Notice Regarding Impairment Loss on Goodwill and Other Non-Financial Assets in Consolidated Financial Statements, Impairment Loss on Fixed Assets and Valuation Loss on Affiliate Shares in Separate Financial Statements

Regarding Recognition of Impairment Loss

Nikon Corporation recorded an impairment loss on non-financial assets of 90,627 million yen in the consolidated financial statements in the third quarter of the fiscal year ending March 2026, anticipating a decrease in future cash flows in the Digital Manufacturing business due to the slowdown in growth and intensifying competition in the metal 3D printing market. The main breakdown includes an impairment loss on goodwill of 60,568 million yen and identifiable intangible assets of 26,244 million yen at the consolidated subsidiary Nikon SLM Solutions AG (SLM). In addition, a total impairment loss of 3,815 million yen was recorded on fixed assets of the parent company and subsidiaries NAMS and NAMI.

Recognition of Extraordinary Losses in Separate Financial Statements and Impact on Consolidated Performance

In the separate financial statements (Japanese GAAP), an impairment loss on fixed assets of 3,176 million yen related to the same business and a valuation loss on affiliate shares (shares of SLM subsidiary) of 84,410 million yen were recorded as extraordinary losses. However, the valuation loss on affiliate shares is eliminated in the consolidated financial statements, so there is no direct impact on consolidated performance. For the impact on consolidated performance, please refer to the separately announced 'Notice Regarding Revision of Consolidated Earnings Forecast, Dividend Forecast, and Reduction of Executive Compensation for the Fiscal Year Ending March 2026.'