Prime Market of the Tokyo Stock Exchange︓8359

The 49th Information Meeting
May 12, 2022

・This document has been prepared for information purpose only so it should not be construed as anoffer or solicitation to buy or sell any securities.
・This document includes statements concerning future business results. These statements do notguarantee future business results but contain risks and uncertainties. Please note that futurebusiness results may differ from projections for reasons such as changes in the business environment.
・ Information contained herein may be changed or revised without prior notice.

＜For inquiry＞
Planning & Coordination Dept. Investor Relations
TEL︓026-224-5512
FAX︓026-226-5077
E-mail︓ irtantou@82bank.co.jp
THE HACHIJUNI BANK,LTD. The49th Information Meeting

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

Hachijuni Bank’s Profile
Company nameTHE HACHIJUNI BANK, LTD.

Head office

Nagano City, Nagano Prefecture

Date ofestablishment

August 1st, 1931

Network

Domestic: 151 (In Nagano: 131,
outside Nagano:20)
Overseas Branch: 1 (Hong Kong)
Representative Offices: 3（Shanghai, Bangkok, Singapore）

No. of employees

3,067（▲92 from FY2020)

Capital stocks¥52.2bn

Issued shares

511,103 thousand shares

Total assets¥13,265.2bn（+¥1,190.1bn from FY2020）

Net assets¥834.0bn（+¥1.1bn）

Loans¥8,066.6bn（+¥395.8bn）

Deposits¥5,974.0bn（+¥386.5bn）

Total capital ratio（Basel Ⅲ）

Consolidated: 19.06％（▲1.63％）

Ratings

2

The Hachijuni Bank’s share was selected by"FTSE Blossom Japan Sector Relative Index"
FTSE Russell selected the Hachijuni Bank’s share as acomponent stock of FTSE Blossom Japan Sector RelativeIndex. This new index was made for the purpose ofevaluating the size of environmental burden, the shift todecarbonization, and efforts in climate change. It consists ofJapanese companies shares, reflecting ESG performance ineach sector.
The Bank will make utmost efforts
to raise its corporate value as
the reliable company which
can meet the expectationof all stakeholders.
FTSE Blossom Japan Sector Relative Index is widely used to create
and evaluate sustainable investment funds and other financial
products.

Non-Consolidated: 17.62％（▲1.68％）
S&P Global Ratings︓ AR&I
︓ A+
JCR
︓ AA

THE HACHIJUNI BANK,LTD. The49th Information Meeting

As of Mar 31, 2022

Head Office

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

Index3

Main Volume

P.4〜29１．Outlines of FY2021 Financial Results
２．Management Policy"Profit from services to customers" turned profitable.

Topics【Profit from services to customers】 ＝ 【Outstanding balance of loans × interest margin＋profit on fees & commissions】－ 【Operating expenses】

3/20163/20173/20183/20193/20203/2021

3/2022

Outstanding balance of loans ×interest margin＋profit on f&c

59,25853,69353,20752,92352,78250,51651,454

Operating expenses

56,39960,48857,65554,71253,26952,596

48,510

Profit from services to customers

2,859▲6,795▲4,448▲1,789▲487▲2,0802,944

Unit: ¥1mn

THE HACHIJUNI BANK,LTD. The49th Information Meeting

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

Outline of FY2021 Financial Results■Consolidated（¥100mn）

4■Non-Consolidated

3/2021

3/2022

832
708
92
29

817
684
99
31

▲15
▲24
7
1

780
661
102
15

24

19

▲4

-

G&A expenses（C）

523

508

▲15

532

Actual net business profit（A-C）

308

309

0

250

Core net business profit（A-B-C)

284

289

4

250

282

339

57

-

5
303

▲19
328

▲24
24

4
245

Gains/losses related to stocks（E）

64

21

▲42

41

Gains/losses on money held in trust

▲7
82

5
39

12
▲43

24

Reversal of allowance for loan losses

-

-

-

-

Reversal of general reserve

-

-

-

Reversal of specific reserve

261
▲2
185

313
0
223

52
3
38

290
200

Profit/losses related to securities（B+E）

88

41

▲46

41

Credit related expenses

86

19

▲67

29

3/2021

3/2022

Change

961

938

▲22

Profit on interest

709

684

▲24

Profit on fees &commissions

152

164

11

Trading profit

33

20

▲12

Profit from otherbusinesstransactions

66

69

2

General &administrative expenses

590

540

▲49

Credit related expenses

93

19

▲74

Gains/losses related tostocksTransfer to general reserve for possible
loan losses（D）

66

21

▲44

Net business profit（A-C-D)

Gains/losses on money
held in trust

▲7

5

12

Ordinary profit

321

380

58

Profit attributable toowners of the parent

223

266

42

Ratio of consolidated
profits to parent
company’s profits(times)

1.208

1.190

▲0.018

Consolidated grossbusiness profit

Profit on f&c
Profit from obt
Gains/losses related to bonds(B)excl. gains/losses on cancellation of
investment trusts

Temporaryprofit/losses

Profit attributable to owners of
the parent

Profit on interest

Disposal of NPL

Ordinary profit
Extraordinary gains/losses◆ FY2022 Forecasts (consolidated)
Ordinary profit

Gross business profit（A）¥33.0bn¥23.0bn

THE HACHIJUNI BANK,LTD. The49th Information Meeting

ProfitChangeInitial Plan

（Note) The classification of dividends on group credit life insurance was changed from other income tothe decrease in fees & commissions payment in this period. The above figures of 3/2021 werealso revised reflecting this change.
Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

Review of FY2021 Financial Results

5■ Non-ConsolidatedCore net business profit was ¥28.9bn (+¥0.4bn from FY2020) due to the increase in profit on fees &commissions (sales commissions of investment trusts, consulting fees）and the decrease in G&A expenses(personnel expenses, non personnel expenses) despite the decrease in profit on interest.



