Notice Regarding Differences Between Full-Year Consolidated Earnings Forecast and Actual Results and Differences in Non-Consolidated Financial Results Compared to the Previous Fiscal Year

Performance Overview

For the fiscal year ending September 2026, consolidated revenue fell short of the previous forecast, but consolidated operating income slightly exceeded the forecast due to improved profitability. However, ordinary income and net income attributable to owners of the parent fell below expectations due to extraordinary expenses and valuation losses on derivatives. The primary cause of the variance was costs related to the GIGA School project, while increased demand in the reuse and recycling business contributed positively to overall profits. On a year-on-year basis, non-consolidated results improved significantly.

Outlook and Impact for Investors

The full-year variances are attributable to temporary expenses, interest payments, and recorded derivative valuation losses. Although there have been delays in the GIGA School-related bidding schedule, the company states there is no impact on overall revenue prospects. Non-consolidated revenue and profit are supported by strong performance of group companies, and there remains room for further improvement. Investors should be mindful of short-term cost factors while monitoring demand growth in expanding business areas and overall profitability improvements across the group.