(E11701) Stock Price

The Development Bank of Japan is a government-affiliated financial institution that supplies long-term business capital to companies and organizations through integrated lending and investment functions. In addition to standard loans, the bank provides equity investments and debt guarantees, addressing a wide range of financing needs from senior loans to mezzanine financing to equity. The bank also offers arrangement and advisory services, delivering comprehensive financial solutions.

The bank's primary customers are companies and regional businesses requiring long-term capital, with particular focus on projects aimed at strengthening competitiveness and revitalizing local economies. Revenue is primarily generated from interest income on loans and dividend income from equity investments, supported by stable long-term funding sources including corporate bonds and fiscal investment funds from the government. During crisis response operations, the bank provides emergency funding when designated by the government during large-scale disasters or economic crises.

The bank's operations are divided into three categories: regular operations, crisis response operations, and specified investment operations. Crisis response operations provide funding during financial crises and disasters, while specified investment operations conduct concentrated investments in growth capital using government funding through 2031. The government is required to maintain ownership of more than one-third of issued shares for crisis response operations and at least one-half of shares for specified investment operations. While maintaining a full privatization policy, the bank will remain under government involvement for the foreseeable future.

The Development Bank of Japan aims to achieve approximately 210 billion yen in gross operating profit and approximately 85 billion yen in net profit attributable to parent company shareholders in fiscal year 2025 under its Fifth Medium-Term Management Plan. The bank plans to expand total assets to approximately 21 trillion yen and has set profitability targets of approximately 1% return on assets and approximately 3% return on equity. By maintaining an expense ratio of approximately 34% and a capital adequacy ratio of approximately 14%, the bank seeks to balance profitability with financial soundness.

The bank's differentiation strategy centers on the "DBJ GRIT Strategy," focusing on four key areas: decarbonization support for achieving carbon neutrality, investment in disaster-resilient social infrastructure, innovation creation, and business transformation support for companies. In sustainable finance particularly, the bank leverages proprietary financial products such as DBJ Sustainability Evaluation Certification-Based Loans to support enhancement of corporate non-financial value, differentiating itself from other financial institutions.

Business expansion is pursued along three axes connecting industries, regions, and generations. On the industrial front, the bank strengthens responses to cross-sector themes beyond existing industries and focuses on startup support through collaboration with corporate venture capital. Regionally, the bank promotes decarbonization support tailored to local characteristics, local resource development, and business succession support, while planning to expand risk capital supply through cooperation with regional financial institutions.

Regarding technological innovation, the bank actively increases equity investments that strengthen corporate competitiveness and revitalize regions through designated investment operations implemented through 2031. The bank also advances work style reforms including enhanced human resource development and operational efficiency improvements, and supports social implementation of innovation through collaborative frameworks with financial institutions and others. Leveraging its integrated investment and financing business model, the bank aims to contribute to revitalizing Japan's financial market by creating new investment and financing opportunities from a customer-centric perspective.