(Progress of Disclosure) Notice Regarding Land Expropriation and Factory Relocation of Australian Subsidiary Shinagawa Refractories Australasia’s Kwinana Plant

Overview of Land Expropriation and Compensation

Shinagawa Refractories Co., Ltd.’s Australian subsidiary, Shinagawa Refractories Australasia Pty Ltd (SRA), has entered into a contract with the Western Australia state government regarding the expropriation of the land of its Kwinana plant located in the Kwinana area of Western Australia. The compensation amount is AUD 35.7 million (approx. JPY 3,897 million), with a gain on sale of AUD 34.0 million (approx. JPY 3,712 million). Operations at the current plant can continue for about two and a half years after the land expropriation. The handover was completed on March 4, 2026.

Future Factory Relocation Plan and Earnings Impact

A new factory site has already been secured, and a land purchase agreement is scheduled for April 2026. The new factory will be constructed between 2026 and 2028, with operations expected to commence around September 2028. The current Kwinana plant is planned to close at the same time. The gain on sale of fixed assets related to the compensation, approximately JPY 3,712 million, is scheduled to be recorded as a special gain in the consolidated financial results for the first quarter of the fiscal year ending March 2027.