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Initiatives to Improve Corporate Value

Securities Portfolio Securities portfolio *1 2021/3 2022/3 2023/3 (JPY bn) (a) (b) (c) Unrealized gains/(losses) (d) Available-for-sale (1) 4,480.7 4,159.5 3,886.8 472.9 securities Stocks (2) 325.2 305.9 283.8 578.0 Bonds (3) 2,586.4 2,940.1 2,400.2 (57.5) JGBs (4) 925.7 1,137.3 645.3 (39.4) Average duration (5) 13.1 9.3 12.8 (years) Basis point value (6) (1.21) (1.15) (0.78) (BPV) Local government and (7) 1,660.6 1,802.8 1,754.9 (18.0) corporate bonds Other (8) 1,569.0 913.3 1,202.6 Foreign bonds (9) 904.8 562.5 721.5 (47.5) (34.2) Average duration (10) 6.3 6.2 5.8 (years) Total of Group Banks Status of policy-oriented stocks held*2 Balance of listed stocks disposed in 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 ■ Policy for holding policy-oriented stocks • 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. Plan to reduce JPY80.0 bn level in 4 years from Apr. '22 ⇒27.5% progress against plan in the first year Basis point value (11) (0.51) (0.26) (0.30) (BPV) Investment trusts [Stock holdings] (JPY bn) (12) 658.4 346.8 474.1 (16.0) (Domestic) 1,397.0 Net unrealized gain (13) 615.3 521.2 472.9 Approx. JPY(1) tn (75)% 3 banks(RB, SR, KO) After KMFG integration Bonds held to (14) 1,942.2 2,934.7 3,899.0 (95.5) maturity JGBs (15) 1,035.6 1,856.1 2,278.2 (77.5) Net unrealized gain (16) 11.5 (30.3) (95.5) CLO: Zero 397.8 325.2 305.9 283.8 2003/3 4 4 2005/3 2021/3 2022/3 2023/3 (Reference) Market value : 980.8 892.3 861.9 *1. Acquisition cost basis. The presented figures include marketable securities only *2. Policy-oriented stocks are classified into (i) policy investment stocks and (ii) strategic investment stocks, according to the purpose of holding. Of these, (i) policy investment stocks are targeted for reduction of the balance. All listed shares held by group banks are (i) policy investment stocks (30.3) Resona Holdings, Inc. 15
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