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FY2025 Interim Financial Results and Progress on the Mid-term Plan November 13, 2025
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Interim financial highlights 8 P/L 9 Balance sheet 18 Capital adequacy ratio 25 Group companies 26 Contents 01 Progress on the Mid-term Plan “Aozora 2027” 02 FY2025 Interim Financial Results Overview Key points 3 Progress on the Mid-term Plan “Aozora 2027” —KPIs— 4 Progress on the Mid-term Plan “Aozora 2027” —Alliance with Daiwa Securities Group— 5 Enhancing corporate value 6 03 Progress on the Mid-term Plan “Aozora 2027” (data updates) 04 Capital Policy 05 Appendix 2 27 7 38 41 ---------------------------------------------------- ----- --------------------------- ------------------------------ ------------------------------------------------ --------------------------------------------------------------- --------------------------------------- ------------------------------------------------ ---------------- ----- ---------- ------------ ----------------------------------- ---------------------------------------- (Note) “1Q” refers to the period from April to June, “2Q” refers to the period from July to September, “3Q” refers to the period from October to December, “4Q” refers to the period from January to March, “1H” and “interim” refer to the period from April to September, and “2H” refers to the period from October to March. Copyright © 2025 Aozora Bank, Ltd.
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Copyright © 2025 Aozora Bank, Ltd. 2 01 Progress on the Mid-term Plan “Aozora 2027”
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Key points Copyright © 2025 Aozora Bank, Ltd. 3 Progress on the Mid-term Plan “Aozora 2027” Domestic earning assets* expanded in light of the return to positive interest rates in Japan Non-interest income increased, mainly driven by growth in LBO finance and fund investments given increased M&A activity The number of corporate accounts exceeded 200,000 and deposits also exceeded 1 trillion yen Expanded BaaS offerings for corporate customers (e.g. 01 Bank, Ltd., a wholly-owned subsidiary of Senshu Ikeda Holdings, Inc.) Net income for the interim period turned positive for the first time since the start of its business in 2018 The positive impact was approximately 2.1 billion yen on a contract basis, against the full-year plan of 3.3 billion yen on a business profit basis In the corporate business, transactions with new customers expanded due to increased referrals. The growth of our pipeline is accelerating In the retail business, we began the sale of Daiwa’s fund wraps in October, and reached the planned AUM of 15 billion yen for FY2025 in just one month * Total of loans and securities (excluding loans to the go vernment, government bonds, etc.) 1 Strategic Investments Business 2 Alliance with Daiwa Securities Group 3 GMO Aozora Net Bank
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2.8 3.0 3.6 1.7 1.6 1.9 End-Mar. 2025 End-Sep. 2025 End-Mar. 2028 Plan End-Mar. 2030 Target Domestic earning assets Overseas earning assets 8.7 ％ 8.9% 8％ or higher 9％ or higher 13.6 20.5 22.0 33.0 50.0 4.9% 5.9% 7% (approx.) 8% or higher -3.0% -1.0% 1.0% 3.0% 5.0% 7.0% 0 10 20 30 40 50 60 70 FY2024 FY2025 Interim FY2027 Plan FY2029 Target Initial forecast 18.0 Progress on the Mid-term Plan “Aozora 2027” —KPIs— Copyright © 2025 Aozora Bank, Ltd. 4 Expansion of earning assets The alliance with Daiwa Securities Group also contributed to asset expansion mainly in the Strategic Investments Business serving as a growth driver Steady profit growth The Aozora Group’s profit growth was driven by the growth of the Strategic Investments Business and GMO Aozora Net Bank Mid-term Plan period 4.6 4.5 5.5 ROE Profit attributable to owners of parent CET1 ratio Earning assets * * Annualized basis (forecast) Mid-term Plan period ROE and profit attributable to owners of parent CET1 ratio and earning assets KPIs ROE Profit attributable to owners of parent (billion yen) CET1 ratio Earning assets (trillion yen)
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Progress on the Mid-term Plan “Aozora 2027” —Alliance with Daiwa Securities Group— Copyright © 2025 Aozora Bank, Ltd. 5 FY2025 Interim FY2025 Plan FY2027 Targets Net revenue Approx. 1.2 bn yen 3.3 bn yen 10.0 bn yen Financing amount (total) Approx. 124.0 bn yen 233.0 bn yen 730.0 bn yen Fund wrap balances (total) - 15.0 bn yen 80.0 bn yen Corporate (incl. support for growing companies) Real estate-related business M&A Other (asset finance, trust business, etc.) Corporate business Number of information sharing agreements *2 received The positive impact was approximately 2.1 billion yen on a contract basis, against the full-year plan of 3.3 billion yen The number of information sharing agreements* 2 received by both companies significantly increased to approximately 740. A total of 74 new contracts have been executed The lead time for contract signing has been significantly reduced for referred customers, compared to new customers without referral We began the sale of fund wrap “Aozora Mirai IrodoriWrap” offered by Daiwa Securities on October 1, and reached the planned AUM of 15 billion yen for FY2025 in just one month Retail business Wealth management Total financing provided for customers referred by Daiwa Securities Group Number of new contracts (total) for customers referred by Daiwa Securities Group 0 100 200 300 400 500 600 700 800 End-Mar. 2025 End-Sep. 2025 450 (approx.) 740 (approx.) 0 200 400 600 800 1,000 1,200 1,400 End-Mar. 2025 End-Sep. 2025 40 bn yen (approx.) 124 bn yen (approx.) 0 10 20 30 40 50 60 70 80 End-Mar. 2025 End-Sep. 2025 31 74 Major areas of collaboration *1 Integrated disclosure of corporate and retail businesses performance, reflecting the increased collaborations between the two businesses driven by the progress of the allia nce *2 In accordance with the firewall regulations between se curities firms and banks, the information sharing agreements are obtained from customers in advance of customer ref errals between the two companies. Positive impact of alliance *1
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1x or higher 0.7 x (approx.) PER as of September 30, 2025 FY2029 target ROE Enhancing corporate value Copyright © 2025 Aozora Bank, Ltd. 6 Aozora Mission: Contribute to the development of society through the creation of new value-added financial services FY2024 FY2025 Interim FY2027 Plan FY2029 Targets Profit attributable to owners of parent 20.5 bn yen 13.6 bn yen/ 22.0 bn yen 33.0 bn yen 50.0 bn yen ROE 4.9% 5.9%* 2 Approx. 7% 8% or higher CET1 ratio 8.7% 8.9% 8% or higher 9% or higher Earning assets* 1 4.5 tn yen 4.6 tn yen 5.5 tn yen - Impact of alliance with Daiwa (business profit basis) - Approx. 1.2 bn yen/ 3.3 bn yen +10.0 bn yen - *1 Total of loans and securities (excluding loans to the go vernment, government bonds, etc.) *2 Annualized basis Strategic Investments Business Alliance with Daiwa Securities Group GMO Aozora Net Bank Profitability Reduction in legacy assets Capital efficiency RORA improvement Optimal capital allocation PBR PBR
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Copyright © 2025 Aozora Bank, Ltd. 7 02 FY2025 Interim Financial Results Overview
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*1 Total of loans and securities (excluding loans to the go vernment, government bonds, etc.) *2 Business profit + Gains/losses on stock transactions, etc. (Gai ns/losses on stock transactions, etc. = Gains/losses on stock transactions + Gains/losses on equity derivatives) Interim financial highlights Copyright © 2025 Aozora Bank, Ltd. 8 Strategic Investments Business • Domestic earning assets expanded mainly in corporate loans and LBO finance • Non-interest income increased significantly mainly due to the strong performance of LBO finance as well as fund investments Alliance with Daiwa Securities Group • The overall positive impact of the alliance was approximately 1.2 billion yen on a business profit basis in 1H of FY2025. In our corporate business, the financing amount totaled approximately 124 billion yen as the alliance began producing results in a range of areas. In our retail business, we began the sale of Daiwa’s fund wraps in October, and reached the planned AUM of 15 billion yen for FY2025 in just one month GMO Aozora Net Bank • Net revenue increased, exceeding its plan, mainly driven by fee income. Its net income for the interim period turned positive for the first time 2Q dividend Domestic earning assets* 1 increased by approximately 220 billion yen compared to March 31, 2025, mainly driven by our Strategic Investments Business Net revenue and net earnings both made strong progress towards the earnings forecasts, driven by growth in domestic net interest income and non-interest income 22 yen / share (+ 3 yen yoy) Business updates 13.6 billion yen 1.6 billion yen increase year-on-year Progress rate: 62 % 21.3 billion yen 7.2 billion yen increase year-on-year Progress rate: 61 % 52.1 billion yen Net revenue 10.6 billion yen increase year-on-year Progress rate: 55 % Business-related profit*2 Profit attributable to owners of parent 4 billion yen increase , excluding the one-time gain from the liquidation of an overseas subsidiary recorded in the previous year Dividend per share 1Q 2Q 3Q 4Q Full-year Current forecast (FY2025) 88 yen Dividend payment (FY2025) 22 yen 22 yen - - -
