Fiscal 2023 Earnings Briefing Materials(April 1, 2023 – March 31, 2024)

Iyogin Holdings
June 7, 2024

INDEX

I. Toward Next 10 Years of Growth
II. Efforts Toward Enhancing Corporate Value
III. Summary of Earnings for Fiscal 2023

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐1‐

Toward Next 10 Years of Growth
We will implement structural reforms to elevate our “DHD model” toward next 10 years with last three Medium-Term
Management Plans as foundation
Declining population,
Prolonged ultra-low interest rates
aging population with low
birthrate
Increasing demand for
Expanding regional
business succession
disparities
Decreasing business
Emerging fintech
officesbusinesses

Outflow of payments anddeposits to non-financial
sectors
ESG/SDGs
Deregulation
Decarbonization

Non-financial sectors entering
financial sector
Diversifying individual lifestyles
and value

COVID-19

Digitalization

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

”Commencement of
DHD Bank”“Challenge for new growthstrategy”

 Commenced ICT consulting business Abolished commendation system Adopted business feasibility assessment
 Opened Singapore Branch

Cancellation of negativeinterest rates

 Commenced staffing business

Fiscal 2021 Medium-Term
Management Plan

“Deepening and evolving DHD
model”
 Improved finance scheme

Initiatives for
BPR Simplified clerical work at branches,
centralizing to headquarters

 Commenced Iyogin Advertising Services

Released DHD services
 Introduced “HOME”

 Introduced “AGENT app”

 Introduced “SAFETY”

 Introduced Iyogin Business Portal

 Introduced next-generation branches Introduced micro branches

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

 Introduced RPA“Elevation of DHD model“
Target level

ROE at 7% or higher
Financial accounting, net asset baseMateriality

 Established Iyogin Digital Solutions

Revised branch functions anddeployment
 Introduced Group Head system

After Fiscal 2024 MediumTerm Management Plan

Climate change
andenvironmental
burdenPopulation
decline, aging
population withlow birthrate

Sustainable
development oflocal economies
and industries
Improvements
in human capital

Seeking integrity

 Introduced new branch system‐2‐

Business Infrastructure That Supports Growth
Opening Singapore Branch

Release of DHD Services

 We opened a branch in Singapore, a global maritime city, to utilize
our knowhow of ship finance accumulated over many years

 Released as most important channel along with branches Number of account registrations has remained steady withimproved usability and addition of functions<Average loan balance for the maritime industry>

FY23

¥

FY26

1,383.7 billion¥

1,492.0 billion<Number of registrations of AGENT account (cumulative)>(including that of Singapore Branch: ¥260.5 billion)

AGENT

Revisions of Branch Functions and Deployment
 Taking into account declines in local populations and visiting customers, we revised branchfunctions and branch deployment, maintaining touchpoints with customers

Iyo Bank on your palm

46 branches

FY26

66 branches

FY23

HOME

House purchasing planwith a smartphone

Initiatives for BPR
 We reduced total headcount by reducing amount of clerical work through drastic review andshifted generated human resources and time to business strategies that require such resources
FY23[Administrative staff in charge of loans]
Reduction in amount of clerical work
[Bank Headquarters/Group Companies]
Reduction in working hours

300,000

50%
Reduced 15%
Reduced 200
ReducedCompared to March 2020

Compared to December 2017

thousand hours

65%
Reduced 30%
Reduced 300

80%

80% or higher* Percentage of housing loan application using HOME

<Number of new contracts of SAFETY (cumulative)>

Reducedthousand hours

Approx.

FY26

 Released as service to borrow and repay card loans with one
tap at any time Number of new contracts has remained steady thanks to
product renewal

FY26

Compared to March 2018

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126,000<HOME rate>* Micro branches, branches specialized in transactions, and branches locatedin government offices, in-store branches, and branches in branches[Administrative staff in charge of operations]
Reduction in amount of clerical work

Approx.

FY26

 Released as service to apply for housing loans and conduct
contract procedures with a smartphone at any time Spread as infrastructure of housing loans because HOME rate*
was approx. 80%.

<Number of branches that have changed functions
or deployment* (cumulative)>
FY23

FY23

SAFETY

New card loan service
that issues notifications
on insufficient amountFY23

Approx.

7,300

FY26

19,300‐3‐

Business Portfolio That Realizes GrowthTo further enhance earnings power, we will restructure our business portfolio in sales divisions (excluding ships)
Schema: Restructuring of business portfolio toward next 10 years

Direction of each business Aggressive risk taking for supporting local
communities
 Inputting resources to areas with strong
funding needs

Corporate solutions

 Increasing fees and commssions centered onhigh finance, business succession, M&As,
wealth advisory, and leases

Personal loans

 Promoting housing loans focusing on customers
with whom we can expand fundamental
transactions such as payroll transfers
 Expanding consumer loans through measures
such as enhanced promotion and remodeled
products

Assets in custody

New businesses

 Focusing on responses to inheritance-relatedneeds Reducing customer management costs byfully utilizing digital technologies
 Creating and monetizing new businesses,
originating from social issues such as regional
revitalization and green transformation
 Begin full consideration of inorganic
investments (ex. M&As) toward speedy
growthCopyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

… Present status (FY22)

High
高
*

Potential(market potential, competitive advantage)

Corporate loans(excluding forships)… FY32… Size of circles refer to scale ofbusiness (gross profit)

Creation anddevelopment
Newbusiness A

Newbusiness B

Corporate loans
Corporate
solutions

Corporate
solutions

Personal
loans
Assets incustody
Higherefficiency

Personal
loans

More
aggressive

Corporate loans

Moreaggressive

Higherefficiency

Low 低
Low 低

Profitability (return on investment)

高
High
‐4‐

Human Resource Portfolio That Drives Growth
We improve “quality” of human resources in addition to securing “quantity” of human resources who provide value to customers
Schema: Restructuring of human resource portfolio toward next 10 years

Securing “quantity”
 Training and developing human resources
and providing reskilling Relocation from administrative areas,
headquarters middle back areas, and otherareas necessary to improve profitability

External
recruitment andalliances Improving recruiting plans Cooperating with external human resources Securing human resources through M&As

Improving “quality”
Revision of humanresource
development
system Human resource development and reskillingin cooperation with divisions in each areaand field
 Training for younger employees to become
skillful personnel in a shorter period andrevision of OJT system, etc.

Development ofautonomous
human resources Conducting “one-on-one meetings”
 Improving career-related training andmeasures Improving measures and dissemination forsupporting autonomous study

Skill set Defining skills necessary for each area andfield Establishing new internal qualification system Introducing and utilizing talent management
systemCopyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

… Present status (FY23)

High*

Potential(market potential, competitive advantage)

Internal
development andrelocation… FY32… Size of circles refer to scale of humanresources

Corporate

Corporate

consulting area

consulting area*1

Approx. 600
persons

466 persons
Personal

Personal
consulting area*2

305 persons

consulting area

Approx. 340
persons

Approx.

+35 persons

Low低Approx.
+60 persons

New businessarea

Approx.

+130 persons
Consulting and new business areas
Deploying 1,000 persons*1…Business area related to corporate loans, corporate solutions, etc.
*2…Business area related to personal loans, assets in custody, etc.

Low低Profitability (return on investment)

High
‐5‐

INDEX

I. Toward Next 10 Years of Growth
II. Efforts Toward Enhancing Corporate Value
III. Summary of Earnings for Fiscal 2023

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‐6‐Efforts Toward Enhancing Corporate Value
Aiming to raise overall ROE by improving ROE by division and implementing capital policy considering balance of soundness, growth potential, and return policies


Change in ROE by divisions*
Corporate
related*ROE by divisions: managerial accounting, required capital base・Increase corporate loans in consideration of characteristics of areas and profitability
・Expand consulting revenue by showing comprehensive ability of the Group・Increase individual loans by enhancing promotion and combining multiple transactions
Personal related
・Expand revenue on assets in custody through goal-based approach

FY23

5.9%
6.0%

Ship related

・Accumulate quality assets resilient to risk fluctuations
・Continue to secure high profitability, although decline is projected compared to fiscal 2023 dueto effects from weaker yen

9.1%(8.5%)*

Marketinvestment

・Make diversified investment placing emphasis on liquidity
・Continue to secure stable revenue, although decline is projected compared to fiscal 2023 due todecrease in gain on sale of securities

6.6%(4.0%)*

New business・Create second and third revenue pillars, looking ahead 10 years Capital policies
Optimum・Make effective use of capital toward stable long-term return of profit and growthallocation ofcapitalReduction incrossshareholdings

Target level

FY26

ー

6.3%
7.7%

ROE at7% or higher

Financial accounting, net asset
base

8.2%
5.0%
(4.1%)*
ー* Figure in parenthesis of ROE for ship related
excludes the impact of currency fluctuations
Figure in parenthesis of ROE for market investment
excludes related profit/loss

・Reduce cross-shareholdings (listed stock) equivalent to ¥25.0 billion on an acquisition cost basis
by end of fiscal 2026

Improvement in・Achieve total payout ratio of 50% or more by end of fiscal 2026
shareholder
returnCopyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐7‐

Corporate Related
Increase corporate loans (excluding for ships) in consideration of area characteristics and profitability and expand consulting revenue
 Increasing corporate loans
Ehime
Prefecture¥9.0 billion

Capturing demand for capital investment mainly in
manufacturing industry and discovering demand for funds
originating from consulting, while actively providing support
for turnaround<Average corporate loan balance>
Ehime Prefecture

Setouchi region

Kinki and Tokai regions(Billions of yen)Setouchi region(excluding Kinki)¥81.0 billion

Actively increase loans by particularly strategically deploying
personnel to areas with potential increases in demand forfunds and new businessProfit on corporate loans*
FY26

1,160.0

1,055.5+¥1.6 billion

892.5

811.5

(Compared to FY23)

Kinki and Tokai
regions¥104.5 billion* Including structured financeWorking to increase loans considering profitability and credit
risk

797.4

806.4

FY23

FY26

 Expand consulting revenue
Deepening andevolving
existing
businesses Expanding business succession and M&A businesses thatwill solve management needs for both “solution to lack ofsuccessors” and “expansion of business fields”
 Promoting investments through funds and hands-on
support to enhance corporate value of customers

Challenging
new businessfields Promoting LBO, aircraft finance, etc.
 Expanding lease operations by introducing new instruments
such as operating leases New business pillars through new businesses and M&As DX- and decarbonization-related consulting for SMEs
 Venture support through industry-academia-government
collaboration

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<Consulting revenue>
FinanceBusiness succession, M&A

Derivative

Lease

Others

1,092(Millions of yen)

693
1,640

1,600
477

733
671

1,050

Consulting revenue
FY26+¥0.7 billion(Compared to FY23)

1,620

1,920

FY23

FY26

‐8‐

Personal Related
Increase individual loans and expand revenue on assets in custody through sophisticated combination of digital tools and human beings
 Increasing individual loans
Securedloans

Housing loans

Card loans
Unsecuredloans

Purpose specificloans

Increasing share by encouraging HOME throughstrengthening promotion and raising approval rate,
despite impact of decrease in number of housing starts inEhime Prefecture and lower interest rates following
introducing a new variable interest rate product<Average individual loan balance>
Secured loans(Billions of yen)

Encouraging various types of card loans centered on
SAFETY through strengthening promotion efforts, whiledeveloping new customer bases by introducing retry
system and remodeling products

1,089.8

Improvement in operational
efficiency

 Promoting use of AGENT app through marketing
campaigns going forward, to which an investment
trust transaction function has been added
 Establishing effective and efficient retail sales
structure by utilizing digital, hybrid, and real channels

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79.2

Profit on individual loans
FY26
1,132.3+¥0.7 billion(Compared to FY23)

FY23 Expanding revenue on assets in custody

Enhancement of topline

71.2

Encouraging various types of products such as
educational loans and car loans through strengthening
marketing campaigns, while strengthening approaches
for reform loans and debt consolidation loans to existing
borrowers of housing loans

 Expanding customer base of assets in custodytransactions, originating from periodic investments
and diversified investments utilizing the new NISA
system Increase assets in custody balance by implementing
goal-based approach from asset management andasset inheritance activities based on customers’ life
eventsUnsecured loans

FY26<Revenue on assets in custody>
Iyo Bank

Shikoku Alliance Securities(Millions of yen)

1,580

1,973

Revenue on assets in custody
FY26+¥0.4 billion
1,653

1,711

FY23

FY26

(Compared to FY23)‐9‐

Ship Related
Provide support for development of local industries, such as shipbuilding and ocean transport industries, and accumulate quality assets resilient
to risk fluctuations
Ehime Prefecture is major hub of shipbuilding and oceantransport-related businesses
Number of ocean-going vessels owned bydomestic shipowners*1
Ehime Pref.
32.7%(1,199 vessels)
Other than
Ehime Pref.
67.3%

No. 1 in JapanNew vessels constructed in Japan*2
Ehimeheadquarteredshipbuilding yard
groupsOther than
Ehime Pref. (Approx. 30%)
Ehime Pref.
15.7%
84.3%
(1.87 million grosstons)

 Vessel owners in Ehime Prefecture own roughly 33% of the ocean-going vessels
owned by Japanese companies
 Approximately 15% of all ships constructed in Japan are from Ehime prefecture.
The figure rises to roughly 30% if combined with the promotion of ships
constructed in other prefectures by Ehime-headquartered shipbuilding yard
groupsCurrent status surrounding ocean transport

 Strong ocean transport
market conditions
 Weakening yen
 Continuation of low yen
interest rate environment
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

Ship Finance Division Accumulating quality assets resilient to risk fluctuations
 Considering new businesses leading to development of local
communities and maritime industry
 Collecting and disclosing data based on the Poseidon Principles

No. 1 in Japan

Nationwide new shipbuilding completed:
Total number of vessels in Japan: 3,663
11.92 million gross tons(including operators)*1: as of September 2020
*2: Fiscal 2020
(Note) Iyogin Regional Economy Research Center, Inc. (IRC) estimates; the ranking in Japan excludes vessels owned byoperators

Tailwind factors

Aiming for development of Japan’s maritime industry throughcooperation in and outside of Japan

Concerns
 New ship production cost remaining high
 Charter contract periods shortened
 Continuation of high global interest rates
 Tougher requirements about measuresagainst climate change, etc.

