Interim report
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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. November 2, 2026 CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd FFFFFiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll RRRRReeeeesssssuuuuullllltttttsssss fffffooooorrrrr ttttthhhhheeeee SSSSSiiiiixxxxx MMMMMooooonnnnnttttthhhhhsssss EEEEEnnnnndddddeeeeeddddd SSSSSeeeeepppppttttteeeeemmmmmbbbbbeeeeerrrrr 3333300000,,,,, 22222000002222266666 (((((UUUUUnnnnndddddeeeeerrrrr JJJJJaaaaapppppaaaaannnnneeeeessssseeeee GGGGGAAAAAAAAAAPPPPP))))) Company name: YAMATO KOGYO CO., LTD. Listing: Tokyo Stock Exchange Securities code: 5444 URL: https://www.yamatokogyo.co.jp Representative: Mikio Kobayashi President Inquiries: Akihiko Hanamoto Managing Executive Officer Telephone: +81-79-273-1061 Scheduled date to file semi-annual securities report: November 13, 2026 Scheduled date to commence dividend payments: December 3, 2026 Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (Yen amounts are rounded down to millions, unless otherwise noted.) 11111..... CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd fffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll rrrrreeeeesssssuuuuullllltttttsssss fffffooooorrrrr ttttthhhhheeeee sssssiiiiixxxxx mmmmmooooonnnnnttttthhhhhsssss eeeeennnnndddddeeeeeddddd SSSSSeeeeepppppttttteeeeemmmmmbbbbbeeeeerrrrr 3333300000,,,,, 22222000002222266666 (((((fffffrrrrrooooommmmm AAAAAppppprrrrriiiiilllll 11111,,,,, 22222000002222266666 tttttooooo SSSSSeeeeepppppttttteeeeemmmmmbbbbbeeeeerrrrr 3333300000,,,,, 22222000002222266666))))) (((((11111))))) CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd ooooopppppeeeeerrrrraaaaatttttiiiiinnnnnggggg rrrrreeeeesssssuuuuullllltttttsssss (((((cccccuuuuummmmmuuuuulllllaaaaatttttiiiiivvvvveeeee))))) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2026 84,046 10.3 224 (88.7) 46,071 65.0 27,556 44.0 September 30, 2025 76,180 (2.8) 1,994 (53.6) 27,928 (32.2) 19,133 (32.3) Note: Comprehensive income For the six months ended September 30, 2026: ¥ 37,374 million [ -%] For the six months ended September 30, 2025: ¥ (11,162) million [ -%] Basic earnings per share Diluted earnings per share Six months ended Yen Yen September 30, 2026 461.17 - September 30, 2025 310.82 - (((((22222))))) CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd fffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll pppppooooosssssiiiiitttttiiiiiooooonnnnn Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % September 30, 2026 667,777 606,584 84.8 March 31, 2026 633,540 581,417 85.5 Reference: Equity As of September 30, 2026: ¥ 566,608 million As of March 31, 2026: ¥ 541,745 million 22222..... CCCCCaaaaassssshhhhh dddddiiiiivvvvviiiiidddddeeeeennnnndddddsssss Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended - 200.00 - 200.00 400.00March 31, 2026 Fiscal year ending - 210.00March 31, 2027 Fiscal year ending March 31, 2027 (Forecast) - 210.00 420.00 Note: Revisions to the forecast of cash dividends most recently announced: Yes
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33333..... CCCCCooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd fffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll rrrrreeeeesssssuuuuulllllttttt fffffooooorrrrreeeeecccccaaaaassssstttttsssss fffffooooorrrrr ttttthhhhheeeee fffffiiiiissssscccccaaaaalllll yyyyyeeeeeaaaaarrrrr eeeeennnnndddddiiiiinnnnnggggg MMMMMaaaaarrrrrccccchhhhh 3333311111,,,,, 22222000002222277777 (((((fffffrrrrrooooommmmm AAAAAppppprrrrriiiiilllll 11111,,,,, 22222000002222266666 tttttooooo MMMMMaaaaarrrrrccccchhhhh 3333311111,,,,, 22222000002222277777))))) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 180,000 12.2 2,200 (51.1) 95,500 46.4 62,000 (0.6) 1,037.59 Note: Revisions to the financial result forecast most recently announced: Yes ***** NNNNNooooottttteeeeesssss (1) Significant changes in the scope of consolidation during the period: None Newly included: - companies( ) Excluded: - companies( ) (2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: Yes (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of September 30, 2026 62,000,000 shares As of March 31, 2026 62,000,000 shares (ii) Number of treasury shares at the end of the period As of September 30, 2026 2,246,091 shares As of March 31, 2026 2,247,590 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six months ended September 30, 2026 59,753,178 shares Six months ended September 30, 2025 61,557,767 shares * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other special matters The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Group and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Group. Actual business and other results may differ substantially due to various factors. Please refer to 1. Qualitative Information on Semi-annual Results, (3) Overview of Consolidated Earnings Forecasts and Other Forward-Looking Statements on page 5 of the attached materials for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof.
