Notice Regarding Recognition of Impairment Loss and Equity-Method Investment Loss in Individual Financial Statements, and Differences Between Full-Year Consolidated Earnings Forecast and Actual Results for the Fiscal Year Ending March 2026

Overview of Impairment Loss Recognition and Earnings Differences

In the fiscal year ending March 2026, due to deteriorating order conditions in the overseas medical platform business and the impact of Middle East geopolitical conditions, an impairment test was conducted, resulting in a consolidated impairment loss of 22,957 million yen recorded as a special loss. The breakdown includes trademarks of 13,041 million yen and goodwill of 8,649 million yen, among others. Additionally, an equity-method investment loss of 29,667 million yen was recorded in the individual financial statements. Due to these factors, net sales were 64,735 million yen (4.2% decrease from prior forecast), operating income was 6,787 million yen (6.9% decrease), ordinary income was 8,721 million yen (7.9% decrease), and net income attributable to owners of the parent resulted in a significant deficit.

Outlook and Dividend Policy

Following the recognition of the impairment loss, amortization expenses on intangible fixed assets are expected to decrease by approximately 1.5 billion yen annually from the fiscal year ending March 2027 onward. The overseas business is under fundamental restructuring, including revisiting growth potential and profitability, as well as considering alliances and external capital utilization. However, since the impairment loss is a non-cash accounting charge, the dividend for the fiscal year ending March 2026 remains unchanged at 29.5 yen per share.