Notice on the Recognition of Non-operating Income, Extraordinary Gains and Losses

Impact on performance and disclosure details

Key points regarding the recognition of non-operating income and extraordinary gains and losses in the consolidated and Japanese GAAP first quarter earnings summary for the fiscal year ending February 2027 have been prepared. Domestic currency foreign exchange gains amount to 317,527 thousand yen, overseas gains to 229,849 thousand yen (breakdown: ASEAN 240,142 thousand yen; China －10,292 thousand yen), and the consolidated non-operating income to be recorded is 547,377 thousand yen. In standalone results, extraordinary gains include the reversal of allowance for losses related to affiliated companies’ businesses (318,762 thousand yen). Conversely, standalone extraordinary losses include the provision for bad debts related to affiliated companies (1,186,755 thousand yen). These items are stated as not affecting the consolidated results. FX rate information is disclosed as well.

Future disclosure and financial impact

The above non-operating income, extraordinary gains and losses are expected to be reflected in the first quarter earnings summary for the fiscal year ending February 2027. There is no impact on the consolidated results, and they will be presented in an integrated manner at the time of the earnings summary release. Ongoing FX fluctuations may continue to generate non-operating income, so attention should be paid to trends by segment in the future.