Change in Tax Expense Calculation Method

「Previously, the Company reasonably estimated the effective tax rate after applying tax-effect accounting to profit before income taxes for the consolidated fiscal year including the current first quarter, and calculated quarterly profit before income taxes by multiplying it by that estimated effective tax rate. However, as the number of factors affecting performance increased due to changes in the operating environment of consolidated subsidiaries, it became difficult to reasonably calculate the estimated effective tax rate. Accordingly, from the current first quarter, the method of calculating tax expense for consolidated subsidiaries was changed to the same method used for annual financial statements.」

「Tax expense is calculated by reasonably estimating the effective tax rate after applying tax-effect accounting to pretax income for the consolidated fiscal year that includes the first quarter of the current fiscal year, and multiplying pretax quarterly income by that estimated effective tax rate.」

「Previously, the company and its consolidated subsidiaries generally calculated tax expenses using the standard method. To further improve the efficiency of quarterly closing procedures, from the first quarter of the current consolidated fiscal year we changed to a method under which the effective tax rate after applying tax-effect accounting to pretax net income for the consolidated fiscal year is reasonably estimated and multiplied by pretax quarterly net income.」