UACJ Corporation (5741) Q1 2027 Earnings Call Transcript

UACJ Corporation Q1 Financial Results Briefing for the Fiscal Year Ending March 2027 August 6, 2026

Event Summary [Company Name]

UACJ Corporation

[Company ID]

5741-QCODE

[Event Language]

JPN

[Event Type]

Earnings Announcement

[Event Name]

Q1 Financial Results Briefing for the Fiscal Year Ending March 2027

[Fiscal Period]

FY2026 Q1

[Date]

August 6, 2026

[Number of Pages]

27

[Time]

15:30 – 16:31 (Total: 61 minutes, Presentation: 27 minutes, Q&A: 34 minutes)

[Venue]

Webcast

[Venue Size] [Participants]

95

[Number of Speakers]

6 Shinji Tanaka Joji Kumamoto Kozo Okada Keizo Hashimoto Kaoru Ueda Motoyasu Sudo

[Analyst Names]*

Atsushi Yamaguchi Harunobu Goroh Yuji Matsumoto Yu Shirakawa

Representative Director, President Director, Senior Managing Executive Officer Director, Executive Officer Executive Vice President Executive Officer General Manager, Investor Relations & Public Relation Department SMBC Nikko Securities Inc. UBS Securities Japan Co., Ltd. Nomura Securities Co., Ltd. Morgan Stanley MUFG Securities Co., Ltd.

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*Analysts that SCRIPTS Asia was able to identify from the audio who spoke during Q&A or whose questions were read by moderator/company representatives.

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Presentation Sudo: Thank you very much for taking time out of your busy schedule today to participate in the financial results briefing for Q1 of FY2026 of UACJ Corporation. This briefing will be conducted using the explanatory materials available on the website of UACJ Corporation. If you do not have the materials at hand, please visit our website. Although this presentation may provide information that includes forward-looking statements, such information is only our current forecast. Please note that actual results may differ significantly from these forward-looking statements due to a variety of factors. As we begin the information session, we have a request for all participants. To prevent feedback and other issues, please mute your microphone until instructed otherwise. In addition, to ensure the question-andanswer session runs smoothly, we ask for your cooperation in changing your display name on Zoom to a combination of your company name and your first and last name. I would now like to introduce today's attendees Shinji Tanaka, Representative Director, President. Tanaka: This is Tanaka. Thank you. Sudo: Joji Kumamoto, Director, Senior Managing Executive Officer. Kumamoto: This is Kumamoto. Thank you. Sudo: Kozo Okada, Director, Executive Officer. Okada: This is Okada. Thank you. Sudo: Keizo Hashimoto, Executive Vice President. Hashimoto: This is Hashimoto. Thank you. Sudo: Kaoru Ueda, Executive Officer. Ueda: This is Ueda. Thank you. Sudo: I am Sudo, General Manager, Investor Relations & Public Relation Department, and I will be serving as the moderator today. Thank you. Okada, Chief Executive, Finance and Accounting Division Director, will now explain the results for Q1 of FY2026, which were announced today. Please refer to the presentation materials during the session. Mr. Okada, please go ahead.

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Okada: This is Okada. I will now explain the financial results of Q1 of FY2026. The page numbers are listed in the lower right corner, so I will proceed by reading them aloud as I go. The key points of today's presentation are summarized on page two. I will focus primarily on points one to three in order to explain the financial results.

First, on page three is an overview of the financial results for Q1 of FY2026. We responded effectively to strong demand, and the operation of our recycling facilities contributed significantly to our profit growth. As shown in the P&L in the lower right corner, the sales volume was 342,000

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tons, representing an increase of 8,000 tons compared to the same quarter of the previous year. According to these figures, the revenue totaled JPY377.4 billion, representing an increase of JPY115.4 billion. Our business profit, which we use as a key performance indicator, came in at JPY25.7 billion, representing an increase of JPY17.8 billion. As for the operating profit, it came in at JPY53.8 billion, representing an increase of JPY45.3 billion. And finally, the net profit came in at JPY35.9 billion, representing an increase of JPY34.6 billion. All of these results show that we ended the quarter with a very strong performance, compared to Q1 of last year. As for the overview, it is listed on the left. First—as I have explained previously—the global demand for aluminum is growing steadily. Additionally, in the domestic market, sales of thick plates for semiconductor manufacturing equipment have remained very strong since around February of this year—and while we have been implementing price adjustments since last fiscal year, the positive effects of those adjustments are clearly continuing. In addition to the, profits have grown further driven by both the US aluminum market conditions and an increase in recycled raw materials’ processing capacity. However, due to the situation in the Middle East, prices for raw materials and secondary materials have also been rising gradually since about the middle of Q1.

The page four presents the full-year outlook for FY2026. You can see that the PL is posted again on the right side. We had previously announced our full-year forecast in May, which is listed at the center. I would like to explain the key differences between that forecast and today’s final forecast. Sales volume is expected to be 1,375,000 tons, representing an increase of 10,000 tons, compared to the forecast we had in May. Revenue is projected to be JPY1.4 trillion, representing an increase of JPY100 billion. Business profit is projected to be JPY86 billion, representing an increase of JPY21 billion. Meanwhile, the net income is projected to be JPY42 billion, which represents an increase of JPY14 billion.