Singapore Branch Grasping latest information such as
overseas financial trends andmeasures for the environment
 Matching between overseas
companies and domestic maritime
cluster

Domestic bank branches Supporting development of domestic
maritime cluster Matching between domestic businesses

Coherent investment and loan policy not affected by market conditions
 Emphasis on a well-balanced
portfolio not depending on
specific projects and assets
 Emphasis on long-term
relationships and judgements
about customers’
comprehensive ability in a
multilateral manner
 Utilization of forecast ofcustomers’ future profit or loss
calculated based on ship cost
data collected over a long
period of time

<Average loan balance for the maritime
Industry>
1,492.0(Billions of yen)

1,383.7

FY23

FY26

‐ 10 ‐

Market Investment
Make diversified investment placing emphasis on liquidity, considering total profit and loss leading to stable profit and future profit
Securities performance

Changes in securities portfolio*

Realized profit/loss

Gradually shifted to well-balanced
portfolio from portfolio mainly
consisting of yen-denominatedbonds(Billions of yen)
2,500.0
2,500

Yen-denominated bonds
Domestic and overseas stocks

Also in future, we aim to build roughly ¥2 trillion
securities portfolio depending on situation
Foreign bonds(with forex hedges)
Alternatives, etc.

1,500
1,500.0

1,844.3
64.7
323.2
65.9
264.3

1,820.3
75.2

Approx.
¥2 trillion

0

114.8

142.8

350.4

453.0

408.8

81.7
306.7

1,000
1,000.0500
500.0

1,894.7

386.2

295.6
427.4

1,126.2

FY14①

1,006.2

②

FY17

554.6

③
554.3

FY20

FY23




Decide direction of investment (guidelines) based on
fundamentals, etc. in line with period of the Medium-Term
Management Plan
In latest Medium-Term Management Plan, we have a policy
to increase interest rate risk of bonds including yendenominated bonds and foreign bonds with forex hedge.
We will build a portfolio depending on situation: foreign
bonds (with forex hedge) in case of probability of decreasein overseas interest rates becoming higher; and yendenominated bonds in case of rise in interest rates leading
to determination that investment has become sufficiently
attractive

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Interest and dividend income (excluding gain (loss) on fund cancellation)

Over
30.0

30.8

26.0

25.7

8.7

4.5

4.5
21.0
0
16.0

Total profit or loss
(Total for the
Medium-termManagement Plan)

22.0

21.1

FY15-17

FY18-20

65.7

25.0

23.6

FY21-23

149.7

132.1

FY24-26

Over 100.0

Changes in interest rate risk (10 BPV)*

FY26* As of end of fiscal year. Including money trusts and derivatives for hedging purpose

Medium-term investment plan

Aiming for more than
¥30.0 billion every
fiscal year on realized
profit/loss baseincluding related
profit/loss and morethan ¥100.0 billion in
total on total
profit/loss base for
period of Mediumterm Management
Plan

④

620.0

Related profit/loss, etc. (including derivative profit/loss and gain on fund cancellation)

28.1

Foreign bonds(without forex hedges)

2,063.0
2,000
2,000.0

Obtained stable interest(Average for the
Medium-termand dividend income
though foreign currency Management Plan)procurement costs(Billions of yen)increased
31.0①
FY15-17

Shift to foreign bonds (with forex
hedges) from yen-denominated bonds②
FY18-20

Expansion of foreign bonds (without
forex hedges)③
FY21-23

Shift to foreign bonds (with forex
hedges) from yen-denominated bonds④
FY24-26

Increase in interest rate risk of bonds(yen-denominated bonds + foreign
bonds with forex hedges)

Decisions are based on presence of recession, etc. for overseas
markets. In Japan, more time will be necessary until interest
rates rise ⇒ After considerable time passes, investments will beconsidered

Controlling interest rate risk
looking ahead to rising overseasinterest rates and normalizationof BOJ’s financial policy

Yen-denominated bonds(Billions of yen)
10.0
8.0
6.0
4.0
2.0
0.0

0.3
0.8
4.2

0.3
1.3
4.8

2.0

0.6
2.0
4.3

Foreign bonds(with forex hedges)

Foreign bonds(without forex hedges)

3.0

0.3
1.7

3.1

3.6

3.5

3.3

3.0

1.8
1.8
2.8

3.8
1.7
0.8
1.1

2.5
1.0

FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
* As of end of fiscal year. Modified duration for fiscal 2023: Yen-denominated bonds (after considering hedges) 1.85
years; foreign bonds with forex hedges 4.40 years‐ 11 ‐

New Businesses
Make growth investments from both organic and inorganic viewpoints(Sales and profit)

Growth by organic investments

Fully considering investments and M&As mainly
in adjacent fields with high synergy effects
Growth by inorganic investments

Adjacent
field
Adjacent(M&A)
Adjacent
field
field
(Investment)(Entry)Existing
field
Adjacent
Existing
field
field
(Entry)adjacent
field(Entry)③Investment and M&As
toward speedy growth②New business originatingfrom social issues①Reinforcing existing
businesses and expanding
fieldsCopyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

Growth by organic investments

Entry into adjacent fields(Time)① Reinforcing existing businesses and expanding fields
 Reinforcing (deepening and evolving) existing businesses and considering
expansion of business into adjacent fields, etc.
 Actively utilizing external alliances⇒New finance lease instruments, servicers, guarantee business, etc.
② New businesses originating from social issues
 Enhancing functions within the Group based on
its materiality for solving local and customers’issues Generating revenue opportunities in course ofsolving issues⇒ Solutions to issues × monetization
Solving social issues is
indispensable to strengthening
the Group’s business foundation

Solutions tosocial issues

Developmentof localcommunities

Strengthening
the Group’sbusinessfoundation

Growth by inorganic investments
 Searching within business areas where synergy effects are expected,
irrespective of whether listed or unlisted companies
 Considering investments in local companies with purpose of maintaining
and developing local communities
 Obtaining revenue by risk-taking such as investments in start-ups⇒ Creating second and third revenue pillars, looking ahead 10 years‐ 12 ‐

Optimum Capital Allocation
Make effective use of capital toward stable long-term return of profit and growth, while ensuring sufficient soundness for contributing todevelopment of local economies
 Outlook of equity ratio (CET 1 ratio) (on a fully loaded Basel III basis)
Aiming at improving capital efficiency through proactive investment of capital in growth and returns to shareholders
Profitaccumulation ①Increase in loans(0.6)%

16.04%②Securities investment＋1.9%(0.7)%③Investment ingrowth, etc.

(1.1)%(0.3)%

14.92%④Returns toshareholders, etc.

Increase in share RW(1.1)%

Required CET 1 ratio at
which the Group aims

Approx. 14.0%

Efforts toward capital utilization
①
②

FY23

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Increase in average loan balance by¥400.0 billion→Allocation of capital of approx. ¥30.0
billionInvestment of ¥280.0 billion insecurities→Allocation of capital of approx.
¥40.0 billion③

Growth investment of over ¥10.0④

Returns to shareholders

billionTotal payout ratio 50% or higher

FY23
Basel III fully
loaded**Increases of share RW to be adopted in phases through March 31, 2029 are fully reflected.

FY26‐ 13 ‐

Reduction in Cross-Shareholdings
Reduce cross-shareholdings (listed stock) equivalent to ¥25.0 billion on acquisition cost basis by end of fiscal 2026
 Cumulative reduction in cross-shareholdings (listed stock) in and after fiscal 2015
(Billions of yen)

50.0
40.0

Plan to reduce amountequivalent to approx. 35%
of remaining book value asof March 31, 2024

25.0

30.0
20.0

0.0

6.2

 Policy on holding is set through evaluation matrix of“profitability of investment” and “policy side” for all stocks held

6.1
FY15 to 17

To FY20

To FY23

To FY26[Reference: Changes in reduction and balance of cross-shareholdings]
FY14

Amount of reduction during
period (cumulative
reduction amount)
Cumulative reduction
rate
Acquisition cost(market value)

97.7(284.8)Cross-Shareholdings (listed)
Acquisition cost ¥72.3 billion(Market value ¥381.2 billion)(As of end of fiscal 2023)

 Basic policy Reduce
The Board of Directors verifies the rationality of holding
at least once a year

12.9

10.0

(25.0)(Billions of yen)

Up to FY17

Up to FY20

Up to FY23

Up to FY26

6.1
(6.1)

6.2
(12.4)

12.9(25.3)

25.0(50.3)

6%

13%

26%

52%

91.5
(295.8)85.2(341.7)72.3(381.2)47.3(250.0) Shares which are earmarked for divestment resulting fromverification of rationality of holding are preferentially reduced
 We may consider holding stocks that have an advantages of
profitability of investment from investment purposes[Policy on shareholding from investment purposes]
Condition of shareholding for investment purposes is that “sellingwithout restrictions is possible” to realize shareholding whose
purpose is to receive income solely from fluctuations in stock
value or dividends with respect to stock.

Compared to the end of fiscal 2023: assuming a reduction rateequivalent to the reduction rate of acquisition cost (35%)
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‐ 14 ‐

Shareholder Return Policy
Raise total payout ratio to 50% or higher by fiscal 2026

(50.0)
Dividends (Billions of yen)

Purchase of treasury stock (Billions of yen)

Total payout ratio (%)(30.6)(23.9)(14.0)(15.5)(17.4)(23.4)(46.8)(33.3)

9.3(24.5)(18.7)
3.0

4.0
12.2
9.2

3.8

3.8

3.8

4.4

4.4

4.4

4.4

FY14

FY15

FY16

FY17

FY18

FY19

FY20

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5.1

5.3

FY21

FY22

FY23

FY24

・・・

FY26
‐ 15 ‐

Impact Indicator (Management Indicator) / Economic Impact
Enhance corporate value by maximizing economic impact on the Group
Impact indicator

FY23

Consolidated ROE(Net asset basis）

4.92%

Profit attributable to owners ofparent¥39.4
billion¥Efficiency

Well-balanced cost control isimplemented through increase in top
line and further promotion of BPR

Consolidated core OHR

55.90%

Approx.

