Interim report
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Consolidated Financial Report For the First Nine Months of the Fiscal Year Ending October 31, 2026 (Japanese GAAP) August 31, 2026 Company name: PARK24 CO., LTD. Stock listing: Prime Market of TSE Code number: 4666 URL : https://www.park24.co.jp/en Representative: Koichi Nishikawa, President and Representative Director, CEO Inquiries: Takao Miki, Director, Executive Corporate Officer, CFO TEL : +81-3-6747-8120 Scheduled day of commencing dividend payment : - Preparation of supplementary financial data : Yes Briefing meeting for financial results to be held : Yes, only in Japanese (For institutional investors and analysts) (Figures are rounded down to the nearest one million yen) 1. Overview of the First Nine Months of Fiscal Year Ending October 31, 2026 (November 1, 2025 – July 31, 2026) (1) Consolidated Operating Results (Figures in percentages denote the year-on-year change) Net sales Operating profit Recurring profit Profit attributable to owners of parent Nine months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % July 31, 2026 304,049 2.7 28,946 16.2 26,726 20.0 36,354 265.1 July 31, 2025 295,915 9.5 24,914 -6.4 22,270 -7.3 9,956 -32.1 (Note) Comprehensive income: Nine months ended July 31, 2026: 44,688 million yen 213.1% Nine months ended July 31, 2025: 14,272 million yen -19.4% Net income per share Net income per share after dilution Nine months ended Yen Yen July 31, 2026 212.97 196.42 July 31, 2025 58.35 53.32 (2) Consolidated Financial position Total assets Net assets Equity ratio Millions of yen Millions of yen % As of July 31, 2026 355,014 117,826 33.2 As of October 31, 2025 354,376 98,193 27.7 (Reference) Equity: Nine months ended July 31, 2026: 117,778 million yen As of October 31, 2025: 98,145 million yen 2. Dividend status Dividend per share Q1 Q2 Q3 Q4 Annual Fiscal year ended Yen Yen Yen Yen Yen October 31, 2025 - 0.00 - 30.00 30.00 October 31, 2026 0.00 - Fiscal year ending October 31,2026 (Forecasts) 65.00 65.00 (Notes) Revisions to dividend projection published most recently: None
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3. Consolidated financial results forecast for the fiscal year ending October 31, 2026 (November 1, 2025–October 31, 2026) (The percentages indicate the rates of increase or decrease compared with the same period of the previous year) Net sales Operating profit Recurring profit Profit attributable to owners of parent Net income per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 411,000 1.2 42,500 13.1 39,500 15.6 44,000 176.4 257.76 (Note) Revisions to the Most Recently Published Consolidated Earnings Forecasts: None * Notes (1) Significant changes in the scope of consolidation during the period: Yes Newly included: - companies (Name) , Excluded: 4 companies (Names) PARK24 INTERNATIONAL LIMITED、 MEIF II CP Holdings 2 Limited、 NATIONAL CAR PARKS LIMITED、TIMES24 SINGAPORE PTE. LTD. (2) Application of accounting treatments specific to the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatements 1) Changes in accounting policies due to revisions to accounting standards and other regulations: None 2) Changes in accounting policies other than 1): None 3) Changes in accounting estimates: None 4) Restatements: None (4) Number of issued shares (common shares) 1) Number of issued shares at end of period (including treasury shares) FY2026 Q3 171,048,369 shares FY2025 171,048,369 shares 2) Number of treasury shares at end of period FY2026 Q3 317,252 shares FY2025 382,497 shares 3) Average number of shares during the period (cumulative) FY2026 Q3 170,703,178 shares FY2025 Q3 170,636,296 shares * Review of the attached quarterly consolidated financial statements by a certified public accountant or audit firm: None * Explanations regarding the appropriate use of financial results forecasts and other special notes The forward-looking statements, including financial results forecasts, contained in this document are based on information currently available to the Company and on certain assumptions deemed reasonable. Actual financial results may differ significantly due to various factors. For the assumptions underlying the financial results forecasts and precautions regarding their use, please refer to page 5 of the attached materials, “1. Qualitative Data on Financial Results and Financial Position (4) Information on the future outlook, including consolidated business performance forecasts.”
