Medium-Term Management Plan

Third Medium-Term Management Plan (FY2016-FY2018)

Medium- to Long-Term Vision

The Shinsei Bank Group aims to become a banking group that is proactively sought out by customers, and strives to develop and provide groundbreaking financial services by providing the financial functions and services of the entire Shinsei Bank Group to its clients in a truly customer centric manner.

1.To be a financial innovator that provides innovative financial services made possible through the integration of its Group companies 2.To be a financial group that achieves outstanding productivity and efficiency byimplementing lean operations through ongoing improvements and reforms 3.To be a financial group which, in addition to rewarding its stakeholders, is unified by the core values born from the confidence, sense of fulfillment and thepride created through the achievement of the above

3rd MTMP: Overall Strategy

“Selection and Concentration” of Businesses / Creation of Value through Group Integration Growth Areas:Areas with high profit/growth expectations in which the Bank holds competitive advantages Stable Revenue Areas:Areas in which the Bank will stably and selectively engage in without being involved excessive competition Strategic Initiative Areas:Areas which are expected to deliver future growth and in which the Bank looks to create customer value through groundbreaking innovations Curtailment Areas:Areas in which the Shinsei Bank Group holds little expertise or the market is expected to shrink

3rd MTMP Overview: Group Integration ~ Creation of Business Synergies

Creation of new businesses beyond the current framework based on real customer needs

Business Plan: Strategic Mapping Businesses

This strategic mapping of businesses represents a preliminary objective for the reorganization of the business portfolio through “selection and concentration.”

Business Plan: Operating Assets

While having already undertaken the “selection and concentration” of businesses, going forward, the Bank will validate the effectiveness of its strategy and initiatives as well as flexibly reallocate management resources in accordance with performances versus plans, and the Bank will seek to proactively accumulate operating assets in the two growth areas and achieve a compound annual growth rate of 10% per annum. Regarding areas other than “growth areas,” we conservatively expect an annual average balance growth rate of 2% per annum.

Business Plan: Operating Assets

Business Plan: Financial Projections

The 3rd MTMP places an emphasis on achievability, does not assume the recording of one time gain factors, and instead with a focus on stable revenues, targets net income of JPY 64.0 billion in FY2018.

Business Plan: Financial Projections

Business Plan: Financial Targets

Regarding Financial Targets, the Bank will pursue stable revenues, and targets a Net income of 64 billion in FY2018. With a focus on group-wide operational efficiency, the Bank targets an expense to revenue ratio of between 50 and 60%.

Business Plan: Financial Targets

Presentation material and streaming of investors’ meeting

Click on the following link to read Past Medium-Term Management Plan.

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