Management Greeting

I would like to take this opportunity to thank all of our stakeholders for their continued support.

In our FY2024 financial results, net revenue was 85.6 billion yen (102% of the forecast) and profit attributable to owners of parent was 20.5 billion yen (114% of the forecast), both of which exceeded the initial earnings forecasts. We would like to thank our stakeholders once again for their support, which has enabled us to achieve a V-shaped recovery from the previous fiscal year. Accordingly, we will pay a full-year dividend of 79 yen per share, an increase of 3 yen from our initial forecast.

FY2024 was a year of significant changes, marked by the normalization of domestic interest rates and increased M&A activities driven by corporate governance reforms. The Aozora Bank Group ('Aozora') seized upon these changes as opportunities, achieving revenue growth through increased domestic lending and the promotion of its Strategic Investments Business focusing on LBO finance. The fact that GMO Aozora Net Bank became profitable for the first time and entered the phase of contributing to Aozora's earnings marked a crucial turning point in our growth strategy. The reduction in our exposure to U.S. office loans and the improvement in the foreign currency securities portfolio are also progressing as planned.

The year 2025 will mark the 10th anniversary of the Bank's full repayment of public funds. During this period, Aozora has expanded the M&A market with its customers and established itself as a major player through LBO financing and other structured finance. We have also actively cultivated new markets through the launch of GMO Aozora Net Bank and the creation of Japan's first venture debt fund.

This May, we announced our new Mid-term Plan “Aozora 2027,” where we aim to achieve sustainable growth by leveraging the tailwinds of the environmental changes in FY2024 under our strong risk governance based on our Risk Appetite Framework. Through focused allocation of management resources to the investment banking business, maximization of synergies from the capital and business alliance with Daiwa Securities Group, and the growth of GMO Aozora Net Bank, the Group will further enhance its overall competitiveness.

Aozora is committed to meeting every stakeholder's expectation by pursuing sustainable growth guided by its management philosophy of "contributing to the development of society through the creation of new value-added financial services.

We sincerely ask for your continued understanding and support for the Aozora Group.