Interim report
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Accounting Landardo F Financial Results ( Consolidated ) for the Fiscal Year Ended June 30 , 2026 < Japanese GAAP > FASF MEMBERSHIP August 6 , 2026 Company name : Furuya Metal Co. , Ltd. Listing : Tokyo Stock code : 7826 URL : Representative : Inquiries : https://www.furuyametals.co.jp/english/ Takahito Furuya , President Shigeyuki Matsumoto , General Manager , Finance and Accounting Department TEL : + 81-3-5977-3377 Scheduled date of ordinary general meeting of shareholders : Scheduled date to commence dividend payments : Scheduled date to file Securities Report : Preparation of supplementary material on earnings : Holding of earnings performance review : September 29 , 2026 September 15 , 2026 September 28 , 2026 Yes Yes ( Amounts have been rounded down to the nearest million yen . ) 1. Consolidated earnings for the fiscal year ended June 30 , 2026 ( from July 1 , 2025 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( Percentages indicate year - on - year changes . ) Net sales Operating income Ordinary income Net income attributable to owners of parent Millions of yen Fiscal year ended June 30 , 2026 Fiscal year ended June 30 , 2025 Note : 100,139 57,379 % Millions of yen 74.5 24,794 % Millions of yen 160.0 % Millions of yen % 20.7 9,538 ( 2.8 ) 24,664 9,389 162.7 16,034 147.9 ( 12.2 ) 6,468 ( 12.7 ) Comprehensive income : Fiscal year ended June 30 , 2026 : Fiscal year ended June 30 , 2025 : 16,209 million yen [ 155.5 % ] 6,343 million yen [ ( 14.7 ) % ] Ordinary Net income per share Diluted net income per share Net income / equity income / total Operating income / net sales assets Yen Yen % % % Fiscal year ended June 30 , 2026 Fiscal year ended June 30 , 2025 652.00 649.87 22.5 18.5 24.8 263.29 262.42 10.4 7.9 16.6 Reference : Share of profit ( loss ) of entities accounted for using equity method As of June 30 , 2026 : ¥ - million As of June 30 , 2025 : ¥ - million ( 2 ) Consolidated financial position Total assets Net assets Equity ratio Net assets per share Millions of yen 142,960 123,864 Millions of yen % Yen 78,498 54.8 3,185.12 64,580 52.0 2,622.14 As of June 30 , 2026 : As of June 30 , 2025 : 78,351 million yen 64,441 million yen As of June 30 , 2026 As of June 30 , 2025 Reference : Equity capital : ( 3 ) Consolidated cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period
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Millions of yen Millions of yen Millions of yen Millions of yen Fiscal year ended June 30, 2026 15,763 (3,948) (17,290) 7,600 Fiscal year ended June 30, 2025 921 (4,935) 4,785 13,044 2. Cash dividends Annual dividends Total cash dividends (Total) Dividend payout ratio (consolidated) Ratio of dividends to net assets (consolidated) First quarter- end Second quarter- end Third quarter- end Fiscal year-end Total Yen Yen Yen Yen Yen Millions of yen % % Fiscal year ended June 30, 2025 – 0.00 – 96.00 96.00 2,359 36.5 3.8 Fiscal year ended June 30, 2026 – 0.00 – 165.00 165.00 4,058 25.3 5.7 Fiscal year ending June 30, 2027 (Forecast) – 0.00 – 180.00 180.00 – Note: Revisions to the forecasts of cash dividends most recently announced: Yes 3. Consolidated earnings forecasts for the fiscal year ending June 30, 2027 (from July 1, 2026 to June 30, 2027) (Percentages indicate year-on-year changes.) Net sales Operating income Ordinary income Net income attributable to owners of parent Net income per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full fiscal year 101,000 0.9 26,500 6.9 26,000 5.4 17,700 10.4 719.53
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* Notes (1) Significant changes in scope of consolidation during the period: None (2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections a. Changes in accounting policies due to revisions to accounting standards and other regulations: None b. Changes in accounting policies due to other reasons: None c. Changes in accounting estimates: None d. Restatement of prior period financial statements after error corrections: None (3) Number of issued shares (common shares) a. Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 25,389,636 shares As of June 30, 2025 25,389,636 shares b. Number of treasury shares at the end of the period As of June 30, 2026 790,331 shares As of June 30, 2025 813,595 shares c. Average number of shares during the period Fiscal year ended June 30, 2026 24,592,042 shares Fiscal year ended June 30, 2025 24,568,280 shares (Reference) Overview of non-consolidated earnings 1. Non-consolidated earnings for the fiscal year ended June 30, 2026 (from July 1, 2025 to June 30, 2026) (1) Non-consolidated operating results (Percentages indicate year-on-year changes.) Net sales Operating income Ordinary income Net income Millions of yen % Millions of yen % Millions of yen % Millions of yen % Fiscal year ended June 30, 2026 100,121 74.6 24,613 160.2 24,566 161.7 15,976 154.4 Fiscal year ended June 30, 2025 57,347 20.8 9,459 (2.9) 9,387 (12.5) 6,279 (15.8) Net income per share Diluted net income per share Yen Yen Fiscal year ended June 30, 2026 649.65 647.52 Fiscal year ended June 30, 2025 255.60 254.77 (2) Non-consolidated financial position Total assets Net assets Equity ratio Net assets per share Millions of yen Millions of yen % Yen As of June 30, 2026 142,495 77,845 54.6 3,161.39 As of June 30, 2025 123,429 64,157 51.9 2,607.42 Reference: Equity capital: As of June 30, 2026: 77,768 million yen As of June 30, 2025: 64,080 million yen
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* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation. * Proper use of earnings forecasts, and other special matters (Caution regarding forward-looking statements and others) The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual business and other results may differ substantially due to various factors.
