Matters Concerning the Controlling Shareholder

Overview of Controlling Shareholder Information and Related Transactions

The company's controlling shareholder is Mr. Takahisa Shimizu (direct holding 36.62%, aggregated total 54.71%). Transactions with the controlling shareholder include payment of real estate rent, and the disclosure includes records of outsourced bill collection services, deposits received, and accounts receivable (other). Transaction amounts are determined with reference to market prices, and the board of directors carefully examines and resolves the appropriateness of contract terms and market prices. Measures to protect minority shareholders are also specified, and the controlling shareholder does not participate in the resolutions.

Future Impact and Disclosure Stance

This disclosure is made to ensure transparency regarding transactions with the controlling shareholder and indicates that a framework to protect minority shareholders is in place. Specific financial impacts are unknown, so it is necessary to monitor future trends in transaction terms and additional disclosure developments. Although foreign exchange information is provided in a separate section, its direct impact on the main text is unknown.