Notice Regarding Revision of Earnings Guidance

Details of Earnings Guidance Revision

Chubu Steel Plate Co., Ltd. has downward revised its consolidated and non-consolidated earnings guidance for the fiscal year ending March 2026. Consolidated net sales are expected to be 51,600 million yen (2.3% decrease from previous forecast), operating income 1,000 million yen (56.5% decrease), ordinary income 1,100 million yen (57.7% decrease), and net income attributable to owners of parent 1,100 million yen (47.6% decrease). Non-consolidated earnings are similarly expected to decline.

Reasons for Revision and Future Policy

In the core steel-related business, while the sales volume of thick plates is as expected, the sales price recovery has been slower than anticipated, resulting in prices below projections. Furthermore, the main raw material, iron scrap, has experienced higher prices than expected, which is the primary cause of the earnings deterioration. Through a review of capital policies, the company plans to reduce consolidated shareholders’ equity to approximately 70 billion yen by the end of fiscal 2027, aiming to improve capital efficiency and corporate value. The year-end dividend forecast remains unchanged at 54 yen per share.