Interim report
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Sumitomo Osaka Cement Co., Ltd. Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 (JGAAP) August 4, 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 supplementary explanatory materials for financial results: Available Availability of financial briefings: None (Figures are rounded down to the nearest million yen) 1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 (From April 1, 2026, to June 30, 2026) (1) Consolidated Operating Results (Cumulative) (% indicates year-on-year change) Net sales Operating profit Ordinary profit Profit attributable to owners of the parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, 2026 56,061 8.8 3,463 99.1 3,590 87.0 2,196 48.3 June 30, 2025 51,536 (3.2) 1,740 37.7 1,920 (3.2) 1,480 115.8 (Note) Comprehensive income Three months ended June 30, 2026 1,656 million yen [(49.0)%] Three months ended June 30, 2025 3,246 million yen [187.0%] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30, 2026 69.28 – June 30, 2025 45.14 – (2) Consolidated Financial Status Total assets Net assets Equity ratio Millions of yen Millions of yen % As of June 30, 2026 361,388 197,685 54.0 As of March 31, 2026 361,980 197,948 54.0 (Reference) Equity As of June 30, 2026 195,042 million yen As of March 31, 2026 195,306 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.
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2. Dividend Status Annual dividends End of 1Q End of 2Q End of 3Q Year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 – 60.00 – 60.00 120.00 Fiscal year ending March 31, 2027 – Fiscal year ending March 31, 2027 (forecast) 60.00 – 20.00 – (Notes) 1. Revision of dividend forecast from the most recently announced forecast: Yes 2. The Company plans to implement a three-for-one stock split of its common shares with an effective date of October 1, 2026. The forecast year-end dividend per share for the fiscal year ending March 31, 2027 reflects the effect of the stock split. The total annual dividend per share is not presented because a simple comparison is not possible due to the stock split. Without taking the stock split into account, the year-end dividend is 60.00 yen and the total annual dividend is 120.00 yen. 3. Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2027 (From April 1, 2026, to March 31, 2027) (% 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 First half 111,000 4.9 4,500 9.2 4,300 1.6 3,100 (44.6) 97.81 Full year 234,500 4.8 15,000 9.9 14,500 0.7 10,000 (10.8) 105.18 (Notes) 1. Revision from the most recently announced performance forecast: None 2. The Company plans to implement a three-for-one stock split of its common shares with an effective date of October 1, 2026. The full-year basic earnings per share in the consolidated performance forecast for the fiscal year ending March 31, 2027 reflects the effect of the stock split. Without taking the stock split into account, the full-year basic earnings per share in the consolidated performance forecast for the fiscal year ending March 31, 2027 is 315.54 yen.
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* 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 June 30, 2026 32,068,117 shares As of March 31, 2026 32,068,117 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 361,745 shares As of March 31, 2026 376,852 shares (iii) Average number of shares during the period (cumulative quarterly period) Three months ended June 30, 2026 31,699,016 shares Three months ended June 30, 2025 32,801,266 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 earnings forecasts.
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–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 (Significant Subsequent Events) ............................................................................................................................... 10 3. Supplementary Information ......................................................................................................................................... 12 (1) Consolidated Net Sales and Profit or Loss by Segment (YoY Comparison)............................................................. 12
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–2– 1. Qualitative Information on Quarterly Results (1) Qualitative Information on Consolidated Operating Results In the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) (the “period under review”), the Japanese economy continued to experience a moderate recovery, supported by improvements in employment and income conditions and the effects of economic policies, although the impact of rising prices was observed. On the other hand, the impact of the situation in the Middle East required monitoring. In the cement industry, domestic demand for cement was 7,214 thousand tons, down 5.6% year on year, as both public and private sector demand decreased due to factors such as the chronic labor shortage, the further spread of the five-day workweek under workstyle reform initiatives, and over-time work regulations, all of which continued from the previous fiscal year. On the other hand, exports grew by 3.9% year on year. As a result, the total sales volume of domestic manufacturers, including exports, decreased by 3.4% year on year to 9,468 thousand tons. Under these circumstances, our group formulated the “FY2026–28 Medium-Term Management Plan” as the second step toward achieving SOC Vision2035, our vision for what we aim to be in 2035, with the main theme of promoting the transformation of our business portfolio. In this medium-term management plan, we will work to achieve early results from the initiatives carried over from the previous medium-term management plan, while stabilizing earnings from our existing businesses centered on the cement business, expanding our high-performance products business, a growth area, and launching new businesses, including CO₂ resource utilization (artificial limestone and other products). As a result of the above, net sales for the period under review totaled 56,061 million yen, up 4,525 million yen year on year, and ordinary profit totaled 3,590 million yen, up 1,670 million yen year on year. Profit attributable to owners of the parent increased by 715 million yen year on year to 2,196 million yen. An overview by business is as follows. As part of its efforts to further strengthen its organizational structure toward achieving the business portfolio transformation outlined in its medium- to long-term vision, "SOC Vision2035," the Company integrated the Optoelectronics Business Division and the Advanced Materials Business Division and newly established the High- Performance Products Business Division, effective April 1, 2026. Following this organizational restructuring, beginning with the period under review, the Company has changed the classification of its reportable segments by integrating the "Optoelectronics" and "Advanced Materials" segments into the "High-Performance Products" segment. The year-on-year comparisons below are based on figures reclassified in accordance with the revised reportable segment classification. 1 Cement Although the domestic sales volume was lower than the previous year, net sales were 39,462 million yen, an increase of 2,827 million yen (7.7%) year on year, mainly due to the effect of the selling price increase implemented in the previous fiscal year. Operating profit was 1,573 million yen, representing an improvement of 1,642 million yen year on year. 2 Mineral Resources Mainly due to product price revisions, net sales were 4,576 million yen, an increase of 454 million yen (11.0%) year on year. Operating profit was 759 million yen, an increase of 207 million yen (37.5%) year on year. 3 Cement-Related Products Net sales increased by 200 million yen (4.3%) year on year to 4,853 million yen mainly due to an increase in the sales volume of precast concrete products. We posted an operating loss of 22 million yen, although this represented an improvement of 36 million yen year on year.
