Nitto Denko Corp.TSE: 6988

Quarterly Financial Summary Second Quarter FY2026

· Issued by Nitto Denko Corp.

Date: October 27, 2026

Summary of Consolidated Financial Statements

for the Second Quarter Ended September 30, 2026 (IFRS Basis)

Listed company name:

Nitto Denko Corporation

Stock exchange listing:

Tokyo Stock Exchange, Prime Market

Code Number:

6988

URL

https://www.nitto.com/

Company Representative: Tatsuya Akagi, President

Contact Person: Yasuhiro Iseyama, Senior Executive Vice President, Director of Corporate Accounting & Finance Division Phone: +81-6-7632-2101

Filing date of semi-annual securities report: October 28, 2026 Estimated starting date of dividend paying: November 27, 2026 Preparation of supplementary explanatory materials: Yes

Holding of earnings release conference: Yes (for investment analysts and institutional investors)

(All monetary values noted herein are rounded down to the nearest million yen)

  1. Consolidated financial results for the six months ended September 30, 2026

    1. Operating results (% of change from same period in the previous year)

      Revenue

      Operating profit

      Profit before income taxes

      Net profit

      Net profit attributable to owners of the parent company

      Total comprehensive income

      For the six months ended September 30, 2026

      For the six months ended

      September 30, 2025

      Millions

      of yen

      %

      Millions

      of yen

      %

      Millions

      of yen

      %

      Millions

      of yen

      %

      Millions

      of yen

      %

      Millions

      of yen

      %

      558,363

      513,569

      8.7

      (1.6)

      105,841

      94,504

      12.0

      (13.5)

      106,430

      95,167

      11.8

      (12.6)

      76,533

      68,955

      11.0

      (13.8)

      76,502

      68,926

      11.0

      (13.8)

      72,724

      83,608

      (13.0)

      45.0

      Basic earnings per share

      Diluted earnings per share

      Yen

      Yen

      For the six months ended

      September 30, 2026

      115.32

      115.27

      For the six months ended

      September 30, 2025

      101.32

      101.28

    2. Financial position

      Total assets

      Total equity

      Equity attributable to owners of the parent company

      Ratio of equity attributable to owners of the parent company to total assets

      Millions of yen

      Millions of yen

      Millions of yen

      %

      As of September 30, 2026

      1,459,122

      1,151,713

      1,150,613

      78.9

      As of March 31, 2026

      1,441,757

      1,149,103

      1,148,027

      79.6

  2. Dividends

    Dividends per share

    1Q

    2Q

    3Q

    Year-end

    Annual

    March, 2026

    March, 2027

    Yen

    -

    -

    Yen 30.00

    36.00

    Yen

    -

    Yen

    30.00

    Yen

    60.00

    (Forecast)

    March, 2027

    -

    36.00

    72.00

    (Note) 1. Revision of dividend forecast in the current quarter: Yes

    2. For detailed information, please refer to "Notice Regarding Dividends from Surplus (Interim Dividend), Revision of Year-End Dividend Forecast (Dividend Increase), and Share Repurchase" released on October 27, 2026.

  3. Forecast for fiscal year ending March 31, 2027

(% of change from same period in the previous year)

Revenue

Operating profit

Profit before income taxes

Net profit

Net profit attributable to owners of the parent company

Basic earnings per share

Annual

Millions of yen

1,110,000

% 8.0

Millions of yen

200,000

% 8.9

Millions of yen

200,000

% 8.1

Millions of yen

142,000

% 6.3

Millions of yen

142,000

% 6.4

Yen 216.29

(Note) 1. Revision of consolidated forecast in the current quarter: No

2. The Company resolved to acquire treasury shares at the Board of Directors meetings held on March 30, 2026 and October 27, 2026. The forecast for basic earnings per share for the fiscal year ending March 31, 2027 reflects the impact of this share repurchase.

  • Others

    1. Significant changes in the scope of consolidation during the period: No

    2. Changes in accounting policies applied and changes in accounting estimates

      1. Changes in accounting policies required by IFRS: No

      2. Changes in accounting policies other than the above: No

      3. Changes in accounting estimates: No

    3. Number of issued shares (Common stock)

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

        As of September 30, 2026: 678,659,700 As of March 31, 2026: 678,659,700

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

        As of September 30, 2026: 20,472,050 As of March 31, 2026: 4,999,950

      3. Average number of issued shares during the period (cumulative from the beginning of the period) April-September 2026: 663,371,100 April-September 2025: 680,298,516

  • These semi-annual securities reports are not subject to review procedures by Certified Public Accountants or audit firm.