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FY2024 (billion yen) Net revenue 41.4 52.1 +10.6 95.0 54.9% Net interest income 24.7 24.3 -0.4 Non-interest income 16.7 27.8 +11.1 General & administrative expenses -30.3 -32.1 -1.7 1.2 1.0 -0.1 Business profit 12.3 21.0 +8.7 32.0 65.8% Credit-related expenses -3.6 -6.0 -2.4 Gains/losses on stock transactions 1.8 0.5 -1.3 Ordinary profit 9.9 15.3 +5.3 30.0 51.3% Extraordinary profit/loss 3.1 -0.0 -3.1 Profit before income taxes 13.1 15.3 +2.2 Taxes -1.9 -1.6 +0.2 0.7 -0.1 -0.8 11.9 13.6 +1.6 22.0 61.9% <Reference> Plan Business-related profit 14.1 21.3 +7.2 35.0 61.1% Change B - A Profit/loss attributable to non-controlling interests FY2025 Forecast FY2025 Gains/losses on equity method investments Profit attributable to owners of parent Progress Interim A Interim B 13.6 20.5 22.0 33.0 4.9% 5.9% 7% (approx.) -3.0% -1.0% 1.0% 3.0% 5.0% 7.0% 9.0% 0 10 20 30 40 50 FY2024 FY2025 Interim FY2027 Plan * Annualized basis Copyright © 2025 Aozora Bank, Ltd. 9 P/L * 1 3 Net revenue progressed strongly driven by growth in non-interest income, mainly from the Strategic Investments Business, as well as in domestic net interest income G&A expenses were managed within the budget while we remained focused on investments in human capital. As a result, business profit and business-related profit progressed strongly Necessary provisions were made, mainly for U.S. office loans (see page 21) Profit attributable to owners of parent increased 14% year-on-year, 62% progress towards the earnings forecast Strong domestic business performance towards achieving FY2025 earnings forecasts 3 1 2 4 4 2 Profit attributable to owners of parent and ROE Profit attributable to owners of parent (billion yen) ROE 2 2 (forecast) P/L summary (1)
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*1 The Bank’s business groups were reorganized into the following three units from FY2025: “Strategic Investments Unit,” “Market & International Business Unit,” and “Customer Relations Unit.” *2 Management accounting basis. “Other” includes (i) business-related profit not included in the business units (e.g. G&A expenses not allocated to each unit, gains/losses on th e sale of equities not included in any units), (ii) gains on the sale of equities held solely for investment purposes, and (iii) revenue adjustment related to funding contribution. FY2024 Interim FY2025 Interim Strategic Investments Unit* 1 GMO Aozora Net Bank Credit- related expenses Other Absence of one-time gain from the liquidation of an overseas subsidiary Market & International Business Unit, Customer Relations Unit* 1, etc. Business-related profit by segment*2Major factors for changes in profit attributable to owners of parent (FY2024 interim vs FY2025 interim) P/L summary (2) 10 P/L 11.9 -2.3 +7.2 -1.2 +1.1 -0.7 13.6 -2.4 +4.3 billion yen mainly from LBO finance (billion yen) Copyright © 2025 Aozora Bank, Ltd. (billion yen) 13.7 20.9 +7.2 26.7 79% 5.6 5.1 -0.5 10.6 48% 1.0 0.4 -0.5 0.3 133% -0.9 0.2 +1.1 Other -5.2 -5.4 -0.1 Total 14.1 21.3 +7.2 35.0 61% Strategic Investments Unit Market & International Business Unit Customer Relations Unit GMO Aozora Net Bank FY2024 Interim A Change A - B FY2025 FY2025 Plan Progress Interim B Business-related profit
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-10.6 -11.1 0.7 0.6 13.0 20.4 10.5 11.0 -15 -10 -5 0 5 10 15 20 25 30 LBO finance 34% Domestic corporate business (Incl. venture debt) 30% Business recovery finance 16% Domestic real estate finance 13% Other (M&A business, Environmental finance) 7% 31.7 billion yen (+7.9 billion yen *4) Copyright © 2025 Aozora Bank, Ltd. 11 (billion yen) Business-related profit 20.9 P/L Net revenue by business* 3 Business-related profit represented 79% progress towards the FY2025 plan LBO finance and corporate loans were the major contributors to an increase in domestic net interest income Non-interest income increased, mainly driven by loan-related fee income from LBO financing transactions as well as gains from limited partnerships associated with exit transactions for NPLs and buyouts 13.7 Results by business segment *1 —Strategic Investments Unit— FY2025 plan: 26.7 bn yen (progress rate: 79%) *1 Management accounting basis *2 “Other” included “Gains/losses on stock transactions, etc.” and “Amount of revenue commensurate with the degree of contribution related to funding activity.” Starting from FY2025, the amount of revenue commensurate with the degree of contribution r elated to funding activity, which is a growth base in “Aozora 2027,” was included in net revenue of each unit. (Results for FY2024 have been revised retrospectively.) *3 Based on the net revenue for each business group *4 Year-on-year comparison Areas of collaboration with Daiwa Securities Group LBO finance Environmental finance Domestic real estate finance Business recovery finance Domestic corporate business M&A / business succession advisory services Venture debt Equity investments with a primary focus on engagement Major businesses in the Strategic Investments Unit • Loan-related and M&A fee income • Gains/losses from limited partnerships • Revenue from the sale of derivatives • Interest on loans and discounts ■ Net interest income ■ G&A expenses ■ Other* 2 ■ Non-interest income FY2025 Interim FY2024 Interim
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-1.2 -1.3 0.0 0.0 2.4 6.2 3.6 4.4 -5 -3 -1 1 3 5 7 9 11 13 988.2 1,068.0 1,119.4 66 bps 61 bps 60 bps End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 Loan outstandings Loan spread 300.7 319.0 428.8 245 bps 247 bps 246 bps End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 Loan outstandings Loan spread -4.1 -4.7 0.3 0.7 4.1 5.5 3.5 3.7 -5 -3 -1 1 3 5 7 9 11 13 Copyright © 2025 Aozora Bank, Ltd. 12 P/L Acquisition & Structured Finance Group (LBO finance) Corporate Business Group (domestic corporate business, venture debt, equity investments with a primary focus on engagement) Loan outstandings and spread* 3Loan outstandings and spread* 3 9.2 4.8 5.3 3.8 Results by business segment *1 —Strategic Investments Unit— *1 Management accounting basis *2 “Other” included “Gains/losses on equity method investments,” “Gains/losses on stock transactions, etc.,” and “Amount of revenue commensurate with the degree of contribution related to funding activity.” Starting from FY2025, the amount of revenue commensurate with the degree of contribution relate d to funding activity, which is a growth base in “Aozora 2027,” was included in net revenue of each unit. (Results for FY2024 have been re vised retrospectively.) *3 Loan outstandings and spread for each business group (excl . NPLs) (billion yen) (billion yen) (billion yen) (billion yen) Business-related profit in major business groups ■ Net interest income ■ Non-interest income ■ Other* 2 ■ G&A expenses ■ Net interest income ■ Non-interest income ■ Other* 2 ■ G&A expenses FY2025 Interim FY2024 Interim FY2025 Interim FY2024 Interim
