Mebuki Financial Group, Inc.

Financial Resultsfor FY2021(IR Presentation Material)

0１．Main Points of FY2021/ Summary of Second Medium-Term Business Plan
Highlights

3

２．Long-Term Vision 2030 / Third Medium-Term Group Business Plan
Long-Term Vision 2030

26-27

FY21 Financial Results /Ordinary Profit /Core Net Business Income

4-6

Third Medium-Term Group Business Plan / Basic Strategy

28-29

Loans /Average Yield of Loans /Net Interest Income/ Deposits

7-10

Basic Strategy 1
Pursue a business model to support local communities

30-35

Customer Assets under Custody /Fees from Corporate Customers

11-15

Basic Strategy 2
Build a sustainable management base

36-40

Securities / Strategic Shareholdings /Expenses / OHR

16-19

Basic Strategy 3
Develop human resources and promote active participation

41

Credit Related Costs /Status of Non-performing Loans and Delinquent Loans

20-21

Business Objectives / Main Performance Targets

42

３．Value Creation Process / Initiatives for Sustainability

Shareholder Returns / Capital Adequacy Ratio

22

Forecast for FY2022

23

Value Creation Process

Summary of Second Medium-Term Business Plan

24

Sustainability Policy / Initiatives for ESG・SDGｓ

45-47

Initiatives for Sustainability / Response to Climate Change

48-52【Reference】 Financial Data for FY21

44

54-58

1

１．Main Points of FY 2021
Summary of Second Medium-term Business Plan

22

Highlights
Results for FY21
Results for FY21

YoY Change

compared to Forecast

Consolidated net income (*1）\42.9bn+\6.4bn+\4.9bn

Core net business income （*2）（Banks' total）\84.2bn+\14.8bn-

Credit related costs （Banks' total）\19.6bn-\2.8bn-\0.3bn Consolidated net income(*1） was ¥42.9 bn (+¥6.4 bn YoY).
 Core net business income(*2), indicating the profitability in core business, increased by ¥14.8bn YoY due
to improvement of security margins and increase of net fees and commissions reflecting the success ofstrengthened consulting, as well as cost reduction.

 Credit related costs were ¥19.6bn, decreasing by ¥2.8bn YoY.
（*1） Attributable to owners of the parent（*2）Excluding gains /losses on cancellation of investment trusts

Forecast for FY22
Forecast for FY22
Consolidated net income (*3）

YoY Change\45.0bn+\2.0bn We expect forecast for FY22 based on currently available information.
 If the circumstances change, we will immediately revise the forecast as necessary.
（*3） Attributable to owners of the parent

3

Main Points of FY21 Financial Results
Mebuki FG (Consolidated)

（\bn）

FY21
Gross business profit
Net interest income
資金利益

YoY
Chg

towardforecasts【Joyo + Ashikaga (Non-consolidated)】

+6.5
+4.8

-

(-105.6)(-1.0)-Net interest income

+1.6
+0.2
-0.2
-1.1
（＊１）
-1.8
-0.0

-

Net interest income

Gains/losses related to stocks

40.3
4.5
-5.3
114.6
21.5
3.5

Ordinary profit

64.9

+10.8

+9.9

Net fees and commissions
資金利益
Net trading income
Net other business income
ExpensesCredit related cost

Extraordinary income/losses

Net income(*)

-4.2

42.9

（*） Attributable to owners of the parent(exclu.Gains/losses on cancellation of investment trusts)

Mebuki Securities
Mebuki Credit Guarantee
Mebuki Card
Total of banking subsidiaries

5.9
0.6
1.6
1.5
0.2
1.7

+9.7

-

(o/w Defference of interests betw een loans and deposits)(104.5)(-0.9)(o/w Securities Income)(51.4)(+10.7)(o/w Gains/losses on cancellation of investment trusts)(1.7)(-5.0)Net fees and commissions
Net other business income

33.7
-4.5

+2.3
-0.1

(-7.1)(-0.8)

-2.3

108.1

-1.9

+6.4

Net business income(before general allowance for loan losses)

78.8

+8.8

-

Core net business income

86.0

+9.7

-

Ordinary profit

84.2
1.4
77.4
-16.9
18.1
3.5
60.4

+14.8
-0.7
+9.6
-5.0
-2.0
-6.5
+4.5

+7.4

Extraordinary income/losses

-4.2

-6.4

Net income (Group total)

40.0

-2.1

Credit related cost (J + A) (a)+(b)

19.6

-2.8

+4.9

-2.6

(o/w gains/losses on bond transactions)(excl. gains/losses on cancellation of investment trusts)

Net transfer to general allowance for loan losses (a)Net business income
Net non-recurrent gains/losses
o/w Disposal of non-performing loans (b)o/w Gains/losses related to stocks, etc.

Group Companies Net income
Mebuki Lease

156.0

Expenses【 Consolidation adjustment 】 -\3.0bn

45.9

Gross business profit-

Adjustments related to securities,etc.

Banks+Group companies

187.0
157.7

YoY
towardforecasts
Chg
+6.8
+4.6
-

FY21

194.5
155.0

(o/w Defference of interests betw een
loans and deposits)

（\bn）

-0.5
-0.1
+0.1
+0.1
-0.1
-0.5

+3.5

4

Change of Ordinary Profit (Bank Total)
Core net business income excluding gains/losses on cancellation of investment trusts increased +\14.8bn YoY
mainly due to increase of security margins, net fees and commissions, and cost reduction.
On the other hand, ordinary profit increased +￥4.5bn YoY due to flexible securities' operations based on themarket conditions and the outlook for the future (gains/losses on securities -￥12.4bn)

Year-on-Year Changes of Ordinary Profit (Bank total)
資金利益の増減要因

(\bn)

Gains
/losses on
Credit related securities(*1)
costs（-）
Increase

Decrease
Security
margins

Net fees andcommissions+2.3

Net trading
incomeExpenses（-）+0.7

Deference ofinterests
betweenloans andOrdinary profit depositsNetnon- recurrent
gains/losses (*2) Ordinary profit-0.5¥60.4bn

YoY+¥4.5bn-0.9Core net business income
excluding gains/losses on cancellation of investment trusts+ ¥ 14.8bn YoY
FY20

-12.4

-1.9

+10.7

¥55.9bn-2.8

Credit related costs ＋Gains/losses on securities- ¥10.2bn YoY(*1) Gains/losses on cancellation of investment trusts +Gains/losses on bond transactions +Gains/losses related to stocks(*2) Including (-)¥ 1.5bn of costs related to liability for retirement benefits, ¥ 0.9bn of gains on equity options etc.

FY215

Change of Core Net Business Income (Excluding gains/losses on cancellation of investment trusts)
Since the founding of Mebuki FG in FY2016, core net business income increased by ￥22.7bn compared to
FY2016, due to ensuring synergy effect through the integration and the progression of structural reform.

Core Net Business Income※ (Joyo+Ashikaga)

Increase

Core netbusiness
Expenses(※)
income（-）

Decrease＜Factors of Change ＞-6.8 ¥84.2bn

Security +6.1

Compared
to FY16+¥22.7bn+1.8

Deference
margins
Core net of interests
business between +14.7
loans andincome(※) deposits

-6.8

FY16

FY16

FY21
Factors

Net fees Net tradingandincomecommissions¥61.4bn（\ bn）

FY21

Chg
Difference of interests
between loans anddeposits

111.4

104.5

Lower domestic interest-6.8 rates

Enhancing asset management,+14.7 Flexible operations according tomarket conditions

Securities' margin*

36.6

51.4

Net fees andcommissions

27.6

33.7

+6.1 functions

Net trading income

0.7

2.6

+1.8 FX and derivatives

Strengthening consulting

Strengthening earnings in

Progression of structural-6.8 reform, Improvement of
productivity

Expenses(-)

115.0

108.1

Core net businessincome61.4

84.2 +22.7（*）Excluding gains/losses on cancellation of investment trusts(At the time of business integration)

6

Loans （１） Term-end Balance
Amount of loans increased by \30.6bn YoY (+0.2% annualized).
Loans to individual customers increased due to increase mainly of housing loans and unsecured loans by\120.5bn YoY (+2.4% annualized). Loans to corporate customers decreased due to the peaking out of
COVID-19 related financing by \22.2bn YoY (-0.4% annualized).

Term-end
Balance (Joyo+Ashikaga) (\bn)
資金利益の増減要因

Year
on Year Changes
資金利益の増減要因(\bn)＊Not including borrow ing from special account of MoF（＋0.2%）（＋30.6）（＋2.9%）（＋320.6）

10,852.3

10,957.5

11,278.1

11,308.8

Total

Corporate
5,139.1

5,181.3

5,369.6

5,347.4

Corporate

Individual
Individual

PublicPublic4,674.8

4,795.9

4,924.8

5,045.4

1,038.2

980.2

983.7

915.9

FYE18

FYE19

FYE20

FYE21

(FYE20)¥ 521.5bn(FYE21)¥ 586.7bn

Loans to ‘borrowing from special account of MoF(FYE18)(FYE19)¥399.4bn¥ 519.8bn

Mar-20Mar-21

Mar-22+105.1+320.6

+30.6

+0.9%

+2.9%

+0.2%

+42.1

+188.3

-22.2

+0.8%

+3.6%

-0.4%

+121.1+128.8+120.5

+2.5%

+2.6%

+2.4%

-58.0

+3.4

-67.7

-5.5%

0.3%

-6.8%

7

Loans （2） Individual and Corporate Loans
Loans to individual customers increased driven by housing loans (+\149.1bn) and car loans (+\8.1bn).
Loans to corporate customers decreased due to the peaking out of COVID-19 related financing.
【Individual】Housing Related Loans

4,357.9
2.9
958.5

4,483.0
2.8
933.6

4,616.7
2.6
902.3

4,734.5
2.4
871.2

(￥bn）

loans for asset
building

Apartment Loans

3,396.3

3,546.5

3,711.7

3,860.8(-3.4%)（-31.1）【Corporate】Term-end Balance by Company Size

5,139.1

5,181.3

5,369.6

5,347.4
Large

1,633.7

1,635.4

1,688.2

1,674.3

3,505.4

3,545.9

3,681.3

3,673.0

FYE18

FYE19

FYE20

FYE21

FYE18

FYE19

FYE20

FYE21

【 Individual】Unsecured Loans

160.0
65.0
9.1
39.0

169.9
65.4
9.8
42.5

177.1
61.2
9.1
43.4

46.7

52.0

63.3

FYE18

FYE19

FYE20

(￥bn）

188.6
62.4
9.3
45.4
71.4

(-0.2%)（-8.2）【Corporate】Term-end Balance by Area(￥bn）

Card Loans(+1.8%)（+1.1）

5,139.1

5,181.3

5,347.4

Tokyo

Free Loans(+2.5%)（+0.2）

5,369.6

1,908.8

1,967.5

2,021.9

2,009.4

3,230.3

3,213.8

3,347.6

3,337.9

FYE18

FYE19

FYE20

(-0.6%)（-12.4）

Educational Loans(+4.6%)（+2.0）(+12.8%)（+8.1）

Local(-0.2%)（-9.7）Car Loans
FYE21(-0.8%)（-13.9）Medium / SMEs

Housing Loans(+4.0%)（+149.1）

(￥bn）

FYE21

8

Average Yield of Loans / Net Interest Income
Difference of interests between loans and deposits decreased by \0.9bn YoY due to decrease of average yield on
loans. However, the decline of domestic loans' yield improved from 3.5bp to 2.1bp.
Securities' income decreased by \10.7bn YoY due to increase of profit dividends to from an increase in securities
balance, and decrease of market borrowings.

Average
Yield on Loans(Joyo+Ashikaga)
資金利益の増減要因(\bn)

Change of Interest Income(Joyo+Ashikaga)＊Not including borrowing from special account of MoF＊Figures in parentheses are changes on a year on year basis(Domestic and Overseas)＊Not including borrow ing from special account of MoF

Results

YoY Change(Factor)
Avg
Balance

2.92%
2.67%

105.3
0.7
104.5

-0.9 -1.0

Yield

Interest on deposits (－)
Difference of interests between
loans and deposits【Overseas】

1.04%

1.02%

0.96%

1.03%

0.99%

0.96%

【Domestic＋
0.94% Overseas】

0.93%【Domestic】

Chg. in
Factors+1.0 (+103.4)-2.3 (-2.1bp)
－
-1.3
-0.2
－

Overseas

Chg. in
Factors(+3.2)+0.0-0.5 (-25.1bp)
－
-0.4
-0.5
－

－ +0.0－(+92.5)(-4.3bp)48.7+3.4 +1.7 (+181.8) +1.7
-4.0 -3.7 (-11.9bp) -0.3
-0.6 -2.0－ +1.41.7-5.0 -5.0－ +0.0－(excluding gains on cancellationof Investment Trusts）

46.9+4.4 +3.0－ +1.4－Market borrowings, etc. (－)-4.4-6.2 -5.0

－

-1.2

－

51.4

+10.7 +8.1

－ +2.6－156.0+9.7 +7.0－ +2.6－①

Avg
Balance

Interest and dividend on
securities

1.29%

Domestic

+1.0
-2.8
-1.7
-0.8

Interest on loans andbills discounted

1.06%（\ bn）

Yield(o/w gains on cancellation of
Investment Trusts)－

Securities' Income-3.5bpFY18-3.5bpFY19(excluding gains on cancellation of
Investment Trusts）-2.1bpFY20②

Net Interest Income

FY21(excluding gains on cancellation of
Investment Trusts）①+②

9

Deposits Term-end Balance
Amount of deposits increased by \599.8bn YoY (+3.6% annualized).
Deposits from all customers remains in an increasing trend.
Year
on Year Changes
資金利益の増減要因

Term-end
Balance (Joyo+Ashikaga) (\bn)
資金利益の増減要因（＋3.6%）（＋599.8）（＋9.9%）（＋1,470.9）

Mar-20

16,257.4
14,438.3

14,786.5
3,887.4

3,325.5(\bn)

16,857.3

Total

3,953.5

Corporate

3,364.1
Corporate

Individual
Individual

Public11,400.1

11,787.3

10,362.7

10,685.0

750.1

737.3

969.9

1,116.4

FYE18

FYE19

FYE20

FYE21

Mar-21

Mar-22+348.1 +1,470.9+599.8

+2.4%

+9.9%

+3.6%

+38.6

+523.2

+66.1

+1.1%

+15.5%+1.7%+322.3+715.0+387.2

+3.1%

+6.6%

+3.3%

-12.7

232.6

+146.5

-1.7%

31.5%

+15.1%

Public10

Customer Assets under CustodyAmount of customer assets under custody increased by \177.6bn YoY (+8.7% annualized) and related fees
increased by \1.96bn YoY (+13.1% annualized).
We have enhanced to maintain contact points with customers by using non-face-to-face channel and strengthen thecollaboration between the two banks and Mebuki Securities in our group.

