Restar : Notice Concerning Procurement of Funds by Subordinated Loan

May 28, 2024

Restar Corporation (Tokyo Stock Exchange Prime Market: 3156)

Notice Concerning Procurement of Funds by Subordinated Loan

Restar Corporation (hereinafter, the "Company") hereby announces that today it has decided to procure funds totaling 10.0 billion yen through a new subordinated loan (hereinafter, the "Subordinated Loan"), as follows.

1. Purpose and significance of the Subordinated Loan

Based on the management philosophy of "We help society evolve by leveraging information and technology to create and deliver new value and services," the Company values its relationships of trust with all stakeholders, including customers, shareholders, employees, business partners, and local communities, and aims to be "The Electronics Value Platformer."

As described in "Notice Concerning Formulation of Medium-Term Management Plan and 'Actions toward achieving management conscious of cost of capital and stock prices '" which was separately disclosed today, the Company has formulated basic policies for the Medium-term Management Plan through the fiscal year ending March 31, 2027. The basic policies are "Growth of existing businesses", "Expansion of business areas", and "Pursuit of business synergies", and the Company will endeavor to achieve future growth with the vision of becoming "The Electronics Value Platformer" with a scale of 1 trillion yen.

The Company has decided to procure funds through the Subordinated Loan in order to maintain and strengthen its financial position and improve capital efficiency as it implements the growth strategies in the Medium-term Management Plan.

2. Characteristics of the Subordinated Loan

The Subordinated Loan is between equity and debt in nature, and although it is debt, its nature and characteristics are similar to equity. Accordingly, the Company expects for 50% of the amount borrowed to be recognized as equity by the rating agency (Japan Credit Rating Agency, Ltd.), and this will enable the Company to enhance financial soundness by improving the effective ratios of its financial structure, without diluting its shares.

3. Regional development initiatives

The Company believes that addressing the social issue of "regional development" is one of the solutions for the future development of Japan. As announced in the "Announcement of Execution of Capital and Business Alliance Agreement with SBI Holdings, Inc." dated May 10, 2024, the Company will promote collaboration and other activities related to the smart solution business for local governments, which it is working on, in the field of regional development, which the SBI Group is focusing on.

The Company believes that regional financial institutions will be indispensable partners in the promotion of regional development in the future. The Company will promote efforts to contribute to the revitalization of the local economy by having regional financial institutions underwrite a portion of the Subordinated Loan as partners in regional development.

4. Future schedule

The Company has appointed SBI Shinsei Bank, Limited. as the arranger of the Subordinated Loan, and it expects to borrow the funds by the end of August this year. In addition, the Company intends to continue considering the use of hybrid financing.

[Company Profile]

• Restar Corporation Location: Restar Building, 2-10-9 Konan, Minato-ku, Tokyo

Representative Director Chairman and President: Kunihiro Konno Share capital: 4,383 million yen Aiming to become "the Electronics Value Platformer" that solves problems around the world, based on the management philosophy of "we help society evolve by leveraging information and technology to create and deliver new value and services." Promoting diverse types of business development, technological domain expansion, and sustainable scale expansion through group synergies, active co-creation with external partners, capital and business alliances, etc.

Business overview: The Company engages in sales and technical support of semiconductors and electronic components, as well as the proposal of solutions for video, audio, communications, and measurement, and operation and management for the introduction and diffusion of renewable energy through solar power generation.

URL: https://www.en.restargp.com/

[Contact Information]

PR・IR Department, Finance & Accounting Headquarters, Restar Corporation Tel.: [phone]E-mail:[e-mail]