Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (Japanese Accounting Standards)

May 13, 2026

Name of Listed Company: Mitsubishi Materials Corporation Listing: Tokyo Stock Exchange Stock Code: 5711 URL: https://www.mmc.co.jp/ Representative: Tetsuya Tanaka, Executive Officer and President

Contact: Kota Nagashima, General Manager, Investor Relations Dept. Tel: +81-3-5252-5290 Scheduled Date for Ordinary General Meeting of Shareholders: June 23, 2026

Scheduled Date of Start of Dividend Payment: June 12, 2026

Scheduled Filing Date of Annual Securities Report: June 22, 2026

Supplementary Materials for the Financial Results: Yes

Investor Conference for the Financial Results: Yes (For Institutional Investors)

(Amounts of less than one million yen are omitted)

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
      	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Year ended March 31, 2026	1,844,053	-6.0	60,502	63.0	97,556	62.0	40,581	19.1
      Year ended March 31, 2025	1,962,076	27.4	37,118	59.5	60,235	11.3	34,076	14.4

      (Note) Comprehensive income: Year ended March 31, 2026: ¥78,568 million (74.4%) Year ended March 31, 2025: ¥45,056 million (-45.4%)

      	Profit per share	Diluted net income per share	Return on equity	Ordinary profit to total assets	Operating profit to net sales
      	Yen	Yen	%	%	%
      Year ended March 31, 2026	310.56	-	5.7	3.6	3.3
      Year ended March 31, 2025	260.82	-	5.1	2.7	1.9

      (Reference) Share of profit of entities accounted for using equity method: Year ended March 31, 2026: ¥21,201 million

      Year ended March 31, 2025: ¥17,539 million

   2. Consolidated Financial Position

      	Total assets	Total net assets	Shareholders' equity ratio	Net assets per share
      	Millions of yen	Millions of yen	%	Yen
      As of March 31, 2026	2,999,744	752,978	24.5	5,633.05
      As of March 31, 2025	2,379,409	693,276	28.5	5,183.34

      (Reference) Shareholders' equity: As of March 31, 2026: ¥736,112 million As of March 31, 2025: ¥677,250 million

      (Note) In the fiscal year ended March 2026, provisional accounting treatment for business combinations was finalized, and the figures for the fiscal year ended March 2025 reflect the details of this finalization.

   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
   	Millions of yen	Millions of yen	Millions of yen	Millions of yen
   Year ended March 31, 2026	39,674	-35,030	23,244	121,749
   Year ended March 31, 2025	58,889	-79,383	-13,208	88,642

2. Dividend Payments

   (Record date)	Dividend per share					Total dividend amount (annual)	Dividend payout ratio (consolidated)	Dividend to net assets (consolidated)
   	First quarter	Second quarter	Third quarter	Year-end	Annual
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Year ended March 31, 2025	-	50.00	-	50.00	100.00	13,084	38.3	2.0
   Year ended March 31, 2026	-	50.00	-	50.00	100.00	13,083	32.2	1.8
   Year ending March 31, 2027 (Forecast)	-	58.00	-	58.00	116.00		30.9

3. Consolidated Earnings Forecast (From April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes)

Notes:

1. Significant changes of subsidiaries during the period: None New: ― (Company name:)

   Excluded: ― (Company name:)

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

   1. Changes in accounting policies due to amendments to accounting standards: None

   2. Other changes in accounting policies: None

   3. Changes in accounting estimates: None

   4. Restatements: None

3. Numbers of outstanding shares (common stock)

   1. Numbers of outstanding shares at the end of period (including treasury shares):

      Year ended March 31, 2026: 131,489,535 shares

      Year ended March 31, 2025: 131,489,535 shares

   2. Numbers of treasury shares at the end of period:

      Year ended March 31, 2026: 812,094 shares

      Year ended March 31, 2025: 830,439 shares

   3. Average number of outstanding shares during the period:

      Year ended March 31, 2026: 130,671,393 shares

      Year ended March 31, 2025: 130,653,077 shares

      (Reference) Summary of Non-Consolidated Financial Results

      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
         	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
         Year ended March 31, 2026	1,431,229	-11.0	33,934	-	52,403	284.3	22,448	-
         Year ended March 31, 2025	1,608,327	35.4	2,233	-	13,637	-30.5	-10,667	-

         	Profit per share	Diluted net income per share
         	Yen	Yen
         Year ended March 31, 2026	171.80	-
         Year ended March 31, 2025	-81.65	-

      2. Non-Consolidated Financial Position

         	Total assets	Total net assets	Shareholders' equity ratio	Net assets per share
         	Millions of yen	Millions of yen	%	Yen
         As of March 31, 2026	2,412,532	379,033	15.7	2,900.53
         As of March 31, 2025	1,852,792	365,283	19.7	2,795.70

         (Reference) Shareholders' equity: As of March 31, 2026: ¥379,033 million As of March 31, 2025: ¥365,283 million

         • This financial results is not subject to an audit by certified public accountants or audit firms

         • Explanation about the proper use of financial forecasts and other special notes (Cautionary statement regarding forward-looking statements)

The earnings forecasts and other forward-looking statements contained in this report are based on information currently available to Mitsubishi Materials Corporation ("Company" or "Group"), as well as certain assumptions that the Company has judged to be reasonable. They do not constitute a guarantee that the Company will achieve these results. Actual results may vary materially due to a variety of factors.

(Procedure for obtaining supplementary materials for financial results and briefings)

The Company plans to hold a financial results briefing for institutional investors on Wednesday, May 13, 2026. The supplementary materials used at this briefing are disclosed on TDnet and the Company's website simultaneously with the announcement of the financial results.

