Interim report
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Note : 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 . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) Company name : CKD Corporation Listing : Tokyo Stock Exchange , Nagoya Stock Exchange Securities code : 6407 URL : https://www.ckd.co.jp/en/ Representative : Katsuhito Okuoka Inquiries : Kazuhide Yoshikawa Representative Director President & CEO Corporate Officer General Manager , Accounting Dept Telephone : + 81-568-74-1006 August 10 , 2026 FASF Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Yes Holding of financial results briefing : Yes ( for institutional investors and analysts ) ( 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 . ) Three months ended June 30 , 2026 Net sales Millions of yen 49,108 Operating profit % Millions of yen % 35.5 8,032 June 30 , 2025 Note : Comprehensive income 36,253 ( 4.8 ) 3,772 112.9 ( 13.6 ) Ordinary profit Millions of yen 8,242 Profit attributable to owners of parent % Millions of yen % 122.5 5,686 129.5 3,704 ( 18.5 ) 2,477 ( 19.1 ) For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : ¥ 10,207 million 213.0 % ] ¥ 3,260 million ( 26.3 ) % ] Basic earnings per share Diluted earnings per share Three months ended June 30 , 2026 June 30 , 2025 ( 2 ) Consolidated Financial Position Yen Yen 85.09 37.09 As of June 30 , 2026 March 31 , 2026 Reference : Equity Total assets Net assets Equity - to - asset ratio Millions of yen 241,918 Millions of yen % 226,721 160,470 153,538 66.3 67.7 As of June 30 , 2026 : As of March 31 , 2026 : ¥ 160,470 million ¥ 153,538 million
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2. Cash Dividends Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 － 32.00 － 49.00 81.00 Fiscal year ending March 31, 2027 － Fiscal year ending March 31, 2027 (Forecast) － － － 112.00 Note: Revisions to the forecast of cash dividends most recently announced: Yes Interim and year-end dividends for the fiscal year ending March 31, 2027 have not been determined yet. 3. Consolidated Financial Result Forecasts 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 Full year 193,000 22.2 28,500 45.1 28,500 43.5 19,000 39.9 284.29 Note: Revisions to the financial result forecast most recently announced: Yes * 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: 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 67,909,449 shares As of March 31, 2026 67,909,449 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 1,075,477 shares As of March 31, 2026 1,074,438 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 66,834,384 shares Three months ended June 30, 2025 66,801,145 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 performance forecasts and other forward-looking statements presented in this report are based on information currently available and certain assumptions deemed to be reasonable. Actual performance, etc. may differ substantially due to various factors. For the special instructions regarding the appropriate use of financial forecasts, refer to "1. Overview of Business Results (3) Consolidated Financial Forecasts and Outlook" on page 3 of the attached materials. CKD Corporation (the Company) is planning to hold a briefing session for institutional investors and analysts on the web conference on August 10, 2026. Any explanatory materials used in this session will be posted on the Company's website immediately afterward.
