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 . Accounting Standards Fo FASF Consolidated Financial Results for the Three Months Ended June 30 , 2026 MEMBERSHIP ( under IFRS ) Company name : Stock code : NIPPON SEIKI CO . , LTD . 7287 Stock exchange listing : URL : https://www.nippon-seiki.co.jp/ August 7 , 2026 Tokyo Stock Exchange Representative : Keiichi Nagano , President Contact : Motoki Kaneko , Operating Officer , Corporate Management Headquarters Scheduled date of commencement of dividend payment : Preparation of supplementary explanatory material : Quarterly results briefing : Tel . 0258-24-3311 Yes None ( Amounts of less than one million yen are rounded down to the nearest million yen ) 1. Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( April 1 , 2026 – June 30 , 2026 ) ( 1 ) Consolidated Financial Results ( Cumulative ) Revenue ( % : year - on - year change ) Total comprehensive income Operating profit Profit before tax Profit Profit attributable to owners of parent Three months ended Million yen % Million yen % Million yen % Million yen % Million yen June 30 , 2026 June 30 , 2025 83,252 9.2 76,224 ( 0.2 ) 2,191 44.0 3,206 70.9 1,503 102.5 1,517 1,522 ( 30.2 ) 1,875 16.6 742 188.0 701 256.7 ( 1,244 ) % Million yen 116.2 4,319 % Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30 , 2026 26.40 26.37 June 30 , 2025 12.24 12.22 ( 2 ) Consolidated Financial Position As of June 30 , 2026 March 31 , 2026 2. Cash Dividends Fiscal year ended March 31 , 2026 Fiscal year ended Equity attributable Total assets Total equity to owners of parent Million yen 345,280 Million yen 235,808 Million yen 233,565 347,265 233,880 231,592 Annual cash dividends per share Ratio of equity attributable to owners of parent to total assets % 67.6 66.7 End of 1Q End of 2Q End of 3Q End of year Total Yen Yen Yen Yen Yen 40.00 40.00 80.00 March 31 , 2027 Fiscal year ended March 31 , 2027 ( forecast ) 45.00 45.00 90.00 ( Note ) Revision from the most recent announcement of cash dividends forecasts : None 3. Consolidated Forecasts for the Fiscal Year Ending March 31 , 2027 ( April 1 , 2026 - March 31 , 2027 ) Revenue Operating profit ( % : year - on - year change ) profit attributable to owners of parent Basic earnings Million yen % Million yen % Million yen % per share Yen Fiscal year ending March 31 , 2027 ( Note ) 14,000 20.4 10,000 21.6 320,000 ( 2.4 ) Revision from the most recent announcement of consolidated financial forecasts : None 191.38
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* Notes (1) Significant changes in the scope of consolidation during the period: None Newly included ― companies Excluded ― company (2) Changes in accounting policies and accounting estimates 1) Changes in accounting policies required by IFRS: None 2) Changes other than 1): None 3) Changes in accounting estimates: None (3) Number of shares issued (common stock) 1) Number of shares issued at the end of the term including treasury stock As of June 30, 2026 58,471,299 shares As of March 31, 2026 58,471,299 shares 2) Number of treasury stock at the end of the term As of June 30, 2026 988,879 shares As of March 31, 2026 995,240 shares 3) Average number of shares during the term (cumulative) Three months ended June 30, 2026 57,459,504 shares Three months ended June 30, 2025 57,361,291 shares *Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an auditing firm: None *Explanation regarding the appropriate use of forecasts of financial results and other notes The consolidated forecasts presented on the previous page are projections made by management at NIPPON SEIKI CO., LTD. (hereinafter the “Company”) on the basis of information available at the time of preparation. For that reason, they involve risks and uncertainties.
