Rstered numb&r: 11491073 Charfty number- 1179626 JAPAN HOUSE LONDON TRUST (A company Ilmited by guarantee) ANNUAL TRUSTEES. REPORT (INCLUDING THE STRATEGIC REPORT) AND CONSOUDATED FINANCIAL STATEMEfvirs FOR THE YEAR ENDED 31 MARCH 2026
JAPAN HOUSE LONDON TRUST CONTENTS Pages Tru8teos' report lincluding the ¥trategic reporti Independent auditorfs report 7-10 Consolldated statement of finan¢lal activit1•8 {incorporatlny Income and oxpendlture accounti Consolidated balance sheet 12 Company b•lznc8 sh••t 13 Consolldatod statement Of ¢osh flov 14 Note$ lo the fSnanclal statements 15-30
JAPAN HOUSE LONDON TRUST ANNUAL TRUSTEES. REPORT IIKLUDIMG THE STRATEGIC REPORTI FOR THEYEAR ENCÉD 31 MARCH 2025 The Trustees. who are also diredors for the purposes of cornpanylow. present their report tryether with the audited Consolidated Finaroal Stat•rntrnts ol Japan House London Trust I"JHLT' or'lhe Parent Company" or "the Trust. or 'the Charitable Company°l and its subsidiary undertakings, Japan H.L. Limited I'JHLL'I and Japan H.L. Enterpr15es Lirnit&d I"JHLEL'I Icolleclively'the Group'l for the year ended 31 March 2025. The Truslees confirm that the Annual Trustees, Report linduding the Strategic Report) and Consolidated Finandal Statements of the Group and the Parent Company comply wth the CharrtiesAct 2011 and where relèvant, th& Charities Act 2022, the Ctsmpanies Aot 2006. the Tnjst's Memorandum and Artides of Associatlon. 8nd Accotrnting and Reporting by Charities." Statement ol Recomrnended Pra¢ti¢e applicable to chaith.es preparing their accounts in accordance with th8 Finanaal Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 I'Charitie8 SORP FRS 102.1. REFERENCE AND ADMINISTRATIVE DETAILS FOR THE CHARITABLE COMPANY. ITS TRUSTEES AND ADVISERS Governing Instrumènt Memorandum and Articlès of ASsOation Mambers Sir Wexander David Warren Ms Keshini Navaratnam Mrs Phillida A PutVi5 His Excellency Ambassador Hallm& Hayashi IResigTred 25 October 20241 Rt Hon. Lord Christopher Francis P¥tt¢n of Bames IR8signed on 29 Ju 20241 Truste8# (also the statutory Dlrectors of thè Charltable Company) Ms Kestrmni Navaratnam Sir Aexander David Warren Mr Satoru Yoshida Mr Yukinobu Nakano Mrs Phillida A Pur¥is Mr Tetsuya Shinohara IAppointéd on l April 20251 His Excellency Hiroshi Suzuki IAppthnted on 18 November 20241 Lord Wliam Arthur Waldegrave (Appointed on 30 July 20241 Mr Satoru Ichinokawa IAppcinled on 27 Marth 2024 and iesigned on 5 Dècetnber 20241 Mr Akn'hiko Takada (Appointed on 15 octob 2024 and resigned on 31 March 20251 His Excellèn¢y Ambassador Hajirne Hayashi IResigned on 2S October 20241 Rt Hon. Lord Christopher Francis Patten ol Bsrnès IResigned on 29 July 20241 Pagè 1
JAPAN HOUSE LONDON TRUST ANNUAL TRLISTEES, REPORT ICONTINUEDI IINCLVDING THÈ STRA TEGIC REPORTI FOR THE YEAR ENDED 31 MARCH 202S REFERENCE AND ADMINISTRATIVE DEfAILS FOR THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS {contlnuodl Objects of Charitable Company The Objects ol the Trust are lor the public benefit." al to advance the culture Iboth traditional and modem). Institutions. people. history. and languag• of Japan, and also of Japan's intellectual. arb'slic, scientific and economic life". bl lo promote cultural relationships between people in Japan and petsp in the Unrted Kingdorn.. cl lo piomote learning and advancè all foms ol education relating to Japan., dl to promote research in any ol the ave,. el lo publish the useful results of such resèarch and fj the furtheran of such other exdusively chaiilable objects as the Trustees in their absolute discretion may deterniinè. Solleltors Farrer & Co LLP 66 Lincoln's Inn Fields London VVC2A 3LH Bank$rs HSBC UK Bank Pl¢ 94 Kensington High Street London VV8 4SH Audltor RaInSOn & Hunter Audit LLP statutory Auditor Chartered Accountants Eighlh Floor, 6 New Street Square, New Fetter Lane. London EC4A 3AQ Charitable Company Addrnss & Reglstered office Japan House London 101- 111 Kensington Huh Streèt London W8 5SA Charity Reglstration Number 117962S Company Reglstration Number 11491073 Page 2
JAPAN HOUSE LONDON TRUST ANNUAL TRUSTEES, REPORT ICONTINUEDI lILuDING THE STRATEGIC REPORTI FOR THE YEAR ENDED 31 MARCH 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT The Charitable Company is a regi3ter8d d)arity (charity number 11796261 limiled by guarantee, whose principal object is lo support chaTitsble purposes in whatever manner the Trustees, in their absolLrte discrth"on, think lit. The Trustees, overriding aim is.. al lo advance the culture (both tradib.onal and modem), institutions. people, history, and language of Japan, and also of Japan'8 Intellectual, artistic. scientific ond economic life., bl lo promote GuUr81 relationships bétween people in Japan and people in the Unrted Kingdom., cl lo promote learning and acjvance all forms of education relating tri Japan., dl lo promote research in any ol the above, el to publish the useful results of such research and f) the furtherance of such other exdusively charrt8blÈ objècts as the Trustees in their absolute discretion may dètermine. On 17 June 2020, the subsidiary, Japan H.L. Limited I"JHLL°I, aCqUid a 1000A shareholding in a newly incorporated Company, Japan H.L. Enterprises Limited I'JHLEL I, and Lm 30 September 2020, JHLEL acquired thé busin85s, assèts and opèrations ofThe Shop at Japan House Lond( from Satt and Welcome UK Lirnitsd. Solt and Welcome UK Limited was a tenant olJHLL JHLL is the principal 5eMce provider lo the Japan House London Project on behalf ol the Japanese Mini8ty of Foteign Affairs I'MOFA.). These services indudéd, and continue to be.. operating 8 ¥afe and welcoming publi¢ venue., aNJ enhanisng the project through promob.onal activities and Évènts. The provision ¢f the Japan House LorOn Project on behalf of MOFA was through a direct fijnding arrangement with MOFA for the operation tsf the Japan Hov8e Londtsn Project. In March 2024, JHLL entered into a new ¢onlra¢t with MOFA forthe operatn ol the Project lo March 2029. AppoSntment ol Trustee8 The appointment of Truste&s is govemed by thg Atcles of Association of thè Charitable Compary. Related partles Related parts'es, Iran$aetions are disclosed in Ihg Note 24 in the Financial Statements. Pay ptslley lor senlor staff The Trustees comprise the key management personnel ol the Trust who are in charge of direth'ng. controlling. running and operab.rng the Trust. The Trustees gwe their 'me freety and received no Temuneration during the year ended 31 Marth 2025 nor previous period. There are no staff other than the Tru51ees in the Trust. The number of stsff in the Group is disdosed in Note 9_ Internal Controls The Trustees have overall responsibility lor ensuTing that the Trust has appropriate systems ol intemal controls. They are also Tesponsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charrtable Company and Gioup. The Trustees are also responsible for safeguarding the assets of the Charitable Company and Group and hence for taking reasonable steps ttswaids th& pievention and cSetÈction ol fraud. The system of intemal controls is designed to provide reasonable, but not absolute. assuran against material rnisstatement or loss. Page 3
