P.29 Message from the CFO

29 01. Value Creation Stories for the Future

Message from CFO Closing stock price, high/low stock prices, and related indicators

*1 Stock prices have been adjusted retrospectively to reflect a 4-for-1 share split effective July 1, 2026. *2 Total shareholder return (TSR): The rate of return on an investment assuming dividends are reinvested

Medium-Term Management Plan 2026: Challenges and Countermeasures

In FY2025, interest-bearing liabilities increased as a result of major investments, leading to a higher net D/E ratio. By further accelerating asset replacement, we aim to bring interest-bearing liabilities and leverage back to their levels at the end of FY2024 by the end of FY2028 at the latest, while maintaining the momentum of our business portfolio transformation. Assets targeted for replacement are selected not only based on exit criteria under our ROIC/WACC management framework but also from a growth perspective. We have already begun the divestment process for many of these assets. At the same time, growth investments are also essential to achieving stable and sustainable growth. Going forward, we will continue making annual growth investments of ¥400.0 billion–¥500.0 billion by carefully selecting opportunities from our pipeline, with a primary focus on those that strengthen businesses with “core-strength” where we have competitive advantages.

Aiming to deliver further profit growth and enhance corporate value

With only six months remaining in Medium-Term Management Plan 2026, I expect many of you are already turning your attention to our growth from FY2027 onward. Through our business portfolio transformation, we have improved the quality of our assets, with company-wide ROIC reaching 8% and ROE approximately 13%̶above our cost of capital. While there are various methods for calculating the cost of capital, we believe that consistently achieving an ROE of 12% or higher will enable us to exceed our cost of capital and create value. That said, we do not consider our current ROE to be sufficient, and we intend to continue raising it to a higher level. We will continue to achieve sustainable profit growth, focusing on our eight growth areas where we have strengths and competitive advantages. At the same time, we will work to grow profits and improve ROE by promoting DAIS and asset-turnover-based businesses while rapidly transforming our business portfolio. We will discuss DAIS in greater detail later in this report, but I would like to highlight that we have set a quantitative target of improving ROIC by one percentage point through DAIS. This target reflects our commitment to achieving organic profit growth and improved profitability without relying solely on asset expansion. p.30 Special Feature: DAIS

Shareholder returns

In July 2026, we completed a 4-for-1 share split. By lowering the stock price per investment unit, we aim to increase the liquidity of our shares, welcome more shareholders, and, through your continued support, further enhance our corporate value. With respect to shareholder returns, we plan to pay an annual dividend of ¥40.00 per share in FY2026 (post-share split) and have also authorized ¥80 billion in share repurchases, including ¥10 billion allocated as additional shareholder returns for FY2025. Looking ahead, we will continue to enhance shareholder returns through stable profit growth.

Shareholder returns and share split

July 2026: 4-for-1 share split

Annual dividend per share (yen) Share repurchases (billions of yen) Total annual dividend (billions of yen) Profit/loss for the year (billions of yen) Total payout ratio

￥80.0 billion share repurchase authorized (announced on May 1, 2026)

Consolidated payout ratio: 30% DOE range method Total payout ratio: 40% or higher & Progressive dividend payments*5

*3 Annual dividend of ¥40 per share (post-share split) *4 Repurchase completed on February 19, 2026; shares cancelled on April 10, 2026 (excluding 1 million shares expected to be used for share compensation) *5 Dividends to be maintained or increased