![]() # Schroder Japan Trust plc ### Annual Report and Financial Statements #### for the year ended 31 July 2026 ![]() ## Investment objective ## Why invest in the Company? #### A supportive macroeconomic environment #### Japan’s economy is showing positive momentum, with rising wages helping to support consumer spending and broader economic growth. At the same time, improvements in corporate governance are encouraging companies to focus more on #### shareholder value, creating attractive opportunities for investors. #### A disciplined and differentiated approach #### Portfolio Manager Masaki #### Taketsume takes a selective approach, looking for quality #### Japanese companies whose long-term potential is not yet fully recognised by the market. #### Alongside the opportunity for capital growth, the Company aims to provide investors with a regular #### income through an annual dividend target of 4% of net asset value. #### The time for active managers to shine In today’s market, careful stock selection can make a real difference. The Company invests in #### a focused portfolio of companies that the manager believes are undervalued but have strong #### prospects for future growth and improving profitability, offering the potential to deliver attractive returns over time. #### Please see page 24 for the investment policy. The principal investment objective of Schroder Japan Trust plc (the #### “Company”) is to achieve capital growth from an actively managed portfolio principally comprising securities listed on the Japanese stock markets, with the aim of achieving returns in excess of the #### Tokyo Stock Price Index Total Return in sterling over the longer term. #### Scan this QR code on your smartphone camera to sign-up to receive regular updates on Schroder Japan Trust plc For details on the Company’s Investment Policy please see the KID. The Investment Policy should be read in conjunction with the KID before investing; these are also available on our Schroders website. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise. Performance data does not take into account any commissions and costs, if any, charged when units or shares of any fund, as applicable, are issued and redeemed. Relevant risks as associated with this Company are shown on page 82 and should be carefully considered before making any investment. ![]() Section 1: Overview 3 Performance Summary 4 Ten-Year Financial Record 5 Chair’s Statement Section 2: Investment Manager’s Review 8 Investment Managers’ Report 14 Top Ten Holdings 16 Investment Portfolio 18 Investment Approach and Process Section 3: Strategic Report 23 The Company 27 Stakeholder Engagement – Section 172 Report 31 Risk Report 34 Conclusion Section 4: Governance 36 Board of Directors 38 Directors’ Report 41 Audit and Risk Committee Report 44 Management Engagement Committee Report 46 Nomination Committee Report 48 Directors’ Remuneration Report 51 Statement of Directors’ Responsibilities Section 5: Financial Statements 53 Independent Auditor’s Report 59 Statement of Comprehensive Income 59 Statement of Changes in Equity 60 Statement of Financial Position 61 Notes to the Financial Statements Section 6: Other Information (Unaudited) 74 Annual General Meeting – Recommendations 75 Notice of Annual General Meeting 76 Explanatory Notes to the Notice of Meeting 78 De nitions of Terms and Alternative Performance Measures 80 Information about the Company 82 Risk Disclosures This is not a sustainable product for the purposes of the Financial Conduct Authority (FCA) rules. References to the consideration of sustainability factors and environmental, social and governance (ESG) integration should not be construed as a representation that the Company seeks to achieve any particular sustainability outcome. Tokyo skyline, featuring Tokyo Tower and Mount Fuji in the distance. ## Contents Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() #### Section 1: Overview ## Overview #### Performance Summary 3 #### Ten-Year Financial Record 4 #### Chair’s Statement 5 Chureito Pagoda with Mount Fuji 2 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() ## Performance Summary At 31 July 2026 Share price total return 1 +49.0% Year ended 2025: +5.6% Benchmark 2 +29.3% Year ended 2025: +4.8% Net Asset Value (NAV) per share total return 1 +41.2% Year ended 2025: +6.8% Share price discount to NAV per share 1 8.3% Year ended 2025: 12.9% Revenue return per share 6.79p Year ended 2025: 6.91p Share price 373.00p Year ended 2025: 260.00p Ongoing charges 1 0.89% Year ended 2025: 0.92% Net revenue return after taxation £7.78m Year ended 2025: £8.02m Gearing 1,3 11.9% Year ended 2025: 13.4% #### Section 1: Overview 1 Some of the nancial measures below are classi ed as Alternative Performance Measures, as de ned by the European Securities and Markets Authority and are indicated with an asterisk (\*). De nitions of these performance measures, and other terms used in this report, are given on pages 78 and 79, together with supporting calculations where appropriate. 2 Now named Tokyo Stock Price Index Total Return, previously known as TSE First Section Total Return Index (the “Benchmark”). 3 Gearing represents the percentage by which a portfolio’s market exposure exceeds its net assets, expressed as a percentage of net assets. 3 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() NAV total return Share price total return Benchmark 100 150 200 250 300 350 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 4 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ## Ten-Year Financial Record At 31 July 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total assets (£’000) 1 310,493 333,130 318,944 279,365 323,180 318,321 336,950 365,019 350,305 469,002 Shareholders’ funds (£’000) 269,304 292,268 273,812 236,128 283,859 281,429 302,460 350,888 344,577 462,667 NAV per share (pence) 2 215.43 233.80 219.04 189.24 232.40 230.68 252.25 298.88 298.35 406.76 Share price (pence) 195.00 212.00 190.50 161.50 210.00 202.00 234.00 266.00 260.00 373.00 Share price discount to NAV per share (%) 2 9.5 9.3 13.0 14.7 9.6 12.4 7.2 11.0 12.9 8.3 Gearing (%) 2, 3 11.2 11.7 12.3 13.3 10.4 11.1 9.5 14.8 13.4 11.9 For the year ended 31 July 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Net revenue return after taxation (£’000) 4,522 5,106 5,994 6,252 5,401 6,073 6,563 6,565 8,020 7,775 Revenue return per share (pence) 3.62 4.08 4.79 5.00 4.38 4.97 5.41 5.53 6.91 6.79 Dividends per share (pence) 3.50 4.00 4.70 4.90 4.30 4.90 5.40 10.81 11.43 13.34 Ongoing Charges (%) 2, 4 1.00 1.00 1.03 0.92 0.89 0.92 0.94 0.95 0.92 0.89 Performance 5 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 NAV total return (%) 2 20.4 10.2 -4.6 -11.7 25.7 1.0 11.7 21.0 6.8 41.2 Share price total return (%) 2 22.4 10.6 -8.4 -13.1 33.7 -2.0 18.7 16.1 5.6 49.0 Benchmark (%) 5,6 16.8 9.7 1.0 -6.1 18.0 -1.9 9.4 16.4 4.8 29.3 1 Net assets plus borrowings used for investment purposes. 2 Details of the calculation are set out in the Alternative Performance Measures section of the report. 3 Prior to 2024 the gearing was calculated as borrowings less cash, expressed as a percentage of net assets. Since the introduction of contracts for di erence in 2024, the calculation has been based on total portfolio exposure expressed as a percentage of net assets. 4 Ongoing charges represents the management fee and all other operating expenses excluding nance costs and transaction costs, expressed as a percentage of the average daily net asset values during the year. 5 Source: Morningstar/Thomson Reuters. 6 The Company’s Benchmark is the TOPIX Total Return Index. De nitions of terms and performance measures are given on pages 78 and 79. 10 Year NAV, share price and Benchmark total returns as at 31 July each year Source: Morningstar/Thomson Reuters. Rebased to 100 at 31 July 2016 ![]() Performance I am pleased to report that for the year under review, the Company’s share price produced a total return of 49.0%. The Company’s net asset value (NAV) increased by 41.2%, outperforming its Benchmark (TOPIX Total Return Index) which rose by 29.3%, while the average discount to NAV during the period was 8.3%, compared to an average of 11.7% during the year to 31 July 2025. Performance was driven by a combination of favourable market conditions and the Investment Manager’s astute stock selection. Japan’s equity market bene ted from continued corporate governance reform, a return to sustained wage growth and in ation, and an improving political backdrop following the formation of a new coalition government under Prime Minister Takaichi. Against this backdrop, the portfolio’s focus on undervalued, well- positioned businesses – particularly among smaller and mid-sized companies, where valuation anomalies remain more pronounced – continued to deliver strong returns. Further detail on the drivers of performance and the portfolio’s positioning can be found in the Investment Manager’s Review starting on page 8. Enhanced dividend policy Following the adoption of an enhanced dividend policy, the Company has over the last year paid out 4% of its average NAV. Dividends are now declared quarterly based on the trailing 12-month average NAV and the Board will continue with this approach. The shares of the Company had, as at 31 July 2026, a dividend yield of 3.25% which was signi cantly higher than any other Japanese investment trust. Discount management The Company’s discount at the start of the period was 12.8% and ended at 8.3%. The Company’s three-year average discount was 10.0%, and the one-year average discount was 8.3% during that period. The Board exercised its buy-back authority over the period to acquire 1,750,001 shares to be held in treasury, at an average discount of 10.7%. Conditional tender offer The Company announced a new conditional tender o er mechanism in June 2024. Under this arrangement, if the Investment Manager fails to deliver at least Benchmark performance over the ve years from 31 July 2024, a tender o er for 25% of issued share capital at NAV less costs will be proposed. The Investment Manager outperformed the Benchmark by 20.8% during the rst two years of the assessment period. Gearing Throughout the period, the Investment Manager actively geared the portfolio by using contracts for di erence (“CFDs”). The gearing level was 13.4% at the start of the period and ended at 11.9%. The Investment Manager typically targets a gearing range of between 10% and 17.5%. Gearing had a positive e ect on performance during the year. The Company’s gearing continues to operate within its pre-agreed limit of 25% of net asset value. Board changes Angus Macpherson stepped down from the Board in July this year. Following a review of the Board’s balance of skills and experience, the Board has decided to commence a search for an additional director. An independent external search consultancy have been appointed to facilitate the recruitment process, with the aim of identifying a suitable candidate before the end of the year. Full biographical details of Board members can be found on pages 36 and 37. Philip Kay Chair ## Chair’s Statement #### For the year under review, the Company’s share price produced a total return of 49.0%. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 5 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Keeping in touch For regular news about the trust, shareholders are encouraged to sign up to receive communications either on the Company’s webpage or by scanning the QR code on this page. Shareholders are also encouraged to follow the Manager’s Investment Trust updates via LinkedIn: https://uk.linkedin.com/company/schroders-investment- trusts-uk Company awards I am pleased to con rm that the Company has recently been awarded Boring Money’s Investment Trust Rated badge, recognising trusts that combine strong investment credentials with clear and e ective communication for retail investors. The Company has also been shortlisted for the following upcoming awards: Investment Week’s Investment Company of the Year Awards – nominated in the Single Country (Developed Markets) category; and Citywire’s Investment Trust Awards – nominated in the Japanese Equities category. Schroders combination with Nuveen On 22 September 2026, Schroders plc announced that all antitrust and regulatory approval conditions relating to Nuveen’s recommended acquisition of Schroders had been satis ed or waived. The transaction became e ective on 1 October 2026 following satisfaction of the remaining conditions, including court sanction and associated procedural steps. Further details are available on the Schroders website: https://www.schroders.com/en/global/indivi dual/nuveeno er/ AGM and shareholder engagement The Company’s Annual General Meeting (AGM) will be held slightly earlier this year and is scheduled for Friday, 6 November 2026 at 1.00pm at 1 London Wall Place, London EC2Y 5AU. We invite shareholders to attend the Company’s AGM in person. This year, alongside the Investment Manager’s presentation, Non-Executive Director and Bloomberg’s UK Money Editor-at-large Merryn Somerset Webb will interview Masaki Taketsume in person in a lively discussion covering topics such as corporate governance, active value investing and the changing dynamics of the Japanese macroeconomic landscape. Sake and light refreshments will be served after the meeting, providing an opportunity to continue the conversation with fellow shareholders and the Company’s directors and representatives. Shareholders wishing to follow the AGM proceedings but choosing not to attend in person, will be able to view proceedings live and ask questions (but not vote) through conferencing software. Details on how to register, together with access details, will be available shortly on the Company’s website: www.schroders.com/japantrust, or by contacting the Company Secretary at: amcompanysecretary@schroders.com For shareholders who are unable to attend the AGM or those that are joining electronically, it is strongly encouraged to submit their proxy votes in advance of the meeting, so they are registered and recorded at the AGM. Proxy votes can be lodged in advance of the AGM either by post or electronically. Detailed instructions are included in the Notes to the Notice of Annual General Meeting on pages 76 and 77. Ahead of the AGM there will also be a separate webinar on Tuesday, 6 October 2026 and shareholders are encouraged to sign up on the Company’s website to hear from the Investment Manager and ask questions. Shareholders can also sign up using this link: https://www.schroders.events/SJG26 Outlook Although the strong rise in Japanese equities over the past year might suggest that valuations are no longer as compelling as they once were, we continue to believe that the structural case for investing in Japan remains robust. Japan introduced a revised Corporate Governance Code in July 2026 that places greater emphasis on helping companies create sustainable long-term value for shareholders, rather than simply meeting regulatory requirements. A key focus is ensuring that companies use their capital more e ectively, which can support higher returns for investors. At the same time, a more sustainable cycle of wage growth and stronger domestic demand is helping to support economic activity in Japan. Together, these trends should provide a positive backdrop for corporate earnings, dividend growth and shareholder returns over the coming years. Masaki Taketsume, supported by his team of experienced research analysts (who, like him, are based in Tokyo), has now managed the Company’s portfolio for seven years and has outperformed the Company’s Benchmark by an impressive 47.7% over that period. The current environment is particularly well suited to active stock pickers, and, given Masaki’s disciplined and proven approach, we are con dent in the opportunity that lies ahead for the Company’s shareholders. Philip Kay Chair 5 October 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 6 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() #### Section 2: Investment Manager’s Review ## Section 2: Investment Manager’s Review #### Investment Manager’s Report 8 #### Top Ten Holdings 14 #### Investment Portfolio 16 #### Investment Approach and Process 18 Nonferrous metals specialist JX Advanced Metals was a notable contributor to portfolio performance. The company’s primary focus is on high-tech consumable electronic materials including semiconductor sputtering targets, compound semiconductor wafers and rolled copper foil. 7 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Overview The Japanese stock market rose strongly during the period under review, reaching all-time highs before experiencing a late-period rotation away from some of the technology stocks that had led the advance. Returns for UK investors were reduced by yen weakness but remained substantial in sterling terms. For the nancial year to 31 July 2026, the Company’s net asset value per share total return increased by 41.2%, while its Benchmark, the TOPIX Total Return Index, rose by 29.3%. Over three years, the Company has now returned 23.1% on an annualised basis, which compares favourably to the 16.4% return from the index. Recent performance drivers Japanese equities advanced strongly over the year, although the path was volatile. Softer US economic data and expectations of Federal Reserve (Fed) interest rate cuts supported global risk appetite, while Japan’s economy continued to grow and in ation remained positive. Corporate earnings were resilient despite tari uncertainty, helped by pricing power and cost control. Corporate governance reform also remained an important support, with share buybacks and dividends at high levels and management teams continuing to place increasing emphasis on return on equity (ROE), capital allocation, the unwinding of cross-shareholdings and business portfolio rationalisation. Domestic political developments also added momentum. Prime Minister Ishiba’s resignation in September 2025 was followed by Sanae Takaichi’s election as leader of the Liberal Democratic Party (LDP) and appointment as prime minister the following month, at the head of a new LDP-Japan Innovation Party coalition. Markets viewed this positively, with greater political stability and an increased likelihood of policies focused on defence, digitalisation and growth investment. The LDP’s decisive election victory in February 2026 reinforced these expectations. Meanwhile, the Bank of Japan (BOJ) continued to normalise monetary policy, leading to higher domestic bond yields, which were generally supportive for nancial companies. The advance was interrupted in March, when con ict involving the US, Israel and Iran drove oil prices higher and raised stag ation fears, but equities quickly rebounded as cease re hopes grew. Value stocks outperformed growth stocks over much of the period, smaller companies provided a modest tailwind, and gearing contributed positively alongside stock selection. Generative AI remained a key market theme, bene ting companies linked to AI data-centre investment, including semiconductor equipment, advanced materials, IC package substrates and optical components. However, as investors became more concerned about returns on large-scale AI spending and elevated valuations, the broader market rally became increasingly concentrated in a relatively small number of leading AI-related stocks, while concerns over disruption weighed on software and IT services. We maintained exposure through companies where we believe competitive advantages and operating leverage remain underappreciated. For example, Ibiden, a leading manufacturer of IC package substrates – the specialised materials that connect a chip to its circuit board – performed strongly as the market increasingly recognised its dominant position in substrates for the advanced processing chips used in AI data centres. Meanwhile, JX Advanced Metals also performed strongly, re ecting growing acknowledgement of its dominant market share in certain high-end semiconductor materials used in AI-related applications, including optical components and advanced ICs. Rigaku contributed positively as demand for its semiconductor-related X-ray measurement technologies increased, further supported by a strategic alliance with Onto Innovation. Masaki Taketsume Portfolio Manager #### Over three years, the Company has now returned 23.1% on an annualised #### basis, which compares favourably to the 16.4% return from the index. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any nancial instrument/securities or adopt any investment strategy. ## Investment Manager’s Report #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 8 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Japan’s continued transition from de ation to in ation, supported by a recovery in economic growth and government policy, also created a more favourable environment for domestic industries facing supply constraints. In areas where labour shortages have tightened supply-demand conditions, companies with relatively strong supply capacity have been able to raise prices, gain market share and improve margins. Infroneer, a general construction company, bene ted from this dynamic through improved pricing alongside strong construction orders, which led to solid earnings growth and improved shareholder returns. Corporate reform remained an important stock-speci c driver. The market generally rewarded companies for improving capital allocation, reducing exposure to non-core assets and increasing shareholder distributions. For example, Rohm, a mid-cap semiconductor company, showed a strong share price recovery and contributed positively to performance, as management’s e orts to improve capital discipline and reduce costs aligned with a cyclical rebound in demand. This reinforces our conviction that corporate governance reforms are now broadening well beyond large cap stocks. By contrast, concerns that generative AI could weaken existing business models a ected several holdings. For example, IT consulting company Nomura Research Institute and media business LY Corporation saw valuation pressure despite stable near-term earnings. In contrast, where AI-related disruption appears to be having a tangible impact on operations, we have acted accordingly, selling WingArc1st due to concerns that parts of its business intelligence software o ering are vulnerable to AI- driven substitution. Meanwhile, Asahi Group Holdings, Japan’s largest brewer, detracted from performance after a cyberattack disrupted operations and increased near-term uncertainty. NOF, a IBIDEN was a signi cant performer during the year. The company manufactures IC package substrates – the specialised high-density circuit boards that connect semiconductor chips electrically and mechanically to printed circuit boards (PCBs). The photograph shows the increase in size of IC package substrates used in desktop PCs (left) to those in modern data centres (right). Photo courtesy of IBIDEN Co., Ltd. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any nancial instrument/securities or adopt any investment strategy. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 9 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Top 5 contributors and detractors 12 months to 31 July 2026 Portfolio Benchmark Portfolio Benchmark Total Top 5 contributors weight weight return return effect IBIDEN 1.9% 0.2% 375% 381% 3.2% Fujikura 2.8% 0.6% 124% 126% 2.7% JX Advanced Metals Corp 1.7% 0.2% 295% 299% 2.3% Nintendo 0.0% 1.3% 0% –43% 1.4% Rigaku Holdings 1.3% 0.0% 150% 151% 1.2% Portfolio Benchmark Portfolio Benchmark Total Top 5 detractors weight weight return return effect Advantest 0.0% 1.4% 0% 192% –1.3% Mitsubishi UFJ Financial Group 0.0% 3.4% 0% 62% –1.1% Asahi Group Holdings 1.9% 0.2% –17% –17% –1.0% Murata Manufacturing 0.0% 0.9% 0% 210% –1.0% LY Corp 1.1% 0.1% –24% –24% –0.9% #### We continue to find a broad range of undervalued opportunities, many of which have credible paths to better returns through management action. These market misperception stocks remain the largest category in the portfolio, #### accounting for approximately #### 40% of assets. specialty chemicals business, also underperformed after earnings fell short of expectations due to lower demand for the high-purity raw materials it supplies for advanced drug-delivery systems. In both cases, we judged the weakness to be temporary and retained the holdings. Our lack of exposure to several large-cap AI and semiconductor businesses also detracted from performance during the stock-market rally’s most concentrated phases. For example, Advantest (semiconductor test equipment), SoftBank Group (telecoms/investment conglomerate), Tokyo Electron (semiconductor equipment) and Murata Manufacturing (electronic components) all rose as investors favoured clear AI bene ciaries. We continue to prefer companies o ering a better balance between long- term growth and attractive valuation. Portfolio strategy We continue to nd a broad range of undervalued opportunities, many of which have credible paths to better returns through management action. These are typically classi ed within the portfolio as “market misperception” stocks – this remains our largest investment category, accounting for approximately 40% of assets, with companies such as the industrial and technology business Hitachi, the specialty chemicals company Asahi Kasei and the postal and nancial services group Japan Post, bene ting from sustainable improvements in earnings or capital e ciency that are not yet fully re ected in valuations. Asahi Kasei is a good example. More disciplined capital allocation and business portfolio management have strengthened its competitive positions in specialty pharmaceuticals, medical devices and niche semiconductor materials, but the market continues to price the shares as a generic, diversi ed chemicals company. We believe that characterisation is now out of date. These businesses should support relatively stable and higher-quality earnings growth in the years ahead, which is not yet adequately re ected in the valuation. Almost 30% of the portfolio is invested in “market oversights” stocks, including the component manufacturers Hirose Electric, Niterra and Kohoku Kogyo. These are highly competitive businesses whose strengths can be overlooked because they are smaller than global peers or operate in specialist niches. Hirose Electric supplies high-performance connectors – the components that link circuit boards, cables and devices together – along with test interface products used to check chips and equipment during manufacturing. We expect the company’s earnings outlook to improve as industrial machinery and semiconductor equipment demand recovers, while recent M&A (merger and acquisition) activity expands its growth opportunities. The company should also bene t from price increases, a stabilisation in gold and other material costs and rising demand for AI-related products such as probe pins – ne metal contacts used to test chips before they are packaged and shipped. In our view, these drivers are not yet adequately re ected in its valuation. Around 10% of the portfolio is in “short-term overreaction” stocks, including HR and recruitment platform Recruit, video games developer Capcom and food packaging business FP Corp. These companies have strong franchises and structural growth opportunities, but their shares have been marked down because of temporary concerns. Capcom owns globally recognised games franchises such as Resident Evil and Monster Hunter. Its repeat-sales model and the expansion of its PC user base in emerging markets Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any nancial instrument/securities or adopt any investment strategy. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 10 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() should support steady growth. We initiated a position after a weak reception for the latest Monster Hunter title removed its usual valuation premium, which we believe can be reinstated as remedial measures support sales and new titles help to diversify earnings. The balance of the portfolio is invested in what we consider to be best-in-class operators, including the megabank Sumitomo Mitsui Financial Group, diversi ed nancial services provider Orix and the automotive business Toyota Motor. These companies combine strong competitive positions with disciplined management and attractive valuations. From a sector perspective, this positioning results in a bias towards Services, Chemicals, Construction and Information & Communication. As is typical, the portfolio retains a tilt towards value stocks and is well-exposed to small and mid- sized companies, where research coverage is thinner and valuation anomalies are more frequent. At year end, the portfolio held 66 companies and net gearing was 11.9%. Portfolio activity During the year, we initiated positions in Capcom, Yokogawa Electric (industrial automation and measurement), THK (precision motion components), PayPay (mobile payments), Asahi Kasei, Hirose Electric and Raiznext (plant engineering and maintenance). Yokogawa Electric and Asahi Kasei were added as market misperception opportunities. At Yokogawa Electric, we expect revenue growth to accelerate as global investment in gas infrastructure increases and higher- margin services become a larger part of the business mix. At Asahi Kasei, more disciplined capital allocation and portfolio management should support steady earnings growth and a re-rating as the market recognises the quality of its healthcare and specialty materials businesses. Video game giant Capcom was a new addition to the portfolio during the year. Since inception, the company has published more than 100 individual video game titles which have each surpassed sales of more than a million units. Capcom’s largest franchises include Street Fighter, with all- time sales of over 60 million; Monster Hunter (pictured left), with sales of more than 130 million; and Resident Evil, which has sold more than 230 million units since the rst entry in the series was released in 1996. Photo © and courtesy of CAPCOM CO., LTD. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any nancial instrument/securities or adopt any investment strategy. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 11 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() We also participated in the PayPay initial public o ering as a market oversight opportunity. Its leading position in QR-code payments creates network e ects that should support user growth, higher spend per customer and improving pro tability through scale. More recently, we added Hirose Electric and Raiznext. We expect Hirose to bene t from recovering end markets, margin improvement and expanding AI-related test applications, while Raiznext should bene t from better price pass-through, re nery upgrading work and an attractive dividend yield. In terms of disposals, we sold TPR (auto parts), Tazmo (semiconductor equipment), Toyota Industries (forklifts and auto parts), Kuraray (specialty chemicals), WingArc1st and Miura (industrial boilers). The reasons varied – in some cases, industry uncertainty or weaker earnings reduced our con dence in the original thesis, in others, expected catalysts had not developed as anticipated. Toyota Industries was sold following a bid approach from Toyota Fudosan, with its shares trading above the proposed takeover price amid pressure from activist investors for a better o er. Meanwhile, the position in Miura was exited as di culties integrating the acquired Cleaver-Brooks boiler services business led to repeated downgrades. We used the proceeds to build positions in opportunities where the balance of valuation, earnings visibility and company- speci c improvement look more attractive. Outlook We continue to believe that the Japanese equity market o ers long-term investors one of the most attractive opportunities available globally. The strong rise over the past year means that headline valuations are no longer as appealing as they were, and near-term returns are likely to be more dependent on earnings growth than on further broad- based multiple expansion. Even so, several developments unique to Japan should continue to support corporate pro tability, capital e ciency and shareholder returns. Cables and materials specialist Fujikura was another signi cant contributor to performance. As well as in telecommunications, the company’s technologies are used by electronics manufacturers, railways and mass transit systems, the automotive and medical industries, optics production, and research institutes worldwide. The UK’s prototype fusion energy plant being developed under the government’s UK Fusion Energy programme will use Fujikura’s high-temperature superconductor wire in the reactor’s powerful magnetic coils. Photo © Evgeniy Bazurov, Dreamstime.com. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any nancial instrument/securities or adopt any investment strategy. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 12 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Japan’s domestic economy also continues to show signs of structural improvement. Positive inflation, rising wages and #### persistent labour shortages are increasingly encouraging companies to raise prices, invest in productivity and improve #### operational efficiency. At the heart of the investment case is the continued deepening of corporate governance reform. The emphasis has moved beyond higher dividends and share buybacks towards more fundamental changes in capital allocation and business structure. Companies are unwinding cross- shareholdings, consolidating listed subsidiaries, disposing of non-core assets and investing more selectively in businesses with attractive returns. These actions should support higher ROE and a more e cient use of capital across an increasingly broad range of companies, including many smaller businesses that remain under-researched. Japan’s domestic economy also continues to show signs of structural improvement. Positive in ation, rising wages and persistent labour shortages are increasingly encouraging companies to raise prices, invest in productivity and improve operational e ciency. Business investment remains robust, and the Takaichi administration’s focus on public-private investment, economic security and support for growth industries should provide additional momentum. A more durable cycle of wage growth, consumption and investment would represent a signi cant change from the de ationary environment that dominated the previous three decades. Therefore, over the medium- to long-term, we believe that improvements in ROE and e orts to raise Japan’s potential growth rate, supported by favourable policy measures, are likely to contribute to equity valuation expansion, leading to solid equity market return combined with corporate earnings growth. More globally, the Fed has scope to support the US economy through lower interest rates, and resilient demand in the US and other major markets would help Japanese corporate earnings. There are, however, important risks. Higher food, energy and other living costs remain a burden for households, while the scale and funding of more expansionary scal policies will be closely scrutinised by bond and currency markets. The sharp increase in long-term interest rates during the period highlighted the importance of maintaining con dence in scal discipline. A policy mix that is perceived as insu ciently credible could create volatility across Japanese equities, government bonds and the yen. However, while both short- and long-term interest rates in Japan have risen, they remain low in absolute terms, and real interest rates are still at accommodative levels. As a result, there has so far been relatively little negative impact on the broader domestic economy. In fact, the positive e ects appear to have been more signi cant, particularly for sectors such as banks, where pro tability had previously been held back by the negative interest rate policy. For the Company, the impact of higher interest rates, including on the cost of gearing, has also remained limited. Monetary policy will therefore require careful management. The BOJ has continued to normalise policy as in ation and wage growth have become more durable. At its meeting at the end of July, it left the policy rate unchanged but communicated a somewhat more ‘hawkish’ stance, increasing expectations that another rate increase could come earlier than previously anticipated. Gradual normalisation should be positive for the economy and nancial companies, but an overly rapid tightening cycle could place pressure on interest- rate-sensitive sectors and domestic demand. Externally, the outlook remains uncertain. Geopolitical tension in the Middle East could disrupt energy supplies and raise the price of commodities such as oil and naphtha, as well as their transportation costs – this would be particularly challenging for Japan which imports much of its energy. US trade policy and still-elevated tari levels also remain potential headwinds for exporters and global growth. The generative AI investment cycle is another area that warrants close attention. Demand for semiconductors, optical components and power infrastructure remains strong, but valuations in parts of the supply chain have become demanding. Investors are increasingly assessing whether data centre operators can earn adequate returns on their very large capital expenditure programmes, and whether AI will disrupt existing software and services business models. These questions are likely to keep market leadership volatile and create a wide dispersion between winners and losers. From a valuation perspective, the aggregate market sits towards the upper end of its historical range, but this disguises substantial di erences between individual stocks. The AI-related leaders typically command high premiums, but in our preferred hunting ground further down the market cap spectrum, we nd many businesses trading at signi cant discounts. This disparity should reward detailed fundamental research and disciplined stock selection. It also gives us con dence that we can build a portfolio capable of delivering attractive total returns, even if the overall market advances more slowly. To conclude, Japan combines improving corporate behaviour, a more supportive nominal growth environment and a broad range of under-appreciated businesses. Although geopolitical risks, scal concerns and elevated valuations in certain areas may keep volatility high, the structural case for Japanese equities remains intact. In this environment, with such a wide range of valuations available across a deep opportunity set, Japan should be a market that rewards astute stock selection. With a proven, high-conviction approach and prudent use of gearing, we remain con dent that our focus on companies with strong franchises, visible self-help potential and attractive valuations can continue to create additional value for the Company’s shareholders. Masaki Taketsume Investment Manager Schroder Investment Management Limited 5 October 2026 Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any nancial instrument/securities or adopt any investment strategy. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 13 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() One of Japan’s leading banks and our preferred investment within the sector. The company has a strong track record of delivering on its business goals and generating attractive returns for shareholders. We hold a larger position in Sumitomo Mitsui than some of its peers because we believe it o ers the best balance of growth potential, pro tability and shareholder value. Sumitomo Mitsui Financial Group Hitachi Recruit Holdings Toyota Motor Tokio Marine Holdings In recent years, Hitachi has transformed itself from a broad industrial conglomerate into a more focused technology and infrastructure business. It is now concentrated on areas such as digital services, power networks and transport systems, which are bene ting from growing demand for digitalisation and cleaner energy solutions. We believe these trends should support steady growth and improving pro tability over time. Recruit owns Indeed, one of the world’s leading online recruitment platforms, as well as a range of sta ng and digital marketplace businesses. The company helps connect employers with job seekers and consumers with service providers. While concerns around arti cial intelligence have weighed on its share price, we believe Recruit’s strong market position and long-term growth prospects remain intact, creating an attractive investment opportunity. Toyota is our highest-conviction investment in the automotive sector. Its global scale, strong nancial position and leadership in hybrid vehicle technology gives it signi cant advantages over competitors. We believe Toyota is well- positioned to bene t from long-term trends in the car industry, including vehicle electri cation and advances in autonomous driving technology. Tokio Marine is Japan’s leading insurance company and our preferred investment in the sector. The company combines a stable domestic business with growing overseas operations, particularly in specialist insurance markets. This strategy provides an attractive mix of dependable earnings and long-term growth opportunities while reducing reliance on any single market. ## Top Ten Holdings As at 31 July 2026 1 2 3 4 5 Sector: Banks Portfolio exposure: £25.9m % of portfolio: 5.0% Sector: Electric Appliances Portfolio exposure: £24.7m % of portfolio: 4.8% Sector: Services Portfolio exposure: £19.4m % of portfolio: 3.7% Sector: Transportation Equipment Portfolio exposure: £17.3m % of portfolio: 3.3% Sector: Insurance Portfolio exposure: £15.8m % of portfolio: 3.1% Photos courtesy of and/or © • #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 14 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Mizuho is one of Japan’s largest banking groups. Despite its strong market position, the shares trade at a lower valuation than some of its peers. We believe the company’s focus on improving execution and increasing returns to shareholders through dividends and buybacks should help narrow this valuation gap over time. Mizuho Financial Group Orix TDK Mitsui & Co Mitsubishi Electric Orix is a diversi ed nancial services company with interests spanning leasing, banking, insurance, infrastructure and private equity investments. Its broad range of businesses provides multiple sources of earnings growth and resilience. We believe the company’s commitment to improving pro tability and shareholder returns could lead to further value creation for investors. TDK is a global manufacturer of electronic components used in a wide range of products, from smartphones and electric vehicles to industrial equipment. The company is increasingly focused on higher-growth areas such as sensors, advanced batteries and automotive technologies. We believe that this shift will enable TDK to bene t from growing demand for next-generation electronics. Mitsui is one of Japan’s largest trading and investment companies, with interests in natural resources, healthcare, energy and infrastructure. Its resource interests generate strong cash ows, while ongoing investment in other faster growing areas is helping to diversify its earnings. The company has a strong record of returning cash to shareholders through dividends and share buybacks, which we believe enhances its long-term appeal. Mitsubishi Electric is bene ting from both internal improvements and favourable industry trends. Management is focused on improving e ciency, streamlining the business and enhancing shareholder returns. As one of Japan’s largest defence contractors, the company is well- positioned to bene t from rising defence spending as well as demand for advanced industrial technology. Despite these strengths, we believe the shares remain attractively valued. ## Top Ten Holdings As at 31 July 2026 6 7 8 9 10 Sector: Banks Portfolio exposure: £15.1m % of portfolio: 2.9% Sector: Other Financing Business Portfolio exposure: £14.7m % of portfolio: 2.8% Sector: Electric Appliances Portfolio exposure: £12.2m % of portfolio: 2.4% Sector: Wholesale Trade Portfolio exposure: £12.1m % of portfolio: 2.3% Sector: Electric Appliances Portfolio exposure: £11.2m % of portfolio: 2.2% Photos courtesy of and/or © • #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 15 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Stocks in bold are the 20 largest investments, which by portfolio exposure account for 51.00% (31 July 2025: 50.6%) of total investments. The Portfolio Exposure column indicates the impact on market price movements resulting from the ownership of shares and derivative instruments. The Fair Value column represents the true value of the portfolio, which is re ected on the Balance Sheet. In the case of holding a Contract for Di erence (CFD), the Fair Value re ects the pro t or loss generated by the contract since its inception, based on the movement of the underlying share price. However, when the Company solely holds shares, both the Fair Value and the Portfolio Exposure align. Electric Appliances Hitachi (shares and long CFD) 14,106 24,714 4.8% TDK 12,185 12,185 2.4% Mitsubishi Electric 11,221 11,221 2.2% Ibiden 9,798 9,798 1.9% Fanuc 9,725 9,725 1.9% Yokogawa Electric 8,001 8,001 1.5% Ricoh 7,011 7,011 1.4% Rohm 6,190 6,190 1.2% Kohoku Kogyo 5,474 5,474 1.1% Nihon Kohden 4,500 4,500 0.9% Megachips 3,670 3,670 0.7% Hirose Electric 2,603 2,603 0.5% Total Electric Appliances 94,484 105,092 20.5% Banks Sumitomo Mitsui Financial Group (shares and long CFD) 12,795 25,884 5.0% Mizuho Financial Group (shares and long CFD) 6,634 15,065 2.9% Yokohama Financial Group 9,297 9,297 1.8% Total Banks 28,726 50,246 9.7% Services Recruit Holdings (shares and long CFD) 10,492 19,367 3.7% Japan Post 9,355 9,355 1.8% Kyoritsu Maintenance 6,131 6,131 1.2% Daiei Kankyo 5,764 5,764 1.1% CTI Engineering 1,062 1,062 0.2% Total Services 32,804 41,679 8.0% Fair value Portfolio Exposure £’000 £’000 % 1 Information & Communication Internet Initiative Japan 7,284 7,284 1.4% Capcom 7,239 7,239 1.4% Nippon Telegraph and Telephone (shares and long CFD) 2,703 6,750 1.3% Nomura Research Institute 5,254 5,254 1.0% Otsuka 5,219 5,219 1.0% PayPay 4,968 4,968 1.0% LY Corporation 4,589 4,589 0.9% Total Information & Communication 37,256 41,303 8.0% Chemicals Aica Kogyo 6,518 6,518 1.3% Asahi Kasei 6,382 6,382 1.2% Nippon Soda 5,968 5,968 1.2% Nifco 5,884 5,884 1.1% Zacros 5,448 5,448 1.1% FP 5,068 5,068 1.0% NOF 4,279 4,279 0.8% Total Chemicals 39,547 39,547 7.7% Construction Infroneer 8,916 8,916 1.7% Sanki Engineering 7,981 7,981 1.5% Nippon Densetsu Kogyo 6,265 6,265 1.2% Sumitomo Forestry 1,957 1,957 0.4% Raiznext 1,206 1,206 0.2% Total Construction 26,325 26,325 5.0% Fair value Portfolio Exposure £’000 £’000 % 1 ## Investment Portfolio As at 31 July 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 16 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Insurance Tokio Marine (shares and long CFD) 9,001 15,828 3.1% T&D Holdings 10,322 10,322 2.0% Total Insurance 19,323 26,150 5.1% Machinery Disco 8,242 8,242 1.6% THK 7,776 7,776 1.5% Galilei 5,023 5,023 1.0% Hosokawa Micron 4,667 4,667 0.9% Total Machinery 25,708 25,708 5.0% Wholesale Trade Mitsui (shares and long CFD) 4,961 12,059 2.3% Marubeni 8,142 8,142 1.6% Doshisha 5,251 5,251 1.0% Total Wholesale Trade 18,354 25,452 4.9% Transportation Equipment Toyota Motor (shares and long CFD) 2,965 17,345 3.3% Suzuki Motor 4,267 4,267 0.8% Total Transportation Equipment 7,232 21,612 4.1% Fair value Portfolio Exposure £’000 £’000 % 1 Nonferrous Metal JX Advanced Metals 9,007 9,007 1.7% Fujikura 7,197 7,197 1.4% Total Nonferrous Metal 16,204 16,204 3.1% Foods Asahi Breweries 9,410 9,410 1.8% Nichirei 6,140 6,140 1.2% Total Foods 15,550 15,550 3.0% Other Financing Business Orix 14,686 14,686 2.8% Total Other Financing Business 14,686 14,686 2.8% Retail Trade Isetan Mitsukoshi Holdings 5,196 5,196 1.0% Blue Zones Holdings 5,160 5,160 1.0% Nippon Gas 3,422 3,422 0.7% Total Retail Trade 13,778 13,778 2.7% Real Estate Mitsui Fudosan 7,422 7,422 1.4% Park24 3,817 3,817 0.7% Total Real Estate 11,239 11,239 2.1% Fair value Portfolio Exposure £’000 £’000 % 1 Glass & Ceramics Products Niterra 10,765 10,765 2.1% Total Glass & Ceramics Products 10,765 10,765 2.1% Pharmaceutical Takeda Pharmaceutical (shares and long CFD) 4,950 9,463 1.8% Total Pharmaceutical 4,950 9,463 1.8% Rubber Products Yokohama Rubber 7,632 7,632 1.5% Total Rubber Products 7,632 7,632 1.5% Iron & Steel Nippon Steel 6,912 6,912 1.3% Total Iron & Steel 6,912 6,912 1.3% Precision Instruments Rigaku 6,310 6,310 1.2% Total Precision Instruments 6,310 6,310 1.2% Securities Integral 2,222 2,222 0.4% Total Securities 2,222 2,222 0.4% Total Investments and Derivative Financial Instruments 440,007 517,875 100.0% 1 Portfolio exposure is calculated as each holding’s market exposure (including ordinary shares and long CFDs) divided by the total market exposure of all investments and nancial derivative instruments. The percentages shown therefore total 100% and are not measures of exposure relative to NAV, which is used to calculate the Company’s gearing. Fair value Portfolio Exposure £’000 £’000 % 1 ## Investment Portfolio As at 31 July 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 17 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() The Manager’s Japanese equity investment philosophy is based on the belief that a competitive advantage can be gained from in-house research which should translate into superior investment performance through disciplined portfolio construction. We believe the Japanese equity market ultimately acts e ciently in re ecting the intrinsic value of companies. In the short to medium term, however, considerable ine ciencies are frequently evident in individual stocks. These ine ciencies provide repeatable opportunities to identify and invest in undervalued stocks, with the aim of delivering a better return than the market as a whole on a rolling three-to- ve year view. Our investment resource is entirely devoted to this aim, focusing on individual company fundamentals to understand the true worth of a stock and investing in a portfolio of 60-70 of the highest conviction ideas. These then tend to be held for the long term, with value being realised as the market gradually re ects their true value more e ciently. The portfolio manager is Masaki Taketsume, who has worked at Schroders since 2007 and has been responsible for the Schroder Japan Trust since 2019. #### Disciplined and repeatable approach Management of the portfolio is ‘bottom-up’ and long-term. The screening process begins with fundamental company analysis rather than shorter-term macroeconomic impacts like changes in exchange rates. Given the long-term approach, portfolio turnover tends to be low. Risk monitoring tools check that the bottom-up approach is on track. #### Fundamental research Comprehensive and detailed research lies at the centre of the investment process. We rely on input from a team of highly experienced Tokyo-based analysts that have an exceptional knowledge of the Japanese market and the companies within it. Our research focuses on long-term value creation and strength of franchise, targeting undervalued companies where long-term growth prospects are not fully priced in. We prefer companies that can generate and sustain above average returns on their capital, while also looking for opportunities in turnaround situations where companies can improve returns from depressed levels. Company meetings are integral to the research process and we will not purchase a stock unless we have met the management of the company concerned. Our analysts use Schroders’ proprietary company valuation model (CVM) to generate three-year earnings and cash ow forecasts, and a range of valuation measures. Our analysts are also required to score each company on the ve qualitative criteria illustrated below. The total of this score determines the premium or discount we give the stock relative to the market and this is used to determine a judgement of fair value. We take certain non- nancial factors into account as part of the stock evaluation and valuation process. Environmental, social and governance (ESG) issues are integrated into our qualitative assessment of companies, which in uences valuation discounts and premium levels. Any risks that are identi ed can then be addressed with company management and, if we don’t see subsequent improvement, we can treat those risks as a signi cant discount factor in our fair value analysis. Comprehensive research coverage of both large and small cap stocks Monitored & researched researched Companies graded 1-4 Analysts’ recommendations Investment meeting Exchange of views Portfolio construction Strongest stock ideas Portfolio control & monitoring Schroders’ risk management risk management Stock selection Portfolio construction and risk management ## Investment Approach and Process Investment process overview: #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 18 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() The process for establishing our fair value for each stock focuses on the broad factors circled below: Behind those broad factors are a range of speci c criteria which analysts explicitly score within the fair value model. Speci c sustainability factors and ESG criteria are included within the broader categories of ‘Management’ and “Shareholder focus”, detailed below: Fair Value Net cash adjustment Growth Quality of Earnings Balance Sheet Management Shareholders Value Valuation Premium/Discount driven by qualitative analysis Growth Quality of Earnings Balance Sheet Management Shareholders Value Valuation Premium/Discount driven by qualitative analysis Growth Quality of Earnings Balance Sheet Management Shareholders Value Valuation Premium/Discount driven by qualitative analysis Growth Quality of Earnings Balance Sheet Management Shareholders Value Valuation Premium/Discount driven by qualitative analysis Growth Quality of Earnings Balance Sheet Management Shareholders Value Valuation Premium/Discount driven by qualitative analysis • 3-year-pr.-\*)(ro'\*& %$\*#"! •! # %\* #!(ro'\*&!\*.! mark#\*!% #r%(# •! % % #! &##\* •! r. # \*! ! . % •! % %(# # \*! ! \*r%\*#( •! Tr% !recor !.$! % %(# # \* ." (! (! !e % %\* . • Transpar# ! # ! ! . re \*.! # \*." • Corpor%\*#! o #" % # •! % % ! . !) &%r#&. #"!r#\* " # \*!% . %\* . !.$! % \*% • "% !.$!#%" ( ! # # \*%\* . !% ! . %\* \* ! .$!#%" ( • "% %"# !.$ ! % . \* ( ! \*#(" \* !.$! "# ."\*# !#%" ( • #( %\* . !" ! • ". ."\* . !.$!"# "" ( ! #%" ( • # # # !. ! % ." ! \*. #" #" Our analysts are responsible for assigning the scores to each component within the fair value model, re ecting our understanding of best practice within particular industries. To do this, they will draw on internal and external ESG information so we can form an opinion and assign an overall score to the stock which will be discussed and challenged during subsequent discussion within the broader team, including investment managers. This approach ensures our process is robust and consistent across sectors. #### Portfolio construction While constructing the portfolio, our focus is on the highest conviction stock ideas within the context of an appropriate risk management framework, while also setting, in conjunction with the Board, an appropriate level of gearing for the portfolio. We aim to maintain gearing in the range between 10% and 17.5%, allowing shareholders to potentially bene t even more as the ine ciencies we have identi ed become more appropriately priced by the market. Holdings tend to fall into three categories of ine ciency: 1. Market misperception – companies with self-improving credentials, with management initiatives to sustainably enhance operational performance, being under- appreciated by other investors. 2. Market oversight – undervalued companies, especially among small and mid-caps where research coverage is less widespread, with strong and defendable business franchises in niche product areas. 3. Short-term overreaction – ideas arising from abrupt but transitory events which push valuations of quality companies temporarily to unsustainably low levels. Outside these three categories, the balance of the portfolio represents ‘best in class’ stocks with reasonable valuations. The weighting given to each of these segments evolves over time, but a reasonable exposure to each category ensures a good level of diversi cation for the portfolio as a whole. The portfolio tends to exhibit a high ‘active share’, which means that its constituents deviate signi cantly from the Benchmark index. Meanwhile, the approach tends to result in a bias towards value stocks and smaller companies, as well as an overall focus on quality. An important part of the portfolio construction process is regular meetings to debate and receive peer group challenge. These meetings provide a forum to discuss and debate investment views and strategy, together with stock positions and stock ideas, and importantly, serve to ensure vigorous debate. #### Responsible investment and the Company’s approach to ESG factors The Company delegates responsibility for considering ESG factors in investment decisions to its Manager. The Company’s ESG approach also relies on a bottom-up approach, relying on internal research and company meetings conducted by Schroders' analysts in Tokyo. The investment views are based on a long-term assessment of quality, with a focus on the sustainability of a company’s business model. In the evolving Japanese equity market, identifying early signs of positive change and understanding strengths, weaknesses, and changes in ESG areas, particularly governance, strengthens the investment team’s understanding of companies and informs investment decisions. ESG analysis is enhanced through the use of Schroders’ proprietary models – SustainEx and Context. SustainEx calculates a monetary value of the environmental and social externalities that companies create, which is important to #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 19 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() understand because of the risk that these externalities may become internalised over time due to factors like regulation and changes in consumer behaviour. Context provides a systematic framework for analysing the quality of a company’s relationship with its most material stakeholders. Schroders believes that companies with strong ESG management are more likely to perform better. It complies with the UK Stewardship Code and provides regular reporting on its policy implementation to the Board. The Board also expects the Manager to engage with investee companies, exercise voting rights, and promote responsible practices. Schroders has a long history of engagement and active ownership, and it has engaged with companies on ESG related matters for over 15 years. As active investors, Schroders considers active ownership to be a key channel of in uence on management teams so that more sustainable practices are properly considered in managing the companies. Proxy votes are largely aligned with the Manager’s corporate governance policy. The Manager’s integration of ESG, policy, and engagement details can be found within Schroders’ Group-wide Sustainable Investment Policy https://www.schroders.com/en/global/individual/sustainabili ty/sustainability-policies-disclosures-and-reports/ #### The Company’s stewardship Schroders’ Japanese equity team is committed to local stewardship activities in Japan and, in demonstration of this, it has been a signatory to the Japanese Stewardship Code since 2014. In 2015, Schroders established its Stewardship Committee, chaired by Kazuhiro Toyoda and including four further members from its team in Tokyo. The purpose of the Committee is to engage with companies on their ESG activities with the aim of encouraging best practice and in uencing change over time. The Stewardship Committee maintains a Focus List of engagement stocks, in consultation with the broader investment team. There are currently 17 companies on the Focus List and a further 18 companies have been removed from the list during the lifetime of the Committee. The prospects for improvement in these engagement stocks, within a stated timeframe, are judged against the ESG/Context analysis that is integrated into the research output for other positions. The process is designed to ensure that resources are focused on positions with the greatest potential for positive impact within portfolios. The relevant analyst will attend the engagement meetings, ensuring that there is feedback within the process, which enables a robust debate on prioritisation, time horizons and themes for engagement. In addition to the Focus List engagement, the team initiated a programme of Climate Engagement as part of group wide initiatives under the Engagement Blueprint published in February 2022. The team started with 33 Japanese companies in 2022 and engaged in discussion with management of those companies about their climate policy and disclosures. In 2024, the team narrowed the list down to 15 companies and continues to engage with them periodically to advocate Schroders’ approach and expectations and sharing the Manager’s view on their climate disclosure. The team aims to identify areas for improvement for individual companies based on its research output. The Stewardship Committee members are also responsible for all proxy voting and the Committee will discuss any contentious items. It is also in regular contact with the proxy voting team in London, which is responsible for voting for the Company, to ensure that its views are aligned and that it is sending consistent messages to companies. All records are disclosed in Japan locally and globally. #### Engagement case studies We share below two examples of engagements we have carried out with investee company management under our Stewardship responsibilities. Toyota Industries is a Toyota Motor a liate auto parts maker and a leading manufacturer of forklifts and material handling systems. We conducted a collaborative engagement through the Asian Corporate Governance Association (ACGA) regarding the company’s tender o er (TOB) and proposed privatisation, with the protection of minority shareholder interests as a key focus. In August 2025, ACGA sent a letter to the boards of Toyota Industries and Toyota Motor Corporation, requesting enhanced disclosure on the TOB process, including the assumptions underpinning the valuation, the basis for determining the o er price, and the management of con icts of interest. Subsequently, in October, we participated in a dialogue with members of Toyota Industries’ Special Committee, discussing topics such as the valuation methodologies employed, including discounted cash ow (DCF) analysis, the treatment of cross- shareholdings and real estate assets, tax-related assumptions, and the appropriateness of the o er price. In addition, through ACGA we participated in engagements with Toyota Industries, Toyota Motor Corporation, and Toyota Fudosan, exchanging views on the transparency of the TOB process, disclosure of key valuation assumptions, and the management of con icts of interest arising from intra-group transactions. Company representatives explained that they were considering enhanced disclosure in response to investor feedback and had established governance arrangements designed to preserve independence, such as excluding directors with con icts of interest from the decision-making process. It was also con rmed that the Special Committee did not accept the initial o er price and conducted multiple rounds of negotiations before reaching agreement. Following these sustained collaborative engagements, the company’s independent Special Committee changed its recommendation on the TOB from a neutral stance to a positive recommendation. The o er price was ultimately revised, and the number of providers issuing fairness opinions was expanded to three, demonstrating improvements in both procedural fairness and transparency. During a dialogue with the CEO in January 2026, the company also acknowledged that engagement with investors, including ACGA, had a signi cant in uence on the decision-making process and the deliberations of the independent directors. This represents a notable example of collaborative engagement in a transaction where the protection of minority shareholder interests was a critical consideration. By sharing concerns with other investors through ACGA and maintaining ongoing engagement alongside our own direct dialogue with the company, we contributed to improvements in disclosure practices and the overall integrity of the process. