Kobe Steel : Summary of Q&A Session at Kobe Steel Financial Results Briefing for the Third Quarter of Fiscal 2025

Financial Results for the Cumulative Third Quarter of Fiscal 2025 and Forecast for the Full Fiscal Year

February 6, 2026 Kobe Steel, Ltd.

Table of Contents

• Summary of Financial Results and Forecast

• Financial Results for the Cumulative Third Quarter

  of Fiscal 2025

• Forecast for Fiscal 2025

• Return to Shareholders

• Segment Information

• Reference Information

Summary

Financial Results for the Cumulative Third Quarter of Fiscal 2025

• In the materials businesses, demand in key sectors such as automotive, construction, and civil engineering remained roughly at the same level. Demand for construction machinery also continued to be sluggish, particularly in Japan and Europe.

• Ordinary profit decreased year on year to 89.5 billion yen, primarily due to cost increases centered on fixed costs and the elimination of compensation income in the construction merchinery segment. Profit attributable to owners of parent decreased year on year to 84.3 billion yen. Forecast for Fiscal 2025

• Full-year demand is expected to remain at a level similar to the previous forecast, as a significant recovery in demand is unlikely even in the fourth quarter.

• Despite a projected decrease in profit due to the deterioration in metal spreads and the extended statutory inspection period for the Kobe Power Plant No. 3 unit*, the forecast for full-year ordinary profit and profit attributable to owners of parent remains unchanged at 110.0 billion yen and 100.0 billion yen respectively as previously forecast, primarily due to an expected increase in profits in the machinery businesses and improvements in inventory valuation. ROIC is expected to remain at approx. 5%, as previously forecast.

• The forecast for free cash flow has been revised upward to 110.0 billion yen, reflecting the postponement of investments and other factors. The D/E ratio is expected to remain at approx. 0.65 times, as previously forecast.

  * About the extended statutory inspection period for the Kobe Power Plant No. 3 unit

  • A fixture for a large nut securing the high-pressure turbine had to be cut as an emergency measure to remove the nut, which could not be loosened. Considering the time required for the fabrication of a replacement large nut, we have extended the periodic inspection period. Due to the prolonged shutdown, we anticipate a decrease in earnings.

  • We are in the process of coordinating with the relevant parties, with plans to resume operation around mid-May (extended from the originally scheduled mid-January).

  Return to Shareholders

• The Company's policy of paying a year-end dividend of 40 yen per share（an annual dividend of 80 yen

per share, with a dividend payout ratio of 31.5%） remains unchanged from the previous announcement.

Summary of Financial Results and Forecast

Year on year

Net Sales 1,778.0 billion yen (105.9) billion yen

89.5

Ordinary

Profit (Loss) billion yen (43.3) billion yen

Compared to the previous forecast

Net Sales 2,440.0 billion yen (25.0) billion yen

110.0

Ordinary

Profit (Loss) billion yen ー

Excluding

Inventory Valuation

96.5 billion yen

(33.8) billion yen

Excluding

Inventory Valuation

118.0 billion yen

(6.0) billion yen

Profit (Loss) Attributable to Owners of Parent

84.3 billion yen (32.5) billion yen

Profit (Loss) Attributable to Owners of Parent

Free Cash

100.0 billion yen ー

Flow 110.0 billion yen 10.0 billion yen

Financial Results for the Cumulative Third Quarter of

FY2024 Actual

FY2025 Forecast (Current)

Fiscal 2025

*The gain on bargain purchase included in extraordinary income (loss) has been retroactively revised to reflect the final amount, following the finalization of the provisional accounting at the end of the fourth quarter of fiscal 2024.