Preparing for Future Credit Costs Through Stricter Loan-Loss Provisioning Criteria

「Specifically, for doubtful claims under the Financial Revitalization Act's disclosed claims category, meaning borrowers deemed likely to become bankrupt based on the self-assessment results, the Company makes additional provisions for borrowers whose unsecured exposure, after collateral and provisions, is ¥50 million or more. The additional provisions are based on the progress of their business improvement plans, current cash flow and future outlook, in order to prepare in advance for future credit costs, in addition to provisions based on the previously expected loss rate.」