Notice Regarding the Recording of Extraordinary Loss

Details of Extraordinary Loss

Tokai Tokyo Financial Holdings, Inc. recorded an extraordinary loss of 2,001 million yen for the fiscal year ending March 2026 as an impairment related to software of consolidated subsidiary CHEER Securities. Additionally, on a non-consolidated basis, a 7,525 million yen extraordinary loss was recorded due to the write-down of CHEER Securities shares to fair value. Furthermore, regarding equity-method affiliate Money Design, a conservative judgment was made factoring in the possibility that recovery from past business losses may take time, leading to a 2,308 million yen extraordinary loss recognized as an investment loss provision.

Impact on Performance and Future Outlook

These extraordinary losses have already been reflected in the consolidated financial summary for the fiscal year ending March 2026, so no additional impact on consolidated earnings is expected from this announcement. The extraordinary losses recorded in the non-consolidated financial statements are based on past losses and represent prudent accounting treatments in line with the future business outlook. Investors should understand the specifics and impact of these extraordinary losses and continue to monitor future performance trends carefully.