Announcement regarding the plan to recognize proceeds from sale of treasury stock and other investment securities in a sale outside the market for treasury stock (ToSTNeT-3)

Overview

Alps Alpine plans to sell 3,000,000 shares of Nippon Precision Machinery Co., Ltd. through the treasury stock sale method outside the market (ToSTNeT-3). If the sale is realized, the company expects to recognize about 5,000,000,000 yen as investment securities sale gains in the second quarter of the fiscal year ending March 2027. The sale is being conducted to reduce strategically held shares and improve capital efficiency, and was decided after comprehensively considering the meaningfulness of holdings. The sale assumes ToSTNeT-3 settlement by Nippon Precision Machinery; there is a risk that part or all of the shares may not be sold depending on market conditions.

Impact and outlook going forward

The investment securities sale gains are expected to be recognized in the second quarter of the fiscal year ending March 2027 in both standalone and consolidated results. The impact on earnings guidance is currently under review, and if revisions are necessary, they will be announced promptly. The actual amount may vary depending on whether the sale is completed and costs.