February 6, 2023
To whom it may concern
Company: Japan Securities Finance Co., Ltd.
Representative Executive Officer & President: Shigeki Kushida(Code No. 8511, TSE Prime)
Contact: Hiroshi Sagawa, General Manager, Corporate Planning Dept.
(E-mail :info@jsf.co.jp)

Announcement of Formulation of Medium-term Management Plan

Japan Securities Finance Co., Ltd. (hereinafter “JSF”) has formulated its Seventh
Medium-term Management Plan (FY2023-FY2025), which covers the three-year period
from FY2023 to FY2025, as shown in the attached document.
JSF is pursuing initiatives to strengthen the foundation of our margin loan business andto diversify its revenue sources, while also buttressing the foundation of ourcompetitiveness through the construction of a more efficient operational structure under
the Sixth Medium-term Management Plan (formulated in March 2020). From theperspective of ensuring further commitment and transparency to achieve sustainablegrowth and to enhance our enterprise value over the medium and long term based on
the advanced governance system as a Company with Nomination Committee, etc., JSF’sMedium-term Management Policy was formulated in November 2021. We have also
been pursuing management reform initiatives by mobilizing all the Group's resources toachieve our medium-term management goals.
As a result of these initiatives, for the current fiscal year 2022, ROE is estimated to be
4.27% based on the current estimated figures, and JSF is making steady progress
toward achieving the interim target of 4% ROE set in the Medium-term ManagementPolicy".
The recently formulated Seventh Medium-term Management Plan outlines JSF'smanagement policies for the next three years and the strategies and measures that will
embody these policies in order to achieve the medium-term management goal of 5%
ROE by FY2025. In addition to our efforts to deepen and accelerate the management
reform initiatives JSF has been pursuing, we will continue to enhance our organizationaltransformation and corporate vitality capabilities by ensuring diversity and developing
our human resource base. This will allow us to respond in an agile and flexible manner
to changes in the business environment.
1

JSF, under its corporate philosophy and the Seventh Medium-term Management Plan,
will strive to be a distinctive and unique company that is agile and flexible enough tomaintain strong financial soundness and achieves sustainable growth and enhances its
enterprise value over the medium and longer term, as a securities finance company thatsupports the infrastructure function of the securities and financial markets.
We hope that our stakeholders will understand the direction of our management policy,
and continue to lend their support and cooperation to our endeavors.
End of Document

2

Attachment

Seventh Medium-term Management Plan (FY2023-FY2025)

１．Corporate Philosophy
As an institution specializing in securities finance, JSF has a mission to contribute to thedevelopment of the securities and financial market by proactively meeting the diverse
needs of the securities and financial sectors and to enhance the long-term interests ofusers, while always maintaining a keen awareness of its public role.

２．Vision for JSF in the Future
JSF, under its corporate philosophy, will strive to be a distinctive and unique company that isagile and flexible enough to maintain strong financial soundness and achieves sustainablegrowth and enhances its enterprise value over the medium and longer term, as a securities
finance company that supports the infrastructure function of the securities and financial
markets.

３． Management Principles(1) To practice sound business management by thoroughly implementing compliance,
corporate governance, and risk management under a solid governance structure
and thereby establish solid credibility, while always maintaining a keen awarenessof our social responsibilities as a securities finance company.
(2) To enhance enterprise value while maintaining solid equity capital in order toensure stability in management and the financial health required of a securities
finance company that supports the infrastructure function of the securities andfinancial market, and to ensure profits are returned to shareholders.
(3) To further enhance JSF’s core margin loan business while also striving tostrengthen and expand the finance- and securities-related services provided by JSF
and Group companies and to further grow and solidify our business base.
(4) To build a quick and efficient business management structure and strengthen ourhuman resource base in order to address changes in the business environment in aquick and flexible manner, and to improve our corporate vitality and organizationaltransformation capabilities.

４．Management Goals
Aim to achieve consolidated recurring income of 10 billion yen and ROE of 5% byFY2025.

1５．Strategies(1) Enhance the margin loan business as part of the securities market infrastructure
To appropriately respond to changes in the environment surrounding the stock market andensure the stable operation and improve the convenience of the margin loan business. Also,
by accurately grasping the trading requirements of market participants, we will review
measures to promote the use of loans for margin transactions, strengthen the disseminationof information related to standardized margin transactions and loans for margin transactions,and strive to strengthen the foundation of the margin loan business.
(2) Expand and strengthen securities financing business
JSF will effectively leverage its accumulated expertise in funds and securities transactions
to proactively respond to diverse transactions with domestic and foreign financial
instruments business operators, etc., and strengthen and expand its securities financing
business by expanding the range of clients, target currencies and securities, etc., toincrease revenue opportunities.
(3) Reinforce consolidated management of the GroupPursue greater collaboration among Group companies in the areas of sales, risk
management, and operational management, and otherwise strengthen the Group'sconsolidated management.
(4) Secure stable revenues and expand fund-raising methods through securities investment
Secure stable revenues from securities investments by reviewing the portfolio in an agile
manner response to changes in the external environment under appropriate risk control.
We will also work to expand stable funding methods, including foreign currency, in order tomeet the diverse requirements of our clients.
(5) Pursue the development of new business
Leveraging its characteristics as a securities finance company, JSF will work to develop
and materialize new business operations from a long-term perspective in cooperation withrelated parties and group companies both inside and outside the Company.
(6) Strengthen our operational management system
JSF once again confirms that compliance is positioned as a precondition for management
in order to proactively respond to the social demands placed on the company and realize
our corporate philosophy.
JSF will ensure the effectiveness of internal audits and further enhance risk management
in response to the diversification and complexity of risks associated with financial
operations to establish unwavering public trust.

2(7) Buttress the foundation of our competitiveness through efficient operational efficiency
As transaction volume increases and operations become more complex, the company will
strive to build an efficient operational structure by reviewing business processes andproactively utilizing digital technology to buttress the foundation of our competitiveness.
(8) Strengthen human resource development and improve engagement
Through our efforts to strengthen human resource development and rebuild our humanresource portfolio, centered on ensuring diversity and strengthening professionalism andindependence, as well as improving employee engagement, JSF will improve corporate
vitality and organizational transformation.
(9) Promote sustainability
In addition to striving to further strengthen our business continuity structure so that we canstably fulfill our infrastructure function of the securities and financial market, JSF will alsosteadily address important issues related to sustainability, such as addressing climatechange and environmental preservation.

37 th Medium-term Management Policy; Overview
ManagementGoals

Aim to achieve consolidated recurring income of
10 billion yen and ROE of 5% by FY2025.
Enhance the margin loan businessas part of the securities market
infrastructure

Strategies

Expand and strengthen
securities financing business
Secure stable revenues andexpand fund-raising methods
through securities investment

Reinforce consolidated
management of the Group

Maintain strong
financial soundness
Achieve sustainablegrowth and medium tolong-term enhancementof corporate value

Strengthen our operational
management system
Strengthen human resource
development and improveengagement

Copyright Japan Securities Finance Co., LTD. All Rights Reserved

Pursue the development ofnew business
Buttress the foundation of ourcompetitiveness through efficient
operational efficiency

Promote sustainability～ All For Securities Market ～