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Accompanying Materials – Contents 1. Qualitative Data, Financial Statements and Other Information… … … … … … … … … … … … … … … … … … … … ... 2 (1) Qualitative data on the nine-month consolidated financial results… … … … … … … … … … … … … … … … … … … … 2 (2) Overview of the nine-month financial position … … … … … … … … … … … … … … … … … … … … … … … … … … … … 4 (3) Overview of the nine-month cash flow situation… … … … … … … … … … … … … … … … … … … … … … … … … … … .. 5 (4) Information on the future outlook, including consolidated business performance forecasts … … … … … … … … ... 5 2. Consolidated Financial Statements and Notes… … … … … … … … … … … … … … … … … … … … … … … … … … … … 6 (1) Consolidated nine-month balance sheet… … … … … … … … … … … … … … … … … … … … … … … … … … … … … … ... 6 (2) Consolidated nine-month statements of profit and loss, and comprehensive income… … … … … … … … … … … .. 8 (3) Consolidated nine-month statement of cash flows … … … … … … … … … … … … … … … … … … … … … … … … … … . 10 (4) Notes to consolidated nine-month financial statements … … … … … … … … … … … … … … … … … … … … … … … … 11 (Notes on Segment Information, etc.)… .… … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … . 11 (Notes on Significant Changes in Shareholders' Equity) … … … … … … … … … … … … … … … … … … … … … … … … . 12 (Notes on the Going Concern Assumption) … … … … … … … … … … … … … … … … … … … … … … … … … … … … … ... 12
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- 2 - 1. Qualitative Data, Financial Statements and Other Information (1) Qualitative data on the consolidated financial results for the nine months under review In December 2024, the Group announced the "FY2027 Medium-term Management Plan" as a three-year plan from the fiscal year ended October 31, 2025 to the fiscal year ending October 31, 2027. Under this plan, based on the Group philosophy, "We create new forms of comfort and convenience by responding to the needs of today and anticipating the needs of tomorrow," we have established our "2035 Medium- to Long-term Vision": "Evolve into a Mobility Service Platform Operator." To realize this vision, it is essential to achieve the Medium-Term Management Plan and to promote the expansion, evolution, and integration of the four networks— People (members), Cars (mobility), Communities (destinations), and Parking sites. Through these initiatives, we aim to become an indispensable presence in society. The fiscal year ending October 31, 2026, is the second year of the Medium-term Management Plan, which is themed "the expansion, evolution, and integration of the four networks," and we are undertaking initiatives to expand our business scale and advance our business model. In addition to these initiatives, we are also focusing on returning the Mobility Business to a growth trajectory and the selection and concentration of management resources. Service operations in Parking Business Japan and International exceeded expectations, while service operations in the Mobility Business underperformed during the nine months under review. Additionally, while extraordinary losses of 12.6 billion yen were recorded as a result of the restructuring of the UK business and the sale of the Singapore business implemented in the second quarter, profit attributable to owners of parent significantly increased year on year. This was primarily due to the recognition of income taxes deferred (gain) of 31.8 billion yen, mainly from the restructuring of the UK business. As a result, the Group’s operating results for the nine months under review are as shown below. (Millions of yen) Nine months ended July 31, 2025 Nine months ended July 31, 2026 YoY change Amount Change (%) Net sales 295,915 304,049 8,134 2.7％ Operating profit 24,914 28,946 4,031 16.2％ Recurring profit 22,270 26,726 4,456 20.0％ Profit attributable to owners of parent 9,956 36,354 26,398 265.1％ Results by business segment (including intersegment sales) are as follows. Parking Business Japan Parking operations were solid. Regarding network expansion, during the nine months under review, 1,291 sites were developed. In principle, newly developed parking sites have been made cashless-only. As for existing parking sites, we are accelerating the conversion to cashless-only with in-house developed Times TOWER payment machines and automatic number plate recognition (ANPR) cameras. By developing and rolling out next-generation parking services that enable easier entry, exit, and payment, we are working to improve convenience. As a result, operating results for the nine months under review are as shown below. • Results (Millions of yen) Nine months ended July 31, 2025 Nine months ended July 31, 2026 YoY change Amount Change (%) Net sales 147,362 160,705 13,343 9.1％ Operating profit 27,565 28,496 930 3.4％
