The entire amount of 10 billion yen raised through this public offering will wholly be used as standby funds for future M&A. Therefore, this 10 billion yen will never be spent to the M&As that have already been announced or closed as of today. The 10 billion yen will be used sequentially for M&A projects after today, together with debt financing.

Since July 31, when we received 10 billion yen, although there is actually no cash outflow, we are aware that the cost of capital for the shares is incurred as well as interest on debt, and that the cost to be returned to investors is compounding even before we actually use the funds for M&A. On the other hand, as M&A being our core business, we believe that we should not rush to use the funds for a poor M&A.

Therefore, in order to minimize the opportunity loss until the funds are actually used in the M&A, we currently do not keep the 10 billion yen funds in our deposit account, but rather manages the funds in a low-risk, short-term manner in order to generate as much interest income as possible. Since the funds for M&As are actually remitted at the time of final completion, not at the time of announcement, the short-term fund management does not interfere with the M&A process.

We will be aggressively pursuing M&A projects with the funds entrusted to us by our investors, and will announce our current pipeline one by one as soon as possible.