Transition from the Consolidated Taxation System to the Group Tax-Sharing System

「The Company and certain domestic consolidated subsidiaries have transitioned from the consolidated taxation system to the group tax-sharing system from the beginning of the first quarter of the current fiscal year.」

「Applied the accounting treatment associated with the transition to the group aggregation system」

「The Company and certain consolidated subsidiaries have applied the treatment set out in Paragraph 3 of "Treatment of the Application of Tax Effect Accounting Related to the Transition from the Consolidated Taxation System to the Group Aggregation System" (Practical Response Report No. 39, 31 March 2020) to items for which the transition to the group aggregation system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the accompanying review of the single-entity taxation system were implemented. Accordingly, they have not applied the provisions of Paragraph 44 of the "Implementation Guidance on Accounting Standard for Tax Effect Accounting" (ASBJ Guidance No. 28, 16 February 2018), and have calculated deferred tax assets and deferred tax liabilities based on the provisions of tax laws before the amendments.」