  • Explanations for adequate utilization of the forecast and other special matters

The forward-looking statements shown in this report, including the forecast, are prepared based on information available to the Company and on certain assumptions deemed reasonable as of the issuing date of the report. Consequently, the statements herein do not constitute promises regarding actual results by the Company. Actual results may differ materially from forecasted figures due to various unknown factors. For conditions regarding this forecast and precaution for use, please refer to "1. Overview of operating results, etc. (3) Explanation of forecasts and other projections" on page 6 of the Attachment to this summary of consolidated financial results.

(Attached Documents) Index

  1. Overview of operating results, etc. 2

    1. Overview of operating results during the period 2

    2. Overview of financial position during the period. 6

    3. Explanation of forecasts and other projections. 6

  2. Interim Consolidated Financial Statements and Key Notes. 7

    1. Interim consolidated statement of financial position. 7

    2. Interim consolidated statement of profit or loss and interim consolidated statement of comprehensive income. 9

    3. Interim consolidated statement of changes in equity. 11

    4. Interim consolidated statement of cash flows. 12

    5. Notes on interim consolidated financial statements. 13

(Notes on going concern assumption). 13

(Notes on interim consolidated financial statements). 13

(Additional information). 14

(Segment information). 15

(Notes on dividends). 17

(Equity and other equity items). 17

(Revenue). 18

(Per share information). 20

(Significant subsequent events). 20

  1. Overview of operating results, etc
    1. Overview of operating results during the period

      During the six months ended September 30, 2026 (April 1, 2026 through September 30, 2026), the economic environment remained uncertain due to rising energy prices and heightened inflationary pressures stemming from escalating tensions in the Middle East, as monetary tightening was observed in major economies. At the same time, increased capital investment, particularly in AI and digital-related sectors, supported economic activity, resulting in generally resilient conditions despite regional disparities. In the United States, the economy remained strong, supported by capital investment and productivity improvements related to AI data centers, stable employment conditions, and steady personal consumption. In Europe, rising energy prices and mounting inflationary pressures weighed on economic activity; however, the impact was partially mitigated by increased fiscal spending. In China, while domestic demand remained weak, particularly in the real estate market, economic activity was supported by expanding capital investment and export growth in high-tech industries. In Japan, although inflationary pressures associated with yen depreciation and rising resource prices remained a concern, improvements in employment and income conditions, together with increased capital investment mainly in semiconductor and electronic component-related industries, helped support the economy.

      Under these circumstances, in the key markets of Nitto Group (the "Group"), demand for materials used in data centers and semiconductors increased, supported by the expansion of the AI data center-related market, and demand for materials used in high-end smartphones also remained strong. In addition, the Group was able to mitigate the impact of higher raw material costs on earnings to a certain extent through pricing actions and other measures.

      Separately, the yen's exchange rate against the U.S. dollar for the six months ended September 30, 2026, was 160.5 yen to the dollar, a 9.6% depreciation of the yen compared with the same period of the previous year, and the effect of the weaker yen increased operating profit by 19.6 billion yen.

      As a result of the above, revenue increased by 8.7% from the same period of the previous year (changes hereafter are given in comparison with the same period of the previous year) to 558,363 million yen. Operating profit increased by 12.0% to 105,841 million yen, profit before income taxes increased by 11.8% to 106,430 million yen, net profit increased by 11.0% to 76,533 million yen, and net profit attributable to owners of the parent company increased by 11.0% to 76,502 million yen.

      Summary of results by segment

      ① Industrial Tape

      In Functional Base Products, revenue increased from the same period of the previous year. Demand for assembly materials used in high-end smartphones increased, due to the expansion of models adopting electric debonding tape for battery bonding. In addition, demand for process materials used in the production of semiconductor memories and ceramic capacitors increased, driven by growing AI data center demand. In general industrial materials and automotive materials, the Group continued to take pricing actions in response to higher raw material costs.

      As a result of the above, revenue increased by 16.1% to 208,112 million yen and operating profit increased by 51.3% to 35,832 million yen.

      ② Optronics

      In Information Fine Materials, revenue did not reach the level of the same period of the previous year. Demand for optical films used in automotive displays, a growth area, remained strong. On the other hand, demand for optical films used in high-end laptop PCs and tablets decreased significantly due to production adjustments by customers resulting from rising memory semiconductor prices.

      In Circuit Materials, revenue increased from the same period of the previous year. For high-precision circuits used in high-end smartphones, the launch of the Company's new products contributed to revenue growth. Additionally, demand for Circuit Integrated Suspension (CIS) used in Hard Disk Drives (HDDs) with higher capacity for data centers was robust, driven by the growing adoption of generative AI.

