19 Effects of Novel Coronavirus (COVID-19) Outbreak

The novel coronavirus (COVID-19) outbreak is having a serious impact on Okinawa’s economy with businesses being suspended in the tourism sector, which is the major industry of Okinawa Prefecture, and events being cancelled and postponed. The Okigin Group has also had to partially reduce the scale of its operations in order to prevent the spread of the virus, placing top priority on the safety of its customers and employees. We will implement all possible safety measures for our employees so that they can continue to provide customers with services that they can use with peace of mind. We will promptly announce the impact on our profits and losses as soon as it becomes clear.

Effects on the market environment Risk of increased allowances due to changes in terms and conditions as Financial industry a result of the spread of COVID-19

Tourism industry etc. Risk of profit decline due to prolonged business suspension

Effects on the Group

Financial industry Risk has not materialized at this point.

Tourism industry etc. We will actively provide support based on government policies.

20 Environment Surrounding the Group

Opportunities Threats One of the few prefectures with a growing  Growing and lingering effects of COVID-19 population (the only prefecture with a  Intensified competition due to entry from natural increase in population) External other industries (such as FinTech) Warm subtropical climate (which environment  Over banking, Other banks’ expansion into supports winter tourism) the prefecture Receives the largest number of cruise ships in Japan.

Strengths Weaknesses

 The only comprehensive financial service  Low ratio of fees and commissions group in the prefecture to owns a compared to other banks Internal securities subsidiary. (There is a room for improvement.) environment  High capital ratio compared to other  The ratio of real estate in loans at a regional banks in the prefecture bank is high (There is a room for  Stable increase in major customers development in business feasibility evaluation).

21 Competitive Advantage of Okinawa’s Ideal Location

With major Asian cities within range of 4 hours, located in the heart of East Asia

2018 Ranking of freight volume by airport Freight volume (t) Rank Airport Annual Daily average 1 Narita International 2,221,334 6,086 Airport 2 Tokyo International 1,271,143 3,483 Airport 3 Kansai International 828,662 2,271 Airport 4 Naha Airport 340,880 934 5 Fukuoka Airport 250,798 688 6 Chubu Centrair 214,434 588 International Airport 7 New Chitose Airport 195,381 536 8 Osaka International 127,957 351 Airport 9 Kagoshima Airport 28,961 80 10 Komatsu Airport 18,856 52

Source: Ministry of Land, Infrastructure, Transport and Tourism, Source: Okinawa Prefecture Asian Economic Strategy Initiative Report on Management Conditions at Airports

22 Profile of Okinawa Prefecture

Rate of natural increase/decrease in Rate of change in population Regional brand survey population

(%) (%) (Points) Rate of Rank Prefecture Index Rank Prefecture Attractiveness Rank Prefecture change 1 Okinawa 2.0 1 Tokyo 7.1 1 Hokkaido 61.0 2 Tokyo -1.1 2 Okinawa 3.9 2 Kyoto 50.2 3 Aichi -1.3 3 Saitama 2.7 3 Tokyo 43.8 4 Shiga -1.6 4 Kanagawa 2.4 4 Okinawa 40.4 5 Kanagawa -2.0 5 Aichi 2.1 5 Kanagawa 34.5 6 Saitama -2.5 6 Shiga 1.1 6 Osaka 32.9 7 Fukuoka 7 Chiba 0.8 -2.6 7 Nara 30.0 8 Chiba 8 Osaka -0.4 -3.0 8 Fukuoka 29.6 9 Fukuoka -0.7 9 Osaka -3.1 9 Ishikawa 25.4 10 Kyoto -3.1 10 Hyogo -3.6 10 Nagano 24.8 National average -2.2 National average -3.8 Source: Statistics Bureau, Ministry of Internal Source: Brand Research Institute, Inc., Source: Statistics Bureau, Ministry of Internal Affairs and Affairs and Communications of Japan, Regional Brand Survey 2019 Communications of Japan, Population Estimates Population Estimates

23 Population of Okinawa (Future Prospects)

The population of Okinawa is expected to take a downward turn in and after 2030 Population is on the increase at this stage, but active steps towards population growth are being taken now

(in thousands) 2,500 Population trends in Okinawa Efforts to facilitate natural increase in (2100) population 2,030 (2050) 2,000 (2035) 1,620 1,4461,446 (2017)(2017) 1,540

ProjectedProjected populationpopulation 1,500 curvecurve basedbased onon riskrisk scenariosscenarios Efforts to enhance growth of society

1,000

(2100) 500 840 Aims to revitalize isolated islands and depopulated regions 0 2013 2014 2015 2016 2017 2018 2020 2025 2030 2035 2040 … 2060 … 2080 … 2100 Projected Population Projected future population: National Institute of Population and Social Security Research

(in thousands) 2015 2020 2025 2030 2035 2040

Okinawa 1,434 1,460 1,468 1,470 1,466 1,452

Japan 127,095 125,325 122,544 119,125 115,216 110,919

24 Number of Visitors to Okinawa

Number of tourists visiting Okinawa in FY2019 was 9.46 million. Effects of the COVID-19 outbreak. The number of overseas tourists was 2.49 million (down 17.0% YoY).

