Consolidated Financial Results for the Six Months Ended September 30, 2025(Under IFRS)

November 7, 2025

Company name: Bando Chemical Industries, Ltd. Listing: Tokyo Stock Exchange Securities code: 5195

URL: https://www.bandogrp.com

Representative: Tomio Ueno, President and Representative Director

Inquiries: Kazuyuki Hayashi, Executive Officer and General Manager of Finance and Accounting Department

Telephone: +81-78-304-2516

Scheduled date to file semi-annual securities report: November 10, 2025 Scheduled date to commence dividend payments: December 1, 2025 Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Revenue		Core operating profit		Operating profit		Profit before tax
      Six months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      September 30, 2025	59,094	1.7	4,463	8.7	6,569	30.1	6,591	45.7
      September 30, 2024	58,098	7.7	4,106	9.3	5,048	11.8	4,525	(16.3)

      Note: Core operating profit is calculated as revenue subtracted by cost of sales and selling, general, and administrative expenses.

      	Profit attributable to owners of parent		Total comprehensive income		Basic earnings per share	Diluted earnings per share
      Six months ended	Millions of yen	%	Millions of yen	%	Yen	Yen
      September 30, 2025	4,819	46.2	6,507	106.9	115.97	-
      September 30, 2024	3,297	(10.2)	3,144	(57.5)	77.23	-

   2. Consolidated financial position

   	Total assets	Total equity	Equity attributable to owners of parent	Ratio of equity attributable to owners of parent to total assets
   As of	Millions of yen	Millions of yen	Millions of yen	%
   September 30, 2025	119,896	86,134	85,895	71.6
   March 31, 2025	120,693	82,501	82,131	68.0

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended March 31, 2025	-	38.00	-	38.00	76.00
   Fiscal year ending March 31, 2026	-	40.00
   Fiscal year ending March 31, 2026 (Forecast)			-	40.00	80.00

   Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial results forecast for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate changes from the previous corresponding period.)

Note: Revisions to the forecast of financial results most recently announced: Yes

1. Significant changes in the scope of consolidation during the period: None

2. Changes in accounting policies and changes in accounting estimates

   1. Changes in accounting policies required by IFRS: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

3. Number of issued shares (ordinary shares)

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

      As of September 30, 2025	44,213,536 shares
      As of March 31, 2025	44,213,536 shares

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

      As of September 30, 2025	3,045,683 shares
      As of March 31, 2025	2,410,402 shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Note: The Company has introduced an executive compensation BIP trust. Shares of the Company owned by the trust are included in the treasury shares.

• Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters

Forward-looking statements contained in this document, including financial results forecasts, are based on information currently available to the Company and certain assumptions that the Company believes to be

reasonable. The Company makes no assurances as to the actual results and/or other outcomes, which may differ significantly from these forecasts due to various factors. Please refer to page 3, "1. Qualitative information on Financial Results for the Six Months ended September 30, 2025 (4) Explanation of Consolidated Financial Results Forecast" for the suppositions that form the assumptions used for and the use of the financial results forecasts.

The Company plans to hold a briefing session for institutional investors and analysts on November 20, 2025. Immediately after the meeting, the presentation materials will be available on the Company's website.