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The key point is listed on the left, which means that the demand for aluminum will continue to grow. In addition, in Japan, the demand for thick plates used in semiconductor equipment—as well as for the IT and data center-related applications—is expected to grow. We also plan to increase the business profit and net profit by expanding our processing capacity for recycled materials, capturing demand, and implementing price adjustments. Regarding the impact of the latest developments in the Middle East—as I will show you later in the waterfall chart—since the situation was quite uncertain as of May, we estimated JPY15 billion. Although we have not included this in the material—as of May—we assumed that the situation would be resolved by around December. This time, we expect this impact to continue throughout this fiscal year until March, but as a risk, we estimated JPY12 billion. Thus, it is an upward revision of JPY3 billion. In light of this profit and loss outlook, we plan to pay an annual dividend of JPY70, which represents a JPY15increase compared to the previous year. This was the summary of the financial results.

Next, on page six, you will find our Q1 results and full-year outlook. I would like to begin by explaining the key points regarding the business environment. From left to right: Japan on the left, North America in the center, and Southeast Asia and other regions on the right. We have summarized the key points regarding demand trends, sales and profits— as well as the impact of the Middle East situation and, finally, US tariffs. First, regarding Japan, we expect the demand for can stocks to remain flat or perhaps see a slight decline. In addition to that, demands for semiconductor manufacturing equipment have rebounded significantly, so the outlook is looking very positive. Furthermore, with regard to the IT and data center, the outlook we are seeing is for the demand to continue expanding over the long term. As for the aerospace and defense-related, the outlook for this is that the demand will also continue to grow over the long term against the backdrop of geopolitical risks.

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As for sales and profits—in terms of demand—the volume of can stocks exported from Japan to Europe is expected to increase, while the increase in thick plates for semiconductor led to a significant improvement in our product mix. We expect the effects of the price revisions implemented starting FY2025 to continue to be felt this fiscal year. Next, regarding the impact of the Middle East—prices for raw materials, secondary materials, energy, and other items have begun to rise. We are currently proceeding with a price adjustment to reflect this increase, which is effective for shipments starting in July of FY2026. Although there are some impacts on the procurement of certain secondary materials, we are still working closely with our customers in order to make the necessary adjustments—and we are confident that we will be able to maintain a stable supply. Also, regarding North America listed at the middle, the expectation is that the demand will remain at an annual rate of 3%, particularly with regard to tariffs. As for the automotive parts, while we anticipate a significant slowdown from now until next year, we plan to move forward by monitoring future demand trends—including those at Whitehall—and implementing cost-cutting measures. With regard to sales and profits, contracts for can stocks have generally been finalized until FY2030. production capacity for hot rolling is expected to increase as a result of investments in capacity expansion. Additionally, as the operation of recycling facilities progresses, we believe that the benefits of recycling will become apparent as flexibility in both the raw material procurement and processing capacity improve. Furthermore, the impact of the situation in the Middle East is—for the most part—limited at this stage. Regarding the impact of US tariffs, while we expect the US aluminum market to remain at high levels for the time being, we plan to closely monitor the situation starting Q4. Although it says “Southeast Asia and other regions,” demands for can stocks, in particular, are expected to grow in Europe, driven by the substitution of glass bottles. Regarding UATH’s sales and profits, we expect shipments from UATH to Europe to begin in H2 of FY2026, and shipments of heat exchanger materials for automobiles to North America are expected to continue performing well. As for the impact from the Middle East—just as in Japan, while we do ship some can stock to the Middle East—the impact is likely to be minimal. In addition, we are seeing rising prices for raw materials, secondary materials, energy, and so on.

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Taking these circumstances into account, page seven summarizes our Q1 results and full-year outlook. In the middle section, under Q1 of FY2026—as I mentioned briefly earlier—business profit was JPY25.7 billion, an increase of JPY17.8 billion. Net profit for the current period came in at JPY35.9 billion, representing a YoYincrease of JPY34.6 billion. On the right-hand side, which is our current FY2026 forecast, the business profit is projected at JPY86 billion, which represents an increase of JPY21 billion—compared to the May announcement. In addition, we are projecting net profit to be JPY42 billion, which represents an increase of JPY14 billion. At the very bottom of this page, we have summarized the assumptions regarding environment. The key point here is that LME prices have risen significantly this quarter, increasing by as much as USD1,129 compared to the previous year. As for foreign exchange rates, the dollar-yen rate stands at JPY160, which represents a JPY15-depreciation of the yen. Then, there is the crude oil from Dubai. Since the average price here was USD96 per quarter, this means that prices have risen by USD29 compared to last year. We have provided the external environment, as of this May—as well as our latest full-year forecast. We anticipate that aluminum ingot prices may decline slightly. However, with regard to crude oil prices in Dubai, we are basing our projections on the assumption that prices will rise by about USD9 compared to May levels.

