FOR TRANSLATION PURPOSE ONLY
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes.
In the event of any discrepancy between this translated version and the original Japanese version, the latter shall prevail.
August 10, 2023

Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year ending March 31, 2024 (FY03/2024)[Japanese GAAP]
Company name:
EKITAN&Co., Ltd.
Stock exchange listing: Tokyo
Securities code:
3646
URL:
https://ekitan.co.jp/
Representative:
President, CEO and COO
Naoyuki Kaneda
Inquiries:
Director and CFO
Katsuya Kojima
Scheduled date to file Quarterly Securities Report:
August 10, 2023
Scheduled date to commence dividend payments:
N/A
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:No

TEL: 81-3-6367-5951(Amounts less than one mil. yen are rounded down)

1. Consolidated financial results of the first quarter of FY03/2024 (April 1, 2023 – June 30, 2023)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes)
Net sales

Operatingprofit (loss)

EBITDA*

Ordinary
profit (loss)

Net profit (loss) attributableto owners of parent

mil. yen%mil. yen%mil. yen%mil. yen%mil. yen

%

999
770

29.6
(10.8)

1271(82.9)(18.0)

(42)
28

－
(33.5

(41)
30

－
(30.0)

(41)
24

－
19.7

1Q of FY03/2024
1Q of FY03/2023

1Q of FY03/2024:(39) mil. yen [－%]
1Q of FY03/2023:
24 mil. yen [19.7%]* EBITDA = Operating profit + Depreciation + Amortization of goodwill(Note) Comprehensive profit

Net profit (loss) per share
1Q of FY03/2024
1Q of FY03/2023

Diluted net profit (loss) per share

yen

yen

(8.51)
4.42－－(2) Consolidated financial position
Total assets
1Q of FY03/2024
FY03/2023(Reference) Shareholders equity

1Q of FY03/2024:
FY03/2023:

Net assets

Equity ratio

mil. yenmil. yen

%

3,516
3,152

2,416
2,487

67.8
78.9

2,384 mil. yen
2,487 mil. yen

2. Cash dividends
Annual dividends per share
1Q-endFY03/2023
FY03/2024
FY03/2024 (forecasts)

2Q-end3Q-endYear-end

Total

yen

yen

yen

yen

yen

－
－

0.00

－

14.00

14.00

0.00

－

14.00

14.00

(Note) Revisions to dividend forecasts published most recently: No

3. Consolidated performance forecasts for FY03/2024 (April 1, 2023 – March 31, 2024)(Percentages indicate year-on-year changes)

Net sales

Operatingprofit (loss)

EBITDA

Ordinary
profit (loss)

Net profit
Net profit (loss) attributableto owners of parent(loss) per sharemil. yen%mil. yen%mil. yen%mil. yen%mil. yen%

yen(cumulative)

2,166

41.7

93

(38.7)

(27)

－

(26)

－

(25)

－

(4.79)

Full term

4,612

43.9

316

6.7

65

(37.3)

70(32.5)

38(56.7)

7.38

2Q(Note) Revisions to performance forecasts published most recently: No

FOR TRANSLATION PURPOSE ONLY
*Notes(1) Changes in significant subsidiaries during the current quarter consolidated cumulative period(changes in specified subsidiaries resulting in the change in scope of consolidation):
New: 1 (name) EKITAN I&I Co., Ltd.
Excluded: None
(Note) For details, please see the appendix, page 6, “2. Quarterly Consolidated Financial Statements and Principal Notes, (3) Notes
on Quarterly Consolidated Financial Statements”.

(2) Application of special accounting methods to the preparation of quarterly consolidated financial statement:
Yes(Note) For details, please see the appendix, page 6, “2. Quarterly Consolidated Financial Statements and Principal Notes, (3) Notes
on Quarterly Consolidated Financial Statements”.

