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Explanatory Materials for Financial Results (For the 2nd Quarter (Interim) of Fiscal Year Ending March 31, 2026) November 11, 2025 Note: This document has been translated from 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.
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Table of Contents 2 1. Domestic Cement Demand / Our Sales Volume 2. FY2025 2nd Quarter (Interim) Financial Summary 3. FY2025 Full-year Earnings Forecast 4. Supplementary Materials
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Our domestic sales volume 3 Our export volume Domestic cement demand 777.2 719.6 695.1 392.0 356.6 343.3 385.1 363.0 351.8 FY2023 FY2024 FY2025 Forecast 1st half 2nd half (Unit: 10,000 t) 94.2 126.8 137.6 47.7 64.1 64.6 46.5 62.6 73.0 FY2023 FY2024 FY2025 Forecast 1st half 2nd half (Unit: 10,000 t) 1,870 1,860 1,739 1,634 1,535 1,919 1,868 1,719 1,631 1,565 3,788 3,728 3,458 3,266 3,100 0 1,000 2,000 3,000 4,000 FY2021 FY2022 FY2023 FY2024 FY2025 Forecast 1st half 2nd half (Unit: 10,000 t) 1. Domestic Cement Demand / Our Sales Volume
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4 FY2024 1st Half FY2025 1st Half YoY Change Difference from Initial Forecast (May 13) Net sales 1,086 1,058 -28 -56 Operating profit (Cement business only) 22.8 (-16.7) 41.2 (0.4) 18.4 (17.0) -6.8 (-8.6) Non-operating income/expenses, net -1.6 1.1 2.7 9.1 Ordinary profit 21.2 42.3 21.1 2.3 Extraordinary income/losses, net -2.2 36.0 38.2 24.0 Profit attributable to owners of the parent 9.4 55.9 46.5 5.9 YoY Comparison ① Net sales • Revenue fell due to lower domestic sales volume of cement. ② Operating profit • The Cement business saw an increase in operating profit due to the decline of coal prices and the impact of price hikes. • The Advanced Materials business saw an increase in operating profit owing to the ESC lineup etc. ③ Extraordinary income/losses, net • Increased due to the recording of a gain on sale of cross-shareholdings. • The Cement business saw improvements in profits and returned to profitability owing to the decline of coal prices and the impact of price hikes. • The Advanced Materials business saw a higher operating profit year-on-year owing to the ESC lineup etc. • Compared to the initial forecast, revenue fell due to a lower domestic sales volume in the Cement business, and the operating profit target was unachieved due to higher manufacturing fixed costs and the delayed impact of price hikes. Profit attributable to owners of the parent exceeded the initial forecast figure due to the recording of extraordinary income and a gain on sale of cross-shareholdings. Unit: 100 million yen 2. FY2025 2nd Quarter (Interim) Financial Summary
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FY2024 1st Half FY2025 1st Half YoY Change Difference from Initial Forecast (announced at May 13, 2025) Net sales Operating profit Net sales Operating profit Net sales Operating profit Net sales Operating profit Cement 776 -16.7 752 0.4 -24 17.0 -22 -8.6 Mineral Resources 88 16.2 86 14.8 -1 -1.5 -4 1.8 Cement-Related Products 119 7.8 106 4.3 -13 -3.5 -14 -2.7 Optoelectronics 11 -2.5 13 -0.7 1 1.8 -1 0.3 Advanced Materials 73 9.8 83 14.3 10 4.4 -14 1.3 Other 19 7.5 18 7.4 -1 -0.1 -1 0.4 Total 1,086 22.8 1,058 41.2 -28 18.4 -56 -6.8 5 Unit: 100 million yen Sales and Income by Segment (Year-on-year) 2. FY2025 2nd Quarter (Interim)
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6 -17 -7 15 23 -9 7 4 -16 0 -30 -25 -20 -15 -10 -5 0 5 10 15 20 Others: -16 Manufacturing fixed cost (repair costs, amortization expenses, etc.): -14 Transportation costs: -8, etc. 2. FY2025 2nd Quarter (Interim) Breakdown of Changes in Operating Income from Cement Business (Year-on-year) Unit: 100 million yen Sensitivity • Coal: 1$/t falling → 130 million yen/year improving • Oil: 1$/bbl falling → 60 million yen/year improving • Exchange rates: ¥1/$ rising → 120 million yen/year improving