GrowthSpeedy growth is pursued toward
expansion of business fields

Growth investment(Organic/Inorganic)―Contents of impact

Economic impact

Profitability

Profitability is ensured throughappropriate capital management, in
addition to enhancement of sales
divisions

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

FY26
Mid

4%

Target level

7% or higher

35.0 billion

55%

10.0 billion¥‐ 16 ‐

Impact Indicator (Management Indicator) / Social Impact
Generate social impact through business activities originating from materiality

Social impact

Materiality/contents of impact

Impact indicator

FY23

FY26

Target level

Climate change
andenvironmental
burdens

Reductions in CO2 emissions of theGroup

The Group’s CO2 emission
reduction rate (Scope 1 and 2)(44.0)%(Compared tofiscal 2013)(50)%(Compared to fiscal
2013)

Achieving carbon
neutral*1

Population
decline andaging population
with lowbirthrate

Increases in assets held by customers

Index of total asset balance per
customer

100.0

108.0

121.0*2

Sustainable
development oflocal economies
and industries

Improvements in customers’
profitability

Index of cash flow per businesscompany

100.0

109.0

131.0*2

Improvements in employees’
engagement

Employee engagement score

70

72

76*2

Customer operating profit per
employee¥4.4 million¥5.6 million¥13.8 million*2

Customer CX indicator*3

6.85

7.10

Maintain 7.10 or higher*2

82 times

100 or more times

Retain 100 or more times
every fiscal year

Raise score

Raise and maintain score

Improvements inhuman capital

Pursuing
integrity

Improvements in employees’
productivity
Improvements in customer
experience value (CX)
Enhancement of transparency of
information disclosure

Number of dialogues withstakeholders
Score of ESG evaluation
organizations－*1. FY30 *2. FY32 *3. The CX indicator is measured in accordance with Nomura Research Institute, Ltd.’s CXMM® (trademark of Nomura Research Institute, Ltd.)
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐ 17 ‐

INDEX

I. Toward Next 10 Years of Growth
II. Efforts Toward Enhancing Corporate Value
III. Summary of Earnings for Fiscal 2023

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐ 18 ‐

Profit and Loss Overview for Fiscal 2023

 Profit attributable to owners of parent marked a record high due to securing a high level of consolidated core business gross profit and anincrease in gain (loss) related to securities
Up ¥9,170 million YoY
A. Consolidated core business gross profit
Holding Company Consolidated(Units: Millions of yen)

A. Consolidated core business gross profit
Interest and dividend income
Fees and commissions

B.

Other operating income(Excluding profit/loss related to bonds including
JGBs, etc.)
Expenses (-)
Personnel expenses
Nonpersonnel expenses
Taxes
Consolidated core business net income

C. Credit costs (-) ①+②-③-④
Provision of reserve for general loan losses ①
Amortization of non-performing loans ②
Reversal of allowance for loan losses ③
Recoveries of written off claims ④

D. 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

E.

Profit attributable to owners of parent

FY23

YoY

98,72982,945
10,576+9,170+7,610
+892

5,208

+669

55,19629,96922,124
3,101
43,533
2,785(3,446)
6,606－
374
14,952
9,575
5,376
2,879
58,579(510)
58,06939,43839,464+2,529+641+1,767+119+6,642+5,383(3,446)+5,532(656)(2,642)+14,989+6,690+8,299(84)+16,164+1,407+17,572+11,112+11,565

Increase/
Decrease+10.2%✓ Interest and dividend income increased, mainly due to an increase in gain on loan
management as a result of boosting loan balance and an increase in gain on securities
management as a result of improvement of gain (loss) on fund cancellation.
✓ Fees and commissions increased due to increases in revenue on corporate consulting andrevenue on assets in custody by the Group as a whole.

FY2289,55975,3359,684+18.0%+38.1%+39.2%+41.5%

52,667
29,32820,3572,982
36,891(2,598)
－
1,074
656
3,016
(37)
2,885
(2,923)
2,963
42,415(1,917)40,49728,32627,899Consolidated business net income
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

192,758
56,555+19,804+16,778+11.5%+42.2%

172,954
39,777

C. Credit costs (-)

Up ¥5,383 million YoY

D. Gain (loss) related to securities

Up ¥14,989 million YoY

E. Profit attributable toowners of parent

Up ¥11,565 million YoY✓ Reversal of provision of reserve for general loan losses decreased as a result of an increasein the reserve ratio and other factors.
✓ Amortization of non-performing loans increased as a result of increases in bankruptcies,etc.

✓ Gain (loss) related to bonds including JGBs, etc. increased due to the recording of a gain on
sales of foreign bonds, etc. by capturing the market trend.
✓ Gain (loss) related to stock, etc. increased due to the increased gain on sales of crossshareholdings and decreased loss on devaluation of equity securities.

Reference: breakdown ofcredit costs

Credit costs (-) ① + ② - ③

FY23

FY22

YoY

2,785

(2,598)+5,383(3,446)(4,689)+1,243② Amortization of nonperforming loans

6,606

5,107

+1,499 * For fiscal 2022, the total amount of(of which, provision of reserve for
specific loan losses)

5,638

4,032

+1,606 losses and provision of reserve for

374

3,016

(2,642) reversal of allowance for loan losses.

① Provision of reserve for generalloan losses‘

Ordinary revenue

Up ¥2,529 million YoY✓ Nonpersonnel expenses such as depreciation and administrative outsourcing expenses
increased due to an increase in strategic investments. Also, personnel expenses increased
due to the raised wage base, etc.

4,539
+4.8%

B. Expenses (-)③ Recoveries of written off claims

provision of reserve for general loan
specific loan losses was recorded as‐ 19 ‐

Profit and Loss of Major Group Companies for Fiscal 2023 [Group Companies]
 Iyo Bank Nonconsolidated Other Major Group Companies

Mainly due to increases in core business gross profit and gain (loss) related to securities,
net income increased, posting a record high.
Iyo Bank Nonconsolidated(Units: Millions of yen)

FY23

YoY

Increase/
Decrease+10.4%+8,761+7,699
+169

3,466

+893

Recoveries of written off claims ④

52,72024,987
24,705
3,028
40,146
2,296(3,518)
6,188
－
373

+2,410(135)+2,417+130+6,351+5,118(3,518)+5,383(612)(2,641)Gain (loss) related to securities

15,052+15,548(496)

Gain (loss) related to bonds including JGBs, etc.

9,575
5,477
3,238
56,141(505)
55,63537,867+6,690+8,859+66+16,848+1,263+18,111+11,542+42.9%+43.8%

2,885(3,382)
3,172
39,293(1,768)37,524
26,325

172,917
53,241+19,295+16,560+12.6%+45.1%

153,622
36,681

Interest and dividend income
Fees and commissions
Other operating income(Excluding profit/loss related to bonds including
JGBs, etc.)
Expenses (-)
Personnel expenses
Nonpersonnel expenses
Taxes
Core business net income
Credit costs (-) ①+②-③-④
Provision of reserve for general loan losses ①
Amortization of non-performing loans ②
Reversal of allowance for loan losses ③

Gain (loss) related to stock, etc.
Other temporary gain (loss)
Ordinary income
Extraordinary income (loss)
Income before income taxes
Net income
Ordinary revenue
Business net income
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

84,10675,067
6,465
2,573

+4.8%

+18.8%

50,31025,122
22,2882,898
33,795(2,822)
－
805
612
3,014

(Units: Millions of yen)

FY23

FY22

92,867
82,766
6,634Core business gross profit

 Iyogin Leasing
Core businessgross profit
Expenses (-)
Core business net
incomeOther profit (loss) Shikoku Alliance Securities (Units: Millions of yen)
FY23

YoY

1,640

+218

839

+82

800

+136

0

(96)

Core businessgross profit
Expenses (-)
Core business net
incomeOther profit (loss)

Ordinary income

801

+40

Net income

555
17,025

Ordinary revenue

 Iyogin Credit Guarantee
FY23Core businessgross profit
Expenses (-)
Core business net
incomeOther profit (loss)
Ordinary income
Net income
Ordinary revenue

YoY

1,580

+259

1,553

(61)

27

+319

3

+3

Ordinary income

31

+323

+49

Net income

18

+315

+609

Ordinary revenue

1,835

+230

(Units: Millions of yen)

 Iyogin Computer Service
FY23

YoY

(Units: Millions of yen)

YoY

(531)

(216)

Core businessgross profit
Expenses (-)
Core business net
incomeOther profit (loss)

(15)

(15)

1,285

(241)

Ordinary income

234

+10

856

(151)

Net income

165

+17

2,113

(88)

Ordinary revenue

2,925

+424

2,112

+34

296

+58

1,816

(24)

1,506

+94

1,256

+70

249

+24

*The figures for profits and losses of each company are stated before inter-group elimination.
‐ 20 ‐

Factors in Increase / Decrease in Core Business Gross Profit for Fiscal 2023

 Core business gross profit still remained at a high level, increased year on year due to steady increases in both interest and dividend income andnon-interest and dividend income
Year-on-year (FY23 – FY22)(Units: Billions of yen)
(Note) Differences in yield of domestic currency utilize
yield differences with domestic deposits, etc.
Differences in yield of foreign currency utilize yield
differences with foreign currency funding costs

Gain on loan
management(¥56.1 billion)

Interest and dividend income(¥82.9 billion)+4.25

Gain on securities
management(¥25.0 billion)

+2.98

+9.17

+1.09
Of which, foreign currency(¥15.3 billion)

+3.16

+7.61
Core business gross profit(¥98.7 billion)

Of which, domestic currency(¥40.7 billion)

Of which, domestic currency(¥15.7 billion)+3.81
Of which, foreign currency(¥9.3 billion)(0.83)
Other (¥1.7 billion)

Volume factors +1.59 (Average loan balance up ¥175.8 billion)
Yield difference factors (0.50) (Yield difference down 0.01%)
Volume factors +2.39 (Average loan balance up ¥159.7 billion)
Yield difference factors +0.77 (Yield difference up 0.08%)
Volume factors (0.39) (Average securities balance down ¥26.5 billion)
Yield difference factors +0.01
Gain (loss) on fund cancellation factors +4.19 (Recorded gain on
cancellation of investment trusts, etc.)
Volume factors +2.75 (Average securities balance up ¥141.9 billion)
Yield difference factors (3.58) (Yield difference down 0.66%)+0.38
Fees and commissions(¥10.5 billion)

+0.89
Other
(¥5.2 billion)+0.67
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

… Revenue on assets in custody +0.44, international loan-related commissions +0.47, etc.

… (2.85) from gain (loss) on foreign exchange transactions, +3.75 from gain (loss) on derivatives, (0.21) fromrevenue on bond trading, etc.
‐ 21 ‐

Loans, Deposits, and Assets in Custody for Fiscal 2023
 Deposits, etc.

Deposits, etc. were up 1.8% year-on-year

Balance of deposits, etc. by region
Region(Units: Billions of yen)

FY22

FY23

Balance of loans by region
RegionIncrease/
Decrease

YoY

Loans were up 6.4% year-on-year Loans(Units: Billions of yen)

FY22

FY23

Increase/
Decrease

YoY

Within Ehime Prefecture

5,283.5

5,334.6

+51.1

+1.0%

Within Ehime Prefecture

2,659.6

2,849.5+189.9+7.1%

Shikoku (excluding Ehime)

284.9

295.8

+10.9

+3.8%

Shikoku (excluding Ehime)

353.7

367.9

+14.2

+4.0%

Kyushu

193.6

202.4

+8.8

+4.5%

Kyushu

348.5

371.2

+22.7

+6.5%

Chugoku

284.0

278.7

(5.3)

(1.9)%

Chugoku

494.7

516.4

+21.7

+4.4%

Kinki

189.0

189.6

+0.6

+0.3%

Kinki

404.3

408.6

+4.3

+1.1%

Tokyo and Nagoya

480.6

478.5

(2.1)

(0.4)%

Tokyo and Nagoya

703.7

755.0

+51.3

+7.3%

Singapore

94.0

158.1

+64.1

+68.2%

Financial Market Business Office

135.0

141.7

+6.7

+5.0%

Offshore, etc.

13.3

11.0

(2.3)

(17.3)%

5,099.9

5,410.8+310.9+6.1%

6,823.2

6,949.0+125.8

+1.8%

226.0

256.6

+30.6

+13.5%

5,326.0

5,667.4+341.4+6.4%

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

FY22

FY23

Increase/
Decrease

YoY

Assets in custody

647.8

730.6

+82.8

+12.7%

Iyo Bank

372.7

408.7

+36.0

+9.6%

Shikoku Alliance Securities

275.0

321.8

+46.8

+17.0%

Sales of assets in custody

144.1

162.2

+18.1

+12.6%

Iyo Bank

64.1

75.8

+11.7

+18.3%

Shikoku Alliance Securities

80.0

86.4

+6.4

+8.0%

* Excludes foreign currency deposits
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

Total

Share within Ehime Prefecture as of March 31, 2024
(excluding Japan Post, agricultural cooperatives, etc.)
Deposits Assets in Custody

Balance of assets in custody was up 12.7% year-onyear

Singapore

52.3%

Loans

Total

Total (domestic branches)

0%

7.2%

35.2%

10%
Iyo Bank

20%

21.5%

30%

40%

Regional banks other than the Iyo Bank

50%

7.5%

23.0%

12.2%

60%

City banks / Trust banks

10.1%

24.8%

70%

80%

Second regional banks

6.4%

90%

100%

Credit unions‐ 22 ‐

Credit Costs and Disclosed Non-performing Loans for Fiscal 2023
 Credit Costs
Credit costs by factor(Units: Billions of yen)

FY20

FY21

FY22

FY23

YoY

Credit costs total

13.3

4.4

(2.6)

2.7

+5.3

Provision of reserve for general loan
losses

9.5

(0.7)

(4.6)

(3.4)

+1.2

Amortization of non-performing loans

4.4

5.7

5.1

6.6

+1.5

Bankruptcies

0.5

1.4

0.0

0.9

+0.9

Downgrades, etc.

