Sakata INX : Consolidated Financial Results for the Three Months Ended March 31, 2026 （256KB）

Consolidated Financial Results

for the Three Months Ended March 31, 2026 [Japanese GAAP]

Company name: SAKATA INX CORPORATION Stock exchange listing: Tokyo

Code number: 4633

URL: https://www.inx.co.jp/english/

Representative: Yoshiaki Ueno Representative Director, President & CEO Contact: Takahiro Kiuchi General Manager, Finance & Accounting Div. Phone: +81-6-6447-5824

Scheduled date of commencing dividend payments: -Availability of supplementary briefing material on quarterly financial results: Yes Schedule of financial results briefing session: No

May 11, 2026

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Three Months Ended March 31, 2026 (January 1, 2026 to March 31, 2026)

   1. Consolidated Operating Results (% indicates changes from the previous corresponding period.)

      	Net sales		Operating income		Ordinary income		Net income attributable to owners of parent
      Three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      March 31, 2026	68,121	6.3	4,173	8.2	4,796	13.3	3,314	7.7
      March 31, 2025	64,059	8.3	3,857	(1.8)	4,234	5.9	3,078	12.7

      (Note) Comprehensive income: Three months ended March 31, 2026:	¥	5,365 million	[	-%]
      Three months ended March 31, 2025:	¥	(2,010) million	[	-%]

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      March 31, 2026	67.65	-
      March 31, 2025	62.09	-

   2. Consolidated Financial Position

   	Total assets	Net assets	Equity ratio
   As of	Million yen	Million yen	%
   March 31, 2026	228,933	128,423	52.7
   December 31, 2025	225,864	126,519	52.8

   (Note) Equity: As of March 31, 2026:	¥	120,661 million
   As of December 31, 2025:	¥	119,158 million

2. Dividends

   	Annual dividends
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended December 31, 2025	-	45.00	-	50.00	95.00
   Fiscal year ending December 31, 2026	-
   Fiscal year ending December 31, 2026 (Forecast)		50.00	-	50.00	100.00

   (Note) Revision to the forecast for dividends announced most recently: No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2026 (January 1, 2026 to December 31, 2026)

(% indicates changes from the previous corresponding period.)

(Note) Revision to the financial results forecast announced most recently: No

* Notes:

1. Changes in significant subsidiaries during the three months ended March 31, 2026: No

2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No

3. Changes in accounting policies, changes in accounting estimates and retrospective restatement

   1. Changes in accounting policies due to the revision of accounting standards: No

   2. Changes in accounting policies other than 1) above: No

   3. Changes in accounting estimates: No

   4. Retrospective restatement: No

4. Total number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): March 31, 2026: 54,172,361 shares

      December 31, 2025: 54,172,361 shares

   2. Total number of treasury shares at the end of the period:

      March 31, 2026: 5,440,249 shares

      December 31, 2025: 5,043,947 shares

   3. Average number of shares outstanding during the period:

Three months ended March 31, 2026: 48,991,543 shares

Three months ended March 31, 2025: 49,577,852 shares

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: No

• Explanation of appropriate use of financial forecasts and other special notes

  1. Forward -looking statements contained in this document, including forecasts of business performance, are based on information currently available to the Company and on certain assumptions deemed reasonable by the Company, and are not intended as a guarantee of future results. Actual results may differ materially from such statements due to various factors.

     For information regarding the financial results forecast, please refer to "1. Overview of Operating Results, etc. (3)

     Consolidated forecast and other forward-looking statements" on page 4 of Attachments.

  2. Supplementary briefing material on financial results is disclosed on TDnet on May 11, 2026 and is posted on the Company's website.