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–3– 4 High-Performance Products Net sales increased by 967 million yen (18.5%) year on year to 6,192 million yen, mainly due to an increase in the sales volume of electronic materials for semiconductor manufacturing equipment. However, operating profit decreased by 151 million yen (17.0%) year on year to 740 million yen, mainly due to an increase in manufacturing costs. 5 Other Net sales increased by 75 million yen (8.3%) year on year to 976 million yen, mainly due to an increase in software sales. However, operating profit decreased by 26 million yen (6.5%) year on year to 374 million yen, mainly due to an increase in costs. (2) Qualitative Information on Consolidated Financial Status Total assets at the end of the period under review were 361,388 million yen, down 591 million yen from the end of the previous fiscal year. The main changes were a 1,892 million yen decrease in cash and deposits, a 2,025 million yen increase in electronically recorded monetary claims – operating, and a 782 million yen decrease in investment securities. Total liabilities at the end of the period under review amounted to 163,703 million yen, down 328 million yen from the end of the previous fiscal year. The main change was a 2,000 million yen decrease in commercial papers, a 2,826 million yen decrease in income taxes payable, a 5,000 million yen increase in bonds payable (including the current portion of bonds payable), and a 1,508 million yen decrease in long-term borrowings. Net assets at the end of the period under review totaled 197,685 million yen, down 263 million yen from the end of the previous fiscal year. The main changes were a 290 million yen increase in retained earnings and a 632 million yen decrease 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 May 13, 2026 remains unchanged.
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–4– 2. Quarterly Consolidated Financial Statements and Significant Notes Thereto (1) Quarterly Consolidated Balance Sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 16,633 14,741 Notes and accounts receivable – trade, and contract assets 42,120 41,662 Electronically recorded monetary claims – operating 8,968 10,994 Merchandise and finished goods 10,940 11,877 Work in process 66 163 Raw materials and supplies 22,018 21,886 Short-term loans receivable 518 566 Other 2,422 2,057 Allowance for doubtful accounts (33) (39) Total current assets 103,655 103,910 Non-current assets Property, plant and equipment Buildings and structures 190,467 202,321 Accumulated depreciation (134,443) (135,387) Buildings and structures, net 56,024 66,933 Machinery and equipment 520,903 523,869 Accumulated depreciation (456,604) (459,742) Machinery and equipment, net 64,299 64,126 Land 39,121 39,121 Construction in progress 16,483 4,354 Other 41,026 41,342 Accumulated depreciation (22,550) (22,775) Other, net 18,476 18,566 Total property, plant and equipment 194,404 193,102 Intangible assets 3,448 4,834 Investments and other assets Investment securities 43,731 42,948 Long-term loans receivable 4,043 4,045 Deferred tax assets 1,000 1,054 Retirement benefit asset 5,815 5,792 Other 6,022 5,840 Allowance for doubtful accounts (140) (140) Total investments and other assets 60,472 59,540 Total non-current assets 258,324 257,477 Total assets 361,980 361,388
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–5– (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable – trade 27,590 29,617 Electronically recorded liabilities – operating 2,378 3,434 Short-term borrowings 17,809 18,129 Commercial papers 2,000 － Current portion of long-term borrowings 9,672 9,527 Current portion of bonds payable 5,000 5,000 Income taxes payable 4,062 1,236 Provision for bonuses 2,823 1,685 Other 15,013 13,595 Total current liabilities 86,350 82,227 Non-current liabilities Bonds payable 25,000 30,000 Long-term borrowings 26,940 25,431 Deferred tax liabilities 10,383 10,691 Provision for retirement benefits for directors (and other officers) 125 109 Retirement benefit liability 1,023 1,047 Provision for share awards 163 111 Asset retirement obligations 269 270 Other 13,775 13,812 Total non-current liabilities 77,680 81,475 Total liabilities 164,031 163,703 Net assets Shareholders’ equity Share capital 41,654 41,654 Capital surplus 10,468 10,468 Retained earnings 122,541 122,831 Treasury shares (1,446) (1,391) Total shareholders’ equity 173,217 173,562 Accumulated other comprehensive income Valuation difference on available-for-sale securities 19,560 18,927 Foreign currency translation adjustment 403 479 Remeasurements of defined benefit plans 2,124 2,072 Total other accumulated comprehensive income 22,088 21,479 Non-controlling interests 2,642 2,642 Total net assets 197,948 197,685 Total liabilities and net assets 361,980 361,388
