Performance Results Fiscal Year Ended March 31, 2006 April 27, 2006 - PowerPoint PPT Presentation

Asset Management Highlights ① Continuously expanding the scale of asset management SBI actively established new funds related to IT and bio-technology, enterprise revitalization, and the new core segment of real estate. In addition to investment trust and related consulting businesses, the Group as a whole saw the scale of asset management expand to 560 billion yen by the end of the current term. ② Excellent management performance As previously established funds enter their period of redemption, dividends are accumulating smoothly. For funds under management at the end of the current term, total dividends are 81.8 billion yen. During the next year, SBI plans to distribute an additional 200 billion yen in profits. � The current value of net assets of the IT Fund at the end of March 2006 is 277.5 billion yen, which is 1.8 times greater than the initial investment. From 2004/1 to 2006/3, the investment amount of 22 companies that went public from the IT Fund increased by 6.2 times. � The current value of net assets of the SBI/LBO Fund #1 at the end of March 2006 is 9.5 billion yen, which is 1.9 times greater than the initial investment. For the same term, the Enterprise Revitalization Fund #1 is worth 15.4 billion yen, which is 1.5 times greater than the initial investment. As the Mezzanine Fund gained name recognition, loan proposals increased in the fourth quarter by 66% compared to the same period in the previous year. � Unlisted Stock Funds I and II were redeemed at two times their initial base price. Unlisted Stock Fund I was awarded top honors by the Lipper Fund Awards Japan 2006.

Current Fund Management Scale for SBI Group (Current from end of 2006/3) Total amount: 559 billion yen Total amount: 559 billion yen IT Fund: 245.9 billion yen IT Fund: 245.9 billion yen IT Bio Fund IT Bio Fund BB Fund: 51.3 billion yen BB Fund: 51.3 billion yen Bio Fund: 9.9 billion yen Total: 373.4 billion yen Bio Fund: 9.9 billion yen Total: 373.4 billion yen Others: 66.3 billion yen Others: 66.3 billion yen LBO Fund: 6.1 billion yen LBO Fund: 6.1 billion yen Buyout Mezzanine Fund Buyout Mezzanine Fund Enterprise Revitalization Fund: 9.6 billion yen Enterprise Revitalization Fund: 9.6 billion yen Mezzanine Fund: 11 billion yen Mezzanine Fund: 11 billion yen Total: 27.5 billion yen Total: 27.5 billion yen Others: 800 million yen Others: 800 million yen Investment trust: 96.6 billion yen Investment trust: 96.6 billion yen Investment trust, investment consulting Investment trust, investment consulting Investment consulting: 22.2 billion yen Investment consulting: 22.2 billion yen Total: 123 billion yen Total: 123 billion yen Investment corporation: 4.2 billion yen Investment corporation: 4.2 billion yen Real Estate Fund Real Estate Fund Real estate: 26 billion yen Real estate: 26 billion yen Development proposals: 9.1 billion yen Development proposals: 9.1 billion yen Total: 35.1 billion yen Total: 35.1 billion yen Note: Figures for the Real Estate Fund represent the amount of investment. Figures for investment trust and investment consulting represent the current value of net assets at the end of December 2005. Figures for other funds represent the current value of net assets based on the account settlement closest to December 2005 for each fund.

Management Funds and Distribution Performance By the end of March 2006, SBI distributed a total of 81.8 billion yen in profits from six funds. (Unit: 100 million yen) Fund Total SBIH total distribution receipts IT Fund 1,505 575 (196) Contents Fund 94 94 (50) SBI/LBO Fund #1 50 47 (21) Enterprise Revitalization Fund #1 104 91 (54) VR Enterprise Revitalization Fund 10 9 (-) SBI Mezzanine Fund #2 83 2 (1) Total 1,846 818 (322)

Performance Estimates of Main Funds (Unit: 100 million yen, %) Fund Total distribution Net IRR total (Including estimate) IT Fund 1,505 2,508 8.3 SBI/LBO Fund #1 50 108 18.1 Enterprise Revitalization Fund #1 104 197 25.4 VR Enterprise Revitalization Fund 10 19 27.4 Total 1,669 2,832 - Note: The net internal rate of return (IRR) indicates a figure after deducting for management and contingency fees.

i) Softbank Investment Corporation

IT Fund Conditions By the end of March 2006, the current value of net assets had risen smoothly to 277.5 billion yen. 2,775 (Unit: 100 million yen) 2,500 1.8 times 2,000 1,611 Unrealized profits 1,500 Cash (Including total distribution) 1,000 Investment balance 794 1,505 6 years 500 370 0 2000 End of 2006/3

Performance of Planned IPOs (IT Fund) SBI anticipates further gains in unrealized profit and actual profit. (Unit: 100 million yen) 665 500 462 Estimated profit: 333 370 129 X 3.6 times Investment book value of 129 21 planned IPOs 250 Balance of unsold amount 186 from 9 completed IPOs 186 55 17 70 other companies (Investment book value: 0 5.5 billion yen X 0.3) SBI 2006/3 end estimated amount Investment balance

Performance of IPO Investment Targets (IT Fund) From 2004/1 to 2006/3, the investment amount of 22 companies that went public from the IT Fund increased by 6.2 times. (Unit: 100 million yen) 2,212 2,000 6.2 times 6.2 times 1,500 Unrealized profit 1,611 1,000 186 500 Unsold principal of stock that has gone public 415 Actual sales amount 359 0 Investment amount 2006/3 end in 22 companies

Content Fund Which Has Already Redeemed Its Principal As the Contents Fund enters its harvest period, 1) it will have a cash distribution of 9.4 billion yen, which is equivalent to the principal, and 2) it will have a contingency fee of 700 million yen. 124 Management fees: 3.4 billion yen after deductions (Unit: 100 million yen) (Including contingency fee of 700 million yen) 100 Total distribution 94 Current value of net assets 8.5 years Prospective sales 50 94 Companies expected on planned IPO issue to have an IPO • Alibaba.com Corporation • TeraRecon, Inc. 37 30 11 X 3.4 times Planned IPO (Applying the most recent trading price) 11 0 issue 1997/7 2006/2 end Redemption time

IPOs and M&As (Total for Direct Investments and All Managed Funds) As of 2006/3/31 Already public Planning to go public ※ To 2004/12 2005/1 to 2005/12 2006/1 to 2006/12 Already public and 77 companies 12 companies Note 20 companies planning to go public (38 foreign) (1 M&A) On 2006/4/6, Golf Do Co., Ltd. went public on the Centrex Market of the Nagoya Stock Exchange. Increase rate Public offering Public offering 06/4/18 Final price Increase rate First price / Book Company name IPO period First price (B) (%) price / Book price (A) (C) (%) (C/A) value (Times) (B/A) value (Times) Apr 170,000 407,000 239.4 351,000 206.5 0.5 1.1 Gold Do Co., Ltd On May 31, SBI Futures plans to go public on the Osaka Hercules Stock Exchange. Two other companies have filed applications to go public. Note: Companies expecting an IPO undergo a five-stage investment evaluation based on examination meetings held weekly. The top prospects are included here, but Softbank does not guarantee a prospective IPO company will go public. • The number of IPOs and M&As represent the ones that have already been transacted.

ii) SBI Capital Co., Ltd.

