Nifco : Summary of Consolidated Financial Results for Fiscal Year Ending March 31, 2026

May 14, 2026

Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (Under Japanese GAAP)

Company name: Nifco Inc.

Listing: Tokyo Stock Exchange Securities code: 7988

URL: https://www.nifco.com/en/ Representative: Masaharu Shibao, President & CEO

Inquiries: Hiroshi Hamada, General Manager, Finance & Accounting Department Telephone: +81-3-5476-4853

Scheduled date of ordinary general meeting of shareholders: June 24, 2026 Scheduled date to commence dividend payments: June 25, 2026 Scheduled date to file annual securities report: June 23, 2026 Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)
   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      March 31, 2026	352,650	(0.1)	48,078	(2.3)	51,275	(1.7)	34,079	(23.9)
      March 31, 2025	353,038	(5.0)	49,200	12.0	52,147	5.0	44,767	145.3

      Note: Comprehensive income	For the fiscal year ended March 31, 2026:	¥40,048 million	[(26.1)%]
      	For the fiscal year ended March 31, 2025:	¥54,199 million	[77.8%]

      	Basic earnings per share	Diluted earnings per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2026	361.44	-	11.9	13.3	13.6
      March 31, 2025	461.95	-	17.3	13.7	13.9

      Note: Diluted earnings per share of the fiscal years ended March 31, 2026 and March 31, 2025 are not shown in the above table, as there are no potential common shares with dilution effect.

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of	Millions of yen	Millions of yen	%	Yen
      March 31, 2026	393,590	299,571	75.3	3,183.40
      March 31, 2025	379,816	278,725	72.4	2,888.37

      Reference: Equity

      As of March 31, 2026: ¥296,456 million As of March 31, 2025: ¥274,967 million

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
   March 31, 2026	47,163	(18,130)	(31,355)	141,659
   March 31, 2025	54,217	(23,891)	(35,154)	141,097

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Fiscal year ended March 31, 2025	-	35.00	-	40.00	75.00	7,211	16.2	2.8
   Fiscal year ended March 31, 2026	-	40.00	-	70.00	110.00	10,299	30.4	3.6
   Fiscal year ending March 31, 2027 (Forecast)	-	56.00	-	Note 28.00	-		30.7

   Note: At the Board of Directors meeting held on May 14, 2026, it was resolved to conduct a stock split at a ratio of 2 shares for each common share, with September 30, 2026 as the record date.

   The forecasted year-end dividend per share for the fiscal year ending March 2027 is presented after taking into account the effect of this stock split. Accordingly, the total annual dividend is shown as "-".

   For reference, if the stock split is not taken into consideration, the forecasted year-end dividend for the fiscal year ending March 2027 would be 56.00 yen per share, and the annual dividend would be 112.00 yen per share.

   The dividend amounts for the fiscal years ended March 2025 and March 2026 represent actual results prior to the stock split.

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027)

(Percentages indicate year-on-year changes.)

(Notes) 1. As the Company practices performance management on an annual basis, we have omitted the consolidated earnings forecasts for the second quarter (cumulative).

2. Basic earnings per share has been calculated taking into account the effect of the stock split described in the footnote to "2. Cash devidends".

For reference, if the stock split is not taken into consideration, basic earnings per share would be 365.10 yen.

* Notes

1. Significant changes in the scope of consolidation during the period: None Newly included: - company

   Excluded: - company

2. 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

3. Number of issued shares (common shares)

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

      As of March 31, 2026	100,232,614 shares
      As of March 31, 2025	100,257,053 shares

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

      As of March 31, 2026	7,106,925 shares
      As of March 31, 2025	5,058,850 shares

   3. Average number of shares outstanding during the period

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.

• Proper use of earnings forecasts, and other special matters

Forward-looking statements or projections included in this document, including earnings projections, are based on currently available information and certain premises that are judged to be rational at the time of this writing. Actual results may differ greatly from the forecast figures depending on various factors. For assumptions used for earnings forecasts and notes on the use of earnings forecasts, etc., please refer to "1. Overview of Operating Results, etc., (4) Future Outlook." on page 4 of the Attached Materials.

