Financial Results (Second Quarter of FY2025)

Member of the Financial Accounting Standards Foundation

August 7, 2025

Company name: Toyo Tanso Co., Ltd.

Listing: Tokyo Stock Exchange

Securities code: 5310

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

Representative: Naotaka Kondo, Representative Director, Chairman & President, CEO Inquiries: Masaki Kuno, General Manager, Finance and Accounting Department Telephone: 81-50-3097-4950 (from overseas)

Scheduled date to file semi-annual securities report: August 8, 2025 Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for securities analysts and institutional investors)

1. Consolidated financial results for the six months ended June 30, 2025

   (From January 1, 2025 to June 30, 2025)

   1. Consolidated operating results (cumulative) (Millions of yen, rounded down)

      (Percentages indicate changes from the same period in the previous fiscal year.)

      Net sales Operating profit Ordinary profit Profit attributable to

      owners of parent

      % % % %

      Six months ended

      22,980 (12.6) 3,840 (33.9) 3,789 (45.8) 2,681 (48.0)

      June 30, 2025

      Six months ended June 30, 2024

      Note: Comprehensive income:

      26,284 10.8 5,808 26.0 6,994 31.0 5,156 24.9

      Six months ended June 30, 2025 1,311 million yen (-82.6%)

      Six months ended June 30, 2024 7,519 million yen (39.2%)

      Six months ended June 30, 2025

      Six months ended June 30, 2024

      Basic earnings per share Diluted earnings per share

      yen yen

      127.85 -

      245.89 -

   2. Consolidated financial position

      (Millions of yen, rounded down)

      Total assets Net assets Equity ratio

      %

      As of June 30, 2025 109,622 92,473 84.3

      As of December 31, 2024 113,190 94,205 83.2

      Reference: Equity

      June 30, 2025 92,415 million yen

      December 31, 2024 94,147 million yen

2. Cash dividends

   Year ending December 31, 2025 (Actual)	- 0.00
   Year ending December 31, 2025 (Forecast)		-	145.00	145.00

   Year ended December 31, 2024

   Dividends per share (yen)

   First quarter-end Second quarter-end Third quarter-end Year-end Total (Full year)

   - 0.00 - 145.00 145.00

   Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated results forecast for the fiscal year ending December 31, 2025

(From January 1, 2025 to December 31, 2025)

(Millions of yen, rounded down) (Percentages indicate year-on-year changes.)

Net sales Operating income Ordinary income

Profit attributable to owners of parent

Profit attributable to owners of parent

per share

Fiscal year ending December 31, 2025

Note: Revisions to the results forecasts most recently announced: Yes

• Notes

  1. Significant changes in the scope of consolidation during the period: None Newly included: (name of company(ies))

     Excluded: (name of company(ies))

  2. Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: Yes

     Note: For details, please refer to "Adoption of specific accounting methods for the preparation of semi-annual consolidated financial statements" on page 9 of the Attached Documents.

  3. Changes in accounting policies, changes in accounting estimates, and restatements

     1. Changes in accounting policies due to revisions of accounting standards and other regulations: Yes

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

     3. Changes in accounting estimates: None

     4. Restatement: None

        Note: For details, please refer to "Notes on changes in accounting policies" on page 9 of the Attached Documents.

  4. Number of issued shares (common shares)

     1. Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2025 20,992,588 shares

        As of December 31, 2024 20,992,588 shares

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

        As of June 30, 2025 20,372 shares

        As of December 31, 2024 20,277 shares

     3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

        Six months ended June 30, 2025 20,972,296 shares

        Six months ended June 30, 2024 20,972,417 shares

• Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm.
• Proper use of earnings forecasts, and other special matters

(We urge you to be cautious in relying on forward-looking statements.)

Forward-looking statements such as the earnings forecasts in this material are based on currently available information and certain assumptions deemed rational, and are not intended as a guarantee that these forecasts will be achieved. Accordingly, actual results may differ significantly from these forecasts due to various factors. For more information on the preconditions of the forecasts and on precautionary notes concerning the usage of these forecasts, please refer to "Explanation of information regarding consolidated earnings forecasts and other projections" on page 3 of the Attached Documents.

(How to acquire supplementary materials for financial summaries and information disclosed at our financial results briefing.)

We are scheduled to hold a financial results briefing for securities analysts and institutional investors on August 21, 2025. The materials distributed at the briefing are scheduled to be disclosed on TDnet and our website on that same day.

