Fiscal 2021 Earnings Briefing Materials(April 1, 2021 – March 31, 2022)
Investor Relations 2022

Iyo BankJune 3, 2022

IndexI. Summary of Earnings for Fiscal 2021
II. Transition to Holding Company Structure
III. Main Strategies and Progress of Fiscal 2021 Medium-Term
Management Plan
III-1. Major Numerical Targets of Medium-Term Management Plan
III-2. Progress of Business Strategies and Plan
III-3. Efforts for Sustainability
III-4. Profit / Loss Forecasts and Capital Policy

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

‐1‐

Profit and Loss Overview for Fiscal 2021
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 in custody
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 loans ②
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

Mainly due to increase in core business gross profit and decrease in credit costs, profit increased at each profit stage
and a high level of profit was secured
Fiscal 2021

YoY

Increase/
Decrease+4.90%

Fiscal 2020

84,54572,455
6,299
1,630+3,950+1,101
+98
+181

5,790

+2,752

49,08625,824
20,683
2,578
35,459

(574)
+124
(390)
(308)
+4,525+14.63%49,66025,70021,0732,886
30,93436,846+7,450+25.34%29,396

4,203(8,301)

12,504(367)(9,541)

9,174

5,135
564
1,188

+1,195(46)(2,549)

3,940
610
3,737

(2,271)(4,786)

2,515

3,460
2,789
35,234(463)
34,771
24,660+2,238+1,180+11,458(91)+11,367+7,981+47.85%

1,222
1,609
23,776(372)
23,404
16,679114,142
33,555+9,714+9,279+9.30%+38.22%

104,428
24,276

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80,59571,354
6,201
1,449
3,038

(1.16%)+48.19%■ Core business gross profit

Up ¥3,950 million YoY✓ Interest and dividend income increased due to strong performance in foreigndenominated loans and securities, and the recording of special interest granted by the
Bank of Japan.
✓ Other operating income increased due to stronger revenue on derivatives.

■ Expenses (-)

Down ¥574 million YoY✓ Nonpersonnel expenses decreased through efforts for improvement of operational

efficiency and reductions in expenses. Also, taxes decreased due to a decrease in the
consumption tax.

■ Credit costs (-)

Down ¥8,301 million YoY✓ Provision for COVID-19 measures of ¥8.7 billion was recorded in the previous year and theprovision of reserve for general loan losses decreased.
✓ Amortization of non-performing loans increased due to an increase in bankruptcies anddowngrades amid the COVID-19 pandemic.

■ Gain (loss) related to securities

Down ¥2,549 million YoY✓ Due to foreign bonds being bought/sold for replacements amid the trend of rising interest
rates, gain (loss) related to bonds including JGBs, etc. decreased.
✓ Gain (loss) related to stock, etc. increased due to increased gain on sales of strategic equity
holdings.

■ Net income

Up ¥7,981 million YoY‐2‐

Factors in Increase / Decrease in Core Business Gross Profit for Fiscal 2021
A high level of core business gross profit was secured
due mainly to an increase in other operating income

Factors in Increase / Decrease in Core Business Gross Profit
Year-on-year (Fiscal 2021 – 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 with foreign
currency funding costs
The number in parentheses for each profit is the actual profit amountInterest and dividend income(¥72.4 billion)

Of which, domestic currency(¥40.4 billion)

Gain on loan
management(¥48.2 billion)(0.86)+0.11

Of which, foreign currency(¥7.8 billion)

+0.97

+1.10

Of which, domestic currency(¥13.5 billion)

Gain on securities
management(¥23.5 billion)

Core business gross profit(¥84.5 billion)(2.42)(0.27)+3.95

Of which, foreign currency(¥10.0 billion)+2.15

Other (¥0.7 billion)+1.26
Fees andcommissions(¥6.2 billion)

+0.10
Other
(¥5.8 billion)+2.75
Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

Volume factors (0.10) (Average loan balance down ¥11.1 billion)
Yield difference factors (0.76) (Yield difference down 0.02%)
Volume factors +1.54 (Average loan balance up ¥118.7 billion)
Yield difference factors (0.57) (Yield difference down 0.09%)
Volume factors (2.40) (Average securities balance down ¥157.2 billion)
Yield difference factors +2.90 (Increase in stock dividends, fund
distributions, etc.)
Gain on fund cancellation factors (2.92) (Recorded loss on
cancellation of investment trusts, etc.)
Volume factors +0.90 (Average securities balance up ¥66.2
billion)Yield difference factors +1.25 (Yield difference up 0.23%)… Recording of ¥0.87 billion in special interest granted by the Bank of Japan, etc.

Revenue on assets in custody(¥1.6 billion)+0.18… Insurance agency commissions +0.08, investment trust related commissions +0.10, etc.

Other (¥4.6 billion)(0.08)… Solutions-related commissions +0.16, commission received on domestic exchange (0.18), etc.

… +1.24 from gain (loss) on foreign exchange transactions, +1.51 from gain (loss) on derivatives‐3‐

Loans, Deposits, and Assets in Custody for Fiscal 2021
Deposits, etc.

Balance of deposits, etc. by region
RegionLoans

Deposits, etc. were up 2.0% year-on-year

Fiscal 2020

Fiscal 2021

Loans were up 1.4% year-on-year(Units: Billions of yen)

Balance of loans by region

Increase/
Decrease

RegionYoY(Units: Billions of yen)

Fiscal 2020

Fiscal 2021

Increase/
Decrease

YoY

Within Ehime Prefecture

4,938.1

5,140.9+202.8+4.1%

Within Ehime Prefecture

2,543.9

2,543.9

+0.0

+0.0%

Shikoku (excluding Ehime)

265.4

285.5

+20.1

+7.6%

Shikoku (excluding Ehime)

331.7

345.0

+13.3

+4.0%

Kyushu

181.0

186.1

+5.1

+2.8%

Kyushu

317.7

320.6

+2.9

+0.9%

Chugoku

300.5

276.2

(24.3)(8.1)%

Chugoku

467.8

482.1

+14.3

+3.1%

Kinki

192.4

198.4

+6.0

+3.1%

Kinki

381.1

394.4

+13.3

+3.5%

Tokyo and Nagoya

462.3

477.9

+15.6

+3.4%

Tokyo and Nagoya

649.1

646.7

(2.4)

(0.4)%

Singapore

28.1

68.7

+40.6

+144.5%

Financial Market Business Office

118.0

119.3

+1.3

+1.1%

Offshore, etc.

154.5

20.0

(134.5)(87.1)%

Total (domestic branches)

4,809.5

4,852.4

+42.9

+0.9%

6,522.6

6,654.1+131.5+2.0%

Singapore

189.7

216.4

+26.7

+14.1%

4,999.3

5,068.8

+69.5

+1.4%

Balance of assets in custody(Units: Billions of yen)

Fiscal 2020

Fiscal 2021

Increase/
Decrease

YoY

Group assets in custody

593.5

607.1

+13.6

+2.3%

Balance at the Bank
Balance at Shikoku Alliance
Securities
Sales of Group assets in custody

348.3

361.1

+12.8

+3.7%

245.2

246.0

+0.8

+0.3%

131.9

137.2

+5.3

+4.0%

Sales at the Bank

49.4

57.5

+8.1

+16.4%

Sales at Shikoku Alliance Securities

82.4

79.6

(2.8)

(3.4)%

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Share within Ehime Prefecture as of March 31, 2022
(excluding Japan Post, agricultural cooperatives, etc.)
Deposits

Assets in Custody

Total

Balance of assets in custody were up 2.3%
year-on-year

Loans

Total

The
Bank

Regional banks otherthan the BankCity banks /Trust banks

Secondregional banks

Credit unions‐4‐

Credit Costs and Disclosed Non-performing Loans for Fiscal 2021
Credit Costs
Credit costs by factor(Units: Billions of yen)

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Credit costs total

5.8

6.9

12.5

4.2

(8.3)

Provision of reserve for general loan losses

0.2

0.4

9.1

(0.3)

(9.4)

Amortization of non-performing loans

6.1

7.1

3.9

5.1

+1.2

Bankruptcies

1.0

1.3

0.5

1.4

+0.9

Downgrades, etc.

6.9

8.1

6.2

6.5

+0.3

Upgrades and collections

(1.8)

(2.2)

(2.8)

(2.8)

+0.0

Recoveries of written off claims (-)

0.5

0.7

0.6

0.5

(0.1)

Credit management expense ratio (*)

0.13%

0.15%

0.26%

0.08%

(0.18)PYoY

Credit costs were down ¥8.3 billion year on year
due to a pullback from the absence of provision for
COVID-19 measures of ¥8.7 billion recorded in theprevious year, despite an increase in bankruptcies
and downgrades, etc. amid the COVID-19 pandemic(*) 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 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Loans to bankrupt or effectively bankrupt
borrowers

6.0

6.5

3.6

1.7

(1.9)

Doubtful assets

46.6

53.2

52.8

62.3

+9.5

Credit subject to specific risk management

18.6

18.0

16.8

23.7

+6.9

Total disclosed non-performing loans

71.3

77.7

73.3

87.9

+14.6

Ratio of disclosed non-performing loans

1.48%

1.55%

1.39%

1.64%

+0.25P

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YoY

Although ratio of non-performing loan was up
amid the COVID-19 pandemic, continued at alow level of 1.64%‐5‐

Evaluation Gain (Loss) on Securities and Equity Ratio for Fiscal 2021
¥271.1 billion

Evaluation Gain on Securities✓ 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)

March 201714.32%

Consolidated Gross Equity Ratio
Consolidated gross equity ratio

Nikkei Average (Yen)

March 2018

Gain / loss on securities(left axis)

March 2019

March 2020

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

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March 2021

March 2022

March 2017

March 2018

Tier 1 ratio for common
stock, etc.

March 2019

March 2020

March 2021

March 2022

Gross equity ratio‐6‐Response to COVID-19
Continuation of Fund Management
Support for Customers

Support for Business Issues

COVID-19-related Loans

Support by the Support Team for COVID-19 Measures■ Loans made (cumulative) Approx. ¥220.0 billion(Hundreds ofMillions of Yen)

With Credit
Guarantee
Association

ProperNumber(Number) Business matching ICT consulting Business succession, M&A
 Financing
Support Team forPrimary
industry
support Staffing
COVID-19 Measures Manufacturer support
 Overseas business Local product support website support
Providing wide support for business issues by forming teams
across the organization

Results (as of March 31, 2022)
In progress

33

Done

607

Total

640

Examples of efforts

 Supported sales channel development by utilizing networks such as various alliances for customers who are seeking todevelop sales channels due to the cancellation of business meetings or a decrease in sales
 Developed a remote work environment by utilizing ICT consulting for customers who are considering introducing workfrom home Dealt with a total of 377 cases since the start of the first public offering for participants in March 2021 to the fifth
public offering, and support creation of new businesses for customers working on business restructuring(Number)March 2021

March 2022

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

 Number of cases for each public offering of Business Restructuring Subsidy
Number of
supports provided

TotalFirst Application

Second Application

Third Application

Fourth Application

Fifth Application‐7‐

IndexI. Summary of Earnings for Fiscal 2021
II. Transition to Holding Company Structure
III. Main Strategies and Progress of Fiscal 2021 Medium-Term
Management Plan
III-1. Major Numerical Targets of Medium-Term Management Plan
III-2. Progress of Business Strategies and Plan
III-3. Efforts for Sustainability
III-4. Profit / Loss Forecasts and Capital Policy

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

‐8‐

Transition to Holding Company StructureGroup structure after the transition (scheduled to be established on October 3, 2022)

