Initiatives to Improve Corporate Value slide image

Initiatives to Improve Corporate Value

Initiatives to Reduction of Policy-Oriented Stock Holdings Policy for holding policy-oriented stocks*1 Since the capital enhancement with public funds, Resona Group has reduced the balance of the policy-oriented stocks to lessen the risk of price volatility. Our basic policy is to continue to reduce the balance of policy-oriented stocks. The Group determines whether to hold policy-oriented stocks by evaluating the risks and returns, including feasibility of the development of a trading relationship in a medium- to long-term. The Group may also sell stocks in consideration of the market situations, management and financial strategies, even though the Group considers appropriate for holding from the risk-return perspective. Balance of listed stocks disposed FY2022 (acquisition cost basis): JPY22.0 bn, Net gain on sale: JPY50.4 bn (HD consolidated: JPY50.0 bn) Breakeven Nikkei average: Approx. 7,800 yen Aim to further reduce the balance under the current plan, which accelerated the pace of reduction Steady progress compared to plan (JPY bn) [Stock holdings *2] Approx. JPY(1) tn 1,397.0 (75)% 3 banks(RB, SR, KO) After KMFG integration 397.8 325.2 305.9 283.8 4 2003/3 2005/3 2021/3 (Reference) Market value : 980.8 2022/3 892.3 2023/3 861.9 (30.3) Two Previous Plan Apr. 16 Mar. '21 (5 years) JPY(7.0) bn per year [Plan] JPY(35.0) bn [Act] until Mar. '20 JPY (32.6) bn (Progress rate in the 4 years is 93%) Previous Plan Apr. 20 Mar. '23 (3 years) Current Plan Apr. 22 Mar. '26 (4 years) JPY(10.0) bn per year [Plan] JPY(30.0) bn [Act] until Mar. '22 JPY (30.9) bn (Progress rate in the 2 years is 103%) JPY(20.0) bn per year [Plan] JPY(80.0) bn *3 [Act] until Mar. '23 (1 year) JPY (22.0) bn *4 (Progress rate compared to expected pace [JPY(20.0) bn per year]: 110.1%) Utilized in fields that contribute to solving social and customer issues Organic area [Loans] • . Sustainable finance Loans for retail customers etc. [Equity] Customer's capital support etc. [Growth investment] • Digital investment In-organic area • HR investment etc. Profit growth Solving social issues Shareholder return *1. Policy-oriented stocks are classified into (1) policy investment stocks and (2) strategic investment stocks, according to the purpose of holding. Of these, (1) policy investment stocks are targeted for reduction of the balance. All listed shares held by group banks are (1) policy investment stocks *2. Total of group banks, acquisition cost basis, marketable securities and policy investment stocks only *3. Reference: Market value of about JPY(250) bn (Estimated based on the market value of the policy-oriented stock as of Mar. '22) *4. Reference: Market value of JPY(30.3) bn [ = reduction factor JPY(72.4) bn + market value factor JPY42.1 bn] Resona Holdings, Inc. 69
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