Notice Regarding Decision to Grant Large-Scale Growth Investment Subsidy

Summary of Subsidy Grant

Onoken Co., Ltd. has received a decision from the Ministry of Economy, Trade and Industry to grant a Large-Scale Growth Investment Subsidy. The subsidized project aims to strengthen logistics and processing functions and to promote data-driven management through IT infrastructure improvements. The subsidy amount is currently 2,463,849,101 yen (subsidy rate 1/4), eligible project costs are 9,855,396,406 yen, and total project cost is 10,399,726,276 yen. The actual grant amount will be finalized following inspections and other subsequent procedures.

Wage Increase Plan and Future Outlook

The target equipment is expected to begin full-scale operation in the fiscal years ending March 2028 and March 2029, and the company has stated its policy to increase the total annual wages paid to employees associated with the subsidized project by 6.0% on average from the fiscal year ending March 2029 through the end of the business plan period ending March 2032. The direct impact on this term's consolidated results is expected to be minor, and additional information will be disclosed after the subsidy amount is finalized.