6.2

6.5

8.4

8.1

(0.3)

Upgrades and collections

(2.8)

(2.8)

(3.8)

(2.8)

+1.0

Other Group companies

0.5

0.6

0.3

0.4

+0.1

Recoveries of written off claims (-)

0.6

0.5

3.0

0.3

(2.7)

[Reference] Credit management
expense ratio (Nonconsolidated*)

0.26%

0.08%

(0.05)%

0.04%+0.10P

Credit costs were up ¥5.3 billion year on year
mainly due to a decrease in reversal of provision ofreserve for general loan losses as a result of anincrease in reserve ratio and an increase inamortization of non-performing loans as a result of
increases in bankruptcies, etc.
*For fiscal 2022, since the total amount of provisionof reserve for general loan losses and provision ofreserve for specific loan losses is negative, reversalof allowance for loan losses is recorded in thefinancial statements. However, it is not shown in
the table on the left for the purpose of comparative
analysis with the past results.

(*) Credit management expense ratio = Credit costs (Bank Nonconsolidated) / Average loan balance (Bank Nonconsolidated) Ratio of Disclosed Non-Performing Loans
Amounts and ratios of disclosed non-performing loans under the Financial Reconstruction Act
FY20

FY21

FY22

FY23

(Units: Billions of yen)

YoY

Loans to bankrupt or effectively
bankrupt borrowers

3.8

1.9

3.3

3.8

+0.5

Doubtful assets

54.2

63.3

69.8

73.1

+3.2

Credit subject to specific risk
management

16.8

23.7

25.0

20.6

(4.4)

Total disclosed non-performing loans

74.8

89.1

98.2

97.6

(0.6)

Ratio of disclosed non-performing loans

1.42%

1.66%

1.75%

1.63%

(0.12)P

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

As bankruptcies and downgrades, etc. continued toremain at a low level despite credit costs increased
year on year, ratio of non-performing loancontinued at a low level of 1.63%.

‐ 23 ‐

Evaluation Gain (Loss) on Securities and Equity Ratio for Fiscal 2023
 Maintained a top level among regional banks by conducting operations
responding to the market trend

Evaluation
Gain
loss ongain/ onsecurities
securities(Billions of yen)
400.0

Nikkei average

16.05%

 Equity Ratio¥366.9 billion

 Evaluation Gain on Securities

 Secured high soundness, sufficiently exceeding required equity ratio

Tier 1 ratio for common stock, etc.

(Yen)

Gross equity ratio

45,00016.05

40,36940,000350.029,178250.0
21,454

27,821

28,041

366.9

332.4
237.8

14.31

14.38

15.01
14.65
14.32

25,00018,917248.4

30,00021,205

150.0

283.3

250.0

299.9

16.04

20,00015,000

100.0

14.31

14.33

FY17

FY18

14.73

14.58

FY19

FY20

15.00
14.28

10,000

50.0
0.0

14.85

35,000

300.0

200.0

(%)

5,000

FY17

FY18

FY19

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

FY20

FY21

FY22

FY23

0

FY21

FY22

FY23

‐ 24 ‐

Profit / Loss Forecasts for Fiscal 2024
 Mainly due to an increase in interest and dividend income, consolidated core business gross profit is projected to be ¥102.0 billion, an increase of ¥3.3 billion
year on year A high level of profits will continue to be secured, although profit attributable to owners of parent is projected to decrease by ¥7.4 billion year on year to¥32.0 billion due to factors such as a decrease in gain (loss) related to securities, while consolidated core business gross profit increases
Factors Contributing to Increase / Decreasein Consolidated Core Business Gross Profit (FY24 - FY23)(Units: Billions of yen)
FY23

[Holding Company Consolidated]
Consolidated core business grossprofitOf which, interest and dividend
incomeFY24First halfFirst half

YoY

YoY

50.7

98.7

51.5

+0.8

1,02.0

+3.3

41.4

82.9

42.5

+1.1

85.5

+2.6

9.3

15.7

9.0

(0.3)

16.5

+0.8

Expenses (-)

27.2

55.1

29.5

+2.3

58.0

+2.9

Consolidated core business net income

23.5

43.5

22.0

(1.5)

44.0

+0.5

Credit costs (-)

1.5

2.7

2.0

+0.5

5.5

+2.8

Gain (loss) related to securities

13.5

14.9

0.5

(13.0)

4.5(10.4)

Ordinary income

37.4

58.5

22.5

(14.9)

46.0(12.5)

Profit attributable to owners of parent

24.7

39.4

15.5

(9.2)

32.0

(7.4)

Of which, non-interest and dividend
Income〔参考：銀行単体(Units: Billions
of[Reference:
yen)〕
Bank Nonconsolidated]

FY23

FY24

First halfFirst half

YoY

YoY

Core business gross profit

48.0

92.8

48.5

+0.5

95.5

+2.7

Expenses (-)

26.0

52.7

28.0

+2.0

55.0

+2.3

Core business net income

22.0

40.1

20.5

(1.5)

40.5

+0.4

Ordinary income

36.2

56.1

21.0

(15.2)

43.5(12.6)Net income

24.0

37.8

15.0

(9.0)

30.5

(7.3)

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

(Note) Differences in yield of domestic currency utilize
yield differences with domestic deposits, etc.
Differences in yield of foreign currency utilize yield
differences with foreign currency funding costs(Units: Billions of yen)

Gain on loan
management(¥57.5 billion)+1.3

Core businessgross profit(¥102.0 billion)

Interest anddividend income(¥85.5 billion)

Gain on securities
management(¥27.0 billion)

+2.6

+2.0

Volume factors +1.6
(Average loan balance up ¥140.0
billion)Yield difference factors (0.3)(Yield difference down 0.01%)
Volume factors +4.2
(Average loan balance up ¥430.0
billion)Yield difference factors (1.3)
Gain on fund cancellation factors (0.9)

+3.3

Other
(¥1.0 billion)
Fees andcommissions(¥10.5 billion)

+0.0

(0.7)

… Decrease in special interest granted by the
Bank of Japan, etc.

… Increase in loan related commissions, decrease in international loan
related commissions, etc.

Other(¥6.0 billion)+0.8… Increase in derivatives revenue, etc.

‐ 25 ‐

Responses in Rising Interest Rate Environment

We have adopted a policy to mitigate the yen interest rate risk, preparing for a substantial rise in interest rates. A rise in yen interest rates
has positive impact on the Company
Interest Rate Sensitivity and Interest Rate Maturity Ladder of Domestic
Effect on B/S and P/L from rising interest rates
Currency Assets Under Management

 The majority of domestic currency loans are variable loans with the interest rate maturity
within one year, etc.
 A mitigating policy for interest rate risk continues for yen-denominated bonds, preparing for a(Units: Billions of yen)further rise in interest rates
Variable Over one year, Over three
Over seven
Total(Within one within three years, within
years
years
seven years
year)
2,445.5
750.7
721.6
682.4
4,600.1
Domestic Balance
(53%)
(16%)
(16%)
(15%)
(100%)
currency Interest rateloans
sensitivity
(0.8)
(1.7)
(3.1)
(7.8)
(13.3)(10bpv)
68.6
208.4
158.8
116.3
552.1
YenBalance
(12%)
(38%)
(29%)
(21%)
(100%)
denominInterest
rate
ated
sensitivity
(0.1)
(0.4)
(0.7)
(1.0)
(2.2)
bonds
(10bpv)(Hundreds ofMillions of Yen)

25,000

Domestic
邦貨貸出金
currency loans

Yen-denominated
円貨債券
bonds

15,00010,0005,000
Variable(Within one year)
変動（1年以内）Over one year, within

three years
1年超～3年以内

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

Effect on interest income on loans

Effect on evaluation gain (loss) on
securities*

Up approx. ¥1.6 billion a year

Down ¥1.0 billion*After considering hedge effects of the yen swap

Status of Interest Rate Risk in the Banking Book (IRRBB) Yen interest rate risk is zero due to the mitigating policy taken for yen interest rates, and a
portfolio preparing for rising interest rates continues to be established.
(Units: Billions of yen)

Employed scenario

20,0000 If the yield curve moves up in parallel by 10 bp, interest income on loans is expected to increase,
while expansion of evaluation loss on securities is limited

Over three years,

within seven years
3年超～7年以内

FY19

FY20

FY21

FY22

FY23

UpwardparallelUpwardparallelUpwardparallelDownward
parallelUpwardparallelInterest rate risk

73.6

76.3

42.0

40.3

85.3

Yen interest rate risk

0.0

0.0

0.0

40.3

0.0

Foreign currencyinterest rate risk

73.6

76.3

42.0

0.0

85.3

Tier1

613.4

687.4

666.8

699.2

778.3

Outlier ratio

12.0%

11.1%

6.3%

5.7%

10.9%

7年超

Over seven years‐ 26 ‐

Appendix Strategy of Fiscal 2024 Medium-Term
Management PlanFramework of Strategy of Fiscal 2024 Medium-Term Management Plan
Enhance “earning power ” byimplementing sustainability
management

By formulating strategies that include “growth,” “adaptation,” “resilience,” and“upgrade” as keywords and implementing sustainability management to further
strengthen the business foundation and management foundation, we will enhance“earnings power” of the Group and sustainability of local communities

Sustainable developmentof local economies andindustries“Grow” with stakeholders through sustainable development of local economies and industries

Growth strategy
Climate change andenvironmental
burdens
Population decline
andaging population
with low birthrate“Adapt” to local issues that significantly affect
the Group and its stakeholders such as climatechange and population decline

Adaptation strategy

Create “resilient” human resources andorganization by improving human capital andconducting business activities with integrity

Resilience strategy“Upgrade” infrastructure, mechanisms, etc. to higher levels by further promoting BPR, improving faceto-face and non-face-to-face channels, and constructing a next-generation core system

Improvement in
human capital
Pursuit of integrity

Initiation of supporting
business activities originatingfrom materiality

Upgrade strategy
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐ 28 ‐

—Growth Strategy— Initiatives in Corporate Related Divisions
Conduct Group-wide consulting business responding to increasingly sophisticated and diversified needs of customers
Increasingly Sophisticated and Diversifying Management Issues
Humanresource
development

Service andproduct
development

Sales channel
expansion

IT utilization

Environmental
measures

Finance revenue(Millions of yen)

Businessdevelopment

Brand
development

60.0

42.9

 Boost lease receivable balance by sharing
information between bank and lease companies
and responding to diverse funding needs ofcustomers

FY23

FY26

Revenue related to businesssuccession and M&As
(Millions of yen)

Business
succession(Billions of yen)

 Expand revenue by promoting new initiatives
such as LBO and aircraft finance, in addition tosyndicated loans and private placement bonds

FY23

Technologicalresearch

Balance of lease receivables

1,920

1,620

Human
resource
recruitment

FY26

Number of staffing referrals(Cases)

1,050

121

140

671

FY23

FY26

 Expand revenue by responding to reorganization, transitions to aholding company, and M&A support due to a lack of successors
with one-stop support
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

We will provide diverse
consulting services as anintegrated group

FY23

FY26

 Further increase number of staffing referrals through ourestablished structure, which can meet needs of both job seekers
and employers‐ 29 ‐

—Growth Strategy— Initiatives in Personal Related Divisions
Provide optimum consulting that meets needs by deeply understanding customers’ wishes
Customer Needs

Enter university

Balance of Group’s assets incustody(Billions of yen)

Start a job

Card loan

Get married

868.5

Have children

Insurance Asset management Housing loan

Number of housing loans executed
per year(Cases)730.6

 Boost balance of assets in custody byimplementing responses to new NISA,
activities centered around life plans and life
events, and customer-oriented business
operations
FY23

Car loan

FY26

2,050

FY23

Cumulative number of customersof level premium insurance(Number ofcustomers)

34,761

 Increase number of executed housing loans
by improving efficiency of application andscreening with HOME and enhancing
customer response capability

1,495

FY26

Number of card loan contracts per
year

40,5008,100(Cases)
4,804

FY23

FY26

 Increase number of customers of level premium insurance byincreasing walk-in customers to insurance plazas throughenhanced digital promotion
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

We will provide optimum
consulting that meets customer
needs

FY23

FY26

 Increase number of card loan contracts through measures suchas enhanced promotion and remodeled products‐ 30 ‐

—Growth Strategy— Initiatives in Ship Related Divisions
Provide full support for optimum investments toward growth and development of maritime related business operators

