Interim report
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THK The Mark of Linear Motion August 5 , 2026 Consolidated Financial Results for the Six Months Ended June 30 , 2026 under IFRS Company Name Head Office URL Stock exchange listing Code number Representative Contact Scheduled date of filing semi - annual securities report ( Japanese version only ) Scheduled starting date of dividend payment THK CO . , LTD . Tokyo , Japan ( Tel : + 81-3-5730-3911 ) https://www.thk.com/ Tokyo Stock Exchange Prime Market 6481 Takashi Teramachi , President and CEO Kenji Nakane , Director and CFO August 6 , 2026 September 11 , 2026 1. Consolidated operating results and financial position as of and for the six months ended June 30 , 2026 ( January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results Profit Attributable Six Months Ended June 30 2026 2025 Revenue ( Millions of Yen ) ¥ 151,067 32.4 % 114,137 Operating Income ( Millions of Yen ) ¥ 22,483 268.9 % 6,095 Profit Before Tax ( Millions of Yen ) ¥ 22,092 221.7 % 6,866 Profit ( Millions of Yen ) ¥ 33,837 751.3 % 3,974 ( 46.0 ) to Owners of the Parent ( Millions of Yen ) ¥ 33,744 805.3 % 3,727 ( 48.3 ) Total Comprehensive Income ( Loss ) ( Millions of Yen ) ¥ 30,358 - % ( 9,364 ) Six Months Ended June 30 Basic Earnings per Share ( Yen ) Diluted Earnings per Share ( Yen ) 2026 2025 ¥ 301.18 32.72 Note : Effective from the fourth quarter period of the previous fiscal year , the automotive & transportation business has been classified as a discontinued operation . Therefore , revenue , operating income , and profit before tax in the table above represent amounts from continuing operations and exclude amounts from the discontinued operation , whereas profit and profit attributable to owners of the parent is presented at the total amount of the continuing operations and discontinued operation . Since the comparative prior - year figures are presented in the same manner , the year - on- year percentage points of revenue , operating income , and profit before tax are not presented . ( 2 ) Consolidated Financial Position Total Assets ( Millions of Yen ) June 30 , 2026 December 31 , 2025 ¥ 480,597 472,992 Total Equity ( Millions of Yen ) ¥ 275,996 265,749 Equity Attributable to Owners of the Parent ( Millions of Yen ) ¥ 275,996 261,333 Ratio of Equity Attributable to Owners of the Parent 57.4 % 55.3
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2 2. Dividends Dividend Per Share (Yen) First Quarter end Second Quarter end Third Quarter end Year/Period end Total Year ended December 31, 202 5 (Actual) ¥－ ¥123.00 ¥－ ¥123.00 ¥246.00 Year ending December 31, 2026 (Actual) － 96.00 N/A N/A N/A Year ending December 31, 202 6 (Projected) N/A N/A － 99.00 195.00 (Note) Change in dividend projection: Yes THK’s dividend policy is to pay dividends based on a dividend on equity (DOE) ratio of 8%. Based on this policy, THK revised the dividend projection for the year ending December 31, 202 6. For details of the revision to the dividend projection, please refer to the “Notice Regarding Revision to Dividend Projection” announced today (August 5, 2026). 3. Forecasts for the year ending December 31, 2026 (January 1, 2026 to December 31, 2026) Revenue (Millions of Yen) Operating Income (Millions of Yen) Profit Before Tax (Millions of Yen) Profit Attributable to Owners of the Parent (Millions of Yen) Profit per Share (Yen) Year ending December 31, 2026 ¥310,000 28.9% ¥48,000 232.5% ¥47,100 199.1% ¥54,800 －% ¥488.97 (Note) Changes from forecasts most recently announced : Yes Effective from the fourth quarter period of the previous fiscal year, the automotive & transportation business has been classified as a discontinued operation. Therefore, revenue, operating income, and profit before tax in the table above represent amounts from continuing operations and exclude amounts from the discontinued operation, whereas profit attributable to owners of the parent is presented at the total amount of the continuing operations and discontinued operation. The year -on-year percentage points for the year ending December 31, 2026 are calculated based on the previous -year operating results after classification to the continuing operations. Other Financial Information (1) Significant change in scope of consolidation: 11 subsidiaries excluded from the scope of consolidation: THK RHYTHM AUTOMOTIVE CANADA LIMITED; THK RHYTHM AUTOMOTIVE MICHIGAN CORPORATION; THK RHYTHM MEXICANA, S.A. DE C.V.; and eight other subsidiaries (2) Changes in accounting policy and estimates, and restatement due to: (3) Number of shares (shares) a. Common stock issued, including treasury stock, as of: June 30, 2026 119,099,803 December 31, 2025 119,099,803 b. Treasury stock as of: June 30, 2026 7,027,254 December 31, 2025 7,080,022 c. Average number of common stock for the six months ended: June 30, 2026 112,041,588 June 30, 2025 113,923,163 a. Changes in accounting standards None b. Other changes None c. Changes in accounting estimates None