Next, please see page eight. We have compiled the sales volumes of our mainstay, flat-rolled products, by product type. Sales volume for Q1 totaled 342,000 tons, representing an increase of 8,000 tons compared to the previous year. As shown in the change listed on the right, sales volume of beverage cans increased by 2,000 tons, while that of automotive material decreased by 1,000 tons, and meanwhile, sales of thick plate increased by 6,000 tons. Regarding the comparison between the full-year results of FY2025 and FY2026, sales volume for the current fiscal year are projected at 1,375,000tons, representing an increase of 58,000tons from the FY2025 results. This includes 21,000 tons for cans, 4,000 tons for automotive materials, 17,000 tons for thick plate, and 15,000

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tons for other general-purpose products. We therefore anticipate an increase in sales volume across all application areas compared to the previous year.

Next, page nine. This is a waterfall chart analyzing the business profit for Q1 of the previous fiscal year and the Q1 of the current fiscal year, FY2026. Although last fiscal year’s business profit came in at JPY7.9 billion, this fiscal year we have seen a JPY4.9 billionincrease primarily from the difference related to sales. As for the details—as shown in the callout above—the domestic flat-rolled product posted a gain of JPY2.1 billion, the TAA posted a gain of JPY1.6 billion, and meanwhile, the UATH posted a loss of JPY300 million. Also, there are other group companies. Our group companies are also growing, with their figures totaling approximately JPY1.6 billion, resulting in a differencerelated sales of JPY4.9 billion. Regarding manufacturing costs differences, there was a JPY17.2 billion-increase in profit. As shown in the callout on the right, the main factors were JPY4.7 billion from domestic flat-rolled products, JPY10.2 billion from TAA, and a JPY1 billion-increase from UATH. Other than that, there are no other major changes, but I would like you to take a look at the “Impact of the Middle East situation” section on the right. It shows a decrease of JPY2.4 billion, which means the situation in the Middle East had surely made an impact of JPY2.4 billion compared to the previous year. This was primarily due to the rising costs of raw materials, secondary materials, and so on. Based on these factors, profits came in at JPY25.7 billion, and the adjusted EBITDA came in at JPY36.4 billion, representing a significant increase in earnings.

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The waterfall chart on page 10 compares the business profit between the full-year forecast established in May of this fiscal year and today’s latest forecast. As of May, we had projected full-year business profit of JPY65 billion, but differences related to sales factors are expected to contribute an additional JPY4.6 billion. As indicated in the callout here—while the sum of domestic flat-rolled products, TAA and UATH equals zero— the Group companies, other than our three core companies, are projected to see a significant increase in demand starting in May, which accounts for the substantial JPY4.6 billion-increase. As for the manufacturing costs differences, they are projected to be JPY13.2 billion higher than expected, and the main factor behind this is that the TAA forecast is significantly higher than anticipated—which is at JPY11.8 billion. As for the energy or additive metals, the figure is JPY4.5 billion-minus. Since a surcharge system has been introduced here, this should be viewed as a reporting timing lag. As for the surcharges, while we had previously anticipated that the situation would stabilize by December as of May, we now believe that the impact of the situation in the Middle East will continue until March of next year. Therefore, we expect that there may be further reporting timing discrepancies regarding some surcharges. As for the foreign exchange and other items, the figure shown is JPY4.7 billion—and here, too, the main factor is the impact of foreign exchange rate conversions. The impact from the Middle East is showing a positive figure of JPY3 billion. This is because we have reduced the risk from the initially projected JPY15 billion to JPY12 billion. Consequently, the JPY3 billion-difference is factored in as a positive factor, resulting in a final projected business profit of JPY86 billion.

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Next, please turn to page 11, where you will find the balance sheet. There was an increase of JPY96.3 billion. This is primarily due to an increase in working capital.

Page 12 is the cash flow statement. For Q1 of FY2026, the profit before tax was JPY51 billion, the depreciation expense was JPY10.7 billion. Meanwhile, the change in inventory was a decrease of JPY39.5 billion, and the change in accounts receivable and payable was a decrease of JPY25.6 billion. As a result, after paying corporate income tax, operating cash

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flow was JPY7.2 billion-minus. In addition, capital investment totaled JPY15.9 billion, resulting in a negative free cash flow of JPY23.1 billion. As a result, interest-bearing debt increased by JPY21.6 billion. As shown in the center of the bar chart on the right, it brought the total interest-bearing debt for Q1 of FY2026 to JPY410.3 billion. However—given that we are generating significant profits—our capital has accumulated substantially—and as planned—our debt-toequity ratio stands at 0.9 times this time, which has also contributed to strengthening our financial position.

On page 14 is an overview of domestic flat-rolled product business. To reiterate, we have highlighted the fact that the demand for thick plates for semiconductor manufacturing equipment has recovered, while sales are exceeding projections, thus indicating that sales are likely to remain very strong. As you can see in the lower left corner, sales volume for Q1 was 151,000 tons. And looking at the trends so far, Q1 got off to a very strong start. In Q1, as noted in the key point on the right-hand side, I will reiterate that various costs are beginning to rise due to the situation in the Middle East. Below that, there is also an outlook for FY2026. Against the backdrop of demand for semiconductors and advances in digital technology, the demand from data centers and IT sectors has also been strong. In light of the situation in the Middle East and against the backdrop of rising costs across the board, we are highlighting our efforts to revise product prices starting this July as a key focus area for this fiscal year.

