Notice Regarding Recording of Impairment Loss, Revision of Full-Year Consolidated Earnings Guidance, and Voluntary Partial Surrender of Executive Compensation

Recording of Impairment Loss and Revision of Earnings Guidance

Due to the termination of the contract manufacturing business for lithium-ion battery cathode materials, it was resolved to record an impairment loss of 431 million yen on fixed assets as an extraordinary loss. Consequently, the full-year consolidated earnings guidance for the fiscal year ending March 2026 was revised upward to net sales of 27,890 million yen (6.5% increase from previous forecast), operating income of 3,340 million yen (24.6% increase), and ordinary income of 3,760 million yen (21.3% increase). On the other hand, the impact of recording the impairment loss led to a downward revision of net income attributable to owners of parent to 2,180 million yen (1.8% decrease).

Voluntary Surrender of Executive Compensation and Future Outlook

Acknowledging the burden on employees due to business termination and the occurrence of impairment losses, it was resolved that four executives including the Representative Director and President will voluntarily surrender a portion of their monthly compensation for a three-month period from April to June 2026. The impact on consolidated earnings from the fiscal year ending March 2027 onwards is currently under review and will be disclosed again around May. There is no change to the shareholder return policy.