Trends in the number of visitors and tourism revenues

(¥ million) (persons)12,000,000

1,000,000 10,000,000

800,000 8,000,000 Number of visitors to Ocean Expo Park TargetTarget forfor FY2021 600,000 4.93 million 6,000,000 FY2021 12,000,00012,000,000

400,000 4,000,000 NumberNumber ofof visitorsvisitors inin FY2019FY2019 9,460,0009,460,000 (down(down byby 530,000530,000 YoY)YoY) 2,000,000 200,000

0 0 (fiscal year) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ･･･ 2021 ･･･

Japanese visitors Overseas visitors Tourism revenue Number of visitors to Shurijo Castle Park Source: “Tourism Overview,” Okinawa Prefecture 2.79 million

25 Housing Market Trends in Okinawa

• Housing market in Okinawa remains strong • According to the national census 2015, growth rate of population and number of households are both the highest in Japan

Number of new housing starts by housing type Total number of households in Okinawa

Owner-occupied 660,000 20,000 House for rent 654,128 Company-owned Condominiums and detached housing 650,000 18,000 Total 643,056 16,618 16,803 16,201 16,591 15,426 16,136 15,098 640,000 16,000 632,826 1,829 2,258 2,614 2,077 1,933 41 1,339 630,000 14,000 25 30 52 211 621,790 163 2,791 620,000 12,000 158 610,129 610,000 10,000 600,573 10,772 600,000 10,914 10,726 11,135 11,263 8,000 11,282 9,227 590,000 591,269 6,000 580,000 4,000 570,000

2,000 3,976 560,000 3,148 3,170 3,103 3,018 2,696 2,922

0 550,000 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2018

Source: Okinawa Prefectural Government, Department of Planning, Municipal Source: Ministry of Land, Infrastructure, Transport and Tourism, Statistics of Housing Starts Administration Division

26 Economic Trends in Okinawa (1)

BOJ Tankan Overview BOJ Tankan Business Confidence DI ◆The COVID-19 outbreak has had a widespread 50 effect on the prefectural economy. National average

Okinawa 40 ◆It has had a widespread effect also on personal consumption.

30 ◆It has had a widespread impact also on tourism.

20 ◆In terms of public investment, performance is solid.

10 ◆Capital investment is increasing.

◆Residential investment has remained weak. 0

-10

Source: BOJ Naha Branch

27 Economic Trends in Okinawa (2)

Official land prices

Residential land prices Overview (%) 11.0 10.0 ◆ Okinawa Average residential land prices in Okinawa increased 9.0 by 9.5%, after increasing 8.5% in the previous year 8.0 Fukuoka and continue to trend upward. There is growing housing 7.0 National average 6.0 demand due to an increase in population and low interest 5.0 rates, which is considered to be a factor for a continuous 4.0 3.0 rise in residential land prices. Residential land prices in 2.0 Itoman City and Yomitan village have also increased due 1.0 to an increase in the number of people seeking housing in 0.0 the suburbs. However, much remains unclear as to what (1.0) (2.0) impact the COVID-19 outbreak will have on land prices. 2016 2017 2018 2019 2020 Commercial land prices (%) 15.0 14.0 13.0 Okinawa ◆Average commercial land prices in Okinawa increased 12.0 Fukuoka 11.0 by 13.3%, after increasing 10.3% in the previous year 10.0 National average 9.0 and continue to trend upward. There is wide-ranging 8.0 demand for commercial land in construction of hotels, 7.0 6.0 drug stores, restaurants and other facilities, due to 5.0 4.0 growing demand for tourism. As with residential land, 3.0 2.0 much remains unclear as to what impact the COVID-19 1.0 will have on commercial land prices. 0.0 (1.0) (2.0) 2016 2017 2018 2019 2020

Source: Ministry of Land, Infrastructure, Transport and Tourism 28 Economic Trends in Okinawa (3)

Employment situation Overview Trends in unemployment rates ◆In the past, Okinawa suffered nearly 1.5 times the (%) unemployment rate of the national average, but the rates 6.0 have steadily fallen, becoming closer to the national level.

Difference 5.0 Okinawa National average 4.0 Active opening ratio

（times） 1.20 3.0 1.15 1.10 2.0 1.05 1.00 0.95 1.0 0.90 0.85

0.0 0.80 2016 2017 Mar. 2018 Mar. 2019 Mar. 2020 0.75 0.70 0.65 0.60 Mar. 2016 Mar. 2017 Mar. 2018 Mar. 2019 Mar. 2020

Source: Ministry of Health, Labour and Welfare, Okinawa Labour Bureau 29