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Page 15 shows the current status of the TAA in the US. There has been no change to the forecast that demand for can stocks in North America will grow at an average rate of 3% until FY2030. As noted in the third point under “Market Environment,” we expect the restart of existing mills and the launch of new mills in the US in order to gradually accelerate starting this fiscal year— and we believe this may lead to a slight easing of supply-and-demand conditions within the US. Consequently, we anticipate that imports from overseas will decline, and the market within the US will gradually reach a balance. Next, regarding the production and sales in Q1, the expansion of hot-rolling capacity, in which we invested last fiscal year, is expected to contribute significantly to volume growth. Additionally, the operation of our recycling facilities is expected to improve flexibility for both raw material procurement and processing capacity. This forms the basis for our view that the benefits of recycled materials will continue to be realized. Given that our long-term contracts through FY2030 have already largely begun and the majority of them have been secured—and considering this background—I have a sense that the projected 3% market growth toward FY2030 is a reflection of this situation. Finally, regarding the outlook for FY2026, we expect the US aluminum market to remain at high levels for the time being, and we will continue to monitor the situation closely starting in Q4. In addition, the Company is benefiting from strong financial performance due to record-high prices for recycled materials. We will need to keep a close eye on this going forward, starting from Q4 onward.

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Page 16 shows the situation at UATH in Thailand. As for the market conditions here, I will repeat what I have said before. In particular, the supply and demand for can stocks is tight both in Europe and the US—and demand remains very strong in Southeast Asia as well. In addition to that, demand for can stocks in India remains strong, so the overall market continues to be very vibrant. Regarding production and sales in Q1, we have been able to achieve an optimal balance in production costs by expanding UBC’s procurement channels. With these factors in mind, we intend to ensure that these effects are fully realized starting in Q2. As for the full-year outlook for FY2026, we will begin shipping can stocks to Europe, and we will also continue shipping heat exchanger materials for automobiles to North America. Also, we plan to continue sales of support coils to TAA until FY2028. With this in mind, we intend to focus our efforts even more on this going forward.

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I would now like to move on to the topic of “Toward Management Conscious of Cost of Capital and Stock Price.” Page 18 shows shareholder returns. Again, we plan to revise our dividend forecast for FY2026 upward and increase the annual dividend to JPY70. It is an increase of JPY15 compared to the dividend in FY2025 and an increase of JPY12 compared to the plan we had last May.

Next, page 19 shows the improvements in return on capital. We have outlined the key points regarding our management initiatives aimed at enhancing shareholder value.

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With regard to the section on “Creation of Corporate Value” on the left, we intend to actively pursue growth investments and investments in order to strengthen our capabilities in growth areas. We intend to make substantial investments in these growth sectors—including AI & semiconductors, aerospace and defense, US can stocks, and recycling. The chart in the lower-left corner shows the trends in ROE and ROIC. For FY2026— although this is still based on our full-year forecast, our projections for ROE and ROIC, coincidentally, are at 11.5%. Furthermore, we will strive to generate a return on equity (ROE) that exceeds shareholders’ equity, with the aim of reliably creating an equity spread.

Page 20 shows the stock price trends for your reference.

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On page 21, we have included a few topics. We will be creating new value through cross-industry co-creation with JR West. Through co-creation originating on the front line, we will take on the challenge of building and entering new businesses in growth areas that will lead to the resolution of societal issues.

Please see page 22. Here are some highlights of our social contribution activities.

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We will support for wheelchair tennis player, Tokito Oda. We would like to support activities aligned with the concept of curiosity and challenge. On the right side of the slide is an endorsement of hot air balloon team. We have begun sponsoring the hotair balloon team, “Balloon Team Ze’phyr”, and this announcement is intended to convey our commitment to actively engaging in this field as well.

Finally, on page 23, we would like to provide some information about the upcoming events. We are planning to hold a business information session on Monday, October 19, in the afternoon. The event will focus on the theme of “Forging ahead with the formation of a circular economy for aluminum,” and we would be delighted if you could attend. That is all from me. Sudo: That is all for the presentation from the Company.