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 20 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Suzuki Motor Corporation is a leading Japanese multinational automaker renowned for its global dominance in compact cars, mini vehicles (KEI cars), motorcycles, and marine outboard motors. The company has remained subject to our ongoing engagement on climate change. During our 2025 dialogue, we discussed a broad range of topics, including progress toward its FY2030 emissions reduction targets, technological developments, Scope 3 emissions reductions across the supply chain, and its decarbonisation strategy in the Indian market. In its Growth Strategy for FY2030 announced in January 2023, Suzuki had committed to achieving carbon neutrality by 2050 in Japan and Europe and by 2070 in India. However, re ecting evolving societal expectations and feedback from investors, the company subsequently revised its policy and now aims to achieve carbon neutrality globally, including in India, by 2050. To achieve its FY2030 emissions reduction targets, Suzuki has adopted a multi-pathway strategy rather than relying solely on battery electric vehicles (BEVs), recognising that demand for internal combustion engine vehicles is expected to persist, particularly in emerging markets. Vehicle lightweighting plays an important role in both improving the energy e ciency of BEVs and enhancing the fuel economy of internal combustion engine vehicles, and the company has disclosed certain technological developments that contribute to emissions reductions. In India, where Suzuki expects the transition to EVs to take longer, the company is promoting the use of compressed natural gas (CNG) as well as compressed biogas (CBG) derived from livestock manure. Suzuki views CBG as a solution that can not only reduce emissions but also potentially enhance income opportunities in rural areas, thereby supporting both local economic development and decarbonisation objectives. While Suzuki has articulated its intention to reduce Scope 3 emissions across its entire value chain, it has not disclosed details regarding the establishment of speci c emissions reduction targets for suppliers. We view the company’s decision to bring forward its carbon neutrality ambition to 2050 on a global basis, together with its diversi cation of technologies and fuels tailored to regional circumstances, as representing a degree of progress. Going forward, we will continue to monitor the likelihood of achieving its FY2030 targets, the development of speci c measures and target-setting for Scope 3 emissions reductions, including those relating to suppliers, and the company’s ability to balance business growth with emissions reductions in the Indian market. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 21 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() #### Section 3: Strategic Report ## Section 3: Strategic Report #### The Company 23 #### Stakeholder Engagement – Section 172 Report 27 #### Risk Report 31 #### Conclusion 34 Higashi-Osaka Junction 22 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() #### Business model The Board has appointed Schroder Unit Trusts Limited (the “Manager”), to implement the investment strategy and to manage the Company’s assets in line with the appropriate restrictions placed on it by the Board, including limits on the type and relative size of holdings which may be held in the portfolio and on the use of gearing, cash, derivatives and other nancial instruments as appropriate. The terms of the appointment of the Manager, and the delegation by the Manager of investment management services to Schroder Investment Management Limited (“SIM” or the “Investment Manager”), are described more completely in the Directors’ Report. The Manager also promotes the Company using its sales and marketing teams. The Board and Manager work together to deliver the Company’s investment objective, as demonstrated in the diagram below. #### Purpose, values and culture The Company’s purpose is to create long-term shareholder value, in line with the investment objective. The Company’s culture is driven by its values: transparency, engagement and rigour, with collegial behaviour and constructive, robust challenge. The values are all centred on achieving returns for shareholders in line with the Company’s investment objective. The Board also sets out the e ective management or mitigation of the risks faced by the Company and, to the extent it does not con ict with the investment objective, aims to structure the Company’s operations with regard to all its stakeholders and take account of the impact of the Company’s operations on the environment and community. As the Company has no employees and acts through its service providers, its culture is represented by the values and behaviour of the Board and third parties to which it delegates. The Board aims to ful l the Company’s investment objective by encouraging a culture of constructive challenge with all key suppliers and openness with all stakeholders. The Board is responsible for embedding the Company’s culture in its operations and does so by actively monitoring third parties on an ongoing basis. Set objectives, strategy and • key performance indicators (KPIs) Appoints the Manager and • other service providers to achieve objectives The Investment Manager • implements the investment strategy by following an investment process Supported by strong • research and risk environment Regular reporting and • interaction with the Board The Board is focused on ensuring that: the Company remains • attractive to investors the fees and ongoing • charges remain competitive Marketing, PR and sales • capability of the Manager Support from the corporate • broker with secondary market intervention to support discount/premium management Portfolio and risk • management Achievement of KPIs • Use of gearing • Discount/premium and • liquidity management through share issuance and repurchase Strategy Oversight Promotion Investment Board Competitiveness SHAREHOLDER VALUE ## The Company #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 23 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() #### Investment trust status The Company carries on business as an investment trust. Its shares are listed and admitted to trading on the main market of the London Stock Exchange. It has been approved by HM Revenue & Customs as an investment trust in accordance with section 1158 of the Corporation Tax Act 2010, by way of a one-o application and it is intended that the Company will continue to conduct its a airs in a manner which will enable it to retain this status. The Company is domiciled in the UK and is an investment company within the meaning of section 833 of the Companies Act 2006. The Company is not a “close” company for taxation purposes. #### Continuation vote It is not intended that the Company should have a limited life but the Directors consider it desirable that the shareholders should have the opportunity to review the future of the Company at appropriate intervals. Accordingly, the Articles of Association contain provisions requiring the Directors to put a proposal for the continuation of the Company to shareholders at ve yearly intervals. The next continuation vote will be proposed at the 2029 AGM. In June 2024, the Board announced its proposal for a new conditional tender o er mechanism. In the event that the Investment Manager does not deliver performance at least in line with the Benchmark over a ve-year period starting from 31 July 2024, then the Board will put to shareholders a proposal for a tender o er of 25% of the issued share capital at a price equal to the prevailing NAV less costs. #### Investment model Investment objective The principal investment objective of the Company is to achieve capital growth from an actively managed portfolio principally comprising securities listed on the Japanese stock markets, with the aim of achieving returns in excess of the Tokyo Stock Price Index Total Return Index in sterling over the longer term. Investment policy The Manager utilises an active stock driven investment approach, drawing on Schroders’ extensive research resources in Japan. The portfolio is principally invested in a broad range of companies quoted on the Tokyo Stock Exchange, the regional stock markets of Fukuoka, Hiroshima, Kyoto, Nagoya, Niigata, Osaka and Sapporo and the Japanese over the counter (OTC) market. Investments may also be made in companies listed elsewhere but controlled from Japan or with a material exposure to the Japanese economy. There are no constraints on size of company or sector allocation. This exibility will allow the Manager to take advantage of changes in market sentiment and in the domestic economic cycle as it develops. The portfolio is mainly invested in equities but may also be invested in warrants, convertibles and other derivative instruments where appropriate. The Company may invest up to 5% of its assets in securities which are not listed on any stock exchange, but would not normally make such investment except where the Manager expects that the securities will shortly become listed on a Japanese stock market. The Company may use gearing (including the use of CFDs) to enhance performance but investment exposure will not exceed 125% of net asset value. #### Investment restrictions and spread of risk The key restrictions imposed on the Manager are that: a) no more than 15% of the Company’s total net assets, at the date of acquisition, may be invested in any one company; b) no more than 10% of the value of the Company’s gross assets may be invested in other listed investment companies unless such companies have a stated investment policy not to invest more than 15% of their gross assets in other listed companies; c) the Company will not invest more than 15% of its gross assets in other listed investment companies or investment trusts; d) no more than 15% of the Company’s total net assets may be invested in open-ended funds; and e) no more than 25% of the Company’s total net assets may be invested in the aggregate of unlisted investments and holdings representing 20% or more of the equity capital of any company. In accordance with the investment objective, the Company, while being invested in a single country, ensures that the objective of spreading risk has been achieved through portfolio diversi cation (66 investments spread over 21 sectors at 31 July 2026), the largest holding being Sumitomo Mitsui Financial Group with the portfolio weight of 5.0%. #### KPIs The Board’s review of nancial performance focuses on a number of key measures, to monitor and assess the Company’s success in achieving its objective. Further comment on performance can be found in the Chair’s Statement. The following KPIs are used: NAV per share total return; • Share price discount/premium; • Ongoing charges ratio; and • Dividend yield. • Some KPIs are Alternative Performance Measures (APMs), and de nitions of these terms can be found on pages 78 and 79. ## The Company #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 24 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() #### Corporate and social responsibility The Board recognises the Company’s responsibilities with respect to corporate and social responsibility and engages with its outsourced service providers to safeguard the Company’s interests. As part of this ongoing monitoring, the Board receives reporting from its service providers with respect to their anti-bribery and corruption policies; Modern Slavery Act 2015 statements; diversity policies; nancial crime policies; greenhouse gas and energy usage reporting. Diversity policy The Board has adopted a diversity and inclusion policy. Appointments and succession plans will always be based on merit and objective criteria and, within this context, the Board seeks to promote diversity of gender, social and ethnic backgrounds, cognitive and personal strengths. The Board will encourage any recruitment agencies it engages to nd a range of candidates that meet the objective criteria agreed for each appointment. Candidates for Board vacancies are selected based on their skills and experience, which are matched against the balance of skills and experience of the overall Board taking into account the criteria for the role being o ered. Statement on Board diversity – gender and ethnic background The Board has made a commitment to consider diversity when reviewing the composition of the Board and notes the Listing Rules requirements (LR 9.8.6R(9) and (11)) regarding the targets on board diversity: at least 40% of individuals on the Board are women; • at least one senior Board position is held by a woman; and • at least one individual on the Board is from a minority • ethnic background. The FCA de nes senior board positions as Chairman, Chief Executive O cer (“CEO”), Chief Financial O cer (“CFO”) or Senior Independent Director (“SID”). As an investment trust with no executive o cers, the Company has no CEO or CFO. The Board has re ected that the senior positions of the Company are the Chair of the Board and the SID in its diversity tables. The Board has chosen to align its diversity reporting reference date with the Company’s nancial year end and proposes to maintain this alignment for future reporting periods. The following information has been provided by each Director through the completion of a questionnaire. As at 31 July 2026, the Company met all of the criteria in relation to the number of women on the Board, for at least one senior board position to be held by a woman and for at least one individual on the Board to be from a minority ethnic background. There have been no changes since 31 July 2026 to the date of publication of the annual report and nancial statements however, a recruitment process is currently underway to appoint an additional director. Number of Number of Percentage senior positions Gender Board members of the Board on the Board Men 1 25.0% 1 Women 3 75.0% 1 Not speci ed/prefer not to say n/a n/a n/a Number of Percentage of senior positions Ethnic background Board members of the Board on the Board White British or other White (including minority-white groups) 3 75.0% 1 Mixed/Multiple Ethnic Groups n/a n/a n/a Asian/Asian British 1 25.0% 1 Black/African/Caribbean/Black British n/a n/a n/a Other ethnic group, including Arab n/a n/a n/a Not speci ed/prefer not to say n/a n/a n/a #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 25 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Promotion The Company promotes its shares to a broad range of investors who have the potential to be long-term supporters of the investment strategy. The Company seeks to achieve this through its Manager and corporate broker, which promote the shares of the Company through regular contact with both current and potential shareholders as well as their advisers. These activities consist of one-on-one meetings, regional road shows and attendance at conferences for investors. In addition, the Company’s shares are supported by the Manager’s wider marketing of investment companies targeted at all types of investors; this includes maintaining close relationships with adviser and execution-only platforms, advertising in the trade press, maintaining relationships with nancial journalists and the provision of information on Schroders’ website and LinkedIn. The Board also seeks active engagement with investors, and meetings with the Chair are o ered to investors when appropriate. Shareholders are encouraged to sign up to the Manager’s Investment Trusts update, to receive information on the Company directly please use the following link: https://www.schroders.com/en-gb/uk/individual/never-miss- an-update/selection/ Relations with shareholders Shareholder relations are given high priority by both the Board and the Manager. The Company communicates with shareholders through its webpages and the annual and half year reports which aim to provide shareholders with a clear understanding of the Company’s activities and its results. In addition to the engagement and meetings held during the year described in the “Promotion” section, the Chair of the Board, Committee Chairs and the other Directors attend the AGM and are available to respond to queries and concerns from shareholders. Financial crime policy The Company continues to be committed to carrying out its business fairly, honestly and openly, and operates a nancial crime policy, covering bribery and corruption, tax evasion, money laundering, terrorist nancing and sanctions, as well as seeking con rmations that the Company’s service providers’ policies are operating soundly. Modern Slavery Act 2015 As an investment trust, the Company does not provide goods or services in the normal course of business and does not have customers. Accordingly, the Directors consider that the Company is not required to make any slavery or human tra cking statement under the Modern Slavery Act 2015. Climate Greenhouse gas emissions and energy usage As the Company outsources its operations to third parties, it has no signi cant greenhouse gas emissions and energy usage to report. Taskforce for Climate-Related Financial Disclosures (“TCFD”) Investment trusts are currently exempt from the TCFD. The Board will continue to monitor the situation. However, the Company’s Manager produces a product level disclosure consistent with the TCFD which can be found here: https://mybrand.schroders.com/m/213a35626ddc6f70/origi nal/TCFD-GB72369M-Schroder-Japan-Trust-plc- 20241231.pdf #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 26 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Shareholders 2025/2026 highlights At the AGM in 2025 questions and feedback from shareholders were welcomed. The Board, along with the Manager, look forward to meeting and interacting with more shareholders at the forthcoming AGM on Friday, 6 November 2026 at 1.00pm. This year, alongside the Investment Manager’s presentation, Non-Executive Director Merryn Somerset Webb will interview Masaki Taketsume in person, covering topics such as corporate governance, active value investing and the changing dynamics of the Japanese macroeconomic landscape. The Company’s web pages continued to be refreshed and enhanced during the year to optimise the user experience for shareholders and investors. Shareholders can, via the Company’s web pages, subscribe to the Schroders investment trusts newsletter to receive regular updates on the Company. The Board were mindful that the majority of shareholders view the Annual Report and Financial Statements via an electronic device and have amended the format of the report to a landscape design to make it more accessible to computer users. The Chair of the Board met with a number of the Company’s major shareholders during the year. Their views were taken into consideration as part of the Board’s duty to ensure their interests were taken into account. The Manager engaged with a number of the Company’s shareholders and investors during the year and regular feedback was provided to the Board. A number of promotional activities were undertaken during the year including Investment Manager interviews, webinars and coverage in key publications. The Board continued to work with Kepler on promoting the Company through its research notes which were published during the year. Engagement Annual General Meeting (AGM): The Company welcomes attendance and participation from shareholders at the AGM. Shareholders have the opportunity to meet the Directors and the Investment Manager and to ask questions. The Board values the feedback it receives from shareholders which is incorporated into Board discussions. Publications: The annual and half year results presentations, as well as factsheets, are available on the Company’s web pages with their availability announced via the Stock Exchange. Feedback and/or questions received from shareholders enable the Company to evolve its reporting which, in turn, helps to deliver transparent and understandable updates. Shareholder communication: The Investment Manager communicates with shareholders periodically. All investors are o ered the opportunity to meet the Chair, Senior Independent Director, or other Board members without using the Manager or Company Secretary as a conduit, by writing to the Company’s registered o ce. The Board also corresponds with shareholders by letter and email. The Board receives regular feedback from its broker on investor engagement and sentiment. Investor Relations updates: At every Board meeting, the Directors receive updates on share trading activity, share price performance and any shareholders’ feedback, as well as any publications or comments in the press. To gain a deeper understanding of the views of its shareholders and potential investors, the Manager also undertakes investor roadshows following publications of results. Signi cance Continued shareholder support and engagement are critical to the continuing existence of the business and the delivery of the long-term strategy of its business. ## Stakeholder Engagement – Section 172 Report During the year under review, the Board discharged its duty under section 172 of the Companies Act 2006 to promote the success of the Company for the benefit of its members as a whole, having regard to the interests of all stakeholders and the desirability of the Company maintaining a reputation for high standards of business conduct. As an externally managed investment trust, the Company has no employees, operations or premises. The Board has identi ed its key stakeholders as the Company’s shareholders, the Investment Manager, other service providers, investee companies and the Company’s lender. The following table explains how the Directors have engaged with all stakeholders during the year and outlines the key activities undertaken. The key decisions made by the Board during the year are set out after the table. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 27 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() The Investment Manager Investee companies 2025/2026 highlights Representatives of the Manager, including the Investment Manager, attended each Board meeting to provide an update on the investment portfolio along with presenting on macroeconomic issues. The portfolio activities undertaken by the Investment Manager and the impact of decisions a ecting investment performance are set out in the Investment Manager’s Review on pages 8 to 13. Engagement Maintaining a close and constructive working relationship with the Investment Manager is crucial as the Board and the Investment Manager both aim to continue to achieve consistent, long-term returns in line with the investment objective. The Board invites the Investment Manager to attend all Board and certain Committee meetings in order to update the Directors on the performance of the investments and the implementation of the investment strategy and objective. Important components in the Board’s collaboration with the Investment Manager are: Encouraging open discussion with the Board; • Recognising that the interests of shareholders and the Investment Manager (as well as of its • other clients) are, for the most part, well aligned, adopting a tone of constructive challenge, balanced when those interests are not fully congruent by robust negotiation of the Investment Manager’s terms of engagement; and Drawing on Directors’ individual experience to support the Manager in its monitoring and • change management of portfolio companies, for the bene t of all of the Investment Manager’s clients. The Management Engagement Committee reviews the performance of the Investment Manager, its remuneration and the discharge of its contractual obligations at least annually. Signi cance Holding the Company’s shares o ers investors a liquid investment vehicle through which they can obtain exposure to the Company’s diversi ed portfolio of investments. The Investment Manager’s performance is critical for the Company to deliver its investment strategy successfully and meet its objective. Engagement The Investment Management team conducts face-to-face and/or virtual meetings with the management teams of all investee companies to understand current trading and prospects for their businesses, and to ensure that their ESG investment principles and approach are understood. The Investment Manager has discretionary powers to exercise the Company’s voting rights on resolutions proposed by the investee companies within the Company’s portfolio. The Investment Manager reports to the Board on stewardship (including voting) issues and the Board will question the rationale for voting decisions made. By active engagement and exercising voting rights, the Investment Manager actively works with companies to improve corporate standards, transparency, and accountability. Signi cance The Board actively monitors the activities of investee companies through its delegation to the Investment Manager. 2025/2026 highlights The Board received regular updates on engagement with investee companies from the Investment Manager at its Board meetings. During the year, the Investment Manager engaged with many of its investee companies (further details can be found on pages 20 and 21). #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 28 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Lender Other service providers Wider society and the environment Engagement The Board maintains regular contact with its key external providers, both through Board and Committee meetings, as well as outside of the regular meeting cycle. Their advice, as well as their needs and views, are routinely taken into account. 2025/2026 highlights Under delegated authority from the Board, the Management Engagement Committee reviewed all material third party service providers. The Board considered the ongoing appointments of its service providers to be in the best interests of the Company and its shareholders as a whole and will continue to monitor their progress in the year ahead. During the prior year the Board agreed that it was in the best interest of the Company to change the Company’s provider of Depositary and Custodian services to J.P. Morgan Europe Limited and a successful transition took place during the year. Signi cance In order to operate as an investment trust on the main market of the London Stock Exchange, the Company relies on a diverse range of advisers to support meeting all relevant obligations. Signi cance Availability of funding and liquidity are crucial to the Company’s ability to take advantage of investment opportunities as they arise. Engagement Considering how important the availability of funding is, the Company aims to demonstrate to lenders that it is a well managed business and, in particular, that the Board focuses regularly and carefully on the management of risk. The Manager manages the relationship with the Company’s lender and reports to the Board at each meeting as and when required for renewals of terms or negotiation of loan covenants. The Manager provides a monthly statement of compliance of the loan covenants to the lender. 2025/2026 highlights The Investment Manager actively used gearing throughout the period and it had a positive e ect on performance during the year. The Company’s gearing continues to operate well within its pre-agreed limit of 25% of net asset value. Signi cance Whilst strong long-term investment performance is essential for an investment trust, the Board recognises that to provide an investment vehicle that is sustainable over the longterm, both it and the Investment Manager must have regard to ethical and environmental issues that impact society. Hence ESG considerations are integrated into the Investment Manager’s investment process and will continue to evolve. Engagement The Board engages with the Investment Manager at each Board meeting in respect of its ESG considerations on existing and new investments. 2025/2026 highlights The Board’s desire for greater engagement reporting has resulted in the inclusion of case studies showcasing how the Investment Manager supports and integrates responsible investing in its investment process set out in this Annual Report. Further details of the ESG practices and case studies can be found in the Investment Process section of this report. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 29 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() The Board negotiated an adjustment to how the • Company’s investment management fee is calculated, with e ect from 1 August 2026. As a result, the Company’s investment management fee was reduced from 0.75% on the rst £200 million of NAV to 0.70% on the rst £200 million of the lesser of market capitalisation and NAV. A fee of 0.65% will be charged on the lesser of market capitalisation and NAV above £200 million. The Board continued to implement its enhanced • dividend policy, declaring quarterly dividends amounting to 4% of the average NAV in each nancial year. The Board maintained the strategy to buy back shares • which provides a degree of liquidity when the discount widens and helps to contain discount volatility. The Board and Management Engagement Committee • undertook reviews of the Investment Manager and the Company’s third-party service providers and agreed that their continued appointment and fees remained in the best interests of the Company and its shareholders. The Board appointed J.P. Morgan Europe Limited as the • Company’s provider of depositary and custodian services. Migration of services commenced on 5 September 2025. Together with the Manager, the Board undertook its • annual visit to Japan to conduct due diligence meetings with key personnel from the Investment Manager, consultants, and investee companies. The Board were mindful that the majority of shareholders • view the Annual Report and Financial Statements via an electronic device and decided to amend the format of the report to a landscape design to make it more accessible to computer users. The Directors were particularly mindful of stakeholder considerations in reaching the following key decisions during the year ended 31 July 2026: #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 30 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() ## Risk Report The Board itself, and through its delegation to its Audit and Risk Committee, is responsible for the Company’s system of risk management and internal control and for reviewing its effectiveness. The Board has adopted a detailed matrix of principal risks affecting the Company’s business as an investment trust and has established associated policies and processes designed to manage and, where possible, mitigate those risks, which are monitored by the Audit and Risk Committee on an ongoing basis. This system assists the Board in determining the nature and extent of the risks it is willing to take in achieving the Company’s strategic objectives. Risk assessment and internal controls review by the Board Risk assessment includes consideration of the scope and quality of the systems of internal control operating within key service providers, and ensures regular communication of the results of monitoring by such providers to the Audit and Risk Committee, including the incidence of signi cant control failings or weaknesses that have been identi ed at any time and the extent to which they have resulted in unforeseen outcomes or contingencies that may have a material impact on the Company’s performance or condition. Although the Board believes that it has a robust framework of internal controls in place this can provide only reasonable, and not absolute, assurance against material nancial misstatement or loss and is designed to manage, not eliminate, risk. Both the principal risks and uncertainties and the monitoring system are also subject to robust review at least annually. The last assessment took place in March 2026. During the year, the Board discussed and monitored a number of risks that could potentially impact the Company’s ability to meet its strategic objectives. The Board receives updates from the Investment Manager, Company Secretary and other service providers on emerging risks that could a ect the Company. The Board was mindful of the evolving global environment during the year; and the risks posed by volatile markets; geopolitical uncertainty; and in ation and corresponding interest levels which could a ect the asset class. The Board noted that, globally there remains uncertainty surrounding potential changes to nancial and public policy and in the US in particular. No signi cant control failings or weaknesses were identi ed from the Audit and Risk Committee’s ongoing risk assessment throughout the nancial year and up to the date of this report. The Board is satis ed that it has undertaken a detailed review of the risks facing the Company and that the internal control environment continues to operate e ectively. Actions taken by the Board and, where appropriate, its Committees, to manage and mitigate the Company’s principal risks and uncertainties are set out in the following table. The “Change” column on the right highlights at a glance the Board’s assessment of any increases or decreases in risk during the year after mitigation and management. The arrows show the risks as increased, decreased, or unchanged. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 31 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Change during Risk Mitigation and management the year Strategy and competitiveness Investment objective The Company’s investment objectives may become out of line with the requirements of investors, resulting in a wide discount of the share price to underlying NAV per share. Unexpected, potentially catastrophic events whether man-made (con ict, poor trade relations for example) or natural disasters, whether arising from climate change, extreme weather events or pandemic disease could impact investment performance. The appropriateness of the Company’s investment remit is periodically reviewed and the success of the Company in meeting its stated objectives is monitored. The share price relative to NAV per share is monitored and the use of buy back authorities is considered on a regular basis. The marketing and distribution activity is actively reviewed. Proactive engagement with shareholders. Cost base The Company’s cost base could become uncompetitive, particularly in light of open- ended alternatives. The ongoing competitiveness of all service provider fees is subject to periodic benchmarking against their competitors. Annual consideration of management fee levels. Change during Risk Mitigation and management the year Investment Investment management The Manager’s investment strategy, if inappropriate, may result in the Company underperforming the market and/or peer group companies, leading to the Company and its objectives becoming unattractive to investors. Review of the Manager’s compliance with its agreed investment restrictions, investment performance and risk against investment objectives and strategy; relative performance; the portfolio’s risk pro le; and whether appropriate strategies are employed to mitigate any negative impact of substantial changes in markets. Annual review of the ongoing suitability of the Manager is undertaken. Custody Safe custody of the Company’s assets may be compromised through control failures by the depositary. The depositary reports on safe custody of the Company’s assets, including cash, and portfolio holdings independently reconciled with the Manager’s records. The review of audited internal controls reports covering custodial arrangements is undertaken. Regular reports from the depositary on its activities, including matters arising from custody operations is received. Gearing and leverage The Company has the option to make use of loan facilities or to use CFDs to invest in equities. These arrangements increase the funds available for investment through borrowing. While this has the potential to enhance investment returns in rising markets, in falling markets the impact could be detrimental to performance. Gearing is monitored daily and strict restrictions on borrowings are imposed: gearing continues to operate within pre-agreed limits so as not to exceed 25% of shareholders’ funds. The Company now uses long CFDs which are currently cheaper than bank loans and provide greater exibility. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 32 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Change during Risk Mitigation and management the year Compliance Accounting, tax and regulatory In order to continue to qualify as an investment trust, the Company must comply with the requirements of Section 1158 of the Corporation Tax Act 2010. Breaches of the UK Listing Rules, the Companies Act or other regulations with which the Company is required to comply, could lead to a number of detrimental outcomes. The con rmation of compliance with relevant laws and regulations by key service providers is reviewed. Shareholder documents and announcements, including the Company’s published annual report, are subject to stringent review processes. Procedures are established to safeguard against the disclosure of inside information. Change during Risk Mitigation and management the year Operational Service providers The Company has delegated certain functions to a number of service providers, principally the Manager, depositary and registrar. Failure of controls, and poor performance of any service provider could lead to disruption, reputational damage, or loss. Service providers are appointed subject to due diligence processes and with clearly-documented contractual arrangements detailing service expectations. Regular reporting is provided by key service providers and monitoring of the quality of their services provided. The Directors also receive presentations from the Manager, depositary and custodian, and the registrar on an annual basis. Review of annual audited internal controls reports from key service providers, including con rmation of business continuity arrangements and IT controls, and follow up of remedial actions as required. In respect of the transition of depositary, custodian and fund administration services from HSBC to J.P. Morgan, a detailed transition plan was put in place, closely monitored by the Investment Manager via a Risks, Assumptions, Issues and Dependencies (RAID) log. The Board received quarterly progress updates on the transition, with the Audit and Risk Committee Chair acting as the primary point of contact between update cycles. As part of the year end audit process, Deloitte have reviewed the migration of data from HSBC to J.P. Morgan and tested that nancial records were appropriately transferred. Technology risks Disruption to the operations of the Company’s service providers whether through inter alia, cyber attacks, failed software updates or data breaches, could impact the accurate reporting and monitoring of the Company’s nancial position and/or lead to loss of personal or con dential information. Service providers report on cyber risk mitigation and management at least annually, which includes con rmation of business continuity capability in the event of a cyber attack. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 33 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() ## Conclusion Viability statement The Directors have assessed the viability of the Company over a ve year period, taking into account the Company’s position at 31 July 2026 and the potential impacts of the principal risks and uncertainties it faces for the review period. The Directors have assessed the Company’s operational resilience and they are satis ed that the Company’s outsourced service providers will continue to operate e ectively, following the implementation of their business continuity plans. A period of ve years has been chosen as the Board believes that this re ects a suitable time horizon for strategic planning, taking into account the investment policy, liquidity of investments, potential impact of economic cycles, nature of operating costs, dividends, and availability of funding. In its assessment of the viability of the Company, the Directors have considered each of the Company’s principal risks and uncertainties detailed on pages 32 and 33 and in particular the impact of a signi cant fall in Japanese equity markets on the value of the Company’s investment portfolio. The Directors also considered the bene cial tax treatment the Company is eligible for as an investment trust. If changes to these taxation arrangements were to be made it would a ect the viability of the Company to act as an e ective investment vehicle. The Directors have considered the Company’s income and expenditure projections and the fact that the Company’s investments comprise of readily realisable securities which can be sold to meet funding requirements if necessary and on that basis consider that ve years is an appropriate time period. The Directors also considered a stress test in which the Company’s NAV dropped by 50% and noted that, based on the assumptions in the test, the Company would continue to be viable over a ve year period. Based on the Company’s processes for monitoring operating costs, the Board’s view that the Manager has the appropriate depth and quality of resource to achieve superior returns in the longer term, the portfolio risk pro le, limits imposed on gearing, counterparty exposure, liquidity risk and nancial controls, the Directors have concluded that there is a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the ve year period of their assessment. Going concern The Directors have assessed the principal risks, the impact of the emerging risks and uncertainties and the matters referred to in the viability statement. Based on the work the Directors have performed, they have not identi ed any material uncertainties relating to events or conditions that, individually or collectively, may cast signi cant doubt on the Company’s ability to continue as a going concern for the period assessed by the Directors, which is at least 12 months from the date the nancial statements were authorised for issue. By order of the Board Schroder Investment Management Limited Company Secretary 5 October 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 34 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() #### Section 4: Governance ## Section 4: Governance #### Board of Directors 36 #### Directors’ Report 38 #### Audit and Risk Committee Report 41 #### Management Engagement Committee Report 44 #### Nomination Committee Report 46 #### Directors’ Remuneration Report 48 #### Statement of Directors’ Responsibilities 51 Lake Aoki. Nagano prefecture 35 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() ## Board of Directors Chair Chair of the Nomination Committee Senior Independent Non-Executive Director Chair of the Management Engagement Committee #### Philip Kay #### Helena Coles Length of service: 4 years – appointed a Director in March 2022. Experience: Ms Coles has over 20 years’ experience in emerging markets and Asian equity investment, which includes co-founding a specialist investment boutique, Rexiter Capital Management, part owned by State Street Global Advisors. Prior to that, she was a fund manager at Kleinwort Benson Investment Management and started her career as a sell-side analyst. Helena is currently Senior Independent Director and Chair of the Remuneration Committee at JPMorgan Emerging Markets Investment Trust plc, Chair of the Management Engagement Committee at HgCapital Trust plc, Non-Executive Director and member of the Audit and Risk and Remuneration Committees at RIT Capital Partners plc, and a member of the Joseph Rowntree Charitable Trust Investment Committee. Areas of expertise: Ms Coles brings over 20 years’ expertise in emerging markets and Asian equity investment, with a background that includes co- founding an investment boutique, and she has held senior positions at leading nancial institutions, serving as a director and committee member across several listed and charitable organisations. Length of service: 4 years – appointed a Director in March 2022. Experience: Dr Kay has been involved with Japan for over 40 years and is a former Director of Fidelity Japan Trust plc. He has also served on the boards of Smith New Court plc and Schroder Securities Limited and is currently Chairman of Hansard Global plc, a London listed nancial services business. Areas of expertise: Dr Kay has more than four decades of expertise in the Japanese equity market and is an experienced investment professional. He has held board and senior leadership positions at a series of top nancial institutions, including Smith New Court, Schroders and Credit Suisse First Boston. He has more than 20 years’ experience of the UK investment trust sector. All Directors are non-executive and independent of the Manager. All Directors are members of the Audit and Risk Committee, the Management Engagement Committee and the Nomination Committee. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 36 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Independent Non-Executive Director Independent Non-Executive Director Chair of the Audit and Risk Committee #### Merryn Somerset Webb #### Samantha Wren Length of service: 2 years – appointed a Director on 4 July 2024. Experience: Ms Wren has extensive accounting and auditing experience. She has previously held the position of Chief Executive at IPGL Limited, a private investment rm where she held a number of directorships of investee companies across a variety of sectors. Before her tenure at IPGL, she served as a board member and Group Chief Financial O cer and Group Chief Operating O cer at NEX Group plc as well as holding various senior positions at ICAP plc. Earlier in her career, Ms Wren held various roles at The Rank Group plc, where she also served as a director of the Rank Pension Plan Trustee Limited. Ms Wren is a quali ed Chartered Management Accountant and holds an honours degree in Economics from the University of Portsmouth. She is currently a Director of AIM listed Chapel Down Group plc where she chairs the Remuneration Committee and a senior independent non-executive director and Audit Committee Chair of AIM listed Next 15 Group plc. Ms Wren was previously a non-executive director and chair of the nominations committee of Petershill Partners plc. Areas of expertise: Ms Wren has extensive experience in accounting and auditing, with a strong track record in senior executive roles at leading investment and nancial services rms, and currently serves as a director and committee chair across three companies either listed on the LSE or AIM. Length of service: 2 years – appointed a Director on 4 July 2024. Experience: Ms Somerset Webb is a seasoned nancial expert with a comprehensive understanding of investment trusts. Known for her role as Editor at Large, UK Wealth for Bloomberg and before that as a columnist for the FT, she regularly shares her nancial insights across various media. She was also Editor- in-Chief of MoneyWeek, the UK personal nance magazine. Ms Somerset Webb’s previous non-executive directorships include Murray Income Investment Trust plc, Baillie Gi ord Shin Nippon plc, Montanaro European Smaller Companies Trust plc, Netwealth Investments Limited and BlackRock Throgmorton Trust plc. Early in her career, Ms Somerset Webb worked in Tokyo as an institutional salesperson in Japanese equities for UBS Warburg, having previously studied Japanese at SOAS (University of London) and as a Daiwa scholar in Japan. Areas of expertise: Ms Somerset Webb is a nancial expert and commentator, bringing deep expertise in investment trusts and personal nance, with extensive experience as a senior columnist and editor, as well as wide-ranging board experience across the investment sector and a strong background in Japanese equities. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 37 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() ## Directors’ Report The Directors submit their report and the audited financial statements of the Company for the year ended 31 July 2026. Corporate governance statement The Company is committed to high standards of corporate governance and has implemented a framework for corporate governance which it considers to be appropriate for an investment trust. The Financial Conduct Authority requires all UK listed companies to disclose how they have applied the principles and complied with the provisions of the UK Corporate Governance Code 2024 (the “UK Code”) issued by the Financial Reporting Council (“FRC”). The UK Code is available on the FRC’s website: www.frc.org.uk. The Company is a member of the Association of Investment Companies (“AIC”), which has published its own Code of Corporate Governance to recognise the special circumstances of investment trusts (www.theaic.co.uk) as endorsed by the FRC. The Board has considered the principles and provisions of the AIC Code of Corporate Governance 2024 (the “AIC Code”), which addresses those set out in the UK Code, as well as setting out additional provisions on issues that are of speci c relevance to the Company as an investment trust. The AIC Code also includes an explanation of how the principles and provisions set out in the UK Code are adapted to make them relevant for investment companies. Directors and o cers Chair The Chair is an independent non-executive Director who is responsible for leadership of the Board and ensuring its e ectiveness in all aspects of its role. The Chair’s signi cant commitments are detailed on page 36. He has no con icting relationships. Senior Independent Director (“SID”) The SID acts as a sounding board for the Chair, meets with major shareholders as appropriate, provides a channel for any shareholder concerns regarding the Chair and takes the lead in the annual evaluation of the Chair by the independent Directors. Company Secretary Schroder Investment Management Limited provides company secretarial support to the Board and is responsible for assisting the Chair with Board meetings and advising the Board with respect to governance. The Company Secretary also manages the relationship with the Company’s service providers, except for the Manager. Shareholders wishing to lodge questions in advance of the AGM are invited to do so by writing to the Company Secretary at the address given on the back cover or by email: amcompanysecretary@schroders.com. Role and operation of the Board The Board of Directors, listed on pages 36 and 37 is the Company’s governing body; it sets the Company’s strategy and is collectively responsible to shareholders for its long-term success. The Board is responsible for appointing and subsequently monitoring the activities of the Manager The Board considers that reporting against the principles and provisions of the AIC Code provides more relevant information to shareholders. The Board con rms that the Company has complied throughout the year under review with the relevant provisions of the UK Code and the principles and provisions of the AIC Code except as set out below. The UK Code includes provisions relating to: the role of the chief executive; executive Directors’ • remuneration; the need for an internal audit function; • the Chair of the Board not being a member of the Audit • Committee; and the requirement to establish a Remuneration Committee. • The Board considers that these provisions, are not relevant to the Company, as an externally managed investment company. Furthermore, all of the Company’s day-to-day management and administrative functions are outsourced to third parties and the Company has no executive Directors, employees or internal operations. The Company has not therefore reported further in respect of these provisions. The Nomination Committee ful ls the function of the Remuneration Committee and considers any change in the Directors’ remuneration policy. A separate committee has not therefore been established. As permitted under the AIC Code, the Chair is a member of the Audit and Risk Committee. An explanation as to why this is considered appropriate is set out in the Audit and Risk Committee Report on page 41. and other service providers to ensure that the investment objective of the Company continues to be met. The Board also ensures that the Manager adheres to the investment restrictions set by the Board and acts within the parameters set by it in respect of any gearing. The Strategic Report on pages 23 to 34 sets out further detail of how the Board reviews the Company’s strategy, risk management and internal controls and also includes other information required for the Directors’ Report, and is incorporated by reference. A formal schedule of matters speci cally reserved for decision by the Board has been de ned and a procedure adopted for Directors, in the furtherance of their duties, to take independent professional advice at the expense of the Company. The Chair ensures that all Directors receive relevant management, regulatory and nancial information in a timely manner and that they are provided, on a regular basis, with key information on the Company’s policies, regulatory requirements and internal controls. The Board meets at least quarterly and receives and considers reports regularly from the Manager and other key advisers, and ad hoc reports and information are supplied to the Board as required. The Board is satis ed that it is of su cient size with an appropriate balance of diverse skills and experience, independence and knowledge of the Company, its sector, and the wider investment trust industry, to enable it to discharge its duties and responsibilities e ectively and that no individual or group of individuals dominates decision- making. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 38 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() The Board has approved a policy on Directors’ con icts of interest. Under this policy, Directors are required to disclose all actual and potential con icts of interest to the Board as they arise for consideration and approval. The Board may impose restrictions or refuse to authorise such con icts if deemed appropriate. No Directors have any connections with the Manager, shared directorships with other Directors or material interests in any contract which is signi cant to the Company’s business. Committees In order to assist the Board in ful lling its governance responsibilities, it has delegated certain functions to Committees. The roles and responsibilities of these Committees, together with details of work undertaken during the year under review, are outlined over the next few pages. The reports of the Audit and Risk Committee, Nomination Committee, and Management Engagement Committee are incorporated, and form part of, the Directors’ Report. E ective from 1 August 2026, the Manager shall be entitled to a fee, calculated on the lower of the Company’s market capitalisation and net asset value, at a rate of 0.70% on the rst £200 million and 0.65% on amounts in excess of £200 million. The fee shall accrue daily and be payable quarterly in arrears on 31 January, 30 April, 31 July and 31 October. The management fee payable in respect of the year ended 31 July 2026 amounted to £2,919,000 (2025: £2,293,000). A marketing support fee of £100,000 per annum is also payable to the Manager in respect of the promotion of the Company. The Manager is also entitled to receive a fee for providing administration, accounting and company secretarial to the Company. For those services, it receives an annual fee of £90,000. Details of all amounts payable to the Manager are set out in note 4 on page 63. The Management Engagement Committee has reviewed the performance of the Manager during the year under review and continues to consider that it has the appropriate depth of resource to deliver above average returns over the longer term and that the continuing appointment of the Manager on the terms agreed remains in the best interests of shareholders as a whole. Depositary With e ect from 5 September 2025, J.P. Morgan Europe Limited were appointed to provide depositary and custodian services to the Company. J.P. Morgan Europe Limited which is authorised by the Prudential Regulation Authority (“PRA”) and regulated by the FCA and the PRA, carries out certain duties of a depositary Key service providers The Board has adopted an outsourced business model and has appointed the following key service providers: Manager The Company is an Alternative Investment Fund as de ned by the AIFM Directive and has appointed Schroder Unit Trusts Limited (“SUTL”) as the Manager in accordance with the terms of an Alternative Investment Fund Manager (“AIFM”) agreement. The AIFM agreement, which is governed by the laws of England and Wales, can be terminated by either party on six months’ notice or on immediate notice in the event of certain breaches or the insolvency of either party. As at the date of this report no such notice had been given by either party. SUTL is authorised and regulated by the FCA and provides portfolio management, risk management, accounting and company secretarial services to the Company under the AIFM agreement. The Manager also provides general marketing support for the Company and manages relationships with key investors, in conjunction with the Chair, other Board members or the corporate broker as appropriate. The Manager has delegated investment management, administrative, accounting and company secretarial services to another wholly owned subsidiary of Schroders plc, Schroder Investment Management Limited. The Company Secretary has an independent reporting line to the Manager and distribution functions within Schroders. The Manager has in place appropriate professional indemnity cover. The Schroders Group manages £867.8 billion (as at 30 June 2026) on behalf of institutional and retail investors, nancial institutions and high net worth clients from around the world, invested in a broad range of asset classes across equities, xed income, multi-asset and alternatives. speci ed in the AIFM Directive including, in relation to the Company, as follows: safekeeping of the assets of the Company which are • entrusted to it; cash monitoring and verifying the Company’s cash ows; • and oversight of the Company and the Manager. • The Company, the Manager and the depositary may terminate the Depositary Agreement at any time by giving 90 days’ notice in writing. The Depositary may only be removed from o ce when a new Depositary is appointed by the Company. Registrar Equiniti Limited (“Equiniti”) has been appointed as the Company’s registrar. Equiniti’s services to the Company include share register maintenance (including the issuance, transfer and cancellation of shares as necessary), acting as agent for the payment of any dividends, management of company meetings (including the registering of proxy votes and scrutineer services as necessary), handling shareholder queries and correspondence and processing corporate actions. Share capital and substantial share interests As at 5 October 2026, the Company had 118,453,286 ordinary shares of 10p in issue. 5,201,674 shares were held in treasury. Accordingly, the total number of voting rights in the Company as at 5 October 2026 was 113,251,612. Details of changes to the Company’s share capital during the year are given in note 13 to the accounts on page 66. All shares in issue rank equally with respect to voting, dividends and any distribution on winding up. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 39 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() The Board noted that the Company’s shareholders appreciated the Board’s discount management. The Board agreed to request renewal of the authorities to issue and buy back shares as described on page 74. As at 31 July 2026 the following had interests in 3% or more of the voting rights attached to the Company’s issued share capital. Shares at % of total 31 July voting 2026 rights Allspring Global Investments 16,600,581 14.59 City of London Investment Management 15,885,970 13.96 Hargreaves Lansdown 8,280,026 7.28 Interactive Investor 8,145,044 7.16 1607 Capital Partners 6,044,315 5.31 Fidelity (platform) 4,376,023 3.85 Charles Stanley 4,144,813 3.62 Wesleyan Assurance 3,732,560 3.28 Rathbones 3,557,610 3.13 AJ Bell, Stockbrokers 3,468,733 3.05 Since the year end, City of London Investment Management have reduced their holding to 12.86%. Revenue, nal dividend and dividend policy The net revenue return for the year, before nance costs and taxation, was £8,844,000 (2025: 9,037,000). After deducting nance costs and taxation the revenue amount available for distribution to shareholders was £7,775,000 (2025: 8,020,000) equivalent to net revenue of 6.79p (2025: 6.91p) per ordinary share. Distributable capital reserve amounts will be used to cover the outstanding distribution amount not covered by the revenue reserve. During the nancial year, the Board followed its policy to declare dividends on a quarterly basis based upon 4% of the average NAV of the 12 months trailing the quarter. Provision of information to the auditor The Directors at the date of approval of this report con rm that, so far as each of them is aware, there is no relevant audit information of which the Company’s auditor is unaware; and each Director has taken all the steps that he or she ought to have taken as a Director in order to make himself or herself aware of any relevant audit information and to establish that the Company’s auditor is aware of that information. Directors’ attendance at meetings Four Board meetings are usually scheduled each year to deal with matters including: the setting and monitoring of investment strategy; approval of borrowings and/or cash positions; review of investment performance; the level of premium or discount of the Company’s shares to NAV per share and promotion of the Company; and services provided by third parties. Additional meetings of the Board are arranged as required. The number of scheduled meetings of the Board and its Committees held during the nancial year, and the attendance of individual Directors, is shown below. Whenever possible all Directors attend the AGM. Audit and Management Nomination Risk Engagement Director Board Committee Committee Committee Philip Kay 4/4 1/1 2/2 1/1 Helena Coles 4/4 1/1 2/2 1/1 Angus Macpherson 4/4 1/1 2/2 1/1 Samantha Wren 4/4 1/1 2/2 1/1 Merryn Somerset Webb 4/4 1/1 2/2 1/1 The Board is satis ed that the Chair and each of the other non-executive Directors commits su cient time to the a airs of the Company to ful l their duties. Directors’ and o cers’ liability insurance and indemnities Directors’ and o cers’ liability insurance cover was in place for the Directors throughout the year. The Company’s Articles of Association provide, subject to the provisions of UK legislation, an indemnity for Directors in respect of costs which they may incur relating to the defence of any proceedings brought against them arising out of their positions as Directors, in which they are acquitted or judgement is given in their favour by the court. This is a qualifying third party indemnity provision and was in place throughout the year under review and to the date of this report. By order of the Board Schroder Investment Management Limited Company Secretary 5 October 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 40 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Review of external auditors and their work Risk Management Internal controls Accounting policies and judgements Half year and Annual report ## Audit and Risk Committee Report The duties and responsibilities of the Committee, which include monitoring the integrity of the Company’s financial reporting and internal controls, are set out in further detail below, and may be found in the terms of reference which are available on the Company’s web pages: https://www.schroders.com/japantrust. All Directors are members of the Committee and Samantha Wren acts as Audit and Risk Committee Chair. The Board has satis ed itself that at least one of the Committee’s members has recent and relevant nancial experience and that the Committee as a whole has competence relevant to the sector in which the Company operates. The AIC Code permits the Chair of the Board to be a member of the Audit Committee of an investment trust. Therefore, it is considered appropriate for the Chair of the Board, who was independent on appointment, to be a member of the Committee. Risk management and internal controls Principal and emerging risks and uncertainties To establish a process for identifying, assessing, managing and monitoring the principal and emerging risks of the Company and to explain how these are managed or mitigated. The Committee is responsible for reviewing the adequacy and e ectiveness of the Company’s internal controls and the whistleblowing procedures operated by the AIFM and other services providers. Internal controls To monitor the adequacy and e ectiveness of the risk management and internal control systems of the Company’s third party services providers, including the Manager, as illustrated in the diagram on the next page. Financial reports and valuation Financial statements To monitor the integrity of the nancial statements of the Company and any formal announcements relating to the Company’s nancial performance and valuation. To also review the half-year report and accounts. Going concern and viability To review the position and make recommendations to the Board in relation to whether it considers it appropriate to adopt the going concern basis of accounting in preparing its annual and half-year report and accounts. The Committee is also responsible for reviewing the disclosures made by the Company in the viability statement. Audit Audit results To discuss any matters arising from the audit and recommendations made by the auditor. Auditor appointment, independence and performance To make recommendations to the Board, in relation to the appointment, reappointment, e ectiveness and removal of the external auditor, to review their independence, and to approve their remuneration and terms of engagement. Reviewing and agreeing the audit plan and engagement letter. Approach The committee’s key roles and responsibilities are set out in the table below. