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

April 13, 2022
1

Table of Contents
１. Summary of the Second Medium-Term Group
Business Plan / Environmental Awareness(1) Results of the Second Medium-Term Group
Business Plan
(2) Environmental Awareness４. Initiatives under the Basic Strategies【Basic Strategy 1】

Pursue a business model to support local communities【Basic Strategy 2】

Build a sustainable management base【Basic Strategy 3】

Develop human resources and promote active participation

２. Long-Term Vision 2030

５. Performance Targets(1) Formulation of Long-Term Vision(2) Approach to Realization of Long-Term Vision(1) Business Objectives / Main Performance Targets(2) Dividend / Shareholder Return Policy

３. Summary of the Third Medium-Term Group
Business Plan
(1) Position of the Third Medium-Term Group
Business Plan
(2) Basic Strategies of the Third Medium-Term
Group Business Plan

６. Value Creation Process / Initiatives for Sustainability(1) Value Creation Process(2) Sustainability Policy(3) Main Initiatives for Achievement of ESG / SDGs2１（1） Results of the Second Medium-Term Group Business Plan

Results in both structural reform and expansion of consulting services during the second medium-term group business plan.
We invested for further growth and building new business models such as introduction of banking application and reorganization of groupcompanies.
Although consolidated ROE and net income were below the plan due to increase of credit related costs from COVID-19, core net businessincome has exceeded the plan by FY2020.

Second Medium-Term Group Business Plan (April.2019～March.2022)
Main Results

Achievement of Business Objectives

 Strengthened Business Support＜FY2021＞

Create growth business Expanded consulting services for individuals

models with local regions

 Strengthened non-face-to-face channel

Basic strategy １

TargetForecast for FY2021

Consolidated ROE

5.0％or more－

Consolidated net income*1

around ¥47.0bn¥38.0bnaround 60％－

Core net business Income*3 around ¥65.0bn－

Core OHR (Two Banks total)*2
Basic strategy 2
Structural reform for Reorganized branch network【Reference】

 Integrated system and unified business processing
 Reorganized Group companies and strengthened
corporate governance＊1 Attributable to owners of the parent＊2 Excluding gains/losses on cancellation of investment trusts and system integration costs＊3 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

Basic strategy 3

 Revised human resources system of both banks

Changes of Core Net Business Income＊3

Developing human Enhanced specialized personnel

enhanced productivity

resources for value
creation Developed diversity promotion system

Invest in growthEstablish new
business models

Revenue fromconsulting services¥70.6bn＜Shift of business resources by structural reform＞ *Expenses are compared between
FY2020 and FY2018
Human
Invested（Consulting field）：around 200 people（as planned）
resources
Freed-up（Business processing）：around 1,200 people（+200 than plan）
ThingsConsolidation of Branch ： 62 locations
Function review of Branch： 152 locations

Money

Expenses*4： -¥5.2bn（exceeded plan）（achieved ahead of schedule）*4 Excluding system integration costs¥66.0bn¥68.3bn
Results
Plans

Enhance productivity
Reduce cost

Structural reform

2018

2019

2020

2021

3

１（2） Environmental Awareness



Although we achieved improvement in core business profitability during the Second Medium-Term Group Business Plan, thetraditional banking business faced increased severity due to technological innovations, accelerating social structure changes such as

population decline, and COVID-19.
We will continue to enhance and deepen comprehensive financial services and take on the challenge of new business areas toachieve sustainable growth of both local communities and our Group.

Challenges considering the Second Medium-Term Group
Business Plan
 More efficient traditional banking services / Maintenance and expansion ofcustomer base
 Enhancement of consulting functions and services to solve issues

Direction of Initiatives
Achieve sustainable growth ofboth local communities
and our Group Expansion of business areas to solve various regional issues
 Contribution to decarbonized and recycling-oriented society

External Environment

Low Birthrate, Aging and Declining
Population

Industrial and Work
Structure Changes

Changes in Social Structureand Lifestyle（with / after COVID-19）

Innovation（Progress of Digitalization andTechnology）

Shift toDecarbonized andRecycling-oriented Society

Deregulation and Changes inCompetitive Environment

Enhancement and deepeningof comprehensive financial
services

Challenge of
new business areas

4２. Long-Term Vision 2030

5

2（1） 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
6（*3） Income from customers＝ Difference of interests between loans and deposits＋ Consolidated fee income ※excluding securities' income

2（2） 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

7

3. Summary of the Third Medium-Term Group Business Plan83（1） 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)
9＊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（2） 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)10４. Initiatives under the Basic Strategies

11【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.12

【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

13

【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.

14

【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
partners15

【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％16

【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
 Securing and developing DX personnel ・・・ DX personnel ： 400 people
for promoting DX

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

17

【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 management18【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 balance19５. Performance Targets

205（1） Business Objectives / Main Performance Targets
Business Objectives
 We set the goals of consolidated net income, core

Business objective indicators

FY2020 Results

FY2024

OHR (two banks total) and consolidated ROE(based on shareholder’s equity) as our business

Consolidated net income

objectives. We will achieve the levels shown on the（Attributable to owners of the parent）¥36.4bn ¥52.0bn or more

right by carrying out basic strategies.

