Consolidated Financial Report for the First Half Ended September 30, 2025

November 7, 2025

Company name: UBE Corporation Representative: Yuki Nishida,

President and Representative Director

Security code: 4208 (shares listed on Prime Section of Tokyo Stock Exchange)

URL: https://www.ube.com

Contact: Shuko Horie, General Manager of Corporate Communications Dept.

Tel: +81-3-5419-6110

(Amounts rounded to the nearest million yen)

(From April 1, 2025 to September 30, 2025)

1. Consolidated Operating Results (% indicates the rate of increase / decrease to the same period of previous year)

   	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
   April - September 2025	212,704	(12.5)%	8,250	36.4%	15,912	737.9%	10,886	-
   April - September 2024	243,039	11.4%	6,049	15.9%	1,899	(83.2)%	318	(96.5)%

   (Note) Comprehensive Income:	From April 1, 2025 to September 30, 2025:	18,153 Million Yen	-
   	From April 1, 2024 to September 30, 2024:	(2,979) Million Yen	-

   	Net income per share (Yen)	Diluted net income per share (Yen)
   April - September 2025	112.08	112.06
   April - September 2024	3.28	3.27

2. Consolidated Financial Position

(Reference) Shareholders' equity: As of September 30, 2025: 406,685 Million Yen

As of March 31, 2025: 395,078 Million Yen [Shareholders' equity = Net assets - Share acquisition rights - Non-controlling interests]

(Note) Revision of the latest forecast of cash dividends: No

1. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2026

   (From April 1, 2025 to March 31, 2026)

   (% indicates the rate of increase / decrease to the same period of previous year)

   	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent		Net income per share(Yen)
   April 2025 - March 2026	490,000	0.7%	25,000	38.5%	37,500	67.6%	27,500	-	283.15

   (Note) Revision of the latest forecast of consolidated financial results: No

   (Notes)

   1. Significant changes in the scope of consolidation during the first half ended September 30, 2025: Yes Newly included: 11

      URETHANE SYSTEMS USA LLC and 10 other companies

      (Note) For more details, please refer to "5. Consolidated Financial Statements (4) Notes to Consolidated Financial Statements (Significant changes in scope of consolidation during the first half ended September 30, 2025)".

   2. Adoption of special accounting methods for presenting consolidated financial statements: Yes

      (Note) For more details, please refer to "5. Consolidated Financial Statements (4) Notes to Consolidated Financial Statements (Application of the specific accounting methods for preparing the consolidated financial statements)".

   3. Changes in accounting policies applied, changes in accounting estimates and retrospective restatement Changes in accounting policies applied due to revisions of accounting standards: No

      Changes in accounting policies other than the above: No Changes in accounting estimates: No

      Retrospective restatement: No

   4. Number of shares outstanding (common stock)

      	September 30, 2025	March 31, 2025
      Numbers of shares outstanding at period end	106,200,107	106,200,107
      Numbers of shares of treasury stock at period end	9,060,001	9,079,297
      	April - September 2025	April - September 2024
      Weighted-average number of shares outstanding during period	97,128,995	97,083,989

      (Information regarding review procedures)

      The financial information contained in this report is not subject to review procedures by independent auditors.

      (Cautionary statement on forward-looking statements)

      The performance forecast and other forward-looking statements contained in this document and the attached materials have been prepared based on certain assumptions which are judged to be reasonable at this point. These statements are not intended as a guarantee of future performance. They may be substantially different from the actual performance because of various factors such as economic conditions in key markets, supply and demand of products, the prices of raw material and fuel, interest rates, and exchange rates.

2. Qualitative Information on Operating Results

   1. Overview of Operating Results

      During the first half ended September 30, 2025, net sales decreased due to sluggish sales of nylon polymers, caprolactam, etc. in the Polymers & Chemicals Segment, as well as the exclusion of the Steel Products Business from the scope of consolidation following the transfer of its management rights to another company in the third quarter of the previous fiscal year in the Machinery segment.

