FY2026 Financial Results

May 15, 2026

Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (Based on Japanese GAAP)

Company name: Carlit Co., Ltd. (hereinafter "the Company")

Listed exchange: Prime Market, Tokyo Stock Exchange Code number: 4275 URL: https://www.carlit.co.jp

Representative: Hirofumi Kaneko, Representative Director and President Inquiries: Akira Yamamoto, General Manager of Finance Department Telephone: +81-3-6893-7075

Scheduled date of annual general meeting of shareholders: June 26, 2026 Scheduled date to file securities report: June 24, 2026

Scheduled date to commence dividend payments: June 29, 2026 Preparation of explanatory materials for financial results: Yes Holding of financial results briefing: Yes

(Amounts are rounded down to the nearest million yen)

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

   1. Consolidated operating results (Percentages indicate year-on-year changes)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      For the fiscal year ended Mar. 31, 2026 Mar. 31, 2025	Millions of yen 36,247 36,914	% (1.8) 0.9	Millions of yen 3,459 3,046	% 13.5 (9.1)	Millions of yen 3,755 3,320	% 13.1 (7.8)	Millions of yen 2,976 2,570	% 15.8 (1.1)

      Note: Comprehensive income Fiscal year ended Mar. 31, 2026: ¥4,795 million [220.8%]

      Fiscal year ended Mar. 31, 2025: ¥1,494 million [(64.1)%]

      	Basic earnings per share	Diluted earnings per share	Return on equity	Ordinary profit/total assets	Operating profit/net sales
      For the fiscal year ended Mar. 31, 2026 Mar. 31, 2025	Yen 130.50 109.07	Yen - -	% 7.7 6.9	% 6.8 6.1	% 9.5 8.3

      Reference:

      Share of profit of entities accounted for using equity method: Fiscal year ended Mar. 31, 2026: ¥27 million

      Fiscal year ended Mar. 31, 2025: ¥19 million

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of Mar. 31, 2026 Mar. 31, 2025	Millions of yen 57,674 53,012	Millions of yen 39,793 37,479	% 69.0 70.7	Yen 1,774.98 1,590.20

      Reference: Shareholders' equity: As of Mar. 31, 2026: ¥39,793 million

      As of Mar. 31, 2025: ¥37,479 million

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   For the fiscal year ended Mar. 31, 2026 Mar. 31, 2025	Millions of yen 1,660 4,696	Millions of yen (3,476) (991)	Millions of yen 886 (1,699)	Millions of yen 3,837 4,768

2. Cash dividends

   	Annual dividends per share					Total cash dividends (annual)	Payout ratio (consolidated)	Dividends to net assets ratio (consolidated)
   	1Q- end	2Q- end	3Q- end	Fiscal year-end	Total
   For the fiscal year ended Mar. 31, 2025 Mar. 31, 2026	Yen - -	Yen 0.00 0.00	Yen - -	Yen 36.00 42.00	Yen 36.00 42.00	Millions of yen 862 959	% 33.0 32.2	% 2.3 2.5
   For the fiscal year ending Mar. 31, 2027 (Forecast)	-	0.00	-	42.00	42.00		31.4

3. Forecasts of consolidated financial results for the fiscal year ending March 31, 2027

(from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes)

Notes:

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

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

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

   3. Changes in accounting estimates: None

   4. Restatement: None

3. Number of issued shares (common shares)

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

      As of Mar. 31, 2026

      22,940,600 shares

      As of Mar. 31, 2025

      24,050,000 shares

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

      As of Mar. 31, 2026

      521,563 shares

      As of Mar. 31, 2025

      480,859 shares

   3. Average number of shares outstanding during the period

(Reference) Non-consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

1. Non-consolidated operating results (Percentages indicate year-on-year changes)

   	Net sales		Operating profit		Ordinary profit		Profit
   For the fiscal year ended Mar. 31, 2026 Mar. 31, 2025	Millions of yen 21,740 11,894	% 82.8 975.5	Millions of yen 1,826 664	% 175.0 -	Millions of yen 2,715 2,091	% 29.8 94.8	Millions of yen 4,922 3,457	% 42.4 203.3
   	Profit per share		Diluted profit per share
   For the fiscal year ended Mar. 31, 2026 Mar. 31, 2025	Yen 215.82 146.71		Yen - -

2. Non-consolidated financial position

   	Total assets	Net assets	Equity ratio	Net assets per share
   As of Mar. 31, 2026 Mar. 31, 2025	Millions of yen 52,299 46,498	Millions of yen 36,518 34,113	% 69.8 73.4	Yen 1,628.92 1,447.39

   Reference: Shareholders' equity: As of Mar. 31, 2026: ¥36,518 million; As of Mar. 31, 2025: ¥34,113 million

   • Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

   • Proper use of earnings forecasts, and other special matters (Notice concerning forward-looking statements)

The forward-looking statements described in this document, such as business forecasts, are based on information available at the time of release of these materials and reasonable assumptions made by the Company, and do not represent a commitment from the Company that they will be achieved. Actual financial results, etc. may differ significantly from this forecast due to various factors. For assumptions used for earnings forecasts and notes on the use of earnings forecasts, please refer to "1. Overview of Business Results, (1) Summary of Business Results" on page 2 of the attached document.

