Notice Regarding Recording of Extraordinary Loss Due to Suspension of Operations at El Salvador Subsidiary and Recording of Extraordinary Gain from Transfer of Fixed Assets

Overview of the Incident

In connection with the suspension of operations of our consolidated subsidiary I USA, retirement-related costs of 500 million yen were recorded as business structure improvement costs and recognized as an extraordinary loss in the consolidated accounting period for the second quarter of the fiscal year ending March 2027. In addition, relating to the transfer of held fixed assets announced in September 2026, a gain on sale of fixed assets of 1.3 billion yen has been recognized as an extraordinary gain reflecting completion of the first delivery. The second delivery is scheduled for May 2027, and a similar extraordinary gain is expected to be recorded again in the consolidated accounting period for the first quarter of the fiscal year ending March 2028.

Future Impact and Outlook

The impact of this matter on the full-year consolidated earnings forecast for the fiscal year ending March 2027 is currently under review. If additional disclosures become necessary, we will announce them promptly.