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Appendix Table of Contents 1. Qualitative Information on Semi-annual Results ................................................................................... 2 (1) Overview of Operating Results ......................................................................................................... 2 (2) Overview of Financial Position ........................................................................................................ 3 (3) Overview of Consolidated Earnings Forecasts and Other Forward-Looking Statements ................ 5 2. Semi-annual Consolidated Financial Statements and Primary Notes .................................................... 8 (1) Semi-annual Consolidated Balance Sheet .................................................................................... .... 8 (2) Semi-annual Consolidated Statements of Income and Comprehensive Income ............................. 10 (3) Semi-annual Consolidated Statement of Cash Flows ..................................................................... 12 (4) Notes to Semi-annual Consolidated Financial Statements ............................................................. 13 (Notes on Going Concern Assumptions) ........................................................................................... 13 (Notes on Significant Changes in the Amount of Shareholders’ Equity) .......................................... 13 (Application of Special Accounting Treatment for the Preparation of Semi-annual Consolidated Financial Statements) ........................................................................................................................ 13 (Additional Information) ................................................................................................................... 13 (Segment Information, etc.) .............................................................................................................. 14 (Significant Subsequent Events) ....................................................................................................... 14 YAMATO KOGYO CO., LTD. - 1 -
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1. Qualitative Information on Semi-annual Results (1) Overview of Operating Results During the six months ended September 30, 2026, the Group continued to face a generally challenging competitive environment across the ASEAN region. Signs of recovery were seen in th e market for structural steel in Thailand, where tariffs on steel products from China were raised in November of last year, but exports of low-priced steel products from China continued. In Japan, demand also remained sluggish. Overall, steel demand and market conditions did not show substantial improvement in Japan or the ASEAN region, where the Group has consolidated subsidiaries. Meanwhile, steel market prices in the U.S. business continued to rise against a backdrop of solid demand. The U.S. business continued to maintain a high level of profitability and drive the Group's consolidated performance. The conditions at each business location are outlined below. In Japan, the business environment remained challenging, as the recovery in construction demand continued to take time and improvement in the market for structur al steel remained limited. At Yamato Steel Co., Ltd., despite efforts to pass on further in creases in energy costs and other expe nses through higher selling prices, Yamato Steel was unable to fully offset the rising costs. In addition, Yamato Steel suspended operations for two months in May and June to ca rry out preliminary work for the rolling mill renewal, resulting in a significant year-on-year decline in both sales and profit. As a result, net sales in the St eel (Japan) segment decreased by ¥5, 688 million year on year to ¥20,680 million, and segment profit (operating profit) decreased by ¥4,456 million year on year to a segment loss of ¥3,018 million. The Group's consolidated results for the current semi -annual period reflect the results for January throug h June 2026 of its consolidated subs idiaries in Thailand and Indonesia a nd its equity-method affiliates in the United States, Vietnam, and South Korea. At Siam Yamato Steel Co., Ltd. (SYS), a consolidated subsidiary in Thailand, demand for structural steel remained solid, supported by private-sector projects such as data centers and electronics factories, as well as public infrastructure projects. Since anti-dumping duties on Chinese H-beams took effect in November of last year, imports of the products subject to these duties