Notice Regarding Recording of Special Loss (Impairment Loss) and Revision of Full-Year Earnings Forecast

Regarding Recording of Special Loss

Due to the surge in raw material prices and increasing consumer cost-saving behavior in the domestic beverage business, profitability in the vending machine channel has declined with expected operating losses. As a result, the book value of business-related assets has been reduced to the recoverable amount, and an impairment loss of 29,826 million yen will be recorded in the fourth quarter. In the individual financial statements, DyDo Drinco, Inc., a consolidated subsidiary, will record a stock valuation loss of 466 million yen and allowance for doubtful accounts of 26,169 million yen; however, these are eliminated in the consolidated financial statements and have no impact.

Reason and Overview of Revision to Full-Year Consolidated Earnings Forecast for Fiscal Year Ending January 2026

Although the domestic beverage business continues to face a severe environment due to soaring raw material costs and strong consumer cost-saving tendencies, the overseas beverage business (mainly Turkey) has outperformed expectations, offsetting the domestic decline. Operating income and ordinary income are expected to exceed original forecasts. However, the recording of the impairment loss significantly downwardly revises the net income attributable to owners of parent, with a net loss of 30,700 million yen projected for the full year.