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Reference Materials of Financial Results for the Six Months Ended September 30, 2025 November 11, 2025
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2025©TAIHEIYO CEMENT Corporate Information 2 Established May 3, 1881 Capital 86,174 million yen Headquarters BUNKYO GARDEN GATE TOWER, 1-1-1, Koishikawa, Bunkyo-ku, Tokyo 112-8503, Japan Number of employees Consolidated: 12,586 Non-consolidated: 1,733 (not including seconded staff) Subsidiaries 201 (including 129 consolidated subsidiaries and 5 equity-method non-consolidated subsidiaries) Affiliates 105 (including 36 equity-method affiliates) （ as of March 31, 2025 ） Chichibu Onoda Cement Corporation 1994Chichibu Cement Co., Ltd. 1923 Asano Cement Co., Ltd. 1883 Nihon Cement Co., Ltd. 1947 1998 Onoda Cement Co., Ltd. 1881 Mission of the Taiheiyo Cement Group Our mission is to contribute to social infrastructure development by providing solutions that are environmentally efficient, enhance our competitive position and bring value to our stakeholders.
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2025©TAIHEIYO CEMENT Market Area Redding◆ Mojave◆◆Oro Grande ◆Rillito ◆ Cement plant ◇ Clinker grinding plant ●TAIHEIYO CEMENT HEADQUARTERS ◆Cebu ◆Nghi Son ［Cement Plants］ ❶ Kamiiso Plant ❷ Ofunato Plant ❸ Kumagaya plant ❹ Saitama Plant ❺ Fujiwara Plant ❻ Oita Plant ❶ ❷ ❸❹ ❺ ❻ ［Group Production Plants］ ❼ DC Co., Ltd. ❽ Myojo Cement Co., Ltd. ❾ Tsuruga Cement Co., Ltd. ❼ ❽ ❾ ◇Lae United States Net sales 290,675million yen Clinker production capacity 5,280thousand tonnes Asia-Pacific Net sales 73,654million yen Clinker production capacity 5,520thousand tonnes Japan Net sales 531,966million yen Clinker production capacity 17,058thousand tonnes （as of March 31, 2025） 3
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2025©TAIHEIYO CEMENT Contents 4 1．Highlights of Consolidated Financial Results P .5 2．Financial Results for the Fiscal 2026 Q2 P .8 (1)Consolidated Segment Information P .9 (2)Consolidated Statements of Income P .13 (3)Consolidated Balance Sheets P .14 (4)Consolidated Statements of Cash Flows P .15 3．Forecast for the Fiscal 2026 P .16 (1)Consolidated Statements of Income P .18 (2)Consolidated Segment Information P .19 4．Shareholder Returns P .23 Appendix P .25
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2025©TAIHEIYO CEMENT 1． Highlights of Consolidated Financial Results 5
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2025©TAIHEIYO CEMENT 1．Highlights of Consolidated Financial Results 《Summary of Financial Results》 ➢ In domestic cement, operating profit increased due to the effect of price hikes and cost improvement. ➢ Sales and profit decreased at overseas subsidiaries, etc. ➢ Net profit fell partly due to the reaction to the extraordinary profit of the previous year. 6 FY2025 Q2 FY2026 Q2 Change Net sales 443,676 438,141 (5,535) Operating profit 36,389 32,853 (3,535) Ordinary profit 35,371 32,946 (2,425) Profit attributable to owners of parent 30,192 24,485 (5,707) Dividend per share (Yen) 40 50 +10 (Million yen）
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2025©TAIHEIYO CEMENT 1．Highlights of Consolidated Financial Results 《Main Indicators》 《Environmental Factors》 7 FY2025 Q2 FY2026 Q2 Change Average exchange rate (Yen/US$) 152.4 148.4 (4.0) Average procurement price of imported coal, etc. for domestic (C&F $/t) 155 135 (20) FY2025 Q2 FY2026 Q2 Change Operating profit to net sales ratio (%) 8.2 7.5 (0.7) Basic earnings per share (Yen) 261.2 219.7 (41.5) End of Mar. 2025 End of Sep. 2025 Change Net assets per share (Yen) 5,758.9 5,737.9 (21.0) Capital adequacy ratio (%) 45.1 44.6 (0.5) Net debt/equity ratio (Times) 0.49 0.52 +0.03
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2025©TAIHEIYO CEMENT 2．Financial Results for the Fiscal 2026 Q2 8
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2025©TAIHEIYO CEMENT 2．Financial Results for the Fiscal 2026 Q2 9 (1) Consolidated Segment Information FY2025 Q2 FY2026 Q2 Change FY2025 Q2 FY2026 Q2 Change Cement Business Domestic 159,294 162,640 +3,345 5,234 11,290 +6,056 Overseas Subsidiaries, etc. 175,138 164,091 (11,047) 21,079 9,895 (11,184) Total 334,432 326,731 (7,702) 26,313 21,184 (5,129) 43,920 45,303 +1,382 4,822 5,190 +368 38,374 39,909 +1,536 3,824 4,516 +692 21,325 21,470 +145 993 917 (76) 34,649 35,471 +822 874 1,103 +228 472,701 468,884 (3,817) 36,826 32,910 (3,916) (29,025) (30,743) (1,718) (438) (57) +381 443,676 438,141 (5,535) 36,389 32,853 (3,535) (Million yen) Net sales Operating profit Mineral Resources Business Environmental Business Construction Materials Business Other Total Consolidated Total Elimination
