Consolidated Financial Results, Q1-FY2025

August 7, 2025

Company name: NIPPON SHOKUBAI CO., LTD. Listing: TSE (Prime Market)

Code number: 4114 URL: https://www.shokubai.co.jp/en Representative: Kazuhiro Noda, Representative Director, President

Contact for inquiries: Takeharu Tatsumi, General Manager of Corporate

Communications Dept. Phone: +81-3-3506-7605 Scheduled date of dividend payment: -

Supplementary material prepared: Yes Financial results information meeting held: None

(Figures are rounded off to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2026 (hereafter FY2025) (from April 1, 2025 to June 30, 2025)

   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes)

      	Revenue		Operating profit		Profit before tax		Profit		Profit attributable to owners of parent		Total comprehensive income
      Three months ended Jun. 30, 2025 Three months ended Jun. 30, 2024	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      	101,247 105,095	(3.7) 7.9	4,295 5,189	(17.2) (22.8)	6,283 6,421	(2.1) (8.5)	4,649 4,807	(3.3) (8.6)	4,434 4,631	(4.2) 1.2	2,387 13,913	(82.8) (9.1)

      	Basic earnings per share	Diluted earnings per share
      	Yen	Yen
      Three months ended Jun. 30, 2025	29.27	29.26
      Three months ended Jun. 30, 2024	29.98	29.97

   2. Consolidated financial position

   	Total assets	Total equity	Equity attributable to owners of parent	Rate of equity attributable to owners of parent	Equity attributable to owners of parent per share
   As of Jun. 30, 2025 As of Mar. 31, 2025	Millions of yen 534,688 543,659	Millions of yen 385,213 392,533	Millions of yen 376,502 383,029	% 70.4 70.5	Yen 2,484.91 2,527.98

2. Dividends

   	Dividends per share
   	End of 1Q	End of 2Q	End of 3Q	Year-end	Annual
   	Yen	Yen	Yen	Yen	Yen
   FY2024	-	54.00	-	60.00	114.00
   FY2025	-
   FY2025 (forecast)		50.00	-	50.00	100.00

   Note: Revisions to the dividends forecast since the latest announcement: None

3. Consolidated Financial Forecasts for the FY2025 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes)

Note: Revisions to the financial forecasts since the latest announcement: None

*Notes

1. Significant changes in the scope of consolidation during the period: Yes Newly included: 1 company (Emulsion Technology Co., Ltd.)

2. Changes in accounting policies; changes in accounting estimates

   1. Changes in accounting policies required by IFRS: None

   2. Other changes in accounting policies: None

   3. Changes in accounting estimates: None

3. Number of shares issued and outstanding (common shares)

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

      Jun. 30, 2025: 156,000,000 shares Mar. 31, 2025: 156,000,000 shares

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

      Jun. 30, 2025: 4,484,632 shares Mar. 31, 2025: 4,484,372 shares

   3. Average number of shares outstanding during the period

Three months ended

Jun. 30, 2025:

151,515,521 shares Three months ended

Jun. 30, 2024:

154,463,655 shares

Note: The numbers of treasury shares at the end of the periods include shares of the Company held by the trust account set up after the introduction of a Performance-linked Stock Compensation Plan for the Company's Members of the Board and Executive Officers (176,500 shares as of June 30, 2025 and 176,500 shares as of March 31, 2025). Shares of the Company held by the trust account are included in the treasury shares to be deducted in the calculation of the average number of shares outstanding during the period.

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

• Appropriate use of business forecasts and other special items

  1. In this document, statements other than historical facts are forward-looking statements that reflect the Company's plans and expectations. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results and achievements to differ from those anticipated in these statements.

  2. Supplementary material will be disclosed through TDnet on Thursday, August 7, 2025, and also be posted on the Company's website.

