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A Recycling - Oriented World DOWA Fiscal 2026 First Quarter Supplementary Information August 7 , 2026 DOWA HOLDINGS CO . , LTD . © DOWA HOLDINGS CO . , LTD . 1
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Executive Summary FY2026 1Q Results • Net sales increased 58% year on year, operating profit rose 281%, and ordinary profit increased 278%, driven by favorable metal prices and foreign exchange rates. • Demand trends were generally in line with initial assumptions, although new energy-related businesses progressed above expectations. • The Nonferrous Metals segment benefited from inventory valuation gains at the end of the quarter, mainly due to a decline in silver prices, resulting in gains on hedging transactions (see Page 9). Highlights • Environmental Management & Recycling: The decline in low-contaminated PCB waste was offset by increased treatment volumes of hazardous waste. Demand for melting and recycling business remained strong. • Nonferrous Metals: The Tizapa Mine continued stable operations. The segment steadily captured the benefits of higher zinc and silver prices. • Electronic Materials: Sales volume of silver powder recovered. Sales of composite oxide powders for fuel cell applications, driven by demand from AI data centers, increased. • From the second quarter onward, the business outlook has become increasingly uncertain, as prices of precious metals such as gold, silver, and platinum have been trending downward, while weaker automotive-related demand and rising material costs have continued. • Based on these factors, the full-year forecast for FY2026 remains unchanged from the initial forecast. Full-Year Forecast 2©️ DOWA HOLDINGS CO., LTD. FY2026 1Q results showed a significant increase in earnings, driven mainly by the Nonferrous Metals segment against a backdrop of favorable metal prices and foreign exchange rates. However, as demand trends generally progressed in line with initial assumptions, the full-year forecast was left unchanged.
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Operating Results 3©️ DOWA HOLDINGS CO., LTD. Consolidated Profit Statements Exchange Rate and Metal Prices Billion yen (Amounts less than 100 million yen are omitted.) FY2025 FY2026 Changes 1Q Results Full-year Results 1Q Results Full-year Forecasts 1Q Full Year Net Sales 160.1 745.4 253.3 941.0 93.2 58％ 195.5 26％ Operating Profit 6.4 34.1 24.7 53.0 18.2 281％ 18.8 55％ Ordinary Profit 8.6 54.3 32.5 80.0 23.9 278％ 25.6 47％ Profit attributable to owners of parent 6.4 62.4 23.4 57.0 17.0 266％ (5.4) (9％) FY2025 FY2026 1Q averages Full-year averages 1Q assumptions 1Q averages 2Q–4Q assumptions Full-year averages Exchange Rate : (¥/$) 144.6 150.8 155.0 159.5 155.0 156.1 Copper : ($/t) 9,519 10,816 12,000 13,324 12,000 12,331 Zinc : ($/t) 2,641 2,968 3,100 3,463 3,100 3,191 Indium : ($/kg) 376 423 600 698 600 625 * Full-year forecasts for FY2026 remain unchanged from those announced on May 14, 2026.
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Business Environment (FY2026 1Q) 4©️ DOWA HOLDINGS CO., LTD. Demand Trends Environmental management and recycling-related business • Orders for waste treatment and recycling services in Japan remained firm. • In Southeast Asia, orders for waste treatment services in Indonesia were increased. Automobile-related business • Overall automobile production remained firm, resulting in increased orders and sales of related products and services. New forms of energy- related business • Sales of silver powder for solar panels and composite oxide powders for fuel cell applications increased. Information/communication- related business • Demand for AI servers remained firm; however, sales volume was unchanged from the previous year due to further thinning of products. Market Environment • The average exchange rate was weaker yen/stronger U.S. dollar compared with the same period of the previous year. • Average prices of base metals, as well as precious metals such as gold, silver, and PGMs (platinum group metals), increased year on year. Costs • Energy costs, including electricity charges, declined year on year, while purchasing conditions for smelting raw materials deteriorated. • Labor costs increased due to higher bonus payments and other factors, while material prices rose amid ongoing developments in the Middle East.
