Indication of Advertisements, etc. pursuant to Article 37 of the Financial Instruments and Exchange Act

As a financial instruments business operator, the Company runs an investment management business (limited to the asset management business of an investment corporation), an investment advisory and agency business, and a Type II financial instruments business. Although the Company provides a wide range of operations, both great in variety and highly unique, the financial products in which the Company deals are mainly real properties, beneficiary interests in trust of real properties, and equity interest in silent partnerships (Tokumei Kumiai – “TK”) backed by real estate beneficiary interests, etc.

Investment Risks

When you invest in real estate beneficiary interests and equity interest in a TK, etc., please take heed of the following risks.

• Real estate beneficiary interests and equity interests in a TK, etc. are financial products with real properties that have fluctuating prices as the underlying assets. They do not guarantee the principal. Any and all profits generated or losses incurred from investment in these products will be attributable to you.
• Dividends from real estate beneficiary interests and equity interests in a TK, etc. may decrease due to fluctuations in prices and other indexes in the real estate market. The value of your real estate beneficiary interests and equity interests in a TK, etc. may also decline, resulting in a loss that causes your real estate beneficiary interests and equity interests in a TK, etc. to become deficient or causing your initial principal to disappear.
• Dividends from real estate beneficiary interests and equity interests in a TK, etc. may decrease in line with changes in the credit standing of the parties associated with the TK investment business or the trust. The value of your real estate beneficiary interests and equity interests in a TK, etc. may also decline, resulting in a loss that causes your real estate beneficiary interests and equity interests in a TK, etc. to become deficient or causing your initial principal to disappear.
• Dividends from real estate beneficiary interests and equity interests in TK, etc. may decrease, or a loss may arise, depending upon the operational state (vacancy rate) of the real properties as underlying assets and as a result of changes in rent levels (including those attributable to the market rates prevailing in the neighboring areas and those attributable to causes inherent in the underlying real properties), changes in tenants or sub-tenants, whether or not the real properties in trust are leasable, changes in costs and expenses necessary for the leasing business or in taxes or other public dues, or other similar causes.
• If you suffer a loss as a result of our failure to perform our debt obligations, we shall be liable to compensate you for the loss. However, please note that if we are without sufficient financial resources, we may not be able to fulfill this obligation.
• If the trust estate suffers a loss due to the negligence of the trustee of the trust, the trustee shall be liable to compensate you for the loss. However, please note that if the trustee is without sufficient financial resources, the trustee may not be able to fulfill this obligation. You may also be requested to waive your right to claim for compensation.

Charges and Fees

Asset management business for investment corporations

• The charges and fees for asset management services which we receive from investment corporations, who are our customers, are determined individually based on the articles of association of the investment corporations and the asset management agreements we have with these investment corporations. Therefore, we are unable to state the amount and the method for calculating these charges and fees in advance.

Investment advisory and agency business

• We receive an investment advisory fee from a customer based on the investment advisory agreement we have concluded with that customer. Although the investment advisory fee is determined individually upon consultation with the customer depending on each specific circumstance. Therefore, we are unable to state the amount and the method for calculating these charges and fees in advance.

Type II financial instruments business

• We may receive a fee for the handling of private placement or a fee for intermediary services from a customer based on the agreement on the handling of private placement or the intermediary agreement we have concluded with that customer. Although the amount of the fee for intermediary services is based on the amount of remuneration for mediation services under the Building Lots and Buildings Transaction Business Act, the fee for the handling of private placement or the fee for medication services will be determined in accordance with the services provided. Therefore, we are unable to state the amount and method for calculating these fees in advance.
• Various costs and expenses may be incurred in association with the acquisition and possession of real estate beneficiary interests and equity interests in a TK, etc. These costs and expenses primarily consist of the following: Fees paid to lawyers, accountants, arrangers, asset managers, and similar parties for the formulation, maintenance, operation, and dissolution of the scheme and the preparation and check of related documents; fees paid to real estate appraisers, companies preparing engineering reports, and surveying companies for the performance of due diligence on the properties; brokerage fees paid to brokers; FA fees paid to financial advisers; loan fees, interest, interest cap costs, and similar fees paid to financial institutions providing non-recourse loans; fees paid to the securities company for the handling of private placement; trust fees paid to the trust bank; entrustment fees paid to the administrative agent; audit fees paid to the auditing firm; tax and accounting expenses; PM expenses; building management expenses; costs and expenses associated with the engineering work, repair, and the like of the properties; insurance premiums; utilities charges; registration charges; and fixed property tax, city planning tax, depreciable property tax, and other public dues.

Other Points to Note

• This site is intended only to provide an overview of SRM.
• The information stated on this site may be changed without notice. SRM does not guarantee the accuracy, completeness, and credibility of the content stated on this site.
• The Company does not guarantee the principal and yields of the financial products in which the Company deals.
• Although this site may include certain considerations, plans, estimates, and projections or other forward-looking statements, SRM does not guarantee the realization of any of these statements in any sense.
• Risks and fees, etc. associated with investments differ according to the individual financial product. Therefore, when you make an investment, we ask that you make an investment decision based on your own judgment and at your own risk, making sure to read the pre-contract documents, contracts and business plans, etc. delivered by the Company or a distribution company in advance.
• The fund-related information stated on this site is intended to provide an overview of the investment performance and asset size of the funds SRM is entrusted to manage, and is not intended for the solicitation of investment in the funds. The information is also not intended to serve as a guarantee or promise of future investment performance.