Interim report
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Disclaimer : This document is an English translation of the original document in Japanese and has been prepared solely for reference purposes . In the event of any discrepancy between this English translation and the original in Japanese , the original shall prevail in all respects . Consolidated Financial Results for the Three Months Ended June 30 , 2026 [ Japanese GAAP ] Accounting Financial A Standards F FASF ndation MEMBERSHIP August 7 , 2026 Company name : RIX CORPORATION Stock exchange listing : Tokyo Stock Exchange and Fukuoka Stock Exchange Code number : 7525 URL : https://www.rix.co.jp/en/ Representative : Takashi Yasui , Representative Director , President and Executive Officer Contact : Kenji Oganna , Director and Senior Executive Officer & Division Manager - Administration Phone : + 81-92-472-7311 Scheduled date of commencing dividend payments : Preparation of supplementary explanatory materials on financial results : Yes Holding of financial results briefing : None ( Amounts of less than one million yen are rounded down . ) 1. Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( April 1 , 2026 – June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( % indicates changes from the previous corresponding period . ) Profit attributable to owners of parent Million yen Net sales Operating profit Ordinary profit Three months ended June 30 , 2026 June 30 , 2025 Million yen 13,597 12,340 % Million yen % 10.2 ( 0.2 ) 874 36.9 Million yen % 976 33.7 730 ( 26.0 ) ( Note ) Comprehensive income : Three months ended June 30 , 2026 : ¥ 927 million [ 113.4 % ] Three months ended June 30 , 2025 : ¥ 434 million [ ( 39.9 ) % ] 639 ( 19.2 ) % 636 26.6 502 ( 12.5 ) Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30 , 2026 June 30 , 2025 78.56 62.09 ( 2 ) Consolidated Financial Position Total assets Net assets Equity ratio As of June 30 , 2026 Million yen 45,870 Million yen % 29,349 62.9 March 31 , 2026 47,505 29,187 60.4 ( Reference ) Equity : As of June 30 , 2026 : ¥ 28,839 million As of March 31 , 2026 : ¥ 28,697 million
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2. Dividends Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 – 64.00 – 93.00 157.00 Fiscal year ending March 31, 2027 – Fiscal year ending March 31, 2027 (Forecast) 79.00 – 83.00 162.00 (Note) Revision to the forecast for dividends announced most recently: None 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2027 (April 1, 2026–March 31, 2027) (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen First half 28,600 9.2 2,050 22.3 2,140 17.2 1,460 14.2 179.97 Full year 58,000 3.9 4,220 19.3 4,360 11.9 3,000 (5.7) 369.80 (Note) Revision to the financial results forecast announced most recently: None * Notes: (1) Significant changes in the scope of consolidation during the period: Yes Newly included: 1 company (Company name: RIX INDIA TRADING & SERVICE PVT. LTD.) Excluded: None (2) Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: Yes For further information, please refer to “(3) Notes to Quarterly Consolidated Financial Statements (Accounting Methods Adopted Particularly for the Preparation of Quarterly Consolidated Financial Statements)” on page 10 of the Attachments. (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1) above: Yes 3) Changes in accounting estimates: None 4) Retrospective restatement: None (4) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): June 30, 2026: 8,640,000 shares March 31, 2026: 8,640,000 shares 2) Total number of treasury shares at the end of the period: June 30, 2026: 534,059 shares March 31, 2026: 534,059 shares 3) Average number of shares outstanding during the period: Three months ended June 30, 2026: 8,105,941 shares Three months ended June 30, 2025: 8,098,374 shares * Review of the Japanese -language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None
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* Explanation of the proper use of financial results forecast and other notes The earnings forecasts and other forward -looking statements herein are based on information currently available to the Company and certain assumptions that the Company deems reasonable, and the Company does not in any way guarantee the achievement of the forecasts. Actual results may differ significantly from these forecasts due to a wide range of factors. Please refer to “(3) Explanation of Consolidated Financial Results Forecast and Other Forward- looking Information” on page 5 of the Attachments for the assumptions underlying the forecasts and precautions when using the forecasts.
