Interim report
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Note: This document has been translated fr om the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. November 5, 2025 Consolidated Financial Results for the Six Months Ended September 30, 2025 [Japanese GAAP] Company name: VALQUA, LTD. Listing: Tokyo Stock Exchange Securities code: 7995 URL: https://www.valqua.co.jp Representative: Toshiharu Takisawa, Repr esentative Director, President and COO Inquiries: Koshiro Endo, General Manager, Investor Relations Division TEL: +81-3-5434-7372 Scheduled date of filing semi-annual securities report: November 5, 2025 Scheduled date of commencing dividend payments: December 1, 2025 Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for institutional investors and securities analysts) (Amounts of less than one million yen are rounded down.) 1. Consolidated financial results for the six months ended September 30, 2025 (April 1, 2025 to September 30, 2025) (1) Consolidated operating results (cumulative) (% indicates 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, 2025 27,081 (10.0) 3,183 8.8 3,081 (2.0) 2,551 27.7 September 30, 2024 30,097 (3.5) 2,924 (24.5) 3,144 (22.6) 1,998 (25.9) (Note) Comprehensive income: Six months ended September 30, 2025 ¥2,021 million [(30.9%)] Six months ended September 30, 2024 ¥2,926 million [(11.2%)] Basic earnings per share Diluted earnings per share Six months ended Yen Yen September 30, 2025 144.93 － September 30, 2024 113.61 － (2) Consolidated financial position Total assets Net assets Shareholders’ equity ratio As of Millions of yen Millions of yen % September 30, 2025 79,792 51,300 64.3 March 31, 2025 77,823 50,521 64.9 (Reference) Shareholders’ equity As of September 30, 2025 ¥51,266 million As of March 31, 2025 ¥50,486 million 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, 2025 － 75.00 － 75.00 150.00 Fiscal year ending March 31, 2026 － 75.00 Fiscal year ending March 31, 2026 (Forecast) － 75.00 150.00 (Note) Revisions to the forecast of di vidends most recently announced: None 3. Consolidated financial results forecast for the fiscal year ending March 31, 2026 (April 1, 2025 to March 31, 2026) (% indicates year-on-year changes.) Net sales Operating pr ofit 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 62,000 3.1 7,000 23. 5 7,000 16.7 4,800 2.6 272.64 Revisions to the financial results forecast most recently announced: None
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VALQUA, LTD. (7995) Consolidated Financial Results for the Six Months Ended September 30, 2025 Notes (1) Significant changes in scope of consolidation during the period: Yes New: 1 (Company name) TORQUE SYSTEM Co., Ltd.; Exclusion: - (Company name) – (2) Adoption of accounting treatment specific to the preparation of consolidated financial statements: None (3) Changes in accounting policies and accounti ng estimates, and retrospective restatement (i) Changes in accounting policies due to revi sions of accounting standards, etc.: None (ii) Changes in accounting policies other than in (i): None (iii) Changes in accounting estimates: None (iv) Retrospective restatement: None (4) Number of issued shares (common shares) (i) Number of issued shares at the end of the period (including treasury shares) As of September 30, 2025 18,688,733 shares As of March 31, 2025 18,688,733 shares (ii) Number of treasury shar es at the end of the period As of September 30, 2025 1,067,314 shares As of March 31, 2025 1,092,793 shares (iii) Average number of shares outstandi ng during the period (cumulative from the beginning of the fiscal year): Six months ended September 30, 2025 17,605,923 shares Six months ended September 30, 2024 17,590,286 shares * Consolidated financial results for the second quarter (inter im period) are not subject to audit by certified public accountants or an audit firm * Explanation on appropriate use of financia l results forecasts and other special notes (Caution regarding forward-looking statements) Outlook for financial results and other forward-looking statements contained in this document are based on information currently available to the Company and certain assumptions deemed reasonable by the Company. The Company does not guarantee that those forecasts will be achieved. Actual financial results, etc. may differ significantly due to various factors. Please refer to “(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Statements” in “1. Overview of Operating Results, Etc.” on page 3 of the attached document for assumptions for financial results forecasts and cautionary notes in using financial results forecasts. (Method of obtaining supplementary materials on financial results) The supplementary materials on financial results will be m ade available on the Company website on November 5, 2025. https://www.valqua.co.jp
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VALQUA, LTD. (7995) Consolidated Financial Results for the Six Months Ended September 30, 2025 -1- ○ Table of Contents of the attached document 1. Overview of Operating Results, Etc. ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2 (1) Explanation of Operating Results ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2 (2) Overview of Financial Position for the Period Under Review ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2 (3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 3 2. Consolidated Financial Statements and Major Notes ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4 (1) Consolidated Balance Sheet ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4 (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 6 (Consolidated Statement of Income) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 6 (Consolidated Statement of Comprehensive Income)ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 7 (3) Consolidated Statements of Cash Flows ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 8 (4) Notes to Consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 9 (Notes on Segment Information, Etc.) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 9 (Notes When There Are Significant Changes in Amounts of Equity) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10 (Notes on Going Concern) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10 (Notes on Consolidated Statements of Cash Flows) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10 (Subsequent Events) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10 3. Supplementary Information ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11 (1) Orders Received ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11 (2) Overseas Net Sales ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11
