Interim report
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Consolidated Financial Results for the Six Months Ended September 30, 2026 (J-GAAP) October 30, 2026 Listed Company Name: Sanwa Holdings Corporation Listing: Tokyo Stock Exchange Securities Code: 5929 URL https://www.sanwa-hldgs.co.jp/english/ Representative: Yasushi Takayama, Representative Director, President Contact: Kentaro Honda, General Manager, Corporate Planning Department Tel.: +81-3-3346-3019 Scheduled Date to Submit the Semi-annual Securities Report: November 13, 2026 Scheduled Date to Start Dividend Payment: December 1, 2026 Preparation of Results Briefing Materials: Yes Holding of Financial Results Briefing: Yes (for securities analysts and institutional investors) (Amounts of less than one million yen have been truncated) 1. Consolidated Financial Results for the Six Months Ended September 30, 2026 (from April 1, 2026 to September 30, 2026) (1) Consolidated Operating Results (Percentages indicate year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Six Months Ended September 30, 2026 317,387 2.6 29,332 (12.9) 30,527 (11.5) 22,142 (16.3) Six Months Ended September 30, 2025 309,232 (1.5) 33,695 4.3 34,500 0.9 26,451 11.3 Note: Comprehensive income Six Months Ended September 30, 2026: 28,193 million yen 78.1% Six Months Ended September 30, 2025: 15,834 million yen (66.5)% Earnings per share Diluted earnings per share Yen Yen Six Months Ended September 30, 2026 106.04 105.99 Six Months Ended September 30, 2025 124.05 123.99 (2) Consolidated Financial Position Total assets Net assets Equity ratio Millions of yen Millions of yen % As of September 30, 2026 550,087 355,212 64.1 As of March 31, 2026 547,798 350,984 63.6 Reference: Shareholders’ equity As of September 30, 2026: 352,492 million yen As of March 31, 2026: 348,490 million yen 2. Dividends Full-year dividend First quarter-end Second quarter-end Third quarter-end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 – 62.00 – 68.00 130.00 Fiscal year ending March 31, 2027 – 73.00 Fiscal year ending March 31, 2027 (Forecast) – 96.00 169.00 Note: Revision of dividends forecast since last announcement: Yes Note: The annual dividend for the fiscal year ending March 31, 2027 (Forecast) consists of an ordinary dividend of ¥155.00 and a commemorative dividend of ¥14.00 per share. 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.
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3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages represent year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 677,000 2.5 72,000 (9.0) 74,000 (8.2) 45,000 (24.7) 216.81 Note: Revision of consolidated results forecast since last announcement: Yes Notes: (1) Significant changes in the scope of consolidation during the period under review: Yes New: 1 company (Your Automatic Door Company) Excluded: 2 companies (Overhead Door Inc. and Novoferm Siebau GmbH) (2) Application of special accounting treatments in preparing semi-annual consolidated financial statements: Yes Note: For details, please refer to “2. Semi-annual Consolidated Financial Statements and Primary Notes (4) Notes to Semi-annual Consolidated Financial Statements (Notes on Accounting Treatments Specific to the Preparation of Semi-annual Consolidated Financial Statements)” on page 9 of the attached materials. (3) Changes in accounting policies, accounting estimates, and retrospective restatements 1) Changes in accounting policies in accordance with revision of accounting standards: None 2) Changes in accounting policies other than item 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatements: None (4) Number of shares issued (common stock) 1) Number of shares issued at the end of the period (including treasury shares) As of September 30, 2026 219,000,000 shares As of March 31, 2026 221,000,000 shares 2) Number of treasury shares at the end of the period As of September 30, 2026 11,789,890 shares As of March 31, 2026 11,115,446 shares 3) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six Months Ended September 30, 2026 208,814,935 shares Six Months Ended September 30, 2025 213,235,150 shares The review procedure by a certified public accountant or an auditing firm does not apply to this Summary of Consolidated Fina ncial Results. Explanation regarding appropriate use of results forecast and additional notes (Earnings forecasts and other forward-looking statements) This document includes projections based on assumptions, forecasts, and plans for the future that are available on the day of its publication, and actual results may differ from the forecast figures stated in the document due to various risk factors and uncertainties. For further details regarding the earnings forecasts, please see “1. Overview of Operating Results for the Six Months Ended September 30, 2026, (3) Explanation of Consolidated Results Forecasts and Other Forward-looking Statements” on page 3 of the attached materials. (Supplementary presentation materials for financial results) Supplementary materials for financial results will be posted on the Company’s website, along with a summary of the financial results report.
