Notice Regarding Differences Between Subsidiary’s Full-Year Standalone Performance and Previous Year’s Results

Overview of Performance

Nippon Steel Solutions Inc.’s full-year standalone performance for the fiscal year ending March 2026 saw net sales increase to 301,341 million yen (YoY +5.3%), while operating income slightly decreased to 28,803 million yen (YoY -1.2%). Ordinary income rose to 33,091 million yen (YoY +3.6%), but net income declined significantly to 24,838 million yen, down 66.5% from 74,118 million yen in the previous year. This decrease was primarily attributable to the absence of special gains recorded from the full sale of Recruit Holdings Co., Ltd. shares in the prior fiscal year.

Impact on Parent Company and Future Outlook

According to Nippon Steel Corporation, the differences in standalone performance of its subsidiary, Nippon Steel Solutions, have a minor impact on consolidated results. Although net income showed significant fluctuations due to the presence or absence of special gains, the increase in net sales and improvement in ordinary income are viewed positively. The company intends to continue monitoring subsidiary performance closely and disclose the impact on consolidated results appropriately.