Notice Regarding Receipt of Correction Notice from Nagoya Regional Taxation Bureau

Summary

This notice informs that Sun Corporation has received a correction notice for the fiscal year ended March 2025 as a result of a tax audit by the Nagoya Regional Taxation Bureau related to consideration adjustments associated with Cellebrite, an equity-method affiliate listed on NASDAQ. The notified amount totals corporate tax, local corporate tax and additional tax for underreporting of 93 hundred million yen and 50 million yen; no aggravated additional tax was imposed. The tax authority asserts a particular treatment of the acquisition cost, while the company contends there is no error in its tax treatment and will pursue cancellation at the tax tribunal. Any revisions to the previously disclosed full-year earnings guidance or other impacts will be announced separately.

Future response and impact

The company is proceeding with procedures to petition the tax tribunal to cancel the Nagoya Regional Taxation Bureau's correction. There is a possibility that disputes over tax treatment will continue, and readers should refer to separate announcements for any direct impact on operating results. Exchange-rate information is provided, but no immediate effect on specific financial metrics is described in this document.