Introduction
— “Wasabi” and SURUGA’s DNA

Wasabi, a specialty product that Shizuoka Prefecture takes great pride in, also has much in common with SURUGA’s DNA. I will explain why later, but on a personal level, I am also a great fan of wasabi. Authentic wasabi in particular commands a higher price, but it is the one thing I never economize on. I often grate it myself at home and thoroughly enjoy dishes like wasabi rice or grilled chicken skewers topped with wasabi.
There are several Japanese words that are used verbatim around the world: Karaoke, Kawaii, and Matcha are a few examples. Now, wasabi is one of them. Just as the difference between “tea” and “matcha” has come to be understood worldwide, awareness of the difference between “hon-wasabi” (authentic wasabi) and “horseradish” (Western wasabi) is spreading globally as well.
Much of the tube wasabi we regularly see at the supermarket is actually horseradish dyed green; it is characterized by a strong pungency and a sharp, nose-piercing flavor. Authentic wasabi native to Japan, by contrast, is characterized by an elegant sweetness the moment it touches the palate, followed by a gentle spiciness that spreads afterward.
What matters here is not which is better or worse. What is important is that consumers move beyond judging on price alone, coming to understand, “Even among different varieties of wasabi, they are distinct, so of course the price differs. Therefore, we should use the one that matches the dish.” I believe it is precisely this deepening understanding of essential value that, as a result, has become the driving force expanding the entire wasabi market globally.
Our home prefecture of Shizuoka has a track record of producing numerous star products, including matcha and now wasabi, where customers come to deeply understand the “difference,” discover value that excites them, and, as a result, see the market expand globally. I believe that this set of values, which cherishes the virtuous cycle of “pursuing differences, delivering “Waku Waku” to our customers, and expanding the market,” is closely connected to SURUGA’s DNA, which sets “Creating a Difference” as its management policy.

Previous Mid-Term Business Plan
— Achieving 2x Lending, 3x Profit, 4x Share Price, and 5x Employee Brightness —

The theme we set out under the Previous Mid-Term Business Plan was “the full-scale launch of SURUGA’s return to a growth track.” I believe we achieved this goal.
Looking back on the situation at the outset three years ago, the environment surrounding us was a harsh one. Repayment pressure from loans undertaken in the past (the “Old portfolio”) was high, and even as we built up new lending, we remained unable to escape negative growth in which the balance of loans kept declining. Over these three years, however, we achieved renewed growth—a V-shaped recovery—and were able to put the outlook for the future on solid footing.
New loan disbursements on a non-consolidated basis stood at ¥236.2 billion before the start of the Previous Mid-Term Business Plan (FY2022), but reached ¥452.7 billion in FY2025—or ¥536.7 billion including corporate lending. In other words, we achieved roughly a twofold increase in lending over these three years.
On profit, ordinary profit rose from ¥11.2 billion in FY2022 to ¥34.5 billion in FY2025, more than a threefold increase. Our share price, too, rose more than fourfold by the end of March 2026 compared with just before the start of the Previous Mid-Term Business Plan (end of March 2023). I believe that the business results of the three years of the Previous Mid-Term Business Plan—“2x lending, 3x profit, 4x share price”— demonstrate that SURUGA has firmly returned to a track of renewed growth.
Beyond these business results, there is an even greater achievement that I am most proud of: our employees truly united behind the message “SURUGA’s future is bright,” and put this belief into practice through their daily actions. Following “2x lending, 3x profit, 4x share price,” I can genuinely feel that our employees’ brightness grew fivefold. One particular fact perfectly illustrates this “5x brightness.” Over the three years since the Previous Mid-Term Business Plan began, not a single new graduate hire left the Bank. Given that the turnover rate for new graduates within three years of joining is generally said to be around 30%, I see this result as symbolic of a “bright SURUGA,” and going forward we want to move beyond “brightness” to become “the most exciting bank.”