LBO Fund and Enterprise Revitalization Fund Principal redemption is nearly complete. SBI/LBO Fund #1 Enterprise Revitalization Fund #1 Limited Liability Investment Partnership (Unit: 100 million yen) (Unit: 100 million yen) Current 100 200 9.5 billion yen Unrealized profit 4 Unrealized profit Current Total distribution Total distribution 15.4 billion yen Cash Cash 40 150 Investment balance Investment balanace 47 Initial Initial 50 10.4 billion yen 5 billion yen 91 10 50 100 30 67 34 50 40 17 30 23 10 0 0 2005/4 2005/5 2001/5 2006/3 2002/2 2006/3 Fund settlement Fund settlement Establishment Current Establishment Current time time

SBI Mezzanine Fund At the end of March, the Mezzanine Fund had an investment balance of 5.8 billion yen. As the Fund gained name recognition in the fourth quarter of FY 2005, investment proposals increased by 66% compared to the same period in the previous year. With the formation of Shinginko Tokyo and the Metropolitan Enterprise Revitalization Fund (#3 Fund), full-scale management operations will begin from June. Total fund management in the mezzanine segment is 11 billion yen, which is well above our target of 10 billion yen. SBI Mezzanine Fund Investment Balance

iii) SBI Asset Management Co., Ltd.

Accumulating Management Assets at SBI Asset Management Management assets are expanding as more and more new products are being offered. (Unit: 100 million yen) Investment consulting 1,230 Established 2005/2 Investment trust Investment corporation 222 69.5% Up 1,000 Established 2005/7 726 210 125.4% Up Established 2005/10 966 500 322 40 473 Established 2005/12 234 48 44 42 0 2005/3 end 2005/9 end 2006/3 end

Redemption on the Outstanding Performance of Unlisted Stock Funds I and II Lipper Fund Awards Japan 2006 Lipper Fund Awards Japan 2006 Most Excellent Fund Award Most Excellent Fund Award Unlisted Stock Fund I (Redeemed) Unlisted Stock Fund I (Redeemed) (The final redemption price will be decided in May.) 2000/7 2000/7 Management start Management start 2006/3/3 2006/3/3 Redemption date Redemption date As of 2006/3/2 As of 2006/3/2 21,208 yen 21,208 yen Base price Base price Unlisted Stock Fund II (Redeemed) Unlisted Stock Fund II (Redeemed) 2001/6 2001/6 Management start Management start 12/10/12 12/10/12 Redemption date Redemption date 19,660 yen Final redemption price 19,660 yen Final redemption price

(3) Securities Business

Securities Highlights I. E*TRADE Securities recorded the highest ever consolidated operating profit (60.2 billion yen, up 122% from the same period in previous term) and consolidated ordinary profit (30 billion yen, up 165% from the same period in the previous term). The rate of consolidated ordinary profit in the fourth quarter was 53.7% (56% non-consolidated). ① In FY 2005, the number of new accounts was 575,035. By the end of March total accounts topped 1.16 million. Client assets at the end of March were 95.8% higher than the same period in the previous term at 4.58 trillion yen. ② With a rock-solid firm customer base, individual brokerage turnover share for the FY 2005 full term climbed to 23.1%. For the fourth quarter, it was 24.9%. Total brokerage turnover share, which includes institutional investors, surpassed 10% for the first time in the fourth quarter. ③ There were 94 IPO underwritings, which is the most ever in a term. ④ For this period, we are planning a per-share dividend of 4,800 yen (before taking account of a stock split), which is over two times the 2,300 yen dividend (including commemorative dividend) of the previous period. (1,600 yen after taking account of a stock split on 2006/1/2) II. Revenues and profits of SBI Securities increased sharply with operating revenue of 16 billion yen (up 50% from the same period in the previous term) and ordinary profit of 8.1 billion yen (up 181% from the same period in the previous term). III. On April 21, SBI Futures was approved for listing on the Osaka Hercules Stock Exchange. Listing is planned for May 31.

E*TRADE Securities: FY 2005 Consolidated Performance (Unit: Million yen, %) Compared to FY 2004 FY 2005 same period (2004/4 to 2005/3) (2005/4 to 2006/3) in previous year +121.6 Operating revenue 27,174 60,213 Net operating +123.7 25,180 56,317 revenue +170.1 Operating profit 11,112 30,011 +165.2 Ordinary profit 11,343 30,077 +174.7 Current net profit 6,178 16,970

Business Model of Increasing Returns and Ordinary Profit Rate by Quarter (Non-consolidated: 56%) E*TRADE ordinary profit rate 53.7 ％ （ % ） (Figures are consolidated from the first quarter of FY 2005 and on.) 60.0 52.1 50.0 47.4 46.1 42.7 40.6 38.7 38.3 38.3 40.0 33.7 30.5 30.0 22.7 20.0 10.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY 2003 FY 2004 FY 2005 Note: Calculated using ordinary profit divided by operating revenue.

Account Comparison for Main Online Securities Companies Accounts of five main online securities companies Account trend of five main online securities companies E*TRADE (Accounts) (2004/3 to 2006/3) (Accounts) (Current from end of 2006/3) 1,167,778 1,200,000 1,167,778 1,200,000 Accounts increased by 2 times for the 1,150,000 12 months from 2005/4 to 2006/3. The 1,100,000 1,100,000 By this month, account gap with #2 Monex Securities 1,050,000 expanded by 1.8 times over one year. accounts are expected to exceed 1.2 million. 1,000,000 Beginning from October, E*TRADE 1,000,000 acquired a record number of new 950,000 accounts for five consecutive months. 900,000 900,000 From October, E*TRADE acquired an 850,000 average of 65,053 new accounts per month, which is two times the monthly 800,000 average from April to September. 800,000 750,000 700,000 Monex 700,000 650,000 631,548 Rakuten 631,548 600,000 552,816 550,000 Matsui 600,000 552,816 517,521 500,000 517,521 Kabu.com 450,000 475,425 500,000 475,425 400,000 350,000 400,000 300,000 250,000 300,000 200,000 150,000 100,000 200,000 Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar E*TRADE Monex Rakuten Matsui Kabu.com 2004 2005 2006 Source: Public documents from each company's website. Note: Monex Securities and Nikko Beans are totaled as Monex. On January 1, 2006, Kabu.com Securities merged with MeNet Securities.