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements① Changes in accounting policies due to revisions to accounting standards and other regulations: No② Changes in accounting policies due to other reasons:No③ Changes in accounting estimates:
No④ Restatement of prior period financial statements:
No(4) Number of issued shares (common shares)① Total number of issued shares at the end of the period (including treasury stock)
1Q of FY03/2024:

6,018,800 shares

FY03/2023:

6,018,800 shares② Number of treasury stock at the end of the period
1Q of FY03/2024:

1,171,316 shares

FY03/2023:

1,171,316 shares③ Average number of shares during the period (quarterly cumulative)
1Q of FY03/2024:

4,847,484 shares

1Q of FY03/2023:

5,509,684 shares* Quarterly summary of financial results is not included in a quarterly review by a certified public accountant
or an auditing firm.

* Explanation regarding appropriate use of the earnings forecast and other special notes
Descriptions about the future such as performance forecasts contained in this document are based on information
currently available to the Company and certain presumptions considered as reasonable, and those are not intended toindicate the Company should assure that it would realize such forecasts. Meanwhile, actual performance in the future
may differ substantially, influenced by a wide variety of factors. For preconditions for performance forecasts andprecaution statements in using such forecasts, please see the appendix, page 3, "1. Qualitative Information regarding
the Financial Results of the Current Quarter: (3) Descriptions regarding future prospects such as consolidated
performance forecasts".
Supplementary materials on financial results will be posted on the Company's website on August 10, 2023 (Thu.).

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024○ Table of Contents: Appendix
1. Qualitative Information regarding the Financial Results of the Current Quarter .............................................................. 2(1) Descriptions regarding operating results...................................................................................................................... 2(2) Descriptions regarding financial position .................................................................................................................... 3(3) Descriptions regarding future prospects such as consolidated performance forecasts ................................................... 3
2. Quarterly Consolidated Financial Statements and Principal Notes ................................................................................... 4(1) Quarterly Consolidated Balance Sheets ....................................................................................................................... 4(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income ........................................ 5
Quarterly Consolidated Statements of Income
For the first quarter consolidated cumulative period ............................................................................................... 5
Quarterly Consolidated Statements of Comprehensive Income
For the first quarter consolidated cumulative period ............................................................................................... 5(3) Notes on Quarterly Consolidated Financial Statements ............................................................................................... 6(Going Concern Assumption)...................................................................................................................................... 6(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity) ........................................................ 6(Changes in Important Subsidiaries during the Current Consolidated Cumulative Period) ........................................ 6(Application of Special Accounting Methods to the Preparation of Quarterly Consolidated Financial Statements) ............... 6(Segment Information) ................................................................................................................................................ 6(Significant Post-Balance Sheet Events) ..................................................................................................................... 81

