Interim report
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- 1 - 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. Consolidated Financial Results for the Six Months Ended September 30, 2025 [Under IFRS] November 12, 2025 Company name: Dexerials Corporation Listing: Tokyo Stock Exchange Security code: 4980 URL: https://www.dexerials.jp/en Representative: Yoshihisa Shinya, Representative Director and President Contact: Ryota Washimori, General Manager, PR&IR Department, Corporate Strategy Division Phone: +81-285-39-7950 Scheduled date to file Semi-annual Securities Report: November 12, 2025 Scheduled date to commence dividend payments: December 18, 2025 Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for securities analysts and institutional investors) (Note) Amounts less than one million yen have been omitted. 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) (Percentage indicates year-on-year changes.) Net sales Business profit EBITDA Operating profit Profit before tax Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2025 57,456 (3.7) 20,153 (9.7) 23,723 (7.2) 19,902 (14.7) 19,794 (12.2) September 30, 2024 59,635 20.2 22,320 38.2 25,564 35.9 23,319 57.0 22,533 54.3 Profit Profit attributable to owners of parent Total comprehensive income Basic earnings per share Diluted earnings per share Six months ended Millions of yen % Millions of yen % Millions of yen % Yen Yen September 30, 2025 13,410 (15.4) 13,410 (15.4) 13,569 (7.4) 79.65 76.39 September 30, 2024 15,856 52.7 15,856 52.5 14,655 36.0 92.27 88.17 Notes: 1. For details of business profit and EBITDA, please refer to “* Proper use of earnings forecast, and other special notes, (Business profit and EBITDA).” 2. Effective October 1, 2024, the Company conducted a 3-for-1 split of common shares. Accordingly, basic earnings per share and diluted earnings per share were calculated based on the assumption that the stock split had been conducted at the beginning of the fiscal year ended March 31, 2025. (2) Consolidated financial position Total assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets Equity attributable to owners of parent per share As of Millions of yen Millions of yen Millions of yen % Yen September 30, 2025 158,783 103,222 103,222 65.0 610.13 March 31, 2025 151,821 95,915 95,915 63.2 570.77 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 - 78.00 - 32.00 - Fiscal year ending March 31, 2026 - 29.00 Fiscal year ending March 31, 2026 (forecast) - 29.00 58.00 Notes: 1. Revisions to dividend forecast published most recently: None 2. Effective October 1, 2024, the Company conducted a 3-for-1 split of common shares. As a result, the total annual dividends per share for the year ended March 31, 2025 is not presented, as they cannot be simply aggregated.
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- 2 - 3. Forecast of consolidated financial results for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026) (Percentages indicate year-on-year changes.) Net sales Business profit Operating profit Profit before tax Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen Yen Fiscal year 114,000 3.3 39,000 2.4 39,000 (1.9) 38,500 (2.2) 26,000 (6.3) 153.69 Notes: 1. Revisions to earnings forecast published most recently: Yes 2. For revisions to the earnings forecast, please refer to the “Notice of Revised Consolidated Earnings Forecast for the Fiscal Year Ending March 2026” announced on November 12, 2025. [Notes] (1) Significant changes in the scope of consolidation during the period: None (2) Changes in accounting policies and changes in accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Changes in accounting policies due to reasons other than (i) above: None (iii) Changes in accounting estimates: None (3) Number of shares of common shares issued (a) Number of shares issued (including treasury shares) As of September 30, 2025: 176,418,500 shares As of March 31, 2025: 176,418,500 shares (b) Number of treasury shares As of September 30, 2025: 7,238,359 shares As of March 31, 2025: 8,375,061 shares (c) Average number of common shares during the period Six months ended September 30, 2025: 168,368,814 shares Six months ended September 30, 2024: 171,837,606 shares Notes: 1. Effective October 1, 2024, the Company conducted a 3-for-1 split of common shares. Accordingly, the number of issued shares (common shares) was calculated based on the assumption that the stock split had been conducted at the beginning of the fiscal year ended March 31, 2025. 2. As the Company has introduced a stock compensation plan which delivers shares with restrictions on transfer, the Company’s shares are included in the number of treasury shares at the end of the period mainly for the purpose of allotting them as restricted shares. 