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3 Management’s Discussion and Analysis 1. Outline of operating results (1) Operating results (from January 1, 2026 to June 30, 2026) In this six months period, the outlook for the global economy remained uncertain amid concerns such as rising geopolitical risks including the situation in Ukraine and in the Middle East, continuing inflation, and the U.S. tariff policy. THK has established “Early Realization of ROE Over 10%” as its new management policy and announced its management indicator targets and measures to achieve them at the announcement of financial results in February 2025. In addition to the “structural reform” in the industrial machinery business and the “selection and concentration” in the automotive & transportation business, the new management policy places greater emphasis on controlling shareholders' equity, which is the denominator of ROE. In light of these circumstances, for the automotive & transportation business, THK conducted a thorough examination of the expected cost of capital and return on invested capital (ROIC) at present and in the future as well . As a result, THK has determined that transferring the automotive & transportation business is the most appropriate option. Consequently, on February 2, 2026, THK decided to transfer the automotive & transportation business to AP87 Co., Ltd., a special purpose company indirectly funded by investment funds serviced by Advantage Partners, Inc. and entered into a basic agreement concerning transfer of shares and assignment of receivables of subsidiaries engaging in the automotive & transportation business. Since the requirements of classification of assets as held for sale in accordance with IFRS 5, “Non-current Assets Held for Sale and Discontinued Operations” have been met, the automotive & transportation business has been classified as a discontinued operation since the fourth quarter period of the previous fiscal year, and the related consolidated financial statements and notes thereto for the corresponding period of the previous year have been reclassified to align with the current year presentation. Subsequently on June 1, 2026, THK completed the transfer of shares and assignment of receivables of subsidiaries engaging in the automotive & transportation business. In the industrial machinery business , the continuing operations of THK, orders remained strong mainly owing to the expansion of capital investments primarily in semiconductor-related products due to the increased demand for AI. As a result, along with the weaker yen as compared to that a year earlier, revenue amounted to ¥151,067 million, up ¥36,930 million, or 32.4%, compared to the figure a year earlier. Costs were impacted by expenses associated with structural reforms of the industrial machinery business under the new management policy and the effects of U.S. tariffs. However, the cost to revenue ratio decreased by 4.6% from a year earlier to 65.7%, due to the increased revenue, the effect of the structural reforms. Selling, general and administrative expenses amounted to ¥28,949 million, up ¥1,552 million, or 5.7%, compared to the figure a year earlier. However, the ratio to revenue was 19.2%, down 4.8% from a year earlier. In addition, the THK Group recorded ¥740 million of costs associated with implementing the Next Career Support Program announced on February 12, 2026. As a result, operating income amounted to ¥22,483 million, up ¥16,388 million, or 268.9%, compared to the figure a year earlier. Operating income margin rose by 9.6% from a year earlier to 14.9%. Finance income and finance costs were ¥1,208 million and ¥1,600 million, respectively. As a result, income before tax amounted to ¥22,092 million, up ¥15,225 million, or 221.7%, compared to the figure a year earlier.