Balance（Bank Total + Mebuki Securities）

Commissions（Bank Total + Mebuki Securities）

(\bn)

(\bn)

（+8.7%）（+177.6）（+13.1%）（+1.96）
Mebuki Securities

2,206.3
2,038.3

2,028.7
1,880.9

272.8
173.6
218.5

16.90

156.2

162.4

3.70

Mebuki
Securities

13.84

154.5

JGB etc.

1.94

2.98

0.49
0.98

0.72
0.68

131.1

146.0

166.1
858.5
817.2

14.93

429.5
343.4

282.0

14.66

Foreigncurrency
deposits
Insurance

829.0

4.67

4.26

3.87

1.13
0.55

JGB etc.

3.25

Foreign currency
deposits

3.25

Investment
trusts

556.1

FYE18

632.5

463.7

547.7

FYE19

FYE20

FYE21

FY18

5.91

6.22

FY19

FY20

Financial
instrument
intermediaryservice

1.19
0.61

812.6

5.69

Sales increased
by collaboration
between banking
and securities

7.93

FY21

Maintained
contact points
with customers
by using non
face-to-facechannelInsurance*Excl. executive
life insurance
Investment trust(Salescommission+ Trust fee)11

Customer Assets under Custody
We reorganized sales systems and strengthened collaboration among group companies for enhancement of consulting
services.
We meet asset building needs by strengthening consulting services that begin with customers' life planning counselling.

Development of Consulting Services(Customers：number, Transaction Amount：¥bn）Introduce local life plan advisor systemReinforce non face-to-face sales using online seminers andvideo content(FY2020~)Accumulation Service (Bank total)(FY2019 ~)
100,863

Number of

87,463New establishment of specialized division to provide
consulting services for individuals (FY2020 ~）69,271

Enhance collaboration among Banks and Mebuki Securities
regarding customer information(FY 2020 ~)26.3

69,840

Customers

76,74433.0

Transaction

25.8
21.7

Amount19.6

Establishment of company specialized in financial
instruments intermediary services via website (FY2021～)
FY17

Growing Needs for Asset Management by young andasset-building demographics

FY18

FY19

FY20

FY21

Balance of Customer Assets under Custody(Mebuki Securities)(Customers：number, Balance：¥bn）

65.6%
59.6%
56.3%
54.5%

69.4%
68.6%
66.1%

60.3%

Ratio of new customers
under the age of 60 25,000
who newly started
20,000accumulation services

22,24819,59914,615'20/1Q 2Q

3Q

429.6

4Q '21/1Q 2Q

3Q

4Q

272.8

400.0
300.0

343.4

10,000600.0Number of
500.0Customers

16,692

15,0005,000

24,665

Balance

282.0

200.0

204.3

100.0

0

0.0
'18/3

'19/3

'20/3

'21/3

'22/3

12

Fees from Corporate Customers
Fees from corporate customers increased by \1.92 bn YoY (+20.4% annualized).
Credit related fees increased by \0.52 bn YoY due to strenghtening derivatives trading proposals that take into
account market trends. Consulting related fees increased by \1.40bn YoY due to strengthening various
business support for business matching for expanding supply chain, digitalization and human resources
introduction as well as business planning and finances.

Joyo Bank + Ashikaga Bank

＜Breakdown of Fees from Corporate customers＞

(\bn)

FY19

（+20.4%）（＋1.92）

11.37■Business

9.59
2.02

9.65
1.44

9.44

3.29

1.88
■Credit
Related

7.57

8.20

7.55

8.08

7.55

8.08

+0.52

Derivatives
Syndicate loans
Private placement bonds

1.14
5.70
1.35

0.78
5.31
1.45

1.61
4.99
1.48

+0.82
-0.31
+0.02

Consulting related (2)

1.44

1.88

3.29

+1.40

Business Matching
Support for business Planning
M&A
Executive Insurance
Trust ・401K

0.58
0.43
0.30
0.12

0.72
0.10
0.51
0.43
0.11

1.02
0.84
0.72
0.55
0.13

+0.30
+0.74
+0.21
+0.11
+0.02

Total（(1)+(2)）

9.65

9.44

11.37

+1.92

【Business Matching, Support for Business Planning, etc.】


FY19

FY20

FY21

YoY

8.20




FY18

FY21

Credit related (1)SupportRelated

FY20

Support for expanding sales channels and suppliers
Introduction of core systems for sales and production management aswell as systems for efficiency of back office operations such as
personnel and attendance management
Support for human resources introduction to meet customers’
employment needs for “senior management” or “professionals”
Support for business planning, financial planning and applying for
13
public loan programs, etc.

Fees from Corporate Customers
We are providing various solutions to meet customers' management issues as an overallmanagement consultant through escorted support .

Reorganization for Consulting Services
Business Matching

Establishment of consulting business division for responding tocorporate customers’ business expansion(HR introduction, IT, Manufacturing technology, Overseas support,
Business matching, M&A, IT/digitalization support etc.)(FY2020~ )



3,506

3,311
2,368

Number of
有償ビジネス
paid contracts
マッチング

2,552

1,715

Establishment of an industry specific consulting section(Research, analysis, and business support for industrial structure change)(FY2021~ )FY17

Escorted Support

FY18

FY19

FY20

FY21

Human Resources Introduction（Number of contracts)

142
Management

Keyissues Securing
management
resources Stable funding Executable
planning Businesssuccession(absence of
successors,dispersed
shares)129

Consulting section(collaboration with related sections)

Escorted Support

Concrete Support

 Providing solutions bymatching business partners
 Support for enhancing
productivity using
subsidies, etc.
Regular discussion
 Addressing managerial
issues by macroeconomic
environmental analysis, etc.
 Panning growth strategies,
financial restructuring
 Expert advice such astechnical evaluation by
Establish
External strategic
external expertsbusiness plan

partnership

94

52

55

29

1H19

Human Resources
Introduction

46

40

o/w Leading Talent
Matching (*)

23

2H19

1H20

2H20

1H21

2H21

(*) The Bank, which is involved with local companies, clarifies their management issues and engages in
research and analyze their human resources' needs. The leading talent matching is an effort that the
Bank introduces high-level managerial human resources in collaboration with employment placement
14
business providers.

Fees from Corporate Customers
We have discussions with customers on core topics such as business prospects and strategies for the future.
We are sharing various issues with our customers and providing proposals for their optimized solutions.
Support for Business Planning and Consulting for
Business Succession

Proposals for Business Succession's Scheme（Number of proposals)

700（Number of contracts, ¥ mil）

552

300
100

820

817

500
成約件数
Contracts
事業承継コンサルティング
Consulting
for business succession,＋for business planning+ Support
事業計画策定支援340
15

Proposals for BusinessSuccession's Scheme

761

-100
-300
-500

収益額
Profit
事業承継コンサルティング
Consulting＋ for business succession+Support
for business planning
事業計画策定支援

18
FY20

FY21

Fact finding/Confirm direction

Planning
Support/Proposal
Analysis
ReportSupport for businessplanning

SupportContract

Fact finding/Possible Cause(Meeting several times)（Number of consultations)① Hearing for fact finding② Analysis Report(Overview of strong point and issues)
SWOT analysis, Market/ Business domain,
Existing products/ customers, Choice of new
products/ channels, etc.
③ Sharing the direction to aim forDevelop Business Policy/
Profit Plan/ Action Plan

1,459
1,226
M&A
Consultations

917
771
606

Planning Support~Business Planning~①Understanding real factorsthat are difficult to grasp in thebusiness evaluation②Realization of target
products and customers③In-Depth financial planning④Integrity between qualitative
policy and numerical plan
⑤Strategy and Action

2H21~ Fact finding/Financial andBusiness analysis~

Business Evaluation
Business
Evaluation

1H21

M&A Consultations

Support for Business Planning
Interview withcustomer

2H20

DevelopBusiness Plan
Business
Plan

Current
situation
Plan 1
Plan 2
Plan 3

FY17

FY18

FY19

FY20

FY21

15

Securities / Strategic Shareholdings
Unrealized valuation gains/losses on securities decreased YoY since domestics and overseas longterm interest rates rose.
We continue to reduce strategic shareholdings. We reduced \21.2bn / 24 issues in FY21.

Balance(Carrying amount) (Mebuki FG)（\bn）

Unrealized valuation gains/losses on available for sales securities(Mebuki FG)（\bn）
Investment
trusts, etc.

210.7
174.9
4,346.6
799.8
280.2
829.6

2,436.8FYE184,076.1
658.9
226.0
831.6

2,359.4FYE194,333.2
597.2
265.8
959.5

4,682.3
715.5
254.1
967.3

Investment
trusts, etc.

7.2

Stocks

136.2

FYE20

2,745.1

Domestic
bonds

99.1

StocksForeign bonds

139.4

10.3
21.1

FYE18

131.5

24.3
9.2
(21.3)

35.6
2.4

FYE19

FYE20

（Reference） Deferred gains (losses) on hedges¥0bn-¥0.8bn¥1.5bn

FYE21

128.9
32.9

86.9

Foreign bonds

2,510.6

33.1

Domestic
bonds(21.3)(14.2)（*1） We use derivatives to hedge
fluctuations in the fair value of
securities. Although unrealized
FYE21
valuation gains/losses on fixedbonds decreased due to risinginterest rate, that on derivatives¥3.3bn （*1）
improved.

Gains and losses on securities (*3) （\bn）

Strategic Shareholdings （\bn）
25.5%
20.8%

20.1%

221

184

119.1

160

106.8
92.0

70.7

FYE18

FYE19

FYE20

6.8
Ratio to net assets（*2）（Listed + Unlisted）

204

FYE21

Gains/losses oncancellation of
investment trusts

11.6

16.9%

Number of issues（Listed stocks）
Balance（Listed stocks）

10.7

7.3

10.0
0.4
(2.0)

(10.7)

1.7

3.5
(6.2)

(7.1)
Gains/losses on
bondtransactions

FY18

FY19

FY20

FY21

¥11.6bn¥5.6bn¥10.6bn-¥1.8bn（*2） The ratio of balance sheet amounts of strategic shareholdings to consolidated net assets (based on Securities Report)

Gains/losses
related to stocks

Gains and losses
on sales(*3) gains/losses on stocks + bond transactions +cancellation of investment trusts

16Expenses / OHR
Total expenses decreased, mainly in personnel expenses, due to the progression of efficiency in branch
offices' operations and rationalization of head office and group companies by acceleration of thestructural reform.
OHR, indicator of efficiency, declined by about 5 percentage points YoY and improved significantly.

Joyo Bank + Ashikaga Bank

(\bn)

63.5%
61.8%

60.7%

61.3%

61.3%

(vs Core Gross Business Profit(＊1)）

System integration（+0.7%）（+0.8）

114.1

56.2% ● OHR

59.6%

54.5% ● OHR(vs Core Gross Business Profit(＊2)）（-1.8%）（-1.9）（-4.2%）（-4.8）

115.0

FY21

110.1

108.1
■Personnel

60.6

61.2

＜Factors of Change ＞

59.9

58.2

(-2.8%)（-1.6）■Non-personnel(-0.0%)（-0.0）

46.1

46.7

43.4

43.4

7.3

7.0

6.8

6.5

FY18

FY19

FY20

FY21

¥1.9bn¥3.9bn¥3.1bn¥3.1bnYoY

Main factors

Personnel
expenses58.2

 Personnel reduction -1.0
（Improvement of productivity by the
progression of structural reform in branch-1.6
offices, head office, and group companies)
 Retirement benefit cost -0.6

Nonpersonnel
expenses

43.4

-0.0

Taxes

6.5

-0.3  Stamp tax, Fixed assets tax, etc. -0.1

 Reduction of rental expense by reviewing
branch networks -0.2, others■Taxes(-4.3%)（-0.3）
Systemintegration
expenses（*1）Excluding gains /losses on cancellation of investment trusts（*2）Excluding gains /losses on cancellation of investment trusts and system integration expenses

17Expenses / OHR
We succeeded in reducing the amount of work through streamlining of head office and group companies, andincreasing the efficiency of branch operations.
Although total staff decreased because of retirement, we improved profitability of core business by enhancing
productivity.
Progressof Operational Efficiency in Branch Store
グループ会社の状況（Volume of operations ：thousand hours）

1,775

Reduction
1,673

1,565

-33.5％

1,519
1,304

2H19

1H20

2H20

1H21

Regularemployee

10,250

6,500

6,400

Mar.2019

Mar.2020

9,900

・Unification and rationalization of business processing
and IT departments
・Consolidation of head office functions and subsidiaryfunctions and streamlining operations
・BPR and digitization of branch office operations
・Optimizing branch networks

Invested ＋200people
・Enhancement of consulting function
・Strengthening IT planning and IT consulting
・Securities investment, structured finance,
new fields

2H21

Changeof Total Staff
資金利益の増減要因
10,500

Achievement(３ years cumulative)

Freed-up -1,000people

1,179Time ofoperationsin branch
store

1H19

3 Year Plan

net -800poeple

Freed-up -1,200people
Invested＋200people（Consulting field＋170people）

net -1,000people

As of Mar.31, 2022
-1,000（Compared toMar.31,2019）

9,500

Less than
9,700【People】
Hired
+240

6,200
Mar.2021

Retired
-140

6,000

6,200

Mar.2022

Mar.2022(Mid-term plan)18

Expenses / OHR
We have promoted the optimization of branch network by reviewing and streamlining on a scale andspeed beyond the Medium-term Business Plan.
Therefore, we have realized freed-up staff and cost reduction ahead of schedule.

