Securities Report(Report in accordance with Article 24(1)of the Financial Instruments and Exchange Law)
Business Year

April 1, 2023

(52nd fiscal)

To March 31 2024

MIRARTH HOLDINGS, Inc.

Tekko Building 16F 1-8-2, Marunouchi, Chiyoda-Ku, Tokyo, Japan(E03997)

Table of Contents
Page
Cover
Part I.

Corporate Information

1

I

Company Overview

11.Trends in Major Management Indicators

1

2.History

3

3.Business Details

4

4.Status of Affiliated Companies

6

5.Status of Employees

7

Business Conditions

9

II

III

IV

V

1.Management Policy, the Business Environment, and Issues to be Addressed.

92.Approach to and Initiatives for Sustainability

12

3.Business and Other Risks

24

4.Management's Discussion and Analysis of Financial Condition, Results of Operations and Cash Flows

39

5.Significant Management Contracts

43

6.R&D Activities

43

Status of Facilities

44

1.Overview of Capital Expenditures

44

2.Status of Major Facilities

44

3.Plans for new construction, retirement, etc. of facilities

45

Submitting Company Status46

1.Status of Equity securities

46(1)Total number of Equity securities

46(2)Status of Subscription rights to shares and Others

47(3)Exercise Status of Bonds with Subscription rights to shares with Exercise Price Adjustment, etc.

71(4)Trends in Number of issued shares and Capital stock etc.

72(5)Breakdown of Shareholders.

72(6)Status of Major Shareholders

73(7)Status of voting rights

74

2.Status of Acquisitions of Treasury stock and Other Matters

74

3.Dividend Policy

75

4.Corporate Governance and Other Matters

76(1)Overview of Corporate Governance76(2)Status of Directors and Audit & Supervisory Board Members

83(3)Audit Status

89(4)Remuneration for Directors

93(5)Status of Equity securities Holdings

95

Status of Accounting

95

1.Consolidated Financial Statements

92

2.Financial Statements

148

VI

Outline of Submitting Company's Equity securities Operations

162

VII

Submitting Company Reference163

1.Information on Submitting Company's Parent Company

163

2.For Other Reference

163

Information on Submitting Company's Guarantor, etc.

164

Part II.

[Audit report Sheet][Internal Control Report Document]

[Cover][Filing]

Securities Report Statement[Applicable provision]

Article 24(1) of the Financial Instruments and Exchange Act[Submitted To]

Director-General of the Kanto Local Finance Bureau[Date of submission]

June 26, 2024

[Fiscal year]

52nd fiscal period (from April 1, 2023 to March 31 2024)[Company name]

MIRARTH HOLDINGS, Inc.

[Company Name in English]

MIRARTH HOLDINGS, Inc.

[Representative]

Kazuichi Shimada, Representative Director, Group CEO, Group COO and President Executive Officer[Address of head office]Tekko Building 16F 1-8-2, Marunouchi, Chiyoda-Ku, Tokyo, Japan[Telephone](03)6551-2133[Contact]

Daisuke Nakamura Managing Director, CFO of Director Group. Executive Officers[Contact address]

Tekko Building 16F 1-8-2, Marunouchi, Chiyoda-Ku, Tokyo, Japan[Telephone](03)6551-2133[Contact]

Daisuke Nakamura Managing Director, CFO of Director Group. Executive Officers[Place for public inspection]

Kita-Kanto Branch of MIRARTH HOLDINGS, Inc.
(1-20-1, Takahanacho, Omiya-ku, Saitama-shi, Saitama)
Tokyo Stock Exchange, Inc.
(2-1 Nihombashi Kabutocho, Chuo-ku, Tokyo)

Part I. [Company Information]
I. [Company Overview]
1[Trends in Major Management Indicators](1)FINANCIAL SUMMARY
Fiscal term

48th fiscal year

49th fiscal year

50th fiscal year

51st fiscal year

52nd

Year-end

2020 March

2021 March2022 March2023 March2024 March

168,493

148,397

162,744

153,472

185,194

11,201

9,933

10,258

5,033

12,984

5,361

4,693

6,215

4,584

8,178

5,202

5,327

6,293

3,852

8,409

51,13954,63259,601

65,142

71,669195,448

204,315

223,473

341,669

337,447(Millions of

Net sales

yen)(Millions of

Ordinary incomeyen)

Net income attributable to owners of parent(Millions ofyen)Comprehensive income(Millions ofyen)(Millions of

Net assets

yen)(Millions of

Total assetsyen)

1 Shares Per share Net assets(Yen)

467.05498.78542.04558.95596.90Net income per share

(Yen)

49.45

43.22

57.10

41.90

74.39

(Yen)

49.11

42.94

56.69

41.58

73.72

Equity ratio

(%)

25.9

26.5

26.5

18.0

19.5

Return on equity

(%)

10.9

9.0

11.0

7.6

12.9

Price-earnings ratio(times)

7.1

8.6

5.2

9.0

6.9

47,70826,33023,189△722

36,777△32,136△25,090△27,871△46,354△26,329△1,6082,654△1,132

61,531△15,464

34,60538,50032,69347,14841,884

973

1,061

1,200

1,293

1,377

(118)

(118)

(111)

(104)

(110)

Fully diluted
Net income per share

Cash flow from operating activities(Millions ofyen)Cash flow from investing activities(Millions ofyen)Cash flow from financing activities(Millions ofyen)Cash and cash equivalents's Term end Balance(Millions ofyen)

Number of employees(Outside, average number of temporary
employees)(People)(NOTE)1. The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, dated 2020 March 31) and other standards from the
beginning of the fiscal year under 50th fiscal year, and major management indicators and others related to 50th fiscal year and thereafter are the indicesafter the application of these accounting standards and other standards.
2.The provisional accounting treatment for business combinations conducted in 51st fiscal year has been finalized in the 52nd fiscal period. As a result of the
finalization of this provisional accounting treatment, there has been no change in the amount of 51st fiscal year's Be related major management indicators,
etc.

-1-

(2) Submitting Company management indicators, etc.
Fiscal term

48th fiscal year

49th fiscal year

50th fiscal year

51st fiscal year

52nd

Year-end

2020 March

2021 March2022 March2023 March2024 March(Millions of

Net sales

123,908

96,94988,94977,36489,226

10,548

8,682

7,738

4,305

8,336

4,667

3,257

5,052

3,659

6,209

4,819

4,819

4,819

4,819

4,819

121,000,000

121,000,000

121,000,000

121,000,000

121,000,000

45,84447,80351,44752,93756,861150,255

144,796

150,689

154,996

148,678420.64438.12469.97480.08513.95

19.00

14.00

18.00

22.00

24.00

(6.00)(4.00)(4.00)(4.00)(6.00)

(Yen)

43.05

30.00

46.42

33.45

56.48

(Yen)

42.75

29.80

46.08

33.19

55.98

Equity ratio

(%)

30.4

32.9

34.0

34.0

38.1

Return on equity

(%)

10.5

7.0

10.2

7.0

11.4

Price-earnings ratio(times)

8.1

12.4

6.4

11.3

9.1

Dividend payout ratio

(%)

44.1

46.7

38.8

65.8

42.5

334

365

343

9

38

(10)

(9)

(8)

(-)

(1)

yen)
(Millions of

Ordinary income

yen)(Millions of

Net income

yen)(Millions ofCapital stockyen)

Number of issued shares(Shares)(Millions of

Net assets

yen)(Millions of

Total assetsyen)

1 Shares Per share Net assets(Yen)

1 Shares Per share dividends(Including 1 Shares Per share interim(Yen)dividends)
Net income per share
Fully diluted
Net income per share

Number of employees(Outside, average number of temporary(People)employees)
Total shareholder return

(%)

107.0

118.0

101.7

130.8

177.9

(Comparison index: TOPIX with dividends)(%)(90.5)(128.6)(131.2)(138.8)(196.2)Highest stock price

(Yen)

525

408

378

404

520

Lowest stock price

(Yen)

306

290

261

280

370

(NOTE)1. 51st fiscal year's 1 Shares Per share dividends includes a commemorative dividend of 2 yen to commemorate its 50th anniversary.
2.Highest stock price and Lowest stock price are in Tokyo Stock Exchange Prime market from April, 2022 4 and Tokyo Stock Exchange marketplace Part I. forprior periods.
3.The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, dated 2020 March 31) and other standards from the
beginning of the fiscal year under 50th fiscal year, and major management indicators and others related to 50th fiscal year and thereafter are the indicesafter the application of these accounting standards and other standards.

-2-

2[History]
September, 1972

Itabashi-ku, Tokyo Established Takara Komuten Co., Ltd. in Yamato-cho for 1.7 million yen per Capital stock.

January, 1973

Real Estate Transaction Business Tokyo Governor (1) obtained a license for No. 23405 and commenced Real estate.

May, 1974

Head office moved to Nakaitabashi, Itabashi-ku.

June, 1975

Purchased the Daiichi Takara Building, a head office building, in Nakaitabashi, Itabashi-ku.

August, 1975

Tokyo Metropolitan Governor's License (General-50) No. 37608 obtained.

June, 1979

Head office moved to Daiichi Takara Building.

September, 1985

Obtained permission under Governor of Tokyo Metropolitan Government (1) No. 05714.

May, 1986

Established Takara Zyuhan Co., Ltd. to expand sales and brokerage operations.

April, 1988

Established Takara Management Co., Ltd., a real estate management company.

May, 1989

Takara Zyuhan Co., Ltd. changed its license from the Tokyo Metropolitan Governor to Construction Minister's license (1) No. 3900.

May, 1994

Established Takara Zyuhan Condominium Division Co., Ltd.

June, 1994

Launched the Leben Heim series of condominiums sold in-house.

February, 1996

Takara Management Co., Ltd. changed its name to Leben Community Co., Ltd.

August, 1999

Real Estate Transaction Business: Minister of Construction License, License Number: Minister of Construction (1) No. 5924.

September, 1999

Absorbed Takara Zyuhan Co., Ltd.

October, 2000

Changed the company name from Takara Komuten Co., Ltd. to Takara Leben Co., Ltd.

August, 2001

Head office moved to Toshima-ku, Tokyo.

November, 2001

Listed on the JASDAQ market

December, 2001

Established TAFUKO CO., LTD. (now Leben Zestock Co., Ltd.), a loan agency business.

April, 2003

Listed on the Second Section of Tokyo Stock Exchange

March, 2004

Listed on the First Section of Tokyo Stock Exchange.

November, 2004

Established the nursing care business "Azu Partners Co., Ltd."

June, 2005

General Construction Business License was changed to Specified Construction Business License (Special-17) No. 37608.

September, 2005

Registered as trust beneficiary right sales business, Director-General of the Kanto Local Finance Bureau (sales credit) No. 241.

May, 2006

Head office moved to Shinjuku Sumitomo Building in Shinjuku, Tokyo.

March, 2009

Transferred from a consolidated subsidiary to an equity-method affiliate following the partial sale of shares in Azu Partners Co., Ltd.

September, 2009

Established Kita-Kanto Branch.

May, 2010

Completed the capital increase through the first rights issue in Japan.

April, 2012

New condominium brands "LEBEN" and "THE LEBEN" announced.

October, 2012

Acquired Takara Housing Co., Ltd. (formerly Takara Property Co., Ltd.), a leasing management business, as a subsidiary.

February, 2013

Launched mega-solar business.

October, 2013

Established Takara Asset Management Co., Ltd. (now MIRARTH Asset Management Co., Ltd.), an investment management business.

November, 2013

Sunwood Corporation became an equity-method affiliate.

April, 2014

Hokuriku Sales Office opened.

June, 2014

Acquired Oasis Co., Ltd. (now Takara Leben Realnet Co., Ltd.), a real estate distribution business, as a subsidiary.

October, 2014

Made Nikko Construction Co., Ltd. (now Leben Home Build Co., Ltd.) a subsidiary.

January, 2015

Made Livenet Home Co., Ltd. (formerly Takara Leben Tohoku Co., Ltd.) a subsidiary. Relocated to Sendai City, Miyagi.
Jyutakujyouhoukan Co., Ltd. (now Takara Leben Co., Ltd.) became a subsidiary.

January, 2016

Made Nikko Property Co., Ltd. (now Leben Trust Co., Ltd.) a subsidiary.

June, 2016

Takara Leben Infrastructure Fund Inc. was listed on the infrastructure fund market for the first time.

January, 2017

Announced new condominium brand NEBEL.

April, 2017

Opened Osaka Branch and Sapporo Sales Office.

May, 2017

Relocated Head Office to Marunouchi Iron & Steel Building in Chiyoda-ku.

January, 2018

Acquired PAG Real Estate Investment Advisor Co., Ltd. (now MIRARTH Real Estate Investment Advisor Co., Ltd.).

March, 2018

Opened a representative office in Hanoi, Vietnam.

July, 2018

Takara Leben Real Estate Investment Corporation listed on Tokyo Stock Exchange Real Estate Investment Trust Market.

June, 2019

Nikko Property Co., Ltd. changed its name to Leben Trust Co., Ltd.

October, 2019

Leben Trust Co., Ltd. merged with Takara Property Co., Ltd.

February, 2021

Established Leben Funding LLC, an asset management business.

April, 2021

Acquired ACA Clean Energy Co., Ltd. (now MIRARTH Energy Solutions Co., Ltd.), a renewable energy company.

June, 2021

Opened a sales office in Nagoya.

April, 2022

Shifted from Tokyo Stock Exchange's First Section to Prime market by reviewing Tokyo Stock Exchange's market Category.

2022 August.

Established Takara Leben(Thailand (Co., Ltd.) in Bangkok, Thailand.

September, 2022

50th anniversary.

October, 2022

Moving to a holding company structure Company name changed to MIRARTH HOLDINGS, Inc..
Takara Leben Co., Ltd. West changed its name to Takara Leben Co., Ltd. and merged with Takara Leben Co., Ltd. Tohoku. Transfer Head Office to
Marunouchi, Chiyoda-ku, Tokyo.

November, 2022

Green Energy LLC, a consolidated subsidiary, conducted a tender offer to Takara Leben Infrastructure Fund Inc. The investment corporation became
a consolidated subsidiary. Takara Leben Infrastructure Fund Inc. was delisted.

February, 2023

Takara Leben Infrastructure Fund Inc. was delisted through a Equity securities tender offer.

June 2023

Renewable Energy Business "MIRARTH Green Tech Co., Ltd." is established.

2023 November

Established MIRARTH Agri Tech Co., Ltd., a biofuels business.

2024 March

Takara PAG Real Estate Investment Advisor Co., Ltd. changed its name to MIRARTH Real Estate Investment Adviser Co., Ltd.

-3-

3[Business Details]
Our main groups are as follows.
We operate under 4 Segment: Real Estate Business, Energy Business, Asset Management Business, and Other Businesses.
Takara Leben Co., Ltd., a consolidated subsidiary, is mainly engaged in the business of new condominiums.
Leben Community Co., Ltd., a consolidated subsidiary, is mainly engaged in the comprehensive business of managing condominiums for sale.
Leben Home Build Co., Ltd., a consolidated subsidiary, is mainly engaged in the detached house sales business and the construction subcontracting business.
Takara Leben Realnet Co., Ltd., a consolidated subsidiary, is mainly engaged in the real estate distribution business.
Leben Zestock Co., Ltd., a consolidated subsidiary, is mainly engaged in the renewal and resale business.
Leben Trust Co., Ltd., a consolidated subsidiary, is mainly engaged in the leasing and administration business.
Takara Leben(Thailand) Co., Ltd., a Consolidated subsidiaries, is mainly engaged in the business of investing in real estate.
Takara Asset Management Co., Ltd., a consolidated subsidiary, is mainly engaged in the investment-management business.
MIRARTH Real Estate Investment Adviser Co., Ltd., a Consolidated subsidiaries, is mainly engaged in the investment management business.
Leben Clean Energy Co., Ltd., a consolidated subsidiary, is mainly engaged in renewable Energy Business.
(NOTE)1. Takara Asset Management Co., Ltd. changed its name to MIRARTH Asset Management Co., Ltd. on April 1, 2024.
2.Takara PAG Real Estate Advisory Ltd. changed its name to MIRARTH Real Estate Investment Adviser Co., Ltd. on March 29, 2024.
3.Leben Clean Energy Co., Ltd. changed its name to MIRARTH Energy Solutions, Inc. on April 1, 2024.

(1)Real Estate BusinessAs a new condominium business, our group develops, develops, and sells the "LEBEN" and "NEBEL" series on a nationwide basis. As a Liquidation
Business, the Group develops real estate such as residential properties and office buildings, and sells them to REIT and other markets. This segment conducts
Real Estate Business in general, including Other, the renewal and resale business, the new detached house sales business, the leasing and administration business,and the real estate brokerage business.
(2)Energy BusinessOur group conducts power generation business using renewable energy nationwide.
(3)Asset Management BusinessWe provide Asset Management Business on renewable power generation Facilities, residential properties, office buildings, and other real estate.
(4)Other Businesses
・Construction business
Leben Home Build Co., Ltd., a consolidated subsidiary, is engaged in the construction business.
・Hotel BusinessOur group is engaged in hotel business.
・For Other BusinessOur group is engaged in businesses other than those mentioned above.

-4-

The business structure is shown below.

-5-

4[Status of Affiliated Companies]

Name

Address

Capital stock(Millions of Details of major businesses
yen)

Share of voting
rightsPercentage orPercentage (%)
owned

Affiliated Details(Consolidated Subsidiaries)
Interlocking positions
Takara Leben Co., Ltd. (NOTE)1

Chiyoda-ku, Tokyo

400

Real Estate Business

100.0

held by directors
With financial support

Leben Community Co., Ltd.

Leben Home Build Co., Ltd.

Chiyoda-ku, Tokyo

Yokohama City,
Kanagawa Prefecture

60

200

Real Estate Business

100.0

Other Businesses(100.0) held by directors

Real Estate Business

100.0

Other Businesses(100.0) held by directors

Takara Leben Realnet Co., Ltd.

Chuo-ku, Tokyo

30

Real Estate Business

Leben Zestock Co., Ltd.

Chiyoda-ku, Tokyo

490

Real Estate Business

60

Real Estate Business

Leben Trust Co., Ltd.

TakaraLeben(Thailand)Co.,Ltd.

Yokohama City,
Kanagawa Prefecture
Bangkok, Kingdom ofThailand

Leben Community Vietnam

VietnamCo., LTD.

Haiphong City

Leben Clean Energy Co., Ltd.
(NOTE)1,2

MIRARTH Green Tech Co., Ltd.

MIRARTH Agri Tech Co., Ltd.

Takara Asset Management Co., Ltd.
(NOTE)360
Million
THB
21,218Million

Real Estate Business

VND

Shinjuku-ku, Tokyo

2,155

Energy BusinessShinjuku-ku, Tokyo

50

Energy Business

Kingdom of cambodia
Phnom Penh

600
Thousands

Energy Businessof US$

Chiyoda-ku, Tokyo

250

Minato-ku, Tokyo

50

Shibuya-ku, Tokyo108

MIRARTH Real Estate Investment Advisor Co.,
Ltd.

Other Businesses(NOTE)4

Asset Management
Business
Asset Management
Business

100.0Interlocking positions

Interlocking positions

Interlocking positions(100.0) held by directors
100.0Interlocking positions(100.0) held by directors
100.0Interlocking positions(100.0) held by directors
100.0(100.0)100.0(100.0)

100.0

45.0
(45.0)
45.0(45.0)

100.0

90.0

-

-

With financial support

With financial support-

Interlocking positions
held by directors-

Other 14 companies(Equity-method affiliates)
Minato LLC

Real Estate Business

34.0(34.0)

Other 4 companies(NOTE)1. This is a specified subsidiary.
2.Leben Clean Energy Co., Ltd. changed its name to MIRARTH Energy Solutions, Inc. on April 1, 2024.
3.Takara Asset Management Co., Ltd. changed its name to MIRARTH Asset Management Co., Ltd. on April 1, 2024.
4.Takara PAG Real Estate Advisory Ltd. changed its name to MIRARTH Real Estate Investment Adviser Co., Ltd. on March 29, 2024.
5.Share of voting rights percentage in parentheses is the indirectly owned percentage.

-6--

5[Status of Employees](1) Consolidated level
As of March 31 2024
Segment name

Number of employees

Real Estate Business
Energy Business
1,377(110)
Asset Management Business
Other
Total

1,377(110)(NOTE)1. Number of employees is the number of employees.
2.Figures in parentheses in Number of employees column indicate the annual average number of temporary employees (equivalent to 8 hours a day per
employee).
3.Our corporate group does not have a management organizational structure for each Type of the business, and the same employees are engaged in Type ofseveral businesses.

(2) Status of Submitting Company
As of March 31 2024
Number of employees
38(1)

Average age(years)

Average length of service (year)

38.1

1.4

Segment name

Average annual salary (thousand yen)
7,792

Number of employees

Real Estate Business
Energy Business
38(1)Asset Management Business
Other
Total

38(1)

(NOTE)1. Number of employees is the number of employees.
2.Figures in parentheses in Number of employees column indicate the average number of temporary employees per year (equivalent to 8 hours per day).
3.Average annual salary includes Bonus and non-base salary.
4.We do not have a management organizational structure for each Type of our business, and the same employees are engaged in Type of several businesses.

(3) Union Information
The labor union has not been formed, but labor-management relations have remained prosperous.

-7-(4) Percentage of Women Workers in Managerial Positions, Rate of male workers taking childcare leave and Differences in Wages of Men and Women Workers① Submitting Company
Submitting Company is not subject to the obligation to publish under the provisions of the Act on Promotion of Women's Working Life (Act No. 64 of 2015)
and the Act on the Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave (Act No. 76 of
1991). Therefore, the description is omitted.

② Consolidated subsidiaries
Current fiscal year

Name

Percentage offemaleemployees inmanagerial
positions(%)(NOTE)1.

Difference in wages of male and female workers (%)(NOTE)1.

Rate of maleworkers taking
childcare leave(%)(NOTE)2.

Total labor

Supplementary
Explanations

Part-time andfixed-term
workers

Regularworkers(NOTE)3.
Takara Leben Co., Ltd.

10.4

40.9

75.2

75.4

34.1

Differences in wages
between men and women(NOTE)4.
(NOTE)3.

Leben Community Co., Ltd.

11.4

25.0

69.0

67.1

72.8

Differences in wages
between men and women(NOTE)5.

(NOTE)1. Calculated in accordance with the provisions of the Act on Promotion of Women's Active Participation in the Workplace (Act No. 64 of 2015).
2.Based on the provisions of the "Act on the Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care
Leave" (Act No. 76 of 1991), the ratio of taking child care leave, etc. under Article 71-4, I of the "Ordinance for Enforcement of the Act on the Welfare ofWorkers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave" (Ordinance of the Ministry of Labour No.
25 of 1991) has been calculated.
3.Period covered: Reiwa 5 Business Year (from April 1, 2023 to March 31, 2024)
Wages: including base pay, remuneration for overtime work, bonuses, etc., and excluding retirement allowances, commutation allowances, etc.
Full-time employees: For seconded employees, this includes employees seconded from us to outside the company, and excludes employees seconded
from other companies to us.
Part-time and fixed-term employees: including fixed-term employees, part-timers, and non-regular employees, excluding temporary employees.
4.Supplementary Explanations on differences in wages between men and women of workers<Full-time employees>
Among full-time employees, if they Category in managerial and non-managerial positions, the difference will narrow to around 5-15%. However,since the percentage of women in managerial positions is 10.4%, promotion to women will be systematically promoted.
<Part-time and fixed-term employees>
Divergences have occurred due to the mix of part-time employees and fixed-term employees.
When part-time employees and fixed-term employees are Category, only male employees are fixed-term employees, and there is no discrepancy
among part-time employees.
5.Supplementary Explanations on differences in wages between men and women of workers<Full-time employees>
Since the ratio of female managers is 11.4%, the promotion of female employees will be systematically promoted.

-8-Ⅱ. [Business Conditions]
1[Management Policy, Business Environment and Issues to be Addressed]
Our business Policy, business environment, and issues to be addressed are as follows.
Forward-looking statements in the text are based on our judgment as of the end of the fiscal year under review.
(1)Management Policy
Describe Our Purpose and Our Values

Our Purpose

To design sustainable environments for a happier future for both people and our planet.
Our Values

Passion & Inspiration
To be passionate about creating vibrant environments and to inspire and be inspired by people who share our vision.

Sustainability
To create a sustainable world where people, nature, and society coexist in harmony.

Value Creation
To continue to evolve and keep up with the rapid change around us to create new value.

Diversity & Co-creation
To value each individual's ideas and co-create a diverse and equitable environment with the local communities.

Integrity and trust
To generate a trusting relationship among people and society through protection of our safety and security.

(2)Management Strategy, etc.
<Strategy Overview>
In May 2021, we announced a new medium-term management plan for the fiscal year ending March 2025, and formulated a long-term vision entitled"Establish a National Brand-To be a company trusted by all stakeholders" as a professional in space, urban and renewable energy development. The policy iscentered on the following 7 pillars.

① Further expansion of core businesses② Maximize group synergy③ Optimize the business portfolio④ To establish a stable financial base
⑤ Improving productivity and creating new services through DX promotion⑥ Aggressive Response to ESG⑦ Developing human resources and creating a rewarding work environment-9-

On the date of April, 2022 1, we changed our business Segment and restructured our business from the previous 5 business Segment into 4 categories: Real
Estate Business, Energy Business, Asset Management Business, and Other Businesses to clarify the profitability of Segment and clarify our business
responsibilities. In this way, we have decided to further promote business development that does not rely solely on our mainstay Real Estate Business.
In addition, as announced on May 15, 2023 in the "Revision of the Medium-Term Management Plan and Formulation of Medium-to Long-Term Energy
Business Strategies," the Group will establish a foundation for medium-to long-term growth through Energy Business as the mainstay of Real Estate Business,
which is its core business, in addition to stable growth.

<Specific Strategy>a)New condominium businessAs a core business, we will develop the Leben brand and the Nebel brand in the Tokyo metropolitan area and central urban areas in line with thebasic Policy of rebuilding a nationwide stable supply system. In the Tokyo metropolitan area, we aim to achieve annual sales of 2200 units over the
medium term, primarily targeting the family, single-person DINKS group, and active seniors group in regional city centers.
b)Securitization business
Based on the basic Policy of continuing to invest between 300 yen and 50 billion yen annually, we will actively develop rental residential
properties and office buildings to optimize our Assets portfolio. In addition, when Assets is sold to Takara Leben Real Estate Investment Corporation,a real estate appraisal report is obtained to review the range of reasonable transaction prices and are approved internally.
c)Detached house sales businessOur basic Policy is to play a complementary role in the new condominium business as a short-term collection business. We will restructure ourpurchasing and supply systems by strengthening area-marketing, and thoroughly build collection cycles in a short period of time.
d)Renovation Resale Business
Based on the basic Policy of establishing a stable renewal business cycle, the Group will make the most of its intra-Group real estate network tosecure appropriate inventories in order to respond to the growing demand for used equipment in recent years.
e)Rental BusinessAs a recurring revenue business, we will build a portfolio centered on residential offices under the basic Policy of securing stable earnings.
f)Property Management BusinessWith the basic Policy of securing stable earnings as a recurring revenue business, we will further accumulate management Units and capturebusinesses derived from management, with the aim of expanding revenue oppotunities.
g)Overseas BusinessAs a complementary part of our domestic business, we will focus on real estate sales and derivative management businesses with Southeast Asian
countries as our immediate targets.
h)Energy BusinessAs a future growth business, the Company has changed its Policy to securing stable profits by holding power generation Facilities through atender offer for Takara Leben Infrastructure Fund Inc., which was announced on September, 2022 28 and concluded on November, 2022 11. As aresult, as announced in "Revisions to the Mid-term Management Plan and Mid-to-Long-term Energy Business Strategic Development Notice" dated
May 15, 2023, we expect that Net income attributable to owners of parent under this Tender Offer will be more than 1 billion yen effective from thefiscal year ending March 2025, despite the impact of temporary costs.
At the same time, we will build a PPA (electricity sales contract) model that does not rely on the feed-in tariff system. In this way, Energy
Business will become a new driving force behind the Group's growth, and grow it as a mainstay of II.
i)Asset Management BusinessWe will strive to grow as a stable fee-based business by expanding the size of Assets under management.
j)Other Businesses
By leveraging our expertise in the 3 pillars of Real Estate Business, Energy Business, and Asset Management Business to take on challenges in
new fields and create new value, we aim to establish ourselves as a next-generation independent Segment.

(3)Objective indicators for determining the status of achievement of management Target
We manage our business with an awareness of Equity ratio, LTV, D/E ratio and ROE. On May 15, 2023, we announced the revision of the Medium-Term
Management Plan and the formulation of medium-to long-term Energy Business strategies. Target was changed to Equity ratio of 20% or more (Term end in March
2025), less than LTV65%, a D/E ratio of less than 3.0 times, and ROE13% or more.

- 10 -

(4)Business environment
The business environment surrounding our group is in the midst of rapid change due to a variety of factors, including the ongoing aging of society with a declining
birthrate, depopulation in regional cities, soaring construction costs, and uncertainty about the future of interest rates. We will respond flexibly and swiftly to thesechanges to maximize corporate value and realize "To design sustainable environments for a happier future for both people and our planet.", which is a part of ourbusiness.
The specific issues to be addressed by the Group are described in "(5) Priority Business and Financial Issues."(5)Prioritized business and financial challenges① Response to real estate market conditions
The Group's core business is the new condominium business, which is subject to relatively large changes due to various external environments, such as surging
sales prices, interest rate trends, and the supply-demand balance of condominiums. Under these circumstances, we are continuing to build a structure that is lesssusceptible to the external environment by consistently focusing on product development and supply for real demand, which is not for investment purposes, but for
which there is stable demand. In the Tokyo metropolitan area, there is a polarization in the market of population inflows and population outflows in regional cities.
In the Tokyo metropolitan area, we supply in convenient locations near train stations, and in regional cities, we promote the development of compact cities in city
centers, which contributes to the development of products that meet customer needs and the revitalization of each city.
The fluidizing business tends to be more susceptible to the impact of the external environment than the new condominium business. However, the Group will
work to improve safety by focusing on the development and acquisition of residential properties with solid demand while keeping an eye on the overall portfolio
balance.

② Aggressive ESG response
We have set the 4 Important theme of sustainability of "realizing a decarbonized society," "creating a sustainable community," "improving Well-being," and"strengthening governance." We have identified 10 Important issue that correspond to each of them, and will promote initiatives to resolve these issues.
E:With regard to the environment, as a response to climate change associated with the impact of global warming and catastrophic disasters, there is a need forenvironmental initiatives to realize a de-carbon society, such as reducing greenhouse gas emissions and utilizing renewable energy. Against this backdrop, we haveset medium-and long-term targets for the reduction of greenhouse gas emissions for the Group as a whole in order to achieve carbon neutrality. In addition topromoting ZEH of condominiums and development renewable energy plants, we will actively promote PPA (electricity sales contracts) in which power generatorsand electricity users enter into direct contracts. In these ways, we will contribute to the realization of a carbon-group society. S:In the area of society, we will revitalize
local communities through the supply of housing such as newly built condominiums and promote the creation of sustainable urban areas. G:With regard to governance,
we have established various committees, including the Nomination, Compensation, Compliance and Risk Management Committee Committees. We have alsoestablished a whistle-blowing hotline, and are operating appropriately. Through these and other measures, we are working to strengthen governance by ensuring
thorough compliance, strengthening Corporate Governance, strengthening our risk-management system, and establishing an internal-control system.

③ Strengthening the financial foundation
In principle, we finance the acquisition of business sites and earning-generating real estate through loans from Financial institutions and other sources. Althoughinterest-bearing Liabilities increased due to the expansion of businesses such as real estate, energy, and asset management, we will promote the diversification offinancing methods and strengthen our financial base. We will strengthen stock businesses and expand EBITDA, while continuing to closely monitor financial stability.
At the same time, we will strive to improve Equity ratio and reduce the ratio of interest-bearing Liabilities.

④ Recruiting human resources and developing human resources
As our group expands its business domains and business areas, the number of personnel required is increasing. We will strive to secure excellent human resources
by further aggressively recruiting new graduates and mid-career employees, as well as working on diversity, equity and inclusion. In addition, in order to build astrong organizational structure, we will continue to actively invest in human capital, such as by implementing training tailored to each rank, conducting appropriate
evaluations, and building a compensation system. In addition, by promoting work style reforms, such as the development of a remote work environment and theintroduction of a regional employee system, we will enhance the well-being of our employees and improve our corporate value.

⑤ Promoting Digital Transformation (DX)In response to the recent trend toward digitalization, we believe that it is necessary to expand the use of digital solutions, which are directly linked to customer
convenience and increased corporate value, in addition to conventional services, in order to maintain our competitive advantage. In order to respond to market needs
in a timely manner, we will aggressively invest in IT while assessing cost-effectiveness. By improving the literacy of digital technologies and developing humanresources with the thinking to realize innovation, we will promote DX utilizing digital technologies and promote innovation in the value chain.

- 11 -

2[Approach and Initiatives for Sustainability]
Our approach and initiatives for Sustainability are as follows.
Forward-looking statements in the text are based on our judgment as of the end of the fiscal year under review.

<Basic Sustainability Policy>
MIRARTH Holdings Group has set "To design sustainable environments for a happier future for both people and our planet." as its Our Purpose, and by engaging in
Sustainability activities through its businesses, such as supplying housing and introducing renewable energy, the Group will contribute to solving social issues andachieving Sustainability development Target (SDGs), earning the confidence of various stakeholders and society, and aiming for sustainable development.

(1) Sustainability General Governance/Risk Management<Sustainability Promotion System>
We have established a Sustainability promotion system based on the recognition that addressing Sustainability issues is a key management issue, including
consideration for global environmental issues such as climate change, respect for human rights, consideration for the health and working environment of
employees, fair and appropriate treatment, fair and proper transactions with business partners, and risk management in the event of natural disasters, etc.
With Representative Director as Chair, we have established Sustainability committee, which is composed of the presidents and divisional managers of Director
and Group companies. This committee promotes ESG strategies, decides Policy and measures related to Sustainability, examines and promotes Important issue(materiality), reviews progress, and discusses improvement plans.

Our Sustainability promotion system is shown below.

- 12 -

<Important theme of sustainability and Materiality Identification Process>In order to contribute to Sustainability and increase corporate value, our group identifies materiality (Important issue) and implements countermeasures throughthe following processes. Our Group is contributing to the realization of a Sustainability society and the enhancement of corporate value by actively addressing social
issues.
The process for identifying Important theme of sustainability and materiality in our group is as follows.

1.List of social issues
We identified social issues from an environmental, social, and governance (ESG) perspective based on analyses of ESG assessment organizations and market
trends.
2.Identifying risks and opportunities
We have clarified the risks and opportunities for MIRARTH Holdings Group in various issues. Through this analysis, we have identified the issues andopportunities that we may face in our corporate activities.
3.Identification of stakeholder impacts
We evaluated how and how MIRARTH Holdings Group is affected by these issues.
4.Importance ratings
Particularly important social issues were selected through discussions at workshops attended by the management of Group companies. These issues are
directly linked to the strategic decision-making of MIRARTH Holdings Group. These issues affect corporate growth over the long term.
5.Consideration of measures
We considered measures to mitigate risks and expand opportunities for issues of high importance. Through the workshop, we drafted concrete action planssuch as technological innovation and improvement of business processes.
6.Identification of Materiality
Based on the above process, the materiality of MIRARTH Holdings Group was identified and its validity was verified.
7.Setting Up KPI
We have established a KPI to measure specific results based on the selected materiality. As a result, we regularly evaluate the effectiveness of our measuresand achieve Sustainability growth. Materiality and Target and KPI's Details are publicly announced Details approved by Sustainability committee.

- 13 -

(2) Critical Sustainability Items
The significant Sustainability items identified above in our grouping through governance/risk management are as follows:
Important theme of sustainability

E
Environment

Materiality

Realization of a decarbonisation society
・Responding to Climate Change and Decarbonization
We will strive to mitigate climate change issues by working to ensure a stable supply of
renewable energy, while at the same time aiming to develop energy-saving products with low

・Promoting the stable supply and use of renewable energy

environmental impact.
Sustainable Urban Development
・Achieving Sustainable Growth in Local Communities
We will contribute to the realization of a Sustainability future by developing local communities

Sand enriching people's lives, and by providing products and services that respond to social issues

・Responding to Declining Birthrate and Aging Population and Declining

and changing needs.

Workforce

Society・Ensuring Employee Health and Safety

Improving Well-being
In addition to protecting mental and physical health and safety, we will foster a workplace culture
in which diverse human resources can play an active role, and build co-creation relationships
through dialogue with stakeholders.

nance

Promotion of (DE&I)
・Respect for human rights and response to supply chains

G
Gover

・Diversity Equity & Inclusion

・Consolidation of Corporate Governance
Strengthening governance
By promoting sound corporate activities and ensuring transparency in decision-making, we aim to

・Tightening risk management

fulfill our corporate social responsibilities and sustainably increase our corporate value.
・Implanting business ethics and compliance

Policy on Human Resource Development and Policy on Internal Environmental Improvement
As our group expands its business domains and business areas, the number of personnel required is increasing. We will strive to secure excellent human resources
by further aggressively recruiting new graduates and mid-career employees and by engaging in diversity equity and inclusion (DE&I). In addition, in order to build
a strong organizational structure, we will continue to actively invest in human capital, such as by implementing training tailored to each rank, conducting
appropriate evaluations, and building a compensation system. In addition, by promoting work style reforms, such as the development of a remote work
environment and the introduction of a regional employee system, we will enhance the well-being of our employees and improve our corporate value.
In addition, we operate a personnel system based on the belief that each and every employee is a company that together creates lasting growth for the future.
Takara Leben Co., Ltd. has revised its personnel system to a new 1 that stably generates the human resources needed to achieve its management plan. This system
is based on responding to the changing times and on a par path.
Under the new system, specific daily action guidelines to be taken by employees were established, and evaluation items were set for each grade and job category.
In addition, in order to realize fair, highly transparent evaluation and treatment, the evaluation meetings were held to revise the evaluation criteria from theviewpoint of the evaluation criteria. Through these initiatives, we aim to improve evaluation skills by providing more convincing feedback to employees andpromoting understanding of the significance of evaluation systems and evaluation standards for managers.
At the same time, the Bank has raised wages by about 6.3% in accordance with recent price increases and the governmental Policy, and is working to create anenvironment in which employees can work without worry.

- 14 -

<Basic Policy on Personnel System>
Personnel System to Stably Generate the Human Resources Necessary for Achieving the Management Plan
・Establishment of a system for employees to draw up a career vision by clearly laying out the image of the human resources that the company seeks, centeredon the values formulated based on the " Purpose"
・Acquisition and retention of talented personnel and improvement of motivation through appropriate allocation of personnel costs
・Education and selection to create talented management personnel
・Increasing employee satisfaction and motivation for growth through fair and transparent evaluation and treatment

In addition, we have established the following basic educational training Policy and conduct various training programs with the aim of growth each employee
and enhancing the collective strengths of our organization.

<Basic Policy for Education and Training>
・Fostering human resources not only based on the vision, but also proud of our stakeholders as a member of society
・Implementation of programs that enable each employee to feel a sense of self-growth and build a career design
・Improvement of organizational and job management skills, such as leadership and training skills required for each rank in conjunction with the personnel
evaluation system, and organizational management skills
・Acquisition of expertise, skills, and other skills necessary for the execution of each job(3)Indicators and Target
Our Group has formulated KPI linked to Important theme of sustainability and identified materiality (Important issue) from Year ending March 31, 2022 and is
promoting group-wide initiatives.
Year ending March 31, 2024's Target and Actual for the year ended March 31, 2025 are as follows:<Target and Actual (Year ending March 31, 2024)>
Year ending March 31, 2024

Sustainability
Important theme

Creating a Lifestyle with Value

Formation of communities

KPI
TargetActualProposal of new services for lifestyles

5 projects

20 properties

Supply of newly built condominiums overseas

3 projects ※1

5 projects

NEBEL supplies

3 buildings

5 buildings

Number of redevelopment projects

2 projects

1 case ※2

Sponsorship of local communities

10 properties

20 properties

Implementation of Board of Directors effectiveness assessment〇※3

Enhancing and Strengthening the Corporate Governance System〇

Consideration of introduction of clawback clause△※4

Implementation of anti-corruption education and training△※5

Promote understanding of directors and employees regarding human rights issues〇

Number of cases of unfair treatment

0 projects

0 projects

Understanding the recognition rate of the internal reporting system through questionnaires〇

Health Checkup Rate

100%

98.9%

Stress check rate

100%

92.4%

Percentage of paid holidays taken

70%

73.1%

Employment ratio of the disabled:

2.3%

2.2%
※1

Percentage of female managerial staff

9.5%

Return to work for maternity and childcare leave

100%

-※6

Training hours per employee

24 hours

42.9 hours

Satisfaction with Sales Staff Survey

90%

89.9%

- 15 -

11.5%

Year ending March 31, 2024

Sustainability
Important theme

KPI
TargetNumber of nonconformities related to business processes and quality

10 or less0 projects

Implementation of a meeting to share preventive measures

5 times or more-※7

Development of SQMSⓇ masters

2 or more-※7

Percentage of Housing Performance Evaluation Sheets Acquired

100%

100%

0%

0%

0 projects

0 projects

Safety conference

Once a year

Once

Special patrol (safety check)

Quarterly

3 times

Twice a year

3 timesAcquisition rate of A rank: 90%

97.01%

Not more than 1.83%

0%standards

Accident frequency rate and lost time frequency rate
Provision of high-quality, comfortable
spacesActual(*Target: Employees)
Number of lost-time injuries(*Target: Employees)

Number of safety and health training sessions held(*Target: Employees)
Results of the supplier survey
Accident frequency rate and lost time frequency rate(*Target: Supplier)
To acquire and disclose CO2 emissions〇※8

CO2 Emission Reduction Target Configuration〇※8

Certification rate for energy conservation grade (flat 35)

Detached houses 100%

Detached houses 100%

Support for cultural cultivation

5 projects

11 projects

ZEH Condominium Certification

1 building

1 building

Acquiring CASBEE certification

Acquire A Rank or higher 1 building

1 building

New operating capacity of renewable energy plants

20MW

43MW

Cultivating the environment and culture※1

Total generation scale

360MW

368MW※1

Acquire quantitative data on resources and water and set reduction targets〇

Formulation of manuals for BCP measures△※9※1 Established as medium-term Target for the year ended March 31, 2025.
※2 Number of new participation. Other and 10 properties of businesses under construction and promotion (including projects for the improvement of prime buildings, etc.).
※3 Conducted anonymous questionnaire surveys and interviews with all Director and Audit & Supervisory Board members, including Outside Director, conducted by external consulting institutions,and conducted third-party evaluations.
※4 Compensation Committee conducted a review of the executive compensation system and continued to consider it.
※5 Some compliance training sessions were held.
※6 None applicable.
※7 Not implemented due to quality organizational review.
※8 Scope: Scope1, 2 and 3.
※9 Establishment of an initial response manual for emergencies such as a major earthquake.

- 16 -

<Target (Year ended March 31, 2025)>
Year ended March 31, 2025
Important theme of sustainability

Be related SDGs

Materiality

KPI
Target※1

of 45% (compared to Fiscal Year

Rate of Reduced CO2 Emissions (Scope1,2 and 3)
2022)

Realization of aE
Environment・Responding to Climate Change and Decarbonization

Number of in-house initiatives contributing to energy conservation

10 properties

decarbonisation society
Aggressive expansion of renovated and renovated condominiums
We will strive to mitigate climate change issues

Total generation scale of renewables

780MW※2

Acquisition of environmental performance certification

5 buildings

Adoption rate of ZEH level in detached houses

100%※3

by working to ensure a stable supply of
renewable energy, while at the same time
aiming to develop energy-saving products withlow environmental impact.

・With a stable supply of renewable energy
Promoting the use

Promote the use of renewable energy in the new condominium business

Number of housing supply projects overseas

Sustainable Urban
Development

Number of Redevelopment and Rebuilding Projects
・Achieving Sustainable Growth in Local Communities

Survey of satisfaction with condominium management operations

3 projects
10 properties ※4
5 points or more/6 points

Number of nonconformities related to business processes and quality
10 or less

We will contribute to the realization of astandards

Sustainability future by developing local
Per capita training hours

communities and enriching people's lives, andby providing products and services that respondto social issues and changing needs.

25 hours

・Responding to Declining Birthrate and Aging Population andPromote acquisition of certification for DX businesses
Declining Workforce
Proposal of new services for lifestyles

10 properties

S
Society

Stress check rate

100%※5Percentage of paid holidays taken

70%※6Rates of men taking child-care leave

85%※1

Implementation of Special patrol (safety check) at Construction Sites

Quarterly

・Ensuring Employee Health and Safety

Improving Well-being
In addition to protecting mental and physicalhealth and safety, we will foster a workplaceculture in which diverse human resources can

Employment ratio of the disabled:

2.5%

Percentage of female managerial staff

20%※1

・Promoting Diversity, Equity & Inclusion (DE&I)

play an active role, and build co-creation
Ratio of female employees newly hired

30%

Implementation of Safety conference

Once a year

relationships through dialogue withstakeholders.
・Respect for human rights and response to supply chains

Establishment of human rights due diligence system
Promoting Supply Chain Management
Implementation of Board of Directors effectiveness assessment

G
Governa
nceStrengthening governance・Consolidation of Corporate GovernanceConsideration of introduction of clawback clause
Verification and management of critical risks

By promoting sound corporate activities and・Tightening risk management
Development of BCP manuals

ensuring transparency in decision-making, we
aim to fulfill our corporate social

Implementing Compliance Training

Annual 3 times

Implementation of compliance questionnaires for all employees

Once a year

responsibilities and sustainably increase ourcorporate value.

・Implanting business ethics and compliance

Recognition rate of the internal reporting system※1 Set as a medium-term Target up to Fiscal Year 2030.
※2 Calculated in terms of solar MW and set as the medium-term Target for the period ending March 2030.
※3 Residential houses whose thermal insulation performance class 5 and primary energy consumption class 6 have been acquired (excluding renewable energy levels).
※4 Including businesses for improvement of prime buildings, etc.
※5 Statistics based only on enterprises implementing the program.
※6 Annual paid holidays are aggregated for all Grant companies.

- 17 -

100%

<Addressing Climate Change (Initiatives for TCFD Recommendations)>
・Our awareness of climate change
MIRARTH Holdings Group (hereinafter referred to as "our group") recognizes that the progress of climate change is a scientific fact. Accordingly, we believethat measures to deal with the expansion of natural disasters caused by climate change, such as severe typhoons and heavy rains, frequent heat waves and droughts,
and global sea-level rises are essential. In addition, we have positioned climate change as a (material) issue that brings significant changes to the naturalenvironment and social structure and has a significant impact on our group's management and overall business. As a global initiative to mitigate climate change, we
anticipate a shift toward socioeconomic decarbonization, including the establishment of a framework for reducing greenhouse gas emissions and strengthening
emission regulations. We recognize that there are growing social demands for reducing GHG emissions at the development/operation stage in Real Estate Businessand for strengthening resilience. At the same time, Energy Business is seeing growth in demand for renewable energy, which we view as a crucial oppotunity.
・TCFD endorsement (and participating in TCFD consortiums)
MIRARTH Asset Management Co., Ltd. (formerly Takara Asset Management Co., Ltd.) and MIRARTH Real Estate Investment Adviser Co., Ltd. (formerly
Takara PAG Real Estate Advisory Ltd.) announced their endorsement of the recommendations of the Climate-Related Financial Information Disclosure Task Force(TCFD(Task Force on Climate-related Financial Disclosures), established by the Financial Stability Board (FSB) in June 2022, to promote Information Disclosure
on climate-related issues.
With this as our starting point, we analyze and respond to the risks and opportunities that climate change will have on our business, and strengthen and enhance
our Information Disclosure in line with the "Governance," "Strategy," "Risk Management," and "Indicators and Target" recommended by our TCFD
Recommendations.

(1)Governance
We have established a governance system centered on Board of Directors's Supervise and Sustainability committee to address the risks and opportunities ofclimate-change. The chief executive officer in charge of responding to climate change is the president of Representative Director, and the executive officer incharge of responding to climate change is Director in charge of Sustainability. Executive officers on climate-related issues regularly Report Chief Officers on
climate change response issues at Sustainability committee, including identifying and assessing impacts from climate change, managing risks and opportunities,
progressing on adaptation and mitigation initiatives, and establishing indicators and Target. Participants from Sustainability committee deliberate and consider theagenda items before making decisions by the Chief Officer on climate-related issues.
(2)Strategy
・Scope of the analysis
In this scenario-analysis, we targeted 2 of our main businesses, namely Real Estate Business and Energy Business, which are considered to be relatively impacted
by climate-change.
・Referenced external scenario
TCFD's recommendation is to explain the resilience of the company's strategy based on multiple scenarios, including 2°C or less. We conducted scenario
analyses of our Group's businesses in order to take account of climate-related risks and opportunities. An overview of scenario analysis is as follows: Scenario
analysis and the process for identifying and evaluating our risks and opportunities are described below in "Risk Management."
Source1.5-2 °C scenario

4°C scenario

IEA (International Energy Agency)

NZE2050STEPS

IPCC (Intergovernmental Panel on Climate Change)

RCP4.5

RCP8.5[Reasons for Scenario Selection]●IEA NZE2050(1.5-2 °C transition risk)
As the main source of GHG emissions is energy-consuming, a IEA that can be referred to is selected.
●IPCC RCP4.5(1.5-2°C Scenario Physical Risks)
Selection of IPCC's Report document, which is regarded as a standardized reference material for weather conditions, that corresponds to the analyticalscenarios for physical risks.
●IEA STEPS (4°C transition)
As the main source of GHG emissions is energy-consuming, a IEA that can be referred to is selected.
●IPCC RCP8.5 (4°C Scenario Physical Risk)
Selection of IPCC's Report document, which is regarded as a standardized reference material for weather conditions, that corresponds to the analyticalscenarios for physical risks.