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Question & Answer

Sudo [M]: We will now take your questions. However, we ask for everyone’s understanding that we may refrain from answering your question—if there is a possibility that the content of your question may affect our business activities. If you have a question, please click the ‘raise hand’ button in the lower-right corner of the screen, so you can let us know. We will make the selection. We will be calling out your names shortly, so please unmute yourself and, if you are comfortable, turn on your video and ask your questions. I would now like to introduce first questioner. Mr. Atsushi Yamaguchi of SMBC Nikko Securities Inc., please go ahead. Please unmute yourself, and if you are comfortable doing so, turn on your video and ask your question. Yamaguchi [Q]: Thank you for your presentation today. Since your company did not originally provide any forecasts for H1 of the year, I would appreciate it if you could give us some insight—even if it is just qualitative—into the trends we can expect to see in business profit on a quarterly basis going forward. I would like to know the information similar to the graphs you used to post back in the day. This is my first question. Second, while I think there are areas where strong US metal benefits are driving profits, the market is currently very concerned—and the reason stock prices are weak today is largely due to the widespread view that you may have reached a peak. I believe this is largely because of the significant profit growth due to metal benefit. It seems unlikely that US Midwest Premium will drop anytime soon, but what is your company’s current view of this market environment? As domestic flat-rolled production increases—I believe the key factor here was the supply and demand for that sheet—I imagine procuring aluminum ingot is incredibly difficult in the US. What is your current assessment of the situation? Also, with talk of increased ingot production coming up in various places right now, I would like to know if prices will indeed fall once the demand and supply ease up. Also, I believe the US government recently announced that, since some parties in the US want to establish smelting processes, there has been talk about whether or not to lower tariffs slightly for that purpose. It was after the long weekend in July. The market is actually still struggling to interpret what kind of impact that will have, and I think part of the reason is that even after it was announced, the US Midwest didn’t flinch at all. Could you please tell us your company’s thoughts on this, taking all of that into account? Finally, UATH’s recent operating results have not been very strong in terms of business profit. Could you explain the background and what the outlook is? That is all. Tanaka [M]: Thank you for your question. You asked two questions. For the first question—now that the Q1 earnings report is out, you would like to know the overall assessment of how trends for H1 and the full fiscal year are likely to unfold, particularly in terms of business profit. The second point concerns the impact of recycled materials. There are talks that this might be the peak, and your question is how you should view the situation going forward. In addition, you asked the matter of preferential treatment regarding future US tariffs, as recently announced by the US government. Since we have received the above questions, Okada will address the first one, and Hashimoto will address the second one regarding the benefits of recycled materials and the US government. Okada [A]: I will now explain the outlook for business profit for the coming quarter. Business profit for Q1 was JPY25.7 billion, marking our highest quarterly profit to date, and we expect this trend to continue. I believe we will see business profit at a similar level in Q2 as well. However, there is also the fact that business tends to slow down a bit in H2 of the year. In addition, we anticipate that demand will remain quite strong going forward, and since we plan to thoroughly maintain and upgrade our various plants, we currently expect operating expenses and other costs to increase slightly. Therefore, while there is some uncertainty regarding

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how these risks will manifest going forward—we expect the full-year results to follow a similar trend to that of Q1. Yamaguchi [Q]: So, performance will go down in H2 of the year. Is it correct? I get the impression that it will drop slightly in H2 of the year. Tanaka [A]: While there is some seasonality, particularly in the domestic Japanese can stock market—which I believe will have a slight impact—I expect that other sectors will continue to perform well throughout H2 of the year. Next, regarding the second point about the impact of recycled materials—and about Thailand—Hashimoto will provide some comments. Hashimoto [A]: I believe your first point concerns the state of the US metal market. As you know, prices were quite high in Q1. I believe this was partly due to risks in the Middle East, but they have been falling slightly since then. While it does depend on the situation in the Middle East, the general view is that things will likely settle down as they are—but, on the other hand, the demand for aluminum is still very strong. Since the strong global market conditions remain unchanged, there is a view that prices probably will not drop that much. Regarding the 50% tariffs that the US has imposed on steel and aluminum—based on what I am hearing from people around me—there is a view that these tariffs are unlikely to be changed, so I expect the Midwest Premium to remain at a certain level. However, we are taking a somewhat conservative view, factoring in the possibility of a slight decline, which is reflected in the forecast we announced this time. In Thailand, production volumes were slightly lower during Q1, partly due to Songkran. Also, the sudden rise in MJP had an impact. MJP has both spot contracts and contracts like ours, which are on a quarterly basis. The impact of passing on costs to prices—based on spot figures rather than quarterly figures for some customers— was slightly evident this quarter. The difference stems partly from the fact that this trend is expected to continue, and partly from our shift to a quarterly basis for some customers. As a result, we have seen a slight impact in this quarter. However, this issue will be resolved going forward. The baht’s appreciation is easing, and production is currently proceeding smoothly. As mentioned earlier, shipments to Europe will begin in October, so our portfolio will continue to improve. Additionally, we are negotiating price increases for the Middle East market and have already secured approval for some of them. Therefore, we hope you will understand that we are moving in the direction of improvement going forward. Yamaguchi [M]: Understood. Tanaka [M]: In addition to that, regarding the US government tariffs we discussed earlier, Kumamoto could provide some additional explanation. Kumamoto [A]: I have some reservations about just how effective this measure will be. There are two main reasons. First, when we consider who might be a “potential beneficiary”—or whatever you would call it—and ask ourselves who might be doing something like this, it comes down to producers outside the US who are exporting their products to the US. There are two companies that come to mind, and one of them is in Russia. So, for one thing, it is hard to imagine the US government supporting the construction of a Russian smelter in the US. Next is electricity. In the US, there is a constant shortage of electricity for just about everything, and while reports suggest that the Japanese government’s JPY80 trillion in funding will be used to build two or three power plants, the question is: even if we spend that much to build them, what will that electricity actually be

