[Translation]
November 18, 2022

Kakuyasu Group Co.,Ltd.
Representative Director and President

Akihiko Tajima（Ticker Code：7686 Tokyo Stock Exchange Standard Market）
Inquiry toDirectorYoshiyuki Maegaichi

Decrease in Paid-in Capital and Capital Reserve
This is to announce that the Company resolved to reduce the Paid-in Capital and Capital
Reserve at the Board of Directors meeting held today with the following.
１． Purpose of the capital transaction
The Company plans to reduce its paid-in capital and capital reserve to increase flexibility andagility in capital policies, etc. including policies on shareholder returns (dividends andpurchasing treasury shares). The reductions in paid-in capital and capital reserve will take placealmost at the same time as the issuance of common stocks related to the introduction of anemployee stock ownership plan (hereinafter the “Capital Increase”) for which a resolution of theBoard of Directors was passed on November 18, 2022, and they will be implemented byresolution of the Board of Directors under Article 447, Paragraph 3 and Article 448, Paragraph
3 of the Companies Act. For further information on the Capital Increase, please refer to“Introduction of Employees Stock Ownership Plan with Capital Increase,” which was issued at
the same time as this announcement.
２． Summary of Decreasing the Paid-in capital（１） Reduced Paid-in capital
Effective from December 22, 2022, the Company will reduce its paid-in capital by
164,500,000 yen.
(Note)The reduction in paid-in capital is subject to the issuance of common stocks. The reduction
will be carried out almost at the same time as the payment associated with the issuance ofcommon stocks and will not exceed the amount of paid-in capital which will increase. The
Board of Directors has thus made this decision about the reduction without a resolution ofthe shareholders’ meeting.

（２） Method of the reduction
The paid-in capital will be reduced as described above according to the Article 447,
Paragraph 3 of the Companies Act. The reduced amount will be transferred to othercapital reserve.
３． Summary of Decreasing the Capital reserve（１） Reduced Capital reserve
Effective from December 22, 2022, the Company will reduce its Capital reserve by
164,500,000 yen.
(Note)The reduction in capital reserve is subject to the issuance of common stocks. The reduction
will be carried out almost at the same time as the payment associated with the issuance ofcommon stocks and will not exceed the amount of capital reserve which will increase. The
Board of Directors has thus made this decision about the reduction without a resolution ofthe shareholders’ meeting.

（２） Method of reduction
The capital reserve will be reduced as described above according to Article 448,
Paragraph 3 of the Companies Act. The reduced amount will be transferred to othercapital reserve.

４． Schedule of the capital transaction（１）Board resolution（２）Public notice for objections from creditors（３）Expiry of creditors’ objections（４）Effective Date of the capital reduction

November 18, 2022
November 21, 2022
December 21, 2022
December 22, 2022

５． Impact to the Company’s financial position
This capital reduction will be accomplished by transferring funds between accounts in net
assets, which will not lead to any monetary transfer. The Company's net assets will thus remainunchanged. The reduction will be carried out almost at the same time as the Capital Increase,and the Paid-in capital and Capital reserve will not decrease from those before the effective dateof the capital reduction.
Disclaimer: This is an English translation of the disclosure. This translation is prepared and provided forthe reader’s convenience.