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4 In addition, THK recorded a gain on transfer of business which is mainly attributable to a reclassification of the cumulative translation difference for foreign operations resulting from the transfer of the automotive & transportation business of ¥16,436 million. As a result, profit attributable to owners of the parent amounted to ¥33,744 million, up ¥30,017 million, or 805.3%, compared to the figure a year earlier. (2) Operating results by segment (Japan) In Japan, revenue amounted to ¥63,351 million, up ¥10,007 million, or 18.8%, compared to the figure a year earlier due mainly to the recovery of demand for electronics-related products and machine tools. Segment income (operating income) amounted to ¥27,163 million, up ¥25,013 million, compared to the figure a year earlier (¥2,150 million), due mainly to the increased revenue and a gain on transfer of business which is mainly attributable to a reclassification of the cumulative translation difference for foreign operations resulting from the transfer of the automotive & transportation business of ¥16,436 million. (The Americas) In the Americas, revenue amounted to ¥44,922 million, up ¥1,073 million, or 2.4%, compared to the figure a year earlier due mainly to the recovery of demand for electronics-related products and the weaker yen as compared to that a year earlier. Segment income (operating income) amounted to ¥534 million, down ¥93 million, or 14.8%, compared to the figure a year earlier. (Europe) In Europe, revenue amounted to ¥34,679 million, up ¥802 million, or 2.4%, compared to the figure a year earlier due mainly to the overall recovery of demand and the weaker yen as compared to the period a year earlier. Segment loss (operating loss) decreased by ¥466 million from the figure a year earlier to ¥294 million (a loss of ¥760 million a year earlier). (China) In China, while demand was strong overall, revenue amounted to ¥49,922 million, up ¥14,479 million, or 40.9%, compared to the figure a year earlier. Segment income (operating income) amounted to ¥8,318 million, up ¥3,985 million, or 92.0%, compared to the figure a year earlier due to the increased revenue. (Other) In other countries and regions, the THK Group expanded its sales channels and implemented aggressive sales activities to cultivate new customers while demand for THK Group’s products was widely expanded in India and the ASEAN countries. In such a situation, revenue amounted to ¥13,577 million, up ¥3,844 million, or 39.5%, compared to the figure a year earlier. Segment income (operating income) amounted to ¥1,806 million, up ¥1,582 million or 707.3%, compared to the figure a year earlier.
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5 2. Financial position (as of June 30, 2026) Total assets stood at ¥480,597 million, ¥7,605 million up from the previous fiscal year-end, due mainly to a combined effect of decrease in assets held for sale by ¥36,126 million resulting from the completion of the transfer of the automotive & transportation business, and increase in (1) cash and cash equivalents by ¥6,916 million, (2) trade and other receivables by ¥10,707 million, (3) inventories by ¥5,275 million, (4) property plant and equipment by ¥1,193 million, and (5) other financial assets by ¥13,633 million. Total liabilities stood at ¥204,600 million, ¥2,641 million down from the previous fiscal year-end, due mainly to a combined effect of increase in (1) bonds and borrowings by ¥16,607 million and (2) trade and other payables by ¥ 3,824 million and decrease in liabilities directly associated with assets held for sale by ¥ 28,377 million resulting from the completion of the transfer of the automotive & transportation business. Total equity stood at ¥275,996 million, ¥10,247 million up from the previous fiscal year-end, due mainly to a combined effect of decrease in (1) capital surplus by ¥1,015 million, and (2) n on-controlling interests by ¥4,416 million, and (3) other components of equity associated with a disposal group held for sale by ¥14,142 million resulting from the completion of the transfer of the automotive & transportation business, and increase in (1) retained earnings by ¥19,765 million and (2) other components of equity by ¥9,886 million. 3. Forecast for the fiscal year ending December 31, 2026 For details of the financial forecasts for the year ending December 31, 2026, please refer to “Notice Regarding the Revision of Financial Forecasts” announced today, August 5, 2026.
