Because it is a machine translation, it is not always an accurate translation.

Update on Medium-to Long-Term
Management Strategy
And an overview of the results for the
fiscal year ended March 31, 2022

April 28, 2022

Contents
1.Summary of Financial Results
・Outline of Financial Results for the Fiscal Year Ended March 2022

4

2.Medium-to Long-Term Management Strategy Update・Longer-Term Management Strategy 2022
・Conversion to domestic banks
・Establishment of ROE Targets
・Policy on Distributing Profits to Shareholders
・Policy for Reduction of Strategic Shareholdings
・Executive compensation plan, maximum term of office・Employee Stock Grant Plans
・Supporting Growth through Private Equity
・Medium-to Long-Term Targets
・Medium-to Long-Term Target Levels (Details and Consolidated)
・Point of update
・Medium-to Long-Term Management Strategy-Card Business・Medium-to Long-Term Management Strategy-Leasing Business・Medium-to Long-Term Management Strategy-Consulting & Advisory<Reference> Established a subsidiary in Singapore
・Medium-to Long-Term Management Strategy-System Investment・Medium-to Long-Term Management Strategy-Credit-Related Expenses・Changes in loan loss reserve methods (sharing of ratings and borrowerclassifications)・Forecasts for the fiscal year ended March 2022

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7
8
9
10
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15
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19
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21
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23
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3.Business Model・Hokkoku Financial Holdings' Value Creation Process・Group synergy of FHD in North Country
・Sustainability Policy and Materiality

26
27
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・FHD's business model①Consulting & Advisory②Platform & System for Regional Revitalization③Toward Integrated Management of Loans & Leases & Equity④Fund management to core business⑤Asset management for corporations and individuals
・3 Pillars for Realizing Business Models①-[Digital]②-[People]③-[Facility-1][Facility-2]

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37
38
39

Overview of the fiscal year ended March 31, 4.2022
・Loans Outstanding and Yields by Segment ~・Loans and bills discounted ~ Yield by segment ~・Operation of negotiable securities
・Portfolio of market divisions
・Key Initiatives: Operating Revenues: Card, Leasing, and Consulting
・Card Business

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42
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46

5.Reference Materials
・Efforts to Reform Operations and Improve Productivity
・Sustainability Initiatives ①
・Sustainability Initiatives ②
・Sustainability Initiatives ③・Major Figures ①
・Major Figures ②

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HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

1. Summary of Financial Results

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Outline of Financial Results for the Fiscal Year Ended March 2022
and gains/losses on securities transactions increased year on year at the Hokkoku Bank.
Despite booking losses on the disposal of some software and expenses for the disposal of non-performing loans, both sales and profits increased YoY.
[Consolidated Profile of Hokkoku Financial Holdings]<Ordinary income JPY19.167 billion YOY +JPY6.277 billion><Net income JPY9.387 billion YOY +JPY2.635 billion>
Interest and dividends on securities(1) SUMMARY（Millions of yen)
【CONSOLIDATED】
Rate of increase or
FY2021
FY2022 Fluctuation
decrease
Ordinary income
79,09884,730
5,632
7.1%
Ordinary profit
12,89019,167
6,277
48.6%
Profit＊
6,752
9,387
2,635
39.0%
* Profit attributable to owners of parent【Hokkoku Bank】（Millions of yen)
Rate of increase or
FY2021
FY2022 Fluctuation
decrease
Ordinary income
68,41473,9185,504
8.0%
Ordinary income
11,28318,091
6,808
60.3%
Profit
5,954
9,043
3,089
51.8%
Ordinary profit
11,77813,033
1,255
10.6%(2)Capital adequacy ratio
FY2020
FY2021 FY2022 fluctuation
Capital adequacy
10.30% 13.04% 12.61% △ 0.43%
ratio(Consolidated)

millions yen

Hokkoku Bank

180
121

119

117

130

112

66

90

59

FY2020

FY2021

Net business profit

FY2022

Ordinary profit

Profit

連結自己資本比率の推移
Capital adequacy ratio(Consolidated)

13.04%

12.61%

10.30%FY202020年3月末FY2021
21年3月末FY2022
22年3月末HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

4

2. Medium-to Long-Term Management
Strategy-Update-

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Longer-Term Management Strategy 2022

※2022.4.28 announced

Medium-to Long-Term Management Strategy-Update Plans-※Will be updated every year

■Starting in 2021, the level and strategy that should be targeted in the medium to long term have been
updated every fiscal year
■We intend to grow and will concentrate on enhancing corporate value from April 2022 to March 2025.

3 Measures to Enhance Corporate Value
1.To improve capital efficiency

・Creation of surplus capital by conversion to domestic banks
・Achieve a total return ratio of 40% or more and repurchase shares up to the highest level of PBR atregional banks
・Policy not to hold strategic shareholdings, sell 50% in 3 years

2.Identification of incentives for management, employees, and shareholders

・Introduced a compensation system linked to ROE with the aim of achieving ROE5 of 0% in 2 years andROE8 of 0% in 2010 years

3.Supporting Growth through Private Equity

・Aggressively invest capital through 100% subsidiary QR Investment Co., Ltd.
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

6

Conversion to domestic banks■Conversion from International Banks to Domestic Standard Banks by Closing theSingapore Branch■Effectively utilize the newly generated JPY102.6 billion of surplus capital

7
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Establishment of ROE Targets
While converting to domestic banks and maintaining a stable equity ratio,
Aiming for ROE 5.0% (2 years from now) and ROE8.0% (10 years from now)ROE Performance and Planning
10 years from now
2 years from now※ ROE is calculated on an international
basis for FY2022 and earlier, and on adomestic basis for FY2023 and later.
8
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Policy on Distributing Profits to Shareholders
Aiming for a total return ratio of 40% or more through dividends and sharebuybacks

