Interim report
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Note : This document is a translation of the original Japanese version and provided for reference purposes only . In the event of any discrepancy between the Japanese original and this English translation , the Japanese original shall prevail . SAKATA INX ... Visual Communication Technology Consolidated Financial Results for the Six Months Ended June 30 , 2026 [ Japanese GAAP ] SAKATA INX CORPORATION Company name : Code number : Stock exchange listing : Tokyo 4633 FASF MEMBERSHIP August 7 , 2026 URL : Representative : Contact : Phone : https://www.inx.co.jp/english/ Yoshiaki Ueno Takahiro Kiuchi + 81-6-6447-5824 Representative Director , President & CEO General Manager , Finance & Accounting Div . Scheduled date of filing semi - annual securities report : Scheduled date of commencing dividend payments : Availability of supplementary briefing material on financial results : Schedule of financial results briefing session : August 7 , 2026 September 4 , 2026 Yes Yes ( For institutional investors and analysts ) ( Amounts of less than one million yen are rounded down ) 1. Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( % indicates changes from the previous corresponding period . ) Net sales Operating income Ordinary income Net income attributable to owners of parent Six months ended June 30 , 2026 Million yen 142,031 June 30 , 2025 126,396 % 12.4 4.4 Million yen 9,023 7,645 % 18.0 5.4 Million yen % Million yen % 9,934 14.9 6,694 7.1 8,649 21.0 6,249 17.5 ( Note ) Comprehensive income : Six months ended June 30 , 2026 : Six months ended June 30 , 2025 : \ 11,039 million - % ] ¥ ( 649 ) million - % ] Basic earnings Diluted earnings per share per share Six months ended June 30 , 2026 June 30 , 2025 Yen 136.94 126.22 Yen ( 2 ) Consolidated Financial Position Total assets Net assets Equity ratio As of June 30 , 2026 December 31 , 2025 Million yen 242,576 Million yen 134,134 225,864 126,519 % 52.0 52.8 ( Note ) Equity : As of June 30 , 2026 : ¥ 126,087million As of December 31 , 2025 : \ 119,158million 2. Dividends Annual dividends 1st 2nd quarter - end quarter - end quarter - end 3rd Year - end Total Yen Yen 50.00 Yen 95.00 50.00 100.00 Yen Fiscal year ended December 31 , 2025 Fiscal year ending December 31 , 2026 Yen 45.00 50.00 Fiscal year ending December 31 , 2026 ( Forecast ) ( Note ) Revision to the forecast for dividends announced most recently : No 3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31 , 2026 ( January 1 , 2026 to December 31 , 2026 ) Net sales ( % indicates changes from the previous corresponding period . ) Operating income Ordinary income Million yen % Million yen 286,500 11.2 17,000 11.6 17,800 Net income attributable to owners of parent Million yen % % 15.8 Million yen 11,800 % 1.6 Full year ( Note ) Revision to the financial results forecast announced most recently : Yes Basic earnings per share Yen 241.84
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* Notes: (1) Significant changes in the scope of consolidation during the six months ended June 30, 2026 Yes Included: 1 company (SAKATA INX SPLIT PREPARATION CORPORATION) Excluded: – (2) Accounting policies adopted specially for the preparation of semi-annual consolidated financial statements: No (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: No 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No 4) Retrospective restatement: No (4) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): June 30, 2026: 50,000,000 shares December 31, 2025: 54,172,361 shares 2) Total number of treasury shares at the end of the period: June 30, 2026: 1,248,862 shares December 31, 2025: 5,043,947 shares 3) Average number of shares outstanding during the period: Six months ended June 30, 2026: 48,888,395 shares Six months ended June 30, 2025: 49,514,261 shares * The semi-annual consolidated financial results are not subject to review procedures by certified public accountants or an audit firm. * Explanation of appropriate use of financial forecasts and other special notes 1. Forward-looking statements contained in this document, including forecasts of business performance, are based on information currently available to the Company and on certain assumptions deemed reasonable by the Company, and are not intended as a guarantee of future results. Actual results may differ materially from such statements due to various factors. For information regarding the financial results forecast, please refer to “1. Overview of Operating Results, etc. (3) Consolidated forecast and other forward-looking statements” on page 5 of Attachments. 2. Supplementary briefing material on financial results will be disclosed on TDnet at a later date and will also be posted on the Company’s website.
