Transfer pricing and double taxation risks associated with transactions with overseas subsidiaries

「In connection with a tax investigation based on the transfer pricing rules concerning transactions between the Company and its U.S. subsidiary, the Company received a reassessment notice from the tax authorities and paid the additional tax during the fiscal year. To eliminate the double taxation between Japan and the United States that would result from the reassessment, the Company has requested a mutual agreement procedure from the tax authorities of both countries under the Japan-U.S. tax treaty.」