Matters Concerning Controlling Shareholders

Status of Parent Company and Controlling Shareholders

Dentsu Group Inc. is the parent company of our company and holds 61.8% of the voting rights. Our company is positioned as a key technology enterprise within the parent company group, undertaking the construction, maintenance, and operation of information systems, and promoting collaborative business activities. The sales ratio to the parent company group accounts for 13.6% of consolidated net sales for the fiscal year ending December 2025. Transaction terms are determined based on market prices and total costs, consistent with general market conditions.

Transactions with Controlling Shareholders and Minority Shareholder Protection

The cash deposits to the parent company amount to 61,863 million yen, with interest rates determined in accordance with general market conditions referencing market interest rates. Regarding personnel relationships, one executive from the parent company group concurrently serves as a director of our company, and we accept 32 personnel seconded from the parent company group. The board of directors consists of 11 members including six independent outside directors, ensuring independence. There are no special restrictions from the parent company regarding significant financial or business policies, and our company conducts business activities based on independent management decisions.