August 9, 2024

Company name:Representative:Contact:

KATO WORKS CO., LTD.
Kimiyasu Kato,President and Representative Director(Code number: 6390)
Hidetada Yanagihara,
Executive Officer and General Manager,
Finance Control Department(Phone: +81-3-3458-1130)

Notice Regarding Revisions to Financial Results Forecast
KATO WORKS CO., LTD. (the “Company”) has not determined profit attributable to owners of parent in the full-year
consolidated financial results forecast for the fiscal year ending March 31, 2025 presented in the “Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024 [Japanese GAAP]” announced on May 14, 2024 due to the difficulty of reasonably
estimating at the beginning of the period the amount of impact that would occur in association with the review of the Chinese
business that is being promoted. The Company hereby announces that, however, it has decided to revise the undetermined forecast
as follows, given that the Company has been able to calculate the approximate impact of this event at this point in time.

1. Revisions to the forecast
Revisions to the full-year consolidated financial results forecast for the fiscal year ending March 31, 2025 (April 1, 2024 toMarch 31, 2025)

Net sales

Operating profit

Ordinary profit

Profitattributable toowners ofparent

Basic earnings
per share

Million yen

Million yen

Million yen

Million yen

Yen

Previous forecast (A)70,0002,100

1,500－－

Actual results (B)70,0002,100

1,500(5,400)(460.88)

Change (B-A)

000－

Change (%)

0.0

0.0

0.0－(Reference) Results for theprevious fiscal year
57,498
1,654
2,575
4,235
361.49(Fiscal year ended March 31,2024)*Assumed exchange rate (first half) 1 US dollar = 135 yen, 1 yuan = 22 yen; (second half) 1 US dollar = 130 yen, 1 yuan = 22 yen

12. Reason for the revisions
The Chinese business of the Company has been playing a part in the performance of the Company as one of our mainstay
businesses, as exemplified by the sufficient investment effect (approximately 4.2 billion yen) which includes losses that areestimated to be incurred in the future, supported in part by the high economic growth in China and product recognition in themarket.
However, the Company has considered the fundamental review of the Chinese business, in consideration also of the impact on
the consolidated financial results in the future, based on such facts as the recent emergence of local manufacturers in China andcontinued lower demand caused by slowdown in infrastructure investment arising from the real property market conditions, which
resulted in our inability to foresee any sign of recovery in the business environment.
The Company has not determined the forecast for profit attributable to owners of parent because it was difficult to reasonably
estimate the amount of impact associated with the review of the business at the beginning of the period. However, as stated in the“Notice Regarding Dissolution and Liquidation of Consolidated Subsidiaries” announced on June 20, 2024 and July 12, 2024,
we determined to dissolve and liquidate two Chinese subsidiaries. Given these facts, the Company calculated the financial results
forecast based on currently available information.
While the forecast for net sales, operating profit, and ordinary profit have been unchanged from the previous ones, the Company
determined the forecast for profit attributable to owners of parent to be (5,400) million yen, as we estimated that an extraordinary
loss incurred in association with this event (loss on liquidation of subsidiaries) is to be approximately 7,000 million yen at thispoint in time.
As stated above, consolidated financial results for the fiscal year under review are estimated to be temporarily severe. However,
we consider that the consolidated financial results and capital profitability of the following fiscal year and beyond will improve
following this event, because the recent loss incurred is a temporary one and the recent earnings base of the Company is being
gradually stabilized thanks to various measures taken under the medium-term management plan, the final year of which is thefiscal year under review.
*The financial results forecast and other forward-looking statements described herein are based on the information currently available
to the Company and certain assumptions that the Company considers reasonable, and actual financial results may significantly differ
from the forecast and statements due to various factors.

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