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024

1. Qualitative Information regarding the Financial Results of the Current Quarter(1) Descriptions regarding operating results
During the current first consolidated cumulative period, Japanese economy has seen progress in normalization of
economic/social activities thanks to relaxation of behavioral restrictions for preventing wider spread of infections,such as transfer of the COVID-19 infection to category 5. However, economic trends are still in unpredictablesituations due to, for example, risk of suppression of economic climate because of worldwide monetary tightening,
steep rise of costs of raw materials and energy resources caused by the prolonged conflict between Russia andUkraine, and price escalations against the backdrop of weaker yen.
In such situations, our services for paid subscribers such as Transfer Information, being the Group’s businesspillars, have continuously experienced lower revenues associated with the trend towards decreasing number of paid
subscribers, affected by market environment including commoditization, so it is urgently necessary to create somebusiness that would be our new business pillar and strengthen our portfolio. As a part of such measures, the Company
acquired Proud Engine Inc. in November 2022 and established EKITAN I&I Co., Ltd. in April 2023 as its
consolidated subsidiaries, resulting in substantial increase in Net sales.
At the same time, with respect to profit, impact of decrease in services for paid subscribers which have highly
contributed to profit is considerable, and in addition, increased cost for renovation of “BTOnline” (a service forarrangement of ticketless business trip) that was carried out during the previous consolidated FY, and temporarily
incurred cost of establishment and share-acquisition of EKITAN I&I Co., Ltd. resulted in recording losses.
Consequently, consolidated financial results of the current first quarter consolidated cumulative period were as
follows: Net sales: 999,351 thousand yen (increase by 29.6% YoY); EBITDA: 12,235 thousand yen (decrease by
82.9% YoY); Operating loss: 42,638 thousand yen (as opposed to Operating profit of 28,437 thousand yen in theprevious FY); Ordinary loss: 41,957 thousand yen (as opposed to Ordinary profit of 30,002 thousand yen in theprevious FY); and Net loss attributable to owners of parent : 41,237 thousand yen (as opposed to Net profit
attributable to owners of parent of 24,370 thousand yen in the previous FY).
Operating results of individual business segments are as follows.
Please note that in conjunction with the establishment of EKITAN I&I Co., Ltd., from the current first quarter
consolidated fiscal period, M&A/Incubation Business segment has been newly added.
① Mobility Support BusinessThis segment experienced downward trend because of continuously decreasing number of paid subscribers due tocommoditization of Transfer Information service. Moreover, increased cost for renovation of “BTOnline” (a service
for arrangement of ticketless business trip) that was carried out during the previous consolidated FY, resulting inlower revenues/earnings.
These operations resulted in Net sales of 371,597 thousand yen (decrease by 6.7% YoY), EBITDA of 93,533
thousand yen (decrease by 23.6% YoY) and Segment profit of 80,860 thousand yen (decrease by 25.5% YoY).
② Advertisement Platform Business
Adding Proud Engine Inc. to this segment from the previous third quarter consolidated cumulative period
contributed to higher revenues, and with respect to “Cirqua”, an advertisement service operated by Cirqua, Inc.,
profitability status temporarily improved thanks to operations based on new criteria for posting advertisings inaccordance with the PMD Act revised in August 2021, but increasingly severe environment around these services
resulted in lower revenues. Concerning profit, in addition to allocating amortization of goodwill and others,
investment in creation of contents, etc. for the vertical media “Ekitan PICKS” resulted in recording segment loss.
These operations resulted in Net sales of 363,884 thousand yen (decrease by 2.4% YoY), EBITDA of (14,011)
thousand yen (which was 25,759 thousand yen in the previous FY) and Segment loss of 49,923 thousand yen (which
was 2,441 thousand yen in the previous FY).
③ M&A/Incubation BusinessNet sales was 264,308 thousand yen, EBITDA was 8,051 thousand yen, and Segment profit was 2,852 thousand
yen. It should be noted that as this segment has been newly added after establishing EKITAN I&I Co., Ltd. on April
25, 2023, no comparable figures are available for the previous first quarter consolidated cumulative period; andtherefore figures are shown only for the current first quarter consolidated cumulative period.

