Securities Report - 112th Fiscal Period (2025/04/01 - 2026/03/31)

Tokyo Steel Corporation Securities Report - 112th Fiscal Period (2025/04/01 - 2026/03/31)

Tokyo Steel Corporation has submitted its securities report for the 112th fiscal period (April 1, 2025 to March 31, 2026) to the Kanto Local Finance Bureau in accordance with the Financial Instruments and Exchange Act. This report aims to provide investors and market participants with accurate and transparent information regarding the company's financial performance, financial position, and management policies.

For the current fiscal period, performance outlook has been carefully formulated considering trends in domestic and international steel demand, fluctuations in raw material prices, and foreign exchange rate movements. In particular, to contribute to the realization of a decarbonized society, the company is accelerating the development of hydrogen-based reduction steelmaking technology and increasing the adoption of renewable energy. Additionally, the advancement of smart factories is enhancing production efficiency and ensuring consistent product quality.

Regarding the business environment, infrastructure investments in Asian countries and the recovery of the North American automotive industry are supporting demand for the company's products. On the other hand, the slowdown in China's real estate market and the expansion of protectionist trade policies remain sources of uncertainty for future performance.

In terms of financial position, the company maintains a stable equity ratio and ensures financial soundness through prudent management of interest-bearing debt. Going forward, it aims to balance stable dividend payouts as part of its shareholder return policy with strategic capital investments.

Key risk factors include rising energy prices, supply chain disruptions, and increasingly stringent climate change regulations. The company is strengthening its risk management systems to address these challenges. Talent acquisition and development, as well as cybersecurity measures, are also recognized as critical priorities.

The company's outlook for the fiscal year ending March 2026 forecasts a 3.5% year-on-year increase in consolidated net sales and an improvement of 0.8 percentage points in operating profit margin. To maintain global competitiveness, Tokyo Steel will continue its R&D investments and increase the proportion of high-value-added products.

This report is also available on the company's official website under the 'Investor Relations' section. The company remains committed to sustainable growth and enhancing shareholder value.