Management Environment
— Pursuing “Difference” Over Scale. Delivering “Waku Waku” to Our Customers Comes First

At present, the regional bank industry is seeing a rapid wave of consolidation and reorganization aimed at achieving greater scale. Pursuing greater scale brings real benefits, such as lower system costs and improved operational efficiency, and I believe it is a healthy trend for the regional banking industry as a whole that more banks are working to reform their management models with the future in view.
For SURUGA, however, I believe that pursuing “Waku Waku” ahead of scale is what matters most for enhancing the Bank’s corporate value. Our corporate philosophy is: “‘I’m glad you’re here... I’m glad we met...’ This perception is our goal.” To realize this philosophy, we must continue to create a “difference” that is uniquely ours and found nowhere else.
It is not easy to keep creating that “difference” under a management model that pursues efficiency within a homogenized, giant organization built through expanded scale. Rather than following such a model, I believe we can achieve sustainable growth that is distinctly SURUGA’s own by having every employee prioritize “Creating a Difference” and by nurturing a corporate culture in which employees get excited about new challenges.
That said, not prioritizing scale must never mean neglecting the underlying strength, such as management efficiency, that supports us. Sustaining our unique business model requires the underlying strength to support it. We have pursued cost structure reform, and our core expense ratio (OHR), which measures our expenses relative to income, has already fallen to around 50%— a high level of efficiency even within the industry. On balance sheet quality as well, unrealized gains on securities came to a positive ¥37.3 billion at the end of FY2025, and the duration of our domestic bonds was 1.8 years—both reflecting a high degree of resilience in a “world with interest rates.” It is precisely by firmly maintaining this underlying strength—cost efficiency and balance sheet quality—that I believe SURUGA is able to choose a distinctive management model of its own.

Launch of the New Mid-Term Business Plan
— Long-Term Vision “Waku Waku Only One”

Building on this understanding of the business environment and the solid management foundation built over the past three years, we announced our New Mid-Term Business Plan in April 2026. In formulating this new plan, the Bank clarified, for the first time, its “Long-Term Vision.” This “Long-Term Vision” gives form to our aspirations for the future, shaped through extensive and spirited debate with many of our younger and mid-career employees. We held repeated discussions across various departments regarding what drives employee engagement and fulfillment, specifically, when our team experiences “Waku Waku” in their roles, and how both the company and individuals can further cultivate this energy and excitement. As a result, the following three points crystallized as the core convictions that define who we are.
Our first conviction is “Creating a Difference.” SURUGA’s unique business model sets us apart from other regional banks, allowing us to achieve an industry-leading ROA (Return on Assets). Competitors soon catch up, however, so we cannot grow complacent. This conviction drives our commitment to relentlessly pursue new forms of “Creating a Difference” through “Pivot,” stepping into new territory with a shifted perspective while keeping our footing firm.
Our second conviction is that “employees are the protagonists.” Because people are what move a company forward, a unique competitive advantage can never emerge from a workplace that treats employees as mere cogs in a machine. Instead, we must nurture a corporate culture where every employee thinks and acts autonomously, aspiring to be a “first penguin” who is unafraid to take on new challenges without fear of risk. To that end, we have established a clear policy positioning investment in our people as our most critical growth investment, pursuing it proactively.
Our third conviction is the pursuit of “Waku Waku over scale.” After thorough discussions on the future of SURUGA’s sustainable growth model, a powerful consensus emerged from many employees. Rather than prioritizing scale, our employees want to build a bank that generates “Waku Waku” for both our customers and themselves alike.
Bringing these three convictions together, we have formulated a Long-Term Vision we should aim for: Every employee committed to embracing the challenge of “Creating a Difference,” we transform that effort into excitement (Waku Waku) for our customers and proudly discuss it together. That is the bank we are striving to become—the most exciting bank there is.
The key phrase symbolizing this vision is “Waku Waku Only One.” I am fully convinced that SURUGA will achieve this distinction, and I intend to make this vision an unwavering compass for our daily management decisions.