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- 1 - [Attached Material] Index 1. Overview of operating results and others .................................................................................................................. 2 (1) Overview of operating results for the fiscal year ............................................................................................. 2 (2) Overview of financial position for the fiscal year............................................................................................. 3 (3) Overview of cash flows for the fiscal year ........................................................................................................ 3 (4) Outlook ................................................................................................................................................................ 3 2. Basic stance towards the selection of accounting standards ..................................................................................... 4 3. Consolidated financial statements and significant notes thereto .................................................................................... 5 (1) Consolidated balance sheet ................................................................................................................................... 5 (2) Consolidated statement of income and consolidated statement of comprehensive income .................................. 7 (Consolidated statement of income) ..................................................................................................................... 7 (Consolidated statement of comprehensive income) ............................................................................................ 8 (3) Consolidated statement of changes in equity ........................................................................................................ 9 (4) Consolidated statement of cash flows ................................................................................................................. 11 (5) Notes to the consolidated financial statements ............................................................................................... 12 (Notes on premise of going concern) ............................................................................................................... 12 (Notes on significant changes in the amount of shareholders’ equity) ......................................................... 12 (Additional information) .................................................................................................................................. 12 (Notes on segment information and other data) ............................................................................................. 13 (Per share information) ....................................................................................................................................... 17 (Significant subsequent events)........................................................................................................................ 18 4. Non-consolidated financial statements and significant notes thereto ........................................................................... 19 (1) Balance sheet ...................................................................................................................................................... 19 (2) Statement of income ........................................................................................................................................... 21 (3) Statement of changes in equity ........................................................................................................................... 22 5. Other ........................................................................................................................................................................... 24
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- 2 - 1. Overview of operating results and others (1) Overview of operating results for the fiscal year During the fiscal year under review (from July 1, 2025 to June 30, 2026), while U.S. economy remained steady, China’s economic recovery was continuously gradual. Due to persistently high raw material and energy prices as well as prolonged geopolitical risks, such as the situation in the Middle East, the outlook for the global economy remained uncertain. The domestic economy remained on a gradual recovery trend as improved corporate earnings fueled a rebound in capital investment and continued wage growth underpinned domestic demand. However, the economic outlook continued to warrant close attention due to various factors, including prolonged inflation and heightened volatility in interest rate and foreign exchange markets following the transition in domestic monetary policy. Under this business environment, demand for products for the digital sector remained solid due to increased investment in data centers driven by the growing use of generative AI. In addition, progress was made in research and development and efforts to pursue new projects in the green sector against a backdrop of global decarbonization initiatives and increased investment in clean energy. Furthermore, as precious metal prices stayed at elevated levels, fluctuations in market prices contributed to higher net sales, while managing procurement costs became a key priority. The Group promptly adapted to changes in the external environment, including supply-demand trends and foreign exchange movements, while promoting higher value-added products and strengthening its stable supply capabilities. The yen continued to weaken throughout the fiscal year, which had a positive impact on business results through improved export profitability and increased value of overseas sales translated into yen. Under these circumstances, the Company’s consolidated business results for the fiscal year under review were as follows: net sales of 100,139 million yen (up 74.5% YoY), gross profit of 30,272 million yen (up 113.4% YoY), operating income of 24,794 million yen (up 160.0% YoY), ordinary income of 24,664 million yen (up 162.7% YoY), and net income attributable to owners of parent of 16,034 million yen (up 147.9% YoY). On a non-consolidated basis, the Company recognized impairment losses on non-current assets of 205 million yen under extraordinary losses for the fiscal year under review. The results by business segment are shown below. 1) Results by segment [Electronics] Orders for iridium crucibles for single-crystal growth equipment of scintillators for medical applications (material that emits fluorescence when hit with radiation) remained steady. In addition, orders for iridium and platinum crucibles for optical crystal growth equipment for isolators (components that transmit only light traveling in the forward direction and block light traveling in the reverse direction) used in optical communications between data centers were strong, helped by the development of new sales channels. Demand for equipment for SAW filters for smartphones also showed clearer signs of recovery. As a result, net sales were 10,807 million yen (up 83.0% YoY) and gross profit was 3,361 million yen (up 94.4% YoY). [Thin film] Orders for sputtering targets for HDDs (hard disk drives) used as storage media continued to be strong against a backdrop of robust data center investment, and orders for semiconductors targets increased. As a result, net sales were 18,034 million yen (up 60.0% YoY) and gross profit was 9,494 million yen (up 120.5% YoY). [Thermal] Orders remained on a recovery trend as replacement demand for semiconductor manufacturing was firm, and investment was resumed and inventory adjustments ran their course at semiconductor manufacturing equipment makers and overseas semiconductor manufacturers. As a result, net sales were 6,688 million yen (up 37.6% YoY) and gross profit was 2,326 million yen (up 50.3% YoY). [Fine chemicals/Recycling] Orders for precious metal compounds for electrodes used in caustic soda production recovered. In addition, orders for compounds for OLED remained on a recovery trend, and orders for compounds for chemical plants began to recover. While temporary expenses were recorded in association with the review of recovery and refinement systems, net sales were 27,701 million yen (up 5.2% YoY) and gross profit was 9,161 million yen (up 41.8% YoY). [Supply chain support] With rising precious metal prices, there was strong demand for precious metal raw materials not related to orders for the Company’s products. As a result, net sales were 19,044 million yen (up 148.8% YoY), and gross profit was 2,331 million yen (up 2,291 million yen YoY).
