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Corporate Strategy Briefing ©️ DOWA HOLDINGS CO., LTD. 1 November 21, 2025 First Half of FY2025 (FY Ending March 2026)
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Full-Year Forecasts for FY2025 (Year-on-year comparison) ©️ DOWA HOLDINGS CO., LTD. 2 In the first half, revenue and profit declined due to reduced sales of silver powder, derivative valuation losses, and worsening purchasing conditions for zinc raw materials. For the second half, the company expects rising metal prices, an increase in orders for waste treatment services, and higher sales of copper alloy products for automobiles. Accordingly, full-year ordinary profit is planned to be in line with the previous year. Billion yen FY2025 H1 Result FY2025 H2 Forecasts FY2025 Full-Year ForecastsYear on Year Year on Year Year on Year Net Sales 317.1 (35.4) 378.8 +52.7 696.0 +17.3 Operating Profit 11.7 (9.7) 1６.７ +6.5 28.5 (3.7) Ordinary Profit 15.6 (11.3) 27.3 +10.6 43.0 (0.5) By Segment Environmental Management & Recycling 6.1 (1.5) 7.8 +0.6 14.0 (0.9) Nonferrous Metals 4.4 (7.8) 14.6 +9.6 19.1 +1.9 Electronic Materials (0.5) (1.7) (0.9) +0.0 (1.5) (1.8) Metal Processing 2.4 (1.3) 3.4 +1.2 5.9 (0.0) Heat Treatment 1.0 +0.3 1.1 (0.4) 2.2 +0.0 Other/ Eliminations 1.9 +0.7 1.3 (0.5) 3.3 +0.2 Profit attributable to owners of parent 13.6 (6.8) 17.3 10.7 31.0 +3.8 Annual dividends per share - - - - 183 yen +33 yen Operating Profit Ordinary Profit （billion yen) （billion yen) 21.4 12.8 11.7 10.7 11.2 17.2 32.2 24.0 29.0 0.0 10.0 20.0 30.0 40.0 Results on May. 13 on Nov. 12 FY2024 FY2025 Forecasts 26.9 15.3 15.6 16.6 18.7 27.3 43.5 34.0 43.0 0.0 10.0 20.0 30.0 40.0 50.0 Results on May. 13 on Nov. 12 FY2024 FY2025 Forecasts
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Analysis of Changes in Ordinary Profit Forecast for FY2025 (Compared to Initial Plan) ©️ DOWA HOLDINGS CO., LTD. 3 43.0 34.0 2.6 1.1 8.1 1.6 (0.3) (4.6) 0.3 25.0 30.0 35.0 40.0 45.0 Latest forecasts Equity method income Sales expansion Metal Prices Forex Others Sales reduction FY2025 H1 Initial forecasts (billion yen) Analysis of Changes in Ordinary Profit Forecasts for FY2025 H2 (Compared to Initial Plan) 0 Key Factors Behind Increase/ Decrease (H1) - Despite recording a one-time valuation loss from derivative valuation, profit increased by 300 million yen due to higher metal prices and increased treatment of hazardous waste. Key Factors Behind Increase/ Decrease (H2) - Sales of silver powder for solar panels, as well as free metal incomes in the Nonferrous Metals segment centered on zinc and PGMs, are expected to decrease. - Improvement in electricity costs, increase in hedging costs in the Electronic Materials segment. - The Nonferrous Metals segment and the Electronic Materials segment are expected to benefit from the weaker yen. - Both precious metal and base metal prices are rising significantly. - In the Electronic Materials segment, onerous sample cost income of new products is increasing. - Profit of entities accounted for using equity method from overseas zinc mines is increasing due to higher metal prices. Profit is expected to increase by 9.0 billion yen as compared to the initial plan.
