Summary of Consolidated Financial Results for the Fiscal Year Ended December 31, 2025 (Based on Japan GAAP)

February 13, 2026

Company name: NICCA CHEMICAL CO., LTD.

Stock exchange listings: Tokyo Stock Exchange

Stock code: 4463

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

Representative: EMORI Yasumasa, Representative Director, President

Contact: SAWASAKI Shoya, Director, Member of the Board, Head of Administration Unit

TEL: +81 776-24-0213

Scheduled date for ordinary general meeting of shareholders:

March 26, 2026

Scheduled date for dividend payment: March 27, 2026 Scheduled date for submission of securities report: March 25, 2026 Supplementary materials for financial summaries: Yes

Financial results briefing: Yes

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2025 (from January 01, 2025 to December 31, 2025)
   1. Consolidated operating results (Percentages indicate YoY changes)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      December 31, 2025	55,705	3.0	3,847	9.3	3,849	(3.2)	2,384	(13.4)
      December 31, 2024	54,099	7.8	3,519	72.6	3,976	57.2	2,754	62.9

      (Note) Comprehensive income For the fiscal year ending December 2025: 2,808 million yen ((39.3)%) For the fiscal year ended December 2024: 4,628 million yen (51.4%)

      	Basic earnings per share	Diluted earnings per share	Rate of return on equity	Ordinary income to total assets ratio	Net sales Operating profit margin
      Fiscal year ended	Yen	Yen	%	%	%
      December 31, 2025	150.28	-	6.9	5.6	6.9
      December 31, 2024	174.17	-	8.6	6.7	6.5

      (Reference) Investment profit (loss) on equity method For the fiscal year ending December 2025: 19 million yen For the fiscal year ended December 2024: 18 million yen

   2. Consolidated financial positions

      	Total assets	Net assets	Equity to total assets ratio	Net assets per share
      As of	Million yen	Million yen	%	Yen
      December 31, 2025	74,052	38,354	47.5	2,211.79
      December 31, 2024	62,366	36,553	54.0	2,125.60

      (Reference) Owner's equity Fiscal year ending December 2025: 35,202 million yen Fiscal year ended December 2024: 33,650 million yen

   3. Consolidated cash flows

      	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and equivalents, end of period
      Fiscal year ended	Million yen	Million yen	Million yen	Million yen
      December 31, 2025	5,542	(11,539)	7,384	10,402
      December 31, 2024	6,033	(5,137)	(328)	8,881

2. Cash dividends

   	Annual dividends per share					Total dividends (aggregate)	Payout ratio (Consolidated)	Ratio of dividends to net assets (consolidated)
   	End of first quarter	End of second quarter	End of the third quarter	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Million yen	%	%
   Fiscal year ended December 31, 2024	-	25.00	-	27.00	52.00	842	29.9	2.5
   Fiscal year ended December 31, 2025	-	30.00	-	30.00	60.00	978	39.9	2.8
   Fiscal year ending December 31, 2026 (Forecast)	-	35.00	-	35.00	70.00		39.7

3. Consolidated Earnings Forecasts for the Fiscal Year Ending December 31, 2026 (from January 01, 2026 to December 31,

(Percentages indicate YoY changes)

• Notes

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

  2. Changes in accounting policies, Changes in accounting estimates, Retrospective restatement

     1. Changes in accounting policies due to revisions of accounting standards: None

     2. Changes in accounting policies other than (i): None

     3. Changes in accounting estimates : None

     4. Retrospective restatement : None

  3. Number of shares issued (common stock)

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

        As of December 31, 2025	17,710,000 shares
        As of December 31, 2024	17,710,000 shares

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

        As of December 31, 2025	1,794,367 shares
        As of December 31, 2024	1,879,105 shares

     3. Average number of shares outstanding during the period

     Fiscal year ended December 31, 2025	15,866,591 shares
     Fiscal year ended December 31, 2024	15,817,553 shares

     (Reference) Overview of Non-consolidated Results

     1. Non-consolidated financial results for the fiscal year ended December 31, 2025 (from January 01, 2025 to December 31, 2025)
        1. Non-consolidated operating results (Percentages indicate YoY changes)

