Consolidated Financial Results for the Three Months Ended June 30, 2025 (Under IFRS)

August 8, 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 commence dividend payments: -Preparation of supplementary material on quarterly financial results: Yes Holding of quarterly financial results briefing: None

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

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

      	Revenue		Core operating profit		Operating profit		Profit before tax
      Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      June 30, 2025	29,092	(0.9)	2,018	3.0	3,818	66.6	3,636	27.3
      June 30, 2024	29,344	10.5	1,960	11.8	2,292	13.8	2,857	5.1

      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
      Three months ended	Millions of yen	%	Millions of yen	%	Yen	Yen
      June 30, 2025	2,652	37.2	2,538	(45.1)	63.54	-
      June 30, 2024	1,932	2.6	4,622	5.8	45.10	-

   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	%
   June 30, 2025	116,876	83,040	82,813	70.9
   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	-
   Fiscal year ending March 31, 2026 (Forecast)		40.00	-	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: None

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 June 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 June 30, 2025	2,572,411 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.

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

• Proper use of earnings forecast, and other special matters

Forward-looking statements contained in this document, including financial results forecast, 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 Three Months ended June 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 forecast.

Table of Contents

1. Qualitative information on Financial Results for the Three Months ended June 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 Quarterly Consolidated Financial Statements and Significant Notes 4

   1. Condensed Quarterly Consolidated Statement of Financial Position 4

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

   3. Condensed Quarterly Consolidated Statement of Changes in Equity 8

   4. Condensed Quarterly Consolidated Statement of Cash Flows 9

   5. Notes to the Condensed Quarterly Consolidated Financial Statements 11

(Going Concern Assumption) 11

(Segment Information) 11

1. Qualitative Information on Financial Results for the Three Months ended June 30, 2025

   1. Explanation of Operating Results

      		Three Months ended June 30, 2024 (Millions of yen)	Three Months ended June 30, 2025 (Millions of yen)	Change (Millions of yen)	Change in ratio (%)
      Revenue		29,344	29,092	(251)	(0.9)
      	Automotive Parts	14,946	14,626	(320)	(2.1)
      	Industrial Products	9,661	9,495	(165)	(1.7)
      	Advanced Elastomer Products	3,564	3,595	31	0.9
      	Other	1,314	1,553	238	18.2
      	Adjustments	(142)	(178)	(35)	-
      Core operating profit (loss) (Segment profit (loss))		1,960	2,018	58	3.0
      	Automotive Parts	1,130	1,178	47	4.2
      	Industrial Products	671	706	35	5.3
      	Advanced Elastomer Products	42	78	36	86.1
      	Other	82	7	(74)	(91.0)
      	Adjustments	33	47	13	39.3
      Operating profit		2,292	3,818	1,525	66.6
      Profit before tax		2,857	3,636	779	27.3
      Profit attributable to owners of parent		1,932	2,652	719	37.2

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

      Revenue for the three months ended June 30, 2025 decreased by 0.9% to ¥29,092 million compared with the same period of the previous fiscal year, core operating profit increased by 3.0% to ¥2,018 million, operating profit increased by 66.6% to ¥3,818 million, profit before tax increased by 27.3% to 3,636 million, and profit attributable to owners of parent increased by 37.2% to ¥2,652 million.

      The operating results for the three months ended June 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. In China and Asia, sales of variable speed belts for scooters increased as production by motorcycle manufacturers was trending steadily upward.

      In addition, overall overseas revenue decreased due to stronger yen, although it increased on a local currency basis.

      As a result, revenue decreased by 2.1% to ¥14,626 million compared with the same period of the previous fiscal year. On the other hand, segment profit increased by 4.2% to ¥1,178 million compared with the same period of the previous fiscal year due to cost reduction activities.

      Industrial Products

      Regarding industrial power transmission belts, sales of power transmission belts for industrial machinery decreased 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, although sales of light-duty conveyor belts (such as SUNLINE™ belt) increased in Japan, sales of heavy-duty conveyor belts decreased.

      As a result, revenue decreased by 1.7% to ¥9,495 million compared with the same period of the previous fiscal year. On the other hand, segment profit increased by 5.3% to ¥706 million compared with the same period of the previous fiscal year due to changes in sales mix.

      Advanced Elastomer Products

      Regarding films products, sales of films for construction materials and 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 0.9% to ¥3,595 million and segment profit increased by 86.1% to ¥78 million compared with 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 18.2% to ¥1,553 million and segment profit decreased by 91.0% to ¥7 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 June 30, 2025 decreased by ¥3,817 million to ¥116,876 million compared with the end of the previous fiscal year. The main reason was a decrease in cash and cash equivalents, other financial assets, and investment accounted for using equity method.

      Total liabilities decreased by ¥4,356 million to ¥33,835 million compared with the end of the previous fiscal year. The main reason was a decrease in borrowings.

      Total equity increased by ¥539 million to ¥83,040 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 70.9%, compared with 68.0% at the end of the previous fiscal year.

   3. Explanation of Cash Flows

      Cash and cash equivalents as of June 30, 2025 decreased by ¥2,374 million to ¥15,341 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 ¥2,121 million to ¥5,307 million compared with the same period of the previous fiscal year. The main reason was an increase in income from operations after adjustments for non-cash items from profit before tax.