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 41 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Risk management and internal controls Principal risks Reviewed the principal and emerging risks faced by the Company together with the systems, processes and oversight in place to identify, manage and mitigate. Service provider controls The operational controls maintained by the Manager, administrator, depositary and registrar were reviewed and included consideration of: a summary, prepared by the AIFM, following review of the • internal controls reports prepared bi-annually by J.P. Morgan Europe Limited and HSBC for the period of the nancial year that they were still appointed. The reports were in respect of the European Traditional Fund Services, Global Custody Services and Information Technology Services operations provided; a summary, prepared by the AIFM following review, of the • internal controls reports prepared annually by SIM; and the Service Organisation Controls report on internal • controls of Equiniti Share Registration Services. All internal controls reports were reported on by independent external accountants. Internal controls and risk management Consideration of several key aspects of internal control and risk management operating within the Manager, administrator, depositary and registrar, including assurance reports and presentations on these controls. Financial reports and valuation Recognition of investment income Considered dividends received against forecast and the allocation of special dividends to income or capital. Valuation and existence of holdings The Company’s assets are principally invested in quoted equities. The Board reviews detailed reports on portfolio holdings on a quarterly basis. The Committee reviewed internal control reports from the AIFM in the year, reporting on the systems and controls around the pricing and valuation of securities. Calculation of the investment management fee and performance fee Consideration of methodology used to calculate the fees, matched against the criteria set out in the AIFM agreement. Allocation rate of indirect expenses to capital Consideration of policy of allocating certain indirect expenses to capital. Further details in note 1(e). Overall accuracy of the report and nancial statements Consideration of the annual report and nancial statements and the letter from the Manager in support of the letter of representation to the auditor. Audit Meetings with the auditor The auditor attended meetings of the Committee to present their audit plan and the ndings of the audit. The Committee met the auditor without representatives of the Manager present. In addition to attending Committee meetings, the Chair of the Audit and Risk Committee met separately with the auditor twice during the year. Effectiveness of the independent audit process and auditor performance The e ectiveness of the independent audit rm and audit process was evaluated prior to making a recommendation to the Board that the auditor should be re-appointed at the forthcoming AGM. The Committee evaluated the auditor’s performance against agreed criteria including: quali cation; knowledge, expertise and resources; independence policies; e ectiveness of audit planning; adherence to auditing standards. Overall competence was also considered, alongside feedback from the Manager on the audit process. The professional scepticism of the auditor, during the audit process was questioned and the Committee was satis ed with the auditor’s replies. Auditor independence Deloitte LLP has provided audit services to the Company since it was appointed on 19 June 2019. The auditors are required to rotate the senior statutory auditor every ve years. There are no contractual obligations restricting the choice of external auditors. This is the third year that Michael Caullay has conducted the audit of the Company’s nancial statements. Application during the year The Committee met twice during the year under review and the following table sets out how the Committee discharged its duties during the year under review and up until the approval of this report. Further details on attendance can be found on page 40. Signi cant issues identi ed during the year under review and key matters communicated by the auditor during reporting are included below. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 42 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Recommendations made to, and approved by, the Board: The Committee recommended that the Board • approve the half year report and the annual report and nancial statements. The Committee recommended the adoption of the • going concern basis of accounting in the report and nancial statements and the explanations set out in the viability statement. As a result of the work performed, the Committee has • concluded that the annual report for the year ended 31 July 2026, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company’s position, performance, business model and strategy and has reported on these ndings to the Board. The Board’s conclusions in this respect are set out in the Statement of Directors’ Responsibilities on page 51. Having reviewed the performance of the auditor, as • previously described, the Committee was satis ed that there were no circumstances that a ected the independence and objectivity of the auditor and therefore considered it appropriate to recommend the auditor’s re-appointment. Resolutions to re-appoint Deloitte as auditor to the Company, and to authorise the Directors to determine their remuneration will be proposed at the AGM. Risk management and internal controls Compliance with the investment trust qualifying rules in S1158 of the Corporation Tax Act 2010 Consideration of the Manager’s report con rming compliance. Financial reports and valuation Fair, balanced and understandable Reviewed the annual report and nancial statements to advise the Board whether it was fair, balanced and understandable. Reviewed whether performance measures were re ective of the business, whether there was adequate commentary on the Company’s strengths and weaknesses and that the annual report and nancial statements, taken as a whole was consistent with the Board’s view of the operation of the Company. Going concern and viability Reviewed the impact of risks on going concern and longer- term viability. Audit Audit results Met with and reviewed a comprehensive report from the auditor which detailed the results of the audit, compliance with regulatory requirements, safeguards that have been established, and on their own internal quality control procedures. Provision of non-audit services by the auditor Reviewed the FRC’s Guidance on Audit Committees and formulated a policy on the provision of non-audit services by the Company’s auditor. The Committee has determined that the Company’s appointed auditor will not be considered for the provision of certain non-audit services, such as accounting and preparation of the nancial statements, internal audit and custody. The auditor may, if required, provide other non-audit services which will be judged on a case-by-case basis. The auditor did not provide any non-audit services to the Company during the year. Consent to continue as auditor Deloitte LLP indicated to the Committee its willingness to continue to act as auditor. By order of the Board Samantha Wren Chair of the Audit and Risk Committee 5 October 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 43 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Continuous improvement objective Evaluation of Manager Evaluation of key service providers ## Management Engagement Committee Report The Management Engagement Committee is responsible for (1) the monitoring and oversight of the Manager’s performance and fees, and confirming the Manager’s ongoing suitability, and (2) reviewing and assessing the Company’s other service providers, including reviewing their fees. All Directors are members of the Committee. Helena Coles is the Chair of the Committee. Its terms of reference are available on the Company’s web pages: https://www.schroders.com/japantrust. Approach The committee’s key roles and responsibilities are set out in the following table. Oversight of the Manager The committee: reviews the Manager’s performance, over the short and long term, against the Reference • Index, peer group and the market; considers the reporting it has received from the Manager throughout the year, and the • reporting from the Manager to the shareholders; assesses management fees including the performance fee on an absolute and relative • basis, receiving input from the Company’s broker, including peer group and industry gures, as well as the structure of the fees; reviews the appropriateness of the Manager’s contract, including terms, such as the • notice period; visits the Manager’s Asian o ces periodically to meet with key personnel from the • Investment Manager; and assesses whether the Company receives appropriate administrative, accounting, • company secretarial and marketing support from the Manager. Oversight of other service providers The Committee reviews the performance and competitiveness of the following service providers on at least an annual basis: depositary and custodian; • corporate broker; • registrar; and • lender. • The Committee also receives a report from the Company Secretary on ancillary service providers, and considers any recommendations. The Committee notes the Audit and Risk Committee’s review of the auditor. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 44 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Recommendations made to, and approved by, the Board: • That the ongoing appointment of the Manager on the terms of the AIFM agreement, including the fee, was in the best interests of shareholders as a whole. • That the performance of the Company’s service providers remained satisfactory. Oversight of the Manager Oversight of other service providers The annual review of each of the service providers was satisfactory. The Committee noted that the Audit and Risk Committee had undertaken a detailed evaluation of the Manager, registrar, and depositary and custodian’s internal controls. Application during the year Oversight of the Manager The Committee undertook a detailed review of the Manager’s performance and agreed that it has the appropriate depth and quality of resource to deliver superior returns over the longer term. The Committee also reviewed the terms of the AIFM agreement and agreed they remained t for purpose. The Committee reviewed the other services provided by the Manager and agreed they were satisfactory. The Committee reviewed the progress of the Company with respect to the conditional tender o er conditions and noted that for the nancial year the Company had delivered performance in excess over the conditions. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 45 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Application of succession policy Selection Induction Annual evaluation Annual review of succession policy ## Nomination Committee Report The Nomination Committee is responsible for (1) the recruitment, selection and induction of Directors, (2) their assessment during their tenure, (3) the Board’s succession, and (4) Directors’ fees. All Directors are members of the Committee. Philip Kay is the Chair of the Committee. Its terms of reference are available on the Company’s web pages: https://www.schroders.com/japantrust. Selection and ongoing assessment of Directors Approach The committee’s key roles and responsibilities are set out in the following table. Selection and induction Committee prepares a job speci cation for each role, and • an independent recruitment rm is appointed. For the Chair and the Chairs of Committees, the Committee considers current Board members too. Job speci cation outlines the knowledge, professional • skills, personal qualities and experience requirements. Potential candidates assessed against the Company’s • diversity policy. Committee discusses the long list, invites a number of • candidates for interview and makes a recommendation to the Board. Committee reviews the induction and training of new • Directors. Succession The Board’s succession policy is that Directors’ tenure will • be for no longer than nine years, except in exceptional circumstances, and that each Director will be subject to annual re-election at the AGM. Committee reviews the Board’s current and future needs • at least annually. Should any need be identi ed the Committee will initiate the selection process. Committee oversees the handover process for retiring • Directors. Board evaluation and Directors’ fees Committee assesses each Director annually. • Evaluation focuses on whether each Director continues • to demonstrate commitment to their role and provides a valuable contribution to the Board during the year, taking into account time commitment, independence, con icts and training needs. Following the evaluation, the Committee provides a • recommendation to shareholders with respect to the annual re-election of Directors at the AGM. All Directors retire at the AGM and their re-election is • subject to shareholder approval. Committee reviews Directors’ fees, taking into account • comparative data and reports to shareholders. Any proposed changes to the remuneration policy for • Directors are discussed and reported to shareholders. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 46 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Selection and induction In accordance with the Board’s succession planning, the • Committee is also seeking to appoint a director with the appropriate skills, experience and contribution to diversity. The Committee evaluated proposals from a number of • search rms. Longwater Partners was selected to conduct the search. The selection process is underway. The appointment of • a new non-executive director will be announced in due course. Application during the year Succession The Committee reviewed the succession policy and • agreed it was still t for purpose. The Committee considered the future needs of the • Company and the e ect of individual Directors leaving and whether this would create a skills/knowledge/experience gap. Helena Coles was appointed as Senior Independent • Director and Chair of the Management Engagement Committee on 14 July 2026. Board evaluation and Directors’ fees The annual Board evaluation, including evaluation of the • Committees was undertaken during the nancial year. The Committee also reviewed each Director’s time • commitment and independence by reviewing a complete list of appointments, including pro bono not for pro t roles, to ensure that each Director remained free from con ict and had su cient time available to discharge each of their duties e ectively. The SID led the review of these matters in respect of the Chair. The Committee considered each Director’s contributions, • and noted that in addition to extensive experience as professionals and non-executive Directors, each Director had valuable skills and experience, as detailed in their biographies on pages 36 and 37. All Directors were considered to be independent in • character and judgement. Based on its assessment, the Committee provided • individual recommendations for each Director’s election or re-election. The Committee reviewed Directors’ fees, using external • benchmarking, and recommended an increase in Directors’ fees, as detailed in the remuneration report. Recommendations made to, and approved by, the Board: • That Helena Coles be appointed as Senior Independent Director and Chair of the Management Engagement Committee. • That Longwater Partners be appointed to facilitate a search process for the appointment of an additional non executive director. • That all Directors continue to demonstrate commitment to their roles, provide a valuable contribution to the deliberations of the Board, remuneration of the Directors was appropriate and Directors remain free from con icts with the Company and its Directors, so should all be recommended for election or re-election at the AGM. • That Directors’ fees be increased to £45,000 for the Chair, £33,500 for non-executive Directors, £34,500 for the Senior Independent Director, and £38,500 for the Audit and Risk Committee Chair. • That the Remuneration Report be put to shareholders for approval. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 47 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() ## Directors’ Remuneration Report Introduction The following remuneration policy is currently in force and is subject to a binding vote every three years. The next vote will take place at the upcoming AGM and the current policy provisions will apply until that date. An ordinary resolution to approve the Directors’ Remuneration Policy will be put to Shareholders at the AGM and language has been added to the policy to con rm that the Senior Independent Director will also receive fees at a higher rate than other Directors to cover their additional responsibilities. The below Directors’ annual report on remuneration is subject to an annual advisory vote. An ordinary resolution to approve this report will be put to shareholders at the forthcoming AGM. At the AGM held on 10 December 2023, 99.96% of the votes cast (including votes cast at the Chair’s discretion) in respect of approval of the Directors’ remuneration policy were in favour, while 0.04% were against and 23,581 votes were withheld. At the AGM held on 1 December 2025, 99.96% of the votes cast (including votes cast at the Chair’s discretion) in respect of approval of the Directors’ remuneration report for the year ended 31 July 2025 were in favour, while 0.04% were against and 29,512 votes were withheld. Directors’ remuneration policy The determination of the Directors’ fees is a matter considered by the Nomination Committee and the Board. It is the Nomination Committee’s policy to determine the level of Directors’ remuneration having regard to amounts payable to non-executive Directors in the industry generally, the role that individual Directors ful l in respect of Board and Committee responsibilities, and time committed to the Company’s a airs, taking into account the aggregate limit of fees set out in the Company’s Articles of Association. The Chair of the Board, Chair of the Audit and Risk Committee and the Senior Independent Director receive fees at a higher rate than the other Directors to re ect their additional responsibilities. Directors’ fees are set at a level to recruit and retain individuals of su cient calibre, with the level of knowledge, experience and expertise necessary to promote the success of the Company in reaching its short and long-term strategic objectives. Any Director who performs services which in the opinion of the Directors are outside the scope of the ordinary duties of a Director, may be paid additional remuneration to be determined by the Directors, subject to the previously mentioned fee cap. The Board and its Committees are exclusively comprised of non-executive Directors. No Director past or present has an entitlement to a pension, and the Company has not, and does not intend to operate a share scheme for Directors or to award any share options or long-term performance incentives to any Director. No Director has a service contract with the Company. However, Directors have a letter of appointment. Directors do not receive exit payments and are not provided with any compensation for loss of o ce. No other payments are made to Directors other than the reimbursement of reasonable out-of-pocket expenses incurred in attending to the Company’s business. Implementation of policy The terms of Directors’ letters of appointment are available for inspection at the Company’s registered o ce address during normal business hours and during the AGM at the location of such meeting. The Board did not seek the views of shareholders in setting this policy. Any comments on the policy received from shareholders would be considered on a case-by-case basis. As the Company does not have any employees, no employee pay and employment conditions were taken into account when setting this policy and no employees were consulted in its construction. Directors’ fees are reviewed annually and take into account research from third parties on the fee levels of Directors of peer group companies, as well as industry norms and factors a ecting the time commitment expected of the Directors. New Directors are subject to the provisions set out in this remuneration policy. Directors’ annual report on remuneration This report sets out how the Directors’ remuneration policy was implemented during the year ended 31 July 2026. Fees paid to Directors The following amounts were paid by the Company to Directors for their services in respect of the year ended 31 July 2026 and the preceding nancial year. Directors’ remuneration is all xed; they do not receive any variable remuneration. The performance of the Company over the nancial year is presented in the Performance Summary at the start of the report. Fees Taxable bene ts 1 Total 2026 2025 2026 2025 2026 2025 Director £ £ £ £ £ £ Philip Kay 43,000 41,500 98 – 43,098 41,500 Helena Coles 32,500 31,000 – – 32,500 31,000 Alan Gibbs 2 – 11,168 – – – 11,168 Angus Macpherson 3,4,6 32,000 31,000 8,550 – 40,550 31,000 Belinda Richards 5 – 118 – – – 118 Samantha Wren 37,000 35,559 61 175 37,061 35,734 Merryn Somerset Webb 6 32,500 31,135 1,891 1,210 34,391 32,345 Total 177,000 181,480 10,600 1,385 187,600 182,865 1 Comprise amounts reimbursed for expenses incurred in carrying out business for the Company, and which have been grossed up to include PAYE and NI contributions. 2 Resigned from the Board on 10 December 2024. 3 The taxable bene ts paid in 2026 covered expenses for the current year and prior year. 4 Resigned from the Board on 15 July 2026. 5 Resigned as Audit Chair, and from the Board on 3 July 2024. 6 The Director resides in Scotland, and incurred taxable expenses associated with attending Board and Committee meetings. The information in the above table has been audited. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 48 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() The table below compares the remuneration payable to Directors, to distributions made to shareholders during the year under review and the prior period. In considering these gures, shareholders should take into account the Company’s investment objective. Distributions to shareholders (share buy-backs) vs Directors’ remuneration Year ended Year ended 31 July 31 July 2026 2025 Change £’000 £’000 % Remuneration payable to Directors 188 183 2.7 Distributions paid to shareholders: – Dividends paid during the year 13,863 22,490 – Share buy backs 5,379 4,789 Total distributions paid to shareholders 19,242 27,279 (29.5) Consideration of matters relating to Directors’ remuneration Following the review of Directors’ fees by the Nomination Committee, it was proposed to increase to all Directors’ fees by 3% (rounded up to the nearest £500), to commence from 1 August 2026. (Chair £45,000, Audit and Risk Committee Chair £38,500, Senior Independent Director, £34,500, non-executive Directors £33,500). The Board approved this recommendation. The members of the Board at the time that remuneration levels were considered were as set out on pages 36 and 37. Although no external advice was sought in considering the levels of Directors’ fees, information on fees paid to Directors of other investment trusts managed by Schroders and peer group companies provided by the Manager and corporate broker was taken into consideration, as was independent third party research. Annual percentage change in directors’ remuneration Change in annual fee over years ended 31 July 2026 2025 2024 2023 2022 Director % % % % % Philip Kay (Chair) 3.9 1.8 12.1 n/a n/a Anja Balfour n/a n/a n/a n/a 9.8 Helena Coles 4.8 2.1 3.1 n/a n/a Alan Gibbs n/a (63.0) 3.1 0.5 7.5 Angus Macpherson 1,2,3 30.8 (32.8) 3.1 2.7 5.2 Belinda Richards n/a (99.6) (5.2) 2.0 4.5 Samantha Wren 3.7 n/a n/a n/a n/a Merryn Somerset Webb 1 6.3 n/a n/a n/a n/a 1 The Director, who resides in Scotland, incurred taxable expenses associated with attending Board and Committee meetings. 2 The taxable bene ts in 2024 covered expenses spanning a period of ve years since appointment. 3 The taxable bene ts paid in 2026 covered expenses for the current year and prior year. Change in annual remuneration payable 2026 2025 2024 2023 2022 Director £ £ £ £ £ Philip Kay (Chair) 43,098 41,500 40,766 35,786 9,640 Anja Balfour – – – 15,988 41,327 Helena Coles 32,500 31,000 30,367 29,167 9,487 Alan Gibbs – 11,168 30,178 29,167 29,024 Angus Macpherson 1,2,3 40,550 31,000 46,125 29,167 28,404 Belinda Richards – 118 31,441 33,167 32,504 Samantha Wren 37,061 35,734 2,672 – – Merryn Somerset Webb 1 34,391 32,345 2,250 – – 187,600 182,865 183,799 172,442 150,386 1 The Director, who resides in Scotland, incurred taxable expenses associated with attending Board and Committee meetings. 2 The taxable bene ts in 2024 covered expenses spanning a period of ve years since appointment. 3 The taxable bene ts paid in 2026 covered expenses for the current year and prior year. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 49 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() 10 year performance of share price and benchmark total returns As at 31 July each year Source: Morningstar/Thomson Reuters. Rebased to 100 at 31 July 2016. De nitions of terms and performance measures are provided on pages 78 and 79. On behalf of the Board Philip Kay Chair 5 October 2026 Share price total return Benchmark total return 50 100 150 200 250 300 350 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Directors The Company’s Articles of Association do not require Directors to own shares in the Company. The number of shares held by Directors, including those of connected persons, at the beginning and end of the nancial year under review, are set out below. At 31 July At 31 July 2026 2025 Helena Coles 9,294 8,432 Philip Kay 26,527 26,527 Samantha Wren 1,650 1,650 Merryn Somerset Webb 7,866 7,866 The information in the above table has been audited. Since the year end, Helena Coles and persons closely associated with her have purchased 64 shares in the Company, through a Dividend Reinvestment Plan. Performance A graph showing the Company’s share price total return compared with the Reference Index over the last 10 years is set out on the next page. The Reference Index has been selected as an appropriate comparison based on the composition of the Company’s investment portfolio. Share Price vs Benchmark Graph To promote transparency and uphold e ective governance, the Board includes a comparison of the Company’s share price performance against its benchmark. This re ects the Board’s role in overseeing investment performance, managing the discount, and ensuring alignment with the Company’s objectives. The inclusion of this graph supports clear communication with shareholders and aligns with best practice guidance from the Association of Investment Companies (AIC). #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 50 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() ## Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and regulations. The Directors are responsible for keeping adequate accounting records that are su cient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the nancial position of the Company and enable them to ensure that the nancial statements and the Directors’ remuneration report comply with the Companies Act 2006. The Directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Manager is responsible for the maintenance and integrity of the webpage dedicated to the Company. Legislation in the United Kingdom governing the preparation and dissemination of nancial statements may di er from legislation in other jurisdictions. Company law requires the Directors to prepare nancial statements for each nancial year. Under that law the Directors have prepared the nancial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law). Under company law the Directors must not approve the nancial statements unless they are satis ed that they give a true and fair view of the state of a airs of the Company and of the return or loss of the Company for that period. In preparing the nancial statements, the Directors are required to: select suitable accounting policies and then apply them • consistently; state whether applicable United Kingdom Accounting • Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the nancial statements; make judgements and accounting estimates that are • reasonable and prudent; and prepare the nancial statements on the going concern • basis unless it is inappropriate to presume that the company will continue in business. Directors’ statement Each of the Directors, whose names and functions are listed in the Board of Directors on pages 36 and 37 con rm that, to the best of their knowledge: the Company nancial statements, which have been • prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law), give a true and fair view of the assets, liabilities, nancial position and pro t of the Company; the Strategic Report includes a fair review of the • development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces; and that the annual report and nancial statements, taken as • a whole, are fair, balanced and understandable and provides the information necessary for shareholders to assess the Company’s performance, business model and strategy. On behalf of the Board Philip Kay Chair 5 October 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 51 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() #### Section 5: Financials Osaka ## Section 5: Financials #### Independent Auditor’s Report 53 #### Statement of Comprehensive Income 59 #### Statement of Changes in Equity 59 #### Statement of Financial Position 60 #### Notes to the Financial Statements 61 52 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 53 Schroder Japan Trust plc Annual Report and Financial Statements 2026 2. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the nancial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the nancial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public interest entities, and we have ful lled our other ethical responsibilities in accordance with these requirements. We con rm that we have not provided any non-audit services prohibited by the FRC’s Ethical Standard to the company. We believe that the audit evidence we have obtained is su cient and appropriate to provide a basis for our opinion. 3. Summary of our audit approach Key audit matter The key audit matter that we identi ed in the current year was the valuation and existence of listed investments. The key audit matter is identi ed as follows: Similar level of risk Materiality The materiality that we used in the current year was £4.63m which was determined on the basis of 1% of net assets as at 31 July 2026. Scoping We performed our audit scoping based upon quantitative and qualitative risk assessment factors for each account balance recorded as at 31 July 2026. Signi cant changes in our approach There have been no signi cant changes to our audit approach in the current year. #### Report on the audit of the financial statements 1. Opinion In our opinion the nancial statements of Schroder Japan Trust plc (the ‘company’): • give a true and fair view of the state of the company’s a airs as at 31 July 2026 and of its return for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and the Statement of Recommended Practice issued by the Association of Investment Companies in July 2022 “Financial Statements of Investment Trust Companies and Venture Capital Trusts”; and • have been prepared in accordance with the requirements of the Companies Act 2006. We have audited the nancial statements which comprise: • the statement of comprehensive income; • the statement of changes in equity; • the statement of nancial position; and • the related notes 1 to 20. The nancial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice) and the Statement of Recommended Practice issued by the Association of Investment Companies in July 2022 “Financial Statements of Investment Trust Companies and Venture Capital Trusts”. 53 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ## Independent Auditor’s Report to the members of Schroder Japan Trust plc ![]() How the scope of our audit responded to the key audit matter Key audit matter description Key observations 54 Schroder Japan Trust plc Annual Report and Financial Statements 2026 5.1. Valuation and existence of listed investments The listed investments of the company of £438.7m (2025: £327.2m) make up 95% (2025: 94%) of total assets of the company at 31 July 2026. There is a risk that the listed investments may not be valued correctly or may not represent the assets of the company by applying an incorrect share price or number of shares. This could result in material misstatement of the net asset value of the company. Given the nature and size of the balance and its importance to the company, we have considered that there is a potential risk of fraud in this area. See the accounting policy in note 1(b) of the Financial Statements and also note 10 of the Financial Statements. We performed the following procedures to address the key audit matter identi ed: • with involvement of our nancial instruments specialists, assessed the valuation methodology applied in valuation of listed investments; • inspected the internal controls report over the administrator to obtain an understanding of relevant controls relating to existence and valuation of listed investments; • agreed 100% of the company’s listed investment portfolio at the year end to con rmations received directly from the depositary, J.P. Morgan; and • agreed 100% of the closing prices of listed investments on the investment ledger at year end to closing prices published by an independent pricing source. Based on the work performed, we concluded that the valuation and existence of listed investments are appropriate. 