Greetings from President

To shareholders

We would like to express our sincere gratitude for your continuous support to our company.

During the fiscal year ended March 31, 2026, the Japanese economy kept showing a gradual recovery partly due to improvement of the employment and income environment and the effect of various government policies. However, in addition to the continued price increase, there are some risks that could push down Japan's economic momentum due to fluctuations in financial markets and economies in various countries, including the impact of the situation in the Middle East. The impact of those factors on consumer spending and financial markets needs to be closely monitored.

In the domestic business, we promoted measures to accurately grasp funding demands of customers, and additional use of existing customers remained strong. Combined with the impact of the depreciation of the yen, the receivables outstanding increased by 7.3% year-on-year to 2,911.4 billion yen on a consolidated basis. In the loan and credit card business, amid persistent strong demand for funds, we strove to expand the business. GeNiE Inc., a consolidated subsidiary promoting embedded finance, has achieved alliances with 29 companies in total by the end of March 2026 since the launch of the services. In the guarantee business, we have worked to deepen communication with existing partners and strive to develop new partners. We started a guarantee partnership with THE MORTGAGE CORPORATION OF JAPAN, LIMITED, Resona Bank, Limited, Saitama Resona Bank, Limited, Kansai Mirai Bank, Limited, AEON Bank, Ltd., and PayPay Bank Corporation in 2025, as well as with TOMATO BANK, LTD. in April 2026. In the overseas financial business, we have worked to attract new customers and maintain credit quality, focused on EASY BUY Public Company Limited in the Kingdom of Thailand, which accounts for the majority of the business.

Consolidated operating revenue for the fiscal year ended March 31, 2026 increased to 337.7 billion yen (up 6.3% year-on-year), operating profit increased to 100.3 billion yen (up 71.4% year-on-year), and profit attributable to owners of parent increased to 79.6 billion yen (up 147.9% year-on-year). The major reasons for the increase in profit, in addition to an increase in operating revenue, were reduced operating expenses attributable to reduced provision for bad debts thanks to improved quality of loans, and provision for loss on interest repayment that was lower than expected.

With regards to shareholders returns, our basic policy is to "aim to achieve sustainable enhancement of corporate value, maintain financial soundness, enhance profitability and firmly maintain stable and continuous dividends to shareholders." For the fiscal year ended March 2026, we plan to revise and increase the year-end dividend to 12 yen per share (up 2 yen from the dividend forecast released on May 12, 2025), and to pay a total annual dividend of 22 yen per share, after comprehensively taking into account the current financial situation and the full-year business performance.

For the fiscal year ending March 2027, we plan to pay 11 yen per share for interim and year-end each and for a total annual dividend of 22 yen.

For the fiscal year ending March 2028, the final year of the medium-term management plan that began in the fiscal year ended March 2026, the Group has targeted a total of 3,279.6 billion yen in receivables outstanding, 366.5 billion yen in operating revenue, and 100.4 billion yen in operating profit. We aim to achieve an equity ratio of approximately 23% with guaranteed receivables included in the total consolidated asset, a dividend payout ratio of approximately 50%, and a ROE of around 10%.

To meet the expectations of our shareholders, we will continue to work closely with each of the MUFG Group companies to maximize our corporate value through sustainable growth and to become a corporate group that contributes to society.

I humbly ask for your ongoing support as we embrace the challenges for the future.