Regarding Capital and Business Alliance Between JR West and Resona Group

Overview of the Capital and Business Alliance

West Japan Railway Company (JR West), Resona Holdings, Inc. (Resona HD), and Kansai Mirai Bank, Ltd. have entered into a capital and business alliance agreement aimed at revitalizing the regional economy. JR West plans to acquire 20,000,000 shares (20% of the total issued shares) of Kansai Mirai Bank from Resona HD for 90 billion yen, making Kansai Mirai Bank an equity-method affiliate of JR West. Through this alliance, a new banking service called 'WESTER Mirai Bank (tentative name)' will be launched during fiscal year 2027, aiming to evolve payment services and improve the quality of life along JR West’s railway lines.

Outlook and Impact

Resona HD plans to record approximately 40 billion yen as a special gain from the sale of equity investments in affiliates in its individual financials for the fiscal year ending March 2027; however, this will be eliminated in consolidated financial statements. The three companies expect this alliance to contribute to performance improvement over the medium to long term. The specific impact is currently under review and will be promptly disclosed as necessary. The establishment of a joint venture is planned during fiscal year 2028 to promote the development of a regional value circulation-type BaaS and payment model.