Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
September 10, 2025
Listed company: | Toshiba Tec Corporation |
Representative: | Hironobu Nishikori Representative Director President and Chief Executive Officer |
(Securities code: 6588, Tokyo Stock Exchange Prime Market) | |
Contact: | Akira Abe General Manager of Corporate Communication Division |
(Tel: +81-3-6830-9151) |
Notice Regarding the Recording of Extraordinary Loss
Toshiba Tec Corporation ("the Company") expects to record extraordinary loss in the consolidated and non-consolidated financial statements for the second quarter (semi-annual) of the fiscal year ending March 31, 2026 as follows. The Company announces that this falls under the requirement for submission of extraordinary reports based on Article 24-5, Paragraph 4 of the Financial Instruments and Exchange Act, and Article 19, Paragraph 2, items 12 and 19 of the Cabinet Office Order Ordinance on Disclosure of Corporate Affairs.
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Date of the event
September 10, 2025
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Details of the event
As announced earlier, on July 1, 2024, the Company transferred the shares of Toshiba Tec Information Systems (Shenzhen) Co., Ltd. (hereinafter, "TESS"), which was the Company's subsidiary, to ETRIA Co., Ltd. (hereinafter, "ETRIA"), a joint venture formed by the Company and Ricoh Company, Ltd. on that date to develop and manufacture MFPs, and TESS became a subsidiary of ETRIA.
Subsequently, on September 26, 2024, the Company concluded a contract with ETRIA including provisions stipulating that in the event that ETRIA decides to downsize TESS' businesses and TESS proceeds with employee layoffs, the Company shall bear a portion of the economic compensation payments that TESS is obligated to make to employees as a result of such layoffs (hereinafter, the "Expenses Borne by the Company").
ETRIA has recently decided a plan to reduce the scale of TESS' businesses during FY2026 as part of consolidation of its manufacturing sites in order to streamline production systems and optimize the allocation of management resources. Consequently, TESS notified its employees regarding the future policy of downsizing its businesses and its impact, which enabled the Company to reasonably estimate the amount of Expenses Borne by the Company.
The Company therefore expects to record extraordinary loss in the second quarter (semi-annual) of the fiscal year ending March 31, 2026.
Furthermore, the Company does not expect to bear any expenses in connection with the restructuring, etc. of the ETRIA Group from the third quarter of the fiscal year ending March 31, 2026.
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Effect of the event on non-consolidated profit or loss and consolidated profit or loss
Due to the event, the Company expects to record extraordinary loss in the consolidated and non-consolidated financial results for the second quarter (semi-annual) of the fiscal year ending March 31, 2026 as follows.
(Consolidated) Extraordinary loss approx.4,020 Million yen (Non-consolidated) Extraordinary loss approx.4,020 Million yen
- Future outlook
The temporary expenses associated with this matter have been reflected in the full-year consolidated financial forecast announced on August 6, 2025. The Company will promptly announce any revisions to the financial forecast that require disclosure.