Notice Regarding Differences Between Consolidated and Non-consolidated Results and Prior Fiscal Year Results

Overview of Results

Consolidated results for the fiscal year ended August 2026 deteriorated significantly compared with the fiscal year ended August 2025. Although revenue increased year-on-year, selling, general and administrative expenses increased and crypto asset valuation losses were recognized, causing sharp declines in operating income, ordinary income and net income. Special losses include business restructuring losses and revaluation of asset retirement obligations, resulting in a substantial net loss. On a non-consolidated basis, revenue decreased and ordinary income and net income also worsened. The causes include structural changes associated with the transition to a holding company structure, the company split and a trade name change.

Future Impact and Key Points

Changes in the revenue mix and reorganization of the cost structure are expected to continue to have an impact. The apparel business will be operated by the newly established company ANAP, and while SG&A decreased with the transition to a holding company, financial impacts such as the recording of allowance for doubtful accounts occurred. Future recovery will depend on how effectively the effects of business restructuring materialize and how crypto asset-related costs fluctuate.