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- 1 - Contents of Attachments 1. Overview of Operating Results, etc. 2 (1) Overview of operating results for the period under review 2 (2) Overview of financial position for the period under review 5 (3) Consolidated forecast and other forward-looking statements 5 2. Semi-annual Consolidated Financial Statements and Principal Notes 7 (1) Semi-annual consolidated balance sheets 7 (2) Semi-annual consolidated statements of income and semi-annual consolidated statements of comprehensive income 9 Semi-annual consolidated statements of income 9 Semi-annual consolidated statements of comprehensive income 10 (3) Semi-annual consolidated statements of cash flows 11 (4) Notes to semi-annual consolidated financial statements 13 Segment information, etc. 13 Significant changes in the amount of shareholders’ equity 15 Going concern assumption 15 Additional information 15 * The Company plans to hold a briefing session for investors as follows. All materials to be distributed at the briefing session will be disclosed at the same time as this financial report. ・Financial results briefing session for institutional investors and securities analysts: Friday, August 7, 2026
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- 2 - 1. Overview of Operating Results, etc. (1) Overview of operating results for the period under review During the six months ended June 30 , 2026 (the “period under review”), the global economy maintained solid growth , led by the United States; however, inflation pressure mounted again due to rising energy prices and disruptions in the logistics network driven by the intensifying situation in the Middle East . In addition, the uncertainty surrounding the global economy remained high, as delays in maritime transportation and soaring transportation costs affected supply chains, among other factors. In the U.S., personal consumption and capital investment remained solid, and the economy remained generally firm. Meanwhile, increasing inflation pressure heightened uncertainty over the outlook for monetary policy. In Europe, while a recovery in personal consumption was observed, the pace of economic recovery lacked momentum due to rising energy costs and stagnant industrial activities. In Asia, solid growth driven by expanding domestic demand continued, centered on India and Vietnam, while divergences in economic sentiment across countries and regions widened due to factors such as a delayed recovery in the Chinese economy and the effects of inflation and currency depreciation in some regions. In Japan, the economic recovery remained modest due in part to uncertainty over the outlook for overseas economies in addition to rising raw material and energy costs although personal consumption recovered gradually against the backdrop of improvements in the employment and income conditions. Under these circumstances, this year is the final year of the Medium -term Management Plan 2026 (CCC -II), which is the phase of business growth, stronger earnings capabilities, to achieve the long -term strategic vision “SAKATA INX VISION 2030,” which is targeted for the year 2030. The Group has promoted aggressive expansion of sustainable products centered on environmentally friendly products, such as the BOTANICAL INK series, while also working to enhance the competitiveness of the functional coatings business, where demand is expected to grow. Particularly, in the packaging field, the Group continued to expand sales in growing regions where the middle class is expanding due to its population growth and economic development. Along with this, the Group promoted global management cooperation by enhancing and expanding strategic products for global accounts and streamlining purchasing, production and logistics through regional collaboration. In the Digital and Specialty Product business, the Group expanded sales of inkjet inks, in addition to existing products, in emerging markets of apparel, food, and home furnishings. Furthermore, the Group promoted sales expansion of high-quality products of image display materials. In addition, with raw material prices rising globally due to the impact of the situation in the Middle East, the Group prioritized the stable supply of products and worked on emergency selling price revisions across the Group to reflect the increase in raw material costs. Net sales amounted to 142,031 million yen (up 12.4% YoY), mainly due to factors such as strong sales of printing inks and the Digital and Specialty Products , the effects of selling price revisions , and the impact of foreign exchange rates due to the depreciation of the yen. In terms of profit, operating income amounted to 9, 023 million yen (up 18.0% YoY). The increase was primarily driven by higher sales volume, and the impact arising from a time lag in reflecting raw material costs in prices in some areas, despite rising raw material prices stemming from the situation in the Middle East, and a continued increase in personnel and other expenses in the Americas. Ordinary income amount ed to 9,934 million yen (up 1 4.9% YoY). Net income attributable to owners of parent amounted to 6,694 million yen (up 7.1% YoY). (Reference) Average exchange rate of the US dollar during the period 1st quarter 2nd quarter 1st half FY12/26 156.86 yen 159.49 yen 158.18 yen FY12/25 152.60 yen 144.59 yen 148.60 yen (Note) The average exchange rate during the 1st half is calculated as the simple average of monthly exchange rates from January through June.
