Iyo Bank First Half of
Fiscal 2021 Earnings Briefing Materials（April 1, 2021 – September 30, 2021）
Investor Relations 2021

Iyo Bank
December 3, 2021

IndexI. Summary of Earnings for the First Half of Fiscal 2021
II. Main Strategies and Progress of Fiscal 2021 Medium-Term
Management Plan
II-1. Major Numerical Targets of Medium-Term Management Plan
II-2. Progress of Business Strategies and Plan

II-3. Status of Efforts for ESG and SDGs
II-4. Profit / Loss Forecasts, Capital Policy, and Start of Considerationof Transition to Holding Company Structure
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐1‐

Profit and Loss Overview for the First Half of Fiscal 2021
Mainly due to a high level of core business gross profit, profit increased at each profit stage and a high level ofprofit was continuously secured

Profit and Loss Overview
Nonconsolidated results(Units: Millions of yen)Core business gross profit
Interest and dividend income
Fees and commissions
Of which, revenue on assets incustody
Other operating income(Excluding profit/loss related to bonds
including JGBs, etc.)
Expenses (-)
Personnel expenses
Nonpersonnel expenses
Taxes
Core business net income
Core business net income (excluding
gain (loss) on cancellation of
investment trusts)
Credit costs (-) ①+②-③
Provision of reserve for general loan
losses ①
Amortization of non-performing loans②
Recoveries of written off claims ③
Gain (loss) related to securities
Gain (loss) related to bonds including
JGBs, etc.
Gain (loss) related to stock, etc.
Other temporary gain (loss)
Ordinary income
Extraordinary income (loss)
Income before income taxes
Net income
Ordinary revenue
Business net income

First half offiscal 2021

YoY

Increase/
Decrease

41,88336,891
3,256+2,065+2,082
+231

834

+149

685

1,735

(248)

1,983

24,303
12,933
10,203
1,166
17,579

(596)
+70
(172)
(494)
+2,660+17.83%24,89912,863
10,375
1,660
14,91917,030+2,919+20.69%14,111

3,576+2,143

1,433

495

+103

392

3,335

+2,104

1,231

253
3,984

+63
(922)

190
4,906

171

(3,597)

3,768

3,812
1,788
19,775(65)
19,70914,002+2,674
+703
+297
+155
+452
+363

+2.66%

1,138
1,085
19,478(220)
19,257
13,63960,342
17,256+6,567(1,039)+12.21%(5.68%)

53,775
18,295

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

+5.19%First half offiscal 2020

(2.39%)+1.52%

39,81834,8093,025■Core business gross profit

Up ¥2,065 million YoYInterest and dividend income increased due to increased gain on securities
management from stronger foreign-denominated securities, an increase infund distributions, etc.

■ Expenses (-)

Down ¥596 million YoY

Nonpersonnel expenses decreased through efforts for improvement ofoperational efficiency and reductions in expenses. Also, taxes decreased due
to a decrease in the consumption tax.

■ Credit costs (-)

Up ¥2,143 million YoY

Amortization of non-performing loans increased due to a increase inbankruptcies and downgrades.

■Gain (loss) related to securities

Down ¥922 million YoY

While gain (loss) related to stock, etc. increased by promoting the sales ofstrategic equity holdings, gain (loss) related to bonds including JGBs, etc.
decreased due to rebalancing of the bond portfolios.

■Net income

Up ¥363 million YoY‐2‐

Factors in Increase / Decrease in Core Business Gross Profit for the First Half of Fiscal 2021
Factors in Increase / Decrease in Core Business Gross Profit

A high level of core business gross profit was secured
due mainly to an increase in gain on securities management

Year-on-year (First Half of Fiscal 2021 – First Half of Fiscal 2020)(Units: Billions of yen)
(Note) Differences in yield of domestic currency utilize yield differences withdomestic deposits, etc.
Differences in yield of foreign currency utilize yield differences withforeign currency funding costs
The number in parentheses for each profit is the actual profit amountInterest and dividend income(¥36.8 billion)

Of which, domestic
currency(¥20.3 billion)

Gain on loan
management(¥24.0 billion)(0.32)(0.03)Of which, foreign currency(¥3.7 billion)

+0.29

+2.08

Of which, domestic currency(¥7.9 billion)

Gain on securities
management(¥12.9 billion)

Core businessgross profit(¥41.8 billion)

+0.22

+1.71

+2.06

Of which, foreign currency(¥4.9 billion)

+1.49

Other
(¥0.0 billion)

Volume factors +0.09 (Average loan balance up ¥18.4 billion)
Yield difference factors (0.41) (Yield difference down 0.02%)
Volume factors +0.82 (Average loan balance up ¥119.6 billion)
Yield difference factors (0.53) (Yield difference down 0.17%)
Volume factors (1.08) (Average securities balance down ¥149.3 billion)
Yield difference factors +1.56
Gain on fund cancellation factors (0.26) (Decrease in gain on
cancellation of investment trusts, etc.)
Volume factors +0.85 (Average securities balance up ¥120.3 billion)
Yield difference factors +0.64 (Yield difference up 0.23%)+0.40
Fees andcommissions(¥3.2 billion)

+0.23
Other
(¥1.7 billion)(0.25)
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Revenue on assets in custody(¥0.8 billion)+0.15... Insurance agency commissions +0.07, investment trust related commissions +0.06, etc.

Other(¥2.4 billion)+0.08... Solutions-related commissions +0.13, etc.

… (0.49) from gain (loss) on foreign exchange transactions, +0.24 from gain (loss) on derivatives‐3‐

Loans, Deposits, and Assets in Custody for the First Half of Fiscal 2021
Deposits, etc.

Balance of deposits, etc. by region
Region(Units: Billions of yen)First Half of
Fiscal 2020

First Half of
Fiscal 2021

Within Ehime Prefecture

4,766.9

4,990.7+223.8

Increase/
Decrease+4.7%

Shikoku (excluding Ehime)

255.6

291.4

+35.8

Kyushu

171.5

185.1

Chugoku

282.9

Kinki

Loans were up 1.7% year-on-year

Loans

Deposits, etc. were up 6.8% year-on-year

Balance of loans by region
Region(Units: Billions of yen)First Half of
Fiscal 2020

First Half of
Fiscal 2021

Within Ehime Prefecture

2,465.1

2,496.4+31.3

Increase/
Decrease+1.3%+14.0%

Shikoku (excluding Ehime)

326.2

340.1

+13.9

+4.3%

+13.6

+7.9%

Kyushu

310.9

318.6

+7.7

+2.5%

285.7

+2.8

+1.0%

Chugoku

458.7

483.5

+24.8

+5.4%

167.5

193.4

+25.9

+15.5%

Kinki

387.2

388.2

+1.0

+0.3%

Tokyo and Nagoya

418.6

496.8

+78.2

+18.7%

649.0

620.9

(28.1)(4.3)%

Overseas, etc.

121.3

159.5

+38.2

+31.5%

116.4

112.6

(3.8)

(3.3)%

6,184.6

6,603.0+418.4+6.8%

Tokyo and Nagoya
Financial Market Business
OfficeTotal (domestic branches)

4,714.0

4,760.5

+46.5

+1.0%

160.5

198.5

+38.0

+23.7%

4,874.5

4,959.1

+84.6

+1.7%

Balance of assets in custody wereup 4.5% year-on-year

Balance of assets in custody(Units: Billions of yen)First Half of
Fiscal 2020

First Half of
Fiscal 2021

Group assets in custody

574.5

600.2

+25.7

Increase/
Decrease+4.5%

Balance at the Bank
Balance at Shikoku Alliance
Securities
Sales of Group assets incustody
Sales at the Bank
Sales at Shikoku Alliance
Securities

347.8

353.9

+6.1

+1.8%

226.6

246.3

+19.7

+8.7%

54.8

75.1

+20.3

+37.0%

20.9

30.4

+9.5

+45.5%

33.8

44.7

+10.9

+32.2%

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

YoY

Overseas, etc.
Total

Share within Ehime Prefecture as of September 30, 2021
(excluding Japan Post, agricultural cooperatives, etc.)
Deposits

Assets in Custody

YoY

Loans

Total

YoY

The
Bank

Regional banks otherthan the BankCity banks /Trust banks

Secondregional banks

Credit unions‐4‐

Credit Costs and Disclosed Non-performing Loans for the First Half of Fiscal 2021
Credit Costs
Credit costs by factor(Units: Billions of yen)First Half
Credit costs total
Provision of reserve forgeneral loan losses
Amortization of nonperforming loans

Fiscal 2018

Fiscal 2019

First HalfFirst Half

Fiscal 2020

Fiscal 2021
First Half

YoY

0.8

5.8

3.2

6.9

1.4

12.5

3.5

+2.1

(0.5)

0.2

0.6

0.4

0.3

9.1

0.4

+0.1

1.7

6.1

2.8

7.1

1.2

3.9

3.3

+2.1

Bankruptcies

0.5

1.0

0.8

1.3

0.3

0.5

1.4

+1.1

Downgrades, etc.
Upgrades andcollections
Recoveries of written off
claims (-)
Credit management
expense ratio (*)

2.3

6.9

3.6

8.1

2.6

6.2

3.4

+0.8

(1.1)

(1.8)

(1.6)

(2.2)

(1.7)

(2.8)

(1.5)

+0.2

0.2

0.5

0.2

0.7

0.1

0.6

0.2

+0.1

0.04%

0.13%

0.14%

0.15%

0.06%

0.26%

0.14%

+0.08P

Credit costs were up ¥2.1 billion year on
year due to increased bankruptcies anddowngrades, etc.

(*) Credit management expense ratio = Credit costs / Average loan balance

Ratio of Disclosed Non-Performing Loans
Amounts and ratios of disclosed non-performing loans under the Financial Reconstruction Act(Units: Billions of yen)

Fiscal 2020

Fiscal 2021
First Half

3.1

3.6

1.8

(1.3)

53.2

54.5

52.8

57.9

+3.4

18.6

18.0

18.0

16.8

23.9

+5.9

Total disclosed non-performing loans

71.3

77.7

75.7

73.3

83.7

+8.0

Ratio of disclosed non-performing loans

1.48%

1.55%

1.47%

1.39%

1.60%

+0.13P

Fiscal 2018

Fiscal 2019

Loans to bankrupt or effectively bankrupt
borrowers

6.0

6.5

Doubtful assets

46.6

Credit subject to specific risk management

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

First Half

YoY

Although ratio of non-performing loan
was up, continued at a low level of 1.60%
owing to limited impact of bankruptcies
and downgrades, etc.

‐5‐

Evaluation Gain (Loss) on Securities and Equity Ratio for the First Half of Fiscal 2021
Evaluation Gain on Securities¥316.3 billion✓ Maintained a top level among regional banks✓ Secured high soundness, sufficiently exceeding required equity ratio

Evaluation gain on securities (nonconsolidated)(Hundreds of Millions of Yen)

3,078

2,349
2,184
21,45418,909Consolidated gross equity ratio

Nikkei Average (Yen)

29,1782,276

14.82%

Consolidated Gross Equity Ratio

29,452

3,163

2,344

21,205

18,917

March 2017 March 2018 March 2019 March 2020 March 2021 September
2021

Gain / loss on
Nikkei average (right axis)
securities (left axis)(Note) Excludes evaluation gains / losses on money held in trust

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

March 2017

March 2018

Tier 1 ratio forcommon stock, etc.

March 2019
Gross equity ratio

March 2020

March 2021

September
2021

‐6‐

Response to COVID-19
Continuation of Fund Management Support for Customers
COVID-19-related Loans

Changes in Condition■ Loans made (cumulative)
Approx. ¥220.0 billion(Hundreds ofMillions of Yen)

With Credit
Guarantee
Association

ProperThe Bank’s Response amid the COVID-19 Pandemic(Number)Number■ Business support including fund management■ Number of objects for condition changes (cumulative)

Approx. 330 borrowers(Number)Businesses→ COVID-19-related loans, response to condition changes, the support
team for COVID-19 measures

Individuals■ Expansion of non-face-to-face channels
RegionCustomers→ Release of apps such as "HOME," "SAFETY," and "AGENT"→ Providing new cashless services such as debit cards■ Thorough infection prevention for customers and employees→ Shortening business hours (Introduction of lunch break from 11:30 to12:30)→ Shifts with reduced staffing, remote work, restrictions on movementand dining together, etc.

