On May 20, 2024, we published a medium-term management plan (from fiscal year ending March 2025 through fiscal year ending March 2027) and set our cost of shareholder capital. On January 30, 2026, taking into account recent developments in long-term interest rates and other factors, we conducted updated current analysis and evaluation, and reset our cost of shareholder capital as follows, with some additions to our improvement policies: 1. Reset of Cost of Shareholder Capital [As of May 20, 2024] Cost of shareholder capital recognized by our company: approximately 7.0% [As of January 30, 2026] Cost of shareholder capital recognized by our company: approximately 9.0% ※Cost of shareholder capital estimated using CAPM 2. Introduction of Balance Sheet Management Policy • We pursue optimal balance sheet composition by maximizing returns and minimizing invested capital to improve ROE • Dividend amounts are determined based on balance sheet management rather than conventional dividend payout ratio-based dividends For details, please refer to our company website. HOME > IR Information > Management Conscious of Capital Cost and Stock Price Notice regarding formulation of medium-term management plan and response toward realizing management conscious of capital cost and stock price (May 20, 2024): https://www.pegasus.co.jp/ja/ir/pdf/coc_20240520.pdf Response toward realizing management conscious of capital cost and stock price (Update) (January 30, 2026): https://www.pegasus.co.jp/ja/ir/pdf/coc_20260130.pdf