Notice Regarding Extraordinary Loss Recording and Revision of Earnings Guidance

Regarding the Recording of Extraordinary Losses

The Company plans to record a total extraordinary loss of 7.6 billion yen in the fourth quarter of the fiscal year ending March 2026, consisting of an impairment loss on equity securities of affiliated company Sigma, its wholly owned subsidiary in Vietnam, of 4.7 billion yen, a one-time goodwill amortization of 2.0 billion yen, and impairment losses of 0.9 billion yen on customer-related assets and business assets. The main causes are deterioration of the business environment, impacts from the COVID-19 pandemic, and stagnation in the wind power generation market.

Regarding the Revision of Earnings Guidance

The consolidated earnings guidance for the fiscal year ending March 2026 has been revised to net sales of 254.0 billion yen (down 4.9% from the previous forecast), operating income of 18.0 billion yen (up 7.8%), ordinary income of 18.5 billion yen (up 5.7%), and net income attributable to owners of parent of 10.0 billion yen (down 18.0%). The decline in net sales is due to delays in progress of large-scale construction projects and postponed orders from overseas subsidiaries, while profitability is expected to improve through thorough cost management. The dividend forecast remains unchanged at 72 yen per share annually.