Medium-term Strategic Plan 2023
May 11, 2023

Contents

1. Executive Summary

7. Shareholder Returns andDividend Policy

2. Business Environment andIssues on Our Radar

8. Initiatives to Enhance Compliance3. Our Vision

9. Key ESG Initiatives

4. Growth Strategies

10. Key Takeaways

5. Collaboration with SBI Group
Companies and Outside Partners
6. Numerical Targets

Copyright© 2023 ARUHI Corporation. All Rights Reserved.

11. Executive Summary

1

 Expand variable interest rate products and strengthen sales
Get the housing loanchannels through collaboration with outside partners including SBIGroup companies
business onto regrowthtrack Become the first choice of customers and realtors together with Flat
35, our No.1 product in terms of volume
 Strengthen new channels as below to capture more mortgagetransactions in additions to realtor channels

2

Acceleratetransformation into Create demand for relocation and mortgage by becoming
a homebuying company
consultation partner of customers on a property and mortgage in all
respect when they start considering relocation

3

Create demandby utilizing data

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 Provide customers with one-stop homebuying services fromrelocation to mortgage, and accumulate relocation database Aim for further growth by utilizing the database and creating further
demand for relocation2

2. Business Environment and Issues on Our Radar
We identified issues to be tackled in the medium-term strategic plan to address a rapidly changing businessenvironment and increasingly diverse lifestyles
Business environment as we see it
Ongoing high property prices
Current
business
environment

Growing demand for lower monthly repayments amid
inflation
Current consumer preference for variable interest rate
products

Growth in homebuying demand amid increasingly
diverse lifestyles
Longer-term
outlook on
environment

Enhanced asset value of pre-owned homes, e.g.,
growth in number of energy-saving certified homes

Issues on our radar
Expand the product lineup,
including competitive
variable interest rate
products (deal withoverdependency on Flat products)

Expand customer outreachand enhance products forhomebuying support
services (at present, both
homebuyers and realtors facenumerous difficulties)

Increase in homebuying with a view to selling

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33. Our Vision 1/2

Value ARUHI provides to customers
Support to customers insearching towns andproperties livable forthemConsultation partner toease anxiety about
homebuying

Housing loan products
to address various
needs

Diverse consultation
channelsComprehensive homebuying support
ARUHI’s Vision

Transformation into a homebuying service company
that helps with your search, purchase, and living

Helping customers make their most important “day” the best it can be
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4

3. Our Vision 2/2｜Flow of support as a homebuying service company
By adding new stages such as town search and homebuying consultation to the flow of homebuying
starting with property consultation, we assist customers in successful homebuying based on their life stages
Flow of homebuying

Town andproperty
searchHomebuying
consultation

Real estatecompany network

Life event

Housing loans(fixed andvariable rate)

Property
consultation
Housing loan
consultation

Housing loan business (B2B2C)

Loans toenablehomebuying

Successful
homebuying
Lifestyleservices

Homebuying-related business (B2C)

Variousinsurance

Movingservices

Homebuying
consulting

Flow before medium-term plan 2021
Flow being Strengthened

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5

4. Growth Strategies 1/5｜Navigation map
Expanding customer outreach for homebuying consultation services, and enhancing financial instruments andchannels for more mortgage referrals to grow as a homebuying service company
Lead Generation

Nurturing

Conversion(1) Expand customer outreach forhomebuying consultation
Town andproperty
searchHomebuying
consultation(2)–(4) Enhance financial
instruments and channels
for more mortgage referrals
Housing loans(fixed andvariable rate)

Property
consultation
Housing loan
consultation

Life event

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Loans toenablehomebuying

Successful
homebuying
Lifestyleservices

Homebuying-related business (B2C)

Variousinsurance

Movingservices

Homebuying
consulting

Housing loan business (B2B2C)

6

4. Growth Strategies 2/5｜(1) Expanding customer outreach for homebuying consultation
Striving to be the first choice of customers for homebuying consultation by expanding the lineup of
homebuying support products and services through collaboration with the SBI Group and outside partners,
TownU, and the use of homebuying data
Use of data

Expanding channels to capture homebuying
consultation

Use of data

More sophisticatedhomebuying
consultation

Expanding the lineup of
homebuying support
products and services
Realtors

Annual unique users

22 million*1

Aiming to be the first choice

Homebuying
consultation

SBI Group customer base

Just under
44 million*2
Collaboration with outside
partners including realtors*1 FY2022

Homebuying
support products
and services*2 Source: Materials for the information meeting held by SBI Holdings, Inc. dated December 5, 2022

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7

4. Growth Strategies 3/5｜(2) Creating full lineup of housing loan products across allchannels Aim to be the first choice of realtors by developing ARUHI original variable interest rate products (jointlywith SBI Shinsei Bank) and utilizing IT to speed up processing
Broad customer outreach for bothvariable and fixed interest rate products

