Notice of Recording Extraordinary Losses (Losses Due to Earthquake and Disaster) and Revision of Earnings Forecast

Summary of Earnings Impact and Extraordinary Losses

This document reports the results for the interim consolidated accounting period of the fiscal year ending March 2027 and revisions to the full-year outlook, including extraordinary losses due to the 2026 Kumamoto earthquake and the impact of a disaster at NDP Co., Ltd. Earthquake-related extraordinary losses, including impairment of fixed assets, amount to 15.1 billion yen, and disaster-related extraordinary losses related to the NDP Co., Ltd. plant accident amount to approximately 11.0 billion yen. Accordingly, the full-year earnings forecasts have been updated from TBD to the revised figures: net sales of 1,220,000 hundred million yen, operating income of -5,000 million yen, ordinary income of -13,000 million yen, net loss attributable to owners of parent of -40,000 million yen, and net loss per share of -346.90 yen. The operational suspension at NDP Co., Ltd. is the primary cause of the operating loss, and insurance proceeds of approximately 3.0 billion yen are planned to be recorded as extraordinary gains from the third quarter of the fiscal year ending March 2027 onward.

Outlook and Key Considerations

At this time, it is difficult to estimate future impacts and the progress of lawsuits and investigations related to NDP Co., Ltd.; the earnings forecasts had been disclosed as TBD, but have been revised and published based on recent developments. The estimated amounts of extraordinary losses have been calculated within a reasonably estimable range, and any additional information will be disclosed promptly. The outlook also incorporates costs related to business structure reforms, including personnel rationalization at Opal Co. and costs associated with the transfer of the bag-making business.