Ordinary profit was ¥31.3bn (+¥5.2bn) due to the decrease in credit related expenses despite the decreasein gains/losses related to stocks.

Profit was ¥22.3bn (+¥3.8bn) due to the increase in ordinary profit despite the increase in corporate tax.

■ Consolidated

Ordinary profit was ¥38.0bn (+¥5.8bn) due mainly to the increase in non-consolidated profit.

Profit attributable to owners of the parent was ¥26.6bn (+¥4.2bn).



Ratio of consolidated profits to parent company’s profits was 1.19 times (cf. 1.20 times of FY2020).

Future Forecasts（additional information)


Economic impact of COVID-19 pandemic will continue for some time, and it will have a certain impact on
credit risk, mainly on loans and the creditworthiness of some borrowers will deteriorate. But we expect
the increase in credit related expenses will not be significant.
Assumptions are uncertain, and changes in the infection situation and its impact on the economy could
affect future results.

THE HACHIJUNI BANK,LTD. The49th Information Meeting

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

Gross Business Profit (Non-Consolidated）


Gross business profit decreased by ¥1.5bn from FY2020 because the decrease in profit on interest
exceeded the increase in profit on fees & commissions.

■ Gross Business Profit
871
Profit fromobt
Profit on
f&c

Profit on

6

97
84

689

832

（¥100mn）

817

29

780
15

31

92

99

708

102

684

661

interest

3/2020
Full Year

3/2021
Full Year

3/2022
Full Year（¥100mn）

3/20203/2021

3/2022

Profit on interest

689

708

684

Gains/losses oncancellation of
investment trusts

▲4

2

▲50

THE HACHIJUNI BANK,LTD. The49th Information Meeting

3/2023(Plan）◆ 3/2022 Increase/Decrease Factors
3/2021

3/2022

ChangeProfit oninterest

708

684

▲24

Profit on
fees &
commissions

92

99

+7

31

+1

（¥100mn）

Profit fromotherbusinesstransactions

29

For reference
See page７

Profit on Interest

See page 11

Profit on Fees &Commissions

See page 13

Profit/Losses Related
to Securities◆ 3/2023 Initial plan at the beginning of the fiscal year Gross business profit: ¥78.0bn (▲¥3.7bn from 3/2022）
 Profit on interest: ¥66.1bn（▲¥2.3bn）
Profit on f&c: ¥10.2bn（ +¥0.3bn）
Profit from obt: ¥1.5bn（▲¥1.6bn）
Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

Profit on Interest (Non-Consolidated）

7



Interest on loans was ¥41.9bn（▲¥1.3bn from FY2020).

Profit on interest of 3/2023 will decrease by ¥2.3bn from 3/2022.
3/20233/20203/2021

3/2022

689

708

684

661

469

433

419

432

Domestic

418

406

396

―

International

51

26

22

―

Interest & dividends on
securities

316

323

268

280

Domestic

226

241

182

―

International

89

81

86

―

excl. gains/losses oncancellation of investment
trusts

321

320

319

―

Interest on deposits

▲35

▲9

▲5

▲10

Domestic

▲4

▲3

▲2

―

International

▲30

▲5

▲3

―

Interest payment oninterest rate swaps

▲28

▲33

▲31

▲29

Domestic

▲17

▲23

▲19

International

▲10

▲10

3/20202,859(¥100mn）

Profit on interest
Interest on loans（¥100mn）
Loans to the Japanese
government (average balance)Plan Yield（％）
3/20203/2021

3/2022

3/2023

0.86

0.77

0.72

0.73

0.79

0.75

0.71

―

0.84

0.81

0.77

―

International

2.70

1.25

0.88

―

Yield on securities

1.22

1.15

0.99

1.14

Domestic

1.04

1.05

0.81

―

International

2.14

1.66

1.79

―

Funding costs

0.13

0.06

0.03

0.07

Domestic

0.02

0.02

0.01

―

―

International

1.64

0.57

0.31

―

▲12

―

Yield on deposits

0.05

0.01

0.00

―

3/2021

3/20229/2022Plan

Domestic

0.00

0.00

0.00

―

3,133

4,211

4,452

International

1.94

0.44

0.22

―

THE HACHIJUNI BANK,LTD. The49th Information Meeting

Yield on loans
Domestic
excl. loans to theJapanese govt.

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

Major Accounts (Loans/Deposits)8

Average balance of loans and that of deposits both marked new records.



Loans inside and outside Nagano Prefecture increased firmly, and the increasing trend will continue.

■Average Balance of Loans（¥100mn）

54,316

OutsideNagano26,80858,838

58,11256,162■Average Balance of Deposits（¥100mn）

68,04329,88729,44028,092

Outside27,50728,07028,671

28,9503/20203/2021

3/2022

3/2023

Inc/Dec
ratio（Plan）

5,713

5,942

62,19067,697

71,762

74,2983/2022

3/2023

Nagano3/2020
Inc/Dec
ratio

3/2021（Plan）

3/2021

3/2022

3/2023All offices

2.83

7.88

6.14

2.97

1.51

OutsideNagano

1.75

▲2.39

7.82

▲3.53

0.97

InsideNagano

2.93

8.85

6.00

3.53

3/2021

3/2022

3/2023All offices

3.51

3.39

3.47

1.24

OutsideNagano

5.20

4.78

4.79

InsideNagano

1.91

2.04

2.14

THE HACHIJUNI BANK,LTD. The49th Information Meeting

6,160

3/20203/2020（Annual︓％）73,41180,241NaganoInsideInsideNagano5,853

77,923（Plan）（Annual︓％）

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

（Plan）All Rights Reserved.

１．Outlines of FY2021 Financial Results

Main Figures (Business Loans)

9Business loans increased by ¥83.2bn from FY2020 due to the increase in fund raising support forcustomers affected by COVID-19.

