Interim report
Page 1
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation ( 8113 ) Consolidated Financial Results for the Six Months Ended June 30 , 2026 This notice has been translated from the original Japanese text of the timely disclosure statement dated August 5 , 2026 and is for reference purposes only . In the event of any discrepancy between the original Japanese and this translation , the Japanese text shall prevail . CAUTIONS REGARDING FORWARD - LOOKING STATEMENTS This document contains forward - looking statements , such as Unicharm Corporation's current plans , strategies , and future performance . These forward - looking statements are based on judgments obtained from currently available information . Please be advised that , for a variety of reasons , actual results may differ materially from those discussed in the forward - looking statements . Events that might affect actual results include , but are not limited to , economic circumstances in which Unicharm Corporation operates , competitive pressures , relevant regulations , changes in product development , and fluctuations in currency exchange rates . Listed Company Name : Listing : Code Number : URL : Consolidated Financial Results for the Six Months Ended June 30 , 2026 ; Flash Report [ IFRS ] Unicharm Corporation Tokyo Stock Exchange 8113 Accounting Standards FASF MEMBERSHIP August 5 , 2026 Company Representative : Contact Person : Telephone Number : https://www.unicharm.co.jp/ Takahisa Takahara , Representative Director , President and Chief Executive Officer Hirotatsu Shimada , Senior Managing Executive Officer , General Manager of Accounting Control and Finance Division + 81-3-3451-5111 Scheduled Date to Submit Semi - Annual Securities Report : August 6 , 2026 Scheduled Date to Commence Dividend Payments : September 2 , 2026 Preparation of Supplementary Material on Financial Results : Yes Holding of Financial Results Presentation Meeting : Yes ( For Securities Analysts and Institutional Investors ) ( Amounts are rounded to the nearest million yen ) 1. Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( January 1 , 2026 through June 30 , 2026 ) ( 1 ) Consolidated financial results ( cumulative total ) Total Comprehensive ( Figures in percentage represent increases or decreases from the same period last year ) Profit Attributable to Owners of Parent Millions of Yen % Net Sales Core Operating Income Profit Before Tax Profit for the Period Income Millions of % Yen Millions of Yen Millions of Yen % Millions of Yen % % Millions of Yen % Six Months Ended June 30 , 2026 487,133 4.9 65,032 14.1 66,608 6.6 48,829 4.6 41,031 ( 1.9 ) 61,541 334.3 Six Months Ended June 30 , 2025 464,170 ( 4.8 ) 57,014 ( 22.0 ) | 62,496 ( 14.8 ) 46,697 ( 0.9 ) 41,813 5.5 14,170 ( 85.7 ) Basic Earnings Per Share Diluted Earnings Per Share Yen Yen 23.75 Six Months Ended Six Months Ended June 30 , 2026 June 30 , 2025 ( Note ) 23.84 Core operating income information is a valuable benchmark for measuring the Group's recurring business performance . It is calculated by deducting selling , general and administrative expenses from gross profit .
Page 2
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financial Results for the Six Months Ended June 30, 2026 (2) Consolidated financial position Total Assets Total Equity Equity Attributable to Owners of Parent Ratio of Equity Attributable to Owners of Parent Millions of Yen Millions of Yen Millions of Yen % As of June 30, 2026 1,231,452 906,982 811,594 65.9 As of December 31, 2025 1,223,176 891,259 794,705 65.0 2. Cash Dividends Annual Dividends 1st Q-End 2nd Q-En d 3rd Q-En d Yea r-End Total Yen Yen Yen Yen Yen Fiscal Year Ended December 31, 2025 – 9.00 – 9.00 18.00 Fiscal Year Ending December 31, 2026 – 11.00 Fiscal Year Ending December 31, 2026 (forecast) – 11.00 22.00 (Note) Changes in dividend forecasts recently disclosed: None 3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2026 (January 1, 2026 through December 31, 2026) (Figures in percentage represent increases or decreases from the previous fiscal year) Net Sales Core Operating Income Profit Before Tax Profit Attributable to Owners of Parent Basic Earnings Per Share Millions of Yen % Millions of Yen % M illions of Yen % Millions of Yen % Yen Full Year 1,015,000 7.4 113,000 3.8 1 13,500 7.7 70,000 7.3 40.68 (Note) Changes in results forecasts recently disclosed: Yes
Page 3
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financial Results for the Six Months Ended June 30, 2026 * Notes (1) Significant changes in the scope of consolidation during the period: Yes Newly included: 1 company [Company name] Nutrire Industria de Alimentos Ltda. (2) Changes in accounting poli cies and accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Changes in accounting policies other than item (i) above: None (iii) Changes in accounting estimates: None (3) Number of issued and outsta nding shares (common shares) (i) Number of issued and outstanding shares as of end of period (including treasury shares): As of June 30, 2026: 1,862,502,957 shares As of December 31, 2025: 1,862,502,957 shares (ii) Number of treasury sh ares as of end of period: As of June 30, 2026: 141,702,640 shares As of December 31, 2025: 122,577,638 shares (iii) Average number of shares duri ng the period (accumulated total): Six Months Ended June 30, 2026: 1,727,803,719 shares Six Months Ended June 30, 2025: 1,753,731,834 shares * Semi-annual financial results report is exempt from review by certified public accountants or an auditing firm. * Explanation regarding proper use of the forecasts of financial results and other notes Forecasts stated herein are based on the currently available information and the Company’s assumptions that were judged to be valid as of the announcement date hereof, and are not intended to be a promise by the Company to achieve these forecasts. Therefore, actual results may differ for various factors. Please refer to “1. Overview of the Operating Results, Etc., (3) Explanation of future estimate information such as forecast of consolidated financial results” section on page 6 for more information concerning the assumptions used for forecasts of financial results and other notes on proper use.
