Notice Regarding Recording of Construction Loss Allowance

Details of Recording Construction Loss Allowance

In the consolidated financial statements for the fiscal year ending in March 2026, the Company recorded a construction loss allowance based on the best estimates for response costs and subcontracting expenses required to resume the project due to serious accidents occurring during the "Ogijima Guidance Area Raw Material A & B Berth Publicization Demolition Construction". Additionally, rising costs of materials and labor for overseas projects are also expected to increase costs until project completion. Based on these factors, a construction loss allowance of 6,512 million yen was recorded as cost of sales.

Impact on Business Performance

The recording of the construction loss allowance is reflected in the financial summary (consolidated, Japanese standards) for the fiscal year ending in March 2026, and has impacted business results. However, specific figures on the impact on profit or changes compared to the same period last year are not detailed in the materials.