#Risk

From the end of March 2026, the method for calculating the capital adequacy ratio will change: the credit risk calculation approach will switch from the standardized approach to the foundation internal ratings-based approach, and the operational risk equivalent amount calculation method will change from an ILM specified value of 1 to a multiplier calculated from internal loss data.

There is a risk of uncollectibility or delay in collection of loans amounting to 521 million yen made to consolidated subsidiary Aomori Michinoku Bank Co., Ltd., but the entire amount has been fully provisioned and there is no impact on earnings guidance.

From the end of March 2026, the calculation method of the capital adequacy ratio will be changed from the standardized approach to the foundation internal rating-based approach, with approval from the Financial Services Agency.

From the end of March 2026, the credit risk measurement method for calculating the capital adequacy ratio will be changed from the "Standardized Approach" to the "Basic Internal Ratings-Based Approach," with approval from the Financial Services Agency, and application will commence.

Shareholders including Oasis Japan Strategic Fund Ltd. have requested the convening of an extraordinary general meeting to appoint an independent investigator to examine the risk management system of palm oil and paper & pulp supply chains.

Nikkiso Co., Ltd. disclosed on January 29, 2026, that its claim was not upheld in the Tokyo High Court appellate judgment regarding the lawsuit to cancel the tax adjustment under the Tax Haven Countermeasures Act.

Partial amendments made to the notice regarding changes in sub-subsidiaries disclosed on October 31, 2025. Announced corrections to locations, establishment dates, and representative titles/names, and postponed the investment execution date.

The establishment date of the grandchild company by our subsidiary has been changed from the initially planned November 30, 2025, to December 23, 2025 (local time). The delay was due to time required for establishment procedures, with no impact on financial performance.