      As a result of the above, revenue increased by 0.3% to 270,715 million yen and operating profit decreased by 4.1% to 73,950 million yen.

      ③ Human Life

      In Life Science, revenue increased from the same period of the previous year. Against the backdrop of the expanding oligonucleotide therapeutics market, production of a large-scale project in oligonucleotide contract manufacturing, which had transitioned to the commercial production stage in the second quarter of the previous fiscal year, contributed to revenue growth. For nucleic acid synthesis materials (NittoPhase™), demand increased as the global expansion of customers' commercial drugs progressed.

      In Membrane (high-polymer separation membrane), revenue increased from the same period of the previous year. Demand for high-polymer separation membranes used in wastewater treatment increased particularly in India, driven by tightened wastewater discharge regulations in emerging markets.

      In Personal Care Materials, revenue increased from the same period of the previous year. The Group promoted new products in hygiene materials for diapers and environmentally friendly products using biodegradable technologies.

      As a result of the above, revenue increased by 21.0% to 84,271 million yen and operating profit amounted to 1,020 million yen. (operating loss of 1,598 million yen was reported in the same period of the previous year)

      ④ Others

      Please note that this segment includes other products that have not generated sufficient revenue yet. The Group is concentrating its management resources on themes that are candidates for PlanetFlags™/HumanFlags™ in areas of advanced semiconductors, environmental solutions, and medical devices, with the aim of commercializing them as early as possible.

      As a result of the above, revenue increased by 116.2% to 18 million yen and operating loss amounted to 4,102 million yen. (operating loss of 3,490 million yen was reported in the same period of the previous year)

      (Reference) Segment Information (Millions of yen)

      For the six months ended September 30, 2025

      For the six months ended September 30, 2026

      Industrial Tape

      Optronics

      Human Life

      Others Adjustment Total

      Revenue Revenue Y-o-Y (%)

      Revenue 179,189 208,112 116.1

      Operating profit 23,683 35,832 151.3

      Information Fine Materials 200,101 173,681 86.8

      Circuit Materials 69,758 97,034 139.1

      Total 269,859 270,715 100.3

      Operating profit 77,086 73,950 95.9

      Life Science 24,988 32,801 131.3

      Membrane 16,740 18,344 109.6

      Personal Care Materials 27,890 33,124 118.8

      Total 69,619 84,271 121.0

      Operating profit (1,598) 1,020 -

      Revenue 8 18 216.2

      Operating profit (3,490) (4,102) -

      Revenue (5,107) (4,753) -

      Operating profit (1,176) (859) -

      Revenue 513,569 558,363 108.7

      Operating profit 94,504 105,841 112.0

      (Reference) Segment Information (annual forecast) (Millions of yen)

      For the year ended (Results) March 31, 2026

      Forecasts of fiscal year ending March 31, 2027

      Industrial Tape

      Optronics

      Human Life

      Others Adjustment Total

      Revenue Revenue Y-o-Y (%)

      Revenue 366,607 417,000 113.7

      Operating profit 51,662 71,000 137.4

      Information Fine Materials 386,234 346,000 89.6

      Circuit Materials 141,577 186,500 131.7

      Total 527,812 532,500 100.9

      Operating profit 149,871 142,500 95.1

      Life Science 54,011 64,500 119.4

      Membrane 33,409 37,500 112.2

      Personal Care Materials 56,280 68,500 121.7

      Total 143,702 170,500 118.6

      Operating profit (5,041) 1,700 -

      Revenue 11 700 5,956.4

      Operating profit (6,971) (7,900) -

      Revenue (9,961) (10,700) -

      Operating profit (5,905) (7,300) -

      Revenue 1,028,171 1,110,000 108.0

      Operating profit 183,615 200,000 108.9

    2. Overview of financial position during the period

      The Group's financial position at the end of the second quarter of the fiscal year ending March 31, 2027 was as follows. Compared with the end of the fiscal year ended March 31, 2026, total assets increased by 17,365 million yen to 1,459,122 million yen and total liabilities increased by 14,755 million yen to 307,409 million yen. Total equity increased by 2,609 million yen to 1,151,713 million yen. This was mainly due to a 56,292 million yen increase in retained earnings, a 50,091 million yen increase in treasury shares and a 3,590 million yen decrease in other components of equity from the end of the fiscal year ended March 31, 2026. As a result, the ratio of equity attributable to owners of the parent company to total assets changed from 79.6% at the end of the fiscal year ended March 31, 2026 to 78.9% at the end of the second quarter of the fiscal year ending March 31, 2027.

