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 discrepan cy between this translated document and the Japanese original, the original shall prevail. Consolidated Financial Results f or the Six Months Ended September 30, 2026 [Under Japanese GAAP] October 26, 2026 Company name: SHIN-ETSU POLYMER Co., Ltd. Listing: Tokyo Stock Exchange Securities code: 7970 URL: https://www.shinpoly.co.jp/en/ Representative: Toshiaki Deto, Representative Director, President and Chief Executive Officer Inquiries: Osamu Kowada, Director, Managing Executive Officer Telephone: +81-3-5288-8404 Scheduled date to file semi-annual securities report: November 10, 2026 Scheduled date to commence dividend payments: November 26, 2026 Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for analysts) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the six months ended September 30, 2026 (from April 1, 2026 to September 30, 2026) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2026 64,325 14.4 9,354 31.6 9,132 26.0 6,095 11.2 September 30, 2025 56,215 2.7 7,110 2.7 7,247 9.3 5,483 19.5 Note: Comprehensive income For the six months ended September 30, 2026: ¥ 8,250 million [ 262.2 %] For the six months ended September 30, 2025: ¥ 2,277 million [ -77.8 %] Basic earnings per share Diluted earnings per share Six months ended Yen Yen September 30, 2026 75.79 75.14 September 30, 2025 68.12 67.72 (2) Consolidated financial position T otal assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % September 30, 2026 162,808 135,470 82.9 March 31, 2026 153,003 129,553 84.4 Reference: Equity As of September 30, 2026: ¥ 134,909 million As of March 31, 2026: ¥ 129,106 million 2 . Cash dividends A nnual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total dividends Yen Yen Yen Yen Yen Fiscal year ended March 31,2026 - 30.00 - 32.00 62.00 Fiscal year ending March 31,2027 - 36.00 Fiscal year ending March 31,2027 (Forecast) - 36.00 72.00 Note: Revisions to the forecast of cash dividends most recently announced: Yes Please refer to the “Notice Regarding Upward Revision to Consolidated Financial Results Forecast, Interim Dividend from Surplus, and Year-End Dividend Forecast” announced today (October 26,2026).
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3. Consolidated financial result forecasts for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 127,000 10.3 18,200 29.6 18,000 28.5 11,800 19.2 146.82 Note: Revisions to the financial result forecast most recently announced: Yes Please refer to the “Notice Regarding Upward Revision to Consolidated Financial Results Forecast, Interim Dividend from Surplus, and Year-End Dividend Forecast” announced today (October 26,2026). * Notes (1) Significant changes in the scope of consolidation during the period: None Newly included: - companies( ) Excluded: - companies( ) (2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement 1) Changes in accounting policies due to revisions to accounting standards and other regulations: None 2) Changes in accounting policies due to other reasons: None 3) Changes in accounting estimates: None 4) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares): As of September 30, 2026 82,623,376 shares As of March 31, 2026 82,623,376 shares (ii) Number of treasury shares at the end of the period: As of September 30, 2026 2,165,367 shares As of March 31, 2026 2,251,655 shares (iii) Average number of shares outstanding during the period: Six months ended September 30, 2026 80,423,200 shares Six months ended September 30, 2025 80,489,227 shares * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other special matters (Caution regarding forward-looking statements) The financial forecast and other forward-looking statements herein are based on information currently available to the Company and certain assumptions that the Company deems reasonable and are not intended as a guarantee that they will be achieved by the Company. Actual results may differ significantly from these forecasts due to various factors. (How to obtain the presentation materials for the financial results briefing) The Company plans to hold a financial results briefing for analysts on Friday, November 6, 2026. The materials used in this briefing will be posted on the Company’s website on the date of the briefing.
