Notice Regarding Recording of Special Loss and Differences Between Full-Year Consolidated Earnings Guidance and Actual Results

Overview of Business Performance

In the fiscal year ending January 2026, the slow growth of the electric vehicle (BEV) market in Europe led to an expected profitability decline at consolidated subsidiary Mitsui High-tec (Europe) Espeso. Accordingly, special losses of 3,951 million yen due to impairment loss on manufacturing equipment and 2,591 million yen due to European business losses were recorded. Additionally, a loss on valuation of investment in associates amounting to 6,025 million yen was recorded in the individual financial statements but was eliminated in the consolidated financial statements and had no impact. Net sales exceeded the previous forecast at 218,329 million yen (+1.1%), operating income was 12,651 million yen (+15.0%), and ordinary income was 13,815 million yen (+38.2%).

Net Income Attributable to Owners of Parent and Impact

Due to the recording of special losses, net income attributable to owners of parent was 3,151 million yen, falling 55.0% below the previous forecast. Although strong orders in the electronic components business, expense control, and foreign exchange gains contributed to net sales, operating income, and ordinary income exceeding forecasts, the impact of special losses heavily pressured net income. This matter has been reflected in the financial summary for the fiscal year ending January 2026.