INTEGRATED REPORT 2021 For the fiscal year ended March 31, 2021

Digest Version Thoughts of the Shinsei Group [What]

Management Principles

The Shinsei Bank Group has established the following Management Principles and is working on a day-by-day basis toward their attainment.

To become a banking group that is To become a banking group that To become a banking group that sought out by customers, values diverse talents and cultures strives for highly transparent and contributes to the development and is constantly taking on management and values that is of both domestic and international new challenges presented by change, trusted by all stakeholders industrial economies, based on its experiences including customers, investors, while maintaining stable profitability. and history. and employees.

Medium-Term Strategies: Redesigning Finance

The Shinsei Bank Group has been pursuing its "Redesigning Finance" initiative with its stakeholders by identifying and responding to the underserved needs of society in this wave of change. The major waves of DX (Digital Transformation) and SX (Sustainability Transformation) are accelerating our efforts in this regard.

Design Concept The font color, which has an alternating blue and gray design concept, expresses the value co-creation business model that brings together services of not only the Shinsei Bank Group but also other companies. The object in human form in the center of the word “finance” symbolizes our stance connecting people with finance to provide valuable new financial services.

1 Thoughts of the Shinsei Bank Group [How]

A variety of combinations for creating value for the future.

What the Shinsei Bank Group has valued is to continue to be a unique player with presence that cannot be found elsewhere as a niche player. We have collaborated with companies outside the financial industry to create new services by combining diverse value without being bound by existing concepts in the banking and finance industries and the boundaries of our own Group. Under the theme of "Redesigning Finance," Medium-Term Strategies is pursuing growth through value co-creation as one of its basic strategies. We are working to integrate this business with other services. Going forward, the Shinsei Bank Group will continue to quickly capture the needs of consumers who are not yet attended to by anyone and accelerate innovation beyond common sense.

2 What the Shinsei Bank Group Wishes to Be [CEO Message] (Full text is on P16-20 of Integrated Report 2021.)

Good business opportunities in the future will only be in the context of sustainability

We believe that good business opportunities in the future will only be within the context of sustainability, and also believe that the social role and significance of our niche, the uniqueness of the Shinsei Bank Group, should play a critical role by focusing on needs that are not met by existing products and services as new business opportunities ahead of anyone and bringing them to the world.

Only when diversity and inclusion is incorporated into the DNA of the organization, we will realize the sustainability management Hideyuki Kudo President and Chief Executive Officer

The inclusion that employees of the Shinsei Bank Group aim for is to accept What are the Intangible Sources of Competitiveness owners of values and ideas that differ from themselves and participate in the (Value of Intangible Assets) of the Shinsei Bank Group? development of new initiatives that emerge from proactive dialogues. I believe ~The Future of Sustainability Management that this kind of diversity and inclusion is not just a topic for external appeal, but only when it is incorporated into the DNA of the organization, and will realize the There is a growing demand for corporate management to contribute to "the sustainability management that the Shinsei Bank Group is aiming for. realization of a sustainable society from a medium- to long-term perspective," and to improve sustainable profitability through such contributions. In light of The Shinsei Bank Group aims to become a corporate this, this Integrated Report has been prepared focusing on the theme of group that realizes Sustainability Transformation "Sources of the Shinsei Bank Group's Competitiveness (Value of Intangible ahead of anyone else Assets)" as the basis for realizing this. The points are: I believe that the era in which "sustainability initiatives = management strategy itself" will soon come. The Shinsei Bank Group aims to become a corporate group ① Establishment of a management vector for the Shinsei Bank that realizes Sustainability Transformation (SX) ahead of anyone else. Group to provide unique value to society and the economy Our stakeholders, together with the Shinsei Bank Group, will also strive to realize ② Strengthen organizational capabilities and capacity to drive a sustainable society. We ask for your continued support and cooperation in management towards that vector these endeavors.

3 Current Status of the Shinsei Bank Group [Shinsei Bank Group’s Products and Services]

Unique products and services Individual Business The Shinsei Bank Group is a hybrid comprehensive financial group The Individual Business is composed of the retail banking business that is engaged in both bank and nonbank functions. and consumer finance, which provides products and services such as unsecured loans, credit cards, shopping credit and payment Taking into account the mega trends of society, we aim to services for individual customers. leverage the strengths of a hybrid financial group and combine the financial functions of the Group to provide products and services Shopping Credit that respond to customers who are unsatisfied with traditional Credit Cards financial and nonfinancial services. Payment

Leasing

* Profit share from bank and nonbank businesses Unsecured Loans

Nonbank Businesses Project Finance ■Shinsei Financial ■APLUS FINANCIAL ■Showa Leasing Housing Loans ■ Bank Businesses

Mutual Funds, Real Estate Finance Insurance

Products and Services for Corporate and Financial Institutions Bank Businesses JPY / FCY Deposits, Structured Deposits ¥11.0 bn / 25% Nonbank Businesses Private Equity ¥32.8 bn / 75% The Institutional Business is composed of the corporate business, structured finance business, private equity investment and FY2020 Actual business succession financing business, leasing business, as well * Ordinary Business Profit as delivering market services that provide market solutions for after Net Credit Costs foreign exchange and interest rate derivatives, among others. Glossary Subsidiaries and Affiliated Companies & Institutional Business URL https://shinseibank.com/corporate/en/about/group/

4 Current Status of the Shinsei Bank Group [At a Glance]

Individual Business Institutional Business Total Revenue Ordinary Business Profit after Net Credit Costs Total Revenue Ordinary Business Profit after Net Credit Costs

70% 66% 30% 40%

（Billions of yen） ¥154.8 billion （Billions of yen） （Billions of yen） （Billions of yen） 160 30 ¥29.1 billion 80 30 ¥66.5 billion 120 60 20 20 ¥17.5 billion 80 40 10 10 40 20

0 0 0 0 （FY） 18 19 20 （FY） 18 19 20 （FY） 18 19 20 （FY） 18 19 20

Note: The percentage figures do not add up to 100% due to the contribution of Corporate / Other.

Major Businesses Major主な業務内容 Businesses

Yen / foreign currency deposits, structured deposits, investment Provision of financial products, services and advisory services trusts, securities brokerage services (through a partner institution), ⚫ Retail Banking ⚫ Corporate Business for corporations, public-sector entities and financial institutions, life and nonlife insurance (through partner institutions), housing healthcare finance, trust banking loans, provision of financial transactions and services for individuals

Real estate-related nonrecourse finance and corporate finance, Unsecured loans and credit guarantees ⚫ Structured Finance project finance, specialty finance including M&A-related finance ⚫ Shinsei Financial (Shinsei Financial, Shinsei Bank Card Loan L (former Shinsei Bank Lake), NOLOAN, Lake ALSA) Private equity, credit trading, business succession finance and asset- ⚫ Principal Transactions backed investment, etc. ⚫ APLUS FINANCIAL Shopping credit, credit cards, loans and payment services

⚫ Showa Leasing Financial products and services focused around lease finance ⚫ Other Individual Other subsidiaries Business Foreign exchange, derivatives, equity-related and other capital ⚫ Markets Business markets business

⚫ Other Global Markets Securities, asset management and wealth management Businesses

5 Current Status of the Shinsei Bank Group [Financial and Nonfinancial Highlights]

Financial Highlights Nonfinancial Highlights

Operating Assets Deposits Ratio of Outside Directors on the Board of Directors Ratio of Female Board Members （Trillions of yen） （Trillions of yen） 9 7 ¥8.2trillion ¥6.5trillion 40.0% 6 71.4% 5 6 4

