Nitto Denko : Quarterly Financial Summary Second Quarter FY2025

Date: October 27, 2025

Summary of Consolidated Financial Statements for the Second Quarter Ended September 30, 2025 (IFRS Basis)

Listed company name:	Nitto Denko Corporation
Stock exchange listing:	Tokyo Stock Exchange, Prime Market
Code Number:	6988	URL	https://www.nitto.com/

Company Representative: Hideo Takasaki, President

Contact Person: Yasuhiro Iseyama, Senior Executive Vice President, Director of Corporate Accounting & Finance Division Phone: [phone]

Filing date of semi-annual securities report: October 29, 2025 Estimated starting date of dividend paying: November 28, 2025 Preparation of supplementary explanatory materials: Yes

Holding of earnings release conference: Yes (for investment analysts and institutional investors)

(All monetary values noted herein are rounded down to the nearest million yen)

1. Consolidated financial results for the six months ended September 30, 2025

   1. Operating results (% of change from same period in the previous year)

      	Revenue		Operating profit		Profit before income taxes		Net profit		Net profit attributable to owners of the parent company		Total comprehensive income
      For the six months ended September 30, 2025 For the six months ended September 30, 2024	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      	513,569 521,723	(1.6) 16.1	94,504 109,267	(13.5) 69.5	95,167 108,932	(12.6) 69.6	68,955 80,009	(13.8) 80.8	68,926 79,975	(13.8) 80.9	83,608 57,652	45.0 (36.6)

      	Basic earnings per share	Diluted earnings per share
      	Yen	Yen
      For the six months ended September 30, 2025	101.32	101.28
      For the six months ended September 30, 2024	113.92	113.88

      (Note) The Company has implemented the stock split with an effective date of October 1, 2024 and a record date of September 30, 2024. Each share of common stock has been split into five shares. The above basic and diluted earnings per share for the six months ended September 30, 2024 and 2025 are based on the assumption that the stock split is conducted at the beginning of the fiscal year ended March 31, 2025.

   2. Financial position

      	Total assets	Total equity	Equity attributable to owners of the parent company	Ratio of equity attributable to owners of the parent company to total assets
      	Millions of yen	Millions of yen	Millions of yen	%
      As of September 30, 2025	1,326,861	1,049,092	1,048,051	79.0
      As of March 31, 2025	1,321,920	1,045,114	1,044,083	79.0

2. Dividends

   	Dividends per share
   	1Q	2Q	3Q	Year-end	Annual
   March, 2025 March, 2026	Yen - -	Yen 140.00 30.00	Yen -	Yen 28.00	Yen -
   (Forecast) March, 2026			-	30.00	60.00

   (Note) 1. Revision of dividend forecast in the current quarter: No

   2. The Company has implemented the stock split with an effective date of October 1, 2024 and a record date of September 30, 2024. Each share of common stock has been split into five shares. The above year-end dividend per share for the fiscal year ended March 31, 2025 is based on a number of shares taking into account the stock split. The total annual dividend per share for the fiscal year ended March 31, 2025 is not presented because the total of the interim dividend and the year-end dividend cannot be calculated due to effect of the stock split. With taking the stock split into account, the interim dividend per share for the fiscal year ended March 31, 2025 would be 28 yen and the total annual dividend per share for the fiscal year ended March 31, 2025 would be 56 yen.

3. Forecast for fiscal year ending March 31, 2026

(% of change from same period in the previous year)

	Revenue		Operating profit		Profit before income taxes		Net profit		Net profit attributable to owners of the parent company		Basic earnings per share
Annual	Millions of yen 995,000	% (1.9)	Millions of yen 173,000	% (6.8)	Millions of yen 173,000	% (6.7)	Millions of yen 126,000	% (8.2)	Millions of yen 126,000	% (8.2)	Yen 185.21

(Note) Revision of consolidated forecast in the current quarter: Yes

• Others

  1. Significant changes in the scope of consolidation during the period: No

  2. Changes in accounting policies applied and changes in accounting estimates

     1. Changes in accounting policies required by IFRS: No

     2. Changes in accounting policies other than the above: No

     3. Changes in accounting estimates: No

  3. Number of issued shares (Common stock)

     1. Number of issued shares at the end of the period (including treasury shares)

        As of September 30, 2025: 706,760,750 As of March 31, 2025: 706,760,750

     2. Number of treasury shares at the end of the period

        As of September 30, 2025: 33,101,050 As of March 31, 2025: 11,826,050

     3. Average number of issued shares during the period (cumulative from the beginning of the period)

        April-September 2025: 680,298,516 April-September 2024: 702,006,809

        (Note) The Company has implemented the stock split with an effective date of October 1, 2024 and a record date of September 30, 2024. Each share of common stock has been split into five shares. The above "Number of issued shares at the end of the period", "Number of treasury shares at the end of the period" and "Average number of issued shares during the period" are based on the assumption that the stock split is conducted at the beginning of the fiscal year ended March 31, 2025.

