Notice of Decision to Grant Subsidy

Overview of the Subsidy and Investment Plan

Arisawa Mfg. Co., Ltd. has been awarded the "Large-Scale Growth Investment Subsidy for Labor-Saving Measures Aimed at Wage Increases for Small, Medium and Startup Companies." The covered project is a large-scale growth investment anticipating increased demand for semiconductor materials, and eligible expenses include building costs, machinery and equipment costs, and software costs. The subsidy cap is 2,127 million yen (subsidy rate: 1/4). The actual disbursed amount may vary following inspections after project completion.

Future Impact and Targets

The new factory is scheduled to commence operations in the fiscal year ending March 2029, and the impact on consolidated results for the current fiscal year is expected to be minor. The wage increase target is to achieve an average annual increase of 7.6% in total salary per employee over the three years from the fiscal year ending March 2029 through the fiscal year ending March 2032. Any material impact on performance depending on future progress will be disclosed in a timely manner.