Interim report
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Name of Company : Stock Listings : Security Code No .: Head Office : FINANCIAL SUMMARY ( For the three months ended June 30 , 2026 ) < under Japanese GAAP > T & D Holdings , Inc. Tokyo 8795 Tokyo , Japan https://www.td-holdings.co.jp/en/ August 7 , 2026 URL : Projected Starting Date of Dividend Distribution : Supplemental Information for Quarterly Financial Statements : Holding of Quarterly Financial Results Meeting : Available Yes ( for institutional investors and analysts ) IR Conference Call 1. Consolidated Operating Results for the Three Months Ended June 30 , 2026 ( April 1 , 2026 - June 30 , 2026 ) ( 1 ) Results of Operations Note : Amounts of less than one million yen are omitted , and percentages have been rounded to the nearest percent . % changes are presented in comparison with the same period of the previous year . Ordinary Revenues % change Ordinary Profit % change Profit Attributable to Owners of Parent % change Three months ended June 30 , 2026 Three months ended June 30 , 2025 ¥ 904,341 million ¥ 891,661 million 1.4 ( 6.4 ) ¥ 42,296 million ¥ 37,329million Note : Comprehensive income was ¥ 96,903 million ( 41.7 % ) for the three months ended June 30 , 2026 , and ¥ 68,390 million ( ( 13.6 ) % ) for the three months ended June 30 , 2025 . ¥ 76,260 million ¥ 58,686 million 29.9 4.4 13.3 9.2 Earnings per Share Three months ended June 30 , 2026 Three months ended June 30 , 2025 ¥ 88.15 ¥ 73.35 Financial Conditions As of June 30 , 2026 Earnings per Share ( Fully Diluted ) ¥ 88.12 ¥ 73.31 Total Assets ¥ 17,448,131 million Net Assets ¥ 1,674,241 million Equity Ratio 9.6 % ¥ 17,318,329 million ¥ 1,617,637 million As of March 31 , 2026 9.3 % Reference : Equity was ¥ 1,669,415 million as of June 30 , 2026 , and ¥ 1,611,928 million as of March 31 , 2026 . 2. Dividends First Quarter- end Year Ended March 31 , 2026 Dividends per share Second Third Quarter- Quarter- end end ¥ 62.00 Year- end Annual ¥ 68.00 ¥ 130.00 Year Ending March 31 , 2027 Year Ending March 31 , 2027 ¥ 82.00 ¥ 82.00 ¥ 164.00 ( Forecast ) Note : Revisions to previously announced dividend forecasts : None -1- T & D Holdings , Inc.
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- 2 - T&D Holdings, Inc. 3. Consolidated Earnings Forecasts for the Year Ending March 31, 2027 (April 1, 2026 - March 31, 2027) Note: % changes are presented in comparison with the same period of the previous year. Ordinary Revenues Ordinary Profit Profit Attributable to Owners of Parent Earnings per Share Year ending March 31, 2027 ¥3,000,000 million (13.8)% ¥235,000 million (8.6)% ¥135,000 million (2.9)% ¥281.33 Note: Revisions to previously announced financial forecasts: None Consolidated Earnings Forecasts for the year ending March 31, 2027 for Group adjusted profit is ¥172,000 million (8.5%), and Group adjusted profit for the three months ended June 30, 2026 was ¥53,200 million (35.0%). * Group adjusted profit is one of the indicators to measure the source of shareholder returns and the actual business conditions of the Group. Specifically, this is calculated by adjusting the profit attributable to owners of the parent for the following items: 1. Accounting valuation gains or losses with no economic substance arising from market fluctuations and other factors.. 2. Additional internal reserves (reversal) in excess of the legal standard requirements 3. One-time gains and losses associated with business restructuring, including gains/losses on sales and goodwill amortization. In addition, profits of certain overseas affiliates based on local accounting standards are added to Group adjusted profit. 4. Notes (1) Significant Changes in the Scope of Consolidation during the Consolidated Cumulative Quarter: None (2) Adoption of Special Accounting Method for the Quarterly Consolidated Financial Reporting: None (3) Changes in Accounting Policies, Accounting Estimates and Restatement of Corrections 1. Changes in accounting policies due to the revision of accounting standards and other regulations: Yes 2. Changes in accounting policies other than the above-mentioned 1: None 3. Changes in accounting estimates: None 4. Restatement of corrections: None (4) Number of Outstanding Shares (Common Stock) 1. Number of outstanding shares including treasury shares