      Operating profit increased due to decline in raw material prices of elastomers and the absence of large-scale biennial maintenance of the ammonia product factory in the Polymers & Chemicals Segment, despite weak sales in the High Performance Urethane Segment, the Pharmaceutical Segment, the Machinery Segment, and the Specialty Products Segment.

      Ordinary profit increased, mainly due to an increase in operating profit, the absence of share of loss of entities accounted for using equity method recorded in the first half of the previous fiscal year following the decision to dissolve an equity-method affiliate in the Elastomer Business, and an improvement in foreign exchange gains.

      Profit attributable to owners of parent increased in line with the rise in ordinary profit.

      As a result, the Company Group reports its consolidated results during the current term as follows:

      (Billions of yen)
      Item	Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
      April - September 2025 ①	212.7	8.3	15.9	10.9
      April - September 2024 ②	243.0	6.0	1.9	0.3
      Difference ① - ②	(30.3)	2.2	14.0	10.6
      Percentage change	(12.5)%	36.4%	737.9%	-

      Overview by Segment

      Net sales				(Billions of yen)
      Segment	April - September 2024 ①	April - September 2025 ②	Difference ② － ①	Percentage Change
      Specialty Products	31.7	29.8	(1.9)	(5.9)%
      High Performance Urethane	7.4	17.0	9.7	131.4%
      Pharmaceutical	15.9	10.5	(5.4)	(33.9)%
      Polymers & Chemicals	137.8	118.5	(19.2)	(14.0)%
      Machinery	43.0	29.8	(13.3)	(30.8)%
      Others	20.7	16.7	(4.0)	(19.3)%
      Adjustment	(13.3)	(9.6)	3.7	-
      Total	243.0	212.7	(30.3)	(12.5)%

      Operating profit				(Billions of yen)
      Segment	April - September 2024 ①	April - September 2025 ②	Difference ② － ①	Percentage Change
      Specialty Products	5.0	4.3	(0.7)	(14.3)%
      High Performance Urethane	0.8	(0.6)	(1.3)	-
      Pharmaceutical	0.7	(0.5)	(1.2)	-
      Polymers & Chemicals	(2.5)	4.2	6.7	-
      Machinery	3.0	1.9	(1.1)	(36.6)%
      Others	1.0	1.0	0.0	0.8%
      Adjustment	(1.9)	(2.1)	(0.1)	-
      Total	6.0	8.3	2.2	36.4%

      (Note1) Starting from the fiscal year ending March 2026, the segments have been revised from the previous four segments of "Specialty Products," "Polymers & Chemicals," "Machinery," and "Others" to six segments of "Specialty Products," "High Performance Urethane," "Pharmaceutical," "Polymers & Chemicals," "Machinery," and "Others." The results for the first half of the fiscal year ended March 2025 are figures reflecting the segment reclassification.

      (Note2) Adjustment for operating profit includes corporate expenses (general expenses that are not distributed to each reportable segment) and internal transactions between the segments.

      Specialty Products - Decreases in both net sales and operating profit

      The Polyimide Business recorded a decrease in net sales due to the impact of reduced smartphone sales and customer inventory adjustments on the varnish business in the first quarter, despite recovery trends of varnish in the second quarter and continued strong film sales.

      The Separation Membrane Business recorded a decrease in net sales, despite the continued medium- to longterm growth trend in demand for CO2 separation membranes for biomethane production, because of the inventory adjustments by some customers and other factors.

      The Ceramics Business recorded a decrease in net sales due to sluggish sales of products for bearings and substrates resulting from the slowdown in growth in the electric vehicle market.

      The Separators Business recorded an increase in net sales due to an increase in sales volume in line with an increase in demand for products for hybrid vehicles.

      The Specialty Products Segment as a whole recorded decreases in both net sales and operating profit due to weak performance of polyimide, separation membranes, and ceramics despite solid performance of separators.

