Notice regarding the application for market category change to the Tokyo Stock Exchange Standard Market

Section Heading

This is a notice regarding the application for market category change to the Tokyo Stock Exchange Standard Market. After a period of inadequate alignment with the market capitalization criteria for the Prime Market as of the end of 2023, the company submitted an alignment plan in 2024, and in the following year remained out of compliance. While improvements have been pursued, from the perspective of long-term management strategy and shareholder value maximization, the decision was made to emphasize suitability for the Standard Market and to proceed with the market category change application. If any matters requiring disclosure arise in the future, they will be published promptly.

Section 2 Background

The background of the market category change resolution is to reassess the suitability of the current corporate size and growth stage for the market category, aiming for ongoing compliance and optimal resource allocation. Rather than pursuing Prime Market eligibility at all costs, the company intends to shift to the Standard Market to pursue long-term growth and enhanced corporate value. Moving forward, related disclosures will be made as appropriate to maximize shareholder and stakeholder interests.