Brokerage Turnover for Main Online Securities Companies 4Q FY 2005 (1 billion yen) Brokerage turnover for 5 main online securities companies Turnover 30,000 (1Q FY 2005 to 4Q FY 2005) E*TRADE: 27,809 25,000 20,000 15,000 Rakuten: 13,373 Matsui: 10,752 10,000 Monex: 8,154 Kabu.com: 6,340 5,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY 2003 FY 2004 FY 2005 Source: Public documents from each company's website. Note: Monex Securities and Nikko Beans are totaled as Monex. Kabu.com Securities merged with MeNet Securities in January 2006.

Individual Brokerage Turnover Share for Main Online Securities Companies Same period comparison over last 3 years (Term: 2005/ to 2006/3) 4Q 24.9% FY 2005 FY 2003 FY 2004 (2005/4 to 2006/3) (2003/4 to 2004/3) (2004/4 to 2005/3) Five main Five main Five main Others online online online Others Others 40.4 ％ Securities securities Securities 42.6 ％ 50.9 ％ companies companies companies 57.4 ％ 49.1 ％ 59.6 ％ 21.1 ％ 23.1 ％ E*TRADE 15.2 ％ E*TRADE E*TRADE Matsui Securities 13.1 Rakuten Securities 11.1 Matsui Securities 12.2 Rakuten Securities 11.3 Matsui Securities 10.0 DLJ (Rakuten Securities) 9.5 Monex 8.7 Monex 8.0 Monex 7.5 Kabu.com 5.4 Kabu.com 5.2 Kabu.com 4.6 Source: Tokyo Stock Exchange statistical data, JASDAQ statistical data, and public documents from each company’s website. Note: Individual brokerage turnover is totaled from three exchanges (sections one and two) and JASDAQ. Monex Securities and Nikko Beans are totaled as Monex. Kabu.com Securities merged with MeNet Securities in January 2006.

Brokerage Turnover Comparison for Big Three Securities Companies Share of commissions Brokerage turnover for each company for the 4Q FY 2005 (3Q FY 2005 for companies other (Billion yen) than E*TRADE, Matsui, Daiwa SMBC, and Daiwa) 30,000 Total share 28,371 (10.68%) 25,000 in 4th Quarter Nomura: 19,279 (7.26%) tops 10%! 20,000 15,000 Overtake Nomura in 4Q FY 2004. Matsui: 10,752 (4.05%) 10,000 Daiwa SMBC: 9,440 (3.55%) Nikko City: 7,509 (2.83%) Daiwa: 6.184 (2.33%) 5,000 Nikko Cordial 2,623 (0.99%) 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY 2002 FY 2004 FY 2005 FY 2001 FY 2003 (Unit: 1 billion yen. Figures in parentheses indicate each brokerage turnover share as a percentage of total turnover in the three markets. Source: Figures are based on public documents from each securities company and the Tokyo Stock Exchange. (Figures for E*TRADE include orders from overseas investors.)

Basis Comparison for Main Online Securities Companies Basis comparison for five main online securities companies (Basis) (FY ended March 31, 2006) (Brokerage commission / Brokerage turnover) 14 Reference Note 11.7 12 9.9 9.1 10 8 Note 5.5 6 4.8 4 2 0 Note Note E*TRADE Kabu.com MBH Matsui Rakuten Source: Prepared by SBI using settlement of account documents from each company. Note: For Matsui and Rakuten, the fiscal year ends December 31, 2005.

Client Asset Trend Compared to previous year (100 million yen) +95.8% Compared to previous year Compared to +49.4% previous year +65.9% Compared to Compared to previous year previous year +90.1% +114.5% Source: Public documents from each company's website. Note: Monex Securities and Nikko Beans are totaled as Monex. Kabu.com Securities merged with MeNet Securities in January 2006. Figures for Matsui Securities are for the end of February in the FY ended March 31, 2006 (the end of March in the FY ended March 31, 2005).

Margin Trading Account Comparison for Main Online Securities Companies Margin trading accounts of five main Margin account comparison online securities companies with Matsui Securities (Margin accounts) (Current from end of 2006/3) (2004/3 to 2006/3) E*TRADE: 115,611 (Margin accounts) 120,000 115,611 115,000 Brokerage turnover share 105,000 E*TRADE has 9.9% of total in individual margin trading* 100,000 accounts as of the end of (FY 2005) March (Matsui: 13.7%). 95,000 E*TRADE: 27.5% In the future, after gaining Matsui: 14.4% some experience, we expect 80,000 85,000 more and more novice 71,154 investors to establish Matsui: 71,154 75,000 margin accounts and to begin trading. 60,000 54,250 65,000 42,554 41,700 55,000 40,000 45,000 20,000 35,000 25,000 0 r y r y r l p v n l p v n a a a a u a u o a o a e e M J M J M M N M N S J S J E*TRADE Matsui Rakuten Kabu.com Monex 2004 2005 2006 Source: Public documents from each company's website. Note: Monex Securities and Nikko Beans Securities are added together as Monex. Kabu.com Securities merged with MeNet Securities in January 2006. Note *: Brokerage turnover in individual margin trading is totaled from three exchanges (sections one and two) and JASDAQ.

Financial Revenue Expansion (Million yen) 15,000 13,230 Financial revenue Financial balance (Revenue - Expenses) 9,334 Financial revenue 10,000 128% increase 5,803 Financial balance 5,000 3,809 145% increase 0 FY 2004 FY 2005 (2004/4 to 2005/3) (2005/4 to 2006/3)

IPO Underwriting Performance E*TRADE Securities Underwriting Comparison IPO stock underwriting performance (Listing date base) (Underwritings) (Underwritings) 100 350 94 330 90 87 #1 Online 300 80 Securities 257 Company 70 (FY 2005) 250 60 202 50 200 42 38 38 162 40 150 30 23 20 100 8 10 50 0 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 E*TRADE Monex Matsui Rakuten Source: Public documents at each company. The data is from the first day of online trading for each company to March 31, 2006 (Listing date base). Note: Figures do not include agency transactions and real estate investment trust.

Reinforce Online Securities Trading System As trading volume expands sharply, strengthen the system even further. In December 2005, capacity was enhanced three times greater than the original system infrastructure introduced in July 2003. By July 2006, capacity will be further enhanced to handle two million accounts (four times greater than the original system). There is already ample leeway to enable a stress-free trading environment. 2006/7 Total securities accounts and system capacity 2-million (Accounts) account capacity 2006/5 2,000,000 1.75-million account capacity 1,800,000 1,600,000 2005/12 1,400,000 1.5-million 2004/12 1,200,000 account capacity 1-million account capacity 1,167,778 1,000,000 Note: The account growth arrow is a forecast. 800,000 777,455 600,000 592,743 400,000 452,493 200,000 9月 3月 9月 3月 6月 9月 2004 2005 2006

E*TRADE Korea Outlook In FY 2005, E*TRADE Korea wiped away its accumulated losses and made preparations for listing on the KOSDAQ market. FY 2005 performance outlook (Million yen) • The lowest online commission rate in Korea (Stock: 0.024%) • Online investment consulting (video, audio, chat) 5,202 Operating revenue 1,182 Operating profit Stock capitalization: 56 billion Korean won Investment ratio: 87% 1,189 Ordinary profit Employees: 101 Accounts: 96,711 922 Profit of current term (Current from end of 2006/3)

