Nagase : Consolidated Financial Statements for the Six Months Ended September 30, 2025

November 6, 2025

These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.

Representative: Hiroyuki Ueshima, Representative Director and President

Contact: Kazuhiro Hanba, Executive Officer, General Manager, Corporate Management Department TEL: +81-3-3665-3103

Filing of semi-annual securities report (scheduled): November 12, 2025 Start of distribution of dividends (scheduled): December 1, 2025 Supplementary documents of financial results: Yes

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

(Note: Amounts have been rounded down to the nearest million yen.)

1. Consolidated Results for the Six Months Ended September 30, 2025 (April 1, 2025 to September 30, 2025)

   1. Consolidated Operating Results (% = year-on-year change)

      	Net sales		Gross profit		Operating income		Ordinary income		Profit attributable to owners of the parent
      Six months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      September 30, 2025	479,734	-0.3	90,913	3.3	21,058	0.0	20,717	2.1	15,089	-5.6
      September 30, 2024	480,976	6.8	87,993	−	21,054	45.4	20,297	42.5	15,977	55.9

      (Note) 1. Comprehensive income For the six months ended September 30, 2025: ¥12,825 million (48.5% decrease)

      For the six months ended September 30, 2024: ¥24,888 million (20.5% decrease)

2. Due to a change in accounting policy, gross profit for the six months ended September 30, 2024, has been restated retrospectively. Accordingly, the year-on-year percentage change for the six months is not presented.

1. Consolidated Financial Position

(Reference) Equity capital As of September 30, 2025: ¥394,651 million As of March 31, 2025: ¥399,052 million

1. Dividends

   	Annual Dividends per Share
   	1Q	2Q	3Q	Fiscal year end	Annual
   For the year ended (or ending) March 2025 March 2026	Yen − −	Yen 45.00 45.00	Yen −	Yen 45.00	Yen 90.00
   March 2026 (forecast)			−	50.00	95.00

   (Notes) Revisions to the latest dividends forecast: No

2. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)

   (% = year-on-year change)

   	Net sales		Gross profit		Operating income		Ordinary income		Profit attributable to owners of the parent		Earnings per share
   Full fiscal year	Millions of yen 964,000	% 2.0	Millions of yen 183,000	% 5.6	Millions of yen 40,700	% 4.1	Millions of yen 40,600	% 5.8	Millions of yen 31,500	% 23.4	Yen 300.53

   (Notes) 1. Revisions to the latest consolidated earnings forecast: Yes

   1. For details, please refer to 1. Qualitative Information, (3) Qualitative Information Related to Consolidated Earnings Forecasts, on P.6 of this document.

   2. Due to a change in accounting policy, the year-on-year percentage change in gross profit is calculated using the retrospectively adjusted figures for the corresponding period of the previous fiscal year.

* Notes

1. Significant changes in the scope of consolidation during the period: Yes

   New: 8 (Company names: APLIQUIMICA APLICACOES QUIMICAS ESPECIAIS LTDA

   SACHEM Japan Holding GK SACHEM Japan GK

   SN Tech Corporation SACHEM Wuxi Co., Ltd. SACHEM Korea Ltd.

   NAGASE WAHLEE INDIA PRIVATE LIMITED

   Nagase Diagnostics Co., Ltd.)

   Excluded: 1 (Company name: Nagase Abrasive Materials Co., Ltd.)

2. Application of special accounting methods to the preparation of semi-annual financial statements: Yes

   (Note) For details, please refer to 2. Semi-Annual Consolidated Financial Statements and Notes, (4) Notes Related to Semi-Annual Consolidated Financial Statements (Special Accounting Treatment Applied in Preparing Semi-Annual Consolidated Financial Statements), on P.14 of this document.

3. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections

   1. Changes in accordance with revisions to accounting and other standards: No

   2. Changes in items other than (i) above: Yes

   3. Changes in accounting estimates: Yes

   4. Restatement of prior period financial statements after error corrections: No

      (Note) For details, please refer to 2. Semi-Annual Consolidated Financial Statements and Notes, (4) Notes Related to Semi-Annual Consolidated Financial Statements (Changes in Accounting Policy) and (Changes in Accounting Estimates) on P.14 of this document.

