Interim report
Page 1
Sumitomo Osaka Cement Co., Ltd. Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2026 (JGAAP) (February 10, 2026) Company name Sumitomo Osaka Cement Co., Ltd. Stock Exchange Listing Tokyo Stock code 5232 URL https://www.soc.co.jp/ Representative (Job Title) Representative Director, President (Name) Hirotsune Morohashi Contact Manager (Job Title) General Manager, Corporate Planning Department (Name) Masahiko Ebisui (TEL) +81-3-6370- 2725 Scheduled date to commence dividend payments: – Availability of preparation of supplementary explanatory materials for financial results: Available Availability to hold financial briefings: None (Figures are rounded down to the nearest million yen) 1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2026 (From April 1, 2025 to December 31, 2025) (1) Consolidated Operating Results (Cumulative) (% indicates year-on-year change) Net sales Operating profit Ordinary profit Profit attributable to owners of the parent Nine months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % December 31, 2025 164,346 (1.1) 8,534 29.0 9,340 36.4 6,250 (6.4) December 31, 2024 166,167 (0.8) 6,614 38.4 6,848 15.7 6,675 (37.1) (Note) Comprehensive income Nine months ended December 31, 2025 8,467 million yen [118.3%] Nine months ended December 31, 2024 3,878 million yen [(60.3%)] Basic earnings per share Diluted earnings per share Nine months ended Yen Yen December 31, 2025 194.16 - December 31, 2024 199.74 - (2) Consolidated Financial Status Total assets Net assets Equity ratio Millions of yen Millions of yen % As of December 31, 2025 362,418 193,184 52.6 As of March 31, 2025 353,029 193,660 54.1 (Reference) Equity As of December 31, 2025 190,590 million yen As of March 31, 2025 191,097 million yen 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.
Page 2
2. Dividend Status Full-year dividend End of 1Q End of 2Q End of 3Q Year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 - 60.00 - 60.00 120.00 Fiscal year ending March 31, 2026 - 60.00 - Fiscal year ending March 31, 2026 (forecast) 60.00 120.00 (Note) Revision of dividend forecast from the most recently announced forecast: None 3. Consolidated Performance Forecasts for the Fiscal Year Ending March, 31 2026 (From April 1, 2025 to March 31, 2026) (% indicates year-on-year change) Net sales Operating profit Ordinary profit Profit attributable to owners of the parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 225,200 2.6 14,000 49.7 13,600 45.2 10,000 11.0 311.73 (Note) Revision from the most recently announced performance forecasts: None *Notes (1) Significant Changes in the Scope of Consolidation during the Period under Review: None (2) Application of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements: None (3) Changes in Accounting Policies, Changes in Accounting Estimation or Restatements (i) Changes in accounting policies due to the revision of accounting standards: None (ii) Changes in accounting policies other than (i): None (iii) Changes in accounting estimation: None (iv) Restatements: None (4) Numbers of Shares Issued (Common Shares) (i) Number of shares outstanding at the end of the period (including treasury shares) As of December 31, 2025 32,068,117 shares As of March 31, 2025 33,237,017 shares (ii) Number of treasury shares at the end of the period As of December 31, 2025 375,685 shares As of March 31, 2025 254,255 shares (iii) Average number of shares during the period (cumulative quarterly period) Nine months ended December 31, 2025 32,195,060 shares Nine months ended December 31, 2024 33,419,841 shares * Review of the accompanying quarterly consolidated financial statements by certified public accountants or an audit firm: None * Explanation for the appropriate use of performance forecasts and other special notes: The forward-looking statements contained in this report are based on information that is available to the Company at present. Therefore, there might be cases in which actual results differ materially from forecast values due to various factors. Please refer to “(3) Qualitative Information on Consolidated Performance Forecasts and Other Forward-Looking Statements” in “1. Qualitative Information on Quarterly Results” on page 3 of the attached materials for information on the above performance forecasts.