3 3 2

1

0 0 （End of Mar.） 17 18 19 20 21 （End of Mar.） 17 18 19 20 21

Ratio of Nonperforming Claims Classified under the Ratio of Female Managers Financial Revitalization Law to Total Claims Total Revenue / Profit Attributable to Owners of (Nonconsolidated) the Parent ■■Total Revenue Section Leader-Level Section Manager-Level （%） （Billions of yen） ■■Profit Attributable to Owners of the Parent or Higher 19.6% or Higher 32.7% 5 250 ¥221.9billion

4 200

3 100

2 100

1 0.64% 50 ¥45.1billion

0 0 （End of Mar.） 17 18 19 20 21 （FY） 16 17 18 19 20 Arrangement of Renewable Number of Employees Registered “MoneyConnection®” Financial Expenses / Expenses-to-Revenue Ratio Common Equity Tier 1 Ratio Energy Project Finance for Side or Concurrent Work Literacy Program (Management Accounting Basis) (International Standard) (Employees) （Billions of yen） （%） （%） （Billions of yen） （Employees） （Schools） （Students） 300 75 15 210 ¥201.0billion 80 employees 1,500 160,000 67.4% 75 1,243 158,270 schools % 175 students 11.3 1,200 60 120,000 200 50 10 140 900 ¥149.6billion 105 40 80,000 600 100 25 5 70 20 40,000 35 300

0 0 0 0 0 0 0 （FY） 16 17 18 19 20 （End of Mar.） 17 18 19 20 21 （FY） 18 19 20 （FY） 18 19 20 （FY） 18 19 20 ■■Expenses ● Expenses-to-Revenue Ratio ■■Cumulative Number of Schools Where the Program Was Held (Left)） ■■Cumulative number of Student Participants (Right) 6 Identity of the Shinsei Bank Group [Corporate Value Creation Mechanism]

Integrate organically management Achieve a society in which each person and every resources within the Group across By co-creation with outside partners company can enjoy financial and nonfinancial companies and industries products and services that meet their needs

Created Business Model P.8 Value P.9

Core Pursue growth through value co-creation with external partners after organically Strategy integrating management resources within the Group Enhance / Input Leverage Our Deploy Output Outcome Capabilities products / Self-Contained services Value Co-Creation P.8 Model know-how Model Society-Related Value creation from Generation of synergies by integrating Capital Human Resources internal resources data, know-how with external services Access to finance Intellectual Fund flows that fit Quick, flexible business deployment Greater value for our customers Capital societyʼs needs Solutions through Organization Flexible Internalized Deeper Finance integration with response to products / understanding of as a Service external services customer needs services Enhance our customers Natural Capital products / Fulfill our social services responsibilities Operation know-how Human and Organizational Capital

Source of Our Strengths Growth Opportunities Capital Financial Capital Information Financial Management Governance Strengths Technology Technology Infrastructure

Foundation for meeting Address social and environmental issues Fulfill our social responsibilities our goals / responsibilities ◼ Access to finance Social infrastructure services ◼ Fund flows that fit societyʼs needs ◼ Customer-oriented services ◼ Solutions through integration ◼ with external services

Priority Management Issues (Materiality) P.20

Expertise and Governance People Organization Operations Capital Execution

7 Identity of the Shinsei Bank Group [Corporate Value Creation Mechanism]

Input Business Model

Input that generates all creative value are expressed as The difference between a self-contained business model and a value co-creation business model lies in the scope of collaboration. In a self-contained business model, we have been organizational abilities and capabilities. creating synergies through collaboration within the Group. In a value co-creation business Capabilities are organizational capabilities that are the model, we have been creating synergies through the integration of data and know-how with source of a company's growth and primarily encompass other parties outside the Group. In addition, in a value co-creation business model, the Group's four points: human resources, organization, operations and functions are broken down to provide customers with the necessary functions and respond flexibly to their needs. capital. Strengthening and leveraging the capabilities that Both of these business models are mutually enhancing, and we are able to form partnerships serve as input is a source of differentiation, and this is one with others through our know-how cultivated in a self-contained manner. We have been of fundamental strategies of Medium-Term Strategies. accumulating the experience and knowledge gained through value co-creation as new self- contained know-how.

Core Strategy Core Strategy Grow through Enhance / Value Co-Creation Leverage Our Capabilities Deploy Self-Contained products / Value Co-Creation services Model know-how Model Human ⚫ Diverse human resources who generates innovative ideas Resources Consolidated employees: 5,605 Value creation from Generation of synergies by integrating data, internal resources know-how with external services

⚫ An organizational structure that enables customer-oriented Organization business Quick, flexible business deployment Greater value for our customers

Flexible Internalized Deeper Finance Operation ⚫ Stable and productive operating system response to products / understanding of as a Service customer needs services Enhance our customers products / ⚫ Financial infrastructure supporting Redesigning Finance services Capital Operating assets: ¥8.2 trillion know-how Deposits: ¥6.5 trillion

(As of March 31, 2021) Source of Our Strengths Growth Opportunities

Information Financial Management Governance Strengths Technology Technology Infrastructure

8 Identity of the Shinsei Bank Group [Corporate Value Creation Mechanism]

Output and Outcome

Among the values (output) created by Output business models, quantitative targets are financial targets, and qualitative targets Society-Related Capital Natural Capital are initiatives for sustainable growth. This • Improve access to finance • Financing renewable energy projects • Build and plan ecosystems in partnership with Results of bilateral and joint arrangement: ¥201.0 billion qualitative goal is synonymous with companies in other industries • Deeper understanding of our customers Human and Organizational Capital materiality (a key management issue) and • Maintain higher level of customer satisfaction • Active participation of women in the workplace also encompasses contributing to the SDGs. Ratio of female board members: 40.0% We have further strengthened our efforts to Intellectual Capital Ratio of females at the executive officer level: 16.1% Ratio of females at the section manager level or higher: address climate change issues compared to • Provide customer-centric financial function and solution 32.7% • Provide financial literacy program • An organizational structure that allows competitive and when the Medium-Term Strategies were first MoneyConnection® financial literacy program cumulative diverse human resource number of student participants (since fiscal Number of employees registered for concurrent work formulated. For information disclosure of 2007):158,270 or side work: 75 output, in addition to expanding financial Financial Capital information, we have also strengthened • ROE 4.9% • Common Equity Tier 1 (CET 1) Ratio 11.3% information disclosure through the TCFD framework. (See P.18 Initiatives for Climate Change Issues through Our Core Businesses) Outcome

• Access to finance • Fund flows that fit societyʼs • Solutions through integration with • Fulfill our social needs external services responsibilities

(As of March 31, 2021)

9 Identity of the Shinsei Bank Group [Evolution of the Shinsei Bank Group]

Since our launch as Shinsei Bank, Limited in 2000, the Group has continued to expand the customer base and stabilize income while acquiring new financial functions through acquisitions including APLUS FINANCIAL Co., Ltd., Showa Leasing Co., Ltd., and Shinsei Financial Co., Ltd.

