Mid-Term Business Plan

StrategicTheme2ciety and customers (social value) and making a reasonableprofit (economic value) as a result based on the Purpose.
Along with working to strengthen our ability to “connect” by implementing five reforms while making use ofdigital technology, with this plan we are making efforts todemonstrate our ability to “connect” through investments
and loans, and consulting activities, that help to solve theissues faced by society and our customers.

●Sales Process Reforms withEmphasis on Progress and Autonomy●Business Process Reforms thatContribute to Increasing Productivity●Channel Reforms that Adapt to Changes
in the Environment and Customer Needs●Innovations in Human Resources
aimed at Making the Best Use of Creativity●Reforms in Collaboration with External
Parties for Improving Strengths

P48
P48
P49
P44
P42

Reinforce strengths in “Connections”
by five reform initiatives
in order to “deepen” and “extend (new strengths)”“Spinning the Threads” of the Future
by Exercising Our Strengths in “Connections”●Involvement or the like in Regional Sustainability/Initiatives for SDGs and ESGs
●Coronavirus-ready Support for Finance,Core Business and Succession of the Businesses●Personalized Consulting Service for
Each Individual Customer●Exploring New Business Opportunities through the Group’sComprehensive Capabilities and Deepening Existing Businesses●Reinforcement of Our Management Structure to Consistently
Demonstrate Our Strengths in “Connections”

Purpose

P36
P38
P52

“Innovation New Dimension”- Toward delivering value -We use our strengths in“Connections” to spin the threadsof the future for local communities

Financial intermediation,
consulting, vitalizing regional
industries, business matching,etc.

Core business net income (excluding gain(loss) on cancellation of investment trusts)

45 billion yen

39.9 billion yen

Non-interest business income

25 billion yen

21.0 billion yen

Profit attributable to owners of parent

30 billion yen

27.9 billion yen

Consolidated final profit

4.0 billion yen

3.3 billion yen

RORA

0.7％ or above

0.72%

OHR

Around 55%

56.4%

ROE

5% or above

5.3%

13.5％ or above

13.82%○Consulting services in depth○Promote digitalization of the Groupand the Region○Corona support (financial and corebusiness support)○The “to-be future” of the Group→Sustainable development of local communities
and the Group○Regarding FY2030 as a midway point to our to-befuture, we will focus on the following priority issues.
○Priority issues
Sustainable development of regional economy
Preservation and creation of the global environment
Promotion of a variety of human resources into
active positions
Promotion of partnerships○Key initiatives and goals
・Comprehensive regional group contributing tosolving regional Issues
・Decarbonize the Bank (net zero) and the region
・Sustainable growth of local industries
・Stable asset formation for individuals
・Local sustainability through solutions for“connecting to the next generation”
・Digital channels for all financial transactions
・Realization of women empowerment andwellbeing of employees

Forecasting

Numerical Plan (KPIs in Connections)*
KPIs in Connections

Results (Mar. 2023)○Promote cashless payments in the region○Strengthen business succession andinheritance services○Improve human resource capabilities
in light of the changing environment

The “to-be future” based on the Purpose

IssuesExercise strengths
in “Connections”

TargetTotal capital ratio

2019 Mid-TermBusiness PlanResults

Numerical Plan: Consolidated quantitative target as of the final fiscal year of the plan (fiscal year ending March 31, 2025)
Parameter○Promote decarbonization of
the Bank and the local communities○Sustainable industrial growth andcreation of new industries○Explore new businesses

P34

Expectations fromsociety and customers

Reinforce strengths
in “Connections”

What to be done in three years

P27

Spinning the threads of the future by exercising our strengths
in “Connections” in order to meet expectations from society
and customers, and both apparent and inapparent needs

Strengths of theGunma Bank Group

Information, trust,
human resources,
network, etc.

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

Backcasting

3for thefuture

Purpose

Implementation of Digital Strategies as the Foundation for“Connections and Spinning the Threads” ...P50

Reinforce Strengths in “Connections”
by Five Reform Initiatives

FY2025 〜

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Policy1

FY2022 〜

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We have entered the second year of our Innovation for Purpose mid-term business plan which runs from April 2022 toMarch 2025. The New Mid-Term clarifies that we will workon management based on the Purpose established in November 2021, “We use our strengths in connections to spin thethreads of the future for local communities.” Its goal is to accelerate innovation, which was the goal of the Last Mid-Term.
The Gunma Bank Group will aim to achieve sustainablegrowth by proactively working to resolve issues faced by so-FY2019 〜knaBamnuGehT

Mid-Term Business Plan “Innovation for Purpose”“Connect” lender andborrower

Parameter

TargetResults (Mar. 2023)

500.0 billion yen

266.2 billion yen

400.0 billion yen

113.5 billion yen

75.0 billion yen

62.9 billion yen

3,000 cases

1,000 cases

200 cases

82 cases

1,250.0 billion yen

1,059.2 billion yen

400.0 billion yen

296.1 billion yen

600 cases

330 cases

1,000 cases

298 cases

Profit on loans (FY2024)

54.5 billion yen

53.4 billion yen

Corporate service revenue (FY2024, consolidated)

6.5 billion yen

6.0 billion yen

Customers’ deposited financial asset revenue(FY2024, consolidated)

9.0 billion yen

6.8 billion yen

Amount of sustainable finance executed(three-year cumulative total)
Amount of housing loan executed(three-year cumulative total)
Balance of unsecured consumer loan (as of March 31, 2025)“Connect” customers“Connect” businesses andindividuals“Connect” customers’
asset with their Future“Connect” for the
next generation

Key figures
for Purpose-based
sales operation

Number of business matching cases(cumulative for three years)
Number of staffing cases closed (cumulative for three years)
Balance of customers’ deposited financial assets(consolidated, as of March 31, 2025)
Of which, investment trusts(consolidated, as of March 31, 2025)
Number of business succession issues resolved(cumulative for three years)
Number of contracts for inheritance-related services(cumulative for three years)* KPIs in Connections are concrete quantitative targets established in order to achieve both the realization of Purpose and the Bank’s profit targets.

24

GUNMA BANK REPORT 2023

GUNMA BANK REPORT 202325