Change of fiscal year-end to align with the budget cycle of local governments

「At the extraordinary general meeting of shareholders held on 24 March 2022, the proposal on partial amendments to the Articles of Incorporation was approved. Accordingly, the grace period for delisting based on negative net worth will run through 31 March 2023. We will continue to make eliminating negative net worth our highest priority. In our funding measures, in addition to those already announced and implemented, we will maintain close relationships with financial institutions, centred on our main bank, consider and discuss various funding methods, and work to secure funding for the group as a whole. We plan to reformulate “HOPE NEXT 3” in line with eliminating negative net worth.」

「The company's fiscal year will be changed to run from 1 April each year through 31 March of the following year. Our group transitioned to a holding-company structure effective 1 December 2021. As we establish internal systems and a group-wide management control structure in connection with this transition, we will manage the group's business in line with the operating, budgeting and budget-execution cycles of local governments nationwide, our main business partners. We will also implement group-wide budgeting and controls accordingly, operate them effectively, and align the operation of internal systems, including the personnel evaluation system, with those cycles, thereby promoting smoother business activities and the establishment of a management control structure.」