Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year 2025(Based on Japanese GAAP)

October 31, 2025

Company name: NICCA CHEMICAL CO., ltd.

Stock exchange listings: Tokyo Stock Exchange

Stock code: 4463

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

Representative: Yasuaki Emori, President and Representative Director

Contact: Shoya Sawazaki, Director, Executive Officer, Head of Administration Division

TEL: +81 776-24-0213

Scheduled date for dividend payment:

Supplementary materials for financial summaries:

Yes

Financial results briefing: None

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

1. Consolidated Financial Results for the Nine Months of the Fiscal Year Ending December 31, 2025 (from January 01, 2025 to September 30, 2025)
   1. Consolidated operating results (Cumulative) (Percentage indicate YoY changes)

      	Revenue		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Nine months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      September 30, 2025	41,217	4.4	2,901	15.7	2,759	(2.8)	1,613	(12.7)
      September 30, 2024	39,476	5.4	2,508	88.6	2,839	56.3	1,848	81.6

      (Note) Comprehensive income For the nine months ended December 31, 2025: 766 million yen ((66.0) %) For the nine months ended December 31, 2024: 2,253 million yen ((17.3) %)

      	Basic earnings per share	Diluted earnings per share
      Nine months ended	Yen	Yen
      September 30, 2025	101.76	-
      September 30, 2024	116.89	-

   2. Consolidated financial positions

      	Total assets	Equity	Equity to total assets ratio	Net assets per share
      As of	Million yen	Million yen	%	Yen
      September 30, 2025	66,489	36,411	50.2	2,098.47
      December 31, 2024	62,366	36,553	54.0	2,125.60

      (Reference) Owner's equity As of the third quarter of the fiscal year ending December 2025: 33,396 million yen As of the fiscal year ended December 2024: 33,650 million yen

2. Cash dividends

   	Annual dividends per share
   	End of first quarter	End of second quarter	End of the third quarter	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended December 31, 2024	-	25.00	-	27.00	52.00
   Fiscal year ending December 31, 2025	-	30.00	-
   Fiscal year ending December 31, 2025 (Forecast)				30.00	60.00

   (Note) Presence or absence of revisions from the most recently announced dividend forecast: None

3. Consolidated Earnings Forecasts for the Fiscal Year Ending December 31, 2025 (from January 01, 2025 to December 31,

(Percentages indicate YoY changes)

(Note) Correction of financial forecast from the most recent financial forecast: None

• Notes

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

  2. Applying of specific accounting of the consolidated quarterly financial statements: Yes

  3. 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

  4. Number of shares issued (common stock)

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

   As of September 30, 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 September 30, 2025	1,795,367 shares
   As of December 31, 2024	1,879,105 shares

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

※ Review of attached consolidated quarterly financial statements by a certified public accountant or an audit firm: None

Note: Explanation regarding the appropriate use of forecasts and other special notes (Cautionary Statement Regarding Forward-Looking Statements)

The forward-looking statements, including earnings forecasts, contained in this document are based on information currently available to the Company and on certain assumptions deemed reasonable. They are not intended as a guarantee of achievement. Actual results may differ significantly due to various factors in the future.

• Table of Contents for Attached Materials

1. Overview of operating results, etc. 2

   1. Overview of operating results for the quarter 2

   2. Overview of financial positions for the quarter 3

   3. Explanation regarding forward-looking statements such as consolidated forecasts 3

2. Quarterly Consolidated Financial Statements and Main Notes 4

   1. Quarterly Consolidated Balance Sheet 4

   2. Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income 6

   3. Notes to the quarterly consolidated financial statements 8

(Notes on specific accounting treatments for the preparation of quarterly consolidated financial statements) 8

(Notes on segment information, etc.) 9

(Notes on significant changes in the amount of shareholders' equity) 11

(Notes regarding the assumption of a going concern) 11

(Notes on quarterly consolidated statement of cash flows) 11

1. Overview of Operating Results, etc.

   1. Overview of operating results for the quarter

      For the nine months ended September 30, 2025, the global economy continued to face instability due to persistently high geopolitical risks surrounding the situations in Ukraine and the Middle East, as well as fluctuations in crude oil and resource prices. In addition, the outlook for the global economy remained uncertain, reflecting the impact of protectionist policies such as reciprocal tariffs under the Trump administration in the United States, as well as trends in monetary policy and exchange rate fluctuations in major countries. On the other hand, the Japanese economy maintained a moderate recovery trend, supported by a rebound in personal consumption and a recovery in inbound demand. However, concerns about a slowdown in overseas economies and the impact of U.S. tariff policies have left uncertainty regarding the future outlook.