Iyogin Holdings
Iyo Bank

Banking services

The Iyogin Business Service

Business support services

Iyogin Challenge & Smile

Business support services* Special subsidiary company

4 affiliated companies

Management business ofinvestment fund, etc. (3 companies)
Support business for branding anddevelopment of sales channels*

The Iyogin Credit Guaranty

Credit guarantee services

Iyogin Capital

Investment business

7 consolidated subsidiaries

Venture fund2 non-consolidated subsidiaries Venture fundIyogin Regional Economy ResearchCenterInvestigation and research businessregarding finance, economics, etc.
Management consulting businessIyogin DC Card

Credit card businessIyogin Leasing

Lease businessIyogin Computer Service

Business related tocomputer, etc.
Financial instruments
business

Shikoku Alliance Securities*An advanced banking service company (Trade name: Shikoku Brand)
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Inheriting the spirit of the Bank’s Corporate Credo

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

Purpose of the transition to a holding company structure
Expansion of business fields inlight of relaxation of regulations

Enhanced group governance bystrengthening business
management functions

Maximizing group synergies bychanging employee and officer
awareness and behavior‐9‐Maximizing Group Synergies
Expansion of business fields in light of relaxation of regulations■By centralizing common operations within the Group to the holding company, we will pursue higher
efficiency while making efforts to expand business fields to contribute to solving regional andcustomer issues
Centralizing common
Expansion of business fields
operations within
the Group

Improving problem
solving andearnings power

Take on the challenge of new
operations that contribute toimprovement of sustainability inthe region

Strengthening operations related tosolving increasingly evident regional issues
such as depopulation and the need for
productivity improvement
Focusing on
management andoperations by realizing
higher efficiency

Enhanced group governance by strengthening business
management functions
 By making Iyogin Holdings and Iyo Bank companies with an Audit and Supervisory Committee, wewill build consistent internal management structures in the holding company and the core company
 By centralizing business management to Iyogin Holdings, the Group companies will be able to focus
on execution of operations, resulting in efficient business operations

Iyogin Holdings
Audit and Supervisory
Committee

Internal audit divisions
Iyo Bank
Audit and Supervisory
Committee

Internal audit divisions

Banking services, guarantee, investments, credit cards,
lease, asset management, insurance, business succession,
M&A, business matching, etc.
－Current－－Vision for the future－

President

President

Board ofDirectors

Divisions andDepartments

Subsidiaries of Iyo Bank
Audit & Supervisory
Board Members

Board of Directors

Internal audit divisions

Divisions andDepartments

Board of Directors

Divisions and Departments

Group companies other than Iyo Bank

Audit &
Supervisory Board
Members

Board ofDirectors

Internal audit
divisions

Divisions andDepartments(There is no unified structure of internal audit divisions
for each group company): Reporting

Maximizing group synergies by changing employee and officer awareness andbehavior

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: Cooperation‐ 10 ‐

IndexI. Summary of Earnings for Fiscal 2021
II. Transition to Holding Company Structure
III. Main Strategies and Progress of Fiscal 2021 Medium-Term
Management Plan
III-1. Major Numerical Targets of Medium-Term Management Plan
III-2. Progress of Business Strategies and Plan
III-3. Efforts for Sustainability
III-4. Profit / Loss Forecasts and Capital Policy

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‐ 11 ‐

IndexI. Summary of Earnings for Fiscal 2021
II. Transition to Holding Company Structure
III. Main Strategies and Progress of Fiscal 2021 Medium-Term
Management Plan
III-1. Major Numerical Targets of Medium-Term Management Plan
III-2. Progress of Business Strategies and Plan
III-3. Efforts for Sustainability
III-4. Profit / Loss Forecasts and Capital Policy

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‐ 12 ‐

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 thestrategies under the Medium-Term Management Plan, though a severe business environment is expected to continue[Major Numerical Targets]

Fiscal 2021
Results

Targets for
Fiscal 2023

¥86.6 billion¥90.4 billion¥86.0 billion¥18.0 billion¥26.4 billion¥23.0 billion

3.82%

5.34%

4.0% or more

Consolidated core OHR

60.19%

57.05%

Approx. 60.0%

Consolidated common stock Tier 1
ratio

14.58%

14.28%

Approx. 15.0%

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

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Fiscal 2020
Results‐ 13 ‐

Fiscal 2021 Medium-Term Management Plan _ Major Numerical Targets II
Deposits, etc.

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

[Plans for average deposits, etc., balance and assets in custody balance]
Fiscal 2020
Results(Units: Billions of yen)

Fiscal 2021
Results

YoY

Average deposits, etc., balance

6,184.6

6,623.1+438.5

Of which, individual deposits

3,658.3

3,807.9+149.6

Group assets in custody balance

593.5

607.1

+13.6

348.3

361.1

+12.8

245.2

246.0

+0.8

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

Loans

Fiscal 2023
Increase/ decreasePlan
during the Plan
6,685.0+500.4
3,876.0+217.7

657.0

+63.5

372.0

+23.7

285.0

+39.8

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](Units: Billions of yen)

Fiscal 2020
Results

Fiscal 2021
Results

YoY

Average loan balance

4,894.4

5,002.1+107.7

Corporate loans

3,246.8

3,303.7+56.9

Of which, within Ehime

1,438.6

1,492.5+53.9

Individual loans

1,130.7

1,157.3+26.6

Municipal loans

232.2

213.1

(19.1)

Financial Market Business Office

116.3

115.6

(0.7)

Singapore Branch

168.2

212.1

+43.9

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Fiscal 2023
Increase/ decreasePlan
during the Plan
5,290.0+395.63,433.0+186.2

1,538.0+99.4

1,281.0+150.3211.0(21.2)

117.0

+0.7

248.0

+79.8

‐ 14 ‐

IndexI. Summary of Earnings for Fiscal 2021
II. Transition to Holding Company Structure
III. Main Strategies and Progress of Fiscal 2021 Medium-Term
Management Plan
III-1. Major Numerical Targets of Medium-Term Management Plan
III-2. Progress of Business Strategies and Plan
III-3. Efforts for Sustainability
III-4. Profit / Loss Forecasts and Capital Policy

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

‐ 15 ‐

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 five business strategies and four plans. By doing so, we will strive to strengthen relationships of trust with local communities andcustomers, and work to improve sustainability as a corporate group.

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 © 2022 THE IYO BANK,LTD. All Rights Reserved.

‐ 16 ‐

Business Strategies _ Corporate Related I By applying business feasibility assessments as the starting point for solving various customer issues and needs in different business stages and value
chains, we create enhanced corporate value for customers and expand Group revenue
Customer issues and needs
Businessfoundation
Purchase
Logistics

Production

GrowthShipment
Distribution

Sales
MarketingServices

Solution Revenue Results

MaturedPurchase
Logistics

Production

Reform/ Decline
Shipment
Distribution

Sales
MarketingServicesOwing to contributions from financing and derivatives, etc., plans for the final year (fiscal 2023)of the current Medium-Term Management Plan were achieved ahead of schedule(Millions of Yen)

OthersOverseas, derivatives(Various issues and needs in business stages and value chains)

Corporate solutions revenue*

Sharing of Management Issues through Business Feasibility Assessment(Hundreds ofMillions of Yen)

(Number)
Total average loan balance
Number of Mirai Support Sheet prepared
Number of business feasibility assessment
investigation committee held

Identifying andsharing ofcustomers’
management
issues+Formulatingconcrete
supporting
measures forenhancement ofcorporate value
Fiscal 2020

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

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Fiscal 2021

Fiscal 2021 Plan

Fiscal 2021

Fiscal 2022 Plan

Fiscal 2023 Plan

* Corporate solutions revenue: Financing-related, business succession and M&A, business matching,corporate life insurances, etc.

‐ 17 ‐

Business Strategies _ Corporate Related II
Key Efforts
 Number of cases for M&As and Business Succession

Although M&A had not reached the plan due to the impact of the
COVID-19, business succession has progressed better thanplanned, with increased inheritance support for the wealthy.

 Staffing BusinessA total of 869 inquiries including 168 contracts since the service started in
April 2020
Started new job-seeking business (career advisor and recruiting advisor) in
October 2021 and focused on staffing for management positions

 ICT Consulting(Number)(Number)(Number)Business succession

Fiscal 2020

Fiscal 2021

As a result of responding meticulously to changes in thebusiness environment for customers such as thedevelopment of remote work environments, both thenumber of proposals and the number of contracts increased.

Number of new inquiries
Number ofcontracts

Fiscal 2022 Plan

 Introduction of Corporate Portal

Fiscal 2020

Fiscal 2023 Plan

From August 2022, the existing internet banking system and its customer base of 18
thousand members are scheduled to transition to the “Corporate Portal”
With the Corporate Portal acting as the starting point, efforts will be made for “DX support
for regional companies,” “data-based proposals and consulting sales,” as well as establishing“a model that introduces customers to external services,” and continue expanding functions
and content

Fiscal 2021

Number of proposals
Number of contracts

Fiscal 2022 Plan

Fiscal 2020

Fiscal 2023 Plan

Fiscal 2021

Fiscal 2022 Plan

Fiscal 2023 Plan

Identifying issues by utilizing digital tools (D) and aiming for proposing communication solutions
with humans (H) acting as agents, providing new customer experience value (H + D)
H+D

D

H

H+D

H+D

H+D

Meeting

ProposalforsolutionsExecutionof solutions(Number)Colleting data
Identifying issues

Provisionof digitalplatform

Fiscal 2019
Fiscal 2017
Fiscal 2018
Fiscal 2016
Fiscal 2020
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Fiscal 2021

Consideringsolutions

Recommendations(Introducing external
services to customers)Issue
solvedUsing digital
services

Account linking (Single sign-on)‐ 18 ‐

Business Strategies _ Corporate Related III
 Providing integrated solutions through cooperation between the Group, partner companies, etc. to improve customer experience value

Key Efforts of the Group Cooperate with Iyogin Leasing tosupport customers in capital
investment

Strengthening consultation capabilities
at the entire Group

Lease
Systemdevelopment
Think tankCredit cards
Venture capital×

Securities

Support inconsideration ofcooperation
with partnercompanies,
external experts,
local public
entities, etc.