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1 Table of Contents – Attachments 1. Qualitative Information on Quarterly Financial Results .......................................................................... 2 (1) Explanation of Operating Results ........................................................................................................ 2 (2) Explanation of Financial Position ........................................................................................................ 4 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .... 5 2. Quarterly Consolidated Financial Statements and Principal Notes .......................................................... 6 (1) Quarterly Consolidated Balance Sheets ............................................................................................... 6 (2) Quarterly Consolidated Statements of Income and Comprehensive Income ....................................... 8 (3) Notes to Quarterly Consolidated Financial Statements ...................................................................... 10 (Notes on Going Concern Assumption) ........................................................................................ 10 (Notes in Case of Significant Changes in Shareholders’ Equity) .................................................. 10 (Notes on Significant Changes in the Scope of Consolidation) .................................................... 10 (Accounting Methods Adopted Particularly for the Preparation of Quarterly Consolidated Financial Statements) ............................................................................. 10 (Changes in Accounting Policies) ............................................................................................. 10 (Segment Information, Etc.) .......................................................................................................... 11 (Notes on Statements of Cash Flows) ........................................................................................... 13 (Significant Subsequent Events)..................................................................................................... 13
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2 1. Qualitative Information on Quarterly Financial Results (1) Explanation of Operating Results During the three months ended June 30, 2026, the global economy was characterized by differences in business sentiment by region and demand area, while the impact of the worsening situation in the Middle East emerged. In the United States, although the economy faced downward pressure, particularly on personal consumption, due to factors such as rising prices driven by higher oil prices stemming from the worsening situation in the Middle East, investment in the thriving AI-related sector continued to be observed. In Europe, increased energy costs stemming from the worsening situation in the Middle East affected personal consumption. In China, the effects of the sluggishness in the real estate market continued to be observed. The Japanese economy experienced a lower number of foreign visitors year on year, and the service industry in Japan, which had show n a recovery trend , saw a slowdown. The manufacturing industry was supported by continued solid trends mainly in the buoyant semiconductor-related sector and capital investment to address labor shortages. However, as was the case globally, issues such as surging prices for resources and raw materials emerged due to the worsening situation in the Middle East, resulting in differences in business sentiment across demand sectors. Under these economic circumstances, the Group implemented measures under its three-year medium-term plan “GP2026.” As a result, for the three months ended June 30, 2026, the Group recorded net sales totaling ¥13,597 million (up 10.2% year on year), operating profit totaling ¥874 million (up 36.9% year on year), ordinary profit totaling ¥976 million (up 33.7% year on year), and profit attributable to owners of parent totaling ¥636 million (up 26.6% year on year). Operating results by reportable segment are as follows. The Group manages business performance by industry to which customers belong, and thus designates the following nine industries as reportable segments: “Steel and Iron,” “Automobile,” “Electronics and Semiconductor,” “Rubber and Tire,” “Machine Tools,” “High- performance Material,” “Environment,” “Paper and Pulp ,” and “Food, Medicine (Pharmaceuticals), and Cosmetics.” Since the first quarter of the fiscal year ending March 31, 2027, the Group has established the food, pharmaceutical, and cosmetics industries—which the Group recognizes as growth fields —as a new reportable segment. The f ood, pharmaceutical, and cosmetics industries have similar standards for quality control required by customers, and the Group sells similar finished goods and merchandise for the manufacturing processes of customers. Therefore, the Group will make hypothesis-based proposals efficiently by making these industries into a separate reportable segment, thereby accelerating sales