Credit Saison’s Global Business
Future growth of Credit Saison India
June 2024

Our
GlobalBusiness
Our Global Business| Confidential |2

Vision of our Global Business
Global Business Theme
Make the world more prosperous and sustainable throughfinancial inclusion

Create positive impact
through our businessin each country

Establish a global lending business,and have it become ourthird earnings pillar✓✓

Horizontal expansion of Indian model based on
Fintech ecosystem
Build a unique economic zone through allianceswith local partners, and realize localized value
creation| Confidential |✓✓Unlock MSMEs’ growth potential and economic
opportunities
Improve the livelihoods of historicallyunderserved individuals and households
3Our footprint✓ Expansion into seven countries with both our lending and investment businesses■India> Promote enhancement of direct lending in
addition to lending in partnership with Fintech
and accelerate business expansion■Thailand> Provide B2B finance for supply chains■Singapore■Brazil and Mexico> Develop an investment and loan businessaligned with local conditions based on the
Indian business model> Our international headquarters of
Credit Saison, charting the strategy ofthe global business and providing
best-in-class corporate capabilities tosupport market expansion and growth■Vietnam> Develop the installment credit and loanbusiness and credit card business forindividuals■Indonesia■CVC> Develop the lending business for SMEs
and individuals through collaboration with
P2P lenders> Take on the challenge of new areas
such as Web3 while continuing to invest in
the Fintech area, taking the investment
environment into consideration| Confidential |4Key concept of our global business✓ Promote two core businesses in partnership with fintech companies

Innovation[FIN]TECH[FIN]TECH

Inclusion| Confidential |55

Mid-term biz plan
✓ Our aim is for the global business to become our third earnings pillar(bn yen)

100
1.4
4

1
4.3
16.4
50

1.2
4

14

13

12.5

6.8

2.4
19.2

1.6
4.5

Entertainment
Lease

7.5

Real estate related

20

Global28.9

Payment

37.5

Finance

24.3

20.5

28.2

31.5

33.8

FY23

FY24

FY25

0
*Includes intersegment transactions| Confidential |FY26
6

Global lending strategy✓ Implement onshore/offshore strategies in line with market size while building common policies,
processes and structures globally
→ P8

2step
strategy

Alliance
strategyMarket
Big market=ONSHORE

CommonPlatform

Not big market=OFFSHORE

Risk Management
Portfolio Management
ESG/Impact Management| Confidential |7

Global lending strategy -2✓ Aim to ensure development fitted to each country's market by combining 2 step strategy built in
India with Alliance strategy in onshore lending

2 step strategy

Alliance strategy

Difficulty of entry

DirectBeyondthat

lending

Fintechs>Partnership lending

Partnershiplending

Direct lending to
end customers

Scalability

Wholesalelending

Scale up throughco-lending with fintechs

NBFCs>Wholesalelending

BtoBtoC
Securitization StructureEnter the market by lending
to local NBFCs and fintechs>Senior lending| Confidential |Service provider
for consumer>Embedded financeagents
BtoC Sales>Branch-led

Bank>Liquidation ofreceivables

8Governance Structure✓ Expansion of our corporate functions at our IHQ, acquiring global talents with strong experiences

Credit Saison
Group managementagreement

Applications/reports

Approval/instructions

End of Mar’23

22

EEs

End of Mar’24

37

EEs

Finance/Accounting

Corp Development

Branding & Comms

Legal/Compliance

Risk management

ImpactPeople & Culture

Internal Audit

Group managementagreement

Applications/reports| Confidential |Approval/instructions

9

Saison Global Summit 2024
✓ Annual gathering of key members from each companies for cross-sectional engagement
and networking| Confidential |Growth Strategy ofCredit Saison India| Confidential |11

Overview
Kisetsu Saison Finance (India) Pvt. Ltd.
“Credit Saison India”※As of end of Mar ’24••

Established
Shareholder•••

Capital
Total Asset
No. of employee

June 2018
Credit Saison
62.1%
Saison International 21.6%
Mizuho Bank*
16.2%
INR 17 bn
INR 129 bn
900+*Includes investment by subsidiaries of Mizuho Bank

■Milestones *Trends in Consolidated Contribution Profit (bn yen)