• Attached Materials Table of Contents

Index

1. Overview of Operating Results, Etc. 2

   1. Overview of Operating Results During the Period 2

   2. Overview of Financial Position During the Period 3

   3. Overview of Cash Flows During the Period 4

   4. Future Outlook 4

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

2. Corporate Group 6

3. Basic Stance Toward the Selection of Accounting Standards 7

4. Consolidated Financial Statements and Main Notes 8

   1. Consolidated Balance Sheet 8

   2. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income 10

   3. Consolidated Statement of Changes in Equity 12

   4. Consolidated Statement of Cash Flows 14

   5. Notes in Relation to the Consolidated Financial Statements 16

      • Notes regarding the going concern assumption 16

      • Changes in presentation 16

      • Notes on consolidated balance sheet 16

      • Notes on consolidated statements of income and comprehensive income 16

      • Notes on consolidated statement of cash flows 16

      • Notes on segment Information, etc. 18

      • Notes on per-share information 20

      • Significant events after reporting period 20

      • Omission of disclosure 20

1. ‌Overview of Operating Results, Etc.
   1. ‌Overview of Operating Results During the Period

      During the fiscal year under review (hereinafter "the period"), the Japanese economy was on a moderate recovery track, with improvements mainly in lease-related businesses, backed by companies' aggressive capital investment, and steady growth mainly in consumer-related areas, driven by the recovery of personal consumption. Looking overseas, in the Chinese economy, while overseas demand continued to grow with the expansion of exports to Asia, the EU and Africa, offsetting the decrease in exports to the U.S., domestic demand had personal consumption and investment that remained stagnant. Therefore, the overall economy was at a standstill. Regarding the European economy, the Eurozone as a whole is recovering with expanding government expenditures mainly in national defense and strong personal consumption. In the UK, both domestic and external demand remain sluggish due to weak employment and income environment, pressuring households' budgets. In the U.S. economy, the polarization of business sentiment progress since the non-manufacturing sector is showing steady trends while the manufacturing sector is experiencing a prolonged slump. Driven by capital expenditures form demand for AI, the economy remains strong. In this way, although the global economy is showing signs of recovery, the situation remains uncertain, as each country faces energy supply risks amid rising military tension in the Middle East.

      With regard to automobile manufacturers, which are the main customers of Nifco Inc. (the "Company") and its consolidated subsidiaries (collectively, the "Group"), in the Japanese market, both production volume and sales volume slightly decreased year on year in the period. In overseas markets, production volume decreased year on year in Europe and Korea, while sales volume increased slightly during the period. In the U.S., both production volume and sales volume decreased significantly year on year, while both production volume and sales volume resulted in a significant year-on-year increase in China and India.

      Under this business environment, net sales for the period amounted to 352,650 million yen, down 0.1% year on year. In terms of profits, operating profit decreased 2.3% year on year to 48,078 million yen, due to the impact of rising prices and labor costs, despite active initiatives in various areas to reduce controllable expense. Ordinary profit decreased 1.7% year on year to 51,275 million yen. As for extraordinary income and losses, 1,115 million yen was recorded as extraordinary losses, mainly due to the recording of impairment losses, but 1,196 million yen was recorded as extraordinary income, due to gain on sale of non-current assets. As a result, profit attributable to owners of parent decreased 23.9% year on year to 34,079 million yen.

      Recognition, analysis and discussion of operating results by segment are as follows. Net sales in each segment are to external customers.

      1. Industrial plastic parts & components [For the domestic automobile industry]

         For automotive production in Japan, the Company's sales declined, affected by a series of production cuts and stops due to China's restrictions on rare earth exports, natural disasters, the postponement of the launch of new car models, the situation in the Middle East, etc. However, the full-year sales total exceeded the plan due to factors such as contributions from mold sales associated with the launch of new vehicles, compensation for electric power charges, and price pass-through on material and labor cost increases.

         [For the overseas automobile industry]

         Overseas, business for Korean OEMs remained strong. Business for Japanese OEMs also maintained its net sales and achieved a steady profit growth despite the impact of the additional U.S. tariff. In addition, business for ASEAN countries, mainly India and Indonesia, remained robust. The consolidation of plants in Thailand was also implemented. Overseas business as a whole successfully

         increased net sales and profit. However, in China, Japanese OEMs continuously struggled due to sluggish sales, resulting in a decrease in net sales and profit year on year, while securing net sales and profit exceeded the plan through the execution of optimization. In Europe, profit declined due to a decrease in net sales resulting from the postponement of new car models in the UK, but it ended with a profit increase after optimization. We aim to further boost profitability by strengthening capital investment in Japanese and Korean OEM business in North America and India, and increasing the value of the product installed per vehicle.

         [For other industries]

         In the housing and living sector, during the period, the number of new housing starts reached the lowest level in 61 years, and demand for housing-related components supplied by the Group dropped significantly, resulting in a year-on-year decline in net sales. Meanwhile, in the sports and outdoor sector, net sales and profit increased because Chinese sport brands expanded their adoption of our products and shifted to a more profitable product structure and profitability improved.