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-2.0 -2.1 -3.8 -3.6 0.0 -0.0 1.2 1.0 -3.0 -0.9 2.0 0.5 4.0 4.1 6.6 5.8 -5 -3 -1 1 3 5 7 9 11 13 -7.1 -6.9 1.2 0.9 -0.8 0.0 12.3 11.0 -10 -5 0 5 10 15 -1.0 1.0 6.0 3.7 Copyright © 2025 Aozora Bank, Ltd. 13 5.6 5.1 P/L The Market & International Business Unit advanced portfolio restructuring in line with the Bank’s risk appetite policy to secure stable returns Financial Markets Group (ALM & securities) International Business Group (overseas corporate loans) Results by business segment *1 —Market & International Business Unit— FY2025 plan: 10.6 bn yen (progress rate: 48%) *1 Management accounting basis *2 “Other” included “Gains/losses on equity method investments,” “Gains/losses on stock transactions, etc.,” and “Amount of revenue commensurate with the degree of contribution related to funding activity.” Starting from FY2025, the amount of revenue commensurate with the degree of contribution relate d to funding activity, which is a growth base in “Aozora 2027,” was included in net revenue of each unit. (Results for FY2024 have been re vised retrospectively.) ALM & securities Overseas corporate loans (North America & Europe) Overseas real estate non-recourse loans (North America) Major businesses in the Market & International Business Unit (billion yen) (billion yen) Business-related profit in major business groups ■ Net interest income ■ Non-interest income ■ Other* 2 ■ G&A expenses FY2025 Interim FY2024 Interim FY2025 Interim FY2024 Interim FY2025 Interim FY2024 Interim Business-related profit (billion yen)
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-1.7 -1.8 -3.2 -3.0 1.1 0.8 0.8 0.7 1.3 1.2 2.1 2.0 0.5 0.4 -0.0 0.0 -8 -6 -4 -2 0 2 4 6 8 -4.9 -4.9 1.9 1.6 3.4 3.3 0.5 0.4 -10 -8 -6 -4 -2 0 2 4 6 8 10 1.2 0.6 -0.2 -0.2 Copyright © 2025 Aozora Bank, Ltd. 14 1.0 0.4 P/L The Customer Relations Unit generated revenue by increasing AUM balances while contributing as the funding platform that underpins the Aozora Group’s business expansion Allied Banking Group (financial institutions business) Retail Banking Group (retail banking business) Results by business segment *1 —Customer Relations Unit— FY2025 plan: 0.3 bn yen (progress rate: 133%) *1 Management accounting basis *2 “Other” included “Gains/losses on equity method investments,” “Gains/losses on stock transactions, etc.,” and “Amount of revenue commensurate with the degree of contribution related to funding activity.” Starting from FY2025, the amount of revenue commensurate with the degree of contribution relate d to funding activity, which is a growth base in “Aozora 2027,” was included in net revenue of each unit. (Results for FY2024 have been re vised retrospectively.) Financial institutions business (financial institution network, asset securitization business) Retail banking business (deposits, wealth management business) Major businesses in the Customer Relations Unit (billion yen) (billion yen) Business-related profit in business groups ■ Net interest income ■ Non-interest income ■ Other* 2 ■ G&A expenses FY2025 Interim FY2024 Interim FY2025 Interim FY2024 Interim FY2025 Interim FY2024 Interim Business-related profit (billion yen)
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0 1,000 2,000 3,000 4,000 5,000 6,000 FY2022 FY2023 FY2024 FY2025 Interim 77k 125k 184k 214k 413.4 615.9 946.7 1,141.0 0 200 400 600 800 1,000 1,200 0 5 10 15 20 25 30 35 End-Mar. 2023 End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 Number of corporate accounts Deposit balances (billion yen) -4.5 -5.5 2.8 3.9 0.8 1.8 -10.5 -8.5 -6.5 -4.5 -2.5 -0.5 1.5 3.5 5.5 (billion yen) 1.5 2.1 3.9 6.1 3.2 5.7 9.8 -1.0 1.0 3.0 5.0 7.0 9.0 11.0 FY2022 FY2023 FY2024 FY2025 Interim Business profit -3.8 -2.7 0.3 0.6 Net income -4.1 -3.7 -1.8 0.1 -0.9 0.2 Copyright © 2025 Aozora Bank, Ltd. 15 P/L Interim Number of corporate accounts and deposit balances Total number of “BaaS byGMO Aozora” contracts Deposit balances: Over 1 tn yen Number of corporate accounts: Over 200k Net revenue* 2 Interim Number of transfer transactions Results by business segment —GMO Aozora Net Bank— GMO Aozora Net Bank achieved positive net income in 1H for the first time, driven by an increase in fee income reflecting the expansion of the number of corporate accounts *1 Management accounting basis *2 GMO Aozora Net Bank’s non-consolidated results A standalone service that offers GMO Aozora Net Bank’s banking functions to financial and non- financial companies, allowing them to promote operational efficiency and create financial services •Fee income (mainly from remittances and debit cards) ■ Net interest income ■ Non-interest income ■ G&A expenses FY2025 Interim FY2024 Interim Business-related profit* 1 (billion yen) 454 629 827 936 End-Mar. 2023 End-Mar. 2024 End-Mar. 2025 End-Sep. 2025
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0.76% 0.92% 0.99% 0.90% 1.14% 1.42% 0.14% 0.22% 0.43% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% FY2023 FY2024 FY2025 Interim Differences in yields between domestic loans and deposits Yield on loans Yield on deposits 0.91% 1.08% 0.96% 1.39% 1.48% 1.30% 0.05% 0.09% 0.27% 0% 1% 2% FY2023 FY2024 FY2025 Interim Net interest margin Lending margin Securities margin Domestic net interest income significantly increased due to higher yen interest rates and an increase in domestic loan outstandings, while overseas net interest income declined due to a decrease in loans and tighter spreads Differences in yields between domestic loans and deposits expanded ⁃ Interest rates on deposits were managed within the planned levels FY2024 (billion yen) Net interest income 24.7 24.3 -0.4 Domestic 11.0 16.2 +5.2 Overseas 13.7 8.0 -5.6 Interest income 81.7 78.8 -2.9 Incl. interest on loans and discounts 66.3 59.0 -7.2 Incl. interest and dividends on securities 10.4 12.7 +2.3 Interest expenses -56.9 -54.4 +2.5 Incl. interest on deposits and NCDs -6.3 -14.1 -7.8 Incl. repurchase interest, etc. -8.2 -8.0 +0.2 Incl. interest on swaps -38.1 -26.9 +11.2 Change B - A Interim A Interim B FY2025 Copyright © 2025 Aozora Bank, Ltd. 16 P/L 1 1 2 2 Net interest margin, lending margin and securities margin Differences in yields between domestic loans a nd deposits Net interest income Overall net interest income was almost even compared to the previous year, but increased significantly domestically 2 * * * “Domestic” and “Overseas” were redefined during the FY2025 interim period. Based on the new definition, 1Q results were 7.6 billion yen in “Domestic” and 3.9 billion yen in “Overseas.”
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Net fees and commissions increased due to growth in loan-related fee income, mainly associated with LBO finance, as well as GMO Aozora Net Bank’s increased profitability Gains/losses from limited partnerships increased due to growth in gains from exit transactions associated with NPLs and buyouts FY2024 (billion yen) Non-interest income 16.7 27.8 +11.1 Net fees and commissions 10.4 15.7 +5.3 Incl. loan-related fee income 3.8 6.9 +3.1 Incl. GMO Aozora Net Bank fee income 2.6 3.8 +1.2 Incl. investment trust fee income 2.1 2.4 +0.2 Incl. M&A fee income 0.3 0.7 +0.3 Net trading revenues 1.3 1.5 +0.1 FY2025 Interim B Change B - A Interim A Net other ordinary income 4.8 10.5 +5.6 2.3 0.7 -1.6 5.6 9.5 +3.8 Real estate/ Distressed loan-related 2.6 5.6 +2.9 Buyout/venture-related 1.5 2.6 +1.0 Other 1.4 1.2 -0.1 1.8 0.5 -1.3 0.8 0.5 -0.3 1.2 1.0 -0.1 Incl. gains/losses on bond transactions Incl. gains/losses from limited partnerships Incl. gains/losses on equity investments Gains/losses on equity method investments Gains/losses on stock transactions Jan. -Jun. Jan. -Jun. （billion yen ） 9.6 8.7 -0.9 Change B - A 2025 B 2024 A Net profit * Uses an exchange rate of 0.0058 yen per 1 Vietnamese do ng * Management accounting and mark-to-market basis. Investment income includes gains/losses from limited partnership, gains/losses on stock transactions, and interest and dividends on securities. 94.5 75.2 72.9 77.2 65.7 70.6 76.1 75.2 42.3 42.8 44.4 42.4 19.2 26.4 31.7 36.4 33.6 35.7 33.9 40.6 36.3 43.9 36.5 36.3 291.8 294.9 295.6 308.3 End-Mar. 2023 End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 Other (incl. overseas debt funds) Domestic/overseas equity investments Venture funds Buyout funds Investment in business recovery claims Real estate-related equities 17 P/L * * Non-interest income significantly increased, primarily driven by fee income and gains/losses from limited partnerships 1 2 1 2 * From FY2024 4Q results, gains/losses from limited partne rships include part of the gains/losses recorded by Aozora Loan Services —Orient Commercial Joint Stock Bank— Aozora’s equity method affiliate (Vietnam) <Reference> Equity investments* (billion yen) Aozora’s FY2025 interim results include 15% of OCB’s net profit (incl. goodwill amortization) recorded in Jan-Jun. 2025. Non-interest income, Gains/losses on stock transactions, Gains/losses on equity method investments Copyright © 2025 Aozora Bank, Ltd.
