Recoverability of assets related to contracted development projects and delays in obtaining regulatory approvals

「The execution of the outsourcing agreement in question requires regulatory approval, and obtaining that approval is taking longer than initially expected. Accordingly, we have determined that, at present, objective conditions remain insufficient to assess the recoverability of the other assets in question. Based on the current circumstances concerning recoverability, our company therefore recognised an allowance for doubtful accounts of ¥198 million against those other assets and recorded an equal amount as an expense for provision for doubtful accounts in the interim consolidated accounting period.」