declined. Against this backdrop, the business environment in Thailand showed signs of improvement, with sal es volume increasing year on year. Although intense competition with Chinese steel products continued in export markets, mainly in the ASEAN region, SYS recorded year-on-year increases in both sales and profit. As a result, net sales in the Steel (Thailand) segment increased by ¥8,521 million year on year to ¥40,526 million, and segment profit (operating profit) increased by ¥2,540 million year on year to ¥4,088 million. At PT Garuda Yamato Steel (GYS), a consolidated subsidiary in Indonesia, sales volume increased year on year despite continued constraints on infrastructure investment budgets. This increase was driven by the resumption of previously stalled government and private-sector projects, as well as a surge in demand ahead of anticipated increases in material prices due to the situation in the Middle East. Although GYS recorded increases in both sales and profit compared with the same period of the previous year, when demand had declined significantly, the market environment remained challenging. Selling prices continued to decline due to the influx of low-priced Chinese steel products and intensifying competition with local manufacturers, and market conditions had yet to improve. As a result, net sales in the Steel (Indonesia) segment increased by ¥5,097 million year on year to ¥16,137 million, and segment profit (operating profit) increased by ¥761 million year on year to ¥729 million. Segment profit includes ¥91 million in amortization of intangible assets and ¥518 million in amortization of goodwill, both associated with the business combination. YAMATO KOGYO CO., LTD. - 2 -
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At Nucor-Yamato Steel Company (NYS), an equity -method affiliate in the United States, demand for structural steel for large-scale construction projects, particu larly d ata centers, remain ed solid, and NYS maintained a high level o f order backlog . Although high tariffs o n imported steel p roducts remained in place, a certain volume of imports continued to enter the U.S. market against a backdrop of rising structural steel prices. NYS maintained high profitability by focusing on sales of high-v alue-added products. NYS recorded a significant year-on-year increase in profit, mainly due to an improvement in metal margins resultin g from higher selling prices. At POSCO YAMATO VINA STEEL JOINT STOCK COMPANY (PY VINA), an equity-method affiliate in Vietnam, demand for structural steel in Vietnam was on a gradual recovery trend amid solid growth in the Vietnamese economy. However, competition with low-priced imported steel produ cts, including those from China, and sluggish demand in South Korea, a major export destination, limited improvement in PY VINA's earnings. As a result, PY VINA recorded only a small o perating profit, roughly in line with the same period of the previous year. At YK Steel Corporation (YKS), an equity-method affiliate in South Korea, d emand for rebars remained sluggish amid the do wnturn in the construction and real estate in dustries. YKS implemented measures to improve earnings, including strengthening sales to government agencies, and returned to profitability, but the business environment remained challenging. As a result of the above, net sales for the current semi-annual consolidated accounting period increased by ¥7,866 million year on year to ¥84,046 million. Regarding profit, operating profit decreased by ¥1,769 million year on year to ¥224 million, ordinary profit increased by ¥18,143 million year on year to ¥46,071 million, and semi-annual profit attributable to owners of parent increased by ¥8,423 million year on year to ¥27,556 million. With regard to the receivable deriving from the sh are sale of our Middle East business, we recorded an extraordinary loss provision of US$20M (3,146 million ye n) for the early payment discount in the first half of our fiscal year ending in March 2027, subsequent to the confirmation of Foulath’s intention to exercise the early payment option. Subsequently , the early payment was made on Oc tober 5, 2026, and we received US$90M after the deduction of the early payment discount. For details, please refer to Section (4) Notes to Semi-annual Consolidated Financial Statements, “Additional Information”, under Semi-annual Consolidated Financial Statements and Primary Notes. For the first six months of the current fiscal year, the average exchange rates used in preparing the consolidated financial statements based on the financial statements of overseas subsidiaries and affiliates were as follows: (The semi-annual accounting periods of the overseas companies were from January to June 2026.) 