Interim report
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Note : This document has been translated from a part of the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Company name : Summary of Consolidated Financial Results for the Three Months Ended June 30 , 2026 [ Japanese Standards ] ( Consolidated ) OKAMOTO INDUSTRIES , INC . August 7 , 2026 Stock exchange listing : Tokyo Stock code : 5122 URL https://www.okamoto-inc.jp/ Representative : Kunihiko Okamoto , President Inquiries : Hisao Hosoya , Executive Officer ( Accounting Dept. ) Scheduled date to commence dividend payments : Supplemental material on quarterly results : Presentation on quarterly results : No No ( Amounts less than one million yen are rounded down ) 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 ) Three months ended June 30 , 2026 Three months ended June 30 , 2025 ( Note ) Comprehensive income : Three months ended June 30 , 2026 : Three months ended June 30 , 2025 : Three months ended June 30 , 2026 Three months ended June 30 , 2025 ( 2 ) Consolidated financial position ( % represents changes over the same period in the previous fiscal year . ) Net sales Operating income Ordinary income Millions of yen % Millions of yen 28,923 26,929 7.4 3.3 1,549 814 % Millions of yen 90.3 % 2,534 100.4 A 67.9 1,264 Δ 64.8 271 million yen 679 million yen ▲ 60.0 % ▲ 85.1 % Net income per share Diluted net income per share yen 104.09 27.68 yen Profit attributable to owners of parent Millions of yen 1,775 478 % 270.9 Δ 78.3 As of June 30 , 2026 As of March 31 , 2026 ( Reference ) Own capital : 2.Dividends Total assets Net assets Equity ratio Millions of yen 162,042 164,167 109,166 million yen 110,514 million yen Millions of yen 109,289 110,631 % 67.4 67.3 As of June 30 , 2026 : As of March 31 , 2026 : FY Ended March 31 , 2026 FY Ended March 31 , 2027 FY Ended March 31 , 2027 ( forecast ) Cash dividends per share End of first quarter End of second quarter End of third quarter Year - end yen yen ( Note ) Revision of the latest dividend forecast announced : Yes yen 60.00 65.00 Total yen 60.00 yen 120.00 65.00 130.00 Regarding the revision to the dividend forecast , please refer to the " Notice Regarding Revisions to the Forecasts for the Six Months Ending March 31 , 2027 ( Interim ) and the Full Fiscal Year , as well as to the Dividend Forecast " which was disclosed today ( August 7 , 2026 ) . 3.Forecasts of consolidated financial results for the year ending March 31 , 2027 ( from April 1 , 2026 to March 31 , 2027 ) ( % represents changes over the previous fiscal year . ) Net sales Operating income Millions of yen % Six months ended 58,000 9.6 September 30 , 2026 Full year 115.000 6.4 Millions of yen 3,800 6,700 % Ordinary income Millions of yen % Profit attributable to owners of parent Millions of yen Net income per share % yen 51.8 4,900 44.8 3,000 54.3 175.89 Yes ( Note ) Revision of the latest consolidated results forecast announced : 334.19 Regarding the revision to the consolidated earnings forecast , please refer to the " Notice Regarding Revisions to the Forecasts for the Six Months Ending March 31 , 2027 ( Interim ) and the Full Fiscal Year , as well as to the Dividend Forecast " which was disclosed today ( August 7 , 2026 ) . 7.2 8,700 1.2 5,700 17.4
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*Notes (changes in status of specified subsidiaries accompanying changes in consolidated) Newly consolidated subsidiaries: Subsidiaries excluded: (2) Application of accounting methods for preparing quarterly consolidated financial statements: (3) Changes in accounting principles, changes in accounting estimates, and retrospective restatements ①Changes in accounting principles due to revisions to accounting standards: ②Changes other than ①: ③Changes in accounting estimates: ④Retrospective restatements: (4) Number of outstanding shares(common stock) ①Number of outstanding shares at period-end(including treasury stock) ②Number of treasury stocks at period-end ③Average number of shares during the period(cumulative total for quarterly period) ① ② ③ *The current quarterly financial results are not subject to quarterly review procedures by certified public accountant or by auditing firm. *Explanation relating to the appropriate use of forecasts of business results and other items of note. The forecasts included in this document are based on the currentry available information and certain assumptions that we believe reasonable. Actual results, etc. may differ from projections due to a variety of reasons. 17,292,043 17,699,367 610,464 No No No No No Three months ended June 30, 2025 17,699,367 715,237 17,056,160 Three months ended June 30, 2026 Three months ended June 30, 2026 Three months ended June 30, 2026 (1) Changes in status of significant subsidiaries during the three months ended June 30, 2026 FY Ended March 31, 2026 FY Ended March 31, 2026 No - -
