Mid-term Plan "Aozora 2027" (FY2025-27)

Aozora Bank, Ltd. has established its new Mid-term Plan, "Aozora 2027," covering the three-year period from FY2025 to FY2027.
The year 2025 marks the 10th anniversary of Aozora's full repayment of public funds. During this period, we have focused on initiatives including enhancement of our Strategic Investments Business and the launch of GMO Aozora Net Bank, to build a foundation for our future growth.
GMO Aozora Net Bank recently achieved profitability, and the collaboration with Daiwa Securities Group through capital and business alliance is also progressing favorably. Changes in the market environment, such as the normalization of domestic interest rates and increased M&A activity, have also presented opportunities for Aozora, which we are leveraging for business expansion.
We recognize that these environmental changes are crucial turning points in our future growth strategy.
The new Mid-term Plan "Aozora 2027" aims to realize sustainable growth by capitalizing on the strong foundation that we've established.

The three-year period for the new Mid-term Plan "Aozora 2027" is expected to be a critical phase in which we aim to return to a growth trajectory by taking advantage of these environmental changes as well as building on past accomplishments.
We intend to achieve sustainable growth driven by the expansion of our Strategic Investments Business primarily in Japan, maximizing synergies from our capital and business alliance with Daiwa Securities Group, as well as the growth of GMO Aozora Net Bank.
With regard to capital policy, we will steadily capture growth opportunities by focusing on our Strategic Investments Business to achieve an ROE above our cost of capital and increase corporate value leading to a P/B ratio over 1x.
We will also 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. Total of loans and securities (excluding loans to the government, government bonds, etc.)
2. Business profit basis