Notice Regarding Differences Between Forecasts and Actual Results for the Second Quarter (Interim) of the Fiscal Year Ending March 2027 and Revision of Full-Year Earnings Forecast

Overview of Results

In the second quarter (interim) of the fiscal year ending March 2027, operating revenue exceeded the previously announced forecast due to steady credit transaction volumes in domestic operations. Control of selling, general and administrative expenses and the deferral of certain expense recognitions also contributed, resulting in interim profit indicators above prior forecasts. For the full-year forecast, revisions were made reflecting an expected decline in domestic transaction volumes and the impact of interest rate trends: operating revenue was revised upward, while operating income and ordinary income forecasts remain unchanged. From the third quarter onward, assuming increased expenses and changes in the interest-rate environment, a substantial rise in financial expenses is anticipated.

Outlook and Impact on Shareholders

There is no change to the full-year dividend forecast, and planned recording of special losses related to structural reforms will be offset by sales of policy-held shares. In the fourth quarter, securitization of low-yield receivables is planned, and the outlook takes into account the resulting impact on financial expenses. Although selling, general and administrative expenses are expected to increase with higher transaction volumes, the company aims to achieve stable cash flow and profitability overall.