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VALQUA, LTD. (7995) Consolidated Financial Results for the Six Months Ended September 30, 2025 -2- 1. Overview of Operating Results, Etc. (1) Explanation of Operating Results ● Overview During the six months ended Septem ber 30, 2025, the Group prom oted measures to develop production bases and increase capacity in preparation for a recovery in the semiconductor industry and future market expansion, while striving to secure earnings in an increasingly uncertain business environment, from the viewpoint of “striving to create new value to achieve the highest satisfaction of stakehol ders,” as set forth in the medium-term management plan “New Frontier 2026” (NF2026), which is in its second year. The Group reports the following consolidated results for the period under review: net sales of ¥27,081 million (down 10.0% year on year), operating profit of ¥3,183 million (up 8.8% year on year), ordinary profit of ¥3,081 million (down 2.0% year on year), and profit attributable to owners of parent of ¥2,551 million (up 27.7% year on year). Profit attributable to owners of parent exceeded the earnings forecast announced on May 14, 2025. This is mainly due to a decrease in income taxes - deferred as a result of the recording of deferred tax assets mainly related to the investment in a Chinese subsidiary that is planned to be transferred. In addition, orders received during the six months en ded September 30, 2025 totaled ¥26,861 million, and order backlog at the end of the period was ¥11,059 million. ● Status by Business Segment Financial results by business segment for the period under review are as follows. As the result of the sale of an operating company in the Silicon Wafer Reclaim Business, business segments have been changed from the current fiscal year. For details, please refer to the Segment Information, Etc. ・ Seal Products Business In the Seal Products Business, net sales were ¥20,261 million (up 1.5% year on year) as sales of high-performance seal products for the advanced industries market remained at a high level, despite the impact of a decrease in the number of equipment maintenance projects for the plant market. Segment profit was ¥3,147 million (up 32.8% year on year). ・ High Performance Plastics Products Business In the High Performance Plastics Products Business, net sales were ¥6,819 million (down 21.4% year on year) due to a significant decline in sales of fluorocarbon pr ocessed products for the advanced industries market, in addition to continued adjustments in demand for fluorocarbon tanks, valves, and other products for the plant market. Segment profit was ¥36 million (down 91.2% year on year), reflecting the recording of expenses related to the review of business structures and production bases. (2) Overview of Financial Position for the Period Under Review Total assets at the end of the period under review amounted to ¥79,792 million, an increase of ¥1,969 million from the end of the previous fiscal year. Current Assets amounted to ¥45,417 milli on, a decrease of ¥1,012 million.This was mainly due to an increase of ¥834 million in raw ma terials and supplies, an increase of ¥659 million in merchandise and finished goods, an increase of ¥412 million in electronically recorded monetary claims - operating, a decrease of ¥799 in cash and deposits, a decrease of ¥1,878 in notes and accounts receivable - trade, and contract assets, and a decrease of ¥553 million in accounts receivable - other which is included in other under current assets. Non-current assets amounted to ¥34,375 million, an increase of ¥2,982 million. This was mainly due to an increase of ¥578 million in property, plant and equipment, including buildings and structures, an increase of ¥1,749 million in goodwill, and an increase of ¥366 million in deferred tax assets included in other under investments and other assets among intangible assets. Liabilities amounted to ¥28,491 millio n, an increase of ¥1,189 million from t he end of the previous fiscal year. Current liabilities amounted to ¥15,570 mi llion, a decrease of ¥2,999 million. Th is was mainly due to a decrease of ¥1,614 million in short-term borrowings, a decrease of ¥1,010 million in current portion of long-term borrowings, and a decrease of ¥467 million in notes and accounts payable - trade. Non-current liabilities amounted to ¥12,921 million, an increase of ¥4,189 million. This was mainly due to an increase of ¥4,224 million in long-term borrowings. Net assets amounted to ¥51,300 million, an increase of ¥779 million from the end of the previous fiscal year. This was mainly due to an increase of ¥1,231 million in reta ined earnings, an increase of ¥133 million in valuation difference on available-for-sale securities, and a decrease of ¥608 million in foreign currency translation adjustment. As a result, the shareholders' equity ratio decreased by 0.6 percentage points to 64.3% from 64.9% at the end of the previous fiscal year.
