Fiscal 2020 Earnings Briefing Materials(April 1, 2020 – March 31, 2021)
Inv estor Rela tions 2021

June 4, 2021

IndexI. Summary of Earnings for Fiscal 2020
II. Overview of Fiscal 2021 Medium-Term Management Plan
II-1. Summary of Fiscal 2018 Medium-Term Management Plan
II-2. Fiscal 2021 Medium-Term Management Plan

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐1‐Profit and Loss Overview in Fiscal 2020
 Although net income decreased due to an increase in credit costs, a high level of core business gross profit was secured
No nconsolidated results(Un its: Millions of yen)Core business gross profit
Interest and dividend income
Fees and commissions
Of which, revenue on assets incustody
Other operating income(Excluding profit/loss related tobonds including JGBs, etc.)
Expenses (-)
Personnel expenses
Nonpersonnel expenses
Taxes
Core business net income
Core business net income (excluding
gain (loss) on cancellation of
investment trusts)
Credit costs (-) ①+②-③
Provision of reserve for general loan
losses ①
Amortization of non-performing loans②
Recoveries of written off claims ③

Fiscal 2020

Yo Y

I n crease/
De crease+4.99%

Fiscal 2019Up ¥3,827 million YoY+3,827+5,154
(913)

1,449

(248)

1,697

3,038

(415)

3,453

Expenses (-)

49,66025,70021,0732,886
30,934

(273)
(133)
(152)
+13
+4,099+15.27%49,93325,833
21,225
2,873
26,835

Although strategic investment has continued, personnel expenses andnonpersonnel expenses decreased through efforts for improvement ofoperational efficiency and reductions in expenses

29,396+2,501+9.30%

26,895

12,504+5,594

6,910

9,174

+8,710464

3,940(3,252)

7,192

610
3,737

(135)
+221

745
3,516

Gain (loss) related to securities

Gain (loss) related to bonds including JGBs, etc. increased due toflexible rebalancing of portfolios according to market trends(0.55%)

76,76866,2007,114Core business gross profit

80,59571,354
6,201

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

2,515

+494

2,021

1,222
1,609
23,776(372)
23,404
16,679(272)(1,532)(2,805)+583(2,222)(1,823)(9.85%)

1,494
3,141
26,581(955)
25,626
18,502

Ordinary revenue
Business net income

104,428
24,276(1,970)(4,116)(1.85%)(14.50%)106,398
28,392C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

(10.55%)

While fees and commissions decreased due to restricted face-to-facesales, interest and dividend income increased due to increased gain on
securities management from stronger foreign-denominated securities

Credit costs (-)

Down ¥273 million YoY

Up ¥5,594 million YoY

Amid the COVID-19 pandemic, a preventive provision of ¥8,700 million
was recorded in consideration of future increases in credit costs

Net income

Up ¥221 million YoY

Down ¥1,823 million YoY‐2‐

Factors in Increase / Decrease in Core Business Gross Profit in Fiscal 2020
 A high level of core business gross profit was secured due mainly to an increase in gain on securities management
Year-on-year (Fiscal 2020 - Fiscal 2019)(Units: Billions of yen)
(Note) Differences in yield utilize yield
differences with deposits, etc.
Interest anddividend income(¥71.3 billion)

Gain on loan
management(¥47.4 billion)+0.45

Gain on securities
management(¥24.1 billion)

+3.83

+0.27
Of which, foreign currency(¥6.1 billion)

+0.18

+5.15
Core businessgross profit(¥80.5 billion)

Of which, domestic currency(¥41.2 billion)

Of which, domestic currency(¥15.9 billion)

+0.81

+4.69

Of which, foreign currency(¥8.2 billion)

Other (-¥0.3 billion)+3.88

Volume factors +1.86 (Average loan balance up ¥190.2 billion)
Yield difference factors (1.59) (Yield difference down 0.04%)
Volume factors +1.11 (Average loan balance up ¥82.4 billion)
Yield difference factors (0.93) (Yield difference down 0.18%)
Volume factors (0.84) (Average securities balance down ¥61.8
billion)Yield difference factors +0.05
Gain on fund cancellation factors +1.60 (Increase in gain on
cancellation of investment trusts, etc.)
Volume factors +2.26 (Average securities balance up ¥150.9
billion)Yield difference factors +1.62 (Yield difference up 0.71%)+0.01
Revenue on assets incustody(¥1.4 billion)
Fees and commissions(¥6.2 billion)(0.25)(0.91)

Other(¥4.7 billion)

Other(¥3.0 billion)(0.66)(0.41)
C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

… Insurance agency commissions (0.21), investment trust related commissions (0.06), etc.

… Solutions-related revenue (0.46), commission received on domestic exchange (0.12), etc.

… (0.32) from gain (loss) on foreign exchange transactions, (0.10) from gain (loss) on derivatives‐3‐

Loans, Deposits, and Assets in Custody in Fiscal 2020
“Deposits, etc.”“Loans”

Up 13.4% year-on-year
Up 5.1% year-on-year

Balance of deposits, etc. by region
R egionBoth increased for 24 consecutive years(Units: Billions of yen)F i scal2019

F i scal
2020
4,938.1+401.8

Shikoku (excluding Ehime)

234.4

265.4

+31.0

Kyushu

163.1

181.0

Chugoku

242.1

Kinki

F i scal2019

F i scal
2020

Within Ehime Prefecture

2,409.2

2,543.9+134.7

Increase/
D ecrease+5.6%+13.2%

Shikoku (excluding Ehime)

315.6

331.7

+16.1

+5.1%

+17.9

+11.0%

Kyushu

306.9

317.7

+10.8

+3.5%

300.5

+58.4

+24.1%

Chugoku

447.0

467.8

+20.8

+4.7%

152.0

192.4

+40.4

+26.6%

Kinki

371.6

381.1

+9.5

+2.6%

Tokyo and Nagoya

398.1

462.3

+64.2

+16.1%

Tokyo and Nagoya

639.4

649.1

+9.7

+1.5%

Overseas, etc.

28.0

182.6

+154.6+552.1%

Financial Market Business Office

117.6

118.0

+0.4

+0.3%

5,754.3

6,522.6+768.3+13.4%

Total (domestic branches)

4,607.5

4,809.5+202.0+4.4%

Overseas, etc.

149.0

189.7

+40.7

+27.3%

Total

4,756.6

4,999.3+242.7

+5.1%

Total

YoY

Balance of assets in custody(Units: Billions of yen)F i scal2019

F i scal
2020

Group assets in custody

542.2

593.5

+51.3

Increase/
D ecrease+9.5%

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

339.7

348.3

+8.6

+2.5%

202.4

245.2

+42.8

+21.1%

122.3

131.9

+9.6

+7.8%

54.4

49.4

(5.0)

(9.2)%

67.9

82.4

+14.5

+21.4%

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

YoY

YoY

Share within Ehime Prefecture as of March 31, 2021 (excluding Japan Post, agricultural
cooperatives, etc.)
Deposits

4,536.3

R egion(Units: Billions of yen)

Loans

Within Ehime Prefecture

Increase/
D ecrease+8.9%

Balance of loans by region

The
Bank

Regional banksother than the BankCity banks /Trust banks

Secondregional banks

Creditunions‐4‐Credit Costs and Disclosed Non-performing Loans in Fiscal 2020
Credit costs by factor(Units: Billions of yen)

Credit costs

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

3.5

5.8

6.9

12.5

+5.6

(0.6)

0.2

0.4

9.1

+8.7

4.7

6.1

7.1

3.9

(3.2)

0.8

1.0

1.3

0.5

(0.8)

Downgrades, etc.

6.3

6.9

8.1

6.2

(1.9)

Upgrades and collections
Recoveries of written off claims(-)
Credit management expense ratio
(*)

(2.3)

(1.8)

(2.2)

(2.8)

(0.6)

0.5

0.5

0.7

0.6

(0.1)

0.09%

0.13%

0.15%

0.26%

+0.11P

Credit costs total
Provision of reserve for generalloan losses
Amortization of non-performing
loans
Bankruptcies

YoY

Up ¥5.6 billion YoY(An increase factor due to provision for COVID-19
measures +¥8.7 billion)
Provision of reserve for general loan losses was up¥8.7 billion as a preventive provision (provision for
COVID-19 measures) was recorded in consideration of
future increases in credit costs
Amortization of non-performing loans was down ¥3.2
billion as the occurrence of bankruptcies anddowngrades, etc. remained low(*) Credit management expense ratio = Credit costs / Average loan balance

Amounts and ratios of disclosed non-performing loans under the Financial Reconstruction Act

Loans to bankrupt or effectively
bankrupt borrowers
Doubtful assets
Credit subject to specific risk
management
Total disclosed non-performing loans
Ratio of disclosed non-performing
loans(Units: Billions of yen)

Ratio of disclosed non-performing loans1.39%

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

3.0

6.0

6.5

3.6

(2.9)

44.1

46.6

53.2

52.8

(0.4)

18.0

18.6

18.0

16.8

(1.2)

65.2

71.3

77.7

73.3

(4.4)

1.44%

1.48%

1.55%

1.39%

(0.16)P

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

YoYContinued at a low level owing to limited occurrence ofbankruptcies and downgrades, etc.

‐5‐

Evaluation Gain (Loss) on Securities and Equity Ratio in Fiscal 2020
¥307.8 billion

Evaluation Gain on Securities

Consolidated Gross Equity Ratio

14.65%

Maintained a top level among regional banks

Secured high soundness, sufficiently exceeding required equity ratio

Evaluation gain on securities (nonconsolidated)

Consolidated gross equity ratio(Hundreds ofMillions of Yen)

Nikkei Average (Yen)

3,078

2,349
2,177

2,184

March
2016

March
2017

Gain / loss on securities(left axis)

March
2018

2,276

March
2019

Nikkei average(right axis)

2,344

March
2020

March
2021

March
2016

March
2017

Tier 1 ratio for common stock,
etc.

