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Performance Overview

In the fiscal year ending March 2026, the Company has determined that it is necessary to record allowances related to insolvency of consolidated subsidiaries and loan provisions, and plans to record 5,612 million yen as debt guarantee loss allowance and 3,319 million yen as bad debt allowance as extraordinary expenses. Additionally, the Company will record 8,090 million yen as impairment loss on fixed assets as a special loss, reflecting the asset valuation losses due to changes in the business environment. These charges will be offset in the consolidated financial statements and will not affect the final net income.

Outlook and Corporate Strategy

While promoting financial restructuring and business reorganization of consolidated subsidiaries, the Company is also strengthening asset valuation and risk management. The loss recognition in the fiscal year ending March 2026 is a proper accounting response to environmental changes and is part of its long-term value enhancement strategy. Although there may be short-term losses, the Company aims to build a foundation for future growth through financial soundness and enhanced risk control, reassuring investors of its long-term potential.