Interim report
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Note : This document has been translated from a part of the Japanese original and is provided for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) August 7 , 2026 FASF Company name : DOWA HOLDINGS CO . , LTD . Listing : Tokyo Stock Exchange Securities code : 5714 URL : https://hd.dowa.co.jp/ Representative : FUKUDA Kensaku Inquiries : ETO Hiroki Telephone : + 81-3-6847-1106 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Yes Holding of financial results briefing : Yes Representative Director , President and COO General Manager of Corporate Strategy Dept. ( Yen amounts are rounded down to millions , unless otherwise noted . ) 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 ) ( Percentages indicate year - on - year changes . ) Profit attributable to owners of parent Net sales Three months ended June 30 , 2026 Millions of yen 253,395 % June 30 , 2025 Note : Comprehensive income Three months ended June 30 , 2026 June 30 , 2025 ( 2 ) Consolidated financial position For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : Basic earnings per share Yen 396.51 107.50 160,129 58.2 ( 15.3 ) Operating profit Millions of yen 24,748 6,494 % 281.0 ( 44.6 ) Ordinary profit Millions of yen 32,527 % Millions of yen % 8,616 277.5 ( 39.7 ) 23,452 266.4 6,401 ( 45.7 ) ¥ 26,972 million [ 778.2 % ] ¥ 3,071 million [ ( 80.8 ) % ] Diluted earnings per share Yen As of June 30 , 2026 Total assets Net assets Equity - to - asset ratio Millions of yen Millions of yen % 801,299 794,476 475,872 57.5 474,629 57.3 As of June 30 , 2026 : ¥ 460,503 million As of March 31 , 2026 : ¥ 455,564 million March 31 , 2026 Reference : Equity -1-
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―2― 22222..... CCCCCaaaaassssshhhhh dddddiiiiivvvvviiiiidddddeeeeennnnndddddsssss Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended - - - 368.00 368.00March 31, 2026 Fiscal year ending -March 31, 2027 Fiscal year ending March 31, 2027 (Forecast) - - 338.00 338.00 Note: Revisions to the forecast of cash dividends most recently announced: None Note: Breakdown of year-end dividends for the fiscal year ended March 31, 2026 : Ordinary dividends: ¥ 268.00 Special dividends: ¥ 100.00 Note: Breakdown of year-end dividends for the fiscal year ending March 31, 2027(Forecast): Ordinary dividends: ¥ 338.00 33333..... CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd fffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll rrrrreeeeesssssuuuuulllllttttt fffffooooorrrrreeeeecccccaaaaassssstttttsssss fffffooooorrrrr ttttthhhhheeeee fffffiiiiissssscccccaaaaalllll yyyyyeeeeeaaaaarrrrr eeeeennnnndddddiiiiinnnnnggggg MMMMMaaaaarrrrrccccchhhhh 3333311111,,,,, 22222000002222277777 (((((fffffrrrrrooooommmmm AAAAAppppprrrrriiiiilllll 11111,,,,, 22222000002222266666 tttttooooo MMMMMaaaaarrrrrccccchhhhh 3333311111,,,,, 22222000002222277777))))) (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 Six months ending September 30, 2026 449,400 41.7 23,700 101.7 37,100 137.6 26,600 95.2 449.72 Full year 941,000 26.2 53,000 55.0 80,000 47.3 57,000 (8.7) 963.68 Note: Revisions to the financial result forecast most recently announced: None ***** NNNNNooooottttteeeeesssss (1) Significant changes in the scope of consolidation during the period: None Newly included: - companies( ) Excluded: - companies( ) (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies 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 shares at the end of the period (including treasury shares) As of June 30, 2026 61,989,206 shares As of March 31, 2026 61,989,206 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 2,840,929 shares As of March 31, 2026 2,840,817 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 59,148,318 shares Three months ended June 30, 2025 59,549,263 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes(voluntary) * Proper use of earnings forecasts, and other special matters Forward-looking statements made in this document, such as business forecast, are based on the information available at this time and on certain premises that the Company assumes to be reasonable. Actual performance may differ materially from such forecasts due to a variety of factors.