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0 1 1 2 2 End-Mar. 2025 End-Sep. 2025 End-Mar. 2028 plan 1.7 tn yen 1.6 tn yen 1.9 tn yen 0 1 1 2 2 3 3 4 End-Mar. 2025 End-Sep. 2025 End-Mar. 2028 plan 2.8 tn yen 3.0 tn yen 3.6 tn yen 4.1 tn yen -43.4 bn yen 1.4 tn yen 2.6 tn yen 6.5 tn yen 0.4 tn yen +46.3 bn yen +400.2 bn yen +230.1 bn yen +159.3 bn yen +13.6 bn yen Domestic 2.9 tn yen Overseas (overseas ratio) 1.2 tn yen (30%) Copyright © 2025 Aozora Bank, Ltd. 18 Earning assets Domestic earning assets Overseas earning assets Approx. 220 bn yen increase from March 31, 2025, progressing in line with the Mid-term Plan Approx. 80 bn yen decrease from March 31, 2025 due to a decline in the balance of U.S. office loans Aozora 2027 +403.1 bn yen Total assets: 8.1 trillion yen Vs. March 31, 2025 1.1 tn yen Deposit, etc.* * Incl. NCDs, borrowed money (excl. borrowings from the BOJ) , and bonds Balance sheet summary Balance Sheet Earning assets* Total of loans and securities (excl. loans to the government, government bonds, etc.) +21.1 bn yen -64.6 bn yen Other Net assets Loans Securities Other (current assets, etc.) Mar. 31, 2025 4.5 tn yen Sep. 30, 2025 4.6 tn yen Mar. 31, 2028 plan 5.5 tn yen * Management accounting basis
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Real estate 27% Financial and insurance 15% Manufacturing 14% Other services 8% Leasing 7% Utilities (electricity, gas, heat supply and water) 5% Other (incl. loans to the government) 24% 1,021.2 1,105.6 1,201.0 1,324.9 463.1 448.7 433.1 450.4 219.8 303.2 306.2 381.6 390.2 379.3 532.7 334.9 415.7 361.1 431.0 433.5 2,510.1 2,598.1 2,904.2 2,925.4 - End-Mar. 2023 End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 Other Loans to the government LBO loans Real estate non- recourse loans Corporate loans Corporate loans grew as we expanded our domestic customer base, with the alliance with Daiwa Securities Group playing a significant role With regard to LBO loans, the Bank focused on large-scale transactions as well as on syndication arrangements The loan spread expanded as the outstanding balance of LBO loans with a higher spread increased (billion yen) Copyright © 2025 Aozora Bank, Ltd. 19 1 2 * 1 2 * The loan spread is on non-consolidated and management accounting basis and does not include NPLs. Domestic loans by industry 2,925.4 billion yen Domestic loan outstandings and loan spread * Loans —Domestic— Balance Sheet The outstanding balance of LBO and corporate loans, focused areas of the Strategic Investments Business, increased significantly 3 3 73 bps 83 bps 76 bps 84 bps 60 Loan spread 3 *
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5,224 4,820 4,472 4,457 2,813 2,589 2,043 1,692 2,230 2,316 2,192 2,162 10,268 9,726 8,709 8,313 - End-Mar. 2023 End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 Other Real estate non- recourse loans Corporate loans 95.5 96.7 96.7 96.5 97.1 99.3 99.7 99.7 99.5 100.0 88 90 92 94 96 98 100 23/9 23/12 24/3 24/6 24/9 24/12 25/3 25/6 25/9 Market Index Aozora (A) Corporate loans (B) Real estate non-recourse loans (C) Other (project finance, structured loans, etc.) (A) 41% (B) 20% (C) 25% North America 86% Europe 11% Asia 3% Oceania 0% Other 0% Overseas loans by region Overseas loan outstandings and loan spread * Copyright © 2025 Aozora Bank, Ltd. 20 1 2 * * * The loan spread is on non-consolidated and management accounting basis and does not include NPLs. The cost of forex forwards to which hedge accounting is not applied is included in funding costs. 1,371.1 1,473.1 1,302.2 1,237.6 35% 36% 31% 30% ¥133.54 ¥151.46 ¥149.53 ¥148.88 Foreign exchange rate (USD/JPY) Total yen-denominated loans (bn yen) Percentage of overseas loans 8,313 million dollars <Reference> Average bid price — North American corporate loans— * Source: PitchBook Data, Inc. Loans —Overseas— Balance Sheet 2 152 bps 148 bps 133 bps 128 bps 120 Loan spread 1 * (USD million) The credit quality of our corporate loan portfolio was maintained through ongoing flexible rebalancing of loans Overseas real estate non-recourse loan outstandings continued to decrease as the work-out of U.S. office loans progressed
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NPL ratio Doubtful credit Bankrupt or similar credit Special attention credit 12.5 15.4 15.7 118.5 76.2 50.0 0.0 0.3 91.7 66.1 3.17% 2.14% 1.56% -4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 0 End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 108.1 46.7 66.2 131.1 U.S office loans 21 Copyright © 2025 Aozora Bank, Ltd. Non-performing loans based on the FRA* (billion yen) *1 Including specific loan loss reserves, write-off of loans, gains/losses on disposition of loans, and recoveries of written-off receivables *2 Including general loan loss reserves and reserve for credit losses on off-balance- sheet instruments Credit-related expenses U.S. office loans * Total exposure basis Asset quality Balance Sheet Loan work-outs for NPLs are entering their final stage, with a focus on processing speed. Additional costs were incurred in 2Q due to the sale of NPLs as well as valuation reassessments (billion yen) Credit-related expenses -3.6 -1.1 -4.8 -6.0 -2.4 Specific loan loss reserves, etc. *1 -3.6 -6.0 -2.6 -8.6 -5.0 General loan loss reserves, etc. *2 0.0 4.8 -2.2 2.6 +2.5 <Reference> U.S. office loans -1.4 -1.1 -3.1 -4.2 -2.8 Other than U.S. office loans -2.1 -0.0 -1.7 -1.7 +0.4 Change B - A FY2025 FY2024 Interim A Interim B1Q 2Q * Financial Reconstruction Act (USD million) Balance Reserves Reserve ratio* Number of borrowers Balance Reserves Reserve ratio* Number of borrowers Balance Reserves Reserve ratio* Number of borrowers Balance Reserves Reserve ratio* Number of borrowers LTV: less than 90% 1,082 23 2.2% 24 762 16 2.2% 19 731 23 3.2% 18 620 27 4.4% 15 LTV: 90-100% 92 12 13.8% 2 232 31 13.5% 4 252 31 12.5% 5 254 32 12.9% 5 LTV: over 100% (NPLs) 719 320 44.5% 21 442 187 42.3% 14 329 130 39.6% 10 313 134 42.8% 9 Total 1,893 357 18.8% 47 1,437 235 16.3% 37 1,313 185 14.1% 33 1,189 194 16.3% 29 End-Sep. 2025 End-Mar. 2025 End-Jun. 2025 End-Dec. 2023
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Market risk (10 BPV) (billion yen) ALM securities operations +0.0 -1.0 -1.5 Incl. yen interest rate risk +0.0 -0.5 -0.6 Incl. U.S. dollar interest rate risk +0.0 -0.6 -0.8 End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 Duration of bonds JGBs 7 years 7 years 7 years Municipal bonds 4 years 5 years 5 years U.S. govt. bonds 5 years 4 years 4 years MBS 7 years 8 years 7 years End-Sep. 2025 End-Mar. 2024 End-Mar. 2025 Non-legacy assets 757.6 940.5 986.1 13.5 5.8 15.6 Domestic bonds 189.1 265.4 285.7 -2.7 -5.9 -6.3 Equities 31.1 29.9 34.3 14.7 12.5 17.1 Foreign bonds 196.5 281.4 303.8 -1.7 -1.2 1.6 Other 340.7 363.7 362.2 3.3 0.4 3.1 Legacy assets 428.9 414.8 415.6 -64.7 -56.6 -54.6 Bear funds 71.5 65.9 60.9 U.S. govt. bonds (USD) 1,150 1,150 1,150 -11.0 -9.5 -8.3 European govt. bonds (EUR) 350 315 315 -9.1 -6.4 -6.3 MBS (USD) 823 767 738 -30.7 -27.2 -26.3 Credit ETFs (investment grade bonds) (USD) 465 465 465 -13.6 -13.4 -13.5 Total -51.1 -50.7 -38.9 Unrealized gains/losses (billion yen) Book value (billion yen) Book value (million in original currency) End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 Unrealized gains/losses (billion yen) Book value (billion yen) Unrealized gains/losses (billion yen) 22 Legacy / non-legacy assets *1 Unrealized gains/losses including hedging instruments (de rivatives, bear funds) *2 Face or book value basis, excluding hedging instruments *1*2 Securities Balance Sheet *1 *1 * Non-consolidated basis * Copyright © 2025 Aozora Bank, Ltd. (billion yen) JGBs 52.5 128.5 141.7 +13.1 -2.1 -4.8 -5.4 -0.6 Municipal bonds 29.0 33.7 34.9 +1.2 -0.2 -0.7 -0.7 +0.0 107.5 103.1 108.9 +5.8 -0.4 -1.1 -1.0 +0.1 Equities 31.1 29.9 34.3 +4.4 14.7 12.5 17.1 +4.6 Foreign bonds 493.9 570.9 597.9 +26.9 -60.6 -49.6 -40.2 +9.3 Foreign govt. bonds 262.6 347.3 386.4 +39.1 -32.1 -24.6 -19.0 +5.5 MBS 99.2 91.7 89.0 -2.6 -28.6 -26.0 -23.7 +2.3 Other 132.0 131.9 122.3 -9.5 0.1 1.0 2.4 +1.4 Other securities 472.3 489.0 483.8 -5.2 -10.0 -10.7 -8.8 +1.9 ETFs 59.9 64.9 68.6 +3.7 -10.4 -10.5 -8.2 +2.3 Investments in limited partnerships 181.4 183.0 193.3 +10.2 1.0 2.0 1.1 -0.9 REITs 35.1 33.0 32.0 -1.0 3.5 2.6 2.6 +0.0 Investment trusts 153.9 162.5 146.2 -16.3 -4.7 -5.1 -4.4 +0.7 Other 41.7 45.4 43.5 -1.8 0.5 0.1 -0.0 -0.1 Total 1,186.5 1,355.4 1,401.8 +46.3 -58.7 -54.5 -39.1 +15.3 USD/JPY 151.46 149.53 148.88 -0.65 -51.1 -50.7 -38.9 +11.7 Unrealized gains/losses, incl. unrealized gains/losses on hedging instruments Corporate bonds / short-term corporate bonds Change B - A End-Mar. 2025 A Book value End-Mar. 2024 End-Sep. 2025 B End-Mar. 2025 C Unrealized gains/losses End-Sep. 2025 D Change D - C End-Mar. 2024 *
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BANK ™ 46% Traditional branches 12% Retail (BANK ™ / Traditional branches) 58% Financial institutions 26% Corporates / Public institutions 16% (billion yen) 6,421.0 6,276.1 6,506.2 +230.1 Deposits / NCDs 5,776.3 5,672.9 5,898.7 +225.8 Borrowed money 463.3 478.6 483.3 +4.7 Bonds 181.3 124.6 124.1 -0.4 5,808.9 5,331.8 5,366.8 +34.9 Retail deposits (B) 3,560.8 3,181.7 3,119.4 -62.2 2,066.7 2,025.4 2,123.1 +97.7 Bonds 181.3 124.6 124.1 -0.4 Retail funding ratio (B) / (A) 61% 60% 58% 66% 72% 73% Loan-to-deposit ratio Change B - A End-Mar. 2024 End-Sep. 2025 B Funding (consolidated basis) Funding (excl. GMO Aozora Net Bank) (A) End-Mar. 2025 A Corporate deposits Retail deposits declined compared to March 31, 2025 primarily due to significant redemptions of time deposits offered as part of prior promotional campaigns Corporate deposits were flexibly managed striking a balance between the target funding levels and associated costs. Our funding base expanded as a result of our focus on gaining new customers BANK TM deposit breakdown Ordinary deposits 75.1% 57.9% 58.8% +0.9% Time deposits 24.9% 42.1% 41.2% -0.9% Change B - A End-Mar. 2024 End-Sep. 2025 B End-Mar. 2025 A *1 Excluding borrowings from the BOJ *2 Management accounting basis *3 Incl. NCDs and borrowed money (excl. borrowings from t he BOJ) Copyright © 2025 Aozora Bank, Ltd. 23 1 *1 *2 2*3 By customer segment (excl. GMO Aozora Net Bank) *2 Funding Balance Sheet 1 2 Funding was managed balancing funding levels with costs (deposit rates) in response to asset growth
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729.2 2,011.6 3,185.5 Time deposits Liquid deposits Other 1,781.1 835.7 604.6 2,704.9 BOJ Current Account Securities Other Loans Yen currency balance sheet Investments 5,926.3 Funding 5,926.3 (billion yen) Foreign currency balance sheet (USD million) Investments 14,265 Funding 14,265 Estimated impact of higher yen interest rates on annual net interest income ➡ +2.8 billion yen Estimate assumptions: • An interest rate increase of 0.25% for all terms • No change in the balance sheet from September 30, 2025 • Pass-through to interest rates on deposits: 75% Copyright © 2025 Aozora Bank, Ltd. 24 Investments & funding structure / Impact of higher yen interest rates * (non-consolidated) Balance Sheet * Management accounting basis • Repo • Interbank • TRS • Currency swap • Long-term forex forward ■ Medium- to long-term funding: ■ Short-term funding: ■ Market operations: • Forex forward 758 5,329 8,178 180 2,972 2,637 7,259 1,217 Loans Securities Other Bonds and deposits Medium- to long-term funding Market operations Short-term funding Other Retail: 89% Corporate: 11% Retail: 42% Corporate: 58% Floating: 74% Fixed: 26%
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9.23% 10.72% 10.44% 3.00% 5.00% 7.00% 9.00% 11.00% 13.00% 4,645.6 4,553.8 4,672.1 429.0 488.2 487.8 0.0 5,000.0 End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 Risk-weighted assets Regulatory capital 25 Domestic standard (billion yen) Capital adequacy ratio CET1 ratio (Common Equity Tier 1 ratio) Capital adequacy ratio (preliminary basis) Capital adequacy ratio Aozora Bank is a domestic standard bank (minimum required capital adequacy ratio: 4%) subject to relevant regulations. However, we operate with the CET1 ratio (international standard) in mind as a means to pursue higher levels of risk and capital management, mainly in light of our large overseas loan exposure. Copyright © 2025 Aozora Bank, Ltd. (billion yen) Capital adequacy ratio 9.23% 10.72% 10.44% -0.28% Regulatory capital (A) - (B) 429.0 488.2 487.8 -0.4 Instruments and reserves (A) 467.5 529.7 530.7 +1.0 Shareholders' equity 413.1 475.1 482.6 +7.5 Other 54.4 54.5 48.1 -6.4 Regulatory adjustment (B) 38.5 41.4 42.9 +1.5 Risk-weighted assets 4,645.6 4,553.8 4,672.1 +118.3 Credit risk assets 4,273.1 4,248.9 4,361.8 +112.9 Market risk 238.9 177.6 169.5 -8.1 Operational risk 133.4 127.2 140.7 +13.5 End-Mar. 2024 End-Mar. 2025 A Change B - A End-Sep. 2025 B 7.1% 8.7% 8.9% 8% or higher 0 0 0 0 0 0 0 0 End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 FY2027 Plan
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Copyright © 2025 Aozora Bank, Ltd. 26 Group companies / consolidated, non-consolidated difference Group companies (billion yen) A: Non-consolidated net income 12.9 B: Profit attributable to owners of parent 13.6 B - A (a + b) Difference 0.6 Breakdown of the difference a: Consolidated subsidiaries/equity-method affiliates 2.7 Share of Earnings *1 Net Revenue Net Income GMO Aozora Net Bank, Ltd. 50.0% *2 6.1 0.1 Aozora Loan Services Co., Ltd. 67.6% 2.6 0.1 Aozora Securities Co., Ltd. 100.0% 0.1 -0.3 Aozora Regional Consulting Co., Ltd. 100.0% 0.0 0.0 Aozora Investment Management Co., Ltd. 100.0% 1.1 0.4 Aozora Real Estate Investment Advisors Co., Ltd. 100.0% 0.0 0.0 ABN Advisors Co., Ltd. 100.0% 0.1 -0.0 Aozora Corporate Investment Co., Ltd. 100.0% 0.4 0.1 Aozora Asia Pacific Limited 100.0% 0.1 0.0 Aozora Europe Limited 100.0% 0.4 0.1 Aozora North America, Inc. 100.0% 2.2 1.1 Other - 0.7 -0.0 Orient Commercial Joint Stock Bank 15.0% - 1.0 *3 b Consolidation adjustments -2.0 - -0.0 Other - -1.9 *4 *1 Percentage of profit and loss attributable to owners of parent *2 Voting rights ratio is 85.1% *3 Revenue contribution from equity method investments *4 Including a consolidation adjustment associated with dividends received from group companies Profit/loss attributable to non-controlling interests (GMO Aozora Net Bank, Ltd.)
