Are Holdings, Inc. · TSE:5857
Are — FY2026 Earnings Presentation
48 slides from Are's earnings presentation, May 1, 2026
Slide 1: FY2026.3 Full-Year Financial Results
FY2026.3 Full-Year Financial Results ARE Holdings, Inc. May 1, 2026 Prime Market of Tokyo Stock Exchange (5857) These forecast performance figures are based on information currently available to the company’s management and certain assumptions judged rationally. Accordingly, there might be cases in
Slide 2: Financial Highlights
Financial Highlights Revenue Operating Profit Precious Metals North American Environmental and Recycling Business Refining Business Other Businesses ➢ Achieved a record-high operating profit. FY2026.3 Full-Year Results 570.0 bn yen 37.1 bn yen 19.9 bn yen 16.2 bn yen 1.7 bn yen vs FY2025.3 +63.8 bn
Slide 3: Agenda
1. FY2026.3 Full-Year Financial Results 2. FY2027.3 Full-Year Financial Plan 3. Update on Medium- to Long-Term Plan Agenda & Aspiration 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price 5. Appendix Copyright © ARE Holdings, Inc. All rights reserved. 3
Slide 4: Revenue Breakdown and Changes
Revenue Breakdown and Changes FY2025.3 FY2026.3 Results Results YoY Revenue 506.2 bn yen 570.0 bn yen +63.8 bn yen Precious Metals Recycling 481.9 bn yen 535.1 bn yen +53.3 bn yen North American Refining 24.2 bn yen 34.7 bn yen +10.5 bn yen Note: The figures do not add up to the total because data f
Slide 5: Profit Breakdown and Changes
Profit Breakdown and Changes FY2025.3 FY2026.3 Results Results YoY Operating Profit 20.0 bn yen 37.1 bn yen +17.1 bn yen Precious Metals Recycling 14.3 bn yen 19.9 bn yen +5.6 bn yen North American Refining 6.3 bn yen 16.2 bn yen +9.9 bn yen Environmental 1.7 bn yen 1.7 bn yen -0.0 bn yen Other Adju
Slide 6: Performance Against Primary KPI
Performance Against Primary KPI • Primary KPIs: collection volume, operating profit, and ROE • In FY2026.3, profitability steadily improved despite lower collection volume. 1 Precious Metals Recycling Profit and Gold Collection 2 Operating Profit and ROE Unit: billion yen, ton Unit: billion yen, % E
Slide 7: Approach to Equity Ratio
Approach to Equity Ratio • Our balance sheet is largely composed of highly liquid assets such as precious metal raw materials, along with corresponding short-term interest-bearing liabilities. (This includes assets and liabilities related to prepayment transactions in the North American Refining Bus
Slide 8: Precious Metals Recycling | Collection Volume by Metal
Precious Metals Recycling | Collection Volume by Metal Gold Palladium Unit: ton Unit: ton Platinum Rhodium Unit: ton Unit: kg Copyright © ARE Holdings, Inc. All rights reserved. 8
Slide 9: Precious Metals Recycling | Overview by Business Sector
Precious Metals Recycling | Overview by Business Sector Collection Profit Business Environment (YoY) Volume (FY26.3 / FY25.3) Gold ➢ Profit grew YoY, supported by an improved cost structure and rising gold and palladium prices. Dentistry Growth 95% ➢ Although material shifts continue to shrink the m
Slide 10: Precious Metals Recycling | Price Trends
Precious Metals Recycling | Price Trends Gold Palladium Unit: ¥/g Unit: ¥/g FY2025.3 FY2026.3 FY2025.3 FY2026.3 Avg. price for the period 19,238 Avg. price for the period 6,560 Avg. price for the period Avg. price for the period 4,888 12,677 Platinum Rhodium Unit: ¥/g Unit: $/toz FY2025.3 FY2026.3 F
Slide 11: North American Refining | Performance Trends
North American Refining | Performance Trends • Operating profit increased significantly YoY, partly due to contributions from the trading and product businesses, which benefited from profitable opportunities arising from U.S. tariff policy. • The core refining business expanded in scale, driven by i
Slide 12: North American Refining | Intake Volumes