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- 3 - The operating results by segment are as follows. Beginning with the second quarter of the fiscal year under review, the Company has reclassified some segments of consolidated subsidiaries previously included in “Other” into the “Digital and Specialty Products” segment. Accordingly, the segment information for the first six months of the previous fiscal year has been restated based on the revised segment classification. (Million yen, unless otherwise stated) Net sales Operating income Previous period Current period Change Change [%] Real* [%] Previous period Current period Change Change [%] Printing Inks and Graphic Arts Materials (Japan) 24,913 26,900 1,986 8.0 8.0 448 2,181 1,733 386.6 Printing Inks (Asia) 26,817 30,412 3,595 13.4 7.6 3,128 3,350 222 7.1 Printing Inks (Americas) 50,398 56,272 5,873 11.7 3.8 3,090 2,262 (828) (26.8) Printing Inks (Europe) 10,530 12,862 2,331 22.1 9.8 175 547 371 211.2 Digital and Specialty Products 13,048 15,112 2,063 15.8 11.8 1,106 1,208 102 9.3 Reportable Segment total 125,709 141,559 15,849 12.6 6.8 7,949 9,550 1,601 20.1 Other 4,048 3,637 (411) (10.2) (10.2) 208 83 (125) (59.9) Adjustments (3,361) (3,164) 196 – – (512) (610) (98) – Total 126,396 142,031 15,635 12.4 6.6 7,645 9,023 1,378 18.0 * “Real” represents a real percentage change excluding the impact of foreign currency translation of overseas consolidated subsidiaries Printing Inks and Graphic Arts Materials (Japan) Although the wave of price revisions across necessities, food, and beverages have largely run their course, personal consumption continued to lack momentum due to a continued more cost-conscious spending stance among consumers amid prolonged price increases. In the packaging related business, sales exceeded those of the same period of the previous year, as demand for both gravure and flexographic inks continued to recover and temporary demand in some areas arose due to concerns about the outlook for the situation in the Middle East . In the printing information related business, sales fell significantly below those of the same period of the previous year, reflecting the impact of reducing unprofitable items in offset inks to improve profitability , although newspaper inks remained relatively solid, amid the structural contraction of the market caused by digitalization. Under such circumstances, the sales of printing inks as a whole exceeded those for the same period of the previous year thanks to the continued efforts to price revisions as well as the effects of emergency selling price revisions, despite a decrease in sales volume as a whole. The graphic arts materials saw a slight increase due to an increase in the sales of machinery from the same period of the previous year, despite the impact of the reduction of unprofitable items in materials for printmaking. As a result, net sales amounted to 26,900 million yen (up 8.0% YoY). In terms of profit, despite the impact of rising raw material prices, operating income amounted to 2,181 million yen (up 386.6% YoY) primarily due to improved profitability reflecting reduction of unprofitable items and the effects of selling price revisions, as well as a time lag in reflecting raw material costs in prices in some areas. Printing Inks (Asia) Against a backdrop of divergences in economic sentiment within the region, the sales of packaging -related gravure inks, which are the Group’s mainstay products, remained solid in Vietnam, and sales also exceeded those of the same period of the previous year in India, Indonesia, and Thailand, among other countries. In the printing information-related
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- 4 - business, sales remained solid in India.Net sales amounted to 30,412 million yen (up 13.4% YoY), due to strong sales, the effects of selling price revisions, and the impact of foreign exchange translation effects. In terms of profit, operating income amounted to 3,350 million yen (up 7.1% YoY), primarily due to strong sales, despite the impact of rising raw material prices. Printing Inks (Americas) The sales of flexo inks and gravure inks in the mainstay packaging-related business remained strong due to continued gradual recovery of demand in North America as well as sales expansion in South America including Brazil. Sales of coatings also continued to expand