#ShinagawaRefractoriesCoLtd

Due to land expropriation of the Kwinana plant of the Australian subsidiary, compensation of approximately JPY 3,897 million is expected to be received. A special gain on sale of fixed assets of approximately JPY 3,712 million is scheduled to be recorded in the first quarter of FY ending March 2027.

The 28,405 m2 land of SRA Pty Ltd’s Kwinana plant in Australia has been expropriated by the Western Australian Government, with handover scheduled for March 2026. Compensation amount is under negotiation and the impact on earnings is currently unknown.