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(Overview of Operating Results) During the first quarter consolidated accounting period under review, the Japanese economy continued on a moderate recovery trend, supported by improvements in the employment and income environment and steady corporate earnings. While corporate capital investment remained firm, worsening labor shortages and rising personnel expenses exerted downward pressure on business activities. In addition, higher prices further strengthened consumers’ inclination toward saving, resulting in continued weakness in personal consumption. Although the number of inbound visitors remained at a high level, growth in inbound demand showed signs of slowing due in part to instability in Japan –China relations. Overseas, uncertainties persisted due to heightened geopolitical risks, including escalating tensions in the Middle East, as well as the stagnation of the Chinese economy and developments in U.S. trade policies. Concerns continued regarding fluctuations in energy and raw material prices and potential impacts on logistics and supply chains, and the outlook remained uncertain. Under these business conditions, the Group prioritized the stable supply of products as a manufacturer and carried out business activities accordingly in each section. In the sales division, the Group worked to accurately grasp demand trends through close information sharing with customers, maintain a system capable of supplying required products in a timely manner, cultivate new business partners, and implement appropriate pricing measures reflecting market conditions. In the production and administrative divisions, the Group promoted productivity improvements and enhancements in manufacturing efficiency in response to soaring raw material prices, while also advancing the development of alternative materials to ensure stable production and strengthen profitability. As a result, net sales for the consolidated fiscal period amounted to ¥28,923 million (up 7.4% year on year). Operating profit was ¥1,549 million (up 90.3% year on year), ordinary profit was ¥2,534 million (up 100.4% year on year), and profit attributable to owners of parent was ¥ 1,775 million (up 270.9% year on year). The increase in profit was mainly attributable to higher sales driven by proactive order-taking, positive foreign exchange effects from yen depreciation, the impact of price revisions, and the stabilization of flame retardant (antimony) price hikes. (1) Industrial Products Sales of general-purpose films increased due to higher demand influenced by Middle East conditions and the implementation of price revisions. Sales of industrial films increased, supported mainly by steady demand related to semiconductors. Sales of construction-material films remained stable, resulting in sales comparable to the previous fiscal year, driven primarily by flooring applications. Sales of multi-layer films increased due to the early launch of new projects for industrial materials and the implementation of price revisions. Sales of wallpaper increased owing to higher demand prior to price revisions and the implementation of price revisions. Sales of agricultural films increased due to higher demand prior to price revisions. Sales of automotive interior materials decreased in China following changes in government subsidy policies; however, overall sales increased due to recovery in the U.S. and domestic markets. Sales of flexible containers increased due to overall market demand growth and the implementation of price revisions. Sales of adhesive tapes increased as orders rose in response to market-wide price revisions and demand influenced by Middle East conditions. Sales of industrial tapes decreased due to lower sales of tapes for eyeglasses. Among food sanitation products, sales of plastic wrap increased due to new customer acquisitions and the implementation of price revisions. Sales of disposable gloves for food use increased due to higher demand influenced by Middle East conditions. Sales of Pichit products, absorbent and dehydration sheets for food applications, increased due to new customer acquisitions and higher demand prior to price revisions. Sales of abrasive cloth and paper products increased as sales volumes rose. As a result, sales in this segment amounted to ¥20,808 million (up 10.4% year on year), while segment profit was ¥216 million (compared with a segment loss of ¥499 million in the same period of the previous fiscal year). (2) Consumer Products Sales of condoms decreased due to a decline in inbound demand. Overseas sales decreased in volume due to the slowdown in the Chinese economy, but increased in value due to foreign exchange effects. Sales of enemas decreased due to lower orders from major wholesalers. Sales of dehumidifiers decreased as demand failed to grow following the rainy season, during which temperatures did not rise sufficiently. Among glove products, sales of household gloves increased due to new customer acquisitions and higher demand for disposable types influenced by Middle East conditions. Sales of medical gloves increased due to demand growth influenced by Middle East conditions. Sales of industrial gloves remained at the same level as the previous fiscal year. Among medical products, sales of sterilizers decreased due to lower demand from dental clinics. Sales of boots decreased as a result of consolidating business partners and streamlining sales channels. Sales of shoes decreased as sneaker sales volumes declined and demand for leather business shoes continued to weaken. As a result, sales in this segment amounted to ¥8,050 million (up 0.6% year on year), while segment profit was ¥1,740 million (down 1.8% year on year). (3) Other The Other segment consists of the logistics outsourcing business and the solar power generation business. Net sales in this segment, including inter-segment internal sales and transfers, amounted to ¥994 million (up 14.6% year on year), while segment profit totaled ¥141 million (up 43.0% year on year).
