Artience : Consolidated Quarterly Financial Results (Japanese Accounting Standards) for the First Quarter of the Fiscal Year Ending December 31, 2026

May 15, 2026

Name of Listed Company: artience Co., Ltd. Listings: Tokyo Stock Exchange

Code: 4634 URL: https://www.artiencegroup.com Representative: Satoru Takashima, President and Representative Director, Group CEO

Contact: Takeshi Arimura, Managing Operating Officer in charge of Finance & Accounting, IR and Information System Tel: +81-3-3272-6002

Scheduled date of commencement of dividend payments: -

Supplementary documents for financial results: Yes

Financial results briefing: Yes (for institutional investors and securities analysts)

(Amounts of less than million yen are omitted)

1. Consolidated business results for the first quarter of fiscal year ending December 31, 2026 (From January 1, 2026 to March 31, 2026)

   1. Business results (cumulative totals) (Percentages indicate year-on-year changes)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      First Quarter, Fiscal 2026	88,325	7.5	5,200	16.1	6,115	45.4	6,572	123.0
      First Quarter, Fiscal 2025	82,133	0.5	4,479	2.9	4,205	-15.6	2,946	-28.0

      (Note) Comprehensive income: First Quarter, Fiscal 2026: 4,196 million yen (－%) First Quarter, Fiscal 2025: -6,355 million yen (－%)

      	Profit per share (Basic)	Profit per share (Diluted)
      	Yen	Yen
      First Quarter, Fiscal 2026	139.89	139.88
      First Quarter, Fiscal 2025	58.50	58.48

   2. Financial position

   	Total assets	Net assets	Capital Adequacy Ratio
   	Million yen	Million yen	%
   First Quarter, Fiscal 2026	451,003	276,835	58.8
   Fiscal 2025	462,600	277,220	57.5

   (Note) Shareholders' equity: First Quarter, Fiscal 2026: 265,320 million yen Fiscal 2025: 266,021 million yen

2. Dividends

   	Dividends per share
   	End of Q1	End of Q2	End of Q3	Year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal 2025	-	50.00	-	50.00	100.00
   Fiscal 2026	-
   Fiscal 2026 (Forecast)		60.00	-	60.00	120.00

   (Note) Revisions to the most recently announced dividend forecasts: None

3. Forecasts for the year ending December 31, 2026 (from January 1, 2026 to December 31, 2026)

(Percentages indicate year-on-year changes)

(Note) Revisions to the most recently announced earnings forecasts: None

* Notes:

1. Important changes of subsidiaries during the term: No

2. Application of special accounting treatment to the preparation of quarterly consolidated financial statements: No

3. Changes in accounting policies and changes or restatement of accounting estimates

   1. Changes in accounting policies due to the amendments to accounting standards: No

   2. Changes in accounting policies other than (i): No

   3. Changes in accounting estimates: No

   4. Restatement: No

4. Numbers of shares issued (ordinary shares)

   1. Numbers of shares issued at the end of the terms (including treasury shares): First Quarter, Fiscal 2026: 50,286,544 shares

      Fiscal 2025: 50,286,544 shares

   2. Number of treasury shares at the end of the terms:

      First Quarter, Fiscal 2026: 3,404,903 shares

      Fiscal 2025: 2,862,378 shares

   3. Average numbers of shares issued during the terms (consolidated cumulative periods):

First Quarter, Fiscal 2026: 46,983,385 shares

First Quarter, Fiscal 2025: 50,374,002 shares

• Review of the attached consolidated quarterly financial statements by certified public accountants or audit firms: Yes (voluntary)

• Explanations about the proper use of financial forecasts and other important notes

1. The earnings forecasts and other forward-looking statements in this document are based on the information available to the Company at the time of its announcement and on certain assumptions deemed to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Actual results may differ significantly due to various factors. Please refer to "(3) Information on the consolidated earnings forecasts and other future forecasts" of "1. Qualitative Information on Financial Results, etc. for the First Quarter Ended March 31, 2026" on page 3 of the attached materials for the assumptions underlying the earnings forecasts and precautions regarding the use thereof.