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6 Consolidated Financial Statements Consolidated Statements of Financial Position (Millions of Yen) As of December 31, 2025 As of June 30, 2026 Assets: Current assets: Cash and cash equivalents ¥110,008 ¥116,924 Trade and other receivables 63,528 74,236 Inventories 65,177 70,452 Other financial assets 2,001 2,515 Other current assets 7,526 13,544 Subtotal 248,241 277,673 Assets held for sale 36,126 － Total current assets 284,367 277,673 Non-current assets: Property, plant and equipment 162,901 164,095 Goodwill and intangible assets 3,197 4,037 Investments accounted for using the equity method 5,347 4,930 Other financial assets 10,880 23,999 Deferred tax assets 6,005 5,549 Retirement benefit asset 129 157 Other non-current assets 162 155 Total non-current assets 188,624 202,923 Total assets 472,992 480,597
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7 (Millions of Yen) As of December 31, 2025 As of June 30, 2026 Liabilities and equity: Liabilities: Current liabilities: Trade and other payables ¥18,585 ¥22,410 Bonds and borrowings 33,205 60,006 Other financial liabilities 2,884 3,047 Provisions 99 2,172 Income taxes payable 3,057 2,809 Other current liabilities 14,157 16,022 Subtotal 71,990 106,468 Liabilities directly associated with assets held for sale 28,377 － Total current liabilities 100,368 106,468 Non-current liabilities: Bonds and borrowings 90,000 79,807 Other financial liabilities 6,621 7,715 Retirement benefit liabilities 1,408 1,438 Provisions 65 65 Deferred tax liabilities 6,174 6,513 Other non-current liabilities 2,605 2,593 Total non-current liabilities 106,874 98,132 Total Liabilities 207,242 204,600 Equity Common stock 34,606 34,606 Capital surplus 39,580 38,564 Retained earnings 128,734 148,500 Treasury stock (22,445) (22,276) Other components of equity 66,715 76,601 Other components of equity associated with a disposal group held for sale 14,142 － Total equity attributable to owners of the parent 261,333 275,996 Non-controlling interests 4,416 － Total Equity 265,749 275,996 Total liabilities and equity 472,992 480,597
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8 Consolidated Statements of Profit or Loss (Millions of Yen) Six months Ended June 30, 2025 Six months Ended June 30, 2026 Continuing operations Revenue ¥114,137 ¥151,067 Cost of sales 80,199 99,184 Gross profit 33,938 51,883 Selling, general and administrative expenses 27,396 28,949 Other income 746 953 Other expenses 713 1,237 Share of loss in investments accounted for using the equity method (479) (166) Operating income 6,095 22,483 Finance income 2,354 1,208 Finance costs 1,582 1,600 Profit before tax 6,866 22,092 Income tax expense 2,651 3,751 Profit from continuing operations 4,215 18,341 Discontinued operation Profit (loss) from discontinued operation (240) 15,496 Profit 3,974 33,837 Profit attributable to: Owners of the parent 3,727 33,744 Non-controlling interests 247 92 Profit 3,974 33,837 Earnings (loss) per share: Basic earnings (loss) per share (yen): Continuing operations 34.79 162.87 Discontinued operation (2.07) 138.31 Basic earnings per share 32.72 301.18 Diluted earnings per share (yen): Continuing operations － － Discontinued operation － － Diluted earnings per share － －
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9 Consolidated Statements of Comprehensive Income (Millions of Yen) Six months Ended June 30, 2025 Six months Ended June 30, 2026 Profit ¥3,974 ¥33,837 Other comprehensive income Items that will not be reclassified to profit or loss: Financial assets measured at fair value through other comprehensive income 124 1,939 Remeasurements of defined benefit plans (328) (305) Share of other comprehensive income of associates accounted for using the equity method 4 17 Total of items that will not be reclassified to profit or loss (199) 1,651 Items that may be reclassified to profit or loss: Exchange differences on translation of foreign operations (13,141) (4,927) Share of other comprehensive income (loss) of associates accounted for using the equity method 2 (203) Total of items that may be reclassified to profit or loss (13,139) (5,130) Other comprehensive income (loss), net of tax (13,338) (3,479) Comprehensive income (loss) (9,364) 30,358 Comprehensive income (loss) attributable to: Owners of the parent (9,228) 30,148 Non-controlling interests (135) 210 Comprehensive income (9,364) 30,358
