TKAO News Release
December 2023

Tokyo Kyodo Accounting OfficeFinancial Solutions Division
Kokusai Bldg. 9F
1-1 Marunouchi 3-ChomeChiyodaku, Tokyo 1000005

Tokyo Kyodo Accounting Office, as a service organization, has just completed its update
for examination process under AT-C 320, AT-C 105 and AT-C 205 Type 2 and ISAE3402
Type 2, with an assertion by its management.

Tokyo Kyodo Accounting Office (here in after referred to as “TKAO”) as a service organizationin financial industry, has just obtained updated AT-C320 Type 2 and ISAE3402 Type 2 report.
Attestation Standards AT-C Section 320 (AT-C320), AT-C Section 105 (AT-C105), and AT-C
Section 205 (AT-C205) (here in after referred to as “AT-C320”), and International Standard on
Assurance Engagements 3402 “Assurance Reports on Controls at a Service Organization” (herein after referred to as “ISAE3402”) are reporting standards based on Attestation Standards andInternational Standard on Assurance Engagements, respectively.

At requests from market participants, TKAO, as an administrative service organization, has long
been providing more than 9,200 user entities (Special Purpose Vehicles in structured finance withvarious asset types and schemes, here in after referred to as “Vehicles”) with administrative
services including cash management services of the Vehicles.
Recently, the Financial Instruments and Exchange Act of Japan has set forth statutory
obligations for the financial instruments business operators such as bankers and asset managers.
Such obligations and rules clearly require that the financial instruments business operators should
strictly examine reliability and adequacy of administrative service organizations. Consequently,
financial instruments business operators become more concerned about operational quality of theadministrative service organizations; it is critical how such business operators identify theadequacy of operational reliability when they outsource their administrative operation.
TKAO has just completed a management description on administrative operations of theVehicles relevant to effective internal control over financial reporting on Vehicle administrative
operations pursuant to AT-C320 and obtained the service auditor’s report (“AT-C320 Type 2report”) on it through the period of 1 October 2022 to 30 September 2023 in accordance with AT-1

C320. At the same time, TKAO has just completed a similar procedure pursuant to ISAE3402
and obtained the service auditor’s assurance report (“ISAE3402 Type 2 report”) through the same
period in accordance with ISAE3402.
AT-C320 superseded AT801 “Reporting on Controls at a Service Organization”.

We hope the AT-C320 Type 2 and ISAE3402 Type 2 report will facilitate our customers’ speedy
and effective procedure when they assess our controls likely to be relevant to their internal control
over financial reporting.

The summary of the AT-C320 Type 2 and ISAE3402 Type 2 report is as follows;
Attestation/Assurance standards:(1) Attestation Standards AT-C Section 320 (AT-C320), AT-C Section 105(AT-C105), and AT-C Section 205 (AT-C205) American Institute ofCertified Public Accountants (AICPA)(2) International Standard on Assurance Engagements 3402 (ISAE3402)“Assurance Reports on Controls at a Service Organization”, International
Auditing and Assurance Standards Board (IAASB)
Scope:

Administrative operations of the Vehicles relevant to their effective internal
control over financial reporting

Period:1 October 2022 to 30 September 2023

Service Auditor:

Ernst & Young ShinNihon LLC

This AT-C320 Type 2 and ISAE3402 Type 2 report is intended solely for the information and use
of user entities of TKAO’s Vehicle administrative operations through the period of 1 October 2022
to 30 September 2023, and the independent auditors of such user entities, who have a sufficientunderstanding to consider it, along with other information including information about controls
implemented by user entities themselves, when obtaining an understanding of user entities
information and communication systems relevant to financial reporting.

This report is notintended to be and should not be used by anyone other than these specified parties.
Accordingly, Ernst & Young ShinNihon LLC, the service auditor of the AT-C320 attestation andISAE3402 assurance has no responsibility whatsoever to anyone other than TKAO, user entities
of TKAO’s, and the independent auditors of such user entities regardless any liability is found
attributable to Ernst & Young ShinNihon LLC. This AT-C320 Type 2 and ISAE3402 Type 2
report should be disclosed in the original complete and unaltered form Ernst & Young ShinNihon
LLC provided so that users of this report could understand the original meanings of items such as

2the scope, the procedures performed by the service auditor, and conclusions in this report.
Because of their nature, controls at a service organization may not prevent, or detect and correct,
all errors or omissions in processing or reporting transactions.

The projection to the future of any

evaluation of the fairness of the presentation of the description, or any conclusions about thesuitability of the design or operating effectiveness of the controls to achieve the related control
objectives is subject to the risk that controls at a service organization may become ineffective orfail. This AT-C320 Type 2 and ISAE3402 Type 2 report expresses the service auditor’s opinion
on the above mentioned scope only through the period of 1 October 2022 to 30 September 2023.

TKAO will continuously take examinations for AT-C320 and ISAE3402 Type 2.
TKAO is and will be continuing its effort to enhance operational quality and reliability throughrobust internal control in order to provide customers with appropriate services for stable financial
schemes.

Sincerely yours,Tokyo Kyodo Accounting Office Co. Ltd.
Administration Division, Risk Management Team
Tel: +81 3 5219 8777

shizuka-matsunaga@tkao.com

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