December 2025 update

Flexibly responding to changes in the automotive industry, Nichidai is moving ahead with Forging DX and global restructuring.
Leveraging our technological strengths, all employees will work as one to achieve sustainable growth.

Earnings Report for the 2nd Quarter (Interim Period) of the Fiscal Year Ending March 31, 2026

The current fiscal year started amid significant changes in the environment surrounding the automotive industry. Uncertainty over the U.S. trade policy has driven inventory adjustments and production adjustments in the Japanese automotive industry, or our group’s major customer, leading to softening demand more than expected, particularly during the second quarter.

As a result, the interim results were net sales of 5,603 million yen (a decrease of 4.1% compared to the same period last year), operating loss of 238 million yen, ordinary loss of 215 million yen, and net loss attributable to owners of the parent for the interim period of 330 million yen.

As for the full-year earnings forecast, we announced a downward revision on October 31, projecting net sales of 11,252 million yen (a decrease of 3.0% compared to the same period last year), an operating loss of 200 million yen, and an ordinary loss of 180 million yen.

Results for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2026
[Differences Between Consolidated Earnings Forecast and Actual Results] (as of October 31, 2025)

(Millions of Yen)

Full-Year Forecast for Fiscal Year Ending March 2026
—Revision of Full-Year Forecast (as of October 31, 2025)

(Millions of Yen)

Full-Year Earnings Forecast

Taking these harsh results seriously, we have undertaken a fundamental review of our cost structure to turn positive in the second half of the fiscal year. Specifically, we are working to reduce fixed costs by appropriately managing overtime hours at production sites, raising efficiency of indirect operations, and other means. At the same time, with a focus on boosting production efficiency, we are accelerating transformation of our corporate structure so it can make up for the decline in sales, even slightly, through efforts in improving equipment utilization rates and process optimization.

Shifting toward high-value-added products is also among our key strategies. By devoting our sales resources intensively to increasing orders for high-margin products, we aim to improve our product mix. In the Filter business, in particular, product mix optimization is progressing toward enhanced profitability. The direction of U.S. trade policy is gradually becoming clearer, and the Japanese automotive industry is adapting to the new environment. With the progress of inventory adjustments, production has begun to resume.

Accurately assessing these environmental changes and quickly responding to the customers’ moves, our group strives to achieve profitability in the second half year. Although fully recovering our losses incurred in the first half year will be difficult, we will ensure that profitability is restored in the second half and pave the way to a full-fledged earnings recovery in the next fiscal year and beyond.

Steadily advancing growth initiatives based on the Medium-Term Management Strategy

Alongside near-term earnings improvement, we will steadily advance growth initiatives based on our Medium-Term Management Strategy “CHANGE ~ NICHINOVATION 2026 ~.”

Forging DX—Creating new value with next-generation technology

The “Forging DX,” for which we have reached a cooperation agreement with Toyota Motor Corporation, is a crucial project that will shape our company’s next generation. This initiative of digitizing our long-accumulated forging expertise using AI and sensing technology will innovate processes that previously relied on the intuition and experience of skilled workers. We will steadily proceed with the commercialization of this technology, which has earned high acclaim at academic conferences and is attracting attention from industry, government, and academia.

Global restructuring—Business expansion starting from Asia

Effective July 1, we absorbed and merged NICHIDAI (THAILAND) LTD. This strategic reorganization aims to apply our technological and sales capabilities, as well as expertise in quality management cultivated in the automotive business, to the global expansion of the Filter business. With Thailand as the starting point, we will step up sales expansion across the ASEAN region. Additionally, our efforts have shifted into high gear in the Indian market, where population growth and economic growth are continuing. Our Filter business is expanding beyond the automotive sector, finding new customers in industries requiring advanced filtration technology, such as food, pharmaceuticals, and aerospace.

Human capital—The greatest asset supporting changes

The driving force behind change is “people.” Through organizational restructuring, we are enhancing cross-departmental collaboration and fostering an environment conducive to innovation. By blending veteran employees’ skills with younger ones’ fresh ideas, we will develop next-generation leaders in manufacturing.

Dividends

Our group positions the return of profits to shareholders as a key management policy. While securing the necessary internal reserves for future business development and strengthening our management structure, we maintain a basic policy of continuing stable dividends. Based on this policy, the interim dividend is set at 2 yen per share, and combined with the year-end dividend of 4 yen, we plan to pay the annual dividend of 6 yen.

With the ongoing shift in the automotive industry structure, we will integrate our technological strengths cultivated over more than 70 years of history, or our core competence, with digital technology to expand our business on a global scale. Above all, we will value our corporate culture that motivates us to flexibly respond to changes and keep taking on new challenges. We sincerely ask our shareholders for their further support and encouragement.