2. Supplementary documents for financial results will be posted on the Company's website on May 15, 2026 (Friday).

3. The Company will hold a financial results briefing for institutional investors and securities analysts on May 22, 2026 (Friday). Reference materials for financial results and forecasts used in the briefing will be posted on the Company's website before the opening of the briefing.

Accompanying Materials - Contents

1. Qualitative Information on Financial Results, etc. for the First Quarter Ended March 31, 2026 2

   1. Details of operating results 2

   2. Details of financial position 3

   3. Information on the consolidated earnings forecasts and other future forecasts 3

2. Consolidated Financial Statements and Primary Notes 5

   1. Consolidated balance sheet 5

   2. Consolidated statements of income and consolidated statements of comprehensive income 7

   3. Notes to consolidated quarterly financial statements 9

(Basic and important matters in preparing the quarterly consolidated financial statements) 9

(Notes on assumption of going concern) 9

(Notes on significant changes in the amount of shareholders' equity) 9

(Notes on statement of cash flows) 9

(Segment information, etc.) 10

1. ‌Qualitative Information on Financial Results, etc. for the First Quarter Ended March 31, 2026

   1. ‌Details of operating results

      During the first quarter of the fiscal year under review, the global economy improved moderately, but uncertainty rapidly increased due to dramatic changes in the Middle East situation. The artience Group also experienced a worsening environment for sourcing petroleum-based raw materials and the resultant increase in the prices of some raw materials. However, this impact was limited in the first quarter under review. On the other hand, anticipating supply shortages, some customers front-loaded orders for some products using solvents or naphtha-based raw materials, which contributed to the increase in net sales.

      In this environment, the Group worked to execute its policies for the fiscal year: transformation of existing business groups into highly profitable ones, creation of strategic, high priority business groups, and transformation of the management foundation. At the same time, the Group endeavored to grasp the impact of changes in the business environment in each region and also prepared measures to cope with these changes.

      As a result, net sales and profits for the Group both increased in the first quarter of the fiscal year under review with net sales of 88,325 million yen (up 7.5% year on year), operating profit of 5,200 million yen (up 16.1% year on year), ordinary profit of 6,115 million yen (up 45.4% year on year) and profit attributable to owners of parent of 6,572 million yen (up 123.0% year on year).

      Operating results by segment are as follows.

      1. Colorants and Functional Materials Related Business

         Among the materials for LCD color filters, sales of materials for large panels remained strong in China, mainly due to demand related to events including the FIFA World Cup and the effects of government subsidies. Sales of optical semiconductor materials remained strong due to the wider use of materials for CMOS image sensors etc. by customers.

         There was strong demand for plastic colorants for daily goods and containers in Japan. Additionally, some products developed internally began to produce results, and price revisions have proved effective, resulting in strong sales. Overseas, sales of plastic colorants for solar cells and automotive applications were weak.

         The sales volume of lithium-ion battery materials for automotive applications increased in Europe, but not enough to cover expenses. The Group continued to develop new customers and next-generation products.

         Sales of inkjet inks were strong overseas but weak in Japan, mainly due to inventory adjustments by customers.

         As a result, net sales and operating profit for this segment as a whole both increased with net sales of 19,957 million yen (up 0.9% year on year) and operating profit of 628 million yen (up 26.9% year on year).

      2. Polymers and Coatings Related Business

         In functional films and tapes, functional films including conductive adhesive sheets sold well for usage in smartphones. On the other hand, semiconductor-related materials were affected by inventory adjustments by customers.

         In pressure sensitive adhesives, products for industrial materials remained solid in Japan and products for displays continued to perform strongly in China and South Korea. In adhesives, products for packaging performed strongly in Japan and overseas, and sales expansion of environmentally friendly products also made progress. Products for industrial applications were sold well for usage in lithium-ion batteries.

         Sales of can coatings were sluggish in Japan due to a market downturn. Overseas, sales of can coatings for processed food and beverage cans remained strong, mainly in Thailand.

         As a result, net sales and operating profit for this segment as a whole both increased with net sales of 22,441 million yen (up 5.8% year on year) and operating profit of 2,006 million yen (up 25.8% year on year).

