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Reference Materials of Financial Results for the Three Months Ended June 30 , 2026 TAIHEIYO CEMENT August 6 , 2026 TAIHEIYO CEMENT CORPORATION
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2026©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: 12,626 Non-consolidated: 1,783 (not including seconded staff) Subsidiaries 197 (including 128 consolidated subsidiaries and 5 equity-method non-consolidated subsidiaries) Affiliates 103 (including 36 equity-method affiliates) （ as of March 31, 2026 ） 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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2026©TAIHEIYO CEMENT ◆ Cement plant ◇ Clinker grinding plant △ Distribution terminal [Domestic Plants] Kamiiso (Hokkaido Prefecture) Ofunato (Iwate Prefecture) Kumagaya (Saitama Prefecture) Saitama (Saitama Prefecture) Fujiwara (Mie Prefecture) Oita (Oita Prefecture) [Group Production Plants] DC Co., Ltd. (Kanagawa Prefecture) Myojo Cement Co., Ltd. (Niigata Prefecture) Tsuruga Cement Co., Ltd. (Fukui Prefecture) United States Net sales 279,261million yen Clinker production capacity 5,280thousand tonnes Asia-Pacific Net sales 75,514million yen Clinker production capacity 5,520thousand tonnes Japan Net sales 543,667million yen Clinker production capacity 17,058thousand tonnes (as of March 31, 2026) Market Area Redding◆ ◆◆Oro Grande ◆Rillito ●TAIHEIYO CEMENT HEADQUARTERS ◆Cebu ◆Nghi Son ◇Lae ◆ ◆ ◆◆◆◆◆◆◆ △Hong Kong △Nha Trang Ho Chi Minh△ △Taichung Kaohsiung△ △Singapore △Seattle △Portland △Stockton Mojave Las Vegas △ Los Angeles△ San Diego△ △Anchorage 3
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2026©TAIHEIYO CEMENT Contents 4 1．Highlights of Consolidated Financial Results P .5 2．Financial Results for the Fiscal 2026 P .8 (1)Consolidated Segment Information P .9 (2)Consolidated Statements of Income P .13 (3)Consolidated Balance Sheets P .14 3．Forecast for the Fiscal 2027 P .15 (1)Consolidated Statements of Income P .17 (2)Consolidated Segment Information P .18 4．Shareholder Returns P .23 Appendix P .25
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2026©TAIHEIYO CEMENT 1． Highlights of Consolidated Financial Results 5
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2026©TAIHEIYO CEMENT 1．Highlights of Consolidated Financial Results 《Summary of Financial Results》 ➢ In domestic cement, operating profit increased due to the full-year contribution of price hikes and improved earnings at subsidiaries. ➢ Operating profit increased at overseas subsidiaries, etc. ➢ The Group achieved increases in both revenue and profit. 6 FY2026 Q1 FY2027 Q1 Change Net sales 211,191 221,919 +10,728 Operating profit 10,061 11,462 +1,402 Ordinary profit 9,994 12,309 +2,315 Profit attributable to owners of parent 6,822 8,346 +1,524 (Million yen）
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2026©TAIHEIYO CEMENT 1．Highlights of Consolidated Financial Results 《Main Indicators》 《Environmental Factors》 7 End of Mar. 2026 End of Jun. 2026 Change Net assets per share (Yen) 6,098.1 6,186.0 +87.9 Capital adequacy ratio (%) 46.0 42.4 (3.6) Net debt/equity ratio (Times) 0.48 0.54 +0.06 FY2026 Q1 FY2027 Q1 Change Average exchange rate (Yen/US$) 152.6 157.0 +4.4 Average procurement price of imported coal, etc. for domestic (C&F $/t) 140 145 +5 FY2026 Q1 FY2027 Q1 Change Operating profit to net sales ratio (%) 4.8 5.2 +0.4 Basic earnings per share (Yen) 61.2 75.7 +14.5
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2026©TAIHEIYO CEMENT 2．Financial Results for the Fiscal 2026 Q1 8
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2026©TAIHEIYO CEMENT 2．Financial Results for the Fiscal 2026 Q1 9 (1) Consolidated Segment Information FY2026 Q1 FY2027 Q1 Change FY2026 Q1 FY2027 Q1 Change Cement Business Domestic 78,830 82,664 +3,835 3,117 3,892 +775 Overseas Subsidiaries, etc. 77,407 81,119 +3,712 1,328 2,083 +755 Total 156,237 163,784 +7,547 4,446 5,975 +1,529 22,500 23,096 +597 2,531 2,731 +199 19,059 20,815 +1,755 1,988 1,872 (116) 10,431 10,092 (340) 366 88 (279) 17,563 19,147 +1,584 743 834 +92 225,790 236,933 +11,143 10,074 11,500 +1,426 (14,599) (15,015) (416) (13) (38) (24) 211,191 221,919 +10,728 10,061 11,462 +1,402 (Million yen) Net sales Operating profit Mineral Resources Business Environmental Business Construction Materials Business Other Total Consolidated Total Elimination
