Revision of Full-Year Consolidated Earnings Forecast for the Fiscal Year Ending December 2026 and Adjustment of the Medium-Term Management Plan Due to Recognition of Impairment Losses, Recording of Financial Expenses (Foreign Exchange Losses), Reversal of Deferred Tax Assets and Losses from Site Reorganization

Earnings Overview

In this fiscal update, the full-year consolidated earnings forecast for the fiscal year ending December 2026 has been revised. While revenue is expected to increase, recognition of an impairment loss of 78 hundred million yen and site reorganization expenses of 48 hundred million yen will result in an operating loss. The recording of foreign exchange losses and the reversal of deferred tax assets further worsen income before tax and net income attributable to owners of parent. The medium-term plan has been revised with the final year postponed to the end of December 2030.

Outlook and Impact

Revised foreign exchange assumptions and a deteriorating European business environment are affecting results. Additional plant closures and introduction of lean management aim to reduce selling, general and administrative expenses, but are expected to delay short-term profit recovery. The final year of the medium-term plan is pushed back to the end of December 2030, while the objective to raise ROE to 14% is maintained and strengthened.