activities. With the establishment of this new segment, the business performance figures for the pharmaceutical and cosmetics industries included in “High-performance Material Segment” and those for the food industry included in “Other Segment” are consolidated accordingly. (Steel and Iron) On the global level, crude steel production decreased slightly year on year as a whole . Specifically, China, the world’s largest steel producer, saw crude steel production remain sluggish mainly due to the ongoing downturn in the real estate market. In contrast, India, a rapidly developing economy, saw a continued year-on-year increase in crude steel production. In Japan, while crude steel production increased slightly year on year, it remained at a low level due to continued factors such as delays in recovery in the construction industry caused by labor shortages. The Group focused on sales activities not only for production- proportional products but also for maintenance sectors on top of the further development of overseas markets. Consequently, net sales increased mainly due to sales of rolls for overseas steel mills as well as the winning contracts such as replacement of aging facilities in steel mills. As a result, net sales for the steel and iron industry totaled ¥3,924 million (up 2.0% year on year), and its segment profit totaled ¥498 million (up 7.1% year on year). (Automobile)
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3 On the global level, production and domestic sales of new energy vehicles remained weak in China, partly due to the expiration of tax incentive measures, while the number of exports increased. In India, where the economy is growing significantly, automobile production continued to be solid. In Japan, production remained at approximately the same level as in the same period of the previous year; however, the worsening situation in the Middle East had an impact, including production delays. The Group focused on sales and proposal activities in the battery and motor sectors, which are attracting attention in the CASE market. Consequently, net sales increased year on year, driven by sales of equipment and devices for overseas battery manufacturing lines and those for domestic battery manufacturing lines, among others. As a result, net sales for the automobile industry totaled ¥2,396 million (up 8.9% year on year), and its segment profit totaled ¥276 million (up 95.7% year on year). (Electronics and Semiconductor) On the global level, demand for logic semiconductors continued to increase with advances in AI -related technology development, resulting in higher global semiconductor sales. In Japan, sales related to semiconductor production equipment continued to increase year on year thanks to higher AI -related semiconductor demand linked to global trends. The Group focused on sales activities on the frontline and facilities and maintenance sectors, in addition to the repair and recycling businesses. Consequently, net sales increased mainly due to higher sales of our proprietary rotary joints for semiconductor production equipment, as well as sales of equipment for household appliance manufacturing lines. As a result, net sales for the electronics and semiconductor industry totaled ¥2,178 million (up 27.1% year on year) and its segment profit totaled ¥322 million (up 82.3% year on year). (Rubber and Tire) In Japan, sales of new vehicle tires and replacement tires remained at the same level as in the same period of the previous year, in line with trends in automobile production. The Group focused on sales activities on capital investment in addition to sales activities on development sectors. However, net sales decreased as there were no large projects unlike in the same period of the previous year , despite favorable factors such as sales of deodorizing equipment for the mixing process. As a result, net sales for the rubber and tire industry totaled ¥777 million (down 27.6% year on year) and its segment profit totaled ¥101 million (down 11.9% year on year). (Machine Tools) In the industry, machine tool orders for both domestic and overseas markets continued to increase, as orders for machine tools related to automotives and active AI investments continued to increase. The Group focused on the development of new uses and sales of equipment to cater to requests for five -axis machine tools and integration of machine tools as well as sales for ancillary equipment. Consequently, net sales increased mainly due to the increased sales of our proprietary rotary joints and sales of ancillary equipment for machine tools, in line with trends of the industry. As a result, net sales for the machine tools industry totaled ¥755 million (up 33.1% year on year) and its segment profit totaled ¥253 million (up 109.9% year on year). (High-performance Material) In the industry, domestic production of ethylene was sluggish, partly due to difficulties in procuring crude oil and naphtha stemming from the worsening situation in the Middle East. The Group focused on the repair and recycling businesses. Consequently, sales increased mainly due to sales of filter products and cleaning machines for the raw material process, as well as in-pipe deposit removal systems for high-performance material plants. As a result, net sales for the high- performance material industry totaled ¥556 million (up 25.4% year on year) and its segment profit totaled ¥74 million (up 25.9% year on year). (Environment)
