Notice Regarding Sale of Held Shares (Progress Report 3)

Overview

This additional sale arises from the exercise of rights to additionally acquire LINTEC shares by the lead manager, Mizuho Securities, and the number of shares sold is 415,100 shares with total proceeds of 21 hundred million yen. As a result of this offering and the related treasury stock acquisition, LINTEC is expected to be excluded from the scope of equity-method associates. Consequently, the Company plans to record a gain on sale of affiliate shares of 19 hundred million yen (approx.) in the standalone full-year results for the fiscal year ending March 2027 and a gain on sale of investment securities of 8 hundred million yen (approx.) as an extraordinary gain in the consolidated results.

Outlook and Impact

As a result of this additional sale and related transactions, a reversal of deferred tax liabilities will occur, and an adjustment to corporate taxes and others of 36 hundred million yen (approx.) is expected to be recorded in the consolidated results for the fiscal year ending March 2027. The earnings forecast for the fiscal year ending March 2027 is currently under review and will be disclosed as soon as a reasonable forecast can be prepared.