Notice regarding the submission of corrections to prior-year securities reports, etc., and corrections to prior-year financial summaries

Key points of the corrections

The corrected reports announced today, and the financial summaries subject to correction, focus on retrospective adjustments due to re-examination of inventory valuation, spanning from 2021 to 2026. The policy shifts from a turnover-period basis to using individual inventory items’ turnover periods, resulting in corrections to inventory balances deemed overstated. Additional errors identified include recognition of inventory write-downs, removal of miscellaneous income recognized from cancellation proceeds of insurance reserves, and reduction/cancellation of stock-based compensation expenses.

Impacts and future outlook

Corrections affect consolidated results for the past years, with adjustments to each period’s revenue and profit items. The impacts are detailed per item, with notable reductions in operating income, ordinary income, and net income attributable to owners of the parent. Going forward, the corrected figures will be applied to financial statements, and investment decisions should reflect the latest corrected information.