・Response Toward Realization of Management Conscious of Capital Cost and Stock Price The Company has incorporated return on equity (ROE) into its management metrics and is striving for efficient management. Specifically, while considering an ROE level of 30%, we grasp and forecast management metrics for the continuous expansion and development of our business, and disclose specific target figures in our management plans each fiscal period. Following the request made by the Tokyo Stock Exchange on March 31, 2023 regarding "Realization of Management Conscious of Capital Cost and Stock Price," we conduct regular reviews based on current analysis and future projections, and implement appropriate allocation of management resources. ・Background, Current Issues, Response Policy, and Specific Countermeasures Regarding profit returns to shareholders, our group's basic policy is to make comprehensive considerations of business and investment plans, business performance trends, and financial condition, and to implement returns while maintaining balance with retained earnings. Regarding the return on equity (ROE), one of our management metrics, we maintain a high level compared to external benchmarks (30%). Due to increased shareholders' equity from accumulated retained earnings, the indicator showing capital profitability is expected to gradually deteriorate. Considering future business and investment plans, we judge that improvements in financial soundness beyond the current level would lead to future capital efficiency deterioration, and therefore adopt a policy of actively returning surplus funds to shareholders. We will continue to acquire treasury shares while taking into account stock liquidity and stock price conditions, thereby aiming for a total shareholder return ratio target of over 80% (long-term average: approximately five-year rolling average). In addition to dividend increases and share buybacks, we are implementing fundamental measures for sustained growth, continuously monitoring business portfolio reviews, appropriate allocation of management resources, and market evaluation of stock prices through our Board of Directors and management meetings. We disclose various indicators such as business segment merchandise turnover, operating profit, capital investment, and ROE trends, striving to build shared understanding with shareholders and investors regarding qualitative and quantitative bases for achieving our management plan targets. ・Implementation of Initiatives In response to the above-mentioned current issues, we have implemented the following initiatives: ①Acquisition of Treasury Shares Total number of shares acquired: 6,541,500 shares Total acquisition price of shares: 9,999,854,450 yen Acquisition period: May 1, 2025 to July 31, 2025 ②Cancellation of Treasury Shares 9,390,171 shares (representing 1.04% of total issued shares prior to cancellation) Date of cancellation: May 9, 2025 We will continue to examine and implement initiatives to achieve capital profitability exceeding capital cost and ensure sustained growth.