2.96
1.79

Est

FY18

Acquired NBFC license
Commenced operation

FY19

FY20

Becameprofitable in asingle year

Partner expansion due tothe success of the selfdeveloped LMS| Confidential |Launched direct
lending
Acquired AAA fromCRISILOver 300 employees
and 20 branches

Acquired AAA
rating from Care

FY21

AUM reachednearly 100 bn yen

FY22

Mizuho Bank toinvest INR 12 bn

AUM reached over
200 bn yen
Issued first NCD
and CPOver 900 employees
and 45 branches

FY23

12

Snapshot of Financial results of 2023
(Currency is in INR)

117.05bn

Loan Book +97% YoYAmong India’s fastest
growing NBFCs

35.03bn

91.50bn

2.61x

Net Worth +99% YoYConsistent equity infusion by
CS Japan and Mizuho Fin.
Group

Borrowing +86% YoYWorking with 30+ global &local banks with access to
low cost of funds

Debt-Equity
Moderately leveraged with adiversification focus on liability
base to include NCDs and CPs

Multi product, Multi
Vertical focused NBFC

Poised for growth withstrong parentage &strategic investor

Robust Lender BaseModerate leverage

27.97%

187.16bn

0.83% | 0.48%~1.3mnCARA

Building a resilient businesswith strong capitalization
metrics
Adequate equity support

Disbursement +80% YoYEver increasing
disbursement with focus
on direct to market

GNPA* -0.19% | NNPA* -0.15%
Strong underwriting models
beating industry benchmarks

Active Customers +155%
Building a granular retail bookwith 1.3 mn+ active customers

Testament to superior
underwriting models

Winning retail lending
strategy

Strong origination
capabilities with a focus on
Direct to Market| Confidential |*NPA numbers are compared QoQ*GNPA represents the ratio of Gross Non-Performing Assets by total Asset
Under Management for a lender in a financial year13

4 types of business model✔ Offer 4 verticals in BtoBtoC and BtoC model

Vertical

Wholesale lending

Partnership lending

Embedded financeBranch-led

Overview

Loans to local
NBFCs

Loans through techenabled alliances with
fintechs

Loans through techenabled alliances with
non-financial
companies

Loans utilizing branches
and sales agents

Target customer

Local NBFCs

Consumer/MSMEs
originated by fintechs

Consumer

MSMEs

Average interest rate

12%

Varies based on type ofPartnerUpper 15%

Upper 15%

Average ticket size

INR 300mn

Varies depending on
Partner

INR 150K

Varies depending on
Loan ProductAverage loan tenure

24 months

3–36 months

18–24 months

30 months

60+

15+

9

170+

No. of partners(incl. pasttransactions)| Confidential |14

Step in business development✔ Expand our business step by step by promoting multi-product, multi-vertical strategy
FY 2019

Product
Milestones

FY 2020

1

Launched Wholesale
Vertical2

Launched
Partnerships Vertical

FY 2021

FY 2022

Direct consumer play

Direct MSME play3

FY 2023

4

FY 2024

Launched
Embedded FinanceLaunched BranchBusiness

BtoBtoC

Other Key
Milestones

Sep-19:Received NBFC
License

BtoC (=Direct Lending)Mar-21:

Mar-22:Mar-23:CRISIL assigns
AA+ rating

CARE assigns
AAA rating

CRISIL assigns
AAA rating| Confidential |15

AUM so far✔ Strong growth in FY23, almost double year-on-year
3000
300
Wholesale lending

Partnership lending

Embedded financeBranch-led

Approx.

210bn yen

2000
200

19％
x

1000
100

9％

2
52％

20％
0 0

# Branches

FY19

FY20

FY21

FY22

FY23

-

-

1

20

45

| Confidential |16

Step 1 – BtoBtoC (Wholesale & Partnership lending)Partnership lending

Wholesale lending
Borrowers

Borrowers

Lender (Originator / NBFC)

Micro
Finance

AssetsLiabilities
AssetsEnterprise
Finance

Wholesaleloans

Consumer

Loan
receivables

VehicleFinanceSecured
MSMEs

EquityProvide financing

Debt
Wholesalereceivables

AssetsLoan
receivables

EquityEquityCredit Saison+ Mizuho

MSMEs

Received collateral basedon loan receivables

Liabilities
Debt

Micro
Finance

Credit Saison+ Mizuho

Capital“On-lending”