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―3― Quarterly Consolidated Financial Statements and Primary Notes Quarterly Consolidated Balance Sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 51,225 48,195 Notes and accounts receivable - trade, and contract assets 105,119 103,808 Merchandise and finished goods 71,675 71,298 Work in process 16,025 15,978 Raw materials and supplies 207,468 213,119 Other 25,502 33,112 Allowance for doubtful accounts (231) (228) Total current assets 476,785 485,284 Non-current assets Property, plant and equipment Buildings and structures 205,596 207,664 Accumulated depreciation (115,603) (117,230) Buildings and structures, net 89,992 90,434 Machinery, equipment and vehicles 347,805 349,820 Accumulated depreciation (284,774) (288,473) Machinery, equipment and vehicles, net 63,030 61,346 Land 28,330 28,960 Construction in progress 23,823 23,542 Other 26,841 27,227 Accumulated depreciation (21,280) (21,702) Other, net 5,561 5,525 Total property, plant and equipment 210,740 209,810 Intangible assets Goodwill 1,193 1,069 Other 6,368 6,138 Total intangible assets 7,561 7,208 Investments and other assets Investment securities 88,001 88,556 Deferred tax assets 7,163 6,213 Other 4,325 4,323 Allowance for doubtful accounts (102) (97) Total investments and other assets 99,389 98,996 Total non-current assets 317,691 316,014 Total assets 794,476 801,299
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―4― (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 70,188 73,628 Short-term borrowings 29,306 44,614 Commercial papers 17,000 25,000 Current portion of bonds payable 10,000 10,000 Income taxes payable 11,727 8,195 Accrued consumption taxes 9,282 2,893 Provisions Provision for bonuses 5,771 3,032 Provision for bonuses for directors (and other officers) 355 93 Total provisions 6,126 3,125 Borrowing precious metals 54,049 52,573 Other 41,866 34,478 Total current liabilities 249,547 254,509 Non-current liabilities Bonds payable 10,000 10,000 Long-term borrowings 24,384 24,758 Deferred tax liabilities 4,002 4,261 Provisions Provision for retirement benefits for directors (and other officers) 328 228 Other provisions 112 112 Total provisions 440 341 Retirement benefit liability 21,860 21,969 Other 9,611 9,586 Total non-current liabilities 70,299 70,917 Total liabilities 319,846 325,426 Net assets Shareholders' equity Share capital 36,437 36,437 Capital surplus 24,229 24,229 Retained earnings 352,642 354,397 Treasury shares (12,986) (12,987) Total shareholders' equity 400,323 402,077 Accumulated other comprehensive income Valuation difference on available-for-sale securities 32,257 34,049 Deferred gains or losses on hedges (1,242) (1,323) Foreign currency translation adjustment 21,880 23,370 Remeasurements of defined benefit plans 2,346 2,329 Total accumulated other comprehensive income 55,241 58,425 Non-controlling interests 19,064 15,368 Total net assets 474,629 475,872 Total liabilities and net assets 794,476 801,299
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―5― Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income For the Three-Month Period (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales 160,129 253,395 Cost of sales 140,507 213,895 Gross profit 19,622 39,499 Selling, general and administrative expenses 13,127 14,751 Operating profit 6,494 24,748 Non-operating income Interest income 75 96 Dividend income 600 631 Share of profit of entities accounted for using equity method 1,609 6,267 Foreign exchange gains - 308 Royalty income 88 590 Onerous sample cost income 458 335 Other 412 651 Total non-operating income 3,246 8,881 Non-operating expenses Interest expenses 176 372 Foreign exchange losses 283 - Environmental expenses 352 361 Other 311 369 Total non-operating expenses 1,124 1,103 Ordinary profit 8,616 32,527 Extraordinary income Insurance claim income - 189 Subsidy income - 76 Gain on sale of non-current assets 401 9 Other 34 3 Total extraordinary income 435 278 Extraordinary losses Loss on retirement of non-current assets 207 298 Other 25 62 Total extraordinary losses 232 360 Profit before income taxes 8,820 32,445 Income taxes 2,327 8,678 Profit 6,492 23,766 Profit attributable to non-controlling interests 90 313 Profit attributable to owners of parent 6,401 23,452