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Progress of Medium-Term Plan 2027 ©️ DOWA HOLDINGS CO., LTD. 4 Creation of Value Strengthening Growth Businesses and Developing New Businesses and Products
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Environmental Management & Recycling | Business Overview for FY2025 5©️ DOWA HOLDINGS CO., LTD. Business Strategy （From the Second Half of FY2025 Onward） Trends in Major Products and Services （FY2023 H1=100） Waste treatment orders received in Southeast Asia Volume of treated waste in Japan Volume of recycled used home electronic appliances Net Sales and Ordinary Profit - Collection volume of PCB waste is on a declining trend as the March 2027 treatment deadline approaches. We will work to compensate for this decline by increasing the treatment of hazardous waste. - To address growing domestic demand for recycling, comprehensive recycling centers will be established in Kumamoto and Tochigi to expand the business. - In Indonesia, we will focus on securing orders for waste generated by strong oil development activity. In Thailand and Singapore, we will strengthen its business foundation, including proactive capital investment, with a view to future business growth. 5.8 5.9 7.7 6.1 5.7 6.1 5.2 7.1 7.8 7.3 11.9 11.1 14.9 14.0 13.0 148.0 150.3 180.1 198.0 192.7 0 5 10 15 20 25 0 50 100 150 200 FY2022 FY2023 FY2024 FY2025 Forecasts Initial Forecasts Ordinary Profit in H2 Ordinary Profit in H1 Net sales 100 96 101 94 99 100 102 80 90 100 110 120 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 100 100 98 93 101 96 108 80 90 100 110 120 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 100 109 107 131 114 141 136 80 100 120 140 160 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 （billion yen) Medium- term Plan 2027
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Strengthening Growth Businesses | Environmental Management & Recycling : Establishment of Kumamoto Plant 6©️ DOWA HOLDINGS CO., LTD. - Kyushu Region： One of Japan’s leading production base for semiconductors, electronic components, and automobiles, and a leading region for solar power generation. - In August 2025, we established a comprehensive recycling center (DOWA Eco-System’s Kumamoto Site) in Kumamoto Prefecture, which is located in the centre of Kyushu. By expanding the scope and scale of our business and strengthening material recycling, we aim to enhance the profitability of our recycling operations while realizing true circularity in the Kyushu region.
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Nonferrous Metals | Business Overview for Fiscal Year 2025 7©️ DOWA HOLDINGS CO., LTD. Trends in Major Products and Services （FY2023 H1=100） Volume of zinc producedVolume of collected recycling materials Volume of collected spent catalysts Business Strategy （From the Second Half of FY2025 Onward） Net Sales and Ordinary Profit - Utilizing the new collection base in North America, we will work to increase the collection of spent catalysts and expand PGMs production volumes. - With operations resuming at the Tizapa Mine, procurement of zinc raw materials for AKITA ZINC will return to normal. We will work to recover zinc production volumes and improve the quality of raw materials supplied to KOSAKA SMELTING & REFINING. - At KOSAKA SMELTING & REFINING, part of the equipment repairs originally planned for FY2026 have been completed ahead of schedule in the first half of FY2025. We will work to increase the processing of recycling materials. 23.5 9.5 12.2 4.4 6.4 9.5 8.6 4.9 14.6 4.6 33.1 18.2 17.1 19.1 11.0 433.6 317.8 266.3 342.0 309.3 0 10 20 30 40 50 0 100 200 300 400 500 FY2022 FY2023 FY2024 FY2025 Forecasts Initial Forecasts ordinary income in H2 Ordinary Profit in H1 Net sales 100 97 103 105 95 94 107 80 90 100 110 120 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 100 84 97 82 113 104 164 60 100 140 180 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 100 133 105 104 98 134 128 80 100 120 140 160 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 （billion yen)
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Electronics Materials | Business Overview for Fiscal Year 2025 8©️ DOWA HOLDINGS CO., LTD. Trends in Major Products and Services （FY2023 H1=100） Onerous sample cost income Volume of sales of LEDs and PDs (Red/ Infrared/ Short-wavelength-Infrared) Volume of sales of silver powder Business Strategy （From the Second Half of FY2025 Onward） Net Sales and Ordinary Profit - New projects for short-wavelength-Infrared LEDs and PDs will be secured as planned, and development will continue with the goal of winning next- generation projects. - For silver powder used in solar panels, the price gap between international silver bullion prices and domestic Chinese prices cannot be overcome through quality advantages. Therefore, the business turnaround strategy will be reassessed. - To improve overall profitability in the segment, we will expand onerous sample cost income from complex oxide powder, for which demand is increasing unexpectedly, as well as from nano-silver powder. 3.8 1.7 1.2 (0.5) (0.6) 0.6 1.7 (0.9) (0.9) 0.7 4.5 3.5 0.3 (1.5) 0.1 138.2 183.1 164.8 82.0 116.9 (5) (3) 0 3 5 8 10 -100 -50 0 50 100 150 200 FY2022 FY2023 FY2024 FY2025 Forecasts Initial Forecasts Ordinary Profit in H2 Ordinary Profit in H1 Net sales 100 96 102 100 107 82 103 60 80 100 120 140 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 100 125 98 46 21 14 82 0 40 80 120 160 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 100 69 47 51 118 206 274 0 100 200 300 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 （billion yen)
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Strengthening Growth Businesses | Electronics Materials : Restructuring of Revenue Base 9©️ DOWA HOLDINGS CO., LTD. Electronic Materials Business Restructuring Measures in Medium-Term Plan 2027 Progress of Large-scale LEDs and PDs Projects (for Wearable Devices) Project Before FY2023 FY2023 FY2024 FY2025 FY2026 Old Generation FY2019 Started development FY2021 Mass production Mass production Mass production Expected to be discontinued - New Projects for FY2025 Trial production Technical qualification Product qualification Start mass production (Completed) Mass production New Projects for FY2026 Trial production Trial production Technical qualification Product qualification Start mass production (Expected) 0.0 0.5 1.0 1.5 2024 2025 2026 2027 Sales Ratio for LED/PD (FY2024=1.0) New Projects for FY2026 New Projects for FY2025 Old Generation Others “Acquisition of large-scale LEDs and PDs projects” is progressing as planned. - New projects for FY2025 have been secured as planned, with mass production starting in June 2025. Revenue levels are on a recovery trend. - For new projects in FY2026, sample work is underway toward adoption. - Capture demand for solar panel applications through the development of new conductive powders such as silver powder. - Acquisition of large-scale projects in LEDs and PDs (FY2025, FY2026). - Control costs through a review of the development framework and improvements in productivity.
