Re: Termination of the business alliance between our consolidated subsidiaries

Press Release

5-1, NIHONBASHI 2-CHOME,CHUO-KU, TOKYO 103-6130 JAPAN

Note: This English translation is for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

We assume no responsibility for this translation or for direct, indirect or any other form of damage arising from the translation.

(TSE, NSE: 8616) March 18, 2022

Re: Termination of the business alliance between our consolidated subsidiaries

We (hereafter "the Company" where appropriate), announce that two of our consolidated subsidiaries, ACE Securities Co., Ltd. ("ACE Securities" hereafter) and Maruhachi Securities Co., Ltd. ("Maruhachi Securities" hereafter) decided respectively at their board of directors' meetings held today to terminate the comprehensive business alliance agreement that was concluded on November 1, 2008. The alliance was designed to strengthen their securities businesses. We set out below the details of the termination.

1. The reason for termination

ACE Securities and Maruhachi Securities established a business alliance to maximize profit and improve customer satisfaction respectively with enhanced operating efficiency. Toward that end, both companies effectively shared the business resources each company possesses such as talent, information, and other resources, and they took advantage of mutual accessibility to a large combined market as a benefit of the alliance.

They decided on the alliance termination at their board of directors' meetings on the following grounds.

• Effective May 1, 2022, Tokai Tokyo Securities Co., Ltd. and ACE Securities will be merged as surviving entity and expiring entities respectively.
• ACE Securities made a decision today at its board of directors' meeting to the effect that ACE RESEARCH INSTITUTE Co., Ltd. (voting rights share: 80% by ACE Securities, 20% by Maruhachi Securities), which provides research information to both ACE Securities and Maruhachi Securities, shall be dissolved on the effective date of April 30, 2022. Further, Maruhachi Securities, at its board of directors' meeting, decided today to terminate an outsourcing agreement with ACE RESEARCH INSTITUTE Co., Ltd. on the effective date of April 30, 2022.
• The function such as information supply may be provided by another subsidiary of the Company.

2. Description of the business alliance to be terminated.

The agreement was reached between ACE Securities and Maruhachi Securities to terminate the comprehensive business alliance agreement concerning securities business operations that was concluded on the effective date of November 1, 2008.

1. Schedule for the termination
2. • The date on which the decision on termination is made by the respective board of directors' meetings: March 18, 2022.
   • The effective termination date: March 18, 2022
3. The profile of the company that terminates business alliance

＜ACE Securities＞

		(I)	Company Name	ACE Securities Co., Ltd.
		(II)	Address			2 Chome 6-11 Honmachi, Chuo Ku, Osaka City
		(III)	Name and Position of the	Yoshinori Deguchi, President and Representative
			Representative	Director
		(IV)	Business			Financial Instruments Business Operator
		(V)	Capital Stock	¥8,831,125,000 (as of December 31, 2021)
		(VI)	Date of	Incorporation	February 21, 1931
		(VII) Large	as of December 31, 2021	Tokai Tokyo Financial Holdings, Inc., 100% shareholder
		shareholder(s)
		(VIII)	The relation between the	Company and the ACE Securities ("the subject" hereafter
		where appropriate)
			Capital Relation	The Company owns 100% voting rights of the subject.
						Mr. Satoshi Matsui, a director of the subject,
						concurrently served as a Company's Managing Executive
						Officer, and Mr. Masaaki Murakami now concurrently
			Personnel Relation	serves as an Advisor to the Company, Also, Mr. Ichiro
			Goda now concurrently serves as a Director of the
						Company. In	addition, Mr. Yoshifumi Ito now
						concurrently serves as a Managing Executive Officer of
						the Company.
			Business Relation	The Company supplies its products to the subject.
			Status as Related Party	The subject is		a wholly-owned	subsidiary of the
			Company.
		(IX)	Business	Performance and	Financial Status of ACE Securities during the Recent
		Three-year Period (in million yen unless otherwise noted)
		Fiscal Year Ended in:			March 2019		March 2020	March 2021
		Consolidated Net Assets			26,874		26,870	28,673
		Consolidated Total Assets			37,560		40,128	42,098
		Per-share Consolidated Net Assets	4,553.70 Yen		4,589.30 Yen	4,920.26 Yen
		Consolidated Operating Revenue	10,050		10,043	11,260
		Consolidated Ordinary Income	860		1,248	2,297
		Consolidated Net Income Attributable to the	500		830	1,464
		Parent Company
		Per-share Consolidated Net Income	100.34 Yen		166.63 Yen	293.77 Yen
		Dividend Per-share			50.00 Yen		60.00 Yen	0 Yen
	＜Maruhachi Securities＞
(I)	Company Name			Maruhachi Securities Co., Ltd.
(II)	Address			2 Chome 4 Shinsakaemachi, Naka Ku, Nagoya City, Aichi Prefecture
(III)	Name and Position of the		Takuya Suzuki, President and Representative Director
	Representative

(IV)	Business	Financial Instruments Business Operator
(V)	Capital Stock	¥3,751,856,000 (as of December 31, 2021)
(VI)	Date of Incorporation	March 30, 1944
(VII)			ACE Securities Co., Ltd.		43.63%*
				Yoshitaka Nakamura		15.11%
				Nomura Properties, Inc.		5.45%
				Fumiko Nakamura		2.19%
				KousukeHosokawa
		Major Shareholders and Respective	1.21%
		Fund Creation Co., Ltd.		1.03%
		Shareholding Ratios (as of September	HideakiYamaguchi
		30, 2021)		0.98%
				Maruhachi Securities Employee Shareholders'	0.81%
				Association
				Yasunori Satono		0.58%
(VIII)		Relation between the Company and Maruhachi Securities.
		Capital Relation	The Company owns 43.63% of Maruhachi Securities's stocks.
				Both Mr. Hiromi Tajima and Mr. Takuya Suzuki, Directors of Maruhachi Securities,
		Personnel Relation	were the Company's Managing Executive Directors and Mr. Masato Kozawa was the
				Company's Managing Executive Officer.
		Business Relation	The Company Group supplies its products to Maruhachi Securities.
		Status as Related Party	Maruhachi Securities is a consolidated subsidiary of the Company.
(IX)	Business Performance and Financial	Status of Maruhachi Securities in the Recent Three-year Period (in million yen unless
otherwise noted)
Fiscal Year Ended in:	March 2019		March 2020	March 2021
Net Assets	7,064		6,752	7,346
Total Assets	8,722		8,698	9,957
Per-share Net Assets	1,769.94 Yen		1,691.73 Yen	1,840.71Yen
Operating Revenue	2,898		2,421	3,040
Ordinary Income	548		228	607
Net Income	406		163	413
Per-share Net Income	101.72 Yen		40.90 Yen	103.60 Yen
Dividend Per-share	50.00 Yen		30.00 Yen	50.00 Yen

(Note) The "major shareholders" and "shareholding ratio" described above are the same as those in the "2nd Quarterly Report for the 104th Fiscal Year" submitted on November 12, 2021, by Maruhachi Securities.

• The shares of Maruhachi Securities that ACE Securities had possessed (with a shareholding ratio of 43.63%) were transferred to the Company in the form of a dividend in kind on the effective date of November 15, 2021.

5. Future Outlook

The impact on the Company's consolidated performance the matter announced today may cause would be insignificant.

(end)

Contact: [phone], Corporate Communications, Tokai Tokyo Financial Holdings, Inc.