Interim report
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1 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. August 3, 2026 Consolidated Financial Report for the Six Months Ended June 30, 2026 <Under Japanese GAAP> OTSUKA CORPORATION (URL: https://www.otsuka-shokai.co.jp/) Listing: Tokyo Stock Exchange, Code 4768 Representative: Yuji Otsuka, President & Chief Executive Officer Contact: Hironobu Saito, Director & Executive Corporate Officer; General Manager of Business Administration Headquarters (Tel: +81-3-3264-7111) Scheduled date to file semi-annual securities report: August 10, 2026 Scheduled date to commence dividend payments: September 2, 2026 Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for analysts) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated Financial Results for the Six Months Ended June 30, 2026 (From January 1, 2026 to June 30, 2026) (1) Consolidated results of operations (Cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, 2026 757,498 9.0 53,088 8.0 54,824 9.4 36,982 8.4 June 30, 2025 695,132 22.0 49,173 26.6 50,099 25.7 34,127 26.7 Note) Comprehensive Income: For the six months ended June 30, 2026: 37,074 million yen [0.2%] For the six months ended June 30, 2025: 36,992 million yen [36.1%] Basic earnings per share Diluted earnings per share Six months ended yen yen June 30, 2026 97.53 97.36 June 30, 2025 90.00 － (2) Consolidated financial position Total assets Net assets Equity ratio As of Millions of yen Millions of yen % June 30, 2026 823,297 419,329 50.3 December 31, 2025 729,200 399,588 54.1 Reference) Equity: As of June 30, 2026: 413,806 million yen As of December 31, 2025: 394,324 million yen
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2 2. Dividends Annual dividends First quarter-end Second quarter- end Third quarter-end Year-end Total yen yen yen yen yen Fiscal Year ended December 31,2025 － 45.00 － 45.00 90.00 Fiscal Year ending December 31,2026 － 55.00 Fiscal Year ending December 31, 2026 (forecast) － 50.00 105.00 Note) Revision of the recently announced dividends forecasts: Yes 3. Consolidated Financial For ecasts for the Fiscal Year 2026 (From January 1, 2026 to December 31, 2026) (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 1,379,000 4.2 94,300 4.8 96,100 5.0 64,900 0.9 171.15 Notes) Revision of the recently announced financial forecasts: Yes The above forecasts are based on the information available as of the date of publication of this document. Actual results are subject to change due to various future events and may differ from these figures.
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3 * Notes (1) Significant changes in the scope of consolidation during the period: No (2) Application of specific accounting for preparing the semi-annual consolidated financial statements: Yes (3) Changes in accounting policies, change s in accounting estimates, and restatements 1) Changes in accounting policies due to revisions to accounting standards, etc.: No 2) Changes in accounting policies other than 1): No 3) Changes in accounting estimates: No 4) Restatements: No (4) Number of shares issued (common shares) 1) Number of shares issued at the end of the period (including treasury shares) As of June 30, 2026: 380,004,240 shares As of December 31, 2025: 380,004,240 shares 2) Number of treasury shares at the end of the period As of June 30, 2026: 803,061 shares As of December 31, 2025: 803,041 shares 3) Average number of shares during the period (cumulative from the beginning of the fiscal year) Six months ended June 30, 2026: 379,201,187 shares Six months ended June 30, 2025: 379,201,199 shares * Semi-annual financial reports are not subject to review to be conducted by certified public accountants or an audit firm.
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4 Semi-annual Consolidated Balance Sheets (Millions of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 252,058 257,024 Notes and accounts receivable - trade, and contract assets 219,579 271,185 Merchandise 53,670 69,138 Work in process 1,462 1,163 Raw materials and supplies 864 766 Other 78,041 90,029 Allowance for doubtful accounts (163) (215) Total current assets 605,514 689,092 Non-current assets Property, plant and equipment Buildings and structures, net 14,100 13,785 Other, net 21,700 21,693 Total property, plant and equipment 35,800 35,479 Intangible assets 30,610 34,576 Investments and other assets Investment securities 25,124 23,686 Other 32,632 40,947 Allowance for doubtful accounts (482) (485) Total investments and other assets 57,274 64,148 Total non-current assets 123,685 134,204 Total assets 729,200 823,297
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5 (Millions of yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 159,850 215,411 Electronically recorded obligations - operating 26,739 33,513 Short-term borrowings 4,300 4,300 Current portion of long-term borrowings 1,700 1,700 Income taxes payable 16,807 17,301 Provision for bonuses 5,697 6,497 Other 107,715 118,345 Total current liabilities 322,810 397,069 Non-current liabilities Provision for retirement benefits for directors (and other officers) 662 680 Retirement benefit liability 3,811 3,942 Other 2,326 2,276 Total non-current liabilities 6,801 6,898 Total liabilities 329,611 403,968 Net assets Shareholders’ equity Share capital 10,374 10,374 Capital surplus 16,254 16,254 Retained earnings 356,326 376,244 Treasury shares (143) (143) Total shareholders’ equity 382,812 402,730 Accumulated other comprehensive income Valuation difference on available-for-sale securities 7,673 7,170 Deferred gains or losses on hedges 551 913 Revaluation reserve for land (5,201) (5,201) Foreign currency translation adjustment 445 507 Remeasurements of defined benefit plans 8,042 7,685 Total accumulated other comprehensive income 11,511 11,075 Non-controlling interests 5,264 5,522 Total net assets 399,588 419,329 Total liabilities and net assets 729,200 823,297
