14 January 2018

Showa Holdings Co., Ltd.
Mamoru Shigeta,
Representative Managing Director(Code 5103 Tokyo Stock Exchange)
Contact: Tomohiko Shoji, Director(Tel: 04-7131-0181)

Progress Report:
Report: Notice about Our Opinion
Regarding the Timely Disclosure by J Trust Co., Ltd.

As we have reported, J TRUST ASIA PTE. LTD. (hereinafter referred to as “JTA”) that is a
subsidiary of J Trust Co., Ltd. (hereinafter referred to as “J Trust”), which is a company
listed with second section of the Tokyo Stock Exchange, has made an overture to oursubsidiary Group Lease Public Company Limited (hereinafter referred to as “GL”) for
cancellation of the investment agreements on the issue of convertible debentures amounting
to USD 180 million and demand for the immediate repayment. Although the requirements
for JTA’s claims regarding cancellation of the investment agreements and early
reimbursement of the convertible debenture have not met, GL has contacted to JTA withsincere response towards amicable settlement.
However, as of 12 January 2018, J Trust released the announcement titled “Acknowledge
for the Current Situation on Group Lease PCL and Our View on the Future Direction(continuous disclosure)” (hereinafter referred to as “the Timely Disclosure”), and hence wehere announce our opinions as follows.

1. Our recognition of fact regarding the Timely Disclosure by J Trust(1) In the Timely Disclosure, it is described that in Thailand “JTA filed a civil complaint toclaim compensation for the damages against GL, relevant directors of GL and Mr. Mitsuji
Konoshita, and then filed the petition for the reorganization of GL.” However, GL has notreceived a complaint and grasped the details of petition, and therefore, the details areunknown, except that there is no fulfilled requirement to apply the petition for thereorganization of GL in Thailand.
(2) In the Timely Disclosure, it is described that “In Singapore, JTA commenced an action
against Group Lease Holdings Pte. Ltd., the subsidiary of GL incorporated in Singapore, Mr.
Mitsuji Konoshita, as well as Cougar Pacific Pte Ltd (incorporated in Singapore) and Aref
Holdings Limited, Adalene Limited, Bellaven Limited, and Baguera Limited (all of which
are incorporated in Cyprus).” Although we could confirm the said facts, the subsidiary of GL
and other related companies do not have any reason to accept the requirements and ourgroup will absolutely deny them.
(3) In the Timely Disclosure, it is described that in Singapore “JTA also obtained an (assetfreeze) injunction against Group Lease Holdings Pte. Ltd., Mr. Mitsuji Konoshita andCougar Pacific Pte Ltd.” Based on our confirmation on the said fact, “an (asset freeze)injunction” written in the Timely Disclosure is a procedure called “Mareva Injunction” inSingapore and we consider that it is accurate to accept it as “an order of provisional
disposition for safeguarding of assets.” The purpose of the following explanation is to inform1

its details properly.
Under the “(asset freeze) injunction” noted in the Timely Disclosure, expenditure for normal
business operation as well as asset sales, investment, and loan are allowed, which isdifferent from a situation under provisional seizure and the like in Japan. For that reason,the “injunction” does not affect the current business operation of our subsidiary. This can beregarded as a description to induce misunderstandings such as unavailability of all assets,and acquisition or possessory rights for all or part of assets by J Trust although the fact istotally different. Specifically, the said “injunction” bans illegal asset concealment andimposes duties including report to a court after movement of assets and the like.
While some formal lawsuits will be filed in the future, GLH does not have any relationshipof debts and credits with J Trust and it is regarded as a kind of vexatious suits to beappropriately managed.
(4) In the Timely Disclosure, it is described that “In British Virgin Islands, JTA obtained
an injunction over A.P.F. Group Co. Ltd and Mr. Mitsuji Konoshita.” However, our parent
company A.P.F. Group Co., Ltd. and Mr. Mitsuji Konoshita commented that there is no
reason for the request, based on the opinion by their lawyer in British Virgin Island, andthey will absolutely deny it. Our group also believes that this is an unreasonable lawsuit
because the reason for A.P.F. Group Co., Ltd., which is not related to procedure by Thai
Securities and Exchange Commission, to be a defendant is completely unknown.

2. Future countermeasures based on our opinion
As a result of verifying the Timely Disclosure, opinions from our group are as follows.
Regarding the description of the Timely Disclosure, we could not see any information
other than the fact that J Trust and the other related organizations took an action within
the range of what they could do without waiting for our objection. Even based on detailed
verification of the description, what they did are just “to claim” and to obtain “an injunction.”
These actions should not be eventually concluded without assertions proven by J Trustthemselves as receiving arguments from us in formal lawsuits, and these issues are
currently nowhere near a final conclusion. They also do not disrupt our current business
operation.
Because we cannot understand the assertions of J Trust, etc., it is impossible to tell ouropinion for each issue at this time. In any case, it is what should be discussed in formal
lawsuits for the future, and we will have enough opportunities to offer a counterargument
there. We will explain our group’s legitimacy for each issue. By winning these cases one byone, we could offer an official and best opportunity for our group’s stakeholders to eliminate
their doubts and anxieties. We have a strong conviction about our group’s asset quality andstrength in business scheme as well as their legalities and will refute based on thisconviction.
As soon as GL and other related companies receive a complaint or the like and descriptionof lawsuit is known, we will announce them in accordance with rules on timely disclosure.
To all persons concerned including our shareholders and investors, we would like toexpress our sincerest apology for causing a significant inconvenience and anxiety. We will
pay further attention to our behavior and promise to achieve our best for improvement inshareholder value. We would very much appreciate your further understanding for thismatter.

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