1. Overview of Business Results 4

   1. Overview of operating results 4

   2. Overview of financial position 6

   3. Basic policy on profit allocation and dividends for the current and next fiscal years 7

2. Basic Policy for the Selection of Accounting Standards 7

3. Consolidated Financial Statements and Notes 8

   1. Consolidated balance sheet 8

   2. Consolidated statements of profit or loss and consolidated statement of comprehensive income 10

      Consolidated statement of profit or loss 10

      Consolidated statement of comprehensive income 11

   3. Consolidated statement of changes in net assets 12

   4. Consolidated statement of cash flows 14

   5. Notes on consolidated financial statements 16

Notes on going concern assumption 16

Notes on business combinations, etc. 16

Notes on consolidated statements of income 16

Notes on segment information, etc. 17

Notes on per share information 21

Notes on significant subsequent events 22

1. Overview of Business Results
   1. Overview of operating results

      1. Summary of business performance

         During the consolidated fiscal year under review, the global economy continued to pick up moderately, although economic recovery in some regions showed signs of stalling amid growing uncertainty due to U.S. policy trends, including tariff policies, and geopolitical developments in the Middle East.

         The Japanese economy continued on a moderate recovery trend, although weakening sentiment in private consumption was observed amid continued price increases.

         In the business environment surrounding the Group, demand for automobile-related products showed a moderate recovery, while demand for semiconductor-related products remained sluggish except for AI-related demand. In addition, while the prices of copper and gold increased compared to the previous fiscal year, concentrate purchase terms (TC/RC) deteriorated. Regarding foreign exchange, the yen appreciated against the U.S. dollar in the first half and depreciated in the second half.

         Under these circumstances, the Group accelerated fundamental structural reforms while shifting its management focus from quantity to quality in order to enhance profitability.

         As a result, consolidated net sales amounted to ¥1,844.053 billion (down 6.0% year-on-year) and consolidated operating profit amounted to ¥60.502 billion (up 63.0% year-on-year).

         Consolidated ordinary profit increased to ¥97.556 billion (up 62.0% year-on-year), mainly due to the recognition of foreign exchange gains, higher equity-method earnings, and increased dividend income from mines.

         Profit attributable to owners of parent increased to ¥40.581 billion (up 19.1% year-on-year), despite the absence of gains on changes in equity recorded in the previous fiscal year and the recognition of impairment losses associated with the fundamental structural reforms.

      2. Overview by segments

         Metals Business

         (Billions of yen)
         	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026	Change (%)
         Net sales	1,433.6	1,235.6	-197.9	(-13.8%)
         Operating profit	23.1	24.2	1.0	(4.8%)
         Ordinary profit	41.1	57.0	15.8	(38.6%)

         In the Metals business, net sales declined year-on-year, mainly due to a decrease in gold production. Operating profit increased, despite a deterioration in concentrate purchase terms (TC/RC), primarily due to higher copper and gold prices. Ordinary profit also rose, mainly due to higher dividend income from mines and an improvement in equity-method earnings.

         Advanced Products Business

         (Billions of yen)
         	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026	Change (%)
         Net sales	510.3	585.8	75.4	(14.8%)
         Operating profit	5.6	21.0	15.3	(272.6%)
         Ordinary profit	3.1	20.0	16.9	(536.6%)

         In the Advanced Products business, performance was supported by an increase in sales volumes in the Copper & Copper Alloy business, together with rising copper prices. In the Electronic Materials & Components business, sales of chemical products and seal products declined, although demand for some semiconductor-related products continued to show a gradual recovery.

         As a result, net sales, operating profit, and ordinary profit all increased year-on-year.

         Metalworking Solutions Business

         (Billions of yen)
         	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026	Change (%)
         Net sales	148.8	234.7	85.9	(57.8%)
         Operating profit	8.8	16.4	7.5	(84.9%)
         Ordinary profit	8.5	14.9	6.4	(75.5%)

         In the Metalworking Solutions business, the Company made H.C. Starck Holding (Germany) GmbH a consolidated subsidiary in December 2024, and as a result, net sales increased year-on-year. In addition, operating profit and ordinary profit rose primarily due to the effects of price increases and increased sales of cemented carbide and tungsten products.

         Renewable Energy Business

         (Billions of yen)
         	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026	Change (%)
         Net sales	8.3	6.2	-2.1	(-25.5%)
         Operating profit	2.3	1.0	-1.3	(-55.9%)
         Ordinary profit	2.6	0.8	-1.8	(-69.3%)

         In the Renewable Energy business, net sales and operating profit declined year-on-year, as operations at the Appi Geothermal Power Plant had been suspended following a lightning strike in April 2025. Ordinary profit also declined, reflecting lower equity-method earnings.

         Other Businesses

         (Billions of yen)
         	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026	Change (%)
         Net sales	157.6	140.0	-17.6	(-11.2%)
         Operating profit	5.4	4.2	-1.1	(-21.9%)
         Ordinary profit	18.5	14.8	-3.6	(-19.9%)

         In the other businesses, net sales and operating profit declined year-on-year on a combined basis. Ordinary profit also declined, reflecting lower equity-method earnings.

      3. Forecast for the next fiscal year (the fiscal year ending March 31, 2027)

      For the consolidated earnings forecast for the fiscal year ending March 31, 2027, please refer to the "Presentation Materials for the Fiscal Year Ended March 31, 2026" released today.

   2. Overview of financial position

      Total assets at the end of the consolidated fiscal year amounted to ¥2,999.7 billion, an increase of ¥620.3 billion from the end of the previous consolidated fiscal year. This was mainly due to increases in leased gold bullion and inventories.

      Total liabilities amounted to ¥2,246.7 billion, an increase of ¥560.6 billion from the end of the previous consolidated fiscal year. This was mainly due to an increase in deposited gold bullion.

