2020 Annual Report

Safeguarding your aspirations;connecting them with reality

Message from management
First, I would like to express my gratitude to you
all for your support.
My name is Hisanobu Watanabe, and I wasrecently appointed as President.
While I feel the heavy responsibilities of theposition of President, we will continue todiligently strive to become the region’s No. 1urban-type regional financial group which is truly
favored by our customers in the Tokyo
metropolitan area so that we may develop
together with everyone in the local community
who support us with their patronage on a daily
basis.
I humbly request your continued guidance andencouragement.
I would like to express my heartfelt sympathies
for everyone in Japan who has been affected by
the spread of COVID-19 since the beginning of
this year. Because this state of emergency has
occurred, we strongly recognize that being ofservice to everyone in the local community is thereason for our existence as a financial institution,
and we have carried out our social mission inthis regard. Specifically, in addition to the“emergency lending program”which we started
offering in February, we responded to the needsof customers from March, and established the“COVID-19 Kiraboshi Fund”with an examination
period of three business days or less as a matterof principle. Furthermore, we set up “loanconsultation desks”and“holiday consultation
desks”and coordinated with the Japan FinanceCorporation, etc. to prepare a consultation
system for everyone in the local community.

Amid these circumstances, Kiraboshi Bank, Ltd.,
which was founded in May 2018, completed its
system integration in May of this year. Although
there were temporary service outages andchanges to the products, etc. during the
integration period, which created a significant
inconvenience for our customers, we are now
able to provide the same level of service at all
branches.
Through this integration we have created a true
single bank which will be able to further display
the integrated synergy effects which utilize themerged strengths, and going forward we willfurther accelerate initiatives directed at
improving customer convenience.
Moreover, the current fiscal year will be the final
fiscal year of the“Start-up ☆ Kiraboshi”Mediumterm Business Plan. This plan designates the goalof becoming“a comprehensive service businessthat is also strong in finance”as the future image
to aim for, and we shall continue to strive toenhance the Group’s collective strength to meetthe various needs of our customers.
In addition, to further implement activities which
are consistent with a customer orientation, we
will take care to provide proposals according tocustomer needs under“Kiraboshi Life Design
Securities Co., Ltd.”which will start in August of
this year and enhance the higher quality
enrichment of consulting functions.
Going forward, our goal is to become a Group
which contributes to local development andsatisfies our customers. On behalf of the Group, I
appreciate your support and encouragement.
July 2020

Tokyo Kiraboshi Financial Group
Head officeBusiness name: Tokyo Kiraboshi Financial Group, Inc.

President, Tokyo Kiraboshi Financial Group, Inc.
President, Kiraboshi Bank, Ltd.

1

October 1, 2014

Exchangelisting

Tokyo Stock Exchange, First Section(Securities Code: 7173)

Capital¥27.5 billion

Websitehttps://www.tokyo-kiraboshifg.co.jp(As of June 30, 2020)

Established on
May 1, 2018

- Tokyo Kiraboshi Lease, Inc. - Kiraboshi JCB Co., Ltd.
- Kiraboshi System, Inc. - Kiraboshi Capital Co., Ltd.
- Kiraboshi Consulting Co., Ltd. - Kiraboshi‌Life Design Securities Co., Ltd.
(Scheduled to start operation in August 2020)

from mergerof 3 banks

Groupcompanies

Kiraboshi Service Co., Ltd.
Kiraboshi Credit Guarantee Co., Ltd.
Yachiyo Credit Guarantee Co., Ltd.
Kiraboshi Business Service Co., Ltd.
Kiraboshi Credit Service Co., Ltd.
Kiraboshi Business Consulting Shanghai Co., Ltd
Kiraboshi Tech, Inc.
KIRABOSHI BUSINESS CONSULTING VIETNAM Co., Ltd.

◦Relocation of head office
The Company relocated its head office on June 26, 2020 from Shinjuku in Shinjuku-ku (Shinjuku office) to
Minami Aoyama in Minato-ku (Kiraboshi Bank Aoyama head office).

Management philosophy

To be a financial group for small and medium-sized enterprise customers and individual
customers in the Tokyo metropolitan area that will contribute to the development oflocal communities through comprehensive financial services.

Management policy
Achieve enduring existence as a local regional bank through the provisionof unique financial services

A bank thatsparklesLeverage the special features of the Tokyo area to continue to meet new challenges
in order to contribute to the development of our customers and of local economies

A bank that rises
to the challenge

We put great value on the“ideas”of customers, the region, and our
employees so as to become a necessary and always trusted presence

A bank that brings
together ideas

Contents

Hisanobu Watanabe

3-10-43 Minami Aoyama, Minato-ku, Tokyo

EstablishedMessage from management 

1Tokyo Kiraboshi Financial Group 

2of diversity 

25

Message from top management 

3Digitalization / FinTech strategy 

27

Dialogue with shareholders and investors 

29

Establishing the“comprehensive service business‌Employee’s work style reform and promotionthat is also strong in finance”Group brand 

9Status of corporate governance 

30Business model 

11

Risk management system 

35

Toward sustainable development 

13Compliance system 

37

Environmental protection 

15

Corporate Data of Tokyo Kiraboshi Financial Group 

39Contributing to local communities 

17

Consolidated Financial Statements 

40

Creation of shared value with the customer 

192

Tokyo Kiraboshi Financial Group, Inc.

Message from top management

Aiming to be a comprehensive service business that is also strong

in finance, and the one to which the customer gives the first callManagement environment and opportunities

Introduction
My name is Hisanobu Watanabe, and I wasrecently appointed as President.
Based on the management philosophy of theGroup, we shall fulfill our responsibility as a local
bank group and strive to become “acomprehensive service business that is alsostrong in finance” that is endeared to ourcustomers and shareholders, so we humbly
request your further support and patronage.
I wish to express my condolences to all of those
who have lost loved ones due to the recent
COVID-19. I would also like to offer my heartfelt
sympathies to everyone who has been affected
and to those whose lifestyles have been
impacted by the spread of the infection.

Hisanobu Watanabe
President, Tokyo Kiraboshi Financial Group, Inc.
President, Kiraboshi Bank, Ltd.

3

In recent years, business succession problems
due to the lack of successors within companies
and other social problems are becoming severeas the country ages and the population
decreases.
On the one hand, the business environment in
the Tokyo area which forms the business
infrastructure of the Group continues to increase
due to the population influx, new industries areconstantly being created, and it is a massive
market with growth potential where powerfulcompanies that change social trends congregate.
The GDP of the Tokyo area exceeds ¥140 trillion
or approximately one quarter of the domestic
total, and the loan balance exceeds ¥230 trillion,
which is approximately 40% of the domestic
volume. Utilizing this market to grow in asustainable manner together with the local
community is also the task of the Group.
Moreover, the increase of COVID-19 andproblems due to climate change are also
spreading recently, and the role of a regional
financial institution is significantly growing inimportance with respect to building asustainable society.
To summarize my career, I was involved in credit
risk management and business restructuring
support for about 20 years and experienced
many different areas of banking such as thedisposal of bad loans after the bursting of theeconomic bubble and business restructuring
after the Lehman shock. One thing I can say isthat business conditions have a cycle and“nocrisis lasts forever.”In such difficult times asthese, I think that it is the social mission offinancial institutions to be of service tocompanies, particularly everyone at small andmedium-sized enterprises.
I absolutely believe that we can overcome themarket chaos due to the recent COVID-19,
business continuity, and other global crises.

Targeting sustainable growth of the local economy

Initiatives for the Medium-term Business Plan

Amid these circumstances, we formulated the“Start-up☆Kiraboshi”Medium-term Business Planin anticipation of the situation five years and ten
years from now and will strive to take on thechallenge of new business models andstreamline management under the three major
measures of “Enrichment of consulting
functions,”“Developing human resources thatare trusted and chosen for their‘dialogue’,”and“Business process re-engineering to strengthen
contact with customers.”
Moreover, we established“a business modelthat takes‘dialogue’as its starting point”with
the goal of earning the trust of customers andbecoming a“first call”bank.
Two years have passed since the Medium-term
Business Plan started, but the effects areappearing in three major areas.
The first area is“management streamlining.”The
Group’s Kiraboshi Bank, Ltd. chose to merge
three banks into one, and as a result the effects
are mainly appearing in the branch integration,systems integration, and also in the streamliningof the personnel. On the one hand, the costs
required by the merger exceeded ¥3 billion eachyear, and during excessive periods expenses ofover ¥4 billion were recorded. However, thecurrent fiscal year (FY2020) is the final year, andgoing forward the effect of the cost reductions
due to the merger will directly tie into theperformance.
The second area is “support for mainstay
operations.”Support for mainstay operations areactivities which provide information according tocustomer needs and are positioned within theGroup as a First Call exercise. First Call involves
mainstay operation support for corporates andowner-managers as well as providing life plan
support for individual customers, and thenumber of contacts is established as a KPI (7,000
per year). As a result of these activities, wevastly exceeded the targets by reaching 11,290

4Tokyo Kiraboshi Financial Group, Inc.

Message from top management

contacts in FY2018 and 14,870 contacts in
FY2019. Moreover, the first call exercise is tied
to continuous and stable revenue and is steadily
showing results by reaching ¥2.1 billion in
FY2018 and ¥4.4 billion in FY2019 with a focus
on fee and commission income from corporate
customers.
The third area is “group strategy.” Theenhancement of the overall group capability isessential to resolve the wide range of issues
from customers. Therefore, we established aconsulting company, FinTech company, and acapital company. In addition, we are poised toopen a securities company in August of this year,
which will largely complete the Groupdevelopment. Going forward, we will become asingle group, meet the needs of our customers,
and grow together with our customers.
As a result of these efforts, in FY2019 the profit(FG) was ¥7.6 billion, net core business income(BK) was ¥15.5 billion, core OHR (BK) reachedFirst Call exercise
Number of
2019/3 11,290 contacts
2020/3 14,870 contacts
contacts, proﬁt Developing into operation that can be（in ¥100 million）

expected to generate continuous proﬁt

FY in which
contracts
were signed■ FY2020■ FY2019■ FY2018

44
21

19／3

28

24

15

13

20／3

21／3 planned

77%, and the numerical targets listed in the final
fiscal year of the Medium-term Business Plan
were all achieved in the second year.
Moreover, in order to meet the needs of ourcustomers, we focused on the following
measures within the Medium-term Business Plan.
* (FG) Tokyo Kiraboshi Financial Group, Inc., (BK)
Kiraboshi Bank, Ltd.

Overseas strategy (from the Tokyo area to Southeast Asia)
For small and medium-sized enterprisecustomers, business expansion in overseas
markets, particularly the lively Southeast Asian
region, is increasing in importance, and we havebeen engaged in enhancing our overseass u p p o r t . Sp e cifical l y, r at h e r t h an s hif tingconventional manufacturing sites overseas, weare connecting Japan’s high-technology andhigh-quality services and products to Southeast
Asian companies to revitalize our customers.
Because this is difficult to accomplish only inJapan, considering issues such as businesssuccession and shifting our attention overseas
will make this possible. Therefore, in order togather information which is useful to business,
we invested in a local Singapore fund anddispatched personnel in July 2019. Moreover,during the same month we started a businessalliance with Shinhan Bank Japan, the local
Japanese subsidiary of the South Korean Shinhan
Financial Group which has 122 offices inSoutheast Asia (as of December 2019), whichsignificantly expanded the breadth of our
information gathering sites. We have also beenstrengthening the organization by establishing a
local subsidiary in Ho Chi Minh City, Vietnam in
October 2019 in addition to our consulting
subsidiary in Shanghai, China.

Support at diverse stages

Opening ceremony of subsidiary in Vietnam

5The Group has established a system which cansupport companies at diverse stages from start
up to growth and maturity phases. We have set

up two funds according to customer needs
under Kiraboshi Capital Co., Ltd., which wasestablished in September 2018. The first fund isthe“Yume Kagayaki Fund 1”which supportsbusiness succession needs. The second fund isthe“Yume Habataki Fund 1”which responds toadditional capital in preparation for IPOs. The“Yume Habataki Fund 1”formed in March 2019has executed 11 investments in about one year.
In addition, under the slogan of “making
Kiraboshi Bank the natural partner for start-ups,”
we are focusing our efforts on supporting
customers in the start-up phase and steadily
accumulating results with 5,322 start-up support
cases in the fiscal year ended March 31, 2019,
and 10,652 cases in the fiscal year ended March
31, 2020.

Customer-oriented business operations
With the advancing decline in the birth rate andaging population and the arrival of the era of
100-year lifespans, we must respond to theasset management needs of customers which
will further expand and diversify in the future.
In order to further pursue a truly customeroriented business operation, it is important toexpand the product lineup to meet customer
needs even more than before while also
increasing our expertise with respect to asset
management.
To achieve this, we plan to open a securities
subsidiary in August 2020. The goal ofestablishing the subsidiary is to provide stable
management plans based on long-term
diversified investments which are easy for theelderly to understand while also focusing onsales for the balance of assets undermanagement to establish a business model
which consists of balance management fees.
Moreover, as part of our customer-oriented
business operation, we plan to make theinvestment trust commission fees free for major
customers with the goal of improving thecustomer operational efficiency (cost return).

Digital strategy
Digitization is essential for improving customer
convenience. Digitization efforts which we wereunable to implement due to system integration
restrictions after the birth of Kiraboshi Bank can
now be gradually rolled out due to thecompletion of the system integration in May ofthis year. The“goal”that we are aiming for is anoperation which does not use seals, cash, or
paper.
Moreover, we are also focusing our efforts on
FinTech and have advanced research on digitalmoney top-up utilizing the“Maekyu service”
through the Group’s Kiraboshi Tech, Inc. We are
currently working on making it possible toprovide the digital money top-up function to
Maekyu users and the wallet function to allsalaried employees.

Human resources development
In order to promote the consulting businessbased on“dialogue”which is backed by theGroup, it is important to train talented“Kiraboshi
People”who can think and act on their own toprovide consulting. Therefore, we are
significantly revising the training program andincorporating many types of interactive training
in addition to the conventional classroom
training. In addition, there are also many nonfinancial proposals to customers, and we are
actively dispatching personnel to externalorganizations as well as hiring specialized
personnel and foreigners.
In order to sum up the Medium-term Business
Plan, we will steadily execute the KPIs listed in
the plan during the current fiscal year while also
resolutely tackling the challenge of being able tosufficiently respond to the rapid environmental
changes with a sense of urgency.

6

Tokyo Kiraboshi Financial Group, Inc.

Message from top management

Responding to COVID-19

Since the start of 2020, the severity of thebusiness and living environment has increased
with the spread of COVID-19 and the stagnationof the movement of people, items, and services,etc.
As the economic situation continues todeteriorate and a stronger demonstration of thefinancing function is required, we arestrengthening our support system for thefinancing of small and medium-sized enterprises
and the rapid deterioration of industry
conditions to rapidly and proactively provide
support through measures such as theestablishment of the emergency lending programin February 2020.
Moreover, we are extending the utmost
consideration for the health and safety of ourcustomers and employees by constructing anenvironment which will enable the continuationof operations by reducing the simultaneous riskof infection by employees engaged in the same
work at each head office and sales office basedon support for the policy of voluntarily staying
indoors.
In addition, the working styles of employees

Kiraboshi Bank, Ltd.
(Aoyama head office)7Ⓒ1976, 2020 SANRIO CO., LTD.
APPROVAL NO. L611573

have significantly changed with the recent
adoption of online meetings and teleworking
from the perspective of preventing the spread of
COVID-19.

