R￿stered 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 ASsO￿ation 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 a￿ve,. 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 Ra￿InSOn & 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 lI￿LuDING 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 Gu￿Ur81 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, aCqUi￿d 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 Lor￿On 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 operat￿n 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 v￿nerable 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 geop011￿cal 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 r￿t 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&sl818mè. 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 fina￿￿91 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 re￿1vable 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 Tll￿r 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, 0￿￿dIng aim 15.. 81 lo athIa￿ the cutture (both tradrtional and medern), Ir￿lLUtIonS. 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 fin*Jelal st*tom•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, char￿e8 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 statem￿t$ 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 ge0polit￿al 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 Cate￿ries, 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 ReV￿u& 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 tranSact￿In tan be measured rella￿y. 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 follo￿n9 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 Corn￿ete 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 w￿n 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 agg￿gate 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 pr￿eedS 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 defer￿d tax lor the subsidiaries trading company. Tax is recognised in profit or loss ex￿p1 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 dIfferen￿S 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 eX￿pt 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 be￿een 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 tranS￿l0n. 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 fore￿Th 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 rep￿sents the dilleren￿ be￿en 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 acc￿Mu1ated 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• ￿u￿ng 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 estim*e 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 finan￿al assets and liabilities like trade and other debtors and ￿e￿￿or$, 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), ir￿lUding 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 be￿een 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 enfor￿able 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 Intangl￿e assets. Canylng value ofsto¢k The Group reviews the carying value tsf its stock, al eath reporting date to determine If there is any Ind￿tiOn of irnpairment. Vvhere an indication of impairrnent is identified the Group estimates the recoverable amount of the stock. This requires judgernent by m￿agement 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 cOn￿Ssion 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 cOn￿SSIon 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 state￿￿nIS. 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 r￿pients.. 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. I￿￿jding 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 re￿Ne￿ 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 ¢C￿oration 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 donat￿nS 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 res￿Ct 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 fin￿GI31 ¥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 incC￿e 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 I￿orne 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 m88sur￿j 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 cre4￿9r$ 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 dllapidal￿n ￿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-¢an￿lI*Jle 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 aC￿danCe 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 lo￿1￿ 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