Notice Regarding Differences Between Interim Results and Forecasts for the Fiscal Year Ending March 2027 and Revision to Full-Year Earnings Forecast

Overview of Performance

This report discloses variances between actual results for the consolidated interim period of the fiscal year ending March 2027 and the interim forecasts published in May 2026, and revises the full-year earnings forecast. Interim net sales fell short of the prior forecast, while operating income and ordinary income exceeded the prior forecast due to unutilized selling expenses and other factors. Conversely, interim net income attributable to owners of parent declined significantly due to special losses and a business transfer loss associated with the succession of the generic drug business. For the full year, revisions incorporate recognition of an upfront payment related to the license agreement for the ARDS treatment candidate "EB05" and amounts related to licensed-in products.

Outlook and Impact

Full-year earnings forecasts have been revised downward for operating income, ordinary income, and net income. In particular, net income has been revised to -5,100 million yen, which may affect shareholder returns and capital policy. The recognition of upfront license payments and the impact of special losses could influence future revenue structure; we will continue to monitor progress in discussions with counterparties and market conditions.