System integration

On May 6, 2020, the integration of the two coresystems, which were used in parallel after themerger, was completed. During this process,customers were inconvenienced due to productand service changes as well as temporary
suspensions of ATMs and other services.
However, we were able to safely complete thesystem integration with the understanding andcooperation of all of our customers.
As a result of this integration, a common set ofservices can now be used at all branches of
Kiraboshi Bank.
Going forward, we will be able to more rapidly
provide highly convenient products and services
to broadly meet the needs of all customers.

GovernanceIn consideration of the fact that corporate
governance is one of the most importantmanagement issues, we are promoting thestrengthening of the Group business
management system and supervisory functions
by utilizing the knowledge of outside officers andexternal experts.
Moreover, we are striving to ensure thesoundness and appropriateness of business
operations by positioning legal compliance as
one of the most important management issues
and fostering a corporate culture whichemphasizes compliance. It was under thesecircumstances that a scandal (cashembezzlement) by a former staff member of
Kiraboshi Bank, Ltd. was discovered in June
2019. Beginning with the customers who werevictimized, we sincerely apologize for troubling
and worrying the customers that we do business
with, all of our shareholders, and the local
residents.
In addition to all of the officers and employees
deeply reflecting on how this situation occurred,establishing a“Recurrence Prevention Project
Team,”and adding attorneys and Outside Audit& Supervisory Board Members as members, weshall apply that knowledge while also
implementing drastic measures to prevent a
recurrence which includes a code of conduct forsales managers to expend the utmost effort torestore trust.
Moreover, as part of our efforts to strengthen
the cybersecurity management system, we arecarrying out exercises which cover bothcountermeasures during ordinary times andcountermeasures during an emergency. Goingforward, we plan to continue deploying newservices and business process re-engineering
which utilize the promotion of teleworking anddigital technologies, and we will strive to ensure
the safety and reliability of computer systems,
devices, and telecommunications networks fromexternal and other attacks as well as the safety
management of various types of information.
From now on, we will further advance thecreation of conditions which allow riskownership and corporate ethics to take holdand permeate the organization as a Group
which is trusted by all of our shareholders,customers, and society.

reduction through operational streamlining andproductivity improvements, and social
contribution activities directed at environmental
preservation and protection.

SDG initiatives
In May 2019, the Group announced its SDGs
under the main themes of “Environmental
protection,”“Contributing to local communities,”“Creating shared value with the customer,”“Employees’work style reform and promotion ofdiversity,”and“Dialogue with shareholders andinvestors”which we are undertaking to create asustainable society.
In particular, responding to climate change willprotect our natural capital and lead to themaintenance of ecology related services. As thesense of crisis intensifies with respect to global
warming, the construction of sustainable local
communities requires that we aim for net zerocarbon dioxide emissions.
Going forward, the Group will continue toresolve social and environmental issues in theregion and strive to contribute to sustainablegrowth through resource and energy
conservation through financial transactions using
FinTech, initiating the handling of privately
placed SDG bonds and other forms of SDG
promotional support among partner companies
through financial services, environmental load

Closing remarks
While the Group is a company which has only
recently been established, we do have a culture
which can tackle every type of challenge in an
era in which the business models of financial
institutions are significantly changing.
Going forward, we will maximize the positiveeffects of the merger, leverage ourresourcefulness and the collective strength of
the Group companies, and contribute to thesustainable development of the local economy
and local communities. On behalf of the Group, I
ask for your continued support andencouragement in the future.

8

Future image

Tokyo Kiraboshi Financial Group, Inc.

Establishing the“comprehensive service businessthat is also strong in finance”Group brand“A comprehensive
service businessthat is also strong
in finance”

Medium-Term Business Plan

External
environment

Continuation of negative interest rate policy

Declining birthrate and aging population

Entrants from other industries

Acceleration of FinTech

Internal
environment

Concept

Providing high-quality services

Improving corporate value

Strengthening group business management

Appropriate response to changes in management environment

2020

Sept

Apr

Business integration with
ShinGinko Tokyo

Birth of Tokyo TY
Financial Group

Head Office relocation
Relocation from Shinjukuku (Shinjuku office) to
Minato-ku (Kiraboshi Bank
Aoyama head office)Birth of Kiraboshi Bank

Establishment of
Kiraboshi Capital
To respond to the needs inmezzanine, funding (incl. IPOs)

Establishment of Kiraboshi
Consulting
To strengthen consulting
functions aimed at enhancing
comprehensive financial services

Apr

Kiraboshi Consulting Co., Ltd.
Nov

Establishment of Kiraboshi Tech
To expand into the FinTech area

“Building a business model that takes
dialogue as its starting point”
We aim at a management approach that, by
maintaining “high-quality” contacts withcustomers, local communities, investors andemployees, improves satisfaction for everybody
Numerical targets

Scheduled operation
start of Kiraboshi Life
Design Securities

Proﬁt (Tokyo Kiraboshi FG)
Upfront investment in
subsidiary, impact of changes
in market environment, etc.

Net core business income (Kiraboshi Bank)■Results ■Medium-Term Business Plan(¥100 million)■Results ■Medium-Term Business Plan(¥100 million) Business Plan
targetRevised plan

Business Plan ¥10 bn
Revised plan target
or more65bn
76 ¥6Forecast
40

2019

Aug

Conversion of three companies towholly-owned subsidiaries
To enhance group function(Tokyo Kiraboshi Lease, Kiraboshi
System and Kiraboshi JCB)

Oct

Opening of subsidiary in Vietnam

Dec

Establishment of
securities subsidiary
To embrace a new challenge ofdeveloping securities businessin the Tokyo area

“Kiraboshi People”are able to win the trust ofcustomers, think and act by putting themselvesin their shoes, and experience success as a result.
(3) Business‌
process re-engineering to strengthen
contact with customers
Realize work styles that make tangible the meaningfulnessof work and enable emotional fulfillment through reformof awareness and value of work.

Business model

2019/3 2020/3 2021/3
plannedOHR (Kiraboshi Bank)
Results 2023/3 target ﬁgures
75% or lessEﬀects of ﬁrst call exercise
and other initiatives

130

49

Kiraboshi Capital Co., Ltd.

2017

Oct

June

Aug

2016

2014

Systems integration(1) Enrichment of consulting functions
Through enrichment of consulting
functions, aim to be a bank to whichcustomers will give the first call.
resources development focusing on(2) Human‌dialogue abilities for being chosen and trusted
Developing“Kiraboshi People”(1) ‌Creation of a“new kind of urban regionalbank for the Tokyo area”(2) ‌Commitment by the Group to contributeto the development of the Tokyo area(with a tangible presence in the Tokyo area)(3) ‌Start-up spirit based on “Challenge &Speed”

142¥12.5 bn
155

¥16 bnor more2023/3

2019/3 2020/3 2021/3
planned

14,87011,290BusinessPlan
80.7%
numerical
targetAnnualtarget

7,000
77.0%

75%

2023/3(count)85%

80% or less

Forecast
147

First call (Kiraboshi Bank)

2019/32020/3

2019/32020/3

Leverage the collective strength of the Group with the aim of developing a comprehensive service business that is also strong in finance
Provision of solutions through Group wide collaboration
・Provide consulting services to improve corporate value
・Ensure commitment to customer-oriented business practice・Serve the functions of a trading company in the Tokyo metropolitan area
Issues

May

2018

May

Main measures

M&A

Business succession

Capital enhancement

Shortage of skilled workers

Asset building

Asset management

Inheritance

Propose problem-solving menuGroup-wide sharing of issues

Expansion of sales channel

Capital investment

Overseas expansion

Business start-up

Management improvement

External specialized organizations

Kiraboshi Tech, Inc.

Customers

External partner organizations

Enhancement of the Group’s proposal capabilities
Banking and securities
business collaboration

FinTech(Tech)

CapitalOverseas
supportSecurities
subsidiaryBank

Consulting

Leasing

Creditguarantee

Creditcards

Variousservices

Improvement of Group’s proﬁtability
Continuous and stablepayment of dividends

9

Shareholder return

Shareholders

Improvement of corporate value

Improvement of Group value
by enhancing Group functions

10

Tokyo Kiraboshi Financial Group, Inc.
Business modelBusiness model
working for SMEs in collaboration with local governments such as Tokyo Metropolitan Government and related organizations◦In addition to alending-centric business model, is actively promoting a consulting business that makes dialogue with the customer as the starting point

Business model that takes dialogue as the starting point

Management resources utilized

Financial capitalP
A

The Kiraboshi KPI Concept

・Sound loan assets
・Abundant net assets

Aimed at activities yielding results in the
future, rather than on short-term performance

Human capital・Diverse human resources
・Kiraboshi People*

First call (Kiraboshi KPI)

7,000 annually*‌People who are able to win the trust of customers,
think and act by putting themselves in their shoes,
and experience success as a result.

Intellectual capital
・Evaluation of business feasibility
・Consulting functions
・Diverse funding methods
・Trust functions
・Collaboration with FinTech

Proposals that meet customer needs (KPI)

Balance between customer satisfaction and Group performance
Achieving Kiraboshi KGIFY2022

Profit of ¥10.0 billion or more

D
C

PDCA cycle embodying the“Getting theSocial/related capital・‌Branch network with close ties tolocal communities
・Networks with external organizations・‌Asian network(China, Thailand, Vietnam, etc.)
・‌Collective strength of Kiraboshi
Group・Customer baseContinuously review actions(improve skills) to increase the numberof higher quality proposals
First call proposal details
Main proposal genres◦‌Support for mainstay operations /becoming customers’main bank, etc.
◦M&A, business succession, etc.
◦Guidance, business matching, etc.
◦Loans, financial products, etc.

(the“first call cycle”)

Actions for Kiraboshi KPI targets
Person in charge
Visit preparation
Customer contact
Understanding the situation

Sharing management
themes withcustomer

Proposal - investigation
Proposal - implementation

first call”concept
Evaluation by customers(Carry out checks from acustomer’s perspective)
Dialogue, customer surveys
Evaluation by customers

Confirming customer evaluation

Becoming the bank customers call first
Creating
shared value

Creating corporate value / Improving satisfaction
Contributing to the revitalization ofCreating value withstakeholders

Services for individuals

Customer・Deposits・‌Asset management /administration(investment trusts, government
bonds, insurance, etc.)
・‌Housing loans / loans
for specific purposes...etc.

・Providing‌highly specialized consulting
services through dialogue・‌Realizing customer-oriented business
operations
・Enhanced convenience

Services for corporations
・Loans, forex, trust functions
・Equity finance・Consulting services
・Business matching・‌Supporting start-ups, M&A,
business succession・‌Support for overseas
expansion...etc.
Other・‌Regional headquarters
structure・Intra-group collaboration
・External collaboration
・Maekyu service
・Internet banking
・‌Kiraboshi Bank app...etc.

Expanding operational basethe region/regional development

A business model that starts with an understanding of the customer,

and in which being selected by them ultimately leads to profits[Robust management base that supports our business model][CSR management]

Corporate governance, integrated risk management, compliance, financial capital, humancapital, intellectual capital, social/related capital

11

OUTPUT

Product/service being proposed

Creating shared value

INPUT

base in Tokyo area, Japan’s greatest concentration of economic strength◦Has a history ofProcess for KPI firstcall certification

Tokyo Kiraboshi Financial Group’s Strengths◦Operational

Environment / local communities
・Initiative‌
to contribute to environmental
problems such as the aging of society
and climate change・‌Contributing to the sustainable developmentof local communities, which is the operationalbase of the Group・‌Resolving societal issues through ourmainstay operations
Employees
・‌Developing“Kiraboshi People”
・Putting‌in place an environment inwhich diverse human resources canwork to implement the business model・‌Achieving work-life balance by
providing flexible work styles
・‌Involvement of diverse humanresources
Shareholders and investors・‌Maximizing shareholder value overthe medium to long-term
・Constructive dialogue・‌H i g h l y t r a n s p a r e n t d i s c l o s u r e
including non-financial information

Based on its management philosophy, the Group seeks to help form sustainable local
communities through the three action areas of“contribution to the local economy,”“contribution
to local communities,”and“initiatives for environmental problems.”

12Tokyo Kiraboshi Financial Group, Inc.
Toward sustainable development

Toward sustainable development
Tokyo Kiraboshi Financial GroupSDG Declaration

Contributing to local communities

T h e T o k y o K ir ab o s hi Fin an cial Gr o up aim s t o b e“ acomprehensive service business that is also strong in finance.”
Based on its management philosophy of“to be a financial groupfor small and medium-sized enterprise customers and individual
customers in the Tokyo metropolitan area that will contributeto the development of local communities throughcomprehensive financial services,”the Group is working, throughits corporate activities, on initiatives related to the SDGs
adopted by the United Nations summit, and seeking to realize asustainable society and to create shared societal value.
To achieve the Sustainable Development
Goals “SDGs”() adopted by the United
Nations in 2015, the Group has drawn up
a“Tokyo Kiraboshi Financial Group SDG
Declaration,”the main themes of whichare (1) environmental protection, (2)contributing to local communities, (3)creation of shared value with thecustomer, (4) employee’s work stylereform and promotion of diversity, and (5)dialogue with shareholders and investors,
all of which have a close affinity to the
management philosophy and its three CSR
action areas, with the objective of working
to resolve societal needs and problems
through the provision of a variety of
products, services and the CSR activities.

While deepening our dialogue with customers
and those living in local communities, we takeinitiatives to create a safe and abundant society inwhich everybody can live securely and healthily,
and work to realize a sustainable society.

Local
communities

Creation of shared value with the customer
Environmental
protection

Environment

Management
philosophy

EconomyEmployee’s work style reformand promotion of diversity

Society

Environmental protection
In order to leave to those people living in local
communities, and to the children who will be thebearers o f the ne x t generation, a futureenvironment that enables a safe and abundant
future lifestyle and one in which they can live
securely and healthily, the Group is taking
measures to conserve and protect theenvironment that take into account climatechange and global warming, and striving to help
realize a sustainable society by means of its local
environmental activities and financial services.

Customer

Shareholders
and investors

By utilizing financing and various kinds of funds
based on business feasibility evaluations, as wellas providing sophisticated consulting functions insuch areas as business start-up, the expansion ofsales channels, and business succession thatmatch the company’s stage of life, we will createshared value with the customer, and contributeto the sustainable growth of the local economy.

Employees

In addition to promoting Kenko Keiei (health andproductivity management*) by encouraging awork-life balance, the Group is taking steps that
include supporting the contribution of women,
and creating an environment in which all
employees, irrespective of gender or age, canfeel satisfaction in their work, thus facilitating thedevelopment of diverse human resources and therealization of diverse work styles.

E

Environment

Environmental protection 

S

P15

SocialContributing to local
communities 

P17Creation of shared value withthe customer 
P19

Employee’s work style reformand promotion of diversity  P25

G

GovernanceDialogue with shareholders
P29
and investors “* Kenko Keiei®”is a registered trademark of Workshop for theManagement of Health on Company and Employee.

Dialogue with shareholders and investors
In order to achieve sustainable development for theCompany and enhance shareholder value, as well as
raise the transparency and objectivity ofmanagement, we are striving to assist in thedevelopment of local communities throughstrengthening structures associated with corporate
governance and working to ensure compliance.
13

Tokyo Kiraboshi Financial Group’sbasic policy on CSR

The Tokyo Kiraboshi Financial Group aspires to become
the region’s No. 1 urban regional bank, and we regard
the practice of CSR management to contribute to theformation of sustainable local communities as one ofmanagement’s key priorities. Based on its management
philosophy, the Group is actively involved in CSR
activities in the three action areas of“contribution to the
local economy,”“contribution to local communities,”and“initiatives for environmental problems.”

Tokyo Kiraboshi Financial GroupTo be a financial group for small and medium-sized enterpriseManagement customers and individual customers in the Tokyo metropolitan
philosophy area that will contribute to the development of local

communities through comprehensive financial services.