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10 Consolidated Statements of Changes in Equity (Millions of Yen) Equity attributable to owners of the parent Common stock Capital surplus Retained earnings Treasury stock Other components of equity Six Months Ended June 30, 2025 Exchange differences on translating foreign operations Beginning balance ¥34,606 ¥40,120 ¥260,638 ¥(21,104) ¥67,919 Profit － － 3,727 － － Other comprehensive income (loss) － － － － (12,756) Total comprehensive income － － 3,727 － (12,756) Purchase of treasury stock － (369) － (35,984) － Disposal of treasury stock － 87 － 527 － Dividends － － (15,614) － － Transfer from other components of equity to retained earnings － － (332) － － Other － － － － － Total transactions with owners － (281) (15,947) (35,456) － Ending balance 34,606 39,838 248,419 (56,560) 55,163 Equity attributable to owners of the parent Non-controlling interests Total equity Other components of equity Total Financial assets measured at fair value through other comprehensive income Remeasurements of defined benefit plans Subtotal Beginning balance ¥1,464 ¥－ ¥69,384 ¥383,645 ¥6,149 ¥389,795 Profit － － － 3,727 247 3,974 Other comprehensive income (loss) 133 (332) (12,955) (12,955) (383) (13,338) Total comprehensive income 133 (332) (12,955) (9,228) (135) (9,364) Purchase of treasury stock － － － (36,353) － (36,353) Disposal of treasury stock － － － 615 － 615 Dividends － － － (15,614) － (15,614) Transfer from other components of equity to retained earnings － 332 332 － － － Other － － － － (2,171) (2,171) Total transactions with owners － － 332 332 (51,352) (2,171) (53,524) Ending balance 1,597 － 56,760 323,064 3,841 326,906
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11 (Millions of Yen) Equity attributable to owners of the parent Common stock Capital surplus Retained earnings Treasury stock Other components of equity Six Months Ended June 30, 2026 Exchange differences on translation of foreign operations Beginning balance ¥34,606 ¥39,580 ¥128,734 ¥(22,445) ¥64,449 Profit － － 33,744 － － Other comprehensive income － － － － 8,894 Total comprehensive income － － 33,744 － 8,894 Purchase of treasury stock － － － (2) － Disposal of treasury stock － 87 － 171 － Dividends － － (13,778) － － Changes in ownership interests in subsidiaries without losing control － (1,103) － － (858) Transfer from other components of equity to retained earnings － － (200) － － Other － (0) (0) － － Total transactions with owners － (1,015) (13,978) 169 (858) Ending balance 34,606 38,564 148,500 (22,276) 72,485 Equity attributable to owners of the parent Non- controlling interests Total equity Other components of equity Other components of equity associated with a disposal group held for sale Total Financial assets measured at fair value through other comprehensive income Remeasure- ments of defined benefit plans Subtotal Beginning balance ¥2,265 ¥－ ¥66,715 ¥14,142 ¥261,333 ¥4,416 ¥265,749 Profit － － － － 33,744 92 33,837 Other comprehensive income 1,937 (286) 10,545 (14,142) (3,596) 117 (3,479) Total comprehensive income 1,937 (286) 10,545 (14,142) 30,148 210 30,358 Purchase of treasury stock － － － － (2) － (2) Disposal of treasury stock － － － － 259 － 259 Dividends － － － － (13,778) － (13,778) Changes in ownership interests in subsidiaries without losing control － － (858) － (1,962) (4,625) (6,587) Transfer from other components of equity to retained earnings (86) 286 200 － － － － Other － － － － (0) (1) (1) Total transactions with owners (86) 286 (658) － (15,484) (4,626) (20,110) Ending balance 4,116 － 76,601 － 275,996 － 275,996
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12 Consolidated Statements of Cash Flows (Millions of Yen) Six months Ended June 30, 2025 Six months Ended June 30, 2026 Cash flows from operating activities： Profit before tax ¥6,866 ¥22,092 Profit (loss) from discontinued operation (223) 15,582 Depreciation and amortization 12,086 11,713 Gain on transfer of business － (16,436) Change in retirement benefit assets or liabilities (457) (532) Finance income (1,082) (1,984) Finance costs 1,524 1,600 Share of loss of investments accounted for using the equity method 479 166 (Increase) decrease in trade and other receivables (219) (13,899) (Increase) decrease in inventories 2,465 (3,356) Increase (decrease) in trade and other payables 598 4,515 Other 871 3,644 Subtotal 22,909 23,105 Interests and dividends received 945 520 Interests paid (251) (563) Income taxes paid (3,299) (4,193) Net cash provided by (used in) operating activities 20,302 18,868 Cash flows from investing activities: Purchase of property, plant and equipment (8,610) (8,681) Proceeds from sales of property, plant and equipment 80 154 Purchase of other financial assets (164) (70) Proceeds from sales of other financial assets － 126 Payments for transfer of the automotive & transportation business － (13,898) Other (271) (1,290) Net cash provided by (used in) investing activities (8,967) (23,660) Cash flows from financing activities: Repayments of long-term borrowings (2,185) (2,185) Proceeds from short-term borrowings 15,000 30,000 Proceeds from issuance of bonds 10,000 － Payments for redemption of bonds (10,000) (10,000) Purchase of treasury stock (36,516) (2) Dividends paid (15,595) (13,759) Dividends paid to non-controlling interests (2,192) (1) Payments for a capital reduction to non-controlling interests － (6,563) Repayments of lease liabilities (1,020) (950) Other 340 － Net cash provided by (used in) financing activities (42,169) (3,461) Effects of exchange rate changes on cash and cash equivalents (5,932) 4,644 Net increase (decrease) in cash and cash equivalents (36,766) (3,609) Cash and cash equivalents at the beginning of the period 138,293 120,534 Cash and cash equivalents at the end of the period 101,527 116,924