3. As the Company has introduced an Employee Stock Ownership Plan (J-ESOP) and a Board Benefit Trust-Restricted Stock (BBT-RS), the number of shares of the Company held by Custody Bank of Japan, Ltd., (Trust Account E) is included in the number of treasury shares at the end of the period. In addition, the number of shares of the Company held by Custody Bank of Japan, Ltd., (Trust Account E) was included in the number of treasury shares to be deducted in the calculation of the average number of shares outstanding during the period. * Semi-annual financial results reports are exempt from interim audit conducted by certified public accountants or an audit firm. * Proper use of earnings forecast, and other special notes (Business profit and EBITDA) Although business profit and EBITDA are not disclosures under IFRS, the Company believes that these disclosures provide useful information to investors. The details of business profit and EBITDA are as follows. Business profit: A profit indicator that measures the Company’s recurring operating results, which are determined by deducting cost of sales and selling, general and administrative expenses from net sales EBITDA: A profit indictor that is determined by adding back depreciation, which is recorded as cost of sales and selling, general and administrative expenses, to business profit (Method of obtaining supplementary materials on financial results) Supplementary materials on financial results will be posted on our website at https://www.dexerials.jp/en/ir/library/index.html. (Disclaimer with respect to earnings and other forecasts) The forward-looking statements including results forecasts contained in this document are based on information currently available to the Company and certain assumptions that the Company deems reasonable. Accordingly, the Company does not intend to promise their achievement. Actual results may differ from these forecasts and forward-looking statements due to various factors.
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- 1 - Contents for Attached Materials 1. Overview of Consolidated Financial Results …….……………….…………………………………………………………. 2 (1) Operating results ………………………………………………………………………………………………………… 2 (2) Financial position …………………………………………………………………….………………………………….. 2 (3) Forward-looking statements including consolidated earnings forecast …………………………………………….…… 3 2. Semi-annual consolidated Financial Statements and Notes ………………………………………………………………… 4 (1) Semi-annual consolidated statement of financial position ………………………………………………………………. 4 (2) Semi-annual consolidated statement of profit or loss and semi-annual consolidated statement of comprehensive income ..…………………………………………………………………………………………………………………. 6 (3) Semi-annual consolidated statement of changes in equity………………………………………………………….……. 8 (4) Semi-annual consolidated statement of cash flows …………………………………………………………….………... 10 (5) Notes to semi-annual consolidated financial statements…………………………………………………………….…... 11 (Going concern assumption) …………………………………………………………………………………………… 11 (Segment information) ………………………………………………………………………………………….……… 11 (Subsequent events) ………………………………………………………………………………………….………… 13
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- 2 - 1. Overview of Consolidated Financial Results (1) Operating results The Group’s operating results for the six months ended September 30, 2025 (hereinafter, the “period under review”) were as follows: Net sales were ¥57,456 million (down 3.7% year-on-year), business profit was ¥20,153 million (down 9.7% year-on-year), operating profit was ¥19,902 million (down 14.7% year-on-year), and profit attributable to owners of parent was ¥13,410 million (down 15.4% year-on-year). During the period under review, despite the appreciation of the yen, the Group achieved growth in sales of optical semiconductors and high-value-added products such as Anisotropic conductive films (ACF) for camera modules. On the other hand, in the same period of the previous fiscal year, sales included Phosphor films (which ended at the end of the previous semi-annual consolidated period) and a buildup of new deliveries of Anti-reflection films (ARF) for automotives. As a result, net sales declined year-on-year. In addition to the above factors, an increase in fixed costs due to growth investments—particularly in optical semiconductors—also contributed to the decline in profitability. Operating results by segment and sales by product category are presented as follows. a. Optical Materials and Components During the period under review, the Optical films product category saw steady performance in Anti-reflection films (ARF) for laptop PCs. However, net sales declined year-on-year due to the impact of sales in the previous period, which included Phosphor films and a buildup of new deliveries of ARF for automotives. The Optical resin materials product category, net sales decreased due to a decline in shipment volumes for certain models using Optical elastic resins (SVR). As