2. Shinkin International July 2012 Introduction and Analysis

3. Contents Shinkin International2 Shinkin Banks3 Japan’s Private Financial Institutions 4 Size and Performance of the Shinkin Banks 5 Shinkin Central Bank7 Shinkin International Ltd.12 MTN Arranging Record13 Analysis of Deal History 14 Analysis of Deals Executed in 201118 Issuers Placed19 Current Investment Trends 23 Milestones for Shinkin International 24 Summary25 Contacts26

4. Shinkin Banks Shinkin International3 Shinkin banks (“credit banks”) are cooperative financial institutions whose members are individuals and small/medium sized companies. Shinkin banks (governed by Shinkin Bank Law) operate in a similar way to commercial banks but in principle restrict lending to members. As at March 2011 there were 271 shinkin banks with a total of 7,584 branches throughout Japan. Membership stands at around 9.31 million and deposits total ¥129 trillion (approx. USD 1,549 billion) as at March 2011 - about 15% of the total deposit market in Japan. The great earthquake and tsunami of March 2011 caused damage to some of the branches belonging to just 7 of the 271 shinkin banks: the vast majority of the shinkin network was unaffected by the tragedy.

5. Shinkin International4 Japan’s Private Financial Institutions Private Financial Institutions Shinkin Central Bank City, Regional and Foreign Banks Trust Banks Shinkin Banks Labour Credit Associations Credit Co- operatives Insurance Companies etc. The Rokinren Bank The Shinkumi Federation Bank Commercial Banks Specialized Financial Institutions Other Financial Institutions Other Co-operative Institutions Shinkin International Ltd.

6. Size of the Shinkin Banks Shinkin International5 (US$ bln equivalent as at March 31, 2011) Deposit Balances by Sector Sources: Japanese Bankers Association, Norinchukin Bank, National Central Society of Credit Cooperatives, National Association of Labour Banks and SCB Sources: Bank of Japan, Japanese Bankers Association Deposit Growth by Bank Sector （ From March 31,1955 to March 31, 2007 ） Number of Domestic Branches （ as of March 31, 2011) Note: For Shinkin Banks as of March 31, 2010 Sources: Japanese Bankers Association, National Central Society of Credit Cooperatives, National Association of Labour Banks and SCB 7,584 7,500 3,134 2,364 1,761 658

7. Shinkin International6 Non - Consolidated Capital Adequacy Ratio by Bank Sector （ As of March 31, 2011 ） Growth in Number of Shareholders （ Millions, as of March 31, 2011 ） Performance of the Shinkin Banks Source: SCB Notes: Capital adequacy requirements with flexibility measures not applied before 2008. 2010 are preliminary figures. Source: SCB * Preliminary Figure Note: City Banks: BIS standard Others: Domestic standard Sources: Bank disclosure document/ Regional Banks Association of Japan/ The Second Association of Regional Banks Capital Adequacy Ratio （ As of March 31, 2011 ） Non-performing Loan Ratio （ As of March 31, 2011 ） 20072008200920102011 2007 2008200920102011

8. Shinkin Central Bank Shinkin International7 Shinkin Central Bank (“SCB”) was established in 1950 to act as a central bank for all the shinkin banks in Japan but also acts as a financial institution in its own right. The bank balances funding supply and demand among the shinkin banks and provide settlement and operational support. SCB is one of Japan’s largest institutional investors. As at March 2011, the bank had assets of ¥31 tln (USD 372 bln.) SCB’s consolidated BIS Capital Adequacy Ratio stands at 31.76% and the non-performing loans ratio is 0.36% (as at March 2011.) SCB is the 79th largest bank in the world in terms of Tier 1 Capital strength (The Banker July 2011).