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Trends in Major Products 5©️ DOWA HOLDINGS CO., LTD. Indexes (100 for FY2025 1Q) FY2025 FY2026 1Q 2Q 3Q 4Q 1Q Environmental Management & Recycling Waste treatment volume in Japan 100 93 99 91 104 Recycled used home electronics appliances volume 100 100 101 92 100 Net sales of waste treatment in the Southeast Asia Business 100 107 125 118 105 Nonferrous Metals Collected recycling materials volume ( KOSAKA SMELTING & REFINING) 100 87 97 92 104 Zinc production volume 100 88 95 112 95 Electronic Materials LEDs sales volume 100 122 95 85 94 Silver powder sales volume 100 64 60 79 127 Metal Processing Copper alloy strips sales volume 100 104 108 105 105 Heat Treatment Net sales in the Heat Treatment Processing Business 100 107 108 110 106 Net sales in the Industrial Furnaces Business 100 145 108 202 136
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Year-on-Year Comparison by Segment 6©️ DOWA HOLDINGS CO., LTD. Billion yen (Amounts less than 100 million yen are omitted.) FY2025 1Q Results FY2026 1Q Results Changes Details of Changes to Ordinary Income [+] Factors contributing to profit increase [−] Factors contributing to profit decreaseNet Sales Operating Profit Ordinary Profit Net Sales Operating Profit Ordinary Profit Net Sales Operating Profit Ordinary Profit Environmental Management & Recycling 48.9 3.9 3.6 65.2 4.3 4.0 16.2 0.3 0.4 [+] Higher treatment volume in the melting and recycling business [+] Higher metal prices [−] Increase in labor costs Nonferrous Metals 74.2 1.9 3.6 125.7 15.6 22.8 51.5 13.6 19.2 [+] Higher metal prices and weaker yen [−] Deterioration in purchasing conditions for smelting raw materials [+] Improvement in inventory valuation gains/losses (lower of cost or market method and hedging transactions) [+] Increase in mine-related earnings Electronic Materials 22.6 (0.9) (0.5) 52.0 1.5 2.0 29.4 2.5 2.6 [+] Higher sales of short-wavelength infrared LEDs and photodiodes (PDs) for new applications [+] Higher sales of silver powder for solar panels [+] Improvement in inventory valuation gains/losses (lower of cost or market method) [+] Higher sales of magnetic powders and composite oxide powders Metal Processing 33.0 0.9 0.7 46.5 2.6 2.7 13.4 1.7 1.9 [+] Increased sales of automobile-related products and services [+] Improvement in profitability due to higher copper prices (a temporary factor) [−] Increase in labor costs, rise in material unit prices Heat Treatment 7.3 0.1 0.2 8.4 0.1 0.2 1.0 (0.0) (0.0) [+] Increased demand for domestic automobile-related products and services [+] Growth in orders for new furnaces [−] Increase in labor costs, rise in material unit prices Other/ Eliminations (26.1) 0.4 0.8 (44.6) 0.4 0.5 (18.4) 0.0 (0.3) － Total 160.1 6.4 8.6 253.3 24.7 32.5 93.2 18.2 23.9
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Factor Analysis of Ordinary Profit 7©️ DOWA HOLDINGS CO., LTD. FY2026 1Q – FY2025 1Q Environmental Management & Recycling Nonferrous Metals Electronic Materials Metal Processing Heat Treatment Others Total Initiative effects / changes in sales volume, etc. 1.0 (0.1) 1.7 0.9 0.3 0.0 4.0 Free metal income (volume effect) － (0.3) － － － － (0.3) Free metal income (metal price effect) － 7.8 － － － － 7.8 Free metal income (foreign exchange effect) － 2.0 － － － － 2.0 Metal prices and FX (excluding the Nonferrous Metals segment) 0.7 － 0.3 1.5 － － 2.7 Raw material costs (purchase terms effect) － (1.0) － － － － (1.0) Electricity costs － 0.3 － － － － 0.3 Inventory valuation gains/losses (0.2) 5.4 0.5 (0.0) － 0.1 5.7 Lower of cost or market method (0.5) 1.1 0.5 0.0 － 0.1 1.2 Hedging transaction valuation gains/losses 0.2 4.3 － (0.0) － － 4.5 Cost of sales (depreciation, etc.) / SG&A / R&D expenses (1.2) (0.8) (0.1) (0.7) (0.3) (0.1) (3.5) Change in operating profit 0.3 13.6 2.5 1.7 (0.0) 0.0 18.2 Non-operating income/expenses 0.0 5.5 0.1 0.2 0.0 (0.3) 5.6 Mine-related (equity-method investment gains/losses, royalties) － 6.1 － － － － 6.1 Income from the sale of samples － － (0.0) － － － (0.0) FX gains/losses, etc. 0.0 (0.6) 0.2 0.2 0.0 (0.3) (0.4) Change in ordinary profit 0.4 19.2 2.6 1.9 (0.0) (0.3) 23.9 Billion yen (Amounts less than 100 million yen are omitted.)