Table of Contents

1. Qualitative information on Financial Results for the Six Months ended September 30, 2025 2

   1. Explanation of Operating Results 2

   2. Explanation of Financial Position 3

   3. Explanation of Cash Flows 3

   4. Explanation of Consolidated Financial Results Forecast 3

2. Condensed Interim Consolidated Financial Statements and Significant Notes 4

   1. Condensed Interim Consolidated Statement of Financial Position 4

   2. Condensed Interim Consolidated Statements of Income and Comprehensive Income 6

   3. Condensed Interim Consolidated Statement of Changes in Equity 8

   4. Condensed Interim Consolidated Statement of Cash Flows 9

   5. Notes to the Condensed Interim Consolidated Financial Statements 11

(Going Concern Assumption) 11

(Segment Information) 11

1. Qualitative Information on Financial Results for the Six Months ended September 30, 2025

   1. Explanation of Operating Results

      		Six Months ended September 30, 2024 (Millions of yen)	Six Months ended September 30, 2025 (Millions of yen)	Change (Millions of yen)	Change in ratio (%)
      Revenue		58,098	59,094	995	1.7
      	Automotive Parts	29,257	29,481	223	0.8
      	Industrial Products	19,267	19,731	463	2.4
      	Advanced Elastomer Products	7,070	7,118	48	0.7
      	Other	2,917	3,151	233	8.0
      	Adjustments	(414)	(389)	25	-
      Core operating profit (loss) (Segment profit (loss))		4,106	4,463	356	8.7
      	Automotive Parts	2,470	2,432	(38)	(1.6)
      	Industrial Products	1,348	1,672	323	24.0
      	Advanced Elastomer Products	(11)	140	152	-
      	Other	164	81	(82)	(50.1)
      	Adjustments	134	136	1	1.1
      Operating profit		5,048	6,569	1,521	30.1
      Profit before tax		4,525	6,591	2,066	45.7
      Profit attributable to owners of parent		3,297	4,819	1,521	46.2

      Note: Core operating profit is calculated as revenue subtracted by cost of sales and selling, general, and administrative expenses.

      Revenue for the six months ended September 30, 2025 increased by 1.7% to ¥59,094 million compared with the same period of the previous fiscal year, core operating profit increased by 8.7% to ¥4,463 million, operating profit increased by 30.1% to ¥6,569 million, profit before tax increased by 45.7% to 6,591 million, and profit attributable to owners of parent increased by 46.2% to ¥4,819 million.

      The operating results for the six months ended September 30, 2025 by business segment were as follows:

      Automotive Parts

      In Japan, although automobile production volume decreased, sales of accessory drive power transmission belts (such as RIBACE™) increased due to an increase in the number of models adopting to the Company's products. Overseas, sales of products for aftermarket industries increased in the U.S. and Europe. Sales of variable speed belts for scooters increased as production by motorcycle manufacturers was trending steadily upward in China. Although sales of variable speed belts for scooters for aftermarket industries increased, sales of accessory drive power transmission system goods (such as Auto Tensioner) decreased in Asia.

      As a result, revenue increased by 0.8% to ¥29,481 million compared with the same period of the previous fiscal year. On the other hand, segment profit decreased by 1.6% to ¥2,432 million compared with the same period of the previous fiscal year due to changes in sales mix.

      Industrial Products

      Regarding industrial power transmission belts, sales of power transmission belts for industrial machinery shifted the same level as the previous year in Japan. Overseas, sales of power transmission belts for industrial machinery increased in the U.S. and Europe, sales of power transmission belts for agricultural machinery increased in China. Sales of power transmission belts for agricultural machinery decreased in Asia.

      For conveyor belts, sales of heavy-duty conveyor belts and light-duty conveyor belts (such as SUNLINE™ belt) increased in Japan.

      As a result, revenue increased by 2.4% to ¥19,731 million compared with the same period of the previous fiscal year. On the other hand, segment profit increased by 24.0% to ¥1,672 million compared with the same period of the previous fiscal year.

      Advanced Elastomer Products

      Regarding films products, sales of decorative display films increased.

      For precision parts, sales of precision belts and cleaning blades decreased, although sales of high-performance rollers increased.

      As a result, revenue increased by 0.7% to ¥7,118 million compared with the same period of the previous fiscal year. Segment profit was ¥140 million compared with ¥11 million of segment loss for the same period of the previous fiscal year.

      Other

      Other segment includes the robotics-related devices, electronic products, and medical equipment businesses. Revenue increased by 8.0% to ¥3,151 million and segment profit decreased by 50.1% to ¥81 million compared with the same period of the previous fiscal year.

      The above revenue and profit by segment were the amount before the elimination of intersegment transactions.

   2. Explanation of Financial Position

      Total assets as of September 30, 2025 decreased by ¥797 million to ¥119,896 million compared with the end of the previous fiscal year. The main reason was a decrease in cash and cash equivalents, income taxes receivable, and investment accounted for using equity method while trade and other receivables increased.

      Total liabilities decreased by ¥4,430 million to ¥33,761 million compared with the end of the previous fiscal year. The main reason was a decrease in borrowings.

      Total equity increased by ¥3,633 million to ¥86,134 million compared with the end of the previous fiscal year. The main reason was an increase in retained earnings while the Company acquired treasury shares.

      As a result, the ratio of equity attributable to owners of parent to total assets was 71.6%, compared with 68.0% at the end of the previous fiscal year.