March 2021

September 2021

March 2021

■ Development of remote environment

September 2021

Employees

Support by the Support Team for COVID-19 Measures
Main support methods

Examples of efforts

・Business matching
・ICT consulting
・Business succession, M&A
・Financing
・Primary industry support
・Staffing・Manufacturer support
・Overseas businesssupport・Local product support
website■Supported sales channel development by
utilizing networks such as various
alliances for customers who are seeking
to develop sales channels due to thecancellation of business meetings or adecrease in sales■Developed a remote work environment
by utilizing ICT consulting for customers
who are considering introducing workfrom home

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Results (as of September 30,

50

Done

457

Total

507

Providing wide support forbusiness issues by forming■ Start of COVID-19 workplace vaccination→ From the end of August 2021, workplace vaccination started

2021)

In
progress→ Renewal of web conferencing system (ZOOM), distributed iPads to allbranches■Recording provision for COVID-19 measures
Financialaspect→ Recorded provision for COVID-19 measures of ¥8.7 billion in earnings
for fiscal 2020
→ Provision that is preventively recorded is utilized during an economic
downturn, which contributes to securing stable profits less sensitive

to economic changes and trends of COVID-19

teams across the organization‐7‐

IndexI. Summary of Earnings for the First Half of Fiscal 2021
II. Main Strategies and Progress of Fiscal 2021 Medium-Term
Management Plan
II-1. Major Numerical Targets of Medium-Term Management Plan
II-2. Progress of Business Strategies and Plan

II-3. Status of Efforts for ESG and SDGs
II-4. Profit / Loss Forecasts, Capital Policy, and Start of Considerationof Transition to Holding Company Structure
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐8‐

Fiscal 2021 Medium-Term Management Plan _ Major Numerical Targets I✓ Currently, a profit level that exceeds the plan has been achieved, and the numerical targets are proceeding smoothly✓ Aiming to maintain and improve profitability and productivity and achieve the numerical targets through steady implementation of
the strategies under the Medium-Term Management Plan, though a severe business environment is expected to continue[Major Numerical Targets]

Fiscal 2020
Results

Fiscal 2021
Expected

Targets for
Fiscal 2023

¥86.6 billion¥86.3 billion¥86.0 billion¥18.0 billion¥21.0 billion¥23.0 billion

3.82%

4.35%

4.0% or more

Consolidated core OHR

60.19%

59.69%

Approx. 60.0%

Consolidated common stock Tier 1
ratio

14.58%

14.39%

Approx. 15.0%

Items
Consolidated core business grossprofitProfit attributable to owners ofparentConsolidated ROE (shareholders’equity basis)

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐9‐

Fiscal 2021 Medium-Term Management Plan _ Major Numerical Targets II
Planning an average balance for fiscal 2023 totaling ¥6,685.0 billion with an increase by approx. ¥500.0 billion
for three years of the Medium-Term Management Plan

Deposits, etc.

[Plans for average deposits, etc., balance and assets in custody balance](Units: Billions of yen)

Fiscal 2021
Fiscal 2020
Results

Expected

Fiscal 2022
YoY

Plan

Fiscal 2023
YoY

Plan

Increase/decreaseduring the Plan

YoY

Average deposits, etc., balance

6,184.6

6,615.0+430.46,580.0(35.0)

6,685.0+105.0+500.4

Of which, individual deposits

3,658.3

3,809.0+150.7

3,827.0+18.0

3,876.0+49.0+217.7

593.5

602.0

+8.5

626.0

+24.0

657.0

+31.0

+63.5

348.3

352.0

+3.7

359.0

+7.0

372.0

+13.0

+23.7

245.2

250.0

+4.8

267.0

+17.0

285.0

+18.0

+39.8

Group assets in custody balance
Of which, balance of assets incustody at the Bank
Of which, balance at Shikoku Alliance
Securities

Loans

Planning an average balance for fiscal 2023 totaling ¥5,290.0 billion with an increase by approx. ¥395.0 billion
for three years of the Medium-Term Management Plan

[Plans for average loan balance (including Singapore Branch)](Units: Billions of yen)

Fiscal 2021
Fiscal 2020
Results

Expected

Fiscal 2022
YoY

Plan

Fiscal 2023
YoY

Plan

Increase/decreaseduring the Plan

YoY

Average loan balance

4,894.4

5,000.0+105.6

5,155.0+155.05,290.0+135.0+395.6

Corporate loans

3,246.8

3,310.0+63.2

3,365.0+55.0

3,433.0+68.0+186.2

Of which, within Ehime

1,438.6

1,487.0+48.4

1,528.0+41.0

1,538.0

+10.0

+99.4

Individual loans

1,130.7

1,159.0+28.3

1,224.0+65.0

1,281.0+57.0+150.3

Municipal loans

232.2

212.0

(20.2)

214.0

+2.0

211.0

(3.0)

(21.2)

Financial Market Business Office

116.3

116.0

(0.3)

117.0

+1.0

117.0

+0.0

+0.7

Singapore Branch

168.2

203.0

+34.8

235.0

+32.0

248.0

+13.0

+79.8

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐ 10 ‐

IndexI. Summary of Earnings for the First Half of Fiscal 2021
II. Main Strategies and Progress of Fiscal 2021 Medium-Term
Management Plan
II-1. Major Numerical Targets of Medium-Term Management Plan
II-2. Progress of Business Strategies and Plan

II-3. Status of Efforts for ESG and SDGs
II-4. Profit / Loss Forecasts, Capital Policy, and Start of Considerationof Transition to Holding Company Structure
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐ 11 ‐

Business Strategy and Plan for Realizing the Long-Term Vision✓ Toward achieving a long-term vision of a “corporate group continuing to create and provide new value,” the Bank will work to further deepen and evolve the DHD model centered on fivebusiness strategies and four plans. By doing so, we will strive to strengthen relationships of trust with local communities and customers, and work to improve sustainability as a corporategroup.

Plan

Business Strategies

Achieving a long-term vision of a "corporate group continuing to create and provide new value”

Medium-term view (3 years)
Corporate related
strategies

Personal related
strategies

Market investment
strategies

Ship related strategies

BPR strategies

Plan for IT

Plan for branches

Plan for HR
development

Plan for humanresources

To be worked on under thisthree-year Medium-Term
Management Plan and developed
according to future changes inenvironments

Responding to issues from a long-term
perspective with an eye on adapting tochanges in the environmentLong-term view (7 to 10 years)

Iyo Bank Group
Efforts by the Group as a whole

Iyogin Leasing/Iyogin Computer Service/The Iyogin Credit Guaranty/The Iyogin Business Service/Iyogin Capital/Iyogin Regional
Economy Research Center/Iyogin DC Card/Shikoku Alliance Securities/Iyogin Challenge & Smile

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐ 12 ‐

Business Strategy and Plan for Realizing the Long-Term Vision✓ Toward achieving a long-term vision of a “corporate group continuing to create and provide new value,” the Bank will work to further deepen and evolve the DHD model centered on fivebusiness strategies and four plans. By doing so, we will strive to strengthen relationships of trust with local communities and customers, and work to improve sustainability as a corporategroup.

Plan

Business Strategies

Achieving the long-term vision of a “corporate group continuing to create and provide new value”

Medium-term view (3 years)
Corporate related
strategies

Personal related
strategies

Market investment
strategies

Ship related strategies

BPR strategies

Plan for IT

Plan for branches

Plan for HR
development

Plan for humanresources

To be worked on under thisthree-year Medium-Term
Management Plan and developed
according to future changes inenvironments

Responding to issues from a long-term
perspective with an eye on adapting tochanges in the environmentLong-term view (7 to 10 years)

Iyo Bank Group
Efforts by the Group as a whole

Iyogin Leasing/Iyogin Computer Service/The Iyogin Credit Guaranty/The Iyogin Business Service/Iyogin Capital/Iyogin Regional
Economy Research Center/Iyogin DC Card/Shikoku Alliance Securities/Iyogin Challenge & Smile

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐ 13 ‐

Business Strategies _ Corporate Related I
Help customers to solve issues for their future vision in view of external environment changes and life in theage of COVID-19 and the post COVID-19

Conducting Consulting Sales Activities

Sharing of Management Issues and Optimal Offering ofValue through Business Feasibility Assessment

Start of Business Restructuring Subsidy Support■ Help customers to solve management issues by using the “Mirai Support Sheet” and the“business feasibility assessment investigation committee”(Hundreds ofMillions of Yen)

(Number)■ Dealt with a total of 264 cases since the start of the first public offering for participants in
March 2021 to the third public offering, and support creation of new businesses forcustomers working on business restructuring

Total average loan balance

Number of supports provided

Number of Mirai Support Sheet prepared

Total

Number of business feasibility
assessment investigation committee
heldMarch 2017

March 2018

March 2019

March 2020

March 2021 September 2021

First Application

Second Application

Third Application

Staffing Business

M&As and Business Succession■ A total of 586 inquiries including 120 contracts since the service started in April 2020
■ Started job-seeking business (career advisor and recruiting advisor) in October 2021 andfocused on promoting the utilization of part-time human resources as well

■ Although M&A has not reached the plan due to the impact of the COVID-19, businesssuccession has progressed as planned, with increased inheritance support for the wealthy.

(Number)(Number)Business succession

Number of new inquiries
Number of contracts

First half of Fiscal 2020

Second half of Fiscal 2020

First half of Fiscal 2021

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Second half of Fiscal
2021 (Expected)

Fiscal 2020

First half of
Fiscal 2021

Fiscal 2021 (Plan)

Fiscal 2022 (Plan)

Fiscal 2023 (Plan)‐ 14 ‐

Business Strategies _ Corporate Related II
Expansion of Fee Businesses through Enhanced Consulting Functions
Achievement rate against the annual plan in the first half of fiscal 2021 was 42%, due to the prolonged impact of the COVID-19 pandemic■ Aiming to achieve the plan by enhancing the consulting
functions in order to quickly respond to changes in theenvironment surrounding customers, such as the COVID19 and climate change countermeasures.

[Actual results and plans for consulting revenue](Millions of Yen)
OthersBusiness succession/M&A

Corporate life insurance

Private placement bonds

Business matching

Syndicated loans, etc.

Improvement of business feasibility
assessment
M&A and business succession
Achievement
rate

Staffing business
Diversification and improvement offinance schemes
Business matching and support ofoverseas development
ICT, digitalization, manufacturer
support, etc.
Fiscal 2020 Results

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

September 2021
(mid-year results)

Fiscal 2021 Plan

Fiscal 2022 Plan

Fiscal 2023 Plan

‐ 15 ‐

Business Strategies _ Personal Related I"DHD Service"—Aiming to Be a True “AGENT" That Closely Supports the Customer’s Life—

Enroll university

Start a job

Card loan

House purchasing plan with a smartphone

Get married

Car loan

Have a baby

A bank on your palm

Insurance

Asset management Housing loan

Simulation tool that allows customers to chart various future plans(Released October 2021)■ About 60% of all the housing loans has shifted to
HOME

HOME
Paper-based
application(as of September 2021)■Required documents reduced by half (decreasing
customer burden + BPR)
■Promotion of "HOME HOUSE BUILDER”→ No. of contracts as of September 30, 2021: 151■ Life plan simulation→ Approach a wide range of customers and elicit
needs■ Guide to face-to-face service (consultation counter)according to the needs of the customers■Released June 2021
■Important channels equal to branches■Banking procedures are possible via
video chat■Check balances and asset transitions on
a graph* Functions will be improvedin the future with a view tocollaboration between
different industries.

New card loan service that issues notifications on insufficient amount■ The number of app downloads is steadily increasing
50,000(Released October
2021)

Iyo Bank Visa Debit
Providing safe and secure cashless payment services■ Immediate payment → Can be used like a walletor cash■ Easily check usage details with the "AGENT" app■ People at 12 or older can apply■ Supports Visa touch payment

40,00030,00020,00010,00002020

September
2021/92021■ UI/UX improvement→ Decrease in withdrawal, improvement in contract rate
■Function to expand a credit limit→ Approximately 15% of users increased their credit limit

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‐ 16 ‐

Business Strategies _ Personal Related II
Support “Increasing and Saving" Needs by the Entire Group■Support customers’ asset formation according to issues and needs while staying close to their life events

Change in Group Assets in Custody Balance(Hundreds ofMillions of Yen)

Investment trustand saving trust

The Bank
Shikoku Alliance Securities

Foreign currency
deposits
Insurance
NISA/iDeCo

March 2019
Results

March 2020
Results

March 2021
Results

September
2021 Results

March 2024
Plan

Cooperation with
Shikoku Alliance
Securities

Respond to Customers’ “Preparing" Needs on All Channels■ Build a system to meet the "preparing" needs of customers through various channels

Level Premium Insurance (Number of Customers and Number of Policies Held)
Number of Customers

Iyogin insurance plaza

Number of Policies Held

Insurance consultants

March 2019
Results

March 2020
Results

March 2021
Results

September
2021 Results

March 2024
Plan

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Online insurance
consultation

Creating a System That Meets the Needs of “Bequeathing” and “Preserving”■The Bank established the "wealth advisors" at the headquarters as a one-stop
consultation service from measures before death to post-inheritance support, in order tomeet the growing needs for inheritance, care, and dementia.

