Notice Regarding Differences Between Consolidated Earnings Guidance and Results for the Second Quarter (Interim) of the Fiscal Year Ending March 2027 and Revision of Full-Year Earnings Guidance

Summary of Revision to Earnings Guidance

This report discloses the differences between the consolidated earnings guidance and actual results for the second quarter (April 1, 2026 to September 30, 2026) and revises the full-year consolidated earnings guidance. The primary cause of the variance was a decline in operating income due to worsening profitability in the domestic consolidated subsidiary's steel business and the recording of inventory valuation losses. However, a weaker yen trend and strong performance at U.S. affiliated companies contributed to increases in ordinary income and net income attributable to owners of the parent. The revised full-year guidance is: net sales 180,000 hundred million yen, operating income 2,200 million yen, ordinary income 95,500 million yen, net income attributable to owners of parent 62,000 million yen, and net income per share 1,037.59 yen.

Outlook and Points to Note

The earnings guidance is based on reasonable assumptions at this time but contains inherent uncertainties. Recovery of profitability in the domestic steel business is expected to require time, and the figures may be revised again depending on future foreign exchange movements and the performance of affiliated companies.