New Mid-Term Business Plan KPIs
— ROE of 11.0% or Higher

Collaboration with Credit Saison
— Sustainable Growth through an Alliance Strategy

For the Bank to grow sustainably and maximize its corporate value, partnerships with external partners are essential. Under the New Mid-Term Business Plan, in addition to our existing four autonomous profit centers, we have positioned our “Alliance Business” as a fifth profit center and a new area of revenue growth. The capital and business alliance with Credit Saison that began in 2023 is progressing smoothly, fusing the strengths of both companies and generating positive chemistry between them. Our collaboration to date has centered mainly on loan-related business for new customers, such as housing loans and real estate finance, but going forward we will move this alliance into Stage 2. Specifically, we will broaden the scope of our collaboration from loan-related business to procurement-related business. In the second half of FY2026, we plan to open a Saison Branch that will provide banking services to Saison Card members. By seamlessly linking credit cards with bank accounts, we aim to deliver a distinctive financial solution that dramatically enhances customer convenience, expanding a highly sticky deposit base. Looking ahead, we also plan to consider expanding into a third development stage, with an eye to business for small and mid-sized corporations.

This Fiscal Year’s (FY2026) Business Results Outlook
— Four Key Points Driving Growth

Under the business results outlook for this fiscal year that we announced in May 2026, we expect strong growth, with nonconsolidated Ordinary Profit rising 36.1% year on year to ¥47.0 billion. This revenue growth is driven mainly by four factors.
The first is new loan disbursements. Given the current uncertain financial and economic environment, we plan to steadily build up our loan book while remaining disciplined about the quality of risk and return. In particular, at Community Bank, we will actively pursue business loans for local corporate and sole proprietor customers.
The second is the expansion of net interest income in a “world with interest rates.” As of the end of FY2025, 83% of our loan book consisted of floating-rate loans—among the highest such ratios in the industry—meaning that rising interest rates work as a tailwind for our business results.
The third is the planned, systematic reduction of crossshareholdings. We will continue to reduce cross-shareholdings other than those in Credit Saison, our capital and business alliance partner, aiming to bring them down to around 2.5% of consolidated net assets by the end of FY2028.
And the fourth is proactive investment in “people, AX (AI Transformation), and our local communities.” While this investment will increase the absolute amount of our expenses, growth in the top line means we plan to maintain a high level of efficiency, with our core expense ratio (OHR) remaining at around 50%.

The Key to Sustainable Growth
— Proactive Investment in “People, AX, and Local Communities” to Open the Future

Growth Investment Area I
— Developing Professional Talent

Our investment in people centers on the active contribution of veteran employees, the advancement of women and diverse talent, and the creation of an organization that leverages individual expertise. Within the banking business in particular, the contribution of highly specialized talent is becoming increasingly vital. Our business model has evolved into the “Yatsugatake Model,” made up of multiple business areas linked together, and the expertise required in each business area differs. To evolve into an organization that leverages individual expertise, we are strongly promoting the linkage of business strategy with human capital investment. To drive this evolution, the New Mid-Term Business Plan has set a human capital target of “500 or more certified professionals on a cumulative threeyear basis.” Alongside professional talent development, we are actively fostering an open corporate culture. For example, last year we held Open Office events at our head office in Numazu, Suruga-daira, and Tokyo, inviting employees’ families and children into the workplace. Families toured the workplace and children interacted with our team, highlighting the warm, welcoming environment we are building. These homegrown events gave us a real sense our cultural transformation— creating a workplace where employees are engaged, smiling, and proud to share their company with loved ones.

