Securities Code：8609

OKASAN SECURITIES GROUP INC.

Medium-term
Business Plan
FY2023~2027※ This Medium-term Business Plan is originally made inJapanese and translated into English. The English text is forreference purposes. If there is any conflict or inconsistency
between these two texts, the Japanese text shall prevail.

March 24, 2023
OKASAN SECURITIES GROUP INC.

In formulating this Medium-term Business Plan
Since our founding in 1923, the Okasan Securities Group has refined its specialized investment and asset
management services, focusing on the securities business based on the management philosophy of"Customer-First.“
As we approach our 100th anniversary in April 2023, we have established a new medium-term businessplan for the coming five years from FY2023 to FY2027, aiming to establish a management foundation whichenables us to realize sustainable growth in the next 100 years. We remain grateful to our customers,
employees, shareholders, business partners, and local communities who have supported us to date.
We are committed to fulfilling our mission to empathize with our customers' lives, support them in building
up their assets for the future, and "connect" it to the next generation, and play a role as well to “connect”
our customers with our business partners including allied partners by using a wide range of resources ourgroup possesses, aiming to become a securities group deeply “connected” with diverse stakeholders.
We look forward to your continued support.

SHINSHIBA Hiroyuki
President
COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

2

Table ofContents

01 Basic Policies of the Mediumterm Business Plan
02 Growth Strategy
03
04
05

Reinforcement of Management
Control System
Sustainability Initiatives

Targets for Key Management Indicators

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

3

01
Basic Policies of the Mediumterm Business PlanCOPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

4

1 Summary of the previous Medium-term Business plan
(FY2020-FY2022)
Quantitative Targets

Basic Policies
Contents
1 Customer-oriented
Services
Thoroughly implementing the
Okasan-way of customer
orientation by taking acustomer perspective
approach with our services

2 Creation of Shared
Value
Creating new revenue streams
and improving cost efficiency
by turning the Group’s
resources into a platform

3 Digitalization Initiatives
Service innovation and theprovision of new value throughthe use of technology

Results

Item

TargetTrack Record

Reference

10.0%

6.0%
(FY2022)

2.4%(FY2020)

1.03 million
accounts(FY2022)0.8 million
accounts(FY2020)

6.5
trillion yen(FY2022)

4.7
trillion yen(FY2020)⚫ Instilled the concept of “CX Strategy” towards each employee to further foster
awareness in customer-oriented services. As a result, we have seen an upward trend in
net assets inflow provided by individual customers.

ROE⚫ Reduced store costs and created a close-knit community with our customers. This wasachieved by expanding satellite offices, which strengthened customer relations andbranch rationalization.

Numberofaccounts

1 million
accounts

Assetsundercustody

10.0
trillion yen⚫ “Satellite assets” continue to account for the majority of our customer assets undercustody. Attracting more "core assets” remains to be our issue.
⚫ We have increased the number of customers by approximately 30% over the course of
three years. Our operating bases expanded by business consolidation of Securities
Japan and through business transfers from other companies within the industry.
⚫ Through business integration between Okasan Securities and Okasan Online Securities,
we combined the strengths of face-to-face and online services, creating a structure to
flexibly respond to the increasingly diverse needs of our customers⚫ Okasan Asset Management became a joint venture with the SBI Group. The asset
management business was strengthened by promoting a growth strategy thattranscended the boundaries of the Group.