* This document is translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

1. Overview of Operating Results, etc 2

   1. Overview of Operating Results for the Period under Review 2

   2. Overview of Financial Position for the Period under Review 2

2. Condensed Quarterly Consolidated Financial Statements and Related Notes 3

   1. Condensed Quarterly Consolidated Statements of Financial Position 3

   2. Condensed Quarterly Consolidated Statements of Profit or Loss and Condensed Quarterly Consolidated Statements of Comprehensive Income 5

   3. Condensed Quarterly Consolidated Statements of Changes in Equity 7

   4. Condensed Quarterly Consolidated Statements of Cash Flows 9

   5. Notes Concerning Condensed Quarterly Consolidated Financial Statements 10

(Going Concern Assumption) 10

(Applicable Financial Reporting Framework) 10

(Segment Information) 10

(Significant Subsequent Event) 12

1. Overview of Operating Results, etc.
   1. Overview of Operating Results for the Period under Review

      For an overview of the Group's operating results, please refer to the Supplementary Material for Financial Results, which has been disclosed today.

   2. Overview of Financial Position for the Period under Review
   1. Assets, Liabilities and Equity

      Total assets at the end of the first quarter of the fiscal year under review decreased by 8,971 million yen from the end of the previous fiscal year to 534,688 million yen. Current assets decreased by 16,372 million yen from the end of the previous fiscal year. This was mainly due to a decrease in cash and cash equivalents and a decrease in trade receivables primarily owing to lower selling prices due to a decline in raw material prices, despite increases mainly in trade receivables and inventories arising from the acquisition of a subsidiary. Non-current assets increased by 7,401 million yen from the end of the previous fiscal year. This was mainly due to an increase in property, plant and equipment because of the capital expenditure and goodwill arising from acquisition of a subsidiary, despite a decrease in investments accounted for using equity method.

      Total liabilities decreased by 1,651 million yen from the end of the previous fiscal year to 149,475 million yen. This was mainly due to a decrease in income taxes payable, despite an increase in short-term borrowings and an increase mainly in trade payables due to the acquisition of a subsidiary.

      Total equity decreased by 7,320 million yen from the end of the previous fiscal year to 385,213 million yen. This was mainly due to a decrease in retained earnings resulting mainly from dividend of surplus and a decrease in exchange differences on translation of foreign operations caused by exchange rate fluctuations.

      The rate of equity attributable to owners of parent decreased by 0.1 percentage points from 70.5% at the end of the previous fiscal year to 70.4%. Equity attributable to owners of parent per share decreased by 43.07 yen from the end of the previous fiscal year to 2,484.91 yen.

   2. Cash Flows

   Cash and cash equivalents at the end of the three months ended June 30, 2025 amounted to 43,508 million yen, a decrease of 11,056 million yen from the end of the previous fiscal year, as the sum of cash flows used in investing activities including capital investment and cash flows used in financing activities exceeded the cash flows provided by operating activities.

   Cash flow from operating activities

   Net cash provided by operating activities in the three months ended June 30, 2025 amounted to 14,762 million yen, a decrease of 1,687 million yen from a cash inflow of 16,449 million yen in the same period of the previous fiscal year. This was mainly owing to a decrease in trade payables due primarily to a decline in raw material prices and a higher income taxes paid than in the same period of the previous fiscal year, despite a decrease in trade receivables.

   Cash flow from investing activities

   Net cash used in investing activities in the three months ended June 30, 2025 totaled 17,080 million yen, an increase of 12,287 million yen from a cash outflow of 4,793 million yen in the same period of the previous fiscal year. This was mainly due to increases in purchase of property, plant and equipment and purchase of shares of subsidiaries resulting in change in scope of consolidation.

   Cash flow from financing activities

   Net cash used in financing activities in the three months ended June 30, 2025 amounted to 8,140 million yen, a decrease of 297 million yen from a cash outflow of 8,437 million yen in the same period of the previous fiscal year. This was mainly due to the fact that a net decrease in short-term borrowings turned to a net increase, despite an increase in dividends paid.

2. Condensed Quarterly Consolidated Financial Statements and Related Notes

Assets

Current assets

FY2024

As of Mar. 31, 2025

(Unit: Millions of yen) 1Q FY2025

As of Jun. 30, 2025