Bando Chemical Industries Ltd.TSE: 5195

Financial Results for the Six Months Ended September 30,2025

Nov 20, 2025 at 5:54 AM UTC · Issued by Bando Chemical Industries Ltd.

‌Financial Results for the Six Months Ended September 30, 2025

November 7, 2025

‌Table of contents

Financial Results for the Six Months ended September 30, 2025
Forecast for the Fiscal Year Ending March 31, 2026
Engagement for Mid-to Long-Term Management Plan
"Creating New Value for the Future" 1st stage
Appendix

001

‌Financial Results for the Six Months Ended September 30, 2025

002

‌Financial Highlight

（Unit：million Yen、％）

	FY2024 Q2 FY2025 Q2			FY2025 Full year
	Result 58,098	Result	Change +995	Forecast （Revised on November 7, 2025） 117,000	Achieved ratio 50.5%
Revenue		59,094
Core Operating Profit 4,106		4,463	+356	8,200	54.4%
Operating Profit 5,048		6,569	+1,521	10,500	62.6%
Profit attributable to 3,297 owners of parent		4,819	+1,521	7,400	65.1%

Exchange rate	U S D	152.46 146.04 -		145.00	-
	T H B	4.30 4.46 -		4.40	-
	C N Y	21.22 20.34 -		20.00	-

Revenue increased due to steady growth on a local currency basis despite the Japanese yen strengthened
Operating profit and profit attributable to owners of parent increased due to the recording of insurance claim

income (1,524 million yen) for the hail damage that occurred at the Company's Kakogawa Plant in the previous

fiscal year

003

‌Revenue by Area for Q2

日本

中国

アジア

欧米

Asia

China

（Unit：100 Million Yen）

Japan

Other

242

250

243

173

156

201

196

FY2022 FY2023 FY2024 FY2025

004

(※) The above amount was after the elimination of intersegment transactions.

‌Analysis of Core Operating Profit

4,463

4,106

+584

(618)

+444

（Unit：Million Yen）

(188 )

+135

FY2024 Q2	Increase in gross	Changes in cost	Effects of exchange	Increase in SG&A	Effects of exchange	FY2025 Q2
Results	profit due to	ratio	rates (gross profit)	expenses	rates (SG&A	Results
	increasing revenue				expenses)

005

‌Quarterly Operating Results (Revenue and Core Operating Profit)

293

287

291

290

265

273

267

275

283

（Unit：100 Millions Yen）

Core Operating Profit

Revenue

300

200 20

100 10

Q1 Q2 Q3 Q4 FY2023

Q1 Q2 Q3 Q4 FY2024

Q1 Q2

006

FY2025

‌Operating Results by Segment

（Unit：Million Yen 、％）

		FY2024 Q2		FY2025 Q2
		Result	Result	Change	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		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%

007

‌Overview of Automotive Parts

（Unit：100 Millions Yen）

292

Other	+1.3%	Sales of products for aftermarket industries increased.
China	+7.6%	Sales of variable speed belts for scooters increased.
Asia	(1.9)%	Although sales of variable speed belts for scooters increased, sales of accessory drive power transmission system goods (such as Auto Tensioner) decreased.
Japan	+4.7%	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.

294

Revenue

by Area

300

200

100

38.9

27.7

39.4

29.7

165.6

162.3

60.4

63.2

FY2024 Q2 FY2025 Q2

Core Operating profit

（Unit：100 Millions Yen）

24.3

24.7

Core

Operating Profit

(1.6)%

Core operating profit decreased due to changes in sales mix while revenue increased.

008

FY2024 Q2 FY2025 Q2

Note: The above amount of revenue was after the elimination of intersegment transactions.

Other	+8.7%	Sales of power transmission belts for industrial machinery increased.
China	+14.2%	Sales of power transmission belts for agricultural machinery increased.
Asia	(9.3)%	Sales of power transmission belts for agricultural machinery decreased.
Japan	+1.7%	Sales of power transmission belts for industrial machinery shifted the same level as the previous year. Sales of heavy-duty conveyer belts and light-duty conveyer belts (such as SUNLINE belt) increased.

‌Overview of Industrial Products

（Unit：100 Millions Yen）

192

197

32.3

16.1

26.2

35.1

18.4

23.7

118.0

120.0

200

Revenue

by Area

100

FY2024 Q2 FY2025 Q2

Core Operating Profit

（Unit：100 Millions Yen）

16.7

13.4

Core

Operating Profit

+24.0%

Core operating profit increased due to an increase in revenue.

009

FY2024 Q2 FY2025 Q2

(※) The above amount of revenue was after the elimination of intersegment transactions.

‌Overview of Advanced Elastomer Products

Revenue by Products

（Unit：100 Millions Yen）

26.8

27.3

43.9

43.7

Functional

Films

+2.1%

Sales of decorative display films

increased.