■Business Loans by District（Outstanding Balance）
31,67732,89333,725

OutsideNagano 19,580

20,317

20,50921,189Inside11,249Nagano11,35912,383

12,5363/20193/20203/2021

3/202230,830■Business Loans for SMEs※(Outstanding Balance)

The ratio of SME loans to total business loans

46.9%

25,00024,50024,00023,50023,00022,50022,00021,50021,00020,50020,00019,50019,00018,50018,00017,50017,00016,50016,00015,50015,00014,50014,00013,50013,00012,50012,00011,50011,00010,50010,000
9,500
9,000
8,500
8,000
7,500
7,000
6,500
6,000
5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

46.2%

48.9%

■Business Loans by Sector（¥100mn)（Outstanding Balance）

Outbreak of Covid-19 ≪Dec 2019≫（¥100mn)

48.4%

50.0%
48.0%
46.0%
44.0%

14,467

14,63916,332

16,087

42.0%
40.0%
38.0%

3/20193/20203/2021

3/2022※ SMEs (ex. local public entities)＋ self-employed company owner■No. of Customers by District（No. of customers)

28,57728,9163/20193/20203/2022

Change from3/2019Manufacturing

7,039

7,281

7,782

+743(+10.5%)

Agriculture/Forestry

231

212

246

+15(+6.4%)

Fishery64

11▲63(▲98.4%)

Mining/Quarrying/
Gravel collecting

93

53

199

+106(+113.9%)

Construction

975

1,001

1,347

+372(+38.1%)

Electricity/Gas/
Heat supply/Water

422

458

547

+125(+29.6%)

Information &telecommunications

360

308

507

+147(+40.8%)

Transportation

1,989

1,706

1,644

▲345(▲17.3%)

Wholesale/Retail

6,204

6,347

6,811

+607(+9.7%)

Finance/Insurance

3,620

3,776

3,678

+58(+1.6%)（¥100mn）

26,952
3,520

27,606
3,635

3,649

3,646

Real estate/Rental &leasing

6,847

7,120

7,415

+568(+8.2%)

23,432InsideNagano23,971

24,92825,270

Other services

2,966

3,207

3,142

+176(+5.9%)

3/20193/20203/2021

3/2022

Local public entity

7,255

7,059

6,672

▲583(▲8.0%)

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

OutsideNaganoTHE HACHIJUNI BANK,LTD. The49th Information Meeting１．Outlines of FY2021 Financial Results

Main Figures (Personal Loans)

10Personal loans increased by ¥63.8bn from FY2020, hitting new record high.



Housing-related loans increased by ¥67.6bn due to the increase in loans for newly-build houses,
hitting new record high.

■ Personal Loans（¥100mn）(Outstanding Balance)

Other loans

Housingrelatedloans

12,142795

11,347

12,481
785

11,695

12,700704

11,996

13,339667■ New Increase in Housing-Related Loans（¥100mn）
New increase

12,6723/20193/20203/2021

3/2022

1,228

1,194

1,127

1,617

556

Floating rate
(ratio)（45.2％）

10-year fixedrate（ratio）（50.8％）

625

672（56.2％）

497（41.6％）

723（64.1％）

382（33.8％）

1,227（75.8％）

354（21.8％）For reference︓Migration/Settlement Loans
3/20193/20203/2021

3/2022※ Housing-related loans did not include apartment loans.

■ Apartment Loans, Other Loans(Outstanding Balance)
1,914

1,903

Others502

Card loans
Apartment
loans（¥100mn）

1,803

1,764

501

446

422

293

284

258

245

1,119

1,118

1,099

1,097

3/20193/20203/2021

3/2022※ Above figures excluded loans for corporate customers.
THE HACHIJUNI BANK,LTD. The49th Information Meeting

New increase

32.9

18.6

26.7

36.6

■ Unsecured Loans "WEB Contracts"（New increase from 10/2021~ 3/2022）
693 cases¥640mn（83.1％）（80.1％）

1,300 cases¥2,340mn（85.3％）（83.8％）

94 cases¥190mnWEB contract ratio（55.3％）（53.1％）

Education card loan

383 cases¥1,180mn

WEB contract ratio（88.5％）（88.4％）

Free loan
WEB contract ratio

Car loan
WEB contract ratio

Renovation/Exterior loan

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

Profit on Fees & Commissions（Non-Consolidated）


11Profit on fees & commissions was ¥9.9bn (+¥0.7bn from FY2020) due to increases in consulting-related incomeof corporate banking and personal banking.
3/2020Full
Year

3/2021Full
Year

3/2022Full
Year

3/2023
Plan

Profit on f&c

84

92

99

102

Fees &
commissions

180

175

178

180

Deposit/loanbusiness

76

74

80

―

Exchange business

60

59

55

―

Securities-related
business

21

21

22

―

（¥100mn）〈 Major items〉

Agency business

11

8

9

―

96

82

78

78

Fees related to
payment loans

69

57

57

―

Exchange business

11

11

9

―

〉
〈 Major items

Fees & commissions
payment（Note) The classification of dividends on group credit life insurance was changed fromother income to the decrease in fees & commissions payment in this period.
The above figures of 3/2021 were also revised reflecting this change.
THE HACHIJUNI BANK,LTD. The49th Information Meeting◆ Corporate Banking（¥1mn）
2,163
Syndicatedloans, private
placement bonds

1,316

2,636

2,122

2,052

1,319

1,098

1,281

549

Derivatives
related

227

106

284

M&A related

618

694

670

806

3/20193/20203/2021

3/2022◆ Personal Banking（¥1mn）
3,340

Public bonds

827Life & non-life
insurance

20

2,759
907

Investment
trusts

1,142

Financial instrumentsintermediary (FII)

470

Foreign currency
deposits

881

2,308

2,480
43

581
1,149
369
310

3/201924

3/2020

637

1,074

1,358

485

355

124

3/202129

101

3/2022※ Incomes from consulting business in each segment were expressed by the above figures.
※ Incomes other than “fees & commissions” were also included in these figures.

