Capital expansion and funding for growth investments through bond-type class shares

「At a meeting of the Board of Directors dated 30 August 2024, we resolved to issue the Second Series Debt-Type Class Shares and completed the issuance on the payment date of 3 October 2024. The class and number of shares offered are 25,000,000 of our debt-type class shares, and the issue price is ¥8,000 per share. The proceeds are intended to fund capital investment as growth investment contributing to the medium- to long-term enhancement of corporate value, including the realization of services using generative AI and the construction of next-generation social infrastructure.」

「The total number of issued class shares increased by 30,000 thousand shares through the issuance of the First Series Debt-Type Class Shares, with a payment date of 1 November 2023.」

「We concluded that, in order to continue balancing growth investment with a high level of shareholder returns while making growth investments related to advanced communications and IT technologies and next-generation social infrastructure, it would be desirable to strengthen our capital and financial base by combining debt financing with equity financing. Against this background, we resolved to issue these debt-type class shares because we consider them a useful funding option for expanding equity capital while minimizing, to the extent possible, the impact on the interests of existing common shareholders, and because they can meet the needs of a broad range of investors, including individual investors. The class and number of shares offered are 30,000,000 shares, the issue price is ¥4,000 per share, the payment date is 1 November 2023, and the annual preferential dividend rate for each fiscal year ending on or before 31 March 2029 is 2.500%.」