March
2018

March
2019

March
2020

March
2021

Gross equity ratio(Note) Excludes evaluation gains / losses on money held in trust

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐6‐

Response to COVID-19<Continuation of Fund Management Support for Customers>
COVID-19 loans

Changes in condition

Approx. ¥200.0 billion

Approx. 300 borrowers

COVID-19-related loans made(cumulative)(Hundreds ofMillions of Yen)

Number of objects for condition changes(cumulative)(Number)<Impact on Business>
Re cording provision for COVID-19 measures

Preventive provision was recorded in preparation for future increases in defaults
amid the COVID-19 pandemic[Objectives and chart of preventive provision](Number)With Credit Guarantee
Association
ProperBusinesses
Individuals

Number<Time axis><Measures><Impact on profit/loss>

Present

Preventive provision
recorded in preparation
for future economic
deterioration

Credit costs
at normal times+ preventive provision

Pre ventive provision
u tilized to mitigate
financial losses

Credit costs
during economic
downturn- re versal of
pre ventive provision(The number of defaults
remained low due toactive support)

Future(Severe economic
downturn, increasing
defaults)
September 2020

¥8.7 billion

March 2021

September 2020

Support by the support team for
COVID-19 measures

March 2021

M ain support methods● Consisting of ten employees in the headquarters withexpertise and know-how in business support● Providing wide support for business issues as well as
consulting on fund management［Support results (as of March 31, 2021) ］

In progress

Done

Total

32

127

159

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

●Business matching●ICT consulting●Business succession, M&A●Financing●Primary industry support●Staffing●Manufacturer support●Overseas business support●Local product support
websiteProvision that is preventively recorded is utilized during an economic
downturn, which contributes to securing stable profits less sensitive toeconomic changes, trends of COVID-19, etc. in the future

Actively supporting fund management of customer companies
and local economies while securing financial soundness and risktaking capacity‐7‐IndexI. Summary of Earnings for Fiscal 2020
II. Overview of Fiscal 2021 Medium-Term Management Plan
II-1. Summary of Fiscal 2018 Medium-Term Management Plan
II-2. Fiscal 2021 Medium-Term Management Plan

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐8‐Efforts in the Past
 The Fiscal 2018 Medium-Term Management Plan further advanced reform of existing mechanisms which had been worked on from the Fiscal 2015 Medium-Term
Management Plan and took measures such as establishing new mechanisms for increasing productivity while strengthening foundations with customers and improving the
top line.
10 years ahead

Sustainable Growth of the Bank and Revitalization of Regions
Fiscal 2021 Medium-Term
Man agement Plan

G oals forthe future

Third
Stage

Leading financial services
group in the Setouchi
region in terms ofcustomer satisfaction

Fiscal 2018 Medium-Term
Management Plan
Fiscal 2015 Medium-Term
Management Plan

“ Three years to
ac hieve dramatic
gr owth”

Second
Stage

First
Stage

“ Three years tot r ansition to a new
gr owth trend”“ Three years tot ake on new growth
st rategies”

Digital-Human-Digital Bank
─ W henever, wherever, closer to you ─

O pt imize managementr e sourcesI

S t rengthen ability t o offer value t ailored to each customer

II

En h ance productivity and reduce cost through optimumr e source allocation

I I I Co mmit t o regional revitalization actively
En sure stable, long-term earnings power through overseas andI V mar ket investment
De velop organizational culture that diversity of every person
V is le veraged and proactively and mutually enhanced

C ore Strategy

II

Take on new growth
st r ategies
Co r e Policy

Co r e PolicyI

Co n sulting strategy
O n line business strategy
I CT st rategy, Branch
st r ategy, BPR strategy
R e gional revitalization
st r ategy

Enhancing consultation capabilities
Creating new mechanisms(increasing productivity)

Mar ket strategy
P e r sonnel strategy

Reforming existing mechanisms

Fo ur underlying basic c oncepts
Sh ift t o customer-oriented sales
Shift from "proposals by product“ to"proposals by customer" tailored to eachcustomerC o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

Bu siness m odel transformation

En h ance the Group’s collective strengths

Further strengthen individual retaildepartments and fee business

Strengthen cooperation across the Group andaddress new sectors responding to changes inthe environment

St rengthen m anagement structure
an d r aise awareness
Reform business and cost management
Actively try something new‐9‐

Major Outcomes I
Up t o t he Fiscal 2015 Medium-Term
M an agement Plan

Fiscal 2017

Fiscal 2018

C onsulting menus

Top line

Reforming
existingmechanisms

Fiscal 2019

Fiscal 2020

St arted ICT consulting businessSt arted staffing business*

In troduction of new “HOME” digital home loan service
Disruptive service
In troduction of new “SAFETY” digital card loan service

API collaboration

Base

Creating new mechanisms (increasing productivity)

Enhancingconsultation
capabilities

Fiscal 2018 Medium-Term Management Plan

Vision Roadmap
DesignC ollaboration with 4 companies

Expanded collaboration to 10
c ompanies

Expanding the scope of inquiries in
M ONEY MANAGER

Launching transfer function in
M ONEY MANAGER

In troduced in 65 branches

In creased to 90 branches

C ollaboration with 2 companies

Sm artphone apps
Br anch Network review

Visualizing
cost
structure

Ne xt-generation
br anches

In troduced in 43 branches

AGENT

C ounter reception tablet

RPA

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

Function enhancement: “for Biz,” “attentive listening function,” and “sales liaison by tablets”

RPA in-house development (digital human resources
de velopment)

C onsider AI + OCR + RPA* ”Fee-charging employment placement business” based on the “Employment Security Act”

‐ 10 ‐

Major Outcomes II◆ Despite continuation of a severe business environment, core business gross profit was secured at a high level with various measurestaken, exceeding the targets◆ The results were generally in line with the targets, although net income and ROE in Fiscal 2020 were below the targets due to anincrease in credit costs caused by recording preventive provision
Numerical targets of Fiscal 2018 Medium-Term Management Plan
and actual results

Comparison of core business gross profit (with Fiscal 2017)¥80.5 billion

Fiscal 2020

Fiscal2017
Results

Targets

Results

Core businessgross profit¥77.5
billion¥76.5
billion¥80.5
billionFees andcommissions¥6.6 billion¥77.5 billion◎Increase in domestic loans based on business feasibility assessment(u p ¥4.5 billion)◎Increase in consulting revenue and other non-interest revenue(u p ¥1.0 billion)◎Increase in individual loans utilizing digital technologies(u p ¥2.0 billion)◎Expansion of business at the Singapore Branch(u p ¥1.5 billion)◎Increase in foreign-deminated securities seizing market trends(u p ¥5.0 billion)¥8.5 billion ¥6.2 billion

Net income¥22.6
billion¥20.5
billion¥16.6
billion

ROE

3.83%

3.0%
or more2.50%

Core OHR

63.31%

65.0%
or less

61.61%

Equity ratio(BIS standard)

14.31%

15.0%
or more14.65%

Ratio of nonperforming loans

1.44%

2.0%
or less

1.39%

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

Effects of measures under the Fiscal 2018 Medium-Term
Management Plan (major positive factors)

Severe business environment (major negative factors)◎Decrease in gain on yen-denominated securities
management(do wn ¥5.5 billion)◎Decrease in yen-denominated loan yields(do wn ¥4.5 billion)◎Decrease in service income due toimpact of COVID-19(do wn ¥1.0 billion)
M ar ketFiscal 2017

C o nsulting

Dir ect

Fiscal 2020‐ 11 ‐

ESG through Business Activities/Efforts for SDGs I: E nvironment<Environmental Protection>
Expressed support for the TCFD Recommendations

Efforts with Project Finance for Renewable Energy

Improving information disclosure to contribute to achieving a decarbonized society,assuming risks of climate change to customers and the Bank

[Renewable energy]

Solar power generation

14

Biomass generation

4[Number of other environmental loans executed]

Loans relating to the interest subsidy business
implemented by the Ministry of the Environment
Arrangement of syndicated loans for investment
funds for green bonds

Iyogin CSR

En vironmental policy

Iyogin Declaration on
SDGs

9
1

Promoting paperless●Utilized an electronic approval system (April 2017)[C o rporate C redo/Significance of Existence]“ C reating a bright and prosperous future
fo r t he r egion”●Promoted development of web databases (April 2019)⇒ Digitalized application flows (123 cases)●Introduced “CUBE“ management system for properties in custody (April 2020)⇒ Reduced collection slips and reception slips (11,000 books/year)

GovernanceSupervision structure of the Board of Directors concerning
climate-related risks and opportunities

Strategies

Scenario analysis concerning climate-related migration risks
and ph ysical risks to loans and financial intermediation
operations

Risk
management

Disclosure of policies on investment and loans to sectors thathave an impact on climate change

Benchmarkand targets

Targets and results of su stainable financeTargets and results of reductions in green house gas (GHG)e missions of the Bank

[Reduction of paper use]

Approx. 7 million sheets during the year
≒ approx. 600 forest planted trees
C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 12 ‐

ESG through Business Activities/Efforts for SDGs II: S ocial<Financial and Information Services><Local Economy and Community>
Business Foundation Support
Nu mber o f business foundation support

Iyogin SDGs Advisory Service
M arch 2019 M arch 2020 M arch 2021

Business foundation planning support
Of which, start-up loans (with/without Credit Guarantee
Association)
Of which, referrals to government-affiliated financial
institutions and start-up support organizations
Of which, venture companies registered for grants orinvestments

205

255

367

93

72

301

●Started operations of “Iyogin SDGs Advisory Service” in December 2020
●Number of support services provided for preparing ”SDGs Declaration”⇒1 8 cases (As of March 31, 2021)

43

50

17

ESG/SDGs Related Private Placement Bonds

26

25

24

(Millions of Yen)

Crowdfunding
Number by category

Number (Cumulative)

Businessfoundation
13
Regional
T ot alrevitalization
5 0 c ases
22

“Kaisha-no-Mirai”
SDGs“Chiiki no Mirai”“Manabiya”
Environment

New products andnew services
15
March 2019

September 2019 March 2020 September 2020 March 2021

March 2019

March 2020

March 2021

<Diversity and Work Style Reforms>
Change in Overtime Work under Labor Standards Act

Change in paid leave utilization rate

6.6
hours

3.2
hours

4.2
hours

65.2%

January to
December 2018

January to
December 2019

January to
December 2020

January to
December 2018

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

67.1%

69.6%

January to
January to
December 2019 December 2020

Enhancement of Employee Engagementwith “wevox” Introduced●Tool for visualizing and analyzing engagement at each office●Improving organizational capacity and business results byimplementing the PDCA cycle speedily through meetings,
etc. at each office based on the results‐ 13 ‐

ESG through Business Activities/Efforts for SDGs III: Governance<Governance>
Governance System

Countermeasures against Money Laundering and Terrorism Funding

Management Deliberation Committee

Ad v isory Board<Strict customer management> <Thorough examination and verification>
ReportConsult

Deliberation on thenomination of andcompensation for
Directors, etc., andimportant mattersregardingmanagement

Evaluation andadvice on the
Bank’smanagement
strategy andgovernance

Bo ard of
Directors

Internal Directors

Independent
Outside Directors

Audit and Supervisory Committee

・Improving the counterreception structure・Introducing “customer risk
rating”
・Conducting “continuous
customer management”

・Investigating “suspicious transactions”
・Conducting “track monitoring” for ship finance・Monitoring overseas remittance by utilizing AI・Investigating foreign companies based on
external databases

Building Structures for AML Enhancement●The AML Center was established at TSUBASA Alliance Co.,
Ltd. in October 2020. Discussions toward joint operations
are promoted for more advanced, efficient, and stable AML
operations.

