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Investor Presentaiton

FY2020 performance and dividend forecasts For FY2020, we forecast profit attributable to owners of the parent of 22.5 billion yen, down 1.7 billion yen from the previous year. We project annual dividends of 24 yen per share in FY2020, based on the new payout table, up 1.50 yen from the previous year. FY2020 performance and dividend forecasts [Business forecast] (Billion yen) Forecast for FY2020 YOY change Net interest income 68.0 -3.0 Net fees and commissions income 16.7 1.3 Gross income from core businesses 84.7 1.0 Expenses (-)* 54.3 1.6 Net income from core businesses 30.4 -0.6 Gains/Losses related to securities 6.7 -2.6 Credit costs (-) 4.5 0.3 Ordinary profit 33.5 -3.9 Net income 24.0 -0.1 Profit attributable to owners 22.5 -1.7 of the parent [Projected dividends] Dividend per share Profit attributable to owners of the parent 1 Fixed 2 Performance- based 1+2 Consolidated payout ratio 22.5 billion yen 18 yen 6 yen 24 yen 33.2% Market scenarios used in performance forecasts JPY TIBOR3M: 0.07%; 10-year JGBS: -0.02%; exchange rate (USD/JPY): 107.0 yen; Nikkei Average: 18,500 yen *: Performance forecasts for FY2020 include 1.5 billion yen (up 1.5 billion yen year-on-year) in costs of rebuilding the Head Office building. • • • <Environmental conditions of FY2020 performance forecasts> We assume interest rate, exchange rate, and stock market scenarios within the same range over recent years. The projected impact of COVID-19 is based on the information available to us at this time. However, these forecasts are subject to vary sharply due to the following factors if the slowdown in economic activity and other results of the pandemic extend for longer than anticipated. (1) Further increases in credit costs These forecasts call for an increase in credit costs due to worsening business conditions for customer firms impacted by COVID-19 of roughly 50% of the anticipated maximum cost (approx. 2 billion yen) in the restaurant/bar and lodging industries, the industries of greatest concern with regard to COVID-19. Credit costs may increase still further due to changes in borrower categories or other developments if the impact expands to manufacturing and other industries. (2) Impairment due to falling stock prices • Stock markets have been remarkably unstable since the outbreak of COVID-19. A future drop in stock prices could lead to the impairment of issues held. Any necessary revisions to performance forecasts will be disclosed promptly. 8
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