a result, the business segment reported net sales of ¥25,351 million (down 13.2% year-on-year) and business profit of ¥8,047 million (down 19.4% year-on-year). b. Electronic Materials and Components During the period under review, the Anisotropic conductive films (ACF) product category reported a year-on-year decrease in sales. Although usage of Pre-cut ACF for camera modules increased, overall sales declined due to the impact of pull-forward demand in the fourth quarter of the previous fiscal year, driven by China’s consumer trade-in subsidy program for smartphones and other devices using display-related ACF. The Surface mount fuse product category reported a year-on-year increase in sales due to a recovery in production following the completion of inventory adjustments by a major customer for products for power tools in the previous fiscal year, in addition to continued sales of BBU (battery backup units) for data centers. The Photonics product category reported a year-on-year increase in sales due to an increase in the shipping quantity of high-speed response photodiodes for optical transceivers and monitor photodiodes for telecommunications equipment in optical semiconductors. As a result, the business segment reported net sales of ¥32,510 million (up 5.6% year-on-year) and business profit of ¥12,105 million (down 1.9% year-on-year). Note: Segment sales include inter-segment transactions. (2) Financial position (i) Summary of assets, liabilities and equity Total assets at the end of the period under review amounted to ¥158,783 million, an increase of ¥6,962 million from the end of the previous fiscal year, due to increases in property, plant and equipment, trade receivables and other receivables, which were partially offset by decreases in cash and cash equivalents and deferred tax assets. Total liabilities amounted to ¥55,560 million, a decrease of ¥344 million from the end of the previous fiscal year, due to decreases in income taxes payable and interest-bearing debt, despite increases in trade and other payables and other financial liabilities. Total equity amounted to ¥103,222 million, an increase of ¥7,307 million from the end of the previous fiscal year, due to an increase in retained earnings, despite a decrease in capital surplus.
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- 3 - (ii) Summary of Cash flow Cash flow from operating activities for the period under review resulted in an inflow of ¥10,853 million, a decrease of ¥8,85 7 million compared to the same period of the previous fiscal year. Profit before tax amounted to ¥19,794 million, and although income tax payments led to a decrease in cash flow, this was partially offset by non-cash items such as depreciation. Cash flow from investing activities resulted in an outflow of ¥15,345 million, an increase of ¥10,212 million compared to the same period of the previous fiscal year, due to expenditures such as the acquisition of property, plant and equipment. Cash flow from financing activities resulted in an outflow of ¥8,259 million, an increase of ¥2,887 million compared to the same period of the previous fiscal year, due to expenditures such as dividend payments. As a result of the above, cash and cash equivalents decreased by ¥12,602 million compared to the end of the previous fiscal y ear, amounting to ¥22,377 million at the end of the period under review. (3) Forward-looking statements including consolidated earnings forecast Revised Consolidated Earnings Forecast During the current consolidated semi-annual period, performance exceeded expectations due to the expansion of high value-added products such as Anti-reflection films (ARF), as well as the depreciation of the yen compared to the initial exchange rate assumptions. We have revised our exchange rate assumption for the second half of the fiscal year, setting the annual rate at ¥145.8/US$. Based on this situation, we have upwardly revised our full-year earnings forecast as stated below. Revised full-year consolidated earnings forecast for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026) Net sales Business profit Operating profit Profit before income tax Profit attributable to owners of parent Basic earnings per share Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Yen Previous forecast (A) 103,500 29,000 28,000 28,300 20,500 120.25 Revised forecast (B) 114,000 39,000 39,000 38,500 26,000 153.69 Amount changed (B-A) 10,500 10,000 11,000 10,200 5,500 33.44 Percent change (%) 10.1 34.5 39.3 36.0 26.8 27.8 (Reference) Results for the fiscal year ended March 31, 2025 110,390 38,068 39,735 39,359 27,737 162.04 Note: Effective October 1, 2024, the Company conducted a 3-for-1 split of common shares. Accordingly, basic earnings per share was calculated based on the assumption that the stock split had been conducted at the beginning of the fiscal year ended March 31, 2025.
