Notice Regarding Differences Between Earnings Guidance and Actual Results

Overview of Performance

GENDA Corporation announced the differences between its consolidated earnings guidance and actual results for the fiscal year ending January 2026. Net sales were 170,787 million yen, an 8.8% increase compared to the previous forecast of 157,000 million yen. However, operating income decreased by 29.3% to 7,425 million yen against a forecast of 10,500 million yen. Ordinary income was 5,979 million yen compared to the forecast of 9,100 million yen, and net income attributable to owners of parent decreased to 3,655 million yen from the forecast of 5,000 million yen. These variances are primarily due to one-time M&A related expenses.

M&A Related Expenses and Future Outlook

As a result of 26 M&A transactions completed during the period, one-time expenses of approximately 1.74 billion yen at the operating income level, approximately 1.99 billion yen at the ordinary income level, and approximately 1.57 billion yen at the net income level were incurred. These expenses were not factored into the initial earnings guidance. Furthermore, the EBITDA forecast for the fiscal year ending January 2027 was revised upward from 28.0 billion yen at the third quarter to 30.0 billion yen. Going forward, earnings forecasts will be disclosed based on adjusted metrics excluding M&A-related expenses to minimize variance between forecast and actual results.