[Alpha] Disclosure Correction for FY2027 Full-Year Consolidated Earnings Forecast and Analysis of Key Metrics

Alpha Co., Ltd. (TSE Standard: 3434) has issued a timely disclosure regarding a correction to certain information contained in the "FY2027 Q1 Financial Results Presentation Materials" released on August 26, 2026.

Based on this disclosure, we provide a detailed breakdown and analysis of the specific corrections and the key figures and KPIs for the company's full-year consolidated earnings forecast for the fiscal year ending March 2027.

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1. Overview of the Disclosure Correction

This timely disclosure corrects a clerical error in the "Consolidated Earnings Forecast (Comparison with Previous Fiscal Year)" section on page 12 of the financial results presentation materials.

• Correction Location : Financial Results Presentation Materials, page 12, "(1) Consolidated Earnings Forecast (Comparison with Previous Fiscal Year)"
• Before Correction : Quarterly Net Income attributable to owners of the parent
• After Correction : Net Income attributable to owners of the parent

This is a formal correction to align the terminology in the full-year forecast table from "Quarterly Net Income" to "Net Income." There are no changes to the actual figures for Net Sales, Operating Income, Ordinary Income, or Net Income.

The slide content before and after the correction is as follows:

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2. Highlights of the FY2027 Full-Year Consolidated Earnings Forecast

The following table compares the consolidated earnings forecast for the fiscal year ending March 2027 (as stated on the corrected page 12) with the actual results from the previous fiscal year (ended March 2026).

Item	FY2026 Full-Year Actual	FY2027 Full-Year Forecast	YoY Change	YoY Growth Rate
Net Sales	72,699 million JPY	73,000 million JPY	+301 million JPY	+0.4%
Operating Income	843 million JPY	1,500 million JPY	+657 million JPY	+77.9%
Operating Margin	1.2%	2.1%	+0.9pt	-
Ordinary Income	1,618 million JPY	1,300 million JPY	△318 million JPY	△19.7%
Net Income Attributable to Owners of Parent	1,383 million JPY	1,000 million JPY	△383 million JPY	△27.7%

Key Points

1. Net Sales Projected to Remain Flat with Slight Growth Full-year net sales are projected at 73,000 million JPY, representing a slight increase of +0.4% (+301 million JPY) year-on-year, indicating a largely flat trajectory.

2. Significant Projected Increase in Operating Income (+77.9%) Despite the marginal growth in net sales, the company forecasts a substantial increase in operating income—a key indicator of core profitability—from 843 million JPY in the previous year to 1,500 million JPY, a +77.9% (+657 million JPY) surge . Consequently, the operating margin is expected to improve from 1.2% in the previous year to 2.1% (+0.9 percentage point improvement) .

3. Factors Behind Declines in Ordinary and Net Income While operating income is expected to grow significantly, ordinary income is forecast to decline by 19.7% YoY (1,300 million JPY), and net income attributable to owners of the parent is expected to fall by 27.7% YoY (1,000 million JPY). This is likely due to the absence of non-operating income such as foreign exchange gains recorded in the previous fiscal year, as well as differences in assumed exchange rate settings.

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3. Assumed Exchange Rates

The exchange rate assumptions used in the company's earnings forecast are as follows:

• USD Rate :
  • Previous Year Actual: 150.67 JPY
  • Current Year Forecast Assumption: 150.00 JPY (A slight appreciation of the yen by 0.67 JPY compared to the previous year)
• EUR Rate :
  • Previous Year Actual: 169.19 JPY
  • Current Year Forecast Assumption: 175.00 JPY (A depreciation of the yen/euro appreciation by 5.81 JPY compared to the previous year)

For Alpha, which operates globally, exchange rate trends are a critical factor affecting operating and ordinary income through the translation of overseas subsidiary performance and import/export transactions. It is notable that while the company assumes the USD will remain at levels similar to the previous year, it anticipates a weaker yen against the Euro compared to the previous year's actuals.

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4. Summary and Outlook

With this timely disclosure, the clerical error in the Q1 financial results presentation materials for the fiscal year ending March 2027 has been accurately rectified.

Regarding the company's full-year plan for FY2027, the progress toward achieving the target of "73 billion JPY in net sales and 1.5 billion JPY in operating income" and the improvement in the operating margin to 2.1% will be the key focus. We will continue to monitor how the progress of operating income and the actual impact of exchange rate fluctuations evolve in future quarterly reports.