Consulting by Wealth Advisors

Understanding needs through inheritance simulation

Support menu for measures before deathTax Measures■Business succession consulting■Real estate incorporation■Single premium insurance (gift before deathand earmarked funds for taxes)

One-stop service for all
measures to meet theneeds for customers(Number)[Number of customers of trust-related contracts]

Asset Management/Estate Division■Family trust■Magokoro (Heartfelt) Letter■Testamentary trust■Will writing support

Support menu after inheritance occurs

Declaration/Estate Management■ Inheritance tax filing support⇒Introduction of affiliated tax accountants■ Estate management (property investigationand estate division consultation)

Fiscal 2018
Results

Fiscal 2019
Results

Fiscal 2020
Results

First half offiscal 2021
Results

Fiscal 2023
Plan

‐ 17 ‐

Business Strategies _ Ship Related I
The Role That the Bank Should Play as a Member of the Maritime Cluster
Ocean Transport and Shipbuilding ⇒ Important Local Industries■ Number of ocean-going vessels owned by domestic
ship owners (as of September 2020)■ Completion of new ships nationwide (2019)

Ehime
Prefecture
32.7%(1,199 ships)

Other than
Ehime
Prefecture
67.3%

Other than
Ehime
Prefecture
84.1%

No. 1 in Japan

Ehime Prefecture
15.9%(2,580 thousand
gross tons)

No. 1 in Japan

Nationwide total of 3,663 ships(including operators)

Completion of new ships nationwide
16.22 million gross tons

Solutions Provided by the Bank
Improvement in Risk Consulting
Capabilities Concerning the Shipbuilding
and Ocean Transport Industries
Deepening into Bank-wide efforts for more
appropriate business feasibility assessments of themaritime industry

Understanding the industry and advancing efforts
to solve problems through wide-ranging
cooperation with maritime clusters centered on
Tokyo and Imabari

Provision of Diverse Funding Sources

Enrichment in Activities Connecting
Domestic and Overseas Maritime
Industries

For high-priced ships, implementing syndicatedloans based on the framework of the TSUBASA
Alliance, etc.

(Note) Iyogin Regional Economy Research Center, Inc. (IRC) estimates; the ranking in Japan excludes operators

Environment Surrounding Ship Owners: Situations Have Changed Significantly■Cost of producing new ships is rising due to steel price increases, etc.
Due to rising global demand for steel materials, shipbuilding planks are on an increasing price trend. The
cost of other related materials and equipment has also risen, so the cost of producing new ships has risen
sharply. Making investment decisions in the ship owner business is becoming difficult.

■Little time to spare on environmental initiatives
In the international shipping sector, a goal of reducing total GHG emissions by 50% by 2050 was adopted.
Investment in new fuel-compatible ships, etc. will be necessary.

[“Strategy on the reduction of GHG emissions” by IMO]
2008
Base year ofemissions(Note) IMO: International
Maritime Organization(Note) GHG: Greenhouse Gas

2023

2030 Target

40% efficiency
improvement

2050 Target
50% reduction in
total emissions

Long-term Target up to
2100
GHG zeroemissions

New short-term measures (regulating existing ships)
will start in 2023 to achieve the 2030 target

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Improvement in Research and Analysis
Capabilities Concerning the Maritime
Industry in General

Aiming to provide new value unique to the Bankfor business opportunities such as chartering andselling ships

Specific Efforts and Examples
Efforts for Improving Risk Consulting Capabilities concerning the Shipbuilding and Ocean Transport Industries■ Tokyo Desk → Interview with a wide range of companies and organizations, such as operators in Tokyo,
shipbuilding yards, marine equipment manufacturers, ship management companies, brokers, andpublic institutions, and return the latest information to the local community■Contributing to solutions to customer issues and creating new business opportunities, such as byproactively providing data for market position analysis and evaluating projects based on the Bank’s
data

Provision of Diverse Funding Sources■ Initiatives for Sustainability Linked Loans (for overseas shipping company H)■ Initiatives for Transition Loans (for Mitsui O.S.K. Lines)■ Composition of syndicated loans for domestic ship owners‐ 18 ‐

Business Strategies _ Ship Related II
Loan Balance for the Maritime Industry¥990.0 billion✓ Continue to support optimal investment for customers(Hundreds ofMillions of Yen)

Status of Balance Changes by Segment
For Domestic and Overseas Ocean Transport■ Ship sales become more active due to resumption of business negotiations andrecovery of dry bulk and container ship market conditions■ Balance decreased due to increase in advance repayment■ Placing orders remain difficult due to soaring cost of producing new ships[Loan balance for the maritime industry]
For other maritime industries and overseas
For domestic and overseas ocean transport(Hundreds ofMillions of Yen)

[Breakdown of changes in balance for domestic and overseas ocean transport in the first half of fiscal 2021](386)* Rising used ship prices have a significant impact on the advance
repayment due to ship selling activities
Example: Price of a used large iron ore carrier (Capesize bulker)
For a 10 year old ship, early 2021
→ end of September 2021
US$21 million
US$35 million (+66.7%)

7,303

(227)

7,091
Compared toMarch 2021
(212)

March 31, 2021

New transactions

Scheduledpayment

Advancerepayment

Impact of foreignexchange rates

September 30,
2021

For Other Maritime Industries■ Loans increased mainly due to COVID-19 loans for shipbuilding yards andmarine equipment, and interest-free loans from The Nippon Foundation (funds
for strengthening shipbuilding-related business foundations)

For Overseas Offices
March 2019
Results

September March 20202019 Results
Results

September2020 Results

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

March 2021 September
Results2021 Results■ Stable growth despite restrictions on sales activities amid the COVID-19 pandemic‐ 19 ‐

Business Strategies _ Market Investment I
Investment Policy by Risk Category(Risk category)(Direction)

Yen-denominatedbonds

Foreign bonds(with forex
hedges)NotchangeForeign bonds
Not(without forexchangehedges)Domestic andoverseas stocks
Decrease(including
investment trust)
Not
Alternatives, etc.
changeSecurities Performance(Investment policy)◎Keep the balance as a bond including foreign bonds (withforex hedges) as assets inversely correlated with stocks.
◎For foreign bonds (with forex hedges), the balance is
temporarily shrunk in anticipation of rising interest rates. In
the future, the balance is planned to be restored byembracing the rise in interest rates.
◎Adjust the balance and implement strategic re-balancing
according to the situation while keeping a certain amount tosecure stable profit from carry trading.
◎Sell off stocks held for strategic purposes if the necessity ofholding is not recognized. In addition, purchase stocks held
solely for investment purposes of which growth is expectedin the medium- to long-term view.
◎Consider investment to secure stable carrying and portfolio
diversification.

(Hundreds ofMillions of Yen)

Balance of Securities at Market Value by Risk Category(Hundreds ofMillions of Yen)

Alternatives, etc.

Domestic and overseas stocks(including investment trust)

Foreign bonds(without forex hedges)

Foreign bonds(with forex hedges)(Hundreds ofMillions of Yen)

Realized profit/loss (= Interest and dividend income + gain (loss) related to securities)
Total profit/loss (= Periodic profit/loss + change in gain/loss on evaluation)

March 2020

March 2021

September 2021

Total Yield(Domestic
currency yield)(Foreign
currency yield)

Total for last 10 years(right axis)*For March 2022,
amounts recorded only
for the first half

Portfolio Risk Sensitivity and Duration■Portfolio risk sensitivity (As of September 30, 2021)

Yen-denominatedbonds◎Yen-denominated bond portfolio

10BPV¥2.8 billion◎Foreign bond portfolio (with hedges)

10BPV¥2.6 billion◎Foreign bond portfolio (without hedges)

10BPV¥2.4 billion / Exchange portfolio exchange ¥10V ¥26.3 billion◎Stock portfolio Nikkei Stock Average¥1,000V¥10.7 billion■Duration
3,350

10 years(Of which, JGBs)

8 years
6 years
4 years
2 years
0 years
March 2022
March 2020
March 2021
September 2021
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved. (Expected)

March 2024
(Expected)

Yen-denominatedbonds

March 2019

Foreign bonds (with forex hedges)

March 2020

March 2021

September 2021

March 2024 (Plan)‐ 20 ‐

Business Strategies _ Market Investment II
Loan Balance Plan [Financial Market Business Office]Status of Foreign Currency Investment and Procurement [September 30, 2021](Hundreds ofMillions of Yen)

<Loans + Market Investment (Securities) >Year-end balance

Mainly assets with high liquidity

Loans

Investment

Securities, etc.

Mainly assets with low liquidity

Procurement
March 2020

March 2021

September 2021

Short-term
procurement Repo procurement

March 2024 (Plan)
Flexibly utilize foreign currency procurement methods responding tomarket conditions

Portfolio by Region and Industry [Financial Market Business Office]
1.9%
2.9%

Long-term
procurement

Deposits, etc.

0.8%
5.5%

1.1%
2.7%

<Only Loans>
Short-term procurement is conducted for substantial short-term loans

10.6%

Investment

11.0%
12.4%

57.3%

11.4%

14.8%

10.9%

Loans

Loans with multicurrency terms
Stability gap is positive(excessive investment)

56.7%
Procurement

Deposits, etc.

Long-term
procurement

Liquidity gap is negative(excessive procurement)

Commitment line

Cash flow risk is guaranteed with commitment lines■Japan■North America ■Asia/Oceania■Europe ■Middle East
■Latin America■Electricity and gas ■Manufacturing ■Transportation■Various services■Finance■Wholesale/retail ■Construction■OtherCopyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

(*) Stability gap: Loans, etc. - (Deposits, etc. + Long-term procurement)(*) Liquidity gap: Loans, etc. - (Deposits, etc. + Long-term procurement + Commitment
line)‐ 21 ‐

Cross-Sectional Efforts Supporting Business Strategies _ BPR Strategy I
Digitization and Simplification of Bank Branch Administrative Work"AGENT" Tablet
Approximately 40% of bank branch administrative work is digitized as aresult of eliminating the need for data entry and seals

Bank Branch“AGENT for Business”

Goals for the Future (Fiscal 2023)

Satto Madoguchi (Quick Counter)*Minimization of cash handling operations through connection between“Satto (Quick) ATM” installed at the counter and terminals at Bank
Branches“HOME” “SAFETY”

Minimize "administrative work" andshift to a place where “issues are solved” from aplace “mainly for administrative tasks"

New digital service for home loan and card loan/complete via
the app, no need to visit a bank branch

Expanding the Area of Headquarters-centralized Operations

Reduction of administrative work on both sides by creating slips
on the Web and QR coding“CUBE” (management system of property in custody)
Managing electronically a series of transfer of property incustody generated in sales activities, etc.

Electronic contracting service for business loans
Entering into a business loan contract on the Web with anelectronic signature
Trial Operation of Headquarters Operation Support Center

Headquarters

Cashless Processing

Trial start from August 2021
Expense payment

Consolidate general affairs
operations in the headquarters andshift to planning operations“Operation Support Center” “Loan Operation Support
Center”
Gradually expanding the operations handledMailmanagement

Headquarters Operation
Support Center
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Number of staffs reduced: 500⇒ Downsizing to 800 staff members

Bank branch administrative staff(in charge of loans)(Compared to March 2020)

Cash management business (outsourcing of in-store ATMs,
open cashiers, etc.)⇒ Downsizing to 350 staff members

Improvement of Operational Efficiency at Headquarters Using RPA, etc.

