ARE : Presentations of Financial Results for First Half FY2025.3

About this update from Are Holdings, Inc.

ARE Holdings, Inc. Financial Results for Q2 for fiscal year ending March, 2025 (FY2024) October 30, 2024 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 which actual results materially differ from forecasts of this report. Copyright © ARE Holdings, Inc. All rights reserved. 2 Financial Results for Q2 FY2025.3 (April 1, 2024 ～ September 30, 2024) Appendix Copyright © ARE Holdings, Inc. All rights reserved. 3 Business Highlights of Q2 FY2025.3 Revenue YoY Q2 Plan Achievement Rate* 240.4 billion yen +96.1 billion yen 133.5 % Operating Profit YoY Q2 Plan Achievement Rate* 8.3 billion yen +2.6 billion yen 97.9 % * Progress rate against the six-month plan ending September 30, 2024 Reasons for an Increase in Revenue The continuing rise in gold prices led to the increase in gold collection especially in the jewelry sector. Reasons for an Increase in Profit There was a loss in the same period last year due to the decrease in rhodium prices, but no loss this fiscal year as prices were stable. Rising gold prices as well as an increase in collection volume. Equity method investment gain from RENATUS Co., Ltd is accounted starting this fiscal year. Copyright © ARE Holdings, Inc. All rights reserved. 4 Consolidated Results Revenue Operating Profit Profit Q2 FY2024.3 Results 144.2 5.7 5.3 FY2025.3 Results YoY Change 240.4 + 96.1 8.3 + 2.6 6.6 + 1.3 Unit ： billion yen FY2025.3 Revised Forecast 480.0 18.0 13.1 * "Profit" is Profit attributable to owners of parent Revenue and operating profit for the second quarter of FY2024.3 show the amounts excluding discontinued operations (Japan Waste Co., Ltd.). Copyright © ARE Holdings, Inc. All rights reserved. 5 Reasons for Change in Operating Profit Unit ： billion yen * Amounts may not add up due to rounding. Unit ： Yen Remarks Precious Q2(Apr. to Sep.) Q2(Apr. to Sep.) FY2024.3 FY2025.3 • The collection volume of gold increased, mainly Metal Prices Average price for Average price Change in the jewelry sector. (per gram) the period for the period • In the North American refining business, while Gold 8,869 11,813 2,945 the trading sector experienced growth, the product sector remained sluggish, leading to a Palladium 6,175 4,876 △ 1,299 decrease in overall profits. • The results of Japan Waste, which became a Platinum 4,508 4,858 349 discontinued operation, were not included in the previous fiscal year, but the equity method Rhodium 23,022 22,519 △ 503 investment profit and loss of Renatus is included in the current fiscal year. Copyright © ARE Holdings, Inc. All rights reserved. 【 Reference 】 Gold…Quote from mining company, Palladium …Nikkei low price, Platinum …retail price(exclude tax), Rhodium …Metals Week NY Dealer Price 6 Businesses Precious Metals Business Revenue 240.3 billion yen （ YoY +96.1 billion yen ） Operating Profit 7.5 billion yen （ YoY +1.6 billion yen ） Environmental Preservation Business Revenue － billion yen （ YoY － billion yen ） Operating Profit 1.0 billion yen （ YoY +1.0 billion yen ） Profit 1.0 billion yen （ YoY +1.0 billion yen ） Equity method investment gain from Renatus Co., Ltd is included starting this fiscal year (1.0 billion yen). Japan Waste's results are excluded from the year-ago period. "Other" includes sales of Rh and revenue from the North American refining business. Revenues, operating profit and profit for the same period of the previous fiscal year exclude discontinued operations (Japan Waste Co., Ltd.). Copyright © ARE Holdings, Inc. All rights reserved. 7 Precious Metals Business ｜ Collection Breakdown(YoY) Composition ratio by element Amount of Business environment Au Pd Pt Rh Au collected Although the recycling market continues to YoY shrink due to material shifts and Dentistry － technological innovation, we secured new 97 ％ customers through improved sales efficiency 30 ～ 50 ％ 50 ～ 70 ％ Less and the implementation of new measures. As than10 ％ a result, we maintained the same collection volume as the previous year. Although the soaring gold price has subsided, YoY increased awareness of recycling has led to a Jewelry － large amount of gold being circulated into Less 167 ％ the recycling market, and the collection Over 70% 10 ～ 30 ％ volume has increased compared to the same than10 ％ period last year. Due to the slump in demand for BEVs, the YoY amount of collections from related companies Electronics － has decreased, but demand for AI 103 ％ Less Less semiconductor-related products has Over 70% recovered significantly and the situation is on than10 ％ than10 ％ the way to recovery. The amount of environmental catalysts YoY generated decreased due to process Catalyst － 97 ％ improvements by major catalyst manufacturers, and production adjustments Less 50 ～ 70 ％ 30 ～ 50 ％ for chemical catalysts also contributed to the than10 ％ large decrease. The symbols in the table indicate the percentage of each category in the total recovery volume (exc. Ag and Cu). Comments for each area are compared with the same period last year. Copyright © ARE Holdings, Inc. All rights reserved. 8 Precious Metals Business ｜ Impact of Gold Collection Q2 FY2024.3 Q2 FY2025.3 Breakdown of Revenue Breakdown of Revenue Changes in the amount of Au collected Copyright © ARE Holdings, Inc. All rights reserved. 9 Precious Metals Business ｜ Volume of Precious Metals Collected Unit ： kg Unit ： kg Unit ： kg Unit ： kg Copyright © ARE Holdings, Inc. All rights reserved. 10 Precious Metals Business ｜ Trend in Precious Metals Prices Au Pd Q2 FY2024.3 Q2 FY2025.3 （ ¥/g ） Reference ： Quote from mining company Q2 FY2024.3 Q2 FY2025.3 （ ¥/g ） Reference ： Nikkei low price Copyright © ARE Holdings, Inc. All rights reserved.

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