Corporate Philosophy / Purpose / To-be Future /Mid-Term Business Plan

The Gunma Bank Group’s Purpose
We use our strengths in “Connections” to spin the threads of the future for local communities

The universal concept that expresses
values of the Gunma Bank that govern
how we should comport ourselvesrate
Corpo hy
sopPhilo

The concept of the impact the Gunma Bank
Group should strive to make on society byharnessing its strengths based on thecorporate philosophy

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The “To-be Future” of the Gunma BankGroup based on the Purposes PlanesBusin

The plan that shows the efforts we will
make to realize the “To-be Future” basedon the Purpose.

Corporate Philosophy
It is our mission to take actions that will foster the development of regional communities.
The foundation of our business is to strengthen a creative relationship with our customers.
Our operations are based on the motto “Be a good citizen ﬁrst to become a good entrepreneur.”Our corporate culture is based on the value of face-to-face communication within our organization.

The Gunma Bank Group established its new Purpose on November 20, 2021. Faced with so many social issues, wereexamined the meaning of our existence and established our Purpose based on the thought, “What is the purpose of ourexistence in society, and what impact can we have on the future of society?”

Using Our Strengths in Connections
Ever since our establishment as the Gunma Daido Bank in
1932, our roots have always been in connecting lenders andborrowers together. We receive deposits and offer loans topeople in order to keep the economy running, and this has
been and will continue to be a key role for us.
Apart from our work in finance, we connect local
communities, companies and people together, and we also
connect them with our services, information, and otherresources. Through these efforts, we connect many kinds ofvalue together, and create new value. We believe that this iswhat society expects from us.
To meet these expectations from society, we will harness
our unique strengths that we have nurtured over the years toengage in initiatives for each and every one of us to connect.
For example, we can utilize our networks and information
capabilities to connect our customers with our resources andsolve management issues. We can also connect customers
who have no successor with someone who can lead suchcustomersʼ businesses or the like to the next generation,
thereby enabling a sustainable future for our customers andthe local community. By connecting customers with global
investment opportunities, we can also bring them a fulﬁllingand secure future. Each of these connections may be small
by itself, but many of them together can produce a surging
momentum like Japanʼs mighty Tone River to bring anenriching future to local communities.

Spinning the Threads of the Future for Local Communities
By “local communities,” we do not refer only to Gunma
Prefecture where our headquarters is located, but also all theregions, companies, people, and other stakeholders within ournetwork.
We aim to utilize our strengths in “Connections” to create
a future that is not only economically enriching, but that also
brings about a sustainable society through the preservationof the global environment and efforts to tackle social issues
including an aging and shrinking population.
Threads are spun using fibers from silkworm cocoons,and the home of our headquarters in Gunma Prefecture is acentral location within the development of the ﬁber industry,including the Tomioka Silk Mill, a World Heritage Site.
We use the phrase “spinning threads” in our Purpose tosignify our desire to create an enriching future for the local
community while cherishing and respecting its history.
The Gunma Bank Group will use its strengths in“Connections” to spin the threads of an enriching future whileworking with everyone in the local community.

Goal of Establishing the Purpose
Sharing of Decision Axes

Increasing Individual Job Satisfaction

Empathizing with Stakeholders

By stating the meaning of our existence insociety in the Purpose, the Group is able toshare the decision axes of the Group andits executives and employees, allowing it torespond to change.

With jobs at the Bank becoming increasingly
diverse and complex, clarifying the “Why?”behind each job to the employee performing
it will lead to higher job satisfaction.

Through the active outward dissemination andembodiment of the Purpose, we will be able toengage in business activities with higher empathy forand stronger relationships of trust with stakeholders
such as our customers, regional community,shareholders, and executives and employees.

Steps to Purpose-Based Management

PurposeWe use our strengths in “Connections” to spin the threads of the future for local communities

To-be Future
Sustainable development of local communities and the Gunma Bank Group

Mid-Term Business Plan
Innovation for “Purpose” (Plan period: April 2022‒March 2025)

2GUNMA BANK REPORT 2023

[Establishment] November 2021

[Instillment] November 2021 and Beyond[Implementation] April 2022 and Beyond●When considering the Purpose, we solicitedand received 755 opinions from Group
executives and employees regarding (1)through (3).
(1) Essential strengths of the Group(2) Expectations from society(3) The meaning of the Groupʼs existence●After repeated discussions based on theseopinions, we decided on the Purpose after
more than six months of consideration.
●It was announced to all executives andemployees by the President in a video.

●Individuals
・Each executive and employee was asked toestablish a “Personal Purpose” based on thePurpose.
・Personal Purposes are shared within eachdepartment and branch to encourage mutual
support of their realization.
・Each executive and employee then sets goals
based on their Personal Purpose.
●Districts, Branches
・Regional Strategies are established based onthe Purpose.
・Each branch then sets their mid-term branchmanagement policy based on the Purpose
and Regional Strategy.
●Tools for Instilling the Purpose
・Videos of the President explaining thePurpose to employees
・Posters at branches and headquarters
・Printing the Purpose on business cards,
newspaper ads●T he Mid-Term Business Plan Innovation
for “Purpose” was established based on thePurpose.

Discussion
betweenPresident Fukai
and youngemployees onthe formulationof the Purpose

Activities (processes) aimed not only athitting proﬁt targets, but at achieving theKPIs in Connections (quantitative targets
aimed at the realization of the Purpose) andthe realization of the Purpose are evaluatedand commended.
Becoming a Group that achieves balance
between “social value” and “economic value”

GUNMA BANK REPORT 20233