Notice Regarding Differences Between Interim Consolidated Earnings Forecasts and Actual Results and Revision of Full-Year Consolidated Earnings Forecast

Overview of Performance

This notice reports the differences between the consolidated earnings forecasts and actual results for the second quarter of the fiscal year ending March 2027, announced on May 15, 2026, and the revision of the full-year consolidated earnings forecast. Interim results fell short of plans due to increased consumer thriftiness amid rising prices and insufficient effectiveness of advertising measures, prompting a downward revision of the full-year forecast. The service suspension period caused by unauthorized external access to the Renta! server in October 2026 contributed to lost sales opportunities. Going forward, attention will be paid to demand recovery after service resumption and trends in cost of sales and selling, general and administrative expenses.

Outlook and Major Impacts

Full-year revenue is expected to be 12,446 million yen, operating income -500 million yen, ordinary income -437 million yen, and net income attributable to owners of parent -480 million yen, representing a significant downward revision from the previous forecast. The lack of recorded sales during the server suspension period and weakened consumer behavior are expected to impact performance. On the other hand, existing library viewing functionality has been resumed, and recovery of payment functions and others will be implemented sequentially. Expenses are expected to vary with the decline in revenue, and advertising expenses will be suppressed during the suspension period.