Interim report
Page 1
Translation Notice : This document is a translation of the original Japanese document and is only for reference purposes . In the event of any discrepancy between this translated document and the original Japanese document , the latter shall prevail . Company name : Standards F Financial Acc Accounting FASF MEMBERSHIP Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Based on Japanese GAAP ) August 5 , 2026 Inabata & Co. , Ltd. Stock exchange listing : Tokyo Stock code : 8098 URL https://www.inabata.co.jp/english/ Representative : Director , President Katsutaro Inabata Executive Officer , Inquiries : General Manager , Financial Management Office Koichi Noda Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results meeting : Yes No TEL 050-3684-4011 ( Amounts less than one million yen are rounded down ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) Percentages indicate year - on - year changes Net sales Operating profit Three months ended June 30 , 2026 Three months ended June 30 , 2025 Note : Comprehensive income For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : Millions of yen 243,655 204,109 % 19.4 ( 4.4 ) Millions of yen 9,835 6,608 % 48.8 ( 3.2 ) Ordinary profit Millions of yen 10,167 7,369 % 38.0 1.6 Profit attributable to owners of parent Millions of yen % 6,376 5.6 6,039 ( 5.2 ) ¥ 9,797 million ¥ 4,716 million [ 107.7 % ] [ ( 69.4 ) % ] Diluted earnings per Earnings per share share Yen Yen Three months ended June 30 , 2026 Three months ended June 30 , 2025 119.46 111.57 Note : The Company has finalized the provisional accounting treatment related to the business combination during the second quarter of the fiscal year ended March 31 , 2026. Consequently , the figures for the three months ended June 30 , 2025 have been adjusted to reflect the finalization of the provisional accounting treatment . ( 2 ) Consolidated financial position As of June 30 , 2026 As of March 31 , 2026 Reference : Equity Total assets Millions of yen Net assets Millions of yen Equity ratio % 527,967 498,138 252,120 45.7 245,938 47.3 As of June 30 , 2026 : ¥ 241,446 million As of March 31 , 2026 : ¥ 235,779 million
Page 2
2. Cash dividends Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 – 63.00 – 65.00 128.00 Fiscal year ending March 31, 2027 – Fiscal year ending March 31, 2027 (Forecast) 70.00 – 73.00 143.00 Note: Revisions to the forecast of cash dividends most recently announced: None 3. Forecast of consolidated financial results for the 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 Earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Six months ending September 30, 2026 440,000 6.6 13,000 (7.5) 13,000 (12.2) 10,000 (16.3) 187.33 Full year 890,000 6.9 27,500 5.1 27,500 (0.9) 21,000 1.8 393.39 Note: Revisions to the forecast of consolidated financial results most recently announced: None 4. Notes (1) Significant changes in the scope of consolidation during the period: No (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements No (3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: No Changes in accounting policies due to other reasons: No Changes in accounting estimates: No Restatement of prior period financial statements: No (4) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 53,714,127 shares As of March 31, 2026 53,714,127 shares Number of treasury shares at the end of the period As of June 30, 2026 332,685 shares As of March 31, 2026 332,214 shares Average number of shares during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 53,381,685 shares Three months ended June 30, 2025 54,130,348 shares Note: The Company has introduced the “Board Benefit Trust (BBT),” and shares of the Company held by this trust are included in the number of treasury shares to be deducted in the calculation of “Number of treasury shares at the end of the period” and “Average number of shares during the period.” * Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: No * Proper use of forecasts of financial results, and other special matters The above forecasts are based on information available to the Company as of the date of the announcement of this document and are not intended to be a commitment by the Company to achieve them. In addition, actual results may differ from the forecasts due to various factors in the future. For matters concerning forecasts of financial results, please refer to “(3) Explanation of forecasts of consolidated financial results and other forward-looking statements” of “1. Overview of operating results and others” on page 6 of the attached material.
