This stock split is related to the shareholder benefit program that takes advantage of the characteristics of our B2C business.

First, in introducing a new “shareholder benefit program,” which was particularly requested by individual investors, we wanted to design it at a level that would allow them to realize a “meaningful benefit yield,” rather than merely a formal benefit.

On the other hand, with our stock price level immediately prior to the announcement of financial results, in which we announced the stock split, the benefit yield was 1.5%.

While this was a significant level relative to growth companies, we sought to provide further convenience and investment opportunities in order to gain the medium- to long-term support from more individual investors.

There are two main ways to increase yields in the benefit program, to lower the minimum investment unit (i.e., allow investors to become shareholders with smaller amounts) and to raise the amount of benefits itself. We have implemented both for our individual shareholders’ patronage this time.

Specifically, we chose a “stock split” as a means to reduce the investment unit without affecting the enterprise value, and then maintained the amount of benefits, effectively doubling the amount of benefits.

This will make it easier for more individual investors to become shareholders and at the same time provide substantial benefits in terms of yield.

In fact, at the post-split stock price level, the yield on shareholder benefits is 3.0%, which is high enough for a growth company and meaningful as an absolute value (more than 4% at the current stock price).

If we tried to get the same effect without conducting a stock split, we would have to quadruple the amount of benefits. However, raising the amount of benefits excessively may put pressure on the profitability of the core business and, as a result, may damage the most important shareholder value. We are afraid that this would be putting the cart before the horse and would result in an undesirable outcome for shareholders.

In addition, the Tokyo Stock Exchange requires all listed companies to have a “minimum investment amount of approximately 100,000 yen,” and the stock split has allowed the Company to meet this standard.

Finally, our M&A strategy aims to enhance the medium- to long-term enterprise value rather than short-term performance fluctuations. We will continue to strive to provide detailed and honest information so that our shareholders can gain a deeper understanding of our efforts.

We would be most appreciative if you would kindly give us your continued support from a long-term perspective.