Interim report
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1 DISCLAIMER: This document has been translated from a part of 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 10, 2025 Summary of Consolidated Financial Results for the Six Months Ended September 30, 2025 (Under Japanese GAAP) Company name: The Japan Steel Works, Ltd. Listing: Tokyo Stock Exchange Securities code: 5631 URL: https://www.jsw.co.jp/ Representative: Toshio Matsuo, Representative Director & President Inquiries: Please refer to the website. Telephone: +81-3-5745-2001 Scheduled date to file semi-annual securities report: November 13, 2025 Scheduled date to commence dividend payments: December 11, 2025 Preparation of supplementary material on financial results: None Holding of financial results briefing: Yes (For Securities Analysts and Institutional Investors) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the six months ende d September 30, 2025 (from April 1, 2025 to September 30, 2025) (1) Consolidated operating results (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, 2025 135,662 25.3 12,192 47.1 12,647 47.0 10,092 67.9 September 30, 2024 108,277 (1.7) 8,289 43.3 8,602 26.8 6,009 26.2 Note: Comprehensive income For the six months ended September 30, 2025: ¥11,910 million [88.3%] For the six months ended September 30, 2024: ¥6,325 million [(0.4)%] Basic earnings per share Diluted earnings per share Six months ended Yen Yen September 30, 2025 137.11 - September 30, 2024 81.65 - (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % September 30, 2025 393,614 202,929 51.2 March 31, 2025 398,122 195,101 48.5 Reference: Equity As of September 30, 2025: ¥201,624 million As of March 31, 2025: ¥193,220 million 2. Cash dividends Annual dividends per share First quarter-end Second quarte r-end Third quarte r-end Fiscal yea r-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 - 38.00 - 48.00 86.00 Fiscal year ending March 31, 2026 - 44.00 Fiscal year ending March 31, 2026 (Forecast) 44.00 88.00 Note: Revisions to the forecast of cash dividends most recently announced: None 3. Forecast of consolidated financial results for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026) (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 Fiscal year ending March 31, 2026 290,000 16.7 24,500 7.3 24,500 4.3 18,500 3.0 251.34 Note: Revisions to the earnings forecasts most recently announced: None
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2 * Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specif ic to the preparation of semi-annual consolidated financial statements:None (3) Changes in accounting policies, change s in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policie s 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, 2025 74,415,909 shares As of March 31, 2025 74,408,985 shares (ii) Number of treasury shares at the end of the period As of September 30, 2025 805,015 shares As of March 31, 2025 804,900 shares (iii) Average number of shares outstanding during the period(cumulative from the beginning of the fiscal year) Six months ended September 30, 2025 73,606,626 shares Six months ended September 30, 2024 73,598,983 shares * Semi-annual financial results reports are exempt from revi ew conducted by certified public accountants or an audit firm. * Other special matters The Company plans to hold an earnings briefing for securities analysts and institutional investors on Friday, November 14, 2025. The financial results briefing materials used in the briefing are scheduled to be posted on the Company's website after 11 a.m. on the day of the meeting.
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3 Semi-annual consolidated balance sheet (Millions of yen) As of March 31, 2025 As of September 30, 2025 Assets Current assets Cash and deposits 75,899 77,930 Notes and accounts receivable - trade 60,398 44,698 Electronically recorded monetary claims - operating 7,729 4,816 Merchandise and finished goods 5,894 5,132 Work in process 113,654 116,098 Raw materials and supplies 10,980 11,031 Other 21,276 24,643 Allowance for doubtful accounts (237) (219) Total current assets 295,595 284,131 Non-current assets Property, plant and equipment Buildings and structures, net 26,427 26,210 Machinery, equipment and vehicles, net 13,533 13,204 Other, net 15,661 21,445 Total property, plant and equipment 55,622 60,859 Intangible assets Other 2,240 3,061 Total intangible assets 2,240 3,061 Investments and other assets Investment securities 24,629 27,226 Other 20,348 18,645 Allowance for doubtful accounts (313) (311) Total investments and other assets 44,664 45,560 Total non-current assets 102,527 109,482 Total assets 398,122 393,614
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4 (Millions of yen) As of March 31, 2025 As of September 30, 2025 Liabilities Current liabilities Notes and accounts payable - trade 29,545 22,250 Electronically recorded obligations - operating 29,647 17,380 Short-term borrowings 12,473 12,528 Current portion of long-term borrowings 10,299 299 Income taxes payable 4,604 3,533 Contract liabilities 56,596 52,575 Provision for loss on wind power generator business 486 486 Provision for business restructure 1,455 1,455 Other provisions 916 1,166 Other 21,611 18,951 Total current liabilities 167,637 130,627 Non-current liabilities Long-term borrowings 19,440 44,291 Provisions 39 33 Retirement benefit liability 7,791 7,974 Asset retirement obligations 1,446 1,447 Other 6,664 6,310 Total non-current liabilities 35,383 60,056 Total liabilities 203,020 190,684 Net assets Shareholders' equity Share capital 19,837 19,865 Capital surplus 5,569 5,580 Retained earnings 154,059 160,618 Treasury shares (2,317) (2,319) Total shareholders' equity 177,149 183,745 Accumulated other comprehensive income Valuation difference on available-for-sale securities 7,845 10,925 Deferred gains or losses on hedges 7 (41) Foreign currency translation adjustment 3,117 2,133 Remeasurements of defined benefit plans 5,101 4,860 Total accumulated other comprehensive income 16,071 17,878 Non-controlling interests 1,881 1,305 Total net assets 195,101 202,929 Total liabilities and net assets 398,122 393,614
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5 Semi-annual consolidated statement of income (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Net sales 108,277 135,662 Cost of sales 81,870 103,765 Gross profit 26,406 31,897 Selling, general and administrative expenses 18,116 19,705 Operating profit 8,289 12,192 Non-operating income Interest income 51 92 Dividend income 369 473 Foreign exchange gains - 181 Gain on non-current assets rent 136 120 Share of profit of entities accounted for using equity method 6 17 Miscellaneous income 196 234 Total non-operating income 762 1,119 Non-operating expenses Interest expenses 121 293 Foreign exchange losses 187 - Commission expenses 2 221 Miscellaneous losses 138 148 Total non-operating expenses 449 664 Ordinary profit 8,602 12,647 Extraordinary income Gain on sale of non-current assets 13 11 Gain on sale of investment securities - 1,706 Total extraordinary income 13 1,717 Extraordinary losses Loss on sale of non-current assets 209 - Loss on retirement of non-current assets 280 379 Loss on inappropriate conduct in quality inspections 44 - Total extraordinary losses 534 379 Profit before income taxes 8,081 13,986 Income taxes - current 2,930 3,698 Income taxes - deferred (950) 145 Total income taxes 1,980 3,844 Profit 6,100 10,141 Profit attributable to non-controlling interests 91 49 Profit attributable to owners of parent 6,009 10,092
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6 Semi-annual consolidated statement of comprehensive income (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Profit 6,100 10,141 Other comprehensive income Valuation difference on available-for-sale securities (1,006) 3,080 Deferred gains or losses on hedges (255) (48) Foreign currency translation adjustment 1,678 (1,022) Remeasurements of defined benefit plans, net of tax (191) (240) Total other comprehensive income 224 1,769 Comprehensive income 6,325 11,910 Comprehensive income attributable to Comprehensive income attributable to owners of parent 6,191 11,899 Comprehensive income attributable to non-controlling interests 134 11