at the end of the period: As of June 30, 2026: 488,000,000 As of March 31, 2026: 488,000,000 2. Number of treasury shares at the end of the period: As of June 30, 2026: 9,358,119 As of March 31, 2026: 8,134,171 3. Average number of outstanding shares during the period: For the three months ended June 30, 2026: 479,810,179 For the three months ended June 30, 2025: 508,932,333 Note: The company’s shares remaining in BIP (Board Incentive Plan) Trust (1,096,100 shares as of June 30, 202 6, and 1,151,800 shares as of March 31, 202 6) and ESOP (Employee Stock Ownership Plan) Trust (1,550,461 shares as of June 30, 2026, and 1,556,843 shares as of March 31, 2026) were included in the number of treasury shares at the end of the period. In calculating average number of outstanding shares during the period, average number of outstanding shares during the period of the company’s shares remaining in BIP (Board Incentive Plan) Trust (1,115,893 shares as of June 30, 2026, and 1,277,894 shares as of June 30, 2025) and ESOP Trust (1,555,704 shares as of June 30, 2026, and 1,562,939 shares as of June 30, 2025) were deducted. * Review of the Japanese -language original of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary). * Explanation for the proper use of earnings forecasts and other special remarks Forward-looking statements made in this document, including earnings forecasts, are based on current obtained information and certain assumptions which are deemed rational by the Company. The Company offers no assurance that these statements will be realized. Actual results may differ substantially due to various factors.
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T&D Holdings, Inc. - 1 - Contents of Appendix 1. Overview of Results of Operation and others ································ ························ 2 (1) Overview of Consolidated Financial Results for the three months ended June 30, 2026 ········ 2 (2) Overview of Consolidated Financial Conditions for the three months ended June 30, 2026 ···· 3 2. Quarterly Consolidated Financial Statements and Main Notes ································ ··· 4 (1) Quarterly Consolidated Balance Sheet ································ ································ · 4 (2) Quarterly Consolidated Statement of Operations and Quarterly Consolidated Statement of Comprehensive Income ································ ······ 5 Quarterly Consolidated Statement of Operations ································ ····················· 5 For three months ended June 30, 2026 ································ ······························ 5 Quarterly Consolidated Statement of Comprehensive Income ································ ····· 6 For three months ended June 30, 2026 ································ ······························ 6 (3) Notes on Quarterly Consolidated Financial Statements ································ ·············· 6 [Notes on Applicable Financial Reporting Framework] ································ ············· 6 [Notes on Going-Concern Assumption] ································ ······························· 6 [Notes on Material Changes in Shareholders’ Equity] ································ ··············· 7 [Changes in Accounting Policies] ································ ································ ······ 7 [Notes on Segment Information, etc.] ································ ································ ·· 7 [Notes on Quarterly Consolidated Statement of Cash Flows] ································ ······· 8 Independent Auditor’s Interim Review Report on Quarterly Consolidated Financial Statements ································ ························· 9 *Supplementary materials for financial statements are available on T&D Holdings’ website. URL: https://www.td-holdings.co.jp/en/ir/document/results.html