Effect of headquarters workload
reduction (annual)

Seek project opportunities/identify feasibility(Compared to December 2017)

Verify need/digitize business flow

Elimination of operation

Centralize(Compared to March 2018)

Number of staffs reduced: 60

Cooperation with group company (IBS)

Utilize RPA (automation)
Stationery
management

Bank branch administrative staff(in charge of operations)

Reviewing procedures

Automation■ Thorough utilization of ICT technologies such as groupware and RPA■ Strengthening business infrastructure such as electronic approval system
and web conferencing

Number of hours reduced:
200 thousand hours/year* Volume of operation: down 8%* Personnel conversion:
approx. 100 people‐ 22 ‐

Cross-Sectional Efforts Supporting Business Strategies _ BPR Strategy II
Bank Branch Administrative Staff (in charge of Operations)

March
2019

March
2020

March
2021

September
2021

March
2024

Amount ofadministrative work
Number ofadministrative staff

Analysis of the amountof administrative work atbank branches
BPR guidance by theguidance team

Minimize back office work
Reform the counterreception system

March
2020

Hours of Headquarters Workload Reduction[as of September 2021]
125 Thousand Hours/Year Reduction
200 thousand
hours/year

March
2018

March
2019

March
2020

March
2021

September
2021

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

March
2024

March
2021

September
2021

March
2024

Separate "administrative
work" and "decision-making"“Administrative work”
centralized at headquarters

Shift surplus humanresources to "decisionmaking work"

Horizontal Expansion to Group Companies Started in Fiscal 2021
Furthermore, the BPR measures that the Bank has been working on so far are expandedhorizontally to Group Companies

Implemented a total of
535 efficiency measures

125 thousand
hours/year

Minus 50 Administrative Staff
Amount of administrative work (thousand seconds)

Number of administrative staff

Amount ofadministrative work
Number ofadministrative staff[as of September 2021]

Number of administrative staff

Amount of administrative work (thousand seconds)

Minus 343 Administrative Staff[as of September 2021]

March
2018

Bank Branch Administrative Staff (in charge of Loans)

Methods

Number

RPA

132

BPR

403

Total

535

Group
Company

Elimination of excessive work
Promoting paperless and digitalization

Minimize administrative work and increase manpowerthat can be invested in "problem solving" and"planning"Group
Company

The Bank

Aiming to increase productivity of theentire Group‐ 23 ‐

Business Strategy and Plan for Realizing the Long-Term Vision✓ Toward achieving a long-term vision of a “corporate group continuing to create and provide new value,” the Bank will work to further deepen and evolve the DHD model centered on fivebusiness strategies and four plans. By doing so, we will strive to strengthen relationships of trust with local communities and customers, and work to improve sustainability as a corporategroup.

Plan

Business Strategies

Achieving the long-term vision of a “corporate group continuing to create and provide new value”

Medium-term view (3 years)
Corporate related
strategies

Personal related
strategies

Market investment
strategies

Ship related strategies

BPR strategies

Plan for IT

Plan for branches

Plan for HR
development

Plan for humanresources

To be worked on under thisthree-year Medium-Term
Management Plan and developed
according to future changes inenvironments

Responding to issues from a long-term
perspective with an eye on adapting tochanges in the environmentLong-term view (7 to 10 years)

Iyo Bank Group
Efforts by the Group as a whole

Iyogin Leasing/Iyogin Computer Service/The Iyogin Credit Guaranty/The Iyogin Business Service/Iyogin Capital/Iyogin Regional
Economy Research Center/Iyogin DC Card/Shikoku Alliance Securities/Iyogin Challenge & Smile

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐ 24 ‐

Cross-Sectional Efforts Supporting Business Strategies _ IT Plan
Efforts for Optimization of IT Investment

Development and Improvement of Data Utilization System■ Strengthening data management<Current situation>

Streamline a mechanism for data collection, storage, and collaboration, including theconstruction of a data warehouse■ Completed participation in Collective MCIF Center to further strengthen data analysis and utilization<Direction to aim for in the future>

IT costs are on the risedue to strategic
investment← Investment limit

Collective MCIF Center (Participation of 10 regional banks)

Collective MCIF System
Data utilization

Data

Data analysis
environment

Knowledge Lab

Strategic

Employees
dispatched from eachbankAnalysis and model
development experts■Rule setting such aspriority■Strategically consider
budgetary measures

Bank A Bank B

Classify investment costs into Basestrategic investment and base

Bank C Bank D

Reduction of system costby shared
use/development

Quality and quantity ofdata that cannot be
obtained independently

Human resource development through joint analysis andthe continuous presence and support of experts

from fiscal 2021 onward■ Data utilization in the marketing area

Issues to be addressed (1)Expanding the "type" and "quality" of data utilized such as digital and open data
Expanding "quality" and use cases by implementing the PDCA cycle for analysis and utilization■ Appropriate control ofincreasing IT costs

Dataset (a collection of data organized in a certain format)

Number of events

Number of datasets

Event (marketing scenario designed and developed based on data)

At the time of
implementation

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

September September
2021
2020

■Invested base cost
→ Areas to be reduced

Improvement in Long-term Investment Forecasts■Visualize the current state of IT costs from the necessary
perspectives such as system and item, and refine longterm IT cost forecasts

Issues to be addressed (2)Establishment and Review of IT Investment Rules■ Optimization of bloating IT
assets→ Reduction of base cost
→ Securing room for strategic
investment■Develop criteria for IT asset renewal and disposal (IT asset
evaluation trial)■ IT investment based on overall
optimization

Evaluate the business value of existing IT assets anddesign and implement standards for disposing lowvalue IT assets■Prioritize IT investment and development projects
Review planning process‐ 25 ‐

Cross-Sectional Efforts Supporting Business Strategies _ Branch Plan
Style of New Branches (Real Channels/Digital Channels/Connecting People)
Review the locations and functions of branches (real channels) according
to regional characteristics: Bank branches

Review of Branches and ATM Locations

Iyogin SMART: Branches for specific purposes■ Sorting out excessive branches while
maintaining points of contact with customers
150

Diversify touch points with new channels■Newly establishing micro branches for the
purpose of maintaining contact points withlocal customers* New form of branches where businessdays, business hours, and operations
handled are limited: Ultracompact branches

148
142

145
140

134

135

132

130

AGENT app

130

125
120

: Personsserving as a bankMarch 2019 March 2020 March 2021 September March 2022
2021
Plan

■ Reducing the number of installed ATMs by utilizing common
use and no charge alliance against a background of increases
in cashless settlements and ATMs in convenience stores
750
650
550

650

635
530

533

531

450
March 2019 March 2020 March 2021 September March 2022
2021
Plan

Review of Branch Functions■ Introduction of the Group Head system
Core branches (full-service banking): 28
Linked branches (branches specialized in individualfunctions/over-the-counter services): 57■ Shift to labor-saving branches
Branches located in government offices: 5 branches

Digitalchannel* The figure shows examples of branch locations, etc. and not actual locations.

■Released AGENT app that can provide
the same customer experience as at acounter reception* A new banking app that utilizes thevideo chat function* Realization of Branch in Hand

Utilizing the strengths of branches (real channels), enhance the ability to provide value that only humans’ "face-to-face" can provide→ Daily use transactions are mainly conducted by digital channels (apps), while value-added operations and problem-solving that only humans can provide are mainly implemented by realchannels (branches).

Introduction of Next-generation Branches

Review of Business Hours of Branches■ Shift to Next-generation Branches withnew solutions such as Satto Madoguchi(Quick Counter) and AGENT system■ Shortening business hours
Adoption of lunch break: 8 branches■ Extension of consultation service hours at 33

120

90

95
70
45

91

101

65
43

20

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

March
March
March September
March2019/32020/32021/32021/9 2022/3
2019
2020
2021
2021
2022
計画
Plan

branches in Ehime Prefecture for the purpose of"improving service level at counter reception"
Bank counter: Weekdays 9:00 to 15:00
Consultation counter: Weekdays 9:00 to 17:00

LIFE PALETTE Consultation Service■Established a consultation counter for life plans
created with life plan simulation tool "LIFE
PALETTE" in "Lone Plaza Matsuyama Branch"* In principle,
reservation required* Using the extended time zone provides
consultation in a calm environment with lesswaiting time‐ 26 ‐

Cross-Sectional Efforts Supporting Business Strategies _ Personnel Development Plan
Improving Base Skills

Improving Special Skills

Shift Development Policies / Generalist → Personnel with an Area of Expertise■ Review of personnel systemBaseskillsSupportRisk management

Planning

Technology

MarketShip

Individual

SpecialskillsCorporation

Classify specialized skills into eight career fields for the purpose of business specialization and improvement

Basic knowledge and skills/Finance and IT
literacy/Common sense and morals

Establishment of an Environment Which
Facilitates Autonomous Learning■ Creating an environment where employees canlearn at any time, anywhere

Career fields creatingstrong areas todevelop areas of
specialty
Responses to Diversifying Careers

Appointment
systemIntroduced educationand training apps for
all new employees

Initialimplementation

Expanded to
224 contents

2016

As of September
2021

Expansion of online
learning tools

・Dispatching employees for corporate
academy training→ Training program for young
employees
・ Dispatching employees on
assignments outside the Group→ Acquisition of external expertise

Change to open application
system (15 courses)

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

□ MBA□ Small and Medium Enterprise Management
Consultant□ 1st-grade Certified Skilled Professional of
Financial Planning, CFP□ Securities analyst …………. and more
Continuation and expansion of qualification acquisition
incentive system→ Target: 97 qualifications (incentive: up to ¥1 million)

Market・ Short-term dispatch training in the Funds
Operation & Securities Division
・Dispatching employees for corporate
academy training→ Acquisition of market knowledge

Technology

Planning (Digital Business)・ Attending cloud-related training→ Improving IT-related skills

・ Newly establishing Digital Business
Basic Workshop→ Finding and developing talent・Skill Compass Level 3 or higher→ Improving the skills ofdevelopers■ Introducing training programs by business (field)
open to all employees■ Promotion of challenges to advanced qualifications
Making workshops online
Employees now able to takeshorter classes on demand

Corporation/Individual/Ship/Planning

Personnel Development

Creating and providing
diversified value

Developing personnel in fields for which a
focus is strategically placed and securing
employees with expertise

BPR strategy
Securing employees who become
available through BPR strategies in aplanned way

Developing personnel who can work
actively in their areas‐ 27 ‐

IndexI. Summary of Earnings for the First Half of Fiscal 2021
II. Main Strategies and Progress of Fiscal 2021 Medium-Term
Management Plan
II-1. Major Numerical Targets of Medium-Term Management Plan
II-2. Progress of Business Strategies and Plan

II-3. Status of Efforts for ESG and SDGs
II-4. Profit / Loss Forecasts, Capital Policy, and Start of Considerationof Transition to Holding Company Structure
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐ 28 ‐

Status of Efforts for ESG/SDGs I (Environmental Protection: Response to the TCFD Recommendations)
GovernanceSupervision

Risk Management
The Board of Directors

Investment and loan policy development■ Supervision of important environmental and climate change matters
Reporting

Supervision<Executive Committee> Management Planning Council■ Deliberate the content and information disclosures of climate change
initiatives
Discussion andReportingInstruction

Execution

Division in charge of climate change response■ Investigate and discuss matters related to information disclosure regarding theenvironment and climate change and corporate activities for decarbonization andformulate and promote measures for those matters

Policies oninvestment andloans that areenvironmentallyand sociallyfriendly■ Identify sectors that are likely to contribute to negativeenvironmental and social impacts and develop investment andloan policies

Status of response■To reduce or avoid risks, check the customer's status of response
and make transaction decisions based on the characteristics ofeach sector

Benchmark and Targets
CO2 emission reduction target ➡

50% reduction by fiscal 2030

(Unit: t-CO2)
CO2 emissions(Compared to fiscal 2013)

Reduction rate

Strategies
Promotion of ESG/SDGs finance
Opportunity■ April 2021: Released SLL, transition loan, etc.
→ Executed 5 cases/approx. ¥7.1 billion by September 2021

Selection of sectors subject to migration risk analysis
Risk■ For migration risk, risk importance assessment is conducted on the two cores ofrisk assessment (impact) by sector and the Bank’s portfolio composition ratio(credit amount)■ Select "Electricity/Gas" as the sector to be analyzed based on the risk importanceassessment results

Fiscal 2013

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2030

(Note) CO2 emissions are the total of Scope1 and Scope2 of the Bank
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐ 29 ‐

Status of Efforts for ESG/SDGs II (Local Economy and Community)
Revitalization of Local Economy by Business Foundation Support

Department
in charge:
Number of Business Foundation Support
Regional Development
March 2021

September
2021

255

370

200

Of which, start-up loans(with/without Credit Guarantee
Association)

72

303

106

Of which, referrals to government-affiliatedfinancial institutions and start-up support
organizations

50

17

5

Of which, venture companies registeredfor grants or investments

25

24

8

*Businesses within 3 years of establishment are counted■ Continuing from last year, due to the impact of the COVID-19, the Bank supports theoperationalization of customers during the start-up period, centering on loans

