Interim report
Page 1
DISCLAIMER : This document has been translated from a part of 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 . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) Company name : NPR - RIKEN CORPORATION Tokyo Stock Exchange https://www.npr-riken.co.jp/ Listing : Securities code : 6209 URL : Representative : Inquiries : Telephone : Yasunori Maekawa , Representative Director , Chairman and CEO Takuya Ohashi , General Manager Accounting & Finance Division + 81-3-6899-1871 Scheduled date to commence dividend payments : August 7 , 2026 Preparation of supplementary material on financial results : Holding of financial results briefing : None None ( 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 Net sales Operating profit Ordinary profit parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30 , 2026 40,310 1.4 1,572 ( 51.9 ) 2,805 ( 35.7 ) 3,071 ( 5.0 ) June 30 , 2025 39,745 ( 3.3 ) 3.269 23.9 4,363 11.4 3,233 31.6 Note : Comprehensive income For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : Basic earnings per share ¥ 9,357 million ¥ ( 669 ) million [ - % ] [ - % ] Diluted earnings per share Three months ended June 30 , 2026 June 30 , 2025 Yen Yen 114.17 113.96 120.33 120.09 ( 2 ) Consolidated financial position As of June 30 , 2026 March 31 , 2026 Reference : Equity Total assets Millions of yen 245,171 228,954 As of June 30 , 2026 : As of March 31 , 2026 : ¥ 165,378 million ¥ 160,287 million 2 . Cash dividends Fiscal year ended March 31 , 2026 Fiscal year ending March 31 , 2027 Fiscal year ending March 31 , 2027 ( Forecast ) Net assets Equity - to - asset ratio Millions of yen % 174,413 67.5 70.0 169,673 Annual dividends per share First quarter - end Second quarter - end Third quarter - end Fiscal year - end Total Yen Yen Yen Yen Yen 160.00 210.00 50.00 Note : Revisions to the forecast of cash dividends most recently announced : None 80.00 130.00 210.00
Page 2
3. Forecast of consolidated financial results for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (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, 2027 162,000 (0.7) 10,000 (22.2) 13,500 (22.2) 9,000 (35.8) 334.64 Note: 1. Revisions to the earnings forecasts most recently announced: None 2. The average number of shares issued during the period (excluding treasury shares) as of March 31, 2026 is used for the ave rage number of shares during the period, which is the basis for calculating "net income per share." * Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None (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: Yes (iii) Changes in accounting estimates: Yes (iv) Restatement: None Note: The depreciation method has been changed since the first quarter of the current fiscal year, and this applies to cases where it is difficult to distinguish a change in accounting policy from a change in accounting estimates. For details, please refer to Appendix P.8 "2. Quarterly Consolidated Financial Statements and Key Notes (3) Notes on Quarterly Consolidated Financial Statements (Changes in Accounting Policies That Are Difficul t to Distinguish from Changes in Accounting Estimates)" (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 28,247,910 shares As of March 31, 2026 28,247,910 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 1,329,459 shares As of March 31, 2026 1,344,635 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 26,904,889 shares Three months ended June 30, 2025 26,868,824 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm:None * Proper use of earnings forecasts, and other special matters • The forward-looking statements, including forecasts of financial results, contained in these materials are based on information available to the Company and on certain assumptions deemed to be reasonable. Actual financial results may differ from the results anticipated in the statements due t o various factors. (Other special notes) The Company plans to disclose its quarterly financial results with the review report attached on August 10, 2026, following t he completion of the review by Deloitte Touche Tohmatsu LLC.
