Investor Presentation: Five Keys for Resona to Attain Sustainable - PowerPoint PPT Presentation

Investor Presentation: “Five Keys” for Resona to Attain Sustainable Growth March 2014 1. In some pages of this material, names of Resona Group companies are shown in the following abbreviated forms: RHD: Resona Holdings, RB: Resona Bank 2. Negative figures represent items that would reduce net income

CONTENTS Investment Highlights Strong Regional Franchises and Resona Group at a Glance P4 Population and Economic Scale of Resona’s Primary Operating Base P5 1 Unique Business Model “Retail×Trust” Business Model Well Suited for Japan’s Aged Society P6 Supporting Sustainable Growth P7 Well-established Competitive Edge as Pioneer of Reforms in Customer Service Stable Earnings Trend and High Profitability P9 Stable Earnings Supported by Sound Balance Sheet P10 2 Sound Balance Sheet Loan Portfolio, Interest Margin and Cost to Income Ratio P11 P12 Operational Reforms Aimed at Simultaneously Enhancing Revenue and Reducing Costs P14 Loan Volume Growth Business Portfolio Positioned to Realize Loans to SMEs and Wealthy Individuals P15 3 the Direct Benefits of “Abenomics” Housing Loans P16 Financial Product Sales to Individuals P17 Cross-selling Culture P19 Upside Potential for Earnings Growth Cross-selling Strategy (1) Trust Solutions as Gateway to Cross-selling P20 4 through Cross-Selling P21 Cross-selling Strategy (2) Housing Loans as Gateway to Cross-selling Cross-selling Strategy (3) Cross-selling towards Potential Client Segments P22 Repayment Efforts Entering the “Final Stage” to Complete Full Repayment P24 Repayment Efforts Entering the “Final P25 Outline of “Public Funds Full Repayment Plan” and Progress to Date 5 Stage” to Complete Full Repayment P26 Mitigating and Eliminating “Two Concerns” relating to RHD’s Common Shares Direction of Resona’s Capital Management P27 Reference Material Business Results for 1-3Q Period of FY2013 Other Reference Materials Macro Economic Trend 1

Investment Highlights Strong Regional Franchises and Unique Business Model Supporting 1 Sustainable Growth Stable Earnings Supported by Sound Balance Sheet 2 Business Portfolio Positioned to Realize the Direct Benefits of 3 “Abenomics” 4 Upside Potential for Earnings Growth through Cross-Selling Repayment Efforts Entering the “Final Stage” to Complete Full 5 Repayment 2

Investment Highlights Strong Regional Franchises and Unique Business Model Supporting 1 Sustainable Growth Stable Earnings Supported by Sound Balance Sheet 2 Business Portfolio Positioned to Realize the Direct Benefits of 3 “Abenomics” 4 Upside Potential for Earnings Growth through Cross-Selling Repayment Efforts Entering the “Final Stage” to Complete Full 5 Repayment 3

Resona Group at a Glance 1  Resona focuses management resources on Tokyo and Kansai metropolitan areas and retail banking business  Resona Group is the largest retail-focused bank with full-line trust capabilities in Japan with a well-established customer base comprising approx. 13 million retail accounts and approx. 90 thousand corporate clients Corporate Structure Franchise Value (End of September 2013) Number of Branches: 592 Total active retail 3 accounts: （ End of September 2013 ） Consolidated Total Assets JPY 43.1 tn (US$441.1 bn *1 ) Approx. 13 million JPY 24.5 tn (US$250.7 bn *1 ) Trust Assets Tokyo 6 Corporate loan Kansai Metropolitan Saitama Resona Kinki Osaka Resona Bank clients: region area Bank Bank 1 8 Total Assets: JPY27.3 tn Approx. 276 293 Trust Assets: JPY24.5 tn Total Assets: JPY11.9 tn Total Assets: JPY3.7 tn 90 thousand 5 The largest retail-focused bank with full-line trust capabilities in Japan Market Share Number of Manned Branch Office 50% (End of September 2013) (End of March 2013) 50% (Number of office) 45.9% Loans Deposits *2 *2 41.1% 600 609 40% 593 40% 30% 30% 300 19.2% 18.2% 20% 20% 222 8.9% 10% 10% 4.5% 4.5% 4.1% 0 *3 Resona Group Average for 3 Average for 10 0% 0% *3 megabank groups largest regional bank Tokyo Osaka Kanagawa Saitama Tokyo Osaka Kanagawa Saitama *4 groups *1. 1USD=JPY97.75 *2. Total of group banks, market share based on deposits, and loans and bills discounted by prefecture (domestically licensed banks from BOJ) 4 *3. FY2012 Financial Statements, Resona Group: total of group banks, Megabank groups: BTMU+ MUTB, Mizuho BK+ Mizuho CB +Mizuho Trust, SMBC *4. 10 largest regional bank groups by consolidated assets (Yokohama, Fukuoka FG, Chiba, Hokuhoku FG, Shizuoka, Yamaguchi FG, Joyo, 77 Bank, Hokuyo HD, Nishinippon City, FY2012 Financial Statements)

