Notice Regarding Third-Party Allocation of Shares of a Subsidiary

Overview of Capital Policy

Our subsidiary, ASTMAX Ebino Geothermal Co., Ltd., will carry out a third-party allotment of shares, with Takenaka Corporation set to be the subscriber. The subscription agreement is scheduled to be executed on October 30, 2026, and the payment period is scheduled from November 10 to 30, 2026. Capital after the increase will be 294,375 thousand yen, and post-increase ownership ratios will be ASTMAX Co., Ltd. 50.03% and Takenaka Corporation 49.97%. As a result of the capital increase, Ebino Geothermal is expected to once again meet the criteria for a specified subsidiary, but a subsequent capital reduction is expected to remove its status as a specified subsidiary.

Future Impact and Schedule

The implementation of this capital increase is expected to have a minor impact on the consolidated results for the current fiscal period, and any revisions to business plans or additional decisions will be disclosed as necessary. The capital increase aims to strengthen the foundation and improve the profitability of the regional geothermal power generation business, and the capital structure will be reorganized following the payment period in late November 2026.