Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Consolidated Earnings Report for the First Nine Months of Fiscal 2021
[Japanese GAAP]
August 3, 2021
Company Name:EPS Holdings, Inc.
Stock Listing:First Section, Tokyo Stock Exchange
Code Number:
4282
URL:
http://www.eps-holdings.co.jp
Representative Director:
Yan Hao, Chairman & CEO
Inquiries:
Kazuki Sekitani, Board Member, Vice President and Corporate OfficerTel:+81-3-5684-7873
Filing of Quarterly Securities Report:
May 15, 2021
Scheduled Payment of Dividends:
June 8, 2021
Supplementary explanatory materials prepared: None
Explanatory meeting:None(¥ millions are rounded down)

1. Consolidated Results for the First Nine Months of Fiscal 2021 (October 1, 2020 to June 30, 2021)(1) Consolidated Operating Results(¥ millions; percentage figures represent year-on-year changes)
First Six Months

Net sales

Operating income

Profit attributable toowners of parent

Recurring profit

Fiscal 2021
53,531
10.4%
5,280
66.3%
5,672
73.0%
3,146
Fiscal 2020
48,481 (3.3%)
3,174(17.2)%
3,279 (15.8)%
2,077
Note: Comprehensive income: June 30, 2021: ¥3,713 million [170.6%], June 30, 2020: ¥1,372 million [(40.9)%]First Six Months

Profitper share (¥)

Fiscal 2021
Fiscal 2020

71.26
45.98

Profitper share (diluted)(¥)－－(2) Consolidated Financial Position
Total assets(¥ millions)
Equity ratio
(%)
57.2
62.6

Net assets

June 30, 2021
80,42449,255September 30, 2020
70,45846,939Note: Equity: June 30, 2021: ¥45,981 million, September 30, 2020: ¥44,106 million

2.

51.5%
1.2%

Dividends

Dividend per share (¥)
First Quarter

Second Quarter

Third Quarter

Fiscal 2020

－

10.00

－

10.00

20.00

Fiscal 2021

－

12.50
－

0.00

12.50

Fiscal 2021 (forecast)
Note: Revisions to recent dividend forecasts: None

Year End

Full Year

Notes: The Second Quarter dividend for fiscal 2021 includes commemorative dividend of 2.5 yen per share.

3.

Forecast of Consolidated Results for Fiscal 2021 (October 1, 2020 to September 30, 2021)
Net sales
Full year

75,00012.5%(¥ millions; percentage figures represent year-on-year changes)
Profit attributable toProfitOperating income
Recurring profit
owners of parent
per share (¥)
5,500

20.8%

5,900

18.5%

3,300

65.4%

74.67

Note: Revisions to recent consolidated results forecasts: None
*Notes(1) Changes to important subsidiaries during the first six months changes in specified subsidiaries resulting in revised
scope of consolidation: None
(2) Application of special accounting methods in the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting principles, accounting estimates and restatements
a. Changes in accounting policies in conjunction with revisions to accounting standards: Noneb. Other changes: Nonec. Changes in accounting estimates: None
d. Restatements: None
(4) Number of shares issued (common stock)a. Number of shares issued at end of
Fiscal 2021, 3Q end
period (including treasury stock):

46,311,389 Fiscal 2020 end

46,311,389

b. Number of treasury stock at end of
period:Fiscal 2021, 3Q end

2,122,003 Fiscal 2020 end

2,212,221c. Average number of stock during theperiod:Fiscal 2021, 3Q

44,162,175 Fiscal 2020, 3Q

45,188,533

Note: The number of treasury shares at end of period includes 93,090 shares of the Company held by EPS EKISHIN Co., Ltd.
* This financial report is outside the scope of the quarterly audit reviews performed by certified public accountants or
auditing firms.
* Explanation concerning the appropriate use of financial forecasts and other notable matters.

Earnings forecasts and other forward-looking statements in this report are based on data currently available to management andcertain assumptions that management believes are reasonable. Actual results may differ materially from these statements for various
reasons.