• These semi-annual securities reports are not subject to review procedures by Certified Public Accountants or audit firm.

• Explanations for adequate utilization of the forecast and other special matters

The forward-looking statements shown in this report, including the forecast, are prepared based on information available to the Company and on certain assumptions deemed reasonable as of the issuing date of the report. Consequently, the statements herein do not constitute promises regarding actual results by the Company. Actual results may differ materially from forecasted figures due to various unknown factors. For conditions regarding this forecast and precaution for use, please refer to "1. Overview of operating results, etc. (3) Explanation of forecasts and other projections" on page 6 of the Attachment to this summary of consolidated financial results.

(Attached Documents) Index

1. Overview of operating results, etc. 2

   1. Overview of operating results during the period 2

   2. Overview of financial position during the period. 6

   3. Explanation of forecasts and other projections. 6

2. Interim Consolidated Financial Statements and Key Notes. 7

   1. Interim consolidated statement of financial position. 7

   2. Interim consolidated statement of profit or loss and interim consolidated statement of comprehensive income. 9

   3. Interim consolidated statement of changes in equity. 11

   4. Interim consolidated statement of cash flows. 12

   5. Notes on interim consolidated financial statements. 13

(Notes on going concern assumption). 13

(Notes on interim consolidated financial statements). 13

(Additional information). 14

(Segment information). 15

(Notes on dividends). 17

(Equity and other equity items). 17

(Revenue). 18

(Per share information). 20

(Significant subsequent events). 20

1. Overview of operating results, etc

   1. Overview of operating results during the period

      During the second quarter of the fiscal year ending March 31, 2026 (April 1, 2025 through September 30, 2025), the economic environment experienced disruptions due to a series of tariff measures implemented by U.S. President Trump, which caused confusion in the economic and trade policies of various countries. However, as certain agreements among major countries progressed, the uncertainty around the future outlook has gradually eased. In the United States, despite the fact that the impact of tariff increases on prices has yet to materialize and concerns regarding a resurgence of inflation persist, the Federal Reserve Board (FRB) proceeded with an interest rate reduction in September in response to deteriorating employment conditions. In Europe, particularly in Germany, increased defense spending has helped mitigate the economic downturn amid a continued decline in automotive production. In China, the government's continued implementation of a trade-in program to promote the replacement of consumer goods helped support personal consumption. Additionally, exports of semiconductors and IT-related products routed through Southeast Asian countries increased, aimed at circumventing U.S. tariffs. In Japan, inbound consumption remained strong, and demand in service sectors such as dining out supported personal consumption. However, in the manufacturing sector, downward pressure on corporate performance intensified due to declining exports and deferred capital investment, both attributable to the adverse effects of U.S. tariffs. In the foreign exchange market, the yen appreciated against the

      U.S. dollar compared with the same period of the previous year.

      Under these circumstances, in the key markets of Nitto Group (the "Group"), production was partially brought forward in IT devices and high-end smartphones during the grace period prior to the implementation of additional U.S. tariffs, resulting in increased demand for our products. In oligonucleotide contract manufacturing business, a project related to major diseases progressed from the clinical stage to the commercialization stage, contributing to improved profitability. On the other hand, the yen's exchange rate against the U.S. dollar for the second quarter ended September 30, 2025, was 146.4 yen to the dollar, a 4.7 % appreciation of the yen compared with the same period of the previous year, and the effect of the stronger yen decreased operating profit by 10.5 billion yen.

      As a result of the above, revenue decreased by 1.6% from the same period of the previous year (changes hereafter are given in comparison with the same period of the previous year) to 513,569 million yen. Operating profit decreased by 13.5% to 94,504 million yen, profit before income taxes decreased by 12.6% to 95,167 million yen, net profit decreased by 13.8% to 68,955 million yen, and net profit attributable to owners of the parent company decreased by 13.8% to 68,926 million yen.

      Summary of results by segment

      ① Industrial Tape

      In Functional Base Products, revenue increased from the same period of the previous year. Demand for assembly materials used in high-end smartphones increased due to the expansion of models adopting battery bonding electrical release tape. In addition, demand for process materials used in the production of semiconductor memories and ceramic capacitors increased. Revenue for automotive materials decreased due to the decline in the number of automotive unit production by Japanese manufacturers in China.

      As a result of the above, revenue increased by 1.4% to 179,189 million yen and operating profit decreased by 6.3% to 23,683 million yen.

