Announcement Regarding the Resona Group's Purpose, Long-Term Vision and New Medium-Term Management Plan

May 12, 2023

Resona Holdings, Inc

Resona Holdings, Inc. (President: Masahiro Minami) hereby announces the establishment of the Resona Group (hereinafter the "Group") Purpose and Long-Term Vision. The Company also announces the establishment of a new medium-term management plan (MMP) that aims to accelerate initiatives to realize "Retail No. 1" and covers a three-year period starting from FY2023. Details are as follows.

In 2023, the Group marks 20 years since its receipt of public funds in accordance with the Deposit Insurance Act and the launch of "Resona's reform". We completed repayments of said public funds which is over three trillion yen in 2015, and take on the challenge of reform remains integral to our "DNA" . To date, we practice a management approach that is backed by our unwavering commitment to living up to the trust of regional communities and retail customers while growing in tandem with them.

In Japan, the society is currently going through a phase of profound structural transition, including the trends towards Sustainability transformation　(hereinafter "SX") / Degital transformation (hereinafter "DX"), and that are expected to ever more diverse issues confroting our customers as well as regional societies require ever more sophisticated solutions.

However, regardless of changes in society and emvironment , the Group is determined to maintain a fundamental stance of "Customers' happiness is our pleasure" and we aim to contribute to society to a greater degree than ever before and thereby enjoy mutual growth with all stakeholders.

We will strive to ensure that lessons we have learned over the course of 20 years since the launch of Resona's reform are passed down to the next generation. At the same time, we will take a step forward toward taking on new challenges to realize "Retail No. 1." To cralify our way to proceed,we hereby establish our Purpose and Long-Term Vision as well as Long-Term Sustainability Indicators with FY2030 set as the target year. Moreover, we have set the direction of our long-term strategies as "Corporate Transformation(CX) to transform our conventional business structure and management platforms." In addition, our formulation of the new MMP was undertaken using a backcasting approach based upon this direction.

The three-year period of the new MMP is defined as "the first 1,000 days of taking on CX for accelerating initiatives to realize "Retail No. 1". Throughout this period, we will strive to further improve our value creation capabilities, and develop next-generation management platforms, in order to adapt to changes in light of such trends as SX, DX, etc and further accelerate income and cost structure reforms.

1. Long-term ideals regarding what the Resona Group should look like

• The Group marks 20 years since the launch of Resona's reforms. We ensure that our DNA " the challenge of reform" are passed down to the next generation, while accelerating initiatives to realize "Retail No. 1" .
• Our customers as well as regional societies are expected to ever diverse issues requiring ever more sophisticated solutions in the phase of profound structural transition, including the trends towards SX/DX. And our Group operations have been characterized by our strong focus on the retail field and the use of our multi-regional structure.
• While this has enabled us to take a meticulous approach finely tuned to meeting the needs of regional communities in business, we are now facing a challenge arising from the inherently high-cost structure of our retail businesses, and gaps between income and cost structure.
• We need to step forward toward CX to transform our conventional business structure and management platforms to remain true to our fundamental stance of "Customers' happiness is our pleasure" and contribute to society to a greater degree.
• For CX, we will strive to further improve our value creation capabilities to better address the issues of customers and regional societies, and we will develop next-generation management platforms capable of supporting our ability to create and deliver diverse value and aligning the Group with changes.
• Through these long-term pursuit, we are aimining for sustainable improvement in social and corporate value and to realize Retail No.1.

2. Establishment of Purpose, Long-Term Vision

• We aim to deliver solutions to various issues via the creation of new value that transcends the conventional framework of financial services even as we take full advantage of strengths we have long nurtured in the field of finance. Moreover, we aspire to contribute to society to an ever greater degree in order to become the "Solution Group" most supported by regional societies and retail customers. To codify these underlying concepts supporting the Group's operations, we hereby establish our Purpose and Long-Term Vision.
• We have positioned the newly established Purpose as the cornerstone of business management along with our Corporate Mission, which has long been cherished by the Group. We have also clarified our Long-Term Vision. We will thus rally the Group's overall capabilities to pursue forward-looking and long-term CX.

Purpose

• In everything we do we are committed to starting by addressing issues confronting our customers and society. This clarifies how we contribute to society at present and in the future.
• The concept of Purpose is below

In a world that keeps changing, we're here to provide peace of mind so that we can welcome the future with hope and confidence.

To achieve this, we think beyond the framework of finance to address different challenges alongside each region.

At Resona, we persistently strive towards reform and creativity for a brighter future - one that is hopeful and reassuring, just as it is exciting.

Corporate Mission

• This is basic to our conduct that have long been cherished by the Group and beliefs that is upheld by its leaders, as well as by the entire workforce, with regard to what we aim to be in society.
• We are strongly determined to preserve and uphold our Corporate Mission and thereby ensure that lessons learned through the "Resona Shock" are always remembered.

Long-Term Vision

• This vision is built on the Purpose and Corporate Mission, which together serve as our cornerstone.
• Determined to remain a specialist in serving regional communities and retail customers, we have refreshed our commitment to this vision, which we have held since our founding.

