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 the Full-Year Consolidated Earnings Forecast for the Fiscal Year Ending March 2027

Performance Overview

The second quarter results exceeded prior forecasts primarily due to increased shipment volumes in the Automotive & Industrial Machinery Components segment and a temporary profit increase resulting from changes in the method of reflecting raw material costs in selling prices. As a result, while net sales were below the previous forecast, operating income, ordinary income, interim net income attributable to owners of parent, and interim net income per share significantly exceeded forecasts. The full-year forecast was also revised upward, taking into account the temporary effects from the change in raw material cost reflection and the rise in energy costs.

Outlook and Impact on Shareholders

The full-year forecast has been generally revised upward, with substantial improvements expected in profit indicators. Although risks remain from fluctuations in energy costs and treatment of raw material prices, recovery in segment shipment volumes and improvements in cost management suggest continued growth potential. Investors should understand the profit-upward outlook and the temporary effects of cost reflections, and monitor these factors as they may influence share price movements.