Decisive Action Today for Success Tomorrow

Decisive Action Today for Success Tomorrow 14th CLSA Investors' Forum 2007 Hong Kong September 17 18, 2007 Shinsei Bank, Limited 0 Rahul Gupta Senior Managing Executive Officer Chief Financial Officer

Agenda Page 2 3 4 6 9 16 20 21 Highlights Key Corporate Imperatives Three Pillar Business Strategy Institutional Banking Consumer Commercial Finance Retail Banking U.S. Residential Mortgage Exposure Capital Adequacy Risk Capital 22 Forecast Fiscal Year 2007 23 Key Takeaways 1

Highlights Committed to Sustainable Growth Shinsei Bank remains committed to delivering sustainable long-term pritable growth based on a three pillar business strategy Quick return to pritable growth following decisive actions taken during fiscal year 2006 First quarter net income JPY31.2 Billion; 62.6% increase over 1QFY2006 Operating performance on track but market uncertainty remains a challenge during fiscal year 2007 Despite pro-active provisioning, uncertainty relating to Grey Zone claim trends remains an issue On target to meet forecast for fiscal year 2007 Excluding one-f gains, first quarter net income represents 33.7% full fiscal year 2007 forecast (consolidated basis) 2

Key Corporate Imperatives Pursuing long-term sustainable growth Target Total Capital Ratio 12% Grow Revenue Faster than Expenses Achieve ROE 14% on Cash Basis 1 The Five Key Corporate Imperatives By Fiscal Year 2010 Reduce Expense/ Revenue Ratio < 50% Increase ROA to 1.5% on Cash Basis 1 1 Reflects pre-tax return over four years 3

Three Pillar Business Strategy The three strategic pillars are key to Shinsei s business model Institutional Banking 1,2 () 47% Customers Consumer Commercial Finance 1 () 41% High Market Attractiveness Medium : Enhance customer base pritability : Focus on pritable customers : Build next generation consumer commercial finance model Retail Banking 1 () 12% Low Risk Management Compliance Corporate Governance Technology Platform 1 Percentage total revenue contribution for the first quarter ended June 30, 2007, management accounting basis 2 Includes revenue ALM/Corporate/Other 4 Weak Average Strong Competitive Strength

Three Pillar Business Strategy: Challenges Opportunities Leveraging innovativeness synergies to turn challenges into opportunities Institutional Banking Consumer Commercial Finance Retail Banking Challenges Intense Intense competition competition Talent Talent war war Market Market turmoil turmoil Grey Grey Zone Zone claims claims Credit Credit cost cost control control APLUS APLUS business business transformation transformation Increasing Increasing competition competition Limited Limited physical physical presence presence Opportunities Leverage Leverage global/local global/local partnerships partnerships Leverage Leverage Shinsei Shinsei technology technology Market Market turmoil turmoil Establish Establish next next generation generation Shinpan Shinpan Leverage Leverage synergies synergies with with Retail Retail Banking Banking business business Non-organic Non-organic expansion expansion customer customer base base network network Leverage Leverage synergies synergies with with consumer consumer finance finance business business 5

Institutional Banking: Revenue Breakdown Diversified product revenue improves growth stability Revenue Revenue Breakdown Breakdown by by Products Products 1 1 12 months 120.0 100.0 80.0 97.0 16.7 18.9 116.7 31.4 20.2 117.3 12.8 17.8 20.1 Forex, Derivatives, Equity Related Non-recourse Loans Corporate Loans 2 Rising loan dem asset prices produced strong first quarter results 3 months 60.0 14.6 17.9 17.1 Credit Trading 60.0 40.0 20.0 0.0 11.2 15.8 14.9 10.7 12.6 12.9 6.3 7.8 5.8 5.0 7.7 2.6 8.3 20.8 FY2004 FY2005 FY2006 Securitization Principal Investments 3 Other Capital Markets Other 4 40.0 20.0 0.0 33.6 5.1 24.5 4.8 4.4 3.9 6.3 6.0 4.7 1.5 4.1 4.6 2.4 0.2 1.71.5 4.9 1.3 1QFY2006 1QFY2007 1 Management accounting basis 2 Includes balance sheet specialty finance lending activities 3 Includes revenue private equity, real estate principal investment corporate revitalization activities 4 Mainly includes revenue Shinsei Trust, corporate advisory asset management, including gain on BlueBay investment JPY 11.6Billion in fiscal year 2006 6