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T&D Holdings, Inc. - 2 - 1. Overview of Results of Operation and Others (1) Overview of Consolidated Financial Results for the three months ended June 30, 2026 For the three months ended June 30, 2026, ordinary revenues increased ¥12.6 billion or 1.4 percent from the consolidated accounting period for the three months ended June 30, 2025 to ¥904.3 billion, which were a total of income from insurance premiums of ¥ 646.5 billion (down 9.9 percent), investment income of ¥230.4 billion (up 52.7 percent), other ordinary income of ¥25.1 billion (up 10.8 percent) and equity in earnings of affiliates of ¥2.1 billion (compared with equity in losses of affiliates of ¥0.4 billion in the previous fiscal year). Ordinary expenses decreased ¥4.8 billion or 0.6 percent from the consolidated accounting period for the three months ended June 30, 2025 to ¥828.0 billion, which were a total of insurance claims and other payments of ¥611.7 billion (down 2.1 percent), provision for policy reserves of ¥33.1 billion (down 44.4 percent), investment expenses o f ¥ 89.7 billion ( up 50.7 percent), operating expenses of ¥ 72.0 billion (up 6.8 percent) and other ordinary expenses of ¥21.3 billion (up 0.5 percent). As a result, ordinary profit , which is subtracting ordinary expenses from ordinary revenues, increased ¥17.5 billion from the consolidated accounting period for the three months ended June 30, 2025 to ¥76.2 billion (up 29.9 percent). Extraordinary gains were ¥0.0 billion (down 100.0 percent), while extraordinary losses were ¥5.0 billion (down 5.1 percent). Af ter accounting for extraordinary gains and losses, provision for reserve for policyholder dividends, and income taxes and so forth to ordinary profit, profit attributable to owners of parent increased ¥4.9 billion from consolidated accounting period for the three months ended June 30, 2025 to ¥42.2 billion (up 13.3 percent). Group adjusted profit increased 35.0 percent from the consolidated accounting period for the three months ended June 30, 2025 to ¥53.2 billion. Comprehensive income was ¥96.9 billion (up 41.7 percent), which was a total of profit of ¥42.3 billion (up 13.3 percent) and other comprehensive income of ¥54.5 billion (up 75.9 percent). (i) Ordinary Revenues (Billions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Increase (Decrease) Consolidated 891.6 904.3 12.6 Taiyo Life 370.9 299.2 (71.7) Daido Life 282.1 334.3 52.2 T&D Financial Life 232.1 275.4 43.2 T&D United Capital (consolidated) 0.1 2.7 2.5 Note: The differences between the consolidated figur es and the sum of four companies are due to ordinary revenues of consolidated subsidiaries other than the four companies and adjustments between the consolidated companies, etc.
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T&D Holdings, Inc. - 3 - (ii) Ordinary Profit(loss) (Billions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Increase (Decrease) Consolidated 58.6 76.2 17.5 Taiyo Life 21.5 25.2 3.6 Daido Life 37.6 47.3 9.6 T&D Financial Life 1.8 3.9 2.1 T&D United Capital (consolidated) (0.5) 1.0 1.5 Note: The differences between the c onsolidated figures and the sum of four companies are due to ordinary profit(loss) of consolidated subsidiaries other than the four companies and adjustments between the consolidated companies, etc. (iii) Profit(loss) attributable to owners of parent (Billions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Increase (Decrease) Consolidated 37.3 42.2 4.9 Taiyo Life 12.5 14.7 2.1 Daido Life 23.7 30.9 7.2 T&D Financial Life 1.0 3.0 1.9 T&D United Capital (consolidated) (0.3) 1.0 1.4 Notes: 1. The differences between the consolidated figures and the sum of four companies are due to profit(loss) of consolidated subsidiaries other than the four companies and adjustments between the consolidated companies, etc. 2. Figures of the three life insurance companies are profit. (2) Overview of Consolidated Financial Conditions for the three months ended June 30, 2026 As of June 30, 2026, total assets were ¥17,448.1 billion (up 0.7 percent from the previous fisc al year-end). The main components of the total assets were securities, mainly public and corporate bonds, of ¥ 13,052.2 billion (up 1.4 percent), loans of ¥ 1,474.8 billion (down 2.2 percent), monetary trusts of ¥ 1,229.3 billion (up 0.7 percent), cash and deposits of ¥ 426.7 billion ( up 0.9 percent), and tangible fixed assets of ¥ 368.1 billion (down 0.6 percent). Total liabilities were ¥ 15,773.8 billion (up 0.5 percent). Policy reserves accounting for a substantial portion of total liabilities were ¥14,006.9 billion (up 0.2 percent). Total net assets were ¥ 1,674.2 billion (up 3.5 percent) of which valuation difference on available -for-sale securities were ¥793.0 billion (up 7.8 percent).
