Notice Regarding Litigation Filed Against Our Company

Overview of the Litigation

On March 17, 2026, the Consumer Organization Japan, a specified non-profit corporation, filed an injunction lawsuit at the Tokyo District Court claiming that certain clauses in the terms of use of our B2C payment services violate the Consumer Contract Act and are therefore invalid. The main claims concern the clauses exempting liability for damages, waiver of defenses, and payment of overdue administrative fees. The plaintiff demands suspension of use and deletion of these clauses. Our company recognizes that these clauses have been appropriately managed based on advice from multiple experts and intends to assert and prove their validity throughout the trial proceedings.

Future Outlook and Impact

This litigation is limited to B2C services and does not cover B2B payment services. Furthermore, it is an injunction claim and does not include any past fee refund claims. At this time, the direct financial impact is considered minimal, and the effect on this fiscal year's performance is expected to be limited. We believe the impact on our primary revenue source, payment fee income from merchants, will not be significant. Going forward, we will strive to balance consumer protection and convenience while examining appropriate optimizations to promote a healthy market environment.