steadily . The sales of metal inks were strong, backed by a continued expansion of demand for aluminum cans from the perspective of environmental impact, along with steady sales expansion driven by the ongoing shift from glass bottles to aluminum cans in Central and South America. The sales of offset inks, which are related to printing information, remained at the same level as the same period of the previous year, despite the structural contraction of the market. Net sales amounted to 56,272 million yen (up 11.7% YoY) primarily due to the grow th in sales volume, the effect s of selling price revisions, and the impact of foreign exchange translation. In terms of profit, operating income amounted to 2,262 million yen (down 26.8% YoY), primarily due to the impact of rising raw material prices and a continued increase in personnel expenses, an increase in various expenses related to the renewal of logistics and core systems, and depreciation expenses associated with the new plant in Brazi l, despite the growth in sales volume and the effects of selling price revisions. Printing Inks (Europe) Sales of metal inks were strong, particularly to major customers, and sales in the packaging -related business also increased. Net sales amounted to 12,862 million yen (up 22.1% YoY) primarily due to strong sales and foreign exchange translation effects. In terms of profit, operating income amounted to 547 million yen (up 211.2% YoY) primarily due to the positive impact of increased profit driven by strong sales. Digital and Specialty Products The sales of inkjet inks exceeded those o f the same period of the previous year, partly due to strong sales in the U.S. The sales of pigment dispersions for color filters also exceeded those of the same period of the previous year due to strong sales, despite a continued adjustment to operating rates at panel manufacturers. The sales of toner exceeded those of the same period of the previous year due to strong sales. As a result, net sales amounted to 15,112 million yen (up 15.8% YoY). In terms of profit, operating income amounted to 1,208 million yen (up 9.3% YoY) primarily due to an increase in sales, despite an increase in expenses.
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- 5 - (2) Overview of financial position for the period under review (i) Assets, liabilities and net assets Total assets at the e nd of the period under review increased 16,712 million yen ( 7.4%) from the end of the previous fiscal year to 242,576 million yen. This was due to increases in notes and accounts receivable – trade and inventories as well as the impact of foreign exchange translation resulting from the depreciation of the yen against foreign currencies compared with the end of the previous fiscal year. Liabilities increased 9,098 million yen (9.2%) from the end of the previous fiscal year to 108,442 million yen. This was mainly due to increases in notes and accounts payable – trade and loans payable as well as the impact of foreign currency translation. Net assets increased 7,614 million yen (6.0%) from the end of the previous fiscal year to 134,134 million yen. This was due to a decrease in treasury shares, which are presented as a deduction from net assets, and an increase in foreign currency translation adjustments, which more than offset a decrease in retained earnings resulting from dividend payments and the cancellation of treasury shares, despite the recognition of net income attributable to owners of the parent. (ii) Cash flows The following is a summary of cash flows for the period under review. Net cash provided by operating activities totaled 4,006 million yen. This was mainly due to income before income taxes and depreciation and amortization, which were partially offset by an increase in working capital and payments of income taxes. Compared to the same period of the previous fiscal year, net cash provided by operating activities increased by 847 million yen, mainly due to higher income before income taxes. Net cash used in investing activities totaled 4,052 million yen (compared with 3,609 million yen used in the same period of t he previous fiscal year). This was mainly due to purchase of property, plant and equipment , and p urchase of intangible assets. The year -on-year increase in net cash used was mainly attributable to increased purchase of intangible assets as