- 18 -

・World image assumed in each scenario
Each scenario assumes the following global outlook.
1.5-2 °C scenario (high transition risk, small physical risk)
Toward the achievement of Target of the Paris Agreement, social policies and emission controls for decarbonisation will be strengthened, and measures to deal
with climate change will progress. This is a scenario that will keep the global temperature rise at the end of the 21st century Comparison from the pre-industrial
revolution to 1.5°C-2°C. In all aspects, such as policies, investors, and consumers, moves toward decarbonisation or low carbon are becoming more prominent,
and companies are strongly required to respond to climate change, and if they do not respond to such moves, the risk of transition is expected to increase, suchas the reduction of their competitive advantage. On the other hand, the frequency and severity of climate disasters will be kept to a certain extent, and thephysical risks are assumed to be relatively low.
4°C scenario (small transition risk, large physical risk)
It is a scenario in which sufficient climate change mitigation measures are not realized, greenhouse gas emissions continue to increase, and the global
temperature increase at the end of the 21st century Comparison 4°C from before the industrial revolution. Physical risks are expected to increase due to theintensification of natural disasters and the increase in sea-level rises and extreme weather. On the other hand, the transition risk is relatively small due tostagnant efforts for decarbonisation in policies, capital markets, and consumers.
・Identification of Risks, Opportunities and Countermeasures/Strategies
We have identified risks and opportunities in light of the 1.5°C-2°C scenario, in which policies and laws and regulations are strengthened to help realize adecarbonizing society, and the 4°C scenario, in which physical impacts of climate change are caused by severe extreme weather conditions. We have assessed theimpacts on those businesses as follows: The financial impact was assessed qualitatively with reference to each of the aforementioned scenarios. We will also
promote the following initiatives in response to identified risks and opportunities.
[Real Estate Business]
Financial impact
Classification

Policies andlaws

Major risks and opportunities

Our financial impact

Term

Strengthening Taxation throughSales volume decreased due to an

Short-

the Introduction of Carbon Tax

increase in sales prices.

term

Strengthening of various
regulations based on energy
conservation policies

Technical

Transition
Risk

MarketIncreased development costs forregulatory compliance

Mediumterm

Evolution and diffusion of

Costs of developing andrenewable energy and energy-

introducing new technologies

saving technologies

increased

Increase in response to transition

Increase in expenses related toMediumto low-emission technologies

new measures and introductions

term

Increase in service prices by

To develop ZEB/ZEH and otherrelated suppliers against theeco-friendly properties and to

Mediumbackdrop of expansion ofincrease construction, renovation

term

decarbonisation needs

and repair costs

Mediumterm

4℃
Scenario

2/1.5℃
Scenario

Small

Medium

Large

Large

Countermeasures and strategies

Target setting and control of GHG
emissions
Enhance energy-saving performance andstrengthen sales strategy throughcollaboration with suppliersCollect information on new technologies

MediumLargeand services and develop and introduce newtechnologies as appropriate

Small

Small

MediumMedium

Large

Large

Securing specialist human resources andbuilding organizational and internal systems

Stabilize prices through collaboration with
suppliers

Increasing scarcity of stormresistant locations andintensifying competition in
acquiring sites in favorable
Reputation

Lower sales due to loss ofLongbusiness opportunities

pull

Location selection and strengthening

same industry

locations
Decline in the value of products

Decrease in sales due to a decline

and brands not responding toin property sales prices and rent

climate change

due to a decline in brand value

Establish energy-saving standards for newly
Mediumterm

Small

MediumPhysics

construction due to storms andIncrease in construction-related

Short-

floods, and lengthening ofexpensesterm

Decline in productivity at
Chronic

construction sites due to rising

Resource

OpportunityProducts andservices

Mediumof construction periodtermPromoting the use of recycled

Reduction of utility costs

Mediumenergyprocured externallytemperatures

efficiency

Cost increase due to lengthening

Increase in demand for lowemission facilities and ZEB/ZEH

term

MediumIncrease in sales

term

condominiums- 19 -

energy-saving standards in existing

Adoption of construction methods resilient
Large

Mediumto storms and floods, and participation inconstruction insurance

construction periods

Riskdeveloped projects and consider installing

properties

Damage to properties under
Acute

Collaboration with other companies in theMediumMedium

Small

Small

Small

MediumThorough Management of Occupational
Safety Considerations at Construction Sites

Introduction of on-site and off-site PPA

Promoting the introduction of low-emission
facilities and renewable electricity

Utilization of Public Support
SchemesCreation of Replacement
MarketOpportunities
Improved evaluation of market
participants in response to climatechangeTo reduce cash outflows

Mediumterm
MediumIncrease in sales

termMediumMediumMediumSmall

MediumMediumBusiness expansion through urban
redevelopment projects, etc.
Develop and promote ZEH/ disasterprevention condominiums

Increase procurement
opportunities and the amount ofMediumfunds procured by increasing

term

corporate value- 20 -

Enhancement of climate-related Information
Disclosure

[Energy Business]
Financial impact
Classification

Policies andlaws

Large risks and opportunities

More stringent environmental
assessments and stricter
regulations
Evolution and diffusion ofTechnical

saving technologies

Transition
Riskrenewable energy and energy-

Increase in difficulty in securing
Marketland due to intensifiedcompetition for energy
conservation

Our financial impact

Term

Cost increase due to lengthening

Short-of development period

termIncreased costs for the

Mediumintroduction of new technologies

Reduction of earning
opportunities due to stagnation of
new development
Reduction of revenues due to a

Reputation

Decrease of the brand value

decrease in customers andrestrictions on access to capital

Acute
Physics
Risk

Damage to power generation

Decrease in sales due to decline infacilities in operation due toelectricity sales volume, andnatural disasters

increase in repair and other costs

term

Shortterm

Shortterm

4℃
Scenario

2/1.5℃
Scenario

Small

Medium

Small

Small

equipment in operation due toconstant abnormal weather

Increase in repair expenses

laws
Of resources
Efficiency

Products andservices
Opportunit

Establishment of a legal system toexpand and promote the spread ofrenewable energy
In-house use of renewable energy

termMedium

Large

Small

Small

Long
term

Short-

procured externallytermexpenses due to inexpensive

climate change

technology developmentyExpansion of demand forrenewable energy

Expansion of renewable energy
investment

Increase in O&M sales
Increase in earning opportunities
through new development andbusiness expansion
Generate sales and earning
synergies with Real EstateBusiness
Rise in stock prices and reduction

Utilization of Green FinanceMediumReduction of utility costs

development in response toin financial costs due toimprovement in corporate value

Selection of business areas with possible
grid connection

Maintain brand image by taking a solid
response to climate change

Large

Large

identification of risks through use of hazard
maps, provision of Profit coverage, andfunding of repair costs

term

Decrease in capital investment

technologies and systematically introduce

Introduction of resilient design concepts,
Short-

volume of development

Technologies and product

Expansion of O&M business

MarketPositive impact on speed andregulations

power generation facilities

Introduction of design philosophy in
MediumMediumMediumterm
Mediumterm
Mediumterm

Shortterm

Shortterm

response to climate change and selection of
product standards

conditions
Policies andPromote business in line with various

Strengthen information gathering on new

Increase in the failure rate ofChronic

Countermeasures and strategies

Small

Large

Small

Small

Small

MediumSecure funding and recruit personnel toexpand Assets
Selection of development sites and securingof funds
Strengthen information gathering on newtechnologies and systematically introduce
power generation facilities

Small

Medium

Small

Large

Small

MediumCapital investment and securing engineers
to expand O&M business
Market research and development of new
business models
Establishment of PJ teams by humanresources with expertise in renewableenergy and real estateMediumMediumSecuring human resources for green finance(3)Risk Management
The process by which we manage climate change-related risks is as follows:①Process of identifying and evaluating risks and opportunities
Critical risks and opportunities related to climate-related issues are discussed in Sustainability committee, and the executive officers responsible for responding toclimate change call in-house representatives to identify and assess climate-related risks and opportunities annually.
②Risk management processes and integration into company-wide risk management programs
The Chief Officer for Climate-related Issues designates and Direction Sustainability committee to identify and address climate-related risks that are critical to theassessed business and financial planning.
In addition, in its efforts to manage risk mitigation or realize opportunities, the Company will attempt to define and monitor and Target Be related KPI (KeyIndicators) where possible.
The executive officers in charge of responding to climate change will Report Sustainability committee once or more annually on the progress and KPI of theirrespective initiatives.
The Chief Climate Response Officer also Direction to take into account, to the extent feasible, climate-related risks that are critical to business and financial
planning in existing enterprise-wide risk management programmes, and integrate risk identification, assessment and management processes.
(4)Indicators and Target- 21 -

We have set key indicators (KPI) and Target to manage and monitor risks and opportunities. The indicators and Target that have been set are as follows.

- 22 -

①Amount of greenhouse gas emissions
Target: Net-zero GHG emissions from MIRARTH Holdings Group business activities (Scope1, 2 and 3) by Fiscal Year 2050.
Using 2022 as the base year, the interim Target shall be set at [45% reduction by Fiscal Year 2030 (total amount basis)] and the long-term Target shallbe set at [zero-net (total amount basis)] by Fiscal Year 2050.
2023 March medium-to long-term Target for reducing greenhouse gas emissions was revised to Target for reducing greenhouse gas emissions in
response to the new Scope3 and SBTi(Science Based Targets initiative of the "Net-Zero Standard" ※1.
・Announced on 2023 March 28: Reduce by 2050% by 2030 (compared to Fiscal Year 2020) and net-zero by 2050 *targeting Scope1 2・Announced on March 29, 2024: Reduce by 45% by 2030 (compared to Fiscal Year 2022), net-zero by 2050 *revised by adding new Scope3※A standardized standard published by 1 SBT Initiative in October 2021 for establishing a Target that limits global temperature increases from pre-industrial levels to no morethan 1.5°C and achieves a net-zero by 2050.

※2 Scope 1: Direct emissions of greenhouse gases by the operator itself (combustion of city gas and other fuels).
Scope 2: Indirect emissions associated with the use of electricity, heat and steam supplied by other companies.
Scope 3: Indirect emissions other than Scope 1 and 2 (emissions of other companies related to the activities of the operator).
※3 Scope 1 and Scope 2 are to be reduced by 70% by FY2030.
※4 Residual emissions are neutralised by using forest-derived absorption and carbon removal technologies outside the value chain.

②Total generation scale of renewables
Target: Build up new 420MW and use Total generation scale as a 780MW by the year ended March 31, 2030.
※MW in terms of sunlight
In Energy Business, we view the transition to a decarbonized society as a key "opportunity," where demand for renewable energy is expected to expand. Target
is to 420MW and 780MW Total generation scale of renewables by the fiscal year ended March 2030. In addition to solar power, we will promote the developmentof wind and biomass power generation, aiming to build a stable power supply system for renewable energy. At the same time, we will work to expand our Energy
Business by strengthening the operation, maintenance, and control of power plants.
Actual of the various performance indicators will be successively disclosed on the sustainability site.
https://mirarth.co.jp/en/sustainability/environment/data/- 23 -

3[Business and Other Risks]
1.Basic Risk Management Policy
MIRARTH Holdings Group identifies and manages risks based on the basic risk management Policy of ensuring the safety of customers, partners, directors,
employees, and their families, fulfilling social responsibilities, harmonizing with the global environment, continuing lasting business, and enhancing corporate
value.
We have also established Risk Management Committee as a promotion system to ensure thorough risk management throughout the Group.

2.Risk Management System(1)About Risk Management Committee
In order to support the stable and Sustainability growth of the Group, we actively and strategically implement risk management by holding regular Risk
Management Committee meetings to oversee risks throughout the Group.
① Frequency of meetings
In addition to the regular meetings of Quarterly, Risk Management Committee holds meetings as needed to respond to changes in industries and themarketplace. This ensures swift decision-making and appropriate responses to risks.

② Composition of members
All Director and Audit officers including Representative Director, Group CFO, Group CRO, and Outside officers are members of Risk Management
Committee, and risk management is closely related to the formulation and implementation of management strategies. With the addition of the heads ofInternal Audit Office and legal departments, the committee examines and makes decisions from a comprehensive risk-management perspective.

③ Minutes Details:
Risk Management Committee agenda is diverse, but it focuses primarily on the following:・Response status of risk items listed as "risk maps" in Risk Management Committee
・Risk response status, such as changes and revisions of response Policy, with respect to risk items other than the above
・Discuss and decide on the importance and priority of responses to new risks
・Confirmation of consistency between corporate strategy and risk portfolio
・Discussion and determination of future risk management operation Policy- 24 -

3.Risk management process
Our group's risk management process is as follows.
[Conceptual Diagram](1)Identification of risks
In the area of risk management, the identification and prioritization of risks that we need to address among the myriad risks in the world is an essential
element. Our group identified and prioritized risks according to the flow below.
[Risk Identification Flow Chart]- 25 -

① Identification of risks at group companies
Comprehensive identification of business strategy risks, operational risks, and hazard risks among Group companies, assessment of the degree of
impact, frequency of occurrence, etc., and quantitative scoring, and prioritization based on this evaluation. Risks with high impact and frequency areprioritized for consideration.
At the same time, we will conduct a primary review of the current status of each risk, risk scenarios, opportunities, and countermeasures.

② Risk extraction
With regard to the risks submitted in ①, we conducted a bird's-eye view and Comparison of the risks submitted, and extracted 47 items.
During the extraction, we conducted internal and external environmental analyses and interviews with management to consider not only priorities but
also the Group's medium-term management plan and the environment in place. In addition, the level of descriptions was smoothed and unified to determine
the current status, risk scenarios, opportunities, and proposals for response to each risk for which a primary examination was conducted.

③ Identification of Risks (Items Posted in Risk Maps)
With regard to the 47 critical risks identified in ②, each of Compliance Committee members listened individually to their views on the items that should
be included in the risk map and the top priorities. After discussions at Risk Management Committee, 16 items that should be included in the risk map wereidentified.

④ Identification of the most important risks
From the 16 risk items listed in the risk map extracted in ③, our group responded with the highest priority and identified the 6 most important risks towatch.

(2)Risk Assessment
Risk assessment methods were evaluated by scoring the risks identified in each company's Business Divisions by multiplying the degree of impact by thefrequency/likelihood of occurrence.
① About "Impact"
Based on the 5 definitions of human damage, monetary damage, loss of sales and Profit, credit, and disposition and guidance from Supervise agencies,
the magnitude of each impact is evaluated on a 3-level scale of "large, medium, and small."- 26 -

② Evaluation of "Frequency and Probability of Occurrence""Frequency of occurrence" is the degree to which such risks may occur, and for "likelihood of occurrence," the probability of occurrence of such risks isevaluated on a 3-level scale of "high, medium, and low" in accordance with our predetermined criteria. The risk is assessed on the basis of "frequency" or"likelihood."
The judgment criteria are as follows.
Criteria for risk analysis
Degree ofDefinitions

influence
Grade Notation

PeopleMoneySales/Profit

CreditDisposal and guidance・A factor that causes
A factor that causes
Casualties to
3

Large

customers, employees
and stakeholders

Financial loss of 100
million yen or more

Net sales's Target (orassumptions) to berevised downward by
more than 10%.

Target (orSupervise A person

・Affects sales andwho receives aassumption) of

Profit over a long

Operating income,period of years.

Ordinary income,・Good relationships

or Net income to bewith stakeholders

revised downward

collapse.

disposition beyond theagency, etc.

・Factors that cause a2

MediumSubstantial physicalFinancial loss of 10

and mental impact on

million yen or morecustomers, employees

and less than 100

and stakeholders.

million yen

A factor that causesof any of Target (orNet sales's Target (orassumptions) of

assumptions) to beOperating income,revised downward by

Ordinary income,

5% to less than 10%.

or Net income from
10% to less thansuspension of licensefrom a government

by 30% or more.

downward revision

disposition ofSupervise Receives
dispositions based on

・Affects sales andOther, laws andProfit in months.

regulations, and・Temporary
suspension of good
relations withregulations in thecourse of licensing
business (Disposition

stakeholders

Details is disclosed to30%.

outsiders).

・Factors that cause
Those with minimal
physical and mental
1

Small

impact on customers,
employees andFactors that cause Net
Financial loss of lessthan 10 million yen

sales's Target (orassumptions) to berevised downward by

stakeholders.

less than 5%.

Target (or・Have a temporary

Supervise Receive

assumptions) ofimpact on sales andoral warnings andOperating income,

Profit.

instructions from

Ordinary income,・Stakeholders haveor Net income to be

an unpleasantgovernment agencies(not disclosed torevised downward

impression of us.

outsiders).

by less than 10%.

Likelihood (frequency)
Grade

Notation

3

High

2

MediumLikelihood (probability)

Details

Grade

Notation

At least once a year

3

High

Frequency every few years

2

MediumDetails
Occurrence with 80% or more probability
Occurrence with probability of 20% to less than
80%

1

Low

Frequency once every 2010 years

1

Low

Probability of less than 20%③ About "Risk"
The committee summarizes how each related company division understands and recognizes the current status of each identified risk and what is
anticipated in each company division when such risk materializes.
Through these measures, we have embodied vague risks and made the image of risk response clearer.

- 27 -

④ About "Opportunities"
When this risk is regarded as an "opportunity," the specific image of what scenarios are assumed will be used as the reference material for examining
when taking risks.

(3)Response to risks
We will formulate appropriate countermeasures and countermeasures for the identified risks. Countermeasures include mitigating, avoiding, passing on,
and accepting risks. To ensure that the risk remains within the acceptable range, describe it specifically at the action level.

(4)Monitor and Report Risks
Within the risk items extracted, for the 16 risk items listed in the risk map, the status of each risk will be monitored at Risk Management Committee, whichmeets once every 4 and a half years, and the strategies/processes will be modified as needed. For the 6 items identified as the highest-priority risks, we trackchanges in risks and make Report and make adjustments and adjustments as needed by checking the effectiveness of current conditions, risk scenarios,
opportunities, and risk responses in more detail.
[Structure Chart and Operation Flow]

MIRARTH Holdings Board of Directors
Supervise

ReportSupervise

Supervise
and advisory

ReportChair CEOVice-chairman and Secretary-General CRO
ReportCollaboration

Supervise
Direction

ReportDirection
ReportCollaboration(Board of) Auditors

Risk Management Committee

Appointment
andSupervise

Chief Risk Officer (CRO)Group Legal Department
Collaboration
and advisory<First Line>At each group company
Business Divisions

MIRARTH groups
Risk management supervisor<Second Line>
Individual Administration Divisions<Third Line>
Audit

MIRARTH groups
Risk management supervisor

Internal Audit
Administration Department

Administration Department

Administration Department

Business Divisions

Business Divisions

Business Divisions

OfficeReport- 28 -

4.About the specific risks of our group(1)Risk map(2)List of important risks
ItemnumberImportant risk

Details of Risks

Opportunity

Response

Related Materiality

・Policy changes in economic
policies (changes in laws
and regulations,interpretations of laws andregulations, and operational
Policy)・Changes in lifestyles

1・Strengthen information
・Create demand and capture

gathering activities

growth opportunities

・Reflection of the needs of(DINKs, increase in dual-

through new products andActivity in real estate

income households,

services

markets

relocation of elderly people

・Relaxation of requirements

to condominiums, andfor tax reduction policy

progress in telework)

・Increase in opportunities to・Diversification of housing

buyers・Offering a variety of products

acquire land and properties

needs

・Strengthen initiatives fordiverse financing methods

Achieving Sustainable
Growth in Local
Communities

・Ongoing performancemonitoring andimplementation of measures

・Changes in politicalconditions and economic
trends・Demographic changes
・Change in profitability of・Promote visualization ofbusiness
・Timing of decision tocontinue or withdraw from2

Managing its portfolio

business
・Emergence of imbalances
between purchases andprofit/loss and profitability
・Optimize and stabilize Profit
structure・Acquisition of external
credibility by improving
budget accuracy

by business division and PJ
by utilizing internal systems,
etc.
・Holding portfolio meetingsand other events to curb

investment and payback

excessive purchases andperiods

investments- 29 -

Consolidation of Corporate
Governance・Offering competitive
treatment and benefits
・Enhancement of educational
programs and training
・Fostering a culture that
・Retention and outflow of3

Securing humanresources

personnel
・To maintain operational
quality and competitiveness・Improving operational

accepts diverse human

productivity, quality, andresources and providing acompetitivenesscomprehensive work

・To create new ideas andinnovations

environment
・Appropriate Evaluation andResponding to Declining
Birthrate and Aging
Population and Declining
Workforce

Operation of the Personnel
System・1on1
・Promoting the introduction ofDX
・Interest rate trend
・Financial Position
4

Changes in theinterest rate market

・Changes in customer
purchasing sentiment due totrends in mortgage interest

・Fund management (Equity
securities, receivables, andinvestment)

・Considering the use of fixedinterest rates
・Appropriate control of LTV(no more than LTV65%)

Achieving Sustainable
Growth in Local
Communities

rates
・Increase in the risk of natural
disasters, etc.

・Development of renewable

・Increase in costs associatedenergy power plants

with the provision ofenvironmentally conscious
products
・Impact of low evaluation by
investors on stock prices due
5

Climate Change

to delayed efforts to combat
climate change
・Stricter regulations on the use
and emission of greenhousegases and strengthen

・Reduction of Carbon Dioxide
・Revitalization of therenewable energy market
due to heightened interest inenvironmental issues
・Growing demand forenvironmentally conscious
products, disaster-resistantproducts, and Buildings

conservation

Emissions
・Scenario analysis
・Establishment of an internal

Responding to climate

system in line with thechange and decarbonization,

standards of externaland promoting the stableevaluation organizations

supply and use of renewable

・Acquisition of GreenenergyCertification
・Promotion of earthquakeresistant Buildings and・Stricter building standards

Facilities

due to stricter laws and・Establishment of BCP systemregulations
・Appropriate management
・Occurrence of fraud,6

To maintain andmisreporting, information

strengthen internal

leakage, etc.

control functions

・Impact on loss generation
and reliability

・Improve overall
organizational performanceby improving businessprocesses

through early detection ofrisks
・Implementation of RiskAssessment and Audit
・Providing training andeducation- 30 -

Tightening risk management

・Selection of projects to beaddressed
・Conclusion of long-term
contracts and the7

Fluctuations in raw

・Impact of Changes in Profit

material costs

Rate on Business Results

・Savings opportunities

introduction of price-fixed・To develop new sources ofcontracts

supply・Use of commodity futures

Achieving Sustainable
Growth in Local
Communities

and options trading
・Regular implementation ofbudget review and reevaluation of projects
・Changes in business
oppotunities due to changes
in policies and FIT systems
・Reactivation of nuclear
power plants
・Maintenance andmanagement of
infrastructure facilities such
Changes in the8

Renewable Energy
Marketas power grids
・Change in the
decarbonization trend
・Impact on ecosystems in
power plant development
・Development and emergence・Diversification of power
・Increase in electricity sales
prices due to expansion ofsources・Conclusion of long-term

renewable energy needs

power sales contracts

・Brand-ing as a company that

・Alliances with energy

contributes to theenvironment
・Introduction of a new system
to replace FIT

companies

Promoting the stable supply
and use of renewable energy

・Initiatives for new businesses
such as PPA・Implementation of areastrategy in Energy Businessof new technologies
・Request of electric powercompanies to curb output(excessive supply of
renewable energy)

・Implementation ofmonitoring
・Development of Consultation
・Impact on productivity andmotivation
9

Labor environment

・Personnel changes
・Occurrence of harassment
・Mental and physical effects
of working hours

and Reporting Desks・Improving employee
satisfaction and morale
・Improve employee
productivity
・Compete for talent・Penalties for violation
・Development of rules andpolicies
・Introduction of a flexible

Ensuring Employee
Health/Safety and Promoting
Equity & Inclusion (DE&I)

labor system
・Regular health checks andstress management programs
・Improving our benefit
programs
・Organizational
Transformation to Promote

・Impact on corporate
competitiveness10

Response to DX
Promotion

・Impact on reputation of
information management,
etc.
・Impact on business

DX and IT
・Cost reduction

・To provide employees with

Responding to Declining

・Improving productivity

opportunities to improve

Birthrate and Aging

・Increased customer

their skills and continue

Population and Declining

learning

Workforcesatisfaction

・Implementation ofoperations

appropriate security
measures- 31 -

・Implementation of training
・Implementation of evaluation
・Reputational and reputational

11

Fraud of Corporate
personnel

impact・Impact on a company's image
and brand value
・Legal and financial problems

through appropriate
responses
・Prevention and early
detection of improper
conduct
・Enhancement of resilienceagainst corruption

・Dissemination of informationon legal revisions
・Formulation and operation of
response manuals in theevent of occurrence・Strengthening internal

Implanting business ethics
and compliance

controls
・Shared risk of fraud
・Introduction of clawback
clause・Formulation andimplementation of
information security policy

12

Information
management system

・Confidential Information

・Gaining Customer TrustManagement System

・Improving Corporate

・Impact on corporate
reliability
・Fines and legal liabilities for

Reliability
・Increased customer
satisfaction

violations of laws and・To accelerate operations

regulations

・Improving Quality

and privacy policy
・Implementation of regular
information-security Audit
and risk-assessment
・Restricting access to systems

Tightening risk managementand databases
・To promote the introductionof firewalls and security
software・To conduct regular training
and education for employees
・Introduction of a strict

13

To maintain quality
management

・Impact on customer
satisfaction
・Occurrence of legal liability

・Increased customer
satisfaction
・Increasing the brand value

quality control system
・Regular Quality Audit andImprovement Activities
・Strengthening education andRealizing sustainable growth
in local communities,
respecting human rights, andaddressing supply chainstraining
・Formulation and operation ofCredit management of
14

business partners(Anti-corporate

・Incurrence of corporate
reputation and legal liability

transactions)

・Providing peace of mind to
customers
・Avoidance of legal risks

KYC policies
・Training and education
・Implementation of suspicious

Tightening risk managementtransactions and monitoringof customer behavior
・Implementation of training
・Promotion of acquisition of・Penalties and legal liabilities

15

Response to Supervise
authorities

for breaches of legal
obligations and regulations
・Impact on corporate
reliability and reputation

qualifications as manager of・Improving Corporate
Reliability
・Improving the operation
processbuilding examination, etc.
・Clarify the process/person
responsible for complying
with Report and reporting
requirements
・Monitoring of Report andnotification deadlines- 32 -

Tightening risk management

・Understand new markets and
Be related laws andregulations
16

Launch new business・Fund procurement
・Profitability of new
businesses

・To provide growth
opportunities
・To strengthen thecompetitiveness・Community Relations- 33 -

・Grasping market needs andcompetitive conditions
・Building partnerships withlocal communities
・Clarification of exit criteria

Promoting the stable supply
and use of renewable energy
and realizing sustainablegrowth in local communities

(3)Explanation of the most important risks① Activity in real estate markets
Major category

Business strategy risk

Medium classification

Business Environment Risk

Small classification

Activity in real estate markets

Departments in charge(Headquarters/Divisions)Group Corporate Planning Department

Frequency/likelihood

High

Risk impact

Large

Real estate-related businesses account for a large portion of the Group's revenues. Accordingly, accurately grasping trends in the realestate market is the most important issue that will determine our future, and we are paying close attention to changes in housing
Risk scenario

demand in particular. Housing demand is susceptible to changes in the lifestyles of customers, including economic trends, and isaffected by various national policies related to the acquisition of housing, as well as changes in the enactment, revisions, andinterpretations of laws, regulations, and rules governing For Other properties. Furthermore, the impact of national and regional
demographic trends cannot be overlooked.

Opportunity

We anticipate an increase in opportunities to acquire land and properties as a trigger for the creation of new products and services.
We expect to seek and expand businesses other than Real Estate Business, which are unaffected by real estate market trends.
With regard to trends in the real estate market, the Corporate Planning Division regularly exchanges information once a month withoutside experts, and shares this trend internally. With regard to market trends and needs, we are leveraging the advantages of ourintegrated manufacturing and sales to build a system that can reflect customer preferences and purchasing trends in product planning,

Countermeasures

thereby offering a diverse range of products.
In view of economic trends, the Group is also considering and strengthening various financing methods, and through these efforts has
established a framework that can respond flexibly to market fluctuations.
We are also building a business portfolio that does not rely solely on Real Estate Business. We are focusing on securing stable earnings
by expanding our stock-based Energy Business and fee-based Asset Management Business.

② In-house portfolio management
Major category

Business strategy risk

Medium classification

Business Details

Small classification

Its portfolio management

Departments in charge(Headquarters/Divisions)Group treasury
Group Corporate Planning Department

Frequency/likelihood

High

Risk impact

MediumWe are working on Energy Business and Asset Management Business with a focus on Real Estate Business. Consideration of theCurrent status andRisk scenario

profitability of individual businesses is a very important topic in these 3 Segment, and maintaining a well-balanced portfolio of thesebusinesses is essential to the ongoing development of our group. Accordingly, each of these Segment businesses is required to quickly
make decisions on the profitability of individual businesses and on whether to continue or withdraw from their businesses. Controllingthe financial indicators that our group has set forth as Target is an indispensable element from the perspective of risk-management.
We can pursue higher returns by implementing effective Assets allocation and investing strategies. In addition, by investing in a

Opportunity

variety of Segment, you can diversify your exposure while expanding your earning oppotunities.
By building an optimal business portfolio, we will have the opportunity to increase returns through concentrated investment in
profitable businesses.
A portfolio meeting is held once a month to restrain excessive investment in the company and acquisition of business real estates andCountermeasuresother assets. In addition, we are utilizing an internal system to build a system that enables each division to accurately determine theprofitability of its business.

- 34 -

③ Changes in the interest rate market
Major category

Business strategy risk

Medium classification

Business Environment Risk

Small classification

Changes in the interest rate market

Departments in charge(Headquarters/Divisions)Group treasury

Frequency/likelihood

High

Risk impact

Large

We procure short-term and long-term interest-bearing Liabilities from Financial institutions and other sources for the operation anddevelopment of our business. If we need to raise new funds, our funding costs may increase during periods of rising market interest
Current status andRisk scenario

rates. In addition, a rise in market interest rates could lead to a decline in the willingness of homebuyers to purchase and an increase in
the expected yields on real estates demanded by investors, which could lead to a decline in the earnings from the sale ofcondominiums by our group and a decline in the value of owned Assets, and our business, financial condition and results of operations
could be adversely affected.
In a period of rising interest rates, Assets of Individuals is expected to increase over the long term, as deposit interest rates also rise,

Opportunity

although there is a company burden in the short term.
We anticipate that increased Individuals funding will lead to increased spending, which in turn will stimulate corporate activities anddrive increased capital spending.
In procuring funds through borrowings, we will lengthen and fix interest rates on our borrowings. At the same time, we will build
stable relations with a variety of Financial institutions in order to respond to the risk of short-term rises in interest rates. In addition, weCountermeasures

will continue to closely monitor trends in mortgage interest rates and changes in cap rates in the real estate trading market due to futureinterest rate trends, and will continue to strive to mitigate the risk of rising interest rates through appropriate control of our balance
sheet.

④ Climate Change
Major category

Business strategy risk

Medium classification

Business Environment Risk

Small classification

Climate Change

Departments in charge(Headquarters/Divisions)

Corporate
Communication OfficeFrequency/likelihood

High

Risk impact

MediumRegulatory restrictions on the use and emission of greenhouse gases, energy conservation regulations, and natural disasters andaccidents caused by climate change could affect our business locations, supply chains and customers. In particular, the strengtheningof laws and regulations as a national policy may lead to stricter energy-saving standards for condominiums and other buildings and theCurrent status andRisk scenario

need to adopt and provide environmentally conscious products. This could have an impact on our earnings. In addition, the status of
our Group's efforts to address climate change may affect investors' decisions to invest in us.
It is important to appropriately evaluate these risks and take countermeasures. It is necessary to promote risk reduction initiatives, suchas building measures to adapt to climate change, development products with less environmental impact through energy conservation,and developing businesses that contribute to decarbonization.
We have positioned Energy Business as a growing business, and we see growing demand for renewable energy as a crucial oppotunity.
By expanding the scale of power generation and the provision of related services, we are able to differentiate ourselves from

Opportunity

competitors and increase our competitiveness. In addition, the introduction of low-emission facilities and renewable power, as well as
increased interest in disaster prevention, will create demand for housing replacement and repairs, and by stimulating such demand, it
will be an opportunity to promote the growth of our business.
In addition to promoting the development of renewable energy power plants, we will strictly implement initiatives to minimize theburden on the environment by promoting the development of properties with high environmental performance and the reuse of energyCountermeasuresin properties. In addition, Sustainability committee, which meets quarterly, deliberates on the basis of the Climate Change Policy and
the Greenhouse Gas Reduction Plan. In this way, we will work to reduce greenhouse gases in the promotion of our business activities
throughout the entire organization. For example, we will promote the establishment of necessary internal systems.

- 35 -

⑤ To maintain and strengthen internal control functions
Major category

Business strategy risk

Medium classification

Organizational and governance risk

Small classification

To maintain and strengthen internal control
functions

Departments in charge(Headquarters/Divisions)Group Corporate Planning Department
Internal Audit OfficeFrequency/likelihood

MediumRisk impact

Large

Current status andRisk scenario

The importance of internal controls is not pending, and we believe that the expansion of internal controls is an effective means ofenhancing the governance of each Group company, and will lead to the deterrence of fraudulent activities and compliance violations,as well as the prompt response in the event that they occur. We intend to continue to expand and enhance these measures in the future.
By early detection of risks and appropriate management of risks, we are able to raise the level of trust of the company and provide

Opportunity

perpetual business. In addition, improvements in business processes and other measures will improve the performance of the entire
organization.
In addition to strengthen the number of employees involved in internal controls, we are strengthening our functions by providing

Countermeasures

training and education on internal controls. In addition, by monitoring risk items in conjunction with Audit, the Group will further
strengthen its internal control functions.

⑥ Labor environment
Major category

Operational risk

Medium classification

Personnel and Labor

Small classification

Labor environment

Departments in charge(Headquarters/Divisions)Group HR

Frequency/likelihood

MediumRisk impact

High

We recognize that the labor environment is a key factor in the company in many areas, including worker health and safety, corporate
productivity and Sustainability, compliance with laws and regulations, and social assessment.
In particular, we believe that the establishment of a work environment that enables employees to work soundly, including not only
managing appropriate working hours but also responding to remote work and health management for employees, will have a
Current status andRisk scenario

significant impact on securing and retaining excellent human resources.
At present, under Policy of Well-being, we are expanding the application of telecommuting to create an environment. We are also
investing in various measures based on a survey of employee well-being, and conducting training to prevent harassment.
We believe that inadequacies or delays in the development of a sound labor environment for employees not only have an impact on
productivity due to the recruitment of talented personnel and a decline in motivation, but also lead to a decline in our social reputation,and involve the risk of becoming a competitive disadvantage in the continuation of our business.
In response to this risk, we believe that establishing a labor environment in accordance with the social environment ahead of others

Opportunityand creating an environment in compliance with laws and regulations will lead to the securing of excellent human resources and theimprovement of productivity, thereby giving us an advantage in business continuity.
In terms of the working environment, the Group Human Resources Department conducts monthly management of the working hoursof each Group company, and strives to establish a system for checking and mitigate the risks.

Countermeasures

With regard to employee engagement, we are working to improve the quality of our personnel system evaluations, create an open
working environment through 1on1, and establish and promote KPI for measures to improve employee engagement based on anunderstanding of the status of employees through welfare surveys. Director assessment also incorporates items to improve employee
engagement, and we are implementing initiatives at the management level.

- 36 -

5.Crisis management system (crisis management)
We have established a crisis management system to enable us to respond quickly and accurately in the event of an unforeseen event. Crisis management isdivided into the following 4 levels according to the degree of impact of damage on the business, and a Crisis Management Team is established to respond to thesituation.

(1)Committee Structure
In the event of a crisis, the chief of the countermeasure organization will order the establishment of a countermeasure organization immediately according
to the level of crisis management and ending the situation at an early stage.
Management level A
Installation Category

organization

Countermeasure

Head of countermeasureorganization (*1)
Secretariat
Supervising department

Control level B

Control level CManagement level D

Establishment of countermeasure organization

Each department

President

Officer in charge of general affairs and the Officer in charge of

Secretary: Officer in charge of general affairs (*2)

corporate planning

General affairs department-

Department directly responsible for the crisis or the department designated as the countermeasures organization

Contact point

General affairs department

Setting the management level(In the event of absence, it shall be CRO of the Group. In the event of absence, the director in charge of general affairs will act on behalf of theApproval at the control level shall be made by the president.

Company.)※1 In the event that the head of the countermeasure organization is absent due to business trips, etc., the Group CRO shall act for Control Level A and B, and in the event that the head of thecountermeasure organization is absent, the director in charge of general affairs shall act for this.
In Control Levels C and D, the person in the highest rank corresponding to the position based on the crisis that occurred shall act on behalf of the manager.
※2 In the event that the Director General is absent, such as acting as the head of the countermeasures organization, the head of the department in charge of general affairs shall act for Control
Level A and B.

(2)Committee structure (members)
Risk Management Level A and Level B shall consist of the president of the Countermeasures Organization and the general manager of the general affairs
division. Risk Management Level C and Level D shall constitute the committees of each department responsible for emergencies based on the Division of
Duties Table.

(3)Operational standards
The president, who is the head of the countermeasure organization, sets the management level for the subject crisis. Management Levels A and B establish
a secretariat with the head of the countermeasure organization as the president, and Management Levels C and D designate the responsible department as thehead of each business division (or headquarters) to respond to crises.

<Business Continuity Planning (BCP)>
In the event of a large-scale natural disaster such as an earthquake, an infectious disease, or an artificial disaster (war, terrorist attack, accident, etc.), we aremaking efforts to formulate a business continuity plan (BCP) in order to maintain our business as much as possible and to restore operations as quickly as
possible.

(1)Basic Policy
Our basic Policy is to fulfill our social responsibilities to our stakeholders by ensuring the safety of our employees, maintaining the business activities ofthe entire organization as much as possible, and endeavoring to recover as quickly as possible.

- 37 -

(2)Operational System (Cycle)
We identify material matters that may affect the Group as a whole as an immediate Report and make decisions as needed. The items applicable to
Immediate Report are as follows:
Code

Item

1

Serious matters concerning human life

2

3

4
5

Significant Matters Relating to thePreservation of Assets

ExamplesDeath occurring among employees and businesses
Significant damage including fires and collapses occurred at Assets and construction sites.

Significant matters related to business

Situations that make it difficult to continue critical business (e.g., system failures, exhaustion ofcontinuity

funds, Head Office on-site ban, etc.)

Matters concerning credit as a

Items including the risk of legal disputes such as Individuals information leaks, matters that may leadcompany

to reputational risks such as customer problems, and matters related to external public relations

Matters that may cause serious damage to Other

Items that do not qualify as immediate Report are classified as regular Report as the first report 3 hours after the occurrence of the accident, and aremonitored every 3 hours until 17:00 and 1 week after the day of the accident.
In conjunction with the formulation of the Business Continuity Plan (BCP), we will establish a system for business continuity management (BCM), refine
the effectiveness of BCP based on PDCA cycle, and conduct regular educational, training, and review.

(3)Scope of BCP
The scope of our response is the phase in which the capacity utilization of our organization as a whole declines markedly and it takes time to recover.

(4)Activation criteria
We assume that the chief of the relevant organization will exercise BCP in the event of an earthquake with a seismic intensity of less than 6 or in the eventof an emergency such as the inability to maintain business continuity of the entire organization due to unforeseen circumstances.

- 38 -

4[Management's Discussion and Analysis of Financial Condition, Results of Operations and Cash Flows](1) Summary of Business Results and Others① Business results
In Current Consolidated Fiscal Year, social activities normalized as a result of the shift to 5 new types of coronavirus infectious diseases, and a gradualeconomic recovery was seen as Individuals consumption recovered and the employment/income situation improved. On the other hand, the outlook remains
uncertain due to geopolitical risks, the impact of a rise in long-term interest rates in line with monetary policy in Europe and the United States, price increases inline with the yen's depreciation, and soaring energy resource prices resulting from tensions in the Middle East. These factors warrant continued close attention.
In the business environment in the real estate industry to which our group belongs, in new condominiums for sale, although selling prices are rising due tothe impact of high raw material costs and other factors, the willingness to purchase is still strong among the actual demand segment. As the number of singleperson households and dual-income households continues to increase and values change, the lifestyles of end users are diversifying, and demand for compact
condominiums is on the rise in addition to needs for location and convenience of living. Meanwhile, in regional core cities, due in part to the trend toward
compact cities, demand remained high, particularly among active seniors, and sales of condominiums were firm.
According to a survey by the Real Estate Economic Institute, Units for supplying condominiums nationwide in 2023 was 65,075 units, down 10.8% from theprevious year. The annual supply of Units was below 70000 units for the first time in 3 years, but the average condominium price in 2023 was 59,110 thousand
yen, an increase for the seventh consecutive year, and the highest level since the survey was launched in 1973.
Considering the trend in the cost of new condominiums, we believe that the market for new condominiums will continue to be in a relatively favorable
supply-demand balance. Against this backdrop, our Group ranked fifth nationwide in the 2023 Supply Units by Seller Group, and is responsible for providing astable supply in the real estate subdivision market.

In October 2023, we formulated a long-term vision for the fiscal year ending March 2030 to realize our Group-wide Purpose "To design sustainable
environments for a happier future for both people and our planet.".

"Be the Takara of the community."

What future does a real estate developer have.
Does power trained at the site become the value of the local community.
MIRARTH will reform themselves and provide answers for 2030.

We evolve our model by connecting flow type to a stock-circulating type.
We extend our domain by connecting real estate to cities, regions and the environment.
We redefine value by connecting real estate revenues to social value.

MIRARTH become a Takara-like presence for the local community by thoroughly learning"the unique characteristics" that are rooted in each region, connecting the development of"points" with "lines," and promoting the revitalization of "faces."

Encourage the region, Japan and the world..

※Takara = treasure

In the formulation of this plan, the main target of the message is made up of employees. By doing so, we hope that the employees of our group will continue
to ask their questions and become a company that contributes to regional revitalization.
In addition, we have set up specific "indicators" to be implemented by 2030. By connecting the ideas of our long-term vision to Segment of our groupcompanies, we are playing a role in aligning and encouraging the direction of business growth and change.
In the future, based on this long-term vision, we will aim to create synergies that transcend the boundaries between the Group, such as "Real EstateBusiness," "Energy Business," and "Asset Management Business," by reflecting Target of each company and the daily operations of each employee, as well as
the ideal image that each Group company should take until 2030, and to make the future of humans and the planet happy as a "future environmental design
company" that transcends the boundaries of a comprehensive real estate developer.

Current Consolidated Fiscal Year's results of operations are as follows: Net sales 185,194 Millions of yen (up 20.7% year on year), Operating income 15,457
Millions of yen (up 119.9% year on year), Ordinary income 12,984 Millions of yen (up 158.0% year on year) and Net income attributable to owners of parent
8178 Millions of yen (up 78.4% year on year).

- 39 -

(Net sales)
In Real Estate Business segment, 162,804 Millions of yen consisted of 2214 newly built condominiums (including JV' interests), sales of income-generating
properties, sales of newly built detached houses, sales of pre-owned condominiums, rental income from apartments, condominiums, offices, etc., andmanagement income from 76,661 managed units.
Energy Business sales totaled 13,849 Millions of yen due to the sales of power generation Facilities and other factors.
Asset Management Business account is 734 Millions of yen due to management fees and other factors.
Other Businesses accounts for 7805 Millions of yen due to construction subcontracting, large-scale repair work orders, and various fee income.
Consequently, Current Consolidated Fiscal Year's Net sales was 185,194 Millions of yen, up 20.7% year on year.
(Cost of sales)
This was 144,603 Millions of yen, up 18.8% from the same period of the previous fiscal year, mainly due to an increase in the delivery of newly built
condominiums.

(Selling, general and administrative expenses)
Selling, general and administrative expenses increased 1.8% year on year to 25,133 Millions of yen due to aggressive investments in human capital and thebuilding of a DX base.
(Non-operating income and expenses)
Non-operating income was 1193 Millions of yen, up 18.4% year on year, mainly due to an increase in equity in Profit of affiliates accounted for by the equity
method.
Non-operating expenses was 3666 Millions of yen, an increase of 22.0% year on year, mainly due to an increase in Interest expenses.

(Extraordinary income/losses)
Extraordinary income increased 10 Millions of yen year on year to 709 Millions of yen due to a gain on sale of Stocks of subsidiaries and affiliates and otherfactors.
Extraordinary loss was 554 Millions of yen, up 347 Millions of yen year on year, mainly due to the recording of Impairment loss.

Operating results by segment are as follows.

(Real Estate Business)
Due to factors such as new condominiums, securitization, new detached house sales, renewal and resale, real estate leasing, real estate management, and realestate Other, this business Net sales was 162,804 Millions of yen (up 17.0% year on year).

(Energy Business)
Revenues from the sale of Facilities and sales of Other power generation Facilities resulted in a Net sales of 13,849 Millions of yen (up 53.1% year on year).

(Asset Management Business)
Despite steady performance in management fees, the business Net sales was 734 Millions of yen (-33.0% year on year) due to a decline in acquisition feesfor power generation Facilities following the conversion of Takara Leben Infrastructure Fund Inc. to Consolidated subsidiaries in End of Previous Consolidated
Accounting Period.

(Other Businesses)
Net sales for this segment was 7805 Millions of yen (up 85.0% year on year) due to construction subcontracting, orders for large-scale repair work, andrevenues from various fees and commissions.

- 40 -

② Financial Condition
Assets, Liabilities and Net Assets of our Current Consolidated Fiscal Year has decreased Total assets by 4, 221 Millions of yen compared to 337,447 Millionsof yen and End of End of Previous Consolidated Accounting Period due to the delivery of newly built condominiums and the sale of income-generating
properties.

(Current Assets)
Due to the transfer of business Assets to inventory Assets, etc., Current assets increased by 3208 Millions of yen from 191,937 Millions of yen to End of End
of Previous Consolidated Accounting Period.

(Fixed Assets)
Despite the steady purchase of business Assets, Fixed assets decreased by 7442 Millions of yen from 145,441 Millions of yen to End of End of Previous
Consolidated Accounting Period due to the transfer to inventory Assets and other factors.
(Current Liabilities)
Due to the repayment of Short-term borrowings and other factors, Current liabilities decreased by 122,537 Millions of yen and 39,620 Millions of yen compared
to End of End of Previous Consolidated Accounting Period.

(Fixed Liabilities)
Due to the increase in Long-term loans payable associated with new purchases and other factors, Fixed liabilities increased by 143,240 Millions of yen and
28,871 Millions of yen compared to End of End of Previous Consolidated Accounting Period.

(Net Assets)
Total of Net assets has increased by 6526 Millions of yen compared to 71,669 Millions of yen and End of End of Previous Consolidated Accounting Period,
respectively, due to the amount of Net income attributable to owners of parent booked exceeding Dividend of surplus, etc.

③ Cash Flow
Cash and cash equivalents ("Funds") in End of the consolidated financial year decreased by 5263 Millions of yen to 41,884 Millions of yen compared to End
of End of Previous Consolidated Accounting Period.

(Cash flows from operating activities)
The increase in net cash provided by operating activities was 36,777 Millions of yen (a decrease of 722 Millions of yen for End of Previous Consolidated
Accounting Period). This was mainly due to a decline in inventory Assets.

(Cash flows from investing activities)
The net cash used in investing activities was 26,329 Millions of yen (End of Previous Consolidated Accounting Period decreased by 46,354 Millions of yen).
This was mainly due to Purchase of Property, plant and equipment.

(Cash flows from financing avtivities)
The net cash used in financing activities was 15,464 Millions of yen (an increase of 61,531 Millions of yen for End of Previous Consolidated Accounting
Period). This was mainly due to the repayment of borrowings.

- 41 -

④ Actual in manufacturing, orders received and salesa)Net sales's Actual
Current Consolidated Fiscal Year
(April 1, 2023
To: March 31 in 2024)

Segment nameYear on year (%)

Real Estate Business (Millions of yen)

162,804

117.0

Energy Business (Millions of yen)

13,849153.1

Asset Management Business (Millions of yen)

734

67.0

Reportable segments Total (Millions of yen)

177,388

118.9

7,805

185.0

185,194

120.7

Other (Millions of yen)
Total (Millions of yen)
(NOTE)Transactions between Segment are offset and eliminated.

b)Units under contract during the period

Segment name

End of Previous Consolidated Accounting Period(From April 1, 2022
To 31 March, 2023)
Amount (Millions of
yen)

Units

Current Consolidated Fiscal Year
(April 1, 2023
To: March 31 in 2024)

Year on year (%)

Amount (Millions of
yen)

Units

Real Estate Business

2,666

144,9422,513

134,283

92.6

Total

2,666

144,9422,513

134,283

92.6c)Contract Balance

Segment name

End of End of Previous Consolidated Accounting
Period(As of March 31, 2023)
Amount (Millions of
yen)

Units

End of the consolidated financial year
(As of March 31 2024)

Year on year (%)

Amount (Millions of
yen)

Units

Real Estate Business

1,756

83,122

1,554

71,979

86.6

Total

1,756

83,122

1,554

71,97986.6- 42 -

(2) Details of analyzing and examining the status of operating results, etc. from the management's perspective
The following is a summary of Details of management's assessment and analysis of the Group's operating results.
The forward-looking statements contained in this report are based on judgments made as of the end of the fiscal year under review.
① Recognition, Analysis, and Review of Current Consolidated Fiscal Year's Operating Results, Details
The operating results of Current Consolidated Fiscal Year and other areas of our core business are as follows. In the newly built condominiums in Real EstateBusiness, there was a strong appetite for purchasing properties near train stations in central Tokyo and properties compatible with remote work. Sales proceededfavorably, and 2214 units (including JV' equity) were delivered. In Energy Business, a tender offer for Takara Leben Infrastructure Fund Inc.'s Investment units
was completed for November, 2022, and Policy was transformed from a flow-based business model in which the Company developed and sold power generation
Facilities to a recurring revenue-based business model in which the Company holds power generation Facilities and generates ongoing electricity sales revenue.
In the fiscal year ended March 2030, we intend to grow Real Estate Business and Energy Business in EBITDA at a ratio of 1:1.
Factors that may have a significant impact on the Group's operating results include the market environment in the external environment. In the internal
environment, we are paying particular attention to the dependence on borrowings. Real Estate Business, our core business, is based on borrowings. To ensurestable business growth while securing appropriate equity capital, we have set a numerical Target as 1 of our key management indicators regarding the dependency
on borrowings. In light of the fact that borrowings increased as a result of Takara Leben Infrastructure Fund Inc.'s tender offer for Investment units, Target
announced an amendment to LTV Target on May 15, 2023, which is in principle less than 65%. LTV in End of the consolidated financial year was 62.4%.
With regard to our Group's capital resources and fund liquidity, our Group's core business, Real Estate Business, has borrowed a portion of the funds foracquiring land and constructing it from Financial institutions and other sources. In addition, the Company has entered into commitment line agreements withmajor banks and other parties, which allow for prompt funding. While borrowings have been increasing in recent years due to the expansion of our businessdomains and the growth of our investment business, we believe that we will be able to secure stable funding by establishing an investment recovery cycle,
improving our Equity ratio, and building an appropriate portfolio.

② Critical accounting estimates and the assumptions used in those estimates
Accounting estimates used in the preparation of the consolidated financial statements and the assumptions used in these estimates that are significant aredescribed in "V Accounting 1. Consolidated Financial Statements, etc. (1) Notes Matters (Critical Accounting Estimates)."(3)Factors with a significant impact on management performance
Our mainstay Real Estate Business tends to be influenced by buyer sentiment and supplier trends. Purchaser confidence is affected by factors such as economic
trends, interest rate trends, housing tax, consumption tax, and land price trends. In addition, supplier supply trends are susceptible to changes in the outsourcing
prices of Land suppliers, general contractors and other subcontractors, the failure of subcontractors, and financial trends. Therefore, any changes in these trends
could have a material impact on operating results.

5[Significant Management Contracts]
Not applicable.

6[R&D activities]
Not applicable.

- 43 -

III. [Status of Facilities]
1[Overview of Capital Expenditures]
Capital expenditures and other expenditures made under Current Consolidated Fiscal Year totaled 26,641 Millions of yen, and were mainly for acquisitions of Assets
for business use 26, 221 Millions of yen, and Other 420 Millions of yen.

2[Status of major facilities]
The major facilities of our group are as follows.
(1) Submitting Company
As of March 31 2024
Book value (Millions of yen)
Site name(Location)

Segment nameHead Office(Chiyoda-ku, Tokyo)

Real EstateBusiness

Rental condominiums, etc.
(Chuo-ku, Tokyo, etc.)

Real EstateBusiness

Mega solar facility(Hachimantai City, Iwate
Prefecture, etc.)

EnergyDetails of facilities

Number of
employees(People)Buildings andstructures

Machinery andequipment

214

0

(-)

-

424

639

38
(1)

6,932

12

11,285(16,735.84)

-

1,268

19,498

-

25

3,328

529
(268,213.30)

-

17

3,900

-

General businessfacility
Condominiums forrent, rental stores,
and offices
Mega solar facility

Business

Land(Area Ⓡ)

Leased assets

Other

Total

(NOTE)1. Of the book value, "Other" is mainly Construction in progress, etc.
2.Figures in parentheses in Number of employees column indicate the annual average number of temporary employees (equivalent to 8 hours a day per employee).

(2) Domestic subsidiaries
As of March 31 2024

Site name(Location)

Company Name

Segment nameBook value (Millions of yen)

Details offacilities

Generalbusinessfacility

LeasedassetsNumber of
employees(People)Buildings andstructures

Machinery andequipment

243

-

(-)

-

-

243

513
(7)

113

3

(-)

-

147

263

465
(86)

Land
(Area Ⓡ)

Other

Total

Head Office(Chiyoda-ku, Tokyo)

Real EstateBusiness

Ltd.

Head Office(Chiyoda-ku, Tokyo)

Real EstateBusiness

Leben Home Build Co.,Ltd.

Head Office(Yokohama, Kanagawa)

Real EstateBusiness

Generalbusinessfacility

21

-

(-)

-

9

30

125
(2)

Head Office(Chuo-ku, Tokyo)

Real EstateBusiness

Generalbusinessfacility

27

-

(-)

-

8

36

54
(5)

Leben Zestock Co., Ltd.

Head Office(Chiyoda-ku, Tokyo)

Real EstateBusiness

Generalbusinessfacility

32

-

(-)

-

7

40

27

Leben Trust Co., Ltd.

Head Office(Yokohama, Kanagawa)

Real EstateBusiness

Generalbusinessfacility

23

0

(-)

-

4

28

74
(8)

Leben Clean Energy Co.,
Head OfficeLtd.
(Shinjuku-ku, Tokyo)(NOTE)3

GeneralEnergy Business businessfacility

23

-

(-)

-

19

42

51

Takara AssetManagement Co., Ltd.

5

-

-

0

6

Takara Leben Co., Ltd.
Leben Community Co.,

Takara Leben Realnet
Co., Ltd.

businessfacility

Asset

General(Chiyoda-ku, Tokyo)

Management
Businessbusinessfacility

Head Office(Minato-ku, Tokyo)

AssetManagement
Business

Generalbusinessfacility

11

-

(-)

0

1

13

12

Energy Business

Mega solar
facility

65

42,6987,846(2,261,086.45)

-

3,165

53,776-

Head Office(NOTE)4
MIRARTH Real Estate
Investment Advisor Co.,
Ltd.

