Financial Summary for the Third Quarter of the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Business Performance

During the nine months ended December 2025 of the fiscal year ending March 2026, downward pressure continued due to domestic inflation and stagnation in industrial production, along with the impact of U.S. tariff policies. Construction demand was sluggish, prices for materials and equipment soared, and delays in construction schedules due to labor shortages compounded costs. The domestic business prioritized securing appropriate margins and promoted cost improvement measures, but reduced shipment volumes and rising scrap prices worsened profitability. The Indonesian business saw a sharp decline in steel demand following government infrastructure budget cuts, leading to decreased sales volume and intensified competition, which deteriorated earnings. As a result, net sales amounted to ¥71,905 million (down 18.4% YoY), operating loss was ¥250 million, and net loss attributable to owners of the parent for the quarter was ¥21,165 million.

Dividends and Future Outlook

Regarding dividends, while the basic policy is to provide appropriate returns to shareholders based on performance, funds for medium- to long-term growth and strategic investments will be secured. A consolidated payout ratio target of 30% is set, and the year-end dividend per share for the fiscal year ending March 2026 is planned to be zero, considering the earnings forecast (previous year: ¥19). The full-year earnings forecast for fiscal 2026 projects net sales of ¥98.0 billion, ordinary income of ¥0, and a net loss attributable to owners of the parent of ¥800 million. The company has decided to withdraw from the Indonesian business; however, losses associated with the withdrawal have not yet been determined and are not reflected in the earnings forecast.