      ② Optronics

      In Information Fine Materials, revenue did not reach the level of the same period of the previous year. Demand for optical films increased due to the accelerated production of high-end laptop PCs and tablets. On the other hand, revenue decreased due to the strategic withdrawal from optical films for LCD smartphones and price reductions resulting from material rationalization of process protection films.

      In Circuit Materials, revenue did not reach the level of the same period of the previous year. Demand for high-precision circuits increased due to the accelerated production of high-end smartphones. On the other hand, demand for Circuit Integrated Suspension (CIS) used in Hard Disk Drives (HDDs) decreased compared with the same period of the previous year, during which the HDDs market experienced a rapid recovery in demand.

      As a result of the above, revenue decreased by 5.7% to 269,859 million yen and operating profit decreased by 19.8% to 77,086 million yen.

      ③ Human Life

      In Life Science, revenue increased from the same period of the previous year. Demand for oligonucleotide contract manufacturing and nucleic acid synthesis materials (NittoPhaseTM) used within the manufacturing process increased. Additionally, production for the large-scale project expected to be commercialized in the future has begun in the second quarter of the current fiscal year. In nucleic acid drug discovery, Phase 1 clinical trial of intractable cancer drug was completed in the first quarter of the previous fiscal year and the Group continues to work toward out-licensing its pipeline.

      In Membrane (high-polymer separation membrane), revenue did not reach the level of the same period of the previous year. While demand for Zero Liquid Discharge (ZLD) contributing to the complete reduction of industrial wastewater and effluent remained strong in China due to the tightening of environmental regulations relating to wastewater, demand for high-polymer separation membrane for various industrial applications decreased.

      In Personal Care Materials, revenue increased from the same period of the previous year. The Group promoted our new products in hygiene materials for diapers and environmentally friendly products using biodegradable technologies.

      As a result of the above, revenue increased by 6.5% to 69,619 million yen and operating loss amounted to 1,598 million yen. (operating loss of 4,482 million yen was reported in the same period of the previous year)

      ④ Others

      Please note that this segment includes new products that have not generated sufficient revenue yet. The Group is concentrating our management resources on themes that are candidates for PlanetFlags/HumanFlags in areas of next generation semiconductors, environmental solutions, and digital health, with the aim of commercializing them as early as possible.

      As a result of the above, revenue increased by 372.9% to 8 million yen and operating loss amounted to 3,490 million yen. (operating loss of 3,587 million yen was reported in the same period of the previous year)

      (Reference) Segment Information (Millions of yen)

      For the six months ended September 30, 2024

      For the six months ended September 30, 2025

      Industrial Tape

      Optronics

      Human Life

      Others Adjustment Total

      Revenue Revenue Y-o-Y (%)

      Revenue 176,701 179,189 101.4

      Operating profit 25,275 23,683 93.7

      Information Fine Materials 213,762 200,101 93.6

      Circuit Materials 72,454 69,758 96.3

      Total 286,217 269,859 94.3

      Operating profit 96,136 77,086 80.2

      Life Science 21,031 24,988 118.8

      Membrane 17,458 16,740 95.9

      Personal Care Materials 26,907 27,890 103.7

      Total 65,397 69,619 106.5

      Operating profit (4,482) (1,598) -

      Revenue 1 8 472.9

      Operating profit (3,587) (3,490) -

      Revenue (6,594) (5,107) -

      Operating profit (4,075) (1,176) -

      Revenue 521,723 513,569 98.4

      Operating profit 109,267 94,504 86.5

      (Note) As a result of changes in the management structure for the six months ended September 30, 2025, some changes have been made to reporting segments. Such changes have been reflected in the figures for the six months ended September 30, 2024.

      (Reference) Segment Information (annual forecast) (Millions of yen)

      Forecasts of fiscal year ending March 31, 2026

      Industrial Tape

      Optronics

      Human Life

      Others Adjustment Total

      Revenue Y-o-Y (%)

