Notice Regarding Differences from Prior Period Consolidated Results and Recognition of Inventory Valuation Loss, Provision for Allowance for Doubtful Accounts and Adjustment for Corporate Taxes (Benefit)

Overview of Results

For the fiscal year ended August 2026, consolidated revenue increased 1.0% year-over-year on an IFRS-comparable basis. The main contributors were expansion of generative AI-related contracts in the AI solutions business and improvement in gross margin, as well as a shift to GPU server business leading to improved gross profit. Operating income improved significantly year-over-year due to increased gross profit and reduced selling, general and administrative expenses. Profit before income taxes increased, and net income attributable to owners of the parent also improved substantially. Meanwhile, the Company recorded inventory valuation losses, a provision for allowance for doubtful accounts, and an adjustment for corporate taxes.

Future Impact and Factors

Although inventory valuation losses of 29,387 thousand yen, provision for allowance for doubtful accounts of 38,644 thousand yen, and adjustment for corporate taxes of 21,670 thousand yen will affect final period results, overall revenue and profits have improved. Focus areas include inventory valuation for the GPU server business and management of recovery risk for non-performing receivables, while continued AI-related demand is expected to contribute to the sustainability of earnings.