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Table of Contents - Attachments 1. Qualitative Information on Semi-annual Financial Results ................................................................. 2 (1) Explanation of Operating Results .......................................................................................................... 2 (2) Explanation of Financial Position ......................................................................................................... 3 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information .... 3 2. Semi-annual Consolidated Financial Statements and Principal Notes ................................................ 4 (1) Semi-annual Consolidated Balance Sheet ............................................................................................. 4 (2) Semi-annual Consolidated Statements of Income and Comprehensive Income ................................... 6 Semi-annual Consolidated Statement of Income ................................................................................... 6 Semi-annual Consolidated Statement of Comprehensive Income ......................................................... 7 (3) Semi-annual Consolidated Statements of Cash Flows .......................................................................... 8 (4) Notes to Semi-annual Consolidated Financial Statements ............................................................... 9 (Notes on going concern assumption).................................................................................................... 9 (Notes in case of significant changes in shareholders’ equity) .............................................................. 9 (Segment Information, etc.) ................................................................................................................... 9 Shin-Etsu Polymer Co., Ltd. (7970) Six Months Ended September 30, 2026 1
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1. Qualitative Information on Quarterly Financial Results (1) Explanation of Operating Results During the six months ended September 30, 2026, the global economy continued to recover moderately, supported by demand for AI-related products, despite heightened tensions in the Middle East and rising energy prices. In the United States , the economy remained resilient, supported by personal consumption and capital investment. In Europe, the economy recovered moderately, but inflationary pressures increased due to higher energy prices. In China, exports to the United States, ASEAN and other regions increased, while domestic demand remained sluggish against the backdrop of the real estate downturn, and the economy continued to show weakness. In India and the ASEAN region, economic conditions were generally firm, although rising prices caused by surging energy prices raised concerns about the future. The Japanese economy continued to recover moderately, supported by semiconductor -related capital investment and resilient personal consumption. Industries related to Shin-Etsu Polymer Group performed as follows. In the semiconductor industry, capital investment for AI servers expanded against the backdrop of the spread of generative AI, and demand for semiconductor products, particularly memory products, remained at a high level. In the automotive industry, sales of electrified vehicles expanded, reflecting demand influenced by fuel prices. While EV adoption advanced in China and Europe, electrification continued in Japan and North America, centered on hybrid vehicles. In this operating environment, the Group continued to focus its business activities on boosting sales and streamlining in the base areas, expanding capacity and searching for new themes in growth areas, in line with its medium-term management plan. In addition, during the current fiscal year, the Group executed an M&A transaction aimed at further strengthening its competitiveness. As a result, for the six months ended September 30, 2026, net sales totaled ¥64,325 million (up 14.4% year on year), operating profit amounted to ¥9,354 million (up 31.6% year on year), ordinary profit was ¥9,132 million (up 26.0% year on year), and profit attributable to owners of parent was ¥6,095 million (up 11.2% year on year). Operating results by segment are as follows. 1) Electronic Devices segment In the Electronic Devices segment, sales of automotive input devices increased year on year , supported by solid sales of hybrid vehicles. In addition, demand for gaskets for automotive applications remained stable, and demand for fire prevention cushions for EV batteries increased substantially as electrification progressed, resulting in year-on-year growth in component-related products. In non-automotive applications, connectors for LCDs and View/Light Control Film (VCF) were weak, while sales of connectors for testing electronic components increased year on year. As a result, for this business segment, net sales totaled ¥13,186 million (up 4.0% year on year), and segment profit (operating profit) amounted to ¥676 million (up 4.7% year on year). 2) Precision Molding Products segment In the Precision Molding Products segment, demand for semiconductor-related shipping containers and in- process containers remained at a high level globally. For OA device components, demand for rollers for multifunction printers remained stable, and rollers for printers also showed signs of recovery. Sales of carrier tape-related products increased year on year, as strong demand continued for applications for large electronic components used in AI servers and demand also increased for applications for small electronic components. Demand for silicone rubber molded products increased for components for medical equipment such as catheters. As a result, for this business segment, net sales totaled ¥34,028 million (up 16.6% year on year), and segment profit (operating profit) amounted to ¥6,727 million (up 21.9% year on year). Shin-Etsu Polymer Co., Ltd. (7970) Six Months Ended September 30, 2026 2
