Notice Regarding Recognition of Deferred Tax Assets and Deferred Tax Liabilities

Regarding Recognition of Deferred Tax Assets

The Company has resolved to liquidate its consolidated subsidiary, Fujikura Europe (Holding) B.V. (FEH). Consequently, it expects to recognize deferred tax assets of 10.5 billion yen related to future deductible temporary differences on its investment in FEH in both the separate and consolidated financial statements for the fiscal year ending March 2026. This reflects the tax benefit due to realized losses upon the completion of liquidation. Accounting losses have been recognized in prior periods, and no new losses will be recorded.

Regarding Recognition of Deferred Tax Liabilities and Future Outlook

In light of rapid expansion in overseas operations, the Company plans to change its dividend policy from consolidated subsidiaries to enhance capital efficiency. Accordingly, it expects to recognize deferred tax liabilities of 7.7 billion yen related to future tax burdens on retained earnings of consolidated subsidiaries. The impact of these recognitions on net income attributable to owners of the parent is 2.8 billion yen and is considered minor for the full-year consolidated earnings forecast for the fiscal year ending March 2026. The Company intends to promptly disclose information as needed going forward.