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7 FY2024 1st Half FY2025 1st Half YoY Change Mineral Resources Lower revenue and income Net sales 88 86 -1 • Lower revenue due to a lower sales volume of limestone for overseas and domestic steel markets; lower income due to increased mining costsOperating profit 16.2 14.8 -1.5 Cement-Related Products Lower revenue and income Net sales 119 106 -13 • Lower revenue and income due to decreases in sales volume of concrete structure repair/reinforcement materials and in the number of repair worksOperating profit 7.8 4.3 -3.5 Optoelectronics Lower deficit Net sales 11 13 1 • Higher revenue due to an increase in the sales volume of optoelectronic devices • Lowered deficit due to cost reductionOperating profit -2.5 -0.7 1.8 Advanced Materials Higher revenue and income Net sales 73 83 10 • Higher revenue and income due to the ESC lineup etc. Operating profit 9.8 14.3 4.4 Earnings of Non-cement Business Segments 2. FY2025 2nd Quarter (Interim) Unit: 100 million yen
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8 • Expect higher revenue and income, driven by factors including the impact of domestic selling price hikes and a decline of coal prices in the Cement business ① Net sales Revenue is expected to increase due to price hikes of cement and the impact of advanced materials/ESC lineups. ② Operating profit Income of the Cement business is expected to increase due to the impact of cement’s price hikes and a decline of coal prices. ③ Non-operating income/exp., net Expected to deteriorate due to a decline of dividend income and an increase of interest expenses. ④ Extraordinary income/losses, net Expected to deteriorate, factoring in the impact of preparations to suspend Ako power plant, despite proceeding with the sale of cross-shareholdings. ⑤ Dividend per share Unchanged. *FY2025 Forecast Exchange rate: ¥148/$ (FY24 Average: ¥152/$) Coal (CIF): $138/t (FY24: $155/t) FY2024 Results FY2025 Forecast Change Net sales 2,195 2,252 57 Operating profit (Cement business only) 93.5 (8.8) 140.0 (50.0) 46.5 (41.2) Non-operating income/expenses, net 0.2 -4.0 -4.2 Ordinary profit 93.7 136.0 42.3 Extraordinary income/losses, net 34.1 -5.0 -39.1 Profit attributable to owners of the parent 90.1 100.0 9.9 Dividend per share 120 yen 120 yen – 3. FY2025 Full-Year Earnings Forecast (Year-on-year) Unit: 100 million yen, unless otherwise noted
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FY2024 Results FY2025 Forecast Change Net sales Operating profit Net sales Operating profit Net sales Operating profit Cement 1,564 8.8 1,577 50.0 13 41.2 Mineral Resources 174 31.5 179 30.0 5 -1.5 Cement-Related Products 236 18.4 254 16.0 18 -2.4 Optoelectronics 25 -3.6 29 -1.0 4 2.6 Advanced Materials 157 22.6 175 30.0 18 7.4 Other 39 16.2 38 14.0 -1 -2.2 Total 2,195 93.5 2,252 140.0 57 46.5 9 3. FY2025 Full-Year Earnings Forecast: Sales and Income by Segment (Year-on-year) Unit: 100 million yen
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10 9 -11 61 31 -17 12 5 -40 50 -20 0 20 40 60 80 100 Others: -40 Manufacturing fixed cost (amortization expenses, repair costs, etc.): -25 Transportation costs: -15, etc. Breakdown of Changes in Operating Income from Cement Business (Year-on-year) 3. FY2025 Full-Year Earnings Forecast Unit: 100 million yen Sensitivity • Coal: 1$/t falling → 130 million yen/year improving • Oil: 1$/bbl falling → 60 million yen/year improving • Exchange rates: ¥1/$ rising → 120 million yen/year improving
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11 • Full-year forecast for net sales and income is revised as we expect lower domestic sales volume of cement, a delayed impact of price hikes, and an increase in manufacturing fixed costs in the Cement business. Initial Forecast (published on May 13, 2025) Revised Forecast (published on Nov. 11, 2025) Change Net sales 2,350 2,252 -98 Operating profit (Cement business only) 190.0 (100.0) 140.0 (50.0) -50.0 (-50.0) Non-operating income/expenses, net -14.0 -4.0 10.0 Ordinary profit 176.0 136.0 -40.0 Extraordinary income/losses, net 7.0 -5.0 -12.0 Profit attributable to owners of the parent 140.0 100.0 -40.0 Dividend per share 120 yen 120 yen – Unit: 100 million yen, unless otherwise noted 3. FY2025 Full-Year Earnings Forecast (From the Initial Forecast) ① Net sales Revenue is expected to fall due to lower domestic sales volume of cement and lower sales volume of ESCs in the Advanced materials business. ② Operating profit Expected to deteriorate due to lower domestic sales volume of cement, a delayed impact of price hikes, and an increase in manufacturing fixed costs. ③ Non-operating income/exp., net Expected to improve due to improved foreign exchange gains/losses and a lower interest expenses. ④ Extraordinary income/losses, net Expected to deteriorate, factoring in the impact of preparations to suspend Ako power plant. ⑤ Dividend per share Unchanged.