Page 4
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -1- Contents of Exhibit 1. Overview of the Operating Results, Etc. ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2 (1) Overview of the operating results for the fiscal period under review ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2 (2) Overview of the financial position for the fiscal period under review ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5 (3) Explanation of future estimate information such as forecast of consolidated financial results ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 6 2. Condensed Consolidated Financial Statements and Significant Notes Thereto ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 7 (1) Condensed consolidated statement of financial position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 7 (2) Condensed consolidated statement of income and Condensed consolidated statement of comprehensive income ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 9 (3) Condensed consolidated statement of changes in equity ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 11 (4) Condensed consolidated statement of cash flows ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 12 (5) Notes to the condensed consolidated financial statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 14 1. Notes regarding going concern assumptions ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 14 2. Material accounting policies ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 14 3. Segment information ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 14 4. Selling, general and administrative expenses ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 16 5. Other incomeꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 16 6. Business combinations ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 16
Page 5
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -2- 1. Overview of the Operating Results, Etc. (1) Overview of the operating results for the fiscal period under review During the six months ende d June 30, 2026 (from January 1, 2026, to June 30, 2026), wh ich commenced the first year of the 13th Mid-term Management Plan, the Company focused its efforts on strengthening its management foundation and implementing key strategies aimed at sustainable growth. Meanwhile, uncertainty continues to cloud the operating environment surrounding the Group due to exchange rate fluctuations driven by monetary policy trends in the United States, along with global inflation concerns and ongoing fears of soaring energy prices, such as crude oil, resulting from the prolonged Middle East crisis. Furthermore, the future outlook remains unclear as concerns grow over the slowdown in the growth of Asian economies and the depreciation of currencies in each country, compounded by rising costs for raw materials and logistics disruptions. In this environment and under the banner of its corporate brand essence, “Love Your Possibilities - You can do anything. Anytime, forever. -,” the Group has promoted initiatives aimed at the development of a “Cohesive Society” in which people support one another with a compassionate and altruistic spirit, believing in the unlimited untapped potential contained within everybody. In Asia, due to a deterioration in economic sentiment, increasing consumer cost-consciousness has led to continued polarization among certain baby care products. In China, the Group has steadily promoted strategic upfront investments in growth areas such as wellness care, pet care, and emerging e-commerce platforms, with an eye on future growth. Although the effect of these upfront investments has not yet manifested in performance improvement during the six months ended June 30, 2026, initiatives are steadily advanced to ensure a solid recovery in performance in the second half of the year. In Japan, the Company’s market share has remained steady, despite a challenging consumer environment due to increasing consumer cost-consciousness amid inflation. This is because the products the Company handles are daily necessities, and the wide-ranging lineup of these products has appropriately captured the diverse needs of consumers. As a result, net sales, core operating income, profit befo re tax, profit for the period, and profit attributable to owners of parent in the six months ended June 30, 2026 reached ¥487,133 million (up 4.9% year on year), ¥65,032 million (up 14.1% year on year), ¥66,608 million (up 6.6% year on year), ¥48,829 million (up 4.6% year on year), and ¥41,031 million (down 1.9% year on year), respectively. Financial results by segment are as described below. 1) Personal Care Business ● Wellness Care Business Looking at overseas markets, in Thailand, Indonesia, and Vietnam, where latent demand for adult incontinence care products is rising, the Company continued to expand its ADL *1-based product lineup and propose original products tailored to local needs. In Thailand, we launched the U Pants by Lifree economy underwear through e-comm erce platforms and some convenience stores, actively promoting the development of new channels. In Indonesia, we updated the thin and comfortable Lifree Pants TIPIS & NYAMAN and the extra absorbent Lifree Pants Ekstra Serap to align with consumer habits of using a single pair for extended periods. Furthermore, in China, where the population is aging at a remarkably rapid pace compared to Japan, there is an extremely large target market. However, awareness of high-quality and high value-added specialized products remains low, and many people make do with alternatives such as sanitary products and bed sheets. In response to the challenge of “lack of appreciation for specialized products,” the lineup of light incontinence products was expanded at first to make it easier for customers to appreciate the unique value of these specialized products. The Company has also leveraged social media to proactively promote the comfort and convenience of its products, while conducting ongoing marketing investments to raise awareness of the entire category and drive business growth. In Japan, the Company continued to develop high value-added products that cater to the growing emphasis on health and peace of mind. We maintain the No. 1 market share by offering a diverse product lineup tailored to the climate, ADL, and consumer needs, which includes the launch of the summer-only product, Lifree Underwear Sensation - Super Thin Pants , which incorporates our uniq ue “sweat absorption sheet” that reduces the temperature inside the diaper by 2℃ *2 with ten times the quick-drying capability compared to conventional products, ensuring comfort even during the hot summer.
