Notice of Revision to Consolidated Earnings Forecast for the Second Quarter (Interim) of the Fiscal Year Ending March 2027

Summary of Revision to Earnings Forecast

Oi Electric Co., Ltd. has revised downward its consolidated earnings forecast for the second quarter (interim) of the fiscal year ending March 2027. Net sales are revised down by 1,500 million yen from the previous forecast to 14,300 million yen. Operating income and ordinary income are revised to -200 million yen and -200 million yen respectively (down -200 million yen and -380 million yen from prior forecasts), and net income attributable to owners of parent is expected to be 110 million yen, or 84.70 yen per share. The main factors are a shift in the timing of revenue recognition for certain orders of optical transmission equipment in the information and communications equipment manufacturing and sales business to the second half, and deterioration of profit margins due to rising raw material costs. Network construction and maintenance proceeded as planned. The full-year forecast remains unchanged.

Outlook and Points to Note

The shift in timing of first-half revenue recognition and higher material costs are affecting performance. The full-year forecast assumes recovery of deferred second-half revenue and profitability improvement measures for devices for second-generation smart meters. If further revisions become necessary, they will be disclosed promptly.