Change in the Method of Calculating Quarterly Tax Expenses Following a Review of the Group's Dividend Policy

「Tax expense had traditionally been calculated by reasonably estimating the effective tax rate after applying tax-effect accounting to profit before income taxes for the consolidated fiscal year including the quarterly consolidated accounting period, and multiplying quarterly profit before income taxes by that estimated effective tax rate. From the first quarter of the current fiscal year, however, following a review of the group's intra-group dividend policy, the proportion of items such as dividends from subsidiaries that are permanently excluded from taxable income in quarterly profit before income taxes for the cumulative third quarter became higher than the corresponding proportion used to calculate the annual estimated effective tax rate. Accordingly, it was determined that the method using the annual estimated effective tax rate would not appropriately reflect the consolidated group's results for the cumulative quarterly period, and the company changed to a simplified method of calculating tax expense similar to that used for the annual financial statements.」

「Tax expenses had previously been calculated by reasonably estimating the effective tax rate, after applying tax-effect accounting, to pretax net income for the consolidated fiscal year that included the quarterly consolidated accounting period, and multiplying pretax quarterly net income by that estimated effective tax rate. However, following a review of the intragroup dividend policy beginning with the first quarter, the proportion of items such as dividends from subsidiaries that are permanently excluded from taxable income relative to pretax quarterly net income for the second-quarter cumulative period became higher than the corresponding proportion used to calculate the estimated annual effective tax rate. The Company therefore determined that the method using the estimated annual effective tax rate could not appropriately reflect the consolidated group's results for the quarterly cumulative period, and changed to a simplified method of calculating tax expenses similar to that used in the annual financial statements.」

「Tax expenses had previously been calculated by reasonably estimating the effective tax rate, after applying tax-effect accounting, to pretax net income for the consolidated fiscal year that included the quarterly consolidated accounting period, and multiplying pretax quarterly net income by that estimated effective tax rate. However, following a review of the intragroup dividend policy beginning with the first quarter of the current fiscal year, the proportion of items such as dividends from subsidiaries that are permanently excluded from taxable income relative to pretax quarterly net income for the first-quarter cumulative period became higher than the corresponding proportion used to calculate the estimated annual effective tax rate. The Company therefore determined that the method using the estimated annual effective tax rate could not appropriately reflect the consolidated group's results for the quarterly cumulative period, and changed to a simplified method of calculating tax expenses similar to that used in the annual financial statements.」