Strengthening Group GovernanceIntroduced the “Group Chief Officer System” from this MediumTerm Management Plan for the purpose of further strengthening
the Group's management control structure
C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

Head Offices
本店所在地
Branches
店舗所在地‐ 14 ‐

Participation in Society (ESG through Non-Business Activities/Efforts for SDGs)
Environmental
Protection

Iyo Bank Evergreen Forest
Established in 2008 (13th year)

Under the "Agreement on Forest Creation
Activities" which was entered into with Ehime
Prefecture, Ozu City and Forest Fund of Ehime,
we are making efforts to foster forests in four
locations in Ehime Prefecture.

Diversity

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

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

Iyo Bank Evergreen Forest (Toon City)

We introduced a side business system for
employees to support their growth so that they will
gain a wide range of knowledge, skills, and human
networks through various experiences, which areuseful for their future life and work in the Bank.
About 30 employees carry out various sidebusinesses including creation of paintings and fabricaccessories as well as website development.

Iyogin Financial
Education Class

Iyo Bank Regional Cultural
Activity Assistance Program

Iyo Bank Social Welfare Fund
(Public Interest Incorporated
Foundation)

Established in 1992 (29th year)

Established in 1976 (45th year)

We grant part of funds
for activities of parties
which carry out“grassroots” culturalactivities in Ehime andgranted a total of ¥238
million to 1,227
organizations. In addition,"special applications"targeting organizations
damaged by the heavy
rain in July 2018 are also
invited.

IyoginChallenge&Smile

Started in April 2020

Established in 2018 (3rd year)

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

Fiscal 2020 ”Tada Eco-group Tanpopo”

Contribution to local
c ommunities

Applications are invited twice a year from June toJuly and from December to January

Side business system

We support improvement in social welfare and humanresource development for the next generation in Ehime
Granting scholarships to highschool students in single or noparent families

Employment subsidies forchildren living in child welfare
institutions, etc.

Started in 2007 (14th year)

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

Workplace experience
Programs for work experiencein a bank and a study tour in abranchIyogin Junior
Mirai Juku
Lesson program in line withschool curriculum guidelines
and financial literacy map

Iy o Bank Social Welfare Fund
(Public Interest Incorporated Foundation)

58th recipient “Oshibune
Conservation Society”

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

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

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

‐ 15 ‐

IndexI. Summary of Earnings for Fiscal 2020
II. Overview of Fiscal 2021 Medium-Term Management Plan
II-1. Summary of Fiscal 2018 Medium-Term Management Plan
II-2. Fiscal 2021 Medium-Term Management Plan

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 16 ‐

Positioning and New Long-Term Vision The new "Long-Term Vision" looking 10 years ahead was established to promptly solve issues in society andcustomers and address industry deregulation by further deepening and evolving the DHD model
New Long-Term Vision (Goals for the long-term future)

Corporate group continuing to create and provide new value
COVID-19, deregulation, etc.
ESG/SDGs

Fiscal 2021
Medium-Term
Management Plan

Previous 10-year vision“Leading financial services group in the Setouchi region in terms ofcustomer satisfaction”
Basis of the DHD model Utilization of Digital technologies and warm response by Humans * To be continued
Fiscal 2015 Medium-Term
Management Plan

Fiscal 2018 Medium-Term
Management Plan

Fiscal 2021 Medium-Term
Management Plan

(1) Continuing to create and provide newvalue

・Strengthening consultation capabilities by theentire Group・Improving cooperation with other industries toexpand the business fields(2) Corporate group

・Aggressively try business fields having highaffinity with the core business and leading tosolutions for issues in society and customers

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”
C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 17 ‐

Future Vision Following the Long-Term Vision●Improvement in

Cu rrent to New MediumTe rm Management Plan

●Bank employees serving as thebank at a customer site●Counters where no pens
are usedcooperation with otherindustries with high affinity
with core business●A bank on your palm
Connecting with bank employees via
video chat

Future Vision

For bringing “better choice” to each and every customer●House purchasing plan with asmartphone●New card loan service thatissues notifications on
insufficient amounts

AT M

Creation of new services
and new businesses

Deepening and evolving the DHD model = ”DX”
Change in company culture (fixed thinking)Review of existing business and●Recombination of businesses
reduction in technical debt
based on customer needs●Review and abolition of legacy
systems●More efficient administration
through introduction of RPA●Reorganization of branches throughreview of operation structure

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

Aiming to become a leading
corporate group based on the
Chugoku and Shikoku regions

I m provementi n c ustomere x periencev a lue( CX)￥

Bank Group

br anchBu sinessof otherindustries

T rust信頼

OfficesIyo
客 Cu行
stomerIndividuals
Bank
App

Reduction of administrative work to one-third* Compared to March 2018

Consulting staff 1,500 persons/Tech staff 150 persons
Location free operations(Omnichannel/integration of online and offline channels)‐ 18 ‐

Business Strategies and Cross-Sectional Efforts Supporting Business Strategies◆Business strategies: to be worked on under this Medium-Term Management Plan and developed
according to future changes in environments◆Plan: to address issues from a long term view, watching adaptation to changes in environments

To be worked on by the Group
as a whole toward achieving theLong-Term Vision

Toward achieving a “corporate group continuing to create and provide new value”

Plan

Businessstrategies

Medium-term view (3 years)

Corporate related

Personal relatedMarket investment

Ship related
Originating fromc u stomers
Responding to futurec h anges in environments

BPR

IT

Branches

HR development

Human resources

Re sponding to long-term
issuesLong-term view (7 to 10 years)
Iyo Bank Group Iyo Bank
Iyogin Leasing/Iyogin Computer Service/The Iyogin Credit Guaranty/The Iyogin Business Service/Iyogin Capital/Iyogin Regional Economy Research Center/
Iyogin DC C ard/Shikoku Alliance Securities/Iyogin Challenge & Smile
C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 19 ‐

Fiscal 2021 Medium-Term Management Plan _ Major Numerical Targets I Aiming at profit attributable to owners of parent of ¥23.0 billion and consolidated ROE of 4.0% or more,
maintaining and improving profitability by strengthening consulting sales originating from customer needs,
though changes in the business environment are expected Keeping consolidated core OHR and consolidated common stock Tier 1 ratio at current levels in considerationof profitability, efficiency and soundness while making efforts to improve revenue
Fiscal 2018 MediumTerm Management Plan

Fiscal 2021 MediumTerm Management Plan

(Actual results for Fiscal 2020)(Targets for Fiscal 2023)

Consolidated core business gross profit¥86.6 billion¥86.0 billion

Profit attributable to owners of parent¥18.0 billion¥23.0 billion

Consolidated ROE (shareholders’ equity
basis)

3.82%

4.0% or more

Consolidated core OHR

60.19%

Approx. 60.0%

Consolidated common stock Tier 1 ratio

14.58%

Approx. 15.0%

Items

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 20 ‐

Fiscal 2021 Medium-Term Management Plan _ Major Numerical Targets II Deposits, etc. → Average balance for Fiscal 2023: ¥6,685.0 billion (an increase by ¥500.0 billion for three years of Medium-Term Management Plan) Loans→ Average balance for Fiscal 2023: ¥5,290.0 billion (an increase by ¥395.0 billion for three years of the Medium-Term Management Plan)
Plans for average deposits, etc., balance and assets in custody balance
Fiscal 2020
Re sults(Units: Billions of yen)

Fiscal 2021
Plan

Fiscal 2022
Y oY

Plan

Fiscal 2023
Y oY

Plan

I n crease/de c rease duringt h e P lan

Y oY

Average deposits, etc., balance

6,184.6

6,470.0+285.46,580.0+110.06,685.0+105.0+500.4

Of which, individual deposits

3,658.3

3,779.0+120.7

3,827.0+48.0

3,876.0+49.0+217.7

Group assets in custody balance

593.5

602.0

+8.5

626.0

+24.0

657.0

+31.0

+63.5

348.3

352.0

+3.7

359.0

+7.0

372.0

+13.0

+23.7

245.2

250.0

+4.8

267.0

+17.0

285.0

+18.0

+39.8

Of which, balance of assets in custodyat the Bank
Of which, balance at Shikoku Alliance
Securities(Units: Billions of yen)Plans for average loan balance (including Singapore Branch)Fiscal 2020
Re sults

Fiscal 2021
Plan

Fiscal 2022
Y oY

Plan

Fiscal 2023
Y oY

Plan

I n crease/de c rease duringt h e P lan

Y oY

Average loan balance

4,894.4

5,040.0+145.6

5,155.0+115.05,290.0+135.0+395.6

Corporate loans

3,246.8

3,312.0+65.2

3,365.0+53.0

3,433.0+68.0+186.2

Of which, within Ehime

1,438.6

1,509.0+70.4

1,528.0+19.0

1,538.0

+10.0

+99.4

Individual loans

1,130.7

1,171.0+40.3

1,224.0+53.0

1,281.0+57.0+150.3

Municipal loans

232.2

217.0

(15.2)