JAPAN HOUSE LONDON TRUST ANNUAL TRUSTEES. REPORTICONTINUEOI IINCLUDING THE STRATEGIC REPORTI FOR THE YEAR ENDED 31 MARCH 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT {contlnuodl Govemance and Rlsk Management A risk assessmènt has been undertaken which comprises.. an annual review ol the risks the Trust and Group may face., the establishment of systems 8nd piocedures to mrtlgate those risks. and th8 implementation ol proc¢dures designed lo minirnise any potential impact on the Trust and Group should those risks materialise. This continuing pror28swiII identify risk area8 to whid) the Group is vnerable and highlight any néeèssary safaguards that will nead lo be put in place, The Trustees are of the opinion that an adequate risk management process is in a¢e al the Group, whereby key risks facing the business are documented and reviewed. The Trustees, along with the Board ol Directors in JHLL rnonilor the progress of the Group by reference to certain financial and non•financia key performance indi¢attsrs, for example, number of visFtors to Japan House London. Key risks for JHLL and hence for the Group are visitOT nLJmbers and exhibitions. The succe$$ ol JHLL and the Group is largely dependent ort visitor numbers and a stron9 public programrne. The Group liaises closely with MOFA rtgafding the planning of forthcoming events and exhibih"ons. The level of vi811ors may also be affected by major events in London, such as security issues or disruption to international travel. The currenl performance environment ol'high slreef, retsil and other global fadors which may affecl JHLL and the Group 8r9 also closely monitored. In addition, the Trustees have taken due considerab'on olGiod Governan-A Code for the Voluntsry and Community Sectoi, ensuring that the six rnain principles of this Code are a¢Jhered to. These are Organisational purp05e', Leadership, Integrity.. Decisiorkmaking, risk and ct)ntrol', Board effectiveness", Equality, diversity and indusion,. an(J Openness and accountability. The Trustees recognise that good governance plays an essential part in securing the fvrture of the Trust and confirm that the said main principle5 of thi5 Code are followed by Ihem in leading. directing and managing the Trust and Group. Ongoing geop011cal events and economlc Impacts The ongoing geopolitical events and economic impacts thereof have undoubtedly had an effect on UK companies in wlde ranging manner. potentially affecting their operational capability, liquidity and financial position. The Trustees have tonsidered the irnplicab'ons arKI have put in Pla business continuity plans that should allow Ihe Charitable Company and the Group to continue in opeTalon. FSnan¢ial k8y performance indicators With the tsrtsup operating in a challenging environment. adverse foreign exthange r8te movements and inflationary pressures during the year, the results of the Group show defi¢it in the rt rnovemenl ol funds for the year 012157,138 (2024. net Irjcome of £887,539 as restate and total funds carried fopNard of £4,178,249 (2024.. £4,335,387 as r&sl818<Y). Pag8 4
JAPAN HOUSE LONDON TRUST ANNUAL TRUSTEES. REPORT ICONTINUEDI IINCLUDING THE STRATEGIC REPORT) FOR THE YUR ENDED 31 MARCH 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT {eontlnuedl Fundraoslng The Trustees have Telerred to the Code of Fundraising Practice rthe Code I which was developed by the fvndraising community through the work of the lnsts.tute ol Fundraisin9 and Public Fundraising Assoc18tion. and tre Guidance on Charities and FundraisirvJ issued by thè Charity Commission I'CC20"1 and the Charities IProteclion and Sorial Investmentl Acl 20161.the Acri. They confirm that the Code, CC20 and the Act have no impact on the Charitable Company 88 rt does rK)t engage in any public fundraigng activities. Polky on Resery The Trustees have estal$hed a reserves policy to en$ure the financial stability ofth8 Trust and its trading subsidiaries, recogni$ing thè Trust's reliance on inrxjme generated by the subsidiwies. sets a target to hold reserves equwalent to nine to hyelve rnonths, consolidated operating expenses. The balance held as unrestricted funds as at 31 March 2025 01 the GToup was £4,178,249 12024.. £4,335,387 as state. The net assets of the Tru$l are regarded as unrestiicted and the available funds at 31 March 2025 will spent in future nadS in accordan with Ihe Trust's charrtable obJ"ects. Th"5 level of reserves providès a financial buffer against unforeseen nsks, Income fluctuats'on$, and operalitsnal needs, ensuring the sustainabilty ol our charitable ath"vib"es. Tke re88rves policy is remewed annually to rèflèct changes in finanrial risks, Income Sour8, and future plans. STRATEGIC REPORT OBJECTIVES, ACTIVITIES, FINANCIAL REVIEW AND FUTURE PLANS The objectives of the Trust are such exclusively charrtable purposes as the Trustees may In their abstslute discretion determine but not limited to advancing the culture ol Japan forthe public banefit by making grants to org8ni58tions and charitable projects. Thè Trustoes may use the inTh?me and the caprtal of the Chartsble Company in promoting the objectives of the Trust. During the year, JHLL presented exhibKlons. demonstrations, talks 8nd events in Japan House and online showcasing aspe¢ls ol Japanes8 culture on b6hall ol the Trust. The Tiust made grant5 to eight organisth.ons to promote further education in Japarese language and culture during the year. The Trustees have continued to develop ar iefine their strategies, policies and pr(edureS to further the objectives ol the Tiusl and keep these under ctsnstant review. The results ol the Group 8ctivilies forthe year are detsiled on psge 11. Plans for Future Perlods The Trustees do not propose te deviate Irom the current objectives and activities of the Trust. The Trustees are actwely considÈnng proposals for funding of projects which will supplement and extend the work done by JHLL. identifyin9 adivities to fosler relationships with appropriate oiganisalion5 and give weight to future work beyond the Japan House LoThdon buildtng. STATEMENT OF PUBUC BENEFIT The Trustees are aware of the Chanty Commission guidan¢e on Public Benefit and confirm that they have complied wrth the duty in Se¢titsn'4 of the Charities Act 2011 to have due regard lo it. They wn5ider the information in this annual report, about the Trust's aims. activibes and achievements in the ar88s of Interest thatthe Trust svpports, dernonslrates the benefit to its b¢n&ficKariès and through them ID the public, which arise from those activities. Page 5
JAPAN HOUSE LONDON TRUST ANNUAL TRUSTEES, REPORT ICONTINUEDI (INCLUDING THE STRATEGIC REPORTI FOR THE YEAR ENDED 31 MARCH 202S TRUSTEES, RESPONSIBILITIES STATEMENT The Trustees Iwho are also directors of Japan House London TTUSt for the purposes of npanY lawl are responsible for preparing the Annual Tru51ees' Report (including thé Stratègic Report) and the financial staternents in accordance wilh applicable law and Unrfted 'ngdoM Acwunting Slandard8 (United Kj'ngdom Generally kGepted Ac£ounting Practice). Company18w reqUIS the Trustees lo prepare finan¢ial statements for each finaneiÈl year. Under company law. th Trusteès must not approve the finanaal statements unless they are satl8fied that they give a true and fail view of the 8tate ol affairs ol the Gharitable Company and the Group and of thè Incoming resources and application ol reSoUrs. indudin9 the income and expenditure, of the Groupforthat period. In preparing the$e fflnancial statements, the TiuslgeS 81e required to.. select suitable ac¢ountin9 policies and Ihen apply them consistently". observe tr¢ methods and prnGip18S Ill the Charities SORP 2019 IFRS 1021.. rnake judgements 8nd estimates that are reasonable and prudent". state whether applirAble UK accountin9 Standards have been fc41owed, subject to any material departures disc105ed and explained in the financi81 st8temÈnts'. and prepare the financial statements on the going 0)nr basi8 unless it is inappropriatè tts presume that the Charitable Company and thg Group will continue in operation. The Trustse$ are responsible for keeping adequate acxounting records iliat disdo$e with reasonable accuracy at any time the finanual pts5.0n of the Charrtabl¢ Company and the Group and enae thern to ensuie that the financial statements ¢tsmply wth the Companies Act 2006. They are also responsiblè for safeguarding the assets of the Charitable Company and the Group and hencA ftsr taking reasonable steps forts prevention and detection of fraud and other Iegularl"e5. In so lar as the Trustees are aware.. there is no relev8nt audit Information olwhich the Charitable Company s ar the Group's auditor is unaware,. and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant 3udit information 8nd lo establish tt the auditor is aware of that inlormth"on. The Trustees are responsi1e for the maintènan¢e and integrity ol the corporate and financial information induded in the Charitabl8 Company's website. Legislation in the United Kingdom goveming the preparation and dis5eminalion ol finanTha1 statements m8y differ from legislation in otherjurisdt1ons. Approved by (he Trustees and signed on their behalf by Mr S*0 Trustee Yoshida Date." 17 Decernber 2025 Pag?