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- 3 - 2) Overseas sales Overseas sales throughout the fiscal year under review were 72,640 million yen (accounting for 72.5% of total sales). By region, export sales to Asia were 39,146 million yen (53.9% of overseas sales), export sales to North America were 14,101 million yen (19.4% of overseas sales) and export sales to Europe were 19,393 million yen (26.7% of overseas sales). (2) Overview of financial position for the fiscal year Total assets at the end of the fiscal year under review were 142,960 million yen, which was up 19,096 million yen from the previous fiscal year-end. The primary factor behind the increase was increases of 5,645 million yen in merchandise and finished goods and 4,714 million yen in consumption taxes receivable. Total liabilities were 64,462 million yen, which was up 5,177 million yen from the previous fiscal year-end. The primary factors behind the increase were increases of 11,632 million yen in notes and accounts payable - trade and 6,763 million yen in income taxes payable, despite a decrease of 13,400 million yen in short-term loans payable. Total net assets were 78,498 million yen, which was up 13,918 million yen from the previous fiscal year-end. The primary factor behind the increase was an increase of 13,674 million yen in retained earnings. (3) Overview of cash flows for the fiscal year In the fiscal year under review, cash and cash equivalents totaled 7,600 million yen. (Cash flows from operating activities) Net cash provided by operating activities amounted to 15,763 million yen. This was mainly due to income before income taxes of 24,458 million yen, despite an increase in inventories of 9,536 million yen. (Cash flows from investing activities) Net cash used in investing activities amounted to 3,948 million yen. This was mainly due to purchase of property, plant and equipment of 3,010 million yen, and purchase of intangible assets of 776 million yen. (Cash flows from financing activities) Net cash used in financing activities amounted to 17,290 million yen. This was mainly due to cash dividends paid of 2,357 million yen and repayments of short-term loans payable of 13,400 million yen. Reference: Main cash flow indices Fiscal year ended June 30, 2022 Fiscal year ended June 30, 2023 Fiscal year ended June 30, 2024 Fiscal year ended June 30, 2025 Fiscal year ended June 30, 2026 Equity ratio (%) 50.2 50.4 53.5 52.0 54.8 Equity ratio based on market value (%) 82.0 95.0 95.2 50.1 139.3 Interest-bearing debt to cash flow ratio (years) – – 6.6 31.0 0.8 Interest coverage ratio (times) – – 3.5 0.7 16.8 Equity ratio: Equity capital divided by total assets Equity ratio based on market value: Market capitalization divided by total assets Interest-bearing debt to cash flow ratio: Interest-bearing liabilities divided by cash flows from operating activities Interest coverage ratio: Cash flows from operating activities divided by interest payments Note 1. Market capitalization is calculated based on the total number of issued shares less the number of treasury shares. Note 2. Interest-bearing debt refers to all those liabilities on which interest is paid that are recorded on the balance sheets. Note 3. Interest-bearing debt to cash flow ratio and interest coverage ratio for the fiscal years ended June 30, 2022 and 2023 are not shown, as cash flows from operating activities were negative. (4) Outlook Under its medium-term management plan, “KFK Vision 2030,” which began in the fiscal year ended June 30, 2026, the Company will accelerate growth by leveraging its core and new technologies, further strengthening its five business pillars, and actively expanding into new growth fields. In the electronics segment, the Company will strive to create high value-added products in the semiconductor field by centering on its bulk processing technology for iridium and platinum. In the thin film segment, the Company will introduce new products to the semiconductor field such as MEMS by centering on core technologies cultivated in
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- 4 - targets for HDDs. In the thermal segment, the Company will expand the production capacity for key products and focus on strengthening the development of new products. In the fine chemicals/recycling segment, the Company will work on the establishment of nano-alloy technology and aim to launch new products for green-related markets. Accordingly, the Company forecasts 101,000 million yen in net sales (up 0.9% YoY), 26,500 million yen in operating income (up 6.9% YoY), 26,000 million yen in ordinary income (up 5.4% YoY) and 17,700 million yen in net income attributable to owners of parent (up 10.4% YoY) in the fiscal year ending June 30, 2027. For the earnings forecasts, we assume an exchange rate of 155 yen to the dollar, taking into account the impact of the current level of precious metal prices. 2. Basic stance towards the selection of accounting standards The Company started preparing consolidated financial statements in the fiscal year ended June 30, 2018. Giving consideration to the possibility of comparing the consolidated financial statements between terms and with other companies, as well as the burden in terms of structural adjustments that would be required for preparing financial statements based on IFRS (International Financial Reporting Standards), the Company has a policy of preparing the consolidated financial statements based on the generally accepted accounting standards in Japan (Japanese GAAP). Concerning the policy for the application of IFRS, the Company will respond to this issue appropriately while giving consideration to various circumstances in Japan and overseas.