      3. Packaging Materials Related Business

         In Japan, demand for liquid inks for frozen food and refill packaging remained firm. There was also progress in sales expansion of environmentally friendly products. Products for cardboard boxes also remained solid.

         Overseas, sales in Southeast Asia and China were strong, and there was progress in sales expansion in India. There was also progress in sales expansion targeting new customers and surrounding countries in Turkey.

         In the gravure cylinder platemaking business, sales were firm due to new demand for printing plates for packaging being captured and demand for precision platemaking related to electronics recovering.

         As a result, net sales and operating profit for this segment as a whole both increased with net sales of 23,791 million yen (up 10.3% year on year) and operating profit of 1,333 million yen (up 14.9% year on year).

      4. Printing and Information Related Business

         In Japan, the structural contraction of the information-related printing market continued, and the Group continued to improve business efficiency and revise prices. Sales of offset inks remained firm. For UV curable inks, the Group expanded sales of functional coatings or energy-saving inks.

         In overseas markets, performance was weak in Europe due to the stagnation of the information-related printing market and increased competition, but there was progress in sales expansion of functional inks in China and North America.

         As a result, net sales and operating profit for this segment as a whole both increased with net sales of 21,512 million yen (up 11.4% year on year) and operating profit of 1,175 million yen (up 16.6% year on year).

      5. Other

         This Other segment includes businesses not included in the above segments, services provided by artience as the holding company etc. In the first quarter of the fiscal year under review, sales increased but profit decreased with net sales of 1,680 million yen (up 34.5% year on year) and operating profit of 46 million yen (down 77.9% year on year).

   2. ‌Details of financial position

      Total assets at the end of the first quarter under review stood at 451,003 million yen, down 11,596 million yen from the end of the previous consolidated fiscal year. Liabilities were 174,168 million yen, down 11,211 million yen from the end of the previous consolidated fiscal year. Net assets came to 276,835 million yen, down 385 million yen from the end of the previous consolidated fiscal year.

      Cash and deposits decreased mainly due to the purchase of treasury shares and the payment of income taxes and dividends. The decrease also reflects decrease in notes and accounts payable - trade as payments of certain portion of accounts payable - trade were made in this first quarter under review due to the last day of the previous fiscal year being a bank holiday. Investment securities, deferred tax liabilities, and valuation difference on available-for-sale securities decreased, reflecting the sale of part of shares held and decrease in fair value of shares held. Additionally, some long-term loans payable were restated as short-term loans payable because they will mature within a year.

   3. ‌Information on the consolidated earnings forecasts and other future forecasts

   At present, the instability of the Middle East situation is having a significant impact on the Group's business environment globally. Many of the Group's major products use solvents, resins and other raw materials that are derived from crude oil or naphtha. Due to the disruption of logistics and the increase in energy prices, the supply of these raw materials has been restricted by their manufacturers and the prices are soaring.

   The Group prioritizes the continued stable supply of our products and is taking optimal measures to address the current circumstances such as securing raw materials or procuring them from alternative sources. The Group is also revising the prices of products in response to the surge in raw material prices.

   The future of the Middle East situation remains uncertain, but the Group has not changed its full-year consolidated business forecasts for the year ending December 31, 2026, announced on February 13, 2026, in light of its estimates based on the information obtained to date, including information about the increase of raw materials prices, the revision of product prices, and the current economic situation. The Group will immediately disclose any revisions to its forecasts if deemed necessary in light of changing business environment including raw material procurement situation.

2. ‌Consolidated Financial Statements and Primary Notes

1. ‌Consolidated balance sheet

   (Million yen)