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- 4 - 2. Semi-annual Consolidated Financial Statements and Notes (1) Semi-annual consolidated statement of financial position (Millions of yen) Previous fiscal year (As of March 31, 2025) Current semi-annual period (As of September 30, 2025) Assets Current assets Cash and cash equivalents 34,979 22,377 Trade and other receivables 17,979 23,831 Inventories 8,739 9,666 Other financial assets 126 68 Other current assets 1,733 1,111 Total current assets 63,559 57,055 Non-current assets Property, plant and equipment 49,703 64,077 Goodwill 21,288 21,288 Intangible assets 7,161 7,441 Investments accounted for using equity method 4,089 4,224 Other financial assets 761 650 Deferred tax assets 5,020 3,792 Other non-current assets 237 253 Total non-current assets 88,262 101,727 Total assets 151,821 158,783
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- 5 - (Millions of yen) Previous fiscal year (As of March 31, 2025) Current semi-annual period (As of September 30, 2025) Liabilities and equity Liabilities Current liabilities Trade and other payables 12,279 15,249 Interest-bearing liabilities 8,965 7,899 Employee benefits accruals 4,067 3,543 Income taxes payable 7,631 5,080 Other financial liabilities 4,191 5,796 Other current liabilities 2,135 2,072 Total current liabilities 39,270 39,642 Non-current liabilities Interest-bearing liabilities 12,113 11,357 Retirement benefit liability 3,791 3,840 Provisions 279 321 Deferred tax liabilities 392 373 Other non-current liabilities 57 26 Total non-current liabilities 16,634 15,918 Total liabilities 55,905 55,560 Equity Share capital 16,262 16,262 Capital surplus 19,526 18,576 Retained earnings 64,442 72,475 Treasury shares (4,727) (4,663) Other components of equity 412 571 Total equity attributable to owners of parent 95,915 103,222 Total equity 95,915 103,222 Total liabilities and equity 151,821 158,783
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- 6 - (2) Semi-annual consolidated statement of profit or loss and Semi-annual consolidated statement of comprehensive income Semi-annual consolidated statement of profit or loss (Millions of yen, except for per share data) Six months ended September 30, 2024 (from April 1, 2024 to September 30, 2024) Six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) Net sales 59,635 57,456 Cost of sales (25,335) (25,382) Gross profit 34,299 32,073 Selling, general and administrative expenses (11,979) (11,920) Other income 1,082 267 Other expenses (82) (517) Operating profit 23,319 19,902 Finance income 150 47 Finance costs (996) (194) Share of profit or loss of investments accounted for using equity method 59 38 Profit before tax 22,533 19,794 Income tax expense (6,676) (6,384) Profit 15,856 13,410 Profit attributable to: Owners of parent 15,856 13,410 Profit 15,856 13,410 Earnings per share Basic earnings per share (Yen) 92.27 79.65 Diluted earnings per share (Yen) 88.17 76.39
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- 7 - Semi-annual consolidated statement of comprehensive income (Millions of yen) Six months ended September 30, 2024 (from April 1, 2024 to September 30, 2024) Six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) Profit 15,856 13,410 Other comprehensive income, net of tax: Items that will not be reclassified to profit or loss: Remeasurements of defined benefit plans (182) (0) Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income (3) (1) Total of items that will not be reclassified to profit or loss (186) (1) Items that may be reclassified to profit or loss: Cash flow hedges 174 (38) Hedging costs 14 (5) Exchange differences on translation of foreign operations (1,060) 109 Share of other comprehensive income of investments accounted for using equity method (142) 95 Items that may be reclassified to profit or loss (1,014) 160 Total other comprehensive income (after tax effect) (1,200) 159 Comprehensive income 14,655 13,569 Comprehensive income attributable to: Owners of parent 14,655 13,569 Comprehensive income 14,655 13,569
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- 8 - (3) Semi-annual consolidated statement of changes in equity Six months ended September 30, 2024 (from April 1, 2024 to September 30, 2024) Equity attributable to owners of parent Total equity Other components of equity Total Hedging costs Exchange differences on translation of foreign operations Total Balance at April 1, 2024 (17) 1,555 1,478 85,122 85,122 Profit 15,856 15,856 Other comprehensive income 14 (1,203) (1,200) (1,200) (1,200) Total comprehensive income 14 (1,203) (1,200) 14,655 14,655 Issuance of new shares - 21 21 Purchase of treasury shares - (0) (0) Dividends of surplus - (3,716) (3,716) Share-based payment transactions - 1,508 1,508 Transfer from other components of equity to retained earnings 182 - - Total transactions with owners - - 182 (2,186) (2,186) Balance at September 30, 2024 (3) 352 460 97,591 97,591 (Millions of yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Net change in fair value of equity instruments designated as measured at fair value through other comprehen- sive income Remeasure- ments of defined benefit plans Cash flow hedges Balance at April 1, 2024 16,251 17,700 54,777 (5,085) - 0 (59) Profit 15,856 Other comprehensive income (3) (182) 174 Total comprehensive income - - 15,856 - (3) (182) 174 Issuance of new shares 10 10 Purchase of treasury shares (0) Dividends of surplus (3,716) Share-based payment transactions 737 770 Transfer from other components of equity to retained earnings (182) 182 Total transactions with owners 10 748 (3,898) 770 - 182 - Balance at September 30, 2024 16,262 18,449 66,735 (4,314) (3) 0 114