Page 3
―1― ○ Table of Contents of Appendix 1. Qualitative Information on Quarterly Results ........................................................................................................... 2 (1) Qualitative Information on Consolidated Operating Results ............................................................................ 2 (2) Qualitative Information on Consolidated Financial Status ............................................................................... 3 (3) Qualitative Information on Consolidated Performance Forecasts and Other Forward-Looking Statements .... 3 2. Quarterly Consolidated Financial Statements and Significant Notes Thereto .......................................................... 4 (1) Quarterly Consolidated Balance Sheet ........................................................................................................... 4 (2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ............................................................................................................................................................ 6 (3) Notes to Quarterly Consolidated Financial Statements ................................................................................... 8 (Notes to Going Concern Assumptions) .......................................................................................................... 8 (Notes in the Event of Significant Changes in Shareholders’ Equity) .............................................................. 8 (Segment Information, etc.) ............................................................................................................................. 8 (Notes on Quarterly Consolidated Statement of Cash Flows) ......................................................................... 9 3. Supplementary Information .................................................................................................................................... 10 (1) Consolidated Profit or Loss by Segment (YoY Comparison) ......................................................................... 10
Page 4
―2― 1. Qualitative Information on Quarterly Results (1) Qualitative Information on Consolidated Operating Results In the nine months ended December 31, 2025 (April 1, 2025 to December 31, 2025) (the “period under review”), the Japanese economy was affected by the U.S. trade policies; however, it continued to experience a moderate recovery, supported by improvements in employment and income conditions and the effects of economic measures, as well as a rebound in capital investment. In the cement industry, domestic demand for cement was 23,388 thousand tons, down 7.0% year on year, as both public and private sector demand decreased due to a chronic labor shortage, higher construction costs, the adoption of the five-day workweek under workstyle reform initiatives mainly in the greater Tokyo area, and over-time work regulations. On the other hand, exports grew by 5.8% year on year. As a result, the total sales volume of domestic manufacturers, including exports, decreased by 4.5% year on year to 29,966 thousand tons. Under these circumstances, based on the "FY2023–25 Medium-Term Management Plan," which ends in the current fiscal year, our group has been working on various measures such as “improving profitability of existing businesses” to recover the profitability of the cement business and to improve profitability by acquiring market shares in next-generation optical communication parts; “building a foundation for growth” to expand scale and enhance profitability by investing resources in the electronic materials business for semiconductor manufacturing equipment, expand overseas business (the Australian business), and develop new business in the decarbonization field; and “strengthening m anagement foundation” to develop strategies for human resources, research and development, intellectual property, and digital transformation (DX). As a result of the above, net sales for the period under review totaled 164,346 million yen, down 1,820 million yen year on year, and ordinary profit totaled 9,340 million yen, up 2,491 million yen year on year. Profit attributable to owners of the parent decreased by 424 million yen year on year to 6,250 million yen. An overview by business is as follows. 1 Cement The domestic sales volume was lower than the previous year, resulting in net sales of 117,756 million yen, a decrease of 873 million yen (0.7%) year on year. However, operating profit was 2,735 million yen, an increase of 2,284 million yen (506.3%) year on year mainly due to the domestic selling price being raised in response to a cost increase. 2 Mineral Resources Mainly due to a decrease in the sales volume of limestone for overseas and domestic steel markets, net sales were 13,140 million yen, a decrease of 120 million yen (0.9%) year on year. Operating profit was 2,221 million yen, a decrease of 283 million yen (11.3%) year on year. 3 Cement-Related Products Net sales decreased by 1,591 million yen (8.8%) year on year to 16,418 million yen mainly due to lower sales volume of concrete structure repair and reinforcement materials as well as a decrease in repair work. Operating profit was 836 million yen, a decrease of 324 million yen (27.9%) year on year. 4 Optoelectronics Net sales grew by 95 million yen ( 5.2%) year on year to 1, 936 million yen, mainly due to an increase in the sales volume of optoelectronic devices. An operating loss of 73 million yen was recorded, although this represented an improvement of 232 million yen year on year due to cost reductions in optical communication parts and other factors. 5 Advanced Materials Net sales grew by 954 million yen (8.2%) year on year to 12,560 million yen, mainly due to changes in the product mix of electronic materials for semiconductor manufacturing equipment. Operating profit grew by 109 million yen (6.7%) year on year to 1,760 million yen.
