Notice Regarding Recognition of Extraordinary Losses (Impairment Loss on Available-for-Sale Securities and Impairment Loss on Shares of Affiliated Companies)

Extraordinary Losses Related to Financial Results and Their Impact

The Company recognized extraordinary losses in both consolidated and non-consolidated financial statements for the fiscal year ending September 2026. An impairment loss on available-for-sale securities of 19 million yen and an impairment loss on shares of affiliated companies of 66 million yen were recorded. Only the impairment loss on available-for-sale securities affects consolidated results; the impairment loss on shares of affiliated companies is eliminated in consolidation. Final figures will be disclosed in the earnings report when published.

Outlook and Policy Going Forward

These impairment estimates are based on financial figures as of the end of August 2026 and will be finalized in the financial summary scheduled for publication on 2026-11-13. The impairment relates to the deteriorated financial condition of SD Malaysia, the Malaysia-based group entity, but there is no change to the Group's business policy, and efforts to improve profitability will continue. Any additional disclosures will be made promptly.