      The main changes in assets were a decrease in cash and cash equivalents of 27,446 million yen, an increase in trade and other receivables of 19,337 million yen, an increase in inventories of 5,404 million yen, an increase in other financial assets of 6,585 million yen, an increase in other current assets of 5,957 million yen, an increase in property, plant and equipment of 7,474 million yen, a decrease in goodwill of 1,653 million yen, an increase in financial assets of 1,268 million yen, a decrease in deferred tax assets of 1,172 million yen. In terms of liabilities, trade and other payables increased by 3,796 million yen, income tax payables increased by 5,564 million yen, other current financial liabilities decreased by 9,660 million yen, other current liabilities increased by 10,834 million yen, deferred tax liabilities increased by 2,777 million yen.

    3. Explanation of forecasts and other projections

      There is no change to the Group's consolidated forecasts for the fiscal year ending March 31, 2027. However, while demand for materials used in data centers, semiconductors, and high-end smartphones is expected to exceed previous expectations, demand for optical films used in high-end laptop PCs and tablets has been weaker than expected. Accordingly, the Group has revised its segment forecasts announced on July 28, 2026.

  2. Interim Consolidated Financial Statements and Key Notes

    1. Interim consolidated statement of financial position

      Assets

      Current assets

      (Millions of yen)

      As of March 31, 2026 As of September 30, 2026

      Cash and cash equivalents

      359,805

      332,359

      Trade and other receivables

      231,880

      251,217

      Inventories

      157,870

      163,274

      Other financial assets

      19,436

      26,022

      Other current assets

      28,301

      34,259

      Total current assets

      797,294

      807,133

      Noncurrent assets

      Property, plant and equipment

      466,960

      474,435

      Right-of-use assets

      20,608

      21,239

      Goodwill

      64,125

      62,471

      Intangible assets

      16,942

      17,728

      Investments accounted for using equity method

      6,687

      6,488

      Financial assets

      13,516

      14,785

      Deferred tax assets

      19,095

      17,922

      Other noncurrent assets

      36,526

      36,917

      Total noncurrent assets

      644,463

      651,989

      Total assets

      1,441,757

      1,459,122

      Liabilities and Equity Liabilities

      Current liabilities

      (Millions of yen)

      As of March 31, 2026 As of September 30, 2026

      Trade and other payables

      103,605

      107,402

      Income tax payables

      17,932

      23,497

      Other financial liabilities

      39,828

      30,168

      Other current liabilities

      64,604

      75,438

      Total current liabilities

      225,970

      236,506

      Noncurrent liabilities

      Other financial liabilities

      21,711

      22,506

      Defined benefit liabilities

      29,809

      30,273

      Deferred tax liabilities

      11,780

      14,557

      Other noncurrent liabilities

      3,381

      3,565

      Total noncurrent liabilities

      66,683

      70,902

      Total liabilities

      292,653

      307,409

      Equity

      Equity attributable to owners of the parent company

      Share capital

      26,783

      26,783

      Capital surplus

      49,934

      49,910

      Retained earnings

      912,008

      968,300

      Treasury shares

      (13,849)

      (63,940)

      Other components of equity

      173,150

      169,559

      Total equity attributable to owners of the parent

      company

      1,148,027

      1,150,613

      Noncontrolling interests

      1,075

      1,099

      Total equity

      1,149,103

      1,151,713

      Total liabilities and equity

      1,441,757

      1,459,122

    2. Interim consolidated statement of profit or loss and Interim consolidated statement of comprehensive income (Interim consolidated statement of profit or loss)

      (Millions of yen)

      For the six months ended For the six months ended

      September 30, 2025

      September 30, 2026

      Revenue

      513,569

      558,363

      Cost of sales

      316,246

      346,175

      Gross profit

      197,323

      212,188

      Selling, general and administrative expenses

      75,351

      80,355

      Research and development expenses

      23,286

      26,020

      Other income

      4,157

      5,268

      Other expenses

      8,338

      5,239

      Operating profit

      94,504

      105,841

      Finance income

      1,583

      2,107

      Finance expenses

      994

      1,518

      Share of profit of investments accounted for using the equity method

      74

      -

      Profit before income taxes

      95,167

      106,430

      Income tax expenses

      26,212

      29,897

      Net profit

      68,955

      76,533

      Net profit attributable to:

      Owners of the parent company

      68,926

      76,502

      Noncontrolling interests

      28

      31

      Total

      68,955

      76,533

      Earnings per share attributable to owners of the parent company

      Basic earnings per share (Yen)