214.0

(3.0)

211.0

(3.0)

(21.2)

Financial Market Business Office

116.3

117.0

+0.7

117.0

+0.0

117.0

+0.0

+0.7

Singapore Branch

168.1

223.0

+54.9

235.0

+12.0

248.0

+13.0

+79.9

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 21 ‐

Relationship between Fiscal 2021 Medium-Term Management Plan and ESG and SDGs

Achievement of SDGs
Corporate Credo

ESG

Fiscal 2021 Medium-Term Management Plan
Businessstrategies

Plan

Developing various measures originating from issues andneeds of customers and local communities, towardachievement of the Long-Term Vision (goals for the
future)Th rough business activities
Accelerating measures for environmental and social issues⇒ Realize a community with warmth and vitality

Matters to Be Prioritized as Basis of Business Activities

OthersStandpoints from
ESG and SDGs

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

Post COVID-19
Deregulation
Utilization of digitaltechnologies‐ 22 ‐

Business Strategies _ Corporate Related I<Basic policies> Providing integrated solutions through cooperation between the Group, partner companies, etc. toimprove customer experience value

Major plans(Total for Fiscal 2021-2023)

Customer issues and needs
Businessfoundation
Purchase
Logistics

Production

GrowthShipment
Distribution

Sales
MarketingServices

Reform/DeclineMaturedPurchase
Logistics

Production

Solution revenue

Shipment
Distribution

Sales
MarketingServices

Smooth and diverse financing
Business matching, overseas businessdevelopment, manufacturing, efficient use ofre al estate, asset management, risk
management, etc.

(Various issues and needs in business stages and value chains)
Businessfoundation

M&A andbusiness
succession

Management
improvement
andturnaround

ESG/SDGs as business
opportunities

Local and social issues

Strengthening consultationc apabilities at the entire GroupLe aseSystemde velopment

T hink tank

C redit cards

Venture capital

Securities

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

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

Shortage in labor andorganizational restructuring

In crease in productivity byu tilizing ICT¥11.0 billion
Number of customers forwhich business feasibility
assessment is conducted

2,400
Number of new customers

3,900
Support for M&A andbusiness succession

435 cases

Business as the core of
local communities

58 cases to be
cultivatedNumber of staffing contracts
concluded

320 cases
Creation of businesses suitable
for local communities

Branding in the primary andtourism industries

Digitalization of utilities
payment operations

Payment at counters
to be halved‐ 23 ‐

Business Strategies _ Corporate Related IIBusiness Feasibility Assessment

M&As and Business Succession (Total for the Medium-Term Management Plan)

To be conducted for 2,400 customers

435 contracts to be concluded“Mirai Support Sheet” × ”business feasibility assessment investigation committee”⇒ Correct understanding of customers’ management issues

Responding to more diversifying succession and inheritance needs by understanding
changes in industry trends(Number)Business succession(Number)(Number)Number of Mirai Support Sheet prepared (left axis)
Number of business feasibility assessment
investigation committee held (right axis)

March 2021

March 2023 (Plan)

March 2022 (Plan)

March 2024 (Plan)

Staffing Business (Total for the Medium-Term Management Plan)

320 contracts to be concluded
378 inquiries and 69 contracts concluded as of March 31, 2021
(Number)Number ofcontracts

March
2017

March
2018

March
2019

March
2020

March
2021

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

March
2022
(Plan)March
2023(Plan)March
2024(Plan)March 2021

March 2022 (Plan)

March 2023 (Plan)

March 2024 (Plan)‐ 24 ‐

Business Strategies _ Corporate Related III
Solution Revenue (Total for the Medium-Term Management Plan)¥11.0 billion

Aiming at an increase in revenue by taking various measures, focusing on stable provision of funds and business andmanagement support with business feasibility assessment as a focus(Millions of Yen)

Improvement of business feasibility
assessment

OthersOverseas, derivatives
Corporate solutions

M&A and business succession

Staffing business
Diversification and improvement offinance schemes
Bu siness matching and support ofoverseas development
ICT, digitalization, manufacturer support,
etc.

Expanding the support menu and strengthening thestructure to solve customers’ issues throughconsulting services from multiple aspects provided
by the entire Group
March 2021

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

March 2022 (Plan)

March 2023 (Plan)

March 2024 (Plan)‐ 25 ‐

Business Strategies _ Personal Related I<Basic policies> Realizing enhancement in customer experience value by providing integrated solutions for each customer in all channels
From birthtouniversity

Fromgraduation
to startinga job

Buy carGet
marriedHave ababy

Buy
insurance

Buy house

Funds foreducation

AssetmanagementApp

br anchSuccessionof assets

Inheritance
Donation

AT M￥

Customers’ issues and needs
Easy and convenientLoans

Nu mber o f
n ew contracts
7 ,200Percentage of
HOME
8 0%*

Retail cashless settlement
Transaction volume of¥40.0 billion*As of the end of Fiscal 2023

* Percentage of HOME to the total application
number as of the end of Fiscal 2023

Saving and increasing

PreparingGroup assets in custodybalance¥677.0 billion*

Number of customers oflevel premium insurance
contracts
39,500* Balance as of the end of Fiscal 2023
including foreign currency time deposits

Bequeathing

Number of customers of
testamentary trust
contracts
730

Major plans (total for Fiscal 2021 to Fiscal 2023)
C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 26 ‐

Business Strategies _ Personal Related II
New Digital Home Loan Service

New Digital Card Loan Service

Aiming to increase the housing loan balance by further improving
convenience for customers and housing companies

Aiming to increase the number of customers with contracts bystrengthening promotion and continuously improving UI/UX

Percentage of HOME
Housing loan balance(Hundreds ofMillions of Yen)

80%
¥1,030.0 billion(Number)

Balance of housing loans
Percentage of HOME

March 2021

March 2022 (Plan)

Number of contracts

March 2023 (Plan)

March 2024 (Plan)

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

7,900 customers[Number of customers of SAFETY contracts (cumulative) ］

March 2021

March 2022 (Plan)

March 2023 (Plan)

March 2024 (Plan)‐ 27 ‐

Business Strategies _ Personal Related III
39,500

Number of Customers of Level Premium Insurance

Online insurance consultation provides sophisticated consulting on level premium
insurance at home
(Number ofcontracts )“Level premium
insurance” contracts concluded「平準払保険」成約実績
Number ofcontracts
concluded¥677.0 billion

Responding to various customers’ thoughts such as “saving and increasing,”“bequeathing” and “preparing”(Number ofcustomers)

Number ofcustomers

Group Assets in Custody Balance(Hundreds ofMillions of Yen)

Group Assets in Custody Balance*Including foreign currency time deposits for individuals

Shikoku Alliance Securities
The Bank

In s urance plaza

At homeMarch 2019

March 2020

March 2021

March 2024 (Plan)

730

Number of Customers of “Trust-Related” Contracts

April 2021 ⇒ Introduced “Magokoro (Heartfelt) Letter,” a living trust by which withdrawal
is possible before death“Trust related” contracts concluded (cumulative)(Number)Number ofcustomers with
contracts concluded

Succession

Will

Dementia

Tax

March 2019

March 2020

March 2021

March 2024 (Plan)

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

CareMarch 2019

March 2020

March 2021

March 2024 (Plan)‐ 28 ‐

Business Strategies _ Ship Related<Basic policies> Supporting optimum business investment for customers by appropriately understanding changes in the business environment
in the maritime industry
Improvement in Risk Consulting Capabilities
Concerning the Shipbuilding and Ocean
Provision of Diverse Funding Sources
Transport Industries●Improvement in risk analysis and assessment ●Utilization of syndicated loans and credit
concerning the ocean transport industry
guarantees●Collection and analysis of macroeconomic●Improvement in ship evaluation methods
information and future projections●Consideration of asset finance and project●Appropriate proposals for risk hedge methods
finance
Improvement in Research and Analysis
Enrichment in Activities Connecting
Capabilities Concerning the Maritime Industry
Domestic and Overseas Maritime Industries
in General●Strengthening a wide range of cooperation●Enrichment in collection of information
with companies and organizations relating torelated to the overseas maritime industry
the maritime industry●Provision of information concerning overseas●Collection and provision of cross-sectional
companies related to the domestic industry
information in the maritime industry●Collection of information related to reduction ●Support of overseas development forin environmental loads and digitalization anddomestic companies
provision of support to related companies

Balance of domestic ship loans as of March 2021 (actual results)¥730.3 billion
Recorded ¥730.3 billion, up ¥85.2 billion year on year, due tofactors such as an increase in new transactions, a decrease in
ship sales and weaker yen in the fiscal year-end period
Balance of domestic ship loans as of March 2024 (plan)¥750.0 billion(Hundreds ofMillions of Yen)

Change in Balance of domestic ship loans

March 2018

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

March 2019

March 2020

March 2021 March 2024 (Plan)‐ 29 ‐

Business Strategies _ Market Investment I<Basic policies> Making diversified investments emphasizing liquidity, considering total profit and loss leading to stable revenue and future revenue

Investment Policy by Risk Category(Risk category)Yen-denominatedbonds
Foreign bonds (withforex hedges)

Securities Performance(Hundreds ofMillions of Yen)

(New investment policy)

Not change

Foreign bonds (without
Not change
forex hedges)
Domestic andoverseas stocks(including investment
trust)

Decrease

Alternatives, etc.

Not change◎Keep a certain amount as assets inversely correlated with stocks, while in viewof interest trends.
◎In a continuing low interest environment in Japan, keep the balance as a bondincluding foreign bonds with hedges.
◎Adjust the balance and implement strategic re-balancing according to thesituation while keeping a certain amount to secure stable profit from carrytrading.
◎Sell off stocks held for strategic purposes if the necessity of holding is notrecognized.
◎Purchase stocks held solely for investment purposes of which growth isexpected in the medium- to long-term view.
◎Consider investment to secure stable carrying and portfolio diversification.