      The Group is working to improve fund efficiency by centralizing the management of surplus funds at group companies through the introduction of a cash management system and other measures. As part of this initiative, a global cash management system (notional pooling) has been introduced for certain overseas subsidiaries, and efforts are being made to further enhance fund efficiency on a global basis. At the end of the consolidated fiscal year, deposits of ¥53.4 billion under the notional pooling system are included in cash and cash equivalents, and borrowings of ¥51.9 billion are included in short-term borrowings.

      The status of each category of cash flows during the consolidated fiscal year and the main factors are as follows.

      (Cash flow from operating activities)

      Cash flows from operating activities amounted to an inflow of ¥39.6 billion (a ¥19.2 billion decrease in inflow year-on-year), mainly due to profit before income taxes, the recording of depreciation as a non-cash income/expense item, adjustments for impairment losses, and an increase in inventories.

      (Cash flow from investing activities)

      Cash flows from investing activities resulted in an outflow of ¥35.0 billion (a decrease of ¥44.3 billion year-on-year), mainly due to expenditures for capital investments.

      (Cash flow from financing activities)

      Cash flows from financing activities resulted in an inflow of ¥23.2 billion (compared with an outflow of ¥13.2 billion in the previous fiscal year), mainly due to fund-raising through the issuance of corporate bonds and commercial paper.

      As a result of the above, and after taking into account the effects of foreign exchange translation and other factors, cash and cash equivalents at the end of the consolidated fiscal year amounted to ¥121.7 billion, an increase of ¥33.1 billion from the end of the previous fiscal year.

      Changes in the Group's cash flow-related indicators are as follows:

      	Fiscal year ended March 31, 2022	Fiscal year ended March 31, 2023	Fiscal year ended March 31, 2024	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
      Shareholders' equity ratio (%)	27.5	31.4	30.2	28.5	24.5
      Shareholders' equity ratio on a market value basis (%)	13.2	14.9	17.6	13.4	21.0
      Interest-bearing debt to cash flow ratio	93.0	12.5	12.5	10.4	16.9
      Interest coverage ratio	1.2	7.7	6.6	6.7	4.2

      Shareholders' equity ratio: Shareholders' equity / Total assets

      Shareholders' equity ratio on market value basis: Market capitalization / Total assets Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flow

      Interest coverage ratio: Cash flow / Interest payments

      Notes:

      1. All indicators are calculated using consolidated financial figures.

      2. Market capitalization is calculated by multiplying the year-end share price by the number of shares issued and outstanding at year-end (after deducting treasury shares).

      3. Cash flow is based on cash flows from operating activities in the consolidated statement of cash flows.

      4. Interest -bearing debt covers all liabilities on which interest is paid among the liabilities recorded in the consolidated balance sheet. Interest payments are based on the amount of interest paid shown in the consolidated statement of cash flows.

   3. Basic policy on profit allocation and dividends for the current and next fiscal years

      The Company determines the distribution of surplus, including dividends, by resolution of the Board of Directors in accordance with its Articles of Incorporation. In addition, based on the recognition that returning profits to shareholders is one of the most important management objectives, the Company's policy is to determine profit allocation through a comprehensive assessment of various factors, including earnings for the period, internal reserves, and overall financial condition.

      For profit allocation for fiscal years ended March 2024 through 2026, the Company has adopted a policy of returning profits with a target dividend payout ratio of approximately 30%, and with respect to the acquisition of treasury shares, the Company will consider implementing such acquisitions in a flexible manner, taking into account cash flow conditions, share price levels, and financial discipline, including the net D/E ratio.

      Based on this policy, the dividend for the current fiscal year was determined by a resolution of the Board of Directors at its meeting held on May 13, 2026, taking into consideration earnings for the period and operating cash flow. The year-end dividend was set at ¥50 per share, and together with the interim dividend of ¥50 per share, the total annual dividend amounted to ¥100 per share (unchanged from the previous fiscal year).

      During the period of the Medium-term Management Strategy covering fiscal years ending March 2027 through 2029, the Company will place emphasis on maintaining stable dividends and will pay dividends with a target DOE of 2.5%. The repurchase of treasury shares will continue to be considered in a flexible manner, taking into account cash flow conditions, share price levels, and financial discipline.

      Based on this policy, the Company plans to pay a dividend of ¥116 per share for the next fiscal year (interim dividend of ¥58 and year-end dividend of ¥58).

2. Basic Policy for the Selection of Accounting Standards

   The Group prepares its consolidated financial statements in accordance with Japanese accounting standards for the time being, in order to ensure comparability across periods and among companies.

   The application of IFRS (International Financial Reporting Standards) will be addressed appropriately while taking into account various circumstances.

3. Consolidated Financial Statements and Notes
   1. Consolidated balance sheet

      		(Millions of yen)
      Previous Fiscal Year (As of March 31, 2025)		Current Fiscal Year (As of March 31, 2026)
      Assets
      Current assets
      Cash and deposits	91,605	123,019
      Notes receivable - trade	23,309	25,508
      Accounts receivable - trade	171,045	198,349
      Merchandise and finished goods	151,718	203,710
      Work in process	141,312	184,670
      Raw materials and supplies	190,399	221,644
      Leased gold bullion	463,727	813,829
      Gold bullion in custody	129,505	138,579
      Other	102,212	156,364
      Allowance for doubtful accounts	(530)	(682)
      Total current assets	1,464,306	2,064,993
      Non-current assets
      Property, plant and equipment
      Buildings and structures, net	154,987	159,206
      Machinery, equipment and vehicles, net	157,529	143,976
      Land, net	88,908	88,727
      Construction in progress	22,609	23,703
      Other, net	19,801	18,919
      Total property, plant and equipment, net	443,836	434,533
      Intangible assets
      Goodwill	23,577	19,599
      Other	28,210	27,341
      Total intangible assets	51,788	46,940
      Investments and other assets
      Investment securities	310,772	330,663
      Long-term loans receivable	33,886	35,124
      Retirement benefit asset	25,282	32,980
      Deferred tax assets	24,919	22,317
      Other	24,494	32,301
      Allowance for doubtful accounts	(766)	(770)
      Total investments and other assets	418,590	452,616
      Total non-current assets	914,215	934,090
      Deferred assets
      Opening expenses	887	661
      Total deferred assets	887	661
      Total assets	2,379,409	2,999,744

