Interim report
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Translation Notice : This document is an excerpt translation of the original Japanese document and is only for reference purposes . In the event of any discrepancy between this translated document and the original Japanese document , the latter shall prevail . Summary of Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( Based on Japanese GAAP ) Company name : Nittoseiko Co. , Ltd . Stock exchange listing : Tokyo Stock code : Representative : 5957 President URL https://www.nittoseiko.co.jp/ Makoto Araga Inquiries : Director , Accounting & Finance Division Scheduled date to file Quarterly Securities Report : Scheduled date to commence dividend payments : Shinichi Matsumoto August 12 , 2026 September 8 , 2026 TEL ( 0773 ) 42-3111 Preparation of supplementary material on quarterly financial results : Holding of quarterly financial results meeting : Yes Yes ( for institutional investors and analysts ) Accounting Financial Ac Standards FASF MEMBERSHIP Foundation August 7 , 2026 1. Consolidated financial results for the six months ended June 30 , 2026 ( from January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Amounts less than one million yen are rounded down ) Percentages indicate year - on - year changes Profit attributable to Six months ended June 30 , 2026 Six months ended June 30 , 2025 Net sales Millions of yen 25,352 23,859 % 6.3 6.5 Operating profit Millions of yen 1,941 1,479 % 31.3 Δ1.0 Ordinary profit Millions of yen % 1,938 37.8 1,406 A12.7 owners of parent Millions of yen % 1,203 41.4 851 A15.5 Earnings per share Diluted earnings per share Yen Yen Six months ended June 30 , 2026 Six months ended June 30 , 2025 33.14 23.48 ( 2 ) Consolidated financial position Total assets Net assets Equity ratio Millions of yen Millions of yen % As of June 30 , 2026 As of December 31 , 2025 2. Cash dividends 57,270 57,673 42,013 64.8 41,002 63.0 Annual dividends per share 1st quarter - end 2nd quarter - end 3rd quarter - end Fiscal year - end Total Yen Yen Yen Year ended December 31 , 2025 Year ending December 31 , 2026 10.00 12.00 Yen 13.00 Yen 23.00 Year ending December 31 , 2026 ( Forecast ) 12.00 24.00 3. Forecast of consolidated financial results for the year ending December 31 , 2026 ( from January 1 , 2026 to December 31 , 2026 ) Percentages indicate year - on - year changes Net sales Operating profit Ordinary profit Full year Millions of yen 52,000 % Millions of yen 3.5 3,800 % Millions of yen 10.7 3,800 % 11.5 Profit attributable to owners of parent Millions of yen 2,300 Earnings per share % 6.9 Yen 63.29
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2 4. Notes (1) Changes in significant subsidiaries during the six months ended June 30, 2026 (changes in specified subsidiaries resulting in the change in scope of consolidation): No (2) Application of special accounting methods for preparing quarterly consolidated financial statements: No (3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: No Changes in accounting policies due to other reasons: No Changes in accounting estimates: No Restatement of prior period financial statements: No (4) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 39,985,017 shares As of December 31, 2025 39,985,017 shares Number of treasury shares at the end of the period As of June 30, 2026 3,641,867 shares As of December 31, 2025 3,682,982 shares Average number of shares during the period (cumulative from the beginning of the fiscal year) Six months ended June 30, 2026 36,304,708 shares Six months ended June 30, 2025 36,250,789 shares
