Notice of Revision to Earnings Forecast Due to Recording of Extraordinary Loss (Executive Retirement Gratitude Payment)

Revision to Earnings Forecast

Following approval at today's ordinary general meeting of shareholders, the company expects to record an extraordinary loss equivalent to 1,761 million yen for the provision for executive retirement gratitude payments due to payment of founder's merit payments to retiring directors and the introduction of an executive retirement gratitude payment system. As a result, the consolidated earnings forecast for the fiscal year ending July 2027 has been revised. While net sales remain at the previous forecast of 13,000 million yen, operating income and ordinary income are each revised to 1,000 million yen, and net income attributable to owners of parent is revised to -600 million yen.

Impact on Shareholders and Outlook

The reason for the revision is the recording of compensation-related expenses and costs associated with the introduction of the new system, and under the 16-month accounting period from August 1, 2026 to the end of July 2027, profits are expected to decrease compared with the previous year. The forecasted year-end dividend for the fiscal year ending July 2027 is unchanged. No additional specific information regarding future outlook has been disclosed, but increased costs are expected to put pressure on profits.