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6 Semi-annual Consolidated Statements of Income and Comprehensive Income Semi-annual Consolidated Statements of Income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Net sales 695,132 757,498 Cost of sales 566,364 618,955 Gross profit 128,768 138,542 Selling, general and administrative expenses 79,594 85,454 Operating profit 49,173 53,088 Non-operating income Interest income 127 283 Dividend income 221 278 Share of profit of entities accounted for using equity method 388 540 Foreign exchange gains 151 790 Other 360 397 Total non-operating income 1,249 2,290 Non-operating expenses Interest expenses 31 41 Donations 289 512 Other 2 0 Total non-operating expenses 323 554 Ordinary profit 50,099 54,824 Extraordinary income Gain on sale of investment securities 5 6 Total extraordinary income 5 6 Extraordinary losses Loss on retirement of non-current assets 13 112 Loss on valuation of investment securities － 1,065 Loss on change in equity － 92 Loss on liquidation of investment securities 2 － Total extraordinary losses 15 1,270 Profit before income taxes 50,089 53,560 Income taxes 15,495 16,116 Profit 34,593 37,443 Profit attributable to non-controlling interests 466 461 Profit attributable to owners of parent 34,127 36,982
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7 Semi-annual Consolidated Statements of Comprehensive Income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Profit 34,593 37,443 Other comprehensive income Valuation difference on available-for-sale securities 1,552 (535) Deferred gains or losses on hedges (763) 444 Revaluation reserve for land 68 － Remeasurements of defined benefit plans, net of tax 1,506 (369) Share of other comprehensive income of entities accounted for using equity method 35 90 Total other comprehensive income 2,399 (369) Comprehensive income 36,992 37,074 (Breakdown) Comprehensive income attributable to owners of parent 36,641 36,546 Comprehensive income attributable to non-controlling interests 350 527
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8 Semi-annual Consolidated Statements of Cash Flows (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 50,089 53,560 Depreciation 4,436 5,524 Increase (decrease) in allowance for doubtful accounts 92 54 Interest and dividend income (348) (562) Interest expenses 31 41 Share of loss (profit) of entities accounted for using equity method (388) (540) Loss on retirement of non-current assets 13 112 Loss (gain) on sale of investment securities (5) (6) Loss (gain) on valuation of investment securities － 1,065 Loss (gain) on change in equity － 92 Decrease (increase) in trade receivables (43,464) (51,607) Decrease (increase) in inventories 9,507 (15,071) Increase (decrease) in trade payables 21,506 62,335 Increase (decrease) in accrued expenses 15,446 16,601 Other, net 651 (13,905) Subtotal 57,567 57,695 Interest and dividends received 371 649 Interest paid (30) (42) Income taxes paid (12,717) (15,724) Net cash provided by (used in) operating activities 45,190 42,577 Cash flows from investing activities Purchase of property, plant and equipment (2,548) (1,206) Purchase of software (6,430) (8,449) Purchase of investment securities (5) (8) Proceeds from sale of investment securities 8 7 Payments into time deposits (100) (10,000) Other, net (50) (252) Net cash provided by (used in) investing activities (9,126) (19,909) Cash flows from financing activities Dividends paid (30,323) (17,062) Other, net (222) (269) Net cash provided by (used in) financing activities (30,546) (17,331) Effect of exchange rate change on cash and cash equivalents (2) (1) Net increase (decrease) in cash and cash equivalents 5,515 5,334 Cash and cash equivalents at beginning of period 229,488 253,620 Cash and cash equivalents at end of period 235,003 258,955
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9 Segment Information Information concerning net sales and segment profit/loss by reportable segments Six months ended June 30, 2025 (Millions of yen) Reportable segments Total Adjustment Amount recorded in semi-annual consolidated statements of income System Integration business Service and Support business Net sales Outside customers sales 490,101 205,030 695,132 － 695,132 Inter-segment sales/transfers 577 879 1,457 (1,457) － Total 490,679 205,910 696,590 (1,457) 695,132 Segment profit 39,667 16,129 55,796 (6,622) 49,173 Six months ended June 30, 2026 (Millions of yen) Reportable segments Total Adjustment Amount recorded in semi-annual consolidated statements of income System Integration business Service and Support business Net sales Outside customers sales 536,735 220,763 757,498 － 757,498 Inter-segment sales/transfers 550 952 1,502 (1,502) － Total 537,285 221,715 759,001 (1,502) 757,498 Segment profit 43,531 16,541 60,073 (6,984) 53,088