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- 3 - • Expansion of the networks End of FY2025 End of Q3 FY2026 Change from FY2025 year-end Number Change (%) Number of Times PARKING sites (Sites) 19,679 20,400 721 3.7％ Number of Times PARKING spaces (Spaces) 697,375 749,771 52,396 7.5％ Total number of parking sites * (Sites) 27,151 27,668 517 1.9％ Total number of parking spaces * (Spaces) 881,545 917,152 35,607 4.0％ * The number of sites/spaces in the monthly parking and facility management services is included. Mobility Business To return the Mobility Business to a growth trajectory, we emphasized on profit per vehicle. In expanding our network, we compare member concentration and the number of vehicles deployed on a localized mesh basis to assess demand in each region. Based on this assessment, we promote the development of rental spaces for the deployment of Times CAR vehicles to pursue expansion at an appropriate pace. In addition, we are continuing promotions through television commercials, web advertising and other channels. Furthermore, we are implementing measures to accelerate member acquisition and expand usage based on regional characteristics and analysis of member usage. During the nine months under review, the number of Times CAR dedicated vehicles increased by 5,853 to 69,733 (109.2% vs. the end of the previous fiscal year), the number of Times CAR rental sites increased by 4,426 to 30,499 (117.0% vs. the end of the previous fiscal year), and the number of members increased by 441 thousand to 4,057 thousand (112.2% vs. the end of the previous fiscal year). As a result of these initiatives, at the end of the nine months under review, the number of Times CAR dedicated vehicles was 112.9% of the level at the end of the same period of the previous fiscal year, while the number of members was 118.0%. The number of members per vehicle is improving because the pace of membership growth (growth in demand) exceeded the pace of increase in Times CAR dedicated vehicles (growth in supply). However, usage fees per vehicle remained below expectations. Operating results for the nine months under review are as shown below. • Results (Millions of yen) Nine months ended July 31, 2025 Nine months ended July 31, 2026 YoY change Amount Change (%) Net sales 92,052 103,338 11,285 12.3％ Operating profit 9,074 10,375 1,300 14.3％ • Expansion of the networks End of FY2025 End of Q3 FY2026 Change from FY2025 year-end Number Change (%) Number of Times CAR vehicles (Units) 80,691 86,995 6,304 7.8％ Number of Times CAR dedicated vehicles (Units) 63,880 69,733 5,853 9.2％ Number of Times CAR rental sites (Sites) 26,073 30,499 4,426 17.0％ Number of members (Thousand people) 3,616 4,057 441 12.2％
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- 4 - Parking Business International Parking operations in Australia fell below expectations, while operations in other regions were generally solid. By leveraging expertise developed in Parking Business Japan and promoting knowledge sharing, we are working to accelerate the development of new parking sites and improve profitability of existing sites. Regarding the development of new parking sites, we are promoting the development of “Localized Times PARKING”. These sites are suited to parking demands and conditions in each region. This strategy is based on the "small-scale, dispersed, and dominant- area development," used in Parking Business Japan. Through these efforts, we are optimizing a business portfolio which have been heavily concentrated on large and long-term contract parking sites, with the aim of reducing business risk. In addition, we are working to improve profitability in our existing sites through initiatives tailored to regional characteristics. During the second quarter, we restructured the UK business and sold the Singapore business. As a result of the UK business restructuring, we shifted away from a portfolio centered on existing large-scale parking sites, under long- term lease contracts and reorganized as a smaller scale business centered on Localized Times PARKING, which are small-scale parking sites under short-term lease contracts. As a result, operating results for the nine months under review