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2026©TAIHEIYO CEMENT 31 0 21 3 -15 18 39 -4 -15 FY2026 Q1 Volume difference in domestic Volume difference in export Price difference in domestic Price difference in export Variable cost Fixed cost Ready-mixed concrete, etc. FY2027 Q1 2．Financial Results for the Fiscal 2026 Q1 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. Our cement sales volume also declined. ➢ Operating profit increased due to the full-year contribution of selling price increases for cement and soil stabilizers, as well as improved earnings at subsidiaries, despite the decrease in sales volume. 10 Operating Profit (Hundred million yen) FY2026 Q1 FY2027 Q1 Change Sales volume (Thousand t) Domestic 2,803 2,611 (192) Export 891 929 +38 Net sales (Million yen) 78,830 82,664 +3,835 Operating profit (Million yen) 3,117 3,892 +775 Net Sales (Hundred million yen) 788 -26 2 23 11 29 827 FY2026 Q1 Volume difference in domestic Volume difference in export Price difference in domestic Price difference in export Ready-mixed concrete, etc. FY2027 Q1
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2026©TAIHEIYO CEMENT 2．Financial Results for the Fiscal 2026 Q1 ②Overseas Subsidiaries, etc. ➢ Demand was affected by bad weather conditions and the slowdown in the private sector, etc. as interest rates remained high. ➢ Sales volumes of cement and ready-mixed concrete remained flat year on year. Despite efforts to implement price increases and cost reductions, profit decreased slightly. 《U.S.A.》 ➢ Vietnam: Revenue and profit increased, supported by robust domestic demand. ➢ Philippines: Despite a challenging competitive environment, initiatives to improve earnings are ongoing through higher sales volumes and cost reductions. 11 FY2026 Q1 FY2027 Q1 Change 1,334 1,299 (35) 1,137 1,173 +35 2,922 2,747 (174) (Hundred million yen) 657 680 +24 (Million $) 430 433 +3 (Hundred million yen) 27 25 (2) (Million $) 18 16 (2) 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: +19 hundred million yen, Operating profit: +1 hundred million yen Cement (Thousand t) 1,714 1,790 +76 Net sales (Hundred million yen) 132 141 +9 Operating profit (Hundred million yen) (10) 1 +11 FY2026 Q1 FY2027 Q1 Change
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2026©TAIHEIYO CEMENT 2．Financial Results for the Fiscal 2026 Q1 ③Mineral Resources, Environmental, Construction Materials and Other Business 12 FY2026 Q1 FY2027 Q1 Change Main Factors of Changes in Net Sales and Operating Profit( Net Change) Net sales 22,500 23,096 +597 Operating profit 2,531 2,731 +199 Net sales 19,059 20,815 +1,755 Operating profit 1,988 1,872 (116) Net sales 10,431 10,092 (340) Operating profit 366 88 (279) Net sales 17,563 19,147 +1,584 Operating profit 743 834 +92 (Million yen) Mineral Resources Business Environmental Business Construction Materials Business Other While operations of intermediary storage and port relay of coal and sludge treatment were sluggish, operations of intermediary storage and port relay of soil generated from the Linear Chuo Shinkansen construction and coal ash treatment remained strong. Affected by various cost increases including shipping and labor costs, in addition to sluggish sales of ALC (Autoclaved Lightweight aerated Concrete) as well as construction and civil engineering materials. While coal ash treatment and the treatment of raw material-related waste performed firmly, there was a decline in the volume of operations of intermediary storage of soil generated from the Linear Chuo Shinkansen construction due to the impact of construction plans.