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3) Housing and Living Materials segment In the Housing and Living Materials segment, wrapping films continued to expand. In addition, demand for wire coating applications for semiconductor manufacturing equipment and FA equipment using functional compounds remained at a high level. Shipments of these high-value- added proprietary products expanded, resulting in sales exceeding the year-ago level. As a result, for this business segment, net sales totaled ¥12,077 million (up 11.1% year on year), and segment profit (operating profit) amounted to ¥1,632 million (up 109.0% year on year). 4) Others segment In the Others segment, net sales totaled ¥5,032 million (up 44.7% year on year), and segment profit (operating profit) amounted to ¥317 million (up 91.1% year on year). (2) Explanation of Financial Position Total assets as of the end of the six months under review amounted to ¥162,808 million (an increase of ¥9,804 million from the end of the previous fiscal year). This was mainly attributable to increases of ¥5,033 million in cash and deposits, ¥3,514 million in notes and accounts receivable-trade, and contract assets, ¥1,123 million in construction in progress, ¥817 million in raw materials and supplies, and ¥763 million in electronically recorded monetary claims-operating, despite decreases of ¥751 million in merchandise and finished goods and ¥511 million in buildings and structures, net. Total liabilities as of the end of the six months under review stood at ¥27,337 million (an increase of ¥3,887 million from the end of the previous fiscal year). This result was mainly due to increases of ¥1,744 million in notes and accounts payable -trade, ¥1,310 million in income taxes payable, and ¥982 million in accounts payable - other. Total net assets as of the end of the six months under review stood at ¥135,470 million (an increase of ¥5,917 million from the end of the previous fiscal year), mainly reflecting an increase of ¥3,523 million in retained earnings and an increase of ¥1,867 million in foreign currency translation adjustment due to the yen’ s depreciation against the presentation currencies of major consolidated subsidiaries overseas compared to the end of the previous fiscal year. As a result, the equity ratio decreased to 82.9% from 84.4% at the end of the previous fiscal year. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information The Company has revised the Consolidated F inancial Results Forecast for the fiscal year ending March 31, 2027, announced on July 23, 2026, in light of recent business conditions and performance trends. For details, please refer to t he “Notice Regarding Upward Revision to Consolidated Financial Results Forecast, Interim Dividend from Surplus, and Year-End Dividend Forecast” announced today (October 26, 2026). The financial results forecast is based on information currently available to the Company and certain assumptions considered reasonable, and actual financial results may differ significantly due to various factors. Shin-Etsu Polymer Co., Ltd. (7970) Six Months Ended September 30, 2026 3
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2. Semi-annual Consolidated Financial Statements and Primary Notes (1) Semi-annual Consolidated Balance Sheet (Millions of yen) As of March 31, 2026 As of September 30, 2026 Assets Current assets Cash and deposits 50,073 55,107 Notes and accounts receivable - trade, and contract assets 24,333 27,848 Electronically recorded monetary claims - operating 3,610 4,374 Merchandise and finished goods 12,974 12,223 Work in process 2,067 2,172 Raw materials and supplies 6,419 7,237 Accounts receivable - other 2,121 1,804 Other 548 631 Allowance for doubtful accounts (186) (109) Total current assets 101,964 111,290 Non-current assets Property, plant and equipment Buildings and structures, net 26,939 26,427 Machinery, equipment and vehicles, net 8,330 7,951 Land 6,849 6,861 Construction in progress 2,816 3,940 Other, net 2,522 2,585 Total property, plant and equipment 47,459 47,766 Intangible assets Software 715 608 Other 44 48 Total intangible assets 760 657 Investments and other assets Investment securities 1,149 1,569 Deferred tax assets 781 632 Other 888 892 Total investments and other assets 2,820 3,093 Total non-current assets 51,039 51,517 Total assets 153,003 162,808 Shin-Etsu Polymer Co., Ltd. (7970) Six Months Ended September 30, 2026 4
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(Millions of yen) As of March 31, 2026 As of September 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 10,638 12,383 Electronically recorded obligations - operating 984 825 Accounts payable - other 514 1,497 Income taxes payable 1,680 2,990 Accrued expenses 3,012 2,820 Provision for bonuses 1,579 1,778 Provision for bonuses for directors (and other officers) 59 27 Other 1,497 1,602 Total current liabilities 19,968 23,926 Non-current liabilities Retirement benefit liability 1,342 1,316 Other 2,139 2,094 Total non-current liabilities 3,482 3,411 Total liabilities 23,450 27,337 Net assets Shareholders' equity Share capital 11,635 11,635 Capital surplus 10,718 10,727 Retained earnings 95,795 99,318 Treasury shares (3,017) (2,902) Total shareholders' equity 115,132 118,779 Accumulated other comprehensive income Valuation difference on available-for-sale securities 529 817 Foreign currency translation adjustment 13,474 15,342 Remeasurements of defined benefit plans (30) (30) Total accumulated other comprehensive income 13,974 16,129 Share acquisition rights 446 561 Total net assets 129,553 135,470 Total liabilities and net assets 153,003 162,808 Shin-Etsu Polymer Co., Ltd. (7970) Six Months Ended September 30, 2026 5