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Copyright © 2025 Aozora Bank, Ltd. 27 03 Progress on the Mid-term Plan “Aozora 2027” (data updates)
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0 Funding* Loans* -200 GMO Aozora Net Bank Customer Relations Market & International Business Strategic Investments Impact: +10 billion yen (business profit) GMO Aozora Net Bank’s profit contribution Aozora 2027 —Changes in the external environment and initiatives for sustainable growth— Copyright © 2025 Aozora Bank, Ltd. 28 91.4 103.0 50.9 85.6 120 bn yen (approx.) January 2016– Negative Interest Rate Policy (NIRP) 2.5 3.2 Net revenue 3.8 3.8 3.3 5.1 5.8 5.3 June, 2015 Full repayment of public funds (tn yen) (tn yen) July 2018 Launch of GMO Aozora Net Bank Alliance with Daiwa Securities Group 4.7 tn yen (approx.) 6.2 tn yen (approx.) FY2015 FY2021 FY2023 FY2024 FY2027 Plan * Excluding GMO Aozora Net Bank’s deposits and loans Net revenue by business segment, loans and deposits FY2022 Lifting of NIRP 59.5 June 2015– Corporate governance code application Practice of corporate governance reform Growth of Strategic Investments Business Achieving and expanding profitability Preparation of internet bank 3.6 5.6 (bn yen) Contribute to the development of society through the creation of new value-added financial services Management Philosophy FY2025 Interim 3.8 5.3 95.0 52.1 (forecast) Business units
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Strategic Investments 56% Market & International 39% Customer Relations 2% GMO Aozora Net Bank 2% Other 1% Strategic Investments 50% Market & International 44% Customer Relations 4% GMO Aozora Net Bank 2% Aozora 2027 —Business strategy— Copyright © 2025 Aozora Bank, Ltd. 29 LBO & environmental finance Real estate finance Business recovery finance Venture debt Equity investments with a primary focus on engagement Strategic Investments Unit Domestic corporate business Market & International Business Unit ALM & securities Oversea corporate loans (North America & Europe) Overseas real estate non-resource loans (North America) GMO Aozora Net Bank Customers Relations Unit Deposits Asset securitization business Wealth management business for retail customers Strategic investments Orient Commercial Joint Stock Bank (OCB) (Vietnam) Financial institution network FY2024 FY2027 Plan Capital allocation Aozora consolidated its business groups into three units, with the focused allocation of managerial resources to the Strategic Investments Unit M&A / business succession advisory services Taken from the Mid-term Plan
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Business-related profit 27.7 bn yen 20.9 bn yen 36.0 b n yen Business-related profit ROE 13.2% 20.1% 14% Headcount 570 ‐ FY2024 FY2025 Interim FY2027 Plan Earning assets plan Business-related profit and resources Copyright © 2025 Aozora Bank, Ltd. 30 Basic Strategy I • Enhance customer base by leveraging the alliance with Daiwa Securities Group and grow balance sheet by making investments/loans to domestic companies and projects Basic Strategy II • Strengthen asset securitization business, including syndication of LBO and environmental finance, leveraging our regional financial institution network Basic Strategy III • Improve sales efficiency by strengthening sales representatives training and flexibly reallocating capital and human resources Progress in 1H The number of transactions and origination amount of LBO finance grew. Also promoted asset securitization business, including distribution to regional financial institutions The number of new customers referred by Daiwa Securities Group increased, representing 37% of all new customers. The outstanding balances of corporate and other loans also expanded accordingly (see pages 11, 12 and 31) (trillion yen) 1.1 1.2 1.3 0.3 0.4 0.6 1.0 1.0 1.7 0.0 1.0 2.0 3.0 End-Mar. 2025 End-Sep. 2025 End-Mar. 2028 Plan Other (environment, real estate, etc. ） LBO finance Corporate loans 2.6 3.6 2.8 *1 Annualized basis *2 Balances for the Acquisition & Structured Finance Group (incl. non-LBO finance) *3 Balances for the Corporate Business Group * 2 *3 *1 Strategic Investments Unit
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3 3 6 6 8 6 4 5 7 5 2 1 2 3 1 0 5 10 15 20 25 FY2021 FY2022 FY2023 FY2024 FY2025 Interim Over 50 bn yen 10-50 bn yen Less than 10 bn yen 0 10 20 30 40 50 60 70 80 90 100 FY2023 FY2024 FY2025 Interim Strategic Investments Unit —LBO finance and domestic corporate business— Copyright © 2025 Aozora Bank, Ltd. 31 • The LBO market expanded as domestic companies increased corporate actions such as M&A. The number of domestic TOB is expected to almost double in FY2025 compared to five years ago • The number and amount of loans also expanded due to an increase in large-sized financing transactions Number of transactions arranged by Aozora Bank • Participated since the market’s dawn in the early 2000s. Aozora has experienced professionals from front to back office roles in place • Built relations with PE funds. Has a top-class domestic market share in the number of large-sized transaction arrangements. Arranged 14 transactions in 1H of FY2025 • Improved capital efficiency by advancing asset securitization through leveraging our wide-ranging financial institution network LBO finance Domestic corporate business (corporate loans, venture debt, equity investments with a primary focus on engagement, etc. ） • An increasing number of companies explored an optimal funding structure, including capital, on the back of higher domestic interest rates and business structural changes • The number of customers increased (by 7% year-on-year), with 37% of new customers referred by Daiwa Securities Group. Loan outstandings, mainly to customers with high credit quality, also increased • Provided large-lot venture debt financing to a start-up as the first transaction of the fund jointly managed by the DBJ Group • With regard to equity investments with a primary focus on engagement, continued dialogue mainly with leading niche companies to support enhancing their corporate value Number of new customers Customers referred by Daiwa Securities Group: 37% 11 8 13 16 14 Total loans Environment Progress Environment Progress
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Business-related profit 7.5 bn yen 5.1 bn yen 19.0 bn yen Business-related profit ROE 4.6% 5.6% 10% Headcount 220 ‐ FY2024 FY2025 Interim FY2027 Plan 0 End-Mar. 2025 End-Sep. 2025 End-Mar. 2028 Plan 0 End-Mar. 2025 End-Sep. 2025 End-Mar. 2028 Plan Overseas corporate loans outstanding (USD million) U.S. office loans outstanding (USD million) Market & International Business Unit Copyright © 2025 Aozora Bank, Ltd. 32 Basic Strategy II • Maintain portfolio quality and generate stable income through selective origination and flexible replacement of quality loans Basic Strategy I • Rebuild a balanced portfolio of securities in foreign currency and yen by responding flexibly to changing conditions in accordance with our risk appetite policy Basic Strategy III • Actively promote workout of U.S. office loans which are classified as legacy assets Business-related profit and resources Progress in 1H Advanced restructuring of the securities portfolio while carefully increasing the risk level in line with the risk appetite policy (see page 22) Maintained the quality of our overseas corporate loan portfolio through flexible rebalancing of assets (see page 20) Made progress on the work-out of U.S. office loans (see page 21) 1,437 1,189 4,472 4,457 ALM/Securities portfolio International business Overseas RE finance * Annualized basis *
