• RAKUTEN GROUP, INC.

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　Rakuten Group, Inc. (hereinafter the "Company") previously accounted for its shares in AST Space Mobile, Inc. (hereinafter "AST") using the equity method, considering the substantial influence exerted over AST, including the appointment of directors to the Board of Directors. In recent years, due to a continued decline in the Company's voting rights ratio and changes in the composition of AST's Board of Directors, etc., we have lost significant influence. Therefore, starting from October 11, 2024, the Company will account for these shares as financial assets measured at fair value through other comprehensive income.

As a result of this change in accounting treatment, the difference between the fair value of AST shares as of the date of the change, and the equity method book value on a consolidated basis, will be recorded in "Other Income" and "Share of gains of investments in associates and joint ventures" in the amount of approximately 100 billion yen in the consolidated financial statements for the fourth quarter of the fiscal year ending December 31, 2024.