Tokyo Metro Co., Ltd.

Mid- to long-term population decline in the greater Tokyo metropolitan area, reduced commuting demand due to the entrenchment of telework, and demographic structural changes from advancing aging may lead to a decrease in railway passenger numbers. Relocation of large corporate headquarters functions or government agencies away from Tokyo's wards could also affect business performance. As countermeasures, the Company is promoting the sale of special discount tickets, strengthening the urban and lifestyle creation business, and expanding its business domain including through investments and M&A.

Given the business characteristics of consuming substantial electricity for train operations and continuously making capital investments and maintenance/repairs, business performance may be affected if electricity charges, raw material prices, and labor costs surge due to changes in domestic and overseas conditions or tightening labor supply-demand. The risk is particularly significant if such surges continue over a long period. The Company is working to reduce costs through the introduction of energy-efficient rolling stock and diversification of procurement channels.

If disruptions to railway line operations occur due to natural disasters such as earthquakes, floods, and typhoons, large-scale power outages, terrorist attacks, supply chain disruptions, or other causes, this may have a material impact on business performance and social credibility. The Company is promoting seismic reinforcement of facilities and flood countermeasures in anticipation of a major earthquake directly beneath Tokyo or large-scale flooding, while also thoroughly managing inventory and conducting comprehensive emergency response drills.

There are risks of rising electricity charges due to policy and regulatory reviews and changes in the energy mix, damage to railway facilities from the intensification of heavy rainfall, and a decline in social credibility if climate change disclosure is deemed insufficient. The Company supports the TCFD recommendations and, under its long-term environmental target "Metro CO2 Zero Challenge 2050," has set goals of a 53% reduction by FY2030 (compared to FY2013) and net zero by FY2050, working on initiatives such as virtual PPAs and the introduction of energy-efficient rolling stock.

Fare revisions under the Railway Business Act require the approval or notification of the Minister of Land, Infrastructure, Transport and Tourism, and business performance may be affected if agile fare revisions are difficult to implement. The requirements under the Tokyo Metro Co., Ltd. Act for ministerial approval regarding the selection of representative directors, amendments to the articles of incorporation, and dividends also constrain management flexibility. The abolition of road occupancy fee reduction/exemption measures and changes to the collection rate for designated national roads (collection to begin from FY2025 at 10% of the amount prescribed by the Road Act Enforcement Order) also pose business performance risks.

As of March 31, 2026, the balance of corporate bonds and borrowings amounted to ¥1,071,499 million (equivalent to ¥10,714,990 million), including a long-term loan balance for the promotion of new line construction of ¥192,100 million (equivalent to ¥192,100 million) procured from the Japan Railway Construction, Transport and Technology Agency for the Yurakucho Line and Namboku Line extension projects. If interest rates rise substantially due to changes in the financial environment or if credit ratings are downgraded, business performance may be affected through increased fundraising costs. The Company aims to maintain financial soundness by adhering to financial discipline and controlling debt balances relative to earning power.

Construction of the Yurakucho Line extension (between Toyosu and Sumiyoshi) and the Namboku Line extension (between Shinagawa and Shirokanetakanawa) began in November 2024, but business performance may be affected by changes in the business environment including transport demand, unexpected prolongation of the construction schedule or additional costs, and the status of public support implementation. The development of both lines is premised on sufficient public support and the certain implementation of the sale of the Company's shares, and changes to these premises constitute a risk factor.

Core systems such as train operation and power supply are heavily dependent on computer systems and communication networks, and if system failures occur due to malware infection, obstruction by third parties, human error, or other causes, this may disrupt normal train operations and lead to a decline in social credibility. The Company has established a cybersecurity promotion structure and conducts regular system audits by specialized institutions, continuously working to strengthen countermeasures.

Due to the progression of the declining birthrate and aging population and increasing fluidity in the labor market, it may become difficult to recruit and retain the necessary human resources, and if a shortage of personnel disrupts the assurance of safe and stable transport, this may lead to customers and business partners turning away, affecting business performance and financial condition. The Company is working to secure stable human resources and build an efficient business operation structure through the promotion of human capital management, revision of personnel systems and welfare benefits, introduction of flexible work arrangements, and business transformation through the use of DX.

As of the filing date of the Annual Securities Report, the Minister of Finance held 26.73% of issued shares (26.74% of voting rights) and the Tokyo Metropolitan Government held 23.31% (23.32% of voting rights), and both parties may exert significant influence over the Company's management. There is a possibility that the interests of the Government and the Tokyo Metropolitan Government may conflict with the interests of other shareholders, and if further share sales are implemented in the future, this may affect the share price in the short term through the impact on supply-demand balance. The treatment of road occupancy fees for designated national roads after full privatization also remains undetermined, and the outcome of discussions at the stage of concretization may affect business performance.