North American Refining | Intake Volumes • We place emphasis on intake volumes as a preliminary KPI to assess performance trends in North America. • In the first half, we strategically increased the handling volume of jewelry scrap raw materials by capitalizing on market changes triggered by U.S. ta
Slide 13: North American Refining | Warehousing Business
North American Refining | Warehousing Business • The business model delivers self-sustaining growth through higher intake volumes, while storage volumes fluctuate with market conditions. • Storage volumes decreased after Q3 of FY2026.3 as we prioritized transportation and sales to London, where prof
Slide 14: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position Unit: billion yen Mar 31, Mar 31, Change Main Changes 2025 2026 Trade and other receivables +14.5 Current assets 419.6 537.0 +117.4 Inventories +71.2 Non-current assets 70.4 78.4 +8.0 Total assets 490.0 615.4 +125.4 Current liabilities 311.3 276.9 -34.4
Slide 15: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Unit: billion yen FY2026.3 Main Changes Cash flow from Profit before tax +34.7 -99.4 Changes in inventories -71.2 operating activities Other increases and decreases in receivables and payables -62.9 Cash flow from Purchase of property, plant and equipment (PP&E)
Slide 16: Diversifying Financing Options
Diversifying Financing Options • Financing demand, mainly for North American operations, increased due to a surge in precious metal prices and the expansion of prepayment transactions. • By diversifying our financing options, we secured the necessary funds in a stable and flexible manner, supporting
Slide 17: ESG Progress on Material Issues
ESG Progress on Material Issues Expand precious metals recycling Reduce CO2 emissions Total volume of recycled CO2 precious metals reduction effect CO2 emissions: Scope1 and 2* FY2025 FY2025 Q2 FY2025 FY2030 Target Total 573 tons 金 1,210 93 トン tons (CO2 emissions) (CO2 emissions) vs FY2024 +34% thou
Slide 18: ESG Progress on Material Issues
ESG Progress on Material Issues Supply precious metals in ways that are friendly to people, society, and the environment Evaluations by Third-Parties Our Initiatives for Responsible Management of Precious Metals Good Delivery Accreditations 1 Responsible Precious Metals Management Policy Objective ➢
Slide 19: External Evaluations and Ratings
External Evaluations and Ratings 1 Inclusion in Stock Indices 2 ESG-Related Evaluations Selected for FY2020 - 2025 A stock index composed of 400 companies considered highly attractive to investors, meeting key requirements of global investment standards such as efficient use of capital and managemen
Slide 20: Agenda
1. FY2026.3 Full-Year Financial Results 2. FY2027.3 Full-Year Financial Plan 3. Update on Medium- to Long-Term Plan Agenda & Aspiration 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price 5. Appendix Copyright © ARE Holdings, Inc. All rights reserved. 20
Slide 21: FY2027.3 Full-Year Financial Plan
FY2027.3 Full-Year Financial Plan Unit: billion yen FY2026.3 FY2027.3 Results Plan YoY Revenue 570.0 680.0 +110.0 Precious Metals Recycling 535.1 645.3 +110.2 North American Refining 34.7 34.5 -0.2 Operating Profit 37.1 41.0 +3.9 Precious Metals Recycling 19.9 27.4 +7.6 North American Refining 16.2
Slide 22: Drivers of Change in Operating Profit
Drivers of Change in Operating Profit • Domestic Precious Metals Recycling: Profit is expected to increase, mainly driven by growth in the electronics sector due to stronger demand from AI data centers, as well as growth in the catalyst sector following the successful launch of the Bando Plant, whic
Slide 23: Shareholder Return
Shareholder Return Shareholder Return Policy Dividend for FY2027.3 YoY Total Dividend +10 yen Targeting a 40% payout ratio Interim 65 yen 135 yen Dividend and stable returns Year-end Dividend 70 yen Dividends Per Share Copyright © ARE Holdings, Inc. All rights reserved. 23
