Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.

Consolidated Financial Results
for the Three Months Ended June 30, 2024
[Japanese GAAP]
July 30, 2024
Company name: Sanyo Special Steel Co., Ltd.
Listing: Tokyo
Securities code: 5481
URL: https://www.sanyo-steel.co.jp/
Representative: MIYAMOTO Katsuhiro
Inquiries: YANAGIMOTO Yutaka
Telephone: +81-79-235-6008
Scheduled date to commence dividend payments: Preparation of supplementary material on financial results: Yes
Holding of financial results briefing: Yes

Representative Director and President
General Manager, Head of Accounting & Finance Department(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2024 (April 1, 2024 to June 30, 2024)(1) Consolidated Operating Results(Percentages indicate year-on-year changes.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Three months ended
June 30, 2024
88,518(11.4)
2,456(55.3)
2,820(53.5)
2,030(52.9)
June 30, 2023
99,863(4.0)
5,500(37.4)
6,070(34.6)
4,308(37.4)(Note) Comprehensive income:Three months ended June 30, 2024:¥
9,542 million [17.5%]
Three months ended June 30, 2023:¥
8,121 million [(29.7) %]Basic earnings
per share
Three months ended
June 30, 2024
June 30, 2023

Diluted earnings pershare
YenYen37.27
79.07-(2) Consolidated Financial Position
Total assets
As ofJune 30, 2024
March 31, 2024
(Reference) Equity:

Net assets

Capital adequacy ratio

Millions of yen

Millions of yen%

408,890398,706

234,010
228,597
232,525 million
226,667 million

56.9
56.9

As of June 30, 2024:
As of March 31, 2024:¥¥

2. Dividends
1stquarter-end

2ndquarter-end

Yen

Yen

Annual dividends
3rdquarter-end

Fiscal year ended March 31, 2024
35.00
Fiscal year ending March 31, 2025
Fiscal year ending March 31, 2025
20.00
(Forecast)(Note) Revision to the forecast for dividends announced most recently:
NoneYear-end

Total

Yen

YenYen-30.00

65.00-50.0070.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025(April 1, 2024 to March 31, 2025)(Percentages indicate year-on-year changes.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners of parent
per share
Millions of yen% Millions of yen% Millions of yen% Millions of yen

Six months ending
165,000 (10.9)
2,600 (64.5)
2,500 (68.0)
September 30, 2024
Full year
345,000(2.5)
12,3008.2
13,0007.3(Note) Revision to the financial results forecast announced most recently:
Yes* Notes:(1) Significant changes in the scope of consolidation during the period:%

Yen

1,200(77.1)

22.02

9,500

4.9

174.36None(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:(3) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to revisions to accounting standards and other regulations:
2) Changes in accounting policies due to other reasons: None
3) Changes in accounting estimates: None
4) Restatement: NoneNoneNone(4) Number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2024:
54,507,307 shares
March 31, 2024:
54,507,307 shares
2) Number of treasury shares at the end of the period:
June 30, 2024:
23,764 shares
March 31, 2024:
23,478 shares
3) Average number of shares outstanding during the period:
Three months ended June 30, 2024:
Three months ended June 30, 2023:

54,483,688 shares
54,485,587 shares* Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public
accountants or an audit firm: None
* Proper use of earnings forecasts, and other special matters
Forecasts and other forward-looking statements are based on judgments made by the Companies in accordance with information
currently available. Please be aware that there are various uncertainties inherent in forecasts, and actual results may differ from theseforecasts.

Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Income taxes refund receivable
Deposits paid to subsidiaries and associates
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Machinery, equipment and vehicles, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Commercial papers
Current portion of bonds payable
Income taxes payable
Provision for bonuses
Provision for environmental measures
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Provision for loss on guarantees
Provision for environmental measures
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities

1

As of June 30, 2024

26,591

24,79259,54162,725

13,381

13,18029,862
54,59534,700
390
4,810
4,996
(435)
228,435

32,20655,13635,416
590
4,632
5,714
(452)
233,943

76,13247,354
123,487

78,726
48,657
127,384

32,954
4,029
36,984
9,799
170,271398,706

33,8894,114
38,003
9,558
174,946
408,890

39,35754,295
10,000
4,440
2,089
4
26,506
136,694

38,73838,84925,991
10,000
2,078
1,057
4
23,326140,046

16,30016,3004440

1
188
10,3986,482
33,415
170,1092
198
11,264
7,026
34,832
174,879

(Millions of yen)
As of March 31, 2024
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

2As of June 30, 2024

53,80048,827
105,724(37)
208,31553,80046,904
106,121(38)206,788

1,915

1,749

(416)
15,251
1,602
18,351
1,930
228,597398,706164
22,411
1,411
25,737
1,485
234,010
408,890

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the three months)(Millions of yen)
For the three months
ended June 30, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Rental income
Power supply and demand adjustment cooperation
fund
Income from supplying data
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Loss on liquidation of subsidiaries and associates
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

3

For the three months
ended June 30, 2024

99,86384,465
15,3979,897
5,500

88,51875,45813,05910,602
2,456

177
96
268
81

176
72
206
72

433

186

68
1,125

219
115
1,050

470
84
555
6,070

577
108
686
2,820

67
3
70

306
9315

85
60
145
5,995
1,201
420
1,621
4,374
66
4,308

155
155
2,981
663
257
921
2,059
28
2,030

Quarterly Consolidated Statements of Comprehensive Income (For the three months)(Millions of yen)
For the three months
ended June 30, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to non-controllinginterests

