Interim report
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Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2027 (April 1, 2026 to June 30, 2026) <Japanese GAAP> August 4, 2026 Company Name: NICHIAS Corporation Stock Exchange Listing: Tokyo Stock Exchange (Code number 5393) URL: https://www.nichias.co.jp/nichias-E/ Representative: Katsumi Kametsu, President and Chief Executive Officer Inquiries: Tsukasa Yamamoto, Representative Director and Senior Managing Executive Officer Phone: +81-3-4413-1111 Scheduled date of commencement of dividend payment: － Supplementary materials for financial results: Available Organization of financial results briefing: None (Fractional amounts of less than ¥1 million are discarded.) 1. Consolidated financial results for the first quarter of Fiscal Year 2026 (April 1, 2026 to June 30, 2026) (1) Operating Results (cumulative) (Percentages represent year-on-year changes) Net sales Operating income Ordinary income Profit attributable to owners of the parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % FY2026 Q1 71,954 16.0 11,136 20.7 11,850 28.3 8,231 25.3 FY2025 Q1 62,044 (1.9) 9,229 (12.5) 9,233 (23.4) 6,569 (23.1) Note: Comprehensive income: FY2026 Q1 ¥11,342 million---113.7%; FY2025 Q1: ¥5,306 million---(45.1)% Basic earnings per share Diluted earnings per share Yen Yen FY2026 Q1 43.56 － FY2025 Q1 34.09 － Note: Effective April 1, 2026, the Company has implemented a stock split at a ratio of 3 shares for each 1 share of its common stock. Basic earnings per share has been calculated on the assumption that the stock split had taken place at the beginning of the previous fiscal year. (2) Consolidated Financial Position Total assets Net assets Equity ratio Millions of yen Millions of yen % As of June 30, 2026 317,012 244,239 76.7 As of March 31, 2026 307,123 239,612 77.7 (Reference) Shareholders’ equity: FY2026 Q1 ¥243,128 million; as of March 31, 2026 (FY2025) ¥238,515 million 2. Dividends Annual Dividends End of 1st quarter End of 1st half End of 3rd quarter Year end Total FY2025 Yen Yen 76.00 Yen － Yen 88.00 Yen 164.00 － FY2026 － FY2026 (Forecast) 35.00 － 30.00 65.00 Notes: 1. Adjustments from the most recently released dividend forecast: None
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2. Effective April 1, 2026, the Company has implemented a stock split at a ratio of 3 shares for each 1 share of its common stock. For FY2025, the actual dividend amounts prior to the stock split are shown. For FY2027 (forecast), the figures following the stock split are shown. 3. Forecast of consolidated financial results for Fiscal Year 2026 (April 1, 2026 to March 31, 2027) (Percentage figures represent changes from previous fiscal year) Net sales Operating income Ordinary income 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 141,500 15.3 22,500 26.6 23,300 26.9 16,500 29.5 87.58 Full year 288,000 14.3 49,000 32.4 50,500 28.2 35,000 10.6 186.13 Note: Adjustments from the most recently released consolidated results forecast: Yes *For details of the revisions to our earnings forecasts, please see “Notice of Revisions to Earnings Forecasts” released separately today. *Notes (1) Significant changes in the scope of consolidation during the consolidated quarter under review: Yes Newly included 2companies (Company names) NICHIAS INDUSTRIAL PRODUCTS PRIVATE LTD. and one other company (2) Application of specific accounting methods in the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatements 1) Changes in accounting policies due to revision of accounting standards, etc.: None 2) Changes other than those in 1) above: None 3) Changes in accounting estimates: None 4) Restatements: None (4) Number of shares outstanding (ordinary shares) 1) Number of shares issued at the end of the period (including treasury stock) FY2026 Q1 (As of June 30, 2026) 190,985,751 shares FY2025 (As of March 31, 2026) 190,985,751 shares 2) Number of shares of treasury stock at the end of the period FY2026 Q1 (As of June 30, 2026) 2,522,420 shares FY2025 (As of March 31, 2026) 1,896,849 shares 3) Average number of shares outstanding during the period FY2026 Q1 (As of June 30, 2026) 188,978,881 shares FY2025 Q1 (As of June 30, 2025) 192,670,479 shares Notes: 1. Effective April 1, 2026, the Company has implemented a share split at a ratio of 3 shares for each 1 share of its common stock. The number of shares issued at the end of the period (including treasury stock), the number of shares of treasury stock at the end of the period, and the average number of shares outstanding during the period have been calculated on the assumption that the share split had taken place at the beginning of the previous fiscal year. 2. The Company introduced a stock-grant plan utilizing a stock-grant ESOP trust during the first quarter of the current fiscal year. The number of shares of treasury stock deducted in calculating the number of shares of treasury stock at the end of the period and the average number of shares outstanding during the period includes shares of the Company held by the trust account established in connection with the introduction of the stock-grant plan utilizing the stock-grant ESOP trust (156,080 shares at the end of FY2026 Q1). *Review of the accompanying quarterly consolidated financial statements by a certified public accountant or auditing firm: None *Information concerning proper use of financial forecasts and other special notes (Information concerning forward-looking statements) Forward-looking statements concerning financial forecasts contained in these materials are based on information available to the Company when the forecasts were made and certain assumptions judged to be reasonable. However, the Company makes no guarantee that these forecasts will be realized, and actual results may differ significantly from the forecasts due to a variety of factors.