Total return ratio

FYE March
2022
ActualFYE March.
2023
A year later

60%

115%

FYE March. 2024
Two years later

FYE March.
2025
Three years
later

FYE March.
2027
5 years fromnow

FY3/2032
About 10 years
later

40% or more

⇒

⇒

⇒

Total dividends

24 Billion yen 25 Billion yen

ー

ー

ー

ー

Repurchase of theCompany's stock

30 Billion yen 90 Billion yen

ー

ー

ー

ー

Consolidated equity
ratio

9.94%

9.66%

8.0% or more

⇒

⇒

⇒

4.2%

4.5%

5.0%

⇒

⇒

8.0%

(Domestic Standards)

Consolidated ROE(Domestic Standards)

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

9

Policy for Reduction of Strategic Shareholdings■Policy of not holding all listed stocks among strategic stockholdings■Target to halve by the end of March 2025 (3 years later)
Reduction plan of policy on cross-Shareholdings

Reductionon half※ Strategic stockholdings are listed stocks held by
the Hokkoku Bank
※ Billions of yen
10
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Executive compensation plan, maximum term of office as a director■Incentive to increase the proportion linked to business performance and aim for sustainable improvement in corporate
value■At the same time, to strengthen the governance system, the maximum term of office as s director is determined.
<Composition ratio>

System of compensating directors<Revised Image>Medium- to longterm goals※Performance-based stock awards are restricted until retirement

Maximum term of office of directors
Director who is not an Audit andSupervisory Committee member(President)

1-year term of office. Provided, however, that the director shall not be elected as a
candidate for a director upon expiration of the term of office for a term exceeding 10
years.

Directors who are not Audit andSupervisory Committee members(excluding the president)

1-year term of office. Provided, however, that the director shall not be elected as a
candidate for a director after the age of 65 and the term of office expires.
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

11

Employee Stock Grant Plans■Introduce a stock grant system for employees to improve motivation and foster
ownership
Employee Stock Grant Plans
Performance
Indicators

ROE

Shares to bedelivered

Restricted
stockMedium- to longterm goals

If ROE exceeds 8%, including the amount ofstock grants, the level of compensation will
be at the top level for regional banks.

12
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Supporting Growth through Private Equity

QR Investment Co., Ltd.
Operate 5 funds (>JPY14 billion in total) for each life stage■Hokuriku Region Venture Fundーーー

QR Fund
2. Period of growth andstability■Noto SDGs fund
3. Stagnation and recovery

Billions yen

QRI Growth Support Fund

■QRI Growth Support Fund
Billions yen

Noto SDGs Fund
1. Founding
period

4. Regrowth and exit
Revitalization fundHokuriku Region Venture Fund

■Kariwa SME Revitalization FundJPY2 billion■QR Fund
JPY10 billion
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

13

Medium-to Long-Term Targets～Level of image over the medium to long term based on future environmental expectations and action policies-FYE March
2022
ActualFYE March.
2025
Three years
later

FYE March.
2027
5 years fromnow

FY3/2032
About 10 years
later

JPY19.2 billion

JPY21 billion

JPY23.1 billion

JPY37.7 billion

Consolidated Net Income

JPY9.4 billion

JPY12.9 billion

JPY14.4 billion

JPY24 billion

Revenues from Key Initiatives (Consolidated)(New business revenue including card leasing
and consulting)

JPY3.2 billion

JPY7.9 billion

JPY9.5 billion

JPY12.5 billion

4.2%

5.7%

5.9%

8.0%

Consolidated Operating Income

ROE (Consolidated)*※ ROE is calculated based on net income attributable to owners of the parent relative to Basel III core capital on
14
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.
a domestic base bank basis.

Medium-to Long-Term Target Levels (Details and Consolidated)FYE March 2022
ActualFYE March. 2025
Three years later

FYE March. 2027
5 years fromnow

FY3/2032
About 10 years
later

JPY23.8 billion

JPY24 billion

JPY24.3 billion

JPY24.8 billion

JPY7.2 billion

JPY11.4 billion

JPY13.3 billion

JPY17.4 billion

Card Business

JPY1.2 billion

JPY3 billion

JPY3.3 billion

JPY3.4 billion

Leasing business

JPY1.2 billion

JPY1.8 billion

JPY2 billion

JPY2.7 billion

Consulting & Advisory

JPY600 million

JPY2.4 billion

JPY3 billion

JPY4 billion

Market management

JPY29.4 billion

JPY19 billion

JPY16 billion

JPY22.1 billion

Total Credit Costs

JPY11.8 billion

JPY3 billion

JPY3 billion

JPY3 billion

General and administrative expenses

JPY30.3 billion

JPY31 billion

JPY28.9 billion

JPY25.4 billion

JPY6.9 billion

JPY8 billion

JPY6.3 billion

JPY4.3 billion

JPY9.4 billion

JPY12.9 billion

JPY14.4 billion

JPY24 billion

Interest on loans and deposits
Fees and commissions

System-related costs*
Net income※:Total of software development costs (depreciation expenses) and running costs (office outsourcing expenses,
HOKKOKU etc.)
FINANCIAL HOLDINGS, INC. All rights reserved.

15

Point of update
Point of update■Capital Strategy

Increase capital efficiency while maintaining the equity ratio
Aiming for ROE 5.0% in 2 years, and ROE8.0% in 10 years■Commercial loans

Strengthening Dialogue with Customers with an Emphasis on Pricing
Aim to improve yield by 0.1%

■Card Business

Build next-generation platforms that image BaaS over the long term
Increase in debit card penetration rate and number of transactions, and increase inmerchant sales strategy and occupancy rate by market■Leasing business

Expand share of finance leases and deferred payments
Efforts to create new profit opportunities■Consulting&Advisory

Increase number of bases and expand consulting domains
Developing an approach by segment■Systems

In-house development and operation
Cooperating companies ⇒ Reduce system costs by shifting personnel to FHD employees■Total Credit Costs

