Interim report
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DISCLAIMER: This document has been translated from a part of th e Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. October 29, 2025 Consolidated Financial Results for the Six Months Ended September 30, 2025 (Under Japanese GAAP) Company name: Nippon Seisen Co.,Ltd. Listing: Tokyo Stock Exchange Securities code: 5659 URL: https://www.n-seisen.co.jp/ Representative: Kazuhiro Toshimitsu, President and CEO Inquiries: Kazuo Nomura, General Manager, Accounting Department Telephone: +81-6-6222-5432 Scheduled date to file semi-annual securities report: November 7, 2025 Scheduled date to commence dividend payments: December 3, 2025 Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for institutional i nvestors and analysts) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financi al results for the six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) (1) Consolidated operating results (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2025 22,478 (3.8) 1,194 (48.5) 1,242 (46.9) 902 (43.9) September 30, 2024 23,371 7.4 2,318 42.7 2,341 34.4 1,609 31.8 Note: Comprehensive income For the six months ended September 3 0, 2025: ¥1,044 million [(50.4)%] For the six months ended September 30, 2024: ¥2,105 million [35 .7%] Basic earnings per share Diluted earnings per share Six months ended Yen Yen September 30, 2025 29.41 - September 30, 2024 52.49 - (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % September 30, 2025 55,603 42,116 74.5 March 31, 2025 55,884 41,904 73.7 Reference: Equity As of September 30, 2025: ¥41,421 million As of March 31, 2025: ¥41,208 million 2. Cash dividends Annual dividends per share First quarter-end Second quarte r-end Third quarter-end Fiscal year-end T o t a l Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 - 28.00 - 28.00 56.00 Fiscal year ending March 31, 2026 - 16.00 Fiscal year ending March 31, 2026 (Forecast) - 26.00 42.00 Note: Revisions to the forecast of cash dividends most recently announced: None 3. Forecast of consolidated financial results for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Fiscal year ending March 31, 2026 43,500 (7.0) 3,200 (30.1) 3,200 (30.2) 2,300 (29.2) 74.99 Note: Revisions to the earnings forecasts most recently announced: None
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* Notes (1) Significant changes in the s cope of consolidation during the period: None (2) Adoption of accounting treatme nt specific to the preparation of semi-annual consolidated financial statements:None (3) Changes in accounting policie s, changes in accounting estimates, and restatement (i) Changes in accounting policie s due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policie s due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued share s at the end of the period (including treasury shares) As of September 30, 2025 31,265,190 shares As of March 31, 2025 31,265,190 shares (ii) Number of treasury shar es at the end of the period As of September 30, 2025 552,271 shares As of March 31, 2025 592,566 shares (iii) Average number of shares outstanding during the period(cumulative from the beginning of the fiscal year) Six months ended September 30, 2025 30,697,531 shares Six months ended September 30, 2024 30,672,934 shares * The Company has introduced a "Stock Benefit Trust (BBT)" and includes the Company's shares held by the trust in the treasury stock that is deducted for the calculation of the number of treasury shares at the end of the fiscal year and the average number of shares during the period. * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecas ts, and other special matters (Cautions on forward-looking statements, etc.) The forward-looking statements, including forecasts of financial results, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Actual financial results, etc. may differ substantially due to various factors. For the conditions on which earnings forecasts are predicated and precautions for the use of earnings forecasts, please refer to Appendix P.3 "1. Summary of Operating Results, etc. (3) Explanation of Forward-Looking Information such as Consolidated Earnings Forecasts." (Method of accessing supplementary material on financial results) Supplementary explanatory materials for financial results will be posted on the Company's website.