Institutional Banking: Products Mix Strategy Aim for sustainable performance through existing new franchise growth Products Products Mix Mix Growth Growth Potentials Potentials Growth Drivers: Growth Potential High Corporate Business Solutions (Credit Trading, Revitalization Business, Principal Investments, others) Capital Markets: Boosting resources to provide more solutions to customers Real Estate Financing: Provide full range services using our expertise Small Cash Flow Generation Large Asset Management: Leveraging our relationships with global fund providers local distribution networks Basic Banking Advisory Asset Management Wealth Management Shinsei Trust Real Estate Financing Capital Markets Wealth Management Unique company owner/founder model Low Advisory Leveraging our knowledge experience to provide additional value to existing customers 7

Institutional Banking: Key Actions in Fiscal Year 2007 Focus on building strong relationships with pritable customers Objectives Sharply increase number pritable customers Sharply increase number pritable customers Actively manage balance sheet Actively manage balance sheet Increase revenue with new franchise growth Increase revenue with new franchise growth Generate expense-to-revenue ratio less than 40% Generate expense-to-revenue ratio less than 40% Actions Emphasis Emphasis on on enhancing enhancing customer customer pritability pritability by by promoting promoting 3 3 products products per per customer customer compared compared to to the the current current 1.3 1.3 product product penetration penetration ratio ratio Discipline Discipline in in Customer Customer Relationships Relationships Target Target 1,000 1,000 pritable pritable relationships: relationships: Currently Currently over over 600 600 pritable pritable relationships relationships Partner Partner with with regional regional financial financial institutions institutions Acquire Acquire new new corporate corporate clients clients Become Become primary primary provider provider capital capital markets markets solutions solutions Seek Seek further further opportunities opportunities in in public public sector, sector, asset asset management, management, M&A M&A advisory advisory areas areas Implementation Implementation priority priority IT IT projects projects 8

Consumer Commercial Finance: Revenue Breakdown Gaining momentum following decisive actions to address industry changes Revenue Revenue Breakdown Breakdown by by Products Products 1 1 12 months 120.0 100.0 119.7 112.2 11.7 25.0 22.8 Showa Leasing APLUS remains the most significant component revenue 80.0 3 months 60.0 60.0 40.0 20.0 43.2 7.0 36.2 85.1 93.2 APLUS 40.0 20.0 31.8 31.3 2.4 1.5 5.7 7.2 23.6 22.5 0.0-20.0-6.0 FY2004 FY2005 FY2006 Other Subsidiaries (including Shinki, an affiliate) 0.0-20.0 1QFY2006 1QFY2007 1 Management accounting basis, each product sum does not add up to total due to rounding 9

Consumer Commercial Finance: Market Focus by Subsidiaries an Affiliate Broad coverage customers products Consumer Consumer Market Market Micro Business Micro Business Market Market SME Market SME Market Middle Market Middle Market Large Large Corporations Corporations Consumer Credit Consumer Credit Installment sales credit, loans credit cards to consumers via merchant partners Commercial Finance Commercial Finance Unsecured business finance General auto leasing/installment finance Property Finance Property Finance Home equity loans financing for small property developers Consumer Finance Consumer Finance Unsecured lending 10

Consumer Commercial Finance: APLUS - Strategic Direction Focused strategic direction to be the next generation Shinpan Vision: APLUS will become the next generation Shinpan, providing superior service for consumer credit collections operations to our merchant partners through best-in-class infrastructure IT capability Strategic Direction: Provide credit skills services to support our merchant partners Offer valued state--the art infrastructure, credit/collection skills, service to our merchant partners Develop a single view (product aggregation) each individual customer generated through our merchant partner channel Rational, measured approach to acquisitions or partnerships 11

