Notice Regarding Recognition of Extraordinary Loss (Impairment Loss) and Revision of Earnings Forecast

Revision of Earnings Forecast and Recognition of Impairment

This report announces the recognition of an extraordinary loss (impairment loss) of 273 million yen in the second quarter of the fiscal year ending March 2027, and a simultaneous revision of the full-year earnings forecast. Net sales have been revised downward to 8,200 million yen. Operating income and ordinary income are each expected to be -660 million yen, and net income attributable to owners of parent is expected to be -950 million yen. Key assumptions include deteriorating profitability in the FC business, delays in promotional plans by clients, and delays in acquiring new clients, which together have led to a significant downward revision of profit forecasts.

Future Measures and Corporate Governance Reform

The company will advance a management restructuring project, enforce strict profitability control of the FC business, review terms of unprofitable transactions, and optimize fixed costs. Additionally, it will optimize IT and operational systems and review outsourced service costs. Efforts will be made to expand transactions with existing clients and acquire new clients, strengthen provision of integrated logistics services, and improve profitability. On the financial side, the company will enhance cash management and budget control and will verify and evaluate the effects of profit-improvement initiatives.