Page 6
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -3- *1 An abbreviation for Activities of Daily Living, an indicator of the level of nursing care provided to those being cared for, which represents the basi c activities necessary for daily living, such as incontinence, eating, and bathing *2 Compared to conventional products of the Company ● Feminine Care Business Overseas, we responded to consumer needs with a unique and wide-ranging product lineup such as cooling sanitary napkins and shorts-shaped napkins. In China, where a cost-conscious attitude persists, particularly among young people, and recovery from past reputational damage is slower than expected amid economic uncertainty, we deployed a wide range of product lineups tailored to consumer needs. In addition to the strong performance of the skincare-inspired Naked Feel S amino acid-coated sanitary napkin, we are actively expanding the marketing of the Dong! Xi sanitary napkin, an unprecedented napkin which even absorbs “thick menstrual blood,” across various channels, and are working to stimulate demand in challenging conditions. Additionally, we launched collaboration project products with popular characters aimed at younger generations, increasing exposure in stores and on e-commerce platforms. In Indonesia, we renewed our core overnight products to meet the needs for extended use and promoted the “value of reassurance” mainly through promotions utilizing characters to alleviate concerns about leakage. In India, where the penetration rate of sanitary products is low, we continue to achieve strong sales growth by strengthening our sales channels and expanding our unique products with antibacterial features that cater to local needs. In the Middle East, amid concerns about supply chain disruptions and export delays to certain regions due to deteriorating conditions stemming from regional conflicts, aggressive marketing investments in products such as those containing olive oil that have been tailored to local lifestyles, proved successful, and net sales remained steady. In Japan, to meet the summer-specific needs brought on by the intense heat, we added sanitary napkins and delicate cleansing sheets as limited-time offerings to the Sofy Cool series, which was launched last year and received favorable reviews, in an effort to stimul ate new demand. Additionally, as part of initiatives strengthening our engagement with consumers through the digital domain, we have continued to provide personalized information through the Sofy Be service, a menstrual and health management app, which focuses on hormonal changes. During the current period, we also invested in advertising to increase awareness and promote usage. As the environment and values surrounding women change and lifestyles become more diverse, we continue to aim to maximize the lifetime value of women by providing comprehensive support not only during their menstrual periods but throughout the entirety of their daily lives. This empowers each woman to understand and manage her physical and mental state, thereby contributing to the improvement of her health and quality of life. ● Baby Care Business Overseas, we promoted the use of our products, particularly our pants-type disposable diapers, which are one of our strengths, as well as the deployment of un ique products. In India, where the use of disposable diapers is still low, even compared to other target countries, the Company focused on expanding sales areas and continued awareness activities. On the product side, we updated MamyPoko Pants All Night Absorb to premium quality, enhancing the sense of security for the skin during extended use and a sense of luxury, to enhance brand value. Furthermore, net sales and market shares continued to be solid as a result of continuously launching products, including pre-launching the high-value-added type product Premium Skin Breathe, which features the concept of “allowing skin to breathe” through e-commerce platforms. In countries such as Indonesia, Thailand and Vietnam, the Company promoted a two-brand strategy to serve both premium-conscious and price-conscious consumers. In the low-price segment in particular, we focused on building a supply system to respond rapidly to market changes and roll out products in an agile manner. In Indonesia, we have continuously improved MamyPoko Pants Awet products, such as by offering affordable small-pack versions, and updating the absorb ent core to allow consumers to use a single item comfortably for extended periods in response to consumers’ cost-consciousness. In Thailand, we launched diapers with “no front or back” that improve the ease of diaper changing and have been highly praised by customers as a product that reduces the burden of childcare.