 Provide diverse funding sources amid uncertainties such as the
COVID-19 pandemic(Number)Number of leasing contracts via the
Bank’s introduction

Iyogin Leasing (ILC) Cooperate with IDC to provide
settlement services targeting
corporations

Iyogin DC Card (IDC)

Fiscal 2020

Sole Proprietor
Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

Support for funding
Low-cost

Small BusinessGovernance and digitalization

Small andMediumEnterprise

Fiscal 2022 Plan

Fiscal 2023 Plan

Solutions Related to Payments

PointsMedium-sized
Corporation

Supplementary
services

Large Corporation
Business scale Business foundation
 M&A / business succession
 Management improvement
and turnaround Primary industries Staffing
 ICT consulting, etc.

improvement of operational
efficiency

Main Needs

 Diverse and smooth financing
 Business matching Overseas business development
 Manufacturing Efficient use of real estate Asset management
 Risk management

Fiscal 2021

 Provide optimal solutions related to payments in line with the business scale andneeds of the company
 Measures└ Issuance of business owner credit cards in cooperation with Group companies
targeting start-ups and sole proprietors└ Business alliance with BNPL businesses Future measures└ Expansion of B-to-B payment services (purchasing cards and services targeted at
franchises)

Purchasing cards
BNPL

Buy now play later

Business credit cards(with IDC)
Business owner
credit cards

Operations
Erelated to commerce
IDC
payments
partnership

Low-cost payment devices

Cloud service
for expense
calculation

Cloud-based
accounting
software‐ 19 ‐

Business Strategies _ Personal Related I Aim for further deepening and evolving of DHC service to provide integrated solutions for each customer, with the purpose of realizing enhancement incustomer experience value

Development of DHD Brand Strategies■ Promotion visuals were updated from January 2022, in order to convey the Bank’s thoughts andefforts on DHD■ Gathering understanding of customers and fostering change in actions that link popularizing DHD
services and CX

Sophistication of the AGENT App

 Providing new customer experience = improvement in customer experience value (CX) and restructuring ofcontact points with customers
 New channels combining physical and digital aspects, realizing a world where the app and branches sendcustomers to each other

A bank on your palm

Open ordinary deposits accounts
Various applications, issuance of cash cards

Patented Jun. 2021

Sep. 2021

Open time deposits accounts, make deposits, and cancellation

Oct. 2021
Dec. 2021

Appointments, applications for personal loans, inquiries on monthly balanceOpen ordinary deposits accounts without a bankbook and seal

Mar. 2022
Apr. 2022

Electronic delivery function, self-procedure of time deposits

Inquiries for point service and number of free convenience store ATM usages

API for Visa debit statement (instant notice) *First bank in West-Japan

2nd half of 2022 Total renewal of UI/UX of the app (scheduled)Expanding Digital Touch Points
The official YouTube channel has
been viewed more than
2,400,000 times■ Promoting regular usage to create highly frequent contact points with customers and utilize data gained thereof■ Increasing the number of users of the app and therefore expand bank transactions, aiming at long tail revenue

Recognition rate of DHD videos (in Ehime Prefecture)
ViewedMaybe viewed

Do not know

Manned support
Linking with payment
services

Continuous expansionof functions

Highly Frequent Contact
Points with Customers

Communication

Account registered on the AGENT app

Expansion of BankTransactions
Long Tail Revenue

All videos

DHD Vision

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

First Half of Fiscal 2021

Fiscal 2021

Fiscal 2022 Plan

Fiscal 2023 Plan

‐ 20 ‐

Business Strategies _ Personal Related II
House purchasing plan with a smartphone

Simulation tool that allows customers to chart various future plans
Providing value for customers
 To understand how to improve financial health andwhat product or service fits oneself most Finding not only money, but also how to realize
one’s dream Consult with an advisor

Evolving business model By having advance knowledge of users’ life events, it

makes timely proposals for adequate advice andproduct/service possible
 Enhancing appeal for customers in the mass retailcategory, which has been difficult to approach, bycooperation of various channels

New card loan service that issues notifications on insufficient amount“Card loan as an ordinary tool useful in daily life”

 Renewal to card loan “distinctively by bank” in February 2022
 Two types: “Standard,” and “Premium,” which requires an annual income certificate
 Interest rates for the Premium type is based on “risk ranking” instead of the “borrow amount”
 With the ability to start from a smaller borrow amount, then increase the amount whennecessary (approx. 20% of the users have increased their borrow amount)(Number)Number of newcontracts

Fiscal 2020

“From simply product provider to service provider responding to customers’ essential needs”

House Purchasing without Fail

Expending Support as a Housing Loans Infrastructure With HOME TICKET, it becomes possible toformulate a house purchasing plan byidentifying the borrowing amount available
 Progress of utilization of HOME TICKET at theoffices of housing companies

 Achieved 70% of HOME rate* Less administrative workload on customers,
housing companies, and the Bank Expanded usages of “HOME
HOUSE
BUILDER,” targeting housing companies (195
locations as of March 31, 2022)

Cooperation with Different Industries

Renewal of Housing Loans Line-up

 From April 2022, business matching agreements withSUUMO Counter (in Ehime Prefecture) and Ie-zukurigakko
 Ensure customer contact points from the housepurchasing consideration phase Enhancement of housing loans and stronger revenue
from business matching fees

 From April 2022, the longest borrow period becomes
40 years (fixed rates for initial period type) Ongoing special interest rate promotion (minus 0.2%
from other promotions) (until December 2022)
 Scheduled to expand the line-up of group credit life
insurance(Hundreds ofMillions of Yen)

Balance of housing loans
HOME rate*

Drawingin “higher-class” and “needs for additional funds”「優良層」や「追加資金ニーズ」を囲い込み

Fiscal 2021

Fiscal 2022 Plan

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

Fiscal 2023 Plan

Fiscal 2020

Fiscal 2021

Fiscal 2022 Plan

Fiscal 2023 Plan(* Percentage of housing loan application using HOME)‐ 21 ‐

Business Strategies _ Personal Related III
 Deepening and evolving consulting proposals according to the needs at customer’s life stages, and enhance the ability to provide value to customers
Life Stages

Needs

Asset Building Stage (20s - 40s)

▲
Birth

Saving andIncreasing
Preserving andBequeathing▲▲▲▲
Have children Home purchaseStart a job
Get married
Saving and increasing steadily for the future and elder years▲
Children leave home▲
Retire▲Receive pension

Saving and increasing for elder years

Asset Bequeathing Stage (70s -)▲Prepare for Bequeathing

Using while trying to prolong the asset life-span
Preserving money with family and bequeathing assets to family

Preparing

Menu

Asset Using Stage (50s - 60s)

Joining insurances and reevaluating protection in line with life events
Saving and Increasing

Preparing Providing insurance consulting according to needs at all kinds oftouch points.
12 locations in
Branches in Ehime
Ehime
Prefecture*
Prefecture.
*Insurance plaza “Aeon Mall
59 branches 100 staff
Insurance Imabarishintoshi” has closed in May 2022
plaza

Possible to consult
from home

Insurance
consultants

Preserving and Bequeathing

Bank Branch Understanding customers’ “thoughts for caring and inheritance”
 Providing more sophisticated consulting operations utilizing
headquarters function

Cooperation betweenbank and securities

Iyo Bank

Shikoku Alliance Securities

Realizing consulting
according to eachcustomer’s life plan

Onlineconsultation<Level Premium Insurance(Number of Customers and Number of Policies Held)>

Organizing protections for elder years

Case transition from branches

Realizing consulting thatutilizes a wider range of
products for upper classand corporation owners,
etc.

Headquarters (Wealth Advisors)
 Total inheritance support in will writing,testamentary trust , civil trust, etc., and respond to
all kinds of needs.

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

Number of Customers<Number of customers of trust-related contracts*>* Including individual deposits in foreign currencies
The Bank

Shikoku Alliance Securities* Cumulated contract number - number decreased due to death, etc.
(Number)Number of Policies Held

Results

Fiscal 2020

Fiscal 2021

Fiscal 2022 Plan Fiscal 2023 Plan

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

Fiscal 2020

Fiscal 2021

Fiscal 2022 Plan Fiscal 2023 Plan

Fiscal 2020

Fiscal 2021

Fiscal 2022 Plan

Fiscal 2023 Plan

‐ 22 ‐

Business Strategies _ Ship Related I
The Role That the Bank Should Play as a Member of the Maritime Cluster
Environment Surrounding Ship Owners
 Foreign exchange and interest rates  Market position of ocean transportindustries and soaring cost of producing(1) Ongoing weaker yen andnew ships
stronger US dollar(1) Price increases of steel and related(2) Stable yen interest at a low levelmaterials(2) Increase in the need for ships

 Environmental regulations
IMO has adopted a goal of reducing
total GHG emissions by 50% by 2050.

Although increase in income on a US dollar basis in the business model centered in medium- to long- term
regular charters is limited, it is generally a favorable business environment with upward trend in the market/ weaker yen[Relationship between market position of ocean transport industries /
foreign exchange and the ship owner business]
Upward trend in ocean
Downward trend in oceantransport market
transport market〇Increase in the need for chartering ships (=business
opportunities) and long-term charters〇Increase in asset value of ships held
〇Improvement of cash flow due to increases incharter fees in short-term charters/charters related
to market condition
×Increase in the cost of producing new ships

×Decrease in the need for chartering ships and longterm charters and decline of charterers’ credit
×Decrease in asset value of ships held
×Deterioration of cash flow due to decreases in charter
fees in short-term charters/charters related to market
condition〇Decrease in the cost of producing new ships

Weaker yen

Stronger yen〇Effectively increase income on a yen basis due to charter
fees income received in US dollars
×Higher costs in payments in US dollars

× Shrinking income on a yen basis〇Lower costs in payments in US dollars

Our Loan Policies in Line with Solutions in Preparation for Risks of Market Condition Downturn■ Emphasis on a portfolio not overly depending on short-term charters/charters related to market condition and asset
value of ships held
■ Proposing derivatives, etc., that prepare for risks of future fluctuation in foreign exchange and interest rates■ Emphasis on long-term relationships and make judgements on customers’ comprehensive ability in a multilateralmannerFinancial position, operating balance
and market value

Management policy andfuture prospects

Solid relationships
Comprehensive
ability

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

[“Strategy on the reduction of GHG emissions” by IMO]
2008

2023

Base year ofemissions(Note) IMO: International
Maritime Organization(Note) GHG: Greenhouse Gas

2030 Target

40% efficiency
improvement

2050 Target

50% reduction in
total emissions

Long-term Target up to 2100
GHG zero emissions

New regulations on energy efficiency targeting existing ships will startin 2023 to achieve the 2030 target

Efforts to Support Decarbonization in Ocean Transport Loans for ships manufactured by Japanese
shipbuilding yards that have high fuel efficiency <Ratio of ships designed with environmental
initiative in mind in loan cases decided> Initiatives on loans for LNG dual-fuel ships
 Loans for ships following the regulations on
20.5%
energy efficiency starting 2025 in advance (1837.6%
ships including cases not yet executed, loans in
total approx. ¥100 billion decided) Initiatives for Sustainability Linked Loans andTransition Loans
EEDI
Phase 3
EEDIフェーズ3
Dual-fuel
Ships
二元燃料船
Conventional
従来船 Ships

42.0%* In the recent 6 months

Decarbonization in Ocean Transport and Asset Value of Ships
 Relatively high environmental performance Assets with quick turnover rate
Domestic ships on our loans are on average 5
Loans for ships, in principle, have a maximum
years old and are mostly manufactured in Japan,
period of 15 years after manufacture, and mostand have relatively high fuel efficiency
ships are sold by around 10 years old, resulting ina quick renewal cycle for the assets‐ 23 ‐

Business Strategies _ Ship Related II
Loan Balance for the Maritime Industry(Hundreds of Millions of Yen)

Status of Balance Changes by Segment¥1,064.4 billion

For Domestic and Overseas Ocean Transport[Loan balance for the maritime industry]■ Significant increase in newly executed amount due to the increase in number of cases executed and the trend ofships getting larger and higher priced■ In addition, significantly weaker yen* during the fiscal year resulted in an increase in foreign-denominated loan
amounts when translated into yen

For other maritime industries and overseas
For domestic and overseas ocean transport(Hundreds of Millions of Yen)

[Breakdown of changes in balance for domestic andoverseas ocean transport in the second half of fiscal 2021]

(363)

7,684
(191)

[Reference]
September 30, 2021
TTM to US dollar: 111.92 yen
TTM to Swiss franc: 119.88 yen

Compared to March 31, 2022
Sep. 2021 TTM to US dollar: 122.39 yen
TTM to Swiss franc: 132.54 yen+593

Impact from change in exchange rate per yen
US dollar: 1.76 billion yen
Swiss franc: 1.64 billion yen(As of March 31, 2022)

7,091
September 30,
2021* In comparison with the US dollar and Swiss francNewtransactions

Scheduledpayment

Advancerepayment

For Other Maritime Industries

Impact of foreignexchange rates

March 31,2022

■ While the balance for the first half of fiscal 2021 increased due to COVID-19 loans for companies
related to shipbuilding yards and marine equipment, it has remained flat for the period
September 2019

March 2020

September 2020

Solutions the Bank Aims to Provide
Improvement in Risk Consulting
Capabilities Concerning the
Shipbuilding and Ocean
Transport Industries

March 2021

September 2021

March 2022

Deepening into Bank-wide efforts for more appropriate business feasibility
assessments of the maritime industry■Providing methods to control risks for ship owners such as risk hedge measures utilizing financial
derivatives■Consideration of solutions, such as improvement of productivity, for issues marine equipment
manufacturers we have business relationships with are facing,

Improvement in Research and Understanding the industry and advancing efforts to solve problems throughAnalysis Capabilities Concerning wide-ranging cooperation with maritime clusters centered on Tokyo and Imabari■Improvement of market position analysis capability, provision of the analysis data,
the Maritime Industry inand more advanced case evaluation based on data, etc.
GeneralCopyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

For Overseas Offices■ Stable growth despite restrictions on sales activities amid the COVID-19 pandemic
Provision of Diverse Funding
Sources
Enrichment in Activities
Connecting
Domestic and Overseas
Maritime Industries

Implementing syndicated loans based on the framework of the TSUBASA
Alliance, etc.