Enhancing capability by sharing information and strengthening
alliances with wide variety of maritime related business operators
 Grasping latest trends by sharing information with wide variety of oceantransportation operators in and outside of Japan

Improving support system through effective utilization of resources Measures of optimizing exposure for responding to optimum business
investments of customers

 Collecting information about new technologies (new fuel vessels, environmental

 Improving supportive measures by enhancing cooperation between headquarters

equipment, DX, etc.) and appropriately sharing, analyzing, and utilizing suchand bank branches and strengthening customer response capability of bankcollected information

branches in and outside of Japan

 Providing high-quality information to customers

 Developing ship finance related human resources with knowledge about ship
finance with high level of language skills

Shipbuilding
yards

Ship owners

Trading companies
Insurance companies

Ship equipment
manufacturers

Contributing to the maritime industry and generating monetization
opportunities by exploring new business fields
 Considering new businesses contributing to development of local communities
and industries

Iyogin Holdings

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

 Considering alliances with external companies
 Developing plans toward commercialization‐ 31 ‐

—Growth Strategy— Initiatives in Market Investment Divisions
Make diversified investment placing emphasis on liquidity, considering total profit and loss leading to stable profit and future profit
Market-oriented loans (Financial Market Business Office)Status of foreign currency investment and procurement

 Expanding stable revenue by taking up new projects in leveled approach Accumulating average loan balance in a stable manner by taking up new projects withconcentrations in sustainable projects and overseas projects
 Aiming to expand revenue of entire portfolio by improving loan margins and selecting projects
considering enhancement of non-interest revenue<Market-oriented average loan balance>(Billions of yen)<Market-oriented loan portfolio (by regions and industries)>
3.7%
8.5%

170.0

 Aiming for foreign currency procurement structure that pursues stability andprofitability (cost optimization) in consideration of characteristics of assets held(liquidity, currency changes, early redemption, etc.)
 Continuing efforts for reducing reliance on market procurement throughincreasing deposits, etc.
 Constructing a maturity ladder through long-term procurement considering time
diversification and enhancement of stability
 Appropriately responding to various regulations toward sustainable procurementof foreign currencies <Loans + Market investment (securities) >Mainlyassets with high liquidity
流動性の高い資産が中心
貸出金等
Loans,
etc.

運用
Investment

30.6%

Mainlyassets with low liquidity
流動性の低い資産が中心

14.9%

140.7

有価証券
Securities

69.4%

49.0%

Japan
日本

North
北米 Europe
欧州
America

預金等 etc.
Deposits,

調達
Procurement

23.9%

アジア・オセアニア
Asia and Oceania

その他
Other

28.2%

Short-term
短期調達
procurement

長期調達
Long-term
procurement
30.1%

Repoレポ調達
procurement

15.5%
26.2%
Choose foreign資産構成に応じた外貨調達手段を選択
currency procurement methods in line with asset composition

0%

10%

20%

30%

40%

50%

60%

70%

＜Loans, etc.＞

80%

90%

100%

Short-term
procurement is conducted for substantial short-term loans
実質的な短期貸出に対しては、短期調達を実施

6.5%

6.3%

Investment
運用

Loans,
etc.
貸出金等

Loans with multi-currency terms

7.5%

Liquidity gap* is
Stability gap* is positive
negative (excessive(excessive investment)
procurement)

47.6%

10.2%

調達
Procurement

21.9%

預金等
Deposits,
etc.
40.6%

Long-term
procurement
長期調達
43.4%

Short-term
短期調達
procurement
16.0%

Cash flow risk is guaranteed with commitment lines

FY23

FY26

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

電気･ガス
Electricity
and gas

金融
Finance

製造
Manufacturing

Transportation
運輸

各種サービス
Variousservices
その他
Other

0%

20%
40%
60%
80%
100%
*Stability gap: Loans, etc. - (Deposits, etc. + Long-term procurement),*Liquidity gap: Loans, etc. - (Deposits, etc. + Long-term procurement + Commitment line)120%‐ 32 ‐

—Adaptation Strategy— Initiatives in Corporate Related Divisions
Promote creation of sustainable towns proactively by providing solutions that contribute to decarbonization, regional revitalization, and digitization
 Support of decarbonization of local communities and customers

 Accelerating initiatives with partner companies toward visualization and reductions in GHG
emissions of local communities and customers, while promptly capturing changes indecarbonization trends in and outside of Japan
Motivation for initiatives

Enhancingengagement

Measurement of amount ofemissions
Development of reduction
targets and plans
Implementation of
decarbonization investments<Partner companies>
Visualization of GHG
emissions, consulting on
reductions, etc.

Support from bothfinancial and nonfinancial aspects

 Actual results of sustainable finance Implemented transactions of ¥446.2 billion (including ¥281.6 billion in environmental area)
as of fiscal 2023 versus cumulative target of ¥1.4 trillion (including ¥700.0 billion inenvironmental area) by fiscal 2030
Sustainable finance

1,400.0(Of which, the environmental area)
Transaction amount in FY23: ¥227.3 billion(including ¥156.5 billion in environmental area)

700.0

446.2
92.6
FY21

218.9
60.9

281.6

125.1

FY22

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

FY23

・・・

FY30

 Support of regional revitalization centered around tourism industry

 Strengthening support toward “higher value added” tourism industry such as increasing
attractiveness of regional tourist sites and developing environment receptive to tourists,since the tourism industry is positioned as “pillar of growth strategy and a trump card ofregional revitalization”
Supporting higher value-added[Case 1] Ozu City, Ehime Prefecture
tourism industry throughParticipated in creation of tourism
external cooperation
town by utilizing historic resources incooperation with local stakeholders,The
which received high internationalGroupacclaim for sustainable tourism town
Localcreation
Tourism
governbusinesses[Case 2] Imabari City, Ehime PrefecturementsTourism and(Nibukawa hot springs)
town creation
Conducted activities such as
improvements in facilities, workshops
Local
in cooperation with Group companies,
stakeDMO
and traffic demonstration, supporting
holders
development and realization of granddesign of region

 Support of DX of local companies
 Supporting development of DX plans for local companies responding to their respective issues
mainly through Iyogin Digital Solutions established in April 2023
 Conducting consulting mainly for improvements in efficiency of back-office divisions
Identification ofdetails of
business andissuesDevelopment of
DX plans

Follow-up fortaking root

Supportintroduction oftools<DX consulting related revenue>
74 million yen
58 million yen

FY23

FY26

‐ 33 ‐

—Adaptation Strategy— Initiatives in Personal Related Divisions
Contribute to enhancing financial literacy for asset-building for customers toward realization of local financial inclusion<Number of recipients of activities contributing to enhancementof financial literacy (cumulative)*> Enhancing local financial literacy and sustainability of retail businesses
Financialeducation

Simulation tool that allows customers to chart various future plans Enables the sharing of dreams that customers want to achieve andthe visualization of changes in balance and assets to create life plansfor each customer* Total number of seminar participants and number of those who
received a proposal with LIFE PALETTE

25,00016,200Seminars
8,000

Face-to-faceconsulting

Life plan simulation

Variouscontents

FY24

FY25

FY26

<Number of NISA accounts in the Group (cumulative)>
65,000accounts
51,429accounts

 In today’s society, where there is overabundance of information, we will promote dissemination of wide variety offinancial-related information enabling customers to make better decisions
 We, as a financial institution rooted in the local community, will focus on activities contributing to enhancing local
financial literacy through seminars, financial education, various contents, etc.
 Furthermore, we will provide high value-added consulting utilizing life plan simulations toward realization of life plans foreach customer
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

FY23

FY26

‐ 34 ‐

—Adaptation Strategy— Initiatives in Ship Related Divisions
Provide full support for customers to respond to any changes by appropriately capturing changes in business environments in maritime-related industry
 Optimum support by accurately grasping trends related to GHG reductions required for the ocean transport industry
Ocean transport industry’s issues × Climatechange and environmental burdens
 IMO* has set stricter target to achieve netzero total GHG emissions by around 2050
including those in fuel manufacturing
process
2008
Basic year ofemissions2030 Target
30% reduction in
total emissions

2040 Target
80% reduction in
total emissions

Around 2050
GHG net-zero* International Maritime Organization

Issues to be addressed by the Group Collection of information about
environmental regulations required forocean transport industry
 Appropriate decision about credit bydeepening understanding of new fuels andtechnologies Raising awareness among business
partners about GHG reductions
 Support of business partners for GHG
reduction measures

Specific measures
 Implementing finance for new fuel vessels
 Considering ESG-related finance Considering measures that utilize collected
data in accordance with the Poseidon
Principles
 Improving business matching such as forenergy-saving devices

 Securing maritime-related personnel and providing management support by DX
Ocean transport industry’s issues × Population
decline and aging population with low birthrate

Issues to be addressed by the GroupSpecific measures

 Shortage of workers due to decline in rural
population and aging population
 Shortage of DX human resources andknowhow Increase in productivity through costreduction measures and labor-shortage
measuresShipbuilding related
 Higher ship management level to berequired and shortage of maritime
engineers engaging in ship management

 DX support for ship owners, shipbuilding
yards, and ship equipment manufacturers
 Support for shipbuilding yards, etc. toincrease productivity
 Support to address shortage of workers
associated with aging population andpopulation decline
 Support to address higher level of ship
management work to be required Improving business matching such as for
system for improvement o f management
efficiency
 Further promoting DX support measures Considering support for ship managementwork Cooperating with institutions for training
maritime engineers Cooperating with governmental agencies

Ship owner related

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐ 35 ‐

—Adaptation Strategy— Roadmap to Decarbonization
Achieving 50% reduction target of Scopes 1 and 2 by fiscal 2026, earlier than initial target of
fiscal 2030, aiming at net zero in fiscal 2030

Up to today

Scopes 1
and 2
Emission
reductions
from ouroperations• Reducing
branches• Introducing
energy-saving
equipment• Introducing EV
vehicles, etc.

Achieved 44%
reduction*(compared to fiscal
2013)* Actual results for FY23

Scope 3
(CAT 15)

Emission
reductions
throughinvestments
and loans

FY24

Medium-Term
Management Plan
begins in Fiscal 2024

FY25

FY26

Scopes I and 2
50% reduction isachieved

FY29

FY30

New Head Officecompletes

Scopes 1 and 2
Net zero is achieved

Introducing electric power derived from renewable energy (gradually switched over mainly at locations with higher emissions)Introducing energy-saving equipment and solar panels when rebuilding or renovating branches, introducing (expanding ZEB branches),
reviewing number of commercial vehicles, and developing in-house renewable energy sources

Considering utilization of the J-Credit Scheme and support for
creation through utilization of forests, etc.

Offsetting emissions by utilizing the J-Credit Scheme,etc.

Calculating and disclosing CAT 15, improving accuracy of calculated data (shifting from top-down to bottom-up approach)• Estimating emissionsof all sectors• Deciding priority
sectors• Analyzing transition
risk

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

Expanding engagement by improving scenario analysis

Setting reduction targets
for priority sectors

Supporting priority sectors (to be expanded in phases) for decarbonization management
toward achieving reduction targets and promoting sustainable finance‐ 36 ‐

—Resilience Strategy— Initiative in Human Resource Divisions
The Group positions human resources as one source of competitive advantages, developing human resources and arranging internal environment to realize
five elements of Well-Being for all employees
Human capital management
HR development
Development of autonomous
human resources

Human resource development forsales consulting

 Enhancing employee engagement and earnings  Establishing infrastructure toward a teampower
consisting of 1,000 staff
 Reviewing HR training and development<Expansion of sales consulting personnel (illustrated)>system3,000 persons + α
Approx. 3,000 Strengthening support for autonomous
persons
career development
 Activating communication in organization

Upgrading specialized skills
 Market Ship finance Technologies
 Planning (digital business)

466

771
persons

1,000
persons

DE&I

 Arranging an environment with job
satisfaction
 Continuing initiatives for work-style reforms

 Arranging an environment where
employees can actively work regardlessof age and gender Changing unconscious bias (including
measures for LGBTQ+) Improving training program of female
candidates for managerial positions

 Improving incentive system of employee
stock ownership Considering introducing a stock-based
remuneration system and performancebased compensation system

Health management

60

2,200

 Securing and utilizing optimum humanresources Expanding in-house recruitment system,
deploying motivated employees, andrealizing right person for right role
 Strengthening mid-career recruitment

600

Work style reforms

340

305
0

Recruiting, deployment, evaluation

Improvingproductivity of
employees

2,000

FY23

FY32

Arranging internal
environment

Enhancingengagement of
employees

 Strengthening support system formales to obtain childcare leaves

 Population approach Group-wide health management
 Subsidizing costs for health checkups
 Holding health seminars and events