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4 In the industry, orders of environment -related equipment decreased year on year, indicating a difference in demand between sectors. The Group focused on increasing its presence in the environment and energy industries and water treatment - related business, which are regarded as important in recent years. Consequently, sales increased mainly due to sales of equipment and machinery for sludge treatment facilities, waste gas treatment facilities for plants, and fire extinguishing equipment for waste-disposal facilities. As a result, net sales for the environmental industry totaled ¥703 million (up 44.6% year on year) and its segment profit totaled ¥80 million (up 152.6% year on year). (Paper and Pulp) In the industry, demand for overall paper products continued to decline, and production of paper products decreased for both domestic and overseas markets. The Group focused on biomass material CNF and energy/chemical material fields as well as further development of maintenance business for existing facilities. Consequently, sales were secured mainly due to the winning contracts for replacement of aging facilities and sales of equipment and machinery for boilers in paper mills. However, net sales decreased due to the absence of special demand that had occurred during the same period of the previous fiscal year. As a result, net sales for the paper and pulp industry totaled ¥233 million (down 3.6 % year on year) and its segment profit totaled ¥28 million (up 11.5% year on year). (Food, Medicine (Pharmaceuticals), and Cosmetics) In Japan, the food sector saw price increases in food products associated with rising raw materials prices, mainly due to the worsening situation in the Middle East. In the pharmaceutical sector, measures to respond to drug price reductions following the drug price revision in April were observed. In the cosmetics sector, sales of cosmetics products remained firm, supported by inbound tourism demand from foreign visitors. The Group focused on sales activities related to water treatment and digitalization to address labor shortages. Consequently, in the food sector, sales were secured, supported by work to enable remote monitoring of utility equipment, among others. In the pharmaceutical sector , sales were secured mainly due to sales of components to medical-equipment-related manufacturers. In the cosmetics sector, sales were secured , supported by the winning contracts for cleaning raw material residues in the bulk process, among others. As a result, net sales for the food, pharmaceutical, and cosmetics industries totaled ¥355 million (up 15.0% year on year) and its segment profit totaled ¥37 million (up 96.3% year on year). (2) Explanation of Financial Position (Assets) Current assets decreased 5.4% from the end of the previous fiscal year to ¥31,961 million. Primary factors for the decrease include a decrease of ¥1,857 million in trade receivables and a decrease of ¥516 million in cash and deposits, which were partially offset by an increase of ¥577 million in inventories Non-current assets increased 1.3% from the end of the previous fiscal year to ¥13,908 million. Primary factors for the increase include an increase of ¥ 361 million in investment securities , which w as partially offset by a decrease of ¥162 million in intangible assets. As a result, total assets decreased 3.4% from the end of the previous fiscal year to ¥45,870 million. (Liabilities) Current liabilities decreased 11.6% from the end of the previous fiscal year to ¥14,332 million. Primary factors for the decrease include a decrease of ¥3,506 million in trade payables , a decrease of ¥451 million in income taxes payable, and a decrease of ¥1,864 million in other, which were partially offset by an increase of ¥3,486 million in short-term borrowings and an increase of ¥440 million in provision for bonuses. Non-current liabilities increased 3.8% from the end of the previous fiscal year to ¥2,188 million. As a result, total liabilities decreased 9.8% from the end of the previous fiscal year to ¥16,520 million.
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5 (Net Assets) Net assets increased 0.6% from the end of the previous fiscal year to ¥29 ,349 million. Primary factors for the increase include an increase of ¥198 million in valuation difference on available-for-sale securities, which was partially offset by a decrease of ¥120 million in retained earnings. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information As of now, no revisions have been made to the financial results forecast announced on May 15, 2026. However, should the need to revise the forecast arise, we will promptly disclose the revision.
