Summary of Financial Results for the Second Quarter Ended February 28, 2022
[Japan GAAP] (Consolidated)
April 11, 2022
Company
Stock Code
Representative
Contact

Watts Co., Ltd.

Listed on the TSE

2735
URL: https://www.watts-jp.com
Fumio Hiraoka, President and CEO
Hidehito Mori,T E L: +81-6-4792-3236
Executive Managing Director, Head of Corporate Planning Office
Expected date of filing of quarterly report: April 11, 2022
Expected starting date of dividend payment: Preparation of quarterly supplementary financial document: Yes
Quarterly results briefing: Yes (for institutional investors)（Rounded down to million yen）

1. Consolidated business results for the six months ended February 2022
(September 1, 2021 through February 28, 2022)(1) Consolidated results of operations(% change from the previous corresponding period)
Sales

Operating profit

Net income attributable toowners of parent

Recurring profit

Million yen% Million yen%
Six months ended Feb. 2022
28,506
11.3
637
-41.3
Six months ended Feb. 2021
25,618
-1.4
1,085
38.0
(Note) Comprehensive income
Six months ended February 2022: 361 million yen (-52.9%)
Six months ended February 2021: 766 million yen (82.1%)
Net income
Diluted net income perper share
share
Yen
Yen
Six months ended Feb. 2022
26.89
Six months ended Feb. 2021
59.72-

Million yen
678
1,066

%
-36.4
36.2

Million yen
361
800

%
-54.8
90.2

(2) Consolidated financial position
Total assets

Net assets

Million yen
As of Feb. 2022
24,763As of Aug. 2021
21,340(Reference) Shareholders’ equity:
As of February 2022: 11,421 million yen
As of August 2021: 11,222 million yen

Million yen
11,421
11,222

Shareholders’ equity
ratio
%
46.1
52.6

2. Dividends
End of 1Q

End of 2Q
Yen
-

Yen
0.00
0.00

Year ended Aug. 2021
Year ending Aug. 2022
Year ending Aug. 2022 (forecast)(Note) Revisions to dividend forecast for the current quarter: None

Annual dividend
End of 3Q
Yen-

Year-end

-

Total

Yen
22.00

Yen
22.00

15.00

15.00

3．Forecast of consolidated business results for the fiscal year ending August 2022
(September 1, 2021 through August 31, 2022)(% change from the previous corresponding period)
Sales
Million yen

Operating profit%

Million yen%

Year ending Aug. 2022
18.7
1,035 -38.0
60,200(Note) Revisions to business forecast for the current quarter: None

Recurring Profit
Million yen

955

%

-39.8

Net income attributableto owners of parent
Million yen

510

Net income
per share

%

Yen

-47.2

38.07

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes inthe scope of consolidation): Yes
Newly included: 1 (Ontsu F.RETAIL Co., Ltd.)(2) Application of accounting procedures specific to preparation of the consolidated quarterly financial statements:
None(3) Changes in accounting policies, accounting estimates and restatement①Changes in accounting policies associated with revision of accounting standards:②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: Yes: None: None: None(4) Shares outstanding (common stock)① Number of shares outstanding at the end of period (treasury stock included)
As of February 2022
13,898,800 shares
As of August 2021
13,958,800 shares② Treasury stock at the end of period
As of February 2022
322,487 shares
As of August 2021
560,874 shares③ Average number of stock during period (quarterly cumulative period)
Six months ended February 2022
13,439,316 shares
Six months ended February 2021
13,397,926 shares(Note) The number of treasury stock at the end of period includes the Company’s shares held by the share issuance trust for directors(FY8/22 2Q: - shares, FY8/21: 60,000 shares). In addition, the Company's shares owned by the share issuance trust for
directors are included in treasury stock deducted for calculation of the average number of shares during period (FY8/22 2Q:
56,354 shares, FY8/21 2Q: 60,000 shares).

