Impairment Losses on Investments in Affiliates and Allowance for Doubtful Accounts Due to Deteriorating Affiliate Performance

「During the fiscal year, the Company recorded impairment losses on investments in affiliates of ¥196.092 million for shares of MIRAGE GREEN (SINGAPORE) Pte. Ltd., ¥9.092 million for shares of 株式会社大多喜ハーブガーデン, and ¥5.000 million for shares of 株式会社維苑. In assessing loans to affiliates, the Company considers the affiliates' financial condition and operating results, comprehensively taking into account the amount of negative net worth and payment capacity of the relevant companies at the end of the fiscal year, and records the estimated unrecoverable amount as an allowance for doubtful accounts. During the fiscal year, the Company recorded a ¥918.146 million provision for doubtful accounts relating to loans to affiliates.」