Allocate human resources to support management improvement, mainly at the executive
officer level, aiming to reduce the ranking and improve the ranking
Changes in loan loss reserve methods and sharing of ratings and borrower classifications
16
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Medium-to Long-Term Management
Strategy-Card Business■Overall strategy
・Utilize next-generation platforms that image BaaS・Creation of a cashless environment with an eye to enhancing regional value (regional revitalization and operational
efficiency)■Strategy Details
・Focus on increasing penetration of corporate and individual debits and transaction volume
・Focus on increasing the number of franchised stores and improving occupancy rates through strategies that differentiate eachmarketBaaS image
BaaSのイメージ

Card Business Revenues (Billions of yen)
40

33

35

34

Traditional
APIs
従来のAPI

platform
プラットフォーム

FinTech Operators（フィンテック事業者）

FinTech Operators/Card company（フィンテック事業者・カード会社）（金融機関）
financial
institution（金融機関）
financial institution

Collaboration agreement and system
個別に連携契約とシステム開発が必要

Form a platform in the cloud.
クラウドにてプラットフォームを形成

30

30
25

17

20
15

12
10

10
5
0
FYE March.
2021 Actual

FYE March2022 Actual

FYE March.
2023 (1 year
from now)FYE March.
2025 (3 years
from now)FYE March.
2027 (after 5
years)

FY3/2032 (2010years from now)

development are required

A system that allows you to entersmoothly without cost.
コストをかけずに円滑に参入ができる仕組み
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

17

Medium-to Long-Term Management Strategy-Leasing Business■Overall strategy
・Expand share of existing products: Leverage the benefits of integrated HD sales
Establishment of a resident system of lease specialists at regional bases under the sales
department system
・Creating new business opportunities: Entry into new markets
35,000Million yen

2,800
Contract amount (lease)
Contract amount (deferred payment)

2,600

30,0002,400

Expand share ofexisting products・Finance lease・Deferred payment market

25,0002,200
20,0002,000

15,000

1,800
1,600

Creation of new profit ・Establishment of a reuse system
opportunities⇒ Increase exit earnings
・Entry into new adjacent markets

10,000
1,400
5,000

1,200

0

1,000
2021/32022/32023/32024/32025/32027/32032/3

18
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Medium-to Long-Term Management Strategy -Consulting & Advisory■Basic Strategy
・Comprehensive consulting and advice: Provide consulting in line with customer growth by responding
to multiple issues, and expand bases
・Expansion of Customer Base: Large Enterprises/Local Governments, Deposit only customers/NonBusiness Partners, Nationwide and Overseas Outside Hokuriku region
・Expansion of problem-solving areas: Strengthening of collaboration with external partners<Strategy for the Fiscal Year Ending March 2023>■Efforts to increase the number of consultations (800⇒1200 cases)

CCI_Longer-Term Management Strategy

・Core Client Approach Based on Industry-Specific Organizational Structure・Introduction of new menu utilizing HD's own experience and knowledge
・Strengthen approach to net depositors, non-business partners, etc.
40

30
12

6
FYE March
2022

FYE March.
2023

24

19

FYE March.
2024

FYE March.
2025

Existing medium-to long-term planFYE March.
FY3/2032
20275(after
(2010
years from
Long-term objectives now)

■Initiatives to Raise the Consulting Unit Price・From hourly price to value-based fee setting
・Strengthening approaches to large corporations and local governments<Medium-to long-term strategy>■Company-wide reform support through hands-on support■Supporting enhancement of corporate value through collaboration
with QRI■Large-scale and core system development and sales through in-housedevelopment of IT tools
19
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

<Reference Materials> Established a subsidiary in Singapore■As a subsidiary of consulting firm CC Innovation,
Started preparations to establish a subsidiary in Singapore[Background and Purpose of Establishment]
・Focus on strengthening consulting functions in line with financial functions as the
FHD Group strategy
・Compared to the Singapore branch format, it is easier to exercise consulting
functions
・Loans and other operations can be covered by local corporations and domesticbanking operations.

Hokkoku Financial Holdings' Overseas Network

Hokkoku Bank
Shanghai
Representative
OfficeConversion to domestic banks allows for more flexible capital
strategies

Overview of the Singapore subsidiary
Trade Name(tentative) CC Innovation Singapore Pte. Ltd.

Date of opening

October 2022 (Established July 2022)

Main
Operations

Consulting, investment and loan operations, etc.

To beopenedCC Innovation
Singapore Co., Ltd

Hokkoku Bank
Ho Chi Minh Representative
Office20
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Medium-to Long-Term Management Strategy-System Investment■System development costs: Reduce costs by increasing the proportion of FHD employees in North Korea while maintaining thesystem division's development structure■Cost of running: Reducing costs by internalizing or abolishing 9% of 120 subsystems■Productivity of development: Improve productivity at development sites through agile development and DevOps

Transition of system costs (Billions of yen)

30

90
80
70

80
65

■System development costs (software
depreciation)■Running expenses (non-personnel expenses)

62

60

42

50

System costs
Peak

40

30

Comparison with results
after 2010 years▲ JPY2.2 billion

20

System Development Personnel Expenses (Billions of yen)
29
28
26
25
21

18

13

9

11

13

16

10
0

7
FYE March 2022
Actual43

FYE March. 2025 FYE March. 2027 5 FY3/2032 About 10
Three years later
years from now
years later

Northern FHD employees

IT Partner engineers

40
System development personnel
30

29

20
10

38
25

32

0
FYE March. 2027 5
years from now

340
226

14
FYE March 2022 Actual FYE March. 2025 Three
years later

400

FY3/2032 About 10
years later

0

114

364

339

333

190

133

97

174

206

236

FYE March 2022 FYE March. 2025 FYE March. 2027 5 FY3/2032 About 10
ActualThree years later
years from now
years later
Northern FHD employees IT Partner engineers

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

21

Medium-to Long-Term Management Strategy-Credit-Related Expenses■Overall strategy<Reference> Loan coverage ratio (*1) (Fiscal period 2021.3)

・Improvement support through early support for customers
・Improve relationships by sharing financial conditions and issues

with customers*1 Loans = Coverage ratio of claims disclosed under the Financial Reconstruction Act
Calculation formula: (Amount of protection by collateral, guarantees, etc. + Allowance
for loan losses)/Loans and bills discounted*2 Source: Financial Services Agency website, "Status of Claims Disclosed under the
Financial Reconstruction Act, etc."