Dividend per share

Sustainability initiatives toward sustainable growth

As the foundation that underpins these growth initiatives, we will ramp up sustainability initiatives within the framework of our Medium-Term Management Strategy and focus on creating environmental value with our technological capabilities as the core. Through this approach, we will enhance our corporate value while also contributing to society, thereby building long-term trust.

Creating environmental value with our technological capabilities as the core

Our group is promoting the Medium-Term Management Strategy “CHANGE ~ NICHINOVATION 2026 ~” under the management philosophy of “Creating new value and contributing to society.” With the final year of the strategy approaching, we have worked to build a more efficient and stable business foundation centered on three priority themes: CHANGE [1] Create Value for Customers with VSOP Spirit, CHANGE [2] Build a Company that Allows Employees to Shine, and CHANGE [3] Contribute to Building a Sustainable Society.

Underlying these initiatives is our unflagging pursuit of “products that no other company can create” and “unrivaled technological capabilities.” By harnessing technology as the driving force for growth while also enhancing corporate value and creating social value, we will fulfill our responsibility to shape a sustainable future.

In sustainability initiatives, we have identified 12 material issues considering the impact that our business activities exert on the environment and society. Specific measures for each issue, including “GHG emissions reduction,” “management of waste and hazardous substances,” “impact on product lifecycles,” and “human rights and community relations,” are underway.

In the environmental field, we have completed the visualization of greenhouse gas (GHG) emissions and began setting reduction targets and implementing effective measures. We are further tightening the management system of waste and hazardous substances while working to establish an environmental management system to acquire ISO 14001 certification. Through the introduction of solar power generation equipment and the replacement of existing equipment with energy-efficient models, we will reduce environmental impact and optimize operational efficiency.

Our group’s defining feature lies in technology-driven environmental value creation. In our Precision Dies business, the development of long-life dies has optimized resource utilization and improved production efficiency. In the Filter business, the “Filter Cycle Solution (FCS),” a business model that collects and recycles used products, has been implemented, simultaneously reducing environmental impact and costs. In the hydrogen-related field as well, our products have earned high trust for diverse applications such as fuel cells and generators, contributing to the realization of a decarbonized society.

Guideline formulation and community-based activities

We are also focusing on supply chain sustainability. We have formulated “Sustainability Guidelines” and developed a system to share the views on respect for human rights, fair trade practices, and environmental considerations with our business partners. By securing multiple suppliers for key components and insourcing some of the processes, we are dispersing supply risks and strengthening our stable supply system.

In terms of business continuity, our executive officers are working to establish systems to prepare for changes in the external environment, such as natural disasters and infrastructure failures, through regular checking of company-wide risks, refinement of countermeasures, and promotion of BCP development.

We also consider coexistence with local communities an important theme. Through community-based activities such as sponsoring local festivals and sports events, collaborating with educational institutions, holding baseball classes for local elementary and junior high schools, and making environmental conservation efforts, we have built trust with society. Going forward, through continuous improvement of our growth foundations in each aspect of environment, society, and people, we will contribute to realizing a sustainable future by creating both corporate value and social value as a company worthy of trust and choice of stakeholders.

Precision Dies Business

Overview of the 1st half year

Net sales decreased both domestically and internationally due partly to customer inventory adjustments, totaling 2,230 million yen (down 6.2% compared to the same period last year). In addition to reduced gross profit from lower sales, higher marketing investments and other factors resulted in an ordinary loss of 151 million yen.

Full-year forecast

Net sales are expected to see a partial recovery. While the environment remains challenging, we will continue to devote our sales resources intensively to increasing orders for high-value-added products, thereby improving our product mix and enhancing profitability.

* Rounded down to the nearest million yen

Precision Parts Business

Overview of the 1st half year

Net sales declined to 2,165 million yen (a decrease of 5.6% compared to the same period last year), as growth in overseas sales was not sufficient to offset weaker domestic sales. Additionally, due mainly to increased depreciation costs associated with strategic capital investments, ordinary loss amounted to 91 million yen.

Full-year forecast

Net sales are expected to remain at the same level. Focusing on further improvement in production efficiency, we will strive to reduce costs and boost profitability.

* Rounded down to the nearest million yen

Filter Business

Overview of the 1st half year

Net sales amounted to 1,206 million yen (an increase of 3.1% compared to the same period last year), driven by strong overseas sales, while domestic sales remained at the previous year’s level. On the other hand, ordinary income declined to 26 million yen (a decrease of 76.4% compared to the same period last year) due to changes in product mix and higher marketing investments.

Full-year forecast

We anticipate some fluctuations in demand affecting our net sales. By optimizing our product mix, we seek further improvements in profitability.

* Rounded down to the nearest million yen