      High Performance Urethane - Increase in net sales and decrease in operating profit

      The Urethane Systems Business recorded an increase in net sales, resulting from its acquisition from Germany's LANXESS on April 1, 2025. As the companies operating this business have a December fiscal year-end, their performance for the April-June period has been reflected in the consolidated results of the second quarter of this fiscal year. Sales of products were strong, particularly in the U.S. market.

      The High-Performance Coatings Business recorded a decrease in net sales due to sluggish sales of the products in the overseas market.

      The High Performance Urethane Segment as a whole recorded an increase in net sales but a decrease in operating profit. This is due to sluggish sales in the High-Performance Coatings Business and costs related to post-merger integration (PMI) in the Urethane Systems Business, despite the effect of increased net sales of the Urethane Systems Business.

      Pharmaceutical - Decreases in both net sales and operating profit

      The Pharmaceutical Business recorded decreases in both net sales and operating profit due to a decrease in sales volume of the contract pharmaceuticals business.

      Polymers & Chemicals - Decrease in net sales and increase in operating profit

      • Performance Polymers & Chemicals Business

        The Composites Business recorded an increase in net sales due to an increase in sales volume resulting from a recovery trend in domestic demand for products for automobiles and the contribution of a European material recycled plastic manufacturer acquired in the third quarter of the previous fiscal year.

        The Nylon Polymer Business recorded a decrease in net sales mainly due to weak demand for nylon film for food packaging overseas, resulting in decreases in sales volume and selling prices.

        The Caprolactam & Ammonium Sulfate Business recorded a decrease in net sales due to a decrease in sales volume and a decline in selling prices caused by intensifying competition.

        The Industrial Chemicals Business recorded an increase in net sales due to higher sales volume resulting from the absence of large-scale biennial maintenance at the ammonia product factory.

      • The Elastomer Business recorded a decrease in net sales, mainly due to lower product market prices, which followed the falling prices of raw materials such as butadiene, despite solid product sales.

      • The Polymers & Chemicals Segment as a whole recorded a decrease in net sales and an increase in operating profit despite sluggish sales of nylon polymers, caprolactam, etc. thanks to the absence of large-scale biennial maintenance at the ammonia plant and a decline in raw material prices of elastomers.

      Machinery - Decreases in both net sales and operating profit

      The Molding Machine Business recorded an increase in net sales due to robust sales of products for the automobile industry and strong performance of after-sales services.

      The Industrial Machines Business recorded a decrease in net sales due to fewer large projects in product sales compared to the same period of the previous fiscal year, while performance of after-sales services was strong. The Machinery Segment as a whole recorded decreases in both net sales and operating profit because of the transfer of management rights of the Steel Products Business to another company in the third quarter of the previous fiscal year and sluggish product sales in the Industrial Machines business.

      Others - Decrease in net sales and increase in operating profit

      The Others Segment recorded a decrease in net sales as prices of electricity sold declined in line with the fall in coal prices in the Power Producer Business. However, operating profit remained at the same level as the same period of the previous fiscal year due to the absence of large-scale biennial maintenance at the in-house power plant.

      Cement-related Business (Equity-Method Affiliate "Mitsubishi UBE Cement Corporation")

      Although the domestic cement business showed steady performance thanks to the price adjustment that took effect in April 2025, share of profit of entities accounted for using equity method relating to the Cement-related business decreased due mainly to large-scale biennial maintenance implemented at the IPP power plant in the environment and energy business and a decrease in the sales volume of ready-mixed concrete in the overseas (North America) market.

   2. Overview of Financial Condition for the First Half of the Fiscal Year Total Assets

      Total assets increased by 165 million yen compared to the end of the previous fiscal year, to 865,834

      million yen. This is mainly due to increases in property, plant and equipment and intangible assets despite decreases in cash and deposits and investment securities.

      Liabilities

      Liabilities decreased by 11,961 million yen compared to the end of the previous fiscal year, to 441,695 million yen. This is mainly due to decreases in interest-bearing debt and other current liabilities.

