Change : Briefing Materials Capital and Business Alliance with SBI Holdings, Inc.

Appendix

Briefing Materials

Capital and Business Alliance with SBI Holdings, Inc.

CHANGE Inc.

March 4, 2022

1. Aim of the Capital and Business Alliance: To Advance Regional Creation Businesses

The aim of the capital and business alliance is that CHANGE and SBI Group will become a sole leader that can achieve regional creation by leveraging each party's strengths and through the formula of "Finance × Local Governments × Support for Revitalization for Regional Companies."

Three elements to make regional creation successful Specific measures in the capital and business alliance

Regional financial institutions

To recover and enhance local finance

Collaboration in regional creation business

More commitment to

energy business

Local government

To make public services

sustainable

Regional companies

To create businesses based on the strengths of a region

and ESG activities

SIer becoming a DX leader

in the region through financial and other supports of SBI funds*

Fund for succeeding small and medium sized regional companies

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2.1 Collaboration in Regional Creation Business

Mr. Hiroshi Fukudome (our CEO) is scheduled to be appointed as a representative director of SBI Regional Revitalization Services Co., Ltd.

CHANGE and SBI Group will urgently expand into areas of solving social issues in the region, such as community development, environment, and disaster prevention.

Existing regional revitalization business (systems field)

Expansion of businesses after the capital and business alliance

開発会社

Creating next-generation banking system for regional financial institutions

Community

Development

Field

+

Environment

Field

Disaster

Prevention

Field

Smart city business, regional and facility revitalization business

Providing infrastructure to enhance regional value and real estate value

Resource recycling system business for protecting global environment and reducing carbon dioxide

Recycling of waste through utilizing- rontiertec plants

Resilience business using electricity- storage systems in disaster-prevention sites

Strengthening regional disaster prevention functions from both the hardware and software aspects

Building a bank's accounting system in the cloud and monetizing their ussage as a revenue model

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2.2 Enhancing Energy Business and ESG Activities

CHANGE and SBI Group will strengthen activities for ESG by further expanding our existing success models based on the belief that realizing local recycling and local consumption regarding renewable energy shall be the core of regional creation.

CHANGE and SBI's key areas (success models) and image of future efforts

Development	Public		Industrial	Hot spring		SBI ENERGY Co., Ltd.: Solar sharing
site	Farmland	Ocean
	land	park	resort	• Introduction of renewable energy on
Technology
						abandoned cultivated lands to promote
Solar power						farming business
					• Ability of mining local needs through
						• collaboration with regional banks
Wind power						✖
Geothermal
energy						CHANGE: Smart city and microgrid
						• Promotion of decarbonization by the effective
Biomass						use of public lands by local governments
Small						• Network with local governments and
					IT utilization capabilities
Hydro plant
					(Energy management system)

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2.3 Reorganizing SIer through SBI Regional Business Succession Fund

The SBI Regional Business Succession Fund will support the business succession of SIer (system integrators) in order to foster DX leaders in the region, which is expected to lead to great industry reorganization in the future.

Solving business succession issues in the SI industry and strengthening our businesses

Strengths of the SBI Regional Business Succession Fund

• Creating success cases for of business succession in industries, such as dispensing pharmacies and rice wholesalers
• Ability to source business succession projects through collaboration with regional banks and its investees

Support

Our strategy (M&A and industry reorganization)

• Securing local DX human resources through M&A is an urgent task.
• Restructuring industries by our capabilities of leveraging human resource development and business development

SBI Regional Business

Succession Fund

Equity participation

SIer

SIer

SIer ・・・

SBI Regional Business Succession Fund will invest in local SIer suffering from business succession through introduction from regional banks

CHANGE will support the efficient management of businesses, such as human resource development and provision of back-office functions, by buying them and making them our subsidiaries.

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