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

Alternatives, etc.

Domestic and overseas stocks(including investment trust)

Foreign bonds(without forex hedges)

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

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

March 2019

March 2020

March 2021

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

Total for last 10 years(right axis)

Portfolio Risk Sensitivity and Duration
Yen-denominated bonds●Portfolio risk sensitivity (As of March 31, 2021)◎Yen-denominated bond portfolio
10BPV ¥3.0 billion◎Foreign bond portfolio (with hedges)
10BPV ¥3.6 billion◎Foreign bond portfolio (without hedges) 10BPV ¥3.0 billion / Exchange ¥10V ¥26.7 billion◎Stock portfolio Nikkei Stock Average ¥1,000V ¥10.1 billion
10 years(Of which,JGBs)

8 years
6 years
4 years
2 years
0 years

March 2019

March 2020

March 2021

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

March 2024
(Plan)

Yendenominatedbonds

March 2018

Foreign bonds(with forex hedges)

March 2019

March 2020

March 2021

March 2024
(Plan)‐ 30 ‐

Business Strategies _ Market Investment II Build up quality assets mainly in the Singapore Branch and Financial Market Business Office and maintain profitability by stableforeign currency procurement and reduction of procurement cost
Loan balance plan [Singapore Branch]

Status of Foreign Currency Investment and Procurement [March 31, 2021](Hundreds ofMillions of Yen)

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

Mainly assets with high liquidity
Securities, etc.

Loans

Investment

Mainly assets with low liquidity

Procurement

March 2019

March 2020

March 2021

Long-term
procurement

Deposits, etc.

Repo
procurement

Short-term
procurement

Flexibly utilize foreign currency procurement methods responding tomarket conditions

March 2024 (Plan)

Loan balance plan [Financial Market Business Office](Hundreds ofMillions of Yen)

<Only Loans>
Year-end balance

Investment

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

Loans

Deposits, etc.
Procurement

Loans withmulti-currency terms

Long-term
procurement

Commitment line

Cash flow risk is guaranteed with commitment lines
March 2019

March 2020

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

March 2021

March 2024 (Plan)‐ 31 ‐

Cross-Sectional Efforts Supporting Business Strategies _ BPR Strategy<Basic policies> Aiming to increase productivity of the entire Group by minimizing administrative and routine work and strengthening workforce
available for responding to customers and planning operations
Bank Branch Administrative Staff(in Charge of Operations)Bank Branch Administrative Staff (in Charge of L oans)

Effect of Headquarters Workload Reduction⇒ Downsizing to 800 staff members⇒ Downsizing to 350 staff members⇒ 200 thousand hours/year

Simpler administration flow
● Introduction of “AGENT“ to all branches●“CUBE” management system of property
in custody● Electronic contracting service forbusiness loans

Improvement ofMarch 2020

March 2021

Cashless processing● Satto Madoguchi (Quick Counter) (nextgeneration branches)* Minimization of cash handling operations
through connection between Satto(Quick) ATM and terminals at Bank Branches●Introduction of AGENT tablets

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

March 2024
(Plan)

200 thousand
hours/year

110 thousand
hours/year

March 2018

March 2019

March 2020

March 2021

March 2024
(Plan)He adquarters-centralized operations

Improvement of Operational Efficiency
at Headquarters● Operation Support Center● Centralized call reception, centralized
document storage● Loan Operation Support Center● Introduction of RPA● Digitalization of various application flows
through introduction of groupware(paperless)●AGENT for Business●Attentive listening function

Amount of administrative work (thousand seconds)

Amount ofadministrative work
Number ofadministrative staff

Number of administrative staff

Number of administrative staff

March 2018 March 2019 March 2020 March 2021 March 2024
(Plan)

Amount of administrative work (thousand seconds)(Pe rsonnel conversion: Approx. 100 people)
Amount ofadministrative work
Number ofadministrative staff●Transfer request form with QR●Tablets with sales liaison function●NEXT STAGE⇒ Bank on your palm
‐ 32 ‐

Cross-Sectional Efforts Supporting Business Strategies _ Branch Plan
<Basic policies> Aiming to diversify touch points connecting to customers by restructuring channels including branches
Review of Branches and ATM Locations

Optimum Locations of Branches and ATMs

Number of
branches

Restructuring of the branch channel toward
deepening and evolving the DHD model◎Sorting out excessive branches in addition to
improving efficiency with centralized branch functions
Past
Number of branches(excl. branches within branches)

March
2019

March
2020

September
2020

March
2021

September
2021(plan)◎Continual consideration of optimum locations ofbranches and ATMs, utilizing new channels (ex.
various apps and Iyogin SMART)
FutureI mprovement andadvancement

Ch allenge

De velopment of Non-Face-to-Face Channels◎Developing an app that can provide the same
customer experience as at a counter: Personsserving as abank

No nface-tofacec hannelNumber of ATMs
◎Reducing the number of installed ATMs by utilizing common use
and no charge alliance against a background of increases incashless settlements and ATMs in convenience stores⇒Th e number of installed ATMs decreased by approx. 19%

Re view of Branch Functions◎ Daily transactions with a smartphone app◎ Value added operations that only humans canprovide are mainly implemented at branches◎In troduction of the Group Head system (as of May 31, 2021)

Establishment of Iyogin SMART(actual results under the previous Medium-Term Management Plan)

Core branches: 28

Linked branches: 57◎Review of business hours (as of May 31, 2021)
Extension of business hours: 3 branches
Adoption of lunch break: 8 branches* Excluding account transactions◎Shift to labor-saving branches (as of May 31, 2021)
Branches located in government offices: 5 branches

In troduction of Next-generation Branches◎Shift of 9 1 branches to Ne xt-generation br anches(as of May 31, 2021)

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

: Co r e branches/Linked branches: Br anches for specific purposes(flagship branches, e tc.)
: Ult racompact branches* The figure shows examples of branch locations, etc. andnot actual locations.

◎ Newly establishing micro branches for the
purpose of maintaining contact points withlocal customers<To be opened>・Iyogin SMART Nakayama
August 2, 2021
・Iyogin SMART Kaminada
August 3, 2021
* This new form of branches where business days,
business hours, and operations handled are limited
aims to keep contact points with local communities‐ 33 ‐

Cross-Sectional Efforts Supporting Business Strategies _ IT Plan

Supporting business strategies from a digital view to contribute to improving CX<Basic policies> Establishing IT governance that ensures both speedy and flexible digital responses to external environments and customer needs
and a safe, stable and secure banking system

Speedy and Flexible Digital Responses to External Environments and Customer Needs
Development and improvement of data utilization system L ink to omnichannel and improvement in channels

Continuation of expansion of digital touch points〈Number of users by channel〉(Thousand)Fac e-to-face channels (counter and visit)●Par ticipation in C ollective MCIF Center and improvement
in data utilization
Sharing know-how on data utilization, developing personnel,
and establishing a sophisticated analysis system, which isdifficult for the Bank alone●Jo int development of data personnel
Started joint development of data analysis and businessplanning personnel with INTEC Inc. to improve data analysis
skills and planning●M ONEY M ANAGER function added
Installation of coupon distributionfunction in April 2021 following
improvement including installation of atransfer function

Maintaining a Safe, Stable and Secure Banking System

Digital channels (apps, HP, IB and S NS)

March 2018

March 2019

March 2020

March 2021

*The number of people who used the channel more than once a year, or the number of service※1年以内に該当のチャネルを1回以上利用した人数、または年度末時点のサービ
ス登録者数
registrant at fiscal year-end

Establishing IT GovernancePr omotion of improvement in core systems

Improvement in system infrastructure in the Bank

Optimization of IT investment●Study and research of application
technologies●Decision on improvement policies●Priority consideration of cloud utilization●Location-free and device-free responses●Improvement in long-term investment forecasts●Establishment and review of IT investment rules

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 34 ‐

Cross-Sectional Efforts Supporting Business Strategies _ Personnel Development Plan

Improving base skills<Basic policies> 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"
Consulting GroupAll employees are consultants
Shift development policies< Ge neralist→Personnel with an area of expertise>●Shifting focus to improving expertise in eachfield by classifying managerial workers
according to their career fields●Development through cooperation withspecialized departments●Improvement of short-term trainees, etc.

<Establishment of an environment whichfacilitates autonomous learning><Responses to diversifying careers>●Developing career paths for each career field●Developing skill maps (starting fromoperations for corporations and individuals)●Improving online training, etc.

●Revising uniform operations by introducing
training programs open to all employees●Introducing one-on-one meetings between
managers and employees to fill recognition
gaps between them

Corporation/Individual/Ship/Planning Personnel<Corporate Loan Academy><Short-term trainees in Corporate Loan Academy>

Improving special skills

Developing core bank employees by reviewing training programs foryoung managerial workers started in August 2013 as needed<Dispatching employees for training outside the Group><Continuation of short-term trainee system in Ship Finance Division>

Technology Personnel<System Division>Developing personnel trained
The System Division began to accept
in the division
short-term trainees(Acquisition of cloud-related skills, etc.)<Iyogin Computer Service>
Development of agile development
related engineers

Market Personnel

Encouragement of acquisition ofqualification for advanced specialist
engineers

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

<Target>Creating strong areas todevelop areas of specialty○ Developing personnel in fields forwhich a focus is strategicallyplaced to secure employees having
expertise to be required in eachfield
○ Providing support for making
strong areas from multiple aspects
to gain more sophisticatedoperational expertise<Continuation of the trainee system in theFunds Operation & Securities Division>

Market related corepersonnel

Experts in global
operations

Planning Personnel (Digital Business)<Mainly for employees at bankbranches>
Finding and developing talentthrough the training and trainee
systemDigital business personnel<For employees at headquarters>
Developing operating employees
through OJT, training andsecondment<Target skills>

Service designers (*1)
Business planners (*2)
Experts in data utilization (*3)

Personnel Development × BPR strategy

Carrying out business strategies
steadily by developing personnel
having expertise and securing
e mployees who become available
through BPR strategies in aplanned way(*1) Planning of launch of new services by utilizing
knowledge about service design andimprovement in services(*2) Visualizing matters to be realized andcollecting requirements(*3) Provision of issues and suggestions based ondata analysis‐ 35 ‐

