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Financial Results for the Six Months Ended September 30, 2025 November 20, 2025 TPR Co., Ltd. April 1, 2025 - September 30, 2025 Tokyo Stock Exchange Prime Market (Securities Code: 6463) 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.
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Highlights of Financial Results for the Six Months Ended September 30, 2025 2 First Half Results Earnings Forecasts for the Fiscal Year Ending March 31, 2026 Shareholder returns ◼ Net sales decreased due to customer-side impact at Faltec. Operating profit declined due to changes in the product mix. ◼ Strong performance in the Chinese market, especially among Chinese domestic manufacturers, supported earnings. ◼ Initial forecasts remain unchanged as first half results were largely in line with the plan. ◼ Tariff impact is in line with initial forecasts. ◼ Currently acquiring treasury shares using proceeds from the sale of assets held by the Company (2.5 billion yen). ◼ Paid an interim dividend of 50 yen per share, as forecast at the beginning of the fiscal year.* *Pre-stock split conversion; as of September 30, 2025
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3 02 Earnings Forecasts for the Fiscal Year Ending March 31, 2026 03 Table of Contents 01 Financial Results for the Six Months Ended September 30, 2025 Shareholder Returns 04 Topics
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Financial Results for the Six Months Ended September 30, 2025 4 FY2024 interim results FY2025 interim results YoY Amount change Percent change Net sales 94.9 90.3 (4.5) (4.8)% Operating profit 4.8 4.3 (0.4) (9.2)% [profit ratio] (5.1) (4.8) Ordinary profit 6.9 6.7 (0.1) (2.8)% [profit ratio] (7.3) (7.5) Profit (*) 3.3 4.9 1.6 48.0% [profit ratio] (3.5) (5.5) Exchange rate USD/JPY 152.33 149.00 3.33 (Yen appreciation) CNY/JPY 21.07 20.54 0.53 (Yen appreciation) Dividend (Yen) 50 50 0 （Unchanged） *Profit attributable to owners of parent Unit: Billion yen ◼ Net sales decreased mainly due to customer-side impact at Faltec. ◼ Operating profit was down due to change in product mix in the Japan segment. ◼ Profit increased year on year due to a gain on the sale of company-owned assets.
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Financial Results for the Six Months Ended September 30, 2025: Quarterly Comparison 5 *Profit attributable to owners of parent FY2025 1Q vs. 2Q interim results Cumulative total 1Q 2Q Amount change Percent change Net sales 90.3 43.8 46.4 2.6 6.0% Operating profit 4.3 1.5 2.8 1.2 84.1% [profit ratio] (4.8) (3.5) (6.1) Ordinary profit 6.7 2.4 4.2 1.8 72.9% [profit ratio] (7.5) (5.7) (9.2) Profit (*) 4.9 1.4 3.5 2.0 141.0% [profit ratio] (5.5) (3.3) (7.5) ◼ 2Q exceeded 1Q, with profitability improving steadily. ◼ Mainly driven by China, supported by cost-reduction and rationalization efforts. Unit: Billion yen
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Financial Results for the Six Months Ended September 30, 2025: Segment Comparison Faltec GroupTPR Group (excluding Faltec Group) Japan Asia North America Other 23.9 24.0 24/9 25/9 Up 0.1 billion yen (Billion yen) 22.3 23.0 24/9 25/9 8.3 7.9 24/9 25/9 1.4 1.3 24/9 25/9 38.7 33.9 24/9 25/9 Up 0.7 billion yen Down 0.4 billion yen Down 0.1 billion yen Down 4.8 billion yen 0.3 (0) 24/9 25/9 (Billion yen) 3.8 4.0 24/9 25/9 0 (0.1) 24/9 25/9 0.1 0.1 24/9 25/9 0.4 0.1 24/9 25/9 Down 0.3 billion yen Up 0.2 billion yen Down 0.1 billion yen Unchanged Down 0.3 billion yen Net salesOperating profit 6
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▲ 2 7 ▲ 4 3 ▲ 2 ▲ 2 ▲ 2 6769 Financial Results for the Six Months Ended September 30, 2025: Factors for Change in Ordinary Profit FY Mar 2026 2Q FY Mar 2025 2Q Cost reduction, rationalization, etc. Unit: Billion yen Faltec Group profit/loss 7 Wage hike impact Labor cost recovery Ordinary profit: (0.2 billion yen) ◼ Price-cutting pressure continued in the China business, but was offset by cost-reduction and rationalization efforts. ◼ R&D expenses increased due to active investment in the frontier business. ◼ U.S. tariffs had only minor impact on first half results. Price reduction by customers R&D expenses Product mix, operational level, other 6.9 (0.2) 0.7 (0.4) 0.3 (0.2) (0.2) (0.2) 6.7
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8 02 Earnings Forecasts for the Fiscal Year Ending March 31, 2026 03 Table of Contents 01 Financial Results for the Six Months Ended September 30, 2025 Shareholder Returns 04 Topics
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Earnings Forecasts for the Fiscal Year Ending March 31, 2026 9 FY March 2026 first half results FY March 2026 initial forecast (announced on May 15) Progress against full- year forecast Net sales 90.3 183.4 49.3% Operating profit 4.3 9.4 46.5% [profit ratio] (4.8) (5.1) Ordinary profit 6.7 12.9 52.5% [profit ratio] (7.5) (7.0) Profit (*) 4.9 7.3 67.9% [profit ratio] (5.5) (4.0) *Profit attributable to owners of parent Unit: Billion yen ◼ First-half results were broadly in line with the plan, with only a slight shortfall. ◼ Full-year forecasts remain unchanged from the initial outlook.