First Medium-Term Second Medium-Term Third Medium-Term Medium-Term Management Plan Management Plan Management Plan Strategies BPS(yen) (FY2010~2012) (FY2013~2015) (FY2016~2018) (FY2019~2021) EPS(yen) Shinsei Bank Launched 1,000 4,283 4,000 Book-value Per Share (BPS) (Note) (Right) 750 3,000

500 2,000 Allocated reserves in connection with our consumer 250 finance business 202 1,000 Earnings Per Share (EPS) (Note) (Left) 0 0 Posted impairment losses and allocated reserves in order to Posted impairment losses and allocated reserves in address dramatic changes in statutory and regulatory requirements connection with our consumer finance business as well as as well as operating conditions in our consumer finance business Posted impairment losses and real estate related and non-core assets -1,000 allocated reserves in connection with -1,000 our overseas assets in response to （FY） 2000 2005 the global financial crisis 2010 2013 2016 2019 2020 (FY) External 2000 Collapse of the IT bubble economy 2005 End of the government guarantee on full 2010 European debt crisis 2016 Introduction of 2020 COVID-19 crisis Environment savings deposits negative interest rate 2008 Bankruptcy of Lehman Brothers policy Note: Shinsei Bank executed a 1-for-10 reverse stock split on October 1, 2017. Per share data is calculated on the assumption that this reverse stock split was executed prior to fiscal 2017.

Transition of the Shinsei Bank Group 2000 Shinsei Bank launched 2004 APLUS Co., Ltd. (now APLUS FINANCIAL Co., Ltd.) converted 2016 Showa Leasing Co., Ltd. converted into a wholly owned consolidated Name changed from The Long- into a consolidated subsidiary. Listed the Bankʼs common stock subsidiary Term Credit Bank of , on the First Section of the Stock Exchange. Converted Shinsei Financial Co., Ltd. entered the unsecured personal loan business 1952 The Long-Term Credit Bank of Limited (LTCB), to Shinsei Bank, the Bank's long-term credit bank charter to an ordinary bank in Vietnam Japan, Limited established Limited charter 1998 Due to business failures, temporary 2017 Established the Shinsei Bank Group Headquarters nationalization and special public 2001 Shinsei Securities Co., Ltd. 2005 Showa Leasing Co., Ltd. converted into a consolidated management began based on the commenced operations subsidiary 2019 Acquired all shares of Financial Japan Co., Ltd. Financial Revitalization Law Showa Leasing Co., Ltd. acquired the shares of SHINKO LEASE CO., LTD. 2000 The Long-Term Credit Bank of 2003 Shinsei Investment Management 2007 SHINKI Co., Ltd. (now Shinsei Personal Loan Co., Ltd.) Formulated "Redesigning Finance" Medium-Term Strategies (fiscal 2019 Japan, Limited was bought out by Co., Ltd. commenced operations converted into a consolidated subsidiary to 2021) New LTCB Partners CV, a US private equity investment 2008 GE Consumer Finance Co., Ltd. (now Shinsei Financial Co., 2020 Concluded an agreement to acquire stocks of UDC Finance Limited to consortium comprised of Ltd.) converted into a consolidated subsidiary make it a wholly owned subsidiary Ripplewood Holdings and J.C. APLUS FINANCIAL Co., Ltd. converted into a wholly owned consolidated subsidiary Flowers & Co. LLC

2005 Launched 32 colors of new 2016 Entered unsecured personal loan business in Vietnam 2018 Launched a new Lake ALSA brand, an unsecured loan product Business Topics cash cards for retail Power-Flex account customers

Transition of Stock 2000 Preferred stock capital injection and 2006 Partial repayment of public funds / 2011 Issuance of new shares through 2018 Acquisition and cancellation of a partial reduction of preferred stock Cancellation of treasury shares international offering treasury shares capital without compensation 2007 Conversion of preferred stock into 2016 Acquisition of treasury shares 2019 Implemented a secondary offering of 2003 Reduction of capital through the common stock 2017 Acquisition of treasury shares / Merger of shares of common stock of the Bank / merger of two shares of common 2008 Issuance of new shares by third-party 10 shares of common stock into one share Acquired treasury shares stock into one share allotment / Conversion of preferred 2020 Acquired treasury shares stock into common stock

10 Pave the Way to Achieve What the Shinsei Bank Group Wishes to Be [Sustainability Management]

The Shinsei Bank Group redefines the Group's added initiatives. We separated the investment and Group Sustainability Management Policy sustainability management as the way that the lending policy from the Group Sustainability Policy The Shinsei Bank Group has clarified its basic approach Group should manage itself. The Shinsei Bank Group and established the Responsible Investment and and direction for addressing environmental and social will contribute to the sustainability of society and Lending Policy, effective July 1, 2021. issues, presented the policy to all stakeholders, and aims to improve management through dialogue with aims to achieve sustainable growth through value- stakeholders.

Environmental and Social Sustainability Responsible Investment and Lending Policy ■Objectives Shinsei Bank Group : Sustainability as a Business The Shinsei Bank Group recognizes that it is the social Materiality responsibility of financial institutions to support the Foundation for meeting our Address social and environmental issues Fulfill our social responsibilities sustainable development of the environment and goals / responsibilities society and to help resolve environmental and social issues through its core businesses, investment and Management Strategy E S E S G lending, and has established the Responsible Grow through Value Co-Creation Fulfill Our Social Responsibilities Enhance/Leverage Our Capabilities Investment and Lending Policy in order to realize Fulfill responsibilities to Governance, Organizational structure Access to finance environment and society responsible investment and lending for the environment • Involvement of the Board of Directors • Provide services for customer needs which are • Sustainable procurement • Group Sustainability Committee and society. not satisfied by traditional financial services • Reduction of GHG emissions • Divisions promoting sustainability • Provide payment methods with • Business and human rights emerging technology ■Corporate Governance Framework Customer-oriented services Management framework • Management framework from the perspective of • Fiduciary duty sustainability The Group Sustainability Committee regularly reports Fund flows that fit society's needs Social infrastructure People and discusses the status of business execution based • Sustainability finance (sources and uses) • Employee engagement S • Maintain cybersecurity • Transition finance • Promoting diversity, diversity, reforming on the Responsible Investment and Lending Policy and • Anti-money laundering / workstyles combating the financing of terrorism (AML/CFT) • Enhancing health and productivity management the status of risk management in applicable business areas. Promote activities by utilizing initiatives e.g. Principles for Responsible Banking Reduce negative impact After summarizing the content based on discussions at on environment Cooperate with external stakeholders (corporate philanthropic / sponsorship activities) and society the Group Sustainability Committee, we regularly report Contribute to sustainability in business activities Our sustainability to support business activities to the Group Executive Committee, revise the policies and review the selection of businesses to be applied as Awareness of risks for future global environment and society needed, and continuously work to upgrade the Responsible Investment and Lending Policy. Glossary Group Sustainability Management Policy Responsible Investment and Lending Policy & URL https://www.shinseibank.com/corporate/en/policy/esg/policy.html https://www.shinseibank.com/corporate/en/policy/esg/investment.html

11 Pave the Way to Achieve What the Shinsei Bank Group Wishes to Be [Features of Shinsei Bank's Corporate Governance]

Ratio of Outside Directors Ratio of Outside Directors with Corporate Ratio of Female Board Members on the Board of Directors Executive Experience

