SBI Global Asset Management Co., Ltd.

The Asset Management Business, centered on SBI Asset Management, SBI Okasan Asset Management, and Rheos Capital Works, has assets under management that fluctuate due to changes in domestic and overseas stock market conditions, foreign exchange rates, and market interest rates, directly affecting trust fee income. In particular, Publicly Offered Open-End Equity Investment Trusts are strongly affected by stock price and index movements, while privately placed investment trusts are heavily influenced by the investment behavior of large institutional investors such as regional financial institutions. As countermeasures, the company is diversifying its product lineup and diversifying the business portfolio within the group; however, external factors cannot be controlled, and it is difficult to predict the timing and magnitude of their impact.

There is a possibility that offering new funds may become difficult, or that funds may not be managed as originally planned. If investment performance falls below expectations, outflows of investor funds may reduce assets under management, leading to a decline in trust fee income, which would affect the financial position and business results. This applies to both publicly offered and privately placed investment trusts as well as investment advisory operations.

The Group manages funds that invest in domestic and overseas bonds and equities, and fluctuations in foreign exchange rates and market interest rates affect assets under management and earnings. As countermeasures, the Group utilizes hedging transactions, leverages the financial information and expertise of the SBI Holdings Group, diversifies investment regions and products, and promotes the development of products incorporating alternative assets. However, it is difficult to fully eliminate such risks, and significant fluctuations could impact business performance.

The Group is registered domestically as an investment management business and investment advisory business under the Financial Instruments and Exchange Act, and is also registered in the United States under relevant laws and regulations. Changes in laws and regulations in both Japan and the United States may affect business operations, and if a violation of laws or regulations results in the revocation of registration or similar disposition, it could seriously impede business continuity and affect the financial position and business results.

As of the consolidated balance sheet dated March 31, 2026, goodwill totaling ¥1,504,551 thousand is recorded, including ¥876,622 thousand related to the acquisition of Carret Holdings Inc. and Carret Asset Management LLC, and ¥626,533 thousand related to SBI Asset Management. If indications of impairment arise, such as continued negative operating income in the businesses to which the goodwill is attributed, it will be necessary to recognize and measure impairment losses, which could have a material impact on the financial position and operating results. As of the end of the current consolidated fiscal year, operating income of the relevant businesses is positive, and there are no indications of impairment.

Operational investment securities recorded on the consolidated balance sheet at ¥852,722 thousand include shares of venture companies and others without market prices. If the business of an investee does not progress as planned and its intrinsic value declines significantly, impairment treatment will be required. Given the high uncertainty surrounding the future growth potential and expected market share expansion of investees, changes in estimates could have a material impact on the financial position and operating results.

The Group provides evaluation information, advertising placements, and financial information distribution via the internet, and system failures may occur due to overload, equipment malfunction, human error, line failures, computer viruses, malicious interference by hackers, power outages, or natural disasters. In the event of a failure, the resulting service disruption could lead to loss of revenue opportunities and a decline in trust from customers and users, potentially affecting business performance. Various countermeasures against failures have been implemented, but complete prevention is considered difficult.

If personal information collected and used in the course of business is leaked or improperly obtained by external parties, it could reduce customer trust and lead to legal liability, potentially affecting business performance. To date, there have been no instances of information leakage or claims for damages, and the company continues to maintain the Privacy Mark (P Mark), which satisfies the requirements of JIS Q 15001, striving for appropriate information management.

SBI Holdings, Inc. holds 57.7% of the company's voting rights (including indirect ownership), and sales to the SBI Group account for a certain proportion of consolidated total net sales, meaning that fluctuations in the SBI Group's business performance affect the Group's business results. Unexpected business risks may also arise in connection with the SBI Group's financial services business strategy, changes in the management policies of group companies that are business partners, or participation in new business initiatives. The Group states that it will address such risks through its governance structure as a listed company and independent decision-making.

The sale of publicly offered investment trusts is outsourced to financial institutions such as SBI SECURITIES and regional banks, and changes in the policies or sales capabilities of these distributors directly affect assets under management. In addition, regional financial institutions and others are also major investors in privately placed investment trusts, and are characterized by significant fluctuations in balances due to large-lot fund movements. The Group strives to maintain relationships of trust with investors through the provision of appropriate information and careful disclosure of investment management status.