Number of accounts andassets under custody(trillion yen)(million accounts)

Assets under custody (left axis)

8.0

120

Number of accounts (right axis)
6.0

90

4.0

60

2.0

30

⚫ Promoting improvements in customer service through the introduction of smartphones
and tablet computers⚫ Establishing a remote working system that allows employees to work flexibly,
regardless of time or location⚫ Cooperating with external services has become easier with digitalization being further
established. This was achieved by replacing the core securities system from an inhouse operation to a system widely used in the industry.
⚫ Considering expanding into new markets that are expected to grow in the future, suchas crowdfunding and STO businesses

0.0

0

18/03

19/03

20/03

21/03

22/03

22/12
(Year/end of month)

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

52 Recognition of Business Environment and Direction ofMedium-term Business Plan
To establish a business base for sustainable growth, followings are required : strengthening consulting capabilities,
competitiveness, employee engagement, and digitalization

Future Business Environment

Current Business Environment(Assumptions)

External Environment

Political institutions⚫ Promoting “growth” and “distribution” throughthe New Form of Capitalism⚫ Government promotion of "savings to investment”⚫ Easing firewall regulations among banks and securities firms⚫ Pension System reform/Further relaxation of
DC membership requirements⚫ Further relaxation of various regulations⚫ Accelerated entry from other industries

Economic market⚫ Investment practices based on the SDGs
⚫ Demographics and inheritance moving funds fromrural to urban centers⚫ Inflation, rising interest rates, and continued yen
depreciation⚫ Shift in personal investors’ attitude in response
to “the 20-million-yen issue”⚫ Expected Monetary Policy shift by the Bank of Japan⚫ Expansion of overseas investment

Community⚫ Declining population, aging population with low birthrate⚫ Embracing the 100-year life and diversification of needs⚫ The spread of Financial Education

Technology⚫ Sophisticated data analysis and investment methods such as AI⚫ Establishment of automation technologies, such as RPA⚫ Development and use of FinTech

Domestic⚫ Change in demographic structure (digital natives/seniors)⚫ Intensifying competition in human resources⚫ Improve financial literacy of the public andbroaden investor bases⚫ Widespread use of investment products using newtechnologies, such as NFT⚫ Automation of investment behavior through advanced AI⚫ Generalization of Virtual Stores via Metaverse

Within the Securities Industry

Acceleration on promoting customer-oriented services
Intensifying competition to reduce commission rates
Popularization of Accumulated Investments
Promoting differentiation through the use ofdigital technology⚫ Outflow of human resources to IFA⚫
⚫
⚫
⚫

Overseas⚫ Expansion of asset management type businessTransition/mainstreaming to asset management type business
Further promotion of NISA and iDeCo
IFA and financial services intermediaries to become the norm
The spread of digital transformation, widening gap
between companies⚫ Mobility of human resources, diversification of work styles⚫
⚫
⚫
⚫

⚫ Popularization of securities services for high-net-worth
individuals through the advancement of digital technology

Direction of theMedium-term
Business Plan
Establishment of
Business BaseStrengthen Consulting
Capabilities to Meet
Diverse Customer Needs
Strengthen
Competitiveness via
Strategic Investments
and Cooperations with
External Organizations
Strengthen Brand Value
and
Employee Engagement
Strengthen Businessthrough the Use of
Digital Technology

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

6

3 Basic Policies of the Medium-term Business Plan
PurposeContributing to "customers' lives" as financial professionals

VisionThe best partner that continues to meet the needs of each andevery customer with sincerity

Basic Policies of the Medium -term Business Plan
Goal

GrowthStrategy

Transform the business model to establish a management foundation whichenables us to realize sustainable growth in the next 100 years.

1

One to One Marketing
Enhancement

Provide consulting services that meetthe increasingly diverse needs ofindividual customers

2

Platform
Advancement

Rather than sticking to a self-sufficientapproach, we will enhance the added
value of the platform by pursuingsynergies through collaboration withexternal partners

3

Corporate Branding
Evolution

By fostering a culture where a diverse groupof people can thrive in, we will enhance ourcorporate value and become a corporategroup that is trusted by all stakeholders

Promote "digitalization" in all areas to enhance the feasibility of growth strategies
COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