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T&D Holdings, Inc. - 4 - 2. Quarterly Consolidated Financial Statements and Main Notes (1) Quarterly Consolidated Balance Sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets: Cash and deposits 422,810 426,778 Call loans 279,703 235,818 Monetary claims purchased 120,609 153,099 Monetary trusts 1,220,462 1,229,385 Securities 12,869,591 13,052,244 Loans 1,508,095 1,474,835 Tangible fixed assets 370,247 368,117 Intangible fixed assets 66,245 68,227 Due from agencies 248 227 Reinsurance receivable 229,946 211,938 Other assets 215,817 210,967 Net defined benefit asset 17,357 18,528 Deferred tax assets 359 964 Reserve for possible loan losses (3,166) (3,000) Total assets 17,318,329 17,448,131 Liabilities: Policy reserves 13,979,640 14,006,991 Reserve for outstanding claims 86,953 82,148 Policy reserve 13,825,376 13,858,516 Reserve for policyholder dividends 67,311 66,326 Due to agencies 1,293 1,609 Reinsurance payable 36,017 29,605 Short-term debentures 7,980 7,981 Bonds 224,000 224,000 Other liabilities 1,028,181 1,039,405 Provision for bonuses to directors and audit & supervisory committee members 379 124 Provision for share-based remuneration 3,128 3,007 Net defined benefit liability 22,976 23,338 Provision for directors’ and audit & supervisory committee members' retirement benefits 19 8 Reserves under the special laws 299,844 304,843 Reserve for price fluctuations 299,844 304,843 Deferred tax liabilities 92,823 128,569 Deferred tax liabilities on land revaluation 4,406 4,406 Total liabilities 15,700,692 15,773,889 Net assets: Capital stock 207,111 207,111 Retained earnings 522,349 531,761 Treasury shares (23,740) (29,795) Total shareholders' equity 705,720 709,077 Valuation difference on available-for-sale securities 735,816 793,035 Deferred gains (losses) on hedging instruments (1,891) (1,853) Revaluation reserve for land (6,232) (6,232) Foreign currency translation adjustment 51,354 46,032 Debt value adjustments of foreign subsidiaries and affiliates (5,135) (2,308) Policy value adjustments of foreign subsidiaries and affiliates (3,440) (1,758) Valuation difference on policy reserves of foreign subsidiaries and affiliates 135,736 133,423 Total accumulated other comprehensive income 906,208 960,338 Subscription rights to shares 196 158 Non-controlling interests 5,511 4,667 Total net assets 1,617,637 1,674,241 Total liabilities and net assets 17,318,329 17,448,131
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T&D Holdings, Inc. - 5 - (2) Quarterly Consolidated Statement of Operations and Quarterly Consolidated Statement of Comprehensive Income Quarterly Consolidated Statement of Operations (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Ordinary revenues 891,661 904,341 Income from insurance premiums 718,009 646,579 Investment income 150,958 230,496 Interest, dividends and income from real estate for rent 96,905 100,321 Gains from monetary trusts, net 2,479 14,709 Gains on investments in trading securities, net - 3 Gains on sales of securities 39,937 71,067 Foreign exchange gains, net - 12,377 Reversal of reserve for possible loan losses - 165 Other investment