are as follows. * The consolidation period of overseas subsidiaries for the nine months of the fiscal year ending October 31, 2025 is from October 1, 2024 to June 30, 2025, and that for the fiscal year ending October 31, 2026 is from October 1, 2025 to June 30, 2026. • Results (Millions of yen) Nine months ended July 31, 2025 Nine months ended July 31, 2026 YoY change Amount Change (%) Net sales 61,804 45,210 -16,594 -26.8% Operating profit (loss) * -1,767 400 2,167 － * Includes amortization of goodwill of -1,072 million yen for the nine months ended July 31, 2025 and -760 million yen for the nine months ended July 31, 2026. • Expansion of the networks End of FY2025 End of Q3 FY2026 Change from FY2025 year-end Number Change (%) Number of Localized Times PARKING sites (Sites) 1,589 1,579 -10 -0.6% Number of Localized Times PARKING spaces (Spaces) 72,744 80,214 7,470 10.3％ Total number of parking sites * (Sites) 2,697 2,058 -639 -23.7% Total number of parking spaces * (Spaces) 491,124 308,307 -182,817 -37.2% * The number of sites/spaces in the monthly parking and facility management services is included. (2) Overview of the nine-month financial position The financial position at the end of the third quarter of the fiscal year under review was as follows. End of FY2025 End of Q3 FY2026 Change Total assets (Million yen) 354,376 355,014 638 Interest-bearing liabilities (Million yen) 172,645 172,162 -483 Shareholders' equity (Million yen) 104,285 115,583 11,297 Shareholders' equity ratio (%) 29.4 32.6 3.1
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- 5 - End of FY2025 End of Q3 FY2026 Change Net D/E ratio (Times) 0.88 1.22 0.33 * Equity Ratio = Shareholders' equity / Total assets * Interest-Bearing liabilities = All liabilities recorded on the consolidated balance sheet that incur interest * Net D/E ratio = (Interest-bearing liabilities - Cash and deposits) / Total shareholders' equity (3) Overview of the nine-month cash flow situation The Group's cash flow position at the end of the first nine months under review is as shown below. (Millions of yen) End of Q3 FY2025 End of Q3 FY2026 Change Cash flows from operating activities 36,794 39,561 2,766 Cash flows from investing activities -32,144 -48,693 -16,548 Free cash flow 4,650 -9,131 -13,782 Cash flows from financing activities -9,742 -40,387 -30,644 Cash and cash equivalents at end of period 43,297 31,465 -11,832 (4) Information on the future outlook, including consolidated business performance forecasts There are no changes to the consolidated financial results forecast for the fiscal year ending October 31, 2026 announced on June 15, 2026 in the “Notice Regarding the Posting and Impacts of Extraordinary Losses and Deferred Taxes (Gain), Revisions to the Full Year Forecast for FY2026”.
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- 6 - 2. Consolidated Financial Statements and Notes (1) Consolidated nine-month balance sheet (Millions of yen) As of October 31, 2025 As of July 31, 2026 Assets Current assets Cash and deposits 80,470 31,471 Notes and accounts receivable - trade 30,902 30,862 Other 37,042 45,051 Allowance for doubtful accounts -413 -323 Total current assets 148,001 107,062 Non-current assets Property, plant and equipment Buildings and structures, net 40,135 39,825 Machinery, equipment and vehicles, net 46,407 54,404 Land 24,896 24,249 Leased assets, net 10,161 8,041 Right of use assets, net 17,655 15,869 Other, net 16,629 30,040 Total property, plant and equipment 155,886 172,431 Intangible assets Goodwill 16,350 6,694 Contract-based intangible assets 1,852 － Other 13,024 15,176 Total intangible assets 31,227 21,871 Investments and other assets Deferred tax assets 4,979 36,924 Other 14,281 16,724 Total investments and other assets 19,261 53,649 Total non-current assets 206,374 247,952 Total assets 354,376 355,014 Liabilities Current liabilities Short-term borrowings 2,358 36,562 Current portion of long-term borrowings 8,099 17,650 Lease liabilities 10,213 9,459 Income taxes payable 8,650 799 Provision for bonuses 3,023 1,572 Other 57,018 50,082 Total current liabilities 89,363 116,127 Non-current liabilities Bonds with share acquisition rights 35,000 35,000 Long-term borrowings 94,724 54,491 Lease liabilities 22,248 18,998 Deferred tax liabilities 633 － Asset retirement obligations 10,230 9,669 Other 3,982 2,901 Total non-current liabilities 166,818 121,061 Total liabilities 256,182 237,188