7

4 Business Model Transformation
Business Portfolio Optimization

Cost Optimization

Expansion of stock-type business

Enhancing cooperation outside the Group⚫ We aim to establish a business model that willcontinue to grow steadily alongside ourcustomers by incorporating “core assets” *1through consulting from a medium- to long-term
perspective, while also expanding earnings inline with the balance of assets under custody⚫ We aim to improve and strengthen ourmanagement structure by promoting
fundamental structural reform; strengthening
cooperations with organizations within andbeyond the industry, rather than focusing on aself-sufficient approach

Development of flow-based business

Pursuit of return on investment⚫ To meet our customers’ needs more accurately
and promptly with regard to “satellite assets,” *2
we will continue to further refine our service
capabilities by leveraging our market strengths
which we have cultivated over the past 100
years⚫ We aim to maximize return on investment by
thoroughly selecting and concentrating businessresources*1. core assets: assets to be managed stably over the medium- to long- term *2. satellite assets: assets to be actively managed over the short term
COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

8

02
Growth Strategy
One to One Marketing Enhancement - "Connect" customers' assets

Platform Advancement - "Connect" Businesses
Corporate Branding Evolution - "Connect" with Stakeholders

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

9

One to One Marketing Enhancement (overview)
Achieving optimal services that match the explicit and implicit needsof each customer
Customers

Providing the best service
at the right time.

OnlineAccumulation of customer data
Attribute Data
Transaction Data
Communication Data

Understanding customer information and needs
by strengthening relationships

Face-to-Face

Comprehensive support from specialist teams
at the headquarters
Database management, analysis and service planning

Customer Data
Attribute

Communication

Transaction

Products & Solutions

call

Expansion of product lineupand solution menu
Financial
Products

Inheritance
SupportInvestment
Information

M&A, BusinessSuccession

Real Estate

SecuritiesBacked Loan

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

10Respond to Diversifying Customer Needs
Diverse Customer Needs

Direct approach to customers as needed

Headquarters’Specialist Teams

Face-to-Face

Asset building froma medium- to long-term perspective
Inheritance andbusiness succession support
Suitable financial product for oneself
Confusion and unfamiliarity inasset management

Diversification of fee structures

Investment advice
capturing market trends

Portfolio proposal,
goal-based approach
Provide informationand solutions
Diverse product lineup
Provide easy-tounderstand explanations
and information
Consider commission
structures linked to thebalance of assets undercustody

Field Sales
Like a “Primary Care Physician”• Clarification on the role of sales
representative (Strengthen organizationoriented selling)• Introduction of a long-term sales
representative system• Store strategy enabling the company
more accessible to customers• Close-knit network with headquarters’
specialist teams

Cooperation
Non-Face-to-Face

Inside Sales/
Customer Support• Inbound and outbound operations

Too busy to take timeto get it all together

Provide information andservices via email and apps

I want to trade at my own pace

Provide an online
trading environment

Providing prompt support for optimal services

Investment advice

Like a “Medical Specialist"• Expansion of product lineup• Professional inheritance andgift support• Optimal business succession
planning• Creation of model portfolios• Advanced market
information analysis

Cooperation

DigitalUtilization

AI• Expansion of digital tools
such as life plan simulations
and portfolio diagnostics• Daily check-ins on customer
information; notification
alerts to sales
representative or customers
when needed• Providing high-performance
trading tools

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

11

Integration of face-to-face and non-face-to-face services
Customers are able to choose courses that best fit their life stages and situations.
We build relationships with our customers across generations-parents, children, andgrandchildren-by providing a variety of channels.