4. Conclusions relating to going concern In auditing the nancial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the nancial statements is appropriate. Our evaluation of the directors’ assessment of the company’s ability to continue to adopt the going concern basis of accounting included: Evaluating as part of our risk assessment the nature of the company, its business model and related risks, the • requirements of the applicable nancial reporting framework and the system of internal control; Assessing the underlying data and appropriateness of key assumptions used to make the going concern assessment, • including assessment of the accuracy of forecasts and evaluation of the directors’ plans for future actions in relation to their going concern assessment; Assessing the liquidity and ability of the Investment Manager to trade in the investment portfolio to cover operational • expenditure as appropriate; and Assessing the appropriateness of the going concern disclosure in note 1 to the nancial statements. • Based on the work we have performed, we have not identi ed any material uncertainties relating to events or conditions that, individually or collectively, may cast signi cant doubt on the company’s ability to continue as a going concern for a period of at least 12 months from when the nancial statements are authorised for issue. In relation to the reporting on how the company has applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the directors’ statement in the nancial statements about whether the directors considered it appropriate to adopt the going concern basis of accounting. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. 5. Key audit matter The key audit matter communicated below is a matter that, in our professional judgement, was of most signi cance in our audit of the nancial statements of the current year and included the most signi cant assessed risks of material misstatement (whether or not due to fraud) that we identi ed. This matter had the greatest e ect on: the overall audit strategy; the allocation of resources in the audit; and directing the e orts of the engagement team. This matter was addressed in the context of our audit of the nancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter. #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 54 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() Basis for determining materiality Rationale for the benchmark applied 0030406/30(-2\*4($067$3,54 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 55 Schroder Japan Trust plc Annual Report and Financial Statements 2026 6.2. Performance materiality We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and undetected misstatements exceed the materiality for the nancial statements as a whole. Performance materiality was set at 70% of materiality for the 2026 audit (2025: 70%). In determining performance materiality, we considered the following factors: a. The company’s structure, its operating model and the quality of the control environment. b. The continuity in place within the business from the previous year with both management and the administrator. c. Our experience from prior period audits, where there has not been a history of uncorrected misstatements or control de ciencies. 6.3. Error reporting threshold We agreed with the Audit and Risk Committee that we would report to the Committee all audit di erences in excess of £0.23 million (2025: £0.17 million), as well as di erences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Audit and Risk Committee on disclosure matters that we identi ed when assessing the overall presentation of the nancial statements. 7. An overview of the scope of our audit 7.1. Scoping Our audit scope was determined by obtaining an understanding of the company and its environment, including internal controls, and assessing the risks of material misstatement. Audit work to respond to the risks of material misstatement was performed directly by the audit engagement team. 7.2. Our consideration of the control environment In assessing the company’s control environment, we considered controls in place at the company’s service organisations, which act as the company’s administrators. As part of this, we obtained an understanding of the relevant controls in place by reviewing the System and Organisation Controls (SOC 1) reports of the service organisations, speci cally those relating to nancial reporting and the valuation and existence of listed investments. We also obtained an understanding of the general IT controls in place by reviewing the controls report of the service organisations in respect of general IT controls. Further, we obtained an understanding of relevant business processes and controls that address the risk of material misstatement in nancial reporting. 6. Our application of materiality 6.1. Materiality We de ne materiality as the magnitude of misstatement in the nancial statements that makes it probable that the economic decisions of a reasonably knowledgeable person would be changed or in uenced. We use materiality both in planning the scope of our audit work and in evaluating the results of our work. Based on our professional judgement, we determined materiality for the nancial statements as a whole as follows: Materiality £4.63m (2025: £3.45m) 1% of net assets (2025: 1% of net assets) We have used net assets as our materiality benchmark as we consider it to be the most relevant indicator of the company’s performance for the users of the nancial statements, as well as being a key driver of shareholder value. ![]() 56 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 10. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the nancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to in uence the economic decisions of users taken on the basis of these nancial statements. A further description of our responsibilities for the audit of the nancial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 11. Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. 11.1. Identifying and assessing potential risks related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: • the nature of the industry and sector, control environment and business performance including the design of the company’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets; • results of our enquiries of management, the directors and the Audit and Risk Committee about their own identi cation and assessment of the risks of irregularities, including those that are speci c to the company’s sector; • any matters we identi ed having obtained and reviewed the company’s documentation of its policies and procedures relating to: o identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; o detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; o the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations. 7.3. Our consideration of climate-related risks In planning our audit, we considered the potential impact of climate change on the business and its nancial statements. The company continues to develop its model for assessing and assigning a score on existing and potential investments based on an assessment of the potential impacts of environmental, social and governance (“ESG”) related risks, including climate change, as outlined on page 19-20 of the annual report. As a part of our audit, we obtained an understanding of the entity’s process of identifying climate-related risks and the impact on the company’s nancial statements. We also read the climate related disclosures in the annual report to consider whether they are materially consistent with the nancial statements and our knowledge obtained in the audit. 8. Other information The other information comprises the information included in the annual report, other than the nancial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the nancial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the nancial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the nancial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 9. Responsibilities of directors As explained more fully in the statement of directors’ responsibilities, the directors are responsible for the preparation of the nancial statements and for being satis ed that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of nancial statements that are free from material misstatement, whether due to fraud or error. In preparing the nancial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. ![]() #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 57 Schroder Japan Trust plc Annual Report and Financial Statements 2026 We also communicated relevant identi ed laws and regulations and potential fraud risks to all engagement team members including internal specialists and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Report on other legal and regulatory requirements 12. Opinions on other matters prescribed by the Companies Act 2006 In our opinion the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006. In our opinion, based on the work undertaken in the course of the audit: • the information given in the strategic report and the directors’ report for the nancial year for which the nancial statements are prepared is consistent with the nancial statements; and • the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identi ed any material misstatements in the strategic report or the directors’ report. 13. Corporate Governance Statement The UK Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance Statement relating to the company’s compliance with the provisions of the UK Corporate Governance Code speci ed for our review. Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the nancial statements and our knowledge obtained during the audit: • the directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties identi ed set out on page 34; • the directors’ explanation as to its assessment of the company’s prospects, the period this assessment covers and why the period is appropriate set out on page 34; • the directors’ statement on fair, balanced and understandable set out on page51; • the board’s con rmation that it has carried out a robust assessment of the emerging and principal risks set out on page 31; • the matters discussed among the audit engagement team and relevant internal specialists, including tax, IT, and nancial instruments specialists regarding how and where fraud might occur in the nancial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identi ed the greatest potential for fraud in the following area: valuation and existence of listed investments. In common with all audits under ISAs (UK), we are also required to perform speci c procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct e ect on the determination of material amounts and disclosures in the nancial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK Listing Rules, and Investment Trust Tax Legislation. In addition, we considered provisions of other laws and regulations that do not have a direct e ect on the nancial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. 11.2. Audit response to risks identi ed As a result of performing the above, we identi ed the valuation and existence of listed investments as a key audit matter related to the potential risk of fraud. The key audit matters section of our report explains the matter in more detail and also describes the speci c procedures we performed in response to that key audit matter. In addition to the above, our procedures to respond to risks identi ed included the following: • reviewing the nancial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct e ect on the nancial statements; • enquiring of management, and the Audit and Risk Committee concerning actual and potential litigation and claims; • performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; • reading minutes of meetings of those charged with governance; and • in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any signi cant transactions that are unusual or outside the normal course of business. ![]() 58 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 15.2. Consistency of the audit report with the additional report to the Audit and Risk Committee Our audit opinion is consistent with the additional report to the Audit and Risk Committee we are required to provide in accordance with ISAs (UK). 16. Use of our report This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Michael Caullay (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor Glasgow, United Kingdom 5 October 2026 • the section of the annual report that describes the review of e ectiveness of risk management and internal control systems set out on page 32-33; and • the section describing the work of the Audit and Risk Committee set out on page 41-42. 14. Matters on which we are required to report by exception 14.1. Adequacy of explanations received and accounting records Under the Companies Act 2006 we are required to report to you if, in our opinion: • we have not received all the information and explanations we require for our audit; or • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or • the nancial statements are not in agreement with the accounting records and returns. We have nothing to report in respect of these matters. 14.2. Directors’ remuneration Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ remuneration have not been made or the part of the directors’ remuneration report to be audited is not in agreement with the accounting records and returns. We have nothing to report in respect of these matters. 15. Other matters which we are required to address 15.1. Auditor tenure Following the recommendation of the Audit and Risk Committee, we were appointed by the board of directors on 10 April 2019 to audit the nancial statements for the year ending 31 July 2019 and subsequent nancial periods. The period of total uninterrupted engagement including previous renewals and reappointments of the rm is eight years, covering the years ending 31 July 2019 to 31 July 2026. ![]() #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 59 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ## Statement of Changes in Equity for the year ended 31 July 2026 Called-up Capital Warrant Share share Share redemption exercise purchase Capital Revenue capital premium reserve reserve reserve reserves reserve Total Note £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 At 31 July 2024 11,845 7 656 3 80,718 249,597 8,062 350,888 Repurchase of the Company’s own shares into treasury – – – – (4,789) – – (4,789) Net return after taxation – – – – – 12,948 8,020 20,968 Dividend paid in the year 9 – – – – – (7,523) (14,967) (22,490) At 31 July 2025 11,845 7 656 3 75,929 255,022 1,115 344,577 Repurchase of the Company’s own shares into treasury – – – – (5,379) – – (5,379) Net return after taxation – – – – – 129,557 7,775 137,332 Dividend paid in the year 9 – – – – – (5,533) (8,330) (13,863) At 31 July 2026 11,845 7 656 3 70,550 379,046 560 462,667 The notes on pages 61 to 72 form an integral part of these accounts. ## Statement of Comprehensive Income for the year ended 31 July 2026 2026 2025 Revenue Capital Total Revenue Capital Total Note £’000 £’000 £’000 £’000 £’000 £’000 Gains on investments held at fair value through pro t or loss 2 – 112,746 112,746 – 12,834 12,834 Net gains on derivative contracts 10 – 20,576 20,576 – 2,080 2,080 Net foreign currency losses – (1,288) (1,288) – (89) (89) Income from investments 3 10,372 – 10,372 10,383 – 10,383 Other interest receivable and similar income 3 53 – 53 66 – 66 Gross return 10,425 132,034 142,459 10,449 14,825 25,274 Management fee 4 (876) (2,043) (2,919) (688) (1,605) (2,293) Administrative expenses 5 (705) – (705) (724) – (724) Net return before nance costs and taxation 8,844 129,991 138,835 9,037 13,220 22,257 Finance costs 6 (186) (434) (620) (116) (272) (388) Net return before taxation 8,658 129,557 138,215 8,921 12,948 21,869 Taxation 7 (883) – (883) (901) – (901) Net return after taxation 7,775 129,557 137,332 8,020 12,948 20,968 Return per share (pence) 8 6.79 113.22 120.01 6.91 11.16 18.07 The “Total” column of this statement is the pro t and loss account of the Company. The “Revenue” and “Capital” columns represent supplementary information prepared under guidance issued by the AIC. The Company has no other items of other comprehensive income, and therefore the net return after taxation is also the total comprehensive income/(loss) for the year. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year. The notes on pages 61 to 72 form an integral part of these accounts. ![]() 60 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) These accounts were approved and authorised for issue by the Board of Directors on 5 October 2026 and signed on its behalf by: Philip Kay Chair The notes on pages 61 to 72 form an integral part of these accounts. Registered in England and Wales as a public company limited by shares. Company registration number: 02930057. 2026 2025 Note £’000 £’000 Fixed assets Investments held at fair value through pro t or loss 10 438,694 327,209 Current assets Debtors 11 1,994 2,213 Cash at bank 11 26,288 17,028 Derivative nancial instruments held at fair value through pro t or loss 10 2,026 3,855 30,308 23,096 Current liabilities Creditors: amounts falling due within one year 12 (5,622) (5,605) Derivative nancial instruments held at fair value through pro t or loss 10 (713) (123) (6,335) (5,728) Net current assets 23,973 17,368 Net assets 462,667 344,577 Capital and reserves Called-up share capital 13 11,845 11,845 Share premium 14 7 7 Capital redemption reserve 14 656 656 Warrant exercise reserve 14 3 3 Share purchase reserve 14 70,550 75,929 Capital reserves 14 379,046 255,022 Revenue reserve 14 560 1,115 Total equity shareholders’ funds 462,667 344,577 Net asset value per share (pence) 15 406.76 298.35 ## Statement of Financial Position at 31 July 2026 ![]() #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 61 Schroder Japan Trust plc Annual Report and Financial Statements 2026 1. Accounting Policies (a) Basis of accounting Schroder Japan Trust plc (“the Company”) is registered in England and Wales as a public company limited by shares. The Company’s registered o ce is 1 London Wall Place, London EC2Y 5AU. The nancial statements are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice (“UK GAAP”), in particular in accordance with Financial Reporting Standard (FRS) 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and with the Statement of Recommended Practice “Financial Statements of Investment Trust Companies and Venture Capital Trusts” (the “SORP”) issued by the Association of Investment Companies in July 2022. All of the Company’s operations are of a continuing nature. The nancial statements have been prepared on a going concern basis under the historical cost convention, as modi ed by the revaluation of investments held at fair value through pro t or loss. The Directors believe that the Company has adequate resources to continue operating for at least 12 months from the date of approval of these accounts. In forming this opinion, the Directors have taken into consideration: the controls and monitoring processes in place; the Company’s level of debt and other payables; the level of operating expenses, comprising largely variable costs which would reduce pro rata in the event of a market downturn; and that the Company’s assets comprise cash and readily realisable securities quoted in active markets. In forming this opinion, the Directors have also considered any potential impact of climate change, and the risk/impact of elevated and sustained in ation and interest rates on the viability of the Company. The Company has additionally performed stress tests which con rm that a 50% fall in the market prices of the portfolio would not a ect the Board’s conclusions in respect of going concern. Further details of Directors’ considerations regarding this are given in the Chair’s Statement, Portfolio Managers’ Review, Going Concern Statement and the Viability Statement. The Company has not presented a statement of cash ows, as it is not required for an investment trust which meets certain conditions; in particular that substantially all of the Company’s investments are highly liquid and carried at market value. The nancial statements are presented in sterling and amounts have been rounded to the nearest thousand. The accounting policies applied to these accounts are consistent with those applied in the accounts for the year ended 31 July 2025. No signi cant judgements, estimates or assumptions have been required in the preparation of the accounts for the current or preceding nancial year. (b) Valuation of investments The Company’s business is investing in nancial assets with a view to pro ting from their total return in the form of income and capital growth. This portfolio of nancial assets and derivative instruments is managed and its performance evaluated on a fair value basis, in accordance with a documented investment strategy and information is provided internally on that basis to the Company’s Board of Directors. Accordingly, upon initial recognition, the investments are classi ed by the Company as “held at fair value through pro t or loss”. Investments are included initially at transaction price, excluding expenses incidental to purchase which are written o to capital at the time of acquisition. Subsequently, investments are valued at fair value, which are last traded prices as quoted on the Tokyo Stock Exchange. The Contracts for Di erence (CFD) held in the portfolio are valued based on the price of the underlying security or index which they are purchased to re ect. The fair value of the CFDs is the di erence between the strike price and the underlying shares in the contract. Investments that are unlisted or not actively traded are valued using a variety of techniques to determine their fair value; all such valuations are reviewed by both the AIFM’s Fair Value Pricing Committee and by the directors. No investments held at the current or comparative year end have been valued using other techniques. All purchases and sales are accounted for on a trade date basis. (c) Accounting for reserves Gains and losses on sales of investments and increases and decreases in the valuation of investments are included in the statement of comprehensive income and in capital reserves within “gains on investments held at fair value through pro t or loss. Gains and losses on sales of CFDs and increases and decreases in the valuation of CFDs are included in the statement of comprehensive income and in capital reserves within “net gains on derivative contracts. Foreign exchange gains and losses on cash and deposit balances and unrealised exchange gains and losses on foreign currency loans are included in the statement of comprehensive income and in capital reserves. (d) Income Dividends receivable are recognised on the ex-dividend basis except where, in the opinion of the board, the dividend is capital in nature, in which case it is included in capital. Overseas dividends are included gross of any withholding tax. CFD dividends are included net of any withholding tax. Where the Company has elected to receive scrip dividends in the form of additional shares rather than in cash, the amount of the cash dividend foregone is recognised in revenue. Any excess in the value of the shares received over the amount of the cash dividend is recognised in capital. Deposit interest outstanding at the year end is calculated and accrued on a time apportionment basis using market rates of interest. ## Notes to the Financial Statements for the year ended 31 July 2026 ![]() 62 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) (e) Expenses All expenses are accounted for on an accruals basis. Expenses are allocated wholly to the revenue column of the income statement with the following exceptions: The investment management fee is allocated 30% to • revenue and 70% to capital in line with the board’s expected long-term split of revenue and capital return from the Company’s investment portfolio. Expenses incidental to the purchase or sale of an • investment are charged to capital. These expenses are commonly referred to as transaction costs and mainly comprise brokerage commission. Details of transaction costs are given in note 10 on page 65. (f) Finance costs Finance costs, including collateral and nance costs paid on CFDs, any premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis using the e ective interest method in accordance with FRS 102. Finance costs are allocated 30% to revenue and 70% to capital in line with the board’s expected long-term split of revenue and capital return from the Company’s investment portfolio. (g) Other nancial instruments Cash and cash equivalents may comprise cash at bank including bank overdrafts and demand deposits which are readily convertible to a known amount of cash and are subject to insigni cant risk of changes in value. Other debtors and creditors do not carry any interest, are short-term in nature and are accordingly stated at nominal value, with debtors reduced by appropriate allowances for estimated irrecoverable amounts. Bank loans are classi ed as loans and are initially measured at fair value and subsequently measured at amortised cost. They are recorded at the proceeds received net of direct issue costs. Finance costs, including any premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis using the e ective interest method. (h) Taxation The tax charge for the year is based on amounts expected to be received or paid. Deferred tax is accounted for in accordance with FRS 102. Deferred tax is provided on all timing di erences that have originated but not reversed by the balance sheet date. Deferred tax liabilities are recognised for all taxable timing di erences but deferred tax assets are only recognised to the extent that it is probable that taxable pro ts will be available against which those timing di erences can be utilised. Tax relief is allocated to expenses charged to the capital column of the statement of comprehensive income on the “marginal basis”. On this basis, if taxable income is capable of being entirely o set by revenue expenses, then no tax relief is transferred to capital. Deferred tax is measured at the tax rate which is expected to apply in the periods in which the timing di erences are expected to reverse, based on tax rates that have been enacted or substantively enacted at the accounting date and is measured on an undiscounted basis. (i) Foreign currency In accordance with FRS 102, the Company is required to determine a functional currency, being the currency in which the Company predominantly operates. The Board, having regard to the currency of the Company’s share capital and the predominant currency in which its shareholders operate, has determined that sterling is the functional currency and the currency in which the accounts are presented. Transactions denominated in foreign currencies are converted at actual exchange rates as at the date of the transaction. Monetary assets, liabilities and equity investments denominated in foreign currencies at the year end, are translated at the rates of exchange prevailing at the year end. (j) Dividend payable In accordance with FRS 102, the nal dividend is included in the accounts in the year in which it is paid. (k) Repurchase of Ordinary Shares The costs of repurchasing Ordinary shares into treasury, including related stamp duty and transaction costs are taken directly to equity and reported through the Statement of Changes in Equity as a charge on the share purchase reserve. Share repurchase transactions are accounted for on a trade date basis. The nominal value of Ordinary share capital repurchased and held in treasury remain in the called up share capital reserve. ![]() #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 63 Schroder Japan Trust plc Annual Report and Financial Statements 2026 5. Administrative expenses 2026 2025 £’000 £’000 Administration expenses 390 411 Directors’ fees 1 177 181 Secretarial fee 90 90 Auditor’s remuneration 48 42 705 724 1 Details of all amounts payable to Directors are given in the Remuneration Report on page 48. 6. Finance costs 2026 2025 Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000 Interest on bank loans 3 7 10 11 27 38 Interest paid on long CFDs 183 427 610 105 245 350 186 434 620 116 272 388 7. Taxation (a) Analysis of tax charge for the year 2026 2025 Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000 Irrecoverable overseas tax 883 – 883 901 – 901 Taxation for the year 883 – 883 901 – 901 2. Gains on investments held at fair value through profit or loss 2026 2025 £’000 £’000 Realised gains on sales of investments 38,670 19,386 Change in unrealised gains/(losses) on Investments at fair value through pro t or loss 74,076 (6,552) Gains on investments held at fair value through pro t or loss 112,746 12,834 3. Income 2026 2025 £’000 £’000 Income from investments: Overseas dividends 8,835 9,018 Derivative income Dividends received on long CFDs 1,537 1,365 10,372 10,383 Other interest receivable and similar income Deposit interest 53 66 10,425 10,449 4. Investment management fee 2026 2025 Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000 Management fee 876 2,043 2,919 688 1,605 2,293 The basis for calculating the investment management fee is set out in the Report of the Directors on page 39 and details of all amounts payable to the Manager are given in note 16 on page 67. ![]() 64 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 8. Return per share 2026 2025 Revenue return (£’000) 7,775 8,020 Capital return (£’000) 129,557 12,948 Total return (£’000) 137,332 20,968 Weighted average number of ordinary shares in issue during the year 114,425,545 116,025,982 Revenue return per share (pence) 6.79 6.91 Capital return per share (pence) 113.22 11.16 Total return per share (pence) 120.01 18.07 9. Dividends (a) Dividends paid and proposed 2026 2025 £’000 £’000 2025 nal dividend of 2.85p (2024: 10.81p) 3,275 12,561 First interim dividend of 2.93p (2025: 2.82p) 3,355 3,267 Second interim dividend of 3.05p (2025: 2.89p) 3,489 3,345 Third interim dividend of 3.29p (2025: 2.87p) 3,744 3,317 Total dividends paid in the year 13,863 22,490 2026 2025 £’000 £’000 2026 Fourth interim dividend proposed of 4.07p (2025: 2.85p) 4,627 3,292 Dividends are initially paid from the revenue reserve; any amounts exceeding this reserve are funded from the capital reserve. The nal dividend of £2,160,000, paid on 31 October 2025, the rst interim dividend of £38,000, paid on 30 January 2026, and the second interim dividend of £3,335,000, paid on 28 April 2026, were all paid from the capital reserve. (b) Factors affecting tax charge for the year The tax assessed for the year is lower (2025: lower) than the Company’s applicable rate of corporation tax for the year of 25% (2025: 25%). The factors a ecting the tax charge for the year are as follows: 2026 2025 Revenue Capital Total Revenue Capital Total £’000 £’000 £’000 £’000 £’000 £’000 Net return before taxation 8,658 129,557 138,215 8,921 12,948 21,869 Net return before taxation multiplied by the Company’s applicable rate of corporation tax for the year of 25% (2025: 25%) 2,165 32,389 34,554 2,230 3,237 5,467 E ects of: Capital gains on investments – (33,009) (33,009) – (3,706) (3,706) Income not chargeable to corporation tax (2,593) – (2,593) (2,596) – (2,596) Irrecoverable overseas tax 883 – 883 901 – 901 Unrelieved expenses 428 620 1,048 366 469 835 Taxation for the year 883 – 883 901 – 901 (c) Deferred taxation The Company has an unrecognised deferred tax asset of £13,388,000 (2025: £12,348,000) based on a prospective corporation tax rate of 25% (2025: 25%). This deferred tax asset has arisen due to the cumulative excess of deductible expenses over taxable income. Given the composition of the Company’s portfolio, it is not likely that this asset will be utilised in the foreseeable future and therefore no asset has been recognised in the accounts. Given the Company’s intention to meet the conditions required to retain its status as an investment trust company, no provision has been made for UK capital gains tax on any capital gains or losses arising on the revaluation or disposal of investments. ![]() #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 65 Schroder Japan Trust plc Annual Report and Financial Statements 2026 (b) Transaction costs The following transaction costs, mainly comprising brokerage commissions, were incurred during the year: 2026 2025 £’000 £’000 On acquisitions 21 19 On disposals 19 28 40 47 (c) Derivative nancial instruments 2026 2025 Contracts for Differences (CFDs) £’000 £’000 Movement in investment holding (losses)/gains on CFDs (2,419) 2,803 Realised gains/(losses) on CFDs 22,995 (723) 20,576 2,080 2026 2025 Asset Fair Asset Fair exposure value exposure value Derivative nancial instruments held at fair value through pro t or loss £’000 £’000 £’000 £’000 CFD assets 44,985 2,026 59,736 3,855 CFD liabilities 34,196 (713) 3,672 (123) 79,181 1,313 63,408 3,732 The CFDs are held in order to increase exposure to stock movements without the nancial commitment of purchasing the stock. The total market exposure on the CFDs held at the year end is £79,181,000 (2025: £63,408,000) and the liability attached to the contract for di erences is £77,868,000 (2025: £59,676,000). This resulted in an unrealised gain of £1,313,000 (2025: £3,732,000). (b) Dividends for the purposes of Section 1158 of the Corporation Tax Act 2010 (“Section 1158”) The requirements of Section 1158 are considered on the basis of dividends declared in respect of the nancial year as shown below. The revenue available for distribution by way of dividend for the year is £7,775,000 (2025: £8,020,000). 