      		(Millions of yen)
      Previous Fiscal Year (As of March 31, 2025)		Current Fiscal Year (As of March 31, 2026)
      Liabilities
      Current liabilities
      Notes and accounts payable - trade	99,426	123,608
      Short-term borrowings	308,345	281,845
      Commercial papers	-	70,000
      Current portion of bonds payable	-	30,000
      Income taxes payable	4,396	8,710
      Provision for bonuses	11,920	14,930
      Provision for loss on disposal of inventories	772	862
      Deposited gold bullion	773,036	1,239,178
      Other	99,435	102,853
      Total current liabilities	1,297,333	1,871,989
      Non-current liabilities
      Bonds payable	100,000	110,000
      Long-term borrowings	184,753	160,225
      Deferred tax liabilities	14,985	18,972
      Deferred tax liabilities for land revaluation	7,667	7,664
      Provision for loss on business of subsidiaries and affiliates	73	69
      Provision for environmental measures	14,120	13,078
      Provision for directors' retirement benefits	422	429
      Provision for share based compensation plan	456	476
      Retirement benefit liability	41,208	38,791
      Other	25,112	25,069
      Total non-current liabilities	388,798	374,776
      Total liabilities	1,686,132	2,246,766
      Net assets
      Shareholders' equity
      Share capital	119,457	119,457
      Capital surplus	81,745	81,745
      Retained earnings	379,339	406,922
      Treasury shares	(2,828)	(2,788)
      Total shareholders' equity	577,714	605,338
      Accumulated other comprehensive income
      Valuation difference on available-for-sale securities	7,894	12,127
      Deferred gains or losses on hedges	972	3,315
      Revaluation reserve for land	15,670	15,623
      Foreign currency translation adjustment	57,698	74,045
      Remeasurements of defined benefit plans	17,300	25,661
      Total accumulated other comprehensive income	99,535	130,773
      Non-controlling interests	16,026	16,866
      Total net assets	693,276	752,978
      Total liabilities and net assets	2,379,409	2,999,744

   2. Consolidated statement of profit or loss and consolidated statement of comprehensive income Consolidated statement of profit or loss

      		(Millions of yen)
      Previous Fiscal Year (From April 1, 2024 to March 31, 2025)		Current Fiscal Year (From April 1, 2025 to March 31, 2026)
      Net sales	1,962,076	1,844,053
      Cost of sales	1,795,431	1,645,083
      Gross profit	166,645	198,969
      Selling, general and administrative expenses	129,526	138,466
      Operating profit	37,118	60,502
      Non-operating income
      Interest income	4,415	3,694
      Dividend income	20,197	23,491
      Share of profit of entities accounted for using equity method	17,539	21,201
      Foreign exchange gains	-	5,735
      Rental income from non-current assets	3,824	4,200
      Other	2,640	2,714
      Total non-operating income	48,618	61,038
      Non-operating expenses
      Interest expenses	8,771	9,490
      Expense for the maintenance and management of abandoned mines	4,170	4,136
      Rental expenses on non-current assets	2,741	2,728
      Loss on retirement of non-current assets	2,090	1,913
      Foreign exchange losses	2,572	-
      Other	5,154	5,715
      Total non-operating expenses	25,501	23,983
      Ordinary profit	60,235	97,556
      Extraordinary income
      Gain on transfer of business	-	2,400
      Gain on sales of investment securities	3,927	2,253
      Gain on change in equity	7,649	-
      Other	1,084	1,078
      Total extraordinary income	12,661	5,731
      Extraordinary losses
      Impairment loss	13,494	30,335
      Special retirement allowance	444	2,612
      Other business restructuring expenses	-	3,989
      Provision for reserve for environmental measures	4,510	-
      Other	4,483	4,548
      Total extraordinary losses	22,933	41,487
      Profit before income taxes	49,963	61,801
      Income taxes - current	9,392	14,038
      Income taxes - deferred	214	748
      Total income taxes	9,606	14,787
      Profit	40,357	47,013
      Profit attributable to non-controlling interests	6,280	6,432
      Profit attributable to owners of parent	34,076	40,581

      Consolidated statement of comprehensive income

      		(Millions of yen)
      Previous Fiscal Year (From April 1, 2024 to March 31, 2025)		Current Fiscal Year (From April 1, 2025 to March 31, 2026)
      Profit	40,357	47,013
      Other comprehensive income
      Valuation difference on available-for-sale securities	(2,251)	2,106
      Deferred gains or losses on hedges	(1,808)	2,555
      Revaluation reserve for land	(218)	-
      Foreign currency translation adjustment	241	12,437
      Retirement benefit adjustments	6,998	7,695
      Share of other comprehensive income of entities accounted for using equity method	1,739	6,759
      Total other comprehensive income	4,699	31,554
      Comprehensive income	45,056	78,568
      (Breakdown)
      Comprehensive income attributable to owners of parent	36,835	71,865
      Non-controlling interests	8,221	6,702

   3. Consolidated statement of changes in net assets

      Previous fiscal year (From April 1, 2024 to March 31, 2025)

      (Millions of yen)
      	Shareholders' equity
      	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
      Balance as of March 31, 2024	119,457	81,745	358,569	(2,898)	556,875
      Changes during the period
      Cash dividends			(12,692)		(12,692)
      Profit attributable to owners of parent			34,076		34,076
      Reversal of revaluation reserve for land			(10)		(10)
      Change in scope of consolidation			(604)		(604)
      Purchase of treasury shares				(20)	(20)
      Disposal of treasury shares		(0)		90	90
      Net changes in items other than shareholders' equity
      Total changes during the period	-	(0)	20,769	69	20,838
      Balance as of March 31, 2025	119,457	81,745	379,339	(2,828)	577,714