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VALQUA, LTD. (7995) Consolidated Financial Results for the Six Months Ended September 30, 2025 -3- (3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Statements During the six months ended September 30, 2025, operating profit, ordinary profit, and profit attributable to owners of parent exceeded the forecast for the period. At the same time, we have noted many uncertainties that could have an impact on the global economy, such as reciprocal tariffs by the U.S., deterioration of diplomatic relations among countries, and t he situations in East Asia, Ukraine, and the Middle East. In addition, there are potenti al concerns surrounding the Group regarding delays in a full-fledged recovery in global capital expenditures and in semiconductor-related business conditions, as well as labor shortages, rising personnel costs, and other issues. Based on the above, we forecast net sa les of ¥62.0 billion, up 3.1% year on year, operating profit of ¥7.0 billion, up 23.5% year on year, ordinary profit of ¥7.0 billion, up 16.7% year on year, and profit attributable to owners of parent of ¥4.8 billion, up 2.6% year on year, for the fiscal year ending March 31, 2026. This forecast incorporates fluctuat ions in demand in the advanced industries market and others, as well as increases in energy and raw material prices and logistics costs to a certain extent. However, the forecast values and actual results may differ from each other should there ar ise an event that has a signif icant impact on the Group’s business environment, such as disruptions in global supply c hains, rapid fluctuations in foreign exchange rates, or further deterioration in geopolitical issues around the world.
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VALQUA, LTD. (7995) Consolidated Financial Results for the Six Months Ended September 30, 2025 -4- 2. Consolidated Financial Statements and Major Notes (1) Consolidated Balance Sheet (Millions of yen) As of March 31, 2025 As of September 30, 2025 Assets Current assets Cash and deposits 7,969 7,169 Notes and accounts receivable - trade, and contract assets 12,497 10,618 Electronically recorded monetary claims - operating 4,142 4,555 Merchandise and finished goods 6,542 7,202 Work in process 1,095 1,284 Raw materials and supplies 11,491 12,326 Other 2,845 2,399 Allowance for doubtful accounts (154) (139) Total current assets 46,430 45,417 Non-current assets Property, plant and equipment Buildings and structures, net 7,194 8,791 Land 4,169 4,231 Other, net 11,260 10,179 Total property, plant and equipment 22,624 23,202 Intangible assets Goodwill - 1,749 Other 1,876 1,780 Total intangible assets 1,876 3,530 Investments and other assets Investment securities 3,949 4,147 Other 2,977 3,523 Allowance for doubtful accounts (34) (29) Total Investments and other assets 6,891 7,642 Total non-current assets 31,393 34,375 Total assets 77,823 79,792
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VALQUA, LTD. (7995) Consolidated Financial Results for the Six Months Ended September 30, 2025 -5- (Millions of yen) As of March 31, 2025 As of September 30, 2025 Liabilities Current liabilities Notes and accounts payable - trade 5,809 5,342 Electronically recorded obligations - operating 901 923 Short-term borrowings 4,952 3,338 Current portion of long-term borrowings 2,000 990 Income taxes payable 1,206 832 Provision for bonuses 699 802 Provision for bonuses for directors (and other officers) 86 35 Other 2,912 3,305 Total current liabilities 18,569 15,570 Non-current liabilities Long-term borrowings 6,662 10,887 Retirement benefit liability 373 378 Other 1,695 1,656 Total non-current liabilities 8,732 12,921 Total liabilities 27,302 28,491 Net assets Shareholders’ equity Share capital 13,957 13,957 Capital surplus 4,756 4,789 Retained earnings 29,446 30,677 Treasury shares (1,904) (1,859) Total shareholders’ equity 46,256 47,566 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,307 1,441 Foreign currency translation adjustment 2,721 2,112 Remeasurements of defined benefit plans 201 146 Total accumulated other comprehensive income 4,230 3,700 Non-controlling interests 34 33 Total net assets 50,521 51,300 Total liabilities and net assets 77,823 79,792
