Interim report
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( Translation ) Notes : 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 . The Company assumes no responsibility for this translation or for direct , indirect or any other forms of damages arising from the translation . Consolidated Financial Results for the Three Months Ended June 30 , 2026 [ Japanese GAAP ] Company name : Stock code : JAPAN MATERIAL Co. , Ltd. Stock exchange listing : Tokyo and Nagoya Stock Exchanges in Japan 6055 Accounting Standards FASF MEMBERSHIP August 7 , 2026 https://www.j-materials.jp/ Kosuke Tanaka , President and Representative Director , Executive Officer Shinichi Hashimoto , Director and Executive Officer , Administrative Division Director Tel . + 81-59-399-3821 Website : Representative : Contact : Scheduled payment date of cash dividends : Supplemental materials prepared for quarterly financial results : Quarterly IR briefing : None None ( All amounts are rounded down to the nearest million yen ) 1. Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Apr. 1 , 2026 – Jun . 30 , 2026 ) 1.1 Consolidated operating results ( % indicates year - on - year changes ) Profit attributable to owners of parent Net sales Operating profit Ordinary profit Three months ended Jun . 30 , 2026 Jun . 30 , 2025 ¥ million 15,974 13,256 % 20.5 ¥ million 4,741 % ¥ million % 48.6 4,835 56.2 ¥ million 3,311 % 55.1 18.8 3,190 59.4 2,135 38.8 3,096 37.8 ( Note ) Comprehensive income : Three months ended Jun . 30 , 2026 : ¥ 3,541 million , 107.3 % Three months ended Jun . 30 , 2025 : ¥ 1,708 million , ( 10.5 % ) Basic earnings per share Three months ended ¥ Jun . 30 , 2026 Jun . 30 , 2025 32.23 20.78 Diluted earnings per share ¥ 1.2 Consolidated financial position As of Jun . 30 , 2026 As of Mar. 31 , 2026 Total assets Net assets Equity ratio ¥ million ¥ million 75,652 63,540 % 83.2 75,373 63,217 83.1 ( Reference ) Equity : As of Jun . 30 , 2026 : ¥ 62,940 million As of Mar. 31 , 2026 : ¥ 62,644 million
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2. Dividends Annual dividends per share Q1-end Q2-end Q3-end Year- end Total ¥ ¥ ¥ ¥ ¥ FY2025 – 0.00 – 32.00 32.00 FY2026 – FY2026 (forecast) 0.00 – 35.00 35.00 (Note) Changes from the most recently released dividend forecast: None 3. Forecast of Consolidated Financial Results for the FY2026 (Apr. 1, 2026– Mar. 31, 2027) (% indicates year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share ¥ million % ¥ million % ¥ million % ¥ million % ¥ 1st half 29,000 13.0 7,500 23.4 7,500 20.7 5,100 18.8 49.62 Full-year 61,000 5.2 15,500 5.9 15,500 2.5 10,800 2.0 105.08 (Note) Changes from the most recently released financial results forecast: None * Notes 1. Significant changes in the scope of consolidation during the period: None Newly added: - Excluded: - 2. Adoption of special accounting methods for preparing quarterly consolidated financial statements: None 3. Changes in accounting policies and accounting estimates, and restatements a. Changes in accounting policies due to revisions in accounting standards, etc.: None b. Changes in accounting policies other than a. above: None c. Changes in accounting estimates: None d. Restatements: None 4. Number of shares issued (ordinary shares) a. Number of shares issued at the end of the period (including treasury shares) As of Jun. 30, 2026 105,149,520 shares As of Mar. 31, 2026 105,149,520 shares b. Number of treasury shares at the end of the period As of Jun. 30, 2026 2,375,349 shares As of Mar. 31, 2026 2,375,340 shares c. Average number of shares issued and outstanding during the period (cumulative quarterly period) Three months ended Jun. 30, 2026 102,774,178 shares Three months ended Jun. 30, 2025 102,755,080 shares * Quarterly Consolidated Financial Statements reviewed by certified public accountant or an audit firm: None * Notes for proper use of forecasts and other remarks Forecasts contain forward-looking statements based on estimates made as of the day of release of these materials. Actual results may differ materially depending on a number of factors including but not limited to potential risks and uncertainties. Please refer to page 3 “1.3 Future Outlook” for forecast assumptions and notes on usage.