⚫ Five of the seven directors at Shinsei Bank are outside directors ⚫ Outside directors are well-balanced members with extensive ⚫ 40% of the total number (10) of directors and Audit & and comprise a majority of the Board of Directors. experience and high levels of expertise, such as management, Supervisory Board members of the Bank are women. ⚫ The Bank has maintained a Board structure where outside financial, business-related useful fields including consumer, real ⚫ Diversity & inclusion is one of our most important management directors comprise a majority since Shinsei Bank started. estate, and elderly-related business, as well as comprehensive strategies, and we are working to promote the empowerment of ⚫ The Bank has submitted the names of seven individuals, knowledge and experience in consulting, IT and academia. women in the workplace. including outside Audit & Supervisory Board members as ⚫ Three of the five outside directors on our Board are or have independent officers to the . worked as corporate executives. 40% 71.4% 60%

Board of Directors with a Full Diversity of knowledge and Experience The Board of Directors of Shinsei Bank is composed of five outside directors and two executive directors with extensive experience and highly specialized knowledge and is well-balanced. In addition, it is composed with diversity including gender, generation, and internationality. ◼Diversified Experiences and Skills Required for Outside Directors ◼Audit & Supervisory Board Members’ Skill Matrix Ernest M. Higa Jun Makihara Rie Murayama Hiroko Sasaki Ryuichi Tomimura Shinya Nagata Ikuko Akamatsu Shiho Konno Corporate Management ● ● Finance ● Management Experience Outside Director ● ● ● ● Financial Accounting ● ● Venture Company ● Legal Affairs ● Debt Finance ● ● Financial Experience Equity Investment ● ● ● Risk Management ● Consumer Business ● Real Estate Business ● Other Necessary Experience Healthcare, Elderly-related Business ● IT / Digital ● Comprehensive Knowledge on Management, Finance, Consulting, Academia and IT / Digital and Related ● ● Administration Bureau

12 Pave the Way to Achieve What the Shinsei Bank Group Wishes to Be [Board of Directors, Audit & Supervisory Board Members]

Director Outside Directors

Hideyuki Kudo Reappointed Akira Hirasawa Newly Appointed Ernest M. Higa Reappointed Jun Makihara Reappointed Rie Murayama Reappointed President and Director Outside Director Outside Director Outside Director Chief Executive Officer Nomination and Chairperson, Nomination and Outside Outside Outside Chairman of the Board Compensation Nomination and Compensation Committee Member Independent Compensation Committee Independent Committee Member Independent

［Reasons for Nomination］ ［Reasons for Nomination］ ［Reasons for Nomination］ ［Reasons for Nomination］ ［Reasons for Nomination］ Mr. Hideyuki Kudo has extensive experience Mr. Akira Hirasawa has been focusing on Mr. Ernest M. Higa was asked to stand as Mr. Jun Makihara was asked to stand as an Ms. Rie Murayama was asked to stand as and insight, focusing on corporate and enhancing the governance of Shinsei Bank Group an outside director in order to reflect in the outside director in order to reflect in the an outside director in order to reflect in risk management operations. Since his through extensive experience and achievements Bank's management, his experience and Bank's management, his extensive knowledge the Bank's management, her wide range appointment as the President, he has been centered on the management sections of risk deep insight in consumer businesses. of finance, and his domestic and international of expertise based on her experience as contributing to improved corporate value management, comprehensive planning, and experience. outside director at other companies, as well 2013 Director, Shinsei Bank, by establishing and implementing the legal and compliance. In recent years, he has as her knowledge based on her extensive Limited (Current) 2011 Director, Shinsei Bank, core strategies of “enhance/leverage our been appointed as an officer in charge of experience at an investment bank, particularly Limited (Current) capabilities” and “grow through value co- organizational strategy, human resources, ［Status of Concurrent Position］ related to business and risk analysis in real creation” outlined in the Medium-Term general affairs, and other matters as he is • Chairman, President & Chief Executive ［Status of Concurrent Position］ estate, mortgage, construction and related Strategies that started in fiscal 2019. contributing to the enhancement of corporate Officer, Higa Industries Co., Ltd. • Director, Monex Group, Inc. sectors. value through the planning and promotion of • Chairman & Representative Director, • Director, Philip Morris International Inc. Wendy's Japan K. K. 2019 Director, Shinsei Bank, 2021 Chief Officer, Group Corporate productivity reforms and workstyle reforms. • Director, Delsole Corporation Limited (Current) Planning and Finance (Current) 2021 Director (Current) • Board of Overseers, Columbia Business 2015 Representative Director, President 2020 Senior Managing Executive Officer, School ［Status of Concurrent Position］ and Chief Executive Officer (Current) Overseeing Group Organizational Strategy, Group Human Resources, Group General • Board of Trustees, Showa Women's • Director, MAEDA CORPORATION 2010 Managing Executive Officer Services and Group IT, Chief Officer, Group University Legal and Compliance (Current) • Board Member, The Tokyo New 2018 Senior Managing Executive Officer, Head of Operations Management (Current) Business Conference 2015 Managing Executive Officer

Ownership: Common shares 32,313 Ownership: Common shares 11,689 Ownership: Common shares 7,335 Ownership: Common shares 22,111 Ownership: Common shares 2,111 Attendance rate: 100% Attendance rate: － Attendance rate: 100% Attendance rate: 83% Attendance rate: 100%

(Ownership of common shares: As of May 30, 2021) Glossary Directors and Executive Officers & URL https://shinseibank.com/corporate/en/about/officers/

13 Pave the Way to Achieve What the Shinsei Bank Group Wishes to Be [Board of Directors, Audit & Supervisory Board Members]

Outside Directors Audit & Supervisory Board Member Outside Audit & Supervisory Board Member

Hiroko Sasaki Newly Appointed Ryuichi Tomimura Reappointed Shinya Nagata Reappointed Ikuko Akamatsu Reappointed Shiho Konno Reappointed Outside Director Outside Director Audit & Supervisory Outside Audit & Outside Audit & Nomination and Nomination and Board Member Supervisory Board Supervisory Board Outside Outside Outside Outside Compensation Compensation Member Member Committee Member Independent Committee Member Independent Independent Independent

[Reasons for Nomination] ［Reasons for Nomination］ ［Reasons for Nomination］ ［Reasons for Nomination］ ［Reasons for Nomination］ Ms. Hiroko Sasaki was appointed because of Mr. Ryuichi Tomimura was asked to stand as Mr. Shinya Nagata was asked to stand as an Ms. Ikuko Akamatsu was asked to stand as an Ms. Shiho Konno was asked to stand as an her knowledge and experience in a financial an Outside Director in order to reflect in the Audit & Supervisory Board Member based Outside Audit & Supervisory Board Member in Outside Audit & Supervisory Board Member in institution, in a consulting company and Bank's management, his extensive experience on the judgment that he is suitable as a order to reflect in the Bank's audit operations, order to reflect in the Bank's audit operations, matters concerning the elderly, as well as her and wide range of knowledge, including corporate auditor who can play a central role her expertise in compliance and governance, her expertise and extensive experience as a knowledge and management experience at a information systems, as a management in all areas of corporate audit. Through his etc. and to take on the promotion of diversity, lawyer, and based on her experience as an venture company. executive and a consultant. long work experience at Shinsei Bank, Shinya as well as for her professional knowledge and outside director at listed companies as well as Nagata has gained a deep understanding of experience as a certified public accountant her expertise in corporate governance and to 2021 Director, Shinsei Bank, 2015 Director, Shinsei Bank, the Group's businesses, and with his extensive and a certified fraud examiner as well as take on the promotion of diversity. Limited (Current) Limited (Current) knowledge and experience in finance and extensive experience as a consultant based 2018 Audit & Supervisory Board Member, ［Status of Concurrent Position］ ［Status of Concurrent Position］ accounting, he is able to make useful remarks on the aforementioned expertise. Shinsei Bank, Limited (Current) • President and CEO, Lyxis Co., Ltd. • Executive Vice President, and suggestions at the Board of Directors 2019 Audit & Supervisory Board Member, • President & CEO, ChangeWAVE Inc. Representative Director, meetings and the Audit & Supervisory Board Shinsei Bank, Limited (Current) ［Status of Concurrent Position］ • Director, UT Group Co., Ltd. SIGMAXYZ Inc. meetings. • Member, Committee on Realization • Director, VECTOR INC. ［Status of Concurrent Position］ of a Gender-Equal Society of Japan 2012 Audit & Supervisory Board Member • Director, TOP'S Inc. Federation of Bar Associations (Current) • Board of Directors, The Japanese • Established Shiho Konno Habataki 2010 Executive Officer Institute of Certified Public Accountants Law Office • Director, CAWACHI LTD. • Director, Monex Group, Inc. • Audit & Supervisory Board Member, • Director, LIXIL Corporation Group Holdings, Ltd.

