SBI : Notice of SBI Savings Bank’s Capital Increase

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responsibility for the contents of this announcement, make no representation

as to its accuracy or

completeness and expressly discl

im any liability whatsoever for any loss howsoe ver arising from or in

reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Japan with limited liability)

This announcement is made pursuant to Rule 13.10B of the Rules Governing the List ing of Securities on The
Stock Exchange of Hong Kong Limited.

Please refer to the attached copy of the Announcement.

On behalff of the Board SBI Ho ldings, Inc. Yoshit aka Kitao

Represent ative Director,

President & Chi ef Executive

Officer

Japan, 9 June 2014

As of the date of this announcement, the executive Directors are Mr. Yoshitaka Kitao, Mr. Takashi Nakagawa,

Mr. Tomoya Asakura, Mr. Shumpei Morita and Mr. Peilung Li, the non-executive Di rectors are Mr. Masato

Takamura, Mr. Hiroshi Tasaka an

Mr. Teruhide Sato and the independent non-exec utive Directors are Mr.

Masaki

Yoshida, Mr.

Kiyoshi Nagano, Mr.

Keiji Watanabe, Mr. Akihiro Tam aki and Mr.

Masanao

Marumono.

9 June 2014
SBI Holdings, Inc. (TOKYO: 8473 / Hong Kong: 6488)

SBI Holdings, Inc. (hereinafter "SBIH") hereby announces that SBI Savings Bank (hereinafter "SBI 1 Savings Bank") and SBI 2 Savings Bank, both of which are South Korean subsidiaries of SBIH, will conduct a capital increase amounting to KRW 180.0 billion (equivalent to approximately JPY 18.0 billion, converted at KRW 1
= JPY 0.100). The funds for the capital increase subscription are planned to be raised by SBIH's subsidiary from South Korean financial institutions.

With regard to a capital increase carried out by SBI 1 Savings Bank and its affiliated banks (hereinafter "SBI Savings Bank Group" collectively with SBI 1 Savings Bank), the SBI Group has been considering the possibility of receiving funding contributions from financial institutions and investors outside of the SBI Group. As it became possible to receive funding from several financial institutions in South Korea, the SBI Group decided upon the said capital increase.
Of the total amount of the capital increase subscription, the said subsidiary of SBIH has raised KRW 130.0 billion (equivalent to approximately JPY 13.0 billion) through a syndicated loan from local institutional investors, including a major life insurance company. SBIH is also considering raising the remaining KRW
50.0 billion (equivalent to approximately JPY 5.0 billion) from South Korean financial institutions.
Through the capital increase, the capital adequacy ratios of SBI 1 Savings Bank and SBI 2 Savings Bank are each expected to exceed 8% (as of the end of June 2014).
The SBI Savings Bank Group has been focusing on debt collection by means including the sale of bad debt, and promoting business development to extend loans to individuals, and to small and medium-sized enterprises, in order to strengthen profitability. In SBIH' consolidated financial results based on the International Financial Reporting Standards (IFRS), the SBI Savings Bank Group posted profit before income tax expense of approximately JPY 4.0 billion for the fiscal year ended 31 March 2014.
Owing to the capital increase, the SBI Savings Bank Group will further strengthen its financial base on the basis of the South Korean Accounting Standards (K-GAAP), and more aggressively promote business development through the utilization of the raised funds. Additionally, SBI 1 Savings Bank is considering an organizational restructuring, including affiliated bank mergers, and will continue to strengthen its profitability toward a future IPO.
The impact of the said capital increase on the consolidated financial results of SBIH will be minimal.

* The figures include the shares held through SBI 1 Savings Bank.

**************************************************************************************** For further information, please contact:
SBI Holdings, Inc. Corporate Communications Dept., Tel: +81 3 6229-0126

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