General

(-)

18
(1)

(NOTE)5
Mega solar facility
Green Energy LLC, etc.
(Nasu-gun, Tochigi, etc.)(NOTE)1. Of the book value, "Other" mainly consists of Tools, furniture and fixtures, Construction in progress, and Software.
2.Figures in parentheses in Number of employees column indicate the annual average number of temporary employees (equivalent to 8 hours a day per employee).
3.Leben Clean Energy Co., Ltd. changed its name to MIRARTH Energy Solutions, Inc. on April 1, 2024.
4.Takara Asset Management Co., Ltd. changed its name to MIRARTH Asset Management Co., Ltd. on April 1, 2024.
5.Takara PAG Real Estate Advisory Ltd. changed its name to MIRARTH Real Estate Investment Adviser Co., Ltd. on March 29, 2024.

(3) Foreign subsidiaries
This information is omitted because it is not material.

- 44 -

3[Plans for new construction, retirement, etc.](1) Construction of major facilities
Not applicable.
(2) Disposal of major facilities
Not applicable.

- 45 -

IV. [Status of the Filing Company]
1[Status of Equity securities](1)[Total number of Equity securities]①[Total number of Equity securities]
Type

Number of authorized shares (shares)

Common stock

248,000,000
Total

248,000,000②[Issued shares]Type

As of the end of the fiscal year
Issuance (Shares)(2024 March 31)

Number of shares issued as of thefiling date (shares)(June 26, 2024)

Common stock

121,000,000

137,000,000

Total

121,000,000

137,000,000

Stock exchange on which thecompany is listed

Tokyo Stock Exchange
Prime market-

Details

The number of shares constituting 1
unit is 100 shares, which is thestandard for us with no limitation on
the content of rights.
-(NOTE)The issuance of new Equity securities through a public offering with a payment date of June 4, 2024 increased Number of issued shares by 16 million Shares.

- 46 -

(2)[Status of Subscription rights to shares]①[Details of Stock options system]
Subscription rights to shares issued in accordance with the Companies Act are as follows:
1. 1st Subscription rights to shares (Class B Subscription rights to shares)
Resolution Date

June 22, 2012
Directors 7

Category and number of grantees (persons)Executive Officers 1

Number of Subscription rights to shares (units)*

76

Class of shares, Details and numbers (Shares) that are the objectives of Subscription
rights to shares *Common stock 30.4 thousand (NOTE)1

Payment amount at exercise of Subscription rights to shares (Yen) *400(NOTE) 2

Strike term of Subscription rights to shares *From July 10, 2012 to July 9, 2052

For shares issued upon the exercise of Subscription rights to shares

Issue price 51,700

Issue price and amount designated as capital (Yen) *Amount included in capital 25,850 (NOTE) 3

Terms of Exercise of Subscription rights to shares *(NOTE)4
Acquisition of Subscription rights to shares by assignment shall be approved by

Matters concerning transfer of Subscription rights to shares *the Board of Directors.

Issues related to the issuance of Subscription rights to shares associated with

(NOTE)5

reorganization activities*※ Details at the end of Current fiscal year (2024 March 31) is shown. As of the end of the previous month (May 31, 2024), there was no change in Details that should bestated from Details as of the end of Current fiscal year, the description related to the end of the previous month of the filing date has been omitted.
(NOTE)1. Class of shares that is the object of Subscription rights to shares shall be our Common stock and the target Equity securities per Subscription rights to shares(hereinafter referred to as "Grant Equity securities") shall be 400 Shares.
In addition, in the event we conduct a Equity securities split or Equity securities reverse split of our Common stock after the allocation date of Subscription
rights to shares, Grant Equity securities count shall be adjusted according to the following formula, and fractions less than 1 Shares resulting from theadjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stock split
In addition, in the event we merge or split after the date of allotment of Subscription rights to shares, or in the event of Equity securities gratuitous allotment,
or in the event Grant Equity securities count needs to be adjusted according to Other, Grant Equity securities count shall be appropriately adjusted to the extent
reasonable. Provided, however, that adjustments in this paragraph shall be made only for Subscription rights to shares that are not Exercise of rights at that point
in time and that are the target Equity securities numbers.
2.The value of the assets to be contributed upon the exercise of Subscription rights to shares shall be The amount shall be 1 yen per share that can be delivered
upon exercise of the Stock Acquisition Rights and multiplied by the total number of Granted Shares..
3.① The amount of Capital stock to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be 1-half of the amount of
the limit of increase in Capital stock, etc. calculated in accordance with Article 17 I of the Company Accounting Rules, and any fraction less than 1 (1)yen resulting from the calculation shall be rounded up.
② The amount of Legal capital surplus to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be the amountobtained by subtracting the amount of Capital stock to be increased as set forth in ① above from the maximum amount of Capital stock to be increased as
set forth in ① above.
4.① A. Subscription rights to shares Person may exercise Subscription rights to shares allocated to the relevant Subsidiaries and associates after the day following
the date on which the relevant Subscription rights to shares Person lost any of the positions of Director and Executive Officers of our group (whichmeans us and our group. The same shall apply hereinafter).
2. 1. Notwithstanding the foregoing, Subscription rights to shares shall not exercise Subscription rights to shares allocated to Subscription rights to sharesin any of the following cases:(i)Causes other than the death of Subscription rights to shares (excluding the cases of resignation, etc. stipulated in ii below for Within 3 years from thedate of allotment) If, by Subscription rights to shares, Director or Executive Officers status of our group is lost and 10 days have passed since theday following the date of loss(ii)In the event Subscription rights to shares loses any of the status of Director and Executive Officers of the Group to Within 3 years from the date ofallotment of Subscription rights to shares due to resignation or retirement for personal reasons or dismissal or disciplinary action pursuant toOrdinary General Meeting of Shareholders resolution or Board of Directors resolution of our Group.

- 47 -

② In the event of the death of Subscription rights to shares, only 1 of the heirs to Subscription rights to shares (hereinafter referred to as the "heir") shall beentitled to exercise Subscription rights to shares in accordance with the terms set forth below. Provided, however, that a person who is deemed to havecommitted a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and no later than the last day ofthe exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
5.In the event of a merger (limited to the case where the merger is extinguished), an absorption-type demerger, an incorporation-type demerger (each of whichbecomes a split company), or a Equity securities transfer (each of which becomes a wholly-owned subsidiary) (hereinafter collectively referred to as"organizational restructuring"), the effective date of the merger (the date of incorporation of the Kabushiki-Kaisha which is incorporated by consolidation withrespect to the merger, the date of the absorption-type demerger, and the date of incorporation of the parent corporation which is incorporated by Equity
securities transfer With respect to the rights to subscribe for new shares (hereinafter referred to as the "remaining rights to subscribe for new shares") which
exist immediately before the rights to subscribe for new shares (hereinafter referred to as the "restructured company") as set forth in Article 236, Paragraph 1,
Item (8) (a) through (e) of the Companies Act, the rights to subscribe for new shares shall be delivered in accordance with the following conditions: In suchcases, the remaining Subscription rights to shares shall be extinguished and Subscription rights to shares of the Restructured Companies shall be newly
delivered.
Provided, however, that this provision shall be limited to the cases where a merger contract, absorption-type demerger contract, incorporation-type demerger
plan, Equity securities replacement contract or Equity securities transfer plan stipulates that Subscription rights to shares of the Restructured Company shall bedelivered in accordance with the following terms:① Number of Subscription rights to shares of Reorganized Companies to be Delivered
Subscription rights to shares shall deliver the same number as the remaining number of Subscription rights to shares held by it.
② Class of shares and numbers of restructured companies subject to Subscription rights to sharesClass of shares that is the object of Subscription rights to shares shall be the restructured company Common stock, and the number of restructured
company Common stock to be delivered upon the exercise of Subscription rights to shares shall be determined in accordance with 1. above after taking into
consideration the terms of the restructuring and other factors.
③ Value of Property Contributed upon Exercise of Subscription rights to shares
The value of the assets to be contributed upon the exercise of Subscription rights to shares to be delivered shall be the amount obtained by multiplying thepost-realignment exercise price stipulated below by the number of Equity securities subject to the respective Subscription rights to shares. The exercise priceafter the reorganization shall be 1 yen as the amount of Equity securities 1 Shares Per share of the reorganized companies that can be delivered by exercising
the delivered Subscription rights to shares.
④ Matters pertaining to obtaining Subscription rights to shares
In the event that an Absorption-type Merger Agreement, an Incorporation-type Merger Agreement, an Absorption-type Company Split Agreement inwhich we become a splitting company, an Incorporation-type Company Split Plan, or an Equity securities Exchange Agreement or a Equity securities
Transfer Plan in which we become a wholly owned subsidiary is approved in our Ordinary General Meeting of Shareholders (our Board of Directors in theevent that the approval of Ordinary General Meeting of Shareholders is not required), a Subscription rights to shares that has not been Exercise of rights as ofthe same date may be acquired without charge as of the date separately determined by our Board of Directors.
⑤ Restrictions on Transfer of Subscription rights to shares
Acquisition of Subscription rights to shares by transfer shall be subject to the approval of the Board of Directors of the Restructured Company.
⑥ Matters relating to the increasing Capital stock and Legal capital surplus in cases where Equity securities is issued upon the exercise of Subscription rights tosharesDetermine in accordance with 3 above.
On July 1, 6.2013, Common stock 1 Shares was split into 4 Shares by Equity securities. Accordingly, the number of shares targeted by Subscription rights to sharesis adjusted from 100 Shares to 400 Shares per unit.

- 48 -

2. Second Subscription rights to shares (Class B Subscription rights to shares)
Resolution Date

April 8, 2013
Directors 7

Category and number of grantees (persons)Executive Officers 1

Number of Subscription rights to shares (units)*

70

Class of shares, Details and numbers (Shares) that are the objectives of Subscription
rights to shares *Common stock 28 thousand (NOTE)1

Payment amount at exercise of Subscription rights to shares (Yen) *400(NOTE) 2

Strike term of Subscription rights to shares *From May 15, 2013 to May 14, 2053

For shares issued upon the exercise of Subscription rights to shares

Issue price 123,100

Issue price and amount designated as capital (Yen) *Amount included in capital 61,550 (NOTE)3

Terms of Exercise of Subscription rights to shares *(NOTE)4
Acquisition of Subscription rights to shares by assignment shall be approved by

Matters concerning transfer of Subscription rights to shares *the Board of Directors.

Issues related to the issuance of Subscription rights to shares associated with

(NOTE)5

reorganization activities*※ Details at the end of Current fiscal year (2024 March 31) is shown. As of the end of the previous month (May 31, 2024), there was no change in Details that should bestated from Details as of the end of Current fiscal year, the description related to the end of the previous month of the filing date has been omitted.
(NOTE)1. Class of shares that is the object of Subscription rights to shares shall be our Common stock and the target Equity securities per Subscription rights to shares(hereinafter referred to as "Grant Equity securities") shall be 400 Shares.
In addition, in the event we conduct a Equity securities split or Equity securities reverse split of our Common stock after the allocation date of Subscription
rights to shares, Grant Equity securities count shall be adjusted according to the following formula, and fractions less than 1 Shares resulting from theadjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stock split
In addition, in the event we merge or split after the date of allotment of Subscription rights to shares, or in the event of Equity securities gratuitous allotment,
or in the event Grant Equity securities count needs to be adjusted according to Other, Grant Equity securities count shall be appropriately adjusted to the extent
reasonable. Provided, however, that adjustments in this paragraph shall be made only for Subscription rights to shares that are not Exercise of rights at that point
in time and that are the target Equity securities numbers.
2.The value of the assets to be contributed upon the exercise of Subscription rights to shares shall be The amount shall be 1 yen per share that can be delivered
upon exercise of the Stock Acquisition Rights and multiplied by the total number of Granted Shares..
3.① The amount of Capital stock to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be 1-half of the amount of
the limit of increase in Capital stock, etc. calculated in accordance with Article 17 I of the Company Accounting Rules, and any fraction less than 1 (1)yen resulting from the calculation shall be rounded up.
② The amount of Legal capital surplus to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be the amountobtained by subtracting the amount of Capital stock to be increased as set forth in ① above from the maximum amount of Capital stock to be increased as
set forth in ① above.
4.① A. Subscription rights to shares Person may exercise Subscription rights to shares allocated to the relevant Subsidiaries and associates after the day following
the date on which the relevant Subscription rights to shares Person lost any of the positions of Director and Executive Officers of our group (whichmeans us and our group. The same shall apply hereinafter).
2. 1. Notwithstanding the foregoing, Subscription rights to shares shall not exercise Subscription rights to shares allocated to Subscription rights to sharesin any of the following cases:(i)Causes other than the death of Subscription rights to shares (excluding the cases of resignation, etc. stipulated in ii below for Within 3 years from thedate of allotment) If, by Subscription rights to shares, Director or Executive Officers status of our group is lost and 10 days have passed since theday following the date of loss(ii)In the event Subscription rights to shares loses any of the status of Director and Executive Officers of the Group to Within 3 years from the date ofallotment of Subscription rights to shares due to resignation or retirement for personal reasons or dismissal or disciplinary action pursuant toOrdinary General Meeting of Shareholders resolution or Board of Directors resolution of our Group.

- 49 -

② In the event of the death of Subscription rights to shares, only 1 of the heirs to Subscription rights to shares (hereinafter referred to as the "heir") shall beentitled to exercise Subscription rights to shares in accordance with the terms set forth below. Provided, however, that a person who is deemed to havecommitted a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and no later than the last day ofthe exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
5.In the event of a merger (limited to the case where the merger is extinguished), an absorption-type demerger, an incorporation-type demerger (each of whichbecomes a split company), or a Equity securities transfer (each of which becomes a wholly-owned subsidiary) (hereinafter collectively referred to as"organizational restructuring"), the effective date of the merger (the date of incorporation of the Kabushiki-Kaisha which is incorporated by consolidation withrespect to the merger, the date of the absorption-type demerger, and the date of incorporation of the parent corporation which is incorporated by Equity
securities transfer With respect to the rights to subscribe for new shares (hereinafter referred to as the "remaining rights to subscribe for new shares") which
exist immediately before the rights to subscribe for new shares (hereinafter referred to as the "restructured company") as set forth in Article 236, Paragraph 1,
Item (8) (a) through (e) of the Companies Act, the rights to subscribe for new shares shall be delivered in accordance with the following conditions: In suchcases, the remaining Subscription rights to shares shall be extinguished and Subscription rights to shares of the Restructured Companies shall be newly
delivered.
Provided, however, that this provision shall be limited to the cases where a merger contract, absorption-type demerger contract, incorporation-type demerger
plan, Equity securities replacement contract or Equity securities transfer plan stipulates that Subscription rights to shares of the Restructured Company shall bedelivered in accordance with the following terms:① Number of Subscription rights to shares of Reorganized Companies to be Delivered
Subscription rights to shares shall deliver the same number as the remaining number of Subscription rights to shares held by it.
② Class of shares and numbers of restructured companies subject to Subscription rights to sharesClass of shares that is the object of Subscription rights to shares shall be the restructured company Common stock, and the number of restructured
company Common stock to be delivered upon the exercise of Subscription rights to shares shall be determined in accordance with 1. above after taking into
consideration the terms of the restructuring and other factors.
③ Value of Property Contributed upon Exercise of Subscription rights to shares
The value of the assets to be contributed upon the exercise of Subscription rights to shares to be delivered shall be the amount obtained by multiplying thepost-realignment exercise price stipulated below by the number of Equity securities subject to the respective Subscription rights to shares. The exercise priceafter the reorganization shall be 1 yen as the amount of Equity securities 1 Shares Per share of the reorganized companies that can be delivered by exercising
the delivered Subscription rights to shares.
④ Matters pertaining to obtaining Subscription rights to shares
In the event that an Absorption-type Merger Agreement, an Incorporation-type Merger Agreement, an Absorption-type Company Split Agreement inwhich we become a splitting company, an Incorporation-type Company Split Plan, or an Equity securities Exchange Agreement or a Equity securities
Transfer Plan in which we become a wholly owned subsidiary is approved in our Ordinary General Meeting of Shareholders (our Board of Directors in theevent that the approval of Ordinary General Meeting of Shareholders is not required), a Subscription rights to shares that has not been Exercise of rights as ofthe same date may be acquired without charge as of the date separately determined by our Board of Directors.
⑤ Restrictions on Transfer of Subscription rights to shares
Acquisition of Subscription rights to shares by transfer shall be subject to the approval of the Board of Directors of the Restructured Company.
⑥ Matters relating to the increasing Capital stock and Legal capital surplus in cases where Equity securities is issued upon the exercise of Subscription rights tosharesDetermine in accordance with 3 above.
On July 1, 6.2013, Common stock 1 Shares was split into 4 Shares by Equity securities. Accordingly, the number of shares targeted by Subscription rights to sharesis adjusted from 100 Shares to 400 Shares per unit.

- 50 -

3. Third Subscription rights to shares (Class B Subscription rights to shares)
Resolution Date

April 11, 2014
Directors 7

Category and number of grantees (persons)Executive Officers 2

Number of Subscription rights to shares (units)*

69

Class of shares, Details and numbers (Shares) that are the objectives of Subscription
rights to shares *Common stock 27.6 thousand (NOTE)1

Payment amount at exercise of Subscription rights to shares (Yen) *400(NOTE) 2

Strike term of Subscription rights to shares *From May 2014, 2014 to May 13, 2054

For shares issued upon the exercise of Subscription rights to shares

Issue price 74,800

Issue price and amount designated as capital (Yen) *Amount included in capital 37.4 thousand (NOTE)3

Terms of Exercise of Subscription rights to shares *(NOTE)4
Acquisition of Subscription rights to shares by assignment shall be approved by

Matters concerning transfer of Subscription rights to shares *the Board of Directors.

Issues related to the issuance of Subscription rights to shares associated with

(NOTE)5

reorganization activities*※ Details at the end of Current fiscal year (2024 March 31) is shown. As of the end of the previous month (May 31, 2024), there was no change in Details that should bestated from Details as of the end of Current fiscal year, the description related to the end of the previous month of the filing date has been omitted.
(NOTE)1. Class of shares that is the object of Subscription rights to shares shall be our Common stock and the target Equity securities per Subscription rights to shares(hereinafter referred to as "Grant Equity securities") shall be 400 Shares.
In addition, in the event we conduct a Equity securities split or Equity securities reverse split of our Common stock after the allocation date of Subscription
rights to shares, Grant Equity securities count shall be adjusted according to the following formula, and fractions less than 1 Shares resulting from theadjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stock split
In addition, in the event we merge or split after the date of allotment of Subscription rights to shares, or in the event of Equity securities gratuitous allotment,
or in the event Grant Equity securities count needs to be adjusted according to Other, Grant Equity securities count shall be appropriately adjusted to the extent
reasonable. Provided, however, that adjustments in this paragraph shall be made only for Subscription rights to shares that are not Exercise of rights at that point
in time and that are the target Equity securities numbers.
2.The value of the assets to be contributed upon the exercise of Subscription rights to shares shall be The amount shall be 1 yen per share that can be delivered
upon exercise of the Stock Acquisition Rights and multiplied by the total number of Granted Shares..
3.① The amount of Capital stock to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be 1-half of the amount of
the limit of increase in Capital stock, etc. calculated in accordance with Article 17 I of the Company Accounting Rules, and any fraction less than 1 (1)yen resulting from the calculation shall be rounded up.
② The amount of Legal capital surplus to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be the amountobtained by subtracting the amount of Capital stock to be increased as set forth in ① above from the maximum amount of Capital stock to be increased as
set forth in ① above.
4.① A. Subscription rights to shares Person may exercise Subscription rights to shares allocated to the relevant Subsidiaries and associates after the day following
the date on which the relevant Subscription rights to shares Person lost any of the positions of Director and Executive Officers of our group (whichmeans us and our group. The same shall apply hereinafter).
2. 1. Notwithstanding the foregoing, Subscription rights to shares shall not exercise Subscription rights to shares allocated to Subscription rights to sharesin any of the following cases:(i)Causes other than the death of Subscription rights to shares (excluding the cases of resignation, etc. stipulated in ii below for Within 3 years from thedate of allotment) If, by Subscription rights to shares, Director or Executive Officers status of our group is lost and 10 days have passed since theday following the date of loss(ii)In the event Subscription rights to shares loses any of the status of Director and Executive Officers of the Group to Within 3 years from the date ofallotment of Subscription rights to shares due to resignation or retirement for personal reasons or dismissal or disciplinary action pursuant toOrdinary General Meeting of Shareholders resolution or Board of Directors resolution of our Group.

- 51 -

② In the event of the death of Subscription rights to shares, only 1 of the heirs to Subscription rights to shares (hereinafter referred to as the "heir") shall beentitled to exercise Subscription rights to shares in accordance with the terms set forth below. Provided, however, that a person who is deemed to havecommitted a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and no later than the last day ofthe exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
5.In the event of a merger (limited to the case where the merger is extinguished), an absorption-type demerger, an incorporation-type demerger (each of whichbecomes a split company), or a Equity securities transfer (each of which becomes a wholly-owned subsidiary) (hereinafter collectively referred to as"organizational restructuring"), the effective date of the merger (the date of incorporation of the Kabushiki-Kaisha which is incorporated by consolidation withrespect to the merger, the date of the absorption-type demerger, and the date of incorporation of the parent corporation which is incorporated by Equity
securities transfer With respect to the rights to subscribe for new shares (hereinafter referred to as the "remaining rights to subscribe for new shares") which
exist immediately before the rights to subscribe for new shares (hereinafter referred to as the "restructured company") as set forth in Article 236, Paragraph 1,
Item (8) (a) through (e) of the Companies Act, the rights to subscribe for new shares shall be delivered in accordance with the following conditions: In suchcases, the remaining Subscription rights to shares shall be extinguished and Subscription rights to shares of the Restructured Companies shall be newly
delivered.
Provided, however, that this provision shall be limited to the cases where a merger contract, absorption-type demerger contract, incorporation-type demerger
plan, Equity securities replacement contract or Equity securities transfer plan stipulates that Subscription rights to shares of the Restructured Company shall bedelivered in accordance with the following terms:① Number of Subscription rights to shares of Reorganized Companies to be Delivered
Subscription rights to shares shall deliver the same number as the remaining number of Subscription rights to shares held by it.
② Class of shares and numbers of restructured companies subject to Subscription rights to sharesClass of shares that is the object of Subscription rights to shares shall be the restructured company Common stock, and the number of restructured
company Common stock to be delivered upon the exercise of Subscription rights to shares shall be determined in accordance with 1. above after taking into
consideration the terms of the restructuring and other factors.
③ Value of Property Contributed upon Exercise of Subscription rights to shares
The value of the assets to be contributed upon the exercise of Subscription rights to shares to be delivered shall be the amount obtained by multiplying thepost-realignment exercise price stipulated below by the number of Equity securities subject to the respective Subscription rights to shares. The exercise priceafter the reorganization shall be 1 yen as the amount of Equity securities 1 Shares Per share of the reorganized companies that can be delivered by exercising
the delivered Subscription rights to shares.
④ Matters pertaining to obtaining Subscription rights to shares
In the event that an Absorption-type Merger Agreement, an Incorporation-type Merger Agreement, an Absorption-type Company Split Agreement inwhich we become a splitting company, an Incorporation-type Company Split Plan, or an Equity securities Exchange Agreement or a Equity securities
Transfer Plan in which we become a wholly owned subsidiary is approved in our Ordinary General Meeting of Shareholders (our Board of Directors in theevent that the approval of Ordinary General Meeting of Shareholders is not required), a Subscription rights to shares that has not been Exercise of rights as ofthe same date may be acquired without charge as of the date separately determined by our Board of Directors.
⑤ Restrictions on Transfer of Subscription rights to shares
Acquisition of Subscription rights to shares by transfer shall be subject to the approval of the Board of Directors of the Restructured Company.
⑥ Matters relating to the increasing Capital stock and Legal capital surplus in cases where Equity securities is issued upon the exercise of Subscription rights tosharesDetermine in accordance with 3 above.

- 52 -

4. 4th Subscription rights to shares (Class B Subscription rights to shares)
Resolution Date

June 24, 2015
Directors 7

Category and number of grantees (persons)Executive Officers 3

Number of Subscription rights to shares (units)*

80

Class of shares, Details and numbers (Shares) that are the objectives of Subscription
rights to shares *Common stock 32 thousand (NOTE)1

Payment amount at exercise of Subscription rights to shares (Yen) *400(NOTE) 2

Strike term of Subscription rights to shares *From July 2015, 2015 to July 14, 2055

For shares issued upon the exercise of Subscription rights to shares

Issue price 189,200

Issue price and amount designated as capital (Yen) *Amount included in capital 94.6 thousand (NOTE)3

Terms of Exercise of Subscription rights to shares *(NOTE)4
Acquisition of Subscription rights to shares by assignment shall be approved by

Matters concerning transfer of Subscription rights to shares *the Board of Directors.

Issues related to the issuance of Subscription rights to shares associated with

(NOTE)5

reorganization activities*※ Details at the end of Current fiscal year (2024 March 31) is shown. As of the end of the previous month (May 31, 2024), there was no change in Details that should bestated from Details as of the end of Current fiscal year, the description related to the end of the previous month of the filing date has been omitted.
(NOTE)1. Class of shares that is the object of Subscription rights to shares shall be our Common stock and the target Equity securities per Subscription rights to shares(hereinafter referred to as "Grant Equity securities") shall be 400 Shares.
In addition, in the event we conduct a Equity securities split or Equity securities reverse split of our Common stock after the allocation date of Subscription
rights to shares, Grant Equity securities count shall be adjusted according to the following formula, and fractions less than 1 Shares resulting from theadjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stock split
In addition, in the event we merge or split after the date of allotment of Subscription rights to shares, or in the event of Equity securities gratuitous allotment,
or in the event Grant Equity securities count needs to be adjusted according to Other, Grant Equity securities count shall be appropriately adjusted to the extent
reasonable. Provided, however, that adjustments in this paragraph shall be made only for Subscription rights to shares that are not Exercise of rights at that point
in time and that are the target Equity securities numbers.
2.The value of the assets to be contributed upon the exercise of Subscription rights to shares shall be The amount shall be 1 yen per share that can be delivered
upon exercise of the Stock Acquisition Rights and multiplied by the total number of Granted Shares..
3.① The amount of Capital stock to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be 1-half of the amount of
the limit of increase in Capital stock, etc. calculated in accordance with Article 17 I of the Company Accounting Rules, and any fraction less than 1 (1)yen resulting from the calculation shall be rounded up.
② The amount of Legal capital surplus to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be the amountobtained by subtracting the amount of Capital stock to be increased as set forth in ① above from the maximum amount of Capital stock to be increased as
set forth in ① above.
4.① A. Subscription rights to shares Person may exercise Subscription rights to shares allocated to the relevant Subsidiaries and associates after the day following
the date on which the relevant Subscription rights to shares Person lost any of the positions of Director and Executive Officers of our group (whichmeans us and our group. The same shall apply hereinafter).
2. 1. Notwithstanding the foregoing, Subscription rights to shares shall not exercise Subscription rights to shares allocated to Subscription rights to sharesin any of the following cases:(i)Causes other than the death of Subscription rights to shares (excluding the cases of resignation, etc. stipulated in ii below for Within 3 years from thedate of allotment) If, by Subscription rights to shares, Director or Executive Officers status of our group is lost and 10 days have passed since theday following the date of loss(ii)In the event Subscription rights to shares loses any of the status of Director and Executive Officers of the Group to Within 3 years from the date ofallotment of Subscription rights to shares due to resignation or retirement for personal reasons or dismissal or disciplinary action pursuant toOrdinary General Meeting of Shareholders resolution or Board of Directors resolution of our Group.

- 53 -

② In the event of the death of Subscription rights to shares, only 1 of the heirs to Subscription rights to shares (hereinafter referred to as the "heir") shall beentitled to exercise Subscription rights to shares in accordance with the terms set forth below. Provided, however, that a person who is deemed to havecommitted a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and no later than the last day ofthe exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
5.In the event of a merger (limited to the case where the merger is extinguished), an absorption-type demerger, an incorporation-type demerger (each of whichbecomes a split company), or a Equity securities transfer (each of which becomes a wholly-owned subsidiary) (hereinafter collectively referred to as"organizational restructuring"), the effective date of the merger (the date of incorporation of the Kabushiki-Kaisha which is incorporated by consolidation withrespect to the merger, the date of the absorption-type demerger, and the date of incorporation of the parent corporation which is incorporated by Equity
securities transfer With respect to the rights to subscribe for new shares (hereinafter referred to as the "remaining rights to subscribe for new shares") which
exist immediately before the rights to subscribe for new shares (hereinafter referred to as the "restructured company") as set forth in Article 236, Paragraph 1,
Item (8) (a) through (e) of the Companies Act, the rights to subscribe for new shares shall be delivered in accordance with the following conditions: In suchcases, the remaining Subscription rights to shares shall be extinguished and Subscription rights to shares of the Restructured Companies shall be newly
delivered.
Provided, however, that this provision shall be limited to the cases where a merger contract, absorption-type demerger contract, incorporation-type demerger
plan, Equity securities replacement contract or Equity securities transfer plan stipulates that Subscription rights to shares of the Restructured Company shall bedelivered in accordance with the following terms:① Number of Subscription rights to shares of Reorganized Companies to be Delivered
Subscription rights to shares shall deliver the same number as the remaining number of Subscription rights to shares held by it.
② Class of shares and numbers of restructured companies subject to Subscription rights to sharesClass of shares that is the object of Subscription rights to shares shall be the restructured company Common stock, and the number of restructured
company Common stock to be delivered upon the exercise of Subscription rights to shares shall be determined in accordance with 1. above after taking into
consideration the terms of the restructuring and other factors.
③ Value of Property Contributed upon Exercise of Subscription rights to shares
The value of the assets to be contributed upon the exercise of Subscription rights to shares to be delivered shall be the amount obtained by multiplying thepost-realignment exercise price stipulated below by the number of Equity securities subject to the respective Subscription rights to shares. The exercise priceafter the reorganization shall be 1 yen as the amount of Equity securities 1 Shares Per share of the reorganized companies that can be delivered by exercising
the delivered Subscription rights to shares.
④ Matters pertaining to obtaining Subscription rights to shares
In the event that an Absorption-type Merger Agreement, an Incorporation-type Merger Agreement, an Absorption-type Company Split Agreement inwhich we become a splitting company, an Incorporation-type Company Split Plan, or an Equity securities Exchange Agreement or a Equity securities
Transfer Plan in which we become a wholly owned subsidiary is approved in our Ordinary General Meeting of Shareholders (our Board of Directors in theevent that the approval of Ordinary General Meeting of Shareholders is not required), a Subscription rights to shares that has not been Exercise of rights as ofthe same date may be acquired without charge as of the date separately determined by our Board of Directors.
⑤ Restrictions on Transfer of Subscription rights to shares
Acquisition of Subscription rights to shares by transfer shall be subject to the approval of the Board of Directors of the Restructured Company.
⑥ Matters relating to the increasing Capital stock and Legal capital surplus in cases where Equity securities is issued upon the exercise of Subscription rights tosharesDetermine in accordance with 3 above.

- 54 -

5. 5th Subscription rights to shares (Class B Subscription rights to shares)
Resolution Date

April 11, 2016
Directors 7

Category and number of grantees (persons)Executive Officers 2

Number of Subscription rights to shares (units)*

80

Class of shares, Details and numbers (Shares) that are the objectives of Subscription
rights to shares *Common stock 32 thousand (NOTE)1

Payment amount at exercise of Subscription rights to shares (Yen) *400(NOTE) 2

Strike term of Subscription rights to shares *From May 11, 2016 to May 10, 2056

For shares issued upon the exercise of Subscription rights to shares

Issue price 192,400

Issue price and amount designated as capital (Yen) *Amount included in capital 96.2 thousand (NOTE)3

Terms of Exercise of Subscription rights to shares *(NOTE)4
Acquisition of Subscription rights to shares by assignment shall be approved by

Matters concerning transfer of Subscription rights to shares *the Board of Directors.

Issues related to the issuance of Subscription rights to shares associated with

(NOTE)5

reorganization activities*※ Details at the end of Current fiscal year (2024 March 31) is shown. As of the end of the previous month (May 31, 2024), there was no change in Details that should bestated from Details as of the end of Current fiscal year, the description related to the end of the previous month of the filing date has been omitted.
(NOTE)1. Class of shares that is the object of Subscription rights to shares shall be our Common stock and the target Equity securities per Subscription rights to shares(hereinafter referred to as "Grant Equity securities") shall be 400 Shares.
In addition, in the event we conduct a Equity securities split or Equity securities reverse split of our Common stock after the allocation date of Subscription
rights to shares, Grant Equity securities count shall be adjusted according to the following formula, and fractions less than 1 Shares resulting from theadjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stock split
In addition, in the event we merge or split after the date of allotment of Subscription rights to shares, or in the event of Equity securities gratuitous allotment,
or in the event Grant Equity securities count needs to be adjusted according to Other, Grant Equity securities count shall be appropriately adjusted to the extent
reasonable. Provided, however, that adjustments in this paragraph shall be made only for Subscription rights to shares that are not Exercise of rights at that point
in time and that are the target Equity securities numbers.
2.The value of the assets to be contributed upon the exercise of Subscription rights to shares shall be The amount shall be 1 yen per share that can be delivered
upon exercise of the Stock Acquisition Rights and multiplied by the total number of Granted Shares..
3.① The amount of Capital stock to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be 1-half of the amount of
the limit of increase in Capital stock, etc. calculated in accordance with Article 17 I of the Company Accounting Rules, and any fraction less than 1 (1)yen resulting from the calculation shall be rounded up.
② The amount of Legal capital surplus to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be the amountobtained by subtracting the amount of Capital stock to be increased as set forth in ① above from the maximum amount of Capital stock to be increased as
set forth in ① above.
4.① A. Subscription rights to shares Person may exercise Subscription rights to shares allocated to the relevant Subsidiaries and associates after the day following
the date on which the relevant Subscription rights to shares Person lost any of the positions of Director and Executive Officers of our group (whichmeans us and our group. The same shall apply hereinafter).
2. 1. Notwithstanding the foregoing, Subscription rights to shares shall not exercise Subscription rights to shares allocated to Subscription rights to sharesin any of the following cases:(i)Causes other than the death of Subscription rights to shares (excluding the cases of resignation, etc. stipulated in ii below for Within 3 years from thedate of allotment) If, by Subscription rights to shares, Director or Executive Officers status of our group is lost and 10 days have passed since theday following the date of loss(ii)In the event Subscription rights to shares loses any of the status of Director and Executive Officers of the Group to Within 3 years from the date ofallotment of Subscription rights to shares due to resignation or retirement for personal reasons or dismissal or disciplinary action pursuant toOrdinary General Meeting of Shareholders resolution or Board of Directors resolution of our Group.

- 55 -

② In the event of the death of Subscription rights to shares, only 1 of the heirs to Subscription rights to shares (hereinafter referred to as the "heir") shall beentitled to exercise Subscription rights to shares in accordance with the terms set forth below. Provided, however, that a person who is deemed to havecommitted a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and no later than the last day ofthe exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
5.In the event of a merger (limited to the case where the merger is extinguished), an absorption-type demerger, an incorporation-type demerger (each of whichbecomes a split company), or a Equity securities transfer (each of which becomes a wholly-owned subsidiary) (hereinafter collectively referred to as"organizational restructuring"), the effective date of the merger (the date of incorporation of the Kabushiki-Kaisha which is incorporated by consolidation withrespect to the merger, the date of the absorption-type demerger, and the date of incorporation of the parent corporation which is incorporated by Equity
securities transfer With respect to the rights to subscribe for new shares (hereinafter referred to as the "remaining rights to subscribe for new shares") which
exist immediately before the rights to subscribe for new shares (hereinafter referred to as the "restructured company") as set forth in Article 236, Paragraph 1,
Item (8) (a) through (e) of the Companies Act, the rights to subscribe for new shares shall be delivered in accordance with the following conditions: In suchcases, the remaining Subscription rights to shares shall be extinguished and Subscription rights to shares of the Restructured Companies shall be newly
delivered.
Provided, however, that this provision shall be limited to the cases where a merger contract, absorption-type demerger contract, incorporation-type demerger
plan, Equity securities replacement contract or Equity securities transfer plan stipulates that Subscription rights to shares of the Restructured Company shall bedelivered in accordance with the following terms:① Number of Subscription rights to shares of Reorganized Companies to be Delivered
Subscription rights to shares shall deliver the same number as the remaining number of Subscription rights to shares held by it.
② Class of shares and numbers of restructured companies subject to Subscription rights to sharesClass of shares that is the object of Subscription rights to shares shall be the restructured company Common stock, and the number of restructured
company Common stock to be delivered upon the exercise of Subscription rights to shares shall be determined in accordance with 1. above after taking into
consideration the terms of the restructuring and other factors.
③ Value of Property Contributed upon Exercise of Subscription rights to shares
The value of the assets to be contributed upon the exercise of Subscription rights to shares to be delivered shall be the amount obtained by multiplying thepost-realignment exercise price stipulated below by the number of Equity securities subject to the respective Subscription rights to shares. The exercise priceafter the reorganization shall be 1 yen as the amount of Equity securities 1 Shares Per share of the reorganized companies that can be delivered by exercising
the delivered Subscription rights to shares.
④ Matters pertaining to obtaining Subscription rights to shares
In the event that an Absorption-type Merger Agreement, an Incorporation-type Merger Agreement, an Absorption-type Company Split Agreement inwhich we become a splitting company, an Incorporation-type Company Split Plan, or an Equity securities Exchange Agreement or a Equity securities
Transfer Plan in which we become a wholly owned subsidiary is approved in our Ordinary General Meeting of Shareholders (our Board of Directors in theevent that the approval of Ordinary General Meeting of Shareholders is not required), a Subscription rights to shares that has not been Exercise of rights as ofthe same date may be acquired without charge as of the date separately determined by our Board of Directors.
⑤ Restrictions on Transfer of Subscription rights to shares
Acquisition of Subscription rights to shares by transfer shall be subject to the approval of the Board of Directors of the Restructured Company.
⑥ Matters relating to the increasing Capital stock and Legal capital surplus in cases where Equity securities is issued upon the exercise of Subscription rights tosharesDetermine in accordance with 3 above.

- 56 -

6. 6th Subscription rights to shares (Class B Subscription rights to shares)
Resolution Date

June 27, 2017
Directors 6

Category and number of grantees (persons)Executive Officers 5

Number of Subscription rights to shares (units)*

190

Class of shares, Details and numbers (Shares) that are the objectives of Subscription
rights to shares *Common stock 76 thousand (NOTE)1

Payment amount at exercise of Subscription rights to shares (Yen) *400(NOTE) 2

Strike term of Subscription rights to shares *From July 12, 2017 to July 11, 2057

For shares issued upon the exercise of Subscription rights to shares

Issue price 126,800

Issue price and amount designated as capital (Yen) *Amount included in capital 63.4 thousand (NOTE)3

Terms of Exercise of Subscription rights to shares *(NOTE)4
Acquisition of Subscription rights to shares by assignment shall be approved by

Matters concerning transfer of Subscription rights to shares *the Board of Directors.

Issues related to the issuance of Subscription rights to shares associated with

(NOTE)5

reorganization activities*※ Details at the end of Current fiscal year (2024 March 31) is shown. As of the end of the previous month (May 31, 2024), there was no change in Details that should bestated from Details as of the end of Current fiscal year, the description related to the end of the previous month of the filing date has been omitted.
(NOTE)1. Class of shares that is the object of Subscription rights to shares shall be our Common stock and the target Equity securities per Subscription rights to shares(hereinafter referred to as "Grant Equity securities") shall be 400 Shares.
In addition, in the event we conduct a Equity securities split or Equity securities reverse split of our Common stock after the allocation date of Subscription
rights to shares, Grant Equity securities count shall be adjusted according to the following formula, and fractions less than 1 Shares resulting from theadjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stock split
In addition, in the event we merge or split after the date of allotment of Subscription rights to shares, or in the event of Equity securities gratuitous allotment,
or in the event Grant Equity securities count needs to be adjusted according to Other, Grant Equity securities count shall be appropriately adjusted to the extent
reasonable. Provided, however, that adjustments in this paragraph shall be made only for Subscription rights to shares that are not Exercise of rights at that point
in time and that are the target Equity securities numbers.
2.The value of the assets to be contributed upon the exercise of Subscription rights to shares shall be The amount shall be 1 yen per share that can be delivered
upon exercise of the Stock Acquisition Rights and multiplied by the total number of Granted Shares..
3.① The amount of Capital stock to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be 1-half of the amount of
the limit of increase in Capital stock, etc. calculated in accordance with Article 17 I of the Company Accounting Rules, and any fraction less than 1 (1)yen resulting from the calculation shall be rounded up.
② The amount of Legal capital surplus to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be the amountobtained by subtracting the amount of Capital stock to be increased as set forth in ① above from the maximum amount of Capital stock to be increased as
set forth in ① above.
4.① Subscription rights to shares Person may exercise Subscription rights to shares allocated to the relevant Subsidiaries and associates after the day following thedate on which the relevant Subscription rights to shares Person lost any of the positions of Director and Executive Officers of our group (which means us
and our group. The same shall apply hereinafter).
② Notwithstanding the provisions of paragraph ① above, in the event the Subject Person to whom Subscription rights to shares has been allocated falls
under any of the following items, the Subject Person shall not be entitled to exercise his/her rights:
1. Failure to Exercise Rights during the Exercise Period
2. In the event of disciplinary punishment not less than suspension from work
3. In the event of the loss of either Director or Executive Officers status of our group due to the resignation of Within 3 years from the date of
Subscription rights to shares allocation for personal reasons (excluding retirement due to the expiration of Term of Office or retirement or retirement
due to the convenience of our group)
4. In the event that any of Director and Executive Officers status of our group is lost due to Ordinary General Meeting of Shareholders resolution or
dismissal or disciplinary action by Board of Directors resolution of our group, or that it is reasonably accepted that it is not appropriate to have our
Board of Directors exercise Subscription rights to shares
5. When the Subject Person requests to waive his/her rights- 57 -

③ In the event of the death of Subscription rights to shares, only 1 of the heirs to Subscription rights to shares (hereinafter referred to as the "heir") shall beentitled to exercise Subscription rights to shares in accordance with the terms set forth below. Provided, however, that a person who is deemed to havecommitted a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and no later than the last day ofthe exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
5.In the event of a merger (limited to the case where the merger is extinguished), an absorption-type demerger, an incorporation-type demerger (each of whichbecomes a split company), or a Equity securities transfer (each of which becomes a wholly-owned subsidiary) (hereinafter collectively referred to as"organizational restructuring"), the effective date of the merger (the date of incorporation of the Kabushiki-Kaisha which is incorporated by consolidation withrespect to the merger, the date of the absorption-type demerger, and the date of incorporation of the parent corporation which is incorporated by Equity
securities transfer With respect to the rights to subscribe for new shares (hereinafter referred to as the "remaining rights to subscribe for new shares") which
exist immediately before the rights to subscribe for new shares (hereinafter referred to as the "restructured company") as set forth in Article 236, Paragraph 1,
Item (8) (a) through (e) of the Companies Act, the rights to subscribe for new shares shall be delivered in accordance with the following conditions: In suchcases, the remaining Subscription rights to shares shall be extinguished and Subscription rights to shares of the Restructured Companies shall be newly
delivered.
Provided, however, that this provision shall be limited to the cases where a merger contract, absorption-type demerger contract, incorporation-type demerger
plan, Equity securities replacement contract or Equity securities transfer plan stipulates that Subscription rights to shares of the Restructured Company shall bedelivered in accordance with the following terms:① Number of Subscription rights to shares of Reorganized Companies to be Delivered
Subscription rights to shares shall deliver the same number as the remaining number of Subscription rights to shares held by it.
② Class of shares and numbers of restructured companies subject to Subscription rights to sharesClass of shares that is the object of Subscription rights to shares shall be the restructured company Common stock, and the number of restructured
company Common stock to be delivered upon the exercise of Subscription rights to shares shall be determined in accordance with 1. above after taking into
consideration the terms of the restructuring and other factors.
③ Value of Property Contributed upon Exercise of Subscription rights to shares
The value of the assets to be contributed upon the exercise of Subscription rights to shares to be delivered shall be the amount obtained by multiplying thepost-realignment exercise price stipulated below by the number of Equity securities subject to the respective Subscription rights to shares. The exercise priceafter the reorganization shall be 1 yen as the amount of Equity securities 1 Shares Per share of the reorganized companies that can be delivered by exercising
the delivered Subscription rights to shares.
④ Matters pertaining to obtaining Subscription rights to shares
In the event that an Absorption-type Merger Agreement, an Incorporation-type Merger Agreement, an Absorption-type Company Split Agreement inwhich we become a splitting company, an Incorporation-type Company Split Plan, or an Equity securities Exchange Agreement or a Equity securities
Transfer Plan in which we become a wholly owned subsidiary is approved in our Ordinary General Meeting of Shareholders (our Board of Directors in theevent that the approval of Ordinary General Meeting of Shareholders is not required), a Subscription rights to shares that has not been Exercise of rights as ofthe same date may be acquired without charge as of the date separately determined by our Board of Directors.
⑤ Restrictions on Transfer of Subscription rights to shares
Acquisition of Subscription rights to shares by transfer shall be subject to the approval of the Board of Directors of the Restructured Company.
⑥ Matters relating to the increasing Capital stock and Legal capital surplus in cases where Equity securities is issued upon the exercise of Subscription rights tosharesDetermine in accordance with 3 above.

- 58 -

7. Seventh Subscription rights to shares (Class B Subscription rights to shares)
Resolution Date

August 2, 2018
Directors 7

Category and number of grantees (persons)Executive Officer 7

Number of Subscription rights to shares (units)*

210

Class of shares, Details and numbers (Shares) that are the objectives of Subscription
rights to shares *Common stock 84 thousand (NOTE)1

Payment amount at exercise of Subscription rights to shares (Yen) *400(NOTE) 2

Strike term of Subscription rights to shares *From August 29, 2018 to August 28, 2058

For shares issued upon the exercise of Subscription rights to shares

Issue price 101,600

Issue price and amount designated as capital (Yen) *Amount included in capital 50.8 thousand (NOTE)3

Terms of Exercise of Subscription rights to shares *(NOTE)4
Acquisition of Subscription rights to shares by assignment shall be approved by

Matters concerning transfer of Subscription rights to shares *the Board of Directors.

Issues related to the issuance of Subscription rights to shares associated with

(NOTE)5

reorganization activities*※ Details at the end of Current fiscal year (2024 March 31) is shown. As of the end of the previous month (May 31, 2024), there was no change in Details that should bestated from Details as of the end of Current fiscal year, the description related to the end of the previous month of the filing date has been omitted.
(NOTE)1. Class of shares that is the object of Subscription rights to shares shall be our Common stock and the target Equity securities per Subscription rights to shares(hereinafter referred to as "Grant Equity securities") shall be 400 Shares.
In addition, in the event we conduct a Equity securities split or Equity securities reverse split of our Common stock after the allocation date of Subscription
rights to shares, Grant Equity securities count shall be adjusted according to the following formula, and fractions less than 1 Shares resulting from theadjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stock split
In addition, in the event of a merger, corporate split, Equity securities split, or Equity securities reverse split, or Other free allotment, or in the event Grant
Equity securities count needs to be adjusted accordingly, Grant Equity securities count shall be appropriately adjusted to the extent reasonable.
Provided, however, that adjustments in this paragraph shall be made only for Subscription rights to shares that are not Exercise of rights at that point in time
and that are the target Equity securities numbers.
2.The value of the assets to be contributed upon the exercise of Subscription rights to shares shall be The amount shall be 1 yen per share that can be delivered
upon exercise of the Stock Acquisition Rights and multiplied by the total number of Granted Shares..
3.① The amount of Capital stock to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be 1-half of the amount of
the limit of increase in Capital stock, etc. calculated in accordance with Article 17 I of the Company Accounting Rules, and any fraction less than 1 (1)yen resulting from the calculation shall be rounded up.
② The amount of Legal capital surplus to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be the amountobtained by subtracting the amount of Capital stock to be increased as set forth in ① above from the maximum amount of Capital stock to be increased as
set forth in ① above.
4.① Subscription rights to shares Person may exercise Subscription rights to shares allocated to the relevant Subsidiaries and associates after the day following thedate on which the relevant Subscription rights to shares Person lost any of the positions of Director and Executive Officers of our group (which means us
and our group. The same shall apply hereinafter).
② Notwithstanding the provisions of paragraph ① above, in the event the Subject Person to whom Subscription rights to shares has been allocated falls
under any of the following items, the Subject Person shall not be entitled to exercise his/her rights:
1. Failure to Exercise Rights during the Exercise Period
2. In the event of disciplinary punishment not less than suspension from work
3. In the event of the loss of either Director or Executive Officers status of our group due to the resignation of Within 1 year from the date of Subscription
rights to shares allocation for personal reasons (excluding retirement due to the expiration of Term of Office or retirement or retirement due to theconvenience of our group)
4. In the event that any of Director and Executive Officers status of our group is lost due to Ordinary General Meeting of Shareholders resolution or
dismissal or disciplinary action by Board of Directors resolution of our group, or that it is reasonably accepted that it is not appropriate to have our
Board of Directors exercise Subscription rights to shares
5. When the Subject Person requests to waive his/her rights- 59 -

③ In the event of the death of Subscription rights to shares, only 1 of the heirs to Subscription rights to shares (hereinafter referred to as the "heir") shall beentitled to exercise Subscription rights to shares in accordance with the terms set forth below. Provided, however, that a person who is deemed to havecommitted a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and no later than the last day ofthe exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
5.In the event of a merger (limited to the case where the merger is extinguished), an absorption-type demerger, an incorporation-type demerger (each of whichbecomes a split company), or a Equity securities transfer (each of which becomes a wholly-owned subsidiary) (hereinafter collectively referred to as"organizational restructuring"), the effective date of the merger (the date of incorporation of the Kabushiki-Kaisha which is incorporated by consolidation withrespect to the merger, the date of the absorption-type demerger, and the date of incorporation of the parent corporation which is incorporated by Equity
securities transfer With respect to the rights to subscribe for new shares (hereinafter referred to as the "remaining rights to subscribe for new shares") which
exist immediately before the rights to subscribe for new shares (hereinafter referred to as the "restructured company") as set forth in Article 236, Paragraph 1,
Item (8) (a) through (e) of the Companies Act, the rights to subscribe for new shares shall be delivered in accordance with the following conditions: In suchcases, the remaining Subscription rights to shares shall be extinguished and Subscription rights to shares of the Restructured Companies shall be newly
delivered.
Provided, however, that this provision shall be limited to the cases where a merger contract, absorption-type demerger contract, incorporation-type demerger
plan, Equity securities replacement contract or Equity securities transfer plan stipulates that Subscription rights to shares of the Restructured Company shall bedelivered in accordance with the following terms:① Number of Subscription rights to shares of Reorganized Companies to be Delivered
Subscription rights to shares shall deliver the same number as the remaining number of Subscription rights to shares held by it.
② Class of shares and numbers of restructured companies subject to Subscription rights to sharesClass of shares that is the object of Subscription rights to shares shall be the restructured company Common stock, and the number of restructured
company Common stock to be delivered upon the exercise of Subscription rights to shares shall be determined in accordance with 1. above after taking into
consideration the terms of the restructuring and other factors.
③ Value of Property Contributed upon Exercise of Subscription rights to shares
The value of the assets to be contributed upon the exercise of Subscription rights to shares to be delivered shall be the amount obtained by multiplying thepost-realignment exercise price stipulated below by the number of Equity securities subject to the respective Subscription rights to shares. The exercise priceafter the reorganization shall be 1 yen as the amount of Equity securities 1 Shares Per share of the reorganized companies that can be delivered by exercising
the delivered Subscription rights to shares.
④ Matters pertaining to obtaining Subscription rights to shares
In the event that an Absorption-type Merger Agreement, an Incorporation-type Merger Agreement, an Absorption-type Company Split Agreement inwhich we become a splitting company, an Incorporation-type Company Split Plan, or an Equity securities Exchange Agreement or a Equity securities
Transfer Plan in which we become a wholly owned subsidiary is approved in our Ordinary General Meeting of Shareholders (our Board of Directors in theevent that the approval of Ordinary General Meeting of Shareholders is not required), a Subscription rights to shares that has not been Exercise of rights as ofthe same date may be acquired without charge as of the date separately determined by our Board of Directors.
⑤ Restrictions on Transfer of Subscription rights to shares
Acquisition of Subscription rights to shares by transfer shall be subject to the approval of the Board of Directors of the Restructured Company.
⑥ Matters relating to the increasing Capital stock and Legal capital surplus in cases where Equity securities is issued upon the exercise of Subscription rights tosharesDetermine in accordance with 3 above.