Contributing to local economy

Contributing to local communities

Initiatives for environmental problems

Forming sustainable local communities
14

Environmental protection
In order to leave to those people living in local communities, and to the children who will be thebearers of the next generation, a future environment that enables a safe and abundant future lifestyleand one in which they can live securely and healthily, the Group is taking measures to conserve andprotect the environment that take into account climate change and global warming, and striving tohelp realize a sustainable society by means of its local environmental activities and financial services.

Investments in green bonds/green financeWith interest in Environmental, Social and Governance(ESG) investing rising on a global scale, there has been an
expansion in green investing initiatives that seek to deploy
funds into environmental businesses and businesses thatgenerate environmental improvements, etc.
In addition to investing in the“Tokyo Green Bonds”that
the Tokyo Metropolitan Government sold as the first such
instruments issued by a local governmental entity inJapan, the Group invested in the Green Jointly Operated
Designated Money Trust (product name“The UUR Green
Trust”) structured by Sumitomo Mitsui Trust Bank.

Protection of the naturalenvironment (setting up parks)

Response to climate change (installationof high-tide defense facilities)

Environmentally aware branch equipment*‌The J-Credit Scheme is certified by Japan as a system of“credits”for the amount of CO2 andother greenhouse gas emissions reduced and absorbed through the introduction of energysaving devices, forestry management, and other initiatives.

The Kiraboshi Eco Passbook (Web passbook) is a web passbook
service that, instead of a paper passbook, can be used to confirm up to
37 months of transaction details in a Kiraboshi Home Direct account.
The Kiraboshi Bank app is a free smartphone app that can be used toview account activity and balance information in the way similar tothat of a paper passbook. This environmentally friendly service results
in a reduction in paper resource usage.
Aoyama office

Utilizing paperless meeting management systems, electronic approval and reporting systems
Board of Directors meetings and management meetings, etc. are held using tablets, etc. without any paper.
In addition, we are promoting a shift to paperless operations by managing the creation, referencing, approval, andsubsequent document management of approval forms and report forms from the headquarters, etc. with anelectronic approval and reporting systems.
Shifting to a paperless operation not only reduces the volume of paper used but also leads to an acceleration ofdecision-making and productivity improvements.

With regard to the Kiraboshi Bank Aoyama head officeand the Takinogawa branch (and central operations
center) that were constructed using materials fromT a m a , t h e u s e o f To k y o f o r e s t r y r e s o u r c e s w a s
appreciated by the Tokyo Metropolitan Government,
which certified the Group under the “Tokyo Forest
Action accreditation system (recognition of CO2 volume
fixed by means of buildings, etc.).”Signing the“21st Century Principles of Financial Action”
Takinogawa branch (and central operations
center)Aoyama head officeSigning of collaboration agreement relating to planting of“Corporate Forests - Kiraboshi Forest”forestry resources

15

The Group’s Kiraboshi Bank offers environmentally aware financial
products, such as“growing low pollen forests”term deposit accounts
and“Nikko Eco Fund (an Internet-only product).”Such deposits resultin donations to the Tokyo Development Foundation for Agriculture,
Forestry and Fisheries’“donation for growing low pollen forests.”
Moreover, we started handling the“Kiraboshi SDGs Private Placement
Bonds”in June 2020 to expand the adoption of SDGs and support
initiatives to resolve environmental and social issues. In addition, weare striving to promote the adoption of the J-Credit Scheme* incooperation with external organizations.

Kiraboshi Eco Passbook (web passbook), Kiraboshi Bank app

Certified under the“Tokyo Forest Action”accreditation system

As part of the“the campaign for growing low pollen
forests,”the Group signed a collaboration agreement
related to the planting of“Corporate Forests - Kiraboshi
Forest”forestry resources in March 2019, through which
it will encourage sustainable forestry management
through forest protection activities.
Furthermore, in October 2019 the Group conductedenvironmental training for employees, and carried out
planting activities to raise awareness for the environment.

The Group’s Kiraboshi Bank is extending its cooperation to the“thecampaign for growing low pollen forests”in order to allow healthy
forests to be maintained into the future, while also contributing toefforts to prevent global warming. As part of these efforts, it makes adonation every year to the Tokyo Development Foundation for
Agriculture, Forestry and Fisheries’“donation for growing low pollen
forests.”

Provision of environmentally aware products, services, etc.

(Photo credit: courtesy of Tokyo
Metropolitan Government)

So as to reduce CO2 emissions, the Aoyama office uses
environmentally friendly facilities such as solar power
generation, the reuse of rainwater, and the creation ofrooftop greenery. We are also moving forward withenvironmentally aware branch designs, such as switching
branch lighting to LED bulbs.
Furthermore, we are working on initiatives to counter
global warming through our business activities, such asoffering financial products and services that lead toenvironmental protection.

Cooperating with“campaign for growing low pollen forests”

Environmental protection

E nviroment

Kiraboshi Bank, Ltd. has signed the“Principles of financial action toward the formation of a sustainable society(commonly known as the 21st Century Principles of Financial Action).”
The Group is strengthening initiatives for environmental and social issues directed at the achievement of SDGs andwill strive to develop sustainable local communities.

The actions of each and every individual are important
Our SDG initiatives are not limited only to the activities of theorganization. The actions of each and every individual are also required
for the achievement of these goals. As the everyday behavior of eachof our employees also relates to the SDGs, we will here introduce aselection of the day-to-day actions taken by them. Going forward, ouremployees will work as one toward the achievement of the SDGs.
・‌Drive to save electricity by turning off lights in places where nopeople are present
・Adoption of“Cool Biz”and“Warm Biz”
・Recommending use of own reusable bag and bottle
・PET bottle recycling programs, etc.

16

Contributing to local communities
While deepening our dialogue with customers and those living in local communities, we takeinitiatives to create a safe and abundant society in which everybody can live securely and healthily,
and work to realize a sustainable society.

CSR initiatives through the promotion of sports
On “Kiraboshi Bank Day,” which we hold every year as asupport event in collaboration with TOKYO FOOTBALL CLUBCo., Ltd., which manages the“FC Tokyo”J. League club, weaward funds for children’s education.
We endorse the“SPORTS of HEART”project, which aims tocreate a Japan in which everybody can share a rich and fulfilling
life, and we also sponsored the“SPORTS of HEART 2019”sports and culture festival, which can be enjoyed both by thosewith and without disabilities.
In addition, in April 2019 we hired two top athletes for the firsttime, and going forward we will continue to contribute to thedevelopment of local communities through the promotion ofsports.
The two athletes have been designated as elite athletes for
FY2020.

Through sponsorship of the Japan Football Association’s“JFA Kokoro Project,”
we support the“Dream Class”program in which“Dream-Teachers,”whose
members include currently active athletes and former alumni of the project, andwho convey“the importance of having a dream”mostly to audiences consisting
mainly of 5th-grade elementary school children.

Dream-Teacher: Naohiro Ishikawa (soccer)

Hosting lectures provided through donations at the“TMU Premium College”
As part of the“Agreement to Support SMEs Through Academic-Industrial
Collaboration”initiative signed between the Group and Tokyo Metropolitan
University in August 2017, the“Kiraboshi Bank Finance Academy”lecture
provided through donations was held a total of five times at the“TMU PremiumCollege”from October 2019.

Shingo Sawa
(Athletics - pole vault)

Dan Iwasa(speed skating - short track)

Certified as a“Tokyo Sports Promotion Company”
The Group hosts the“Dream Cup”as part of its CSR measures for the sounddevelopment of local children. We sponsor sports events in local communities,
such as soccer events for girls and local volleyball. These initiatives havereceived widespread recognition, leading to the Company being certified by the
Bureau of Tokyo 2020 Olympic and Paralympic Games Preparation as a“2019Tokyo Sports Promotion Company”and by the Japan Sports Agency as a“2019Sports Yell Company.” We will continue to play an active part in sports
promotion activities into the future.

In March 2019, as part of the“Community Dialogue Project”run by the Johoku/
Nishi Tokyo regional headquarters, the Group sponsored the“Nerima Kobushi
Half Marathon,”in addition to which many employees played an active role asvolunteers.
December 2019 saw the holding of“MINATO City Half Marathon 2019,”and
we were sponsors of this marathon event as a financial institution whose head
office is located in Minato City.

Cooperation with TEAM BEYOND
The Group is registered at the“TEAM BEYOND*”fan site set up by the Tokyo
Metropolitan Government for sports for those with disabilities (para sports), andcooperates in the promotion of para sports.
*‌TEAM BEYOND is a Tokyo-based team that seeks to create a future in which everybody can express theirindividuality through para sports.

Initiatives for training“dementia supporters”
Against the backdrop of the rapid aging of society, we are carrying out
initiatives to train “dementia supporters” with the aim of achieving local
communities in which those suffering from dementia and their families can havepeace of mind in their daily lives.
The Group has implemented initiatives whereby people can obtain“dementia
supporter”qualifications, and“dementia supporters”are assigned to eachdepartment and branch.

Tokyo Metropolitan University

Cooperation with the Nihon University College of Art (aimed at creating new value)
In June 2020, we signed a“Cooperation Agreement”with the Nihon University College of Art for the purpose ofrevitalizing the local economy and developing local communities as well as to contribute to the evolution of arts
education and research. Through this cooperation,“Kiraboshi Bank”will be able to create new forms of value in
addition to conventional financial services, and the students will be able to gain experience as creators bybecoming directly involved in business strategy and financial services while at the“Nihon University College of Art,”
which will allow both parties to maximally utilize each of their strengths. This cooperation will lead to local andregional revitalization without being caught up in conventional frameworks for partnerships between industry andacademia, and we hope to continue such initiatives in the future.

Cooperating with blood donations
As part of our activities to support local communities, we also cooperate withblood donation drives. By continuing these activities so as to help save more lives,
we cooperate with the blood donation centers of the Tokyo Japan Red Cross toenable us to save the precious lives of those who need blood transfusions due toillness or injury, and will carry on these endeavors into the future.

Sponsorship of local marathon events

17

Educational support for students and children

Contributing to local communities

S ocialCooperation with UNICEF fund-raising activities, etc.

Staff and others who participated“MINATO City Half Marathon 2019”

The Group runs“a foreign coins collection program,”and the donations thus
collected are put to use in support activities for children conducted by UNICEF in
150 or more countries and regions.
Also, within the Group, as part of our everyday volunteer activities we collectused stamps and cards and donate them to the Minato Council of Social Welfare.

Donations to Ronald McDonald House
Ronald McDonald House is operated by Ronald McDonald House Charities
Japan, and offers accommodation to lighten the economic and emotionalburden of seriously ill children and their families. The Group makes donations
to this charity every year. We will continue with this support to enable children
with a future to be supported by their families while they are cured of theirillnesses, allowing them to grow strong and healthy.

Ronald McDonald House Charities Japan

Initiatives for local art and cultural activities
The Group also sponsors the NIPPON STEEL Arts Foundation, which is basedin the Kioi Hall. In addition, by sponsoring the creation and communication of
the arts and culture, and the training and education of people in this area, suchas by sponsoring the Tokyo Metropolitan Symphony Orchestra (support forseats for younger people), and by hosting the“Kiraboshi Christmas Concert”atthe Aoyama office, the Group actively supports local art and cultural activities.

Kioi Hall

18

Creation of shared value with the customer
By utilizing financing and various kinds of funds based on business feasibility evaluations, as well as◆Regional headquarters structure and a key satellite strategy

providing sophisticated consulting functions in such areas as business start-up, the expansion of

The Group has introduced a regional headquarters structure in preparation for“building a customer-oriented sales
structure.”With each regional headquarters providing the centers, going forward we will develop close-knit“dialogue”with customers and regions.

sales channels, and business succession that match the company’s stage of life, we will createshared value with the customer, and contribute to the sustainable growth of the local economy.

By using the regional headquarters structure and key satellite strategy, as well as opening locations in open territories
in such a way as to meet local characteristics and needs, we will build a network with“dialogue”as the starting pointFirst call concept and PDCA“The number of first call contacts,”to which proposals are made in relation to support for mainstay operations orlife plans, has been made a KPI, and in the fiscal year ended March 31, 2020, a total of 14,870 such contacts were
made, significantly exceeding the annual target of 7,000.

D

The Kiraboshi KPI Concept

Actions for Kiraboshi KPI targets

Joto

headquarters

Tokyo Mirai Sales Division(entire Tokyo Metropolitan area)

headquarters

Jonan

Machida/Sagamihara, suburban Tokyo area

Evaluation by customers(Carry out checks from a customer’s perspective)

Sagamihara/Central Kanagawa

CentralTokyo area

Large branches

headquarters

headquarters■ Substantial delegation of authority to
the seven regional headquarters■ Community-based sales activities■ Flexible deployment of personnel
amongst the regional headquarters◦Pursuing group synergistic effects

As of March 31, 2020

Kiraboshi Bank, Ltd.
Kiraboshi Consulting Co., Ltd.
Kiraboshi Business Consulting Shanghai Co., Ltd
KIRABOSHI BUSINESS CONSULTING VIETNAM Co., Ltd.
(Opened in October 2019)

Kiraboshi Tech, Inc.
Kiraboshi System, Inc.

Bank

Creditguarantee

Capital/leasing

Consulting

FinTechKiraboshi Credit Guarantee Co., Ltd.
Yachiyo Credit Guarantee Co., Ltd.

Tokyo Kiraboshi
Financial Group, Inc.

Creditcards

Associatedservices

Systemdevelopment
Securities

Kiraboshi Capital Co., Ltd.
Tokyo Kiraboshi Lease, Inc.
Kiraboshi Credit Service Co., Ltd.
Kiraboshi JCB Co., Ltd.
Kiraboshi Service Co., Ltd.
Kiraboshi Business Service Co., Ltd.

Kiraboshi Life Design Securities Co., Ltd. (Scheduled to start operation in August 2020)

19

Satellite branches (branches focused on individual customers)
Branches focused on individual customers to devote
to making proposals on asset management, etc.

Machida/Yokohama/Kawasaki

headquarters◆Enhancing the collective strength of the GroupThe Group is made up from the Company and 15 group companies and by providing a wide range of financial products
and services to local people, is enhancing its collective strength to enable it to become“a comprehensive service
business that is also strong in finance.”
To further promote a customer-oriented business operation and to be able to provide products and services whichmeet the needs of customers more than ever before, we plan to open“Kiraboshi Life Design Securities Co., Ltd.”in
August 2020.

Transfer of personnel
in charge ofcorporate customers

Head Oﬃce Sales Division

headquarters

C

Consolidation of corporate transactions

headquarters

Tokyo ward area

Josai

Tama

PDCA cycle embodying
the“Getting the ﬁrst call”
concept

Continuously review actions (improve skills) toincrease the number of higher quality proposals

Key branches (full-line branches)

Johoku/Nishi Tokyo

P

A

Regional headquarters structure

Creation of shared value with the customer

S ocialEstablish new branches in open areas thatrecognize the special features of the area
April 2019
Opening of Kawasaki Corporate Business Oﬃce
November 2020
Opening of Shimokitazawa Oﬃce (scheduled)
December 2020
Opening of Kasai office (scheduled)

Respond to the needs speciﬁc to the special features of the area (market) with a sense of
speed and through“dialogue”with the community and customers.
◆Collaboration with external organizations

Tokyo Kiraboshi Financial Group / Kiraboshi BankTokyo Metropolitan Government
Tokyo Metropolitan Small andMedium Enterprise Support Center

Kanagawa Institute of Industrial
Science and Technology

Sumitomo Mitsui Trust Bank,
LimitedYokohama Industrial
Development Corporation

Jimoto Holdings, Inc.
Kirayaka Bank, Ltd.

Tokyo Foundation for
Employment Services

Kawasaki City

Tokyo Metropolitan Industrial
Technology Research Institute

Sagamihara City

Senshu Ikeda Holdings, Inc.

