Interim report
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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. August 3, 2026 Summary of Consolidated Financial Results for the Three Months Ended June 30, 2026 (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: Kenji Terada, General Manager, General Affairs Department Telephone: +81-3-5745-2001 Scheduled date to commence dividend payments: - Preparation of supplementary material on financial results: Yes Holding of financial results briefing: None (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, 2026 58,172 (13.9) 5,865 11.2 6,114 8.8 5,932 35.4 June 30, 2025 67,544 41.9 5,272 23.5 5,618 16.6 4,381 20.9 Note: Comprehensive income For the three months ended June 30, 2026: ¥4,967 million [17.1%] For the three months ended June 30, 2025: ¥4,240 million [0.9%] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30, 2026 80.60 - June 30, 2025 59.53 - Note: EBITDA = Operating profit + Depreciation and Amortization EBITDA margin = EBITDA / Net sales (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % June 30, 2026 423,839 215,263 50.4 March 31, 2026 429,983 213,831 49.4 Reference: Equity As of June 30, 2026: ¥213,785 million As of March 31, 2026: ¥212,431 million 2. Cash dividends 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 March 31, 2026 - 44.00 - 48.00 92.00 Fiscal year ending March 31, 2027 - Fiscal year ending March 31, 2027 (Forecast) 46.00 46.00 92.00 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, 2027 (from April 1, 2026 to March 31, 2027) (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, 2027 310,000 12.8 27,000 6.7 26,000 (0.2) 19,000 (1.2) 258.11 Note: Revisions to the earnings forecasts most recently announced: None
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* Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None (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 June 30, 2026 74,415,909 shares As of March 31, 2026 74,415,909 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 805,245 shares As of March 31, 2026 805,130 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 73,610,706 shares Three months ended June 30, 2025 73,604,079 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm:None * Proper use of earnings forecasts, and other special matters Forward-looking statements, such as earnings forecasts, contained in this material are forecasts judged by the Company based on information available at the time of publication, and are not intended to be a promise by the Company to realize them. Actual financial results, etc. may differ substantially due to various factors.
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Quarterly consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 77,763 75,995 Notes and accounts receivable - trade 63,815 47,931 Electronically recorded monetary claims - operating 3,792 3,873 Merchandise and finished goods 4,532 4,823 Work in process 123,325 133,953 Raw materials and supplies 11,499 12,647 Other 27,074 29,734 Allowance for doubtful accounts (204) (207) Total current assets 311,599 308,753 Non-current assets Property, plant and equipment Buildings and structures, net 32,886 32,534 Machinery, equipment and vehicles, net 18,218 17,813 Other, net 18,648 20,193 Total property, plant and equipment 69,754 70,541 Intangible assets Other 3,734 4,064 Total intangible assets 3,734 4,064 Investments and other assets Investment securities 26,484 23,401 Other 18,720 17,388 Allowance for doubtful accounts (309) (310) Total investments and other assets 44,895 40,479 Total non-current assets 118,384 115,085 Total assets 429,983 423,839
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(Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 24,559 27,400 Electronically recorded obligations - operating 3,787 4,597 Short-term borrowings 11,683 11,560 Current portion of long-term borrowings 299 10,295 Income taxes payable 3,517 1,725 Contract liabilities 56,751 51,830 Provision for loss on construction contracts 2,715 445 Provision for loss wind power generator business 486 486 Provision for business restructure 1,372 1,372 Other provisions 248 261 Other 23,632 22,635 Total current liabilities 129,052 132,610 Non-current liabilities Long-term borrowings 74,141 64,070 Provisions 35 36 Retirement benefit liability 5,370 4,351 Asset retirement obligations 1,455 1,462 Other 6,095 6,044 Total non-current liabilities 87,099 75,965 Total liabilities 216,151 208,576 Net assets Shareholders' equity Share capital 19,865 19,865 Capital surplus 5,580 5,580 Retained earnings 166,527 168,927 Treasury shares (2,320) (2,321) Total shareholders' equity 189,653 192,051 Accumulated other comprehensive income Valuation difference on available-for-sale securities 11,552 10,359 Deferred gains or losses on hedges 147 412 Foreign currency translation adjustment 3,319 3,434 Remeasurements of defined benefit plans 7,759 7,528 Total accumulated other comprehensive income 22,778 21,733 Non-controlling interests 1,400 1,477 Total net assets 213,831 215,263 Total liabilities and net assets 429,983 423,839
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Quarterly consolidated statement of income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 67,544 58,172 Cost of sales 52,268 42,211 Gross profit 15,275 15,960 Selling, general and administrative expenses 10,002 10,095 Operating profit 5,272 5,865 Non-operating income Interest income 41 46 Dividend income 448 406 Foreign exchange gains 132 38 Gain on non-current assets rent 61 67 Share of profit of entities accounted for using equity method 11 - Miscellaneous income 95 163 Total non-operating income 790 721 Non-operating expenses Interest expenses 147 327 Share of loss of entities accounted for using equity method - 11 Miscellaneous losses 297 133 Total non-operating expenses 445 472 Ordinary profit 5,618 6,114 Extraordinary income Gain on sale of non-current assets 8 - Gain on sale of investment securities 209 2,057 Total extraordinary income 217 2,057 Extraordinary losses Loss on retirement of non-current assets 96 179 Loss on valuation of membership - 5 Total extraordinary losses 96 185 Profit before income taxes 5,739 7,986 Income taxes - current 2,239 1,757 Income taxes - deferred (904) 206 Total income taxes 1,334 1,964 Profit 4,404 6,021 Profit attributable to non-controlling interests 23 88 Profit attributable to owners of parent 4,381 5,932
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Quarterly consolidated statement of comprehensive income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 4,404 6,021 Other comprehensive income Valuation difference on available-for-sale securities 1,016 (1,193) Deferred gains or losses on hedges (37) 264 Foreign currency translation adjustment (1,022) 104 Remeasurements of defined benefit plans, net of tax (120) (230) Total other comprehensive income (163) (1,053) Comprehensive income 4,240 4,967 Comprehensive income attributable to Comprehensive income attributable to owners of parent 4,266 4,888 Comprehensive income attributable to non-controlling interests (26) 79