Change in the depreciation method for property, plant and equipment in connection with the construction of the Kanto No. 2 Plant

「As a result of this change, operating income, ordinary income and net income before income taxes and other adjustments for the current consolidated fiscal year increased by ¥148,133 thousand compared with the previous method.」

「As a result of this change, operating profit, ordinary profit and profit before income taxes for the cumulative third quarter of the current fiscal year increased by ¥94.852 million compared with the former method.」

「The group previously used the declining-balance method to depreciate property, plant and equipment, excluding leased assets, except that it used the straight-line method for buildings acquired on or after 1 April 1998, excluding building fixtures, and for newly acquired building fixtures and structures from 1 April 2016. From the first quarter of the current consolidated fiscal year, the group changed to the straight-line method. Following the construction of the Second Kanto Factory, the group reviewed how its property, plant and equipment were used and determined that the utilisation rate of the equipment and repair costs had remained generally stable and were expected to remain stable over the long term. It therefore concluded that the straight-line method was more appropriate than the declining-balance method for allocating costs. As a result of this change, operating income, ordinary income and quarterly net income before income taxes and other adjustments for the six months ended the second quarter increased by ¥61,957 thousand compared with the previous method.」