      Revenue 353,500 100.5

      Operating profit 47,000 102.5

      Information Fine Materials 383,000 94.0

      Circuit Materials 127,500 94.9

      Total 510,500 94.2

      Operating profit 141,500 81.7

      Life Science 53,500 120.1

      Membrane 34,000 98.1

      Personal Care Materials 54,000 101.5

      Total 141,500 106.9

      Operating profit (1,000) -

      Revenue - -

      Operating profit (7,500) -

      Revenue (10,500) -

      Operating profit (7,000) -

      Revenue 995,000 98.1

      Operating profit 173,000 93.2

   2. Overview of financial position during the period

      The Group's financial position at the end of the second quarter of the fiscal year ending March 31, 2026 was as follows. Compared with the end of the fiscal year ended March 31, 2025, total assets increased by 4,940 million yen to 1,326,861 million yen and total liabilities increased by 962 million yen to 277,768 million yen. Total equity increased by 3,978 million yen to 1,049,092 million yen. This was mainly due to a 49,468 million yen increase in retained earnings, a 59,885 million yen increase in treasury shares and a 14,364 million yen increase in other components of equity from the end of the fiscal year ended March 31, 2025. As a result, the ratio of equity attributable to owners of the parent company to total assets changed from 79.0% at the end of the fiscal year ended March 31, 2025 to 79.0% at the end of the second quarter of the fiscal year ending March 31, 2026. The main changes in assets were a decrease in cash and cash equivalents of 60,158 million yen, an increase in trade and other receivables of 25,856 million yen, an increase in inventories of 8,778 million yen, an increase in other financial assets of 3,152 million yen, an increase in other current assets of 6,221 million yen, an increase in property, plant and equipment of 14,301 million yen, an increase in goodwill of 3,676 million yen, an increase in financial assets of 3,338 million yen, an increase in other noncurrent assets of 2,086 million yen. In terms of liabilities, trade and other payables increased by 13,409 million yen, income tax payables decreased by 5,889 million yen, other current financial liabilities decreased by 7,787 million yen, other noncurrent financial liabilities decreased by 1,116 million yen, deferred tax liabilities increased by 1,211 million yen.

   3. Explanation of forecasts and other projections

      In the business environment surrounding the Group, demand for products used in IT devices and high-end smartphones has been increasing, and this is expected to contribute positively to revenue. In light of this circumstance, the consolidated forecasts for the full fiscal year ending March 31, 2026, have been revised.

      Revision of consolidated forecasts for the fiscal year ending March 31, 2026 (April 1, 2025 through March 31, 2026)

      	Revenue	Operating profit	Profit before income taxes	Net profit	Net profit attributable to owners of the parent company	Basic earnings per share
      Previous forecast (A)	Millions of yen 984,000	Millions of yen 170,000	Millions of yen 170,000	Millions of yen 125,000	Millions of yen 125,000	Yen 179.87
      Revised forecast (B)	995,000	173,000	173,000	126,000	126,000	185.21
      Difference (B) - (A)	11,000	3,000	3,000	1,000	1,000	-
      Rate of change (%)	1.1	1.8	1.8	0.8	0.8	-
      (Reference) Consolidated financial results for the fiscal year ended March 31, 2025	1,013,878	185,667	185,329	137,307	137,237	195.74

      (Note) The above results and forecasts are forward-looking statements determined by the Company based on currently available information that may include risks and uncertainties. Please be aware that actual results may vary significantly due to various factors.

2. Interim Consolidated Financial Statements and Key Notes

   1. Interim consolidated statement of financial position

      Assets

      Current assets

      (Millions of yen)

      As of March 31, 2025 As of September 30, 2025

      Cash and cash equivalents	363,344		303,185
      Trade and other receivables	210,418		236,275
      Inventories	142,932		151,711
      Other financial assets	7,732		10,885
      Other current assets	25,781		32,002
      Total current assets	750,209		734,060
      Noncurrent assets
      Property, plant and equipment	417,636		431,938
      Right-of-use assets	19,058		18,156
      Goodwill	57,167		60,844
      Intangible assets	17,026		16,194
      Investments accounted for using equity method	7,319		6,458
      Financial assets	11,096		14,435
      Deferred tax assets	17,873		18,154
      Other noncurrent assets	24,533		26,620
      Total noncurrent assets	571,711		592,801
      Total assets	1,321,920		1,326,861

      Liabilities and Equity Liabilities

      Current liabilities

      (Millions of yen)

      As of March 31, 2025 As of September 30, 2025

      Trade and other payables	100,508		113,917
      Borrowings	455		515
      Income tax payables	28,183		22,294
      Other financial liabilities	36,102		28,315
      Other current liabilities	56,485		56,652
      Total current liabilities	221,735		221,695
      Noncurrent liabilities
      Other financial liabilities	20,160		19,043
      Defined benefit liabilities	28,991		29,707
      Deferred tax liabilities	3,856		5,068
      Other noncurrent liabilities	2,062		2,254
      Total noncurrent liabilities	55,070		56,073
      Total liabilities	276,806		277,768

      Equity

      Equity attributable to owners of the parent company

      Share capital	26,783	26,783
      Capital surplus	49,934	49,953
      Retained earnings	890,040	939,508
      Treasury shares	(31,799)	(91,684)
      Other components of equity	109,124	123,489
      Total equity attributable to owners of the parent company	1,044,083	1,048,051
      Noncontrolling interests	1,031		1,041
      Total equity	1,045,114		1,049,092
      Total liabilities and equity	1,321,920		1,326,861

   2. Interim consolidated statement of profit or loss and Interim consolidated statement of comprehensive income (Interim consolidated statement of profit or loss)