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13 Changes in Presentation On February 2, 2026, THK entered into a basic agreement concerning a business transfer of THK’s automotive & transportation business with AP87 Co., Ltd., a special purpose company indirectly funded by investment funds serviced by Advantage Partners, Inc. Since the requirements of classification of assets as held for sale in accordance with IFRS 5, “Non-current Assets Held for Sale and Discontinued Operations” have been met, the automotive & transportation business has been classified as a discontinued operation since the fourth quarter period of the previous fiscal year. Consequently, the consolidated statement of profit or loss, the consolidated statement of cash flows, and the related notes to the consolidated financial statements for the six months period ended June 30, 2025 have been reclassified to align with the presentation of the six months period ended June 30, 2026. Segment Information 1. Outline of reportable segments THK’s reportable segments are components of THK Group for which respective financial information is separately available. Operating results of each segment are reviewed periodically by the Board of Directors to determine allocation of operating resources and evaluate its performance. THK Group’s main products are machinery parts such as LM (linear motion) guides and ball screws. In each country, local subsidiaries establish their comprehensive business strategies and conduct their business activities in a similar way that THK and domestic subsidiaries do in Japan. Therefore, the reportable segments consist of the five geographical segments, namely; (1) Japan, (2) The Americas (the United States and others), (3) Europe (Germany, France and others), (4) China, and (5) Other (Taiwan, Singapore and others) based on the THK Group’s production/sales structure. On February 2, 2026, THK entered into a basic agreement concerning a business transfer of THK’s automotive & transportation business with AP87 Co., Ltd., a special purpose company indirectly funded by investment funds serviced by Advantage Partners, Inc. Since the requirements of classification of assets as held for sale in accordance with IFRS 5, “Non-current Assets Held for Sale and Discontinued Operations” have been met effective from the fourth quarter period of the previous fiscal year, the amounts of each reportable segment in the following tables are stated at the total amount of the industry machinery business and the automotive & transportation business, with reconciliation of the automotive & transportation business as a discontinued operation. The segment information for the six months period ended June 30, 2025 have been reclassified to align with the presentation of the six months period ended June 30, 2026. This business transfer was completed on June 1, 2026. Segment income is computed based on operating income. The reportable segment information is prepared under the same accounting policies as those used in consolidation. Inter-segment sales and transfer are stated at amounts based on their fair market values. All adjustments in the following tables are intersegment elimination on consolidation.
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14 2. Reportable segments For the six months ended June 30, 2025 (January 1, 2025 to June 30, 2025) (Millions of Yen) Reportable Segments Japan The Americas Europe China Other Total Adjustments Consolidated (Before Reclassification to Discontinued Operation) Reclassification to Discontinued Operation Consolidated (After Reclassification to Discontinued Operation) Revenue: Revenue from external customers ¥53,343 ¥43,849 ¥33,877 ¥35,443 ¥9,732 ¥176,246 ¥－ ¥176,246 ¥(62,108) ¥114,137 Inter-segment revenue 30,051 69 469 1,121 2,716 34,427 (34,427) － － － Total 83,395 43,918 34,346 36,565 12,448 210,674 (34,427) 176,246 (62,108) 114,137 Segment income (loss) 2,150 628 (760) 4,332 223 6,574 (393) 6,181 (85) 6,095 Finance income 32,537 163 1,238 170 64 34,174 (32,128) 2,046 307 2,354 Finance costs 1,617 350 138 28 31 2,167 (583) 1,583 (1) 1,582 Profit before tax 33,070 441 339 4,474 256 38,582 (31,939) 6,643 223 6,866 (Note) All adjustments are intercompany elimination. For the six months ended June 30, 2026 (January 1, 2026 to June 30, 2026) (Millions of Yen) Reportable Segments Japan The Americas Europe China Other Total Adjustments Consolidated (Before Reclassification to Discontinued Operation) Reclassification to Discontinued Operation Consolidated (After Reclassification to Discontinued Operation) Revenue: Revenue from external customers ¥63,351 ¥44,922 ¥34,679 ¥49,922 ¥13,577 ¥206,453 ¥－ ¥206,453 ¥(55,385) ¥151,067 Inter-segment revenue 40,265 32 335 950 3,289 44,873 (44,873) － － － Total 103,617 44,955 35,015 50,873 16,866 251,327 (44,873) 206,453 (55,385) 151,067 Segment income (loss) 27,163 534 (294) 8,318 1,806 37,529 501 38,030 (15,546) 22,483 Finance income 10,376 241 575 120 58 11,372 (10,126) 1,245 (36) 1,208 Finance costs 1,847 227 352 37 150 2,614 (1,014) 1,600 (0) 1,600 Profit (loss) before tax 35,692 547 (70) 8,401 1,714 46,286 (8,611) 37,675 (15,582) 22,092 (Note) All adjustments are intercompany elimination.
