Interim report
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. February 6, 2026 Consolidated Financial Results for the First Quarter Ended December 31,2025 (Japanese GAAP) Company Name Hosokawa Micron Corporation Stock Exchange Listing Tokyo Stock Exchange Stock Code 6277 URL https://www.hosokawamicron.co.jp President Kohei Hosokawa Contact Tetsuya Inoue, Executive Vice President Telephone +81-(0)72-855-2225 Scheduled date of dividend payment: - Preparation of supplementary material on financial results: None Financial results briefing session: None (Figures are rounded down to the nearest million yen) 1. Quarterly Consolidated Financial Results (October 1, 2025 - December 31, 2025) (1) Consolidated Results of Operation (Percentages represent year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Million yen % Million yen % Million yen % Million yen % 1st quarter ended Dec. 2025 18,506 2.1 726 (49.6) 1,025 (39.2) 150 (87.1) 1st quarter ended Dec. 2024 18,123 (10.5) 1,441 (8.3) 1,686 (7.7) 1,162 (3.5) (Reference) Comprehensive Income (million Yen) 1st quarter ended Dec.2025: 3,001｛(14.8)%｝ 1st quarter ended Dec.2024: 3,524｛934.0%｝ Earnings per share Diluted earnings per share Yen Yen 1st quarter ended Dec. 2025 10.25 10.24 1st quarter ended Dec. 2024 78.60 78.47 (2) Consolidated Financial Position Total assets Net assets Equity ratio Million yen Million yen % As of Dec. 31, 2025 104,487 69,366 66.4 As of Sept. 30, 2025 102,734 67,219 65.4 (Reference) Shareholders' Equity (million Yen) Dec. 2025: 69,347 Sep t. 2025: 67,174 2. Dividends Dividends per share 1st Quarter 2nd Quarter 3rd Quarter Year-end Annual Yen Yen Yen Yen Yen Year ended Sept. 2025 (actual) － 60.00 － 60.00 120.00 Year ended Sept. 2026 (actual) － Year ended Sept. 2026 (forecast) 65.00 － 65.00 130.00 Note: Revisions of the forecast dividends since the latest announcement: None
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3. Consolidated Forecasts for the Fiscal Year Ending September 30, 2026 (October 1, 2025 - September 30, 2026) (Percentages represent year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Earnings per share Million yen % Million yen % Million yen % Million yen % Yen 1st Half 38,500 0.1 3,000 (16.1) 3,200 (18.8) 2,400 (10.8) 163.98 Full Year 78,500 0.6 7,000 (0.7) 7,400 (4.1) 5,200 14.9 355.29 Note: Revisions of the Consolidated forecast since the latest announcement: None 4. Others (1) Significant changes in consolidated subsidiaries during the period: None (2) Adoption of simplified accounting treatment for quarterly closing: Yes (3) Changes in accounting treatment for quarterly consolidated financial statement 1) Changes in accounting policies due to the revision of accounting standards: None 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (4) Number of shares outstanding (common stock) 1) Number of shares outstanding at the end of the period (incl. treasury stock) As of December 31, 2025 15,730,538 shares As of September 30, 2025 15,730,538 shares 2) Number of treasury stock at the end of the period As of December 31, 2025 1,071,570 shares As of September 30, 2025 1,094,550 shares 3) Average number of shares in the fiscal year As of December 31, 2025 14,646,008 shares As of December 31, 2024 14,788,989 shares * Review of the Japanese -language original of the attached consolidated quarterly financial statement by certified public accountants or an audit firm: None * Explanation regarding appropriate use of earnings forecasts and other special notes Note : The forecasts above are based on currently available information at the time of announcement. Actual results may diff er from these forecasts for a number of factors. Please see "1.Qualitive Information on the Financial Results for the quarterly period, (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information "on page 3 for more information regarding the assumptions used and matters to be noted when relying on profit projections.