*Quarterly financial summary is not subject to auditing procedures by certified public accountants or auditing firms.
*Explanation regarding appropriate use of business forecasts and other special instructions(Caution concerning forward-looking statements)
The forward-looking statements regarding future performance in this material are based on information currently available
to the company and certain assumptions that the company deems to be reasonable at the time this report was prepared.
Therefore, the company does not make promises about the achievements. Actual results may differ significantly from theforecasts due to various factors.
Please refer to “(3) Future forecast information including consolidated business forecasts” of “1. Results of operations” onpage 3 for the suppositions that form the assumptions for business forecasts and cautions concerning the use of business
forecasts.

1. Results of Operations(1) Analysis of operating results…………………………………………………………………………………………………. 2(2) Analysis of financial position………………………………………………………………………………………………… 3(3) Future forecast information including business forecasts…………………………………………………………………….. 3
2. Quarterly Consolidated Financial Statements…………………………………………………………………………………….. 4(1) Quarterly Consolidated Balance Sheets……………………………………………………………………………………….. 4(2) Consolidated Statements of Income and Statements of Comprehensive Income……………………………………………. 6
Quarterly consolidated statements of income
Second quarter………………………………………………………………………………………………………….. 6
Consolidated statements of comprehensive income
Second quarter………………………………………………………………………………………………………….. 7(3) Quarterly Consolidated Statements of Cash Flows……………………………………………………………………………. 8(4) Notes to consolidated financial statements……………………………………………………………………………………. 9(Notes on going concern assumption)……………………………………………………………………………………….. 9(Notes if there is a significant change in the amount of shareholders' equity)………………………………………………. 9(Changes in accounting policies)…………………………………………………………………………………………… 9(Important subsequent events)……………………………………………………………………………………………… 9