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–6– (2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income Quarterly Consolidated Statement of Income Three months ended June 30, 2025 and 2026 (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 51,536 56,061 Cost of sales 39,743 40,965 Gross profit 11,792 15,096 Selling, general and administrative expenses 10,052 11,632 Operating profit 1,740 3,463 Non-operating income Interest income 24 27 Dividend income 467 497 Foreign exchange gains － 105 Share of profit of entities accounted for using the equity method 67 106 Rental income 33 28 Other 249 184 Total non-operating income 841 949 Non-operating expenses Interest expenses 285 389 Foreign exchange losses 191 － Other 185 433 Total non-operating expenses 661 822 Ordinary profit 1,920 3,590 Extraordinary income Gain on sale of non-current assets 5 105 Gain on sale of investment securities 453 233 Total extraordinary income 458 339 Extraordinary losses Loss on retirement of non-current assets 76 100 Loss on sale of non-current assets 0 13 Total extraordinary losses 77 114 Profit before income taxes 2,301 3,814 Income taxes – current 536 976 Income taxes – deferred 191 573 Total income taxes 728 1,549 Profit 1,573 2,264 Profit attributable to non-controlling interests 92 68 Profit attributable to owners of the parent 1,480 2,196
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–7– Quarterly Consolidated Statement of Comprehensive Income Three months ended June 30, 2025 and 2026 (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net income 1,573 2,264 Other comprehensive income Valuation difference on available-for-sale securities 1,821 (637) Foreign currency translation adjustment (71) 12 Remeasurements of defined benefit plans (25) (52) Share of other comprehensive income of entities accounted for using the equity method (50) 68 Total other comprehensive income 1,673 (608) Comprehensive income 3,246 1,656 Comprehensive income attributable to: Owners of the parent 3,154 1,587 Non-controlling interests 92 68
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–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) Not applicable. (Segment Information, etc.) I. Three months ended June 30, 2025 (April 1, 2025–June 30, 2025) Information on Net Sales and Profit or Loss by Reportable Segment (Millions of yen) Reportable segment Note 1 Note 2 Cement Mineral Resources Cement- Related Products High- Performance Products Other Total Adjustment Amount recorded in quarterly consolidated statement of income Net sales (1) Net sales to external customers 36,635 4,121 4,652 5,225 901 51,536 – 51,536 (2) Intersegment sales and transfers 803 843 462 4 1,168 3,282 (3,282) – Total 37,438 4,965 5,115 5,229 2,070 54,818 (3,282) 51,536 Segment profit (loss) (68) 552 (58) 891 400 1,716 23 1,740 (Notes) 1. “Adjustment” of segment profit (loss) of 23 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. Three months ended June 30, 2026 (April 1, 2026–June 30, 2026) 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 High- Performance Products Other Total Adjustment Amount recorded in quarterly consolidated statement of income Net sales (1) Net sales to external customers 39,462 4,576 4,853 6,192 976 56,061 – 56,061 (2) Intersegment sales and transfers 888 1,023 534 － 1,337 3,784 (3,784) – Total 40,351 5,599 5,388 6,192 2,314 59,846 (3,784) 56,061 Segment profit (loss) 1,573 759 (22) 740 374 3,425 37 3,463 (Notes) 1. “Adjustment” of segment profit (loss) of 37 million yen represents the elimination of intersegment transactions. 2. Segment profit (loss) is adjusted with operating profit of the quarterly consolidated statement of income.