Page 3
Quarterly consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 29,105 40,798 Notes and accounts receivable - trade, and contract assets 36,874 37,659 Merchandise and finished goods 24,211 25,851 Work in process 7,143 5,972 Raw materials and supplies 7,484 7,420 Other 4,306 4,732 Allowance for doubtful accounts (2) (10) Total current assets 109,124 122,423 Non-current assets Property, plant and equipment Buildings and structures, net 16,357 16,380 Machinery, equipment and vehicles, net 17,458 17,291 Land 8,926 8,934 Construction in progress 2,803 3,027 Other, net 3,538 3,526 Total property, plant and equipment 49,084 49,160 Intangible assets Leased assets 438 347 Goodwill 2,296 2,232 Customer-related intangible assets 1,556 1,526 Technology-related intangible assets 1,780 1,746 Other 2,158 2,380 Total intangible assets 8,230 8,232 Investments and other assets Investment securities 45,764 47,413 Deferred tax assets 1,759 2,629 Retirement benefit asset 13,345 13,503 Other 1,708 1,851 Allowance for doubtful accounts (62) (42) Total investments and other assets 62,515 65,353 Total non-current assets 119,830 122,747 Total assets 228,954 245,171
Page 4
(Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 10,455 11,349 Electronically recorded obligations - operating 4,236 3,253 Short-term borrowings 762 12,907 Current portion of long-term borrowings 6,705 6,585 Income taxes payable 2,405 1,124 Provision for bonuses 2,934 2,129 Other 9,717 10,968 Total current liabilities 37,215 48,318 Non-current liabilities Long-term borrowings 6,600 6,300 Retirement benefit liability 3,434 3,536 Provision for product warranties 255 255 Provision for retirement benefits for directors (and other officers) 204 197 Deferred tax liabilities 8,382 9,178 Other 3,188 2,972 Total non-current liabilities 22,065 22,439 Total liabilities 59,281 70,758 Net assets Shareholders' equity Share capital 5,212 5,212 Capital surplus 25,480 25,480 Retained earnings 105,860 104,609 Treasury shares (3,768) (3,724) Total shareholders' equity 132,785 131,577 Accumulated other comprehensive income Valuation difference on available-for-sale securities 8,845 10,817 Deferred gains or losses on hedges (16) (7) Foreign currency translation adjustment 12,230 16,708 Revaluation reserve for land 3 3 Remeasurements of defined benefit plans 6,439 6,278 Total accumulated other comprehensive income 27,502 33,800 Share acquisition rights 92 66 Non-controlling interests 9,293 8,968 Total net assets 169,673 174,413 Total liabilities and net assets 228,954 245,171
Page 5
Quarterly consolidated statement of income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 39,745 40,310 Cost of sales 29,379 29,815 Gross profit 10,366 10,494 Selling, general and administrative expenses 7,097 8,922 Operating profit 3,269 1,572 Non-operating income Interest and dividend income 506 645 Foreign exchange gains 62 5 Share of profit of entities accounted for using equity method 536 525 Other 135 189 Total non-operating income 1,241 1,366 Non-operating expenses Interest expenses 41 86 Other 105 46 Total non-operating expenses 146 133 Ordinary profit 4,363 2,805 Extraordinary income Gain on sale of non-current assets 1 1 Gain on sale of investment securities - 583 Total extraordinary income 1 584 Extraordinary losses Loss on retirement of non-current assets 22 8 Impairment losses 100 10 Business restructuring expenses - 35 Total extraordinary losses 122 54 Profit before income taxes 4,242 3,335 Income taxes - current 804 1,262 Income taxes - deferred 140 (986) Total income taxes 944 276 Profit 3,297 3,058 Profit (loss) attributable to non-controlling interests 64 (12) Profit attributable to owners of parent 3,233 3,071
Page 6
Quarterly consolidated statement of comprehensive income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 3,297 3,058 Other comprehensive income Valuation difference on available-for-sale securities 107 1,767 Deferred gains or losses on hedges (14) 9 Foreign currency translation adjustment (3,200) 5,357 Remeasurements of defined benefit plans, net of tax (188) (160) Share of other comprehensive income of entities accounted for using equity method (671) (675) Total other comprehensive income (3,967) 6,298 Comprehensive income (669) 9,357 Comprehensive income attributable to Comprehensive income attributable to owners of parent (430) 9,294 Comprehensive income attributable to non -controlling interests (239) 62
Page 7