         As a result of the above, net sales in the industrial plastic parts & components business decreased 0.1% from the previous fiscal year to 315,691 million yen. Segment profit decreased 2.8% year on year to 47,663 million yen.

      2. Bedding & furniture

         Domestically, although sales to hotels and exports increased, sales to retailers struggled. In addition, due to the impact of the rent increase associated with the opening of the Yokohama Gallery in April, etc., both net sales and profits declined. On the other hand, overseas, sales to the hotel sector in Hong Kong declined sharply, affected by the backlash from the hotel's special procurement driven by the introduction of waste disposal charges last year. Singapore demonstrated sluggish wholesale sales.

         However, in China, both retail and wholesale sales to the hotel sector were strong, as the Central Government's consumption-stimulation initiative, implemented in August 2024, was extended to September 2025. Operations at the plants in Thailand, established last fiscal year, began stabilizing. Consequently, both net sales and profit rose. As a result, net sales in the bedding & furniture business decreased 0.4% year on year to 36,958 million yen. Segment profit increased 0.1% year on year to 5,970 million yen.

   2. ‌Overview of Financial Position During the Period

      (Millions of yen)
      	As of March 31, 2025	As of March 31, 2026	Change
      Total assets	379,816	393,590	13,774
      Equity capital	274,967	296,456	21,489
      Equity ratio	72.4%	75.3%	2.9p

      Assets as of March 31, 2026 stood at 393,590 million yen, an increase of 13,774 million yen from the end of the previous fiscal year. The main factors for the increase were a 7,336 million yen increase in buildings and structures and a 2,649 million yen increase in machinery, equipment and vehicles and a 2,389 million yen increase in cash and deposits

      Liabilities as of March 31, 2026 stood at 94,018 million yen, a decrease of 7,072 million yen from the end of the previous fiscal year. The main factors for the decrease were decreases of 4,357 million yen in notes and accounts payable - trade, and 10,000 million yen in current portion of bonds payable, despite an increase of 3,121 million yen in income taxes payable.

      Net assets as of March 31, 2026 stood at 299,571 million yen, an increase of 20,846 million yen from the end of the previous fiscal year. The increase in net assets was mainly due to an increase of 25,993 million yen in retained earnings and an increase of 3,988 million yen in foreign currency translation adjustment due to yen depreciation, despite an increase of 9,300 million yen in treasury shares. As a result, equity ratio was 75.3% and net assets per share was 3,183.40 yen.

   3. ‌Overview of Cash Flows During the Period

      (Cash flows from operating activities)

      Net cash provided by operating activities during the period totaled 47,163 million yen, a decrease of 7,054 million yen while increase of 54,217 million yen provided in the previous year. This was mainly due to decline in decrease (increase) in trade receivables and decline in increase (decrease) in trade payables.

      (Cash flows from investing activities)

      Net cash used in investing activities totaled 18,130 million yen, an increase of 5,760 million yen from 23,891 million yen used in the previous year. This was mainly due to payments for sale of shares of subsidiaries resulting in the changes in the scope of consolidation in the same period of the previous fiscal year.

      (Cash flows from financing activities)

      Net cash used in financing activities totaled 31,355 million yen, an increase of 3,798 million yen from 35,154 million yen used in the previous year. This was mainly due to decreases in repayments of longterm borrowings and purchase of treasury shares.

      As a result, cash and cash equivalents as of March 31, 2026 increased 562 million yen from the end of the previous period to 141,659 million yen.

      	FY2021	FY2022	FY2023	FY2024	FY2025
      Equity ratio (%)	59.5	62.2	64.1	72.4	75.3
      Equity ratio on market value basis (%)	83.9	104.3	100.7	89.8	103.9
      Ratio of interest-bearing debt to cash flows (years)	2.2	1.7	1.1	0.7	0.5
      Interest coverage ratio (times)	66.9	75.2	59.1	199.5	172.7

      (Notes) Equity ratio: Equity capital / Total assets

      Equity ratio on market value basis: Market capitalization / Total assets

      Ratio of interest-bearing debt to cash flows: Interest-bearing debt / Cash flows Interest coverage ratio: Cash flows / Interest payments

      • All indicators are calculated based on consolidated financial figures.

      • Market capitalization is calculated by multiplying the closing share price at the end of the period by the number of issued shares (less treasury shares) at the end of the period.