・To recording reserves according to relationships
15,000Credit-related Expenses Results and Forecasts (Millions of yen)
11,82010,000

5,000
5,000

3,000

0

Hokkoku Bank :96.5%
Average of regional banks (*2): 79.0%■Improvement support through early support for customers
・Established a dedicated person, including an executive officer,
within the corporate banking division.
CC Innovation and Meetings with customers directly with sales
Branches, provide support for improvement■Improve relationships by sharing financial conditions andissues・Vision for the future, past and present, based on financial
conditions, share and aim to resolve issues for this purpose■Provision based on relationship・Classification in the calculation of reserves according
to the level of relationship
Adjust notches to reflect them in reserves
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

22

Changes in loan loss reserve methods (sharing of ratings and borrowerclassifications)
Expansion of sales efforts based on customer relationships and understanding ofbusiness potential to the criteria for recording allowance for doubtful accounts
Change in accounting standard for allowance for doubtful accounts■In order to implement the recording of appropriate provisions in line with actual conditions, the method waschanged from the method based on the actual bad debt ratio (on a value basis) to the method based on theprobability of bankruptcy (on a number of cases basis).
■Changes to standards based on customer relationships and understanding of business potential, in addition topast financial information, in order to record reserves based on the future potential and growth potential ofcustomers

Share ratings and borrower classifications with customers■Share the ratings (borrower classification) with the desired customers, and drive with the ideal image and theattainment of the ideal image in the future.

23
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Forecasts for the fiscal year ended March 2023
・We expect that the economic impact of new corona virus infection will continue to be somewhat sustained in the fiscal
year ending March 2023,Net income is expected to increase due to the effects of each measure.

・The dividend forecast is JPY100 per share, an increase of JPY10. (Total return ratio: 114%)○Forecast of Results for the Fiscal Year Ending March 2023
【Hokkoku Financial Holdings - Consolidated】（Full year） （Interim period）
FY2021
resultOrdinary profit
profit *1

19,1679,387

FY2022
forecast

16,500 Ordinary profit
10,000 Interim net profit* 1:profit attributable to owners of parent【Hokkoku Bank -Non-consolidated】
FY2021
resultOrdinary profit
profitNet business profit

18,091
9,043
13,033（Millions of yen）
FY2021interim result*2

15,8179,875

年間配当
うち中間配当うち期末配当

9,000
5,500

* 2：For the fiscal year ending September 2021, Hokkoku Bank's consolitated figures（Full year） （Interim period）
FY2022
forecast

14,500 Ordinary profit
9,000 Interim net profit
11,500 Net business profit

FY2021interim result

15,255
9,618
6,344○Dividend per share*3

FY2018
80yen
40yen
40yen

FY2022interim result

FY2019
70yen
35yen
35yen

FY2020
80yen
30yen
50yen

FY2021
90yen
40yen
50yen

FY2022interim result

8,000
5,000
6,000
（Forecast）
FY2022100yen50yen
50yen*３：From the fiscal year ending March 2019 to the fiscal year ending March 2021, the dividend results of Hokkoku Bank
For the fiscal year ending March 2022, the interim dividend of Hokkoku Bank, and the year-end dividend of Hokkoku HFD are shown
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

24

3. Business Model

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Hokkoku Financial Holdings' Value Creation Process
Corporate Philosophy, Brand, and Sustainability Policy

26
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Group synergy of Hokkoku Financial Holdings
・As an account manager, bankers effectively utilize the functions of the FHD in Northern Country to provide customers with higher-quality services
・The functions of consulting, investment advisory, regional investment banking, management advisory, card and cashless, and system development
and operation from Hokuriku to Japan and the world・Contribute to the creation of an open ecosystem for new regional financial institutions by expanding and sharing with other financial institutions
with different values

Customers

Main functions of the northern FHD

Banks (Hokkoku Bank)
Bank staff = Account manager
Card(BK, North)(NorthCountry
CreditService)

Investment
and fund(QR
Investment)

Consulting(CC
Innovation)
Servicer(Collection ofreceivablesfrom
Hokkoku)
Investment
advice(FD
Advisory)

Loans anddeposits
・
Settlement(BK, North)

Systems(Digital
Value)

Lease(BK, North)(Generallease)■Mainly in the 3
prefectures of
Hokuriku

Consulting (CC Innovation)
Regional Investment Banks (QR
Investment)

BPO
(BPO
Management)

EC site(COREZO)

Leasing (Hokkoku Bank and Hokkoku
General Leasing)

Business Domain

Investment Advisory (FD Advisory)
System Development and Operation(Digital Value)■From the 3
prefectures of
Hokuriku
Expansion to Japanand the world■Other Financial
Institutions

Card cashless
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

27

Sustainability Policy and Materiality[Sustainability Policy]
・Hokkoku Financial Holdings aims to work together with all stakeholders, including local communities, to realize a sustainable society by actively
working to resolve ESG (Environmental, Social, and Governance) issues through its business activities.
・We believe that the resolution of ESG issues through our business activities and the virtuous cycle of sustained improvement in earnings brought
about by them will lead to the realization of our company philosophy "To be a prosperous future, expand the circle of mutual trust, and build aprosperous future together with the region."28

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

FHD's business model
2017～

2020～

①Loans with Push &Performance
Assessment①Strategic Cost Reduction &Productivity Improvement②Settlement
commissions on aside-by-side basis②Expansion of fee business throughleasing and card business①Consulting & Advisory②Platforms and systems in a broad sense③Integrated management of loans, leases,
and equity④Fund management to core business(Market Division)⑤Fund and asset management consulting
for corporations, individuals, and local

From the customer's perspective
As a regulated industry "Next-Generation Regional
Business Model
Commercial Banks" Model③Management of
surplus funds by
Buy&Hold③Launch of paid consulting forcorporations

