Aozora Bank, Ltd. · TSE:8304

Aozora Bank — Q1 FY2007 Earnings Presentation

24 slides from Aozora Bank's earnings presentation, 2007

  1. Slide 1: Aozora Bank, Ltd. 2007 Q1 Results

    <@ AOZORA BANK, LTD. 2007 1 eT a) | ee

  2. Slide 2: Summary of Q1 FY2007 results

    1. 2007 1 „ * * 1 „ 1 * +11.8 +33.5 „ 300 57.2 „ -0.55 GMAC 1.01 88.8 „ Tier1 0.57 18.07 0.51 16.33 Copyright © 2007 Aozora Bank, Ltd All Rights Reserved. 2

  3. Slide 3: Net income and business line results

    2. „ 11.8 „ REIT 200 250 400 370 350 47 331 160 199 200 300 150 141 172 132 250 149 122 150 200 3 121 100 150 GMAC 67 100 100 196 174 50 121 50 50 0 -4 -50 0 0 -50 FY06/4Q FY07/1Q FY06/1Q FY06/4Q FY07/1Q FY06/1Q FY06/4Q FY07/1Q FY06/1Q REIT FY06/1Q : 30 FY06/4Q : 4 FY07/1Q : 5 Copyright © 2007 Aozor

  4. Slide 4: GMAC results (1/2)

    3. 1/2 „ „ 350 271 300 287 * 261 250 64 109 73 200 46 5 3 30 13 150 47 19 36 18 21 100 GMAC 144 114 108 50 0 -9 -21 * -50 FY06/4Q FY07/1Q FY06/1Q Copyright © 2007 Aozora Bank, Ltd All Rights Reserved. 4

  5. Slide 5: GMAC results (2/2)

    3. 2/2 298 350 308 271 299 294 303 300 287 114 261 83 122 77 250 237 64 77 109 20 73 8 23 25 34 200 43 46 24 25 5 30 19 20 53 3 6 13 41 150 25 19 42 39 35 47 6 36 17 10 14 19 18 21 21 100 136 144 133 138 110 123 118 114 50 108 0 0 0 0 -9 -14 -21 -47 GMAC -50 FY05 FY06 FY07 FY05 FY06 FY07 FY05 FY06 F

  6. Slide 6: Income statement comparison

    4. „ 2006 2006 2007 1 A 4 1 B B-A 107.5 114.0 143.6 36.1 +33.5% 235.1 299.0 347.1 112.0 +47.6% 156.3 208.9 237.0 80.7 +51.6% 55.7 70.3 91.3 35.6 +64.0% 11.2 16.2 16.4 5.2 +46.8% 11.9 3.6 2.4 -9.5 -80.2% -127.6 -185.0 -203.5 -76.0 -59.5% -26.9 -45.8 -49.6 -22.8 -84.8% -14.8 -27.0 -33.1 -18.3 -123.3%

  7. Slide 7: Yields and spreads

    5. „ 0.12 „ „ FY06 FY07 FY06 FY07 FY06 FY07 FY06/1Q FY07/1Q B-A FY06/1Q FY07/1Q B-A FY06/1Q FY07/1Q A B A B A B 1.63% 1.83% 2.23% 2.23% +0.60% 1.63% 1.83% 2.23% 2.23% +0.60% +0.00% +0.00% +0.00% +0.00% 1.90% 2.21% 2.54% 2.54% +0.64% 1.90% 2.21% 2.54% 2.54% +0.64% +0.00% +0.00% +0.00% +0.00% 1.29% 1.