2026 £’000 First interim dividend of 2.93p 3,355 Second interim dividend of 3.05p 3,489 Third interim dividend of 3.29p 3,744 Fourth interim dividend of 4.07p 4,627 Total dividends of 13.34p (2025: 11.43p) 15,215 10. Investments held at fair value through profit or loss (a) Movement in investments 2026 2025 £’000 £’000 Opening book cost 267,142 287,279 Opening investment holding gains 60,067 66,619 Opening fair value 327,209 353,898 Analysis of transactions made during the year Purchases at cost 87,755 87,291 Sales proceeds (89,016) (126,814) Gains on investments held at fair value 112,746 12,834 Closing fair value 438,694 327,209 Closing book cost 304,551 267,142 Closing investment holding gains 134,143 60,067 Closing fair value 438,694 327,209 All investments are listed on a recognised stock exchange. The Company received £89,016,000 (2025: £126,814,000) from disposal of investments in the year. The book cost of these investments when they were purchased was £50,346,000 (2025: £107,428,000). These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of the investments. ![]() 66 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 13. Called-up share capital 2026 2025 £’000 £’000 Ordinary shares allotted, called up and fully paid: Opening balance of 115,495,504 (2025: 117,400,528) ordinary shares of 10p each 11,549 11,740 Repurchase of 1,750,001 (2025: 1,905,024) shares held in treasury (175) (191) Subtotal of 113,745,503 (2025: 115,495,504) shares 11,374 11,549 4,707,783 (2025: 2,957,782) shares held in treasury 471 296 Closing balance of 118,453,286 (2025: 118,453,286) shares 11,845 11,845 During the year, the Company purchased 1,750,001 of its own shares, nominal value £175,000 to hold in treasury, for a total consideration of £5,379,000 representing 1.52% of the shares outstanding at the beginning of the year. The reason for these share repurchases was to seek to manage the volatility of the share price discount to net asset value per share. 14. Reserves Capital reserves Capital Warrant Share Share redemption exercise purchase Capital Revenue premium 1 reserve 1 reserve 1 reserve 2 reserve 3 reserve 4 Year ended 31 July 2026 £’000 £’000 £’000 £’000 £’000 £’000 Opening balance 7 656 3 75,929 255,022 1,115 Gains on sales of investments – – – – 38,670 – Change in unrealised gains on Investments at fair value through pro t or loss – – – – 74,076 – Gains on contracts for di erence – – – – 20,576 – Exchange losses on cash and short-term deposits – – – – (1,288) – Repurchase of shares into treasury – – – (5,379) – – Management fee and nance costs allocated to capital – – – – (2,477) – Dividend paid – – – – (5,533) (8,330) Retained revenue for the year – – – – – 7,775 Closing balance 7 656 3 70,550 379,046 560 1 These reserves are not distributable. 2 These are realised (distributable) capital reserves which may be used to repurchase the Company’s own shares or distributed as dividends. 3 This reserve may include some holding gains/(losses) on liquid investments (which may be deemed to be realised) and other amounts which are unrealised. An analysis has not been made between those amounts that are realised (and may be distributed as dividends or used to repurchase the Company’s own shares) and those that are unrealised. 4 A credit balance on the revenue reserve may be distributed as dividends or used to repurchase the Company’s own shares. 11. Current assets 2026 2025 Debtors £’000 £’000 Securities sold awaiting settlement 1,479 1,851 Dividends and interest receivable 450 339 Other debtors 65 23 1,994 2,213 The Directors consider that the carrying amount of debtors approximates to their fair value. 2026 2025 Cash and cash equivalents £’000 £’000 Cash at bank 26,288 17,028 26,288 17,028 The carrying amount of cash represents its fair value. No cash equivalents were held at the year end (2025: same). 12. Current liabilities 2026 2025 Creditors: amounts falling due within one year £’000 £’000 Amounts held at derivative clearing houses and brokers 2,556 3,145 Securities purchased awaiting settlement 976 1,546 Repurchase of ordinary shares into treasury awaiting settlement 219 114 Other creditors and accruals 1,871 800 5,622 5,605 The Directors consider that the carrying amount of creditors approximates to their fair value. The Company had a 1 billion yen, 364 day credit facility arrangement with SMBC, to 10 November 2025. The credit facility was not renewed after the 10 November 2025, and there was no credit facility in place at the year-end date. ![]() #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 67 Schroder Japan Trust plc Annual Report and Financial Statements 2026 16. Transactions with the Manager Under the terms of the AlFM Agreement, the Manager is entitled to receive a management fee, a marketing support fee and a company secretarial fee. Details of the AIFM agreement are given in the Report of the Directors on page 39. Any investments in funds managed or advised by the Manager or any of its associated companies are excluded from the assets used for the purpose of the management fee calculation and therefore incur no fee. The management fee payable in respect of the year ended 31 July 2026 amounted to £2,919,000 (2025: £2,293,000), of which £1,474,000 (2025: £614,000) was outstanding at the year end. The marketing support fee payable to the Manager amounted to £91,000 (2025: £50,000) of which £51,000 (2025: £13,000) was outstanding at the year end. The company secretarial fee payable to the Manager amounted to £90,000 (2025: £90,000) of which £45,000 (2025: £23,000) was outstanding at the year end. 17. Related party transactions Details of the remuneration payable to Directors are given in the Remuneration Report on page 48 and details of Directors’ shareholdings are given in the Report of the Directors on page 50. Details of transactions with the Manager are given in note 16 above. There have been no other transactions with related parties during the year (2025: nil). 18. Disclosures regarding financial instruments measured at fair value The Company’s nancial instruments within the scope of FRS 102 that are held at fair value comprise its investment portfolio and any derivative nancial instruments. FRS 102 requires that nancial instruments held at fair value are categorised into a hierarchy consisting of the three levels below. A fair value measurement is categorised in its entirety on the basis of the lowest level input that is signi cant to the fair value measurement. Level 1 – valued using unadjusted quoted prices in active markets for identical assets. Level 2 – valued using observable inputs other than quoted prices included within Level 1. Level 3 – valued using inputs that are unobservable. Details of the valuation techniques used by the Company are given in note 1(b) on page 61. Capital reserves Capital Warrant Share Share redemption exercise purchase Capital Revenue premium 1 reserve 1 reserve 1 reserve 2 reserve 3 reserve 4 Year ended 31 July 2025 £’000 £’000 £’000 £’000 £’000 £’000 Opening balance 7 656 3 80,718 249,597 8,062 Gains on sales of investments – – – – 19,386 – Change in unrealised gains on Investments at fair value through pro t or loss – – – – (6,552) – Gains on contracts for di erence – – – – 2,080 – Exchange losses on cash and short-term deposits – – – – (304) – Exchange gains on foreign currency loans – – – – 215 – Repurchase of shares into treasury – – – (4,789) – – Management fee and nance costs allocated to capital – – – – (1,877) – Dividend paid – – – – (7,523) (14,967) Retained revenue for the year – – – – – 8,020 Closing balance 7 656 3 75,929 255,022 1,115 1 These reserves are not distributable. 2 These are realised (distributable) capital reserves which may be used to repurchase the Company’s own shares or distributed as dividends. 3 This reserve may include some holding gains/(losses) on liquid investments (which may be deemed to be realised) and other amounts which are unrealised. An analysis has not been made between those amounts that are realised (and may be distributed as dividends or used to repurchase the Company’s own shares) and those that are unrealised. 4 A credit balance on the revenue reserve may be distributed as dividends or used to repurchase the Company’s own shares. 15. Net asset value per share 2026 2025 Total equity shareholders’ funds (£’000) 462,667 344,577 Shares in issue at the year end 113,745,503 115,495,504 Net asset value per share (pence) 406.76 298.35 ![]() 68 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) The Company’s classes of nancial instruments are as follows: investments in shares of Japanese companies which are held in accordance with the Company’s investment objective; • a credit facility, the purpose of which are to manage working capital requirements and to gear the Company as • appropriate; short-term debtors, creditors and cash arising directly from its operations; and • Contract for di erences, which are used for the purpose to gain exposure to the Japanese market. • (a) Market risk The fair value or future cash ows of a nancial instrument held by the Company may uctuate because of changes in market prices. This market risk comprises three elements: currency risk, interest rate risk and market price risk. Information to enable an evaluation of the nature and extent of these three elements of market risk is given in parts (i) to (iii) of this note, together with sensitivity analysis where appropriate. The Board reviews and agrees policies for managing these risks and these policies have remained unchanged from those applying in the comparative year. The Manager assesses the exposure to market risk when making each investment decision and monitors the overall level of market risk on the whole of the investment portfolio on an ongoing basis. (i) Currency risk The Company’s functional currency and the currency in which it reports, is sterling. However the Company’s assets, liabilities and income are almost entirely denominated in yen. As a result movements in the exchange rate will a ect the sterling value of those items. Management of currency risk The Manager monitors the Company’s exposure to foreign currencies on a daily basis and reports to the Board, which meets on at least four occasions each year. The Manager measures the risk to the Company of the foreign currency exposure by considering the e ect on the Company’s net asset value and income of a movement in the yen/sterling exchange rate. It is currently not the Company’s policy to actively hedge against currency risk. However any yen denominated borrowing acts to reduce the exposure of the Company’s portfolio to the yen/sterling exchange rate. Income is converted to sterling on receipt. The Company may use short-term forward currency contracts to manage working capital requirements. The following table sets out the fair value measurements using the FRS 102 hierarchy at 31 July: 2026 Level 1 Level 2 Level 3 Total £’000 £’000 £’000 £’000 Financial instruments held at fair value through pro t or loss Equity investments 438,694 – – 438,694 Derivative nancial instruments – contracts for di erence – CFD assets – 2,026 – 2,026 Derivative nancial instruments – contracts for di erence – CFD liabilities – (713) – (713) Total 438,694 1,313 – 440,007 2025 Level 1 Level 2 Level 3 Total £’000 £’000 £’000 £’000 Financial instruments held at fair value through pro t or loss Equity investments 327,209 – – 327,209 Derivative nancial instruments – contracts for di erence – CFD assets – 3,855 – 3,855 Derivative nancial instruments – contracts for di erence – CFD liabilities – (123) – (123) Total 327,209 3,732 – 330,941 19. Financial instruments’ exposure to risk and risk management policies The investment objective is set out on the inside front cover of this report. In pursuing this objective, the Company is exposed to a variety of risks that could result in a reduction in the Company’s net assets or a reduction in pro ts available for dividends. These risks include market risk (comprising currency risk, interest rate risk and market price risk), liquidity risk and credit risk. The Directors’ policy for managing these risks is set out in the accompanying text. The Board coordinates the Company’s risk management policy. The objectives, policies and processes for managing the risks and the methods used to measure the risks that are set out below, have not changed from those applying in the comparative year. ![]() #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 69 Schroder Japan Trust plc Annual Report and Financial Statements 2026 Conversely if sterling had strengthened by 10% this would have had the following e ect: 2026 2025 Income Statement – return after taxation £’000 £’000 Statement of comprehensive income - return after taxation Revenue return (936) (943) Capital return (2,238) (1,087) Total return after taxation for the year (3,174) (2,030) Net assets (3,174) (2,030) In the opinion of the Directors, the above sensitivity analysis with respect to monetary nancial assets and liabilities is broadly representative of the whole of the current and comparative year. The sensitivity with regard to the Company’s investments, and any derivative instruments held, to changes in foreign currency exchange rates is subsumed into market price risk sensitivity below. (ii) Interest rate risk Interest rate movements may a ect the level of income receivable on cash deposits and the interest payable on variable rate borrowings when interest rates are re-set. Management of interest rate risk Liquidity and borrowings are managed with the aim of increasing returns to shareholders. The Company may use gearing to enhance performance (including the use of CFDs) but investment exposure will not exceed 125% of net asset value. The possible e ects on cash ows that could arise as a result of changes in interest rates are taken into account when the Company borrows on the credit facility. However, amounts drawn down on this facility are for short-term periods and therefore exposure to interest rate risk is not signi cant. Foreign currency exposure The fair value of the Company’s monetary items that have exposure to the yen at 31 July are shown below. The Company’s investments and derivative nancial instruments have been included separately in the analysis so as to show the overall level of exposure. 2026 2025 £’000 £’000 Debtors (securities sold awaiting settlement, dividends and interest receivable) 1,929 2,190 Cash at bank 24,442 13,650 Amounts owing to derivative clearing houses and brokers (2,556) (3,145) Creditors (securities purchased awaiting settlement) (976) (1,546) Interest payable on long CFDs (29) (11) Foreign currency exposure on net monetary items 22,810 11,138 Investments held at fair value through pro t or loss that are equities 438,694 327,209 Derivative nancial instruments held at fair value through pro t or loss 1,313 3,732 Total net foreign currency exposure 462,817 342,079 The above year end amounts are broadly representative of the exposure to foreign currency risk during the current and comparative year. Foreign currency sensitivity The following tables illustrate the sensitivity of return after taxation for the year and net assets with regard to the Company’s monetary nancial assets, nancial liabilities and exchange rates. The sensitivity analysis is based on the Company’s monetary currency nancial instruments held at each balance sheet date and assumes a 10% (2025: 10%) appreciation or depreciation in sterling against the yen, which is considered to be a reasonable illustration based on the volatility of exchange rates during the year. If sterling had weakened by 10% this would have had the following e ect: 2026 2025 Income Statement – return after taxation £’000 £’000 Statement of comprehensive income - return after taxation Revenue return 936 943 Capital return 2,238 1,087 Total return after taxation for the year 3,174 2,030 Net assets 3,174 2,030 ![]() 70 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) (iii) Market price risk Market price risk includes changes in market prices, other than those arising from interest rate risk, which may a ect the value of the Company’s investments. Management of market price risk The Board meets on at least four occasions each year to consider the asset allocation of the portfolio and the risk associated with particular industry sectors. The investment management team has responsibility for monitoring the portfolio, which is selected in accordance with the Company’s investment objective and seeks to ensure that individual stocks meet an acceptable risk/reward pro le. Market price risk exposure The Company’s total exposure to changes in market prices at 31 July comprised its portfolio of investments as follows: 2026 2025 £’000 £’000 Investments held at fair value through pro t or loss 438,694 327,209 Derivative nancial instruments – portfolio exposure 79,181 63,408 517,875 390,617 The above data is broadly representative of the exposure to market price risk during the year. Concentration of exposure to market price risk An analysis of the Company’s investments is given on pages 16 and 17. The portfolio comprises securities listed on Japanese stock markets and CFDs with exposure to the Japanese stock market. Accordingly there is a concentration of exposure to that country. However it should be noted that an investment may not be entirely exposed to the economic conditions in its country of listing. Interest rate exposure The exposure of nancial assets and nancial liabilities to oating interest rates, giving cash ow interest rate risk when rates are re-set, is shown below: 2026 2025 £’000 £’000 Exposure to oating interest rates: Cash at bank 26,288 17,028 Total exposure 26,288 17,028 The oating rate assets consist of cash deposits on call. Sterling cash deposits at call earn interest at oating rates based on Sterling Overnight Index Average (“SONIA”) rates, (2025: same). The Company had a yen 1 billion, 364 day credit facility arrangement with SMBC, to 10 November 2025. Under the terms of the agreement, interest was payable at the “Compounded Reference Rate”, being the aggregate of the Daily Non- Cumulative Compounded Risk Free Reference Rate plus the applicable Credit Adjustment Spread. At the year end there was no credit facility in place. The above year-end amounts are not representative of the exposure to interest rates during the year as the level of cash balances has uctuated. The maximum and minimum exposure during the year was as follows: 2026 2025 £’000 £’000 Maximum debit interest rate exposure during the year – net cash/(debt) 14,370 (939) Maximum credit interest rate exposure during the year – net cash 26,888 20,596 Interest rate sensitivity The following table illustrates the sensitivity of the return after taxation for the year and net assets to a 1.0% (2025: 1.0%) increase or decrease in interest rates. This level of change is considered to be a reasonable illustration based on observation of current market conditions. The sensitivity analysis is based on the Company’s monetary nancial instruments held at the accounting date and which are exposed to interest rate movements, with all other variables held constant. 2026 2025 1.0% 1.0% 1.0% 1.0% increase decrease increase decrease in rate in rate in rate in rate Income Statement – return after taxation £’000 £’000 £’000 £’000 Revenue return 263 (263) 170 (170) Total return after taxation 263 (263) 170 (170) Net assets 263 (263) 170 (170) In the opinion of the Directors, this sensitivity analysis may not be representative of the Company’s future exposure to interest rate changes due to uctuations in the level of cash balances and drawings on the credit facility. ![]() #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 71 Schroder Japan Trust plc Annual Report and Financial Statements 2026 Liquidity risk exposure Contractual maturities of nancial liabilities, based on the earliest date on which payment can be required are as follows: 2026 2025 Within Within one year Total one year Total £’000 £’000 £’000 £’000 Creditors: amounts falling due within one year Securities purchased awaiting settlement 976 976 1,546 1,546 Repurchase of ordinary shares into treasury awaiting settlement 219 219 114 114 Interest payable on long CFDs 29 29 11 11 Other creditors and accruals 1,842 1,842 789 789 Amounts owing to derivative clearing houses and brokers 2,556 2,556 3,145 3,145 5,622 5,622 5,605 5,605 (c) Credit risk Credit risk is the risk that the failure of the counterparty to a transaction to discharge its obligations under that transaction could result in loss to the Company. Management of credit risk This risk is not signi cant and is managed as follows: Portfolio dealing The Company invests almost entirely in markets that operate a ‘Delivery versus Payment’ settlement process, ensuring the security of trades and reducing the risk of losing the principal amount. This approach extends to various investment instruments, while Contracts for Di erence (CFDs) are settled through cash payments based on the di erence between the opening and closing prices, rather than physical delivery of the underlying assets. The Manager continuously monitors dealing activity to ensure best execution, which involves measuring various indicators including the quality of trade settlement and incidence of failed trades. Counterparties and brokers must be pre-approved by the Manager’s credit committee. In relation to CFDs, counterparty risk is limited to the pro t on a contract, not the notional value. The value in this regard is shown in the table below under credit risk exposure. Market price risk sensitivity The following table illustrates the sensitivity of the return after taxation for the year and net assets to an increase or decrease of 10% (2025: 10%) in the fair values of the Company’s investments. This level of change is considered to be a reasonable illustration based on observation of current market conditions. The sensitivity analysis is based on the Company’s exposure to market price risk through its portfolio of investments and includes the impact on the management fee but assumes all other variables are held constant. 2026 2025 10% 10% 10% 10% increase decrease increase decrease in fair in fair in fair in fair value value value value Income Statement – return after taxation £’000 £’000 £’000 £’000 Revenue return (101) 101 (76) 76 Capital return 51,552 (51,552) 38,884 (38,884) Total return after taxation and net assets 51,451 (51,451) 38,808 (38,808) Percentage change in net asset value 11.1% (11.1%) 11.3% (11.3%) (b) Liquidity risk This is the risk that the Company will encounter di culty in meeting its obligations associated with nancial liabilities that are settled by delivering cash or another nancial asset. Management of the risk Liquidity risk is not signi cant as the Company’s assets comprise mainly readily realisable securities and derivative instruments, which can be sold to meet funding requirements if necessary. Short-term exibility is achieved through the use of a credit facility. ![]() 72 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) 20. Capital management policies and procedures The Company’s objectives, policies and processes for managing capital are unchanged from the preceding year. The Company’s debt and capital structure comprises the following: 2026 2025 £’000 £’000 Equity Called-up share capital 11,845 11,845 Reserves 450,822 332,732 Total equity 462,667 344,577 The Company’s capital management objectives are to ensure that it will continue as a going concern and to maximise the capital return to shareholders through an appropriate level of gearing. The Board’s policy is that the Company may use gearing to enhance performance (including the use of CFDs) but investment exposure will not exceed 125% of net asset value. Following the change in investment policy gearing is calculated as the amounts by which portfolio exposure exceeds net assets expressed as a percentage of net assets. 2026 2025 Portfolio Portfolio Portfolio Portfolio exposure exposure 1 exposure exposure 1 £’000 £’000 £’000 £’000 Investments 438,694 94.8 327,209 95.0 Portfolio exposure on CFDs 79,181 17.1 63,408 18.4 Total portfolio exposure 517,875 111.9 390,617 113.4 Net assets 462,667 344,577 Total portfolio exposure 11.9 13.4 1 Portfolio exposure to the market expressed as a percentage of net assets. The Board, with the assistance of the Manager, monitors and reviews the broad structure of the Company’s capital on an ongoing basis. This review includes: the planned level of gearing, which takes into account the Manager’s views on the market; • the need to buy back shares to be held in treasury, which takes into account the share price discount; • the opportunities for issues of new shares; and • the level of dividend distribution in excess of that which is required to be distributed. • Exposure to the Custodian The Custodian of the Company’s assets is J.P. Morgan Europe Limited which has Long-Term Credit Ratings of AA– with Fitch and Aa3 with Moody’s. The Company’s investments are held in accounts which are segregated from the Custodian’s own trading assets. If the Custodian were to become insolvent, the Company’s right of ownership of its investments is clear and they are therefore protected. However the Company’s cash balances are all deposited with the Custodian as banker and held on the Custodian’s balance sheet. In accordance with usual banking practice, the Company will rank as a general creditor to the Custodian in respect of cash balances. Credit risk exposure The following amounts shown in the Statement of Financial Position, represent the maximum exposure to credit risk at the current and comparative year end. 2026 2025 £’000 £’000 Current assets Debtors – securities sold awaiting settlement, dividends and interest receivable and other debtors 1,994 2,213 Cash at bank 26,288 17,028 Derivative nancial instruments 2,026 3,855 30,308 23,096 No debtors are past their due date and no provision has been made for impairment. The Company had received an amount of cash denominated in Japanese Yen (JPY) from JPMorgan Chase Bank as collateral in relation to derivative nancial instruments. The total amount from JPMorgan Chase Bank as at 31 July 2026 was £2,556,000 (2025: £3,145,000). (d) Fair values of nancial assets and nancial liabilities All nancial assets and liabilities are either carried at fair value or the amount in the Statement of Financial Position is a reasonable approximation of fair value. ![]() Tokyo and the Sumida River ## Section 6: Other Information (Unaudited) #### Annual General Meeting – Recommendations 74 #### Notice of Annual General Meeting 75 #### Explanatory Notes to the Notice of Meeting 76 #### De nitions of Terms and Alternative Performance Measures 78 #### Information about the Company 80 #### Risk Disclosures 82 73 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 6: Other Information (Unaudited) Schroder Japan Trust plc Annual Report and Financial Statements 2026 73 Schroder Japan Trust plc Annual Report and Financial Statements 2026 ![]() 74 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) Resolution 12: Authority to make market purchases of the Company’s own shares (special resolution) At the AGM held on 1 December 2025, the Company was granted authority to make market purchases of up to 17,227,511 ordinary shares of 10p each for cancellation or to be held in treasury. As at 5 October 2026 1,315,244 shares have been bought back under this authority granted on 1 December 2025 and the Company therefore has remaining authority to purchase up to 15,912,267 ordinary shares. This authority will expire at the forthcoming AGM. The Directors believe it is in the best interests of the Company and its shareholders to have a general authority for the Company to buy-back its ordinary shares in the market as they keep under review the share price discount to NAV and the purchase of ordinary shares. A special resolution will be proposed at the forthcoming AGM to give the Company authority to make market purchases of up to 14.99% of the ordinary shares in issue as at the date of the Notice of the AGM. The Directors will exercise this authority only if the Directors consider that any purchase would be for the bene t of the Company and its shareholders, taking into account relevant factors and circumstances at the time. Any shares so purchased would be cancelled or held in treasury for potential reissue. If renewed, the authority to be given at the 2026 AGM will lapse at the conclusion of the AGM in 2027 unless renewed, varied or revoked earlier. Resolution 13: Notice period for general meetings (special resolution) Resolution 13 set out in the Notice of AGM is a special resolution and will, if passed, allow the Company to hold general meetings (other than AGMs) on a minimum notice period of 14 clear days, rather than 21 clear days as required by the Companies Act 2006. The approval will be e ective until the Company’s next AGM to be held in 2027. The Directors will only call general meetings on 14 clear days’ notice when they consider it to be in the best interests of the Company’s shareholders and will only do so if the Company o ers facilities for all shareholders to vote by electronic means and when the matter needs to be dealt with expediently. Recommendations The Board considers that the resolutions relating to the aforementioned items of special business are in the best interests of shareholders as a whole. Accordingly, the Board unanimously recommends to shareholders that they vote in favour of the aforementioned resolutions and the other resolutions to be proposed at the forthcoming AGM, as they intend to do in respect of their own bene cial holdings. The Annual General Meeting (“AGM”) of the Company will be held on Friday, 6 November 2026 at 1.00pm. The formal Notice of Meeting is set out on page 75. The following information is important and requires your immediate attention. If you are in any doubt about the action you should take, you should consult an independent nancial adviser, authorised under the Financial Services and Markets Act 2000. If you have sold or transferred all of your ordinary shares in the Company, please forward this document with its accompanying form of proxy at once to the purchaser or transferee, or to the stockbroker, bank or other agent through whom the sale or transfer was e ected, for onward transmission to the purchaser or transferee. Ordinary business Resolutions 1 to 9 constitute ordinary business. Resolution 10, although proposed as an ordinary resolution, constitutes special business. Resolution 2 invites shareholders to approve the Directors Remuneration Policy. Resolution 3 concerns the Remuneration Report set out on pages 48 to 50 Resolutions 4 to 7 invite shareholders to re-elect each of the Directors for another year, following the recommendations of the Nomination Committee, set out on page 47 (their biographies are set out on pages 36 and 37). Resolutions 8 and 9 concern the re-appointment and remuneration of the Company’s auditors, discussed in the Audit and Risk Committee Report on pages 41 to 43. Special business Resolution 10: Directors’ authority to allot shares (ordinary resolution) and Resolution 11: power to disapply pre-emption rights (special resolution) The Directors are seeking authority to allot a limited number of unissued ordinary shares for cash without rst o ering them to existing shareholders in accordance with statutory pre-emption procedures. Appropriate resolutions will be proposed at the forthcoming AGM and are set out in full in the Notice of AGM. An ordinary resolution will be proposed to authorise the Directors to allot shares up to a maximum aggregate nominal amount of £566,258 (being 5% of the issued share capital as at 5 October 2026, excluding any shares held in treasury). A special resolution will also be proposed to give the Directors authority to allot securities for cash on a non pre-emptive basis up to a maximum aggregate nominal amount of £566,258 (being 5% of the Company’s issued share capital as at 5 October 2026). The Directors do not intend to allot shares pursuant to these authorities other than to take advantage of opportunities in the market as they arise and only if they believe it to be advantageous to the Company’s existing shareholders to do so and when it would not result in any dilution of NAV per share. If approved, both of these authorities will expire at the conclusion of the AGM in 2027 unless renewed, varied or revoked earlier. ## Annual General Meeting – Recommendations ![]() 75 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) Company to make o ers or agreements before such expiry which would or might require equity securities to be allotted after such expiry.” 