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Strengthening Growth Businesses | Electronics Materials : Launching New Business 10©️ DOWA HOLDINGS CO., LTD. As an unplanned project, we are responding to a sharp increase in demand for complex oxide powder and the emergence of new applications for nano-silver powder. Complex Oxide Powder (Fuel Cell Electrode Material) - As the use of AI expands, the construction of data centers is accelerating and demand for electricity is rapidly increasing. In some regions, electricity supply capacity is insufficient. Nano Silver Powder (nano-sized silver powder) ・Under consideration as a material for next-generation secondary batteries, such as those used in xEVs, and sample deliveries are increasing. Although the timing is undecided, stable revenues can be expected once mass production is achieved. Data center operators are introducing fuel cells which can be installed in a short period of time as their primary power source to secure electricity through on-site generation. With demand from new installations, complex oxide powder is expected to become profitable in FY2026. Since electrodes are also required as replacement parts, stable demand is anticipated even after installation. Data Centers Power Plant Insufficient power generation and supply capacity Secure a continuous power supply through on-site power generation using fuel cells Fuel cell
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Metal Processing | Business Overview for Fiscal Year 2025 11©️ DOWA HOLDINGS CO., LTD. Trends in Major Products and Services （FY2023 H1=100） Volume of sales of copper rolled products from the Subsidiaries in Asia Volume of sales of copper rolled products (Automotive Applications) Volume of sales of copper rolled products (Information and Communication Equipment) Business Strategy （From the Second Half of FY2025 Onward） Net Sales and Ordinary Profit - Steady demand is expected for both automotive applications and information and communication equipment. - We will promote the expansion of sales of high value-added products, including those for AI servers. - To meet increasing demand in Asia, including from non-Japanese manufacturers, we will proceed with capacity expansion investments at our facilities in China and Thailand. - We will implement price revisions in response to rising and persistently high costs for raw materials, labor, and other expenses. 3.4 2.1 3.8 2.4 2.1 2.0 3.0 2.1 3.4 2.9 5.5 5.1 5.9 5.9 5.0 116.1 116.4 128.7 143.0 136.7 0 2 4 6 8 10 0 30 60 90 120 150 FY2022 FY2023 FY2024 FY2025 Forecasts Initial Forecasts Ordinary Profit in H2 Ordinary Profit in H1 Net sales 100 109 95 98 100 109 113 80 100 120 140 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 100 129 146 151 153 154 170 80 120 160 200 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 100 127 125 142 149 142 171 80 120 160 200 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 （billion yen)
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Heat Treatment | Business Overview for Fiscal Year 2025 12©️ DOWA HOLDINGS CO., LTD. Trends in Major Products and Services （FY2023 First Half=100） Industrial Furnaces Sales AmountCarburization Treatment Volume in Japan Carburization Treatment Volume in Overseas Business Strategy (From the Second Half of FY2025 Onward) Net Sales and Ordinary Profit - Automotive related demand remains firm, and year-on-year profit growth is expected. - In Japan, we will promote strategic products such as Z-TKM and capture the growing outsourced heat treatment demand and capital investment demand associated with decarbonization efforts. - Overseas, led by India, we will respond to increasing demand for heat treatment and industrial furnaces for automotive parts by leveraging our global network of facilities. - We will promote the development and sales expansion of products for new fields, including electronic devices and aircrafts. 0.7 1.3 0.6 1.0 0.7 1.1 1.8 1.5 1.1 1.7 1.8 3.2 2.1 2.2 2.4 30.1 32.2 33.7 34.0 35.3 0 1 2 3 4 5 0 10 20 30 40 FY2022 FY2023 FY2024 FY2025 Forecasts Initial Forecasts Ordinary Profit in H2 Ordinary Profit in H1 Net sales 100 99 92 92 96 105 112 80 100 120 140 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 100 113 104 109 110 117 128 80 100 120 140 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 100 147 105 185 121 159 175 60 100 140 180 220 H1 H2 H1 H2 H1 H2 FY2023 FY2024 FY2025 Medium- term Plan 2027 （billion yen)