      (Millions of yen)

      For the six months ended For the six months ended

      	September 30, 2024		September 30, 2025
      Revenue	521,723		513,569
      Cost of sales	312,522		316,246
      Gross profit	209,200		197,323
      Selling, general and administrative expenses	75,301		75,351
      Research and development expenses	23,021		23,286
      Other income	4,212		4,157
      Other expenses	5,822		8,338
      Operating profit	109,267		94,504
      Finance income	1,482		1,583
      Finance expenses	1,709		994
      Share of profit of investments accounted for using the equity method	(107)		74
      Profit before income taxes	108,932		95,167
      Income tax expenses	28,922		26,212
      Net profit	80,009		68,955
      Net profit attributable to:
      Owners of the parent company	79,975		68,926
      Noncontrolling interests	33		28
      Total	80,009		68,955
      Earnings per share attributable to owners of the parent company
      Basic earnings per share (Yen)	113.92	101.32
      Diluted earnings per share (Yen)	113.88	101.28

      (Interim consolidated statement of comprehensive income)

      (Millions of yen)

      For the six months ended September 30, 2024

      For the six months ended September 30, 2025

      Net profit 80,009 68,955

      Other comprehensive income

      Items that will not be reclassified to profit or loss

      Net changes on financial assets measured at fair value

      through other comprehensive income Items that may be reclassified to profit or loss

      Exchange differences on translation of foreign operations

      (25) 50

      (22,052) 14,750

      Net changes in fair value of cash flow hedges 0 (0)

      Share of other comprehensive income of investments

      accounted for using equity method

      (278) (146)

      Total other comprehensive income	(22,356)		14,653
      Total comprehensive income	57,652		83,608
      Total comprehensive income attributable to: Owners of the parent company	57,620		83,579
      Noncontrolling interests	32		29
      Total	57,652		83,608

   3. Interim consolidated statement of changes in equity For the six months ended September 30, 2024

Equity attributable to owners of the parent company

(Millions of yen)

Share capital

Capital surplus

Retained earnings

Treasury shares

Other components

Total

Noncontrolling

Total equity

									of equity				interests
Balance as of April 1, 2024	26,783		49,928		808,062		(23,298)		122,544		984,020		1,028		985,048
Net profit	-		-		79,975		-		-		79,975		33		80,009
Other comprehensive income	-		-		-		-		(22,355)		(22,355)		(1)		(22,356)
Total comprehensive income	-		-		79,975		-		(22,355)		57,620		32		57,652
Share based remuneration transactions	-		-		-		-		(139)		(139)		-		(139)
Dividends	-		-		(18,388)		-		-		(18,388)		(20)		(18,408)
Changes in treasury shares	-		(26,308)		-		11,544		-		(14,763)		-		(14,763)
Acquisition of NCI without change in	-		6		-		-		-		6		(63)		(56)
control
Transfer from
retained earnings to capital surplus	-		26,263		(26,263)		-		-		-		-		-
Total transactions with owners	-		(38)		(44,651)		11,544		(139)		(33,285)		(83)		(33,368)
Balance as of September 30, 2024	26,783		49,889		843,386		(11,753)		100,049		1,008,355		977		1,009,332

For the six months ended September 30, 2025

Equity attributable to owners of the parent company

(Millions of yen)

	Share capital		Capital surplus		Retained earnings		Treasury shares		Other components of equity		Total		Noncontrolling interests		Total equity
Balance as of April 1, 2025	26,783		49,934		890,040		(31,799)		109,124		1,044,083		1,031		1,045,114
Net profit	-		-		68,926		-		-		68,926		28		68,955
Other comprehensive income	-		-		-		-		14,652		14,652		1		14,653
Total comprehensive income	-		-		68,926		-		14,652		83,579		29		83,608
Share based remuneration transactions	-		19		-		-		(287)		(267)		-		(267)
Dividends	-		-		(19,458)		-		-		(19,458)		(19)		(19,477)
Changes in treasury shares	-		-		-		(59,885)		-		(59,885)		-		(59,885)
Total transactions with owners	-		19		(19,458)		(59,885)		(287)		(79,611)		(19)		(79,630)
Balance as of September 30, 2025	26,783		49,953		939,508		(91,684)		123,489		1,048,051		1,041		1,049,092