      	Accumulated other comprehensive income						Non-controlling interests	Total net assets
      	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Revaluation reserve for land	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
      Balance as of March 31, 2024	9,751	3,262	16,063	57,567	10,123	96,766	31,981	685,623
      Changes during the period
      Cash dividends								(12,692)
      Profit attributable to owners of parent								34,076
      Reversal of revaluation reserve for land								(10)
      Change in scope of consolidation								(604)
      Purchase of treasury shares								(20)
      Disposal of treasury shares								90
      Net changes in items other than shareholders' equity	(1,857)	(2,289)	(392)	131	7,177	2,768	(15,954)	(13,185)
      Total changes during the period	(1,857)	(2,289)	(392)	131	7,177	2,768	(15,954)	7,653
      Balance as of March 31, 2025	7,894	972	15,670	57,698	17,300	99,535	16,026	693,276

      Current fiscal year (From April 1, 2025 to March 31, 2026)

      (Millions of yen)
      	Shareholders' equity
      	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
      Balance as of March 31, 2025	119,457	81,745	379,339	(2,828)	577,714
      Changes during the period
      Cash dividends			(13,084)		(13,084)
      Profit attributable to owners of parent			40,581		40,581
      Reversal of revaluation reserve for land			46		46
      Changes in scope of consolidation			40		40
      Purchase of treasury shares				(22)	(22)
      Disposal of treasury shares		(0)		62	62
      Net changes in items other than shareholders' equity
      Total changes during the period	-	(0)	27,583	40	27,623
      Balance as of March 31, 2026	119,457	81,745	406,922	(2,788)	605,338

      	Accumulated other comprehensive income						Non-controlling interests	Total net assets
      	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Revaluation reserve for land	Foreign currency translation adjustment	Remeasurements of defined benefit plans	Total accumulated other comprehensiv e income
      Balance as of March 31, 2025	7,894	972	15,670	57,698	17,300	99,535	16,026	693,276
      Changes during the period
      Cash dividends								(13,084)
      Profit attributable to owners of parent								40,581
      Reversal of revaluation reserve for land								46
      Change in scope of consolidation								40
      Purchase of treasury shares								(22)
      Disposal of treasury shares								62
      Net changes in items other than shareholders' equity	4,233	2,343	(46)	16,346	8,361	31,238	839	32,077
      Total changes during the period	4,233	2,343	(46)	16,346	8,361	31,238	839	59,701
      Balance as of March 31, 2026	12,127	3,315	15,623	74,045	25,661	130,773	16,866	752,978

   4. Consolidated statement of cash flows

      		(Millions of yen)
      Previous Fiscal Year (From April 1, 2024 to March 31, 2025)		Current Fiscal Year (From April 1, 2025 to March 31, 2026)
      Cash flows from operating activities
      Profit before income taxes	49,963	61,801
      Depreciation	45,503	47,494
      Amortization of goodwill	1,781	2,392
      Increase (decrease) in allowance for doubtful accounts	(103)	136
      Increase (decrease) in provision for environmental measures	1,997	(1,042)
      Increase (decrease) in provision for retirement benefits and retirement benefits for directors	(3,075)	(3,718)
      Interest and dividend income	(24,613)	(27,185)
      Interest expenses	8,771	9,490
      Foreign exchange losses (gains)	901	319
      Share of loss (profit) of entities accounted for using equity method	(17,539)	(21,201)
      Gain on change in equity	(7,649)	-
      Loss (gain) on sale of non-current assets	(119)	133
      Loss on retirement of non-current assets	2,090	1,913
      Impairment loss	13,494	30,335
      Loss (gain) on sales of investment securities	(3,917)	(718)
      Loss (gain) on valuation of investment securities	1,146	50
      Decrease (increase) in notes and accounts receivable - trade	14,029	(23,265)
      Decrease (increase) in inventories	(47,155)	(117,669)
      Proceeds from sales of gold bullion	149,985	209,927
      Payment for purchase of gold bullion	(129,699)	(150,161)
      Decrease (increase) in other current assets	4,531	(2,200)
      Increase (decrease) in notes and accounts payable - trade	3,709	18,802
      Increase (decrease) in accrued expenses	(2,078)	(4,527)
      Increase (decrease) in other current liabilities	(9,057)	4,306
      Increase (decrease) in other non-current liabilities	1,641	(879)
      Other, net	(4,957)	(5,547)
      Subtotal	49,583	28,985
      Interest and dividend received	26,268	29,517
      Interest paid	(8,773)	(9,490)
      Income taxes (paid) refund	(8,189)	(9,337)
      Net cash provided by (used in) operating activities	58,889	39,674

