Covering the Deficit through Reductions in Capital and Capital Reserve and Implementing a Flexible Capital Policy

「At the 41st Annual General Meeting of Shareholders held on 29 June 2023, the Company resolved to reduce the amounts of capital and capital reserves and dispose of surplus. With 29 August 2023 as the effective date, it reduced capital by ¥2,979.041 million and capital reserves by ¥1,021.014 million, respectively, and transferred the same amounts to other capital surplus. In addition, pursuant to Article 452 of the Companies Act, the Company offset the deficit by transferring ¥4,000.056 million in other capital surplus to retained earnings brought forward. As a result, as of the end of the current second-quarter consolidated accounting period, capital was ¥50 million, capital surplus was ¥1,040.407 million, and retained earnings were ¥17.061 million.」

「The purpose is to offset the deficit in retained earnings brought forward that has currently arisen and strengthen the financial position, while taking advantage of tax benefits such as reduced tax burdens, and to prepare for the implementation of flexible capital policies and shareholder-return measures in the future.」