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- 7 - (Millions of yen) As of October 31, 2025 As of July 31, 2026 Net assets Shareholders' equity Share capital 32,739 32,739 Capital surplus 28,326 8,235 Retained earnings 44,121 75,356 Treasury shares -901 -747 Total shareholders' equity 104,285 115,583 Accumulated other comprehensive income Valuation difference on available-for-sale securities 169 203 Deferred gains or losses on hedges 56 99 Revaluation reserve for land -1,035 -1,033 Foreign currency translation adjustment -6,131 2,302 Remeasurements of defined benefit plans 800 624 Total accumulated other comprehensive income -6,140 2,194 Share acquisition rights 48 47 Total net assets 98,193 117,826 Total liabilities and net assets 354,376 355,014
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- 8 - (2) Consolidated nine-month statements of profit and loss, and comprehensive income Consolidated statements of profit and loss of the first nine months of fiscal 2026 (Millions of yen) Nine months ended July 31, 2025 Nine months ended July 31, 2026 Net sales 295,915 304,049 Cost of sales 221,708 223,523 Gross profit 74,207 80,526 Selling, general and administrative expenses 49,292 51,580 Operating profit 24,914 28,946 Non-operating income Void ticket 155 169 Foreign exchange gains － 56 Other 266 346 Total non-operating income 421 572 Non-operating expenses Interest expenses 2,598 2,218 Foreign exchange losses 22 － Other 444 573 Total non-operating expenses 3,065 2,792 Ordinary profit 22,270 26,726 Extraordinary income Gain on sale of non-current assets 0 880 Other － 57 Total extraordinary income 0 938 Extraordinary losses Loss on reorganization of subsidiaries and associates － 9,145 Loss on sale of shares of subsidiaries and associates － 3,394 Loss on termination of retirement benefit plan 3,323 － Other 142 114 Total extraordinary losses 3,465 12,654 Profit before income taxes 18,804 15,010 Income taxes - current 8,117 10,530 Income taxes - deferred 730 -31,874 Total income taxes 8,848 -21,343 Profit 9,956 36,354 Profit attributable to owners of parent 9,956 36,354
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- 9 - Consolidated statement of comprehensive income of the first nine months of fiscal 2026 (Millions of yen) Nine months ended July 31, 2025 Nine months ended July 31, 2026 Profit 9,956 36,354 Other comprehensive income Valuation difference on available-for-sale securities 19 33 Deferred gains or losses on hedges 32 42 Foreign currency translation adjustment 1,045 8,433 Remeasurements of defined benefit plans, net of tax 3,218 -176 Total other comprehensive income 4,315 8,333 Comprehensive income 14,272 44,688 Comprehensive income attributable to Comprehensive income attributable to owners of parent 14,272 44,688
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- 10 - (3) Consolidated nine-month statement of cash flows (Millions of yen) Nine months ended July 31, 2025 Nine months ended July 31, 2026 Cash flows from operating activities Profit before income taxes 18,804 15,010 Depreciation 26,073 28,558 Amortization of goodwill 1,072 760 Interest expenses 2,598 2,218 Loss (gain) on sale of non-current assets -0 -880 Loss on reorganization of subsidiaries and associates － 9,145 Loss (gain) on sale of shares of subsidiaries and associates － 3,394 Decrease (increase) in trade receivables -1,755 -935 Decrease (increase) in inventories 1,340 3,173 Increase (decrease) in trade payables -23 37 Increase (decrease) in provision for bonuses -1,617 -1,435 Other, net 2,512 -1,579 Subtotal 49,006 57,468 Interest and dividends received 59 76 Interest paid -3,081 -2,805 Income taxes paid -9,190 -15,177 Net cash provided by (used in) operating activities 36,794 39,561 Cash flows from investing activities Purchase of property, plant and equipment -24,458 -42,469 Proceeds from sale of property, plant and equipment 1 1,558 Proceeds from sale of investment securities － 69 Payments for liquidation of subsidiaries and affiliates － -4,552 Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation － 889 Purchase of intangible assets -3,495 -3,595 Payments for asset retirement obligations -337 -228 Other, net -3,854 -364 Net cash provided by (used in) investing activities -32,144 -48,693 Cash flows from financing activities Net increase (decrease) in short-term borrowings 870 33,918 Proceeds from long-term borrowings － 45,000 Repayments of long-term borrowings -337 -75,663 Repayments of lease liabilities -9,424 -9,243 Purchase of treasury shares -0 -0 Dividends paid -851 -5,116 Purchase of shares of subsidiaries not resulting in change in scope of consolidation － -29,282 Net cash provided by (used in) financing activities -9,742 -40,387 Effect of exchange rate change on cash and cash equivalents 349 833 Net increase (decrease) in cash and cash equivalents -4,743 -48,685 Cash and cash equivalents at beginning of period 48,041 80,150 Cash and cash equivalents at end of period 43,297 31,465
