Notice Regarding Dissolution of Subsidiary and Recognition of Gain on Corporate Taxes and Corporate Tax Adjustments

Overview of Subsidiary Dissolution

Jishu Co., Ltd. resolved to dissolve its wholly owned subsidiary New Real Property Co., Ltd. (NRP) effective April 1, 2026. NRP became a subsidiary in 2016 and was primarily engaged in real estate and overseas PFI businesses. Following the termination of the overseas PFI business, liquidation procedures have progressed and have been substantially completed, leading to this dissolution. The completion of liquidation is scheduled for August 31, 2026.

Operational and Financial Impact

NRP's recent three-year performance shows no recorded revenue for the fiscal year ending December 2025, with operating loss of △96 million yen, ordinary loss of △35 million yen, and net loss attributable to owners of parent of △37 million yen. In connection with this dissolution, Jishu Co., Ltd. reviewed the recoverability of deferred tax assets and plans to recognize a gain on corporate taxes and corporate tax adjustments of 1,685 million yen in consolidated accounts and 1,530 million yen in non-consolidated accounts. This has already been incorporated into the consolidated earnings guidance for the fiscal year ending December 2026, disclosed on February 12, 2026.