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Explanatory Materials for Financial Results (For the 1st Quarter of Fiscal Year Ending March 31, 2027) August 4, 2026 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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01 FY2026 1st Quarter Key Points of Financial Results Domestic Cement Demand / Our Sales Volume02 FY2026 1st Quarter Financial Summary03 FY2026 Earnings Forecast04 Table of Contents Supplementary Financial Materials05
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1. FY2026 1st Quarter Key Points of Financial Results 3 • The Cement business saw higher profit year on year mainly owing to the impact of domestic selling price hikes, despite sluggish domestic demand, rising energy prices, and other factors. • The High-Performance Products business recorded higher revenue but lower profit year on year, as increased sales volume of electrostatic chucks was offset by rising costs, including one-time relocation expenses, equipment depreciation, and developmental expenses, and other factors. • Profit attributable to owners of the parent also increased year on year due to the profit growth in the Cement business. [Reference Information] The new production facility for electrostatic chucks was completed on July 9 as scheduled, and shipments have begun. Despite tough conditions in domestic cement demand, operating profit increased partly due to the impact of price hikes implemented in the previous period. The High-Performance Products business saw a decline in profit partly due to increased costs, including one-time relocation expenses, equipment depreciation, and developmental expenses. Company-wide earnings also improved due to the profit growth in the Cement business. Key points Net sales (1st quarter results) 56,100mn yen +4,500mn yen YoY +8.8% YoY Full-year earnings forecast 234,500mn yen +10,800mn yen YoY +4.8% YoY Operating profit (1st quarter results) 3,460mn yen +1,720mn yen YoY +99.1% YoY Cement operating profit (1st quarter results) 1,570mn yen +1,640mn yen YoY * FY2025 1Q: -70mn yen Full-year earnings forecast 5,000mn yen -500mn yen YoY -9.0% YoY High-Performance Products operating profit (1st quarter results) 740mn yen -150mn yen YoY -17.0% YoY Full-year earnings forecast 15,000mn yen +1,350mn yen YoY +9.9% YoY Full-year earnings forecast 4,200mn yen +1,780mn yen YoY +73.4% YoY
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2. Domestic Cement Demand / Our Sales Volume Note: First-half and full-year forecasts remain unchanged 4 Our domestic sales volume Our export volume Domestic cement demand 719.6 697.1 678.9 356.6 343.4 335.4 363.0 353.7 343.5 FY2024 FY2025 FY2026 1st half 2nd half 126.8 137.5 160.0 64.1 64.6 82.0 62.6 72.9 78.0 FY2024 FY2025 2026年 1st half 2nd half 1,860 1,739 1,634 1,535 1,480 1,868 1,719 1,631 1,518 1,520 3,728 3,458 3,266 3,053 3,000 0 1,000 2,000 3,000 4,000 FY2022 FY2023 FY2024 FY2025 FY2026 Forecast 1st half 2nd half FY2026 Forecast FY2026 Forecast 1st quarter (April to June) Result: 721 1st quarter (April to June) Result: 167.1 1st quarter (April to June) Result: 37.8 (Unit: 10,000t) (Unit: 10,000t) (Unit: 10,000t)
