Artience : Consolidated Semi-annual Financial Results (Japanese Accounting Standards) for the First Half of the Fiscal Year Ending December 31, 2025

August 8, 2025

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, Operating Officer in charge of IR and General Manager of Finance & Accounting Dept.

Tel: +81-3-3272-6002

Scheduled date of submission of semi-annual report: August 8, 2025 Scheduled date of commencement of dividend payments: September 8, 2025 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 half of fiscal 2025 ending December 31, 2025 (From January 1, 2025 to June 30, 2025)

   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 half, Fiscal 2025	168,732	-2.0	9,373	-11.2	8,633	-30.2	5,474	-41.5
      First half, Fiscal 2024	172,257	12.1	10,551	122.1	12,361	130.5	9,356	143.5

      	Profit per share (Basic)	Profit per share (Diluted)
      	Yen	Yen
      First half, Fiscal 2025	109.43	109.40
      First half, Fiscal 2024	176.44	176.37

      (Note) Comprehensive income: First half, fiscal 2025: -4,556 million yen (－%) First half, fiscal 2024: 27,994 million yen (39.1%)

   2. Financial position

   	Total assets	Net assets	Net worth/Total assets
   	Million yen	Million yen	%
   First half, Fiscal 2025	444,973	262,472	56.6
   Fiscal 2024	472,787	273,754	55.4

   (Note) Net worth: First half, fiscal 2025: 251,681 million yen Fiscal 2024: 262,113 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 2024	-	50.00	-	50.00	100.00
   Fiscal 2025	-	50.00
   Fiscal 2025 (Forecast)			-	50.00	100.00

   (Note) Revisions to the most recently announced dividend forecasts: No

3. Forecasts for the year ending December 31, 2025 (from January 1, 2025 to December 31, 2025)

(Figures in percentages denote the year-on-year change.)

(Note) Revisions to the most recently announced earnings forecasts: Yes

* Notes:

1. Important changes in the scope of consolidation during the term: No

2. Application of special accounting treatment to the preparation of semi-annual consolidated financial statements: No

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

   1. Changes in accounting policies due to the modification in accounting methods: Yes

   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 half, fiscal 2025: 50,286,544 shares

      Fiscal 2024: 53,286,544 shares

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

      First half, fiscal 2025: 900,647 shares

      Fiscal 2024: 2,537,112 shares

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

First half, fiscal 2025: 50,028,835 shares

First half, fiscal 2024: 53,028,863 shares

• These semi-annual financial results are not subject to audits by certified public accountants or audit corporations.

• 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 Half Ended June 30, 2025" on page 4 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 August 8, 2025(Friday).

3. The Company will hold a financial results briefing for investors as follows. 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.

- August 19, 2025 (Tuesday): Briefing for institutional investors and securities analysts.

Accompanying Materials - Contents

1. Qualitative Information on Financial Results, etc., for the First Half Ended June 30, 2025 2

   1. Details of operating results 2

   2. Details of financial position 3

   3. Information on the consolidated earnings forecasts and other future forecasts 4

2. Semi-annual Consolidated Financial Statements and Primary Notes 5

   1. Semi-annual consolidated balance sheet 5

   2. Semi-annual consolidated statements of income and semi-annual consolidated statements of comprehensive income 7

   3. Semi-annual consolidated statements of cash flows 9

   4. Notes on semi-annual consolidated financial statements 10

(Notes on assumption of going business) 10

(Changes in accounting policies) 10

(Notes on significant changes in the amount of shareholders' equity) 10

(Segment information, etc.) 11

(Important subsequent events) 12

1. ‌Qualitative Information on Financial Results, etc., for the First Half Ended June 30, 2025

   1. ‌Details of operating results

      In the first half of the consolidated fiscal year under review, the global economic recovery was modest, with notable weakness in some regions. The period was also marked by rush demand in anticipation of tariff hikes, a subsequent reactionary fall in demand, and the resultant uncertainty.

      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.

      As a result, net sales and profit in the first half of the fiscal year under review both decreased with net sales of 168,732 million yen (down 2.0% year on year), operating profit of 9,373 million yen (down 11.2% year on year), ordinary profit of 8,633 million yen (down 30.2% year on year) and profit attributable to owners of parent of 5,474 million yen (down 41.5% year on year).

