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© The Japan Steel Works, Ltd. All Rights Reserved. 1 Material Revolution, making the world sustainable and prosperous. FY2025 / Business Results for the 1st Half of FY2025 November 14, 2025 Toshio Matsuo Representative Director & President The Japan Steel Works, Ltd.
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© The Japan Steel Works, Ltd. All Rights Reserved. 2 Material Revolution, making the world sustainable and prosperous. Note The performance forecasts and other forward-looking statements included in this material are based on the information that was available to The Japan Steel Works, Ltd. (the “Company”) and certain assumptions deemed to be reasonable at the time this material was prepared, and the actual results may differ significantly from these forecasts due to a variety of reasons. This material has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated version and the Japanese original, the original shall prevail.
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© The Japan Steel Works, Ltd. All Rights Reserved. 3 Material Revolution, making the world sustainable and prosperous. Subsegment Customer / Market Production Base Industrial Machinery Products Business Material and Engineering Business Hiroshima Yokohama Meiki (Nagoya) Muroran Plastic production and processing machinery Molding machines Defense equipment Others Major Product ⚫Pelletizer ⚫Twin-screw extruder ⚫Film and sheet manufacturing equipment Steel forgings and plates Engineering, etc. Application ⚫Plastic molding machine (injection molding machine, blow molding machine) ⚫Artillery ⚫Wheeled armored vehicle ⚫Missile canister ⚫Laser-applied equipment - FPD equipment - Power semiconductor manufacturing equipment ⚫Press machine ⚫Vacuum laminator ⚫Deposition system ⚫Plastic ⚫Battery, food packaging, optical device, semiconductor ⚫Automotive, electrical / electronic equipment, everyday goods, IT device etc. ⚫Defense equipment ⚫OLED / LCD panel ⚫Printed circuit board, semiconductor package substrate ⚫Rotor shaft for generator / steam turbine ⚫Parts for nuclear power reactor / steam generator ⚫Clad steel plate ⚫Steam turbine / generator (thermal / nuclear) ⚫Reactor pressure vessel components etc. (light water reactor, fast breeder reactor, high-temperature gas- cooled reactor, fusion reactor etc.) ⚫Various tanks for chemical / oil / gas industries ⚫Magnesium molding machine Petrochemical / gas chemical industry Heavy electrical equipment Automotive components Plastic products Display panel Semiconductor Oil / Gas industry Renewable energy etc. Business Segment (Source: JGSDF website) (Source: JMSDF website) Other Businesses Communication / Electronic equipment ⚫Telecommunication ⚫Optical equipment Composition of Business Segments and its Major Products Ministry of Defense Japan Coast Guard ⚫Hydrogen storage steel pressure vessel ⚫Non-destructive testing ⚫Photonic ⚫Composite material ⚫Metal material
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© The Japan Steel Works, Ltd. All Rights Reserved. 4 Material Revolution, making the world sustainable and prosperous. INDEX PART Ⅰ Results for the 1st Half of FY2025 06 Summary 07 Status of Orders Received, Sales and Profits 08 Analysis on Changes in Operating Profit 09 Results by Segment 10 Industrial Machinery Products Business 11 Material and Engineering Business PART Ⅱ Forecasts for FY2025 13 Status of Orders Received, Sales and Profits 14 Analysis on Changes in Operating Profit 15 Forecasts by Segments 16 Industrial Machinery Products Business 17 Material and Engineering Business 18 Changes in Order Backlog and Forecasts 19 Status of Capital Investment and Depreciation, Cash Flows, Financial Position, and R&D Expenses 20 Dividend Policy of JGP2028 and the Results PART Ⅲ Business Overview 22 Industrial Machinery Products Business –Market sentiment for the main products 23 Material and Engineering Business –Market sentiment for the main products 24 Plastic Production and Processing Machinery –Progress and outlook of investment in Hiroshima Plant 25 Global Expansion 26 Defense Equipment –Production capacity expansion through optimization of manufacturing locations and mutual complementation on track 27 Thermal and Nuclear Power Products –Market environment 28 Thermal and Nuclear Power Products –Capital investment decision to increase production capacity 29 Establishment of a New R&D Site Reference Materials: Trends in Sales and Profit / Trends in Major Assets and Cash Flows /Corporate philosophy, starting with purpose