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―1― Contents of Attachments 1. Qualitive Information on the Financial Results for the quarterly period 2 (1) Overview of Operating Results 2 (2) Overview of Financial Positions 3 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information 3 2. Quarterly Consolidated Financial Statements and Major Notes 4 (1) Quarterly Consolidated Balance Sheets 4 (2) Quarterly Consolidated Statements of Income and Comprehensive Income 6 Quarterly Consolidated Statements of Income 6 Quarterly Consolidated Statements of Comprehensive Income 7 (3) Quarterly Consolidated Statements of Cash Flows 8 (4) Notes to Quarterly Consolidated Financial Statements 9 Matters related to the assumption of going concern 9 Significant change in the amount of shareholders' equity 9 Adoption of the special accounting methods on quarterly consolidated financial statements 9 Segment information and other 9
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―2― 1.Qualitive Information on the Financial Results for the quarterly period (1) Overview of Operating Results During the first quarter of the current fiscal year, the global economy maintained resilient growth. While ongoing adjustments to excess supply in China continued to weigh on the global economy, the impact of U.S. trade policies was smaller than initially feared. This was due to factors such as increased efforts by U.S. companies and their trading partners to absorb tariff costs, continued expan sion of AI- related investments in the U.S., and efforts by various countries to increase fiscal spending, all of which provided support to the economy. Against this economic backdrop, the operating results for the first quarter of the current fiscal year are as follows. (Millions of yen) First quarter 2025 First quarter 2026 Incremental amounts Year on Year (%) Orders received 20,191 21,337 1,145 5.7 Backlog of orders 48,596 49,039 443 0.9 Sales 18,123 18,506 382 2.1 Operating profit 1,441 726 (714) (49.6) Ordinary profit 1,686 1,025 (660) (39.2) Profit attributable to owners of parents 1,162 150 (1,012) (87.1) Orders received increased overall, driven by a recovery in orders from the United States in the Blown film business, despite a continuing trend of delayed decision -making, particularly for large projects in the powder -related business. Sales revenue also increas ed slightly, and the gross profit margin improved. However, operating profit decreased significantly due to an increase in selling, genera l, and administrative expenses, which included temporary expenditures such as costs for participating in international exhibitions. Furthermore, profit attributable to owners of the parent also decreased significantly due to the recording of an extraordinary loss in German subsidiary for business structure improvement expenses.. The segment's performance is as follows. (Powder related business) This business is the core field of the Hosokawa Micron Group, which manufactures and sells pulverizing and classifying equipm ent, mixing and drying equipment, air pollution control equipment for the Japanese market, dust collectors for product collection, precision air conditioning control equipment, and other products. It also develops and commercializes new materials, primarily composit e nanoparticles, and provides contract processing services for fine powders. While delays in closing deals were generally observed, particularly for large-scale projects, orders increased for the food market and the maintenance service division remained solid. However, orders declined for the chemical market and electronic materials sector , which had received large orders in the same period last year. Although inquiries remained strong, they did not translate into orders, resulting in a decrease in orders received. On the other hand, shipments progressed steadily, leading to increased revenue and profit. As the result of this, orders received are ¥ 14,555 million (11.3% decrease versus the pervious same period), backlog of orders is ¥ 35,477 million (7.1% decrease versus the pervious same period), and net sales are ¥ 14,868 million (7.5% increase versus th e previous same period). Profit for the segment is ¥1,508 million (6.1% increase versus the previous same period).
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―3― (Blown film-related business) This business develops, manufactures, and sells equipment for producing various high -performance blown films, ranging from single - layer to multi-layer types. Although the U.S. market had shown signs of stagnation, recovery trends emerged, with orders received ranging from single-layer lines for garbage bags to multiple lines of 3 -to 5-layers multi-layer equipment. Orders for Europe, another key market, and Asia, a focus market, remained sluggish, yet orders received for the first quarter reached a high level across the entire business. However, sales revenue decreased due to fewer projects than initially planned. Ad ditionally, temporary expenses incurred for exhibiting at a major global trade show held every three years contributed to an operating loss. As the result of this, orders received are ¥ 6,781 million (79.2% increase versus the previous same period), backlog of orders is ¥13,562 million (30.1% increase versus the previous same period), and net sales are ¥3,637 million (15.1% decrease versus the previous same period). Loss for the segment is ¥384 million (Segment profit for the previous same period was ¥378 million .) (2) Overview of Financial Positions Total assets at December 31, 2025, amounted to ¥104,487 million, an increase of ¥1,752 million compared to the fiscal year en ded September 30, 2025. This was primarily attributable to increases in property, plant and equipment. Total liabilities were ¥ 35,121 million, a decrease of ¥393 million compared to the fiscal year ended September 30, 2025. This was primarily attributable to decreases in income taxes payable and provision for bonuses. Net assets were ¥69,366 million, an increase of ¥2,146 million compared to the fiscal year ended September 30, 2025. This was primarily attributable to increases in foreign currency translation adjustment. (Cash Flow) The balance of cash and cash equivalents decreased ¥1,517 million from the fiscal year ended September 30, 2025 to a total of ¥29,567 million. A summary of each cash flow and major factor are as follows. (Operating Cash Flow) Operating cash flow was ¥911 million, a decrease of ¥2,466 million versus the previous same period. This was mainly due to payments of income taxes. (Investing Cash Flow) Net investing activities used ¥1,031 million in cash, a decrease of ¥155 million versus the previous same period, primarily due to purchase of property, plant, and equipment. (Financing Cash Flow) Net financing activities used ¥915 million in cash, a n increase of ¥337 million versus the previous same period mainly due to payment in dividends to shareholders. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information Consolidated financial results forecast for the interim period and this fiscal year ending September 30, 2026 are unchanged f rom the consolidated financial forecasts announced on November 7, 2025.
