Announcement of Record of Extraordinary Losses (Loss on Valuation of Investment Securities)

SHIFT Inc. (“SHIFT,” headquartered in Minato-ku, Tokyo, Japan; Masaru Tange, CEO and Representative Director) announced today that it has recorded loss on valuation of investment securities as extraordinary losses in the nine months ended May 31st, 2024 (from September 1st, 2023 to May 31st, 2024).

1. Overview of Extraordinary Losses (Loss on Valuation of Investment Securities)
Net asset value of certain investment securities that SHIFT and its subsidiary own has considerably decreased compared to acquisition cost, as a result of the valuation of net asset value based on the business plan and the latest performances as of May 31st, 2024. Therefore, SHIFT recorded extraordinary losses (loss on valuation of investment securities) in the nine months ended May 31st, 2024.

2. Amount of Loss on Valuation of Investment Securities
1,437 million yen

3. Financial Impact on Consolidated Performance
In the nine months ended May 31st, 2024, net sales grew by 28.1% year on year, to \81,143 million and operating profit decreased by 14.2% year on year, to 7,063 million. In addition, since SHIFT has recorded loss on valuation of investment securities as extraordinary losses by 1,437 million, its profit attributable to owners of parent decreased by 17.2% to 3,295 million.
For further details, please refer to “Consolidated Financial Results for the Nine Months Ended May 31, 2024 [Japanese GAAP].”

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Contact
Taichi Hattori
Director and CFO
ir_info@shiftinc.jp