Change in the useful life of molds (changed from 2 years to 8 years)

「The useful life was changed to 8 years from the beginning of the current consolidated fiscal year. As a result, compared with the previous method, gross profit, operating income, ordinary income and net income before income taxes for the current consolidated fiscal year increased by ¥65.687 million each.」

「Of the "Other" tangible fixed assets held by the Company, molds had previously been depreciated over a useful life of 2 years. However, the Company changed its management policy to invest more actively in new products in response to expanding overseas sales and diversifying customer preferences. As continued investment is expected, mold investment is projected to increase substantially and the significance of molds and depreciation expense to rise. In light of these circumstances, the Company determined that it was appropriate to revise the useful life to better reflect actual conditions. Based on past usage, it reasonably estimated the useful life and changed it to 8 years from the beginning of the interim consolidated accounting period. As a result, compared with the previous method, gross profit, operating income, ordinary income and interim net income before income taxes increased by ¥22.532 million each from the beginning of the interim consolidated accounting period.」