November 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: Kentaro Hibi, General Manager, Corporate Governance Office(E-mail :info@jsf.co.jp)

Formulation and Public Release of the Long-term Management Vision Targeted by JSF
Pursuant to our “Medium-term Management Policy” formulated and publicly released on
November 19, 2021, and our 7th Medium-term Management Plan based thereon, Japan
Securities Finance Co., Ltd. (hereinafter “JSF”), in its capacity as a TSE Prime-listedcompany that supports the infrastructure of securities and financial markets, has set amanagement goal of achieving an ROE of 5% by the end of FY2025, while strengthening
its corporate governance. Additionally, JSF has focused its management efforts on
increasing its earning power and improving its capital efficiency. As a result of these
initiatives, according to the FY2023 estimated performance figures calculated based on
the financial results for the second quarter of FY2023, we now expect to achieve the 5%
ROE goal set out in our Medium-term Management Policy in the current fiscal year, twoyears ahead of our expectation. In addition, the market's evaluation of JSF's corporate
value has also steadily improved, with P/B ratios recently hovering around 1x(Reference).
In this way, given that JSF's management efforts to date have achieved a certain levelof success and that we have reached a milestone, JSF now believes it is appropriate toreorganize its approach to future management, and its Board of Directors has engaged
in repeated discussions with regard thereto.
As a result, JSF has reached the conclusion that it is appropriate to consider and publicly
release a two-tiered approach that: (1) sets out the long-term management vision
targeted by JSF, and (2) formulates, in line with this long-term management vision, aMedium-term Management Plan and a shareholder return policy based on specificbusiness strategies.
Accordingly, JSF recently formulated and publicly released the new “Long-termManagement Vision Targeted by JSF” (Attachment 1), and based thereon, JSF has
decided to upwardly revise its management goals for the 7th Medium-term ManagementPlan through FY2025 (Attachment 2), and to formulate a new “Shareholder Return Policy
During the Period of the 7th Medium-term Management Plan” (Attachment 3).
Furthermore, since the Medium-term Management Policy formulated and publicly
released on November 19, 2021, has, for all intents and purposes, fulfilled its role, wehave decided to expansively incorporate this policy into our recently developed Longterm Vision and the like.
Based on our corporate philosophy and its recently formulated Long-term Management
Vision and revised the 7th Medium-Term Management Plan, JSF, in its capacity as asecurities finance company that takes on an infrastructural function in securities andfinancial markets, is determined to continue to mobilize the collective efforts of its Group
companies to achieve sustainable growth and the enhancement of corporate value overthe medium- and long-term, while maintaining strong financial soundness.
End of Document1

<Reference> Trends in JSF’s ROE and PBR

6.00

Trends in JSF's ROE and PBR％

X

1.2
ROE (Left-hand scale)
5.11

PBR (Right-hand scale)
5.00

1

4.36
3.79

4.00

0.91
0.8

3.032.98

3.00

2.66

2.65

2.59
2.19

2.00

0.6

0.64

1.90

0.59

0.55

0.54

1.00

0.40

0.42

0.4
0.38

0.35

0.30
0.00

0.2
03/2015

03/2016

03/2017

03/2018

03/2019

03/2020

03/2021

03/2022

03/2023

09/2023* ROE as of the end of 09/2023 was calculated based on the FY2023 estimated performance
figures.

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Attachment 1

Long-term Management Vision Targeted by JSF

1. Vision of the Future Targeted by JSF
As Japan’s only securities finance company supporting the infrastructural functions ofsecurities and financial markets, JSF aims to be a distinct and unique company, with ahigh degree of agility and flexibility, that achieves sustainable growth and enhances its
corporate value, while maintaining strong financial soundness, through its contributions
to the development of securities and financial markets.

2. Corporate Message

Be unique. Be a pioneer.
3. Long-term Direction
As Japan’s only securities finance company, in the future as well, JSF will continue toagilely and flexibly address the trading needs of securities and financial market
participants. Through its contributions to market development, JSF will seek toconcentrate the collective efforts of its Group companies to sustain growth and enhance
its corporate value, while maintaining strong financial soundness.
Under this management direction, in the future as well, JSF will strive to steadilystrengthen its earnings base and seek the stable and steady improvement of its capitalefficiency, while remaining mindful of the cost of capital, and will continue to work towards
the steady improvement of its ROE, keeping the 8% level in mind.
At the same time, with regard to shareholder returns, JSF will continue to maintain a total
payout ratio of 100% during the period of its 7th Medium-Term Management Plan (thethree fiscal years from FY2023 through FY2025), and will fully strive to enhanceshareholder returns thereafter as well.
Through these management efforts, JFS aims to establish a market valuation with a PBR
in excess of 1x.
In addition, under its organizational design as a company with a nomination committee,etc., JSF will strive to strengthen its corporate governance by tackling sustainability
issues while focusing on the further improvement of the effectiveness of the deliberationsby its Board of Directors and respective committees, the further enhancement of thedisclosure of information, and the formation of a deep human capital base.
End of Document

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Attachment 2

Revision of Management Goals under the 7th Medium-Term Management Plan

Based on its long-term vision and its performance in FYE March 2024, JSF has upwardly
revised its management goals, as follows, under the 7th Medium-Term Management
Plan.

ROE: Maintain a stable level above 5% and aim for further improvement.
Consolidated recurring income: Maintain a stable level of over 10 billion yen and aim forfurther improvement.
(Reference) Management Goals Prior to Revision
To achieve consolidated recurring income of 10 billion yen and ROE of 5% by FY2025.
*In conjunction with the above-mentioned revisions, JSF has not made any changes
to the basic structure of its officers' bonuses and the reference indexes and reflection
methods for equity-based remuneration, but has made the required changes to thestandard values based on the estimated progress of equity-based remuneration.
End of Document4

Attachment 3

Shareholder Return Policy
During the Period of the 7th Medium-term Management PlanWith respect to shareholder returns, form a viewpoint of further enhancement, JSF willcontinue its policy of aiming for a total payout ratio of 100% on a cumulative basis in theyears from FY2023 through FY2025, through the payment of dividends and the flexible
implementation of share repurchases.
With regard to the payment of dividends, traditionally JSF has been very proactive, andfor FY2023 it will increase its dividend to JPY44, and in the period from FY2024 throughFY2025, it will proactively pay dividends, aiming for a payout ratio of 70%.

(Reference) Shareholder Returns Policy Prior to Revision
With regard to shareholder returns, in the period from FY2021 through FY2025, JSF
seeks to achieve a total payout ratio of 100% on a cumulative basis, through payment ofdividends and the flexible implementation of share repurchases.
With regard to the payment of dividends, JSF is actively seeking to pay an annual
dividend per share of no less than JPY30.
End of Document

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

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