      Under these circumstances, our group has established the corporate purpose of "Activate Your Life" (to solve various social issues together with stakeholders through the infinite potential of interface chemistry, thereby contributing to a richer life and a brighter future). Based on this purpose and our medium- to long-term growth vision of becoming 'the most trusted innovation company by customers worldwide,' we have formulated the three-year medium-term management plan 'INNOVATION25' (2023-2025). Currently, we are working to promote the five key strategies of the medium-term management plan: 'drastic business structure transformation,' 'focused investment,' 'productivity reform,' 'promotion of sustainable management,' and 'evolution of the big family principle.'

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

      For the nine months ended September 30, 2025, which is the final year of the three-year medium-term management plan 'INNOVATION25', net sales were 41,217 million yen (up 4.4% YoY), operating profit was 2,901 million yen (up 15.7% YoY), ordinary profit was 2,759 million yen (down 2.8% YoY), and profit attributable to owners of parent was 1,613 million yen (down 12.7% YoY).

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

      (Chemicals Business)

      Net sales were 29,475 million yen (up 1.3% YoY), and segment profit was 2,979 million yen (up 5.9% YoY).

      In our core textile chemicals business, the operation of overseas textile processing plants, which are our customers, slowed down due to the impact of the Trump tariffs. However, sales increased, particularly at our China base, driven by growth in high value-added EHD-related finished goods such as fluorine-free water repellents and process rationalization agents, as well as 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.

      Although selling, general and administrative expenses increased due to the growth in these sales, the chemicals business recorded both higher revenue and profit.

      (Cosmetics Business)

      Net sales were 11,344 million yen (up 11.7% YoY), and segment profit was 1,430 million yen (up 24.0% YoY).

      At our company, Demicosmetics, despite the continued uncertainty in the domestic economy due to factors such as rising prices and the challenging salon environment caused by a decrease in customer visits due to the extreme heat, we maintained steady performance through the expansion of our main hair care products and new merchandise. Among consolidated subsidiaries, although sales at DEMI KOREA CO., LTD. declined due to deteriorating market conditions, the contract business at Yamada Pharmaceutical Co., Ltd. performed well.

      As a result, the cosmetics business recorded increases in both revenue and profit. (Others)

      Net sales were 397 million yen (up 68.9% YoY), and segment profit was 50 million yen (compared to a segment loss of 5 million yen in the same period of the previous year).

   2. Overview of financial positions for the quarter ( Assets)

      As for the total assets at the end of the third quarter of the consolidated fiscal period, they increased by 4,123 million yen compared to the end of the previous consolidated fiscal year, reaching 66,489 million yen. The main factors for this were a decrease of 1,216 million yen in notes and accounts receivable - trade, and contract assets, while cash and deposits increased by 607 million yen, and other (net) in property, plant and equipment increased by 4,791 million yen.

      ( Liabilities)

      As for the total liabilities at the end of the third quarter of the consolidated fiscal period, it increased by 4,265 million yen compared to the end of the previous consolidated fiscal year, reaching 30,078 million yen. The main reasons for this were an increase of 3,192 million yen in short-term borrowings and an increase of 724 million yen in long-term borrowings.

      ( Net assets)

      As for the total net assets at the end of the third quarter of the consolidated fiscal period, it decreased by 142 million yen compared to the end of the previous consolidated fiscal year, amounting to 36,411 million yen. The main factors for this were an increase in retained earnings by 709 million yen, while foreign currency translation adjustment decreased by 665 million yen and remeasurements of defined benefit plans decreased by 472 million yen.

   3. Explanation regarding consolidated forecasts and other forward-looking statements

      No revisions have been made to the consolidated forecasts announced on July 31, 2025.

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

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

   (Nine months ended)

   (Unit: Million yen)
   For the nine months ended [previous period end date] From January 1, 2024 until September 30, 2024	For the nine months ended From January 1, 2025 until September 30, 2025
   Revenue	39,476	41,217
   Cost of sales	25,357	26,347
   Gross profit	14,119	14,870
   Selling, general and administrative expenses	11,610	11,969
   Operating profit	2,508	2,901
   Non-operating income
   Interest income	55	80
   Dividend income	24	30
   Share of income of investments accounted for using the equity method	12	15
   Foreign exchange gains	51	-
   Other	238	132
   Total non-operating income	382	259
   Non-operating expenses
   Interest expense	29	84
   Foreign exchange losses	-	137
   Commission expenses	-	141
   Other	22	38
   Total non-operating expenses	51	401
   Ordinary profit	2,839	2,759
   Extraordinary income
   Gain on sale of non-current assets	2	135
   Total extraordinary income	2	135
   Extraordinary losses
   Loss on retirement of fixed assets	4	3
   Loss on sale of non-current assets	0	0
   Loss on sale of investment securities	0	-
   Total extraordinary losses	4	3
   Net income before income taxes	2,837	2,890
   Income taxes	769	1,024
   Net income	2,067	1,866
   Net income attributable to non-controlling interests	219	253
   Profit attributable to owners of parent	1,848	1,613

