Shinagawa Refra Co., Ltd · TSE:5351
Shinagawa Refra — FY2025 Earnings Presentation
38 slides from Shinagawa Refra's earnings presentation, May 28, 2026
Slide 1: Financial Results Presentation for the Fiscal Year Ended March 31, 2026
Financial Results Presentation for the Fiscal Year Ended March 31, 2026 May 28, 2026 TSE Ticker Symbol 5351
Slide 2: Table of Contents
Table of Contents I. Summary of FY2025 1. Consolidated Financial Highlights 2. Factors Affecting EBITDA and Operating Income Financial Results 3. Details of Extraordinary Gain and Losses (1) Gain on Sale of Fixed Assets (2) Impairment Losses 4. Net Sales and EBITDA by Business Segment 5. Business Se
Slide 3: I. Summary of FY2025 Financial Results
I. Summary of FY2025 Financial Results
Slide 4: 1. Consolidated Financial Highlights
1. Consolidated Financial Highlights (Unit : Billion JPY) FY2024 [Results] FY2025 [Results] YoY Net Sales 144.0 177.7 +23.4% EBITDA 17.9 22.1 +23.3% (EBITDA Margin) (12.5%) (12.5%) (±0.0pt) Operating Income 13.2 13.6 +2.5% (Operating Income Margin) (9.2%) (7.7%) (−1.6pt) Ordinary Income 13.6 15.9 +1
Slide 5: 2. Factors Affecting EBITDA and Operating Income
2. Factors Affecting EBITDA and Operating Income (Unit: Billion JPY) [Operating Income] Increase +0.3 (13.2 ⇒ 13.6) [EBITDA] Increase +4.1* (17.9 ⇒ 22.1) * Increase Factors +7.2 Decrease Factors −3.1 Refractory +0.3 Engineering +2.4 22.1 Overseas Foreign Group Exchange Others +0.2 Real Estate Compan
Slide 6: 3. Details of Extraordinary Gain and Losses (1) Gain on Sale of Fixed Assets
3. Details of Extraordinary Gain and Losses (1) Gain on Sale of Fixed Assets Maintaining Financial Soundness Through Asset Sales While Advancing the Growth Strategy [Purpose of the Asset Transfer] (1) Strengthen the financial base through the repayment of interest-bearing debt (2) Secure funds for i
Slide 7: 3. Details of Extraordinary Gain and Losses (2) Impairment Losses
3. Details of Extraordinary Gain and Losses (2) Impairment Losses While reviewing asset valuations in response to changes in the business environment, we will continue to enhance profitability by strengthening the production and sales capabilities of each business. [Summary of Impairment Loss] 1 2 3
Slide 8: 4. Net Sales and EBITDA by Business Segment
4. Net Sales and EBITDA by Business Segment ◆Net Sales (Unit: Billion JPY) FY2024 [Results] FY2025 [Results] YoY Refractory Sector 95.8 65.8 110.9 61.8 +15.7% Insulation Sector 18.7 12.9 17.7 9.9 −5.7% Advanced Device & Material Sector 4.3 3.0 4.1 2.3 −5.5% Engineering Sector 25.7 17.7 45.8 25.6 +78
Slide 9: 5. Business Segment Overview 1/2
5. Business Segment Overview 1/2 (Unit: Billion JPY) (Unit: Billion JPY) Refractory Sector Insulation Sector [Net Sales] [EBITDA, Operating Income] [Net Sales] [EBITDA, Operating Income] 150.0 18.0 24.0 6.0 is Operating Income is Operating Income 14.4 18.7 110.9 17.7 4.0 95.8 100.0 12.0 11.0 16.0 4.