1

1. Results of Operations(1) Analysis of operating results
During the six months ended February 2022, COVID-19 still had an impact on the Japanese economy. Although businessactivity was expected to be invigorated as the fifth wave of the infection was contained, the recovery in economic activity wasdelayed as the local governments intermittently declared the stricter COVID-19 measures in 36 prefectures, following thesixth wave since the beginning of the year. Besides, logistics disruption caused by the tight supply-demand balance andsoaring prices of resources and grains caused a sharp rise in business goods prices, leading to pass on costs to downstream
prices. Furthermore, the Japanese economy became even more confused, as the U.S. indicated an interest rate hike after
March, the yen depreciated against the U.S. dollar, and Russia's invasion of Ukraine in late February raised concerns about theworldwide progression of stagflation reflecting further cost inflation.
Given this environment, in addition to the 100-Yen shop business in Japan, the Company, which operates the “Watts”,“Watts with”, “meets.”, “silk”, etc., has been working on diversifying its revenue sources by undertaking other domestic
businesses, centering on the sale of life-style goods and discount goods as well as overseas business.
In the domestic 100-Yen shop business, the Company reopened its online shop on September 1, 2021, and substantially
increased the product lineups by approximately 10 times to more than 10,000 items. We also began handling Buona Vita
products. In addition, we are introducing self-checkout POS registers to improve in-store productivity through more efficientpurchase process. We are also working to introduce and renew handmade tools and materials sections to further develop
existing shops.
As for new shop openings, the Company opened 97 shops to the full-year plan of 230 shops. Furthermore, on October 1, theCompany acquired all shares of Ontsu F･RETAIL Co., Ltd., which operates 145 100-Yen shops named “FLET’S”etc.,(including 5 FC shops), making it a subsidiary. There were 27 shop closings (including 3 franchised shops), including certain
unprofitable shops and unpredictable closing of shops where the Company’s shops were located in. As a result, the total
number of 100-Yen shops at the end of the second quarter was 1,579, which includes 1,554 directly managed shops (netincrease of 213), and 25 franchised/other shops (net increase of 2). Of these, the number of "Watts" and "Watts with", theWatts brand shops, increased to 932 (net increase of 107), accounting for about 60% of the total.
As for the domestic other business, “Buona Vita,” a life-style goods shop offering comfortable life, opened 1 consignment
shop in our 100-Yen shop to supplement the "fashionable taste" to the 100-Yen shop and enhance synergy between
businesses. At the end of the second quarter, the number of Buona Vita shops was 22 (net increase of 1). "Tokino:ne", ahousehold items shop under the theme of “time” was 1 shop (unchanged). “Value- 100,” the fresh-foods supermarket
collaboration was 1 shop (unchanged). "Real", a discount shop, was 6 shops (unchanged).
Regarding the overseas operation, the Company operates “KOMONOYA”, a fixed-price shop mainly in Southeast Asia. At
the end of the second quarter, “KOMONOYA” operates 40 shops in Thailand (net decrease of 1), and 14 shops in Peru (netdecrease of 5). We closed 2 shops in Malaysia and 3 shops in Vietnam. In China, a fixed price shop “小物家园”(KOMONOKAEN) was 4 shops (unchanged). The total number of own-brand shops “KOMONOYA” and “小物家园”(KOMONOKAEN) was 58 (net decrease of 11).
Through the acquisition of 100-Yen shop operators Ontsu F･Retail Co., Ltd. and Nippan Co., Ltd., sales increased to28,506 million yen (up 11.3% YoY, 97.1% to the plan) for the six months ended February 2022.
On the other hand, due to the slow growth in the 100-Yen shop same-store sales at 96.6% YoY and amortization of
goodwill from M&A, operating profit was 637 million yen (down 41.3% YoY, 135.6% to the plan) and recurring profit was
678 million yen (down 36.4% YoY, 161.6% to the plan).
Net income attributable to owners of parent was 361 million yen (down 54.8% YoY, 168.1% to the plan) as Hilmer Japan
Co., Ltd., a consolidated subsidiary of the Company, recorded a dept exemption gain due to the exemption of loans from ajoint venture company upon its withdrawal from the business. (*Year on year: comparison with the results for the same periodof the previous fiscal year. Ratio to plan: ratio to the business forecasts for the six months ended February 2022 which wereannounced in the Summary of Financial Results on Tuesday, October 12, 2021.)
Since the Group operates under a single segment consisting of the operation of 100-Yen shops associated business,segment information is omitted.

2(2) Analysis of financial position①Assets, liabilities and net assets(Assets)
As of the end of the second quarter of the current fiscal year, current assets stood at 17,823 million yen, increased by
1,773 million yen from the end of the previous fiscal year. This was mainly due to increases of 1,334 million yen formerchandise and finished goods and 355 million yen for cash and deposits.
Fixed assets stood at 6,940 million yen, increased by 1,649 million yen from the end of the previous fiscal year. This was
mainly due to an increase of 592 million yen in goodwill associated with the acquisition of Ontsu F･Retail Co., Ltd. andNippan Co., Ltd., as well as increases of 464 million yen in guarantee deposits, 286 million yen in buildings and structures,and 242 million yen in tools, furniture and fixtures.
As a result, total assets stood at 24,763 million yen, increased by 3,422 million yen from the end of the previous fiscal year.
(Liabilities)
As of the end of the second quarter of the current fiscal year, current liabilities stood at 9,376 million yen, increased by
755 million yen from the end of the previous fiscal year. This was mainly due to increases of 489 million yen in notes andaccounts payable-trade and 332 million yen in electronically recorded obligations.
Fixed liabilities stood at 3,966 million yen, increased by 2,467 million yen from the end of the previous fiscal year. Thiswas mainly due to increases of 2,158 million yen in long-term loans payable and 184 million yen in asset retirement
obligations.
As a result, total liabilities stood at 13,342 million yen, increased by 3,223 million yen from the end of the previous fiscal
year.
(Net assets)
As of the end of the second quarter of the current fiscal year, net assets stood at 11,421 million yen, increased by 199
million yen compared with the end of the previous fiscal year. This was mainly due to an increase of 65 million yen inretained earnings and a decrease of 139 million yen in treasury stock resulting from the retirement of treasury stock and thedisposal of treasury stock as restricted stock compensation. As a result, shareholders’ equity ratio stood at 46.1% (52.6% at
the end of the previous fiscal year).
② Cash flows
Cash and cash equivalents (hereinafter referred to as “cash”) at end of the current second quarter of the fiscal year
amounted to 6,524 million yen, increased by 355 million yen from the previous fiscal year.
Details and breakdown of each cash flow in the second quarter are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 915 million yen (1,802 million yen was provided in the same period of theprevious fiscal year). This was mainly due to income before income taxes and minority interests of 637 million yen, adecrease in notes and accounts receivable-trade of 435 million yen, and depreciation and amortization of 267 million yen.
Cash was used mainly for income taxes paid of 395 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 570 million yen (409 million yen was used in the previous fiscal year). This was
mainly due to payments for lease and guarantee deposits of 495 million yen and payments for purchase of property, plantand equipment of 195 million yen for new shop openings, etc.
(Cash flows from financing activities)
Net cash provided by financing activities was 0 million yen (392 million yen was used in the previous fiscal year). Thiswas mainly due to long-term loans payable of 2,900 million yen, repayments of long-term loans payable of 2,393 million
yen, cash dividends paid of 295 million yen, and a net decrease in short-term loans payable of 200 million yen.
(3) Future forecast information including business forecasts
The Company made no change to the full-year business forecasts announced in the summary of financial results dated
October 12, 2021.

