Change in inventory valuation method prompted by the renewal of the core system

「The company and certain consolidated subsidiaries had primarily used the cost method based on the moving-average method to value major raw materials, calculated by writing down their book value based on a decline in profitability. From the beginning of the current interim consolidated accounting period, this was changed to the cost method based on the weighted-average method, also calculated by writing down book value based on a decline in profitability. This change in valuation method was made in connection with the renewal of the core system, with the aim of calculating profit and loss for each period more appropriately. Because it was practically impossible to calculate the figures using the weighted-average method for prior consolidated fiscal years, and it was difficult to calculate the cumulative effect of applying the change retrospectively, the book values at the end of the previous consolidated fiscal year were used as the opening balances for the current consolidated fiscal year, and the weighted-average method has been applied from the beginning of the fiscal year onward. The effect of this change is immaterial.」