JAPAN POST BANK : Notice Concerning Formulation of Medium-term Management Plan (FY2026 through FY2028)

Medium-term Management Plan (FY2026 through FY2028)

May 15, 2026

The five-year period of the previous Medium-term Management Plan (FY2021 through FY2025) has ended.

Over this five-year period, our business environment has changed dramatically. In particular, there have been changes in population trends and social structure, as well as the remarkable progress in the digitalization of society, such as the shift to cashless payment and the emergence of generative AI. In the financial and economic environment, we are facing a major paradigm shift, as the United States and others have turned from raising interest rates to control inflation to lowering them, while in Japan the era of positive interest rates has arrived, and interest rates are rising.

Under this environment, we boosted the capabilities of all employees to achieve our highest earnings since listing for three consecutive fiscal years, and we believe that we have made substantial progress on increasing our corporate value, including our market cap breaking above ¥10 trillion at one point during FY2025.

Additional successes included the Yucho Bankbook App growing to become one of the largest among Japanese banks (16.62 million accounts at the end of FY2025), and the restructuring of the yen interest rate portfolio. In addition, we made significant progress on the privatization process with two global offerings, building momentum for further growth in our business going forward. In this way, we have now entered a new stage of working toward non-linear growth.

Meanwhile, the Bank's operating environment continues to change, and we must also continue to evolve. As we look to continue providing all of our customers

with distinctive Japan Post Bank value going forward, we have had countless internal discussions about who we want to be.

We have formulated the following two medium- to long-term vision statements, which describe who we want to be in 15 years' time (2040).

• "Japan's leading comprehensive financial platform," meeting customers' diverse needs and accompanying them through life

• "A leading global market player" aiming to increase the value of customers' assets and realize a sustainable society through investment in Japan and overseas

The new Medium-term Management Plan (FY2026-FY2028) is positioned as the first step toward realizing this Medium- to Long-term Vision. Through the promotion of our business strategy, we aim to achieve non-linear growth that breaks from our previous trend, with net income of ¥1 trillion or higher and ROE of around 10% in the final fiscal year.

We will remain committed to our purpose, "We aim for the happiness of our customers and employees, and to contribute to the development of societies and local communities," as we strive to meet the expectations of all stakeholders, including shareholders and customers, by balancing the resolution of social issues through our business with the pursuit of economic value, and by pursuing the sustainable enhancement of corporate value.

We invite you to look forward to the next stage that we endeavor to create.

President & CEO, Representative Executive Officer

Member of the Board of Directors

New Medium-term Management Plan (FY2026 through FY2028)

-Strategies and Targets

Medium- to Long-term Vision

(15 years in the future)

Mission

① "Japan's leading comprehensive financial platform," meeting customers' diverse needs and accompanying them through life

② "A leading global market player" aiming to increase the value of customers' assets and realize a sustainable society through

investment in Japan and overseas

Growth Strategy (KPIs for End of FY2028)

① We provide diverse financial services to support the era of 100-year lifespans for customers throughout Japan via post offices, apps, and other channels, together with our partner companies.

② As one of Japan's largest institutional investors, we maximize performance and develop a distinctive asset management business. Business Strategies and Supporting Management Base, Underpinned by a Customer and Deposit Base Centered on Post Offices and Related Channels

KPI

Number of accounts registered for the Yucho Bankbook App: 25mn

Enhancement of customer and deposit base

KPI

Number of users of long-term asset-building system*2

: 1.1mn

KPI

Investments executed through subsidiary General Partner*1.

: Approx. 60 deals executed, totaling approx. ¥ 60.0bn

KPI

Net interest income, etc.*3: Over ¥ 2.3tn

Forge Alliances with Partner Companies, Promote Human Capital Management and Corporate Culture Reforms, and Improve the Management Base

Sustainability Management (Engaging in Four Material Issues Linked with Business Strategies to Resolve Social Issues)

• Consider optimal balance of shareholder returns, financial soundness, and growth investment.

• Implement progressive dividends through profit growth, with a dividend payout ratio of approx. 50%. Currently, set at pays dividends annually at year-end.

• Share repurchases to be considered on an ongoing basis, based on market conditions, etc.

： Over ¥ 1 tn

： Approx. 10％

： Approx. 40%

： 11~13 %

• Net income

• ROE (based on shareholders' equity)

• OHR

• CET1 ratio*4 (target for normal times)

*1. General Partner: Fund management entity responsible for selecting projects, making investment decisions, etc. *2. Sum of customers using NISA, iDeCo, and the National Pension Fund (includes overlap in customers between systems)

*3. Consolidated, management accounting basis . *4. Based on the fully phased-in final Basel III framework, excluding unrealized gains on available-for-sale securities. Targets for FY2026-FY2028.

Table of Contents

Medium- to Longterm Vision

New Medium-term Management Plan

Previous Medium-term Management Plan (Review)

Appendix

Recognition of Environmental Changes and Medium- to Long-term Vision

• Through our challenges to date, we have increased our corporate value significantly. Now, as we look toward the new Medium-term Management Plan, the Bank has entered a new stage.

• With even more environmental changes expected, the Bank will leverage its unique value and transition to a new phase of non-linear growth breaking from past trends.

• Digital innovation, including AI

• Change to an era of positive interest rates

• Change in role of financial institutions

  Current position = New stage

  Progression of climate change

  Further decline in working population

  Growth in economic disparity

  Lifestyle shift

  15 years in the future

  Further digitalization of finance

• Increase in momentum of shift "from

  savings to investment"

• Decreasing birthrate, aging population, and population flow into cities

  • Paradigm shift in portfolio in response to

    the environment

  • Progress in privatization and increase in ordinary shareholders through global offering

  • Yucho Bankbook App user base now one of the largest among Japanese banks

• Substantial market cap increase since listing, PBR reached 1.0x

• Accumulation of strengths unique to Japan Post Bank

Increasing scrutiny from shareholders and capital markets

Heightened geopolitical risks

Inflation and shift from savings to investment

Acceleration of declining birthrate and super-aging population