(4) Interim consolidated statement of cash flows			(Millions of yen)
	For the six months ended September 30, 2024		For the six months ended September 30, 2025
Cash flows from operating activities
Profit before income taxes	108,932		95,167
Depreciation and amortization	32,302		34,481
Impairment losses	193		2,153
Increase (decrease) in defined benefit liabilities	713		512
Decrease (increase) in trade and other receivables	(18,524)		(22,222)
Decrease (increase) in inventories	(9,557)		(6,353)
Increase (decrease) in trade and other payables	11,836		12,479
Increase (decrease) in advances received	1,096		(166)
Interest and dividend income	1,449		1,483
Interest expenses paid	(407)		(538)
Income taxes (paid) refunded	(15,815)		(31,734)
Others	(5,727)		(10,258)
Net cash provided by (used in) operating activities	106,490		75,003

Cash flows from investing activities

Purchase of property, plant and equipment and intangible assets

(56,787) (51,088)

Proceeds from sale of property, plant and equipment and intangible assets Decrease (increase) in time deposits	85 (3,877)		630 (3,550)
Purchase of investment securities	(498)		(2,353)
Purchase of shares of subsidiaries and affiliates	(6,256)		-
Others	5		13
Net cash provided by (used in) investing activities	(67,328)		(56,348)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	51		59
Repayment of lease liabilities	(3,207)		(3,330)
Decrease (increase) in treasury shares	(15,016)		(60,287)
Cash dividends paid	(18,388)		(19,458)
Others	(80)		(15)
Net cash provided by (used in) financing activities	(36,640)		(83,031)
Effect of exchange rate changes on cash and cash equivalents	(4,492)		4,217
Net increase (decrease) in cash and cash equivalents	(1,970)		(60,158)
Cash and cash equivalents at the beginning of the period	342,269		363,344
Cash and cash equivalents at the end of the period	340,298		303,185

(5) Notes on interim consolidated financial statements

(Notes on going concern assumption) Not applicable.

(Notes on interim consolidated financial statements)

1. Reporting entity

   Nitto Denko Corporation (the "Company") is a corporation domiciled in Japan. The interim consolidated financial statements above comprise the Company and its subsidiaries (the "Group") and the Group's affiliates. The Group is engaged mainly in the "Industrial Tape business," the "Optronics business," the "Human Life business," and "Others" (related businesses with a broad range of products). See "Segment information," for details.

2. Basis of preparation

   1. Accounting standards compliance

      The Group's interim consolidated financial statements, which meet the requirements of a "specified company complying with any designated international accounting standards" defined in Article 1-2 of the Regulation on Consolidated Financial Statements, have been prepared in accordance with IAS 34 as prescribed in Article 312 of the Regulation on Consolidated Financial Statements. The interim consolidated financial statements should be read in conjunction with the Group's consolidated financial statements for the fiscal year ended March 31, 2025, since the interim consolidated financial statements do not include all the information required in the annual consolidated financial statements.

   2. Presentation currency and units

      The interim consolidated financial statements are presented in Japanese yen and figures less than a million yen are rounded down to the nearest million yen.

   3. Significant accounting estimates and judgments

      When preparing the interim consolidated financial statements, management makes judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may vary from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis, and the effect of revised accounting estimates is recognized in the current and future accounting periods.

      The interim consolidated financial statements are prepared based on the same judgments, estimations and assumptions as those applied and described in the Group's consolidated financial statements for the fiscal year ended March 31, 2025.

   4. Approval of the interim consolidated financial statements

      The interim consolidated financial statements were approved by Hideo Takasaki, President, and Yasuhiro Iseyama, CFO on October 27, 2025.

3. Material accounting policies

Material accounting policies implemented in the interim consolidated financial statements are the same as the accounting policies implemented in the Group's consolidated financial statements for the fiscal year ended March 31, 2025.

(Additional information) (Cancellation of treasury shares)

The Company resolved at the Board of Directors meeting held on September 25, 2025, to cancel a part of its treasury shares, in accordance with the basic policy on the holding and cancellation of its treasury shares, pursuant to the provisions of Article 178 of the Japanese Companies Act, as follows.

1. Details on the cancellation of the treasury shares

   1. Class of shares to be cancelled: Common shares of the Company

   2. Number of shares to be cancelled: 28,101,050 shares

      (Ratio to the number of issued shares before cancellation: 3.98%)

   3. Cancellation date: October 15, 2025

2. Basic Policy on the Holding and Cancellation of Treasury Shares

The number of treasury shares held by the Company increased due to the repurchase under the provisions of the Article 165 of the Japanese Companies Act conducted from February to August 2025. Therefore, we will cancel a part of the treasury shares based on our basic policy regarding holding and cancellation of treasury shares: "The Company's treasury shares that have been repurchased will continue to be held on the condition that their specific uses have been clearly defined (e.g., remuneration for Directors), and cancellation will be considered for any shares exceeding the required amount."

(Segment information)

1. Outline of reportable segments

   Reportable segments of the Group are determined as segments whose separate financial information is available among the constituent units of the Group and which are regularly used by the Board of Directors, the chief operating decision maker, to determine the allocation of management resources and to evaluate their business results.

