Notice Regarding Recording of Extraordinary Loss (Impairment Loss) and Revision of Earnings Guidance

Regarding the Recording of Impairment Loss

Due to changes in consumer preferences caused by rising prices in the United States, sales of high-priced PBF products in the US soybean business have struggled, resulting in decreased profitability. In response, the consolidated subsidiary House Foods Holdings USA reviewed the business plan of Keystone Natural Holdings and canceled the plan to establish a new factory in Kentucky, USA. As a result of these reviews, an impairment loss of approximately JPY 6.9 billion will be recorded as an extraordinary loss. The main losses consist of customer-related assets, goodwill, and tangible fixed assets of approximately JPY 5.9 billion, and construction in progress of approximately JPY 1.0 billion.

Revision of Consolidated Earnings Guidance for the Fiscal Year Ending March 2026

Net sales have been revised downward to JPY 316,500 million (1.6% decrease from the previous forecast), operating income to JPY 17,500 million (7.9% decrease), ordinary income to JPY 18,700 million (7.9% decrease), and net income attributable to owners of parent to JPY 7,800 million (40.0% decrease). The significant decline in net income is due to the impact of recording the impairment loss. There is no change to the dividend forecast. Going forward, the company will aim to restore profitability through reviewing its sales strategy and improving productivity.