FinTech Global Incorporated

The Group conducts principal investments in unlisted companies, real estate, and other assets, holding ¥830 million in operational investment securities and ¥569 million in operational loans (with an allowance for doubtful accounts of ¥80 million) as of the end of the current consolidated fiscal year. Because the liquidity of investment targets is extremely low, there is no guarantee that assets can be sold at the desired price or timing, creating a risk of capital losses or loan defaults. As risk management measures, the Group conducts careful deliberation and decision-making by the review department and the Board of Directors, as well as post-investment monitoring; however, there remains a possibility that expected returns will not be achieved or that invested/loaned funds will be impaired.

Metsä Village is held as real estate for sale, with a book value of ¥4,081 million as of September 30, 2025. In FY2024 (ended September 2024), a valuation loss of ¥55 million was recorded, and in FY2025 (ended September 2025), a removal loss of ¥200 million was recorded in connection with the opening of Hyper Museum Hanno. If the net realizable value falls below the book value in the future, additional valuation losses may need to be recorded, which could affect the Group's business results and financial position.

Fixed assets held by Moomin Valley Park amounted to ¥4,420 million as of September 30, 2025, and indicators of impairment have been identified due to a significant deterioration in the operating environment resulting from the delayed recovery from the COVID-19 pandemic. At present, no impairment loss has been recognized because the total undiscounted future cash flows do not fall below the book value; however, if visitor numbers remain below projected levels for an extended period going forward, an impairment loss may need to be recorded.

Hanno Regional Resource Utilization LLC has borrowed ¥5.6 billion from financial institutions and, following a repayment grace period due to reduced revenue caused by the COVID-19 pandemic, resumed repayment from the end of September 2023. This borrowing reached its repayment deadline in March 2024, and after multiple extensions, the repayment deadline as of the filing date of this Annual Securities Report is the end of June 2026. Depending on the terms of future refinancing, this may affect the Group's business results and financial position.

In the Investment Banking Business, personnel with advanced knowledge and experience in investment and real estate are essential; in the Public Consulting Business, personnel with expertise in local government accounting and similar fields are essential; and in Metsä operations, high-quality customer service personnel are essential. A mass departure of existing personnel or deficiencies in the recruitment and training systems could affect business continuity. As countermeasures, the Group is promoting motivation-enhancing measures such as granting restricted stock, enhancing training systems, and improving the working environment.

The Investment Banking Business is subject to a wide range of laws and regulations, including the Financial Instruments and Exchange Act, the Money Lending Business Act, and the Act on Specified Joint Real Estate Ventures, while the Entertainment & Service Business is subject to the Fire Service Act, the Food Sanitation Act, the Act on the Protection of Personal Information, and other regulations. Changes in laws and regulations or shifts in regulatory authorities' interpretation of laws could result in the revocation of licenses or business suspension orders, and compliance-related costs may also increase. As countermeasures, the Group has established the "FGI Group Compliance Code," operates a Compliance Committee, and conducts ongoing training.

The financial statements of overseas group companies, including SGI-Group B.V. and six companies under the Dutch holding company, are translated into yen and are therefore affected by fluctuations in exchange rates. In addition, since investments and loans to overseas companies and funds, as well as the aircraft asset leasing business conducted by aviner Co., Ltd., are denominated in local currencies, a stronger yen may result in reduced recovery amounts or foreign exchange losses. These foreign exchange fluctuation risks may affect the Group's financial position and business results.

In investments in overseas companies and funds, changes in the political and economic conditions of the countries or regions in which investments are made, or changes in capital transaction regulations, may cause significant fluctuations in capital gains. This risk tends to be greater in emerging markets in particular, where market size is small and liquidity is low. Although mitigation measures such as risk analysis and monitoring are implemented, country risk cannot be completely avoided.

Moomin Monogatari Co., Ltd. has entered into an exclusive license agreement with R&B Licensing AB for the operation of Moomin theme parks within Japan, and this agreement forms the foundation of Moomin Valley Park's operations. If the agreement is not renewed or is terminated, it may become difficult to continue operating Moomin Valley Park, which could have a material impact on the Group's business results and financial position. The Group maintains a close relationship with Moomin Characters Oy Ltd and R&B Licensing AB, including receiving partial capital investment and the dispatch of directors from these entities.

The Group's computer systems may experience system failures due to hardware or software defects, human error, computer viruses, external hacking, or other causes. In addition, if important information belonging to business partners or personal information is leaked, this could lead to claims for damages or loss of social credibility, thereby affecting business activities, results, and financial position. As countermeasures, the Group is promoting the strengthening of system security, continuing information security training through e-learning, and enhancing information management regulations.