Adoption of Accounting Standards for Business Combinations and Related Standards

「With respect to the business combination with 株式会社オープンアンドナチュラル carried out on 31 March 2022, provisional accounting treatment had been applied during the first quarter of the consolidated accounting period, but it was finalized during the second quarter of the current consolidated accounting period.」

「The business combination with 株式会社ゼットン carried out on 16 February 2022 had been accounted for provisionally during the previous consolidated fiscal year, but the accounting treatment was finalized during the first quarter of the current consolidated fiscal year.」

「With respect to the business combination with Velvet, LLC carried out on 18 April 2017, provisional accounting treatment had been applied during the third quarter of the previous consolidated accounting period, but it was finalized at the end of the previous consolidated fiscal year.」

「As a result of finalising this provisional accounting treatment, a significant revision to the initial allocation of the acquisition cost has been reflected in the comparative information included in the quarterly consolidated financial statements for the six-month period ended 30 September.」

「The Company applied the Accounting Standard for Business Combinations, the Accounting Standard for Consolidated Financial Statements and other standards from the current consolidated fiscal year, changing its method of accounting so that differences arising from changes in the Company's equity interest in a subsidiary while control is retained are recorded as capital surplus, and acquisition-related costs are recorded as expenses in the consolidated fiscal year in which they arise.」

「The company has applied the Accounting Standard for Business Combinations (Accounting Standard No. 21, 13 September 2013, hereinafter the "Business Combination Accounting Standard"), the Accounting Standard for Consolidated Financial Statements (Accounting Standard No. 22, 13 September 2013, hereinafter the "Consolidated Accounting Standard"), the Accounting Standard for Business Divestitures (Accounting Standard No. 7, 13 September 2013, hereinafter the "Business Divestiture Accounting Standard") and other standards from the first quarter of the consolidated accounting period, changing its accounting method so that differences arising from changes in the company's ownership interest in a subsidiary while control continues are recognized in capital surplus and acquisition-related costs are recognized as expenses in the consolidated fiscal year in which they arise.」