Consulting Course

Direct Course

Securities Companies by Region

Okasan Online Securities Company

Face-toFace

Call

OMNI-NET

Advanced consulting services
tailored to each customer

Customers can choose what best fit
their life stages and situations

Trading services that utilize
sophisticated trading tools

Unify and expand product lineup
Domestic
stocksForeignstocks

Bonds

Investment
trustsFutures &Options

FX / CFD

Improve customer convenience
COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

12

Expand "stock-based" earnings by capturing "core assets”
By promoting “One-to-One Marketing,” we aim to increase the balance of assets under custody,
including “core assets” through comprehensive consulting services that consider our customers’
overall assets: which in turn would increase “stock-based” revenue, generated from fees linked
to the balance of assets under custody.
Comprehensive consulting
services that encompasses
the entire asset portfolio⚫ Other than selling individual
products, we provide
comprehensive consulting services
for all assets, including inheritanceand business succession⚫ Expanding our product lineup andsolution menu to accurately meetthe needs of a diverse range ofcustomers⚫ Introducing digital tools to support
high-value-added consulting

Acquiring "core assets"

Expansion of “stockbased" revenue⚫ We will become the primary financial
institution for our customers, offering
comprehensive consulting services
and expand the balance of assets
under custody, including “coreassets.” Resulting in an increase in
Share of Wallet for each customer.

⚫ We are expanding 'stock-based'
revenue generated from fees linked
to the balance of assets undercustody, in addition to our existing'flow-based' revenue, which isprimarily derived from 'satellite
assets.’⚫ We build business relationships
across generations, connecting
parents, children, and grandchildren,by providing a range of services
tailored to different life stages.

⚫ We are promoting the expansion of
products for “core assets” andconsidering diversifying ourcommission structure.

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

13

Strengthen wholesale business
Strengthen wholesale business based on enhanced inter-organizational collaboration

Investment Banking as a Growth Business
Expand underwriting business⚫ Enhance proposition skills and cultivate relationships
with issuers such as listed companies and companies
expected to be listed

Further expansion of brokerage services
Strengthen product capabilities to meetinvestment needs⚫ Expanding product lineup by promoting cooperation fromexternal organizations⚫ We aim to become the issuer's first choice by
maintaining a constant market share in the secondary
market⚫ Strengthening product supply capabilities by expanding
underwriting business

Evolve solution business

Disseminating useful information⚫ We are evolving our solution business to solve ourcustomers' problems by strengthening our consulting
capabilities in areas such as M&A advisory, businessmatching, and business succession⚫ Expanding distinctive research, including macro analysis,
strategy analysis, ESG research, and REITs⚫ Holding meetings with strategists, economists, andanalysts in a timely manner, tailored to clients' needs
COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

14

02
Growth Strategy
One to One Marketing Enhancement - "Connect" customers' assets

Platform Advancement - "Connect" Businesses
Corporate Branding Evolution - "Connect" with Stakeholders

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

15

Platform Advancement (overview)
Accelerating the expansion of 'Securities as a Service' to both within andoutside of the Group by strengthening securities business functions
Customers

Providing securities services through a diverse range of sales channels by promoting
alliances, M&A, and other strategies
Okasan Securities(In-person, Online)

Subsidiaries infinancial services

Related securities
companies

IFA

Regional financial
institutions nationwide

Strengthening “Quantity“Strengthening "Quality"(Sales Channels)(Securities Business Functions)

Providing services toa broader range ofcustomers through adiverse array of sales
channels.
external
Partner

external
Partner

Financial
Products
SystemContact Center
Digital Tools

external
Partner

Securities affairs

OkasanSecurities
Group
Enhancing the securities
business functions by utilizing
the resources and know-how
of external partners

Investment
Information
Inheritance
supportEffectively utilizing
resources from othercompanies rather thanfixating on being selfsufficient.

external
Partner

M&A andBusiness Succession
ComplianceInduction course

external
Partner
external
Partner

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

16Strengthen “Quantity" and “Quality”
Provide advanced services to a wider array of customers by strengthening
both “Quantity" and “Quality
Strengthening “Quantity"(Sales Channels)

Strengthening "Quality"(Securities Business Functions)

Building a unique securities network byleveraging the Group’s strength in "diversity"

Creating highly competitive “added value” in theintensifying zero-commission competition