9. Shinkin – Group Structure Shinkin International 8 Shinkin Bank A Shinkin Bank A Shinkin Bank B Shinkin Bank B Shinkin Bank C Shinkin Bank C Shinkin Bank D Shinkin Bank D Shinkin Bank (..) Shinkin Bank (..) Total Assets: ¥31tln (US$372 bln) Offices: Domestic 14, Overseas 4 Employees: 1,125 Members: 271 Shinkin Banks Listed on: Tokyo Stock Exchange Shinkin Banks’ Customers Deposits in ¥ Shinkin International Shinkin International Shinkin Securities Shinkin Securities Deposits in ¥ Investments in ¥ / € / $ Assets in ¥ / € / $ Individual Shinkin Banks ----------------------------------- Number: 271 Assets: ¥129ln Branches: 7,584 Members: 9,318,366 Individual Shinkin Banks ----------------------------------- Number: 271 Assets: ¥129ln Branches: 7,584 Members: 9,318,366 SHINKIN CENTRAL BANK Lending to SME Sector & individuals Assets in ¥ Investments in ¥ Primary Issuers Secondary Market Funding Assets Lending to SME Sector & individuals

10. Shinkin International9 Shinkin Central Bank – Ratings SCB has maintained strong and stable long-term ratings during the last decade and avoided the Japanese financial crisis of the late 90s/ early 00s: Source: Bloomberg AgencyShort-Term RatingLong-Term RatingFinancial Strength Rating JCR-AA- R&I-A+- S&PA-1A+- Moody’sP-1A1C- Moody’s Rating Comparison A1 A2 A3 Baa1 Aa3 Baa2 Aa2

11. Shinkin Central Bank – Business Overview Shinkin International10 Breakdown of Asset Management and Securities Held （ As of March 31, 2011 ） Fund Raising¥ (Billions)100% Deposits21,58072.6% Debentures4,34014.6% Borrowed Money3,82212.8% Breakdown of Funding （ As of March 31, 2011 ）

12. Shinkin Central Bank – Financial Soundness Shinkin International 11 Note: Ratio of expenses = Total Expenses / Average Balance of Deposits + CDs + Debentures. Source: Japanese Bankers Association Funds per Employee （ As of September 30, 2010 ） (USD Millions) Capital Adequacy Ratio （ As of September 30, 2010 ） Non-performing Loans Ratio （ As of September 30, 2010 ） Expenses Ratio （ As of September 30, 2010 ） Note: Total Funds = Deposits + CDs + Debentures Source: Japanese Bankers Association Note: SCB: BIS Standard City Banks: Average of 6 Banks Source: Bank Disclosure Documents Note: NPL ratio = Total risk-monitoring loans/ Total loans Source: Financial Services Agency

13. Shinkin International Ltd. Shinkin International12 Shinkin International Ltd. (a wholly owned subsidiary of Shinkin Central Bank) was established in London in 1990 as an overseas base for securities business. The main goals of the company are to arrange and place private EMTN draw-downs, to trade secondary eurobonds and to provide broad investment opportunities. These activities are driven by the combined requirements of  Shinkin Central Bank  individual banks among the extensive shinkin network (approximately 80% of shinkin banks have bought EMTNs)  other investors in Japan and elsewhere (sourced both through direct marketing and in co-operation with other arrangers) We are regulated in the UK by the Financial Services Authority.

14. Shinkin International13 Transaction Execution Record ^ Before 2010 excludes secondary *As at 17 July 2012 20082009201020112012* Number of Transactions206164137140116 Vanilla New Issues103 593841 Structured New Issues692729207 Increases2418677 Secondary1016437561 Volume (¥ bln)^333325229145329 Vanilla28731016959275 Structured46151793 SecondaryN/A 437751 Number of Primary Issuers5542383320 Average Primary Issue Size (¥ bln)1.92.52.11.25.8

15. Analysis of Deal History Shinkin International14 Shinkin International Ltd. has been successfully arranging MTNs for Japanese wholesale investors since 1996. Until 2006 our business was dominated by structured trades - often bermudan callable - but in recent years higher spreads on vanilla credit has resulted in a fundamental shift in investor preferences. In 2010 and 2011 we expanded our secondary bond business significantly to satisfy greater investor appetite for EUR and USD bonds and deliver the substantially higher yields achievable on most public bonds relative to private placements. Total Issuance (number of deals) （ As of December 31, 2011 ） Total Issuance (JPY bln equiv) （ As of December 31, 2011 ）

16. Analysis of Deal History Shinkin International15 Deal History by Currency (volume) （ As of December 31, 2011 ） Deal History by Termination Type (volume) （ As of December 31, 2011) JPY should theoretically be our most important issuance currency since many of our investors only have domestic operations in Japan. However since 2009 the adverse cross currency basis swap and competition from the Samurai market have restricted JPY vanilla private placement investments. The proportion of callable business has declined substantially in recent years and in 2011 accounted for just 11% of the total amount issued (but still 29% in terms of the number of private placement transactions executed).