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Semi-annual consolidated balance sheet (Millions of yen) As of March 31, 2025 As of September 30, 2025 Assets Current assets Cash and deposits 17,065 16,574 Notes and accounts receivable - trade 7,705 6,960 Electronically recorded monetary claims - operating 2,064 1,856 Merchandise and finished goods 3,070 3,271 Work in process 4,610 4,781 Raw materials and supplies 3,266 3,197 Other 338 353 Total current assets 38,121 36,996 Non-current assets Property, plant and equipment Buildings and structures, net 5,109 5,105 Machinery, equipment and vehicles, net 6,748 6,396 Land 1,667 1,676 Leased assets, net 14 11 Construction in progress 1,677 2,881 Other, net 527 518 Total property, plant and equipment 15,745 16,589 Intangible assets 155 180 Investments and other assets 1,861 1,837 Total non-current assets 17,763 18,606 Total assets 55,884 55,603
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(Millions of yen) As of March 31, 2025 As of September 30, 2025 Liabilities Current liabilities Notes and accounts payable - trade 6,475 6,669 Electronically recorded obligations - operating 4 21 Short-term borrowings 257 179 Income taxes payable 825 343 Provision for bonuses 733 758 Provision for bonuses for directors (and other officers) 39 - Other 990 910 Total current liabilities 9,326 8,882 Non-current liabilities Provision for share awards for directors (and other officers) 102 85 Retirement benefit liability 4,212 4,286 Provision for environmental measures 211 165 Other 126 66 Total non-current liabilities 4,653 4,604 Total liabilities 13,980 13,487 Net assets Shareholders' equity Share capital 5,000 5,000 Capital surplus 5,558 5,558 Retained earnings 29,228 29,264 Treasury shares (393) (357) Total shareholders' equity 39,393 39,465 Accumulated other comprehensive income Valuation difference on available-for-sale securities 27 36 Deferred gains or losses on hedges 0 (0) Foreign currency translation adjustment 1,520 1,677 Remeasurements of defined benefit plans 266 242 Total accumulated other comprehensive income 1,814 1,955 Non-controlling interests 696 694 Total net assets 41,904 42,116 Total liabilities and net assets 55,884 55,603
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Semi-annual consolidated statement of income (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Net sales 23,371 22,478 Cost of sales 19,244 19,477 Gross profit 4,127 3,000 Selling, general and administrative expenses 1,808 1,805 Operating profit 2,318 1,194 Non-operating income Interest income 15 26 Dividend income 1 1 Purchase discounts 12 13 Compensation income 8 17 Rental income 12 12 Foreign exchange gains - 4 Other 1 1 Total non-operating income 51 76 Non-operating expenses Interest expenses 2 1 Compensation expenses 1 9 Loss on retirement of non-current assets 3 4 Foreign exchange losses 17 - Other 4 13 Total non-operating expenses 29 28 Ordinary profit 2,341 1,242 Extraordinary losses Loss on sale of non-current assets - 0 Total extraordinary losses - 0 Profit before income taxes 2,341 1,241 Income taxes - current 738 272 Income taxes - deferred (28) 51 Total income taxes 709 324 Profit 1,632 917 Profit attributable to non-controlling interests 22 15 Profit attributable to owners of parent 1,609 902
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Semi-annual consolidated statement of comprehensive income (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Profit 1,632 917 Other comprehensive income Valuation difference on available-for-sale securities (7) 9 Deferred gains or losses on hedges 2 (0) Foreign currency translation adjustment 479 141 Remeasurements of defined benefit plans, net of tax (0) (24) Total other comprehensive income 473 126 Comprehensive income 2,105 1,044 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,031 1,043 Comprehensive income attributable to non-controlling interests 73 0
