Interim report
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Translation Notice: This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document the latter shall prevail. Summary of Consolidated Financial Results for the Six Months Ended September 30, 2026 (Based on Japanese GAAP) October 23, 2026 Company name: KOA Corporation Stock exchange listing: Tokyo, Nagoya Stock code: 6999 URL https://www.koaglobal.com Representative: Representative Director, President and CEO Kosei Mukaiyama Inquiries: General Manager of Management Strategy Center Yohei Yamamoto Phone +81-265-70-7171 Scheduled date to file semi-annual securities report: November 6, 2026 Scheduled date to commence dividend payments: December 1, 2026 Preparation of supplementary material on financial results: Yes Holding of financial results meeting: Yes (for institutional investors and analysts) (Amounts less than one million yen are rounded down) 1. Consolidated financial results for the six months ended September 30, 2026 (from April 1, 2026 to September 30, 2026) (1) Consolidated operating results (cumulative) Percentages indicate year-on-year changes Net sales Operating profit Ordinary profit Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Six months ended September 30, 2026 43,629 26.0 3,739 186.4 3,983 146.2 5,820 404.1 Six months ended September 30, 2025 34,634 8.6 1,305 175.0 1,618 － 1,154 － (Note) Comprehensive income Six months ended September 30, 2026: ¥6,517 million [221.3%] Six months ended September 30, 2025: ¥2,028 million [102.5%] Earnings per share Diluted earnings per share Yen Yen Six months ended September 30, 2026 156.71 － Six months ended September 30, 2025 31.10 － (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share Millions of yen Millions of yen % Yen As of September 30, 2026 150,930 94,509 62.6 2,543.78 As of March 31, 2026 151,550 88,577 58.4 2,385.12 (Reference) Equity As of September 30, 2026: ¥94,509 million As of March 31, 2026: ¥88,577 million 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 Year ended March 31, 2026 – 15.00 － 17.00 32.00 Year ending March 31, 2027 – 31.50 Year ending March 31, 2027 (Forecast) － 46.50 78.00 (Note) Revisions to the forecast of cash dividends most recently announced: Yes 3. Forecast of consolidated financial results for the 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 Earnings per share Full year Millions of yen 91,500 % 26.6 Millions of yen 8,310 % 127.9 Millions of yen 8,560 % 63.9 Millions of yen 9,660 % 144.5 Yen 260.07 (Note) Revisions to the forecast of financial results most recently announced: Yes
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* Notes (1) Significant changes in the scope of consolidation during the six months ended September 30, 2026: None (2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: Yes (Note) For further details, please refer to “2. Semi-annual consolidated financial statements and principal notes, (4) Notes to semi-annual consolidated financial statements, (Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements)” on page 7 of the accompanying materials. (3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements 1) Changes in accounting policies due to revisions to accounting standards and other regulations: None 2) Changes in accounting policies due to other reasons: None 3) Changes in accounting estimates: None 4) Restatement of prior period financial statements: None (4) Number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares) As of September 30, 2026 37,479,724 shares As of March 31, 2026 37,479,724 shares 2) Number of treasury shares at the end of the period As of September 30, 2026 326,581 shares As of March 31, 2026 342,428 shares 3) Average number of shares during the period (cumulative from the beginning of the fiscal year) Six months ended September 30, 2026 37,144,088 shares Six months ended September 30, 2025 37,126,960 shares * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. * Proper use of results forecasts and other special matters (Notes regarding forward-looking statements, etc.) The forward-looking statements, including results forecasts, contained in this document are based on information the Company has obtained as of the current point in time and certain assumptions the Company considers reasonable. The Company does not guarantee its achievement of the forward-looking statements. Actual results may differ significantly depending on a variety of factors. For the assumptions underlying the results forecasts and notes on their use, please refer to “1. Overview of operating results, etc., (3) Explanation of future forecast information such as forecast of consolidated financial results” on page 2 of the accompanying materials. (How to obtain supplementary material on financial results) The supplementary financial results materials are disclosed on TDnet and the Company’s website on the same date. (How to obtain information on the financial results briefing) The Company plans to hold a financial results briefing for institutional investors and analysts on Monday, October 26, 2026. The presentation materials to be used at the briefing are scheduled to be posted on TDnet and the Company’s website.
