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Revision of earnings forecasts7794EDP CorporationInformation and Communications, Services and Others

Notice Regarding the Recognition of an Inventory Valuation Loss and the Difference Between the Full-Year Forecast and Actual Results for the Fiscal Year Ending March 2026

The full-year actual results for the fiscal year ending March 2026 were disclosed as a variance from the forecast announced on 12 February 2026. Although net sales exceeded the forecast, the consolidated operating loss and net loss attributable to owners of the parent were ¥435 million larger than forecast because an inventory valuation loss of ¥870 million was recorded.

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Direction
Mixed performance
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Scale
435
¥ million
Wording
Definitive
How definitive the wording is.

Revised forecast

Fiscal year ending March 2026 · Full yearPrevious forecast published 12 February 2026
Net SalesConsolidated500→516
+3.2%
Net SalesIndividual480→550
+14.6%
Operating profitConsolidated-925→-1,360
-47.0%
Operating profitIndividual—→—
—
Ordinary incomeConsolidated-910→-1,341
-47.4%
Ordinary incomeIndividual-780→-897
-15.0%
Profit attributable to owners of the parentConsolidated-1,980→-2,415
-22.0%
Profit attributable to owners of the parentIndividual-1,850→-2,540
-37.3%
Net income per shareConsolidated—→—
—
Net income per shareIndividual—→—
—

The bar length represents the relative magnitude of change, based on the item that changed the most in this document. The percentage change shown by the dotted line is calculated from the two reported figures because the company did not provide the rate.

Reason for the revision

In light of sluggish sales, merchandise (loose stones), materials, work in process, mother crystals and products (primarily rough stones) were revalued using the lower-of-cost-or-market method and taking current prices into account. As a result, the inventory valuation loss increased by a total of ¥435 million from the forecast.

Details and amount of extraordinary loss

Inventory valuation loss: ¥870 million (recorded in cost of sales)

Previous-period resultsConsolidated Net Sales 902 / Operating profit -976 / Ordinary income -989 / Profit attributable to owners of the parent -2,306 / Net income per share −¥171.38 / Individual Net Sales 989 / Ordinary income -873 / Net income for the current fiscal year -2,189 / Net income per share −¥162.72
Consolidated / non-consolidatedConsolidated / non-consolidated (standalone)
Revised forecast
ItemDetails
Net SalesConsolidated 500 / Individual 480 → Consolidated 516 / Individual 550(Consolidated 3.3% / Individual 14.7%)
Operating profitConsolidated -925 / Individual Not disclosed → Consolidated -1,360 / Individual Not disclosed
Ordinary incomeConsolidated -910 / Individual -780 → Consolidated -1,341 / Individual -897
Profit attributable to owners of the parentConsolidated -1,980 / Individual -1,850 → Consolidated -2,415 / Individual -2,540
Net income per shareConsolidated −¥136.00 / Individual −¥127.00 → Consolidated ¥(164.94) / Individual −¥173.47
Fiscal Period CoveredFiscal year ending March 2026
Period CoveredFull year
Publication date of previous forecast12 February 2026
Previous-period resultsConsolidated Net Sales 902 / Operating profit -976 / Ordinary income -989 / Profit attributable to owners of the parent -2,306 / Net income per share −¥171.38 / Individual Net Sales 989 / Ordinary income -873 / Net income for the current fiscal year -2,189 / Net income per share −¥162.72
Reason for the revisionIn light of sluggish sales, merchandise (loose stones), materials, work in process, mother crystals and products (primarily rough stones) were revalued using the lower-of-cost-or-market method and taking current prices into account. As a result, the inventory valuation loss increased by a total of ¥435 million from the forecast.
Details and amount of extraordinary lossInventory valuation loss: ¥870 million (recorded in cost of sales)
Consolidated / non-consolidatedConsolidated / non-consolidated (standalone)
Items this document does not state (1)
Dividend forecast revision

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In light of sluggish sales, the Company reassessed its inventory, including merchandise, materials, work in process, mother crystals and products, using the lower-of-cost-or-market method and taking current prices into account. As a result, the inventory valuation loss increased by a total of ¥435 million from the forecast.

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Notice Regarding the Recognition of an Inventory Valuation Loss and the Difference Between the Full-Year Forecast and Actual Results for the Fiscal Year Ending March 2026 | EDP Corporation (7794) timely disclosure | Komori