Notice Regarding Borrowings (Refinancing) and Execution of Loan Agreements Subject to Financial Covenants

Overview of Financing and Refinancing

At the board of directors meeting held today, the Company resolved to enter into syndicated and bilateral term loan agreements to refinance the bridge loan related to the acquisition of the construction staffing business announced on January 15, 2026. The loan amounts consist of a 19,243 million yen syndicated facility and a 10,000 million yen bilateral facility, with the final maturity date scheduled as October 31, 2036. The proceeds will be used to repay the bridge loan. Mitsubishi UFJ Bank is acting as arranger and agent, and multiple participating financial institutions are involved.

Financial Covenants and Future Impact

As financial covenants applicable to consolidated financials for each fiscal year beginning with the fiscal year ending March 2027, the agreements require shareholders' equity to be maintained at 75% or more, that operating profit/loss does not result in losses for two consecutive fiscal years, and that interest-bearing debt/EBITDA does not reach or exceed 7x for two consecutive fiscal years. The initial assessment will cover the fiscal year ending March 2027 and the immediately following fiscal year. At this time, the impact on consolidated results for the current fiscal year is expected to be minimal; any additional disclosures will be published as necessary.