FY2025 Financial Results and Progress on the Mid-term Plan

FY2025 Financial Results and Progress on the Mid -term Plan May 14, 2026

Contents

03

01

Key points 2

Progress on the Mid-term Plan "Aozora 2027" and FY2026 Business Strategy

----- 30

02

FY2025 Financial Results and FY2026 Earnings and Dividend Forecasts

--- 6

• Outline of Mid-term Plan "Aozora 2027" and progress on KPIs

  ----- 31

  Financial highlights 7

  FY2026 earnings and dividend forecasts 8

  P/L 10

• P/L summary 10

• Results by business segment 12

• Net interest income 17

• FY2026 business strategy 32

• Strategic Investments Unit 33

• Market & International Business Unit 35

• Customer Relations Unit 36

• Alliance with Daiwa Securities Group 37

• GMO Aozora Net Bank 38

  ---

  • Non-interest income / Gains/losses on stock transactions / Gains/losses on equity method investments

    18

    Enhancing Corporate Value 39

    04

    
    
    

    Balance sheet 19

  • Balance sheet summary 19

  • Loans -Domestic- 20

  • Loans -Overseas- 21

  • Asset quality 22

  • Securities 23

  • Funding 24

  • Funding policy in light of interest rate normalization 25

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  • Investments & funding structure / Impact of higher yen 27

    06

    
    
    

    interest rates

• Improvement of PBR and ROE 40

• RORA and capital allocation 41

• Enhancement of risk management systems 42

• Aozora's Sustainability Targets 43

• Human resources strategy 45

• Leveraging AI and cybersecurity 46

• Logic tree 47

05

Capital Policy 48

Capital adequacy ratio 28

Group companies 29

Appendix

- 51

(Note) "1Q" refers to the period from April to June,"2Q" refers to the period from July to September, "3Q" refers to the period from October to December, "4Q" er fers to the period from January to March, "1H" and "interim" refer to the period from Aprilot September, and "2H" refers to the period from October to March.

01

Key points

Key points -FY2025 financial results-

• Profit attributable to owners of parent : 25.7 billion yen (+17% vs. forecast, +25% yoy)

• Full-year dividend per share : 91 yen (+3 yen vs. forecast, +12 yen yoy)

  Domestic Business

• Domestic loan outstandings increased by 260 billion yen , or 9%, compared with March 31, 2025. The difference in yields between domestic loans and deposits widened by 0.12% year-on-year, leading to a 10.3 billion yen , or 41%, increase in domestic net interest income

• Non-interest income increased by 9.3 billion yen , or 25% year-on-year driven by growth in LBO loans and capital gains from investment funds resulting from increased M&A activity

• Customer and transaction referrals from the Daiwa Securi ties Group increased, with partnership effects exceeding t he plan, reaching 3.5 billion yen (on a business profit basis)

  Overseas Business

• Overseas net interest income decreased by 6.6 billion yen yea r-on-year, partly due to a decrease in overseas loan outsta ndings by 450 million U.S. dollars, or 5% compared with March 31 , 2025 and narrower market credit spreads

• With regard to U.S. office loan NPLs, the special treat ment period was completed in FY2025, and from FY2026 onward, we will shift to a more normalized risk management approach while continuin g to reduce their outstandings

  Other Growth Areas, etc.

• GMO Aozora Net Bank achieved a net income of 1.7 billion yen with corporate accounts exceeding 240,000 and deposits exceeding

  1.3 trillion yen

• Sales of fund wrap products and investment trusts to retail customers were strong, and AUM including Aozora Investmen t Management's products increased by 101.4 billion yen , or 16%, compared with March 31, 2025

• Achieved 4th place in the league table for domestic syndicated loan transacti ons*, driven by growth in our origination and distribution (O&D) business

• Initiated the disposal of legacy securities without maturity dates, reducing the balance of credit ETFs by 178 million U.S. dollars , or 38%, compared with March 31, 2025

* Source: LSEG (formerly Refinitiv) (mandated arrang er category)

Key points -FY2025 financial results-

Domestic loan outstandings

(trillion yen)

Loan-related fee income

(billion yen)

3.1

2.9

2.5

12.5

9.2

8.0

End-Mar. 2024

End-Mar. 2025

End-Mar. 2026

FY2023 FY2024 FY2025

Domestic net interest income and differences in yie lds between domestic loans and deposits

(billion yen)

Yield on loans

Gains/losses from limited partnership

(billion yen)

18.2

Differences in yields between domestic loans and deposits

Yield on deposits

Domestic net interest income

18.6

0.90%

0.76%

0.14%

25.2

1.14%

0.92%

0.22%

35.5

1.50%

1.04%

0.46%

11.3

6.9

6.4

12.6

FY2023 FY2024 FY2025

FY2023 FY2024 FY2025

Real estate/ Distressed loan-related

Buyout/venture-related Other