JAPAN HOUSE LONDON TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JAPAN HOUSE LONDON TRUST OPINION We have audited thè financial statements ofJwan House London Trust rthe Charitable Company") and ts 5ubsidi•ritrs I'the Grtsup'l lor the year ended 31 March 2025 which comprise the Consolid81ed St8tèmènt of Finanaal Activities lincorporating Incornè and Expenditure Accounti, the Consolidated and Charitable Company Baance Sheets. Ihg Consolidated Statement ol Cash Flows and notes to the financial statements, including 8 summary of significant accounting policie5 The financial reporting framework that has been applied in their preparats'on is applicable law and United Kingdorn Aecounting Standards. including Financial Reporbng Stsndaid 11Y2 The Financial Rèporting Standard applicable in the UK and the Republic of Ireland (United lQ"ngdom Generally kGoPted Accounting Practice). In our opinion the fi'nanrial $tslements'. give a true aThJ fair view of the state ol the Group's and the Charitable Company's 8ff8irs as at 31 Marth 2025 and of the Group's incoming resouices and application of resources, including its income and expenditure forlhe year then ended., have been properfy prepared In acrdance wth United Kingdom Generally Aecepted Accounting Practice". and have been prepared in accc(dan¢e with the requirements ol the Companies Ac12006. BASIS FOR OPINION We conducted our audit in acctsrdan with Intemational Standards trn Auditing IUIQ IISA5 IUKII and applicable law. Our responsikn'lrties under th0 standards are furthèr described in the Audf(0rf5 responsibilities lor the audit ol the financial statements section of our report. We are independent olthe Group arKI th• Charitable Cornpany in 8ccordanr th the ethica requirements that are relevant to our audit tsf thè financial statements in the United ngdOM, including Financial Rerting Counal'5 Ethical Standard, and we have fulfilled our other ethical re5pon5ibililies in accoidance th these requirements. We believe V)at the audit eviden we have obtained is sufficient and appropriate to provide basis for our opinicrt. CONCLUSIONS RELATING TO GOING CONCERN In auditing the fiDancK41 statements, we have concluded that the Truslee8' Us? of going concem ba515 Qf accounting in the preparation ol the finarJaI stslernoJts is appropriate. Based on the work we have perforTned. we have not idènlfied any material uncertainties relating to events or condilons that, IndDiidually or collectively, may cast signifiGgnt doubt on the Group and Charrtable Company's abilty lo conlinue as a going concern for a per of al least Iwelve mcnlh5 from when the financial statements 8r8 authorised for issue. Our responsibilities and the responsibilits.es of the Trustees with respect to going concern 8r8 dèscribed in the levant settior6 of this repDrt. OTHER INFORMATION other lnfomi8b.on comprises the information included in the Annual Truste8s' Report linduding the Strategic Reporti and the Consolidated Financial Statements, other than thÈ Consolidated Financial Statements and our Auditor's report theieon. The Trustees are responsible for the other information. Our opinion on the finanaal slalernen15 does not cover the other inforrnation and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibilty is lo read thè other information and, in doing so. consider whether the other information Is materially Inconsistent with the financial statements or our knedge obtained in the course of the audrt or otherwise 8ppèars to be materially misstated. If we identfy such material Inconsistenae8 or apparent material misstatemenis, we are required lo determine whether this gives rise to a material misstatement in the financial ststernents themselves If. based on the work we have performed. v4e condude that Ihere Is a material misstatement ol this other information, we are required lo report that fad. We have nothing to report in Ihis regard. Page 7
JAPAN HOUSE LDON TRUST INDEPENDENT AuDIT0s REPORT TO THE MEMBERS OF JAPAN HOUSE LONDON TRUST ICONTIMUEDI OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion. based on the wuk undèrtaken in the cx)urse ol the audit.. the information given in the Annual Trustees, Report (incorporating the Stratle Report and the Diredors, Report prepared for the purposes of company lawl for the f nancial year for which the finan¢ial statemenls are prepared is con8lStenl wilh the financialststernents. the Annual Trustees, Report (incorporating Ihe Strategic Report ¥nd the Directors, Report) have been prepa In accordanctr wrth applicable legal requiremtS. mAERs ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of our knowledge and understanding of the Group and the Charitable Company and its environment obtained in the course of the audil, we have not identified material rnisstatements in the Annual Trustees. Report lincotpor8ling the Strategic Report and the Directors, Reporti. We have nothing to report in r88pect of the following matters in relation lo which the Comp8niÈs Act 2006 requires us lo r$port to you if. in our opinion.. the Charitable Company has not kept adequatè accounting rÈeords, or retums adequate for our audit have not been réeeived from branches not visrted by u8.. or the Charilable Cornpsny financial statements are not in agreement wth the awunbng rdS and retums.. or certain disdosures ol Tru51ees' rernun&ralion specifiÈd by law are not rnade.. or we have not reiVed all the1nformation and explanations we require for ouraudit. RESPONSIBILITIES OF TRUSTEES As expl8ined MO lully in the Trustees, ResponsibilrtiÈs Statement on page 6, the Trustees (who aTe alsts the directors ol the Charitable Company for the purposes ol company lawl are responsible lor tre preparation of the financial statemen15 and for being satisfied that they give a true and fair view, and for such internal cgntrol as the Trustees detemine is necessary lo enable the preparation of fin8n(xal statements that are free from material misslatèrnenl. whether due to traud or error. In preparing the financial statements, the Trustees are rèsponsible for assèssing the Group's and the Charitable Company's ability lo continue as a going concem. disclosing. as applicable, matters lated to going concern and using the going cornrn b8sis ol a¢¢ounting unless the Trustees erther intend tts liquidate the Group or the Charitable Company or to ¢¢ase operations, or have no realistic alternative but to do so. AUDITOR'S RespoNSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whdher the finanaal slalem8nts as a whole are free from material misstatement, whether due to fraud or error. and to issue an Auditoi's Report that includes our opinion. Reasonsble assurance is a high level of assurance but is not a guarantee that an audit Conducted in accordance with ISAS IUKI wll always detect a mat8rial misstaternent when il exists. Misstatements can arise from fraud or error and are considered matgrial if. individually or in the aggregate. they couNg reasonab be expected to infiuence the econornic decisions of tjsers taken on the ba515 of these financial ststements. IrrUlaritIes. including fraud. are instances ol non-mplianee with laws and règulations. We design procedures in line with our responsibilities. oullined above. to detecl material misstatements in respect of iiiegularities, induding fraud. The extent to which our procedures are capable ol dete¢llng irregularities, including fraud. is detailed below. Our assessrnent ol the susceplibilty of the Charitable Company's and th8 Group's finan¢ial statements to material misstatemen( including how fraud might occur, is considered to be low. This cOrlusion was reached after thé nsideration of Ihe following.. Page 8