- 60 -

(h) 8th Subscription rights to shares (Class B Subscription rights to shares)
Resolution Date

July 1, 2019
Directors 7

Category and number of grantees (persons)Executive Officers 6

Number of Subscription rights to shares (units)*

210

Class of shares, Details and numbers (Shares) that are the objectives of Subscription
rights to shares *Common stock 84 thousand (NOTE)1

Payment amount at exercise of Subscription rights to shares (Yen) *400(NOTE) 2

Strike term of Subscription rights to shares *From July 31, 2019 to July 30, 2059

For shares issued upon the exercise of Subscription rights to shares

Issue price 116,400

Issue price and amount designated as capital (Yen) *Amount included in capital 58.2 thousand (NOTE)3

Terms of Exercise of Subscription rights to shares *(NOTE)4
Acquisition of Subscription rights to shares by assignment shall be approved by

Matters concerning transfer of Subscription rights to shares *the Board of Directors.

Issues related to the issuance of Subscription rights to shares associated with

(NOTE)5

reorganization activities*※ Details at the end of Current fiscal year (2024 March 31) is shown. As of the end of the previous month (May 31, 2024), there was no change in Details that should bestated from Details as of the end of Current fiscal year, the description related to the end of the previous month of the filing date has been omitted.
(NOTE)1. Class of shares that is the object of Subscription rights to shares shall be our Common stock and the target Equity securities per Subscription rights to shares(hereinafter referred to as "Grant Equity securities") shall be 400 Shares.
In addition, in the event we conduct a Equity securities split or Equity securities reverse split of our Common stock after the allocation date of Subscription
rights to shares, Grant Equity securities count shall be adjusted according to the following formula, and fractions less than 1 Shares resulting from theadjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stock split
In addition, in the event of a merger, corporate split, Equity securities split, or Equity securities reverse split, or Other free allotment, or in the event Grant
Equity securities count needs to be adjusted accordingly, Grant Equity securities count shall be appropriately adjusted to the extent reasonable.
Provided, however, that adjustments in this paragraph shall be made only for Subscription rights to shares that are not Exercise of rights at that point in time
and that are the target Equity securities numbers.
2.The value of the assets to be contributed upon the exercise of Subscription rights to shares shall be The amount shall be 1 yen per share that can be delivered
upon exercise of the Stock Acquisition Rights and multiplied by the total number of Granted Shares..
3.① The amount of Capital stock to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be 1-half of the amount of
the limit of increase in Capital stock, etc. calculated in accordance with Article 17 I of the Company Accounting Rules, and any fraction less than 1 (1)yen resulting from the calculation shall be rounded up.
② The amount of Legal capital surplus to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be the amountobtained by subtracting the amount of Capital stock to be increased as set forth in ① above from the maximum amount of Capital stock to be increased as
set forth in ① above.
4.① Subscription rights to shares Person may exercise Subscription rights to shares allocated to the relevant Subsidiaries and associates after the day following thedate on which the relevant Subscription rights to shares Person lost any of the positions of Director and Executive Officers of our group (which means us
and our group. The same shall apply hereinafter).
② Notwithstanding the provisions of paragraph ① above, in the event the Subject Person to whom Subscription rights to shares has been allocated falls
under any of the following items, the Subject Person shall not be entitled to exercise his/her rights:
1. Failure to Exercise Rights during the Exercise Period
2. In the event of disciplinary punishment not less than suspension from work
3. In the event of the loss of either Director or Executive Officers status of our group due to the resignation of Within 1 year from the date of Subscription
rights to shares allocation for personal reasons (excluding retirement due to the expiration of Term of Office or retirement or retirement due to theconvenience of our group)
4. In the event that any of Director and Executive Officers status of our group is lost due to Ordinary General Meeting of Shareholders resolution or
dismissal or disciplinary action by Board of Directors resolution of our group, or that it is reasonably accepted that it is not appropriate to have our
Board of Directors exercise Subscription rights to shares
5. When the Subject Person requests to waive his/her rights- 61 -

③ In the event of the death of Subscription rights to shares, only 1 of the heirs to Subscription rights to shares (hereinafter referred to as the "heir") shall beentitled to exercise Subscription rights to shares in accordance with the terms set forth below. Provided, however, that a person who is deemed to havecommitted a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and no later than the last day ofthe exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
5.In the event of a merger (limited to the case where the merger is extinguished), an absorption-type demerger, an incorporation-type demerger (limited to the casewhere each of us becomes a split company), or a Equity securities transfer (limited to the case where each of us becomes a wholly-owned subsidiary)(hereinafter collectively referred to as "organizational restructuring"), the effective date of the merger (the date of incorporation of the Kabushiki-Kaisha whichis incorporated by consolidation with regard to the merger, the date of the absorption-type demerger, and the date of incorporation of the parent corporation
which is incorporated by transfer; and the date of incorporation of Equity securities transfer With respect to the rights to subscribe for new shares (hereinafterreferred to as the "remaining rights to subscribe for new shares") which exist immediately before the rights to subscribe for new shares (hereinafter referred to as
the "restructured company") as set forth in Article 236, Paragraph 1, Item (8) (a) through (e) of the Companies Act, the rights to subscribe for new shares shallbe delivered in accordance with the following conditions: In such cases, the remaining Subscription rights to shares shall be extinguished and Subscription
rights to shares of the Restructured Companies shall be newly delivered.
Provided, however, that this provision shall be limited to the cases where a merger contract, absorption-type demerger contract, incorporation-type demerger
plan, Equity securities replacement contract or Equity securities transfer plan stipulates that Subscription rights to shares of the Restructured Company shall bedelivered in accordance with the following terms:① Number of Subscription rights to shares of Reorganized Companies to be Delivered
Subscription rights to shares shall deliver the same number as the remaining number of Subscription rights to shares held by it.
② Class of shares and numbers of restructured companies subject to Subscription rights to sharesClass of shares that is the object of Subscription rights to shares shall be the restructured company Common stock, and the number of restructured
company Common stock to be delivered upon the exercise of Subscription rights to shares shall be determined in accordance with 1. above after taking into
consideration the terms of the restructuring and other factors.
③ Value of Property Contributed upon Exercise of Subscription rights to shares
The value of the assets to be contributed upon the exercise of Subscription rights to shares to be delivered shall be the amount obtained by multiplying thepost-realignment exercise price stipulated below by the number of Equity securities subject to the respective Subscription rights to shares. The exercise priceafter the reorganization shall be 1 yen as the amount of Equity securities 1 Shares Per share of the reorganized companies that can be delivered by exercising
the delivered Subscription rights to shares.
④ Matters pertaining to obtaining Subscription rights to shares
In the event that an Absorption-type Merger Agreement, an Incorporation-type Merger Agreement, an Absorption-type Company Split Agreement inwhich we become a splitting company, an Incorporation-type Company Split Plan, or an Equity securities Exchange Agreement or a Equity securities
Transfer Plan in which we become a wholly owned subsidiary is approved in our Ordinary General Meeting of Shareholders (our Board of Directors in theevent that the approval of Ordinary General Meeting of Shareholders is not required), a Subscription rights to shares that has not been Exercise of rights as ofthe same date may be acquired without charge as of the date separately determined by our Board of Directors.
⑤ Restrictions on Transfer of Subscription rights to shares
Acquisition of Subscription rights to shares by transfer shall be subject to the approval of the Board of Directors of the Restructured Company.
⑥ Matters relating to the increasing Capital stock and Legal capital surplus in cases where Equity securities is issued upon the exercise of Subscription rights tosharesDetermine in accordance with 3 above.

- 62 -

Re. 9th Subscription rights to shares (Class B Subscription rights to shares)
Resolution Date

July 13, 2020
Directors 7

Category and number of grantees (persons)Executive Officers 5

Number of Subscription rights to shares (units)*

299

Class of shares, Details and numbers (Shares) that are the objectives of Subscription
rights to shares *Common stock 119.6 thousand (NOTE)1

Payment amount at exercise of Subscription rights to shares (Yen) *400(NOTE) 2

Strike term of Subscription rights to shares *From August 2, 2020 to August 1, 2060

For shares issued upon the exercise of Subscription rights to shares

Issue price 91,600

Issue price and amount designated as capital (Yen) *Amount included in capital 45.8 thousand (NOTE)3

Terms of Exercise of Subscription rights to shares *(NOTE)4
Acquisition of Subscription rights to shares by assignment shall be approved by

Matters concerning transfer of Subscription rights to shares *the Board of Directors.

Issues related to the issuance of Subscription rights to shares associated with

(NOTE)5

reorganization activities*※ Details at the end of Current fiscal year (2024 March 31) is shown. As of the end of the previous month (May 31, 2024), there was no change in Details that should bestated from Details as of the end of Current fiscal year, the description related to the end of the previous month of the filing date has been omitted.
(NOTE)1. Class of shares that is the object of Subscription rights to shares shall be our Common stock and the target Equity securities per Subscription rights to shares(hereinafter referred to as "Grant Equity securities") shall be 400 Shares.
In addition, in the event we conduct a Equity securities split or Equity securities reverse split of our Common stock after the allocation date of Subscription
rights to shares, Grant Equity securities count shall be adjusted according to the following formula, and fractions less than 1 Shares resulting from theadjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stock split
In addition, in the event of a merger, corporate split, Equity securities split, or Equity securities reverse split, or Other free allotment, or in the event Grant
Equity securities count needs to be adjusted accordingly, Grant Equity securities count shall be appropriately adjusted to the extent reasonable.
Provided, however, that adjustments in this paragraph shall be made only for Subscription rights to shares that are not Exercise of rights at that point in time
and that are the target Equity securities numbers.
2.The value of the assets to be contributed upon the exercise of Subscription rights to shares shall be The amount shall be 1 yen per share that can be delivered
upon exercise of the Stock Acquisition Rights and multiplied by the total number of Granted Shares..
3.① The amount of Capital stock to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be 1-half of the amount of
the limit of increase in Capital stock, etc. calculated in accordance with Article 17 I of the Company Accounting Rules, and any fraction less than 1 (1)yen resulting from the calculation shall be rounded up.
② The amount of Legal capital surplus to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be the amountobtained by subtracting the amount of Capital stock to be increased as set forth in ① above from the maximum amount of Capital stock to be increased as
set forth in ① above.
4.① Subscription rights to shares Person may exercise Subscription rights to shares allocated to the relevant Subsidiaries and associates after the day following thedate on which the relevant Subscription rights to shares Person lost any of the positions of Director and Executive Officers of our group (which means us
and our group. The same shall apply hereinafter).
② Notwithstanding the provisions of paragraph ① above, in the event the Subject Person to whom Subscription rights to shares has been allocated falls
under any of the following items, the Subject Person shall not be entitled to exercise his/her rights:
1. Failure to Exercise Rights during the Exercise Period
2. In the event of disciplinary punishment not less than suspension from work
3. In the event of the loss of either Director or Executive Officers status of our group due to the resignation of Within 1 year from the date of Subscription
rights to shares allocation for personal reasons (excluding retirement due to the expiration of Term of Office or retirement or retirement due to theconvenience of our group)
4. In the event that any of Director and Executive Officers status of our group is lost due to Ordinary General Meeting of Shareholders resolution or
dismissal or disciplinary action by Board of Directors resolution of our group, or that it is reasonably accepted that it is not appropriate to have our
Board of Directors exercise Subscription rights to shares
5. When the Subject Person requests to waive his/her rights- 63 -

③ In the event of the death of Subscription rights to shares, only 1 of the heirs to Subscription rights to shares (hereinafter referred to as the "heir") shall beentitled to exercise Subscription rights to shares in accordance with the terms set forth below. Provided, however, that a person who is deemed to havecommitted a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and no later than the last day ofthe exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
5.In the event of a merger (limited to the case where the merger is extinguished), an absorption-type demerger, an incorporation-type demerger (limited to the casewhere each of us becomes a split company), or a Equity securities transfer (limited to the case where each of us becomes a wholly-owned subsidiary)(hereinafter collectively referred to as "organizational restructuring"), the effective date of the merger (the date of incorporation of the Kabushiki-Kaisha whichis incorporated by consolidation with regard to the merger, the date of the absorption-type demerger, and the date of incorporation of the parent corporation
which is incorporated by transfer; and the date of incorporation of Equity securities transfer With respect to the rights to subscribe for new shares (hereinafterreferred to as the "remaining rights to subscribe for new shares") which exist immediately before the rights to subscribe for new shares (hereinafter referred to as
the "restructured company") as set forth in Article 236, Paragraph 1, Item (8) (a) through (e) of the Companies Act, the rights to subscribe for new shares shallbe delivered in accordance with the following conditions: In such cases, the remaining Subscription rights to shares shall be extinguished and Subscription
rights to shares of the Restructured Companies shall be newly delivered.
Provided, however, that this provision shall be limited to the cases where a merger contract, absorption-type demerger contract, incorporation-type demerger
plan, Equity securities replacement contract or Equity securities transfer plan stipulates that Subscription rights to shares of the Restructured Company shall bedelivered in accordance with the following terms:① Number of Subscription rights to shares of Reorganized Companies to be Delivered
Subscription rights to shares shall deliver the same number as the remaining number of Subscription rights to shares held by it.
② Class of shares and numbers of restructured companies subject to Subscription rights to sharesClass of shares that is the object of Subscription rights to shares shall be the restructured company Common stock, and the number of restructured
company Common stock to be delivered upon the exercise of Subscription rights to shares shall be determined in accordance with 1. above after taking into
consideration the terms of the restructuring and other factors.
③ Value of Property Contributed upon Exercise of Subscription rights to shares
The value of the assets to be contributed upon the exercise of Subscription rights to shares to be delivered shall be the amount obtained by multiplying thepost-realignment exercise price stipulated below by the number of Equity securities subject to the respective Subscription rights to shares. The exercise priceafter the reorganization shall be 1 yen as the amount of Equity securities 1 Shares Per share of the reorganized companies that can be delivered by exercising
the delivered Subscription rights to shares.
④ Matters pertaining to obtaining Subscription rights to shares
In the event that an Absorption-type Merger Agreement, an Incorporation-type Merger Agreement, an Absorption-type Company Split Agreement inwhich we become a splitting company, an Incorporation-type Company Split Plan, or an Equity securities Exchange Agreement or a Equity securities
Transfer Plan in which we become a wholly owned subsidiary is approved in our Ordinary General Meeting of Shareholders (our Board of Directors in theevent that the approval of Ordinary General Meeting of Shareholders is not required), a Subscription rights to shares that has not been Exercise of rights as ofthe same date may be acquired without charge as of the date separately determined by our Board of Directors.
⑤ Restrictions on Transfer of Subscription rights to shares
Acquisition of Subscription rights to shares by transfer shall be subject to the approval of the Board of Directors of the Restructured Company.
⑥ Matters relating to the increasing Capital stock and Legal capital surplus in cases where Equity securities is issued upon the exercise of Subscription rights tosharesDetermine in accordance with 3 above.

- 64 -

N. 10th Subscription rights to shares (Class B Subscription rights to shares)
Resolution Date

July 12, 2021
Directors 7

Category and number of grantees (persons)

Our Executive Officers 4

Number of Subscription rights to shares (units)*

1,352

Class of shares, Details and numbers (Shares) that are the objectives of Subscription
rights to shares *Common stock 135.2 thousand (NOTE)1

Payment amount at exercise of Subscription rights to shares (Yen) *100(NOTE) 2

Strike term of Subscription rights to shares *From August 1, 2021 to July 31, 2061

For shares issued upon the exercise of Subscription rights to shares

Issue price 24,200

Issue price and amount designated as capital (Yen) *Amount included in capital 12.1 thousand (NOTE)3

Terms of Exercise of Subscription rights to shares *(NOTE)4
Acquisition of Subscription rights to shares by assignment shall be approved by

Matters concerning transfer of Subscription rights to shares *the Board of Directors.

Issues related to the issuance of Subscription rights to shares associated with

(NOTE)5

reorganization activities*※ Details at the end of Current fiscal year (2024 March 31) is shown. As of the end of the previous month (May 31, 2024), there was no change in Details that should bestated from Details as of the end of Current fiscal year, the description related to the end of the previous month of the filing date has been omitted.
(NOTE)1. Class of shares that is the object of Subscription rights to shares shall be our Common stock and the target Equity securities per Subscription rights to shares(hereinafter referred to as "Grant Equity securities") shall be 100 Shares.
In addition, in the event we conduct a Equity securities split or Equity securities reverse split of our Common stock after the allocation date of Subscription
rights to shares, Grant Equity securities count shall be adjusted according to the following formula, and fractions less than 1 Shares resulting from theadjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stock split
In addition, in the event of a merger, company split, Equity securities split, or Equity securities reverse split, or Other free allotment, or in the event Grant
Equity securities count needs to be adjusted accordingly, Grant Equity securities count shall be appropriately adjusted to the extent reasonable.
Provided, however, that adjustments in this paragraph shall be made only for Subscription rights to shares that are not Exercise of rights at that point in time
and that are the target Equity securities numbers.
2.The value of the assets to be contributed upon the exercise of Subscription rights to shares shall be The amount shall be 1 yen per share that can be delivered
upon exercise of the Stock Acquisition Rights and multiplied by the total number of Granted Shares..
3.① The amount of Capital stock to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be 1-half of the amount of
the limit of increase in Capital stock, etc. calculated in accordance with Article 17 I of the Company Accounting Rules, and any fraction less than 1 (1)yen resulting from the calculation shall be rounded up.
② The amount of Legal capital surplus to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be the amountobtained by subtracting the amount of Capital stock to be increased as set forth in ① above from the maximum amount of Capital stock to be increased as
set forth in ① above.
4.① Subscription rights to shares Person may exercise Subscription rights to shares allocated to the relevant Subsidiaries and associates after the day following thedate on which the relevant Subscription rights to shares Person lost any of the positions of Director and Executive Officers of our group (which means us
and our group. The same shall apply hereinafter).
② Notwithstanding the provisions of paragraph ① above, in the event the Subject Person to whom Subscription rights to shares has been allocated falls
under any of the following items, the Subject Person shall not be entitled to exercise his/her rights:
1. Failure to Exercise Rights during the Exercise Period
2. In the event of disciplinary punishment not less than suspension from work
3. In the event of the loss of either Director or Executive Officers status of our group from the date of Subscription rights to shares allocation due toWithin 1 year's resignation at its own discretion, etc. (excluding retirement due to the expiration of Term of Office and retirement or retirement due tothe convenience of our group)
4. In the event that any of Director and Executive Officers status of our group is lost due to Ordinary General Meeting of Shareholders resolution or
dismissal or disciplinary action by Board of Directors resolution of our group, or that it is reasonably accepted that it is not appropriate to have our
Board of Directors exercise Subscription rights to shares
5. When the Subject Person requests to waive his/her rights- 65 -

③ In the event of the death of Subscription rights to shares, only 1 of the heirs to Subscription rights to shares (hereinafter referred to as the "heir") shall beentitled to exercise Subscription rights to shares in accordance with the terms set forth below. Provided, however, that a person who is deemed to havecommitted a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and no later than the last day ofthe exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
5.In the event of a merger (limited to the case where the merger is extinguished), an absorption-type demerger, an incorporation-type demerger (limited to the casewhere each of us becomes a split company), or a Equity securities transfer (limited to the case where each of us becomes a wholly-owned subsidiary)(hereinafter collectively referred to as "organizational restructuring"), the effective date of the merger (the date of incorporation of the Kabushiki-Kaisha whichis incorporated by consolidation with regard to the merger, the date of the absorption-type demerger, and the date of incorporation of the parent corporation
which is incorporated by transfer; and the date of incorporation of Equity securities transfer With respect to the rights to subscribe for new shares (hereinafterreferred to as the "remaining rights to subscribe for new shares") which exist immediately before the rights to subscribe for new shares (hereinafter referred to as
the "restructured company") as set forth in Article 236, Paragraph 1, Item (8) (a) through (e) of the Companies Act, the rights to subscribe for new shares shallbe delivered in accordance with the following conditions: In such cases, the remaining Subscription rights to shares shall be extinguished and Subscription
rights to shares of the Restructured Companies shall be newly delivered.
Provided, however, that this provision shall be limited to the cases where a merger contract, absorption-type demerger contract, incorporation-type demerger
plan, Equity securities replacement contract or Equity securities transfer plan stipulates that Subscription rights to shares of the Restructured Company shall bedelivered in accordance with the following terms:① Number of Subscription rights to shares of Reorganized Companies to be Delivered
Subscription rights to shares shall deliver the same number as the remaining number of Subscription rights to shares held by it.
② Class of shares and numbers of restructured companies subject to Subscription rights to sharesClass of shares that is the object of Subscription rights to shares shall be the restructured company Common stock, and the number of restructured
company Common stock to be delivered upon the exercise of Subscription rights to shares shall be determined in accordance with 1. above after taking into
consideration the terms of the restructuring and other factors.
③ Value of Property Contributed upon Exercise of Subscription rights to shares
The value of the assets to be contributed upon the exercise of Subscription rights to shares to be delivered shall be the amount obtained by multiplying thepost-realignment exercise price stipulated below by the number of Equity securities subject to the respective Subscription rights to shares. The exercise priceafter the reorganization shall be 1 yen as the amount of Equity securities 1 Shares Per share of the reorganized companies that can be delivered by exercising
the delivered Subscription rights to shares.
④ Matters pertaining to obtaining Subscription rights to shares
In the event that an Absorption-type Merger Agreement, an Incorporation-type Merger Agreement, an Absorption-type Company Split Agreement inwhich we become a splitting company, an Incorporation-type Company Split Plan, or an Equity securities Exchange Agreement or a Equity securities
Transfer Plan in which we become a wholly owned subsidiary is approved in our Ordinary General Meeting of Shareholders (our Board of Directors in theevent that the approval of Ordinary General Meeting of Shareholders is not required), a Subscription rights to shares that has not been Exercise of rights as ofthe same date may be acquired without charge as of the date separately determined by our Board of Directors.
⑤ Restrictions on Transfer of Subscription rights to shares
Acquisition of Subscription rights to shares by transfer shall be subject to the approval of the Board of Directors of the Restructured Company.
⑥ Matters relating to the increasing Capital stock and Legal capital surplus in cases where Equity securities is issued upon the exercise of Subscription rights tosharesDetermine in accordance with 3 above.

- 66 -

Le. 11th Subscription rights to shares (Class B Subscription rights to shares)
Resolution Date

July 29, 2022
Directors 7

Category and number of grantees (persons)Executive Officer 7

Number of Subscription rights to shares (units)*

1,637

Class of shares, Details and numbers (Shares) that are the objectives of Subscription
rights to shares *Common stock 163.7 thousand (NOTE)1

Payment amount at exercise of Subscription rights to shares (Yen) *100(NOTE) 2

Strike term of Subscription rights to shares *From August 24, 2022 to August 23, 2062

For shares issued upon the exercise of Subscription rights to shares

Issue price 26,200

Issue price and amount designated as capital (Yen) *Amount included in capital 13.1 thousand (NOTE)3

Terms of Exercise of Subscription rights to shares *(NOTE)4
Acquisition of Subscription rights to shares by assignment shall be approved by

Matters concerning transfer of Subscription rights to shares *the Board of Directors.

Issues related to the issuance of Subscription rights to shares associated with

(NOTE)5

reorganization activities*※ Details at the end of Current fiscal year (2024 March 31) is shown. As of the end of the previous month (May 31, 2024), there was no change in Details that should bestated from Details as of the end of Current fiscal year, the description related to the end of the previous month of the filing date has been omitted.
(NOTE)1. Class of shares that is the object of Subscription rights to shares shall be our Common stock and the target Equity securities per Subscription rights to shares(hereinafter referred to as "Grant Equity securities") shall be 100 Shares.
In addition, in the event we conduct a Equity securities split or Equity securities reverse split of our Common stock after the allocation date of Subscription
rights to shares, Grant Equity securities count shall be adjusted according to the following formula, and fractions less than 1 Shares resulting from theadjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stock split
In addition, in the event of a merger, company split, Equity securities split, or Equity securities reverse split, or Other free allotment, or in the event Grant
Equity securities count needs to be adjusted accordingly, Grant Equity securities count shall be appropriately adjusted to the extent reasonable.
Provided, however, that adjustments in this paragraph shall be made only for Subscription rights to shares that are not Exercise of rights at that point in time
and that are the target Equity securities numbers.
2.The value of the assets to be contributed upon the exercise of Subscription rights to shares shall be The amount shall be 1 yen per share that can be delivered
upon exercise of the Stock Acquisition Rights and multiplied by the total number of Granted Shares..
3.① The amount of Capital stock to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be 1-half of the amount of
the limit of increase in Capital stock, etc. calculated in accordance with Article 17 I of the Company Accounting Rules, and any fraction less than 1 (1)yen resulting from the calculation shall be rounded up.
② The amount of Legal capital surplus to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be the amountobtained by subtracting the amount of Capital stock to be increased as set forth in ① above from the maximum amount of Capital stock to be increased as
set forth in ① above.
4.① Subscription rights to shares Person may exercise Subscription rights to shares allocated to the relevant Subsidiaries and associates after the day following thedate on which the relevant Subscription rights to shares Person lost any of the positions of Director and Executive Officers of our group (which means us
and our group. The same shall apply hereinafter).
② Notwithstanding the provisions of paragraph ① above, in the event the Subject Person to whom Subscription rights to shares has been allocated falls
under any of the following items, the Subject Person shall not be entitled to exercise his/her rights:
1. Failure to Exercise Rights during the Exercise Period
2. In the event of disciplinary punishment not less than suspension from work
3. In the event of the loss of either Director or Executive Officers status of our group from the date of Subscription rights to shares allocation due toWithin 1 year's resignation at its own discretion, etc. (excluding retirement due to the expiration of Term of Office and retirement or retirement due tothe convenience of our group)
4. In the event that any of Director and Executive Officers status of our group is lost due to Ordinary General Meeting of Shareholders resolution or
dismissal or disciplinary action by Board of Directors resolution of our group, or that it is reasonably accepted that it is not appropriate to have our
Board of Directors exercise Subscription rights to shares
5. When the Subject Person requests to waive his/her rights- 67 -

③ In the event of the death of Subscription rights to shares, only 1 of the heirs to Subscription rights to shares (hereinafter referred to as the "heir") shall beentitled to exercise Subscription rights to shares in accordance with the terms set forth below. Provided, however, that a person who is deemed to havecommitted a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and no later than the last day ofthe exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
5.In the event of a merger (limited to the case where the merger is extinguished), an absorption-type demerger, an incorporation-type demerger (limited to the casewhere each of us becomes a split company), or a Equity securities transfer (limited to the case where each of us becomes a wholly-owned subsidiary)(hereinafter collectively referred to as "organizational restructuring"), the effective date of the merger (the date of incorporation of the Kabushiki-Kaisha whichis incorporated by consolidation with regard to the merger, the date of the absorption-type demerger, and the date of incorporation of the parent corporation
which is incorporated by transfer; and the date of incorporation of Equity securities transfer With respect to the rights to subscribe for new shares (hereinafterreferred to as the "remaining rights to subscribe for new shares") which exist immediately before the rights to subscribe for new shares (hereinafter referred to as
the "restructured company") as set forth in Article 236, Paragraph 1, Item (8) (a) through (e) of the Companies Act, the rights to subscribe for new shares shallbe delivered in accordance with the following conditions: In such cases, the remaining Subscription rights to shares shall be extinguished and Subscription
rights to shares of the Restructured Companies shall be newly delivered.
Provided, however, that this provision shall be limited to the cases where a merger contract, absorption-type demerger contract, incorporation-type demerger
plan, Equity securities replacement contract or Equity securities transfer plan stipulates that Subscription rights to shares of the Restructured Company shall bedelivered in accordance with the following terms:① Number of Subscription rights to shares of Reorganized Companies to be Delivered
Subscription rights to shares shall deliver the same number as the remaining number of Subscription rights to shares held by it.
② Class of shares and numbers of restructured companies subject to Subscription rights to sharesClass of shares that is the object of Subscription rights to shares shall be the restructured company Common stock, and the number of restructured
company Common stock to be delivered upon the exercise of Subscription rights to shares shall be determined in accordance with 1. above after taking into
consideration the terms of the restructuring and other factors.
③ Value of Property Contributed upon Exercise of Subscription rights to shares
The value of the assets to be contributed upon the exercise of Subscription rights to shares to be delivered shall be the amount obtained by multiplying thepost-realignment exercise price stipulated below by the number of Equity securities subject to the respective Subscription rights to shares. The exercise priceafter the reorganization shall be 1 yen as the amount of Equity securities 1 Shares Per share of the reorganized companies that can be delivered by exercising
the delivered Subscription rights to shares.
④ Matters pertaining to obtaining Subscription rights to shares
In the event that an Absorption-type Merger Agreement, an Incorporation-type Merger Agreement, an Absorption-type Company Split Agreement inwhich we become a splitting company, an Incorporation-type Company Split Plan, or an Equity securities Exchange Agreement or a Equity securities
Transfer Plan in which we become a wholly owned subsidiary is approved in our Ordinary General Meeting of Shareholders (our Board of Directors in theevent that the approval of Ordinary General Meeting of Shareholders is not required), a Subscription rights to shares that has not been Exercise of rights as ofthe same date may be acquired without charge as of the date separately determined by our Board of Directors.
⑤ Restrictions on Transfer of Subscription rights to shares
Acquisition of Subscription rights to shares by transfer shall be subject to the approval of the Board of Directors of the Restructured Company.
⑥ Matters relating to the increasing Capital stock and Legal capital surplus in cases where Equity securities is issued upon the exercise of Subscription rights tosharesDetermine in accordance with 3 above.

- 68 -

(o) 12th Subscription rights to shares (Class B Subscription rights to shares)
Resolution Date

July 3, 2023
Our Director 2

Category and number of grantees (persons)Subsidiary Director 6
Subsidiary Executive Officers 9[8]Number of Subscription rights to shares (units)*

1,767[1,708]

Class of shares, Details and numbers (Shares) that are the objectives ofCommon stock 176.7 thousand[170.8 thousand] (NOTE)1

Subscription rights to shares *Payment amount at exercise of Subscription rights to shares (Yen) *100(NOTE) 2

Strike term of Subscription rights to shares *From August 2, 2023 to August 1, 2063

Issue price of shares issued upon exercise of Subscription rights to shares andIssue price 32,100

amount capitalized (Yen) *Capital-capitalized amount 16,050 (NOTE)3

Terms of Exercise of Subscription rights to shares *(NOTE)4
Acquisition of Subscription rights to shares by assignment shall be approved

Matters concerning transfer of Subscription rights to shares *by the Board of Directors.

Issues related to the issuance of Subscription rights to shares associated with

(NOTE)5

reorganization activities*※ Details at the end of Current fiscal year (2024 March 31) is shown. Regarding matters that have changed from the last day of Current fiscal year to the end of theprevious month (May 31, 2024), Details as of the end of the previous month as of the filing date is shown in [], and there is no change from Details as of the end of
Current fiscal year for For Other matters.
(NOTE)1. Class of shares that is the object of Subscription rights to shares shall be our Common stock and the target Equity securities per Subscription rights to shares(hereinafter referred to as "Grant Equity securities") shall be 100 Shares.
In addition, in the event we conduct a Equity securities split or Equity securities reverse split of our Common stock after the allocation date of
Subscription rights to shares, Grant Equity securities count shall be adjusted according to the following formula, and fractions less than 1 Shares resulting
from the adjustment shall be discarded.
Number of shares granted after adjustment = Number of shares granted before adjustment × Ratio of stock split or reverse stock split
In addition, in the event of a merger, company split, Equity securities split, or Equity securities reverse split, or Other free allotment, or in the event Grant
Equity securities count needs to be adjusted accordingly, Grant Equity securities count shall be appropriately adjusted to the extent reasonable.
Provided, however, that adjustments in this paragraph shall be made only for Subscription rights to shares that are not Exercise of rights at that point intime and that are the target Equity securities numbers.
2. The value of the assets to be contributed upon the exercise of Subscription rights to shares shall be The amount shall be 1 yen per share that can be delivered
upon exercise of the Stock Acquisition Rights and multiplied by the total number of Granted Shares..
3.① The amount of Capital stock to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be 1-half of the amount of
the limit of increase in Capital stock, etc. calculated in accordance with Article 17 I of the Company Accounting Rules, and any fraction less than 1 ①
yen resulting from the calculation shall be rounded up.
②The amount of Legal capital surplus to be increased when issuing Equity securities upon the exercise of Subscription rights to shares shall be the amountobtained by subtracting the amount of Capital stock to be increased as set forth in ① above from the maximum amount of Capital stock to be increased as
set forth in ① above.
4.① Subscription rights to shares Person may exercise Subscription rights to shares allocated to the relevant Subsidiaries and associates after the day following thedate on which the relevant Subscription rights to shares Person lost any of the positions of Director and Executive Officers of our group (which means us
and our group. The same shall apply hereinafter).
②Notwithstanding the provisions of paragraph ① above, in the event the Subject Person to whom Subscription rights to shares has been allocated falls
under any of the following items, the Subject Person shall not be entitled to exercise his/her rights:
1. Failure to Exercise Rights during the Exercise Period
2. In the event of disciplinary punishment not less than suspension from work
3. In the event of the loss of either Director or Executive Officers status of our group from the date of Subscription rights to shares allocation due toWithin 1 year's resignation at its own discretion, etc. (excluding retirement due to the expiration of Term of Office and retirement or retirement due tothe convenience of our group)
4. In the event that any of Director and Executive Officers status of our group is lost due to Ordinary General Meeting of Shareholders resolution or
dismissal or disciplinary action by Board of Directors resolution of our group, or that it is reasonably accepted that it is not appropriate to have our
Board of Directors exercise Subscription rights to shares- 69 -

5. When the Subject Person requests to waive his/her rights- 70 -

③In the event of the death of Subscription rights to shares, only 1 of the heirs to Subscription rights to shares (hereinafter referred to as the "heir") shall beentitled to exercise Subscription rights to shares in accordance with the terms set forth below. Provided, however, that a person who is deemed to havecommitted a serious crime among penal code offenses may not be an heir.
1. If an heir dies, his/her heir may not inherit the rights to subscribe for new shares.
2. Successors must complete our prescribed inheritance procedure within 10 months of the commencement of inheritance and no later than the last day ofthe exercise period.
3. Successors may exercise their share warrants only within 2 months of the completion of our prescribed inheritance procedure.
5. In the event of a merger (limited to the case where the merger is extinguished), an absorption-type demerger, an incorporation-type demerger (limited to the casewhere each of us becomes a split company), or a Equity securities transfer (limited to the case where each of us becomes a wholly-owned subsidiary)(hereinafter collectively referred to as "organizational restructuring"), the effective date of the merger (the date of incorporation of the Kabushiki-Kaisha
which is incorporated by consolidation with regard to the merger, the date of the absorption-type demerger, and the date of incorporation of the parent
corporation which is incorporated by transfer; and the date of incorporation of Equity securities transfer With respect to the rights to subscribe for new shares(hereinafter referred to as the "remaining rights to subscribe for new shares") which exist immediately before the rights to subscribe for new shares(hereinafter referred to as the "restructured company") as set forth in Article 236, Paragraph 1, Item (8) (a) through (e) of the Companies Act, the rights to
subscribe for new shares shall be delivered in accordance with the following conditions: In such cases, the remaining Subscription rights to shares shall be
extinguished and Subscription rights to shares of the Restructured Companies shall be newly delivered.
Provided, however, that this provision shall be limited to the cases where a merger contract, absorption-type demerger contract, incorporation-typedemerger plan, Equity securities replacement contract or Equity securities transfer plan stipulates that Subscription rights to shares of the Restructured
Company shall be delivered in accordance with the following terms:①Number of Subscription rights to shares of Reorganized Companies to be Delivered
Subscription rights to shares shall deliver the same number as the remaining number of Subscription rights to shares held by it.
②Class of shares and numbers of restructured companies subject to Subscription rights to sharesClass of shares that is the object of Subscription rights to shares shall be the restructured company Common stock, and the number of restructured
company Common stock to be delivered upon the exercise of Subscription rights to shares shall be determined in accordance with 1. above after taking into
consideration the terms of the restructuring and other factors.
③Value of Property Contributed upon Exercise of Subscription rights to shares
The value of the assets to be contributed upon the exercise of Subscription rights to shares to be delivered shall be the amount obtained by multiplying thepost-realignment exercise price stipulated below by the number of Equity securities subject to the respective Subscription rights to shares. The exercise priceafter the reorganization shall be 1 yen as the amount of Equity securities 1 Shares Per share of the reorganized companies that can be delivered by exercising
the delivered Subscription rights to shares.
④Matters pertaining to obtaining Subscription rights to shares
In the event that an Absorption-type Merger Agreement, an Incorporation-type Merger Agreement, an Absorption-type Company Split Agreement inwhich we become a splitting company, an Incorporation-type Company Split Plan, or an Equity securities Exchange Agreement or a Equity securities
Transfer Plan in which we become a wholly owned subsidiary is approved in our Ordinary General Meeting of Shareholders (our Board of Directors in theevent that the approval of Ordinary General Meeting of Shareholders is not required), a Subscription rights to shares that has not been Exercise of rights as ofthe same date may be acquired without charge as of the date separately determined by our Board of Directors.
⑤Restrictions on Transfer of Subscription rights to shares
Acquisition of Subscription rights to shares by transfer shall be subject to the approval of the Board of Directors of the Restructured Company.
⑥Matters relating to the increasing Capital stock and Legal capital surplus in cases where Equity securities is issued upon the exercise of Subscription rights
to shares
Determine in accordance with 3 above.
②[Details of rights plan]
Not applicable.
③[Status of For Other Subscription rights to shares]
Not applicable.
(3)[Exercise Status of Corporate Bonds with Subscription rights to shares with Exercise Price Adjustment Clause]
Not applicable.

- 71 -

(4)[Trends in Number of issued shares and Capital stock]
Issued shares
Total number
increase/decrease(Shares)

Date

March 22, 2019

△3,000,000(NOTE)1

Issued shares
Total balance(Shares)

Change in capitalstock (Millions ofyen)

Balance of capitalstock (Millions of
yen)

-

4,819

121,000,000

Legal capitalsurplus
Change(Millions of yen)

Legal capitalsurplus
Balance(Millions of yen)

-

4,817

(NOTE)1. Decreased due to cancellation of Treasury stock.
2.Subsequent to the closing date, Number of issued shares increased by 16 million Shares, Capital stock and Legal capital surplus by 3512 Millions of yen eachdue to a capital increase through a public offering with a payment date of June 4, 2024.
(5)[Breakdown of Shareholders]
As of March 31 2024
Status of shares (100 Shares per unit)
Category

Number of shareholders
Number of shares held
(unit)
Percentage (%) of shares
held

Government
andMunicipalitiesFinancial
institutions

Financial
instruments
firms

Other
Corporation

-

23

29

-

178,873-

14.79

Foreign Juridical Person,
etc.

Individuals
Other

Shares lessthan 1 unit
Status(Shares)

Total

Other than
individuals

Individuals

227

109

194

53,40453,986-53,036

321,036

140,699

1,047

514,473

1,209,164

83,600

4.39

26.55

11.63

0.09

42.55

100

-

(NOTE)1. 10,902,707 Shares of Treasury stock is included in 109,027 units under Individuals Other and 7 Shares under Shares less than 1 unit.
2.The "Other Corporation" column includes 16 units of Equity securities in the name of the JASDEC.

- 72 -

(6)[for trust account]
As of March 31 2024
Number of shares
held(Thousands ofShares)Percentage of the number ofshares held to the total
number of issued shares(excluding Treasury stock)(%)

2-12-4, Nagatacho, Chiyoda-ku, Tokyo

25,63323.28

The Master Trust Bank of Japan, Ltd. (Trust account)

Akasaka 1-8-1, Minato-ku, Tokyo

11,141

10.12

Custody Bank of Japan, Ltd. (Trust account)

1-8-12, Harumi, Chuo-ku, Tokyo

2,975

2.70

Morgan Stanley MUFG Securities, Co., Ltd.

1-9-7, Otemachi, Chiyoda-ku, Tokyo

2,163

1.97

Murayama Kikaku Co., Ltd.

4-33-10, Narimasu, Itabashi-ku Tokyo

2,000

1.82

RUDEN HOLDINGS Co., Ltd.

20-1, Sakuragaoka-cho, Shibuya-ku, Tokyo

1,724

1.57

JPMorgan Securities Japan Co., Ltd.

Marunouchi, Chiyoda-ku, Tokyo 2-chord 7th No. 3

1,527

1.39

1-8-2, Marunouchi, Chiyoda-ku, Tokyo

1,452

1.32

1-1-2, Marunouchi, Chiyoda-ku, Tokyo

1,184

1.08

1,175

1.07

50,977

46.30

Name / Company Name

General Incorporated Association Murayama AssetManagement

MIRARTH Holdings Business Partner Shareholding
Association
Sumitomo Mitsui Banking Corporation

Address

PALISADES WEST 6300,BEE CAVE ROADDFA INTL SMALL CAP VALUE PORTFOLIO(Standing proxy: Citibank, N.A. Tokyo Branch)

BUILDING ONE AUSTIN TX 78746 US(6-27-30, Shinjuku, Shinjuku-ku, Tokyo)

Total

-

(NOTE)1. Of The Master Trust Bank of Japan, Ltd. (Trust account)'s Number of shares held, there are 11,141,000 Shares of Equity securities in the trust business.
2.Of Custody Bank of Japan, Ltd. (Trust account)'s Number of shares held, there are 2,975,000 Shares of Equity securities in the trust business.

- 73 -

(7)[Status of voting rights]①[Issued shares]
As of March 31 2024
Category

Number of voting rights(units)Number of shares (shares)

Shares without voting rights

-

-

-

-

-

-

-

-

-

10,902,700-

The number of shares constituting 1 unit is 100
shares, which is the standard for us with nolimitation on the content of rights.

110,013,700

1,100,137

83,600-121,000,000

-

-

-

1,100,137-

Shares with limited voting rights (including
treasury shares)
Shares with restricted voting rights (other than
the above)
Shares with full voting rights (including

Commonstock

treasury shares)
Shares with full voting rights (other than the

Commonstock

above)

CommonShares less than 1 unit

stock

Number of issued shares

Details

Voting rights of all shareholders

Same as above
Shares less than 1 unit (100 shares)(NOTE)The column "Shares with full voting rights (other than the above)" includes 1,600 Shares of Equity securities in the name of the JASDEC. In addition, the"Number of voting rights" column includes 16 voting rights of shares with full voting rights held under the name of Japan Securities Depository Center, Inc.
②[Treasury stock, etc.]
As of March 31 2024
Owner's Name Title
Or its name
MIRARTH HOLDINGS,
Inc.

Address of shareholder

Own name
Name of another person
Number of Shares Owned Number of Shares Owned(Shares)(Shares)

Total number ofshares held
(shares)

To Number of issued shares
Number of shares held for
Percentage (%) for

Chiyoda-ku, Tokyo
Marunouchi 1-chome No. 8-2

10,902,700-

10,902,700

9.01

-

10,902,700-

10,902,700

9.01

Total

2[Acquisitions of Treasury stock][Class of shares, etc.] Common stock(1)[Acquisitions by resolution of Ordinary General Meeting of Shareholders]
Not applicable.
(2)[Status of Acquisitions by Board of Directors resolution]
Not applicable.
(3)[Details of items not based on Ordinary General Meeting of Shareholders resolution or Board of Directors resolution]
Not applicable.
(4)[Processing and holding status of acquired Treasury stock]
Current fiscal year
Category

Total value disposed(Yen)

Shares (Shares)
Acquisition for which subscribers were solicited: Treasury

Current term
Total value disposed(Yen)

Shares (Shares)

-

-

-

-

Acquired Treasury stock disposed of by retirement

-

-

-

-

Acquired Treasury stock with respect to mergers, shareexchanges, share grants, and corporate splits

-

-

-

-

289,900

108,132,700

5,900

2,200,700

10,902,707-

10,896,807

-

stock

Other
(Exercise of Subscription rights to shares Rights)
Treasury stock held

(NOTE)Treasury stock held in Current term does not include Equity securities acquired or processed between June 1, 2024 and Securities Report Statement filing date(June 26, 2024).

- 74 -

3[Dividend Policy]
Returning profits to Profit is 1 of the Company's most Important issue, and the Company's basic Policy is to pay stable and continuous dividends in line withbusiness performance, while securing sufficient retained earnings to develop its business and strengthen its management base.
In addition, our basic policy is to pay dividends from surplus twice a year, consisting of interim dividends and Term end dividends.
The decision-making body for the dividend of these surpluses is Ordinary General Meeting of Shareholders for Term end dividends and Board of Directors forinterim dividends.
We have stipulated in the Articles of Incorporation that "we may pay interim dividends on September 30 of each year as Record Date by resolution of Board of
Directors."
In addition, we have established the Articles of Incorporation to the effect that "the matters set forth in each item of Article 459 I of Dividend of surplus andOther Companies Act may be determined by a resolution of Board of Directors unless otherwise provided by laws and regulations." In Current fiscal year, Termend dividends were determined by a resolution of Ordinary General Meeting of Shareholders.
In the fiscal year under review, we plan to pay dividends that balance internal reserves for future growth, while building a structure that can weather changes inthe external environment with our own company strength.
Dividends of retained earnings related to the current fiscal year are as follows.
Resolution Date
October 30, 2023
Board of Directors resolution

Total dividends (Millions of yen)

Per share dividends (yen)

659

6.0

1,981

18.0

June 26, 2024
Annual Shareholders' Meeting
resolution- 75 -

4[Status of Corporate Governance](1)[Overview of Corporate Governance]① Basic Approach to Corporate GovernanceWe regard "To design sustainable environments for a happier future for both people and our planet." as a "Our Purpose" and recognize that addressing
Sustainability issues is a critical management issue. Accordingly, we will not merely pursue Profit, but also comply with laws and corporate ethics. We will
fulfill our social responsibilities as a member of the corporate society, and aim to sustainably increase our corporate value.
To this end, our Group's basic approach to corporate governance is to constantly consider the happiness of all stakeholders, including customers, employees,
business partners, local communities, and shareholders, and to make swift decisions in order to respond flexibly to changes in the business environment. At
the same time, we promote sound corporate activities through thorough compliance and ensure transparency in decision-making.
② Overview of Corporate Governance Structure and Reasons for adopting this system
a. Overview of Corporate Governance Structure
In order to ensure appropriate Supervise and Audit in the execution of business, we have adopted a system that clarifies Supervise's responsibilities for
Board of Directors's Supervise and Audit's Audit system, and a Executive Officers system to clarify Director's management Supervise and Audit's
responsibilities for business execution.
(Board of Directors)
Board of Directors is authorized to implement the following key roles and responsibilities: "to show the major direction of corporate strategy, etc.," "todevelop an environment that supports appropriate risk-taking by senior management," and "to conduct highly effective Supervise of management and Director
from an independent and objective standpoint." Director is currently 7 members including 4 Outside Director, and is chaired by Representative Director
Kazuichi Shimada. Director Daisuke Nakamura, Shoichi Akisawa, Outside Director Keiko Yamahira, Naohito Yamagishi, Kaname Uchida, and Yuko
Kanamaru. In principle, Board of Directors is held at the frequency of monthly Once and extraordinary Board of Directors is held as needed to make careful
and prompt decisions. The Directors monitor each other’s performance of their duties.
Attendance Status of Director to Board of Directors in Fiscal Year 2023 is as follows:

Attendance Status
Title

Name Title
Board of Directors

Representative Director

Kazuichi Shimada

16 times/16 times (100%)

Director

Masashi Yamamoto

16 times/16 times (100%)

Outside Director

Kenji Kawada

16 times/16 times (100%)

Outside Director

Chiaki Tsuji

16 times/16 times (100%)

Outside Director

Keiko Yamahira

16 times/16 times (100%)

Outside Director

Naohito Yamagishi

16 times/16 times (100%)

As a concrete Details for Fiscal Year 2023 under Board of Directors, we have established a structure that enables us to make quicker and more flexible
management decisions in the future. At the same time, we have clarified the profitability and business responsibilities of each Segment and effectively utilized
management resources. In addition, we have reviewed the transition to a holding company structure in order to further strengthen governance. With October
1, 2022, we have shifted to a pure holding company structure. Accordingly, as the basic Policy of management, we have indicated our raison purpose andvalues, and we are promoting corporate activities based on the par path. In addition, we shared information and exchanged views on important management
issues not only between Outside officers but also between internal and external directors and Executive Officers and others. The items discussed by Board of
Directors as key management issues are as follows.
・In formulating our management strategy, we conducted Election of managers in HD system to clarify management responsibilities. We are also actively
exchanging views on wage base pay increases as an investment in human resources.
・As part of the implementation of our management strategy, we made appropriate decisions on business execution, such as the sale of existing assets in
preparation for the early transition to a HD structure, and executed investments and loans and debt guarantees, as appropriate, taking into account thefinancial condition of each Group company.
・Other evaluated the effectiveness of Board of Directors, and then discussed future initiatives to strengthen Board of Directors and group governancesystems after the transition to HD system, which was identified as an issue for the future, and to enhance discussions on management strategies, includingcrisis-management systems and investing in human capital, for the entire group.

- 76 -(Audit & Supervisory Board)
Audit & Supervisory Board is empowered to carry out Audit of the execution of Director's duties and the proper implementation of the accounting Audit
from an independent and objective standpoint as its main roles and responsibilities. In principle, Audit & Supervisory Board meets at the monthly Oncefrequency and currently consists of 3 members: Yuko Miura, Standing Audit & Supervisory Board Members Masaki Kimura, and Akihito Watanabe Part-time
Audit, all of whom are outside Audit & Supervisory Board members. This ensures a system for more appropriate Audit, including the status of Board of
Directors operations and the status of Director's business operations. For information on the activities of Audit & Supervisory Board Members and Audit &Supervisory Board, please refer to (3) Audit Status ① Audit & Supervisory Board Members Audit Status.
(Other Commission)
Other, we have established the Nomination Advisory Committee and the Compensation Advisory Committee, which are voluntary advisory bodies, withthe aim of enhancing the objectivity and transparency of the decision-making process concerning personnel, compensation, etc. for Director, etc. and further
enhancing and strengthening our corporate governance system. The Nominating Advisory Committee is composed of Outside Director Naohito Yamagishi,
Kaname Uchida, Yuko Kanamaru, and Representative Director Kazuichi Shimada. The Compensation Advisory Committee is composed of Outside Director
KeikoYamahira, Naohito Yamagishi, Kaname Uchida, Yuko Kanamaru, and Representative Director Kazuichi Shimada.
Attendance Status of each member to the Nomination Advisory Committee and the Compensation Advisory Committee in Fiscal Year 2023 is as follows.

Attendance Status
Title

Name Title
Appointment Advisory Committee

Compensation Advisory Committee

Kenji Kawada

10 times/11 times (91%)

10 times/11 times (91%)

Keiko Yamahira

11 times/11 times (100%)

11 times/11 times (100%)

Outside Director

Chiaki Tsuji

11 times/11 times (100%)

11 times/11 times (100%)

Outside Director

Naohito Yamagishi

11 times/11 times (100%)

11 times/11 times (100%)

Representative Director

Kazuichi Shimada

11 times/11 times (100%)

11 times/11 times (100%)

Outside Director(Nomination Advisory Board Chair)Outside Director(Compensation Advisory Board Chair)

The Nomination Advisory Committee's Fiscal Year 2023 specific review Details was determined by examining succession plans for the development andselection of successors for CEO, etc.
The Compensation Advisory Committee considered and decided on the executive compensation system as a specific Details for Fiscal Year 2023.
Compliance Committee meets on a monthly Once basis, and Risk Management Committee meets on a quarterly basis in principle. Once meets whenevernecessary. The system ensures the appropriateness of Subsidiaries and associates operations by ensuring thorough compliance, risk assess ment andmanagement, and by having the general manager of the Group's Internal Audit Office and Audit & Supervisory Board members regularly conduct Audit to
Subsidiaries and associates. The 2 committees consist of Representative Director Kazuichi Shimada as Chair and Executive Officers Go Yamaji as the deputy
Chair, and Director Daisuke Nakamura, Akisawa Shoichi, Outside Director Yamadairako, Naohito Yamagishi, Kaname Uchida, Yuko Kanamaru, Standing
Audit & Supervisory Board Members Yuko Miura, Masaki Kimura and Part-time Audit Akihito Watanabe.

- 77 -

Compliance Committee and Attendance Status to Risk Management Committee by each member in Fiscal Year 2023 are as follows.