Page 7
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -4- In Saudi Arabia, as in the Feminine Care Business, exports to neighboring countries were partially affected by supply chain disruptions caused by the escalating tensions in the Middle East. However, products such as those containing olive oil that have been tailored to local customs continued to perform well. As a result, we achieved a record-high market share in Saudi Arabia *3. In Japan, while the market is shrinking with lower bi rth rates, we have continued to address diverse needs through the two brands, moony and MamyPoko, based on our business philosophy of “giving parents more enjoyment as they raise their babies.” As a result, we maintained the No. 1 market share and achieved improved profitability. We also actively worked to improve consumer satisfaction and reduce environmental impact through both products and services. For example, for nursery facilities that have introduced the Tebura Toen® (Hands- Free Commute)*4 service developed in collaboration with BABY JOB Inc., we promoted the introduction of the nursery facility-exclusive product that uses recycled pulp extracted from used paper diapers. As a result, net sales and segment profit (core operating income) for the personal care business for the fiscal period under review were ¥396,815 million (up 4.0% year on year) and ¥48,039 million (up 10.7% year on year), respectively. *3 NielsenIQ June 2026 Share of Sales *4 A flat-rate subscription service for nursery facilities designed to reduce the burden on both parents and childcare workers, including the need for parents to prepare disposable diapers and wipes, carry bulky items to the facility, and for childcare workers to manage disposable diapers and wipes. 2) Pet Care Business In the Japanese market, amid the slowing growth of the overall market due to consumer’s increasing cost- consciousness, we continued to actively conduct promotions aimed at reigniting market growth, and worked to stimulate demand and revitalize the market. In the pet food business, catering to the growing demand for diverse textures and flavors as well as health- consciousness, we launched Silver Spoon Treats Japan Select Flavorful Crunch, a dry cat treat that offers the deliciousness of carefully selected ingredients from various regions of Japan, and Gran Deli Frecious Appetite-Stimulating Meaty*5 Type dog food, both of which have received strong support. Furthermore, we focused not only on product expansion but also on strengthening our sales strategy. For Silver Spoon and Three-Star Gourmet, we implemented package improvements to enhance brand recognition and adjusted the pack pricing to make them more affordable. As a result, we increased price-competitiveness at stores and net sales were steady. In the pet toiletry business, we stimulated demand by launching products such as the Deo-clean -3℃ Chilled Body Wipe Sheet for dogs, which releases heat upon wiping to lower the surface temperature by approximately 3 ℃*6, and the Manner Wear Long Hours Comfortable Diapers for Male Dogs, which incorporates our proprietary “skin-smoothing air holes”*8 that improve breathability by up to 300%*7. In addition, as part of our digital initiatives responding to diversifying purchasing behavior and information gathering using social media, we have continued to leverage a variety of channels, including the Q&A community DOQAT, where pet owners can share and resolve concerns about their dogs and cats, Food Matching, which uses AI to suggest the best food based on a pet’s health and preferences, and our official store on the TikTok Shop. Through these platforms, we have further strengthened our ties with consumers to expand brand awareness and enhance convenience. In North America, by focusing on wet-type cat snacks with new concepts that utilize Japanese technology and flexibly responding to market and consumer trends, both net sales and profitability remained steady. In China, which has the world’s second-largest market size after North America, the Company entered into a capital and business alliance with Jiangsu Jijia Pet Products Co., Ltd. (“JIA PETS”) *9 through its local Chinese subsidiary in November 2022, and began manufacturing pet food incorporating its unique concepts and technologies. During this period, we launched Golden Spoon , a dry cat food that combines high palatability with nutritional balance, and conducted proactive marketing, including utilizing social media and live commerce. By continuing to leverage the combination of manufacturing technology and know- how on production management, which have been cultivated in Japan, with JIA PETS’ production and R&D capacities, as well as sales capabilities in its e-commerce, the Company aims to achieve the No. 1 market share in the priority cities in China.
Page 8
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -5- Additionally, in Brazil, which is the third largest market in the world after North America and China and is expected to expand rapidly in the fu ture, in order to attain an early and full-scale entry into the pet care market, we acquired all shares of Nutrire Indústria de Alimentos Ltda., a company that operates prominent pet food brands such as Monello, through our consolidated subsidiary UNICHARM PET DO BRASIL LTDA, thereby making it a consolidated subsidiary (sub-subsidiary). Going forward, we will integrate the company’s strong business foundation, including production facilities and overseas export supply chain, with the Group’s marketing capabilities and sales expertise, and we aim to provide total care by steadily expanding the business through brand investment and strengthening our sales network. In the Southeast Asia region, wher e future market growth is expected, the Company aims to achieve dramatic business growth by proactively investing management resources in both food and toiletries due to emerging demands in Thailand, Indonesia, Vietnam, etc. As a result, net sales and segment profit (core oper ating income) for the pet care business for the fiscal period under review were ¥82,870 million (up 9.6% year on year) and ¥15,723 million (up 21.6% year on year), respectively. *5 Approximately 120% compared to Frecious for Adult Dogs (in the case of Appetite-Stimulating Meaty Type, Medium Size) *6 Surface temperature after one full wipe *7 Compared to products of the Company *8 Excluding SSS size. *9 Equity-method associate 3) Other Businesses In the category of business-use products, comprising mainly of products utilizing the Company’s core non- woven fabric and absorber processing and forming technology, we focused on promoting the sales of industrial materials. As a result, net sales and segment profit (core operating income) in other businesses for the fiscal period under review were ¥7,448 million (up 7.7% year on year) and ¥1,270 million (up 78.2% year on year), respectively. (2) Overview of the financial position for the fiscal period under review 1) Status of assets, liabilities and equity (Assets) Total assets as of June 30, 2026 were ¥1,231,452 million (up 0.7% compared with the end of the previous fiscal year). The major increases were ¥16,759 million in intangible assets and ¥4,037 million in other current assets mainly due to prepaid income taxes, and the major decrease was ¥12,106 million in other current and non- current financial assets mainly due to time deposits with deposit terms exceeding three months. (Liabilities) Total liabilities as of June 30, 2026 were ¥324,470 million (down 2.2% compared with the end of the previous fiscal year). The major increases were ¥6,418 million in other current and non-current financial liabilities mainly due to lease liabilities, ¥2,266 million in borrowings and ¥2,594 million in income tax payables, and the major decrease was ¥18,283 million in trade and other payables. (Equity) Total equity as of June 30, 2026 was ¥906,982 million ( up 1.8% compared with the end of the previous fiscal year). The major increase was ¥41,031 million in profit attributable to owners of parent, and the major decreases were ¥18,678 million in increase in treasury shares and ¥1,166 million in non-controlling interests. (Ratio of equity attributable to owners of parent) Ratio of equity attributable to owners of parent as of June 30, 2026 was 65.9%.
