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 Three Months Ended June 30, 2026 [Under IFRS] August 4, 2026 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 commence dividend payments: - 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 three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) (1) Consolidated operating results (cumulative) (Percentage indicates year-on-year changes.) Net sales Business profit EBITDA Operating profit Profit before tax Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, 2026 27,182 4.0 8,275 4.8 10,212 5.6 8,588 7.5 8,705 12.9 June 30, 2025 26,140 (3.8) 7,899 (17.7) 9,667 (13.7) 7,985 (18.3) 7,709 (19.2) Profit Profit attributable to owners of parent Total comprehensive income Basic earnings per share Diluted earnings per share Three months ended Millions of yen % Millions of yen % Millions of yen % Yen Yen June 30, 2026 6,241 12.1 6,241 12.1 6,527 17.5 37.25 35.89 June 30, 2025 5,565 (16.8) 5,565 (16.8) 5,555 (23.4) 33.14 31.70 Notes: For details of business profit and EBITDA, please refer to “* Proper use of earnings forecast, and other special notes, (Business profit and EBITDA).” (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 June 30, 2026 177,090 111,430 111,430 62.9 665.12 March 31, 2026 165,104 109,363 109,363 66.2 652.87 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, 2026 - 29.00 - 29.00 58.00 Fiscal year ending March 31, 2027 - Fiscal year ending March 31, 2027 (forecast) 32.00 - 32.00 64.00 Notes: Revisions to dividend forecast published most recently: None
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- 2 - 3. Forecast of consolidated financial results for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (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 123,000 8.1 40,000 1.6 38,500 1.1 38,500 0.3 27,500 (1.8) 163.45 Notes: Revisions to earnings forecast published most recently: None [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 June 30, 2026: 174,741,400 shares As of March 31, 2026: 174,741,400 shares (b) Number of treasury shares As of June 30, 2026: 7,208,459 shares As of March 31, 2026: 7,231,259 shares (c) Average number of common shares during the period Three months ended June 30, 2026: 167,526,055 shares Three months ended June 30, 2025: 167,917,593 shares Notes: 1. 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. 2. 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. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary). * Proper use of earnings forecasts, 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 indicator 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 …………………………………………….…… 2 2. Quarterly consolidated Financial Statements and Notes ……………………………………………………………………. 3 (1) Quarterly consolidated statement of financial position …………………………………………………………………. 3 (2) Quarterly consolidated statement of profit or loss and quarterly consolidated statement of comprehensive income ..…………………………………………………………………………………………………………………. 5 (3) Notes to quarterly consolidated financial statements…………………………………………………………….………. 7 (Going concern assumption) …………………………………………………………………………………………… 7 (Quarterly consolidated statement of cash flows) ……………………………………………………………………… 7 (Significant changes in the amount of equity attributable to owners of parent) …………………………………….…. 7 (Segment information) ………………………………………………………………………………………….……… 8
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- 2 - 1. Overview of Consolidated Financial Results (1) Operating results The Group’s operating results for the three months ended June 30, 2026 (hereinafter, the “period under review”) were as follows: Net sales were ¥27,182 million (up 4.0% year-on-year), business profit was ¥8,275 million (up 4.8% year-on-year), operating profit was ¥8,588 million (up 7.5% year-on-year) and profit attributable to owners of parent was ¥6,241 million (up 12.1% year-on-year). During the period under review, Anti-reflection Film (ARF) for laptop PC display was affected by a reactionary decline following replacement demand in the first half of the previous fiscal year. ARF for automotive display was also affected by lower customer sales volumes amid intensifying competition in the Chinese automotive market. On the other hand, the yen depreciated against the same period of the previous fiscal year. In addition, optical semiconductors saw higher shipment volumes of products used in optical transceivers for data centers. Smart precision Adhesives and Anisotropic Conductive Film (ACF) also saw increased production volumes of adopted models for camera modules used in high-end smartphones. The performance of each segment is as follows. a. Optical Materials and Components During the period under review, Smart precision Adhesives remained firm, reflecting increased production volumes of high-end smartphones. On the other hand, Anti-reflection Film (ARF) for both laptop PC display and automotive display was affected by lower sales volumes of end products. As a result, the segment reported net sales of ¥10,329 million (down 13.4% year-on-year) and business profit of ¥2,713 million (down 18.5% year-on-year). b. Electronic Materials and Components During the period under review, the Company commenced new production of optical semiconductors at its plant in Tome City, Miyagi Prefecture, amid expanding demand for products used in optical transceivers for data centers . In addition, the Pre -cut Anisotropic Conductive Film (ACF) for camera modules remained firm due to increased production volumes of high-end smartphones. As a result, the segment reported net sales of ¥17,080 million (up 18.7% year-on-year) and business profit of ¥5,561 million (up 21.7% year-on-year). Note: Segment sales include inter-segment transactions. (2) Financial position Total assets at the end of the period under review amounted to ¥ 177,090 million, an increase of ¥ 11,986 million from the end of the previous fiscal year, due to increases in property, plant and equipment and other current assets, despite decreases in cash and cash equivalents and trade and other receivables. Total liabilities amounted to ¥65,660 million, an increase of ¥9,919 million from the end of the previous fiscal year, due to increases in other financial liabilities and non-current interest-bearing liabilities, despite decreases in income taxes payable and employee benefits. Total equity amounted to ¥111,430 million, an increase of ¥2,066 million from the end of the previous fiscal year, due to increases in retained earnings and capital surplus. (3) Forward-looking statements including consolidated earnings forecast The full-year earnings forecast for the fiscal year ending March 31, 2027 remains unchanged from that announced in the “Consolidated Financial Results for the Fiscal Year Ended March 31, 2026” disclosed on May 13, 2026.
