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

Performance Overview

Consolidated performance for the fiscal year ending March 2026 shows net sales of ¥95,096 million (down 18.3% YoY), operating loss of ¥2,590 million, ordinary income of ¥3.3 million (down 99.3% YoY), and net loss attributable to owners of the parent of ¥20,960 million. The sharp decline is primarily attributed to a steep drop in demand in Indonesia and a special loss of ¥19,990 million recorded due to the suspension of PT KRAKATAU OSAKA STEEL (KOS).

Financial Position and Cash Flows

Total assets decreased by 24.4% from the previous year to ¥153,778 million, and net assets declined by 28.2% to ¥113,522 million. Cash flows from operating activities generated income of ¥8,821 million, cash flows from investing activities had an expenditure of ¥8,638 million, and cash flows from financing activities resulted in an expenditure of ¥24,328 million. The ending balance of cash and cash equivalents stands at ¥19,743 million.

Dividend Policy

Dividends for the fiscal year ending March 2026 have been suspended due to poor performance. The dividend forecast for the next fiscal year ending March 2027 is undecided. The target dividend payout ratio is approximately 30%, but dividends will not be paid this year.

Future Outlook

For the full fiscal year ending March 2027, consolidated forecasts include net sales of ¥95 billion, ordinary income of ¥2.5 billion, and net income attributable to owners of the parent of ¥1.3 billion. While the recovery in demand for construction steel will be limited, efforts will be made to secure appropriate margins considering rising costs and to enhance earnings through energy-saving and CO2-reduction electric arc furnace operations, aiming for sustainable growth.