Streamlined
グループ会社の状況
Branch Store Layout (example)【Before】

Numberグループ会社の状況
of Branch Offices
Result
FYE18

Storage
ADDS

BTS
BTS

BTS

BTS

BTS

ATM
ATM
ATM

BTS ：Banking Teller Station (terminal at counter)
ADDS：Open Teller System

Office work
space
Self-counter
Terminal

Mobile PC

Semi-self counter
ATM in lobby

Mobile PC

Mobile PC

Consultation spacechangeDomestic Branch Network

337

319

-18

Real branch offices

313

251

-62

In-store branches

24

68

＋44

Self-counter Terminal【After (Current) 】

Mobile PC

Forecast
FYE21

Self-counter
Terminal●Effect of Cashless, Utilization of mobile PC/Tablet
 Removal of ADDS, reduction of large number of BTSs
(eliminating office work space, branch operations by small numberof staff)
 No cash vault (storage) (reducing administrative burden,
outsourcing cash management of ATMs)
 Reducing paper-based processes (paperless, reducing burden on
customer and administrative burden)
 Expansion of space for consultation
19

Credit Related Costs
Considering the impact of the COVID-19 pandemic and the situation in Ukraine, credit related costs
were preventively recognized by transfer to specific allowance for loan losses, etc.
Credit related costs in FY22 are expected to be \11.0bn, a decrease of \8.6bn YoY.
Changeof Credit Related Costs
資金利益の増減要因

Breakdownon Credit Related Costs
資金利益の増減要因

(￥bn)

(￥bn)

【Annual】FY09～
40.0

0.38%

35.0
30.0

27.4

0.18%

25.0

0.20%
0.18%
22.4

20.0

0.05%

15.0

FY21

Credit Related Costs
0.30%

22.4

19.6

-2.8

Net transfer to general allowance for loan losses
0.20%
Disposal of non-performing loans
0.10%Write off of loans
Transfer to specific allowance for loan losses
0.00%Transfer to provision for contingent losses
Recoveries of written-off claims(-)-0.10%
Other

2.2

1.4

-0.7

20.2
4.1
16.7
0.2
1.7
0.8

18.1
4.0
16.3
0.6
3.3
0.5

-2.0
-0.1
-0.4
+0.3
+1.5
-0.2

Credit cost ratio

31.5

13.7

FY20

YoY

0.40%

0.09%
0.09%
19.0
0.08%

19.6

13.7

13.2

9.5

10.0
4.5

5.0

7.9

11.0

9.3

4.5

0.0

-0.20%FY9

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22

【Quarter】FY17～

Change of terms and conditions of loans due to COVID-19

資金利益の増減要因(Cumulative total until Mar.2022)

8.7

9.0
7.7

6.8
5.7

5.1
4.2
2.9

3.5

3.4

4.7

4.1
2.8

2.2

(0.1)

0.6

0.9

loans

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

FY17

FY18

FY19

FY20

Business Customers

FY21

Contracts

Housing Customers
loans

Contracts

The ratioof totalcustomers

~1H20

2H20

1H21

2H21

1,307
4,099

629
3,288

558
4,151

362
3,355

2,856
14,893Around

433
477

189
252

190
256

140
194

952
1,179

Around

3.1

1.4

0.8

Cumulative
Total

5.1％

0.4％

20

Status of Non-performing Loans and Delinquent Loans
Amount of non-performing loans based on financial revitalization law and ratio rose due to the preventive reserve
carefully considering the impact of COVID-19 and the situation in Ukraine.
Although number of delinquent loans has remained flat and bankruptcies have remained stable, we continue tomonitor the impact of COVID-19 and the situation in Ukraine.

Non-performing Loans(\bn)(Financial Revitalization Law -FG consolidated)

1.53%

1.47%

173.3

169.8

15.9

12.7

1.53%
181.0

Bankrupt and

1.61%

13.8
151.1

125.1

129.0

143.2

32.2

27.9

27.4

27.6

FYE18

FYE19

FYE20

FYE21

bankrupt claims
Doubtful claims

3.3
Claims requiringsupervisionloan ratio

'17/3

1,400
1,000

84.6

148 154

118 126 120 111

140

170
111

100

400

19.4

31.6

FY10

FY11

FY12

FY13

30.9

FY14

120
70

200
FY09

'20/3

'21/3

'22/3

― Number of bankruptcies■ Amount of bankruptcies (¥bn)

1,600
1,400

153 147

1,200

148
119 121

1,000

130

210

144

160
106 102

103

89

95

95

110

800

49.1

600

0

220

70.8

800

'19/3

1,800

■ Amount of bankruptcies (¥bn)

138

112.0

1,200

'18/3

＜Tochigi（*1）＞― Number of bankruptcies
186 178

1.3

Number of bankruptcies(Total liabilities amounting to 10 million yen or more） ～by Tokyo Chamber of Commerce＜Ibaraki＞
238

1,600

0.5

2.6

2.0

1.2

Non-performing【Reference】Status of Bankruptcy
1,800

(\bn)

5.9

substantially

192.6

10.3

Status of Delinquent Loans to Businesses

FY15

19.4 16.7 15.2 17.1
FY16

FY17

FY18

FY19

9.1 14.8
FY20

FY21

20

600

60

50.3 46.4
30.6 33.7

400

25.7 30.7

200
-30

0

FY09

FY10

FY11

FY12

FY13

FY14

16.6
FY15

25.6 20.7

FY16

FY17

18.5 12.3

11.9 15.9 10

FY18

FY20

FY19

FY21

-40

(*1)Specific major borrower’s bankruptcy of ¥433.0bn in FY11 is excluded from figures below.

21

Shareholder Returns, Capital Adequacy Ratio
In FY21, year-end dividends of ¥5.5 (annual dividends of ¥11.0) per share have been decided.
We schedule annual dividends of ¥11.0 in FY22 taking into account stable dividends.

Shareholder Returns Policy
 We will target a Total Return Ratio(*1) of 30% or more while taking into account both the maintenance of solid
capital levels for future growth and the appropriate distribution of profits to our shareholders. We will continue toconsider the dividend level.
(*1) Total Return Ratio ＝ （Total amount of dividends + Total amount of acquisition of own shares）／Net income

Dividends, Shareholder Returns
40
35
30
25
20
15
10
5
0

AnnualDividends
PayoutRatio
Total Return
Ratio

Capital Adequacy Ratio

31.5

14.9

16.8

2.0

3.9

12.7

12.9

12.8

12.7

11.9

11.8

FY18

FY19

FY20

FY21

FY22
(Scheduled)

¥11.0

¥11.0

¥11.0

Dividends¥11.0

Mebuki FG（Consolidated)

Joyo（Consolidated)

Ashikaga(Consolidated)

FYE18

9.94%

11.91%

8.55%

FYE19(*2)

10.95%

12.22%

9.45%

FYE20

10.87%

12.18%

9.51%

FYE21

10.92%

12.34%

9.81%

Share Repurchase

19.5

\11.0
(scheduled)

27.8%

35.3%

34.9%

28.2%

26.3%

32.3%

46.2%

34.9%

73.3%

-

(*2) As of March.31,2020, Ashikaga Bank started to calculate risk-weighted asset
according to foundation internal rating-based approach (FIRB)

22

Forecast for FY2022
Mebuki FG(consolidated)（\bn）

Forecast for
FY22

FY21
Results

Total of Two Banking
Subsidiaries（\bn）

Forecast for
FY22

YoY

FY21
Results

YoY

Ordinary Profit

65.0

64.9

+0.0

Ordinary Profit

62.5

60.4

+2.0

Net Income

45.0

42.9

+2.0

Net Income

43.0

40.0

+2.9

(Credit Related Costs)

11.0

19.6

-8.6

(Attributable to ow ners of the parent)

Subsidiary Banks（Joyo）（\bn）

Forecast for
FY22

FY21
Results

YoY

（\bn）

（Ashikaga）

Forecast for
FY22

FY21
Results

YoY

Ordinary Profit

38.5

37.9

+0.5

Ordinary Profit

24.0

22.5

+1.4

Net Income

26.0

24.6

+1.3

Net Income

17.0

15.4

+1.5

23

Summary of Second Medium-term Business Plan
 Consolidated ROE and net income didn’t meet the plans since credit related costs increased more than planned
due to impact of COVID-19 from FY19, the first year of the second medium-term business plan.
 Due to strengthened consulting and acceleration of the structural reform, Core OHR was achieved as plannedand core net business income excluding gain/losses on cancellation of investment trusts, which indicates corebusiness profitability, exceeded plans.
(excluding gain/losses on cancellation of investment trusts)

FY18
FY21 Compared
Results Results to FY18
5.1％

Consolidated net income (*1)

Core net business income(excluding gain/losses oncancellation of investment trusts)

5.0％or more

¥46.3bn ¥42.9bn-¥3.3bnaround ¥47.0bn-6.1ptaround 60％¥70.5bn ¥84.2bn +¥13.7bn

70.5

68.1

-0.7pt

54.5％

－

FY17

FY18

(*1) Attributable to owners of the parent

69.4

30.0

36.3

20.0

19

36.4
22.4

(58.5)(65.5)
10.0

FY19

FY20

FY21

●Core net business income （Result）● Core net business income（ Medium-Term Plan）

Change Factors (compared to Plan)
Compared to Plan +0.8bn  Fees from corporate：＋¥1.2bn
Reorganization for consulting
36.4
services, and Strengthened
35.6
business support such as
35.3
business matching, businessplanning, M&A■ Fees from Customers（Results）(40.5)

46.3

9.3

42.9
19.6

7.0

7.5

8.0

FY19

FY20

FY21

0.0

（¥bn）

FY21

66.0

(57.0)

Fees from Customers（Bank total）（*3）

FY18(40.0)

40.0

FY21
Plan

4.3％

60.7％

Core OHR (bank total) (*2)
(Reference)(47.0)

84.2 50.0

Progress of Business Objectives

ROE (Consolidated)

Consolidated net income andCredit related costs

Core net business income

Business Objectives

 Assets under custody： -¥0.4bn
Refraining from visiting customers
considering impact of COVID-19
and weak motivation of investment■ Fees from Customers (Plan)(*2) excluding gain/losses on cancellation of investment trusts and system integration cost

FY18

● Consolidated net income（Medium-Term Plan）■ Credit Related costs（ Medium-Term Plan)● Consolidated net income（Results）■ Credit Related costs（Results)

Cost（Bank total）（*4） （¥bn）

Change Factors (Compared to Plan)
Compared to Plan -5.1bn  Personnel： -¥0.8bn
Decrease of staff（Retirement）
112.2（Efficiency improved due to progress ofstructural reform in branches, head office
and affiliated companies .）

110.1

105.0

 Non-personnel： -¥3.1bn
Decrease of branch rent anddepreciation due to optimization of
branch network
FY18■ Cost（Results）

FY21

 Tax ： -¥1.3bn■ Cost（Plans）(*3) Net fees and commissions + Net trading income +Net other business incomegains/losses on bond transactions(*4) excluding system integration cost24

2. Long-Term Vision 2030
Third Medium-Term Group Business Plan
（Plan Period： April 1, 2022 ～ March 31, 2025）

2525

Formulation of Long-Term Vision In order to achieve sustainable growth together with local communities amidst a drastically changing businessenvironment, we have formulated a long-term vision targeting the year 2030 as a major direction for the Group to
aim for.
 “Long-Term Vision 2030” is based on our desire to “continue to create new value by working together with local
stakeholders to solve their various issues” and to “contribute to the realization of sustainable local communities
through value creation, and remain an essential presence in local communities.”

Group
Philosophy

Together with local communities, we will continue to build amore prosperous future by providing high-quality
comprehensive financial services.