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Semi-annual consolidated statement of cash flows (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Cash flows from operating activities Profit before income taxes 2,341 1,241 Depreciation 844 820 Increase (decrease) in retirement benefit liability 121 36 Increase (decrease) in provision for share awards for directors (and other officers) 28 18 Increase (decrease) in provision for bonuses 24 25 Increase (decrease) in provision for bonuses for directors (and other officers) (39) (39) Increase (decrease) in provision for environmental measures - (46) Interest and dividend income (17) (28) Interest expenses 2 1 Foreign exchange losses (gains) 1 2 Loss (gain) on sale of property, plant and equipment - 0 Loss on retirement of property, plant and equipment 3 4 Decrease (increase) in trade receivables (155) 956 Decrease (increase) in inventories (677) (269) Increase (decrease) in trade payables 722 189 Other, net (419) (101) Subtotal 2,782 2,813 Interest and dividends received 12 27 Interest paid (2) (1) Income taxes paid (551) (754) Net cash provided by (used in) operating activities 2,241 2,083 Cash flows from investing activities Payments into time deposits (448) (584) Proceeds from withdrawal of time deposits 325 380 Purchase of property, plant and equipment (703) (1,635) Proceeds from sale of property, plant and equipment - 0 Other, net (15) (44) Net cash provided by (used in) investing activities (842) (1,883) Cash flows from financing activities Repayments of long-term borrowings (81) (81) Repayments of lease liabilities (4) (3) Purchase of treasury shares (0) (0) Dividends paid (648) (859) Dividends paid to non-controlling interests (0) (2) Net cash provided by (used in) financing activities (735) (946) Effect of exchange rate change on cash and cash equivalents 185 30 Net increase (decrease) in cash and cash equivalents 849 (716) Cash and cash equivalents at beginning of period 14,608 16,479 Cash and cash equivalents at end of period 15,458 15,763
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(Notes on segment information, etc.) Segment Information I. Previous interim consolidated accounting period (April 1, 2024 to September 30, 2024) 1. Information on the amount of sales and profit for each reported segment and information on the breakdown of revenue (Millions of yen) Reportable segments Adjustment amount (Note) 1 Semi-annual Consolidated Statements of Income (Note)2 Japan Thailand ChinaAndKorea Total Sales Stainless Steel Wire 17,564 2,025 165 19,755 - 19,755 Metal Fibers 3,053 - 562 3,616 - 3,616 Revenue generated from customer contracts 20,618 2,025 727 23,371 - 23,371 Other Earnings - - - - - - Revenues from external customers 20,618 2,025 727 23,371 - 23,371 Transactions with other segments 89 861 140 1,091 (1,091) - Total 20,708 2,886 868 24,463 (1,091) 23,371 Segment Profit 2,113 92 150 2,356 (38) 2,318 Note: 1. Segment profit adjustment of (38) million yen includes the elimination of inter-segment transactions of (12) million yen and the company-wide expenses of (25) million yen that have not been allocated to each reporting segment. Corporate expenses are general and administrative expenses that are not primarily attributable to the reporting segment. 2. Segment profit is adjusted to operating income in the semi-annual consolidated statements of income. 2. Information on impairment losses or goodwill on fixed assets by reporting segment Not applicable. II. Interim Consolidated Accounting Period (April 1, 2025 to September 30, 2025) 1. Information on the amount of sales and profit for each reported segment and information on the breakdown of revenue (Millions of yen) Reportable segments Adjustment amount (Note) 1 Semi-annual Consolidated Statements of Income (Note)2 Japan Thailand ChinaAndKorea Total Sales Stainless Steel Wire 16,667 1,932 107 18,708 - 18,708 Metal Fibers 3,447 - 323 3,770 - 3,770 Revenue generated from customer contracts 20,115 1,932 431 22,478 - 22,478 Other Earnings - - - - - - Revenues from external customers 20,115 1,932 431 22,478 - 22,478 Transactions with other segments 99 852 249 1,201 (1,201) - Total 20,214 2,784 680 23,679 (1,201) 22,478 Segment Profit 1,078 65 70 1,215 (20) 1,194 Note: 1. Segment profit adjustment of (20) million yen includes 4 million yen for the elimination of inter-segment transactions and (25) million yen for company-wide expenses that have not been allocated to each reporting segment. Corporate expenses are general and administrative expenses that are not primarily attributable to the reporting segment. 2. Segment profit is adjusted to operating income in the semi-annual consolidated statements of income. 2. Information on impairment losses or goodwill on fixed assets by reporting segment Not applicable.