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VALQUA, LTD. (7995) Consolidated Financial Results for the Six Months Ended September 30, 2025 -6- (2) Consolidated Statement of Income and Co nsolidated Statement of Comprehensive Income (Consolidated Statement of Income) (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Net sales 30,097 27,081 Cost of sales 18,036 15,486 Gross profit 12,060 11,594 Selling, general and administrative expenses 9,135 8,411 Operating profit 2,924 3,183 Non-operating income Interest income 17 23 Dividend income 33 28 Rental income from facilities 136 139 Share of profit of entities accounted for using equity method 118 7 Foreign exchange gains 141 － Other 98 98 Total non-operating income 545 298 Non-operating expenses Interest expenses 110 136 Rental expenses on facilities 105 138 Foreign exchange losses - 64 Other 109 60 Total non-operating expenses 325 400 Ordinary profit 3,144 3,081 Extraordinary income Gain on sale of non-current assets 2 37 Gain on sale of investments in capital of subsidiaries and associates 179 － Total extraordinary income 181 37 Extraordinary losses Loss on abandonment of non-current assets 33 6 Asbestos illness compensation money 42 － Business restructuring expenses 110 107 Total extraordinary losses 186 113 Profit before income taxes 3,140 3,005 Income taxes - current 1,043 816 Income taxes - deferred 72 (363) Total income taxes 1,115 452 Profit 2,024 2,553 Profit attributable to non-controlling interests 26 1 Profit attributable to owners of parent 1,998 2,551
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VALQUA, LTD. (7995) Consolidated Financial Results for the Six Months Ended September 30, 2025 -7- (Consolidated Statement of Comprehensive Income) (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Profit 2,024 2,553 Other comprehensive income Valuation difference on available-for-sale securities (274) 129 Foreign currency translation adjustment 1,307 (610) Remeasurements of defined benefit plans, net of tax (57) (54) Share of other comprehensive income of entities accounted for using equity method (74) 3 Total other comprehensive income 901 (531) Comprehensive income: 2,926 2,021 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,898 2,021 Comprehensive income attributable to non- controlling interests 27 (0)
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VALQUA, LTD. (7995) Consolidated Financial Results for the Six Months Ended September 30, 2025 -8- (3) Consolidated Statements of Cash Flows (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Cash flows from operating activities Profit before income taxes 3,140 3,005 Depreciation 1,377 1,374 Interest and dividend income (50) (52) Interest expenses 110 136 Decrease (increase) in retirement benefit assets (163) (152) Increase (decrease) in retirement benefit liabilities 4 (13) Loss on abandonment of non-current assets 33 6 Asbestos illness compensation money 42 － Business restructuring expenses 110 107 Loss (gain) on sale of non-current assets (2) (37) Gain on sale of investments in capital of subsidiaries and associates (179) － Decrease (increase) in trade receivables 1,159 1,604 Decrease (increase) in inventories (1,103) (1,627) Increase (decrease) in trade payables (773) (546) Other 634 889 Subtotal 4,340 4,696 Interest and dividends received 52 52 Interest paid (110) (121) Income taxes refund 196 46 Income taxes paid (1,020) (1,232) Extra retirement payments (100) (100) Amount collected on the right to reimbursement － 5 Cash flows from operating activities 3,357 3,346 Cash flows from investing activities Purchase of property, plant and equipment (2,652) (1,953) Proceeds from sale of property, plant and equipment 2 69 Purchase of intangible assets (301) (187) Purchase of investment securities (21) － Payments for guarantee deposits (5) (6) Proceeds from refund of guarantee deposits 9 3 Purchase of shares of subsidiaries and associates resulting in change in scope of consolidation － -1,735 Proceeds from sale of investments in capital of subsidiaries and associates 1,302 － Other (84) (25) Cash flows from investing activities (1,750) (3,834) Cash flows from financing activities Proceeds from short-term borrowings 3,170 5,832 Repayments of short-term borrowings (4,249) (7,349) Proceeds from long-term borrowings 1,360 3,689 Repayments of long-term borrowings (382) (879) Repayments of lease liabilities (88) (105) Purchase of treasury shares (3) (1) Proceeds from sale of treasury shares － 0 Dividends paid (1,314) (1,317) Dividends paid to non-controlling interests (12) － Cash flows from financing activities (1,519) (129) Effect of exchange rate change on cash and cash equivalents 135 (181) Net increase (decrease) in cash and cash equivalents 223 (799) Cash and cash equivalents at beginning of period 6,386 7,969 Cash and cash equivalents at end of period 6,609 7,169
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VALQUA, LTD. (7995) Consolidated Financial Results for the Six Months Ended September 30, 2025 -9- (4) Notes to Consolidated Financial Statements (Notes on Segment Information, Etc.) [Segment Information] I. Six months ended September 30, 2024 Information on the amount of net sales and profit or loss for each reportable segment (Millions of yen) Reportable segment Total Adjustments Amount recorded in the consolidated statement of income (Note) Seal Products Business High Performance Plastics Products Business Silicon Wafer Reclaim and Other Businesses Net sales Sales to external customers 19,965 8,680 1,451 30,097 － 30,097 Inter-segment sales or transfers － － － － － － Total 19,965 8,680 1,451 30,097 － 30,097 Segment profit 2,369 412 143 2,924 － 2,924 (Note) The total amount of segment prof it is the same as operating profit in the consolidated statement of income. II. Six months ended September 30, 2025 1. Information on the amount of net sales a nd profit or loss for each reportable segment (Millions of yen) Reportable segment Total Adjustments Amount recorded in the consolidated statement of income (Note) Seal Products Business High Performance Plastics Products Business Net sales Sales to external customers 20,261 6,819 27,081 － 27,081 Inter-segment sales or transfers － － － － － Total 20,261 6,819 27,081 － 27,081 Segment profit 3,147 36 3,183 － 3,183 (Note) The total amount of segment prof it is the same as operating profit in the consolidated statement of income. Matters regarding changes in reportable segments (Reclassification of reportable segments) From the period under review, the Group’s reportable se gments have been reorganized into two segments: the Seal Products Business and the High Performance Plasti cs Products Business. In the past, the Group had three reportable segments: the Seal Products Business, the High Performance Plastics Products Business, and the Silicon Wafer Reclaim and Other Businesses. At a meeting of the Board of Directors held on February 26, 2025, the Company resolved to transfer all of its shares held in VALQUA FFT Inc., a major constituent company in the Silicon Wafer Reclaim and Other Businesses, and the transfer was made on March 21, 2025. As a result of reconsidering reportable segments based on the Group’s business management structure after this share transfer, we decided it would be appropriate to consolidate them into two segments: the Seal Products Business and the High Performance Plastics Products Business. Segment information for the six months ended September 30, 2024 has been prepared based on the classification after the change and by excluding the net sales and operating profit of VALQUA FFT Inc., which were included in the Silicon Wafer Reclaim and Other Businesses segment. 2. Information on Assets fo r Each Reportable Segment At the end of the period under review, the Company acquired all shares of TORQUE SYSTEM Co., Ltd., and included TORQUE SYSTEM Co., Ltd. in the scope of consolidation. As a result, asse ts for the reportable segment in the period under review increased by ¥3,377 million in the Seal Products Business, compared to the end of the previous fiscal year. 3. Information on Impairment Loss of Non-Current Asse ts or Goodwill, Etc. for Each Reportable Segment (Material Impairment Loss on Non-Current Assets) Not applicable.
