6301.T

Strategic Growth Plan Pillars - Create customer value through innovation: Operated power agnostics truck at a copper mine in Sweden, conducted POC test of hydrogen fuel cell powered hydraulic excavator, advanced development of SPVs for next-gen mining equipment, promoted autonomous driving for Construction Equipment. - Drive growth and profitability: Received first major mining equipment order in Middle East, began deploying AHS in U.S., strengthened remanufacturing business via acquisition, initiated training center in Côte d'Ivoire. - Transform business foundation: Embed risk management through ERM, strengthen supply chain, accelerate HR development using AI and digital transformation. ### Other Highlights: Acquired remanufacturing business for construction and mining machinery components, conducted hydrogen fuel cell excavator demo test, exhibited at CONEXPO trade show, acquired forestry machinery manufacturer, reached 1,000 units of AHS

Fiscal 2026 Forecast - Net sales projected at JPY 4,118 billion, down 0.4% y-o-y. Operating income projected at JPY 508 billion, down 10.5% y-o-y. Net income projected at JPY 318 billion, down 15.5% y-o-y. - ROE projected at 9.1%. Dividend per share JPY 190, same as previous year. Plan to repurchase treasury stock up to JPY 100 billion. - Construction Machinery and Mining Equipment and Utilities segment: Revenue expected to decrease 0.4% y-o-y to JPY 3.79 trillion, segment profit decrease 10.4% to JPY 440 billion. - Retail Finance: Revenue expected to increase 1.1% y-o-y to JPY 127.5 billion, segment profit decrease 1.6% to JPY 36 billion. - Industrial Machinery and Others: Revenue expected to increase 0.1% y-o-y to JPY 239 billion, segment profit decrease 2.5% to JPY 37 billion

Construction, Mining & Utility Equipment: Net sales increased by 0.2% to JPY 3,806 billion, segment profit decreased by 18% to JPY 491.1 billion, segment profit ratio 12.9%. Retail finance: Sales increased by 2.4% to JPY 126.1 billion, segment profit increased by 24.4% to JPY 36.6 billion. Industrial Machinery and Others: Sales increased by 6.8% to JPY 238.8 billion, segment profit increased by 38.5% to JPY 37.9 billion

Risks - Middle East situation: Impact on sales, e.g., JPY 90.1 billion sales decline expected. - U.S. tariffs: Cost increase of JPY 67.8 billion, with JPY 30 billion refunds, net cost increase JPY 37.8 billion. - Production uncertainty: Unclear impact of crude-oil-derived material shortages on production. - Regional demand decline: E.g., Indonesia mining equipment demand affected by coal prices, Middle East demand decline. - Competition: Challenges in achieving price increases amidst competitors like Caterpillar not raising prices

Q: Regarding tariff impact and price increases, how is the expectation for fiscal '26?

A: U.S. tariffs impact on a full year basis, refunds accounted for, pricing progress and visibility discussed.

Q: About mining equipment, impact of Middle East and metal prices?

A: Impact on sales and demand, cautious outlook on Indonesian market.

Q: Cash flow and buyback, decision-making process?

A: Free cash flow track record, considerations for buyback.

Q: Tariff impact breakdown and mitigation measures?

A: Breakdown of tariff impact, efforts to reduce impact through supply chain and other measures.

Q: Production impact from Middle East and replacement cycle?

A: Uncertainties in production, explanation of replacement cycle