SBI Securities: Full Term Non-consolidated Performance (12 Months) (Unit: Million yen) FY 2005 FY 2005 FY 2004 FY 2004 Compared to Compared to Full term Full term Full term Full term same period in same period in previous year (%) previous year (%) (2005/4 to 2006/3) (2005/4 to 2006/3) (2004/4 to 2005/3) (2004/4 to 2005/3) Operating Operating １６，０６２ １０，６７１ １６，０６２ ５０．５ １０，６７１ + ５０．５ + revenue revenue Operating Operating １９７．８ ２，７０１ ８，０４６ ８，０４６ + １９７．８ ２，７０１ + profit profit Ordinary Ordinary １８１．４ ２，９０６ ８，１７９ + １８１．４ ２，９０６ ８，１７９ + profit profit Current net Current net ７１．６ ６，４８２ + ７１．６ ３，７７７ ３，７７７ ６，４８２ + profit profit

SBI Securities Fourth Quarter Non-consolidated Performance (3 Months) (Unit: Million yen) FY 2005 FY 2005 FY 2004 FY 2004 Compared to Compared to same period in same period in 4th quarter non- 4th quarter non -consolidated consolidated 4th quarter non 4th quarter non- -consolidated consolidated previous year (%) previous year (%) (2006/1 to 2006/3) (2006/1 to 2006/3) (2005/1 to 2005/3) (2005/1 to 2005/3) Operating Operating ４，３５６ ２，４４９ ４，３５６ ７７．８ ２，４４９ + ７７．８ + revenue revenue Operating Operating ３５４．４ ５１６ ２，３４５ ２，３４５ + ３５４．４ ５１６ + profit profit Ordinary Ordinary ３３９．７ ５３５ ２，３５６ + ３３９．７ ５３５ ２，３５６ + profit profit Current net Current net ３２．６ １，５０３ + ３２．６ １，１３４ １，１３４ １，５０３ + profit profit

Total Net Assets of Main Investment Trusts (Jnext and Jcool) (100 million yen) Total net assets at the end 900 Investment consulting company: Hirotaka Usabi of Angel Japan of each month from 2005/2 Asset Management Co., Ltd. provides consultation services. to 2006/3 800 Trust management company: SBI Asset Management 700 Jcool: Newly established 600 Net Assets Net increase 500 Tops 80 billion yen (14-month performance) 400 Jnext: Newly established 300 200 100 0 Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- 05 05 05 05 05 05 05 05 05 05 05 06 06 06 J next J cool

Launch Agency Sales System through Merger of Underwriting Business with E*TRADE Securities After reorganization After reorganization (from 2006/2) (1) Sales (1) Sales (1) Sales Issuer Issuer (2) Change (2) (2) Underwriting Underwriting Underwriting (3) Agency sales (3) Sales (3) Sales (4) Sales (4) Sales Customer Customer Customer Customer After reorganization E*TRADE and SBI Securities work independently on underwriting sales to increase their own share. After Change reorganization When E*TRADE obtains underwriting order, as a managing underwriter, it will commission SBI Securities to sell a fixed ratio of those issues. Move to the new system from February 2006. Already from February to March, the new agency sales system has handled 15 accounts.

SBI Futures IPO On April 21, 2006, SBI Futures was approved for listing on the Osaka Hercules Stock Exchange. Schedule Approval date: 2006/4/21 Tentatively set price range: 2006/5/10 Demand forecast period: 2006/5/12 to 2006/5/18 Set IPO price: 2006/5/19 IPO date: 2006/5/31 Establishment date: 2000/10/13 Business content: Commodity transaction outsourcing through the Internet and call centers. Business type, code: Securities and commodities futures transactions, 8735

(4) Financial Services

Financial Services Highlights I Centered around E-Loan and InsWeb, the market place business had 62.5% more estimate inquiries compared to the previous term. From the end of last term, 10 new websites opened and page-view growth reached 150 million views per year. II At SBI Mortgage, the Flat 35 Loan (a securitized loan from the Government Housing Loan Corporation) business grew rapidly. The execution balance at the end of March topped 200 billion yen. III At Morningstar from January to March 2006, ordinary profit expanded by 3.1 times compared to the same period in the previous term. (1) The rising price of media services helped Internet advertising sales to expand by 4.8 times compared to the same period in the previous term. (2) At Gomez Consulting, sales related to website design consultations grew by 60% compared to the same period in the previous term. IV At SBI VeriTrans, transactions increased by 47% compared to the previous term. Sales and ordinary profit recorded the highest levels ever. V At SBI Equal Credit, the loan balance reached 9 billion yen 16 months after the start of business.

Growing Marketplace Business The number of transactions and users are expanding smoothly. The number of companies participating has increased to 1,300. Both financial and non- Both financial and non -financial sectors are healthy. financial sectors are healthy. (Unit: Page view) The count for transactions and users indicates the number of unique visitors to the website to Annual page views obtain a total estimate, a document request, or a provisional application. 800,000 150 million 173,250 page views Transactions and users 700,000 158 million 62.5% increase page views Non-financial sector 600,000 compared to previous term 173,250 500,000 54,393 400,000 70 million 300,000 625,256 page views Financial sector 200,000 436,748 625,256 34 million 100,000 page views 321,570 0 2003/4-2004/3 2004/4-2005/3 2005/4-2006/3 Note: Page views include views at six financial and 11 non-financial websites. Figures here do not include page views for the E-golf service website (14 million page views per month).

The Largest Financial Comparison Website in Japan The mobile finance business and the number of transactions and users are expanding smoothly. InsWeb Insurance Portal E-Loan Participants: 20 nonlife insurance Participants: 70 financial institutions with 560 companies and 13 life insurance companies types of loan products Completed automobile insurance estimates Provisional loan applications Compared to same Compared to same (Unit: Estimate) period in previous year (Unit: Application) period in previous year 120,000 38.5% increase 32.4% increase 500,000 100,000 400,000 80,000 300,000 60,000 487,603 106,697 200,000 351,929 80,553 40,000 277,342 100,000 44,228 20,000 0 0 2003/4-2004/4 2004/4-2005/3 2005/4-2006/3 2003/4-2004/3 2004/4-2005/3 2005/4-2006/3

Fast Growth for SBI Mortgage's Home Loan Business (100 million yen) Home Loan execution balance 2006/4 Tops 210 billion yen 2,000 2006/3 end 2006/3 end 2006/3 2006/3 Tops 200 billion yen Tops 200 billion yen Execution balance Execution balance 206.2 billion yen 206.2 billion yen 1,500 2005/12 2005/12 Tops 150 billion yen Tops 150 billion yen 2005/8 2005/8 Tops 100 billion yen Tops 100 billion yen 1,000 2004/12: Start handling Super Flat 35 (Government Housing Loan Corporation) 500 0 9月 12月 3月 6月 9月 12月 3月 6月 9月 12月 3月 6月 9月 12月 3月 6月 ９月 12月 3月 2005 2001 2002 2003 2004 2005 2001 2002 2003 2004 2006 2006

