Accelerating Decision-Making and YSM’s Listing Through a Partial Transfer of Shares

「The share transfer was completed on 31 October 2024. As a result, our voting rights in YSM declined to 19.9%, and one of the 2 directors dispatched by us changed from 1 director to no director. Since we consequently lost significant influence over YSM’s financial and operating policies, YSM was excluded from equity-method affiliates as of the same date.」

「The purpose of this share transfer is to accelerate decision-making within YSM under the leadership of 東星集団, the largest shareholder, by transferring part of the shares to 東星集団, thereby accelerating global expansion and enabling an early listing. Some of the shares acquired by 東星集団 through this transfer will also be used for stock options for YSM employees. The transfer is scheduled for 31 October 2024. As a result, our voting rights in YSM will decline to 19.9%, and one of the 2 directors dispatched by us will change from 1 director to no director. Since we will consequently lose significant influence over YSM’s financial and operating policies, YSM will be excluded from our equity-method affiliates. Accordingly, we expect to record approximately ¥24.0 billion in gains on the transfer of YSM shares and the revaluation gain on the remaining shares (gain or loss on the sale and revaluation of investments in associates) in the current consolidated fiscal year. Some of the shares acquired by 東星集団 through this transfer will also be used for stock options for YSM employees.」