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Inventory Valuation Gains/Losses and Equity-Method Investment Gains/Losses 8©️ DOWA HOLDINGS CO., LTD. Segment Category Owner ship FY2025 FY2026 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Nonferrous Metals Tizapa Mine 39％ (0.1) (0.6) 0.1 3.3 2.6 3.5 － － － 3.5 Los Gatos Mine 30％ 1.4 1.6 3.1 3.8 10.1 3.4 － － － 3.4 Others - - 0.2 0.2 0.3 1.6 2.5 (0.6) － － － (0.6) Total 1.6 1.2 3.5 8.8 15.2 6.2 － － － 6.2 Segment Category FY2025 FY2026 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Nonferrous Metals Lower of cost or market method (0.8) (0.9) (1.7) (0.4) (4.0) 0.3 － － － 0.3 Hedging transaction valuation 0.0 (3.2) (4.2) 6.4 (0.9) 4.3 － － － 4.3 Total (0.7) (4.2) (5.9) 5.9 (4.9) 4.6 － － － 4.6 Metal Processing Lower of cost or market method 0.0 － － (0.0) (0.0) 0.0 － － － 0.0 Hedging transaction valuation (0.3) (0.0) (0.6) 1.3 0.2 (0.3) － － － (0.3) Total (0.2) (0.0) (0.6) 1.2 0.2 (0.2) － － － (0.2) Others Lower of cost or market method 0.0 0.0 0.0 (0.4) (0.2) 0.1 － － － 0.1 Hedging transaction valuation 0.1 (0.3) 0.0 0.6 0.4 0.4 － － － 0.4 Total 0.1 (0.3) 0.0 0.2 0.1 0.5 － － － 0.5 Equity-method investment gains/losses Inventory valuation gains/losses Billion yen (Amounts less than 100 million yen are omitted.) ・The Group’s consolidated fiscal year runs from April to March; however, because the fiscal years of the Tizapa Mine and the Los Gatos Mine run from January to December, their results are reflected in the Group’s consolidated financial statements with a one-quarter lag. Billion yen (Amounts less than 100 million yen are omitted.)
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(Ref.) Valuation Gains/Losses on Hedging Transactions in the Nonferrous Metals Segment 9©️ DOWA HOLDINGS CO., LTD. • As silver prices declined toward the end of the first quarter, the quarter-end valuation amount for FY2026 1Q was a gain of 2.6 billion yen. • Including the reversal of the previous quarter-end valuation amount, total valuation gains on hedging transactions during FY2026 1Q amounted to 4.35 billion yen, an improvement of 4.30 billion yen year on year. 0.84 (0.79) 0.79 (4.03) 4.03 (8.24) 8.24 (1.75) 1.75 2.60 Apr. 2025 Jun. 2025 Jul. 2025 Sep. 2025 Oct. 2025 Dec. 2025 Jan. 2026 Mar. 2026 Apr. 2026 Jun. 2026 Jul. 2026 Sep. 2026 Oct. 2026 Dec. 2026 Jan. 2027 Mar. 2027 1Q 0.05 2Q (3.24) 3Q (4.21) 4Q 6.47 1Q 4.35 2Q - 3Q - FY2025 Total Amount: (0.91) billion yen FY2026 Total Amount (through Q1)： 4.35 billion yen 4Q - Trend of Valuation Gains/Losses on Hedging Transactions Reversal of prior quarter valuation amount Valuation amount at the end of each quarter • The Group enters into hedging transactions for inventories to mitigate the risk of fluctuations in metal prices and foreign exchange rates. • As a rule, hedging transactions are marked to market at the end of each quarter, and the resulting valuation gains or losses are recognized in earnings. • For certain transactions that do not qualify for hedge accounting, valuation differences are recognized in profit or loss as valuation gains or losses on hedging transactions (quarter-end valuation amount).The quarter-end valuation amount is reversed at the beginning of the following quarter, after which the positions are again marked to market at the next quarter-end.
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FY2026 Full-year Forecasts: By Segment (Year-on-Year Comparison ) 10©️ DOWA HOLDINGS CO., LTD. Billion yen (Amounts less than 100 million yen are omitted.) FY2025 Results FY2026 Forecasts announced on May. 14 Changes Net Sales Operating Profit Ordinary Profit Net Sales Operating Profit Ordinary Profit Net Sales Operating Profit Ordinary Profit Environmental Management & Recycling 227.1 16.0 16.5 234.0 14.2 14.5 6.8 (1.8) (2.0) Nonferrous Metals 364.7 6.9 19.6 523.8 28.2 53.0 159.0 21.2 33.3 Electronic Materials 104.5 (2.6) 1.1 126.7 0.6 2.5 22.1 3.2 1.3 Metal Processing 147.3 9.3 9.7 169.0 7.2 7.1 21.6 (2.1) (2.6) Heat Treatment 33.9 1.9 2.7 35.8 2.1 2.3 1.8 0.1 (0.4) Other/ Eliminations (132.4) 2.5 4.4 (148.3) 0.7 0.6 (15.8) (1.8) (3.8) Total 745.4 34.1 54.3 941.0 53.0 80.0 195.5 18.8 25.6 * Full-year forecasts for FY2026 remain unchanged from those announced on May 14, 2026.
