Risk of failing to meet regulatory thresholds for the capital adequacy ratio and other measures

「To ensure the stable operation of its securities lending and borrowing business, the Company is eligible to participate in Bank of Japan operations and clearing and settlement systems, and, like securities companies, is required to maintain a capital adequacy ratio of 200%. In addition, consolidated subsidiary 日証金信託銀行株式会社 is required to maintain a standalone capital adequacy ratio of at least 4%, the domestic standard prescribed in Financial Services Agency Notification No. 19 of 2006.」