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FY2025 Initial Forecast (published on May 13, 2025) FY2025 Revised Forecast (published on Nov 11, 2025) Change Net sales Operating profit Net sales Operating profit Net sales Operating profit Cement 1,639 100.0 1,577 50.0 -62 -50.0 Mineral Resources 183 28.0 179 30.0 -4 2.0 Cement-Related Products 255 16.0 254 16.0 -1 0.0 Optoelectronics 32 -1.0 29 -1.0 -3 0.0 Advanced Materials 202 33.0 175 30.0 -27 -3.0 Other 39 14.0 38 14.0 -1 0.0 Total 2,350 190.0 2,252 140.0 -98 -50.0 12 Unit: 100 million yen 3. FY2025 Full-Year Earnings Forecast (By Segment, from the Initial Forecast)
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13 100 -8 -20 2 2 -2 -3 -21 50 0 20 40 60 80 100 120 Others: -21 Manufacturing fixed cost (repair costs, amortization expenses, etc.): -13 Transportation costs: -3, etc. Unit: 100 million yen Breakdown of Changes in Operating Income from Cement Business (From the Initial Forecast) 3. FY2025 Full-Year Earnings Forecast
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14 1. Domestic Cement Demand / Our Sales Volume 2. FY2025 2nd Quarter (Interim) Financial Summary 3. FY2025 Full-year Earnings Forecast 4. Supplementary Materials
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FY2024 1st Half Results FY2025 1st Half Results YoY Change 1st quarter (Apr.–Jun.) 2nd quarter (Jul.–Sep.) 1st half 1st quarter (Apr.–Jun.) 2nd quarter (Jul.–Sep.) 1st half 1st quarter (Apr.–Jun.) 2nd quarter (Jul.–Sep.) 1st half Net sales Cement 385 391 776 366 386 752 -18 -6 -24 Mineral Resources 43 45 88 41 45 86 -2 1 -1 Cement-Related Products 54 64 119 47 59 106 -8 -5 -13 Optoelectronics 6 5 11 7 6 13 0 1 1 Advanced Materials 34 39 73 46 38 83 11 -1 10 Other 9 10 19 9 9 18 -0 -1 -1 Total 532 554 1,086 515 542 1,058 -17 -12 -28 15 Operating profit Cement -3.7 -12.9 -16.7 -0.7 1.1 0.4 3.0 14.0 17.0 Mineral Resources 8.4 7.8 16.2 5.5 9.3 14.8 -2.9 1.4 -1.5 Cement-Related Products 2.0 5.9 7.8 -0.6 4.9 4.3 -2.6 -1.0 -3.5 Optoelectronics -1.5 -1.0 -2.5 -0.1 -0.5 -0.7 1.4 0.5 1.8 Advanced Materials 3.8 6.0 9.8 9.1 5.2 14.3 5.2 -0.8 4.4 Other 4.1 3.3 7.5 4.0 3.4 7.4 -0.1 0.1 -0.1 Total 12.6 10.2 22.8 17.4 23.8 41.2 4.8 13.6 18.4 Unit: 100 million yen Sales and Income by Segment 4. FY2025 2nd Quarter (Interim)
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*FY2025 forecast 16 FY2024 FY2025 Change 1st half results 2nd half results Full-year results 1st half results 2nd half forecast Full-year forecast 1st half 2nd half Full year Net sales 1,086 1,109 2,195 1,058 1,194 2,252 -28 86 57 Operating profit (Cement business only) 22.8 (-16.7) 70.7 (25.4) 93.5 (8.8) 41.2 (0.4) 98.8 (49.6) 140.0 (50.0) 18.4 (17.0) 28.1 (24.2) 46.5 (41.2) Non-operating income/expenses, net -1.6 1.7 0.2 1.1 -5.1 -4.0 2.7 -6.9 -4.2 Ordinary profit 21.2 72.4 93.7 42.3 93.7 136.0 21.1 21.2 42.3 Extraordinary income/losses, net -2.2 36.2 34.1 36.0 -41.0 -5.0 38.2 -77.3 -39.1 Profit attributable to owners of the parent 9.4 80.7 90.1 55.9 44.1 100.0 46.5 -36.6 9.9 Dividend per share 60 yen 60 yen 120 yen 60 yen 60 yen 120 yen – – – Unit: 100 million yen, unless otherwise noted 4. FY2025 Earnings Forecast (Semiannual) Exchange rate: 1st half ¥146/$ 2nd half ¥150/$ Full year ¥148/$ (FY24 average ¥152/$) Coal (CIF): 1st half $135/t 2nd half $140/t Full year $138/t (FY24 average $155/t)