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6 2. Quarterly Consolidated Financial Statements and Principal Notes (1) Quarterly Consolidated Balance Sheets (Thousand yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 8,407,138 7,890,509 Notes receivable – trade 160,969 65,656 Electronically recorded monetary claims – operating 4,380,731 4,704,398 Accounts receivable – trade 16,282,374 14,196,596 Merchandise and finished goods 2,695,299 3,116,418 Work in process 824,925 909,124 Raw materials and supplies 309,487 381,911 Other 717,393 703,985 Allowance for doubtful accounts (6,091) (6,797) Total current assets 33,772,228 31,961,805 Non-current assets Property, plant and equipment 6,120,506 6,073,719 Intangible assets Other 1,626,678 1,464,390 Total intangible assets 1,626,678 1,464,390 Investments and other assets Investment securities 4,696,192 5,057,789 Other 1,644,117 1,672,535 Allowance for doubtful accounts (354,088) (360,138) Total investments and other assets 5,986,221 6,370,186 Total non-current assets 13,733,406 13,908,296 Total assets 47,505,634 45,870,102 Liabilities Current liabilities Notes payable – trade 54,647 25,181 Electronically recorded obligations – operating 4,189,444 1,997,264 Accounts payable – trade 6,037,306 4,752,260 Short-term borrowings 1,515,000 5,001,250 Current portion of long-term borrowings 32,316 32,316 Income taxes payable 835,239 383,539 Provision for bonuses – 440,063 Provision for bonuses for directors (and other officers) – 20,636 Other 3,544,785 1,679,826 Total current liabilities 16,208,739 14,332,338 Non-current liabilities Long-term borrowings 294,784 286,705 Provision for retirement benefits for directors (and other officers) 81,188 68,632 Retirement benefit liability 657,760 677,819 Other 1,075,476 1,155,348 Total non-current liabilities 2,109,208 2,188,504 Total liabilities 18,317,948 16,520,843
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7 (Thousand yen) As of March 31, 2026 As of June 30, 2026 Net assets Shareholders’ equity Share capital 827,900 827,900 Capital surplus 1,117,875 1,116,377 Retained earnings 24,534,334 24,413,817 Treasury shares (582,959) (582,959) Total shareholders’ equity 25,897,150 25,775,135 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,835,071 2,033,874 Foreign currency translation adjustment 711,688 784,669 Remeasurements of defined benefit plans 253,268 245,793 Total accumulated other comprehensive income 2,800,028 3,064,337 Non-controlling interests 490,506 509,786 Total net assets 29,187,685 29,349,259 Total liabilities and net assets 47,505,634 45,870,102
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8 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income Three Months Ended June 30 (Thousand yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales 12,340,601 13,597,700 Cost of sales 9,172,278 9,881,198 Gross profit 3,168,322 3,716,502 Selling, general and administrative expenses 2,529,097 2,841,608 Operating profit 639,225 874,893 Non-operating income Interest income 6,714 3,894 Dividend income 51,134 51,193 Share of profit of entities accounted for using equity method 33,337 27,249 Rental income from real estate 5,271 5,187 Foreign exchange gains – 14,297 Other 23,887 15,845 Total non-operating income 120,344 117,667 Non-operating expenses Interest expenses 2,494 11,876 Foreign exchange losses 25,639 – Other 581 3,881 Total non-operating expenses 28,716 15,757 Ordinary profit 730,853 976,803 Extraordinary income Gain on sale of non-current assets 4 10 Surrender value of insurance policies – 6,367 Total extraordinary income 4 6,377 Extraordinary losses Loss on sale of non-current assets 252 – Loss on retirement of non-current assets 0 577 Total extraordinary losses 252 577 Profit before income taxes 730,605 982,603 Income taxes 215,272 333,484 Profit 515,332 649,119 Profit attributable to non-controlling interests 12,491 12,287 Profit attributable to owners of parent 502,840 636,832