   The Group has divisions by product, and each division develops comprehensive domestic and overseas strategies for its products and conducts business activities.

   The Group's segments are based on three product divisions, and its three reportable segments are the Industrial Tape segment the Optronics segment and the Human Life segment. Each reportable segment is grouped into one operating segment based on similarities in products, markets, and other aspects.

   Operating segment	Major products or business
   Industrial Tape	Functional Base Products (bonding and joining products, protective materials, processing materials, automotive products, etc.)
   Optronics	Information Fine Materials (optical films, etc.), Circuits Materials (CIS (Circuit Integrated Suspension), high-precision circuits, etc.)
   Human Life	Life Science (oligonucleotide contract manufacturing business, nucleic acid synthesis materials, nucleic acid drug discovery, medical products, etc.), Membrane (high-polymer separation membrane), Personal Care Materials (functional film for hygienic materials, etc.)
   Others	New Business, Other Products

   Intersegment revenue is based on prevailing market prices. Major products for each segment

2. Information regarding revenue, profit or loss by segments

   Segment information regarding the Group's reportable segments is as follows.

   For the six months ended September 30, 2024

   Reportable segments

   Industrial Optronics Human Life Total Tape

   (Millions of yen)

   Figures in Others Total Adjustment consolidated

   statement of

   profit or loss

   Revenue from external	175,100	283,956	61,979	521,037	1	521,038	684	521,723
   customers Intersegment revenue	1,600	2,261	3,417	7,278	-	7,278	(7,278)	-
   Total segment revenue	176,701	286,217	65,397	528,316	1	528,317	(6,594)	521,723
   Operating profit (loss)	25,275	96,136	(4,482)	116,930	(3,587)	113,342	(4,075)	109,267
   Finance income								1,482
   Finance expenses Share of profit of investments accounted for								(1,709) (107)
   using the equity method
   Profit before income taxes								108,932

   (Note) 1. Others is an operating segment that is not included in the reportable segments and consists of New Business.

   1. Adjustment of operating profit (loss) amounted to (4,075) million yen includes other incomes (losses) not allocated to each operating segment.

   2. As a result of changes in the management structure for the six months ended September 30, 2025, some changes have been made to reporting segments. Such changes have been reflected in the figures for the six months ended September 30, 2024.

For the six months ended September 30, 2025

	Industrial Optronics Tape		Human Life	Total	Others	Total	Adjustment	consolidated statement of profit or loss
Revenue from external customers	178,188 268,191		66,519	512,898	8	512,907	662	513,569
Intersegment revenue	1,001 1,668		3,100	5,770	-	5,770	(5,770)	-
Total segment revenue	179,189 269,859		69,619	518,669	8	518,677	(5,107)	513,569
Operating profit (loss)	23,683	77,086	(1,598)	99,171	(3,490)	95,681	(1,176)	94,504
Finance income								1,583
Finance expenses Share of profit of investments accounted for								(994) 74
using the equity method
Profit before income taxes								95,167

Reportable segments

(Millions of yen)

Figures in

(Note) 1. Others is an operating segment that is not included in the reportable segments and consists of New Business.

2. Adjustment of operating profit (loss) amounted to (1,176) million yen includes other incomes (losses) not allocated to each operating segment.

(Notes on dividends)

For the six months ended September 30, 2024

1. Dividend payments

   Resolution	Type of shares	Cash dividends (Millions of yen)	Dividends per share (Yen)	Record date	Effective date	Source of dividends
   June 21, 2024 Ordinary General Meeting of Shareholders	Common stock	18,388	130	March 31, 2024	June 24, 2024	Retained earnings

2. Of the dividends for which the record date falls during the first half of the current fiscal year, items for which the effective date is after the end of the first half of the current fiscal year

Resolution	Type of shares	Cash dividends (Millions of yen)	Dividends per share (Yen)	Record date	Effective date	Source of dividends
October 28, 2024 Board of Directors Meeting	Common stock	19,651	140	September 30, 2024	November 29, 2024	Retained earnings

For the six months ended September 30, 2025

1. Dividend payments

   Resolution	Type of shares	Cash dividends (Millions of yen)	Dividends per share (Yen)	Record date	Effective date	Source of dividends
   June 20, 2025 Ordinary General Meeting of Shareholders	Common stock	19,458	28	March 31, 2025	June 23, 2025	Retained earnings

2. Of the dividends for which the record date falls during the first half of the current fiscal year, items for which the effective date is after the end of the first half of the current fiscal year

Resolution	Type of shares	Cash dividends (Millions of yen)	Dividends per share (Yen)	Record date	Effective date	Source of dividends
October 27, 2025 Board of Directors Meeting	Common stock	20,209	30	September 30, 2025	November 28, 2025	Retained earnings

(Note) The Company has implemented the stock split with an effective date of October 1, 2024 and a record date of September 30, 2024. Each share of common stock has been split into five shares. The above dividends per share as of a record date before September 30, 2024 is based on the actual amount of dividends before the stock split.