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FY2026 Full-year Forecasts: By Segment (H1,H2) 11©️ DOWA HOLDINGS CO., LTD. Billion yen (Amounts less than 100 million yen are omitted.) FY2026 H1 Forecasts FY2026 H2 Forecasts FY2026 Full-year Forecasts Net Sales Operating Profit Ordinary Profit Net Sales Operating Profit Ordinary Profit Net Sales Operating Profit Ordinary Profit Environmental Management & Recycling 113.2 6.7 6.6 120.8 7.5 7.8 234.0 14.2 14.5 Nonferrous Metals 247.5 12.9 25.1 276.3 15.3 27.9 523.8 28.2 53.0 Electronic Materials 62.2 0.2 1.4 64.5 0.4 1.1 126.7 0.6 2.5 Metal Processing 83.0 3.1 3.0 86.0 4.1 4.1 169.0 7.2 7.1 Heat Treatment 16.9 0.6 0.7 18.9 1.5 1.5 35.8 2.1 2.3 Other/ Eliminations (73.4) 0.2 0.2 (74.9) 0.5 0.4 (148.3) 0.7 0.6 Total 449.4 23.7 37.1 491.6 29.3 42.9 941.0 53.0 80.0 * Full-year forecasts for FY2026 remain unchanged from those announced on May 14, 2026.
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Assumptions and Sensitivities (FY2026) 12©️ DOWA HOLDINGS CO., LTD. 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. Sensitivity (Operating Profit / year) Billion yen Assumptions Fluctuation Sensitivity Exchange rate 155.0 ¥／$ ±1 ¥／$ 0.63 Copper 12,000 $／ｔ ±100 $／ｔ 0.03 Zinc 3,100 $／ｔ ±100 $／ｔ 0.46 Indium 600 $／kg ±10 $／kg 0.07 * Exchange rate sensitivity; Nonferrous Metals 0.55 billion yen and Electronic Materials 0.07 billion yen. Exchange Rate and Metal Prices FY2025 FY2026 Ref. Jul. 2026 averages 1Q averages Full year averages 1Q assumptions 1Q averages 2Q–4Q assumptions Full year averages Exchange rate : (¥/$) 144.6 150.8 155.0 159.5 155.0 156.1 162.6 Copper : ($/t) 9,519 10,816 12,000 13,324 12,000 12,331 13,525 Zinc : ($/t) 2,641 2,968 3,100 3,463 3,100 3,191 3,596 Indium : ($/kg) 376 423 600 698 600 625 774
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Appendix 13©️ DOWA HOLDINGS CO., LTD.
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Historical Data 14©️ DOWA HOLDINGS CO., LTD. Consolidated financial data Billion yen (Amounts less than 100 million yen are omitted.) FY2024 FY2025 FY2026 1Q 2Q 3Q 4Q Full-year 1Q 2Q 3Q 4Q Full-year 1Q 2Q 3Q 4Q Full-year Total Net Sales 188.9 163.5 164.6 161.4 678.6 160.1 157.0 181.5 246.6 745.4 253.3 - - - - Operating Profit 11.7 9.7 4.1 6.5 32.2 6.4 5.2 0.9 21.4 34.1 24.7 - - - - Ordinary Profit 14.2 12.7 7.5 9.0 43.5 8.6 6.9 6.3 32.3 54.3 32.5 - - - - Profit attributable to owners of parent 11.7 8.7 3.2 3.3 27.1 6.4 7.2 4.9 43.8 62.4 23.4 - - - - Environmental Management & Recycling Net Sales 44.2 41.8 46.6 47.4 180.1 48.9 50.4 61.1 66.5 227.1 65.2 - - - - Operating Profit 4.1 3.5 3.7 2.4 13.9 3.9 2.8 5.3 3.7 16.0 4.3 - - - - Ordinary Profit 4.5 3.2 4.4 2.7 14.9 3.6 2.5 5.9 4.3 16.5 4.0 - - - - Nonferrous Metals Net Sales 72.9 60.0 65.1 68.1 266.3 74.2 71.8 88.7 129.9 