4. Number of shares issued and outstanding (common stock)

   1. Number of shares issued and outstanding as of the fiscal period end (including treasury stock)

      September 30, 2025

      109,908,285 shares

      March 31, 2025

      114,908,285 shares

   2. Number of treasury stock as of the fiscal period end

      September 30, 2025

      5,493,637 shares

      March 31, 2025

      6,443,222 shares

   3. Average number of shares during the period

(Note) The number of treasury shares as of the fiscal period end includes Company shares held by the Stock-Granting Trust for Directors (265,800 shares as of September 30, 2025 and 282,400 shares as of March 31, 2025). Treasury stock deducted from the calculation of the average number of shares during the period includes Company shares held by the Stock-Granting Trust for Directors (277,657 shares for the period ended September 30, 2025 and 286,757 shares for the period ended September 30, 2024).

• Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm.
• Cautionary Statement with Respect to Forecasts of Consolidated Business Results

The earnings forecasts presented in this document are based upon currently available information and assumptions deemed rational. A variety of factors could cause actual results to differ materially from forecasts.

For matters related to earnings forecasts, please refer to 1. Qualitative Information, (3) Qualitative Information Related to Consolidated Earnings Forecasts, on P.6 of this document.

1. Qualitative Information 2

   1. Review of Business Performance 2

   2. Review of Financial Position 5

   3. Qualitative Information Related to Consolidated Earnings Forecasts 6

2. Semi-Annual Consolidated Financial Statements and Notes 8

   1. Semi-Annual Consolidated Balance Sheets 8

   2. Semi-Annual Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 10

      Semi-Annual Consolidated Statements of Income

      Six-month periods ended September 30, 2025 and 2024 10

      Semi-Annual Consolidated Statements of Comprehensive Income

      Six-month periods ended September 30, 2025 and 2024 11

   3. Semi-Annual Consolidated Statements of Cash Flows 12

   4. Notes Related to Semi-Annual Consolidated Financial Statements 14

(Assumption for Going Concern) 14

(Changes in Accounting Policy) 14

(Changes in Accounting Estimates) 14

(Significant Fluctuations in Shareholders’ Equity) 14

(Special Accounting Treatment Applied in Preparing the Interim Consolidated Financial Statements) 14

(Additional Information) 15

(Segment Information, etc.) 16

(Significant Subsequent Events) 17

1. Qualitative Information
   1. Review of Business Performance
      1. General Summary of Results

         Earnings for the six-month period ended September 30, 2025 are as follows.

         (Millions of yen)

         	Six-month period ended September 30, 2024	Six-month period ended September 30, 2025	Change	Change (%)
         Net sales	480,976	479,734	(1,242)	(0.3)
         Gross profit	87,993	90,913	2,919	3.3
         Operating income	21,054	21,058	4	0.0
         Ordinary income	20,297	20,717	419	2.1
         Profit before income taxes	23,004	21,232	(1,771)	(7.7)
         Profit attributable to owners of the parent	15,977	15,089	(887)	(5.6)

         ・Although net sales for the half quarter of the current fiscal year decreased due in part to the impact of yen appreciation on foreign exchange, gross profit margin improved as a result of improved profitability at certain manufacturing subsidiaries and other factors, resulting in an overall increase in gross profit for the period.

         ・Operating income was level year on year with an increase in gross profit, despite M&A-related expenses and an increase in

         selling, general and administrative expenses, which was caused by an increase in retirement benefit expenses related to the amortization of actuarial differences. For details, see b. Segment Summary.

         ・Profit attributable to owners of the parent decreased ¥0.8 billion to ¥15.0 billion, despite a gain on negative goodwill. Factors behind this decrease included a loss on business withdrawal due to the fiscal 2020 decision to withdraw from the thin-film processing business for glass substrates in China and the impact of posting a gain on sale of investment securities in the same period of the previous fiscal year.

      2. Segment Summary

         The following describes performance by segment.