well as de creased proceeds from sale of investment securities , which w ere partially offset by decreased purchase of property, plant and equipment. Net cash provided by financing activities totaled 178 million yen. This was mainly due to an increase in loans payable, which was partially offset by cash dividends paid and purchase of treasury shares. Compared to the same period of the previous fiscal year, net cash provided by financing activities decreased by 347 million yen. The year-on-year decrease in net cash provided was mainly attributable to the increases in cash dividends paid and purchase of treasury shares , which more than offset the increase in loans payable. As a result, cash and cash equivalents at the end of the period under review totaled 19,290 million yen, an increase of 508 million yen compared to the end of the previous fiscal year. (3) Consolidated forecast and other forward-looking statements Given the ongoing uncertainty surrounding the situation in the Middle East, it is necessary to carefully assess the outlook for the global economy. Although crude oil and naphtha prices have eased following a brief period of sharp increases, they still remain highly volatile against the backdrop of heightened geopolitical risks. The Group has been taking measures such as sourcing raw materials through leveraging its global network, switching to alternative raw materials, and appropriately passing on cost increases to selling prices . Then, there have been no significant disruptions to product supply for now . However, depending on future developments in the Middle East situation, there is a possibility that the Group’s performance could be affected by further increases in raw material prices and logistics costs, fluctuations in foreign exchange rates, as well as impacts on customers’ production activities and demand trends. Based on these assumptions and taking into account the results for the period under review, we have revised our full- year consolidated financial results forecast for the fiscal year ending December 31, 2026, which was announced on February 12, 2026. Net sales are expected to exceed the initial forecast, primarily due to expanded sales of environmentally friendly products with reduced toluene content, continued sales growth of conventional products, and the anticipated benefits of selling price revisions.
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- 6 - On the other hand, although profits are expected to benefit from the selling price revisions, rising raw material costs and increases in various other expenses are also expected. Accordingly, we have left our initial profit forecast unchanged. As for the underlying assumptions, the exchange rate for the U.S. dollar, which has a significant impact on the translation of income and expenses of overseas consolidated subsidiaries, is assumed at ¥152.00 per dollar from the third quarter onward, and ¥155.00 for the full year on a simple annual average basis. Revision of Full-Year Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2026 Net sales Operating income Ordinary income Net income attributable to owners of parent Basic earnings per share The latest consolidated financial results forecast Million yen Million yen Million yen Million yen Yen 276,000 17,000 17,800 11,800 241.84 Revised forecast (B) 286,500 17,000 17,800 11,800 241.84 Change (B-A) 10,500 - - - Change [%] 3.8 - - - (Note) Results for the previous fiscal year December 31, 2025 257,668 15,226 15,364 11,609 235.26
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- 7 - 2. Semi-annual Consolidated Financial Statements and Principal Notes (1) Semi-annual consolidated balance sheets (Million yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 20,595 22,111 Notes and accounts receivable – trade 62,526 70,071 Merchandise and finished goods 19,850 20,773 Work in process 1,700 1,715 Raw materials and supplies 18,140 19,898 Other 5,074 5,764 Allowance for doubtful accounts (618) (655) Total current assets 127,269 139,677 Non-current assets Property, plant and equipment Buildings and structures, net 22,659 23,488 Machinery, equipment and vehicles, net 12,383 13,589 Land 10,389 10,440 Leased assets, net 156 159 Construction in progress 5,115 4,147 Other, net 6,630 7,263 Total property, plant and equipment 57,334 59,087 Intangible assets Goodwill 1,315 1,236 Other 5,837 6,338 Total intangible assets 7,152 7,575 Investments and other assets Investment securities 30,173 32,268 Other 4,037 4,076 Allowance for doubtful accounts (104) (109) Total investments and other assets 34,107 36,236 Total non-current assets 98,594 102,899 Total assets 225,864 242,576