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- 1 - Contents of the Attachment 1. Overview of Operating Results for the Six Months Ended September 30, 2026 ....................................... 2 (1) Operating Results ................................................................................................................................ 2 (2) Financial Position ................................................................................................................................ 3 (3) Explanation of Consolidated Results Forecasts and Other Forward-looking Statements .................... 3 2. Semi-annual Consolidated Financial Statements and Primary Notes ....................................................... 4 (1) Semi-annual Consolidated Balance Sheets ........................................................................................ 4 (2) Semi-annual Consolidated Statements of Income and Comprehensive Income ................................. 6 (3) Semi-annual Consolidated Statements of Cash Flows ........................................................................ 8 (4) Notes to Semi-annual Consolidated Financial Statements .................................................................. 9 (Notes on Accounting Treatments Specific to the Preparation of Semi-annual Consolidated Financial Statements) ......................................................................................................................................... 9 (Segment Information, etc.) ................................................................................................................. 9 (Notes on Significant Changes in the Amount of Shareholders’ Equity) .............................................. 11 (Notes on Going Concern Assumption) ............................................................................................... 11 (Notes on Significant Subsequent Events) .......................................................................................... 11
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- 2 - 1. Overview of Operating Results for the Six Months Ended September 30, 2026 (1) Operating Results During the six months ended September 30, 2026, the external environment surrounding the Sanwa Group continued to face an uncertain outlook due to the impact of the U.S. tariff policies, as well as surging energy and material prices driven by geopolitical risks, including the situation in the Middle East. Amid this environment, the Sanwa Group entered the second year of “Sanwa Global Vision 2030: Mid -Term Management Plan 2027,” and worked to strengthen and expand its foundation to become a global leader of smart entrance solutions that meet the changing needs of society due to climate change and digitalization. Under our basic strategies of strengthening and expanding core businesses in Japan, North America, and Europe, we have been implementing initiatives aimed at strengthening our core products, including shutters and doors, and strategic products, including partitions and dock levelers, as well as expanding our service businesses. We focused our activities on strengthening our customer strategy and supply system, as well as expanding our market share and sales through strengthening our distributor channel stra tegy and demand creation measures. In North America, we acquired Your Automatic Door Company, a company specializing in the sale, installation, and repair of automatic doors, in order to strengthen our business. To grow Asian businesses with solid profits, we worked to strengthen and restructure our efforts in sales, manufacturing, and management of China and Vietnam businesses. To expand business through disaster preparedness products, climate change response products, and smart products and services, we expanded the design scope of the “Water Guard” Waterproof Shutter, and rolled out nationwide the IoT management service “RemoSmaPro,” which enables remote monitoring and operation of entrance equipment such as shutters. To increase productivity and expand p roduction capacity through digitalization and manufacturing innovation, in Japan, we proceeded with the development of a new production management system, and in North America, we promoted the digitalization of business processes and increased productivity by expanding production capacity and optimizing the manufacturing network. To enhance sustainability management and human capital