Consumer

Liabilities

NBFC(Fintech)

Provide First Loss Default Guarantee(i.e. cash collateral / credit
enhancement) to CS India

Perform everything from the origination, joint
underwriting, operations and collection except lending

Wholesale lending involves providing balance sheet funding to other
NBFCs. As the wholesale lender, we can limit the use of wholesaleloans exclusively for on-lending purpose

Partnership lending involves providing loans directly to borrowers incollaboration with NBFCs via a tech led integration. In the event ofdelinquencies, our losses are covered by the first-loss default guarantee.
Therefore, this co-lending arrangement resembles a protected partnership➢ Continued implementation to ensurestable profits and profitability➢ Continued implementation as
market knowledge/insights| Confidential |17

Step 2 – BtoC (Embedded & Branch-led)
Branch-led (for MSMEs)

Embedded finance (for consumers)o 45 branches across Indiao 170+ Direct Selling Agents (“DSAs”)

Jammu andKashmir

PunjabPartners

Borrowers

Himachal
PradeshHaryana

Uttaranchal

Headquarters(e.g. Teleco)

Loanapplications

BranchAPI

Uttar
PradeshRajasthan✓ Credit Underwriting

Gujarat

MadhyaPradesh✓ Loan Servicing✓ Collections

Jharkhand

Meghalaya
ManipurWest
BengalDigitalPhysical outreach

TripuraMizoramAndhraPradeshGoa
Karnataka

Embedded finance entails offering loans directly to consumers (B2C), often
facilitated through Partners serving as distribution channels.
This requires full-stack capabilities including onboarding, risk assessment,
operations and collection.
Technology is also a key differentiation here as we can offer best in classofferings via our pre-approved programs.

Bihar

Assam NagalandOrissaMaharashtra

Lakshadweep

SikkimNarcondam Island
Tamil
Nadu

KeralaBarren Island
Andaman andNicobar islands

Given India's vast geography and limited digital infrastructure, branch networks play a
crucial role in facilitating last-mile distribution, especially in Tier 2 and rural areas.
DSAs operating from these branches will engage with underserved MSMEs, evaluate
and handle loan applications, and digitally uploaded to HQ.
| Confidential |18

Embedded -detail✓ Further expand the customer base through alliances with non-financial businesses such as
various industry leading players

AUM growth

AUM split by partner type2%

INR 63.1bn
11%*As of end of Mar’24

Wealth Mgmt & Credit

5%

Telecom
Real Estate

CAGR

12%

54%

+130%
16%

Brokerage
Marketplace
Others119k+

Active Customers
223% YoY Growth

INR 10.1bn

Why do Partners want to work with us

INR 2.2bn

FY22

FY23

Best Pre Qualified (“PQ” ) programs

FY26# Partners
2Best-in-class tech which drives superior customer experience

915+| Confidential |19

Branch-led -detail✓ AUM growth driven by expanding branch network and new product offering strategy targetingblue-chip segments

AUM Growth

Product Offering
INR 125.2bn

CAGR

Unsecured Business
Loans

Personal Loans

Small Business Loans

Loan Against Property+105%

Growth strategies
Branch network expansion

INR 23.3bn
Strong team in branch-led that has scaled the business injust 1 year by building DSA

INR 7bn
FY22

FY23

FY26

45

150+

Multiple products helps deepen DSA relationship as well as
opportunities to cross-sell# branches
20

Tie-up with leading Indian banks for Co-lending to increase
RoE| Confidential |20

Planned AUM✔ Aim to grow AUM focusing on direct lending, while also increasing off-balanced asset
Approx.

600
6,000

600bn yen

Off-balanced asset
第2ステップ
400
4,000

GNPA
0.48%

Branch-led

0.83%

Approx.

Embeddedfinance

210bn yenPartnershiplending

200
2,000

00

Direct lending by
Credit Saison India

Wholesalelending
FY22

FY23

FY24

FY25

FY26

Plan
| Confidential |21

Planned Consolidated Contribution Profit✔ Aim for 20 bn yen in FY26 and over 15% ROE by improving profitability and capital efficiency
through direct lending and off-balanced asset strategy

20bn yen200
20.0

Aim for15%
or more

150
15.0

10
10
10
9
9

100
10.0

9

2.96bn yen

5.0 50

9
9

ROE*
5％

00
FY21

FY22

FY23

*ROE: CS India figures are standalone basis.
Calculated as: Net income ÷ ((Beginning net assets + Ending net assets) ÷ 2) | Confidential |

8
FY24

FY25

FY26

Plan

22

Planned ROE/ROA

AUM

3x

c.

