Notice Regarding Recognition of Special Loss (Impairment Loss) and Revision of Full-Year Consolidated Earnings Forecast

Overview of Earnings Forecast Revision

The Company anticipates recording an impairment loss on certain fixed assets in the fourth quarter of the fiscal year ending March 2026 and has revised the full-year consolidated earnings forecast published on May 12, 2025. Net sales are revised down 3.9% from the previous forecast to 208,000 million yen, operating income is revised up 6.5% to 16,500 million yen, and ordinary income is revised up 4.2% to 12,500 million yen. On the other hand, net income attributable to owners of parent is revised downward 43.8% to 4,500 million yen.

Reasons for the Revision and Future Strategy

The core newly built condominium sales business remains robust, with operating income expected to reach a record high. However, the recording of an impairment loss of 3,300 million yen related to the 'Nobeoka Biomass Power Plant' in the energy business significantly reduces net income. Contributing factors include rising interest rates, soaring fuel prices, regulatory constraints, and increased construction costs. Going forward, the Company will strengthen ROIC management, focus management resources on highly profitable and growing sectors, and aim to diversify and fortify its earnings base.