Notice of Difference Between Consolidated Earnings Forecast and Actual Results for the Second Quarter (Interim) of the Fiscal Year Ending March 2027 and Revision of Full-Year Consolidated Earnings Forecast

Variance in Results and Revision of Full-Year Forecast

This report indicates the divergence between the second quarter (interim) results for the period April 1, 2026 to September 30, 2026 and the previously announced forecast. Net sales were roughly at the prior forecast level; however, increased recruitment expenses due to vigorous hiring activities, soaring fuel and material prices driven by Middle East conditions, and higher compensation-related expenses associated with rising stock prices caused operating income, ordinary income, and net income attributable to owners of the parent to fall considerably short of expectations. In response, the company has revised its full-year consolidated earnings forecast.

Outlook and Impact Factors

The full-year forecast has been revised based on assumptions including higher fuel prices and elevated recruitment expenses. In addition to the first-half impact, cost increases beyond expectations are expected to pressure profits. For investors, trends in cost of goods, labor costs, and compensation-related expenses will be key to performance. Future disclosures on fuel and raw material trends, measures to restrain recruitment expenses, and the stability of demand will be points of focus.