Notice Regarding Recording of Extraordinary Loss and Revision of Full-Year Earnings Forecast

Revision of Earnings Forecast and Recording of Extraordinary Loss

Daicel Corporation anticipates recognizing an impairment loss of approximately 32 billion yen as an extraordinary loss due to reduced profitability for a new COC resin plant following a review of the business plan. Accordingly, the full-year consolidated earnings forecast for the fiscal year ending March 2026 has been revised downward from the previous forecast of net sales of 583,000 million yen to 576,000 million yen, operating income from 46,500 million yen to 41,000 million yen, and net income attributable to owners of parent from 50,000 million yen to 10,000 million yen.

Background of Revision and Future Outlook

The primary causes of the decline in net sales are delayed inventory adjustments by local manufacturers and plant troubles at the CO facility in the fourth quarter. Additionally, compensation related to the relocation of the engineering plastics business’s China factory has been deferred to the next fiscal year, impacting profit reduction. The startup of the new plant has been postponed from the fourth quarter of the fiscal year ending March 2027 to sometime during the fiscal year ending March 2028, with measures underway to enhance safety and quality. Exchange rates are assumed at 150 yen/US$ and 175 yen/EUR.