   (Quarterly Consolidated Statement of Comprehensive Income) (Nine months ended)

   (Unit: Million yen)
   For the nine months ended [previous period end date] From January 1, 2024 until September 30, 2024	For the nine months ended From January 1, 2025 until September 30, 2025
   Net income	2,067	1,866
   Other comprehensive income (loss), net of tax
   Valuation difference on available-for-sale securities	81	79
   Foreign currency translation adjustment	78	(707)
   Remeasurements of defined benefit plans, net of tax	26	(471)
   Other comprehensive income, net of tax	186	(1,100)
   Comprehensive income	2,253	766
   Comprehensive income attributable to
   Quarterly comprehensive income attributable to owners of the parent	1,982	553
   Quarterly comprehensive income attributable to non-controlling interests	270	213

2. Notes to the quarterly consolidated financial statements

   (Notes on accounting treatments specific to the preparation of quarterly consolidated financial statements) (Calculation of tax expenses)

   For income tax expenses, the effective tax rate after applying tax effect accounting, reasonably estimated for the fiscal year including the third quarter of the current consolidated fiscal period, is applied to pre-tax Net income to calculate the tax expense. However, if calculating tax expenses using the estimated effective tax rate results in a significantly unreasonable outcome, the statutory effective tax rate is used instead.

   (Notes on segment information, etc.)

   I Previous nine months ended September 30, 2024

   1. Information on net sales and profit or loss by reportable segment

      (Unit: Million yen)
      	Reportable segment			Other (Note)	Total
      	Chemicals	Cosmetics	Total
      Revenue
      Net sales to external customers	29,083	10,157	39,241	235	39,476
      Internal net sales between segments or transfer amount	-	1	1	169	170
      Total	29,083	10,158	39,242	405	39,647
      Segment profit or loss (-)	2,813	1,153	3,967	(5)	3,961

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

   2. Difference between the total amount of profit or loss of reportable segments and the amount recorded in the quarterly consolidated statement of income, and the main contents of such difference (matters related to reconciliation of differences)

      (Unit: Million yen)

      Profit	Amount
      Total for reportable segments	3,967
      Profit or loss (-) in the "Others" category	(5)
      Elimination of inter-segment transactions	25
      Corporate expenses (Note)	(1,477)
      Operating profit in the quarterly consolidated statement of income	2,508

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

   3. Information on impairment losses of non-current assets or goodwill, etc. by reportable segment (Significant impairment losses related to non-current assets)

There are no applicable items.

(Significant changes in the amount of goodwill) There are no applicable items.

(Significant gain on bargain purchase) There are no applicable matters.

II For the nine months ended September 30, 2025

1. Information on net sales and profit or loss by reportable segment

   (Unit: Million yen)
   	Reportable segment			Other (Note)	Total
   	Chemicals	Cosmetics	Total
   Revenue
   Net sales to external customers	29,475	11,344	40,819	397	41,217
   Internal net sales between segments or transfer amount	1	3	4	158	163
   Total	29,477	11,347	40,824	555	41,380
   Segment profit or loss (-)	2,979	1,430	4,409	50	4,459

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

2. Difference between the total amount of profit or loss of reportable segments and the amount recorded in the quarterly consolidated statement of income, and the main contents of such difference (matters related to reconciliation of differences)

   (Unit: Million yen)

   Profit	Amount
   Total for reportable segments	4,409
   Profit or loss (-) in the "Other" category	50
   Elimination of inter-segment transactions	19
   Company-wide expenses (Note)	(1,577)
   Operating profit in the quarterly consolidated statement of income	2,901

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

3. Information on Impairment losses of Non-current assets or Goodwill, etc. by reportable segment (Significant impairment losses related to non-current assets)

There are no applicable items.

(Significant changes in the amount of goodwill) There are no applicable items.

(Significant gain on bargain purchase) There are no applicable items.

(Notes in case of significant changes in the amount of shareholders' equity) There are no applicable items.

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

(Notes on quarterly consolidated statement of cash flows)

The quarterly consolidated statement of cash flows for the nine months ended September 30 has not been prepared. Depreciation for the nine months ended September 30 (including amortization of intangible assets other than goodwill) is as follows.

For the nine months ended [previous

period end date] (From January 1, 2024

For the nine months ended From January 1, 2025

until September 30, 2025

until September 30, 2024

Depreciation 1,652 million yen 1,578 million yen