      		(Millions of yen)
      Previous Fiscal Year (From April 1, 2024 to March 31, 2025)		Current Fiscal Year (From April 1, 2025 to March 31, 2026)
      Cash flows from investing activities
      Payment for purchase of property, plant and equipment	(56,077)	(48,897)
      Proceeds from sales of property, plant and equipment	431	1,055
      Payment for purchase of intangible assets	(4,212)	(2,748)
      Payment for purchase of investment securities	(367)	(8,576)
      Proceeds from sales of investment securities	13,997	3,447
      Proceeds from refunds of investment securities	12,292	15,151
      Payment for purchase of subsidiaries' shares	(4,733)	-
      Purchase of shares of subsidiaries resulting in change in scope of consolidation	(33,646)	(1,245)
      Proceeds from sales of subsidiaries' shares resulting in change in scope of consolidation	1,903	-
      Proceeds from transfer of business	-	2,400
      Payment for loans	(3,407)	(330)
      Proceeds from collection of loans	877	1,214
      Other, net	(6,439)	3,499
      Net cash provided by (used in) investing activities	(79,383)	(35,030)
      Cash flows from financing activities
      Net increase (decrease) in short-term borrowings	41,528	48,823
      Proceeds from long-term borrowings	16,049	10,301
      Repayment of long-term borrowings	(43,390)	(124,594)
      Proceeds from issuance of bonds	20,000	40,000
      Payment for redemption of bonds	(10,000)	-
      Net increase (decrease) in commercial papers	(15,000)	70,000
      Payment for purchase of treasury shares	(20)	(22)
      Cash dividends paid	(12,692)	(13,084)
      Cash dividends paid to non-controlling interests	(7,493)	(6,531)
      Other, net	(2,189)	(1,647)
      Net cash provided by (used in) financing activities	(13,208)	23,244
      Effect of exchange rate changes on cash and cash equivalents	2,280	5,365
      Net increase (decrease) in cash and cash equivalents	(31,421)	33,255
      Cash and cash equivalents at beginning of period	131,143	88,642
      Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation	(11,079)	(148)
      Cash and cash equivalents at end of period	88,642	121,749

   5. Notes on consolidated financial statements Notes on going concern assumption

None.

(Finalization of provisional accounting treatment for business combination)

Regarding the business combination with H.C. Starck Holding (Germany) GmbH conducted on December 17, 2024, provisional accounting treatment had been applied in the previous consolidated fiscal year and was finalized in the current consolidated fiscal year.

As a result of the finalization of the provisional accounting treatment, a significant revision was made to the initial allocation of acquisition cost in the comparative information included in the consolidated financial statements for the current consolidated fiscal year.

As a result, the amount of goodwill of ¥27,319 million, which was calculated provisionally, decreased by ¥9,245 million to ¥18,073 million due to the finalization of the accounting treatment. The decrease in goodwill was due to increases of ¥5,392 million in tangible fixed assets, ¥7,916 million in other intangible fixed assets, and ¥4,063 million in non-current liabilities. At the end of the previous consolidated fiscal year, tangible fixed assets, other intangible fixed assets, and non-current liabilities increased by ¥5,392 million, ¥7,916 million, and ¥4,063 million, respectively, and goodwill decreased by ¥9,245 million.

The amortization period for goodwill is 20 years, while the amortization period for customer-related assets, which are included in other intangible fixed assets other than goodwill, is 20 years, and the amortization period for technology-related assets is 10 years.

1. Impairment losses

   (Method of asset grouping)

   The Group groups its assets mainly by product group or site based on reportable segments. In addition, idle assets are classified by individual asset.

   The impact on segments is described in the relevant sections.

   (Summary of asset groups for which impairment losses were recognized)

   Use	Location	Type	Impairment loss (Millions of yen)
   Metals business assets	Iwaki City, Fukushima Prefecture	Buildings, machinery and equipment, etc.	20,361
   Advanced Products business assets	Pori, Finland, etc.	Machinery and equipment, goodwill, etc.	7,303
   Metalworking Solutions business assets	West Java, Indonesia, etc.	Buildings, machinery and equipment, etc.	1,699
   Renewable Energy business assets	Kazuno City, Akita Prefecture	Construction in progress	629
   Other businesses assets	Sunto-gun, Shizuoka Prefecture	Buildings, etc.	2
   Rental assets	Sannohe-gun, Aomori Prefecture	Buildings, land, etc.	103
   Idle assets	Iwaki City, Fukushima Prefecture, etc.	Machinery and equipment, tools, furniture and fixtures, etc.	236
   Total			30,335

   (Background to the recognition of impairment losses)

   Among business assets, the carrying amount was reduced to the recoverable amount for asset groups whose profitability had declined significantly due to a decline in product market prices, sluggish market conditions, and other factors, or for asset groups for which a decision had been made to terminate the business. In addition, the carrying amount of idle assets whose recoverable amount was below the carrying amount due to a decline in market prices and other factors was reduced to the recoverable amount. The decrease in the carrying amount of the business assets and idle assets was recorded as impairment losses of ¥30,335 million in extraordinary losses.

   ・Breakdown of impairment losses by account

   Buildings ¥4,020 million, Structures ¥875 million, Machinery and equipment ¥17,104 million, Construction in progress ¥2,636 million, Land ¥280 million, Goodwill ¥4,587 million, Software in progress ¥597 million, Other

   ¥234 million

   (Method for calculating recoverable amount)

   The recoverable amount is measured based on net realizable value or value in use. Net realizable value is calculated based on real estate appraisal value for assets whose market value is material, and based on fixed asset tax valuation and other factors for other assets. Value in use is calculated by discounting future cash flows primarily at 10.0%.

   (Valuation of fixed assets recorded by Onahama Smelting and Refining Co., Ltd.)

   Since the commencement of operations at the Onahama Smelter & Refinery, Japan's first joint copper smelter, in 1965, Onahama Smelting and Refining Co., Ltd. has been producing copper cathode using copper concentrates, a primary raw material, as its main feedstock for more than 60 years, while expanding, updating and improving its facilities.

   However, the external environment surrounding the copper smelting business has become increasingly competitive with overseas smelters, and the terms for purchasing copper concentrates from mining companies (TC/RC) have deteriorated significantly, making the future outlook uncertain.

   Amid these circumstances, Onahama Smelting and Refining Co., Ltd. has been striving to secure profitability by implementing cost reduction measures, such as cutting fixed costs by suspending some processes. However, the Company has decided to suspend the processing of copper concentrates and the operation of related smelting facilities at the Onahama Smelter & Refinery by the end of March 2027 as part of its fundamental structural reforms.