      • Cash flows from operating activities in the consolidated statements of cash flows are used for cash flows. Interest-bearing debt includes all liabilities on the consolidated balance sheets for which interest is paid. For interest payments, interest paid in the consolidated statements of cash flows is used.

   4. ‌Future Outlook

      It remains difficult to forecast future automobile production due to changes in regional demand trends and market conditions. Furthermore, ongoing geopolitical risks, elevated raw material and logistics costs and rising labor expenses are putting earnings under pressure. Additionally, uncertain remains due to factors such as China's continued economic slowdown, increasing uncertainty in the Middle East situation and fluctuations in foreign exchange rates.

      Despite this challenging environment, the Company will strive to improve profits by maintaining rigorous management of fixed costs and production improvement activities. Based on the above, financial results for the fiscal year ending March 31, 2027, are forecast to be as follows: net sales of

      367.0 billion yen, operating profit of 50.8 billion yen, ordinary profit of 50.0 billion yen, and profit attributable to owners of parent of 34.0 billion yen.

      The foreign exchange rates assumed in this performance outlook are 1 USD = ¥153.

      *Notes regarding the use of earnings forecasts

      Forward-looking statements are based on assumptions and beliefs by the Company's management in light of the information currently available to it and involve potential risks and uncertainties. Actual results may differ greatly from these forward-looking statements due to changes in various factors.

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

   The Company strives to promote a dividend policy linked to business performance while maintaining a basic policy of continuous stable dividends.

   The Company plans to pay the dividend of 70 yen per share at the end of the current fiscal year. As a result, together with the interim dividend of 40 yen per share paid on November 28, 2025, the annual dividend per share will be 110 per share.

   For the fiscal year ending March 31, 2027, the Company plans to pay an interim dividend of 56 yen per share and a year-end dividend of 28 yen per share (after taking into account the stock split) (Note 1).

   When converted on a pre-stock-split basis, the year-end dividend would be 56 yen per share and the total annual dividend would be 112 yen per share.

   Note 1: At the Board of Directors meeting held on May 14, 2026, it was resolved to conduct a stock split at a ratio of 2 shares for each common share, with September 30, 2026 as the record date and October 1, 2026 as the effective date.

2. ‌Corporate Group

   Nifco Inc. (Manufacture and sale)

Molds

The following is a schematic diagram of the Company's businesses. The following are consolidated subsidiaries.

[Business category]

Product (sales category)

(The Company) (Subsidiaries and associates)

Industrial plastic fasteners and plastic precision

molded parts

(Notes) *consolidated subsidiaries

Product Molds

1. ‌Basic Stance Toward the Selection of Accounting Standards

   The Group has adopted Japanese generally accepted accounting principles (GAAP) for the purpose of comparability of consolidated financial statements among enterprises. However, the Group is currently studying the establishment of a system to prepare for the future application of IFRS, as well as the accounting policy and timing of its application.

2. ‌Consolidated Financial Statements and Main Notes

1. ‌Consolidated Balance Sheet

   		(Millions of yen)
   As of March 31, 2025		As of March 31, 2026
   Assets
   Current assets
   Cash and deposits	146,232	148,622
   Notes receivable - trade	1,129	1,458
   Electronically recorded monetary claims - operating	6,807	6,806
   Accounts receivable - trade	52,214	51,750
   Contract assets	477	482
   Securities	1,349	1,343
   Merchandise and finished goods	26,204	28,011
   Work in process	2,983	3,444
   Raw materials and supplies	10,039	11,276
   Other	12,405	13,138
   Allowance for doubtful accounts	(279)	(283)
   Total current assets	259,565	266,051
   Non-current assets
   Property, plant and equipment
   Buildings and structures	80,447	92,399
   Accumulated depreciation	(35,278)	(39,893)
   Buildings and structures, net	45,169	52,505
   Machinery, equipment and vehicles	80,835	87,087
   Accumulated depreciation	(62,707)	(66,309)
   Machinery, equipment and vehicles, net	18,128	20,777
   Tools, furniture and fixtures	28,267	28,754
   Accumulated depreciation	(24,406)	(24,395)
   Tools, furniture and fixtures, net	3,860	4,358
   Molds	89,700	89,851
   Accumulated depreciation	(85,231)	(85,348)
   Molds, net	4,468	4,503
   Land	20,808	22,130
   Leased assets	93	118
   Accumulated depreciation	(55)	(71)
   Leased assets, net	38	47
   Construction in progress	11,766	6,484
   Other	3,445	4,694
   Total property, plant and equipment	107,685	115,503
   Intangible assets	2,194	2,024
   Investments and other assets
   Investment securities	684	426
   Deferred tax assets	3,332	2,099
   Retirement benefit asset	3,470	3,992
   Other	2,883	3,491
   Allowance for doubtful accounts	(0)	(0)
   Total investments and other assets	10,370	10,011
   Total non-current assets	120,250	127,538
   Total assets	379,816	393,590

