Financial Covenants under a Syndicated Loan Agreement

「The company has entered into a syndicated loan agreement with a financial institution containing financial covenants. The principal terms are as follows: original facility amount ¥4,000 million, period-end outstanding balance ¥3,300 million, and repayment deadline 31 May 2034. The financial covenants are: ① to maintain consolidated net assets at each fiscal year-end at not less than 75% of the higher of the net assets at the end of the immediately preceding fiscal year or at the end of the fiscal year ended February 2023, based on the standalone balance sheet; and ② not to record an ordinary loss for 2 consecutive fiscal years, based on the standalone income statement at each fiscal year-end.」