158.61 yen/U.S. dollar, 4.92 yen/baht, and 0.0092 yen/Indonesian rupiah For the first six months of the previous fiscal year, the average exchange rates were as follows: (The semi-annual accounting periods of the overseas companies were from January to June 2025.) 147.48 yen/U.S. dollar, 4.42 yen/baht, and 0.0090 yen/Indonesian rupiah (2) Overview of Financial Position (i) Changes in financial position At the end of the second quarter of the current fiscal year, total assets were ¥667,777 million, an increase of ¥34,237 million from the end of the previous fiscal year. Total liabilities were ¥61,193 million, an increase of ¥9,071 million from the end of the previous fiscal year. Net assets were ¥606,584 million, an increase of ¥25, 166 million from the end of the previous fiscal year. The main factors behind this were increases due to profit attributable to owners of parent and in foreign currency translation adjustment resulting from the weakness of the yen, and a decrease caused by dividends paid. YAMATO KOGYO CO., LTD. - 3 -
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At the end of the second quarter of the current fiscal year, the exchange rates used in preparing the consolidated financial statements based on the financial statements of overseas subsidiaries and affiliates and in translating the assets and liabilities of companies in Japan were as follows: (The semi-annual accounting periods of the overseas companies ended in June 2026.) 162.45 yen/U.S. dollar, 4.87 yen/baht, and 0.0091 yen/Indonesian rupiah (The semi-annual accounting periods of the domestic companies ended in September 2026.) 157.33 yen/U.S. dollar The exchange rates at the end of the previous fiscal year were as follows: (The fiscal years of the overseas companies ended in December 2025.) 156.54 yen/U.S. dollar, 4.95 yen/baht, and 0.0093 yen/Indonesian rupiah (The fiscal years of the domestic companies ended in March 2026.) 159.93 yen/U.S. dollar (ii) Cash flows (Cash flows from operating activities) Net cash provided by operating activities was ¥44,983 million, mainly due to semi-annual profit before income taxes and cash distributions from equity-method affiliates in the United States. (Cash flows from investing activities) Net cash provided by investing activities was ¥24,602 million, mainly due to proceeds from withdrawals of time deposits. (Cash flows from financing activities) Net cash used in financing activities was ¥13,079 million, mainly due to dividend payments. After taking into account the ¥2,870 million effect of exchange rate changes on cash and cash equivalents, the Group reported cash and cash equivalents of ¥134,834 million at the end of the current semi-annual consolidated accounting period, an increase of ¥59,376 million from the end of the previous fiscal year. YAMATO KOGYO CO., LTD. - 4 -
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(3) Overview of Consolidated Earnings Forecasts and Other Forward-Looking Statements Regarding the future outlook, the global economic outlook remains uncertain amid ongoing geopolitical risks, including the prolonged instability in the Middle East. In addition, exports of low-priced Chinese steel products are expected to remain at high levels agains t a backdrop of sluggish steel demand in China. Under these circumstances, the business environment surrounding the Group remains generally challenging at its business locations outside the United States. Meanwhile, in the U.S. business, the supply-demand balance has been maintained against a backdrop of resilient demand, and the Group expects the U.S. business to continue generating a high level of profit. At each business location, the Group will strengthen its sales strategies, including measures to address the infl ux of Chinese steel products, and continue its efforts to secure sales volume, maintain and improve metal margins, and reduce costs. Regarding the full-year earnings forecasts, while we have factored in the currently weak earnings performance of the steel business of our Japanese cons olidated subsidiary and the expectation that improvement in profitability will take longer than anticipated, we have also reflected the continued weakness of the yen and the performance of our equity-method affiliate in the U.S., which has continued to exceed our expectations to an even greater extent. Accordingl y, we have revised our full-year earnings forecasts as follows: net sales of ¥180,000 