Notice on the designation of the controlled securities (under review) for the consolidated subsidiary Saikaya Co., Ltd.

Background and reason for designation

This matter is based on Saikaya, a consolidated subsidiary, whose compliance with the free float market capitalization standard as the maintenance criterion for the Tokyo Stock Exchange Standard Market could not be confirmed as of the last business day, August 31, 2026. The Tokyo Stock Exchange plans to designate it as a controlled securities (under review) as of September 1. If compliance cannot be confirmed, it may be designated as a reorganized issue and delisted on March 1, 2027.

Future actions and impact

To maintain the Standard Market listing, the company will wait for the results of the examination based on the 'Distribution of Shares' table submitted. Depending on the results, it will be determined whether it meets the free float market capitalization standard, and if not, it may proceed to delisting. The anticipated investor impact includes reduced liquidity and increased price volatility of the shares.