Realtors

Variable interest
rate products

Handle both variable and fixed interest
rate products across all channels

Banks’ products
Upper income
brackets
New
Lower, middle
income brackets

ARUHI original
products(jointly developed withSBI Shinsei Bank)Franchisees

Customers

Directly operated
sales offices

Aiming to be the first choice
Fixed interest
rate products

Upper income
brackets

Lower, middle
income brackets

Franchisees

Flat 35(guarantee type,
purchase type)

Directly operated
sales offices

Utilize the power of IT to accelerate processing speed
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8

4. Growth Strategies 4/5｜(3) Developing new channels to augment existing sales network
Enhance new mortgage transactions for our existing sales network by referrals of Flat 35 from SBI Shinsei
Bank and banks with close ties to the SBI Group and reinforcement of tie-ups with realtors led by headquarters

New

Customers

Collaboration with SBI Shinsei
Bank and banks with close ties
to the SBI Group

Realtors
New

Headquarters takes the leadin strengthening tie-ups withrealtors
Existing sales locations+ new regional
partnerships

Existing sales
network(franchisees,
directly operated
sales offices)

ARUHI Direct

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9

4. Growth Strategies 5/5｜(4) Revising sales office format and building stronger
relationships with realtors
Strengthening relationships with realtors by expanding the network of sales offices specializing in outreach tountapped areas and strategic regions, and reinforcing branch office-based sales
Capturing business through collaboration between branch offices and franchisees

Sales support

Sales outreach

Housing loan
consultation andcontracts
Supporting franchisees
in capturing business

Existing sales
network

ARUHI-ledcollaboration withrealtors
Branch offices,
headquarters

Building stronger
relationships with
regional realtors

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Expanding sales offices
in untapped areas andstrategic regions

Franchisees

Franchisees

Directly operated
sales offices

Directly operated
sales offices

New

Branch offices(Hub)Specialized sales
office (Spoke)

105. Collaboration with SBI Group Companies and Outside Partners
Expand customer outreach for homebuying-related services and mortgages leveraging collaboration with SBIGroup companies and outside partners, and enhance the lineup of mortgages and homebuying-related financeproducts
Lead Generation

Nurturing

Product & Service Conversion

SBI Groupand outside
collaboration
Outside partnerships
Outside partnerships

Town andproperty search

Outside partnerships

Homebuying
consultation

Life event

Property
consultation
Real estatecompany network

Banks with SBIGroup ties

Housing loan
consultation
Franchisees Directly operated
sales offices
OnlineCopyright© 2023 ARUHI Corporation. All Rights Reserved.

Housing loans(fixed andvariable rate)

Variousinsurance

Loans toenablehomebuying

Successful
homebuying
Lifestyleservices

Movingservices

Homebuying
consulting11

6. Numerical Targets｜Number of loans executedWill return to FY2019 level in three years and accelerate the pace of loan growth through new homebuyingrelated sales channels from year three of the medium-term strategic plan
Target for loans executed
Get housing loan businessback onto growth track

Roadmap
Build foundation for
homebuying-related business

Growth drivers

Reap full benefits ofcollaboration
between businesses

New sales channels
B2C (as a homebuying service company)• Expand B2C product distribution along with growth ofhomebuying-related business
B2B2C• Tie up with realtors led by headquarters• Collaborate with SBI Shinsei Bank and banks with close
ties to the SBI Group

Existing sales channels

 Expand variable interest rate products that can be soldat franchise offices
FY2021
FY2021
results
実績

FY2022
FY2022
results
実績

FY2023
FY2023
forecast
見通し

FY2025
FY2025
FY2026 FY2027
FY2027
plan
plan
計画
計画
計画
計画
■ Existing sales channels (franchisees, directly operated sales offices, wholesale, direct contact from customers)
既存チャネル（FC・直営・WS・ダイレクト）
Newチャネル■ New sales channels

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FY2024～～FY2020
FY2020results
実績～～

FY2019FY2019results
実績

 FY2025: Return to FY2019 loan execution levels

 FY2027: Variable interest rate products account for justunder 50% of all products

126. Numerical Targets｜Management indicators
Aim for income before tax of ¥10 billion in five years (FY2027)(Millions of yen)

FY2022Medium-term strategic plan 2023
FY2023

FY2025

FY2027

forecast

plan

plan

22,601

21,00031,00040,00012.3%

15,09013,50020,60026,600

12.2%

7,511

7,500

10,40013,400

12.5%

Income before tax

4,119

3,000

7,200

10,00020.4%

Pre-tax profit margin

18%

14％

23%

25%

—

results

Operating revenue
Housing loan business(Loan execution, finance)

Other businesses(Other than described above)

