Notice of Revision to Full-Year Earnings Forecast and Dividend Forecast (No Dividend)

Revision of Earnings Forecast and Background

While continuing business structural reforms under the rehabilitation plan and promoting a digital shift in mail-order operations, full-year net sales are expected to fall below the previous forecast due to strengthened consumer frugality from rising prices and a decline in orders. As a result, consolidated operating and ordinary losses are expected, and net loss attributable to owners of parent is expected to be 500 hundred million yen. Going forward, the company will steadily execute the rehabilitation plan and aim to return to profitability at an early stage. The budget for the fiscal year ending December 2027 is being prepared and will be disclosed at the financial results announcement.

Dividend Policy and Impact on Shareholders

Although the dividend forecast for this fiscal year had been TBD, the conclusion is to set the year-end dividend to no dividend. There will be no annual dividend (no dividend), and direct cash returns to shareholders are suspended. Management resources will be concentrated on rebuilding the business base and improving profitability.