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Strengthening Growth Businesses | Heat Treatment : Growth Potential in India 13©️ DOWA HOLDINGS CO., LTD. - India’s GDP growth rate is expected to exceed 6% annually, and its working-age population will continue to increase until 2050. A large labor force is also one of India’s key attractions. - Under the “Make in India” slogan, the Indian government is promoting policies to strengthen the manufacturing sector, and the share of manufacturing in GDP is expected to grow going forward. - Automobile sales volume are increasing due to rising incomes and government subsidies. - As part of air pollution countermeasures, demand for environmentally friendly vehicles is expanding, and EV development is accelerating. - In addition to automobiles, the markets for motorcycles and industrial machinery are also on a growth trend. Heat Treatment Business: Meeting the needs of our domestic customers through our network of operating sites. Industrial Furnace Business: Capturing customers’ capital investment demand by leveraging high quality and low cost. Option: Utilize the bases to explore the possibilities of new business development in India. Many capacity expansion and production increase projects are planned for customers in India We will capture this demand by leveraging our position as India’s largest heat treatment company Heat Treatment Business Industrial Furnace Business Gurgaon Plant Pune Plant Chennai Plant Bangalore Plant (Head Office, with industrial furnace development capabilities) Nelamangala Plant Ahmedabad Plant Bidadi Plant Trends in the Indian Market Business Strategy
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Development of New Businesses and Products | Efforts Towards Achieving Truly Circulation ©️ DOWA HOLDINGS CO., LTD. 14 Among major B-to-C companies in Japan and overseas, targets for the use of recycled materials are being set, and demand for our recycled products is on an upward trend. Pursuing quality in circularity to achieve true circularity and provide new value to customers. In addition, we plan to develop branding for products and services that contribute to the achievement of true circularity. Certification of Recycled Products Establishing New Solutions to meet Resource Circulation Needs Ensuring the reliability of a wide range of recycled products Establishing a resource circulation scheme that involves our customers UL-Certified Products 1 Potassium Gold Cyanide 2 Electrolytic Zinc 3 Zinc Powder 4 Atomized Copper Powder 5 Atomized Silver Powder 6 Silver Coated Powders 7 Atomized Alloy Powder 8 YCuT-FX(Titanium-Copper Alloy) 9 Zinc Cathode 10 Corson-Copper Alloy FY2027 KPI： Obtain Certification for 15 or more Product Categories An Example of a Resource Circulation scheme - We are promoting the acquisition of UL certification as a third-party certification that verifies recycled products. As of November 2025, UL certification has been obtained for ten products. - As a framework to complement UL certification, we have established an internal certification system and begun its operation. - We have built a closed loop that reconverts customers' process waste into metal materials, and delivers them back to customers as products for electronic components, thereby improving recycling efficiency In addition to quality and cost, we will pursue differentiation of products and services through a new evaluation criteria.