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1 Table of Contents - Attachments 1. Overview of operating results, etc. ................................................................................................................................................. 2 (1) Overview of operating results for the six months under review ................................................................................................ 2 (2) Overview of financial position for the six months under review ............................................................................................... 2 (3) Explanation of future forecast information such as forecast of consolidated financial results ................................................. 2 2. Semi-annual consolidated financial statements and principal notes .............................................................................................. 3 (1) Semi-annual consolidated balance sheets ................................................................................................................................. 3 (2) Semi-annual consolidated statements of income and semi-annual consolidated statements of comprehensive income ........... 4 Semi-annual consolidated statements of income .................................................................................................................... 4 Semi-annual consolidated statements of comprehensive income ........................................................................................... 5 (3) Semi-annual consolidated statements of cash flows ................................................................................................................. 6 (4) Notes to semi-annual consolidated financial statements ........................................................................................................... 7 (Notes on special accounting methods for preparing semi-annual consolidated financial statements) .................................. 7 (Notes on segment information, etc.) ..................................................................................................................................... 7 (Notes in the case of significant changes in amount of shareholders’ equity) ........................................................................ 8 (Notes on going concern assumption) .................................................................................................................................... 8 3. Supplementary information ............................................................................................................................................................ 8
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2 1. Overview of operating results, etc. (1) Overview of operating results for the six months under review In the six months ended September 30, 2026 (April 1, 2026 to September 30, 2026), the global economy remained generally firm, particularly in the United States. However, the outlook continued to be uncertain due to rising geopolitical risks, including tensions in the Middle East, developments in monetary policies across major countries, and uncertainties surrounding international trade policies. In the electronic parts industry, to which KOA CORPORATION (“the Company” or “we”) and its corporate group (“the Group” or “we”) belong, demand for AI-related equipment continued to expand. In addition, demand for automotive applications remained generally strong, supported by the electrification of vehicles and the growing adoption of advanced driver-assistance systems (ADAS). Demand for industrial equipment also continued to trend upward. Within this environment, our Group is advancing initiatives toward realizing our 2030 Vision in three phases. Since fiscal 2025, we have been pursuing the goals of Phase 2, the “2027 Medium-Term Management Plan (2025–2027),” under the concept of “achieving profit growth and efficiency with ROIC-based management.” Accordingly, we have focused on strengthening our product portfolio strategy, technology strategy, and corporate structure enhancement. On the sales front, demand expanded for automotive applications in China, from distributors in Europe, the United States and China, for AI-related equipment in Asia, and for industrial equipment in Japan. In addition, the depreciation of the yen had a positive impact on sales. As a result, net sales for the six months ended September 30, 2026 increased by ¥8,995 million, or 26.0% year on year, to ¥43,629 million. Profitability also improved despite rising raw material prices, mainly due to increased sales. Operating profit rose ¥2,434 million, or 186.4%, year on year to ¥3,739 million, while ordinary profit increased ¥2,365 million, or 146.2%, year on year to ¥3,983 million. In addition, our consolidated subsidiary, KOA ELECTRONICS(TAICANG)CO.LTD. recorded compensation for forced relocation of ¥3,098 million from the government in connection with the relocation of its factory, which was recognized as extraordinary income. As a result, profit attributable to owners of parent for the six months ended September 30, 2026 increased by ¥4,666 million, or 404.1%, year on year to ¥5,820 million. (2) Overview of financial position for the six months under review Total assets as of the end of the six months under review amounted to ¥150,930 million, a decrease of ¥620 million compared to the end of the previous fiscal year. The main factor for this was a decrease in property, plant and equipment, etc. Liabilities decreased by ¥6,552 million compared to the end of the previous fiscal year. The decrease was mainly attributable to a decrease in long-term borrowings and other liabilities. As a result of the above, the equity ratio was 62.6%. Regarding cash flows, cash flows from operating activities amounted to ¥5,116 million, cash flows from investing activities amounted to ¥(1,299) million and cash flows from financing activities amounted to ¥(5,564) million. Cash and cash equivalents at the end of the period totaled ¥25,835 million. (3) Explanation of future forecast information such as forecast of consolidated financial results The forecast of consolidated financial results for the fiscal year ending March 31, 2027 has been revised from that announced on July 23, 2026, at the time of the release of the first-quarter financial results. For details, please refer to the notice titled “Differences Between Interim Forecast and Actual Results and Revision of Full-Year Financial Forecast and Year-End Dividend Forecast for the Fiscal Year Ending March 31, 2027,” announced today, on October 23, 2026. (Matters to note regarding financial results forecasts) The forward-looking statements contained in this document, including revisions to financial forecasts, are based on information currently available to the Company and certain assumptions that the Company considers reasonable. These statements are not intended as a guarantee by the Company that such forecasts or forward-looking statements will be achieved. Actual results may differ materially due to various factors.