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- 8 - (Million yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable – trade 25,437 32,511 Electronically recorded obligations – operating 11,833 7,986 Short-term loans payable 7,098 12,536 Current portion of long-term loans payable 2,903 7,128 Current portion of bonds payable 1,000 – Lease obligations 905 1,056 Accrued expenses 7,688 7,314 Income taxes payable 1,133 964 Provision for bonuses 766 737 Other 3,509 4,181 Total current liabilities 62,275 74,417 Non-current liabilities Long-term loans payable 18,895 14,645 Lease obligations 2,797 3,292 Deferred tax liabilities 5,994 6,414 Retirement benefit liability 4,704 4,723 Asset retirement obligations 76 68 Other 4,600 4,881 Total non-current liabilities 37,068 34,025 Total liabilities 99,344 108,442 Net assets Shareholders' equity Capital stock 7,472 7,472 Capital surplus 5,828 5,672 Retained earnings 91,590 90,729 Treasury shares (5,912) (1,619) Total shareholders’ equity 98,979 102,255 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,582 1,945 Deferred gains or losses on hedges 1 7 Foreign currency translation adjustment 18,203 21,481 Remeasurements of defined benefit plans 390 398 Total accumulated other comprehensive income 20,178 23,832 Non-controlling interests 7,361 8,046 Total net assets 126,519 134,134 Total liabilities and net assets 225,864 242,576
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- 9 - (2) Semi-annual consolidated statements of income and semi-annual consolidated statements of comprehensive income Semi-annual consolidated statements of income (Million yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Net sales 126,396 142,031 Cost of sales 94,971 106,103 Gross profit 31,424 35,928 Selling, general and administrative expenses 23,778 26,904 Operating income 7,645 9,023 Non-operating income Interest income 122 179 Dividend income 101 77 Equity in earnings of associates 751 1,082 Foreign exchange gains 341 – Other 303 237 Total non-operating income 1,620 1,576 Non-operating expenses Interest expenses 520 472 Foreign exchange losses – 91 Other 96 102 Total non-operating expenses 616 665 Ordinary income 8,649 9,934 Extraordinary income Gain on sale of investment securities 680 29 Total extraordinary income 680 29 Extraordinary losses Loss on retirement of non-current assets 27 47 Loss on sale of investment securities – 6 Head office relocation expenses 110 – Loss on valuation of investment securities 216 0 Compensation for damage – 327 Total extraordinary losses 355 381 Income before income taxes 8,975 9,582 Income taxes – current 1,834 2,092 Income taxes – deferred 159 268 Total income taxes 1,994 2,361 Net income 6,980 7,221 Net income attributable to non-controlling interests 731 526 Net income attributable to owners of parent 6,249 6,694
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- 10 - Semi-annual consolidated statements of comprehensive income (Million yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Net income 6,980 7,221 Other comprehensive income Valuation difference on available-for-sale securities (667) 290 Deferred gains or losses on hedges (0) 5 Foreign currency translation adjustment (5,303) 2,709 Remeasurements of defined benefit plans, net of tax (19) 13 Share of other comprehensive income of associates accounted for using equity method (1,638) 798 Total other comprehensive income (7,630) 3,818 Comprehensive income (649) 11,039 Comprehensive income attributable to: Owners of parent (866) 10,348 Non-controlling interests 216 690