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Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience. Since no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company. This summary does not constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on these statements. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.
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2. Consolidated financial statements and related notes (1) Quarterly consolidated balance sheets (Millions of yen) FY2025 (As of March 31, 2026) FY2026 Q1 (As of June 30, 2026) Assets Current assets Cash and deposits 57,723 61,712 Notes and accounts receivable–trade 33,549 35,223 Electronically recorded monetary claims 16,606 17,786 Accounts receivable from completed construction contracts 22,327 22,441 Merchandise and finished goods 22,875 23,210 Work in process 3,896 4,575 Raw materials and supplies 27,290 27,167 Costs on uncompleted construction contracts 2,505 2,361 Others 5,562 3,827 Allowance for doubtful accounts (22) (22) Total current assets 192,315 198,285 Noncurrent assets Property, plant and equipment Buildings and structures 79,935 81,413 Accumulated depreciation and impairment loss (43,359) (44,235) Buildings and structures, net 36,576 37,178 Machinery, equipment and vehicles 90,234 91,997 Accumulated depreciation and impairment loss (77,385) (78,421) Machinery, equipment and vehicles, net 12,849 13,575 Land 15,270 15,294 Lease assets 471 478 Accumulated depreciation (290) (313) Lease assets, net 181 165 Construction in progress 4,434 3,605 Others 14,531 14,951 Accumulated depreciation and impairment loss (12,078) (12,306) Others, net 2,453 2,644 Total property, plant and equipment 71,765 72,463 Intangible assets Software 619 568 Others 1,449 1,671 Total intangible assets 2,068 2,239 Investments and other assets Investment securities 17,926 21,717 Long-term loans receivable 858 3 Net defined benefit asset 15,194 15,294 Deferred tax assets 2,552 2,461 Others 5,245 5,254 Allowance for doubtful accounts (804) (705) Total investments and other assets 40,973 44,024 Total noncurrent assets 114,807 118,727 Total assets 307,123 317,012
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(Millions of yen) FY2025 (As of March 31, 2026) FY2026 Q1 (As of June 30, 2026) Liabilities Current liabilities Notes and accounts payable–trade 16,638 17,382 Electronically recorded monetary obligations 7,029 7,077 Short-term loans payable 9,750 10,037 Accounts payable–other 7,046 5,778 Income taxes payable 2,439 1,939 Advances received on uncompleted construction contracts 611 659 Provision for bonuses 2,900 2,195 Others 5,729 10,474 Total current liabilities 52,144 55,545 Noncurrent liabilities Deferred tax liabilities 6,298 7,630 Net defined benefit liability 4,344 4,413 Reserves for litigation losses 285 260 Lease obligations 977 965 Others 3,458 3,956 Total noncurrent liabilities 15,365 17,227 Total liabilities 67,510 72,773 Net assets Shareholders’ equity Capital stock 12,128 12,128 Capital surplus 12,753 13,004 Retained earnings 190,210 194,028 Treasury stock (2,974) (5,523) Total shareholders’ equity 212,117 213,638 Total other cumulative comprehensive income Valuation difference on available-for-sale securities 9,090 11,811 Foreign currency translation adjustment 9,670 10,183 Remeasurement of defined benefit plans 7,636 7,493 Total other cumulative comprehensive income 26,397 29,489 Non-controlling interests 1,097 1,111 Total net assets 239,612 244,239 Total liabilities and net assets 307,123 317,012
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(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income Quarterly consolidated statements of income First quarter of consolidated fiscal year (Millions of yen) FY2025 Q1 (From April 1, 2025 to June 30, 2025) FY2026 Q1 (From April 1, 2026 to June 30, 2026) Net sales Net sales of merchandise and finished goods 45,196 52,812 Net sales of completed construction contracts 16,848 19,141 Total net sales 62,044 71,954 Cost of sales Cost of merchandise and finished goods sold 30,962 35,673 Cost of sales of completed construction contracts 13,815 15,606 Total cost of sales 44,778 51,279 Gross profit 17,266 20,674 Selling, general and administrative expenses Selling expenses 2,130 2,500 General and administrative expenses 5,905 7,037 Total selling, general and administrative expenses 8,036 9,538 Operating income 9,229 11,136 Non-operating income Interest income 44 39 Dividends