           	Net sales		Operating profit		Ordinary profit		Net income
           Fiscal year ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
           December 31, 2025	25,272	(0.5)	384	244.1	1,695	(8.7)	1,387	(25.0)
           December 31, 2024	25,401	2.5	111	25.4	1,857	32.4	1,851	55.7

           	Basic earnings per share	Diluted earnings per share
           Fiscal year ended	Yen	Yen
           December 31, 2025	87.46	-
           December 31, 2024	117.03	-

        2. Non-consolidated financial positions

           	Total assets	Net assets	Equity to total assets ratio	Net assets per share
           As of	Million yen	Million yen	%	Yen
           December 31, 2025	51,933	19,300	37.2	1,212.68
           December 31, 2024	41,797	18,629	44.6	1,176.81

           (Reference) Owner's equity Fiscal year ending December 2025: 19,300 million yen Fiscal year ended December 2024: 18,629 million yen

           • Financial results reports are not subject to audits by certified public accountants or audit corporations.

           • Notes regarding the appropriate use of forecasts and other special items (Cautionary Statement Regarding Forward-Looking Statements)

           Forward-looking statements such as performance forecasts contained in this document are based on information currently available to the Company and on certain assumptions that are deemed reasonable. They are not intended as a guarantee of achievement by the Company. Actual results may differ significantly due to various factors. For the conditions underlying the forecasts and notes on the use of forecasts, please refer to the attached document on page 4, "1. Overview of Operating Results, etc.

  4. Outlook for the Future."

Table of Contents of Attached Materials

1. Overview of Operating Results, etc. 2

   1. Overview of operating results for the period 2

   2. Overview of the financial position for the period 3

   3. Overview of Cash Flows for the Period 3

   4. Future Outlook 4

   5. Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years 4

2. Basic policy regarding the selection of accounting standards 4

3. Consolidated Financial Statements and Main Notes 5

   1. Consolidated Balance Sheet 5

   2. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income 7

      Consolidated Statement of Profit or Loss 7

      Consolidated Statement of Comprehensive Income 8

   3. Consolidated Statement of Changes in Shareholders' Equity, etc. 9

   4. Consolidated Statement of Cash Flows 11

   5. Notes to Consolidated Financial Statements 12

(Notes regarding the assumption of a going concern) 12

(Notes on segment information, etc.) 12

(Notes on per share information) 16

(Notes on significant subsequent events) 16

1. Overview of Operating Results, etc.

   1. Overview of operating results for the period Operating results for the period

      For the fiscal year ended December 31, 2025, the global economy remained unstable amid ongoing geopolitical risks, fluctuations in energy and resource prices, and trends in monetary policies of various countries. In the United States, uncertainty surrounding the policy management of the new administration was noted, while in major countries, monetary policy adjustments were made in response to inflation trends, and fluctuations in interest rates and exchange rates affected the global economy. On the other hand, the Japanese economy maintained a moderate recovery trend, supported by a rebound in personal consumption and an increase in inbound demand. However, the outlook remains uncertain due to continued price increases, fluctuations in exchange rates and long-term interest rates, and concerns about a slowdown in overseas economies.

      Amid such circumstances, our group, based on our corporate purpose of "Activate Your Life," has set forth the medium- to long-term growth vision of becoming 'the most trusted innovation company by customers around the world.' Under this purpose and vision, we have been working to promote our three-year medium-term management plan "INNOVATION25" (2023-2025), focusing on five major strategies: "drastic transformation of business structure," "selective and focused investment," "productivity reform," "promotion of sustainable management," and "evolution of the big family principle."

      As a result, for the final year of the Medium-Term Management Plan "INNOVATION25," net sales were 55,705 million yen (up 3.0% YoY), operating profit was 3,847 million yen (up 9.3% YoY), ordinary profit was 3,849 million yen (down 3.2% YoY), and profit attributable to owners of parent was 2,384 million yen (down 13.4% YoY).

      Overview of Segment Results

      The performance of each segment is as follows. Please note that the Net sales of each segment mentioned in the text do not include internal Net sales between segments.

      [Chemicals Business]

      In addition to textile processing agents, which are the main products of our group, the chemicals business includes agents for information recording paper, resin materials, industrial cleaning agents, agents for medical and nursing care facilities, and other functional chemicals.