Page 9
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -6- 2) Status of cash flows Cash and cash equivalents as of June 30, 2026 were ¥254,470 million, an increase of ¥1,378 million from the end of the previous fiscal year. The respective cash flow positions for the six months ended June 30, 2026 were as follows: (Cash flows from operating activities) Net cash provided by operating activities was ¥61,563 million (¥59,286 million was provided in the same period of the previous fiscal year). The main inflow was due to profit before tax. (Cash flows from investing activities) Net cash used in investing activities was ¥16,997 million (¥1,216 million was used in the same period of the previous fiscal year). The main inflows were due to proceeds from withdrawal of ti me deposits and proceeds from sale and redemption of financial assets, and the main outflows were due to purchase of financial assets, payments into time deposits, and purchase of shares of subsidiaries resulting in change in scope of consolidation. (Cash flows from financing activities) Net cash used in financing activities was ¥47,620 million (¥45,605 million was used in the same period of the previous fiscal year). The main outflows were due to payments for purchase of treasury shares, dividends paid to owners of parent, and dividends paid to non-controlling interests. (3) Explanation of future estimate information such as forecast of consolidated financial results Regarding forecast of the full year financial results, we expect to see sharp rises in raw material prices and logistics costs, etc. as a consequence of escalating tensions in the Middle East. In response, the Group will promote Group-wide initiatives to offset these cost increases by introducing new and revamped products to pass on value and improve productivity. By steadily implementing these measures, we aim to ac celerate the establishment of a high-profit structure for the next fiscal year, aiming for business expansion and improved profitability in the subsequent period. Additionally, we have adjusted the assumed exchange rate based on the current actual rates. Furthermore, the differences from the forecast of consolid ated financial results for the full year announced in the “Consolidated Financial Results for the Three Months Ended March 31, 2026; Flash Report” on May 8, 2026, are as follows. Revision to the forecast of consolidated financial results for the full year Net Sales (Millions of Yen) Core Operating Income (Millions of Yen) Profit Before Tax (Millions of Yen) Profit Attributable to Owners of Parent (Millions of Yen) Basic Earnings Per Share (Yen) Previously announced forecasts (A) * 1,010,000 136,000 135,800 86,500 50.26 Revised forecast (B) 1,015,000 113,000 113,500 70,000 40.68 Change (B-A) 5,000 (23,000) (22,300) (16,500) – Change 0.5% (16.9)% (16.4)% (19.1)% – (Reference) Actual results for the previous fiscal year (fiscal year ended December 31, 2025) 945,268 108,884 105,386 65,212 37.30 * Forecast of consolidated financial results for the fu ll fiscal year ending December 31, 2026, announced on May 8, 2026.
Page 10
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -7- 2. Condensed Consolidated Financial Statements and Significant Notes Thereto (1) Condensed consolidated statement of financial position (Millions of Yen) Notes Fiscal Year Ended December 31, 2025 (as of December 31, 2025) Six Months Ended June 30, 2026 (as of June 30, 2026) Assets Current assets Cash and cash equivalents 253,092 254,470 Trade and other receivables 154,762 146,360 Inventories 123,344 125,610 Other current financial assets 100,279 80,363 Other current assets 10,167 14,204 Total current assets 641,644 621,007 Non-current assets Property, plant and equipment 275,748 278,853 Intangible assets 97,059 113,818 Deferred tax assets 16,966 17,617 Investments accounted for using equity method 19,584 21,205 Other non-current financial assets 160,589 168,400 Other non-current assets 11,585 10,553 Total non-current assets 581,532 610,446 Total assets 1,223,176 1,231,452
Page 11
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -8- (Millions of Yen) Notes Fiscal Year Ended December 31, 2025 (as of December 31, 2025) Six Months Ended June 30, 2026 (as of June 30, 2026) Liabilities and equity Liabilities Current liabilities Trade and other payables 221,583 203,299 Borrowings 3,488 6,850 Income tax payables 10,268 12,862 Other current financial liabilities 8,993 7,552 Other current liabilities 19,602 19,489 Total current liabilities 263,933 250,052 Non-current liabilities Borrowings 7,567 6,472 Deferred tax liabilities 15,312 14,632 Retirement benefit liabilities 15,942 16,112 Other non-current financial liabilities 23,368 31,227 Other non-current liabilities 5,795 5,976 Total non-current liabilities 67,984 74,419 Total liabilities 331,917 324,470 Equity Equity attributable to owners of parent Capital stock 15,993 15,993 Share premium 11,582 11,361 Retained earnings 801,367 826,906 Treasury shares (140,428) (159,106) Other components of equity 106,191 116,441 Total equity attributable to owners of parent 794,705 811,594 Non-controlling interests 96,554 95,388 Total equity 891,259 906,982 Total liabilities and equity 1,223,176 1,231,452