Slide 24: Agenda
1. FY2026.3 Full-Year Financial Results 2. FY2027.3 Full-Year Financial Plan 3. Update on Medium- to Long-Term Plan Agenda & Aspiration 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price 5. Appendix Copyright © ARE Holdings, Inc. All rights reserved. 24
Slide 25: Medium- to Long-Term Plan & Aspiration | Basic Policy
Medium- to Long-Term Plan & Aspiration | Basic Policy Purpose Totally Committed to Protecting the Natural Environment and Preserving Resources 1 2 3 Growth Financial Human Capital • Acquisition of new markets • Growth investments • Enhancement of organizational • Geographic expansion • Shareholder r
Slide 26: Medium- to Long-Term Plan & Aspiration | Growth Strategy
Medium- to Long-Term Plan & Aspiration | Growth Strategy Strategies updated to reflect the current business environment Growth Strategy 1 Expand into new areas through technology development Synthetic Hydrogen & ammonia Aim for expansion of collections from new areas AI semiconductors pharmaceutical
Slide 27: Medium- to Long-Term Plan & Aspiration | Performance Targets
Medium- to Long-Term Plan & Aspiration | Performance Targets Operating Profit & ROE Main Growth Drivers for FY2030 (excludes M&A) 1 Electronics Sector Expansion ➢ Enhance collections in domestic and overseas AI-related areas ➢ Improve productivity through new and automated facilities 2 Catalyst Sect
Slide 28: Medium- to Long-Term Plan & Aspiration | Performance Targets
Medium- to Long-Term Plan & Aspiration | Performance Targets Unit: billion yen FY2025.3 FY2026.3 FY2027.3 FY2031.3 ・・・・・・・・・・ Unit: billion yen Results Results Plan Target Revenue 506.2 570.0 680.0 ・・・・・・・・・・ 750.0 Precious Metals Recycling 481.9 535.1 645.3 ・・・・・・・・・・ 719.0 North American Refining
Slide 29: Medium- to Long-Term Plan & Aspiration | Budget Price by Metal
Medium- to Long-Term Plan & Aspiration | Budget Price by Metal Budget Price Budget price for FY2027.3 through FY2031.3 Unit: ¥/g Average Price Budget Price for Change during FY2026.3 FY2027.3 – 2031.3 Gold 19,238 23,000 +3,762 Palladium 6,560 7,000 +440 Platinum 7,889 9,000 +1,111 Rhodium 35,955 48,
Slide 30: Medium- to Long-Term Plan & Aspiration | Financial Strategy
Medium- to Long-Term Plan & Aspiration | Financial Strategy Basic Financial Strategy Policy • Promote management mindful of both business growth and capital efficiency. • Balance growth investments and shareholder returns, underpinned by stable cash generation and financial soundness. Growth ➢ Margi
Slide 31: Medium- to Long-Term Plan & Aspiration | CAPEX Plan
Medium- to Long-Term Plan & Aspiration | CAPEX Plan Major CAPEX of FY2027.3 Unit: billion yen Precious Metals Recycling Improve electronics and catalyst margins 2.8 bn yen Depreciation Enhance production capacity at the Bando Plant 2.4 bn yen Granted the “Subsidy for Large-Scale Enhance production c
Slide 32: Medium- to Long-Term Plan & Aspiration | Revising HR System Concept
Medium- to Long-Term Plan & Aspiration | Revising HR System Concept Rationale for Revisions Align each employee’s actions with the ARE Group Way to ensure steady execution of medium- to long-term growth strategies and sustainable corporate value creation. Revisions to the Performance Evaluation Syst
Slide 33: Agenda
1. FY2026.3 Full-Year Financial Results 2. FY2027.3 Full-Year Financial Plan 3. Update on Medium- to Long-Term Plan Agenda & Aspiration 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price 5. Appendix Copyright © ARE Holdings, Inc. All rights reserved. 33
Slide 34: Situation Analysis and Issue Identification
Situation Analysis and Issue Identification Situation Analysis • ROE in FY2026.3 has improved at a faster pace than in the past three years. • Against this backdrop, the P/B ratio, which had been on a downward trend since FY2022.3, has recently turned upward. P/B Ratio ROE P/E Ratio * P/B ratio = 1.
