Notice of Revision to Earnings Forecast of Consolidated Subsidiary (KNT-CT Holdings Co.,Ltd.)

Overview of Forecast Revision

Consolidated subsidiary KNT-CT Holdings has downwardly revised its consolidated earnings forecast for the fiscal year ending March 2027. Net sales are down by △5,000 hundred million yen from the previous forecast, operating income is down by △1,200 hundred million yen, ordinary income is down by △800 hundred million yen, net income attributable to owners of parent is down by △1,000 hundred million yen, and earnings per share are expected to be 172.86 yen. The decrease rates from the previous forecast are approximately -1.6% for net sales, -19.4% for operating income, -11.4% for ordinary income, and -16.7% for net income.

Reasons for Revision and Impact

The main factors for the revision include prolonged conditions in the Middle East, weak domestic travel and decreased inbound demand due to deterioration in Japan-China relations, and increased costs associated with the planned business restructuring merging four companies effective April 1, 2027. The Company states there is no impact on the Group's consolidated full-year earnings forecast.