(Acquisition method of explanatory materials for financial results and contents of financial results briefing)

Video recording

Table of Contents

1. Overview of Business Results 2

   1. Summary of Business Results 2

   2. Summary of the Consolidated Balance Sheets and Statements of Cash Flows 6

   3. Basic Policy on Profit Distribution and Cash Dividends 8

   4. Business Risks 9

2. Status of the Group 12

3. Management Policy 14

4. Basic Stance on Selection of Accounting Standards 15

5. Consolidated Financial Statements 16

   1. Consolidated Balance Sheets 16

   2. Consolidated Statements of Income and Comprehensive Income 18

      Consolidated Statements of Income 18

      Consolidated Statements of Comprehensive Income 19

   3. Consolidated Statements of Changes in Shareholders' Equity 20

   4. Consolidated Statements of Cash Flows 22

   5. Notes to Consolidated Financial Statements 24

Going Concern Assumption 24

Changes in Presentation 24

Segment Information 25

Per Share Information 29

Subsequent Events 29

1

In our Medium-term Management Plan "Challenge 2027," which started this fiscal year, we have positioned several businesses, including ammonium perchlorate, a solid propellant ingredient for space rockets and defense-related products, as priority areas, focus areas, and development areas, and are promoting management based on a new business portfolio.

The three years from fiscal year 2025 to fiscal year 2027, which is the period of the Medium-term Management Plan, are positioned as the "Investment Promotion" stage. To achieve business growth and profit expansion in the final year, we will actively execute investments such as production capacity enhancement, new production facilities, and energy-saving and labor-saving measures.

By executing our management philosophy of "For Confidence and Infinite Challenges," we aim to promote the growth of existing businesses and establish new businesses, while also promoting management that is conscious of the cost of capital and the share price in pursuing improvements in corporate value enlisting PBR as a benchmark.

As for return of profits to shareholders, our basic policy is to promote performance-linked dividends with a total payout ratio of 40% (of which, dividend payout ratio of 30% or higher). Based on this, while our year-end dividend forecast announced in November 2025 was ¥38 per share, we decided to pay an annual ordinary dividend of ¥42 per share, an increase of ¥6 from the previous fiscal year's actual dividend of ¥36 per share.

This proposal will be submitted and officially approved at the annual general meeting of shareholders scheduled to be held in June 2026.

1. ‌Summary of Business Results

   1. Explanation of operating results

      In the fiscal year ended March 31, 2026, performances were solid in the Chemical Products segment's Explosives sub-segment and Electronic materials sub-segment, as well as in the Bottling segment and in the Metal Working segment, resulting in increased profits. This is due to our sales efforts such as the reflection of fair prices, and decreases of general and administrative expenses, etc., in addition to the solid demand in the domestic market.

      On the other hand, Material assessment service sub-segment, Chemicals sub-segment, Ceramic materials sub-segment, Silicon wafers sub-segment within the Chemical Products segment, along with the Engineering Services segment experienced profit declines. Particularly, Silicon wafers sub-segment had a significant impact on the business results. For details, please refer to the "Explanations by business segment."

      Consequently, on the whole, the results are as follows.

      (Millions of yen, unless otherwise noted)

      	Fiscal year ended Mar. 31, 2025	Fiscal year ended Mar. 31, 2026	Amount of change	Rate of change
      Net sales	36,914	36,247	(666)	(1.8)%
      Operating profit	3,046	3,459	412	13.5%
      Ordinary profit	3,320	3,755	435	13.1%
      Profit attributable to owners of parent	2,570	2,976	406	15.8%

   2. Explanations by business segment

Our main products and services are as follows.

Chemical Products segment

Explosives sub-segment = increase in sales and profit

・Industrial explosives experienced a slight decrease in sales volume due to reduced demand for crushing limestone, but sales and profits increased due to the reflection of fair prices to sales companies.

・Automotive emergency flares saw an increase in sales due to steady demand from automobile factories. However, profits decreased due to increased production costs.

・Signal flares for highway use saw an increase in sales and profits due to steady demand and the reflection of fair prices.

2