      Net sales were 39,894 million yen (up 1.3% YoY), and segment profit was 3,948 million yen (up 6.0% YoY).

      In our core textile chemicals business, although the operations of overseas textile processing plants, which are our customers, slowed down due to the impact of the Trump tariffs, sales increased mainly at our China base through the growth of high value-added EHD-related finished goods, including fluorine-free water repellents, and the acquisition of new business. In addition, sales of electronic materials-related process chemicals also increased due to a partial recovery in the semiconductor market and the acquisition of new business. As a result of these sales increases, although selling, general and administrative expenses rose, the chemicals business achieved both higher sales and profits, and net sales, segment profit, and segment profit margin all reached record highs.

      [Cosmetics Business]

      The cosmetics business mainly handles hair care products, hair color products, perm products, scalp care products, and styling products.

      Net sales were 15,259 million yen (up 6.9% YoY), and segment profit was 1,966 million yen (up 7.9% YoY).

      At our company, Demicosmetics, despite the continued challenging salon environment due to prolonged customer visit cycles caused by extreme heat and rising prices, we achieved steady performance through the expansion of our mainstay hair care and other key merchandise. Among consolidated subsidiaries, although DEMI KOREA CO., LTD. experienced a decrease in net sales due to deteriorating market conditions, the contract business at Yamada Pharmaceutical Co., Ltd. performed well. As a result, the cosmetics business recorded both increased sales and profits, with net sales reaching a record high.

      [Other Businesses]

      Net sales were 550 million yen (up 22.5% YoY), and segment profit was 90 million yen (up 53.9% YoY).

   2. Overview of the financial position for the period

      As for assets at the end of the current consolidated fiscal year, they increased by 11,686 million yen compared to the end of the previous consolidated fiscal year, reaching 74,052 million yen. The main factors for this were an increase of 1,122 million yen in cash and deposits, and an increase of 9,632 million yen in property, plant and equipment.

      As for liabilities, compared to the end of the previous consolidated fiscal year, they increased by 9,885 million yen to 35,697 million yen. The main factors for this were an increase of 5,002 million yen in short-term borrowings and an increase of 3,632 million yen in long-term borrowings.

      As for net assets, compared to the end of the previous consolidated fiscal year, they increased by 1,800 million yen to 38,354 million yen. The main factors for this were an increase of 1,460 million yen in retained earnings and an increase of 325 million yen in foreign currency translation adjustment.

   3. Overview of Cash Flows for the Period

      At the end of the fiscal year, consolidated cash and cash equivalents (hereinafter referred to as "funds") increased by 1,520 million yen compared to the previous fiscal year, amounting to 10,402 million yen, as a result of net cash provided by operating activities of 5,542 million yen, net cash used in investing activities of 11,539 million yen, and net cash provided by financing activities of 7,384 million yen.

      The cash flows for the fiscal year and their respective factors are as follows.

      (Cash flows from operating activities)

      Funds obtained from operating activities amounted to 5,542 million yen.

      This is mainly due to factors such as net income before income taxes of 4,000 million yen, depreciation of 2,128 million yen, a decrease in funds of 440 million yen due to an increase in inventories, and a decrease in funds of 321 million yen due to a decrease in retirement benefit liability.

      (Cash flows from investing activities)

      Funds used as a result of investing activities amounted to 11,539 million yen.

      This was mainly due to proceeds from withdrawal of time deposits of 3,111 million yen, payments into time deposits of 2,690 million yen, and purchase of property, plant and equipment of 11,907 million yen.

      (Cash flows from financing activities)

      Funds obtained from financing activities amounted to 7,384 million yen.

      This was mainly due to net proceeds from borrowings of 8,486 million yen, payment of dividends of 901 million yen, and payment of dividends to non-controlling interests of 112 million yen.