3

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)Previous fiscal year
(August 31, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Raw materials and supplies
Consumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
VehiclesAccumulated depreciation and impairment loss
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation and impairment loss
Leased assets, net
Total property, plant and equipment
Intangible assets
Amortization of goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

4

Current second quarter(February 28, 2022)

6,169,208
2,150,910
7,431,457
12,12375,956
232,481-22,483
16,049,656

6,524,818
2,157,137
8,766,334
39,96022,573335,019-22,359
17,823,483

2,055,446-1,313,149
742,297
26,266-20,833
5,432
3,729,454-3,184,361
545,092
257,800
27,623-26,034
1,589
1,552,212

3,803,957-2,775,184
1,028,772
29,788-23,1386,650
4,734,592-3,946,849
787,743
257,800
113,024-96,736
16,2882,097,254

12,395599,833
612,229604,654618,846
1,223,500

327,430
393,3902,289,987
123,665-7,574
3,126,899
5,291,340
21,340,997

322,389
393,9532,754,912
156,805-8,3973,619,662
6,940,417
24,763,901

(Thousands of yen)

Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Retirement benefit liability
Provision for directors’ retirement benefits
Provision for directors' stock-based benefits
Asset retirement obligations
Other
Total noncurrent 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
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

5Previous fiscal year
(August 31, 2021)

Current second quarter(February 28, 2022)

3,118,081
3,145,453
200,000
528,247
396,644
129,894
186,679
915,676
8,620,678

3,607,979
3,477,493
766,702284,328
153,634
190,669
895,575
9,376,383

396,084
324,078
30,22393,938424,171229,683
1,498,180
10,118,858

2,554,932
403,743
32,315609,023
366,136
3,966,151
13,342,535

440,297
1,354,136
9,729,641-273,120
11,250,955

440,297
1,348,550
9,794,919-133,386
11,450,380

9,615-38,432-28,817
11,222,138
21,340,997

6,830-35,845-29,014
11,421,366
24,763,901

(2) Consolidated Statements of Income and Statements of Comprehensive Income(Quarterly consolidated statements of income)(Second quarter)