Page 12
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -9- (2) Condensed consolidated statement of income and Condensed consolidated statement of comprehensive income (Condensed consolidated statement of income) (Millions of Yen) Notes Six Months Ended June 30, 2025 (January 1, 2025 – June 30, 2025) Six Months Ended June 30, 2026 (January 1, 2026 – June 30, 2026) Net sales 3 464,170 487,133 Cost of sales (283,331) (288,873) Gross profit 180,839 198,260 Selling, general and administrative expenses 4 (123,825) (133,228) Other income 5 5,804 1,478 Other expenses (1,197) (2,005) Financial income 3,632 5,247 Financial costs (2,757) (3,145) Profit before tax 62,496 66,608 Income tax expenses (15,799) (17,779) Profit for the period 46,697 48,829 Profit attributable to Owners of parent 41,813 41,031 Non-controlling interests 4,884 7,798 Profit for the period 46,697 48,829 Earnings per share attributable to owners of parent Basic earnings per share (Yen) 23.84 23.75 Diluted earnings per share (Yen) – – Reconciliation of changes from gross profit to core operating income (Millions of Yen) Gross profit 180,839 198,260 Selling, general and administrative expenses (123,825) (133,228) Core operating income 57,014 65,032
Page 13
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -10- (Condensed consolidated statement of comprehensive income) (Millions of Yen) Notes Six Months Ended June 30, 2025 (January 1, 2025 – June 30, 2025) Six Months Ended June 30, 2026 (January 1, 2026 – June 30, 2026) Profit for the period 46,697 48,829 Other comprehensive income, net of tax Items that will not be reclassified to profit or loss Net changes in equity instruments measured at fair value through other comprehensive income 1,224 1,402 Remeasurements related to net defined benefit liabilities (assets) 80 13 Subtotal 1,304 1,414 Items that may be reclassified to profit or loss Net changes in debt instruments measured at fair value through other comprehensive income 6 48 Changes in fair value of cash flow hedges (10) (2) Exchange differences on translation in foreign operations (32,570) 9,969 Share of other comprehensive income of investments accounted for using equity method (1,256) 1,284 Subtotal (33,831) 11,298 Total other comprehensive income, net of tax (32,527) 12,713 Total comprehensive income 14,170 61,541 Total comprehensive income attributable to Owners of parent 15,193 51,448 Non-controlling interests (1,023) 10,093 Total comprehensive income 14,170 61,541
Page 14
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -11- (3) Condensed consolidated statement of changes in equity Six Months Ended June 30, 2025 (January 1, 2025 – June 30, 2025) (Millions of Yen) Notes Equity attributable to owners of parent Non- controlling interests Total equity Capital stock Share premium Retained earnings Treasury shares Other components of equity Total Balance at January 1, 2025 15,993 11, 405 766,342 (119,412) 98,734 773,062 100,649 873,711 Profit for the period – – 41,813 – – 41,813 4,884 46,697 Other comprehensive income – – – – (26,620) (26,620) (5,907) (32,527) Total comprehensive income – – 41,813 – (26,620) 15,193 (1,023) 14,170 Purchase of treasury shares – – – (12,001) – (12,001) – (12,001) Disposal of treasury shares – (752) – 753 – 1 – 1 Dividends – – (12,900) – – (12,900) (13,659) (26,559) Equity transactions with non-controlling interests – 440 – – (1,452) (1,012) 4,166 3,154 Share-based payment transactions – 361 – 243 – 604 – 604 Transfer from other components of equity to retained earnings – – 527 – (527) – – – Total transactions with owners – 49 (12,374) (11,006) (1,979) (25,309) (9,493) (34,802) Balance at June 30, 2025 15,993 11,454 795,781 (130,417) 70,136 762,946 90,132 853,079 Six Months Ended June 30, 2026 (January 1, 2026 – June 30, 2026) (Millions of Yen) Notes Equity attributable to owners of parent Non- controlling interests Total equity Capital stock Share premium Retained earnings Treasury shares Other components of equity Total Balance at January 1, 2026 15,993 11, 582 801,367 (140,428) 106,191 794,705 96,554 891,259 Profit for the period – – 41,031 – – 41,031 7,798 48,829 Other comprehensive income – – – – 10,417 10,417 2,295 12,713 Total comprehensive income – – 41,031 – 10,417 51,448 10,093 61,541 Purchase of treasury shares – (12) – (19,000) – (19,012) – (19,012) Dividends – – (15,659) – – (15,659) (11,259) (26,918) Share-based payment transactions – (210) – 322 – 112 – 112 Transfer from other components of equity to retained earnings – – 168 – (168) – – – Total transactions with owners – (222) (15,492) (18,678) (168) (34,559) (11,259) (45,818) Balance at June 30, 2026 15,993 11,361 826,906 (159,106) 116,441 811,594 95,388 906,982