JAPAN HOUSE LONDON TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JAPAN HOUSE LONDON TRUST ICONTINUEDI AUDITOR'S RESPONSI8IUTIES FOR THE AUDIT OF THE FINANCIAL STA TEMENTS Icontlnuedl dug to the relatively low volume of transactions, we have high visibility to all the rnatttrial Ir8n$a¢XIo and adjustments., dueto the relatively simple operational model ollhe Charitable Company and the Group Ih¢ie are comparative lew unexpeded fluctuations in the reported i&sults and balances 8nd any $Lh unexpected items wjld be spècthcalty enquired into by us., and there are a number of individuals which comprise'managernenf and Iherelore there is m single individual who is Iikew to be able lo override ctsnlrols to affect a fraud. We designed our audit procedures to respond lo identified audit risks, induding non-cornpliance wth laws and regulations lirregularitie51 that a materi81 to thè finanaal statements. Some of thè ¥)eufic procedures perfomied to detaet ifrègularities, including fraud, are detailed below. the review ol o)ntrol acwunts and joumal entries for large. unusual or unaulhwsed entries., di5¢USSIOns with management involved in the risk and compliarbcÉ [uffttns induding corlder*10n of krrf)wn or suspected instan$ of non-compliance with laws and regulation and fraud", anatytical review of thè detailad Statemenl of Financial Acts"vibes for varian$ that are either Unexpect or considered not to be in accordance wrth our understanising of the Charitable Company during the year., obtaining ¥nd 18viawng for cornpleleness a list of enteS and persons considered to be related partS las defined by Financial Reporttng Standard 1021 arKI reviewing the kdgers of the Group for previously unr¢port8d related paty transactions., reviewing correspondenco and agreernents bth88n thè Group and other parts"e5, and discus%or& with management In relation to their compliance wbth the chafi18 SORP FRS 102., review of thé Trustees, and directors, meth.ng minutes to identify unrecorded transaction5,' designing audit procedures to incorporate unprèdictabihty around the nature. timing or extent of our tesl'ng,. review of Iiansadions and journals for any indicatn of fraud or managemènt override., and assessing the apprtrpriateness ol the going conrn basis with reference to the Chatitable Company'5 and the Group's current performance and expectations for future periods. Because ¢1 the inherent limitstions of an audit and the audit proeÈdures described above, there is an unavoidable risk that we will not have detected all irregularitie5. Induding some leading to material rnisstatements in the financial statem8nts, even though we have property planned and performèd our audit In accordawe wrth auditing standards. For example. the lurther removed norFcomp1ian with laws and regulations lirr¢gularitiesl is from the events and transactions reflected in the finanaal statements, the less likely thè Inherently limited procedures reqUId by avdrting stsndards would identify In addits'on, as wth any audit, there remains a higher ii5k ol nondeteclton of irregularities curring due lo fraud rathei than errtsr, as fraud involves ir)tèntional conTralment, collusion. forgery. Intentional omissions, misrepresentations, or ttte override of Internal controls. We ale not responsible for preventiw non compliance and cannot be expected to detect nOrCOMplIance witt) all laws and reguL8lions A further descriptitrn ol our responsibilihes lor the audit of the fin8nci81 starements is located on the Fin8ncial Reporting Council's website 8t.. www.frc.org.uklauditorsresponsibilities. This (Jescription forms Part of our auditor's report. Page 9
JAPAM HOUSE LONDON TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JAPAN HOUSE LONDON TRUST (CONTINUED) USE OF OUR REPORT This report is made solely to thè Charitable Company's members. as a body, in accordance with Chapter 3 of Part 16 of the Companie8 Act 2008. Our audit work has been undertaken so that we rnight stale to fhe Charitablè Company's membprs those matte13 we are required to state to them in an auditors report and for no c)ther purpose. To the fulle51 extent perrnitted by law, we do nol accept oi assume responsibility lo anyone othei than the Ch8rit8blè Company and ts members as a body, for wr audit work, for this report, or forthe OniOnS we have fomied. Yuelino Wei IS8nioi statutory auditor) for and on behalf ol Rawllnson & Hunter Audlt LLP Statutory Auditor Chartered Atntants Eighth Floor 6 New Street Square New Fetter Lane Lortdon EC4A 3AQ Date.. Page10
JAPAN HOUSE LONDON TRUST CONSOLIDATED STA TEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2025 Unr•stricted Fund8 Totsl Fund$ A$ rest8ted (Note 27) Total Funds (All unrastricledj 2024 2025 2025 Not• INCOME FROM: Other trading actsvities Interest receNable and similar Incme. TOTAL INCOME 10.086,692 17.641 10 084.333 10,066.892 11.117,119 15,873 11, 132,992 10 084 333 EXPENDITURE ON.. Ctsst ol other trading activities Charf(able adivities Interest payable and similar expenses TOTAL EXPENDITURE 10.198,267 101,042 17.641 10316950 10,198.267 101,042 17.641 10316950 9,840,568 119.283 31,052 9,990,903 Net (Expendlturelllncome beforè TaxatSon 1232,61n 1232,6171 1,142,Q89 TAX CREDITIICHARGEI 54.5x1 NET IEXPENDITUREIIINCOME BEFORE OTHER RECOGNISED GAINS AND LOSSES 157138 887 539 NET IIOVEMENT IN FUNDS 887 539 RECONCILIATION OF FUNDS: Total ndS brought forward la8 restated) TOTAL FUNDS CARRIED FORWARD 4,335,387 4 178 249 4 335,387 4 178 249 3 447 848 4 335 387 The Consolidated Statement ol Finanryal A¢tivilies includg all gains and losses reco9nfLed in the period. All income and expenditure derived from continuing activth"ès. £15,873 01 interest income eamed on the deposit held ryth the18ndth recognised within other traLling aCtrtIeS in the prior year has been reclassified to show as interest recryvoble and similar in¢c>mè. The notes on pages 15 to 30 forni part olthe$e finarLig1 Stsiements. Page11
JAPAN HOUSE LONDON TRUST CONSOLIDATED BALANCE SHEET AT 31 MARCH 2025 Registered number.. 11491073 Charity numb8r 1179626 As r8Stated (Note 27J 31 Thdarch 2024 31 Marth 2025 Note FIXED ASSETS Intangible assets T8ngible assets 12,13 14 11857 229,749 44,378 215.267 242,606 259,639 CURREMf ASSFrs Stock Debtors Cash at bank and in hand 15 281,404 3,019,847 6,441,539 9,742,790 274,015 3,087.933 6,914.676 10,270,564 17 CREDITORS.. amounts falling due within one year NEf CURRENT ASSETS 18 3,404,479 . 761,59J 6 338,311 6.5Q9,014 TOTAL ASSETS LESS CURRENT LIABILITIES 6,580,917 6,768,653 CREDITORS.- amounts falling due after more than one year 19 11.598,69Jl (1,581,052) PROVISIONS FOR LIABILITIES Other provisions 21 803,975 NET ASSErs 4,178,249 4,335.387 CHARITY FUNDS Unrestricted funds SHAREHOLDERS, AND CHARrrYs FUNDS 4,178,249 4,335,387 4 178 249 4.335,387 The financial statements were approved by the Trustees and authorised for issue signed on their behalf by.. Mr Salo oshida Trustee Date". 17 December 2025 The notes on paw 15 to 30 form part ofthese fina91 statements. Page12
JAPAN HOUSE LONDON TRUST CHARITA8LE COMPANY BALINCE SHEET AT 31 MARCH 2025 Regk8tered nuThb¢r'. 11491073 Charity numb8r'. 1179626 31 March 2025 31 Alarch 2024 Note FIXED ASSETS Investments 25 CURRENT ASSETS Debtors Cash al bank and in hand 16 17 7.921 717,734 725,655 7.921 851, 167 B59.088 CURRENT LIABILITIES Creditors- amounts falling due wlhin one year le 18.515 NET CURRENT ASSETS 707,140 808, 783 TOTAL ASSETS LESS CURRENT LIABILITIES 707,141 608, 184 TOTAL ASSETS 707.141 THE FUNDS OF THE CHARITABLE COMPANY Ljnrestricted income fund 707,141 808,784 TOTAL CHARITABLE COMPANY FUNDS 707,141 8J8, 184 The Charitable Company has tsken advanl8ge of exemption allowed under section 408 01 the Companies Act 20( and has not presented its own Statemént of Fnancial Athties in these financial statements. The financial statements were approved by the Trustee8 and authorised for Issue and signed on their behalf by-. Mrs u Yoshi Trustee Date.. 17 December 2025 The note5 on pages 15 10 30 foryn part olthese financol statemonts. Page 13
JAPAN HOUSE LONDON TRUST CONSOUDATED STATEMENT OF CASH FLOl•VS FOR THE YEAR ENDED 31 MARCH 2025 As reslaled (Nol8 2n 2024 2025 Note CASH FLOW FROM OPERATING ACTIVITIES: Nel movement in funds ADJUSTMENT FOR.. Depreciation oltangible assets Arnortisation of intangible assets Tax lueditllcharge Int8rest re1vable Interest payable Increase in stod Decreasellinueasel in debtors Decrease in creditors Decrease in provisions Tax paid 1157,1381 887,539 14 12.13 103,747 31.521 175,4791 117,6411 17,641 17,3891 249.477 1111,4371 148.2391 1339.9061 59.308 706,802 254,55Q {15.872) 31,052 (67.339) (553,540) (1,46t. 726) (96,384) (15.216) 10 15 16 18,19 21 NET CASH GENERATED FROMIIUSED INI OPERATING ACTIIThIES 354.843 870,827 CASH FLOW FROM INVESTING ACTMTIES: PLJrchases of fixed assets Interest receivable NET CASH USED IN INVESTING ACTIVITIES 14 1118,23SI 17,841 100,5941 . (73,842) 15,813 57.969 CASH FLOW FROM FINANCING ACTIWTIES- Interest payable NET CASH USED IN FINANCING ACTIVITIES 10 17,$41 17.641 37,052 CHANGE IN CASH AND CASH EQUIVALANTS IN THE YEAR Cash and c8sh equivalents brought forward CASH AND CASH EQUIVALENT CARRIED FORWARD 1473,0771 6,914 616 (959.848) 7,874,464 17 6,441,539 6 914 676 The note5 on pages 15 to 30 form prt ollhes&ffinanck?l $lalem8nts. Page 14
JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 202S GENERAL INFORMATION Japan House L()ndon Trust l the Tllr or'thè Parent Company. or'the Charitable Cornp8ny"l is 8 registerèd charrty (Ltharty number 11796261 lirnited by guarantee. whose principal object Is to support charitable PLMposes in whatever mannei the Trustèes. in their absolute di%relion. Ihlnk fit The address of the regislèiad office 1$ 101 111 K8nsington High StreeL London W8 5S The Trustèès, 0dIng aim 15.. 81 lo athIa the cutture (both tradrtional and medern), IrlLUtIonS. Feople, history, and language of Japan. and also of Japan's intelle¢tual. artists"¢, s¢ienb"lic and econornic life, bl to promote cultural relationships between people in Japan and people In the Uniled Kingdom.. cl to promote learning and advance all forms ol eduoation relati to Japan,. dl to promote research In any of the above., el to publish the useful results of such resaarch and fj the furlherance trf such other exdusively charitable objects as the Trustees in their absolute discretion may deletmine. In th& event of the Trust beiThJ wound up, the liability in resped of the guarante8 1$ Ilmll8(I to £1 per mémber of the Charitable Company_ ACCOUNTING POLICIES 2.1 Basffs of proparation of finJelal sttom•nts The financral stalemenls have bÈèn prépared in accordance with Atsountsng and Reporting by Charpties.. Statement of Rewmmended practi applicable to ¢harilies preparing their accounts in accordance with the Financial Reporting $18ndard applicable In the UK and Republi¢ of Ireland IFRS 1021- (Charth'es SORP IFRS 10211. the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021, chare8 Act 2011 and. where relevant, the Charib8s Act 2022, and the Companies Act 2006. The Trust meets the definition of a public ben&fil ents.ty under FRS 102. The Consolidated Statement of Financial A¢tiwtles ISOFAI and the Consolidated Balaneè Shéet consolKlatè thè financial statements of the Tiust and its subsidiary undertaking5 1"the Group'l. The resutts of the subsidiaries, Japan H.L. Limrted I'JHLL.) and Japan H.L. Enterprises Limited l JHLEL.), are consolidat8d On a lin8 by li b8SIS. No separate SOFA has been Fx¢sènted for the Trust alone as pemiffted ty section 408 01 the Companies Act The net income and expendrture for theyeardeallmrithln the accounts of the Parent Companywa5 net expen(Iture of £101.IX7 (2024.. £19,281). The financial statemt$ are prepared in Stèrling GBP thich is the functional currew of the Charitable Company & rts subsKliaries, JHLL and JHLEL. The preparation olfinancial statements in complianGe with FRS 102 requires the use of rtain ¢rib¢al accounting estimates, 11 also requires managernent to axèreise judgment in applying the Group's accounting poliues (see Note 2.22 below). B*sls of consolidgtioii The consolidated fi'nanrial statements present the results of the Trust and its own subsidiaries as if they form a single entity. Intercompany transactions and balancès befvrfeen group companies are therefore eliminated In full. The consolidated financial statements incorporate the resulls of business combinations relatiry to the subsidiaries using the purchase method. In the Consolidated Balance sheet. the acquiree's identifiable assets. liabilities and contingent liabilitie5 ar8 initially recogni9ed at their lair values at the acquisition date. results of acquired operations are Induded in the Consolid8ted Ststement of Financial Activibes trom the date on which control is obtained. They are dec(nsdidated from the date control ceases. The noles on pages 15 to 30 fomi part ofthese financial slalements. Page 15
JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POUCIES l¢ontlnuedl 2.2 Going cone•m Al the Balance Sheet dale. the Grovp and the Parent Company had net assets of £4.178.24912024." £4,355,387 8$ restatedl and £707,141 12024.. £808, 1841 respectively and cash balane of £6,441,53912024.' £6.914,6161 and £717.73412024." £851, 16n respectNely. The ongoirg ge0polital events and eGonornic Impacts Ihereol have undoubtedly had an effect on UK companias in a wlde ranging manner. pot8ntialty affectin9 their operath.onal capability. Ih]uidity and financial posth'on. The directors have considered the implication5 8nd have put in place business ntinuIty that have allowed the Group and the Paront Company to conts.nua in operation. The dire¢ttys have also reviewed thè Group's and the Parentcompany's current and expected liabilities and cash ouffiows arising fron) its activity over the next twelve months. The directOTS are confident that the Group and the Parent Company wll be able to meet its liabilities as ihey fall due for a period of at least tw8fve months from the date of siwature ol the financial statements. The fi.nancial statements have been prepared on the going concern basi5. 2.3 In¢om• fmm tradlng a¢tivltles Revenue eamed includes service revenue earned by Chargi a margin on costs reimbursed from the Japanese Ministry of Foreign Affairs I'MOFA'I. In addibtsn. JHLL has earned rent revenue related lo concession agreements to use certain areas ol the Japan House London premises. Thè Group has adopted tre accoLmting policies below lo account lor this rent revenue. the area of the Japan Housè London premises occupied by tenants is distinuui$hed into two Cateries, principal and agency. based on act"e$ they conducl.. rent revenue derived from the area acting as prin¢ip81 is recognised gross,. an¢J rent revenue derived from the area acting as agency is recognised net Rèvenue is rec£gnised to the extent that il is probable that the econom1¢ benefits wil flow to th& Group and Ihtr revenue Gan be reliably measured. Rèvetmje is measured as the fair value of the considèratK)n received or ieceivable, excluding discounts, rebates, value added tax and other sales taxes. Rèvènue earned also irKludes income from sale al goods by JHLEL. The followqng crrteria must also be met before revenue is recognised.. R8v•nu• fmm Sale ofgoods ReVu& from the sale of goods is recognised when all of the following conditions are satisfied.. Ihe Group has transferred significant risks and rewards of ownership to the buyer,, the Group retains neither continuing manÉ9erial involvernenl to the degree usualty associated wlh ownership nor effective Control over the goods sold., the amount of révènue can be measured reliably". it Is probable that the Group will receive the consideratK)n due under the Iransadi(x), and the costs irKurred or to be incurred in respèct of the tranSactIn tan be measured rellay. The notes on pages 15 to 30 Igmi part ofthese financral 51aternents. Page16
JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEOI FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES l¢ontlnuedl 2.3 Income fmm tradlng activities (eonunued) R•ndering ofswvle•s Revenue frorn 8 contract to provide servSces is fecognised in the year in which the services a provided in a¢cordan¢e wrth the slag¢ tsl compktion of ihe contract, bthen au ol the follon9 conditions are satisfied.. the 8¥nount of revenue can bfr measured reliabty, it is probable that th8 Group will receive the consideration due wder the eontract,. the stage ol complelion ol the contract at the end ol the reporting year can be measured reliably., and the costs incurted and thg costs to Cornete the contract can be rneasuréd reliably. 2.4 Donation Income Income is iecognised by the Tiust once it has entrUement to th8 funds and il is probab18 that the fijnds will be rfceived by the Trust and the monetary value of Incoming resources can be measured wf(h sufficient reliability. Donated SENices and f8clI.s are Included al the Val to the Trust where this can be quanl'lied. Dgnalion income in thè Trust is deferred when the Ik)nab"ons are recewed in advan and specified by the dorK)r as relating to specific aecounling peri¢)ds." ()r alternalNely aTe subject to condibons which are still to bè met and whith are outside the control ol the Trust., or wn it Is uncertain whether Ihe conditions can or wll be met. These are deferred to the yearto which th•y relate and released to incoming re$ourcès in that pèri(xl. 2.5 Int•r•stln¢ome Int8r8st income is rewnised using the effective interest method. 2.6 Invgstmènt Incom¢ Invèstment income reprèsènts interest receivab frtsm bank depDsts. 2.7 Cost of tradlng and charltablè aellvltl•s All expenditure is accounted f(x c>n an accruals basis and has been classffied under headings that agggate all costs related to that Gate90ry. Expendituie is recognised where there is a legal or constructive obligation to rnake payments to third partses. it is piobable that the settlement will be qUired and the arnount of the obligation can be measured reliably. Irrecoverable VAT is charged as an expen8e against the actNity ftr whi¢* èxpenditure arose. 28 Finance Costs Finance costs are charged over the term of the debt using the effedtva interest method so that the amtsunt charged is al a constant rale on the carrying amount. l$sue ¢05ts are initially recognised 8s a reduction in the preedS ol the assoryat8d capital instrumenL 29 Ststus offunds Unrestricted fvnd5 aTe funds which are available for use at the discretion ol the Trustees in ftJrther8nce Df the general objeGlives ol the Ch8riiablÈ Company. The nol¢s on pages 15 to 30 fonn part ollh&s& financi21 stataThnls. Page17