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2026©TAIHEIYO CEMENT 2．Financial Results for the Fiscal 2026 Q1 13 (2)Consolidated Statements of Income FY2026 Q1 FY2027 Q1 Change Net sales 211,191 221,919 +10,728 Operating profit 10,061 11,462 +1,402 Non-operating income and expenses (67) 847 +913 Ordinary profit 9,994 12,309 +2,315 Extraordinary income and losses (402) 102 +504 Profit before income taxes 9,592 12,411 +2,819 Income taxes 2,384 3,481 +1,098 Profit attributable to non-controlling interests 387 584 +197 Profit attributable to owners of parent 6,822 8,346 +1,524 (Million yen)
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2026©TAIHEIYO CEMENT 2．Financial Results for the Fiscal 2026 Q1 (3)Consolidated Balance Sheets 14 End of Mar. 2026 End of Jun. 2026 Change End of Mar. 2026 End of Jun. 2026 Change Cash and deposits 63,719 158,907 +95,188 416,902 535,766 +118,864 Notes and accounts receivable - trade, and contract assets 186,473 189,929 +3,456 349,922 347,750 (2,173) Inventories 137,238 144,334 +7,096 766,824 883,515 +116,691 Other 25,171 23,830 (1,341) Share capital 86,174 86,174 ー Total current assets 412,601 517,000 +104,399 Capital surplus 49,493 49,509 +15 Total property, plant and equipment 749,158 762,288 +13,130 Retained earnings 432,913 435,712 +2,800 Total intangible assets 43,516 43,587 +71 Treasury shares (21,516) (31,514) (9,998) Total investments and other assets 273,787 267,132 (6,655) Total shareholders' equity 547,064 539,881 (7,183) 133,505 134,170 +665 31,668 32,441 +772 Total non-current assets 1,066,461 1,073,007 +6,546 712,237 706,491 (5,746) 1,479,061 1,590,007 +110,945 1,479,061 1,590,007 +110,945 End of Dec. 2025 End of Mar. 2026 Change End of Mar. 2026 End of Jun. 2026 Change 156.6 159.9 +3.3 389,767 520,393 +130,626 (Million yen) Current liabilities Non-current liabilities Liabilities Current assets Shareholders' equity Non-current assets Net assets 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
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2026©TAIHEIYO CEMENT 3．Forecast for the Fiscal 2027 15
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2026©TAIHEIYO CEMENT 3．Forecast for the Fiscal 2027 《Summary for the Forecast》 ➢ The impact of the situation in the Middle East is assumed to persist throughout the fiscal year. ➢ Reflecting the gain on sale of fixed asset announced on July 21, we expect a year-on-year increase in sales and profit. ➢ In the domestic cement business, higher sales but lower profit are expected due to higher fixed costs, although sales volume is expected to increase by reflecting the impact of the transfer of business rights from Tokuyama Corporation from the second half. ➢ In Overseas Subsidiaries, etc., sales and profit are expected to increase due to the acquisition effects in the U.S. from the second half and improved performance in the Philippines. 16 《Precondition》 ➢ The precondition for the FY 2027 forecast is as follows. FY2026 Actual FY2027 Forecast Change Domestic cement demand (Ten thousand t) 3,053 2,900 (153) Average procurement price of imported coal, etc. for domestic (C&F $/t） 130 155 +25 Average exchange rate (Yen/US$) 149.6 157.0 +7.4 (Sensitivity: Impact on operating profit)30 million yen positive impact by 1 yen drop in foreign exchange (Unchanged from published forecast on July 21, 2026)
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2026©TAIHEIYO CEMENT 17 (1) Consolidated Statements of Income 3．Forecast for the Fiscal 2027 FY2026 Actual FY2027 Forecast Change Net sales 8,984 10,270 +1,286 Operating profit 746 760 +14 Non-operating income and expenses 5 (60) (65) Ordinary profit 751 700 (51) Extraordinary income and losses (306) 135 +441 Profit before income taxes 445 835 +390 Income taxes 176 190 +14 Profit attributable to non-controlling interests 15 15 +0 Profit attributable to owners of parent 254 630 +376 (Hundred million yen) (Unchanged from published forecast on July 21, 2026)
