Notice Regarding Recognition of Impairment Loss (Consolidated) and Revision of Earnings Guidance

Regarding the Recognition of Impairment Loss

Rengo Co., Ltd. conducted an impairment test at its subsidiary TriCo Packaging & Logistics Co., Ltd. due to deteriorated profitability in the heavy cardboard business caused by weakness in the European automotive industry, resulting in business performance falling short of plans. As a result, impairment losses totaling 18,910 million yen were recognized as special losses relating to tangible fixed assets, goodwill, and intangible fixed assets. Going forward, efforts will be made to enhance corporate value by expanding supply to other industries such as chemicals, strengthening the sales structure, and reducing fixed costs through consolidation of unprofitable sites.

Revision of Full-Year Consolidated Earnings Guidance for the Fiscal Year Ending March 2026

The consolidated earnings guidance for the fiscal year ending March 2026 has been revised. Net sales remain unchanged at the initial forecast of 1,005,000 million yen. However, operating income and ordinary income are revised downward to 37,000 million yen (7.5% decrease from previous forecast), and net income attributable to owners of parent is revised downward to 21,000 million yen (12.5% decrease). The revisions reflect the recognition of impairment loss and provisioning for factory relocation costs. Dividend forecast remains unchanged.