   		(Millions of yen)
   As of March 31, 2025		As of March 31, 2026
   Liabilities
   Current liabilities
   Notes and accounts payable - trade	26,284	21,926
   Current portion of bonds payable	10,000	-
   Short-term borrowings	199	-
   Current portion of long-term borrowings	60	60
   Accounts payable - other	6,053	6,469
   Income taxes payable	3,439	6,560
   Contract liabilities	5,035	5,704
   Provision for bonuses	3,531	3,766
   Other	12,620	12,634
   Total current liabilities	67,223	57,122
   Non-current liabilities
   Bonds payable	25,000	25,000
   Long-term borrowings	225	165
   Deferred tax liabilities	3,669	6,202
   Retirement benefit liability	1,760	1,767
   Other	3,211	3,761
   Total non-current liabilities	33,867	36,895
   Total liabilities	101,090	94,018
   Net assets
   Shareholders' equity
   Share capital	7,290	7,290
   Capital surplus	-	-
   Retained earnings	253,466	279,460
   Treasury shares	(18,588)	(27,888)
   Total shareholders' equity	242,168	258,861
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	6	62
   Deferred gains or losses on hedges	(7)	-
   Foreign currency translation adjustment	32,886	36,874
   Remeasurements of defined benefit plans	(85)	658
   Total accumulated other comprehensive income	32,799	37,595
   Non-controlling interests	3,757	3,115
   Total net assets	278,725	299,571
   Total liabilities and net assets	379,816	393,590

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

   		(Millions of yen)
   	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
   Net sales	353,038	352,650
   Cost of sales	245,838	245,155
   Gross profit	107,200	107,494
   Selling, general and administrative expenses
   Packing and transportation costs	10,127	10,520
   Advertising expenses	1,696	1,801
   Remuneration, salaries and allowances	15,681	15,877
   Employees' bonuses	2,793	2,645
   Provision for bonuses	1,633	1,732
   Retirement benefit expenses	1,020	1,166
   Other personnel expenses	5,643	5,401
   Rent expenses	2,209	2,321
   Travel and transportation expenses	1,192	1,209
   Depreciation	3,012	2,963
   Research and development expenses	2,008	2,133
   Other	10,981	11,643
   Total selling, general and administrative expenses	58,000	59,416
   Operating profit	49,200	48,078
   Non-operating income
   Interest income	1,900	1,521
   Gain on valuation of investment securities	116	-
   Foreign exchange gains	745	1,834
   Other	879	683
   Total non-operating income	3,642	4,039
   Non-operating expenses
   Interest expenses	262	276
   Prior period customs duty	103	-
   Business restructuring expenses	92	98
   Other	237	466
   Total non-operating expenses	695	842
   Ordinary profit	52,147	51,275

   			(Millions of yen)
   	Fiscal year ended March 31, 2025		Fiscal year ended March 31, 2026
   Extraordinary income
   Gain on sale of non-current assets	26		1,196
   Gain on sale of investment securities	1,729		-
   Insurance claim income	*1	878	-
   Reversal of allowance for losses on business transfer	*2	498	-
   Total extraordinary income	3,133		1,196
   Extraordinary losses
   Impairment losses	-		857
   Loss on sale and retirement of non-current assets	159		234
   Loss on valuation of investment securities	10		-
   Loss on sale of investment securities	-		23
   Settlement payments	*3	621	-
   Loss on reversal of foreign currency translation adjustment	*4	164	-
   Total extraordinary losses	955		1,115
   Profit before income taxes	54,324		51,356
   Income taxes - current	11,834		13,542
   Income taxes - deferred	(3,318)		2,642
   Total income taxes	8,516		16,184
   Profit	45,808		35,171
   Profit attributable to
   Profit attributable to owners of parent	44,767		34,079
   Profit attributable to non-controlling interests	1,040		1,091
   Other comprehensive income
   Valuation difference on available-for-sale securities	(2,022)		56
   Deferred gains or losses on hedges	14		7
   Foreign currency translation adjustment	10,167		4,060
   Remeasurements of defined benefit plans, net of tax	231		752
   Total other comprehensive income	8,391		4,877
   Comprehensive income	54,199		40,048
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	52,861		38,875
   Comprehensive income attributable to non-controlling interests	1,338		1,172

