Notice of Recording of Extraordinary Loss and Revision of Full-Year Consolidated Earnings Forecast

Regarding Recording of Extraordinary Loss

The Company has acquired additional shares of ZENIT INTERNATIONAL S.P.A. (hereinafter 'ZENIT') and became a wholly owned subsidiary. As part of the medium-term management plan 'Transformation 2027', efforts were made to generate synergies through technological and business alliances and product sales, but due to prolonged conflict in Ukraine and a slowdown in the Chinese market, securing profits has become challenging. Accordingly, an impairment loss of 3,117 million yen related to goodwill and 899 million yen related to customer-related assets for ZENIT will be recognized, totaling 4,017 million yen as a special loss.

Reason for Revision of Full-Year Earnings Forecast

Revenue is expected to exceed the previous forecast owing to robust demand in domestic and international equipment markets and heightened attention to the high efficiency and foreign object passing performance of Smash Pumps. Ordinary income is also anticipated to surpass the previous forecast due to factors such as yen depreciation and favorable exchange rates. However, net income attributable to owners of the parent is expected to fall short of the previous forecast owing to impairment losses related to ZENIT. Additionally, a 2-for-1 stock split was implemented on October 1, 2025, and earnings per share are calculated considering the split.