         The comparative analysis of gross profit in the Life & Healthcare segment reflects the retrospective application of a change in accounting policy for the first half of the previous fiscal year.

         *For details, please refer to (Changes in Accounting Policy) on P.14 of this document.

         Functional Materials

         (Millions of yen)

         	Six-month period ended September 30, 2024	Six-month period ended September 30, 2025	Change	Change (%)
         Net sales	79,416	76,266	(3,150)	(4.0)
         Gross profit	17,027	15,817	(1,209)	(7.1)
         Operating income	5,423	4,226	(1,196)	(22.1)

         Gross profit decreased mainly due to the following factors.

         ・Sales of coating materials decreased due to lower demand in automotive and architectural applications

         ・Sales remained flat for raw materials for semiconductor materials Operating income decreased due to a decrease in gross profit.

         Advanced Materials & Processing

         (Millions of yen)

         	Six-month period ended September 30, 2024	Six-month period ended September 30, 2025	Change	Change (%)
         Net sales	108,202	102,983	(5,219)	(4.8)
         Gross profit	13,091	13,485	393	3.0
         Operating income	3,538	3,706	168	4.8

         Gross profit increased mainly due to the following factors.

         ・Although resin sales declined due to lower volume in the electrical and electronics industry, including office automation equipment, profit margin improved as a result of planned product mix optimization

         ・Sales of industrial hoses and civil engineering pipes increased at Nagase RooTAC Industries,Inc. (corporate name changed from Totaku Industries, Inc. as of November 1, 2025)

         Operating income increased due to an increase in gross profit.

         Electronics & Energy

         (Millions of yen)

         	Six-month period ended September 30, 2024	Six-month period ended September 30, 2025	Change	Change (%)
         Net sales	79,938	84,663	4,725	5.9
         Gross profit	19,330	21,808	2,478	12.8
         Operating income	5,981	6,767	786	13.1

         Gross profit increased mainly due to the following factors.

         ・Sales of materials for the semiconductors increased

         ・Sales of formulated epoxy resins of Nagase ChemteX increased due to strong demand for semiconductors used in AI servers despite demand for mobile device applications remained sluggish

         Operating income increased due to increased gross profit, despite posting M&A related expenses.

         Mobility

         (Millions of yen)

         	Six-month period ended September 30, 2024	Six-month period ended September 30, 2025	Change	Change (%)
         Net sales	66,015	63,745	(2,270)	(3.4)
         Gross profit	8,392	7,815	(576)	(6.9)
         Operating income	2,272	1,860	(411)	(18.1)

         Gross profit decreased mainly due to the following factors.

         ・Resin sales, which account for about half of gross profit, increased due to an increase in volume, despite the impact of yen appreciation

         ・Sales decreased for functional materials and functional components for interior and exterior fittings and electrification Operating income decreased due to a decrease in gross profit.

         Life & Healthcare

         (Millions of yen)

         	Six-month period ended September 30, 2024	Six-month period ended September 30, 2025	Change	Change (%)
         Net sales	147,350	152,030	4,680	3.2
         Gross profit	30,071	31,777	1,705	5.7
         Operating income	1,974	4,555	2,580	130.7

         Gross profit increased mainly due to the following factors.

         ・Sales increased for pharmaceutical raw materials and intermediates

         ・Sales of Nagase Viita increased due to sales of food ingredients and cosmetic materials

         ・The Prinova Group saw an increase in food ingredient sales due to an increase in volume, despite falling market prices Operating income increased, despite M&A related expenses, due to the completion of amortization for certain intangible assets at Nagase Viita and the efficiency improvements at the Prinova Group.

         Others

         No special matters to disclose.

   2. Review of Financial Position
      1. Assets, Liabilities and Net Assets

         (Millions of yen)

         	As of March 31, 2025	As of September 30, 2025	Change	Change (%)
         Current assets	560,126	534,386	(25,739)	(4.6)
         Non-current assets	248,017	278,552	30,535	12.3
         Net assets	808,143	812,939	4,795	0.6
         Liabilities	401,683	410,893	9,210	2.3
         Net assets	406,459	402,045	(4,414)	(1.1)
         Shareholders’ equity ratio (%)	49.4	48.5	(0.9) p	—

         ・Current assets decreased due to a decrease in cash and time deposits and inventories, despite an increase in accounts receivable

         ・Non-current assets increased due to an increase in property, plant and equipment, as well as the recognition of property, plant and equipment and goodwill from new consolidations.

