness,” the Group has positioned “strengthening profitability and efficiency through structural reforms” as one of the key policies in the 18th Medium-Term Management Plan. In the Europe segment, the Group has been promoting “thorough profitability improvement through site and function integration and other measures.” Within this context, the Turkish market is expected to grow driven by domestic demand and is positioned as an important region connecting Europe, the Middle East and Africa. Under these circumstances, in order to accelerate management decision-making at PKB and maximize its earnings capacity through improvement of its financial structure, the Company decided to acquire additional shares of PKB and make PKB a wholly owned subsidiary. (3) Date of the business combination Around October 2026 (planned) (4) Legal form of the business combination Acquisition of shares for cash consideration (5) Name of the entity after the business combination No change (6) Ratio of voting rights acquired Ratio of voting rights held immediately before the business combination: 50.0% Ratio of voting rights to be additionally acquired on the business combination date: 50.0% Ratio of voting rights after the acquisition: 100.0% (7) Primary basis for determining the acquiring company The Company is the acquiring company because it will acquire shares for cash consideration. 2. Acquisition Cost of the Acquiree and Breakdown by Type of Consideration Consideration for additional acquisition: Cash: USD 93 million The acquisition cost in the step acquisition and the gain or loss arising from the step acquisition have not yet been determined as of the date of filing of these consolidated financial statements. 3. Details and Amount of Major Acquisition-related Costs Not finalized at this time 4. Difference between the Acquisition Cost of the Acquiree and the Total Acquisition Cost of Each Transaction Leading to the Acquisition A gain on the step acquisition is expected to be recognized; however, the amount has not yet been determined as of the date of filing of these consolidated financial statements.
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5. Amount of Goodwill to be Recognized, Reason for Recognition, Amortization Method and Amortization Period Not finalized at this time 6. Amounts of Assets Acquired and Liabilities Assumed on the Business Combination Date and Major Components Thereof Not finalized at this time