13%

FY23

1.7%1

5%2

• Increase the weighting of profitable products (BtoC)• Promote cross-selling• Improve capital efficiency through off-balanced asset strategy

36%

210 bn yen

18%

9%

Mid-term
Target

33%

52%

4%

15%+

Truly diversified Top 10 NBFC in India
Predominantly Consumer & MSME loans*RoA and RoE for overall business including investments in new verticals

FY23
Partnership lending

ROE

600 bn yen

Growth over a
3-year period

20%
19%

ROA

1 ROA：CS business profit basis

FY26
Embedded FinanceBranch-led

2 ROE :

Wholesale lending| Confidential |CS India figures are standalone basis
Calculated as: Net income ÷ ((Beginning net assets + Ending net assets) ÷ 2)

23

Key Strengths of Credit Saison India

1

Strong Credit Risk management
State of the art in-house underwriting developed with access to real customer data across multiple
products and lending cycles. Rigorous portfolio monitoring with the right feedback loops to ensure
resilient AUM is being built

2Technology led growth that is highly scalable
The company has built a strong, full stack tech platform that is powering its integration with partners, anddirect lending model3

Well diversified liability and strong shareholders
One of 12 CRISIL AAA rated NBFCs in India, which provides a cost of funds advantage. A robust lender baseof 30+ global and local banks. Strong parentage under the Credit Saison umbrella and Mizuho as a
strategic investor| Confidential |24

Strength 1) Risk - Underwriting✓ Underwriting with various data catered to each product/customer to mitigate credit risk

For MSMEs

For consumers•

Build an outstanding credit model by leveraging
partnership lending data and know-how•

Determine repayment ability through the use of open
and reliable data•

Efficient operation through automatic underwriting for
all applications•

Understand actual business conditions through onsite surveys•

Policy is reviewed when performance of DPD are higher
than benchmark line, and back-test is done with newpolicy•Cross-check consistency by comparing informationfrom multiple perspectives, including customer
declarations and third parties’ data•

Continuous forward looking investment in 3rd party datato continuously improve the existing models which are
already performing better than industry benchmarks
90+ by monthly vintage –against target benchmark

4.0%

Underwriting
Customer

B/S

3rd Party

P/L

Bank
state
ment

GST
info

Others4.0%

3.0%

Post policy
Changes

2.0%

1.0%

0.0%

0.0%
1

2

3

4

5

6

7

8

9 10 11 12 13 14 15

Ensure that conduct onsite surveys andmanagement interviews
are conducted to actual
situation of the business

2.0%

1.0%

Fraud check

Field Investigation

3.0%

1

2

3

4

5

6

7

8

9

10

11

12 13 14 15| Confidential |3rd party info
Registration
info

Others…

AddressTax #Rep info
etc…

Cust declared
info

25

Strength 1) Risk - Team
✓ Team has 350+ experienced Risk, Analytics and Collection talents

Chief Risk Officer

Anuj Gupta | アヌジュ グプタ••

17+ years of experience across analytics &credit underwriting
Previously, business director & head of credit
strategy & infrastructure at top 10 largest bankin the United States

Data Science&
Analytics

Size:

39

Consumer
Risk

Size:

11

Partnership
Risk

Size:

03

BranchSecured Risk

Size:

38

BranchSME Risk

Size:| Confidential |

162

Fraud
Control Unit

Size:

20

Wholesale
Risk

Size:

09

Operational
Risk

Collections

management

Size:

03

Size:

72
26

Strength 1) Risk – GNPA by vertical✓ Solid and well-constructed credit underwriting by strong team shows well-controlled GNPA
GNPA
VerticalCommentary
31 Mar 24
Wholesale lending

0.0%

Rigorous portfolio monitoring with sectoral & entity exposure
capped along with counter party risk management

Partnership lending

1.1%

Default loss guarantee structures to contain ECL and improve
profitability

0.9%

Our models are highly agile which allows us to make changes
very quickly whenever any early warning signal performance datais coming out higher than our expectations