4

For the three months
ended June 30, 2024
4,374

2,059

189
(749)
4,036
271
3,747
8,121

(165)
581
7,258
(191)
7,483
9,542

8,002

9,415

119

126

Notes to Quarterly Consolidated Financial Statements(Segment Information)Information about reportable segment profit or loss
Segment information for the three months ended June 30, 2023
(Millions of yen)
Reportable segments
Adjustments

Quarterly
Consolidated
total

99,863－99,863

2,342(2,342)－

251

102,206(2,342)

99,863

(4)

5,480

19

5,500

Steel
Products

Metal
Powders

Formed andFabricatedMaterials

Outside customers

93,986

1,398

4,456

99,84022

Intersegment transactions

2,113

－

－

2,113

229

Total

96,099

1,398

4,456

101,954

5,489

253

(257)

5,484

Total

Other

Total

Net sales

Segment profit (loss)

1. The "Other" category is the information service segment not included in reportable segments.
2. Segment profit (loss) adjustments are intersegment eliminations.
3. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statements of income.
Segment information for the three months ended June 30, 2024
(Millions of yen)
Reportable segments
SteelProducts

Metal
Powders

Formed andFabricatedMaterials

82,750

1,371

4,367

Total

Other

Adjustments

QuarterlyConsolidated
total

88,518－88,518Total

Net sales
Outside customers

88,48928

Intersegment transactions

1,624－－

1,624316

1,941(1,941)－Total

84,375

1,371

4,367

90,114345

90,459(1,941)

88,5182,546

259(362)2,443

12,44511

2,456

Segment profit (loss)

1. The "Other" category is the information service segment not included in reportable segments.
2. Segment profit (loss) adjustments are intersegment eliminations.
3. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statements of income.

(Notes to Quarterly Consolidated Statements of Cash Flows)
Quarterly consolidated statements of cash flows have not been prepared for the first quarter of the current fiscal year.
Depreciation (including amortization relates to intangible assets excluding goodwill) and amortization of goodwill for the first quarter ofthe current fiscal year are as follows.

3,467(Millions of yen)
For the three months ended
June 30, 2024
3,562

778

871

For the three months ended
June 30, 2023
Depreciation
Amortization of goodwill

5Reference

Consolidated Financial Results
for the Three Months Ended June 30, 2024
1. Financial results and forecast(Thousand tons, Billions of yen, %)FY2024/1Q

FY2023/1Q(Result)(Result)

ChangeForecast (*)%

FY2024/1H

FY202488.5

99.9(11.3)(11.4)

165.0

345.0

(Sanyo)(OVAKO)(SSMI)

39.1
41.3
5.6

48.0
44.3
5.5

(8.9)
(2.9)
0.1

(18.6)
(6.6)
2.1

80.0
69.5
12.0

163.0
148.0
26.0

Operating profit

2.5

5.5

(3.0)

(55.3)

2.6

12.3

Ordinary profit

2.8

6.1

(3.3)

(53.5)

2.5

13.0

ROS

3.2

6.1

(2.9)

1.4
2.8
0.2

2.0
5.2
0.2

(0.6)
(2.4)
0.0

(0.9)

(0.8)

Profit attributable toowners of parent

2.0

Sales volume(Sanyo)(OVAKO)(SSMI)Net sales

1.5

3.8

(30.7)(45.6)
13.4

4.7
2.3
0.4

10.5
6.5
1.0

(0.1)

－(1.7)

(3.4)

4.3

(2.3)

(52.9)

1.2

9.5

352

392

(40)

(10.1)

671

1,438

175
150
27

213
152
27

(38)
(2)
0(18.0)
(1.2)
1.1

362
253
56

767
549
122

Capital expenditure

3.6

4.3

(0.6)

(14.4)

17.0

Depreciation

3.6

3.5

0.1

2.8

15.0

(Sanyo)(OVAKO)(SSMI)(Amortization ofgoodwill)(*) Major assumptions after July 2024：Scrap iron 52,000 yen/t (H2 market price in Himeji area)
Crude oil (Dubai) 90$/BL , Exchange rate 151.5 yen/US$, 163.0 yen/€(Reference) Net sales and profit (Quartly)(Billions of yen, %)FY2024FY2023
1Q

2Q

4Q

3Q

Net sales

99.9

85.4

83.7

Operating profit

5.5

1.8

Ordinary profit

6.1

1.7

ROS

6.1

Profit attributable toowners of parent

4.3

Full year

1Q

84.8

353.8

88.5

1.5

2.5

11.4

2.5

1.3

3.0

12.1

2.8

2.0

1.5

3.6

3.4

3.2

0.9

1.1

2.7

9.1

2.0

2. Ordinary profit variance analysis (FY2023/1Q → FY2024/1Q)(Billions of yen)
Reason for increase

Reason for decrease

1. Raw material and fuel prices

1.5 1. Sales volume

1.4

2. Fixed cost

0.2 2. Non-operating income or expenses (Sanyo)

0.5

Total (A)

3. Sales price and product mix
4. Other Materials, outsourcing,logistic costs, etc.
5. OVAKO's ordinary profit

0.2

6. Consolidated affiliated companies, etc.

0.3

1.7

6

0.2
2.4

Total (B)

5.0

Change (A) － (B)(3.3)