Consolidated Financial Results for the Second Quarter of Fiscal Year 2025

November 5, 2025

Company name: MARUWA CO., LTD.

Listing: Tokyo Stock Exchange / Nagoya Stock Exchange

Securities code: 5344

URL: https://www.maruwa-g.com/

Representative: Toshiro Kambe, Representative Director and President

Inquiries: Daisuke Yamaguchi, Director and Head of Administration Division Telephone: +81-561-51-0841

Scheduled date to file semi-annual securities report: November 13, 2025

Scheduled date to commence dividend payments: December 8, 2025

Preparation of supplementary material on financial results: Yes

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

Rounded down to the nearest million yen

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

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Six months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      September 30, 2025	33,115	(4.9)	10,843	(15.2)	11,123	(7.3)	7,413	(12.2)
      September 30, 2024	34,822	24.1	12,789	47.9	11,999	24.8	8,440	24.5

      Note: Comprehensive income For the six months ended September 30, 2025:	¥8,090 million	[(12.8)%]
      For the six months ended September 30, 2024:	¥9,273 million	[24.7%]

      	Basic earnings per share	Diluted earnings per share
      Six months ended	Yen	Yen
      September 30, 2025	600.78	-
      September 30, 2024	684.12	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio
   As of	Millions of yen	Millions of yen	%
   September 30, 2025	147,915	135,360	91.5
   March 31, 2025	142,285	127,854	89.9

   Reference: Equity

   As of September 30, 2025: ¥135,360 million

   As of March 31, 2025: ¥127,854 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	-	47.00	-	47.00	94.00
   Fiscal year ending March 31, 2026	-	51.00
   Fiscal year ending March 31, 2026 (Forecast)				51.00	102.00

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

3. Forecast of consolidated financial results 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 earnings forecasts 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:None

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	12,372,000 shares
      As of March 31, 2025	12,372,000 shares

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

      As of September 30, 2025	33,264 shares
      As of March 31, 2025	32,112 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

(Cautions on forward-looking statements, etc.)

The forward-looking statements, including forecasts of financial results, contained in these materials are based on information available to the Company and on certain assumptions deemed to be reasonable. Actual financial results may differ from the results anticipated in the statements due to various factors.

1. Overview of Operating Results, etc.

1. Business Results

   During the first half of the fiscal year ending March 31, 2026 (April 1 to September 30, 2025), concerns over geopolitical risks persisted due to ongoing developments in the Middle East and Ukraine, as well as the global focus on tariff policies involving the United States and other countries. In the high-tech market, rapid technological advancements and active investments were observed across a wide range of fields related to generative AI.

   Working within this business environment, while the next-generation high-speed communications-related business remained at a high level, weaker market conditions were observed in the automobile- and semiconductor-related businesses.

   As a result, consolidated net sales for the first half of the fiscal year ending March 31, 2026, decreased by 4.9% year on year to 33,115 million yen, operating profit decreased by 15.2% to 10,843 million yen, and ordinary profit decreased by 7.3% to 11,123 million yen. Net profit attributable to owners of the parent decreased by 12.2% year on year to 7,413 million yen.

   For the full year, we expect a recovery trend in the automobile and semiconductor-related businesses starting from the third quarter. In addition, supported by the growth of the generative AI market, the telecommunication-related business is projected to see accelerated growth from the fourth quarter onward, driven by the full-scale launch of a successor model for next-generation high-speed communication.

   Based on the above, we expect to achieve record-high results for the full year, with net sales of 75,100 million yen and operating profit of 27,000 million yen.

   The annual dividend for the fiscal year ending March 31, 2026, is planned to be 102 yen per share, an increase of 8 yen from the previous fiscal year.

   Sales and profits by segment are as follows. (Ceramic Components Business)

   In this segment, while the telecommunication-related business remained firm, the semiconductor- and automobile-related businesses experienced weaker market conditions.