Page 3
Inabata & Co., Ltd. (8098) 1 Attached Material Index 1. Overview of operating results and others ................................................................................................. 2 (1) Overview of operating results for the period under review ................................................................ 2 (2) Overview of financial position for the period under review ............................................................... 6 (3) Explanation of forecasts of consolidated financial results and other forward-looking statements ..... 6 2. Consolidated financial statements and significant notes thereto ............................................................... 7 (1) Consolidated balance sheet ................................................................................................................ 7 (2) Consolidated statement of income and consolidated statement of comprehensive income ............... 9 Consolidated statement of income ...................................................................................................... 9 Consolidated statement of comprehensive income .......................................................................... 10 (3) Notes to quarterly consolidated financial statements ....................................................................... 11 Notes to segment information, etc. ................................................................................................... 11 Notes in the case where there was a significant change in the amount of shareholders’ equity ....... 13 Notes on premise of going concern .................................................................................................. 13 Notes to quarterly consolidated statement of cash flows .................................................................. 13
Page 4
Inabata & Co., Ltd. (8098) 2 1. Overview of operating results and others (1) Overview of operating results for the period under review During the three months ended June 30, 2026, the global economy was generally on a moderate recovery trend, although weaknesses were observed in some regions. However, uncertainty about the future continues, particularly with regard to the situation in the Middle East. In the U.S., the economy expanded moderately, mainly in capital expenditure and rising consumer spending. In China, the economy slowed down moderately due to the impact of the stagnation in the real estate market and other factors. In emerging countries of Asia, the Indian economy expanded and the Indonesian economy picked up moderately. Additionally, there were trends of recovery in Thailand. In Europe, there were signs of economic recovery in the Euro area, primarily driven by consumer spending. However, there was a standstill in recovery in Germany. On the other hand, the economy is on a recovery trend In the U.K. The Japanese economy recovered gradually. Consumer spending and capital expenditure picked up, and signs of improvement were also observed in exports, employment conditions, and corporate earnings. Under this situation, the Group’s consolidated net sales were ¥243,655 million (up 19.4% year-on- year). As for profits, operating profit was ¥9,835 million (up 48.8% year-on-year), ordinary profit was ¥10,167 million (up 38.0% year-on-year), and profit attributable to owners of parent was ¥6,376 million (up 5.6% year-on-year). Regarding the impact from the escalating situation in the Middle East, selling prices rose and sales volume increased primarily for the Plastics Business, which handles resins in general, and the Chemicals Business, which handles chemical raw materials, resulting in a positive business performance for the Company. However, it appears there were efforts by some customers to secure inventories, and the Company believes there are concerns about a potential reactionary effect from the second quarter onwards. The average exchange rate against US dollar during the three months ended June 30, 2026 was ¥159.57 (¥144.59 during the three months ended June 30, 2025). Additionally, during the second quarter of the fiscal year ended March 31, 2026, the provisional accounting treatment related to the business combination was finalized. For comparison and analysis with the three months ended June 30, 2025, the revised figures reflecting the finalization of the provisional accounting treatment are used. (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Year-on-year (%) Net sales 204,109 243,655 19.4% increase Operating profit 6,608 9,835 48.8% increase Ordinary profit 7,369 10,167 38.0% increase Profit attributable to owners of parent 6,039 6,376 5.6% increase Operating results by segment are as follows. Information & Electronics Business Sales in the Information & Electronics Business increased due to factors such as sales related to flat panel displays (hereinafter, “FPDs”) remained steady, semiconductor-related material sales increased significantly, and solar power generation-related material sales began to rise. In sales related to FPDs, the operations of panel manufacturers remained steady, and the Company’s sales for small- to medium-sized panels, in-vehicle electronics, and OLED were firm.
