Summary of Consolidated Financial Results for the 2nd Quarter of Fiscal Year Ending December 31, 2025

Consolidated Financial Results

for the Six Months Ended June 30, 2025 [Japanese GAAP]

August 6, 2025

Company name: Nisshinbo Holdings Inc.

Listing: Tokyo Stock Exchange

Securities code: 3105

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

Representative: Yasuji Ishii President and Representative Director

Inquiries: Shuji Tsukatani Director and Executive Managing Officer

Telephone: +81-03) 5695-8833

Scheduled date to file semi-annual securities report August 7, 2025 Scheduled date to commence dividend payments: September 5, 2025

Preparation of supplementary material on financial results:

Yes

Holding of financial results briefing: Yes (for investors and analysts)

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

1. Consolidated Financial Results for the Six Months Ended June 30, 2025 (January 1, 2025 to June 30, 2025)

   1. Consolidated Operating Results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Six months ended June 30, 2025 June 30, 2024	Millions of yen 254,721 240,022	% 6.1 (10.9)	Millions of yen 18,417 6,715	% 174.2 (44.0)	Millions of yen 19,019 11,092	% 71.5 (29.7)	Millions of yen 11,498 8,936	% 28.7 (23.1)

      (Note) Comprehensive income:	Six months ended June 30, 2025:	¥	271 million [	(98.9) %]
      	Six months ended June 30, 2024:	¥	25,875 million [	18.5%]

      	Basic earnings per share	Diluted earnings per share
      Six months ended	Yen	Yen
      June 30, 2025	73.53	-
      June 30, 2024	56.87	-

      (Note) The diluted earnings per share for the six months ended June 30, 2025 is not stated because there are no potential shares. The diluted earnings per share for the six months ended June 30, 2024 is not stated because there are no potential shares with a dilutive effect.

   2. Consolidated Financial Position

   	Total assets	Net assets	Capital adequacy ratio
   As of June 30, 2025 December 31, 2024	Millions of yen 621,892 680,112	Millions of yen 294,458 297,785	% 42.9 39.7

   (Reference) Equity: As of June 30, 2025:	¥	266,868 million
   As of December 31, 2024:	¥	269,788 million

   (Note) During the current interim consolidated accounting period, we have finalized the provisional accounting treatment related to business combinations, and the figures for the fiscal year ended December 2024 reflect the finalized provisional accounting treatment. In addition, from the beginning of the current interim consolidated accounting period, we have applied "Accounting Standards for Income Taxes, Resident Taxes, and Business Taxes," etc., and the figures for the fiscal year ended December 2024 reflect the retrospective application of these changes in accounting policies.

2. Dividends

   	Annual dividends
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended December 31, 2024 Fiscal year ending December 31, 2025	Yen - -	Yen 18.00 18.00	Yen -	Yen 18.00	Yen 36.00
   Fiscal year ending December 31, 2025 (Forecast)			-	18.00	36.00

   (Note) Revision to the forecast for dividends announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2025(January 1, 2025 to December 31, 2025)

(Percentages indicate year-on-year changes.)

(4) Number of issued shares (common shares)

1. Total number of issued shares at the end of the period (including treasury shares): June 30, 2025: 169,328,839 shares

   December 31, 2024: 169,246,174 shares

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

   June 30, 2025: 13,129,696 shares

   December 31, 2024: 12,079,169 shares

3. Average number of shares outstanding during the period:

Six months ended June 30, 2025: 156,385,291 shares

Six months ended June 30, 2024: 157,128,668 shares (Note) On May 20, 2025, we issued 82,665 new shares as restricted stock awards.

• Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters

The consolidated financial results forecast contained in this document are based on information currently available to the Company. The Company does not make any guarantees regarding the achievement of these forecasts. For further details, please refer to the attached document (2) "Explanation of Consolidated Financial Results Forecasts and Other Forward-looking Information" and the "Notice of Revision to Consolidated Financial Results Forecast" announced today (August 6, 2025).

We are scheduled to hold an online financial results briefing for investors and analysts today (August 6, 2025).

Nisshinbo Holdings Inc. (3105)

Consolidated Financial Results for the Six Months Ended June 30, 2025

Table of Contents of Attached Materials

1. Qualitative Information on Semi-annual Financial Results 2

   1. Overview of Operating Results 2

   2. Explanation of Consolidated Financial Results Forecasts and Other Forward-looking Information 3

2. Semi-annual Consolidated Financial Statements and Primary Notes 4

   1. Semi-annual Consolidated Balance Sheets 4

   2. Semi-annual Consolidated Statements of Income and Comprehensive Income 6

   3. Semi-annual Consolidated Statements of Cash Flows 8

   4. Notes to Semi-annual Consolidated Financial Statements 10

(Notes on Premise of a Going Concern) 10

(Notes to Significant Changes in the Amount of Shareholders' Equity) 10

(Change in Accounting Policy) 10

(Segment Information) 11

(Business Combinations) 13

1. Overview of Operating Results

   Nisshinbo Holdings Inc. (3105)

   Consolidated Financial Results for the Six Months Ended June 30, 2025

   During the current interim consolidated accounting period, Nisshinbo Group posted net sales of ¥254,721 million (up

   ¥14,699 million, or 6.1%, year on year), mainly due to higher sales in the Wireless and Communications business and the Real Estate business, despite a decrease in sales in the Micro Devices business.

   Operating profit was ¥18,417 million (up ¥11,702 million, or 174.2%, year on year) due to increased profit in the Wireless and Communications business and the Real Estate business, despite an increase in losses in the Micro Devices business. Ordinary profit was ¥19,019 million (up ¥7,926 million, or 71.5%, year on year). Profit attributable to owners of parent was

   ¥11,498 million (up ¥2,562 million, or 28.7% year on year).