      Net assets

      Net assets increased by 12,126 million yen compared to the end of the previous fiscal year, to 424,139 million yen. This was mainly due to an increase in retained earnings as profit attributable to owners of parent exceeded the amount of dividend payout and increases in both valuation difference on available-for-sale securities and foreign currency translation adjustment.

      As a result, shareholders' equity ratio increased by 1.4 to 47.0%, compared to the end of the previous fiscal year.

   3. Explanation Regarding Forecasts of Consolidated Results and Forward-Looking Information

      There have been no changes to the consolidated earnings forecast announced on May 12, 2025. However, the forecast for each segment has been revised as follows, taking into account recent market conditions.

      (Reference) Consolidated Net Sales and Operating Profit by Segment for the Fiscal Year ending March 2026

      (Unit: Billions of yen）

      Item	Segment	Fiscal Year Ending March 2026			The Previous Fiscal Year ended March 2025
      		Previous Forecast (A)	Revised Forecast (B)	Change (B)-(A)	Result
      Net Sales	Specialty Products	71.0	69.0	(2.0)	66.2
      	High Performance Urethane	51.0	50.5	(0.5)	15.6
      	Pharmaceutical	24.0	23.0	(1.0)	31.5
      	Polymers & Chemicals	257.0	257.0	0.0	273.6
      	Machinery	76.0	74.0	(2.0)	86.9
      	Others	35.5	35.5	0.0	39.2
      	Adjustment	(24.5)	(19.0)	5.5	(26.1)
      	Total	490.0	490.0	0.0	486.8
      Operating Profit	Specialty Products	13.5	12.5	(1.0)	11.7
      	High Performance Urethane	2.0	1.0	(1.0)	(0.2)
      	Pharmaceutical	1.0	0.0	(1.0)	1.2
      	Polymers & Chemicals	6.0	9.5	3.5	(0.7)
      	Machinery	6.5	6.5	0.0	7.9
      	Others	2.0	1.5	(0.5)	2.1
      	Adjustment	(6.0)	(6.0)	0.0	(3.8)
      	Total	25.0	25.0	0.0	18.0

      Note: The above earnings forecasts are based on certain assumptions judged to be reasonable by the Company when preparing this document. Actual results can differ from forecasts, due to changes in a wide variety of conditions.

3. Consolidated Financial Statements

   1. Consolidated Balance Sheets

      		(Millions of yen)
      As of March 31, 2025		As of September 30, 2025
      Assets
      Current assets
      Cash and deposits	115,969	44,709
      Notes and accounts receivable - trade, and contract assets	106,617	96,369
      Merchandise and finished goods	57,697	66,279
      Work in process	26,136	31,827
      Raw materials and supplies	38,156	38,383
      Other	13,939	13,325
      Allowance for doubtful accounts	(137)	(130)
      Total current assets	358,377	290,762
      Non-current assets
      Property, plant and equipment
      Buildings and structures, net	51,814	60,827
      Machinery, equipment and vehicles, net	72,314	78,622
      Land	37,431	40,907
      Other, net	61,142	71,293
      Total property, plant and equipment	222,701	251,649
      Intangible assets
      Goodwill	2,418	42,171
      Other	9,244	13,932
      Total intangible assets	11,662	56,103
      Investments and other assets
      Investment securities	225,502	218,606
      Other	47,420	48,698
      Allowance for doubtful accounts	(217)	(216)
      Total investments and other assets	272,705	267,088
      Total non-current assets	507,068	574,840
      Deferred assets	224	232
      Total assets	865,669	865,834

