Notice Regarding Massive Exercising of the 70th Stock Acquisition Rights Issued by Third-Party Allotment (with Exercise Price Adjustment Clause)

Status and Scale of Massive Exercising

This announcement reports on the massive exercising of the 70th stock acquisition rights. The number of shares to be delivered is 5,600,000 shares. The exercise price is undisclosed. The number of stock acquisition rights exercised is 56,000, representing 11.7% of the total issued. The number of issued shares at the end of the previous month for the target month was 87,378,960 shares, of which treasury shares are 91,394. Unexercised rights decreased from 328,460 to 272,460.

Impact and Future Developments

Because the massive exercising exceeds a certain proportion of listed shares, treatment for exercises exceeding regulatory limits may apply, making appropriate disclosure and monitoring of future trends important. Cases are suggested where restriction clauses under previously concluded purchase agreements may be excluded, so attention should be paid to dilution effects and the linkage with capital policy. It is necessary to confirm whether additional disclosures will be made going forward and to verify the status of treasury share holdings and the financial impact.