Notice of Revision to Full-Year Earnings Guidance

Revision of Earnings Outlook

We have revised upward the consolidated earnings guidance for the fiscal year ending March 2027. Revenue is expected to be 71,000 million yen (up 1.4% from the previous forecast), operating income 17,500 million yen (up 1.7%), and profit before tax 17,229 million yen (up 1.7%). Prior-year results were revenue of 58,682 million yen, operating income of 14,420 million yen, net income attributable to owners of parent of 10,538 million yen, and earnings per share of 46.42 yen. We will continue the investment phase of the Mid-term Plan 2030 - Vision1000 and strengthen growth investments such as AI in the second half, and gross profit increases are expected to exceed the rise in expenses.

Background and Impact

The full-year forecast was revised upward because first-half sales and profits reached record highs and order conditions remain favorable for the second half. However, the interim profit attributable to owners of parent was slightly affected because the tax nondeductibility impact related to the shareholder benefits program introduced in the first half was lower than initially expected. For the full year, the downside and the expected profit increase in the second half offset each other, so the forecast for net income attributable to owners of parent remains unchanged.