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3. FY2026 1st Quarter Financial Summary 5 Year on year ① Net sales • Increased mainly due to domestic cement selling price hikes and increased sales volumes of high- performance products and electrostatic chucks. ② Operating profit • Increased mainly due to the impact of cement price hikes implemented in the previous period. • The Cement business saw an improvement in profitability, mainly due to the impact of domestic selling price hikes implemented in the previous period. • In the High-Performance Products business, sales volume of electrostatic chucks increased. Although profits declined in the first quarter mainly due to higher costs, including one-time expenses, progress has generally been as planned against the forecast. To achieve the first half targets, we will steadily deliver the benefits of the new production facility for expanding production capacity. Unit: 100 million yen FY2025 FY2026 1st quarter 1st quarter Net sales 515 561 45 8.8% Operating profit 17.4 34.6 17.2 99.1% (Cement business only) (-0.7) (15.7) (16.4) (－ ) Operating profit margin 3.4% 6.2% 2.8% Non-operating income/expenses, net 1.8 1.3 -0.5 -29.5% Ordinary profit 19.2 35.9 16.7 87.0% Extraordinary income/losses, net 3.8 2.2 -1.6 -41.2% Profit attributable to owners of the parent 14.8 22.0 7.2 48.3% YoY Change YoY Change Rate
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3. FY2026 1st Quarter Sales and Income by Segment (Year-on-year) 6 Unit: 100 million yen Net sales Operating profit Operating profit margin Net sales Operating profit Operating profit margin Net sales Change rate Operating profit Change rate Cement 366 -0.7 -0.2% 395 15.7 4.0％ 28 7.7％ 16.4 － Mineral Resources 41 5.5 13.4％ 46 7.6 16.6％ 5 11.0％ 2.1 37.5％ Cement-Related Products 47 -0.6 -1.3% 49 -0.2 -0.5% 2 4.3％ 0.4 － High-Performance Products 52 8.9 17.1％ 62 7.4 12.0％ 10 18.5％ -1.5 -17.0% Advanced Materials 46 9.1 19.8％ 54 6.4 12.0％ 8 17.3％ -2.6 -28.9% Optoelectronics 7 -0.1 -2.2% 8 1.0 11.6％ 2 26.7％ 1.1 － Other 9 4.0 44.4％ 10 3.7 38.3％ 1 8.3％ -0.3 -6.5% Total 515 17.4 3.4％ 561 34.6 6.2％ 45 8.8％ 17.2 99.1％ YoY ChangeFY2026 1st quarterFY2025 1st quarter
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3. FY2026 1st Quarter Breakdown of Changes in Operating Profit from Cement Business (Year-on-year) 7 (100 million yen) 22 2 4 16 -1 -1 -5 -4 -2 FY2025 1st quarter Sales/production volume Sales prices Coal/oil prices Electricity/raw material prices Recycling and rationalization Exchange rates Others FY2026 1st quarter -5 0 5 10 15 20 25 Sensitivity ・ Coal: $1/t falling → 90 million yen/year improving ・ Oil: $1/bbl falling → 60 million yen/year improving ・ Exchange rates: ¥1/$ rising → 90 million yen/year improving
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3. FY2026 1st Quarter Earnings of Mineral Resources and Cement-Related Products 8 Unit: 100 million yen FY2025 1st quarter FY2026 1st quarter YoY Change Higher revenue and income ・ Higher revenue and income ・ Mineral Resources Cement-Related Products Net sales Operating profit Operating profit Net sales -0.6 -0.2 0.4 Higher revenue and income mainly due to an increase in sales volume of precast concrete products Higher revenue and income mainly due to the impact of price hikes 41 47 46 5 5.5 7.6 2.1 49 2
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3. FY2026 1st Quarter Breakdown of Changes in Operating Income from High-Performance Products Business (Year-on-year) 9 (100 million yen) 2 1 7 9 -1 -4 FY2025 1st quarter Electrostatic chuck volume change and lineup Depreciation expenses (new production facility, etc.) Optical business Other (Development expenses, etc.) FY2026 1st quarter 0 2 4 6 8 10 12 14