Page 15
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -12- (4) Condensed consolidated statement of cash flows (Millions of Yen) Notes Six Months Ended June 30, 2025 (January 1, 2025 – June 30, 2025) Six Months Ended June 30, 2026 (January 1, 2026 – June 30, 2026) Cash flows from operating activities Profit before tax 62,496 66,608 Depreciation and amortization expenses 23,638 23,301 Interest income (2,808) (3,609) Dividend income (508) (539) Interest expenses 1,358 566 Foreign exchange loss (gain) 1,799 (441) Loss (gain) on sale and retirement of fixed assets 453 350 Decrease (increase) in trade and other receivables 10,950 11,629 Decrease (increase) in inventories (4,017) 863 Increase (decrease) in trade and other payables (11,825) (21,253) Other, net (384) (1,423) Subtotal 81,152 76,052 Interest received 3,051 3,542 Dividends received 508 539 Interest paid (1,349) (559) Income taxes refund 307 185 Income taxes paid (24,383) (18,196) Net cash provided by (used in) operating activities 59,286 61,563 Cash flows from investing activities Payments into time deposits (36,284) (54,567) Proceeds from withdrawal of time deposits 71,147 89,118 Purchase of property, plant and equipment, and intangible assets (14,575) (10,988) Proceeds from sale of property, plant and equipment, and intangible assets 207 417 Long-term loan advances (13) (11) Purchase of financial assets (40,919) (57,894) Proceeds from sale and redemption of financial assets 20,402 38,257 Purchase of shares of subsidiaries and associates (1,608) – Purchase of shares of subsidiaries resulting in change in scope of consolidation 6 – (21,965) Other, net 428 636 Net cash provided by (used in) investing activities (1,216) (16,997)
Page 16
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -13- (Millions of Yen) Notes Six Months Ended June 30, 2025 (January 1, 2025 – June 30, 2025) Six Months Ended June 30, 2026 (January 1, 2026 – June 30, 2026) Cash flows from financing activities Net increase (decrease) in short-term borrowings 3,742 1,901 Proceeds from long-term borrowings 1,389 – Repayments of long-term borrowings (13,485) – Repayments of lease liabilities (3,686) (3,659) Payments for purchase of treasury shares (12,001) (19,012) Dividends paid to owners of parent (12,899) (15,653) Dividends paid to non-controlling interests (11,438) (11,197) Proceeds from share issuance to non-controlling interests 2,773 – Other, net 1 – Net cash provided by (used in) financing activities (45,605) (47,620) Effect of exchange rate changes on cash and cash equivalents (7,481) 4,431 Net increase (decrease) in cash and cash equivalents 4,983 1,378 Cash and cash equivalents at beginning of period 261,054 253,092 Cash and cash equivalents at end of period 266,037 254,470
Page 17
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -14- (5) Notes to the condensed consolidated financial statements 1. Notes regarding going concern assumptions None. 2. Material accounting policies Material accounting policies adopted for these condensed consolidated financial statements are the same as those adopted to the consolidated financial statements for the fiscal year ended December 31, 2025. 3. Segment information (1) Overview of reportable segments The Group’s reportable segments are part of its or ganizational units whose financial information is individually available, and are subject to regular re view by its Board of Directors, the chief operating decision maker, for the purpose of deciding the allocation of its managerial resources and evaluating its business performance. The Group is composed of three bus inesses, namely the personal care business, the pet care business and other businesses as its basic units, and has been engaged in its business activities by comprehensively developing domestic and overseas strategies by business unit. Therefore, the “personal care business,” the “pet care business,” and “other businesses” constitute the Group’s reportable segments. In the personal care business, the Group manufactures and sells wellness care products, feminine care products, and baby care products. In the pet care business, the Group manufactures and sells pet food products and pet toiletry products. In other businesses, the Group manufactures and sells industrial materials related products, etc. The accounting policies for the reportable segments are the same as for the condensed consolidated financial statements.