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2025©TAIHEIYO CEMENT 52 3 84 -9 27 -2 113 -23 -19 FY2025 Q2 Volume difference in domestic Volume difference in export Price difference in domestic Price difference in export Variable cost Fixed cost Ready-mixed concrete, etc. FY2026 Q2 2．Financial Results for the Fiscal 2026 Q2 ①Domestic Cement Business ➢ Domestic demand declined due to a decrease in shipments resulting from the broader adoption of the two-day weekend system by ready-mixed concrete cooperatives, as well as reduced working hours at construction sites caused by heatstroke prevention measures and bad weather conditions. Our cement sales volume also declined. ➢ Operating profit increased due to higher selling prices and cost improvements for cement and soil stabilizers, despite the decrease in sales volume. 10 Operating Profit (Hundred million yen) FY2025 Q2 FY2026 Q2 Change Sales volume (Thousand t) Domestic 6,165 5,656 (509) Export 1,462 1,643 +182 Net sales (Million yen) 159,294 162,640 +3,345 Operating profit (Million yen) 5,234 11,290 +6,056 Net Sales (Hundred million yen) 1,593 -74 12 91 -10 14 1,626 FY2025 Q2 Volume difference in domestic Volume difference in export Price difference in domestic Price difference in export Ready-mixed concrete, etc. FY2026 Q2
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2025©TAIHEIYO CEMENT 2．Financial Results for the Fiscal 2026 Q2 ②Overseas Subsidiaries, etc. ➢ Demand was affected by bad weather conditions and the slowdown in the private sector, etc. as interest rates remained high. ➢ Decrease in profit resulted from a decline in sales volumes of cement and ready-mixed concrete due to reduced demand, despite efforts to implement price increases and cost reduction measures. ➢ In the aggregates business, sales volume increased due to the impact of acquisitions. 《U.S.A.》 ➢ Vietnam: Secured profit at a level comparable to the previous year, supported by robust domestic demand. ➢ Philippines: Profitability deteriorated due to falling sales prices, etc. caused by the continued influx of low-priced imports. Initiatives to improve earnings are ongoing. 11 FY2025 Q2 FY2026 Q2 Change 3,074 2,962 (111) 2,924 2,381 (543) 5,671 6,032 +362 (Hundred million yen) 1,510 1,392 (118) (Million $) 991 938 (53) (Hundred million yen) 220 122 (98) (Million $) 144 82 (62) Cement (Thousand t) Aggregates (Thousand t) Net sales Operating profit Ready-mixed concrete (Thousand cy) 《Asia and others》 (Simple sum of consolidated subsidiaries) *The impact of foreign exchange fluctuations on changes in overseas subsidiaries is as follows. Net sales: -51 hundred million yen, Operating profit: -3 hundred million yen Cement (Thousand t) 3,437 3,722 +286 Net sales (Hundred million yen) 277 281 +4 Operating profit (Hundred million yen) (2) (15) (13) FY2025 Q2 FY2026 Q2 Change
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2025©TAIHEIYO CEMENT 2．Financial Results for the Fiscal 2026 Q2 ③Mineral Resources, Environmental, Construction Materials and Other Business 12 FY2025 Q2 FY2026 Q2 Change Main Factors of Changes in Net Sales and Operating Profit( Net Change) Net sales 43,920 45,303 +1,382 Operating profit 4,822 5,190 +368 Net sales 38,374 39,909 +1,536 Operating profit 3,824 4,516 +692 Net sales 21,325 21,470 +145 Operating profit 993 917 (76) Net sales 34,649 35,471 +822 Operating profit 874 1,103 +228 (Million yen) Mineral Resources Business Environmental Business Construction Materials Business Other Despite a decrease in sales by volume of aggregates and limestone for the domestic market, sales by volume of products for immobilizing heavy metal contaminants in soil increased.Efforts to pass on various cost increases to selling prices progressed in the entire business. Despite efforts to optimize selling prices of ALC (Autoclaved Lightweight aerated Concrete) as well as construction and civil engineering materials, the operating results were affected by various cost increases including shipping and labor costs. While sales in sewage sludge treatment were sluggish, operations of intermediary storage and port relay of soil generated from the Linear Chuo Shinkansen construction and coal processing remained strong.