2

Table of Contents of Supplementary Materials
1. Qualitative Information Concerning Quarterly Financial Statements ··························································· 2(1) Explanation Regarding Consolidated Operating Results ····································································· 2(2) Explanation Concerning Forward-Looking Statements such as Consolidated Financial Forecasts ·····················4
2. Quarterly Consolidated Financial Statements and Main Notes ·································································· 5(1) Quarterly Consolidated Balance Sheets ························································································· 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ··············································· 7
Quarterly Consolidated Statements of Income(The six months ended June 31, 2021) ····················································································· 7
Quarterly Consolidated Comprehensive Income(The six months ended June 31, 2021) ···················································································· 8(3) Notes Concerning Quarterly Consolidated Financial Statements ·························································· 9(Note Concerning the Going Concern Assumption) ······································································· 9(Note Concerning Significant Changes in the Amount of Shareholders’ Equity) ···································· 9(Segment Information) ········································································································· 9(Important Subsequent Events) ··························································································· 10

11. Qualitative Information Concerning Quarterly Financial Statements(1) Explanation Regarding Consolidated Operating Results
Overview of Operating Results for the Nine Months Ended June 30, 2021
The First Nine Months of
Fiscal 2020
Amount%(¥ millions)

The First Nine Months of
Fiscal 2021
Amount%ChangeAmount%Net sales

48,481

100.0

53,531

100.0

5,049

10.4

Operating income

3,174

6.5

5,280

9.9

2,105

66.6

Recurring profit

3,279

6.8

5,672

106

2,392

73.0

Profit attributableto owners ofparent

2,077

4.3

3,146

5.9

1,069

51.5

Forward-looking statements contained in this document are based on the judgment of operating results as of June 30,
2021.
In the nine months ended June 30, 2021, both consolidated net sales and consolidated operating income for the entire
Group were solid, and COVID-19 had only a slight impact on each business.
The Domestic Business reported year-on-year increases in sales and income, with the Contract Research Organization(CRO) Business maintaining high utilization rates especially for monitoring, the Site Management Organization (SMO)
Business gradually being less impacted by COVID-19 in terms of the limitation of visits to medical institutions outsidemajor metropolitan areas and decline in patients visiting hospitals, and the Contract Sales Organization (CSO) Businesslaunching drug information (DI) services* and COVID-19 related services using contract medical representatives (MR)and also making steady progress with other services.
In the Overseas Business, the Global Research Business reported lower sales and income, reflecting the fiercelycompetitive environment for winning orders. The EKISHIN (China) Business temporarily suspended the operation of
manufacturing lines in China in the first quarter of the previous fiscal year. The segment subsequently achieved sales
growth following the resumption of operations, but incurred expenses for responding to the tightening of regulations in
China.
As a result, consolidated net sales were ¥53,531 million, up 10.4% year on year.
Consolidated operating income rose 66.3% year on year, to ¥5,280 million, reflecting profit growth from increased net
sales and the effect of reduced administrative expenses through cost structure reforms.
Operational segments are outlined as follows.
*Drug Information (DI) services: Call center services making the latest drug information available to health care
professionals
Segment Overview
The Group primarily operates businesses in the following five segments (three domestic segments and two overseas
segments).
(¥ millions)
The First Nine
The First Nine
Months ofMonths of
ChangeFiscal 2020
Fiscal 2021
2,664
Net sales
21,75624,421
CRO
Operating income
2,767
5,005
2,237
Domestic
Net sales
9,961
10,280318
SMO
Business
327
Operating income
1,234
1,562
Net sales
8,632
9,648
1,015
CSO
478
Operating income
720
1,199
Net
sales
2,655
2,262
(402)
GlobalResearch(187)
Operating income
124(63)
Overseas
EKISHIN
737
Net sales
6,046
6,784
Business(China)Operating income (loss)
(251)
(145)
106
Business
1) CRO Business
The CRO Business is conducted mainly by EPS Corporation, EP-CRSU Co., Ltd., and EP Mediate Co., Ltd. In
this business, the Group aims to build an EPS platform which provides total solutions, and is engaged in a range ofinitiatives including the establishment of new services such as the creation of a virtual clinical trial framework2

