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YODOKO YODOKO Group Financial Results Briefing Material for the First Quarter of the Fiscal Year Ending March 31 , 2027 YODOKO , Ltd.
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1 Contents 1. Financial Highlights 2. 1Q FY3/27 Results 3. FY3/27 Forecast 4. Topics 5. References YODOKO, Ltd. All rights reserved.
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1. Financial Highlights
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3 ◼ Sales increased at YODOKO mainly due to an increase in sales volume, but earnings decreased because of higher various costs. ◼ Overseas, sales and earnings decreased mainly due to lower sales volume at SYSCO (Taiwan). FY3/27 Forecast 1Q FY3/27 Results Financial Highlights ◼ Upward revision to sales and earnings from the previous forecast. ◼ We plan to pay an interim dividend of 20 yen and a year-end dividend of 42 yen, making an annual dividend of 62 yen per share. YODOKO, Ltd. All rights reserved.
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2. 1Q FY3/27 Results
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(Billions of yen, rounded down to the nearest 10 million yen) 1Q FY3/26 Result 1Q FY3/27 Result YoY Change Net sales 52.76 51.51 (1.25) (2.4)% Operating profit 4.19 3.85 (0.34) (8.2)% Ordinary profit 5.12 5.00 (0.12) (2.4)% Profit attributable to owners of parent 3.40 3.70 +0.30 +9.1% 5 Overview of Consolidated Results of Operations YODOKO, Ltd. All rights reserved. ◼ Consolidated net sales and operating profit decreased. ◼ Profit attributable to owners of parent increased because of an increase in gain on sale of non-current assets from one year earlier.
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6 (Billions of yen, rounded down to the nearest 10 million yen) 1Q FY3/26 Result 1Q FY3/27 Result YoY Change YODOKO Net sales 31.53 32.48 +0.95 +3.0% Operating profit 3.00 2.85 (0.14) (4.9)% SYSCO Net sales 16.40 14.22 (2.18) (13.3)% Operating profit 0.80 0.60 (0.19) (24.6)% YSS Net sales 1.97 2.34 +0.36 +18.6% Operating profit (0.05) (0.05) +0.00 - PPT Net sales 1.27 1.12 (0.14) (11.3)% Operating profit 0.20 0.20 +0.00 +0.3% YODOKO, Ltd. All rights reserved. Performance by Main Group Companies ◼ At YODOKO, sales increased due to higher sales volume for steel sheets but earnings decreased mainly because of higher various costs. ◼ At SYSCO, sales and earnings decreased due to lower sales volume. At YSS, the earnings improvement was small despite a higher sales volume. The PPT’s performance remained steady.
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7 ◼ Operating profit decreased mainly due to the decline in earnings at YODOKO and SYSCO, affected by the negative impact of increases in various costs and tariffs, respectively. 4.19 3.85 (0.14) (0.19) (0.01) 0.01 0.0 10.0 20.0 30.0 40.0 50.0 前期営業利益 ヨドコウ減益 海外子会社減益 国内子会社減益 連結調整 当期営業利益 Decrease of 0.34 billion yen 1Q FY3/26 Operating profit 1Q FY3/27 Operating profit Lower earnings at YODOKO Lower earnings at overseas subsidiaries Lower earnings at subsidiaries in Japan Adjustment for consolidation Changes in Consolidated Operating Profit (YoY Change) (Billions of yen, rounded down to the nearest 10 million yen) YODOKO, Ltd. All rights reserved. 2.00 0.00 1.00 4.00 3.00 5.00
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8 3.00 (0.01) 2.85 (1.56) 1.25 0.17 0.0 10.0 20.0 30.0 40.0 前期営業利益 販売増減・単価変動 在庫評価益 販促・宣伝関係費減少 その他 当期営業利益 Decrease of 0.14 billion yen Changes in Non-Consolidated Operating Profit (YoY Change) 1Q FY3/26 Operating profit Changes in sales and unit prices Inventory valuation gain Decrease in sales promotion and advertising expenses Others 1Q FY3/27 Operating profit (Billions of yen, rounded down to the nearest 10 million yen) YODOKO, Ltd. All rights reserved. ◼ Operating profit decreased due to increases in the costs of zinc, paint, energy and others. 2.00 0.00 1.00 4.00 3.00
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9 (Billions of yen, rounded down to the nearest 10 million yen) 1Q FY3/26 Result 1Q FY3/27 Result YoY Change Steel Sheet- related Net sales 50.09 48.97 (1.11) (2.2)% Segment profit 4.21 3.79 (0.42) (10.0)% Roll Net sales 0.85 0.71 (0.13) (16.0)% Segment profit 0.02 0.07 +0.04 +176.7% Grating Net sales 0.69 0.68 (0.00) (1.2)% Segment profit 0.00 0.00 (0.00) (68.8)% Real Estate/Other Net sales 1.13 1.13 +0.00 +0.5% Segment profit 0.34 0.39 +0.05 +14.6% Performance by Business Segment *Adjustments are not included. YODOKO, Ltd. All rights reserved.