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9 Quarterly Consolidated Statements of Comprehensive Income Three Months Ended June 30 (Thousand yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit 515,332 649,119 Other comprehensive income Valuation difference on available-for-sale securities 105,216 170,309 Foreign currency translation adjustment (183,376) 71,406 Remeasurements of defined benefit plans, net of tax (4,653) (7,475) Share of other comprehensive income of entities accounted for using equity method 1,981 43,728 Total other comprehensive income (80,832) 277,968 Comprehensive income 434,499 927,088 Comprehensive income attributable to: Owners of parent 421,222 901,140 Non-controlling interests 13,276 25,947
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10 (3) Notes to Quarterly Consolidated Financial Statements (Notes on Going Concern Assumption) Not applicable. (Notes in Case of Significant Changes in Shareholders’ Equity) Not applicable. (Notes on Significant Changes in the Scope of Consolidation) RIX INDIA TRADING & SERVICE PVT. LTD., which was a previously non-consolidated subsidiary, has been included in the scope of consolidation since the first quarter of the fiscal year ending March 31, 2027 due to its increased importance. (Accounting Methods Adopted Particularly for the Preparation of Quarterly Consolidated Financial Statements) (Calculation of Tax Expenses) For calculation of tax expenses, the Group adopts a method whereby the effective tax rate for the profit before income taxes for the fiscal year under review, including the first quarter of the fiscal year ending March 31, 2027, after the application of tax effect accounting is reasonably estimated, and profit before income taxes is multiplied by such effective tax rate. (Changes in Accounting Policies) (Application of the Practical Guidelines on Accounting for Financial Instruments) The Company has applied the “Practical Guidelines on Accounting for Financial Instruments” (ASBJ Transferred Guidance No. 9, March 11, 2025) from the beginning of the first quarter of the current consolidated fiscal year. The application of the Practical Guidelines has no impact on the quarterly consolidated financial statements. (Changes in the Valuation Method of Inventories) Previously, the Company’s inventories were stated at cost primarily using the moving -average method as the valuation method. Since the beginning of the first quarter of the fiscal year ending March 31, 2027, the valuation method has been changed, and the inventories have been stated at cost primar ily using the monthly average method. The change was implemented to reflect economic realities more appropriately, taking the opportunity of the change in its core system. As the impact of the change is insignificant, the change has not been applied retrospectively.
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11 (Segment Information, Etc.) I For the Three Months Ended June 30, 2025 (from April 1, 2025 to June 30, 2025) 1. Information on Net Sales and Profit or Loss by Reportable Segment (Thousand yen) Reportable segment Steel and Iron Automobile Electronics and Semi- conductor Rubber and Tire Machine Tools High- performance Material Environment Net sales Net sales to outside customers 3,847,341 2,200,920 1,713,684 1,074,625 567,806 443,432 486,753 Inter-segment net sales or transfers – – – – – – – Total 3,847,341 2,200,920 1,713,684 1,074,625 567,806 443,432 486,753 Segment profit 464,854 141,446 176,879 115,377 120,607 59,082 31,733 Reportable segment Other (Note 1) Total Adjustment (Note 2) Amount recorded in quarterly consolidated statements of income (Note 3) Paper and Pulp Food, Pharmaceu- ticals, and Cosmetics Total Net sales Net sales to outside customers 242,150 308,695 10,885,409 1,455,192 12,340,601 – 12,340,601 Inter-segment net sales or transfers – – – – – – – Total 242,150 308,695 10,885,409 1,455,192 12,340,601 – 12,340,601 Segment profit 25,900 19,116 1,154,998 248,359 1,403,357 (764,132) 639,225 (Notes) 1. The “Other” category is a business segment which is not included in the reportable segments and includes businesses for the shipbuilding industry. 2. An adjustment of minus ¥764,132 thousand in segment profit is for general and administrative expenses which are not attributable to the reportable segments. 3. Segment profit is adjusted with operating profit on the Quarterly Consolidated Statements of Income. 2. Information on Impairment Losses on Non-current Assets and Goodwill by Reportable Segment (Significant Impairment Losses on Non-current Assets) Not applicable.