income 596 1,382 Gains on separate accounts, net 11,040 30,468 Other ordinary revenues 22,693 25,144 Equity in earnings of affiliates - 2,121 Ordinary expenses 832,974 828,081 Insurance claims and other payments 624,631 611,780 Insurance claims 92,486 81,290 Annuity payments 90,145 88,961 Insurance benefits 45,871 44,117 Surrender payments 196,618 246,635 Other payments 34,564 16,565 Reinsurance premiums 164,945 134,210 Provision for policy reserves 59,591 33,159 Provision for policy reserve 59,587 33,140 Interest portion of reserve for policyholder dividends 3 19 Investment expenses 59,562 89,734 Interest expenses 1,333 2,484 Losses on investments in trading securities, net 53 - Losses on sales of securities 33,782 58,123 Devaluation losses on securities 233 168 Losses from derivatives, net 14,631 18,637 Foreign exchange losses, net 1,128 - Provision for reserve for possible loan losses 252 - Depreciation of real estate for rent 1,670 1,614 Other investment expenses 6,476 8,705 Operating expenses 67,509 72,076 Other ordinary expenses 21,232 21,328 Equity in losses of affiliates 447 - Ordinary profit 58,686 76,260
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T&D Holdings, Inc. - 6 - (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Extraordinary gains 2,641 0 Gains on disposal of fixed assets 919 0 Gains on negative goodwill 1,721 - State subsidy 0 - Extraordinary losses 5,307 5,035 Losses on disposal of fixed assets 92 36 Impairment losses 176 - Provision for reserve for price fluctuations 4,772 4,999 Head office transfer cost 266 - Subsidized project expenses 0 - Provision for reserve for policyholder dividends 5,632 6,205 Income before income taxes 50,387 65,019 Income taxes (current) 13,633 16,466 Income taxes (deferred) (604) 6,226 Total income taxes 13,028 22,693 Profit 37,359 42,326 Profit attributable to non-controlling interests 29 30 Profit attributable to owners of parent 37,329 42,296 Quarterly Consolidated Statement of Comprehensive Income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 37,359 42,326 Other comprehensive income: Valuation difference on available-for-sale securities 16,153 63,037 Deferred gains (losses) on hedging instruments 3,965 37 Foreign currency translation adjustments (9) 41 Share of other comprehensive income of associates accounted for using the equity method 10,921 (8,539) Total other comprehensive income 31,031 54,577 Comprehensive income 68,390 96,903 (Breakdown) Comprehensive income attributable to owners of parent 68,319 96,905 Comprehensive income attributable to non-controlling interests 70 (1) (3) Notes on Quarterly Consolidated Financial Statements [Notes on Applicable Financial Reporting Framework] Quarterly Consolidated Financial Statements have been prepared in accordance with Article 4, Paragraph 1 of the Tokyo Stock Exchange, Inc.’s Standards for the Preparation of Quarterly Financial Statements (the Standards) and accounting principles for interim consolidated financial statements generally accepted in Japan, applying the provisions for reduced disclosures as set forth in Article 4, Paragraph 2 of the Standards. [Notes on Going-Concern Assumption] Not applicable.
