Japan Steel Works : Consolidated Financial Results for the Year Ended March 31, 2026 (Under Japanese GAAP)

May 13, 2026

Company name: The Japan Steel Works, Ltd. Listing: Tokyo Stock Exchange

Securities code: 5631

URL: https://www.jsw.co.jp/

Representative: Toshio Matsuo, Representative Director & President Inquiries: Kenji Terada, General Manager, General Affairs Department Telephone: +81-3-5745-2001

Scheduled date of annual general meeting of shareholders: June 22, 2026 Scheduled date to commence dividend payments: June 23, 2026

Scheduled date to file annual securities report: June 19, 2026 Preparation of supplementary material on financial results: None

Holding of financial results briefing: Yes (For Securities Analysts and Institutional Investors)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)
   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      March 31, 2026	274,852	10.6	25,306	10.9	26,051	10.9	19,239	7.1
      March 31, 2025	248,556	(1.6)	22,824	26.7	23,495	17.8	17,961	25.8

      Note: Comprehensive income For the fiscal year ended March 31, 2026:	¥26,053 million	[21.4%]
      For the fiscal year ended March 31, 2025:	¥21,464 million	[(3.9)%]

      	Basic earnings per share	Diluted earnings per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2026	261.38	-	9.5	6.3	9.2
      March 31, 2025	244.03	-	9.7	6.1	9.2

      Reference: Share of profit (loss) of entities accounted for using equity method

      For the fiscal year ended March 31, 2026: ¥(1) million

      For the fiscal year ended March 31, 2025: ¥16 million

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of	Millions of yen	Millions of yen	%	Yen
      March 31, 2026	429,983	213,831	49.4	2,885.87
      March 31, 2025	398,122	195,101	48.5	2,625.13

      Reference: Equity

      As of March 31, 2026: ¥212,431 million

      As of March 31, 2025: ¥193,220 million

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen (16,893) (4,567)	Millions of yen (17,103) (12,272)	Millions of yen 36,089 (5,723)	Millions of yen 77,387 75,150

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Fiscal year ended March 31, 2025	-	38.00	-	48.00	86.00	6,329	35.2	3.4
   Fiscal year ended March 31, 2026	-	44.00	-	48.00	92.00	6,772	35.2	3.3
   Fiscal year ending March 31, 2027 (Forecast)		46.00		46.00	92.00		35.6

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027)

(Percentages indicate year-on-year changes.)

1. Significant changes in the scope of consolidation during the period: None

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2026	74,415,909 shares
      As of March 31, 2025	74,408,985 shares

   2. Number of treasury shares at the end of the period

      As of March 31, 2026	805,130 shares
      As of March 31, 2025	804,900 shares

   3. Average number of shares outstanding during the period

      Fiscal year ended March 31, 2026	73,608,860 shares
      Fiscal year ended March 31, 2025	73,601,588 shares

      [Reference] Overview of non-consolidated financial results 1. Non-consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)
      1. Non-consolidated operating results (Percentages indicate year-on-year changes.)

         	Net sales		Operating profit		Ordinary profit		Profit
         Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
         March 31, 2026	156,584	9.2	11,740	30.6	18,494	30.1	15,553	41.1
         March 31, 2025	143,370	(10.7)	8,988	(10.4)	14,218	2.7	11,021	13.4

         	Basic earnings per share	Diluted earnings per share
         Fiscal year ended	Yen	Yen
         March 31, 2026	211.30	-
         March 31, 2025	149.75	-

      2. Non-consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of	Millions of yen	Millions of yen	%	Yen
      March 31, 2026	339,474	157,712	46.5	2,142.52
      March 31, 2025	299,839	145,694	48.6	1,979.43

      Reference: Equity

      As of March 31, 2026: ¥157,712 million

      As of March 31, 2025: ¥145,694 million

      • Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

      • Proper use of earnings forecasts, and other special matters

      (Explanation of Appropriate Use of Forward-Looking Information)

      Forward-looking statements, such as earnings forecasts, contained in this material are forecasts judged by the Company based on information available at the time of publication, and are not intended to be a promise by the Company to realize them. Actual financial results, etc. may differ substantially due to various factors. For the conditions on which earnings forecasts are predicated and precautions for using earnings forecasts, please refer to Appendix "1. Please refer to "Summary of Business Results

4. Future Outlook". (Other special notes)

The Company plans to hold an earnings briefing for securities analysts and institutional investors on Tuesday, May 19, 2026. The financial results briefing materials used in the briefing are scheduled to be posted on the Company's website after 11:30 a.m. on the day of the meeting.