Formulated considering external
environment factors recognized while
formulating the long-term vision

Sustainability Policy【Materiality】

Long-Term
Vision 2030
Vision and target level in 2030

【Vision】

A Value Creation Group Working
Together with Local Communities【Target Level】

based on external environment

and future prospect

Consolidated Fee Income Ratio(*1)： 50％ or more
Consolidated Ordinary Profit

Third Medium-Term
Group Business PlanThree-year plan (Phase 1) for realizing
our vision and target level in 2030

： ¥100 bn or more

【Plan Period】
April 1, 2022 ～ March 31, 2025
【Position】

 Revitalization of regional economy
and society Response to climate change andenvironmental conservation
 Promoting digitalization
 Initiatives for an aging society
 Promoting diversity【Numerical Target】
 Sustainable Finance ¥ 3,000bn(cumulative FY2021～FY2030)〔o/w, environmental field ¥2,000bn〕
 CO2 emission reduction target
Net zero in FY2030

Period for Taking on Challenges for Sustainable Growth（*1） Consolidated Fee Income Ratio ＝ Consolidated fee income*2 ÷ Income from customers*3（*2） Consolidated fee income＝ Fee from customers of Banks ＋ Gross profit from customers of other group companies（*3） Income from customers＝ Difference of interests between loans and deposits＋ Consolidated fee income ※excluding securities' income

26Approach to Realization of Long-Term Vision
 To realize our long-term vision, we will strengthen our core business areas such as traditional banking andcomprehensive financial services and take effort to expand our business areas by leveraging our strengths.
 We will create new value by taking on challenges to solve regional issues beyond the framework of conventional
financial services and returning the expertise obtained through these initiatives to our core business.
Strengthen core business / Develop new business areas by leveraging our strengths【New Business Areas】
Take on the challenge to solve regional issues, going beyond the conventional framework
Cultivating
newcustomers
Deepening
relationships
with existingcustomers

 We will contribute to realize sustainable local communities by taking on challenges to solve regional issues going beyond theconventional framework.
 We will return the expertise obtained through our initiatives in new businesses to core business, which will lead to the growth of
our Group and local communities.

【Comprehensive Financial Services Area】
Strengthen our consulting and group functions and contribute to solve more customers’ issues
 We will expand the range of services to solve financial issues by strengthening consulting and group companies’
functions.
 We will contribute to solve diverse financial issues of more customers by collaborating with our group companies
and external institutions.

【Traditional Banking Services Area】
Change the way of providing services and increase
their value
 We will realize thorough efficiency and services that
continue to be selected by customers, throughdigitalization and business innovation.
 We will increase added value by providing integrated
financial services together with new business areas, andmaintain and expand our customer base.
Deposit

Loan

Settlement/ Money
Transfer

Securities
Management

ＤＸ

Consulting

Leasing

Securities

Asset
Building

GlobalExpansion

Business
Succession/ M&A

Trust /

Inheritanceetc.
Expandingbusiness

Return the expertise cultivated in new business areas to core business

areas

27

Position of the Third Medium-Term Group Business Plan The Third Medium-Term Group Business Plan is positioned to be a “Period for Taking on Challenges for
Sustainable Growth.” While strengthening our management structure by innovating traditional banking services and deepening
comprehensive financial services, we will take effort to sow and nurture in “New Business Areas” and aim tocontribute to local communities beyond the framework of conventional financial services.
将来（～2030年）

Third Medium-Term Group Business Plan （FY2022～FY2024）“Period for Taking on Challenges for Sustainable Growth”

Future （～ 2030）(４th medium-term group plan)
Period for accelerating
evolution

１．Pursue a business model to support local communities
Basic
Strategies

２．Build a sustainable management base
３．Develop human resources and promote active participation
Consolidated net income ￥52.0 bn or more
(Attributable to owners of the parent)

Business
Objectives

Core OHR (bank total)*1

Less than 58%

Consolidated ROE

5.5% or more(based on shareholders’ equity)(New Business Areas)(Comprehensive Financial
Services Area)

Long-Term Vision
2030

A Value Creation Group
Working Together with
Local Communities
Developing them into
core businesses

Expanding new
businesses

Sowing and nurturing
new businesses
Expansion of Financial
Products/Services(５th medium-term group plan)
Period for realizing long-term
visionIncrease customer usage

Expansion ofbusiness area and profit
Consolidated
Fee Income Ratio

50 ％ or more

(Traditional Banking
Services Area)

Thorough Efficiency

Increasing added value by providing
integrated services with solving issues

Consolidated
Ordinary Profit¥100.0 bn or more

＊1 Core OHR = Expenses ÷Core gross business profit (Gross business profit ＊2 -gain/losses on bond transactions)＊2 Excluding gains/losses on cancellation of investment trusts and remuneration from “Special Deposit Facility to enhance the resilience of the regional financial system” and “Special Funds-applying Operations to facilitate financing in
response to COVID-19 “ by Bank of Japan28

Basic Strategies of the Third Medium-Term Group Business Plan In the Third Medium-Term Business Plan, we will pursue a business model to support local communities aimed atcontributing to them through new value creation.
 Toward new value creation, we will work to build a sustainable management base by promoting Digital
Transformation(DX), etc., and to develop human resources and promote their active participation.
Basic Strategy １

Basic Strategy ２

Basic Strategy ３

Pursue a business model to support
local communities

Build a sustainable management baseDevelop human resources andpromote active participation【Specific Strategy １-3 】

New Business
Areas

Challenges to expand business areas● Provide value beyond the conventionalframework utilizing the strengths of ourGroup and investments【Specific Strategy １-2 】

Comprehensive
Financial
Services Area

Deepening comprehensive financial
services● Strengthen consulting and groupfunctions and contribute to solve morecustomers’ issues【Specific Strategy １-1 】

Innovating traditional banking services

Traditional
BankingServices Area

● Enhance customers’ convenience utilizing
digital technology and non-face-to-faceservices● Increase the value of services bystrengthening consulting function andproviding integrated services for solving
issues【Specific Strategy １-4 】

Diversification of securities
management / investments andfinancing● Strengthen profitability with appropriate
risk-taking【Specific Strategy 2-1 】 【Specific Strategy 2-2 】

Promoting DX

Enhancing groupmanagement● Provide new services
by utilizing digitaltechnology and data,
increase the added valueof conventional services● Organizational
development related to
DX and sustainability● Business management
response to expansion ofbusiness areas● Accumulate, analyze
and utilize data obtained
through digital channel
and face-to-face channel

Shifting humanresources to focus area
200 people(3 year cumulative)
New digitalization
investments￥7.0 bn(3 year cumulative)● Generating
management resources
by promoting DX etc.
● Accelerate business
Reducing and reviewing
innovation
business operations● Expand non-face-to-face
About 580 people
and remote procedures(3 year cumulative)
Cost reduction￥3.0 bn (compared

Developing and securing humanresources who can create value● Trainee dispatch
About 120 people(3 year cumulative)● Developing employees’ digital skills

DX personnel
400 people (end of Mar.2025)
Basis of DX personnel

3,000 people (end of Mar.2025)＊ Expected at the end of Mar. 2022
: 1,000 people

Implementing diversity /Initiatives for job satisfaction● Expanding working opportunities forfemale employees
Female employees ratio of
positions equivalent toassistant manager or higher
35％ or more (end of Mar.2025)＊ Expected at the end of Mar. 2022
: 31％

to FY21, the final yearof 2nd medium-term plan)29【Basic Strategy １】Pursue a business model to support local communities ①

Strategic
Goal We will contribute to the realization of sustainable local communities by enhancing the quality of services tosolve issues of customers and local communities and by expanding our business areas. Additionally, byenhancing customers‘ convenience utilizing digital technology and providing advanced face-to-face services
and a peace of mind, we will aim to become an essential presence in local communities.

Specific Strategy １-1

Corporate
Customers

Innovating traditional banking services••【 New Business Areas 】（Livelihood support）（Business support）
Integration of digital and face-to-face channels（Expanding
Increasing the value of services by providing
sales channels)【 Comprehensive Financial
integrated services for solving
Business
Businessrelatedtosupporting
Services Area 】
issuesmatching
Leasingfor sustainable growth ofCredit card
corporate customers
Global business（Aging society）（Healthcare）
Business related to
the realization of safe,
secure and prosperous living

Specific Strategy １-2

Deepening comprehensive financial
services••

Strengthen consulting and groupcompanies’ functions
Provide services for more customers（Labor shortage）（Succession of skills
and training）

Specific Strategy １-3
Challenges to expand business areas

Consulting
Personnel
introduction

M&A /Business succession（DX）【 Traditional Banking
Services Area 】
Deposits

Money transfers

Loans

Securities
management

DX / IT support

Individual
Customers

Securities
Trust /
Inheritance（Vacant homes）
Think-tank（Abandoned farmlands）

Investment
Take initiatives to new areas beyond the（Enhancing productivity）（Job creation）
Structured financesubsidiaries
framework of financial services（Decarbonization / SDGs）
Regional trading• Utilize our Group’s strengths and（Startup support）
companies
investments / collaboration
Business related to（Population decline）
supporting decarbonization（Diffusion of renewable
and SDGs in the local
Business for contributing to（Aging of publicand green energies）
regionsregional revitalization andSpecific Strategy １-4
infrastructure）
urban development（Advertising / Data marketing） （Regional decline）
Diversification of securities management /•investments and financing••

Expand investment fields and regions
Respond to diverse funding needs in the local
regions

Local
Regions※ Regional issues and needs areshown in parentheses of the figure. 30

【Basic Strategy １】Pursue a business model to support local communities ➁Specific Strategy １-1Innovating traditional banking services

With the improvement of convenience by providing expanded services through the digital channel and enhancing expertise of face-toface services, we will provide financial and non-financial services to meet various customers’ needs, and also better experience value
through both channels.
In response to the advancement of digitalization/ technology and the changes in value/ lifestyle of our customers, we will make a new
point of contact with them by providing optimized channels.
Digital channel

Face-to-face channel

Operations utilizing digital technology( Providing convenience and simplicity ) Complete transactions anytime, anywhere in a safe, secureand speedy way
 Expand contact points with customers and understand theirneeds

Integration

Improve linkage between digital and face-to-face channels

Data
Centralization

Operations of which only humans are capable（ Providing peace of mind and added value ） Provide information for solving wide range of issues including
non-financial fields and highly specialized consultation
 Enhance the quality of consultation by also utilizing digitaltechnology
Utilize transaction data obtained through enhanced digital channel

Enhancing data storage and providing new value
 Deliver advice to customers timely
 Provide information aiming at improving quality of life for customers
Enhance

Smartphone / WEB

Making a new contact point with customers by using digitaltechnologies

 Start to provide a portal for corporate customers• We will provide a portal with various functions
such as loans and clearing services, andsupport business activities of corporate customers.
 Expand non-face-to-face services for individual customers• Continuous improvement of functions of Banking App• Speedy funding support by providing loans available
online(WEB)

Optimize

Branches / ATMs

 Maintain and expand points of contact with customersbyflexible operations of branch stores in response to regional
characteristics / needs(service content, business days/ hours, utilizing idle properties, etc.)
 Optimize the network of ATMs taking into account the advancement ofcashless society
Enhance

Cashless / Clearing Services

 Provide businesses with diverse clearing functions
 Expand service lineup and improve convenienceby using digital application

31

【Basic Strategy １】Pursue a business model to support local communities ③
Specific Strategy １-2

Deepening comprehensive financial services
Traditional Banking Services Area
Increase value of services by providing
integrated services

Shift face-to-face services to
consulting services＜ For Corporate Customers ＞

Comprehensive Financial Services Area

Deepening consulting function for business companies
Founding period

Growing period

Stable period

Maturation period

Escorted support for sustainable growth of regional companies
Startup
supportFunding

Expandsales
channels

SecurehumanresourcesDX /Enhanceproductivity

Support for
globalbusiness

Support for
improving andrestructuringbusiness

M&A /Business
succession

Group companies’ functions ( Leasing, Investment companies, Securities, Credit card, Think -tank, IT) + External partners＜ For Individual Customers ＞
Deepening life plan consulting Provide services tailored to customers’ life events• Support for asset building and asset management to meet their life stage• Livelihood support including non-financial services

Strengthening relations with wealthy customers and business owners
 Build relations with wealthy customers / business owners and support their asset
management, inheritance and asset succession• Initiatives for connecting to next generation, such as asset management advice
and inheritance related services• Provide non-financial services related to livelihood support utilizing external
partnerships＜Customers’ needs＞

 Expand services for the digital age• Expand the functions of Banking App（distribution of advice / Investment
trust trading, etc.）• Enhance robot-advisor functions• Utilize consultation available online (Web)Asset
Investment

Asset
Utillization

House
Property

SafetyNonFinancial Informafinancial
Services
tion
Services
Asset
Asset
Life,

Management

Asset
Succession

Healthetc.

External specialists andpartners, etc.

32

【Basic Strategy １】Pursue a business model to support local communities ➃Comprehensive Financial Services Area

＜ Regional Issues ＞

Initiatives for regional revitalization and SDGs
Connect businesses
 Maintain and enhance supply chain

 Strengthen relations with regional corecompanies and establish ecosystem Consulting and supporting for the alliance ofmember companies in the ecosystem
Supplier B of thecore company

Supplier A of thecore company

Corecompany
Supplier C of thecore company

Supplier D of thecore company

Connect regions

Connect to next generation

 Support initiatives for decarbonization / SDGs
in local regions and for companies Solving regional issues by collaborating withlocal governments, etc.