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4. FY2026 (Fiscal Year Ending March 31, 2027) Key Points of Earnings Forecast 10 • We expect profit to decline in the Cement business, mainly factoring in lower sales and production volumes, as well as cost deterioration due to soaring energy prices. • We expect profit to increase in the High-Performance Products business mainly due to an increase in sales volume of electrostatic chucks alongside a recovery of semiconductor demand. • While expecting a turnaround in ROIC due to an increase in operating profit, we strive to further improve it toward the target together with ROE. Although the progress rate has been high for the first quarter results against the forecast announced at the beginning of the year, we have decided to maintain our earnings forecast at this time because trends in exchange rates and energy prices remain uncertain. We will work to steadily achieve the forecast and even exceed it.Key points Net sales (FY2026 Forecast) 234,500mn yen +4.8% YoY Medium-term Management Plan (FY2028 Target) 255,500mn yen Operating profit (FY2026 Forecast) 15,000mn yen +9.9% YoY Medium-term Management Plan (FY2028 Target) 27,000mn yen ROE (FY2026 Forecast) 5.0% -0.8pp YoY Medium-term Management Plan (FY2028 Target) 9.0% or higher ROIC (FY2026 Forecast) 3.5% +0.2pp YoY Medium-term Management Plan (FY2028 Target) 6.0% or higher Total return ratio (FY2026 Forecast) 38% Medium-term Management Plan (FY26-28 Average) 50% or higher
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4. FY2026 Earnings Forecast (Year-on-year) 11 *FY26 Forecast, Exchange rate: ¥155/$ (1st half: ¥155/$, 2nd half: ¥155/$), Coal (CIF): $140/t (1st half: $135/t, 2nd half: $145/t), Oil: $100/bbl (1st half: $100/bbl, 2nd half: $100/bbl) • Forecasts announced at the beginning of the year (May 13) remain unchanged. Unit: 100 million yen 1st half 2nd half Full year YoY Change YoY Change YoY Change Net sales 1,110 1,235 2,345 52 4.9％ 56 4.7％ 108 4.8％ Operating profit 45.0 105.0 150.0 3.8 9.2％ 9.7 10.2％ 13.5 9.9％ (Cement business only) (5.0) (45.0) (50.0) (4.6) － -9.6 (-17.6%) -5.0 (-9.0%) Operating profit margin 4.1％ 8.5％ 6.4％ 0.2％ 0.4％ 0.3％ Non-operating income/expenses, net -2.0 -3.0 -5.0 -3.1 － -9.4 － -12.6 － Ordinary profit 43.0 102.0 145.0 0.7 1.6％ 0.3 0.3％ 0.9 0.7％ Extraordinary income/losses, net 1.0 -5.0 -4.0 -35.0 -97.2% 14.7 － -20.4 － Profit attributable to owners of the parent 31.0 69.0 100.0 -24.9 -44.6% 12.8 22.7％ -12.1 -10.8% Dividend per share 60 yen *20 yen - - - - FY2026 Forecast Full year2nd half1st half YoY Change * We plan to implement a three-for-one stock split of the common shares, effective October 1, 2026. The dividend per share for the second half (year-end) of FY2026 reflects the impact of this stock split. If this stock split is not taken into account, the year-end dividend would be 60.00 yen, and the total annual dividend would be 120.00 yen.
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• Forecasts announced at the beginning of the year (May 13) remain unchanged. 4. FY2026 Earnings Forecast Sales and Income by Segment (Year-on-year) 12 Unit: 100 million yen Net sales Operating profit Operating profit margin Net sales Operating profit Operating profit margin Net sales Change rate Operating profit Change rate Cement 1,588 55.0 3.5％ 1,590 50.0 3.1％ 2 0.1％ -5.0 -9.0% Mineral Resources 175 29.9 17.1％ 190 30.0 15.8％ 15 8.5％ 0.1 0.5％ 230 14.8 6.4％ 240 15.0 6.3％ 10 4.3％ 0.2 1.3％ 208 24.2 11.6％ 283 42.0 14.8％ 75 36.0％ 17.8 73.4％ Advanced Materials 181 24.8 13.7％ 255 42.0 16.5％ 74 41.1％ 17.2 69.4％ Optoelectronics 27 -0.6 -2.1% 28 0.0 － 1 2.5％ 0.6 － Other 36 13.9 39.2％ 42 13.0 31.0％ 6 18.2％ -0.9 -6.7% Total 2,237 136.5 6.1％ 2,345 150.0 6.4％ 108 4.8％ 13.5 9.9％ High-Performance Products ChangeFY2026 ForecastFY2025 Results Cement-Related Products
