Notice Regarding the Outlook on Earnings Impact from Wastewater Discharge Containing Benzene, etc., from Our Okayama Plant

Impact and Response

This disclosure provides the outlook on the financial impact of the wastewater discharge incident at the Okayama plant. An extraordinary loss of approximately 300 million yen is expected to be recorded in the full-year consolidated financial results for the fiscal year ending November 2026. In the cumulative third quarter period, a gain on sale of investment securities of 237 million yen has already been recorded as an extraordinary gain, and no revision to the full-year forecast is being made at this time due to the recording of the extraordinary loss. The company plans to systematically proceed with improvements and relocation of wastewater structures over about two years and intends to capitalize approximately 500 million yen of capital investment as property, plant and equipment from the next fiscal year onward.

Outlook and Impact on Shareholders

While costs for wastewater countermeasures and soil and water quality investigation expenses are expected to be recorded, there are currently no plans to revise the full-year earnings forecast, and the financial impact including the extraordinary loss is expected to be limited. Investment in facilities for preventing recurrence and future financial planning are expected to mainly affect periods from the next fiscal year onward, and the company intends to provide appropriate information disclosure as needed.