 Initiatives for Sustainability Linked Loans and Transition Loans Composition of syndicated loans■Loans for higher priced next-generation-fuel ships

Aiming to provide new value unique to the Bank for business opportunities
such as chartering and selling ships■Initiatives for active information exchange with a wide range of maritime
businesses mainly by the Tokyo Desk of Ship Finance Division, linking tobusiness matching and case intermediation‐ 24 ‐

Business Strategies _ Market Investment I
Investment Policy by Risk Category(Risk category)Yen-denominatedbonds
Foreign bonds(with forex hedges
Foreign bonds(without forex
hedges)Domestic andoverseas stocks(including
investment trust)
Alternatives, etc.

(Direction)
Restorebalance

Not change

Decrease
Not change

Securities Performance(Policy for new investment)◎Keep the balance as a bond including foreign bonds 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, thebalance is planned to be restored gradually.
◎Adjust the balance and implement strategic re-balancing according
to the situation while keeping a certain amount to secure stableprofit from carry trading.
◎Sell off stocks held for strategic purposes if the necessity of holding
is not recognized.
◎Purchase stocks held solely for investment purposes of which
growth is expected in the medium- to long-term view.
◎ Consider investment to secure stable carrying and portfolio
diversification.

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

Total Yield(Domestic
currency yield)(Foreign
currency yield)(97)
March 2022

March 2021

Total for last 10 years(right axis)

Portfolio Risk Sensitivity and Duration

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

(Hundreds ofMillions of Yen)

Yen-denominatedbonds■Portfolio risk sensitivity (As of March 31, 2022)◎Yen-denominated bond portfolio◎Foreign bond portfolio (with hedges)◎Foreign bond portfolio (without hedges)◎Stock portfolio Nikkei Stock Average

3,350(Of which, JGBs)

10BPV
10BPV
10BPV
¥1,000V¥2.8 billion¥1.8 billion¥1.8 billion / Exchange portfolio exchange ¥10V ¥24.5 billion¥9.9 billion■Duration
10 years
8 years
6 years
4 years
2 years

March 2020

March 2021

March 2022

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

March 2024
(Expected)

0 years

Yen-denominatedbonds

March 2019

Foreign bonds (with forex hedges)

March 2020

March 2021

March 2022

March 2024
(Expected)‐ 25 ‐

Business Strategies _ Market Investment II
Status of Foreign Currency Investment and Procurement[March 31, 2022]

Loan Balance Plan [Financial Market Business Office](Hundreds ofMillions of Yen)

<貸出金+市場運用(有価証券)><Loans+ Market Investment (Securities) >Year-end balance

Mainly assets with high liquidity

Securities, etc.

Loans

Investment

Mainly assets with low liquidity

Procurement
March 2020

March 2021

March 2022

Long-term
procurement

Deposits, etc.

Portfolio by Region and Industry [Financial Market Business Office]

11.2%
12.4%

<貸出金のみ><Only Loans>

4.1%

Short-term procurement is conducted for substantial short-term loans

8.1%

10.2%
10.6%

11.4%
10.7%

14.6%
14.8%

Loans

Investment

11.0%
10.7%
58.3%
57.3%

Repo procurement

Choose foreign currency procurement methods in line with asset
composition

March 2024 (Plan)

5.5%

Short-term
procurement

56.7%
55.6%
Procurement

10.9%
10.9%

Deposits, etc.

Loans with multicurrency terms

Stability gap is positive
Liquidity gap is negative(excessive investment)(excessive procurement)
Long-term
Commitment line
procurement
Cash flow risk is guaranteed with commitment lines■Japan ■North America ■Asia/Oceania■Europe ■Other■Electricity and gas■Various services

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

■Transportation■Finance■Manufacturing■Other(*) Stability gap: Loans, etc. - (Deposits, etc. + Long-term procurement)(*) Liquidity gap: Loans, etc. - (Deposits, etc. + Long-term procurement + Commitment line)‐ 26 ‐

Cross-Sectional Efforts Supporting Business Strategies _ BPR Strategy I
Cashless Processing (cooperation with groupcompany)

Digitization and Simplification of Administrative Work■ At bank branches, promotion of utilizing "AGENT" Tablet has shifted approx. 40%

Bank Branchof reception-related administrative works at the counter toward digitalplatforms
Number of use: 23 thousand cases
AGENT tab
AGENT app
(Usage rate: 90.6%)■ Outsourcing cash management business at bank branches
to group company (IBS), etc.

Iyo Bank
ATM in theprefecture

Patent No. 7026274

41%

×

corporate customers■ In February 2023, system renewal at bank branches andsophistication of Satto ATM is scheduled<Main measures>

Evolving
into an app■ Simplifying procedures such as opening an account, application forinternet banking for corporations, and remitting to a “QR-code attachedslips/applications” and lower the load of administrative work on both[Internet banking forsides[Remitting with QR code]
corporations]
AGENT for
Usage rate
Promoting usage by
Business

Expanding the Area of Headquarterscentralized Operations

Satto (Quick)ATM
ExchangemachineThe Iyogin Business Service(IBS)
Deposit machineat lobby

Open cashiers■Introduced remote monitoring
system→ Shifting cash checking to theheadquarters

Remotemonitoring

Headquarters<Centrally keeping retained documents><Going paperless and using RPA for automation for operations at the headquarters> ■ From April 2018, documents stored in bank branches are
immediately transferred to Shigenobu Document Center for■ With in-house development structure to accelerate further reduction ofcentralized storage
headquarters operations■ This time, centralized storage has started for documents that
Paperless and digitalization
Automation by robots
had been stored in the headquarters
DB: more than 200
Thoroughly digitalize
RPA: 113 robots
projects
In-house[DB development team]

Expanding areas of
RPA automation
by digitalizing

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

In-house[RPA development team ]Transition to database

Paper-based
documents stored ateach division

Centralize storage
location

Sophistication of Satto ATM

Centralize seal registration→ Realization of centralizing slips handled on the day to theheadquarters→ Realization of paperless handling for deposit andwithdrawal, and remitting→ Downsizing number of branch terminals (UBT) (targeting
cutting by half)

Efforts for Improvement of Operational Efficiency andProductivity at Headquarters

Stop storing paperbased documents

Linking data with AGENT,etc.

Gradually expanding number of branches outsourcing suchservices mainly in Ehime Prefecture→ Aiming to minimize administrative work handling cash atbank branches

paper-base workflow

System renewal

Cutting down
administrative costs
and cost of spaces

Downsizing of administrative
staff (expected)

Approx. 156
staff members<Consolidate Headquarters Operation(general affairs operations) >■ Operation started from August 2021
■ Consolidate general affairs operations in theheadquarters■ As the Bank is transitioning to a holding company
structure, consolidated operations are expanding
Expense payment
Stationery
Mailmanagement
management

Centralize‐ 27 ‐

Cross-Sectional Efforts Supporting Business Strategies _ BPR Strategy II
Effect of Reduction Due to Ongoing BPR Measures
Bank branch administrative staff (in charge of operations):
Minus 341 Administrative Staff■Minimize back office work
■Shift surplus humanresources to problem solving
for customers

Fiscal 2017

Fiscal 2021 Fiscal 2023

Fiscal 2021 Fiscal 2023

<Goal>
Fiscal 2023: 350 staff
members

Effect of headquarters workload reduction:
133 Thousand Hours/Year Reduction
200 Thousand hours ■Minimize “administrative
work“ at headquarters andshift surplus human
133 Thousand hours
resources to “planning”
operations<Goal>
Fiscal 2023: 200 thousand
hours reduced/year
Fiscal 2017

Fiscal 2018 Medium-Term
Management Plan

Fiscal 2021 Medium-Term
Management Plan

■ Since Fiscal 2015 Medium-Term Management Plan, BPR strategies have been
positioned as an important task for increasing productivity, and a range of BPR
strategies have been developed based on research on administrative workload<Yearly working hours (per person)>
2,116 hours

2,200<Goal>
Fiscal 2023: 800 staff
members

Bank branch administrative staff (in charge of loans):
Minus 29 Administrative Staff■Centralize “administrative
work“ for loans and shift to"decision-making” work

Fiscal 2017

Fiscal 2015 Medium-Term
Management Plan

<Higher awareness on BPR by employees and officers>→ Contribute to work style reforms
1,931 hours

In 2015, yearly working hours were 2,116 hours→ In 2021, it was reduced to 1,931 hours

1,800

2015年
2015

2021年
2021

To Increase Productivity of the Entire Group(Horizontal Expansion of Insights on BPR to Group Companies )Digitalization

Lease
Business
services

Securities

Guarantee

CapitalData utilization
Paperless■ As the Bank is transitioning to a holding company
structure in October 2022, continue to accelerate
improvement on productivity of the entire Group

Headquarters-centralized
RPA / automation

Creditcards

Bank

SystemRedistribute surplus human resources
to business strategies to realize
problem solving for customers

Think tank

Fiscal 2021 Fiscal 2023

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

‐ 28 ‐

Cross-Sectional Efforts Supporting Business Strategies _ IT Plan
Efforts for Optimization of IT Investment<Current situation>

Number of Persons with Capacity to Utilize Data Analyzing Tool

<Direction to aim forin the future>

Classify investment costs
into strategic investment
and base

Base

Initiatives■Invested base cost
→ Areas to be reduced

Aims■ Visualize IT assets (operational functions and systemcomposition, etc.) and develop criteria for IT asset renewal
and disposal■ Prioritize IT investment and development projects withconsiderations on both sides of investment amount(money) and development (human)■Refine long-term IT cost forecasts by developing along-term renewal plan

As the Bank is transitioning to aholding company structure, aiming for
optimization of IT investment andenhancement of IT governance of theGroup as a whole■Rule setting such as priority■Strategically consider
budgetary measures■Preventing IT assets frombloating■Optimization of resource
distribution and IT investment
based on overall optimization■Appropriate control of IT costs

Roles ofIT organs

Optimizationof IT
investment

IT
GovernanceIT personnel

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

IT
asset
management

Data
Risk
management

Number of Marketing Scenarios** e.g., data on corporations’ distribution channels,
information on retirement benefits and inheritance, etc.

