Notice Regarding the Issuance of the Second Tranche of Paid New Share Options through Third-Party Allotment

Issuance of the stock acquisition rights and allocation recipient

A-Mobile will issue the second tranche of paid stock acquisition rights through a third-party allotment and has selected asset management company T-Net as the allocation recipient. The design does not require shareholder meeting approval, and features include the allocation recipient contributing funds at fair value and exercise conditions incorporating performance and stock price targets. Upon exercise of the stock acquisition rights, 3,000,000 shares will be issued, and to mitigate dilution for existing shareholders, treasury stock will be allocated.

Exercise conditions and risk management

Exercise is limited to when a combination of adjusted consolidated operating profit and closing stock price conditions is met. In particular, the maximum number of exercisable rights is set at profit levels exceeding 5.8 billion yen, requiring a high profit level and attainment of stock price conditions. The beneficiary is effectively the recipient Tanaka Toshihiko of T-Net, who will enjoy financial benefits, and there is an independent body opinion on conflict-of-interest countermeasures.