JAPAN HOUSE LONtK)N TRUST NOTES TO THE FINANCIAL STA TEMENTS ICONTINUEDI FOR THEYEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES leontlnuedl 2.10 Current and deferred t8xatlon The tax expense for the year comprises current and deferd tax lor the subsidiaries trading company. Tax is recognised in profit or loss exp1 that 8 tharg8 attributable lo an Item of income and expense recogni$éd as olhei wmprehensive income orto an item recognised dire¢tly in equity is also recogni5gd in othercomprehensive income or directly in equity respectivety. The current income lax charge is calculated on the basis of tax rates and laws that have been enacted or substanlivety enacted by the reporting date in the countries where the Charitable Company opefates and gènaratès incorne. Deferied tax balances are recognised in respect of 811 timing dIfferenS thèl have orlglnated not reversed by the Consolidated Statement of Financial Position date, except that". The recognition of deferred tax assets is limited to the extent that (t is probable that they wll be recovered against the reversal of defeired tax liabilities or other future taxable profi'ts, and Any deferred tax balances are reversed if and when all condikn'ons for Ketsining assoaated tax ollowances have been tnet. Deferred tsx b8lances are not recognised In respect of perrnanenl diN8rénces eXpt in respect of business mbtnatv)ns, when deferred tax is recognised on the difforences betsyeen the fair value8 of assets acquired and the future tax deduction8 available for them and the differences beeen th8 fail valuas of liabilrties acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and law8 that have been enacted or substantively enacted by the reporting date. The Trust is an exempt tharity within the meaning of Schedule 3 of the Charitiés Ad 2011 and is considered lo pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definrtion of a Trust for UK corporation la¥ purposes. Zll Fgrelgn eurr8ncles The Parent Company's 3nd Grgup's functional and presentational currency is Sterfing G8P. Monelary assets and liabililies denominated in foreign currencies are translated into Sterling at rates of exchange ruling al the Balance sheet dale. Tran88Ctions in loreign currencits ai•translaled into Sterling GBP at the rale ruling on the date of the tranSl0n. Foreign exchange gains and lossès resulting from th¢ settlement ol transac*ons and from the translation al perio&end exchange rates of rnonelary assets and liabilrties denominated in foreTh currènaès ara recognised in the Consolidated Statèment of Financial Acts'vities. 2.12 Pen$lons The Group operates 8 defined contribution pension scheme lor its ernployetss. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entty. Once the rDntribulions have been paid the Group ha5 no further payrnenl obli9alion5. The contributions are recognised as an expense in the Consolidated Statement of Financial Activities when they fall dLte. Amounts not paid are shown in a¢¢ruals as a liability in the Gonsolidatetj Balance Sheet. The assets lo the plan are held separ8lely from the Group in indep8nd8nUy administered fund5. The notes on p)gÈs 15 to 30 form part of these financial statements. Page 18
JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POUCIES l¢ontinuedl 213 Opgraling l•as•s.. JHLL g¥ less•0 Rentals paid under operating leases are charged to profil or loss on a straight line basis (werthe leaso term. Benefits recewed and receivable 85 an incentive to sign an operab'n9 lease are recognised on 8 straight line b8si$ over the lease lerrn. unless another systematic basis Is rèpresentalive ol the time pattern ol the lessee's benefit from the use ol the leased asset. 114 Intangibl• assets- wèbslte development Directly attributable website development costs Inwrred in the creation of thg website are inrtially recognised al cost afbd amortised over its expeaed useful life of 5 years. Aftèr rÉcognits'on, under the cost model. intangible assets are measured at tost less any accumulated arnortisation and any accumulated impairment losses. 215 Intallglblo assets- goodwlll Gotsdwill repsents the dilleren been amounts p8id for the cost of a business comtsnation ar the acquirer's interest in the fair value ol the group's Share ol the idenbfiable assets and liabilities of Ihe acquiree al the date ol acquisition. Subsequent to Inrtial reco9nilion, goodMII is measured al ltrss accumulated amortisation and a¢cJJmulated impairment losses. Gtsodwill is amortised on a straight line basis to the Consolidated Sl*ement of Financi81 Adivities over its u5efvl economic life of S years. 2.16 Valuatlon of Inveslments Investments in subsidiaries are measure¢ al ¢osl less aCcurnUlatè Impaiment in the Parent Ccmnpany's accounts. 2.17 T?nglblè flxodass•ts and deprèeiatlon Tangible fixèd assets under the cost model are staled al hi5torieal cost less accumulated deprèciallon and any accMu1ated impairment losses. Historical Cost Includes expenditure that is diiecuy attn"butable to bringing the asset to the Io(2tion and condition necessary for it to be capable of operating in the manner intended by management. However, capitslisalion 15 determined by what servic85 are provided in each location. lfvhere JHLL acts in a principal activity. fixed assets wll be capitalised. In certain in5tawes Whe leasehold irnprovemerils are reimbursed ultimately by MOFA and there is no economic b&nefit to JHLL and the Gioup. these assets are not capilalised on the Balan Sheet of JHLL and the Group. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated uselul lives, using the straight-line method. Short-(erm leasehold improvement straight line basis over the inth.al term to the expected lease end dale IOY• ung balance method Fixture and fittings The 8Ssets' residual values. useful lives and depreci3tion mèthods are reviewed. and adjusted prospectwely il appropriate, or if there is an indication of a significant change Sin the last reporting date. Gains and losses on disposals are determined by cornparing the proceeds with the tarrying amount and are cognised in profit or loss. The notes Dn pages 15 to 30 foThn part of these financial statements. Page 19
JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE Y&4R ENDED 31 MARCH 2025 ACCOUNTING POLICIES Icontinued 118 Stock Stocks are stated at thè lower ol cost and net realisable value. being th& estimated selling price less costs tt> complete and sell. Cost is based on the cost ol purchase on a first In, firstout basis. Work in pwress ond finished goods indude labour 8nd attributable overh¢ad$. At e8th Balance Sheet dale, stocks are assessed for impaim•nt. If stock is irnpairèd, the carrying amount is reduced to ils selling pnee less costs lo cornplete and sell. The irnpairmenl loss Is recognised irnmed181ely in profit or10s8. 219 Debtors Trade an¢S other debtors are recognised al the settlement amount 8ltèr any trade discount offered. Prep8yments aré valued at the amount prepaid net of any traye th¥counts du 2.20 Ca$h andeash oqulvalent Cash presents cash at bank 8nd in hand includes cash and short term highly liquid inveslments with a short msturity of three months or less from the date ol acqusrtion or opening olthe deposit or similar account. 221 Cr•dltors Short 18rm credilors are measured at the transacty'on pri¢¢. Other financial liabilities. induding bank loans, are measured initially at tsir value, net of transaction ¢osts, aThY are measured subsequently at amortised cost using the effedivè intérest method. 222 Provlslons Ilabllltl Provisions are made where an event has taken place that gives Ihe Group a legal OT consttuob.ve obligatson that probably requires 5etUement by a transfer oleconomic benefit. and a reliatrAe esb"m8te can be made of the arnount ol the obligation. Provisions are charged as an expense to profftor loss in the year that the Group becomes aware olthe obligatson, and are measured at the best estime at the Consolidated Slalernent ol Financial P05ib0n date oftheexpenditure required to settle the obligation, tsking into a¢x(xJnt rélevant risk5 and uncertsints"es. Wnen payments are eventually made, they are tharged to the provision ¢arrKo¢Y in thè Consoltdated Statement of Financial Position. 2.Z3 Flnan¢lal Instrum•nts The Group only èntèrs Into basi¢ financial instrument transathons that result in the recogr)ition of finanal assets and liabilities like trade and other debtors and eor$, loans from banks and othèr third part'es, loans lo related parties and invÈstmÈnls in ordinary shares. note$ on pages 15 to 30 fom) part ofthesè nan¢ial $tslemenls. P8ge 20
JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINVEDI FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES Icontinuedl 223 Financial instruments {conitrnupd) Debt instrurnents (other than those whdly repayable or receivable within one year), irlUding loans and oth•r ac(x)unts receivable and payable, are initially mèasuréd at present value or the future cash flows and subsequently at amortised cost Using the effeth've interest method. Debt instrumen15 th* are payable or receivable within one year. typically trade debtors and crèditors. a measured, Initially and subsequendy, at the undiscounled amount of the cash Dthei consideration expected lo be paid or received. However. if the arrangements of a short-lerm instrument t4$titUte a financing transaction, like the paymentofan out-right shcrt- tèrm loan that Is not 81 market rate, the finanaal asset or liability is measured, initially al the present value of fLrture cash fltsws discounted al a rnarkel rate of interest for a similar cjebt inslrurnent and subsequenuy at Èmortssed cost, unless it qLJalsfies as a loan frorn a director in the case of a small company, or a putAic benefit entity concessionary loan. Financial assets that are measured ai cost and amortised cost arè assessed at the end of each reporting year for obie¢live eviden of impabrment If objective evidence ¢1 impairment is found, an Impaiment loss is recognised in the Consolidated Ststsrnént ol Financial knliwits. For financial assets measured at amorti5ed cost, the impaiment loss is measured as the differencè belween Èn assevs carrylng amount and the présent value of e5limated cash flows discounted 81 tre asset's original elledive int¢rest rate. If a financial asset has a variable interest rate, the discount rale for measuring any impairment k)ss is the curreni effective Interest rate determineil under the contra¢t. For financial assets measuredat mst less impaimient. the impaiirnent loss Is measured as the difference beeen an asset's carrying amount and best est'mate of the recovei8ble amount. which is an approximation of the amount that the Group would receive for Ihe asset rf il were to be sold at thè ièporting dale. Financial assets 8nd liabilities are offset and the nèt amount reported In th6 Consolidated and Parent Company Balance Shsèt when there is an enforable right to sel off the recognised amounts and there is an intention to settle on a net basis or to iealise the asset and setue the liability sirnultaneously. 2.24 Judgements in applying 8ccountlngpoll¢le$ andk•y Sourc gf estimatè unc•rtaJYnly The weparation ol the finanaal siatements requires management to rnaka judgements, ests'mates arKI assumptions that affect the amounts reported for assets and liabilities at the Balance Sheet date and the amwnts reported lor revenues and expenses during the year. However, the naturè of estimation means the aduvj outcomes could differ fvom Ihose esbmates The followng judgements have the most significant effect on the amounts recognised in the finanaal statements.. Cwrylng value oflntanglblo •ss•ts The Group reviews the Gairying value of its intangible asset5, which comprise goodwll and website development. at each reportsng date to determine rf there Is any indication of impairment. Where an indication ol impairment is identified the Group estimates the recoverable amount of the asset. This requirès judgement by management with respect to certain external factors, including. but not lirnited. to technological and economic feasibility. and estimated economic life. See Ntstes 12 & 13 for the Garrying value of Ihe Group's Intangle assets. Canylng value ofsto¢k The Group reviews the carying value tsf its stock, al eath reporting date to determine If there is any IndtiOn of irnpairment. Vvhere an indication of impairrnent is identified the Group estimates the recoverable amount of the stock. This requires judgernent by magement with respect to certain external tactors. including conditions of stock to determine whether ary impairment provision is necessary. See Note 1 S IOT the carryin9 valug of the Group's stock. Th& notes on pagss 1510 30 fom part ofthese financial slalements. Page 21
JAPAN HOUSE LONDON TRUST NOTES TQ THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 224 Judgements in applylng accountlng pollcles andkey stwrces of•stimato une•rtalnty{continu•d) Dllapldation provision The Group has recognised a provision lor dilapidation costs rélating to its leased pr¢mises. The amount provided is based On a professional assessment of the expeded costs required to rèstore the property at the end of the lease term. This esb'mate Involvesjudgement in assessing Ihe condib.on olthe premises. expecteil remedial Works and the cost levels that will apply at th$ I"me the expenditu is incurred. Actual ¢osts may differ frorn the estimate as further information becomes available OT arcutllstances change. INCOME Group Income from tradlng acti¥iti*s Income fvom trading activities is piincipalty attributable to an agreement wlh the Japanese Ministry of Foréiw Affairs ('MOFA'I, rental income Irom concession agrèements executed wth restaurant and retail operators and sales in the Shop. All income ar¢e in the unit Kingdom. An analysis ot turnover by cla$s ot buslness Is as follovA'. 2025 2024 Rental income on cOnSsion agreements Japan House membership inGorne Income from arrangement wrth MOFA (Note 241 Other Income Income from 8ale5 in the Shop 1147,3701 234,151 7,7S1,884 343,440 1884 $87 10 066 692 124,001 256.805 8, 722,052 281.044 1,733277 11 117 179 During the year, MOFA detwmined that certain rental income on cOnSSIon agreements earned in prior years totalling £185,787 were to be repaid to them. Due tothis change in applicats.on olthe MOFA funding agreement occurring in the current year, this has been recognised in the current year within ttjmover, in line with the previous recognition of rental incom¢ on concession agreements. INTEREST RECEIVABLE Group As restaled (Not6 27) 2024 2025 other interest receNabk (Note 161 17,641 CHARITABLE ACTIVITIES Pargnt Company Unrestrlcted Funds 2025 Totsl Funds 2025 Total Funds 2024 Grants made Support costs- governan INote 81 91,160 9,882 101,042 91.160 9,882 101,042 94, 798 24,485 119.283 The notes on pages 15to 30 fomi part oflht$6 financial statenIS. Page 22
JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINVED} FOR THE YEAR ENDED 31 MARCH 2025 CHARITABLE ACTIVITIES {continued) Charitable donations were made lo thè following charitable rpients.. 2025 2024 The Japan Society Common Era. Inc Triangle Arts Trust London Contemporary Mu5r Festival Camden Arts Centre Calé Oto Delfina Foundation Japan House London's touring sampuru studio Vottaire The Victoria and Albert Mu3eum Univeisity of Oxford Van Gogh House London & Gallery C.l.C. Wysing Arts Centre Total Grants made 30.000 25,210 15.950 5,000 15,000 3.000 77,600 20. 130 12,568 2,OOQ 7,000 15,60Q 16,90Q 94,798 91,160 SUPPORT COSTS Parent Company Totsl Funds 2025 TolalFunds 2024 Bank charges Legal and professional related costs Audit fee Total INotÈ 51 1.384 23.575 24.485 9,8B2 ANALYSIS OF EXPENDITURE BY EXPENDITURE TYPE Group As rest8tgd (Note 27) 2024 2025 Other tradng activities 10.198,267 10,198,267 9,840,568 9,840,568 Charitable Activities (Note 51 Total Expgnditurg 101,042 10.299,309 719,283 9.959.851 othw trad'ng activities relate to costs of goods sold, office rent & rates. depreciation and amortisation charges, staff costs. gxhibrtk)n costs & other trading and ¢ompli8nce costs incurred by the Group and its subsidiarie5. The notes on pages 15 to 30 form part oflheseffin8n¢ial $tslemenls. Page 23
JAPAN HOUSE LONI)ON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEIR ENDED 31 W4RCH 2025 AUDITORS. REMUNERATION 2025 2(r24 Fee$ payatle to thè CharitaNe Compary's auditor and rts subsidiaries in respect of Audit-related assuran services 40 000 EMPLOYEES The average monthly number of employees, including the directors. during the yearwas as folbws. 2025 88 2024 89 Employees induding directors who have employment contracts Staff costs. Ijding key managernent personnel. were as folows.. 2025 2024 Wage$ and salaiies Social security costs Cost of defined contribution Khem8 INots 221 3.205,84S 288,127 3,070,456 267.759 98,989 3 377 204 3.569.414 Included above is the remuneration of£453,388 (2024.. £357, 167J for the Group's key management. No Trustees reNe any iemuneration during either reporting period. 10. INTEREST PAYABLE As rest8ted (Note 27) 2024 2025 Other interest payab 17,641 37.052 31052 The notes on pages 1510 30 fomi part of these financial slatem¢nl$. Page 24
JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONnNUEDI FOR THE YEAR ENDED 31 MARCH 2025 11. TAXATION Group Y••r •nded 31.03.2025 Group Y8arended 31.03.2024 as reslaled ¢ory)oratlon tax Cvrrent tax charge on proffits for the year Adjuslmenls in rèspect ol previous periods Total current tax 23,797 99,276J_ 75,479 251,485 3,065 254.550 Deferred tox a¥¥et Adjustments in respect ol prèvious periods Total deferrèd tax asset Tax Icredltllcharge on profil on ordlnary actlvltOg$ 76,479 254.55Q FactOTS affe¢tlng tsx charge forthe yèar The tax assessed lor the year is higher Ihan (2024.. lower thanj the standard rate of uJrporalh?n lax in the UK of 25°h (2024 25%) as set out below". As restatèd {Nofe 27) Group Year ended 31.03.2024 Group Yèar ended 31.03.2025 IL055yprofft on ordinary activitiès before ts 232,61 1142,089 ILossllproff( on ordinary activities Tnultiplied by staryjard rale of ¢Coration tax in the UK of 25Yo 12024.. 25Yo) Effects of.. Fixed asset differences Expenses not deductible for lay purpose8 Reversal ol provision not allowèd for tax Charitable donatnS not tax deductible Adjustment to lax Chargè in respect of previous period- CLwrenttax Extsss of capital allowance over depre¢i8b"on Losses carned back 15B,1541 285,522 1,661 25.409 (24.096) 29.915 3.065 (66,926) 26,763 22,7 199,2761 168,7251 99,123 Total tax l¢redltllcharge for the year 75,479 254.55Q Factors that moy affect futurg tax charges At 31 March 2025. Japan H.L. Limited had capital allowancès in excessol depreciation available tooffset against future profits of £567.000 (2Q24.' £633,oori). No deferred tax asset h8s been recognised in resCt ofthese due to the uncertainty ol suitable future profits against which the asset would be reGoveiable. The Trust is a tax exempt charity. The not£s on pag•s 15 10 30 form part ofthese finGI31 ¥totsmenl8. Page 25
JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 12. INTANGIBLE FIXED ASSETS Group Website developmgnl C¢)st Al 1 April 2024 Additions At 31 Marc* 2025 34,285 34,285 Amortisation M 1 April 2024 Charge foi th8 period At 31 March 2025 15,000 21,428 Ngt 81)ok Value At 31 March 2025 At 31 March 2Q24 13. INTANGIBLE FIXED ASSETS- GOODWILL Group During the period lo 31 Mard) 2020, thè Trust acquired 100/0 of Japan H.L. Lirnited Su]ting in goodwll of £501,889whi¢h was amorbsed on a 8traight line basis over its uséful economic life lo June 2024. The amortisalion is chargod to the Consolidated Ststement of Financial Activities. Cost At 1 April 2024 At 31 March 2025 Amortisatlon At 1 April 2024 Charge for the period At 31 Marth 2025 476,T16 25,093 501,689 Net Book Value Al 31 March 2025 At 31 M8rch 2024 The note5 on pages 15 to 30 form ptytl of these finanGo1 slatements. Page 26
JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THEYEAR ENDEO 31 MARCH 2025 14. TANGIBLE FIXED ASSETS Group Short4erm1gas•hold improvements Flxture and flttlngs Total Cost or valuation At 1 April 2024 Additions At 31 March 2025 8,739.970 363.097 118,235 481 332 9,103.067 118.235 9 221302 8,739 970 Depreclation At 1 April 2024 Charge lor the ye$T At 31 March 2025 ,739,970 147.836 103747 2S1 S83 8.887,806 103747 8,991.553 8 739 970 N•t book value At 31 March 202S At31 Mgreh 2024 21S261 215261 15. STOCK Group 2025 Paront Company 2025 2024 2024 Finished goods and goods for resale 281A04 281,404 274.015 274.075 16. DEBTORS Due after rnore than one year". Group Paront Company restated (Note 27) 2024 2025 2025 2024 Rent depo$f( (Nots 231 1,598.693 1,598,693 1587.052 1587.052 Rent deposit indudes interest receivable of £48,693 (2024.. £21,052) as confirmed by the landlord 81 the year end. The notes on pages 15 lo 30 form pari of these ffin8n¢ial ststements. Page 27
JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2025 16. DEBTORS ICONTINUEDI Due within gne year.. Group Parent Company 2025 2025 2024 2024 Trade debtors Other debtors Prepayments & Acuued incCe Corp)ration tax VAT repayable 140,418 1.323 804,497 61.693 15, 725 1,084,864 7.921 7,921 272.920 201,996 1,421,1S4 85,528 253,071 7,SQO,887 7,921 Total Debtors 3,019 847 3.081,933 7.921 17. CASH AND CASH EQUIVALENTS Group 2025 Parent Company 2025 2024 2024 Cash at bank 6.441,539 6.441,539 6,974.616 6.914,616 717,734 717,734 851, 167 851, 167 18. CREDITORS: AMOUNTS FALLING DVE WITHIN ONE YEAR Group 202S Pomnt Company 2025 2024 2024 Trade credrtors Corporation lax Other creditors Accruals Other taxation and social security Deferred Iorne VAT payable 303,916 23,492 1.890.237 97,267 86,848 251.485 2.287,348 73,628 159 89 18.267 50,905 69,039 959.51S 61,013 3.404.479 66,456 953,549 48,236 3.761,550 Other ueditors indude t1.857,37812024.. £2.249, 1331 due lo MOF 19. CREDITORS: AMOUNTS FALLING AFTER MORE THAN ONEYEAR Group Parent Company As reslated (Note 27) 2024 2025 2025 2024 other creditors (Note 231 1.598,693 1598,693 1,581,052 1,581.052 Other credrtor5 reflect the value ol the rental deposit, including interest, repayable to MOFA at the lease end. The notes ¢n pagès 15 to 30 fvmi partof these financial stalèmonls. Page 28
JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEO} FOR THEYEAR ENDED 31 MARCH 202S 20. FINANCIAL INSTRUMENTS Group Parent Company As restofed 2024 2025 2025 2024 Flnaf7¢ial ass•ts Financial assets m88surj at fair value through income and expenditure Financial assets measured at amortised cost 6A41,639 6.974,816 717,734 851, 767 1,408,056 7.849,$95 1,658,469 8,573,085 7,921 725,655 7,921 859.088 Flnancial liablllt5•s Financial liabilities measured al amortised cost 3,438,610 4.022,876 18.515 50,905 Financial 85$9ts measured al fair value through income and expenditure compiise ol $h aThY cash equivalents. Financial assets measured al am<)rtised eost comprise of trade debtors, rent deposits and other debtors. Financial liabilities measured at amortised cost comprise ol trade creditors, other cre49r$ and accruals. 21. PROVISIONS Group PTovi¥ion for dllapldatSon Al 1 April 2024 Credited to Consolidated Statement ol Flnancial Activth"es At 31 Mar¢h 2023 862,214 48,239 803,975 As partof its property leasing arrangements, the Group's subsidiary, Japan H.L. Limited I'JHLL'I has an obligatson Ip ieturn some prop8rties to their Dnginal conditson Iwhen JHLL conducted significant leasehold irnprovementsl or repair damages which oc¢ur during the life of th8 lease. Based on a formal dllapidaln ptsrt dated 12 June 2023, the directois have recorded a dilapidation provision. The provision 15 expected to be uts'lised in March 2029 (Note 231. The directcKs consider the provision in tAace at the year-end to be materially fairfy stated PENSION COMMITMENTS JHLL. the 11)0% owned subsidiaiy, operates a defined Contribution pènsion scheme. The pension (x)sts charge foi the year to 31 March 2025 represents Contributions payable by JHLL to the scherne and amounted to £75,442 f2024.. £98.989) INote 91. Contributions totalling £26,881 (2024.. £26,240) were payable lo the scheme at the feporting date and are Included in creditors. The notes on pages 15 to 30 ft>mi part of these financral slattmtnts. Page 29
JAPAN HOUSE LONDON TRUST NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THEYEAR ENDED 31 MARCH 2025 23. COMMITMENTS UNDER OPERATING LEASES Following the extension ol the le35e te March 2029 entered Into In Octoter 2024, at 31 March 2025 the Group had future minimum lease payrnents due undei nOn-¢anlIJle oper8kn.ng leases foreach of thè following periods.. Parent Company 2025 Group 2025 2024 2024 Ngt later than 1 year Later than 1 year bLrt not later than 5 yoars 1,764.900 5,294,701 7,059,601 7,706.371 3,412,741 5,119,112 JHLL paid a deposit of £1,550,000 to the landk)rd on 1 April 2017 in aCdanCe wth the terms ol the lease. Its Current value Is Induded in Note 16_ 24. RELATED PARTY TRANSACTIONS Nc Trustees received any remunef81ion forthe wrrent tsr wor period. The Trust and the Group are exempt from disdosing material ralatsd party transactitsris with companies that are wholly owned within the Group. During the yaar Group received £7.751,884 (2024.. £8,722,052) as income from MOFA. The Group owed £3.456,071 (2024. £3,830,185 as re8lat&d) 5n¢lLwJing rent depos( to MOFA at the year end INote 18 & Note 191. SUBSIDIARIES Comyny Name Country of incorporation Class of shares Holdings Ag9regat8 of Profivllossl for Share capital the year ended 31 and reserv Mareh 2025 Japan H.L. UK (England & Ordinary Lirnited. parent Walès) of Japan H.L. Enterprises Lirniled lo1 3,113,089 1102.1701 UK (England & Ordinary Wa1esl 1cMY/o 358,039 71,167 26. ULTIMATE CONTROLLING PARTY The ultimate controlling paty are th* Truslees. 27. PRIOR YEAR ADJUSTMENT During the ¢urrenl year the dire¢tors became aware Ihat the dep0511 of £1,550,000 paid to the landlord on 1 April 2017 attracted interest. As a result, the previous discounting of the rentsl deposit and the corresponding amountowed to MOFAto present valuewas no longer deemed appropriate. As a result ofthis determination, a prior year adjustment is nece$$ary to restate the rental deposit debtor to its current value of £1.581.052, indusive of interest eamed, from £1.327.482, as at 31 Marth 2024 and adjust the ¢orresponding amounl due to MOFA accordingly. from £1,301,410, as at 31 March 2024.. The net impact of thest adjustments results in the profil for the year endéd 31 March 2024 being reduced by £26,072. The notes on pa9e$ 15 te 30 p8ri these financial $laièm8nts. Page 30