May 9, 2023
To whom it may concern
Company: Japan Securities Finance Co., Ltd.
Representative Executive Officer & President: Shigeki Kushida(Code No. 8511, TSE Prime)
Contact: Kentaro Hibi, General Manager, Corporate Governance Office(E-mail:info@jsf.co.jp)

Notice on the Implementation of a Company Stock Incentive Program for Employees

As stated in the press release “Notice on a Company Stock Incentive Program forEmployees” dated November 28, 2022, the Company had intended to grant to employees ofthe Company shares of common stock (hereinafter “Company Stock”) issued by theCompany (hereinafter “Company Stock Incentive Program for Employees”) in accordancewith the Company's performance for FY2022.
As a result of the Company's performance in FY2022 achieving its management target ofan ROE of 4%, the Board of Directors passed a resolution at its May 9, 2023 meeting toimplement the Company Stock Incentive Program for Employees. The details of this are asfollows.
JSF, under its corporate philosophy and the Seventh Medium-term Management Plan(FY2023-FY2025), will strive to be a distinctive and unique company that is agile and flexible
enough to maintain strong financial soundness as a securities finance company that supports
the infrastructure function of the securities and financial markets, and to achieve sustainablegrowth and enhance its enterprise value over the medium and longer term.

１．Aims and objectives of the Company Stock Incentive Program for Employees(1) Improve Employee Job Satisfaction and Motivation
We are aiming to achieve an ROE of 4% in the period of our Sixth Medium-termManagement Plan (until FY2022) and then an ROE of 5% in the period of the Seventh
Medium-term Management Plan (FY2023-2025) as management targets based on theMedium-term Management Policy we announced in November 2021.
As a result of the Company's performance in FY2022 achieving its management targetof 4% ROE, the Company will give Company Stock to our employees with the aim ofimproving their job satisfaction and motivation.
(2) Give an Incentive to Improve Corporate Value in the Medium- to Long-term
Our employees possessing shares in our company will further enhance their interest inimproving our corporate value. Furthermore, we will aim to improve our medium- to longterm corporate value by promoting the sharing of value with our shareholders.

２．Overview of the Company Stock Incentive Program for Employees
Members(2) Provision of special incentives※ Withdrawal of stock(4) Third-party allotment payment(5) Disposition of treasury stock

Members’ stock

ShareholdingAssociation(6) Allocation andmanagement of stock

NomuraSecurities

The Company(3)Contributions(1) Subscription Agreement forCompany Stock(1) The Company and the Japan Securities Finance Employee Shareholding Association(hereinafter “Shareholding Association”) will enter into a stock Subscription Agreement
regarding the disposition and underwriting of treasury stock.
(2) The Company will provide special incentive payments to Company employees whoare members of the Shareholding Association (hereinafter “Members”).
(3) Members will contribute the special incentive payments provided to the Shareholding
Association.
(4) The Shareholding Association collects the special incentive funds contributed byMembers and pays for the third-party allotment.
(5) Company disposes of treasury stock to the Shareholding Association.
(6) The allocated Company Stock is distributed to and managed for the members of theShareholding Association through Nomura Securities Co., Ltd. to which the Shareholding
Association outsources its shareholding operations.
※ Members are able to withdraw their allocated Company Stock to their personal securities
account as they choose.
３．Granting of Company Stocks under the Company Stock Incentive Program forEmployees
In conjunction with the introduction of the Company Stock Incentive Program for
Employees, the Company's Board of Directors passed a resolution today to dispose of
49,000 of its treasury share holdings (8,770,527 shares as of March 31, 2023 (Note)) to a
Shareholding Association. The following is an overview of the Shareholding Association towhich the shares will be allocated.
(1) Name:

Japan Securities Finance Employee Shareholding Association(2) Address:

1-2-10, Nihonbashi Kayabacho, Chuo-ku, Tokyo(3) Director:

Takeharu Hitomi(4) Number of shares held: 375,588 shares (as of March 31, 2023）(5) Shareholding ratio:

0.39% (as of March 31, 2023） (Ratio of total shares issued)

(Note) However, as stated in the press release “Announcement regarding Cancellation ofTreasury Stock” dated March 20, 2023, the Company cancelled 8 million shares of treasury
stock on April 20, 2023, separately from the above disposition of treasury stock.

The Company has also filed a securities notice today regarding the aforementioned
disposition of treasury stock based on the Financial Instruments and Exchange Act. The
number of shares to be disposed of (the number of shares to be offered) stated in thesecurities notice assumes the maximum number of shares to be issued when all employeesof the Company join the Shareholding Association. After a resolution is passed at a meetingof the Board of Directors of the Shareholding Association scheduled to be held today, May 9,
a sufficient period of time will be given for employees to be notified of the plan, and apromotion will be held to solicit applicants for membership in the Shareholding Association.
Therefore, there may be a small number of employees who do not actually join theShareholding Association or who retire from the Shareholding Association, so the number of
eligible participants may be less than the assumed maximum number of shares.
For details, please refer to the “Notice on Disposition of Treasury Stock by Third-PartyAllotment” dated today.

This is the English translation of the document originally written in Japanese for non-Japanese convenience.
Although Japan Securities Finance intends to faithfully translate the Japanese written documents into Englishversion, the accuracy and correctness of translation are not guaranteed, so you are kindly encouraged to refer tothe original Japanese version of the document.