← Investment limit

Strategic

IT costs are on the risedue to strategic
investment

Development and Improvement of Data Utilization System

98 persons

5persons
April 2011 (at the introduction)

March 2022

 To conduct different types of data analysis andutilization in large volume, personnel for using data
analysis tool is developed through trainings by
specialized departments
 Aiming to expand personnel with data analyzing
capacity and improve data utilization

64 cases

3 cases

April 2011 (at the
March 2022
introduction)
 Developing an environment capable of conducting
different types of data analysis and utilization in large
volume through participation in Collective MCIF
Center Utilizing different kinds of data and realize contacts
with customers based on the marketing scenario Efforts to increase sales activities based on data

Creating a virtuous cycle where customer experience
improves by continuous efforts in sophistication ofdata analysis and utilization
Improve customer experience at allkinds of channels

Creating and refining touchpointsCollecting more data on activities
resulted from better experience

Collect fresh data and analyze‐ 29 ‐

Cross-Sectional Efforts Supporting Business Strategies _ Branch Plan
Review the locations and functions ofexisting channels and advanced use thereof

Review the channel functions in line with customers’changes in lifestyles

Branch plan visioning 10 years into the future /rebuilding channels of contact points with customers

Review of Branches and ATM Locations

AGENT app * Released June 2021

Contact Points with Customers (Expected)

150
140

142
650

134
635

130

130
530

120
110

Bar: Number of branches
Line: Number of ATMs

148

650

128
527

750

524

March
March
March
March
March
2019/32024
2020 2021/3
2022 2024/3
2019 2020/3
2021 2022/3
計画
Plan

550
450

■Sorting out excessive branches while maintaining points ofcontact with customers■Reducing the number of installed ATMs against a backgroundof increases in cashless settlements

Review of Branch Functions■ Introduction of the Group Head system
Core branches (full-service banking): 28 branches
Linked branches (branches specialized in individual
services): 57 branches■ Shift to labor-saving branches
Branches located in government offices: 5 branches■ Review of business hours
Extension of business hours: 33 branches
Adoption of lunch break: 7 branches

Advanced Use of Branches<Fukuoka Branch><Nagoya Branch>■Released AGENT app that can provide thesame customer experience as at a counterreception* A new banking app that utilizes thevideo chat function

Iyogin SMART * Released August 2021
■Newly establishing micro branches for the
purpose of maintaining contact points withcustomers<Branches>
Nakayama and Kaminada(2 branches)■ Newly establishing branches specialized intransactions to respond to customers’
diversified needs

2021年8月導入(2店舗)■Shiftto Next-generation Branches with Satto Madoguchi (Quick
中山・上灘Counter)and AGENT system
128

45
20

101

Change of lifestyles
Better IT literacy

apps
IB, etc.

Current

Visitingbankbranch10 yearsfrom now■Since the COVID-19 pandemic, contact points with customers havechanged drasticallyRebuilding Channels of Contact Points with Customers

店舗(リアルチャネル)の強みを活かし、人”対
Digital Channels
Real Channels
Anytime and anywhere,面” でしかできない価値提供力を高める
at customers’
Place for consultationand problem solving

Branches and ATMs

AGENT app and IB■Daily use transactions are mainly conducted by digital channels easily
and conveniently, while value-added operations that only humans canprovide are implemented by real channels, which is the strength ofregional banks

Enhancement on Digital Channels

65■ Enhancing content publishing on financial knowledge and

43
March
March 2020/3
March 2021/3
March 2022/3
March 2024/3
2019/3
2024
2019
2020
2021
2022
計画
Plan

IB, etc.

Prevalence of cashless
payment
Visitingbank 40% decrease in customers Visiting Depopulation and lessbranchbank preference for over-thevisiting bank branchbranch counter communications* Gradually introduced from April 2018

90

apps

10% decrease in ATM
usage

Introduction of Next-generation Branches

120

Sophistication of digital channels

convenience<Branches to be introduced>
Wake, Johoku, Kuwabara, and Awai
(4 branches)

70

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

IB, etc.

Expanding usage of apps
and internet banking

Past

Iyogin SMART plus * Scheduled to release August 2022

95

■Based on regional needs, renovating branches toinclude rental spaces targeting at third parties tocontribute to liveliness

Building digital channels

Kawanoe Branch is scheduled
to open in July 2022

regional attractions, the Bank’s content publishing approachis ranked at first place at the Overall category at the “Gomez
Regional Bank WEB Site Ranking 2022” (Among 99 banks)‐ 30 ‐

Cross-Sectional Efforts Supporting Business Strategies _ Personnel Development Plan
✓ Aiming to become a Group creating and providing diversified value by developing personnel who can work actively in areas of theirexpertise under a basic idea of "originating from customers"■Policy for digital business personnel development
Improving Base Skills
Personnel with an Area of Expertise

Base
SkillsSupportRisk management

Planning

Technology

MarketShip

Individual

SpecialskillsCorporation

 Review of personnel system
Classify specialized skills into eight career fields

Basic operation knowledge and skills/
Finance and IT literacy/Business skills/
Common sense and morals , etc.

Establishment of an Environment Which
Facilitates Autonomous Learning Implementing online training and start of shorterclasses on demand Education and training apps for all new employees Expansion of online learning tools

Responses to Diversifying Careers
 Introducing training programs by business (field) open
to all employees
 Conducting level-based workshops across the Group Promotion of challenges to advanced qualifications
 Continuation and expansion of qualification acquisition
incentive system

Improving Special Skills
Technology
 Attending cloud-related training→ Improving IT-related skills

Planning (Digital Business)
 Redefine and clarify development policies

 Skill Compass Level 3 or higher→ Improving the skills of developers

 Sorting according to level into “Starter,”“Operating Personnel,” and “High Level
Personnel”

Corporation/Individual/Ship/Planning

Market Dispatching employees for corporate
academy training→ Training program for young employees Dispatching employees on assignments
outside the Group→ Acquisition of external expertise Short-term dispatch training in the Funds
Operation & Securities Division
 Securities analyst certification holders→ 71 persons (As of March 31, 2022)

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

High Level Personnel

Personnel with high levels of expertise in digital planning and design, anddata analysis, etc., capable of leading projects and operations, andguiding and supporting operating personnel
Improvement on higher-leveled and more professional skills

Operating Personnel
Personnel with knowledge in digital planning and design, and data
analysis, etc., capable of smoothly promoting projects and operations
 OJT, external training and secondment
 Training related to data utilization
 Practical training on digital business
Improvement on practical skills(Targeting 50 trainees at the end of March
2024)

Starter
Personnel with basic knowledge in digital affairs and digital literacy
 TSUBASA Joint training for digital personnel

Improvement on base and extra  Digital Business Basic Workshop, short-term trainees(Targeting 136 trainees at the end of March 2024)
skills
Improvement on base skills

 Making Information Technology Passport a requirement
for promotion
 Digital business learning (Training and testing by videos) Correspondence course, seminars on day-offs, and DIA
testingBase‐ 31 ‐

IndexI. Summary of Earnings for Fiscal 2021
II. Transition to Holding Company Structure
III. Main Strategies and Progress of Fiscal 2021 Medium-Term
Management Plan
III-1. Major Numerical Targets of Medium-Term Management Plan
III-2. Progress of Business Strategies and Plan
III-3. Efforts for Sustainability
III-4. Profit / Loss Forecasts and Capital Policy

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

‐ 32 ‐

Efforts for Sustainability I
Response to the TCFD Recommendations
 Risk Management

 GovernanceSupervision

The Board of Directors■ Supervision of important sustainability matters including environmental
and climate change

Supervision

Reporting

Sustainability Committee (Established in February 2022)■ Discuss the content and information disclosures related to sustainability
matters including environment and climate change initiatives

Instruction

Execution

Subsidiary Meeting Bodies
Local Economy
Revitalization
Subcommittees

Sustainability
Subcommittees

Discussion andReporting
CSR Promotion
Subcommittees

Amendment and Publication of Investment and Loan Policy

Policies oninvestments andloans forspecified sectors■ Investments and loans for coal-fired power generation⇒ Prohibition on initiatives of investment and loan for funding for the
purpose of construction of new coal-fired power plants

Integration intobusinessfeasibility
assessment

Understanding Business Partners’ Measures against Climate Change and Initiatives
for Preserving the Environment■ Adding items concerning environmental friendliness (business status inconsideration of climate change and environment) as evaluation items in
the “business feasibility assessment,” which the Bank has put efforts into

 Benchmark and Targets[Sustainable finance target]

Cumulated transaction amount from fiscal 2021 to fiscal 2030:¥ 1,400.0 billion (including ¥700.0 billion in the environmental area)[CO2 emission reduction target]

50% reduction by fiscal 2030 (compared to fiscal 2013)

 Strategies

Reduction rate
(combining Scope 1 and Scope 2)(Unit: t-CO2)

Start of Consulting Operations for Measures against Climate Change
Opportunity Started handling "ESG/SDGs Finance" and “green bonds“ Support for visualization of CO2 emission through collaboration withexternal organization
 Comprehensive alliance agreement with local electricity companies for
decarbonization

Conducted Scenario Analysis Concerning Physical Risks

Risk■ Estimated an increase in credit costs, etc., resulting from damage incollateral real estates and interruption on business caused by flood■ Estimated risk amount up until 2050:
RCP 2.6 Scenario (2˚C Scenario) ¥4.6 billion
RCP 8.5 Scenario (4˚C Scenario) ¥7.5 billion

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

Fiscal 2013

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2030

‐ 33 ‐

Efforts for Sustainability II
Sustainable FinanceCollaboration Agreement to Support Initiatives toward Local Carbon Neutrality■ Started handling "ESG/SDGs Finance" and “green bonds" in April 2021
→ Supporting customers’ efforts toward sustainable management, which is ofincreasing social interest
ESG/SDGs Finance and Green Bonds—Financial support for customers’ sustainable management sophistication —Green loans

Transition loans

Sustainability linked loans

Green bonds■ In February 2022, the Bank entered into a collaboration agreement with Shikoku
Electric Power Company, Incorporated to support initiatives toward local carbon neutrality
Overview of Alliance1. Providing information and proposals to support initiatives toward carbon neutrality
2. Introducing products and services, etc., that the two companies (including Group
companies) provide to support initiatives toward carbon neutrality
3. Development of products and services, etc., to support initiatives toward carbon
neutrality
4. Activities raising awareness to support initiatives toward carbon neutrality

 CO2 Emission Calculation Service
 ESG/SDGs Finance Iyogin SDGs Advisory Service

Sustainable Finance Executed■ Transaction amount in fiscal 2021: ¥92.6 billion (including ¥60.9 billion in the Of which, key sustainable finance projects

environmental area)

Renewable energy businesses related¥49.4 billion

ESG/SDGs finance and green bonds¥9.0 billion

Private placement bonds (environmental private placement
bonds and SDGs private placement bonds, etc.)
Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

 SDGs Card Game

¥11.4 billion

Provide powerful support for
carbon neutrality measures
for the local
communities

 A menu of renewable energies utilizing
non-fossil fuel energy certificate
 Developing renewable energy (onsite PPA,etc.)
 Energy solutions (energy conservation andreduction of CO2 emissions) Support local governments to formulate
carbon neutral plans Electrifying mobility‐ 34 ‐

Efforts for Sustainability III
Revitalization of Local Economy by Business Foundation Support
Number of Business Foundation Support
March 2020

March 2021

March 2022

Business foundation planning support

255

370

352

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

72

303

217

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

50

17

19

Of which, venture companies registered for grants
or investments

25

24

18

*Businesses within 3 years of establishment are counted■ Continuing from last year, the Bank supports the operationalization of customers during thestart-up period, centering on “start-up loans”

Revitalization of Local Economy by Crowdfunding[Number (cumulative)][Number by category]Businessfoundation
Total
18

65
cases

Second halfof 2018First halfof 2019

Second halfof 2019First halfof 2020

Second halfof 2020First halfof 2021

Second halfof 2021

New
products
andservices
24

Regional
revitalization
23■ The Bank subsidizes part of the fees paid by customers to crowdfunding companies tosupport projects on starting business and regional revitalization in Ehime Prefecture
Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

“Demonstration Experiment on Combined Passenger and FreightTransportation*” using Railways
Collaborating with Shikoku Railway Company and Yamato Transport Co., Ltd.,the Bank Supports Development of a New Framework in Logistics■Purpose✓ Utilizing the punctuality and speediness of railways to create new value✓ Promotion of a framework that transports cargo by railways, which puts less stress on theenvironment (modal shift)✓ Initiatives for regional revitalization by connecting manufacturers in the prefecture and consumers

Shikoku
RailwayCompany

YamatoTransport
Co., Ltd.