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3 2. Semi-annual consolidated financial statements and principal notes (1) Semi-annual consolidated balance sheets (Millions of yen) As of March 31, 2026 As of September 30, 2026 Assets Current assets Cash and deposits 28,997 27,333 Notes and accounts receivable - trade 15,958 18,018 Merchandise and finished goods 4,958 5,115 Work in process 4,944 4,797 Raw materials and supplies 3,565 4,001 Other 4,338 4,689 Allowance for doubtful accounts (60) (52) Total current assets 62,701 63,902 Non-current assets Property, plant and equipment Buildings and structures, net 41,559 40,500 Machinery, equipment and vehicles, net 19,808 19,437 Other 13,116 12,057 Total property, plant and equipment 74,485 71,995 Intangible assets 3,021 2,928 Investments and other assets Other 11,371 12,133 Allowance for doubtful accounts (30) (30) Total investments and other assets 11,341 12,103 Total non-current assets 88,848 87,027 Total assets 151,550 150,930 Liabilities Current liabilities Notes and accounts payable - trade 3,233 4,468 Short-term borrowings 9,881 7,508 Provision for bonuses 1,954 1,957 Other 9,773 7,142 Total current liabilities 24,843 21,078 Non-current liabilities Long-term borrowings 35,532 33,073 Liability for retirement benefits 580 572 Other 2,016 1,697 Total non-current liabilities 38,130 35,342 Total liabilities 62,973 56,420 Net assets Shareholders’ equity Share capital 6,033 6,033 Capital surplus 9,020 9,056 Retained earnings 57,747 62,936 Treasury shares (240) (229) Total shareholders’ equity 72,560 77,796 Accumulated other comprehensive income Valuation difference on available-for-sale securities 2,646 3,485 Foreign currency translation adjustment 11,852 11,767 Remeasurements of defined benefit plans 1,517 1,459 Total accumulated other comprehensive income 16,016 16,712 Total net assets 88,577 94,509 Total liabilities and net assets 151,550 150,930
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4 (2) Semi-annual consolidated statements of income and semi-annual consolidated statements of comprehensive income (Semi-annual consolidated statements of income) (Millions of yen) Six months ended September 30, 2025 Six months ended September 30, 2026 Net sales 34,634 43,629 Cost of sales 24,438 29,979 Gross profit 10,195 13,650 Selling, general and administrative expenses Salaries and allowances 3,171 3,465 Provision for bonuses 620 718 Other 5,098 5,727 Total selling, general and administrative expenses 8,890 9,910 Operating profit (loss) 1,305 3,739 Non-operating income Share of profit of entities accounted for using equity method 160 289 Gain on sale of scrap materials 151 209 Other 564 442 Total non-operating income 875 941 Non-operating expenses Interest expenses 315 392 Foreign exchange losses 63 212 Other 184 92 Total non-operating expenses 563 697 Ordinary profit (loss) 1,618 3,983 Extraordinary income Gain on sale of non-current assets 0 6 Gain on sale of investment securities 209 － Compensation for forced relocation － 3,098 Total extraordinary income 209 3,104 Extraordinary losses Loss on disposal of non-current assets 22 15 Loss on sale of non-current assets － 8 Impairment losses － 26 Total extraordinary losses 22 50 Profit before income taxes 1,805 7,037 Income taxes 650 1,216 Profit 1,154 5,820 Profit attributable to owners of parent 1,154 5,820
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5 (Semi-annual consolidated statements of comprehensive income) (Millions of yen) Six months ended September 30, 2025 Six months ended September 30, 2026 Profit 1,154 5,820 Other comprehensive income Valuation difference on available-for-sale securities 267 839 Foreign currency translation adjustment 647 (115) Remeasurements of defined benefit plans, net of tax 13 (58) Share of other comprehensive income of entities accounted for using equity method (54) 30 Total other comprehensive income 873 696 Comprehensive income 2,028 6,517 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,028 6,517