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0 End-Mar. 2025 End-Sep. 2025 End-Mar. 2028 Plan 0 End-Mar. 2025 End-Sep. 2025 End-Mar. 2028 Plan Sale by RFIs Sale by Aozora Business-related profit 1.4 bn yen 0.4 bn yen 2.5 bn y en FI business -0.8 bn yen 0.6 bn yen 0.5 bn yen Retail business 2.3 bn yen -0.2 bn yen 2.0 bn yen Headcount 380 ‐ FY2024 FY2025 Interim FY2027 Plan 1m (approx.) 790k 800k 469.7 541.7 Customer Relations Unit Copyright © 2025 Aozora Bank, Ltd. 33 Basic Strategy I • Further strengthen the asset management business for retail customers by shifting from a product sales-oriented approach through introducing Daiwa Securities’ fund wraps and expanding sales of investment trusts through RFIs Basic Strategy II • Expand both the number and balance of retail deposit accounts by enhancing services based on competitive interest rates and a new BANK TM concept (“Simple,” “Smart,” “Aozora’s BANK TM , the deposit of choice”) Basic Strategy III • Provide new investment opportunities and services, including structured finance, to RFIs AUM of public investment trusts for retail investors offered by Aozora Investment Management Number of retail deposit accounts (non-consolidated) (billion yen) Business-related profit and resources Progress in 1H Began the sale of Daiwa’s fund wraps in October. Reached the planned AUM for this fiscal year in just one month (see page 5) Offered BANK TM customers competitive interest rates on ordinary deposits and new time deposits. Also enhanced services such as increasing the number of bank transfers with free fees Established the ALM Solutions Division in July. Strengthened distribution capabilities to financial institution customers, mainly in structured finance Retail business FI business Retail business FI business
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0.0 FY2021 FY2025 Interim FY2027 Plan Other Net interest income Fee income, etc. 293.5 1,141.0 0.0 200.0 400.0 600.0 800.0 1,000.0 1,200.0 1,400.0 1,600.0 End-Mar. 2022 End-Sep. 2025 End-Mar. 2028 Plan 39k 214k 0 200,000 End-Mar. 2022 End-Sep. 2025 End-Mar. 2028 Plan GMO Aozora Net Bank Copyright © 2025 Aozora Bank, Ltd. 34 Basic Strategy I • No. 1 Bank among Small Businesses and Start-ups Aim to improve earnings from active accounts by increasing the number of corporate accounts with Aozora as the main settlement bank Basic Strategy II • No. 1 Embedded Finance Services (BaaS) Accelerate a BaaS strategy to establish the second growth driver Basic Strategy III • No. 1 Tech-first Banking Services Work to increase the percentage of engineers and improve AI development capabilities as a means to enhance systems development capabilities Number of corporate accounts Deposit balances (billion yen) Net revenue breakdown Progress in 1H Fee income grew as planned due to an increase in the number of corporate accounts Provided BaaS to 01 Bank, Ltd., a wholly-owned subsidiary of Senshu Ikeda Holdings, Inc., and RAKSUL BANK INC.
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Funding strategy Copyright © 2025 Aozora Bank, Ltd. 35 FY2027 Plan Assets FY2024 Other 2.0 trillion yen 3.1 trillion yen Assets Funding plan* Retail deposits Corporate deposits • Increase more stable deposits by offering attractive products • Increase the number of retail deposit accounts and balances, mainly through the BANK TM internet banking service • Expand the number of corporate accounts by leveraging the alliance with Daiwa Securities Group * Excluding GMO Aozora Net Bank’s deposit balance Further stabilize funding base by attracting deposits from a diversified mix of retail and corporate customers Expand the number of new accounts by providing attractive product design, fee structure, customer service, ATMs, apps, and online service based on the concept of “Simple,” “Smart,” and “ BANK TM at Aozora , the deposit of choice” Complete systems and app development by the end of FY2027, and provide more advanced BANK TM services 3.7 trillion yen 2.5 trillion yen Other Other 2.1 trillion yen 3.1 trillion yen Assets FY2025 Interim
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Aozora’s Sustainability Targets Copyright © 2025 Aozora Bank, Ltd. Progress 36 * Non-consolidated basis Results (September 30, 2025) Target FY2025 FY2030 FY2040 FY2050 Target 1: Contribution to the future of economy and society Growth support for venture companies Number of venture-related investments Total: 148 Total: 130 GMO Aozora Net Bank Number of account openings by small businesses and start-ups Almost in line with plan Total: 200k Contributing to regional communities through business recovery Number of business recovery fund-based transactions Total: 136 Total: 150 Investments designed to support structural transformation Number of equity investment transactions with a primary focus on engagement* Total: 141 Total: 130 Retail customer platform Number of business and asset succession consulting contracts Total: 1,089 Total: 1,000 (Note) “Total” in the Results columns refers to a total from April 2021. As we have achieved multiple sustainability targets, we plan to renew them in FY2026
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Aozora’s Sustainability Targets Copyright © 2025 Aozora Bank, Ltd. 37 *1 Non-consolidated basis *2 Managers: Total of general managers and group manag ers *3 Deputy managers: One level below managers *4 Percentage of eligible male employees taking childcare leave = (a) Number of male employees who took childcare leave during FY2023 / (b) Number of male employees with children born during FY2023. Please note that the aforementioned (a) inclu des employees who have children born in or before FY2023 but have newly taken childcare leave in FY2024. As a result, the percentage could exceed 100%. *5 Non-Japanese managers: Include those working in domesti c/overseas subsidiaries excluding GMO Aozora Net Bank *6 “Percentage of female managers / deputy managers,” “Percentage of eligible male employees taking childcare leave,” and “Percentage of mid-career managers” are compiled on a non-consolidated basis due to the unavailability of consolidated data. *7 Results as of March 31, 2025 Target 3: Enhancement of the value of human capital Percentage of female managers* 2, 6 / deputy managers* 3, 6 14.9% / 40.7%* 7 20% / 40% (by March 31, 2028) Percentage of eligible male employees taking childcare leave* 4, 6 105%* 7 100% (by March 31, 2028) Percentage of non-Japanese managers* 5 3.2%*7 3% (by March 31, 2028) Percentage of mid-career managers* 6 58.3%* 7 40% (by March 31, 2028) Results (September 30, 2025) Target FY2025 FY2030 FY2040 FY2050 Target 2: Response to environmental issues Sustainable financing amount Total: Approx. 910 billion yen Total: 1 trillion yen (by FY2027) └ Including environmental financing Total: Approx. 710 billion yen Total: 700 billion yen Achieving carbon neutrality GHG emissions as a business entity (Scopes 1 & 2, compared to FY2020) 1,890 t-CO2* 7 (down 70% from FY2020) Net zero GHG emissions in investment and loan portfolio (Scope 3: category 15) Please refer to page 62 of the Annual Report 2025. Net zero Balance of project financing for coal-fired power plant* 1 Balance: 14.5 billion yen Net zero
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Copyright © 2025 Aozora Bank, Ltd. 38 04 Capital Policy
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Capital policy Copyright © 2025 Aozora Bank, Ltd. 39 Deploying capital for steady growth based on a risk appetite framework Stable shareholder returns Maintaining financial strength 1. Shareholder returns through dividends based on business performance 2. Target dividend payout ratio of approximately 50% 1. Focused capital allocation to Strategic Investments Business 2. Continued investment in human capital 3. Flexibly deploy or divest existing assets related to strategic investments in order to effectively utilize capital Steadily capture growth opportunities by focusing on the Bank’s Strategic Investments Business Achieve ROE above our cost of capital and increase corporate value leading to a P/B ratio over 1x Implement a capital policy that balances “ deploying capital for steady growth based on a risk appetite framework ,” “ maintaining financial strength ,” and “ stable shareholder returns ” 1. Maintain a CET1 ratio in the 8% range 2. Aim for 9% or higher over the long term Taken from the Mid-term Plan