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T&D Holdings, Inc. - 7 - [Notes on Material Changes in Shareholders' Equity] Not applicable. [Changes in Accounting Policies] The “Practical Guidelines on Accounting for Financial Instruments” ( Transferred Guidance No. 9, issued on March 11, 2025; hereinafter the “Revised Guidelines on Financial Instruments”) has been applied from the beginning of the first quarter of the current fiscal year. As a result, in accordance with Paragraph 132-2 of the Revised Guidelines on Financial Instruments, certain un quoted shares included in the underlying assets of certain partnerships and similar entities that meet the requirements specified ther ein are measured at fair value, and such fair value is used as the basis for accounting for investments in those partnerships and similar entities. The application of the Revised Guidelines on Financial Instruments is subject to the transitional treatment prescribed in Paragraph 205-2 thereof, and its impact on the quarterly consolidated financial statements is immaterial. [Notes on Segment Information, etc.] Information on ordinary revenues, income or loss by reportable segment (Millions of yen) Reportable segments Others Total Adjustments Amount on consolidated financial statements Three months ended June 30, 2025 Taiyo Life Daido Life T&D Financial Life T&D United Capital (consolid ated) Subtotal Ordinary revenues ¥369,232 ¥281,827 ¥232,163 ¥161 ¥883,385 ¥11,028 ¥894,414 ¥ (2,752) ¥891,661 Intergroup transfers 1,710 303 - - 2,014 164,035 166,049 (166,049) - Total 370,943 282,131 232,163 161 885,399 175,064 1,060,464 (168,802) 891,661 Segment income (loss) 21,540 37,631 1,811 (517) 60,466 159,288 219,755 (161,068) 58,686 Notes: 1. Ordinary revenues instead of net sales are presented here. 2. Adjustments are as follows: (1) The adjustment to ordinary revenue of ¥(2,752 million) mainly represents the transferred amount arising from the inclusion of foreign exchange gains, net of ¥1,911 million and reversal of provision for employees’ retirement benefits of ¥544 million, which were included in ordinary revenue, in foreign exchange losses and provision for retirement benefits, respectively, within ordinary expenses in the consolidated statement of profit or loss. (2) The adjustment to segment income (loss) of ¥(161,068 million)is mainly due to the elimination of dividends from subsidiaries and affiliates. 3. Segment income (loss) is adjusted to align with the ordinary profit set forth in the consolidated statement of operations. .
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T&D Holdings, Inc. - 8 - Information on ordinary revenues, income or loss by reportable segment (Millions of yen) Reportable segments Others Total Adjustments Amount on consolidated financial statements Three months ended June 30, 2026 Taiyo Life Daido Life T&D Financial Life T&D United Capital (consolid ated) Subtotal Ordinary revenues ¥298,590 ¥334,047 ¥275,420 ¥2,709 ¥910,766 ¥11,109 ¥921,876 ¥ (17,534) ¥904,341 Intergroup transfers 646 351 - - 998 87,436 88,434 (88,434) - Total 299,237 334,398 275,420 2,709 911,765 98,546 1,010,311 (105,969) 904,341 Segment income 25,209 47,329 3,919 1,004 77,463 80,725 158,189 (81,928) 76,260 Notes: 1. Ordinary revenues instead of net sales are presented here. 2. Adjustments are as follows: (1) The adjustment to ordinary revenue of ¥ (17,534) million primarily represents the transferred amount of the reversal of policy reserves of ¥16,939 million included in ordinary revenues, which is presented in the consolidated statement of income as part of provision for policy reserves under ordinary expenses. (2) The adjustment to segment income of ¥(81,928 million) is mainly due to the elimination of dividends from subsidiaries and affiliates. 3. Segment income is adjusted to align with the ordinary profit set forth in the consolidated statement of operations. [Notes on Quarterly Consolidated Statement of Cash Flows] Consolidated Statement of Cash Flows for the three months ended June 30, 2026 was not prepared. Depreciation (including Depreciation of real estate for rent) for the three months ended June 30, 2026 is as follows. Millions of yen Three months ended June 30, 2025 2026 Depreciation ¥ 5,574 ¥ 5,871
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T&D Holdings, Inc. - 9 - [English Translation] Independent Auditor’s Interim Review Report August 7, 2026 The Board of Directors T&D Holdings, Inc. Ernst & Young ShinNihon LLC Tokyo, Japan Designated Engagement Partner Certified Public Accountant Hiroshi Yamano Designated Engagement Partner Certified Public Accountant Hiroyuki Kobayashi Designated Engagement Partner Certified Public Accountant Atsushi Ochi Auditor’s Conclusion We have reviewed the accompanying quarterly consolidated financial statements of T&D Holdings, Inc. (the Group), which comprise the quarterly consolidated balance sheet as at June 30, 2026, and the quarterly consolidated statements of income, comprehensive income for the three-month period ended June 30, 2026, and notes to the quarterly consolidated financial statements. Based on our review, nothing has come to our attention that causes us to believe that the accompanying quarterly consolidated financial statements are not prepared, in all material respects, in accordance with Article 4, Paragraph 1 of the Tokyo Stock Exchange, Inc.’s Standards for the Preparation of