• Table of Contents for the Attached Documents

  1. Overview of Operating Results and Others………………………………………………………………………………… 2

     1. Overview of operating results for the current fiscal year 2

     2. Overview of the financial position for the current fiscal year 3

     3. Overview of cash flows for the current fiscal year 3

     4. Future outlook 4

     5. Basic policy on profit distribution and dividends for the current and next fiscal years………………………………… 4

  2. Basic Policy Regarding Selection of Accounting Standards 5

  3. Consolidated Financial Statements and Significant Notes Thereto………………………………………………………… 6

     1. Consolidated balance sheet 6

     2. Consolidated statement of income and consolidated statement of comprehensive income 8

        Consolidated statement of income 8

        Consolidated statement of comprehensive income 10

     3. Consolidated statement of changes in equity 11

     4. Consolidated statement of cash flows 13

     5. Notes to the consolidated financial statements 15

        (Note on premise of going concern) 15

        (Notes to the consolidated balance sheet) 15

        (Notes to the consolidated statement of income) 15

        (Notes to segment information, etc.) 16

        (Notes to per-share information) 18

        (Notes on significant subsequent events) 19

  4. Other 20

     1. Additional information 20

     2. Changes in officers 21

1

1. Overview of Operating Results and Others

   1. Overview of operating results for the current fiscal year

During the current fiscal year, the business environment surrounding the Group saw delays in investment decisions stemming from U.S. tariff policies spread to the plastic production and processing machinery sector within the Industrial Machinery Business. Meanwhile, demand for defense-related equipment has increased under the government's policy to strengthen national defense capabilities. In the Material and Engineering Business, we saw rapid growth in AI and data centers, as well as an expansion of power-related investments driven by concerns over energy security.

Given these circumstances, the Group has defined its vision for the fiscal year ending March 31, 2034-ten years from now-under the banner of "Purpose." We aim to simultaneously achieve our sustainability goal of "contributing to the realization of a sustainable and prosperous world through the development and implementation of industrial machinery and new materials that solve social issues" and our financial goal of "growing into a corporate group with sales of 500.0 billion yen." We have set targets for the fiscal year ending March 31, 2029, which marks the midpoint of this journey. To address material issues and enhance sustainable corporate value, we formulated the mid-term management plan "JGP2028" and have been advancing our business activities based on this plan.

Regarding the Group's performance for the current fiscal year, total orders received amounted to 309,423 million yen (down 0.3% year-on-year), remaining at the same level as the previous year. This was due to a decrease in orders received in the Industrial Machinery Business, offset by an increase in the Material and Engineering Business. Net sales totaled 274,852 million yen (up 10.6% year-on-year), as an increase in the Industrial Machinery Business offset a decline in the Material and Engineering Business. In terms of profit, operating profit was 25,306 million yen (up 10.9% year-on-year), ordinary profit was 26,051 million yen (up 10.9% year-on-year), and profit attributable to owners of parent was 19,239 million yen (up 7.1% year-on-year).

The results by segment are as follows.

(Industrial Machinery Business)

Orders received totaled 248,213 million yen (down 4.0% year-on-year), as while orders for other industrial machinery, such as ELA equipment for FPD, increased, orders for defense-related equipment decreased due to a decline following a large-scale order in the same period of the previous year. Net sales and operating profit were 226,248 million yen (up 13.7% year-on-year) and 20,039 million yen (up 14.0% year-on-year), respectively, driven by a robust order backlog across the board.

(Unit: million yen)

2