Number of Business Foundation Support■ "7th Iyogin Business Plan Contest" was held in July this year
■ Eight award winners were selected from a total of 68 applications[Number by category]

Crowdfunding

March 2020

Business foundation planning support

Revitalization of Local Economy by Crowdfunding

Number (Cumulative)

Businessfoundation
16

Total
57 cases

New products
and services
17
Second half First half of Second half First half of Second half First half ofof 20182019of 20192020
of 20202021■ The Bank subsidizes part of the fees paid by customers to crowdfunding companies tosupport projects on starting business and regional revitalization

Cooperation with ANA Group
Concluded "Business Alliance Agreement on Promotion of Regional Revitalization"■ Outline of the agreement

Best Award

Optieum Biotechnologies Inc.
■ Venture company from Ehime University■ Iyogin Capital makes an investment* Invested in September 2021

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Regional
revitalization
24✓ Matters relating to development of sales channel of local products✓ Matters relating to discovery, support, and marketing of new business✓ Matters relating to promotion of advancement support such as
securing of human resources and development of sales channel inprimary industry

First in regional banks nationwide

ANA Akindo Co., Ltd.
* Responsible for regional
revitalization work in the
ANA Group

Iyo Bank‐ 30 ‐

Status of Efforts for ESG/SDGs III (Financial and Information Services)
Project Finance

Other Initiatives■Started handling "ESG/SDGs Finance" and “green bonds" in April 2021
→ Supporting customers’ efforts toward ESG/SDGs management, which is ofincreasing social interest■Iyogin SDGs Advisory Service
Answeringquestionnaires

ESG/SDGs Finance and Green Bonds
Green loans

Transition loans

Sustainability linked loans

Green bonds

Providing result
reports“SDGs Declaration”
preparation support

Publicity support[Number of service provided]■Customer's own "SDGs Declaration"■Generating publicity by press release→ Number of support service
provided: Approximately 140 cases(as of September 30, 2021)

Financial support for customers’ ESG/SDGs management sophistication[Project finance executed for renewable energy]

Fiscal 2020

Solar power generation

15

Biomass generation

4

Fiscal 2021 (First half)■ ESG/SDGs Related Private Placement Bonds(Millions of Yen)

[Finance executed to achieve a sustainable society]
Sustainability linked loans

2[Other environmental finance executed]
Loans relating to the interest subsidy business implemented
by the Ministry of the Environment

9“Kaisha-no-Mirai”

Green bonds

1“Chiiki no Mirai”“Manabiya”
Environment

Arrangement of syndicated loans for investment funds forgreen bonds

1

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Fiscal 2018

Fiscal 2019

Fiscal 2020

First half of fiscal 2021

‐ 31 ‐

Status of Efforts for ESG/SDGs IV (Diversity and Work Style Reforms)✓ Aiming to improve productivity and work engagement by employees through continuous efforts throughout the Bank such as work style reforms

Diversity

Health Management

Female Manager Ratio/Average Years of Service■ Female manager ratio and average
years of service → Increasing steadily
year after year

“L Star” Program (Three Stars)"Well-being Ehime"■ Promotion of women’s advancement■Participated as an initial member in the first regional organization in Japan that aims topromote health management in the region in collaboration with companies, local
governments, schools, etc. in Ehime Prefecture→ Awarded three stars in the “L Star”
program

Wearable Device "fitbit"

16.3%
14.9%

■ Population approach (self-directed health maintenance andpromotion) that raises employee health awareness andpromotes self-directed improvement of lifestyle habits including
exercise and eating habits→ Free rental of wearable devices to all applicants

13.7%
10 years and
11 months

March 201911 years and12 years and8 months

4 months

March 2020

March 2021

Side Business System

Work Style Reforms
Introduction of Work-from-home System■ About 30 employees carry out side businesses ■ Introduced a work-from-home system for→ Help employees to gain a wide range
employees who wish to work from homeof knowledge and skills
from April 2021
Personal computer forworking from home

■Change in overtime work under Labor Standards Act
6.6
hours

3.2
hours

4.2
hours

4.6
hours

January to
December 2018

January to
December 2019

January to
December 2020

January to
September 2021

■Change in paid leave utilization rate
<Implementation examples>■Creator of video production, etc.
■Soccer referee■Website development…… and more
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

■ Overtime work increased due to
COVID-19-related responses

At home

Bank

65.2%

67.1%

69.6%

January to
December 2018

January to
December 2019

January to
December 2020

■Paid leave utilization rate is
steadily increasing‐ 32 ‐

Status of Efforts for ESG/SDGs V (Social Contribution Activities)
Environmental Protection

Iyo Bank
Evergreen Forest
Established in 2008 (13th year)
Under the "Agreement on Forest Creation Activities" which
was entered into with Ehime Prefecture, Ozu City andForest Fund of Ehime, we are making efforts to foster
forests in four locations in Ehime Prefecture.

Contribution to Local Communities

Iyo Bank Environment Foundation“Evergreen” (public trust)
Established in 2008 (13th year)
Applications are invited once every year
from April to August

We support
organizations andindividuals who are
engaging inenvironmental
preservation activities in
Ehime. To this day, we
granted a total of ¥60
million to 165 recipients.

Iyo Bank Evergreen Forest (Matsuyama City)

Fiscal 2020 ”Tada Eco-group Tanpopo”

Diversity

Iyogin Challenge & Smile Co., Ltd. has been established as a
special subsidiary company with the purpose of promotion of
employment of persons with disabilities. It engages in various
initiatives aiming to create a workplace where they can work
actively with local communities, including development ofgoods, sales of goods at rest stops, event venues, etc. incooperation with local companies, and succession of
traditional industries.

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Established in 1992 (30th year)
Applications are invited twice a year from June toJuly and from December to January

We grant part of funds for
activities of parties whichcarry out “grassroots”
cultural activities in Ehimeand granted a total of ¥242
million to 1,251
organizations. In addition,"special applications"targeting organizations
damaged by the heavy rainin July 2018 are also invited.

SDGs Card Game

Donation of social welfare
equipment to social welfare
institutions, etc.

Donation of subsidies forbuying books to highschools, etc.

Workplaceexperience
Iyogin is
supportingchildren

Established in 2021 (1st year)

Iyogin Regional
Economy ResearchCenter is conducting"2030 SDGs Card Game"
training for local
companies andorganizations. Anyone
can easily learn "whySDGs are needed" and"how SDGs are relevant
to us" while experiencing
in a game format.

Employment subsidies forchildren living in child welfare
institutions, etc.

Iyo Bank Social Welfare Fund
(Public Interest Incorporated Foundation)

58th recipient “Oshibune
Conservation Society”

Started in 2007 (15th year)

Established in 1976 (46th year)
We support improvement in social welfare and humanresource development for the next generation in Ehime

Granting scholarships tohigh school students insingle or no parent families

Iyogin Financial
Education Class

Iyogin Challenge & Smile
Established in 2018 (3rd year)

Iyo Bank Regional Cultural
Activity Assistance Program

Iyo Bank Social Welfare
Fund (Public Interest
Incorporated Foundation)

Seminars for kids
Seminars for learning aboutbank mechanisms andhealthy financial literacy

Programs for work experience in abank and a study tour in a branch

Iyogin Junior
Mirai Juku
Lesson program in line withschool curriculum guidelines
and financial literacy map‐ 33 ‐

IndexI. Summary of Earnings for the First Half of Fiscal 2021
II. Main Strategies and Progress of Fiscal 2021 Medium-Term
Management Plan
II-1. Major Numerical Targets of Medium-Term Management Plan
II-2. Progress of Business Strategies and Plan

II-3. Status of Efforts for ESG and SDGs
II-4. Profit / Loss Forecasts, Capital Policy, and Start of Considerationof Transition to Holding Company Structure
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐ 34 ‐

Profit / Loss Forecasts for Fiscal 2021
✓ Core business gross profit to remain flat due to an increase in non-interest revenue, despite an expected decrease in gain on securities management✓ Net income to record ¥19.5 billion assuming a decrease in credit costs compared to the previous year, when a provision for COVID-19 measures was recorded.
[Nonconsolidated
results (Units: Billions ofyen)]Core business gross profit

Of which, interest anddividend income
Of which, fees andcommissions
Expenses (-)

Fiscal 2020 results
Intermediate
results

Factors Contributing to Increase / Decrease in Core Business Gross Profit(Fiscal 2021 - Fiscal 2020)

Fiscal 2021 forecast
Intermediate
results

YoY

YoY(Note) Differences in yield of domestic currency utilize yield
differences with domestic deposits, etc.
Differences in yield of foreign currency utilize yield
differences with foreign currency funding costs
The number in parentheses for each profit is the actual
profit amount

39.8

80.5

41.8

+2.0

80.5

+0.0

Gain on loan
management(¥47.7 billion)

34.8

71.3

36.8

+2.0

70.0

(1.3)

(0.4)

3.0

6.2

3.2

+0.2

6.5

+0.3

Interest and dividend
income(¥70.0 billion)

Gain on securities
management(¥21.6 billion)

(1.3)

(2.1)

24.8

49.6

24.3

(0.5)

49.0

(0.6)

12.8

25.7

12.9

+0.1

25.5

(0.2)

10.3

21.0

10.2

(0.1)

20.5

(0.5)

Core business net income

14.9

30.9

17.5

+2.6

31.5

+0.6

Credit costs (-)

1.4

12.5

3.5

+2.1

6.0

(6.5)

Gain (loss) related tosecurities

4.9

3.7

3.9

(1.0)

0.0

(3.7)

+0.3

Ordinary income

19.4

23.7

19.7

+0.3

28.0

+4.3

Other
(¥4.0 billion)

Net (intermediate) income

13.6

16.6

14.0

+0.4

19.5

+2.9

+1.0

Of which, personnel
expenses
Of which, nonpersonnel
expenses(Units: Billions of yen)

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Core business grossprofit(¥80.5 billion)

Volume factors +1.2
(Average loan balance up ¥105.6
billion)Yield difference factors (1.6)(Yield difference down 0.03%)
Volume factors (1.1)(Average securities balance
down ¥68.8 billion)
Yield difference factors +2.0
Gain on fund cancellation factors
(3.0)

+0.0

Other
(¥0.6 billion)
Fees andcommissions(¥6.5 billion)+1.2…Increase in interest on deposits with banks,etc.

… Increase in revenue on assets in custody, solution-related fees, etc.

… Increase in gain (loss) on foreign exchange transactions and gain
(loss) on derivatives, etc.

‐ 35 ‐

Capital Policy (Cross-Shareholdings/Dividend Policy)
Cross-Shareholdings

Dividend Trends and Policy■ Basic policy and response status of cross-shareholdings
Basic
policyReduce→ The Board of Directors verifies the rationality of holding atleast once a year

■Planning to increase dividends by ¥2 for the fiscal year ending March 2022 (119thterm), while strengthening the financial position with internal reserves(Yen)

Ordinary
dividend

Policy on holding is set through the evaluation matrix of "investment side" and "policy side” forall stocks held. Shares which are earmarked for divestment are being sold off in stages.
(Hundreds ofMillions of Yen)

Commemorative
dividend[Changes in the book value of cross-shareholdings (listed)]Tier1 ratio*(right axis)

March
2016

March
2017

March
2018

March
2019

March
2020

March
2021

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

March
March
March
2022
2023
2024
(* Tier 1 excludes components ofcomprehensive income)

March
2011

March
2012

March
2013

March
2014

March
2015

March
2016

March
2017

March
2018

March
2019

March
2020

March March 2022
2021
(Plan)‐ 36 ‐Start of Consideration of Transition to Holding Company Structure✓ Iyo Bank resolved at its Board of Directors meeting held in November to start examining the transition to a holding company structure on the assumption that the approval of theGeneral Meeting of Shareholders and the necessary approvals, etc. of the relevant authorities can be obtained.
✓ Aiming to realize the long-term vision by proceeding to examine ways to accelerate group integration to promote and enhance solutions for local communities and customers■Background to consideration of transition to a holding company structure and its purpose

Efforts

Long-Term Vision

Changes in the businessenvironment

・ COVID-19
・ ESG/SDGs
・ Deregulation, etc.