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10 • Demand for steel remains weak because the chronic labor shortage and high cost of materials and labor in the construction sector are delaying construction projects and a full-scale recovery of automobile production is slower than expected. • Supply chain disruptions in many industries caused by uncertainty about the procurement of naphtha are also negatively impacting the supply and demand for steel. • The continuation of a large volume of steel exports at low prices by China as internal demand remains soft is exerting downward pressure on steel prices worldwide. • The U.S., European countries and emerging countries are responding with anti-dumping tariffs and other trade measures. Increasing trade protectionism is making the outlook for the global steel trade even more uncertain. Business Environment Segment Information (Steel Sheet-related Business (1)) ◼ Overseas steel markets◼ Japanese steel market ▍ Steel Sheet-related Business Sales and earnings decreased mainly because of lower sales volumes at SYSCO despite higher sales volumes in Japan of steel sheet products for specific high-demand customers and general distribution. YODOKO, Ltd. All rights reserved. YoY Change1Q FY3/27 (Result) Net sales Segment profit billion yen billion yen Down 2.2% Down 10.0% 48.97 3.79
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11 • Pre-painted steel Electrical products: The sales volume increased. Home appliance manufacturers started preparations for the summer selling season for refrigerators and other large appliances and sales were strong in other categories. Building materials: A small sales volume increase even as demand for building materials remained sluggish. Growth was due partly to new orders from current customers. • Galvanized steel The sales volume increased even though demand in the key construction sector remains weak. Growth was attributable to a shift by customers to Japanese steel in response to the start of an anti-dumping investigation concerning Korean and Chinese products and to activities to capture a larger market share. ◼ For specific high-demand customers ◼ For general distribution Construction starts remained sluggish mainly due to an increase in various costs and the labor shortage. However, even as shipments remained low, the sales volume increased as customers continued to place orders early prior to expected price increases. The sales volumes of pre-painted sheets and galvanized steel sheets increased because of activities to target additional demand and increase market share. However, earnings were down primarily due to higher various costs. Segment Information (Steel Sheet-related Business (2)) ▍ Steel Sheet (Japan) Overall sales in Japan increased but earnings decreased YODOKO, Ltd. All rights reserved.
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12 • Sales and earnings decreased. The sales volume of pre-painted products increased in Taiwan. However, exports of these products were down and the volume of galvanized sheets sold in Taiwan and exported declined from one year earlier. • Only a small earnings improvement despite measures to strengthen ties with agents and cut costs. ◼ YSS (China): ◼ SYSCO (Taiwan): • Although the sales volume of steel for mainstay AC outdoor units was down from one year earlier, sales and earnings were firm because of a sufficient sales volume and activities to maintain spreads. ◼ PPT (Thailand): ▍ Steel Sheet (Overseas) Segment Information (Steel Sheet-related Business (3)) Sales and earnings decreased at SYSCO, YSS saw an improvement in earnings, and PPT continued to perform steadily. YODOKO, Ltd. All rights reserved.
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13 • Sales of exterior construction material products declined as sales volume of both roof and panel products decreased due to reduced construction investments driven by price hikes in building materials and labor shortage. • Construction sales remained sluggish because of cancelations of some projects caused by the high cost of materials, the labor shortage and insufficient supplies of raw materials due to Middle East turmoil. ▍ Building Materials Segment Information (Steel Sheet-related Business (4)) Sales and earnings decreased year on year due to a decline in sales of both exterior construction material products and exterior products. ◼ Exterior construction material products/Construction ◼ Exterior products • Sales of garages and warehouse storages remained stable. • Sales volume of storage sheds declined mainly due to lower housing starts and subdued consumer sentiment caused by inflation. YODOKO, Ltd. All rights reserved.