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- 5 - 3. Consolidated financial statements and significant notes thereto (1) Consolidated balance sheet (Millions of yen) As of June 30, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 13,047 7,602 Notes receivable - trade 143 127 Accounts receivable - trade 3,451 7,514 Merchandise and finished goods 4,146 9,791 Work in process 5,599 7,558 Raw materials and supplies 72,648 74,580 Consumption taxes receivable 498 5,212 Derivatives – 1,314 Other 174 1,424 Allowance for doubtful accounts (0) (0) Total current assets 99,708 115,126 Non-current assets Property, plant and equipment Buildings and structures 9,621 9,675 Accumulated depreciation (5,157) (5,359) Buildings and structures, net 4,463 4,316 Machinery, equipment and vehicles 15,020 15,835 Accumulated depreciation (5,560) (6,046) Machinery, equipment and vehicles, net 9,459 9,789 Land 3,009 3,009 Leased assets 1,469 1,469 Accumulated depreciation (973) (1,197) Leased assets, net 496 272 Construction in progress 1,860 4,292 Other 645 684 Accumulated depreciation (457) (516) Other, net 187 168 Total property, plant and equipment 19,477 21,850 Intangible assets Software in progress 2,952 3,731 Other 47 67 Total intangible assets 2,999 3,798 Investments and other assets Investment securities 52 55 Deferred tax assets 1,478 1,820 Other 150 311 Allowance for doubtful accounts (1) (1) Total investments and other assets 1,679 2,185 Total non-current assets 24,156 27,833 Total assets 123,864 142,960
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- 6 - (Millions of yen) As of June 30, 2025 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 22,343 33,975 Accounts payable - other 2,942 2,690 Short-term loans payable 13,400 – Current portion of long-term loans payable 4,374 4,559 Income taxes payable 1,125 7,888 Advances received 636 1,728 Asset retirement obligations – 48 Provision for bonuses 494 510 Provision for directors’ bonuses 111 220 Accounts payable - facilities 256 206 Lease obligations 123 105 Derivative liabilities 124 – Other 619 1,573 Total current liabilities 46,552 53,507 Non-current liabilities Long-term loans payable 10,826 9,237 Net defined benefit liability 980 918 Asset retirement obligations 42 23 Long-term accounts payable - other 401 401 Lease obligations 467 362 Other 13 10 Total non-current liabilities 12,731 10,954 Total liabilities 59,284 64,462 Net assets Shareholders’ equity Capital stock 10,662 10,662 Capital surplus 12,348 12,379 Retained earnings 42,654 56,328 Treasury shares (1,287) (1,250) Total shareholders’ equity 64,377 78,120 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1 4 Foreign currency translation adjustment 81 125 Remeasurements of defined benefit plans (18) 101 Total accumulated other comprehensive income 64 231 Subscription rights to shares 77 77 Non-controlling interests 61 69 Total net assets 64,580 78,498 Total liabilities and net assets 123,864 142,960
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- 7 - (2) Consolidated statement of income and consolidated statement of comprehensive income (Consolidated statement of income) (Millions of yen) Fiscal year ended June 30, 2025 Fiscal year ended June 30, 2026 Net sales 57,379 100,139 Cost of sales 43,191 69,866 Gross profit 14,188 30,272 Selling, general and administrative expenses 4,650 5,477 Operating income 9,538 24,794 Non-operating income Rental income from buildings 21 24 Foreign exchange gains 2,193 – Gain on valuation of derivatives – 1,439 Subsidy income 760 545 Other 33 60 Total non-operating income 3,009 2,069 Non-operating expenses Interest expenses 1,245 937 Foreign exchange losses – 1,204 Loss on valuation of derivatives 1,719 － Other 193 58 Total non-operating expenses 3,158 2,200 Ordinary income 9,389 24,664 Extraordinary losses Impairment losses 58 205 Loss on valuation of shares of subsidiaries and associates 116 – Total extraordinary losses 175 205 Income before income taxes 9,214 24,458 Income taxes - current 2,574 8,810 Income taxes - deferred 251 (394) Total income taxes 2,825 8,416 Net income 6,388 16,042 Net income (loss) attributable to non-controlling interests (80) 8 Net income attributable to owners of parent 6,468 16,034
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- 8 - (Consolidated statement of comprehensive income) (Millions of yen) Fiscal year ended June 30, 2025 Fiscal year ended June 30, 2026 Net income 6,388 16,042 Other comprehensive income Valuation difference on available-for-sale securities (1) 2 Foreign currency translation adjustment (38) 44 Remeasurements of defined benefit plans, net of tax (4) 119 Total other comprehensive income (44) 167 Comprehensive income 6,343 16,209 Comprehensive income attributable to Owners of parent 6,423 16,201 Non-controlling interests (80) 8
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- 9 - (3) Consolidated statement of changes in equity Fiscal year ended June 30, 2025 (Millions of yen) Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of current period 10,662 12,313 38,526 (1,323) 60,178 Changes of items during period Dividends of surplus (2,340) (2,340) Net income attributable to owners of parent 6,468 6,468 Purchase of treasury shares (0) (0) Disposal of treasury shares 38 26 65 Exercise of share acquisition rights (2) 9 6 Net changes of items other than shareholders’ equity Total changes of items during period – 35 4,127 35 4,198 Balance at end of current period 10,662 12,348 42,654 (1,287) 64,377 Accumulated other comprehensive income Subscription rights to shares Non- controlling interests Total net assets Valuation difference on available-for- sale securities Foreign currency translation adjustment Remeasure- ments of defined benefit plans Total accumulated other comprehensive income Balance at beginning of current period 2 119 (13) 108 83 141 60,512 Changes of items during period Dividends of surplus (2,340) Net income attributable to owners of parent 6,468 Purchase of treasury shares (0) Disposal of treasury shares 65 Exercise of share acquisition rights 6 Net changes of items other than shareholders’ equity (1) (38) (4) (44) (6) (80) (131) Total changes of items during period (1) (38) (4) (44) (6) (80) 4,067 Balance at end of current period 1 81 (18) 64 77 61 64,580