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3 Overview of Financial Performance Overview of Operating Results During the interim consolidated accounting period, the Japanese economy remained on a moderate recovery path, supported by improved corporate earnings and favorable employment and income conditions. In the global economy, although China experienced a gradual slowdown, a gradual recovery continued in other countries and regions. On the other hand, the outlook remained uncertain due to the impact of developments in the Middle East. Under these business conditions, the Group launched its new medium-term management plan, “Mission G-final,” at the beginning of the current fiscal year. In the first year of the plan, under the theme of “2026: Accelerating Earnings Power through Innovation,” the Group has been promoting initiatives based on four growth strategies: business expansion, environmental sustainability, human capital, and finance. As a result, net sales amounted to ¥25,352 million, up 6.3% from the same period of the previous fiscal year, operating profit amounted to ¥1,941 million, up 31.3%, ordinary profit amounted to ¥1,938 million, up 37.8%, and interim profit attributable to owners of parent amounted to ¥1,203 million, up 41.4%, all compared with the same period of the previous fiscal year. An overview of each segment is provided below. For further details, please refer to the “Quarterly Report Q2 for the fiscal year ending December 2026” released on August 7, 2026. Regarding this business, in the automotive industry, sales of proprietary products for ADAS (Advanced Driver Assistance Systems), mainly in Japan, remained strong, and two subsidiaries in India continued to contribute to business performance following the first quarter. While demand for precision screws for game consoles showed signs of softening, demand for electronic device-related products in Southeast Asia remained strong, supported by production shifts from China, resulting in increases in both sales and profits. As a result, net sales amounted to ¥18,981 million, up 7.1% from the same period of the previous fiscal year, and operating profit amounted to ¥1,334 million, up 50.5% from the same period of the previous fiscal year. Regarding this business, in the automotive industry, demand for large-scale equipment projects showed a declining trend against the backdrop of a global slowdown in the EV market and a decrease in the number of model changes in Japan. However, demand was supported by screw
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4 tightening machines for ADAS-related equipment assembly lines and screw tightening machines for overseas markets. In addition, demand from data centers, driven by growing AI-related needs, remained strong. As a result, net sales amounted to ¥2,923 million, up 4.8% from the same period of the previous fiscal year, and operating profit amounted to ¥446 million, up 6.8% from the same period of the previous fiscal year. Regarding this business, sales of flow meters for the shipbuilding industry and data centers remained strong. In addition, while securing a large-scale order for elemental analyzers in India contributed to sales, sales of labor-saving equipment and evaluation systems for the automotive industry increased. On the other hand, rising costs of raw materials, components, and logistics continued to put pressure on profit margins. In response, we promoted cost reduction initiatives and worked to maintain and improve profitability. As a result, net sales amounted to ¥3,392 million, up 3.2% from the same period of the previous fiscal year, and operating profit amounted to ¥222 million, down 3.4% from the same period of the previous fiscal year. Regarding this business, we obtained a patent in the Kingdom of Thailand, a leading country in medical care, for the "high-purity bio-soluble magnesium material for medical use," while continuing our efforts toward commercialization. In addition, following the acquisition of a license for the manufacture and sale of medical devices, we advanced initiatives to secure contract manufacturing projects by leveraging our medical device development capabilities. As a result, net sales amounted to ¥54 million, down 1.2% from the same period of the previous fiscal year, and operating profit amounted to ¥62 million, compared with an operating loss of ¥56 million in the same period of the previous fiscal year.