   As of December 31, 2025		As of March 31, 2026
   (Assets)
   Current assets
   Cash and deposits	47,625	42,142
   Notes and accounts receivable - trade	106,769	105,418
   Securities	291	146
   Merchandise and finished goods	40,377	40,865
   Work in process	599	1,225
   Raw materials and supplies	27,675	28,949
   Other	5,681	5,519
   Allowance for doubtful accounts	-1,347	-1,395
   Total current assets	227,672	222,870
   Non-current assets
   Property, plant and equipment
   Buildings and structures	133,334	135,479
   Accumulated depreciation	-83,133	-84,457
   Buildings and structures, net	50,200	51,022
   Machinery, equipment and vehicles	197,682	200,418
   Accumulated depreciation	-157,033	-158,703
   Machinery, equipment and vehicles, net	40,649	41,715
   Tools, furniture and fixtures	30,664	31,189
   Accumulated depreciation	-24,867	-25,169
   Tools, furniture and fixtures, net	5,796	6,019
   Land	31,311	31,394
   Leased assets	9,153	9,162
   Accumulated depreciation	-3,378	-3,438
   Leased assets, net	5,774	5,723
   Construction in progress	14,192	13,987
   Total property, plant and equipment	147,926	149,863
   Intangible assets	6,028	5,966
   Investments and other assets
   Investment securities	61,997	54,193
   Retirement benefit asset	11,461	11,491
   Deferred tax assets	5,019	4,499
   Other	2,859	2,484
   Allowance for doubtful accounts	-365	-365
   Total investments and other assets	80,972	72,303
   Total non-current assets	234,927	228,133
   Total assets	462,600	451,003

   (Million yen)

   As of December 31, 2025		As of March 31, 2026
   (Liabilities)
   Current liabilities
   Notes and accounts payable - trade	67,913	58,359
   Short-term loans payable	14,336	20,287
   Income taxes payable	2,983	3,574
   Other	20,837	20,072
   Total current liabilities	106,070	102,293
   Non-current liabilities
   Bonds payable	15,000	15,000
   Long-term loans payable	34,100	28,100
   Deferred tax liabilities	17,066	14,341
   Provision for environmental measures	79	79
   Retirement benefit liability	3,747	3,708
   Asset retirement obligations	35	36
   Other	9,279	10,609
   Total non-current liabilities	79,309	71,874
   Total liabilities	185,379	174,168
   (Net assets)
   Shareholders' equity
   Capital stock	31,733	31,733
   Capital surplus	32,513	32,513
   Retained earnings	155,804	160,006
   Treasury shares	-9,049	-11,103
   Total shareholders' equity	211,002	213,148
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	24,483	19,773
   Foreign currency translation adjustment	29,516	31,468
   Remeasurements of defined benefit plans	1,020	929
   Total accumulated other comprehensive income	55,019	52,171
   Subscription rights to shares	8	8
   Non-controlling interests	11,189	11,506
   Total net assets	277,220	276,835
   Total liabilities and net assets	462,600	451,003

2. ‌Consolidated statements of income and consolidated statements of comprehensive income

   Consolidated statements of income

   Consolidated first quarter (Million yen)

   From January 1, 2025 to March 31, 2025		From January 1, 2026 to March 31, 2026
   Net sales	82,133	88,325
   Cost of sales	64,478	68,592
   Gross profit	17,655	19,733
   Selling, general and administrative expenses
   Packing and transportation costs	1,991	2,142
   Salaries and allowances	3,391	3,788
   Bonuses	720	738
   Welfare expenses	853	912
   Depreciation	499	590
   Research and development expenses	1,053	1,175
   Other	4,665	5,184
   Total selling, general and administrative expenses	13,176	14,532
   Operating profit	4,479	5,200
   Non-operating income
   Interest income	102	116
   Dividend income	27	29
   Share of profit of entities accounted for using equity method	20	6
   Foreign exchange gains	-	120
   Gain on net monetary position	1,453	913
   Other	171	182
   Total non-operating income	1,776	1,370
   Non-operating expenses
   Interest expenses	475	226
   Foreign exchange losses	1,298	-
   Other	275	229
   Total non-operating expenses	2,050	455
   Ordinary profit	4,205	6,115
   Extraordinary profit
   Gain on sales of non-current assets	3	14
   Gain on sales of investment securities	32	3,556
   Other	5	-
   Total extraordinary profit	40	3,571
   Extraordinary losses
   Loss on sales and retirement of non-current assets	65	63
   Business restructuring expenses	83	48
   Total extraordinary loss	149	112
   Profit before income taxes	4,097	9,574
   Income taxes - current	1,069	2,858
   Income taxes - deferred	40	34
   Total income taxes	1,109	2,892
   Profit	2,988	6,681
   Profit attributable to non-controlling interests	41	109
   Profit attributable to owners of parent	2,946	6,572