Consumer Commercial Finance: APLUS - Products Mix Strategy Leveraging APLUS strengths to become a next generation Shinpan Products Products Mix Mix Growth Growth Potential Potential Growth Potential High Products Strategy: Rebuild back fice + technology platform using Shinsei capabilities Small Credit cards Settlement services Cash Flow Generation Large Target high level automation Differentiate APLUS from traditional Shinpan through products + process solutions for merchant partners Installments Consumer loans Low 12

Consumer Commercial Finance: APLUS - Grey Zone Claims Provisions Closely watching grey zone claim situation to apply appropriate level provisions APLUS APLUS Grey Grey Zone Zone Claims Claims Provisions Provisions 12.0 10.0 8.0 6.0 4.0 2.0 0.0 10.8 10.3 9.7 1.9 2.4 0.7 1.1 0.3 0.4 0.6 1QFY2006 2QFY2006 3QFY2006 4QFY2006 1QFY2007 Grey -Zone ref und claims (consolidated) Grey -Zone prov isions (consolidated) Developing Developing White White Zone Zone portfolio portfolio New customers New customers Strict observance December 2006 Strict observance December 2006 Credit Stard for careful selection Credit Stard for careful selection customers customers Introduction white zone interest Introduction white zone interest rates rates Existing customers Existing customers Discern credit status other Discern credit status other requirements requirements 13

Consumer Commercial Finance: Showa Leasing Enhancing customer base diversifying revenue sources Trend Trend Leasing Leasing Assets Assets Installment Installment Payments Payments Receivable Receivable 1 1 600 After Shinsei s Acquisition 449 464 464 464 435 428 400 140 139 137 160 161 174 200 309 296 291 303 302 290 0 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Leasing Assets Installment Payments Receivable Source: Showa Leasing 1 All figures presented above are Showa Leasing s disclosed non-consolidated financials (numbers rounded) 2 SARL: Showa Auto Rental & Leasing Co., Ltd. 14 Products Strategy: Japanese Lease & Installment Sales: core products industry stard; differentiation via riskbased pricing relationships Auto Leasing: core fering via SARL 2 subsidiary; typically includes bundled maintenance other services with lease contract Operating Leases: growing as JGAAP treatment Japanese leases changes; requires skill to manage equipment residual values; includes tax-oriented Japan Operating Lease niche Loan Products: two approaches: secured loans by movable assets or receivables such as medical insurance; unsecured SME loans (via Shinsei Business Finance) Guarantees: extending solutions to partners via guarantees on secured movable equipment loans

Consumer Commercial Finance: Key Actions in Fiscal Year 2007 Transformation businesses to optimally manage risk deliver growth Objectives Transformation Transformation the the business business model model at at APLUS APLUS Deliver Deliver OBP OBP growth growth across across all all business business lines lines Manage Manage risk risk for for optimal optimal return return Actions Accelerating APLUS transformation to become leading Accelerating APLUS transformation to become leading Shinpan partner Shinpan partner Reconfirm core strategy B2B2C business model with Reconfirm core strategy B2B2C business model with merchants as primary customers (fewer but better merchants as primary customers (fewer but better merchant partners) merchant partners) Redefine/Exp banking partners as new origination Redefine/Exp banking partners as new origination partners for secured unsecured white zone partners for secured unsecured white zone customer finance customer finance Improve B2C marketing strategy including better CRM Improve B2C marketing strategy including better CRM 1 1 risk selection risk selection Continue to screen M&A opportunities selectively Continue to screen M&A opportunities selectively under industry consolidation under industry consolidation Accelerate the introduction a new flexible Accelerate the introduction a new flexible scalable operating platform scalable operating platform Apply Shinsei compliance stards to monitor risk Apply Shinsei compliance stards to monitor risk control control 1 Customer Relationship Management 15