Page 5
Inabata & Co., Ltd. (8098) 3 Sales of encapsulants for LEDs decreased due to some sales being brought forward in the previous fiscal year, despite no significant change in market conditions. For inkjet-related products, sales were generally firm, despite the impact of production issues faced by some customers for home and office use. For industrial materials, a main focus of the Company, the market continued to grow, and the Company’s sales also increased. For copier-related products, the acquisition of new products led to a rise in the sales of related materials. Sales of solar power generation-related materials increased due in part to major customers beginning to ramp up production. The Company is continuing to accelerate initiatives targeting Europe, North America, and India, where the impact of global price competition is relatively less severe. For products related to lithium-ion batteries, sales of some related materials remained flat amid a continued global slowdown in EV sales. The Company is strengthening its initiatives for stationary storage batteries, driven by the growing demand for data centers, primarily in North America. The Company is also making new efforts to expand sales of high-performance materials for next-generation negative-electrode materials. For photomask-related products, sales for related materials increased for both FPDs and semiconductors. Sales for semiconductor-related materials significantly increased partly due to a substantial increase in sales of materials for advanced semiconductor applications, driven by the booming AI-related market, as well as the start of sales for new materials. As a result, net sales amounted to ¥65,923 million (up 9.5% year-on-year). Segment profit (operating profit) was ¥2,180 million (up 11.5% year-on-year). (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Year-on-year (%) Net sales 60,206 65,923 9.5% increase Segment profit (operating profit) 1,955 2,180 11.5% increase Chemicals Business In the Chemicals Business, overall, sales significantly increased across various sectors as both sales volume and prices rose, partly due to rising raw materials prices associated with the escalating situation in the Middle East and increasing demand for alternative raw materials. For resin materials/additives, sales of urethane materials, including new businesses, increased significantly. The demand for materials for automotive parts generally remained flat, but the introduction of new products led to the growth in thermal interface materials, resulting in a substantial increase in sales. For the coatings/ink/adhesive area, both sales volume and prices have increased due to heightened demand associated with the escalating situation in the Middle East. For papermaking agents, sales increased mainly due to rising material prices. For products related to building materials, sales increased mainly due to expanded sales to house- builders despite the decline in new housing starts. As a result, net sales amounted to ¥36,417 million (up 21.4% year-on-year). Segment profit (operating profit) was ¥1,368 million (up 76.1% year-on-year).
Page 6
Inabata & Co., Ltd. (8098) 4 (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Year-on-year (%) Net sales 30,009 36,417 21.4% increase Segment profit (operating profit) 776 1,368 76.1% increase Life Industry Business In the Life Industry Business, sales increased due to strong performance overall in both life science- related products and food-related products. For life science-related products, sales of raw materials for pharmaceuticals and daily necessities were robust, leading to an overall increase in sales. Sales of pharmaceuticals increased due to a rise in raw materials sales both domestically and overseas, as well as the launch of regenerative medication-related products. For food-related products, sales of agricultural products increased due to the growth in export sales of “Matcha” products. For fishery products, sales were strong for conveyor-belt sushi restaurants and mass retailers in Japan, and the e-commerce sales of eel processed products and other businesses also experienced strong performance. Sales in the U.S. market remained flat compared to the previous year as demand for restaurants has yet to recover. As a result, net sales amounted to ¥16,744 million (up 16.0% year-on-year). Segment profit (operating profit) was ¥825 million (up 49.1% year-on-year). (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Year-on-year (%) Net sales 14,441 16,744 16.0% increase Segment profit (operating profit) 553 825 49.1% increase Plastics Business In the Plastics Business, overall, sales significantly increased across various sectors as both sales volume and prices rose due to rising raw materials prices associated with the escalating situation in the Middle East and efforts by some customers to secure inventories. For products related to commodity resins, despite generally weak demand in various sectors, such as daily necessities and construction, sales increased mainly due to an increase in sales prices. For products related to high-performance resins, products for OA performed steadily on a global scale, despite the impact of production issues faced by some customers. In addition, sales of new businesses including carbon fiber increased steadily. For automotive-related products, global sales increased. By region, sales remained flat in Southeast Asia, China, and Mexico, increased domestically, and significantly increased in India. In China, sales to Japanese-affiliated automakers were weak, but sales to local manufacturers expanded. In Mexico, demand from Japanese-affiliated automakers did not recover, remaining flat compared to the previous year. In addition, sales prices increased in each region. For the compound business, both sales volume and sales increased. For polyolefin resins, both domestic and export sales increased due to the rise in sales prices. Exports, particularly for mainstay electric wire coatings in Asia, remained strong. For film-related products (soft packaging area), both sales prices and sales volume increased, leading to an increase in sales. For sports-related products, sales increased mainly due to favorable sales of grip tapes to major customers.