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Progress of Medium-Term Plan 2027 ©️ DOWA HOLDINGS CO., LTD. 15 Controlling Variability, Cultivating Expectations Mitigating Risks
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Mitigating Risks | Sustainability Indicators and Goals (KPIs) *Materials and KPIs are excerpted 16 Materiality Medium-Term Plan 2024 Indicators (KPI) and Targets Results We aim to realize the vision (our goal in 2030) by achieving the targets for each KPI set under the materiality themes Blue: Achieved Red: Not Achieved Enhancing human capital - Introduction of an option to postpone retirement Introduce at all subsidiaries → 100% - Average retention rate three years after joining the Company (for new graduates at DOWA HOLDINGS) Maintain 100% rate → 89% - Increase in the ratio of new hires who are women (HD employees) 30% → 27% - Increase in the ratio of annual paid leave days taken 80% or higher → 82.9% Responding to climate change - Publication of TCFD Report - Create a roadmap for climate change response → Publication of the TCFD report, public disclosure of the climate change action roadmap, and preparation of a medium- term scenario based on these. → Formulation of contribution targets for our products and services that contribute to reducing GHG emissions in society. Creating a resource-recycling society / Enhancing products and services that reduce social and environmental risks - Volume of recycled raw materials collected by Kosaka Smelting & Refining (FY2021=100) 110 → 116 - Volume of spent lithium-ion batteries recycled and processed (FY2021 = 100) 400 → 210 - Ratio of metals derived from recycling that are used in production (based on sales in the Nonferrous Metals Business) 70% → 69% System development is complete; specific goals have been set - GHG emissions (Scope 1 and 2) Reduction by 22% compared to FY2013 (FY2027) → Plan to set new goal since we have already achieved the above one in FY2024 - Number of items of DOWA Green Action 50 items or higher (FY2027) Setting goals that express the role of circularity - Number of themes for creating arteriovenous collaborative businesses 3 new themes or higher （FY2027） - Number of recycled metal certified items 15 items or higher (FY2027) Continue to set ambitious goals - Retention rate of new hires three years after employment (HD employees) 100% - Ratio of male employees taking childcare leave (HD employees) 30% - Ratio of employees taking paid leave 80% ©️ DOWA HOLDINGS CO., LTD. Medium-Term Plan 2027 Indicators (KPI) and Targets Pursue quality in circularity Fostering a Culture Where Employees Work with Pride Moving into the Implementation Phase
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Mitigating Risks | Enhancement of Human Capital ©️ DOWA HOLDINGS CO., LTD. 17 - Strengthening recruitment capabilities across the entire group - Developing core human resources - Establishing a basic educational platform - A comfortable working environment - work-style reform - Promoting diversity - Improving employee engagement - Information sharing and promotion of interpersonal communication - Enhancement of information disclosure both internally and externally We will promote various measures to realize our vision for 2030 in enhancing of human capital "Creating an organization that continues to grow as it strives to create economic and social value." - Utilizing social media services, referral hiring, and alumni recruitment - Promoting coordinated recruitment activities across group companies - Strengthening management development and advancing hierarchical education programs - Organizing learning opportunities combining hierarchical education programs with elective education - Developing and implementing HR systems that are adaptable to changes in the stages of life - Enhancing support systems for balancing childcare and nursing care - Promoting health and productivity management and reducing annual total working hours - Creating a more female-friendly work environment and increasing the ratio of female managers - Utilizing employee engagement surveys and stress checks - Promoting initiatives to foster individual job satisfaction - Appropriate sharing of human resource information and promotion of talent utilization through the use of DX utilization - Enhancing disclosure of human capital information both internally and externally Launch of the “Alumni Community” A platform for interaction between retirees and current employees ・Business co-creation ・Gaining external insights ・Expanding the talent pool Toward the realization of “Employee and organizations that continue to grow” 18 group companies have obtained the Health and Productivity Management Organization Certification (as of November 2025)
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(Supplement) Assumptions and Sensitivity ©️ DOWA HOLDINGS CO., LTD. 18 Sensitivity (Operating Profit / year) Million yen Assumptions Fluctuation Sensitivity Exchange rate 148.0 ¥／＄ ±1¥／＄ 240 Copper 10,000 ＄／ｔ ±100＄／ｔ 10 Zinc 3,000 ＄／ｔ ±100＄／ｔ 250 Indium 350 ＄／kg ±10＄／kg 30 Exchange Rate and Metal Prices FY2024 FY2025 Ref. H1 averages H2 averages Full year averages H1 assumptions H1 averages H2 assumptions Full year averages Oct. 2025 averages Exchange rate: (¥/$) 152.6 152.5 152.6 142.0 146.0 148.0 147.0 151.3 Copper: ($/t) 9,477 9,262 9,370 9,000 9,655 10,000 9,828 10,696 Zinc: ($/t) 2,806 2,943 2,874 2,600 2,733 3,000 2,866 3,149 Indium: ($/kg) 347 347 347 350 366 350 358 356 Sensitivity is based on assumptions that the Company assumes to be reasonable at the time of publication. Actual effects may differ materially due to a variety of factors. * Exchange rate sensitivity; Nonferrous Metals 220 million yen and Electronic Materials 20 million yen.
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Forward-looking statements made in this document, such as business forecast, are based on the information available at this time and on certain premises that the Company assumes to be reasonable. Actual performance may differ materially from such forecasts due to a variety of factors. ©️ DOWA HOLDINGS CO., LTD. 19