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17 FY2024 FY2025 Change 1st half results 2nd half results Full-year results 1st half results 2nd half forecast Full-year forecast 1st half 2nd half Full year Net sales Cement 776 788 1,564 752 825 1,577 -24 37 13 Mineral Resources 88 86 174 86 93 179 -1 7 5 Cement-Related Products 119 117 236 106 148 254 -13 31 18 Optoelectronics 11 14 25 13 16 29 1 3 4 Advanced Materials 73 83 157 83 92 175 10 8 18 Other 19 20 39 18 20 38 -1 0 -1 Total 1,086 1,109 2,195 1,058 1,194 2,252 -28 86 57 Operating profit Cement -16.7 25.4 8.8 0.4 49.6 50.0 17.0 24.2 41.2 Mineral Resources 16.2 15.3 31.5 14.8 15.2 30.0 -1.5 -0.0 -1.5 Cement-Related Products 7.8 10.6 18.4 4.3 11.7 16.0 -3.5 1.1 -2.4 Optoelectronics -2.5 -1.0 -3.6 -0.7 -0.3 -1.0 1.8 0.7 2.6 Advanced Materials 9.8 12.8 22.6 14.3 15.7 30.0 4.4 2.9 7.4 Other 7.5 8.7 16.2 7.4 6.6 14.0 -0.1 -2.1 -2.2 Total 22.8 70.7 93.5 41.2 98.8 140.0 18.4 28.1 46.5 Unit: 100 million yen Sales and Income by Segment (Semiannual) 4. FY2025 Earnings Forecast
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18 FY2024 → FY2025 1st half 2nd half Full year Sales and production volume -7 -4 -11 Sales prices 15 46 61 Coal and oil prices 23 8 31 Electricity and raw material prices -9 -8 -17 Recycling and rationalization 7 5 12 Exchange rates 4 1 5 Others -16 -24 -40 Cement operating profit change 17 24 41 Sensitivity Coal 1$/t falling 130 million yen/year improving Oil 1$/bbl falling 60 million yen/year improving Exchange rates ￥1/$ rising 120 million yen/year improving Unit: 100 million yen 4. FY2025 Breakdown of Changes in Operating Income from Cement Business (Semiannual)
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As of March 31, 2025 As of September 30, 2025 Change Cash and deposits 166 150 -16 Property, plant and equipment 1,918 1,962 45 Investment securities 394 410 17 Other assets 1,052 1,043 -11 Total assets 3,530 3,565 35 19 Interest-bearing liabilities 833 829 -5 Other liabilities 761 800 40 Total liabilities 1,594 1,629 35 Net assets 1,937 1,936 -0 Total liabilities and net assets 3,530 3,565 35 As of March 31, 2026 (Forecast) 145 1,957 425 1,075 3,602 900 770 1,670 1,932 3,602 Unit: 100 million yen Status of Assets and Liabilities 4. Supplementary Materials
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FY2024 1st Half FY2025 1st Half Change FY2025 Forecast Profit before income taxes 19 78 59 131 Depreciation (including amortization of goodwill) 107 112 5 233 Receivables, debt increase/decrease corporate tax, etc. -24 -35 -11 -50 Cash flow from operating activities 102 155 53 314 Purchase of non-current assets -131 -141 -10 -336 Proceeds from sales of assets etc. 1 47 46 61 Others 1 -0 -1 -36 Cash flow from investing activities -129 -94 35 -311 Free cash flow -27 61 88 3 Change in interest-bearing liabilities 68 -5 -73 67 Purchase of treasury shares -50 -50 0 -50 Dividends paid etc. -22 -21 1 -40 Cash flow from financing activities -4 -76 -72 -23 Net increase (decrease) in cash and cash equivalents -29 -16 14 -21 20 Unit: 100 million yen Status of Cash Flow 4. Supplementary Materials