17. Analysis of Deal History – Risk Weight Shinkin International16 Total Deals by Basel II Risk Weight* (number) （ As of December 31, 2011 ） Total Deals by Basel II Risk Weight* (JPY bln equiv.) （ As of December 31, 2011 ） Deals History by Risk Weight *(number of trades) （ As of December 31, 2011 ） Total Deals by Basel II Risk Weight* (JPY bln equiv) （ As of December 31, 2011 ） Historically a majority of issues have been for 20% risk-weighted entities, but since 2006 we have executed a significantly higher proportion of trades with 50% and 100% risk- weighted credits, often Japanese. Note 2011 data uses end of year ratings, meaning some downgraded 50% risk-weighted issues were 20% risk-weighted at the time of issue. Note: *Basel II risk weight categorization is determined using Shinkin International’s internal assessment

18. Since the credit crunch higher medium term funding spreads have enabled us to arrange some larger private placement tickets and the majority of our revenue is now obtained from the arrangement of vanilla bonds (callable Step-up Reverse Floaters remain an important contributor though). Analysis of Deal History – Products Shinkin International17 Deal History by Structure (volume) （ As of December 31, 2011 ） Deal History by Structure (fees) （ As of December 31, 2011 ） In the early 2000s the majority of trades were callable Step-up Reverse Floaters and Power Reverse Dual Currency bonds but in 2004-06 structures became notably more diverse. In the past five years the volume of structured issuance has declined substantially.

19. Analysis of Deals Executed in 2011 Shinkin International18 2011 Issues by Structure (# of deals) （ As of December 31, 2011 ） 2011 Issues （ As of December 31, 2011 ） (JPY bln Equiv. Volume) Issues by CurrencyIssues by Call Type JPY issues regained top spot for private placement issuance (not the case in 2010) but due to strong secondary market flows in EUR (up until August) and USD (thereafter) overall business in JPY again accounted for less than 50% of total volumes. New issue volumes were relatively poor, reflecting both the unavailability of preferred Japanese issuers and a negative attitude towards European credit that escalated towards year-end. Despite concerns about future accounting rule changes some investors still bought JPY Bermudan callable structured trades issued by quality credits, particularly Step-up Reverse Floaters.

20. Issuers Placed Shinkin International19 In total Shinkin International Ltd. has arranged MTNs for about 220 different issuers since 1996. For the majority of these issuers we provide regular financing - in 56% of cases three or more transactions have been executed and there are nine issuers benefitting from over 40 completed trades. Although we are still adding new issuers each year, since the credit crunch investors have become more conservative about establishing limits for unfamiliar names. Issuers Placed (number) （ As of December 31, 2011 ）

21. Issuers Placed – Geographical Distribution Shinkin International20 *Location of parent if subsidiary Vanilla EMTN issuance for Japanese entities (generally overseas subsidiaries) accounts for the highest proportion of our executed business but overall we have arranged 2035 issues for 219 issuers located in 22 different OECD countries. Approximately 39% of all our issues have been arranged for the core European countries of Germany, France and the Netherlands, plus the UK. A total of 300 trades into Canada and Luxembourg executed with just 12 entities. Total Deals by Issuer Domicile* (number) （ 1996-2011 ） Total Volume by Issuer Domicile* (JPY bln. Equiv.) （ 1996-2011 ）