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2026©TAIHEIYO CEMENT 18 (2) Consolidated Segment Information 3．Forecast for the Fiscal 2027 FY2026 Actual FY2027 Forecast Change FY2026 Actual FY2027 Forecast Change Cement Business Domestic 3,367 3,680 +313 280 170 (110) Overseas Subsidiaries, etc. 3,312 3,970 +658 214 317 +103 Total 6,679 7,650 +971 493 487 (6) 909 960 +51 100 106 +6 818 920 +102 93 104 +11 434 470 +36 19 19 +0 805 970 +165 42 46 +4 9,645 10,970 +1,325 747 762 +15 (661) (700) (39) (1) (2) (1) 8,984 10,270 +1,286 746 760 +14 Net sales Operating profit (Hundred million yen) Mineral Resources Business Environmental Business Construction Materials Business Other Total Elimination Consolidated Total (Unchanged from published forecast on May 12, 2026)
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2026©TAIHEIYO CEMENT 3,367 164 30 38 0 81 3,680 FY2026 Actual Volume difference in domestic Volume difference in export Price difference in domestic Price difference in export Ready-mixed concrete, etc. FY2027 Forecast 280 14 7 39 -10 -40 -102 -18 170 FY2026 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. FY2027 Forecast ①Domestic Cement Business ➢ While new demand such as national defense-related construction projects and reconstruction demand in Noto is expected, domestic demand is expected to decline due to rising labor and material costs and the further expansion of the two- day weekend system among ready-mixed concrete cooperatives. ➢ While we expect an increase in volume due to the transfer of business rights from Tokuyama Corporation, operating profit is expected to decrease because of cost increases driven by the situation in the Middle East and higher fixed costs. 19 Net Sales (Hundred million yen) Operating Profit (Hundred million yen) 3．Forecast for the Fiscal 2027 FY2026 Actual FY2027 Forecast Change Sales volume (Thousand t) Domestic 11,173 11,800 +627 Export 3,320 3,800 +480 Net sales (Hundred million yen) 3,367 3,680 +313 Operating profit (Hundred million yen) 280 170 (110) (Unchanged from published forecast on May 12, 2026)
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2026©TAIHEIYO CEMENT 20 Cement business (sales) Newly established shell company • We will acquire the cement sales business within the cement business operated by Tokuyama • The target business will be carved out to a shell company, and we will acquire the shares of the shell company from Tokuyama Cement manufacturing plantCarve-out (absorption-type company split) Cement business (sales) Tokuyama Tsusho Trading (distributor) Tokuyama Mtech (secondary products, etc.) Structure for acquiring business rights Tokuyama Tsusho Trading (distributor) Tokuyama Mtech (secondary products, etc.) Tokuyama Acquisition of Tokuyama’s cement business rights: Steady execution of domestic growth investments 《Appendix》 Acquisition of Tokuyama’s cement business rights June 25, 2026 Received notice from the Japan Fair Trade Commission that no cease-and-desist order would be issued (Clearance obtained) October 1, 2026 Proceeding toward closing
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2026©TAIHEIYO CEMENT ②Overseas Subsidiaries, etc. ➢ Demand remains uncertain due to persistently high interest rates and geopolitical developments in the Middle East, and a full-scale recovery in demand is expected from FY2028 onward. ➢ Sales volumes of cement and aggregates are expected to be in line with the previous fiscal year, and we will continue efforts to implement price increases and cost reductions. ➢ In the ready-mixed concrete business, higher sales and profit are expected, as sales volume increases from the second half reflecting the impact of acquisitions. 21 《U.S.A.》 ➢ Vietnam: In addition to higher domestic sales volume backed by robust domestic demand, we will work to pass through price increases to offset cost increases, including those driven by the situation in the Middle East. ➢ Philippines: Earnings are expected to improve, supported by initiatives to raise sales prices and reduce costs, as well as lower depreciation expenses. We will also continue initiatives to pass through price increases to address cost increases driven by the situation in the Middle East. 3．Forecast for the Fiscal 2027 《Asia and others》 (Simple sum of consolidated subsidiaries) *The impact of foreign exchange fluctuations on changes in overseas subsidiaries is as follows. Net sales: +178 hundred million yen, Operating profit: +16 hundred million yen 5,888 5,937 +49 4,722 6,401 +1,679 12,246 12,187 (59) (Hundred million yen) 2,825 3,403 +578 (Million $) 1,888 2,168 +279 (Hundred million yen) 267 326 +60 (Million $) 178 208 +30 FY2026 Actual FY2027 Forecast Change Cement (Thousand t) Ready-mixed concrete (Thousand cy) Net sales Operating profit Aggregates (Thousand t) Cement (Thousand t) 7,289 7,674 +385 Net sales (Hundred million yen) 549 600 +51 Operating profit (Hundred million yen) (37) 10 +47 FY2026 Actual FY2027 Forecast Change (Unchanged from published forecast on May 12, 2026)
