Reclassification of Research and Development Expenses and Other Costs to Selling, General and Administrative Expenses Following an Organizational Review of the Automotive Parts Business

An accounting presentation change arising from a review of the organization and business activities accompanying next-generation technology development for CASE and MaaS and the strengthening of the central management function for the automotive parts business. A portion of research and development expenses and other costs will be reclassified from cost of sales to selling, general and administrative expenses. The change will also be applied retrospectively to comparative information.