Slide 10: 5. Business Segment Overview 2/2
5. Business Segment Overview 2/2 (Unit: Billion JPY) (Unit: Billion JPY) Advanced Device & Material Sector Engineering Sector [Net Sales] [EBITDA, Operating Income] [Net Sales] [EBITDA, Operating Income] 6.0 0.6 60.0 6.0 is Operating Income is Operating Income 45.8 4.3 0.4 4.1 4.1 4.0 0.3 40.0 4.0 −
Slide 11: 6. Net Sales by Region
6. Net Sales by Region (Unit: Billion JPY) FY2024 FY2025 YoY Japan 100.9 70.0 101.4 57.0 +0.5% Asia/Oceania 18.3 12.7 19.8 11.2 +8.5% Overseas Overseas North America total 7.7 5.4 total 9.6 5.5 +24.9% South America JPY 43.1 10.6 7.4 JPY 76.3 28.6 16.1 +169.0% Europe billion 5.0 3.5 billion 13.2 7.4
Slide 12: 7. Key Initiatives for FY2025 1/2
7. Key Initiatives for FY2025 1/2 Advanced Device & Material Refractory Sector Insulation Sector Engineering Sector Sector Strengthening global expansion capabilities through three new M&A and JV Reframax SDAN Dynamix (Acquired in May 2025) (Established in September 2025) (Acquired in March 2026) Co
Slide 13: 7. Key Initiatives for FY2025 2/2
7. Key Initiatives for FY2025 2/2 Advanced Device & Material Refractory Sector Insulation Sector Engineering Sector Sector To expand the production base for the Advanced Device & Material Sector business, through a two-plant system with the existing plant in Bizen City, Okayama Prefecture, a new pla
Slide 14: II. Performance Outlook for FY2026
II. Performance Outlook for FY2026
Slide 15: 1. Outlook for FY2026 (Compared to the Previous Year)
1. Outlook for FY2026 (Compared to the Previous Year) (Unit: Billion JPY) FY2025 [Results] FY2026 [Outlook] YoY Net sales 177.7 189.0 +6.3% EBITDA 22.1 22.0 −0.6% (EBITDA Margin) (12.5%) (11.6%) (−0.9pt) Operating Income 13.6 13.0 −4.5% (Operating Income Margin) (7.7%) (6.9%) (−0.8pt) Ordinary Incom
Slide 16: 2. Outlook for Factors Affecting EBITDA and Operating Income in FY2026
2. Outlook for Factors Affecting EBITDA and Operating Income in FY2026 (Unit: Billion JPY) [Operating Income] Decrease −0.6 (13.6 ⇒ 13.0) Increase Factors +1.7 [EBITDA] Decrease −0.1* (22.1 ⇒ 22.0) * Decrease Factors −1.8 22.1 Refractory −0.5 Advanced Device Others & Material +0.3 Engineering +0.0 2
Slide 17: 3. Outlook for FY2026 by Sector
3. Outlook for FY2026 by Sector Performance Trends during the 6th Mid-Term Management Plan period (Unit: Billion JPY) FY2026 FY2024 FY2025 FY2026 Mid-term Plan Results Results Outlook Targets Net Sales by Sector Refractory Sector 95.8 110.9 117.1 103.4 For FY2026, although we anticipate a decrease i
Slide 18: 4. Outlook for FY2026 (Comparison with the Mid-Term Management Plan Targets)
4. Outlook for FY2026 (Comparison with the Mid-Term Management Plan Targets) Performance Trends during the 6th Mid-Term Management Plan Period (Unit: Billion JPY) FY2026 Percentage Change FY2024 FY2025 FY2026 [Mid-Term Plan Compared to Mid- [Results] [Results] [Outlook] Targets] Term Plan Targets Ne
Slide 19: 5. Factors Behind Changes in EBITDA and Operating Income in FY2026
5. Factors Behind Changes in EBITDA and Operating Income in FY 2026 [FY2026 Mid-Term Management Plan Targets vs. Outlook] (Unit: Billion JPY) [Operating Income] Decrease from Mid-Term Plan Targets: −6.8 (19.8 ⇒ 13.0) [EBITDA] Decrease from Mid-Term Plan Targets: −3.2* (25.2 ⇒ 22.0) * Increase Factor
Slide 20: III. Management Strategy for FY2026
III. Management Strategy for FY 2026
Slide 21: 1. Basic Policy and Priority Measures for FY2026
1. Basic Policy and Priority Measures for FY 2026 [Basic Policy for FY 2026] Building on the robust global network established through proactive M&A activities to date, FY2026 will focus on "Strengthening Organic Growth Capabilities" [Priority Measures for FY 2026] 1 2 3 Strengthening Accelerating G
Slide 22: 2. Sector Policies
2. Sector Policies Refractory Sector Insulation Sector (1) Development of new growth areas (1) Expansion of sales to customers other than blast furnace ・Fireproofing and joint materials for construction applications operators ・Expanding into growth areas, including stationary energy storage systems
Slide 23: Expanding Global Group Collaboration 1/4
Priority Measure 1 Expanding Global Group Collaboration 1/4 Strengthened the global network supporting global Group collaboration through strategic M&A activities since 2022 China Netherlands Italy United States United States Gouda SDAN Shinagawa Hefeng Dynamix SSCA (Acquired in October 2024) (Estab
Slide 24: Expanding Global Group Collaboration 2/4
Priority Measure 1 Expanding Global Group Collaboration 2/4 Expanding cross-sector Group collaboration by utilizing the robust global network GOUDA × ISOLITE Sales of ISOLITE products in Europe SSCA × Group *Global sales of high ceramics Collaboration in North America SAM × REFRAMAX *Proposing const
Slide 25: Expanding Global Group Collaboration 3/4