Tokyo Metropolitan University

Inagi CityThe Senshu Ikeda Bank, Ltd.

Tokyo Labor Bureau

Tokyo Chamber ofCommerce and Industry

Sky Ocean Asset Management
Co., Ltd.

The Sendai Bank, Ltd.

(as of April 1, 2020)20

Support for expansion/operations overseas

Supporting business start-ups

From the perspective of the small and medium-sized enterprises in the Tokyo area that constitutes the operationalbase of the Group, overseas markets, and those in Asian regions in particular, are becoming increasingly importantas an extension of the domestic market. At the same time, we believe that technology and services that are
already mature in Japan will, going into the future, be readily accepted among Asian regions that are still in their
growth phase (the“time machine”model). Moreover, in this situation local companies hold the potential to inherit
businesses from Japanese companies, or to become joint operators of businesses and growth drivers. We will act
as a bridge between such local Asian companies on the one hand and our customers on the other, developing the“New Overseas Strategy”described below in order to respond to customer needs.

◆Kiraboshi Bank’s new overseas strategy

The Company set up a“start-up support group”within Consulting Division providing assistance for the various
needs of founders and entrepreneurs, as well as providing bridges to external start-up support agencies. Moreover,
we are expanding the menu of support services through coordination with the Group companies including“Kiraboshi Capital Co., Ltd.,”“Kiraboshi Consulting Co., Ltd.,”and“Kiraboshi Tech, Inc.”
In addition, we exhibited at the“Tokyo International Industry Exhibition”in November 2019 to introduce theGroup's initiatives for supporting SMEs and local revitalization. Once again, we set up an exhibition corner as we
did the previous year featuring 10 companies, where female managers play an active role, that the Group has
supported since their establishment under the theme of“Making Kiraboshi Bank the natural partner for start-ups.”
Through cooperation with the“Tokyo Venture Championship 2019 [supported by the Tokyo Metropolitan
Government]”and other events, we will strive to provide business growth support for entrepreneurs aiming tocreate unicorn companies and job creation.

Creation of shared value with the customer

Creation of shared value with the customer

1. ‌Provide opportunities to small and medium-sized enterprise customers for alliances, business matching andcross-border M&A, etc., with local Asian companies by offering information on such organizations
2. ‌Invest in or collaborate with offshore funds in order to obtain information on local Asian companies(Strengthen information network in Asian regions)‌Following on from the only consulting subsidiary in Shanghai (China) operated by a regional financial institution,3.
establish a consulting subsidiary in Ho Chi Minh, Vietnam (reinforce the China-plus-one support structure)

Tokyo International Industry Exhibition 2019

Supporting customers with afull-ﬂedged consulting
organization

Kiraboshi Bank’s new overseas strategy… Shinhan Financial Group oﬃces

July 2019
Business alliance with Shinhan Bank Japan(Shinhan Financial Group)Tokyo Venture Championship 2019

Through the collective strength of our Group, Kiraboshi Bank provides
a wide range of ﬁnancial products and services to everyone in thelocal community as“a comprehensive service business that is alsostrong in ﬁnance.”(as of December 2019)

Southeast Asia

122 oﬃces

Kiraboshi Capital Co., Ltd.

EquitysupportHands-onsupport(a subsidiary of Tokyo Kiraboshi Financial Group)

Kiraboshi Tech, Inc.

Collaboration

August 2009
Shanghai, China Consulting subsidiary

Customer

Kiraboshi Business Consulting Shanghai Co., Ltd

Consulting Division, Kiraboshi Bank, Ltd.

Asian markets as an extensionof the domestic market

Vietnam

Personnel dispatch
to local banks(a subsidiary of Tokyo Kiraboshi Financial Group)

China

October 2019

ThailandHo Chi Minh, Vietnam
Opening of consulting subsidiary

Singapore

Hub of information
related to Asia

Capital injection andpersonnel dispatch to local funds

Asian business support in Japan and overseas

21

Kiraboshi Consulting Co., Ltd.

Improvementof corporatevalue(a subsidiary of Kiraboshi Bank)

Maekyuapp

Collaboration

September 2019Conclusion ofbusiness matching
agreement with HIS

Collaboration

Business
succession

Selected benchmarks
Number of start-up support cases

Shiftmanagement
apps

Strengthening
governance

FY20173,012

FY20185,322

FY201910,652
1,745

Support for drawing up start-up plans

1,529

687

Financing to customers during start-up period (executed)

1,058

1,173

1,247

Introducing financial agencies affiliated with the government and institutions supporting start-ups

276

1,192

3,365

Subsidies, financing and investment in venture businesses

149

2,270

4,295

FY2017FY2018FY2019*FY2017 count also includes cases received at sales offices.

Proprietary benchmarks
Number of start-ups supported in partnership with local government organizations, etc.

194

1,053

2,160

22

Status of initiatives related to the support of management for small and medium-sized enterprises, as well as the revitalization of the region<Offer consulting functions by leveraging contact with the broad customer base to which wehave access as a local regional bank to display the specialization within the overall Group>

ABL

The Group is striving to strengthen its response capabilities with respect to business continuity through regulations
and system maintenance for responding to natural disasters and infectious diseases, etc. In addition, we are
introducing a safety verification system and maintaining the functions of buildings and facilities, etc. to be able touse facilities and systems, etc. in a continuous and stable manner while also implementing measures such as
assessing facility aging, carrying out appropriate maintenance management, and conducting anti-disaster drills to
prepare for various types of disasters, accidents, and infectious diseases, etc.
In particular, because the impact of the novel coronavirus disease (COVID-19), etc. has increased, we establishedan emergency response headquarters headed by the President of Kiraboshi Bank, a subsidiary of the Company. To
prevent infection, we are striving to implement measures to reduce the risk of simultaneous infection by employees
engaged in the same work by changing the business hours and implementing measures to prevent closed spaces,
crowded places, and close-contact settings (Three Cs) at branches, instituting more diverse and flexible work
styles, and reviewing the work attendance conditions.

Japan Finance Corporation◆Investment participation in the“2019 Wide Area Reconstruction Support Fund for Typhoon Damage”◆Demonstrating consulting functions and strengthening relationships by leveraging contact with the broad customer base
The Group continues to aim to be the main bank for small and medium-sized enterprises in the Tokyo area,
working to provide support for growth that helps raise customer productivity, demonstrating its consulting
functions and striving to strengthen relationships.

Financing based on businessfeasibility evaluations

Tokyo Metropolitan Government

SF Division

Consolidationof functions

Structured ﬁnance(Established in January 2019)○Share know-how○Accompany visits to and liaise with customers○Prepare complex contract documents, etc.

Medical/welfare ﬁelds

Sales oﬃce
First call

SME

Collaboration

Capital subordinated loan

Initiatives for becoming customers’main bank

Actively support companies which may have ﬁnancial challenges
but are engaged in businesses with growth potential
Seek enhancement of corporate value, including improvement inﬁnancial position by reviewing borrowings in their entirety andrepayment method, etc.

The Group works actively to provide venues for business discussions and for the exchange of information withcustomer companies, such as by assigning specialists in business matching. We host a variety of businessdiscussion and information exchange meetings to support the expansion of our customers’sales channels.
Selected benchmarks
FY2017FY2018891

FY2019

Local

745

1,100

Overseas

103

140

45

Total

848

1,031

1,145

Selected benchmarks
FY2017
Total number of customers
and number of customers byregionTotal number of customers
Number ofcustomers byregionLocal

The Group participated as a limited partner in an investment in the“2019 Wide Area Reconstruction Support Fundfor Typhoon Damage”(hereinafter,“Fund”) which was newly established in January 2020 by the Regional
Economy Revitalization Corporation (REVIC) of Japan. The primary purpose of the Fund is to release excessive
debt, provide necessary capital, and offer physical support to companies, etc. that have suffered damage due totyphoons and other disasters. As a financial institution which is deeply rooted in the local community, we arehelping companies, etc. who have been affected by disasters to continue, reopen, and rebuild their businesses toachieve early recovery and reconstruction in disaster-affected areas through the Fund.
Furthermore, the name and rules, etc. of the Fund have changed due to the fact that businesses affected by the
spread of COVID-19 were added to the scope in June 2020.

◆Enhancement of financial intermediary and consulting functions◦Business matching

Number of companies where support for expanding
sales channels was provided

BCP measures

Creation of shared value with the customer

Creation of shared value with the customer

FY2018FY201927,75026,397

25,797

Tokyo

21,04019,867

19,565Kanagawa prefecture

5,484

5,231

5,011

Non-local

1,226

1,299

1,221

Providing full support to customers in the“fight against COVID-19”

Enhancement of financial support and consulting functions
February 2020: Started offering assistance in applying for emergency
lending program, set up loan consultation desks
March: Conducted a survey of approx. 25,000 companies on
business impact of COVID-19
March: Established COVID-19 Kiraboshi Fund (applicantsreceive responses in principle within 3 business days),
started loan consultation on holidays and loan modification
fee waivers related to business feasibility financing
April: Expanded holiday loan consultation to all branches
May: Extended period for operating holiday loan consultation(Some branches operated during the Golden Week period)
June: Started accepting consultation on funding problems via the Internet(ended holiday loan consultation)

Shared benchmarks
FY2017
Among companies that conduct transactions with afinancial institution as their main bank, the number(group) that has shown improvements in management
indicators or increases in the number of employees

FY2018FY2019Number of companies using us as main bank

9,404

9,432

9,855

Value of financing to companies using us as main bank¥777.5 billion¥941.5 billion¥1,149.2 billion

Number of companies showing improvement in management indicators, etc.

6,747

6,126

4,566

◦Multifaceted support for medical/welfare field
In an environment characterized by the declining birthrate and aging population, we have positioned the“medical/
welfare field”as a growth area and a local industry for the Tokyo Metropolitan area, to which we will provide
multifaceted assistance not only through financing but also through support for mainstay operations, etc.
Proprietary benchmarks
FY2017
Number of consulting support deals with medical and nursing care businesses

88

FY201882

FY201981

Kiraboshi support package
Funding◦ Effectively interest-free loans, unsecured loans◦ Original COVID-19 relief fund
◦ Consultation on funding problems

Subsidies/grants(information and guidance)◦ Ministry of Health, Labour and Welfare◦ Ministry of Economy, Trade and Industry◦ Tokyo Metropolitan Government◦ Kanagawa prefecture ◦ Saitama prefecture ◦ Chiba prefecture

Support of mainstay
operations(Business matching,etc.)◦ Development of business plan, management plan
◦ Cost reduction (rent, electricity, communication, other expenses)◦ HR support ◦ Accounts receivables guarantee◦ Subcontracting receivables protection (construction industry)◦ ICT implementation support ◦ Equipment procurement / leasing* ‌Responding to inquiries on diverse subjects including collaboration with administrative bodies and public financial
institutions, and use of directed credit programs and subsidies

23

24

Employee’s work style reform and promotion of diversity
In addition to promoting Kenko Keiei* (health and productivity management) by encouraging a work-lifebalance, the Group is taking steps that include supporting the contribution of women, and creating anenvironment in which all employees, irrespective of gender or age, can feel satisfaction in their work,
thus facilitating the development of diverse human resources and the realization of diverse work styles.
“* Kenko Keiei®”is a registered trademark of Workshop for the Management of Health on Company and Employee.

Setting up of“Diversity Promotion Section”
In order to promote diversity management as a management strategy, we established a“Diversity
Promotion Office”in October 2018 to positively promote organizational diversity including the active
participation of women. We are promoting various initiatives such as the hosting of the“Kiraboshi
Women's Inclusion Network”to support the recognition and improvement of issues in women's careers
and the“Meetup with Outside Directors,”and the“Declaration to achieve a 100% rate for male
employees taking childcare leave.”In December 2018, in recognition of the quality of its initiatives
related to the promotion of women’s active participation and advancement, the Company wascertified at the highest“Stage 3 level”of the“Eruboshi”by the Minister of Health, Labour and Welfare.

Certified“Eruboshi”
mark (Stage 3 level)◎Introduce mobile work and launch awork from home and ﬂex time system trial

Support for balancing work and home

Respect for diverse human resources◎Promote women’s active participation
and advancement, and utilize personnel
irrespective of their nationality orwhether they have disabilities◎Enrich system for supportingbalance between work andchildcare/caregiving◎Encourage male employees totake childcare leave

Work-life
balance

Support for
self-determined career design

Health and productivity management◎Establish female career path andraise the rate of promotion for
women in management roles◎Start investigation of career design
support and training system

Raise motivation

Increase productivity
to reduce
long working hours

Communication reform◎Reform internal communication andvisualize personnel information byinitiating a trial of 1 on 1 meetingsand 360° evaluations◎Acquire the“Silver Certiﬁcation”underthe“Healthy Company Declaration”

27.3%

27.1%

25.0%
20.0%
15.0%

14.5%

14.1%

27.5%

14.4%

Programs

Target year

14.4%

◎Promote the reform of work andthe value of work (Project ZERO)◎Reform awareness to facilitate
appropriate time management
and resolve long working hours

All employees(excluding first year)

Developing“Kiraboshi People”

First Penguin Program Leadership Course(FPP Leadership Course)

Late 30s to mid 40s

Conceiving and executing ideas about types ofvalue that Kiraboshi can provide in the future“* Kiraboshi People”are able to win the trust of customers, think and act by putting themselves in their shoes, and experience success as a result.

Development platform for Kiraboshi People

Fundamental financial
competence◦Obtaining financial knowledge◦OJT◦Self-development

×

Proportion of women at deputy section
chief level or higher
Proportion of women in management(section chief level or higher)

5.0%
March 31, 2019

September 30, 2019

Dispatch, etc. personnel to externalorganizations in and outside of Japan

Improve character/practical skills◦Implement new programs forhuman resources development inline with HR development policies◦Kiraboshi report◦First penguin program◦Innovation board◦Training camp for mid-career
staff jointly with officers◦Training specific to rank

◦Employment rate of people with disabilities
September 30, 2018

PurposeFirst Penguin Program Practical Course(FPP practical course)

27.1%

10.0%
0.0%

◦Leadership-oriented human resources with a sense of responsibility and ambition who can act
in a way which exceeds expectations and their role◦Facilitation-oriented human resources who understand the essence of things and share theirtrue meaning while respecting diversity◦Innovation-oriented human resources with a broad viewpoint and a strong sense of curiosity
who can enjoy new things

Business process re-engineering
at sales oﬃces and headquarters◦Proportions of women in management and at deputy section chief level (or higher)
30.0%

In order to realize the Group's future vision of becoming“a comprehensive service business that is
also strong in finance”as described in the“Start-up☆Kiraboshi”Medium-term Business Plan, we are
implementing the“Developing Kiraboshi People Program”to develop human resources who caninternalize the concerns and issues of customers and take action with a strong sense of ownership.
◆Human resources development policy

Supporting ﬂexible work styles“Kiraboshi-style”work style reform

Developing trusted human resources

3.00%

March 31, 2020

Employee’s work style reform and promotion of diversity

S ocial2.50%

Introducing mobile work and launchinga work from home and flex time system trial

Initiating a trial of 1 on 1 meetingsand 360°evaluations

Hosting Kiraboshi Women's Inclusion Networkand Meetup with Outside Directors

2.00%

Supporting flexible work styles that are
uncoupled from time and place, such as
considering the adoption of mobile-working

Stimulating communication, assessing
diverse staff member skills, and providing
career design support

Sharing work-related concerns,
recognizing issues, and supporting
improvements, etc.

1.00%

2.1%

2.5%

1.50%
0.50%
0.00%

FY2018FY2019×◦Administrative organizations/
economic organizations◦F i n a n c i a l i n s t i t u t i o n s , f u n dcompanies, and others◦Graduate schools◦Overseas related (finance/public)◦Medical◦FinTech related, etc.