Branch-led

1.1%

Phygital underwriting which we are also enhancing further by ourcredit models supported with government backed guarantee
schemes

Total

0.8%

Embedded Finance| Confidential |27

Strength 2) Tech – Partnership lending✓ Strong technology backend integration with 15+ leading fintech partners

Key Partnership Operational Metrics<5 Seconds

CS India API response time

97%

Approval rate

Partner NBFC
(Fintech)

Borrowers

Customer shown offer
basis agreed Policy

CS India extracts andvalidates KYC

Partner pushes Data
and Docs to CS for
Final approval

Validates policy,
triangulates data &approves nearinstantly

On approval, Partner
passes withdrawal
requestValidates the Request

Customer showsinterest
On approval,
customer completesmandate setup

99.9%

Server Uptime~1-2 months

Partner hits the CS
India KYC API

Customer receives
funds

Disburses directly tothe customer

Time to Integrate| Confidential |28

Strength 2) Tech – Embedded finance✓ Simple & intuitive UX powered by CS India’s tech stack enables a seamless customer journey✓ Also run best in class Pre-Qualified programs whereby the Final Offer provided to the customer is match to
the Pre-Qualified offer

Key Metrics

2－3mins

Partner sharesanonymized data

Pre-approved
limit to eligible
customers

Instantaneous
KYC Journey

Credit Limit
Set-up

Loan
Acceptanceby Customer

TAT on customer journeyc.85%

Match of PQ offer & Final
Offer

98%

STP of customer journeyon partner’s app poweredby CS India’s APIs

Rolls out pre-approved
offers based onunderwriting policies

Credit Check

De-dupe

BRE| Confidential |29

Strength 2) Tech - Capabilities✓ Strong tech backbone in case of partnerships gives “right to win” against peers

Deep API Library•

Custom API library allowing integration with partners
under a variety of arrangements

Partner Integration Playbook•

Tested playbook for quick integration through deep
multi-year experience with best-in-class fintechs

Automated Workflows•

100% of loan applications for consumer are completely
digitally processed without human intervention•

Strong team helmed by CTO with strong tech backbone
and with experience
Team strength of 160 across engineering & productTeam

Tech Architecture••| Confidential |Modular & cloud-native architecture comprising both inhouse developed software and domain-leading thirdparty solutions
30

Strength 2) Engineering & Product team✓ CS India has its own full-stack technology + Product team with over 160+ experienced talents

Chief Technology Officer

Dev Pathi | デヴ パシ••

20+ years of experience of technical, analyticalroles across financial services and online media
companies
Previously, Director of Technology at one of thelargest online lender in India
TTL Size :Product
Management

Size :

30

SoftwareEngineering

Size :

85| Confidential |Cloud & IT
Infrastructure

Size :

25

Center of
ExcellenceSize :

10160

SupportServices

Size :

1031

Strength 3) Diversified liability & Robust Lender Base
CS India is one of the few
AAA rated NBFCs in India

Diversified lender base and association
with marquee names
13 Private Banks + NBFCs

Consistent addition in lender baseover the quarters
CS India lender count (#)
32

9,356

23
14

NBFCs registered with RBI
9 PSU Banks5

Jul'21

507

Mar'22

Mar'23Mar'24

Building a diversified liability baseNon-Deposit
NBFCs
3 Japanese Banks

12

CRISIL AAA rated
NBFCs

We continue to diversify our liabilities tofurther optimize our liability mix:
Concluded our Maiden NCD in Aug’23& Maiden CP in Dec’23

4 Corporates and Mutual Funds
3 Other Foreign Banks| Confidential |32

Organization structure✓ Board consists diversified members, including an independent director who retired as an Executive
Director from the Reserve Bank of India (India's central bank)*As of end of May’24