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2025©TAIHEIYO CEMENT 2．Financial Results for the Fiscal 2026 Q2 13 (2)Consolidated Statements of Income FY2025 Q2 FY2026 Q2 Change Net sales 443,676 438,141 (5,535) Operating profit 36,389 32,853 (3,535) Non-operating income and expenses (1,017) 93 +1,110 Ordinary profit 35,371 32,946 (2,425) Extraordinary income and losses 4,499 (939) (5,438) Profit before income taxes 39,871 32,008 (7,863) Income taxes 8,997 6,906 (2,091) Profit attributable to non-controlling interests 681 616 (65) Profit attributable to owners of parent 30,192 24,485 (5,707) (Million yen)
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2025©TAIHEIYO CEMENT 2．Financial Results for the Fiscal 2026 Q2 (3)Consolidated Balance Sheets 14 End of Mar. 2025 End of Sep. 2025 Change End of Mar. 2025 End of Sep. 2025 Change Cash and deposits 74,987 77,495 +2,508 388,354 425,746 +37,392 Notes and accounts receivable - trade, and contract assets 180,544 187,621 +7,077 359,217 338,616 (20,601) Inventories 127,846 129,235 +1,389 747,571 764,362 +16,791 Other 22,354 20,960 (1,394) Share capital 86,174 86,174 ー Total current assets 405,731 415,310 +9,580 Capital surplus 50,288 49,360 (928) Total property, plant and equipment 738,702 731,910 (6,792) Retained earnings 417,460 437,484 +20,024 Total intangible assets 47,015 42,877 (4,138) Treasury shares (22,131) (21,931) +200 Total investments and other assets 232,248 243,767 +11,519 Total shareholders' equity 531,791 551,087 +19,296 109,879 88,586 (21,293) 34,455 29,829 (4,625) Total non-current assets 1,017,965 1,018,554 +589 676,124 669,502 (6,622) 1,423,695 1,433,864 +10,169 1,423,695 1,433,864 +10,169 End of Dec. 2024 End of Jun. 2025 Change End of Mar. 2025 End of Sep. 2025 Change 158.2 144.8 (13.4) 389,688 410,591 +20,902 Total assets Total liabilities Exchange rate at end of period (Yen/US$) Interest-bearing debt (Million yen) Accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets (Million yen) Current liabilities Non-current liabilities Liabilities Current assets Shareholders' equity Non-current assets Net assets
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2025©TAIHEIYO CEMENT 2．Financial Results for the Fiscal 2026 Q2 15 (４)Consolidated Statements of Cash Flows FY2025 Q2 FY2026 Q2 Change Cash flows from operating activities* 41,099 46,744 +5,646 Cash flows from investing activities (40,499) (48,574) (8,075) Free cash flows 600 (1,830) (2,429) Cash flows from financing activities (5,575) 8,222 +13,796 *Depreciation and amortization included 29,418 33,863 +4,446 (Million yen)
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2025©TAIHEIYO CEMENT 3．Forecast for the Fiscal 2026 16
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2025©TAIHEIYO CEMENT 3．Forecast for the Fiscal 2026 《Summary for the Fiscal 2026 Revised Forecast》 ➢ Revised domestic cement demand down to 30.5 million tons. ➢ Lowered forecasts for overseas subsidiaries. ➢ Downward revision from May forecast due to cost review. 17 《Precondition》 ➢ The precondition for the FY 2026 revised forecast is as follows. FY2025 Actual FY2026 Forecast Change Domestic cement demand (Ten thousand t) 3,266 3,050 (216) Average procurement price of imported coal, etc. for domestic (C&F $/t） 150 130 (20) Average exchange rate (Yen/US$) 151.7 148.0 (3.7) (Sensitivity: Impact on operating profit)30 million yen positive impact by 1 yen drop in foreign exchange