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

Profit on Fees & Commissions（Personal Banking/Investment Type Related）

12



Outstanding balance (market price) of investment type products in personal banking increased by ¥24.5bn
from FY2020 due to the steady increase of sales, reflecting stable market conditions.



Income from investment type products decreased by ¥1.0bn due to the sluggish growth in sales of Hachijuni
Securities Co., Ltd.

■ Income from Investment Type Products■ Investment Type Products（Outstanding Balance）

Foreign currency
deposits
FII

5,533
156

Public bonds

551

Investment
trusts

1,545

Life
insurance

3,071

210

147

165
124

443

505

148

81

61.7

60.3

3,084

Structured
bonds

15.3

Trust fees

2.6

Sales ofinvestment
trusts3.0

Stocks

27.1
HSC

28.3

7.3

18.6

2.8
3.7

3/20203/2021

HSC

32.7

HSC
15.9

3.2

46.1

3.9

3.7

3.6

12.0

9.9

Bank

Bank

Bank

33.4

27.5

23.0

24.8

3/20193/20203/2021

3/20227.5

3/2019

58.3

1,791

3,046

2,985

69.2

76

542

1,599

1,337

（¥100mn）

5,641

5,396

5,036

(Bank + HSC) ※after deduction of the Bank’s intermediary fee（¥100mn)

HSC

33.5

3/2022◆ Installment-type Investment Trusts (IIT)
3/20193/20203/2021

3/2022

No. of IIT accounts

25,67632,78740,701

48,78551,000Tsumitate NISA

5,460

10,27816,54923,13225,000Monthly installments

480

907

1,170

1,478

1,678

(¥1mn)THE HACHIJUNI BANK,LTD. The49th Information Meeting

3/2023（Plan）

Bank
銀行単体

投信積⽴

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

Profit/Losses Related to Securities (Non-Consolidated)

13

Profit/losses related to securities was ¥4.1bn (▲¥4.6bn from FY2020).



Net P/L including gains/losses on money held in trust was ¥4.7bn (▲¥3.3bn).

■Average Balance of Securities■P/L Related to Securities（¥100mn)

Stock＋Bond︓108

Gains/losses onmoney held in trust

Gains/losses
related to17
stocks67

Securing profits throughflexible trading ofderivatives, etc.

88

23,392Others

JGBs

G/L related
to bonds

64
90

90
66

NET

NET

50

66
G/L on money
held in trust

▲ 23

5

24

NET
81

19

▲7

▲ 41
▲ 16

3/20193/2020THE HACHIJUNI BANK,LTD. The49th Information Meeting

3/2022

16,95916,412

10,046

9,407

10,981

10,1243/20193/20203/2021

3/20223/20193/20203/2021

3/2022

2,355

2,276

3,900

3,915

2,266

2,215

3,800

3,405

Bonds

440

224

120

▲55

Others

136

148

171

▲32

Total

2,932

2,649

4,193

3,826

▲137

▲276

55

257

2,795

2,373

4,248

4,083

StocksNET
47

Cross-holding stocks

Valuation G/L on interest
rate swap with hedge

3/2021

16,921

13,346（¥100mn)

21

50

27,084■Valuation Gains/Losses on Securities

41

81

25,820（¥100mn)

27,902Net

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

The Change in Outstanding Balance of Securities（Cost basis, ¥100mn）

9/20209/2021

3/2022

Change from
9/2021

Valuation G/L

Direction

Bonds

JGBs

10,388

11,71810,366

8,275▲2,091▲50→

Other domestic bonds

7,016

7,105

6,836

7,121

285

▲6

→

Yen-denominated securitized
products

681

716

747

746

▲0

2

→

Structured bonds, beneficial
interests etc.

940

1,153

1,201

1,113

▲88

0

→

79

81

80

68

▲11

▲0

→

1,143

1,157

1,193

1,163

▲29

3,915

→

Domestic ETF

87

120

109

61

▲48

2

→

J-REIT

263

289

329

309

▲19

73

→

Other investment trusts

2,217

2,189

2,080

1,526

▲553

▲17

→

Union-type of funds etc.

216

221

225

253

28

0

↑

Hedge funds

184

169

170

160

▲10

0

↑

Hedge funds

46

48

49

75

26

10

↑

Yen-denominated foreign bonds

623

642

657

695

37

1

→

Foreign stocks, ETF etc.

138

235

312

335

22

16

→

2,828

3,217

2,911

2,679

▲232

▲104

→

604

668

563

472

▲90

▲23

→

0

0

0

0

0

0

→

Total

27,37929,65627,75324,990▲2,763

3,826

Bond duration (years)

3.60

4.27

4.28

3.09

▲1.20

CLO
Stocks3/2021

14

Domestic stocks

Yen-denominatedinvestment trusts
Foreign securities

Foreign currency-denominated bonds
Foreign currency-denominatedsecuritized products
Foreign currencydenominated CLO※ The above figures were based on ALM accounting, so they were different from the figures on Financial Statements.
THE HACHIJUNI BANK,LTD. The49th Information Meeting

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

General & Administrative Expenses (Non-Consolidated)15

Personnel expenses was ¥26.1bn (▲¥1.0bn from FY2020), non personnel expenses was ¥21.2bn（▲¥0.4bn).

Main factors of the decrease in personnel expenses were the change of the staff composition and a decreasein expenses of retirement benefits.