income 227 200 Foreign exchange gain - 308 Rent income 146 147 Equity in earnings of affiliates 12 27 Others 198 156 Total non-operating income 629 879 Non-operating expenses Interest expenses 54 60 Foreign exchange losses 467 - Others 103 104 Total non-operating expenses 625 164 Ordinary income 9,233 11,850 Extraordinary income Gain on sales of noncurrent assets 12 4 Gain on extinguishment of tie-in shares - 51 Total extraordinary income 12 56 Extraordinary loss Loss on sales and retirement of noncurrent assets 27 32 Provision for litigation loss reserves 20 2 Litigation settlement - 6 Total extraordinary losses 48 41 Income before income taxes 9,197 11,866 Income taxes–current 1,840 3,428 Income taxes–deferred 747 181 Total income taxes 2,588 3,609 Net income 6,609 8,256 Net income attributable to non-controlling interests 40 24 Profit attributable to owners of the parent 6,569 8,231
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Quarterly consolidated statement of comprehensive income First quarter of consolidated fiscal year (Millions of yen) FY2025 Q1 (From April 1, 2025 to June 30, 2025) FY2026 Q1 (From April 1, 2026 to June 30, 2026) Net income 6,609 8,256 Other comprehensive income Valuation difference on available-for-sale securities 203 2,721 Foreign currency translation adjustment (1,430) 507 Remeasurement of defined benefit plans (75) (143) Total other comprehensive income (1,302) 3,086 Comprehensive income 5,306 11,342 Breakdown Comprehensive income attributable to owners of the parent company 5,294 11,323 Comprehensive income attributable to non-controlling interests 11 18
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(3) Quarterly consolidated statements of cash flows (Millions of yen) FY2025 Q1 (From April 1, 2025 to June 30, 2025) FY2026 Q1 (From April 1, 2026 to June 30, 2026) Net cash provided by (used in) operating activities Income before income taxes 9,197 11,866 Depreciation & amortization 1,736 1,893 Loss (gain) on sales of noncurrent assets 15 27 Loss (gain) on extinguishment of tie-in shares - (51) Decrease (increase) in net defined benefit assets (192) (293) Increase (decrease) in net defined benefit liability 28 47 Increase (decrease) in provision for bonuses (1,339) (715) Interest and dividends income received (271) (239) Interest expenses 54 60 Foreign exchange losses (gains) 344 (182) Decrease (increase) in notes and accounts receivable–trade 144 (2,506) Decrease (increase) in inventories (3) (85) Decrease (increase) in costs on uncompleted construction contracts (378) 148 Increase (decrease) in notes and accounts payable–trade (967) 314 Increase (decrease) in accounts payable–other (218) 906 Increase (decrease) in accrued expenses 3,119 3,222 Increase (decrease) in advances received on uncompleted construction contracts 62 51 Increase (decrease) in provisions for litigation losses 20 (25) Others 188 1,269 Subtotal 11,541 15,708 Interest and dividends income received 271 239 Interest expenses paid (52) (65) Expenses related to factory reconstruction paid (105) (136) Income taxes paid (7,905) (2,328) Income taxes refund 43 10 Net cash provided by (used in) operating activities 3,793 13,428 Net cash provided by (used in) investing activities Net decrease (increase) in time deposits 146 245 Expenditures for the acquisition of property, plant and equipment (1,832) (2,612) Proceeds from sales of property, plant and equipment 12 38 Expenditures for the acquisition of intangible fixed assets (60) (265) Others (33) (53) Net cash provided by (used in) investing activities (1,768) (2,647)
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(Millions of yen) FY2025 Q1 (From April 1, 2025 to June 30, 2025) FY2026 Q1 (From April 1, 2026 to June 30, 2026) Net cash provided by (used in) financing activities Net increase (decrease) in short-term loans payable 30 142 Cash dividends paid (3,457) (5,348) Net decrease (increase) in treasury stock (2,302) (2,296) Dividends paid to non-controlling interests (0) (5) Others (108) (185) Net cash provided by (used in) financing activities (5,838) (7,693) Effect of exchange rate change on cash and cash equivalents (586) 370 Net increase (decrease) in cash and cash equivalents (4,400) 3,457 Cash and cash equivalents at beginning of period 58,611 56,631 Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation - 712 Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries - 57 Cash and cash equivalents at end of period 54,211 60,859