Notice Regarding Change of Use of Funds

Overview of Change in Fund Use

At the Board of Directors meeting, it was resolved to partially change the use of funds totaling 11,057 million yen procured through a third-party allotment of shares announced between May and June 2024. Originally, 9,057 million yen was to be allocated to investments in consolidated subsidiary MIRARTH Energy Solutions for acquiring and developing solar power generation facilities, biomass power plants, and cashew nut processing plants. However, due to anticipated profitability declines caused by inflation and rising interest rates, as well as a redefinition of business scope, capital allocation was reviewed. Consequently, a new policy was adopted to allocate 6,086 million yen to investments in Leben Home Build Co., Ltd. and Leben Stock Co., Ltd., which are responsible for the real estate business (newly built detached house sales and renovation resale).

Impact on Earnings and Future Outlook

The direct impact of the fund reallocation toward the real estate business on this fiscal year's results is expected to be minimal. However, it is considered beneficial for future business expansion, strengthening the financial base, and improving the equity ratio. Investment in equipment for solar power generation acquisition and development will continue to be promoted, ensuring it does not impair the important themes of the medium-term management plan, such as business portfolio optimization and sustainability promotion. Any significant changes will be promptly disclosed.