      		(Millions of yen)
      As of March 31, 2025		As of September 30, 2025
      Liabilities
      Current liabilities
      Notes and accounts payable - trade	48,258	52,113
      Short-term borrowings	70,838	63,984
      Commercial papers	8,996	-
      Current portion of bonds payable	10,000	10,000
      Income taxes payable	4,427	4,600
      Provision for bonuses	4,600	5,082
      Other provisions	671	661
      Other	49,929	39,250
      Total current liabilities	197,719	175,690
      Non-current liabilities
      Bonds payable	80,000	90,000
      Long-term borrowings	155,646	152,508
      Provisions	2,405	3,541
      Retirement benefit liability	4,711	5,232
      Asset retirement obligations	1,220	1,753
      Other	11,955	12,971
      Total non-current liabilities	255,937	266,005
      Total liabilities	453,656	441,695
      Net assets
      Shareholders' equity
      Share capital	58,435	58,435
      Capital surplus	40,363	40,360
      Retained earnings	260,914	266,458
      Treasury shares	(21,486)	(21,440)
      Total shareholders' equity	338,226	343,813
      Accumulated other comprehensive income
      Valuation difference on available-for-sale securities	7,555	10,337
      Deferred gains or losses on hedges	12	22
      Foreign currency translation adjustment	41,331	45,209
      Remeasurements of defined benefit plans	7,954	7,304
      Total accumulated other comprehensive income	56,852	62,872
      Share acquisition rights	24	24
      Non-controlling interests	16,911	17,430
      Total net assets	412,013	424,139
      Total liabilities and net assets	865,669	865,834

   2. Consolidated Statements of Income / Consolidated Statements of Comprehensive Income

      ・Consolidated Statements of Income

      For the first half ended September 30, 2024 and 2025

      		(Millions of yen)
      April 1, 2024 - September 30, 2024		April 1, 2025 - September 30, 2025
      Net sales	243,039	212,704
      Cost of sales	201,960	165,063
      Gross profit	41,079	47,641
      Selling, general and administrative expenses	35,030	39,391
      Operating profit	6,049	8,250
      Non-operating income
      Interest income	373	227
      Dividend income	285	256
      Rental income	419	450
      Share of profit of entities accounted for using equity method	-	7,911
      Foreign exchange gains	-	1,189
      Other	472	522
      Total non-operating income	1,549	10,555
      Non-operating expenses
      Interest expenses	636	1,667
      Rental expenses	245	242
      Share of loss of entities accounted for using equity method	1,412	-
      Foreign exchange losses	1,349	-
      Other	2,057	984
      Total non-operating expenses	5,699	2,893
      Ordinary profit	1,899	15,912
      Extraordinary income
      Gain on sale of non-current assets	330	-
      Gain on sale of investment securities	90	239
      Gain on liquidation of subsidiaries and associates	311	-
      Total extraordinary income	731	239
      Extraordinary losses
      Loss on disposal of non-current assets	577	374
      Impairment losses	21	1,471
      Loss on valuation of investment securities	16	-
      Loss on related business	-	302
      Total extraordinary losses	614	2,147
      Profit before income taxes	2,016	14,004
      Income taxes	1,403	2,530
      Profit	613	11,474
      Profit attributable to non-controlling interests	295	588
      Profit attributable to owners of parent	318	10,886

      ・Consolidated Statements of Comprehensive Income For the first half ended September 30, 2024 and 2025

      		(Millions of yen)
      April 1, 2024 - September 30, 2024		April 1, 2025 - September 30, 2025
      Profit	613	11,474
      Other comprehensive income
      Valuation difference on available-for-sale securities	(1,054)	918
      Deferred gains or losses on hedges	(11)	3
      Foreign currency translation adjustment	1,795	5,612
      Remeasurements of defined benefit plans, net of tax	(384)	(475)
      Share of other comprehensive income of entities accounted for using equity method	(3,938)	621
      Total other comprehensive income	(3,592)	6,679
      Comprehensive income	(2,979)	18,153
      Comprehensive income attributable to owners of parent	(4,288)	16,906
      Comprehensive income attributable to non-controlling interests	1,309	1,247