 Enhance business succession/ M&A
and strengthen our support system Increase our response capabilities for Support initiatives for decarbonization / SDGs inlocal regions and for corporate customers
business succession/ M&A• Enhance initiatives based on characteristics
Promote SDGS initiatives in local regionsof industry and region• Support for companies utilizing tax system• Hold SDGs related seminars, Simple
applied to business succession
evaluation• Support for business consolidation andrestructuring
Practical support for SDGs in local regions• Consulting for SDGs (“SDGs Declaration Support
Service“, etc. )• Sustainable finance• Support to establish renewable energy
facilities

Aging of businessownersLack ofsuccessors

Business consolidation
Restructuring

Our Group

Enhance our response to an aging society
 Enhance to provide various services related to gerontology• Strengthen connections with elderly families (households)• Strengthen relations with external partners, administrative organizations
and experts
 One-stop services responding to problems of the elderly and their families• Expand services/products solving problems of the elderly and theirfamilies• Support to improve living environment such as reverse mortgages,
relocating and renovation, etc.
• Provide non-financial services by working with other industries

Introduce case studies of initiatives in local regions• Media function such as dissemination of initiatives for
SDGs by regional companies, etc.
Worries about elderlyfamily members
Worries as inheritors

Worries about living
Worries about inheritanceStrengthen
connection withhouseholds
Consultation

Consultation

Solution

Solution

Strengthen
collaboration

Elderly
Experts

Administrative
organizations

FamilyExternal
partners

33

【Basic Strategy １】Pursue a business model to support local communities ⑤
Challenges to expand business areas

Specific Strategy １-3“Approach to New Businesses”

Business related tosupporting sustainablegrowth of corporate
customers

High necessity to address as regional issues
Affinity with our Group’s strengths“Themes for New Business Area Expansion”

Providing services forsolving issues including
non-financial fields

Business related toregional revitalization andurban development

Business related to
the realization of safe,
secure and prosperous
livingRealization ofsustainable local
communities

Business related tosupporting decarbonizationand SDGs in local regions

Utilizing strategic investments and collaboration, etc.
Specific Strategy １-4

Diversification of securities management /investments and financing

We will create new value by taking on challenges
to solve various regional issues

Strengthen securities management
Expansion of investment
fields/regions
 Expand credit investment
 Expand option trading
Reinforce global investment

Reinforce structured finance

Advanced risk management

Strengthen human resource
development and system

 Strengthen to identify advancewarning (using AI )
Improve simulation analysis

 Utilize external knowledge (in andoutside of Japan)
Develop a career path system Reinforce arrangement services
 Further strengthen business related to renewable energy
 Enhance equity finance

Expected Securities Portfolio (Two Banks total)

FY2021
Foreign currencies
bonds/ Investment
trusts, etc.
about 35%

FY2024

Product
Yen- denominatedbonds
about 65％

Foreign
about 30％
RegionDomestic
about 70％

Foreign currencies
bonds/ Investment
trusts, etc.
about 45%

Product

Foreign
about 35％

RegionExpand financing fields
Increase know-how

Respond to diversified funding
needs
Contribute to dissemination ofrenewable energy

Yen- denominatedbonds
about 55％

Domestic
about 65％

34

【Reference】 Pursue a business model to support local communities ⑤
A new company will be established to develop renewable energy power acquisition / generation businesses and theirderived businesses.
Through these businesses, we will aim to contribute to achieve carbon neutrality in the local region.
Renewable Energy Power Acquisition and Generation Businesses
Solar power
generation

Joyo Green Energy Co., Ltd.
Address

Biomass power
generation Acquisition Main businesses
Wind power
generation

Shareholders andshareholding ratio
Establishment

Small hydro power
generation, etc.

2-5-5 Minami-machi, Mito, Ibaraki Prefecture(c/o Joyo capital partners）

Electric powercompanies

Sell
power

Renewable energy power generation and derived
businesses

Corporate PPA *2
Supply Regional customers requiring
renewable energy powergreenelectricity Our group will use renewable

The Joyo Capital Partners Co., Ltd (*1) 100％
July 2022 (scheduled)*1 Investment company, wholly-owned- subsidiary of Joyo Bank

energy power*2)Power Purchase Agreement(PPA)A system for installing solar panels on one’s own grounds and roofs (onsite) or adjacent(offsite)and supplying renewable energy power through retail power generation companies

Performance evaluationof power generation
Improving efficiency
Maintenance andreuse of power
supply facilities

Derived Businesses

Initiatives for carbon offset
using fallow land

Environmental
value creation
using blue-carbon *3
ecosystem

Others*3)Carbon absorbed and fixed by living organisms in marine ecosystems

・J-Credit ・Green Power Certification

・Issue of Non-Fossil Certificate35【Basic Strategy 2】Build a sustainable management base ①
Strategic
Goal Through the utilization of digital technology and other means, we will work to reform our business model andto innovate operations to create new value and strengthen our management structure.

Specific Strategy 2-1

Promoting DX
Accelerate business innovation

Expand digital transactions
 Enhance non-face-to-face services / self transactions
 Pursue CX and UI / UX

 Abolition, drastic revision and simplification ofadministrative procedures
 Digitalization of paperwork

Face-to-face channel

Digital channel

Expanding APP functions andservices with WEB completion
scheme, linking to external
services, etc.

Enhancing digital operations,
Enhancing consulting function
through dialogue withcustomerso/w New digitalization
Investments￥7.0 bn

Back office operations【Expanding the scope of useof digital technology】

Integration

IT Investments
3 year cumulative ¥15.0bn

RPA, AI-OCR, AI,
Image data transmission,
Low-code development tools

Shifting humanresources to highvalue business areas
Value provided tocustomers① Easy, convenient and safe
services available anytime,
anywhere② Sophisticated face-to-faceconsulting services

Data storage
Advancement of data analysis
and data utilization

Internal data

Financialdata

External
data

Non-financial
data

System development  DX promotion system ・・・ Organizational development related to DX
for promoting DX  Securing and developing DX personnel ・・・ DX personnel ： 400 people

Basis personnel ： 3,000 people (IT passport acquirers)

Strengthening
infrastructure of IT/DX Establish a highly simple, flexible, scalable, and serviceable systeminfrastructure
・ Open source / Cloud computing, Using industry standard technology
・ Improve security③ Proposing products/services
to meet customers’ needs

For employees① Shifting to high value businessareas and promoting active
participation② Improving productivity throughdigital support③ Efficient sales activities usedin conjunction with face-to-faceand non-face-to-face channels

36【Reference】 Build a sustainable management base ①
Efficiency advanced by elimination of business operations through the enhancement of CX from the provision of newservices designed to support digitalization and the digitalization of business process.
Further, we will increase the scope of data utilization to create new value and strengthen our management structure.

Intended Purpose ①

PDCA by marketing mix

Improving customer services

Branch visit reservation service

Furthersophistication

Digitalization of bank transfers
by local governments

Analysis（Using AI, etc.）

Unsecured loans (WEB completion scheme)
Digital contracts
Remote reception

Data collection / storage（transaction data, behavior logs , etc.）

Self-counter terminal
AI data analysis
with Navigation
Marketing
Digital receipts app
System for keeping customers’ passbooks, etc.

Speedy decision-making

Intended Purpose ②

Intended Purpose ③

Business efficiency

Utilizing data

＋531

thousand people581■ Volume of in-store operations■ Amount of new unsecured loans (￥bn)

1,179

1H19 2H19 1H20 2H20 1H21 2H21

■ Number of “IT Passport” acquirers (people)＋19.7%‐33.5%

50
Mar.’21 Jun.’21 Sep.’21 Dec.’21 Mar.’22

Committee under the direct control of
top management
Establishment of department
specialized in DX
Enhancing investment of human resourcesin IT field( thousand hours)

1,775Transactions

On line management support

Banking app
Passbook app● Number of users of banking app(accumulated, thousand people)

Data
Utilization
PDCA

600
400
200
0

1,268

66.4

55.5

＋1,039people

229
'17

'18

'19

'20

'21

Mar.'21

Jun.'21

Sep.'21

Dec.'21Mar.'2237

【Reference】 Build a sustainable management base ①＜ Example of utilization：
Identification of potential customers for investment trusts and advertisement distribution＞
Utilization
 By visualizing the contribution of explanatory
variables, we have gained knowledge（finding
significant variables) that we have not previously
been able to obtain.
 Concerning the promotion of accumulated
investment trusts, we have made AB testing basedof the prospect list and achieved certain results by
AI analysis.

Individual customers

Development ofdata infrastructure Historicaltransactions from
CRM, Banking app,
Internet banking andso on.
 Market conditions /Fund information
 Others

Evaluation / Improvement
 After consistent results in AI analysis, we continue
to verify the effectiveness of other promoting
products by AB testing, too.

Data storage④Utilization/
Improvement①Data collection/
storage
Data collection / storage

Utilization / Improvement③結果検証

Distribution / Verification of effect

AI analysis / Identification of potential customers

①データ
収集・蓄積

Guidance for accumulated NISA
by push notification③Verificationof effect②AI analysis

100,863
76,744

69,271

Verifying effectiveness（Comparison of AB testing results） 26.3

33.0

■We have developed a model that could determine
the potential customers of accumulated investment
trusts based on customers’ data.
Target・Investment trust contract holders : 10 ofthousands, Non-holders: 10 of thousands→ Status：Individual, Age：Over 20 years old

Explanatory
variables

・ Input data by statistical processing(deposit and withdrawal data / Status / Balance of
deposits / ・・・・・・・・ )Objective
variable

・With or without of contract of accumulated
investment trusts

19.6

Create a prospect list
'17

'18

'19

'20

Judge potential customers'21

Contract number of accumulated investment trusts (people)
Balance of accumulated investment trusts （¥ bn）

38

【Reference】 Build a sustainable management base ①＜ Example of utilization：
Identification of potential funding needs and early securing of contact points with customers＞
Proactively
approachingcustomers

Getting opportunities of
Improving conversationaltransactions
with customers
skills based on the results
that
only
have
depositaccounts
of data analysis

Customers
Sales staff④Utilization /Expected
effects

Corporate customers①Data collection/
storageUtilization / Expected effects
Results / Verification

Results

Storage of information aboutbalance of deposit anddeposit / withdrawal data

Data collection / storage③結果検証

AI analysis/ Identification of potential customers

①データ
収集・蓄積

③Results /Verification②AI analysis

Deposit and withdrawaldata Through POC（desktop verification）using
historical data, we have confirmed a certain levelof accuracy (AUC) regarding the prediction offinancial needs.
 Precision rate was above the succession criteria.

Other various transaction
data

Input data by statistical processing

Verification
 We started to verify the effectiveness through ourreal sales activities for introduction into actual
operation.
(Verification period : From April 2022 to August 2022)

Create a list of projected scores

Predict financial needs

39【Basic Strategy 2】Build a sustainable management base ②
Specific Strategy 2-2

Enhancing group management

Optimized allocation of management resources【Human resources (Personnel relocation)】• By enhancing the efficiency of group management, we plan to establish a
operation structure of 6,500 people in FY24 (total staff of 8,900 people
including part-time workers, etc.).
• Through the digitalization and efficiency of administrative procedures,etc., we will reduce and review our business operations equivalent to580 people and relocate 200 people to consulting, DX and new fields,
etc.

【Things (IT Investment)】• For pursuing a business model supporting local communities andaccelerating our business innovation, we will invest ￥15.0 bn in IT,of which, ￥7.0 bn in new digitalization, in the next three years.
Total amount of IT investments￥15.0 bn (3 year cumulative)o/w New digitalization investments￥ 7.0 bn (same as above)【Money (Cost reduction)】• Through DX promotion and business innovation, we will enhancecost reduction(*) by ¥3.0 bn mainly in traditional banking area andinvest to digitalization and human resources development.
(*) “Total expenses in FY2024” - “Total expenses in FY2021”

Advanced group governance / risk management / profit control
Strengthen our group organizations

Reinforcing
our Group’sbusinesses

Changein financial
business
environment /regulations

 Reorganization for strengthening DX promotion
 Establish a new organization for enhancing our initiatives
for sustainability
 Review our system for business operations’ planning
function in the Group
Brush up on our management system considering
new business areas and its expansion
 Develop risk management and profit control systems
Enhance advanced market risk management
 Risk management responding to the expansion of
investment fields / methods
 Appropriate response to the market risk related regulations

Response to climate change
 Initiatives for CO2 emission reduction
 Advanced scenario analysis and enhancement of disclosure Development of a framework of climate change risk management
Advanced measures for AML/CFT More sophisticated due diligence measures More sophisticated risk management system
Response to Basel Ⅲ
 Response to final requirements of Basel Ⅲ (credit risk,
operational risk)
 Appropriate RWA management40【Basic Strategy 3】Develop human resources and promote active participation

Strategic
Goal Through the development and securement of human resources capable of creating value
and the enhancement of job satisfaction, we will form a diverse and self-reliant group that can provide local
communities and customers with new value and a peace of mind, thereby increasing the engagement ofeach employee.
Developand secure
human resources
capable ofcreating value

Develop and secure human resources capable of creating value
Develop and secure human resources who can reflect both the trust andthe expectations of our customers

 Develop and secure human resources with problem solving skills

Increase
the engagementof employees
Implementationof diversity

Initiatives forenhancingjob satisfaction

Investment in
human resources
Implementation of diversity

 Develop and secure human resources responsible for deepening
comprehensive financial services and expanding business areas
 Share the skill qualification system and the self-education menu in
two banks

 Enhance training programs / reskilling opportunities
 Enhance the training programs prepared for shifting human resources
to front-office operations and the progress of digitalization
 Develop joint training system in two banks, co-producing training
material using video

Initiatives for enhancing job satisfaction

Expanding active working opportunities for diverse human resources

Cultivate organizational culture supporting sustainable growth Implementation of diversity and environmental improvement

 Initiatives for enhancing job satisfaction

 Practice of initiatives based on the diversity policy
 Increase active participation of female employees and opportunities
for promotion to higher level positions
 Initiatives for active participation of senior human resources Female employees ratio of positions equivalent to assistantmanager or higher<Target level> End of Mar. 2025 ： 35％ or more Support for self-motivated career building / Develop an environment that
promotes challenges
 Improve work-life balance41

Business Objectives / Main Performance Targets
Business Objectives
 We set the goals of consolidated net income, core
OHR (two banks total) and consolidated ROE

Business objective indicators(based on shareholder’s equity) as our businessobjectives. We will achieve the levels shown on theConsolidated net income

right by carrying out basic strategies.