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- 3 - 2. Quarterly Consolidated Financial Statements and Notes (1) Quarterly consolidated statement of financial position (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and cash equivalents 16,655 15,189 Trade and other receivables 21,171 20,490 Inventories 10,672 10,964 Other financial assets 17 15 Other current assets 984 4,127 Total current assets 49,500 50,787 Non-current assets Property, plant and equipment 76,858 87,278 Goodwill 21,288 21,288 Intangible assets 7,497 7,556 Investments accounted for using equity method 4,702 4,949 Other financial assets 599 1,144 Deferred tax assets 4,433 3,866 Other non-current assets 223 218 Total non-current assets 115,603 126,302 Total assets 165,104 177,090
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- 4 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 12,710 12,352 Interest-bearing liabilities 3,176 3,759 Employee benefits accruals 4,473 2,798 Income taxes payable 3,879 1,672 Other financial liabilities 12,011 22,158 Other current liabilities 1,574 1,900 Total current liabilities 37,825 44,641 Non-current liabilities Interest-bearing liabilities 13,330 16,543 Retirement benefit liability 3,721 3,637 Provisions 458 450 Deferred tax liabilities 387 366 Other non-current liabilities 17 21 Total non-current liabilities 17,914 21,018 Total liabilities 55,740 65,660 Equity Share capital 16,262 16,262 Capital surplus 19,331 19,720 Retained earnings 77,667 79,051 Treasury shares (5,110) (5,102) Other components of equity 1,212 1,498 Total equity attributable to owners of parent 109,363 111,430 Total equity 109,363 111,430 Total liabilities and equity 165,104 177,090
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- 5 - (2) Quarterly consolidated statement of profit or loss and quarterly consolidated statement of comprehensive income Quarterly consolidated statement of profit or loss (Millions of yen, except for per share data) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 26,140 27,182 Cost of sales (12,367) (12,093) Gross profit 13,772 15,089 Selling, general and administrative expenses (5,873) (6,814) Other income 131 605 Other expenses (46) (292) Operating profit 7,985 8,588 Finance income 8 23 Finance costs (169) (91) Share of profit or loss of investments accounted for using equity method (114) 184 Profit before tax 7,709 8,705 Income tax expense (2,144) (2,463) Profit 5,565 6,241 Profit attributable to: Owners of parent 5,565 6,241 Profit 5,565 6,241 Earnings per share Basic earnings per share (Yen) 33.14 37.25 Diluted earnings per share (Yen) 31.70 35.89
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- 6 - Quarterly consolidated statement of comprehensive income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 5,565 6,241 Other comprehensive income, net of tax: Items that will not be reclassified to profit or loss: Remeasurements of defined benefit plans (0) － Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income 2 (7) Total of items that will not be reclassified to profit or loss 2 (7) Items that may be reclassified to profit or loss: Cash flow hedges 5 (51) Hedging costs 25 (21) Exchange differences on translation of foreign operations (117) 154 Share of other comprehensive income of investments accounted for using equity method 73 211 Items that may be reclassified to profit or loss (11) 293 Total other comprehensive income (after tax effect) (9) 286 Comprehensive income 5,555 6,527 Comprehensive income attributable to: Owners of parent 5,555 6,527 Comprehensive income 5,555 6,527
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- 7 - (3) Notes to quarterly consolidated financial statements (Going concern assumption) Not applicable. (Quarterly consolidated statements of cash flows) While quarterly consolidated statement of cash flows for the three months ended June 30, 2026 is not prepared, depreciation and amortization for the three months ended June 30, 2025 and 2026 is as follows. (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation and amortization 1,782 2,061 (Significant changes in the amount of equity attributable to owners of parent) Not applicable.
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- 8 - (Segment information) I Three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) 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 11,758 14,381 26,140 － 26,140 Intersegment sales and transfers 174 8 183 (183) － Total 11,933 14,390 26,324 (183) 26,140 Business Profit (Note) 3,329 4,570 7,899 － 7,899 Other income 131 Other expenses (46) Operating profit 7,985 Finance income 8 Finance costs (169) Share of profit or loss of investments accounted for using equity method (114) Profit before tax 7,709 (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 ¥13,505 million China ¥6,429 million South Korea ¥1,804 million Taiwan ¥2,335 million Other ¥2,065 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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- 9 - II Three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) 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 10,112 17,070 27,182 － 27,182 Intersegment sales and transfers 217 9 226 (226) － Total 10,329 17,080 27,409 (226) 27,182 Business Profit (Note) 2,713 5,561 8,275 － 8,275 Other income 605 Other expenses (292) Operating profit 8,588 Finance income 23 Finance costs (91) Share of profit or loss of investments accounted for using equity method 184 Profit before tax 8,705 (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 ¥13,053 million China ¥6,699 million South Korea ¥1,582 million Taiwan ¥3,432 million Other ¥2,414 million (Note) Sales in Japan include sales to customers based in Japan, even when the final destination of the products is overseas.