Board

Katsumi Mizuno
CS Nominee Director

Masaki Negishi
CS Nominee Director

Yasuyuki Isobe
CS Nominee Director

Kosuke Mori
CS Nominee Director

Sanjay Arvind Athalye
Independent Director

Nanda Sameer Dave
Independent Director

Osamu Sugita
Mizuho Nominee
Director

Presha Paragash
Wholetime Director & CEOEngineering &Product

Risk & Analytics

Business

Finance

Operations

Capital Markets& Treasury

Compliance &LegalPeople &CultureDev Pathi
CTO

Anuj Gupta
CRO

Nishant Jasapara
CBO

Bhawani Jhanwar
CFO

Saurabh Mathur
COO

Anudeep Ganguli
Chief Treasury
OfficeTarun Rajagopal
Chief Compliance
Officer

Ashwini Puthraya
SharmaEVP

Team
Size: 160

Team
Size: 350

Team
Size: 312

Team
Size: 45

Team
Size: 75

Team
Size: 12Team
Size:13| Confidential |Team
Size: 39

CEO OfficeInternal Audit

Varun Bhandari
Head of Corp Dev

Pawan Bansal
Head IATeam
Size:7Team
Size:333

Governance Structure✓ Strengthen Japan-IHQ support system to support the rapidly expanding CS India businessand build a further strong governance system with Mizuho bank

Management / Support / Restraint

Credit Saison ＋ Saison International
Group managementagreement＋

Applications/reports

Approval/instructions

Credit Saison India
Board ofDirectors•••

Independent directors are the members of almost of all the eight committees
Credit Saison and/or Saison International members join all committees as members or
observers••

Credit Saison newly established Global Audit Office this fiscal year
Have a cooperative relation between Saison International and CS India

Committees •Credit Committee,
Risk Management, etc.

Internal
Audit

Three directors from Credit Saison and one director from Mizuho Bank
Two independent directors, including a former Executive Director from the Reserve Bank of India(India's central bank) =>local director is included in•
RiskManagement •Have a Credit and Risk management team of 350 members in CS India
Monthly credit risk management and monitoring is conducted by Credit Saison| Confidential |34

Team Engagement| Confidential |To be a top 10 NBFC in India✓ Move towards a sustainable growth stage through differentiated, high-return businesses.
Aim to be a top 10 NBFC in India
AUM(bn yen)《Scaleup》《Startup》

New med-term
management plan
FY24-26≈

Approx.

600.0

500.0

《Sustainable growth》 Goals

Move towards asustainable growthstage throughdifferentiated, highreturn businesses

100.0

Trillions of yen
Market capitalization=

1 trillion yen scale

Approx.

≈

AUM=

210.0

Start ofbusiness

FY19 Nov.

FY22

FY23

Build launchpad&
Acquire insights/data

FY24

FY26

Build differentiatedmodel&
Expand scale andreturns

Sustainable growth| Confidential |36

Where we are and Top10✓ We are among the top 50 NBFCs (out of 9,000+) in just 5 years of operations, and areamongst the fastest growing players in the non-bank lending space
AUM

Profit After Tax

Net Worth

AUM CAGR

1

41.3

1.81

9.6

29%

2

35.2

0.46

3.5

7%

3

28.1

0.93

6.1

21%

4

19.7

0.42

2.9

27%

5

19.2

0.43

2.4

26%

6

14.4

0.08

2.1

26%

7

12.8

0.24

2.5

8%

8

10.8

0.30

1.7

12%

9

10.3

0.41

2.9

14%

10

10.0

0.29

2.9

-1%

...

-

-

-

-

48

1.6

0.02

0.47

49%

49

1.5

0.02

0.44

201%

50

1.5

0.06

0.30

12%

Sr. No.

(USD bn)(USD bn)| Confidential |(USD bn)*As of end of Dec’23,
based on our research(FY20-FY23)

37

Horizontal expanding✓ Expand resources & capabilities we have cultivated in India horizontally to lending business in othercountries and other new markets

Business

Operational
Excellence

Tech development& operation

New business by utilizing“Footprint” “Team” and “structure”
we built so far globally

GlobalLending

Inorganic growth
may be consideredEnter new markets
by leveraging our ‘strengths’
we have cultivatedImprove our advantages tobecome a long-term, highprofitable business

Risk management for
Lending business+| Confidential |Market/region38

Disclaimer
The statements in this material with respect to the plans and forecasts
are forward-looking statements, except for the facts of the past, andinvolve uncertainties. Please note that actual business performance may
significantly differ from these forecasts due to various factors.

Information in this material is not aimed at soliciting any investment.
The company does not provide guarantees of any kind regarding thecontents of this material. The company or parties providing theinformation assume no responsibility for any damages resulting fromthis material.

| Confidential |39