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–9– 2. Changes in Reportable Segments As part of its efforts to further strengthen its organizational structure toward achieving the business portfolio transformation outlined in its medium- to long-term vision, "SOC Vision2035," the Company integrated the Optoelectronics Business Division and the Advanced Materials Business Division and newly established the High-Performance Products Business Division, effective April 1, 2026. Following this organizational restructuring, beginning with the period under review, the Company has changed the classification of its reportable segments by integrating the "Optoelectronics" and "Advanced Materials" segments into the "High-Performance Products" segment. Segment information for the corresponding period of the previous fiscal year is presented based on the revised reportable segment classification. (Notes on Quarterly Consolidated Statement of Cash Flows) Quarterly consolidated statement of cash flows ha s not been prepared for the period under review . Depreciation (including amortization of intangible assets excluding goodwill) and amortization of goodwill for the period under review are as follows. Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation 5,482 million yen 5,659 million yen Amortization of goodwill 7 million yen －
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–10– (Significant Subsequent Events) The Company resolved at the meeting of its Board of Directors held on August 4, 2026 to implement a stock split, partially amend its Articles of Incorporation, revise its dividend forecast, and revise its policy on shareholder returns (dividend policy). 1. Purpose of the Stock Split The purpose of the stock split is to enhance the liquidity of the Company's shares and further expand its investor base by reducing the investment unit price. 2. Overview of the Stock Split (1) Method of the Stock Split With September 30, 2026 as the record date, each common share of the Company held by shareholders recorded or registered in the final shareholders register as of that date will be split into three shares. (2) Number of Shares to be Increased by the Stock Split (i) Total number of issued shares before the stock split 32,068,117 shares (ii) Number of shares to be increased by this stock split 64,136,234 shares (iii) Total number of issued shares after the stock split 96,204,351 shares (iv) Total number of authorized shares after the stock split 380,000,000 shares (3) Schedule of the Stock Split (i) Scheduled date of public notice of the record date September 15, 2026 (Tuesday) (ii) Record date September 30, 2026 (Wednesday) (iii) Effective date October 1, 2026 (Thursday) (4) Other There will be no change in the amount of stated capital as a result of the stock split. 3. Partial Amendment to the Articles of Incorporation Accompanying the Stock Split (1) Reason for the Amendment to the Articles of Incorporation In connection with the stock split, under Article 184, Paragraph 2 of the Companies Act, the Company will partially amend its Articles of Incorporation by resolution of the Board of Directors, with an effective date of October 1, 2026. (2) Details of the Amendment The details of the amendment are as follows. (The underlined portion indicates the amendment.) Current Amended (Total number of authorized shares) Article 6 The total number of authorized shares of the Company shall be 130,000,000. (Total number of authorized shares) Article 6 The total number of authorized shares of the Company shall be 380,000,000. (3) Schedule of the Amendment (i) Date of the Board of Directors' resolution August 4, 2026 (Tuesday) (ii) Effective date October 1, 2026 (Thursday)
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–11– 4. Effect on Per Share Information Assuming that the stock split had been implemented at the beginning of the previous consolidated fiscal year, the per share information would have been as follows. Three months ended June 30, 2025 Three months ended June 30, 2026 Basic earnings per share (Yen) 15.05 23.09 Diluted earnings per share (Yen) － － (Note) Diluted earnings per share is not presented because there were no dilutive shares. 5. Revision of the Shareholder Return Policy (Dividend Policy) In connection with the stock split, the minimum annual dividend per share under the shareholder return policy in the "FY2026–28 Medium-Term Management Plan" announced on May 13, 2026, will be revised as follows. This revision is made to reflect the stock split ratio, and there is no substantive change to the minimum annual dividend per share. Minimum annual dividend per share before the revision Minimum annual dividend per share after the revision 120.00 yen 40.00 yen
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–12– 3. Supplementary Information (1) Consolidated Net Sales and Profit or Loss by Segment (YoY Comparison) (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 YoY change Amount % Cement 36,635 39,462 2,827 7.7 Mineral Resources 4,121 4,576 454 11.0 Cement-Related Products 4,652 4,853 200 4.3 High-Performance Products 5,225 6,192 967 18.5 Other 901 976 75 8.3 Net sales for external customers 51,536 56,061 4,525 8.8 Cement (68) 1,573 1,642 – Mineral Resources 552 759 207 37.5 Cement-Related Products (58) (22) 36 – High-Performance Products 891 740 (151) (17.0) Other 400 374 (26) (6.5) Adjustment amount 23 37 14 63.7 Operating profit 1,740 3,463 1,723 99.1 Non-operating income 841 949 108 12.9 Non-operating expenses 661 822 161 24.4 Non-operating income (expenses), net 180 126 (53) (29.5) Ordinary profit 1,920 3,590 1,670 87.0 Extraordinary income 458 339 (119) (26.0) Extraordinary losses 77 114 37 49.1 Extraordinary income (losses), net 381 224 (156) (41.2) Profit attributable to owners of the parent 1,480 2,196 715 48.3