Consolidated Financial Results for the First Half of of FY2026 423 KB

Listed company name: NIPPN CORPORATION

Listing: The Prime Market of the Tokyo Stock Exchange

Code number: 2001

URL https://www.nippn.co.jp/en/index.html

Representative: Toshiya Maezuru, President and CEO

Contact: Hideaki Kataoka, General Manager of Corporate Communications Div.

TEL +81-3-3511-5307

Scheduled date for submission of the semiannual securities report November 10, 2025 Start of cash dividend payments December 3, 2025

Supplementary materials prepared: Yes

Results information meeting held: Yes (for institutional investors and analysts)

(November 7, 2025)

*Amounts less than one million yen have been rounded down.

1. Consolidated financial results for the first half of FY2026 (From April 1, 2025 to September 30, 2025)

   1. Consolidated operating results (cumulative)

      (Millions of yen, percentage figures show the rate of change from the same period of the previous year.)

      	Net Sales		Operating Income		Ordinary Income		Profit Attributable to Owners of Parent
      First half of FY2026 First half of FY2025	207,903 204,909	1.5% 3.0%	10,855 10,524	3.1% (4.6)%	12,130 12,092	0.3% (3.6)%	9,269 14,039	(34.0)% 65.4%

      (Note) Comprehensive income: First half of FY2026 ¥12,671 million [(31.4%)] First half of FY2025 ¥18,467 million [5.4%]

      	Profit per Share (Yen)	Fully Diluted Profit per Share (Yen)
      First half of FY2026	112.20	107.66
      First half of FY2025	179.96	156.96

   2. Consolidated financial position (Millions of yen)

      	Total Assets	Net Assets	Equity Ratio
      First half of FY2026	421,508	272,506	62.9%
      FY2025	399,226	246,484	60.7%

      (Reference) Equity capital: First half of FY2026 ¥265,337 million FY2025 ¥242,140 million

2. Dividends

   	Dividends per Share (Yen)
   	1Q-end	2Q-end	3Q-end	Year-end	Full Year
   FY2025 FY2026	- -	33.00 33.00	-	33.00	66.00
   FY2026 (Forecast)			-	33.00	66.00

   (Note) Adjustment for the most recent forecast of the dividends in the current term: None

3. Forecast of consolidated financial results for FY 2026 (From April 1, 2025 to March 31, 2026)

(Millions of yen, percentage figures show the rate of changes from the same period of the previous year.)

(Note) Adjustment for the most recent forecast of the consolidated financial results in the current term: None

• Notes

  1. Significant changes in the scope of consolidation during the current quarter: Yes New 1 company (company name) HATANAKA FOODS Co., Ltd.

  2. Adoption of special accounting methods for preparation of quarterly consolidated financial statements: None

  3. Changes in accounting policies, accounting estimates, and retrospective restatements

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

     2. Changes other than 1) : None

     3. Changes in accounting estimates : None

     4. Retrospective restatements : None

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

     First half of FY2026	84,727,163 shares	FY2025	78,824,009 shares
     First half of FY2026	510,069 shares	FY2025	771,273 shares
     First half of FY2026	82,617,156 shares	First half of FY2025	78,010,600 shares

     1. Number of shares outstanding at the end of each period (including treasury shares):

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

     3. Average number of shares (quarterly consolidated cumulative period):

        (Note) The number of treasury shares at the end of the period includes our shares (219,500 shares at the end of the first half of FY2026, 225,900 shares at the end of FY2025) held by Custody Bank of Japan, Ltd. (Trust E Account). The number of treasury shares deducted in calculating the average number of shares during the period includes the Company's shares of 222,700 shares at the end of the first half of FY2026 and 235,300 shares at the end of the first half of FY2025) held by Custody Bank of Japan, Ltd. (Trust E Account).

• These consolidated financial results for the first half are outside the scope of review by certified public accountants or an audit corporation.

• Explanation regarding the appropriate use of projected financial results and other special instructions

Descriptions regarding the future, including the financial outlook contained in this material, are based on certain information

currently available to us and particular assumptions, which are, at our discretion, deemed reasonable, and actual financial results may significantly vary due to various factors. Please refer to "1. Qualitative Information on Quarterly Consolidated Financial Results (3)

Information on forecast of the consolidated financial results" on page 5 for information on preconditions underlying the above outlook and other related information.