Further
deepening andevolving the
DHD model

Long-Term Vision“Corporate group continuing to create and provide
new value”

Previous 10-year vision

Fiscal 2021
Medium-Term Management Plan

Corporate Credo“Creating a bright and prosperous future for the region” “Offering the best service and being worthy ofpeople’s trust” ”Rendering our best service with gratitude in our hearts”

Strategies

Plan

Corporate related

Further perspectives toward the realizationof the Long-Term Vision

Personal related

Ship relatedMarket investment

HR development

Human resources

Consideration oftransition to aholding company
structure
October 2022 (Plan)

Accelerating group integration bybreaking away from the bankcentered culture
Expansion of business core basedon the revision of the Banking Act
Improvement of group
governance based on expansion ofbusiness core

BPR
IT

Branches■Future consideration schedule for transition to a holding company structure
Second Half of Fiscal 2021
November 2021
Resolved at the Board of Directors meeting to start
examining the transition
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Fiscal 2022
June 2022
General Meeting of Shareholders

Examining transition by October 2022
Start of holding company structure (Plan)‐ 37 ‐

■Future business results contained in this document are based on information available as ofannouncement and assumptions regarding uncertain factors that may affect future businessresults.
■Future business results may differ due to changes in the management environment, etc.

<For inquiries regarding this document> Takeda, General Planning Division, Iyo Bank TEL:089-907-1034/FAX:089-946-9104

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Iyo Bank First Half of
Fiscal 2021 Earnings Briefing(April 1, 2021 – September 30, 2021)

Reference Materials

Iyo Bank
December 3, 2021

Index of Reference Materials

Overview of the Iyo Bank

Pg

Conditions in Loans and Deposits

Pg◎Iyo Bank Profile

2◎Breakdown of Balance of Loans and Deposits at End of Period

12◎Branch Network

3◎Balance and Composition of Loans by Industry

13◎Summary of the Iyo Bank Group

4◎Table of Changes in Borrower Classification

14

Environment Surrounding the Iyo Bank

Pg

Pg

◎Main Industries in Ehime Prefecture

5

Status of Market Investment, Risk Management andDividends◎Manufacturing Industry in Ehime Prefecture

6◎Industrial Structure of the Setouchi Region

7◎Economic Indicators of the Setouchi Region I

8◎Economic Indicators of the Setouchi Region II

9

Status of Ocean Transport-Related Market

Pg◎Shipbuilding Yards in Ehime Prefecture

10◎Outlook of Dry Bulk Market Conditions

11

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

◎Management by Risk Category: Securities Investment◎Balance of Investments by Region and Sector: Financial Market
Business◎Status of Integrated Risk Management

15
16
17

‐1‐

Iyo Bank Profile

Head Office

Matsuyama, Ehime Prefecture

Year of foundation

March 15, 1878 (The 29th National Bank)

Capital¥20,900 million (Total number of issued shares: 323,775 thousand shares)

Number of employees

13 Officers, 2,738 employees (excluding temporary staff)
151 domestic (including 20 branches within branches, 9 sub-branches), 1 overseas (Singapore)

Number of branches
2 overseas representative offices (Shanghai, Hong Kong)
A+: Rating and Investment (R&I)
External credit ratings

A-: Standard & Poor’s (S&P)
AA: Japan Credit Rating Agency (JCR)

Consolidated equity ratio (BIS standards)

14.82%

Consolidated subsidiaries

16 companies

Consolidated employees (excluding temporary staff)

3,115 persons〈As of September 30, 2021〉

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐2‐

Branch Network■Created the No. 1 regional bank in terms of broad regional coverage, in 13 prefectures centered on the Setouchi region■Established a strong operating base by expanding outside of Ehime Prefecture from long ago
Chugoku region:
9 branches

Timing of opening key branches outside of Ehime
1909: Usuki (Oita); 1919: Nigata (currently Kure, Hiroshima);
1947: Takamatsu (Kagawa), Kochi, Oita; 1950: Hiroshima;
1952: Osaka; 1954: Tokyo; 1958: Tokushima;
1963: Kitakyushu (Fukuoka); 1964: Okayama;
1965: Nagoya (Aichi); 1966: Kobe (Hyogo);
1971: Fukuoka; 1979: Tokuyama (Yamaguchi)

Okayama

Number of branches
151 domestic（including 2 Iyogin
SMART branches）（including 20 branches
within branches）
1 overseas

Hyogo

Hiroshima

Yamaguchi

Osaka
KagawaFukuoka

Within Ehime:
119 branches
Oita

Kyushu region:
8 branches

Tokushima
Kochi

Shikoku region, excluding Ehime:
7 branches
11 prefecturesin the Setonaikai region

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Kinki region:
5 branches

Tokai region: 1 branchTokyo region: 2 branches
Overseas: 1 branch
Representative offices: 2 offices‐3‐Summary of the Iyo Bank Group(Units: Millions of Yen)

Consolidated Earnings
SummaryFirst half of
Fiscal 2021

【Consolidated】

Consolidatednonconsolidated
Difference(Note)

63,705

10,283

Ordinary revenue

70,625

6,920

Increase/
Decrease+ 10.9%Ordinary income
Profit attributable to owners ofparent21,172

1,028+ 5.1%

20,144

1,397

14,867870+ 6.2%

13,997865

YoY(Note) The difference between consolidated and nonconsolidated.

List of Iyo Bank Group Companies
Head office and142 branches,
9 sub-branches, and13 consolidated
subsidiaries

Iyo Bank

Banking businessFirst half of
Fiscal 2020

The Iyogin Credit Guaranty Company Limited

Credit guarantee business for housing loans and consumer loans, etc.

The Iyogin Business Service Company Limited

Cash organization and inspection business, maintenance and management business of automatedcash facilities, etc.

Iyogin Capital Company Limited

Investment business for stocks and corporate bonds, etc., management of investment funds, etc.

Iyogin Venture Fund Corporation Limited IV

Investment business to venture firms

Iyogin Venture Fund Corporation Limited V

Investment business to venture firms

Iyogin Venture Fund Corporation Limited VI

Investment business to venture firms

Iyo Evergreen Sixtiary Industrialization Support Fund Investment Business
Limited Partnership

Investment business to agricultural companies

Iyo Evergreen Agriculture Support Fund Investment Business Limited
Partnership II

Investment business to agricultural companies

Iyo Evergreen Business Succession Support Fund Investment Business Limited
Partnership

Iyogin Regional Economy Research Center, Inc.

Credit card business, guarantee business, etc.
Manufacturing business for office supplies, etc.
Lease business, etc.

1 consolidated subsidiary

Iyogin Leasing Company Limited

2 consolidated subsidiaries

Iyogin Computer Service Company Limited
Shikoku Alliance Securities Co., Ltd.
Iyogin-Ehime University Originated Venture Support Fund Investment Business Limited
Partnership
Iyo Evergreen Business Succession Support Fund II Investment Business Limited
Partnership II(As of September 30, 2021)
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Investigation and research business regarding industry, economics, finance, etc.

Iyogin DC Card Co., Ltd.

Other

4 non-equity method affiliates

Investment business to business succession targets

Iyogin Challenge&Smile Co., Ltd.
Leasing business

2 non-consolidated non-equity method
subsidiaries

Investment business to sixtiary industrialization bodies

Iyo Evergreen Agriculture Support Fund Investment Business Limited
Partnership

Consigned information processing business, software development business, etc.
Securities business
Investment business in startup companies originating in Ehime University
Investment business to business succession targets

Iyogin REVIC Investments Co., Ltd.

Investment fund management business

Shikoku Alliance Capital Co., Ltd.

Investment fund management business

Ozu Machidukuri Fund

Investment business to community development business

Shikoku Brand Co., Ltd.

Support business for branding and development of sales channels of regional products‐4‐

Main Industries in Ehime Prefecture■ Industries with top national share concentrated in each region■ Manufactured product shipments from Ehime Prefecture totaled¥4.3 trillion (45% of Shikoku) in 2019

Imabari Region
32.7％（1,199 ships）…Total national share of Ehime Prefecture

Matsuyama Region
The Matsuyama region has companies with large
shares in products such as “small once-throughsteam boilers,” “farm machinery,” and “driedbonito shavings.”

61.5％（¥32.9 billion）

No. 1 in Japan

No. 1 in Japan(Note 2)

(Note 2)

Number of ocean-going vessels owned by domestic shipowners (as of September 2020) (Note 1)
3,663 total vessels in Japan (including operators)

Towels (2019)¥53.6 billion shipped in Japan

Uwajima Region
13.8％（¥66.2 billion）

No. 1 in Japan(Note 2)

Sea culture industry (2019)¥480.2 billion total national
production•(Note 1) Iyogin Regional Economy Research Center, Inc. (IRC) estimates; theranking in Japan excludes operators.
•(Note 2) Ranking of Ehime Prefecture
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Niihama Region
Manufactured product shipments (2019)¥1,644.7 billion
Approx. 38.2% of shipments ofmanufactured products in Ehime
As a corporate town under the Sumitomo
Group, nonferrous metal, chemicals, steel,machinery and equipment are concentrated
particularly in the Niihama region.

Shikokuchuo Region
7.4％（¥570.2 billion）

No. 2 in Japan(Note 2)

Pulp and paper industry (2019)¥7,687.9 billion shipped in Japan

Source: Prepared based on the Ministry of Economy, Trade and Industry’s “Census of Manufacture 2020” (2019 results) and the Ministry of Agriculture,
Forestry and Fisheries’ “total fishery output for 2019.”
Figures for the pulp and paper industry are confirmed figures for 2018 and preliminary figures for 2019.

‐5‐

Manufacturing Industry in Ehime Prefecture■Ehime Prefecture has manufacturing industries distinctive to each region
Others20.1％

Composition of manufactured goods
shipment by city (top five cities)

Production
machinery

22.7％

Transportation
machinery

Coal and oil

4.8％

Food
products

Matsuyama¥440.4 billion

Imabari
61.3％ ¥1,054.0 billion
Others29.9％

Chemicals

12.6％

Fibers 4.3％

20.2％

Food products 2.4％

General-purpose
machinery

General-purpose machinery 1.2％

19.7％

Metals 0.8％

Food products 3.1％

Fibers 3.5％

Electric
machinery

3.0％
Others(Note) The shipment amount of “coaland oil” for Imabari City is aconcealed value for statistical
purposes, thus it is included in“others.”
Source: Prepared by Iyogin Regional
Economy Research Center, Inc. (IRC)
based on the Ministry of Economy,
Trade and Industry’s “Census of
Manufacture 2020” (2019 results).

Others

10.2％
Plastics
Nonferrous
metal

7.5％

6.3％

Nonferrous

Transportation
machinery

Saijo
metal
¥794.7 billion

46.3％

8.2％

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Generalpurpose
machinery

16.8％

Beverages,
tobacco,and feed

Plastics

8.9％

42.3％
Niihama¥850.0 billion

Production
machinery

8.5％

Steel

13.8％

Others 3.3％

Production machinery 3.8％

Chemicals

28.0％

7.3％

Shikokuchuo¥669.1 billion

Pulp, paper, andpaper processing

79.0％

‐6‐

Industrial Structure of the Setouchi Region■ The Setonaikai coastal region has established various industrial structures
Automotive, oil refining, steel
Shipbuilding, oceantransport, oil, towels andgarments
Automotive, shipbuilding, electronics

Okayama
Shipbuilding, textiles
Hiroshima
KagawaElectronics, farm machinery,
chemicals, tourism

ImabariNiihamaMatsuyama Saijo

Shikokuchuo

Citrus, food processing

Paper manufacturing andprocessing

Ozu
Yawatahama
Oita
Steel, automotive, electronics,
tourism

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Chemicals, electronics,
nonferrous metal, generalmachinery

UwajimaCulture fishery‐7‐Economic Indicators of the Setouchi Region I
Total population(Population
estimate)
October 2020
(Persons)
1,335,694

EhimeTotal area
(Geospatial
Information
Authority of Japan)
July 2021

Number of offices(Private sector,
excluding public
sector)2016（ｋ㎡）

Number of employees(Private sector,
excluding public
sector)Prefecture total
production(Nominal)

Prefectural grossproduct growth rate
(Real)

Prefectural income
per capita

2016

Fiscal 2018

Fiscal 2018

Fiscal 2018

(%)
(1.9)

(Thousands of yen)
2,658

5,676

(Offices)
63,310(Persons)
566,761(Billions of yen)
4,988.3

KagawaTokushima
Kochi

951,049
719,704
692,065

1,877
4,147
7,104

46,77435,85335,366429,167
301,688279,196

3,855.1
3,173.3
2,419.0

0.4
1.3
0

3,013
3,092
2,644

Oita
Fukuoka

1,124,597
5,138,891

6,341
4,987

52,973
212,649

483,206
2,236,269

4,614.3
19,808.0

2.8
0.9

2,714
2,885

Yamaguchi
Hiroshima
Okayama

1,342,987
2,801,388
1,889,607

6,113
8,479
7,114

61,385127,057
79,870577,791
1,302,074
820,656

6,374.6
11,713.7
7,805.7

0.7
(0.7)
0.4

3,199
3,109
2,769

Total of the above nine prefectures (A)15,995,982
12.7%

51,83813.7%

715,237
13.4%

6,996,808
12.3%

64,752.0
11.8%

5,469,184
21,465,166

8,401
60,239214,169
929,406

2,203,102
9,199,910

21,177.8
85,929.8

(0.4)

