JSP : Third Quarter Results for the Fiscal Year Ending March 31, 2025

Representative: Tomohiko Okubo, President, Representative Director

Contact person: Ryoji Suzuki, General Manager, Accounting Department, Finance & Accounting Division

Preparation of supplementary materials for quarterly financial results: None

Note: The original disclosure in Japanese was released on January 31, 2025 at 15:30 (GMT +9).

(All amounts are rounded down to the nearest million yen)

1. Third Quarter Results (April 1, 2024 to December 31, 2024) for the Fiscal Year Ending March 31, 2025

1. Consolidated business performance (Percentages represent year-on-year changes)

Note: Revisions to the most recently announced consolidated forecast: Yes

For details, please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation Regarding Consolidated Financial Forecasts and Other Forward-looking Information" on page 2 of the attached documents.

* Notes

1. Significant changes in the scope of consolidation during the period: None
2. Application of special accounting methods in the preparation of quarterly consolidated financial statements: Yes

(Note) Please refer to "2. Quarterly Consolidated Financial Statements and Main Notes, (4) Notes regarding the Quarterly Consolidated Financial Statements (Notes regarding the Accounting Methods Specific to the Preparation of the Quarterly Consolidated Financial Statements)" on page 10 of the attached documents for details (Japanese only).

1. Changes in accounting policies and accounting-based estimates, and restatements
2. 1. Changes in accounting policies due to revisions in accounting standards, others: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting-based estimates: None
   4. Restatements: None
3. Number of shares outstanding (common stock)
4. 1. Number of shares outstanding at the end of the period including treasury shares

• The current quarterly financial report is not subject to quarterly review by certified public accountants or an auditing firm.
• Cautionary statement with respect to forward-looking statements
  Forecasts of future performance in this report are based on assumptions judged to be valid and information currently available to JSP. Actual results may differ significantly from these forecasts for a number of factors. Please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation Regarding Consolidated Financial Forecasts and Other Forward- looking Information" on page 2 of the attached documents for assumptions for forecasts and notes of caution for usage.

(Review by certified public accountants or an auditing firm)

The quarterly financial report with the review report is scheduled to be disclosed on February 7, 2025, after the completion of the review by an auditing firm.

JSP Corporation (7942) Third Quarter Results for the Fiscal Year Ending March 31, 2025

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

In the first nine months of the current fiscal year, the global economy remained uncertain due to the prolonged war in Ukraine, growing tensions regarding the escalation of conflict in the Middle East, concerns over the future policy trends in North America, signs of an economic slowdown in Europe, and the influence of the Chinese economy. There was a modest upturn of the Japanese economy backed primarily by an improvement in the employment and income environment and advances in the normalization of social and economic activities, although there were concerns regarding inflation, fluctuations in financial and capital markets and risk of downturn in overseas economies.

The foamed plastics industry in Japan faced severe business conditions due to the impact of price hikes including soaring raw material prices, the continued standstill in demand recovery for the fisheries and agriculture sectors, and suspension of production and shipments by some manufacturers in the automotive sector.

Under these circumstances, JSP has started a new medium-term business plan, "Change for Growth 2026," with the three basic concepts of "making the entire JSP Group more profitable", "contributing to society by supplying foamed plastic products" and "strengthening the management base," and is working to further enhance its corporate value by improving capital profitability and growth potential and by implementing sustainability management through environmental responsive products and the recycling of plastics.

Sales were higher than the same period of the previous fiscal year mainly because of the revisions of prices of our products. The operating profit decreased from the same period of the previous fiscal year due to factors including the lower sales volume of value-added products.

Net sales in the first nine months were 108,290 million yen, up 5.7% from the same period of the previous fiscal year. Operating profit decreased 10.7% to 5,739 million yen, ordinary profit decreased 5.9% to 6,450 million yen and profit attributable to owners of parent decreased 8.9% to 4,906 million yen.

Results by business segment were as follows.

Please note that the subsidiaries that were previously classified in the "Other" segment have been merged with the "Extrusion Business" due to the change in business management classification from the first quarter of the current fiscal year. The segment information for the first nine months of the previous year is based on the figures that were reclassified according to the new segmentation.

Extrusion Business

Sales of materials for household products, mainly STYRENPAPER, a foamed polystyrene sheet used in food packaging, increased. This was mainly the result of higher sales volume for STYRENPAPER in the food tray category, although the sales volume for MIRABOARD, a material used for advertising displays, remained at the same level.

Sales of industrial products, including MIRAMAT, a foamed polyethylene sheet used for industrial packaging materials and flat panel displays, were lower than the same period of the previous fiscal year. Sales volume of value-added products, general-purpose products and general packaging materials decreased, despite efforts to revise product prices.

Sales of MIRAFOAM, an extruded board made of foamed polystyrene, and other construction and civil engineering materials remained at the same level as the same period of the previous fiscal year, due to the increase in sales volume of materials for fabrication in the building construction and housing markets such as MIRAFOAM Λ(LAMBDA) and pre-cut products offsetting the decrease in the sales volume of materials used for civil engineering applications.