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15 Assets Held for Sale and Liabilities Directly Associated with Them Assets classified as assets held for sale and liabilities directly associated with them are as follows: (Millions of Yen) As of December 31, 2025 As of June 30, 2026 Assets held for sale: Current assets: Cash and cash equivalents ¥10,526 ¥－ Trade and other receivables 21,842 － Inventories 3,757 － Total 36,126 － Liabilities directly associated with assets held for sale: Trade and other payables 15,501 － Other financial liabilities 2,299 － Provisions 31 － Income taxes payable 120 － Retirement benefit liabilities 3,785 － Deferred tax liabilities 2,181 － Other current liabilities 3,875 － Other non-current liabilities 580 － Total 28,377 － At the Board of Directors meeting held on February 2, 2026, THK decided to conduct a business transfer of its automotive & transportation business to AP87 Co., Ltd. (the “Transferee”), a special purpose company indirectly funded by investment funds serviced by Advantage Partners, Inc. On the same date, THK entered into a basic agreement concerning the business transfer. Since the requirements of classification of assets as held for sale in accordance with IFRS 5, “Non- current Assets Held for Sale and Discontinued Operations” have been met, THK Group’s assets and liabilities related to the automotive & transportation business have been classified as a disposal group held for sale in the fourth quarter period of the previous fiscal year. The business transfer was executed by transferring all of THK’s holding shares of TRA Holdings, CO., LTD., a subsidiary of THK which has THK RHYTHM CO., LTD. and five other companies as group companies, THK RHYTHM AUTOMOTIVE CANADA LIMITED, THK RHYTHM AUTOMOTIVE CZECH a.s., THK RHYTHM AUTOMOTIVE GmbH, and THK RHYTHM AUTOMOTIVE MICHIGAN CORPORATION (collectively, the “Target Subsidiaries”) and all the loans receivable from the Target Subsidiaries to the Transferee. This business transfer was completed on June 1, 2026.
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16 Cash Flow Information For the six months ended June 30, 2025 (January 1, 2025 to June 30, 2025) No items to report. For the six months ended June 30, 2026 (January 1, 2026 to June 30, 2026) (Business transfer of the automotive & transportation business) (1) Outline of the transaction At the Board of Directors meeting held on February 2, 2026, THK decided to conduct a business transfer of its automotive & transportation business to AP87 Co., Ltd. (the “Transferee”), a special purpose company indirectly funded by investment funds serviced by Advantage Partners, Inc. On the same date, THK entered into a basic agreement concerning the business transfer. Since the requirements of classification of assets as held for sale in accordance with IFRS 5, “Non-current Assets Held for Sale and Discontinued Operations” have been met, THK Group’s assets and liabilities related to the automotive & transportation business have been classified as a disposal group held for sale in the fourth quarter period of the previous fiscal year. The business transfer was executed by transferring all of THK’s holding shares of TRA Holdings, CO., LTD., a subsidiary of THK which has THK RHYTHM CO., LTD. and five other companies as group companies, THK RHYTHM AUTOMOTIVE CANADA LIMITED, THK RHYTHM AUTOMOTIVE CZECH a.s., THK RHYTHM AUTOMOTIVE GmbH, and THK RHYTHM AUTOMOTIVE MICHIGAN CORPORATION (collectively, the “Target Subsidiaries”) and all the loans receivable from the Target Subsidiaries to the Transferee. This business transfer was completed on June 1, 2026. As a result, THK lost control of the Target Subsidiaries on the same date. (2) Assets and liabilities associated with loss of control (Millions of Yen) Current assets ¥41,499 Non-current assets － Total assets 41,499 Current liabilities 20,890 Non-current liabilities 7,487 Total liabilities 28,377 (3) Cash flows associated with loss of control (Millions of Yen) Cash and cash equivalents received as a consideration of loss of control ¥2,000 Cash and cash equivalents held by the subsidiaries for which control was lost (15,898) Payment for transfer of the Target Subsidiaries (Note) (13,898) Note: Payment for transfer of the Target Subsidiaries is included in cash flows from investing activities in the consolidated statement of cash flows. (4) Profit and loss associated with loss of control The gain on transfer of business was ¥16,436 million and included in profit (loss) from discontinued operation in the consolidated statement of profit or loss.
