© SHINAGAWA REFRA CO., LTD. Supplementary Materials for the Interim Financial Results for the Fiscal Year Ending March 2027

Performance Overview

For the interim period of the fiscal year ending March 2027, net sales were 94.1 hundred million yen, an increase of 15.0% year-on-year. EBITDA was 8.5 hundred million yen and operating income was 4.1 hundred million yen, with factors leading to a decline in profits. Sales increased in the Refractories, Insulation Materials, Advanced Equipment, and Engineering segments, but rising raw material and fuel costs and reduced profitability at Reframax weighed on overall profits. The overseas sales ratio increased to 46.2%.

Outlook and Challenges

The full-year outlook remains unchanged from previously disclosed figures, with expectations for price pass-through progress and resolution of equipment issues in the second half. While EBITDA is expected to be around prior-year levels, operating income and ordinary income are forecast to decline due to factors such as a reduction in foreign exchange gains. Performance is expected to improve depending on contributions from M&A and second-half project progress. The company will pursue strengthening overall profitability while containing pressure to reduce personnel and investment in each sector.