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1 Table of Contents 1. Analysis of Results of Operations and Financial Condition ............................................................................2 1.1 Operating Results ........................................................................................................................................2 1.2 Financial Position ........................................................................................................................................2 1.3 Future Outlook .............................................................................................................................................3 2. Quarterly Consolidated Financial Statements and Major Notes......................................................................4 2.1 Quarterly Consolidated Balance Sheets .......................................................................................................4 2.2 Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .6 Quarterly Consolidated Statements of Income ............................................................................................6 Quarterly Consolidated Statements of Comprehensive Income ..................................................................7 2.3 Notes to Quarterly Consolidated Financial Statements ...............................................................................8 (Notes to Segment Information, etc.) ...........................................................................................................8 (Notes in the Case of Significant Changes in Amount of Shareholders’ Equity) ........................................9 (Going Concern Assumption) ......................................................................................................................9 (Notes to Consolidated Statements of Cash Flows) .....................................................................................9
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2 1. Analysis of Results of Operations and Financial Condition 1.1 Operating Results During the three months ended June 30, 2026, the Japanese economy remained on a modest recovery trend owing to improvements in the employment and income situation. However, the outlook still remains uncertain due to geopolitical risks, including the situat ion in the Middle East, and rising prices resulting from the weakening of the yen. In the industry to which the JAPAN MATERIAL Group (hereinafter the “Group”) belongs, capital investment by semiconductor manufacturers is accelerating amid rising demand for leading -edge semiconductors, driven by expectations of continued strong growth, particularly in generative AI. Under such circumstances, in the Group’s Electronics business, the performance of the divisions engaged in the manufacture of specialty gas supply equipment and the design and construction of supply piping (hereinafter the “initial divisions”), which are driven by capital investment of customers, remained solid due to continued capital investments at semiconductor plants, the main customers. Performance of the divisions engaged in the sales and management of specialty gases and the provision of technical se rvices (hereinafter the “operations divisions”), which are driven by production activity, remained strong, particularly in the sales of specialty gases, the maintenance service for semiconductor manufacturing equipment, and the manufacture and sales of semiconductor manufacturing equipment parts, thanks to a high level of production activity that continued at semiconductor plants, the main customers. In the Graphics Solution business, the performance remained strong, particularly in digital signage products and in graphic and digital video products. In the Solar Power business, we currently operate three solar power plants in Mie Prefecture. As a result, net sales for the current fiscal year were ¥ 15,974 million (up 20.5% year -on-year), with operating profit of ¥4,741 million (up 48.6% year-on-year), ordinary profit of ¥4,835 million (up 56.2 % year- on-year), and profit attributable to owners of parent of ¥3,311 million (up 55.1% year-on-year). 1.1.1 Electronics business Segment net sales were ¥15,490 million (up 20.3% year-on-year) with segment profit of ¥5,008 million (up 43.1% year-on-year). 1.1.2 Graphics Solution business Segment net sales were ¥427 million (up 31.5% year-on-year) with segment profit of ¥46 million (up 19.0% year-on-year) 1.1.3 Solar Power business Segment net sales were ¥ 55 million (down 6.2% year-on-year) with segment profit of ¥ 37 million (down 6.5% year-on-year). 1.2 Financial Position (Assets) Total assets at the end of the first quarter under review amounted to ¥75,652 million, up ¥279 million from the end of the previous fiscal year. This was mainly due to an increase in cash and deposits of ¥2,285 million which were partially offset by a decrease in notes and accounts receivable - trade, and contract assets of ¥2,004 million. (Liabilities) Total liabilities at the end of the first quarter under review amounted to ¥12,112 million, down ¥43 million from the end of the previous fiscal year. This was mainly due to increases in accrued expenses of ¥468 million and retirement benefit liability of ¥267 million which were more than offset by a decrease in income taxes payable of ¥991 million.