   As a result of comparing the total amount of undiscounted future cash flows to be obtained from the asset group with the carrying amount, the undiscounted future cash flows fell below the carrying amount. In measuring impairment losses, the carrying amount was reduced to the recoverable amount, and an impairment loss of

   ¥20,236 million was recorded.

   (Valuation of goodwill recorded by Luvata Oy)

   Luvata Oy adopts International Financial Reporting Standards (IFRS). Regardless of whether there are indications of impairment, groups of cash-generating units including goodwill undergo an impairment test every fiscal year. If the recoverable amount falls below the carrying amount, the carrying amount is reduced to the recoverable amount, and the reduction is recognized as an impairment loss. The recoverable amount is the higher of value in use or fair value less costs of disposal.

   As a result of the impairment test for the fiscal year under review, the recoverable amount fell below the carrying amount, resulting in the recognition of an impairment loss of ¥4,587 million. This was mainly due to the recognition of impairment losses resulting from an increase in the carrying amount, primarily attributable to an increase in working capital due to a rise in copper prices.

2. Other business restructuring expenses

   In line with the decision to suspend the processing of copper concentrates and the operation of related smelting facilities at Onahama Smelting and Refining Co., Ltd. by the end of March 2027, a valuation loss was recorded on supplies held by the company that are not expected to be used in the future.

   Notes on segment information, etc.

   [Segment information]

   1. Overview of reportable segments

      1. Method of determining reportable segments

         The Company's reportable segments are constituent units of the Company for which separate financial statements are available and which are subject to periodic review by the Board of Directors to determine the allocation of management resources and to evaluate business performance.

         The Company has adopted an internal company system, under which internal companies and business units formulate comprehensive domestic and overseas strategies for the products and services they handle and

         conduct business activities.

         Accordingly, the Company is composed of product and service segments based on internal companies and has four reportable segments: the Metals business, the Advanced Products business, the Metalworking Solutions business, and the Renewable Energy business.

      2. Types of products and services in each reportable segment Major products of each business segment are as follows:

         1. Metals business: Non-ferrous metal smelting (copper, gold, silver, lead, tin, palladium, sulfuric acid, etc.), home appliance recycling

         2. Advanced Products business: Copper and copper alloy products, electronic materials

         3. Metalworking Solutions business: Cemented carbide products

         4. Renewable Energy business: Renewable energy

   2. Method of calculating net sales, profit or loss, assets, and other items by reportable segment

      The accounting methods for the reportable business segments are the same as those adopted for the preparation of the consolidated financial statements.

      Profit of reportable segments is based on ordinary profit.

      Inter-segment internal revenues and transfers are based on prevailing market prices.

   3. Information on net sales, profit or loss, assets, and other items by reportable segment

Previous fiscal year (From April 1, 2024 to March 31, 2025)

(Millions of yen)

Notes:

1. ‟Other businesses" include cement-related and engineering-related businesses.

2. Adjustment to segment profit of ¥(13,786) million includes ¥(2,453) million in eliminations of inter-segment transactions and ¥(11,332) million in company-wide expenses not allocated to any reportable segment. Company-wide expenses mainly consist of general and administrative expenses, basic research and development expenses, and financial income and expenses not attributable to reportable segments.

3. Adjustment to segment assets of ¥39,233 million includes inter-segment eliminations of ¥(88,444) million and company-wide assets of ¥127,677 million not allocated to any reportable segment. Company-wide assets mainly consist of assets related to administrative departments and assets related to basic research and development that are not attributable to reportable segments.

4. Segment information for the previous fiscal year has been disclosed based on the amounts after the significant revision of the initial allocation of acquisition cost due to the finalization of provisional accounting treatment as described in "Notes on business combinations, etc."

5. The increase in property, plant and equipment and intangible assets does not include the increase in assets due to business combinations.

6. The adjustment of ¥3,187 million for the increase in property, plant and equipment and intangible assets mainly represents capital expenditures at the DX Promotion Division and the Innovation Center.

7. Segment profit is reconciled with ordinary profit in the consolidated statement of income.

Current fiscal year (From April 1, 2025 to March 31, 2026)

(Millions of yen)

Notes:

1. ‟Other businesses" include cement-related and engineering-related businesses.

2. Adjustment to segment profit of ¥(10,241) million includes eliminations of inter-segment transactions of

   ¥(385) million and company-wide expenses of ¥(9,856) million not allocated to any reportable segment.

   Company-wide expenses mainly consist of general and administrative expenses, basic research and development expenses, and financial income and expenses not attributable to reportable segments.

3. Adjustment to segment assets of ¥84,578 million includes eliminations of inter-segment transactions of

   ¥(100,132) million and company-wide assets of ¥184,711 million not allocated to any reportable segment. Company-wide assets mainly consist of assets related to administrative departments and assets related to basic research and development that are not attributable to reportable segments.

4. The adjustment of ¥3,091 million for the increase in property, plant and equipment and intangible assets mainly represents capital expenditures at the DX Promotion Division and the Innovation Center.

5. Segment profit is reconciled with ordinary profit in the consolidated statement of income.

【Information on impairment losses on fixed assets by reportable segment】 Previous fiscal year (From April 1, 2024 to March 31, 2025)

(Millions of yen)

Note: The adjustment to impairment losses of ¥34 million is mainly due to impairment of common-use assets.

Current fiscal year (April 1, 2025 to March 31, 2026)

(Millions of yen)

Note: The adjustment to impairment losses of ¥185 million is mainly due to impairment of idle assets.

Note:

1. The Company's shares held by the executive remuneration BIP Trust are included in treasury shares to be deducted from the total number of issued shares at the end of the period for the purpose of calculating net

   assets per share. The number of treasury shares at the end of the period was 830,000 shares for the previous fiscal year and 812,000 shares for the current fiscal year, of which the number of the Company's shares held by the executive remuneration BIP Trust was 184,000 shares for the previous fiscal year and 159,000 shares for the current fiscal year.