Dispatch to affiliatedGroup companies◦Kiraboshi Consulting Co., Ltd.
◦Kiraboshi Tech, Inc.
◦Kiraboshi Capital Co., Ltd.
◦Shanghai local subsidiary, etc.

◦Rate of male employees taking childcare leave
16%
14%
12%
10%
8%
6%
4%
2%
0%

14.92%

0.0%
FY2018FY2019<<About the leave taking rate>>
Ratio of male employees who had a child during the fiscal years above
and took childcare leave within the same fiscal year

25

26

Digitalization / FinTech strategy
Productivity improvement through digitalization and business process re-engineering

Improvement of customer convenience through digitalization▪Completed systems integration in May 2020 for improved convenience and productivity▪Development and provision of Maekyu service using FinTech

Toward improved customer convenience

Digital strategy“Goal”
Seal-less, cashless and paperless bank

In April 2020, initiated verification test of digital money top-up applying the“Maekyu”scheme on
Group employees“Maekyu”service

Enhancement of Kiraboshi Bank app functions[Full of attractive andconvenient functions!]•Posted information includes
various coupon sites, overseas
remittance service and asset
management•Function upgrades are planned
to support users’work life

●Greater living convenience and higher
added value of bank accounts●Enhanced non-face-to-face channel

Image of advance payment with digital money

Number of subscribers: over 700 companies (as of March 2020)
Usage per year: around 1,170,000 uses (April 2019－March
2020)“Can Day”, a smartphone app
operated by Kiraboshi Tech

Digitalization / FinTech strategy

G overnance■Conventional Maekyu

Application

Maekyu service

Employee’s personal account

Paying inMaekyu■Conventional method of digital money top-up
Cash

Digital money top-up

Direct debit

Realizing a new digital money top-up with Maekyu■LINE Pay easy remittance service
Application

Maekyu service

API

Digital money top-up(On-line top-up platformoﬀered by Nihon Unisys, Ltd.)(1) Target users: expanded to cover from part-timers to full-time employees(2) Improved convenience and monetization, digital money top-up function and wallet function◆“Maekyu”service

Use of tablet computers and smartphones●Roll out of electronic approval system,
expense settlement system etc. in all
branches

Toward improved productivity throughbusiness process re-engineering

Promotion of Project“ZERO”●Simpliﬁcation of back-oﬃce processes(such as deposit
seal slips, addresschange procedure,loss related work,
inheritance work)

Trial implementation of mobile-working and hot-desking
Strengthen ﬂexibility to ensurebusiness continuity throughuse of video conferencing,mobile-working, etc.

Systems integration
27●Development of Groupware, promotionof paperless oﬃce
●Phased distribution of mobile PCs andsmartphones to sales personnel*Kiraboshi Bank, Ltd. and The Senshu Ikeda Bank, Ltd. are both banks whose base is in major conurbations, namely the Tokyo and Osaka areas
respectively, and whose goal is to contribute to the development and revitalization of economic society. With this in mind, on January 27, 2017, the twobanks signed an agreement on a Tokyo-Osaka partnership that“connects”the Tokyo and Osaka areas.

<Changes in external
environment and needs>

Transaction
lending

Expansion of services using“Maekyu”platform

Business process re-engineering

Maekyu is the banking industry’s first service that enables salary payment at any time, allowing people to receive
money before payday, within the limits of work done (a patent was received for the business model in June 2005).
Against the backdrop of recent labor shortages, it has been well received by companies aiming to secure staff andimprove retention ratios, and with the increase in the number of companies deploying the service, the number oftransactions is also rising nationwide.
We also established Kiraboshi Tech, Inc., which develops various kinds of apps and provides new services with FinTech
and venture companies, and in August 2018 released the“Can day”smartphone app for users of the“Maekyu”service.
Furthermore, we have granted a license for the use of the“Maekyu”service to The Senshu Ikeda Bank*, whichbegan full-scale provision of the service in January 2019. Going forward, we will continue to actively pursue
collaborations with regional banks, accelerating its deployment over a wide area.

Spread of smartphones

Travel andeducation
services

Overseas
remittanceElectronic
settlement

Acceptance of e-money
through“Maekyu”service

Apps andtechnology innovation

E-wallet top-up function

Progress towarda cashless society

Use of users’
consumption data

(Spread of e-money,
possible law revisions, etc.)

Provision of new settlement
functions for employees ofcustomer companies“Maekyu”service
Use ofaccumulated data

Aﬃnity with e-money“Maekyu”app

Growth of income through licensing of“Maekyu”services“Maekyu”
platform

Started handlingin January
2019

Study new initiatives for
improving user convenience incollaboration with Japan TCS

Regional
ﬁnancial
institution

Regional
ﬁnancial
institution

Regional
ﬁnancial
institution■ Further growth of“Maekyu”users■ Tool for securing human resources
and improving employee beneﬁts for“Maekyu”customer companies■ Expansion of collaboration with
regional ﬁnancial institutions■Development of new datautilization business

Negotiating for possible partnershipwith multiple ﬁnancial institutions

28

G overnanceDialogue with shareholders and investors

Status of corporate governanceIn order to achieve sustainable development for the Company and enhance shareholder value, as
well as raise the transparency and objectivity of management, we are striving to assist in thedevelopment of local communities through strengthening structures associated with corporate
governance and working to ensure compliance.

Information Disclosure Policy
Under our management philosophy, that is“to be a financial group for small and medium-sized enterprisecustomers and individual customers in the Tokyo metropolitan area that will contribute to the development of local
communities through comprehensive financial services,”the Group is committed to making timely and appropriate
disclosure and provision of information that is easy to understand, not only on financial information but also on
non-financial information such as management strategies and issues and information on risks and governance, in an
aim to win more trust and reputation from our customers, shareholders, and local communities, etc.
The Group has established the“Information Disclosure Policy”for the timely and appropriate disclosure andprovision of information that is easy to understand to stakeholders, and strives to disclose information in a fair andequitable manner.

Holding briefing sessions for investors

Basic approaches to corporate governance
The Company considers corporate governance to be one of the most important management issues and has
established the“Basic Policy on Corporate Governance”directed at the realization of the management philosophy“to be a financial group for small and medium-sized enterprise customers and individual customers in the Tokyo
metropolitan area that will contribute to the development of local communities through comprehensive financial
services”and the management policies of being“(1) A bank that sparkles, (2) A bank that rises to the challenge,and (3) A bank that brings together ideas.”In order to put in place the“system that ensures properness ofbusiness operations”of the Company and Group companies, the Board of Directors of the Company has resolved
the“Basic Internal Control Policy”and endeavors to improve its effectiveness.

Basic policy on corporate governance / Status of putting in place the internal control system

https://www.tokyo-kiraboshifg.co.jp

Outline of corporate governance system

The Group is engaged in IR activities such as holding briefing sessions for
institutional investors and private investors so that stakeholders including ourcustomers, local communities, shareholders understand the management status
and other aspects of the Group.

Organization form
Company with Audit &Supervisory Board
Results briefing (held on December 10, 2019)

Activities (timing in FY2019, etc.)
Japanese institutional investors and securities
analysts

Business results briefing (June and December) and individual meetings(as necessary)

Individual shareholders and private investors

Results briefing for private investors (July, October, January, and February)

Executive remuneration structure
Fixed remuneration
Performance-linked remuneration(short-term performance)
Performance-linked remuneration(medium- to long-term
performance)

Directors and Boardof Directors

3 outside

Audit & Supervisory Board Member
and Audit & Supervisory Board

Nomination/Remuneration
Committee

2 outside

members

1 inside

members

member

4 Audit &Supervisory Board
Members8

Directors

5

insidemembers

Chairperson of the Boardof Directors………… President

Dialogue with shareholders and investors / Status of corporate governanceG overnance3

Directors

2

insidemembers

2 outside
members

Chairperson… ………………
 One of Outside Directors

Dividend policy
The Company takes into account the public nature of its role as a bank holding company, so that as well as striving
to ensure financial soundness by maintaining appropriate internal reserves, it regards returning profits to shareholders
as a key management measures, having adopted a basic policy of implementing consistent and stable dividends.

Introduction of performance-based stock remuneration plan
Through the introduction of this plan, the Company will clarify the linkage between remuneration and theCompany’s performance and share value, and ensure that Directors will share benefits and risks due to share pricefluctuations with shareholders, thereby raising awareness of contributing to expand its performance and to improve
corporate value on a medium to long-term basis.

Total shareholder returns and comparative index trends for the past five years
The trends in“total shareholder returns”over the past five years are compared below to the total returns in the
TOPIX Sector Index (Banking industry). These“total shareholder returns”are the ratio of the revenue received dueto the share investment (dividends + capital gains) divided by the investment amount (share price) which arecalculated as shown below by dividing the revenue for each period by the share price from five periods before.
150.0%

Total shareholder
return100.0%

Comparative index:
TOPIX Sector Index(Banking industry)

50.0%
0.0%
March 2015

29

March 2016

March 2017

March 2018

March 2019

March 2020

Basic Policy on Corporate Governance・	‌The Board of Directors of the Company decides important matterssuch as management policies and strategies in accordance withapplicable laws and regulations as well as the Regulations for the
Board of Directors, and endeavors to put in place a system forsupervising the execution of duties by Directors through suchmeasures as receiving reports on the status of execution ofbusiness delegated to the Management Meeting and Directors andother important matters.
・	‌The Company strives to ensure the appropriateness of management
supervision and audit functions as well as a system for efficientbusiness execution, by effectively utilizing the management
supervisory function realized by the appointment of highly
independent Outside Directors and Outside Audit & Supervisory
Board Members and the audit function performed by Audit &Supervisory Board Members and Audit & Supervisory Board, and byenhancing the effectiveness of corporate governance. As anorganizational design for this purpose, the Company has adopted acompany with Audit & Supervisory Board, and has voluntarily
established the “Nomination/Remuneration Committee,” themajority of which consists of Outside Directors, striving to ensure
the objectivity and transparency in Directors’appointment anddecisions about their remunerations.
・	‌In order to put in place a system that ensures properness ofbusiness operations, the Board of Directors will resolve the“Basic
Internal Control Policy”and endeavor to improve its effectiveness.
・	‌In order to ensure the sound and appropriate business operationsof each Group company, the Company endeavors to conduct
suitable management of various risks as a whole group underappropriate group business management (governance).

・	‌While striving to establish corporate ethics based on its social
mission as a regional financial group, the Company endeavors toensure the soundness and appropriateness of business operations,
upholding its basic policy of fostering the corporate culture thatemphasizes compliance and is accredited by shareholders andtrusted by customers and society.
・	‌The Company takes appropriate steps to ensure that shareholders’rights are substantially secured, including putting in place anenvironment that enables shareholders to exercise their rights
appropriately. The Company will also make efforts to disclose
information in a prompt, accurate, and equitable manner in order toenable its stakeholders to accurately understand the current statusof the Company for the purpose of achieving sustainable growth of
the stakeholders and the Company.
・	‌The Company has established three action guidelines as basic
approaches to CSR, “contribution to the local economy,”“contribution to local communities,” and “initiatives forenvironmental problems,”and is committed to practicing CSR
management and contributing to the formation of a sustainablelocal community. In order to contribute to the achievement of theSDGs advocated by the United Nations, the Company has
established the“Tokyo Kiraboshi Financial Group SDG Declaration.”
Under the main themes of“environmental protection,”“contribution
to the local community,”“creation of shared value with thecustomer,”“employees’ work style reform and promotion ofdiversity,”and“dialogue with shareholders and investors,”theCompany is committed to making contributions towards therealization of a sustainable society, the aim of SDGs, byunderstanding SDGs and acting for SDGs by each officer andemployee.

30

Outline of corporate governance system

Business execution and supervisory function

The Company is a company with Audit & Supervisory Board, and the Board of Directors, Audit & Supervisory Board Members,
and the Audit & Supervisory Board supervise and audit the execution of duties by Directors. The Company believes that theappropriateness of management supervision and audit functions as well as a system for efficient business execution are ensured
by effectively utilizing the management supervisory function realized by the appointment of highly independent Outside
Directors and Outside Audit & Supervisory Board Members and the audit function performed by Audit & Supervisory Board
Members and the Audit & Supervisory Board, and by enhancing the effectiveness of corporate governance.
The main business management organizations involved in the management decision-making, execution, and supervision of theCompany are as follows.

Chart of corporate governance system(as of July 1, 2020)

General Shareholders Meeting
Appointment / Dismissal

Appointment / Dismissal

Close cooperation

Appointment / Dismissal

Audit report

Accounting Auditor

Audit & Supervisory Board Audit & Supervisory Board Members
Audit & Supervisory Board Oﬃce
Audit
Close cooperation

Board of Directors

Audit

Accounting audit

Nomination / Remuneration Committee

Audit report

Committees

Management Meeting
Internal Audit Division

Close cooperation

Compliance Committee
Risk Management Committee

Reporting / Presenting

ALM Committees

Internal audit

Corporate Planning Division

Risk Management Division

Business Strategy Division
IT Strategy Oﬃce

Collaboration Promotion Oﬃce

Reporting

Kiraboshi System, Inc.

Discussion

Kiraboshi Consulting Co., Ltd.

Kiraboshi JCB Co., Ltd.

Tokyo Kiraboshi Lease, Inc.

Subsidiaries, etc.

- Kiraboshi Service Co., Ltd.
- Kiraboshi Credit Guarantee Co., Ltd. - Yachiyo Credit Guarantee Co., Ltd.
- Kiraboshi Business Service Co., Ltd. - Kiraboshi Credit Service Co., Ltd.
- Kiraboshi Business Consulting Shanghai Co., Ltd- Kiraboshi Tech, Inc.
- KIRABOSHI BUSINESS CONSULTING VIETNAM Co., Ltd.

Kiraboshi Capital Co., Ltd.

Kiraboshi Life Design Securities Co., Ltd.

◆Initiative to improve the effectiveness of the Board of Directors

Evaluation ofbusiness feasibility
PDCA cycle

31

Nomination/Remuneration Committee

The Company has voluntarily established the Nomination/Remuneration Committee as an advisory body with theintent of securing objectivity and transparency regarding personnel matters and remuneration of Directors. The
Nomination/Remuneration Committee consists of four Directors or less (including at least two Outside Directors)
appointed by the resolution of the Board of Directors, with its chairperson being appointed out of Outside
Directors by the resolution of the Board of Directors.

Management Meeting

Under the Board of Directors, the Company has established the Management Meeting that consists of Directors,
etc. of the Company and holds one meeting in principle each week and other extraordinary meetings whenever
the need arises. The Management Meeting decides important matters other than those to be resolved by the
Board of Directors and matters delegated by the Board of Directors, and receives reports on the status of businessexecution and other important matters.

Committees

The Company has set up the“Compliance Committee,”the“Risk Management Committee,”and the“ALM
Committee”as the subordinate organizations to the Management Meeting for each area of important management
issues, and has established a system that increases expertise and agility. Each Committee meets regularly and at
any time whenever the need arises in accordance with their respective rules.