Expanding and growing our channels

Sophistication of services⚫ Increased number of high-level sales representatives⚫ Through collaboration with expert external companies,
we will expand our product lineup and solution menu toprovide more advanced services⚫ Expanding to new locations by opening satellite offices⚫ Implementing a more flexible and distinctive sales
strategy by promoting an in-house company system⚫ Utilization of M&A and more

Cooperating with external channels⚫ Expanding partnerships with regional financial
institutions and other organizations, utilizing ourstrength as an independent company⚫ Strengthen IFA business, which is expected to expandin the future⚫ Promoting strategies for related securities companies

Maximize return on investment throughselection and concentration⚫ We aim to reduce costs in fields where differentiation isharder; utilizing other resources outside the company,
while maximizing return investments by selecting andconcentrating on our own resources in “strategic areas”
such as human resources and funds

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

17

02
Growth Strategy
One to One Marketing Enhancement - "Connect" customers' assets

Platform Advancement - "Connect" Businesses
Corporate Branding Evolution - "Connect" with Stakeholders

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

18

Evolution of Corporate Branding (overview)
Enhancing corporate value, achieved by a synergistic effect between "innerbranding" and "outer branding"Inner Branding

Outer Branding

Increasing Employee Engagement

Improving
Corporate Image and Recognition

Okasan Securities Group Employees⚫ Aligning employee and company goals⚫ Attracting and retaining top talent⚫ Improving Productivity⚫ Elevating ethical standards

Enhancing
Corporate
Value

Customers, Shareholders,
Investors, Business Partners,
Local Communities, etc,

⚫ Becoming a company preferred by
Stakeholders as financial professionals⚫ Coexistence and co-prosperity withlocal communities⚫ Improving business performance andstock price

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

19

Strengthening Inner Branding
To be a company where employees work with greater “pride,” we strive under the principlethat “a company must first be chosen by its employees to be chosen by the customers.”
Creating a positive working
environment

Realization of personal growth⚫ Realization of career paths according to individual aptitudes andaspirations⚫ Promoting professional growth by providing diverse educational
opportunities⚫ Providing mechanisms to support growth and providing a place
to utilize enhanced capabilities⚫ Enabling flexible working styles that matches the individual’s
preferences and life stages, and offer the choosing of roles andresponsibilities⚫ Providing a flexible working environment via digital technology⚫ Visualizing engagement and focusing on management toimplement improvement.

Pay for Job, Pay for Performance⚫ Shifting to a compensation system that allows for flexible choices
in work styles and roles⚫ Providing a system that allows employees of all ages to receive
compensation based on their responsibilities and achievements⚫ Achieving high levels of compensation

Sharing the company's future vision⚫ Have a deepened understanding of management policies andcommunicate to improve autonomy✓

Strengthening information dissemination by top management✓

Promoting dialogue between management and employees✓

Utilizing stock-based compensation and other methods tofoster a sense of participation in management

Revamping the human resources management system to achieve the four elements
COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

20

Strengthening Outer Branding
Enhance the brand image and attract "Okasan fans"

Customers

OkasanSecurities
Group

Shareholders andInvestors
Business Partners
Community &Environment
Others⚫ Further CX improvement (sustained improvementof customer satisfaction)⚫ Providing services with greater added value⚫ Promoting constructive dialogue⚫ Enhancing information disclosure⚫ Balanced investment in growth and shareholder
returns⚫ Creating new business opportunities
through synergy with leveraging mutual
strengths⚫ Achieving coexistence and co-prosperity withlocal communities through initiatives toimprove social and environmental problems⚫ Enhancing PR activities⚫ Updating corporate websites andlaunching effective TV commercials
COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

21

03
Reinforcement ofManagement Control System

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

22

Reinforcement of Management Control System
Enhancing Corporate Governance⚫ Reinforcing compliance structure⚫ Strengthening risk management⚫ Deepening commitment to fiduciary duty"Centralization" of Corporate
Functions and “Decentralization" ofProfit-making Functions⚫ Promoting an in-house company system tofurther promote customer-oriented sales⚫ Centralization of human resources andfinancial management