      Operating results by segment are as follows.

      1. Colorants and Functional Materials Related Business

         Shipments of materials for LCD color filters increased in China due to the effect of government subsidies for products for large panels and rush demand in anticipation of tariff hikes. In Taiwan, however, shipments of materials for small and midsize panels used in applications such as personal computers remained weak, and the withdrawal of a domestic panel manufacturer also had an impact. Sales of optical semiconductor materials for smartphones in China expanded.

         The profitability of plastic colorants improved on the solid performance of products for beverage caps in Japan as well as the effects of cost cutting and price revisions. Overseas, plastic colorants for solar cells, which were strong in the previous fiscal year, saw sluggish growth, and products for automotive applications were also weaker.

         Sales of lithium-ion battery materials for automotive applications were lackluster, reflecting the continued slowdown in growth on the EV market; however, the Company continued to make progress with customer development and next-generation product development. For inkjet inks, collaborations with customers were strengthened while competition intensified.

         As a result, net sales and operating profit for this segment as a whole both decreased with net sales of 41,363 million yen (down 5.6% year on year) and operating profit of 812 million yen (down 62.5% year on year).

      2. Polymers and Coatings Related Business

         Among functional films and tapes, sales of functional films, including conductive adhesive sheets, remained strong due to an increase in sales for new smartphone models and expansion of sales in China. In addition, the area of semiconductor-related materials saw an increase in results yielded by developed products.

         In Japan, sales of pressure sensitive adhesives for automotive and other industrial applications were strong. Overseas, sales of pressure sensitive adhesives were brisk in China, where the Company tapped into growth in demand for products for displays, and in India, where sales were on the rise. Among adhesives, sales of products for packaging were strong in Japan and overseas. However, they were affected by a decrease in customers' operations in some regions, and among adhesives for industrial use, sales of products for lithium-ion batteries were sluggish.

         In Japan, sales of can coatings remained strong even after the rush demand in anticipation of the price increase of liquors and saw positive growth, partly reflecting expansion of sales. Overseas, sales were also strong due to sales expansion of can coatings for beverage cans and increased demand for food cans, especially in Thailand.

         As a result, net sales and operating profit for this segment as a whole both increased with net sales of 43,830 million yen (up 2.8% year on year) and operating profit of 3,665 million yen (up 5.3% year on year).

      3. Packaging Materials Related Business

         In Japan, demand for liquid inks for packed rice, frozen food, and cut vegetables, among other applications, remained firm. In addition, among products for cardboard boxes, sales of those related to fruits and vegetables began to recover. In addition, net sales increased due in part to the effect of price revisions.

         Overseas, sales showed sluggish growth in China due to a decline in consumption, and shipments decreased in South Korea due to the impact of the more competitive environment. However, sales were solid in Southeast Asia and India, supported by market conditions. In Turkey, sales to new customers and surrounding countries increased due to the start of operation of a new plant, while depreciation cost also increased.

         In the gravure cylinder platemaking business, sales were strong due to the capturing of demand for new printing plates for packaging and the gradual recovery of precision platemaking related to electronics.

         In addition to the above, partly because the yen remained stronger against foreign currencies compared to the same period of the previous fiscal year, net sales and operating profit for this segment as a whole both decreased with net sales of 44,059 million yen (down 0.6% year on year) and operating profit of 2,485 million yen (down 0.7% year on year).

      4. Printing and Information Related Business

         While domestic sales of products for advertising and publishing remained sluggish due to the continued structural contraction of the information-related printing market, sales of functional coatings and functional inks such as energy-saving highly sensitive UV-curable inks expanded, reflecting progress on business portfolio reforms.

         In overseas markets, sales of products for publishing and newspapers were weak, especially in China and Europe, as a result of stagnation of the information-related printing market, and sales of products for paper packaging materials also showed slow growth in Southeast Asia and India.

         As a result, net sales and operating profit for this segment as a whole both decreased with net sales of 38,755 million yen (down 4.8% year on year) and operating profit of 2,062 million yen (down 16.9% year on year).