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17 Discontinued Operation (1) Outline of discontinued operation At the Board of Directors meeting held on February 2, 2026, THK decided to conduct a business transfer of its automotive & transportation business to AP87 Co., Ltd. (the “Transferee”), a special purpose company indirectly funded by investment funds serviced by Advantage Partners, Inc. On the same date, THK entered into a basic agreement concerning the business transfer. Since the requirements of classification of assets as held for sale in accordance with IFRS 5, “Non-current Assets Held for Sale and Discontinued Operations” have been met, THK Group’s assets and liabilities related to the automotive & transportation business have been classified as a disposal group held for sale in the fourth quarter period of the previous fiscal year. The business transfer was executed by transferring all of THK’s holding shares of TRA Holdings, CO., LTD., a subsidiary of THK which has THK RHYTHM CO., LTD. and five other companies as group companies, THK RHYTHM AUTOMOTIVE CANADA LIMITED, THK RHYTHM AUTOMOTIVE CZECH a.s., THK RHYTHM AUTOMOTIVE GmbH, and THK RHYTHM AUTOMOTIVE MICHIGAN CORPORATION (collectively, the “Target Subsidiaries”) and all the loans receivable from the Target Subsidiaries to the Transferee. This business transfer was completed on June 1, 2026. (2) Profit and loss from the discontinued operation (Millions of Yen) Six months Ended June 30, 2025 Six months Ended June 30, 2026 Revenue ¥62,108 ¥55,385 Cost of sales 56,618 50,628 Gross profit 5,490 4,757 Selling, general and administrative expenses 5,436 4,737 Other income 269 16,621 Other expenses 238 1,094 Operating income 85 15,546 Finance income 37 36 Finance costs 346 0 Profit (loss) before tax (223) 15,582 Income tax expense 17 86 Profit (loss) from discontinued operation (240) 15,496 (3) Cash flows from discontinued operation Cash flows from discontinued operation are as follows: (Millions of Yen) Six months Ended June 30, 2025 Six months Ended June 30, 2026 Cash flows from operating activities ¥3,370 ¥(878) Cash flows from investing activities (1,513) (13,898) Cash flows from financing activities (1,733) 6,251 Note: Cash flows from investing activities include payments for transfer of the automotive & transportation business of ¥13,898 million.
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18 Comprehensive income Exchange differences on translation of foreign operations of ¥(4,927) million (loss) for the six months ended June 30, 2026, include a reclassification adjustment to profit or loss of ¥14,811 million (profit) resulting from the completion of the transfer of the automotive & transportation business. This reclassification adjustment has been included in profit (loss) from discontinued operation in the consolidated statements of profit or loss. The amount of exchange differences on translation of foreign operations other than this reclassification adjustment for the six months ended June 30, 2026, amounted to ¥9,884 million (profit). Subsequent event No items to report. Additional notes: All the figures in this report except per share information are rounded down to the nearest million. This information is summarized and translated from the original Japanese version submitted to the Tokyo Stock Exchange in accordance with its disclosure rules and presentation manners, which are different from those applied in the annual reports of THK due to reclassification and rearrangement made therein. This English translation is intended solely for the convenience of readers, and not intended in any way to substitute or replace the original Japanese version. If there is any discrepancy between the original Japanese version and this translation, the original Japanese version shall supersede all information in this translation. All the figures in this report are unaudited.