22. Issuers Placed – Vanilla funding Shinkin International 21 * Year of first transaction. NON-JAPANESE ISSUERSJAPANESE ISSUERS ALLIED IRISH BANKS 2007*INTESA SANPAOLO 2007BANK OF TOKYO-MITSUBISHI UFJ 2012MARUBENI INTL FINANCE 1999SUMITOMO REALTY 2003 AMERICAN HONDA 2002KBC IFIMA 2008BOT LEASE CO LTD 2004MITSUBISHI ELECTRIC 2002SUNTORY EUROPE 2007 BANK AUSTRIA CREDITANSTALT 2007KOREA DEVELOPMENT BANK2011CHUBU ELECTRIC 2003MITSUBISHI UFJ LEASE 2006TEIJIN HOLDINGS NETH 2005 BANK OF IRELAND 2008LBANK RHEINLAND PFALZ 2005CENTURY LEASING SYSTEMS 2005MITSUI & CO (UK) 2001TOKYU CORPORATION 1999 BANK OF NOVA SCOTIA 2008LVMH JAPAN KK 2006CENTURY TOKYO LEASING CORP 2011MITSUI &CO (USA) 2003TOSHIBA INT FIN (NETH) 2000 BANQUE PSA FINANCE 2003MERCEDES-BENZ JAPAN CO. 2011DAINIPPON INK AND CHEMICAL 2002MITSUI FUDOSAN 1997TOSHIBA CAP CORP (ASIA) 2002 BBVA 2009NATIONAL AUSTRALIA BANK 2007DEVELOPMENT BANK OF JAPAN 2009MITSUI OSK FINANCE 2002TOKYO LEASING 2007 BBVA SENIOR FINANCE 2006NORDDEUTSCHE LBANK 2005EUROMOL BV 1999MITSUI OSK LINES 2008 BMW AUSTRALIA FINANCE 2010NORDEA BANK 2007FUJI PHOTO 2000MMC INTERNATIONAL 1999 BMW JAPAN FINANCE CORP 2007OERESUNDSFORBINDELSEN 2005FUJITSU EMEA 2005MONEX BEANS HOLDINGS 2007 BMW (UK) CAPITAL 2007RCI BANQUE 2007HITACHI CAP AMERICA CORP 2004NIPPON YUSEN KABUSHIKI 2002 BMW US CAPITAL 2009REICHHOLD 1998HITACHI CAPITAL (UK) 2007NISSAN 1998 BNZ INTERNATIONAL FUNDING 2012RENAULT CREDIT 2001HITACHI FINANCE 2001NISSHO IWAI 1997 BPCE 2010SANTANDER INTL DEBT 2006HITACHI INTERNATIONAL 2003NKK CAPITAL 2000 CIBC 2007SCOTTISH & NEWCASTLE 2001INDUSTRIAL BANK OF KOREA 2002NKK CORPORATION 2000 COCA COLA AMATIL 2001SEVERN TRENT PLC 2001ITOCHU FINANCE (EUROPE) 2006NOMURA BANK INTERNATIONAL 2010 DAIMLER CHRYSLER AG 2002SOCIETE GENERALE 2009KAJIMA CAPITAL OF AMERICA 2003ORIX AUSTRALIA 2006 EDF ENERGY PLC 2004STANDARD CHARTERED BANK 2010KOBE STEEL (AMERICA) 1999ORIX USA CORP 2002 EFG HELLAS PLC 2004SKANDINAVISKA ENSKILDA BANKEN 2011KOBE STEEL (NETHERLANDS) 2003PLASMA LIMITED 2009 FINANCE FOR DANISH INDUSTRY 2007SWEDBANK 2007KOMATSU EUROPEAN CC 2006SHIMUZU INTERNATIONAL 2000 FORTIS BANK 2007TORONTO DOMINION 2000KOMATSU FINANCE AMERICA 2002SUMI MITSUI FIN & LEASING 1999 GMAC AUSTRALIA 2003UNICREDITO ITALIANO 2008KOMATSU (NETHERLANDS) 2002SUMISHO LEASE 2002 GMAC INTERNATIONAL FINANCE 2003VATTENFALL 2000KONICA CORP 1999SUMITOMO CHEMICAL (UK) 2007 HSBC BANK 2010VIVENDI ENVIRONMENT SA 2001KONICA MINOLTA FIN USA 2004SUMITOMO CORP AMERICA 2005 HSH NORDBANK 2005VOLVO TREASURY 2005MARUBENI EUROPE 2006SUMITOMO CORP CAP ASIA 2006 BERDROLA FINANZAS 2005VW FINANCIAL SERVICES 2004MARUBENI FINANCE HOLLAND 2007SUMITOMO MITSUI BANKING 2012