Super Flat 35 Interest Rate Comparison Super Flat 35 is a securitized long-term loan with a fixed rate of interest. Based on low-cost operations and a customer-centric philosophy, SBI can offer the lowest interest rate in the industry for this type of loan. Interest (%) 3.100 3.050%: Mitsubishi Tokyo UFJ Bank Average rate: 3.048% 3.000 2.980%: Mitsui Sumitomo Bank 2.950%: Mizuho Bank 2.900 Interest rate for 2006/4 Each financial institution has its own commission rates. When borrowing from SBI Mortgage, the handling commission is 2.1% against the loan 2.800 amount. From 2006/4/1 to 2006/4/30, for a 35- year loan of 30 million yen with repayment of interest and principal in equal installments and without advance repayment, the effective annual interest rate was 2.845%. 2.700 2.701% 2.701% SBI Mortgage Source: Compiled by SBI from information SBI Mortgage available on the Government Housing Loan Corporation website.

Morningstar Consolidated Performance (3 Months) (Unit: Million yen) FY ended 2006/12/31 FY ended 2005/12/31 FY ended 2006/12/31 FY ended 2005/12/31 Compared to same Compared to same 1st Quarter 1st Quarter 1st Quarter 1st Quarter period in previous period in previous year (%) year (%) (2006/1 to 2006/3) (2006/1 to 2006/3) (2005/1 to 2005/3) (2005/1 to 2005/3) ２９３ ４３８ Sales ２９３ ４３８ +49.4 Sales +49.4 Operating Operating ６０ ６０ +112.3 +112.3 １２８ １２８ profit profit Ordinary Ordinary ６１ ６１ １８９ １８９ +209.8 +209.8 profit profit ３６ ３６ １５８ １５８ +337.7 +337.7 Current net Current net profit profit

Morningstar Consolidated Sales Comparison by Product Internet advertising, which has a high profit rate, expanded by 4.8 times compared to the same period in the previous year. 1Q FY 2005 1Q FY 2006 (2005/1 to 2005/3) (2006/1 to 2006/3) Internet advertising 6.7% Internet advertising 21.3% Individual stock, fund report Investment education, 21.9% consulting Investment education, 53.5% consulting Individual stock, 61.0% fund report 16.3% Custom data 10.4% Custom data 8.9%

Morningstar Offer Asset Management Bulletin at Japan Post March 2006 • Offer a free magazine in cooperation with sponsors from investment trust management companies. • Distribute 50,000 copies to 575 post offices that sell investment trusts. • The content is easy for investment novices to read and understand. • Product explanations use investment data and graphics. • Japan Post aims for a balance of 4.9 trillion yen (3 times greater than at the start) in investment trust sales by the end of FY 2009. • 2007/10 Privatization: Increase the number of post offices that handle investment trust sales to 1,550 (3 times greater than now).

Morningstar Gomez Consulting Non-consolidated Performance Sales Ordinary (1000 yen) (1000 yen) profit 127,578 140,000 60,000 49,429 120,000 50,000 100,000 90,726 32,608 40,000 80,000 30,000 Compared to Compared to 60,000 previous year previous year 51.6% increase 40.6% increase 20,000 40,000 10,000 20,000 0 0 2005_1Q 2006_1Q 2005_1Q 2006_1Q IPO preparation

Morningstar Sharp Increase in Research Target Websites 2005/3 end: 46 categories (Research target sites: 696) Trend in research target 696 sites websites E-commerce ranking Mobile site ranking 800 Online banking Mobile online banking Online bank and branch Mobile online securities Online securities New! Mobile credit card 696 Online general securities New! Mobile part-time work information 700 Credit card Mobile used car info Commodity futures Mobile concert tickets 603 Overseas tours 600 Domestic tours Overseas air tickets Domestic air tickets Domestic lodging reservations IR site ranking 500 476 New real estate info New! General IR website New! Pre-owned real estate info New! Bank IR Rental real estate info New! Securities IR Real estate subdivision Telecommunications IR 400 Career change info Wholesaler IR 351 Personnel placement Utilities IR Part-time work info Retailer IR Automobile insurance Insurance IR 300 275 Medical insurance Land transportation IR Online shopping Airline IR Online auction IR site ranking Concert tickets 200 Online bookstore FTTH providers Used car info websites 100 Automobile manufacturers Department stores Online cosmetics manufacturers New! Cosmetics manufacturers 0 2001/3 2003/3 2004/3 2005/3 2006/3 Items marked with “New!” entered the ranking in the period from 2006/1 to 2006/3.

Full Term Performance of SBI VeriTrans SBI VeriTrans records the highest ever sales and profits. (Unit: Million yen) Compared to Compared to FY 2005 FY 2005 FY 2004 FY 2004 same period in same period in Full term Full term Full term Full term previous year previous year (2005/4 to 2006/3) (2005/4 to 2006/3) (2004/4 to 2005/3) (2004/4 to 2005/3) (%) (%) Operating Operating 1,916 944 1,916 944 +103.0 +103.0 revenue revenue Operating Operating 221 400 400 +81.0 221 +81.0 profit profit Ordinary Ordinary 225 395 +75.6 225 395 +75.6 profit profit Current net Current net Note 183 Note 253 +38.3 253 +38.3 183 profit profit Note: Net profit for the current term for the third quarter of F Note: Net profit for the current term for the third quarter of FY 2005 included 11 million yen in deferred tax assets as part of Y 2005 included 11 million yen in deferred tax assets as part of a loss a loss brought forward from the last financial year became collectible. brought forward from the last financial year became collectible.

SBI VeriTrans Shop Trend (Number of shops) 1700 The number of shops increased by 86.2% 1500 to 1,881 compared to the previous year. 1200 900 600 300 0 １ Q ２ Q ３ Q ４ Q １ Q ２ Q ３ Q ４ Q １ Q ２ Q ３ Q ４ Q １ Q ２ Q ３ Q ４ Q FY ended 2003/3/31 FY ended 2004/3/31 FY ended 2005/3/31 FY ended 2006/3/31

SBI VeriTrans Transaction Trend (Unit: 1000 transactions) 5,000 The number of transactions increased by 46.8% 4,500 compared to the previous year. 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 １ Q ２ Q ３ Q ４ Q １ Q ２ Q ３ Q ４ Q １ Q ２ Q ３ Q ４ Q １ Q ２ Q ３ Q ４ Q FY ended 2003/3/31 FY ended 2004/3/31 FY ended 2005/3/31 FY ended 2006/3/31

SBI EQual Credit Loan Performance The loan balance topped 9 billion yen 16 months after starting business. • Operations are expected to be profitable on a monthly basis beginning this summer. • Operations are expected to be profitable for the full term ending March 31, 2007. (Unit: Million yen) (Accounts) 10,000 24,000 Current as of end of March 22,000 9,000 Loan balance: 8.965 billion yen 20,000 Loan accounts: 22,313 8,000 18,000 Annual amortization rate: 3.23% 7,000 16,000 6,000 14,000 Loan balance 5,000 12,000 10,000 4,000 Loan accounts 8,000 3,000 6,000 2,000 4,000 1,000 2,000 0 0 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2005 Note: Operations launched on 2004/11/17. 2006

3. Further Develop SBI Group Ecosystem (1) Expand the enterprise ecosystem to support the SBI financial business, which aims to become the largest distributor of financial products in Japan. (2) Form an enterprise ecosystem where the great number of potential synergies with the home real estate business may flourish. (3) Form a system management ecosystem within the Group that can contribute greatly to maintenance and construction.