Priority Measure 1 Expanding Global Group Collaboration 3/4 Various Group collaboration measures are steadily progressing on a global scale Current Current Estimated Final Overview of Implementation Measures Number of Effect (Sales/Profit) Measures Measures Status (Progress) * Through 2035 Creation
Slide 26: Expanding Global Group Collaboration 4/4
Priority Measure 1 Expanding Global Group Collaboration 4/4 [The 6th Medium-Term Acquisition of Reframax in Brazil Management Plan Starting from the 5th Medium-Term Establishment of SHINDAN in Italy as a joint venture Targets] Acquisition of SRB in Brazil and Overseas Sales and Management Plan, we a
Slide 27: Accelerating Global Expansion of Functional Materials for Continuous Casting 1/3
Priority Accelerating Global Expansion of Functional Materials for Continuous Casting Business in the Measure 2 Refractory Sector 1/3 Accelerating global expansion in the high-value-added functional materials for continuous casting field by leveraging technologies cultivated in Japan [Functional Mat
Slide 28: Accelerating Global Expansion of Functional Materials for Continuous Casting 2/3
Priority Accelerating Global Expansion of Functional Materials for Continuous Casting Business in the Measure 2 Refractory Sector 2/3 Looking ahead to medium- to long-term expansion of the functional materials for continuous casting business, we will expand manufacturing and sales structures at over
Slide 29: Accelerating Global Expansion of Functional Materials for Continuous Casting 3/3
Priority Accelerating Global Expansion of Functional Materials for Continuous Casting Business in the Measure 2 Refractory Sector 3/3 ●Technical synergies between mold flux and functional Expanding sales in global refractories for continuous casting ●Collaboration among global bases markets ■Net Sal
Slide 30: Accelerating Business Expansion into New Fields in the Advanced Device & Material Sector
Priority Measure Accelerating Business Expansion into New Fields in the Advanced Device & Material 3 Sector Strengthen responsiveness to customer needs and expand market presence in new growth fields and semiconductor manufacturing equipment field. Main Targets for the 7th [Issues for Capturing This
Slide 31: 3. Financial and Capital Strategy (1) Capital Allocation
3. Financial and Capital Strategy (1) Capital Allocation ■FY2026 Cash Inflows and Outflows (Forecast) [Main Points of FY2026 Cash Inflows and Outflows] ●Operating cash flow decreased from JPY 13.8 billion in the [Cash Inflows] [Cash Outflows] previous year to JPY 8.4 billion, due to increased tax pa
Slide 32: 4. Financial and Capital Strategy (2) Shareholder Returns
4. Financial and Capital Strategy (2) Shareholder Returns Changed to a policy of implementing progressive dividends based on DOE of 4% or more ■Trends in Dividends per Share and Total Dividend Amounts [Change in Dividend Policy] (JPY) (Billion JPY) Until FY2023 Based on dividend payout ratio of 30%
Slide 33: [For Reference] Trends in Stock Price and Market Capitalization
[For Reference] Trends in Stock Price and Market Capitalization (Stock Price/TOPIX: Index) Market Capitalization Stock Price TOPIX (Market Capitalization: Billion JPY) 22 Mar 2026 350 PER PBR Dividend yield 230 2,300 JPY 1,913 = Index 266 (Times) (Times) (%) 13 Feb 2024 2026 Latest 3.32 0.81 5.01 JP
Slide 34: IV. Onward to the Next Mid-Term Management Plan
IV. Onward to the Next Mid-Term Management Plan
Slide 35: 1. Key Management Issues for the Group
1. Key Management Issues for the Group issue 1 Management 2 Management issue Organic Growth through Enhanced Continuous Growth-Strategy through Global Collaboration M&A and JVs ●Leveraging the Group's global network to drive ●Actively pursuing M&A and JVs to accelerate growth in existing businesses
Slide 36: 2. Toward the Realization of "VISION 2030"
2. Toward the Realization of "VISION 2030" VISION 2030 Qualitative Targets (Vision) The 7th Mid-Term Toward Shinagawa Refra Group that is not limited to Japan, refractories, or iron & steel Management Plan ●The current business environment has become Global even more challenging compared to initial
Slide 37: 3. Direction for Formulating the 7th Mid-Term Management Plan
3. Direction for Formulating the 7th Mid-Term Management Plan (1) Business growth through enhancement of competitiveness ● Expansion of sales domestically and internationally ● Strengthening product development that captures market needs ● Optimization of global production system based on changes in
Slide 38: Disclaimer
Disclaimer This material is intended to provide information regarding the financial results for the fiscal year ended March 31, 2026, and is not intended to solicit investment in securities issued by our company. This material has been prepared based on data as of May 28, 2026. The opinions and fore