Profit / Loss Forecasts for Fiscal 2021
 Aiming net income of ¥18.5 billion assuming a decrease in credit costs, though core business gross profit is expected
to decrease due mainly to a decrease in gain on securities management[Nonconsolidated results(Un its: Billions of yen)]

Fiscal 2020 results
In term ediater esults

Core business gross profit
Of which, interest anddividend income
Of which, fees andcommissions

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

Fiscal 2021 forecast
In term ediate
fo recast(Units: Billions of yen)

Y oY

Y oY

39.8

80.5

40.2

+0.4

79.5

(1.0)

34.8

71.3

35.5

+0.7

70.5

(0.8)

Gain on loan
management(¥47.0 billion)

(0.4)

3.0

6.2

3.6

+0.6

7.0

+0.8

24.8

49.6

24.8

(0.0)

49.0

(0.6)

12.8

25.7

12.9

+0.1

25.5

(0.2)

Core businessgross profit(¥79.5 billion)

10.3

21.0

10.3

(0.0)

20.5

(0.5)

(1.0)

Core business net income

14.9

30.9

15.5

+0.6

30.5

(0.4)

Credit costs(-)

1.4

12.5

5.6

+4.2

9.0

(3.5)

Gain (loss) related tosecurities

4.9

3.7

3.0

(1.9)

1.5

(2.2)

Ordinary income

19.4

Expenses (-)
Of which, personnel
expenses
Of which, nonpersonnel
expenses

Net (intermediate)
income

13.6

23.7
16.6

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

14.5
10.0

(4.9)
(3.6)

(Note) Differences in yield utilize yield differences with deposits, etc.

26.5
18.5

+2.8
+1.9

Interest anddividend income(¥70.5 billion)

Gain onsecurities
management(¥21.5 billion)

(0.8)

(2.7)

Volume factors +1.4
(Average loan balance up ¥145.6 billion)
Yield difference factors (1.8)(Yield difference down 0.04%)
Volume factors +0.6
(Average securities balance up ¥40.0 billion)
Yield difference factors(2.6)

Gain on fund cancellation factors

(0.7)

Other
(¥2.0 billion)
Fees andcommissions(¥7.0 billion)

+0.8

+2.3

Increase in interest on deposits withbanks, decrease in foreign currency
procurement costs, etc.

Increase in revenue on assets in custody, solution-relatedfees, etc.

Other(¥2.0 billion)(1.0)

Decrease in gain (loss) on foreign exchange transactions, etc.

‐ 36 ‐

Dividend Trends and Policy and Shareholder Benefit Program
Dividend Trends and Policy

Shareholder Benefit Program● Planning to increase dividends by ¥2 for the fiscal year ending March2022 (119th term), while strengthening the financial position withinternal reserves(Yen)
Ordinary
dividend

Shareholders holding 100 or more but
less than 1,000 shares●Grant shareholder benefits (Imabari towel)

Commemorative
dividend* Image for illustrative purposes.

Shareholders holding 1,000 shares or more
Select one of the following three choices●Goods made in Ehime Prefecture and special goods jointly
designed by the TSUBASA Alliance●Preferential time deposit accounts for shareholders●Donation to the Japanese Red Cross Society

March
2011

March
2012

March
2013

March
2014

March
2015

March
2016

March
2017

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

March
2018

March
2019

March
2020

March
2021

March
2022
(Plan)‐ 37 ‐

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

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

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

Iyo Bank Fiscal 2020 Earnings Briefing(April 1, 2020 – March 31, 2021)

Reference Materials

June 4, 2021

Index of Reference Materials

Overview of the Iyo Bank

Pg

Conditions in Loans and Deposits

Pg◎Iyo Bank Profile

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

12◎Branch Network

3◎Balance and Composition of Loans by Industry

13◎Summary of the Iyo Bank Group

4◎Table of Changes in Borrower Classification

14

Environment Surrounding the Iyo Bank

Pg

Pg

◎Main Industries in Ehime Prefecture

5

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

6◎Management by Risk Category: Securities Investment

15◎Industrial Structure of the Setouchi Region

7◎Balance of Investments by Region and Sector: Financial Market Business16◎Economic Indicators of the Setouchi Region I

8◎Status of Integrated Risk Management

17◎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

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐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

12 Officers, 2,699 employees (excluding temporary staff)
149 domestic (including 17 branches within branches, 7 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)

14.65%

Consolidated subsidiaries

16 companies

Consolidated employees (excluding temporary staff)

3,071 persons(As of March 31, 2021)

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐2‐

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

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

Number of branches
149 domestic

Okayama（including 17 branches
within branches）

Hyogo

1 overseas

Hiroshima
Osaka

Yamaguchi
KagawaFukuoka

Within Ehime:
117 branches
Oita

Kyushu region:
8 branches

Tokushima
Kochi

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

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

Kinki region:
5 branches

Tokai region: 1 branchTokyo region: 2 branches
Overseas: 1 branch
Representative offices: 2
offices‐3‐

Summary of the Iyo Bank Group(Units: Millions of Yen)

Consolidated Earnings
Summary[Consolidated]

Fiscal 2020

Ordinary revenue
Ordinary income
Profit attributable to owners ofparent124,817
26,172(1,689)(3,241)

Increase/
Decrease(1.3)%(11.0)%

18,088(834)(4.4)%YoY

Fiscal 2019

Consolidatednonconsolidated
Difference (Note)

126,506
29,413

20,3892,396

18,922

1,409(Note) The difference between consolidated
and nonconsolidated. The Bank has
acquired additional shares of
consolidated subsidiaries during fiscal
2019 and fiscal 2020. By this additional
acquisition, the Group’s shareholding
ratio increased, and profit attributable toowners of parent increased by about¥790 million.

List of Iyo Bank Group Companies
Head office and 142
branches,
7 sub-branches, and13 consolidated
subsidiaries

Iyo Bank

Banking business

The Iyogin Credit Guaranty Company Limited

Iyogin Venture Fund Corporation Limited IV

Cash organization and inspection business, maintenance and managementbusiness of automated cash facilities, etc.
Investment business for stocks and corporate bonds, etc., management ofinvestment funds, etc.
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

The Iyogin Business Service Company Limited

Iyogin Capital Company Limited

Iyo Evergreen Sixtiary Industrialization Support Fund Investment Business Limited
Partnership

Investment business to sixtiary industrialization bodies

Iyo Evergreen Agriculture Support Fund Investment Business Limited Partnership

Investment business to agricultural companies

Iyo Evergreen Agriculture Support Fund Investment Business Limited Partnership II

Investment business to agricultural companies

Iyo Evergreen Business Succession Support Fund Investment Business Limited Partnership
Iyogin Regional Economy Research Center, Inc.

Leasing business

Other

1 consolidated
subsidiary
2 consolidated
subsidiaries

2 non-consolidated non-equity method
subsidiaries
4 non-equity method affiliates〈2021年3月31日現在〉(As
of March 31, 2021)

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

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

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.

Iyogin Leasing Company Limited

Lease business, etc.

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

Consigned information processing business, software development business, etc.
Securities businessIyogin-Ehime University Originated Venture Support Fund Investment Business Limited Partnership

Investment business in startup companies originating in Ehime University

Iyo Evergreen Business Succession Support Fund II Investment Business Limited Partnership II

Investment business to business succession targets (established June 1, 2020)

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 (established April
1, 2020)‐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 2018

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

Matsuyama Region

65.0%(¥34.8 billion)

No. 1 in Japan

No. 1 in Japan(Note 2)
Number of ocean-going vessels owned by domestic shipowners (as of September 2020) (Note 1)
3,663 total vessels in Japan (including operators)

The Matsuyama region has companies with large
shares in products such as “small once-throughsteam boilers,” “farm machinery,” and “driedbonito shavings.”(Note 2)

Towels (2018)¥53.6 billion shipped in Japan

Uwajima Region
13.8%（¥66.2billion）

Niihama Region

No. 1 in Japan

Manufactured product shipments(2018)

Sea culture industry (2019)¥480.2 billion total national
production

Approx. 41% of shipments ofmanufactured products in Ehime(Note 2)•(Note 1) Iyogin Regional Economy Research Center, Inc. (IRC) estimates; theranking in Japan excludes operators.
•(Note 2) Ranking of Ehime Prefecture
C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

Shikokuchuo Region
7.2%（¥570.2
billion）¥1,740.4 billion

As a corporate town under the Sumitomo
Group, nonferrous metal, chemicals, steel,machinery and equipment are concentrated
particularly in the Niihama region.

No. 2 in Japan(Note 2)

Pulp and paper industry (2019)¥7,679.3 billion shipped in Japan

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

‐5‐

Manufacturing Industry in Ehime Prefecture▼Ehime Prefecture has manufacturing industries distinctive to each region
OthersComposition of manufactured goods
shipment by city (top five cities)

Production
machineryTransportation
machinery

Coal and oil
Matsuyama¥421.3 billion

OthersGeneralpurpose
machinery

Imabari¥971.3 billion

Food
products
FibersChemicals

Food products
MetalsCeramics andquarrying

Electric
machinery
OthersOthersGeneralpurpose
machinery

Beverages andtobacco(Note) The shipment amount of“coal and oil” for Imabari City is aconcealed value for statistical
purposes, thus it is included in“others.”
Source: Prepared by Iyogin Regional
Economy Research Center, Inc. (IRC)
based on the Ministry of Economy,
Trade and Industry’s “Census of
Manufacture 2019” (2018 results).