  8. Slide 8: Income comparison by period

    6. „ 1 2006 2006 2007 1 A 4 1 B B-A 35.9 47.2 29.8 -6.0 -16.8% 40.7 51.6 33.4 -7.3 -18.0% 4.8 4.4 3.5 -1.3 +27.1% * „ 9 GMAC 2006 2006 2007 1 A 4 1 B 12.7 3.3 -9.0 -21.7 N/A 12.7 3.2 -7.3 -20.0 N/A -0.0 0.1 -1.7 -1.6 N/A Copyright © 2007 Aozora Bank, Ltd All Rights Reserved. 8

  9. Slide 9: Business line income breakdown

    7. „ 50.4 „ -21 FY06/1Q FY07/1Q FY06/4Q A B B-A 131 96 107 -24 -18.1% 46 5 -21 -66 N/A REIT 30 4 5 -25 -82.6% 85 91 128 43 +50.4% 11 9 -2 -12 N/A 8 2 -3 -11 N/A 8 50 73 65 +803.8% 51 30 35 -16 -31.6% 26 9 20 -6 -24.0% 10 19 12 2 +17.9% GMAC 16 2 4 -12 -75.1% 7 11 5 -2 -31.7% -1 -1 -1 -0 +66.0% GMAC

  10. Slide 10: Overhead ratio (OHR) and expenses

    8. „ „ IT OHR OHR ( : ) 58.4% 60% 500.00 52.1% 52.7% 46.7% 50% 400.00 47.6% 46.2% 47.1% 43.3% 40% 300.00 30% 452.0 462.9 494.0 528.0 531.5 GMAC 200.00 20% 100.00 10% 0.00 0% 04 3 05 3 06 3 07 3 07 6 Copyright © 2007 Aozora Bank, Ltd All Rights Reserved. 10

  11. Slide 11: Income by segment

    9. „ „ 43 2007 FY06/1Q FY07/1Q FY06/1Q FY07/1Q FY06/4Q FY06/4Q A B B-A A B 15 18 16 +1 +5.0% 15 18 16 +1 +5.0% -1 -0 68 58 54 -14 -20.3% 68 58 54 -14 -20.3% 21 21 78 +78 N/A 85 +85 N/A 58 59 28 +28 N/A 28 +28 N/A 23 23 24 +24 N/A 29 +29 N/A 18 17 22 +22 N/A 22 +22 N/A 17 17 3 +3 N/A 3 +3 N/A 2 2 1 +

  12. Slide 12: Loan balances (1/3)

    10. 1/3 „ 20.2% 40,000 CAGR 36,846 36,642 34,893 34,081 31,363 30,000 26,550 24,030 23,660 23,840 23,840 20,000 22,270 20,060 GMAC 10,000 9,818 9,471 7,469 8,552 6,282 4,727 2,811 2,772 2,501 2,998 3,511 1,763 0 2005/9 2006/3 2006/6 2006/9 2007/3 2007/6 Copyright © 2007 Aozora Bank, Ltd All Rights R

  13. Slide 13: Loan balances by sector (2/3)

    10. 2/3 2007 3 2007 6 A B 33,253 100.00% 32,500 100.00% -753 -2.3% 3,359 10.10% 3,204 9.86% -155 -4.6% 52 0.16% 49 0.15% -3 -5.5% 68 0.21% 65 0.20% -4 -5.2% 576 1.73% 557 1.71% -19 -3.3% 500 1.50% 493 1.52% -7 -1.4% 1,075 3.23% 1,049 3.23% -26 -2.4% 1,704 5.12% 1,914 5.89% +210 +12.3% 2,270 6.83% 2,

  14. Slide 14: Loan balances and ratios (3/3)

    10. 3/3 „ „ ( 98.3% 96.0% 95.0% 96.8% 94.6% 91.1% 40,000 88.8% 100% 88.2% 85.7% 80% 30,000 60% 20,000 40% 10,000 14.19% 5.97% 2.95% 3.75% 20% GMAC 0.68% 0.49% 0.69% 0.96% 0.97% 0 0% .3 .3 .3 .3 .3 .6 .9 .3 .6 0 02 0 03 0 04 0 05 0 06 0 06 0 06 0 07 0 07 2 2 2 2 2 2 2 2 2 ( ) Copyright © 2007 Aozora

