Finalization of Provisional Accounting for Business Combinations

「As the provisional accounting treatment was finalized, significant revisions to the initial allocation of the acquisition cost were reflected in the previous consolidated fiscal year. ¥468,000 thousand was allocated to customer-related assets and ¥161,881 thousand to deferred tax liabilities, reducing the provisionally calculated goodwill from ¥523,891 thousand by ¥306,118 thousand to ¥217,773 thousand.」

「In the previous consolidated fiscal year, the company applied provisional accounting treatment after acquiring shares of Ten Nine Communication and including it in the scope of consolidation. During the six months ended June 30, the accounting treatment was finalized. As a result, the comparative information included in the interim consolidated financial statements reflects a material revision to the initial allocation of the purchase price. ¥468,000 thousand was allocated to other intangible assets, specifically customer-related assets, and ¥161,881 thousand to other non-current liabilities, specifically deferred tax liabilities. Consequently, goodwill decreased by ¥306,118 thousand from the provisional amount of ¥523,891 thousand to ¥217,773 thousand.」