Notice Regarding Change in Use of Proceeds and Timing of Expenditures and Delay in Disclosure

Change in Use of Proceeds and New Expenditures

This notice reports the reorganization of the use of proceeds of 1,000 million yen raised by these new shares with payment on March 31, 2026, and up to 3,200 million yen via exercise of the 9th series of share subscription rights, aligning the allocation with actual expenditure results and progress compared to the initially disclosed breakdown. Actual expenditures were reallocated across various items, including operating funds and expenses for the EX business, MS business, and renewable energy, and the timing of expenditures has also been changed. In addition, the treatment of issuance-related expenses has been updated. Consequently, the estimated net proceeds increased from 3,068 million yen to 3,103 million yen.

Delay in Disclosure and Recurrence Prevention Measures

It is explained that discrepancies were identified during a review of the allocation status of the proceeds, and the Tokyo Stock Exchange issued a stern warning. As recurrence prevention measures, the company plans to establish a disclosure committee, implement periodic reporting on the allocation status of proceeds, centralize management of material facts, conduct prior consultations on draft timely disclosures, and enforce strict segregated fund management, among other steps, and will shift to operations that reflect the use of proceeds in real time.