2

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024(2) Descriptions regarding financial position(Assets)
Current assets was 1,985,067 thousand yen at the end of the current first quarter consolidated fiscal period, i.e.
increase by 116,492 thousand yen as compared to the end of the previous consolidated FY. This is mainly due toincrease in Accounts receivable - trade & contract assets by 65,595 thousand yen and increase in “Others” included in
Current assets by 61,561 thousand yen. Non-current assets was 1,531,554 thousand yen, i.e. increase by 247,180
thousand yen as compared to the end of the previous consolidated FY. This is mainly due to increase in Goodwill by
55,266 thousand yen and increase in “Others” included in Investments and other assets by 138,530 thousand yen. As
a result, Total assets was 3,516,621 thousand yen, i.e. increase by 363,673 thousand yen as compared to the end of theprevious consolidated FY.
(Liabilities)
Current liabilities was 616,438 thousand yen at the end of the current first quarter consolidated fiscal period, i.e.
increase by 178,298 thousand yen as compared to the end of the previous consolidated FY. This is mainly due toincrease in Current portion of long-term loans payable by 46,576 thousand yen and increase in “Others” included in
Current liabilities by 116,559 thousand yen. Non-current liabilities was 484,084 thousand yen, i.e. increase by
257,251 thousand yen as compared to the end of the previous consolidated FY. This is mainly due to increase inLong-term loans payable by 210,204 thousand yen and increase in Liabilities on retirement benefits by 51,531
thousand yen. As a result, Total liabilities was 1,100,522 thousand yen, i.e. increase by 435,549 thousand yen ascompared to the end of the previous consolidated FY.
(Net assets)
Total net assets was 2,416,099 thousand yen at the end of the current first quarter consolidated fiscal period, i.e.
decrease by 71,875 thousand yen as compared to the end of the previous consolidated FY. This is due to decrease in
Retained earnings by 108,793 thousand yen. As a result, Equity ratio decreased from the end of the previous
consolidated FY by 11.1 points to 67.8%.
(3) Descriptions regarding future prospects such as consolidated performance forecasts
Consolidated performance forecasts for the 2Q (cumulative) and full-term of FY03/2024 have not been changed
since the last announcement on May 10, 2023.

3

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(thousand yen)Previous consolidated FY(March 31, 2023)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade & contract assets
MerchandiseWork in process
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Customer-related assets
Goodwill
OthersTotal intangible assets
Investments and other assets
Long-term loans receivable
OthersAllowance for doubtful accounts
Total investment and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Provision for loss on order received
Valuation allowance for purchase contracts
OthersTotal current liabilities
Non-current liabilities
Long-term loans payable
Asset retirement obligations
Liabilities on retirement benefits
Deferred tax liabilities
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4

Current consolidated FY, 1Q(June 30, 2023)

1,424,983
388,810－
12,866
1,760
40,567(412)
1,868,574

1,400,672
454,405
2,684
24,543
1,619
102,128(987)
1,985,067

60,984

66,745

313,784
272,490451,244
102,392
1,139,911

334,364
265,544506,510
102,6311,209,051－
83,476－
83,476
1,284,373
3,152,947

35,228222,007(1,478)
255,757
1,531,554
3,516,621

247,390
9,160
13,244
13,792－
9,100
13,156132,294438,139

225,797
55,736
21,85742,035
1,368
7,633
13,156
248,854
616,438

90,84014,411－
119,5812,000
226,833
664,973

301,044
14,411
51,531
115,0972,000
484,084
1,100,522

291,956
293,5312,498,077(595,589)
2,487,974

291,956
296,792
2,389,283(595,589)
2,382,442－－－
2,487,974
3,152,947

1,949
1,949
31,7072,416,099
3,516,621

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024(2) Quarterly Consolidated Statements of Income and Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the first quarter consolidated cumulative period)(thousand yen)Previous first quarter
Current first quarter
consolidated cumulative period consolidated cumulative period(Apr. 1, 2022 – Jun. 30, 2022) (Apr. 1, 2023 – Jun. 30, 2023)

Net sales
Cost of sales
Gross profit
SG&A expenses
Operating profit (loss)
Non-operating profit (loss)
Interest income
Gain on forfeiture of unclaimed dividends
Subsidy income
Interest subsidy
OthersTotal non-operating profit (loss)
Non-operating expenses
Interest expenses
Total non-operating expenses
Ordinary profit (loss)
Extraordinary losses
Loss on cancellation of lease contracts
Total extraordinary losses
Net profit (loss) before income taxes and minority interests
Income taxes
Net profit (loss)
Profit (loss) attributable to non-controlling shareholders
Profit (loss) attributable to owners of parent

770,832
535,545

999,351
725,714235,287
206,849
28,437

273,636
316,275(42,638)