Precision

Functional

Parts

(0.2)%

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

FY2024 Q2 FY2025 Q2

Core Operating Profit

（Unit：100 Millions Yen）

(0.1)

1.4

Core Operatiing Profit

+152

Million yen

Core operating profit increased due to an increase in revenue and changes in sales mix.

(3)

010

FY2024 Q2 FY2025 Q2

(※) The above amount of revenue was after the elimination of intersegment transactions.

‌Statements of Financial Position

（Unit：100 Millions Yen）

1,206

1,198

Borrowings 20

Other assets

257

Equity

858

Other liabilities

139

Trade and other payables

177

PPE, Goodwill intangible assets

343

Inventories

193

Cash and cash equivalents

163

Trade and other receivables

240

Cash and cash equivalents	Borrowings 71
177	Trade and other payables
Trade and	180
other receivables
other receivables
229	Other liabilities 129
Inventories
195
PPE, Goodwill Intangible assets 344	Equity 825
Other assets
260

Assets	(13)	Decrease in cash and cash equivalents mainly due to a decrease in borrowings
Liabilities	(50)	Decrease in borrowings
Equity	+34	Increase in retained earnings
	(11)	Acquisition of treasury shares

Assets Liabilities/Equity Assets Liabilities/Equity

011

FY2024 Year-end FY2025 Q2

‌Forecast for the Fiscal Year Ending March 31, 2026

012

‌Financial results forecast

（Unit：Million yen, ％）

	FY2024 Results	Previous forecast	Revised forecast	FY2025 Change (YoY, based on revised forecast)
Revenue	115,593	115,000	117,000	+1,406	+1.2%
Core Operating Profit	7,743	8,200	8,200	+456	+5.9%
Operating Profit	3,480	9,500	10,500	+7,019	+201.7%

Profit attributable to owners of parent

1,496 6,700

7,400

+5,903

+394.5%

U	S	D	152.57	140.00	145.00	-	-
T	H	B	4.40	4.00	4.40	-	-
C	N	Y	21.13	19.50	20.00	-	-

Exchange rate

Revenue has been revised upward from the previously announced forecast, due to steady growth on a local currency basis and the impact of the revised exchange rate assumptions.
Operating profit and profit attributable to owners of parent have been revised upward from the previously announced forecast, primarily due to the recording of insurance claim income for the hail damage that occurred at the Company's Kakogawa Plant, despite a reduction in share of profit of investments accounted for using equity method.

013

‌Engagement for Mid-to Long-Term Management Plan

"Creating New Value for the Future" 1st Stage

014

‌Overview of Mid-to Long-Term Management Plan

FY2023

CV-1

FY2026

FY2027

CV-2

FY2030

FY2050

Vision 2050 Best Partner,supporting people and society,connecting the present and future

Creating New Value for the Future

Vision

Medium-to-long term strategy

Creation of value

Evolution of new businesses and deepening of core businesses, accelerated by joint creation

Creation of smart manufacturing Preparing for the Bando Dream Factory of the future

Evolution of organizational

capabilities for the future Laying down the groundwork to support evaluation

GUIDELINE1 GUIDELINE2 GUIDELINE3
R e v e n u e	120 billion yen
Core Operating Profit	12 billion yen
ＲＯＥ	12%

Creation of value

Toward an optimum business portfolio

Achieving the Bando Dream Factory model line

Safe, secure, and environmentally friendly manufacturing

Joint creation New businesses Core businesses

The Bando Dream Factory's

global expansion

Obtaining an overwhelming competitive edge

Reduction of CO2 emissions by 38%（compared to FY2013 levels）

Non-financial Indicators

Medium-to lo ls

ng term goa

Evolution of organizational capabilities for the future

We are continuously evolving

015

Achieving carbon neutrality

Toward sustainable growth

‌Management Focused on Cost of Capital and Share Price

Goal

In November 2023, the Company published 'Towards growth of corporate value' and implemented various initiatives.

Achieve ROE of 12% by FY2026

Cost of equity (CAPM basis) is estimated around 8%.
Although the current PBR is approaching 1x due to improved performance and rising a stock market, the ROE target remains unmet.
We will continue to strengthen profitability and improve capital efficiency to achieve our ROE target.
Policy

Strengthen Profitability and Improve Capital Efficiency, based on Mid-to Long-Term Management Plan "CV-1"

Profitability • Change business portfolio to meet future needs

Select the fields of investment by profitability and growth potential ex.) Restructuring business: suppress investments, principally
Core business: focus on investments for profitable products New business: invest actively for business development

Achieve manufacturing with both high quality and profitability: digitalization,

optimum production, and shipping

Capital Efficiency • Change of shareholder return policy and balance sheet management

016

‌Analysis of Current Situation for Growth of Corporate Value

Current status

Future initiatives

① The current PBR is approaching 1x due to improved performance and rising a stock market.

② ROE temporarily declined due to the impact of impairment losses and other factors, but excluding these one-time factors, it is essentially trending upward.