Core OHR (Two Banks total)*1

61.7％

Under 58％

Consolidated ROE （Based on shareholder’s equity）

4.4％

5.5％ or more

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

Main performance targets

FY2020 Results

FY2024

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

Core net business income（Two Banks total）*2¥68.3bnaround ¥80.0bn

Consolidated ordinary profit¥54.1bnaround ¥75.0bn

Average balance of Loans（Two Banks total）*3
Average balance of Deposits（Two Banks total）*4¥11.0 tn
¥15.7 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 deposit21

5（2） Dividend / Shareholder Return Policy
Results of Shareholder Return

Dividend / Shareholder Return Policy
 We will target a Total Return Ratio(*) of 30%

46.3

43.0

or more while taking into account both the

（¥bn）

36.3

36.4

maintenance of solid capital levels for future

31.5

growth and the appropriate distribution of
profits to our shareholders. We will continue
to consider the dividend level.
Shareholder
ReturnSustainable Value
Creation for
Shareholders
Soundness

19.5

12.9

14.9
2.0

16.8
3.9

12.7

12.9

12.9

12.8

12.7

11.9

FY2017FY2018FY2019FY2020

FY2021（Scheduled）

Total Dividends

Growthinvestment

38.0

Fiscal Year

FY2017

Share Repurchase
FY2018Net Income

FY2019FY2020

FY2021（Scheduled）

Annual Dividends

¥11.0

¥11.0

¥11.0

¥11.0

¥11.0

Total Dividends¥12.9bn¥12.9bn¥12.8bn¥12.7bn¥11.9bn

Payout Ratio

30.0％

27.8 %

35.3 ％

34.9 ％

31.4 ％

Share Repurchase－¥2.0bn¥3.9bn－¥19.5bn

Total Return Ratio

30.0 ％

32.3 ％

46.2 ％

34.9 ％

82.9％(*) Total Return Ratio ＝ （Total amount of dividends + Total amount of acquisition of own shares）／Net income22６. Value Creation Process
Initiatives for Sustainability23

6（1） 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 ・・・

InputIntellectual
capitalSocialcapitalOutcomeGroup 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
businessareas

Take on the challenge tosolve regional issues,
going beyond theconventional framework

Traditionalbanking
services area

Financial capital• Sufficient capital• Sound assets• Stable funding• Realize prosperous living• Support for sustainable corporate growth• Support for decarbonization / SDGs inlocal regions• Contribute to regional revitalization /urban development

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

Change the way ofproviding services andincrease their value• Deposits• Loans• Settlement / Money Transfers

Corporate GovernanceRisk Management

ComplianceInternal Audit

Comprehensive Strengthen our consulting
and group functions andfinancialservices area contribute to solve moreManagementbase that
supports ourbusiness

Explanation ofeach capital● Changes in lifestyle and value

Business Activities

Financial
capitalHumancapital● Progress of digitalization and technology

Human capitalIntellectual capital

Prosperous
imagination andproblem-solving
skillsServices that
continue to betrustedLocal 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 management24

6（2） 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.
We will establish new organizations to enhance promotion of sustainability in the Group Head Office and two
subsidiary banks.
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.
Materiality

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

Revitalization ofregional economy
and local
communities

Deepening comprehensive financial services•••【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 】

Response toaging society
Promotion ofdiversity

Long-term KPI for
sustainability

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

Deepening comprehensive financial services•

Initiatives for regional revitalization / SDGs

【Specific Strategy １-1 】

Promotion ofdigitalization

Goal of SDGs

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 】

Develop human resources and promote active
participation•

Implementation of diversity

End of Mar. 2025
“ 35％ ” or more25

6（3） Main Initiatives for Achievement of 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

26

Inquiries
Mebuki Financial Group, Inc. Corporate Planning Department
TEL+81-29-233-1151

E-mailir@mebuki-fg.co.jp

URL

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

This material was prepared only for the purpose of providing information and does not form part of a solicitation to sell orpurchase any securities.
All or part of statements contained herein may be changed or revised without prior notice.
This material may contain forward-looking statements as to future results of operations based on the information available andthe assumptions deemed reasonable at the time of publication.
These forward-looking statements may greatly fluctuate due to various factors, such as fluctuations in stock prices in Japan,
development and modification of policy, law, business practice and interpretation by governments and central bank,occurrence of new bankruptcies, changes in the domestic and overseas economic environment, geopolitical risks and othercauses beyond our Group's control.
These statements are not represented as providing a guarantee of the future performance and actual results may be subject
to risks and uncertainties. Accordingly, you are kindly requested to bear in mind that actual results may differ from our
predictions or forecasts described herein.

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