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used for? I suspect data centers will account for the lion’s share. Therefore, a gigawatt-class power supply is required, and since operating a smelter would require more than 1 gigawatt, there are technical, or rather, fundamental challenges, such as how to manage the power supply. While I would not say the chances are zero, my view is that it will be quite difficult to get this off the ground. Tanaka [M]: Regarding the details of what Kumamoto just mentioned, your question was about the preferential treatment, which is reducing the rate from 50% to 25%, in connection with the upcoming smelting process. Is that correct? Yamaguchi [M]: That is right. That is my question. Tanaka [A]: That is right. We are still unsure about that point. As far as I can tell, the current proposal is to temporarily set the tariff rate at 25% until the smelting process is completed—in response to investments in that process. At this stage, we believe that this will likely not have a direct impact on us. Yamaguchi [Q]: Regarding those currently importing from abroad, the discussion is about offering preferential treatment to those who build smelters in the US. It is not about lowering tariffs on all imports, is it? Tanaka [A]: No, it is not. Kumamoto [A]: Because they lower it selectively. Yamaguchi [Q]: So, they are planning to lower it selectively, but the project has already stalled because there are doubts about whether it will actually be built in the first place. Tanaka [A]: That is right. That is what Kumamoto just mentioned. Yamaguchi [Q]: So that is why the market is calm. Hashimoto [A]: Also, even if there are plans, the volume is still limited when viewed in the context of total ingot imports. That probably will not have a major impact. For the time being, we will be taking that view. Yamaguchi [M]: Also, I will not ask a question today, but there is a concern among overseas investors that there might be an oversupply. It is because the flat-rolled product capabilities are constantly improving in the US. Since there are so many investors saying things like “it is all over now,” I think it would be a good idea for you to start putting together some materials to counter that. Thank you. Tanaka [M]: Thank you. Sudo [M]: Thank you for your question. The next question is from Mr. Yuji Matsumoto of Nomura Securities Co., Ltd. Mr. Matsumoto, please go ahead. Matsumoto [Q]: My name is Matsumoto from Nomura Securities. I have two questions. First, regarding the US metal benefits, I believe Mr. Okada mentioned during the May briefing that, since these effects generally manifest with a delay, the outlook for H1 of the year is already fairly clear. Based on the current situation, the new forecast seems to cover up to about Q3. I would like to ask what assumptions are being used for Q4, given that this has already been factored in. Also, regarding the contracts extending until FY2030, is my understanding correct that the base prices and other terms have already been largely determined? My second question is about UATH. Given what Mr. Hashimoto just mentioned regarding the sudden spike in Japan Premium, and considering that it has risen even further since then, I have a feeling that Q2 probably

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will not be much better either. Could you please explain how we should view this situation for Q2 and H2 of the fiscal year? That is all. Tanaka [M]: Thank you for your question. You asked two questions. I assume it is three in total. First point is about the benefits of using recycled materials. Okada will explain this matter, and Hashimoto will then provide answers regarding the contract through FY2030 and additional comments on UATH. Okada [A]: Regarding our outlook on the benefits of utilizing recycled materials—as you mentioned—we have incorporated this into our plan based on the assumption that the figures through the current Q3 are already virtually finalized. However, since the contracts for Q4 and beyond have yet to be finalized, the situation is likely to remain uncertain for the time being. Thus, we have tentatively classified them at a slightly different level than those in Q3. That is all. Tanaka [A]: As far as UBC's price is concerned, I would say that we are looking at it from a somewhat conservative perspective. Now, regarding the second point, Hashimoto will speak. Hashimoto [A]: This is a contract in the US. As you know, in the US, contracts are typically signed for fairly long terms—which lasts for three years, or even four or five years in some cases. Most of these contracts are in place until FY2030, and the base price has already been set. The quantities and base prices are fixed, and then there are annual escalations, price adjustments, and cost projections. I hope you will understand that a broad framework, such as carrying over the previous year’s PPI into the following year, has been established. As for MJP, which was the subject of your other question, it is indeed true, as you said, that it has remained high. The reason I said Q1 is because there is a time lag. Since the time lag has been worsening in Q1, we expect it to improve starting in Q2 and beyond. Also, since the spot prices vary significantly this time, we are working with some customers to adjust them and match the quarterly rates. Improvements are being made in that area as well. That is all. Tanaka [M]: I hope I answered your question. Matsumoto [M]: It is fine. Thank you. Tanaka [M]: Thank you. Sudo [M]: Thank you for your question. The next question is from Mr. Yu Shirakawa of Morgan Stanley MUFG Securities Co., Ltd. Mr. Shirakawa, please go ahead. Shirakawa [Q]: This is Shirakawa from Morgan Stanley MUFG Securities. Thank you for your presentation today. I have one main question, though I realize it will likely cover several points. I would like to know about domestic business. First, regarding the Q1 domestic business profit—which I believe comes to about JPY9 billion by calculation— we saw a significant increase QoQ. You mentioned that sales of thick plates used for semiconductor manufacturing equipment are also picking up. Could you explain the background behind this improvement? Also, on page 10, if we look solely at the manufacturing cost differences for domestic flat-rolled products, it appears to be trending downward. I would like to ask how the domestic flat-rolled products in differences related to sales—which is JPY4.6 billion in total—has changed. And this is my third point—by calculation, domestic profits seem to decline significantly from Q1, though profits are still being generated, and the outlook suggests they will continue to decline in Q2 onward. Is this assessment correct? The background for that is, given the current situation where various energy costs and other prices are rising, that you could not