   3. Explanation of Cash Flows

      Cash and cash equivalents as of September 30, 2025 decreased by ¥1,342 million to ¥16,373 million compared with the beginning of the fiscal year. The summary of cash flows and major factors were as follows:

      (Cash flows from operating activities)

      Net cash provided by operating activities increased by ¥2,734 million to ¥8,345 million compared with the same period of the previous fiscal year. The main reason was an increase in proceeds from operations after adjusting profit before tax for non-cash items.

      (Cash flows from investing activities)

      Net cash used in investing activities decreased by ¥1,391 million to ¥1,175 million compared with the same period of the previous fiscal year. The main reasons were proceeds from withdrawals of term deposits exceeded payments into term deposits and an increase in proceeds from sale of equity instruments.

      (Cash flows from financing activities)

      Net cash used in financing activities increased by ¥4,156 million to ¥8,618 million compared with the same period of the previous fiscal year. The main reason was an increase in repayments of borrowings.

   4. Explanation of Consolidated Financial Results Forecast

   The Company has revised its consolidated financial results forecast for the fiscal year ending March 31, 2026, which was announced on May 15, 2025, in light of the financial results for the six months ended September 30, 2025 and outlook for the future.

   For more details, please refer to the "Notice Concerning Revisions to Consolidated Financial Results Forecast for the Fiscal Year" which has been announced today.

2. Condensed Interim Consolidated Financial Statements and Significant Notes

1. Condensed Interim Consolidated Statement of Financial Position

   (Millions of yen)

   Assets

   Current assets

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

   Cash and cash equivalents	17,715	16,373
   Trade and other receivables	22,978	24,068
   Inventories	19,530	19,345
   Income taxes receivable	380	76
   Other financial assets	1,530	652
   Other current assets	1,259	1,371
   Total current assets	63,396	61,888
   Non-current assets
   Property, plant and equipment	30,532	30,607
   Goodwill	1,175	1,179
   Intangible assets	2,748	2,592
   Investments accounted for using equity method	11,590	11,315
   Other financial assets	10,318	11,385
   Deferred tax assets	647	654
   Other non-current assets	283	272
   Total non-current assets	57,297	58,007
   Total assets	120,693	119,896

   Liabilities and equity Liabilities

   Current liabilities

   (Millions of yen) As of March 31, 2025 As of September 30, 2025

   Trade and other payables	18,098	17,745
   Borrowings	5,350	483
   Income taxes payable	764	1,479
   Other financial liabilities	1,064	1,118
   Provisions	1	0
   Other current liabilities	6,013	6,205
   Total current liabilities	31,292	27,033
   Non-current liabilities
   Borrowings	1,787	1,562
   Retirement benefit liability	880	913
   Other financial liabilities	1,649	1,730
   Deferred tax liabilities	1,895	2,021
   Other non-current liabilities	686	500
   Total non-current liabilities	6,899	6,728
   Total liabilities	38,191	33,761
   Equity
   Share capital	10,951	10,951
   Capital surplus	2,921	2,939
   Retained earnings	59,418	62,819
   Treasury shares	△3,678	△4,845
   Other components of equity	12,519	14,029
   Total equity attributable to owners of parent	82,131	85,895
   Non-controlling interests	369	239
   Total equity	82,501	86,134
   Liabilities and equity	120,693	119,896

2. Condensed Interim Consolidated Statements of Income and Comprehensive Income (Condensed Interim Consolidated Statement of Income)

   Six months ended September 30, 2024

   (Millions of yen)

   Six months ended September 30, 2025

   Revenue	58,098	59,094
   Cost of sales	41,732	41,888
   Gross profit	16,366	17,206
   Selling, general and administrative expenses	12,259	12,742
   Other income	402	1,693
   Other expenses	260	232
   Share of profit of investments accounted for using equity method	799	645
   Operating profit	5,048	6,569
   Finance income	259	282
   Finance costs	781	260
   Profit before tax	4,525	6,591
   Income tax expenses	1,201	1,758
   Profit	3,323	4,832
   Profit attributable to
   Owners of parent	3,297	4,819
   Non-controlling interests	26	13
   Profit	3,323	4,832

   Earnings per share

   Basic earnings per share (Yen) 77.23 115.97

   (Condensed Interim Consolidated Statement of Comprehensive Income)