Attendance Status
Title

Name Title
Compliance Committee

Risk Management Committee

Kazuichi Shimada

12 times/12 times (100%)

5 times/5 times (100%)

Go Yamaji

2 times/2 times (100%)-

Masashi Yamamoto

12 times/12 times (100%)

5 times/5 times (100%)

Outside Director

Kenji Kawada

12 times/12 times (100%)

5 times/5 times (100%)

Outside Director

Chiaki Tsuji

12 times/12 times (100%)

5 times/5 times (100%)

Outside Director

Keiko Yamahira

12 times/12 times (100%)

5 times/5 times (100%)

Outside Director

Naohito Yamagishi

12 times/12 times (100%)

5 times/5 times (100%)

Makoto Endo

12 times/12 times (100%)

5 times/5 times (100%)

Yuko Miura

12 times/12 times (100%)

5 times/5 times (100%)

Asami Honma

12 times/12 times (100%)

5 times/5 times (100%)

Representative Director (Chair)Group CRO (Deputy Chair)DirectorStanding Audit & Supervisory Board
Members
Standing Audit & Supervisory Board
Members
Part-time Audit(NOTE)Mr. Executive Officers's Compliance Committee and Attendance Status of Risk Management Committee are based on the number of meetings of both committees
held in Fiscal Year 2023 since the Group CRO became Vice Chair of both committees as a result of revisions to Compliance Committee Regulations and Risk
Management Committee Regulations dated January 29, 2024.
As a concrete Details for the Fiscal Year 2023 study by Compliance Committee, we examined responses to whistle-blowing. We also examined andimplemented various types of training as a thorough compliance initiative for our executives and employees.
As a specific Details for Fiscal Year 2023 in Risk Management Committee, we assessed and identified "risks that should be addressed company-wide"
among the risks surrounding our group based on the degree of impact and likelihood of occurrence of each risk. We also considered and formulated appropriate
countermeasures for identified risks, monitored those risks, and discussed and put in place Report system.
Furthermore, in addition to holding quarterly Once meetings in principle, Sustainability committee meets whenever needed to formulate Policy related to
our Sustainability, identify and regularly review materiality as a Important issue, determine environmental Policy and measures, and Report our Sustainability
promotion activities to Board of Directors. Sustainability committee consists of Representative Director Kazuichi Shimada as a Chair and Director Daisuke
Nakamura, Shoichi Akisawa, Outside Director Keiko Yamahira, Naohito Yamagishi, Kaname Uchida and Yuko Kanamaru.
Attendance Status of Sustainability committee members in Fiscal Year 2023 was as follows.

Attendance Status
Title

Name Title
Sustainability committee

Representative Director (Chair)

Kazuichi Shimada

4 times/4 times (100%)

Director

Masashi Yamamoto

4 times/4 times (100%)

Outside Director

Kenji Kawada

4 times/4 times (100%)

Outside Director

Chiaki Tsuji

4 times/4 times (100%)

Outside Director

Keiko Yamahira

4 times/4 times (100%)

Outside Director

Naohito Yamagishi

4 times/4 times (100%)

Specific Details for Fiscal Year 2023 at Sustainability committee included the establishment of a KPI for Sustainability, monitoring progress, and respecifying Important issue (materiality). In addition to analyzing scenarios for disclosing TCFD and determining responses to CDP Climate Change
Questionnaire, as a response to climate change, we decided to disclose calculated data on the environment. We also revised Target to reduce emissions ofgreenhouse gases (Scope1, 2 and 3) associated with our group's business activities by 45% by Fiscal Year 2030 (compared to Fiscal Year 2022) and to make it
net-zero by Fiscal Year 2050, and deliberated on measures to reduce emissions.

- 78 -

The corporate governance structure of our group is shown below.

Ordinary General Meeting of Shareholders
Election

Election
Election
Collaboration

AdviseAudit &

Nomination Committee

Audit

Board of Directors
AdviseCompensation
Committee

Supervisory
Board(including Outside
Audit
Directors)(Outside
Auditors)

ReportElection and Supervise

Audit

Accounting Auditor

Business Divisions

Direction

Administration
Divisions

ReportReportReportExecutive Officers

Compliance

Committee

Committee

Risk Management

Collaboration

Sustainability
Committee

Representative
Director

ReportCollaboration

Audit
Collaboration

Group Internal Audit Office
ReportReport
Audit

Audit

Audit

Subsidiaries and associates

1. Reasons for adopting this system
We have adopted the above-mentioned system to Supervise and Audit the decision-making and the execution thereof, and to ensure the system that enables
prompt decision-making, while striving to manage risks, ensure thorough compliance and improve internal controls for the entire Group.

③ Corporate Governance For Other Mattersa. Internal Control System
We have established the Internal Control Basic Regulations, which stipulate the basic systems, maintenance, operation, evaluation, and renewal of internal
controls to ensure the appropriateness of the operations of us, Consolidated subsidiaries, and equity-method affiliates, as well as the basic matters andprocedures incidental to these.

1. Risk Management Systema)Risk Management System
We have established the Risk Management Regulations to manage the Group's risks and to ensure the sustained improvement of our corporate value.
Based on these regulations, we have established Risk Management Committee with the President as Chair to verify and Report all risks related to overallmanagement, and to discuss or decide on the measures and management to be implemented to avoid or reduce these risks. in order to strengthen internal
controls and thoroughly prevent scandals related to operations as a whole, including financial reporting, and non-compliance incidents. In order to develop
and continuously improve the Group's risk management system, our Board of Directors will Election the Group CRO (Chief Risk Management Officer)
from among Director or Executive Officers, and we will request the convocators to call Risk Management Committee as needed. In this way, we willproactively propose appropriate risk management. In addition, discussions and decisions made at Risk Management Committee are verified in accordancewith Risk Management Committee Regulations as appropriate, and Report to Board of Directors is made as Details to make a This system enables prompt
decision making when risks materialize..

- 79 -

Our Group's risk management system is shown below.

MIRARTH Holdings Board of Directors
Supervise

ReportSupervise

Supervise
and advisory

ReportChair CEOVice-chairman and Secretary-General CRO
ReportCollaboration

Supervise
Direction

ReportDirection
ReportCollaboration(Board of) Auditors

Risk Management Committee

Appointment
andSupervise

Chief Risk Officer (CRO)Group Legal Department
Collaboration
and advisory<First Line>At each group company
Business Divisions

MIRARTH groups
Risk management supervisor<Second Line>
Individual Administration Divisions<Third Line>
Audit

MIRARTH groups
Risk management supervisor

Internal Audit
Administration Department

Administration Department

Administration Department

Business Divisions

Business Divisions

Business Divisions

OfficeReportb)Countermeasures against Antisocial Forces
Our basic Policy is to respond decisively to anti-social forces that threaten the order and safety of society. Under the guidance of our advisory Attorneyat-law, we actively participate in activities to eliminate organized crime groups. In addition, the Company has established a system for antisocial forces in
Collaboration with the relevant police stations and external specialist organizations such as the Adviser Attorney-at-law. In order to prevent damage causedby anti-social forces, the NTA endeavors to gather information by participating in seminars and other events on anti-social forces held by police stations
and relevant organizations in peacetime.
In addition, we will ask our business partners to exchange a Memorandum of Understanding on Insulation with Antisocial Forces, or include "Antisocial
Forces Elimination Clauses" in various contract documents, etc. and make a of anti-social forces in agreements to enhance measures to eliminate anti-social
forces..
U. Status of Development of Systems to Ensure Appropriateness of Subsidiaries' Operations
In the Regulations Governing Affiliated Companies, we have stipulated Subsidiaries and associates management Policy and management organization. We
have dispatched our Director, Executive Officers and Audit & Supervisory Board Members to Subsidiaries and associates and regularly held Report meetings
to share information. In this way, we are working to streamline management.
E. Outline of Details of Limited Liability Agreement
We have concluded an agreement with Director (excluding those who are executive Director, etc.), Outside Audit & Supervisory Board Members, andAccounting Auditor to limit liability for damages as set forth in Article 423 I of the Companies Act pursuant to the provisions of Article 427 I of the Companies
Act. The amount of liability for damages under the applicable agreement is the minimum liability amount as provided by laws and regulations, provided thatsuch liability is limited to the cases where the performance of duties caused by such Director (excluding those who are executive Director, etc.), Outside Audit& Supervisory Board Members, and OOE are performed in good faith and without gross negligence.

O. Outline of Details of the Officer Liability Insurance Contract concluded with the Officer, etc. as the insured
We have entered into liability insurance contracts with insurance companies for directors and statutory auditors, as defined in Section 430-3 I of theCompanies Act, with employees who are insured by us and all of our subsidiaries (except MIRARTH Real Estate Investment Adviser Co., Ltd.), who are
Director, directors and Audit officers, Executive Officers, and employees who are responsible for administrative Supervise and directing.
A summary of Details of such policies is as follows:- 80 -

・In the event of a company lawsuit, a shareholder representative lawsuit, or a third party lawsuit, the Company will indemnify the insured against any
damages, including compensation for damages and litigation expenses, which are incurred by the insured.
・As a measure to ensure that the appropriateness of the execution of duties by the insured officer is not impaired, the damage caused by the criminal act or
misconduct of the officer shall not be covered.

- 81 -

Ka. Fixed number of directors
We have stipulated in our Articles of Incorporation that we shall have no more than 15 directors.
Ki. Resolution Requirements for Election and Dismissal of Directors
The Articles of Incorporation of the Company stipulate that Director's Election resolution shall be made by a majority of the votes of shareholders present
who hold 1-third or more of the voting rights of all shareholders with voting rights.
In addition, the Articles of Incorporation provide that Election resolutions of Board of Directors shall not be made by cumulative voting.
Ku. Ordinary General Meeting of Shareholders resolutions that can be resolved by Board of Directors
・Decision-making body for Dividend of surplus, etc.
We have stipulated in the Articles of Incorporation that matters stipulated in Article 459 I of the Companies Act, including Dividend of surplus, may be
stipulated by a resolution of Board of Directors without a resolution of Ordinary General Meeting of Shareholders, unless otherwise stipulated by law. The
objective is to flexibly return Profit to shareholders by allowing Dividend of surplus, etc. to be determined by Board of Directors resolutions.
・Interim dividend
We have stipulated in the Articles of Incorporation that interim dividends may be paid by Board of Directors resolution pursuant to Article 454, Paragraph
5 of the Corporation Act. This is to enable flexible return of incomes to shareholders.
・To acquire its own Equity securities
We have stipulated in the Articles of Incorporation that we may acquire our own Equity securities by a resolution of Board of Directors pursuant to Article
165 II of the Companies Act. The aim of this is to acquire treasury Equity securities through market transactions and other means in order to enable theexecution of flexible capital policies in response to changes in the business environment.
・Exemption from Liability of Director and Audit
Pursuant to the provisions of Article 426 I of the Companies Act, the Company's Articles of Incorporation provide that the Company may, by resolution ofBoard of Directors, exempt Director (including former Director) and Audit (including former Audit) from their liabilities with respect to the acts set forth in
Article 423 I of the Companies Act to the extent permitted by laws and regulations. The objective of this program is to create an environment in which Directorand Audit can fulfill their expected roles by fully exercising their capabilities in carrying out their duties.
Ke. Extraordinary Resolution Requirements of Ordinary General Meeting of Shareholders
The Articles of Incorporation of the Company provide that Extraordinary Resolution Requirements of Ordinary General Meeting of Shareholders set forthin Article 309 II of the Companies Act shall be implemented by 2-thirds or more of the voting rights of shareholders present who hold 1-third or more of theshareholders with voting rights. This is aimed at facilitating the smooth operation of Ordinary General Meeting of Shareholders by easing the fixed number ofextraordinary resolutions in Ordinary General Meeting of Shareholders.

- 82 -

(2)[ Status of Directors and Audit & Supervisory Board Members]① Board of Directors
Male: 7 Female: 3 (Ratio of female directors: 30.0%)
Title

Name Title

Date of birth

Brief History

Term of
OfficeNumber of shares
held(Thousands ofShares)(NOTE)3

1,008(NOTE)3

-

May 1987 Joined our company
June. 1998 Director and General Manager of Development Dept. of the Company
June. 2000 Managing Director and General Manager of Development Division of theCompany
Head Office Development Department Manager and Construction
Department Manager
June. 2006 Vice President and General Manager of R&D Division of Representative
Director
April. 2012 Vice President and Chief Operating Officer of Representative Director(COO)
Chief Financial Officer (CFO) and General Manager of Corporate Planning
Division

Representative Director,

April, 2014 Our President and Chief Executive Officer (CEO) Representative Director

Group CEO, Group COO,

Chief Operating Officer (COO)

President and Executive
Officers

Kazuichi Shimada Born on December 4, 1965

Chief Financial Officer (CFO)
April. 2019 President and Chief Executive Officer of our Representative Director(CEO)
June, 2019 Our Representative Director and Chief Executive Officer (CEO) and
President and Executive Officers

October, 2022 Our Representative Director, Group CEO, Group COO and President
and Executive Officers (to present)

Takara Leben Co., Ltd. Representative Director and CEO, President andExecutive Officers

June. 2024 Vice Chairman, Takara Leben Co., Ltd. Director (current position)
Housing Industry Credit Guarantee Co., Ltd. Outside Director (to present)
April. 1991 Joined Taiyo Kobe Mitsui Bank, Ltd. (currently Sumitomo Mitsui Banking
Corporation)
April, 2014 Tokorozawa General Manager of Corporate Sales Dept.
April. 2016 General Manager of Corporate Strategy Dept.
April, 2017 General Manager, Nihonbashi East Corporate Sales Dept.
April. 2019 General Manager, Kanda Corporate Sales Department I
April. 2020 Executive Officers
Head of Kanda Corporate Sales Department I
April, 2021 Bank Executive Officers
Director

Head of East Japan Corporate Sales Division 1

Senior Vice President, CFO

April. 2023 Managing Executive Officers

and Executive Officers (incharge of Group FinanceDept. and Group Accounting
Dept.)

Deputy Chief Officer of Wholesale Division
Daisuke Nakamura Born on February 12, 1968

Sumitomo Mitsui Financial GroupManaging Executive Officers
Assistant General Manager, Wholesale Business Divisions Business
Divisions
May 2024 Managing Executive Officers of the Company
June 2024 Director and CFO of the Company

Senior Managing Director, Executive Officers (in charge of Group FinanceDept. and Group Accounting Dept.) (to present)

Takara Leben Co., Ltd. Director and Senior Managing Director, Executive
Officers (to present)- 83 -

TitleName Title

Date of birth

Brief History

Term of
OfficeNumber of shares
held(Thousands ofShares)(NOTE)3

162(NOTE)3

-

Joined April, 1988 Towa Real Estate Co., Ltd. (currently Mitsubishi Estate ResidenceCo., Ltd.)May 1997 Atec Representative Director, LLC
January 2002 Inters Director Co., Ltd.
February. 2004 Pacific Management Co., Ltd.
(Pacific Holdings Co., Ltd. Executive Officers)
June. 2008 Representative Director, Pacific Realty Co., Ltd.
Pacific Properties Investment Representative Director, LLC.
January. 2011 General Manager, Strategic Business Department, Star Mica Co., Ltd.
February 2012 General Manager of Director Strategic Business Division
Fun Investment Co., Ltd. (currently Star Mica Property Co., Ltd.)
Representative Director
December. 2014 Representative Director, Star Mica Co., Ltd.
June, 2016 Rising Force, Inc.
(currently Daito Trust Asset Solution Co., Ltd.)
Representative Director
Director (in charge of Real
Estate Segment)

Shoichi Akisawa

Born May 10, 1965

June, 2019 Our Director
Senior General Manager, Executive Officers Investment/Development
Division
April. 2020 Our Director
Senior Vice President and General Manager of Executive Officers Business
Development Division
April, 2021 Our Director
Senior Vice President and General Manager of Business Division, Executive
Officers Investment/Development Division
October, 2022 Our Executive Officers
Takara Leben Co., Ltd. Representative Director and COO and Vice President
Executive Officers

June. 2024 Director (in charge of Real Estate Segment) (to present)
Takara Leben Co., Ltd. Representative Director and President & Executive
Officers (to present)

April. 1983 Joined Kubota House Corporation (currently Sanyo Homes Corporation)
April 2010 Executive Officers, Sanyo Homes Co., Ltd.
June. 2011 Director and Managing Executive Officers
June. 2012 Director, SANYO REFORM CO., LTD. (concurrent)
June. 2013 Director and Senior Managing Executive Executive Officers, Sanyo Homes
Co., Ltd.
Director, Sun Advance Co., Ltd. (concurrently)
Director

Keiko Yamahira

Born on November 30,
1960

Director, Sanyo Homes Community Co., Ltd. (concurrent position)
June. 2015 President and Executive Officers, Sanyo Homes Co., Ltd.
April. 2017 Chairman, Representative Director, Sanyo Homes Community Co., Ltd.
June. 2019 Outside Director, Joshin Denki Co., Ltd. (current)
FUJITECH Co., Ltd. Outside Director
June. 2021 Director of the Company (to present)
June. 2022 Outside Director, Shinagawa Refractories Co., Ltd. (current position)
June. 2024 Outside Director, Maruichi Tube Co., Ltd. (current position)- 84 -

TitleName Title

Date of birth

Brief History

Term of
OfficeNumber of shares
held(Thousands ofShares)(NOTE)3

3(NOTE)3-

April. 1986 Joined National Policy Agency
April. 1990 Director, Investigation Section 2, Criminal Department, Kagawa
Prefectural Police Headquarters
August. 1991 Chief, Public Security Division 1, Saitama Prefectural Police
Headquarters
August. 1993 Deputy Chief, Transportation Regulation Division, Transportation
Bureau, National Police Agency
August 1994 Assistant to Chief of Road Administration Division, Road Bureau,
Ministry of Construction (currently Ministry of Land, Infrastructure,
Transport and Tourism)
September 1996 Assistant Director, Driving License Section, Traffic Bureau, National
Police Agency
August. 1998 General Manager, Police Department, Nara Prefectural Police
Headquarters
August. 2000 Vice President, Security Department, Hyogo Prefectural Police
Headquarters
August 2002 Director-General, Security Department, National Police Agency
August 2004, with National Police Agency (Cabinet Information Research Office)September. 2006 General Manager, Security Dept., Kanagawa Prefectural Police
Director

Naohito Yamagishi

Born August 5, 1961

Headquarters
August 2008 Counselor, Personnel and Pension Bureau, Ministry of Internal Affairs andCommunications
August. 2010 General Manager, Wakayama Prefectural Police Division
August. 2012 General Manager, Police Department, Kanagawa Prefectural Police
Headquarters
August. 2013 Chief of Driver's License Section, Transportation Bureau, National Police
AgencyJune. 2014 Deputy General Manager, Imperial Guard Headquarters
February. 2016 Chief, Niigata Prefectural Police Division
Director, March, 2018 College of National Police Agency
Deputy Director-General of the National Police Agency (in charge ofmeasures for crime victims)
January. 2019 General Manager, Hokkaido Police Division
Resigned in August 2020
January. 2021 Adviser, Mitsui Sumitomo Insurance Co., Ltd.
June. 2022 Director of the Company (to present)
December. 2022 Counselor, National Association of Road Signs and Marking Dealers
May 2023 (1 company) Senior Executive Director, National Road Signs and Signage
Association (present)
June. 2023 Auditor, UTMS Institute (part-time) (current)
April. 1978 Joined Ministry of Construction (currently Ministry of Land, Infrastructure,
Transport and Tourism)
July 2004 Director, Policy Division, Policy Bureau, Ministry of Land, Infrastructure,
Transport and Tourism
August. 2005 Director, General Affairs Division, Policy Bureau, Ministry of Internal
Affairs and Communications
July. 2006 Senior Manager, General Affairs Division, Minister's Secretariat
Minister and Deputy Secretariat (Minister's Secretariat)
July. 2007 Deputy Vice-Minister of Minister and Secretariat (Policy Bureau)
July. 2009 Deputy Director-General of the Minister's Secretariat
August. 2010 Director, Land & Water Resources Department

Director

Kaname Uchida

Born June 14, 1954

July. 2011 Director, Land and Bureau of Construction, Trade and Industry
July 2012 Vice President, Urban Renaissance Agency
July. 2014 Deputy Director-General, Cabinet Secretariat
Cabinet Secretariat and General Manager of Regional Revitalization
Integrated Secretariat
January, 2015 Cabinet Secretariat, Deputy Director-General of the Cabinet
Chief Cabinet Secretary and Chief Cabinet Secretary for Regional
Revitalization
Director, World Heritage Registration Promotion Office of Fusa Industrial
Heritage Site)
Also General Manager, Regional Revitalization Promotion Office, Cabinet
Office- 85 -

Retired in July 2015
November 2015 Executive Vice President of Real Estate Association
Visiting Professor, Reizawa University, April, 2017 (to present)
July 2023 (Single Company) Advisor to the Real Property Association (current)
July 2023 Director-General of Land Corporate R & D Laboratories
June 2024 Director of the Company (to present)- 86 -

TitleName Title

Term of
OfficeNumber of shares
held(Thousands ofShares)(NOTE)3

-

March. 2022 Outside Audit & Supervisory Board Member, Monster Lab Holdings, Inc. (NOTE)4-

Date of birth

Brief History

October. 2006 Registered as Tokyo Attorney-at-law Association
Joined Mori Hamada & Matsumoto
May 2012, University of California
Graduated from los angeles law school
August 2012 Rajah&Tann Law Office (Singapore)
August. 2013 Transferred from Sumitomo Electric Industries, Ltd.
Partner-Partner January, 2018 Mori Hamada Matsumoto Attorney-at-law
April. 2018 Graduate School of Law, Keio University(International Commerci
Director

Yuko Kanamaru

Born August 25, 1979

Al Arbitration) Part-time lecturer
July 2022 External Audit of Acuris Pharma Co., Ltd. (current)
January. 2023 Partner of Gaien Law Office Attorney-at-law (current)
Outside Audit & Supervisory Board Member, February, 2023 Bleaf Corporation (topresent)
June. 2023 Member of AI Outside Director Co., Ltd. (Audit and Supervisory
Committee) (to present)
July 2023 HEROZ Corporation Outside Director (Audit and Supervisory Committee
Member) (current)
June 2024 Director of the Company (to present)
December. 2005 Joined ChuoAoyama Audit Corporation (currently PwC Japan LLC)
Registered as Certified Public Accountant in May 2008
February. 2012 Joined Novartis Pharma 0.0. Corporate Accounting Department
Stadist Audit, Inc., full-time, June 2019
June. 2020 Full-time Audit & Supervisory Board Member of the Company (to present)
October. 2020 Audit & Supervisory Board Member, Nikko Takara Corporation(currently Leben Home Build Co., Ltd.)Standing Audit & Supervisory
Board Members

Takara Leben Realnet Co., Ltd. Audit & Supervisory Board Members
Yuko Miura

Born on March 10, 1984

(current)
June 2022 Leben Zestock Co., Ltd. Audit & Supervisory Board Member (current
position)
October 2022 Takara Leben Co., Ltd. Audit & Supervisory Board Member (current
position)
December 2023 External Audit of Pacific Consultants Co., Ltd. (current)
May 2024 Takara Leben Realnet Co., Ltd. Audit & Supervisory Board Members(current position)
April. 1987 Joined Kyowa Bank, Ltd. (currently Resona Bank, Ltd.)
April. 2006 General Manager, Hiroakiji Branch of the bank
April 2008 Resona Holdings Co., Ltd.
Internal Audit Department Audit Members
July. 2008 Senior Audit Representative of the Company's Audit Department
July. 2011 Group Leader, Trust Business Administration Department, Resona Bank,
Ltd.
October. 2016 General Manager, Investment Management Office of the Bank
General Manager, Trust Administration Office, April, 2017 Bank

Standing Audit & Supervisory
Board Members

January 2020 Resona Asset Management Co., Ltd.
Masaki Kimura

Born on June 11, 1964

Manager of Loan Investment Risk Management Dept.
April, 2021 seconded to Executive Officers, General Manager of Business Department
Also in charge of IT Strategic Planning Department
In charge of Investment Risk Management Department
October. 2021 General Manager of Executive Officers Business Dept.
Also in charge of IT Strategic Planning Department
In charge of Investment Risk Management Department
April. 2024 Joined Resona Bank, Ltd.
Loan Advisor, Resona Asset Management Co., Ltd.
June 2024 Standing Audit & Supervisory Board Members of the Company (to present)
Takara Leben Co., Ltd. Audit (current position)- 87 -(NOTE)4-

TitleName Title

Date of birth

Brief History

Term of
OfficeNumber of shares
held(Thousands ofShares)(NOTE)4-

April. 1984 Joined the Shoko Chukin Bank
July. 2005 Branch Manager, Fukushima Branch of the same bankJuly. 2007 Branch Manager, Niigata Branch of the same bankJuly. 2010 Counselor, General Affairs Department, Bank
July. 2011 Counselor, Banking Business Promotion Department
Part-time Audit

Akihito Watanabe Born on December 3, 1961 June. 2012 General Manager, Compliance Office
December. 2013 General Manager, Credit Control Dept., The Bank
August 2015 Managing Director, Executive Officers, Shoko Chukin Keizai Inc.
April. 2019 Managing Executive Officers, Shoko Chukin Lease Co., Ltd.
June 2024 Part-time Audit of the Company (to present)
Takara Leben Co., Ltd. Audit (current position)
Total

1,173

(NOTE)1. 4 Outside Director are Keiko Yamahira, Naohito Yamagishi, Kaname Uchida, and Yuko Kanamaru.
2.Audit & Supervisory Board Member Yuko Miura, Masaki Kimura and Akihito Watabe are 3 outside Audit & Supervisory Board members.
It is from the closing of Annual Shareholders' Meeting on June 26, 3.2024 to the closing of Within 1 year's final Business Year.
It is from the closing of Annual Shareholders' Meeting on June 26, 4.2024 to the closing of Within 4 years' final Business Year.
5.We Election a substitute Audit officer as stipulated in Article 329 III of the Companies Act in case the number of Audit officers as stipulated by law is notavailable. Brief history of Audit & Supervisory Board Member is as follows.
Number of shares
Name Title

Date of birth

Brief History

held(Thousands ofShares)April. 1978 Joined The Shoko Chukin Bank (currently The Shoko Chukin Bank)
July. 1999 Branch Manager, Kurume Branch of the same bankJuly. 2001 Inspector, Banko Inspection Department
July. 2003 General Manager, Fund Securities Division, The Bank
March. 2004 General Manager, Treasury Market Operations Office
August. 2006 General Manager, International Department of Safe Bank
August. 2007 Dispatched to Polymatech Co., Ltd.
September 2010 Transferred to Polymatech Co., Ltd.
Makoto Endo

Born September 2, 1955

October. 2011 Managing Director, Shoko Chukin Card Co., Ltd.
June. 2018 Full-time Audit & Supervisory Board Member of the Company (to present)
June. 2018 Leben Zestock Co., Ltd. Audit & Supervisory Board member
June 2018 Takara Asset Management Co., Ltd. (current MIRARTH asset
Director, Audit of Scrubber Co., Ltd.
May 2022 Leben Trust Co., Ltd. Audit & Supervisory Board members
October, 2022 Takara Leben Co., Ltd. Audit & Supervisory Board Members
January 2023 Takara Asset Management Co., Ltd. (now MIRARTH Assets)
Director, Audit of Scrubber Co., Ltd.
May 2024 Leben Home Build Co., Ltd. Audit & Supervisory Board Member (current position)

6.We have introduced Executive Officers system, and in addition to the above, we have 4 Executive Officers employees as shown below.
Executive Officers Mika Takaara
Executive Officers Mamoru Takahashi
Executive Officers Kentaro Taniguchi
Executive Officers Go Yamaji- 88 --

② Status of Outside officers
We Election 4 Outside Director members, and all 3 of our Audit & Supervisory Board members are outside Audit & Supervisory Board members.
In addition, we have established independence standards for Election of Outside Director or Outside Audit & Supervisory Board Members. These standards
include the fact that we do not have a personal relationship or business relationship with us, that we satisfy the independence requirements stipulated by Tokyo
Stock Exchange, that there is no risk of Profit conflict with ordinary shareholders, that we have extensive experience and Actual at Financial institutions andother companies, and that we have a wide range of knowledge and views in various specialized fields such as tax, accounting and legal matters.
Outside Audit & Supervisory Board Member Masaki Kimura worked for Resona Bank, Ltd., our borrower. However, the ratio of the amount borrowed fromthe bank to our borrowing amount (as of March 31 of 2024) was approximately 2.47%, and we have determined that this will not affect his independence.
Outside Audit & Supervisory Board Member Akihito Watanabe was the General Manager of the Credit Supervisory Department of the Shoko Chukin Bank,
Ltd., which is our borrower. However, as the ratio of the amount of borrowings from the bank to our borrowings (as of March 31 2024) was approximately
1.32%, and since more than 8 years have passed since he retired as the General Manager of the Credit Supervisory Department of the Company, we havedetermined that this will not affect his independence.
There are no personal or business relationships between Other's Outside Director, Outside Audit & Supervisory Board Members and us. The number ofshares of our company owned by each outside officer is described in "(2) Status of officers, ① List of officers."③ Relationship between Supervise or Audit by Outside Director or Outside Audit & Supervisory Board Members and Internal Audit, Audit & Supervisory Board
Members Audit and Accounting Audit, and Relations with Internal Control Divisions
Outside Audit & Supervisory Board Members constantly Audit and Board of Directors and other important meetings, and from that standpoint, express theirviews as needed to constantly Director's business operations and Supervise. With regard to Standing Audit & Supervisory Board Members, the Company has a
deep understanding of management, is proactively working to improve Audit's environment and gather internal information. The Company routinely monitors
the status of the establishment and operation of internal control systems, and objectively expresses its opinions and provides advice. The Company believes thatmanagement is sufficiently appropriate.
In accordance with Outside Director's Supervise, Audit & Supervisory Board Members' Audit by Outside Director or external Audit, internal Audit and Audit& Supervisory Board Members, and Collaboration with Audit & Supervisory Board Members Audit and Accounting Audit, the Company obtains Audit from theGroup Supervise, Audit & Supervisory Board Members and Audit as needed to identify the current status and issues, and to make comments at Audit, and theOutside Audit & Supervisory Board Members, in accordance with Audit Audit and Audit Planning established by Audit and the Outside Audit & Supervisory
Board Members, while pursuing Collaboration with the Group Audit and Collaboration
Outside Audit & Supervisory Board Members monitor and verify that Internal Audit Office conducts appropriate Audit operations by attending Audit Details
meetings and soliciting opinions as necessary. The Company also strives to establish an effective and efficient Audit system by monitoring and verifying
whether Accounting Auditor conducts appropriate Audit and by obtaining Report and explanations from Accounting Auditor regarding the status of theexecution of their duties and other matters, and by making various financial statements and other audit.

- 89 -

(3)[Audit Status]① Audit & Supervisory Board Members Audit Status
a. Audit & Supervisory Board Member Audit's organizational structure, personnel, and procedures
We are a company with Audit & Supervisory Board, and Audit & Supervisory Board is comprised of 3 outside Audit & Supervisory Board members who
have been delivered to Tokyo Stock Exchange as independent Outside officers.
Mr. Yuko Miura is a Standing Audit & Supervisory Board Members qualified Certified Public Accountant and is involved in the field of tax and accounting
at Audit corporations and general business companies. Also, Masaki Kimura and Akihito Watanabe, who are also Part-time Audit, have held the positions ofbranch manager and department manager at Financial institutions, and both have knowledge of finance, accounting, and organizational management, etc.
In addition, the above 3 Audit & Supervisory Board members also serve as Audit officers for Takara Leben Co., Ltd., a subsidiary. In effect, the Company
and Takara Leben Co., Ltd. conduct Audit together under a system of 3 Standing Audit & Supervisory Board Members.
Frequency of Submitting Company's Audit & Supervisory Board Members' and Audit & Supervisory Board's activities in b. Current fiscal year, and Details, etc.
The above 3 outside Audit & Supervisory Board members Audit the status of execution of duties by Director and For Other employees in their respective
Audit activities from the standpoint of legality and appropriateness. Audit & Supervisory Board Members' Audit results are summarized in Audit report after
Report and discussions at Audit & Supervisory Board meetings held over the month Once and Audit & Supervisory Board Members' meetings held asappropriate. In Audit process, groups conduct efficient and effective Internal Audit Office by listening to Accounting Auditor's Details, as well as the outcomeof the work conducted by our Accounting Auditor.
Specific activities of Audit & Supervisory Board Members Details include attending Board of Directors and holding Audit & Supervisory Board (see tablebelow), as well as attending and submitting opinions at key meetings such as Compliance Committee and Risk Management Committee (see Page 81) and
Executive Committee (12 times), and enhancing the effectiveness of Cooperation and information sharing and Audit by holding group Audit & Supervisory
Board (2 times), holding (13 times) and Audit corporations (10 times). We also hold monthly interviews with Representative Director and Outside Director toexchange views and make recommendations. In addition, we conduct on-site audits of divisions and business sites (including Audit of the affiliates in chargeof Audit & Supervisory Board Members) to ascertain the status of Director and Executive Officers and other executives and employees through interviews. In
addition, the Committee inspects and verifies important documents such as proposals and accounting, responds to whistle-blowing issues through the whistleblowing system (Helpline), and verifies the status of the Company's response to cases and the effectiveness of preventing recurrence.
The specific Details of Audit & Supervisory Board in Fiscal Year 2023 (resolution and consultation Details) are described below. In particular, Current
fiscal year conducted Audit focusing on the status of the group-management system for a variety of risk factors that are diversifying in line with the expansionof business size and scope. Audit & Supervisory Board held repeated discussions on issues that were recognized as a result. At the meetings of Board of
Directors, the Compliance/Risk Management Committee, and other committees, and through interviews with Representative Director and other senior
employees, the committee provided proposals and recommendations. We will continue to monitor measures to ensure that responses to these issues are effective
and ongoing, centered on the newly established CRO (Chief Risk Manager) in Fiscal Year 2023.
<Major Report and consultation items including resolutions at Audit & Supervisory Board and Audit & Supervisory Board Members' meetings>
・Matters for Resolution
Audit & Supervisory Board Members Consent to Election Proposal, Approval of Audit Corporation's Audit Result Report, Approval of Standing Audit& Supervisory Board Members & Audit & Supervisory Board Chairman's Election and Audit Director Compensation, Approval of Audit & Supervisory
Board Audit Plan, Consent to Audit Compensation of OOG Corporation
・Report and Consultation
The status of Board of Directors operations, the legality of agenda items, etc., and the status of Details reviews, statutory documents, disclosed
documents, etc., Details reviews, information sharing on whistle-blowing cases, response status, and systems for preventing reoccurrence, etc., the ideal
status of the compliance/risk management system, the status of business operations of Group subsidiaries, and the status of controls by the parent company,
etc.

Attendance Status of Audit & Supervisory Board Members to Board of Directors and Audit & Supervisory Board are as follows:

Attendance Status
Title

Standing Audit & Supervisory Board
Members
Standing Audit & Supervisory Board
Members
Part-time Audit

Name Title
Board of Directors

Audit & Supervisory Board

Makoto Endo

16 times/16 times (100%)

12 times/12 times (100%)

Yuko Miura

16 times/16 times (100%)

12 times/12 times (100%)

Asami Honma

16 times/16 times (100%)

12 times/12 times (100%)- 90 -

② Internal Audit Status
In order to enhance and strengthen our internal Audit, we have established a group-wide Internal Audit Office (6 persons) as an independent office under the
direct control of the president. In addition, the Internal Audit Regulations have been established to coordinate with Audit & Supervisory Board Members Audit
and Accounting Auditor Audit in planning and implementing internal Audit and to ensure the efficient operation of various functions. Audit & Supervisory Board
Members attend Audit, which is conducted by Internal Audit Office, and work to establish an effective and efficient Audit Details system by confirming Audit
Details and gathering opinions as appropriate. With regard to reporting lines, the Group Internal Audit Office conducts regular Report of Audit activities directly
to Board of Directors and Audit & Supervisory Board, and by operating this system, Collaboration system of the Group Internal Audit Office and Director and
Audit & Supervisory Board Members is secured.

③ Financial Audit Statusa. Name of Audit Corporation
Grant Thornton Taiyo LLC.

1. Continuous Audit duration
From the fiscal year ended March 1999 onward

U. Certified Public Accountant who execute business
Designated Limited Liability Partners Managing Partner Tomohiro Oki
Designated Limited Liability Partners Managing Partner Tetsuya Ishibashi
Designated Limited Liability Partners Managing Partner Takafumi Shimokawa

E. Composition of assistants for Audit services
We have 14 Certified Public Accountant and 11 Other assistants in our Audit services.
O. Audit Corporation Selection Policy and ReasonsWith regard to Accounting Auditor, we comprehensively evaluate and determine Accounting Auditor candidates by referring to the Practical Guidelines for
Audit & Supervisory Board Members, etc. related to the formulation of standards for evaluating and selecting Accounting Auditor issued by the Japan Audit& Supervisory Board Members Association.
In the event Audit & Supervisory Board deems that Accounting Auditor falls under any of the items set forth in Article 340 I of the Corporation Law,
Accounting Auditor shall be dismissed with the consent of all Audit.
There is no particular Interests between Audit Corporation and Managing Partner, an Audit corporation engaged by us. In addition, Managing Partner ofAudit Corporation is not to be involved for more than a certain period of time. The Company has concluded an audit agreement and pays audit fees under theagreement.
On December 26, 2023, Grant Thornton Taiyo LLC., our Accounting Auditor, was disposed of by the Financial Services Agency for 3 months from January
1, 2024 to March 31 of the same year, except for renewal of the term of Audit contract and new contracts associated with the listing of Audit companies thathave already signed Audit contracts. Audit & Supervisory Board received an explanation from Grant Thornton Taiyo LLC. regarding this disposition, but it
has been judged that this will not affect our qualification as a Accounting Auditor.

- 91 -

Ka. Valuation of Audit & Supervisory Board Members and Audit & Supervisory Board Corporations
As mentioned above, Accounting Auditor is evaluated based on the Practical Guidelines for Audit & Supervisory Board Members on the Evaluation of
Accounting Auditor and Establishment of Selection Standards published by the Japanese Institute of Audit & Supervisory Board Members.
We received Report from Audit Corporation regarding Audit plan and quarterly financial results, and verified its Details and asked and discussed major
accounting issues. In addition, regarding the quality control system to ensure that the independence of Accounting Auditor and the execution of duties arecarried out properly, which is of particular importance, we confirmed that there are no particular problems. We received briefings at Audit corporations on
the outline of the quality control system and explanations on the status of subsequent improvements to the results of the most recent external reviews by theJapan Certified Public Accountant Association and Audit Review Board (Financial Services Agency).
Regarding Key Audit Considerations (KAM), which Accounting Auditor considers particularly important when conducting Audit in its Audit report
documents, discussions with Audit & Supervisory Board over the course of the period were made on the following 2 items, focusing on items selected as
candidates by Audit corporations and taking into account the impact on accounting treatment of various management measures implemented during theperiod.
・Impairment review of Fixed assets held for Energy Business・Revenue Recognition for Sale Transactions of Real Estate and Generation Facilities
Audit & Supervisory Board confirmed the reasons for Audit Corporation's decisions regarding the ultimate KAM and our response to these items andAudit Corporation's assessment are appropriate.
In addition to the above issues, the Company has decided to reappoint Audit Corporation as well as determining Other Be related status of Collaboration
between Audit Corporation and the Corporate Manager, the Accounting Division, and the Internal Audit Division.
④ Details of Audit compensation, etc.
a. Compensation for Audit Certified Public Accountant, etc.
End of Previous Consolidated Accounting Period
Category

Compensation Based on Audit
Certification Services (Millionsof yen)Submitting Company
Consolidated
subsidiaries
Total

Current Consolidated Fiscal Year

Non Audit Business-Based
Compensation (Millions ofyen)Compensation Based on Audit
Certification Services (Millionsof yen)Non Audit Business-Based
Compensation (Millions of
yen)

48

-

34

-

20

-

39

-

68

-

73

-

1. Compensation for organizations belonging to the same network (Grantsonton) as Audit Certified Public Accountant, etc. (excluding A.
Not applicable.
U. Details of compensation based on Other's critical Audit certification services(End of Previous Consolidated Accounting Period)
Not applicable.
(Current consolidated fiscal year)
Not applicable.
E. Policy for Determining Audit Compensation
Our Audit compensation for Audit corporations is determined after consultation with Audit & Supervisory Board, taking into account Audit system, thenumber of days spent, and other factors.
O. Reasons for Audit & Supervisory Board's consent to Accounting Auditor's compensation, etc.
With regard to Accounting Auditor's Audit compensation, based on the Practical Guidelines on Collaboration with Accounting Auditor published by theJapanese Audit & Supervisory Board Members Association, we have discussed and agreed on the status of Audit's Details and Audit operations in light ofour size and business Details, and whether the basis for calculating the compensation estimates is appropriate.

- 92 -

(4)[Compensation of Directors and Audit & Supervisory Board Members]① Matters pertaining to Policy concerning the amount of Remuneration, etc. for officers or the determination of the methods for calculating such amount;
When determining the amount of remuneration, etc., for executives, we aim to effectively function as a reward for expanding business performance andenhancing corporate value in order for us to achieve sustainable growth. As for the level of remuneration, based on Comparison with other companies in thesame company and companies of the same size, we set a level commensurate with our business performance, and determine the amount of remuneration basedon the degree of contribution of the respective Director to business performance, etc., with the aim of linking it to a sound, efficient, and stable going concern.
The following is an Details of the Company's specific basic policy on executive compensation.
(i) Decisions on Details of remuneration, etc. for each Individuals of Director: Matters concerning Policy
1. Determination method of decision policy
The decision-making policy is deliberated and approved by the Compensation Advisory Committee and is determined by Board of Directors in respect ofDetails approved by the Compensation Advisory Committee. At Board of Directors held on December 25, 2023, we resolved to Policy Details of Director'scompensation by Individuals.
2. Summary of Details Decision-Making Policya. Basic Policy
The Company shall determine remuneration etc. for officers within a range resolved by the general meeting of shareholders, in comprehensive
consideration of results, will be determined based on the advice of the Compensation Advisory Committee, which is a voluntary advisory body,comprehensively considering Director performance, potential risks, the degree of responsibility for group management, and the degree of progress in themedium-term management plan. With regard to business execution Director, a certain percentage of compensation will be linked to performance and thedegree of contribution of the respective Director, so that it functions as an incentive for sustainable growth. This will lead to a sound, efficient, and stable
going concern.
The details of the basic policy on remuneration for executive directors are as follows:・It should contribute to the enhancement of our corporate value.
・The level of money and design that can attract and retain talented personnel.
・It should be designed to reflect our medium-and long-term management strategies and should be motivated to do so.
・To have transparency, fairness, and rationality for stockholders, employees, and other stakeholders, and to be determined through appropriate
Collateral processes.
・In addition to Basic remuneration, it shall be determined based on the compensation system designed by introducing Individuals assessmentlinked and performance-linked.
Policy (including a policy for the determination of time or conditions for granting remuneration, etc.) concerning the determination of the amount of
remuneration, etc. by Individuals of b. Basic remuneration (monetary remuneration)
Our Director's Basic remuneration (monetary remuneration) is based on a Basic remuneration table that takes into account the industry level, the levelof other companies, and the level of employee salaries comprehensively, depending on the position, responsibilities, and years of service. The monthly
remuneration is based on an equal amount in December.
Details of c. performance-linked remuneration, etc. and non-monetary remuneration, etc. and Policy (including a policy for the determination of time orconditions for granting remuneration, etc.) for determining the methods of calculating the amount or number
Remuneration other than Basic remuneration for our Director shall be a cash Bonus and a Equity securities remuneration Stock options, and thepayment or non-payment shall be determined according to the degree of achievement of the performance Target or ESG Target in the relevant period. In
addition, each Business Year evaluates the following 5 assessment items ("P.C.F.P.A." assessments) on a 5-point scale, depending on the degree ofachievement, and determines them upon consultation with the Compensation Advisory Committee, which is a voluntary advisory committee.
・Performance (Performance): Performance of own division
・Compliance (Compliance): Legal compliance, morals, etc.
・Foresight (Foresight): Ability to grasp and analyze the situation, and ability to plan business・Strength (Physical): Business promotion capabilities
・Affinity (Affinity): Ability to build relations
The specific amount or number of payments to be paid will be determined based on individual evaluations of each business execution Director, but
cash Bonus may be paid according to Target achievement status, etc. of the divisions in charge of each business execution Director, even if theperformance Target for the relevant fiscal year is not achieved. Performance indicators, or targets, shall be set each year and shall be reviewed in responseto changes in the environment as needed.
Equity securities compensation type Stock options shall be Class A Stock options exercisable after a certain period of time and Class B Stock options
exercisable at the time of retirement.
Policy for Determining the Ratio of the Amount of d. Basic remuneration, Performance-Based Compensation, etc. or Non-Monetary Compensation, etc.
to the Amount of Compensation, etc. by Individuals of Director
As a general rule, the percentage of Director compensation is as follows: "Director Basic remuneration: Cash Bonus: Class A Stock options: Class B
Stock options = 5:2:2:1."
The Compensation Advisory Committee, an advisory body, determines the amount of individual compensation. The Compensation Advisory Board will
Report the total amount to be paid at Board of Directors each time.

- 93 -

(ii) The matters concerning the delegation concerning the determination of remuneration, etc. according to Individuals of Director and the reasons why Board of
Directors determined that Details of remuneration, etc. according to Individuals pertaining to Current fiscal year was in line with the said Policy
The amount of individual compensation for Director is determined by the Compensation Advisory Committee authorized by the resolution of Ordinary
General Meeting of Shareholders based on Board of Directors's Individuals and other Details decisions and Policy determined by the resolution of Board of
Directors. The reason for delegating Director's authority to determine Individuals compensation to the Compensation Advisory Committee is to enhancetransparency and accountability in determining compensation.
As mentioned above, the Compensation Advisory Committee has decided on the amount of individual compensation for Director and has implemented
measures to Board of Directors to Report the total amount paid. As the amount of compensation by Director's Individuals has been determined through theseprocedures, our Board of Directors has determined that Policy of compensation by Individuals of Director related to Current fiscal year is in line with theabove-mentioned determination Individuals.
The members of the Compensation Advisory Committee are as follows.
Member Keiko Yamhira (Outside Director) Member Naohito Yamagishi (Outside Director)
Kaname Uchida (Outside Director) Member Yuko Kanamaru (Outside Director)
Kazuichi Shimada (Representative Director, Group CEO, Group COO, President and Executive Officers)(iii) Details of non-monetary compensation, etc.
Our non-monetary compensation shall be Equity securities compensation type Stock options, and in principle shall be issued when the performance in therelevant fiscal year achieves Target, etc. The number of stock-based compensation-type stock options granted or not paid will be determined based on theperformance achievement evaluation of each executive director. Target performance indicators are set each year and reviewed as appropriate in response tochanges in the environment.
Equity securities compensation type Stock options is Class A Stock options exercisable after a certain period of time and Class B Stock options exercisable
upon retirement.

(iv) Matters concerning the remuneration, etc. for Director and Audit: Matters concerning the provisions by resolution; andDirector's compensation limit is set at 600 Millions of yen per annum (excluding employee salaries) for up to 15 Director members as defined in the Articles
of Incorporation in the 45th Annual Shareholders' Meeting held at June 27, 2017. At the conclusion of this Ordinary General Meeting of Shareholders, thenumber of directors was 10 (including 3 in Outside Director). In addition, it was resolved at 49th fiscal year Annual Shareholders' Meeting held by June 25,
2021 that the amount of Stock options compensation will be no more than 600 Millions of yen per year. The number of Directors excluding Outside Director asof the closing of Ordinary General Meeting of Shareholders is 8.
The maximum amount of Audit & Supervisory Board Members' compensation was resolved to be 60 Millions of yen per year for the number of Audit &Supervisory Board Members (up to 5) as stipulated in the Articles of Incorporation under the extraordinary Ordinary General Meeting of Shareholders held on
July 16, 1999. At the closing of Ordinary General Meeting of Shareholders, there were 3 Audit & Supervisory Board Members (including 3 Outside Audit &Supervisory Board Members).

② Total amount of remuneration and Compensation by Type and Number of executives eligible for each Executive Category
Total amount of
Executive Category

Number of executives

Total (Millions of yen) of Compensation by Typeremuneration

eligible(Millions of yen)

Basic remuneration

229

128

60

41

-

2

73

73

-

-

-

7

Director(Excluding Outside Director)
Outside officers

Stock options

Bonus

Retirement bonuses(People)(NOTE)1. The amount paid by Director does not include the employee's portion of the employee's salary of Director.
2.Stock options is the amount recorded as expenses in Current fiscal year for Subscription rights to shares allocated, and the number of persons to be paid is 2
Director.
③ Total amount of remuneration of a person whose Total amount of remuneration is 100 million yen or more

Name Title

Kazuichi Shimada

Total amount of
remuneration(Millions of yen)

Executive

Corporate

Category

Category

165

Director(Millions of yen) of Compensation by Type
Basic remuneration

Stock options

90

44

Submitting
Company- 94 -

Bonus

Retirement bonuses

30-(5)[Equity securities's holdings]① Equity securities's Category standards and philosophy
Equity securities, which is held for the purpose of receiving Profit from changes in the value of Equity securities or dividends, is designated as investment
Equity securities, which is the net investment objective, and the rest is designated as investment Category, which is the objective other than the net
investment objective.

② Investment Equity securities held for purposes other than pure investment
a. Testing Details in Board of Directors, etc. regarding the appropriateness of holding Policy and the reasonableness of holding individual Brand
The main objective of our Equity securities holdings Policy is to facilitate business relationships. Based on the share price and other factors, we judge
whether to continue holding the shares and make a It continues its cross-shareholding if the cross-holding is reasonable..
The Board of Directors and other bodies examine cross-shareholdings in detail to determine if their purpose is appropriate and the benefits and risks
related to the cross-shareholdings are worth the capital cost. Summaries of these examinations are disclosed. is verified as appropriate.

b. Number of issues and Balance Sheet Amount Total
Number of issues(issue)Balance Sheet Amount Total amount(Millions of yen)

Unlisted stocks

9458

Shares other than unlisted shares

6

1,590

(Issues with an increase in the number of shares in the current fiscal year)
Not applicable.

(Issues whose number of shares decreased in the current fiscal year)
Number of issues(issue)Sale related to the decrease in thenumber of shares
Value Total Value (Millions of yen)

Unlisted stocks

2591

Shares other than unlisted shares--- 95 -

c. Specified investment shares and Equity securities for each Brand and Balance Sheet Amount of deemed holdings
Specified investment shares

Brand

Takara Leben Real Estate
Investment Corporation

Current fiscal year

Prior taxable year

Shares (Shares)

Shares (Shares)

Balance Sheet Amount(Millions of yen)

Balance Sheet Amount(Millions of yen)

14,385

14,385

1,461

1,288

141,000

141,000

4230

10,00010,00029

2243,28043,28033

21

20,00020,000

19

12

1,000

1,000

Outline of holding purpose, business alliance, etc.,
Quantitative holding effect And reasons for the increase in Holding of our shares
the number of shares

Tsukuba Bank, Ltd.

Musashino Bank, Ltd.

Concordia co., ltd.
Financial group

Resona Holdings Co., Ltd.

Tokyo Kiraboshi Financial
Group, Inc.
4

2

We are the sponsor of this corporation and hold it tomaintain and strengthen good relationships.

None

The Company conducts loans and other banking
transactions mainly for projects in Ibaraki Prefecture, andholds them in order to continue to secure financing
activities.

Yes

We have financed large-scale projects that extend over along period of time. The Company will continue to holdthese assets to ensure smooth financing activities.

Yes

The Company maintains these assets to ensure continued
smooth financing activities. engages in ongoing banking
transactions with a focus on project-based financing

None (Note 2)

We receive loans that are not constrained by area orbusiness, and we continue to hold them to ensure smoothfinancing activities.

None

We receive financing for a wide range of businesses, notlimited to the new condominium business, mainly inTokyo. The Company maintains these assets to ensure
continued smooth financing activities.

None (Note 2)(NOTE)1. Quantitative holding effect is not stated because it is difficult to measure. For details on the method of verifying the rationality of the holding purpose,
please refer to the "Method of verifying the rationality of holding a. and Policy and Details of verifying the appropriateness of holding individual
Brand at Board of Directors, etc."
2.The portfolio company does not own our Equity securities, but our affiliate owns our Equity securities.

③ Investment Equity securities held for net investment purposes
Not applicable.

- 96 -

V. [Status of Accounting]
1.Preparation of Consolidated Financial Statements and Financial Statements(1) Our consolidated financial statements have been prepared in accordance with the Regulations Concerning Terminology, Forms and Preparation Methods ofConsolidated Financial Statements (Ministry of Finance Ministerial Order No. 28, 1976).

(2) Our financial statements have been prepared in accordance with the Regulations on Terminology, Forms and Preparation Methods of Financial Statements(Ordinance of the Ministry of Finance No. 59 of 1963; hereinafter referred to as the "Regulations on Financial Statements, etc.").
In addition, we are a company submitting special financial statements and prepare financial statements in accordance with the provisions of Article 127 of theOrdinance on Financial Statements, etc.

2.About Audit Certification
Pursuant to Article 193-2 I of the Financial Instruments and Exchange Law, we have received Audit from Grant Thornton Taiyo LLC. on the consolidated
financial statements of Fiscal year (from April 1, 2023 to March 31, 2024) and Business Year (from April 1, 2023 to March 31, 2024).