Quarterly Financial Statements (the Standards) and accounting principles for interim consolidated financial statements generally accepted in Japan, applying the provisions for reduced disclosures as set forth in Article 4, Paragraph 2 of the Standards. Basis for Auditor’s Conclusion We conducted our review in accordance with review standards for interim financial statements generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Review of the Quarterly Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our review of the quarterly consolidated financial statements in Japan, including those applicable to audits of financial statements of public interest entities and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the evidence we have obtained provides a basis for our conclusion. Responsibilities of Management, the Audit & Supervisory Committee for the Quarterly Consolidated Financial Statements Management is responsible for the preparation of these quarterly consolidated financial statements in accordance with Article 4, Paragraph 1 of the Standards and accounting principles for interim consolidated financial statements generally accepted in Japan, applying the provisions for reduced disclosures as set forth in Article 4, Paragraph 2 of the Standards, and for the internal controls as management determines are necessary to enable the preparation of quarterly consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the quarterly consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, including the disclosures related to matters of going concern as required by Article 4, Paragraph 1 of the Standards and accounting principles for interim consolidated financial statements generally accepted in Japan, applying the provisions for reduced disclosures as set forth in
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T&D Holdings, Inc. - 10 - Article 4, Paragraph 2 of the Standards. The Audit & Supervisory Committee is responsible for overseeing the execution of director’s duty to the design and operation of the Group’s financial reporting process. Auditor’s Responsibilities for the Review of the Quarterly Consolidated Financial Statements Our responsibility is to express a conclusion on these quarterly consolidated financial statements based on our review from an independent standpoint. As part of a review in accordance with review standards for quarterly financial statements generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the review. We also: ・Make inquiries, primarily of management and persons responsible for financial and accounting matters and apply analytical and other interim review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in Japan. ・Conclude based on the evidence obtained whether anything has come to our attention that causes us to believe that the quarterly consolidated financial statements are not prepared in accordance with Article 4, Paragraph 1 of the Standards and accounting principles for interim consolidated financial statements generally accepted in Japan, applying the provisions for reduced disclosures as set forth in Article 4, Paragraph 2 of the Standards, should we determine that a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. Additionally, if we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s interim review report to the related disclosures in the quarterly consolidated financial statements or, if such disclosures are inadequate, to modify our conclusion. Our conclusions are based on the evidence obtained up to the date of our auditor’s interim review report. However, future events or conditions may cause the Group to cease to continue as a going concern. ・Evaluate whether anything has come to our attention that causes us to believe that the overall presentation and disclosure of the quarterly consolidated financial statements are not prepared in accordance with Article 4, Paragraph 1 of the Standards and accounting principles for interim consolidated financial statements generally accepted in Japan, applying the provisions for reduced disclosures as set forth in Article 4, Paragraph 2 of the Standards. ・Obtain evidence regarding the financial information of the entities or business activities within the Group as a basis for expressing a conclusion on the quarterly consolidated financial statements. We are responsible for the direction, supervision and review of the documentation of the interim review. We remain solely responsible for our conclusion. We communicate with the Audit & Supervisory Committee regarding the planned scope and timing of the review and significant review findings. We also provide the Audit & Supervisory Committee with a statement that we have complied with the ethical requirements regarding independence that are relevant to our review of the quarterly consolidated financial statements in Japan, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied to reduce threats to an acceptable level. Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan. Notes: * The original of above Interim Review Report is stored in the custody of the Group (The company, discloses the Quarterly Earnings Reports). * XBRL data and HTML data are excluded from the scope of the interim review. * The original Independent Auditor’s Interim Review Report related to the quarterly consolidated financial statements is in Japanese. This English translation is prepared only for readers’ convenience.