（Attributable to owners of the parent）

Main Performance Targets(Reference)

FY2021 Results

FY2024¥42.9bn ¥52.0bn or moreCore OHR (Two Banks total)*1

58.1％

Under 58％

Consolidated ROE （Based on shareholder’s equity）

5.1％

5.5％ or more

 Profit of banking business and consolidated income
will increase due to pursuing business models to

Main performance targets

support local communities and efficiency throughpromotion of DX and initiatives for innovation.

(Reference)
FY2021 Results

FY2024

Core net business income（Two Banks total）*2¥77.9bnaround ¥80.0bn

Consolidated ordinary profit¥64.9bnaround ¥75.0bn

Average balance of Loans（Two Banks total）*3
Average balance of Deposits（Two Banks total）*4¥11.1 tn
¥16.5 tnaround ¥11.6 tn
around ¥17.5 tn

Preconditions for Objectives and Targets
 We predict that both global and domestic economies will normalize and gradually recover from the COVID-19 pandemic.
In addition, we will continue to closely monitor recession risks due to heightened uncertainties regarding the geopolitical risk of Russia andUkraine and rising material prices.

(*1) Expenses ÷ Core gross business profit（Gross business profit＊2－gain/ losses on bond transactions）(*2) Excluding gains/losses on cancellation of investment trusts and remuneration from “Special Deposit
Facility to enhance the resilience of the regional financial system” and “Special Funds-applying Operations
to facilitate financing in response to COVID-19 “ by Bank of Japan(*3) Excluding loans for “Borrowing from special account of MoF”(*4) Including Negotiate certificates of deposit42

3. Value Creation Process

Initiatives for Sustainability

4343

Value Creation Process
Based on the corporate philosophy of the Group, Mebuki Financial Group will provide high-quality, comprehensive financial
services by taking advantage of its wide-area network, solid customer base and other strengths, while contributing to thesustainable growth of local communities through improving the Group’s corporate value and creating value for stakeholders.
External● Aging and Declining population● Industrial and work structure changes
environment ● Shift to decarbonized and recycling-oriented society ・・・

Input

OutcomeGroup Philosophy

Together with local communities, we will continue
to build a more prosperous future by providing
high-quality, comprehensive financial services.

Our Vision

Building the region’s future as a comprehensive
financial services groupNew
business areasTake on the challenge tosolve regional issues,
going beyond theconventional framework• Realize prosperous living• Support for sustainable corporate growth• Support for decarbonization / SDGs inlocal regions• Contribute to regional revitalization /urban development

Intellectual
capitalComprehensiv Strengthen our consulting
and group functions ande financial
services area contribute to solve more

• Consulting• Business succession / M&A• Trust / Inheritance / Asset Building• Leasing / Securities / Global
expansion

SocialcapitalChange the way of
Traditional
providing services andbanking
services area increase their value• Deposits• Loans• Settlement / Money Transfers

customers’ issues

Managementbase that
supports ourbusiness

Explanation ofeach capital● Changes in lifestyle and value

Business Activities

Financial
capitalHumancapital● Progress of digitalization and technology

Financial capital• Sufficient capital• Sound assets• Stable funding

Corporate GovernanceRisk Management

ComplianceInternal Audit

Human capitalIntellectual capital

Prosperous
imaginationand problemsolving skills

Services that
continue tobe trusted

Local Communities and Customers• Convenient and secure financial
services• Revitalization of regional economy• Solving issues through consulting
services• Safe, secure and prosperous life
• Creating a recycling-oriented society
and reducing environmental impact
Shareholders• Corporate value improvement• Stable and sustained shareholder
return• Transparent information disclosure
Employees• Promotion of diversity• Pleasant working environment
where employees can grow• Implementing work-life balanceContributing to achievement of SDGs

Social capital• Wide-area networks based in Ibaraki and Tochigi• Diverse human resources• Brand strength and history
Prefectures• Enhancing training programs and specialized • Comprehensive capabilities with know-how• Solid customer basehuman resourcesin the Group• Network with domestic and international partners• Human resources rooted in local communities • Advanced risk management

44Sustainability Policy

Mebuki Financial Group has formulated the Group Sustainability Policy in order to reinforce further initiatives for theachievement of our long-term vision, in conjunction with the start of the 3rd Medium-Term Group Business Plan.
In addition, we have formulated independent policies to clarify policies regarding “Environment”, “Human Rights” and“Diversity”.

Long-Term Vision 2030

“A Value Creation Group Working Together with Local Communities”
Mebuki Financial Group Sustainability Policy
Based on the group philosophy “Together with local communities, we will continue to build a more
prosperous future by providing high-quality comprehensive financial services” , Mebuki Financial Group will
support solving issues in our regions, while contributing to the achievement of sustainable growth of local
communities as well as the improvement of our corporate value.

Group Environmental PolicyGroup Human Rights PolicyGroup Diversity Policy

Mebuki Financial Group
Supervision

Board of Directors【Established in April, 2022】

Sustainability Committee

Chairman：President and Director
Members：All Executive Directors, Executive Officers and others
Purpose：To contribute to the achievement of SDGs,
the committee makes decisions on importantbusiness execution regarding both sustainable growthof the Group and the resolution of environmental/social issues in local regions and analyze, evaluate,
improve matters related to sustainability promotion.

Each Group company

Sustainability Management
Group

Promotinginitiatives forsustainability
throughout theGroup【Established in April, 2022】

Sustainability Promotion Office（Joyo Bank / Ashikaga Bank）

Department responsible forsustainability

45

Sustainability Policy
Mebuki Financial Group has established key issues (materiality) to be focused on in order tocontribute to the realization of sustainable local communities.
Going forward, based on these five (5) key issues, we will promote initiatives to solve regional issues.
Key issues(Materiality)

Main initiatives in the 3rd mid-term business plan
【Specific Strategy１-2 】

Deepening comprehensive financial services

Revitalization ofregional economy
and local
communities•••【Specific Strategy１-3 】

Challenges to expand business areas••

Climate change
and environment
conservation

Deepening consulting function for companies
Initiatives for regional revitalization / SDGs
Deepening life plan consulting

Developing new business areas by leveraging group’s strength
Utilizing strategic investments and collaboration, etc.

【Specific Strategy１-2 】

Deepening comprehensive financial services•

Initiatives for regional revitalization / SDGs

【Specific Strategy １-1 】

Promotion ofdigitalization

Response toaging societyLong-term KPI for
sustainability

Sustainable financegoal
FY2021～FY2030(cumulative total)“ 3 trillion yen ”(o/w Environmental fields
2 trillion yen)
CO2 emission reduction
goal

Innovating traditional banking services•

FY2030“CO2 emission Net-zero”

Promoting DX

Female employees ratio of
positions equivalent toassistant manager or higher

Enhancing contact points with customers and non-face-to-faceservices using digitalization• Optimizing channel network and enhancing consulting function【Specific Strategy 2-1 】【Specific Strategy１-2 】

Deepening comprehensive financial services•

Enhancing response to an aging society【Basic Strategy 3 】

Promotion ofdiversity

Goal of SDGs

End of Mar. 2025
“ 35％ ” or more

Develop human resources and promote active
participation•

Implementation of diversity

46

Initiatives for ESG・SDGｓ
We will work with all of our stakeholders, including customers, shareholders, employees and business partners,
to create a more prosperous regional society and aim to keep growing together with our local communities.
Main initiatives as a corporate citizen

E

Response to climate change Contribution to decarbonized society• Initiatives for TCFD recommendation (enhancing
internal control system including scenario analysis ofclimate change and related disclosures)• Initiatives to reduce greenhouse gas emission
 Forest conservation activities, subsidies and donations toenvironment conservation groups

S

Main initiatives contributing to SDGs through the Group’s businessesE Environmental consideration and support for the spread ofrenewable energy through investment to green loans / bondsand environment-friendly private placement bonds, etc.
 Support for promoting environmental businesses

S

Promotion of diversity

Corporate
employees

Individual
customers

Our Group

Companies

Build a sustainable system /Develop and secure human resources in local regions
 Promotion of digital transformation (DX) Innovation of business operations
 Support for financial education
 Joint support with local governments for recruiting
 Support for training young managers and successors

G

Promotion of sustainability transformation (SX) Collaborative creation with our customers• For acceleration and expansion of SDGs, we will provide various
products/services to raise customers’ sense of participation in SDGs
from the viewpoint of “ activities to support the achievement of
SDGs’ goals in partnership with customers”

 Increase active participation of female employees andopportunities for promotion to higher level positions
 Develop and secure specialized human resources, active
participation of senior human resources Investment in people Work-style reform / promote work-life balance Respect for human rights

S

Response to climate change

Advanced corporate management
 Strengthen and improve corporate governance Shut out relations with anti-social forces and preventmoney-laundering and financing of terrorism for apeaceful and just society

Administrativeand educational
institutions

S

External
partners

Contributions to regional sustainable growth Collaboration with local regions / regional companies andregional revitalization by making the most of the Group’s
wide-area network
 Solving regional issues by working with local governments
 Financial support by providing sustainability linked loans tosolve customers‘ social issues
 Expanding various services related to financial gerontology
 Expanding non-financial services responding to problems
for the elderly

47

Initiatives for Sutainability● Major initiatives through the Group’s business
Discovering and creating new business For the development of the regional
economy, we invite people in thecommunity to offer innovative andcreative business plans, for which
we provide support towardcommercialization and growth.
 In FY21, we awarded 27 businessplans.

 To support the efforts to solve
management issues, we provide
optimal solutions through consulting.
(Business succession, SDGs consulting,etc.)
Business Award ceremony

Initiatives to revitalize the regional economy
 By making the most of the Group’s
wide-area network, Joyo Bank andAshikaga Bank jointly hold various
business conferences related toagriculture, food andmanufacturing to help develop amarket and expand economic
exchange through businessmatching, etc. among clients.

Initiatives based on the knowledge on gerontology
 Toward the realization of thecommunities where the elderly cancontinuously live in comfort, we are
expanding our services utilizing theknowledge on gerontology.
(Asset management, asset
succession, etc.)

Identifying management issues and providing solutions
for regional companies

Supporting the growth and enhanced productivity ofregional companies
 We provide support for appropriate
personnel placement as well as forreview of personnel systems to solve
issues. In addition, we offer
management issue solutions utilizing
personnel working side jobs.

Contributing to communities through private placement
bonds with donation scheme A portion of the commission received
when issuing private placement bonds
for customers is used for donating
goods to schools or organizations
engaged in initiatives for SDGs of thecustomer’s choice.
Kindergartners playing with donated toys 48

Initiatives for Sutainability● Initiatives for climate change and environment conservation
Initiatives for promoting renewable energy businessInitiatives to reduce greenhouse gas emissions
 Setting a reduction goal of CO2
emissions, the entire Group
strives to reduce CO2 emissions
through measures such as
establishing environment-friendly
branches and integrating the mailcarrying system between offices
and branches.

 We proactively support ourclients’ efforts toward therealization of a carbon-freesociety by providing financial
support for renewable energy
businesses.

Fuel-efficient business cars

Subsidies and donations to environment conservation groups

Environment conservation activities

 To support environment
conservation activities, we
continue to offer subsidies anddonations to organizations andgroups working on environment
conservation.

 In addition to tree-planting activities andpromotion of environmental education,
we make efforts to conserve theenvironment through reduced paper use
by promoting our smartphone app andonline passbook.
(Tree planting, saving paper resources bypromoting online passbook, etc.)

Kindergartners releasing juvenile fish

● Initiatives for diversity
Promotion of diversity
 We have established “Diversity Promotion Office” as anorganization to supervise the initiatives for promoting diversity
to create a working environment where women and otherdiverse human resources can become more active, and to
improve organizational capabilities.
 We are conducting “ Mebuki Women’s Class” in order tofoster women leaders and proactively promoting capable andmotivated women employees to assistant manager positions
or higher.

Initiatives for LGBT communities“Mebuki Women’s Class”

 We offer housing loans and house renovationloans, accepting same-sex partners as spouses.
We include same-sex partners as loan recipients inthe cases of joint liability or combining income at
the time of borrowing, as we aim for a society
where people can live by their own values, with
their sexual orientation and gender identity being
respected.

49

Initiatives for Sustainability
As a partner to our customers, we will expand various products and services which promotecustomers' proactive participation in SDGs' initiatives. Also, as a bank, we aim to make aleading and active contribution.

Support for Corporate Customers' Initiatives
Practice / Transmission

Recognition / Promotion

 We promote our customers'
understanding and participation in
SDGs

SDGs Simple Evaluation (*1)
 Utilizing an original checklist, we
simply evaluate the progress of
SGDs by corporate customers intheir business operations.
(*1) Utilized together with loan or "SDGs
Declaration Support Service".

SDGs Evaluation/Consulting
Service We provide more detailed
evaluation, various services forsolution and consulting support.

SDGs Declaration Support
Service We support to develop
customer's "SDGs Declaration"and promote both inside andoutside of the company.