   (Millions of yen)

   	Six months ended	Six months ended
   	September 30, 2024	September 30, 2025
   Profit	3,323	4,832
   Other comprehensive income Items that will not be reclassified to profit or loss Net change in fair value of equity instruments designated as measured at fair value through	(220)	980
   other comprehensive income Share of other comprehensive income of investments accounted for using equity	(8)	4
   method
   Total	(228)	984
   Items that may be reclassified to profit or loss

   Exchange differences on translation of foreign operations

   Share of other comprehensive income of

   (11) 608

   investments accounted for using method	equity	62	81
   Total		50	690
   Total other comprehensive income		(178)	1,674
   Comprehensive income		3,144	6,507
   Comprehensive income attributable to Owners of parent		3,134	6,500
   Non-controlling interests		10	7
   Comprehensive income		3,144	6,507

3. Condensed Interim Consolidated Statement of Changes in Equity

   Six months ended September 30, 2024

   Equity attributable to owners of parent

   Total equity

   Non-

   (Millions of yen)

   Share capital

   Capital surplus

   Retained earnings

   Treasury shares

   Other component s of equity

   attributable to owners of parent

   controlling interests

   Total

   Balance as of April 1, 2024	10,951	2,936	61,039	(1,692)	11,927	85,163	347	85,511
   Profit			3,297			3,297	26	3,323
   Other comprehensive income					(162)	(162)	(16)	(178)
   Total comprehensive income	-	-	3,297	-	(162)	3,134	10	3,144
   Dividends of surplus			(1,630)			(1,630)	(21)	(1,651)
   Purchase of treasury shares				(982)		(982)		(982)
   Disposal of treasury shares		1		14		15		15
   Share-based remuneration transactions		14				14		14
   Total transactions with the owners	-	16	(1,630)	(967)	-	(2,582)	(21)	(2,603)
   Balance as of September 30, 2024	10,951	2,952	62,706	(2,660)	11,765	85,716	336	86,052
   Six months ended September 30, 2025							(Mill	ions of yen)

   Equity attributable to owners of parent

   Total equity

   Non-

   Share capital

   Capital surplus

   Retained earnings

   Treasury shares

   Other component s of equity

   attributable to owners of parent

   controlling interests

   Total

   Balance as of April 1, 2025	10,951	2,921	59,418	(3,678)	12,519	82,131	369	82,501
   Profit			4,819			4,819	13	4,832
   Other comprehensive income					1,681	1,681	(6)	1,674
   Total comprehensive income	-	-	4,819	-	1,681	6,500	7	6,507
   Dividends of surplus			(1,588)			(1,588)	(137)	(1,725)
   Purchase of treasury shares				(1,181)		(1,181)		(1,181)
   Disposal of treasury shares		2		15		17		17
   Share-based remuneration transactions		14				14		14
   Transfer from other components of equity to retained earnings			170		(170)	-		-
   Total transactions with the owners	-	17	(1,418)	(1,166)	(170)	(2,737)	(137)	(2,874)
   Balance as of September 30, 2025	10,951	2,939	62,819	(4,845)	14,029	85,895	239	86,134

4. Condensed Interim Statement of Cash Flows

   (Millions of yen)

   	Six months ended	Six months ended
   	September 30, 2024	September 30, 2025
   Cash flows from operating activities
   Profit before tax	4,525	6,591
   Depreciation and amortization	2,975	2,655
   Impairment losses	53	64
   Interest and dividend income	(246)	(270)
   Interest expenses	45	49
   Foreign exchange loss (gain)	439	61

   Share of loss (profit) of investments accounted for using equity method

   (799) (645)

   Loss (gain) on sale and retirement of fixed assets 21 29

   Decrease (increase) in inventories 610 407

   Decrease (increase) in trade and other receivables	(346)	(977)
   Increase (decrease) in trade and other payables	(1,017)	126
   Increase (decrease) in retirement benefit liability	25	34
   Increase (decrease) in provisions	1	(0)
   Increase / decrease in other current liabilities	(248)	131
   Increase / decrease in other non-current liabilities	(210)	(188)
   Other	(167)	103
   Subtotal	5,662	8,173
   Interest and dividends received	1,535	1,290
   Interest paid	(44)	(50)
   Income taxes paid	(1,742)	(1,406)
   Income taxes refund	199	338
   Net cash provided by (used in) operating activities	5,610	8,345
   Cash flows from investing activities
   Payments into time deposits	(1,833)	(627)
   Proceeds from withdrawal of time deposits	1,739	1,520
   Purchase of property, plant and equipment	(2,392)	(2,322)
   Proceeds from sale of property, plant and equipment	6	13
   Purchase of intangible assets	(107)	(126)
   Proceeds from sale of equity instruments	-	334
   Other	20	32
   Net cash provided by (used in) investing activities	(2,567)	(1,175)