      101.32

      115.32

      Diluted earnings per share (Yen)

      101.28

      115.27

      (Interim consolidated statement of comprehensive income)

      (Millions of yen)

      For the six months ended September 30, 2025

      For the six months ended September 30, 2026

      Net profit 68,955 76,533

      Other comprehensive income

      Items that will not be reclassified to profit or loss

      Net changes on financial assets measured at fair value

      through other comprehensive income Items that may be reclassified to profit or loss

      Exchange differences on translation of foreign operations

      50 (27)

      14,750 (3,692)

      Net changes in fair value of cash flow hedges (0) 0

      Share of other comprehensive income of investments

      accounted for using equity method

      (146) (89)

      Total other comprehensive income

      14,653

      (3,809)

      Total comprehensive income

      83,608

      72,724

      Total comprehensive income attributable to: Owners of the parent company

      83,579

      72,691

      Noncontrolling interests

      29

      32

      Total

      83,608

      72,724

    3. Interim consolidated statement of changes in equity For the six months ended September 30, 2025

Equity attributable to owners of the parent company

(Millions of yen)

Share capital

Capital surplus

Retained earnings

Treasury shares

Other components of equity

Total

Noncontrolling interests

Total equity

Balance as of April 1, 2025

26,783

49,934

890,040

(31,799)

109,124

1,044,083

1,031

1,045,114

Net profit

-

-

68,926

-

-

68,926

28

68,955

Other comprehensive

income

-

-

-

-

14,652

14,652

1

14,653

Total comprehensive income

-

-

68,926

-

14,652

83,579

29

83,608

Share based remuneration transactions

-

19

-

-

(287)

(267)

-

(267)

Dividends

-

-

(19,458)

-

-

(19,458)

(19)

(19,477)

Changes in treasury

shares

-

-

-

(59,885)

-

(59,885)

-

(59,885)

Total transactions with owners

-

19

(19,458)

(59,885)

(287)

(79,611)

(19)

(79,630)

Balance as of September 30, 2025

26,783

49,953

939,508

(91,684)

123,489

1,048,051

1,041

1,049,092

For the six months ended September 30, 2026

Equity attributable to owners of the parent company

(Millions of yen)

Share capital

Capital surplus

Retained earnings

Treasury shares

Other components of equity

Total

Noncontrolling interests

Total equity

Balance as of April 1, 2026

26,783

49,934

912,008

(13,849)

173,150

1,148,027

1,075

1,149,103

Net profit

-

-

76,502

-

-

76,502

31

76,533

Other comprehensive

income

-

-

-

-

(3,810)

(3,810)

1

(3,809)

Total comprehensive income

-

-

76,502

-

(3,810)

72,691

32

72,724

Share based remuneration transactions

-

(11)

-

-

219

208

-

208

Dividends

-

-

(20,209)

-

-

(20,209)

(8)

(20,218)

Changes in treasury

shares

-

(12)

-

(50,091)

-

(50,104)

-

(50,104)

Total transactions with owners

-

(23)

(20,209)

(50,091)

219

(70,105)

(8)

(70,114)

Balance as of September 30, 2026

26,783

49,910

968,300

(63,940)

169,559

1,150,613

1,099

1,151,713

(4) Interim consolidated statement of cash flows

(Millions of yen)

For the six months ended September 30, 2025

For the six months ended September 30, 2026

Cash flows from operating activities

Profit before income taxes

95,167

106,430

Depreciation and amortization

34,481

39,493

Impairment losses

2,153

1,056

Increase (decrease) in defined benefit liabilities

512

249

Decrease (increase) in trade and other receivables

(22,222)

(20,397)

Decrease (increase) in inventories

(6,353)

(5,583)

Increase (decrease) in trade and other payables

12,479

4,085

Increase (decrease) in advances received

(166)

8,757

Interest and dividend income

1,483

2,039

Interest expenses paid

(538)

(671)

Income taxes (paid) refunded

(31,734)

(19,676)

Others

(10,258)

(6,937)

Net cash provided by (used in) operating activities

75,003

108,847

Cash flows from investing activities

Purchase of property, plant and equipment and intangible assets

(51,088) (56,502)

Proceeds from sale of property, plant and equipment

and intangible assets

Decrease (increase) in time deposits

630

(3,550)

1,702

(6,809)

Purchase of investment securities

(2,353)

(989)

Others

13

9

Net cash provided by (used in) investing activities

(56,348)

(62,589)

Cash flows from financing activities

Net increase (decrease) in short-term borrowings

59

-

Repayment of lease liabilities

(3,330)

(3,853)

Decrease (increase) in treasury shares

(60,287)

(50,183)

Cash dividends paid

(19,458)

(20,209)

Others

(15)

(8)

Net cash provided by (used in) financing activities

(83,031)

(74,255)

Effect of exchange rate changes on cash and cash

equivalents

4,217

550

Net increase (decrease) in cash and cash equivalents

(60,158)

(27,446)

Cash and cash equivalents at the beginning of the period

363,344

359,805

Cash and cash equivalents at the end of the period

303,185

332,359

(5) Notes on interim consolidated financial statements

(Notes on going concern assumption) Not applicable.

