KYUSHU FINANCIAL GROUP (7180) Corporate presentation summary

Efforts to enhance corporate value

• Focused on transforming regional challenges into growth, targeting higher ROE and PER through value co-creation and sustainable investments.

• Achieved record-high earnings for FY2025, with gross business profit of ¥129.9B and net income of ¥37.6B.

• Raised dividend payout target to 35% and approved a ¥12.0B share repurchase for FY2026.

• Executed growth investments in human capital, sustainability, and digital transformation.

• Management is increasingly conscious of cost of capital and share price, aiming for ROE of 6.0% in FY2027 and 9.0% under the next plan.

Medium-term management plan and vision

• The 4th Medium-Term Management Plan, "Leap Forward," emphasizes regional value co-creation and sustainable growth.

• Strategic pillars include expanding new businesses, strengthening core businesses, and establishing a solid management foundation.

• The 2030 vision targets consolidated net income of ¥50.0B and a shift toward value co-creation businesses.

• Most KPIs related to regional communities, customers, and employees were achieved, supporting sustainable regional growth.

Financial performance and forecasts

• FY2025 saw five consecutive years of revenue and profit growth, with ROE rising to 5.4%.

• Net income increased by 24% YoY, driven by higher loan interest and securities gains.

• FY2026 net income is forecast at ¥45.0B, with ordinary income expected to reach ¥650B.

• Loan and deposit balances increased steadily for both individuals and corporations.