   As a result, net sales for the first half of the fiscal year ending March 31, 2026, decreased by 5.8% year on year to 28,950 million yen, and segment profit decreased by 16.0% year on year to 10,945 million yen.

   For the full year, we expect a recovery trend in the automobile and semiconductor-related businesses, while growth in the telecommunication-related business is projected to accelerate with the full-scale launch of a successor model for next-generation high-speed communication, resulting in increases in both sales and profits.

   (Lighting Equipment Business)

   This segment saw steady performance, mainly in high-end lighting products, supported by increasing demand for LEDs due to Japan's upcoming policy to phase out fluorescent lamp production by 2027 and the expansion of the high-end new condominium market in metropolitan area.

   As a result, net sales for the first half of the fiscal year ending March 31, 2026, increased by 1.5% year on year to 4,164 million yen, while segment profit rose by 42.4% year on year to 702 million yen.

   For the full year, we expect business performance to remain solid, mainly driven by high-end lighting for the high-end new condominium market in metropolitan area.

2. Financial Conditions (Assets)

   Current assets at the end of the first half of the fiscal year ending March 31, 2026, totaled 99,535 million yen, a decrease of 754 million yen from the end of the previous fiscal year, primarily due to a reduction in accounts receivable. Non-current assets increased by 6,384 million yen to 48,380 million yen.

   As a result, total assets amounted to 147,915 million yen, an increase of 5,630 million yen from the end of the previous fiscal year.

   (Liabilities)

   Current liabilities at the end of the first half of the fiscal year ending March 31, 2026, decreased by 1,893 million yen to 12,039 million yen. Non-current liabilities increased by 17 million yen to 515 million yen.

   As a result, total liabilities decreased by 1,876 million yen to 12,555 million yen.

   (Net Assets)

   Net assets at the end of the first half of the fiscal year ending March 31, 2026, increased by 7,506 million yen to 135,360 million yen, primarily due to the recording of 7,413 million yen in interim net profit attributable to owners of the parent. As a result, the equity ratio was 91.5% (89.9% at the end of the previous fiscal year).

3. Future Outlook

Based on the results for the first half, we have revised our consolidated full-year forecast for the fiscal year ending March 31, 2026, which was initially announced on April 25, 2025.

For the second half, growth is expected to accelerate due to increased production for next-generation high-speed communication. For the full fiscal year, we continue to expect increases in both revenue and profit.

Current outlook by segment is as follows.

In the telecommunication-related business, progress is expected to exceed the initial forecast. With the full-scale launch of a successor model for next-generation high-speed communication, end-user demand has further strengthened, and we expect continued growth in the next fiscal year.

In the automobile-related business, growth for new energy vehicles has slowed due to market conditions. However, we anticipate a recovery from inventory adjustments. For medium- to long-term growth, we will continue to strengthen profitability through automation and yield improvement.

In the semiconductor-related business, although the market recovery in demand for general-purpose memory has been slow, a steady recovery is underway. Demand related to generative AI remains strong, and with the expansion of differentiated high-purity SiC products for SPE, sales are expected to grow from the second half of the fiscal year.

In the industrial equipment-related business, demand for power modules has slowed due to market conditions, but demand for new medical-related products is increasing.

In the lighting equipment-related business, high-end lighting products continue to perform steadily, supported by increasing LED demand due to Japan's upcoming policy to phase out fluorescent lamp production by 2027 and the expansion of the high-end new condominium market in metropolitan areas.

On the earnings front, we will continue to enhance profitability through further factory automation and improved yields on new products. Regarding profit figures below ordinary profit, it is difficult to provide forecasts at this time due to the potential volatility caused mainly by exchange rate fluctuations.

As part of our medium-term plan, we aim to achieve net sales of 100 billion yen in the fiscal year ending March 31, 2029, and we are pleased to report that steady progress is being made toward this goal, even taking into account ongoing changes in the EV market environment.

The assumed exchange rate for the full-year consolidated earnings forecast remains unchanged from the initial forecast at 144 yen per U.S. dollar.

(Millions of yen)