      5. Other

         This Other segment includes businesses not included in the above segments, services provided by artience as the holding company, and other businesses. In the first half of the fiscal year under review, sales declined but operating profit increased with net sales of 2,624 million yen (down 5.0% year on year) and operating profit of 326 million yen (operating loss of 62 million yen in the same period of the previous fiscal year).

   2. ‌Details of financial position

      Total assets at the end of the first half under review stood at 444,973 million yen, down 27,813 million yen from the end of the previous consolidated fiscal year. Liabilities were 182,501 million yen, down 16,531 million yen from the end of the previous consolidated fiscal year. Net assets came to 262,472 million yen, down 11,281 million yen from the end of the previous consolidated fiscal year.

      On the last day of the first half under review, the exchange rate changed in the direction of a stronger yen and weaker foreign currencies compared to the last day of the previous consolidated fiscal year. As a result, assets and liabilities held by overseas subsidiaries and foreign currency translation adjustments decreased. Furthermore, investment securities and valuation difference on available-for-sale securities each decreased, reflecting declining stock prices in Japan. In addition, cash and deposits decreased due to the purchase of treasury shares and the payment of income taxes and dividends. The Company issued the Third Series of Unsecured Bonds, and repaid some of its debt.

      (Status of cash flow)

      Cash and cash equivalents ("cash") at the end of the first half of the fiscal year under review was 47,531 million yen, a decrease of 12,520 million yen from the balance at the beginning of the fiscal year.

      Cash provided by operating activities was 9,644 million yen (down 5,501 million yen year on year). This mainly reflects an increase in cash, due in part to the posting of profit before income taxes and depreciation and a decrease in notes and accounts receivable - trade, as well as a decrease in cash that chiefly reflected a decrease in notes and accounts payable - trade and income taxes paid.

      Cash used in investing activities was 7,772 million yen (down 3,683 million yen year on year). Cash decreased mainly due to the purchase of property, plant and equipment.

      Cash used in financial activities was 12,829 million yen (up 9,946 million yen year on year). This primarily reflects an increase in cash, due in part to proceeds from the issuance of bonds and a decrease in cash associated with a decrease in short-term loans payable, expenditures for the repayment of long-term loans payable and purchase of treasury shares, and the payment of dividends.

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

   During the first half of the fiscal year under review, the business environment surrounding the Group saw continued stagnation in the growth of the EV market, which resulted in the weak performance of lithium-ion battery materials for automotive applications. However, the Company has continued to make progress with customer development and next-generation product development. Overall, the economic recovery has slowed, with stagnation evident in some regions. Other factors include rush demand in anticipation of tariff hikes, the impact of the reactionary fall in demand, and the resultant uncertainty. Consequently, net sales are expected to remain below the initial target.

   As a result, profit at each level is also expected to remain below the initial target. Accordingly, the Company decided to revise the full-year forecasts of consolidated financial results for the fiscal year ending December 31, 2025, which were announced on February 14, 2025, as follows.

   Forecasts for the year ending December 31, 2025 (From January 1, 2025 to December 31, 2025)

   	Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Profit per share (Basic)
   Previous forecast (A)	million yen 370,000	million yen 22,000	million yen 21,000	million yen 17,500	yen 352.06
   Revised forecast (B)	355,000	19,000	18,000	15,500	311.83
   Change (B-A)	-15,000	-3,000	-3,000	-2,000	-
   Increase/decrease (%)	-4.1	-13.6	-14.3	-11.4	-
   (Reference) Results of previous fiscal year (Fiscal year ended December 31, 2024)	351,064	20,414	21,008	18,540	352.53

2. ‌Semi-annual Consolidated Financial Statements and Primary Notes

1. ‌Semi-annual consolidated balance sheet

   (Million yen)