(Notes on interim consolidated financial statements)

  1. Reporting entity

    Nitto Denko Corporation (the "Company") is a corporation domiciled in Japan. The interim consolidated financial statements above comprise the Company and its subsidiaries (the "Group") and the Group's affiliates. The Group is engaged mainly in the "Industrial Tape business," the "Optronics business," the "Human Life business," and "Others" (related businesses with a broad range of products). See "Segment information," for details.

  2. Basis of preparation

    1. Accounting standards compliance

      The Group's interim consolidated financial statements, which meet the requirements of a "specified company complying with any designated international accounting standards" defined in Article 1-2 of the Regulation on Consolidated Financial Statements, have been prepared in accordance with IAS 34 as prescribed in Article 312 of the Regulation on Consolidated Financial Statements. The interim consolidated financial statements should be read in conjunction with the Group's consolidated financial statements for the fiscal year ended March 31, 2026, since the interim consolidated financial statements do not include all the information required in the annual consolidated financial statements.

    2. Presentation currency and units

      The interim consolidated financial statements are presented in Japanese yen and figures less than a million yen are rounded down to the nearest million yen.

    3. Significant accounting estimates and judgments

      When preparing the interim consolidated financial statements, management makes judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may vary from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis, and the effect of revised accounting estimates is recognized in the current and future accounting periods.

      The interim consolidated financial statements are prepared based on the same judgments, estimations and assumptions as those applied and described in the Group's consolidated financial statements for the fiscal year ended March 31, 2026.

    4. Approval of the interim consolidated financial statements

      The interim consolidated financial statements were approved by Tatsuya Akagi, President, and Yasuhiro Iseyama, CFO on October 27, 2026.

  3. Material accounting policies

Material accounting policies implemented in the interim consolidated financial statements are the same as the accounting policies implemented in the Group's consolidated financial statements for the fiscal year ended March 31, 2026.

(Additional information) (Cancellation of treasury shares)

The Company resolved at the Board of Directors meeting held on September 30, 2026, to cancel a part of its treasury shares, in accordance with the basic policy on the holding and cancellation of its treasury shares, pursuant to the provisions of Article 178 of the Japanese Companies Act, as follows.

  1. Details on the cancellation of the treasury shares

    ① Class of shares to be cancelled: Common stock

    ② Number of shares to be cancelled: 15,472,050 shares

    (Ratio to the number of issued shares before cancellation: 2.28%)

    ③ Cancellation date: October 20, 2026

  2. Basic Policy on the Holding and Cancellation of Treasury Shares

The number of treasury shares held by the Company increased due to the repurchase under the provisions of the Article 165 of the Japanese Companies Act conducted from April to August 2026. Therefore, we will cancel a part of the treasury shares based on our basic policy regarding holding and cancellation of treasury shares: "The Company's treasury shares that have been repurchased will continue to be held on the condition that their specific uses have been clearly defined (e.g., remuneration for Directors), and cancellation will be considered for any shares exceeding the required amount."

(Segment information)

  1. Outline of reportable segments

    Reportable segments of the Group are determined as segments whose separate financial information is available among the constituent units of the Group and which are regularly used by the Board of Directors, the chief operating decision maker, to determine the allocation of management resources and to evaluate their business results.

    The Group has divisions by product, and each division develops comprehensive domestic and overseas strategies for its products and conducts business activities.

    The Group's segments are based on three product divisions, and its three reportable segments are the Industrial Tape segment, the Optronics segment and the Human Life segment. Each reportable segment is grouped into one operating segment based on similarities in products, markets, and other aspects.

    Operating segment

    Major products or business

    Industrial Tape

    Functional Base Products (bonding and joining products, protective materials,

    processing materials, automotive products, etc.)

    Optronics

    Information Fine Materials (optical films, etc.), Circuit Materials (CIS (Circuit Integrated

    Suspension), high-precision circuit, etc.)