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2025©TAIHEIYO CEMENT 18 (1) Consolidated Statements of Income 3．Forecast for the Fiscal 2026 FY2025 Actual FY2026 Forecast Change Net sales 8,963 9,060 +97 Operating profit 777 700 (77) Non-operating income and expenses (24) (20) +4 Ordinary profit 754 680 (74) Extraordinary income and losses (8) (70) (62) Profit before income taxes 746 610 (136) Income taxes 158 145 (13) Profit attributable to non-controlling interests 14 15 +1 Profit attributable to owners of parent 574 450 (124) (Hundred million yen)
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2025©TAIHEIYO CEMENT 19 (2) Consolidated Segment Information 3．Forecast for the Fiscal 2026 FY2025 Actual FY2026 Forecast Change FY2025 Actual FY2026 Forecast Change Cement Business Domestic 3,234 3,440 +206 161 260 +99 Overseas Subsidiaries, etc. 3,448 3,240 (208) 384 214 (170) Total 6,682 6,680 (2) 544 474 (70) 882 930 +48 96 99 +3 809 830 +21 90 89 (1) 443 440 (3) 24 16 (8) 786 820 +34 39 31 (8) 9,602 9,700 +98 793 709 (84) (639) (640) (1) (16) (9) +7 8,963 9,060 +97 777 700 (77) Net sales Operating profit (Hundred million yen) Mineral Resources Business Environmental Business Construction Materials Business Other Total Elimination Consolidated Total
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2025©TAIHEIYO CEMENT 3,234 -127 35 193 -11 116 3,440 FY2025 Actual Volume difference in domestic Volume difference in export Price difference in domestic Price difference in export Ready-mixed concrete, etc. FY2026 Forecast 161 -35 10 179 -10 25 -93 23 260 FY2025 Actual Volume difference in domestic Volume difference in export Price difference in domestic Price difference in export Variable cost Fixed cost Ready-mixed concrete, etc. FY2026 Forecast ①Domestic Cement Business ➢ Domestic demand decline due to a decrease in shipments resulting from the broader adoption of the two-day weekend system by ready-mixed concrete cooperatives, as well as reduced working hours at construction sites caused by heatstroke prevention measures and bad weather conditions, despite the presence of factors supporting demand such as national resilience initiatives and the trend of companies returning to domestic investment. We have revised downward our forecast for cement sales volume. ➢ Operating profit increase year-on-year due to successful price hikes for cement and soil stabilizers and cost improvements. 20 Net Sales (Hundred million yen) Operating Profit (Hundred million yen) 3．Forecast for the Fiscal 2026 FY2025 Actual FY2026 Forecast Change Sales volume (Thousand t) Domestic 12,329 11,300 (1,029) Export 3,025 3,600 +575 Net sales (Hundred million yen) 3,234 3,440 +206 Operating profit (Hundred million yen) 161 260 +99
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2025©TAIHEIYO CEMENT ②Overseas Subsidiaries, etc. ➢ Demand continues to be affected by bad weather and a slowdown in the private sector due to persistently high interest rates. ➢ Profit is expected to decrease due to a decline in sales volumes of cement and ready-mixed concrete, driven by reduced demand, despite efforts to implement price increases and cost reduction. ➢ In the aggregates business, sales volume is expected to increase due to the impact of acquisitions. 21 《U.S.A.》 ➢ Vietnam: Profit is expected at a level comparable to the previous year, supported by robust domestic demand. ➢ Philippines: Losses are expected to continue, despite a declining trend in the influx of low-priced imports resulting from the implementation of safeguard measures. Expected to take some time for supply-demand conditions to improve. Cost reduction initiatives continue. 3．Forecast for the Fiscal 2026 《Asia and others》 (Simple sum of consolidated subsidiaries) *The impact of foreign exchange fluctuations on changes in overseas subsidiaries is as follows. Net sales: -105 hundred million yen, Operating profit: -7 hundred million yen 6,123 5,922 (201) 5,479 4,683 (796) 11,512 12,233 +721 (Hundred million yen) 2,976 2,738 (237) (Million $) 1,962 1,856 (106) (Hundred million yen) 410 269 (141) (Million $) 270 182 (88) Cement (Thousand t) Ready-mixed concrete (Thousand cy) Net sales Operating profit Aggregates (Thousand t) FY2025 Actual FY2026 Forecast Change Cement (Thousand t) 6,669 7,380 +711 Net sales (Hundred million yen) 534 551 +17 Operating profit (Hundred million yen) (12) (40) (28) FY2025 Actual FY2026 Forecast Change
