Kansai Paint : Consolidated Financial Results for the Six Months Ended September 30, 2025 (Under Japanese GAAP)

November 7, 2025

Company name: Kansai Paint Co., Ltd.

Listing: Tokyo Stock Exchange

Securities code: 4613

URL: https://www.kansai.co.jp/

Representative: MORI Kunishi, Representative Director of the Board, President

Inquiries: TOMIOKA Takashi, Director of the Board, Managing Executive Officer, Chief Financial Officer

Telephone: +81-6-7178-5531

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

(Yen amounts are rounded down to millions.)

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.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Six months ended September 30, 2025 September 30, 2024	Millions of yen 289,223 294,057	% (1.6) 7.3	Millions of yen 24,326 26,336	% (7.6) 2.3	Millions of yen 28,606 25,996	% 10.0 (19.0)	Millions of yen 16,187 15,685	% 3.2 (66.2)

      Note: Comprehensive income	For the six months ended September 30, 2025:	¥	4,372 million	[	(87.9) %]
      	For the six months ended September 30, 2024:	¥	36,002 million	[	(28.3) %]

      	Basic earnings per share	Diluted earnings per share
      Six months ended	Yen	Yen
      September 30, 2025	91.88	75.96
      September 30, 2024	78.68	66.41

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio
   As of September 30, 2025 March 31, 2025	Millions of yen 750,864 750,699	Millions of yen 346,997 350,009	% 36.1 35.9

   Reference: Equity

   As of September 30, 2025:	¥	271,080 million
   As of March 31, 2025:	¥	269,189 million

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	-	22.00	-	28.00	50.00
   Fiscal year ending March 31, 2026	-	55.00
   Fiscal year ending March 31, 2026 (Forecast)			-	55.00	110.00

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

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

(Percentages indicate year-on-year changes.)

Note: Revisions to the financial result forecast most recently announced: Yes

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

2. Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: Yes

3. 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

4. Number of issued shares (common shares)

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

      As of September 30, 2025	177,976,280 shares
      As of March 31, 2025	177,976,280 shares

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

      As of September 30, 2025	1,908,302 shares
      As of March 31, 2025	1,753,087 shares

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

• 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

The forward-looking statements such as operational forecasts contained in this document are based on information currently available to the Company and certain assumptions which are regarded as legitimate. However, it does not mean that we guarantee its achievement. Actual results may differ from such forward-looking statements for a variety of reasons.

Overview of financial results

In the fiscal year under review, despite a gradual recovery trend, the outlook for the global economy remained uncertain due to heightened geopolitical risks and U.S. trade policies. Under these circumstances, the overall Japanese economy continued to recover moderately, reflecting signs of a pick-up in personal consumption and capital investment. In India, steady economic growth continued, supported by domestic demand, centered on personal consumption and capital investment. In Europe, the effects of the tariff hike by the U.S. gradually became evident, and exports slowed and production activities were pushed down due to a reactionary decline in demand following the last-minute surge and an increase in the burden of tariffs. In addition to the rising inflation rate, input costs such as energy and personnel expenses also increased, and the situation continued to squeeze corporate earnings. In China, the economy was stagnant due to trade problems between the U.S. and China and the stagnant real estate market.

The Group's net sales for the second quarter of the current fiscal year were 289,223 million yen (down 1.6% year on year). Operating profit was 24,326 million yen (down 7.6% year on year) mainly due to increased fixed costs, despite the promotion of measures to improve selling prices and reduce costs. Ordinary profit was 28,606 million yen (up 10.0% year on year) due to foreign exchange gains and a decrease in loss on net monetary position from hyperinflation accounting. Profit attributable to owners of parent was 16,187 million yen (up 3.2% year on year) due to the recording of one-time extraordinary losses such as impairment losses and loss on withdrawal from business.

Segment overviews are as follows.

In the automotive coatings sector, although the number of automobiles manufactured fell below compared to the previous year, net sales increased from the previous year due to efforts to improve selling prices. Also, in the industrial coatings sector, net sales increased from the previous year due to the success of sales promotion activities. Meanwhile, in the decorative coatings and protective coatings sector, net sales fell below the previous year due to sluggish market conditions. In the marine sector, net sales fell below the previous year due to the recent decline in demand from the previous year. Segment profit remained at the same level as the previous year, mainly due to higher profit in the automotive coatings and industrial coatings sector and lower profit in the decorative coatings, protective coatings, and marine sector.

As a result of those factors, the segment’s net sales and segment profit were 79,948 million yen (down 2.4% year on year) and 10,781 million yen (down 0.5% year on year), respectively.

In the decorative coatings sector, net sales fell below the previous year due to intensifying market competition and the shift to lower-priced products. In the automotive coatings sector, net sales on a local currency basis were higher than the previous year due to an increase in the number of automobiles manufactured. However, overall net sales in India fell below the previous year due to the impact of foreign currency translation caused by the appreciation of the yen. Segment profit decreased from the previous year due to a decrease in sales and an increase in personnel expenses.