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- 10 - Fiscal year ended June 30, 2026 (Millions of yen) Shareholders’ equity Capital stock Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of current period 10,662 12,348 42,654 (1,287) 64,377 Changes of items during period Dividends of surplus (2,359) (2,359) Net income attributable to owners of parent 16,034 16,034 Purchase of treasury shares (0) (0) Disposal of treasury shares 31 36 68 Exercise of share acquisition rights – Net changes of items other than shareholders’ equity Total changes of items during period – 31 13,674 36 13,742 Balance at end of current period 10,662 12,379 56,328 (1,250) 78,120 Accumulated other comprehensive income Subscription rights to shares Non- controlling interests Total net assets Valuation difference on available-for- sale securities Foreign currency translation adjustment Remeasure- ments of defined benefit plans Total accumulated other comprehensive income Balance at beginning of current period 1 81 (18) 64 77 61 64,580 Changes of items during period Dividends of surplus (2,359) Net income attributable to owners of parent 16,034 Purchase of treasury shares (0) Disposal of treasury shares 68 Exercise of share acquisition rights – Net changes of items other than shareholders’ equity 2 44 119 167 – 8 175 Total changes of items during period 2 44 119 167 – 8 13,918 Balance at end of current period 4 125 101 231 77 69 78,498
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- 11 - (4) Consolidated statement of cash flows (Millions of yen) Fiscal year ended June 30, 2025 Fiscal year ended June 30, 2026 Cash flows from operating activities Income before income taxes 9,214 24,458 Depreciation 1,289 1,277 Impairment losses 58 205 Loss on valuation of shares of subsidiaries and associates 116 – Increase (decrease) in allowance for doubtful accounts 0 0 Interest expenses 1,245 937 Foreign exchange losses (gains) (2) 8 Loss (gain) on valuation of derivatives 1,719 (1,439) Subsidy income (760) (545) Decrease (increase) in notes and accounts receivable - trade 2,655 (4,043) Decrease (increase) in inventories (12,179) (9,536) Increase (decrease) in notes and accounts payable - trade 550 11,633 Increase (decrease) in advances received 577 1,092 Decrease (increase) in consumption taxes refund receivable 42 (4,714) Increase (decrease) in accounts payable - other (568) (245) Transfer from inventories to non-current assets (300) (1,384) Transfer from non-current assets to inventories 403 468 Other 251 319 Subtotal 4,314 18,493 Interest and dividend income received 9 13 Interest expenses paid (1,109) (1,003) Subsidies received 1,122 545 Income taxes paid (3,415) (2,285) Net cash provided by (used in) operating activities 921 15,763 Cash flows from investing activities Purchase of intangible assets (1,005) (776) Purchase of property, plant and equipment (3,909) (3,010) Payments into time deposits (2) (2) Proceeds from withdrawal of time deposits 2 2 Other (20) (162) Net cash provided by (used in) investing activities (4,935) (3,948) Cash flows from financing activities Net increase (decrease) in short-term loans payable 700 (13,400) Proceeds from long-term loans payable 11,000 3,300 Repayments of long-term loans payable (4,391) (4,704) Purchase of treasury shares (0) (0) Cash dividends paid (2,351) (2,357) Repayments of lease obligations (171) (129) Other 0 – Net cash provided by (used in) financing activities 4,785 (17,290) Effect of exchange rate change on cash and cash equivalents (31) 31 Net increase (decrease) in cash and cash equivalents 739 (5,444) Cash and cash equivalents at beginning of period 12,298 13,044 Increase in cash and cash equivalents resulting from merger 7 – Cash and cash equivalents at end of period 13,044 7,600
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- 12 - (5) Notes to the consolidated financial statements (Notes on premise of going concern) No items to report. (Notes on significant changes in the amount of shareholders’ equity) No items to report. (Additional information) (Reclassification between inventories and non-current assets) The Group has reviewed the usage status of its precious metal assets and reclassified part of them between inventories and property, plant and equipment due to the change in holding purpose. In the fiscal year ended June 30, 2026, the Group reclassified part of property, plant and equipment into inventories and part of inventories into property, plant and equipment, due to a change in the purpose of holding them. This has resulted in a decrease of 323 million yen in raw materials and supplies, an increase of 446 million yen in machinery, equipment and vehicles, and a decrease of 151 million yen in merchandise and finished goods. In addition, work in process decreased by 439 million yen, and construction in progress increased by 468 million yen. Fiscal year ended June 30, 2025 Fiscal year ended June 30, 2026 Change (Millions of yen) Change (Millions of yen) Merchandise and finished goods 185 (151) Raw materials and supplies (95) (323) Work in process 13 (439) Machinery, equipment and vehicles (228) 446 Construction in progress 124 468
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- 13 - (Notes on segment information and other data) [Segment information] 1. Overview of reportable segments The Group’s reportable segments are subject to a periodic review by the Board of Directors for the purposes of evaluating performance and determining the allocation of resources. We primarily manufacture and sell industrial precious metal products. The Group is made up of segments organized by product and service, and we have five reportable segments: “electronics,” “thin film,” “thermal,” “fine chemicals/recycling” and “supply chain support.” The products or services by each segment are as follows: Electronics: manufacturing and sales of electronic parts used in the manufacturing process for electronic products Thin film: manufacturing and sales of precious metal targets used in forming thin films Thermal: manufacturing and sales of temperature sensors primarily used in semiconductor manufacturing devices Fine chemicals/Recycling: manufacturing and sales of precious metal compounds, and recovery and refinement of precious metals Supply chain support: sales of main precious metal raw materials not related to orders for the Company’s products. 