Page 7
Inabata & Co., Ltd. (8098) 5 For sheet-related products, sales increased due to the acquisition of new customers as well as an increase in sales prices. The recycling material business is expanding steadily. As a result, net sales amounted to ¥124,523 million (up 25.3% year-on-year). Segment profit (operating profit) was ¥5,427 million (up 65.1% year-on-year). (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Year-on-year (%) Net sales 99,406 124,523 25.3% increase Segment profit (operating profit) 3,287 5,427 65.1% increase
Page 8
Inabata & Co., Ltd. (8098) 6 (2) Overview of financial position for the period under review Assets Total assets as of June 30, 2026 increased by ¥29,828 million compared with March 31, 2026 (up 6.0% from the end of the previous fiscal year) to ¥527,967 million. The increase in current assets by ¥28,075 million was mainly due to increases in accounts receivable - trade and in merchandise and finished goods. The increase in non-current assets by ¥1,753 million was mainly due to increases in investment securities and in intangible assets. Liabilities Total liabilities as of June 30, 2026 increased by ¥23,646 million compared with March 31, 2026 (up 9.4% from the end of the previous fiscal year) to ¥275,846 million. The increase in current liabilities by ¥23,319 million was mainly due to increases in notes and accounts payable - trades and in short-term borrowings. The increase in non-current liabilities by ¥326 million was mainly due to an increase in other. Net assets Total net assets as of June 30, 2026 increased by ¥6,182 million compared with March 31, 2026 (up 2.5% from the end of the previous fiscal year) to ¥252,120 million. This was mainly attributable to increases in retained earnings, in foreign currency translation adjustment and in non-controlling interests. As a result, the equity ratio was 45.7% (down 1.6 points from March 31, 2026). (3) Explanation of forecasts of consolidated financial results and other forward-looking statements There are no changes to the consolidated earnings forecasts for the six months ending September 30, 2026 and the full year ending March 31, 2027, which were announced in the Consolidated Financial Results on May 11, 2026
Page 9
Inabata & Co., Ltd. (8098) 7 2. Consolidated financial statements and significant notes thereto (1) Consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 76,836 67,902 Notes receivable - trade 25,553 29,355 Accounts receivable - trade 179,470 199,315 Merchandise and finished goods 89,104 100,962 Work in process 1,941 1,760 Raw materials and supplies 5,479 7,495 Other 16,305 15,967 Allowance for doubtful accounts (618) (612) Total current assets 394,072 422,147 Non-current assets Property, plant and equipment 28,422 28,724 Intangible assets 13,723 14,083 Investments and other assets Investment securities 42,620 43,956 Retirement benefit asset 12,752 12,833 Other 12,653 12,419 Allowance for doubtful accounts (6,105) (6,196) Total investments and other assets 61,920 63,012 Total non-current assets 104,066 105,820 Total assets 498,138 527,967
Page 10
Inabata & Co., Ltd. (8098) 8 (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 124,967 138,614 Short-term borrowings 37,102 47,464 Income taxes payable 4,159 3,294 Provision for bonuses 2,105 1,562 Other 16,152 16,870 Total current liabilities 184,487 207,806 Non-current liabilities Bonds payable 25,000 25,000 Long-term borrowings 27,741 27,717 Provision for retirement benefits for directors (and other officers) 36 18 Provision for share awards for directors (and other officers) 287 293 Retirement benefit liability 2,395 2,440 Other 12,251 12,569 Total non-current liabilities 67,713 68,039 Total liabilities 252,200 275,846 Net assets Shareholders’ equity Share capital 9,364 9,364 Capital surplus 7,260 7,260 Retained earnings 164,582 167,473 Treasury shares (783) (783) Total shareholders’ equity 180,424 183,315 Accumulated other comprehensive income Valuation difference on available-for-sale securities 12,612 12,994 Deferred gains or losses on hedges 346 308 Foreign currency translation adjustment 40,460 42,954 Remeasurements of defined benefit plans 1,935 1,873 Total accumulated other comprehensive income 55,354 58,130 Non-controlling interests 10,159 10,674 Total net assets 245,938 252,120 Total liabilities and net assets 498,138 527,967
Page 11