Iyo Bank* While usually referred to as “combined freight and passenger transportation,” theBank agrees with Yamato Transport Co., Ltd.’s view that “priority is on passengers
when transporting freight on passenger trains,” therefore referring to it as“combined passenger and freight transportation”

Collaboration with Ehime Prefecture and Japan Manned Space Systems
Corporation
Entering “Comprehensive Collaboration Agreement to Promote
DX with Industries That Utilize Space Technology”■ Overview of collaboration✓ DX utilizing space technology✓ Matching with companies in the Ehime Prefecture✓ Responding to consultations on development of spacetechnology and taking part in space industries

Ehime
Prefecture

Japan Manned
Space Systems
Corporation

First in regional banks
nationwide

Iyo Bank‐ 35 ‐

Efforts for Sustainability IV
Health Management

Diversity
TSUBASA Diversity and Inclusion Declaration■ Formulated a joint declaration at TSUBASA Alliance to further enhance initiatives
toward diversity and inclusion
TSUBASA Diversity and Inclusion Declaration
In order to realize sustainable growth in the region, one of the objectives of the
Alliance, TSUBASA Alliance, we declare that we will position diversity and inclusion as
the source of our competitiveness and actively work on it.
A framework of regional bank wide-area collaboration in which 10 banks participating from Chiba Bank,
Daishi Hokuetsu Bank, Chugoku Bank, Iyo Bank, Toho Bank, Hokuyo Bank, Musashino Bank, Shiga Bank,
Bank of the Ryukyus and Gunma Bank

Female Manager Ratio/Average Years of Service■ Female manager ratio andaverage years of service→ Increasing steadily year afteryear■ Putting efforts in cutting down on overtime hours, lending out wearable devices free-of-charge,
and mandatory health checkups, etc., the Bank has been recognized in the Certified Health &Productivity Management Outstanding Organizations Recognition Program for five years
consecutively■ Ratio of health checkups taken by■ Ratio of employees who exercise regularly

employees 40 years old or older

2019

2020

2021

2019

2020

2021

22.8%

23.2%

24.5%

92.6%

100%

100%

Work Style Reforms■ Change in paid leave utilization rate
Paid leave utilization rate is steadily increasing

March 202012 years
and
11 months

12 yearsand4 months

11 yearsand8 months

March 2021

March 2022

Promoting Mid-career Hires to Managers■ Mid-career hires who qualify
for business management andbusiness operations→ Increasing steadily year
after year

Recognized in the 2022 Certified Health & Productivity Management
Outstanding Organizations Recognition Program (large enterprise category)Businessmanagement

Business
operations

67.1%

69.6%

73.3%

January to
December 2018

January to
December 2019

January to
December 2020

January to
December 2021

Engagement

General hire

March 2020

5 personsMarch 2021

6 persons27 persons

11 persons

March 2022

7 persons28 persons

9 persons

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

65.2%

23 persons

13 persons

Number of mid-career hire employees■ Officially introduced wevox, an engagement detection tool
Implementing the PDCA cycle for improvement in engagement for the purpose of“creating a working place that employees take pride in,” which is based on a “satisfying
working environment” that builds on health management and work style reforms‐ 36 ‐

Efforts for Sustainability V
Environmental Protection

Contribution to Local Communities

Iyo Bank
Evergreen Forest
Established in 2008 (14th year)
Under the "Agreement on Forest Creation
Activities" which was entered into with Ehime
Prefecture, Ozu City and Forest Fund of Ehime,
we are making efforts to foster forests in four
locations in Ehime Prefecture.

Iyo Bank Environment
Foundation “Evergreen”(public trust)

Established in 2008 (15th 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 ¥65
million to 179 recipients.

Fiscal 2021 ”Tada Eco-group Tanpopo”

Iyo Bank Social Welfare Fund
(Public Interest Incorporated
Foundation)

Iyo Bank Regional Cultural
Activity Assistance Program
Established in 1992 (31st year)
Applications are invited twice a year from Juneto July and from December to January

Established in 1976 (47th year)

We support improvement in social welfare and humanresource development for the next generation in Ehime

We grant part of funds for
activities of parties whichcarry out “grassroots”
cultural activities in Ehimeand granted a total of ¥247
million to 1,274
organizations. In addition,"special applications"targeting organizations
damaged by the heavy rainin July 2018 are also invited. 60th recipient “Matsuyama Keiun-kai”

Granting scholarships to highschool students in single or noparent families

Employment subsidies forchildren living in child welfare
institutions, etc.

Iyo Bank Social Welfare Fund
(Public Interest Incorporated Foundation)
Donation of social welfare
equipment to social welfare
institutions, etc.

Donation of subsidies for buying
books to high schools, etc.

Iyo Bank Evergreen Forest (Matsuyama City)

Diversity

Iyogin Challenge & Smile

Started in 2007 (15th year)

Established in 2018 (5th year)

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

YouTube Videos

Iyogin Financial
Education Class
SDGs Card Game
Started in 2021 (2nd year)

Iyogin Regional Economy
Research Center isconducting "2030 SDGs
Card Game" training for
local companies andorganizations. Anyone caneasily learn "why SDGs areneeded" and "how SDGs
are relevant to us" while
experiencing in a gameformat.

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

Iyogin is
supportingchildrenSeminars for kids
Seminars for learning aboutbank mechanisms and healthyfinancial literacy

Publishing videos on themes suchas lowering the age of adulthoodand banking operations

Iyogin Junior
Mirai Juku

Lesson program in line withschool curriculum guidelines
and financial literacy map‐ 37 ‐

IndexI. Summary of Earnings for Fiscal 2021
II. Transition to Holding Company Structure
III. Main Strategies and Progress of Fiscal 2021 Medium-Term
Management Plan
III-1. Major Numerical Targets of Medium-Term Management Plan
III-2. Progress of Business Strategies and Plan
III-3. Efforts for Sustainability
III-4. Profit / Loss Forecasts and Capital Policy

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

‐ 38 ‐

Profit / Loss Forecasts for Fiscal 2022
✓ Core business gross profit is projected to be ¥79.5 billion, a decrease of ¥5.0 billion year on year due to a decrease in interest and dividend income owing toan increase in foreign currency procurement costs and a decrease in other operating income✓ Despite profit decreasing at each profit stage, net income is forecast to continue at a high level at ¥21.5 billion[Nonconsolidated results(Units: Billions of yen)]

Fiscal 2021 results
Intermediate
results

Factors Contributing to Increase / Decrease in Core Business Gross Profit(Fiscal 2022 - Fiscal 2021)

Fiscal 2022 forecast
Intermediate
forecast

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 theactual profit amountCore business gross profit

41.8

84.5

40.7

(1.1)

79.5

(5.0)

Of which, interest anddividend income
Of which, fees andcommissions

36.8

72.4

35.7

(1.1)

69.5

(2.9)

3.2

6.2

3.1

(0.1)

6.5

+0.3

Expenses (-)

24.3

49.0

24.7

+0.4

49.0

+0.0

Of which, personnel
expenses
Of which, nonpersonnel
expenses

12.9

25.8

12.6

(0.3)

25.5

(0.3)

10.2

20.6

10.4

+0.2

20.5

(0.1)

Core business net income

17.5

35.4

16.0

(1.5)

30.5

(4.9)

Credit costs (-)

3.5

4.2

3.2

(0.3)

5.0

+0.8

Fees andcommissions(¥6.5 billion)

Gain (loss) related tosecurities

3.9

1.1

1.5

(2.4)

3.5

+2.4

+0.3

Ordinary income

19.7

35.2

16.0

(3.7)

32.0

(3.2)

Other
(¥3.5 billion)

Net (intermediate) income

14.0

24.6

11.0

(3.0)

21.5

(3.1)

(2.4)

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

Core businessgross profit(¥79.5 billion)(Units: Billions of yen)

Gain on loan
management(¥48.2 billion)+0.0

Interest anddividend income(¥69.5 billion)

Gain on securities
management(¥21.0 billion)

(2.9)

(2.5)

Volume factors +0.4
(Average loan balance up ¥37.9
billion)Yield difference factors (0.4)(Yield difference down 0.01%)
Volume factors +1.5
(Average loan balance up ¥62.0
billion)Yield difference factors (5.4)
Gain on fund cancellation factors +1.4

(5.0)

Other
(¥0.2 billion)(0.4)… Increase in revenue on assets in custody, solution-related fees, etc.

… Decrease in gain (loss) on foreign exchange transactions andgain (loss) on derivatives‐ 39 ‐

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

Dividend and Shareholder Return Policy■As priority is put in fulfilling the responsibility of a stable dividend policy, dividends for■ Basic policy and response status of cross-shareholdings
Basic
policyReduce→ The Board of Directors verifies the rationality of holding atleast once a year

the fiscal year ending March 2023 (120th term) is planned to be the same as previous
year at ¥16 per annum
Ordinary
dividend(Yen)

Policy on holding is set through the evaluation matrix of "investment side" and "policy side”
for all 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)]

Tier 1 ratio*(right axis)

March
2011

March
2012

March
2013

March
2014

March
2015

March
2016

March
2017

March
2018

March
2019

March
2020

March
2021

March March 2023
2022
(Plan)■Purchase of treasury stock
In order to enhance profit return, improve capital efficiency, and enable flexible capital
policies, it has been decided to purchase treasury stock Type of shares (to be) purchased Total amount of shares (to be) purchased

March
2016

March
2017

March
2018

March
2019

March
2020

March
2021

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

March
March
March
2022
2023
2024
(* Tier 1 excludes components ofcomprehensive income)Common stock
5,000,000 shares (Upper limit)(1.57% of total number of issued shares (excluding treasury stock)) Total amount of purchase price¥3.0 billion (Upper limit)
 Method of purchaseThrough market purchase at the Tokyo Stock Exchange Purchase period
May 16, 2022 to July 29, 2022
‐ 40 ‐

■ Future business results contained in this document are based on information available as ofannouncement and assumptions regarding uncertain factors that may affect future business results.
■ 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 © 2022 THE IYO BANK,LTD. All Rights Reserved.

Iyo Bank Fiscal 2021 Earnings Briefing(April 1, 2021 – March 31, 2022)

Reference Materials

Iyo BankJune 3, 2022

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

Status of Market Investment and Risk Management

Pg◎Main Industries in Ehime Prefecture

5◎Management by Risk Category: Securities Investment

15◎Manufacturing Industry in Ehime Prefecture

6◎Balance of Investments by Region and Sector: Financial Market Business16◎Industrial Structure of the Setouchi Region

7◎Status of Integrated Risk Management

17◎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 © 2022 THE IYO BANK,LTD. All Rights Reserved.