Contents of Attachments

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 4

   3. Consolidated forecast and other forward-looking statements 4

2. Quarterly Consolidated Financial Statements and Principal Notes 6

   1. Quarterly consolidated balance sheets 6

   2. Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income 8

      Quarterly consolidated statements of income 8

      Quarterly consolidated statements of comprehensive income 9

   3. Notes to quarterly consolidated financial statements 10

Segment information, etc. 10

Significant changes in the amount of shareholders' equity 12

Going concern assumption 12

Quarterly consolidated statements of cash flows 12

1. Overview of Operating Results, etc.
   1. Overview of operating results for the period under review

      During the three months ended March 31, 2026 (the "period under review"), the global economy overall maintained solid growth; however, intensifying situation in the Middle East led to a surge in energy prices and increased concerns over a resurgence of inflation, resulting in a more uncertain outlook.

      In the United States, the economy remained solid, supported by personal consumption and corporate investment. Meanwhile, uncertainty over the outlook for monetary policy in response to price trends heightened, and there were also signs of growing caution about an economic slowdown. In Europe, the economy maintained a moderate recovery trend, supported by a pickup in personal consumption and government spending; however, the pace of recovery remained sluggish as room for monetary easing was limited amid a renewed rise in inflation rate. In Asia, while domestic demand remained relatively firm in countries such as India, Indonesia, and Vietnam, the impact of rising energy prices-amid high dependence on energy imports-on current account balances and price trends became a concern, resulting in divergences in economic sentiment across countries and regions.

      In Japan, the pace of economic recovery remained moderate due in part to uncertainty over the outlook for overseas economies although personal consumption recovered gradually against the backdrop of improvements in the employment and income conditions.

      Under these circumstances, this year is the final year of the Medium-term Management Plan 2026 (CCC-II), which is the phase of business growth, stronger earnings capabilities, to achieve the long-term strategic vision "SAKATA INX VISION 2030," which is targeted for the year 2030. The Group has promoted aggressive expansion of sustainable products centered on environmentally friendly products, such as the BOTANICAL INK series, while also working to enhance the competitiveness of the functional coatings business, where demand is expected to grow. Particularly, in the packaging field, the Group continued to expand sales in growing regions where the middle class is expanding due to its population growth and economic development. Along with this, the Group promoted global management cooperation by enhancing and expanding strategic products for global accounts and streamlining purchasing, production and logistics through regional collaboration. In the Digital and Specialty product business, the Group expanded sales of inkjet inks, in addition to existing products, in emerging markets of apparel, food, and home furnishings. Furthermore, the Group promoted sales expansion of high-quality products of image display materials.

      Net sales amounted to 68,121 million yen (up 6.3% YoY), mainly due to strong sales in the Americas, solid sales of the digital and specialty products, and the impact of foreign exchange rates due to the depreciation of the yen.

      In terms of profit, operating income amounted to 4,173 million yen (up 8.2% YoY). The increase was primarily driven by higher sales volume as well as continued improvement in profitability amid raw material prices remaining stable, despite an increase in personnel and other expenses in the Americas. Ordinary income amounted to 4,796 million yen (up 13.3% YoY). Net income attributable to owners of parent amounted to 3,314 million yen (up 7.7% YoY).

      (Reference) Average exchange rate of Japanese yen to the U.S. dollar during the period

      	1st quarter
      Fiscal year ending or ended	Yen
      December 31, 2026	156.86
      December 31, 2025	152.60

      The operating results by segment are as follows.

      Beginning with the first quarter of the fiscal year under review, the Company has reclassified some segments of consolidated subsidiaries previously included in "Other" into the "Digital and Specialty Products" segment. Accordingly, the segment information for the first three months of the previous fiscal year has been restated based on the revised segment classification.