Retail Banking: Revenue Breakdown Revenue diversification one key to future performance Revenue Revenue Breakdown Breakdown by by Products Products 1 1 50.0 40.0 30.0 37.5 16.5 12 months 42.4 18.3 36.1 9.6 Deposit Debentures Non-Interest income Increasing revenue diversification to reduce dependency on structured deposits 3 months 20.0 10.0 0.0 13.3 14.6 12.9 6.0 7.4 9.3 1.9 3.2 2.6 FY2004 FY2005 FY2006 Deposit Debentures Net Interest Income Asset Management Loans 20.0 10.0 0.0 10.5 9.1 3.7 0.7 4.0 3.3 2.1 3.0 1.2 1.3 1QFY2006 1QFY2007 1 Management accounting basis, each product sum does not add up to total due to rounding 16

Retail Banking: Exping Retail Franchise Continuous growth in customer base, AUM loans Growth in AUM Growth in AUM 1 1 Number PowerFlex Accounts Number PowerFlex Accounts JPY TN Accounts (Thouss) JPY TN Accounts (Thouss) Growth in Housing Loans Growth in Housing Loans Customers Customers 5.0 2,500 600 30,000 4.0 2,000 500 25,000 3.0 1,500 400 20,000 300 15,000 2.0 1,000 200 10,000 1.0 500 100 5,000 0.0 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 0 0 Mar-04 Mar-05 Mar-06 Mar-07 0 Total AUM (lhs) Number accounts (rhs) Balance (lhs) Housing Loan Customers (rhs) 1 Assets under management 2 Structured deposits, foreign currency deposits mutual funds 17

Retail Banking: Products Mix Growth Potentials Value added products key to enhancing customer pritability Products Products Mix Mix Growth Growth Potential Potential Product strategy to boost pritability: Growth Potential High Domestic mutual fund Deposits: Important source funding for the Bank but decreasing our dependency on structured deposits Mortgage loan Consumer loan Small Foreign mutual fund Annuity/Insurance Yen time deposit Cash Flow Generation Large Foreign currency deposits Mutual Funds: Leveraging relationships with global fund providers to fer best in class product range Annuity/Insurance: Enhancing consultation internet ferings to promote insurance products Debenture Other structured deposits Mortgage Loan: Continued volume growth boosting retail asset base Low Powered One type structured deposits Consumer Loan: Consumer loan product fering to grow retail asset base 18

Retail Banking: Key Actions in Fiscal Year 2007 Increase customer focus to improve pritability Objectives Improve Improve customer customer relationships relationships increase increase total total assets assets under under management management Loan Loan asset asset growth growth development development Carefully Carefully manage manage expenses expenses employ employ cuttingedge cuttingedge IT IT solutions solutions Actions Future Future relationship relationship with with customers customers Enhance Enhance core core customer customer relationship relationship management management Provide Provide intensive intensive consultation consultation services services Exp Exp additional additional special special services services for for core core customers customers Enhance Enhance mortgage mortgage loan loan sales sales process process Enhance Enhance agility agility credit credit review review process process Further Further speed speed up up application application screening screening contract contract procedures procedures Improve Improve SFC SFC 1 1 sales sales framework framework staff staff skills skills in in order order to to explore explore follow follow up up on on mortgage mortgage prospects prospects Hold Hold down down fixed fixed expense expense control control variable variable expense expense increase increase Return Return to to pritability pritability in in fiscal fiscal year year 2007 2007 1 Shinsei Financial Center 19

U.S. Residential Mortgage Exposure Limited exposure to U.S. sub-prime loans U.S. U.S. Residential Residential Mortgage Mortgage Exposure Exposure Breakdown Breakdown US$ MN US$ MN As June 2007 248 (JPY 29.5 BN 1 ) Investment grade U.S. residential mortgage-backed securities Less than 0.5% total consolidated assets Includes a minority portion sub-prime loans 52 (JPY 6.1 BN 1 ) 154 (JPY 18.3 BN 1 ) Fund investment whose underlying assets are predominantly composed U.S. residential mortgage-backed securities Exposures to U.S. entities whose primary business relates to residential mortgage finance related services Recorded US$29 Million mark-down related to investment (already reflected in consolidated P/L as the end March June 2007) 1 US$ = 118.99 (as July 31, 2007) 20

