Execution of Chugin Sustainability-Linked Loan (Hiroshima Kasei Ltd.)

The Chugoku Bank (Okayama City; President: Sadanori Kato) is pleased to announce that on Tuesday, March 31, it executed a 'Chugin Sustainability-Linked Loan (*)' for Hiroshima Kasei Ltd.

In this instance, Hiroshima Kasei Ltd. has established specific corporate target figures regarding 'net CO2 emissions' with the aim of realizing a sustainable environment and society through contributions to CO2 emission reduction. By offering interest rate reductions upon the achievement of these targets, the Bank aims to incentivize the attainment of these goals and support the customer's sustainable management.

Through the provision of a wide range of financial services and the exercise of its consulting functions, the Bank will continue to work toward the realization of a sustainable local community.

* 'Chugin Sustainability-Linked Loan' This is a product where customers set corporate goals related to SDGs or ESG, and the interest rate fluctuates based on the status of the achievement of those goals. We have obtained a third-party opinion stating that the product structure itself complies with guidelines formulated by the Ministry of the Environment, allowing for the introduction of sustainable finance with a low burden.

[Overview of the Introducing Company and Sustainability-Linked Loan] - Company Name: Hiroshima Kasei Ltd. - Location: 2-2-11 Matsuhama-cho, Fukuyama City, Hiroshima Prefecture - Representative: Kanji Miyaji - Industry: Rubber and plastic product manufacturing - Sales: 13,830 million yen (Fiscal year ending December 2025) - Loan Amount: 1,000 million yen - Execution Date: March 31, 2026 (Tuesday) - Loan Term: 5 years - Comment: We position the reduction of environmental impact as a key management issue and are implementing a wide range of initiatives, including the transition to environmentally friendly energy, the reduction of industrial waste, and manufacturing and product development that incorporates the perspective of LCA (Life Cycle Assessment). Through these activities, we will contribute to the realization of a sustainable society and lead to the improvement of our corporate value over the medium to long term.

SPTs (*) (*) Sustainability Performance Targets. Corporate goals that bring about a positive impact on the environment.

In addition to these efforts toward achieving the aforementioned SPTs, the company is engaged in social contribution activities and activities aimed at realizing a sustainable society, such as donating 300 pairs of shoes (the company's own products) to Fukuyama City for volunteers during the 'World Rose Convention Fukuyama 2025'.

The Chugoku Bank, Ltd. Phone: 086-223-3111 Public Relations Center: Okajima (Ext. 2255)