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―4― 2. Quarterly Consolidated Financial Statements and Major Notes (1) Quarterly Consolidated Balance Sheets (Millions of Yen) As of September 30, 2025 As of December 31, 2025 Assets Current Assets Cash and deposits 31,942 30,498 Notes and accounts receivable-trade, and contract assets 18,610 18,211 Electronically recorded monetary claims - operating 898 797 Finished goods 4,082 4,055 Work in process 4,867 5,943 Raw materials and supplies 4,221 4,508 Other 2,884 3,349 Allowance for doubtful accounts (492) (525) Total Current Assets 67,013 66,839 Non-Current Assets Property, plant and equipment Buildings and structures 29,982 32,343 Machinery, equipment and vehicles 20,007 21,075 Land 7,357 7,541 Construction in progress 728 137 Other 4,421 4,705 Accumulated depreciation and impairment loss (31,410) (33,237) Total property, plant and equipment 31,087 32,566 Intangible assets Goodwill 113 112 Other 642 660 Total intangible assets 756 773 Investments and other assets Investment securities 2,947 3,236 Deferred tax assets 791 906 Other 138 163 Total investments and other assets 3,877 4,307 Total Non-Current Assets 35,721 37,647 Total Assets 102,734 104,487
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―5― (Millions of Yen) As of September 30, 2025 As of December 31, 2025 Liabilities Current Liabilities Notes and accounts payable-trade 7,168 6,878 Electronically recorded obligations - operating 1,206 1,114 Current portion of long-term loans payable 158 311 Accrued expenses 4,675 4,429 Income taxes payable 1,323 723 Contract liabilities 9,867 10,863 Provision for bonuses 731 213 Provision for directors’ bonuses 68 18 Provision for product warranties 922 1,008 Provision for share awards 32 10 Other 2,764 2,675 Total Current Liabilities 28,920 28,248 Non-Current Liabilities Long-term loans payable 1,127 966 Provision for share awards 16 15 Net defined benefit liability 3,215 3,311 Deferred tax liabilities 1,301 1,675 Other 933 904 Total Non-Current Liabilities 6,594 6,872 Total Liabilities 35,514 35,121 Net Assets Shareholders' Equity Capital stock 14,496 14,496 Capital surplus 3,205 3,181 Retained earnings 44,726 43,995 Treasury stock (3,773) (3,697) Total Shareholders' Equity 58,654 57,975 Accumulated other comprehensive income Valuation difference on available-for-sale securities 944 1,100 Deferred gains or losses on hedges 35 9 Foreign currency translation adjustment 7,802 10,520 Remeasurements of defined benefit plans (261) (258) Total accumulated other comprehensive income 8,520 11,372 Subscription rights to shares 44 18 Total Net Assets 67,219 69,366 Total Liabilities and Net Assets 102,734 104,487
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―6― (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income (Millions of Yen) Oct. 1, 2024 - Dec. 31, 2024 Oct. 1, 2025 - Dec. 31, 2025 Net sales 18,123 18,506 Cost of sales 11,941 12,141 Gross profit 6,182 6,364 Selling, general and administrative expenses 4,741 5,638 Operating profit 1,441 726 Non-operating income Interest income 141 124 Dividend income 39 62 Equity in earnings of affiliates 7 60 Foreign exchange gains 46 10 Gain on valuation of derivatives － 27 Other 22 26 Total non-operating Income 257 311 Non-operating expenses Interest expenses 4 6 Loss on valuation of derivatives 2 － Other 4 5 Total non-operating Expenses 12 12 Ordinary profit 1,686 1,025 Extraordinary income Gain on sales of non-current assets 1 0 Total extraordinary income 1 0 Extraordinary losses Loss on sales and retirement of non-current assets 0 1 Business structure improvement expenses － 485 Total extraordinary loss 0 486 Income before income taxes 1,687 540 Income taxes 524 389 Net income 1,162 150 Profit attributable to owners of parent 1,162 150
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―7― Quarterly Consolidated Statements of Comprehensive Income (Millions of Yen) Oct. 1, 2024 - Dec. 31, 2024 Oct. 1, 2025 - Dec. 31, 2025 Net income 1,162 150 Other comprehensive income Valuation difference on available-for-sale securities (36) 156 Deferred gains or losses on hedges (76) (26) Foreign currency translation adjustment 2,470 2,717 Remeasurements of defined benefit plans 4 3 Total other comprehensive income 2,362 2,851 Comprehensive income 3,524 3,001 Comprehensive income attributable to Comprehensive income attributable to owners of parent 3,524 3,001 Comprehensive income attributable to non- controlling interests － －