3. ‌Consolidated Statement of Changes in Equity

   Fiscal year ended March 31, 2025 (April 1, 2024 to March 31, 2025)

   (Millions of yen)
   	Shareholders' equity
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
   Balance at beginning of period	7,290	-	215,302	(3,608)	218,983
   Changes during period
   Dividends of surplus			(6,598)		(6,598)
   Profit attributable to owners of parent			44,767		44,767
   Reversal of revaluation reserve for land			6		6
   Purchase of treasury shares				(16,632)	(16,632)
   Disposal of treasury shares		(10)		1,652	1,641
   Cancellation of treasury shares					-
   Transfer from retained earnings to capital surplus		10	(10)		-
   Purchase of shares of consolidated subsidiaries					-
   Net changes in items other than shareholders' equity					-
   Total changes during period	-	-	38,164	(14,979)	23,184
   Balance at end of period	7,290	-	253,466	(18,588)	242,168

   	Accumulated other comprehensive income						Non-controlling interests	Total net assets
   	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Revaluation reserve for land	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehen- sive income
   Balance at beginning of period	2,028	(21)	6	23,019	(320)	24,712	3,356	247,052
   Changes during period
   Dividends of surplus								(6,598)
   Profit attributable to owners of parent								44,767
   Reversal of revaluation reserve for land			(6)			(6)		-
   Purchase of treasury shares								(16,632)
   Disposal of treasury shares								1,641
   Cancellation of treasury shares								-
   Transfer from retained earnings to capital surplus								-
   Purchase of shares of consolidated subsidiaries								-
   Net changes in items other than shareholders' equity	(2,022)	14		9,866	234	8,093	401	8,494
   Total changes during period	(2,022)	14	(6)	9,866	234	8,087	401	31,673
   Balance at end of period	6	(7)	-	32,886	(85)	32,799	3,757	278,725

   Fiscal year ended March 31, 2026 (April 1, 2025 to March 31, 2026)

   (Millions of yen)
   	Shareholders' equity
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
   Balance at beginning of period	7,290	-	253,466	(18,588)	242,168
   Changes during period
   Dividends of surplus			(7,614)		(7,614)
   Profit attributable to owners of parent			34,079		34,079
   Reversal of revaluation reserve for land					-
   Purchase of treasury shares				(9,999)	(9,999)
   Disposal of treasury shares		(27)		619	592
   Cancellation of treasury shares		(79)		79	-
   Transfer from retained earnings to capital surplus		471	(471)		-
   Purchase of shares of consolidated subsidiaries		(364)			(364)
   Net changes in items other than shareholders' equity					-
   Total changes during period	-	-	25,993	(9,300)	16,692
   Balance at end of period	7,290	-	279,460	(27,888)	258,861

   	Accumulated other comprehensive income						Non-controlling interests	Total net assets
   	Valuation difference on available- for-sale securities	Deferred gains or losses on hedges	Revaluation reserve for land	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
   Balance at beginning of period	6	(7)	-	32,886	(85)	32,799	3,757	278,725
   Changes during period
   Dividends of surplus								(7,614)
   Profit attributable to owners of parent								34,079
   Reversal of revaluation reserve for land								-
   Purchase of treasury shares								(9,999)
   Disposal of treasury shares								592
   Cancellation of treasury shares								-
   Transfer from retained earnings to capital surplus								-
   Purchase of shares of consolidated subsidiaries								(364)
   Net changes in items other than shareholders' equity	56	7		3,988	744	4,795	(642)	4,153
   Total changes during period	56	7	-	3,988	744	4,795	(642)	20,846
   Balance at end of period	62	-	-	36,874	658	37,595	3,115	299,571

