(Progress of Disclosure) Notice Regarding Expected Recognition of Special Gain (Gain from Negative Goodwill)

Key points on special gain and goodwill

The Company announced that, in accounting for a business combination related to the acquisition of a subsidiary, the fair value of identifiable net assets at acquisition exceeded the consideration transferred, and therefore it expects to recognize 22.9 billion yen as a gain from negative goodwill as a special gain in the interim consolidated accounting period for the fiscal year ending March 2027. This amount is provisional and may change depending on the completion of allocation and other factors. Note that this gain does not involve any cash inflow.

Impact on full-year results and next steps

The impact on the full-year consolidated earnings forecast is being examined including other factors, and if a revision to the earnings forecast becomes necessary, the Company will promptly disclose it.