Growth Investment Area II
— AI as a “Partner in Co-creating a Difference”

We are also advancing SURUGA’s own distinctive initiatives for AX (AI Transformation), which we regard as one of the pillars of our management strategy. When financial institutions adopt AI, it tends to be discussed mainly in the context of improving call center efficiency or productivity. We too are advancing AX company-wide, taking on the challenge of a “30% improvement in operational efficiency” target. However, the essence of the AX we are pursuing is not limited to efficiency. What matters is using AI as a “partner in Co-Creation” to sharpen our DNA of “Creating a Difference.” For example, we bring AI into brainstorming sessions where employees exchange ideas, asking “what does AI think?” as a sparring partner. We welcome AI as a genuine Co-Creation partner, positioning it not as a mere tool but as a “partner in co-creating a difference.” Just recently, we held an AI study session for our executives. Across the company, including management, a culture of actively engaging with AI and excitedly exploring new possibilities is steadily spreading. The pace of AI’s evolution is so rapid that it is difficult to foresee what things will look like in ten years, but one thing is certain: it is essential for people to coexist with AI and make active use of it.

Growth Investment Area III
— Coexistence with Local Communities

Thorough governance and compliance

We will also remain steadfast in our efforts to ensure rigorous governance and compliance. Reflecting on the Apaman Issue and other past misconduct, we are thoroughly maintaining a solid governance and compliance framework so that we never repeat the same mistakes. When people talk about rigorous compliance, the conversation tends to stop at “creating strict rules and embedding them.” What we have learned from our past, however, is that building a workplace environment where employees can “speak up” is equally important. A symbolic initiative in fostering this kind of speak-up workplace culture is the “Like! Post,” led by our Compliance Department. Ordinarily, internal reporting tends to center on negative content, but relying on that alone has its limits in building an environment where employees can speak up freely. Therefore, we broadened the framework for internal reporting to include voices of praise as well, launching “Like! Post” as a mechanism for employees to compliment one another’s good points. The initiative’s mascot character, “Homepiyo,” was also created through an employee submission contest. The idea of expanding the internal reporting mechanism beyond a channel for reporting problems into a place for sharing positive things as well came from the Compliance Department, which took the lead in designing it as an initiative that gets employees excited. In this way, I feel every day that SURUGA’s own brand of “Creating a Difference” and “Waku Waku” is spreading throughout the entire organization.

In Closing
— Continuing to “Create a Difference,” with “Wasabi” as Our Model

To close this message, I would like to return once more to our corporate philosophy, which we hold dearer than anything else: “‘I’m glad you’re here... I’m glad we met...’ This perception is our goal.” This philosophy does not stop at being a pleasantsounding statement of “customer first.” Providing merely ordinary service may lead customers to think “I’m glad you’re here,” but it will not reach the emotional experience of “I’m glad we met.” To deliver value that exceeds our customers’ expectations, we must commit in earnest to “Creating a Difference” found nowhere else. And it is each employee, acting as an autonomous protagonist, who creates that difference.
The wasabi I mentioned at the outset is a symbol of this. Authentic wasabi stands out for its “difference,” yet it is inherently not suited to mass production. Had the market settled for exclusively using it in high-end sushi restaurants, wasabi could never have achieved global popularity. Instead, wasabi consistently drove the creation of differences by shifting perspectives and generating unique pairings across all kinds of dishes.
In this way, the spirit of Pivot—planting our own “difference” firmly as our pivot foot while boldly exploring new territory— is the core of SURUGA’s DNA. Taking wasabi as our model, I believe that continuing to “Create a Difference” through our Pivot strategy is the course we must follow. Over the coming three years, under the banner of “Waku Waku Only One,” we will invest proactively in people, AX, and local communities. By continuously taking on the challenge of “Creating a Difference,” we will achieve sustainable growth and deliver strong returns to our shareholders.
To our stakeholders, we sincerely ask for your continued warm support and guidance as SURUGA Bank moves toward this new stage.

* The figures stated in this message are, in principle, those of SURUGA Bank (nonconsolidated). However, for some indicators—such as ROE, a KPI of the New Mid- Term Business Plan—consolidated figures are used.

* Core Expense Ratio (OHR) = Expenses ÷ Core gross operating profit (excluding gains on cancellation of investment trusts) × 100

July 2026