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1 Table of Contents 1. Qualitative Information on Financial Results for the Period Under Review ……………………………………….2 (1) Summary of Business Performance ……………………………………………………………………………2 (2) Summary of Financial Position …………………………………………………………………………………3 (3) Earnings Forecasts and Other Forward-Looking Information ………………………………………………….3 2. Condensed Quarterly Consolidated Financial Statements …………………………………………………………….4 (1) Condensed Quarterly Consolidated Statements of Financial Position …………………………………………4 (2) Condensed Quarterly Consolidated Statements of Profit and Comprehensive Income………………………………6 (3) Condensed Quarterly Consolidated Statements of Changes in Equity .….….…………………………………….8 (4) Condensed Quarterly Consolidated Statements of Cash Flows ………….….……………………………………10 (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements …………………….……………12
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2 1. Qualitative Information on Financial Results for the Period Under Review (1) Summary of Business Performance During the current cumulative first quarter of the fiscal year ending March 2027 (April 1, 2026, to June 30, 2026), the Japanese economy was on a moderate recovery trend, reflecting improvement i n the employment and income situation and the effects of various policies. On the other hand, it is necessary to continue to pay cl ose attention to the effects of the situation in the Middle East, U.S. trade policy, and fluctuations in financial markets, in addition to trend of consumer sentiment caused by price increases. In other countries, although a moderate recovery continues in the U.S., the price increase of crude oil and related products due to the heightened tensions in the Middle East may affect future economic trends. In Asia, the economic slowdown in China has been progressing moderately against the background of stagnation in the real estate market, while a moderate recovery continued in Indonesia and signs of a pick-up were seen in Thailand. In India, the economy has continued to expand. Despite signs of a pickup in Europe, as in other regions, the impact of the situation in the Middle East warrants close attention. Under such circumstances, our group is promoting the following initiatives in the current fiscal year, which is the final yea r of the medium-term management plan (fiscal years ending March 2025 to March 2027), aiming to transform into a highly profitable s tructure resilient to environmental changes. 1) Enhance growth and profitability of automotive instruments and head-up displays 2) Accelerate sales of motorcycle instruments in emerging markets 3) Creation of innovative products, services and businesses 4) Improvement in capital efficiency In addition, to strengthen our capability to respond to changes in the business environment caused by intensified competition in global markets and increased geopolitical risks, we continue to engage in cost-reduction activities such as supply chain reforms, business process reforms, and product specification reviews. Furthermore, we are committed to ESG (environmental, social, and governance) management to improve our medium to long-term corporate value. As a result of the above, revenue for the current cumulative first quarter was 83,252 million yen (an increase of 9.2% year on year), operating income was 2,191 million yen (an increase of 44.0% year on year), and profit attributable to owners of the parent was 1,517 million yen (an increase of 116.2% year on year). Although sales of automotive parts to international affiliates decreased, revenue increased due to continued strong sales of motorcycle instruments in ASEAN, India, and Brazil, as well as the launch of new head -up display models and increased sales. Additi onally, the depreciation of the yen contributed to the revenue increase. Operating profit increased thanks to the higher sales of head- up displays and rigorous cost and expense management. Profits attributable to owners of the parent increased due to the r ise in operating profit and the foreign exchange losses recorded in the previous consolidated fiscal year turned to foreign exchange gains in the current consolidated fiscal year. Business overview of our reportable segments is as follows. The reportable segment classification has been changed since the first quarter of the current fiscal year. First, the "IT Solutions Business," which was previously included in "Other," is now included in the reportable segment. In addition, the "Resin Compound Business," which was previously included in the reportable segment, is now included in "Other." The following comparison of the same quarter of the previous fiscal year is based on the figures for the same quarter of the previous fiscal year reclassified into the new segment classification. Revenue attributable to the Automotive Business segment was 68,215 million yen (an increase of 9.3% year on year), and operat ing income