Restar : Notice Concerning Recording of Non-operating Expenses and Extraordinary Losses

Note: This document has been translated from a part of 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.

	May 12, 2023
Company Name:	Restar Holdings Corporation
	(Code: 3156 Tokyo Stock
	Exchange Prime Market)
Name of Representative:	Tomoharu Asaka,
	Representative Director
Contact Information:	Atsuki	Ishida,
	Corporate	Officer
	(Tel.: [phone])

Notice Concerning Recording of Non-operating Expenses and Extraordinary Losses

The Company hereby announces that it has recorded non-operating expenses and extraordinary losses in its non- consolidated financial results for the fiscal year ended March 31, 2023, as follows.

Furthermore, since these items are eliminated in consolidated financial results, there is no impact on consolidated earnings.

1. Recording of Provision of Allowance for Doubtful Accounts for Subsidiaries and Associates

In light of the deterioration in the operating results and financial position of a consolidated subsidiary of the Company, the Company determined that, in relation to claims against this company, it was necessary to record provisions for the allowance for doubtful accounts in proportion to the amount of excess liabilities. Accordingly, the Company recorded provision of allowance for doubtful accounts for subsidiaries and associates.

2. Recording of Provision for Loss on Business of Subsidiaries and Associates

The Company recorded provision for loss on business of subsidiaries and associates in relation to the amount of excess liabilities for the fiscal year ended March 31, 2023.

3. Recording of Loss on Valuation of Shares of Subsidiaries and Associates

Owing to the deterioration in the performance of a consolidated subsidiary of the Company, the Company recorded a loss on valuation of shares of subsidiaries and affiliates in order to properly value the shares of this company held by the Company.

4. Impact of these Events on Profit or Loss and Consolidated Profit or Loss

As a result of the occurrence of these events, the Company has recorded non-operating expenses and extraordinary losses on a non-consolidated basis for the fiscal year ended March 31, 2023, as follows. Furthermore, since these items are eliminated in consolidated financial results, there is no impact on consolidated earnings.

Non-operating expenses

Provision of allowance for doubtful accounts for subsidiaries and associates 981 million yen

Provision for loss on business of subsidiaries and associates	1,059 million yen
Extraordinary losses
Loss on valuation of shares of subsidiaries and associates	1,721 million yen

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