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(millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits Notes receivable-trade Accounts receivable-trade Electronically recorded monetary claims-operating Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Intangible assets Investments and other assets Investment securities Deferred tax assets Other Total investments and other assets Total non-current assets Total assets Consolidated Quarterly Financial Statements and Notes Consolidated Quarterly Balance Sheets 10,472 10,936 3,402 3,572 17,607 18,877 4,582 5,002 34,272 30,947 380 266 8,658 9,722 2,584 2,597 △ 42 △ 51 81,918 81,871 25,048 25,539 2,265 2,169 354 351 54,426 51,961 154 149 54,935 52,462 82,249 80,170 164,167 162,042
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(millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable-trade Electronically recorded obligations-operating Short-term loans payable Income taxes payable Provision for bonuses Other Total current liabilities Non-current liabilities Long-term loans payable Deferred tax liabilities Net defined benefit liability Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury stock Total shareholders' equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets 3,118 3,112 895 258 1,076 538 21,514 21,243 2,604 2,381 4,464 6,032 13,352 12,749 5,784 5,777 626 560 33,672 33,566 100 100 13,047 13,047 1,269 1,269 19,863 19,186 53,536 52,752 60,799 61,529 △ 3,041 △ 3,629 31,273 29,585 9 4 72,055 72,216 117 122 110,631 109,289 164,167 162,042 38,458 36,949 6,326 6,563 848 795
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Three months ended June 30, 2026 (Millions of yen) June 30, 2025 June 30, 2026 Foreign exchange losses Freightage and packing expenses 841 905 Cost of sales 22,289 23,445 Gross profit 4,640 5,744 Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income Consolidated Quarterly Statements of Income Three months ended Three months ended Net sales 26,929 28,923 Selling, general and administrative expenses Retirement benefit expenses 30 18 Other selling expenses 800 724 Salaries and bonuses 859 870 Provision for bonuses 188 180 Other general and administrative expenses 1,104 1,227 Operating profit 814 1,549 Total selling, general and administrative expenses 3,825 3,927 Interest income 30 16 Dividends income 610 746 Non-operating income Other income 38 27 Real estate rent 164 161 Foreign exchange gains - 114 Interest expenses 12 14 Rent expenses on real estates 30 29 Total non-operating income 843 1,066 Non-operating expenses Other expenses 61 37 289 - Total non-operating expenses 393 82 Ordinary income 1,264 2,534 Extraordinary loss Loss on retirement of noncurrent assets 3 2 Impairment loss 166 196 Profit before income taxes 1,094 2,336 Income taxes-current 147 351 Total extraordinary loss 170 198 Income taxes-deferred 467 207 Profit (loss) attributable to non-controlling interests 0 1 Profit attributable to owners of parent 478 1,775 Total income taxes 614 559 Net income 479 1,776
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Three months ended June 30, 2026 (Millions of yen) June 30, 2025 June 30, 2026 Other comprehensive income Valuation difference on available-for-sale securities 1,730 △ 1,687 Consolidated Quarterly Statements of Comprehensive Income Three months ended Three months ended Net income 479 1,776 Remeasurements of defined benefit plans, net of tax △ 36 △ 52 Deferred gains or losses on hedges △ 3 △ 5 Foreign currency translation adjustment △ 1,490 240 Comprehensive income attributable to owners of the parent 683 266 Comprehensive income attributable to non-controlling interests △ 4 5 Comprehensive income 679 271 (comprehensive income attributable to) Total accumulated other comprehensive income 199 △ 1,505
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Information about net sales,profit or loss,assets,liabilities and other items by reportable segment (Millions of yen) Industrial Products Household Products Total Net sales Sales to external customers 18,854 8,004 26,858 70 26,929 - 26,929 Intersegment sales or transfers 22 160 183 797 981 △ 981 - Total 18,876 8,165 27,042 867 27,910 △ 981 26,929 Segment profit (loss) △ 499 1,772 1,272 99 1,371 △ 557 814 * The Other category is the business segment that is not included in the reportable segments, and include the group logistics business and solar power business. ** Adjustment is as follows: (1) The adjustment to segment profit represents positive 11 million yen in intersegment eliminations and negative 569 milion in the general corporate expenses. The general corporate expenses mainly include general and administrative expenses that are not attributable to the reportable segments. *** Segment profit is coordinated with the operating income in the consolidated statements. ※ In the Industrial Products business and the Household Products business segment, impairment loss on fixed assets was recorded at 166 million yen. The impairment loss was recorded at 163 million yen in the Industrial Products business and 3 million yen in the Household Products business for the first quarter of the fiscal year ending March 31, 2026. (Millions of yen) Industrial Products Household Products Total Net sales Sales to external customers 20,808 8,050 28,858 64 28,923 - 28,923 Intersegment sales or transfers 24 147 172 930 1,102 △ 1,102 - Total 20,833 8,198 29,031 994 30,026 △ 1,102 28,923 Segment profit (loss) 216 1,740 1,956 141 2,098 △ 548 1,549 * The Other category is the business segment that is not included in the reportable segments, and include the group logistics business and solar power business. ** Adjustment is as follows: (1) The adjustment to segment profit represents positive 14 million yen in intersegment eliminations and negative 562 milion in the general corporate expenses. The general corporate expenses mainly include general and administrative expenses that are not attributable to the reportable segments. *** Segment profit is coordinated with the operating income in the consolidated statements. ※ In the Industrial Products business and the Household Products business segment, impairment loss on fixed assets was recorded at 196 million yen. The impairment loss was recorded at 143 million yen in the Industrial Products business and 52 million yen in the Household Products business for the first quarter of the fiscal year ending March 31, 2027. (***)Amount recorded on the consolidated quarterly statements Three months ended June 30, 2026 Reportable segment (*)Other Total (**)Adjustment Three months ended June 30, 2025 Reportable segment (*)Other Total (**)Adjustment (***)Amount recorded on the consolidated quarterly statements