Audit and supervisory functions
Audit & Supervisory Board Member and Audit & Supervisory Board

The Company’s Audit & Supervisory Board consists of two full-time Audit & Supervisory Board Members and two part-time
Audit & Supervisory Board Members (Outside Audit & Supervisory Board Members). The Audit & Supervisory Board strives
to strengthen the audit structure by ensuring effective monitoring functions for Directors’decision-making and businessexecution. Each Audit & Supervisory Board Member conducts audits on execution of duties by Directors, internal control,and other related matters by engaging in such activities as attending the Board of Directors’meetings and other important
meetings, reviewing important approval and other documents, and conducting audits to each division of the Company andinvestigations on subsidiaries, in accordance with audit policies and plans established by the Audit & Supervisory Board.
Audit & Supervisory Board Members and the Audit & Supervisory Board are striving for effective audits by maintaining
close cooperation with the internal audit departments, the Accounting Auditor, and other relevant parties, by exchanging
opinions on priority audit issues in regular meetings with Representative Directors and other executives, or otherwise.
The Company’s internal audits have been conducted by the Internal Audit Division, a division established independently
from the rest of the Group, based on the“Medium-Term Internal Audit Plan”and the“Annual Internal Audit Plan”
approved by the Board of Directors. Results of the audit have been reported regularly to the Board of Directors.
The Company has a system in place that enables the close cooperation between audits by Audit & Supervisory Board
Members and accounting audits through attending to regular meetings and exchanging opinions and information as
appropriate. The system also ensures that internal control departments provide explanations, reports, andsupplementary materials for audits by Audit & Supervisory Board Members at regular meetings, while explanations andsupplementary materials are provided to accounting audits as necessary.

Audit by Audit & Supervisory Board Members

The Company implements Director self-evaluations with respect to the effectiveness of the Board of Directors and discusses
those results with the members of the Board of Directors to improve the effectiveness of the entire Board. During FY 2019, eachof the Directors and Audit & Supervisory Board Members (including outside members) conducted a self-evaluation in a survey
format covering ways to improve the operation of the Board of Directors, the appropriate deliberation conditions, andmanagement issues. Those results were summarized and then evaluated and analyzed by the Board of Directors. Going forward,
we will strive to further improve the effectiveness of the Board of Directors and strengthen governance.

Business
operation

The Board of Directors consists of eight Directors (including three Outside Directors). The Board of Directors has asystem in place that enables the holding of one meeting in principle each month and other extraordinary meetings
whenever the need arises in order to decide important matters such as management policies and strategies and tosupervise the execution of duties by Directors through such measures as receiving reports on the status of businessexecution and other important matters.

Internal audit

Kiraboshi Bank, Ltd.

Initiative issues

Directors and Board of Directors

Status of corporate governanceStatus of corporate governanceImprovements

Audit & Supervisory Board Members conduct audits on execution of duties by Directors, internal control, and other related
matters by engaging in such activities as attending the Board of Directors’meetings and other important meetings,
reviewing important approval and other documents, and conducting audits to each division of the Company andinvestigations on subsidiaries, in accordance with audit policies and plans established by the Audit & Supervisory Board.
Audit & Supervisory Board Members and the Audit & Supervisory Board are striving for effective audits by maintaining
close cooperation with the internal audit departments, the Accounting Auditor, and other relevant parties, by exchanging
opinions on priority audit issues in regular meetings with Representative Directors and other executives, or otherwise. The
Company has elected one Substitute Audit & Supervisory Board Member to prepare for the case where the number ofAudit & Supervisory Board Members falls below the number required by laws and regulations. In addition, two assistants
to Audit & Supervisory Board Members are assigned to support audits by Audit & Supervisory Board Members.

Accounting audit

The Group’s accounting audit is conducted by Ernst & Young ShinNihon LLC.
32

Status of putting in place the internal control system
Under the Companies Act and the Regulation for Enforcement of the Companies Act, in order to put in place the“system that ensures properness of business operations”of the Company and Group companies, the Board of
Directors of the Company has resolved the“Basic Internal Control Policy”as follows and endeavors to improve its
effectiveness. We will continue to review and enhance the content as appropriate.
1.	‌System to ensure that Directors and employees execute theirduties in compliance with laws and regulations and the Articles ofIncorporation(1)‌The Company will establish the Basic Compliance Policy toensure that officers and employees of the Company and Group
companies comply with laws and regulations, the Articles ofIncorporation, and social norms, and the proper and soundbusiness operations. In addition, the Basic Compliance
Regulations will be established as specific action guidelines forcompliance.
(2)‌The Company will establish the Compliance Committee andthe division supervising compliance to have comprehensive
monitoring and management of the status of compliance by
the Company and Group companies and to put in place asystem for compliance.
(3)‌The Company will establish the Internal Audit Division that is
independent of the departments to be audited, and theInternal Audit Division will regularly audit the status of business
operations by the Company and Group companies and report
the audit results to the Board of Directors.
(4)‌In accordance with the Whistleblowing Management Rules, theCompany will set up an organization for consultation andreceiving whistleblowing reports about violations of laws andregulations by officers and/or employees, handle theconsultations and reports properly, and put in place a system
to protect whistleblowers and relevant parties.
(5)‌The Company will establish the Customer Protection
Management Policy and the Conflict of Interest Management
Policy, put in place a system for the improved protection andconvenience of customers of the Company and Group
companies, and put in place a system for managing conflicts ofinterest to prevent undue harm to the customers’interest.
(6)‌In accordance with the Basic Policy on Dealing with Antisocial
Forces which is established as a basic policy for the eliminationof any relationship with antisocial forces, the Company will put
in place a system for eliminating relationships with antisocial
forces that threaten the order and safety of civil society. The
Company will also systematically respond to unreasonable
demands, etc. from antisocial forces.
(7)‌In accordance with the Insider Trading Prevention Management
Rules, the Company will put in place a system to appropriately
manage important undisclosed facts about transaction partnersof the Company and the Group companies that are learned in
the course of business.
2.	‌System for retaining and managing information on the executionof duties by Directors
The Company will establish a structure for retaining and managing
information related to the execution of duties by Directors for aconsiderable period of time. The Company will also prepare andretain the minutes of important meetings involving the Directors
such as the General Shareholders Meetings and the Board of
Directors’ meetings in accordance with the Document
Management Regulations.
3.	‌Regulations and other systems to the management of the risk ofloss(1)‌The Company will establish the Group Basic Policy for Risk
Management in order to establish the soundness in the
management of the Company and the Group companies andto secure proper profits appropriate to various risks.
(2)‌In order to ensure the appropriateness and soundness ofbusiness operations of the Company and the Group
companies, the Company will establish the Comprehensive
Risk Management Regulations and conduct proper risk
management corresponding to the type and extent of risks.
(3)‌The Company will establish the Risk Management Committee
and the division supervising risk management to manage
various risks in the Company and the Group companies and to
put in place a system for controlling the risk of loss.
(4)‌The Company will establish a system in which the Internal
Audit Division verifies the appropriateness and effectiveness of
the risk management structure at the division supervising risk
management, and strive to enrich and strengthen the risk
management structure.
(5)‌In order to quickly restore business operations in the event ofa crisis, the Company will establish the Basic Policy on Business

33

Continuity and appropriately put in place the structure forcrisis management.
4.	‌System to ensure that Directors execute their duties efficiently(1)‌The Company will set management targets, establish
management plans, and conduct business management basedon appropriate methods.
(2)‌The Company will establish the Regulations for the Board of
Directors, manage the Board of Directors appropriately, andset up the Management Meeting, etc., and the Board of
Directors will delegate the decisions on certain matters to theManagement Meeting, etc. The Management Meeting, etc. will,in addition to making decisions on the delegated matters,
discuss matters to be resolved by the Board of Directors
beforehand in order to assist the Board of Directors in its
decision-making.
(3)‌The Company will stipulate the rules for duties, authorities, anddecision-making by formulating the Organization Regulations,
the Rules for Division of Duties, and the Job Authority Rules, toensure that Directors and all officers and employees execute
their duties efficiently.
5.	‌S ystem to ensure properness of business operations of thecorporate group comprising the Company and the Group
companies(1)‌Based on the management philosophy, the Company and theGroup companies will share business strategies as a corporategroup and conduct management on a group-wide basis.
Regarding the management of the Group companies by theCompany, the Company will establish the Group Business
Management Regulations that stipulate basic rules fordiscussion and reporting on important matters such as
management plans of subsidiaries, etc., and put in place asystem to ensure the sound, appropriate, and efficient
operation of the Group.
(2)‌The Company and the Group companies will put in place theinternal control structure for financial reporting of the Company
and the Group companies based on the Basic Policy for theInternal Control Over Financial Reporting, and ensure theappropriateness and credibility of financial reports.
(3)‌The Company and the Group companies will take appropriate
actions in accordance with laws and regulations regarding
intra-group transactions, and will conduct appropriate
management with an emphasis on ensuring the soundness of
the Group’s business operations, based on the Basic Policy for
Intra-Group Transactions, Etc. and the Basic Policy for IntraGroup Business Alliance.
(4)‌The Company will establish the Basic Policy on Related Party
Transactions regarding transactions made between the parties
stipulated in Article 8, paragraph 17 of the Regulation on
Terminology, Forms, and Preparation Methods of Financial
Statements such as the Company’s officers, the Group
companies (consolidated subsidiaries and equity method
affiliates), and major shareholders (related party transactions),
and will ensure the soundness and appropriateness of eachcompany’s business operations as well as the common
interests of shareholders in accordance with laws andregulations.
(5)‌The Internal Audit Division will conduct audits to ensure theproper business operations based on the Basic Policy on
Internal Audits and provide necessary advice to optimize theoperations.
(6)‌The Company will put in place a system for immediately
reporting to the Company’s Directors when officers or
employees of the Company or the Group companies discovermaterial violations of laws and regulations or other importantmatters related to compliance within the Group companies. In
addition, the Company will clearly state the standards forreporting to the Company by its subsidiaries and put in place asystem for reporting the matters necessary for the
management of the Group.
(7)‌The Company will put in place a system in which no officers or
employees who have reported in accordance with paragraph(6) above will be subject to disadvantageous treatment due tothe reporting.
6.	‌M atters concerning the assignment of employees who assist
duties of Audit & Supervisory Board Members

The Company will assign employees who assist duties of Audit &Supervisory Board Members (hereinafter the“Assistants”) to
increase the efficiency and effectiveness of their duties.
7.	‌M atters concerning the independence of the Assistants
mentioned in item 6 from Directors(1)‌Appointment, transfer, performance appraisal, and disciplinary
action of the Assistants will require the prior consent of the
Audit & Supervisory Board Members.
(2)‌The Company will put in place a system that prevents theAssistants from being in charge of execution of business inaddition to the assisting duties.
8.	‌S ystem for reporting by Directors and employees to Audit &Supervisory Board Members and other systems involving reportingto Audit & Supervisory Board Members(1)‌When Directors and employees of the Company and theGroup companies discover that there is a risk of significant
damage to the Company and the Group companies, they willreport the fact to Audit & Supervisory Board Members inaccordance with the Regulations on Reporting to Audit &Supervisory Board Members. In addition to matters stipulated
in laws and regulations and rules, Audit & Supervisory Board
Members may request reports from Directors, employees ininternal audit departments, and other persons if necessary. No

person who has reported to Audit & Supervisory Board
Members, etc. will be subject to disadvantageous treatment
due to the reporting.
(2)‌The Company will put in place a system for its internal audit
departments to report to Audit & Supervisory Board Members
the results of internal audits on the Company and the Group
companies.
9.	‌Other systems to ensure that Audit & Supervisory Board Members
perform audits effectively(1)‌The Company will put in place a system in which audits are
effectively conducted through the cooperation including theexchange of opinions between Audit & Supervisory Board
Members and the Accounting Auditor, Representative
Directors, risk management departments, audit departments,
and in-house divisions responsible for internal control
functions.
(2)‌The Company will promptly prepay or reimburse such
expenses, or process such obligations that arise with regard to
execution of duties by Audit & Supervisory Board Members if
requested by them. The Company will bear the costs for
obtaining advice from external experts if the Audit &Supervisory Board Members consider it necessary.

Status of corporate governanceStatus of corporate governanceOutside Directors and Outside Audit & Supervisory Board Members
Functions, roles, and appointment of Outside Directors and Outside Audit & Supervisory Board Members
Outside Directors have a wealth of experience and advanced insights as a corporate manager, certified public accountant, ormanaging director of the Chamber of Commerce and Industry. They provide pertinent advice and recommendations from an
independent standpoint regarding the overall management of the Company, and are responsible for strengthening the decisionmaking and supervisory functions about the management of the Company. Outside Audit & Supervisory Board Members are
responsible for strengthening the audit function on the execution of duties by Directors based on their specialized knowledge
as an attorney or certified public accountant. The following“standards of independence regarding outside officers”areestablished for and govern the appointment of Outside Directors and Outside Audit & Supervisory Board Members based on
the functions and roles that outside officers should have in corporate governance.

Standards of independence regarding outside officers
The Company and its subsidiary banks (hereinafter the“Group”)
determine independence regarding candidates for Outside Director
and Outside Audit & Supervisory Board Member based on thefollowing standards.
1. (1)‌The person is not an Executive Director, Executive Officer, or amanager or other employee (collectively hereinafter the“Business Executors, etc.”) of the Group, and was not a
Business Executor, etc., of the Group within 10 years prior toappointment.
However, for candidates for Outside Audit & Supervisory Board
Member, the requirement of not having been a Non-executive
Director (Note 1) of the Group within 10 years prior toappointment is added.
(2)‌For candidates for Outside Director that were Non-executive
Directors or Audit & Supervisory Board Members of the Group
within 10 years prior to appointment, these persons must nothave been a Business Executors, etc., of the Group within 10
years prior to appointment to that position.
For candidates for Outside Audit & Supervisory Board Memberthat were Audit & Supervisory Board Members of the Group
within 10 years prior to appointment, these persons must nothave been Business Executors, etc., or Non-executive Directorsof the Group within 10 years prior to appointment to that
position.
(3)‌The party is not a spouse or a relative to within the second
degree of an officer, etc. (Note 2), manager or other important
employee (excluding those who are officers, etc.) of the Group.
2.	‌The person is not a major shareholder (Note 3) of the Company
or an officer, etc., or employee (excluding those who are officers,etc.) of a company of which the Group is a major shareholder.
3. (1)‌The person does not hold the Group as a major transaction
partner (Note 4) and is not the parent company or a significant
subsidiary, and if that person is a company, is not a Business
Executor, etc., of said company and was not a Business
Executor, etc., within the past three years.
(2)‌The person is not a major transaction partner of the Groupand is not the parent company or a significant subsidiary, and ifthat person is a company, is not a Business Executor, etc., ofsaid company and was not a Business Executor, etc., within thepast three years.
(3)‌The person is not an employee, etc., of an organization thatreceives donations, etc., over a certain amount (an average of¥10 million per annum for the past three years or 30% or moreof average annual expenses of said organization, whichever ishigher) from the Group.
4.	‌The person is not an officer, etc., of a company, parent companyof said company, or subsidiary of said company that receives
officers, etc., from the Group.
5.	‌The person is not the Accounting Auditor of the Group or an
employee, etc., of said Accounting Auditor and was not
responsible for the audit operations of the Group within the past
three years as said employee, etc.
6.	‌The person is an attorney, certified public accountant, or otherconsultant, etc., who has not received an average of ¥10 million
or more per annum for the past three years aside from officer
remuneration in cash or other property as profit from the Group.
Additionally, the person is not an employee, etc., of an advisory
firm such as a legal office, etc., that holds the Group as a majortransaction partner (an advisory firm that received payment fromthe Group of 2% or more of its consolidated net sales on averageover the past three fiscal years).
7.	‌T he person is not a person with which a constant, essential
conflict of interest with general shareholders of the Company may
arise for reasons other than those considered above.
(Note 1) ‌A“Non-executive Director”refers to a Director that is not
an Executive Director.
(Note 2) ‌An“officer, etc.,”refers to a Director (including an Outside
Director), Audit & Supervisory Board Member (including an
Outside Audit & Supervisory Board Member), Executive
Officer, Counselor, and Advisor.
(Note 3) ‌A“major shareholder”is a person or company, etc., that
directly or indirectly possesses voting rights equal to 10%
or more of total voting rights as of the end of the mostrecent fiscal year.
(Note 4) ‌A “major transaction partner” is determined on thestandard of 2% or more of annual consolidated net sales(annual consolidated ordinary revenue for the Company) asof the end of the most recent fiscal year.