23. Issuers Placed – Structured funding Shinkin International 22 * Year of first transaction. ABBEY NATIONAL PLC 1998*CDC IXIS CAPITAL MARKETS 1999FARM CREDIT CANADA 2002NEDERLANDSE WATERSCHAPSBANK 2002 ABN AMRO N.V. 1999CHRISTIANIA 1997FIRST CHICAGO TOKIO MDP 1999NEW SOUTH WALES TREASURY CORP 2002 AFRICAN DEVELOPMENT BANK 2002CNCEP 2001FMO 2000NIBC BANK 1999 ANZ BANKING GROUP LIMITED 2003COMMONWEALTH BANK OF AUSTRALIA 2005FORTIS BANQUE LUXEMBOURG 1999NORTH RHINE – WESTPHALIA 2003 ARGENTARIA 1997COMMERZBANK 1999HAMBURGISCHE LANDESBANK 2001NORDIC INVESTMENT BANK 2005 ARTESIA 2001COMP DE FINANCEMENT FONCIER 2002HYPO ALPE-ADRIA BANK 2001OBEROESTERREICHISCHE LB 2002 ASIAN DEVELOPMENT BANK 2005CREDIOP 2001HYPO TIROL 2003OESTERREICHISCHE KONTROLLBANK 2005 AUSTRIA (REPUBLIC OF) 2002CREDIT AGRICOLE INDOSUEZ 2004ING BANK NV 2004PFANDBRIEFSTELLE 2004 BACOB 1997CREDIT AGRICOLE SA 2006INTER-AMERICAN DEVELOPMENT BANK 2008RABOBANK 1999 BANK FUER ARBEIT UND WIRTSCHAFT 2001CREDIT SUISSE INTERNATIONAL 2007INTL BK FOR RECONSTRUCTION AND DEV 2010RENTENBANK 2001 BANK NEDERLANDSE GEMENTEN 2002DANSKE BANK 2005INTL FINANCE CORPORATION 2001ROYAL BANK OF CANADA 2005 BANK OF SCOTLAND 2004DNB NOR BANK 1997INSTITUTO CREDITO OFICIAL 2002ROYAL BANK OF SCOTLAND 2000 BANK OF YOKOHAMA 2000DEPFA BANK PLC 2005KFW 2000SE BANKEN 1997 BARCLAYS BANK PLC 2004DEPFA DEUTSCHE PFANDBRIEF 2003KOMMUNALBANKEN 2001SGA SOCIETE GENERALE 2004 BAYERISCHE LANDESBANK 1998DEPFA ACS BANK 2004KOMMUNALKREDIT 2002SUMITOMO CORP CAPITAL EUROPE 2004 BAYERISCHE VEREINSBANK 1997DEXIA BIL 2001KOMMUNEKREDIT 2001SUMITOMO CORP CAPITAL NETHERLANDS 2000 BCEE 1998DEXIA CREDIT LOCALE 2001KOMMUNINVEST 2000SWEDBANK MORTGAGE 2004 BCL INTERNATIONAL 2001DEXIA FUNDING NETHERLANDS 2002LANDESBANK BADEN-WURTTEMBERG 1999SVENSKA HANDELSBANKEN 1999 BGB FINANCE (IRELAND) PLC 1998DEXIA MUNICIPAL AGENCY 2005L-BANK 2004SWEDISH EXPORT CREDIT 2000 BNP PARIBAS 2004DEUTSCHE BANK 2004LLOYDS TSB BANK PLC 2001TOYOTA MOTOR CREDIT CORPORATION 2008 BUSINESS DEVELOPMENT BK OF CANADA 2001DRESDNER BANK 1998MERRILL LYNCH & CO 2006VENANTIUS 2000 DEVELOPMENT BANK OF JAPAN 2009DZ BANK 2006MITSUBISHI CORP FINANCE 2004VORALBERGER LANDES-HYPO 2001 CAISSE CENTRALE DESJARDINS 1999EKSPORTFINANS 1999MITSUI & CO FIN SERVICES (EUROPE) 2005WESTLAND UTRECHT HYPO 1999 CALYON 2004EUROHYPO 2005MUNICIPALITY FINANCE 2002WESTPAC BANKING CORP 2004 CALYON FINANCE (GUERNSEY) LIMITED 2005EXPORT DEV BANK OF CANADA 1999NATIONWIDE 1996 WILLOW CAYMAN I LTD 2011 CANADIAN WHEAT BOARD 2001EXPORT FIN & INSURANCE CORP 1999NATIXIS 2007

