The purpose of the share repurchase is to maximize capital efficiency.

While we prioritize M&A discipline – specifically, the rules for acquiring other companies’ shares – a share repurchase becomes an option for us. This would occur if, in light of our own projected future growth, we determine that acquiring our own shares is a more meaningful use of capital than acquiring another company, all from the perspective of maximizing capital efficiency.

Therefore, though it is unusual, we plan to conduct a special, non-consolidated financial closing in the third quarter to increase the distributable amount.

Normally, to increase the distributable amount, we have to wait until the full-year financial results are announced in March 2026. However, as we think that that is too late, we plan to hold an extraordinary settlement of accounts at the end of the third quarter in December 2025, raise the distributable amount on a non-consolidated basis to an appropriate level, and quickly establish a structure that will enable us to make effective share repurchase.

Currently, the distributable amount on a non-consolidated basis is 1.2 billion yen, but on a consolidated basis this amount can be raised to 36.6 billion yen (*1).

Additionally, if we acquire our own shares at an undervalued price and the stock price later rises, we can re-use those shares as consideration for M&A. This would, as a result, lighten the financial burden of future M&A deals.