management, we installed solar panels at the Test Center and made efforts to reduce CO2 emissions. In addition, we considered expanding the scope of Scope 3 emissions calculations in preparation for compliance with the SSBJ Standards, while implementing measures aimed at achieving the key performance indicators (KPIs) tied to environmental, social, and governance material issues (ESG materiality). We also worked to strengthen efforts in “People” with a particular emphasis on the promotion of human capital management, and promoted the maximization of human capital through a cycle of individual and organizational growth. Looking at the operating results by segment, in Japan, we saw favorable progress in the penetration of passing increased costs on to selling prices, maintenance services, and Quick Saver, a climate change response product, among others. In North America, w e promoted passing tariff impacts on to selling prices, but were affected by the sluggish housing market. In Europe, we continued to face difficult circumstances due to the sluggish market conditions on top of rising costs. In Asia, while we saw strong per formance in Taiwan, the China business faced challenging market conditions, and we focused our efforts on the corporate restructuring. As a result, net sales for the six months ended September 30, 2026 amounted to ¥317,387 million, a 2.6% year - on-year increase. On the profit side, operating profit amounted to ¥29,332 million, a 12.9% year -on-year decrease, ordinary profit amounted to ¥30, 527 million, an 11.5% year -on-year decrease, and profit attributable to owners of parent amounted to ¥22,142 million, a 16.3% year-on-year decrease. The following describes performance by segment. Segment results show the figures before elimination of inter-segment transactions. < Japan > Net sales amounted to ¥135,444 million, a 2.1% year -on-year increase, with segment income of ¥15,554 million, an 8.1% increase. < North America > Net sales amounted to ¥115,528 million, a 0.1% year -on-year decrease (a 7.1% decrease on a local currency basis), with segment income of ¥14,680 million, a 20.5% decrease. < Europe > Net sales amounted to ¥61,569 million, an 11.4% year -on-year increase (a 2.3% decrease on a local currency basis), with segment loss of ¥699 million, a ¥1,609 million decrease.
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- 3 - < Asia > Net sales amounted to ¥5,083 million, a 13.1% year -on-year decrease, with segment loss of ¥144 million, a ¥24 million decrease. (2) Financial Position (Assets, Liabilities, and Net Assets) As of September 30, 2026, total assets increased by ¥2,288 million from the end of the previous fiscal year to ¥550,087 million, mainly due to an increase in inventories. Liabilities decreased by ¥1,939 million from the end of the previous fiscal year to ¥194,874 million, mai nly due to decreases in accrued consumption taxes and provision for bonuses. Net assets increased by ¥4,227 million from the end of the previous fiscal year to ¥355,212 million, mainly due to an increase in foreign currency translation adjustment. As a result, the shareholders’ equity ratio increased by 0.5 points from the end of the previous fiscal year to 64.1%. (Cash Flows) As of September 30, 2026, cash and cash equivalents increased by ¥3,670 million from the end of the previous fiscal year to ¥95,254 million. Cash flows by category during the six months ended September 30, 2026 are as follows. Net cash provided by operating activities amounted to ¥29,634 million (net cash of ¥28,618 million was provided in the same period of the previous fiscal year), mainly due to the recording of profit before income taxes. Net cash used in investing activities came to ¥490 million (net cash of ¥12,515 million was used in the same period of the previous fiscal year), mainly attributable to purchase of non-current assets. Net cash used in financing activities totaled ¥26,828 million (net cash of ¥27,719 million was used in the same period of the previous fiscal year), mainly due to payment of cash dividends and purchase of treasury shares. (3) Explanation of Consolidated Results Forecasts and Other Forward-looking Statements The consolidated results forecasts for the fiscal year ending March 31, 2027 have been revised from those announced on May 14, 2026. For details, please refer to the “Notice of Revised Forecasts of Consolidated Financial Results” released today (October 30, 2026).