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© The Japan Steel Works, Ltd. All Rights Reserved. 5 Material Revolution, making the world sustainable and prosperous. [PART I] Results for the 1st Half of FY2025
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© The Japan Steel Works, Ltd. All Rights Reserved. 6 Material Revolution, making the world sustainable and prosperous. ✓ Orders received Plastic production and processing machinery fell short of the initial forecast due to delays in investment decisions triggered by U.S. tariff policies On the other hand, orders for thermal and nuclear power products as well as defense equipment exceeded the initial forecasts, keeping the overall progress on track ✓ Sales The ample order backlog was steadily converted into sales, resulting in progress largely in line with the plan and achieving YoY growth ✓ Profits Progressed as planned Profits increased YoY mainly due to increase of sales and price improvement FY2025 1H: Summary
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© The Japan Steel Works, Ltd. All Rights Reserved. 7 Material Revolution, making the world sustainable and prosperous. FY2025 1H: Status of Orders Received, Sales and Profits Orders received decreased, while sales and profit increased YoY (Unit: Billion Yen) FY2024 1st half (A) FY2025 1st half (B) YoY (B)-(A) Orders received 141.0 124.0 (17.0) Net sales 108.2 135.6 27.4 Operating profit 8.2 12.1 3.9 (%) 7.7% 9.0% - Ordinary profit 8.6 12.6 4.0 Profit attributable to owners of parent 6.0 10.0 4.0 Earnings per share (Yen) 81.65 137.11 55.46 Dividend per share (Yen) 38.0 44.0 6.0 EBITDA 11.8 16.2 4.4 (%) 11.0% 12.0% -
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© The Japan Steel Works, Ltd. All Rights Reserved. 8 Material Revolution, making the world sustainable and prosperous. FY2025 1H: Analysis on Changes in Operating Profit FY2024 1st half FY2025 1st half 8.2 12.1 +5.7 (6.0) (2.3) +1.0 +0.1 Change in production, sales and prices Variable cost Fixed cost Impact of forex fluctuations Unclassifiable expenses Average exchange rates for sales in USD FY2024 1H: JPY152/USD FY2025 1H: JPY146/USD Operating profit increased by ¥3.9 billion due to the increase of sales and price improvement （Unit: Billion Yen） Machinery: +4.9 Material: +0.8 Machinery: (1.6) Material: (0.7) Machinery: (0.2) Material: (0.4)
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© The Japan Steel Works, Ltd. All Rights Reserved. 9 Material Revolution, making the world sustainable and prosperous. FY2025 1H: Results by Segment Industrial Machinery Products: Orders received decreased YoY , sales and profit increased YoY Material and Engineering: Sales and profit were roughly equivalent level as the previous year, orders received increased YoY Industrial Machinery Products Material and Engineering (Unit: Billion Yen) FY2024 1st half (A) FY2025 1st half (B) YoY (B)-(A) Orders received 117.3 89.8 (27.5) Net sales 86.1 113.9 27.8 Operating profit 6.9 10.1 3.2 (%) 8.0% 8.9% - EBITDA 8.8 12.4 3.6 (%) 10.2% 10.9% - FY2024 1st half (A) FY2025 1st half (B) YoY (B)-(A) Orders received 22.6 32.8 10.2 Net sales 21.0 20.5 (0.5) Operating profit 4.1 3.7 (0.4) (%) 19.5% 18.3% - EBITDA 5.0 4.9 (0.1) (%) 24.1% 24.0% -
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© The Japan Steel Works, Ltd. All Rights Reserved. 10 Material Revolution, making the world sustainable and prosperous. FY2025 1H: Industrial Machinery Products Business Sales and profit progressed as planned, resulting in YoY growth Orders received decreased YoY due to investment stagnation in plastic production and processing machinery (Unit: Billion Yen) FY2024 1st half (A) FY2025 1st half (B) YoY (B)-(A) FY2024 1st half (A) FY2025 1st half (B) YoY (B)-(A) Plastic prduction and processing machinery 29.5 44.3 14.8 37.4 20.6 (16.8) Molding machine 30.7 32.5 1.8 34.0 30.1 (3.9) Defense equipment 11.3 14.5 3.2 31.8 26.7 (5.1) Others 14.4 22.6 8.2 14.0 12.4 (1.6) Total 86.1 113.9 27.8 117.3 89.8 (27.5) Operating income 6.9 10.1 3.2 Net sales / Operating profit Orders received
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© The Japan Steel Works, Ltd. All Rights Reserved. 11 Material Revolution, making the world sustainable and prosperous. FY2025 1H: Material and Engineering Business Sales and profit were roughly equivalent level as the previous year Orders received increased YoY driven by strong demand for thermal and nuclear power products (Unit: Billion Yen) FY2024 1st half (A) FY2025 1st half (B) YoY (B)-(A) FY2024 1st half (A) FY2025 1st half (B) YoY (B)-(A) Steel forgings and plates 16.9 18.5 1.6 18.8 29.8 11.0 Engineering, etc. 4.1 2.0 (2.1) 3.8 3.0 (0.8) Total 21.0 20.5 (0.5) 22.6 32.8 10.2 Operating profit 4.1 3.7 (0.4) Net sales / Operating profit Orders received