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―8― (3) Quarterly Consolidated Statements of Cash Flows (Millions of Yen) Oct. 1, 2024 - Dec. 31, 2024 Oct. 1, 2025 – Dec. 31, 2025 Cash flows from operating activities; Income before income taxes 1,687 540 Depreciation and amortization 555 638 Amortization of goodwill 6 6 Increase (decrease) in allowance for doubtful accounts (5) 6 Increase (decrease) in provision for bonuses (558) (518) Increase (decrease) in provision for directors' bonuses (58) (49) Increase (decrease) in provision for product warranties 118 35 Increase (decrease) in net defined benefit liability (33) 0 Increase (decrease) in provision for share awards (14) (22) Interest and dividends income (180) (186) Interest expenses 4 6 Equity in (earnings) losses of affiliates (7) (60) Loss (gain) on valuation of derivatives 2 (27) Loss (gain) on sales and retirement of non -current assets (0) 0 Decrease (increase) in notes and accounts receivable-trade 3,770 1,264 Decrease (increase) in inventories (66) (717) Increase (decrease) in notes and accounts payable-trade (2,342) (716) Increase(decrease) in contract liabilities 779 555 Decrease (increase) in advance payments- trade (213) (119) Increase (decrease) in accrued expenses (1,356) (657) Other (17) (72) Sub total 2,068 (94) Interests and dividends income received 180 186 Interest expenses paid (4) (6) Income taxes paid (689) (997) Net cash provided by (used in) operating activities 1,554 (911) Cash flows from investing activities; Payments into time deposits (118) (125) Proceeds from withdrawal of time deposits 169 66 Purchase of property, plant and equipment (899) (923) Purchase of intangible assets (29) (50) Other 1 1 Net cash provided by (used in) investing activities (875) (1,031) Cash flows from financing activities; Proceeds from long-term loans payable － 31 Repayment of long-term loans payable (191) (41) Cash dividends paid (1,038) (880) Repayment of lease liabilities (22) (24) Net cash provided by (used in) financing activities (1,253) (915) Effect of exchange rate change on cash and cash equivalents 1,314 1,340 Net increase (decrease) in cash and cash equivalents 740 (1,517) Cash and cash equivalents at beginning of period 26,995 31,084 Cash and cash equivalents at end of period 27,736 29,567
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―9― (4) Notes to Quarterly Consolidated Financial Statements (Matters related to the assumption of going concern) There is no applicable information. (Significant change in the amount of shareholders' equity) There is no applicable information. (Adoption of the special accounting methods on quarterly consolidated financial statements) The company, its domestic consolidated subsidiaries, and certain foreign consolidated subsidiaries calculate the tax expense by multiplying the reasonably estimated tax rate by the income before income taxes. However, the effective statutory tax rate is used when the reasonably estimated tax rate results in an unreasonable tax expense. (Segment information and other) Information about reported segment profit or loss (Oct. 1, 2024- Dec. 31, 2024) (Millions of yen) Reportable segment Adjustments (*1) Consolidated total (*2) Powder Blown Film Total Sales Outside customer 13,836 4,286 18,123 － 18,123 Intersegment 15 － 15 (15) － Total Sales 13,852 4,286 18,139 (15) 18,123 Segment profit (loss) 1,422 378 1,801 (360) 1,441 (*1) Adjustments to segment profit (loss) were ¥ (360) million and comprised mainly corporate expenses not allocated to repor table segments. (*2) Segment profit (loss) was adjusted to conform with operating profit. Information about reported segment profit or loss (Oct. 1, 2025- Dec. 31, 2025) (Millions of yen) Reportable segment Adjustments (*1) Consolidated total (*2) Powder Blown Film Total Sales Outside customer 14,868 3,637 18,506 － 18,506 Intersegment 21 － 21 (21) － Total Sales 14,890 3,637 18,528 (21) 18,506 Segment profit (loss) 1,508 (384) 1,124 (398) 726 (*1) Adjustments to segment profit (loss) were ¥ (398) million and comprised mainly corporate expenses not allocated to repor table segments. (*2) Segment profit (loss) was adjusted to conform with operating profit.