Offsetting the Deficit in Retained Earnings Brought Forward Through a Reduction in Stated Capital and Appropriation of Surplus

「At the extraordinary general meeting of shareholders held on 25 February 2022, the proposal concerning the reduction of capital and disposition of retained earnings was approved. As the deficit in retained earnings had been compensated and the Company had recorded profits for 3 consecutive fiscal years, it plans to pay a regular dividend of ¥5 per common share at the end of the current fiscal year from the perspective of returning profits to shareholders.」

「The Company will reduce its capital and dispose of surplus to compensate for the current deficit in retained earnings, ensure flexibility and agility in future capital policies, and improve its financial soundness through the appropriate application of tax rules. Specifically, pursuant to Article 447, Paragraph 1 of the Companies Act, the Company will reduce the amount of capital and transfer the reduction to other capital surplus. It will then transfer part of the increased other capital surplus to retained earnings pursuant to Article 452 of the Companies Act and apply it to compensate for the deficit in retained earnings.」