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© The Japan Steel Works, Ltd. All Rights Reserved. 12 Material Revolution, making the world sustainable and prosperous. [PART Ⅱ] Forecasts for FY2025
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© The Japan Steel Works, Ltd. All Rights Reserved. 13 Material Revolution, making the world sustainable and prosperous. FY2025: Forecast for Orders Received, Sales and Profits Orders received, sales and profits remain unchanged from the initial forecasts (Unit: Billion Yen) FY2024 Result (A) Initial forecast (as of Mar. 13, 2025) (B) Revised forecast (C) Orders received 310.2 300.0 300.0 (10.2) 0.0 Net sales 248.5 290.0 290.0 41.5 0.0 Operating profit 22.8 24.5 24.5 1.7 0.0 (%) 9.2% 8.4% 8.4% - - Ordinary profit 23.4 24.5 24.5 1.1 0.0 Profit attributable to owners of parent 17.9 18.5 18.5 0.6 0.0 Earnings per share (Yen) 244.03 251.34 251.34 7.31 0.00 Dividend per share (Yen) 86.0 88.0 88.0 2.0 0.0 EBITDA 30.7 34.2 33.9 3.2 (0.3) (%) 12.4% 11.8% 11.7% - - FY2025 Change from the previous year (C)-(A) Change from the initial forecast (C)-(B)
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© The Japan Steel Works, Ltd. All Rights Reserved. 14 Material Revolution, making the world sustainable and prosperous. FY2025: Analysis on Changes in Operating Profit Operating profit is expected to increase by ¥1.7 billion due to the increase of production and sales and price improvement FY2024 FY2025 Forecast 22.8 24.5 +10.0 (2.3) (5.0) (1.0)+0.1 Change in production, sales and prices Variable Cost Fixed cost Impact of forex fluctuations Unclassifiable expenses Average exchange rates for sales in USD FY2024: JPY153/USD FY2025: JPY145/USD [+11.7] [(3.0)] [(6.2)] [(0.1)] [(0.7)] * Values in the parentheses "[ ]" are the previous forecasts. （Unit: Billion Yen） Machinery: +7.1 Material: +2.9 Machinery: (3.5) Material: (1.5) Machinery: (1.8) Material: (0.5)
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© The Japan Steel Works, Ltd. All Rights Reserved. 15 Material Revolution, making the world sustainable and prosperous. FY2025: Forecasts by Segment Industrial Machinery Products: Forecast for orders revised downwards Material and Engineering: Forecasts for orders and profit revised upwards Industrial Machinery Products Material and Engineering (Unit: Billion Yen) FY2024 Result (A) Initial forecast (as of Mar. 13, 2025) (B) Revised forecast (C) Orders received 258.5 240.5 235.0 (23.5) (5.5) Net sales 199.0 237.0 237.0 38.0 0.0 Operating profit 17.5 19.5 19.5 2.0 0.0 (%) 8.8% 8.2% 8.2% - - EBITDA 21.8 24.4 24.4 2.6 0.0 (%) 11.0% 10.3% 10.3% - - Change from the initial forecast (C)-(B) FY2025 Change from the previous year (C)-(A) FY2024 Result (A) Initial forecast (as of Mar. 13, 2025) (B) Revised forecast (C) Orders received 49.3 55.5 62.0 12.7 6.5 Net sales 47.1 50.0 50.0 2.9 0.0 Operating profit 8.6 9.0 9.5 0.9 0.5 (%) 18.5% 18.0% 19.0% - - EBITDA 10.9 12.1 12.4 1.5 0.3 (%) 23.3% 24.4% 24.9% - - Change from the previous year (C)-(A) Change from the initial forecast (C)-(B) FY2025
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© The Japan Steel Works, Ltd. All Rights Reserved. 16 Material Revolution, making the world sustainable and prosperous. FY2025: Industrial Machinery Products Business Total sales forecast remain as initially planned. The forecast for molding machines was revised downwards, while forecasts for defense equipment and others were revised upwards Orders for plastic production and processing machinery decreased compared to the initial forecast (Unit: Billion Yen) FY2024 FY2024 Result (A) Initial forecast (as of Mar. 13, 2025) (B) Revised forecast (C) Result (A) Initial forecast (as of Mar. 13, 2025) (B) Revised forecast (C) Plastic production and processing machinery 72.2 77.0 77.0 4.8 0.0 51.4 59.0 47.0 (4.4) (12.0) Molding machines 66.9 73.5 70.0 3.1 (3.5) 65.7 70.0 66.0 0.3 (4.0) Defense equipment 32.2 44.5 45.5 13.3 1.0 115.8 83.0 86.0 (29.8) 3.0 Others 27.7 42.0 44.5 16.8 2.5 25.6 28.5 36.0 10.4 7.5 Total 199.0 237.0 237.0 38.0 0.0 258.5 240.5 235.0 (23.5) (5.5) Operating profit 17.5 19.5 19.5 2.0 0.0 Net sales / Operating income Orders received FY2025 FY2025Change from the previous year (C)-(A) Change from the initial forecast (C)-(B) Change from the previous year (C)-(A) Change from the initial forecast (C)-(B)
