Financial Results Presentation Materials for the Fiscal Year Ending March 2026 | AICHI STEEL CORPORATION (5482) timely disclosure

Worth reading

78Important

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Improvement

Direction inferred from the company’s description.

Scale

¥100 million (year-on-year increase in operating income)

Wording

Avoiding a definitive answer

How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 202614 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥3,043 100 million+2.0%

Operating profit¥173 100 million+45.0%

Net income¥112 100 million+44.0%

Operating profit margin5.7 %

Full-year earnings forecast

Fiscal Period CoveredFiscal year ending March 2027

Revenue

¥3,100 100 million

Operating profit

¥175 100 million

Profit for the period attributable to owners of the parent

¥113 100 million

Sales volume

1,009 thousand tonnes

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Above plan (operating profit for the fiscal year ended March 2026 exceeded the previously announced figure by ¥2.3 billion)

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Sales volume+¥400 million
Selling Prices-¥5.6 billion
Purchased-material prices+¥6.2 billion
Factory cost reductions+¥1.8 billion
Inventory and other factors+¥0.0 billion
Increase in operating profit at consolidated subsidiaries+¥2.5 billion
Inventory effects and expenses (including labor costs)-¥1.3 billion
Other+¥100 million
Foreign Exchange Effects+¥400 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Sales volume (standalone)1,009 thousand tonnes
Iron scrap price, H242.2 Yen/kg
Foreign exchange rate (USD)¥155
Purchased slabs, energy and ferroalloysAdvancers

New initiatives

Consideration of a new steelmaking line (investment of ¥45 billion, scheduled to commence operations in 2032)
Additional investment in VSSL and conversion into an equity-method affiliate
Decision to conclude a forging technology support agreement with VSSL
Target of cost savings of at least ¥3 billion by FY2030 through logistics reform
Transition to a company with an Audit and Supervisory Committee, subject to shareholder approval

Key KPIsA metric the company considers important as a management benchmark.

ROE4.8 %
Year on year against the same period last year+1.6 percentage points
Sales volume (standalone)980 thousand tonnes
Year on year against the same period last year+2%
Lost-time accidents4 Engagements
Human rights due diligence implementation rate82 %
CO2 emissions-33 % vs. FY2013
By-product recycling rate98 %

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Sales volume (standalone)980 thousand tonnes
Iron scrap price, H242.2 Yen/kg
Lead Frames4.2 Million sets/month

Segment results

Steel Company
Revenue¥1,055 100 million (YoY -1.1%)
Operating profit¥81 100 million (YoY +52.8%)
Stainless Steel Company
Revenue¥388 100 million (YoY -11.8%)
Operating profit¥4 100 million (YoY -82.6%)
Forging Company
Revenue¥1,348 100 million (YoY +7.4%)
Operating profit¥66 100 million (YoY +175.0%)
Smart Company
Revenue¥221 100 million (YoY +7.8%)
Operating profit¥13 100 million (YoY +62.5%)
Other
Revenue¥29 100 million (YoY +26.1%)
Operating profit¥7 100 million (YoY -30.0%)

Medium-term management plan targets

Fiscal yearFiscal 2026
Revenue
¥3,400 100 million
Operating profit
¥150 100 million
ROE
4% or higher
Fiscal yearFY2030
Revenue
¥4,000 100 million
Operating profit
¥280 100 million
ROE
8% or higher

Financial targets

ROE
Target value4% or higher (FY2026), 8% or higher (FY2030)
Actual value4.8%
Equity ratio
Target value50–55% (FY2026), approximately 50% (FY2030)
Actual value59%

Market Size / Share

Automobile production in India652 10,000 vehicles 2025
VSSL steel sales volume158 Index FY2019 actual = 100

