Supplementary Materials for the Third Quarter Financial Results for the Fiscal Year Ending March 2026

Overview of Operating Results

Consolidated net sales for the cumulative third quarter of the fiscal year ending March 2026 were JPY 36,809 million, a 13.9% decrease compared to the same period last year. This decline was due to a significant drop in selling prices caused by deterioration in steel market conditions and a temporary suspension of orders caused by an accident in the previous fiscal year. Operating income was JPY 735 million, down 79.9% YoY; ordinary income was JPY 972 million, down 72.5% YoY; and net income attributable to owners of the parent for the quarter was JPY 642 million, down 74.4% YoY. Sales volume fell 3.8% and unit selling prices decreased by 11.6%. By segment, steel-related operations experienced decreases in both sales and profits, while the rental business saw increases in both sales and profits.

Revision of Capital Policy and Dividend Forecast

Following a review of the capital policy to strengthen shareholder returns, the year-end dividend forecast was revised upward from JPY 51 to JPY 54, an increase of JPY 3. The annual dividend is expected to be JPY 104, representing a DOE of 3.7% (an increase of 0.2% compared to the previous forecast). The equity ratio declined by 2.8 points YoY to 86.2%, but the company targets reducing consolidated shareholders’ equity to approximately JPY 70 billion by the end of fiscal 2027.