Production
machinery

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

Foodproducts
Fibers
Production
machinery

Saijo¥845.0 billion

Plastics
Nonferrous
metal

Nonferrous
metal
Plastics

Niihama¥895.4 billion

Shikokuchuo¥644.7 billion
Pulp, paper, andpaper processing

SteelTransportation
machinery

OthersChemicals‐6‐

Industrial Structure of the Setouchi Region▼The Setonaikai coastal region has established various industrial structures

Automotive, oil refining,
steel

Automotive,
shipbuilding, electronics

Shipbuilding, oceantransport, oil, towels andgarments
Okayama

Shipbuilding, textiles

Hiroshima
KagawaElectronics, farm machinery,
chemicals, tourism

ImabariNiihamaMatsuyama Saijo

Citrus, food processing

Shikokuchuo
Paper manufacturing andprocessing

Ozu
Yawatahama
Oita
Steel, automotive,
electronics, tourism

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

Chemicals, electronics,
nonferrous metal, generalmachinery

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

Ehime
KagawaTokushima
Kochi
Oita

October 2019
(Persons)
1,339,215
956,347
727,977
698,029
1,135,434

Total area
(Geospatial
Information
Authority of Japan)
January 2021
（ｋ㎡）
5,676
1,877
4,147
7,104
6,341

Fukuoka
Yamaguchi

5,103,679
1,358,336

4,987
6,113

Hiroshima
Okayama(A)/(C)
Hyogo
Total of ten prefectures (B)(B)/(C)2,804,177
1,889,586
16,012,780
12.7%
5,466,190
21,478,970
17.0%

National total (C)126,166,948

Total population(Population
estimate)

Total of the above nine prefectures (A)Total of ten
prefectures

17.0%
Total population(Population
estimate)(October 2019)

Number of offices Number of employees(Private sector,(Private sector,
excluding public
excluding public
sector)sector)2016
2016(Offices)(Persons)
63,310566,761
429,167
46,774
301,688
35,853
279,196
35,366483,206
52,973Prefecture total
production(Nominal)
Fiscal 2018
(Billions of yen)
4,988.3
3,855.1
3,173.3
2,419.0
4,614.3

Prefectural grossproduct growth rate
(Real)

Prefectural income
per capita

Fiscal 2018
Fiscal 2018(%)
(Thousands of yen)
(1.9)
2,658
0.4
3,013
1.3
3,092
0
2,644
2.8
2,714

2,236,269
577,791

19,808.0
6,374.6

0.9
0.7

2,885
3,203

8,479
7,114
51,83813.7%
8,401
60,23915.9%

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

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

11,713.7
7,805.7
64,752.0
11.8%
21,177.8
85,929.8
15.7%

(0.7)
0.4

3,109
2,769

(0.4)

2,968

377,976

5,340,783

56,872,826

548,367.0

0.3

3,198

Total of nine
prefectures(excluding Hyogo)

12.7%
Total population(Population
estimate)(October 2019)

Total of ten
prefectures

15.7%

Gross prefectural
product(Nominal)(Fiscal 2018)

Total of nine
prefectures(excluding Hyogo)

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

Source: Prepared based on the Statistics Bureau of Japan’s “Population Estimates,” 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’ andMinistry of Economy, Trade and Industry’s “Economic Census” and each prefecture’s “Annual Report on Prefectural Accounts”

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐8‐Economic Indicators of the Setouchi Region II
Manufactured
product shipments

Annual wholesale
sales amount

Annual retail sales
amount2018(Millions of yen)

2016
(Millions of yen)

2016
(Millions of yen)

Ehime
KagawaIndustrial production
index(annual average)
2019
2015＝100

Number of new
housing starts
2020(Homes)Jobs-to-applicantsratio(annual average)
2020(Times)Overallunemployment rate(annual average)
2020
（％）

Tokushima

4,264,038
2,769,479
1,853,356

2,511,264
2,619,010
904,487

1,528,554
1,169,352
757,121

99.9
106.5
101.3

8,049
4,747
3,554

1.33
1.42
1.16

2.0
2.2
2.2

Kochi
Oita
Fukuoka

594,523
4,438,950
10,237,865

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

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

99.8
96.1
105.1

3,437
6,892
34,464

1.03
1.19
1.15

2.7
2.0
3.0

Yamaguchi

6,701,163
10,039,720
8,354,250

1,641,957
9,166,762
3,543,971

1,488,895
3,309,726
2,093,111

107.0
100.7
101.4

6,217
16,05012,103

1.27
1.42
1.59

1.9
2.4
2.3

(A)/(C)
Hyogo
Total of ten prefectures (B)(B)/(C)49,253,344
14.8%
16,506,736
65,760,080
19.8%

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%

104.1

95,51311.7%
30,884
126,397
15.5%

1.04

2.7

National total (C)331,809,377

436,522,525

145,103,822

101.1

815,340

1.18

2.8

Hiroshima
Okayama
Total of the above nine prefectures (A)Total of ten
prefectures
19.8%

Manufactured
product
shipments(2018)

Total of nine
prefectures(excluding Hyogo)
14.8%

Manufactured
product
shipments(2018)

Total of ten
prefectures
15.5%

Number of new
housing starts(2020)

Total of nine
prefectures(excluding Hyogo)
11.7%

Number of new
housing starts(2020)

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

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

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

Hakata Shipbuilding Co., Ltd.
Murakami Hide Shipbuilding Co., Ltd.
Shimanami Shipyard 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
C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 10 ‐

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

Future Market Outlook●Volume of cargo movement and shipping tonnage●Baltic Dry Index (BDI) trends
Maximum value
11,793 (May 2008)

Growth rate of cargo
movement
Growth rate of shipping
tonnage

Average from 2000
onward: 2,260

Minimum value 290(February 2016)(Plan)

2,046(March 31, 2021)(Plan)

Source: ”Clarkson Research Shipping Review & Outlook” (Spring 2021)”●Dr y bulk transport demand and supply●Future market outlook●Shipping tonnage of dry bulk vessels for 2020 increased by 3.7% (up 329 thousand
DWT) from 2019. Meanwhile, the volume of cargo movement significantly decreasedby 2.1% from 2019 due to the impact of COVID-19.
●The growth rate of shipping tonnage in 2021 is expected to be limited to 2.6% from2020 as growth of 18.9 million tons is expected. Meanwhile, cargo movement is
expected to grow at 3.7%, which indicates a V-shaped recovery.

●During 2020, although the market temporarily declined due to the impact of COVID19, the volume of transport recovered in line with China’s economic recovery.
Thereafter, the market environment became favorable, supported by shipping
tonnage limited due to replacement of crews and demand for transport of grains
and coals to China.
●Moving forward, the market is expected to remain solid for the time being as thevolume of new ship construction is limited in strong transport demand.
●Expected long-term factors in market changes include trends of China's economic
policies, demand for coals for fuel and retirement of aging ships due to stricter
environmental regulations.

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 11 ‐

Breakdown of Balance of Loans and Deposits at End of Period
1. Breakdown of balance of loans at end of period
March 2017

(Units: Billions of Yen)
September 2017

March 2018

Total loans
General loans

4,043.3
4,132.4
4,292.6
3,802.3
3,899.0
4,054.6
Corporate loans (incl. overseas, etc.)
2,807.4
2,891.8
3,030.6
Corporate loans (domestic branches)
2,806.0
2,864.4
2,965.5
Individual financing
994.9
1,007.1
1,024.0
Housing loans
723.8
731.2
742.6
184.0
186.3
191.3
Apartment and building loans
29.6
30.0
29.6
Card loans
241.0
233.4
238.1
Municipal loans, etc.
(Note) The figures shown for apartment and building loans are the total of the "institutional finance" portion.

September 2018
4,431.5
4,192.2
3,146.0
3,060.4
1,046.2
758.2
198.0
29.1
239.2

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

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

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

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

2. Breakdown of balance of assets in custody such as deposits, etc. at end of period
March 2017

September 2017

March 2018

March 2021

Vs. March 2020

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

242.7
261.4
226.7
186.1
34.6
38.9
0.5
(3.3)
(18.7)(Units: Billions of Yen)
September 2018

March 2019

September 2019

March 2020

September 2020

March 2021

Vs. March 2020

Total deposits, etc. + assets in custody A

5,789.1
5,457.0
5,006.8
3,354.6
1,434.4
146.6
36.0
35.2
450.2
354.7
95.5
1,789.1
242.1
97.1

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

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

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

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

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

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

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

6,870.9
6,522.6
5,983.1
3,740.7
1,853.4
162.8
43.4
182.6
539.4
427.4
112.0
2,280.8
274.9
99.0

776.8
768.3
717.5
228.2
289.0
43.0
2.6
154.6
50.7
60.4
(9.7)
349.4
33.4
9.7

Individual deposits+individual assets in custody

3,673.2
3,354.6
318.6

3,703.7
3,376.3
327.3

3,722.5
3,392.1
330.4

3,751.4
3,412.0
339.3

3,769.1
3,423.6
345.4

3,795.6
3,450.2
345.4

3,841.4
3,512.5
328.8

3,988.5
3,652.2
336.3

4,078.3
3,740.7
337.6

236.9
228.2
8.8

332.0
27.2
85.1
191.5
28.3
163.7
495.8

340.7
25.0
81.0
202.1
32.5
192.7
533.5

343.0
25.4
71.6
206.2
39.7
201.4
544.4

351.9
24.0
71.5
210.8
45.5
208.3
560.3

357.9
22.4
68.6
215.7
51.0
199.5
557.4

357.1
20.3
66.7
216.4
53.6
207.8
565.0

339.7
19.8
53.8
214.2
51.7
202.4
542.2

347.8
19.9
58.7
211.3
57.7
226.6
574.5

348.3
19.2
61.6
208.7
58.6
245.2
593.5

8.6
(0.6)
7.8
(5.5)
6.9
42.8
51.3

8.3%
9.0%
8.9%
Assets in custody composition (Ｄ/Ａ+Ｃ)(Note) The figures shown for foreign currency deposits (balance) are the total excluding overseas / offshore.