2. Method of calculating net sales, profit, loss, assets, liabilities or other items for each reportable segment The accounting method for reportable operating segments is in accordance with the accounting policies adopted for preparation of the consolidated financial statements. Reportable segment profit is presented on a gross profit basis. The Group does not allocate assets to operating segments because it does not use asset information for performance management. 3. Net sales, profit, loss, assets, liabilities or other items for each reportable segment and information on disaggregation of revenue Fiscal year ended June 30, 2025 (from July 1, 2024 to June 30, 2025) (Millions of yen) Reportable segment Other (Note 1) Total (Note 2) Electronics Thin film Thermal Fine chemicals/ Recycling Supply chain support Total Net sales Japan 3,283 2,633 2,757 12,238 368 21,280 791 22,072 Asia (Other than Japan) 35 5,042 1,887 581 6,299 13,847 540 14,387 Europe 12 773 32 10,087 935 11,842 – 11,842 North America 2,573 2,821 184 3,420 49 9,048 30 9,078 Revenue from contracts with customers 5,904 11,271 4,860 26,328 7,653 56,018 1,361 57,379 Sales to external customers 5,904 11,271 4,860 26,328 7,653 56,018 1,361 57,379 Intersegment sales or transfers – – – – – – – – Total 5,904 11,271 4,860 26,328 7,653 56,018 1,361 57,379 Segment profit 1,729 4,305 1,548 6,458 40 14,083 105 14,188 Note 1. The category “Other” is the operating segment not included in the reportable segments, and mainly includes the sale of purchased products. Note 2. The total segment profit is consistent with gross profit as recorded in the consolidated statement of income for the fiscal year ended June 30, 2025.
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- 14 - Fiscal year ended June 30, 2026 (from July 1, 2025 to June 30, 2026) (Millions of yen) Reportable segment Other (Note 1) Total (Note 2) Electronics Thin film Thermal Fine chemicals/ Recycling Supply chain support Total Net sales Japan 3,656 4,022 3,500 13,080 2,507 26,767 731 27,498 Asia (Other than Japan) 199 8,332 2,968 479 12,945 24,925 14,220 39,146 Europe 274 1,868 60 11,204 3,214 16,622 2,770 19,393 North America 6,676 3,811 159 2,936 376 13,960 140 14,101 Revenue from contracts with customers 10,807 18,034 6,688 27,701 19,044 82,276 17,863 100,139 Sales to external customers 10,807 18,034 6,688 27,701 19,044 82,276 17,863 100,139 Intersegment sales or transfers – – – – – – – – Total 10,807 18,034 6,688 27,701 19,044 82,276 17,863 100,139 Segment profit 3,361 9,494 2,326 9,161 2,331 26,675 3,597 30,272 Note 1. The category “Other” is the operating segment not included in the reportable segments and mainly includes the sale of purchased products. In the fiscal year ended June 30, 2026, the Group conducted sales of precious metals from raw material inventory to respond to strong demand of iridium and ruthenium that exceeds product inventory for supply chain support. As a result, sales of precious metals from raw materials inventory amounted to 16,558 million yen and gross profit was 3,270 million yen, both of which are included in the “Other” segment. Note 2. The total segment profit is consistent with gross profit as recorded in the consolidated statement of income for the fiscal year ended June 30, 2026.
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- 15 - [Related information] Fiscal year ended June 30, 2025 (from July 1, 2024 to June 30, 2025) 1. Information on products and services This is omitted as the categories are the same as those for product segments. 2. Information by regions (1) Net sales (Millions of yen) Region Japan Asia (Other than Japan) North America Europe Total Sales to external customers 22,072 14,387 9,078 11,842 57,379 Notes: 1. Net sales are classified by country or region based on customers’ location. 2. Net sales in Asia(outside Japan) include net sales of 8,235 million yen in China, which accounts for more than 10% of the net sales in the consolidated statement of income. 3. Net sales in North America include net sales of 8,920 million yen in America, which accounts for more than 10% of the net sales in the consolidated statement of income. 4. Net sales in Europe include net sales of 9,388 million yen in Germany, which accounts for more than 10% of the net sales in the consolidated statement of income. (2) Property, plant and equipment This is omitted as the amount of property, plant and equipment located in Japan accounts for more than 90% of the amount recorded in the consolidated balance sheet. 3. Information on major customers (Millions of yen) Customer’s name or trade name Net sales Name of relevant segment De Nora Permelec Ltd 8,780 Fine chemicals/Recycling De Nora Deutschland GmbH 9,159 Fine chemicals/Recycling [Information on impairment loss of non-current assets by reportable segment] This information is insignificant and has therefore been omitted. [Information on amortization of goodwill and unamortized balance by reportable segment] No items to report. [Information on gain on negative goodwill by reportable segment] No items to report. Fiscal year ended June 30, 2026 (from July 1, 2025 to June 30, 2026) 1. Information on products and services This is omitted as the categories are the same as those for product segments. 2. Information by regions (1) Net sales (Millions of yen) Region Japan Asia (Other than Japan) North America Europe Total Sales to external customers 27,498 39,146 14,101 19,393 100,139 Notes: 1. Net sales are classified by country or region based on customers’ location. 2. Net sales in Asia(outside Japan) include net sales of 27,107 million yen in China(including Hong Kong), which accounts for more than 10% of the net sales in the consolidated statement of income. 3. Net sales in North America include net sales of 13,179 million yen in America, which accounts for more than 10% of the net sales in the consolidated statement of income. 4. Net sales in Europe include net sales of 11,229 million yen in Germany, which accounts for more than 10% of the net sales in the consolidated statement of income. (2) Property, plant and equipment This is omitted as the amount of property, plant and equipment located in Japan accounts for more than 90% of the amount recorded in the consolidated balance sheet.
