November 14, 2022
Dear all,Company name:

SUNCORPORATIONName of representative: Ryusuke Utsumi,
CEO(Code No. 6736 TSE Standard)Contact:

Yoshimi Kimura,Senior Managing Director(Tel 052-756-5981)

Notice of Our Consolidated Subsidiary’s Change into an Equity Method Affiliate
Our consolidated subsidiary Cellebrite DI Ltd. (“Cellebrite”) is expected to change into an equity method affiliate
from October 1, 2022.
１． Reasons for the change.
Cellebrite issues options (RSUs) to employees, which causes dilution of shares.
Although we held 50.5% of Cellebrite's shares at the end of March 2022, the aforementioned dilution resulted ina shareholding of 49.8% at October 1st, 2022.
As a result, for the fiscal year ending in March 2023, Cellebrite will remain in the income statement as aconsolidated subsidiary until the 3rd quarter of the fiscal yeaer, but will be excluded from the BS from the end of
the 3rd quarter, and will become an equity method affiliate from the 4th quarter.

２． An Overview of Cellebrite(1)

NameCellebrite DI Ltd(2)

Location.

94 Shlomo Shmeltzer Rd.,Park Ezorim,P.O.B. 3925Petah Tikva 4970602 Israel(3)

Title and name ofrepresentative

Yossi Carmil, CEO(4)

Business activities

Development and sale of digital solutions(5)

Capital1,345 NIS (¥28,662,000)(6)Date of Establishment

April, 1999
Ordinary Shares(7)

Major shareholders

SUNCORPORATION: 50.5%.

and shareholding

IGP SAFERWORLD LIMITED PERTNERSHIP：17.2%

ratiosCEDE & CO (FAST ACCOUNT)：12.4%
Preferred shares have been converted into ordinary shares.

(8)
(9)

The relationship withthe listed company

capital ties

Investment is made as described in (7) above.

Human resources

Two directors serve concurrently as directors of Cellebritebusiness relations

Cellebrite is SUNCORPORATION’s supplier

Consolidated operating results and consolidated financial position of the company concerned.

Net Assets
Total Assets
Net assets per share
Sales amountOperating profits
Ordinary profits

Fiscal Year ended in

Fiscal Year ended in

Fiscal Year ended in

December 2019

December 2020

December 2021

USD 151,615,000

USD 164,591,000

USD(57,563,000)(¥16,611,007,000)(¥17,035,186,000)(¥-6,620,974,000)

USD 303,935,000

USD 364,527,000

USD 349,020,000(¥33,299,159,000)(¥37,728,595,000)(¥40,144,394,000)

USD 1.04

USD 0.97

USD (-0.36)(¥113.50)(¥99.98)(-¥40.99)

USD 171,612,000

USD 195,160,000

USD 246,294,000(¥18,801,916,000)(¥20,199,098,000)(¥28,328,737,000)

USD (2,124,000)

USD 8,383,000

USD 11,945,000(¥-232,800,000)(¥867,724,000)(¥1,374,011,000)

USD 1,207,000

USD 10,657,000

USD 98,571,000(¥132,291,000)(¥1,103,078,000)(¥11,337,648,000)

Net profit for the fiscal year

(SUNCORPORATION(SUNCORPORATION(SUNCORPORATION

attributable to shareholdersAttribution)

Attribution)

Attribution)of the parent company

USD (1,305,000)

USD 2,957,000

USD 47,333,000(¥-142,938,000)(¥306,064,000)(¥5,444,334,000)(Cellebrite attribution)(Cellebrite attribution)(Cellebrite attribution)

USD (1,697,000)

USD 4,176,000

USD 87,597,000(¥-185,990,000)(¥432,234,000)(¥10,075,498,000)(SUNCORPORATION(SUNCORPORATION(SUNCORPORATION

Attribution)

Attribution)

Attribution)(USD -0.06)

USD 0.13

USD 1.98(-¥6.33)(¥13.42)(¥227.48)(Cellebrite attribution)(Cellebrite attribution)(Cellebrite attribution)(USD -0.01)

USD 0.02

USD 0.54(-¥1.27)(¥1.8)(¥62.37)

USD 0.06

USD 0.57(¥6.5)(¥62.7)

Net profit per share

Dividend per share-Note: The above figures are after consolidation adjustments.

３． Future outlook
Although Cellebrite will change into an equity method affiliate due to the share dilution caused by the shareholding
ratio change, we will remain a major shareholder as before and will continue to work with Cellebrite as one of ourgroup companies.
While the impact includes the exclusion of Cellebrite’s sales from our consolidated sales figures from the fiscal
year ending in March 2023, there will be no impact on our business performance.