Page 18
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -15- (2) Sales and results by reportable segment Sales and results by reportable segment are as follows. (Millions of Yen) Six Months Ended June 30, 2025 (January 1, 2025 – June 30, 2025) Reportable segments Adjustments Amounts reported in condensed consolidated financial statements Personal care Pet care Other Total Sales to external customers 381,679 75,578 6,913 464,170 – 464,170 Sales across segments – – 90 90 (90) – Total segment sales 381,679 75, 578 7,003 464,260 (90) 464,170 Segment profit (loss) (Core operating income) 43,376 12,925 713 57,014 – 57,014 Other income 5,804 Other expenses (1,197) Financial income 3,632 Financial costs (2,757) Profit before tax 62,496 (Millions of Yen) Six Months Ended June 30, 2026 (January 1, 2026 – June 30, 2026) Reportable segments Adjustments Amounts reported in condensed consolidated financial statements Personal care Pet care Other Total Sales to external customers 396,815 82,870 7,448 487,133 – 487,133 Sales across segments – – 84 84 (84) – Total segment sales 396,815 82, 870 7,531 487,217 (84) 487,133 Segment profit (loss) (Core operating income) 48,039 15,723 1,270 65,032 – 65,032 Other income 1,478 Other expenses (2,005) Financial income 5,247 Financial costs (3,145) Profit before tax 66,608
Page 19
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -16- 4. Selling, general and administrative expenses The breakdown of selling, general and administrative expenses is as follows. (Millions of Yen) Six Months Ended June 30, 2025 (January 1, 2025 – June 30, 2025) Six Months Ended June 30, 2026 (January 1, 2026 – June 30, 2026) Freight-out expenses 32,796 36,348 Sales promotion expenses 17,161 17,560 Advertising expenses 15,502 17,220 Employee benefit expenses 27,277 28,598 Depreciation and amortization expenses 7,241 6,735 Research and development expenses 5,515 7,209 Others 18,333 19,556 Total 123,825 133,228 (Note) The research and development expenses for the six months ended June 30, 2026 reflect the amounts after reviewing and revising the scope of depreciation expenses, labor costs, and other costs recorded as research and development expenses to more accurately reflect the actual state of our research and development framework in the Company’s business activities. The amounts impacted by this revision in each item for the six months ended June 30, 2025 are as follows: employee benefit expenses of ¥806 million, depreciation and amortization expenses of ¥499 million, and others of ¥34 million. 5. Other income “Other income” for the six months ended June 30, 2025 includes fire insurance proceeds of ¥5,274 million in relation to a fire accident that took place on June 24, 2020, at Ahmedabad Factory of Unicharm India Private Ltd., a subsidiary of the Company. 6. Business combinations On June 30, 2026, UNICHARM PET DO BRASIL LTDA, the Company’s consolidated subsidiary, acquired all shares of Nutrire Indústria de Alimentos Ltda. (hereinafter “Nutrire”), which is engaged in the production and sale of pet food in Brazil and exports primarily to countries in Central and South America. (1) Overview of the business combination 1) Name and business descriptions of the acquiree Name of the acquiree: Nutrire Indústria de Alimentos Ltda. Business descriptions: production and sale of pet food 2) Main reasons for the business combination The Company launched our pet care business in 1986 and provide comprehensive care—from nutrition to waste management—by offering specialized products such as pet food, waste pads, litter boxes, and disposable diapers. Through these initiatives, we aim to realize a “Cohesive Society” that includes pets, their owners, and even those who do not own pets. Furthermore, in the 13th Mid-term Management Plan (2026–2030), which began in 2026, we have identified wellness care and pet care as key growth drivers. By concentrating our management resources in these areas, we aim to achieve top-line growth and improve profitability. Brazil’s pet care market is the third largest in the world, and is expected to continue growing at an annual rate exceeding 10% against the backdrop of r ecent economic growth and the increasing trend of treating pets as “family members.” Founded in 2001, Nutrire is a Brazilian pet food manufacturer that handles the entire process, from raw material selection to manufacturing and sales. In addition to providing high-quality premium pet food through a production system that utilizes cutting-edge technology, the company has established an extensive export network centered on neighboring countries. By combining Nutrire’s strengths in high-quality production infrastructure with the Company’s long- cultivated marketing and product development capabilities, the Company aims to dramatically expand its pet care business in the rapidly growing Brazilian market and the wider Central and South American region.
Page 20
TRANSLATION FOR REFERENCE PURPOSES ONLY Unicharm Corporation (8113) Consolidated Financ ial Results for the Six Months Ended June 30, 2026 -17- 3) Date of acquisition of control June 30, 2026 (2) Fair value of consideration transferred, assets acquir ed, and liabilities assumed as of date of acquisition of control (Millions of Yen) Fair value of consideration transferred Amount Fair value of consideration transferred Cash 22,583 Fair value of assets acquired and liabilities assumed Current assets 3,631 Non-current assets 4,519 Current liabilities 2,027 Non-current liabilities 2,785 Net fair value of assets acquired and liabilities assumed 3,339 Goodwill 19,244 • As the allocation of the acquisition cost has not been completed, the amounts are provisionally calculated based on the information available at this time. • Consideration transferred may fluctuate due to price adjustments resulting from changes in working capital, among other factors. • The direct cost of the acquisition was ¥278 million, and is included in “selling, general and administrative expenses” in the condensed consolidated statement of income. • Acquired trade and other receivables were ¥1,608 million, and there are no contractual cash flows that are expected to be uncollectible. (3) Effects on cash flows from the business combination (Millions of Yen) Amount Payments of consideration transferred (22,583) Cash and cash equivalents acquired 617 Payments for acquisition of subsidiaries (21,965) (4) Impacts on the Group’s financial results The estimated profit and loss information assuming the acquisition had been completed at the beginning of the current fiscal year is not included due to the immaterial impact on the condensed consolidated statement of income. Furthermore, the profit and loss information assuming that the business combination was conducted at the beginning of the fiscal year has not been subject to an interim review by an auditing firm.