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2026©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. 2026 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 Acquisition completed on June 5, 2026 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 the relevant business segment 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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2026©TAIHEIYO CEMENT 4．Shareholder Returns 23
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2026©TAIHEIYO CEMENT 4. Shareholder Returns ➢ In fiscal 2026, we paid 100 yen/share(including interim dividends of 50 yen/share) , an increase of 20 yen/share.. ➢ In fiscal 2027, we plan to increase by 20 yen to 120 yen/share (including interim dividends of 60 yen/share). ➢ The total shareholder return ratio over the three years of the 26 MTP is expected to be 40.0%. 《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 ＜Total shareholder return＞ ＜Dividends＞ 35 35 35 40 50 60 35 35 35 40 50 6070 70 70 80 100 120 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Forecast Interim dividends Year-end dividends FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Forecast Share buyback 50 0 50 150 0 100 Total dividend amount 82 82 82 91 112 133 Total return ratio 45.6% 30.5% 42.0% 44.1% 36.9% 45.6% 30.5% 42.0% 44.1% 36.9% 50 150 250 Total dividend amount Share buyback Total return ratio （Yen） （Hundred million Yen）
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2026©TAIHEIYO CEMENT Appendix 25
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2026©TAIHEIYO CEMENT Financial Results for the Fiscal 2027 1Q Consolidated Statements of Cash Flows 26 FY2026 Q1 FY2027 Q1 Change Cash flows from operating activities* 16,944 9,020 (7,925) Cash flows from investing activities (25,490) (24,738) +752 Free cash flows (8,546) (15,718) (7,173) Cash flows from financing activities 9,182 111,717 +102,535 *Depreciation and amortization included 16,664 16,993 +328 (Million yen) This material has been prepared as reference information.
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2026©TAIHEIYO CEMENT 211 197 277 270 178 208 16 86 114 121 121 145 168 35 297 311 398 391 323 376 51 FY22 FY23 FY24 FY25 FY26 FY27 Forecast FY27 Q1 Operating Profit Depreciation and amortization Transition Data (1)Sales Volume of Cement in Overseas Subsidiaries (Simple sum of consolidated subsidiaries) (2)Overview of Business in the U.S.A. (Ten thousand t) 27 (Million US$)Operating Profit, EBITDA Net sales (Million US$) 632 669 683 612 589 594 130 705 643 671 667 729 767 179 268 179 FY22 FY23 FY24 FY25 FY26 FY27 Forecast FY27 Q1 U.S.A Asia and other China 1,491 1,756 2,020 1,962 1,888 2,168 433 FY22 FY23 FY24 FY25 FY26 FY27 Forecast FY27 Q1
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2026©TAIHEIYO CEMENT Forecast for the First Half of Fiscal 2027 28 (1)Consolidated Statements of Income FY2026 Q2 Actual FY2027 Q2 Forecast Change Net sales 4,381 4,700 +319 Operating profit 329 270 (59) Ordinary profit 329 255 (74) Profit attributable to owners of parent 245 340 +95 (Hundred million yen) (Unchanged from published forecast on July 21, 2026)
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2026©TAIHEIYO CEMENT Forecast for the First Half of Fiscal 2027 29 (2) Consolidated Segment Information FY2026 Q2 Actual FY2027 Q2 Forecast Change FY2026 Q2 Actual FY2027 Q2 Forecast Change Cement Business Domestic 1,626 1,700 +74 113 52 (61) Overseas Subsidiaries, etc. 1,641 1,750 +109 99 110 +11 Total 3,267 3,450 +183 212 162 (50) 453 480 +27 52 51 (1) 399 440 +41 45 47 +2 215 230 +15 9 7 (2) 355 430 +75 11 4 (7) 4,689 5,030 +341 329 271 (58) (307) (330) (23) (1) (1) (0) 4,381 4,700 +319 329 270 (59) Environmental Business (Hundred million yen) Net sales Operating profit Mineral Resources Business Construction Materials Business Other Total Elimination Consolidated Total (Unchanged from published forecast on May 12, 2026)