2. Diluted profit per share is not stated because there are no potential shares.

3. The basis for calculating profit per share is as follows:

   	Previous Fiscal Year (From April 1, 2024 to March 31, 2025)	Current Fiscal Year (From April 1, 2025 to March 31, 2026)
   Profit per share
   Profit attributable to owners of parent (Millions of yen)	34,076	40,581
   Amount not attributable to common shareholders (Millions of yen)	-	-
   Profit attributable to owners of parent related to common shares (Millions of yen)	34,076	40,581
   Average number of shares during the period (Thousand shares)	130,653	130,671

   Note:

   The Company's shares held by the executive remuneration BIP Trust are included in treasury shares to be deducted in the calculation of the average number of shares during the period for the purpose of calculating profit per share. The average number of treasury shares during the period was 836,000 shares for the previous fiscal year and 818,000 shares for the current fiscal year, of which the average number of the Company's shares held by the executive remuneration BIP Trust during the period was 193,000 shares for the previous fiscal year and 168,000 shares for the current fiscal year.

   Notes on significant subsequent events

   (Transition of retirement benefit plan)

   In April 2026, the Company transitioned part of its retirement lump-sum payment plan to a defined

   contribution pension plan and applied the "Accounting Treatment for Transition between Retirement Benefit Plans" (ASBJ Guidance No. 1).

   As a result of this transition, extraordinary income of ¥11,033 million is expected to be recorded in the following consolidated fiscal year.

   (Change in segment classification)

   At a meeting of the Board of Directors held on November 26, 2025, the Company resolved to adopt the Medium-term Management Strategy covering fiscal years ending March 2027 through March 2029.

   Under the Medium-term Management Strategy, the Company reorganized its business as of April 1, 2026 by defining the collection and processing of recycled raw materials through to the manufacture of copper and copper alloy products and tungsten materials as the "Materials Business Area," and positioning the

   manufacture of cemented carbide products and advanced products, which involve further downstream processing, as the "Products Business Area," thereby accelerating global expansion in each area.

   In the Materials Business Area, the Company will promote the expansion of secondary smelting, resource

   circulation loops, and tungsten recycling by integrating related businesses. The Products Business Area will strive to improve profitability by providing high-value-added products and solutions. Through mining investment, the Mineral Resources business will contribute to the stable procurement of copper concentrates

   for use in the Materials Business Area and the establishment of a stable earnings base. The Renewable Energy business will develop an energy infrastructure that combines a variety of power sources, mainly geothermal, hydroelectric, and solar power, to achieve both stable supply and decarbonization.

   Accordingly, the Company has changed its reportable segment classification from the "Metals business," "Advanced Products business," "Metalworking Solutions business," and "Renewable Energy business" to the "Materials Business Area," "Products Business Area (Metalworking Solutions business)," "Products Business Area (Advanced Products business)," "Mineral Resources business," and "Renewable Energy business."

   Information on the amounts of net sales, profit or loss, assets, and other items by reportable segment for the fiscal year under review based on the segment classification after the change is as follows.

   Current fiscal year (From April 1, 2025 to March 31, 2026)

   (Millions of yen)

   	Reportable segments					Other businesses	Total	Adjustments	Amounts in consolidated financial statements
   	Materials Business Area	Products Business Area		Mineral Resources business	Renewable Energy business
   		Metalworking Solutions business	Advanced Products business
   Net sales
   (1) Net sales to external customers	1,375,270	142,875	219,834	-	6,202	99,869	1,844,053	-	1,844,053
   (2) Inter-segment net sales or transfers	51,739	4,394	14,700	-	7	43,583	114,425	(114,425)	-
   Total	1,427,010	147,269	234,534	-	6,210	143,453	1,958,478	(114,425)	1,844,053
   Segment profit	44,849	15,148	5,533	28,670	802	15,057	110,061	(12,504)	97,556
   Segment assets	1,994,926	219,788	222,573	123,907	55,846	279,388	2,896,430	103,314	2,999,744
   Other Items
   Depreciation	19,881	10,608	8,741	392	2,085	1,191	42,900	4,594	47,494
   Amortization of goodwill	926	976	488	-	-	2	2,392	-	2,392
   Interest income	779	613	256	2,305	12	61	4,029	(335)	3,694
   Interest expenses	5,416	795	2,410	770	484	262	10,139	(649)	9,490
   Share of profit of entities accounted for using equity method	3,232	-	2,145	5,302	603	10,467	21,751	(549)	21,201
   Investments in equity-method affiliates	53,422	-	6,520	47,294	5,179	189,780	302,198	(890)	301,307
   Increase in property, plant and equipment and intangible assets	28,010	8,868	9,658	5	3,229	2,119	51,891	3,091	54,982

   Notes:

   1. ‟Other businesses" include cement-related and engineering-related businesses.

   2. Adjustment to segment profit of ¥(12,504) million includes eliminations of inter-segment transactions of

      ¥(2,648) million and company-wide expenses of ¥(9,856) million not allocated to any reportable segment.

      Company-wide expenses mainly consist of general and administrative expenses, basic research and development expenses, and financial income and expenses not attributable to reportable segments.

   3. Adjustment to segment assets of ¥103,314 million includes eliminations of inter-segment transactions of

      ¥(81,396) million and company-wide assets of ¥184,711 million not allocated to any reportable segment. Company-wide assets mainly consist of assets related to administrative departments and assets related to basic research and development that are not attributable to reportable segments.

   4. The adjustment of ¥3,091 million for the increase in property, plant and equipment and intangible assets mainly represents capital expenditures at the DX Promotion Division and the Innovation Center.

   5. Segment profit is reconciled with ordinary profit in the consolidated statement of income.