FY2021 Interim

Financial Results

Investors Meeting

November 19, 2021

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Contents

1 FY2021 Interim Financial Results

P. 2

2 FY2021 Progress on Key Initiatives P. 28

3 Appendix

P. 40

(Note) Unless otherwise stated, all amounts stated in 1 billion yen have been rounded down to the nearest 0.1 billion yen.

In addition, "1Q" refers to the period from April to June, while "2Q" refers to the period from July to September.

1

Copyright © 2021 Aozora Bank, Ltd．All Rights Reserved.

1 FY2021 Interim Financial Results

Copyright © 2021 Aozora Bank, Ltd．All Rights Reserved.

2

Interim Financial Highlights

Interim results were strong both compared to the previous year and the full-year forecast.

Results for 2Q represented over 25% of the full-year forecast

Net revenue

Business profit

Profit attributable to owners of parent

52.4 billion yen

(7.3 billion yen increase year-on-year, progress rate: 54%)

25.7 billion yen

(6.6 billion yen increase year-on-year, progress rate: 60%)

19.4 billion yen

(4.3 billion yen increase year-on-year, progress rate: 65%)

Key points

  • Non-interestincome increased significantly compared to the previous year and was a major driver of net revenue growth
  • The Bank continued to promote its Strategic Investments Business. Strong earnings were generated mainly from buyout finance, private equity and GMO Aozora Net Bank
  • Business profit increased by 35% compared to the previous year in part due to contributions from gains associated with the Bank's equity method investment in Orient Commercial Joint Stock Bank
  • Credit-relatedexpenses for the interim period were a net reversal
  • Profit attributable to owners of parent represented progress of 65% of the full-year forecast and no significant gains/losses on stock transactions were recorded

Dividend for 2Q: 32 yen per common share (25% of the full-year dividend forecast of 128 yen)

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3

PL summary

  • Interim results were strong both compared to the previous year and the full-year forecast. Results for 2Q represented over 25% of the full-year forecast
  • Growth in non-interest income offset the slight year-on-year decline in net interest income due to a strong level of customer-related transactions
  • G&A expenses represented 49% of the full-year budget as the Bank continued its focus on cost control
  • Credit-relatedexpenses were a net reversal of 0.4 billion yen for the interim period. No significant gains/losses on stock transactions were recorded in the first half

FY2020

FY2021

Change B - A

FY2021

Interim

Apr. - Jun.

Jul. - Sep.

Interim

Amount

%

Full-year

Progress

(billion yen)

A

B

Forecast

Net revenue

45.0

26.7

25.6

52.4

+7.3

+16.4%

97.0

54%

Net interest income

25.5

11.8

12.8

24.6

-0.8

Non-interest income

19.5

14.9

12.8

27.7

+8.1

General & administrative expenses

-26.0

-13.8

-14.0

-27.9

-1.8

Gains/losses on equity

-

0.5

0.6

1.2

+1.2

method investments

Business profit

19.0

13.4

12.2

25.7

+6.6

+35.2%

42.5

60%

Credit-related expenses

-0.1

2.0

-1.5

0.4

+0.5

Gains/losses on stock transactions

1.1

0.0

0.0

0.0

-1.1

Ordinary profit

18.9

15.6

10.8

26.4

+7.5

+39.9%

42.5

62%

Extraordinary profit/loss

-0.0

-

-0.1

-0.1

-0.1

Profit before income taxes

18.9

15.6

10.6

26.3

+7.3

+38.9%

Taxes

-4.9

-4.4

-3.1

-7.6

-2.7

Gains/losses attributable to

1.1

0.3

0.4

0.8

-0.3

non-controlling interests

Profit attributable to owners of parent

15.1

11.5

7.8

19.4

+4.3

+28.5%

30.0

65%

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4

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Aozora Bank Ltd. published this content on 18 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 November 2021 03:11:05 UTC.