   3. Consolidated Statements of Cash Flows

      		(Millions of yen)
      April 1, 2024 - September 30, 2024		April 1, 2025 - September 30, 2025
      Cash flows from operating activities
      Profit before income taxes	2,016	14,004
      Depreciation and amortization	13,595	12,283
      Impairment losses	21	1,471
      Amortization of goodwill	125	803
      Increase (decrease) in allowance for doubtful accounts	2	(8)
      Interest and dividend income	(658)	(483)
      Interest expenses	636	1,667
      Share of loss (profit) of entities accounted for using equity method	1,412	(7,911)
      Loss (gain) on sale of non-current assets	(302)	(11)
      Decrease (increase) in trade receivables	9,464	17,829
      Decrease (increase) in inventories	(8,729)	(3,478)
      Increase (decrease) in trade payables	(3,127)	(1,366)
      Other, net	(6,971)	(7,364)
      Subtotal	7,484	27,436
      Interest and dividends received	2,037	10,201
      Interest paid	(601)	(1,622)
      Income taxes paid	(2,611)	(4,420)
      Net cash provided by (used in) operating activities	6,309	31,595
      Cash flows from investing activities
      Purchase of property, plant and equipment and intangible assets	(31,838)	(24,679)
      Proceeds from sale of property, plant and equipment	477	13
      Purchase of investment securities	(1)	(53)
      Proceeds from sale of investment securities	166	369
      Purchase of shares of subsidiaries and associates	(193)	-
      Purchase of shares of subsidiaries resulting in change in scope of consolidation	-	(71,532)
      Proceeds from withdrawal of investments in subsidiaries and associates	-	6,965
      Decrease (increase) in short-term loans receivable	(801)	-
      Payments into time deposits	(858)	(1,309)
      Proceeds from withdrawal of time deposits	-	1,368
      Other, net	(62)	63
      Net cash provided by (used in) investing activities	(33,110)	(88,795)
      Cash flows from financing activities
      Net increase (decrease) in short-term borrowings	7,339	(5,713)
      Net increase (decrease) in commercial papers	8,998	(8,996)
      Proceeds from long-term borrowings	30,381	5,306
      Repayments of long-term borrowings	(11,116)	(10,232)
      Proceeds from issuance of bonds	-	9,955
      Redemption of bonds	(10,000)	-
      Purchase of treasury shares	(4)	(2)
      Dividends paid	(5,324)	(5,326)
      Dividends paid to non-controlling interests	(726)	(728)
      Other, net	(351)	(336)
      Net cash provided by (used in) financing activities	19,197	(16,072)
      Effect of exchange rate change on cash and cash equivalents	298	1,992
      Net increase (decrease) in cash and cash equivalents	(7,306)	(71,280)
      Cash and cash equivalents at beginning of period	35,859	115,442
      Cash and cash equivalents at end of period	28,553	44,162

   4. Notes to Consolidated Financial Statements

      (Significant changes in scope of consolidation during the first half ended September 30, 2025)

      URETHANE SYSTEMS USA LLC and 10 other companies have been included in the scope of consolidation from the first half of the current consolidated fiscal year, as they became subsidiaries through share acquisition.

      (Application of the specific accounting methods for preparing the consolidated financial statements) (Calculation of tax expenses)

      Tax expenses are calculated by estimating an effective tax rate for net income, based on reasonable assumptions, after application of tax effect accounting for net income before tax for the consolidated fiscal year, including the current term, and by multiplying the net income before tax by the estimated tax rate of net income. However, for subsidiaries for which calculating tax expenses using the said estimation of the effective tax rate would significantly lack rationality, tax expenses are calculated by using the statutory effective tax rate.

      Income taxes adjustment is included in income taxes.