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© The Japan Steel Works, Ltd. All Rights Reserved. 17 Material Revolution, making the world sustainable and prosperous. FY2025: Material and Engineering Business Sales, profit and orders are expected to grow, driven by thermal and nuclear power related products (Unit: Billion Yen) FY2024 FY2024 Result (A) Initial forecast (as of Mar. 13, 2025) (B) Revised forecast (C) Result (A) Initial forecast (as of Mar. 13, 2025) (B) Revised forecast (C) Steel forgings and plates 38.4 43.0 44.5 6.1 1.5 42.7 51.0 57.0 14.3 6.0 Engineering, etc. 8.7 7.0 5.5 (3.2) (1.5) 6.6 4.5 5.0 (1.6) 0.5 Total 47.1 50.0 50.0 2.9 0.0 49.3 55.5 62.0 12.7 6.5 Operating profit 8.6 9.0 9.5 0.9 0.5 Net sales / Operating income Orders received FY2025 FY2025Change from the previous year (C)-(A) Change from the initial forecast (C)-(B) Change from the previous year (C)-(A) Change from the initial forecast (C)-(B)
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© The Japan Steel Works, Ltd. All Rights Reserved. 18 Material Revolution, making the world sustainable and prosperous. FY2025: Changes in Order Backlog and Forecasts 180.2 210.3 279.4 338.9 336.9 35.0 42.2 55.5 57.8 69.8 215.4 252.7 335.1 396.9 406.9 FY2021 FY2022 FY2023 FY2024 FY2025 Forecast Industrial Machinery Products Business Material and Engineering Business Other Businesses (Unit: Billion Yen) *Figures are as of the end of March of each fiscal year.
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© The Japan Steel Works, Ltd. All Rights Reserved. 19 Material Revolution, making the world sustainable and prosperous. FY2025: Status of Capital Investment and Depreciation, Cash Flows, Financial Position, and R&D Expenses 4.9 7.3 12.1 18.1 29.8 6.1 6.5 7.7 7.8 9.4 FY2021 FY2022 FY2023 FY2024 FY2025 Forecast Capital investment Depreciation 4.9 5.0 5.6 5.6 7.0 FY2021 FY2022 FY2023 FY2024 FY2025 Forecast Industrial Machinery Material and Engineering Other Businesses 151.0 160.6 178.6 195.1 206.8 58.4 43.4 43.6 43.5 87.3 (47.7) (43.8) (53.9) (32.3) 24.9 0.39 0.27 0.24 0.22 0.42 (0.25) 0.25 (100.0) 0.0 100.0 200.0 300.0 FY2021 FY2022 FY2023 FY2024 FY2025 Forecast Net assets Interest-bearing debt Net interest-bearing debt D/E ratio (times) 22.3 (0.9) 21.7 (4.5) (24.2) (2.9) 0.9 (6.8) (12.2) (26.2) 19.4 0.0 14.9 (16.7) (50.5) FY2021 FY2022 FY2023 FY2024 FY2025 Forecast Operating CF Investing CF Free CF Status of Capital Investment and Depreciation Financial Position *Figures are as of the end of March of each fiscal year Status of Cash Flows Status of R&D Expenses (Unit: Billion Yen)
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© The Japan Steel Works, Ltd. All Rights Reserved. 20 Material Revolution, making the world sustainable and prosperous. The consolidated dividend payout ratio target is set as 35% or more, while ensuring a minimum dividend on equity (DOE) of 2.5% Dividend Policy of JGP2028 and the Results Dividend policy during the medium-term management plan JGP2028 Lower–limit dividend (DOE of 2.5%) Performance-based dividend (payout ratio of 35%) ■ Schematic of dividend policy Profit Dividends Results and forecast: Annual dividend forecast for FY2025 is ¥88. FY2021 FY2022 FY2023 FY2024 FY2025 1st half Annual (forecast) Dividend per share (Yen) 57.0 58.0 59.0 86.0 44.0 88.0 Payout ratio (consolidated) 30.1% 35.6% 30.4% 35.2％ 35.0%
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© The Japan Steel Works, Ltd. All Rights Reserved. 21 Material Revolution, making the world sustainable and prosperous. [PART Ⅲ] Business Overview
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© The Japan Steel Works, Ltd. All Rights Reserved. 22 Material Revolution, making the world sustainable and prosperous. Industrial Machinery Products Business – Market sentiment for the main products Industrial Machinery Products Business Market sentiment (FY2024 comparison) Economic conditions from the perspectives of order acquisition Pelletizers ⚫ Investment decisions are being delayed primarily in China, mainly due to reciprocal tariffs between the U.S. and China triggered by the U.S. tariff policies. Meanwhile, projects are progressing, particularly in emerging countries such as India. Twin-screw extruders ⚫ Investment decisions for large-scale projects in Chinese market are delayed. ⚫ Inquiries for global standard machines are increasing in growing markets including India and China where technical requirements are becoming advanced. ⚫ Future-oriented investments for next-gen plastics development and recycling initiatives are increasing. Film and sheet manufacturing equipment ⚫ New investments are unlikely due to stagnant EV-related demand. Engage in technical specification discussions to prepare for future demand recovery. Aim to capture demand for functional materials and packaging materials. After-sales services ⚫ Demand for after-sales services is rising, driven by expanding delivery track record. Strengthen and expand service network in the growing markets including India, the Middle East, and China, while deepening relationships with existing customers and steadily capturing service demand. Plastic molding machines ⚫ Markets, particularly in Asian countries, are showing signs of recovery as tariff frameworks with the U.S. near completion. In contrast, the domestic market remains slow to recover. ⚫ Demand in the emerging countries including India is growing and measures are strengthened to capture demand. Magnesium molding machines ⚫ The adoption of magnesium components continues due to the increasing need for lightweight car bodies due to the electrification of automobiles. Laser application equipment ⚫ Demand related to gen-8 OLED / LCD products for FPDs remain high and will focus on capturing such demand with F-ELA equipment.
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© The Japan Steel Works, Ltd. All Rights Reserved. 23 Material Revolution, making the world sustainable and prosperous. Material and Engineering Business – Market sentiment for the main products Material and Engineering Business Market sentiment (FY2024 comparison) Economic conditions from the perspectives of order acquisition Steel forgings and plates ⚫ Demand for rotor shafts for steam turbines and generators is increasing for both high-efficiency thermal power plants, such as GTCCs, and nuclear power plants. Inquiries are active both in Japan and overseas. ⚫ Inquiries for nuclear power products remain strong, mainly driven by demand in Europe. In addition to SMRs, demand for casks continues, supported by the accelerated domestic reactor restarts. Engineering, etc. ⚫ Respond to the growing demand in the Industrial Machinery Products Business while actively receiving orders for external inspection works.
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© The Japan Steel Works, Ltd. All Rights Reserved. 24 Material Revolution, making the world sustainable and prosperous. FY2025 FY2026 FY2027 FY2028 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half No.3 Machining Shop No.4 Machining Shop Scheduled to begin operation at the end of FY2025 Construction/equipment installation etc. No. 3 Machining Shop (Building completed: Oct. 2025) No. 4 Machining Shop (Left: Rendering / Right: Current situation) 1.0 1.9 2.4 22.3期 23.3期 24.3期 25.3期 26.3期 予想 27.3期 予想 28.3期 予想 29.3期 予想 Sales of plastic production machinery (pelletizers + twin-screw extruders) (Index: FY2021=1.0) 1.0 1.2 1.9 22.3期 23.3期 24.3期 25.3期 26.3期 予想 27.3期 予想 28.3期 予想 29.3期 予想 FY2021 FY2022 FY2023 FY2024 FY2025 Forecast FY2026 Forecast FY2027 Forecast FY2028 Forecast ■Pelletizers ■Twin-screw extruders FY2021 FY2022 FY2023 FY2024 FY2025 Forecast FY2026 Forecast FY2027 Forecast FY2028 Forecast Sales of the after-sales services business for plastic production and processing machineries (Index: FY2021=1.0) Plastic Production and Processing Machinery – Progress and outlook of investment in Hiroshima Plant Plastic production and processing machinery Hiroshima plant – Investment for enhancing production capacity and in-house production Scheduled to begin operation from FY2027 1H ◼ Demand for pelletizers and twin-screw extruders is stagnant, primarily due to delayed investment decisions in China. In addition to capturing its limited projects, pursue projects in emerging countries, including India. ◼ Demand for film and sheet manufacturing equipment for separators remains stagnant. Aim to capture demand for other functional films, including those for capacitors and barrier packaging materials. ◼ After-sales services business is growing steadily, and the sales progress is exceeding the mid-term plan projection. ◼ The building for No.3 Machining Shop completed in October. As a model factory for the promotion of smart factory, automated and unmanned equipment is to be installed and will start operation at the end of FY2025. ◼ Aim to increase in-house production and improve profitability by boosting parts machining capacity, as well as expanding the growth of after-sales services.