      (Million yen, unless otherwise stated)

      	Net sales					Operating income
      	Previous period	Current period	Change	Change [%]	Real* [%]	Previous period	Current period	Change	Change [%]
      Printing Inks and Graphic Arts Materials (Japan)	12,488	12,177	(310)	(2.5)	(2.5)	274	564	289	105.6
      Printing Inks (Asia)	14,017	14,303	285	2.0	(0.4)	1,602	1,659	57	3.6
      Printing Inks (Americas)	25,579	27,664	2,085	8.2	4.1	1,549	1,287	(262)	(16.9)
      Printing Inks (Europe)	5,241	6,243	1,002	19.1	5.4	85	227	142	166.4
      Digital and Specialty Products	6,522	7,518	996	15.3	12.4	606	607	1	0.2
      Reportable Segment total	63,849	67,908	4,058	6.4	2.8	4,118	4,347	228	5.5
      Other	2,089	1,658	(430)	(20.6)	(20.6)	121	52	(68)	(56.7)
      Adjustments	(1,880)	(1,446)	433	-	-	(383)	(226)	156	-
      Total	64,059	68,121	4,061	6.3	2.8	3,857	4,173	316	8.2

      * "Real" represents a real percentage change excluding the impact of foreign currency translation of overseas

      consolidated subsidiaries

      Printing Inks and Graphic Arts Materials (Japan)

      Although the wave of price revisions across daily necessities, food, and beverages showed signs of stabilizing, subdued consumer sentiment persisted as households continued to adopt a more cost-conscious spending stance. In the packaging related business, the sales of both gravure inks and flexo inks showed signs of recovery, exceeding those of the same period of the previous year. In the printing information-related business, sales fell below those of the same period of the previous year, reflecting the impact of reducing unprofitable items in offset inks to improve profitability although newspaper inks remained relatively solid, amid the structural contraction of the market caused by digitalization. Under such circumstances, the sales of printing inks as a whole exceeded those for the same period of the previous year thanks to the effect of selling price revisions, despite a decrease in sales volume. The graphic arts materials saw a significant decline in the sales of materials for printmaking from the same period of the previous year, due in part to the reduction of unprofitable items. As a result, net sales amounted to 12,177 million yen (down 2.5% YoY).

      In terms of profit, operating income amounted to 564 million yen (up 105.6% YoY), primarily due to improved profitability reflecting reduction of unprofitable items and the effects of selling price revisions.

      Printing Inks (Asia)

      Against a backdrop of divergences in economic sentiment within the region, the sales of packaging-related gravure inks, which are the Group's mainstay products, remained solid in India and Vietnam. In the printing information-related business, sales were strong, driven by expanded sales efforts in India. Net sales amounted to 14,303 million yen (up 2.0% YoY), primarily due to strong sales and the impact of foreign exchange translation effects, despite the impact of declining selling prices.

      In terms of profit, operating income amounted to 1,659 million yen (up 3.6% YoY), primarily due to the stable prices of raw materials.

      Printing Inks (Americas)

      The sales of flexo inks and gravure inks in the mainstay packaging-related business remained strong due to continued gradual recovery of demand in North America as well as sales expansion in South America including Brazil. The sales of metal inks were strong, backed by a continued expansion of demand for aluminum cans from the perspective of environmental impact, along with steady sales expansion driven by the ongoing shift from glass bottles to aluminum cans in Central and South America. The sales of offset inks, which are related to printing information, remained at the same level as the same period of the previous year, despite the structural contraction of the market. Net sales amounted to 27,664 million yen (up 8.2% YoY) primarily due to the growing sales volume, the effect of selling price revisions, and the impact of foreign exchange translation.

      In terms of profit, operating income amounted to 1,287 million yen (down 16.9% YoY), primarily due to an increase in personnel and other expenses and depreciation expenses associated with the new plant in Brazil, despite the growth in sales volume and the effects of selling price revisions.

      Printing Inks (Europe)

      In the packaging-related business, sales were somewhat sluggish, but sales were strong in metal inks, particularly for major customers. Net sales amounted to 6,243 million yen (up 19.1% YoY) primarily due to strong sales and foreign exchange translation effects.

      In terms of profit, operating income amounted to 227 million yen (up 166.4% YoY) primarily due to strong sales and the stable prices of raw materials.

      Digital and Specialty Products

      The sales of inkjet inks exceeded those of the same period of the previous year, supported by strong sales. The sales of pigment dispersions for color filters also exceeded those of the same period of the previous year due to strong sales, despite an adjustment to operating rates at panel manufacturers. The sales of toner exceeded those of the same period of the previous year due to strong sales. As a result, net sales amounted to 7,518 million yen (up 15.3% YoY).