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3 (Net assets) Total net assets at the end of the first quarter under review amounted to ¥63,540 million, up ¥322 million from the end of the previous fiscal year. This was attributed mainly to an increase in retained earnings due to the recording of profit attributable to owners of parent of ¥3,311 million, which were partially offset by a decrease caused by the dividend payment of ¥3,288 million. 1.3 Future Outlook No change has bee n made to the forecast of consolidated financial results released in the “Consolidated Financial Results FY2025 dated May 13, 2026”. The forecast of results is based on the information available currently, but there is a possibility that our future business activity and operating results may be affected by such factors as potential changes in the schedule of capital investments by major customers and a potential significant change in the operating rates of customer plants. The impact of the 2026 Kumamoto Earthquake, which occurred on July 28, 2026, on financial results has not been incorporated into the forecast of results, as it is currently difficult to estimate reasonably.
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4 2. Quarterly Consolidated Financial Statements and Major Notes 2.1 Quarterly Consolidated Balance Sheets (Yen in millions) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 21,618 24,444 Notes and accounts receivable - trade, and contract assets 26,084 24,079 Merchandise and finished goods 1,728 2,036 Work in process 2,504 2,679 Raw materials and supplies 3,604 3,467 Other 343 415 Allowance for doubtful accounts (1) (1) Total current assets 55,882 57,122 Non-current assets Property, plant and equipment Buildings and structures, net 10,949 10,785 Other, net 4,034 4,068 Total property, plant and equipment 14,984 14,854 Intangible assets Goodwill 664 641 Other 872 911 Total intangible assets 1,536 1,553 Investments and other assets Lease receivables and investment assets 67 61 Other 3,009 2,166 Allowance for doubtful accounts (108) (103) Total investments and other assets 2,968 2,123 Total non-current assets 19,490 18,530 Total assets 75,373 75,652 Liabilities Current liabilities Notes and accounts payable - trade 4,090 4,096 Accounts payable - other 1,070 1,165 Accrued expenses 1,137 1,606 Income taxes payable 2,784 1,792 Provision for bonuses 725 428 Other 815 1,242 Total current liabilities 10,624 10,333 Non-current liabilities Lease liabilities 158 136 Retirement benefit liability 1,159 1,426 Asset retirement obligations 32 32 Other 180 182 Total non-current liabilities 1,530 1,778 Total liabilities 12,155 12,112
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5 (Yen in millions) As of March 31, 2026 As of June 30, 2026 Net assets Shareholders' equity Share capital 1,317 1,317 Capital surplus 1,869 1,869 Retained earnings 58,824 58,917 Treasury shares (1,002) (1,002) Total shareholders' equity 61,009 61,102 Accumulated other comprehensive income Valuation difference on available-for-sale securities 301 408 Foreign currency translation adjustment 1,393 1,483 Remeasurements of defined benefit plans (59) (53) Total accumulated other comprehensive income 1,635 1,838 Non-controlling interests 573 599 Total net assets 63,217 63,540 Total liabilities and net assets 75,373 75,652