Realizing five Well-Being*¥4.4 million (FY23) →¥5.6 million (FY26)
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

23% or higher

19.0%

 High-risk approach Making health checks mandatoryfor employees aged 40 or older
 Improving the stress check system

Corporate consulting area
Personal consulting area
New business area
Administrative and middle back areas

Customer operating profit per employee<Percentage of femaleswith managerial positions>

Sales

FY23

FY26

* Career, Social, Financial, Physical, Community

HR

Employee engagement score

70 (FY23) →72 (FY26)‐ 37 ‐

アップグレード
戦略—Upgrade Strategy— Initiatives in BPR Divisions
Create structure that supports business activities originating from materiality in cross-organizational manner by generating management
resources through improvement of productivity of entire GroupBank branches

Basic initiatives
 Reconstructing a framework in response to updates, upgrades, or otherchanges in each system
Further accelerating simplification of
Utilization of new bank branch system
Update/upgrade of infrastructure ofclerical work and centralization at
loan-support system
Operation of new international coreheadquarters by utilizing new functions
banking system Deepening various BPR measures by rooting and improving systems built in past
Cashless processing
Simplification of clerical
workflow

Bank Headquarters/Group
Companies

Development of headquarterscentralizing measures

Minimizing clerical work of handling cash at bankbranches
Simplifying clerical work and enhancing
convenience for both customers and bank
Expanding headquarters-centralizing measures ofclerical work (reducing amount of clerical work atbank branches) Improving productivity of entire Group by minimizing routine and clerical
Sorting out operations at headquarters and drasticallywork
reviewing existing operations
Abolition, Review, andReducing operations at headquarters by expanding
Automation
use of digital technologies

Reductions in amount of materials
and consolidation of common tasks
Development of work infrastructure

Centralizing routine clerical work and developing
infrastructure
Streamlining operations and strengthening
cooperation between Group companies

 Business activities in care of environment
Reductions in paper use
through digitization•In-house development of digital
workflow• Expansion of electronic contracts into
entire company, etc.

Introduction of electric power
derived from renewable energy
Optimization of vehicle
numbers

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

Moving from paper culture by further utilizing
digital technologies
Optimizing amount of materials and reducing
amount of paper consumption

Promoting paperless operations and introducing
electric power derived from renewable energy
Optimizing vehicle numbers, etc.

Initiatives for acceleration
Instruction
andpromotion

Encouraging officers andemployees to change theirawareness through instruction
and promotion so that BPR
measures are thoroughly
understood

Taking root ×Bank branches[Administrative staff incharge of operations]
Reduction in amount ofclerical work

Improvement
Improving skills of officers
and employees by fosteringawareness of HR
development and BPR

Introducing newtechnologies

Minimizing clerical work at bank branches togenerate resources that can be input to solve
issues of customers and local communities

Enhancinghuman
resourcesAI

Improving systems centered on
digital technologies by introducing newtechnologies such as generative AI, while
continuing to reskill officers andemployees

Transforming work style
Aiming at realizing new work style byadopting measures related to work-stylereforms without sanctuary, considering
move to new head office building

Bank branches[Administrative staff incharge of loans]
Reduction in amountof clerical work

Compared to March 2018

Reduced 65%→ To places for“offering value”

Compared to March 2020

Reduced 30%→ Shift of resources to“decision” operations

Create a structure that supports business
operations in cross-sectional manner bygenerating necessary management resources
through improvement of productivity

Bank Headquarters Compared to December 2017
Group Companies
Reduction in
working hours

Reduced 300

thousand hours/year→ Equivalent to 150
employees‐ 38 ‐

—Upgrade Strategy— Initiatives in Channel Divisions
Optimize touch points for connecting with customers by improving “non face-to-face channels” and reviewing functions and deployment of “branches(face-to face channels)”
DigitalReal Optimizing branch functions and deployment, mainly focusing
on changes in functions
Abolishmentof branches

Laborsaving
branches

Group HeadsystemConsidering based on local
characteristics

 Effective use of branch real estate
Making profits
More energy saving and energy
creation

Considering for both new
branches and existing
branches (idle)

 Improving and promoting AGENT app
Continued addition
and improvement ofapp functions

VC reception center
Telephone reception center
Customer support center

Consolidation

Expanding approach ofmanagement work to massretailImproving efficiency byconsolidating bases

 Establishing business support desk (tentative name)
Establishment of a loan
consulting system without faceto-face communication

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

Consolidating small-scaletransactions
Providing consulting or othersupport to “SMEs and microcompanies” with which
communication is likely to decrease→Cooperating with bank branches

Improving chat
Responding toinvestmenttrust systems

Utilizing generativeAI, etc.

Collaborating with DHD service,etc.

Promotion of AGENT
app

Strengthening approach tocustomers who open new
accounts
Shift from investment trustinternet banking users, etc.

Increase inutilization rate

Strengthening communication
via app→ Enhancing CX andincreasing touchpoints byproviding useful information

Hybrid Improving contact centers

Assuming MVP17 in fiscal 2024
Continuing development inand after fiscal 2025

 Improving and promoting Iyogin Business Portal
Improvement incollaborative
services

Improving functions
related to loans, subsidies,
etc.

Promotion ofbusiness portal

Making recommendations
according to customers→ Enhancing CX andincreasing touchpoints byproviding useful information

Optimizing branches (face-to-face channels)
Number of
branches withchangedfunctions or
deployment

Cumulative

66 branches

Maintaining and expanding touchpoints
with customers
Number ofcustomers
contacted*

FY26

359

thousand persons* Number of persons contacted (1) through customers’branch visits, (2) through our customer visits, (3) byphones, (4) via personal internet banking, (5) via
AGENT app, etc. within three months‐ 39 ‐

—Upgrade Strategy— Initiatives in IT Divisions
Develop and improve data utilization system and enhance IT governance, in addition to construction of safe, stable, and secure nextgeneration core system

Construction of safe, stable, and secure next-generation core system
Developing and improving data utilization system bystreamlining core system and centralizing database

Enhancing IT governance through various measures for smallscale distributed systems in response to construction of nextgeneration core system

Improving system-development capability within the Groupthrough construction of next-generation core system

Utilizing new technologies, etc.
 Utilizing generative AI
 Improving network environments (considering zero trust, etc.)
 Studying and examining new technologies, etc.
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

Developing and improving data utilization system
 Improving data utilization infrastructure Strengthening data analysis and utilization capability
 Strengthening cross-channel data linkage and activities

Enhancing IT governance Strengthening planning and implementation system of IT investment
projects
 Preparing plans for IT investments and development in response toconstruction of next-generation core system

Expanding system-development resource Strengthening cooperative systems with partner companies
 Enhancing vendor-management capability Outsourcing development systematically to partner companies

Strengthening cybersecurity
 Strengthening cross-organizational cybersecurity management
system Conducting continuous vulnerability assessments and improving
monitoring and analysis
 Reviewing contingency plan through exercises and training‐ 40 ‐

Future business results contained in this document are
based on information available as of announcement andassumptions regarding uncertain factors that may affectfuture business results.

Future business results may differ due to changes in the
management environment, etc.

<For inquiries regarding this document>

Iyogin Holdings

Ueda, Corporate Planning Division
TEL:089-907-1034/FAX:089-946-9104

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐ 41 ‐

Iyogin Holdings Fiscal 2023 Earnings Briefing
Reference Materials(April 1, 2023 –March 31, 2024)

Iyogin Holdings
June 7, 2024

INDEX

Overview of the Iyogin Holdings

Pg

Conditions in Loans and Deposits

Pg◎Profile

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

12◎List of Group Companies

3◎Balance and Composition of Loans by Industry

13◎Location Network

4◎Table of Changes in Borrower Classification

14

Environment Surrounding the Iyogin Holdings

Pg

Status of Market Investment and Risk Management

Pg◎Main Industries in Ehime Prefecture

5◎Management by Risk Category: Securities Investment

15◎Manufacturing Industry in Ehime Prefecture

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

7◎Economic Indicators of the Setouchi Region I

8◎Economic Indicators of the Setouchi Region II

9

Status of Ocean Transport-Related Market

Pg◎Shipbuilding Yards in Ehime Prefecture

10◎Outlook of Dry Bulk Market Conditions

11

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐1‐

Profile
Trade nameYear ofestablishment /foundation
CapitalExternal credit
ratings

Iyogin Holdings, Inc.

The Iyo Bank, Ltd.

Established on October 3, 2022

Founded on March 15, 1878 (The 29th National Bank)¥20,000 million¥20,900 million

AA: Japan Credit Rating Agency (JCR)

AA: Japan Credit Rating Agency (JCR)

A: Rating and Investment (R&I)

A+: Rating and Investment (R&I)‒

A-: Standard & Poor’s (S&P)

Headquarters /Head Office

1 Minami-Horibata-cho, Matsuyama-shi, Ehime, Japan

Consolidated
employees

3,019 employees (excluding temporary staff)

Branch network

Iyo Bank: 152 domestic (including 27 branches within branches, 10 sub-branches), 1 overseas (Singapore),
2 overseas representative offices (Shanghai, Hong Kong)
Iyogin Leasing: 11 domestic
Shikoku Alliance Securities: 5 domestic<As of March 31, 2024>

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐2‐

List of Group Companies
B a n ki n g b u s i ne s s

14 consolidated
subsidiaries

The Iyo Bank, Ltd.
The Iyogin Business Service
Company Limited

Iyogin Holdings, Inc. (holding company)

Iyogin Challenge&Smile Co., Ltd.

Deposit business, lending business, securities investment
business, exchange business
Cash organization and inspection business, maintenanceand management business of automated cash facilities, etc.
Manufacturing business for office supplies, etc.

The Iyogin Credit Guaranty
Company Limited

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

Iyogin Capital Company Limited

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

7 consolidated subsidiaries
Iyogin Regional Economy ResearchCenter, INC.
Iyogin DC Card CO., LTD.

Investigation and research business regarding industry,
economics, finance, etc.
Credit card business, guarantee business, etc.

Leasing business1 consolidated
subsidiary

Iyogin Leasing Company Limited

Lease business, etc.

Other

3 consolidated
subsidiaries

Iyogin Computer Service Company
LimitedConsigned information processing business, softwaredevelopment business, etc.

Shikoku Alliance Securities Co., Ltd.

Securities businessIyogin Digital Solutions Co., Ltd.
(As of March 31, 2024)
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

Consulting services for operational improvement utilizing
digital technology, etc.

* Apart from the above, the Group has 5 non-consolidated non-equity method subsidiaries and 3 non-equity method affiliates.

‐3‐

Location Network■ Created the No. 1 regional bank group 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
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)

Tokyo region

Iyo Bank: 9 branches
Iyogin Leasing: 2 branches

Iyo Bank: 2 branches

Okayama

Hiroshima

Iyo Bank: 8 branches
Iyogin Leasing: 1 branchOverseas

Hyogo

Iyo Bank: 1 branch, 2 offices

Osaka
KagawaWithin Ehime

Kyushu region

Iyo Bank: 1 branch

Chugoku region

Yamaguchi

Fukuoka

Tokai region

Iyo Bank: 120 branches
Iyogin Leasing: 6 branches
Shikoku Alliance Securities: 5 branches

Kinki region
Tokushima
Kochi

Iyo Bank: 5 branches
Iyogin Leasing: 1 branch

Oita
Shikoku region, excluding Ehime

Iyo Bank: 7 branches
Iyogin Leasing: 1 branch

11 prefecturesin the Setonaikai region

Number of branches of Iyo Bank
152 domestic, 1 overseas, 2 overseas representative offices(of which, Iyogin SMART: 3 branches)(of which, Iyogin SMARTplus: 14 branches)(of which, branches within branches: 27 branches)
Number of branches of
Iyogin Leasing

11 domestic

Number of branches of
Shikoku Alliance Securities

5 domestic(As of March 31, 2024)
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐4‐

Main Industries in Ehime Prefecture■Industries with top national share concentrated in each region

Imabari Region■Manufactured product shipments from Ehime Prefecture totaled¥4.8 trillion (46.6% of Shikoku) in 2021

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

Matsuyama Region
The Matsuyama region has companies with large shares in
products such as “small once-through steam boilers,” “farmmachinery,” and “dried bonito shavings.”