3.Special Efforts to Ensure Appropriateness of Consolidated Financial Statements
We make special efforts to ensure the appropriateness of our consolidated financial statements. Specifically, the Company joins the Financial AccountingStandards Corporation and participates in seminars and other events in order to establish a system that enables it to appropriately understand Details of
accounting standards, etc., or to respond appropriately to changes in accounting standards, etc.

- 97 -

1[Consolidated Financial Statements](1)[Consolidated Financial Statements]①[Consolidated Balance Sheets](Millions of yen)
End of Previous Consolidated Accounting
Period(AS of March 31,2023)

Current Consolidated Fiscal Year(AS of March 31,2024)

AssetsCurrent assets
Cash and deposits※4,※5

Notes, accounts receivable-trade and contract assets

47,872

※4

3,477

※1,※4

※1,※4,※5Real estate for sale

※4,※6Power generation facilities for sale

34,147※6

Real estate for sale in progress

47,381※4,※6

76,598

3,375

※6

65

82,713
0

40

※5,※6

17,415

17,053△275△277

188,728

191,937

Allowance for doubtful accounts
Total current assets

8,335

※4,※6

※4,※6

Costs incurred on uncompleted contracts
Other

42,740

Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures (net)33,98433,724△5,104△5,969※4,※6

Machinery and equipment
Accumulated depreciation
Machinery, equipment and vehicles, net

28,879※4,※627,75557,09663,287△8,390△10,834※4,※5,※6

48,705Tools, furniture and fixtures※4,※6

52,453

1,126

Accumulated depreciation

1,265

△811

Tools, furniture, and fixtures, net

※4,※6

Land

※4,※5,※6

315

41,394

Leased assets
Accumulated depreciation
Lease assets, net

△966
※4,※6
※4,※6

345

345

△86

△118

258

Construction in progress※4,※5,※6Total property, plant and equipment

299

33,7595,808

125,362

226
※4,※6

3,264

117,759

Intangible assets
Goodwill

3,918

Other

※4,※6

Total intangible assets

4,457

3,420
※4

4,643

8,376

8,063

2,368

2,597

Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other

※3,※6

830

200

4,744

4,258

11,205※3,※6

12,563

Allowance for doubtful accounts△2△0

Total investments and other assets

19,145

19,619152,884

145,441

Total fixed assets
Deferred assets
Total assets- 98 -

56

68

341,669

337,447

(Millions of yen)
End of Previous Consolidated Accounting
Period(AS of March 31,2023)

Current Consolidated Fiscal Year(AS of March 31,2024)

Liabilities
Current liabilities
Notes and accounts payable-trade

16,342

Short-term borrowings※4,※5

92,069※4

25,997

Current portion of bonds payable

27,119※4

25,621※4

44,102

190

Current portion of long-term loans payable
Lease obligations
Income taxes payable
Advances received

※2

2,806

34

34

4,318

3,571

10,197※2

9,167

Bonus Allowance

699

Compensation for completed construction Allowance

551

850
614

Other

11,755

8,648

Total current liabilities

162,157

122,537

Fixed liabilities
Long-term loans payable※4

104,828※4

130,673

Bonds payable

4,015

7,008

Lease obligations

249

214

Directors' and corporate auditors' retirement benefits Allowance

135

100

1,100

1,314

Liabilities related to retirement benefits
Asset retirement obligations

182

200

Deferred tax liabilities

2,509

2,489

Other

1,348

1,239

Total Fixed liabilities

114,369

143,240

276,527

265,778

Capital stock

4,819

4,819

Capital surplus

4,820

3,375

Retained earnings

55,971

61,514

Treasury stock△4,174△4,066

Total shareholders' equity

61,436

65,643

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Net unrealized gains on available-for-sale securities

△71

127

Foreign currency translation adjustments

3△36

Remeasurements of defined benefit plans

8△17

Total accumulated other comprehensive income
Subscription rights to shares

△59

73

220

277

Non-controlling interest

3,544

5,674

Total net assets

65,142

71,669341,669

337,447

Total liabilities and net assets- 99 -

②[Consolidated Statements of Income and Consolidated Statements of Comprehensive income][Consolidated Statements of Income](Millions of yen)
End of Previous Consolidated Accounting
Period(From April 1, 2022
To 31 March, 2023)

Current Consolidated Fiscal Year
(From April 1, 2023
To: 31 March, 2024)

Net sales※1

153,472※1

185,194

Cost of sales※2

121,763※2

144,603

Gross profit

31,708Selling, general and administrative expenses※3

Operating income

24,677
7,030

40,590※3

25,133
15,457

Non-operating income
Interest income

28

34

Dividend income

233

174

Commission received

108

122

Income from insurance claim

38

228

Gain from equity method investment-238

Miscellaneous income
Total non-operating income

599

395

1,008

1,193

2,080

2,795

Non-operating expenses
Interest expenses
Losses from equity method investment

219-

Arrangement fee

165

646

Miscellaneous expenses
Total non-operating expenses
Ordinary income

540

223

3,005

3,666

5,033

12,984601-

Extraordinary income
Gain on subsequent acquisitions
Gain on sales of Fixed assets

97

-

-

145

-

563

698

709

※4

Gain on sales of investment securities
Gain on sales of stock of affiliates
Total extraordinary income
Extraordinary loss
Loss on sales of Fixed assets※5

Impairment loss

132

※6

48

※6

508

Office relocation expenses

26

Loss on sales of shares of associated company

-

14

206

554

Income before income taxes and minority interests from silent partnerships

5,525

13,139Distribution of loss in partnership

△178

147

Income before income taxes

5,703

12,991

4,708

4,470

Extraordinary losses Total

Income taxes, inhabitant taxes and business taxes
Income tax adjustments

31△3,451

244

Total income and other taxes

1,257

4,714

Net income

4,445

8,276

Net income (△) attributable to non-controlling interests

△138

98

Net income attributable to owners of parent

4,584

8,178

- 100 -

[Consolidated Statements of Comprehensive Income](Millions of yen)
End of Previous Consolidated Accounting
Period(From April 1, 2022
To 31 March, 2023)
Net income

4,445

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)
8,276

Other comprehensive income
Net unrealized gains on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans

△619

198

3

△40

23

Total other comprehensive income

△25
133

△593

※

3,852

8,409

Comprehensive profit attributable to owners of the parent

3,990

8,311

Comprehensive income attributable to noncontrolling interests

△138

98

※

Comprehensive income(Comprising)- 101 -

③[Consolidated Statements of Changes in Shareholders' equity and Others]
End of Previous Consolidated Accounting Period (From April 1, 2022 to 31 March, 2023)(Millions of yen)
Shareholders' equity
Capital stock
Balance at the beginning of the period

Capital surplus
4,819

Retained earnings
4,817

Treasury stock

53,395

Total shareholders' equity
58,575△4,456

Change during the year
Dividend of surplus△1,963△1,963

Net income attributable to owners ofparent

4,584

4,584

Change due to new consolidation

△44

△44

Disposal of Treasury stock

3

282

285

Net changes of items other thanShareholders' equity
Total changes of items during the periodTerm end Balance

-

3

2,575

282

2,860

4,819

4,820

55,971△4,17461,436

Accumulated other comprehensive income

Balance at the beginning of the period

Net unrealized
gains onavailable-for-salesecurities

Foreign currencytranslation
Adjustment accountRemeasurementsof defined benefit
plans

For Other
Comprehensive
incomeAccumulated
Total

548

0

△14

534

Subscription rights tosharesNon-controllinginterest

197

294

Total net assets

59,601

Change during the year
Dividend of surplus△1,963

Net income attributable to owners ofparent4,584

Change due to new consolidation△44

Disposal of Treasury stock285

Net changes of items other thanShareholders' equity

△619

3

23

△593

22

3,250

2,680

Total changes of items during the period

△619

3

23

△593

22

3,250

5,540

Term end Balance

△71

3

8

△59

220

3,544

65,142- 102 -

Current Consolidated Fiscal Year (From April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders' equity
Capital stock
Balance at the beginning of the period

Capital surplus
4,819

Retained earnings
4,820

Treasury stock

55,971

Total shareholders' equity
61,436△4,174

Change during the year
Dividend of surplus△2,635△2,635

8,178

8,178

1

1

Net income attributable to owners ofparentChange due to exclusion fromconsolidation
Increase (decrease) in equity due tocapital increase of Consolidated
subsidiaries△1,301△1,301

Change in treasury shares of parent
arising from transactions with noncontrolling interests

△174

△174

Disposal of Treasury stock

31

108

140

Net changes of items other thanShareholders' equity
Total changes of items during the periodTerm end Balance-△1,444

5,543

108

4,207

4,819

3,375

61,514△4,066

65,643

Accumulated other comprehensive income

Balance at the beginning of the period

Net unrealized
gains onavailable-for-salesecurities

Foreign currencytranslation
Adjustment accountRemeasurementsof defined benefit
plans

For Other
Comprehensive
incomeAccumulated
Total

△71

3

8

△59

Subscription rights tosharesNon-controllinginterest

220

3,544

Total net assets

65,142

Change during the year
Dividend of surplus△2,635

Net income attributable to owners ofparent8,178

Change due to exclusion fromconsolidation

1

Increase (decrease) in equity due tocapital increase of Consolidated
subsidiaries△1,301

Change in treasury shares of parent
arising from transactions with noncontrolling interests△174

Disposal of Treasury stock140

Net changes of items other thanShareholders' equity

198

△40

△25

133

56

2,129

2,319

Total changes of items during the period

198

△40

△25

133

56

2,129

6,526

Term end Balance

127

△36

△17

73

277

5,674

71,669- 103 -

④[Consolidated Statements of Cash Flows](Millions of yen)
End of Previous Consolidated Accounting
Period(From April 1, 2022
To 31 March, 2023)

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)

Cash flow from operating activities
Income before income taxes

5,703

12,991

Depreciation and amortization

3,020

5,370

Impairment loss

48

508

Goodwill depreciation

390

509

Increase (decrease) in Allowance (decrease in △)

99

179

141

174

△262

△209

Increase (decrease) in Liabilities related to retirement benefits (decrease in△)Interest income and Dividend income
Charges for stock compensation

327

196

2,080

2,795

△65

△4,892△10,50915,692

Interest expenses
Decrease (increase) in notes and accounts receivable-trade (increase in △)Decrease (increase) in inventories (increase in △)Increase (decrease) in notes and accounts payable-trade (decrease in △)758

10,934

Increase (decrease) in advances received (decrease in △)2,848△1,029

Other

△741

1,736

Subtotal

3,839

44,957

Interest and dividend received

256

192

Interest expenses paid

△2,109△2,695

Income taxes paid

△2,709△5,676△722

36,777

Payments into time deposits

△14

△35

Proceeds from withdrawal of time deposits

150-

Purchase of Property, plant and equipment△19,349△25,589

Cash flow from operating activities
Cash flow from investing activities

Proceeds from sale of Property, plant and equipment

1,933

1,271

Purchase of Intangible assets△189△1,895-△604

Purchase of stocks of subsidiaries and affiliates
Payments for long-term loans

△450

-

-

380

△1,628△0

Proceeds from collection of Long-term loans receivable
Purchase of investment securities
Proceeds from sale of investment securities
Purchases of subsidiary stock due to changes in the scope of consolidation

※3

253

0

△26,941

△518

-

445

Proceeds from sales of Investments in subsidiaries resulting in change inscope of consolidation
Other

△117

215

△46,354△26,329

Net change in Short-term borrowings (decrease in △)74,783△67,503

Proceeds from long-term debt

97,853

124,207△106,935△75,498

Cash flow from investing activities
Cash flow from financing activities

Repayment of Long-term loans payable
Proceeds from issuance of common Bonds payable
Payments for redemption of Bonds payable

150

5,745

△2,183△190

Repayments of lease obligations
Payments for reimbursement to non-controlling interests
Proceeds from share issuance to non-controlling shareholders
Cash dividends paid

△35

△34

-

△4,768-

5,761△1,962△3,161Dividends paid to non-controlling interests

△140

△22

Cash flow from financing activities

61,531△15,464

Increase (decrease) in cash and cash equivalents (decrease in △)14,454△5,017

Cash and cash equivalents at beginning of term

32,69347,148-△246

Decrease in Cash and cash equivalents due to exclusion of subsidiaries fromconsolidation
Cash and cash equivalents's Term end Balance※1- 104 -

47,148※1

41,884

[Notes](Significant Items Forming the Basis for Preparation of Consolidated Financial Statements)
1.Scope of consolidation(1) 27 companies in Consolidated subsidiaries
Principal Consolidated Subsidiaries
Takara Leben Co., Ltd.
Leben Community, Inc.
Leben Home Build Co., Ltd.
Takara Leben Realnet Co., Ltd.
Leben Zestock Co., Ltd.
LebenTrust Co., Ltd.
Takara Leben(Thailand)Co.,Ltd.
Takara Asset Management Co., Ltd.
MIRARTH Real Estate Investment Advisor Co., Ltd.
On March 29, 2024, Takara PAG Real Estate Investment Advisor Co., Ltd. changed its name to MIRARTH Real Estate Investment Adviser Co., Ltd.
MIRARTH Green Tech Co., Ltd. and Nobeoka Biomass Power Plant LLC and 2 other companies have been included in the scope of consolidation fromCurrent Consolidated Fiscal Year due to the acquisition of Equity securities and other factors.
Leben Energy No. 2 LLC and 4 other companies have been excluded from the scope of consolidation from Current Consolidated Fiscal Year due to thesale of our holdings and other factors.

(2) 4 companies with no Consolidated subsidiaries
Names of major non-consolidated subsidiaries
RS LLC.
SDX LLC.
LS Okayama Tsuyama LLC(Reasons for exclusion from the scope of consolidation)
Non-consolidated subsidiaries is excluded from the scope of consolidation because Total assets, Net sales, net income or loss (amount corresponding toequity interest) and Retained earnings (amount corresponding to equity interest) have no material impact on the consolidated financial statements.

(3) Special purpose companies subject to disclosure
Not applicable.

2.Application of the equity method(1) Number of equity-method affiliates: 5Name of the principal company using equity method accounting
Minato LLCHTLC HOLDING JOINT STOCK COMPANY and 2 other companies have been excluded from the scope of application of the equity method fromCurrent Consolidated Fiscal Year due to the sale of our holdings and other factors.

(2) Non-consolidated Subsidiaries and associates not accounted for by the equity method: 5Names of non-consolidated Subsidiaries and associates not accounted for by the equity method
RS LLC.
SDX LLC.
LS Okayama Tsuyama LLC(Reason for not applying the equity method)
Non-consolidated Subsidiaries and associates that are not accounted for by the equity method are excluded from the scope of application of the equity
method because their impact on the consolidated financial statements is immaterial even if they are excluded from the scope of application of the equity
method in terms of net income (amount corresponding to equity interest) and Retained earnings (amount corresponding to equity interest), etc.

- 105 -

3.Matters Relating to Business Year of Consolidated subsidiaries(1) The fiscal year-end of Consolidated subsidiaries is as follows.
15 on the last day of March, 1 on the last day of May, 1 on the last day of August, 1 on the last day of September, 2 on the last day of November, and 5 on thelast day of December,End of January 2 companies(2) In preparing the consolidated financial statements, for Consolidated subsidiaries whose closing date differs from the consolidated closing date, the financial
statements that have been provisionally settled in the same manner as the consolidated closing date are used. Significant transactions occurring between theprovisional closing date and the consolidated closing date are adjusted for consolidation.

4.Accounting and Policy matters(1) Valuation standards and methods for significant Assets① Marketable securities
a. Held-to-maturity debt securities
Stated at amortized cost (straight-line method).
b. Other in Securities
Other than shares, etc. without market priceStated at market value (all valuation differences are accounted for using the direct Net assets method, and the cost of securities sold is calculatedusing the moving-average method).
Stocks, etc. without market priceStated at cost determined mainly by the moving-average method② Inventory Assets
Stated at cost determined by the specific identification method. (The carrying amount on the balance sheet is written down to reflect the decline inprofitability.)(2) Depreciation methods for significant depreciation Assets① Property, plant and equipment (excluding Leased assets)
Tangible assets are stated at cost. However, Buildings (excluding facilities attached to Buildings) acquired on or after April 1, 1998, and Buildings(excluding facilities attached to Structures) acquired on or after April 1, 2016: The straight-line method is used.
Power plants owned by consolidated subsidiaries are depreciated using the straight-line method.
Useful life for primary assets is as follows:
Buildings and structures 3 to 50 years
Machinery and equipment 2 to 25 years② Intangible assets (excluding Leased assets)
Software for internal use is amortized using the straight-line method over the estimated useful life of 5 years.
③ Leased assets
Leased assets related to finance lease transactions with ownership transfer
The same depreciation methods applied to self-owned Fixed assets are used.
Leased assets under finance leases that do not transfer ownership
The straight-line method is used with the lease period as the useful life and the residual value as zero.
④ Long-term Prepaid expenses
The straight-line method is used.

- 106 -

(3) Accounting standards for significant Allowance① Allowance for doubtful accounts
Allowance for doubtful accounts is provided at an amount equal to Actual rate for ordinary receivables and an amount equal to the estimated uncollectible
amount for certain receivables such as doubtful receivables based on the individual collectability.
② Bonus Allowance
In order to provide for the payment of bonuses to employees, the Company records an estimated amount to be paid in the current fiscal year.
③ Compensation for completed construction Allowance
In order to provide for losses and compensation service expenses arising from defects after delivery of company-constructed buildings, etc., the Company
records Actual for repair expenses and other expenses related to previous company-constructed buildings, etc.
④ Directors' and corporate auditors' retirement benefits Allowance
To prepare for the payment of Retirement bonuses by directors, the amount required to be paid under End of the consolidated financial year is recorded inaccordance with the Directors' Retirement bonuses Regulations (internal regulations).

(4) Accounting method for retirement benefits
Liabilities related to retirement benefits is provided for employees' retirement benefits based on the estimated amount at the end of the fiscal year underreview.
① Method of attributing expected retirement benefits to periods
In calculating retirement benefit obligations, the benefit formula basis is used to attribute estimated retirement benefits to the time until End of theconsolidated financial year.
② Accounting for Differences in the mathematical calculations and Historical Service cost
Previous Service cost is amortized as incurred by the straight-line method over a certain period (mainly 6 years) which is shorter than the averageremaining years of service of the employees.
Differences in the mathematical calculations is amortized on a straight-line basis over a certain number of years (mainly 6 years) which are shorter than
the average remaining years of service of the eligible employees at the time of accrual of the consolidated Fiscal year from the following consolidated Fiscal
year.
③ Accounting policies for Unrecognized actuarial loss and unrecognized historical Service cost
For Unrecognized actuarial loss and unrecognized prior Service cost, the tax effects are recorded in Remeasurements of defined benefit plans ofAccumulated other comprehensive income in Net assets, after adjusting for the tax effects.
④ Adoption of simplified method for small enterprises, etc.
Certain Consolidated subsidiaries adopt a simplified method for calculating Liabilities related to retirement benefits and Retirement benefit expenses
whereby the retirement benefit obligation equals the amount that would be required if all eligible employees voluntarily terminated their employment.

(5) The standards for recognition of significant revenues and expenses
Details of the principal performance obligations and the normal timing of recognizing revenue in our principal businesses are as follows:① Real Estate Businessa. New condominium business
The new condominium business sells each condominium unit to general consumers and is obligated to deliver the property pursuant to a real estate sales
contract with a customer. Such performance obligations are satisfied at a point in time when the property is delivered and earning is recorded at the time ofsuch delivery.
The transaction price is determined by the real estate sales contract, and in such contracts, the delivery date is generally the same as the date when theentire amount of the sale price is received. Therefore, the payment of the sale price is received at the same time as the delivery of the property.
b. Securitization business
The securitization business is a business of acquiring rental residential properties and office buildings, increasing Assets value through leasing andrenovation, and then selling them to operating companies, etc.
The performance obligations and the timing of satisfaction thereof, the method of determining transaction prices, and the timing of revenue recognition in
the Liquidation Business are the same as in the new condominium business described above.
c. Property Management Business
The Real Estate Management segment is engaged in the management of condominiums, and is obligated to provide outsourced services based on contract
Details with customers. Such performance obligations are satisfied at the time the services are performed and earning is recorded at that time.

- 107 -

② Energy Business
Energy Business is a business that derives revenues from the sale of operated power generation facilities and revenues from the sale of power generation
facilities.
The timing of performance obligations and their satisfaction, the methods of determining transaction prices, and the timing of revenue recognition in theproceeds from the sale of the active power generation Facilities are the same as in the new condominium business described above. In addition, revenue fromthe sale of power at power generation facilities is recorded primarily at the time of delivery to customers pursuant to power purchase agreements.
③ Asset Management Business
Asset Management Business is a business that provides asset management services to Takara Leben Real Estate Investment Corporation, etc., and is
obligated to conduct operations based on contracts with customers. Such performance obligations are satisfied over a period of time over which services are
rendered and earning is accrued based on the progress of the satisfaction of performance obligations. In addition, the performance obligations of operations
related to the acquisition and transfer of investment Assets are satisfied at a point in time when they are accepted or delivered, and earning is recorded at thetime of such acceptance or delivery.
④ Other Businesses
Other Businesses is primarily a construction subcontracting business and is obligated to perform construction work pursuant to building construction
contracts with customers. Under this Buildings contract, Assets is created or accreted by the performance of the Group's obligations, and the customers
control Assets as Assets is created or accreted. As a result, the performance obligation is satisfied over a certain period of time, and the performanceobligation is satisfied as the construction progresses over the contract period. Accordingly, in the Construction Subcontracting Business, revenues arerecorded based on the progress of the construction work. Progress is measured using the input method based on the cost incurred as it is considered that thecost incurred contributes and is generally proportional to an entity's progress in satisfying performance obligations.
The transaction price is determined by Buildings contract. In this contract, the delivery date is usually the same as the receipt of the entire amount of thecontract price. Therefore, the contract price is paid at the same time as Buildings delivery.
(6) Significant hedge accounting method① Hedge accounting method
Interest rate swaps qualify for special treatment and, therefore, are accounted for using special treatment.
② Hedging instruments and hedged items
Hedging instruments: Interest rate swaps
Hedging items... Debt
③ Hedging Policy
The Company and its consolidated subsidiaries enter into interest rate swaps to hedge interest rate exposures on borrowings. These are Policy financial
instruments that are not used for speculative purposes.
④ Method for evaluating effectiveness of hedging
The evaluation of effectiveness is omitted for interest rate swaps that are subject to special treatment.

(7) Amortization method and period of Goodwill
Amortization of Goodwill is amortized on a straight-line basis over a period not exceeding 2015 years.
However, insignificant amounts are amortized in a lump sum in the fiscal year of occurrence.

(8) Scope of funds in consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, deposits that can be withdrawn on demand, and short-term investments that are readily convertible to
known amounts of cash and are exposed to insignificant risk of changes in value and Maturity date maturing in 3 months or less at the time of purchase.

(9) Other Significant Matters for the Preparation of Consolidated Financial Statements
Accounting for consumption tax
Non-deductible consumption taxes related to assets are expensed in the period in which they are incurred.

- 108 -

(Critical Accounting Estimates)
・Fixed assets's Impairment loss
(1) Amount recorded as Impairment loss in the consolidated financial statements of Current Consolidated Fiscal YearEnd of Previous

Current Consolidated

Consolidated

Fiscal Year

Accounting Period
Buildings and structures
Machinery and equipment
Land
Total

24 Millions of yen--

13 Millions of yen

24 Millions of yen

494 Millions of yen

48 Millions of yen

508 Millions of yen(2) Details of Significant Accounting Estimates for Identified Items
Our group groups each property individually as the smallest unit that generates cash by using assets.
As stated in "(Consolidated Statements of Income) ※6 Impairment loss" in Current Consolidated Fiscal Year, Impairment loss 508 Millions of yen is recognized
as the recoverable amount of the appraised value, etc. or value in use by a real estate appraiser. The appraisal value, etc. is calculated based on the business plan ofeach asset group, comprehensively considering the surrounding environment, etc. The value in use is calculated based on future cash flows. Such future cash flows
are estimated based on the income and expenditure plan approved by Be related companies' Executive Committee, etc. In estimating revenue and expenditure,
Energy Business is calculated based on the projected volume of electricity sold and the unit price of electricity sold, as well as the operational streamlining throughthe expansion of business through medium-to long-term Energy Business strategies. For Assets with a negative value in use based on future cash flows, therecoverable amount is valued at zero.
If the assumptions used in these estimates were to need to be revised due to uncertain future changes in economic conditions or other factors, additional Impairment
loss (Extraordinary loss) may occur in the consolidated financial statements after the next consolidated Fiscal year.
(Changes in Presentation Method)(Consolidated Profit and Loss Statement)
In End of Previous Consolidated Accounting Period, "Insurance proceeds received," which had been included in "Miscellaneous income" under "Nonoperating income," exceeded 10/100 of the total amount of Non-operating income, and is now presented separately from Current Consolidated Fiscal Year. To
reflect this change in presentation, the consolidated financial statements of End of Previous Consolidated Accounting Period have been reclassified.
Consequently, 637 Millions of yen, which was presented in "Miscellaneous income" under "Non-operating income" in End of Previous Consolidated
Accounting Period's consolidated statements of income, has been reclassified as "Insurance income" 38 Millions of yen and "Miscellaneous income" 599
Millions of yen.

In End of Previous Consolidated Accounting Period, the "Arrangement Fee" included in the "Miscellaneous expenses" of "Non-operating expenses"
exceeded 10/100 of the total amount of Non-operating expenses, so it was listed separately from Current Consolidated Fiscal Year. To reflect this change inpresentation, the consolidated financial statements of End of Previous Consolidated Accounting Period have been reclassified.
Consequently, the 705 Millions of yen presented in "Miscellaneous expenses" under "Non-operating expenses" in End of Previous Consolidated Accounting
Period's Consolidated Statements of Income has been reclassified as 165 Millions of yen of "Arrangement Fee" and 540 Millions of yen of "Miscellaneous
expenses."(Additional Information)(Agreement on Compensation)
On March 27, 2024, we entered into a sponsoring agreement with the assignee of Generation Facilities whereby we agreed to indemnify us for Be related
damage, loss and expenses caused by the snow disaster of the transferred Generation Facilities. Certain items for which it is difficult to reasonably estimate
their effects at this time are not reflected in the consolidated financial statements.

- 109 -

(Notes to Consolidated Balance Sheets)※1 The amounts of Notes, accounts receivable-trade and contract assets receivables and Contract assets arising from contracts with customers are as follows:
End of Previous Consolidated Accounting Period(March 31,2023)
Accounts receivable

98 Millions of yen

Contract assets

3,379

Current Consolidated Fiscal Year
(March 31,2024)
115 Millions of yen
8,220※2 Of Advances received, the amount of Contractual liabilities is as follows:
End of Previous Consolidated Accounting Period(March 31,2023)
Contractual liabilities

10,172 Millions of yen

Current Consolidated Fiscal Year
(March 31,2024)
8,994 Millions of yen※3 Items related to non-consolidated Subsidiaries and associates are as follows.
End of Previous Consolidated Accounting Period(March 31,2023)
Investments and other assets Other (non-consolidated subsidiaries)

3,962 Millions of yen

And Investments in affiliates)

Current Consolidated Fiscal Year
(March 31,2024)
4,942 Millions of yen※4 Assets pledged as Collateral and corresponding liabilities are as follows:(1)Assets pledged as CollateralEnd of Previous Consolidated Accounting Period(March 31,2023)
Cash and deposits

Current Consolidated Fiscal Year
(March 31,2024)

3,341 Millions of yen

2,226 Millions of yen

95

200

Real estate for sale

28,111

26,918

Real estate for sale in progress

73,20963,755

Buildings and structures

6,359

23,616

Machinery and equipment

5,304

44,170Notes, accounts receivable-trade and contract assets

Tools, furniture and fixtures

4

78

Land

20,94918,468Construction in progress

2,229

2,002

Other (Intangible assets)

232

3,700

139,836

185,138

Total(2)Debt to the above
End of Previous Consolidated Accounting Period(March 31,2023)
Short-term borrowings

Current Consolidated Fiscal Year
(March 31,2024)

89,492 Millions of yen

22,788 Millions of yen

Current portion of long-term loans payable

21,61735,825Long-term loans payable

94,471

118,832

205,581

177,446

Total(Non-recourse loans)(74,004)- 110 -(-)

※5 Non-recourse loan
Nonrecourse loans are as follows:
End of Previous Consolidated Accounting Period(March 31,2023)
Non-recourse Short-term borrowings

Current Consolidated Fiscal Year
(March 31,2024)

74,004 Millions of yen

Total-Millions of yen

74,004-

Assets corresponding to non-recourse loans are as follows:
End of Previous Consolidated Accounting Period(March 31,2023)
Cash and deposits

Current Consolidated Fiscal Year
(March 31,2024)

3,209 Millions of yen

Notes and accounts receivable
Other (Current Assets)
Machinery and equipment
Land
Construction in progress
Total-Millions of yen

250

-

13

-

45,324

-

860

-

0

-

49,658-※6 Change in holding purpose of Assets
End of Previous Consolidated Accounting Period (March 31,2023)
Power generation facilities for sale 1,024 Millions of yen was transferred to Machinery and equipment 1,024 Millions of yen in Current Consolidated Fiscal
Year due to a change in the holding purpose from resale to Assets for business use.
In addition, as a result of the change in the holding purpose from development and leasing to resale, a portion of the real estate owned was transferred toCurrent Consolidated Fiscal Year as follows: Buildings and structures 5,107 Millions of yen, Tools, furniture and fixtures 32 Millions of yen, Land 8274
Millions of yen, Construction in progress 2,254 Millions of yen, and Land Lease Right 14 Millions of yen ("Other" in Intangible assets), and Software 0
Millions of yen ("Other" in Intangible assets) to Real estate for sale and Real estate for sale in progress. Certain of Assets were sold in Current Consolidated
Fiscal Year and 6,765 Millions of yen of the 15,308 Millions of yen transferred to Real estate for sale were recorded in Cost of sales.
In addition, as part of Mega solar power generation Facilities was changed to held for resale, Current Consolidated Fiscal Year transferred Prepaid expenses 7
Millions of yen ("Other" of Current assets), Machinery and equipment 2,579 Millions of yen, Land 60 Millions of yen, Construction in progress 525 Millions ofyen, and long-term Prepaid expenses 235 Millions of yen ("Other" of Investments and other assets) to Power generation facilities for sale. Certain of Assets
were sold in Current Consolidated Fiscal Year and 2,505 Millions of yen of the 3408 Millions of yen transferred to Power generation facilities for sale wererecorded in Cost of sales.

Current Consolidated Fiscal Year (2024 March 31)
As a result of the change in the holding objective from resale to business Assets, a portion of the real estate owned was transferred to Current Consolidated
Fiscal Year as follows: Real estate for sale in progress 7 Millions of yen, Power generation facilities for sale 85 Millions of yen to Buildings and structures 3
Millions of yen, Land 4 Millions of yen, and Machinery and equipment 83 Millions of yen, and long-term Prepaid expenses 2 Millions of yen ("Other" in
Investments and other assets).
In addition, the Company transferred to Current Consolidated Fiscal Year and Buildings and structures 6,031 Millions of yen, Tools, furniture and fixtures 22
Millions of yen, Land 13,343 Millions of yen, and Construction in progress 1,795 Millions of yen of its real estate holdings in connection with the Company's
change in the purpose of holding real estate from development/leasing to resale. Certain of Assets were sold in Current Consolidated Fiscal Year and 10,882
Millions of yen of the 20,342 Millions of yen transferred to Real estate for sale were recorded in Cost of sales.
In addition, as a result of the change in the intent to hold a portion of Mega solar power generation Facilities for resale, Current Consolidated Fiscal Year has
transferred Buildings and structures 30 Millions of yen, Machinery and equipment 2,576 Millions of yen, and long-term Prepaid expenses 11 Millions of yen("Other" in Investments and other assets) to Power generation facilities for sale. Assets was sold in Current Consolidated Fiscal Year and 2,617 Millions of yen
was recorded as Cost of sales.

- 111 -

7 Contingent liabilities
Guarantees for loans from financial institutions
End of Previous Consolidated Accounting Period(March 31,2023)
Joint and several guarantee obligations to financial institutions,etc. until the completion of the registration of the establishmentof mortgages on our group customer housing loans

Current Consolidated Fiscal Year
(March 31,2024)

15,420 Millions of yen

11.700 Millions of yen

Minato Vietnam Co., Ltd.

112

647

WISE ESTATE 3 Co., Ltd.

1,615

524

WISE ESTATE 8 Co., Ltd.

246

367

WISE ESTATE 10 Co., Ltd.
Total

237

489

17,632

13,7308 In order to raise working capital efficiently, we have entered into overdraft and loan commitment contracts with 63 Financial institutions (68 End of Previous
Consolidated Accounting Period). Balance of undisbursed borrowings at the end of the consolidated fiscal year under these contracts are as follows:
End of Previous Consolidated Accounting Period(March 31,2023)
Maximum overdraft amount and loans Commitments
Total amount
Loan balance
Net amount- 112 -

Current Consolidated Fiscal Year
(March 31,2024)

85,033 Millions of yen

84,333 Millions of yen

51,10553,89433,92830,439(Consolidated Statements of Income)※1 Revenue arising from contracts with customers
For Net sales, Category of Revenue arising from contracts with customers and other revenues is not presented. The amounts of Revenue arising from contracts
with customers are described in the Consolidated Financial Statements "Notes Matters (Revenue Recognition) 1. Breakdown of Revenue arising from contracts
with customers."※2 Term end Inventory is the amount after writing down the book value due to a decline in profitability, and the following loss on valuation of inventory Assets is
included in Cost of sales.
End of Previous Consolidated Accounting Period(From April 1, 2022
To 31 March, 2023)

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)△1,032 Millions of yen

16 Millions of yen※3 The approximate percentages of expenses in selling expenses are End of Previous Consolidated Accounting Period 34%, Current Consolidated Fiscal Year 34%,
and the approximate percentages of expenses in general and administrative expenses are End of Previous Consolidated Accounting Period 66% and Current
Consolidated Fiscal Year 66%.
Major items and amounts of Selling, general and administrative expenses are as follows.
End of Previous Consolidated Accounting Period(From April 1, 2022
To 31 March, 2023)

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)

Advertising expenses

5,352 Millions of yen

5,336 Millions of yen

Promotion expenses

2,218

2,398

Salary allowance

4,333

4,536

Bonus Allowance provision

915

1,082

Retirement benefit expenses

186

213

Provision for Allowance of directors' retirement benefits

27

26

Allowance for doubtful accounts provision-

1※4 Details of Gain on sales of Fixed assets is as follows:
End of Previous Consolidated Accounting Period(From April 1, 2022
To 31 March, 2023)
Buildings and structures

45 Millions of yen

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)-Millions of yen

Tools, furniture and fixtures

6

-

Land

45

-

97

-

Total

※5 Details of Loss on sales of Fixed assets is as follows:
End of Previous Consolidated Accounting Period(From April 1, 2022
To 31 March, 2023)
Land

132 Millions of yen
Total

132

- 113 -

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)-Millions of yen-

※6 Impairment loss
End of Previous Consolidated Accounting Period (From April 1, 2022 to 31 March, 2023)
Our group recorded Impairment loss (48 Millions of yen) for the following Assets or Assets group in Current Consolidated Fiscal Year due to the decrease inprofitability of Hotel, etc.
Application
Hotel

Type
Land and structures

Location
Nakagyo-ku, kyoto

Amount (Millions of yen)
48

Total

48

The breakdown by account title is Land 24 Millions of yen, Buildings 24 Millions of yen.
Our group groups hotels on an individual property basis.
The recoverable amount is measured based on the net selling price. The net selling price is based on the appraisal value, etc. by a real estate appraiser.

Current Consolidated Fiscal Year (From April 1, 2023 to March 31, 2024)
Our group recorded Impairment loss (508 Millions of yen) for the following Assets or Assets group in Current Consolidated Fiscal Year due to a decline in
the profitability of rental properties, power generation Facilities and Hotel, etc.
Application
Rental real estatePower generation
Facilities

Type

Location

Amount (Millions of yen)Land

Matsuyama City, Ehime Prefecture

39

Machinery and equipment

Chibu-gun, Hokkaido

13

Land

Kyoto city, kyoto prefecture

408

Land

Kyoto city, kyoto prefecture

46

Hotel

Total

508

The breakdown by account title is Land 494 Millions of yen and Machinery and equipment 13 Millions of yen.
We group rental properties, power generation Facilities and Hotel on a property-by-property basis.
The recoverable amount is measured based on the net selling price. The net selling price is based on the appraisal value, etc. by a real estate appraiser. of
rental properties and Hotel In addition, the recoverable amount of power generation Facilities is measured at value in use, and the recoverable amount isevaluated as zero because future cash flows are expected to be negative.

- 114 -

(Consolidated Statements of Comprehensive Income)※ Reclassification adjustments and Income tax effect related to Other comprehensive income
End of Previous Consolidated Accounting Period(From April 1, 2022
To 31 March, 2023)

Current Consolidated Fiscal Year
From April 1, 2023
To 31 March, 2024)

Net unrealized gains on available-for-sale securities:
Arising during the year

△287 Millions of yen

222 Millions of yen

△620

0

△908

222

289

△23

△619

198

3

△40

Arising during the year

8△33

Reclassification adjustments

140Before-tax

22

△33

Income tax effect07

Remeasurements of defined benefit plans

23

△25

△593

133

Reclassification adjustments
Before-tax
Income tax effectNet unrealized gains on available-for-sale securities
Foreign currency translation adjustments:
Arising during the year
Remeasurements of defined benefit plans:

Total other comprehensive income- 115 -

(Consolidated Statements of Changes in Shareholders' equity, etc.)
End of Previous Consolidated Accounting Period (From April 1, 2022 to 31 March, 2023)
1.Matters concerning Type and total number of Issued shares and the number of Class of shares and Equity securities
Current Consolidated Fiscal
Current Consolidated Fiscal
Year
Year
(Shares) of shares at
Increased shares (Shares)
beginning of period

Current Consolidated Fiscal
Year
Decreased shares (Shares)

Current Consolidated Fiscal
Year(Shares) of shares at end ofyear

Issued shares
Common stock

121,000,000--

121,000,000

Total

121,000,000--

121,000,000

Common stock (Note)

11,948,807-

756,200

11,192,607

Total

11,948,807-

756,200

11,192,607

Treasury stock(NOTE)Common stock's Equity securities reduction of 756.2 thousand Shares in Treasury stock is due to the exercise of stock options.

2.Matters concerning Subscription rights to shares and treasury Subscription rights to sharesClass of shares that is
the object ofBreakdown of Subscription rights Subscription rights tosharesto shares

Category

Number of shares subject to Subscription rights to shares: (Shares)
Current
consolidated
accounting
Beginning of the
fiscal year

Current
consolidated
accounting
Annual increase

Current
consolidated
accounting
Yearly decrease

Current
consolidated
accounting
Year-end

Current
consolidated
accounting
Year-end Balance(Millions of yen)

Submitting
Subscription rights to shares as
Company
stock-option(Parent Company)

-

-

-

-

-

220

Total

-

-

-

-

-

220

3.Matters concerning dividends(1)Dividends paid
(Resolution)

Class of shares

Total dividends(Millions of yen)

Per share dividends(yen)Record Date

Effective date24 June, 2022
Annual Shareholders'Common stock

1,526

14

31 March, 2022

27 June, 2022

Common stock437

430 September, 2022

6 December, 2022

Meeting
31 October, 2022
Board of Directors(2)Dividends for which Record Date belongs to Current Consolidated Fiscal Year and Effective date of dividends becomes the following consolidated Fiscal
year(Resolution)

Class of shares

Total dividends(Millions of yen)

Source of dividends

1 Shares Per share
Dividends (Yen)Record Date

Effective dateJune 23, 2023
Annual Shareholders'Meeting

Common stock

1,976

Retained earnings

18

March 31,2023

June 26,2023- 116 -

Current Consolidated Fiscal Year (From April 1, 2023 to March 31, 2024)
1.Matters concerning Type and total number of Issued shares and the number of Class of shares and Equity securities
Current Consolidated Fiscal
Current Consolidated Fiscal
Year
Year
(Shares) of shares at
Increased shares (Shares)
beginning of period

Current Consolidated Fiscal
Year
Decreased shares (Shares)

Current Consolidated Fiscal
Year(Shares) of shares at end ofyear

Issued shares
Common stock

121,000,000--

121,000,000

Total

121,000,000--

121,000,000

Common stock (Note)

11,192,607-

289,900

10,902,707

Total

11,192,607-

289,900

10,902,707

Treasury stock(NOTE)Common stock's Equity securities reduction of 289.9 thousand Shares in Treasury stock is due to the exercise of stock options.

2.Matters concerning Subscription rights to shares and treasury Subscription rights to sharesClass of shares that is
the object ofBreakdown of Subscription rights Subscription rights tosharesto shares

Category

Number of shares subject to Subscription rights to shares: (Shares)
Current
consolidated
accounting
Beginning of the
fiscal year

Current
consolidated
accounting
Annual increase

Current
consolidated
accounting
Yearly decrease

Current
consolidated
accounting
Year-end

Current
consolidated
accounting
Year-end Balance(Millions of yen)

Submitting
Subscription rights to shares as
Company
stock-option(Parent Company)

-

-

-

-

-

277

Total

-

-

-

-

-

277

3.Matters concerning dividends(1)Dividends paid
(Resolution)

Class of shares

Total dividends(Millions of yen)

1 Shares Per share
Dividends (Yen)Record Date

Effective dateJune 23, 2023
Annual Shareholders'Common stock

1,976

18

March 31,2023

June 26,2023

Common stock659

6

September 30, 2023

December 4, 2023

Meeting
October 30, 2023
Board of Directors(2)Dividends for which Record Date belongs to Current Consolidated Fiscal Year and Effective date of dividends becomes the following consolidated Fiscal
year(Resolution)

Class of shares

Total dividends(Millions of yen)

Source of dividends

1 Shares Per share
Dividends (Yen)Record Date

Effective dateJune 26, 2024
Annual Shareholders'Meeting

Common stock

1,981

Retained earnings

182024 March 31

June 27, 2024

- 117 -

(Consolidated Statements of Cash Flows)※1 Relation between Cash and cash equivalents's Term end Balance and the amount of items listed in Consolidated Balance Sheets
End of Previous Consolidated Accounting
Period(From April 1, 2022
To 31 March, 2023)
Cash and deposits accountCurrent Consolidated Fiscal Year
(From April 1, 2023
To March 31 2024)

47,872 Millions of yen

Time deposits falling due in more than three months

42,740 Millions of yen-△35

Deposits received from customers

△724

△821

Cash and cash equivalents

47,14841,8842 Details of significant non-cash transactions
End of Previous Consolidated Accounting
Period(From April 1, 2022
To 31 March, 2023)
Amount transferred from Real estate for sale and Real estate for sale inprogress to Fixed assets due to change in holding purpose of real estate

Current Consolidated Fiscal Year
(From April 1, 2023
To March 31 2024)

1,024 Millions of yen

93 Millions of yen

Amount transferred from Fixed assets to Real estate for sale and Real estate
for sale in progress due to change in holding purpose of real estate

15,684

21,193

Amount transferred from Fixed assets to Power generation facilities for saledue to change in holding purpose of real estate

3,408

2,617

※3 Major components of Assets and Liabilities of companies that became Consolidated subsidiaries as a result of acquiring Equity securities, etc.
End of Previous Consolidated Accounting Period (From April 1, 2022 to 31 March, 2023)
The components of Assets and Liabilities at the inception of consolidation for companies that newly became Consolidated subsidiaries as a result of theacquisition of Equity securities and the relation between net proceeds from investment and net disbursements were as follows:
Takara Leben Infrastructure Fund Inc.
Current assets

6,080 Millions of yen

Fixed assets

68,097

Goodwill

2,747

Deferred assets

26

Current liabilities△3,587

Fixed liabilities△35,676

Non-controlling interest△3,064Gain on step acquisitions△601

Acquisition cost of the subsidiaries' stocks

34,021

Acquisition cost until acquisition of control△1,898Cash and cash equivalents△5,180Less: Purchases of subsidiary stock due to changes in the scope△26,941of consolidation

Current Consolidated Fiscal Year (From April 1, 2023 to March 31, 2024)
This information is omitted because it is not material.

- 118 -

(Lease Transactions)1.Financing Lease transactions (lessee)(1) Financing for transfer of ownership and Lease transactions① Leased assets's Details(a) Property, plant and equipment
General business facilities ("buildings and structures," "tools, furniture and fixtures").
(1) Intangible assets
This is software.
② Depreciation of Leased assets
Significant matters forming the basis for preparing the consolidated financial statements as described in "(2) Depreciation methods for significant
depreciation Assets" in "4. Accounting Policy."(2) Financing and Lease transactions without transfer of ownership① Leased assets's Details(a) Property, plant and equipment
Tools, furniture, fixtures and vehicles at the general business facilities.
(1) Intangible assets
This is software.
② Depreciation of Leased assets
Significant matters forming the basis for preparing the consolidated financial statements as described in "(2) Depreciation methods for significant
depreciation Assets" in "4. Accounting Policy."

2.Operating Lease Transactions
Future minimum lease payments under non-cancelable operating leases(Millions of yen)
End of Previous Consolidated Accounting Period(March 31,2023)

Current Consolidated Fiscal Year
(March 31,2024)

Within 1 year

1,418

50

Over one year

10,52070

Total

11,939120- 119 -

(Financial Instruments)
1.Matters relating to financial instruments(1)Policy of efforts for financial instruments
Our group procures the necessary funds from banks and other financial institutions in light of the sales plan. Derivatives are used to avoid the risks described
below, and are Policy that do not engage in speculative transactions.
(2)Details of Financial Instruments and Risks Related to Financial Instruments
Notes and accounts receivable, which are trade receivables, are exposed to customer credit risk.
Investment securities consist primarily of shares of companies with operational relationships and are exposed to the risk of market price fluctuations.
Notes and accounts payable-trade, a trade payable, is mostly due within 1 year.
Borrowings and Bonds payable primarily represent financing for operating transactions, and repayments and maturities are principally Within 3 years.
Borrowings are exposed to the risk of fluctuations in interest rates, of which a portion is hedged using derivative transactions (interest rate swaps).
Derivative transactions are interest rate swaps used to hedge the risk of fluctuations in interest rates payable on borrowings. The evaluation method for theeffectiveness of hedges satisfies the requirements for special treatment of interest rate swaps, and therefore the evaluation of effectiveness is omitted based on theevaluation.
(3)Risk management for financial instruments① Monitoring of credit risk (the risk that customers or counterparties may default)
For trade receivables, our Business Divisions and Administration Divisions regularly monitor the status of major customers and manage the due date andBalance for each counterparty. We also seek to quickly identify and mitigate concerns about collection due to deterioration in financial conditions and otherfactors.
② Management of market risk (interest rate risk, etc.)
We regularly monitor the market value of Investment securities and the financial condition of issuers (client companies) and continuously review theirholdings in consideration of market conditions and relations with client companies.
Borrowings and Bonds payable are monitored by preparing a list of interest rates for each financial institution. In addition, the Company manages its trade
payables and borrowings by such means as preparing a cash plan statement in the Finance Department of the Company.
Derivative transactions are managed in accordance with the Derivative Management Regulations, which stipulate transaction authority and limits.
Consolidated subsidiaries is also managed in accordance with our derivative-management rules.
③ Management of funding liquidity risk (the risk that payment will not be made when due)
Our Finance Department prepares and updates cash flow plans in a timely manner based on Report from each department, and manages liquidity risk by
maintaining liquidity on hand and other means.
(4)Supplementary Explanations Concerning Fair Value of Financial Instruments
Since variable factors are incorporated in the calculation of the fair value of financial instruments, the fair value may change if different assumptions are
adopted. In addition, the contract amounts, etc. related to derivative transactions under Notes under "Derivative Transactions" do not themselves represent themarket risks associated with derivative transactions.
2.Fair Value of Financial Instruments
Carrying amounts, fair values and differences between these amounts are as follows: Disclosure of "Cash and deposits," "Notes and accounts receivable," "Shortterm loans receivable" ("Other" of Current assets)," "Notes and accounts payable-trade," and "Short-term borrowings" is omitted because they are cash and their fairvalues approximate their carrying amounts due to their short-term maturities.

End of Previous Consolidated Accounting Period (March 31,2023)
Carrying amount(Millions of yen)

Market value (Millions of yen)

Difference (Millions of yen)

(1) Investment securities (*1)

1,858

1,858

-

(2) Long-term loans receivable

830

830

-

2,688

2,688

-

34

34

-

(4) Long-term loans payable (including Current portion of longterm loans payable)

130,826

130,860

34(5) Bonds payable (including Current portion of bonds payable)

4,205

4,174

△30

249

237

△11

135,315

135,308△7

Property Total(3) Lease obligations, current(6) Lease obligations (fixed)
Debt Total- 120 -

Current Consolidated Fiscal Year (2024 March 31)
Carrying amount(Millions of yen)

Market value (Millions of yen)

Difference (Millions of yen)

(1) Investment securities (*1)

2,138

2,138

-

(2) Long-term loans receivable

200

200

-

2,338

2,338

-

34

34

-

(4) Long-term loans payable (including Current portion of longterm loans payable)

174,776

174,719△57(5) Bonds payable (including Current portion of bonds payable)

9,815

9,886

71

214

202

△12

184,841

184,843

2

-

-

-

Property Total(3) Lease obligations, current(6) Lease obligations (fixed)
Debt Total
Derivative transactions (*2)(*1) Shares and other securities without quoted market prices are not included in "(1) Investment securities." The carrying amounts of these financial instruments
are as follows:(Millions of yen)
Category

End of Previous Consolidated Accounting Period(March 31,2023)

Unlisted stocks

Current Consolidated Fiscal Year
(March 31,2024)
458

510

(*2) The fair value of interest rate swaps with special treatment is included in the fair value of Long-term loans payable as they are accounted for as an integral partof the hedged item Long-term loans payable.

(NOTE)1. Redemption schedule for monetary receivables and securities with maturity dates subsequent to the consolidated balance sheet date
End of Previous Consolidated Accounting Period (March 31,2023)
Over one year
Within 5 years(Millions of yen)

Within 1 year
(Millions of yen)
Cash and deposits

Over five years
Within 2010 years(Millions of yen)

Due after ten years(Millions of yen)

47,872---

Notes and accounts receivable

98

-

-

-

Long-term loans receivable

-

830

-

-

47,970830--

Within 1 year
(Millions of yen)Over one year
Within 5 years(Millions of yen)Over five years
Within 2010 years(Millions of yen)

Due after ten years(Millions of yen)

Total

Current Consolidated Fiscal Year (2024 March 31)

Cash and deposits

42,740---Notes and accounts receivable

115

-

-

-

Short-term loans

250

-

-

-

-

200

-

-

43,106200--

Long-term loans receivable
Total- 121 -

2.Amounts due after the consolidated balance sheet date of Short-term borrowings, Long-term loans payable, Bonds payable and Lease obligations
End of Previous Consolidated Accounting Period (March 31,2023)
Within 1 year
(Millions of yen)Over one year
Within 2 years(Millions of yen)Over 2 years
Within 3 years(Millions of yen)

Due after 3 years
Within 4 years(Millions of yen)

Due after 4 years
Within 5 years(Millions of yen)Over five years(Millions of yen)

18,065

-

-

-

-

-

74,004

-

-

-

-

-

25,99746,60731,903

10,580

6,844

8,893

Bonds payable

190

2,740

940

70

265

-

Lease obligations

34

34

33

32

31

117

Total

118,292

49,38232,877

10,682

7,140

9,010

Short-term borrowings
Non-recourse Short-termborrowings
Long-term loans payable

Current Consolidated Fiscal Year (2024 March 31)
Within 1 year
(Millions of yen)Over one year
Within 2 years(Millions of yen)Over 2 years
Within 3 years(Millions of yen)

Due after 3 years
Within 4 years(Millions of yen)

Due after 4 years
Within 5 years(Millions of yen)Over five years(Millions of yen)

Short-term borrowings

25,621

-

-

-

-

-

Long-term loans payable

44,10245,154

18,40913,467

11,01842,624

Bonds payable

2,806

1,006

2,736

3,265

-

-

Lease obligations

34

33

32

31

31

86

Total

72,56546,194

21,178

16,764

11,04942,710- 122 -

3.Breakdown of Fair Value of Financial Instruments by Level
The fair values of financial instruments are classified into the following 3 levels depending on the observability and significance of the inputs for determining
fair value:
Fair value of Level 1: Fair value determined by quoted prices for Assets or Liabilities that are subject to valuation in active markets among the inputs related tothe calculation of observable fair values
Fair value of Level 2: Fair value calculated using inputs for determining fair value other than Level 1 inputs among the inputs for determining observable fairvalue
Level 3 fair value: Market value calculated using inputs related to the calculation of unobservable fair values
If multiple inputs are used that have a significant impact on the calculation of fair value, then the fair value is categorized as the lowest priority level indetermining fair value among the levels to which each of those inputs belongs.