2,968

17.0%

15.9%

17.4%

16.2%

15.7%

126,226,568

377,975

5,340,783

56,872,826

548,367.0

0.3

3,198

(A)/(C)
Hyogo
Total of ten prefectures (B)(B)/(C)
National total (C)Total of ten
prefectures

17.0%
Total population(Population
estimate)(October 2020)

Total of nine
prefectures(excluding Hyogo)

12.7%
Total population(Population
estimate)(October 2020)

Total of ten
prefectures

15.7%
Gross prefectural
product (Nominal)(Fiscal 2018)

Total of nine
prefectures(excluding Hyogo)

11.8%
Gross prefectural
product(Nominal)(Fiscal 2018)

Source: Prepared based on the Statistics Bureau of Japan’s “2020 Population Census (preliminary figures),” the Geospatial Information Authority of Japan’s “Statistical reports on the land area by prefectures andmunicipalities in Japan,” the Ministry of Internal Affairs and Communications’ and Ministry of Economy, Trade and Industry’s “Economic Census,” and Cabinet Office’s “Annual Report on Prefectural Accounts”
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐8‐

Economic Indicators of the Setouchi Region II
Manufactured
product shipments

Annual wholesale
sales amount

Annual retail sales
amountIndustrial production
index(annual average)

Number of new
housing starts

Jobs-to-applicantsratio(annual average)

Overallunemployment rate(annual average)

2019

2016

2016

2019

2020

2020

2020

(Millions of yen)
4,308,818(Millions of yen)
2,511,264(Millions of yen)
1,528,554

2015＝100(Homes)(Times)（％）

KagawaTokushima
Kochi

2,711,583
1,908,126
585,527

2,619,010
904,487
874,256

Oita
Fukuoka

4,298,945
9,912,191

Yamaguchi
Hiroshima
Okayama

Ehime

99.9

8,049

1.33

2.0

1,169,352
757,121753,371

106.5
101.3
99.3

4,747
3,554
3,437

1.42
1.16
1.03

2.2
2.2
2.5

1,344,689
16,970,699

1,235,257
5,864,032

96.1
105.1

6,892
34,464

1.19
1.15

2.0
3.0

6,553,479
9,741,531

1,641,957
9,166,762

1,488,895
3,309,726

107.0
100.7

6,217
16,050

1.27
1.42

1.9
2.4

3,543,971
39,577,095
9.1%

2,093,111
18,199,419
12.5%

101.4

12,103
95,513
11.7%

1.59

2.3

(A)/(C)7,704,136
47,724,336
14.8%

Hyogo
Total of ten prefectures (B)16,263,313
63,987,649

10,219,241
49,796,336

5,726,476
23,925,895

104.1

30,884
126,397

1.04

2.7

19.8%

11.4%

16.5%

322,533,418

436,522,525

145,103,822

1.18

2.8

Total of the above nine prefectures (A)(B)/(C)
National total (C)Total of ten
prefectures
19.8%

Manufactured
product
shipments(2019)

Total of nine
prefectures(excluding Hyogo)
14.8%

Manufactured
product
shipments(2019)

15.5%
101.1

815,340

Total of ten
prefectures
15.5%

Number of new
housing starts(2020)

Total of nine
prefectures(excluding Hyogo)
11.7%

Number of new
housing starts(2020)

Source: Prepared based on the Ministry of Economy, Trade and Industry’s “Census of Manufacture”, the Ministry of Internal Affairs and Communications’ and Ministry of Economy, Trade and Industry’s “Economic Census,” each prefecture’s materials, the Ministry of Land, Infrastructure,
Transport and Tourism’s “Survey of Building Construction Work Started,” the Ministry of Health, Labour and Welfare’s “Employment referrals for general workers” and the Statistics Bureau of Japan’s “Labour Force Survey”

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐9‐

Shipbuilding Yards in Ehime Prefecture
Fujiwara Shipbuilding Co., Ltd.
I-S Shipyard Co., Ltd.
Yamanaka Shipbuilding Co., Ltd.

Hakata Shipbuilding Co., Ltd.
Murakami Hide Shipbuilding Co., Ltd.
Shimanami Shipyard Co., Ltd.

Namikata Shipbuilding Co., Ltd.
Okashima Zosen Co., Ltd.

Iwagi Zosen Co., Ltd.

Kadota Dock Yard Co., Ltd.
Kurinoura Dockyard Co., Ltd.
Honai Jukogyo Co., Ltd.

Akamatsu Shipbuilding Co., Ltd.
Matsuda Shipbuilding Co., Ltd.
Miyoshi Shipbuilding Co., Ltd.

Onishi Shipyard,
Shin Kurushima Dockyard Co., Ltd.

Asakawa Shipbuilding Co., Ltd.
Head Office and Shipyard, Imabari Shipbuilding Co., Ltd.
Shin Kurushima Hashihama Dockyard Co., Ltd.
Higaki Shipbuilding Co., Ltd.
Yano Shipbuilding Co., Ltd.

Saijo Shipyard, Imabari
Shipbuilding Co., Ltd.

15 Groups, 22 Offices
Source: Prepared by the Bank based on “Documents for Shipbuilding Under Jurisdiction” published by the Shikoku Land Transport Office*Shipbuilding facilities currently in operation either constructing or repairing steel vessels of at least 500 gross tons or 50 m or longer
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐ 10 ‐

Outlook of Dry Bulk Market Conditions
Dry Bulk Transport Demand and Supply

Future Market Outlook■Volume of cargo movement and shipping tonnage■Baltic Dry Index (BDI) trends
Growth rate of cargo movement

Maximum value
11,793（May 2008）

Growth rate of shipping tonnage

5,167(September 30,
2021)

Minimum value 290（February 2016）(Plan)(Plan)

Source: ”Clarkson Research Shipping Review & Outlook” (Autumn 2021)”■Dry bulk transport demand and supply●Shipping tonnage of dry bulk vessels for 2021 is expected to increase by 3.4% (up 313
thousand DWT) from 2020. The volume of cargo movement is also expected to increaseby 3.7% from 2020 due to the recovery from the impact of COVID-19.
●The increase of shipping tonnage in 2022 is estimated to be 14.5 million tons, the lowest
in the last decade, the growth rate from 2021 is estimated to be limited to 1.5%. Cargo
movement is expected to increase by about 1.7%.

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

■Future market outlook● In 2021, the market conditions have been supported by the increase in the cargo
movement, the increase in dry bulk transport of container cargo due to the recovery of
economic activities from the impact of COVID-19, and shipping tonnage limited due to thereplacement of crews, the market environment became favorable for the fist time in 12
years since the ocean transport bubble economy period.
●The future market conditions are expected to remain solid during the fiscal year in strongtransport demand, due to continued restrictions on the replacement of crews by bordermeasures in each country and the small volume of new ship constructions completed.
●Expected long-term factors in market changes include trends of China's economic policies,changes in resource prices, and retirement of aging ships due to stricter environmental
regulations.
‐ 11 ‐

Breakdown of Balance of Loans and Deposits at End of Period
1. Breakdown of balance of loans at end of period(Units: Billions of Yen)

September 2017

March 2018

September 2018

Total loans
General loans

4,132.4
4,292.6
3,899.0
4,054.6
Corporate loans (incl. overseas, etc.)
2,891.8
3,030.6
Corporate loans (domestic branches)
2,864.4
2,965.5
Individual financing
1,007.1
1,024.0
Housing loans
731.2
742.6
Apartment and building loans
186.3
191.3
Card loans
30.0
29.6
Municipal loans, etc.
233.4
238.1
(Note) The figures shown for apartment and building loans are the total of the "institutional finance" portion.

4,431.5
4,192.2
3,146.0
3,060.4
1,046.2
758.2
198.0
29.1
239.2

March 2019
4,550.8
4,310.7
3,238.2
3,135.8
1,072.4
781.0
202.2
28.3
240.1

September 2019
4,617.5
4,387.7
3,291.1
3,158.3
1,096.5
805.3
203.1
27.9
229.7

March 2020
4,756.6
4,522.2
3,397.9
3,248.8
1,124.3
831.8
205.2
26.9
234.3

September 2020
4,874.5
4,648.1
3,507.7
3,347.1
1,140.3
852.6
205.2
24.5
226.4

March 2021
4,999.3
4,783.6
3,624.6
3,434.9
1,158.9
870.7
205.7
23.6
215.6

2. Breakdown of balance of assets in custody such as deposits, etc. at end of period

September 2017
Total deposits, etc. + assets in custody A

Total deposits, etc.
Total deposits
Individual
General companies
PublicFinancial
Overseas / offshore
NCD
General companies
PublicGeneral company funds (incl. NCD)
Public funds (incl. NCD)
Foreign currency deposits (balance)
Individual deposits+individual assets in custody

Individual deposits
Individual assets in custody

March 2018

September 2021
4,959.1
4,752.4
3,586.1
3,387.6
1,166.3
879.6
206.2
22.9
206.6

Vs. September 2020
84.6
104.3
78.4
40.5
26.0
27.0
1.0
(1.6)
(19.8)(Units: Billions of Yen)

September 2018

March 2019

September 2019

March 2020

September 2020

March 2021

September 2021

5,765.3
5,424.5
4,987.1
3,376.3
1,429.1
135.8
23.1
22.6
437.4
319.6
117.7
1,748.8
253.5
104.1

5,889.0
5,546.0
5,099.6
3,392.1
1,442.0
164.4
53.8
47.3
446.4
375.4
71.0
1,817.4
235.4
118.3

5,894.2
5,542.2
5,057.7
3,412.0
1,455.4
111.4
37.4
41.3
484.4
345.1
139.2
1,800.6
250.7
111.0

6,070.6
5,712.6
5,247.1
3,423.6
1,555.4
126.4
61.0
80.5
465.5
348.2
117.3
1,903.6
243.7
111.0

6,174.5
5,817.3
5,288.5
3,450.2
1,553.7
113.2
31.9
139.4
528.8
390.0
138.7
1,943.8
252.0
101.6

6,094.1
5,754.3
5,265.6
3,512.5
1,564.4
119.8
40.8
28.0
488.7
367.0
121.7
1,931.4
241.5
89.3

6,532.5
6,184.6
5,652.6
3,652.2
1,733.5
112.7
32.7
121.3
531.9
384.9
147.0
2,118.5259.8
96.3

6,870.9
6,522.6
5,983.1
3,740.7
1,853.4
162.8
43.4
182.6
539.4
427.4
112.0
2,280.8274.9
99.0

6,956.9
6,603.0
5,956.2
3,794.0
1,857.9
114.0
30.6
159.5
646.8
476.2
170.6
2,334.1
284.6
116.0

Vs. September 2020
424.4
418.4
303.6
141.8
124.4
1.3
(2.1)
38.2
114.9
91.3
23.6
215.6
24.8
19.7

3,703.7
3,376.3
327.3

3,722.5
3,392.1
330.4

3,751.4
3,412.0
339.3

3,769.1
3,423.6
345.4

3,795.6
3,450.2
345.4

3,841.4
3,512.5
328.8

3,988.5
3,652.2
336.3

4,078.3
3,740.7
337.6

4,137.4
3,794.0
343.4

148.9
141.8
7.1

340.7
25.0
81.0
202.1
32.5
192.7
533.5

343.0
25.4
71.6
206.2
39.7
201.4
544.4

351.9
24.0
71.5
210.8
45.5
208.3
560.3

357.9
22.4
68.6
215.7
51.0
199.5
557.4

357.1
20.3
66.7
216.4
53.6
207.8
565.0

339.7
19.8
53.8
214.2
51.7
202.4
542.2

347.8
19.9
58.7
211.3
57.7
226.6
574.5

348.3
19.2
61.6
208.7
58.6
245.2
593.5

353.9
20.0
64.0
207.2
62.5
246.3
600.2

6.1
0.1
5.3
(4.1)
4.8
19.7
25.8

9.2%

8.9%

8.9%

8.6%

8.5%

8.3%

8.3%

<Assets in custody (Term-end basis)>
Assets in custody at the Bank (excl. deposits, etc.) B

JGBs
Investment trusts
Single premium policies
Financial product intermediary
Shikoku Alliance Securities balance C
Balance of Group's assets in custody B+C=D

9.0%
8.9%
Assets in custody composition (Ｄ/Ａ+Ｃ)(Note) The figures shown for foreign currency deposits (balance) are the total excluding overseas / offshore.

