Notice Regarding Differences Between Forecast and Actual Results for the Second Quarter (Interim) of the Fiscal Year Ending March 2027 and Revision of Full-Year Earnings Forecast

Revision of Earnings Forecast

This report discloses the differences between the actual results for the second quarter, covering the period from April 1, 2026 to September 30, 2026, and the previously announced second-quarter forecasts for the fiscal year ending March 2027 published on September 17, 2026. In the core steel-related business segment, net sales were generally as expected; however, due to valuation differences in raw materials and work-in-process inventories, both consolidated and non-consolidated results exceeded the previously announced forecasts, prompting revisions. Full-year forecasts for net sales and each profit metric have been revised: Operating income has been revised to 800 million yen, Ordinary income to 600 million yen, and Net Income Attributable to Owners of Parent to 300 million yen. There is no revision to the dividend forecast.

Impact on Shareholders and Future Outlook

The current revisions reflect that second-quarter actuals exceeded expectations and incorporate sheet steel selling price revisions and the effects of the cost environment. There is no clear mention of changes to capital allocation or financing plans, and the dividend forecast remains unchanged. As the second half may be affected by recognition of losses on disposal of fixed assets, continued monitoring is required.