■G&A Expenses
537
Tax

32

223
Non
personnel
expenses

523
35

216

（¥100mn)

508
33

212

■Depreciation and Investment Amounts
3/2021

3/20233/2022（Full year plan）

532（¥100mn）

36

Depreciation

37

34

36

Investment
amounts（Initial plan︓39）（Initial plan︓40）（Initial plan︓47）*Reconstruction of
branches*Renewal ofcentralized clericalsystems*Renewal of PC/ATM*Reconstruction of
branches/welfare
facilities*Wallet＋connecting
basis*Renewal of
ATM/adding
functions

225
Main
investments

33

43

ー

*Systems related
investment*Reconstruction of
branches*Rationalization ofloan business*Renewal of ATM◆ 3/2022 Increase/Decrease Factors
Personnel
expenses

281

3/2020271

3/2021261

3/2022◆ 3/2023 Plan

271

3/2023(Plan)・ Personnel expenses:＋¥1.0 from 3/2022
・ Non personnel expenses: ＋¥1.3bn from 3/2022
THE HACHIJUNI BANK,LTD. The49th Information Meeting(¥100mn)

3/2021

3/2022Main factors

ChangePersonnel
expenses

271

261

▲10

・Change of the staff
composition
・Decrease in expenses ofretirement benefitsNonpersonnel
expenses

216

212

▲4

・Decreases in depreciationand maintenance costs

Tax

35

33

▲1

―

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

Credit Related Expenses (Non-Consolidated)

16

Credit related expenses was ¥1.9bn (▲¥6.7bn from FY2020) due to the decrease in downgrades of large
borrowers despite worsening business results in some sectors reflecting the prolonged COVID-19 impact.

■ Credit Related Expenses◆No. of Upgrade/Downgrade
3/20233/2022（forecasts）

Transfer to generalreserve for possibleloans losses (TGR)

9

5

▲19

4

Disposal of NPL

▲3

82

39

24

Credit related
expenses (CRE)

6

86

19

29

※ Large Borrowers︓More than ±¥1.0bn impact by 1 borrower（¥100mn）

44
FLB
44

Disposalof NPL

39

5

Disposal ofNPL
3/20203/2021

TGR

不良債権
処理額
CRE︓29FLB
11Disposalof NPL

244▲ 19
3/2022

THE HACHIJUNI BANK,LTD. The49th Information Meeting

3/2023(forecasts)

323
9/2020

138

235

263

3/20219/2021135
133

3/2022【Disposal of NPL (Specific reserve)】“In danger of bankruptcy”
or lower to “Normal” or“Need attention”

39

24
38

65

26
“Normal” or “Needattention” to “In dangerof bankruptcy” or lower

3/202028
9/2020“Bankrupt/De facto bankrupt” to“In danger of bankruptcy”

20

15

20

26

53

47

13

20

“In danger of bankruptcy” to“Bankrupt/De facto bankrupt”

3/20219/2021

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

16
19
57

Downgrade▲30“Normal” to “Need attention”,
downgrade in “Needattention” category

79

Upgrade

9

FLB

148

29

CRE︓19

82

CRE︓6

70

57

14

Disposalof NPLTGR“Need attention” to “Normal”, upgrade in“Need attention” category

3/2020◆Factors of Large Borrowers (FLB)
CRE︓86【General reserve】

Downgrade

3/2021

Upgrade3/2020（¥100mn）

31
3/2022All Rights Reserved.

１．Outlines of FY2021 Financial Results

Major Accounts (Non-Performing Loans, Reserve for Loan Losses)■Non-Performing Loans
NPL ratio

1.41%

1200

1.41%

761

782

101

75

800

492

400

1,061

1,011

61

116

387

311

352

1.60%

1.40%

Generalreserve

181

Specific
reserve

169

196

177

191

1.00%

777

639

475

0.80%

0.60%

119

190

174

3/2021

3/20220.40%

3/2019200

Substandard
assets

351

1.20%

600

Doubtful
assets（¥100mn)

2.00%

1.80%

1000

Bankrupt andquasi-bankrupt
assets

1.74%

1.78%

1400

■Reserve for Loan Losses（¥100mn）※ Loans based on the Financial Revitalization Law

17

167

254

231

221

3/20193/20203/2021

3/2022

181

191

196

177

Normal

64

65

64

65

（¥100mn）

0.00%

03/20193/20203/2021

3/2022

3/2020

0.20%

General reserve3/20193/20203/2021

3/2022Bankrupt and quasibankrupt assets

101

75

116

61

Need attention

69

67

72

67

Doubtful assets

492

475

639

777

Special attention

47

58

59

44

Substandard assets

167

231

254

221

Specific reserve

169

119

190

174

Total

761

782

1,011

1,061

NPL ratio

1.41%

1.41%

1.78%

1.74％

In danger ofbankrupt

106

77

107

154

After partial direct
charge-off（※）

1.30%

1.34%

1.64%

1.71％

Bankrupt/De facto
bankrupt

63

41

82

19

Total

351

311

387

352

（¥100mn）※ Partial direct charge-off was not executed. The above figures
were disclosed only for reference.
THE HACHIJUNI BANK,LTD. The49th Information Meeting

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

Return to Shareholders(C): Consolidated（¥100mn）

18
3/2019Annual dividends ①

3/20203/2021

3/2022

3/2023（forecasts）

69

68

68

78

93

¥14.0

¥14.0

¥14.0

¥16.0

¥20.0

Interim dividend

¥6.0

¥6.0

¥6.0

¥6.0

¥10.0

Purchase of own stocks ②

28

29

―

―

100

Shareholder return ③＝①＋②

98

98

68

78

193

Profit (C) ④

224

220

223

266

230

Dividend payout ratio (C) ①÷④

30.9%

31.1%

30.6%

29.3%

40.8％

Ratio of shareholder return (C) ③÷④

43.7%

44.7％

30.6％

29.3％

84.3％

Dividend per share (full year)

Topics ①【Release on Apr 28, 2022】 Notice regarding purchase and cancellation of own stocks

１. Purchase of own stocks

２. Cancellation of own stocks

Type of stocks

Common stocks

Type of stocks

Common stocks

Total number of stocks

Up to 20,000,000

Total number of stocks

Up to 20,000,000

Total amount of purchase

Up to ¥10,000mn

Scheduled date

May 20, 2022

Scheduled period

May 2, 2022 ~ Mar 31, 2023

The method of purchaseMarket purchase, including Off-Auction
Own Share Repurchase Trading

Topics ②【Release on Apr 28, 2022】 Adding dividend target to Medium-Term Management Targets

Profit attributable to owners of
the parent

Ratio of consolidated profits toparent company’s profits【New!】 Consolidated

Greenhouse gas emissions

FY2025: ¥25 billion or more

FY2025: 1.25 times or more

FY2022 〜 FY2025:
40% or higher, annually

FY2023: Net zero
FY2030: 60% reduction compared to FY2013

THE HACHIJUNI BANK,LTD. The49th Information Meeting

dividend payout ratio

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

Outline of the Group Companies

19 Establishment of new subsidiaries in Oct 2021: Hachijuni Asset Management Co., Ltd, andHachijuni Investment Co., Ltd.
Business started in Apr 2022

Business started in Jan 2022

Consolidated subsidiaries

Hachijuni Asset Management Co., Ltd.