9.2%

8.9%

8.9%

8.6%

8.5%

8.3%

Total deposits, etc.
Total deposits
Individual
General companies
PublicFinancial
Overseas / offshore
NCD
General companies
PublicGeneral company funds (incl. NCD)
Public funds (incl. NCD)
Foreign currency deposits (balance)
Individual deposits
Individual assets in custody<Assets in custody (Term-end basis)>

Assets in custody at the Bank (excl. deposits, etc.) B

JGBs
Investment trusts
Single premium policies
Financial product intermediary

Shikoku Alliance Securities balance C
Balance of Group's assets in custody B+C=D

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

－‐ 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
Manufacturing

March 2019

Composition

March 2020

Composition

March 2021

Composition

Vs. March 2020

Composition

Balance

Rate of balance
increase/decrease

583.0

14.4

611.7

14.5

643.0

14.5

650.5

14.1

660.2

13.7

9.7

1.5%

Agricultural

2.8

0.1

2.6

0.1

2.7

0.1

2.6

0.1

2.5

0.1

(0.1)

(3.8%)

Forestry

0.2

0.0

0.3

0.0

0.3

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

(3.1)

(26.1%)

Mining

8.8

0.2

8.7

0.2

8.6

0.2

7.1

0.2

6.7

0.1

(0.4)

(5.6%)

Construction

112.6

2.8

112.9

2.7

116.3

2.6

116.0

2.5

135.1

2.8

19.1

16.5%

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

22.3

14.4%

Information communications

28.8

0.7

21.8

0.5

22.0

0.5

18.9

0.4

17.7

0.4

(1.2)

(6.3%)

629.9

15.6

679.7

16.1

717.9

16.1

769.7

16.7

859.7

17.9

90.0

11.7%

510.3

12.6

542.1

12.8

580.3

13.0

639.3

13.9

724.6

15.1

85.3

13.3%

Wholesale and retail

471.2

11.7

469.4

11.1

511.6

11.5

504.3

10.9

518.1

10.8

13.8

2.7%

Finance and insurance

192.7

4.8

205.7

4.9

200.2

4.5

185.3

4.0

180.9

3.8

(4.4)

(2.4%)

Real estate

221.4

5.5

255.6

6.0

270.5

6.1

299.8

6.5

315.8

6.6

16.0

5.3%

Various services

412.7

10.2

435.1

10.3

438.5

9.9

467.6

10.1

496.7

10.3

29.1

6.2%

181.3

4.5

193.7

4.6

192.2

4.3

197.2

4.3

209.7

4.4

12.5

6.3%

240.2

5.9

232.7

5.5

234.8

5.3

230.0

5.0

212.0

4.4

(18.0)(7.8%)

1,030.8

25.5

1,071.2

25.3

1,136.1

25.5

1,188.525.8

1,217.3

25.3

28.8

2.4%

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

202.0

4.4%

Transportation
Of which, ocean transport

Of which, medical-related

Regional public entities
Other
Total

(For domestic branches, excludes special international transactions account)“Goods rental” is included in “real estate” from the six months ended September 30, 2009.
“Real estate” for the year ended March 31, 2021, excluding “goods rental,” was ¥293.9 billion, which is an increa se of ¥16.1 billion (+5.8%) compared with the year ended March 31, 2020. In
addition, “other” includes “home renting by individuals” (¥214.4 billion for year ended March 31, 2021).
* As “ocean transport” displays balances applicable to the “ocean transport industry” according to Japan Standard Industrial Classification, this figure does not match “Balance of domestic shiploans” on page 29 of the Earnings Briefing.
C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 13 ‐

Table of Changes in Borrower Classification▼ Activities for supporting enhancement of corporate value are conducted through business feasibility assessments ofcustomers▼ Corporate revitalization support is provided mainly by the Corporate Consulting Division
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, 2021

Lower row: Credit amount(Hundreds of millions of yen)

Total

Normalborrowers

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

Improvement

Degradation

Borrowers requiring
close monitoring

Borrowers understrict observation

Borrowers at
risk of bankruptcy

16,501

754

6

28

13

1

0.22%

802
1,449

19,082

17,303

34,61635,26933,820

1,415

2

20

12

0

0.09%

Borrowers requiring
close monitoring

2,004

1,890

327

1,473

18

72

0

0

3.59%

327

90

3,830

3,635

913

2,609

35

78

0

0

2.03%

913

113

Borrowers understrict observation

140

130

20

6

87

15

1

1

12.14%

26

17

237

228

8

4

201

15

0

0

6.31%

12

15

Borrowers
at risk of bankruptcy

297

260

15

21

3

212

7

2

39

9

517

421

4

18

4

390

2

3

26

5

Substantiallybankrupt borrowers

88

67

0

0

0

0

65

2

0

2

18

12

0

0

0

0

12

0

0

0

37

17

1

0

0

1

0

15

2

42

8

0

0

0

5

0

3

5

21,64819,667

16,864

2,254

114

328

86

21

394

920

39,261

39,57334,745

4,045

242

508

27

6

957

1,582

Normal borrowers

March 31, 2020

Bankrupt borrowers
Total(Note 1) The chart displays the changes in the borrower classification from March 31, 2020 to March 31, 2021.
(Note 2) The balances after changes are the balances after write-offs as of March 31, 2021.

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 14 ‐

Management by Risk Category: Securities Investment(Units: Billions of Yen)
Year ended March 31, 2021
Risk Category(*1)
Yen-denominated bonds
Of which, JGBs
Of which, inflation-indexed JGBs
Foreign currency bonds (with hedges)

Book

Evaluation

Marketbalance gain / loss balance

Total
Composition

Vs. March
2020

profit /Interest and dividend income
Interestloss (*2)

received (*3)

Profit / loss frompurchase, sale,

Increase/decrease on

Source of main revenue and profit

gain/loss on
Procurement and amortization
evaluation (vs.
(*4)
cost
March 2020)

612.0

+8.0

620.0

32.7%

(11.4%)

2.1

5.0

5.0

0.0

0.0

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

186.3

+2.3

188.5

10.0%

(9.6%)

0.2

2.3

2.3

0.0

0.0

(2.2)

79.4

(0.8)

78.6

4.1%

(0.4%)

0.3

(0.2)

(0.2)

0.0

0.0

+0.5 Rise in expected inflation rate

424.2

+3.2

427.4

22.6%

+1.4%

(17.5)

6.7

7.3

0.6

1.7

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

Foreign currency bonds (without hedges)

286.2

+9.4

295.6

15.6%

+4.4%

2.3

3.4

3.4

0.0

0.4

(1.5) Gain on foreign exchange /interest revenue

Domestic and overseas stocks (incl. stock trusts)

142.3+266.5

408.8

21.6%

+4.2%

91.9

6.0

6.0

0.0

1.2

+84.7 Growth in domestic/foreign companies centered on transaction partners

Alternatives, etc.

122.1

+20.7

142.8

7.5%

+1.4%

22.7

3.4

3.4

0.0

0.3

+18.9

Hedge funds

37.3

+1.0

38.3

2.0%

+0.1%

2.6

0.7

0.7

0.0

0.0

+1.9 Strategic diversification by external consigned management

Real estate-related

72.7

+20.0

92.7

4.9%

+1.4%

19.0

2.9

2.9

0.0

0.4

+15.7 Revenue from real estate rentals and profit from price increase

Private equity

7.2

+0.0

7.2

0.4%

(0.1%)

(0.2)

(0.1)

(0.1)

0.0

(0.1)

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

Emerging stocks

5.0

(0.4)

4.6

0.2%

+0.1%

1.3

0.0

0.0

0.0

0.0

+1.3 Growth and foreign exchange gains in emerging markets

Other (corporate management, etc.)

0.0

+0.0

0.0

0.0%

(0.2%)

(0.0)

(0.0)

(0.0)

0.0

0.0

(0.0) Seeking short-term profits due to market views

1,586.7+307.81,894.7

100.0%

-

101.4

24.5

25.1

0.6

3.6

+73.4

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

208.0

+2.4

210.4

11.1%

(2.5%)

6.1

3.0

3.2

0.1

0.0

+3.1 Business continuity of domestic and foreign companies

3.1

+0.0

3.1

0.2%

(0.1%)

0.0

0.0

0.0

0.0

0.0

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

211.1

+2.4

213.5

11.3%

(2.5%)

6.1

3.0

3.2

0.1

0.0

+3.1

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 15 ‐

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

Balance by Industry(Units: Billions of Yen)

(Units: Billions of Yen)
March 2021

March 2021
Loan balanceCommitment
balanceTotalbalance

Total

Composition

15.0

71.0

52.7%

(31.2)(8.6)(39.8)(29.5%)

Manufacturing

14.7

0.0

14.7

10.9%

13.8%

Transportation

17.5

0.0

17.5

13.0%

15.4

11.4%

(Of which, aircraft finance)(12.6)(0.0)(12.6)(9.4%)

0.0

4.0

3.0%

Various services

14.8

0.0

14.8

11.0%

3.6

0.0

3.6

2.7%

Financial

6.6

1.7

8.3

6.2%

118.0

16.7

134.7

100.0%

Wholesale and retail

1.3

0.0

1.3

1.0%

Construction

2.0

0.0

2.0

1.5%

Other

4.8

0.0

4.8

3.6%

118.0

16.7

134.7

100.0%

57.6

15.0

72.6

53.9%

North America

18.5

1.7

20.2

15.0%

(15.8)(1.7)(17.5)(13.0%)

Asia and Oceania

18.6

0.0

18.6

Europe15.4

0.0

Middle East

4.0

Latin America
Total

Electricity and gas

Commitment

56.0

Japan

(Of which, the U.S.)

Loan balance

Composition* Excluding Singapore Branch(Of which, solar power generation)

Total* Excluding Singapore Branch

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

‐ 16 ‐

Status of Integrated Risk Management[Status of Integrated Risk Management (March 31, 2021)](Units:Hundreds ofmillions ofyen)○ Operational risk

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

BufferCommonstock, etc.
Tier 1(Nonconsolida
ted)Operationalrisk

Not utilized• Take into account correlation between different risks• Core deposits: Use an internal model• Stock VaR: Includes strategic equity holdings○ Credit risk (holding period of one year, 99.9%)• Business loans, etc.: Monte Carlo method• Loans for individuals: Analysis method

Market risk

Credit risk
Risk capital(¥658.3 billion)

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

C o py ri ght © 2021 THE IYO B A NK ,L TD. A l l R i ght s R e s erve d.

Risk limit
Second half of fiscal
2020(¥391.0 billion)

Risk amountMarch 2021
results(¥247.9 billion)‐ 17 ‐