‐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, 2,670 employees (excluding temporary staff)
151 domestic (including 22 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)

14.32%

Consolidated subsidiaries

16 companies

Consolidated employees (excluding temporary staff)

3,044 persons〈As of March 31, 2022〉

Copyright © 2022 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:
Timing of opening key branches outside of Ehime
Number of branches
9 branches
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)

151 domestic(including 2 Iyogin SMART branches)(including 22 branches within branches)

Okayama
Hiroshima

Yamaguchi

Osaka
KagawaFukuoka

Within Ehime:
119 branches
Oita

Kyushu region:
8 branches

Kinki region:
5 branches

Tokushima
Kochi

Shikoku region, excluding Ehime:
7 branches

11 prefecturesin the Setonaikai region
Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

1 overseas

Hyogo

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

Consolidated Earnings
Summary【Consolidated】

Fiscal 2021

Ordinary revenue
Ordinary income
Profit attributable to owners of parent

133,971
38,23926,417YoY

9,154
12,067
8,329

Iyo Bank

Head office and142 branches,
9 sub-branches, and13 consolidated
subsidiaries

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

Investment business to agricultural companies

Iyo Evergreen Agriculture Support Fund Investment Business Limited
Partnership II

Investment business to agricultural companies
Investment business to business succession targets
Investigation and research business regarding industry, economics, finance, etc.

Iyogin DC Card Co., Ltd.

Credit card business, guarantee business, etc.

Iyogin Challenge&Smile Co., Ltd.

Manufacturing business for office supplies, etc.
Lease business, etc.

Leasing business1 consolidated subsidiary

Iyogin Leasing Company Limited

Other

2 consolidated subsidiaries

Iyogin Computer Service Company Limited
Shikoku Alliance Securities Co., Ltd.

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

Investment business to sixtiary industrialization bodies

Iyo Evergreen Agriculture Support Fund Investment Business Limited
Partnership

Iyogin Regional Economy Research Center, Inc.

(As of March 31, 2022)

19,8293,005
1,757

The Iyogin Credit Guaranty Company Limited

Iyo Evergreen Business Succession Support Fund Investment Business Limited
Partnership

4 non-equity method affiliates

124,817
26,172
18,088The Iyogin Business Service Company Limited

Iyo Evergreen Sixtiary Industrialization Support Fund Investment Business
Limited Partnership

2 non-consolidated non-equity method
subsidiaries+7.3%+46.1%+46.0%

Consolidatednonconsolidated
Difference (Note)(Note) The difference between consolidated and nonconsolidated.

List of Iyo Bank Group Companies
Banking business

Increase/
Decrease

Fiscal 2020

Iyogin-Ehime University Originated Venture Support Fund Investment Business Limited
Partnership
Iyo Evergreen Business Succession Support Fund Investment Business Limited
Partnership II

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)
No. 1 in Japan

No. 1 in Japan

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…Total national share of Ehime Prefecture

Matsuyama Region

61.5%(¥32.9 billion)(Note 2)The Matsuyama region has companies with large
shares in products such as “small once-throughsteam boilers,” “farm machinery,” and “dried bonito
shavings.”(Note 2)

Uwajima Region
13.4%(¥58.6 billion)

No. 1 in Japan(Note 2)

Sea culture industry (2020)¥436.8 billion total national
production

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.

•(Note 1) Iyogin Regional Economy Research Center, Inc. (IRC) estimates; the ranking in Japan excludes operators.
•(Note 2) Ranking of Ehime Prefecture
Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

Uma (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) andthe Ministry of Agriculture, Forestry and Fisheries’ “total fishery output for 2020.”‐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％
Others6.3％

Transportation
machinery

8.2％
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).
Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

Generalpurpose
machinery

16.8％

Beverages,
tobacco,and feed

Production
machinery

8.5％

Nonferrous

Saijo
metal
¥794.7 billion

46.3％

Steel

13.8％

7.5％

Plastics

8.9％

Others 3.3％

Production machinery 3.8％
Others

10.2％
Plastics
Nonferrous
metal

42.3％
Niihama¥850.0 billion

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, ocean transport,
oil, towels and garments
Automotive, shipbuilding, electronics

Okayama
Hiroshima

Electronics, farm machinery,
chemicals, tourism

KagawaImabariNiihamaMatsuyama Saijo

Citrus, food processing

Shikokuchuo
Paper manufacturing andprocessing

Ozu
Yawatahama
Oita

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

Chemicals, electronics,
nonferrous metal, generalmachinery

UwajimaSteel, automotive, electronics, tourism

Shipbuilding, textiles

Culture fishery‐7‐Economic Indicators of the Setouchi Region I

January 2022

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

Number of employees(Private sector,
excluding public
sector)2016(Km 2)(Offices)(Persons)

Total population(Population estimate)

Total area (Geospatial
Information Autorityof Japan)

October 2020
(Persons)

Ehime
KagawaTokushima
Kochi
Oita
Fukuoka

1,334,841
950,244719,559
691,527
1,123,852
5,135,214

5,676
1,877
4,147
7,104
6,341
4,988

Yamaguchi
Hiroshima
Okayama(B)/(C)1,342,059
2,799,702
1,888,432
15,985,430
12.7%
5,465,002
21,450,432
17.0%

6,113
8,479
7,115
51,84013.7%
8,401
60,241
15.9%

35,36652,973
212,649
61,385127,057
79,870715,23713.4%
214,169
929,406
17.4%

National Total (C)126,146,099

377,974

5,340,783

Total of the above nine prefectures (A)(A)/(C)
Hyogo
Total of the ten prefectures (B)Total of ten
prefectures
17.0%

Total population(Population
estimate)(October 2020)

63,31046,77435,853

Total of nine prefectures(excluding Hyogo)
12.7%

Total population(Population
estimate)(October 2020)

Prefecture total
production(Nominal)

Prefectural grossproduct growth rate
(Real)

Fiscal 2018

Fiscal 2018

Fiscal 2018

(Billions of yen)(％)(Thousands of yen)Prefectural income
per capita

566,761
429,167
301,688279,196483,206
2,236,269

4,988.3
3,956.3
3,173.3
2,472.9
4,614.3
20,057.8

(1.9)
0.0
1.3
(0.7)
2.8
0.4

2,658
2,966
3,092
2,647
2,714
2,867

577,791
1,302,074
820,656
6,996,808
12.3%
2,203,102
9,199,910
16.2%

6,482.1
11,713.7
7,805.7
65,264.4
11.7%
22,161.4
87,425.8
15.7%

0.6
(0.7)
0.4

3,289
3,109
2,769

0.3

3,042

56,872,826

556,303.7

0.6

3,182

Total of ten
prefectures
15.7%

Gross prefectural
product(Nominal)(Fiscal 2018)

Total of nine prefectures(excluding Hyogo)
11.7%

Gross prefectural
product(Nominal)(Fiscal 2018)

Source: Prepared based on the Statistics Bureau of Japan’s “2020 Population Census,” the Geospatial Information Authority of Japan’s “Statistical reports on the land area by prefectures and municipalities in Japan,”the Ministry of Internal Affairs and Communications’ and Ministry of Economy, Trade and Industry’s “Economic Census,” websites of each prefecture, and Cabinet Office’s “Annual Report on National Accounts”
Copyright © 2022 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(Millions of yen)

2016

2016

2020

2021

2021

2021

2015=100

Ehime

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

KagawaTokushima

2,711,583
1,908,126

2,619,010
904,487

1,169,352
757,121

92.5
95.1

5,718
3,044

1.36
1.19

2.4
2.5

Kochi
Oita
Fukuoka

585,527
4,298,945
9,912,191

874,256
1,344,689
16,970,699

753,371
1,235,257
5,864,032

93.0
UnpublishedUnpublished

2,790
6,260
40,298

1.08
1.16
1.06

2.2
2.2
3.0

Yamaguchi

6,553,479

1,641,957

1,488,895

Hiroshima
Okayama

9,741,531
7,704,136

9,166,762
3,543,971

3,309,726
2,093,111

92.2
88.2

7,832
17,809

1.33
1.32

1.9
2.4

92.8

39,577,095
9.1%
10,219,241
49,796,336
11.4%

18,199,419
12.5%
5,726,476
23,925,895
16.5%

2.4

94.0

0.93

2.8

(B)/(C)47,724,336
14.8%
16,263,313
63,987,649
19.8%

11,316103,136

1.39

Total of the above nine prefectures (A)National Total ©

322,533,418

436,522,525

145,103,822

90.6

1.13

2.8

(A)/(C)
Hyogo
Total of ten prefectures (B)Total of ten
prefectures
19.8%

Manufactured
product
shipments(2019)

Total of nine prefectures(excluding Hyogo)
14.8%

Manufactured
product
shipments(2019)

94.2(Homes)Total of ten
prefectures
15.6%

Number of new
housing starts(2021)

8,069

12.0%
30,284133,42015.6%
856,484(Times)

1.28

(%)

2.2

Total of nine prefectures(excluding Hyogo)
12.0%

Number of new
housing starts(2021)

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, theMinistry 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 © 2022 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 © 2022 THE IYO BANK,LTD. All Rights Reserved.

‐ 10 ‐

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

Future Market Outlook■ Unit transport volume and shipping tonnage■ Baltic Dry Index (BDI) trends
Maximum value
11,793（May 2008）

Growth rate of cargo movement
Growth rate of shipping tonnage

2,417(March 31, 2022)

Minimum value 290（February 2016）(Plan)
Source: ”Clarkson Research Shipping Review & Outlook” (Autumn 2021)”■ Dry bulk transport demand and supply●Shipping tonnage of dry bulk vessels for 2022 is expected to increase by 3.6% (up 328 thousand
DWT) from 2021. However, the unit transport volume* is expected to increase by only 1.9% dueto the prospect of a decrease in transport of grains resulting from the situation between Russia
and Ukraine, etc.
●Although unit transport volume growth is limited in comparison with 2021, because ofincreasing demand for dry bulk vessels due to tight space in container cargo and shipping
tonnage substantially suppressed due to port entry restrictions in China, concerns over asignificant decline in transport demand are considered low at present.
* Unit transport volume: Also called ton-mile. Indicates the tonnage and mileage of cargo transported and is anindicator to measure actual demand for ships.

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

■ Future market outlook●In 2021, the market conditions were supported by the increase in the cargo movement, theincrease in dry bulk transport of container cargo due to the recovery of economic activities fromthe impact of COVID-19, and shipping tonnage limited due to the replacement of crews, and themarket environment became favorable for the fist time in 12 years since the ocean transport
bubble economy period.
●Starting from the beginning of 2022, although the market declined due to seasonal factors suchas unfavorable weather in South America, the market has recovered to a rising trend due tolonger transport distances for grains and coal caused by the situation between Russia andUkraine (increase in unit transport volume). Indicators for chartering fees for the next fiscal year
are also at high levels and are not expected to weaken significantly.
‐ 11 ‐

Breakdown of Balance of Loans and Deposits at End of Period
1. Breakdown of balance of loans at end of period(Unites: Billions of yen)March 2018
Total Loans
General loans
Corporate loans (incl. overseas, etc.)
Corporate loans (domestic branches)
Individual financing
Housing loans
Apartment and building loans
Card Loans, etc.
Municipal loans, etc.

4,292.6
4,054.6
3,030.6
2,965.5
1,024.0
742.6
191.3
29.6
238.1

September 2018

March 2019

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

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

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

March 2022
5,068.8
4,870.3
3,696.2
3,479.8
1,174.0
885.5
208.8
21.9
198.5

(Note) The figures shown for apartment and building loans are the total of the "institutional finance" portion.