      (Reference) Trends in cash flow-related indicators

      	Fiscal year ended December 31, 2021	Fiscal year ended December 31, 2022	Fiscal year ended December 31, 2023	Fiscal year ending December 31, 2024	Fiscal year ending December 2025
      Equity to total assets ratio (%)	45.9	49.8	52.9	54.0	47.5
      Equity to total assets ratio (market value basis) (%)	27.1	26.2	29.7	32.2	37.1
      Debt redemption period (years)	2.5	4.5	2.3	1.6	3.3
      Interest coverage ratio (times)	105.8	64.1	130.4	145.9	44.8

      *Each indicator is calculated based on the following criteria. Equity to total assets ratio: Owner's equity / Total assets

      Market value-based Equity to total assets ratio: Market capitalization (closing share price at period-end × number of shares outstanding at period-end) / total assets

      Debt redemption years: Interest-bearing liabilities (Bonds payable, short-term and long-term borrowings) / Operating cash flow Interest coverage ratio: Operating cash flow / Interest expenses

   4. Future Outlook

      Under our corporate purpose of "Activate Your Life" and our management vision of becoming " To be the most respected innovation company for customers all over the world," our group formulated a "Group Growth Path: A Medium- to Long-Term Perspective" in July 2024 to achieve management that is more conscious of capital costs and stock price. As our vision for 2035, we have set a key target of achieving ROE of 10% or higher, and have also introduced PBR and DOE as new management target indicators.

      In addition, as the first phase, we have formulated the medium-term management plan "INNOVATION30" (2026-2030), which outlines specific strategies through 2030. The basic strategies are "Business Expansion and Investment for growth," "Strengthening Financial and Capital Strategies," and "Sustainability Management."

      Based on the current medium-term management plan, the consolidated earnings forecast for the fiscal year ending December 2026 is as follows: Net sales 58,500 million yen, Operating profit 4,200 million yen, Ordinary profit 4,050 million yen, Profit attributable to owners of parent 2,800 million yen.

      Regarding the assumed exchange rate for the fiscal year ending December 2026, based on recent trends and developments in the financial and capital markets, we have set the assumption at 150 yen per US dollar.

      Please note that, due to uncertainties arising from domestic and international social conditions, fluctuations in raw material prices, and changes in financial and capital markets that may affect business activities, we have refrained from providing interim forecasts, which are difficult to estimate, and are only disclosing full-year forecasts.

      We will continue to transform the rapidly changing business environment into business opportunities and focus on businesses that provide increasingly essential value to society, aiming for sustainable growth.

   5. Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years

      We are committed to continuing to provide stable dividends to our shareholders. In addition, we carefully consider our performance, necessary investments for future growth, and upcoming business developments. Based on these comprehensive evaluations, we determine the distribution of surplus funds according to the following policy.

      ・We aim to increase our annual dividend to a DOE (Dividend on Equity) of 3.0% and will continue to explore further improvements

      in DOE thereafter.

      ・Our annual dividend policy will be a progressive dividend, ensuring more stable dividends (maintenance or increase) through profit growth.

      Moving forward, we will strive to enhance shareholder returns while balancing "returning profits to shareholders," "maintaining a

      stable financial structure," and "effective and strategic use of capital aimed at improving profitability."

      In addition, our basic policy is to pay dividends from surplus twice a year, as interim and year-end dividends. The decision-making body for these dividends is the Board of Directors for interim dividends and the General Meeting of Shareholders for year-end dividends.

      Regarding the interim dividend for the fiscal year ending December 2025, an ordinary dividend of 30 yen per share was paid. In addition, for the year-end dividend, based on our shareholder return policy, we plan to pay a dividend of 30 yen per share (ordinary dividend of 30 yen). As a result, the annual dividend for this fiscal year is expected to be 60 yen per share (ordinary divid end of 60 yen).

      Regarding the dividend for the fiscal year ending December 2026, based on our shareholder return policy, we plan to pay an annual dividend of 70 yen per share.

2. Basic policy regarding the selection of accounting standards

   Our group, taking into consideration the comparability of consolidated financial statements over periods and among companies, intends to prepare consolidated financial statements based on Japanese GAAP for the time being.

   Regarding the application of International Financial Reporting Standards, we intend to respond appropriately while taking into consideration both domestic and international circumstances.

