Notice Regarding Recording of Special Loss and Revision of Full-Year Consolidated Earnings Forecast

Regarding the Recording of Special Loss

Loetze Corporation has decided to record a provisional special loss of 7,429 million yen (provision for litigation loss reserve) for the fiscal year ending February 2026 based on a jury verdict related to lawsuits involving the company and its US subsidiary. This amount is provisional based on currently available information and may change depending on the progress of future proceedings.

Revision of Full-Year Consolidated Earnings Forecast for the Fiscal Year Ending February 2026

Following the recording of the special loss, the full-year consolidated earnings forecast for the fiscal year ending February 2026, announced on April 11, 2025, has been revised. Net sales increased by 0.5% from the previous forecast of 128,190 million yen to 128,794 million yen; operating income rose by 2.7% from 30,345 million yen to 31,154 million yen; ordinary income increased by 6.5% from 30,618 million yen to 32,621 million yen. On the other hand, net income attributable to owners of parent was revised downward by 18.9% from 23,499 million yen to 19,049 million yen, and net income per share decreased from 133 yen 31 sen to 109 yen 34 sen. The dividend forecast remains unchanged at 17 yen.