#IR

Although the Securities and Exchange Surveillance Commission is conducting a forced investigation into a former employee suspected of violating the Financial Instruments and Exchange Act, the former employee has already resigned and no involvement of other officers or employees has been confirmed. We will continue to cooperate with the investigation and strengthen recurrence prevention measures.

Reported that there is no confirmation of significant impact on Kasumigaseki Capital's facilities or business performance from the maximum seismic intensity of lower 5 earthquake that occurred on April 20, 2026.

In response to a report by Nihon Keizai Shimbun stating that the company has finalized plans to acquire shares of Hitachi Global Life Solutions exceeding 100 billion yen, the company denies this as an announcement from us and states that the matter is under consideration and will be submitted to the Board of Directors.

Hoshino Resort REIT, Inc. entered into interest rate swap agreements totaling 1,430 million yen with Mitsubishi UFJ Bank and Mizuho Bank, effectively fixing the interest rates at 2.595% and 3.011%.

As of now, no significant damage to our Group’s business sites in the Tohoku region due to the magnitude 7.7 earthquake that occurred off the Sanriku coast on April 20, 2026 has been confirmed.

Obic Corporation holds 36.8% of voting rights, and while the company belongs to the Obic Group, their business domains differ. Governance is strengthened through concurrent directors, maintaining a cooperative relationship.

Introduction of shareholder benefit points worth 5,500 yen for shareholders holding 1,000 shares or more as of the end of December 2026. Benefit yield 1.26%, dividend yield 4.13%, total yield 5.39%.

Trust of JPY 287,000,000 will be established and 160,000 shares of treasury stock will be acquired to start a performance-linked stock compensation plan for executives from May 8, 2026.

There have been no confirmed casualties or significant operational impacts at the Hachinohe Head Office and Manufacturing Plant due to the Sanriku offshore earthquake that occurred on April 20, 2026, as of now.

Shopping vouchers worth 1,500 yen valid across 7 facilities will be distributed in late May 2026 to investors holding 3 or more investment units as of February 28, 2026. The usage period is until August 31, 2026.

The Company has reached a settlement in the damages claim litigation with Aioi Nissay Dowa Insurance Co., Ltd., agreeing to pay 400 million yen. The impact on business performance is minor.

Upward Co., Ltd. holds 52.4% of voting rights, and its representative concurrently serves as our Representative Director. The board of directors comprises 10 members, including 4 outside directors, ensuring independence.