Japan Steel Works : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2025 (Based on Japanese GAAP)

DISCLAIMER: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

August 4, 2025

Summary of Consolidated Financial Results for the Three Months Ended June 30, 2025 (Under Japanese GAAP)

Company name: The Japan Steel Works, Ltd. Listing: Tokyo Stock Exchange

Securities code: 5631

URL: https://www.jsw.co.jp/

Representative: Toshio Matsuo, Representative Director & President Inquiries: Kenji Terada, General Manager, General Affairs Department Telephone: [phone]

Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)

   Note: Comprehensive income For the three months ended June 30, 2025:	¥4,240 million	[0.9%]
   For the three months ended June 30, 2024:	¥4,201 million	[41.1%]

   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      June 30, 2025	67,544	41.9	5,272	23.5	5,618	16.6	4,381	20.9
      June 30, 2024	47,602	(13.1)	4,268	54.9	4,817	36.9	3,623	47.7

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      June 30, 2025	59.53	-
      June 30, 2024	49.24	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio
   As of	Millions of yen	Millions of yen	%
   June 30, 2025	395,645	195,205	49.0
   March 31, 2025	398,122	195,101	48.5

   Reference: Equity

   As of June 30, 2025: ¥193,937 million

   As of March 31, 2025: ¥193,220 million

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended March 31, 2025	-	38.00	-	48.00	86.00
   Fiscal year ending March 31, 2026	-
   Fiscal year ending March 31, 2026 (Forecast)		44.00		44.00	88.00

   Note: Revisions to the forecast of cash dividends most recently announced: None

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent		Basic earnings per share
Fiscal year ending March 31, 2026	Millions of yen 290,000	% 16.7	Millions of yen 24,500	% 7.3	Millions of yen 24,500	% 4.3	Millions of yen 18,500	% 3.0	Yen 251.34

Note: Revisions to the earnings forecasts most recently announced: None

* Notes

1. Significant changes in the scope of consolidation during the period: None

2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None

3. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

4. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of June 30, 2025	74,408,985 shares
      As of March 31, 2025	74,408,985 shares

   2. Number of treasury shares at the end of the period

      As of June 30, 2025	804,926 shares
      As of March 31, 2025	804,900 shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2025	73,604,079 shares
Three months ended June 30, 2024	73,595,211 shares

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm:nothing

• Proper use of earnings forecasts, and other special matters

Forward-looking statements, such as earnings forecasts, contained in this material are forecasts judged by the Company based on information available at the time of publication, and are not intended to be a promise by the Company to realize them. Actual financial results, etc. may differ substantially due to various factors.

Quarterly consolidated balance sheet
			(Millions of yen)
	As of March 31, 2025		As of June 30, 2025
Assets
Current assets
Cash and deposits		75,899	90,354
Notes and accounts receivable - trade		60,398	42,081
Electronically recorded monetary claims - operating		7,729	7,882
Merchandise and finished goods		5,894	5,907
Work in process		113,654	112,796
Raw materials and supplies		10,980	10,904
Other		21,276	21,495
Allowance for doubtful accounts		(237)	(223)
Total current assets		295,595	291,198

Non-current assets

Property, plant and equipment

Buildings and structures, net	26,427	26,087
Machinery, equipment and vehicles, net	13,533	13,371
Other, net	15,661	16,194
Total property, plant and equipment	55,622	55,653
Intangible assets
Other	2,240	2,779
Total intangible assets	2,240	2,779
Investments and other assets
Investment securities	24,629	25,607
Other	20,348	20,718
Allowance for doubtful accounts	(313)	(313)
Total investments and other assets	44,664	46,012
Total non-current assets	102,527	104,446
Total assets	398,122	395,645

(Millions of yen)

	As of March 31, 2025		As of June 30, 2025
Liabilities
Current liabilities
Notes and accounts payable - trade		29,545		24,627
Electronically recorded obligations - operating		29,647		22,547
Short-term borrowings		12,473		12,200
Current portion of long-term borrowings		10,299		299
Income taxes payable		4,604		2,190
Contract liabilities		56,596		53,206
Provision for loss wind power generator business		486		486
Provision for business restructure		1,455		1,455
Other provisions		916		1,034
Other		21,611		22,481
Total current liabilities		167,637		140,528
Non-current liabilities
Long-term borrowings		19,440		44,366
Provisions		39		33
Retirement benefit liability		7,791		7,916
Asset retirement obligations		1,446		1,450
Other		6,664		6,145
Total non-current liabilities		35,383		59,911
Total liabilities		203,020		200,439
Net assets
Shareholders' equity
Share capital		19,837		19,837
Capital surplus		5,569		5,553
Retained earnings		154,059		154,908
Treasury shares		(2,317)		(2,317)
Total shareholders' equity		177,149		177,981
Accumulated other comprehensive income
Valuation difference on available-for-sale securities		7,845		8,861
Deferred gains or losses on hedges		7		(30)
Foreign currency translation adjustment		3,117		2,144
Remeasurements of defined benefit plans		5,101		4,980
Total accumulated other comprehensive income		16,071		15,956
Non-controlling interests		1,881		1,268
Total net assets		195,101		195,205
Total liabilities and net assets		398,122		395,645

Quarterly consolidated statement of income			(Millions of yen)
	Three months ended June 30, 2024		Three months ended June 30, 2025
Net sales		47,602	67,544
Cost of sales		34,835	52,268
Gross profit		12,766	15,275
Selling, general and administrative expenses		8,498	10,002
Operating profit		4,268	5,272
Non-operating income
Interest income		18	41
Dividend income		352	448
Foreign exchange gains		94	132
Gain on non-current assets rent		68	61
Share of profit of entities accounted for using equity method		1	11
Miscellaneous income		106	95
Total non-operating income		642	790
Non-operating expenses
Interest expenses		57	147
Commission expenses		1	221
Miscellaneous losses		33	76
Total non-operating expenses		93	445
Ordinary profit		4,817	5,618
Extraordinary income
Gain on sale of non-current assets		4	8
Gain on sale of investment securities		-	209
Total extraordinary income		4	217
Extraordinary losses
Loss on sale of non-current assets		94	-
Loss on retirement of non-current assets		41	96
Loss on inappropriate conduct in quality inspections		5	-
Total extraordinary losses		142	96
Profit before income taxes		4,679	5,739
Income taxes - current		2,179	2,239
Income taxes - deferred		(1,190)	(904)
Total income taxes		988	1,334
Profit		3,691	4,404
Profit attributable to non-controlling interests		67	23
Profit attributable to owners of parent		3,623	4,381