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- 11 - (3) Semi-annual consolidated statements of cash flows (Million yen) For the six months ended June 30,2025 For the six months ended June 30,2026 Cash flows from operating activities Income before income taxes 8,975 9,582 Depreciation and amortization 2,964 3,200 Amortization of goodwill 114 131 Increase (decrease) in allowance for doubtful accounts 38 20 Increase (decrease) in retirement benefit liability (28) 0 Increase (decrease) in provision for bonuses (111) (31) Head office relocation expenses 110 – Interest and dividend income (223) (256) Interest expenses 520 472 Equity in losses (earnings) of associates (751) (1,082) Loss (gain) on sale of investment securities (680) (22) Loss (gain) on valuation of investment securities 216 0 Loss on compensation for damage – 327 Loss on retirement of non-current assets 27 47 Decrease (increase) in notes and accounts receivable – trade (85) (6,230) Decrease (increase) in inventories (1,151) (1,649) Increase (decrease) in notes and accounts payable – trade including electronically recorded obligations – operating (4,104) 2,502 Other, net (1,601) (1,273) Subtotal 4,228 5,738 Interest and dividend income received 486 522 Interest expenses paid (528) (482) Income taxes paid (1,027) (1,772) Net cash provided by (used in) operating activities 3,159 4,006 Cash flows from investing activities Purchase of property, plant and equipment (3,292) (2,187) Proceeds from sale of property, plant and equipment 18 10 Purchase of intangible assets (63) (943) Purchase of investment securities (813) (89) Proceeds from sale of investment securities 1,027 66 Payments of loans receivable (21) (23) Collection of loans receivable 28 32 Other, net (492) (917) Net cash provided by (used in) investing activities (3,609) (4,052)
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- 12 - (Million yen) For the six months ended June 30,2025 For the six months ended June 30,2026 Cash flows from financing activities Net increase (decrease) in short-term loans payable 4,155 5,139 Proceeds from long-term loans payable 2,722 1,000 Repayments of long-term loans payable (3,198) (1,259) Redemption of bonds – (1,000) Cash dividends paid (2,237) (2,462) Dividends paid to non-controlling interests (202) (5) Purchase of treasury shares (522) (1,000) Proceeds from sale of treasury shares 0 1 Other, net (190) (234) Net cash provided by (used in) financing activities 526 178 Effect of exchange rate change on cash and cash equivalents 352 375 Net increase (decrease) in cash and cash equivalents 428 508 Cash and cash equivalents at beginning of period 14,583 18,782 Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation 95 – Cash and cash equivalents at end of period 15,107 19,290
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- 13 - (4) Notes to semi-annual consolidated financial statements Segment information, etc. I. For the six months ended June 30, 2025 (From January 1, 2025 to June 30, 2025) 1. Information on amounts of sales and profit or loss and on revenue breakdown by reportable segment (Million yen) Reportable segment Other (*1) Total Adjustment (*2) Amount recorded in semi-annual consolidated statement of income (*3) Printing Inks and Graphic Arts Materials (Japan) Printing Inks (Asia) Printing Inks (Americas) Printing Inks (Europe) Digital and Specialty Products Total Revenues Revenues from contracts with customers 24,450 26,725 50,054 10,239 13,038 124,508 1,887 126,396 – 126,396 Other revenues – – – – – – – – – – Sales to external customers 24,450 26,725 50,054 10,239 13,038 124,508 1,887 126,396 – 126,396 Intersegment sales and transfers 462 91 344 291 10 1,200 2,160 3,361 (3,361) – Total 24,913 26,817 50,398 10,530 13,048 125,709 4,048 129,757 (3,361) 126,396 Segment income 448 3,128 3,090 175 1,106 7,949 208 8,158 (512) 7,645 (Notes) 1. The “Other” is a business segment not included in the reportable segments and contains the chemical products business, the display service business, and the brand protection solution business in Japan. 2. The adjustment of negative 512 million yen to segment income includes elimination of intersegment transaction of 79 millio n yen and corporate expenses not allocated to each reportable segment of negative 591 million yen. Corporate expenses mainly consist of general and administrative expenses and research and development expenses that are not attributable to any reportable segment. 3. Segment income is adjusted with operating income in the semi-annual consolidated statement of income. 2. Information on impairment loss or goodwill on non-current assets by reportable segment During the six months ended June 30, 2025, there are no significant impairment losses recognized on non-current assets, no significant changes recognized in the amount of goodwill, and no significant gains recognized on bargain purchases.