Support for Individual Customers' Initiatives

ESG Finance

Private Place Bonds with Donation Scheme

Sustainability
Linked Loan
Main products

SDGs Initiatives Supporting
SeminarBusiness
capitalSDGs Support LoanDX Support Loan

Green
Project

622

103

714

122

813

138

939

157

1,060

178

Green Loan
Green Bondend of
FY19

end of
1H20

end of
FY20

end of
1H21

end of
FY21

Amount of Donation (￥mil, cumulative)
Number of Issues (cumulative)

Support for Planning SDGs Declaration (Nov. 2021～)

Support contributing to SDGs through Providing
Financial Products289

 We started handling ESG funds donated to SDGs-related businesses
in Ibaraki and Tochigi Prefectures.
 We started handling carbon-free-related (decarbonization-related)
equity funds.

Number of
supports

Loan Products related to Environment Conservation
Joyo
Bank

Eco-reform Loan （Soden Style）

2

Ashikaga
Bank

Reform Loan （Related to solar power generation
system with favorable interest rates）'21/3Q'21/4Q

50

Response to Climate Change
In March 2021, we declared support for the TCFD Recommendations and strengthened our response
to climate change.
Revising the target for CO2 emissions reduction upwards, we will accelerate to realize a decarbonizedsociety and contribute to regional sustainable growth.

CO2 Emissions Reduction

Sustainable Finance We have set the target for CO2 emission reduction in FY2030 to“Net-zero”.
 We have achieved a 25.0% reduction of CO2 emissions in FY2021(*1), compared with FY2013.
BeforeRevisedreduce by
30% or morecomparedwith FY2013

Net-zeroDefinition of “Sustainable Finance”“Finance to support customers’ activities
aiming to realize a sustainable society
through solving environmental and social issues”,
as referenced in related external standards(the Green Loan Principles, the Green Bond Principles,
the Social Bond Principles, etc.)
Transactions subject to “Sustainable Finance”＊1 Total CO2 emissions of Scope 1 + Scope 2 of Joyo Bank + Ashikaga Bank,
calculated based on the reporting standards stipulated in the Energy Efficiency Act .

<CO2 emissions of the Group>

-6.5%

23.3

FY13

21.8

FY14

21.6

FY15

20.2

FY16

-16.6%

19.4

FY17

Projects that contribute to the adaptation and mitigationof climate change, including renewable energy projects
Capital investments that contribute to re-energy, energy
conservation and carbon neutral, etc.

Social fields

Projects that contribute to regional revitalization andregional creation
Projects that contribute to foster start-up companies andjob creation

CO2 emissions（Bank Total） ktCO2
Reduction toward to FY13

25.0% reduction
compared with
FY13

-7.0%
-13.3%

Environmental
fields-20.6% -22.8%

Cumulative total-25.0%(FY2021～FY2030)

3 trillion yen

o/w Environmental

fields

3 trillion yen
18.5

FY18

17.9

FY19

2 trillion yen
2 trillion yen

17.5

FY20

FY30

0.14

0.03

trillion yen

trillion yen

FY2021

FY2030

FY2021

FY203051

Response to Climate Change
We will continue to implement proactive support for customers' efforts seeking the achievement of a sustainable
environment and society, by providing renewable energy-related loans for reducing climate change risks andthrough our environment conservation activities. Further, we will appropriately act for reducing and avoiding
negative impacts based on the “Environmentally and Socially Friendly Investments and Loans Policy”.

Environmentally and Socially Friendly Investments

Major Initiatives for Environment Conservation<Initiatives for promoting renewable energy business > We proactively support ourcustomers seeking therealization of a carbon-freesociety by providing financial
support for renewable energy
business projects such as solar
power generation, biomass
power generation, and wind
power generation.

＜Balance of investments and loans
related to renewable energy＞

Investments¥12.3bn<Subsidies for environment
conservation groups, etc.>

Total investments and loans
balance (Bank total)¥208.1bn(as of end of March, 2021)

Loans¥195.7bn

Solar power¥175.7bn

Others¥20.0bn(biomass power, wind power, etc.)

 Utilizing the mechanism of charitable trust, we grant subsidies toorganizations and groups working on environment conservation.
<Subsidies through charitable trust (Cumulative total, as of end of March, 2022)>
NumberAmount of Subsidies
Number of cedar trees owned
1,571

169.44 million yen<Environment conservation
activities>

80<Support for the 21st Century
Financial Behavior Principles> We have conducted tree-planting  Supporting the 21st Century Financial
and other activities in order to
Behavior Principles, which was
pass our communities’ beautiful
adopted in December 2011 in orderand sound forests on to the next
for financial institutions in thegeneration. We are also making
banking, securities, and insurance
efforts to protect limited naturalindustries to work together on
resources by promoting the use
expanding environmentalof smartphone apps and online
finance initiatives,
passbooks in efforts to save
we make efforts toward
paper.
the formation of asustainable society.

 Concerning investments and loans to particular sectors that could cause
great impact on the environment and society, we will appropriately act
based on the “Environmentally and Socially Friendly Investments andLoans Policy”.
１. Coal-fired power plants
In principle, we will not engage in investments and loans for newly
established coal-fired power plants.
(However, exceptions may be considered where taking into accountbackground or characteristics of each project such as overall power
generation efficiency, impacts on environment and local communities, etc.,
based on international guidelines.)
２. Deforestation
Investment decisions for deforestation operations will be made after carefulconsideration of the status of acquisition of international certifications by FSC
or PEFC, environmental considerations and conflicts with local communities.
３. Palm oil plantation development
Investment decisions for palm oil plantation development will be made after
careful consideration of the status of acquisition of international certifications
by RSPO, environmental considerations, and conflicts with local communities.
4. Cluster munitions manufacturing
In view of the inhumane nature of cluster munitions, we prohibit investments
and loans for businesses that manufacture cluster munitions, regardless of theuse of the funds.
５. Human rights violations, forced labor, etc.
We prohibit investments and loans for businesses that violate the principles
of international human rights standards such as child labor and forced labor.

52

【Financial Data for FY21】5353

Breakdown of Banking subsidiaries【Data】子銀行内訳（１）P/L for FY21

（￥ｂｎ）

J+A
187.0
194.1
157.7
1.7
33.7
-4.5
-7.1
108.1
58.2
43.4
78.8
86.0

YoY
+6.8
+7.7
+4.6
-5.0
+2.3
-0.1
-0.8
-1.9
-1.6
-0.0
+8.8
+9.7

Joyo
106.9
111.8
90.7
1.7
19.2
-3.0
-4.8
60.5
32.7
24.1
46.4
51.2

YoY
+4.5
+5.4
+2.9
-3.1
+1.9
-0.3
-0.9
-1.1
-0.4
-0.5
+5.6
+6.5

Ashikaga
80.0
82.3
67.0
0.0
14.5
-1.5
-2.2
47.6
25.4
19.2
32.4
34.7

84.2

+14.8

49.5

+9.7

34.7

+5.0

o/w Gains/losses related to stocks, etc
Ordinary profit
Extraordinary income/losses
Net income

1.4
77.4
-16.9
18.1
3.5
60.4
-4.2
40.0

-0.7
+9.6
-5.0
-2.0
-6.5
+4.5
-6.4
-2.1

0.3
46.0
-8.1
9.5
3.5
37.9
-3.6
24.6

-1.4
+7.0
-5.1
-0.8
-5.5
+1.8
-2.3
+0.1

1.0
31.3
-8.7
8.6
-0.0
22.5
-0.5
15.4

+0.6
+2.5
+0.1
-1.2
-0.9
+2.6
-4.1
-2.2

Credit related costs (a)+(b)

19.6

-2.8

9.8

-2.2

9.7

-0.5

Gross business profit(Core Gross business profit)
Net interest income
o/w Gains/losses on Cancellation of Private Offering Investment Trusts

Net fees and commissions
Net other business income and Net trading income(o/w gains/losses on bond transactions)

Expenses
o/w Personnel expenses
o/w Non-personnel expenses
Net business income (before general allowance for loan losses)
Core net business income
Core net Business Income（exclu. Gains/losses on Cancellation of Investment Trusts）

Net transfer to general allowance for loan losses (a)Net business income
Net non-recurrent gains/losses

o/w Disposal of non-performing loans (b)

YoY
+2.3
+2.3
+1.7
-1.9
+0.3
+0.2
+0.0
-0.8
-1.2
+0.5
+3.1
+3.1

（２）Average Yield on Loans(excluding borrowing from special account of MoF)
FY18
FY19
FY20
FY21
YoY
Domestics
1.03%
0.99%
0.96%
0.93%
-0.02%
J+A
Overseas
2.92%
2.67%
1.29%
1.04%
-0.25%
Total
1.06%
1.02%
0.96%
0.94%
-0.02%
Domestics
1.00%
0.97%
0.93%
0.91%
-0.01%
Joyo
Overseas
2.95%
2.69%
1.30%
1.05%
-0.25%
Total
1.04%
1.01%
0.94%
0.92%
-0.02%
Domestics
1.07%
1.02%
0.99%
0.96%
-0.02%
Ashikaga Overseas
2.67%
2.48%
1.19%
0.98%
-0.21%
Total
1.08%
1.03%
0.99%
0.96%
-0.02%

54

Breakdown of Banking subsidiaries【Data】子銀行内訳（３）Loans Term-end Balance

（￥ｂｎ）

FYE18

FYE19

FYE20

FYE21

J+A

Individual
Corporate
PublicTotal

4,674.8
5,139.1
1,038.2
10,852.3

4,795.9
5,181.3
980.2
10,957.5

4,924.8
5,369.6
983.7
11,278.1

5,045.4 +120.5
5,347.4
-22.2
915.9
-67.7
11,308.8 +30.6

Joyo

Individual
Corporate
PublicTotal

2,570.2
2,974.3
650.7
6,195.3

2,624.6
3,002.6612.8
6,240.1

2,687.7
3,103.0562.7
6,353.6

2,740.2
3,091.3
498.1
6,329.7

+52.4
-11.6
-64.6
-23.8

Individual
Corporate
Ashikaga
PublicTotal

2,104.6
2,164.8
387.5
4,657.0

2,171.3
2,178.6
367.4
4,717.3

2,237.0
2,266.5
420.9
4,924.5

2,305.1
2,256.0
417.8
4,979.0

+68.1
-10.5
-3.0
+54.4

YoY

*Excluding borrowing from special account of MoF
Foreign Currency Denominated Loans
（￥ｂｎ）
FYE18
J+A

FYE19

145.8

Joyo
Ashikaga

126.8
19.0

164.2
146.8
17.3

FYE20
162.6
150.0
12.6

FYE21
150.6
139.5
11.0

（4）Loans Individual Housing Related Loans Term-end Balance（5）Unsecured Loans Term-end Balance

YoY

FYE18

（￥ｂｎ）

FYE19

FYE20

FYE21

YoY

J+A

Car Loans
Educational Loans
Free Loans
Card Loans
Total

46.7
39.0
9.1
65.0
160.0

52.0
42.5
9.8
65.4
169.9

63.3
43.4
9.1
61.2
177.1

71.4
45.4
9.3
62.4
188.6

+8.1
+2.0
+0.2
+1.1
+11.5

Joyo

Car Loans
Educational Loans
Free Loans
Card Loans
Total

32.2
31.9
2.2
26.5
93.0

35.2
34.0
3.5
26.0
98.8

45.4
34.3
3.6
23.7
107.1

50.6
35.5
3.8
24.8
114.8

+5.1
+1.2
+0.2
+1.0
+7.6

Car Loans
Educational Loans
Ashikaga Free Loans
Card Loans
Total

14.5
7.0
6.8
38.4
66.9

16.8
8.5
6.2
39.4
71.0

17.8
9.1
5.4
37.5
70.0

20.8
9.9
5.5
37.5
73.8

+2.9
+0.8
+0.0
+0.0
+3.8

（6）Loans Corporate Term-end Balance by Company Size

-12.0

（￥ｂｎ）

FYE18

FYE19

FYE20

FYE21

1,633.7
3,505.4
5,139.1

1,635.4
3,545.9
5,181.3

1,688.2
3,681.3
5,369.6

1,674.3
3,673.0
5,347.4

YoY
-13.9
-8.2
-22.2

-10.4
-1.6

J+A

Large
Medium/SMEs
Total

（￥ｂｎ）

Joyo

Large
Medium/SMEs
Total

1,159.1
1,815.1
2,974.3

1,165.1
1,837.4
3,002.6

1,220.6
1,882.3
3,103.0

1,206.9
1,884.3
3,091.3

-13.6
+1.9
-11.7

Large
Ashikaga Medium/SMEs
Total

474.5
1,690.2
2,164.8

470.2
1,708.4
2,178.6

467.6
1,798.9
2,266.5

467.3
1,788.7
2,256.0

-0.2
-10.2
-10.5

FYE18

FYE19

FYE20

FYE21

YoY

J+A

Housing Loans
Apartment Loans
Asset building loans
Total

3,396.3958.5
2.9
4,357.9

3,546.5933.6
2.8
4,483.0

3,711.7
902.3
2.6
4,616.7

3,860.8
871.2
2.4
4,734.5+149.1-31.1-0.2+117.8

Joyo

Housing Loans
Apartment Loans
Asset building loans
Total

1,640.6769.1
2.9
2,412.7

1,719.5748.6
2.8
2,471.1

1,809.7722.8
2.6
2,535.1

1,889.9694.2
2.4
2,586.5

+80.2
-28.6
-0.2
+51.4

Housing Loans
Apartment Loans
Ashikaga
Asset building loans
Total

1,755.7
189.3
1,945.1

1,826.9
185.0
2,011.9

1,902.0
179.5
2,081.5

1,970.9
177.0
2,147.9

+68.8
-2.4
+66.4

（7）Loans Corporate Term-end Balance by Area

（￥bn）

FYE18

FYE19

FYE20

FYE21

J+A

Tokyo
Local
Total

1,908.8
3,230.3
5,139.1

1,967.5
3,213.8
5,181.3

2,021.9
3,347.6
5,369.6

2,009.4
3,337.9
5,347.4

YoY
-12.4
-9.7
-22.2

Joyo

Tokyo
Local
Total

1,378.3
1,596.0
2,974.3

1,422.6
1,579.9
3,002.6

1,484.1
1,618.9
3,103.0

1,468.9
1,622.4
3,091.3

-15.1
+3.4
-11.7

Tokyo
Ashikaga Local
Total

530.5
1,634.2
2,164.8544.8
1,633.8
2,178.6

537.8
1,728.7
2,266.5

540.5
1,715.5
2,256.0

+2.7
-13.2
-10.5

55

Breakdown of Banking subsidiaries【Data】子銀行内訳（８）Deposits Term-end Balance
Individual
Corporate
Public
Total