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• Forecasts announced at the beginning of the year (May 13) remain unchanged. 4. FY2026 Earnings Forecast Breakdown of Changes in Operating Income from Cement Business (Year-on-year) 13 (100 million yen) 55 -9 46 -22 -9 8 -5 -14 50 FY2025 Sales/production volume Sales prices Coal/oil prices Electricity/raw material prices Recycling and rationalization Exchange rates Others FY2026 Forecast 0 10 20 30 40 50 60 70 80 90 100 Others: -14 Subsidiaries, etc. Sensitivity ・ Coal: $1/t falling → 90 million yen/year improving ・ Oil: $1/bbl falling → 60 million yen/year improving ・ Exchange rates: ¥1/$ rising → 90 million yen/year improving
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4. FY2026 Earnings Forecast Mineral Resources and Cement-Related Products 14 Unit: 100 million yen FY2025 Results FY2026 Forecast YoY Change Higher revenue and income ・ Higher revenue and income ・ 14.8 15.0 0.2 Higher revenue due to a higher sales volume of limestone, but income to be flat YoY due to increased mining costs Higher revenue due to an increase in sales volume of concrete structure repair/reinforcement materials and an increase in the number of ground improvement works, but income to be flat YoY due to an increase in manufacturing costs 175 230 190 15 29.9 30.0 0.1 240 10 Mineral Resources Cement-Related Products Net sales Operating profit Operating profit Net sales • Forecasts announced at the beginning of the year (May 13) remain unchanged.
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• Forecasts announced at the beginning of the year (May 13) remain unchanged. 4. FY2026 Earnings Forecast Breakdown of Changes in Operating Income from High-Performance Products Business (Year-on-year) 15 (100 million yen) 24 27 2 1 42-8 -4 FY2025 Electrostatic chuck volume change and lineup Cost reduction including automation Depreciation expenses (new production facility, etc.) Optical business Other (Development expenses, etc.) FY2026 Forecast 0 10 20 30 40 50 60
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Table of Contents FY2026 1st Quarter Key Points of Financial Results01 Domestic Cement Demand / Our Sales Volume02 FY2026 1st Quarter Financial Summary03 FY2026 Earnings Forecast04 Supplementary Financial Materials05
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5. FY2026 Earnings Forecast Sales and Income by Segment (Semiannual) 17 *FY26 Forecast, Exchange rate: ¥155/$ (FY25 Average: ¥150/$), Coal (CIF): $140/t (FY25: $135/t), Oil: $100/bbl (FY25: $72/bbl) Unit: 100 million yen 1st half 2nd half Full year 1st half 2nd half Full year 1st half 2nd half Full year Cement 752 836 1,588 765 825 1,590 13 -11 2 Mineral Resources 86 89 175 94 96 190 8 7 15 106 125 230 111 129 240 5 4 10 96 112 208 119 164 283 23 52 75 Advanced Materials 83 97 181 106 149 255 23 52 74 Optoelectronics 13 15 27 13 15 28 0 0 1 Other 18 18 36 21 21 42 3 3 6 Total 1,058 1,179 2,237 1,110 1,235 2,345 52 56 108 Cement 0.4 54.6 55.0 5.0 45.0 50.0 4.6 -9.6 -5.0 Mineral Resources 14.8 15.1 29.9 15.0 15.0 30.0 0.2 -0.1 0.1 4.3 10.5 14.8 4.0 11.0 15.0 -0.3 0.5 0.2 13.6 10.7 24.2 15.0 27.0 42.0 1.4 16.3 17.8 Advanced Materials 14.3 10.5 24.8 15.0 27.0 42.0 0.7 16.5 17.2 Optoelectronics -0.7 0.1 -0.6 0.0 0.0 0.0 0.7 -0.1 0.6 Other 7.4 6.5 13.9 6.0 7.0 13.0 -1.4 0.5 -0.9 Total 41.2 95.3 136.5 45.0 105.0 150.0 3.8 9.7 13.5 Operating profit ChangeFY2026 ForecastFY2025 Results Net sales Cement-Related Products Cement-Related Products High-Performance Products High-Performance Products • Forecasts announced at the beginning of the year (May 13) remain unchanged.
