Notice Regarding Conclusion of a Loan Agreement with Financial Covenants in Connection with Succession of Customer Dispatch Business

Overview of the Matter

In conjunction with consolidated subsidiary YNP's planned succession of Inside Growth Co.'s customer dispatch business via absorption-type company split, a loan agreement with financial covenants will be concluded. The lender is Seibu Shinkin Bank. The principal is 325 million yen, the repayment deadline is September 2031, the interest rate is 2.0%, and the loan is unsecured. Contract terms include maintaining the required debt repayment years within five years on an annual basis, maintaining EBITDA of at least 40 million yen per year, not selling the subject business, and keeping YNP as a subsidiary.

Impact on Investors and Future Outlook

The conclusion of this agreement is expected to have a minor impact on consolidated results for the fiscal year ending March 2027, and is intended to strengthen the financial base for future investment recovery and agile M&A activity. The agreement stipulates possible interest rate increases and loss of benefit of term if financial covenants are breached, making maintenance of financial soundness an important issue. Material matters will be disclosed promptly if they occur.