Total sales in this segment increased due to the progress in product price revisions, while total sales volume remained at the same level as the same period of the previous fiscal year. Earnings decreased due to the lower sales volume of industrial products and civil engineering materials.

As a result, sales in the Extrusion Business increased 2.4% to 37,447 million yen and operating profit decreased 23.6% to 1,530 million yen.

Bead Business

Sales volume of high-performance products, mainly ARPRO, an expanded polypropylene product manufactured and sold worldwide, remained at the same level due to strong demand in the non-automotive sectors offsetting lower

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JSP Corporation (7942) Third Quarter Results for the Fiscal Year Ending March 31, 2025

demands in the automotive sectors. Sales increased due to product price revisions and other factors.

In Japan, sales volume in the non-automotive sector increased, while sales volume in the automotive sector decreased because of suspension of production and shipments by some automobile manufacturers. In North America, sales volume remained at the same level due to strong demand of returnable containers, despite a decrease in the automotive sector. In South America, sales volume in the automotive sector increased. In Europe, sales volume decreased due to the lower demand in the HVAC applications. In China and in Taiwan, sales volume in the packaging materials sector increased. In Southeast Asia, sales volume in the packaging materials sector decreased.

Sales of expandable polystyrene bead products, chiefly STYRODIA, decreased mainly due to lower sales volume because of decline in demand for these products in the fisheries and agriculture sectors.

Total sales in this segment increased because of product price revisions, while sale volume decreased from the same period of the previous fiscal year. Earnings decreased due to higher cost of labor, despite efforts of the cost reductions.

As a result, sales in the Bead Business increased 7.5% to 70,842 million yen and operating profit decreased 4.3% to 5,048 million yen.

(2) Financial Position

Total assets as of December 31, 2024 were 154,454 million yen, up 2,848 million yen from March 31, 2024. Current assets increased 2,132 million yen to 80,288 million yen mainly due to increases in notes and accounts receivable-trade of 1,637 million yen, electronically recorded monetary claims-operating of 1,441 million yen and raw materials and supplies of 1,344 million yen, offsetting a decrease in cash and cash deposits of 2,202 million yen. Non-current assets increased 716 million yen to 74,166 million yen, mainly due to a net increase of 1,705 million yen in machinery, equipment and vehicles as a result of factors including an increase in construction in progress.

Total liabilities as of December 31, 2024 were 51,894 million yen, up 358 million yen from March 31, 2024. Current liabilities increased 1,452 million yen to 37,218 million yen mainly due to an increase in short-term borrowings of 2,300 million yen. Non-current liabilities decreased 1,094 million yen to 14,676 million yen.

As a result, net assets totaled 102,559 million yen and the shareholders' equity ratio increased 0.5 percentage points to 63.3%.

A summary of cash flows and major components are as follows.

Net cash provided by operating activities totaled 6,206 million yen, a decrease of 3,687 million yen from the same period of the previous fiscal year. Inflows included 6,446 million yen from profit before income taxes and 5,829 million yen from depreciation. Outflows included an increase in trade receivables of 2,965 million yen and income taxes paid of 1,633 million yen.

Net cash used in investing activities totaled 6,776 million yen, an increase of 1,396 million yen from the same period of the previous fiscal year. Outflows included 6,173 million yen for the purchase of non-current assets.

Net cash used in financing activities totaled 1,895 million yen, a decrease of 4,867 million yen from the same period of the previous fiscal year. Inflows included a net increase of 2,300 million yen in short-term borrowings and proceeds from long-term borrowings of 3,000 million yen. Outflows included 4,528 million yen for the repayment of long-term borrowings and cash dividends paid of 2,096 million yen.

As a result, cash and cash equivalents totaled 11,880 million yen as of December 31, 2024, down 2,772 million yen from March 31, 2024.

(3) Explanation Regarding Consolidated Financial Forecasts and Other Forward-looking Information

We have revised the consolidated forecast for the fiscal year ending March 31, 2025, which was announced on October 31, 2024, for the following reasons.

1. Sales volume of industrial products, including MIRAMAT, a foamed polyethylene sheet used for industrial packaging materials and flat panel displays, is expected to decrease due to a decline in demand for value-added products and a delay in the recovery of demand for general-purpose products for the Japanese automotive industry. Sales volume of high-performance products, mainly ARPRO, is also expected to decrease due to the slow recovery

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JSP Corporation (7942) Third Quarter Results for the Fiscal Year Ending March 31, 2025

in demand in the Japanese automotive sector. As a result of these decreases in sales volume, we expect lower operating profit than our previous forecast, despite efforts to reduce costs through measures such as improving productivity and reducing fixed costs.

2. Non-operating income is expected to increase mainly due to the increases in foreign exchange gain and interest income, as a result of fluctuations in exchange rates and rises in interest rates.

Based on the above reasons, we have revised the consolidated forecast for the fiscal year ending March 31, 2025, as follows.

Revision of the consolidated financial forecasts for the fiscal year ending March 31, 2025 (April 1, 2024 - March 31, 2025)

Note: The above financial forecasts are based on information available at the present time and actual results may differ due to a variety of factors that may arise in the future.

• This summary report is solely a translation of "Kessan Tanshin" (in Japanese, including the attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.

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