As a result of those factors, the segment’s net sales and segment profit were 70,165 million yen (down 6.9% year on year) and 7,263 million yen (down 13.6% year on year), respectively.

In Turkey, the number of automobiles manufactured by major customers was lower than the previous year, and net sales fell below the previous year. In other European countries, net sales increased from the previous year, partly due to the contribution of bolt-on M&A

conducted in the previous year. As a result, overall net sales in Europe increased from the previous year. Segment profit decreased from the previous year due to an increase in fixed costs such as personnel expenses caused by inflation, despite stable raw material prices and an improvement in share of loss of entities accounted for using equity method.

As a result of those factors, the segment’s net sales and segment profit were 79,222 million yen (up 3.8% year on year) and 511 million yen (down 31.1% year on year), respectively.

In China, the number of automobiles manufactured increased from the previous year, and net sales increased from the previous year. Meanwhile, in Thailand and Malaysia, the number of automobiles manufactured declined. As a result, overall net sales in Asia fell below the previous year. Segment profit decreased from the previous year due to the impact of lower sales in the automotive coatings sector.

As a result of those factors, the segment’s net sales and segment profit were 32,777 million yen (down 2.2% year on year) and 5,113 million yen (down 0.9% year on year), respectively.

In South Africa and neighboring countries, net sales increased from the previous year, partly due to the contribution from the acquisition of new customers last year, despite ongoing chronic power shortages and continued political instability. In East Africa, net sales were firm in the industrial coatings sector as well as in the mainstay decorative coatings sector. Segment profit increased from the previous year due to the expansion of the decorative coatings sector business in East Africa, which was the main factor behind the increase in sales.

As a result of those factors, the segment’s net sales and segment profit were 22,573 million yen (up 4.8% year on year) and 2,235 million yen (up 29.8% year on year), respectively.

In North America, the number of automobiles manufactured was lower than the previous year, and net sales fell below the previous year. Segment profit decreased from the previous year due to the impact of lower sales and a decrease in share of profit of entities accounted for using equity method.

As a result of those factors, the segment’s net sales and segment profit were 4,535 million yen (down 16.9% year on year) and 992 million yen (down 52.4% year on year).

Semi-annual Consolidated Financial Statements

1. Semi-annual Consolidated Balance Sheet

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

   Assets
   Current assets
   Cash and deposits	76,656	68,865
   Notes and accounts receivable - trade, and contract assets	120,858	132,417
   Securities	32,489	29,177
   Merchandise and finished goods	59,053	55,387
   Work in process	8,642	8,769
   Raw materials and supplies	44,233	45,211
   Other	19,588	19,295
   Allowance for doubtful accounts	(5,992)	(5,694)
   Total current assets	355,530	353,430
   Non-current assets
   Property, plant and equipment
   Buildings and structures, net	76,498	78,774
   Other, net	107,300	109,497
   Total property, plant and equipment	183,798	188,271
   Intangible assets
   Goodwill	35,711	33,610
   Other	44,811	44,814
   Total intangible assets	80,522	78,425
   Investments and other assets
   Investment securities	57,907	58,500
   Other	78,207	77,491
   Allowance for doubtful accounts	(5,267)	(5,254)
   Total investments and other assets	130,847	130,737
   Total non-current assets	395,168	397,434
   Total assets	750,699	750,864

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

   Liabilities
   Current liabilities
   Notes and accounts payable - trade	85,218	81,646
   Short-term borrowings	11,895	18,045
   Short-term bonds payable	31,985	28,988
   Income taxes payable	5,348	6,852
   Provision for bonuses	5,932	5,746
   Other	36,668	43,349
   Total current liabilities	177,049	184,629
   Non-current liabilities
   Bonds payable	60,000	60,000
   Convertible-bond-type bonds with share acquisition rights	100,472	100,412
   Retirement benefit liability	7,331	7,876
   Other	55,835	50,947
   Total non-current liabilities	223,639	219,237
   Total liabilities	400,689	403,866
   Net assets
   Shareholders' equity
   Share capital	25,658	25,658
   Capital surplus	18,343	18,365
   Retained earnings	186,659	198,732
   Treasury shares	(2,101)	(2,533)
   Total shareholders' equity	228,560	240,223
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	12,451	15,306
   Deferred gains or losses on hedges	(0)	(1)
   Foreign currency translation adjustment	19,615	7,498
   Remeasurements of defined benefit plans	8,562	8,053
   Total accumulated other comprehensive income	40,628	30,857
   Share acquisition rights	224	248
   Non-controlling interests	80,595	75,668
   Total net assets	350,009	346,997
   Total liabilities and net assets	750,699	750,864