(Virtual Go) and the acquisition of new knowledge through joint research with academia.
On June 30, 2021, the Company completed the acquisition of CAC Croit Corporation (now EP Croit Co., Ltd), a
CRO with expertise in information technology (IT), and by comprehensively utilizing the safety information
management support knowhow and system development capabilities of EP Croit Co., Ltd, the Group aims to provide
a wide range of support for safety information services.
Net sales in this segment came to ¥24,421 million, an increase of ¥2,664 million, or 12.2%, year on year, andsegment operating income was ¥5,005 million, rising ¥2,237 million, or 80.8%, year on year.
Performance in the CRO Business by service is as follows.
Clinical trials and post-marketing surveillance (PMS) services
Factors including a high volume of orders received through alliances with multiple partners going beyond
expectations, continuously high utilization rates of monitoring and data science services, and higher efficiency of
low-profitability projects in data science operation resulted in growth in both sales and income.
Clinical research services
The Group is focusing on strengthening its service framework in face of increasingly diverse clinical research aswell as on enhancing support services from upstream to downstream processes and strengthening sales. Clinicalresearch services showed gains in sales and income, reflecting brisk inquiries centered on academic projects
including investigator-initiated clinical trials, high utilization rates in clinical research monitoring services, and theeffects of cost reductions.
Medical device and other services
The Group is seeking to integrate medical device services and CRO for health-functional food services tostrengthen the non-pharmaceutical CRO business. Compared with the same period of the previous year, medical
device services achieved steady sales expansion in line with market growth. Meanwhile health-functional food services
posted year-on-year growth in both sales and income, reflecting an increase in orders mainly for functional foods..

2) SMO Business
The SMO Business is undertaken by EP-SOGO Co., Ltd.
In this business, the Group is striving to secure orders through proposal-based sales activities for existing and newservices targeting clinical trial sponsors and through alliance contracts, and actively executing regional strategies
such as concentrating resources on preferred facilities with good patient recruitment rates, among others.
Net sales in this segment were ¥10,280 million, a decrease of ¥318 million, or 3.2%, year on year. Segment
operating income was ¥1,562 million, rising ¥327 million, or 26.6%, year on year.
In terms of operations, the Group is seeking to increase the efficiency of clinical trials and improve productivity
by promoting the remote review system of the Institutional Review Board (IRB) through the digitalization of clinical
trial related documentation including essential documents. In addition, the Group is deploying a new business model
to alleviate the workload of clinical research coordinators (CRCs) through the central management of clinical trial
data by Site Data Managers (SDMs) assigned to medical institutions, and to rapidly recruiting clinical trial patientsand reduce clinical trial costs. Inquiries increased from the same period of the previous year and a number of projects
are in operation. Profit increased, reflecting a gradual weakening of the impact of COVID-19 in terms of thelimitation of visits to medical institutions outside major metropolitan areas and a decrease in patients visiting
hospitals, and the appropriate allocation of personnel, reduction of management expenses, and other measures taken.
*Site Data Manager (SDM): To enable CRCs to focus on dealing with clinical trial patients and medical staff andrecruiting clinical trial participants, the Group assigns a Clinical Research Associate (CRA) to a medical
institution as an SDM who is exclusively in charge of carefully assessing data and inputting data into the system.
3) CSO Business
The CSO Business is undertaken by EP-PharmaLine Co., Ltd., EP-Force Co., Ltd., and ES-Link Co., Ltd.
Net sales in this segment were ¥9,648 million, an increase of ¥1,015 million, or 11.8%, year on year. Segment
operating income was ¥1,199 million, an increase of ¥478 million, or 66.4%, year on year.
Performance in the CRO Business by service is as follows.
DI services
Sales increased, partly due to the launch of COVID-19-related services for pharmaceutical companies. Income
3also rose, as utilization increased due to such projects.
Contract MR (CMR) services
Decline in demand for CMRs spurred by the pharmaceutical industry’s ongoing MR reductions in recent years
came to an end and inquiries are also on a recovery trajectory. The Group made steady progress with the allocationof personnel to new projects and utilization rates increased. As a result, CMR services registered gains in sales.
Profit grew substantially owing to high utilization rates and promotion of remote activities.
Other services
Contracts for the preparation of academic materials increased due to an increase in web seminars. Steady progressin services such as support for post-marketing surveillance and pharmaceutical distribution management resulted in
growth in both sales and income.
4) Global Research Business
The Global Research Business comprises EPS International Holdings Co., Ltd. and its overseas group companies,
which conduct the CRO business in Japan, China and the Asia-Pacific region.
Net sales in this business were ¥2,262 million, a decrease of ¥402 million, or 15.1%, year on year. Operating
losses were ¥63 million (¥124 million in operating losses posted in the same period of the previous fiscal year).
New orders from overseas for trials within Japan were weak due to intensified competition with global CROs.
In the CRO business in China, inquiries increased in tandem with market expansion, especially at Beijing Global
Pharmaceutical Research Co., Ltd. (G&P), a Chinese CRO acquired in the previous fiscal year. However, thebusiness was affected by delay in some clinical trials.
In the Asia-Pacific region, the Group focused on winning orders for projects in each country and continued tobuild a business base.
5) EKISHIN (China) Business
The EKISHIN (China) Business comprises the two regional holding companies EPS EKISHIN Co., Ltd. and EPS(China) Co., Ltd., and related overseas Group companies.
In this business, under a solid capital and business partnership with SUZUKEN Co., Ltd., the Group provides
product-related services centered on pharmaceuticals and medical devices, international trade related services andperipheral support services and is working to further expand earnings.
Net sales in this business were ¥6,784 million, an increase of ¥737 million, or 12.2%, year on year, and operating
losses were ¥145 million (¥251 million in operating losses posted in the same period of the previous fiscal year).
In the EKISHIN (China)