      In terms of profit, operating income amounted to 607 million yen (up 0.2% YoY) primarily due to an increase in sales, despite an increase in expenses.

   2. Overview of financial position for the period under review

      Total assets at the end of the period under review increased 3,069 million yen (1.4%) from the end of the previous fiscal year to 228,933 million yen. This was mainly due to an increase in notes and accounts receivable - trade and the impact of foreign exchange translation resulting from the depreciation of the yen against foreign currencies compared with the end of the previous fiscal year, despite a decrease in inventories.

      Liabilities increased 1,166 million yen (1.2%) from the end of the previous fiscal year to 100,510 million yen. This was mainly due to an increase in loans payable and the impact of foreign currency translation, despite a decrease in notes and accounts payable - trade.

      Net assets increased 1,903 million yen (1.5%) from the end of the previous fiscal year to 128,423 million yen, primarily due to increases in retained earnings and foreign currency translation adjustment, despite the purchase of treasury shares.

   3. Consolidated forecast and other forward-looking statements

      The escalating tensions in the Middle East have heightened concerns over the outlook for the global economy. In particular, a closure of the Strait of Hormuz could lead to higher crude oil prices and increased costs of naphtha, an intermediate raw material, as well as concerns over raw material supply instability, which may also affect the Group's performance.

      Regarding raw materials, the deterioration in procurement conditions at the upstream supply chain has resulted in supply constraints and significant price increases. Under such circumstances, the Company will prioritize the stable supply of safe and high-quality products, while taking measures such as passing on cost increases to selling prices and switching to alternative raw materials. However, given the current high level of uncertainty surrounding the situation in the Middle East and its potential impact, it is difficult to assess the extent to which the supply and demand of printing inks and functional materials may be affected, and therefore to provide a reliable outlook at this stage.

      Based on these assumptions and taking into account the results for the period under review, we have decided to maintain our consolidated financial results forecast for the full year of the fiscal year ending December 31, 2026, which was announced on February 12, 2026. We will closely monitor future developments and promptly announce any revisions as necessary.

      2. Quarterly Consolidated Financial Statements and Principal Notes
      (1) Quarterly consolidated balance sheets	(Million yen)
      As of December 31, 2025	As of March 31, 2026
      Assets
      Current assets
      Cash and deposits 20,595	20,812
      Notes and accounts receivable - trade 62,526	64,504
      Merchandise and finished goods 19,850	19,354
      Work in process 1,700	1,559
      Raw materials and supplies 18,140	18,264
      Other 5,074	4,713
      Allowance for doubtful accounts (618)	(627)
      Total current assets 127,269	128,581
      Non-current assets
      Property, plant and equipment
      Buildings and structures, net 22,659	23,492
      Machinery, equipment and vehicles, net 12,383	13,696
      Land 10,389	10,413
      Leased assets, net 156	170
      Construction in progress 5,115	3,821
      Other, net 6,630	6,856
      Total property, plant and equipment 57,334	58,449
      Intangible assets
      Goodwill 1,315	1,282
      Other 5,837	5,846
      Total intangible assets 7,152	7,129
      Investments and other assets
      Investment securities 30,173	30,908
      Other 4,037	3,971
      Allowance for doubtful accounts (104)	(106)
      Total investments and other assets 34,107	34,772
      Total non-current assets 98,594	100,352
      Total assets 225,864	228,933

      (Million yen)

