Announcement of Reduction of the Amount of Share Capital

We hereby announce that at the meeting of the Board of Directors held today, we have resolved to submit a proposal to the 15th Ordinary General Meeting of Shareholders to be held on November 25, 2020, to reduce the amount of share capital as described below.

Notes

1. Purpose of Reduction of the Amount of Share Capital
At the 14th Ordinary General Meeting of Shareholders held on November 27, 2019, we resolved to reduce the amount of share capital for the purpose of ensuring the flexibility of future capital policies.
This reduction in the amount of share capital will also be made for the purpose of continuing to ensure the flexibility of capital policy.
Specifically, pursuant to the provisions of Article 447(1) of the Companies Act, the amount of share capital is to be reduced and the entire amount of share capital to be reduced is transferred to other capital surplus.
The decrease in the amount of share capital is a transfer journal between accounts in the “Net assets” section of Balance Sheet, and there is no change in the amount of net assets. In addition, since we will not change the total number of issued shares, it will not affect the number of shares held by shareholders or the amount of net assets per share.

2. Procedures for Reduction of the Amount of Share Capital

(1) Amount of Share Capital after the Reduction
Due to the execution of this reduction in the amount of share capital, the amount of share capital after the reduction will be ¥10 million.
The amount of share capital to be reduced will be determined based on the future exercise of stock acquisition rights and other factors, and will be promptly disclosed once it is determined.

(2)Method of Reducing the Amount of Share Capital
The total number of issued shares will not be changed, and the entire amount of the share capital to be reduced will be transferred to other capital surplus.

3. Schedule for Reduction of the Amount of Share Capital
The detailed schedule will be disclosed as soon as it is decided.

4. Future Outlook
This is a transfer journal within the accounts in “Net assets” of the Balance Sheet. Therefore, there will be no change in the amount of net assets, and the impact on operational results will be immaterial.

This matter is subject to approval at the 15th Ordinary General Meeting of Shareholders to be held on November 25, 2020.