Financial Summary for Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Business Results

Consolidated net sales for the fiscal year ending March 2026 were JPY 160,389 million (YoY △4.7%), with operating income sharply declining to JPY 4,495 million (YoY △60.9%). Conversely, ordinary income increased substantially to JPY 65,235 million (YoY +19.9%), and net income attributable to owners of parent rose significantly to JPY 62,389 million (YoY +96.0%). The main drivers were robust demand in the U.S. operations, market price increases due to tariff enhancements, and increased earnings from equity-method affiliates. While the domestic steel business experienced lower sales and profits due to stagnant demand and rising costs, businesses in Thailand, Indonesia, the U.S., Vietnam, and South Korea are navigating challenging environments on a region-by-region basis.

Financial Position and Cash Flow Status

Total assets decreased by JPY 23,940 million from the previous fiscal year to JPY 633,540 million, liabilities decreased by JPY 2,418 million to JPY 52,122 million, and net assets decreased by JPY 21,522 million to JPY 581,417 million. Cash flows from operating activities increased by JPY 52,035 million, cash flows from investing activities decreased by JPY 40,875 million, and cash flows from financing activities decreased by JPY 57,776 million, resulting in a year-end cash and cash equivalents balance of JPY 75,458 million. Treasury stock acquisition and dividend payments represented the main outflows in financing activities.

Outlook

For the fiscal year ending March 2027, the company forecasts net sales of JPY 166,000 million (YoY +3.5%), operating income of JPY 4,500 million (YoY +0.1%), ordinary income of JPY 68,000 million (YoY +4.2%), and net income attributable to owners of parent of JPY 47,000 million (YoY △24.7%). Challenging business conditions are expected to continue in Japan and ASEAN countries; however, the U.S. operations are projected to increase profits supported by steady demand. The company intends to focus on price increases, promotion of high value-added products, and cost reductions. The dividend is planned at 400 yen per share annually.