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fully capture profit due to timing lags. Could you please explain whether you will be able to properly capture profit in the next fiscal year? These are three questions. Tanaka [M]: First, regarding your question focused on the domestic business, Hashimoto will explain the background of improvement in domestic business together with the situation in each sector. Additionally, regarding the point on page 10, where it appears that domestic figures are declining slightly from Q1—and since the comments regarding the JPY4.6 billion were somewhat difficult to understand—Okada will follow up with further explanation on these points. First, Mr. Hashimoto, please explain the current situation in each domestic sector. Hashimoto [A]: There are several reasons why Q1 went well, but first of all, the volume has increased. We have been seeing volume increase since Q1. Turning to page eight, while these figures are YoY comparisons, there are some areas with an increase. Also, if you look at another material, specifically page 14, you will see that the volume has risen significantly. There are various products in this increase, including thick plates for semiconductor-related products—as well as data center-related items such as disks, foil substrates, and enclosures. In addition, there has been an increase in home appliance-related items, such as air conditioner fins, so the total volume is very high. The other reason is that shipment has been made in full during Q1. Speaking of volume, thick plates are relatively profitable, so their share of the mix is increasing. The other reason is price adjustment. We have been negotiating throughout the past year, and the prices have been rising since H2 of last fiscal year, which will fully penetrate from April onward. So, we expect to see some increase for that. Also—although it is the case only for Q1—the price of ingot rose sharply from the end of March through April. That impact had a slightly positive effect in Q1, and it looks like things will level off again starting in Q2. Okada [A]: Next, on page 10, under the “differences related to sales” part, which is JPY4.6 billion—when you add up the figures shown in the callouts for the domestic flat-rolled product, TAA, and UATH, the total comes to zero. Compared to the May forecast, the Group companies outside these three segments—particularly the foil manufacturing group, the extrusion processing division, and UWH—appear to be heading toward betterthan-expected results. In addition, in the aerospace and defense sectors, as well as in distribution, across all of these areas, performance has exceeded the plans we set in May. The total comes to about JPY4.6 billion. Additionally, regarding changes from Q1, the figure for the Q1 comparison is JPY4.9 billion. But since the comparison periods differ, I am unable to explain them together. As for page 10, I think my response should suffice. What do you think? Shirakawa [Q]: Earlier, you mentioned that while spot prices rose sharply in March and April resulting in a profit for Q1, and that trend is expected to disappear starting in Q2. What is that profit? Okada [A]: Roughly JPY2 billion to JPY3 billion, I would say. Shirakawa [Q]: Understood. Also, regarding the “Other” category, I understand that everything is performing well and that the total is around JPY4 billion. There was also mention of UWH, but looking at the business profit, it appears that business profit was revised downward by JPY100 million in the plan you announced this time. Given that, can I understand that the extrusion and foil manufacturing segments, among others, are performing significantly better than originally planned? Okada [A]: As for UWH, since we have raised our business profit forecast to JPY400 million—compared to our forecast in May—it is an upward revision of about JPY500 million. Regarding the explanation just given, we are looking at it from the perspective of the breakdown of differences related to sales. Since the final profit or loss for each business segment is determined by factors, such as other manufacturing cost variances and energy-related costs, I believe this explanation clarified that the perspective here is slightly different.

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Shirakawa [Q]: Excuse me, but what are the factors behind the significant improvement in foil and extrusion performance compared to the start of the fiscal year? Okada [A]: First, part of the reason is that we made conservative sales plan originally. Also, demand has been extremely strong for storage batteries, and there is an expectation that demand from data centers and similar sectors will remain very solid and continue to perform well. Also, the effect of price revisions is forecast. These are the major reasons for good performance of foil segment. Shirakawa [M]: Understood. Thank you. Tanaka [A]: And then there is the price adjustment. The price adjustment was the biggest factor. Shirakawa [M]: So, the price hike is the biggest factor. I understand very well. Thank you. Sudo [M]: Thank you for your question. The next question is from Mr. Harunobu Goroh of UBS Securities Japan Co., Ltd. Mr. Goroh, please go ahead. Goroh [Q]: Thank you. Generally speaking, I get the feeling that the business profit has not been functioning as true indicators of underlying performance this time. I have two questions aimed at clarifying this point. First, regarding your assessment of the impact of the Middle East situation, I believe the explanation was that, at the beginning of the fiscal year, roughly half of the JPY15 billion was attributed to demand and half to cost increases. Later, during the IR Day session, regarding the cost increases, the Company stated that it would pass them on through revisions to roll margins, starting in Japan in July. As for the US, while it might not happen until January due to the PPI linkage—you mentioned— that despite the time lag, the costs can ultimately be passed on. Given that the impact is expected to linger a bit longer this time, it is considered that three months’ worth was added. If, as principle, the cost increases could be offset by price hikes, I wonder if you could scale it back a little. A decrease of JPY7 billion on the demand side. I guess it was originally around JPY7.5 billion. Does this mean that the portion that was expected to account for half of the total has not yet materialized to any significant extent in Q1? My impression is that the JPY12 billion figure here represents an impact unrelated to actual performance, and that there is not yet a firm conviction that this amount will ultimately be recouped and turn into a positive once the situation stabilizes. This makes me wonder if there are areas where price pass-through is not actually proceeding as expected. Could you explain the background for the fact that you still estimate JPY12 billion? This is the first point. Another factor is the differences related to sales and manufacturing cost differences. As you have been explaining this within the same framework as before, the market seems to view your profits as simply being driven by fluctuations in aluminum prices and market conditions, and that this will ultimately lead to a peak in your profits. I think you will need to provide an explanation in the future from the perspective of how much of this was attributable to strategic investments. For example, regarding metal benefits, the impact of the increased scrap blend ratio and utilization rate is roughly this much. It would be great if we could actually conduct an analysis showing the price difference to be roughly this much, as well as the effects of improving the product mix in terms of sales-related differences—and the same applies to the thick plates for semiconductor equipment we mentioned earlier. I believe the increase in sales in high-margin segments is also a result of the positive impact of strengthening your product lineup, such as heat-treated materials. So, I would like to see whether these factors, which are likely to continue driving profit growth, mean that the current figures are not a peak but rather that your underlying performance will continue to improve as you build on these results.

