Notice Regarding Recording of Special Loss Due to System Failure Caused by Ransomware Attack, Withdrawal of Full-Year Consolidated Earnings Forecast, Revision of Interim and Year-End Dividend Forecasts (No Interim Dividend, Year-End Dividend Undecided), and Reduction of Executive Compensation

Recording of Special Loss and Withdrawal of Earnings Forecast

Due to the system failure caused by a ransomware attack on October 19, 2025, a special loss of 5.216 billion yen was recorded in the consolidated financial results for the second quarter of the fiscal year ending May 2026. This includes costs related to maintaining logistics infrastructure, system investigation and recovery expenses, and valuation losses on expired shipment products. As a result of this impact, the temporary suspension of core services led to a significant decline in net sales and profits, making it difficult to reasonably estimate the full-year consolidated earnings forecast for the fiscal year ending May 2026. Therefore, the forecast published on July 4, 2025, was withdrawn.

Revision of Dividend Forecast and Reduction of Executive Compensation

In light of strengthening the financial base and investing capital for business recovery, the interim dividend has been set to zero, and the year-end dividend remains undecided. The interim dividend as of the record date of November 20, 2025, is 0 yen 00 sen, and the year-end dividend is currently undecided. Additionally, in response to the deterioration of earnings, it was decided to reduce the fixed monthly executive compensation by 20% from the payments in January through May 2026.