New Development Stage Based on Mutual Synergies in the Enterprise Ecosystem Financial Synergies Synergy Synergy Synergy Card Processing Home real estate ecosystem System management ecosystem Synergy (SBI real estate on the web)

(1) Expand the enterprise ecosystem to support the SBI financial business, which aims to become the largest distributor of financial products in Japan. ① Collaborate with Sumitomo Trust Bank and establish an Internet bank. ② Jointly establish a nonlife insurance company with Aioi Insurance Co., Ltd. ③ Establish SBI Guarantee Co., Ltd. ④ SBI Card: Obtain a tentative license for MasterCard.

Develop Business through Multi-Faceted Collaboration with Sumitomo Trust Bank (2005/1/17 Announcement) １ ． Harmonize Internet and real assets � E*TRADE Securities becomes a trust agreement agent and a business operations agent for Sumitomo Trust Bank. As soon as the Banking Law is revised, it will become a banking agent of Sumitomo Trust. � E*TRADE Securities provides securities brokerage and business promotion business services on behalf of Sumitomo Trust. � Become mutual distributors of home loan products (SBI Mortgage). ２ ． Merge securities and banking (private) businesses � From Sumitomo Trust, the SBI Group receives products and services related to customer deposits, loans, trusts, and real estate. Sumitomo Trust also provides asset management and inheritance consulting. � From SBI Securities, Sumitomo Trust receives products related to helping customers incorporate unlisted stocks into their portfolios. ３ ． Jointly develop and sell products � Offer the investment trust services that both companies establish and manage (SBI Asset Management). � Jointly establish new investment trusts (Morningstar). � Offer real estate brokerage services to SBI Group customers (SBI Holdings).

Establish Joint Company with Sumitomo Trust Bank (2005/4/3 Agreement) Conduct research and gather information about the market and marketing methods related to the new Internet bank. Multi-faceted collaboration Start-up preparation company for SBI Sumitomo Trust Internet Bank Business content: Outsourcer for research and information related to Internet banking Representatives Chief Executive Officer: Kaichi Tanaka (currently manager of head office at Sumitomo Trust Bank) Executive Vice-President ： : Katsuya Kawashima (currently director at E*TRADE Securities) Head office location: 1-6-1 Roppongi, Minato-ku, Tokyo (currently SBI Holdings head office) Stock capitalization: 4 billion yen Shareholders: SBI Holdings 50%, Sumitomo Trust Bank 50%

Establish Joint Nonlife Insurance Company with Aioi Insurance Cooperation Cooperation New Internet nonlife New Internet nonlife insurance company insurance company Establish joint Customer base of SBI Group venture Support Support Extensive expertise in Internet business Annual execution loans Total accounts 6,000 1.16 million Marketing Largest website in Japan channels for insurance comparisons and estimates Experience, expertise • Nonlife insurance management Registered members • Product development Annual transactions/users 380,000 affluent customers 800,000 people Management infrastructure • Office operations • Call center Investment targets • Damage claim service 255 companies

Establish SBI Guarantee Co., Ltd. SBI Guarantee is a 100%-owned subsidiary engaged in guarantee and related services. The SBI Group aims to expand its business horizons and to develop financial services for affluent customers. To meet increasing demand for different types of transaction services in e-commerce, SBI Guarantee will engage in a wide variety of related services such as surety for settlement of accounts, home rent, and works of art. New company overview SBI Guarantee Co., Ltd. Trade name Location Izumi Garden Tower, 1-6-1, Roppongi, Minato-ku Establishment date February 2, 2006 Paid-in capital 150 million yen, capital reserve of 150 million yen Shareholder structure SBI Holdings Inc. 100% Yoshitaka Kitao, Representative Director & CEO Executives Hidehiko Kobayashi, Representative Director & COO Hiroyoshi Kido, Director

SBI Card: Obtain a Tentative License for MasterCard (Formal license planned for 2006/7) Use Silverlake solutions to issue sophisticated, value-added cards. Issue SBI Principle member Principle member Joint Group Card license license cooperative sub-license New Internet Bank Issue credit card MasterCard International Inc. Users of comparison Sub-license System website Establish outsourcing joint venture Card Processing System Silverlake Group Card company, bank Card processing service outsourcing Obtain MasterCard tentative license Schedule 2006/3 Issue preparation, ICA No. (International bank number) 2006/7 Official approval (Planned) From 2006/9 Start issuing cards (Planned)

Examine New Loan Products Based on Cooperation between SBI Card and SBI Mortgage Through new products such as home equity loans, make it possible to use the card for loan execution and repayment. Collateral assessment amount Fixed rate (%) for collateral • Establish, execute, and manage assessment amount a home equity framework • Raise funds Home equity framework • Collect late payments Card is compatible with free loans. (The equity limit is the balance after subtracting the loan execution amount from the fixed rate of the collateral Home loan balance Home loan balance value.) • Flat 35 • Conversion ("Good Loan") Balance • Issue, process cards • Monthly collection • Card system management Period

(2) Form an enterprise ecosystem where the great number of potential synergies with the home real estate business may flourish.

Build a Strong Enterprise Ecosystem for Home Real Estate Business SBI Holdings real estate business Construction SBI Planners Mansion subdivision Zephyr 2005/8: SBI Partners becomes a subsidiary. 2005/9: Zephyr becomes an affiliate company accounted for by the equity method. Home Real Estate Ecosystem 2006/3: Merger with SBI Partners. 2006/3: Tozai Asset Management becomes affiliate company accounted for by the equity method. Tozai Asset Management SF Reality Real estate securitization Real estate brokerage (SBI real estate network) (Under construction) ZECS Real estate consulting

SBI Real Estate on the Web Buy Build Loan Assess value Repair SBI Guarantee Lifestyle Sell Borrow Home rent guarantee guide Materials bank Home Home rent Sale value Auction Order home renovator Eco-materials search assessment comparison SBI Planners Real estate Home builder Asset value agency Estimates Buying/selling Construction assessment comparison comparison Developed property Information, blog, community Additional services: Home loan, nonlife insurance, moving, home rent guarantee Brokerage, media, other Advertising, affiliates services SBI Real Estate on the Web Members Real estate office network Lifestyle Network Business Head Office Real Estate Business Head Office

Strong Performance of Zephyr Affiliate The real estate subdivision business is operating smoothly. Performance estimates are being revised upward. (Unit: Million yen) Performance estimate for FY 2005 full term (2005/4/1 to 2006/3/31) Current term estimate Change over Previous term performance (2006/4/18 announcement) previous year (%) (Full-term, FY ended 2005/3/31) Sales 95,200 + 41.6 67,209 Ordinary profit 8,100 +60.0 5,062 Current net 4,300 + 58.9 2,706 profit The sale of large- scale properties was strong.