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- 16 - 3. Information on major customers (Millions of yen) Customer’s name or trade name Net sales Name of relevant segment De Nora Permelec Ltd 10,384 Fine chemicals/Recycling [Information on impairment loss of non-current assets by reportable segment] This information is insignificant and has therefore been omitted. [Information on amortization of goodwill and unamortized balance by reportable segment] No items to report. [Information on gain on negative goodwill by reportable segment] No items to report.
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- 17 - (Per share information) (Yen) Fiscal year ended June 30, 2025 Fiscal year ended June 30, 2026 Net assets per share 2,622.14 3,185.12 Net income per share 263.29 652.00 Diluted net income per share 262.42 649.87 Notes: 1. The basis for calculation of net assets per share is as follows. As of June 30, 2025 As of June 30, 2026 Total net assets (Millions of yen) 64,580 78,498 Amount deducted from the total net assets (Millions of yen) 138 146 [Of which subscription rights to shares (Millions of yen)] [77] [77] Amount of net assets related to common shares at the end of the period (Millions of yen) 64,441 78,351 Number of common shares used in the calculation of net assets per share at the end of the period (Thousands of shares) 24,576 24,599 2. The basis for calculation of net income per share and diluted net income per share is as follows. Fiscal year ended June 30, 2025 Fiscal year ended June 30, 2026 Net income per share Net income attributable to owners of parent (Millions of yen) 6,468 16,034 Net income not attributable to common shareholders (Millions of yen) – – Net income attributable to owners of parent pertaining to common shares (Millions of yen) 6,468 16,034 Average number of shares during the period (Thousands of shares) 24,568 24,592 Diluted net income per share Adjustments to net income attributable to owners of parent (Millions of yen) – – Increase in the number of common shares (Thousands of shares) 80 80 [Of which subscription rights to shares (Thousands of shares)] [80] [80] Overview of potential shares not included in the calculation of diluted net income per share because of having no dilutive effect – –
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- 18 - (Significant subsequent events) No items to report.
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- 19 - 4. Non-consolidated financial statements and significant notes thereto (1) Balance sheet (Millions of yen) As of June 30, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 12,586 6,949 Notes receivable - trade 143 127 Accounts receivable - trade 3,450 7,600 Merchandise and finished goods 4,146 9,791 Work in process 5,599 7,558 Raw materials and supplies 72,648 74,580 Prepaid expenses 136 131 Consumption taxes receivable 497 5,212 Derivatives – 1,314 Other 62 1,313 Allowance for doubtful accounts (0) (10) Total current assets 99,270 114,569 Non-current assets Property, plant and equipment Buildings 4,205 4,063 Structures 257 253 Machinery and equipment 9,448 9,781 Vehicles 4 2 Tools, furniture and fixtures 174 156 Land 3,009 3,009 Leased assets 496 272 Construction in progress 1,860 4,292 Total property, plant and equipment 19,457 21,832 Intangible assets Software in progress 2,952 3,731 Patent right 0 0 Software 43 63 Telephone subscription right 2 2 Right of using facilities 0 0 Trademark right 0 0 Total intangible assets 2,999 3,798 Investments and other assets Investment securities 51 54 Shares of subsidiaries and associates 59 254 Insurance funds 83 88 Deferred tax assets 1,456 1,846 Other 53 52 Allowance for doubtful accounts (1) (1) Total investments and other assets 1,701 2,295 Total non-current assets 24,158 27,925 Total assets 123,429 142,495
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- 20 - (Millions of yen) As of June 30, 2025 As of June 30, 2026 Liabilities Current liabilities Accounts payable - trade 22,343 33,975 Short-term loans payable 13,400 – Current portion of long-term loans payable 4,374 4,559 Lease obligations 123 105 Accounts payable - other 2,977 2,755 Income taxes payable 1,123 7,887 Asset retirement obligations – 48 Provision for bonuses 492 507 Provision for directors’ bonuses 111 220 Accounts payable - facilities 256 206 Advances received 636 1,728 Other 736 1,561 Total current liabilities 46,576 53,556 Non-current liabilities Long-term loans payable 10,826 9,237 Lease obligations 467 362 Long-term accounts payable - other 401 401 Provision for retirement benefits 953 1,065 Asset retirement obligations 42 23 Other 4 4 Total non-current liabilities 12,695 11,094 Total liabilities 59,272 64,650 Net assets Shareholders’ equity Capital stock 10,662 10,662 Capital surplus Legal capital surplus 10,631 10,631 Other capital surplus 1,716 1,747 Total capital surplus 12,348 12,379 Retained earnings Legal retained earnings 9 9 Other retained earnings General reserve 80 80 Retained earnings brought forward 42,265 55,882 Total retained earnings 42,355 55,971 Treasury shares (1,287) (1,250) Total shareholders’ equity 64,078 77,763 Valuation and translation adjustments Valuation difference on available-for-sale securities 1 4 Total valuation and translation adjustments 1 4 Subscription rights to shares 77 77 Total net assets 64,157 77,845 Total liabilities and net assets 123,429 142,495