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6 (3) Semi-annual consolidated statements of cash flows (Millions of yen) Six months ended September 30, 2025 Six months ended September 30, 2026 Cash flows from operating activities Profit before income taxes 1,805 7,037 Depreciation 3,240 3,589 Increase (decrease) in provision for bonuses 313 0 Interest and dividends income (239) (151) Interest expenses 316 392 Share of loss (profit) of entities accounted for using equity method (160) (289) Loss (gain) on sale of investment securities (209) － Compensation for forced relocation － (3,098) Decrease (increase) in trade receivables (356) (2,179) Decrease (increase) in inventories (347) (432) Increase (decrease) in trade payables 536 1,374 Decrease (increase) in consumption taxes receivable 8 (189) Other 198 2 Subtotal 5,105 6,055 Interest and dividends received 294 309 Interest paid (306) (399) Income taxes paid (460) (1,758) Income taxes refund received 189 8 Proceeds from compensation for forced relocation － 901 Net cash provided by (used in) operating activities 4,822 5,116 Cash flows from investing activities Payments into time deposits (2,354) (1,316) Proceeds from withdrawal of time deposits 2,045 1,045 Purchase of property, plant and equipment (5,497) (1,711) Purchase of intangible assets (189) (19) Proceeds from sale of investment securities 242 － Other payments for investing activities (76) (124) Other proceeds from investing activities 464 755 Other 24 72 Net cash provided by (used in) investing activities (5,339) (1,299) Cash flows from financing activities Repayments of short-term borrowings (253) (554) Proceeds from short-term borrowings 98 100 Repayments of long-term borrowings (847) (4,484) Proceeds from long-term borrowings 2,386 － Dividends paid (554) (628) Other (61) 2 Net cash provided by (used in) financing activities 767 (5,564) Effect of exchange rate changes on cash and cash equivalents (6) 172 Net increase (decrease) in cash and cash equivalents 243 (1,574) Cash and cash equivalents at beginning of period 24,799 27,410 Cash and cash equivalents at end of period 25,043 25,835
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7 (4) Notes to semi-annual consolidated financial statements (Notes on special accounting methods for preparing semi-annual consolidated financial statements) (Calculation of tax expense) Tax expense is calculated by multiplying profit before income taxes by the estimated effective tax rate, which is reasonably estimated by applying tax effect accounting to profit before income taxes for the fiscal year including the six months under review. (Notes on segment information, etc.) I. Six months ended September 30, 2025 1. Information on net sales and profit (loss) by reportable segment (Millions of yen) Reportable segment Adjustment (Note 1) Amount recorded in semi-annual consolidated financial statements Japan Asia United States Europe Total Net sales Net sales to external customers 10,656 11,564 5,676 6,736 34,634 - 34,634 Inter-segment net sales or transfers 17,830 7,270 13 0 25,114 (25,114) - Total 28,487 18,834 5,690 6,737 59,748 (25,114) 34,634 Segment profit 901 471 59 363 1,796 (491) 1,305 (Notes) 1. The ¥(491) million adjustment in segment profit (operating profit) includes ¥(125) million in elimination of inter-segment transactions and a ¥(366) million adjustment in inventories, etc. 2. The breakdown of countries and regions for each segment other than Japan and the United States is as follows: (1) Asia … Taiwan, Singapore, People’s Republic of China, Hong Kong (2) Europe … Germany 2. Information on impairment losses for non-current assets and goodwill, etc. by reportable segment Not applicable. II. Six months ended September 30, 2026 1. Information on net sales and profit (loss) by reportable segment (Millions of yen) Reportable segment Adjustment (Note 1) Amount recorded in semi-annual consolidated financial statements Japan Asia United States Europe Total Net sales Net sales to external customers 13,517 15,424 6,856 7,830 43,629 － 43,629 Inter-segment net sales or transfers 22,662 9,248 2 － 31,913 (31,913) － Total 36,180 24,673 6,859 7,830 75,543 (31,913) 43,629 Segment profit 2,500 677 304 503 3,985 (246) 3,739 (Notes) 1. The ¥(246) million adjustment in segment profit (operating profit) includes ¥89 million in elimination of inter-segment transactions and a ¥(335) million adjustment in inventories, etc. 2. The breakdown of countries and regions for each segment other than Japan and the United States is as follows: (1) Asia … Taiwan, Singapore, People’s Republic of China, Hong Kong (2) Europe … Germany 2. Information on impairment losses for non-current assets and goodwill, etc. by reportable segment Not applicable.
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8 (Notes in the case of significant changes in amount of shareholders’ equity) Not applicable. (Notes on going concern assumption) Not applicable. 3. Supplementary information Orders received The following table represents orders received by segment in the six months under review: Name of segment Net orders (Millions of yen) YoY (%) Balance of orders (Millions of yen) YoY (%) Japan 16,819 151.1 9,225 185.3 Asia 20,763 171.6 9,471 247.0 United States 7,582 134.8 3,129 189.3 Europe 8,041 118.0 1,415 131.6 Total 53,206 149.1 23,241 201.4