Inabata & Co., Ltd. (8098) 9 (2) Consolidated statement of income and consolidated statement of comprehensive income Consolidated statement of income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 204,109 243,655 Cost of sales 183,850 218,604 Gross profit 20,258 25,051 Selling, general and administrative expenses 13,650 15,215 Operating profit 6,608 9,835 Non-operating income Interest income 228 263 Dividend income 618 343 Share of profit of entities accounted for using equity method 126 90 Miscellaneous income 257 253 Total non-operating income 1,230 950 Non-operating expenses Interest expenses 355 422 Foreign exchange losses 10 87 Miscellaneous losses 103 108 Total non-operating expenses 469 618 Ordinary profit 7,369 10,167 Extraordinary income Gain on sale of investment securities 1,141 – Total extraordinary income 1,141 – Extraordinary losses Loss on valuation of investment securities – 427 Total extraordinary losses – 427 Profit before income taxes 8,511 9,740 Income taxes - current 2,452 2,658 Income taxes - deferred (206) 243 Total income taxes 2,245 2,902 Profit 6,265 6,837 Profit attributable to non-controlling interests 226 461 Profit attributable to owners of parent 6,039 6,376
Page 12
Inabata & Co., Ltd. (8098) 10 Consolidated statement of comprehensive income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 6,265 6,837 Other comprehensive income Valuation difference on available-for-sale securities 755 537 Deferred gains or losses on hedges (75) (38) Foreign currency translation adjustment (2,187) 2,551 Remeasurements of defined benefit plans, net of tax 22 (63) Share of other comprehensive income of entities accounted for using equity method (64) (27) Total other comprehensive income (1,548) 2,959 Comprehensive income 4,716 9,797 Comprehensive income attributable to Comprehensive income attributable to owners of parent 4,415 9,152 Comprehensive income attributable to non-controlling interests 301 644
Page 13
Inabata & Co., Ltd. (8098) 11 (3) Notes to quarterly consolidated financial statements Notes to segment information, etc. [Segment information] I Three months ended June 30, 2025 1. Information on the amounts of net sales and profit or loss by reportable segment (Millions of yen) Reportable segments Information & Electronics Chemicals Life Industry Plastics Total Net sales (1) Sales to external customers 60,206 30,009 14,441 99,406 204,064 (2) Intersegment sales or transfers – – – – – Total 60,206 30,009 14,441 99,406 204,064 Segment profit 1,955 776 553 3,287 6,574 Others (Note) 1 Total Adjustments Amount recorded in the quarterly consolidated statement of income (Note) 2 Net sales (1) Sales to external customers 45 204,109 – 204,109 (2) Intersegment sales or transfers – – – – Total 45 204,109 – 204,109 Segment profit 34 6,608 – 6,608 Notes: 1. “Others” category represents a business segment that is not included in reportable segments, and real estate leasing business. 2. The total amount of segment profit corresponds to operating profit in the quarterly consolidated statement of income. 3. The Company has finalized the provisional accounting treatment related to the business combination during the second quarter of the fiscal year ended March 31, 2026. Consequently, the segment information for the three months ended June 30, 2025 has been adjusted to reflect the finalization of the provisional accounting treatment.
Page 14
Inabata & Co., Ltd. (8098) 12 II Three months ended June 30, 2026 1. Information on the amounts of net sales and profit or loss by reportable segment (Millions of yen) Reportable segments Information & Electronics Chemicals Life Industry Plastics Total Net sales (1) Sales to external customers 65,923 36,417 16,744 124,523 243,609 (2) Intersegment sales or transfers – – – – – Total 65,923 36,417 16,744 124,523 243,609 Segment profit 2,180 1,368 825 5,427 9,801 Others (Note) 1 Total Adjustments Amount recorded in the quarterly consolidated statement of income (Note) 2 Net sales (1) Sales to external customers 45 243,655 – 243,655 (2) Intersegment sales or transfers – – – – Total 45 243,655 – 243,655 Segment profit 33 9,835 – 9,835 Notes: 1. “Others” category represents a business segment that is not included in reportable segments, and real estate leasing business. 2. The total amount of segment profit corresponds to operating profit in the quarterly consolidated statement of income.
Page 15
Inabata & Co., Ltd. (8098) 13 Notes in the case where there was a significant change in the amount of shareholders’ equity Not applicable. Notes on premise of going concern Not applicable. Notes to quarterly consolidated statement of cash flows A quarterly consolidated statement of cash flows for the three months ended June 30, 2026 is not prepared. Depreciation (including amortization related to intangible assets excluding goodwill) and amortization of goodwill for the three months ended June 30, 2025 and 2026 are as follows. The Company has finalized the provisional accounting treatment related to the business combination during the second quarter of the fiscal year ended March 31, 2026. Consequently, the figures for the three months ended June 30, 2025 have been adjusted to reflect the finalization of the provisional accounting treatment. (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation 1,098 1,153 Amortization of goodwill 81 83