(Notes on segment information, etc.) Segment Information I. The three months of the previous fiscal year (April 1, 2025 to June 30, 2025) 1. Information on sales and the amount of profit or loss for each reported segment (Millions of yen) Reportable segments Other (Note) 1 Total Adjustment Amount (Note) 2 Quarterly Consolidated Statements of Income (Note)3 Piston Ring Business Precision Components and Casting Components Business Piping Components Business Semiconductor and Electronics Related Business Sales Revenues from external customers 16,114 14,595 4,420 2,892 1,723 39,745 - 39,745 Transactions with other segments 25 6 - 0 640 672 (672) - Total 16,139 14,601 4,420 2,892 2,363 40,418 (672) 39,745 Segment Profit 1,677 1,020 323 278 104 3,405 (135) 3,269 Note: 1. The "Other" category is a business segment that is not included in the reporting segments and includes products, etc . 2. Adjustments to segment profit are due to the elimination of inter-segment transactions, etc. 3. Segment profit is adjusted to operating income in the quarterly consolidated statements of income. 2. Information on impairment losses or goodwill on fixed assets by reporting segment (Significant impairment loss on fixed assets) In the Precision Components and Casting Components Business, we recorded an impairment loss on the automotive product manufacturing facilities of NPR-RIKEN CASTEC CORPORATION and NPR-RIKEN PRECISION CORPORATION due to a decline in profitability due to changes in the business environment. The amount of the impairment loss recorded was 100 million yen in the three months of the current fiscal year. II. The three months of the current fiscal year (April 1, 2026 to June 30, 2026) 1. Information on sales and the amount of profit or loss for each reported segment (Millions of yen) Reportable segments Other (Note) 1 Total Adjustment Amount (Note) 2 Quarterly Consolidated Statements of Income (Note)3 Piston Ring Business Precision Components and Casting Components Business Piping Components Business Semiconductor and Electronics Related Business Sales Revenues from external customers 13,975 15,472 4,168 3,908 2,786 40,310 - 40,310 Transactions with other segments 44 47 - 2 367 461 (461) - Total 14,020 15,519 4,168 3,910 3,153 40,771 (461) 40,310 Segment Profit 1,213 291 2 380 (326) 1,561 10 1,572 Note: 1. The "Other" category is a business segment that is not included in the reporting segments and includes products, etc . 2. Adjustments to segment profit are due to the elimination of inter-segment transactions, etc. 3. Segment profit is adjusted to operating income in the quarterly consolidated statements of income. 2. Changes to Reporting Segments, etc. (Change of Reporting Segment) The classification of reporting segments has been changed in accordance with the comprehensive reorganization of the Group th at began in the three months of the current fiscal year. In light of the expansion of the business scale and the enhancement of man agement resources through the business integration, we have eliminated the conventional vertical business lines of the former Riken and NPR, and introduced a business unit system based on strategic business units. Under the new structure, the Group's business will be divided into six business divisions: Piston Rings, Marine & Industrial Applications, Precision Machinery Components, Casting Components, Piping Equipment, and Semiconductor & Electronics. As a result, the composition of the reporting segments is as follows. The segment information for the three months of the pre vious fiscal year is based on the classification of the reporting segment after the change. Piston Ring Business "Piston Ring Business Unit" and "Marine & Industrial Components Business Unit" Precision Components and Casting Components Business "Precision Components Business Unit" and "Casting Components Business Unit" Piping Components Business "Piping Components Business Unit" Semiconductor and Electronics Related Business "Semiconductor & Electronics Related Business Unit" (Change in Depreciation Method of Property, Plant and Equipment) In the past, the depreciation method of property, plant and equipment of some domestic subsidiaries was mainly based on the declining-balance method (excluding buildings acquired on or after April 1, 1998 (excluding building ancillary equipment) and building ancillary equipment and structures acquired o n or after April 1, 2016), but from the current fiscal year, the straight-line method was changed for all property, plant and equipment. As a result of this change in the depreciation method, segment profit for the three months of the current fiscal year increas ed by 35 million yen in the Piston Rings Business, 9 million yen in the Precision Components and Casting Components Business, 4 million yen in the Semiconductor and Electronics Related Business, and 1 million yen in the Other Business. 3. Information on impairment losses or goodwill on fixed assets by reporting segment (Significant impairment loss on fixed assets) In the Precision Components and Casting Components Business, we recorded an impairment loss on the automotive product manufacturing facilities of NPR-RIKEN CASTEC CORPORATION due to a decline in profitability due to changes in the business environment. The amount of the impairment loss recorded was 10 million yen in the three months of the current fiscal year.