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© The Japan Steel Works, Ltd. All Rights Reserved. 25 Material Revolution, making the world sustainable and prosperous. Global Expansion Indian market – The Experience Centre ◼ The Experience Centre opened on September 27. It displays actual twin- screw extruders and injection molding machines. Further, information on a variety of our industrial machinery products including press machines for printed circuit boards are available and engineers are stationed. We will raise our presence within India. ◼ On October 28, we held our first technology seminar for local customers, allowing them to experience our global standard twin-screw extruder, “TEX44αR” in person. We newly assigned dedicated sales personnel to capture the expanding demand for mid-to-high-end machines. Extruder and injection molding machine Experience Centre ↑↓TEX seminar 1.0 1.1 1.3 1.3 23.3期 24.3期 25.3期 26.3期 見通し Molding machines – Respond to the expanding Indian / Southeast Asian market ◼ In India, the manufacturing industry is advancing lead by the Make in India policy, leading to a medium-term increase in imports of high-end electric molding machines from Japan. In addition to the automotive demand, the demand for containers / daily goods, which we have a high share, is growing according to the change of lifestyle and is expected to continue. ◼ In Southeast Asia, the recovery of demand is seen as frameworks in response to the U.S. tariff policies are being concluded. ◼ Aim to capture the expanding demand by establishing the Experience Centre in India and strengthening our sales network in India and Southeast Asia. Indian market – Trend in the number of injection molding machines imported from Japan (Index: FY2022=1.0) FY2022 FY2023 FY2024 FY2025 Forecast (prepared by the company based on various information) ■Automotive ■Home appliances/OA/Electronic devices ■Containers/Daily goods ■Medical ■Others
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© The Japan Steel Works, Ltd. All Rights Reserved. 26 Material Revolution, making the world sustainable and prosperous. Maritime firing test of the railgun prototype (Source: X (formerly Twitter) account of ATLA) Delivered the first unit in Sep. 2025 Subsequent deliveries are being made 24.1 32.2 45.5 51.0 80.0 24.3期 実績 25.3期 実績 26.3期 予想 27.3期 中計 29.3期 中計 防衛関連機器 売上高推移・見通し (Unit: Billion Yen) Production capacity expansion through optimization of manufacturing locations and mutual complementation Defense Equipment – Production capacity expansion through optimization of manufacturing locations and mutual complementation on track Hiroshima Plant Yokohama Plant ◼ As the final assembly plant for defense equipment, we are expanding production capacity to meet increasing demand. Meiki Plant ◼ Established production system to prepare for the increase of defense equipment demand and started production.Construction progressing as planned Muroran Plant ◼ Responding to the increased demand of defense equipment, such as artilleries, as a material development and manufacturing plant. ◼ Established production system for wheeled armored vehicles (AMV) and started shipping in September. ◼ Building new production lines to respond to the increased demand of missile canisters. As of May 2025 Current situation (construction to be completed in Jan. 2026) Delivered the first AMV R&D of the railgun Net sales of defense equipment FY2023 FY2024 FY2025 Forecast FY2026 Forecast FY2028 Forecast
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© The Japan Steel Works, Ltd. All Rights Reserved. 27 Material Revolution, making the world sustainable and prosperous. We have initiated the major expansion plan of the production capacity for both thermal and nuclear power products to meet the long-term demand growth, based on the market environment and inquiries received.Component for casks for transport / storage of spent fuel Thermal and Nuclear Power Products – Market Environment Market trend of nuclear power products Demand for thermal power products (turbines and generator components) stays strongTrend by country Japan Cabinet Decision was made on the 7th Strategic Energy Plan in Feb. 2025. Based on the premise of ensuring safety, the plan accelerates the restart of nuclear power plants and the installation of next-gen innovative nuclear reactors. Demand driven by the increasing / accelerating restarts is remains firm. EU U.K. The plan is to secure a maximum nuclear capacity of 24GW by 2050. Total of 4 EPR units for Hinkley Point C and Sizewell C are under construction. Further projects for similar sized power plants, including the nationalized Wylfa, are planned. France We are continuing to receive orders for the subsequent projects related to the plan to build 6 EPR-2 units and are making steady progress. Other Poland: Plan to construct 3 units of AP1000 for operation in 2033 and after. Bulgaria: Plan to construct 2 units of AP1000. North America Replacement demand for steam turbines and generators for existing plants continue in the U.S. Plans for 10 new AP1000 units, along with SMRs, are also underway. In Canada, SMR construction plan