Notice Regarding Recording of Deferred Tax Assets (Consolidated and Non-Consolidated), Recording of Impairment Loss on Shares of Affiliates (Non-Consolidated) Forecast, Recognition of Gain on Sale of Shares of Affiliates (Consolidated) Forecast for Next Fiscal Year, and Revision of Earnings and Dividend Forecasts

Overview of Earnings Forecast and Recognition of Deferred Tax Assets

Due to the planned transfer of equity interests in consolidated subsidiaries, the Company expects to record deferred tax assets and corporate tax adjustment of 3,766 million yen for both consolidated and non-consolidated financial statements for the fiscal year ending March 2026. Additionally, an impairment loss on shares of affiliates of approximately 1,000 million yen is expected to be recorded in the non-consolidated financial statements. Consequently, gains and losses on the equity transfer are expected to be minimal. For the fiscal year ending March 2027, a gain on sale of shares of affiliates of approximately 2,000 million yen is expected to be recognized on a consolidated basis.

Details of Revision to Earnings and Dividend Forecasts

For the fiscal year ending March 2026, the consolidated earnings forecast maintains net sales at 199,000 million yen, operating income at 11,600 million yen, and ordinary income at 17,000 million yen. Meanwhile, net income attributable to owners of parent is revised upward by 48.7%, from 11,500 million yen to 17,000 million yen. The non-consolidated net income forecast is increased by 117.0%, from 11,200 million yen to 24,000 million yen. The dividend forecast is also revised upward, with the year-end dividend raised from 60 yen to 89 yen, resulting in an increase in annual dividends. These revisions reflect the recognition of deferred tax assets and anticipated gain on shares sale.