Notice of Revision to Earnings Guidance

Overview of Revision to Earnings Guidance

Tokyo Steel Manufacturing Co., Ltd. has revised its standalone earnings guidance for the cumulative second-quarter period and the full fiscal year for the fiscal year ending March 2027. For the cumulative second quarter, net sales fell short of the previous forecast; however, scrap iron prices, the main raw material, were lower than assumed, and combined with higher product shipment unit prices, an improvement in operating income is anticipated. For the full year, net sales have been revised upward, and operating income, ordinary income and net income are expected to improve substantially. Going forward, the company will respond promptly to product supply-demand conditions and raw material trends and will thoroughly pursue cost reductions.

Outlook and Impact for Investors

The revisions, including the expectation of returning to profitability for the full year, depend on reductions in raw material costs and successful price pass-through to product prices. The company will continue to strengthen systems to flexibly respond to changes in domestic and international supply-demand conditions and raw material circumstances and will promote company-wide cost reductions. Investors should note that while short-term market trends may have an impact, the strengthened outlook for full-year profitability is a key point of interest.