3. Consolidated Financial Statements and Main Notes (1) Consolidated Balance Sheet

1. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income (Consolidated Statement of Income)

   		(Unit: Million yen)
   Previous fiscal year (From January 1, 2024 until December 31, 2024		For the fiscal year From January 1, 2025 until December 31, 2025
   Net sales	54,099	55,705
   Cost of sales	34,807	35,507
   Gross profit	19,291	20,197
   Selling, general and administrative expenses	15,772	16,350
   Operating profit	3,519	3,847
   Non-operating income
   Interest income	91	113
   Dividend income	43	53
   Share of income of investments accounted for using the equity method	18	19
   Foreign exchange gains	147	-
   Other	301	252
   Total non-operating income	602	438
   Non-operating expenses
   Interest expense	41	124
   Foreign exchange losses	-	121
   Commission expenses	-	147
   Others	104	43
   Total non-operating expenses	145	436
   Ordinary profit	3,976	3,849
   Extraordinary income
   Gain on sale of non-current assets	4	137
   Gain on sale of investment securities	-	20
   Total extraordinary income	4	158
   Extraordinary losses
   Loss on retirement of fixed assets	3	6
   Loss on sale of non-current assets	0	0
   Loss on sale of investment securities	0	-
   Loss on cancellation of rental contracts	73	-
   Total extraordinary losses	76	7
   Net income before income taxes	3,904	4,000
   Income taxes - current	1,010	986
   Income taxes - deferred	(134)	316
   Total income taxes	875	1,303
   Net income	3,029	2,697
   Net income attributable to non-controlling interests	274	312
   Profit attributable to owners of parent	2,754	2,384

   (Consolidated Statement of Comprehensive Income)

   		(Unit: Million yen)
   Previous fiscal year (From January 1, 2024 until December 31, 2024		For the fiscal year From January 1, 2025 until December 31, 2025
   Net income	3,029	2,697
   Other comprehensive income (loss), net of tax
   Valuation difference on available-for-sale securities	124	109
   Foreign currency translation adjustment	1,198	452
   Remeasurements of defined benefit plans, net of tax	277	(450)
   Other comprehensive income, net of tax	1,599	111
   Comprehensive income	4,628	2,808
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	4,134	2,368
   Comprehensive income attributable to non-controlling interests	493	440

2. Consolidated Statement of Changes in Shareholders' Equity, etc.

   For the previous fiscal year (from January 1, 2024 to December 31, 2024)

   (Unit: Million yen)
   	Shareholders' equity
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
   Balance at the beginning of the period	2,898	2,951	22,145	(1,429)	26,566
   Changes during period
   Cash dividends			(648)		(648)
   Profit attributable to owners of parent			2,754		2,754
   Acquisitions of treasury shares					-
   Treasury shares sold				22	22
   Change in ownership interest of parent due to transactions with non- controlling interests		8			8
   Net changes during the period in items other than shareholders' equity
   Total changes during period	-	8	2,106	22	2,137
   Balance at end of period	2,898	2,960	24,251	(1,407)	28,703

   	Accumulated other comprehensive income				Non-controlling interests	Total net assets
   	Valuation difference on available-for-sale securities	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
   Beginning balance of the period	595	3,140	(169)	3,567	2,689	32,822
   Changes during period
   Cash dividends						(648)
   Profit attributable to owners of parent						2,754
   Acquisitions of treasury shares						-
   Treasury shares sold						22
   Change in ownership interest of parent due to transactions with non-controlling interests						8
   Net changes during the period other than shareholders' equity	124	978	276	1,379	213	1,593
   Total changes during period	124	978	276	1,379	213	3,731
   Balance at end of period	719	4,119	107	4,946	2,903	36,553

   For the fiscal year ended December 31, 2025

   (Unit: Million yen)
   	Shareholders' equity
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
   Balance at the beginning of the period	2,898	2,960	24,251	(1,407)	28,703
   Changes during period
   Cash dividends			(923)		(923)
   Profit attributable to owners of parent			2,384		2,384
   Acquisitions of treasury shares				(144)	(144)
   Treasury shares sold		91		149	241
   Change in ownership interest of parent due to transactions with non- controlling interests		9			9
   Net changes during the period in items other than shareholders' equity
   Total changes during period	-	101	1,460	5	1,567
   Balance at end of period	2,898	3,061	25,712	(1,401)	30,271