34

Risk management system
The Group considers the risk management as one of the top priority management issues and, in order to ensure
the sound and appropriate business operations of each Group company, endeavors to conduct suitable
management of various risks as a whole group under appropriate group business management (governance). The
Group has established the Risk Management Committee that discusses the establishment, revision, andabolishment of the Risk Management Regulations or other regulations and considers formulation of policies for thedevelopment and establishment of the Group’s risk management system. In addition, the Group has established
the Risk Management Division as the division supervising the risk management in the Group and put in place therisk management system.

Group Basic Policy for Risk Management

Operational risk management
Operational risk means a wide range of risks related to business operations in general, including the risk of
incurring losses caused by business process, activities of officers or employees, improper or non-functional systems,
or external events.
The Group categorizes the operational risk according to its characteristics into administrative risk, system risk, legalrisk, or other risk. The Group has designated divisions responsible for each risk and an integrated management
division, and puts in place a risk management system that covers business operations in general.

◦Chart of risk management system

Board of Directors

1.	‌Considering the risk management as the top priority issue in the management of the Group, the Group will recognize
the importance of risk management of the entire Group, including management of risks specific to the group systemsuch as outline of the characteristics of various risks and the spread of risks. The Group will conduct suitable
management by establishing the management system for each type of risk.
2.	‌The Group will manage subsidiaries so that the appropriate risk management is performed by them from theviewpoint of ensuring soundness.

Kiraboshi Bank, Ltd.

Audit & Supervisory Board Members
Audit & Supervisory Board

Instructions /Management

Management Meeting

Tokyo Kiraboshi Lease, Inc.
Kiraboshi System, Inc.

Risk Management Committee

Reporting /Discussion

Kiraboshi Consulting Co., Ltd.

Risk Management Division

Kiraboshi JCB Co., Ltd.
Kiraboshi Capital Co., Ltd.

Integrated risk management
Integrated risk management within the Group means to manage the risk in the Group as a whole, by integrating
the management of various risks held by the Group companies, comprehensively identifying risks specific to thegroup system that individual Group companies alone cannot deal with, such as the spread of risk within the Group,and comparing the risk with the Group companies’financial capability (net assets).
The Group estimates the maximum potential loss involving credit risk, market risk, and operational risk based on
the measured amount of risk. Then, in order to use limited capital effectively, the Group allocates risk capital byusing core capital as allocation source and compares the capital with the actual amount of risk to confirm that theGroup has not taken excessive risks in comparison with its financial capabilities, thereby maintaining and ensuring
the soundness of management.

Credit risk management
Credit risk means the risk of incurring losses due to decreased or lost asset value caused by a deterioration in thefinancial condition of the parties to which the credit has been granted.
The Group strives to maintain the soundness of its credit portfolio by avoiding concentration risk through suchmeasure as keeping the percentage of credit in the total amount of credit below a certain level for large
concentration risk that an excessive amount of credit is made available to a specific party or for industry
concentration risk that credit is concentrated to a specific industry.

Market risk management
Market risk means the risk of incurring losses due to fluctuations in the value of assets and liabilities and in theamount of generated revenue as a result of fluctuations in various market risk factors such as interest rates, stock
prices, and exchange rates. It is roughly divided into interest rate risk, price fluctuation risk, and exchange rate risk.
The Group controls the amount of market risk to avoid becoming excessive through such measures as setting limits
for holdings and losses, monitoring the status of compliance, measuring the amount of risk such as VaR, andcomparing it with the allocated risk capital.
In addition, the Group evaluates market risk comprehensively using the stress scenarios that reflect events that
could have a significant impact on the Group or other means.

Liquidity risk management
Liquidity risk is the risk of incurring losses caused by difficulty in securing the necessary funds or being forced toraise funds at a significantly higher interest rate than usual due to a mismatch between investment and funding
periods or an unexpected outflow of funds (cash flow risk), and the risk of incurring losses caused by inability to
trade in the market or being forced to trade at a significantly unfavorable price than usual due to market turmoil orother factor (market liquidity risk).
The Group takes every possible measure to manage liquidity risk through such measures as appropriately
managing the status of fund investment and procurement, maintaining stable funding, and holding above a certain
amount of assets that can be liquidated in a short period of time as current assets.

35

Subsidiaries, etc.

Status of putting in place the risk management system

Risk management system

G overnance

Credit risk

Market risk

Liquidity risk

Operational
risk

Kiraboshi Life Design Securities Co., Ltd.

Trial implementation of Risk Appetite Framework
The Risk Appetite Framework (RAF) is a framework for clarifying the risk appetite for the sake of achieving businessstrategies and financial plan, thereby conducting business management and risk management. Introduction of RAF
improves the transparency of the management plans, enables a company to seek more profit opportunities andconduct business management while controlling risks. The Group has started a trial implementation of RAF for the
purpose of achieving sustainable growth with a good balance of income, risk, and capital.

◦Construction of overall RAF

Risk appetite policy
Stress test of medium tolong-term simulation basedon the Medium-TermBusiness Plan
“forward-looking”()

Stress test of risk capital
allocation management“backward-looking”()▪Verify allocation of management resources▪Verify sustainability of the business model and monitor early warning risk signals

Initiatives for strengthening cyber security management
Considering the diversifying threats of cyber-attacks as one of the risks, we are stepping up efforts on cybersecurity measures. We have established a specialized organization for cyber security, and strengthened themonitoring structure to prevent damage. We also strive to raise awareness of employees by regularly delivering
emails that mimic targeted attack emails or other means.

36

G overnance

Basic Policy on Dealing with Antisocial Forces

Status of putting in place the compliance system
The Group regards compliance as one of the top priority management issues, strives to establish corporate ethics
based on its social mission as a regional financial group, and endeavors to ensure the soundness andappropriateness of business operations, upholding its basic policy of fostering the corporate culture thatemphasizes compliance and is trusted by shareholders, customers, and society. The Group also has established theCompliance Committee to propose measures for the compliance-related matters of the Group and to strengthen
the compliance function. In addition, the Group has assigned the officer in charge of the Risk Management Division
as the chief compliance officer, established the Risk Management Division as the division supervising compliancerelated matters, and put in place the compliance system.

Kiraboshi Bank, Ltd.

Sales offices and headquarters divisions

Audit & Supervisory Board Members
Audit & Supervisory Board

Instructions /Management
Management Meeting

Reporting /Discussion
Compliance Committee

Employees

Compliance officer
Compliance administrator

Tokyo Kiraboshi Lease, Inc.

Subsidiaries, etc.

◦Chart of compliance system

Board of Directors

Kiraboshi System, Inc.
Kiraboshi Consulting Co., Ltd.
Kiraboshi JCB Co., Ltd.
Kiraboshi Capital Co., Ltd.

Risk Management Division

Kiraboshi Life Design Securities Co., Ltd.

Basic Compliance Policy
The Group regards compliance as one of the top priority management issues, strives to establish corporate ethics
based on its social mission as a regional financial group, and has established its basic policy to foster the corporate
culture that emphasizes compliance and is accredited by shareholders and trusted by customers and society. The
Group stipulates the following“Action Principles”to implement the basic policy.
1. Social responsibility and public mission of bank	We will recognize the importance of our social responsibility and public mission at all times and strive to win theunwavering trust through sound business operations.
2. Customer-first principle
	We will consider customers first, satisfy customer needs, leverage our creativity and ingenuity, and provide highquality financial services. We will live up to customers’trust and always pursue with a sincere attitude whatcustomers expect us to do.
3. Strict compliance with laws, regulations, and rules
	We will strictly comply with all laws, regulations, and rules and carry out sincere and fair corporate activities that do
not violate social norms.
4. Developing together with local communities
	We will contribute to the economic and cultural development of prosperous and vibrant local communities throughour financial services.
5. Respect for human rights of employees, etc.
	We will respect human rights and individuality of employees and ensure a safe and comfortable working
environment.
6. Elimination of relationship with antisocial forces	We firmly confront antisocial forces that threaten the order and safety of civil society and ensure to eliminate any
relationship with them.

Status of putting in place a system for eliminating antisocial forces
In order to eliminate any relationship with antisocial forces, the Company has established the“Basic Policy on
Dealing with Antisocial Forces”and the“Basic Rules on Dealing with Antisocial Forces”and puts in place the system
for this purpose. The Risk Management Division has the centralized function to control information on antisocial
forces, and the Company and the Group companies strive to collect and share information on antisocial forces.

37

Compliance system

Compliance system
The Group eliminates and will eliminate any relationship whatsoever with antisocial forces that threaten the order andsafety of civil society, will comply with the following basic policy, and ensure sound and responsible business operations.
1.	Deal with antisocial forces that threaten the order and safety of civil society as an organization and maintain a firm
attitude against them.
2.	Endeavor to strengthen close cooperation with the police and other external specialized agencies in preparation for
unreasonable demands by antisocial forces even under normal circumstances.
3.	Eliminate any relationship whatsoever including transactions with antisocial forces.
4.	Reject firmly any unreasonable demands from antisocial forces, including taking civil or criminal actions.
5.	Reject firmly any requests for providing funds or benefits to antisocial forces.

Group Basic Policy for Protection of Personal Information
The Group recognizes that it is its social responsibility to handle personal information of customers in a proper and strict manner. It
has established the following basic policy and will do everything possible to protect personal information by complying with the policy.
1. Compliance with relevant laws and regulations
	The Group will comply with personal information protectionrelated laws and regulations and other norms with respect
to the protection of customers’personal infor-mation.
2. Proper acquisition of personal information
	The Group will acquire customers’personal information in a
lawful and fair manner to the extent necessary for business.
3. Purpose of use
	The Group will notify or announce the purpose of using
personal information and will use it only within the scope ofthat purpose unless otherwise stipulated in laws andregulations, and will not use it for any other purpose.
4. Contracting-out	When contracting out the handling of personal information,
the Group will appropriately supervise the contractor toensure that the personal information of customers will besafely managed.
5. Provision to third parties
	The Group will not provide personal information to any third
party without the consent of the person who provided it orunless stipulated in laws and regulations.
6. Responding to customers’inquiry, etc.
	The Group will establish the procedures for disclosure,correction, and deletion of personal data, and respondsincerely to questions, opinions, and complaints regarding
the handling of personal information, and inquiries regarding
its contents and corrections.
7. Security control measures	When controlling personal information, the Group will takeappropriate security control measures to prevent loss,
falsification, and leakage, and put in place a re-sponsibility
system necessary for protecting personal information.
8. Continuous improvement
	The Group will continuously review and strive to improve themanagement system and initiatives to protect personal
information. In addition, the Group will educate all officers
and employees to ensure that they understand theimportance of protecting personal information and handle
personal information appropriately.

Financial ADR system
Kiraboshi Bank, Ltd. of the Group has established a specialized
department for various consultations and complaints from
customers, and contracted with the“Japanese Bankers Association
Consultation Office,” a designated dispute resolution body, tofacilitate the quick and flexible solution of issues.

The designated dispute resolution bodywhich Kiraboshi Bank, Ltd. has contracted withJapanese Bankers
Association

Contact: Japanese Bankers Association

Consultation Oﬃce

Telephone number: 0570-017109
or 03-5252-3772

Whistleblowing system
The Group has established the“Hotline System”as a mechanism for responding properly to an employee, dispatchedworker, part-time worker, or other staff who initiates whistleblowing or wishes to have a consultation about complianceissues (including harassment).
Kiraboshi Bank, Ltd. has established a contact point for whistleblowing in the Compliance Section of Risk Management
Department and in the law firm which its legal counsel works for.
This whistleblowing system is strictly stipulated in the Group’s internal regulations as to the confidential treatment of awhistleblower’s identity and the prohibition of disadvantageous treatment of a whistleblower.

Putting the“customer feedback”to practical use
At Kiraboshi Bank, Ltd. we collect, manage and analyze thecustomer feedback and strive to improve our services.
In addition, the customer feedback is centrally managed at theCustomer Relations Center, and information is shared with
officers.

OﬃcersKiraboshi Bank, Ltd.
Collecting and managing
Improvements

Customers

Analyzing

Initiatives for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT)The Group considers the prevention of money laundering, etc. as one of the most important management issues, and its
basic policy is to establish an effective management system to maintain the public trust, while making efforts toconstantly verify and improve the system.
In recognition of its importance, we have put in place a system to ensure the effectiveness and appropriateness of themoney laundering prevention system.

38

Officers(As of July 1, 2020)

ChairmanPresident

Keizo Ajioka

Deputy President

Hisanobu Watanabe

Senior Managing Director

Yoshikazu Kitagawa

Director

Satoru Nobeta

Hidenori Tsunehisa

Director (Outside Director)

Ryuji Miura

Full-time Audit & Supervisory Board Member

Yukio Kasai

Director (Outside Director)

Yuki Takahashi

Full-time Audit & Supervisory Board Member

Toru Narata

Director (Outside Director)

Shoji Nishio

Audit & Supervisory Board Member (Outside Audit & Supervisory Board Member)

Nobuko Inaba

Audit & Supervisory Board Member (Outside Audit & Supervisory Board Member)

Kayo Todo

Names of female officers are in red.

Organization Chart(As of July 1, 2020)

General Shareholders Meeting
Audit & Supervisory
Board

Audit & Supervisory
Board Members
Audit & Supervisory
Board Office

Board of Directors
Nomination/Remuneration
Committee
Management Meeting
Committees- Compliance Committee- Risk Management Committee- ALM Committee

Internal Audit
Division

Corporate Planning Division

Business Strategy Division
IT Strategy Office

Collaboration
Promotion Office

Risk Management Division

Consolidated Financial Statements
Tokyo Kiraboshi Financial Group, Inc. and its Consolidated Subsidiaries
March 31, 2020 and 2019

Consolidated Balance Sheets

AssetsCash and due from banks........
Call loans and bills bought.......
Monetary claims bought..........
Trading account securities.......
Money held in trust.................
Securities...............................
Loans and bills discounted......
Foreign exchanges..................
Lease receivables andinvestments in leases..............
Other assets...........................
Tangible fixed assets...............
Buildings, net......................
Land...................................
Leased assets, net...............
Construction in progress.......
Other tangible fixed assets...
Intangible fixed assets.............
Software..............................
Leased assets.....................
Other intangible fixed assets.
Retirement benefit asset..........
Deferred tax assets.................
Customers' liabilities for
acceptances and guarantees...
Allowance for loan losses........
Total assets
Liabilities
Deposits.................................
Negotiable certificates of deposit....
Call money and bills sold.........
Payables under securities
lending transactions................
Borrowed money.....................
Foreign exchanges..................
Bonds payable........................
Borrowed money from trust account....
Other liabilities........................
Provision for bonuses..............
Provision for bonuses for directors(and other officers)....................
Provision for share-based compensation....
Retirement benefit liability.......
Provision for retirement benefits
for directors (and other officers)....
Provision for point card certificates....
Provision for loss on interest repayment....
Provision for reimbursement of deposits....
Provision for loss on cancellationof system contracts..................
Provision for contingent loss....
Deferred tax liabilities..............
Acceptances and guarantees....
Total liabilities
Net assets
Share capital..........................
Capital surplus........................
Retained earnings...................
Treasury shares......................
Total shareholders' equity
Valuation difference on
available-for-sale securities.....
Deferred gains or losses on hedges....
Revaluation reserve for land.....
Foreign currency translation adjustment....
Remeasurements of defined benefit plans....
Total accumulated othercomprehensive income.......
Share acquisition rights......
Non-controlling interests....
Total net assets...................
Total liabilities and net assets....

