Notice Regarding Recording of Other Expenses (Consolidated Financial Statements), Non-Operating Expenses and Extraordinary Losses (Non-Consolidated Financial Statements), and Revision of Earnings Guidance

Regarding the Recording of Other Expenses and Extraordinary Losses

In the consolidated financial statements for the fiscal year ending March 2026, a loss of 24.4 billion yen (other expenses) related to the transfer of the European automotive business is expected to be recorded. Additionally, in the non-consolidated financial statements, an allowance for doubtful accounts of 28.6 billion yen (non-operating expenses) is anticipated due to the financial deterioration of European subsidiaries, along with extraordinary losses of 32.2 billion yen related to the transfer. These items pertain to the transfer of the European automotive business and are expected to have a limited impact on the consolidated financial results.

Regarding the Revision of Earnings Guidance

The full-year consolidated earnings guidance for the fiscal year ending March 2026 has been revised: revenue remains unchanged at 1.88 trillion yen, and operating profit has been upwardly revised to 680 billion yen (a 4.6% increase from the previous forecast). Conversely, operating income is significantly revised downward to 220 billion yen (a 60.0% decrease from the previous forecast), ordinary income to 220 billion yen (a 60.0% decrease), and net income attributable to owners of parent to 100 billion yen (a 60.0% decrease). These revisions reflect losses related to the transfer of the European automotive business and expenses associated with business structure reforms.