From the customer's perspective underthe HD system"Next-Generation
Regional Comprehensive Company" Modelgovernments[Drivers] ①Recurrent Education ② System Investment[Base Concept] ①ESG (Management Philosophy & Thorough Implementation of Brand Philosophy)②Communication x Collaboration x Innovation
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

29

①Consulting & Advisory
Customers

CC Innovation(Consulting)
Bank officers(Corporate RM, FA, Teller)

QR Investment(Investments
and Funds)➢ Focus on customer relationship level
rather than loan balance and share➢ Thorough sales based on understanding ofbusiness potential(Financing is 1 of the means of solving problems)➢ Communication by Industry, Size, Level, andPhase

FD Advisory(Investment
Advisory)

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

30

②Platform & System for Regional Revitalization➢ Support for establishment of industry-specificplatforms(Kintone, Dynamics365, Public cloud architecture, etc.)➢ SaaS improvement of general affairs and accounting
divisions, BPO support

Digital bank, cards

Systemdevelopment

Consulting

EC siteBPO➢ Integration of COREZO and digital banks⇒ Regional system platform⇒ Open digital regionalism through API data linkage,
Realizing a regional digital world➢ Sophistication of payment systems, including cards(Public-Cloud) BaaS compatibility➢ Collaboration with regional financial institutions thatshare values and strategies
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

31

③Toward Integrated Management of Loans & Leases &EquityLoans

EquityLeases➢ Integrated management of lending,leasing, and investment banking functions
based on understanding of businesspotential and transaction policies➢ Efforts to Enhance the Functions ofCorporate Digital Banks ⇒(To Customers)
Improve productivity, improve capitalefficiency, visualize funds, and strengtheninternal management systems➢ Expansion of lease equity business andsystemization through in-houseproduction of processes
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

32

④Fund management to core business■Creation of surplus capital by switching to domestic banks ■ Reform of investment strategy, organization, andhuman resources⇒ Market management to core business■Expanding Business Domains through Collaboration with FHD Group Companies and Partner Companies in Northern
Country

Hokkoku Bank Corporation Division
CC Innovation
HokkokuBank
MarketManagement
Division

QR Investment• Quantitative evaluation of strategic
stockholdings• Industry analysis• Establishment of Private Placement
Funds• Valuation of investments• Market strategy consulting• Asset management consulting• Fund structuring

Partner companies• Introduction of multi-asset funds• Introduction of RAF
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

33

⑤Asset management for corporations and individuals
・The need for comprehensive and neutral advice
that is not limited to the company's services
・Regional financial institutions facing issues insecurities management outsource part of theirinvestment

Investment advisory firm
Established FD Advisory
2021.10.1 Commencement of business

FD Advisory Business••••

Asset Management
Asset succession andbusiness succession
Insurance and real estateWill trust, family trust, etc.

Fund structuring
adviceFor specific investors
consulting

For individualsl life
planning•••

Providing Operational
SolutionsSupport for establishment ofoperational systems
Support for review ofbusiness processes••

Advising on fundmanagement strategies
Advice on fund investment
decisions

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

34

3 Pillars for Realizing Business Models
Creating Value and Achieving Sustainable Growth in Local Communities-Realizing a Sustainable Society[Digital]
Penetration of digital banks ⇒ Convenience and high productivity for all customers[Employees] Consulting, Advice, Study Meetings ⇒ What People Can Do[Branches] Saturday, business, and residence-oriented design ⇒ To consulting, advising, collaborating, and educational venues in face to face

All customers
Employees

Facility (Branches)・"face-to-face" and "net" (non-pair)
Fusion of facets)

・Implementation of Climate Change Measures and Environmental Measures
・Proposal of advanced examples of environmental responses

・To raise the level of dialogue
・Recurrent education and risk killing・Environmentally Responsive and Residential Communities Toward a
Common Awareness among Communities

・Further Enhancing Skills and Organizational Capabilities

・Develop and produce human resources capable of contributing to theevolution into a quality region

・Promotion of local environmental conservation and energy conservation

・Collaboration with companies, local governments, and universities

・Business process ofbusiness processes
・AI Consulting & Advice

Digital・Cloud-first technology
・In-house development + collaboration
・Shift of employees to the digital field(20-30% of employees will be in the digital field)

・Digitization of the region

・Collaboration with companies, local
governments, universities, and IT companies

Based on IT as a base for business development ⇒ Realization of "Open Digital Regionalism"ー Integrated business platformー

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

35

3 pillars to 1-[Digital] for realizing business model
Common "digital bank"

Our idea of "digital bank"✓ Realizing speedy development by narrowing down target customers
and functions

Digital bank(Internet Branch)

Hokkoku Cloud Banking (Individuals)
Hokkoku Digital Banking (Corporate)

Traditional banks(Products and Services)

・Targeted only for highly digital literate
individuals and companies
・Have limited functions✓ Digitization of products and services to all customers✓ Promote the digitization of the entire region

・Digitize all users
・Digitize all functions

Digital Benefits for All Customers in the Region!

Change in Business
Model
Northern DX
Cashless
Fund・Complex but necessary operations as social infrastructure(Account transfer, etc.)
・Digital vulnerable (elderly people, micro enterprises, etc.)