Ownership: Common shares 0 Ownership: Common shares 2,111 Ownership: Common shares 3,050 Ownership: Common shares 0 Ownership: Common shares 0 Attendance rate: － Attendance rate: 100% Attendance rate: 100% Attendance rate: 100% Attendance rate: 100%

(Ownership of common shares: As of May 30, 2021) Glossary Directors and Executive Officers & URL https://shinseibank.com/corporate/en/about/officers/

14 Pave the Way to Achieve What the Shinsei Bank Group Wishes to Be [Initiatives for Employees]

At the Shinsei Bank Group, we are constantly reviewing our respect the idea of referral recruitment through introductions two years starting in 2021. The Group set two common human resource systems and measures, recognizing that the from Shinsei Bank Group employees and the career targets to create an environment and foster an organizational most important task for organizational growth is for all development of each individual, and we accept them in the culture in which all employees working at the Group can employees to demonstrate their abilities and to be motivated form of re-employment, where they retire from the Group and demonstrate their abilities and play an active role while in their work. In order to provide optimal value to our take a job at another company, and also provide a place for striving to harmonize their work and lifestyles. customers, we are working to develop and fully utilize human alumni, a network of retirees, to interact. In addition, we will resources, while fostering an organizational culture as a whole allow side work/concurrent work, and freelance work outside Target 1: To ensure that employees raising children, Group. the Group for personnel working at other companies. Within regardless of gender, continue to grow while working and Shinsei Bank Group's Human Resources Strategy the Group, we will make maximum use of human resources raising children, make employees aware of various human At the Shinsei Bank Group, we believe that human resources by fostering a flexible personnel system that enables diverse resource systems, support information exchanges between with diverse characteristics and values can continue to create human resources to thrive, and a corporate culture that the peer groups, provide information on career development new value as an organizational unit by recognizing and accepts and utilizes diversity. Through these measures, we before and after childcare, provide training, etc. accepting each other's existence and leveraging everyone's will acquire and utilize the human resources necessary for Target 2: To foster a corporate culture in which all employees respective strengths. continuous value creation in various forms from within and can work and live in harmony with each other, raise In fiscal 2021, we will promote structuring systems and a outside the Group. awareness of workplace priorities and to improve the corporate culture that will enable us to acquire and retain In April 2021, five Shinsei Bank Group companies* stereotyped consciousness of gender roles. diverse human resources that realize continuous value formulated an action plan based on Act on Advancement of *Shinsei Bank, Ltd., Showa Leasing Co., Ltd., Shinsei Investment & Finance creation under the new normal. In terms of recruitment, we Measures to Support Raising Next-Generation Children, for Co., Ltd., APLUS FINANCIAL Co., Ltd., Shinsei Financial Co., Ltd.

Introduction of diverse recruitment methods, competitiveness in recruitment/strengthening of branding Inside Shinsei Outside Shinsei Bank Group Employment Bank Group • Mid-career recruitment Utilization and acquisition of Referrals/returnees/alumni recruitment of senior DX personnel Maximizing the use of human personnel outside the Group • Recruitment of new graduates resources within the Group Employment of full-year employees and introduce new courses (Innovator course) Flexible personnel system Highly specialized financial personnel Securing diverse human resources that do not assume only regular and long-term employment × Temporary Side Work/ IT personnel Entrustment Corporate culture that accepts Transfer and Concurrent and Consign DX human resources Staffing Work diversity and generates synergy Global human resources • Acceptance of side work/concurrent work personnel from other companies Employee of other enterprises • Utilization of freelance • Acceptance of side work/concurrent work and parallel careers by Cost performance Ex-employees in-house personnel Maximizing the value of Freelance Appropriate Metabolism employees Retirement • Support for Second Careers

15 Pave the Way to Achieve What the Shinsei Bank Group Wishes to Be [Initiatives for Employees]

Active Participation of Women

Shinsei Bank President and Chief Executive Officer promoting the active participation of women in the Hideyuki Kudo supports the “Declaration on Action by a workplace with a sense of speed across the Group. Group of Male Leaders Who Will Create a Society in which Holding Shinsei Girls Day Women Shine” advocated by the Cabinet Office. In In October 2020, we invited Ms. Kathy Matsui (former Vice addition, we are actively promoting women's career Chairman of Japan Co., Ltd.) to give a through the signing of the Women's Empowerment lecture to our employees and we held Shinsei Girls Day in Principles, participation in the 30% Club Japan, and an online format. Ms. Matsui advised Group employees on Shinsei Girls Day Ms. Kathy Matsui support for the Keidanren's "Challenge Initiatives for 30% Womanomics and the points for raising female employees of Executives to be Women by 2030." The Group Womenʼs based on her own experience at the lecture entitled "The Feature articles on Integrated Activity Promotion Committee, established in February Importance of Womanomics." At Shinsei Girls Day, held Report 2021 2018, is composed mainly of the top management of after the lecture, young female employees became business divisions and directors of Group companies, and facilitators at an event that invited junior high school, high ◼ Roundtable Discussion among is strongly driving the promotion of the active participation school, and university students from Shinsei Bank Group's Outside Directors and Outside Audit of women in the Group. In addition, five Shinsei Bank business partners. They answered questions from & Supervisory Board Members Group companies formulated “The Action Plan for participants and held a quiz competition related to the (P35-37) Promoting Active Participation of Women,” for three years Group to create opportunities for the participants to feel ◼ Statements from Top Management starting in fiscal 2020. The Group set the following familiar with the Group and working women. on Promotion of Diversity (P38) common targets to promote highly effective initiatives for

◼ Action Plan Based on the Act on Promotion of Women’s Participation and Advancement in the Workplace (From April 2020 to March 31, 2023) Achieve a ratio of 18% or more for women in managerial positions* at five group companies (also set target separately for Target 1 each company)

Target 2 Achieve 100% for the childcare-related leave rate for both males and females

* Senior managerial positions or higher ◼ Target Ratio of Women in Management Positions (Senior Manager or Above) (as of March 1, 2021) Shinsei Investment & Shinsei Bank Showa Leasing APLUS FINANCIAL Shinsei Financial Total Finance Target 20% 8% 15% 18% 17% 18% or more