      	As of December 31, 2025	As of March 31, 2026
      Liabilities
      Current liabilities
      Notes and accounts payable - trade	25,437	27,037
      Electronically recorded obligations - operating	11,833	7,666
      Short-term loans payable	7,098	11,173
      Current portion of long-term loans payable	2,903	3,661
      Current portion of bonds payable	1,000	-
      Lease obligations	905	957
      Accrued expenses	7,688	6,757
      Income taxes payable	1,133	1,093
      Provision for bonuses	766	1,330
      Other	3,509	3,712
      Total current liabilities	62,275	63,391
      Non-current liabilities
      Long-term loans payable	18,895	18,713
      Lease obligations	2,797	2,928
      Deferred tax liabilities	5,994	5,901
      Retirement benefit liability	4,704	4,688
      Asset retirement obligations	76	75
      Other	4,600	4,810
      Total non-current liabilities	37,068	37,118
      Total liabilities	99,344	100,510
      Net assets
      Shareholders' equity
      Capital stock	7,472	7,472
      Capital surplus	5,828	5,828
      Retained earnings	91,590	92,442
      Treasury shares	(5,912)	(6,911)
      Total shareholders' equity	98,979	98,831
      Accumulated other comprehensive income
      Valuation difference on available-for-sale securities	1,582	1,630
      Deferred gains or losses on hedges	1	11
      Foreign currency translation adjustment	18,203	19,795
      Remeasurements of defined benefit plans	390	392
      Total accumulated other comprehensive income	20,178	21,830
      Non-controlling interests	7,361	7,761
      Total net assets	126,519	128,423
      Total liabilities and net assets	225,864	228,933

      1. Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income

         Quarterly consolidated statements of income

         (Million yen)

         	For the three months	For the three months
         	ended March 31, 2025	ended March 31, 2026
         Net sales	64,059	68,121
         Cost of sales	48,257	50,815
         Gross profit	15,801	17,305
         Selling, general and administrative expenses	11,944	13,132
         Operating income	3,857	4,173
         Non-operating income
         Interest income	57	74
         Dividend income	14	15
         Equity in earnings of associates	346	530
         Foreign exchange gains	137	168
         Other	130	116
         Total non-operating income	686	905
         Non-operating expenses
         Interest expenses	240	219
         Other	68	62
         Total non-operating expenses	308	282
         Ordinary income	4,234	4,796
         Extraordinary income
         Gain on sale of investment securities	0	14
         Total extraordinary income	0	14
         Extraordinary losses
         Loss on sale of investment securities	-	6
         Loss on valuation of investment securities	-	0
         Total extraordinary losses	-	6
         Income before income taxes	4,234	4,803
         Income taxes - current	1,112	1,236
         Income taxes - deferred	(299)	(79)
         Total income taxes	813	1,156
         Net income	3,421	3,647
         Net income attributable to non-controlling interests	343	332
         Net income attributable to owners of parent	3,078	3,314

         Quarterly consolidated statements of comprehensive income

         (Million yen)

         	For the three months	For the three months
         	ended March 31, 2025	ended March 31, 2026
         Net income	3,421	3,647
         Other comprehensive income
         Valuation difference on available-for-sale securities	(149)	29
         Deferred gains or losses on hedges	0	10
         Foreign currency translation adjustment	(3,951)	1,300
         Remeasurements of defined benefit plans, net of tax	(27)	5
         Share of other comprehensive income of associates accounted for using equity method	(1,305)	372
         Total other comprehensive income	(5,432)	1,718
         Comprehensive income	(2,010)	5,365
         Comprehensive income attributable to:
         Owners of parent	(1,976)	4,966
         Non-controlling interests	(34)	399

      2. Notes to quarterly consolidated financial statements
      Segment information, etc.

      1. For the three months ended March 31, 2025 (From January 1, 2025 to March 31, 2025)

         1. Information on amounts of sales and profit or loss and on revenue breakdown by reportable segment

            (Million yen)