4. ‌Consolidated Statement of Cash Flows

   		(Millions of yen)
   Fiscal year ended March 31, 2025		Fiscal year ended March 31, 2026
   Cash flows from operating activities
   Profit before income taxes	54,324	51,356
   Impairment losses	-	857
   Depreciation	13,007	12,567
   Insurance claim income	(878)	-
   Settlement payments	621	-
   Increase (decrease) in allowance for doubtful accounts	(21)	(1)
   Increase (decrease) in provision for bonuses	562	199
   Increase (decrease) in retirement benefit liability	189	1,071
   Decrease (increase) in retirement benefit asset	(654)	(532)
   Increase (decrease) in allowance for losses on business transfer	(498)	-
   Interest and dividend income	(2,014)	(1,524)
   Interest expenses	262	276
   Foreign exchange losses (gains)	49	(2,119)
   Loss (gain) on sale and retirement of non-current assets	133	(961)
   Loss (gain) on sale of investment securities	(1,729)	23
   Loss (gain) on valuation of investment securities	(106)	-
   Loss on reversal of foreign currency translation adjustment	164	-
   Decrease (increase) in trade receivables	6,569	1,152
   Decrease (increase) in inventories	(1,999)	(3,042)
   Decrease (increase) in other assets	784	(43)
   Increase (decrease) in trade payables	(117)	(4,991)
   Increase/decrease in consumption taxes payable/consumption taxes refund receivable	(2,300)	553
   Increase (decrease) in other liabilities	(176)	492
   Other, net	757	741
   Subtotal	66,927	56,077
   Interest and dividends received	2,060	1,501
   Interest paid	(271)	(273)
   Proceeds from insurance income	878	-
   Income taxes refund (paid)	(15,376)	(10,142)
   Net cash provided by (used in) operating activities	54,217	47,163
   Cash flows from investing activities
   Payments into time deposits	(13,403)	(14,380)
   Proceeds from withdrawal of time deposits	15,748	12,859
   Purchase of securities	-	(91)
   Proceeds from sale and redemption of securities	0	-
   Purchase of non-current assets	(18,185)	(19,019)
   Proceeds from sale of non-current assets	76	2,341
   Purchase of investment securities	(159)	(2)
   Proceeds from sale of investment securities	3,239	291
   Payments for sale of shares of subsidiaries resulting in change in scope of consolidation	*2 (11,128)	-
   Other, net	(78)	(129)
   Net cash provided by (used in) investing activities	(23,891)	(18,130)

   		(Millions of yen)
   	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
   Cash flows from financing activities
   Repayments of short-term borrowings	(281)	(197)
   Repayments of lease liabilities	(1,841)	(1,851)
   Repayments of long-term borrowings	(10,075)	(60)
   Redemption of bonds	-	(10,000)
   Purchase of shares of subsidiaries not resulting in change in scope of consolidation	-	(400)
   Proceeds from sale of treasury shares	1,026	367
   Purchase of treasury shares	(16,632)	(9,999)
   Purchase of treasury shares of subsidiaries	-	(363)
   Dividends paid	(6,597)	(7,611)
   Dividends paid to non-controlling interests	(754)	(1,239)
   Net cash provided by (used in) financing activities	(35,154)	(31,355)
   Effect of exchange rate change on cash and cash equivalents	3,902	2,885
   Net increase (decrease) in cash and cash equivalents	(926)	562
   Cash and cash equivalents at beginning of period	142,024	141,097
   Cash and cash equivalents at end of period	*1 141,097	*1 141,659

5. ‌Notes in Relation to the Consolidated Financial Statements
   • ‌Notes regarding the going concern assumption

     Not applicable.

   • ‌Changes in presentation

     Not applicable.

   • ‌Notes on consolidated balance sheet

     Not applicable.

   • ‌Notes on consolidated statements of income and comprehensive income

     *1 Insurance claim income

     It is proceeds from insurance income for the fire accident that occurred in September 2014 at Nifco Korea Poland Sp.z o.o., an overseas consolidated subsidiary.

     *2 Reversal of allowance for losses on business transfer

     The business transfer of the Company's consolidated subsidiaries, including Nifco Germany GmbH and Nifco KTW America Corporation, was completed on April 15, 2024. Regarding the allowance for losses on business transfer, which was estimated and recorded as related costs associated with the business transfer, the finalization of these expenses led to recording the difference between the expected and actual amounts as a reversal of allowance for losses on business transfer.

     *3 Settlement payments

     As for a lawsuit which was pending in the previous consolidated accounting period, after reaching a settlement with the plaintiff on February 26, 2025, the loss amount was finalized, and recorded as a settlement payment.

     *4 Loss on reversal of foreign currency translation adjustment

     This was a result of the reversal of foreign currency translation adjustment due to the completion of liquidation of the overseas subsidiary in Mexico that was a consolidated subsidiary.

   • ‌Notes on consolidated statement of cash flows

     *1. Reconciliation of cash and cash equivalents at end of period and the amount recorded in the consolidated balance sheet.