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2025©TAIHEIYO CEMENT 《Appendix》 Business Expansion through Acquisition of Ready-Mixed Concrete Assets and Large-Scale Capital Investments This investment initiative is part of the U.S. business growth strategy outlined in the '26 Medium-Term Management Plan', and is aimed at expanding our business and strengthening the supply chain through M&A activities in the ready-mixed concrete business. 2024 Grimes Quarry, State Ready-Mixed Concrete • Securing valuable aggregate sources, stable cement sales channels. 2025 Acquisition of ready-mixed concrete business assets (this transaction) • Expanding ready-mixed concrete operations across the entire West Coast. 2026 (Plan) Stockton Terminal Silo Expansion • Responding to supply chain enhancements and the growing demand for blended cement, SCMs and others. Stockton Terminal Silo under expansion work Purpose of Acquisition • Expansion of the ready-mixed concrete business. • Securing stable cement sales channels. • Securing sources of Supplementary Cementitious Materials[SCMs] such as slag and fly ash. Acquisition Price 712 million USD Acquisition Timing By December 2025 Subject to the fulfillment of conditions precedent, including clearance by relevant authorities. Details of Acquired Assets (1) 28 ready-mixed concrete plants located in Northern California, 2 terminals, etc. (2) 13 ready-mixed concrete plants located in Southern California, etc. Impact of Acquisition (FY2027) (1) Ready-mixed concrete sales volume An increase is expected from 5.48 million cy in FY2025 to 8.24 million cy (2) Net sales of target business 524 million USD in FY2025 (1)Overview of Ready-Mix Concrete Business Asset Acquisition Delivery case of Type IL (Blended Cement) • Used for a 17,000 cy concrete structure • Inside The California Science Center (Los Angeles) Grimes Quarry 22 (2) Recent major acquisitions and significant capital investments
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2025©TAIHEIYO CEMENT 4．Shareholder Returns 23
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2025©TAIHEIYO CEMENT 4. Shareholder Returns ➢ In fiscal 2026, we schedule to increase by 20 yen to 100 yen/share (including interim dividends of 50 yen/share). 《Shareholder Return Policy in 26 Medium-Term Management Plan》 Total return ratio: 33% or more Maintaining steady dividends :Dividend per share of 80 yen or more Agile acquisition of treasury shares 24 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 0.0 20.0 40.0 60.0 80.0 100.0 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Forecast Interim dividends Year-end dividends Total return ratio
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2025©TAIHEIYO CEMENT Appendix 25
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2025©TAIHEIYO CEMENT Forecast for the Fiscal 2026 《Summary for the Fiscal 2026 Revised Forecast》 ➢ Revised domestic cement demand down to 30.5 million tons. ➢ Lowered forecasts for overseas subsidiaries. ➢ Downward revision from May forecast due to cost review. 26 《Precondition》 ➢ The precondition for the FY 2026 revised forecast is as follows. FY2026 Forecast(Prev.) FY2026 Forecast(Rev.) Change Domestic cement demand (Ten thousand t) 3,100 3,050 (50) Average procurement price of imported coal, etc. for domestic (C&F $/t） 140 130 (10) Average exchange rate (Yen/US$) 145.0 148.0 +3.0 (Sensitivity: Impact on operating profit) 30 million yen positive impact by 1 yen drop in foreign exchange