To further improve PBR, improve ROE by

・Strengthening profitability

・Improving capital efficiency

PBR1.0

Trend for PBR and ROE

PBR

ROE

0.94

0.84

②

1.8％

0.8

0.6

0.4

0.2

①

12%

10%

Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 Sep 2025(*)

*ROE for the six months ended September 30, 2025 calculated based on revised earnings forecast for the fiscal year ending March 31, 2026

017

‌Progress on Initiatives to Strengthen Profitability

Automotive Parts

Expansion of products compatible with electric vehicles and environmentally compliant products
Expand sales into the global aftermarket and business expansion into the personal

mobility market

Industrial Products

Launch new products aligned with customer needs
Expand sales of agricultural machinery belts, light conveyor belts, and synchronous

belts in key markets, while entering growth markets and increasing market share

Advanced Elastomer Products

Expand sales of urethane belts
Expand sales of film products that excel in environmental

compatibility and design appeal

Other Business

In the Electronic Products Business, inquiries are increasing for products such as Ultra-thick transparent adhesive sheet for optical use "Free Crystal " and high thermal conductive sheet "HEATEX "
In the Medical and Healthcare Equipment Business, sales for products utilizing capacitance-type sensor "C-STRETCH " and amine modified resorbable bone regeneration material "e=Bone " expanded

018

‌Improve capital efficiency

financial year is expected to be 80 yen

(+4 yen compared to the previous year)

1.8 Million shares

（Maximum）

Amounts

2 Billion yen

（Maximum）

Periods

From May 16, 2025 to

April 30, 2026

Annual dividend per share for the current
Acquisition of treasury shares by market purchases is in progress

Dividends per share Total shareholder returns

3,344

3,198

3,109

2,274

1,790

1,186

1,000

2,000

（Unit：Yen）（Unit：Million yen）

FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

Dividends per share（Yen）

(Forecast)

Dividends

Acquisition of treasury shares

Note: The above amount is after elimination of dividends paid to ESOP and BIP trusts.

(Forecast)

019

‌Dialogue with Shareholders and Investors

Dialogue context

Conduct individual meetings with institutional investors and analysts and briefings

Overview of Shareholders and Investors Engaged in Dialogue (FY2024 Results)

Main Dialogue Topics

Overseas 14.8%

Area

Japan

85.2%

Sellside 18.5%

Attribution

Buyside

81.5%

Growth drivers for Mid-to Long-Term
Management Plan
Progress on New Businesses and products compatible with electric vehicles
Status of external joint creation (M&A,
Investments in Startups, etc.)
Initiatives and outcomes related to Reconstruction Businesses
020
Impact of U.S. tariff policies and countermeasures

‌Appendix

021

‌Quarterly Operating Results for Automotive Parts

（Unit：Million Yen） 16,000

14,000

12,849

13,418 13,374 13,637

14,946

14,311

14,704

14,094

14,626 14,854

16%

14%

12,000

10,000

8,000

6,000

6.3%

7.5%

8.6%

8.3%

7.6%

9.4%

6.6%

10.3%

8.1%

8.4%

12%

10%

4,000

2,000

811

1,008

1,153

1,137

1,130

1,340

975

1,450

1,178

1,253 2%

Revenue

Segment profit

Profit ratio

Q1 Q2 Q3 Q4 FY2023

Q1 Q2 Q3 Q4 FY2024

Q1 Q2

022

FY2025

‌Quarterly Operating Results for Industrial Products

（Unit：Million Yen）

12,000

10,000

8,000

9,142 9,373

10.6%

8,749

9,403 9,659 9,605 9,386 9,442 9,495

10,236

15%

6,000

4,000

9.9%

9.3%

8.4%

6.9%

7.1%

6.4%

6.2%

7.4%

9.4%

10%

2,000

968

928

810

786 671 677

603

589

706

965

Revenue

Segment profit

Profit ratio

Q1 Q2 Q3 Q4 FY2023

Q1 Q2 Q3 Q4 FY2024

Q1 Q2

023

FY2025

‌Quarterly Operating Results for Advanced Elastomer Products

3,524

3,406

3,461

3,375

3,564

3,506

3,689

3,456

3,593

3,521

1.2%

2.2%

1.1%

1.8%

-1.3%

-0.9%

-0.1%

-1.1%

-2.1%

-1.5%

（Unit：Million Yen） 4,500

3,500

15.0%

10.0%

2,500 5.0%

1,500 0.0%

500 -5.0%

(500)

(46) (29) (4) (70)

Revenue

Segment profit

Profit Ratio

(54) (40)

FY2025

024

-10.0%

Q1 Q2 Q3 Q4 FY2023

Q1 Q2 Q3 Q4 Q1 Q2 FY2024

‌This document contains descriptions of future performance. Such descriptions do not guarantee future performance and are subject to risks and uncertainties. Please note that future performance may differ from actual results due to changes in the business environment.

Additionally, this document is provided for information purposes only and is not intended to solicit transactions.

025

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