24. Current Investment Trends Shinkin International23 Call history per 6M period (number of structured note calls) Our wholesale investors continue to generate good JPY liquidity from domestic savings accounts, with plenty of surplus funds available for investment; most of this remains with Japanese credit. Since late 2008 the attitude of our investors towards non-Japanese credit has ebbed and flowed like a tide, driven on the one hand by negative news stories and on the other by the historically high credit spreads achievable on investments; since the beginning of 2012 we have seen renewed appetite but investors have been slow to react as spreads decline and shorter-dated maturities remain strongly preferred. Consequently there is a build up of delayed investment with an increasing urgency to yield enhance portfolios dominated by JGB and UST government securities. Larger investors are able to buy EUR and USD denominated debt (in addition to JPY), managing cross currency risk on either an individual trade or portfolio basis depending on market circumstances; in 2012 EUR investments have become acceptable again driven by the relatively favourable basis swap to JPY. There have been a couple of spikes in the frequency of old callable structured notes early redemptions in 2012 and some limited demand to replace these investments exists, although achieving Y1 coupon targets on acceptable credits remains challenging.

25. Milestones for Shinkin International Shinkin International24 1999: 1st appointment to a Dealer Group - Mitsubishi Motors 2001: 1st issue for a Supranational - International Finance Corporation 2002: 1st issue for a Sovereign - Republic of Austria 2003: 1st Nikkei-linked issue 2004: Total of arranged transactions passes JPY 1 trillion (USD 9.7 bln) 2005: 1000th EMTN transaction executed 2005: A record 301 deals completed with total volume of JPY 535 bln 2007: 1st Uridashi issue – Eksportfinans 2007: Total of arranged transactions passes JPY 2 trillion (USD 17.9 bln) 2009: Largest issue to date - Lloyds TSB Bank JPY 29.3 bln 2009: 1st repackaged issue using Shinkin International’s SPV - Plasma Ltd. 2010: 1st GBP-denominated Issue - Lloyds TSB Bank 2010: Total of arranged transactions passes JPY 3 trillion (USD 36.7 bln) 2011: 2000th EMTN transaction executed 2011: 1st hybrid currency and credit-linked issue

26. Summary Shinkin International25 Shinkin is a co-operative financial network of local banks located throughout Japan servicing individuals and small/ medium sized businesses. Shinkin Central Bank acts as a central bank for all the shinkin banks and is one of Japan’s strongest banks, reflected by its A1/A+ rating. With deposits totaling USD 1,549 billion equivalent, shinkin banks are active investors and, with assets of USD 372 billion, SCB is also one of Japan’s largest institutional investors. Shinkin International’s relationships with SCB and the extensive shinkin bank network provides natural distribution for EMTN product. Shinkin International ranked fourth as a 3rd-party provider of JPY vanilla EMTNs in 2010 (MTNi – syndicated and self-issued excluded).

27. Shinkin International26 Contacts Shinkin International Ltd. 4th Floor, River Plate House, 7-11 Finsbury Circus, London EC2M 7YA Managing Director Kengo Kaji +44 (0)20 7562 0501 Head of Capital Markets Satoshi Igarashi +44 (0)20 7374 4633 Head of Origination David Scott +44 (0)20 7374 4633