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14 • Sales decreased but earnings were higher because of a large volume of sales of rolls with substantial added value used in the steel industry. • In the real estate business, sales and earnings increased partially because of sales of real estate for sale and other activities. • In other businesses, sales were down because of more transactions within the YODOKO Group. Earnings were higher due to an improvement in profitability. ▍ Roll Business ▍ Grating Business ▍ Real Estate Business and Other Businesses Segment Information (Roll, Grating, Real Estate and Other Businesses) 1Q FY3/27 (Result) YoY Change Net sales Segment profit billion yen billion yen billion yen billion yen billion yen billion yen Down 16.0% Up 176.7%0.07 0.71 • Sales and earnings decreased due to a decrease in sales volume mainly because of the ongoing low volume of highway projects. YODOKO, Ltd. All rights reserved. Down 1.2% Down 68.8% 0.68 0.00 Up 0.5% Up 14.6% 1.13 0.39 1Q FY3/27 (Result) Net sales Segment profit 1Q FY3/27 (Result) Net sales Segment profit YoY Change YoY Change
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15 (Billions of yen, rounded down to the nearest 10 million yen) As of Mar. 31, 2026 As of Jun. 30, 2026 Change Remarks Total assets 266.45 260.94 (5.51) (Current assets) 165.58 157.24 (8.34) Decrease in securities, etc. (Non-current assets) 100.87 103.69 +2.82 Increase in investment securities, etc. Liabilities 42.78 42.40 (0.37) (Current liabilities) 27.93 26.98 (0.94) Decrease in accounts payable-trade, etc. (Non-current liabilities) 14.85 15.41 +0.56 Increase in deferred tax liabilities, etc. Net assets 223.67 218.53 (5.13) (Shareholders’ equity) 168.32 161.86 (6.45) Profit attributable to owners of parent of 3.7 billion yen, dividends of (10.1) billion yen, etc. (Accumulated other comprehensive income) 34.24 35.32 +1.07 Increase in valuation difference on available-for- sale securities (Non-controlling interests) 21.02 21.27 +0.24 BPS (Yen/Share) 1,414.21 1,376.60 (37.61) Equity 202.57 197.19 (5.38) Equity ratio 76.0% 75.6% (0.4)pt YODOKO, Ltd. All rights reserved. Consolidated Financial Position
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3. FY3/27 Forecast
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17 (Billions of yen, rounded down to the nearest 10 million yen) FY3/27 Progress ratio 1Q 2Q 1H 2H Full year Vs. 1H forecast Vs. Full-year forecastResult Forecast Forecast Forecast Forecast Net sales 51.51 55.48 107.00 105.00 212.00 48.1% 24.3% Operating profit 3.85 3.54 7.40 5.50 12.90 52.1% 29.9% Ordinary profit 5.00 3.79 8.80 6.10 14.90 56.9% 33.6% Profit attributable to owners of parent 3.70 4.29 8.00 3.80 11.80 46.4% 31.4% (Reference) Previous full year forecast (May 11, 2026) 196.00 10.30 11.90 10.00 YODOKO, Ltd. All rights reserved. FY3/27 Forecast (Consolidated) ◼ The FY3/27 forecast includes expected inflationary pressure and supply chain disruptions caused by the situation in the Middle East. YODOKO anticipates smaller impact of these factors on its results of operations and accordingly, the previously announced sales and earnings forecasts were revised upward.
