Daiwa Securities Group (8601) Acquisition presentation summary

Transaction overview and strategic rationale

• Acquisition of 100% of ORIX Bank shares by Daiwa Next Bank for ¥370 billion, fully self-funded, with a future merger anticipated.

• Aims to sustainably expand stable revenue and improve ROE and EPS by strengthening the Wealth Management Division.

• Integration leverages OBK's lending/trust strengths and DNB's deposit-gathering power for enhanced client solutions and corporate value.

• Combined bank will have approx. ¥9 trillion in assets and ¥400 billion in equity, evolving into a full-service bank.

• Merger expected to create a virtuous cycle of deposit and loan growth, maximizing synergies.

Financial impact and synergy potential

• Synergy effects and OBK's results expected to significantly boost consolidated performance.

• Targeting deployment of ¥1.5 trillion in excess reserves and ¥2 trillion in new deposits over five years into loans and securities.

• Net interest income projected to improve by ¥35 billion, assuming a 1% margin.

• OBK's five-year average ordinary income is approx. ¥30 billion, net income approx. ¥20 billion.

• Amortization of goodwill from the acquisition is anticipated.

Capital management and regulatory considerations

• Regulatory capital ratios post-transaction: total capital ratio over 14%, CET1 over 12%, both down 5 points.

• Capital buffer will be maintained, with consideration for issuing perpetual subordinated bonds but no equity financing.

• Capital management policy remains focused on balancing financial soundness, growth investments, and shareholder returns.

• Stress buffer and regulatory requirements will be met even after the acquisition.