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CAGR（FY2022– 2027）

13

7. Shareholder Returns and Dividend Policy
Basic principle:
Setting out a minimum payout ratio of 35~40% , while balancing future growth investments and stabledividends for shareholders after comprehensively taking into account the level of ROE and financial leverage.
Aim for an increase in dividend amount through profit growth in the medium-to-long term.
100

Dividend per share (unit: ¥)1株当たりの配当額（円）90

Net income
当期利益

80
70
60
50
40

30
20

44

55

51

60

55
40

10

FY2019FY2020Results
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FY2021

FY2022

FY2023

FY2024FY2025～～FY2018～～0

FY2026FY2027

Forecast / Plan
14

8. Initiatives to Enhance Compliance
We are taking a range of initiatives to reinforce compliance while further utilizing digital technology for ongoing
reinforcement of administrative processes

Compliance-related governance Established Compliance Committee
consisting of representative directors,
directors, executive officers, and generalmanagers, the Compliance Division, andthe role of Chief Compliance Officer(CCO) Internal whistleblower system thatenables reporting when material facts
regarding compliance come to light Framework consisting of three lines ofdefense encompassing operational
departments, compliance division, andinternal audit division

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Group-wide complianceprograms

Reinforcing appropriate sales
office management framework Determine annual complianceprograms approves by the Board of
Directors

 Foster compliance awareness throughregular education, training, and selfassessments for all employees Appoint compliance promotion
managers at branch offices closer tofront line operations to enhance
regional compliance Regular inspection and guidance
through visits to all sales offices

 Have compliance interviews with all
franchisees’ employees and new store
managers of both franchisees anddirectly operated sales offices Further utilization of digitaltechnology for the purpose ofmanaging Flat 35 appropriately

15

9. Key ESG Initiatives

Through our transformation into a homebuying service company, we will help form a circular society thatencourages the use of existing housing stock and bring about sustainable lifestyles
Environmental
initiatives

Mitigating environmental impact and addressing climate change by forming acircular society that encourages the use of existing housing stock Supporting acquisition of quality pre-owned housing Encouraging the adoption of environmentally friendly
housing on a larger scale

Social initiatives (1)Gender ratio

Fostering and developing humanresources that generate social value,
and respecting individuals
Return after maternity
and childcare leave Promoting sustainable finance• Establishment of sustainable finance framework• Issuance of green residential mortgage-backed securities(RMBS)

Social initiatives (2)Proposing satisfying, sustainable
lifestyles suited to each individual

Ratio of female
managers

21%
female
女

male
男

95%

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16

10. Key Takeaways
We are providing homebuying services integrating real estate and finance, and expanding relocation market byutilizing accumulated customer data for further homebuying service so that we will accelerate our growth.
Increase in the number ofhousing loans by providing
homebuying services that
integrate real estate and finance

Growth in relocations
depending on lifestyles,
and expansion of therelocation market

Providing one-stop
homebuying service

Growth in service
users of partners

Accumulation of
relocation data

Outside partnerships

Providing partners’
products andservices

Providinghomebuying data

Establishment of homebuying
support system to resolve
customer’s difficulties at the timeof relocation
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17

Disclaimer
These presentation materials are based on economic, regulatory, market, and other conditions that were valid as of the date of the preparation of the materials. The
Company makes no guarantees with respect to the accuracy or completeness of the information in the presentation materials. Future trends may impact the information
contained in the presentation materials, and the Company undertakes no obligation to update, revise, or confirm the information contained in the materials. The
Company may change the information contained in the presentation materials without prior notice, and such changes may be significant. The presentation materials andits contents may not be disclosed or used without the prior written consent of the Company. The presentation materials may contain forward-looking statements(including estimates, forecasts, targets, and plans). These forward-looking statements do not constitute a guarantee of future performance by the Company’s
management team. The forward-looking statements used by the Company may include statements containing words such as “aim,” “project,” “believe,” “continue,”“attempt,” “estimate,” “predict,” “measures,” “intend,” “may,” “plan,” “potential,” “probable,” “design,” “risk,” “pursue,” “should,” “endeavor,” ”target," “schedule," and othersimilar expressions. Furthermore, forward-looking statements may sometimes be found in discussions related to strategies, plans, and intentions. The forward-looking

statements in these presentation materials reflect the assumptions and beliefs of the Company’s management team at the time of the preparation of the materials basedon information available at such time. They involve known and unknown risks, uncertainties, and other factors that may cause the actual results or financial condition of
the Company to be materially different from any future results or financial condition expressed or implied by the forward-looking statements. Information pertaining tocompanies other than the Company or to interested parties, or information prepared by such entities, is based on generally available information and other information
quoted herein. The Company and its advisors have not independently verified the accuracy or appropriateness of such information, and do not make any guarantees withrespect to such information. The financial information used in these presentation materials, unless otherwise expressly stated, has been prepared in accordance with
International Financial Reporting Standards (IFRS) developed by the International Accounting Standards Board (IASB).

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18

A NEW JOURNEY BEGINS