Notice Regarding Extraordinary Income, Deferred Tax Assets Recording, Differences Between Full-Year Consolidated Earnings Forecast and Actual Results, and Dividend from Surplus

Overview of Business Performance

In the fourth quarter of the fiscal year ending February 2026, due to the recovery of subsidiary Ringer Hut Japan's performance, an extraordinary income of 1,405 million yen was recorded as reversal of allowance for doubtful accounts from affiliates; however, this was offset and eliminated in consolidation with no impact. Additionally, recoverability of deferred tax assets was reviewed, resulting in a corporate tax adjustment of -597 million yen. The full-year consolidated results were net sales of 45,084 million yen (1.5% decrease from previous forecast), operating income of 1,418 million yen (28.7% decrease), and net income attributable to owners of parent of 1,727 million yen (40.4% increase). Net sales fell short of plan due to a reaction to prior media exposure effects, and operating income and ordinary income were also below forecasts, but net income exceeded expectations due to tax adjustments.

Overview and Policy on Dividends

The year-end dividend, with a record date of February 28, 2026, was decided at 7 yen per share as previously forecasted. The total annual dividend, including the interim dividend of 6 yen, will be 13 yen. The source of dividends is retained earnings. Since the increase in net income due to corporate tax adjustments is a temporary factor, dividends are considered based on the actual profit level. The basic policy is stable profit return, and the dividend is scheduled to be implemented following a resolution at the annual general shareholders meeting on May 27, 2026.