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- 11 - (4) Notes to Quarterly Consolidated Financial Statements (Notes on Segment Information, etc.) 1. For the First Nine Months of the Previous Fiscal Year (From November 1, 2024 to July 31, 2025) Information on sales and profits or losses by reported segment (Unit: million yen) Reportable segments Adjustment (Note) 2 Amount on consolidated profit and loss statement (Note) 3 Parking Business Japan Mobility Business Parking Business International (Note) 1 Total Sales Income from contracts with customers 131,972 89,516 60,223 281,712 － 281,712 Other income (Note)4 10,338 2,283 1,581 14,203 － 14,203 Sales to external customers 142,311 91,800 61,804 295,915 － 295,915 Intersegment sales and transfers 5,051 252 0 5,303 -5,303 － Total 147,362 92,052 61,804 301,218 -5,303 295,915 Segment profit (loss) 27,565 9,074 -1,767 34,872 -9,958 24,914 (Notes) 1. The segment profit (loss) of -1,767 million yen in Parking Business International includes an amortization of goodwill of -1,072 million yen. 2. The adjustment amount of segment profit (loss) consists of corporate expenses not allocated to each reportable segment. Corporate expenses mainly include costs related to administrative departments such as the General Affairs Department, which are not attributable to the reportable segments. 3. Segment profit (loss) is reconciled with operating profit in the interim consolidated statements of income. 4. Other income includes rental income, etc., based on the "Accounting Standard for Lease Transactions. 2. For the First Nine Months of Fiscal 2026 (from November 1, 2025 to July 31, 2026) 1. Information on sales and profits or losses by reported segment (Unit: million yen) Reportable segments Adjustment (Note) 2 Amount on consolidated profit and loss statement (Note) 3 Parking Business Japan Mobility Business Parking Business International (Note) 1 Total Sales Income from contracts with customers 144,557 100,786 43,696 289,041 － 289,041 Other income (Note) 4 11,226 2,268 1,513 15,008 － 15,008 Sales to external customers 155,783 103,055 45,210 304,049 － 304,049 Intersegment sales and transfers 4,921 282 － 5,203 -5,203 － Total 160,705 103,338 45,210 309,253 -5,203 304,049 Segment profit (loss) 28,496 10,375 400 39,271 -10,325 28,946 (Notes) 1. The segment profit (loss) of -400 million yen in the Parking Business International includes an amortization of goodwill of -760 million yen. 2. The adjustment amount of segment profit (loss) consists of corporate expenses not allocated to each reportable segment. Corporate expenses mainly include costs related to administrative departments such as the General Affairs Department, which are not attributable to the reportable segments.
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- 12 - 3. Segment profit (loss) is reconciled with operating profit in the interim consolidated statements of income. 4. Other income includes rental income, etc., based on the "Accounting Standard for Lease Transactions." 2. Information on goodwill and impairment losses on non-current assets by reported segment [Notes on Changes in Goodwill Amount] During the second quarter, following the deconsolidation of MEIF II CP Holdings 2 Limited and TIMES24 SINGAPORE PTE. LTD., goodwill pertaining to PARK24 INTERNATIONAL LIMITED and PARK24 SINGAPORE PTE. LTD. in the Parking Business International decreased by 10,378 million yen. [Notes on Significant Changes in Shareholders' Equity] During the first quarter, TIMES 24 Co., Ltd., a consolidated subsidiary of the Group, acquired additional shares of MEIF II CP Holdings 2 Limited (CP2), which is also a consolidated subsidiary of the Group. As a result of the share acquisition, capital surplus decreased by 29,282 million yen. In addition, during the second quarter, following the commencement of liquidation proceedings of CP2 under the UK corporate insolvency law and related events, capital surplus increased by 9,226 million yen as a tax effect adjustment related to differences arising from changes in equity interests. As a result, capital surplus as of the end of Q3 FY2026 was 8,235 million yen. [Notes on the Going Concern Assumptions] There is no applicable matter.