Millions of Yen
2020
2019

Thousands of
U.S. Dollars
2020¥538,902
2,513
74,1991,006
651
948,0423,760,834
5,593¥402,718
2,308
59,326973―
1,095,059
3,696,398
5,984$4,951,778
23,091
681,788
9,243
5,981
8,711,219
34,556,960
51,392

17,622
93,27358,41917,11933,192
2,262
439
5,404
3,771
1,998
256
1,516
13,234
11,251―
47,52560,266
19,69635,451
1,538
226
3,354
3,097
2,054
116
926
14,128
5,940

161,922857,052
536,791
157,300
304,989
20,784
4,033
49,65534,65018,3582,352
13,929121,602103,381

4,905
5,596
45,070（26,112） （303,923）（33,076）¥ 5,501,145 ¥ 5,373,212 $50,548,056¥4,631,187
7,300
217,692¥4,527,089
16,100113,329$42,554,323
67,0772,000,294

256,620
42,177232
4,200―
37,291
1,637

344,918
43,566533―
245
24,561
1,701

2,357,989
387,549
3
38,592―
342,653
15,041

183
139
65

158
82
65

1,681
1,277
597

23
40
8
1,318

20
39
8
1,351

211
367
73
12,110

935
659
60
4,905
¥ 5,206,683

―
656
61
5,596
¥ 5,080,087

8,591
6,055
551
45,070$47,842,350¥27,500 ¥27,500 $252,687
150,684
150,473
1,384,581
114,641
109,053
1,053,395（804）（7,479）（814）
292,010286,223
2,683,175
5,629
41
（242）
4
（3,038）

7,923
―
（242）
8
（1,250）51,722376（2,223）36（27,915）

2,394
6,440
21,997
56
56
514
404
―
―
294,462
293,124
2,705,706¥5,501,145 ¥ 5,373,212 $50,548,056

Consolidated Income Statements and Consolidated
Statements of Comprehensive Income
Consolidated Income Statements

Ordinary income
Interest income....................
Interest on loans and discounts....
Interest and dividends on securities....
Interest on call loans and bills bought....
Interest on deposits with banks....
Other interest income........
Trust fees............................
Fees and commissions.........
Other ordinary income..........
Other income.......................
Recoveries of written off receivables....
Other...............................
Ordinary expenses
Interest expenses.................
Interest on deposits...........
Interest on negotiablecertificates of deposit........
Interest on call money and bills sold....
Interest on payables under
securities lending transactions....
Interest on borrowings and rediscounts....
Interest on bonds..............
Other interest expenses.....
Fees and commissions payments....
Other ordinary expenses.......
General and administrative expenses...
Other expenses....................
Provision of allowance for loan losses....
Other...............................
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets....
Gain on step acquisitions......
Gain on bargain purchase.....
Extraordinary losses
Loss on disposal of non-current assets....
Impairment loss...................
Provision for loss on cancellationof system contracts.................
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent¥¥Millions of Yen
2020
2019
94,031 ¥
78,77756,98958,49743,80843,07911,94014,121
38
36
299
300
903
960
156
107
16,88016,585
6,762
872
13,241
2,715
87
91
13,153
2,623
75,297
91,683
2,381
3,522
1,094
1,192

Thousands of
U.S. Dollars
2020$ 864,017
523,651
402,536
109,712
349
2,747
8,297
1,433
155,104
62,133
121,666
799
120,858
842,442
21,87810,052

1
606

2
817

9
5,568

584
76
7
9
3,045
1,621
55,814
28,821
11,17817,643
2,347
6,975
6,315
523
136
1,065
59
70

1,340
88
―
81
3,286
1,200
57,502
9,785
3,732
6,053
3,480
0
0
―
―
111
111
―

5,366
698
64
82
27,97914,894
512,854
264,825
102,710
162,115
21,56564,09058,026
4,805
1,249
9,785
542
643

935
8,256
3,861
（3,264）597
7,659
2
7,657 ¥

8,591
―
3,368
75,861
1,079
35,477（2,655）（29,991）（1,575）
5,485
4,944
70,37530
184,914 $70,357

Corporate Data of Tokyo Kiraboshi Financial Group / Consolidated Financial Statements

Corporate Data of Tokyo Kiraboshi Financial Group

Consolidated Statements of Comprehensive Income
Thousands ofMillions of Yen
U.S. Dollars
2020
2019
2020
7,659 ¥4,944 $70,375（535）（37,563）（4,088）

Profit¥
Other comprehensive income
Valuation difference on availablefor-sale securities..................
（2,293）
2,084（21,069）
Deferred gains or losses on hedges....
41376―Foreign currency translation adjustment....
（4）
（1）
（36）
Remeasurements of defined
benefit plans, net of tax........
（1,788）（2,396）（16,429）
Share of other comprehensive
income of entities accounted
for using equity method........
（404）
（44）
（222）
Comprehensive income
3,571
4,408
32,812Comprehensive income attributable toComprehensive income attributableto owners of parent..................
3,611
4,364
33,180Comprehensive income attributable
to non-controlling interests........
（40） ¥43 $
（367）
¥

U.S. dollar amounts are the yen equivalent, calculated for convenience only, at the rate of ¥108.83 = U.S. $1.

3940

Consolidated Statements of Cash Flows

Consolidated Statements of Changes in Net Assets
Millions of Yen
2020
Accumulated other comprehensive income

Shareholders' equity

Total
Share
NonValuation Deferred
Foreign
Total
Remeasurements accumulated acquisition controlling Total net
Revaluation
Share Capital Retained Treasury
difference on gains orcurrency
assetsshareholders'of defined benefit otherreserve forrights interests
capital surplus earnings sharesavailable-for- losses ontranslation
equityplans
comprehensive
landsale securities hedges
adjustment
incomeBalance at beginning of period ...... 27,500 150,473 109,053 （804）286,223
7,923
8 （1,250） 6,44056404 293,124― （242）
Changes during period .................
Purchase of shares of consolidated subsidiaries ...
214
（0）
213
213
Dividends of surplus ...................
（2,068）（2,068）（2,068）
Profit attributable to owners of parent ...
7,657
7,657
7,657
Purchase of treasury shares ........
（26） （26）（26）
Disposal of treasury shares .........
（4）
15
11
11
Change in equity of subsidiaries...
――
Net changes in items other than shareholders' equity ...
（2,294）41（4）（1,788）（4,045）―― （404）（4,450）
Total changes during period .........
210
5,587
（10） 5,787 （2,294）
41（4）（1,788）（4,045）― （404） 1,337――
Balance at end of period............... 27,500 150,684 114,641 （814）292,010
5,629
41 （242）
4 （3,038） 2,394
56― 294,462

Balance at beginning of period .............
Changes during period ..................
Purchase of shares of consolidated subsidiaries ....
Dividends of surplus ...................
Profit attributable to owners of parent ....
Purchase of treasury shares ........
Disposal of treasury shares .........
Change in equity of subsidiaries ....
Net changes in items other than shareholders' equity ...
Total changes during period ...............
Balance at end of period ...............

Millions of yen
2019
Shareholders' equity
Accumulated other comprehensive income
NonValuation
Foreign
Total accumulated ShareTotal net
Total
Revaluation
Remeasurements
acquisition controlling
Share
Capital Retained Treasury
difference on
currency
otherassetsshareholders'
reserve forof defined benefit
capital surplus earnings sharesavailable-fortranslation
comprehensive rights interests
equitylandplanssale securities
adjustment
income27,500 150,576 106,206（625）283,657
6,075
（242）
10
1,146 6,989
101
271 291,020（1）（2,066）
4,914
（7）
（93）

（1）
（2,066）4,914（231） （231）
52
45
（93）

（102） 2,847－
27,500 150,473 109,053

Shareholders' equity（178） 2,566（804）286,223

1,848
1,848
7,923

－
－
（242）

（1）（2,396） （549）（1）（2,396） （549）
8 （1,250） 6,440

（45）
（45）
56

（1）
（2,066）
4,914
（231）
45
（93）
133
（461）
133
2,104
404 293,124

Thousands of U.S. Dollars
2020
Accumulated other comprehensive income

Total
Share
NonValuation Deferred
Foreign
Total
Revaluation
Remeasurements accumulated acquisition controlling Total net
Share Capital Retained Treasury
difference on gains orcurrency
assetsshareholders'
reserve forof defined benefit otherrights interests
capital surplus earnings sharesavailable-for- losses ontranslation
equitylandplanscomprehensive
sale securities hedges
adjustment
incomeBalance at beginning of period ............. 252,687 1,382,642 1,002,049 （7,387）2,630,000 72,801
73 （11,485） 59,174
514
3,712 2,693,411－ （2,223）
Changes during period .................
Purchase of shares of consolidated subsidiaries .....
1,966
（0）
1,957
1,957
Dividends of surplus ...................
（19,002）（19,002）（19,002）
Profit attributable to owners of parent.....
70,35770,35770,357Purchase of treasury shares ........
（238） （238）（238）
Disposal of treasury shares .........
（36）
137
101
101
Change in equity of subsidiaries ....
－－Net changes in items other than shareholders' equity.....
（21,078）376（36）（16,429）（37,168）－－ （3,712）（40,889）
Total changes during period ...............
1,929 51,336（91） 53,174 （21,078）
376（36）（16,429）（37,168）－－－ （3,712） 12,285
Balance at end of period ............... 252,687 1,384,581 1,053,395 （7,479）2,683,175 51,722
376 （2,223）
36 （27,915） 21,997
514－ 2,705,706

41

Cash flows from operating activities
Profit before income taxes....................................................................................................................
Depreciation ......................................................................................................................................
Impairment loss .................................................................................................................................
Retirement benefit expenses ................................................................................................................
Gain on bargain purchase ....................................................................................................................
Loss (gain) on step acquisitions.............................................................................................................
Share of loss (profit) of entities accounted for using equity method ..............................................................
Increase (decrease) in allowance for loan losses .......................................................................................
Increase (decrease) in provision for bonuses ............................................................................................
Increase (decrease) in provision for bonuses for directors (and other officers).................................................
Increase (decrease) in provision for share-based compensation...................................................................
Decrease (increase) in retirement benefit asset ........................................................................................
Increase (decrease) in retirement benefit liability ......................................................................................
Increase (decrease) in provision for retirement benefits for directors (and other officers)...................................
Increase (decrease) in provision for point card certificates ..........................................................................
Increase (decrease) in provision for loss on interest repayment....................................................................
Increase (decrease) in provision for reimbursement of deposits ...................................................................
Increase (decrease) in provision for loss on cancellation of system contracts..................................................
Increase (decrease) in provision for loss on transfer of business ..................................................................
Increase (decrease) in provision for contingent loss ...................................................................................
Interest income ..................................................................................................................................
Interest expenses ...............................................................................................................................
Loss (gain) related to securities .............................................................................................................
Loss (gain) on money held in trust .........................................................................................................
Foreign exchange losses (gains) ............................................................................................................
Loss (gain) on disposal of non-current assets ..........................................................................................
Net decrease (increase) in trading account securities ................................................................................
Net decrease (increase) in loans and bills discounted ................................................................................
Net increase (decrease) in deposit .........................................................................................................
Net increase (decrease) in negotiable certificates of deposit .......................................................................
Net increase (decrease) in borrowed money (excluding subordinated borrowings) ...........................................
Net decrease (increase) in due from banks (excluding due from Bank of Japan) .............................................
Net decrease (increase) in call loans ......................................................................................................
Net increase (decrease) in call money ....................................................................................................
Net increase (decrease) in payables under securities lending transactions .....................................................
Net decrease (increase) in foreign exchanges - assets ...............................................................................
Net increase (decrease) in foreign exchanges - liabilities ............................................................................
Net decrease (increase) in lease receivables and investments in leases ........................................................
Increase (decrease) in straight bonds - issuance and redemption ................................................................
Net increase (decrease) in borrowed money from trust account ...................................................................
Interest received ................................................................................................................................
Interest paid ......................................................................................................................................
Other, net .........................................................................................................................................
Subtotal............................................................................................................................................
Income taxes paid ..............................................................................................................................
Income taxes refund ...........................................................................................................................
Net cash provided by (used in) operating activities ...........................................................................
Cash flows from investing activities
Purchase of securities .........................................................................................................................
Proceeds from sales of securities ..........................................................................................................
Proceeds from redemption of securities ..................................................................................................
Increase in money held in trust .............................................................................................................
Purchase of tangible fixed assets ..........................................................................................................
Payments for retirement of property, plant and equipment..........................................................................
Proceeds from sales of tangible fixed assets............................................................................................
Purchase of intangible assets ...............................................................................................................
Purchase of shares of subsidiaries resulting in change in scope of consolidation ............................................
Proceeds from sale of businesses..........................................................................................................
Net cash provided by (used in) investing activities............................................................................
Cash flows from financing activities
Decrease in subordinated borrowings .....................................................................................................
Dividends paid ...................................................................................................................................
Dividends paid to non-controlling interests ..............................................................................................
Purchase of treasury shares .................................................................................................................
Proceeds from sales of treasury shares ..................................................................................................
Proceeds from exercise of employee share options ...................................................................................
Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation ....
Repayments of lease obligations ...........................................................................................................
Net cash provided by (used in) financing activities ...........................................................................
Effect of exchange rate change on cash and cash equivalents .............................................................
Net increase (decrease) in cash and cash equivalents .........................................................................
Cash and cash equivalents at beginning of period ...............................................................................
Cash and cash equivalents at end of period .........................................................................................

2019

Thousands of
U.S. Dollars
2020

8,256 ¥
3,958
70
1,307
（136）
（523）
（17）
6,404
（78）
24
57
893
（0）
（10）
1
（0）
（32）
935
―
3
（56,989）
2,381（3,087）48
2,262（6,255）（32）（70,843）
104,275（8,800）（11,732）200（15,034）
104,363（88,297）391（300）（1,880）2,200（245）
59,334（2,715）（3,583）
26,774（1,744）403
25,433

3,368 $
4,787
―
1,240
―
―
39
（83）
（438）
158
82
4,263
（2,780）
（46）
（19）
0
165
（200）
（194）
43
（58,497）
3,522（1,194）―（6,098）111（266）（20,252）（125,019）
6,560（29,991）
1,481（4,719）54,392（12,346）
7,572
309
―
―
191
58,936（3,979）11,897（107,004）（450）
867（106,587）

75,86136,368643
12,009（1,249）（4,805）（156）
58,844
（716）
220
523
8,205
（0）
（91）
9
（0）
（294）
8,591
―
27
（523,651）
21,878（28,365）441
20,784（57,474）（294）（650,951）
958,145（80,860）（107,801）
1,837（138,142）
958,954（811,329）
3,592（2,756）（17,274）
20,215（2,251）
545,198（24,947）（32,922）
246,016（16,024）
3,703
233,694（279,044）
264,935
126,400（700）（1,840）（566）
11,285（1,210）（1,057）―
118,200（219,130）
147,193
213,765―（3,905）（815）
0（1,495）―
307
135,919（2,564,035）
2,434,393
1,161,444（6,432）（16,907）（5,200）103,693（11,118）（9,712）―
1,086,097（5,000）（2,069）
（4）
（72）
15
―
（64）
（83）
（7,277）
1
136,357
401,928
538,286 ¥―（2,067）
（1）
（231）
0
0
（4）
（469）
（2,774）
5
26,562
375,365
401,928 $（45,943）（19,011）
（36）
（661）
137
―
（588）
（762）
（66,865）91,252,935
3,693,172
4,946,117

Millions of Yen
2020

¥

¥

Consolidated Financial Statements

Consolidated Financial Statements

42

2020 Annual Report
Published in July 2020

3-10-43 Minami Aoyama, Minato-ku, Tokyo 107-0062
https://www.tokyo-kiraboshifg.co.jp

This document contains forward-looking statements on the Group’s results.
These statements are not intended to guarantee future results, as they are
subject to risks and contain uncertainties. Please keep in mind that future
results may differ due to factors including changes in the business environment.