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Given that you are now past the halfway point of the medium-term plan, the figures currently being released have already become a mere formality. I mean, the targets in the medium-term plan. Along with the future direction for this area, I feel it would be good to focus more on how you can bring out your true potential. Sorry for the long message, but I would appreciate it, if you could explain this part to me. That is all. Tanaka [M]: Thank you for your question. One point is its influence in the Middle East. The figure has been revised from JPY15 billion to JPY12 billion, and you would like to know what reasoning is behind this projection. Another point, I believe, relates to advice on how the effects of strategic investments and other factors are incorporated into this framework and how we should proceed from here. In that case, I would like to ask Hashimoto to explain how we have factored in the impact of the Middle East—specifically our approach and reasoning behind it. Hashimoto [A]: As you pointed out, there are possibilities that the cost of secondary materials will rise going forward. Of course, there is energy, too. Lately, there has been some discussion about how to view the cost of secondary materials, which has been gradually rising since April. Prices are holding steady for now, but there is no telling what will happen going forward. We have factored in the increases that have occurred to date—and as part of the price adjustment—we have begun implementing the changes with the understanding and cooperation of about 80% of our customers. Therefore, while we expect to be able to pass on a certain portion of the costs increases, there is a possibility that cost will continue to rise from here on out. In that sense, it might seem a bit on the conservative side, but I hope you will understand that these are the figures we have arrived at. Tanaka [A]: Also, regarding the second point, it is becoming a little difficult to gauge the actual performance levels. So, you pointed out how you should view business profit. As you rightly pointed out, we do explain our actual performance and business profits, but since several items are included in those figures, I do think there may be aspects that are difficult to grasp from an outside perspective. From that perspective, there is also the question of how much we can disclose regarding the points you mentioned earlier—such as distinguishing between the effects of strategic investments and other factors. However, we would like to provide some clarification on these matters, including the overall picture, so that investors can better understand them. We plan to continue discussing that point in future meetings. Thank you. Goroh [Q]: Sorry. Just to clarify one more point regarding the impact of the Middle East—you mentioned at the beginning of the quarter that demand and costs account evenly in the risk estimate you made. In terms of the new estimate, how should we interpret the proportions of both the demand and cost? Hashimoto [A]: Looking at the overall situation of our customers, I believe that the management is handling things properly, so I do not foresee a significant drop in demand due to the situation in the Middle East. We have left this out this time. Goroh [Q]: In that sense, are you treating the remaining JPY12 billion as a time lag in the price pass-through that should have been implemented? In other words, regarding the next fiscal year—assuming things settle down—should we view this as a factor that will be resolved and thus contribute to increased profits? I would appreciate it if you could clarify the definition here. Hashimoto [A]: For the increase in cost that has taken place so far, we have discussed with the client, and got the agreement from 80% of our clients. If cost rise further, it will likely be quite difficult to ask our customers to bear the cost again, at least within this fiscal year. Therefore, we are treating this as a risk. Goroh [M]: Understood. Thank you.

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Sudo [M]: Thank you for your questions and opinions. The scheduled time has arrived, so we will conclude today's briefing. For further inquiries, please contact the IR Department. This concludes the financial result briefing for Q1 of FY2026 of UACJ Corporation. Thank you for your participation today. Tanaka [M]: Thank you. Sudo [M]: We will continue to strive to meet the expectations of our shareholders and other stakeholders, and we look forward to your continued support. [END]

Document Notes 1. 2.

Speaker speech is classified based on whether it [Q] asks a question to the Company, [A] provides an answer from the Company, or [M] neither asks nor answers a question. This document has been translated by SCRIPTS Asia.

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