         ・Liabilities increased due to a net increase in commercial paper and short-term loans despite a decrease in accounts payable

         ・Net assets decreased due to purchases of treasury stock and a decrease in translation adjustments, despite the recording of interim profit attributable to owners of the parent

         ・As a result, the Company recorded a shareholders’ equity ratio of 48.5%, down 0.9 points compared to 49.4% from the end of the prior consolidated fiscal year

      2. Consolidated Cash Flows

         (Millions of yen)

         	Six-month period ended September 30, 2024	Six-month period ended September 30, 2025
         Cash flows from operating activities	11,964	16,277
         Cash flows from investing activities	(10,869)	(35,754)
         Cash flows from financing activities	(11,077)	(3,410)

         ・Net cash provided by operating activities was mainly the result of ¥21.2 billion in income before taxes and ¥7.9 billion in depreciation and amortization, offset in part by a ¥7.8 billion decrease in cash due to an increase in working capital and ¥5.6 billion in income taxes paid.

         ・Net cash used in investing activities was mainly the result of ¥19.0 billion outlays for the acquisition of stock of a subsidiary resulting in a change in the scope of consolidation and ¥12.9 billion in purchases of property, plant and equipment.

         ・Net cash used in financing activities was mainly the result of ¥11.8 billion in the acquisition of treasury stock, ¥5.8 billion in repayments of long-term loans, and ¥4.8 billion in dividend payments, offset in part by a net increase of ¥10.8 billion in short-term loans and a net increase of ¥9.5 billion in commercial paper.

   3. Qualitative Information Related to Consolidated Earnings Forecasts

      Although performance varied across business segments, overall progress has exceeded initial forecasts for the full year (April 1, 2025 to March 31, 2026) as published on May 8, 2025. As a result, we have made upward revisions to our forecasts for net sales, gross profit, operating income, and ordinary income. In addition, we expect to post record-high results for each profit measure.

      The main reason for this revision is that sales of functional materials and functional components were lower than expected in the automobile-related business due to a decline in production by certain EV-related customers. Meanwhile, the Prinova Group's Nutrition business achieved cost reductions through efficiency improvements at an early stage, while the Solution business won new projects, contributing significantly to larger-than-expected earnings. In addition, sales of resins to the office equipment and other electrical and electronics industries, experienced higher profit margins with improved product mix, while the Nagase RooTAC Industries, Inc. (corporate name changed from Totaku Industries, Inc. as of November 1, 2025) business delivered strong results. Accordingly, we revised our full-year consolidated earnings forecasts upward.

      We have left our forecast for profit attributable to owners of the parent unchanged, as the business withdrawal loss related to the exit from the thin-film processing for glass substrate business in China, which was decided in fiscal 2020, was higher than originally projected.

      We also changed the assumed foreign exchange rates used as the basis of our earnings forecasts from ¥143 to ¥148 per U.S. dollar and from ¥19 to ¥20.6 per RMB.

      1. Revised full-year consolidated earnings forecasts (April 1, 2025 to March 31, 2026) (Millions of yen)

         	Prior Forecast (A)	Revised Forecast (B)	Change (B-A)	Change (%)
         Net sales	955,000	964,000	9,000	0.9
         Gross profit	181,000	183,000	2,000	1.1
         Operating income	39,500	40,700	1,200	3.0
         Ordinary income	38,500	40,600	2,100	5.5
         Profit attributable to owners of the parent	31,500	31,500	—	—

      2. Revised full-year earnings forecasts by segment (April 1, 2025 to March 31, 2026)

(Net sales by segment) (Millions of yen)

(Gross profit by segment) (Millions of yen)

(Operating income by segment) (Millions of yen)

(*) Full-year consolidated earnings forecast announced on May 8, 2025