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

－‐ 12 ‐

Balance and Composition of Loans by Industry■There are no major changes in the composition of loans by industry, and the loans are well-balanced(Units: Billions of Yen, %)September 2016

September 2017

Composition

Manufacturing

September 2018

Composition

September 2019

Composition

September 2020

Composition

September 2021

Composition

Composition

Vs. September 2020
Balance

Rate of balance
increase/decrease

592.0

15.0

589.4

14.4

629.8

14.5

646.9

14.4

671.7

14.2

652.5

13.7

(19.2)(2.9%)

Agricultural

2.6

0.1

2.5

0.1

2.8

0.1

2.8

0.1

2.9

0.1

2.8

0.1

(0.1)

(3.4%)

Forestry

0.1

0.0

0.2

0.0

0.2

0.0

0.3

0.0

0.4

0.0

0.4

0.0

0.0

0.0%

Fishing

11.8

0.3

12.3

0.3

11.1

0.3

11.2

0.2

9.8

0.2

8.1

0.2

(1.7)

(17.3%)

Mining

8.8

0.2

8.9

0.2

8.5

0.2

8.1

0.2

6.8

0.1

6.4

0.1

(0.4)

(5.9%)

Construction

110.0

2.8

105.0

2.6

111.2

2.6

108.9

2.4

126.4

2.7

127.7

2.7

1.3

1.0%

Electricity, gas, heat provision, water

89.2

2.3

97.5

2.4

122.5

2.8

141.3

3.2

167.4

3.6

197.4

4.1

30.0

17.9%

Information communications

27.2

0.7

28.5

0.7

21.7

0.5

20.0

0.4

17.8

0.4

18.2

0.4

0.4

2.2%

603.3

15.3

649.2

15.8

703.3

16.2

728.8

16.3

801.6

17.0

847.5

17.8

45.9

5.7%

489.9

12.4

526.6

12.8

566.5

13.0

593.6

13.2

666.0

14.1

716.6

15.1

50.6

7.6%

Wholesale and retail

466.9

11.9

465.4

11.3

500.3

11.5

499.5

11.1

509.9

10.8

510.1

10.7

0.2

0.0%

Finance and insurance

180.3

4.6

198.7

4.8

208.9

4.8

190.1

4.2

181.3

3.8

170.0

3.6

(11.3)(6.2%)

Real estate

213.4

5.4

238.4

5.8

259.0

6.0

284.1

6.3

312.2

6.6

311.7

6.5

(0.5)

(0.2%)

Various services

390.9

9.9

426.2

10.4

425.5

9.8

459.2

10.2

483.4

10.3

483.4

10.2

0.0

0.0%

173.5

4.4

187.6

4.6

191.5

4.4

194.2

4.3

205.0

4.3

207.6

4.4

2.6

1.3%

230.0

5.8

232.6

5.7

233.9

5.4

224.4

5.0

222.1

4.7

203.6

4.3

(18.5)(8.3%)

1,009.4

25.6

1,049.7

25.6

1,106.5

25.5

1,158.1

25.8

1,199.4

25.4

1,220.2

25.6

20.8

1.7%

3,936.3

100.0

4,105.0

100.0

4,345.9

100.0

4,484.6

100.0

4,714.0

100.0

4,760.5

100.0

46.5

1.0%

Transportation
Of which, ocean transport

Of which, medical-related

Regional public entities
Other
Total

(For domestic branches, excludes special international transactions account)* “Goods rental” is included in “real estate” from the six months ended September 30, 2009.
“Real estate” for the six months ended September 30, 2021, excluding “goods rental,” was ¥293.0 billion, which is an increase of ¥2.9 billion (+1.0%) compared with the six months ended September 30,
2020. In addition, “other” includes “home renting by individuals” (¥214.7 billion for the six months ended September 30, 2021).
* As “ocean transport” displays balances applicable to the “ocean transport industry” according to Japan Standard Industrial Classification, this figure does not match “Loan balance for the maritime
industry” on page 19 of the Earnings Briefing.
‐ 13 ‐
Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Table of Changes in Borrower Classification■ Activities for supporting enhancement of corporate value are conducted through business feasibility assessments ofcustomers■ Corporate revitalization support is provided mainly by the Corporate Support Office
Use of various types of revitalization schemes, such as reconstruction funds and the SME Business Rehabilitation Support
Co-operative, as well as solution sales[Changes in borrower classification for business borrowers] (one year)
September 30, 2021

Upper row: Number of borrowers
Lower row: Credit amount(Hundreds of millions of yen)Normalborrowers

Total

Borrowers requiring
close monitoring

Borrowers understrict observation

Borrowers at
risk of bankruptcy

Rate of degradation
to at risk ofbankruptcy or
Substantially
Bankrupt borrowers
below
bankrupt borrowers

Improvement

Degradation

18,952

17,32016,652

606

27

26

7

2

0.18%

668

35,57934,82533,793

947

66

18

1

0

0.05%

1,032

Borrowers requiring
close monitoring

2,278

2,169

434

1,604

23

105

1

2

4.74%

434

131

4,103

3,896

756

2,967

45

128

0

0

3.12%

756

173

Borrowers understrict observation

134

118

15

6

84

12

1

0

9.70%

21

13

242

227

8

7

198

14

0

0

5.73%

15

14

Borrowers
at risk of bankruptcy

315

277

12

20

3

234

3

5

35

8

529

432

5

20

3

401

1

2

28

3

Substantiallybankrupt borrowers

82

58

1

0

0

0

56

1

1

1

15

10

0

0

0

0

10

0

0

0

28

13

0

0

0

0

0

13

0

12

2

0

0

0

0

0

2

0

21,78919,955

17,114

2,236

137

377

68

23

491

821

40,48139,392

34,563

3,940

313

561

12

4

799

1,222

Normal borrowers

September 30, 2020

Bankrupt borrowers

Total(Note 1) The chart displays the changes in the borrower classification from September 30, 2020 to September 30, 2021.
(Note 2) The balances after changes are the balances after write-offs as of September 30, 2021.

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐ 14 ‐

Management by Risk Category: Securities Investment(Units: Billions of Yen)
Six months ended September 30, 2021
Risk Category(*1)

Yen-denominated bondsBookbalance

Evaluation
gain / loss

Total

MarketbalanceComposition

Vs. March
2021

Interest and dividend income

profit /Interestloss (*2)

received (*3)

Profit / loss frompurchase, sale,

Increase/decrease on

Source of main revenue and profit

Procurement and amortization gain/loss on
evaluation (vs.
cost
(*4)
March 2021)

526.3

+9.3

535.6

30.3%

(2.5%)

3.0

1.7

1.7

0.0

0.0

+1.3 Difference in long and short term interest on yen interest

98.5

+3.5

102.0

5.8%

(4.2%)

1.7

0.5

0.5

0.0

0.0

+1.2

79.4

+0.8

80.2

4.5%

+0.4%

1.6

0.0

0.0

0.0

0.0

+1.6 Rise in expected inflation rate

Foreign currency bonds (with hedges)

359.7

+11.1

370.7

20.9%

(1.6%)

6.2

3.5

3.6

0.1

(5.1)

+7.8 Difference in long and short term interest on overseas interest

Foreign currency bonds (without hedges)

286.2

+8.1

294.4

16.6%

+1.0%

5.0

1.8

1.8

0.0

4.5

(1.3) Gain on foreign exchange /interest revenue

Domestic and overseas stocks (incl. stock trusts)

161.8+265.2

427.0

24.1%

+2.5%

6.3

3.8

3.8

0.0

3.8

(1.4) Growth in domestic/foreign companies centered on transaction partners

Alternatives

119.6

+23.0

142.6

8.1%

+0.5%

5.8

2.4

2.4

0.0

1.2

+2.2

Hedge funds

37.3

+0.9

38.1

2.2%

+0.1%

0.6

0.8

0.8

0.0

0.0

(0.2) Strategic diversification by external consigned management

Real estate-related

70.3

+22.2

92.5

5.2%

+0.3%

5.0

1.6

1.6

0.0

1.2

+2.2 Revenue from real estate rentals and profit from price increase

Private equity

7.2

+0.0

7.2

0.4%

+0.0%

(0.1)

(0.0)

(0.0)

0.0

0.0

(0.0) Rise in enterprise value due to management improvement of unlisted stocks, etc.

Emerging stocks

4.9

(0.1)

4.8

0.3%

+0.0%

0.2

0.0

0.0

0.0

0.0

+0.2 Growth and foreign exchange gains in emerging markets

1,453.7+316.61,770.3

100.0%

-

26.3

13.2

13.3

0.1

4.4

+8.7

Of which, JGBs
Of which, inflation-indexed JGBs

Total

*1 Assets invested by the Financial Market Division calculated based on primary risk, regardless of accounting item (on the basis of including money held in trust, unsecured repurchase agreement, etc.)*2 "Total profit / loss" and "interest and dividend income" eliminate three-month LIBOR interest, etc., as procurement costs, but this differs from actual procurement costs.
*3 Interest received includes gain / loss on cancellation of funds, etc., recorded in asset management revenue.
*4 Includes derivative-related gain / loss

<Of yen-denominated bonds and foreign currency bonds, investment conditions in credit risk and securitized products, etc.>
Credit risk
Securitized products
Subtotal

231.2

(0.1)

231.1

13.1%

+1.9%

(1.3)

1.2

1.2

0.0

0.0

(2.5) Business continuity of domestic and foreign companies

2.6

+0.0

2.6

0.1%

(0.0%)

0.0

0.0

0.0

0.0

0.0

(0.0) Loan interest revenue from housing loans, etc.

233.8

(0.1)

233.7

13.2%

+1.9%

(1.3)

1.2

1.2

0.0

0.0

(2.5)

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

‐ 15 ‐

Balance of Investments by Region and Sector: Financial Market Business
Balance by Region (Final Risk Country Basis)

Balance by Sector (Final Risk Country Basis)(Units: Billions of Yen)

(Units: Billions of Yen)
September 2021
Loan balanceCommitment
balance

September 2021

Total

Japan

58.8

15.6

74.5

57.3%

North America

17.5

1.7

19.2

14.8%

(14.9)(1.7)(16.6)(12.8%)

Asia and Oceania

16.1

0.0

16.1

12.4%

Europe

13.7

0.0

13.7

10.6%

Middle East

3.8

0.0

3.8

2.9%

Latin America

2.4

0.0

2.4

1.9%

Total

112.6

17.3

129.9

100.0%(Of which, the U.S.)* Excluding Singapore Branch

Loan balance

Composition

Commitment
balance

Total

Composition

58.0

15.6

73.6

56.7%

(32.3)(6.4)(38.8)(29.9%)

Manufacturing

14.1

0.0

14.1

10.9%

Transportation

14.7

0.0

14.7

11.4%

(10.1)(0.0)(10.1)(7.8%)

Various services

14.3

0.0

14.3

11.0%

Financial

5.4

1.7

7.1

5.5%

Wholesale and retail

1.0

0.0

1.0

0.8%

Construction

1.4

0.0

1.4

1.1%

Other

3.5

0.0

3.5

2.7%

112.6

17.3

129.9

100.0%

Electricity and gas(Of which, solar power generation)(Of which, aircraft finance)

Total* Excluding Singapore Branch

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‐ 16 ‐

Status of Integrated Risk Management[Status of Integrated Risk Management (September 30, 2021)](Units: Hundreds of millions of yen)

○ Operational risk

• Calculated by The Standardized Approach○ Market risk (holding period of six months, 99.9%)

Buffer3,010

Common stock, etc.
Tier 1(Nonconsolidated)
6,710• Take into account correlation between different risks• Core deposits: Use an internal model• Stock VaR: Includes strategic equity holdings

Operational risk
130
Not utilized
1,412
Market risk
2,880

○ Credit risk (holding period of one year, 99.9%)• Business loans, etc.: Monte Carlo method• Loans for individuals: Analysis method

Credit risk
690
Risk capital(¥671.0 billion)

Risk limit
Second half offiscal 2021(¥370.0 billion)

Copyright © 2021 THE IYO BANK,LTD. All Rights Reserved.

Risk limit
First half of fiscal
2021(¥378.0 billion)

Risk amount
September 2021
results(¥236.7 billion)‐ 17 ‐