Notice of Revision to Full-Year Consolidated Earnings Guidance for Fiscal Year Ending March 2027

Overview of Revision to Earnings Guidance

This document announces a revision to the full-year consolidated earnings guidance for the fiscal year ending March 2027. Although net sales remain unchanged from the previous forecast at 110,000 hundred million yen, operating income, ordinary income and net income attributable to owners of parent have been significantly downward revised. The reasons include three main factors: production cuts in China that exceeded expectations; domestic sales increases that were insufficient to offset profit declines; and more aggressive upfront fixed-cost investments for cost containment, as well as timing mismatches in recovering North American tariff impacts and inflation.

Outlook and Points of Caution

The company describes the profit decline drivers as short-term factors, and states that the upfront investments are expected to be recouped over time as investments for future growth. Although uncertainties remain, including foreign exchange and regional impacts, the company notes that the revised guidance is based on information available as of the publication date. Attention should be paid to the continued risk of performance fluctuations in subsequent fiscal years depending on the timing of recovery and any additional measures.