Joint Investment with ZECS in Tozai Asset Management SBI and ZECS are making a joint investment in Tozai Asset Management, who are strong in real estate finance. This investment will help develop mutual real estate solution expertise. For the future, SBI and ZECS are also studying ways to cooperate by taking advantage of each company's strengths. Real estate solution expertise Representative Director & CEO: President: Hiroyuki Hirayama Yoshitaka Kitao Since establishment, the company has been developing its real estate Toward an integrated financial home business and facility group, this investment expresses management business for senior SBI's clear objective of making Financial housing. home real estate a core business. expertise Affiliate accounted for by equity method Affiliate accounted for by 25 ％ equity investment equity method President: Takuichiro Shiro The company concentrates on real estate finance for unlisted companies. Business activities include real estate securitization, asset management, and property management.

(3) Form a systems management ecosystem within the Group that can contribute greatly to maintenance and construction.

Build a System Management Ecosystem E-commerce settlements SBI VeriTrans Silverlake Group Financial IT solutions Card processing service SBI Technology SBI Card Processing Card Processing System Management Ecosystem Traders Financial C4 Technology systems Information security Financial IT solutions SOLXYZ Software development

Strengthen Capital Tie-up with Traders Securities Group • SBIH: 20% holder Total: 25% TDS • SBIT: 5% holder Traders Securities Traders Securities TFS becomes an affiliate 2005/9: 5% holder company accounted for Consolidated Consolidated by the equity method. subsidiary 2006/3: Add 15% subsidiary Capital collaboration TFS 2005/9 2005/9 Traders Financial Systems Traders Financial Systems Hold 5% of TFS Hold 5% of SBIT Financial IT solutions Financial IT solutions Collaboration on strategic Money Look operations HTS Account aggregation service Nikkei 225 Foreign exchange Home trading Merge solutions of two (Integrated processing of transaction system transaction system system financial accounts) companies • High value-added services Financial • Product differentiation institutions • Improved competitiveness Multiple securities companies

Operations and Capital Collaboration with C4 Technology By making use of C4 Technology's information security expertise, SBI can implement C4's security consulting among the 30 main Group companies. With C4 expertise, SBI can build a highly secure information infrastructure, which will help the Group differentiate itself from the competition and raise the level of trust among customers. Stock share: 14% (Potential stock base at end of 2006/3) (When separately using new stock option rights) Information security technology, expertise Individual privacy protection Anti-phishing Server security ・・・・・

Operations and Capital Collaboration with Software Development Company SOLXYZ SBI Holdings has acquired 21.4% of SOLXYZ's stock, which makes SOLXYZ an affiliate company accounted for by the equity method. SBI Holdings and SOLXYZ have agreed to implement an operations tie-up (2006/4). Using SOLXYZ's agile system development power, SBI will be able to speedily develop systems for each Group company. Acquire 21.4% of SOLXYZ, which becomes an affiliate company accounted for by the equity method. Capital collaboration Operations collaboration Work as a core partner to • Concentrate on outsource system • A wealth of financial technology develop for financial institutions. and network expertise develop systems for each SBI • Work as an independent system Group company. • Financial resources integrator. Cooperate on an SOLXYZ M&A strategy.

Establish Joint Corporation with Silverlake Group Establish a joint company as a new entrant in the card processing service business. SBI Holdings and the Silverlake Group have also agreed on joint business management in Japan. SBI Group (SBI Card) Silverlake Group Offer excellent solutions in the same business sectors. Last year: Launched business. Have one company listed in Malaysia and one in Singapore. This summer: Plan to acquire international brand license. Both companies are now applying for public listing. Prepare for full-scale Promote global business development. SBI Group expansion. Establish SBI Card Processing Co., Ltd. Build a firm business base through a brand and as a system management outsourcer in card settlements for credit card companies and banks.

(4) Build an Enterprise Ecosystem to Increase Unrealized Assets in Stocks.

Market Capitalization and Unrealized Profit of Listed SBI Subsidiaries and Affiliate Companies Maintain the market capitalization and unrealized profit related to SBI Group companies and affiliates. (Current as of 2006/3/31) (100 million yen) Market SBI stock SBI investment capitalization of Unrealized profit share (%) amount SBI's share E*TRADE Securities 1 51.2 122 4,358 4,236 50.0 70 152 82 Morningstar 40.6 4 99 95 SBI VeriTrans 21.4 153 206 53 Zephyr SOLXYZ 2 21.4 11 12 1 0.5 100 117 17 Sumitomo Trust Bank C4 Technology 3 （ 14.1 ） 20 27 7 480 4,971 4,491 Total Note 1: On 2006/4/3, the share increased to 53.2% through additional acquisition. Note 2: Figures are calculated using the final price on the acquisition date (2006/4/19). Note 3: These figures are calculated on the assumption that only SBI Holdings exercises its rights on convertible bonds that it holds.

4. Asset Management Expansion in Current Term (1) Collection period starts for IT Fund and Enterprise Revitalization Fund. (2) Establish new funds. (3) Strengthen collaboration with overseas financial institutions. (4) Support venture business between industry and academia.

(1) Collection period starts for IT Fund and Enterprise Revitalization Fund.