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- 14 - II. For the six months ended June 30, 2026 (From January 1, 2026 to June 30, 2026) 1. Information on amounts of sales and profit or loss and on revenue breakdown by reportable segment (Million yen) Reportable segment Other (*1) Total Adjustment (*2) Amount recorded in semi-annual consolidated statement of income (*3) Printing Inks and Graphic Arts Materials (Japan) Printing Inks (Asia) Printing Inks (Americas) Printing Inks (Europe) Digital and Specialty Products Total Revenues Revenues from contracts with customers 26,388 30,363 55,809 12,570 15,073 140,205 1,826 142,031 – 142,031 Other revenues – – – – – – – – – – Sales to external customers 26,388 30,363 55,809 12,570 15,073 140,205 1,826 142,031 – 142,031 Intersegment sales and transfers 511 49 462 291 38 1,353 1,810 3,164 (3,164) – Total 26,900 30,412 56,272 12,862 15,112 141,559 3,637 145,196 (3,164) 142,031 Segment income 2,181 3,350 2,262 547 1,208 9,550 83 9,634 (610) 9,023 (Notes) 1. The “Other” is a business segment not included in the reportable segments and contains the chemical products business, the display service business and the brand protection solution business in Japan. 2. The adjustment of negative 61 0 million yen to segment income includes elimination of intersegment transaction of 91 million yen and corporate expenses not allocated to each reportable segment of negative 702 million yen. Corporate expenses mainly consist of general and administrative expenses and research and development expenses that are not attributable to any reportable segment. 3. Segment income is adjusted with operating income in the semi-annual consolidated statement of income. 2. Matters relating to change in reportable segments Beginning with the second quarter of the fiscal year under review, the Company has reclassified some segments of consolidated subsidiaries previously included in “Other” into the “Digital and Specialty Products” segment, following a partial review of internal management classifications within the Group. The segment information for the first six months of the previous fiscal year has been restated based on the revised segment classification. 3. Information on impairment loss or goodwill on non-current assets by reportable segment During the six months ended June 30, 2026, there are no significant impairment losses recognized on non-current assets, no significant changes recognized in the amount of goodwill, and no significant gains recognized on bargain purchases.
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- 15 - Significant changes in the amount of shareholders’ equity The Company acquired a total of 396,300 shares of its own stock by June 30, 202 6, based on the resolution of the Board of Directors meeting held on February 12, 2026. As a result, treasury shares increased by 999 million yen during the period under review. In addition, the Company disposed of a total of 18,191 treasury shares as restricted stock compensation, based on the resolution of the Board of Directors meeting held on March 26, 2026. Furthermore, the Company resolved to cancel its treasury shares at the Board of Directors meeting held on May 11, 2026, and cancelled a total of 4,172,361 treasury shares on May 29, 2026. As a result, capital surplus decreased by 156 million yen, retained earnings decreased by 5,093 million yen, and treasury shares decreased by 5,291 million yen during the period under review. As of June 30, 2026, capital surplus, retained earnings and treasury shares amounted to 5,672 million yen, 9 0,729 million yen, and 1,619 million yen, respectively. Going concern assumption Not applicable Additional information Employee stock ownership plan (1) Outline of the plan The Company resolved at the meeting of the Board of Directors held on November 11, 2024 to introduce an employee stock ownership plan (hereinafter the “Plan”) for employees of the Company and its subsidiaries (hereinafter the “Employees”), aiming to enhance the Company's corporate value over the medium to long term. One of the initiatives in our Medium -term Management Plan is human capital policy, which is the foundation for achieving sustained development. As part of this policy, we intend to foster a sense of participation in management among the Employees, which will lead to the sustained enhancement of the Group's corporate value. Since the Employees can receive economic benefits from an increase in the Company's share price, the Plan is expected to encourage them to perform their duties with a keen awareness of the share price as well as to motivate them to strive harder. The Plan delivers the Company's shares acquired as an incentive plan for the Employees by the Employee Stock Ownership Plan Trust to the Employees who fulfill certain requirements based on the terms set forth in the Plan. (2) The Company's shares remaining in the trust The Company's shares remaining in the trust are recorded as treasury shares in net assets based on their book value in the trust (excluding the amount of incidental expenses). The book value and number of such treasury shares were 202 million yen and 126,968 shares as of December 31, 2025, and 200 million yen and 125,705 shares as of June 30, 2026, respectively. (3) Scope of recipients of beneficiary rights and other rights under the Plan The Employees who satisfy the conditions for stock grant