Page 5
―3― 6 Other Net sales decreased by 285 million yen (10.1%) year on year to 2,534 million yen due to decreased software sales, and operating profit decreased by 84 million yen (7.6%) year on year to 1,030 million yen. (2) Qualitative Information on Consolidated Financial Status Total assets at the end of the period under review were 362,418 million yen, up 9,388 million yen from the end of the previous fiscal year. The main changes were a 2,862 million yen increase in cash and deposits, a 2,825 million yen increase in electronically recorded monetary claims – operating, and a 2,924 million yen increase in investment securities. Total liabilities at the end of the period under review amounted to 169,234 million yen, up 9,864 million yen from the end of the previous fiscal year. The main changes were a 5,000 million yen increase in bonds payable (including current portion of bonds payable), a 2,340 million yen increase in long-term borrowings, and a 2,358 million yen increase in deferred tax liabilities. Net assets at the end of the period under review totaled 193,184 million yen, down 475 million yen from the end of the previous fiscal year. The main changes were a 2,159 million yen decrease in retained earnings, a 448 million yen increase due to the acquisition and cancellation of treasury shares (a decrease in net assets), and a 2,294 million yen increase in valuation difference on available-for-sale securities. (3) Qualitative Information on Consolidated Performance Forecasts and Other Forward-Looking Statements The consolidated performance forecast announced on November 11, 2025 remains unchanged.
Page 6
―4― 2. Quarterly Consolidated Financial Statements and Significant Notes Thereto (1) Quarterly Consolidated Balance Sheet (Millions of yen) As of March 31, 2025 As of December 31, 2025 Assets Current assets Cash and deposits 16,554 19,416 Notes and accounts receivable – trade, and contract assets 40,992 42,717 Electronically recorded monetary claims – operating 7,912 10,737 Merchandise and finished goods 11,241 11,799 Work in process 70 326 Raw materials and supplies 23,482 21,735 Short-term loans receivable 377 513 Other 3,553 3,381 Allowance for doubtful accounts (39) (8) Total current assets 104,143 110,620 Non-current assets Property, plant and equipment Buildings and structures 183,038 187,110 Accumulated depreciation (131,306) (133,662) Buildings and structures, net 51,731 53,447 Machinery and equipment 508,169 518,080 Accumulated depreciation (442,082) (452,247) Machinery and equipment, net 66,087 65,832 Land 39,067 39,121 Construction in progress 16,280 14,341 Other 40,472 41,028 Accumulated depreciation (21,849) (22,415) Other, net 18,623 18,612 Total property, plant and equipment 191,789 191,356 Intangible assets Goodwill 31 7 Other 3,435 3,168 Total intangible assets 3,467 3,176 Investments and other assets Investment securities 39,372 42,296 Long-term loans receivable 4,305 4,056 Deferred tax assets 1,014 997 Retirement benefit asset 4,171 4,342 Other 4,831 5,712 Allowance for doubtful accounts (66) (140) Total investments and other assets 53,629 57,265 Total non-current assets 248,886 251,798 Total assets 353,029 362,418
Page 7
―5― (Millions of yen) As of March 31, 2025 As of December 31, 2025 Liabilities Current Liabilities Notes and accounts payable - trade 28,266 27,532 Electronically recorded liabilities – operating 2,356 4,100 Short-term borrowings 18,822 19,020 Commercial papers 5,000 6,000 Current portion of long-term borrowings 8,648 9,430 Current portion of bonds payable - 5,000 Income taxes payable 1,685 1,720 Provision for bonuses 2,688 1,299 Other 16,275 14,849 Total current liabilities 83,742 88,952 Non-current liabilities Bonds payable 25,000 25,000 Long-term borrowings 25,863 28,203 Deferred tax liabilities 9,558 11,917 Provision for retirement benefits for directors (and other officers) 125 130 Provision for PCB waste disposal costs 1 0 Retirement benefit liability 1,013 1,008 Provision for share awards 127 110 Asset retirement obligations 263 268 Other 13,672 13,642 Total non-current liabilities 75,626 80,281 Total liabilities 159,369 169,234 Net assets Shareholders’ equity Share capital 41,654 41,654 Capital surplus 10,466 10,466 Retained earnings 119,737 117,577 Treasury shares (992) (1,441) Total shareholders’ equity 170,865 168,257 Accumulated other comprehensive income Valuation difference on available-for-sale securities 18,394 20,688 Foreign currency translation adjustment 451 335 Remeasurements of defined benefit plans 1,385 1,308 Total other accumulated comprehensive income 20,231 22,333 Non-controlling interests 2,562 2,594 Total net assets 193,660 193,184 Total liabilities and net assets 353,029 362,418
Page 8
―6― (2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income Quarterly Consolidated Statement of Income Nine months ended December 31, 2024 and 2025 (Millions of yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Net sales 166,167 164,346 Cost of sales 129,090 123,854 Gross profit 37,076 40,492 Selling, general and administrative expenses 30,461 31,957 Operating profit 6,614 8,534 Non-operating income Interest income 101 89 Dividend income 1,188 967 Foreign exchange gains - 227 Share of profit of entities accounted for using the equity method - 171 Rental income 139 111 Other 396 739 Total non-operating income 1,826 2,307 Non-operating expenses Interest expenses 740 913 Foreign exchange losses 205 - Share of loss of entities accounted for using the equity method 96 - Other 550 589 Total non-operating expenses 1,592 1,502 Ordinary profit 6,848 9,340 Extraordinary income Gain on sale of non-current assets 69 440 Gain on sale of investment securities 3,059 3,611 Total extraordinary income 3,128 4,052 Extraordinary losses Loss on retirement of non-current assets 344 541 Loss on sale of non-current assets 2 1 Impairment losses 14 2,905 Total extraordinary losses 362 3,449 Profit before income taxes 9,615 9,943 Income taxes – current 1,784 2,218 Income taxes – deferred 987 1,359 Total income taxes 2,771 3,578 Profit 6,843 6,365 Profit attributable to non-controlling interests 167 114 Profit attributable to owners of the parent 6,675 6,250
Page 9
―7― Quarterly Consolidated Statement of Comprehensive Income Nine months ended December 31, 2024 and 2025 (Millions of yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Profit 6,843 6,365 Other comprehensive income Valuation difference on available-for-sale securities (2,923) 2,290 Foreign currency translation adjustment 38 (109) Remeasurements of defined benefit plans (98) (76) Share of other comprehensive income of entities accounted for using the equity method 18 (2) Total other comprehensive income (2,964) 2,102 Comprehensive income 3,878 8,467 Comprehensive income attributable to: Owners of the parent 3,710 8,352 Non-controlling interests 167 115
Page 10
―8― (3) Notes to Quarterly Consolidated Financial Statements (Notes to Going Concern Assumptions) Not applicable. (Notes in the Event of Significant Changes in Shareholders’ Equity) Treasury shares increased by 5,013 million yen (decrease in shareholders’ equity) during the period under review, mainly due to the acquisition of treasury shares in accordance with the resolution of the Board of Directors meeting held on May 13, 2025. Retained earnings decreased by 4,521 million yen and treasury shares decreased by 4,521 million yen (increase in shareholders’ equity) during the period under review, due to the cancellation of treasury shares in accordance with the resolution of the Board of Directors meeting held on December 19, 2025. Retained earnings amounted to 117,577 million yen and treasury shares amounted to 1,441 million yen at the end of the period