   As of December 31, 2024		As of June 30, 2025
   (Assets)
   Current assets
   Cash and deposits	62,855	50,441
   Notes and accounts receivable - trade	109,412	100,882
   Securities	99	180
   Merchandise and finished goods	39,004	38,175
   Work in process	622	1,046
   Raw materials and supplies	28,608	26,034
   Other	5,833	6,083
   Allowance for doubtful accounts	-1,154	-1,101
   Total current assets	245,282	221,743
   Non-current assets
   Property, plant and equipment
   Buildings and structures	124,648	128,829
   Accumulated depreciation	-78,813	-79,171
   Buildings and structures, net	45,834	49,657
   Machinery, equipment and vehicles	183,215	188,235
   Accumulated depreciation	-150,695	-150,504
   Machinery, equipment and vehicles, net	32,519	37,730
   Tools, furniture and fixtures	29,479	30,106
   Accumulated depreciation	-24,406	-24,380
   Tools, furniture and fixtures, net	5,072	5,726
   Land	31,084	30,959
   Leased assets	8,810	8,382
   Accumulated depreciation	-3,006	-3,165
   Leased assets, net	5,803	5,216
   Construction in progress	28,022	17,738
   Total property, plant and equipment	148,338	147,027
   Intangible assets	5,964	5,496
   Investments and other assets
   Investment securities	57,610	55,422
   Retirement benefit asset	9,427	9,598
   Deferred tax assets	4,828	4,177
   Other	1,673	1,800
   Allowance for doubtful accounts	-338	-292
   Total investments and other assets	73,202	70,705
   Total non-current assets	227,504	223,230
   Total assets	472,787	444,973

   (Million yen)

   As of December 31, 2024		As of June 30, 2025
   (Liabilities)
   Current liabilities
   Notes and accounts payable - trade	70,747	60,477
   Short-term loans payable	45,825	34,847
   Income taxes payable	2,972	2,409
   Other	19,923	21,703
   Total current liabilities	139,469	119,437
   Non-current liabilities
   Bonds payable	10,000	15,000
   Long-term loans payable	24,914	23,342
   Deferred tax liabilities	13,968	13,102
   Provision for environmental measures	80	80
   Retirement benefit liability	3,254	3,349
   Asset retirement obligations	35	35
   Other	7,310	8,153
   Total non-current liabilities	59,564	63,063
   Total liabilities	199,033	182,501
   (Net assets)
   Shareholders' equity
   Capital stock	31,733	31,733
   Capital surplus	32,466	32,513
   Retained earnings	159,807	153,410
   Treasury shares	-7,992	-2,759
   Total shareholders' equity	216,015	214,897
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	20,645	18,872
   Foreign currency translation adjustment	25,147	17,805
   Remeasurements of defined benefit plans	304	106
   Total accumulated other comprehensive income	46,097	36,784
   Subscription rights to shares	29	12
   Non-controlling interests	11,611	10,778
   Total net assets	273,754	262,472
   Total liabilities and net assets	472,787	444,973

2. ‌ Semi-annual consolidated statements of income and semi-annual consolidated statements of comprehensive income

   Semi-annual consolidated statements of income (Million yen)

   From January 1, 2024 to June 30, 2024		From January 1, 2025 to June 30, 2025
   Net sales	172,257	168,732
   Cost of sales	134,846	132,958
   Gross profit	37,411	35,774
   Selling, general and administrative expenses
   Packing and transportation costs	3,998	3,931
   Salaries and allowances	6,861	6,808
   Bonuses	1,309	1,376
   Welfare expenses	1,635	1,655
   Depreciation	981	1,014
   Research and development expenses	1,900	2,133
   Other	10,174	9,480
   Total selling, general and administrative expenses	26,859	26,400
   Operating profit	10,551	9,373
   Non-operating income
   Interest income	239	210
   Dividend income	685	739
   Share of profit of entities accounted for using equity method	-	35
   Foreign exchange gains	1,396	-
   Gain on net monetary position	985	1,707
   Other	370	300
   Total non-operating income	3,676	2,993
   Non-operating expenses
   Interest expenses	1,290	703
   Foreign exchange losses	-	2,497
   Share of loss of entities accounted for using equity method	13	-
   Other	563	532
   Total non-operating expenses	1,867	3,733
   Ordinary profit	12,361	8,633
   Extraordinary profit
   Gain on sales of non-current assets	11	10
   Gain on sales of investment securities	36	47
   Other	-	5
   Total extraordinary profit	48	63
   Extraordinary losses
   Loss on sales and retirement of non-current assets	174	227
   Loss on sales of shares of subsidiaries	85	-
   Extra retirement payments	116	-
   Business restructuring expenses	-	87
   Other	15	-
   Total extraordinary loss	392	314
   Profit before income taxes	12,016	8,382
   Income taxes - current	3,076	3,021
   Income taxes - deferred	-514	-224
   Total income taxes	2,562	2,797
   Profit	9,454	5,584
   Profit attributable to non-controlling interests	98	110
   Profit attributable to owners of parent	9,356	5,474