2. Breakdown of balance of assets in custody such as deposits, etc. at end of period
March 2018

September 2018

March 2019

Vs. March 2021
69.5
86.7
71.6
44.9
15.1
14.8
3.1
(1.7)
(17.1)(Unites: Billions of yen)

September 2019

March 2020

September 2020

March 2021

September 2021

March 2022

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)

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

7,015.2
6,654.1
6,041.8
3,850.8
1,915.1
141.7
45.2
88.8
612.2
445.0
167.0
2,360.2
308.8
133.1

Vs. March 2021
144.3
131.5
58.7
110.1
61.7
(21.1)
1.8(93.8)
72.8
17.6
55.0
79.4
33.9
34.1

Individual deposits + individual assets in custody
Individual deposits
Individual assets in custody

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
3,794.0343.4

4,201.03,850.8
350.1

122.7
110.1
12.5

Assets in custody at the Bank (excl. deposits, etc.) B
JGBs
Investment trusts
Single premium polocies
Financial product intermidiary
Shikoku Alliance Securities balance C
Balance of Group's assets in custody B+C=D

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

361.1
21.3
67.8
205.4
66.4
246.0
607.1

12.8
2.1
6.2
(3.3)
7.8
0.8
13.6

Assets in custody composition (D/A+C)

8.9%

9.2%

8.9%

8.9%

8.6%

8.5%

8.3%

8.3%

8.4%

<Assets in custody (Term-end basis)>(Note) The figures shown for foreign currency deposits (balance) are the total excluding overseas / offshore.

Copyright © 2022 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, %)March 2017

March 2018

Composition

March 2019

Composition

March 2020

Composition

March 2021

Composition

March 2022

Composition

Vs. March 2021

Composition

Balance

Rate of balance
increase/decre

Manufacturing

583.0

14.4

611.7

14.5

643.0

14.5

650.5

14.1

660.2

13.7

638.8

13.2

(21.4)(3.2%)

Agricultural

2.8

0.1

2.6

0.1

2.7

0.1

2.6

0.1

2.5

0.1

2.8

0.1

0.3

12.0%

Forestry

0.2

0.0

0.3

0.0

0.3

0.0

0.4

0.0

0.4

0.0

0.4

0.0

0.0

0.0%

Fishing

13.8

0.3

12.1

0.3

11.3

0.3

11.9

0.3

8.8

0.2

8.1

0.2

(0.7)

(8.0%)

Mining

8.8

0.2

8.7

0.2

8.6

0.2

7.1

0.2

6.7

0.1

6.4

0.1

(0.3)

(4.5%)

Construction

112.6

2.8

112.9

2.7

116.3

2.6

116.0

2.5

135.1

2.8

135.7

2.8

0.6

0.4%

Electricity, gas, heat provision, water

92.9

2.3

108.1

2.6

134.0

3.0

154.4

3.4

176.7

3.7

200.6

4.1

23.9

13.5%

Information communications

28.8

0.7

21.8

0.5

22.0

0.5

18.9

0.4

17.7

0.4

18.0

0.4

0.3

1.7%

Transportation

629.9

15.6

679.7

16.1

717.9

16.1

769.7

16.7

859.7

17.9

896.8

18.5

37.1

4.3%

510.3

12.6

542.1

12.8

580.3

13.0

639.3

13.9

724.6

15.1

765.7

15.8

41.1

5.7%

Wholesale and retail

471.2

11.7

469.4

11.1

511.6

11.5

504.3

10.9

518.1

10.8

516.5

10.6

(1.6)

(0.3%)

Finance and insurance

192.7

4.8

205.7

4.9

200.2

4.5

185.3

4.0

180.9

3.8

205.8

4.2

24.9

13.8%

Real estate

221.4

5.5

255.6

6.0

270.5

6.1

299.8

6.5

315.8

6.6

311.7

6.4

(4.1)

(1.3%)

Various services

412.7

10.2

435.1

10.3

438.5

9.9

467.6

10.1

496.7

10.3

483.3

10.0

(13.4)(2.7%)

181.3

4.5

193.7

4.6

192.2

4.3

197.2

4.3

209.7

4.4

207.0

4.3

(2.7)

(1.3%)

240.2

5.9

232.7

5.5

234.8

5.3

230.0

5.0

212.0

4.4

197.7

4.1

(14.3)(6.7%)

1,030.8

25.5

1,071.2

25.3

1,136.1

25.5

1,188.525.8

1,217.3

25.3

1,229.0

25.3

11.7

1.0%

4,041.8

100.0

4,227.5

100.0

4,448.4

100.0

4,607.5

100.0

4,809.5

100.0

4,852.4

100.0

42.9

0.9%

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 year ended March 31, 2022, excluding “goods rental,” was ¥294.0 billion, which is an increase of ¥0.1 billion (+0.0%) compared with the year ended March 31, 2021. In addition, “other” includes“home renting by individuals” (¥217.7 billion for the year ended March 31, 2022).
* 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 24of the Earnings Briefing.
Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

‐ 13 ‐

Table of Changes in Borrower Classification
 Activities for supporting enhancement of corporate value are conducted through business feasibility assessments of customers
 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)

Upper row: Number of borrowers

March 31, 2022

Lower row: Credit amount(Hundreds of millions of yen)Normal borrowers
Borrowers requiring closemonitoring

March 31, 2021

Borrowers understrict observation
Borrowers
at risk of bankruptcy
Substantiallybankrupt borrowers
Bankrupt borrowers
Total

Borrowers
requiringclose monitoring

Normalborrowers

Total

Borrowers under
Borrowers atstrict observation risk of bankruptcy

Substantiallybankrupt
borrowers

Rate ofdegradation to atrisk of bankruptcy
or below

Bankrupt
borrowers

Improvement

Degradation

18,923

17,335

16,712

569

26

18

7

3

0.15%

623

36,62835,49434,424

968

92

8

1

0

0.03%

1,070

2,377

2,259

516

1,602

19

122

0

0

5.13%

516

141

4,179

4,010

884

2,950

34

142

0

0

3.40%

884

176

114

109

12

9

73

14

1

0

13.16%

21

15

242

225

20

7

170

27

0

0

11.39%

27

28

339

311

14

23

3

261

3

7

40

10

513

474

4

29

7

431

1

2

40

3

87

54

0

0

0

0

51

3

0

3

27

10

0

0

0

0

9

0

0

0

21

7

0

0

0

0

0

7

0

6

1

0

0

0

0

0

1

0

21,861

20,075

17,254

2,203

121

415

62

20

577

792

41,59540,21235,332

3,955

302

608

11

4

951

1,277

(Note 1) The chart displays the changes in the borrower classification from March 31, 2021 to March 31, 2022.
(Note 2) The balances after changes are the balances after write-offs as of March 31, 2022.
Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

‐ 14 ‐

Management by Risk Category: Securities Investment(Units: Billions of Yen)
Year ended March 31, 2022

Risk Category(*1)

Interest and dividend income

Profit / loss from
Increase/decrease onpurchase, sale,gain/loss onandamortization
evaluation (vs.
March 2021)(*4)

Source of main revenue and profit

Evaluation
gain / loss

512.9

+7.2

520.1

30.8%

(2.0%)

2.5

3.4

3.4

0.0

(0.0)

(0.9) Difference in long and short term interest on yen interest

95.6

+4.4

100.0

5.9%

(4.0%)

3.2

1.0

1.0

0.0

0.0

+2.1

79.8

+2.1

81.8

4.8%

+0.7%

3.3

0.5

0.5

0.0

0.0

+2.8 Rise in expected inflation rate

Foreign currency bonds (with hedges)

354.6

(5.7)

348.9

20.6%

(1.9%)

(9.5)

4.5

4.9

0.5

(5.0)

(8.9) Difference in long and short term interest on overseas interest

Yen-denominated bonds
Of which, JGBs
Of which, inflation-indexed JGBs

Marketbalance Composition

Total
profit /loss (*2)

BookbalanceVs. March
2021

Interest
Procurement
received (*3)
cost

Foreign currency bonds (without hedges)

285.8

+14.4

300.2

17.8%

+2.2%

11.7

3.6

3.6

0.0

3.2

+5.0 Gain on foreign exchange /interest revenue

Domestic and overseas stocks (incl. stock trusts)

141.1+233.1

374.2

22.1%

+0.6%

(21.8)

8.1

8.1

0.0

3.5

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

Alternatives

124.2

+22.5

146.7

8.7%

+1.1%

7.3

4.2

4.2

0.0

1.3

+1.8

Hedge funds

30.3

(0.8)

29.5

1.7%

(0.3%)

(0.7)

1.1

1.1

0.0

0.0

(1.8) Strategic diversification by external consigned management

Real estate-related

81.1

+22.6

103.7

6.1%

+1.2%

6.9

3.1

3.1

0.0

1.3

+2.6 Revenue from real estate rentals and profit from price increase

Private equity

7.9

+0.1

8.0

0.5%

+0.1%

0.1

0.0

0.0

0.0

0.0

+0.1 Rise in enterprise value due to management improvement of unlisted stocks, etc.

Emerging stocks

4.9

+0.6

5.5

0.3%

+0.1%

1.0

0.0

0.0

0.0

0.0

+1.0 Growth and foreign exchange gains in emerging markets

1,418.5+271.5

1,690.1

100.0%

-

(9.7)

23.8

24.3

0.5

2.9

(36.4)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+187.3

(2.8)

+2.2

(0.0)

+189.6(2.8)

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

+184.5

(5.2)

0.0

0.1

0.1

0.0

(5.2) Business continuity of domestic and foreign companies, etc.

(0.0%)

0.0

0.0

0.0

0.0

0.0

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

(0.2%)

(5.2)

0.0

0.1

0.1

0.0

(5.2)

10.9%

(0.2%)+2.2

0.1%+186.8

11.1%‐ 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)

March 2022

March 2022

Loan balanceCommitment
balance

Japan

64.5

14.6

79.2

58.3%

North America

18.1

1.7

19.8

14.6%

(16.3)(1.7)(18.0)(13.3%)

Europe

15.2

0.0

15.2

11.2%

Asia and Oceania

13.9

0.0

13.9

10.2%

Middle East

3.9

0.0

3.9

Latin America

2.5

0.0

Other
(international organization)

1.0

Total

119.3

(Of which, the U.S.)

Loan balanceCommitment
balanceElectricity and gas

60.7

14.6

75.4

55.6%

(Of which, solar power generation)(34.3)(4.6)(38.9)(28.7%)

Transportation

14.7

0.0

14.7

10.9%

(10.0)(0.0)(10.0)(7.4%)

Manufacturing

14.5

0.0

14.5

10.7%

2.9%

Various services

14.4

0.0

14.4

10.7%

2.5

1.9%

Financial

9.2

1.7

10.9

8.1%

0.0

1.0

0.7%

Construction

1.2

0.0

1.2

0.9%

16.3

135.7

100.0%

Wholesale and retail

1.0

0.0

1.0

0.7%

Other

3.3

0.0

3.3

2.5%

119.3

16.3

135.7

100.0%* Excluding Singapore Branch

Total

Composition(Of which, aircraft finance)

Total

Total

Composition* Excluding Singapore Branch
Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

‐ 16 ‐

Status of Integrated Risk Management[Status of Integrated Risk Management (March 31, 2022)](Units: Hundreds of millions of yen)

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

Buffer2,798

Common stock, etc.
Tier 1(Nonconsolidated)
6,438

・Take into account correlation between different risks
・Core deposits: Use an internal model

Operationalrisk

・Stock VaR: Includes strategic equity holdings
Notutilized
1,510

Marketrisk
2,830○Credit risk (holding period of one year, 99.9%)
・Business loans, etc.: Monte Carlo method
・Loans for individuals: Analysis method

Credit risk
680
Risk capital(¥643.8 billion)

Risk limit
First half of fiscal
2022(¥364.0 billion)

Copyright © 2022 THE IYO BANK,LTD. All Rights Reserved.

Risk limit
Second half of fiscal
2021(¥370.0 billion)

Risk amountMarch 2022 results(¥218.9 billion)‐ 17 ‐