Change in Inventory Valuation Method

「From the second quarter of the current consolidated fiscal year, the Company changed its inventory valuation method from the cost method based on the moving-average method, with book value reduced based on declining profitability for balance-sheet valuation, to the cost method based on the weighted-average method, with book value reduced based on declining profitability for balance-sheet valuation. This change was made after the Company reviewed its valuation method following the renewal of its core system in September 2022, having determined that the new method would enable more timely calculation of profit and loss for each period.」