under review. (Segment Information, etc.) I Nine months ended December 31, 2024 (April 1, 2024 to December 31, 2024) Information on Net Sales and Profit or Loss by Reportable Segment (Millions of yen) Reportable segments Note 1 Note 2 Cement Mineral Resources Cement- Related Products Opto- electronics Advanced Materials Other Total Adjustment Amount recorded in quarterly consolidated statement of income Net sales (1) Net sales to external customers 118,629 13,261 18,009 1,840 11,606 2,819 166,167 - 166,167 (2) Intersegment sales and transfer 2,836 2,204 1,976 - - 3,328 10,346 (10,346) - Total 121,465 15,465 19,986 1,840 11,606 6,148 176,513 (10,346) 166,167 Segment profit (loss) 451 2,504 1,160 (306) 1,650 1,115 6,575 38 6,614 (Notes) 1. “Adjustment” of segment profit (loss) of 38 million yen represents the elimination of intersegment transactions. 2. Segment profit (loss) is adjusted with operating profit of the quarterly consolidated statement of income. II Nine months ended December 31, 2025 (April 1, 2025 to December 31, 2025) 1. Information on Net Sales and Profit or Loss by Reportable Segment (Millions of yen) Reportable segments Note 1 Note 2 Cement Mineral Resources Cement- Related Products Opto- electronics Advanced Materials Other Total Adjustment Amount recorded in quarterly consolidated statement of income Net sales (1) Net sales to external customers 117,756 13,140 16,418 1,936 12,560 2,534 164,346 - 164,346 (2) Intersegment net sales and transfer 2,687 2,577 1,573 - - 3,829 10,667 (10,667) - Total 120,444 15,718 17,992 1,936 12,560 6,363 175,014 (10,667) 164,346 Segment profit (loss) 2,735 2,221 836 (73) 1,760 1,030 8,510 24 8,534 (Notes) 1. “Adjustment” of segment profit (loss) of 24 million yen represents the elimination of intersegment transactions. 2. Segment profit (loss) is adjusted with operating profit of the quarterly consolidated statement of income.
Page 11
―9― 2. Information on Impairment Losses on Non-current Assets or Goodwill, etc. by Reportable Segment (Significant impairment losses on non-current assets) In the nine months ended December 31, 2025, impairment losses totaling 2,905 million yen were recorded in the Cement business. (Notes on Quarterly Consolidated Statement of Cash Flows) Quarterly consolidated statements of cash flows have not been prepared for the period under review. Depreciation (including amortization expenses of intangible assets excluding goodwill) and amortization of goodwill for the nine month- periods are as follows. Nine months ended December 31, 2024 Nine months ended December 31, 2025 Depreciation 16,530 million yen 17,278 million yen Amortization of goodwill 23 million yen 23 million yen
Page 12
―10― 3. Supplementary Information (1) Consolidated Profit or Loss by Segment (YoY Comparison) (Millions of yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 YoY change Amount % Cement 118,629 117,756 (873) (0.7) Mineral Resources 13,261 13,140 (120) (0.9) Cement-Related Products 18,009 16,418 (1,591) (8.8) Optoelectronics 1,840 1,936 95 5.2 Advanced Materials 11,606 12,560 954 8.2 Other 2,819 2,534 (285) (10.1) Net sales for external customers 166,167 164,346 (1,820) (1.1) Cement 451 2,735 2,284 506.3 Mineral Resources 2,504 2,221 (283) (11.3) Cement-Related Products 1,160 836 (324) (27.9) Optoelectronics (306) (73) 232 - Advanced Materials 1,650 1,760 109 6.7 Other 1,115 1,030 (84) (7.6) Adjustment amount 38 24 (14) (38.0) Operating profit 6,614 8,534 1,920 29.0 Non-operating income 1,826 2,307 481 26.3 Non-operating expenses 1,592 1,502 (90) (5.7) Non-operating income (expenses), net 233 805 571 244.4 Ordinary profit 6,848 9,340 2,491 36.4 Extraordinary income 3,128 4,052 923 29.5 Extraordinary losses 362 3,449 3,086 851.4 Extraordinary income (losses), net 2,766 603 (2,163) (78.2) Profit attributable to owners of the parent 6,675 6,250 (424) (6.4)