3
61
1,500
311
－
1,876

927
80
－
310
156
1,475

311
311
30,002794
794(41,957)－－
30,002
5,631
24,370－24,3701,320
1,320(43,277)(1,530)(41,746)(509)(41,237)(Quarterly Consolidated Statements of Income)(For the first quarter consolidated cumulative period)(thousand yen)Previous first quarter
Current first quarter
consolidated cumulative period consolidated cumulative period(Apr. 1, 2022 – Jun. 30, 2022) (Apr. 1, 2023 – Jun. 30, 2023)

Net profit (loss)
Valuation difference on available-for-sale securities
Comprehensive income (loss)(detail)Comprehensive income (loss) attributable to owners of parent
Comprehensive income attributable to non-controlling interests

524,370－24,370(41,746)
2,166(39,580)

24,370－(39,287)(292)

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024(3) Notes on Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Notes in Case of Significant Changes in the Amount of Shareholders’ Equity)
Not applicable.
(Changes in Important Subsidiaries during the Current Consolidated Cumulative Period)
During the first quarter consolidated fiscal period, EKITAN I&I Co., Ltd. was newly established and has been
included in the scope of consolidation. EKITAN I&I Co., Ltd. is a specified subsidiary of the Company.
In addition, although not applicable to changes in particular subsidiaries, during the first consolidated fiscal
period, EKITAN I&I Co., Ltd. acquired Growth and Communications Co., Ltd., Cybernet Co., Ltd., and Information
Technology Japan Co., Ltd. as its subsidiaries, all of which have been included in the scope of consolidation.
(Application of Special Accounting Methods to the Preparation of Quarterly Consolidated Financial Statements)(Calculation of tax expenses)

Tax expenses are calculated by multiplying the net profit before income taxes by a reasonably evaluated effective
tax rate on the net profit before income taxes for the consolidated fiscal year including the current first quarter
consolidated fiscal period.

(Segment Information)
I Previous first quarter consolidated cumulative period (April 1, 2022 – June 30, 2022)
1. Information on net sales and profit/loss of each reportable segment(thousand yen)

Mobility Support
Business
Net sales
Sales to external customers
Inter-segment sales or transfer
Total
Segment profit (loss)
Depreciation
Amortization of goodwill
EBITDA (see Note)

Reportable segments
Advertisement
M&A/Incubation
PlatformBusiness
Business

398,183－
398,183
108,495
13,451
431
122,379

Total

－
－
－
－
－
－
－

372,649－
372,649(2,441)
16,672
11,52825,759770,832－
770,832
106,054
30,124
11,960148,138

Note: EBITDA = Segment profit (loss) + Depreciation + Amortization of goodwill

2. Difference between the total amount of profit or loss of reportable segments and the amount presented on the
Quarterly Consolidated Statements of Income; and main contents of said difference (items in relation toadjustment of difference)(thousand yen)

ProfitAmountReportable segments total

106,054

Corporate expenses (see Note)(77,616)

Operating profit (loss)
on the Quarterly Consolidated Statements of Income

28,437

Note: Corporate expenses comprises of general and administrative expenses not attributable to reportable segments.

3.

Information on impairment loss of non-current assets or goodwill, etc., for each reportable segment
Not applicable.

6

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024

II Current first quarter consolidated cumulative period (April 1, 2023 – June 30, 2023)
1. Information on net sales and profit/loss of each reportable segment(thousand yen)

Mobility Support
Business
Net sales
Sales to external customers
Inter-segment sales or transfer
Total
Segment profit (loss)
Depreciation
Amortization of goodwill
EBITDA (see Note)

Reportable segments
Advertisement
M&A/Incubation
PlatformBusiness
Business371,158438
371,597
80,86012,673－93,533363,884－
363,884(49,923)
22,216
13,695(14,011)

Total

264,308－
264,308
2,852
1,582
3,616
8,051

999,351
438
999,790
33,79036,472
17,311
87,574

Note: EBITDA = Segment profit (loss) + Depreciation + Amortization of goodwill

2. Difference between the total amount of profit or loss of reportable segments and the amount presented on the
Quarterly Consolidated Statements of Income; and main contents of said difference (items in relation toadjustment of difference)(thousand yen)

ProfitAmountReportable segments total

33,790

Corporate expenses (see Note)(76,428)

Operating profit (loss)
on the Quarterly Consolidated Statements of Income(42,638)

Note: Corporate expenses comprises of general and administrative expenses not attributable to reportable segments.

