Notice regarding Recording of Extraordinary Loss, Revision of Full-Year Earnings Forecast for the Fiscal Year Ending September 2026, and Voluntary Return of Executive Compensation

Recording of Extraordinary Loss and Revision of Earnings Forecasts

Today, we recorded impairment and provisions for assets related to HI Co. as an extraordinary loss and revised our full-year consolidated and non-consolidated earnings forecasts for the fiscal year ending September 2026. Consolidated net sales are projected at 1,305 hundred million yen and operating income at 71 hundred million yen, while net income attributable to owners of parent is expected to be -138 hundred million yen. The revision reflects the decision to effectively fully impair the outstanding investments and loans to HI Co. and related companies.

Policy on Executive Compensation and Dividends

Executives will voluntarily return part of their compensation. The Representative Director and President will return 50% of their compensation for three months, the Executive Managing Director will return 30%, and other full-time directors will return 20%; performance-linked bonuses for executives for the same period will not be paid. The dividend forecast for the fiscal year ending September 2026 remains unchanged. Transactions with HI Co. will be limited going forward to the procurement of food sales products.