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Dividends 18 ◼ We plan to pay an interim dividend of 20 yen a year-end dividend of 42 yen, making an annual dividend of 62 yen per share. YODOKO, Ltd. All rights reserved. (Yen/Shares) (Figures in parenthesis are estimates) * YODOKO conducted a 1-to-5 common share split effective on July 1, 2025. Dividends and EPS in this table have been adjusted for this split by dividing FY3/24 results by five. 11.00 20.00 20.00 (20.00) 29.00 50.20 71.00 (42.00)40.00 70.20 91.00 (62.00) 30.86 93.41 120.49 (82.37) 0.00 20.00 40.00 60.00 80.00 100.00 120.00 FY3/24 FY3/25 FY3/26 FY3/27 Forecast Interim dividend Year-end dividend EPS (Consolidated)
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4. Topics
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Signed of Agreement for the Sale of Equity Interests in YSS ◼ YODOKO and SYSCO signed a agreement concerning the sale of part or all of the equity interests held by these companies in YSS. 20YODOKO, Ltd. All rights reserved. • Name of purchaser: Hebei Xinjin Wanli New Material Science & Technology Co., Ltd. • Schedule: Signing of agreement for the sale of equity interests June 26, 2026 Date of the sale of equity interests Early August 2026 (tentative) • Impact on results of operations: Already included in the FY3/27 forecast
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5. References
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51.06 203.95 52.59 208.46 52.76 195.37 51.51 212.00 0.0 500.0 1,000.0 1,500.0 2,000.0 2,500.0 1Q Full year 1Q Full year 1Q Full year 1Q Full-year forecast FY3/24 FY3/25 FY3/26 FY3/27 2.89 12.01 4.06 13.88 4.19 11.86 3.85 (12.90) 3.73 15.20 5.12 21.55 5.12 17.51 5.00 (14.90) 2.01 4.45 3.21 13.49 3.40 17.40 3.70 (11.80) 0.0 50.0 100.0 150.0 200.0 1Q Full year 1Q Full year 1Q Full year 1Q Full-year forecast FY3/24 FY3/25 FY3/26 FY3/27 Consolidated operating profit Consolidated ordinary profit Profit attributable to owners of parent 22YODOKO, Ltd. All rights reserved. Consolidated Net Sales/Profit and Loss ▍ Consolidated Net Sales ▍ Consolidated Profit and Loss (Billions of yen, rounded down to the nearest 10 million yen) 0.00 5.00 10.00 15.00 20.00 0.00 50.00 100.00 150.00 200.00 250.00
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23 1Q FY3/24 1Q FY3/25 1Q FY3/26 1Q FY3/27 PPT 0.6 0.4 0.5 0.4 YSS 1.6 1.2 1.4 1.6 SYSCO 7.1 9.2 10.7 9.2 YODOKO 12.2 11.9 11.3 13.1 Total 21.5 22.9 24.0 24.5 21.5 22.9 24.0 24.5 0.0 5.0 10.0 15.0 20.0 25.0 30.0 YODOKO, Ltd. All rights reserved. Before eliminations for consolidation Group Primary Sales Volume of Steel Sheet Products (10,000 tons)
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24 48.47 50.26 50.09 48.97 2.89 4.04 4.21 3.79 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 475.0 480.0 485.0 490.0 495.0 500.0 505.0 1Q FY3/24 1Q FY3/25 1Q FY3/26 1Q FY3/27 Sales Profit 0.88 0.59 0.85 0.71 0.05 0.00 0.02 0.07 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 1Q FY3/24 1Q FY3/25 1Q FY3/26 1Q FY3/27 Sales Profit YODOKO, Ltd. All rights reserved. ▍ Steel Sheet-related Business ▍ Roll Business Segment Sales and Profit (Steel Sheet-related Business and Roll Business) (Billions of yen, rounded down to the nearest 10 million yen) Segment Sales Segment Profit Segment Sales Segment Profit 47.50 48.00 48.50 49.00 49.50 50.00 50.50 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 0.00 0.10 0.20 0.30 0.400.40 0.50 0.60 0.70 0.80 0.90 1.00 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14
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25 0.85 0.85 0.69 0.68 0.01 0.04 0.00 0.00 0.0 0.2 0.4 0.6 0.8 1.0 1.2 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 1Q FY3/24 1Q FY3/25 1Q FY3/26 1Q FY3/27 Sales Profit 0.84 0.88 1.13 1.13 0.26 0.36 0.34 0.39 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 0.0 2.0 4.0 6.0 8.0 10.0 12.0 1Q FY3/24 1Q FY3/25 1Q FY3/26 1Q FY3/27 Sales Profit 0.000.20 0.40 0.60 0.80 1.00 1.20 YODOKO, Ltd. All rights reserved. Segment Sales and Profit (Grating Business, Real Estate and Other Businesses) ▍ Grating Business ▍ Real Estate and Other Businesses (Billions of yen, rounded down to the nearest 10 million yen) Segment Sales Segment Profit Segment Sales Segment Profit 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.00 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45
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Information in these materials contains forward-looking statements that are based on information available at the time these materials were released and are not guarantees of future performance. Actual results may differ from these statements for a number of reasons. In the event of any discrepancy between this translated document and the Japanese original, the Japanese original shall prevail.