1 Population and Economic Scale of Resona’s Primary Operating Base  Prefectures where Resona’s franchise is concentrated account for more than 30% of Japan’s population and GDP  Such prefectures are comparable to some countries in terms of GDP Prefectural GDP in USD Compared Prefecture Population *1 Prefecture GDP *2 With Other Nation’s GDP *2 10.4% Tokyo 13.2 1,272 Australia 18.4% 1,064 Tokyo 7.1% Kanagawa 9.1 1064 Tokyo 7.3% Osaka 425 Total Total 6.9% Osaka 8.9 38.4 Korea 1015 6.4% Aichi 369 2,071 （ 30.1% ） （ 35.7% ） 5.8% Aichi 7.4 Netherlands 779 6.0% Kanagawa 347 5.7% Indonesia 710 Saitama 7.2 4.1% Saitama 235 4.9% Chiba 6.2 Switerland 528 3.8% 222 Chiba 425 4.4% Osaka Hyogo 5.6 3.7% Hokkaido 215 4.3% Norway 418 Hokkaido 5.5 3.7% Hyogo 214 4.0% Austria 379 Fukuoka 5.1 3.6% Fukuoka 211 Kanagawa 347 2.9% 3.7 Shizuoka 3.2% Shizuoka 184 319 2.3% Thailand Ibaraki 2.9 2.3% Ibaraki 131 312 2.2% Denmark 2.8 Hiroshima 2.2% Hiroshima 126 Saitama 235 2.1% Kyoto 2.6 1.9% Kyoto 109 Portugal 229 1.8% 2.3 Niigata 1.7% Niigata 100 Ireland 207 1.8% Miyagi 2.3 1.7% Miyagi 94 0 500 1000 0 5 10 15 0 500 1,000 (USD bn) (mn) (USD bn) *1. Source: Ministry of Internal Affairs and Communications, Population estimates (As of October 1 st , 2012) 5 *2. Source: Cabinet Office, Government of Japan, Gross Prefecture Product FY2010 “Global comparison of gross prefecture product in dollar”

1 “Retail × Trust” Business Model Well Suited for Japan’s Aged Society Advantage as Commercial Bank with Trust Capabilities Demand Associated with Rapidly Aging Society  Over JPY 500tn will be transferred to the next generation over the next 10 years *3 Retail Customer Base of Full-line Trust Functions Commercial Bank <Expanding inheritance market> (JPY tn) Inheritance, Approx. 13 million 55 Business succession active individual clients Real estate mediation Approx. 90 thousand 50 corporate loan clients Will trust 45 592 manned Corporate pension branch offices 40 35 30 Resona has a strong base of elderly customers 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 < Resona’s active clients / population *1 > < Balance of saving amount per household SME owners are concerned about smooth successions (excluding single dwellers) *2 >  < Change in age of self-employed owners *4 > (JPY mn) 15% 53% (60 or older) 12.8% 25 12.0% 22.49 21.97 100% 23% 70 or older 20 9.3% 16.75 10% 80% 60’s 15 60% 10.33 10 50’s 5% 40% 5.67 40’s 5 2.81 20% 30’s Under 30 0 0% Under 30's 40's 50's 60's 70 or 0% 50's 60's 70 or 30 older 1979 1987 1997 2007 2012 older years *1. Clients / population: As of Mar. 2013 (Total of group banks), population by age: Population Estimates by Age (Statistical Bureau) (As of Apr. 1, 2013) 6 *2. Source: Ministry of Internal Affairs and Communications “Family Income and Expenditure Survey” *3. Source: Nomura Institute of Capital Markets Research *4. Source: Ministry of Internal Affairs and Communications “Employment Status Survey” and The Small and Medium Enterprise Agency “White Paper on Small and Medium Enterprises in Japan”

1 Well-established Competitive Edge as Pioneer of Reforms in Customer Service  Resona has achieved higher customer satisfaction through service reforms, which have resulted in enhancing the service level in branches Enhancing Customer Satisfaction <Resona’s “Service Reform”> <Results of “Service Reform”> Nikkei 10th annual financial institutions ranking (January 2014) More branches Open until 17:00 open on weekends on weekdays Customer satisfaction and holidays Highest among major banks 5 Saitama Resona Bank “Next generation” 9 Resona Bank “Zero” innovative 10 Shinsei Bank waiting time 12 Shizuoka Bank branch offices 13 Mitsubishi UFJ Trust and Banking 15 Bank of Tokyo-Mitsubishi UFJ New marketing 18 Sumitomo Mitsui Banking Corporation 24-hour channel customer open 365 days call center Customer satisfaction by age group (50’s): a year No.1 among all Japanese banks 1 Resona Bank Improvement of hospitality by proactive Improvement of hospitality by proactive 2 SBI Sumishin Net Bank recruitment and promotion of women recruitment and promotion of women 3 Shinsei Bank 4 Sumitomo Mitsui Trust Bank 5 Japan Post Bank 7

Investment Highlights Strong Regional Franchises and Unique Business Model Supporting 1 Sustainable Growth Stable Earnings Supported by Sound Balance Sheet 2 Business Portfolio Positioned to Realize the Direct Benefits of 3 “Abenomics” 4 Upside Potential for Earnings Growth through Cross-Selling Repayment Efforts Entering the “Final Stage” to Complete Full 5 Repayment 8