   The results for the main business segments are as follows. Segment profit or segment loss is based on operating profit or operating loss.

   (Wireless and Communications business)

   In the Solutions and Specialized Equipment business, sales and profit increased due to an increase in orders for radar equipment and maintenance equipment for the Ministry of Defense based on the basic policy of the defense capability development plan based on national strategy, as well as an increase in orders for prefectural disaster prevention systems due to replacement demand.

   The Marine Systems business also saw increased sales and profit due to strong orders for equipment for new commercial ships, as well as for the aftermarket, including equipment for commercial ship retrofitting and maintenance services.

   In the Mobility business, sales decreased and profit deteriorated due to a decline in orders for automotive ITS (Intelligent Transport Systems) and sluggish orders for repeaters (mobile phone relay devices) affected by customer schedule adjustments.

   As a result, the Wireless and Communications business posted net sales of ¥126,174 million (up 6.9% year on year) and segment profit of ¥10,341 million (up 79.1% year on year).

   (Micro Devices business)

   Sales of consumer equipment/devices remained at the same level as the previous year due to orders for smartphones and amusement-related products, as customer inventory adjustments bottomed out. Sales of industrial equipment also remained at the same level as the previous year due to orders for domestic office automation equipment, but orders for automotive industry products declined due to sluggish demand in the EV market and inventory adjustments by customers in the sensor-related business. As a result, the Electronic Devices business saw a decline in sales and an increase in losses.

   In the Microwave business, although orders for sensor-related products for the domestic market were sluggish, sales and profit increased due to strong orders for maintenance parts for electronic tubes.

   As a result, the Micro Devices business posted net sales of ¥29,825 million (down 4.2% year on year) and a segment loss of ¥4,257 million (a loss expansion of ¥1,509 million year on year).

   (Material)

   ・Automobile Brakes

   The Japanese base saw an increase in sales and profit due to the stabilization of production cuts caused by issues such as car manufacturer certification irregularities and the recovery of orders. The US base also saw strong orders for Japanese automakers focusing on hybrid vehicles, resulting in increased sales and profit. The Chinese base saw an increase in sales but a decrease in profit, while the Korean base saw a decrease in sales but reduced losses through profitability improvement activities. The Thai base experienced a decrease in both sales and profit due to a downturn in market conditions.

   As a result, the Automobile Brakes business posted net sales of ¥28,275 million (down 1.7% year on year) and segment profit of ¥1,787 million (up 61.1% year on year).

   ・Precision Instruments

   Nisshinbo Holdings Inc. (3105)

   Consolidated Financial Results for the Six Months Ended June 30, 2025

   The Precision Components Business saw a decrease in sales and profit due to a decline in orders at the Chinese base, despite the full-scale launch of mass production of automotive EBS components at the Indian base. In the molded products business, sales and profit increased due to factors such as an increase in orders for air conditioning-related products, in-vehicle products, and medical-related products.

   As a result, the Precision Instruments business posted net sales of ¥27,138 million (up 5.3% year on year) and segment profit of ¥1,250 million (up 167.6% year on year).

   ・Chemicals

   Sales and income in the rigid urethane business decreased due to lower orders for liquid products, rigid blocks, and water treatment products. Sales of carbon separators for fuel cells declined and losses widened due to a decrease in orders caused by stagnation in the overall hydrogen market. In Specialty Chemicals, sales and profit increased due to higher orders for water-based resins. Research and development expenses in the Chemicals business increased due to the promotion of commercialization.

   As a result, the Chemicals business posted net sales of ¥4,740 million (down 13.4% year on year) and a segment loss of ¥173 million (a deterioration of ¥489 million year on year).

   ・Textiles

   The shirt business, including Tokyo Shirt saw a decrease in sales and an expansion of losses due to reduced orders for Apollocot shirts (Super shape stability processing) and dress shirt materials. The uniform business saw an increase in sales and a reduction in losses due to increased orders for custom-made products. The Brazilian base saw a decrease in sales but an increase in profit due to cost reductions.

   As a result, the Textiles business posted net sales of ¥16,593 million (down 9.8% year on year) and a segment profit of ¥46 million (an improvement of ¥210 million year on year).

   (Real Estate)

   The Real Estate business saw a significant increase in sales and profit due to the sale of residential land in Okazaki City, Aichi Prefecture, the sale of the large-scale commercial facility Ario Nishiarai (Adachi-ku, Tokyo), and the sale of condominiums in Minato-ku, Tokyo.

   As a result, the Real Estate business posted net sales of ¥15,863 million (up 131.5% year on year) and segment profit of

   ¥11,811 million (up 126.2% year on year).

2. Explanation of Consolidated Financial Results Forecasts and Other Forward-looking Information

As announced in the "Notice Regarding Implementation of Early Retirement Incentive Program in Connection with Restructuring of Wireless and Communications Business" dated June 26, 2025, the Nisshinbo Group has positioned the restructuring of its Wireless and Communications business as its most important task for improving profitability. In order to strengthen the foundation of its core businesses through simplification and optimization of its business and production structures, the Nisshinbo Group has decided to implement an early retirement program at Japan Radio Co., Ltd. and its domestic subsidiaries. The costs associated with this program are expected to be recognized as extraordinary losses under "Business structure improvement expenses of subsidiaries" in the consolidated financial statements.

In addition, due to the recording of an extraordinary loss for impairment losses on assets for the manufacture of carbon separators for fuel cells in the Chemicals business as a result of significant changes in the market environment, net income attributable to owners of Nisshinbo Group is expected to fall below the previous forecast.

The exchange rates used as assumptions for the earnings forecast are 145 yen to the US dollar and 160 yen to the euro.

For details, please refer to the "Notice of Revisions to Consolidated Financial Results Forecast" announced today (August 6, 2025).