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―6― Quarterly Consolidated Statement of Comprehensive Income For the Three-Month Period (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit 6,492 23,766 Other comprehensive income Valuation difference on available-for-sale securities 447 1,792 Deferred gains or losses on hedges 609 (81) Foreign currency translation adjustment (3,012) 722 Remeasurements of defined benefit plans, net of tax (89) (16) Share of other comprehensive income of entities accounted for using equity method (1,375) 789 Total other comprehensive income (3,421) 3,206 Comprehensive income 3,071 26,972 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,881 26,636 Comprehensive income attributable to non-controlling interests 189 336
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―7― Segment Information Segment information by business type as of June 30, 2025 and 2026 is summarized as follows : (Yen amounts are rounded down to millions, unless otherwise noted.) For the three months ended June 30, 2025 (From April 01, 2025 to June 30, 2025) (Millions of yen) Reporting Segments Others Total Eliminations & Company- wide ConsolidatedEnvironmental Management & Recycling Nonferrous Metals Electronic Materials Metal Processing Heat Treatment Sub Total Net sales (1) Sales to external customers 26,050 71,434 21,377 33,050 7,370 159,283 846 160,129 - 160,129 (2) Intersegment sales or transfers 22,946 2,777 1,299 16 0 27,040 2,634 29,674 (29,674) - Total 48,996 74,212 22,676 33,067 7,370 186,323 3,480 189,804 (29,674) 160,129 Segment profit (loss) (Note 2) 3,628 3,639 (599) 787 261 7,717 165 7,883 733 8,616 For the three months ended June 30, 2026 (From April 01, 2026 to June 30, 2026) (Millions of yen) Reporting Segments Others Total Eliminations & Company- wide ConsolidatedEnvironmental Management & Recycling Nonferrous Metals Electronic Materials Metal Processing Heat Treatment Sub Total Net sales (1) Sales to external customers 29,246 119,023 49,236 46,511 8,426 252,443 952 253,395 - 253,395 (2) Intersegment sales or transfers 35,957 6,715 2,862 32 2 45,569 2,556 48,126 (48,126) - Total 65,203 125,738 52,098 46,543 8,428 298,012 3,509 301,521 (48,126) 253,395 Segment profit (loss) (Note 2) 4,077 22,844 2,023 2,779 237 31,962 (24) 31,938 588 32,527 (Note 1) The classification of businesses for the segment information by business type is based on the classification adopted by the internal management system. (1) Environmental Management & Recycling : Waste treatment, controlled landfilling, soil remediation, metal recycling, household appliances recycling, automobile recycling, consulting on environmental matters, and logistics (2) Nonferrous Metals : Production and sale of gold, silver, copper, zinc alloy, lead, platinum, palladium, indium, gallium, germanium, tin, antimony, nickel, bismuth, tellurium, sulfuric acid, and other metals (3) Electronic Materials : Production and sale of high-purity gallium, indium, compound semiconductor wafers, LEDs, Silver powder, Copper powder, Silver oxide powder, Metal powder, Carrier powder, and Ferrite powder (4) Metal Processing : Production and sale of copper, brass, copper alloy strips, nickel alloy strips, reflow tin plated stripes, brass rods, forged brass products, electroplating, and metal-ceramics substrates (5) Heat Treatment : Heat treatment, Surface treatment, design, manufacture, marketing, and maintenance of industrial furnaces and ancillary equipment (6) Others : Plant construction, real estate rental business and others (Note 2) Segment profit (loss) is based on ordinary profit.