million (up ¥2,000 milli on from the previous forecast), operating profit of ¥2,200 million (down ¥1,000 million), ordinary profit of ¥95,500 million (up ¥8,500 million), and profit attributable to owners of parent of ¥62,000 million (up ¥4,500 million). For details, please refer to the “Notice Concerning Differences Between Consolidated Earnings Forecasts and Actual Results for the Six Months Ended September 30, 2026, and Revisions to the Full Year Earnings Forecasts” announced today. The current assumptions regarding business conditions in each country and region are as follows: Japan (Yamato Steel) Although demand in Japan is expected to recover gradually, particularly for large-scale construction projects, demand for small and medium-sized projects remains sl uggish. In addition, uncertainty over the outlook persists due to the situation in the Middle East. As a result, the recovery in demand is expected to take longer than previously anticipated. The challenging business environment is also expected to persist, with steel scrap prices remaining high against a backdrop of the weak yen and energy costs continuing to rise due to the situation in the Middle East. Amid continued sluggish demand, further time is expected to be required to improve metal margins by passing on higher costs through selling prices. Consequently, Yamato Steel's performance is expected to fall below the previous forecast, with its ope rating loss expected to increase (a decline in profit from the previous fiscal year). Thailand (SYS) Demand for structural steel in Thailand is recove ring, supported by public works projects such as infrastructure development, as well as private-sector cap ital investment, particularly in data centers and electronics-related facilities. Since anti-dumping duties on Chinese H-beams took effect in November of last year, SYS has regained some market share in Thaila nd, and the business environment in Thailand has been improving. However, imports of Chinese steel products not subject to the duties have continued, and the situation continues to warrant caution. Meanwhile, in export markets, SYS expects sales volume to exceed the previous forecast through measures such as expanding exports to markets outside the ASEAN region. SYS expects profit to exceed the previous forecast (an increase in profit from the previous fiscal year). Indonesia (GYS) Although progress on power transmission tower projects has been delayed, sales volume has remained largely in line with the plan, supported by public works projects such as school construction and private-sector capital investment, particularly in oil and gas and da ta center-related facilities. Meanwhile, uncertainty surrounding government policies and the depreciation of the Indonesian rupiah have led to increasingly YAMATO KOGYO CO., LTD. - 5 -
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cautious market sentiment, slowing the recovery in demand. With steel scrap prices expected to remain high in the second half of the fiscal year and beyond, metal margins are expected to fall below the previous forecast due to the influx of low-priced Chinese steel products and intensifying price competition with local manufacturers. GYS expects profit to fall below the prev ious forecast (a decline in profit from the previous fiscal year), but expects to secure a certain level of segment profit after amortization of goodwill. U.S. (NYS) Although uncertainty remains regarding policy deve lopments following the upcoming midterm elections, the U.S. economy is expected to remain resilient, supported by strong demand in the United States, particularly from robust AI-related investment. Demand for structural st eel, particularly for data centers, remains solid, and NYS maintains an order backlog at a record-high le vel. In addition, with hi gh import tariffs on steel products remaining in place, supply and demand conditions in the steel market remain tight against a backdrop of solid demand. Metal margins have exceeded previ ous expectations, driven by higher selling prices and increased sales of high-value-added products, among other factors. NYS expects profit to exceed the previous forecast (an increase in profit from the previous fiscal year). Vietnam (PY VINA) The Vietnamese economy continues to perform well, and demand for structural steel is expected to recover gradually, particularly in connection with public investment projects. Meanwhile, although there are signs that the market for structural steel has bottomed out, intense competition with low-priced imported steel products, including