#Japan #Tokyo #Terra Charge #Special Profit #Securities Sale

Special Profit Recognition Announcement

We are pleased to announce that our company will recognize a special profit in the consolidated fiscal year ending in August 2025. This announcement details the circumstances surrounding the profit recognition and its implications for our business.

1. Gain from Sale of Investment Securities

As part of our strategic financial management, we have decided to sell our shares in Terra Charge Inc. This transaction will result in a recorded gain of 100 million yen, recognized as special profit in both individual and consolidated financial statements. The decision to proceed with this sale was made after careful consideration of its impact on our FY2025 performance.

Despite this sale, we would like to reassure our stakeholders that our business partnership with Terra Charge Inc. will continue unaffected. We value our collaboration and aim to enhance our joint efforts going forward.

2. Impact on Company Performance

While there will be an increase in our special profits due to this transaction, we would like to clarify that there will be no changes to the full-year consolidated earnings forecast we published on April 14, 2025. We continue to monitor our financial performance closely. Should there be a need to revise our forecasts due to this or other influencing factors, we will promptly inform all stakeholders.

Our proactive approach to financial management ensures that we capitalize on profitable opportunities while maintaining the integrity of our business operations. We are committed to transparency and will keep our investors informed of any further developments impacting our performance.

In summary, the sale of our investment securities in Terra Charge Inc. will positively contribute to our reported special profits, yet it does not alter our performance outlook as previously published. We are excited about our ongoing relationship with Terra Charge and anticipate continued success together.

For further inquiries on our financial strategies or the implications of this announcement, we encourage our stakeholders to reach out for comprehensive discussions on our future direction and performance strategies.