59.6％(¥31.0 billion)

No. 1 in Japan (Note 2)

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

Towels (2021)¥52.0 billion shipped in Japan

Uwajima Region
15.2％(¥79.3 billion)

No. 1 in Japan (Note 2)
Sea culture industry (2022)¥521.1 billion total national
production

Niihama Region

Manufactured product shipments(2021)¥2,089.6 billion

Approx. 43.9% of shipments ofmanufactured products in Ehime

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

•(Note 1) Iyogin Regional Economy Research Center, Inc. (IRC) estimates; the ranking in Japan excludes operators.
•(Note 2) Ranking of Ehime Prefecture
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

Uma (Shikokuchuo) Region
7.6％(¥547.5 billion)

No. 2 in Japan (Note 2)
Pulp and paper industry (2021)¥7,214.3 billion shipped in Japan

Source: Prepared based on the Ministry of Economy, Trade and Industry’s “Economic Conditions Survey 2022” andthe Ministry of Agriculture, Forestry and Fisheries’ “total fishery output for 2022 (revised figures).”‐5‐Manufacturing Industry in Ehime Prefecture■Ehime Prefecture has manufacturing industries distinctive to each region

Others25.3%

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

Production
machinery
22.6%

Matsuyama¥469.1 billion

Fiber Industry
3.1% Food
Chemicals
products
19.8%
11.2% General-purpose
machinery
18.0%

Electric
machinery
Food 2.3%
products
2.7%
Fibers4.1%

Transportation
machinery
26.2%

Plastic
5.0%

Others14.3%

Transportation
Saijo
machinery
Nonferrous
6.0%¥1,034.3 billion
metal
Production machinery
56.7%
6.1%
Steel
11.9%

Food Manufacturing
2.1%
General-purpose
machinery
5.5%
Plastic
7.7%

Others6.0%

Imabari¥1,045.2 billion
Manufacturing of
petroleum products
and coal products
58.7%

FibersFood products 3.1%
4.1%
Production
machinery
4.3%
Plastics
6.0%

Others9.6%

NiihamaNonferrous metal¥1,055.3 billion
49.9%

Chemicals
25.2%

Others
2.9%

Shikokuchuo¥642.8 billion

Pulp, paper, and paper processing
79.5%

Source: Prepared by Iyogin Regional Economy Research Center, Inc. (IRC) based on the Ministry of Economy, Trade and Industry’s “Economic Conditions Survey 2022”.
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐6‐

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

Okayama

Shipbuilding, textiles

Hiroshima
KagawaElectronics, farm machinery,
chemicals, tourism

ImabariNiihamaMatsuyama Saijo

Citrus, food processing

Shikokuchuo
Paper manufacturing andprocessing

Ozu
Yawatahama
Oita

UwajimaSteel, automotive, electronics, tourism

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

Chemicals, electronics,
nonferrous metal, generalmachinery
Culture fishery‐7‐Economic Indicators of the Setouchi Region I
Total population(Population estimate)

Total area
(Geospatial
Information
Authority of Japan)

October 2023

January 2024

(Persons)

Ehime
KagawaTokushima
Kochi
Oita
Fukuoka
Yamaguchi
Hiroshima
Okayama
Total of nine prefectures (A)(A)/(C)
Hyogo
Total of ten prefectures (B)(B)/(C)
National Total (C)Total of ten
prefectures
16.9％
Total population(Population
estimate)(October 2023)

1,291,356
925,588694,927
666,422
1,096,299
5,102,730
1,297,572
2,737,848
1,846,707
15,659,449
12.6
5,369,888
21,029,337
16.9
124,351,877

(km2)

5,676
1,877
4,147
7,102
6,341
4,988
6,113
8,479
7,115
51,83813.7
8,401
60,23915.9
377,975

Number of offices(Private sector,
excluding public
sector)2021(Offices)

59,021
44,52833,794
32,83949,937
205,965
55,759120,069
77,428679,340
13.4
199,966
879,306
17.3
5,078,617

Total of nine prefectures(excluding Hyogo)
12.6％
Total population(Population
estimate)(October 2023)

Number of
employees (Private
sector, excluding
public sector)

2021(Persons)

563,282435,625
304,672
275,520473,6902,294,657
571,2021,293,541
835,270
7,047,459
12.3
2,194,727
9,242,186
16.1
57,457,856

Prefecture total
production(Nominal)

Prefectural grossproduct growth rate
(Real)

Fiscal 2021

Fiscal 2021

(Billions of yen)

5,089.9
3,863.8
3,185.2
2,376.4
4,683.9
19,457.1
6,236.6
12,128.1
7,652.7
64,673.7
11.7
22,506.3
87,180.0
15.8
550,530.4

Total of ten
prefectures
15.8％

Gross prefectural
product (Nominal)(Fiscal 2021)

Prefectural Income
per capita

Fiscal 2021(％)

(Thousands of yen)

8.2
4.9
(1.9)
2.1
7.4
3.1
4.6
4.1
5.6

2,670
2,851
3,013
2,653
2,768
2,733
2,960
3,179
2,743

3.4

2,997

2.5

3,155

Total of nine prefectures(excluding Hyogo)
11.7％

Gross prefectural
product (Nominal)(Fiscal 2021)

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’ and Ministry of Economy, Trade and Industry’s “Economic Census”, the Ministry of Economy, Trade and Industry’s “Economic Conditions Survey 2022,” and the Cabinet Office’s “Prefectural Accounts.”

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐8‐

Economic Indicators of the Setouchi Region II
Manufactured
product shipments

2021(Millions of yen)

Ehime
KagawaTokushima
Kochi
Oita
Fukuoka
Yamaguchi
Hiroshima
Okayama
Total of nine prefectures (A)(A)/(C)
Hyogo
Total of ten prefectures (B)(B)/(C)
National Total (C)Total of ten
prefectures
19.9％
Manufactured
product
shipments(2021)

4,758,162
2,801,392
2,057,816
601,498
4,713,437
9,444,973
6,650,098
9,943,935
8,365,362
49,336,673
14.9
16,502,307
65,838,980
19.9
330,220,006

Annual wholesale
sales amount2021(Millions of yen)

2,466,898
2,202,125803,495
719,995
1,245,665
16,420,315
1,456,487
8,354,901
3,363,511
37,033,392
9.2
9,320,032
46,353,424
11.5
401,633,535

Annual retail sales
amount2021(Millions of yen)

1,472,320
1,140,868
706,601
703,764
1,186,677
5,678,040
1,648,500
3,132,853
2,028,495
17,698,118
12.8
5,367,928
23,066,046
16.7
138,180,412

Total of nine
prefectures(excluding Hyogo)
14.9％
Manufactured
product
shipments(2021)

Industrial production
index (annual
average)2023

Number of new
housing starts

2023

2015 = 100(Homes)

99.7
100.0
106.7
99.7
110.6
108.3
103.7(for 2022)
96.0
102.4

97.9

103.9

6,234
5,279
3,108
2,407
6,184
37,752
6,465
17,515
10,292
95,23611.6
30,134125,37015.3
819,623

Total of ten
prefectures
15.3％
Number of new
housing starts(2023)

Jobs-to-applicantsratio (annual
average)

Overallunemployment rate(annual average)

2023

2023

(Times)

(%)

1.38
1.45
1.20
1.18
1.42
1.24
1.51
1.55
1.55

1.9
2.2
1.9
2.0
2.0
2.7
1.6
2.0
2.1

1.02

2.6

1.31

2.6

Total of nine
prefectures(excluding Hyogo)
11.6％
Number of new
housing starts(2023)

Source: Prepared based on the Ministry of Economy, Trade and Industry’s “Economic Conditions Survey 2022”, 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” andthe Statistics Bureau of Japan’s “Labour Force Survey”
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐9‐

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

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

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

Iwagi Zosen Co., Ltd.

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

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

Onishi Shipyard,
Shin Kurushima Dockyard Co., Ltd.

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

Saijo Shipyard, Imabari Shipbuilding Co., Ltd.

15 Groups, 22 Offices
Source: Prepared by the Bank based on “Documents for Shipbuilding Under Jurisdiction” published by the Shikoku Land Transport Office*Shipbuilding facilities currently in operation either constructing or repairing steel vessels of at least 500 gross tons or 50 m or longer
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐ 10 ‐

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

Future Market Outlook■ Unit transport volume and shipping tonnage
6.0%

Growth rate of unit transport volume

5.7%
5.7%

■ Baltic Dry Index (BDI) trends

4.8%
4.1%

4.0%

4.0%

4.4%

2.9%
2.2%

2.0%

2.9%

2.4%

2.9%

2.9%

2.7%

1.6%
0.0%

-2.0%

3.6%

3.6%

3.1%

8,000

2.6%

6,000

0.0%

2014

2015

2016

2017

Source: “Clarkson Research Shipping Review & Outlook” (March 2024)”

2018

2019

2020

2021

2022

2023

2024

(Forecast)■ Dry bulk transport demand (transport volume) and supply (shipping
tonnage)●Although unit transport volume* of dry bulk vessels for 2022 was low due to the zero-COVID
policy in China, which greatly affected ocean logistics, it significantly recovered in 2023, with ayear-on-year increase of 4.4% as a result of such factors as economic recovery from the
COVID-19 pandemic, longer trade route distances from alternative regions brought about by
the ongoing invasion of Ukraine, and increased grain exports from South America.
●As for shipping tonnage, supply was restrained due to a shortage of building berths caused byincreased orders for LNG carriers and containerships worldwide, and there was no significant
slackening of supply-demand balance.
* Unit transport volume: Also called ton-mile. Indicates the tonnage and mileage of cargo transported
and is an indicator to measure actual demand for ships.
Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

Minimum value 290（February 2016）

2,000
-1.1%

2013

1,821
(March 31, 2024)

4,000

1.1%

0.0%

Maximum value
11,793（May 2008）

10,000

4.4%
3.8%

BDI

12,000Growth rate of shipping tonnage

02000/1

2003/1

2006/1

2009/1

2012/1

2015/1

2018/12021/12024/1■ Future market outlook● Although the current uncertainty in the Chinese economy is weighing on dry bulk cargo
movements, due to firm South American grain shipments and projected growth in the global
economy, no negative factors are seen in the medium to long term.
● As for supply of shipping tonnage of dry bulk, a phase of oversupply is not expected, as it was
restrained in the prior year, although the growth rate of shipping tonnage in 2024 is expected
to modestly exceed the growth rate of the unit transport volume. In addition, slower steaming
due to the Carbon Intensifying Indicator (CII) started in January 2023 and the traffic restriction
and congestion of vessels due to chronically low water levels in the Panama Canal aretightening factors on shipping tonnage which are expected to lead to tighter supply anddemand.
‐ 11 ‐

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

Municipal loans, etc.

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

(Units: Billions of yen)

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

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

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

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

September 2022
5,257.4
5,062.0
3,887.7
3,653.1
1,174.3
886.6
209.6
21.6
195.3

March 2023
5,326.0
5,137.8
3,964.9
3,738.8
1,172.9
884.0
210.2
21.1
188.1

September 2023
5,541.5
5,349.3
4,181.5
3,925.3
1,167.7
877.8
212.1
21.0
192.1

March 2024
5,667.4
5,480.5
4,311.8
4,055.2
1,168.6
876.5
212.3
20.6
186.9

Vs. March 2023

341.4
342.7
346.9
316.4
(4.3)
(7.5)
2.1
(0.5)
(1.2)

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

2. Breakdown of balance of assets in custody such as deposits, etc. at end of period(Units: Billions of yen)March 2020
6,094.1
5,754.3
5,265.6
3,512.5
1,564.4
119.8
40.8
28.0

September 2020
6,532.5
6,184.6
5,652.6
3,652.2
1,733.5
112.7
32.7
121.3

March 2021
6,870.9
6,522.6
5,983.1
3,740.7
1,853.4
162.8
43.4
182.6

September 2021
6,956.9
6,603.0
5,956.2
3,794.0
1,857.9
114.0
30.6
159.5

March 2022
7,015.2
6,654.1
6,041.8
3,850.8
1,915.1
141.7
45.2
88.8

September 2022
7,027.4
6,669.7
6,099.8
3,889.9
1,949.8
118.9
30.4
110.6

March 2023
7,196.0
6,823.2
6,189.0
3,916.3
1,950.3
147.5
67.4
107.4

September 2023
7,225.9
6,837.0
6,245.7
3,942.9
2,025.7
111.6
30.0
135.2

March 2024
7,357.8
6,949.0
6,501.0
3,961.2
2,084.0
218.7
67.7
169.1

General companies
Public

488.7
367.0
121.7

531.9
384.9
147.0

539.4
427.4
112.0

646.8
476.2
170.6

612.2
445.0
167.0

569.9
385.6
184.1

634.1
463.0
171.0

591.3
382.8
208.3

448.0
354.7
93.1

(186.1)(108.3)(77.9)

General company funds (incl. NCD)
Public funds (incl. NCD)

1,931.4
241.5

2,118.5259.8

2,280.8274.9

2,334.1
284.6

2,360.2308.8

2,335.5
303.0

2,413.3
318.5

2,408.5
320.0

2,438.8
311.8

25.5
(6.7)

Foreign currency deposits (balance)

89.3

96.3

99.0

116.0

133.1

138.6

136.0

143.4

130.6

(5.4)

3,841.4
3,512.5
328.8

3,988.5
3,652.2
336.3

4,078.3
3,740.7
337.6

4,137.4
3,794.0343.4

4,201.03,850.8
350.1

4,236.7
3,889.9346.8

4,278.1
3,916.3361.7

4,319.9
3,942.9376.9

4,357.6
3,961.2
396.3

79.5
44.9
34.6

339.7
19.8
53.8
214.2
51.7

347.8
19.9
58.7
211.3
57.7

348.3
19.2
61.6
208.7
58.6

353.9
20.0
64.0
207.2
62.5

361.1
21.3
67.8
205.4
66.4

357.7
23.9
64.4
203.6
65.6

372.7
28.2
67.0
208.3
69.1

388.8
33.7
70.5
212.1
72.4

408.7
41.7
77.1
211.3
78.6

36.0
13.5
10.1
3.0
9.5

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

202.4
542.2

226.6
574.5

245.2
593.5

246.3
600.2

246.0
607.1

254.2
611.9

275.0
647.8

300.7
689.6

321.8
730.6

46.8
82.8

Assets in custody composition (D/A+C)

8.6%

8.5%

8.3%

8.3%

8.4%

8.4%

8.7%

9.2%

9.5%

Total Deposits, etc. + assets in custody A
Total Deposits, etc.
Total deposits
Individual
General companies
PublicFinancial
Overseas / offshore

NCD

Individual deposits + individual assets in custody
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

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

Vs. March 2023

161.8
125.8
312.0
44.9
133.7
71.2
0.3
61.7

－

(Note) The figures shown for foreign currency deposits (balance) are the total excluding overseas / offshore.

