(Update on disclosed matter)Notice Regarding Changes in Subsidiaries (Transfer of Shares) and Booking of Extraordinary Income and Extraordinary Loss (112 KB)

Company Name: FinTech Global Incorporated Representative: Nobumitsu Tamai, President and CEO Stock Listing: Tokyo Stock Exchange Standard Market Stock Code: 8789

Inquiries: Takashi Senda, Executive Vice President,

Senior Executive Officer

Tel: 03-6456-4600

Tokyo, May 12, 2026-FinTech Global Incorporated (hereafter, "FGI" and "the Company")

has determined extraordinary income and extraordinary loss amounts, which were

undetermined as of the press release "Notice Regarding Changes in Subsidiaries (Transfer of Shares) and Booking of Extraordinary Income and Extraordinary Loss," dated March 26, 2026, and provides details below.

1. Extraordinary income (Gain on sale of non-current assets, consolidated and non-consolidated statements)

   In July 2017, when FGI transferred real estate (transfer amount: ¥2,000 million; book value:

   ¥443 million) to Hanno Local Resource Utilization LLC, the transfer was booked as a financial transaction because the transferee was a special purpose company that was a consolidated subsidiary of the Company.

   Now, on March 26, 2026, FGI transferred some of the shares held by the Company in Moomin Monogatari, Ltd., to other investors, a move accompanied by the transfer of all Moomin Monogatari shares held by Metsä Series 2 Investment Limited Liability Partnership, a consolidated subsidiary of FGI, to another company. As a result, Moomin Monogatari and Hanno Local Resource Utilization, which is an affiliate of Moomin Monogatari, no longer fall under FGI's scope of consolidation.

   Consequently, the aforementioned transfer of real estate has been treated as a sale, with FGI booking ¥1,556 million as gain on sale of non-current assets under extraordinary income in consolidated and non-consolidated statements for the second quarter of fiscal 2026, the fiscal year ending September 30, 2026.

2. Extraordinary loss

   FGI has recorded the following items under extraordinary loss for the second quarter of fiscal 2026, the fiscal year ending September 30, 2026.

   1. Loss on sale of shares of subsidiaries and associates (consolidated)

      The transfer of shares described in 1. above led to a loss of ¥263 million on the sale of shares of subsidiaries and associates.

   2. Provision of allowance for doubtful accounts (consolidated)

   With Moomin Monogatari and Hanno Local Resource Utilization no longer accounted for as consolidated subsidiaries, FGI recorded provision of allowance for doubtful accounts of ¥200 million for receivables held by FGI against Moomin Monogatari as well as receivables held by FinTech Asset Management Incorporated, a subsidiary of FGI, against Hanno Local Resource Utilization.

3. Impact on business performance

The impact of the above on the consolidated results for the fiscal year ending September 30, 2026, is factored into the content of "Notice regarding changes to consolidated performance forecast" announced today.

END