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- 4 - 2. Semi-annual Consolidated Financial Statements and Primary Notes (1) Semi-annual Consolidated Balance Sheets (Millions of yen) As of March 31, 2026 As of September 30, 2026 Assets Current assets Cash and deposits 115,589 120,263 Notes and accounts receivable - trade, and contract assets 119,682 112,872 Electronically recorded monetary claims - operating 15,194 13,682 Securities 9,496 4,787 Merchandise and finished goods 17,892 18,359 Work in process 15,652 21,486 Raw materials 52,358 55,412 Other 10,946 11,382 Allowance for doubtful accounts (3,884) (3,864) Total current assets 352,927 354,383 Non-current assets Property, plant and equipment Buildings, net 27,961 27,503 Land 20,210 20,259 Other, net 53,635 56,082 Total property, plant and equipment 101,807 103,844 Intangible assets Goodwill 3,253 3,250 Other 18,494 18,725 Total intangible assets 21,747 21,975 Investments and other assets Investment securities 51,097 48,310 Retirement benefit asset 13,730 13,990 Other 7,663 8,754 Allowance for doubtful accounts (1,175) (1,171) Total investments and other assets 71,315 69,883 Total non-current assets 194,870 195,703 Total assets 547,798 550,087
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- 5 - (Millions of yen) As of March 31, 2026 As of September 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 33,130 33,254 Electronically recorded obligations - operating 11,425 10,586 Current portion of bonds payable 10,000 10,000 Short-term borrowings 8,338 12,191 Current portion of long-term borrowings 14,025 6,037 Income taxes payable 8,793 8,029 Provision for bonuses 9,874 8,992 Other 55,192 56,599 Total current liabilities 150,779 145,692 Non-current liabilities Bonds payable 10,000 10,000 Long-term borrowings 2,217 5,709 Provision for retirement benefits for directors (and other officers) 401 433 Retirement benefit liability 10,449 10,508 Other 22,965 22,531 Total non-current liabilities 46,034 49,182 Total liabilities 196,813 194,874 Net assets Shareholders’ equity Share capital 38,413 38,413 Capital surplus 39,430 39,430 Retained earnings 223,235 225,070 Treasury shares (33,557) (37,238) Total shareholders’ equity 267,522 265,676 Accumulated other comprehensive income Valuation difference on available-for-sale securities 17,648 16,346 Deferred gains or losses on hedges (62) (134) Foreign currency translation adjustment 59,981 67,387 Remeasurements of defined benefit plans 3,399 3,216 Total accumulated other comprehensive income 80,967 86,816 Share acquisition rights 68 68 Non-controlling interests 2,426 2,651 Total net assets 350,984 355,212 Total liabilities and net assets 547,798 550,087
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- 6 - (2) Semi-annual Consolidated Statements of Income and Comprehensive Income (Semi-annual Consolidated Statements of Income) (For the Six Months Ended September 30) (Millions of yen) Six Months Ended September 30, 2025 (From April 1, 2025 to September 30, 2025) Six Months Ended September 30, 2026 (From April 1, 2026 to September 30, 2026) Net sales 309,232 317,387 Cost of sales 206,646 213,118 Gross profit 102,585 104,269 Selling, general and administrative expenses 68,890 74,936 Operating profit 33,695 29,332 Non-operating income Interest income 1,640 1,864 Dividend income 373 461 Foreign exchange gains – 56 Share of profit of entities accounted for using equity method 111 28 Other 255 261 Total non-operating income 2,381 2,671 Non-operating expenses Interest expenses 662 827 Foreign exchange losses 138 – Other 774 648 Total non-operating expenses 1,575 1,476 Ordinary profit 34,500 30,527 Extraordinary income Gain on sale of non-current assets 1,361 453 Gain on sale of investment securities – 1,341 Gain on liquidation of subsidiaries and associates 313 – Total extraordinary income 1,675 1,794 Extraordinary losses Loss on sale and retirement of non-current assets 25 21 Business restructuring expenses for subsidiaries 694 354 Loss on liquidation of subsidiaries and associates 0 – Total extraordinary losses 720 375 Profit before income taxes 35,455 31,946 Income taxes 8,843 9,601 Profit 26,612 22,345 Profit attributable to non-controlling interests 160 202 Profit attributable to owners of parent 26,451 22,142
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- 7 - (Semi-annual Consolidated Statements of Comprehensive Income) (For the Six Months Ended September 30) (Millions of yen) Six Months Ended September 30, 2025 (From April 1, 2025 to September 30, 2025) Six Months Ended September 30, 2026 (From April 1, 2026 to September 30, 2026) Profit 26,612 22,345 Other comprehensive income Valuation difference on available-for-sale securities 3,791 (1,302) Deferred gains or losses on hedges 34 (72) Foreign currency translation adjustment (14,224) 7,462 Remeasurements of defined benefit plans, net of tax (61) (183) Share of other comprehensive income of entities accounted for using equity method (318) (55) Total other comprehensive income (10,778) 5,848 Comprehensive income 15,834 28,193 Comprehensive income attributable to Comprehensive income attributable to owners of parent 15,637 27,993 Comprehensive income attributable to non- controlling interests 196 200