Previous second quarter(from September 1, 2020
to February 28, 2021)
Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating revenues
Interest income
Foreign exchange gains
Royalty income
Compensation income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Early-withdrawal penalty
Share of loss of entities accounted for using equity
methodCompensation expenses
Other
Total non-operating expenses
Recurring profit
Extraordinary income
Surrender value of insurance
Gain on sale of investment securities
Gain on sales of noncurrent assets
Insurance claim income
Gain on debt exemption
Provision for directors' stock-based benefits
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Impairment loss
Loss on disaster
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income attributable to owners of parent

6(Thousands of yen)
Current second quarter(from September 1, 2021
to February 28,2022)

25,618,481
15,736,583
9,881,897
8,796,513
1,085,384

28,506,628
17,592,437
10,914,191
10,277,039
637,151

779
1,346
2,040
1,442
2,117
5,419
13,146

1,126
32,927
1,414
5,016
15,247
7,587
63,3201,517
1,320
24,252

4,979
5,760
1,275

4,525
31,615
1,066,914

7,435
2,302
21,753
678,718

4,974
3,403
232
8,532
291,302308,446

6,246
29,77736,023

1,651
150,464
152,115
1,223,245
375,190
47,922
423,112800,132
800,132

18,62556,992
1,248
76,866
637,875
276,46854
276,523
361,352
361,352

(Quarterly consolidated statements of income)(Second quarter)

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to ownersof parent

Previous second quarter(from September 1, 2020
to February 28, 2021)
800,132(Thousands of yen)
Current second quarter(from September 1, 2021
to February 28, 2022)
361,352

2,983-2,784-31,403-4,723

4,094-1,507-33,143766,988-197
361,154

766,988361,1547

(3) Quarterly Consolidated Statements of Cash Flows(Thousands of yen)
Current second quarter(from September 1, 2021
to February 28,2022)

Previous second quarter(from September 1, 2020
to February 28, 2021)
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in liabilities relating toretirement benefits
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for directors'
stock-based benefits
Increase (decrease) in provision for loss on
business liquidation
Interest and dividends income
Interest expenses
Loss (gain) on sale of investment securities
Loss on retirement of noncurrent assets
Gain on debt exemption
Decrease (increase) in accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for retirement of property, plant andequipment
Purchase of intangible assets
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Payments for asset retirement obligations
Proceeds from sale of investment securities
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayment of lease obligations
Cash dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

8

1,223,245
156,330
150,464
2,860-919-36,804
11,224

637,875
267,581
56,99254,968-1,4093,989
79,665

1,349

2,091

16,878-93,938-25,994

-

-784
1,517
-3,403
1,651-291,302
128,472-234,227
1,045,024-280,220103,504
1,968,866
1,752-8,971-159,508
1,802,138-1,2194,979
18,625435,247-156,019-2,511
48,566-40,986
1,314,498
1,199-4,787-395,619
915,291-133,113
465--195,572-14,520-289,586-43,277
38,127-83,485-495,180
31,618-40,992
8,484--5,174
191,877

50,300-409,592

300-570,138-255,810-3,143-201,472
67,500-392,926-4,503-200,000
2,900,000-2,393,092-10,192-295,916
798
9,658