   Consolidated statements of comprehensive income

   Consolidated first quarter (Million yen)

   From January 1, 2025 to March 31, 2025		From January 1, 2026 to March 31, 2026
   Profit	2,988	6,681
   Other comprehensive income
   Valuation difference on available-for-sale securities	-1,689	-4,709
   Foreign currency translation adjustment	-7,499	2,334
   Remeasurements of defined benefit plans, net of tax	-101	-90
   Share of other comprehensive income of entities accounted for using equity method	-53	-19
   Total other comprehensive income	-9,343	-2,485
   Comprehensive income	-6,355	4,196
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	-5,804	3,724
   Comprehensive income attributable to non-controlling interests	-550	471

3. ‌Notes to consolidated quarterly financial statements

The quarterly consolidated financial statements have been prepared, conforming to the Tokyo Securities Exchange's General Principles for Preparing Quarterly Consolidated Financial Statements, Article 4 paragraph (i) and accounting standards for quarterly financial statements generally accepted in Japan (however, when matters stipulated under Article 4 paragraph (ii) apply, there is no need for adoption).

Not applicable.

The Company acquired 542,400 treasury shares in accordance with a resolution passed at the meeting of the Board of Directors held on May 9, 2025. As a result, treasury shares increased by 2,054 million yen during the first quarter under review, and treasury shares amounted to 11,103 million yen as of March 31, 2026.

Quarterly consolidated statements of cash flows for the first quarter under review have not been prepared. Depreciation (and amortization) figures relating to the first quarter under review (including amortization relating to intangible assets, but excluding goodwill) are as follows.

From January 1, 2025

to March 31, 2025

From January 1, 2026

to March 31, 2026

Depreciation 3,126 million yen 3,488 million yen

1. From January 1, 2025 to March 31, 2025

   Information on net sales and profits or losses by reportable segment

   (Million yen)

   	Reportable segments					Other (Note 1)	Total	Adjustment (Note 2)	Amount recorded in consolidated statements of income (Note 3)
   	Colorants and Functional Materials Related Business	Polymers and Coatings Related Business	Packaging Materials Related Business	Printing and Information Related Business	Total
   Net sales
   Sales to customers	19,267	21,134	21,329	19,295	81,027	1,106	82,133	-	82,133
   Intersegment sales	507	78	243	9	838	142	981	-981	-
   Total	19,775	21,213	21,573	19,304	81,866	1,248	83,115	-981	82,133
   Segment profits	495	1,595	1,161	1,008	4,260	211	4,471	7	4,479

   (Notes) 1. The "Other" segment comprises business segments that are not included in the reportable segments, which include sales of raw materials, other profit-earning business activities carried out by the Company as a parent, and delivery of services.

   1. An adjustment of 7 million yen in segment profits mainly represents the deduction of intersegment transactions.

   2. Segment profits have been adjusted with operating profit recorded in the consolidated quarterly income statement.

2. From January 1, 2026 to March 31, 2026

   Information on net sales and profits or losses by reportable segment

   (Million yen)

   	Reportable segments					Other (Note 1)	Total	Adjustment (Note 2)	Amount recorded in consolidated statements of income (Note 3)
   	Colorants and Functional Materials Related Business	Polymers and Coatings Related Business	Packaging Materials Related Business	Printing and Information Related Business	Total
   Net sales
   Sales to customers	19,289	22,379	23,620	21,509	86,799	1,526	88,325	-	88,325
   Intersegment sales	668	61	170	2	903	153	1,056	-1,056	-
   Total	19,957	22,441	23,791	21,512	87,702	1,680	89,382	-1,056	88,325
   Segment profits	628	2,006	1,333	1,175	5,144	46	5,191	9	5,200

   (Notes) 1. The "Other" segment comprises business segments that are not included in the reportable segments, which include sales of raw materials, other profit-earning business activities carried out by the Company as a parent, and delivery of services.

   1. An adjustment of 9 million yen in segment profits mainly represents the deduction of intersegment transactions.

   2. Segment profits have been adjusted with operating profit recorded in the consolidated quarterly income statement.