Decision to Borrow under Commitment Line Agreement

Strengthening Funding and Financial Stability

Shikibo will, for the purpose of efficiently procuring working capital, execute borrowings under a commitment line agreement with 15 banks including city banks, trust banks, and regional banks, totaling 12,000 hundred million yen. Existing borrowings of 7,520 hundred million yen will be repaid and a new borrowing of 7,520 hundred million yen will be made. The repayment deadline is November 30, 2026, and the borrowings are unsecured. Financial covenants require maintaining standalone shareholders' equity at 75% or more compared to the same period of the previous fiscal year at the end of each fiscal year for the next three fiscal years, and that ordinary income does not record losses for two consecutive periods. The direct impact on performance is expected to be minor, and any additional disclosures will be promptly made as necessary.

Impact and Future Disclosures

This borrowing is intended to stabilize cash management and includes clauses aimed at maintaining financial soundness. The impact on future performance is considered limited, and Shikibo will make timely disclosures should material information arise. Attention should be paid to potential changes in capital structure and uses of funds.