• Attached Documents

1. Qualitative Information Regarding Consolidated Results for the Six Months under Review 2

   1. Explanation regarding business results 2

   2. Explanation regarding financial position 2

   3. Explanation of information regarding consolidated earnings forecasts and other projections 3
2. Semi-annual Consolidated Financial Statements and Important Notes 4
   1. Semi-annual consolidated balance sheets 4
   2. Semi-annual consolidated statement of income and semi-annual consolidated statement of comprehensive income 6 (Semi-annual consolidated statements of income) 6 (Semi-annual consolidated statement of comprehensive income) 7
   3. Semi-annual consolidated statements of cash flows 8
   4. Notes on semi-annual consolidated financial statements 9 (Notes on changes in accounting policies) 9 (Adoption of specific accounting methods for the preparation of semi-annual consolidated financial statements) 9 (Notes on segment information, etc.) 10 (Notes if the amount of shareholders' equity has changed significantly) 11 (Notes regarding the premise of a going concern) 11
3. Supplementary Information 12
   1. Orders and sales by product category 12
   2. Overview 13

1

1. ‌Explanation regarding business results

   During the first half of the consolidated fiscal year under review, the recovery in global business conditions moderated, with little indication of progress in some regions and an increasingly uncertain outlook due to the United States' trade policy.

   Looking at the business environment surrounding the Group, in electronics applications, demand for silicon semiconductor and SiC semiconductor applications was low due to a market correction. Demand softened in mobility applications and general industries due to sluggish operations in the automotive industry and weaker corporate capital investment.

   In this environment, the Group worked to ensure that it captured demand by responding to changes in the external environment, while also controlling its balance of products and applications. In addition, the Group strived to provide high-value-added solutions integrating manufacturing, sales, and development to address increasingly sophisticated customer needs and achieve the management targets of the Medium-term Management Plan. This included strengthening and developing high-value-added products that can keep pace with technological innovations and improving cost competitiveness through increased productivity.

   As a result, in the first half of the consolidated fiscal year under review, net sales were 22,980 million yen (down 12.6% year on year). In terms of profits, operating profit was 3,840 million yen (down 33.9% year on year), ordinary profit was 3,789 million yen (down 45.8% year on year), and profit attributable to owners of parent of 2,681 million yen (down 48.0% year on year).

   The overall performance of each business segment was as follows. (Please refer to "3. Supplementary Information" for an overview of each product category.)

   Japan

   Sales of products for metallurgical applications, mainly for industrial furnaces, as well as bearings and other carbon products for mechanical applications, were firm, but sales of semiconductor applications decreased substantially amid a market correction. As a result, in Japan, net sales were 12,059 million yen (down 14.7% year on year) and operating profit was 2,800 million yen (down 49.2% year on year).

   United States

   Sales of products for semiconductor applications were solid, but metallurgical applications including those for continuous casting and industrial furnaces were weak. As a result, in the United States, net sales were 2,070 million yen (down 18.0% year on year) and operating profit was 36 million yen (down 83.6% year on year).

   Europe

   Sales of mainstay metallurgical applications and carbon brush products declined. As a result, in Europe, net sales were 2,614 million yen (down 5.4% year on year), and operating profit was 101 million yen (loss of 48 million yen in the previous year).

   Asia

   Although sales for metallurgical applications such as industrial furnaces remained on a similar level to the same period of the previous fiscal year, sales of carbon brush products and products for semiconductor applications such as solar cells were weak. As a result, in Asia, net sales were 6,235 million yen (down 9.0% year on year) and operating profit was 289 million yen (down 52.1% year on year).

2. ‌Explanation regarding financial position

As of June 30, 2025, total assets decreased by 3,568 million yen from the end of the previous consolidated fiscal year. This was primarily because, although inventories increased by 2,029 million yen and property, plant and equipment increased by 2,584 million yen, there were decreases of 2,833 million yen in cash and deposits, 2,575 million yen in notes and accounts receivable - trade, and 2,499 million yen in securities.

Total liabilities decreased by 1,836 million yen from the end of the previous consolidated fiscal year. This was primarily because, although short-term borrowings increased by 500 million yen, current portion of longterm borrowings increased by 640 million yen, and long-term borrowings increased by 2,471 million yen, there were decreases of 1,237 million yen in accounts payable - other, 1,397 million yen in income taxes payable, 446 million yen in provision for bonuses, and 1,800 million yen in other current liabilities, primarily electronically recorded obligations - non-operating.

2