Notice of Full-Year 2026 Earnings Forecast and Actual Results Discrepancy

Overview of Business Performance

The consolidated performance for the fiscal year ending March 2026 showed net sales exceeding expectations at 879,462 million yen, while operating income at 28,817 million yen fell short. Increased sales driven by rising selling prices and a weaker yen were offset by sluggish sales volume and lower asset utilization, which squeezed profit margins. The recording of impairment losses on goodwill in the fourth quarter also impacted results, but the recognition of deferred tax assets in the UK led to net income exceeding forecasts.

Forecasts and Impact on Shareholders

Although current results demonstrate increased sales and a significant improvement in net income, challenges such as sluggish profit growth and sales efficiency remain evident. The company plans to revise sales strategies and strengthen cost management to enhance profitability. For shareholders, improvements in profit and dividend stability are expected, but attention should be paid to factors causing profit fluctuations.