   	Accumulated other comprehensive income				Non-controlling interests	Total net assets
   	Valuation difference on available-for-sale securities	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
   Balance at the beginning of the period	719	4,119	107	4,946	2,903	36,553
   Changes during period
   Cash dividends						(923)
   Profit attributable to owners of parent						2,384
   Acquisitions of treasury shares						(144)
   Treasury shares sold						241
   Change in ownership interest of parent due to transactions with non-controlling interests						9
   Net changes during the period in items other than shareholders' equity	109	325	(451)	(15)	249	233
   Total changes during period	109	325	(451)	(15)	249	1,800
   Balance at end of period	829	4,445	(343)	4,931	3,152	38,354

3. Consolidated Statement of Cash Flows

   		(Unit: Million yen)
   Previous fiscal year (From January 1, 2024 until December 31, 2024		For the fiscal year From January 1, 2025 until December 31, 2025
   Cash flows from operating activities
   Net income before income taxes	3,904	4,000
   Depreciation	2,224	2,128
   Increase (decrease) in liabilities for retirement benefits	(64)	(321)
   Increase (decrease) in provision for bonuses	127	83
   Interest income and dividends income	(134)	(167)
   Interest expense	41	124
   Commission expenses	-	147
   Share of loss (profit) of investments accounted for using the equity method	(18)	(19)
   Loss (gain) on sale of fixed assets	(4)	(137)
   Decrease (increase) in trade receivables	(603)	144
   (Increase) decrease in inventories	637	(440)
   Increase (decrease) in trade payables	68	142
   Other	499	906
   Subtotal	6,677	6,590
   Interest and dividends received	151	198
   Interest paid	(45)	(125)
   Income taxes paid	(749)	(1,121)
   Cash flows from operating activities	6,033	5,542
   Cash flows from investing activities
   Payments into time deposits	(2,685)	(2,690)
   Proceeds from withdrawal of time deposits	1,261	3,111
   Purchase of property and equipment	(3,626)	(11,907)
   Proceeds from sales of property and equipment	31	143
   Purchase of investment securities	(17)	(20)
   Proceeds from the sale of investment securities	0	35
   Subsidies received	-	397
   Others	(101)	(610)
   Cash flows from investing activities	(5,137)	(11,539)
   Cash flows from financing activities
   Proceeds from short-term borrowings	79,723	82,686
   Repayments of short-term borrowings	(79,523)	(77,684)
   Repayments of finance lease liabilities	(41)	(19)
   Proceeds from long-term borrowings	2,000	4,852
   Repayment of long-term borrowings	(1,568)	(1,368)
   Payment for acquisition of subsidiaries resulting in no change in scope of consolidation	(127)	(69)
   Proceeds from sale of subsidiaries resulting in no change in scope of consolidation	59	-
   Cash dividends paid	(647)	(901)
   Dividends paid to non-controlling interests	(202)	(112)
   Cash flows from financing activities	(328)	7,384
   Effect of exchange rate change on cash and cash equivalents	335	133
   Increase (decrease) in cash and cash equivalents	903	1,520
   Cash and cash equivalents at the beginning of the period	7,977	8,881
   Cash and cash equivalents at end of the period	8,881	10,402

4. Notes to Consolidated Financial Statements

   (Notes regarding the assumption of a going concern) There are no applicable items.

   (Notes on segment information, etc.)

   [Segment Information]

   1. Overview of Reporting Segments

      The reportable segments of our group are those components for which separate financial information is available and which are subject to regular review by the Board of Directors for the purpose of making decisions regarding the allocation of managemen t resources and evaluating performance.

      Our group has established a Chemicals Division and a Cosmetics Division at the head office, organized by finished goods and services. Each division formulates comprehensive domestic and overseas strategies for the finished goods and services it handles, and conducts business activities accordingly.

      Accordingly, our group has designated the "Chemicals Business" and the "Cosmetics Business" as its two reportable segments. The "Chemicals Business" is engaged in the production and sale of textile chemicals, specialty chemicals, cleaning and medical agents, functional chemicals, and advanced materials, while the "Cosmetics Business" is engaged in the production and sale of hair care products, hair colorants, perm agents, scalp care products, and styling agents.

   2. Method of calculating amounts for Net sales, profit or loss, assets, and other items by reportable segment

      The accounting methods for the reported business segments are in accordance with the accounting policies adopted for the preparation of the consolidated financial statements.