Cash Distribution Schedule for IT Funds #1 and #2 Near the end of August 2006, SBI plans to implement a cash distribution to fund investors. Cash distribution per 2006/8 end 100 million yen 2005/8 investment (Planned) (Planned) IT Fund #1 30 million yen 100 million yen 130 million yen IT Fund #2 33 million yen 90 million yen 123 million yen Cash distribution for IT Funds #1 and #2 2005/8 41.1 billion yen SBI total receipts 2006/8 end (Planned) 124.8 billion yen (Planned) 52.7 billion yen Total (Planned) 165.9 billion yen

Effect on Consolidated Performance related to Selling Stock of E*TRADE Securities (Who Hold IT Funds) The impact on profits before taxes for FY ended 2007/3/31 is estimated at 59.8 billion yen. (Unit: 100 million yen) SBI equity as of 3/31 42.4 ％ 3,000 (639 units / 1,505 units) 2,775 2,635 162 Below is the estimated impact on 2,500 consolidated performance in FY ended 2007/3/31 related to the sale of E*TRADE stock. 2,000 1,611 Unrealized profit 1. Sales: 13 billion yen 1,500 Contingency fee: 13 billion 2,262 2. Operating profit: 13 billion yen 1,000 Cash 794 3. Extraordinary gain: 46.8 billion yen (Including accumulated dividend) 500 370 Investment balance 210 0 Note: The above estimate may change at a future date. 2006/3 end 2006/4/3 estimate

Breakdown on E*TRADE Stock Buyers based on IT Funds Breakdown on E*TRADE Stock Buyers based on IT Funds •The fund has been sold to over 150 institutional investors through securities companies. • SBI also made additional purchases and raised its equity ratio. Shareholder ratio Shareholder ratio Before change After change (2006/4/3) Japan U.S. SBI Holdings 51.2% 53.2% 18% 21% Softbank Internet Technology Fund #2 14.4% 0.0% Softbank Internet Technology Fund #1 3.6% 0.0% Asia Europe Softbank Internet Technology Fund #3 1.0% 0.0% 24 ％ 38% Softbank Internet Fund 0.4% 0.0% Others 29.5% 46.8% Institutional investors Institutional investors by country by country

Transfer of Shinwa Scaffolding Company Stock based on SBI Capital Management Fund Below is the estimated effect on consolidated performance for SBI Holdings for FY ending March 31, 2007. Consolidated sales: 8.1 billion yen Consolidated ordinary profit: 6.8 billion yen Overview of target company Stock transfer proposal: 87% IRR Note Trade name: Shinwa Co., Ltd. Representative: Hiroshi Yamada, President 2003/12 Acquire 100% of stock Location: 30-7 Bushi-gawa, Hirata-cho, Kaizu-shi, through management fund. Gifu-ken Business content: Manufacture and sale of • Arrange the internal management system. temporary construction materials • Draw up a management strategy Employees: 92 (As of 2006/3 end) together with company executives. Sales: 10.058 billion yen (2006/3/31 estimate) Operating profit: 1.527 billion yen (2006/3/31 estimate) FY 2005 SBI estimates that Shinwa will achieve its highest ever sales Stock transferred to and profits. Cosmetics Global Holdings Japan Co., Ltd. Note: This figure is before deducting for management and contingency fees.

(2) Establish new funds.

Toward Establishing a New Mobile Fund Invest in companies related to Invest in companies related to mobile communications. mobile communications. Market scale of Internet industry Invest in companies related to Invest in companies related to broadband communications. broadband communications. Mobile Fund Mobile Fund Aim for a total of Aim for a total of Invest in companies related to Invest in companies related to domestic Internet services. 42 billion yen . domestic Internet services. 42 billion yen SBI Broadband Fund SBI Broadband Fund . SBI BB Media Fund SBI BB Media Fund Invest in companies related to Invest in companies related to Softbank Internet Softbank Internet US Internet services. US Internet services. Technology Fund Technology Fund Softben #2 Softben #2 Time Time Ubiquitous Ubiquitous Softbank Ventures Softbank Ventures ’95 to ’ 95 to ’ ’96 96 ’99 to ’ 99 to ’ ’00 00 ’ ’04 to 04 to ’ ’05 05 ‘06 to ‘ 06 to Growth period for Growth period for Growth period for Growth period for Growth period for Growth period for Growth period for Growth period for US Internet industry US Internet industry Japan's Internet industry Japan's Internet industry broadband industry broadband industry mobile and wireless industries mobile and wireless industries Establish Establish Broadband SBI Group SBI Group Broadband Internet Internet Internet Internet Internet Internet fund for US Mobile and wireless Mobile and wireless fund for US investment investment industries Media phase phase industries Media In the future, the SBI Group wants to become active in pension investments. nvestments. In the future, the SBI Group wants to become active in pension i

Unlisted Stock Real Estate Fund Subscription dealers First stage : 15-billion-yen upper limit (Now taking subscriptions) Investor Investor (Partner) (Partner) Second stage: 10 billion yen (Planned) Partner Contract Issuer Issuer SBI Real Estate Outsourcer SBI Real Estate Outsourcer Management LLC (SBI Holdings, Inc) Management LLC (SBI Holdings, Inc) Outsourcing Anonymous contract partnership contract Overview Investment Name: SBI Unlisted Stock Real Estate Fund consulting Manager A Manager B Anonymous Partnership #1 (Quarterly dividend) contract Investment consultant Manager A Manager B Investment consultant (SBIP Hybrid LLC) (Undecided) (Selected as needed) (SBIP Hybrid LLC) (Undecided) (Selected as needed) Informal name: Four-Leaf Clover Investment J-REIT, other Asset management Amount: 15 billion yen upper limit unlisted stock contract Investment Asset manager Asset manager Investment target: (SBI Holdings, Inc) (SBI Holdings, Inc) Over 80% of the anonymous partnership investment money will be Beneficial interest trust indirectly invested in beneficial interest REITs. The other 20% will be indirectly Trust bank Property manager invested in unlisted stocks. Trust bank Property manager Property management contract Distribution policy: In principle, there will be a Property Scheme Trust real estate management dividend each quarter.

SBI Capital Establishes New Fund (1) SBI Capital is establishing a Metropolitan Enterprise Revitalization Fund with ShinGinko Tokyo as the principle investor. New Bank Tokyo LP (Investor) GP (Management company ) 2.5 billion yen (250 accounts) Total: 2.7 billion yen 200 million yen (20 accounts) This fund will support the revitalization of • Lawyer Introduce proposal enterprises who are overburdened with debt that has led to voluntary liquidation, specific • Consultant arbitration, corporate split-up, civil rehabilitation, • Bank or bankruptcy. Metropolitan Revitalization Fund (Limited Liability Investment Partnership) Contribute to the resolution of bad debt in regional institutions and the revitalization of metropolitan • Take charge of debt enterprises. settlements • DIP finance for enterprises going through Audit • Enterprise revitalization civil rehabilitation procedures • Introduce accountants finance • Funds to enterprises at risk of going bankrupt. • Mezzanine investment • Handle loans Audit • Debt factoring corporation • Buyout Enterprises with offices in Metropolitan Tokyo Investment target (small- and medium-sized companies) (2) The fund will be used for value-up investment, targeting small and medium listed stocks in Japan.

(3) Strengthen collaboration with overseas financial institutions.

Establish Capital Ties with Overseas Financial Institutions and Strengthen Cooperation in Financial and Investment Sectors • Establish a joint investment fund with Tamasek of Singapore. China • Establish an office in Beijing with resident employees. • Invest in funds managed by Legend Capital of the Lenovo Group. • Invest in funds managed by the Tata Group. India • Examine how to establish venture capital business with Indian financial institutions. • Sale Indian stock funds in Japan (Under examination). Korea Establish capital ties with influential business partners (Under examination).