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2026©TAIHEIYO CEMENT 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 2,125 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 3,053 959 1,002 1,067 1,105 997 1,001 963 850 942 1,058 1,153 1,181 1,037 1,053 1,111 1,148 814 686 821 879 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 《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 30 Amount of waste, etc. utilized Domestic cement demand Cement exports
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2026©TAIHEIYO CEMENT Sale of shareholdings 31 Sale of shareholdings 26 Medium-Term Management Plan period Domestic listed shares Scheduled to execute sales equivalent to approx. 50%* in total Scheduled to execute sales equivalent to approx. 20%* * Based on book value as of March 31, 2025 Next Medium-Term Management Plan period Domestic listed shares 【Results through FY2027 Q1】 Partial sale of shares in A&A Material and other holdings. Approx. 7% executed out of the approx. 20% planned for the FY26 MTP period. FY25 FY26 FY27 Q1 26 Plan Mid- Term Plan Next Mid- Term Plan ▲50％▲20％▲6％ ▲7％
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2026©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. 32
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2026©TAIHEIYO CEMENT Appendix Carbon Neutral Strategy Draft Roadmap Progressive Approach — Deepening of existing technologies & lateral development of new technologies — Immediate Approach — Maximum utilization of existing technologies — ➢Accelerate shift to blended cement ➢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) ➢Development of new grinding aid ➢CCU (methanation) ➢CCU (carbonation) ➢CCS (purification and shipping technology) Innovative Approach — World-leading technology development — Carbon Neutral CN model business Cooperate with Zero Carbon Island Concept of Y akushima T own Realize a “CN Model Plant” at DC CO., LTD. Existing technologies: CO2 reduction Development of innovative technologies Early development of derivative technologies ➢Methane firing ➢Oxygen-enriched combustion Overseas ➢Improve procurement systems for blended materials Immediate Approach — Maximum utilization of existing technologies — Existing technologies: CO2 absorption Reduce by at least 20% specific net CO 2 emissions per tonne (compared to 2000) 33 2026 2030 2050
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2026©TAIHEIYO CEMENT External Evaluation 34 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 2025］ R&I ［Acquired A in 2025］ 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］
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2026©TAIHEIYO CEMENT List of major News Releases 35 May 12, 2026 Price revision of cement and cement-based soil stabilizers May 12, 2026 Notice Regarding Acquisition of Own Shares and Acquisition of Own Shares through the Off-Auction Own Share Repurchase Trading System (ToSTNeT-3) May 13, 2026 Notice on the Decision of Terms of the 1st Issuance of Stock Acquisition Right via Third-Party Allotment for Acquisition of Own Shares via Fully Committed Share Repurchase (Japanese ASR) May 18, 2026 Taiheiyo Cement Selected for the Dow Jones Best-in-Class Asia Pacific Index May 19, 2026 Notice Regarding Changes of Executives Jun. 8, 2026 Completion of Acquisition of Ready-Mixed Concrete Business Assets from Vulcan Materials Company Jun. 16, 2026 Taiheiyo Cement has been selected as the "Supplier Engagement Leader", the highest rating in the "Supplier Engagement Rating" by CDP for the third consecutive year Jun. 16, 2026 Indonesian Alliance Commences Cement Exports to the U.S. Jul. 21, 2026 Notice Regarding the Recording of Extraordinary Gain from the Transfer of Fixed Assets and Revision of Financial Forecasts Jul. 31, 2026 Taiheiyo Cement Selected for the First Time as a Constituent of the Nikkei Moat Stock Index
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2026©TAIHEIYO CEMENT 36 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