Notice Regarding Revision of Consolidated and Non-consolidated Earnings Forecasts for the Second Quarter (Interim) of the Fiscal Year Ending March 2027

Summary of Revision

We have revised the consolidated earnings forecast for the second quarter of the fiscal year ending March 2027. While net sales are expected to remain at 27,400 million yen the same as the previous forecast, operating income is expected to decrease by 120 million yen, ordinary income by 140 million yen, and interim net income attributable to owners of parent is expected to decrease by 465 million yen to a loss of 65 million yen. Similar revisions were made on a non-consolidated basis. The primary causes are delays in the timing of sales of subsidy-eligible products in the construction consulting business, deterioration in the housing market environment, and the recording of impairment losses due to withdrawal from the Yesmart business. Although the full-year outlook anticipates improvement from expanded sales in the Rental and Clycra businesses, there is no change to the full-year forecast at this time due to the delayed recognition timing of subsidy-related product sales.

Outlook and Impact

The full-year performance is maintained based on expectations of recovery in the Rental and Clycra businesses and partial recognition of sales for subsidy-related products; however, the factors causing interim profit declines have materialized and the impact from withdrawal of the Yesmart business will persist. Effects on capital structure and cash flows have not been disclosed, but restructuring and reassessment of cost structure may be key to future earnings recovery.