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- 9 - Six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) (Millions of yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Net change in fair value of equity instruments designated as measured at fair value through other comprehen- sive income Remeasure- ments of defined benefit plans Cash flow hedges Balance at April 1, 2025 16,262 19,526 64,442 (4,727) 6 0 12 Profit 13,410 Other comprehensive income (1) (0) (38) Total comprehensive income - - 13,410 - (1) (0) (38) Issuance of new shares Purchase of treasury shares (0) (992) Dividends of surplus (5,377) Share-based payment transactions (948) 1,056 Transfer from other components of equity to retained earnings (0) 0 Total transactions with owners - (949) (5,377) 64 - 0 - Balance at September 30, 2025 16,262 18,576 72,475 (4,663) 5 - (26) Equity attributable to owners of parent Total equity Other components of equity Total Hedging costs Exchange differences on translation of foreign operations Total Balance at April 1, 2025 (1) 394 412 95,915 95,915 Profit 13,410 13,410 Other comprehensive income (5) 205 159 159 159 Total comprehensive income (5) 205 159 13,569 13,569 Issuance of new shares - - - Purchase of treasury shares - (992) (992) Dividends of surplus - (5,377) (5,377) Share-based payment transactions - 107 107 Transfer from other components of equity to retained earnings 0 - - Total transactions with owners - - 0 (6,262) (6,262) Balance at September 30, 2025 (7) 599 571 103,222 103,222
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- 10 - (4) Semi-annual consolidated statement of cash flows (Millions of yen) Six months ended September 30, 2024 (from April 1, 2024 to September 30, 2024) Six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) Cash flows from operating activities Profit before taxes 22,533 19,794 Depreciation and amortization 3,274 3,604 Interest and dividend income (150) (47) Interest expenses 61 39 Foreign exchange loss (gain) 278 (110) Loss (gain) on sale of fixed assets (7) (221) Loss on retirement of fixed assets 31 316 Share-based payment expenses 742 657 Increase or decrease in retirement benefit asset or liability (577) 48 Decrease (increase) in trade and other receivables (2,190) (5,778) Decrease (increase) in inventories 1,460 (886) Increase (decrease) in trade and other payables (526) 2,806 Other (1,104) (1,607) Subtotal 23,824 18,615 Interest and dividends received 165 47 Interest paid (60) (89) Income taxes paid (4,218) (7,720) Net cash provided by (used in) operating activities 19,711 10,853 Cash flows from investing activities Purchase of investment securities (325) (25) Purchase of property, plant and equipment (2,723) (14,475) Purchase of intangible assets (1,197) (958) Proceeds from sale of property, plant and equipment 14 120 Payments for sale of shares of subsidiaries resulting in change in scope of consolidation (889) - Other (11) (6) Net cash provided by (used in) investing activities (5,133) (15,345) Cash flows from financing activities Repayments of long-term borrowings (1,348) (1,610) Purchase of treasury shares (0) (992) Dividends paid (3,716) (5,377) Repayments of lease liabilities (328) (278) Proceeds from exercise of employee share options 21 - Net cash provided by (used in) financing activities (5,372) (8,259) Effect of exchange rate change on cash and cash equivalents (638) 149 Net increase (decrease) in cash and cash equivalents 8,567 (12,602) Cash and cash equivalents at beginning of period 35,328 34,979 Net increase (decrease) in cash and cash equivalents transfer from assets held for sale 2,396 - Net increase (decrease) in cash and cash equivalents transfer to assets held for sale (3,985) - Cash and cash equivalents at end of period 42,307 22,377
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- 11 - (5) Notes to semi-annual consolidated financial statements (Going concern assumption) Not applicable. (Segment information) I Six months ended September 30, 2024 (from April 1, 2024 to September 30, 2024) Information on net sales and profit or loss by reportable segment (Millions of yen) Reportable Segments Adjustments Consolidated Optical Materials and Components Electronic Materials and Components Total Net sales Sales to external customers 28,903 30,731 59,635 - 59,635 Intersegment sales and transfers 293 53 347 (347) - Total 29,197 30,785 59,982 (347) 59,635 Business Profit (Note) 9,984 12,335 22,320 - 22,320 Other income 1,082 Other expenses (82) Operating profit 23,319 Finance income 150 Finance costs (996) Share of profit or loss of investments accounted for using equity method 59 Profit before tax 22,533 Other Items Depreciation and Amortization 1,668 1,606 3,274 - 3,274 (Note) Business profit is a profit indicator that measures the Group’s recurring operating results, which are determined by deducting cost of sales and selling, general and administrative expenses from net sales. Reference) Net sales by region Japan ¥15,855 million China ¥16,425 million South Korea ¥8,528 million Taiwan ¥11,063 million Other ¥7,761 million (Note) Sales in Japan include sales to customers based in Japan, even when the final destination of the products is overseas.