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21 FY2021 FY2022 FY2023 FY2024 FY2025 Forecast Net sales 100 million yen 1,842 2,047 2,225 2,195 2,252 Operating profit 100 million yen 68.8 -85.6 72.5 93.5 140.0 Ordinary profit 100 million yen 98.3 -78.5 84.8 93.7 136.0 Profit attributable to owners of the parent 100 million yen 96.7 -57.2 153.4 90.1 100.0 Total assets 100 million yen 3,311 3,566 3,563 3,530 3,602 Interest-bearing liabilities 100 million yen 566 997 795 833 900 Net assets 100 million yen 2,032 1,846 1,968 1,937 1,932 Return on assets (ROA) % 3.0 -2.3 2.4 2.6 3.8 Return on equity (ROE) % 4.8 -3.0 8.1 4.7 5.2 Return on investment capital (ROIC) % 1.8 -2.1 1.8 2.4 3.4 Debt/equity (D/E) % 28 54 40 43 47 Free cash flow (FCF) 100 million yen 22 -360 284 31 3 Net asset ratio of cross- shareholdings % 26.4 22.6 19.6 16.9 16.9 Changes in Performance etc. 4. Supplementary Materials
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22 FY2021 FY2022 FY2023 FY2024 FY2025 Forecast Capital investment 100 million yen 207 297 294 308 342 Depreciation 100 million yen 194 202 217 226 233 R&D expenses 100 million yen 31 31 35 36 35 Financial balance 100 million yen 20 13 6 4 -2 Number of employees at the end of the period Persons 3,068 2,896 2,886 2,952 – Domestic demand for cement 10,000ｔ 3,788 3,728 3,458 3,266 3,100 Average exchange rate yen/US$ 112 135 144 152 148 Coal procurement price (CIF) US$/t (approximate) 150 280 210 155 138 Oil US$/bbl 75 96 82 79 65 Changes in Performance etc. 4. Supplementary Materials
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23 We have disclosed the Integrated Report 2025 on our website—the Japanese version on September 18 and the English version on October 28. This seventh edition of the report features a message from the President, along with the progress and achievements of our initiatives for sustainable growth and enhanced corporate value. This efforts are guided by the following two policies: (1) the Medium- to Long- term Vision, “SOC Vision 2035,” which we will promote as a Group; and (2) the “SOCN2050,” which outlines our roadmap toward carbon neutrality by 2050 and specific medium-term targets. We hope you will read this report to deepen your understanding of the Group’s management policies and initiatives. Japanese version soc_InR_2025.pdf English version soc_InR_2025e.pdf Disclosure of Integrated Report 2025
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Caution 24 About Forward-looking Statements • This document contains forward-looking statements that reflect Sumitomo Osaka Cement Co., Ltd.’s current views and judgements with respect to current plans, strategies and beliefs. They are based upon currently available information, and do not constitute promises, commitments or guarantees. • The forward-looking statements involve both real and potential risks and uncertainties that can cause actual events and results to differ materially from those anticipated in these statements.