#ShareholderDerivativeLawsuit

The Company has decided to participate as an auxiliary defendant in the shareholder derivative lawsuit and will appropriately counter the plaintiff shareholders' claims as they are judged to be unfounded.

A shareholder has filed a shareholder derivative lawsuit claiming damages of 23.624 billion yen related to illegal treasury stock acquisition against a total of seven individuals, including one former director and representative executive officer, five former outside directors, and one current director and representative executive officer.

One of our shareholders has filed a shareholder derivative lawsuit against an outside director demanding payment of 16.5 billion yen plus delayed damages. We currently judge that there is no significant impact on performance.

Regarding the shareholder derivative lawsuit, a settlement was reached whereby the defendants shall jointly pay 50 million yen to the joint litigants by March 31, 2026. The special profit is expected to be recorded in the fiscal year ending March 2026.