Approach and Policy on Share Unit Reduction

Section Heading

This disclosure explains the approach and policy regarding share unit reduction and notes that the Company will carefully consider moving to a level below 500,000 yen per unit, taking into account market conditions, share price and trading volume, and shareholder composition at the Board of Directors meeting. It notes that the action will be implemented based on the average share unit level in the most recent fiscal year being above 500,000 yen, in accordance with the regulations of the stock exchanges.

Section 2 Heading

This disclosure is intended to inform investors of a policy aimed at expanding investment opportunities in shares, but the specific timing and amount are undecided. The Company will continue to study this cautiously depending on market trends, emphasizing that the decision on the necessity of share unit reduction will be made from the perspectives of long-term stock price, market conditions, and shareholder composition.