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1 Table of Contents of Supplementary Materials 1. Overview of Business Results ....................................................................................................................... 2 (1) Overview of Operating Results for the Three Months Ended June 30, 2026 .......................................... 2 (2) Overview of Financial Position for the Three Months Ended June 30, 2026........................................... 2 (3) Consolidated Financial Forecasts and Outlook ........................................................................................ 3 2. Quarterly Consolidated Financial Statements ................................................................................................ 4 (1) Quarterly Consolidated Balance Sheets ................................................................................................... 4 (2) Quarterly Consolidated Statements of Income and Comprehensive Income ........................................... 6 Quarterly Consolidated Statements of Income for the Three Months Ended June 30, 2026 ................... 6 Quarterly Consolidated Statements of Comprehensive Income for the Three Months Ended June 30, 2026 ............................................................................................. 7 (3) Notes to the Consolidated Financial Statements ...................................................................................... 8 Notes regarding assumptions as a going concern ..................................................................................... 8 Notes regarding any major change in the amount of consolidated shareholders’equity ......................... 8 Notes on Segment information,etc. .......................................................................................................... 8 Notes on Cash Flow Statement ................................................................................................................ 9 3. Others ............................................................................................................................................................. 9 Production, orders and sales ........................................................................................................................... 9
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2 1. Overview of Business Results (1) Overview of Operating Results for the Three Months Ended June 30, 2026 [1] Overview of the Three Months Ended June 30, 2026 During the three months ended June 30, 2026, the global economy remained uncertain due to ongoing concerns over rising geopolitical risk stemming from heightened tensions in the Middle East, as well as the impact of interest rate and foreign exchange rate fluctuations and policy developments in various countries on economic activity. In Japan, capital investment expanded due to robust demand for generative AI-related products, driving growth in the semiconductor-related and machine tool markets. In the pharmaceutical market, a certain level of capital investment continued against the backdrop of persistent supply shortages. Meanwhile, in the automotive-related and rechargeable battery markets, capital investment remained cautious. In the overseas economy, in China, capital investment in equipment related to rechargeable batteries remained strong, in addition to efforts to produce semiconductors and semiconductor manufacturing equipment domestically. In other regions, capital investment in the semiconductor-related market also continued. Under such circumstances, the CKD Group has established a global production and supply system to strengthen its capabilities in growth markets and has worked to secure firm orders. As a result, the CKD Group’s results for the three months ended June 30, 2026 were 49,108 million yen in net sales (up 35.5% year on year), 8,032 million yen in operating profit (up 112.9% year on year), 8,242 million yen in ordinary profit (up 122.5% year on year), and 5,686 million yen in profit attributable to owners of parent (up 129.5% year on year). [2] Segment Overview <Automatic Machinery> In the pharmaceutical market, while a certain level of capital investment continued against the backdrop of persistent supply shortages, sales of pharmaceutical packaging machines temporarily declined. Consequently, our efforts were focused on expanding the packaging service business, primarily maintenance and modification of packaging machines. In addition, sales of lithium-ion battery manufacturing systems fell as Japanese automobile manufacturers continued to adopt a cautious approach towards capital investment in facilities for BEVs. On the other hand, profit margin improved as a result of continued efforts to expand the packaging service business and increase productivity. As a result, net sales were 3,036 million yen (down 33.5% year on year), and segment profit was 738 million yen (down 26.3% year on year). <Components> In Japan, in the semiconductor-related market, growing demand for generative AI drove capital investment, leading to a substantial increase in sales of semiconductor manufacturing equipment. Meanwhile, sales in the automotive-related market declined as capital investment by automakers fell short of expectations. Overseas, in China, sales in the rechargeable battery market, in addition to semiconductor-related components, remained steady, and in other regions as well, sales increased, driven by demand fueled by strong capital investment in the semiconductor-related market. As a result, net sales were 46,072 million yen (up 45.4% year on year), and segment profit was 8,751 million yen (up 112.4% year on year). (2) Overview of Financial Position for the Three Months Ended June 30, 2026 Total assets at the end of the 1st quarter on the consolidated basis were 241,918 million yen, up 15,197 million yen from the end of the previous consolidated fiscal year. This was mainly due to increases of 2,779 million yen in electronically recorded monetary claims – operating, 1,296 million yen in merchandise and finished goods, 5,166 million yen in raw materials and supplies, and 5,159 million yen in investment securities included in investments and other assets.
