Notice Regarding Revision of Earnings Guidance

Details of Earnings Guidance Revision

The consolidated earnings guidance for the fiscal year ending March 2026 has been revised. Net sales were downwardly adjusted by 3,672 million yen to 33,601 million yen due to delayed startup of the first data center project in Japan and Australia. However, this sales decline was partially offset by significantly higher-than-expected volume of services provided under additional contracts for AI data center services. Operating income was upwardly revised by 137 million yen to 3,635 million yen, reflecting non-incurrence of stock compensation expenses of 818 million yen and reduced interest expenses on borrowings. Adjusted EBITDA decreased substantially due to the omission of depreciation expenses and stock compensation costs.

Reasons for Revision and Future Outlook

Geopolitical risks and equipment delivery delays caused by the AI data center construction rush are the main factors, with the domestic first project’s startup pushed back from May to July 2026, and the Australian first project delayed from June to August. As a result, revenue recognition for the fiscal year ending March 2026 was postponed; however, the strong demand for additional contracted usage increased service volume. Fit-Out construction is largely complete, and outstanding balances for GPU server purchases have been disclosed. Going forward, revenue recognition is expected after startup.