Notice Regarding Lease of Fixed Assets by a Consolidated Subsidiary

Overview of Business Activities

As part of the "Caresanc Partner Lease" business launched by consolidated subsidiary Caresanc, a system will be established to acquire in bulk fixed assets such as senior homes and to sublease them. Depending on the progress of property construction after the contract, the timing of recognizing rental income, sublease income, and related lease gain/loss is expected to be approximately one and a half years later. The subject properties are land and buildings in Tokorozawa City, Saitama Prefecture, and Hadano City, Kanagawa Prefecture, and the lease and sublease amounts are described as exceeding 30% of the net assets on the most recent consolidated balance sheet.

Financial Impact and Future Outlook

The impact of this matter on consolidated results for the fiscal year ending October 2026 is expected to be minor; whether there will be any impact from the fiscal year ending October 2027 onward will be promptly disclosed if there is a material impact. Specific information on the counterparty is not disclosed due to confidentiality obligations and the nature of the relationship. The contract date is 2026-09-30, and the lease start date and sublease start date are scheduled for 2028.