Giving our all, for TOKYO.

Tokyo Kiraboshi Financial Group
Medium-Term Business Plan
(FY2024–FY2026)[Outline]

Review of Previous Medium-Term Business Plans
Merger of the three predecessorbanks (2018/5)

2018/32021/3

KiraboshiFirst MediumTerm Business Plan

2024/3

Kiraboshi
Second MediumTerm Business Plan

Core OHRCost(Kiraboshi Bank non-consolidated)

80.2%

75.7%

Net incomeIncome(Tokyo Kiraboshi FG consolidated)¥3.6 billion¥4.1 billion¥24.0 billion

Profit from customer business(Kiraboshi Bank non-consolidated)¥24.9 billion¥1.4 billion◎

Kiraboshi ThirdMedium-Term Business
Plan (current plan)

Further efficiency
improvement

Substantial cost reduction
through systems integration,
branch network reorganization,
streamlining of headquarters
operations and other measures

Improve productivity throughconsolidation of branches forcorporate customers and useof highly specialized humanresources

Strengthening of profitability
Review of income structure

Improvement in profitability
through business financing,promotion of transactions formain bank relationship building
and other activities〇

Strengthen profitability ofGroup companies△Exit equity investments

Profitability ofGroup companies

Monetize digital strategy(¥4.9 billion)

Capital ratio(Tokyo Kiraboshi FG consolidated)

CapitalThree challenges

58.1%

2024/4

Performance review

8.8%

8.3%

8.1%

△
△

Enhancement of equity
capitalDecline in capital ratio due toaccumulation of riskweighted assets

Redemption (Repayment) ofpreferred shares

Accumulate internal reserves
to secure funds for redemption(repayment) of preferredshares
Control risk-weighted assets
being mindful of RORA

2
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Purpose / Social issues to be addressed
Establishment of purpose

Social issues to be addressed and ourresponses

PurposeGiving our all, for TOKYO.

★ Support for SMEs in improving
their business value

Realization of asustainable
society

Management Philosophy

Accomplish the goals of contributing to society,seeking growth of the organization, achieving selffulfillment and realizing one’s own happiness★ Medical (management)
support★ Support for the elderly andchild raising generation

To be a financial group for small and mediumsized enterprise customers and individual
customers in the Tokyo metropolitan area that
contributes to the development of local
communities through comprehensive financial
services

Kiraboshi Philosophy★ Support for SMEs in theirdecarbonization efforts

Creation ofnew social
values andindustries

Vision ofthefuture

Comprehensive service businessthat is also strong in financeand resolve TOKYO’sissues★ Group-wide contribution toregional development★ Start-up support★ Support for overseas
expansion from the TOKYOmarket

Key strategies■ Group strategy■ Corporate customer
strategy

Principles of action guideline for“Kiraboshibito”
Have high aspirations
Always think “how it can be done”
Be committed to results and continuously take oncourageous challenges

Kiraboshi Group’s collective
efforts to provide integrated
solutions

Responses toissues
accompanying
progress indigitalization★ Delivery of new financial
functionsSocial infrastructure (securityand safety)★ Financial services support for
the elderly and young people■ Retail customer strategy■ Digital strategy■ Branch strategy■ Financial strategy★ Ensuring that foreigners haveaccess to financial services

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Management Targets
FY2026FY2023 (outlook)

Strengthening of profitability and review of income structure

Net income(FG consolidated)

Profit of Groupcompanies(FG consolidated)¥24.0 billion¥30.0 billion■ Group company strategy➢ Strengthen integrated solutions capability applying digital, solutions and otherbusinesses➢ Build a business model that does not depend on Kiraboshi Bank’s loan
income■ Corporate customer strategy(¥0.3 billion)

5.0 billion➢ Strengthen various solutions functions➢ Provide hands-on support for equity investees¥* excluding Kiraboshi Bank

■ Retail customer strategy➢ Provide consultation-based comprehensive services➢ Respond flexibly to customer needs through diverse channels

ROE(FG consolidated)

7.1％

High7% range■ Digital strategy➢ UI Bank to promote digital-driven retail areas (deposits/loans)➢ Strengthen functions and services as a platform for new businesses

Further efficiency improvement

Core OHR(Kiraboshi Bank nonconsolidated)

58.1％

50

Mid%
range

■ Branch strategy➢ Optimum personnel allocation through consolidation of branches for corporate
customers and expansion of offices specializing in retail customers➢ Headquarters and branches working together to provide high value-addedservices

Enhancement of equity capital

Capital ratio(FG consolidated)

8.1％

8.3％

■ Financial strategy➢ Accumulation of internal reserves to secure funds for redemption(repayment) of preferred shares➢ Risk-weighted asset control that is mindful of RORA

* Figures for “FY2023 (outlook)” represent the outlook at the time of disclosureof the results for the first half of the fiscal year ended March 31, 2024

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Transformation of income structure
1While controlling assets particularly loan balance, transform business model to ensure a certain level of fee income

2Equity investment to respond to the needs in business succession and business transfer, and hands-onsupport

3

Respond to customers’ diverse needs with the collective strength of the Group and seek improvement of Group
companies’ profitability
Previous Medium-Term Business Plan (FY2021 - FY2023)

Current Medium-Term Business Plan (FY2024 - FY2026) (in ¥100 million)

Credit-related
costs

3+58
Corporate
customerbusiness+42

Fundincome+3(6)Profit ofGroup
companies

Interest on loans anddiscounts

Fundincome+35+27

Profit of Group
companies

(85)

240

OthersFG
consolidated
profit+53(2)FG
consolidated
profitInterest on loans
and discounts

+187

2

1

300

Others(30)(23)

Corporate
customerbusiness

Credit-related
costs

FG
consolidated
profit41
FY2020

FY2023

FY2026

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Capital Policy
Approach to preferred shares
After assessing the Company’s business environment and with consideration for the status of internal
reserve accumulation and capital ratio,⚫ with respect to First Series Class I preferred shares (*1),

Redeem the shares over the period from FY2026 to FY2029, and aim to complete redemption⚫ with respect to Class II preferred shares (*2),

Redeem the shares in FY2026 and FY2028, and aim to complete redemption
Consider completing redemption ahead of schedule depending on market environment(*1) Sumitomo Mitsui Trust Bank, Limited ¥15 billion (*2) Tokyo Metropolitan Government ¥40 billion

Policy on shareholder returns
Basic policy is to make continuous and stable dividend payments. For the period covered by the current Medium-Term Business
Plan (FY2024–FY2026),

target payout ratio of around 20% even after redemption of preferred shares, and secure capital ratio of 8.3%
Reduction in cross-shareholdings (listed shares)
During the period covered by the current Medium-Term Business Plan (FY2024–FY2026), aim to reduce crossshareholdings by around 40% in terms of book value(FY2023 book value balance approx. ¥15 billion → FY2026 book value balance approx. ¥9 billion)

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