3. Medium-Term Management Plan (MMP)

Ⅰ.Period of the MMP

• FY2023 to FY2025 (April 1, 2023 to March 31, 2026)

Ⅱ.Positioning of the MMP

• The MMP period is positioned as the "first 1,000 days of taking on corporate transformation (CX) for accelerating initiatives to realize "Retail No. 1"
• In line with the MMP, we will focus adapt to changes in light of such trends as SX, DX, etc, and further accelerate income and cost structure reforms.
• To realize these, we will enhance our value creation capabilities by pursuing the further development of business operations backed by our traditional strengths that we have nurtured in the course of specialization in the retail field and facilitating taking on new challenges in this area. We will also pursue thoroughgoing, integrally reforms of foundations while developing next-generation management platforms via the further enhancement of the consolidated management of Group companies.

Ⅲ.Key Performance Indicators(KPI)

• For the final year of the MMP, we have set the KPIs presented below.

Ⅳ.Strengthening of Value Creation Capabilities

Further Development and New challenges

• We will step up the allocation of human resources, investment and capital in our areas of business focus, building on our ongoing efforts under the previous MMP. By doing so, we will enhance our ability to facilitate the circulation of businesses and assets as well as the transition of social structure.
• Specifically, we will enhance the consulting services we provide along with loan, business succession and other services for SMEs in terms of both quality and quantity while further improving our financing capabilities in this field.
• We will leverage the combined capabilities offered by all Resona Group companies (customer bases and service, functions). Moreover, we will also expand our tech- and data-driven framework for delivering value to a broader range of recipients in such operations as cashless payments, DX and asset formation support.

Co-creation and Expansion of Value

• We will expand the scope of strategic alliances by increasing the volume of inorganic investment and employing our financial digital platform, which enables the Resona Group and other financial institutions as well as partners from different sectors to engage in the co-creation of value. In these ways, we will expand to customer base, management resources and external functions while making our own available to partners.

Ⅴ.Development of Next-Generation Management Platforms

• We will promote the thoroughgoing updating of human resource composition as well as business processes, channels, systems and governance measures in order to secure the capabilities needed to provide diverse value as well as flexibility and agility required to adapt to changes. As part of these integrally reforms, we will reinforce human resources to be allocated to and step up investment in the DX field.

Ⅵ.Capital Management

• We will strive to improve our corporate value by utilizing capital to execute growth investment and enhance the content of shareholder returns even as we maintain soundness. In addition, we will aim for an ROE of 8% as an indicator for capital profitability.

Soundness

• We will maintain our capital adequecy ratio at a sufficient level in light of currently applicable domestic standards. To secure conformity with international standards, we will also maintain our Common Equity Tier 1 (CET1) capital ratio in the 10% range (based on the full enforcement of the finalized Basel 3 regulations; excluding net unrealized gains on available-for-sale securities).

Growth investment

• In addition to strengthening lending and other solutions to help our customers address issues they are confronting, we will carry out inorganic investment to enhance customer base, management resources and our functions.

Shareholder returns

• We will continue to deliver a stable dividend stream while aiming to raise our total shareholder return ratio to around 50%.

4. Long-Term Sustainability Indicators

• To accelerate our initiatives to support sustainable improvement in social and corporate value, we have additionally set indicators to be achieved by the end of FY2030.
• We will strive to become a company capable of contributing to the enhancement of diverse value for multi-stakeholders through the resolution of issues confronting customers and society as a whole, with all employees committed to playing their part to that end.

Detail of New Indicators

Value Creation Capability Indicator

• Our customers, as well as society as a whole, are now facing ever diverse issues requiring ever more sophisticated solutions. With this in mind, we have established a Value Creation Capability Indicator to measure our effectiveness at creating and delivering a variety of solutions to these issues. Having set a long-term target of doubling this indicator, we will facilitate initiatives to improve the value we deliver to customers and society through diverse aspects of our operations.

Well-Being Indicator

• As our Group employees are expected to play key roles in the updating of our value creation initiatives and platforms, we are keenly aware that helping them find fulfillment in both work and private life is essential. Based on this awareness, we have identified the long-term target of raising this indicator in order to facilitate initiatives that improve value for employees.

Our declaration of our aim to achieve net-zero greenhouse gas (GHG) emissions from our investment and financing portfolio with interim targets for the energy sector

• We hereby declare that we will reduce the volume of GHG emissions from our investment and financing portfolio to net zero by 2050 even as we continuously pursue our established carbon neutrality target regarding emissions from the Group's own energy use.
• As part of efforts to achieve above-mentioned targets in 2030, we have identified interim targets for the emissions of our borrowers and investees in the energy sector. Electric power is every basis of industry and life, and we are aware of decarbonized for energy sector is essential for retail customers that have the majority of the investment and financing portfolio.
• We will realize carbon neutrality with the aim of empowering the regional communities in which the Group is based via supporting more promotion of renewable energy and power generator that address the transition and innovation.