Hachijuni Investment Co., Ltd.

Discretionary investment business
Investment advisory business, etc.

Establishing funds
Fund management business, etc.

Nurturing financial market experts
Prospects for developing distinctive investment
products in the future

Supporting the revival of sightseeing spots, business
revitalization & successions of customers, renewableenergy business

Hachijuni Securities Co., Ltd

Hachijuni Capital Co., Ltd.

Trading of securities etc.

Investment business

Hachijuni Card Co., Ltd.

【 11 companies 】

Credit card business

Hachijuni System Development
Co., Ltd.

The Hachijuni Bank Group

Development of computer systems

Hachijuni Credit Guarantee
Co., Ltd.
Credit guarantee services

Hachijuni Staff Service Co., Ltd.
Dispatching workers/employment
placement

Hachijuni Lease Co., Ltd.

Hachijuni Auto Lease Co., Ltd.

Yamabiko Services Co., Ltd.

Leasing

Leasing

Credit collection and management

Affiliatedorganizations

The General Incorporated Foundation

The Public Interest Incorporated Foundation

Research & study/management consultations/training businessResearch & study relating to regional culture

Nagano Economic Research InstituteTHE HACHIJUNI BANK,LTD. The49th Information Meeting

Hachijuni Culture Foundation

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

１．Outlines of FY2021 Financial Results

Financial Results of Group Companies
Company name

Investment
ratio(the Bank +subsidiaries)

Hachijuni Securities Co.,Ltd.

3/202120(¥1mn)

3/2022(¥1mn)

Factors

Ordinary
profitNet profit

Ordinary
profitNet profit

100.0％

2,116

1,455

912

655

Slower growth in sales of stocks etc.
reflecting sluggish market

Hachijuni Lease Co., Ltd.

100.0％

480

346

1,046

725

A decrease in lease income, a decrease incredit related expenses

Hachijuni Card Co., Ltd.

100.0％

147

65

244

158

An increase in settlement services amounts, adecrease in personnel expenses

Hachijuni Credit
Guarantee Co., Ltd.

100.0％

2,289

1,508

2,718

1,790

An increase in guarantee charge income, adecrease in credit related expenses

Hachijuni System
Development Co., Ltd.

63.7％

111

63

202

141

A decrease in outsourcing fees, a decrease indepreciation

Hachijuni Capital Co., Ltd.

41.0％

263

218

171

129

A decrease in sales of investment securities

Hachijuni Staff Service
Co., Ltd.

100.0％

12

7

22

14

An increase in subsidies for human resource
matching business, a decrease in income of
employment placement

Yamabiko Services Co.,
Ltd.

99.0％

152

100

163

96

An increase in collection of claims, an increasein credit related expenses

Hachijuni Auto Lease Co.,Ltd.

100.0％

647

424

807

531

An increase in auto lease income, a decreasein credit related expenses

Hachijuni AssetManagement Co., Ltd.

100.0％

Since Oct 2021

▲38

▲27

No operating income, only expenses, as thecompany has not yet started operations.

Hachijuni Investment Co.,Ltd

100.0％

Since Oct 2021

14

9

Ratio of consolidated profits to parent
company’s profits (times)
THE HACHIJUNI BANK,LTD. The49th Information Meeting

1.208

Management fees from new funds

1.190
Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

２． Management Policy

Medium-Term Management Targets

21

Medium-Term Management Targets

FY2021 results

Profit attributable to ownersof the parent

FY2025: ¥25.0bn or more

¥26.6bn

Ratio of consolidated profits
to parent company’s profits

FY2025: 1.25 times or more

1.190 times

Consolidated dividend
payout ratio

FY2022 ~ FY2025:
40% or higher, annually

New target

Greenhouse gas (CO2)emissions

FY2023: Net zero
FY2030: 60% reduction
compared to FY2013

39.7%
reduction

THE HACHIJUNI BANK,LTD. The49th Information Meeting

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

２． Management Policy

Medium-Term Management Vision 2021

22

Supporting Customers and the Region by"Finance × Non-finance × Relations"Sustainability as a core elementof business management

Contributing to overcome regional
issues by cooperating with public
sectors, corporations, and people

Supporting customers’ life
as a lifetime-transaction bankReinforcement of consulting
functions by Financial Advisors
Expansion of non-face-to-facetransactions, trust-related
services

Supporting sustainable
development of regional
communities by creating
regional vitalities

Deepening life support
business

Providing comprehensive
financial services
and functions

One-stop support forcorporate management
Improvement of theskills of staff
Expansion of non-faceto-face functions

Increasing business efficiency,
developing new services
Increasing businessefficiency across the groupthrough DX

Upgrading consulting
service menu and thegroup functions
Digital reform of business
operations andorganization

Advancement of businesses byutilizing data
Development of new services

THE HACHIJUNI BANK,LTD. The49th Information Meeting

Personnel system
reform to support
growth and job
satisfaction

Supporting the growth ofeach staff
Strengthening relationships
with customers by consulting
or solving problems
Personnel system reformreflecting diverse values andlifestyles

