FY2025 Results Presentation Q&A Summary

‌No.

Category

Q

A

1

Valve Manufacturing Business (Semiconductor equipment)

Current recovery status in the semiconductor sector and impact of China's rare earth procurement issues

Orders remained sluggish through 2025 Q4. However, recent orders have recovered to a level exceeding the 2025 average. In addition, we have several large-scale orders scheduled, and therefore we are confident that sales recovery from 3Q onward will materialize.

Regarding rare earth procurement, the impact at this stage is limited. In preparation for future demand expansion and potential procurement risks, we may need to designate alternative procurement sources as necessary.

2

Valve Manufacturing Business (Semiconductor equipment)

Background behind the sales plan of Semiconductor Equipment market being limited to approximately +15%, despite semiconductor equipment manufacturers forecasting growth of over 20% in 2026;

current business conditions;

and profitability outlook for 2026 following the start-up of the plant in Vietnam

The order intake visibility was limited at the time we formulated plan in 2025 Q4, we set the growth rate at approx. 15%. Based on the current order intake, we believe this to be a highly achievable target.

The plant in Vietnam manufactures highly commodity products and is equipped with automated facilities. If sales volumes progress as planned, we expect an improvement in profitability.

3

Valve Manufacturing Business (Plan)

Breakdown of SG&A expenses expected to increase in 2026

We mainly expect increases in labor cost and business activity-related costs. These include higher rental expenses resulting from the relocation of our U.S. warehouse, as well as preliminary costs related to M&A.

‌No.

Category

Q

A

4

Valve Manufacturing Business (Building & Facilities)

Sales result and future plan for the U.S. data center market

the U.S. data center market remains robust, with competitors aiming to expand earnings. To ensure steady order acquisition, we positioned 2025 as a year for preparation, including warehouse relocation, inventory buildup, and capacity expansion. Order intake in 2025 remains just under ¥300 million; however, from 2026 onward, we aim for double-digit revenue contribution.

5

Consolidated (Materials)

Annual copper usage volume and booking status

Total copper usage across the Valve Business and the Metal Solutions Business is approx. 4,000 tons per month.

In the Valve Business, we are able to increase price in line with market trends, while price increase is more difficult for brass bar products; therefore, hedging measures are implemented. The booking ratio is approx. 60% overall.