      The profit of the reporting segments is based on operating profit.

      Internal net sales and transfers between segments are based on market prices.

   3. Information on net sales, profit or loss, assets, and other items by reportable segment For the fiscal year ended December 31, 2024

      (Unit: Million yen)
      	Reportable segment			Other (Note)	Total
      	Chemicals	Cosmetics	Total
      Net sales
      Net sales to external customers	39,378	14,271	53,649	449	54,099
      Internal net sales or transfers between segments	-	2	2	256	258
      Total	39,378	14,273	53,651	706	54,357
      Segment profit	3,724	1,822	5,546	58	5,605
      Segment Assets	44,387	14,505	58,893	1,082	59,975
      Other items
      Depreciation	1,699	408	2,108	0	2,108
      Investment in equity-method affiliates	202	-	202	-	202
      Increase in property, plant and equipment and intangible assets	838	3,247	4,086	68	4,154

      (Note) The category of "Others" refers to business segments not included in the reportable segments, and includes equipment contracting work.

      For the fiscal year ended December 31, 2025

      (Unit: Million yen)
      	Reportable segments			Other (Note)	Total
      	Chemicals	Cosmetics	Total
      Net sales
      Net sales to external customers	39,894	15,259	55,154	550	55,705
      Internal net sales or transfers between segments	1	3	5	223	228
      Total	39,896	15,262	55,159	774	55,933
      Segment profit	3,948	1,966	5,915	90	6,006
      Segment Assets	45,865	24,971	70,836	816	71,653
      Other items
      Depreciation	1,657	362	2,020	2	2,022
      Investment in equity-method affiliates	189	-	189	-	189
      Increase in property, plant and equipment and intangible assets	1,648	10,438	12,087	0	12,088

      (Note) The category of 'Others' refers to business segments not included in the reportable segments, and includes equipment contracting work.

   4. Difference between the total amount of reportable segments and the amount recorded in the consolidated financial statements, and the main contents of such difference (Matters related to reconciliation of differences)

(Unit: Million yen)

(Unit: Million yen)

(Note) Company-wide expenses mainly consist of general and administrative expenses that are not attributable to any reportable segment.

(Unit: Million yen)

(Note) Company-wide assets mainly consist of headquarters assets that are not attributable to any reportable segment.

(Unit: Million yen)

(Note) The adjustment amounts for the increase in property, plant and equipment and intangible assets represent capital expenditures for head office assets.

[Information on Impairment Losses on Non-current Assets by Reportable Segment] For the fiscal year ended December 31, 2024

There are no applicable items.

For the fiscal year ended December 31, 2025 There are no applicable items.

[Information on Amortization and Unamortized Balances of Goodwill by Reportable Segment] For the fiscal year ended December 31, 2024

There are no applicable items.

For the fiscal year ended December 31, 2025 There are no applicable items.

[Information on Gain on Bargain Purchase by Reportable Segment] For the fiscal year ended December 31, 2024

There are no applicable items.

For the fiscal year ended December 31, 2025 There are no applicable items.

(Notes on per share information)

(Note) 1. Diluted earnings per share is not presented as there are no potential shares outstanding.

1. The basis for the calculation of basic earnings per share is as follows.

   	Previous fiscal year (From January 1, 2024 until December 31, 2024	For the fiscal year From January 1, 2025 until December 31, 2025
   Basic earnings per share
   Profit attributable to owners of parent (million yen)	2,754	2,384
   Amount not attributable to common shareholders (million yen)	-	-
   Profit attributable to owners of parent related to common stock (million yen)	2,754	2,384
   Average number of common shares (thousand shares)	15,817	15,866

2. The shares of the Company held by the stock compensation trust are included in Treasury shares, which are deducted from the total number of shares issued at the end of the period for the calculation of "Net assets per share" (370 thousand shares in the previous consolidated fiscal year, 436 thousand shares in the current consolidated fiscal year).

In addition, for the calculation of "Basic earnings per share," treasury shares are included in the deduction from the average number of shares (384 thousand shares in the previous fiscal year, 366 thousand shares in the current fiscal year).

(Notes on significant subsequent events) There are no applicable items.