Notice Regarding Recording of Impairment Loss and Revision of Full-Year Earnings Guidance

Regarding the Recording of Impairment Loss

In the consolidated financial results for the fiscal year ending March 2026, some overseas subsidiaries experienced deteriorated profitability due to changes in the business environment, and indicators of impairment on fixed assets were identified. Consequently, an impairment loss of approximately 400 million yen is expected to be recorded. This impairment loss is a one-time item and will not have a continuing impact on performance from the following fiscal year onward.

Regarding the Revision of Earnings Guidance

The consolidated earnings guidance for the fiscal year ending March 2026 has been revised. Net sales are expected to increase to 62,000 million yen (up 1.3% from the previous forecast), while operating income is forecasted at 1,450 million yen (down 9.4%), ordinary income at 1,400 million yen (down 6.7%), and net income attributable to owners of the parent drastically declining to 50 million yen (down 92.9%). The main factors include the recording of the impairment loss, review of provisions and tax expenses, impact of sales trends in the automotive industry among major clients, and increased variable costs. The year-end dividend forecast remains unchanged at 53 yen.