Selection and Concentration,
Appropriate Cost Control⚫ Reallocating management resources from
non-strategic to strategic areas⚫ Enhancing and strengthening themanagement structure through cost
structure optimization

Developing Core Personnel⚫ Establishing a talent management system⚫ Developing a succession plan
(Cross-Organizational Development)

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

23

“Centralization" and "Decentralization"
Centralization of corporate functions
Promote the centralization and standardization(consolidation) of corporate functions to enhance
management efficiency, improve quality, and strengthen
monitoring capabilities

Decentralization of Profit Functions*
Delegate (decentralize) authority to each company tofacilitate highly agile sales strategies that leverage thecharacteristics of each area and business domain.
* Reforms are at the core subsidiary Okasan Securities Co.

Okasan Securities Group
CSO

CLO
CDO

CHRO
CFO

CRO

strengthen monitoring
capabilities
Okasan Securities
Co., ltd.

Group
Companies

Okasan Securities
Co., ltd.

CIO

...

In-housecompany

In-housecompany...

Shared Services
Administrativetask

Personnel
affairs

SystemProduct
information

Digital tools

Securities
affairs⚫ By leveraging advanced shared services, we enhance the service
levels of corporate functions and streamline operations⚫ Enhancing monitoring capabilities to ensure that all groupcompanies are aligned and moving in the same direction

BranchBranchBranchBranch⚫ Each in-house company has the authority to formulate andexecute sales policies, assign personnel, and more
⚫ Head office oversees and manages each in-house company⚫ Considering making the Group‘s securities companies into inhouse companies.
COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

24

04
Sustainability Initiatives

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

25

Sustainability Initiatives
Establish materiality (key issues) to contribute to the sustainable growth of society and develop as one

Materiality of the Grouptheme

Customers’
futurepolicyFor a long andprosperous future of ourcustomers
We provide optimal financial
services to each and every
customer, including theworking-age and youth

For the realization of asustainable society

Socialconstruction

Through our businessactivities, we work to addresssocial issues including climatechange and minimize
environmental impact, while
contributing to local
communities

For Service
Improvement throughInnovation

Innovation

By promoting digital
innovation through theutilization of technology andAI, we will deliver information
tailored to each customer’s
needs and provide attentive
servicekey issues

major initiatives andrelated items

contribution to
the SDGs

theme⚫ Asset formation,
investment andmanagement support inan era of declining
birthrates and longevity⚫ Enhancing Customer
Experience Value =CustomerExperience (CX)

For creating a workplace
where employees thrive

Personnel⚫ Provision of information
on financial investments⚫ Underwriting and sellingof Sustainable Bonds⚫ Management and sellingof ESG-related funds⚫ Dissemination of
information onsustainable investment

Advanced knowledge,
expertise, and ethics areindispensable as professionals
providing high added value tocustomers.
We will further promote thedevelopment of humanresources, which is ourgreatest management
resource, and improve thework environment.

major initiatives andrelated items

contribution to
the SDGs⚫ Cultivate employees toenhance customer
experience value =customer experience(CX)⚫ Diversity and inclusion(Empowering diverse
talent )⚫ Improve employee
experience value =employee experience(EX)
Best company worth
working for

For financial soundness
and improving corporate
value

Financialbasis⚫ Improving customer
service and convenience⚫ Improving access tofinancial services

policyGovernance

We maintain a strong
financial base as thefoundation for ourdevelopment and strive toimprove corporate value overthe medium- to long-term.

⚫ Sound Financial BaseFor stronger governance⚫ Corporate governance

We have established a system
to ensure proper corporate
governance and businessexecution to control various
risks in management.

