Special tax treatment to raise the carryforward loss deduction limit under a business adaptation plan

「Under the tax incentive based on the business adaptation plan approved in April last year, ¥43.5 billion in previously unrecognized deferred tax assets related to tax loss carryforwards was recognized.」

「During the three-month period ended 30 June, operating revenues rose 47.1% year on year to ¥297.1 billion, operating income was ¥19.5 billion, and ordinary income was ¥16.9 billion, reflecting the recovery in customer use as the impact of COVID-19 diminished. In addition, the Company posted ¥43.5 billion in previously unrecognized deferred tax assets related to tax losses carried forward, due to a tax incentive under the business adaptation plan certified in April, resulting in quarterly net income attributable to owners of the parent, after deducting income taxes and other taxes, of ¥57.8 billion.」

「After the Minister of Land, Infrastructure, Transport and Tourism approved our business adaptation plan (growth and development business adaptation plan) under the Industrial Competitiveness Enhancement Act on 1 April 2022, we were permitted to apply special tax treatment under which, for up to 5 consolidated fiscal years, the deduction limit for tax loss carryforwards arising during the COVID-19 pandemic could be raised from the current 50% to a maximum of 100%, within the amount of investments made in accordance with the business adaptation plan.」