Notice Regarding Unrealized Losses on Securities at the End of the Second Quarter of the Fiscal Year Ending March 2027

Summary

This notice discloses unrealized losses and related losses on held-to-maturity bonds held by The Towa Bank, Ltd. The total unrealized loss at the end of the second quarter amounted to 8,791 million yen. Comparison with the same period of the previous year is not disclosed, so ratio analysis cannot be performed. Accordingly, consolidated ordinary loss was -29,837 million yen and net loss attributable to owners of parent was -24,499 million yen. The book value is 46,351 million yen and the fair value is 37,560 million yen; total unrealized gains are 85 million yen, and net unrealized gains (losses) are -8,706 million yen. There is no impact on earnings guidance or dividend forecast at this time, but figures may change depending on future market conditions.

Impact on Investors and Outlook

This notification discloses unrealized losses on held securities and is not considered to directly trigger revisions to earnings forecasts. However, fluctuations in fair value may affect future asset recognition and profit and loss, so it is necessary to monitor future market and interest rate trends. At present, there is no change to earnings guidance or dividend forecast, but uncertainty remains.