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• Forecasts announced at the beginning of the year (May 13) remain unchanged. 5. FY2026 Breakdown of Changes in Operating Income from Cement Business (Semiannual) 18 Sensitivity Coal $1/t falling 90 million yen/year improving Oil $1/bbl falling 60 million yen/year improving Exchange rates ¥1/$ rising 90 million yen/year improving Unit: 100 million yen 1st half 2nd half Full year Sales and production volume -4 -5 -9 Sales prices 35 11 46 Coal and oil prices -9 -13 -22 Electricity and raw material prices -4 -5 -9 Recycling and rationalization 5 3 8 Exchange rates -4 -1 -5 Others -14 0 -14 Cement operating profit change 5 -10 -5 FY2025→FY2026
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• For the first half of FY2026, the forecasts announced at the beginning of the year (May 13) remain unchanged. 5. FY2026 First-Half Earnings Forecast Sales and Income by Segment 19 Note) 2nd quarter forecast = 1st half forecast - 1st quarter results Unit: 100 million yen 1st quarter 2nd quarter 1st quarter 2nd quarter 1st quarter 2nd quarter (Apr.–Jun.) (Jul.–Sep.) (Apr.–Jun.) (Jul.–Sep.) (Apr.–Jun.) (Jul.–Sep.) Cement 366 386 752 395 370 765 28 -15 13 51.6% Mineral Resources 41 45 86 46 48 94 5 3 8 48.7% Cement-Related Products 47 59 106 49 62 111 2 3 5 43.7% High-Performance Products 52 44 96 62 57 119 10 13 23 52.0% Advanced Materials 46 38 83 54 52 106 8 15 23 50.6% Optoelectronics 7 6 13 8 5 13 2 -2 0 63.4% Other 9 9 18 10 11 21 1 3 3 46.5% Total 515 542 1,058 561 549 1,110 45 7 52 50.5% Cement -0.7 1.1 0.4 15.7 -10.7 5.0 16.4 -11.8 4.6 314.8% Mineral Resources 5.5 9.3 14.8 7.6 7.4 15.0 2.1 -1.9 0.2 50.6% Cement-Related Products -0.6 4.9 4.3 -0.2 4.2 4.0 0.4 -0.7 -0.3 - High-Performance Products 8.9 4.7 13.6 7.4 7.6 15.0 -1.5 2.9 1.4 49.4% Advanced Materials 9.1 5.2 14.3 6.4 8.6 15.0 -2.6 3.4 0.7 43.0% Optoelectronics -0.1 -0.5 -0.7 1.0 -1.0 0.0 1.1 -0.4 0.7 - Other 4.0 3.4 7.4 3.7 2.3 6.0 -0.3 -1.2 -1.4 62.4% Total 17.4 23.8 41.2 34.6 10.4 45.0 17.2 -13.4 3.8 77.0% 1st quarter progress rate (vs. 1st half forecast) Operating profit YoY ChangeFY2026 1st half forecastFY2025 1st half results Net sales 1st half1st half1st half
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20 Unit: 100 million yen (Reference) Initial forecast As of March 31, 2026 As of June 30, 2026 Change As of March 31, 2027 (Forecast) Cash and deposits 166 147 -19 150 Property, plant and equipment 1,944 1,931 -13 1,972 Investment securities 437 429 -8 431 Other assets 1,073 1,107 34 1,085 Total assets 3,620 3,614 -6 3,638 Interest-bearing liabilities 864 881 17 880 Other liabilities 776 756 -20 723 Total liabilities 1,640 1,637 -3 1,603 Net assets 1,979 1,977 -3 2,035 Total liabilities and net assets 3,620 3,614 -6 3,638 5. Supplementary Materials Status of Assets and Liabilities
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5. Supplementary Materials Changes in Performance etc. 21 FY2022 FY2023 FY2024 FY2025 FY2026 Forecast 100 million yen 2,047 2,225 2,195 2,237 2,345 100 million yen -85.6 72.5 93.5 136.5 150.0 100 million yen -78.5 84.8 93.7 144.1 145.0 100 million yen -57.2 153.4 90.1 112.1 100.0 100 million yen 3,566 3,563 3,530 3,620 3,638 100 million yen 997 795 833 864 880 100 million yen 1,846 1,968 1,937 1,979 2,035 Return on assets (ROA) ％ -2.3 2.4 2.6 4.0 4.0 Return on equity (ROE) ％ -3.0 8.1 4.7 5.8 5.0 Return on invested capital (ROIC) ％ -2.1 1.8 2.4 3.3 3.5 Debt/equity (D/E) ％ 54 40 43 44 43 Free cash flow (FCF) 100 million yen -360 284 31 60 5 ％ 22.6 19.6 16.9 17.0 16.1 Net assets Net asset ratio of cross-shareholdings Net sales Operating profit Ordinary profit Profit attributable to owners of the parent Total assets Interest-bearing liabilities