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10 02 Earnings Forecasts for the Fiscal Year Ending March 31, 2026 03 Table of Contents 01 Financial Results for the Six Months Ended September 30, 2025 Shareholder Returns 04 Topics
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11 ◼ Repurchase of treasury shares up to ¥2.5 billion is underway. ◼ An interim dividend of ¥50 per share was paid as initially forecast. ⚫Share buyback • Implemented for the purpose of shareholder returns -Up to 2.5 billion yen -Period: July 1, 2025 – February 27, 2026 • Funds are sourced from proceeds from the sale of real estate and other assets. ⚫Dividends • An interim dividend of ¥50 per share was paid as initially forecast. • Annual dividends will be paid in line with the dividend policy (target payout ratio: 40% or higher). 10.5 14.5 15 15 25 2511.5 14.5 14 20 25 25 22 29 29 35 50 50 21/3 22/3 23/3 24/3 25/3 26/3(予想) Change in dividend per share (Unit: Yen) 中間配当 期末配当 Payout ratio Over 40% Stable and Continuous Dividend *Dividend amount prior to FY March 2026 also takes into account the stock split. 17 10 15 25 20年度 22年度 24年度 25年度 （予定） Share buyback Unit: Billion yen FY2020 FY2022 FY2024 FY2025 (plan) 1.7 1.0 1.5 2.5 （Pre-split conversion：50） Shareholder Returns 26/3 (forecast) Interim dividend Year-end dividend
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12 02 Earnings Forecasts for the Fiscal Year Ending March 31, 2026 03 Table of Contents 01 Financial Results for the Six Months Ended September 30, 2025 Shareholder Returns 04 Topics
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Topics 13 Global production strategy Powertrain India and Brazil: Invest in growth markets where engines remain India base China base Indonesia base North America base Brazil base Europe base *The number of vehicles is prepared by the Company based on data from JETRO and other sources. South Korea base Vietnam base ⚫ Aggressive capital investment in line with increased production and local procurement by major customers - India ① Increase production capacity by installing a new high-efficiency line (¥2 billion investment) ② Consider the establishment of a new plant - Brazil ① Expand processing lines to increase production capacity ② Expand the plant in anticipation of further demand in the future Automobile production in India (forecast)
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Topics 14 Production rationalization through overseas deployment of high-efficiency lines Powertrain Japan Indonesia China Aim Target (up to FY2026) Large-lot production line: Pursuit of productivity through the use of dedicated production lines Area reduction/labor savings → 25% increase in productivity Small-lot production line: Strengthening ability to respond to high-mix low-volume production Improved setup → 30% increase in productivity Target (up to FY2029) → 50% increase in productivity Aim Steel ring production line: Replacement of old equipment → Labor savings through more efficient production Target (up to FY2029) → 50% increase in productivity Aim Steel ring production line: Replacement of old equipment → More efficient production and area integration Overseas deployment
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R&D-based startups, etc. Topics 15 ⚫ Selected by the Tokyo Metropolitan Government as one of the five companies participating in the 2025 Tokyo Cross Lab*, a project to promote open innovation by leveraging the assets held by large companies, etc. *Project that supports the creation of new businesses through co-creation by opening up research and development facilities and equipment owned by large and medium-sized companies to startups and SMEs ⚫ The Company offers its Frontier Innovation Center (FIC) in Harumi, Chuo-ku, Tokyo, as a R&D center. Frontier Co-creation with startups Tokyo Metropolitan Government Administrative office (contracted) Support Rental of facilities Consideration of collaboration Frontier Innovation Center Selected for the Tokyo Metropolitan Government's "Tokyo Cross Lab" Open Innovation Project
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Topics 16 Responding to the progress of EVs Frontier Expansion of aluminum business to meet growing demand for lighter weight Company to be invested Aisin Anqing Automotive Parts Co. Ltd. Chinese- Affiliated customers Japanese- affiliated customers ・Capital relationship after equity interest acquisition ・Business development Company to be invested Aisin Anqing Automotive Parts Co. Ltd. Business description: Manufacture of aluminum die-cast parts *Detailed investment ratios are: AISIN CORPORATION: 34.81%, Anqing TP Powder Metallurgy Co., Ltd.: 50%, Anhui ARN Group Co., Ltd.: 15.19% Notice Regarding Acquisition of Equity Interest in Aisin Anqing Automotive Parts Co. Ltd. by the Company’s Consolidated Subsidiary (timely disclosure on September 30, 2025) ⚫ Plans to acquire 50% equity interest in Chinese aluminum die-casting company to expand aluminum business ⚫ Going forward, the Company will leverage its customer network in the Chinese market to create synergies in its sales network. AISIN CORPORATION 35% 15%50% TPR's Chinese partner ARN Anhui ARN Group Co., Ltd. TPR's Chinese subsidiary Anqing TP Powder Metallurgy Co., Ltd.
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17 FrontierPowertrain ⚫ Piston rings, cylinder liners, sintered products ⚫ Engine cut model ⚫ Cross reality -XR technology- ⚫ Digital content APP services ⚫ Products for alternative energy vehicles (EVs, PHEVs, etc.) ⚫ Thermal conductive clay ⚫ Rubber products for automotive and industrial applications ⚫ Decorative, metallic paint, 3D illumination Topics Powertrain Frontier Exhibited at Japan Mobility Show 2025 TPR exhibition booth
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Integrated Report 2025 Published 18 We have published the Integrated Report 2025 to help investors and all other stakeholders understand our various initiatives. https://www.tpr.co.jp/tp_e/ir/annual/
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19 [Disclaimer] The forward-looking statements contained in this document are based on the Company's judgment in accordance with the information currently available to it. Accordingly, please be aware that actual results may differ significantly from forecasts due to various risks, uncertainties and other factors.