Notice Concerning Differences in Non-Consolidated Financial Results from the Previous Fiscal Year

For Immediate Release

May 13, 2026

Company name: Sakai Chemical Industry Co., Ltd. Representative: President and Representative Director,

Toshiyuki Yagura (TSE Prime Market, Stock code: 4078)

Inquiries: Director, General Manager of Accounting & Finance Department

Hiroyuki Hattori

Telephone: +81-72-223-4111

Sakai Chemical Industry Co., Ltd. (the "Company") hereby announces that differences have arisen between its non-consolidated financial results for the fiscal year ended March 31, 2026 (April 1, 2025 through March 31, 2026) and its results for the previous fiscal year, as detailed below.

1. Differences Between Full-Year Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (April 1, 2025 Through March 31, 2026) and Results for the Previous Fiscal Year

   	Net sales	Operating profit	Ordinary profit	Net income	Net income per share
   Results for fiscal year ended March 31, 2025 (A)	(Millions of yen)	(Millions of yen)	(Millions of yen)	(Millions of yen)	(yen)
   	44,342	2,655	3,405	6,235	384.56
   Results for fiscal year ended March 31, 2026 (B)	41,633	2,811	3,947	798	51.15
   Change (B-A)	(2,708)	155	541	(5,437)
   Change (%)	(6.1)	5.9	15.9	(87.2)

2. Reasons for Change

Net sales declined year on year due in part to termination of the pigment-grade titanium dioxide business and slowdown in the Chinese economy, which impacted the Cosmetic Materials segment. Meanwhile, operating profit and ordinary profit rose year on year thanks to steady performance from the Electronic Materials segment and other operations.

Reflecting a deterioration in the profitability of the Cosmetic Materials segment, the Company revised its earnings outlook and reduced the book value of cosmetic materials manufacturing facilities to their recoverable amount, recording the resulting impairment loss of 2,967 million yen as extraordinary loss. Meanwhile, the Company reported a 2,371 million yen gain on extinguishment of tie-in shares-a merger-related accounting gain-as extraordinary income for the fiscal year ended March 31, 2025 but booked no such gain for the fiscal year ended March 31, 2026. Due to these factors, the Company observed a significant year-on-year decline in net income for the fiscal year ended March 31, 2026.

Note : This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.