2. Semi-annual Consolidated Statements of Income and Comprehensive Income

   Semi-annual Consolidated Statement of Income
   		(Millions of yen)
   	For the six months ended September 30, 2024	For the six months ended September 30, 2025
   Net sales	294,057	289,223
   Cost of sales	200,945	195,987
   Gross profit	93,111	93,235
   Selling, general and administrative expenses	66,774	68,909
   Operating profit	26,336	24,326
   Non-operating income
   Interest income	846	1,042
   Dividend income	385	357
   Share of profit of entities accounted for using equity method	2,609	2,573
   Foreign exchange gains	-	1,921
   Miscellaneous income	1,616	1,488
   Total non-operating income	5,457	7,383
   Non-operating expenses
   Interest expenses	1,464	1,405
   Loss on abandonment of inventories	92	128
   Foreign exchange losses	2,310	-
   Loss on net monetary position	1,403	1,004
   Miscellaneous expenses	526	566
   Total non-operating expenses	5,798	3,104
   Ordinary profit	25,996	28,606
   Extraordinary income
   Gain on sale of non-current assets	96	388
   Reversal of impairment loss	188	-
   Gain on sale of investment securities	1,940	876
   Total extraordinary income	2,225	1,265
   Extraordinary losses
   Loss on sale and retirement of non-current assets	19	93
   Impairment losses	-	680
   Loss on valuation of investment securities	0	-
   Loss on withdrawal from business	-	655
   Extra payments for early retirements	4	489
   Total extraordinary losses	24	1,918
   Profit before income taxes	28,197	27,953
   Income taxes	9,893	9,966
   Profit	18,304	17,987
   Profit attributable to non-controlling interests	2,619	1,799
   Profit attributable to owners of parent	15,685	16,187

   Semi-annual Consolidated Statement of Comprehensive Income

   For the six months

   (Millions of yen) For the six months

   ended September 30, 2024 ended September 30, 2025

   Profit	18,304	17,987
   Other comprehensive income
   Valuation difference on available-for-sale securities	(2,608)	1,394
   Deferred gains or losses on hedges	(0)	(1)
   Foreign currency translation adjustment	18,335	(13,583)
   Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for	(470)	(508)
   using equity method Total other comprehensive income	17,697	(13,614)
   Comprehensive income	36,002	4,372
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	31,014	6,416
   Comprehensive income attributable to non-controlling interests	4,988	(2,043)

3. Semi-annual Consolidated Statement of Cash Flows

For the six months ended September 30, 2024

(Millions of yen)

For the six months ended September 30, 2025

(Millions of yen)

Segment information

1. Six months ended September 30, 2024 (April 1, 2024 - September 30, 2024)

   Information about sales, profit and loss by reportable segment

   (Millions of yen)

   	Reportable segments						Other *1	Total	Adjustment *2	Consolidated *3
   	Japan	India	Europe	Asia	Africa	Total
   Net sales
   (1) Sales to customers	81,890	75,325	76,311	33,530	21,541	288,599	5,457	294,057	—	294,057
   (2) Intersegment sales and transfers	7,524	64	110	1,397	103	9,200	—	9,200	(9,200)	—
   Total sales	89,414	75,389	76,421	34,928	21,645	297,799	5,457	303,257	(9,200)	294,057
   Operating profit	10,148	8,464	1,981	3,132	1,617	25,343	1,000	26,343	(7)	26,336
   Share of profit (loss) of entities accounted for using equity method	690	(56)	(1,238)	2,024	105	1,525	1,084	2,609	—	2,609
   Segment profit	10,838	8,407	742	5,157	1,722	26,868	2,084	28,953	(7)	28,946

   Notes:

   *1 The "Other" category includes business activities of subsidiaries and affiliates in the U.S., Mexico and other locations.

   *2 Adjustments for segment profit represent the elimination of intersegment transactions.

   *3 Segment profit is adjusted to reflect operating profit recorded in the Semi-annual Consolidated Statement of Income which is adjusted by share of profit (loss) of entities accounted for using equity method.

   *4 Reportable segments other than Japan include the following countries: India: India, Bangladesh, Nepal and other locations.

   Europe: Slovenia, Turkey, Austria and other locations. Asia: Indonesia, Thailand, China and other locations.

   Africa: South Africa, Uganda, Zimbabwe and other locations.

2. Six months ended September 30, 2025 (April 1, 2025 - September 30, 2025)

Information about sales, profit and loss by reportable segment

(Millions of yen)

Notes:

*1 The "Other" category includes business activities of subsidiaries and affiliates in the U.S., Mexico and other locations.

*2 Adjustments for segment profit represent the elimination of intersegment transactions.

*3 Segment profit is adjusted to reflect operating profit recorded in the Semi-annual Consolidated Statement of Income which is adjusted by share of profit (loss) of entities accounted for using equity method.

*4 Reportable segments other than Japan include the following countries: India: India, Bangladesh, Nepal and other locations.

Europe: Slovenia, Turkey, Austria and other locations. Asia: Indonesia, Thailand, China and other locations.

Africa: South Africa, Uganda, Zimbabwe and other locations.