    Human Life

    Life Science (oligonucleotide contract manufacturing business, nucleic acid synthesis materials, nucleic acid drug discovery, medical products, etc.), Membrane (high-polymer separation membrane), Personal Care Materials (functional film for hygienic materials,

    etc.)

    Others

    New Business, Other Products

    Intersegment revenue is based on prevailing market prices. Major products for each segment

  2. Information regarding revenue, profit or loss by segments

Segment information regarding the Group's reportable segments is as follows.

For the six months ended September 30, 2025

Reportable segments

Industrial Optronics Human Life Total Tape

(Millions of yen)

Figures in Others Total Adjustment consolidated

statement of

profit or loss

Revenue from external

178,188

268,191

66,519

512,898

8

512,907

662

513,569

customers

Intersegment revenue

1,001

1,668

3,100

5,770

-

5,770

(5,770)

-

Total segment revenue

179,189

269,859

69,619

518,669

8

518,677

(5,107)

513,569

Operating profit (loss)

23,683

77,086

(1,598)

99,171

(3,490)

95,681

(1,176)

94,504

Finance income

1,583

Finance expenses Share of profit of

investments accounted for

(994)

74

using the equity method

Profit before income taxes

95,167

(Note) 1. Others is an operating segment that is not included in the reportable segments and consists of New Business.

2. Adjustment of operating profit (loss) amounted to (1,176) million yen includes other incomes (losses) not allocated to each operating segment.

For the six months ended September 30, 2026

Reportable segments

Industrial Optronics Human Life Total Tape

(Millions of yen)

Figures in Others Total Adjustment consolidated

statement of

profit or loss

Revenue from external

207,309

269,258

81,097

557,666

4

557,670

693

558,363

customers

Intersegment revenue

802

1,457

3,173

5,433

13

5,447

(5,447)

-

Total segment revenue

208,112

270,715

84,271

563,099

18

563,117

(4,753)

558,363

Operating profit (loss)

35,832

73,950

1,020

110,803

(4,102)

106,700

(859)

105,841

Finance income

2,107

Finance expenses Share of profit of

investments accounted for

using the equity method

(1,518)

-

Profit before income taxes

106,430

(Note) 1. Others is an operating segment that is not included in the reportable segments and consists of New Business.

2. Adjustment of operating profit (loss) amounted to (859) million yen includes other incomes (losses) not allocated to each operating segment.

(Notes on dividends)

For the six months ended September 30, 2025

  1. Dividend payments

    Resolution

    Type of shares

    Cash dividends (Millions of yen)

    Dividends per share (Yen)

    Record date

    Effective date

    Source of dividends

    June 20, 2025

    Ordinary General Meeting of Shareholders

    Common stock

    19,458

    28

    March 31, 2025

    June 23, 2025

    Retained earnings

  2. Of the dividends for which the record date falls during the first half of the current fiscal year, items for which the effective date is after the end of the first half of the current fiscal year

Resolution

Type of shares

Cash dividends (Millions of yen)

Dividends per share (Yen)

Record date

Effective date

Source of dividends

October 27, 2025 Board of Directors

Meeting

Common stock

20,209

30

September 30,

2025

November 28,

2025

Retained earnings

For the six months ended September 30, 2026

  1. Dividend payments

    Resolution

    Type of shares

    Cash dividends (Millions of yen)

    Dividends per share (Yen)

    Record date

    Effective date

    Source of dividends

    June 19, 2026

    Ordinary General Meeting of Shareholders

    Common stock

    20,209

    30

    March 31, 2026

    June 22, 2026

    Retained earnings

  2. Of the dividends for which the record date falls during the first half of the current fiscal year, items for which the effective date is after the end of the first half of the current fiscal year

Resolution

Type of shares

Cash dividends (Millions of yen)

Dividends per share (Yen)

Record date

Effective date

Source of dividends

October 27, 2026 Board of Directors

Meeting

Common stock

23,694

36

September 30,

2026

November 27,

2026

Retained earnings

(Equity and other equity items) (Repurchase of treasury shares)

Pursuant to the resolution at the Board of Directors meeting on March 30, 2026, the Company has acquired its treasury shares.

According to this repurchase, treasury shares increased by 15,502 thousand and 50,183 million yen in the first half of the fiscal year ending March 31, 2027.

(Disposal of treasury shares)

Pursuant to the resolution at the Board of Directors meeting on June 19, 2026, the Company has disposed of its treasury shares as performance-linked share-based remuneration on July 9, 2026. According to this disposal, treasury shares decreased by 22 thousand and 66 million yen in the first half of the fiscal year ending March 31, 2027.

