Notice Regarding Recording of Cost of Sales (Reversal of Write-down on Inventory), Recognition of Non-operating Income (Equity-method Investment Gains), and Revision of Earnings Guidance

Details of the Revised Earnings Guidance

Revised the consolidated earnings guidance for the full fiscal year ending March 2026. Recorded a reversal of 2,275 million yen of write-downs on inventory in cost of sales, and recognized equity-method investment gains of 7,875 million yen as non-operating income. As a result of these factors, net sales were revised upward to 9,414 million yen (up 276 million yen from the previous forecast), operating loss improved to 4,971 million yen, ordinary income reached 3,323 million yen, and net income attributable to owners of parent was significantly revised upward to 2,610 million yen.

Background of the Revision and Future Outlook

Amid heightened global uncertainties such as the stagnation of China’s real estate market, U.S. tariff measures, the situation in Ukraine, and escalating tensions in the Middle East, the Company continues its policy of limiting production volumes of ferronickel products to reduce inventory levels and improve profitability. Although prices for nickel ore and raw fuel remain high, the reversal of inventory write-downs and increased equity-method investment gains have supported earnings. Following the medium- to long-term strategy 'PAMCOvision2031,' Taiheiyo Metal continues to respond under challenging conditions and has revised its earnings guidance.