Change in income tax classification following adoption of the accounting standards for income taxes

「The company has applied the Accounting Standard for Tax Effect Accounting for Income Taxes, Inhabitants' Taxes and Enterprise Taxes (Accounting Standards Board of Japan 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. Previously, corporate taxes, inhabitants' taxes and enterprise taxes on income and other items (hereinafter "income taxes") were recognized in profit or loss at the amount calculated in accordance with applicable laws and regulations. Under the revised treatment, income taxes on income are recognized in profit or loss, shareholders' equity or other comprehensive income according to the transactions and other events giving rise to them. Income taxes recognized in accumulated other comprehensive income are recognized in profit or loss, together with the corresponding tax amount, when the transactions and other events giving rise to those income taxes are recognized in profit or loss. However, when a transaction or other event subject to taxation relates not only to profit or loss but also to shareholders' equity or other comprehensive income, and it is difficult to calculate the amount of income taxes charged to shareholders' equity or other comprehensive income, the tax amount is recognized in profit or loss. The amendments concerning the presentation of income taxes, including taxes on other comprehensive income, are accounted for in accordance with the transitional treatment prescribed in the proviso to Paragraph 20-3 of the 2022 Revised Accounting Standard. The change in accounting policy had no impact on the interim consolidated financial statements.」