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(2) Semi-annual Consolidated Statements of Income and Comprehensive Income Semi-annual Consolidated Statement of Income (Millions of yen) For the six months ended September 30, 2025 For the six months ended September 30, 2026 Net sales 56,215 64,325 Cost of sales 38,932 44,015 Gross profit 17,283 20,309 Selling, general and administrative expenses 10,173 10,955 Operating profit 7,110 9,354 Non-operating income Interest income 123 156 Gain on sale of investment securities 67 - Other 99 117 Total non-operating income 290 274 Non-operating expenses Interest expenses 19 20 Foreign exchange losses 115 464 Other 18 11 Total non-operating expenses 153 496 Ordinary profit 7,247 9,132 Extraordinary income Gain on reversal of share acquisition rights 8 7 Total extraordinary income 8 7 Extraordinary losses Loss on cancellation of outsourcing agreement - 49 Total extraordinary losses - 49 Profit before income taxes 7,256 9,090 Income taxes - current 1,876 2,961 Income taxes - deferred (103) 34 Total income taxes 1,773 2,995 Profit 5,483 6,095 Profit attributable to owners of parent 5,483 6,095 Shin-Etsu Polymer Co., Ltd. (7970) Six Months Ended September 30, 2026 6
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Semi-annual Consolidated Statement of Comprehensive Income (Millions of yen) For the six months ended September 30, 2025 For the six months ended September 30, 2026 Profit 5,483 6,095 Other comprehensive income Valuation difference on available-for-sale securities 38 287 Foreign currency translation adjustment (3,245) 1,867 Remeasurements of defined benefit plans, net of tax 2 (0) Total other comprehensive income (3,205) 2,155 Comprehensive income 2,277 8,250 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,277 8,250 Shin-Etsu Polymer Co., Ltd. (7970) Six Months Ended September 30, 2026 7
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(3) Semi-annual Consolidated Statement of Cash Flows (Millions of yen) For the six months ended September 30, 2025 For the six months ended September 30, 2026 Cash flows from operating activities Profit before income taxes 7,256 9,090 Depreciation 3,112 2,650 Amortization of goodwill 38 - Interest and dividend income (155) (191) Interest expenses 19 20 Foreign exchange losses (gains) 31 353 Loss (gain) on sale of investment securities (67) - Decrease (increase) in trade receivables (824) (3,714) Decrease (increase) in inventories 497 140 Increase (decrease) in trade payables (1,432) 1,270 Increase (decrease) in retirement benefit liability (45) (27) Increase/decrease in consumption taxes payable/consumption taxes refund receivable 1,488 323 Other, net 356 134 Subtotal 10,275 10,050 Interest and dividends received 163 199 Interest paid (18) (20) Income taxes refund (paid) (2,672) (1,565) Net cash provided by (used in) operating activities 7,748 8,664 Cash flows from investing activities Decrease (increase) in time deposits (268) (3,064) Purchase of property, plant and equipment (2,343) (1,612) Purchase of intangible assets (142) (29) Other, net 199 (28) Net cash provided by (used in) investing activities (2,554) (4,735) Cash flows from financing activities Dividends paid (2,170) (2,572) Proceeds from sale of treasury shares 172 107 Other, net (204) (204) Net cash provided by (used in) financing activities (2,201) (2,669) Effect of exchange rate change on cash and cash equivalents (1,649) 569 Net increase (decrease) in cash and cash equivalents 1,342 1,827 Cash and cash equivalents at beginning of period 42,736 47,013 Cash and cash equivalents at end of period 44,078 48,841 Shin-Etsu Polymer Co., Ltd. (7970) Six Months Ended September 30, 2026 8
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(4) Notes to Semi-annual Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Notes in case of significant changes in shareholders’ equity) Not applicable. (Segment information, etc.) Information on net sales, profits or losses by reportable segments For the six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) (Millions of yen) Reportable segment Others (Note) Amount recorded in Semi-annual Consolidated Statements of Income Electronic Devices Precision Molding Products Housing and Living Materials Total Net sales Net sales to outside customers 12,679 29,185 10,874 52,739 3,476 56,215 Inter-segment net sales or transfers - - - - - - Total 12,679 29,185 10,874 52,739 3,476 56,215 Segment profit (Operating profit) 646 5,516 781 6,944 166 7,110 (Note) “Others” is a business segment that is not included in the reportable segments and includes the constructing business, etc. For the six months ended September 30, 2026 (from April 1, 2026 to September 30, 2026) (Millions of yen) Reportable segment Others (Note) Amount recorded in Semi-annual Consolidated Statements of Income Electronic Devices Precision Molding Products Housing and Living Materials Total Net sales Net sales to outside customers 13,186 34,028 12,077 59,293 5,032 64,325 Inter-segment net sales or transfers － － － － － － Total 13,186 34,028 12,077 59,293 5,032 64,325 Segment profit (Operating profit) 676 6,727 1,632 9,036 317 9,354 (Note) “Others” is a business segment that is not included in the reportable segments and includes the constructing business, etc. Shin-Etsu Polymer Co., Ltd. (7970) Six Months Ended September 30, 2026 9