Notice Regarding the Transfer of Fixed Assets and Recording of Extraordinary Income (Gain on Sale of Fixed Assets and Reversal of Repair Allowance)

Overview of the Fixed Asset Transfer

Toko Takaoka Corporation resolved at the Board of Directors meeting on April 28, 2026, to transfer a rental building located in Higashi-Gotanda 2-chome, Shinagawa-ku, Tokyo (land: 2,339.53㎡, building: 20,250.03㎡). The transferee is a domestic operating company with no capital or personnel relationship, and the transfer will be carried out in stages by transferring ownership interests. The transfer price and book value are confidential due to confidentiality obligations, but the gain on transfer is expected to be approximately 10.7 billion yen.

Impact on Performance and Use of Funds

As a result of this transfer, extraordinary income of approximately 10.7 billion yen from gain on sale of fixed assets and approximately 1.3 billion yen from the reversal of repair allowance is expected to be recorded over the two fiscal years ending March 2027 and March 2028. The proceeds will be allocated toward growth investments based on the medium-term management plan (factory DX, production capacity enhancement, R&D, etc.) as well as share buybacks to improve capital efficiency and expand shareholder returns.