Japan Steel Works : Business Results for the First Half of the Fiscal Year 2025 (Ended March 31, 2026)

November 14, 2025

Note

The performance forecasts and other forward-looking statements included in this material are based on the information that was available to The Japan Steel Works, Ltd. (the "Company") and certain assumptions deemed to be reasonable at the time this material was prepared, and the actual results may differ significantly from these forecasts due to a variety of reasons.

This material has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated version and the Japanese original, the original shall prevail.

Business Segment

Industrial Machinery Products Business Material and Engineering Business

Production

Base

Hiroshima Yokohama Meiki (Nagoya) Muroran

Other Businesses

Subsegment

Plastic production and processing machinery

Molding machines

Defense equipment

Others

Steel forgings and plates

Engineering, etc.

Major Product

• Pelletizer

• Plastic molding machine (injection molding machine, blow molding machine)

• Artillery

• Wheeled armored vehicle

• Missile canister

  • Laser-applied equipment

    • FPD equipment

    • Power semiconductor manufacturing equipment

• Rotor shaft for generator / steam turbine

• Hydrogen storage steel pressure vessel

  • Twin-screw extruder

  • Film and sheet manufacturing equipment

  • Magnesium molding machine

    (Source: JMSDF website)

    • Press machine

    • Vacuum laminator

    • Deposition system

      • Parts for nuclear power reactor / steam generator

      • Clad steel plate

  • Non-destructive testing

    • Photonic

    • Composite material

    • Metal material

• Steam turbine / generator (thermal / nuclear) ⚫Telecommunication

• Reactor pressure vessel components etc. (light water ⚫Optical equipment

  reactor, fast breeder reactor, high-temperature gas-cooled reactor, fusion reactor etc.)

• Various tanks for chemical / oil / gas industries

Heavy electrical equipment

Renewable energy etc.

Oil / Gas industry

Communication /

Electronic equipment

• Plastic

• Battery, food packaging, optical device, semiconductor

• Automotive, electrical / electronic equipment, everyday goods, IT device etc.

• Defense equipment

• OLED / LCD panel

• Printed circuit board, semiconductor package substrate

Petrochemical / gas chemical industry

Plastic products

Ministry of Defense

Display panel

Automotive components

Japan Coast Guard

Semiconductor

Customer /

Market

Application

(Source: JGSDF website)

PART Ⅰ

Results for the 1st Half of FY2025

06 Summary

07 Status of Orders Received, Sales and Profits 08 Analysis on Changes in Operating Profit

09 Results by Segment

1. Industrial Machinery Products Business

2. Material and Engineering Business

PART Ⅱ

Forecasts for FY2025

1. Status of Orders Received, Sales and Profits

2. Analysis on Changes in Operating Profit

3. Forecasts by Segments

4. Industrial Machinery Products Business

5. Material and Engineering Business

6. Changes in Order Backlog and Forecasts

7. Status of Capital Investment and Depreciation, Cash Flows, Financial Position, and R&D Expenses

8. Dividend Policy of JGP2028 and the Results

PART Ⅲ

Business Overview

1. Industrial Machinery Products Business -Market sentiment for the main products

2. Material and Engineering Business -Market sentiment for the main products

3. Plastic Production and Processing Machinery -Progress and

   outlook of investment in Hiroshima Plant

4. Global Expansion

5. Defense Equipment -Production capacity expansion through optimization of manufacturing locations and mutual complementation on track

6. Thermal and Nuclear Power Products -Market environment

7. Thermal and Nuclear Power Products -Capital investment

   decision to increase production capacity

8. Establishment of a New R&D Site

   Reference Materials:

   Trends in Sales and Profit / Trends in Major Assets and Cash Flows

   /Corporate philosophy, starting with purpose

   [PART I] Results for the 1st Half of FY2025

   • Orders received

     Plastic production and processing machinery fell short of the initial forecast due to delays in investment decisions triggered by U.S. tariff policies

     On the other hand, orders for thermal and nuclear power products as well as defense equipment exceeded the initial forecasts, keeping the overall progress on track

   • Sales

     The ample order backlog was steadily converted into sales, resulting in progress largely in line with the plan and achieving YoY growth

   • Profits

Progressed as planned

Profits increased YoY mainly due to increase of sales and price improvement

Orders received decreased, while sales and profit increased YoY

(Unit: Billion Yen)

Operating profit increased by ¥3.9 billion due to the increase of sales and price improvement

（Unit: Billion Yen）

Machinery: +4.9

Material: +0.8

+5.7

(6.0)

Machinery: (0.2)

Material: (0.4)

(2.3)

Variable cost

Machinery: (1.6)

Material: (0.7)

+0.1

+1.0

12.1

8.2

Fixed cost

Impact of forex fluctuations

Unclassifiable expenses

Change in production, sales and prices

Average exchange rates for sales in USD FY2024 1H: JPY152/USD FY2025 1H: JPY146/USD

FY2024 1st half FY2025 1st half

Industrial Machinery Products: Orders received decreased YoY, sales and profit increased YoY Material and Engineering: Sales and profit were roughly equivalent level as the previous year, orders received increased YoY

Industrial Machinery Products

(Unit: Billion Yen)

Material and Engineering

Sales and profit progressed as planned, resulting in YoY growth

Orders received decreased YoY due to investment stagnation in plastic production and processing machinery

(Unit: Billion Yen)