Result 19.6% 7.7% 17.3% 15.6% 15.1% 16.5%

16 Pave the Way to Achieve What the Shinsei Bank Group Wishes to Be [Management under Novel Coronavirus Infections]

Redesigning Workstyles Launch of "Redesigning Workstyles" Initiatives for "Redesigning Workstyles" To fulfill our social responsibilities as a financial "Redesigning Workstyles" is a transformation effort that institution, the Shinsei Bank Group sees the rapid consists of three elements: workstyles, workplaces, and Redesigning Workstyles of Shinsei Bank Group emergence of a new normal following the spread of the work processes, as well as infrastructure improvements, The Shinsei Bank Group has been ahead of other Novel Coronavirus as an opportunity for change aimed such as the information and communications that financial institutions in promoting initiatives aimed at at achieving sustainable growth. We are redefining and support these elements. We aim to promote a diverse "diverse working styles" prior to the pandemic of Novel further accelerating the various initiatives we have been range of workstyles that are not limited to hours or Coronavirus infections. One example is the lifting of pursuing for "Redesigning Workstyles" aimed at diverse places, and to enable Shinsei Bank Group employees to restrictions on side work/concurrent work and the working styles. select the workstyle that suits them the best. This will elimination of dress codes. At the same time, we are Through this process, we will continue to provide new lead not only to more efficient operations, but also to steadily developing systems to enable employees to value to customers and society by enhancing the improved productivity in a broader sense by boosting work from anywhere. In fiscal 2019, we had already engagement of people working in the Shinsei Bank the satisfaction of those working in the Group. begun expanding our remote work system, including Group and creating innovation from a diversity distributing laptop PCs. In fiscal 2020, we were perspective, while also leading to the sustainable seriously affected by the spread of the Novel growth of the Group. ◼Picture of Redesigning Workstyles Coronavirus, but we were able to deal with it relatively Seizing the rapidly advancing new normalization as an opportunity for easily, thanks to our previous efforts. change toward sustainable growth, redefine the existing workstyle reforms

Workstyle reforms until now ◼Action Chronology of Workstyle Reform and Redesigning Workstyles (Fiscal Year 2020) Spread of Novel Accelerating Coronavirus reforms • Liberalization of workplaces First quarter Second quarter Third quarter Fourth quarter Fiscal 2021 ～ infection • Creation of work support allowances Redesigning Workstyles • Healthy management under new normal conditions Selected themes related to the Redesigning Sharing and checking consistency of Employees ⚫ External release of Penetration of Redesigning • Facilitating communication improvement of the working business environment : Confirmation and Workstyles decision of With Corona Basic Policy survey Redesigning Workstyle Workstyles environment to be addressed in Promoting free working the future based on the hearing styles without being on improvement needs restricted by time and Improvement Establishment of subcommittees Subcommittees were established Redesigning place Redesigning for each theme, and specific needs by theme : Selection of projects for Execution phase Deepening of efforts hearing measures were implemented as business operations Work Processes the Workplace needed. Reviewing work Redesigning how to use processes the office

• Introduction of electronic • Office redesign contracting tools • Establishment of satellite • Digitization of internal memoes offices

Infrastructure development such as information and telecommunications

17 Initiatives for Climate Change Issues through Our Core Businesses

Governance Strategy: Opportunities

The Shinsei Bank Group has positioned the Group Sustainability Policy as the starting point for formulating management Promotion of Businesses that Initiatives in Fiscal 2020 strategies, and by contributing to the creation of a sustainable society, we aim to fulfill our corporate social responsibilities Contribute to the Improvement of and acquire sustainable growth opportunities. Environmental and Social Issues Responding to global environmental issues, including climate change, is indispensable for a sustainable society. We will strive to create social value and increase the corporate value of the Shinsei Bank Group over the medium to long term The Shinsei Bank Group considers climate change and Since 2012, Shinsei Bank has been promoting syndicated through a variety of initiatives, including investment in and financing for clientsʼ climate change-related projects. other global environmental issues to be extremely loans for renewable energy businesses such as solar, important issues in order to realize a sustainable society. wind, and biomass, and has been supporting the spread In addition to having business risk in the Group's of renewable energy in cooperation with regional financial sustainability management, they also represent a major institutions. In fiscal 2020, we continued to actively Risk Management business opportunity. Through project financing for the engage in project financing for wind power generation renewable energy business and investment and lending and financing for infrastructure investment companies, Policies for Responsible Adoption of the Poseidon Principle in environmental real estate and facilities for reducing and several of these were formed as "Shinsei Green Investment and Lending environmental impact in ship financing, we have been Loan." We aim to create a larger flow of funds by actively engaged in projects and businesses that diversifying our distribution methods through the The Shinsei Bank Group considers transactions with In March 2021, Shinsei Bank signed the Poseidon contribute to improving and resolving environmental and syndication of the "Shinsei Green Loan" and the use of companies that do not pay due attention to environmental Principles, an initiative for financial institutions to address social issues. project bonds. In addition, together with Daiwa Energy & and social issues to be management risks and has climate change risks in the shipping industry, as the fourth To further deepen these efforts, in fiscal 2019 we Infrastructure Co., Ltd., we began providing mezzanine prohibited or restricted transactions in connection with financial institution in Asia. Financial institutions established Sustainable Impact Development Division financing for renewable energy power generation investments and lending for certain specific businesses participating in the Poseidon Principles will compile the within Institutional Business Unit. In collaboration with businesses. based on the recognition that there are serious risks to annual greenhouse gas emissions of the vessels subject to each division, we are planning and promoting sustainable In real estate finance, we made several nonrecourse the environment and society. In July 2021, we revised the financing, calculate and disclose their contribution to the finance and developing and supplying investment loans for environmentally certified real estate, and also framework to promote responsible investment and lending greenhouse gas emission reduction targets for each ship products for institutional investors. In January 2021, we executed financing for large-scale high-specification by adding prohibitions and noteworthy points across and the entire ship financing portfolio. (Shinsei Bank will established the Group Sustainability Committee to logistics centers that also take into account the reduction sectors. From the standpoint of climate change announce them from fiscal 2022.) In the future, Shinsei establish and upgrade a comprehensive promotion of environmental impact as a new asset type. countermeasures, based on preventive approaches, we Bank, as a financial institution actively engaged in ship system for sustainability management of the Group as a In ship finance, we are expanding loan balances to will not conduct new investments and lending both financing, will support the transition of the shipping whole. Going forward, we will capture business vessels with scrubbers and LNG fuel carriers. domestically and overseas for new coal-fired thermal industry to sustainability from a financial perspective while opportunities while further collaborating across the Group. power plants, thereby reducing the amount of investment also utilizing the Poseidon Principles, and manage the and lending for these power plants. climate change risks associated with this business.

Ratios & Targets Strategy: Risks

◼GHG Emissions and Future Policy Climate change is expected to affect the Shinsei Bank Group's portfolios mainly through the following two routes. Electricity consumption We have established a measurement system to expand Physical Risks： Emissions data the scope of GHG emission disclosures to Shinsei Bank, Direct impact such as property destruction, etc. caused Carbon-related asset exposures (carbon-related assets (Fiscal Year) 2019 2020 APLUS, Showa Leasing and Shinsei Financial for by weather events including floods and storms, indirect (energy and utilities, excluding solar and wind power electricity, which is the largest contributor to Scope 1 and impact such as global supply chain interruption and project finance)) accounted for 4.2% of our total CO2 Emissions (t) 15,330 14,168 Scope 2. Going forward, we plan to set targets for resource depletion, etc. exposure in March 2020 and 3.7% in March 2021. reducing GHG emissions after further expanding the Electricity consumption 32,153 29,619 (1000kWh) scope of Scope 1 and Scope 2 measurement and Transition Risks： disclosure. We are also undertaking initiatives to measure Risks arising from the revaluation of financial assets with and disclose Scope 3, including emissions of GHGs from large GHG emissions as a result of the transition to a investment and lending destinations. carbon-free economy.

