Notice Regarding the Recording of Extraordinary Loss, Revision of Earnings Guidance, and Reduction of Executive Compensation

Regarding the Recording of Extraordinary Loss

Sato Holdings Corporation has determined that it is no longer reasonable to continue the current plan due to delays in the development associated with the core system renewal and inherent processing issues stemming from the system package. As a result, impairment of fixed assets was performed, and the company decided to record an extraordinary loss of approximately 1.3 billion yen in the consolidated accounting period of the fourth quarter of the fiscal year ending March 2026. The scope includes outsourcing expenses, internal personnel costs, and related license fees.

Revision of Earnings Guidance and Reduction of Executive Compensation

In the consolidated earnings forecast for the fiscal year ending March 2026, the net income attributable to owners of parent was revised downward by 1 billion yen from 6.8 billion yen to 5.8 billion yen due to the impact of the extraordinary loss. There are no changes to the forecasts for net sales, operating income, or ordinary income. The dividend forecast remains unchanged, maintaining a year-end dividend of 38 yen per share. Additionally, to clarify management responsibility, it was decided to reduce the monthly compensation of the Representative Director, President & Group CEO and the Director, Senior Executive Vice President by 20% for the three months from April to June 2026.