      (Cash flows from investing activities)

      Net cash used in investing activities decreased by ¥888 million to ¥323 million compared with the same period of the previous fiscal year. The main reason was proceeds from withdrawals of term deposits exceeded payments into term deposits.

      (Cash flows from financing activities)

      Net cash used in financing activities increased by ¥2,573 million to ¥7,194 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

   No change from the consolidated financial results forecast for the fiscal year ending March 31, 2026, announced on May 15, 2025.

2. Condensed Quarterly Consolidated Financial Statements and Significant Notes

1. Condensed Quarterly Consolidated Statement of Financial Position

   (Millions of yen)

   Assets

   Current assets

   As of March 31, 2025 As of June 30, 2025

   Cash and cash equivalents	17,715	15,341
   Trade and other receivables	22,978	23,779
   Inventories	19,530	19,283
   Income taxes receivable	380	71
   Other financial assets	1,530	706
   Other current assets	1,259	1,173
   Total current assets	63,396	60,354
   Non-current assets
   Property, plant and equipment	30,532	30,447
   Goodwill	1,175	1,179
   Intangible assets	2,748	2,662
   Investments accounted for using equity method	11,590	11,113
   Other financial assets	10,318	10,204
   Deferred tax assets	647	652
   Other non-current assets	283	260
   Total non-current assets	57,297	56,521
   Total assets	120,693	116,876

   Liabilities and equity Liabilities

   Current liabilities

   (Millions of yen)

   As of March 31, 2025 As of June 30, 2025

   Trade and other payables	18,098	17,708
   Borrowings	5,350	450
   Income taxes payable	764	966
   Other financial liabilities	1,064	1,142
   Provisions	1	1
   Other current liabilities	6,013	7,066
   Total current liabilities	31,292	27,335
   Non-current liabilities
   Borrowings	1,787	1,675
   Retirement benefit liability	880	887
   Other financial liabilities	1,649	1,837
   Deferred tax liabilities	1,895	1,512
   Other non-current liabilities	686	588
   Total non-current liabilities	6,899	6,499
   Total liabilities	38,191	33,835
   Equity
   Share capital	10,951	10,951
   Capital surplus	2,921	2,922
   Retained earnings	59,418	60,482
   Treasury shares	(3,678)	(3,953)
   Other components of equity	12,519	12,409
   Total equity attributable to owners of parent	82,131	82,813
   Non-controlling interests	369	227
   Total equity	82,501	83,040
   Liabilities and equity	120,693	116,876

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

   (Millions of yen)

   Three months ended June 30, 2024

   Three months ended June 30, 2025

   Revenue	29,344	29,092
   Cost of sales	21,101	20,666
   Gross profit	8,243	8,426
   Selling, general and administrative expenses	6,282	6,407
   Other income	51	1,594
   Other expenses	107	77
   Share of profit of investments accounted for using equity method	388	281
   Operating profit	2,292	3,818
   Finance income	627	223
   Finance costs	62	405
   Profit before tax	2,857	3,636
   Income tax expenses	910	973
   Profit	1,947	2,662
   Profit attributable to
   Owners of parent	1,932	2,652
   Non-controlling interests	14	10
   Profit	1,947	2,662

   Earnings per share

   Basic earnings per share (Yen) 45.10 63.54

   (Condensed Quarterly Consolidated Statement of Comprehensive Income)

   Three months ended June 30, 2024

   (Millions of yen)

   Three months ended June 30, 2025

   Profit 1,947 2,662

   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	469	(58)
   other comprehensive income
   Share of other comprehensive income of
   investments accounted for using equity	(5)	(0)
   method
   Total	464	(58)
   Items that may be reclassified to profit or loss

   Exchange differences on translation of foreign operations

   Share of other comprehensive income of

   1,844 (172)

   investments accounted for using method	equity	366	107
   Total		2,211	(65)
   Total other comprehensive income		2,675	(124)
   Comprehensive income		4,622	2,538
   Comprehensive income attributable to Owners of parent		4,584	2,542
   Non-controlling interests		38	(4)
   Comprehensive income		4,622	2,538

3. Condensed Quarterly Consolidated Statement of Changes in Equity

Three months ended June 30, 2024

Equity attributable to owners of parent

Total

Non-

(Millions of yen)

Share capital

Capital surplus

Retained earnings

Treasury shares

Other component s of equity

equity attributable to owners of parent

controlling interests

Total

Equity attributable to owners of parent

Total

Non-

Share capital

Capital surplus

Retained earnings

Treasury shares

Other component s of equity

equity attributable to owners of parent

controlling interests

Total

Cash flows from financing activities

Three months ended June 30, 2024

(Millions of yen)

Three months ended June 30, 2025

Effect of exchange rate changes on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

438 (163)

(2,208) (2,374)

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

Cash and cash equivalents at end of period 15,727 15,341

(5) Notes to the Condensed Quarterly 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:

Three months ended June 30, 2024 (Millions of yen)

Notes:

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

2. Adjustments of segment profit (loss) of ¥33 million include the elimination of intersegment transactions of ¥ (15) million and corporate expenses of ¥49 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.

Three months ended June 30, 2025 (Millions of yen)

Notes:

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

2. Adjustments of segment profit (loss) of ¥47 million include the elimination of intersegment transactions of ¥9 million and corporate expenses of ¥38 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.