クリーマ（4017） – Notice Concerning Correction of Briefing Reports for the Financial Results for Past Fiscal Year

To whom it may concern: May 25, 2022 Company name: CREEMA LTD. Representative: Kotaro Marubayashi, Chief executive officer (Securities Code: 4017, TSE Growth Market) Contact: Saiki Ito, Executive officer & General Manager, Corporate Division (Telephone: +81-3-6447-0105) Notice Concerning Correction of Briefing Reports for the Financial Results for Past Fiscal Year The Company hereby announces that the following briefing reports for the financial results published in past years shall be corrected due to the invalidation of a past resolution of the extraordinary general meeting of shareholders as stated in “Notice of Invalidation of Proposal No. 4 (Reduction of Other Capital Surplus to Cover Deficit) of the Extraordinary General Meeting of Shareholders on December 25, 2018” published in Japanese on May 11, 2022. Please refer to Reason for the corrections below for an explanation of the content of the relevant notice in English, along with the reason for the correction. The figures in the relevant documents (PDF) posted on the Company’s investor relations website have been corrected. 1. Reason for the corrections With regards to “Proposal No. 4: Reduction of Other Capital Surplus to Cover Deficit,” which was approved as proposed at the Company’s Extraordinary General Meeting of Shareholders held on December 25, 2018, it has now been discovered that the content of the resolution was contrary to corporate accounting standards and the provisions of the Companies Act. Under corporate accounting standards (Paragraph 61 of the Accounting Standards for Decrease, etc. of Treasury Shares and Amount of Legal Reserves), retained earnings eligible to be covered by other capital surplus shall be limited to negative balances already finalized as of the end of the fiscal year. In accordance with this standard, the Company had a negative balance of 1,381,756 thousand yen in retained earnings at the end of the fiscal year ended February 28, 2018, and therefore, the maximum amount of retained earnings eligible to be covered is considered to be 1,381,756 thousand yen. On the other hand, the Company resolved to cover 1,421,120 thousand yen in the aforementioned resolution of the extraordinary general meeting of shareholders, the content of which is considered to be in violation of the relevant corporate accounting standards and the provisions of the Companies Act. Accordingly, the said resolution has become null and void, and the transfer of other capital surplus to retained earnings brought forward by this proposal will no longer be effective. Therefore, the Company has decided to correct the relevant portions of the consolidated and single entity financial statements and quarterly consolidated financial statements, which were previously included in the Annual Securities Report, etc., filed by the Company. 2. Details of the revision Please refer to the attachment. The corrections are underlined in red. Details of the corrections 1. Financial results for the 4Q, FY21 -Page 19: [Company-wide] Balance sheet status (Before correction) (After correction) 2. Financial Results Briefing Report for 1Q, FY2022 -Page 9: [Company-wide] Balance sheet status (Before correction) (After correction) 3. Financial Results Briefing Report for 2Q, FY2022 -Page 11: [Company-wide] Balance sheet status (Before correction) (After correction) 4. Financial Results Briefing Report for 3Q, FY2022 -Page 11: [Company-wide] Balance sheet status (Before correction) (After correction) 5. Financial Results Briefing Report for 4Q, FY2022 -Page 11: [Company-wide] Balance sheet status (Before correction) (After correction)