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2025©TAIHEIYO CEMENT 27 (1) Consolidated Statements of Income Forecast for the Fiscal 2026 FY2026 Forecast(Prev.) FY2026 Forecast(Rev.) Change Net sales 9,500 9,060 (440) Operating profit 850 700 (150) Non-operating income and expenses (20) (20) ー Ordinary profit 830 680 (150) Extraordinary income and losses (75) (70) +5 Profit before income taxes 755 610 (145) Income taxes 145 145 ー Profit attributable to non-controlling interests 10 15 +5 Profit attributable to owners of parent 600 450 (150) (Hundred million yen)
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2025©TAIHEIYO CEMENT 28 (2) Consolidated Segment Information Forecast for the Fiscal 2026 FY2026 Forecast (Prev.) FY2026 Forecast (Rev.) Change FY2026 Forecast (Prev.) FY2026 Forecast (Rev.) Change Cement Business Domestic 3,520 3,440 (80) 260 260 ー Overseas Subsidiaries, etc. 3,520 3,240 (280) 335 214 (121) Total 7,040 6,680 (360) 595 474 (121) 960 930 (30) 99 99 ー 850 830 (20) 97 89 (8) 480 440 (40) 28 16 (12) 810 820 +10 31 31 ー 10,140 9,700 (440) 850 709 (141) (640) (640) ー 0 (9) (9) 9,500 9,060 (440) 850 700 (150) (Hundred million yen) Net sales Operating profit Mineral Resources Business Other Total Elimination Consolidated Total Environmental Business Construction Materials Business
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2025©TAIHEIYO CEMENT 260 -35 0 0 11 21 -2 5 260 FY2026 Forecast(Prev.) Volume difference in domestic Volume difference in export Price difference in domestic Price difference in export Variable cost Fixed cost Ready-mixed concrete, etc. FY2026 Forecast(Rev.) 3,520 -73 -4 8 -10 3,440 -1 FY2026 Forecast(Prev.) Volume difference in domestic Volume difference in export Price difference in domestic Price difference in export Ready-mixed concrete, etc. FY2026 Forecast(Rev.) ①Domestic Cement Business ➢ Domestic demand decline due to a decrease in shipments resulting from the broader adoption of the two-day weekend system by ready-mixed concrete cooperatives, as well as reduced working hours at construction sites caused by heatstroke prevention measures and bad weather conditions, despite the presence of factors supporting demand such as national resilience initiatives and the trend of companies returning to domestic investment. We have revised downward our forecast for cement sales volume. 29 Net Sales (Hundred million yen) Operating Profit (Hundred million yen) Forecast for the Fiscal 2026 FY2026 Forecast(Prev.) FY2026 Forecast(Rev.) Change Sales volume (Thousand t) Domestic 11,700 11,300 (400) Export 3,600 3,600 ー Net sales (Hundred million yen) 3,520 3,440 (80) Operating profit (Hundred million yen) 260 260 ー
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2025©TAIHEIYO CEMENT ②Overseas Subsidiaries, etc. ➢ Decline in sales volume as delays in residential and commercial projects lasted longer than expected due to persistently high interest rates, while infrastructure-related shipments remained strong. ➢ Full-scale demand rebound is anticipated from 2027 when the effects of interest rate cuts begin to materialize, although a gradual recovery is expected from 2026. 30 《U.S.A.》 ➢ Philippines: Profitability improvement has been delayed as a full recovery in supply-demand conditions following safeguard implementation is taking longer than expected, even though an increase in sales volume and price hikes were anticipated. Forecast for the Fiscal 2026 《Asia and others》 (Simple sum of consolidated subsidiaries) *The impact of foreign exchange fluctuations on changes in overseas subsidiaries is as follows. Net sales: +56 hundred million yen, Operating profit: +3 hundred million yen 6,262 5,922 (340) 5,656 4,683 (972) 12,632 12,233 (400) (Hundred million yen) 2,920 2,738 (182) (Million $) 2,014 1,856 (158) (Hundred million yen) 349 269 (80) (Million $) 241 182 (59) Net sales Operating profit ChangeFY2026 Forecast(Prev.) FY2026 Forecast(Rev.) Cement (Thousand t) Ready-mixed concrete (Thousand cy) Aggregates (Thousand t) Cement (Thousand t) 7,906 7,380 (526) Net sales (Hundred million yen) 619 551 (68) Operating profit (Hundred million yen) 1 (40) (41) FY2026 Forecast(Prev.) FY2026 Forecast(Rev.) Change
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2025©TAIHEIYO CEMENT 5,909 5,899 5,551 5,009 4,273 4,161 4,265 4,458 4,771 4,555 4,267 4,178 4,188 4,259 4,097 3,867 3,788 3,728 3,458 3,266 1,027 959 1,002 1,067 1,105 997 1,001 963 850 942 1,058 1,153 1,181 1,037 1,053 1,111 1,148 814 686 821 2,959 3,089 3,072 2,947 2,629 2,600 2,707 2,852 3,027 2,921 2,805 2,800 2,833 2,858 2,742 2,616 2,629 2,488 2,258 2,187 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 《Appendix》Domestic cement demand・Cement exports・Amount of waste, etc. utilized Domestic cement demand・Cement exports・Amount of waste, etc. utilized (Ten thousand t) Data created from statistical data of the Japan Cement Association 31 Amount of waste, etc. utilized Domestic cement demand Cement exports
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2025©TAIHEIYO CEMENT 295 311 276 264 323 566 223 365 423 483 630 696 637 308 660 734 759 894 1,019 1,204 531 FY21 FY22 FY23 FY24 FY25 FY26 Forecast FY26 Q2 Taiheiyo Cement Consolidaed subsidiaries 1,742 2,031 3,327 3,086 3,169 4,100 3,315 739 675 708 619 728 800 791 2,481 2,706 4,035 3,705 3,897 4,900 4,106 End of Mar. 2021 End of Mar. 2022 End of Mar. 2023 End of Mar. 2024 End of Mar. 2025 End of Mar. 2026 Forecast End of Sep. 2025 Taiheiyo Cement Consolidaed subsidiaries Transition Data (1) Interest-bearing Debt (2) Capital Investment (Hundred million yen) (Hundred million yen) 32
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2025©TAIHEIYO CEMENT Transition Data (3) Depreciation Expenses (4) Research and Development Expenses (Hundred million yen) (Hundred million yen) 33 * Change in depreciation method from FY 2025 (declining-balance method to straight-line method) 199 218 228 227 182 213 101 328 342 417 436 427 499 238 527 560 644 663 609 712 338 FY21 FY22 FY23 FY24 FY25 FY26 Forecast FY26 Q2 Taiheiyo Cement Consolidaed subsidiaries 38 44 50 49 44 59 24 8 9 9 8 9 11 4 46 53 59 57 52 70 28 FY21 FY22 FY23 FY24 FY25 FY26 Forecast FY26 Q2 Taiheiyo Cement Consolidaed subsidiaries
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2025©TAIHEIYO CEMENT 194 211 197 277 270 182 82 84 86 114 121 121 140 69 278 297 311 398 391 323 151 FY21 FY22 FY23 FY24 FY25 FY26 Forecast FY26 Q2 Operating Profit Depreciation and amortization Transition Data (5)Sales Volume of Cement in Overseas Subsidiaries (Simple sum of consolidated subsidiaries) (6)Overview of Business in the U.S.A. (Ten thousand t) 34 (Million US$) Operating Profit, EBITDA Net sales (Million US$) 612 632 669 683 612 592 296 705 705 643 671 667 738 372 330 268 179 FY21 FY22 FY23 FY24 FY25 FY26 Forecast FY26 Q2 U.S.A Asia and other China 1,432 1,491 1,756 2,020 1,962 1,856 938 FY21 FY22 FY23 FY24 FY25 FY26 Forecast FY26 Q2 *To improve comparability with U.S. peers, U.S. EBITDA has been added.