⚫ Risk management⚫ Improve ROE⚫ FD, compliance⚫ Strengthen systeminfrastructure

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

26

Initiatives that contribute to solving social issues
The securities business itself is capable of contributing to the sustainability of society, which isdone by evaluating and financially supporting businesses in the market that strive to solvingsocial issues.
Combined with our own commitments, we aim to solving social issues by promoting the usageof a different scope through the securities business.
Our own Commitments
Environmental Initiatives
Reduction of greenhouse gas (GHG)
emissions⚫ Further GHG reduction by substituting with renewableenergy to power electricity

Enhancement and sophistication of
information disclosure⚫ Proactively disclose and inform climate change impacts
and more

Diversity Promotion

Institutional and environmental
development⚫ Provide diverse working styles and growth opportunities
according to life events and circumstances

Culture building⚫ Creating a corporate culture in which each employee candemonstrate one’s strengths and "uniqueness”

Initiatives through the Securities BusinessContributing to solving social issues
through finance
Underwriting of SDGs bonds⚫ By underwriting SDGs bonds issued by internationalorganizations and local governments, we aim toaddress social issues such as poverty eradication, theenvironment, and reconstruction in conflict zones.
⚫ Contribute to the expansion of the SDGs bond market
by conducting investor and issuer engagement

Expansion of ESG funds offerings⚫ Establish, manage and sell local support funds⚫ Establish and expand sales of funds that contribute tosolving social issues⚫ Donate through trust fees

Promoting Financial Education⚫ Contribute to the development of capital markets byoffering “financial education-related programs,” andsupporting the improvement of financial literacy,
including that of future generations
COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

27

05
Targets for Key Management
Indicators

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

28

Targets for Key Management Indicators
Stakeholder

Item

Employee

Business
Partner

Shareholder(Reference) Current status¥10.0 Trillion¥6.5 trillion(As of December
2022)¥3.0 trillion¥1.7 trillion(As of December
2022)

Customer satisfaction
indicator*1

7.0 pt6.1 ptEmployee engagement*1

Sustainable improvement of
the score―(Measurement
started in 2023)

2,000

1,497

(As of December
2022)

Number of companies utilizing
the platform

130

52

(As of February
2023)

Number of contracted IFA
corporation

100

39

(As of February
2023)

Number of companies
utilizing the system

30

13(As of February
2023)

ROE(Return on Equity)

8.0 %

6.0 %

(FY2022 March)

Total dividend payout ratio

50.0%

29.5%

(FY2022 March)

Cost coverage ratio*2

30.0 %

15.5%(As of December
2022)

Assets under custody

CustomerTarget for FY2028 March

Investment trust assets undercustody[Desire to continue working for thecompany]

Number of salesperson*1(Mar 2022 survey)*1. Data of Okasan Securities(core securities company)on standalone basis*2. Ratio of “recurring fee revenue/SG&A” in Okasan Securities Marketing Management Division
COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

29

Shareholder Return Policies
We have established new policies for the introduction of the total payout ratio
and an ongoing share repurchases program, in addition to the existing basic
policy of maintaining and continuing stable dividends while considering
company performance

Introduction of the total payout ratio

Ongoing share repurchases

To achieve a balance between growth and returns
and to improve capital efficiency, we have set the＊total payout ratio at 50% or more as an index
for shareholder return.

Over the course of the Medium-term
Business Plan, we will conduct yearly share
repurchases of at least one billion yen until
the PBR exceeds 1.0*Total dividend payout ratio= (Total dividends paid + Share repurchase amount) / Net income attributable to owners of the parent

70

~
~

360%

Ongoing share
repurchases ofat least one
billion yen

~
~

60

~

Share repurchase amount(Left axis)
Total dividend paid(Left axis)
Total payout ratio(Right axis)(Billion yen)

140%
120%

50

100%

40

80%

30

60%

20

40%

10

20%

0

0%
12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3

24/3

25/3

26/3

27/3

28/3

(FY)

COPYRIGHT © OKASAN SECURITIES GROUP INC. ALL RIGHTS RESERVED.

30