Hello everyone. I'm Kei Tanikawa, President and CEO of Aozora Bank.

Thank you very much for making time to watch a video of our fiscal year 2023 interim financial results investors meeting.

Today's presentation material provides an overview of our interim financial results announced on November 13 in the first part and progress on the Mid-term Plan "Aozora 2025" during the second part.

Today, following a brief review of our interim financial highlights, we'll discuss our progress on the Mid-term Plan "Aozora 2025" in the following

order:

"Aozora's Strategic Investments Business," "Aozora's Platform Business," "Investments in Human Capital,"

"Promoting Digital Transformation (DX)" and closing with "Promoting Aozora Sustainability."

Let me now turn to page 3.

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This page summarizes our interim financial results.

Net revenue was 44.5 billion yen with a progress rate of 52% towards our full-year earnings forecast of 86.0 billion yen.

Business-related profit, which was set as a new KPI this fiscal year and is the total of business profit and gains/losses on stock transactions, was 25 billion yen and represented 82% of the full-year plan of 30.5 billion yen.

This result was supported by strong customer-related business, mainly in our Strategic Investments Business.

Profit attributable to owners of parent was 12 billion yen, or 50% of our full-year forecast of 24 billion yen.

Credit-related expenses were a net expense of 9.9 billion yen for the first half, mainly due to additional provisions we made for U.S. office loans in our real estate non-recourse loan portfolio as the work-out process for

these loans progressed. We've made appropriate provisions for U.S. office

loans based on a conservative evaluation.

Unrealized losses on our securities portfolio increased by 28.7 billion yen from March 31 to 92.6 billion yen. This was mainly due to the impact of a weaker yen by 13.6 billion yen and realized gains on bonds and equities.

We continue to operate with a primary focus on controlling the level of risk.

The contents on pages 4 through 27 were already discussed when we announced our interim financial results on November 13 for your review.

Please now go to page 28.

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Aozora Bank Ltd. published this content on 24 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2023 08:21:06 UTC.