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- 21 - (2) Statement of income (Millions of yen) Fiscal year ended June 30, 2025 Fiscal year ended June 30, 2026 Net sales Net sales of finished goods 49,590 64,455 Net sales of goods 7,757 35,666 Total net sales 57,347 100,121 Cost of sales Cost of finished goods sold Beginning finished goods inventory 1,588 2,750 Cost of products manufactured 36,438 54,083 Total 38,027 56,833 Transfer to other account (185) 13,440 Ending finished goods inventory 2,750 3,587 Cost of finished goods sold 35,461 39,805 Cost of goods sold Beginning merchandise inventory 2,309 1,395 Cost of purchased goods 6,790 21,573 Transfer to other account – 13,288 Total 9,099 36,257 Ending merchandise inventory 1,395 6,203 Cost of goods sold 7,703 30,053 Total cost of sales 43,165 69,859 Gross profit 14,181 30,262 Selling, general and administrative expenses 4,721 5,648 Operating income 9,459 24,613 Non-operating income Interest income 9 12 Gain on valuation of derivatives – 1,439 Dividend income 71 76 Rental income from buildings 21 24 Foreign exchange gains 2,189 – Subsidy income 760 545 Other 33 58 Total non-operating income 3,086 2,157 Non-operating expenses Interest expenses 1,245 937 Foreign exchange losses – 1,198 Loss on valuation of derivatives 1,719 – Other 193 68 Total non-operating expenses 3,159 2,205 Ordinary income 9,387 24,566 Extraordinary losses Impairment losses – 205 Loss on valuation of shares of subsidiaries and associates 300 – Total extraordinary losses 300 205 Income before income taxes 9,087 24,360 Income taxes - current 2,551 8,774 Income taxes - deferred 255 (390) Total income taxes 2,807 8,384 Net income 6,279 15,976
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- 22 - (3) Statement of changes in equity Fiscal year ended June 30, 2025 (Millions of yen) Shareholders’ equity Capital stock Capital surplus Retained earnings Legal capital surplus Other capital surplus Total capital surplus Legal retained earnings Other retained earnings Total retained earnings General reserve Retained earnings brought forward Balance at beginning of current period 10,662 10,631 1,681 12,313 9 80 38,326 38,415 Changes of items during period Dividends of surplus (2,340) (2,340) Net income 6,279 6,279 Purchase of treasury shares Disposal of treasury shares 38 38 Exercise of share acquisition rights (2) (2) Net changes of items other than shareholders’ equity Total changes of items during period – – 35 35 – – 3,939 3,939 Balance at end of current period 10,662 10,631 1,716 12,348 9 80 42,265 42,355 Shareholders’ equity Valuation and translation adjustments Subscription rights to shares Total net assets Treasury shares Total shareholders’ equity Valuation difference on available-for- sale securities Total valuation and translation adjustments Balance at beginning of current period (1,323) 60,068 2 2 83 60,154 Changes of items during period Dividends of surplus (2,340) (2,340) Net income 6,279 6,279 Purchase of treasury shares (0) (0) (0) Disposal of treasury shares 26 65 65 Exercise of share acquisition rights 9 6 6 Net changes of items other than shareholders’ equity (1) (1) (6) (7) Total changes of items during period 35 4,010 (1) (1) (6) 4,003 Balance at end of current period (1,287) 64,078 1 1 77 64,157
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- 23 - Fiscal year ended June 30, 2026 (Millions of yen) Shareholders’ equity Capital stock Capital surplus Retained earnings Legal capital surplus Other capital surplus Total capital surplus Legal retained earnings Other retained earnings Total retained earnings General reserve Retained earnings brought forward Balance at beginning of current period 10,662 10,631 1,716 12,348 9 80 42,265 42,355 Changes of items during period Dividends of surplus (2,359) (2,359) Net income 15,976 15,976 Purchase of treasury shares Disposal of treasury shares 31 31 Exercise of share acquisition rights Net changes of items other than shareholders’ equity Total changes of items during period – – 31 31 – – 13,616 13,616 Balance at end of current period 10,662 10,631 1,747 12,379 9 80 55,882 55,971 Shareholders’ equity Valuation and translation adjustments Subscription rights to shares Total net assets Treasury shares Total shareholders’ equity Valuation difference on available-for- sale securities Total valuation and translation adjustments Balance at beginning of current period (1,287) 64,078 1 1 77 64,157 Changes of items during period Dividends of surplus (2,359) (2,359) Net income 15,976 15,976 Purchase of treasury shares (0) (0) (0) Disposal of treasury shares 36 68 68 Exercise of share acquisition rights – – Net changes of items other than shareholders’ equity 2 2 – 2 Total changes of items during period 36 13,685 2 2 – 13,687 Balance at end of current period (1,250) 77,763 4 4 77 77,845
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- 24 - 5. Other No items to report.