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2025©TAIHEIYO CEMENT Currently, the amount of waste and by-products used in the cement industry in Japan is equivalent to about 10% of the total amount of materials recycled in Japan. Key Player in the Formation of a Circular Economy Supply critical materials for national resilience Key player in the formation of a circular economy Our group uses waste and by- products generated in local communities and other industries as raw materials and fuel to produce cement with a recycling rate of over 40%. Utilization of waste and by-products • Coal ash • Blast furnace slag • Various industrial waste • Construction soil • Municipal waste • Incineration residues • Household water and sewage sludge etc. Uses in the development of social infrastructure and the living environment • Roads • Railways • Ports and harbors • Bridges • Tunnels • Housing • Schools • Hospitals • Commercial buildings • Dams • Levees • Seawalls • Underground facilities and more The Taiheiyo Cement Group will continue to fulfill its role as a supplier of critical materials for national resilience and as a key player in the formation of a circular economy, while progressing with the steady transition to carbon neutrality. 35
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2025©TAIHEIYO CEMENT Carbon Neutral Strategy: Road Map 36 2024 2026 2030 2050 Progressive Approach —Deepening of existing technologies & lateral development of new technologies— Immediate Approach —Maximum utilization of existing technologies— ➢ Accelerate shift to blended cement ➢ Improve procurement systems for blended materials ➢ Promote alternatives to fossil fuels Application of proprietary technologies and development of new technologies e.g., ground improvement material, world’s strongest concrete, etc. Measures against intensifying disasters Measures for carbon neutral ➢ New standardization of blended cement (expansion of use) ➢ Gas firing (methane, hydrogen, etc.) ➢ Low-CO2 cement (CARBOFIX®) ➢ Development of new grinding aid ➢ CO2 mineralization (CARBOCATCH®) ➢ CO2 capture (C2SP Kiln®) ➢ CCU (methanation, etc.) ➢ CCS (purification and shipping technology) Innovative Approach — World-leading technology development— Carbon Neutral Reduce by at least 20% specific net CO 2 emissions per tonne (compared to 2000) CN model business Cooperate with Zero Carbon Island Concept of Yakushima Town Realize a “CN Model Plant” at DC CO., LTD. Existing technologies: CO2 reduction Existing technologies: CO2 absorption Development of innovative technologies Initiatives to achieve carbon neutrality in the entire supply chain by 2050
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2025©TAIHEIYO CEMENT External Evaluation 37 FTSE Blossom Japan Sector Relative Index Morningstar Japan ex-REIT Gender Diversity Tilt Index （GenDi J） MSCI Nihonkabu ESG Select Leaders Index Dow Jones Sustainability Asia Pacific Index S&P/JPX Carbon Efficient Index CDP ［Scored B for climate change, B for water］ ［Selected as Supplier Engagement Leader］ JCR ［Acquired A+ in 2024］ R&I ［Acquired A in 2024］ Platinum “Kurumin” certification ［Acquired in August 2023］ Health & Productivity Management Outstanding Organization ［Consecutive since 2023］ Human Capital Management Quality 2023 ［Selected as the silver in February 2024］ DBJ Environmental Rating ［The Highest Rating for the nine consecutive year］
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2025©TAIHEIYO CEMENT List of major News Releases 38 Jul.16,2025 Taiheiyo Cement has been selected as the "Supplier Engagement Leader", the highest rating in the "Supplier Engagement Rating" by CDP for the second consecutive year Aug.4,2025 Launch of Japan's First AI-Powered Ship Allocation Optimization System in the Cement Industry Aug.4,2025 Taiheiyo Cement Corporation and Kyuden Mirai Energy Corporation have signed an Off-Site Power Purchase Agreement ("PPA") Aug.8,2025 Notice Concerning Commencement of Tender Offer for Shares of Pacific Systems Corporation (Securities Code: 3847) Aug.19,2025 Received an Order for Core Equipment Renovation Work and Operation Project for the Ecocement Facility Sep.8,2025 Nacode Corporation Commences Solar Panel Recycling Business Sep.29,2025 Announcement of the Publication of "Taiheiyo Cement Report 2025" (Integrated Report) Oct.28,2025 Notice Regarding Acquisition of Ready-Mixed Concrete Business Assets from Vulcan Materials Company Oct.29,2025 Decision to Install Facilities such as EV Quick Chargers in Yakushima Town Oct.29,2025 Adoption of Volcanic Sediment “SHIRASU” from Kagoshima Prefecture for Private Construction in Yakushima Town Nov.11,2025 Notice Regarding Disposal of Treasury Shares as Restricted Stock Incentives for the Employee Shareholding Association
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2025©TAIHEIYO CEMENT 39 This document is a translation of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail. Forecasts and other forward-looking statements in this document are based on information available to Taiheiyo Cement as of the date of the release of this document and on certain assumptions Taiheiyo Cement deems reasonable, and therefore are subject to risks and uncertainties. As such, Taiheiyo Cement does not offer any promise or guarantee that forecasts included in this document will be realized in the future. Actual results may differ significantly due to a variety of factors. Disclaimer