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12 II For the Three Months Ended June 30, 2026 (from April 1, 2026 to June 30, 2026) 1. Information on Net Sales and Profit or Loss by Reportable Segment (Thousand yen) Reportable segment Steel and Iron Automobile Electronics and Semi- conductor Rubber and Tire Machine Tools High- performance Material Environment Net sales Net sales to outside customers 3,924,213 2,396,718 2,178,290 777,569 755,980 556,243 703,750 Inter-segment net sales or transfers – – – – – – – Total 3,924,213 2,396,718 2,178,290 777,569 755,980 556,243 703,750 Segment profit 498,018 276,747 322,402 101,674 253,171 74,355 80,166 Reportable segment Other (Note 1) Total Adjustment (Note 2) Amount recorded in quarterly consolidated statements of income (Note 3) Paper and Pulp Food, Pharmaceu- ticals, and Cosmetics Total Net sales Net sales to outside customers 233,544 355,074 11,881,385 1,716,314 13,597,700 – 13,597,700 Inter-segment net sales or transfers – – – – – – – Total 233,544 355,074 11,881,385 1,716,314 13,597,700 – 13,597,700 Segment profit 28,866 37,531 1,672,934 214,039 1,886,974 (1,012,080) 874,893 (Notes) 1. The “Other” category is a business segment which is not included in the reportable segments and includes businesses for the shipbuilding industry. 2. An adjustment of minus ¥1,012,080 thousand in segment profit is for general and administrative expenses which are not attributable to the reportable segments. 3. Segment profit is adjusted with operating profit on the Quarterly Consolidated Statements of Income. 2. Changes in Reportable Segments, etc. Since the first quarter of the fiscal year ending March 31, 2027, the Group has established t he food, pharmaceutical, and cosmetics industries—which the Group recognizes as growth fields —as a new reportable segment. The f ood, pharmaceutical, and cosmetics industries have similar standards for quality control required by customers, and the Group sells similar finished goods and merchandise for the manufacturing process es of customers. Therefore, the Group will make hypothesis-based proposals efficiently by making these industries into a separate reportable segment, thereby accelerating sales activities. With the establishment of this new segment, the business performance figures for the pharmaceutical and cosmetics industries included in “High-performance Material Segment” and those for the food industry included in “Other Segment” are consolidated accordingly. For comparative purposes, the reportable segment information for the corresponding period of the previous fiscal year has been retrospectively restated to reflect the change. 3. Information on Impairment Losses on Non-current Assets and Goodwill by Reportable Segment (Significant Impairment Losses on Non-current Assets) Not applicable.
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13 (Notes on Statements of Cash Flows) Quarterly consolidated statements of cash flows for the three months ended June 30, 2026 have not been prepared. Depreciation (including amortization related to intangible assets) for the three months ended June 30 are as follows: (Thousand yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation 203,899 233,893 (Significant Subsequent Events) (Disposal of Treasury Shares as Restricted Share-Based Remuneration) The Company has resolved, at a meeting of the Board of Directors of the Company held on July 9, 202 6, to dispose of treasury shares as restricted share-based remuneration, as described below. 1. Outline of disposal (1) Date of payment August 5, 2026 (2) Class and number of shares to be disposed of 6,626 shares of common stock of the Company (3) Disposal price ¥3,500 per share (4) Total value of shares to be disposed ¥23,191,000 (5) Planned allottees 3,611 shares for three Directors* of the company 3,015 shares for five Executive Officers of the company * Excluding Directors Serving as Audit and Supervisory Committee Members and External Directors 2. Purpose and reason of disposal At the 76th Annual General Meeting of Shareholders held on June 23, 2022, the Company obtained shareholders’ approval to introduce a stock compensation plan (hereinafter the “Plan”) whereby it allots restricted shares to Directors of the Company (excluding Directors Serving as Audit and Supervisory Committee Members and External Directors; hereinafter the “Eligible Directors”) for the purpose of raising their motivation to contribute to raising the share price of the Company and enhance corporate value by sharing the benefits and risks of share price fluctuations with shareholders. In addition, related matters have been approved at the Annual General Meeting of Shareholders as follows: Under the Plan, the total amount of monetary remuneration receivables provided to Eligible Directors as remuneration, etc. for allotting restricted shares shall be set at no more than ¥30 million per year, and the total number of restricted shares allotted to Eligible Directors shall be up to 30,000 shares per year. The period in which the transfer of allotted shares is restricted shall be from the allotment date of the restricted shares to the date on which the planned allottee retires or resigns from all their positions as Director, or Executive Officer.