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5. Supplementary Materials Changes in Performance etc. 22 FY2022 FY2023 FY2024 FY2025 FY2026 Forecast Capital investment 297 294 308 315 271 Depreciation 202 217 226 236 243 R&D expenses 31 35 36 36 42 Financial balance 13 6 4 -1 -7 Number of employees at the end of the period Persons 2,896 2,886 2,952 3,045 － Domestic demand for cement 10,000t 3,728 3,458 3,266 3,053 3,000 Average exchange rate yen/US$ 135 144 152 150 155 Coal procurement price (CIF) 280 210 155 135 140 Oil US$/bbl 96 82 79 72 100 100 million yen 100 million yen 100 million yen 100 million yen US$/t (approximate)
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[Topic 1] Revision of the Medium- to Long-Term Vision for Carbon Neutrality 23 In May 2026, we released “SOCN2050” Version 2.0, which includes a roadmap and detailed investment plans for our carbon neutrality initiatives, as well as revisions based on these updates, such as expanding the scope of our interim reduction targets and establishing new reduction targets for FY2035. Please visit our website for details. https://www.soc.co.jp/news/86432/
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[Topic 2] Key Feedback from Shareholders and Investors and Our Responses 24 We regard dialogue with our shareholders and investors as a critical process for enhancing corporate value, utilizing their feedback to improve our management and disclosures. Category Feedback Received Responses Shareholder Returns Consider providing stable dividends even amid significant volatility in business performance. • We announced a new shareholder return policy in the FY2026–28 Medium-Term Management Plan. • We will aim for a total payout ratio of 50% or more a three-year average, and have set a minimum dividend of 120 yen per share(*). Information Disclosure Tell us how you address questions from investors. • Starting with the full-year financial results for FY2024 (ended March 31, 2025), we have been disclosing the content of the Q&A sessions from our financial results briefings on our website. Information Disclosure Enhance disclosures on the High-Performance Products business, which you have identified as a growth area. • We disclosed the growth strategy for the High-Performance Products business in the FY2026–28 Medium-Term Management Plan. • Also, starting with the full-year financial results for FY2025 (ended March 31, 2026), we have been disclosing the factors affecting changes in operating profit for both results and earnings forecasts. Management Indicators Disclose business-specific ROIC to help us understand the transformation of the business portfolio. • As stated in the FY2026–28 Medium-Term Management Plan, we will introduce business-specific ROIC and aim to achieve profitability that exceeds the hurdle rate for each business. Sustainability Explain your carbon neutrality initiatives to address new regulations and changes in the external environment. • We released SOCN2050 Ver.2 in May 2026 to address changes in the external environment, etc. https://www.soc.co.jp/news/86432/ Key actions taken based on dialogue *We plan to implement a three-for-one stock split of the common shares, effective October 1, 2026. In conjunction with this stock split, we will revise the minimum annual dividend under the above shareholder return policy to 40 yen per share. This revision will be implemented in accordance with the split ratio, and there will be no substantive change to the minimum annual dividend per share.
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Caution About Forward-looking Statements 25 • 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.