Contents

1. Qualitative Information on Quarterly Consolidated Financial Results ....................................................................... 2
   1. Overview of business results ...................................................................................................................................... 2
   2. Overview of financial position .................................................................................................................................... 4
   3. Information on forecast of the consolidated financial results................................................................................... 5
2. Quarterly Consolidated Financial Statements and Primary Notes .............................................................................. 6
   1. Quarterly consolidated balance sheets ...................................................................................................................... 6
   2. Quarterly consolidated statements of income and comprehensive income ............................................................ 8 (Quarterly consolidated statements of income) ..................................................................................................... 8 (Quarterly consolidated statements of comprehensive income) ........................................................................... 9
   3. Quarterly consolidated statements of cash flows 10
   4. Notes on quarterly consolidated financial statements 12

1. Qualitative Information on Quarterly Consolidated Financial Results
   1. Overview of business results

      (Millions of yen)

      	First six months of Fiscal 2025	First six months of Fiscal 2026	Difference	Change
      Net sales	204,909	207,903	2,994	101.5%
      Operating income	10,524	10,855	330	103.1%
      Ordinary income	12,092	12,130	37	100.3%
      Profit attributable to owners of parent	14,039	9,269	(4,769)	66.0%

      During the first six months of the fiscal year ending March 31, 2026, the Japanese economy has continued to gradually recover against the background of factors such as improvements in the income environment. On the other hand, it is expected that uncertain circumstances will continue in the future, due to the persistent inflation, the labor shortages, and the unstable international situation, such as the trends in the international trade policy of the United States.

      In the food industry, we continued to pay close attention to the impact on our business environment of factors, such as high raw material prices and logistics costs, and consumer inclination toward spending less due to the inflation.

      In these circumstances, we are striving to continuously improve our corporate value based on the management philosophy of "Contributing to the realization of a sustainable society by pursuing the wellbeing (happiness, health, and smiles) of people."

      During the first six months of fiscal 2026, as an effort to strengthen our earning capacity, we thoroughly implemented "consumer-based marketing" in all business areas including not only the home use food product category but also the professional use food product category, and we worked to expand our revenue by further raising our brand awareness.

      In addition, as an effort to expand our growth areas, we included HATANAKA FOODS Co., Ltd. as a consolidated subsidiary in April 2025, and commenced construction of a new plant for frozen foods, in order to enhance our supply system in the light of growth of the demand for frozen foods.

      Further, the plant constructed by Utah Flour Milling, LLC ("Utah Flour Milling"), in which we have invested, has commenced full-scaled operations. We will work to expand the sales channels in the U.S. market and supply more competitive products, by combining Utah Flour Milling's U.S. flour milling know-how and our manufacturing and operating management expertise.

      For the consolidated financial results in the first six months of fiscal 2026, net sales increased by 1.5% year-on-year to ¥207,903 million due to factors such as the expansion of inbound tourism consumption, sales promotion based on the marketing strategy, as well as price revisions implemented due to various rising costs. In terms of profit, despite an increase in various costs, including raw material costs, personnel costs and logistics costs in each business, due to steady sales, operating income increased by 3.1% year-on-year to

      ¥10,855 million and ordinary income increased by 0.3% year-on-year to ¥12,130 million. On the other hand, due to extraordinary gains from the sale of idle land in the previous year, profit attributable to owners of parent decreased by 34.0% year-on-year to ¥9,269 million.

      The performance of individual business segments was as follows.

      1. Flour Milling

         (Millions of yen)

         	First six months of Fiscal 2025	First six months of Fiscal 2026	Difference	Change
         Net sales	60,483	60,303	(179)	99.7%
         Operating income	4,374	4,677	303	106.9%

         In the Flour Milling business, although sales remained steady, due to the impact of the price revision for wheat flour following the reduction of the government selling price of foreign wheat in October last year, net sales decreased by 0.3% year-on-year to ¥60,303 million, and operating income increased by 6.9% year-on-year to ¥4,677 million.

         Due to the revision of the government selling price of foreign wheat in April this year and rising costs such as logistics and personnel costs, we have revised the price of wheat flour for professional use in July this year.

      2. Food

         (Millions of yen)

         	First six months of Fiscal 2025	First six months of Fiscal 2026	Difference	Change
         Net sales	119,620	122,203	2,582	102.2%
         Operating income	4,900	4,875	(24)	99.5%

         In the professional use food product category, net sales increased year-on-year, due to factors, such as the expansion of inbound tourism consumption and the steady sales of the Overseas business.

         In the home use food product category, net sales decreased year-on-year, due to consumer's stronger inclination toward spending less, despite sales promotion based on our marketing initiatives increased the sales volume of "Chewy and Delicious Spaghetti" series and helped maintaining steady sales volume of frozen food products such as "One Plate Meal" series and "Trendy Meal" series, which are ready to be served in a tray and can be used as a complete meal by itself.

         In the Nakashoku (Ready-made meal) business, net sales increased year-on-year due to steady sales and implementation of price revisions following the rising costs such as raw material costs.

         As a result, net sales of the Food Business increased by 2.2% year-on-year to ¥122,203 million, and operating income decreased by 0.5% year-on-year to ¥4,875 million.

      3. Other

(Millions of yen)

In the Pet Food business, net sales increased year-on-year, due to sales volume growth, etc.

In the Food Service business, net sales increased year-on-year, due to strong sales and price revisions implemented in the current fiscal year.

As a result, net sales of the Other businesses increased by 2.4% year-on-year to ¥25,396 million, and operating income decreased by 0.1% year-on-year to ¥1,294 million.