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5 Consolidated financial statements Consolidated balance sheets (Thousands of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 10,493,823 10,728,914 Notes and accounts receivable - trade 8,063,746 7,277,598 Electronically recorded monetary claims - operating 4,414,207 4,336,795 Merchandise and finished goods 4,897,584 5,237,355 Work in process 2,896,956 3,103,420 Raw materials and supplies 3,958,546 4,046,917 Accounts receivable - other 675,313 371,588 Other 470,773 (20,468) 372,521 Allowance for doubtful accounts (20,617) Total current assets 35,850,482 35,454,494 Non-current assets Property, plant and equipment Buildings and structures, net 4,120,008 4,457,442 Machinery, equipment and vehicles, net 3,419,359 3,287,195 Land 6,423,822 6,400,339 Construction in progress 1,128,793 810,418 Other, net 569,392 587,324 Total property, plant and equipment 15,661,376 15,542,719 Intangible assets Software 315,731 303,355 Goodwill 453,859 392,091 Customer related assets 159,715 164,850 Technology related assets 124,950 110,250 Other 28,557 36,565 Total intangible assets 1,082,814 1,007,112 Investments and other assets Investment securities 697,275 733,376 Deferred tax assets 563,217 538,634 Retirement benefit asset 3,293,620 3,452,804 Other 525,306 542,384 Allowance for doubtful accounts (1,000) (1,000) Total investments and other assets 5,078,420 5,266,199 Total non-current assets 21,822,611 21,816,031 Total assets 57,673,093 57,270,525
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6 (Thousands of yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 3,743,573 3,937,623 Electronically recorded obligations - operating 3,357,846 2,217,239 Short-term borrowings 1,714,532 1,271,314 Accounts payable - other 381,576 398,564 Income taxes payable 743,848 634,833 Provision for bonuses 220,411 364,337 Other 1,671,695 1,952,975 Total current liabilities 11,833,484 10,776,888 Non-current liabilities Long-term borrowings 962,311 696,439 Provision for directors' retirement benefits 92,427 90,161 Provision for share-based remuneration for directors (and other officers) 116,091 135,094 Provision for Share-based Compensation 36,369 51,770 Deferred tax liabilities 1,257,954 1,220,299 Retirement benefit liability 1,818,121 1,932,165 Other 553,849 354,382 Total non-current liabilities 4,837,125 4,480,313 Total liabilities 16,670,610 15,257,202 Net assets Shareholders' equity Share capital 3,522,580 3,522,580 Capital surplus 2,767,848 2,804,439 Retained earnings 29,441,150 30,165,383 Treasury shares (1,746,716) (1,752,090) Total shareholders' equity 33,984,862 34,740,312 Accumulated other comprehensive income Valuation difference on available-for-sale securities 168,299 200,708 Foreign currency translation adjustment 932,898 978,626 Remeasurements of defined benefit plans 1,223,673 1,166,314 Total accumulated other comprehensive income 2,324,871 2,345,649 Non-controlling interests 4,692,749 4,927,362 Total net assets 41,002,483 42,013,323 Total liabilities and net assets 57,673,093 57,270,525
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7 Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative) Consolidated statements of income (cumulative) (Thousands of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Net sales 23,859,374 25,352,168 Cost of sales 18,082,621 19,085,277 Gross profit 5,776,753 6,266,890 Selling, general and administrative expenses 4,297,424 4,325,230 Operating profit 1,479,328 1,941,660 Non-operating income Interest income 20,601 26,570 Dividend income 5,613 4,242 Rental income 41,318 25,222 Foreign exchange gains － 11,096 Other 94,982 83,183 Total non-operating income 162,516 150,315 Non-operating expenses Interest expenses 27,901 59,949 Rental costs 37,775 28,987 Foreign exchange losses 114,170 － Other 55,801 64,982 Total non-operating expenses 235,647 153,919 Ordinary profit 1,406,197 1,938,056 Extraordinary income Gain on sales of non-current assets 160,075 5,619 Gain on sales of investment securities － 48,389 Total extraordinary income 160,075 54,009 Extraordinary losses Loss on disposal of non-current assets 22,111 206 Total extraordinary losses 22,111 206 Profit before income taxes 1,544,160 1,991,859 Income taxes - current 541,170 597,461 Income taxes - deferred 44,506 3,307 Total income taxes 585,676 600,768 Profit 958,483 1,391,090 Profit attributable to non-controlling interests 107,320 187,781 Profit attributable to owners of parent 851,162 1,203,309
