Notice Regarding Differences Between Consolidated Results for the Second Quarter (Interim) of the Fiscal Year Ending March 2027 and Previous Forecasts and Revision of Full-Year Consolidated Earnings Forecast

Significant Revision to Earnings Outlook

Second-quarter results this fiscal year fell short of prior forecasts due to a reassessment of price ranges and a decline in store traffic for core businesses such as Buddhist altars and accessories and memorial bone interment services, leading to a substantial deterioration in profitability. In particular, operating income decreased markedly and ordinary income is expected to turn negative. In response, the full-year forecast has been significantly lowered to net sales of 21,200 million yen, operating income of 300 million yen, ordinary income of 250 million yen, and net income attributable to owners of parent of 320 million yen. Pension asset valuation differences and similar items are not incorporated at this time, and there is no change to the dividend forecast.

Planned Actions and Impact on Shareholders

For the second half, the company plans to improve conversion rates and sales volume through expanded price range offerings and intensified promotions, but fully offsetting the first-half weakness is expected to be difficult. Cost controls on selling, general and administrative expenses and efficiency improvements in store operations will continue. The dividend is expected to be maintained at an annual 15 yen combining interim and year-end payments. Investors should closely monitor future performance trends in light of the differences between the previously announced revised forecast and actual results.