Supplementary Materials for the Second Quarter of the Fiscal Year Ending March 2027

Key News Points

First-half results showed expanded profits due to higher metal prices and foreign exchange effects. The full-year forecast was revised upward to revenue of 2,450 hundred million yen, operating income of 165 billion yen, ordinary income of 220 billion yen, and net income attributable to owners of parent of 160 billion yen. Segment contributions included Materials, Smelting & Resource Recycling, and Cemented Carbide Products. Free cash flow is also expected to improve significantly. The dividend remains unchanged.

Outlook and Impact on Investors

To realize the medium-term management plan, the company will continue efforts to improve profit quality through price pass-through, raw material cost management, and improved inventory operations. Shareholder returns will be determined taking into account future investment plans and financial discipline. Capital expenditures such as investments and capacity increases at the Naoshima Smelter are expected to continue, but the significant increase in FCF will maintain financial soundness.