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3 Liabilities were 81,448 million yen, up 8,264 million yen from the end of the previous consolidated fiscal year. This was mainly due to a increase of 1,969 million yen in notes and accounts payable – trade, 1,432 million yen in electronically recorded obligations – operating, 1,813 million yen in provision for bonuses, 978 million yen in advances received included in other, current liabilities and 1,125 million yen in deferred tax liabilities included in other, non-current liabilities. Net assets were 160,470 million yen, up 6,932 million yen from the end of the previous consolidated fiscal year. Equity-to-asset ratio was 66.3%, down a 1.4 point from the previous consolidated fiscal year. (3) Consolidated Financial Forecasts and Outlook The consolidated financial forecasts for the fiscal year ending March 31, 2027 announced on May 15, 2026 have been revised upward as below. This decision is based on the fact that demand in the semiconductor-related market within the Components segment significantly exceeded initial projections during the three months ended June 30, 2026, as well as an assessment of current order trends. The exchange rate is estimated at USD1:JPY151. Revisions in the forecast of consolidated performance for the full fiscel year (April 1, 2026 to March 31, 2027) Net sales Operating profit Ordinary Profit Profit attributable to owners of parent Previous forecast (A) Million yen 180,000 Million yen 24,500 Million yen 24,500 Million yen 16,300 Revised forecast (B) 193,000 28,500 28,500 19,000 Change (B-A) 13,000 4,000 4,000 2,700 Percentage Change 7.2 16.3 16.3 16.6 For reference:Previous Performance (Through the full fiscal year ended March 31, 2026) 157,886 19,640 19,867 13,578 These forecasts are based on information available as of this release. The actual results may differ due to various factors from now onwards. These revised forecasts are mentioned in "Notice of Revisions in Consolidated Financial Forecasts for the Full Fiscal Year and Revisions of Year-end Dividends Forecast", announced on August 10, 2026.
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4 2. Quarterly Consolidated Financial Statements (1) Quarterly Consolidated Balance Sheets (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 42,839 42,492 Notes and accounts receivable - trade, and contract assets 34,094 35,525 Electronically recorded monetary claims - operating 12,163 14,942 Trade accounts receivable 169 174 Merchandise and finished goods 10,793 12,090 Work in process 5,094 5,359 Raw materials and supplies 36,609 41,775 Other 2,706 2,203 Allowance for doubtful accounts (35) (42) Total current assets 144,435 154,521 Non-current assets Property, plant and equipment Buildings and structures, net 32,787 32,482 Other, net 26,932 27,192 Total property, plant and equipment 59,719 59,674 Intangible assets 1,258 1,215 Investments and other assets 21,307 26,507 Total non-current assets 82,286 87,397 Total assets 226,721 241,918
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5 (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 9,775 11,744 Electronically recorded obligations - operating 4,636 6,069 Short-term borrowings 5,136 5,123 Current portion of long-term borrowings 6,134 6,144 Income taxes payable 3,715 3,523 Provision for bonuses 620 2,433 Other provisions 649 656 Other 11,460 13,839 Total current liabilities 42,129 49,534 Non-current liabilities Long-term borrowings 22,290 21,975 Other provisions 2 2 Retirement benefit liability 618 634 Other 8,143 9,301 Total non-current liabilities 31,054 31,913 Total liabilities 73,183 81,448 Net assets Shareholders' equity Share capital 11,016 11,016 Capital surplus 16,791 16,791 Retained earnings 106,268 108,679 Treasury shares (757) (757) Total shareholders' equity 133,318 135,729 Accumulated other comprehensive income Valuation difference on available-for-sale securities 6,040 9,576 Foreign currency translation adjustment 11,355 12,393 Remeasurements of defined benefit plans 2,824 2,771 Total accumulated other comprehensive income 20,219 24,741 Total net assets 153,538 160,470 Total liabilities and net assets 226,721 241,918
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6 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income for the Three Months Ended June 30, 2026 (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales 36,253 49,108 Cost of sales 25,705 33,541 Gross profit 10,547 15,566 Selling, general and administrative expenses 6,775 7,534 Operating profit 3,772 8,032 Non-operating income Interest income 30 54 Dividend income 121 154 Gain on valuation of derivatives 8 5 Foreign exchange gains - 2 Other 106 149 Total non-operating income 267 367 Non-operating expenses Interest expenses 130 125 Foreign exchange losses 149 - Other 55 32 Total non-operating expenses 335 157 Ordinary profit 3,704 8,242 Extraordinary income Gain on sale of investment securities - 19 Total extraordinary income - 19 Profit before income taxes 3,704 8,261 Income taxes - current 1,484 3,101 Income taxes - deferred (257) (526) Total income taxes 1,226 2,575 Profit 2,477 5,686 Profit attributable to owners of parent 2,477 5,686
