Change in revenue recognition method prompted by the launch of Mission 2

「For Missions 1 and 3 through 5, because the degree of progress toward satisfying performance obligations cannot be reasonably estimated, we apply the cost recovery method. For Mission 2, we had applied the cost recovery method for the same reason, but following its successful launch in January 2025, it became possible to reasonably estimate the degree of progress toward satisfying performance obligations, so we changed to a method of recognizing revenue based on the progress of performance obligations.」

「For Missions 1 and 3, because the degree of progress toward satisfying performance obligations cannot be reasonably estimated, we apply the cost recovery method. However, for Mission 3 this is the assessment as of the date of filing, and the revenue recognition method may subsequently be changed to one based on the degree of progress toward satisfying performance obligations, as for Mission 2. For Mission 5 and subsequent missions, we are considering recognizing revenue using a method that estimates the degree of progress toward satisfying performance obligations based on the proportion of total costs incurred.」

「For certain contracts, we changed the revenue recognition method from the cost recovery method to a method based on the degree of progress toward satisfying performance obligations, triggered by the successful launch of our Mission 2. As a result, revenue for the consolidated fiscal year increased by ¥1,813.906 million.」