Notice Regarding Recognition of Deferred Tax Assets and Revision of Consolidated Earnings Forecast

Overview of Earnings Revision

This report announces additional recognition of deferred tax assets and an upward revision of consolidated earnings forecasts. After careful consideration of the recoverability of deferred tax assets in the interim period, an adjustment to income taxes of approximately 500 million yen is expected to be recorded, and net sales, profit indicators, and earnings per share are expected to exceed the previous forecasts. The revised interim and full-year figures show net sales of 7,800 million yen for the interim and approximately 10,500 million yen for the full year, and operating income, ordinary income, and net income have all been substantially revised upward.

Impact on Shareholders and Future Outlook

The revisions for the interim and full year are expected to substantially improve profit indicators attributable to owners of the parent. Future performance assumptions include increased production of tissue machine belts and expanded sales in overseas markets; however, actual figures may fluctuate due to external factors such as foreign exchange movements.