Financial Summary for the Third Quarter of Fiscal Year Ending March 2026 [Japanese GAAP] (Unconsolidated)

Overview of Financial Performance

For the cumulative third quarter period of the fiscal year ending March 2026, net sales were JPY 37,308 million (8.8% decrease YoY), operating income was JPY 5,180 million (39.2% decrease YoY), ordinary income was JPY 5,694 million (28.4% decrease YoY), and quarterly net income was JPY 3,400 million (38.3% decrease YoY). In the titanium business, sales within Japan declined by 60.4% due to quality issues with Boeing, strikes, and inventory adjustments in the civil aviation supply chain, resulting in an overall 9.5% decrease in revenue. Conversely, exports increased by 8.6%. Although the high-performance materials segment saw a 4.0% sales decline amid semiconductor market adjustments, operating income increased by 28.3%.

Financial Position and Revision of Earnings Guidance

Total assets stood at JPY 107,972 million, an increase of JPY 7,047 million compared to the previous fiscal year-end, and net assets rose to JPY 45,134 million, up JPY 2,296 million. Liabilities increased by JPY 4,750 million to JPY 62,838 million. The full-year earnings forecast for the fiscal year ending March 2026 has been revised due to foreign exchange rate adjustments and inventory adjustments in the aircraft supply chain, with net sales forecast lowered to JPY 46,000 million (down JPY 3,000 million from the previous forecast) and operating income to JPY 4,800 million (down JPY 200 million). Ordinary income is expected to increase due to foreign exchange effects, and net income attributable to owners of parent remains unchanged from the previous forecast. The annual dividend is forecast at JPY 25.00, representing a dividend cut from JPY 50.00 the prior year.