Third Quarter Financial Summary for the Fiscal Year Ending March 2026〔IFRS〕(Consolidated) (Completion of Interim Review by Audit Firm)

Summary of Results

For the cumulative third quarter period of the fiscal year ending March 2026, consolidated revenue was ¥7,256.323 billion, representing a 10.7% increase compared to the same period last year. Meanwhile, business profit declined by 37.1% YoY to ¥356.142 billion, operating income decreased by 81.1% YoY to ¥107.051 billion. Income before tax was ¥56.110 billion, down 89.8% YoY, and net income attributable to owners of the parent recorded a loss of ¥45.002 billion. The equity ratio attributable to owners of the parent decreased to 36.8%. These results were mainly due to the impact of the merger with the U.S. subsidiary United States Steel Corporation and recording business restructuring losses.

Business Combination and Future Outlook

On June 18, 2025, the company made United States Steel Corporation a wholly owned subsidiary, expanding its global crude steel production capacity to 82 million tons. This merger is a strategic investment aimed at addressing stable demand in the U.S. market and high-grade steel demand, as well as diversifying global business bases. The acquisition cost was approximately ¥2.0625 trillion, with goodwill provisionally recorded at about ¥396 billion. There is no change to the full-year earnings forecast for the fiscal year ending March 2026, which projects revenue of ¥10 trillion (up 15.0% YoY), business profit of ¥420 billion (down 38.5% YoY), and net loss attributable to owners of the parent of ¥70 billion. The dividend forecast remains unchanged at ¥12 per share at year-end.