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Initiatives to enhance corporate value (logic tree) Copyright © 2025 Aozora Bank, Ltd. 40 Enhancement of corporate value Aiming for sustainable enhancement of corporate value through improvement in ROE and reduction of cost of capital Reduction of cost of equity Increase in expected growth rate Risk reduction Improvement in ROE Financial leverage control Improvement in RORA • Risk Appetite: Enhance capital base and achieve corporate growth through efficient management and utilization of managerial resources and sound risk-taking. • Human Capital: Systematically develop human resources capable of creating added-value. • Practice materiality-based sustainability management. Basic policy • Contribute to the development of society by creating added-value through business • Positively address environmental issues • Human resources strategy to enhance corporate value Sustainability Management • Review RAF that sets direction for risk management and resources allocation • Established “Risk Governance Committee” to enhance RAF management Resilience management • Growth support for GANB • Developing new growth areas, creating added-value through capital utilization Strategic investment • Improve cost efficiency through business group consolidation Cost control • Focused allocation of capital to Strategic Investments Business • Efficient management of capital by promoting asset securitization business (leveraging our financial institution network) Optimal allocation of capital • Promote growth of Strategic Investments Business and GANB • Strengthen collaboration with Daiwa Securities Group • Offer attractive deposit and investment products to retail and corporate customers Enhancing profitability • Target dividend payout ratio of approximately 50% Stable shareholder returns Measures Taken from the Mid-term Plan
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Copyright © 2025 Aozora Bank, Ltd. 41 05 Appendix
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Corporate governance (as of September 30, 2025) 42 General Meeting of Shareholders Nomination and Remuneration Committee CEO Management Committee Internal Audit Division Internal Outside Audit and Supervisory Board (ASB) Members ASB (2 outside ASB Members out of 3) Board of Directors Risk Governance Committee (5 outside directors* out of 9) (2 outside directors out of 3) (2 outside directors out of 3) Ratio of female directors Ratio of independent outside directors 1 of 9 members 11.1 % 5* of 9 members 55.6 % Ratio of female executive officers 4 of 26 members 15.4 % * 4 out of 5 outside directors are independent. Copyright © 2025 Aozora Bank, Ltd.
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Management oversight (as of September 30, 2025) 43 Internal Directors* Standing Audit & Supervisory Board Member* Outside Directors* Outside Audit & Supervisory Board Members* Mr. Koji Yamakoshi Director and Chairman, Executive Officer Mr. Hideto Oomi Representative Director, President and CEO Mr. Masayoshi Ohara Representative Director, Deputy President and Executive Officer Mr. Takashi Kato Director, Senior Managing Executive Officer and CFO Mr. Satoshi Hashiguchi Standing ASB Member Mr. Toraki Inoue Former Partner, Asahi & Co. (currently KPMG AZSA LLC) Mr. Junichi Maeda Former Representative Senior Managing Director, The Hokkoku Bank, Ltd. Ms. Sakie Tachibana Fukushima President and Representative Director, G&S Global Advisors Inc. Mr. Hideyuki Takahashi Former Director and Deputy President, Group CFO, Mizuho Financial Group, Inc. Mr. Hideaki Saito President and CEO, Japan Systems Co., Ltd. Mr. Koichi Tadano Chairman and Representative Director, Tadano Ltd. Mr. Hiromasa Kawashima Senior Managing Director, Daiwa Securities Group Inc. Name Expertise of Directors and ASB Board Members Oversight Functions Aozora’s Focus Areas Corporate Management Financial Accounting Legal, Compliance/ Risk Management Banking and Finance Global Affairs Human Capital IT/Digital Directors Internal Directors Koji Yamakoshi ● ● ● Hideto Oomi ● ● ● ● Masayoshi Ohara ● ● ● ● ● Takashi Kato ● ● ● Outside Directors Sakie Tachibana Fukushima ● ● ● Hideyuki Takahashi ● ● ● ● ● Hideaki Saito ● ● ● ● Koichi Tadano ● ● Hiromasa Kawashima ● ● ● ASB Members Standing ASB Member Satoshi Hashiguchi ● ● ● Outside ASB Members Toraki Inoue ● ● ● ● Junichi Maeda ● ● ● ● * Four of the outside directors as well as the outside Aud it & Supervisory Board members satisfy the requirements for independence set forth by the Tokyo Stock Exchange an d Aozora’s “Independence Criteria for Outside Directors and Outside Audit & Supervisory Board Members” and are designated as independent. Mr. Kawashima has not been designated as independent because he is an officer of Daiwa Securities Group Inc., which is a major shareholder. Copyright © 2025 Aozora Bank, Ltd.
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0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 End-Mar. 2021 End-Mar. 2022 End-Mar. 2023 End-Mar. 2024 End-Mar. 2025 End-Sep. 2025 Retail 41% Daiwa Securities Group 24% Domestic financial institutions 19% Overseas 11% Corporates, etc. 5% (people) 115k Shareholder composition (as of September 30, 2025) Copyright © 2025 Aozora Bank, Ltd. 44 Shareholder composition* Number of Aozora Bank’s retail investors 92k 91k 128k 140k 119k * Excluding treasury stock
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Aozora at a glance Copyright © 2025 Aozora Bank, Ltd. 45 Profile (as of September 30, 2025) History Headquarters: 6-1-1 Kojimachi, Chiyoda-ku, Tokyo Total Assets: 8,165.5 billion yen Credit Ratings: BBB / A- / A (S&P / R&I / JCR) Office Network: - Domestic: 15 locations - Overseas: 3 representative offices and 3 overseas subsidiaries (New York, London, Shanghai, Singapore, Hong Kong) Major Subsidiaries: GMO Aozora Net Bank, Ltd. Aozora Loan Services Co., Ltd. Aozora Securities Co., Ltd. Aozora Regional Consulting Co., Ltd. Aozora Investment Management Co., Ltd. Aozora Real Estate Investment Advisors Co., Ltd. ABN Advisors Co., Ltd. Aozora Corporate Investment Co., Ltd. Aozora Europe Limited Aozora North America, Inc. Full-time Employees: 2,518 (consolidated basis) 1957: Established as The Nippon Fudosan Bank, Limited 1977: Changed name to The Nippon Credit Bank, Ltd. 1998: Temporarily nationalized 2000: Re-privatized 2001: Changed name to Aozora Bank, Ltd. 2006: Listed on the First Section of the Tokyo Stock Exchange 2012: Announced Comprehensive Recapitalization Plan 2015: Early and full repayment of public funds 2017: Headquarters relocated to Chiyoda-ku, Kojimachi 2022: Listed on the Prime Market segment of the Tokyo Stock Exchange following the restructuring of its market segments 2024: Formed a capital and business alliance with Daiwa Securities Group Inc.
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Copyright © 2025 Aozora Bank, Ltd. 46 AOZORA BANK, LTD. Corporate Communication Division TEL: 03-6752-1218 Mail: azbk001@aozorabank.co.jp URL: https://www.aozorabank.co.jp Contact This presentation contains forward-looking statements regarding the Bank’s financial condition and results of operations. These forward-looking statements, which include the Bank’s views and assumptions with respect to future events, invol ve certain risks and uncertainties. Actual results may differ from forecasts due to changes in economic conditions and o ther factors including the effects of changes in general economi c conditions, changes in interest rates, stock markets and fore ign currency, and any ensuing decline in the value of ou r securities portfolio, incurrence of significant credit-related cost and the effectiveness of our operational, legal and other risk management policies