(1)Financial instruments recorded in Consolidated Balance Sheets at fair value
End of Previous Consolidated Accounting Period (March 31,2023)
Market value (Millions of yen)
Category
Level 1

Level 2

Level 3

Total

Investment securities
Equity securities
Property Total

1,858

-

-

1,858

1,858

-

-

1,858

Current Consolidated Fiscal Year (2024 March 31)
Market value (Millions of yen)
Category
Level 1

Level 2

Level 3

Total

Investment securities
Equity securities
Property Total

2,138

-

-

2,138

2,138

-

-

2,138

(2)Financial instruments other than financial instruments recorded in Consolidated Balance Sheets at fair value
End of Previous Consolidated Accounting Period (March 31,2023)
Market value (Millions of yen)
Category
Level 1Long-term loans receivable
Property Total
Lease obligations, current
Long-term loans payable (including Current portion of
long-term loans payable)
Bonds payable (including Current portion of bonds
payable)Lease obligations (fixed)
Debt Total

Level 2

Level 3

Total

-

830

-

830

-

830

-

830

-

34

-

34

-

130,860-

130,860

-

4,174

-

4,174

-

237

-

237

-

135,308-

135,308- 123 -

Current Consolidated Fiscal Year (2024 March 31)
Market value (Millions of yen)
Category
Level 1Long-term loans receivable
Property Total
Lease obligations, current
Long-term loans payable (including Current portion of
long-term loans payable)
Bonds payable (including Current portion of bonds
payable)Lease obligations (fixed)
Debt Total

Level 2

Level 3

Total

-

200

-

200

-

200

-

200

-

34

-

34

-

174,719-

174,719

-

9,886

-

9,886

-

202

-

202

-

184,843-

184,843(NOTE) Explanation of valuation techniques used to calculate market prices and inputs related to the calculation of market prices
Investment securities
Listed stocks are valued using quoted prices. As listed shares are traded in active markets, their fair values are classified as Level 1 fair values.
Long-term loans receivable
The fair value of Long-term loans receivable is determined by the discounted present value method based on the interest rate obtained by adding thecredit spread to the appropriate index such as the future cash flow and the yield on government bonds for each credit risk Category for credit control
purposes, and is classified as the fair value of Level 2.
Bonds payable (including Current portion of bonds payable)
The discounted present value method is used to calculate the fair value of Level 2 based on Total amount of Bonds payable and principal and interest
issued by the Company and the interest rate based on the remaining term of Bonds payable and credit risk.
Long-term loans payable (including Current portion of long-term loans payable), leased obligations
The fair value of these instruments is determined by the discounted present value method based on Total amount of principal and interest and theinterest rate adjusted for the remaining term of the obligation and credit risk. The fair value of the instruments is classified as Level 2. Certain Long-termloans payable are subject to the exceptional treatment of interest rate swaps (see "Derivative Transactions" below) and are calculated using Total amountof the principal interest rate processed together with the interest rate swaps.
Derivative transactions
The fair value of interest rate swaps with special treatment is included in the fair value of Long-term loans payable as they are accounted for as anintegral part of the hedged Long-term loans payable (see "Long-term loans payable" above).

- 124 -

(Notes to Securities)
1.Other in Securities
End of Previous Consolidated Accounting Period (March 31,2023)
Type

Securities whose carrying

Consolidated Balance Sheets
Amount recorded (Millions ofyen)

Acquisition cost
(Millions of yen)

Difference(Millions of yen)

(1) Equity securities

95

74

21

(2) Bonds---(3) Other---

Subtotal

95

74

21

(1) Equity securities

8

15

△7

(2) Bonds---(3) Other

1,754

1,880

△125

1,762

1,895

△132

1,858

1,969

△111

amount exceeds their
Acquisition cost

Securities whose carrying
amount does not exceed
Acquisition cost

Subtotal
Total

Current Consolidated Fiscal Year (2024 March 31)
Type

Consolidated Balance Sheets
Amount recorded (Millions ofyen)(1) Equity securities
Securities whose carrying

Acquisition cost
(Millions of yen)

Difference(Millions of yen)

139

75

64

(2) Bonds---(3) Other

1,989

1,880

109

Subtotal

2,129

1,955

173

(1) Equity securities

9

13

△4

(2) Bonds---(3) Other

-

-

-

9

13

△4

2,138

1,969

169

amount exceeds their
Acquisition cost

Securities whose carrying
amount does not exceed
Acquisition cost

Subtotal
Total

2.Other securities soldEnd of Previous Consolidated Accounting Period (March 31,2023)
Type

Proceeds from sales(Millions of yen)

Total gain on sales(Millions of yen)

Total losses on sales(Millions of yen)

(1)Equity securities

40

27

-

(2)Bonds---(3)Other

212

19

-

253

46

-

Total
Current Consolidated Fiscal Year (2024 March 31)
Type(1)Equity securities

Proceeds from sales(Millions of yen)

Total gain on sales(Millions of yen)

Total losses on sales(Millions of yen)

146

145

0

(2)Bonds---(3)Other

-

-

-

146

145

0

Total

- 125 -

3.Marketable securities impaired
In End of Previous Consolidated Accounting Period, Not applicable.
During the fiscal year under review, Not applicable.
When the fair value of Term end declines by 50% or more from Acquisition cost level, all impairment losses are recognized. When the fair value of Term end
declines by 30% to 50%, impairment losses are recognized for the amount deemed necessary considering the possibility of recovery.
(Derivative Transactions)
1.Derivative financial instruments for which deferred hedged accounting has not been applied
End of Previous Consolidated Accounting Period (March 31,2023)
Not applicable.

Current Consolidated Fiscal Year (March 31,2024)
Not applicable.

2.Derivative financial instruments for which deferred hedged accounting has been applied
Interest rate-related
End of Previous Consolidated Accounting Period (March 31,2023)
Not applicable.

Current Consolidated Fiscal Year (March 31,2024)

Hedge accounting method

Swap rates applied toType of the transaction

Principal items hedged

Contract amount, etc.
(Millions of yen)Over one year ofcontract amount, etc.
(Millions of yen)

39,78539,785Market value(Millions of yen)Interest rate swaps

underlying debt
Receive floating, pay fixedLong-term loans
payable(NOTE)(NOTE)The fair value of interest rate swaps with special treatment is included in the fair value of Long-term loans payable as they are accounted for as an integral part of thehedged item Long-term loans payable.

- 126 -

(Retirement Benefits)
1.General outline of the retirement allowance system adopted
Our Group has a retirement lump-sum benefit plan as a defined benefit plan and a small business retirement benefit mutual aid plan as a defined contribution
plan. The lump-sum severance payment plans adopted by the Company and certain Consolidated subsidiaries are calculated using the simplified method for
Liabilities related to retirement benefits and Retirement benefit expenses.

2.Defined benefit plan
(1) Reconciliation of Beginning Balance of projected benefit obligation and Term end Balance (excluding plans to which the simplified method listed in (2) isapplied)End of Previous Consolidated Accounting
Period(From April 1, 2022
To 31 March, 2023)
Beginning Balance of projected benefit obligation

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)

916 Millions of yen

1,003 Millions of yen

Service cost

150

158

Interest cost

5

9

Actuarial gain or loss arising

△27

37

Benefits paid

△41

△70

-

46

-

30

1,003

1,215

Transfer due to change from simplified method to principle
methodAmortization due to change from simplified method to principle
methodTerm end Balance in projected benefit obligation(2) Reconciliation of Liabilities related to retirement benefits Beginning Balance and Term end Balance for plans applying the simplified method
End of Previous Consolidated Accounting
Period(From April 1, 2022
To 31 March, 2023)
Liabilities related to retirement benefits Beginning Balance

67 Millions of yen

Retirement benefit expenses

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)
97 Millions of yen

59

61

Benefits paid

△25

△7

Contributions to the SME Retirement Benefit Mutual Aid Plan

△4

△5

-

△46

97

99

Transfer due to change from simplified method to principle
methodLiabilities related to retirement benefits's Term end Balance(3) Reconciliation of Assets for Term end Balance and Consolidated Balance Sheets for Retirement Benefit Obligations and Liabilities related to retirement benefits
for Retirement Benefits
End of Previous Consolidated Accounting
Period(March 31,2023)
Retirement benefit obligation for unfunded plans

Current Consolidated Fiscal Year
(March 31,2024)

1,138 Millions of yen

1,353 Millions of yen

△38

△39

1,100

1,314

Estimated amount to be paid under the SME Retirement Benefit
Mutual Aid Plan
Net amount of liabilities and assets recorded in the consolidatedbalance sheets- 127 -

(4) Amount of Retirement benefit expenses and its breakdown
End of Previous Consolidated Accounting
Period(From April 1, 2022
To 31 March, 2023)

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)

Service cost

150 Millions of yen

158 Millions of yen

Interest cost

5

9

Amortization of actuarial loss

60

Retirement benefit expenses calculated by the simplified method

55

56

-

30

216

254

Amortization due to change from simplified method to principle
methodRetirement benefit expenses for defined benefit plans(5) Remeasurements of defined benefit plans
The components of items recorded in Remeasurements of defined benefit plans (before tax effect) are as follows:
End of Previous Consolidated Accounting
Period(From April 1, 2022
To 31 March, 2023)
Differences in the mathematical calculations
Combined Total

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)△33 Millions of yen

36 Millions of yen

△33

36

(6) Remeasurements of defined benefit plans
The components of items recorded in Remeasurements of defined benefit plans (before tax effect) are as follows:
End of Previous Consolidated Accounting
Period(March 31,2023)

Current Consolidated Fiscal Year
(March 31,2024)

Unrecognized actuarial loss

△11 Millions of yen

25 Millions of yen

Combined Total

△11

25

(7) Assumptions used in actuarial calculations
Major actuarial assumptions (weighted average)
End of Previous Consolidated Accounting
Period(March 31,2023)
Discount rate

0.86～0.99 %Expected rate of salary increase

2.07～2.95

Current Consolidated Fiscal Year
(March 31,2024)
1.05～1.15 %2.34～2.95

3.Defined contribution plan
The required contributions to our SME Retirement Benefit Mutual Aid Plan are End of Previous Consolidated Accounting Period 4 Millions of yen and Current
Consolidated Fiscal Year 5 Millions of yen.

- 128 -

(Stock options, etc.)
1.Amount and line item of expense related to stock options(Millions of yen)
End of Previous Consolidated Accounting Period(From April 1, 2022
To 31 March, 2023)
Selling, general and administrative

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)

327

expenses

196

2.Details and size of stock options and their changes(1) Details of stock options
1st Class B Subscription rights to shares

Second Class B Subscription rights to shares

Category and number of persons granted

Directors 7 Name
1 of our Executive Officers

Directors 7 Name
1 of our Executive Officers

Stock by Class of shares
Optional numbers (NOTE)1,2

Common stock 130 thousand Shares

Common stock 120.4 thousand Shares

The grant dateJuly 9,2012

May 14,2013

Vesting conditions

As a general rule, both our Director and Executive Officers
positions have been lost since the day following that date.

As a general rule, both our Director and Executive Officers
positions have been lost since the day following that date.

The requisite service period

The Company does not consider the applicable service period
as it is difficult to reasonably predict the vesting date.

The Company does not consider the applicable service period
as it is difficult to reasonably predict the vesting date.

The exercise period

From July 10, 2012 to July 9, 2052

From May 15, 2013 to May 14, 2053

Third Series Class B Subscription rights to shares

4th Series Class B Subscription rights to shares

Category and number of persons granted

Directors 7 Name
2 of our Executive Officers

Directors 7 Name
Our 3 Executive Officers

Stock by Class of shares(NOTE)1 number of options

Common stock 129.2 thousand Shares

Common stock 133.6 thousand Shares

The grant date

May 13, 2014

July 14, 2015

Vesting conditions

As a general rule, both our Director and Executive Officers
positions have been lost since the day following that date.

As a general rule, both our Director and Executive Officers
positions have been lost since the day following that date.

The requisite service period

The Company does not consider the applicable service period
as it is difficult to reasonably predict the vesting date.

The Company does not consider the applicable service period
as it is difficult to reasonably predict the vesting date.

The exercise period

From May 2014, 2014 to May 13, 2054

From July 2015, 2015 to July 14, 2055

- 129 -

5th Series Class B Subscription rights to shares

Sixth Series Class B Subscription rights to shares

Category and number of persons granted

Directors 7 Name
2 of our Executive Officers

Our 6 directors
5 of our Executive Officers

Stock by Class of shares(NOTE)1 number of options

Common stock 125.2 thousand Shares

Common stock 128 thousand Shares

The grant date

May 10, 2016

July 11, 2017

Vesting conditions

As a general rule, both our Director and Executive Officers
positions have been lost since the day following that date.

As a general rule, both our Director and Executive Officers
positions have been lost since the day following that date.

The requisite service period

The Company does not consider the applicable service period
as it is difficult to reasonably predict the vesting date.

The Company does not consider the applicable service period
as it is difficult to reasonably predict the vesting date.

The exercise period

From May 11, 2016 to May 10, 2056

From July 12, 2017 to July 11, 2057

Seventh Series Class B Subscription rights to shares

Series 8 Class B Subscription rights to shares

Category and number of persons granted

Directors 7 Name
Executive Officer 7 Name

Directors 7 NameOur 6 Executive Officers

Stock by Class of shares(NOTE)1 number of options

Common stock 164 thousand Shares

Common stock 156 thousand Shares

The grant dateAugust 28, 2018

July 30, 2019

Vesting conditions

As a general rule, both our Director and Executive Officers
positions have been lost since the day following that date.

As a general rule, both our Director and Executive Officers
positions have been lost since the day following that date.

The requisite service period

The Company does not consider the applicable service period
as it is difficult to reasonably predict the vesting date.

The Company does not consider the applicable service period
as it is difficult to reasonably predict the vesting date.

The exercise period

From August 29, 2018 to August 28, 2058

From July 31, 2019 to July 30, 2059

Series 9 Class B Subscription rights to shares

10th Series Class B Subscription rights to shares

Category and number of persons granted

Directors 7 Name
5 of our Executive Officers

Directors 7 Name
4 of our Executive Officers

Stock by Class of shares(NOTE)1 number of options

Common stock 159.6 thousand Shares

Common stock 158.1 thousand Shares

The grant dateAugust 1, 2020

July 31, 2021

Vesting conditions

As a general rule, both our Director and Executive Officers
positions have been lost since the day following that date.

As a general rule, both our Director and Executive Officers
positions have been lost since the day following that date.

The requisite service period

The Company does not consider the applicable service period
as it is difficult to reasonably predict the vesting date.

The Company does not consider the applicable service period
as it is difficult to reasonably predict the vesting date.

The exercise period

From August 2, 2020 to August 1, 2060

From August 1, 2021 to July 31, 2061

- 130 -

11th Series Class B Subscription rights to shares

11th Series Class A Subscription rights to shares

Category and number of persons granted

Directors 7 Name
Executive Officer 7 Name

2 of our Director
6 Director of affiliates
9 Executive Officers of affiliates

Stock by Class of shares(NOTE)1 number of options

Common stock 188 thousand Shares

Common stock 289.9 thousand Shares

The grant dateAugust 23, 2022

August 1, 2023

Vesting conditions

As a general rule, both our Director and Executive Officers
positions have been lost since the day following that date.

There are no vesting conditions.

The requisite service period

The Company does not consider the applicable service period
as it is difficult to reasonably predict the vesting date.

The applicable service period is not specified.

The exercise period

From August 24, 2022 to August 23, 2062

From August 2, 2023 to August 1, 2063

12th Series Class B Subscription rights to shares

Category and number of persons granted

2 of our Director
6 Director of affiliates
9 Executive Officers of affiliates

Stock by Class of shares(NOTE)1 number of options

Common stock 176.7 thousand Shares

The grant dateAugust 1, 2023

Vesting conditions

As a general rule, both our Director and Executive Officers
positions have been lost since the day following that date.

The requisite service period

The Company does not consider the applicable service period
as it is difficult to reasonably predict the vesting date.

The exercise period

From August 2, 2023 to August 1, 2063

(NOTE)1. Figures are converted into Equity securities numbers.
As Equity securities split was conducted at the rate of 4 Shares per Shares on July 1, 2.2013, the adjusted formula by the relevant Equity securities split ispresented.

- 131 -

(2) Size of stock options and their changes
Stock options that existed in Current Consolidated Fiscal Year (Year ending March 31, 2024) are covered, and the number of stock options is converted toEquity securities number.
① Number of stock options
Second Series
Third Series Class
Series 1 Class B
Series 4 Class B 5th Series Class B Series 6 Class B
Series 7 Class B
Series 8 Class B
Class B
B
Subscription rights
Subscription rights Subscription rights Subscription rights Subscription rights Subscription rights
Subscription rights Subscription rights
to shares
to shares
to shares
to shares
to shares
to shares
to shares
to shares
Non-vested (Shares)
End of End of Previous
30,40028,00027,60032,00032,00076,00084,00084,000

Grant

-

-

-

-

-

-

-

-

Lapse

-

-

-

-

-

-

-

-

Vesting

-

-

-

-

-

-

-

-

30,40028,00027,60032,00032,00076,00084,00084,000

-

-

-

-

-

-

-

-

Vesting

-

-

-

-

-

-

-

-

Exercise of rights

-

-

-

-

-

-

-

-

Lapse

-

-

-

-

-

-

-

-

Outstanding balance

-

-

-

-

-

-

-

-

Consolidated Accounting Period

Unvested balance(Shares) after vesting
End of End of Previous
Consolidated Accounting Period

Series 9 Class B Series 10 Class B 11th Series Class B Series 11 Class A 12th Series Class B
Subscription rights Subscription rights Subscription rights Subscription rights Subscription rights
to shares
to shares
to shares
to shares
to shares
Non-vested (Shares)
End of End of Previous
119,600

135,200

163,700

-

-

Grant

-

-

-

289,900

176,700

Lapse

-

-

-

-

-

Vesting---289,900-

119,600

135,200

163,700-

176,700

-

-

-

-

-

Vesting---289,900-

Exercise of rights

-

-

-

289,900

-

Lapse

-

-

-

-

-

Outstanding balance

-

-

-

-

-

Consolidated Accounting Period

Unvested balance(Shares) after vesting
End of End of Previous
Consolidated Accounting Period(NOTE)Equity securities split was conducted at the rate of 4 Shares per Shares on July 1, 2013. Accordingly, the figures for Equity securities after Equity securities split
are shown.

- 132 -

② Unit price information
Second Series
Third Series Class
Series 1 Class B
Series 4 Class B 5th Series Class B Series 6 Class B
Series 7 Class B
Series 8 Class B
Class B
B
Subscription rights
Subscription rights Subscription rights Subscription rights Subscription rights Subscription rights
Subscription rights Subscription rights
to shares
to shares
to shares
to shares
to shares
to shares
to shares
to shares
Exercise Price (Yen)

1

1

1

1

1

1

1

1

-

-

-

-

-

-

-

-

128

306

186

472

480

316

253

290

Average Stock Price at Exercise(Yen)
Fair in The grant date
Valuation unit price (Yen)

Series 9 Class B Series 10 Class B 11th Series Class B Series 11 Class A 12th Series Class B
Subscription rights Subscription rights Subscription rights Subscription rights Subscription rights
to shares
to shares
to shares
to shares
to shares
Exercise Price (Yen)

1

1

1

1

1

-

-

-

464

-

228

241

262

482

321

Average Stock Price at Exercise(Yen)
Fair value at grant-date (Yen)(NOTE)Exercise of rights value is 1 Shares Per share value. The figures are converted into prices after the stock split on July 1, 2013 (ratio of 4 Shares per Shares).

3.Method of estimating the fair value of stock options
The fair value estimation methods for the 11th Series A Subscription rights to shares that was Grant in Current Consolidated Fiscal Year are as follows:① Black-Scholes valuation technique used
② Main basic figures and estimation method
11th Series Class A Subscription rights to shares
Stock Price Volatility (NOTE)1

20.9%

Expected remaining maturity(NOTE)2

0.0028 years

Expected dividend rate (NOTE)3

3.60%

Risk-free rate (NOTE)4△0.059%(NOTE)Calculated based on the stock price Actual from August 2, 1.2021 to July 31, 2023.
2.The period from Subscription rights to shares allocation date to The exercise period commencement date is used.
3.Calculated based on the dividends Actual for the most recent 2010 years.
4.Since the expected life is very short, the averages of the overnight Collateral free rates are used.

The fair value estimation methodology for the 12th Series Class B Subscription rights to shares that was Grant in Current Consolidated Fiscal Year is as follows:① Black-Scholes valuation technique used
② Main basic figures and estimation method
12th Series Class B Subscription rights to shares
Stock Price Volatility (NOTE)1

38.7%

Expected remaining maturity(NOTE)2

11.3 years

Expected dividend rate (NOTE)3

3.60%

Risk-free rate (NOTE)4

0.651%(NOTE)1. Calculated based on the share price Actual from April, 2012 2023 to July 31, 2023.
2.The weighted-average of the expected remaining service lives of Subscription rights to shares employees is used.
3.Calculated based on the dividends Actual for the most recent 2010 years.
4.Calculated based on JGB yields with a term corresponding to the expected remaining term.

4.How to estimate Vesting of stock options
Basically, because it is difficult to reasonably estimate the number of future forfeitures, the Company has adopted a method to reflect only the actual number of
forfeitures.

- 133 -

(Deferred tax accounting)
1.Breakdown of Deferred tax assets and Deferred tax liabilities by major source
End of Previous Consolidated
Accounting Period(March 31,2023)

Current Consolidated Fiscal Year
(March 31,2024)

Deferred tax assets
Bonus Allowance in excess of tax limit

221 Millions of yen

272 Millions of yen

Allowance for doubtful accounts in excess of tax limit

85

84

Real estate for sale valuation loss denied

53

58

Denial of loss from membership revaluation

34

33

Liabilities related to retirement benefits in excess of tax limit

355

404

44

30

Excess depreciation expense disallowed for tax purpose

184

182

Impairment loss deny

400

292

Deferred consumption taxes

147

254

Income Taxes and Other Taxes Payable

167

220

Retirement benefits for directors and corporate auditors Allowance inexcess of tax limit

Mandatory write-down of investment securities

3

3

Denial of asset retirement obligations

62

67

Tax Deferred assets

251

246

36

48

80

84

Compensation for completed construction Allowance in excess ofdeductible expenses
Subscription rights to shares
Loss on compensation for construction contracts denied

66

66

Shares of the Successor Corporation in Split

290

290

Tax effect on elimination of unrealized gains on consolidation

742

360

-

210

273

29

Gain (loss) on transfer Adjustment account
Other
Subtotal deferred tax assets

3,503

3,240

Valuation allowance (Note)

△612

△836

Deferred income taxes Total assets

2,890

2,403

Valuation difference on assets received for merger

△551

△551

Net unrealized gains on available-for-sale securities

△2

△43

-

△38

Deferred tax liabilities

Gain (loss) on transfer Adjustment account

△102

-

Deferred income taxes Total liabilities

Other

△656

△634

Net deferred tax assets (△: liability)

2,234

1,769

(NOTE)The main Valuation allowance changes in Details were higher Adjustment account and Impairment loss related to gains and losses on dispositions.

- 134 -

2.Breakdown of significant differences between Statutory tax rate and Effective income tax rate by major item responsible for the difference
End of Previous Consolidated Accounting
Period(March 31,2023)
Statutory tax rate

30.6%

Current Consolidated Fiscal Year
(March 31,2024)
30.6%(Adjustment)
Increase in valuation allowance

△16.9

1.8

Expenses not deductible for income tax purposes

1.1

0.4

Items that are not permanently included in gross profit, such as

0.0

△0.0

Dividend income

0.2

0.2

Per capita inhabitant tax

9.2

△0.5

Difference in tax rates of subsidiaries

2.1

1.2

Goodwill depreciation

△5.6

2.2

Effect of consolidation adjustments

1.4

0.4

Other

22.0

36.3

Effective income tax rate

(Business Combinations, etc.)(Determination of Provisional Accounting Treatment for Business Combinations)Green Energy LLC, our Consolidated subsidiaries with November 18, 2022, conducted a business combination with Takara Leben Infrastructure Fund Inc.
on a provisional basis in End of Previous Consolidated Accounting Period, but has been finalized as Current Consolidated Fiscal Year. There is no change in
the amount associated with the finalization of this provisional accounting treatment.
(Asset retirement obligations)
Our group recognizes the obligation to restore Land for office leases to its original state upon vacating under the property lease contract as an Asset retirement
obligations, but the description is omitted because the total amount of the obligation is immaterial.
With respect to the obligation to restore an Head Office to its original state upon vacating under a real estate lease contract, instead of recording it as an
Liabilities, the Company reasonably estimates the amount that it ultimately cannot expect to recover Be related lease deposit in the real estate lease contract andrecords the amount belonging to the burden of consolidated Fiscal year in expenses.
(Rental and other real estate-related)
We and certain Consolidated subsidiaries have office buildings (including Land) for lease and condominiums for lease in For Other area of Tokyo. Rental income(loss) related to such rental properties in End of Previous Consolidated Accounting Period is 259 Millions of yen (rental income is recorded in Net sales and major
rental expenses are recorded in Cost of sales). Rental income (loss) related to such rental properties in Current Consolidated Fiscal Year is 151 Millions of yen (rental
income is recorded in Net sales and major rental expenses are recorded in Cost of sales).
In addition, the amounts reported on the consolidated balance sheets, the changes during the period, and the fair value of the rental properties are as follows.
(Millions of yen)
End of Previous Consolidated Accounting Period(From April 1, 2022
To 31 March, 2023)

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)

Carrying amount
Beginning Balance

38,80535,714

Changes during the year

△3,091△4,668Term end Balance

35,71431,04537,25436,080Term end Market Value(NOTE)1. Carrying amount is Acquisition cost less accumulated Accumulated depreciation and Impairment loss.
2.Of Changes during the year, the main increases in End of Previous Consolidated Accounting Period were real estate acquisitions (12,097 Millions of yen)
and Application changes to rental properties (38 Millions of yen), while the main decreases were transfers to Real estate for sale and Real estate forsale in progress (14,364 Millions of yen) and Depreciation and amortization (316 Millions of yen). The primary increase in Current Consolidated
Fiscal Year was real estate acquisitions (11,659 Millions of yen) and the primary decrease was transfers to Real estate for sale and Real estate for salein progress (17,010 Millions of yen) and Depreciation and amortization (303 Millions of yen).
3.The fair value of Term end is based on the appraisal value by an outside real estate appraiser.
4.Assets under construction is not included in the above table because it is extremely difficult to determine its fair value. Assets's End of Previous
Consolidated Accounting Period and Current Consolidated Fiscal Year's Carrying amount under construction are 3020 Millions of yen and 2165
Millions of yen, respectively.

- 135 -

(Revenue Recognition)
1.Revenue arising from contracts with customers decomposition data
Information disaggregating revenue from contracts with customers is presented in "Notes (Segment Information, etc.)."2.Understanding Revenue arising from contracts with customers is based on
The information that forms the basis for understanding Revenue arising from contracts with customers is as described in "(5) Basis of recognition ofsignificant revenues and expenses" in "4. Basis of preparation of consolidated financial statements, Accounting Policy."

3.Information regarding the relationship between the satisfaction of performance obligations under contracts with customers and cash flows arising from suchcontracts and the amount and timing of revenue expected to be recognized from contracts with customers that exist in End of the consolidated financial
year subsequent to the next consolidated Fiscal year
(1)Balance of Contract assets and Contractual liabilities, etc.
End of Previous Consolidated
Accounting Period

Current Consolidated Fiscal Year

Receivables from contracts with customers (beginning Balance)

2,765 Millions of yen

3,379 Millions of yen

Receivables from contracts with customers (Term end Balance)

3,379

8,220

Contractual liability (beginning Balance)

7,323

10,172Contractual liability (Term end Balance)

10,172

8,994

Contractual liabilities primarily relates to Advances received received from customers who are ordinary consumers who deliver the property
pursuant to real estate purchase and sale contracts in Real Estate Business. Contractual liabilities are reversed upon recognition of revenue.
The amount of revenue recognized in End of Previous Consolidated Accounting Period that was included in Contractual liabilities Balance at the
beginning of the period was 4,348 Millions of yen.
The amount of revenue recognized in Current Consolidated Fiscal Year that was included in Contractual liabilities Balance at the beginning of theperiod was 7420 Millions of yen.

(2)Transaction price allocated to the remaining performance obligation
We and Consolidated subsidiaries have applied the practical expedient method to Notes the transaction prices allocated to the remaining performanceobligations and do not include the initial expected contract term in the scope of Notes for Within 1 year contracts. The performance obligations relate to
the delivery of the property pursuant to a real estate purchase and sale agreement in Real Estate Business, and the total transaction prices allocated to theremaining performance obligations and the expected term of revenue to be recognized are as follows:
End of Previous Consolidated
Accounting Period

Current Consolidated Fiscal Year

Within 1 year

23,842 Millions of yen

26,656 Millions of yen

Due in 1-2 years

41,942

31,714Due after 2 years through 3 years

12,222

11,717

Total

78,00770,089- 136 -

(Segment information, etc.)[Segment Information]
1.Reportable segments at a Glance
Reportable segments of the Group are components of the Group for which discrete financial data is available and regularly reviewed by Board of Directors tomake decisions about resource allocation and assess performance.
Our group conducts business activities mainly on condominium sales. "Real Estate Business," "Energy Business," and "Asset Management Business" arereferred to as Reportable segments.
Real Estate Business is engaged in the core business of selling new condominiums, as well as new detached houses, renovation and resale of condominiums,
the liquidation business, which sells income-generating properties such as residential properties and offices, the real estate leasing business, and the real estate
management business.
Energy Business sells electricity generated from solar and other wind, biomass and other renewable energy to electric power companies to generate stablerevenues.
Asset Management Business utilizes our extensive expertise, know-how, and network accumulated in real estate and renewable energy to manage J-REIT and
private funds and provide excellent investment-opportunities and solid Assets administration services.

2.Methods of calculating the amount of Net sales, Profit or loss, Assets, and Liabilities Items in Other for each Reportable segments
The accounting methods used for Report of business Segment are generally the same as those described in "Basis of Presenting the Consolidated Financial
Statements," except for the valuation standards for inventory Assets.
Inventories are valued at book value after devaluation based on a decline in profitability.
Reportable segments earnings are Operating income based figures.
Intersegment revenues and transfers are based on prevailing market prices.

- 137 -

3.Information on the amount of Net sales, Profit or loss, Assets, and Liabilities Items in Other for each Reportable segments, as well as information on the
breakdown of revenue
End of Previous Consolidated Accounting Period (From April 1, 2022 to 31 March, 2023)(Millions of yen)
Reportable segments
Real EstateBusiness

Energy Business

AssetManagement
Business

Other(NOTE)

Total

Total

Net sales
Revenue arising from contracts with customers

133,291

9,045

1,096

143,434

4,219

147,653

5,819

-

-

5,819

-

5,819

139,110

9,045

1,096

149,253

4,219

153,472

Intersegment Net sales
Or the amount transferred

-

-

-

-

-

-

Total

139,110

9,045

1,096

149,253

4,219

153,472

Segment income (loss) (△)

7,906

△956

322

7,271

△241

7,030

Segment assets

181,226

120,820

2,052

304,099

5,373

309,473

Segment liabilities

161,822

111,390288

273,501

3,974

277,476

Depreciation and amortization

362

2,183

7

2,553

86

2,639

Amortization of goodwill

78

-

-

78

-

78

Interest expenses

1,256

683

0

1,939

11

1,951

Increased amount of Property, plant and equipment
and Intangible assets

16,95752,4852

69,44596

69,542Other revenue
Net sales to customers

Items in Other(NOTE)"Other" Category is a business Segment not included in Reportable segments and includes construction subcontracting and repair work.

- 138 -

Current Consolidated Fiscal Year (From April 1, 2023 to March 31, 2024)(Millions of yen)
Reportable segments
Real EstateBusiness

Energy Business

AssetManagement
Business

Other(NOTE)

Total

Total

Net sales
Revenue arising from contracts with customers

156,933

13,849734

171,517

7,805

179,322

5,871

-

-

5,871

-

5,871

162,804

13,849734

177,388

7,805

185,194

Intersegment Net sales
Or the amount transferred

-

-

-

-

-

-

Total

162,804

13,849734

177,388

7,805

185,194

Segment income (loss) (△)

13,7902,026△34

15,782△325

15,457

Segment assets

178,033

113,998935

292,967

7,264

300,232

Segment liabilities

157,048

117,604

110

274,763

3,562

278,325

Depreciation and amortization

344

4,585

5

4,935

84

5,020

Amortization of goodwill

78

-

-

78

-

78

Interest expenses

1,315

1,544

0

2,860

2

2,862

Increased amount of Property, plant and equipment
and Intangible assets

16,32022,960039,281

1,231

40,513

Other revenue
Net sales to customers

Items in Other(NOTE)"Other" Category is a business Segment not included in Reportable segments and includes businesses such as construction and Hotel operations.

- 139 -

4.Major Details of Difference and Difference between Reportable segments Total and Carrying value (items related to reconciliation of differences)(Millions of yen)
End of Previous Consolidated Accounting

Net sales

Current Consolidated Fiscal Year

PeriodReportable segments Total
Net sales of Category in Other
Elimination of inter-segment transactions
Net sales of Consolidated Financial Statements

149,253

177,388

4,219

7,805

-

-

153,472

185,194(Millions of yen)

End of Previous Consolidated Accounting

ProfitCurrent Consolidated Fiscal Year

PeriodReportable segments Total

7,271

15,782

Benefits of Other's Category

△241

△325

Elimination of inter-segment transactions--

Amortization of goodwill

-

-

7,030

15,457

Operating income of Consolidated Financial Statements(Millions of yen)
End of Previous Consolidated Accounting

AssetsCurrent Consolidated Fiscal Year

PeriodReportable segments Total

304,099

292,967

Other's Category property

5,373

7,264

△97,348△62,756

129,544

99,971

341,669

337,447

Offset and Elimination of Obligations to Administration Divisions of
Head Office
Corporate assets (Note)
Total assets of Consolidated Financial Statements(NOTE)Corporate Assets is a Assets that is not attributable to Reportable segments. Major items include assets related to Cash and deposits and Administration
Divisions and deferred tax assets.
(Millions of yen)
End of Previous Consolidated Accounting

Liabilities

Current Consolidated Fiscal Year

PeriodReportable segments Total
Other's Category Debt

273,501

274,763

3,974

3,562

△44,814△44,596

43,86432,049276,527

265,778

Offset and Elimination of Obligations to Administration Divisions of
Head Office
Corporate liabilities (Note)
Total liabilities of Consolidated Financial Statements(NOTE)Corporate Liabilities is a Liabilities that is not attributable to Reportable segments. The main item is loans payable, etc.
(Millions of yen)
Reportable segments Total
Items in Other

Depreciation and amortization
Amortization of goodwill
Interest expenses

Other

Adjusted amount

Carrying value

Previous
consolidated
Fiscal yearThis
consolidated
company
Fiscal year

Previous
consolidated
Fiscal yearThis
consolidated
company
Fiscal year

Previous
consolidated
Fiscal yearThis
consolidated
company
Fiscal year

Previous
consolidated
Fiscal yearThis
consolidated
company
Fiscal year

2,553

4,935

86

84

380

350

3,020

5,370

78

78

-

-

311

430

390

509

1,939

2,860

11

2

129

△66

2,080

2,795

- 140 -

Reportable segments Total
Items in Other

Other

Adjusted amount

Carrying value

Previous
consolidated
Fiscal yearThis
consolidated
company
Fiscal year

Previous
consolidated
Fiscal yearThis
consolidated
company
Fiscal year

Previous
consolidated
Fiscal yearThis
consolidated
company
Fiscal year

Previous
consolidated
Fiscal yearThis
consolidated
company
Fiscal year

69,44539,28196

1,231△48,704△13,871

20,837

26,641

Property, plant and equipment andintangibles
Increased Fixed assets (Note)(NOTE)Increased amount of Property, plant and equipment and Intangible assets's Adjusted amount is the amount of Goodwill accrued, Head Office Buildings andother capital expenditures that are not allocated to Reportable segments, and the amount of elimination of transactions between Segment.

- 141 -

[Related Information]
End of Previous Consolidated Accounting Period (From April 1, 2022 to 31 March, 2023)
1.Information for each product and service
This information is omitted because the same information is disclosed in Segment Information.

2.Information for each region(1)Net sales
This information is omitted because Net sales to customers in Japan accounts for more than 90% of Net sales in the consolidated statements of income.

(2)Property, plant and equipment
Disclosure is omitted because the amount of Property, plant and equipment located in Japan exceeds 90% of the amount of Property, plant and equipmenton the consolidated balance sheet.

3.Information for each major customer
Not applicable.

Current Consolidated Fiscal Year (From April 1, 2023 to March 31, 2024)
1.Information for each product and service
This information is omitted because the same information is disclosed in Segment Information.

2.Information for each region(1)Net sales
This information is omitted because Net sales to customers in Japan accounts for more than 90% of Net sales in the consolidated statements of income.

(2)Property, plant and equipment
Disclosure is omitted because the amount of Property, plant and equipment located in Japan exceeds 90% of the amount of Property, plant and equipmenton the consolidated balance sheet.

3.Information for each major customer
Not applicable.

- 142 -

[About Fixed assets's Impairment loss per Reportable segments]
End of Previous Consolidated Accounting Period (From April 1, 2022 to March 31, 2023)(Millions of yen)
Real Estate BusinessImpairment loss

EnergyBusiness-

Asset Management
Business-

Corporate andeliminations

Others (Note)

-

48

Total
-

48

(NOTE)The amount of "Other" is related to Hotel business.
Current Consolidated Fiscal Year (From April 1, 2023 to March 31, 2024)(Millions of yen)
Real Estate BusinessImpairment loss

EnergyBusiness

39

Asset Management
Business
13

Corporate andeliminations

Others (Note)

-

455

Total
-

508

(NOTE)The amount of "Other" is related to Hotel business.
[Amortization of goodwill and unamortized Balance per Reportable segments]
End of Previous Consolidated Accounting Period (From April 1, 2022 to March 31, 2023)(Millions of yen)
Real Estate Business
Amortization for theyear
Term end Balance

EnergyBusiness

Asset Management
Business

Corporate andeliminations (Note)

Other

Total

78

-

-

-

311

390

98

-

-

-

3,820

3,918

(NOTE)The amount of Corporate and eliminations is amortized and unamortized Balance related to corporate Goodwill not attributable to Reportable segments.

Current Consolidated Fiscal Year (From April 1, 2023 to March 31, 2024)(Millions of yen)
Real Estate Business
Amortization for theyear
Term end Balance

EnergyBusiness

Asset Management
Business

Corporate andeliminations (Note)

Other

Total

78

-

-

-

430

509

19

-

-

-

3,400

3,420

(NOTE)The amount of Corporate and eliminations is amortized and unamortized Balance related to corporate Goodwill not attributable to Reportable segments.

[About Negative Goodwill gains per Reportable segments]
End of Previous Consolidated Accounting Period (From April 1, 2022 to March 31, 2023)
Not applicable.

Current Consolidated Fiscal Year (From April 1, 2023 to March 31, 2024)
Not applicable.

- 143 -

[Related party information]
Related party transactions(1)Consolidated Financial Statements Submitting Company and Related party transactions
Officers and Major Shareholders of the Company Submitting Consolidated Financial Statements (limited to individuals), etc.
End of Previous Consolidated Accounting Period (From April 1, 2022 to March 31, 2023)
Not applicable.

Current Consolidated Fiscal Year (From April 1, 2023 to March 31, 2024)
Not applicable.

(2)Consolidated Financial Statements Submitting Company's Consolidated subsidiaries and Related party transactions
Officers and Major Shareholders of the Company Submitting Consolidated Financial Statements (limited to individuals), etc.
End of Previous Consolidated Accounting Period (From April 1, 2022 to March 31, 2023)
Not applicable.

Current Consolidated Fiscal Year (From April 1, 2023 to March 31, 2024)
Not applicable.
(Per Share Information)
End of Previous Consolidated
Accounting Period(From April 1, 2022
To 31 March, 2023)

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)

1 Shares Per share Net assets

558.95 yen

596 yen 90 yen

Net income per share

41.90 yen

7,439 yen

Diluted Net income per share

41.58 yen

7,372 yen

End of Previous Consolidated
Accounting Period(From April 1, 2022
To 31 March, 2023)

Current Consolidated Fiscal Year
(From April 1, 2023
To 31 March, 2024)

4,584

8,178

-

-

4,584

8,178

109,403109,938

-

-

852

990

(852)

(990)

(NOTE)The basis for calculation of Net income per share and Diluted Net income per share is as follows.

Net income per share
Net income attributable to owners of parent

Net income not applicable to common shareholders

Net income attributable to owners of parent related to Common stock

Average number of shares during the period(Millions ofyen)(Millions ofyen)(Millions ofyen)(Thousands ofShares)Diluted Net income per share
Net income attributable to owners of parent Adjustments

Common stock growth(Millions ofyen)(Thousands ofShares)(Subscription rights to shares (Thousands of Shares))
Summary of dilutive shares not included in the calculation of diluted Net income per sharebecause they have no dilutive effect- 144 ---

(Significant Subsequent Events)(Issuance of New Shares through Public Offering and Disposal of Treasury stock)
At Board of Directors held on May 20, 2024, we resolved to issue new shares and sell Disposal of Treasury stock and our Equity securities, and the payment
and disposition were completed on June 4, 2024. An overview is as follows.
1.Issuance of new Equity securities through public offering(1) Class of shares and numbers issued

Common stock 16 million Shares(2) Issue price458 yen per Shares(3) Aggregate offer price

7,328 Millions of yen(4) Amount to be paid

439.08 yen per Shares(5) Total amount paid

7,025 Millions of yen(6) Increased amount of Capital stock and Legal capital surplus

Amount of Capital stock increased 3512 Millions of yen
Amount of Legal capital surplus increased 3512 Millions of yen(7) Payment dateJune 4, 2024

2.Disposal of Treasury stock through Public Offering(1) Treasury Class of shares disposed of and number

Common stock 6 million Shares(2) Disposal price458 yen per Shares(3) Total disposal price

2,748 Millions of yen(4) Amount to be paid

439.08 yen per Shares(5) Total amount paid

2,634 Millions of yen(6) Payment dateJune 4, 2024

3.Use of proceeds from the current offering
Approximate proceeds from the public offering and the following (the "issuance of new shares through a third-party allotment of new shares") up to Total
11,057 Millions of yen will be used up to 9,057 Millions of yen by September 2026 to fund investments and loans to MIRARTH Energy Solutions, Inc., ourConsolidated subsidiaries, and 2,000 Millions of yen by April 2025 to fund investments and loans to Takara Leben Co., Ltd., our Consolidated subsidiaries.
(Issuance of New Shares through Third-Party Allotment of Shares)
At Board of Directors held on May 20, 2024, we resolved to issue new shares through a third-party allotment to SMBC Nikko Securities Co., Ltd. inconnection with an over-allotment offering. An overview is as follows.
1.Issuance of new Equity securities through third-party allotment of new shares(1) Recruitment method

Capital increase through third-party allotment (secondary offering through overallotment)(2) Recruitment Class of shares and numbers

Common stock 3.3 million Shares(3) Amount to be paid

439.08 yen per Shares(4) Total amount paid

Up to 1448 Millions of yen(5) Increased amount of Capital stock and Legal capital surplus

Up to 724 Millions of yen of incremental Capital stock
Up to 724 Millions of yen of incremental Legal capital surplus(6) Application dateJuly 1, 2024

(7) Payment dateJuly 2, 2024

(8) Allottee

SMBC Nikko Securities Inc.

2.Use of proceeds from the current offering
This is the same as the above (Issuance of new shares through public offering and Disposal of Treasury stock) 3. Use of proceeds.

- 145 -

⑤[Consolidated Supplementary Schedule][Bonds payable Schedule]

Company Name

Brand

MIRARTH Holdings Co., Ltd.

MIRARTH Holdings Co., Ltd.

MIRARTH Holdings Co., Ltd.

Issue Date

Second Unsecured Bonds
payableThird Unsecured Bonds
payableFourth Series of Unsecured
Bonds payable
Second Unsecured Bonds

Takara Leben Co., Ltd.

payableThird Unsecured Bonds

Takara Leben Co., Ltd.

payableFourth Series of Unsecured

Takara Leben Co., Ltd.

Bonds payable

Takara Leben Co., Ltd.

5th Unsecured Bonds payable
11th Unsecured Bonds

Takara Leben Co., Ltd.

payable12th Unsecured Bonds

Takara Leben Co., Ltd.

payable13th Unsecured Bonds

Takara Leben Co., Ltd.

payable14th Unsecured Bonds

Takara Leben Co., Ltd.

payable15th Unsecured Bonds

Takara Leben Co., Ltd.

payable16th Unsecured Bonds

Takara Leben Co., Ltd.

payable17th Unsecured Bonds

Takara Leben Co., Ltd.

payable18th Unsecured Bonds

Takara Leben Co., Ltd.

payable19th Unsecured Bonds

Takara Leben Co., Ltd.

payableTakara Leben Co., Ltd.

20th Collateral Bonds payable
No Collateral Bonds payable

Takara Leben Co., Ltd.

at 21stLeben Clean Energy Co., Ltd.

Leben Clean Energy Co., Ltd.

First Unsecured Bonds
payableSecond Unsecured Bonds
payableTotal

Balance at the
beginning of theperiod(Millions of yen)

January 24, 2020

2,600

October 6, 2023-

October 6, 2023

Term end Balance(Millions of yen)Interest rate (%) Collateral

2,600

Maturity date

1.50

No

March 24, 2020

2,000

1.45

No

October 6, 2026

-

3,000

1.60

No

October 6, 2027

June 30, 2020

250

250

0.30

No

June 30, 2027

September 30, 2020

100

100

0.02

No

September 30, 2025

March 25, 2021

300

300

0.30

No

March 25, 2026

September 24, 2021

50

0.37

No

September 25, 2024

June 30, 2020

100

0.37

No

June 30, 2025

0.45

No

September 15, 2023

(2,600)

50
(50)
100

100

September 15, 2020

-

(100)

September 18, 2020

100

100

0.60

No

September 18, 2025

September 30, 2020

100

100

0.40

No

September 30, 2025

January 20, 2021

100

100

0.39

No

January 20, 2026

0.19

No

February 5, 2026

0.36

No

February 19, 2026

0.05

No

December 15, 2026

0.27

No

January 20, 2027

February 5, 2021

February 19, 2021

December 15, 2021

60

40

(20)

(20)

50

50

80

60

(20)

(20)

80

60

(20)

(20)

September 25, 2023

-

300

0.57

No

September 25, 2026

October 25, 2023

-

300

0.25

No

October 25, 2026

135

105

(30)

(30)

0.70

No

September 29, 2027

0.70

No

December 29, 2026--

January 20, 2022

September 29, 2022

December 29, 2023

-

-

-

200
(66)

4,205

9,815

(190)

(2,806)-(NOTE)1.() Figures in this document represent scheduled redemption amounts of Within 1 year.
2.The redemption schedule for the 5 years after the consolidated balance sheet date is as follows:
Within 1 year
(Millions of yen)
2,806

Due in 1-2 years(Millions of yen)

Due after 2 years through Due after 3 years through Due after 4 years through3 years
4 years
5 years(Millions of yen)
(Millions of yen)
(Millions of yen)

1,006

2,736

- 146 -

3,265-

[Schedule of Borrowings]
Balance at the
beginning of theperiod(Millions of yen)

Term end Balance(Millions of yen)

Short-term borrowings

18,06525,621

0.95-

Non-recourse Short-term borrowings

74,004---Long-term loans payable due within 1 year

25,997

44,102

1.00

-

34

34

-

-

104,828

130,673

1.32

From April 2025.
December. 2058

249

214

-

September. 2025
2031 December

223,180

200,647

Category

Lease obligations due within 1 year
Long-term loans payable (excluding those to be repaid within 1 year)

Lease obligations (excluding obligations due within 1 year)
Total

Average interest
rate
(%)

-

Maturity-(NOTE)1. For Average interest rate, the weighted Average interest rate for Term end borrowing Balance is presented.
2.Lease obligations's Average interest rate is not presented because Lease obligations is recorded in Consolidated Balance Sheets at the amount prior todeducting the interest equivalent included in the total Lease fee.
3.The aggregate annual maturities of Long-term loans payable and Lease obligations (excluding obligations due within 1 year) for the 5 years following theconsolidated balance sheet date are as follows:
Due after 2 years through 3
years(Millions of yen)Due in 1-2 years(Millions of yen)
Long-term loans payable

Due after 3 years through 4
years(Millions of yen)

Due after 4 years through 5
years(Millions of yen)

45,154

18,40913,467

11,018

33

32

31

31

Lease obligations[Schedule of asset retirement obligations]
The amounts of Asset retirement obligations at the beginning of Current Consolidated Fiscal Year and End of the consolidated financial year are not more than
100 times less than Total amounts of Liabilities and Net assets at the beginning of Current Consolidated Fiscal Year and End of the consolidated financial year,
and therefore are omitted in accordance with Article 92-2 of the Ordinance on Consolidated Financial Statements.
(2)[Other]
Quarterly information for the current consolidated fiscal year
(Cumulative period)

Net sales (Millions of yen)

1st quarter2nd quarter

Third quarter

Current Consolidated
Fiscal Year

28,137

59,17993,279185,194

98

719

△298

12,991△218

87△1,461

8,178

△1.99

0.79

△13.3074.39

Quarterly loss (△) (Millions of yen) before income taxes andminority interests (Quarterly income before income taxes andminority interests)
Quarterly (current term) net income (loss) (△) attributable toowners of the parent (Millions of yen)
Quarterly (current term) net income (loss) (△) per share (Yen)(Accounting period)

1st quarter2nd quarter

Third quarter

4th quarter

Quarterly net income per share or 1 Shares Quarterly net loss(△) (Yen)△1.99- 147 -

2.78

△14.0787.56

2[Financial Statements](1)[Financial Statements]①[Balance Sheet](Millions of yen)
Prior taxable year
(March 31,2023)

Current fiscal year
(March 31,2024)

AssetsCurrent assets
Cash and deposits

12,191

Accounts receivable※1,※3

Accounts receivable-other※3

Real estate for sale

14,610※1,※2

45,220※2

Advance payments

16,689
※1,※3

2,600

※1,※2

Power generation facilities for sale
Real estate for sale in progress

585

2,676

※3

676

※1,※2

14,153※1,※2

31,949

291

-

3,051

2,380

※2,※3

1,092

※3

Short-term loans to affiliates

※3

5,920

※3

Other

※3

4,529

※3

Prepaid expenses

620

7,585
6,763

Allowance for doubtful accounts

△275

△275

Total current assets

89,821

83,220

Fixed assets
Property, plant and equipment
Buildings※1,※2

Structures

7,504

Machinery and equipment※1,※2

Tools, furniture and fixtures※1,※2

Construction in progress

3,865

※1

77

177

3,341

※1,※2

23,418

※1,※2

2,532

※1,※2

※1,※2

Total property, plant and equipment

6,993

※1,※2

※1,※2

Land

※1,※2

271

※1,※2

37,66978

11,814
1,025

23,432Intangible assets
Land Lease Right
Software

※1

491

※1

242

※1,※2

160

※1

283

Goodwill

98

Other

72

19
79

Total intangible assets

823

624

Investments and other assets
Investment securities

2,515

Stocks of subsidiaries and affiliates※1

18,4472,049※122,039Securities of affiliates of Other497

13,868Investments in capital

277

358

Membership

44

71

Lease deposits

966

840

100

-

Long-term loans receivable
Long-term loans receivable from subsidiaries and affiliates※3

Deferred tax assets
Other

1,530

-

467

408

1,827

1,722

26,67441,35865,16765,416

Bonds payable issuance costs

8

41

Deferred assets Total

8

41

154,996

148,678※2

Total investments and other assets
Total fixed assets
Deferred assets

Total assets- 148 -

(Millions of yen)
Prior taxable year
(March 31,2023)

Current fiscal year
(March 31,2024)

Liabilities
Current liabilities
Notes payable

5,591

14,308

Accounts payable

※3

2,023

※3

3,552

Short-term borrowings

※1

7,609

※1

5,688

Current portion of bonds payable-

Current portion of long-term loans payable※1

Accounts payable-other

18,280

※3

2,600
※1

1,872

24,831※3988

Accrued expenses

23

44

Income taxes payable

113

1,930

Advances received

6,439

1,660

Deposits received

※3

547

242

Deferred revenues

41

Bonus Allowance

14

3

Compensation for completed construction Allowance

305

299

Other
Total current liabilities

※3

37

3

338

42,86556,526

Fixed liabilities
Long-term loans payable※1,※3

Bonds payable

55,937※1

29,840

2,600

5,000

Lease and guarantee deposits received

620

421

Benefit Allowance

11

2

Asset retirement obligations

25

26

Total Fixed liabilities

59,19435,290102,059

91,817

4,819

4,819

Legal capital surplus

4,817

4,817

Other Capital surplus

3

34

Capital surplus Total

4,820

4,851

92

92

General reserve

14,681

14,681Retained earnings carried forward

32,52336,097

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

Retained earnings
Legal reserve
Other Retained earnings

Retained earnings Total

47,29750,870Treasury stock△4,174△4,066

Total shareholders' equity

52,76256,476

Net unrealized gains on available-for-sale securities

△45

107

Total valuation and translation adjustments

△45

107

Valuation and translation adjustments

Subscription rights to shares
Total net assets
Total liabilities and net assets- 149 -

220

277

52,93756,861

154,996

148,678

②[Income Statement](Millions of yen)
Prior taxable year
(From April 1, 2022
To 31 March, 2023)

Current fiscal year
(From April 1, 2023
To 31 March, 2024)

Net sales
Real Estate Business income※1

Energy Business income

72,556

※1

4,475

※1

※1

Other Businesses income※186,590
1,091

333

150

Operating revenue
Affiliated companies Dividend income
Net sales and operating revenue Total

-

1,392

77,36489,226

Cost of sales
Real Estate Business cost

※1

Energy Business cost

58,169※1

4,439

Other Businesses cost

※1

Cost of sales Total

63,167Gross profit

558

14,197

Selling, general and administrative expenses※1,※2

Operating income

10,103※1

73,068

※1

1,164

※1

271

74,503
14,722
※1,※2

4,093

7,132
7,590

Non-operating income
Interest income※1

Dividend income※1

Silent partnership Profit

86-

Commission received

※1

904

46
※1

49

Miscellaneous income

※1

509

Total non-operating income

1,550

81

404
21

※1

1,060
1,614

Non-operating expenses
Interest expenses

※1

731

Loss on investments in silent partnerships

415

Miscellaneous expenses

191

Total non-operating expenses
Ordinary income

※1

706

※1

161

-

1,338

867

4,305

8,336

Extraordinary income
Gain on sales of Fixed assets

026Gain on sales of investment securities-

146

Gain on sales of stock of affiliates-

300

Total extraordinary income

0473

Extraordinary loss
Loss on sales of Fixed assets

95-

Impairment loss

48

455

Extraordinary losses Total

143

455

4,162

8,354

Income taxes, inhabitant taxes and business taxes

225

2,145

Income tax adjustments

276

△0

Total income and other taxes

502

2,145

3,659

6,209

Income before income taxes

Net income- 150 -

[Cost of sales Statement]
1.Real Estate Business cost Statement
Prior taxable year
(From April 1, 2022
To 31 March, 2023)

Category
Purchase Land, etc.

