Notice Regarding Differences Between Full-Year Consolidated Earnings Forecast and Actual Results for the Fiscal Year Ending September 2026, and Recording of Special Loss (Impairment Loss)

Overview of Earnings Differences

In the cumulative consolidated period for the fiscal year ending September 2026, net sales and profit indicators fell short of the previous forecast, with particularly large variances in operating income (loss), ordinary income (loss), and net income attributable to owners of parent. The main causes were higher cost ratios in domestic operations and the review of unprofitable stores, increased costs for new overseas stores and delays in optimizing staffing in overseas operations. For overseas subsidiaries, the impact of the group tax system also resulted in after-tax net income falling below expectations.

Recording of Special Loss and Future Impact

In accordance with accounting standards for impairment of fixed assets, the Company recorded a special loss of 46 million yen in the fiscal year ending September 2026, including an impairment loss of 42 million yen. The future impact on earnings is Unknown based on the information provided, but the impairment may continue to be a factor in profit deterioration going forward.