364.7 125.7 - - - - Operating Profit 4.3 4.0 (1.0) 3.1 10.5 1.9 0.3 (6.1) 10.8 6.9 15.6 - - - - Ordinary Profit 5.2 6.9 0.6 4.2 17.1 3.6 0.7 (2.8) 18.1 19.6 22.8 - - - - Electronic Materials Net Sales 60.0 42.3 35.9 26.4 164.8 22.6 18.6 22.8 40.3 104.5 52.0 - - - - Operating Profit 0.8 0.1 (0.2) (1.3) (0.5) (0.9) (0.6) (1.3) 0.2 (2.6) 1.5 - - - - Ordinary Profit 1.2 0.0 0.1 (1.1) 0.3 (0.5) 0.0 (0.3) 1.9 1.1 2.0 - - - - Metal Processing Net Sales 30.5 32.4 33.2 32.6 128.7 33.0 34.4 37.2 42.5 147.3 46.5 - - - - Operating Profit 2.1 1.3 0.9 0.7 5.2 0.9 1.5 2.0 4.8 9.3 2.6 - - - - Ordinary Profit 2.2 1.5 0.8 1.2 5.9 0.7 1.6 2.2 5.1 9.7 2.7 - - - - Heat Treatment Net Sales 7.0 8.0 7.8 10.8 33.7 7.3 8.6 7.9 9.9 33.9 8.4 - - - - Operating Profit 0.1 0.4 0.5 1.0 2.1 0.1 0.5 0.3 0.8 1.9 0.1 - - - - Ordinary Profit 0.3 0.3 0.6 0.8 2.1 0.2 0.8 0.5 1.0 2.7 0.2 - - - - Other/ Eliminations Net Sales (25.7) (21.0) (24.3) (24.0) (95.2) (26.1) (27.0) (36.5) (42.6) (132.4) (44.6) - - - - Operating Profit 0.1 0.1 0.1 0.4 0.9 0.4 0.5 0.7 0.8 2.5 0.4 - - - - Ordinary Profit 0.6 0.5 0.7 1.1 3.0 0.8 1.0 0.7 1.7 4.4 0.5 - - - - Exchange rate, Metal Prices FY2024 FY2025 FY2026 1Q Avg. 2Q Avg. 3Q Avg. 4Q Avg. FY Avg. 1Q Avg. 2Q Avg. 3Q Avg. 4Q Avg. FY Avg. 1Q Avg. 2Q Avg. 3Q Avg. 4Q Avg. FY Avg. Exchange rate (¥/$) 155.9 149.4 152.4 152.6 152.6 144.6 147.5 154.1 156.9 150.8 159.5 - - - - Copper ($/t) 9,751 9,204 9,178 9,346 9,370 9,519 9,792 11,100 12,852 10,816 13,324 - - - - Zinc ($/t) 2,833 2,779 3,048 2,838 2,874 2,641 2,824 3,165 3,243 2,968 3,463 - - - - Indium ($/kg) 324 370 341 353 347 376 355 367 593 423 698 - - - -
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Exchange Rate and Metal Prices 15©️ DOWA HOLDINGS CO., LTD. FY2025 FY2026 1Q Avg. 2Q Avg. 3Q Avg. 4Q Avg. FY Avg. 1Q Avg. 2Q Avg. 3Q Avg. 4Q Avg. FY Avg. Exchange rate ¥/$ 144.6 147.5 154.1 156.9 150.8 159.5 － － － 159.5 Copper $/t 9,519 9,792 11,100 12,852 10,816 13,324 － － － 13,324 Zinc $/ｔ 2,641 2,824 3,165 3,243 2,968 3,463 － － － 3,463 Indium $/kg 376 355 367 593 423 698 － － － 698 Gold $/oz 3,280 3,454 4,145 4,877 3,939 4,516 － － － 4,516 Silver $/oz 33.6 39.4 54.8 84.4 53.1 73.4 － － － 73.4 Platinum $/oz 1,073 1,384 1,675 2,207 1,585 1,922 － － － 1,922 Palladium $/oz 991 1,170 1,469 1,714 1,336 1,415 － － － 1,415 Rhodium $/oz 5,453 6,770 7,912 10,790 7,731 9,282 － － － 9,282 • The average exchange rate for FY2026 1Q was 159.5 yen per U.S. dollar, representing a weaker yen and stronger U.S. dollar compared with the same period of the previous year. • While copper and zinc prices continued their upward trend, precious metal prices, including gold, silver, and platinum, declined during the first quarter.
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16©️ DOWA HOLDINGS CO., LTD. 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.