Notes
NumberComposition
ratio
(%)

Amount (Millions of yen)

2

Current fiscal year
(From April 1, 2023
To 31 March, 2024)

Amount (Millions of yen)

Composition
ratio
(%)

24,43042.0

29,655

40.6

31,55254.2

40,867

55.9

Taxes and dues

346

0.6

220

0.3

Depreciation and amortization

175

0.3

240

0.3

Maintenance and management fee

727

1.3

563

0.8

Other

936

1.6

1,520

2.1

58,169100.0

73,068100.0

Outsourced construction costs

Real Estate Business cost
(NOTE)1. Cost accounting is based on individual cost accounting.

2.The amount of inventory Assets write-downs in Prior taxable year is △1,032 Millions of yen (△ is reversal amount).
2.Energy Business cost Statement
Prior taxable year
(From April 1, 2022
To 31 March, 2023)

Category

Notes
NumberCurrent fiscal year
(From April 1, 2023
To 31 March, 2024)
Composition
ratio
(%)

Amount (Millions of yen)Amount (Millions of yen)

Composition
ratio
(%)

Cost of sales of power generation
facilities

-

-

291

25.0

Taxes and dues

35

0.8

60

5.2

Depreciation and amortization

625

14.1

521

44.9

Maintenance and management fee

113

2.6

153

13.2

3,531

79.5

10

0.9

133

3.0

125

10.8

4,439

100.0

1,164

100.0

Rent expenses
Other
Energy Business cost

- 151 -

③[Statement of Changes in Shareholders' equity]
Prior taxable year (From April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders' equity
Capital surplus

Other Retained earnings

Capital stock

Balance at the beginning of theperiodRetained earnings

Legal capitalsurplus

4,819

Other' equity
Retained earnings

Capital surplus
Total

Legal reserve

-

4,817

92

4,817

Retained earnings
Total

General reserve

Carry-over profit
Surplus14,68130,82845,602△1,963△1,963

3,659

3,659

Change during the year
Dividend of surplus
Net income
Disposal of Treasury stock3

3

Net changes of items other thanShareholders' equity
Total changes of items during theperiodTerm end Balance

-

-

3

3

-

-

1,695

1,695

4,819

4,817

3

4,820

92

14,681

32,52347,297

Shareholders' equity

Treasury stock
Balance at the beginning of theperiod△4,456

Valuation and translation adjustments

Total shareholders' equity

Net unrealized gains onavailable-for-salesecurities

Total valuation andtranslation adjustments

50,781

468

468

Subscription rights toshares197

Total net assets

51,447

Change during the year
Dividend of surplus
Net income
Disposal of Treasury stock282△1,963△1,963

3,659

3,659

285

285

Net changes of items other thanShareholders' equity
Total changes of items during theperiodTerm end Balance

△514

△514

22

△491

282

1,980

△514

△514

22

1,489

△4,17452,762

△45

△45

220

52,937- 152 -

Current fiscal year (From April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders' equity
Capital surplus

Other Retained earnings

Capital stock

Balance at the beginning of theperiodRetained earnings

Legal capitalsurplus

4,819

Other' equity
Retained earnings

Capital surplus
Total

Legal reserve

3

4,820

92

4,817

Retained earnings
Total

General reserve

Carry-over profit
Surplus14,681

32,52347,297△2,635△2,635

6,209

6,209

Change during the year
Dividend of surplus
Net income
Disposal of Treasury stock

31

31

Net changes of items other thanShareholders' equity
Total changes of items during theperiodTerm end Balance

-

-

31

31

-

-

3,573

3,573

4,819

4,817

34

4,851

92

14,68136,09750,870Shareholders' equity

Treasury stock
Balance at the beginning of theperiod△4,174

Valuation and translation adjustments

Total shareholders' equity

Net unrealized gains onavailable-for-salesecurities

Total valuation andtranslation adjustments

52,762△45△45

Subscription rights toshares220

Total net assets

52,937

Change during the year
Dividend of surplus
Net income
Disposal of Treasury stock108△2,635△2,635

6,209

6,209

140

140

Net changes of items other thanShareholders' equity
Total changes of items during theperiodTerm end Balance

153

153

56

210

108

3,713

153

153

56

3,924

△4,06656,476

107

107

277

56,861- 153 -

[Notes](Significant accounting policies)
1.Marketable securities(1) Held-to-maturity debt securities
Stated at amortized cost (straight-line method).
(2) Stocks of subsidiaries and affiliates, Securities of affiliates of Other
Stated at cost determined mainly by the moving-average method(3) Other in Securities
Other than shares, etc. without market priceStated at market value (all valuation differences are accounted for using the direct Net assets method, and the cost of securities sold is calculated using themoving-average method).
Stocks, etc. without market priceStated at cost determined mainly by the moving-average method

2.Inventory: Valuation standards and methods for Assets
Stated at cost determined by the specific identification method. (The carrying amount on the balance sheet is written down to reflect the decline in profitability.)

3.Depreciation of Fixed assets(1) Property, plant and equipment (excluding Leased assets)
Tangible assets are stated at cost. However, for Buildings (excluding facilities attached to Buildings) acquired on or after April 1, 1998 and Buildings
facilities and Structures acquired on or after April 1, 2016, The straight-line method is used.
Useful life for primary assets is as follows:
Buildings 3-50 years
Machinery and equipment 7-17 years(2) Intangible assets (excluding Leased assets)
Software for internal use is amortized using the straight-line method over the estimated useful life of 5 years.
(3) Leased assets
Leased assets related to finance lease transactions with ownership transfer
The same depreciation methods applied to self-owned Fixed assets are used.
Leased assets under finance leases that do not transfer ownership
The straight-line method is used with the lease period as the useful life and the residual value as zero.

4.Accounting standards for Allowance(1) Allowance for doubtful accounts
Allowance for doubtful accounts is provided at an amount equal to Actual rate for ordinary receivables and an amount equal to the estimated uncollectible
amount for certain receivables such as doubtful receivables based on the individual collectability.
(2) Bonus Allowance
In order to provide for the payment of bonuses to employees, the amount of estimated future bonuses to be paid in the current fiscal year is recorded.
(3) Compensation for completed construction Allowance
In order to provide for losses and compensation service expenses arising from defects after delivery of company-constructed buildings, etc., the Company
records Actual for repair expenses and other expenses related to previous company-constructed buildings, etc.
(4) Benefit Allowance
Provision for employees' retirement benefits is made based on the retirement benefit obligation at the end of the fiscal year. In calculating Benefit Allowance
and Retirement benefit expenses, a simplified method is applied that uses the retirement benefit obligation as the amount that would be required if all employees
voluntarily terminated their employment with Term end.

- 154 -

5.Revenue Recognition
Details of principal performance obligations and the normal timing of recognizing revenue in our principal businesses are as follows:(1) Real Estate Business①New condominium business
The new condominium business sells each condominium unit to general consumers and is obligated to deliver the property pursuant to a real estate sales
contract with a customer. Such performance obligations are satisfied at a point in time when the property is delivered and earning is recorded at the time of suchdelivery.
The transaction price is determined by the real estate sales contract, and in such contracts, the delivery date is generally the same as the date when the entire
amount of the sale price is received. Therefore, the payment of the sale price is received at the same time as the delivery of the property.
②Securitization business
The securitization business is a business of acquiring rental residential properties and office buildings, increasing Assets value through leasing andrenovation, and then selling them to operating companies, etc.
The performance obligations and the timing of satisfaction thereof, the method of determining transaction prices, and the timing of revenue recognition in the
Liquidation Business are the same as in the new condominium business described above.
(2) Energy Business
Energy Business is a business that derives revenues from the sale of operated power generation facilities and revenues from the sale of power generation
facilities.
The timing of performance obligations and their satisfaction, the methods of determining transaction prices, and the timing of revenue recognition in theproceeds from the sale of the active power generation Facilities are the same as in the new condominium business described above. In addition, revenue fromthe sale of power at power generation facilities is recorded primarily at the time of delivery to customers pursuant to power purchase agreements.
(3) Group Business Management Business
Revenues from the Group-wide business administration business consist of Dividend income subsidiaries and affiliates.
For Dividend income affiliates, earning is recorded in Effective date of dividends.

6.Other Significant Items Forming the Basis for Preparation of Financial Statements
Accounting for consumption tax
Non-deductible consumption taxes related to assets are charged to income for the period in which they are incurred.
(Critical Accounting Estimates)
・Fixed assets's Impairment loss
(1)Amount recorded as Impairment loss in Current fiscal year's financial statements
Prior taxable year

Current fiscal year

Buildings

24 Millions of yen-Millions of yen

Land

24 Millions of yen

455 Millions of yen

48 Millions of yen

455 Millions of yen

Total(2)Details of Significant Accounting Estimates for Identified Items
We group each property individually as the smallest unit that generates cash by using assets.
As described in "1. Consolidated Financial Statements, (1) Consolidated Financial Statements, (Consolidated Statements of Income) ※6 Impairment loss"
under Current fiscal year, Impairment loss 455 Millions of yen is recognized as the recoverable amount based on the appraisal value by a real estate appraiser. The
appraisal value, etc. is calculated based on the business plan of each asset group, comprehensively considering the surrounding environment, etc.
If the assumptions used in these estimates require revision due to uncertain future changes in economic conditions or other factors, additional Impairment loss
(Extraordinary loss) may occur in the financial statements for the following Business Year and thereafter.
(Changes in Presentation Method)(Change in Presentation Method due to Transition to Holding Company Structure)
We transitioned to a holding company structure with October 1, 2022.
As a result, dividends from subsidiaries are a source of our revenues. Accordingly, "Dividend income of affiliated companies," which was included in"Dividend income" under Non-operating income until Prior taxable year, is presented separately as "Dividend income of affiliated companies" under operating
revenues from Current fiscal year.
Prior taxable year's "Dividend income of Affiliated Companies" is 697 Millions of yen.

- 155 -

(Notes to the Balance Sheet)※1 Assets pledged as Collateral and corresponding liabilities are as follows:(1)Assets pledged as Collateral
Prior taxable year
(March 31,2023)
Accounts receivable

Current fiscal year
(March 31,2024)

87 Millions of yen

45 Millions of yen

Real estate for sale

11,603

7,257

Real estate for sale in progress

36,366

26,127

Buildings

5,664

4,985

Structures

124

91

2,723

2,379

4

12

Land

19,866

8,665

Construction in progress

2,053

1,025

232

232

0

0

3,940

6,032

82,66856,855

Machinery and equipment
Tools, furniture and fixtures

Land Lease Right
SoftwareInvestments in subsidiaries and affiliates (Note)
Total(NOTE)1898 Millions of yen of Prior taxable year's Assets pledged as Collateral are Collateral provided Assets for Financial institutions loans from Green Energy LLC.

(2)Debt to the above
Prior taxable year
(March 31,2023)
Short-term borrowings

7,376 Millions of yen

Current fiscal year
(March 31,2024)
5,688 Millions of yen

Current portion of long-term loans payable

14,79017,287Long-term loans payable

50,813

24,84072,98047,816Total※2 Change in holding purpose of Assets
Prior taxable year (March 31,2023)
In conjunction with the change in the holding purpose from development and leasing to resale, a portion of the real estate owned was transferred to Current
fiscal year as follows: Buildings 4,499 Millions of yen, Structures 47 Millions of yen, Tools, furniture and fixtures 32 Millions of yen, Land 7,746 Millions ofyen, Construction in progress 2,254 Millions of yen, and Software 0 Millions of yen to Real estate for sale and Real estate for sale in progress. Certain of Assets
were sold in Current fiscal year and 6314 Millions of yen of the 14,265 Millions of yen transferred to Real estate for sale were recorded in Cost of sales.
In addition, as a result of the change in the intent to hold a portion of Mega solar generation Facilities for resale, a long-term Prepaid expenses 90 Millions ofyen ("Current fiscal year" Prepaid expenses") was transferred to Millions of yen at Investments and other assets for Other 7 Power generation facilities for sale,
Machinery and equipment 143 Millions of yen, and Land 60 Millions of yen.
Current fiscal year (2024 March 31)
As a result of a change in the holding purpose from resale to Assets for business use, Current fiscal year transferred Real estate for sale in progress 7 Millionsof yen to Buildings 3 Millions of yen and Land 4 Millions of yen.
In addition, in conjunction with the change in the holding purpose of certain real estate holdings from development and leasing to resale, Current fiscal year
transferred 5,264 Buildings Millions of yen, Structures 143 Millions of yen, Tools, furniture and fixtures 22 Millions of yen, Land 11,072 Millions of yen, and1,635 Millions of yen to Real estate for sale. Certain of Assets were sold in Current fiscal year and 9,640 Millions of yen of the 18,137 Millions of yen transferred
to Real estate for sale were recorded in Cost of sales.

- 156 -

※3 Monetary claims and monetary liabilities to affiliated companies (excluding those expressed in Category)
Prior taxable year
(March 31,2023)
Short-term monetary claims

Current fiscal year
(March 31,2024)

10,276 Millions of yen

13,661 Millions of yen

Long-term monetary receivables

1,730

-

Short-term loans payable

1,900

530

36

-

Long-term debt

4 Contingent liabilities
Guarantees for loans from financial institutions
Prior taxable year
(March 31,2023)
Joint and several guarantee obligations to financial
institutions, etc. until the completion of the registration ofmortgage on our customer housing loans

Current fiscal year
(March 31,2024)

10,016 Millions of yen

2,441 Millions of yen

Takara Leben Co., Ltd.

3,000

1,200

Leben Zestock Co., Ltd.

2,337

845

Leben Clean Energy Co., Ltd.

1,930

2,537

Minato Vietnam Co., Ltd.

112

647

WISE ESTATE 3 Co., Ltd.

1,615

524

WISE ESTATE 8 Co., Ltd.

246

367

WISE ESTATE 10 Co., Ltd.

237

489

Takara Leben(Thailand)Co.,Ltd.

1,196

1,552

Total

20,691

10,606

5 In order to raise working capital efficiently, we have entered into overdraft and loan commitment agreements with 25 Financial institutions (44 Prior taxableyear). Unused Balance at the end of the fiscal year under these contracts are as follows:
Prior taxable year
(March 31,2023)
Maximum overdraft amount and loans
Total commitment
Loan balance
Net amount- 157 -

Current fiscal year
(March 31,2024)

46,341 Millions of yen

32,007 Millions of yen

28,63125,45817,7106,549

(Notes to Statements of Income)※1 Transactions with Affiliates
Prior taxable year
(From April 1, 2022
To 31 March, 2023)

Current fiscal year
(From April 1, 2023
To 31 March, 2024)

Turnover with business transaction
Net sales

4,115 Millions of yen

36,314 Millions of yen

Purchases

2,373

2,485

1,067

1,397

Excluding operating transactions with subsidiary※2 The approximate percentages of expenses in selling expenses are Prior taxable year 46%, Current fiscal year 47%, and the approximate percentages of expenses ingeneral and administrative expenses are Prior taxable year 54% and Current fiscal year 53%.
Major items and amounts of Selling, general and administrative expenses are as follows.
Prior taxable year
(From April 1, 2022
To 31 March, 2023)
Advertising expenses

Current fiscal year
(From April 1, 2023
To 31 March, 2024)

2,560 Millions of yen

1,158 Millions of yen

Sales commission

817

1,445

Promotion expenses

1,237

760

Salary allowance

1,013

75

257

7

Bonus Allowance provision
Retirement benefit expenses

45

2

Depreciation and amortization

136

148

(Notes to Securities)
Stocks of subsidiaries and affiliates
Balance sheet amount of stocks, etc. without market price(Millions of yen)
Category

Prior taxable year
(March 31,2023)

Investments in subsidiaries
Securities of affiliates of Other- 158 -

Current fiscal year
(March 31,2024)
18,44722,039497

13,868

(Deferred tax accounting)
1.Breakdown of Deferred tax assets and Deferred tax liabilities by major source
Prior taxable year
(March 31,2023)

Current fiscal year
(March 31,2024)

Deferred tax assets
Bonus Allowance in excess of tax limit

4 Millions of yen

1 Millions of yen

Allowance for doubtful accounts in excess of tax limit

84

84

Real estate for sale valuation loss denied

19

19

Denial of loss from membership revaluation

32

32

Retirement benefits Allowance in excess of tax limit

30

Excess depreciation expense disallowed for tax purpose

184

182

Impairment loss deny

399

163

Deferred consumption taxes

129

229

Income Taxes and Other Taxes Payable

26

110

Mandatory write-down of investment securities

3

3

Denial of asset retirement obligations

37

43

Tax Deferred assets

118

90

27

25

Subscription rights to shares

80

84

Loss on compensation for construction contracts denied

66

66

Rental and administrative expenses not recorded20

20

Shares of the Successor Corporation in Split

290

290

Gain (loss) on transfer Adjustment account-210

Net unrealized gains on available-for-sale securities

28-

Subtotal deferred tax assets

1,558

1,661

Valuation allowance

△537

△629

1,021

1,031

Valuation difference on assets received for merger

△551

△551

Net unrealized gains on available-for-sale securities

△1

△32

-

△38

Deferred income taxes Total liabilities

△553

△623

Net deferred tax assets (△: liability)

467

408

Compensation for completed construction Allowance in excess ofdeductible expenses

Deferred income taxes Total assets
Deferred tax liabilities

Gain (loss) on transfer Adjustment account2.Breakdown of significant differences between Statutory tax rate and Effective income tax rate by major item responsible for the difference
Prior taxable year
(March 31,2023)
Statutory tax rate

30.6%

Current fiscal year
(March 31,2024)
30.6%(Adjustment)
Increase in valuation allowance

△18.2

1.1

0.6

0.1

△5.1

△5.1

Per capita inhabitant tax

0.2

0.0

Investment gains and losses of associations, etc.

3.1

1.5

Other

0.9

△2.6

Effective income tax rate

12.1

25.7

Expenses not deductible for income tax purposes
Items that are not permanently included in gross profit, such as Dividend
income- 159 -

(Revenue Recognition)
Notes is omitted because the same Details is provided in "Notes Matters (Significant accounting policies) 5. Accounting Standards for Revenues and Expenses"
as the basis for understanding Revenue arising from contracts with customers.
(Significant Subsequent Events)(Issuance of New Shares through Public Offering and Disposal of Treasury stock)
At Board of Directors held on May 20, 2024, we resolved to issue new shares and sell Disposal of Treasury stock and our Equity securities, and the payment
and disposition were completed on June 4, 2024.
Notes is omitted because the same Details is provided in "Notes Matters (Significant Subsequent Events)" in the consolidated financial statements.

(Issuance of New Shares through Third-Party Allotment of Shares)
At Board of Directors held on May 20, 2024, we resolved to issue new shares through a third-party allotment to SMBC Nikko Securities Co., Ltd. inconnection with an over-allotment offering.
Notes is omitted because the same Details is provided in "Notes Matters (Significant Subsequent Events)" in the consolidated financial statements.

- 160 -

④[Supplementary Schedules][Property, plant and equipment Schedule](Millions of yen)
Beginningofthefiscal year
Balance

Current
periodIncrease

Current
periodDecreaseamountCurrent
periodAmortizati
onTerm end
Balance

Depreciation
Accumulat
ed amount

Term end
Acquisition
cost

Buildings

7,504

5,754

5,965

299

6,993

756

7,750

Structures

271

174

248

19

177

32

210

Machinery and equipment

3,865

-

-

523

3,341

1,505

4,846

Tools, furniture and fixtures

77

100

47

51

78

237

316

23,418345

11,949(455)-

11,814-

11,814

-

-

-

-

-

19

19

2,532

6,908

8,414

-

1,025

-

1,025

Total

37,66913,283

26,626(455)

894

23,432

2,551

25,984

Land Lease Right

491

-

249

-

242

-

-

Software

160

185

-

62

283

-

-

Goodwill

98

-

-

78

19

-

-

Other

72

202

195

-

79

-

-

823

387

445

141

624

-

-

Category

Type of property

Tangible
Fixed assets

Land
Leased assets
Construction in progress

Intangible
Fixed assets

Total(NOTE)1. Parentheses in parentheses () in "Decreased during current term" are the recorded amount of Impairment loss.
2.Major Details in the fiscal year under review were as follows.
Buildings

Acquisition of income-producing

5,733 Millions of yen

properties
Structures

Acquisition of income-producing

164 Millions of yen

properties
Land

Acquisition of income-producing

345 Millions of yen

properties
Construction in progress

Acquisition of income-producing

6,908 Millions of yen

properties
SoftwareObtaining a Other

185 Millions of yen[Allowance Schedule]

Category

Balance at the beginning of
the period(Millions of yen)

Increased during current
term(Millions of yen)

Decreased during current
term(Millions of yen)

Term end Balance(Millions of yen)

Allowance for doubtful accounts

275

-

-

275

Bonus Allowance

14

8

19

3

305

0

6

299

Compensation for completed construction
Allowance(2)[Major Assets and Liabilities's Details]
This information is omitted because the consolidated financial statements have been prepared.
(3)[Other]
Not applicable.

- 161 -

VI [Outline of Submitting Company's Equity securities Operations]
Business Year

From April 1 to 31-Mar

Annual Shareholders' Meeting

During June

Record Date

March 31

Record Date of dividends from surplus

September 30 and March 31

Number of Shares per Trading Unit

100 Shares

Purchase and additional purchase of Sharesless than 1 unit
(Special Account)Handling place

Sumitomo Mitsui Trust Bank, Limited, 1-4-1, Marunouchi, Chiyoda-ku, Tokyo
Transfer Agent Department

Administrator of Shareholder Registry(Special Account)
Sumitomo Mitsui Trust Bank, Limited, 1-4-1, Marunouchi, Chiyoda-ku, Tokyo

Brokerage house
Commissions for purchases and purchases───────
Amount separately specified as the amount equivalent to the commission for the entrustment of the sale andpurchase of shares
The method of public notices of the Company shall be electronic public notices. Provided, however, that in the

Posting of Public Notices

event of an incident or Other unavoidable circumstances that preclude electronic public notice, such notice shall be
published in the Nihon Keizai Shimbun.

Benefits to shareholders

Not applicable.

(NOTE)Pursuant to the provisions of the Articles of Incorporation of the Company, a Holder of Shares Less than 1 Unit may not exercise any rights other than the rights set
forth in each item of Article 189 II of the Companies Act, the right to make a request pursuant to the provisions of Article 166 I of the Companies Act, the right toreceive an allocation of Equity securities for subscription and an allocation of Subscription rights to shares for subscription in accordance with the number of
Equity securities held by a Shareholder, and the right to request the sale of Shares less than 1 unit.

- 162 -

VII. [Submitting Company Reference ]1[Information on Submitting Company's Parent Company]
We do not have a parent company, etc. as stipulated in Article 24-7-1 of the Financial Instruments and Exchange Act.

2[For Other Reference]
The following documents have been submitted between the commencement date of the current fiscal year and the filing date of the Securities Report.
(1) Securities Report Statement and its attached documents and confirmation
Submitted to Business Year (51st fiscal year) (From April 1, 2022 to 31 March, 2023) June 23, 2023 Director-General of the Kanto Local Finance Bureau(2) Internal Control Report and Attachment
Submitted to June 23, 2023 Director-General of the Kanto Local Finance Bureau(3) Annual Securities Report and confirmation(52nd 1st quarter) (From April 1, 2023 to June 30, 2023) filed with Director-General of the Kanto Local Finance Bureau on August 10, 2023
(52nd 2nd quarter) (From July 1, 2023 to September 30, 2023) filed with Director-General of the Kanto Local Finance Bureau on November 13, 2023
(52nd Third quarter) (From October 1, 2023 to December 31, 2023) filed with Director-General of the Kanto Local Finance Bureau on February 13, 2024
(4) Extraordinary Report
Submitted to June 26,2023 Director-General of the Kanto Local Finance Bureau
This is an extraordinary Report statement based on Article 19, II 9-2 of the Cabinet Office (Result of Voting Rights Exercised in Ordinary General Meeting of
Shareholders) regarding the disclosure of corporate Details, etc.
Filed with Director-General of the Kanto Local Finance Bureau on July 10, 2023
This is an extraordinary Report document based on Article 19 II Item 2 (Issuance of Subscription rights to shares) of the Cabinet Office Ordinance on
Disclosure of Corporate Details, etc.
Filed with Director-General of the Kanto Local Finance Bureau on July 10, 2023
This is an extraordinary Report document based on Article 19 II Item 2 (Issuance of Subscription rights to shares) of the Cabinet Office Ordinance on
Disclosure of Corporate Details, etc.
(5) Amendment to the Temporary Report Document Report
Filed with Director-General of the Kanto Local Finance Bureau on August 1, 2023
Amended and Restated Report filed on July 10, 2023, in connection with the Extraordinary Report (issued by Subscription rights to shares).
(6) Securities registration statement (public offering and over-allotment offering) and accompanying documents
Filed with Director-General of the Kanto Local Finance Bureau on May 20, 2024
(7) Securities Registration Statement (Allotment to For Other Person) and Documents Attached thereto
Filed with Director-General of the Kanto Local Finance Bureau on May 20, 2024
(8) Amendment of Securities Registration Statement
Filed with Director-General of the Kanto Local Finance Bureau on May 29, 2024
Amendment to Securities Registration Statement filed on May 20, 2024 (offering through general offering and over-allotment).
Filed with Director-General of the Kanto Local Finance Bureau on May 29, 2024
This is an amendment to the Securities Registration Statement (allotment to For Other) filed on May 20, 2024.

- 163 -

Part II. [Information on the Guarantee Company, etc. of the Submitting Company]
Not applicable.

- 164 -

Audit report of Independent Audit and Internal Control Audit report

June 26, 2024

MIRARTH HOLDINGS, Inc.

To the Board of Directors

Grant Thornton Taiyo LLC.
Tokyo Office

DesignatedLiability
Managing

LimitedPartners
Partner

Certified Public
Accountant

Tomohiro Ooki

DesignatedLiability
Managing

LimitedPartners
Partner

Certified Public
Accountant

Tetsuya Ishihara

DesignatedLiability
Managing

LimitedPartners
Partner

Certified Public
Accountant

Takafumi Shimokawa<Consolidated Financial Statements Audit>
Audit Comments
Audit Corporation has made an Audit to the consolidated financial statements of MIRARTH HOLDINGS, Inc. for the period from April 1, 2023 to March 31 2024, which
are listed in the "Accounting" section, which are Fiscal year's consolidated financial statements for the period from Consolidated Balance Sheets, the consolidated statements
of income, Comprehensive income, the consolidated statements of changes in Shareholders' equity, the consolidated statements of cash flows, the significant matters forming
the basis for the preparation of the consolidated financial statements, For Other I and the consolidated supplementary schedules, in order to provide a Audit certification
under the provisions of Article 193-2 Notes of the Financial Instruments and Exchange Act.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of MIRARTH HOLDINGS, Inc. andConsolidated subsidiaries as of March 31 2024, and the results of their operations and their cash flows for Fiscal year then ended in conformity with accounting principles
generally accepted in Japan.

Basis for Audit Opinion
Audit Corporation conducted its Audit in accordance with Audit principles generally accepted in Japan. Audit Corporation's liability under Audit standard is described in"Responsibility of Audit Persons in Audit" in the Consolidated Financial Statements. Audit Corporation is independent of the Corporation and its Consolidated subsidiaries
in accordance with the Code of Professional Ethics in Japan. As a Audit, the Corporation fulfills its For Other ethical responsibilities. We believe that Audit Corporation has
obtained adequate and appropriate Audit evidence that forms the basis for our opinion.

Highlights
As described in Notes on Significant Subsequent Events, on May 20, 2024, the Company resolved to issue new shares through a public offering and Disposal of Treasury
stock in Board of Directors, and the payment and disposition were completed on June 4, 2024. In addition, Board of Directors resolved to issue new shares through a thirdparty allotment in connection with the offering through over-allotment.
This matter does not affect the views of Audit Corporation.

Key Audit Considerations
Key Audit Considerations is Audit of Current Consolidated Fiscal Year's consolidated financial statements determined by Audit as a professional expert to be particularly
relevant. Key Audit Considerations is a correspondent matter in the process of Audit for the consolidated financial statements as a whole and in the formulation of Audit
Comments, and Audit Corporation does not express an opinion on such matters individually.

- 165 -

Impairment review of Fixed assets held for Energy Business
Details of Key Audit Considerations and Reasons for Determination

Response on Audit

The Company has positioned Energy Business as a growth business in the future,

Audit Corporation primarily carried out the following Energy Businessand has positioned it as a core business after Real Estate Business, and has changed impairments on its Fixed assets holdings:
to Policy, which ensures stable earnings through the ownership of power generation

・ We understood the roles of Be related Group companies in Details and Energy

Facilities, and as described in (Segment information, etc.) Segment Information 3.,

Business of the medium-to long-term Energy Business strategy throughthe Company has recorded 113,998 Millions of yen as a Energy Business Assets indiscussions with management, and reviewed the planning for investing in energy

Current Consolidated Fiscal Year. The Company is planning to acquire or develop

Assets based on the strategy. We also checked the funding plan underlying theEnergy Business Assets based on its medium-to long-term Energy Business strategy.

investment plan and examined the rationality and feasibility of the plan.

At the same time, the Company is monitoring and managing the profitability of its

・ The estimated useful lives of generation Facilities in the estimation of futurebusiness Assets. However, Impairment loss 13 Millions of yen has been recorded in

cash flows. The economic remaining useful lives of major Assets and their

Current Consolidated Fiscal Year for some power generation Facilities as describedComparison are based on published Energy Business with an outline of Be related

in Notes Matters (Consolidated Statements of Income) *6.

system and an inspection of an external assessment on machinery and equipment.

The Corporation considers generation Facilities as the smallest unit to generate・ Consideration was given to the consistency of future cash flows with the income

cash flow. This is considered to be impaired as the basic unit. The Companies assessand expenditure plan approved by Executive Committee, a Be related firm.

Impairment loss for generation Facilities with indicators of impairment and record an

・ In order to verify the reasonableness of the income and expenditure plan

Impairment loss to reduce the carrying amount to the recoverable amount when it isprepared by Be related companies for each generation Facilities, we asked about

determined that an Impairment loss should be recognized. Future cash flows by

the generation status of differences and reasons for the generation Facilities bygeneration Facilities are used to determine Impairment loss recognition and theComparison of the estimated sales volume and Actual used in the income andrecoverable amount, and such future cash flows are calculated based on the income

expenditure plan when acquiring or developing new power, and confirmed thatand expenditure plan approved by Executive Committee of Be related companies.

they are properly considered in the income and expenditure plan as the basis of

As described in Notes Matters (Critical Accounting Estimates), significant

future cash flows.

assumptions in estimating future cash flows are the projected volume of electricity

・ In connection with the forecast of electricity sales volume, which is the basis

sold and the unit price of electricity sold that will form the basis for future cash flows,

for future cash-flow electricity sales revenues, this paper discusses withthe duration of usage and the operational efficiencies of Energy Business based on

management measures to improve power generation efficiency for each power

the Medium-to Long-Term Energy Business Strategy.

generation Facilities, and examines the rationality and feasibility of the published

Energy Business Assets is expected to continue to grow and the significant

external data on output control prospects.

assumptions described above in estimating the future cash flows to be utilized in the・ Regarding the unit price of electricity sales, which is the basis for the revenue

impairment review of Fixed assets held for Energy Business involve uncertainties andfrom electricity sales in future cash flows, this paper discusses with therequire management's judgment, and Audit Corporation has determined that suchmanagement about a new system to replace the current system in the medium-to

matters constitute Key Audit Considerations.

long-term Energy Business strategy and the transition to a new sales strategy, andreviews the outline of the system announced, and examines the rationality andfeasibility.

- 166 -

Revenue Recognition for Sale Transactions of Real Estate and Generation Facilities
Details of Key Audit Considerations and Reasons for Determination

Response on Audit

The Corporation accounts for Net sales 185,194 Millions of yen in Current

Audit Corporation primarily performed the following Audit procedures inConsolidated Fiscal Year's consolidated statements of operations. This Net sales considering the revenue recognition associated with the sale of real estate in the
includes earnings from the sale of real estate in the Liquidation segment of Real Estate Liquidation segment and the sale of Energy Business generating Facilities in place.
Business and the sale of Facilities in Energy Business.

・ In order to understand Details of the transaction scheme, we inspected the

The sale transactions of these properties and power generation Facilities tend topurchase and sale contracts, etc. and asked the management.

involve a high degree of individuality in the terms of the transactions and a large

・ The transfer price was verified to be the amount based on the contract concluded

amount of transactions. Especially in the case of securitization of real estate usingwith a third party, in comparison with the sales contract. In addition, Comparison

special purpose companies, the Company may be continuously involved in the real

were conducted with real estate appraisal reports, etc. as needed, and Comparison

estate, etc. through entrusted management after the sale, partial ownership of an

were conducted with information such as rent announced by external organizations

equity interest in the assignee, etc., and the purchase and sale contract may be subject

regarding future cash flows and Discount rate used as the basis for real estate

to repurchase and Lease back provisions. As a result, it may be complicated toappraisals.

determine whether or not almost all of the risks and economic value related to the real

・ Regarding the degree of continuing involvement, we reviewed property

estate and power generation Facilities that are the premise of the sale transaction havemanagement contracts and silent partnership investment contracts to assess the

been transferred. If this judgment is incorrect, significant amounts of revenues will

impact on the transfer of risks and economic value related to real estate and power

be recorded for real estate and power generation Facilities sales transactions that are

generation Facilities.

not deemed to transfer substantially all of the risks and rewards to the transferee.

・ We reviewed and examined the purchase and sale contracts and other

Based on the above, Audit Corporation has determined that the revenue

documents for the existence of repurchase and Lease back provisions.

recognition for the sale transaction of real estate in the liquidation business and the・ The facts of delivery were verified by reconciling the accounting records withsale transaction of Facilities in operation in Energy Business constitutes Key Audit

the sales contract and the deposit vouchers.

Considerations.

・ In the case of securitization using a special purpose company, whether the
special purpose company does not fall under the category of a subsidiary, inspected
the silent partnership investment contract, etc., and examined the investment
relationship, etc. with the company and Consolidated subsidiaries.

Other description Details
Other description Details is the information included in Securities Report Statement, other than the consolidated financial statements and financial statements and these
Audit report. Management is responsible for preparing and disclosing Details listed in Other. The responsibility of Audit & Supervisory Board Members and Audit &Supervisory Board is to monitor the execution of Director's duties in the development and operation of Other description Details's Report processes.
This Audit does not include Audit Comments in the accompanying consolidated financial statements of Audit Corporation, and it does not express an opinion on Other
description Details.
The responsibility of Audit Corporation in Audit to the consolidated financial statements is to review, through Other description Details, whether there are material
differences between Other description Details and the consolidated financial statements or the knowledge obtained by Audit Corporation in the course of its Audit, and to pay
attention to whether any other material differences other than such material differences are indicative of a material error in Other description Details.
Audit Corporation is required to Report any material error in its Other description Details as determined based on the work performed.
There is no Report by Audit Corporation with respect to Details described in Other.
Management and Audit & Supervisory Board Members and Audit & Supervisory Board' Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally acceptedin Japan. This includes establishing and operating such internal control as management determines is necessary to enable the preparation and fair presentation of
consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing whether it is appropriate to prepare the consolidated financial statements basedon the assumption of a going concern and disclosing matters concerning a going concern in accordance with accounting principles generally accepted in Japan.
The responsibility of the corporate auditors and the board of corporate auditors is to monitor the execution of directors' duties in the development and operation of thefinancial reporting process.

- 167 -

Audit's Responsibility in the Consolidated Financial Statements Audit
Our responsibility is to express an opinion on these consolidated financial statements based on Audit conducted by Audit on an independent basis in Audit report withreasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. A misstatement is deemed to bematerial when it may occur due to fraud or error and individually or when aggregated, if reasonably likely to affect the decisions of users of the consolidated financial
statements.
In accordance with Audit standards generally accepted in Japan, Audit shall, through the process of Audit, make judgments as a professional expert and conduct thefollowing with professional skepticism:
・ Identify and assess material misstatement risks due to fraud or error. In addition, Audit procedures shall be formulated and implemented in response to the risks ofmaterial misstatements. The selection and application of Audit procedures are at the discretion of Audit. In addition, obtain adequate and appropriate Audit evidencebased on which to express an opinion.
・ The objective of Audit is not to express an opinion on the effectiveness of the entity's internal control. However, Audit considers Be related internal control over theentity's Audit to design Audit procedures that are appropriate in the circumstances when conducting a risk assessment.
・ Assess the appropriateness of accounting Policy adopted by management and the methods of its application, as well as the reasonableness of accounting estimates
made by management and the appropriateness of Be related Notes matters.
・ To conclude whether it is appropriate for management to prepare the consolidated financial statements on a going concern basis and, based on Audit evidence
obtained, whether there is significant uncertainty regarding events or circumstances that raise substantial doubt about the Company's ability to continue as a going
concern. If there is a material uncertainty regarding the Company's ability to continue as a going concern, the Company is required to draw attention to Notes mattersin the consolidated financial statements in Audit report statement, or if Notes matters in the consolidated financial statements for significant uncertainty are notappropriate, to express an exclusion opinion on the consolidated financial statements. Although Auditor's conclusion is based on Audit evidence obtained through thedate of Audit report, future events and circumstances may prevent an entity from continuing as a going concern.
・ Evaluate whether the presentation of consolidated financial statements and Notes matters conform to accounting principles generally accepted in Japan, thepresentation, composition and Details of consolidated financial statements, including Be related Notes matters, and whether the consolidated financial statements
fairly present the underlying transactions and accounting events.
・ Obtain adequate and appropriate Audit evidence regarding the financial information of the Corporation and Consolidated subsidiaries to express an opinion on the
consolidated financial statements. Audit is responsible for Direction, Supervise and the performance of the consolidated financial statements. Audit is solely
responsible for Audit's comments.
Audit will Report Audit & Supervisory Board Members and Audit & Supervisory Board on significant Audit findings, including the scope and timing of the planned Audit,
significant deficiencies in internal controls identified in the course of Audit's implementation, and For Other matters as required by Audit standards.
Audit will conduct Report of Audit & Supervisory Board Members and Audit & Supervisory Board with respect to compliance with the provisions of professional ethics inJapan regarding independence and Details for matters that are reasonably likely to affect human independence, and for cases where measures are taken to eliminate
impediments or where safeguards are applied to reduce the impediments to an acceptable level.
Audit shall determine that Audit & Supervisory Board & Supervisory Board Members and Current Consolidated Fiscal Year's Audit of the matters discussed with them areof particular importance in Key Audit Considerations's Consolidated Financial Statements and include them in Audit report. Provided, however, that such matters shall not be
stated if the publication of such matters is prohibited by laws and regulations, or if it is judged by Audit report that Report would reasonably be expected to cause
disadvantage in excess of the public Profit and therefore Audit personnel should not Report such matters, although it is extremely limited.

<Internal Control Audit>
Audit Comments
In order to provide an Audit attestation under the provisions of Article 193-2 II of the Financial Instruments and Exchange Act, Audit Corporation conducted an MIRARTHHOLDINGS, Inc.'s March 31 2024 Report of Internal Control.
In our opinion, the internal control Report referred to above, which indicates that the internal control over financial Report as of March 31 2024 is effective, presents fairly,
in all material respects, the results of the assessment of internal control over financial Report in accordance with the standards for assessment of internal control overfinancial Report generally accepted in Japan.

Basis for Audit Opinion
Audit Corporation conducted an Audit of internal control in accordance with Audit standards for internal control over financial Report generally accepted in Japan. Audit
Corporation's responsibility under Audit standard for internal control over financial Report is set forth under the caption "Responsibility of Audit Persons in Internal Control
Audit." Audit Corporation is independent of the Corporation and its Consolidated subsidiaries in accordance with the Code of Professional Ethics in Japan. As a Audit, theCorporation fulfills its For Other ethical responsibilities. We believe that Audit Corporation has obtained adequate and appropriate Audit evidence that forms the basis for our
opinion.

- 168 -

Responsibility of Management, Audit & Supervisory Board Members and Audit & Supervisory Board to the Internal Control ReportManagement is responsible for establishing and operating internal control over financial Report and for preparing and properly presenting an Internal Control Report inaccordance with standards for evaluating internal control over financial Report generally accepted in Japan.
The responsibility of Audit & Supervisory Board Members and Audit & Supervisory Board is to monitor and verify the design and operation of internal control overfinancial Report.
It should be noted that there is a possibility that misstatements in financial Report may not be completely prevented or detected by internal control over financial Report.

Responsibility of Audit Personnel in Internal Control Audit
Our responsibility is to express an opinion on the internal control Report based on the internal control Audit performed by Audit based on our internal control Audit reportwith reasonable assurance about whether the internal control document is free from material misstatement.
Audit shall, through the course of Audit, make judgments as a professional expert in accordance with Audit standards for internal control over financial Report generally
accepted in Japan and with professional skepticism:・ Implement Audit procedures to obtain Audit evidence-based information about the assessment of internal control over financial Report in the Internal Control
Document. Audit procedures of the Internal Control Audit are selected and applied based on the significance of the effects on the reliability of the financial Report at
the discretion of Audit.
・ Discuss the presentation of the Internal Control Report as a whole, including descriptions made by management about the scope, procedures and results of theassessment of internal control over financial Report.
・ Obtain adequate and appropriate Audit evidence regarding the outcome of the assessment of internal control over financial Report in the Internal Control Report. Audit
is responsible for Direction, Supervise and implementation of the internal control Report. Audit is solely responsible for Audit's comments.
Audit shall Report Audit & Supervisory Board members and Audit & Supervisory Board with respect to the scope and timing of the planned internal control Audit, theresults of the implementation of the internal control Audit, the significant deficiencies to be disclosed in the identified internal controls, the remediation results, and For
Other matters required by Audit criteria for internal control.
Audit will conduct Report of Audit & Supervisory Board Members and Audit & Supervisory Board with respect to compliance with the provisions of professional ethics inJapan regarding independence and Details for matters that are reasonably likely to affect human independence, and for cases where measures are taken to eliminate
impediments or where safeguards are applied to reduce the impediments to an acceptable level.

<Compensation-related information>
Compensation for the Company's and its subsidiaries' Audit attestation services and for non-Audit services to persons in the same network as Audit Corporation andSubmitting Company Corporation is included in (3)[Audit Status] on Corporate Governance Included in "Audit Status."

Interests
The Company and Consolidated Subsidiaries have no interest in the Auditing Corporation or Operating Partners that should be stated pursuant to the provisions of theCertified Public Accountants Act.

Above
(NOTE)1. The original of the above Audit report is stored separately by our company (Securities Report Statement Submitting Company).
2.XBRL is not included in the scope of Audit.

- 169 -

Independent Audit's Audit report

June 26, 2024

MIRARTH HOLDINGS, Inc.

To the Board of Directors

Grant Thornton Taiyo LLC.
Tokyo Office

DesignatedLiability
Managing

LimitedPartners
Partner

Certified Public
Accountant

Tomohiro Ooki

DesignatedLiability
Managing

LimitedPartners
Partner

Certified Public
Accountant

Tetsuya Ishihara

DesignatedLiability
Managing

LimitedPartners
Partner

Certified Public
Accountant

Takafumi Shimokawa<Financial Statements Audit>
Audit Comments
Audit Corporation I its Audit Certification pursuant to the provisions of Article 193-2 Audit of the Financial Instruments and Exchange Law of MIRARTH HOLDINGS,
Inc. for the 52nd Business Year of the period from April 1, 2023, to March 31 2024, as stated in "Accounting," which consists of the balance sheet, income statement,
statement of changes in Shareholders' equity, significant accounts, Policy, For Other Notes, and supplementary schedules.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of MIRARTH HOLDINGS, Inc. as of March 31 2024
and the results of its operations for Business Year then ended in conformity with accounting principles generally accepted in Japan.

Basis for Audit Opinion
Audit Corporation conducted its Audit in accordance with Audit principles generally accepted in Japan. Audit Corporation's liability under Audit standard is described in"Responsibility of Audit Persons in Audit Financial Statements." Audit Corporation is independent from the Corporation and, as a Audit, fulfills its For Other and ethicalresponsibilities in accordance with the Code of Professional Ethics in Japan. We believe that Audit Corporation has obtained adequate and appropriate Audit evidence that
forms the basis for our opinion.

Highlights
As described in Notes on Significant Subsequent Events, on May 20, 2024, the Company resolved to issue new shares through a public offering and Disposal of Treasury
stock in Board of Directors, and the payment and disposition were completed on June 4, 2024. In addition, Board of Directors resolved to issue new shares through a thirdparty allotment in connection with the offering through over-allotment.
This matter does not affect the views of Audit Corporation.

Key Audit Considerations
Key Audit Considerations is a determination by Audit as a professional specialist in Audit of Current fiscal year's financial statements. Key Audit Considerations is acorrespondent matter in the process of Audit for the financial statements as a whole and in the formulation of Audit Comments, and Audit Corporation does not express an
opinion on such matters individually.
Revenue Recognition for Sale Transactions of Real Estate and Generation Facilities
This information is omitted because it is the same Details as Key Audit Considerations (revenue recognition for sales transactions of real estate and power generation
Facilities) in Audit report of the consolidated financial statements.

- 170 -

Other description Details
Other description Details is the information included in Securities Report Statement, other than the consolidated financial statements and financial statements and these
Audit report. Management is responsible for preparing and disclosing Details listed in Other. The responsibility of Audit & Supervisory Board Members and Audit &Supervisory Board is to monitor the execution of Director's duties in the development and operation of Other description Details's Report processes.
Audit corporation's Audit Comments to the financial statements does not include Other description Details, and the corporation does not express an opinion on Other
description Details.
The responsibility of Audit Corporation in Audit to the financial statements is to review, through Other description Details, whether there are material differences between
Other description Details and the financial statements or the knowledge obtained by Audit Corporation in the course of its Audit, and to pay attention to whether any othermaterial differences other than such material differences are indicative of a material error in Other description Details.
Audit Corporation is required to Report any material error in its Other description Details as determined based on the work performed.
There is no Report by Audit Corporation with respect to Details described in Other.

Management and Audit & Supervisory Board Members and Audit & Supervisory Board' Responsibilities for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in Japan.
This includes establishing and operating such internal control as management determines is necessary to enable the preparation and fair presentation of financial statementsthat are free from material misstatement, whether due to fraud or error.
In preparing financial statements, management is responsible for assessing whether it is appropriate to prepare financial statements based on the going concern assumption,and disclosing matters concerning a going concern in accordance with accounting principles generally accepted in Japan when necessary.
The responsibility of the corporate auditors and the board of corporate auditors is to monitor the execution of directors' duties in the development and operation of thefinancial reporting process.
Audit's Responsibility in the Financial Statements Audit
Our responsibility is to express an opinion on these financial statements based on Audit performed by Audit report with independent assurance that the financial statements
as a whole are free from material misstatement, whether due to fraud or error. A misstatement is deemed to be material when it may occur due to fraud or error andindividually or when aggregated, if reasonably likely to affect the decisions of users of the financial statements.
In accordance with Audit standards generally accepted in Japan, Audit shall, through the process of Audit, make judgments as a professional expert and conduct thefollowing with professional skepticism:
・ Identify and assess material misstatement risks due to fraud or error. In addition, Audit procedures shall be formulated and implemented in response to the risks ofmaterial misstatements. The selection and application of Audit procedures are at the discretion of Audit. In addition, obtain adequate and appropriate Audit evidencebased on which to express an opinion.
・ Although the objective of Audit is not to express an opinion on the effectiveness of the entity's internal control, Audit reviews Be related internal control with Audit todesign Audit procedures that are appropriate in the circumstances when conducting a risk assessment.
・ Assess the appropriateness of accounting Policy adopted by management and the methods of its application, as well as the reasonableness of accounting estimates
made by management and the appropriateness of Be related Notes matters.
・ To conclude whether it is appropriate for management to prepare financial statements on a going concern basis and, based on Audit evidence obtained, whether there issignificant uncertainty regarding events or circumstances that raise substantial doubt about the company's ability to continue as a going concern. If there is a material
uncertainty regarding the Company's ability to continue as a going concern, the Company is required to draw attention to Notes matters in the financial statements in
Audit report statement, or if Notes matters in the financial statements regarding significant uncertainty are not appropriate, to express an exclusion opinion on thefinancial statements. Although Auditor's conclusion is based on Audit evidence obtained through the date of Audit report, future events and circumstances may preventan entity from continuing as a going concern.
・ Evaluate whether the financial statement presentation and Notes matters comply with accounting principles generally accepted in Japan, the presentation, composition
and Details of the financial statements, including Be related Notes matters, and whether the financial statements fairly present the underlying transactions andaccounting events.
Audit will Report Audit & Supervisory Board Members and Audit & Supervisory Board on significant Audit findings, including the scope and timing of the planned Audit,
significant deficiencies in internal controls identified in the course of Audit's implementation, and For Other matters as required by Audit standards.
Audit will conduct Report of Audit & Supervisory Board Members and Audit & Supervisory Board with respect to compliance with the provisions of professional ethics inJapan regarding independence and Details for matters that are reasonably likely to affect human independence, and for cases where measures are taken to eliminate
impediments or where safeguards are applied to reduce the impediments to an acceptable level.
Audit shall determine the matters discussed with Audit & Supervisory Board and Audit Director that are considered to be of particular importance in Audit of Current fiscal
year's financial statements as Key Audit Considerations and include them in Audit report. Provided, however, that such matters shall not be stated if the publication of suchmatters is prohibited by laws and regulations, or if it is judged by Audit report that Report would reasonably be expected to cause disadvantage in excess of the public Profit
and therefore Audit personnel should not Report such matters, although it is extremely limited.

- 171 -

<Compensation-related information>
Compensation-related information is included in Audit report of the Consolidated Financial Statements.

Interests
There is no Interests between the Company and Audit Corporation or Managing Partner to be entered in accordance with the provisions of Certified Public Accountant
Law.
Above

(NOTE)1. The original of the above Audit report is stored separately by our company (Securities Report Statement Submitting Company).
2.XBRL is not included in the scope of Audit.

- 172 -