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- 8 - (3) Semi-annual Consolidated Statements of Cash Flows (Millions of yen) Six Months Ended September 30, 2025 (From April 1, 2025 to September 30, 2025) Six Months Ended September 30, 2026 (From April 1, 2026 to September 30, 2026) Cash flows from operating activities Profit before income taxes 35,455 31,946 Depreciation 7,099 7,675 Amortization of goodwill 397 461 Increase (decrease) in allowance for doubtful accounts (158) (142) Increase (decrease) in provision for bonuses (3,677) (978) Increase in net defined benefit liability and asset (516) (496) Interest and dividend income (2,013) (2,325) Interest expenses 662 827 Share of loss (profit) of entities accounted for using equity method (111) (28) Decrease (increase) in trade receivables 10,106 10,280 Decrease (increase) in inventories (3,827) (7,420) Increase (decrease) in trade payables (3,527) (1,230) Other, net 210 777 Subtotal 40,097 39,347 Interest and dividends received 1,944 2,334 Interest paid (607) (914) Income taxes paid (12,816) (11,133) Net cash provided by (used in) operating activities 28,618 29,634 Cash flows from investing activities Purchase of short-term and long-term investment securities (3,907) (8) Proceeds from sale of short-term and long-term investment securities 2,756 1,923 Purchase of shares of subsidiaries resulting in change in scope of consolidation (531) (436) Purchase of non-current assets (6,343) (7,314) Loan advances (125) (71) Proceeds from collection of loans receivable 136 91 Other, net (4,501) 5,325 Net cash provided by (used in) investing activities (12,515) (490) Cash flows from financing activities Net increase (decrease) in short-term borrowings (585) 3,759 Proceeds from long-term borrowings 1,000 3,500 Repayments of long-term borrowings (1,626) (7,995) Net decrease (increase) in treasury shares (11,915) (9,716) Dividends paid (12,675) (14,272) Other, net (1,915) (2,104) Net cash provided by (used in) financing activities (27,719) (26,828) Effect of exchange rate change on cash and cash equivalents (5,199) 1,355 Net increase (decrease) in cash and cash equivalents (16,816) 3,670 Cash and cash equivalents at beginning of period 103,114 91,583 Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation 43 – Increase in cash and cash equivalents resulting from merger with unconsolidated subsidiaries 36 – Cash and cash equivalents at end of period 86,378 95,254
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- 9 - (4) Notes to Semi-annual Consolidated Financial Statements (Notes on Accounting Treatments Specific to the Preparation of Semi-annual Consolidated Financial Statements) (Calculation of Tax Expenses) The Company reasonably estimates an effective tax rate after applying tax effect accounting to profit before income taxes for the fiscal year in which the six months ended September 30, 2026 are included, and calculates tax expenses by multiplying profit before income taxes for the six months ended September 30, 2026 by the estimated effective tax rate. However, in cases where the calculation of tax expenses using the estimated effective tax rate yields a result that is considered not to be reasonable to a significant extent, the statutory tax rate is used. Note that income taxes - deferred is included in income taxes. (Segment Information, etc.) I. Six months ended September 30, 2025 (From April 1, 2025 to September 30, 2025) 1. Net sales and income or loss by reportable segment (Millions of yen) Reportable segment Adjustments (Note 1) Semi-annual consolidated statements of income (Note 2) Japan North America Europe Asia Total Net sales Sales to customers 132,603 115,618 55,244 5,733 309,200 31 309,232 Intersegment sales or transfers 53 75 49 115 294 (294) – Total 132,657 115,694 55,293 5,849 309,494 (262) 309,232 Segment income (loss) 14,391 18,459 909 (119) 33,641 53 33,695 Notes: 1. Adjustments are as follows: (1) Net sales - Other net sales ¥31 million - Elimination of intersegment transactions ¥(294) million (2) Segment income (loss) - Other income ¥31 million - Corporate expenses ¥(1,271) million - Amortization of goodwill ¥(397) million - Other adjustments ¥87 million - Elimination of intersegment transactions ¥1,603 million Items marked as “Other” involve incidental activities associated with management operations. Corporate expenses primarily consist of general and administrative expenses that are not attributable to any of the reportable segments. 2. Segment income (loss) is reconciled to the operating profit of the semi -annual consolidated statements of income. 3. The major countries and regions in each reportable segment are as follows: North America: USA, Canada, etc. Europe: Germany, France, Italy, Netherlands, UK, etc. Asia: China, Hong Kong, Taiwan, and Vietnam 2. Impairment losses on non-current assets or goodwill, etc. by reportable segment Not applicable.
