Securing flexibility in capital policy through a capital reduction without compensation

「Based on the resolution of the Annual General Meeting of Shareholders held on 24 June 2022, the reduction in stated capital became effective on 1 August 2022. During the cumulative second quarter, stated capital decreased by ¥1,249.161 million, and the entire amount of the reduction was transferred to other capital surplus. In response, a portion of other capital surplus amounting to ¥2,858.260 million and ¥279.582 million in reserve for reduction entry of fixed assets were transferred to retained earnings brought forward to eliminate the deficit.」

「At the 61st Annual General Meeting of Shareholders held on 24 June 2022, the company approved a reduction in the amount of stated capital, which became effective on 1 August 2022. The reduction was carried out pursuant to Article 447, paragraph 1 of the Companies Act to secure flexibility and agility in future capital policy. Stated capital of ¥1,349,161,250 was reduced by ¥1,249,161,250 to ¥100,000,000. The reduction was effected without refunds, and the total number of issued shares was unchanged. Only stated capital was reduced, and the entire reduction was transferred to other capital surplus.」