Interest Rate Increases and Financial Covenant Breaches on M&A Borrowings

「The Group has borrowed a substantial amount from financial institutions to fund M&A transactions. A significant future increase in market interest rates could affect operating results through higher interest expense. In addition, the borrowings entered into with financial institutions are subject to financial covenants. If the Group’s operating results deteriorate and it breaches any such covenant, it could lose the benefit of time with respect to repayment, affecting the Group’s financial position and operating results. The Group must not report losses in ordinary income or loss in the consolidated and non-consolidated statements of income for two consecutive fiscal year-end periods.」