was 1,848 million yen (an increase of 104.3% year on year), driven by the launch of new head-up display models, increased sales volume, and the impact of foreign exchange rates. Revenue attributable to the Consumer Business was 3,439 million yen (an increase of 3.4% year on year) due to the depreciation of the yen, although sales of air conditioning and housing equipment controllers remained flat year on year. Operating loss was 366 million yen (operating income of 66 million yen in the same period of the previous fiscal year), affected by increased product import cos ts from overseas subsidiaries due to the yen’s depreciation. Revenue attributable to the Car Sales Business was 6,712 million yen (an increase of 6.0% year on year), and operating income was 302 million yen (an increase of 31.1% year on year), supported by increased sales of new and used vehicles. Revenue attributable to the IT Solutions Business was 1,544 million yen (an increase of 22.0% year on year), and operating income was
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3 174 million yen (an increase of 61.7% year on year), due to increased sales to private companies. From the first quarter of this consolidated fiscal year, software development and sales, contract computing, and other activities are disclosed as reportable segments. Revenue attributable to the Other was 3,340 million yen (an increase of 15.1% year on year), and operating income was 312 million yen (an increase of 8.5% year on year). (2) Summary of Financial Position Our total assets as of the end of the current cumulative first quarter were 345,280 million yen, a decrease of 1,984 million yen from the end of the previous fiscal year, mainly due to a decrease in other current assets. Our total liabilities were 109,472 million yen, a decrease of 3,912 million yen from the end of the previous fiscal year, mai nly due to a decrease in Borrowings. Total equity was 235,808 million yen, an increase of 1,927 million yen from the end of the previous fiscal year, mainly due to an increase in other components of equity. (3) Earnings Forecasts and Other Forward-Looking Information We have not revised our forecast of consolidated business results for the fiscal year ending March 31, 2027, since we announced such forecast on May 15, 2026. The earnings forecast includes future forecasts based on currently available information. Please note that there are uncertainties in demand trends and foreign exchange rates in major markets, and actual results may differ from these forecasts. In addition, we plan to make Toyodenso Co., Ltd., which manufactures and sells switches for automobiles and motorcycles, a fully owned subsidiary during the fiscal year ending March 2027, as announced in the " Notice Concerning Execution of Share Transfer Agreements for the Acquisition of Shares of Toyodenso Co., Ltd. (To Make Them Subsidiaries)" on April 20, 2026. However, the impact of this acquisition has not been incorporated into the above consolidated results outlook for the fiscal year ending March 2027. The Company will promptly disclose the impact on our consolidated business performance and financial position resulting from the full acquisition of Toyodenso as soon as it becomes clear.
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4 2. Condensed Quarterly Consolidated Financial Statements (1) Condensed Quarterly Consolidated Statement of Financial Position (Unit: Million yen) March 31, 2026 June 30, 2026 Assets Current assets Cash and cash equivalents 51,922 52,742 Trade and other receivables 50,709 48,371 Other financial assets 13,179 12,022 Inventories 95,690 96,188 Other current assets 14,691 12,425 Total current assets 226,193 221,750 Non-current assets Property, plant and equipment 82,163 83,036 Goodwill and Intangible assets 5,632 5,078 Other financial assets 26,614 28,542 Deferred tax assets 6,301 6,535 Other non-current assets 360 336 Total non-current assets 121,071 123,530 Total assets 347,265 345,280
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5 (Unit: Million yen) March 31, 2026 June 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 50,456 52,470 Borrowings 11,309 6,456 Other financial liabilities 2,030 1,605 Income taxes payable 4,962 4,474 Short-term employee benefits 6,426 6,629 Provisions 244 231 Other current liabilities 4,368 4,092 Total current liabilities 79,799 75,961 Non-current liabilities Borrowings 15,137 13,550 Other financial liabilities 4,336 4,366 Long-term employee benefits 4,673 4,780 Provisions 437 439 Deferred tax liabilities 8,686 10,125 Other non-current liabilities 314 249 Total non-current liabilities 33,585 33,510 Total liabilities 113,384 109,472 Equity Share capital 14,494 14,494 Capital surplus 3,836 3,827 Retained earnings 158,795 158,014 Treasury shares (1,296) (1,288) Other components of equity 55,762 58,517 Equity attributable to owners of parent 231,592 233,565 Non-controlling interests 2,288 2,243 Total equity 233,880 235,808 Total liabilities and equity 347,265 345,280