            	Reportable segment						Other (*1)	Total	Adjustment (*2)	Amount recorded in quarterly consolidated statements of income (*3)
            	Printing Inks and Graphic Arts Materials (Japan)	Printing Inks (Asia)	Printing Inks (Americas)	Printing Inks (Europe)	Digital and Specialty Products	Total
            Revenues
            Revenues from contracts with customers	12,244	13,974	25,358	5,057	6,522	63,157	901	64,059	-	64,059
            Other revenues	-	-	-	-	-	-	-	-	-	-
            Sales to external customers Intersegment sales and transfers	12,244 243	13,974 43	25,358 220	5,057 183	6,522 -	63,157 691	901 1,188	64,059 1,880	- (1,880)	64,059 -
            Total	12,488	14,017	25,579	5,241	6,522	63,849	2,089	65,939	(1,880)	64,059
            Segment income	274	1,602	1,549	85	606	4,118	121	4,240	(383)	3,857

            (Notes) 1. The "Other" is a business segment not included in the reportable segments and contains the chemical products business, the display service business, and the brand protection solution business in Japan.

         2. The adjustment of negative 383 million yen to segment income includes elimination of intersegment transaction of 52 million yen and corporate expenses not allocated to each reportable segment of negative 435 million yen. Corporate expenses mainly consist of general and administrative expenses and research and development expenses that are not attributable to any reportable segment.

         3. Segment income is adjusted with operating income in the quarterly consolidated statements of income.

2. Information on impairment loss or goodwill on non-current assets by reportable segment

During the three months ended March 31, 2025, there are no significant impairment losses recognized on non-current assets, no significant changes recognized in the amount of goodwill, and no significant gains recognized on bargain purchases.

1. For the three months ended March 31, 2026 (From January 1, 2026 to March 31, 2026)

   1. Information on amounts of sales and profit or loss and on revenue breakdown by reportable segment

      (Million yen)

      	Reportable segment						Other (*1)	Total	Adjustment (*2)	Amount recorded in quarterly consolidated statements of income (*3)
      	Printing Inks and Graphic Arts Materials (Japan)	Printing Inks (Asia)	Printing Inks (Americas)	Printing Inks (Europe)	Digital and Specialty Products	Total
      Revenues
      Revenues from contracts with customers	11,937	14,283	27,466	6,057	7,498	67,244	876	68,121	-	68,121
      Other revenues	-	-	-	-	-	-	-	-	-	-
      Sales to external customers Intersegment sales and transfers	11,937 240	14,283 19	27,466 198	6,057 186	7,498 19	67,244 664	876 782	68,121 1,446	- (1,446)	68,121 -
      Total	12,177	14,303	27,664	6,243	7,518	67,908	1,658	69,567	(1,446)	68,121
      Segment income	564	1,659	1,287	227	607	4,347	52	4,399	(226)	4,173

      (Notes) 1. The "Other" is a business segment not included in the reportable segments and contains the chemical products business, the display service business, and the brand protection solution business in Japan.

   2. The adjustment of negative 226 million yen to segment income includes elimination of intersegment transaction of 103 million yen and corporate expenses not allocated to each reportable segment of negative 329 million yen. Corporate expenses mainly consist of general and administrative expenses and research and development expenses that are not attributable to any reportable segment.

   3. Segment income is adjusted with operating income in the quarterly consolidated statements of income.

1. Matters relating to change in reportable segments

   Beginning with the first quarter of the fiscal year under review, the Company has reclassified some segments of consolidated subsidiaries previously included in "Other" into the "Digital and Specialty Products" segment, following a partial review of internal management classifications within the Group.

   The segment information for the first three months of the previous fiscal year has been restated based on the revised segment classification.

2. Information on impairment loss or goodwill on non-current assets by reportable segment

During the three months ended March 31, 2026, there are no significant impairment losses recognized on non-current assets, no significant changes recognized in the amount of goodwill, and no significant gains recognized on bargain purchases.

The Company acquired a total of 396,300 shares of its own stock by March 31, 2026, based on the resolution of the Board of Directors meeting held on February 12, 2026. As a result, treasury shares increased by 999 million yen during the period under review.

As of March 31, 2026, treasury shares amounted to 6,911 million yen.

Not applicable

Quarterly consolidated statements of cash flows are not prepared for the period under review. Depreciation (including amortization related to intangible assets excluding goodwill) and amortization of goodwill for the three months ended March 31 are as follows.

(Million yen)