Capital Adequacy Risk Capital Proactively managing strong capital base Regulatory Regulatory Capital Capital Ratio Ratio % % 25% Risk Risk Capital Capital Allocation Allocation by by Risk Risk Category Category by by Business Business (as (as March March 31, 31, 2007) 2007) 700 20% 15% 10% 5% 20.1% 14.3% 21.1% 16.2% 9/04: Acquisition APLUS 3/05: Acquisition Showa Leasing 7.0% 11.7% 10.3% 15.5% 8/06: Repurchase public fund preferred stock 8.1% 13.1% 13.0% Target Total Capital Ratio (12%) 7.9% Target Tier 1 Ratio (7-8%) 600 500 400 300 200 100 Tier 1 Capital 620 Excess Capital 163 Other Risks 51 Structured Credit Other Investment Risk 170 Credit Risk 234 Excess Capital 163 Others 46 Consumer Commercial Finance 119 1 2 Institutional Banking 291 0% Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Jun-07 Tier 1 Ratio Total Capital Ratio 0 1 Deferred Tax Assets 1 Other risks are comprised operational risk (JPY22 Billion), liquidity risk (JPY19 Billion), interest rate risk (JPY 5 Billion) market risk (JPY4 Billion) 2 Others include Risk Capital utilization in Retail Banking ALM/Corporate/Other 21

Forecast Fiscal Year 2007 Return to pritability Consolidated Forecast () Ordinary business prit expected to grow in all three business pillars 130.0 80.0 FY2006 Actual FY2007 Forecast 72.0 83.0 Net income forecast for fiscal year 2007 is JPY 72.0 Billion reflecting year-on-year growth excluding charges relating to consumer finance business 30.0 35.3 Return to pritability in fiscal year 2007-20.0-70.0-60.9 Net Income Cash Net Income 22

Key Takeaways Committed to Sustainable Growth Shinsei Bank remains committed to delivering sustainable long-term pritable growth based on a three pillar business strategy Institutional Banking Focus on pritable customers partnerships Exp businesses Strengthen capital markets capability Consumer Commercial Finance Accelerate APLUS transformation Deliver top line growth across all business lines Manage risk for highest return Retail Banking Enhance customer relationships pritability Exp loan asset business Manage expenses 23

Disclaimer These slides contain statements that constitute forward-looking statements, plans for the future, management targets, etc. relating to the Company its subsidiaries. These forward-looking statements are based on current assumptions future events trends, which may be incorrect are subject to risks uncertainties. Actual results may differ materially from those in such forward-looking statements as a result various factors. Unless otherwise noted, the financial data contained in these materials are presented under Japanese GAAP 1. The Company disclaims any obligation to update or to announce any revision to forward-looking statements to reflect future events or developments. Unless otherwise specified, all the financial information is shown on a consolidated basis. Information concerning financial institutions other than the Company its subsidiaries are based on publicly available information. These materials do not constitute an invitation or solicitation an fer to subscribe for or purchase any securities neither this document nor anything contained herein shall form the basis for any contract or commitment whatsoever. 1 Generally Accepted Accounting Principles 24

Contact information for Investor Relations For further questions, please contact: Shinsei Bank, Limited Group Investor Relations Division Tel: +81-3-5511-8303 Fax: +81-3-5511-5505 IR URL: http://www.shinseibank.com/investors/en/ir/ Raymond Spencer, General Manager Raymond.Spencer@shinseibank.com Yasuhiro Fujiki, Hiroshi Ishii, Deputy General Manager Yasuhiro.Fujiki@shinseibank.com Deputy General Manager Hiroshi.Ishii02@shinseibank.com 25