those from China, continues, and improvement in selling prices is expected to take time. In South Korea, a major export destination, demand for structural steel remains sluggish, but PY VINA is working to expand exports to other regions. PY VINA expects profit to slightly exceed the previous forecast (an increase in profit from the previous fiscal year). South Korea (YKS) Although the South Korean economy is showing signs of recovery, particularly in the semiconductor industry, a full-fledged recovery in demand for rebars is expected to take more time due to the sluggish construction and real estate markets. The market for rebars also remains weak, and YKS expects profit to remain in line with the previous forecast (an increase in profit from the previous fiscal year). The exchange rates (for the period from January to December 2026) assumed for translating the revenues and expenses of overseas subsidiaries and affiliates are as follows: Average exchange rates during the period: 157.14 yen/U.S. dollar, 4.78 yen/baht, and 0.0090 yen/Indonesian rupiah The exchange rates assumed for translating the assets and liabilities of each company at the end of the fiscal year are as follows: (For overseas companies, as of the end of December 2026) Period-end exchange rates: 152.00 yen/U.S. dollar, 4.52 yen/baht, and 0.0085 yen/Indonesian rupiah (For domestic companies, as of the end of March 2027) Period-end exchange rate: 152.00 yen/U.S. dollar (Reference) Assumptions for the previous forecast Average exchange rates during the period: 155.30 yen/U.S. dollar, 4.74 yen/baht, and 0.0089 yen/Indonesian rupiah (For overseas companies, as of the end of December 2026) Period-end exchange rates: 152.00 yen/U.S. dollar, 4.57 yen/baht, and 0.0085 yen/Indonesian rupiah (For domestic companies, as of the end of March 2027) Period-end exchange rate: 152.00 yen/U.S. dollar YAMATO KOGYO CO., LTD. - 6 -
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Actual results for the previous fiscal year Average exchange rates during the period: 149.78 yen/U.S. dollar, 4.57 yen/baht, and 0.0091 yen/Indonesian rupiah (For overseas companies, as of the end of December 2025) Period-end exchange rates: 156.54 yen/U.S. dollar, 4.95 yen/baht, and 0.0093 yen/Indonesian rupiah (For domestic companies, as of the end of March 2026) Period-end exchange rate: 159.93 yen/U.S. dollar YAMATO KOGYO CO., LTD. - 7 -
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2. Semi-annual Consolidated Financial Statements and Primary Notes (1) Semi-annual Consolidated Balance Sheet (Millions of yen) As of March 31, 2026 As o f September 30, 2026 Assets Current assets Cash and deposits 219,383 249,614 Notes and accounts receivable - trade 23,176 20,150 Merchandise and finished goods 24,189 26,743 Work in process 1,060 1,221 Raw materials and supplies 28,275 30,053 Other 14,083 19,298 Allowance for doubtful accounts (24) (25) Total current assets 310,145 347,056 Non-current assets Property, plant and equipment Buildings and structures, net 20,970 23,152 Machinery, equipment and vehicles, net 53,858 52,255 Land 29,489 28,868 Construction in progress 7,796 8,621 Other, net 3,827 3,748 Total property, plant and equipment 115,942 116,647 Intangible assets Goodwill 12,192 11,374 Other 3,669 3,501 Total intangible assets 15,862 14,876 Investments and other assets Investment securities 46,877 49,274 Investments in capital 122,413 123,467 Retirement benefit asset 2,119 2,115 Long-term accounts receivable - other 12,966 7,309 Other 7,298 7,108 Allowance for doubtful accounts (84) (77) Total investments and other assets 191,590 189,197 Total non-current assets 323,395 320,721 Total assets 633,540 667,777 YAMATO KOGYO CO., LTD. - 8 -
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(Millions of yen) As of March 31, 2026 As o f September 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 9,099 10,455 Current portion of long-term borrowings 744 182 Accounts payable - other 4,641 5,068 Accrued expenses 3,522 3,412 Income taxes payable 730 1,190 Advances received 1,473 3,217 Provision for bonuses 919 1,234 Other 1,295 4,361 Total current liabilities 22,426 29,122 Non-current liabilities Deferred tax liabilities 20,919 23,328 Retirement benefit liability 3,173 3,012 Other 5,602 5,729 Total non-current liabilities 29,696 32,070 Total liabilities 52,122 61,193 Net assets Shareholders' equity Share capital 7,996 7,996 Capital surplus 101 103 Retained earnings 438,530 454,177 Treasury shares (14,074) (14,058) Total shareholders' equity 432,554 448,219 Accumulated other comprehensive income Valuation difference on available-for-sale securities 8,279 9,712 Deferred gains or losses on hedges 2 2 Foreign currency translation adjustment 100,057 107,854 Remeasurements of defined benefit plans 851 819 Total accumulated other comprehensive income 109,190 118,389 Non-controlling interests 39,672 39,975 Total net assets 581,417 606,584 Total liabilities and net assets 633,540 667,777 YAMATO KOGYO CO., LTD. - 9 -
