Change in Tax Expense Calculation Method Based on Estimated Effective Tax Rate

「Income tax expense is calculated by reasonably estimating the effective tax rate after applying tax-effect accounting to profit before income taxes for the consolidated fiscal year including the interim consolidated accounting period, and multiplying interim profit before income taxes by the estimated effective tax rate.」

「Income taxes are calculated by reasonably estimating the effective tax rate after application of tax-effect accounting for the consolidated fiscal year including the current second-quarter consolidated accounting period, and multiplying the pretax quarterly net loss by that estimated effective tax rate.」

「Previously, the company and its consolidated subsidiaries calculated income tax expense using the standard method. To further improve the efficiency of the group's quarterly closing process, the method was changed from calculating tax expense using the standard method to estimating a reasonable effective tax rate after applying tax-effect accounting to pretax net income for the consolidated fiscal year, and multiplying pretax quarterly net income by that estimated effective tax rate, beginning with the first quarter of the consolidated fiscal year.」