   Cash flows from financing activities

   Six months ended September 30, 2024

   (Millions of yen)

   Six months ended September 30, 2025

   Net increase (decrease) in short-term loans borrowings (within three months)	(400)	(4,866)
   Repayments of long-term borrowings	(825)	(225)
   Repayments of lease liabilities	(602)	(619)
   Purchase of treasury shares	(982)	(1,181)
   Dividends paid to owners of parent	(1,630)	(1,588)
   Dividends paid to non-controlling interests	(21)	(137)
   Net cash provided by (used in) financing activities	(4,462)	(8,618)

   Effect of exchange rate changes on cash and cash equivalents

   Net increase (decrease) in cash and cash equivalents

   (39) 106

   (1,458) (1,342)

   Cash and cash equivalents at beginning of period 17,935 17,715

   Cash and cash equivalents at end of period 16,477 16,373

5. Notes to the Condensed Interim Consolidated Financial Statements (Going Concern Assumption)

None

(Segment Information)

1. Summary of reportable segments

   The reportable segments are components of the Company for which separate financial information is available and whose operating results are reviewed by the Board of Directors to allocate resources and assess segment performance.

   The Group comprises operating divisions based on products and services, and each operating division develops a comprehensive strategy for respective products and services for domestic and overseas markets and conducts business activities.

   Therefore, the Group's business consists of three reportable segments categorized by products and services based on operating division of the parent company: "Automotive Parts Business," "Industrial Products Business," and "Advanced Elastomer Products Business."

   The main products by reportable segment are as follows:

   Segment name	Main products
   Automotive Parts Business	Automotive power transmission belt products (accessory drive power transmission belts and system goods), power transmission belt products for motorcycles (variable speed belts for scooters), etc.
   Industrial Products Business	Industrial power transmission belt products (Industrial machinery V-belts, synchronous belts, pulleys, etc.), other power transmission products, conveyor belts (heavy-duty conveyor belts, light-duty conveyor belts, synchronous conveyance belts, etc.), conveyor system goods, rice hulling rolls, etc.
   Advanced Elastomer Products Business	Cleaning blades, high-performance rollers, precision belts, polyurethane functional parts, precision polishing materials, films for construction materials, medical films, decorative display films, industrial films, etc.

2. Information on revenue, profit or loss, and other items by reportable segments Intersegment revenue is based on market prices.

Revenue, profit or loss, and other items by reportable segments are as follows:

Six months ended September 30, 2024 (Millions of yen)

Notes:

1. The Other segment comprises businesses that are not included in any reportable segments. It mainly includes the medical equipment and robotics-related devices businesses.

2. Adjustments of segment profit (loss) of ¥134 million include the elimination of intersegment transactions of ¥19 million and corporate expenses of ¥115 million. Corporate expenses are differences between the estimated allocation of general administrative expenses and research and development expenses to each reportable segment and the actual amount incurred.

3. The Group uses core operating profit, calculated as revenue subtracted by cost of sales and selling, general and administrative expenses, as a key indicator for business management. Segment profit (loss) is based on core operating profit.

Six months ended September 30, 2025 (Millions of yen)

Notes:

1. The Other segment comprises businesses that are not included in any reportable segments. It mainly includes the medical equipment and robotics-related devices businesses.

2. Adjustments of segment profit (loss) of ¥136 million include the elimination of intersegment transactions of ¥18 million and corporate expenses of ¥117 million. Corporate expenses are differences between the estimated allocation of general administrative expenses and research and development expenses to each reportable segment and the actual amount incurred.

3. The Group uses core operating profit, calculated as revenue subtracted by cost of sales and selling, general and administrative expenses, as a key indicator for business management. Segment profit (loss) is based on core operating profit.