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- 12 - II Six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) Information on sales and profit or loss by reportable segment (Millions of yen) Reportable Segments Adjustments Consolidated Optical Materials and Components Electronic Materials and Components Total Net sales Sales to external customers 24,968 32,487 57,456 - 57,456 Intersegment sales and transfers 382 22 404 (404) - Total 25,351 32,510 57,861 (404) 57,456 Business Profit (Note) 8,047 12,105 20,153 - 20,153 Other income 267 Other expenses (517) Operating profit 19,902 Finance income 47 Finance costs (194) Share of profit or loss of investments accounted for using equity method 38 Profit before tax 19,794 Other Items Depreciation and Amortization 1,689 1,914 3,604 - 3,604 (Note) Business profit is a profit indicator that measures the Group’s recurring operating results, which are determined by deducting cost of sales and selling, general and administrative expenses from net sales. (Reference) Net sales by region Japan ¥30,255 million China ¥13,396 million South Korea ¥3,646 million Taiwan ¥6,082 million Other ¥4,075 million (Note) Sales in Japan include sales to customers based in Japan, even when the final destination of the products is overseas.
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- 13 - (Subsequent events) (Decision regarding details of repurchase and retirement of treasury shares) At the Board of Directors’ meeting held on November 12, 2025, the Company resolved matters pertaining the repurchase of its treasury shares pursuant to Article 459, paragraph 1 of the Companies Act of Japan and Article 35 of Dexerials’ Articles of Incorporation, and at the same time resolved matters pertaining the retirement of the treasury shares pursuant to Article 178 of the said Act. (1) Reasons for repurchase and retirement of treasury shares To improve capital efficiency and enhance shareholder returns as part of implementing capital policy according to the business environment, in consideration of factors such as opportunities for strategic investment and the Company’s financial condition. (2) Details of repurchase of treasury shares (i) Class of shares to be repurchased : Common stock of the Company (ii) Total number of shares to be repurchased : Up to 2,500,000 shares (1.42% of the total number of shares outstanding excluding treasury shares) (iii) Total amount of repurchase price : Up to ¥5,000 million (iv) Repurchase period : From November 13, 2025 to December 23, 2025 (v) Method of repurchase : Purchase from the open market on the Tokyo Stock Exchange (through discretionary trading by a securities company) (3) Details of retirement of treasury shares (i) Class of shares to be retired : Common stock of the Company (ii) Number of shares to be retired : All treasury shares to be repurchased through the transaction as described in item (2) above (iii) Scheduled date of retirement : January 16, 2026 (Reference) Holding status of treasury shares as of September 30, 2025 (i) Total number of shares outstanding (excluding treasury shares) : 175,564,205 shares (ii) Number of treasury shares : 854,295 shares Notes: The treasury shares as disclosed above do not include 6,384,064 shares of the Company held by a Board Benefit Trust-Restricted Stock (BBT-RS) for directors and other officers and an Employee Stock Ownership Plan (“J - ESOP”) for employees in Japan. Additionally, the Company has introduced a stock compensation plan, which delivers shares with restrictions on transfer, and the treasury shares as d isclosed above include 853,092 treasury shares held under the plan mainly for the purpose of allotting them as restricted shares. The Company continues to hold treasury shares held for the incentive plans for employees and officers because we believe that the plans contribute to the Company’s sustainable growth and corporate value enhancement.