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

２． Management Policy

Medium-Term Management Vision 2021 Initiatives

23

Theme① Sustainability as a Core Element of Business Management
Toward the Achievement of Greenhouse Gas (CO2) Emissions Reduction Targets
Target① FY2023: Net zero

TargetscopesScope １︓ Heavy oil, kerosene, city gas, LP gas, gasoline ⇒ CO2 emissions generated by the Bank itself
Scope ２︓ Electricity ⇒ CO2 emissions considered to be emitted from electricity use

Type ofmeasuresBasic
scenario／ ② FY2030: 60% reduction compared to FY2013

１ Capital investment : Energy-saving equipment, solar panel installation, etc.
２ External procurement︓ Purchase of CO2-free electricity and J-credits
Scope 1

◆ Conversion of heat source (kerosene or gas) to electricity when updating air conditioning
and kitchen equipment

Scope ２◆ Three Head Office buildings, which account for about 40% of total CO2 emissions, switchedto CO2-free electricity◆ Switching to LED lighting in the Operation Center building and Head Office Annex

Image of CO2 emission reduction based on "Basic scenario"
14,633

Scope
１

Scope
２
1

3,004

FY2022〜

3 HO buildings
CO2-free electricity

8,813

11,629

2,486
6,326

FY2013①

FY2021（Preliminary）

THE HACHIJUNI BANK,LTD. The49th Information Meeting（Unit:ｔ-CO2）

FY2023〜
Net zero

FY2030② 60% reduction

・ Conversion to electric air conditioning
・ ZEB conversion of new offices
・ Offsetting by J-credits, etc.

6,550

6,400

2,650

2,600

3,900

3,800

FY2022

FY2023compared to FY2013

FY2024

Switching to
LED lighting

5,200

5,000

5,000

2,600

2,600

2,600

2,600

2,400

2,400

FY2024FY2025

FY2030

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

２． Management Policy

Medium-Term Management Vision 2021 Initiatives

24

Theme① Sustainability as a Core Element of Business Management

Toward the Achievement of Sustainable FinanceTargetTarget area

FY2021 ~ FY2030 (10 years)

Sustainable Finance : Total ¥1.5tn（for environment︓¥1tn）

Investment and lending for environment, medical care, welfare, education, establishment of businesses, business successions

Characteristics

New dedicated products in FY2021
Jul 2021〜

Sustainability Link Loan (SLL)Interest rates and other loan terms fluctuate depending on the achievement of ambitious
sustainability challenge targets consistent with international principles.

Jan 2022〜

Hachijuni Sustainability No.1
fund

Providing financial support for renewable energy projects and decarbonization, as well as
for companies that are creating new businesses and technologies, and for companies
facing business succession issues such as the absence of successors

SDGs loan

Interest rates fluctuate according to the achievement of goals related to the SDGs set bycustomers themselves.

Positive Impact Finance (PIF)

The Bank and the Nagano Economic Research Institute analyze the environmental, social,and economic impact of our customers and help them increase and reduce the identified
impact.

Feb 2022〜≪FY2021 results≫ (Preliminary)

Execution of Sustainable Finance︓¥167.4bn（for environment︓¥63.0bn）

Supporting local SDG efforts
90th Anniversarycommemorative
eventsNew
products

Presentation of rice fromterraced rice paddies

Donation of rice harvested through volunteer activities to "NPO Hotline
Shinshu"

Local culture promotion

Subsidizing the activities of 14 organizations (15 projects) engaged in local
cultural inheritance activities

Smile bondDonation of a portion of the Bank's profits to "Food Bank Shinshu", acertified NPO

SDGs foreign currency
time deposit

Donation of a portion of the Bank’s profits to Nagano Children's Hospital

THE HACHIJUNI BANK,LTD. The49th Information Meeting

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

２． Management Policy

Medium-Term Management Vision 2021 Initiatives

25

Theme② Deepening Life Support Business

Enhancement of Inheritance-Related Products and Services
Start of trust services for individuals (testamentary substitute money trusts, testamentary trusts, and estate arrangement
services) with the Bank as trustee to meet the "asset management needs" of our elderly customers and the "inheritanceand asset transfer needs" to the next generation
Products and Services

Oct 2021〜

Apr 2022〜
Expansionof products

Trustservices forindividuals

Real estatesmall-lotproducts

Characteristics≪FY2021 results≫

Relay of hearts

Jointly managed designated money trust with a special clause (with a
special clause for testamentary substitute and bequest and donation)

31 casesLongevity and peaceof mind

Jointly managed designated money trust with a special clause (with a
special clause for beneficiary's agent)

12 cases

testamentary trusts

The Bank provides comprehensive support for the preparation,safekeeping of notarized wills and execution of wills.

18 cases

Estate arrangement
services

The Bank handle complicated inheritance procedures such as
cancellation and redemption of deposits and savings, and namechange of real estate on behalf of the heirs when an inheritance occurs.

２ cases

Trust beneficiary righttype
Voluntary partnership
type

These products are expected to simultaneously realize"inheritance measures" and "stable cash flow" through rental
income by utilizing real estate.

Income:¥21mn

146 cases
Income: ¥26mn
Apr 2022~

Hachijuni Life Support Services 【Jul 2021~】
Expansion of non-financial services to solve the "problems" of elderly customers
Nov 2021〜
All offices
startedJul 2021〜

Life Support Services

Introducing our partner companies that can solve "problems"in customers’ daily life, such as garden pruning, housekeeping,etc.

≪FY2021 results≫

Real estate agent
introduction services

Responding to a variety of real estate transaction needs,
including the need to dispose of underutilized real estate fromheirs, etc.

≪FY2021 results≫

THE HACHIJUNI BANK,LTD. The49th Information Meeting

376 cases
24 cases

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

２． Management Policy

Medium-Term Management Vision 2021 Initiatives

26

Theme③ Providing Comprehensive Financial Services and Functions

Business Strategy Development Support 【Business Restructuring Subsidy】
Supporting business growth and businessrestructuring by using subsidies such as"Monozukuri subsidy" and "Businessrestructuring subsidy"
The Bank will support the development ofbusiness strategies for the age of With-corona.