   Semi-annual consolidated statements of comprehensive income

   (Million yen)

   From January 1, 2024 to June 30, 2024		From January 1, 2025 to June 30, 2025
   Profit	9,454	5,584
   Other comprehensive income
   Valuation difference on available-for-sale securities	5,536	-1,772
   Foreign currency translation adjustment	12,995	-8,106
   Remeasurements of defined benefit plans, net of tax	-211	-198
   Share of other comprehensive income of entities accounted for using equity method	219	-64
   Total other comprehensive income	18,540	-10,141
   Comprehensive income	27,994	-4,556
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	26,780	-3,839
   Comprehensive income attributable to non-controlling interests	1,213	-717

3. ‌Semi-annual consolidated statements of cash flows

   (Million yen)

   From January 1, 2024 to June 30, 2024		From January 1, 2025 to June 30, 2025
   Cash flows from operating activities
   Profit before income taxes	12,016	8,382
   Depreciation	5,963	6,361
   Gain on net monetary position	-985	-1,707
   Interest and dividend income	-924	-949
   Interest expenses	1,290	703
   Share of (profit) loss of entities accounted for using equity method	13	-35
   Loss (gain) on sales of property, plant and equipment	-4	-2
   Loss on retirement of property, plant and equipment	34	66
   Loss (gain) on sales of investment securities	-36	-47
   Decrease (increase) in notes and accounts receivable - trade	-2,553	5,480
   Decrease (increase) in inventories	-1,412	652
   Increase (decrease) in notes and accounts payable - trade	706	-8,368
   Other	2,206	2,383
   Subtotal	16,315	12,918
   Interest and dividend income received	899	970
   Interest expenses paid	-1,206	-833
   Income taxes paid	-861	-3,411
   Net cash provided by (used in) operating activities	15,146	9,644
   Cash flows from investing activities
   Net decrease (increase) in time deposits	-1,098	-281
   Purchase of property, plant and equipment	-9,981	-6,895
   Proceeds from sales of property, plant and equipment	71	15
   Purchase of intangible assets	-401	-152
   Purchase of short-term and long-term investment securities	-39	-231
   Proceeds from sales and redemption of short-term and long-term investment securities	119	114
   Other	-124	-341
   Net cash provided by (used in) investing activities	-11,456	-7,772
   Cash flows from financing activities
   Net increase (decrease) in short-term loans payable	-779	-4,728
   Proceeds from long-term loans payable	12,435	300
   Repayments of long-term loans payable	-15,595	-7,358
   Proceeds from issuance of bonds	-	5,000
   Proceeds from agreement to set the right to demand earnings distribution	3,067	1,065
   Purchase of treasury shares	-3	-4,156
   Cash dividends paid	-2,384	-2,531
   Proceeds from share issuance to non-controlling shareholders	770	-
   Repayments of lease obligations	-291	-283
   Other	-101	-136
   Net cash provided by (used in) financing activities	-2,883	-12,829
   Effect of exchange rate change on cash and cash equivalents	2,514	-1,563
   Net increase (decrease) in cash and cash equivalents	3,320	-12,520
   Cash and cash equivalents at beginning of period	56,040	60,052
   Cash and cash equivalents at end of period	59,361	47,531

4. ‌Notes on semi-annual consolidated financial statements

Not applicable

(Application of the Accounting Standard for Current Income Taxes, etc.)

The Company has applied Accounting Standard for Current Income Taxes (Accounting Standards Board of Japan (ASBJ) Statement No. 27, October 28, 2022; hereinafter referred to as the "Revised Accounting Standard 2022") since the beginning of the first half of the current fiscal year.

The amendment to categories in which current income taxes should be recorded (taxes on other comprehensive income) follows the transitional treatment prescribed in the proviso of paragraph 20-3 of the Revised Accounting Standard 2022 and the transitional treatment prescribed in the proviso (2) of paragraph 65-2 of the Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022; hereinafter referred to as the "Revised Implementation Guidance 2022"). The application has no effect on semi-annual consolidated financial statements.

