Decline in the recoverability of deferred tax assets associated with deteriorating performance and structural reforms

「After considering the impact of deteriorating performance in the current fiscal year and the withdrawal from unprofitable projects associated with structural reform, the company determined, based on its tax-planning outlook, that the recoverability of deferred tax assets had declined and reversed part of the deferred tax assets at the end of the fiscal year. As a result of this change in accounting estimate, a loss of ¥28,714 million was recognized in the current fiscal year under “Income taxes—deferred” in the statement of income.」