✓
✓
✓
✓

Opened a 24-hour web accountNo hang
No passbook
No need for brick-and-mortar
stores～Change in the raison d'etre ofstores ~Cloud banking
classes at all stores
Web access(corporate IB)classes fromscratchFor no basic fees
for bothcorporations
and individuals

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

36

3 pillars to 2-[People] for realizing business model
Human Resources Strategy Framework of the FHD
Producing humanresources➢ Develop professional human resources who can support career autonomy and contributeto value creation➢ Improving the level of dialogue and enhancing collaboration

・Contributing to the Creation of Value in
the Region with the Knowledge Acquired at
Hokkoku FHD

With a high degree of satisfaction
Career Review and Wage Structure
・Performance Evaluation + Personnel Evaluation → Career Review
Supporting Career Autonomous and Human Resource Development
・Wage system that emphasizes skills, roles, and contributions
・Bonus: Stable payment + Performance-linked stock grants

Organization that can leverage
human resources

Recruitment

Realizing
corporate ideals

Flexible hiring

Creating Value for Local
Communities
・Improving Quality

Shared values - a ・Strengthen year-round hiring and mid-career
hiringcommon・Implementation of advance payment of
retirement allowancephilosophy
・Increase wage base for young mid-level
employees, including starting salaries

Respect for Diverse Values
Support career autonomy
・Treatment and staffing with respect to career plans
・Lifting of the ban on side business・To create an environment in which people withdisabilities can work together

Sophistication of the human resource
development system

Ideal working
environment

Framework for
improving skills

・Effectively Utilizing Advanced External Knowledge
・Support for MBA acquisition
・Visualization of skills through in-house developed
HRM system (flexible arrangement possible)

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

37

3 pillars to 3-[Facility ①] to realize business model
Holdingcompany"Real" Stores in the "Digital" Thinking of Northern FHD
Improvingfinancial
literacy

Do not sell "goods"

For each individual of ourcustomers
Place to provide services

Place to maximize CX/UX※CX: Customer Experience
UX: User Experience

Digital bank+Branches

Saturdaybusiness

DigitalOMO

Improved
literacyIn
comfortGood
quality※OMO: Online Merges with Offline (a globally integrated on-line and offline)

Providing value (useful) information through digital = Providing
value
HOKKOKU FINANCIAL
HOLDINGS, INC. All rights reserved.

38

3 pillars to 3-[Facility ②] to realize business model
Holdingcompany

Initiatives for carbon neutrality
Introducing the "ZEB" concept to store design-Taking the lead in▶ implementing ESG management in the regionFull Banking Branches• Basic policy: Nearly ZEB(Reduce primary energy consumption by 75% or more)• Installation facilities
Photovoltaic power generation, high-efficiency air
conditioning and ventilation, natural light
Enhancement of external performance, sunlight shielding,and use of groundwater

Retail Branches• Basic policy: ZEB Ready(Reduce primary energy consumption by 50% or more)• Conservation of local environments• Promotion of energy saving

Realization of a sustainable society
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

39

4. Overview of Financial Results for the
Fiscal Year Ended March 2022

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Loans Outstanding and Yields by Segment ~・Loans to individuals increased. Commercial loans declined slightly, but the ratio of loans to SMEs was at a high level of 76.1%.
・Yields declined due to an increase in housing loans with relatively low yields and a decrease in business loans.

Breakdown by area

Yield of Loans and Loan balance
1.13%
Billion yen

1.06%

3,699
3,831

3,209

1.02%

(Billions yen)
0.95%

0.92%

3,425

3,152

3,135

3,026

3,175

2,973

19,72820,012

Change from Change from
End.Mar2020 End.Mar2021 End.Mar2022
Mar.2021
Mar.2021
Total of 3prefectures in
Hokuriku area

23,99024,08923,956△ 133△ 0.6%

Ishikawa

18,202

18,167

18,119△ 48△ 0.3%

Toyama

4,622

4,718

4,645

△ 73

△ 1.5%

Fukui

1,165

1,202

1,190

△ 12

△ 1.0%

Others

2,189

2,250

2,083

△ 167

△ 7.4%

2,911
17,38718,921

19,931

End Mar. 2018 End Mar. 2019 End Mar. 2020 End Mar. 2021 End Mar. 2022
Local goverments and public corporations

Medium-and large sized companies

Small and medium-sized enterprises,etc

Interest on loans

Breakdown by company size

Breakdown by type
(Billions of yen)

End of March
2020

(億円)

Compared toCompared to
End of March. End of March March 2021
March 2021
2021
2022
Increase/Decre
Rate of changease

End ofMar.2020

End ofMar.2021

End ofMar.2022

Change from Change from
Mar.2021
Mar.2022

Meter Loan

26,17926,33926,039

△300

△1.1%

Business loans

12,867

13,18012,757△ 423△ 3.2%Of which, SMEs, etc.

19,72820,012

19,931△81△0.4%

Consumer loans

9,886

10,006

10,146140

1.4%(Ratio of SMEs, etc.)

75.3%

75.9%

76.5%

―

―

Housing loans

9,480

9,642

9,819

177

1.8%

3,026

3,175

2,973

△202

△6.3%

405

363

327

△ 36

△ 9.9%Of which, medium-andlarge-sized companies, etc.
Of which, local
governments and public
corporations

3,425

3,152

3,135

△17

△0.5%

Othe loans
lical goverments andpublic corporations

3,425△ 0.5%INC. All rights reserved. 41
3,152
△ 17
HOKKOKU3,135
FINANCIALHOLDINGS,Loans and bills discounted ~ Yield by segment ~Yield by Segment

Average Contract Interest Rate
(％)

(％)

FY2019→FY2020→

FY2021→

FY2022

1.276-0.0391.237-0.0691.168-0.029

1.139

0.912

-0.0580.854-0.0140.840-0.021

0.819

Business loans

1.157

1.127

0.899

0.894

Secured

0.768-0.044

0.724

0.005

0.729

-0.0080.721

Consumer loans

0.646

0.694

0.575

0.526

Unsecured

3.359-0.0543.305-0.0783.227-0.054

3.173

Local
goverments

0.581-0.0620.519-0.1400.379-0.075

0.304

Businessloans
Consumerloans

FY2019FY2020

FY2021

FY2022

Yield by Segment
Bussiness loans

Yield by region (business loans)

(%)

(％)

1.4
1.3

FY2019→FY2020→

FY2021→

FY2022

Total of3prefectures

1.428-0.0631.365-0.0801.285-0.037

1.248

1.1

Ishikawa

1.410-0.0591.351-0.0771.274-0.0351.239

1.0

Toyama1.506-0.0761.430-0.0971.333-0.046

1.287

Fukui

1.375

-0.0881.287-0.0661.221-0.025

1.196

Others0.553-0.001

0.552-0.0180.534-0.008

0.526

1.323

Consumer loans

1.276

1.237
1.168

1.139

0.854

0.840

0.819

2020.32021.32022.3

1.2

0.9

1.076

0.912

2018.32019.30.8
0.7
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

42

Operation of negotiable securities■Diversify investments from a medium-to long-term perspective and secure earnings through flexible trading■In FY2021, the investment balance was JPY1.3009 trillion due to the investment reinforcement, and the profit was secured at JPY28.1
billion.