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8 Consolidated statements of comprehensive income (cumulative) (Thousands of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Profit 958,483 1,391,090 Other comprehensive income Valuation difference on available-for-sale securities 32,557 32,737 Foreign currency translation adjustment (537,592) 156,594 Remeasurements of defined benefit plans, net of tax (27,763) (57,359) Total other comprehensive income (532,798) 131,973 Comprehensive income 425,685 1,523,063 Comprehensive income attributable to Comprehensive income attributable to owners of parent 410,845 1,224,086 Comprehensive income attributable to non-controlling interests 14,840 298,976
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9 Consolidated statements of cash flows (Thousands of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 1,544,160 1,991,859 Depreciation 681,990 736,888 Increase (decrease) in provision for bonuses 98,434 143,540 Increase (decrease) in retirement benefit liability (925) 60,663 Decrease (increase) in retirement benefit asset (78,146) (159,184) Interest and dividend income (26,215) (30,813) Interest expenses 27,901 59,949 Loss (gain) on sales of investment securities － (48,389) Loss (gain) on disposal of non-current assets 22,111 206 Loss (gain) on sales of non-current assets (160,075) (5,619) Decrease (increase) in trade receivables 1,892,301 915,850 Decrease (increase) in inventories (482,082) (627,755) Increase (decrease) in trade payables (1,731,693) (991,075) Increase (decrease) in accrued consumption taxes (165,940) (2,939) Increase (decrease) in accrued expenses 456,262 417,246 Other, net 125,303 93,949 Subtotal 2,203,387 2,554,377 Interest and dividends received 26,835 33,548 Interest paid (30,020) (62,505) Income taxes paid (629,258) (704,316) Net cash provided by (used in) operating activities 1,570,943 1,821,103 Cash flows from investing activities Payments into time deposits (255,017) (262,245) Proceeds from withdrawal of time deposits 66,210 106,060 Purchase of property, plant and equipment (838,890) (532,976) Proceeds from sales of property, plant and equipment 270,843 6,512 Payments for retirement of property, plant and equipment (22,111) (206) Purchase of investment securities (3,159) (2,676) Proceeds from sales of investment securities － 67,404 Proceeds from redemption of investment securities 150,000 － Purchase of shares of subsidiaries resulting in change in scope of consolidation (1,565,751) － Other, net (83,730) (57,652) Net cash provided by (used in) investing activities (2,281,607) (675,779)
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10 (Thousands of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from financing activities Net increase (decrease) in short-term borrowings 931,759 (586,150) Repayments of long-term borrowings (115,747) (118,572) Proceeds from sales of treasury shares 32,058 90,482 Purchase of treasury shares (169) (59,265) Dividends paid (368,523) (479,076) Dividends paid to non-controlling interests (91,750) (64,364) Other, net (2,639) (7,078) Net cash provided by (used in) financing activities 384,986 (1,224,025) Effect of exchange rate change on cash and cash equivalents (144,588) 132,031 Net increase (decrease) in cash and cash equivalents (470,265) 53,330 Cash and cash equivalents at beginning of period 9,604,647 9,430,124 Cash and cash equivalents at end of period 9,134,381 9,483,454
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11 (Segment Information) 1．Six Months Ended June 30, 2025 (From January 1, 2025 to June 30, 2025) Information concerning net sales and profit or loss by reporting segment (Thousands of yen) Notes: Segment profit is adjusted for operating income reported in the consolidated statements of income. 2．Six Months Ended June 30, 2026 (From January 1, 2026 to June 30, 2026) Information concerning net sales and profit or loss by reporting segment (Thousands of yen) Notes: Segment profit is adjusted for operating income reported in the consolidated statements of income. Reportable segments Consolidated Fastener Assembly Machine Control System Medical Total Net sales Sales to external customers Intersegment sales and transfers 17,727,089 2,788,554 3,288,622 55,109 23,859,374 23,859,374 － － － － － － Total 17,727,089 2,788,554 3,288,622 55,109 23,859,374 23,859,374 Segment profit (loss) 887,183 418,468 230,075 (56,399) 1,479,328 1,479,328 Reportable segments Consolidated Fastener Assembly Machine Control System Medical Total Net sales Sales to external customers Intersegment sales and transfers 18,981,998 2,923,365 3,392,364 54,440 25,352,168 25,352,168 － － － － － － Total 18,981,998 2,923,365 3,392,364 54,440 25,352,168 25,352,168 Segment profit (loss) 1,334,943 446,899 222,189 (62,372) 1,941,660 1,941,660