Message to Shareholders

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About Us

Nittetsu Mining Co., Ltd. ("our company") was established after separating from the mining division of the former Japan Iron & Steel Co., Ltd. (presently, Nippon Steel Corporation) in 1939. The intention was to develop and steadily supply raw materials, such as coal, iron ore, and limestone, for steelmaking.

Since then, our company has prospered and expanded, while bearing a heavy responsibility for supplying raw materials to basic industries in Japan through the development of underground resources. Amid a revolution in the resources and energy sectors during a period of economic growth, our main operations have changed from coal to metal and limestone. Today, our company has established a unique position in the industry as a comprehensive resources corporation engaged in mine development both at home and overseas.

From now on, responding to social demand, we will make every effort to steadily supply these resources. At the same time that we are using the traditions and technologies accumulated over a long period, we will tackle the development of other technologies around mines, such as security and the development of new resources both at home and overseas; adding value to mineral resources; and consulting on mining and geology, among other activities. We will take further action to strengthen our business base as a comprehensive resources corporation in order to achieve further growth.

In addition, we will contribute to our shareholders, customers, and community by demonstrating the total strength of our company group and through the development of such businesses as machinery and other products centered on preserving the environment, as well as the real estate business, renewable energy, etc.

Financial Results for the Fiscal Year Ended March 2025

During the current fiscal year, despite being affected by inflationary pressure due to surging resource and energy costs, increased labor expenses, and fluctuations in financial and capital markets, the Japanese economy maintained a moderate recovery trend. This was supported by improved employment and income conditions, driven by increased corporate earnings, and the expansion of inbound tourism demand.

Under these economic conditions, the Group saw increased revenue in the Mineral Resources and the Machinery & Environmental Engineering, resulting in a net sales figure of 196,766 million JPY, a 17.9% increase compared to the previous fiscal year.

In terms of profit/loss, operating profit declined by 8.2% year-on-year to 10,257 million JPY due to decreased profitability in the Metallic Minerals and other factors. Ordinary profit decreased by 5.1% to 11,437 million JPY, despite an increase in equity-method investment gains, as this was offset by the decline in operating profit.

Net income attributable to owners of the parent company rose by 36.6% to 9,019 million JPY compared to the previous year, owing to gains from the sale of shareholdings and the receipt of insurance proceeds related to a fire incident.

• Financial Highlights

Dividend

Regarding dividends, its basic policy is to provide stable and long-term dividend payments while maintaining an optimal balance between enhancing equity capital and returning profits to shareholders. Based on this policy and taking into account its consolidated performance, it aims for a consolidated payout ratio of 40%. In line with its minimum dividend policy of ¥170 per share, it has set the annual dividend at ¥224 per share, resulting in a consolidated payout ratio of 41.0%.

Outlook for the Future

Looking ahead, the business environment remains uncertain due to rising resource and energy prices stemming from heightened geopolitical risks, persistent inflation driven by higher labor costs, and concerns over significant volatility in financial and capital markets. Additional factors include potential dampening of domestic demand and the impact of increased tariffs stemming from U.S. trade policies. Furthermore, structural reforms in the steel industry and efforts by governments and private companies toward realizing a decarbonized society are expected to bring substantial changes to its business environment.

In response to these challenges, the Group will work to strengthen sales, improve productivity, reduce various expenses, enhance its Business Continuity Plan (BCP), and promote sustainability. Through these initiatives, it aims to reinforce and expand its business foundation and improve performance, while contributing to the realization of a sustainable society.

Moreover, it is committed to fulfilling its essential role in the long-term supply of raw materials to key industries. It will strive for sustainable growth and medium- to long-term enhancement of corporate value by promoting mutual prosperity with its stakeholders, including shareholders, business partners, local communities, and employees, while advancing its corporate governance initiatives.

The Group is also proactively engaged in promoting sustainability. With the goal of achieving carbon neutrality by 2050, it is working on improving facility efficiency, introducing energy-saving technologies, reforesting former mine sites, obtaining forest certification for the Group-owned forests, and generating power using renewable energy. It will continue to pursue environmentally responsible business practices.

Additionally, to build a foundation that allows the Group to remain competitive and thrive, it views human resources as capital and aim to fully unlock their potential. It will promote initiatives that contribute to corporate value creation.The Group sincerely ask for your continued support and cooperation as it moves forward.

June 2025

Reiichi Morikawa
Representative Director and President