18 Social Initiatives

Initiatives for Customers Social Initiatives

Customer-Oriented Business Conduct Concept of Social Contribution Activities

As a guideline for conducting business operations with top priority on customersʼ “best The Shinsei Bank Group considers social interests,” the Bank established the “Policy on Customer-Oriented Business Conduct” contribution activities to be "activities Nurturing (hereinafter referred to as the “Policy”) and an “Action Plan” to put this Policy into practice. that have a positive impact on the the Next The Policy was revised as of June 30, 2020 with the aim of making it easier for customers creation of a sustainable society in Generation Environment to understand and establishing it as part of our corporate culture in the field of sales. which employees of the Group can Protect our earth Support children, youth Each Shinsei Bank Group company and all executives and employees of the Group have participate with sympathy," and will and the environment and physically and we live in reaffirmed the importance of “Pursuing customer-oriented business conduct and actively engage in these activities. intellectually challenged contributing to our customersʼ asset formation,” and by firmly committing to customer- As a corporate group that provides people who create our future oriented business operations, we will contribute to the sustainable growth and development financial services to society, we are of society and the economy. aware that the sound development of Disaster Relief For additional details, please refer to Shinsei Bankʼs website. society is the foundation of the Group's https://www.shinseibank.com/english/fiduciaryduty.html existence. We are fulfilling our role as a Support the areas affected by the good corporate citizen that contributes Great East Japan Initiatives for Shareholders and Investors to the development of society through Earthquake sustainable growth and development. Basic IR/SR Activities Policy for Fiscal 2020 We are also aiming for "value co- creation“ through active collaboration with our partners. ⚫ Enhancing engagement with passive investors (proxy managers, ESG managers) ⚫ Targeting active investors and selection of new investor candidates [TOPICS] Value co-creation with Ashinaga Foundation ⚫ Promoting “ESG as a Business” from an IR/SR perspective among executives and employees In May 2020, the Shinsei Bank Group literacy program, MoneyConnection® that ⚫ Review of IR/SR operations in response to the new normal donated 10 million yen to the Ashinaga Shinsei Bank Group is developing with the ◼ Results of IR/SR Activities (Fiscal 2020) ◼ Top Management's Commitment to IR/SR Foundation (“Ashinaga”) to support authorized specified nonprofit organization, (Number of IR/SR meetings in fiscal 2020) Financial results briefings and telephone conferences 8 times students to go to school and their livelihood Sodateage.net. Subsequently, in October Executive IR/SR CEO Total as part of the Groupʼs approach to deal 2020, we held a trial for prospective IR Day Once Officers officers with Novel Coronavirus infection. scholars, and in February 2021, we held an Investors participation in live-streamed IR Day Approx. 190 46 63 79 188 In a dialogue with Ashinaga Foundation, experience session for staff who are in Small group meeting on integrated report Once 24% 34% 42% 100% we were told that they would like to charge of supporting scholars. Engagement interviews with ESG representatives, proxy ® 15 times provide scholarships to students who Since fiscal 2021, MoneyConnection has voting officers, advisory companies, etc. intend to continue to repay their been introduced as a scholarship support Lectures by market participants and experts for Board of Once Directors scholarships over a long period of time with program for Ashinaga, and online sessions the opportunity to think about "money" at are scheduled to allow many scholars to IR/SR activity reporting at Board of Directorsʼ meetings, Group Executive Committee meetings and General 6 times an early stage, and introduced the financial participate. Managers meetings, and issuance of IR/SR report for employees

19 Pave the Way to Achieve What the Shinsei Bank Group Wishes to Be［Medium-Term Strategies］

Medium-Term Strategies and Business Model ◼ Overview of Medium-Term Strategies Capabilities Business Model Created Value

The Medium-Term Strategies, which began in fiscal 2019, outlines processes for value creation Core Strategy Core Strategy Sustainable Growth through two basic strategies and business models. The Shinsei Bank Groupʼs strengths are Enhance / Leverage Address social and Our Capabilities Grow through Value Co-Creation environmental issues Input Output Fulfill our social resolved into factors to the level of competence to provide individual functions and competencies to People responsibilities

Organization Self- Value Contained Co-Creation Foundation for meeting the others in an abstract and generalized manner. By doing so, our services will be more attractive our goals /responsibilities Model Model Operations Profitability to our “value co-creation model” customers. In addition, we are designing a feedback loop that Capital Self-Contained Financial Targets further refines our self-contained business model by feeding back the results.

Materiality ◼ Business Model: Self-Contained Model and Value Co-Creation Model The three pillars of our role in helping to resolve social and environmental issues are access to Value Co-Creation Self-Contained Model Deploy Model finance, fund flows that fit societyʼs needs, and solutions through integration with external services. B to B to C products / services B × B to C B to C know-how

The fulfillment of our social responsibilities is based on the provision of social infrastructure services, Value creation from Generation of synergies by integrating data, internal resources know-how with external services such as deposits, loans, and settlements, and the provision of customer-oriented services as the Quick, flexible business deployment Greater value for our customers foundation of our financial business. Flexible Internalized Deeper Finance response to products / Enhance understanding of as a Service For the foundation for continuing to fulfill our roles and responsibilities, there are four elements: customer needs services products / services our customers know-how expertise, execution, governance, and capabilities. This cycle will further strengthen our input capabilities. Source of Our Strengths Growth Opportunities

Foundation for meeting our goals / Address social and environmental issues Fulfill our social responsibilities responsibilities

Support these SDGs: Support these SDGs: Support these SDGs:

Access to finance Social infrastructure services ⚫ Provide services for customer needs which are not satisfied by ⚫ Firmly provide fundamental financial functions (deposit, loan, ⚫ Expertise and Execution traditional financial services payment etc.) as social infrastructure ⚫ Provide payment methods with emerging technology ⚫ Maintain cybersecurity ⚫ Governance ⚫ People Fund flows that fit societyʼs needs ⚫ Prevent money laundering ⚫ Provide solutions for supporting sustainable social capital Customer-oriented services ⚫ Organization Solutions through integration with external services ⚫ Place customerʼs benefit first ⚫ Operations ⚫ Give information that is accurate and easy to digest ⚫ Build / participate in ecosystems, use of digital technology ⚫ Capital

20 Pave the Way to Achieve What the Shinsei Bank Group Wishes to Be［Medium-Term Strategies］

Business Strategies ◼Value That Shinsei Bank Group Strives for Society: Nonfinancial KPIs Materiality Main business Nonfinancial KPIs Progress Increase financing ❶ Deployment of ❶ Platform offerings by the Shinsei Bank Group: access points, both Shinsei Bank • Started offering Choy-San, a BANKIT® app to 3PLATZ Business Strategy Individual Business Business Strategy Institutional Business directly and indirectly, Groupʼs service • Expanding functions of BANKIT® apps for more people platforms and ❷ Service development through joint venture with partner companies Focus Area Small-Scale Finance Focus Area Institutional Investors ecosystems • Started offering Sendy Credit Card and Sendy Personal Loan (Purpose-specific ❷ Development of Loans) in Credd Finance for foreign ecosystems Enhance service offerings through building / Provide one-stop services for alternative services jointly • Expansion of use of cloud factoring service in joint venture, anew, with OLTA for participating in ecosystems, using digital investments with partners SMEs and micro-businesses technology and data analysis ❸ Participation of • Started offering Business Credit (per-item sales credit and installment payment) partner companies and Business Credit Card as well as USEN-NEXT Leasing Products through USEN- in service NEXT Financial, a joint venture with USEN-NEXT HOLDINGS platforms and • Started offering Shinsei Bank Smart Card Loan Plus for Nissen customers at ecosystems Nissen Credit Service, a joint venture with Nissen Holdings Address ❸ Participation of partner companies in platforms and ecosystems: Organization Infrastructure social and • Formed alliance to provide financial services in collaboration with NTT DOCOMO environmental • Formed alliance to provide financial services in collaboration with FamilyMart issues Focus Area Group Organization Focus Area Productivity Reforms