is in progresses. China Active investment continues since 2022. Around 5-10 new units of power plant constructions per year are expected to be approved for construction through 2030. ◼ In Europe, large-scale nuclear reactor projects are progressing steadily. We continue to receive orders for components for French projects in FY2025. ◼ In the U.S., new construction plans are increasing and expectations as one of our future market is rising. ◼ Restart plans for existing domestic plants are accelerating and demand for cask components for the transport / storage of spent fuel remains firm. ◼ Demand for rotor shafts for high-efficiency thermal power generation, including those for GTCCs continues to be strong. ◼ The extension of operation license of existing nuclear power plants is pushing up the continuing demand for replacement of extra-large scale steam turbines and generators. 1.0 1.5 26.3期 27.3期 予想 28.3期 予想 29.3期 予想 ロータシャフトの需要見通し （出荷本数ベース） Rotor shaft demand outlook (Based on the number of delivery) FY2025 Forecast FY2026 Forecast FY2027 Forecast FY2028 Forecast
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© The Japan Steel Works, Ltd. All Rights Reserved. 28 Material Revolution, making the world sustainable and prosperous. FY2025 FY2026 FY2027 2nd Half 1st Half 2nd Half 1st Half 2nd Half Manipulator Large-scale lathe Remelting equipment (ESR) Add material handling equipment (manipulator) to help improve the forging operation efficiency of rotor shafts and also contribute to the production capacity of nuclear products. Forging Upgrade the remelting equipment (ESR: Electroslag Remelting) necessary for manufacturing components for nuclear and high-efficiency power plants Steel making Add large-scale lathe to meet the continuing high demand for large- scale rotor shafts. Machining Through the investments, production capacity for rotor shafts for steam turbines / generators will increase by 1.5 times the current level. We will also increase personnel to achieve long- term growth in the Material Business, centered on thermal and nuclear power products. Operation Equipment design / manufacture / installation etc. Building expansion, equipment assembly etc. Relocation of existing equipment / foundation work etc. Electric furnace Ingot making Remelting equipment (high quality steel) Steelmaking Forging Heat treatment Machining Thermal and Nuclear Power Products – Investment for the expansion of production capacity Manufacturing process for thermal and nuclear products (rough image)
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© The Japan Steel Works, Ltd. All Rights Reserved. 29 Material Revolution, making the world sustainable and prosperous. ◼ Operation start: FY2026 2nd half (tentative) ◼ Location: Kashiwa-shi, Chiba ◼ Site area: 11,265.5 ㎡ ◼ No. of employees: planned to be approx. 100 (as of operation start: approx. 30) *1 Intellectual Property Executive (IPE) Structure: A system in which an intellectual property manager is assigned to each business division to formulate an intellectual property strategy based on the business strategy Establishment of a New R&D Center Decided on the establishment of a New R&D Center (tentative name) Development of elemental technologies in laboratories established at the three plants Strengthen existing products and resolve materiality by deepening core technologies through elemental technology development in close collaboration with plants. Formulation and implementation of a business-specific intellectual property strategy Formulate and implement a strategy that creates value in each business from an intangible asset utilization perspective through a company-wide IPE structure.*1 Sustained development of R&D personnel and strengthening of technological capabilities Strengthen partnerships with universities and research institutes in Japan and overseas to promote sustainable human resource development and technological advancement by earning a doctorate degree, etc. Creating innovative technologies Deepening core technologies Strengthen existing businesses by developing elemental technologies Create innovative technologies through basic technology research Planning to establish a new R&D center to develop innovative technologies Establish a new laboratory within the medium-term plan period that is not attached to a plant, and that conducts research and development of innovative technologies that do not adhere to existing products or core technologies Creating innovation by leveraging diverse human resources Encourage the creation of innovative technologies and new businesses through the accumulation of diverse human resources (values) from inside and outside the company and the promotion of entrepreneurship. Efficient new product and market development through IP analysis*2 Examine the company’s strengths, market trends, and R&D direction through IP analysis to efficiently develop new products and new markets. *2 IP analysis: IP landscape: Analysis of management and business information incorporating IP information Advanced Technology Laboratory (Hiroshima Plant) Device Technology Laboratory (Yokohama Plant) Material Technology Laboratory (Muroran Plant) New R&D Center (tentative name) (Kashiwa) Creating and nurturing new businesses