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6 (2) Condensed Quarterly Consolidated Statements of Profit and Comprehensive income Comprehensive Quarterly Consolidated Statements of Profit For the three months ended June 30, 2025, and 2026 (Unit: Million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Revenue 76,224 83,252 Cost of sales (65,987) (71,599) Gross profit 10,236 11,652 Selling, general and administrative expenses (8,863) (9,366) Other income 210 143 Other expenses (62) (238) Operating profit 1,522 2,191 Finance income 602 1,099 Finance costs (249) (85) Profit before tax 1,875 3,206 Income tax expense (1,133) (1,702) Profit 742 1,503 Profit attributable to Owners of parent 701 1,517 Non-controlling interests 40 (13) Profit 742 1,503 Earnings per share Basic earnings per share (yen) 12.24 26.40 Diluted earnings per share (yen) 12.22 26.37
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7 Condensed Quarterly Consolidated Statements of Comprehensive Income For the three months ended June 30, 2025, and 2026 (Unit: Million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 742 1,503 Other comprehensive income Items that will not be reclassified to profit or loss-OCI Gains (losses) of financial assets measured at fair value through other comprehensive income 42 1,416 Total of items that will not be reclassified to profit or loss 42 1,416 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations (2,029) 1,400 Total of items that may be reclassified to profit or loss (2,029) 1,400 Other comprehensive income, net of tax (1,986) 2,816 Comprehensive income (1,244) 4,319 Comprehensive income attributable to Owners of parent (1,223) 4,272 Non-controlling interests (20) 47 Comprehensive income (1,244) 4,319
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8 (3) Condensed Quarterly Consolidated Statements of Changes in Equity For the three months ended June 30, 2025 (Unit: Million yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Financial assets measured at fair value through other comprehensive income Remeasurement of defined benefit liability (asset) Balance at beginning of period 14,494 5,395 154,320 (1,445) 8,542 – Comprehensive income Profit － － 701 － － － Other comprehensive income － － － － 42 － Total comprehensive income － － 701 － 42 － Transactions with owners Dividends － － (1,434) － － － Purchase of treasury shares － － － (0) － － Disposal of treasury shares － － － － － － Total transactions with owners – － (1,434) (0) － － Balance at end of period 14,494 5,395 153,588 (1,445) 8,584 － Equity attributable to owners of parent Non-controlling interests Total equity Other components of equity Total equity attributable to owners of parent Exchange differences on translation of foreign operations Total Balance at beginning of period 35,388 43,930 216,694 3,536 220,230 Comprehensive income Profit － － 701 40 742 Other comprehensive income (1,968) (1,925) (1,925) (61) (1,986) Total comprehensive income (1,968) (1,925) (1,223) (20) (1,244) Transactions with owners Dividends － － (1,434) (55) (1,489) Purchase of treasury shares － － (0) － (0) Disposal of treasury shares － － － － － Total transactions with owners － － (1,434) (55) (1,489) Balance at end of period 33,420 42,005 214,037 3,459 217,496
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9 For the three months ended June 30, 2026 (Unit: Million yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Financial assets measured at fair value through other comprehensive income Remeasurement of defined benefit liability (asset) Balance at beginning of period 14,494 3,836 158,795 (1,296) 9,594 – Comprehensive income Profit(loss) － － 1,517 － － － Other comprehensive income － － － － 1,416 － Total comprehensive income － － 1,517 － 1,416 － Transactions with owners Dividends － － (2,299) － － － Purchase of treasury shares － － － (0) － － Disposal of treasury shares － (8) － 8 － － Total transactions with owners – (8) (2,299) 8 － － Balance at end of period 14,494 3,827 158,014 (1,288) 11,010 － Equity attributable to owners of parent Non-controlling interests Total equity Other components of equity Total equity attributable to owners of parent Exchange differences on translation of foreign operations Total Balance at beginning of period 46,168 55,762 231,592 2,288 233,880 Comprehensive income Profit(loss) － － 1,517 (13) 1,503 Other comprehensive income 1,338 2,754 2,754 61 2,816 Total comprehensive income 1,338 2,754 4,272 47 4,319 Transactions with owners Dividends － － (2,299) (92) (2,391) Purchase of treasury shares － － (0) － (0) Disposal of treasury shares － － 0 － 0 Total transactions with owners － － (2,299) (92) (2,391) Balance at end of period 47,506 58,517 233,565 2,243 235,808