Business, earnings are driven by pharmaceutical manufacturing and sales, and efforts

are also being made to strengthen profitability through the careful selection of sales channels. Looking at sales andincome, during the first quarter of the previous fiscal year, the temporary suspension of manufacturing lines had anegative impact. However, manufacturing operations have since resumed and, as a result, sales increased. In China,
too, however, the number of patients visiting medical institutions has decreased since the outbreak of the COVID19 pandemic and the negative impact on sales remains. In addition, various expenses were incurred to make
improvements in response to the tightening of regulations on pharmaceutical manufacturing in China.
(2) Explanation Concerning Forward-Looking Statements such as Consolidated Financial Forecasts
There have been no changes to the consolidated financial forecasts announced in the Consolidated Earnings Reportfor the First Six Months of Fiscal 2021 on May 7, 2021.
On July 27, 2021, the Company resolved to submit proposals regarding a share consolidation, abolition of provisions
on share units and partial amendment to the Articles of Incorporation to the Company’s extraordinary shareholders
meeting to be held on August 27, 2021.
Approval of these proposals will result in the common shares of the Company (the “Company Shares”) falling under
the delisting criteria set out in the listing rules of Tokyo Stock Exchange, Inc. (the “Tokyo Stock Exchange”).
Accordingly, the Company Shares will be delisted on September 17, 2021. Please note that, after being delisted, theCompany Shares will no longer be tradable on the First Section of the Tokyo Stock Exchange.

42. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(¥ million)

As of September 30, 2020
(Previous Fiscal Year-End)As of June 30, 2021
(End of the First Nine Months)

22,127
16,313
1,378
1,002
1,752
3,494
(159)

22,511
18,528
1,460
1,253
3,155
4,105
(180)

45,90949,834

7,244

9,437

5,984
1,438

9,631
1,722

7,422

11,353

Investments and other assets
Investment securities
Lease and guarantee deposits
Other investments and other assets

3,690
1,984
4,206

4,183
2,213
3,402

Total investments and other assets

9,880

9,799

24,54830,59070,45880,424

753
3,465
209
2,104
3,554
296
9,835

1,601
9,947
806
665
1,550
277
11,153

20,21926,002

204

150

110

53

1,767
580
636

1,697
562
2,703

3,299

5,166

23,51831,169AssetsCurrent assets
Cash and time deposits
Notes and accounts receivable - tradeMarketable securities
Merchandise and finished goods
Work in process
Other current assets
Less: Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Intangible fixed assets
Goodwill
Other intangible fixed assets
Total intangible fixed assets

Total fixed assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term loans
Current portion of long-term loans payable
Income taxes payable
Allowance for employees’ bonuses
Provision for loss on order received
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term debt
Allowance for directors’ and corporate auditors’
retirement benefits
Net defined benefit liability
Asset retirement obligations
Other non-current liabilities
Total non-current liabilities
Total liabilities5(¥ million)