      (Segment Information)

      1. Information Concerning Net Sales and Operating Profit by Reportable Business Segment

         For the First Half Ended September 30, 2024 (April 1, 2024 to September 30, 2024) (Millions of yen)

         	Reportable segment							Adjustment (note 1)	Amount recorded in consolidated statements of income (note 2)
         	Specialty Products	High Performance Urethane	Pharmaceutical	Polymers & Chemicals	Machinery	Others	Total
         Net sales
         External sales	24,386	7,135	15,045	128,672	42,759	25,042	243,039	-	243,039
         Internal sales or transfers	7,291	229	815	9,080	282	(4,362)	13,335	(13,335)	-
         Total	31,677	7,364	15,860	137,752	43,041	20,680	256,374	(13,335)	243,039
         Segment profit or loss (operating profit or loss)	4,960	774	712	(2,477)	2,973	1,029	7,971	(1,922)	6,049

         (Note 1) (1,922) million yen for adjustment for Segment profit or loss includes (133) million yen for the elimination of transaction between the Segments, and (1,789) million yen for company-wide cost that is not allocated to each reported Segment. Company-wide cost consists mainly of administration and general expense that is not attributed to each reported Segment.

         (Note 2) Segment profit or loss is adjusted with operating profit recorded in the consolidated statements of income.

         For the First Half Ended September 30, 2025 (April 1, 2025 to September 30, 2025) (Millions of yen)

         	Reportable segment							Adjustment (note 1)	Amount recorded in consolidated statements of income (note 2)
         	Specialty Products	High Performance Urethane	Pharmaceutical	Polymers & Chemicals	Machinery	Others	Total
         Net sales
         External sales	24,701	16,781	10,475	107,516	29,636	23,595	212,704	-	212,704
         Internal sales or transfers	5,115	256	1	11,013	138	(6,908)	9,615	(9,615)	-
         Total	29,816	17,037	10,476	118,529	29,774	16,687	222,319	(9,615)	212,704
         Segment profit or loss (operating profit or loss)	4,253	(565)	(483)	4,178	1,886	1,037	10,306	(2,056)	8,250

         (Note 1) (2,056) million yen for adjustment for Segment profit or loss includes 632 million yen for the elimination of transaction between the Segments and (2,688) million yen for company-wide cost that is not allocated to each reported Segment. Company-wide cost consists mainly of administration and general expense that is not attributed to each reported Segment.

         (Note 2) Segment profit or loss is adjusted with operating profit recorded in the consolidated statements of income.

      2. Matters Related to Changes in Reportable Segments

         Starting from the first half of the fiscal year ending March 2026, the reportable segments have been revised from the previous four segments: "Specialty Products," "Polymers & Chemicals," "Machinery," and "Others" to six segments: "Specialty Products," "High Performance Urethane," "Pharmaceutical," "Polymers & Chemicals," "Machinery," and "Others" following the change in management control categories.

         Segment information for the first half of the previous consolidated fiscal year has been prepared based on the classification after the revision.

      3. Information Concerning Impairment Losses of Fixed Assets or Goodwill, etc. by Reportable Segment (Significant Change in the Amount of Goodwill)

In the High Performance Urethane segment, the Company acquired all shares of subsidiaries engaged in the urethane systems business from LANXESS Deutschland GmbH. As a result of this transaction, goodwill increased by 39,845 million yen during the first half of the current consolidated fiscal year. The amount of goodwill has been provisionally calculated, as the allocation of the acquisition cost had not been finalized as of the end of the first half of the current consolidated accounting period.

(Note to significant changes in shareholders' equity) None.

(Note to events and conditions which indicate there could be substantial doubt about going concern assumption)

None.

(Reference) Consolidated Key Indicators (Billions of yen - except where noted)

*1 Adjusted operating profit: Operating profit + Interest and dividend income + Share of profit (loss) of entities accounted for using equity method

*2 Shareholders' equity: Net assets - Share acquisition rights - Non-controlling interests

*3 ROS: Operating profit / Net sales

*4 ROA: Adjusted operating profit / Average total assets

*5 ROE: Profit attributable to owners of parent / Average shareholders' equity

*6 ROIC: (Net operating profit after tax + Share of profit (loss) of entities accounted for using equity method) / Average invested capital* (Invested capital: Interest-bearing debt + Shareholders' equity)