Temporary Tax Expense and Future Tax Expense Reductions Resulting from US Tax Reform

「As announced on 27 December 2017, the enactment of U.S. tax reform legislation reduced the prevailing U.S. corporate tax rate from 35% to 21% effective 2018. As a result, the write-down of deferred tax assets generated a temporary corporate income tax expense of ¥9.6 billion. The resulting increase in corporate income tax in the consolidated income statement is a temporary accounting treatment arising from the tax rate change and does not increase the Group's cash tax payment obligations. The reduction in the U.S. corporate income tax rate is expected to reduce the Group's future tax expense.」