November 4, 2026 Notice Regarding Differences Between Actual Results and Fiscal Year Ending March 2027 Second Quarter Consolidated Earnings Forecast, Revision of Full-Year Consolidated Earnings Forecast, Recognition of Adjustment for Corporate Taxes and Dividend Forecast Revision

Performance Overview

The consolidated full-year earnings forecast for the fiscal year ending March 2027 has been comprehensively revised downward. Net sales are expected to decrease by 3,670 million yen from the previous forecast, and operating income, ordinary income, and net income attributable to owners of the parent are also expected to decline by approximately 1,500–2,500 million yen respectively. Second-quarter results fell short of prior forecasts due to weakened domestic market demand and reduced competitiveness in the U.S. market, and the reversal of deferred tax assets also had an impact. The dividend forecast has been revised to no dividend at year-end. The company will prioritize stabilizing its financial base and recovering cash-generation capability.

Shareholder Returns and Outlook

Given the deterioration in performance and the forecasted negative free cash flow, the company will prioritize securing liquidity and normalizing the financial base while maintaining its shareholder return policy. The timing of resuming dividends will be determined based on second-half recovery, reforms at the U.S. subsidiary, inventory optimization, and progress in selective and concentrated investments.