#CanonElectronics

As a result of the public tender offer by Canon Inc. for our company's shares, the voting rights ownership ratio reached 87.94%, with plans to make us a wholly owned subsidiary and delist from the stock exchange.

Canon Electronics plans to consolidate 6,235,122 shares into 1 share on April 23, 2026, reducing the number of issued shares from approximately 40,901,805 shares to 6 shares. Concurrently, the designated number of shares per unit will be abolished, and the stock is scheduled to be delisted on April 21, 2026.

Canon Electronics plans to delist from the Tokyo Stock Exchange Prime Market on April 21, 2026. Through a share consolidation, the number of shares will be reduced from 40,901,811 shares to 6 shares, resulting in Canon Inc., the tender offeror, becoming the sole shareholder.

Canon Electronics Inc. plans to cancel 1,304,729 shares of treasury stock on April 22, 2026. The cancellation is subject to approval of the share consolidation proposal at the shareholders' meeting.

Recorded a special loss of 6,753 million yen due to impairment loss on affiliated company shares in the individual financial statements for the fiscal year ending December 2025. No impact on consolidated financial results.

For the fiscal year ending December 2025, the individual financial results recorded net sales of JPY 81,267 million (4.4% increase YoY), ordinary income of JPY 6,075 million (16.5% decrease YoY), and net income attributable to owners of parent of △JPY 2,558 million (148.5% decrease YoY).

Due to the recognition of an impairment loss on equity-method investments in affiliates in the non-consolidated financial statements for the fiscal year ending December 2025, the non-consolidated net income attributable to owners of parent was corrected from ¥4,686 million to a loss of ¥2,558 million. There is no impact on consolidated results.

For the fiscal year ending December 2025, consolidated net sales were 104.4021 billion yen (3.7% YoY increase), operating income was 8.980 billion yen (13.6% YoY decrease), and net income attributable to owners of parent was 6.503 billion yen (15.1% YoY decrease).

Canon Inc. acquired 13,470,819 shares of Canon Electronics Inc. at 3,650 yen per share, raising its voting rights ownership ratio from 55.01% to 87.94% (ended on 2026-01-19).

The record date for the extraordinary general meeting of shareholders is set as January 27, 2026. This measure is to prepare for the post-tender offer shareholder restructuring by Canon Inc. after the completion of its tender offer for the Company’s shares.