‐ 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
March 2019

March 2020

Composition

Manufacturing

March 2021

Composition

March 2022

Composition(Units: Billions of Yen, %)March 2023

Composition

March 2024

Composition

Vs. March 2023

Composition

Balance

Rate of balance
increase/decrease

643.0

14.5

650.5

14.1

660.2

13.7

638.8

13.2

676.6

13.3

698.0

12.9

+21.4

+3.2%

Agricultural

2.7

0.1

2.6

0.1

2.5

0.1

2.8

0.1

4.0

0.1

3.8

0.1

(0.2)

(5.0)%

Forestry

0.3

0.0

0.4

0.0

0.4

0.0

0.4

0.0

0.4

0.0

0.4

0.0

+0.0

+0.0%

Fishing

11.3

0.3

11.9

0.3

8.8

0.2

8.1

0.2

6.7

0.1

8.3

0.2

+1.6

+23.9%

Mining

8.6

0.2

7.1

0.2

6.7

0.1

6.4

0.1

4.3

0.1

3.4

0.1

(0.9)

(20.9)%

116.3

2.6

116.0

2.5

135.1

2.8

135.7

2.8

153.4

3.0

167.0

3.1

+13.6

+8.9%

134.0

3.0

154.4

3.4

176.7

3.7

200.6

4.1

219.6

4.3

235.4

4.4

+15.8

+7.2%

22.0

0.5

18.9

0.4

17.7

0.4

18.0

0.4

12.4

0.2

13.3

0.2

+0.9

+7.3%

717.9

16.1

769.7

16.7

859.7

17.9

896.8

18.5

1,029.6

20.2

1,261.3

23.3+231.7+22.5%Of which, oceantransport

580.3

13.0

639.3

13.9

724.6

15.1

765.7

15.8

895.5

17.6

1,128.2

20.9+232.7+26.0%

Wholesale and retail

511.6

11.5

504.3

10.9

518.1

10.8

516.5

10.6

554.9

10.9

559.2

10.3

+4.3

+0.8%

Finance and insurance

200.2

4.5

185.3

4.0

180.9

3.8

205.8

4.2

207.1

4.1

219.2

4.1

+12.1

+5.8%

Real estate

270.5

6.1

299.8

6.5

315.8

6.6

311.7

6.4

324.5

6.4

340.1

6.3

+15.6

+4.8%

Various services

438.5

9.9

467.6

10.1

496.7

10.3

483.3

10.0

485.4

9.5

483.4

8.9

(2.0)

(0.4)%Of which, medicalrelated

192.2

4.3

197.2

4.3

209.7

4.4

207.0

4.3

203.2

4.0

200.8

3.7

(2.4)

(1.2)%

Regional public entities

234.8

5.3

230.0

5.0

212.0

4.4

197.7

4.1

186.6

3.7

185.4

3.4

(1.2)

(0.6)%

1,136.1

25.5

1,188.525.8

1,217.3

25.3

1,229.0

25.3

1,233.8

24.2

1,231.7

22.8

(2.1)

(0.2)%

4,448.4

100.0

4,607.5

100.0

4,809.5

100.0

4,852.4

100.0

5,099.9100.0

5,410.8

100.0+310.9+6.1%

Construction
Electricity, gas, heatprovision, water
Information
communications
Transportation

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, 2024, excluding “goods rental,” was ¥318.6 billion, which is an increase of ¥14.5 billion (+4.8%) compared with the year ended March 31, 2023.
In addition, “other” includes “home renting by individuals” (¥220.7 billion for the year ended March 31, 2024).
* “Ocean transport” displays balances applicable to the “ocean transport industry” according to Japan Standard Industrial Classification.

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐ 13 ‐

Table of Changes in Borrower Classification■ Activities for supporting enhancement of corporate value are conducted through business feasibility assessments of customers■ Corporate revitalization support is provided mainly by the Corporate Support Office
Use of various types of revitalization schemes, such as reconstruction funds and the SME Business Rehabilitation Support Co-operative,
as well as solution sales[Changes in borrower classification for business borrowers] (one year)
March 31, 2024

Upper row: Number of borrowers
Lower row: Credit amount(Units: Billions of yen)

Borrowers
requiringclose monitoring

Normalborrowers

Total

Borrowers under
Borrowers atstrict observation risk of bankruptcy

Substantiallybankrupt
borrowers

Bankrupt
borrowers

Rate ofdegradation toat risk ofbankruptcy or
below

Improvement

Degradation

640

18,577

16,904

16,264

573

15

31

20

1

0.28%

4,046.2

4,134.0

4,027.8

102.5

1.6

1.9

0.2

0.0

0.05%

Borrowers requiring
close monitoring

2,180

2,066

472

1,531

13

50

0

0

2.29%

472

63

343.1

340.4

78.1

248.6

8.6

5.0

0.0

0.0

1.45%

78.1

13.6

Borrowers understrict observation

112

104

9

12

60

22

1

0

20.54%

21

23

30.2

27.2

0.9

4.2

15.8

6.3

0.0

0.0

21.01%

5.1

6.4

429

404

25

35

6

327

6

5

66

11

67.1

64.2

1.0

3.4

1.6

56.9

1.0

0.3

6.0

1.3

80

55

0

0

0

0

53

2

0

2

2.7

1.7

0.0

0.0

0.0

0.0

1.7

0.0

0.0

0.0

13

4

0

0

0

0

0

4

0

0.2

0.1

0.0

0.0

0.0

0.0

0.0

0.1

0.0

21,391

19,537

16,770

2,151

94

430

80

12

559

739

4,489.5

4,567.6

4,107.8

358.8

27.6

70.1

3.0

0.4

89.3

127.5

Normal borrowers

March 31, 2023

Borrowers
at risk ofbankruptcy
Substantiallybankrupt borrowers
Bankrupt borrowers
Total

ー

106.2

ー

(Note 1) The chart displays the changes in the borrower classification from March 31, 2023, to March 31, 2024.
(Note 2) The balances after changes are the balances after write-offs as of March 31, 2024.

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐ 14 ‐

Management by Risk Category: Securities Investment(Units: Billions of yen)

Year ended March 31, 2024
Risk Category
(*1)

Book
balance

Evaluation
gain / loss

MarketbalanceComposition

Vs. March
2023

Total
profit /loss (*2)

Profit / loss
Increase/from purchase, decrease on
sale, andgain/loss on
Interest
Procurement amortization evaluation (vs.
cost
(*4)
March 2023)
received (*3)

Interest and dividend income

Source of main revenue and profit

Difference in long and short term interest on yen
interest

Yen-denominated bonds

554.4

(0.1)

554.3

26.9%

(7.0)%

0.7

2.8

2.8

0.0

(0.4)

(1.7)

Of which, JGBs

168.5

+5.0

173.5

8.4%

+1.5%

1.5

2.1

2.1

0.0

0.0

(0.6)

82.7

+3.6

86.3

4.2%

(1.5)%

1.8

1.9

1.9

0.0

0.0

(0.1) Rise in expected inflation rate

Foreign currency bonds (with hedges)

557.3

(2.6)

554.6

26.9%

+12.6%

(4.5)

(2.8)

13.7

16.6

(1.5)

(0.1)

Foreign currency bonds (without hedges)

374.5

+11.8

386.2

18.7%

+1.7%

34.7

11.4

11.4

0.0

13.3

+9.9 Gain on foreign exchange /interest revenue

Domestic and overseas stocks (incl. stock trusts)

116.2+336.9

453.0

22.0%

(4.8)%

72.9

8.5

8.5

0.0

5.2

+59.2

Alternatives

105.2

+9.6

114.8

5.6%

(2.4)%

6.0

2.8

2.8

0.0

(0.3)

+3.5

Hedge funds

31.0

(1.8)

29.2

1.4%

(0.4)%

0.6

(0.0)

0.0

0.0

(0.3)

Real estate-related

59.2

+9.8

69.1

3.3%

(1.8)%

4.5

2.8

2.8

0.0

(0.0)

Private equity

10.1

+0.0

10.1

0.5%

(0.1)%

(0.1)

(0.1)

(0.1)

0.0

0.0

Emerging stocks

4.9

+1.5

6.4

0.3%

(0.1)%

1.0

0.2

0.2

0.0

0.0

Total

1,707.5+355.42,063.0

100.0%

109.7

22.7

39.3

16.6

16.2

+70.7

Of which, inflationindexed JGBs－

Difference in long and short term interest on
overseas interest
Growth in domestic/foreign companies centered ontransaction partners

Strategic diversification by external consigned
management
Revenue from real estate rentals and profit from
+1.7
price increase
Rise in enterprise value due to management(0.0)
improvement of unlisted stocks, etc.
Growth and foreign exchange gains in emerging+0.8
markets+0.9*1 Assets invested by the Securities Investment Division calculated based on primary risk, regardless of accounting item (on the basis of including money held in trust, etc.)*2 "Total profit / loss" and "interest and dividend income" eliminate three-month SOFR 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

(2.2)

125.3

6.1%

(3.3)%

1.2

0.6

2.4

1.8

0.1

+0.5

0.9

(0.0)

0.9

0.0%

(0.1)%

0.0

0.0

0.0

0.0

0.0

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

128.5

(2.2)

126.2

6.1%

(3.3)%

+1.2

+0.6

+2.4

+1.8

+0.1

+0.5

Securitized products
SubtotalBusiness continuity of domestic and foreigncompanies, etc.

127.6

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐ 15 ‐

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

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

(Units: Billions of Yen)

March 2024

March 2024
Loan balanceCommitment
balance

Total

Loan balance

Composition

Total

Composition

69.5

4.1

73.7

47.6%

37.2

0.0

37.2

24.0%

Manufacturing

28.4

5.5

34.0

21.9%

14.9%

Various services

15.8

0.0

15.8

10.2%

13.1

8.5%

Financial

9.5

2.1

11.6

7.5%

0.0

1.7

1.2%

Transportation

10.0

0.0

10.0

6.5%

1.7

0.0

1.7

1.1%

7.7

0.0

7.7

5.0%

Other
(international organization)

2.2

0.0

2.2

1.5%

Wholesale and retail

3.5

0.0

3.5

2.3%

Total

141.7

13.1

154.9

100.0%

Construction

1.5

0.0

1.5

1.0%

Other

3.3

1.2

4.6

3.0%

141.7

13.1

154.9

100.0%

Japan

72.6

3.1

75.8

49.0%

North America

27.9

9.0

37.0

23.9%

27.2

9.0

36.3

23.4%

Europe

23.1

0.0

23.1

Asia and Oceania

12.2

0.9

Middle East

1.7

Latin America(Of which, the U.S.)* Excluding Singapore BranchElectricity and gas

Commitment
balance(Of which, solar power
generation)(Of which, aircraft finance)

Total* Excluding Singapore Branch

Copyright © 2024 Iyogin Holdings,Inc. All Rights Reserved.

‐ 16 ‐