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- 10 - II. Six months ended September 30, 2026 (From April 1, 2026 to September 30, 2026) 1. Net sales and income or loss by reportable segment (Millions of yen) Reportable segment Adjustments (Note 1) Semi-annual consolidated statements of income (Note 2) Japan North America Europe Asia Total Net sales Sales to customers 135,368 115,487 61,542 4,956 317,355 31 317,387 Intersegment sales or transfers 75 40 26 126 269 (269) – Total 135,444 115,528 61,569 5,083 317,625 (237) 317,387 Segment income (loss) 15,554 14,680 (699) (144) 29,391 (58) 29,332 Notes: 1. Adjustments are as follows: (1) Net sales - Other net sales ¥31 million - Elimination of intersegment transactions ¥(269) million (2) Segment income (loss) - Other income ¥31 million - Corporate expenses ¥(1,299) million - Amortization of goodwill ¥(461) million - Other adjustments ¥135 million - Elimination of intersegment transactions ¥1,535 million Items marked as “Other” involve incidental activities associated with management operations. Corporate expenses primarily consist of general and administrative expenses that are not attributable to any of the reportable segments. 2. Segment income (loss) is reconciled to the operating profit of the semi -annual consolidated statements of income. 3. The major countries and regions in each reportable segment are as follows: North America: USA, Canada, etc. Europe: Germany, France, Italy, Netherlands, UK, etc. Asia: China, Hong Kong, Taiwan, and Vietnam 2. Impairment losses on non-current assets or goodwill, etc. by reportable segment Not applicable.
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- 11 - (Notes on Significant Changes in the Amount of Shareholders’ Equity) Six months ended September 30, 2026 (From April 1, 2026 to September 30, 2026) Not applicable. (Notes on Going Concern Assumption) Not applicable. (Notes on Significant Subsequent Events) (Cancellation of treasury shares) At the meeting of the Board of Directors held on October 30, 2026, the Company resolved to cancel treasury shares in accordance with the provisions of Article 178 of the Companies Act. 1. Reason for cancellation of treasury shares The Company aims to improve capital efficiency through the cancellation of treasury shares, and increase shareholder returns through a reduction in the total number of shares outstanding. 2. Details of cancellation of treasury shares (1) Type of shares to be cancelled The Company’s common stock (2) Total number of shares to be cancelled 3,000,000 shares (3) Scheduled cancellation date December 11, 2026 (4) Total number of shares outstanding after this cancellation 216,000,000 shares (Share buyback) At the meeting of the Board of Directors held on October 30, 2026, the Company passed a resolution on matters pertaining to a share buyback in accordance with Article 459, Paragraph 1 of the Companies Act and the Company’s Articles of Incorporation. 1. Reason for share buyback To further enhance shareholder return, as well as improve capital efficiency and implement a flexible capital policy. 2. Matters pertaining to share buyback (1) Type of shares to be purchased The Company’s common stock (2) Total number of shares to be purchased 3,710,000 shares (maximum) (3) Total value of shares to be purchased ¥10,000 million (maximum) (4) Purchase period November 6, 2026 to March 31, 2027 (5) Purchase method Market purchase on the Tokyo Stock Exchange