     (Unit: Millions of yen)

     Fiscal year ended March 31, 2025

     (April 1, 2024 to March 31, 2025)

     Fiscal year ended March 31, 2026

     (April 1, 2025 to March 31, 2026)

     Cash and deposits 146,232 148,622

     Time deposits with maturities of more than three months

     Short-term marketable securities with maturities of three months or less

     (6,476) (8,202)

     1,340 1,239

     Cash and cash equivalents 141,097 141,659

     *2. The following is a major breakdown of assets and liabilities of companies that were deconsolidated following the sale of shares during the previous period.

     Nifco Germany GmbH

     Current assets 14,986 million yen

     Non-current assets 33 million yen

     Current liabilities (5,169) million yen

     Non-current liabilities (2,325) million yen

     Nifco KTW America Corporation

     Current assets 7,133 million yen

     Non-current assets 11 million yen

     Current liabilities (15,428) million yen

     Non-current liabilities (787) million yen

     The amount of 11,128 million yen is presented as "payments for sale of shares of subsidiaries resulting in change in scope of consolidation," taking into account the increase or decrease in cash and cash equivalents related to sale of shares from cash and cash equivalents included in the above current assets.

   • ‌Notes on segment Information, etc.

[Business segment information]

1. Description of Reportable Segments

   The Company's reportable segments are those components of the Company for which separate financial information is available and are subject to periodic review by the Board of Directors to determine the allocation of management resources and evaluate their performance.

   The Company has two reportable segments based on the type and nature of its products: the industrial plastic parts & components segment and the bedding & furniture segment.

   Major products and services in each reportable segment are as follows.

   1. Industrial plastic parts & components: Industrial plastic fasteners and precision molded plastic products

   2. Bedding & furniture: Various beds, reclining chairs

2. Explanation of Measurements of Sales, Profit (Loss), Assets, Liabilities, and Other Items for Each Reportable Segment

   Accounting methods for reported business segments are generally the same as those described in "Notes - Significant accounting policies for preparation of consolidated financial statements."

   The profit or loss of each reportable segment is its operating profit or loss. Intersegment revenues are based on prevailing market prices.

3. Disclosure of Sales, Profit (Loss), Assets, Liabilities, and Other Items for Each Reportable Segment Fiscal year ended March 31, 2025 (April 1, 2024 to March 31, 2025)

(Unit: Millions of yen)

(Notes) 1. Adjustment of segment profit (loss) of (5,783) million yen represents corporate expenses. Corporate expenses are mainly general and administrative expenses not attributable to reportable segments.

1. Segment profit (loss) is adjusted for operating profit in the consolidated statement of income and statement of comprehensive income.

2. The adjustment of 72,189 million yen for segment assets includes 72,271 million yen in corporate assets not allocated to each reportable segment and (81) million yen in eliminated intersegment transactions.

3. The adjustment of 216 million yen for increase in property, plant and equipment and intangible assets represents capital investment in corporate assets that are not allocated to each reportable segment.

Fiscal year ended March 31, 2026 (April 1, 2025 to March 31, 2026)

(Unit: Millions of yen)

(Notes) 1. Adjustment of segment profit (loss) of (5,556) million yen represents corporate expenses. Corporate expenses are mainly general and administrative expenses not attributable to reportable segments.

2. Segment profit (loss) is adjusted for operating profit in the consolidated statement of income and statement of comprehensive income.

1. The adjustment of 75,399 million yen for segment assets includes 75,493 million yen in corporate assets not allocated to each reportable segment and (93) million yen in eliminated intersegment transactions.

2. The adjustment of 41 million yen for increase in property, plant and equipment and intangible assets represents capital investment in corporate assets that are not allocated to each reportable segment.

‌- Notes on per-share information

(Yen)

(Notes) 1. Diluted earnings per share is not noted because there are no potential shares.

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

(Notes) 3. The Company's shares remaining in trust, which are recorded as treasury shares in shareholders' equity, are included in the treasury shares deducted from the average number of shares during the period for the calculation of basic earnings per share, and are also included in the number of treasury shares deducted from the total number of issued shares at the end of the period for the calculation of net assets per share.

Average number of shares of treasury stock during the period deducted in the calculation of basic earnings per share

Fiscal year ended March 31, 2025: 331,817 shares;

Fiscal year ended March 31, 2026: 301,882 shares

Number of said shares of treasury stock at the end of the period deducted in the calculation of net assets per share

Fiscal year ended March 31, 2025: 354,132 shares;

Fiscal year ended March 31, 2026: 252,401 shares

• ‌Significant events after reporting period

  Not applicable.

• ‌Omission of disclosure

Disclosure of notes other than the above has been omitted because the necessity of disclosure in the summary of financial statements is not considered significant.