12. To consider and, if thought t, to pass the following resolution as a special resolution: “THAT the Company be and is hereby generally and unconditionally authorised in accordance with Section 701 of the Companies Act 2006 (the “Act”) to make market purchases (within the meaning of Section 693 of the Act) of ordinary shares of 10p each in the capital of the Company (“Share”) at whatever discount the prevailing market price represents to the prevailing net asset value per Share provided that: (a) the maximum number of Shares which may be purchased is 16,976,416, representing 14.99% of the Company’s issued ordinary share capital as at 5 October 2026 (excluding treasury shares); (b) the maximum price (exclusive of expenses) which may be paid for a Share shall not exceed the higher of; i) 105% of the average of the middle market quotations for the Shares as taken from the London Stock Exchange Daily O cial List for the ve business days preceding the date of purchase; and ii) the higher of the last independent bid and the highest current independent bid on the London Stock Exchange; (c) the minimum price (exclusive of expenses) which may be paid for a Share shall be 10p, being the nominal value per Share; (d) this authority hereby conferred shall expire at the conclusion of the next Annual General Meeting of the Company in 2027 (unless previously renewed, varied or revoked by the Company prior to such date); (e) the Company may make a contract to purchase Shares under the authority hereby conferred which will or may be executed wholly or partly after the expiration of such authority and may make a purchase of Shares pursuant to any such contract; and (f) any Shares so purchased will be cancelled or held in treasury.” 13. To consider and, if thought t, to pass the following resolution as a special resolution: “THAT a general meeting, other than an Annual General Meeting, may be called on no less than 14 clear days’ notice.” By order of the Board For and on behalf of Schroder Investment Management Limited Company Secretary 5 October 2026 Registered O ce: 1 London Wall Place, London EC2Y 5AU Registered Number: 02930057 Notice is hereby given that the Annual General Meeting of Schroder Japan Trust plc will be held on Friday, 6 November 2026 at 1.00pm at 1 London Wall Place, London EC2Y 5AU to consider the following resolutions of which resolutions 1 to 10 will be proposed as ordinary resolutions and resolutions 11 to 13 will be proposed as special resolutions: Ordinary business 1. To receive the Report of the Directors and the audited Accounts for the year ended 31 July 2026. 2. To approve the Directors’ Remuneration Policy. 3. To approve the Directors’ Remuneration Report for the year ended 31 July 2026. 4. To approve the re-election of Philip Kay as a Director of the Company. 5. To approve the re-election of Helena Coles as a Director of the Company. 6. To approve the re-election of Merryn Somerset Webb as a Director of the Company. 7. To approve the re-election of Samantha Wren as a Director of the Company. 8. To re-appoint Deloitte LLP as auditors to the Company. 9. To authorise the Directors to determine the remuneration of Deloitte LLP as auditors to the Company. Special Business 10. To consider, and if thought t, pass the following resolution as an ordinary resolution: “THAT in substitution for all existing authorities the Directors be generally and unconditionally authorised pursuant to section 551 of the Companies Act 2006 (the “Act”) to exercise all the powers of the Company to allot relevant securities (within the meaning of section 551 of the Act) up to an aggregate nominal amount of £566,258 (being 5% of the issued ordinary share capital, excluding shares held in treasury, as at 5 October 2026) for a period expiring (unless previously renewed, varied or revoked by the Company in a general meeting) at the conclusion of the next Annual General Meeting of the Company, but that the Company may make an o er or agreement which would or might require relevant securities to be allotted after expiry of this authority and the Board may allot relevant securities in pursuance of that o er or agreement.” 11. To consider and, if thought t, to pass the following resolution as a special resolution: “THAT, subject to the passing of Resolution 10 set out above, the Directors be and are hereby empowered, pursuant to Section 571 of the Act, to allot equity securities (including any shares held in treasury) (as de ned in section 560(1) of the Act) pursuant to the authority given in accordance with section 551 of the Act by the said Resolution 10 and/or where such allotment constitutes an allotment of equity securities by virtue of section 560(2) of the Act as if Section 561(1) of the Act did not apply to any such allotment, provided that this power shall be limited to the allotment of equity securities up to an aggregate nominal amount of £566,258 (representing 5% of the aggregate nominal amount of the share capital in issue as at 5 October 2026); and provided that this power shall expire at the conclusion of the next Annual General Meeting of the Company but so that this power shall enable the ## Notice of Annual General Meeting ![]() 76 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) instructions must be received by Equiniti no later than 1.00pm on Wednesday 4 November 2026. If you have any di culties with online voting, you should contact the shareholder helpline on +44(0) 121 415 0207. If an ordinary shareholder submits more than one valid proxy appointment, the appointment received last before the latest time for receipt of proxies will take precedence. Shareholders may not use any electronic address provided either in this Notice of Annual General Meeting or any related documents to communicate with the Company for any purposes other than expressly stated. Representatives of shareholders that are corporations will have to produce evidence of their proper appointment when attending the Annual General Meeting. 2. Any person to whom this notice is sent who is a person nominated under section 146 of the Companies Act 2006 to enjoy information rights (a “Nominated Person”) may, under an agreement between him or her and the shareholder by whom he or she was nominated, have a right to be appointed (or to have someone else appointed) as a proxy for the Annual General Meeting. If a Nominated Person has no such proxy appointment right or does not wish to exercise it, he or she may, under any such agreement, have a right to give instructions to the shareholder as to the exercise of voting rights. The statement of the rights of ordinary shareholders in relation to the appointment of proxies in note 1 does not apply to Nominated Persons. The rights described in that note can only be exercised by ordinary shareholders of the Company. 3. Pursuant to Regulation 41 of the Uncerti cated Securities Regulations 2001, the Company has speci ed that only those shareholders registered in the Register of Members of the Company business at 6.30pm two days prior to the date of an adjourned meeting, shall be entitled to attend and vote at the meeting in respect of the number of shares registered in their name at that time. Changes to the Register of Members after 6.30pm on Wednesday 4 November 2026 shall be disregarded in determining the right of any person to attend and vote at the meeting. 4. CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so by using the procedures described in the CREST manual. The CREST manual can be viewed at www.euroclear.com. A CREST message appointing a proxy (a “CREST proxy instruction”) regardless of whether it constitutes the appointment of a proxy or an amendment to the instruction previously given to a previously appointed proxy must, in order to be valid, be transmitted so as to be received by the issuer’s agent (ID RA19) by the latest time for receipt of proxy appointments. 5. If you are an institutional investor, you may be able to appoint a proxy electronically via the Proxymity platform, a process which has been agreed by the Company and approved by the Registrar. For further information regarding Proxymity, please go to www.proxymity.io. Your proxy must be lodged by 1.00pm on Wednesday 4 November 2026 in order to be considered valid. Before you can appoint a proxy via this process you will need to have agreed to Proxymity’s associated terms and conditions. It is important that you read these 1. Ordinary shareholders are entitled to attend and vote at the meeting and to appoint one or more proxies, who need not be a shareholder, as their proxy to exercise all or any of their rights to attend, speak and vote on their behalf at the meeting. A proxy form is attached. If you wish to appoint a person other than the Chair as your proxy, please insert the name of your chosen proxy holder in the space provided at the top of the form. If the proxy is being appointed in relation to less than your full voting entitlement, please enter in the box next to the proxy holder’s name the number of shares in relation to which they are authorised to act as your proxy. If left blank your proxy will be deemed to be authorised in respect of your full voting entitlement (or if this proxy form has been issued in respect of a designated account for a shareholder, the full voting entitlement for that designated account). Additional proxy forms can be obtained by contacting the Company’s Registrars, Equiniti Limited, on +44(0) 121 415 0207, or you may photocopy the attached proxy form. Please indicate in the box next to the proxy holder’s name the number of shares in relation to which they are authorised to act as your proxy. Please also indicate by ticking the box provided if the proxy instruction is one of multiple instructions being given. Completion and return of a form of proxy will not preclude a member from attending the Annual General Meeting and voting in person. On a vote by show of hands, every ordinary shareholder who is present in person has one vote and every duly appointed proxy who is present has one vote. On a poll vote, every ordinary shareholder who is present in person or by way of a proxy has one vote for every share of which he/she is a holder. However it should be noted that a “Vote Withheld” is not a vote in law and will not be counted in the calculation of the proportion of the votes ‘For’ and ‘Against’ a resolution. A proxy form must be signed and dated by the shareholder or his or her attorney duly authorised in writing. In the case of joint holdings, any one holder may sign this form. The vote of the senior joint holder who tenders a vote, whether in person or by proxy, will be accepted to the exclusion of the votes of the other joint holder and for this purpose seniority will be determined by the order in which the names appear on the Register of Members in respect of the joint holding. To be valid, proxy form(s) must be completed and returned to the Company’s Registrars, Equiniti Limited, Highdown House, Yeoman Way, Worthing, West Sussex BN99 6DA, in the enclosed envelope together with any power of attorney or other authority under which it is signed or a copy of such authority certi ed notarially, to arrive no later than 48 hours before the time xed for the meeting, or an adjourned meeting. Shareholders may also appoint a proxy to vote on the resolutions being put to the meeting online by going to Equiniti’s Shareview website, http://www.shareview.co.uk, and logging in to your Shareview Portfolio. Once you have logged in, simply click ‘View’ on the ‘My Investments’ page and then click on the link to vote and follow the on-screen instructions. If you have not yet registered for a Shareview Portfolio, go to http://www.shareview.co.uk and enter the requested information. It is important that you register for a Shareview Portfolio with enough time to complete the registration and authentication processes. Please note that to be valid, your proxy ## Explanatory Notes to the Notice of Meeting ![]() 77 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) carefully as you will be bound by them, and they will govern the electronic appointment of your proxy. 6. Copies of the terms of appointment of the non-executive Directors and a statement of all transactions of each Director and of his family interests in the shares of the Company, will be available for inspection by any member of the Company at the registered o ce of the Company during normal business hours on any weekday (English public holidays excepted) and at the Annual General Meeting by any attendee, for at least 15 minutes prior to, and during, the Annual General Meeting. None of the Directors has a contract of service with the Company. 7. The biographies of the Directors o ering themselves for re-election are set out on pages 36 and 37 of the Company’s annual report and nancial statements for the year ended 31 July 2026. 8. As at 5 October 2026, 118,453,286 ordinary shares of 10 pence each were in issue (5,201,674 shares were held in treasury). Therefore the total number of voting rights of the Company as at 5 October 2026 was 113,251,612. 9. A copy of this notice of meeting, which includes details of shareholder voting rights, together with any other information as required under Section 311A of the Companies Act 2006, is available from the Company’s webpages, https://www.schroders.com/japantrust. 10. Pursuant to Section 319A of the Companies Act 2006, the Company must cause to be answered at the Annual General Meeting any question relating to the business being dealt with at the Annual General Meeting which is put by a member attending the meeting, except in certain circumstances, including if it is undesirable in the interests of the Company or the good order of the meeting that the question be answered or if to do so would involve the disclosure of con dential information. 11. The Company’s privacy policy is available on its webpages. https://www.schroders.com/japantrust. Shareholders can contact Equiniti for details of how Equiniti processes their personal information as part of the AGM. ![]() 78 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) The NAV total return for the period ended 31 July 2026 is calculated as follows: Opening NAV at 31/07/25 298.35p Closing NAV at 31/07/26 406.76p NAV on Cumulative Dividend received XD date XD date Factor Factor 2.85p 02/10/2025 315.56p 1.009 1.009 2.93p 02/01/2026 335.34p 1.009 1.018 3.05p 26/03/2026 358.56p 1.009 1.027 3.29p 02/07/2026 406.46p 1.008 1.035 NAV total return, being the closing NAV, multiplied by the cumulative factor, expressed as a percentage change in the opening NAV: 41.2% The NAV total return for the year ended 31 July 2025 is calculated as follows: Opening NAV at 31/07/24 298.88p Closing NAV at 31/07/25 298.35p NAV on Cumulative Dividend received XD date XD date Factor Factor 10.81p 07/11/2024 282.32p 1.038 1.038 2.82p 02/01/2025 296.50p 1.010 1.048 2.89p 27/03/2025 284.40p 1.010 1.059 2.87p 03/07/2025 280.70p 1.010 1.070 NAV total return, being the closing NAV, multiplied by the cumulative factor, expressed as a percentage change in the opening NAV: 6.8% The share price total return for the period ended 31 July 2026 is calculated as follows: Opening Share price at 31/07/25 260.00p Closing Share price at 31/07/26 373.00p NAV on Cumulative Dividend received XD date XD date Factor Factor 2.85p 02/10/2025 284.00p 1.010 1.010 2.93p 02/01/2026 313.00p 1.009 1.019 3.05p 26/03/2026 319.00p 1.010 1.029 3.29p 02/07/2026 379.00p 1.009 1.039 Share price total return, being the closing share price, multiplied by the cumulative factor, expressed as a percentage change in the opening share price: 49.0% The share price total return for the year ended 31 July 2025 is calculated as follows: Opening Share price at 31/07/24 266.00p Closing Share price at 31/07/25 260.00p NAV on Cumulative Dividend received XD date XD date Factor Factor 10.81p 07/11/2024 244.00p 1.044 1.044 2.82p 02/01/2025 261.00p 1.011 1.056 2.89p 27/03/2025 246.00p 1.012 1.068 2.87p 03/07/2025 258.00p 1.011 1.080 Share price total return, being the closing share price, multiplied by the cumulative factor, expressed as a percentage change in the opening share price: 5.6% The terms and performance measures below are those commonly used by investment companies to assess values, investment performance and operating costs. Numerical calculations are given where relevant. Some of the nancial measures below are classi ed as APMs as de ned by the European Securities and Markets Authority. Under this de nition, #### APMs include a nancial measure of historical nancial performance or nancial position, other than a nancial measure de ned or speci ed in the applicable nancial reporting framework. APMs have been marked with an asterisk (\*). #### Net asset value (“NAV”) per share The NAV per share of 406.76p (31 July 2025: 298.35p) represents the net assets attributable to equity shareholders of £462,667,000 (31 July 2025: £344,577,000) divided by the number of shares in issue of 113,745,503 (31 July 2025: 115,495,504). The change in the NAV amounted to +36.3% (year ended 31 July 2025: -0.2%) over the year. However, this performance measure excludes the positive impact of dividends paid out by the Company during the period. When these dividends are factored into the calculation, the resulting performance measure is termed the “total return”. Total return calculations and de nitions are given below. #### Total return\* The combined e ect of any dividends paid, together with the rise or fall in the share price or NAV per share. Total return statistics enable the investor to make performance comparisons between investment companies with di erent dividend policies. Any dividends received by a shareholder are assumed to have been reinvested in either the assets of the Company at its NAV per share at the time the shares were quoted ex-dividend (to calculate the NAV per share total return) or in additional shares of the Company (to calculate the share price total return). ## Definitions of Terms and Alternative Performance Measures ![]() 79 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) #### Benchmark The measure against which the Company compares its performance. The Benchmark is now named Tokyo Stock Price Index Total Return since April 4, 2022, previously known as TSE First Section Total Return Index. #### Discount/premium\* The amount by which the share price of an investment trust is lower (discount) or higher (premium) than the NAV per share. If shares are trading at a discount, investors would be paying less than the value attributable to the shares by reference to the underlying assets. A premium or discount is generally the consequence of supply and demand for the shares on the stock market. The discount or premium is expressed as a percentage of the NAV per share. The discount at the year end amounted to 8.3% (31 July 2025: 12.9%), as the closing share price of 373.00p (31 July 2025: 260.00p) was 8.3% (31 July 2025: 12.9%) lower than the closing NAV per share of 406.76p (31 July 2025: 298.35p). The average daily discount during the year was 8.3% (2025: 11.7%), re ecting the average level at which the Company's shares traded relative to their NAV per share throughout the year. #### Gearing\* Gearing is the total portfolio exposure which is de ned as the amount by which portfolio exposure exceeds the net asset values expressed as percentages of net asset value. The total portfolio exposure will not exceed 125% of the net asset value. If assets rise in value, gearing magni es the return to ordinary shareholders. Correspondingly, if assets fall in value, gearing magni es that fall. Contracts for Di erence are used as a way of gaining exposure to the price movements of shares without buying the underlying shares directly. 2026 2025 Portfolio Portfolio Portfolio Portfolio exposure exposure exposure exposure £’000 % £’000 % Investments at fair value 438,694 94.8 327,209 95.0 CFD notional market value 1 79,181 17.1 63,408 18.4 Total portfolio exposure 517,875 111.9 390,617 113.4 Net assets 462,667 344,577 Total portfolio exposure 11.9 13.4 1 The notional market value of a CFD represents the total value of the underlying asset of the CFD contract. #### Leverage\* For the purpose of the Alternative Investment Fund Managers (AIFM) Directive, leverage is any method which increases the Company’s exposure, including the borrowing of cash and the use of derivatives. It is expressed as the ratio of the Company’s exposure to its net asset value and is required to be calculated both on a “Gross” and a “Commitment” method. Under the Gross method, exposure represents the sum of the absolute values of all positions, so as to give an indication of overall exposure. Under the Commitment method, exposure is calculated in a similar way, but after netting o hedges which satisfy certain strict criteria. The Company’s leverage policy and details of its leverage ratio calculation and exposure limits as required by the AIFM Directive are published on the Company’s webpages and within this report. The Company is also required to publish periodically its actual leverage exposures. As at 31 July 2026 these were: Maximum Actual Leverage exposure ratio ratio Gross method 200.0% 111.9 Commitment method 200.0% 111.9 #### Ongoing Charges\* Ongoing Charges is calculated in accordance with the AIC’s recommended methodology and represents the management fee and all other operating expenses excluding nance costs and transaction costs, amounting to £3,624,000 (31 July 2025: £3,017,000), expressed as a percentage of the average daily net asset values during the year of £407.1 million (31 July 2025: £329.1 million). 2026 2025 £’000 £’000 Management fee and all other operating expenses excluding nance costs, transaction costs and any performance fee payable (3,624) (3,017) Average daily net asset values during the year 407,137 329,115 Ongoing charges ratio (%) 0.89 0.92 ![]() 80 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) ## Information about the Company #### Web pages and share price information The Company has dedicated webpages, which may be found at https://www.schroders.com/japantrust. The webpages have been designed to be utilised as the Company’s primary method of electronic communication with shareholders. It contains details of the Company’s ordinary share price and copies of annual reports and other documents published by the Company as well as information on the Directors, terms of reference of Committees and other governance arrangements. In addition, the webpages contain links to announcements made by the Company to the market, Equiniti’s shareview service and Schroders’ website. There is also a section entitled “How to Invest”. The Company releases its NAV on both a cum and exincome basis to the market on a daily basis. Share price information may also be found in the Financial Times and on the Company’s webpages. #### The Association of Investment Companies The Company is a member of the Association of Investment Companies. Further information on the Association can be found on its website, www.theaic.co.uk. #### Individual Savings Account (ISA) status The Company’s shares are eligible for stocks and shares ISAs. #### Non-Mainstream Pooled Investments status The Company currently conducts its a airs so that its shares can be recommended by IFAs to ordinary retail investors in accordance with the FCA’s rules in relation to non–mainstream investment products and intends to continue to do so for the foreseeable future. The Company’s shares are excluded from the FCA’s restrictions which apply to non–mainstream investment products because they are shares in an investment trust. #### Financial calendar Half year results announced March Financial year end 31 July Annual results announced September/October Annual General Meeting November/December #### Alternative Investment Fund Managers #### Directive (AIFMD) disclosures Certain pre-sale, regular and periodic disclosures required by the AIFM Directive may be found either in this annual report or on the Company’s webpages. The Company’s leverage policy and details of limits on leverage required under the AIFM Directive are published on the Company’s webpages. #### Illiquid assets As at the date of this report, none of the Company’s assets are subject to special arrangements arising from their illiquid nature. #### Remuneration disclosures Quantitative remuneration disclosures to be made in this annual report in accordance with FCA Handbook rule FUND3.3.5 may also be found in the AIFM’s website www.schroders.com/rem-disclosures, which will have the information for the reporting period 31 July 2026. #### Publication of Key Information Document #### (KID) by the AIFM Pursuant to the Packaged Retail and Insurance Based Products (“PRIIPs”) Regulation, the Manager, as the Company’s AIFM, is required to publish a short KID on the Company. KIDs are designed to provide certain prescribed information to retail investors, including details of potential returns under di erent performance scenarios and a risk/reward indicator. The Company’s KID is available on its webpages. #### Dividends Paying dividends into a bank or building society account helps reduce the risk of fraud and will provide you with quicker access to your funds than payment by cheque. Applications for an electronic mandate can be made by contacting the registrar, Equiniti. This is the most secure and e cient method of payment and ensures that you receive any dividends promptly. If you do not have a UK bank or building society account, please contact Equiniti for details of their overseas payment service. Further information can be found at www.shareview.co.uk, including how to register with shareview Portfolio and manage your shareholding online. ![]() #### Warning to shareholders Companies are aware that their shareholders have received unsolicited telephone calls or correspondence concerning investment matters. These are typically from overseas-based ‘brokers’ who target UK shareholders, o ering to sell them what often turn out to be worthless or high risk shares or investments. These operations are commonly known as ‘boiler rooms’. These ‘brokers’ can be very persistent and extremely persuasive. Shareholders are advised to be wary of any unsolicited advice, o ers to buy shares at a discount or o ers of free company reports. If you receive any unsolicited investment advice: • Make sure you get the correct name of the person and organisation • Check that they are properly authorised by the FCA before getting involved by visiting register.fca.org.uk • Report the matter to the FCA by calling 0800 111 6768 or visiting fca.org.uk/consumers/report-scam- unauthorised- rm • Do not deal with any rm that you are unsure about If you deal with an unauthorised rm, you will not be eligible to receive payment under the Financial Services Compensation Scheme. The FCA provides a list of unauthorised rms of which it is aware, which can be accessed at https://www.fca.org.uk/consumers/warning-list- unauthorised- rms. More detailed information on this or similar activity can be found on the FCA website at fca.org.uk/consumers/protect-yourself-scams. 81 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) #### Directors Philip Kay (Chair) Helena Coles Merryn Somerset Webb Samantha Wren #### Registered Office 1 London Wall Place London EC2Y 5AU Tel: 020 7658 6000 #### Advisers and service providers Alternative Investment Fund Manager (the “Manager” or “AIFM”) Schroder Unit Trusts Limited 1 London Wall Place London EC2Y 5AU Investment Manager and Company Secretary Schroder Investment Management Limited 1 London Wall Place London EC2Y 5AU Telephone: 020 7658 6189 AMCompanySecretary@Schroders.com Depositary and Custodian J.P. Morgan Europe Limited 25 Bank Street London E14 5JP Corporate Broker J.P. Morgan Cazenove 25 Bank Street Canary Wharf London E14 5JP Independent auditor Deloitte LLP 2 New Street Square London EC4A 3BZ Registrar Equiniti Limited Highdown House Yeoman Way Worthing West Sussex BN99 3HH Shareholder Helpline: 0121-415-0207\* Website: www.shareview.co.uk \*Calls to this number are free of charge from UK landlines. Communications with shareholders are mailed to the address held on the register. Any noti cations and enquiries relating to shareholdings, including a change of address or other amendment should be directed to Equiniti Limited at the address above. #### Other information Shareholder enquiries General enquiries about the Company should be addressed to the Company Secretary at the address provided. Company number 02930057 Dealing Codes ISIN Number: GB0008022849 SEDOL Number: 0802284 Ticker: SJG Global Intermediary Identi cation Number (GIIN) 7T0909.99999.SL.826 Legal Entity Identi er (LEI) 549300SSPK3AXNJOC673 Privacy notice The Company’s privacy notice is available on its web pages. ![]() 82 Schroder Japan Trust plc Annual Report and Financial Statements 2026 #### Section 1: Overview #### Section 2: Investment Manager’s Review #### Section 3: Strategic Report #### Section 4: Governance #### Section 5: Financials #### Section 6: Other Information (Unaudited) Concentration risk The Company may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the Company, both up or down. Counterparty risk The Company may have contractual agreements with counterparties. If a counterparty is unable to ful l their obligations, the sum that they owe to the Company may be lost in part or in whole. Currency risk If the Company’s investments are denominated in currencies di erent to the currency of the Company’s shares, the Company may lose value as a result of movements in foreign exchange rates, otherwise known as currency rates. Derivatives risk Derivatives, which are nancial instruments deriving their value from an underlying asset, may be used to manage the portfolio e ciently. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the Company. Emerging markets & frontier risk Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty operational and liquidity risk than developed markets. Gearing risk The Company may borrow money to make further investments, this is known as gearing. Gearing will increase returns if the value of the investments purchased increase by more than the cost of borrowing, or reduce returns if they fail to do so. In falling markets, the whole of the value in such investments could be lost, which would result in losses to the Company. Liquidity risk The price of shares in the Company is determined by market supply and demand, and this may be di erent to the net asset value of the Company. In di cult market conditions, investors may not be able to nd a buyer for their shares or may not get back the amount that they originally invested. Certain investments of the Company, in particular the unquoted investments, may be less liquid and more di cult to value. In di cult market conditions, the Company may not be able to sell an investment for full value or at all and this could a ect performance of the Company. Market risk The value of investments can go up and down and an investor may not get back the amount initially invested. Operational risk Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the Company. Performance risk Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macroeconomic environment, investment objectives may become more di cult to achieve. Share price risk The price of shares in the Company is determined by market supply and demand, and this may be di erent to the net asset value of the Company. This means the price may be volatile, meaning the price may go up and down to a greater extent in response to changes in demand. Smaller companies risk Smaller companies generally carry greater liquidity risk than larger companies, meaning they are harder to buy and sell, and they may also uctuate in value to a greater extent. ## Risk Disclosures ![]() ![]() Important information: This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any nancial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Schroders has expressed its own views in this document and these may change. Issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU, which is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored. #### Schroder Investment Management Limited #### 1 London Wall Place, London EC2Y 5AU, United Kingdom T +44 (0) 20 7658 6000 #### @schroders schroders.com