Matters Concerning Controlling Shareholders, etc.

Overview of relationships with the controlling shareholder

This document states that Suzuyo Co., Ltd. is the Company’s controlling shareholder and explains the parent group’s business domains and the Company’s position within them. It lists concurrent positions held by executives as part of personnel relationships with the parent, noting concurrent appointments of the Representative Director and the President & Chief Operating Officer. A decision-making framework based on mutual discussions is described to maintain independence while sustaining a positive relationship with the parent group.

Transactions with the controlling shareholder and minority shareholder protection

Rental transactions related to the data center and warehouse businesses were conducted with the parent company, Suzuyo Co., Ltd., in the current period. The disclosed transaction amounts are revenue of 220 million yen and rental expenses of 201 million yen. As part of minority shareholder protection measures, the Company conducts assessments of appropriateness, obtains board approval, provides explanations to outside counsel and the statutory auditors, leverages third-party evaluations, and addresses conflicts of interest through independent directors’ views.