Notice Regarding Recording of Extraordinary Loss and Income Tax Adjustment (Benefit) and Revision of Consolidated Earnings Forecast for the Fiscal Year Ending October 2026 (Interim and Full Year)

Details of Earnings Forecast Revision

With the commencement of bankruptcy rehabilitation proceedings of the UK subsidiary NATIONAL CAR PARKS LIMITED, a resolution was made to restructure the UK business, and an extraordinary loss of 25,000 million yen will be recorded based on the cumulative investment amount excluding prior year losses. Additionally, an estimated extraordinary loss of approximately 3,000 million yen is expected from a review of overseas parking lot operations. Consequently, the interim consolidated earnings forecast for Q2 FY2026/10 has been revised to net sales down 4.7% to 201,500 million yen and an interim net loss attributable to owners of the parent of 19,000 million yen. On the other hand, due to the recognition of an income tax adjustment benefit of 30,000 million yen, the full-year net income attributable to owners of the parent is expected to increase from 24,000 million yen to 26,000 million yen.

Outlook and Dividend Forecast

Although full-year net sales are expected to decline, net income is projected to increase due to recording of income tax adjustment benefit. The annual dividend forecast remains unchanged at 65 yen per share as announced on December 15, 2025. This UK business restructuring involves short-term earnings deterioration due to the extraordinary loss but is anticipated to have a positive impact on full-year earnings through tax benefits. Investors should pay close attention to the balance between the extraordinary loss impact and income tax adjustment benefits.