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6 2.2 Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Quarterly Consolidated Statements of Income (Yen in millions) From Apr. 1, 2025 to Jun. 30, 2025 From Apr. 1, 2026 to Jun. 30, 2026 Net sales 13,256 15,974 Cost of sales 8,730 9,839 Gross profit 4,526 6,134 Selling, general and administrative expenses 1,335 1,392 Operating profit 3,190 4,741 Non-operating income Interest income 17 23 Dividend income 5 7 Foreign exchange gains － 52 Rental income 4 3 Subsidy income 3 6 Other 2 4 Total non-operating income 33 98 Non-operating expenses Interest expenses 1 2 Share of loss of entities accounted for using equity method 17 0 Foreign exchange losses 109 － Rental expenses on real estate 0 0 Other 0 0 Total non-operating expenses 128 4 Ordinary profit 3,096 4,835 Extraordinary losses Loss on sale and retirement of non-current assets 4 0 Other － 0 Total extraordinary losses 4 1 Profit before income taxes 3,091 4,833 Income taxes - current 948 1,557 Income taxes - deferred 2 (49) Total income taxes 950 1,507 Profit 2,141 3,325 Profit attributable to non-controlling interests 5 13 Profit attributable to owners of parent 2,135 3,311
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7 Quarterly Consolidated Statements of Comprehensive Income (Yen in millions) From Apr. 1, 2025 to Jun. 30, 2025 From Apr. 1, 2026 to Jun. 30, 2026 Profit 2,141 3,325 Other comprehensive income Valuation difference on available-for-sale securities 5 107 Foreign currency translation adjustment (445) 102 Remeasurements of defined benefit plans, net of tax 7 5 Total other comprehensive income (432) 215 Comprehensive income 1,708 3,541 Comprehensive income attributable to: Owners of parent 1,727 3,514 Non-controlling interests (18) 26
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8 2.3 Notes to Quarterly Consolidated Financial Statements (Notes to Segment Information, etc.) [Segment Information] I. Three months ended June 30, 2025 (From Apr. 1, 2025 to Jun. 30, 2025) 1. Information on the amounts of net sales and profit/loss by reportable segment (Yen in millions) Reportable segments Total Electronics Graphics Solution Solar Power Net sales To external customers 12,871 325 59 13,256 Inter-segment sales or transfers – – – – Total 12,871 325 59 13,256 Segment profit 3,499 38 40 3,578 2. Differences between total profit/loss amounts of reportable segments and amounts presented on the quarterly consolidated statements of income, and details of the differences (reconciliations) (Yen in millions) Profit Amount Reportable segment total 3,578 Corporate expenses (Note) (394) Other 6 Operating profit on quarterly consolidated statements of income 3,190 (Note) Corporate expenses mainly consist of general and administrative expenses not allocated to any reportable segments.
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9 II. Three months ended June 30, 2026 (From Apr. 1, 2026 to Jun. 30, 2026) 1. Information on the amounts of net sales and profit/loss by reportable segment and revenue analysis (Yen in millions) Reportable segments Total Electronics Graphics Solution Solar Power Net sales To external customers 15,490 427 55 15,974 Inter-segment sales or transfers – – – – Total 15,490 427 55 15,974 Segment profit 5,008 46 37 5,092 2. Differences between total profit/loss amounts of reportable segments and amounts presented on the quarterly consolidated statements of income, and details of the differences (reconciliations) (Yen in millions) Profit Amount Reportable segment total 5,092 Corporate expenses (Note) (355) Other 4 Operating profit on quarterly consolidated statements of income 4,741 (Note) Corporate expenses mainly consist of general and administrative expenses not allocated to any reportable segments. (Notes in the Case of Significant Changes in Amount of Shareholders’ Equity) Not applicable (Going Concern Assumption) Not applicable (Notes to Consolidated Statements of Cash Flows) Quarterly consolidated statements of cash flows for the three months en ded June 30, 202 6 have not been prepared. Depreciation (including amortization of intangible assets except for goodwill) and amortization of goodwill for the three months ended June 30, 2026 are as follows. From Apr. 1, 2025 to Jun. 30, 2025 From Apr. 1, 2026 to Jun. 30, 2026 Depreciation ¥279 million ¥329 million Amortization of goodwill ¥35 million ¥36 million