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(2) Semi-annual Consolidated Statements of Income and Comprehensive Income Semi-annual Consolidated Statement of Income (For the six months) (Millions of yen) For the six months ended September 30, 2025 For the six months ended September 30, 2026 Net sales 76,180 84,046 Cost of sales 65,645 74,632 Gross profit 10,534 9,413 Selling, general and administrative expenses Packing and transportation costs 2,622 2,623 Salaries and allowances 1,508 1,607 Provision for bonuses 311 383 Retirement benefit expenses 160 71 Other 3,937 4,502 Total selling, general and administrative expenses 8,540 9,188 Operating profit 1,994 224 Non-operating income Interest income 4,488 3,341 Dividend income 363 166 Equity in earnings of affiliates 21,093 41,745 Foreign exchange gains - 134 Other 795 717 Total non-operating income 26,740 46,106 Non-operating expenses Interest expenses 111 66 Foreign exchange losses 618 - Loss on valuation of derivatives - 146 Other 76 46 Total non-operating expenses 806 259 Ordinary profit 27,928 46,071 Extraordinary income Gain on sale of non-current assets 9 8 Total extraordinary income 9 8 Extraordinary losses Loss on retirement of non-current assets 245 236 Provision for loss on litigation 53 388 Provision for loss on transfer of receivables 735 - Provision for discount expense on long-term receivable - 3,146 Other 13 17 Total extraordinary losses 1,048 3,788 Profit before income taxes 26,889 42,291 Income taxes - current 8,457 11,793 Income taxes - deferred (1,103) 1,928 Total income taxes 7,353 13,722 Profit 19,536 28,568 Profit attributable to non-controlling interests 402 1,012 Profit attributable to owners of parent 19,133 27,556 YAMATO KOGYO CO., LTD. - 10 -
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Semi-annual Consolidated Statement of Comprehensive Income (For the six months) (Millions of yen) For the six months ended September 30, 2025 For the six months ended September 30, 2026 Profit 19,536 28,568 Other comprehensive income Valuation difference on available-for-sale securities 3,780 1,391 Foreign currency translation adjustment (23,711) 2,500 Remeasurements of defined benefit plans, net of tax 292 (31) Share of other comprehensive income of entities accounted for using equity method (11,059) 4,945 Total other comprehensive income (30,698) 8,805 Comprehensive income (11,162) 37,374 Comprehensive income attributable to Comprehensive income attributable to owners of parent (8,965) 36,754 Comprehensive income attributable to non-controlling interests (2,197) 619 YAMATO KOGYO CO., LTD. - 11 -
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(3) Semi-annual Consolidated Statement of Cash Flows (Millions of yen) For the six months ended September 30, 2025 For the six months ended September 30, 2026 Cash flows from operating activities Profit before income taxes 26,889 42,291 Depreciation 5,063 5,457 Interest and dividend income (4,851) (3,508) Interest expenses 111 66 Equity in (earnings) losses of affiliates (21,093) (41,745) Decrease (increase) in trade receivables 374 2,922 Decrease (increase) in inventories 2,619 (5,141) Increase (decrease) in trade payables (1,677) 1,426 Other, net 2,705 3,891 Subtotal 10,141 5,660 Interest and dividends received 37,386 49,046 Interest paid (65) (21) Income taxes paid (9,893) (9,701) Net cash provided by (used in) operating activities 37,569 44,983 Cash flows from investing activities Payments into time deposits (270,385) (119,671) Proceeds from withdrawal of time deposits 196,377 151,233 Purchase of property, plant and equipment (5,396) (6,903) Purchase of shares of subsidiaries and associates (224) - Other, net (199) (56) Net cash provided by (used in) investing activities (79,828) 24,602 Cash flows from financing activities Repayments of long-term borrowings (570) (552) Purchase of treasury shares (10,776) (0) Dividends paid (12,416) (11,959) Dividends paid to non-controlling interests (549) (316) Other, net (213) (249) Net cash provided by (used in) financing activities (24,526) (13,079) Effect of exchange rate change on cash and cash equivalents (6,439) 2,870 Net increase (decrease) in cash and cash equivalents (73,225) 59,376 Cash and cash equivalents at beginning of period 124,021 75,458 Cash and cash equivalents at end of period 50,796 134,834 YAMATO KOGYO CO., LTD. - 12 -
