Application of Accounting Standards and Related Standards for Income Taxes

「The Company has applied the “Accounting Standard for Tax Effect Accounting for Corporate Income Taxes, Inhabitant Taxes and Enterprise Taxes” (ASBJ Statement No. 27, 28 October 2022; hereinafter, the “2022 Revised Accounting Standard”) and other standards from the beginning of the current interim consolidated accounting period. For the revisions concerning the classification of corporate income taxes and other taxes in the financial statements (taxation of other comprehensive income), the Company follows the transitional treatment stipulated in the proviso to paragraph 20-3 of the 2022 Revised Accounting Standard and the transitional treatment stipulated in the proviso to paragraph 65-2(2) of the “Implementation Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, 28 October 2022; hereinafter, the “2022 Revised Implementation Guidance”). For the revisions concerning the treatment in consolidated financial statements when gains or losses on sales arising from the sale of shares in subsidiaries between consolidated companies are deferred for tax purposes, the Company has applied the 2022 Revised Implementation Guidance from the beginning of the current interim consolidated accounting period. There is no impact from this change in accounting policy on the interim consolidated financial statements or consolidated financial statements.」