Notice Regarding Revision of Full-Year Earnings Forecast and Recording of Extraordinary Loss (Consolidated and Non-Consolidated)

Summary of Earnings Forecast Revisions

The consolidated earnings forecast for the fiscal year ending March 2026 has been revised to net sales of JPY 1,180,000 million (down 2.6% from the previous forecast), operating income of JPY 98,000 million (up 6.5%), ordinary income of JPY 152,000 million (up 27.7%), and net income attributable to owners of parent of JPY 66,000 million (down 25.8%). The non-consolidated earnings forecast has also been revised to net sales of JPY 826,000 million (down 4.4%), operating income of JPY 29,000 million (up 7.4%), ordinary income of JPY 101,000 million (down 18.5%), and net income of JPY 48,000 million (down 59.0%).

Reasons for Recording Extraordinary Loss and Shareholder Return Policy

Due to increased construction costs and market downturn in the project of consolidated subsidiary Genex Power Pty Ltd, an impairment loss of approximately JPY 23 billion is expected, and a valuation loss on equity investments in affiliated companies of about JPY 28 billion is anticipated on a non-consolidated basis. Additionally, a fixed asset retirement loss of approximately JPY 18.5 billion from disposal of measurement and control equipment at the Oma Nuclear Power Plant, an impairment loss of about JPY 5 billion due to the decision to decommission the Takasago Thermal Power Station, and an impairment loss of approximately JPY 4 billion from cancellation of the onshore wind power project will be recorded. Consequently, extraordinary losses are expected to total approximately JPY 54 billion consolidated and approximately JPY 52 billion non-consolidated. The shareholder return policy will be maintained, with the dividend forecast holding steady at the floor dividend of JPY 100 per share.