Standardization of Retirement Benefit Accounting Methods and Retrospective Application

「From the beginning of the current consolidated fiscal year, the method for attributing projected retirement benefits to service periods was standardised on the benefit formula basis. In addition, the method for expensing unrecognised actuarial differences was standardised on the straight-line basis.」

「The consolidated subsidiary 宮地エンジニアリング株式会社 had, through the previous consolidated fiscal year, used different methods for attributing projected retirement benefits to service periods. 旧株式会社宮地鐵工所, before the merger, had used the straight-line basis, while 旧宮地建設工業株式会社 had used the benefit formula basis. Following the integration, effective 1 October 2024, of the pension assets relating to the retirement pension plans that had been separated by predecessor company, the Company decided to standardise the method of attributing projected retirement benefits to service periods on the benefit formula basis from the beginning of the current interim consolidated accounting period. In addition, the methods used to expense unrecognised actuarial differences had also differed: 旧株式会社宮地鐵工所 had used the declining-balance method, while 旧宮地建設工業株式会社 had used the straight-line method. The Company therefore decided to standardise the method on the straight-line basis.」