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VALQUA, LTD. (7995) Consolidated Financial Results for the Six Months Ended September 30, 2025 -10- (Material Changes in the Amount of Goodwill) At the end of the period under review, the Company acquired all shares of TORQUE SYSTEM Co., Ltd., and included TORQUE SYSTEM Co., Ltd. in the scope of consolidation. As a result, good will increased by ¥1,749 million at the end of the period under review compared with the end of the previous fiscal year. (Notes When There Are Significant Changes in Amounts of Equity) Not applicable. (Notes on Going Concern) Not applicable. (Notes on Consolidated Statements of Cash Flows) * Relationship between the amount of cash and cash equivalents during the period under review and the balance of cash and deposits on the consolidated balance sheet at the end of the period under review is as follows. Six months ended September 30, 2024 Six months ended September 30, 2025 Cash and deposits ¥6,609 million ¥7,169 million Time deposits with maturities exceeding three months - - Cash and cash equivalents 6,609 7,169 (Subsequent Events) Not applicable.
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VALQUA, LTD. (7995) Consolidated Financial Results for the Six Months Ended September 30, 2025 -11- 3. Supplementary Information (1) Orders Received (Millions of yen) Segment name Orders received Order backlog Six months ended September 30, 2024 Six months ended September 30, 2025 Year-on- year change (%) As of September 30, 2024 As of September 30, 2025 Year-on- year change (%) Seal Products Business 20,147 19,459 (3.4) 6,076 6,297 3.6 High Performance Plastics Products Business 7,670 7,402 (3.5) 3,620 4,762 31.6 Silicon Wafer Reclaim and Other Businesses 1,334 － － 148 － － Total 29,151 26,861 (7.9) 9,844 11,059 12.3 (Note) 1 Since the three months ended June 30, 2025, the Group’s reportable segments have been reorganized into two segments: the Seal Products Business and the High Performance Plastics Products Business. In the past, the Group had three report able segments: the Seal Products Business, the High Performance Plastics Products Business, and the Silicon Wafer Reclaim and Other Businesses. Segment information for the three months ende d June 30, 2024, has been prepared based on the classification after the change and by excluding the orders received and order backlog of VALQUA FFT Inc., which were included in the Silicon Wafer Reclaim and Other Businesses segment. 2 TORQUE SYSTEM Co., Ltd. which is included in the scope of consolidation during the current interim consolidated accounting period, is in cluded in the order backlog at the end of the interim consolidated accounting period, but not in the orders received during the interim consolidated accounting period. (2) Overseas Net Sales Six months ended September 30, 2024 Asia United States The Others Total I. Overseas net sales (millions of yen) 7,207 2,237 73 9,518 II. Consolidated net sales (millions of yen) 30,097 III. Percentage of overseas net sales to consolidated net sales (%) 24.0 7.4 0.2 31.6 (Note) 1 Country or region classification is based on geographical proximity. 2 The breakdown of the main countri es or regions belonging to each classification other than Japan is as follows: (1) Asia ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ China, Taiwan, Thailand, Singapore, South Korea and Vietnam (2) The Other ꞏꞏꞏꞏꞏꞏꞏ Europe 3 Overseas net sales are sales by the Company and it s consolidated subsidiaries in countries or regions other than Japan. Six months ended September 30, 2025 Asia United States The Others Total I. Overseas net sales (millions of yen) 7,248 1,298 106 8,652 II. Consolidated net sales (millions of yen) 27,081 III. Percentage of overseas net sales to consolidated net sales (%) 26.8 4.8 0.4 40.0 (Note) 1 Country or region classification is based on geographical proximity. 2 The breakdown of the main countri es or regions belonging to each classification other than Japan is as follows: (1) Asia ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ China, Taiwan, Thailand, Singapore, South Korea and Vietnam (2) The Others ꞏꞏꞏꞏꞏ Europe 3 Overseas net sales are sales by the Company and it s consolidated subsidiaries in countries or regions other than Japan.