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10 (4) Condensed Quarterly Consolidated Statements of Cash Flows For the three months ended June 30, 2025, and 2026 (Unit: Million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Cash flows from operating activities Profit before tax 1,875 3,206 Depreciation and amortization 3,443 3,446 Impairment losses 3 66 Interest and dividend income (602) (730) Interest expenses 85 85 Loss (gain) on sale of fixed assets (2) (14) Decrease (increase) in trade and other receivables 4,981 2,996 Decrease (increase) in inventories (372) 79 Increase (decrease) in trade and other payables 4,101 576 Increase (decrease) in provisions 2 (13) Increase (decrease) in retirement benefit liability 60 130 Loss (gain) on foreign exchange (435) 208 Other 4,340 4,113 Subtotal 17,483 14,152 Interest and dividend of received 521 734 Interest paid (33) (73) Income taxes paid (1,328) (2,767) Net cash provided by (used in) operating activities 16,642 12,044 Cash flows from investing activities Net decrease (increase) in time deposits 3,049 1,255 Purchase of property, plant and equipment, and intangible assets (3,353) (3,657) Proceeds from sales of property, plant and equipment, and intangible assets 90 81 Purchase of investment securities (163) － Proceeds from sales of investment securities － 100 Payments for loans receivable (1) (2) Collection of loans receivable 1 1 Other (0) － Net cash provided by (used in) investing activities (378) (2,220)
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11 (Unit: Million yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Cash flows from financial activities Net increase (decrease) in short-term borrowings (6,186) (4,700) Repayments of long-term borrowings (1,906) (1,739) Repayments of lease liabilities (463) (444) Dividends paid to non-controlling interests (29) (170) Net decrease (increase) in treasury shares 0 (4) Dividends paid (1,435) (2,300) Net cash provided by (used in) financial activities (10,021) (9,359) Effect of exchange rate changes on cash and cash equivalents (29) 355 Net increase (decrease) in cash and cash equivalents 6,212 820 Cash and cash equivalents at beginning of period 35,305 51,922 Cash and cash equivalents at end of period 41,517 52,742
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12 (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements (Segment Information) Effective from the first quarter of the current fiscal year, the "IT Solutions Business," which was previously included in "Other," has been separately disclosed as a reportable segment due to its increased materiality. In addition, due to changes in the management classification, software development activities for the "Automotive Business, " which were previously included in “Other,” are now presented as part of the "Automotive Business." Conversely, the "Resin Compound Business, " which had previously been disclosed as a reportable segment, is now included in “Other” due to its reduced materiality. Segment information for the first quarter of the previous fiscal year has been restated in accordance with the revised segment classification. Revenue and segment results by reportable segment of the Group are as follows. For the three months ended June 30, 2025 (Notes) 1. “Other” is the business segment that is not categorized as reportable segment and includes resin compound business, transportation of cargoes,etc. 2. Adjustments of (76) million yen for segment profit are elimination of unrealized profits, etc. 3. Segment profit is adjusted to operating profit in the condensed quarterly consolidated statements of profit. For the three months ended June 30, 2026 (Notes) 1. “Other” is the business segment that is not categorized as reportable segment and includes resin compound business, transportation of cargoes, etc. 2. Adjustments of (80) million yen for Segment profits(loss) are elimination of unrealized profits, etc. 3. Segment profit(loss) is adjusted to operating profit in the condensed quarterly consolidated statements of profit. (Unit: Million yen) Reportable segments Other (Note1) Total Adjustments (Note2) Amounts stated in consolidated F/S （Note3） Automotive Business Consumer Business Car Sales IT Solutions Business Subtotal Revenue Customers 62,400 3,326 6,330 1,265 73,322 2,901 76,224 76,224 Intersegment – – 3 701 705 1,669 2,374 (2,374) – Total revenue 62,400 3,326 6,334 1,967 74,028 4,571 78,599 (2,374) 76,224 Segment profit 904 66 230 108 1,310 287 1,598 (76) 1,522 Finance income – – – – – – – 602 Finance costs – – – – – – – (249) Profit before tax – – – – – – – 1,875 (Unit: Million yen) Reportable segments Other (Note1) Total Adjustments (Note2) Amounts stated in consolidated F/S （Note3） Automotive Business Consumer Business Car Sales IT Solutions Business Subtotal Revenue Customers 68,215 3,439 6,712 1,544 79,912 3,340 83,252 – 83,252 Intersegment – – 5 806 811 1,435 2,247 (2,247) – Total revenue 68,215 3,439 6,717 2,350 80,723 4,776 85,500 (2,247) 83,252 Segment profit(loss) 1,848 (366) 302 174 1,959 312 2,272 (80) 2,191 Finance income – – – – – – – 1,099 Finance costs – – – – – – – (85) Profit before tax – – – – – – – 3,206