  15. Slide 15: Securities portfolio

    11. „ FB TB 907 ( : ) 2006 2007 2007 2006 2007 2007 12 3 A 6 B B-A 12 3 A 6 B B-A 10,281 10,228 8,944 -1,283 -12.55% -56 -53 -86 -32 -60.01% 34 38 45 7 +18.11% -0 -0 -0 -0 N/A 666 753 737 -16 -2.18% 0 0 -0 -0 N/A 393 386 326 -60 -15.59% 11 6 6 -0 -4.16% 4,052 3,775 4,054 279 +7.38% -63 -61 -115 -53

  16. Slide 16: Hedge fund investments and HFRX index comparison

    12. „ FY2007 1 FY2006 1 HFRX Index HFRX Index 3M Return 4.32% 4.73% 3M Return 0.37% -0.66% Vol 1.66% 4.94% Vol 2.99% 4.35% Sharpe 7.91 3.04 Sharpe -1.22 -1.79 Risk Free Rate: 5.32% Risk Free Rate: 5.16% 2006 2007 1 06 4 06 5 06 6 06 7 06 8 06 9 06 10 06 11 06 12 07 1 07 2 07 3 1.01% -0.71% 0.08% 0.1

  17. Slide 17: Deposits and debentures funding

    13. „ „ 50,000 48,066 46,405 46,690 46,831 42,760 10,692 10,800 11,916 9,587 40,000 10,291 32,415 32,113 30,000 6,763 5,983 12,026 12,853 15,067 17,463 9,935 7,812 7,769 5,127 20,000 3,334 4,069 2,350 1,631 GMAC 1,038 1,276 4,248 5,625 4,789 4,765 3,484 4,536 4,349 10,000 12,736 13,575 13,771 14,203

  18. Slide 18: Funding comparison

    14. „ 2007 2007 1 B/A (A) (B) 2,290 1,040 571 +54.9% 1,260 565 271 +48.0% 690 310 141 +45.6% 665 300 172 +57.2% 845 465 370 +79.5% GMAC Copyright © 2007 Aozora Bank, Ltd All Rights Reserved. 18

  19. Slide 19: GMAC and FIM

    15. GMAC 1. 6.25 51 FIM* GMAC * 2. 1 GMAC „ „ 2007 3 FIM GMAC Copyright © 2007 Aozora Bank, Ltd All Rights Reserved. 19

  20. Slide 20: CDO and ABS exposure

    16. „ CDO AA ABS A „ 6 USD494.9 1/3=USD170 GMAC „ P/L 44.8 07 6 44.1 0.7 Copyright © 2007 Aozora Bank, Ltd All Rights Reserved. 20

  21. Slide 21: Tier 1 capital

    17. „ 5/15 „ :12 13 Tier1 : 10 11 „ GMAC „ : „ Copyright © 2007 Aozora Bank, Ltd All Rights Reserved. 21

  22. Slide 22: Tier 1 capital ratio trend

    18. „ 15.82% 16.33% Tier1 Tier1 50,000 20% 19.47% 45,126 45,455 45,000 18.70% 19.12% 19% 40,000 37,550 34,672 18.07% 18% 35,000 33,003 18.31% 17.50% 30,000 17% 15.66% 25,000 16.33% 16% 20,000 15.82% GMAC 15,000 15.01% 15% 10,000 8,215 6,1726,046 7,313 7,180 7,1427,897 7,426 5,4315,205 14% 5,000 0 13

  23. Slide 23: GMAC performance chart

    18. „ * * 10% 5% 0% -5% GMAC -10% -15% < : / > Copyright © 2007 Aozora Bank, Ltd All Rights Reserved. 23

  24. Slide 24: Contact details

    http://www.aozorabank.co.jp m1.harada@aozorabank.co.jp a.hunter@aozorabank.co.jp s.lacy@aozorabank.co.jp GMAC r.miura@aozorabank.co.jp k.sengoku@aozorabank.co.jp Copyright © 2007 Aozora Bank, Ltd All Rights Reserved. 24

Aozora Bank — Q1 FY2007 Earnings Presentation on 6ix