Notice Regarding Unrealized Losses on Securities as of the End of the Third Quarter of the Fiscal Year Ending March 2026

Status of Unrealized Losses on Securities

Regarding the held-to-maturity bonds owned by Chiba Kogyo Bank, Ltd. and its consolidated subsidiaries, the total unrealized losses as of the end of the third quarter of the fiscal year ending March 2026 amounted to 12,556 million yen. This unrealized loss is equivalent to 117.5% of the consolidated ordinary income of 10,682 million yen for the fiscal year ended March 2025, and 168.3% of the net income attributable to owners of parent of 7,459 million yen. The book value is 115,266 million yen, while the market value is 102,710 million yen. On the other hand, unrealized gains on held-to-maturity bonds stand at 7 million yen, resulting in net unrealized losses of △12,549 million yen. Valuation gains and losses on securities held for other purposes amount to 32,552 million yen, contributing to a total positive valuation gain/loss on securities of 20,003 million yen.

Impact on Earnings and Dividend Forecasts

It has been announced that the unrealized losses on securities in this matter will not affect the earnings guidance or dividend forecast for the fiscal year ending March 2026. The forecasts are based on information available at the time of announcement, and there is a note that actual results may differ due to future changes in circumstances. Additionally, it is mentioned that the third quarter end is December 31.