As of September 30, 2020
(Previous Fiscal Year-End)As of June 30, 2021
(End of the First Nine Months)

Net assets
Shareholders’ equity
Capital stock
Additional paid-in capital
Retained earnings
Treasury common stock, at cost

3,888
13,38229,007(2,802)

3,888
12,82831,159(2,690)Total shareholders’ equity

43,47545,185

164

(29)

559
(93)

885
(59)

630

796

Non-controlling interests

2,833

3,274

Total net assets

46,93949,25570,45880,424

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

Total liabilities and net assets

6

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(The nine months ended June 30, 2021)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Dividend income
Foreign exchange gains
Gain on insurance cancellation
Other non-operating income
Total non-operating income
Non-operating expenses:
Interest expenses
Foreign exchange losses
Commission fees
Loss due to COVID-19
Other non-operating expenses
Total non-operating expenses
Recurring profit
Extraordinary gains:
Surrender value of insurance
Total extraordinary gains
Extraordinary losses:
Business reorganization losses
Total extraordinary loss
Profit before income taxes
Income taxes
Income tax adjustment
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

7

First Nine Months of
Fiscal 2020
(October 1, 2019
to June 30, 2020)
48,48133,536
14,944
11,7703,174(¥ millions)First Nine Months of
Fiscal 2021
(October 1, 2020
to June 30, 2021)
53,53135,334
18,196
12,916
5,280

83
59
―
56
182
381

71
55
226
135
212
701

11
19
―
195
50
276
3,279

17
―
277
―
14
309
5,672

668
668

―
―

274
274
3,673
1,053
715
1,769
1,904
(172)
2,077

―
―
5,672
1,653
759
2,412
3,259
112
3,146

Quarterly Consolidated Comprehensive Income(The six months ended June 30, 2021)

ProfitOther comprehensive income:
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

8

First Nine Months of
Fiscal 2020
(October 1, 2019
to June 30, 2020)
1,904(¥ millions)First Nine Months of
Fiscal 2021
(October 1, 2020
to June 30, 2021)
3,259

(615)
(21)
103

(193)
613
33

1

0

(532)
1,372

453
3,713

1,549

3,312

(177)

401

(3) Notes Concerning Quarterly Consolidated Financial Statements(Notes Concerning the Going Concern Assumption)
None(Note Concerning Significant Changes in the Amount of Shareholders’ Equity)
None(Segment Information)
I. The First Nine Months of Fiscal 2020 (October 1, 2019 to June 30, 2020)
1. Information Concerning Net Sales and Operating Income for Each Segment

CRO

SMO

GlobalResearchBusiness

CSO

EKISHIN(China)Business

OthersTotal(¥ millions)
Amountrecorded on
Adjustmquarterlyentconsolidated(Note 1 )financialstatements

Net sales
Sales to outside
20,697
9,938
8,569
2,528
6,032
714
48,481―
48,481
customers
Inter-segment
1,059
22
62
137
13
1,350
2,646
(2,646)―sales and transfers
Total
21,756
9,961
8,632
2,665
6,046
2,065
51,127(2,646)48,481
Segment
2,767
1,234
720
124
(251)
47
4,643
(1,468)3,174
operating income
Notes: 1. Adjustment of ¥(1,468) million for segment operating income includes inter-segment transactions of ¥9 million
and corporate expenses not allocated to each reportable segment of ¥(1,477) million. The main corporate
expenses comprise expenses related to the Company (the holding company).
2. EPS Associates Co., Ltd. and EPS International Holdings Co., Ltd. merged on October 1, 2019. EPS Associates
Co., Ltd. was the surviving company in the merger by absorption upon which its name was changed to EPSInternational Holdings Co., Ltd. Accompanying this, it was moved from the CRO Business to the Global
Research Business segment. Segment information for the six months ended March 31, 2019 is disclosed basedon the reporting segments for the six months ended March 31, 2020.
Ⅱ. The First Nine Months of Fiscal 2021 (October 1, 2020 to June 30, 2021)
1. Information Concerning Net Sales and Operating Income for Each Segment