(Revenue)

As described in (Segment information), the Group has three reportable segments which are the Industrial Tape segment, the Optronics segment and the Human Life segment. The relationship between the disaggregated revenues and the revenues from external customers in each reportable segment is as follows.

For the six months ended September 30, 2025

(Millions of yen)

Segment name

Major products or business

Japan

Americas

Europe

Asia/ Oceania

Total

Industrial Tape

Functional Base Products

51,937

16,330

19,026

90,893

178,188

Information Fine Materials

7,542

-

-

191,812

199,354

Optronics

Circuit Materials

20,490

-

-

48,346

68,836

Total

28,033

-

-

240,158

268,191

Life Science

2,175

20,507

-

0

22,683

Membrane

Human Life

Personal Care Materials

1,472

-

7,254

1,967

2,551

25,621

4,715

251

15,994

27,841

Total

3,648

29,730

28,173

4,967

66,519

Others

New Business, Other Products

-

8

-

-

8

Adjustment

662

-

-

-

662

Total

84,281

46,068

47,199

336,019

513,569

Revenue by region is based on the location of each base, and the main countries and regions included in the classification other than Japan are as follows.

Americas: United States, Mexico, Brazil

Europe: Belgium, France, Germany, Sweden, Turkey

Asia/Oceania: China, Korea, Taiwan, Singapore, Malaysia, Hong Kong, Thailand, Vietnam

For the six months ended September 30, 2026

(Millions of yen)

Segment name

Major products or business

Japan

Americas

Europe

Asia/ Oceania

Total

Industrial Tape

Functional Base Products

58,644

19,391

20,802

108,471

207,309

Information Fine Materials

7,106

-

-

166,024

173,130

Optronics

Circuit Materials

27,305

-

-

68,822

96,128

Total

34,411

-

-

234,846

269,258

Life Science

1,909

28,706

5

-

30,621

Membrane

Human Life

Personal Care Materials

1,898

-

8,363

1,430

2,230

31,199

4,997

356

17,489

32,986

Total

3,808

38,501

33,435

5,353

81,097

Others

New Business, Other Products

-

4

-

-

4

Adjustment

693

-

-

-

693

Total

97,557

57,896

54,237

348,671

558,363

Revenue by region is based on the location of each base, and the main countries and regions included in the classification other than Japan are as follows.

Americas: United States, Mexico, Brazil

Europe: Belgium, France, Germany, Sweden, Turkey

Asia/Oceania: China, Korea, Taiwan, Singapore, Malaysia, Hong Kong, Thailand, Vietnam

(Per share information)

Basic earnings per share, diluted earnings per share and basis for calculations are as follows.

For the six months ended September 30, 2025

For the six months ended September 30, 2026

  1. Basic earnings per share 101.32 yen 115.32 yen Basis for calculation

    Net profit attributable to owners

    of the parent company (Millions of yen)

    Average number of common shares (Thousands of shares)

    68,926 76,502

    680,298 663,371

  2. Diluted earnings per share 101.28 yen 115.27 yen Basis for calculation

    Increase in the number of

    common stock upon exercise of

    the stock options

    250 246

    (Thousands of shares)

    Increase in the number of

    common stock upon

    Performance-linked share-based

    24

    14

    remuneration plan

    (Thousands of shares)

    Increase in the number of

    common stock upon

    Performance-linked restricted

    -

    19

    share remuneration plan

    (Thousands of shares)

    (Significant subsequent events) (Share Repurchase)

    The Company resolved at a meeting of its Board of Directors on October 27, 2026 the repurchase of its own shares pursuant to Article 156 of the Companies Act of Japan as applied pursuant to Article 165, Paragraph 3.

    1. Purpose of the Share Repurchase

      Under the financial strategy and capital policy set forth in its medium-term management plan, "Nitto RISE 2028," the Company has been promoting growth investments while working to improve capital efficiency through the optimization of its liquidity and shareholders' equity.

      In addition to this policy, after considering the Company's financial position, share price levels and other relevant factors, the Company has decided to repurchase its own shares, with the aim of enhancing shareholder returns and improving ROE.

    2. Details of the Share Repurchase

① Class of shares to be repurchased: Common stock

② Total number of repurchasable shares: 17,000,000 shares (maximum) (2.58% of the total number of issued shares [excluding treasury stock])

③ Total repurchase amount: 50 billion yen (maximum)

④ Repurchase period: From November 4, 2026 to March 24, 2027

⑤ Method of repurchase: Market purchase at Tokyo Stock Exchange

Nitto Denko Corp. on 6ix

Story so far

Earlier from Nitto Denko

All Nitto Denko news releases