Notice Regarding Differences Between Full-Year Consolidated Earnings Forecast and Actual Results and Differences from Previous Period’s Individual Performance

Overview of Performance

For the fiscal year ending March 2026, consolidated net sales reached 2,037,063 million yen, a 2.9% increase over the previous forecast; however, operating income declined 28.1% to 53,948 million yen, and net income attributable to owners of parent decreased 48.3% to 23,271 million yen. The main causes of the profit decline were recording quality-related expenses and impairment of fixed assets in the North, Central, and South American regions. On the other hand, individual performance showed a 4.6% increase in net sales compared to the previous period but a decrease in operating income. Ordinary income and net income rose 5.3% and 14.8%, respectively, reflecting a reduction in corporate tax burdens and increased dividend income from subsidiaries.

Outlook and Impact

While the recording of quality-related expenses and fixed asset impairment impacted earnings, net sales have increased partly due to foreign exchange effects. Individual results benefited from higher sales driven by new product effects, with increases in ordinary income and net income confirmed. Going forward, attention is needed on how quality issues are addressed and the asset status by region.