A consolidated subsidiary of H.I.S. Co., Ltd., received a Notification of Cancellation of Employment Adjustment Subsidy Payment Decision and Request for Return from the Tokyo Labour Bureau today as outlined below. The notification concerns the wrongful receipt of Employment Adjustment Subsidy by the consolidated subsidy.

1. Course of events
　NUMBER ONE TRAVEL SHIBUYA Co., Ltd., (headquarters, Ota-ku, Tokyo; hereinafter referred to as "Number One Travel") a consolidated subsidiary of H.I.S. Co., Ltd., has cooperated with an investigation by the Tokyo Labour Bureau on suspicion that the company wrongfully received Employment Adjustment Subsidy for the period from March 2020 to March 2023. As a result of the investigation, it was determined that the company wrongfully received the Employment Adjustment Subsidy by preparing false application documents claiming that employees did not work on days they actually worked. The company received a Notification of Cancellation of Employment Adjustment Subsidy Payment Decision and Request for Return today. In response to the notification, the company's Board of Directors resolved to promptly return the subsidy.

2. Total amount of Employment Adjustment Subsidy received and amount to be returned by NUMBER ONE TRAVEL SHIBUYA Co.,Ltd.
　Total amount received: 109,709,914 yen (period received: March 2020-March 2023)
　Amount to be returned: 131,651,896 yen (total amount of subsidy received and fine)
* An additional late fee of 3% per annum is incurred from the date of receipt of the Employment Adjustment Subsidy to the date of return.

3. Management's responsibility and disciplinary action of parties involved
　At a meeting held on December 13, 2024, the Compensation Committee, an auxiliary body to H.I.S.'s Board of Directors, decided to reduce the compensation of some directors of NUMBER ONE TRAVEL SHIBUYA Co., Ltd. to clearly indicate management's responsibility for this incident. In response to a request from the Company, NUMBER ONE TRAVEL SHIBUYA Co., Ltd., President and Representative Director RANJAN KUMAR DASDEB resigned as of December 26, 2024.

Former President and Representative Director RANJAN 50% reduction in monthly compensation
　 (applied to monthly directors compensation for December 2024)
One director 50% reduction in monthly compensation
　 (5 months from December 2024 through April 2025)

4. Impact on business performance
　This incident will have an insignificant impact on H.I.S.'s consolidated financial results. Furthermore, the investigation of the Group by a special investigation committee is ongoing, and the results of the investigation will be announced after the investigation report is submitted. The announcement of the financial results for the fiscal year ended October 2024 was postponed, and it has not yet been decided when the results will be announced. Once a decision is made, notification will be promptly made.