Integrate business functions across the Group Cost structure reform including usage of digital technology and channel optimization Expand financing to In the institutional • Establishment of the Group Sustainability Committee help resolve climate investor business: • Established sustainability departments in the Group Headquarters, Institutional change and social ❶ Amount of new Business Unit, and Individual Business Unit issues origination • Amount of new origination: 205.8 billion yen (fiscal 2020) Economic Value that the Shinsei Bank Group Wants to Create: Financial KPIs ❷ Amount of new • Amount of new distribution: 97.6 billion yen (fiscal 2020) distribution • Independent / Co-Arrangement Results of Domestic Project Finance for Renewable Energy:201 billion yen (Fiscal 2020)

EPS Growth Rate Growth Profit Share of Focus Areas Growth Provide reliable Initiatives to ensure ❶ Formulation of Cybersecurity Management of the Shinsei Bank Group Share of operating business profit after net credit costs, excluding one-time factors financial services in a implementation of ❷ Establishment of Shinsei Bank Group C-SIRT and Group C-SIRT Management Office Annual average excluding Small-scale finance Businesses for institutional investors the share buyback effect Fulfill our social stable manner cyber security ❸ Implementation of cyberattack countermeasures for on information systems FY2018 FY2021 FY2018 FY2021 2% or more responsibilities ❹ Cooperation with external specialist organizations 45% 50% 10% 15% Efforts to prevent ❺ Regular training and education unauthorized access

Establishing strong ❶ Evolution of Board ❶ Number of outside directors: five out of seven directors ROE Profitability OHR Efficiency CET 1 Ratio Soundness governance, Governance • Directorsʼ skill diversity: Skill matrix (see p. 12), Ratio of female board members: In the medium term environment for ❷ Initiatives 40% FY2018 In the medium term FY2018 FY2021 Less than FY2018 Minimum employees to to address • Compensation and Nomination Committee consisted of outside directors and audit 6.0% 8.0% 63.0% 50% 12.0% 10% respect each other's organizational & supervisory board members: Six meetings strengths, and work issues based on the ❷ Implementation of effective measures Shinsei Bank aims to maintain or improve the total shareholder return ratio, depending on financial together to create Groupʼs employee • Implementation of measures based on employee surveys and results of Novel conditions and market environment, considering total shareholder return policy as outlined in the new value engagement Coronavirus infections (see p. 15-16, p. 17) Shareholder Revitalization Plan.* survey • Establishment and operation of incentives other than monetary remuneration Return * As mentioned in the Revitalization Plan submitted to the Financial Services Agency on March 25, 2020, we will continue to aim to maintain and improve our shareholder return, taking into consideration the level of the general total shareholder return ratio of Foundation ❸ Promoting Diversity (Shinsei Group Award) Japanese domestic . for meeting • Assign higher weight on the evaluation of team management abilities of our goals/ managers, such as career support for subordinates, and strengthening skill responsibilities development opportunities • Revitalization of group organization through new business start-up projects, etc. ❸ Further promotion of diversity (see p. 15-16) • Increase the ratio of women in managerial positions on a Group basis (fiscal 2020: 16.5%, fiscal 2022: target of 18% or more) • Establish systems to promote the acceptance of diverse working styles and forms of employment that are not based solely on long-term employment Participation in the diversity promotion initiatives (The Valuable 500, the Ikuboss Alliance, and the Keidanren 30% Challenge)

21 What We Intend to Communicate in the Integrated Report 2021

The Integrated Report 2021 focuses on the invisible corporate value (value of intangibles) of the Shinsei Bank Group, with a focus on human capital. There are five key words for expressing this invisible corporate value. These five key words are linked to one another, and we would like to introduce their relevance here.

The concept of the Medium-Term Strategies, which started in fiscal 2019, is "Redesigning Finance." The Five key words Shinsei Bank Group is a hybrid comprehensive financial 1 5 group with bank and nonbank financial functions. We aim to unbundle the financial functions of the Group and develop new Diversity and Inclusion Redesigning Finance niche markets that respond to underserved customer needs Leading to Proactive with conventional financial services and products. One of the basic Dialogues strategies in our Medium-Term Strategies is to develop new markets 2 4 by providing products and services in collaboration with external partners and to “grow through value co-creation.” This initiative is supported by Value Capability human resources, organizations, and systems that have diverse experience and Co-Creation know-how. These basic abilities that support the Shinsei Bank Group's businesses 3 are collectively referred to as capabilities, and "enhance/leverage our capabilities" is another basic strategy for the Medium-Term Strategies. In order to develop new Underserved products and services that are not in the world today, it is important to have a variety of Customer Needs experiences and values (diversity) and inclusions that allow people to recognize each other's diverse values and respect each other's opinions. The Integrated Report 2021 visualizes the diversity and inclusion organizational culture that leads to proactive dialogues.

Bloomberg Participation in Initiatives ESG Index THE INCLUSION OF SHINSEI BANK, LIMITED IN ANY MSCI Gender- INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, Principles for Financial Womenʼs Empowerment Equality Index United Nations Global Compact 30% Club Japan MSCI SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT Action for the 21st Century Principles (WEPs) CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF SHINSEI BANK, LIMITED BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Principles for Responsible Equator Principles The Poseidon Principles Semi-Nadeshiko Kurumin Gan (cancer) Ally Award Banking Awards and Accreditation

Task Force on Climate-related Financial Disclosures (TCFD)

22 Shinsei Bank Integrated Report

Disclaimer

• The preceding description of the Shinsei Bank Groupʼs Medium-Term Strategies contains forward-looking statements regarding the intent, belief and current expectations of our management with respect to our financial condition and future results of operations. These statements reflect our current views with respect to future events that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results may vary materially from those we currently anticipate. Potential risks include those described in our annual securities report filed with the Kanto Local Finance Bureau, and you are cautioned not to place undue reliance on forward-looking statements.

• Unless otherwise noted, the financial data contained in these materials are presented under Japanese GAAP. The Shinsei Bank Group disclaims any obligation to update or to announce any revision to forward-looking statements to reflect future events or 4-3, -muromachi 2-chome, Chuo-ku, developments. Unless otherwise specified, all the financials are shown on a consolidated basis.

Tokyo 103-8303, Japan • Information concerning financial institutions and their subsidiaries other than the Shinsei Bank Group are based on publicly available information. TEL: 81-3-6880-7000 • These materials do not constitute an invitation or solicitation of an offer to subscribe for or purchase any securities and neither this URL: https://www.shinseibank.com/english/ document nor anything contained herein shall form the basis for any contract or commitment whatsoever.