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© The Japan Steel Works, Ltd. All Rights Reserved. 30 Material Revolution, making the world sustainable and prosperous. JSW Core competence Melting, Mixing, and Solidifying + Machine Element + Precision Control Former R&D Center (1989-2000) Developed technologies (year commercialized) Excimer laser annealing equipment (1995) Magnesium injection molding machine (1995) Crystal growth / Railgun AI / IoT Development of elemental technologies for the enhancement of products / businesses New R&D Center (tentative name) (2027-) Plastic production and processing machine Magnesium injection molding machine Defense equipment Large-scale / heat-resistant forged steel components Clad steel plate Crystal Laser annealing equipment Plasma deposition system Device Technology Laboratory - Yokohama Plant Advanced Technology Laboratory - Hiroshima Plant Material Technology Laboratory - Muroran Plant Main products Market Model based development ControlMachine element Laser application Plasma Deposition system Crystal growth Material development Examples of development for solving social issues High-speed communication Energy efficiency Advanced mono-material performance Harsh environment resistant system / material Materiality Contribution to a low-carbon society Contribution to a super-smart society Realization of a plastic resource- recycling society Anticipated social issues Economic / national security and others Challenging various social issues Strengthen the existing businessesCreate innovative technology Chemical (plastic) Automotive Electronic device Home appliance National security Information and communication Electronic Semiconductor Power generation / energy Electronic device material Establishment of a New R&D Center
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© The Japan Steel Works, Ltd. All Rights Reserved. 31 Material Revolution, making the world sustainable and prosperous. Reference Materials
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© The Japan Steel Works, Ltd. All Rights Reserved. 32 Material Revolution, making the world sustainable and prosperous. Trends in Sales and Profit （Unit: Billion Yen) FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Net sales 217.5 198.0 213.7 238.7 252.5 248.5 Industrial Machinery Products Business 171.4 156.3 171.1 202.9 208.3 199.0 Plastic production and processing machinery 61.3 58.8 62.1 92.2 102.7 72.2 Molding machines 65.3 54.5 65.3 65.8 58.7 66.9 Defense equipment ‐ - - 23.8 24.1 32.2 Others 44.8 43.0 43.7 21.1 22.8 27.7 Material and Engineering Business 42.8 38.5 40.0 33.9 41.9 47.1 Steel Forgings and plates 19.6 19.9 25.4 24.9 33.0 38.4 Clad steel plates and pipes 12.8 10.5 6.0 - - - Engineering, etc. 10.4 8.1 8.6 9.0 8.9 8.7 Other Businesses 3.2 3.1 2.6 1.8 2.2 2.4 Operating income 18.7 10.2 15.4 13.8 18.0 22.8 Industrial Machinery Products Business 19.2 13.9 17.7 18.9 20.4 17.5 Material and Engineering Business 2.7 1.8 1.3 (8) 3.2 8.6 Other Businesses (0.4) 0.0 0.0 (4) 0.0 0.1 Profit attributable to owners of parent 9.3 6.8 13.9 11.9 14.2 17.9
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© The Japan Steel Works, Ltd. All Rights Reserved. 33 Material Revolution, making the world sustainable and prosperous. Trends in Main Assets and Cash Flows （Unit: Billion Yen) FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Total assets 297.1 316.2 339.7 348.3 366.7 398.1 Net assets 132.4 141.9 151.0 160.6 178.6 195.1 Net assets per share (Yen) * * Since FY2016, amounts are after reserve -> reverse split of stocks 1,778.94 1,908.76 2,031.29 2,162.18 2,404.83 2,625.13 Equity ratio (%) 44.0 44.4 44.0 45.7 48.3 48.5 Return on equity (%) 7.2 5.1 9.6 7.8 8.5 9.7 Operating cash flow 18.9 14.7 22.3 (0.9) 21.7 (4.5) Investing cash flow (13.1) (3.2) (2.9) 0.9 (6.8) (12.2) Financing cash flow (6.1) 2.7 (2.8) (20.1) (4.8) (5.7) Cash and cash equivalents at end of the period 74.4 88.7 105.7 86.4 96.9 75.1
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© The Japan Steel Works, Ltd. All Rights Reserved. 34 Material Revolution, making the world sustainable and prosperous. Corporate philosophy, starting with purpose Value Creation Process How can JSW Group provide value to realize the Vision? JSW Group will further refine its core competence, develop industrial machinery and new materials that solve social issues, and supply them to the world, thereby simultaneously creating social value and enhancing sustainable corporate value. Purpose What is the JSW Group’s value? Material Revolution, Making the world sustainable and prosperous. Vision What will JSW Group aim for? Benefiting all stakeholders by developing and implementing industrial machinery and new materials that solve social issues. Group Machine Element and Precision Control JSW Group Core Competence Melting, Mixing, and Solidifying
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© The Japan Steel Works, Ltd. All Rights Reserved. 35 Material Revolution, making the world sustainable and prosperous.