Capital expenditures

¥16,928 million

Annual Dividend

Fiscal year ending March 2026

Annual¥145 per share

Interim¥69 per share

End of period¥76 per share

Fiscal year ending March 2027

Annual¥150 per share

Interim¥75 per share

End of period¥75 per share

Payout ratio

Fiscal year ending March 202685 %

Fiscal year ending March 202785 %

PolicyDividend payout ratio of 40% or higher

Acquisition of treasury shares

¥262 100 million

PeriodFY2025

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Fiscal year ending March 2026
Net Sales	¥3,043 100 million (YoY +2.0%)
Operating profit	¥173 100 million (YoY +45.0%)
Net income	¥112 100 million (YoY +44.0%)
Operating profit margin	5.7 %
Full-year earnings forecast	Fiscal Period Covered Fiscal year ending March 2027 / Revenue ¥3,100 100 million / Operating profit ¥175 100 million / Profit for the period attributable to owners of the parent ¥113 100 million / Sales volume 1,009 thousand tonnes
Self-assessment against the plan	Above plan (operating profit for the fiscal year ended March 2026 exceeded the previously announced figure by ¥2.3 billion)
Segment results	Segment Steel Company / Revenue ¥1,055 100 million (YoY -1.1%) / Operating profit ¥81 100 million (YoY +52.8%), Segment Stainless Steel Company / Revenue ¥388 100 million (YoY -11.8%) / Operating profit ¥4 100 million (YoY -82.6%), Segment Forging Company / Revenue ¥1,348 100 million (YoY +7.4%) / Operating profit ¥66 100 million (YoY +175.0%), Segment Smart Company / Revenue ¥221 100 million (YoY +7.8%) / Operating profit ¥13 100 million (YoY +62.5%), Segment Other / Revenue ¥29 100 million (YoY +26.1%) / Operating profit ¥7 100 million (YoY -30.0%)
Breakdown of Factors Affecting the Change	Factors Sales volume / Amount +¥400 million, Factors Selling Prices / Amount -¥5.6 billion, Factors Purchased-material prices / Amount +¥6.2 billion, Factors Factory cost reductions / Amount +¥1.8 billion, Factors Inventory and other factors / Amount +¥0.0 billion, Factors Increase in operating profit at consolidated subsidiaries / Amount +¥2.5 billion, Factors Inventory effects and expenses (including labor costs) / Amount -¥1.3 billion, Factors Other / Amount +¥100 million, Factors Foreign Exchange Effects / Amount +¥400 million
Key KPIs	Indicator name ROE / Value 4.8 % / Year on year against the same period last year +1.6 percentage points, Indicator name Sales volume (standalone) / Value 980 thousand tonnes / Year on year against the same period last year +2%, Indicator name Lost-time accidents / Value 4 Engagements / Year on year against the same period last year Not disclosed, Indicator name Human rights due diligence implementation rate / Value 82 % / Year on year against the same period last year Not disclosed, Indicator name CO2 emissions / Value -33 % vs. FY2013 / Year on year against the same period last year Not disclosed, Indicator name By-product recycling rate / Value 98 % / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Indicator name Sales volume (standalone) / Value 980 thousand tonnes, Indicator name Iron scrap price, H2 / Value 42.2 Yen/kg, Indicator name Lead Frames / Value 4.2 Million sets/month
Assumptions Underlying the Business Outlook	Item Sales volume (standalone) / Value 1,009 thousand tonnes, Item Iron scrap price, H2 / Value 42.2 Yen/kg, Item Foreign exchange rate (USD) / Value ¥155, Item Purchased slabs, energy and ferroalloys / Value Advancers
Medium-term management plan targets	Fiscal year Fiscal 2026 / Revenue ¥3,400 100 million / Operating profit ¥150 100 million / ROE 4% or higher, Fiscal year FY2030 / Revenue ¥4,000 100 million / Operating profit ¥280 100 million / ROE 8% or higher
Financial targets	Indicator name ROE / Target value 4% or higher (FY2026), 8% or higher (FY2030) / Actual value 4.8%, Indicator name Equity ratio / Target value 50–55% (FY2026), approximately 50% (FY2030) / Actual value 59%
Annual Dividend	Fiscal year ending March 2026 Annual ¥145 per share / Interim ¥69 per share / End of period ¥76 per share / Fiscal year ending March 2027 Annual ¥150 per share / Interim ¥75 per share / End of period ¥75 per share
Payout ratio	Fiscal year ending March 2026 85 % / Fiscal year ending March 2027 85 % / Policy Dividend payout ratio of 40% or higher
Acquisition of treasury shares	Amount ¥262 100 million / Period FY2025
Capital expenditures	¥16,928 million
Market Size / Share	Item Automobile production in India / Value 652 10,000 vehicles (2025), Item VSSL steel sales volume / Value 158 Index (FY2019 actual = 100)
New initiatives	Consideration of a new steelmaking line (investment of ¥45 billion, scheduled to commence operations in 2032), Additional investment in VSSL and conversion into an equity-method affiliate, Decision to conclude a forging technology support agreement with VSSL, Target of cost savings of at least ¥3 billion by FY2030 through logistics reform, Transition to a company with an Audit and Supervisory Committee, subject to shareholder approval

Items this document does not state (10)

Ordinary incomeGross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

For the fiscal year ended March 2026, lower purchased-material prices, reductions in factory costs and higher profits at subsidiaries contributed to the increase in operating profit. For the fiscal year ending March 2027, the company expects increases in purchased-material prices to be offset by higher selling prices, increased sales volumes and cost reductions.

How to read this page

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