(Equity and other equity items) (Repurchase of treasury shares)

Pursuant to the resolution at the Board of Directors meeting on January 27, 2025, the Company has acquired its treasury shares.

According to this repurchase, treasury shares increased by 21,427 thousand and 60,287 million yen in the first half of the fiscal year ending March 31, 2026.

(Disposal of treasury shares)

Pursuant to the resolution at the Board of Directors meeting on June 20, 2025, the Company has disposed of its treasury shares as restricted share remuneration and performance-linked share-based remuneration on July 10, 2025. According to this disposal, treasury shares decreased by 152 thousand and 402 million yen in the first half of the fiscal year ending March 31, 2026.

(Revenue)

As described in (Segment information), the Group has three reportable segments which are the Industrial Tape segment, the Optronics segment and the Human Life segment. The relationship between the disaggregated revenues and the revenues from external customers in each reportable segment is as follows.

For the six months ended September 30, 2024

(Millions of yen)

Segment name		Major products or business		Japan		Americas		Europe		Asia/ Oceania		Total
Industrial Tape		Functional Base Products		52,603		17,287		17,698		87,510		175,100
		Information Fine Materials		14,046		-		-		198,486		212,532
Optronics		Circuits Materials		32,223		-		-		39,200		71,423
		Total		46,269		-		-		237,687		283,956
Life Science				1,994		16,621		4		0		18,620
Membrane Human Life Personal Care Materials				1,357 -		8,438 1,925		2,571 24,642		4,210 212		16,578 26,780
Total				3,352		26,985		27,218		4,423		61,979
Others		New Business, Other Products		-		1		-		-		1
Adjustment				674		9		-		-		684
		Total		102,899		44,284		44,917		329,621		521,723

As a result of changes in the management structure for the six months ended September 30, 2025, some changes have been made to reporting segments. Such changes have been reflected in the figures for the six months ended September 30, 2024.

Revenue by region is based on the location of each base, and the main countries and regions included in the classification other than Japan are as follows.

Americas: United States, Mexico, Brazil

Europe: Belgium, France, Germany, Sweden, Turkey

Asia/Oceania: China, Korea, Taiwan, Singapore, Malaysia, Hong Kong, Thailand, Vietnam

For the six months ended September 30, 2025

(Millions of yen)

Segment name		Major products or business		Japan		Americas		Europe		Asia/ Oceania		Total
Industrial Tape		Functional Base Products		51,937		16,330		19,026		90,893		178,188
		Information Fine Materials		7,542		-		-		191,812		199,354
Optronics		Circuits Materials		20,490		-		-		48,346		68,836
		Total		28,033		-		-		240,158		268,191
Life Science				2,175		20,507		-		0		22,683
Membrane Human Life Personal Care Materials				1,472 -		7,254 1,967		2,551 25,621		4,715 251		15,994 27,841
Total				3,648		29,730		28,173		4,967		66,519
Others		New Business, Other Products		-		8		-		-		8
Adjustment				662		-		-		-		662
		Total		84,281		46,068		47,199		336,019		513,569

Revenue by region is based on the location of each base, and the main countries and regions included in the classification other than Japan are as follows.

Americas: United States, Mexico, Brazil

Europe: Belgium, France, Germany, Sweden, Turkey

Asia/Oceania: China, Korea, Taiwan, Singapore, Malaysia, Hong Kong, Thailand, Vietnam

(Per share information)

Basic earnings per share, diluted earnings per share and basis for calculations are as follows.

For the six months ended September 30, 2024

For the six months ended September 30, 2025

1. Basic earnings per share 113.92 yen 101.32 yen Basis for calculation

   Net profit attributable to owners

   of the parent company (Millions of yen)

   Average number of common shares (Thousands of shares)

   79,975 68,926

   702,006 680,298

2. Diluted earnings per share 113.88 yen 101.28 yen Basis for calculation

Increase in the number of

common stock upon exercise of the stock options	250 250
(Thousands of shares)
Increase in the number of
common stock upon
Performance-linked share-based	-	24
remuneration plan
(Thousands of shares)

(Note) The Company has implemented the stock split with an effective date of October 1, 2024 and a record date of September 30, 2024. Each share of common stock has been split into five shares. The above basic and diluted earnings per share for the six months ended September 30, 2024 and 2025 are based on the assumption that the stock split is conducted at the beginning of the fiscal year ended March 31, 2025.

(Significant subsequent events) Not applicable.