Balance of securities (book value)

Changes in Realized Gains/Losses by Asset(Billions(Billions of yen)

300of yen)

281

250
200

202
187

129

150

115

78

28
72

100

57

45

60

50

35
6
30

42
1
27

32
23

FY2017FY2018FY2019

0

8

150

16
8
FY2020164

923
FY2021

Valuation gains (devaluation losses) on securities(Billions of
1000
yen)
800

840

882

784

600

499

400

Yen Bonds
Mutual funds

Foreign
Bonds

StocksMulti-asset

335

200

0
FY2017FY2018FY2019FY2020

FY202143

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Portfolio of Market Sectors (Excluding Strategic Stockholdings)■Equity securities held for net investment account for about 60% (based on market value)■The portfolio of the market sector excluding strategic stockholdings has an unrealized gain/loss of JPY11.2 billion due to the effect ofdiversification strategies.
■Increase investment in multi-asset funds to strengthen diversification and stabilize net interest income

Stock Investment Status as of the End of FY2021

Operational Status in FY2021

Stock balance (market value)
JPY140 billion

30

387

Book value of net
investment shares

138
320

Book value atthe end of
the period(Billions ofyen)

Appraisal
profit/loss(Billions of
yen)

Net
investment
Purposeshares525

320

Yendenominated
bonds

8,189

▲55

Foreign bonds

1,880

▲115

Investment
trusts746▲1Multi-Asset

1,500

▲37

Of which, net investment of
JPY84.5 billion

525
Net unrealized gains
on investments instocksBook value ofstrategic
stockholdings
Gain on valuation ofstrategic
stockholdings

FY2022 Forecast(Excluding strategic stockholdings)

Total

Balance at theend of theperiod (Billionsof yen)

475
9,220

1,866
824
2,500
44

HOKKOKU FINANCIAL
rights reserved.
12,841112 HOLDINGS, INC. All 14,885

Key Initiatives: Operating Revenues: Card, Leasing, and Consulting
Priority Initiatives Business Revenew Transition
3,000

609

2,000

1,252

534

601

1,362

1,246

1,478

1,602

1,000

1,392

(Millions ofyen)※The 2022.3 period cardbusiness includes JPY373
million impact of the changein accounting standards.

※
0

FY2020Card business

Consulting

FY2021
Leasing business

FY2022
Consulting

2020.32021.32022.3(Actual)(Actual)(Actual)(Millions of
yen)

609

534

601

Leasing business

1,252

1,362

1,246

Card Business

1,392

1,478

1,229

Total

3,253

3,374

3,076

45

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Card Business■ Small businesses have also benefited from the cost advantages of conducting their own card merchantoperations, and the cashless environment in the region is steadily expanding.
Number of debit cards issued (cumulative)

Number of card merchants (aggregate)(Stores)(Thousands of sheets)
282

300

6,654

6,386

6,114

239

250

7,500
6,000

206
200

4,078

4,500

154
150

109

3,000

2,751

100

1,500

50

0

2018.32019.32020.32021.32022.302018.3

Changes in Card Business Profit

2019.32020.32022.3

E-commerce malls (COREZO)
Changes in the number of(Millions of yen)
941

1,000

1,036

stores
300

762

265

206

200

537
500

2021.3100

371※2019.5.20 Open

24

32

0

2019.5 2020.3 2021.3 2022.3

02018.32019.32020.32021.32022.3※2022.3:Calculated based on standards prior to the adoption of the new accounting standard

46
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

5. Reference Materials

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Efforts to Reform Operations and Improve Productivity
Within DX to 2015

2015～ Customer DX
cloud banking release2021～ ⚫⚫ Corporate
PaaS of the accounting system

2013

2009

⚫ Consolidation of general affairs divisions⚫ Introduction of IT infrastructure restructuring and Surface(Microsoft
into planning divisions⚫ Consolidation of HR divisions into planning divisions(to strategically reduce non-personnel(Integration of Corporate Planning and Human Resources Strategy)
expenses)⚫ Examination Department abolished⚫ Consolidation of financing and business operations into the General
Administration Department⚫ Introduction of the loan limit system(Strategic Credit Efforts,
Responding with a sense of speed)⚫ Reduction of loan administration and⚫ Relocation of new head officeconcentration of headquarters⚫ Branch back-office operation⚫ Accelerating the in-house production ofsubsystems

2010

2014

2007

Simplification and centralization of
headquarters⚫ Established the Systems Department(Strategic system investment)

2000～⚫ Introduced area sales system⚫ Commencement of store

2016

2012

⚫ With Surface to everyone⚫ By tablet

Commencement of sales of financial
products⚫ BPR and systematization in the loandivision⚫ Elimination of loan clerks at branch
officesSmartphone distribution

2021⚫ HOKKOKU LIFE + Started⚫ BankVision on Azure operation⚫ In-house production of subsystems⚫ Development of new ATMs
⚫ Full renewal of IT infrastructure⚫ Established Hokkoku Financial HD⚫ Introduction of Microsoft Teams⚫ Acquired DX certification (first regional

2020(FAT of business terminals)

consolidation⚫ Establishment of a call center

2017

2019

⚫ Introduction of⚫ Announcement of account cloud conversion project⚫ Established Digital Value Co., Ltd.
⚫ Northern Cloud Banking (Personal Version) Release