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7 Quarterly Consolidated Statements of Comprehensive Income for the Three Months Ended June 30, 2026 (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit 2,477 5,686 Other comprehensive income Valuation difference on available-for-sale securities 912 3,536 Foreign currency translation adjustment (98) 1,037 Remeasurements of defined benefit plans, net of tax (30) (52) Total other comprehensive income 783 4,521 Comprehensive income 3,260 10,207 Comprehensive income attributable to Comprehensive income attributable to owners of parent 3,260 10,207
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8 (3) Notes to the Consolidated Financial Statements Notes regarding assumptions as a going concern Not applicable Notes regarding any major change in the amount of consolidated shareholders’equity Not applicable Notes on Segment Information, etc. Ⅰ The 1st quarter of the consolidated fiscal year ended March 31, 2026 (April 1, 2025 to June 30, 2025) Information on reporting-segment-wise sales, profit (loss) (Millions of yen) Reporting segment Amount Adjusted (Note 1) Consolidated (Note 2)Automatic Machineries Components Total Net sales Sales to external customers 4,566 31,686 36,253 － 36,253 Intersegment sales or transfers － 14 14 (14) － Total 4,566 31,701 36,267 (14) 36,253 Segment profit 1,002 4,120 5,122 (1,350) 3,772 Notes: 1. The amount of adjustment for segment profit of ¥(1,350) million includes ¥8 million for elimination of transactions among segments and ¥(1,358) million as the total company expenses that are not allocated to each reporting segment. The total company expenses mainly refers to expenses related to administration and long-term R&D expenses of CKD and costs related to CKD GLOBAL SERVICE CORP. 2. Segment profit has already been adjusted with operating profit shown in the consolidated statement of income. Ⅱ The 1st quarter of the consolidated fiscal year ending March 31, 2027 (April 1, 2026 to June 30, 2026) Information on reporting-segment-wise sales, profit (loss) (Millions of yen) Reporting segment Amount Adjusted (Note 1) Consolidated (Note 2)Automatic Machineries Components Total Net sales Sales to external customers 3,036 46,072 49,108 － 49,108 Intersegment sales or transfers － 13 13 (13) － Total 3,036 46,086 49,122 (13) 49,108 Segment profit 738 8,751 9,489 (1,457) 8,032 Notes: 1. The amount of adjustment for segment profit of ¥(1,457) million includes ¥8 million for elimination of transactions among segments and ¥(1,466) million as the total company expenses that are not allocated to each reporting segment. The total company expenses mainly refers to expenses related to administration and long-term R&D expenses of CKD and costs related to CKD GLOBAL SERVICE CORP. 2. Segment profit has already been adjusted with operating profit shown in the consolidated statement of income.
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9 Notes on Cash Flow Statement The Company has not prepared a quarterly consolidated statement of cash flows for the 1st quarter of the consolidated fiscal year under review. Depreciation (including amortization relating to intangible fixed assets, excluding goodwill) and amortization of goodwill for the 1st quarter of the consolidated fiscal year under review are as follows. For the three months ended June 30, 2025 For the three months ended June 30, 2026 Depreciation 1,654 Millions of yen 1,691 Millions of yen Amortization of goodwill 3 " － 3. Others Production, orders and sales [1] Actual production Actual production by reporting segment in the 1st quarter of the consolidated fiscal year under review are as follows. Segment name Production output (Millions of yen) Change YoY(%) Automatic machineries 5,123 +17.5 Components 46,061 +42.7 Total 51,185 +39.7 Notes: 1. Intersegment transactions have been offset and eliminated. 2. Amounts are based on sales prices. [2] Actual orders Actual orders by reporting segment in the 1st quarter of the consolidated fiscal year under review are as follows. Segment name Orders (Millions of yen) Change YoY(%) Order backlog (Millions of yen) Change YoY(%) Automatic machineries 3,683 (20.3) 17,260 +2.0 Note: Production is carried out by expected demand, excluding the Automatic machineries segment. [3] Actual sales Actual sales by reporting segment in the 1st quarter of the consolidated fiscal year under review are as follows. Segment name Sales (Millions of yen) Change YoY(%) Automatic machineries 3,036 (33.5) Components 46,072 +45.4 Total 49,108 +35.5 Note: Intersegment transactions have been offset and eliminated.