Net sales
Sales to outside
customers
Inter-segment
sales andtransfers
Total
Segment operating
income(¥ millions)GlobalResearch
Business

EKISHIN(China)Business

Others

Total

Adjustment(Note )

Amount recorded onquarterly consolidated
financial statements

CRO

SMO

CSO

24,07010,266

9,628

2,014

6,765

786

53,531―53,531

351

13

19

248

19

2,361

3,013

(3,013)―24,421

10,280

9,648

2,262

6,784

13,14756,544(3,013)53,531

5,005

1,562

1,199

(63)

(145)

(269)

7,288

(2,007)

5,280

Notes: 1.Adjustment of ¥(2,007) million for segment operating income includes inter-segment transactions of ¥68
million and corporate expenses not allocated to each reportable segment of ¥(1,939) million. The main
corporate expenses comprise expenses related to the Company (the holding company).
2. Information about impairment loss for noncurrent assets or goodwill, etc., by reportable segment
In the nine months ended June 30, 2021, the Company acquired the shares of Speed Apparel Holding Limited(now EPS Creative Health Technology Group Ltd), which was then newly included in the scope of consolidation.
As a result, the amount of goodwill in the Others segment increased by 3,845 million yen. In addition, EPS
Corporation, a consolidated subsidiary of the Company, acquired the shares of CAC Croit Corporation (now EP
Croit Co., Ltd), which was then newly included in the scope of consolidation. As a result, the amount of goodwill
in the CRO Business segment increased by 546 million yen. As allocation of the acquisition costs has not been
completed, the amounts of goodwill are provisional estimates.

9

Important Subsequent Events
The Company resolved at a meeting of the Board of Directors held on May 27, 2021 to express its opinion in support
of a Tender Offer (the "Tender Offer") for the common shares of the Company (the "Company Shares") to be conductedby Shinyou K.K. (the "Tender Offeror") as part of a so-called Management Buyout (MBO) and to recommend that theCompany’s shareholders apply for the Tender Offer.
The Tender Offer was concluded on July 8, 2021 and the Company received a report to the effect that the Tender
Offer had been concluded from the Tender Offeror. The outcome of the Tender Offer was that the total number of thetendered shares (29,103,336 shares) exceeded the minimum planned purchase quantity (20,022,368 shares). Therefore,
the Tender Offeror purchased all tendered shares on July 15, 2021 (the "Commencement Date of Settlement").
Although 29,103,336 shares of Company Shares were tendered, the Tender Offeror was unable to purchase all of
the Company Shares (excluding, however, 9,414,000 shares of Company Shares owned by Y&G Limited, which is theparent company of the Tender Offeror, 26,632 shares of the Company Shares owned by Mr. Hao Yan, Mr. Junbo Song,Mr. Shinro Tashiro, Mr. Tatsuma Nagaoka and Mr. Shinji Hirosaki, who are officers and employees of the Company,
93,090 shares of the Company Shares owned by EPS EKISHIN Co., Ltd. ,which is a consolidated subsidiary of theCompany, and the Company Shares owned by the Company) through the Tender Offer and, therefore, implemented theprocedures described in "(4) Post-Tender Offer Reorganization Policy (Matters Regarding the So-called “Two-Step
Acquisition”)" of "3 Details and Grounds and Reasons for, the Opinion Regarding the Tender Offer" in "NoticeRegarding MBO and Recommendation Application" published on May 27, 2021 and to make the Tender Offeror and
Y&G Limited the sole shareholders of the Company.
Accordingly, the Company resolved at meeting of the Board of Directors held on July 27, 2021 to hold anextraordinary shareholders meeting on August 27, 2021 and to submit proposals regarding a share consolidation,
abolition of provisions on share units and partial amendment to the Articles of Incorporation. The Company also
resolved to cancel treasury shares on condition subject to approval of the proposal on share consolidation as originallyproposed.
As a result, the Company Shares will be delisted via the prescribed procedure in accordance with the delisting criteriaof Tokyo Stock Exchange, Inc. (the “Tokyo Stock Exchange”). After being delisted, the Company Shares will no longer
be tradable on the First Section of the Tokyo Stock Exchange.

10