2011

2015

⚫ Renovation of⚫ Accounting systemgroupwaremigrationbank)

corporate mass
strategy

48

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Sustainability Initiatives ①
・"Climate Change Response and Environmental Conservation" set as materiality
・Policy of implementing a menu of ESG-compliant consulting for customers and regions and working to contributeto fostering ESG momentum in the region◆To Hokkoku Bank's support for TCFD recommendations in 2021.5
Announced (also planned to be endorsed by FHD)
Scenario Analysis (Transition Risk and Physical Risk) Results
Scheduled to be announced◆In FY2020, CO2 emissions were reduced by approximately 37% comparedto FY2013 due to reduced electricity consumption, mainly due to therelocation of the head office building in 2014.
◆Targets for reducing CO2 emissions in FY2030 set at a △ of 60% comparedto FY2013 through initiatives such as store consolidations and closures andefforts to convert rebuilt stores to ZEBs
Compared to
FY2013
Approx. 37%
reduction

10,000
8,000
6,000
4,000
2,000

0
FY2013

FY2014FY2015■CO2 emissions (absolute) (tons/ CO2)

FY2016FY2017FY2018FY2019FY202049
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Sustainability Initiatives ②・Our business activities (consulting, improvement of cashless environment, etc.) themselves lead tosustainability
・Maintain customer and regional ESG response as a menu for consulting, and work toward
contributing to fostering ESG momentum in the region
Our Approach to ESG/ SDGs

Compared to
FY2013
Approx. 37%
reduction

50
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Sustainability Initiatives ③
・Deepen ESG/ SDGs initiatives to include "integration into management," "implementation of company-widereforms," "PDCA," etc.
・Beyond the Declaration of SDGs, Toward Effective Consulting

Lead to theachievementof ESG-based
management
and SDGs
Consulting
menuCompared to
FY2013
Approx. 37%
reduction

51
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

Major Figures ①(Million yen)

FY2022FY2018FY2019FY2020

FY2021

43,91142,88247,53838,727(45,041)(41,509)(41,584)(40,954)

Net interest income

39,19735,55634,87634,25935,5091,250

Fees & commissions
Other business profit

5,332
△ 618

5,604
1,722

5,938
6,723

5,737

4,918
2,761

△ 819
4,030

Gain/loss on bonds
Expenses△ 1,129
28,346

1,372

5,953

1,353

28,256

Personnel cost

14,441

Non-personnel cost
Taxes

Changes in gain/loss(Non-consolidated)

Gross profit(Excluding gain/loss on bonds△ 1,269

YOY Change
4,463
43,190882(41,836)

29,422△ 2,226
29,17528,802

3,579
△ 373

14,372

14,261

13,95813,326△ 632

11,9581,946

12,004
1,879

13,062
2,098

12,9752,241

13,479
1,996

504
△ 245

16,694

13,253

12,162

11,77813,033

1,255

△ 469

203

2,674

3,060

3,074

14

Net business profit(after reserve)

16,034

14,422

15,441

6,491

11,312

4,821

Expenses related to portfolio problems△ 1,293△ 1,642△ 3,464

4,792

6,778

1,986

1,636
2,095

1,309
3,062

3,975
7,103

13,2398,335

15,246
8,772

2,007
437

63

69

17

72

27

△ 45

Ordinary profit

14,741

12,78011,977

11,28318,091

6,808

Extraordinary gain/loss

△ 629

△ 710

△ 1,154△ 897△ 3,203△ 2,306

Profit before income taxes
Profit14,112
9,479

12,0708,023

10,823
6,676

10,385
5,954

14,887
9,043

4,502
3,089

（△）

Net business profit
Provision of reserve for possible loan losses①（△）

Gain/loss on equity
Amount of credit costs②
Recoveries of written off claims③（△）

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

52

Major Figures ②(Billions of yen, %)Averagebalance, yield,
etc.

FY2018Average balance

FY2019Yield

Average balance

FY2020Yield

Average balance

FY2021

Yield

Average balance

FY2022

Yield

Average balance

Yield

Loans

23,456

1.13

24,655

1.06

25,577

1.02

26,2150.95

26,0690.92

Securities

9,803

1.52

10,080

1.31

9,389

1.09

9,857

0.93

11,8530.95

Call loans, etc.

7,752

Total interest-earning assets

41,012

1.03

45,412

0.88

46,0250.80

47,7390.73

52,8100.68

32,5070.01

33,8330.01

35,0770.00

38,2520.00

41,0070.00

Negotiable certificates of deposit

1,036

0.02

919

0.01

1,164

0.00

976

0.00

532

0.00

Call money, etc.

7,528

Total interest-bearing liabilities

41,071

Deposits

10,676

11,05810,7040.07

11,6669,883

45,4580.10

46,126

14,888

9,062
0.04

48,29012,0030.01

53,5420.00(%)

FY2018FY2019FY2020

FY2021

FY2022YOY Changes

Interest margin for total fundinterest rate

0.27

0.16

0.12

0.12

0.14

0.02

Gap on yields of deposits and loans

1.12

1.05

1.01

0.95

0.92

△ 0.03

Expense ratio

0.84

0.81

0.81

0.74

0.69

△ 0.05

62.93

68.07

70.75

71.24

68.85

△ 2.39ROA (based on net business profit)

0.20

0.16

0.13

0.11

0.16

0.05

ROE (based on profit)

3.81

3.12

2.75

2.39

3.53

1.14

OHR

53

HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.

We are prohibited from copying or duplicating this material or distributing it to third
parties without obtaining prior approval from Hokkoku Financial Holdings, Inc. This
document has been prepared solely for the purpose of providing information and is notintended to solicit the purchase or sale of any particular security. All or part of theinformation contained in this document is subject to revision or change without priornotice. These materials contain forward-looking statements. Please note that thesestatements are not guarantees of future performance and may differ from the targets due
to changes in the business environment and other factors.

Please address inquiries on this document to

Hokkoku Financial Holdings, INC.
General Planning Dept. PR & IR Section
E-mail: cyosa@hokkokubank.co.jp
HOKKOKU FINANCIAL HOLDINGS, INC. All rights reserved.