Notice Regarding Differences Between Consolidated Earnings Forecast and Actual Results for the Second Quarter (Interim) of the Fiscal Year Ending March 2027 and Revision of Full-Year Consolidated Earnings Forecast

Overview of Forecast Revision

Following second-quarter interim results for the fiscal year ending March 2027 falling below the previously announced forecast, we have revised the full-year consolidated earnings forecast. While net sales are assumed to remain flat, operating income, ordinary income, net income attributable to owners of parent, and net income per share are each expected to decline. This reflects decreased sales in the engineering business and profit compression due to rising costs (such as outsourcing expenses), elevated raw material and fuel prices, and increases in personnel expenses, as well as limited ability to pass these costs on to selling prices.

Outlook and Contributing Factors

Although the full-year outlook keeps net sales at 30,000 million yen, profits have been revised downward. The factors of rising raw material/fuel costs and personnel expenses are expected to persist, making price pass-through effectiveness and cost management crucial for improving profitability. Investors should monitor downside factors to profits and prospects for recovery.