Slide 35: Improving P/E Ratio | Investor Engagement
Improving P/E Ratio | Investor Engagement • Through proactive dialogue with shareholders and investors, we aim to enhance market understanding and valuation. • Feedback and insights from investors are regularly shared with management and leveraged for continuous improvement. Main Topics Discussed an
Slide 36: Improving P/E Ratio | ESG Management
Improving P/E Ratio | ESG Management Environment Social Governance ◼ Expand Precious Metals Recycling ◼ Enhance Work-Life Balance and ◼ Enhance Risk Management Key Targets and Benchmarks Employee Diversity ➢ Enhance risk management for overseas ➢ Total volume of recycled precious metals ➢ CO2 reduct
Slide 37: Improving P/E Ratio | ESG Management: Environment
Improving P/E Ratio | ESG Management Environment • Addressing climate change remains one of our top priorities, and we will continue to proactively disclose relevant information. • Our greenhouse gas emissions reduction targets were certified by SBTi and our group was selected on the prestigious A L
Slide 38: Improving P/E Ratio | ESG Management: Social
Improving P/E Ratio | ESG Management Social • Under our human capital management framework, we place a strong emphasis on the development of talent and organizational capabilities. • While our engagement score remains at a solid level, we are working to further strengthen organizational capabilities
Slide 39: Improving P/E Ratio | ESG Management: Governance
Improving P/E Ratio | ESG Management Governance • We place emphasis on strengthening risk management and governance effectiveness as foundations for sustainable growth and enhanced corporate value. • We promote highly transparent management though effectiveness evaluations of the Board of Directors
Slide 40: Agenda
1. FY2026.3 Full-Year Financial Results 2. FY2027.3 Full-Year Financial Plan 3. Update on Medium- to Long-Term Plan Agenda & Aspiration 4. Action to Implement Management that is Conscious of Cost of Capital and Stock Price 5. Appendix Copyright © ARE Holdings, Inc. All rights reserved. 40
Slide 41: Precious Metals Recycling | Our Strengths
Precious Metals Recycling | Our Strengths Extensive nationwide collection network built on long-standing technology and expertise Extensive Nationwide Collection Network Long-Standing Technology and Expertise Assay Techniques Sales Offices ✓ Representative samples are 19 sites extracted by homogeniz
Slide 42: Precious Metals Business | Transaction Types
Precious Metals Business | Transaction Types Return bullion Customers ARE Holdings Group Return Type Assay Refine & Finish Collect Measure the amount of Refine and mold precious metals contained in metals into high grade the raw materials bullion products Since there is no purchase of precious metal
Slide 43: Precious Metals Business | Two Income Sources
Precious Metals Business | Two Income Sources • Income of the Precious Metals Business comprises refining fees, which provide stable earnings, and recovery differentials, which are impacted by precious metal price levels. • As precious metal prices are largely hedged, exposure to price fluctuations
Slide 44: Precious Metals Recycling | Metal Composition by Business Sector
Precious Metals Recycling | Metal Composition by Business Sector Composition Ratio of Metal Element Gold Palladium Platinum Rhodium Dentistry － 30 - 50% 50 - 70% Less than 10％ Jewelry － Over 70% Less than 10% 10 - 30% Electronics － Over 70% Less than 10% Less than 10% Catalyst － 50 - 70% 30 - 50% Le
Slide 45: Precious Metals Recycling | Gold Collection Volume
Precious Metals Recycling | Gold Collection Volume • Gold collection volume has increased every year since FY2022.3, mainly in the jewelry sector amid rising gold prices. • Collection volume in FY2026.3 decreased YoY as a result of prioritizing profitability. Gold Price and Collection Volume Trends
Slide 46: North American Refining | Business Model
North American Refining | Business Model Source of Profit Main Business Partners in North America Refining ➢ Refine raw materials received from mining companies and jewelry scrap dealers. Receipt Refining Fees Free Metal* Jewelry Scrap Dealers Assay Refine Offer financial solutions *difference betwe
Slide 47: North American Refining | Prepayment Transactions
North American Refining | Prepayment Transactions • Prepayment transactions are incorporated into refining contracts and help securing refining transactions. • While prepayment transactions temporarily increase assets and liabilities, they contribute to profit through interest income and also help s
Slide 48: ESG Recycling to Reduce Environmental Impacts
ESG Recycling to Reduce Environmental Impacts • Our products made from recycled materials can reduce CO2 emissions during the manufacturing process by 98% compared to mined raw materials. • We reduce environmental impact by absorbing NOx generated during the manufacturing process into water and reus