J+A

（￥bn）

FYE18

FYE19

FYE20

FYE21

YoY

10,362.7
3,325.5
750.1
14,438.3

10,685.0
3,364.1
737.3
14,786.5

11,400.1
3,887.4
969.9
16,257.4

11,787.3
3,953.5
1,116.4
16,857.3+387.2+66.1+146.5+599.8

Individual
Corporate
PublicTotal

6,440.1
1,835.4
453.6
8,729.1

6,633.6
1,880.3
459.2
8,973.1

7,053.1
2,136.5515.8
9,705.5

7,272.7
2,180.4
600.7
10,053.9+219.5+43.9+84.9+348.4

Individual
Corporate
Ashikaga
PublicTotal

3,922.5
1,490.1
296.5
5,709.2

4,051.4
1,483.8
278.1
5,813.4

4,346.9
1,750.8454.1
6,551.9

4,514.5
1,773.1
515.7
6,803.3+167.6+22.2+61.5+251.4

Joyo（１0）Customer Assets under Custody Commissions

FYE19

FYE20

FYE21

306.0

219.7

180.0

168.2

-11.8

Joyo
Ashikaga

222.6
83.3

176.4
43.2

151.9
28.0

139.6
28.5

-12.3
+0.4

（9）Customer Assets under Custody Balance

Foreign currency deposits
JGB etc.
Mebuki Securities
Total
Investment trusts
Insurance

Joyo

Foreign currency deposits
JGB etc.
Total
Investment trusts
Insurance

Ashikaga Foreign currency deposits
JGB etc.
Total

5.69
4.67
0.98
0.04

5.91
4.26
0.68
0.08

6.22
3.25
0.55
0.06

7.93
3.25
0.61
0.01

+1.71
+0.00
+0.06
-0.04

0.49

0.72

1.13

1.19

+0.05

1.94
13.84

2.98
14.66

3.70
14.93

3.87
16.90

+0.16
+1.96

2.63
2.12
0.70
0.03

2.83
2.61
0.50
0.05

2.93
2.06
0.39
0.05

4.10
2.00
0.39
0.01

+1.17
-0.06
-0.00
-0.03

0.27

0.43

0.75

0.89

+0.14

Total

5.77

6.44

6.20

7.41

+1.20

Investment trusts(*1)

3.06
2.55
0.28
0.00

3.08
1.64
0.18
0.02

3.29
1.18
0.15
0.01

3.83
1.25
0.22
0.00

+0.53
+0.07
+0.07
-0.00

0.22

0.29

0.38

0.29

-0.08

6.12

5.22

5.02

5.61

+0.58

Foreign currency deposits
JGB etc.
Financial instrument
intermediary service
Mebuki Securities
Total
Investment trusts(*1)
Insurance(*2)
Foreign currency deposits

Joyo

JGB etc.
intermediary service

YoY

J+A

Group
total

FY21

Financial instrument

FYE18

Insurance

FY20

Insurance(*2)

Foreign Currency Deposit

Investment trusts

FY19

Investment trusts(*1)

Group
Total

（￥bn）

FYE18

FYE19

FYE20

FYE21

YoY

556.1
817.2
218.5
173.6
272.8
2,038.3

463.7
812.6
166.1
156.2
282.0
1,880.9

547.7
829.0
146.0
162.4
343.4
2,028.7

632.5
858.5
131.1
154.5
429.5
2,206.3

+84.8
+29.4
-14.8
-7.9
+86.1
+177.6

263.3
465.6
135.5
118.5
983.1

214.7
471.9
122.9
104.1
913.8

249.8
488.5
117.9
108.2
964.6

302.6
511.5
102.6
102.7
1,019.4

+52.7
+22.9
-15.3
-5.5
+54.8

292.8
351.5
82.9
55.0
782.4

249.0
340.6
43.2
52.1
685.0

297.8
340.5
28.0
54.2
720.6

329.8
347.0
28.5
51.7
757.3

+32.0
+6.5
+0.4
-2.4
+36.6

（￥bn）

FY18

Insurance(*2)
Foreign currency deposits

Ashikaga JGB etc.
Financial instrument
intermediary service
Total＊１：Sales commission+ Trust fee＊２：Excl. executive life insurance（１1）Fees from Corporate Customers
Credit Related

J+A

Consulting Related
total
Credit Related

Joyo

Consulting Related
total
Credit Related

Ashikaga Consulting Related
total

YoY

（￥bn）

FY18

FY19

FY20

FY21

YoY

7.57
2.02
9.59

8.20
1.44
9.65

7.55
1.88
9.44

8.08
3.29
11.37

+0.52
+1.40
+1.92

4.14
1.14
5.28

4.24
0.80
5.05

4.03
1.18
5.21

4.70
2.14
6.84

+0.67
+0.95
+1.62

3.42
0.88
4.30

3.95
0.64
4.60

3.52
0.70
4.22

3.38
1.14
4.52

-0.14
+0.44
+0.30

56

Breakdown of Banking subsidiaries【Data】子銀行内訳（12）Securities Balance (Balance Sheet Amount)

（￥bn）

FYE18

FYE19

FYE20

FYE21

YoY

Domestic bonds
Mebuki
Foreign bonds
FG
Stocks(Consolid
Investment trusts,etc.
ated)
Total

2,436.8
829.6
280.2
799.8
4,346.6

2,359.4
831.6
226.0
658.9
4,076.1

2,510.6
959.5
265.8
597.2
4,333.2

2,745.1
967.3
254.1
715.5
4,682.3+234.5+7.8-11.6+118.3+349.0

Domestic bonds
Foreign bonds
StocksInvestment trusts,etc.
Total

1,812.4
513.2
243.4
456.7
3,025.9

1,746.7
505.3
197.2
388.1
2,837.4

1,822.0
595.5
233.1
373.9
3,024.6

2,002.5
597.9
226.8
439.9
3,267.3+180.5
+2.4
-6.3
+65.9
+242.6

Domestic bonds
Foreign bonds
Ashikaga Stocks
Investment trusts,etc.
Total

610.9
316.3
72.4
338.7
1,338.4

600.3
326.3
64.2
266.7
1,257.5

679.1
364.0
39.1
219.1
1,301.5

734.1
369.3
33.6
271.5
1,408.8

+55.0
+5.3
-5.5
+52.3
+107.2

Joyo（１4）Strategic shareholdings (Balance including *Listed and Unlisted)

（￥ｂｎ）

FYE18

FYE19

FYE20

FYE21

YoY

125.5
110.7
14.8

114.0
99.7
14.3

98.5
84.7
13.8

76.9
64.7
12.2

FY18

FY19

FY20

FY21

-10.7
10.7
11.6
11.6

-2.0
0.4
7.3
5.6

-6.2
10.0
6.8
10.6

-7.1
3.5
1.7
-1.8

-0.8
-6.5
-5.0
-12.4

-7.3
12.4
1.6
6.7

-0.9
0.6
5.2
4.8

-3.9
9.1
4.9
10.1

-4.8
3.5
1.7
0.4

-0.9
-5.5
-3.1
-9.6

-3.3
-1.7
9.9
4.8

-1.1
-0.1
2.0
0.8

-2.3
0.9
1.9
0.4

-2.2
-0.0
0.0
-2.3

+0.0
-0.9
-1.9
-2.8

J+A
Joyo
Ashikaga（15）Gains/Losses on Securities

J+A

Joyo

FYE18

FYE19

FYE20

FYE21

StocksMebuki
Domestic bonds
FG
Investment trusts,etc.
(Consolid
Foreign bonds
ated)
Total

136.2
21.1
7.2
10.3
174.9

86.9
9.2
-21.3
24.3
99.1

139.4
2.4
33.1
35.6
210.7

131.5
-21.3
32.9
-14.2
128.9

-7.9
-23.7
-0.1
-49.9
-81.8

StocksDomestic bonds
Investment trusts,etc.
Foreign bonds
Total

128.0
19.3
12.6
10.4
170.5

85.1
9.0
-8.3
12.8
98.7

127.5
3.0
26.0
15.0
171.7

123.6
-16.3
27.4
-12.8
122.0

-3.8
-19.4
+1.4
-27.8
-49.7

StocksDomestic bonds
Ashikaga Investment trusts,etc.
Foreign bonds
Total

28.4
15.7
-2.3
2.8
44.6

20.8
11.5
-10.6
13.8
35.6

25.0
8.5
8.5
22.4
64.5

21.0
1.9
6.7
-0.1
29.7

-3.9
-6.5
-1.7
-22.5
-34.8

Joyo

StocksDomestic bonds
Investment trusts,etc.

Total

（￥bn）

（13）Securities Unrealized Valuation Gains/Losses on Available for Sale Securities

Balance
Balance
Balance

StocksDomestic bonds
Investment trusts,etc.

Total

YoY
Ashikaga

StocksDomestic bonds
Investment trusts,etc.

Total

-21.5
-19.9
-1.5

（￥bn）
YoY

57

Breakdown of Banking subsidiaries【Data】子銀行内訳(16) Expenses

（￥ｂｎ）

FY18

FY19

FY20

FY21

YoY

Personnel
Non-Personnel
Taxes
Total

60.6
46.1
7.3
114.1

61.2
46.7
7.0
115.0

59.9
43.4
6.8
110.1

58.2
43.4
6.5
108.1

-1.6
-0.0
-0.3
-1.9

Personnel
Non-Personnel
Taxes
Total

33.8
27.7
3.8
65.3

33.5
26.8
3.8
64.2

33.2
24.7
3.7
61.7

32.7
24.1
3.6
60.5

-0.4
-0.5
-0.1
-1.1

Personnel
Non-Personnel
Ashikaga
Taxes
Total

26.8
18.4
3.5
48.8

27.6
19.9
3.1
50.7

26.6
18.6
3.0
48.4

25.4
19.2
2.9
47.6

-1.2
+0.5
-0.1
-0.8

J+A

Joyo

（17）Credit related cost（18）Disclosed Claims under the Financial Revitalization Law
FYE18

J+A

FY19

FY20

FY21

YoY

J+A

9.3

19.0

22.4

19.6

-2.8

Joyo
Ashikaga

4.2
5.0

10.1
8.8

12.0
10.3

9.8
9.7

-2.2
-0.5

(Loans past due 3 month or more)(Restructured loans)

Joyo

Total
Bankrupt claims
Doubtful claims
Claims requiring monitoring(Loans past due 3 month or more)(Restructured loans)

（￥bn）

FY18

Bankrupt claims
Doubtful claims
Claims requiring monitoring

Ashikaga

Total
Bankrupt claims
Doubtful claims
Claims requiring monitoring(Loans past due 3 month or more)(Restructured loans)
Total

FYE19

(\bn)

FYE20

FYE21

15.9
125.1
32.2
－
－
173.3

12.7
129.0
27.9
－
－
169.8

10.3
143.2
27.4
0.1
27.3
181.0

13.8
151.1
27.6
0.0
27.5
192.6

+3.4
+7.9
+0.1
-0.0
+0.1
+11.5

6.1
66.4
17.5
－
－
90.2

5.7
69.9
12.5
－
－
88.2

5.5
78.0
13.0
0.0
13.0
96.7

5.4
86.5
13.3
0.0
13.2
105.2

-0.1
+8.4
+0.2
+0.0
+0.2
+8.5

8.7
58.5
14.7
－
－
81.9

5.8
59.0
15.4
－
－
80.2

4.0
65.0
14.4
0.0
14.3
83.5

7.7
64.6
14.2
0.0
14.2
86.7

+3.7
-0.4
-0.1
-0.0
-0.0
+3.1

（￥ｂｎ）
YoY

（19）Non-accrual delinquent loans（to Business）(1 month or more)
FYE18

FYE19

FYE20

FYE21

J+A

0.5

1.2

2.0

1.3

-0.7

Joyo
Ashikaga

0.3
0.2

0.3
0.9

0.0
2.0

0.8
0.5

+0.8
-1.5

YoY

58

Inquiries

Mebuki Financial Group, Inc. Corporate Planning Department
TEL+81-29-300-2600

E-mailir@mebuki-fg.co.jp

URL

https://www.mebuki-fg.co.jp/

This document has been prepared for information purposes only and does not form part of a solicitation to sell or purchase any
securities.
Information contained herein may be changed or revised without prior notice.
This document may contain forward-looking statements as to future results of operations. No forward-looking statement can be
guaranteed and actual results of operations may differ from those projected.

59