Risk of failing to meet the delisting criteria

「We are subject to various legal and regulatory requirements and institutional restrictions, including the Companies Act, the Financial Instruments and Exchange Act, the Corporation Tax Act, the Labor Standards Act and listing rules prescribed by stock exchanges.」

「During the cumulative second-quarter period, no new business or other risks arose. In addition, there were no significant changes to the business and other risks described in the securities report for the previous fiscal year.」

「During the cumulative first quarter of the current fiscal year, there were no occurrences of matters concerning the business situation, accounting situation or other matters described in the quarterly report that could have a material impact on investors’ decisions, and no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「The Tokyo Stock Exchange, where our shares are listed, has strict delisting criteria. Our shares may become subject to the delisting criteria due to deterioration in business performance, stock market trends or other reasons.」

「No new business or other risks arose during the cumulative third quarter. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative second-quarter period, no new business or other risks arose. In addition, there were no significant changes to the business and other risks described in the securities report for the previous fiscal year.」

「The Tokyo Stock Exchange, where our shares are listed, has strict delisting criteria. Our shares may become subject to the delisting criteria due to deterioration in business performance, stock market trends or other reasons.」

「No new business or other risks arose during the cumulative third quarter. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative second-quarter period, no new business or other risks arose. In addition, there were no significant changes to the business and other risks described in the securities report for the previous fiscal year.」

「The Tokyo Stock Exchange, where our shares are listed, has strict delisting criteria. Our shares may become subject to the delisting criteria due to deterioration in business performance, stock market trends or other reasons.」

「Our shares are listed on the Second Section of the Tokyo Stock Exchange, but our listing market capitalization fell below ¥1 billion in July 2016, placing us in the grace period prescribed under Article 601, paragraph 1, item 4(a) of the Tokyo Stock Exchange Securities Listing Regulations (market capitalization). However, because the monthly average market capitalization and month-end market capitalization reached ¥1 billion or more in October 2016, the shares did not meet the delisting criteria prescribed by the Tokyo Stock Exchange, and the designation placing us in the grace period was lifted.」

「Our shares are listed on the Second Section of the Tokyo Stock Exchange, but our listing market capitalization was less than ¥1 billion in July 2016. Article 601, paragraph 1, item 4(a) of the Tokyo Stock Exchange Securities Listing Regulations provides that the shares will be delisted if, within 9 months, the monthly average market capitalization and month-end market capitalization do not each reach ¥1 billion or more. This period is 3 months if a document describing the current status of the business, future development, improvements to the business plan and other matters deemed necessary by the Tokyo Stock Exchange is not submitted to the Tokyo Stock Exchange within 3 months.」

「Our shares may become subject to delisting criteria due to deterioration in business performance, stock market trends or other reasons.」