Notice of Completion of Change in Consolidated Subsidiary (Transfer of Equity Interest and Third-Party Allotment)

Completion of Transactions and Financial Impact

The series of transactions relating to the transfer of equity in Guangzhou Shuguang Brake Co., Ltd. and the third-party allotment announced on April 17, 2026 were completed with the transfer registration on July 2, the third-party allotment on September 21, and the settlement procedures on September 25. Accordingly, a gain on sale of investment in an affiliate of 3 hundred million yen is expected to be recorded in the consolidated financial statements for the fiscal year ending March 2027, and 10 hundred million yen is expected to be recorded in the non-consolidated financial statements. Guangzhou Shuguang is scheduled to be reclassified from a consolidated subsidiary to an equity-method affiliate at the end of the second quarter of the fiscal year ending March 2027, and the impact on full-year results is expected to be minor.

Outlook and Points to Note

The financial effect resulting from the completion of these transactions is considered limited, and the timing of the reclassification is expected to have only a minor impact. Specific figures are expected to continue to be disclosed in future financial announcements.