995,116
6,591,348
7,586,464

355,609
6,169,208
6,524,818

(4) Notes to consolidated financial statements(Notes on going concern assumption)
No items to report(Notes if there is a significant change in the amount of shareholders' equity)
Based on a resolution of the Board of Directors meeting held on October 12, 2021, the Company disposed of 178,387 sharesof treasury stock as restricted stock compensation. The Company cancelled 60,000 shares of its treasury stock pursuant to theresolution of the Board of Directors meeting on February 21, 2022. As a result, capital surplus and treasury stock decreased by
5,586 thousand yen and 139,733 thousand yen, respectively.
As a result, at the end of the second quarter of the current fiscal year, capital surplus was 1,348,550 thousand yen andtreasury stock was 133,386 thousand yen.
(Changes in accounting policies)(Application of accounting standard for revenue recognition)
The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31,
2020; hereinafter the "Accounting Standard for Revenue Recognition") and other standards from the beginning of thefirst quarter of the current fiscal year.
The Company follows the transitional treatment stipulated in the provisions of paragraph 84 of the Accounting Standard for
Revenue Recognition. The adoption of the Accounting Standard for Revenue Recognition did not have a material impact on
the quarterly consolidated financial statements or retained earnings at the beginning of the fiscal year.
In accordance with the transitional treatment stipulated in paragraph 28-15 of the "Accounting Standard for Quarterly
Financial Statements" (ASBJ Statement No. 12, March 31, 2020), the Company has not disclosed disaggregation of revenue
from contracts with customers for the second quarter of the previous fiscal year.
(Application of accounting standard for calculation of fair value)
The Company has applied the Accounting Standard for Calculation of Fair Value (ASBJ Statement No. 30, July 4, 2019,
hereinafter referred to as the "Accounting Standard for Calculation of Fair Value") and other standards from the beginning of
the first quarter of the current fiscal year. The Company has decided to apply the new accounting policy stipulated by the
Accounting Standard for Calculation of Fair Value, etc. in accordance with the transitional treatment stipulated in paragraph
19 of the Accounting Standard for Market Value and paragraph 44-2 of the Accounting Standard for Financial Instruments(ASBJ Statement No. 10, July 4, 2019). There is no impact on the quarterly consolidated financial statements.
(Important subsequent events)(Issuance of stock acquisition rights as stock options)
At the Board of Directors meeting held on March 22, 2022, the Company approved the issuance of stock acquisition rights
as stock options to directors of its subsidiaries and to employees of the Company and its subsidiaries on April 11, 2022.
(1) Reasons for issuing stock acquisition rights as stock options
The Company issued the stock acquisition rights to the directors of its subsidiaries and employees of the Company andits subsidiaries for the purpose of further increasing their motivation to contribute to the Company's group performanceand corporate value over the medium to long term.
When the stock acquisition rights are exercised, treasury stock will be allocated.
(2) Outline of the issuance of the stock acquisition rights① Issuance date of stock acquisition rights
April 11, 2022
② Category and number of grantees
A total of 102 directors of the Company’s subsidiaries and employees of the Company and its subsidiaries③ Number of stock acquisition rights issued
1,246④ Amount to be paid for stock acquisition right
There is no requirement for monies to be paid in⑤ Class and number of shares to be issued upon exercise of stock acquisition rights
124,600 shares of common stock of the Company (100 shares per stock acquisition right)

9

⑥ Payment amount at the time of exercise of subscription rights
735 yen per share⑦ Amount of capital stock and capital reserve to be increased when shares are issued upon exercise of stock acquisition rights
i) The amount of capital stock and capital reserve to be increased when shares are issued upon exercise of stockacquisition rights shall be half of the maximum amount of increase in capital stock, etc., as calculated inaccordance with Paragraph 1 of Article 17 of the Rules for Corporate Accounting. Any fraction of less than one
yen resulting from the calculation shall be rounded up to the nearest one yen.
ii) The amount of capital reserve to be increased when shares are issued upon exercise of stock acquisition rights shallbe the amount obtained by subtracting the amount of capital to be increased as set forth in i) above from the
maximum amount of increase in capital, etc. as set forth in i) above.
⑧ Conditions for exercise of stock acquisition rights
i) Holders of the stock acquisition rights are required to be in the position of directors or employees of the Company or
its subsidiaries at the time of exercise of the rights. However, this shall not apply in the case of retirement due toexpiration of term of office, mandatory retirement age or retirement for company reasons, or other cases where theBoard of Directors deems there to be a justifiable reason.
ii) Inheritance of stock acquisition rights shall not be permitted.
iii) Each stock acquisition right may not be partially exercised.
iv) Other conditions shall be as set forth in the "Stock Acquisition Rights Allotment Agreement" to be concluded
between the Company and the holders of stock acquisition rights based on the resolution of the Board of
Directors.
⑨ Period for exercise of subscription rights
From April 11, 2024 to April 10, 202810