This is one of the best results in the nation.
"Business Restructuring Subsidy" Adoption Results (cases)
1st period

2nd

3rd

4th

Total

68

46

69

76

259

Of which fee-charging support : 143 cases (profit: ¥317mn)

Support for Startups and New Businesses 【General Incorporated Association Nagano Innovation Base】
Participation to Nagano Innovation Base, a general incorporated
association established in July 2021 to support entrepreneurs who are
motivated to create new businesses and grow their businesses in Nagano
The Bank provides a wide range of support to customers who wish tostart or establish new businesses.

≪FY2021年 results≫

Support for startups
and new businesses : 282 customers※ Achievements of the Bank's own activities

Enhancing Group Functions
Strengthening ourcomprehensive financial services
Providing a wide range ofconsulting services related tocorporate management byintegrating whole power of theHachijuni Bank GroupFY2021
results

Enhancing
functions

Establishmentof new
subsidiaries

Hachijuni Staff Service Co., Ltd.

Strengthening dispatch of high-level
human resources

Hachijuni Card Co., Ltd.

Start of JCB brand handling

Hachijuni Asset Management
Co., Ltd.

Making financial services moresophisticatedHachijuni Investment Co., Ltd.

Supporting business growth throughboth investment and lending

Nagano Economic Research Institute ≪Personnel consulting≫Hachijuni System Development Co., Ltd. ≪IT consulting≫

THE HACHIJUNI BANK,LTD. The49th Information Meeting

17 cases ／ Income ¥7mn
6 cases ／ Income ¥2mn

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

２． Management Policy

Medium-Term Management Vision 2021 Initiatives

27

Theme④ Digital Reform of Business Operations and Organization【Precedence introduction at some offices】 Electronic Contracting Service
Precedence introduction of electronic contracting service at 8 offices to promote digitalization of loan
operations and to enhance customer convenience
Electronic Contracting Service
Electronic Contracting Service

Overdraft Borrowing Request Service

Loan procedures can be completed on the web using electronic
signatures

Application procedures of overdraft loans can be completed on theweb

For corporations, self-employed company owners︓Loan transactions
as specified by the Bank

Overdraft loan application ／ Checking transaction status etc.

For individuals︓Housing loans, large-amount free loans【Started trial at some offices】

Visit Reservation System

Started a trial "Visit Reservation System" at 9 offices, where customers
can reserve the purpose and date of their visit via our website.
Aiming to improve customer convenience and equalize operations throughsmooth procedures【Scheduled to be introduced this summer】"Wallet+" Smartphone App.

Jointly developing the smartphone application "Wallet+" operated by iBank
Marketing Corporation, a subsidiary of Fukuoka Financial Group, Inc. (to be
introduced this summer)
The Bank will provide new financial services (Fin Tech) and non-financial
services (Marketing) that have never been offered before.
THE HACHIJUNI BANK,LTD. The49th Information Meeting

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

２． Management Policy

Medium-Term Management Vision 2021 Initiatives

28

Theme④ Digital Reform of Business Operations and Organization

Sales Model Using DWH (Data Warehouse)
DWH (Data Warehouse)
In April 2019, the Bank built a data
warehouse, an information system capableof centrally managing large amounts of dataover a long period of time.
Data relating to customers’ transaction
status and transaction history will be used
to develop effective sales strategies.

Distributed systems

Host computer

Data
Accounting
systems

Information
systems

Data

DWH
Reconstructing
Private cloud ※※Judan-kai cloudBusiness Reform Through ≪ DWH × AI ≫Currently
being carriedoutMarketing

Scheduled to
be introduced
this summer

Forecasts ofbusiness conditions
changeScheduled to
be introduced
this autumn

Online lending

THE HACHIJUNI BANK,LTD. The49th Information Meeting

Detecting customers who are likely to sign a contract (Examples of use:
"installment-type investment trusts", "debit cards", etc.)
A model is built with data held by the Bank. Capable of identifying signs of
performance deterioration from approximately 6 months in advance.
By utilizing the "awareness" detected by AI, sales staff can follow up with businesscustomers at the appropriate timing.
A model is built with data held by the Bank. Loan execution is completed without
face-to-face meetings. Available for customers who have no loan transactions.

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

２． Management Policy

Medium-Term Management Vision 2021 Initiatives

29

Theme⑤ Personnel System Reform to Support Growth and Job Satisfaction
Multiple-Track Personnel System (New Professional Course / Abolished Sales Operations Course)
To respond to the increasing sophistication and diversity of work, the Bank haverevised the personnel system to allow each employee to choose a course thatsuits his or her aptitude and work style by abolishing the sales operation courseand establishing a new professional course, etc., which aims to strengthen
professionalism.

Human Resource Development
The Bank have launched a new training program for IT coordinators, and a new circle for acquiring FP 1st
grade and CFP qualifications, to encourage employees to voluntarily develop their skills.
No. of employeeswith qualification
as of the end of
FY2021

Small and Medium sizedEnterprise Consultant

FP 1st grade

Securities analyst

TOEIC（850 points or higher)

53

71

51

41

Support for Taking Childcare Leave
Diversity Promotion Office promotes the maintenance of motivation and positive
future career development after returning to the workplace through individualinterviews and support training for employees who are scheduled to takechildcare leave.

TargetGeneral Business Owner's Action Plan for the Law for the Promotion of Women's Activity (Phase 3)(The plan period: Oct 1st, 2021〜Sep 30, 2026)

Target ２︓ Achieving 100% of male employees who take childcare leave

Percentage of male employees
taking childcare leave
THE HACHIJUNI BANK,LTD. The49th Information Meeting

FY2018FY2019FY2020

FY2021

28.8％

31.9％

35.9％

60.3％

Copyright （C） 2022 THE HACHIJUNI BANK,LTD.

All Rights Reserved.