3.

Information on impairment loss of non-current assets or goodwill, etc., for each reportable segment

During the first consolidated fiscal period, EKITAN I&I Co., Ltd. was established, which thereafter acquired
shares of Growth and Communications Co., Ltd., Cybernet Co., Ltd., and Information Technology Japan Co.,
Ltd., all of which have been included in the scope of consolidation.
Consequently, amount of assets of reportable segments of the Company during the current first quarter
consolidated fiscal period increased by 829,254 thousand yen for the newly added “M&A/Incubation Business”
as compared to the end of the previous consolidated FY.
4.

Information on changes in reportable segments, etc.
From the current first quarter consolidated fiscal period, in association with establishment of EKITAN I&I
Co., Ltd. which jointly manages “M&A/Incubation Business” of the Group, reportable segments have been
categorized as “Mobility Support Business”, “Advertisement Platform Business” and “M&A/Incubation
Business”, which were previously categorized as “Mobility Support Business” and “Advertisement Platform
Business”.
It should be noted that segment information for the previous first quarter consolidated cumulative period isdisclosed based on the categories of reportable segments after such change.

5.

Information on impairment loss of non-current assets or goodwill, etc., for each reportable segment(Significant changes in amount of goodwill)In the “M&A/Incubation Business” segment, during the first consolidated fiscal period, EKITAN I&I Co.,
Ltd. acquired shares of Growth and Communications Co., Ltd., Cybernet Co., Ltd., and Information Technology
Japan Co., Ltd., all of which have been included in the scope of consolidation. Meanwhile, this event caused
increase in the amount of goodwill by 68,961 thousand yen in the first quarter consolidated cumulative period.

7

EKITAN&Co., Ltd. (3646)

FOR TRANSLATION PURPOSE ONLY

Summary of Consolidated Financial Results for the First Quarter of FY03/2024(Significant Post-Balance Sheet Events)(Disposal of treasury stock as stock compensation with transfer restrictions)
The Company, at its board meeting on July 21, 2023, decided to dispose its treasury stock as stockcompensation with transfer restrictions.
1. Overview of disposal(1)

Date of disposal

August 15, 2023

(2)Type and number of shares to be disposed

Common stock of the Company: 4,800 shares(3)

Disposal amount

439 yen per share(4)

Total disposal amount

2,107,200 yen(5)

Allottees, number of them,and number of shares to be disposed

2 directors of the Company’s consolidated subsidiaries:
4,800 shares

2. Purpose and reason for disposal
The Company, at its board meeting on May 20, 2022, decided to adopt a system of stock compensation withtransfer restrictions (hereinafter referred to as “the System”) with the purpose of encouraging the Company’s
directors (excluding external directors) (hereinafter referred to as “Eligible Directors”) and the Group’s officers(hereinafter collectively referred to as “Eligible Directors/Officers”) to raise their awareness of contribution to theCompany’s sustained enhancement of its corporate value, and promoting value sharing among Eligible
Directors/Officers and the Company’s shareholders. On July 20, 2022, the Company provided Eligible Directors
with monetary compensation receivable and common shares as monetary compensation which shall be contributed
properties for purchasing stock with transfer restrictions.
This time, the Company decided to add two directors of its consolidated subsidiaries as Eligible Directors of
this System. In addition, for the purpose of giving them the same preconditions as other Eligible Directors withwhom the abovementioned privileges are already provided, term of transfer restriction is set as two years.
Concerning this disposal of treasury stock, the two Eligible Directors to be allotted shares are going to pay theentire monetary compensation receivables as their in-kind contributed properties, and then common shares of theCompany will be allotted to them.

8