For the amendment related to the revised accounting treatment for consolidated financial statements when gains or losses on sale of shares in subsidiaries resulting from transactions between consolidated companies were deferred for tax purposes, the Revised Implementation Guidance 2022 has been applied since the beginning of the first half of the fiscal year under review.

The impact of this change is insignificant and it has not been applied retroactively.

(Application of the Practical Solution on the Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules, etc.)

The Practical Solution on the Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules (ASBJ PITF No. 46, March 22, 2024), etc. has been applied since the beginning of the first half of the consolidated fiscal year under review.

Since paragraph 7 of this practical solution has been applied, the Company did not record current taxes related to the Global Minimum Tax Rules in the consolidated financial statements for the first half.

(Purchase of treasury shares)

The Company acquired 829,600 treasury shares in accordance with a resolution passed at the meeting of the Board of Directors held on August 9, 2024. As a result, treasury shares increased by 2,501 million yen during the first half of the fiscal year under review.

The Company acquired 554,300 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 1,653 million yen during the first half of the fiscal year under review.

(Retirement of treasury shares)

On May 30, 2025, the Company retired 3,000,000 treasury shares in accordance with a resolution passed at the meeting of the Board of Directors held on May 9, 2025. As a result, retained earnings and treasury shares both decreased by 9,323 million yen respectively, in the first half of the fiscal year under review.

As a result, on June 30, 2025, the following were recorded: retained earnings at 153,410 million yen, and treasury shares at 2,759 million yen.

1. From January 1, 2024 to June 30, 2024

   Information on net sales and profits or losses by reported segment

   (Million yen)

   	Reported segments					Other (Note 1)	Total	Adjustment (Note 2)	Amount recorded in semi-annual 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	42,629	42,561	43,912	40,718	169,822	2,435	172,257	-	172,257
   Intersegment sales	1,165	70	428	12	1,677	327	2,004	-2,004	-
   Total	43,795	42,631	44,341	40,730	171,499	2,762	174,261	-2,004	172,257
   Segment profits and losses (-)	2,166	3,479	2,502	2,480	10,628	-62	10,565	-14	10,551

   (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 -14 million yen in segment profits and losses (-) mainly represents the deduction of intersegment transactions.

   2. Segment profits and losses (-) have been adjusted with operating profit recorded in the semi-annual consolidated statements of income.

2. From January 1, 2025 to June 30, 2025

   Information on net sales and profits or losses by reported segment

   (Million yen)

   	Reported segments					Other (Note 1)	Total	Adjustment (Note 2)	Amount recorded in semi-annual 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	40,392	43,679	43,589	38,738	166,400	2,332	168,732	-	168,732
   Intersegment sales	970	150	469	17	1,608	292	1,901	-1,901	-
   Total	41,363	43,830	44,059	38,755	168,008	2,624	170,633	-1,901	168,732
   Segment profits	812	3,665	2,485	2,062	9,025	326	9,351	21	9,373

   (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 21 million yen in segment profits mainly represents the deduction of intersegment transactions.

   2. Segment profits have been adjusted with operating profit recorded in the semi-annual consolidated statements of income.

(Conclusion of a financing agreement)

At a meeting of the Board of Directors held on June 13, 2025, the Company resolved to borrow money for the repayment of 21,000 million yen in long-term loan maturing in July. It subsequently signed a syndicated loan agreement on July 25, 2025, which was executed on July 30, 2025, with details as follows.

Outline of the syndicated loan

1. Tranche A

   1. Arranger MUFG Bank, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Ltd.

   2. Agent MUFG Bank, Ltd.

   3. Date of agreement July 25, 2025

   4. Contract amount 7,000 million yen

   5. Date of execution July 30, 2025

   6. Final repayment date July 28, 2028

2. Tranche B

   1. Arranger MUFG Bank, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Ltd.

   2. Agent MUFG Bank, Ltd.

   3. Date of agreement July 25, 2025

   4. Contract amount 4,000 million yen

   5. Date of execution July 30, 2025

   6. Final repayment date July 30, 2030