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(4) Notes to Semi-annual Consolidated Financial Statements (Notes on Going Concern Assumptions) Not applicable. (Notes on Significant Changes in the Amount of Shareholders’ Equity) Not applicable. (Application of Special Accounting Treatment for the Preparation of Semi-annual Consolidated Financial Statements) (Calculation of tax expenses) Tax expenses are calculated by reasonably estimating the effective tax rate after app lying tax effect accounting to profit befo re income taxes for the fiscal year end ing March 31, 2027, ex cluding certain subsidiaries, and multiplying profit before income taxes for the second quarter (interim) by the estimated effective tax rate. (Additional Information) (Early payment of the receivable) We signed the share sale and purchase agreement on June 18, 2025 (“SPA”), with Foulath Holding B.S.C with regard to the share in SULB Company BSC (c) and United Steel Company (“Sulb”) Bahrain Venture Co. W.L.L., the equity method affiliates in the Middle East business. According to the SPA, the US$140M receivable was originally scheduled to be pa id out over several years, with the first receipt being US$30M in February 2026. The SPA also includes an option that enables Foulath to make a lump sum early payment. On 28 May 2026, Foulath informed us that they intended to exercise the early payment option. Based on that, we recorded an extraordinary loss provi sion of US$20M (3,146 million yen) for the early payment discount in the first half of our fiscal y ear ending in March 2027. Subsequently, the early payment was made on October 5, 2026, and we re ceived US$90M after the deduction of the early payment discount. YAMATO KOGYO CO., LTD. - 13 -
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(Segment Information, etc.) Ⅰ. Six months ended September 30, 2025 (April 1, 2025 to September 30, 2025) 1. Information about Net Sales and Profit (Loss) for Each Reportable Segment (Millions of yen) Reportable segments Other (Note 1) Total Reconciliations (Note 2) Consolidated (Note 3) Steel (Japan) Steel (Thailand) Steel (Indonesia) Trackwork materials Subtotal Net sales (1) Sales to customers 26,369 32,005 11,039 4,745 74,160 2,019 76,180 – 76,180 (2) Inter-segment sales and transfers 348 167 – – 515 – 515 (515) – Total 26,718 32,173 11,039 4,745 74,676 2,019 76,695 (515) 76,180 Segment profit or (loss) 1,438 1,548 (31) 844 3,799 217 4,016 (2,022) 1,994 (Notes) 1. The “Other” category consists of business segments not included in reportable segments, and includes manufacture and sale of counterweights, tr ansportation, medical waste treatment, and real estate leasing. 2. The reconciliations of segment profit or (loss) included corporate general expenses of ¥ (2,022) million which were not allocated to the reportabl e segments. Corporate general expenses consist mainly of general expenses that are not attributable to the reportable segments. 3. Certain reconciliations were made between segment profit or (loss) and operating profit in the semi- annual consolidated statements of income. Ⅱ. Six months ended September 30, 2026 (April 1, 2026 to September 30, 2026) 1. Information about Net Sales and Profit (Loss) for Each Reportable Segment (Millions of yen) Reportable segments Other (Note 1) Total Reconciliations (Note 2) Consolidated (Note 3) Steel (Japan) Steel (Thailand) Steel (Indonesia) Trackwork materials Subtotal Net sales (1) Sales to customers 20,680 40,526 16,137 4,784 82, 129 1,916 84,046 – 84,046 (2) Inter-segment sales and transfers 218 – – – 218 – 218 (218) – Total 20,899 40,526 16,137 4,784 82,348 1,916 84,265 (218) 84,046 Segment profit or (loss) (3,018) 4,088 729 689 2,490 51 2,542 (2,317) 224 (Notes) 1. The “Other” category consists of business segments not included in reportable segments, and includes manufacture and sale of counterweights, tr ansportation, medical waste treatment, and real estate leasing. 2. The reconciliations of segment profit or (loss) included corporate general expenses of ¥ (2,317) million which were not allocated to the reportabl e segments. Corporate general expenses consist mainly of general expenses that are not attributable to the reportable segments. 3. Certain reconciliations were made between segment profit or (loss) and operating profit in the semi- annual consolidated statements of income. (Significant Subsequent Events) Not applicable. YAMATO KOGYO CO., LTD. - 14 -