Tokyo Kiraboshi Financial Group
Results Briefing for the
Fiscal Year Ended March 31, 2018

June 7, 2018

Contents
Tokyo Kiraboshi FG

Medium-term business plan Start up☆Kiraboshi

Overview of the Group
Overview of the Group

p.4

Outline of medium-term business plan

P.18

Outline of the three-bank merger

P.5

Profit plan (1) (Volume and yields)

P.19

Profit plan (2) (Gross core business profits, etc.）

P.20

Profit plan (3) (Expenses, etc.）

P.21

Profit plan (4) (Optimization of personnel allocation）

P.22

Profit plan (5) (Strategic branch policy）

P.23

Regional headquarters structure to achieve effective customer
contact

P.24

Leveraging of consulting functions

P.25

Initiatives for individual customers and promotional structure

P.26

Strengthening group strategy through “dialogue”

P.27

Summary of business results
Summary of business results for the fiscal year ended
March 31, 2018 (1) [Tokyo Kiraboshi FG, consolidated]

P.7

Summary of business results for the fiscal year ended
March 31, 2018 (2) [Three-bank total]

P.8

Loans and yields

P.9

On loans to the real estate sector (1)P.10

On loans to the real estate sector (2)P.11

Loans and assets under management

P.12

Securities

P.13

Strengthening collaboration with external organizations

P.28

Problem assets subject to disclosure under the Financial
Reconstruction Law and credit-related costs

P.14

Initiatives to support start-ups - Working to make Kiraboshi
Bank the natural partner for start-ups -P.29

Capital ratio/Core OHR/ROE

P.15

Strengthening support in the areas of medical/welfare andoverseas expansion

P.30

Plan for the fiscal year ending March 31, 2019

P.16

Strengthening solutions that make use of the trusts function

P.31

2

Tokyo Kiraboshi FG

Overview of the Group3

Overview of the GroupTokyo Kiraboshi FG■ Management philosophy■ Major Group companies

Kiraboshi Consulting■ Company history
December 1924
December 1951
April 2004
October 2014
September 2015
April 2016

June 2016
August 2016

November 2016
January 2017
April 2017
October 2017
November 2017
May 2018

Founded The Yachiyo Bank, Limited
Established The Tokyo Tomin Bank, Limited
Established ShinGinko Tokyo, Limited
Business integration by The Tokyo Tomin Bank, Limited and The Yachiyo Bank, Limited
Established Tokyo TY Financial Group, Inc.
Signed the Agreement on a Comprehensive Affiliation for Industrial Development inTokyo with the Tokyo metropolitan government
Business integration between Tokyo TY Financial Group, Inc., and ShinGinko Tokyo,
LimitedBusiness and capital tie-up with Sumitomo Mitsui Trust Bank, Limited
Conditional upon obtaining approval from the relevant authorities, it was resolvedthat there would be a merger between the three banks on May 1, 2018, in addition towhich announcements were made concerning future business policies and overall
strategy.
Alliance with Jimoto Holdings, Inc.
Alliance with Senshu Ikeda Holdings, Inc.
Established Kiraboshi Consulting Co., Ltd.
Formation of ToKI Meki Oen Fund 1
Established Kiraboshi Tech, Inc.
Birth of Kiraboshi Bank
Changed business name to Tokyo Kiraboshi Financial Group, Inc.

To be a financial group for small and medium-sizedenterprise customers and individual customers in theTokyo metropolitan area that will contribute to thedevelopment of local communities throughcomprehensive financial services■ Management policy

A bank that sparkles

Achieve enduring existence as a local regional bank through theprovision of unique financial services
A bank that rises to the challenge
Leverage the special features of the Tokyo area to continue to meet
new challenges in order to contribute to the development of ourcustomers and of local economies
A bank that brings together ideas
We put great value on the “ideas” of customers, the region, and our
employees so as to become a necessary and always trusted presence■ Vision aimed for

Become the urban regional bank group most favoredby customers in the Tokyo metropolitan area4

Outline of the three-bank merger
Tokyo Kiraboshi FG

Bank after merger

Holding company

The origin of the bank’s name

The ideas we wanted to put into the logo mark and color

Constellation. Twinkling stars.
We want to make the dreams of our customers glitter even brighterin the Tokyo area.
Into this name we put our desire for something clean-cut that alsofeels easy to get to know, that takes the customers’ ideas into
safekeeping and uses them to bridge the way to the next generation.

Birth of Kiraboshi Bank

“Kiraboshi” is a design representing somebody facing forward and beginning to walk with head held
high, and represents our feeling of wanting to move forward with and contribute to the local
community, as a bank that rises to the challenge.
Expressing our desire to become a bank that places great value on the “ideas” of customers andemployees, and to become a gleaming presence in local communities, we used dark blue to symbolize“trustworthiness” and “sincerity,” while yellow represents “future promise” and “independence.”

Core systems to be consolidated
by the target date of the first half of FY2020

May 1, 2018

○At the point of merger on May 1, 2018
Tokyo Kiraboshi FG

Tokyo Tomin Bank

Yachiyo Bank

ShinGinko Tokyo

ShinGinko Tokyo’s systems were consolidated with those of Tokyo Tomin
Bank and the systems of Yachiyo Bank and Tokyo Tomin Bank wereconnected via a relay system.

○ Unification of core systems
By the target date of the first half of FY2020, former Yachiyo Bank systems
to be consolidated with those of former Tokyo Tomin Bank to unify coresystems and sub systems etc.

5Tokyo Kiraboshi FG

Summary of business results

6Summary of business results for the fiscal year ended March 31, 2018 (1)[Tokyo Kiraboshi FG, consolidated]■ Business performance (Tokyo Kiraboshi FG, consolidated)Tokyo Kiraboshi FG■ Achievement rate (Tokyo Kiraboshi FG, consolidated)(¥ billion)No.

2017/3

2018/3

Change1

Consolidated ordinary income

83.0

82.6

(0.4)

2

Consolidated gross business profit

71.2

68.4

(2.7)

3

Excluding gains/losses on bonds etc.

69.9

69.8

(0.1)

4

Of which, net interest income

55.0

54.0

(1.0)

5

Of which, net fees and commissions

12.6

14.1

1.4

6

Of which, other business income

3.4

0.2

(3.1)

7

Expenses

59.0

59.0

(0.0)

8

Credit-related costs

2.8

2.0

(0.8)

9

Gains on stocks and other securities

1.1

2.5

1.4

10

Profit on investments based on theequity method

0.0

0.0

(0.0)

11

Others

(2.1)

(5.2)

(3.0)

12

Ordinary profit

8.3

4.7

(3.5)

13

Extraordinary profit

19.1

0.0

(19.1)

Gain on bargain purchase

19.4

－

(19.4)

15

Income before income taxes

27.4

4.7

(22.7)

16

Income taxes

1.8

1.0

(0.8)

17

Net income

25.5

3.6

(21.8)

18

Profit (loss) attributable to noncontrolling interests

0.0

0.0

(0.0)

19

Profit attributable to owners of parent

25.5

3.6

(21.8)

14(¥ billion)

2018/3plans

2018/3
results

Ordinary profit

5.0

4.7

94.5%

(0.3)

Profit attributable toowners of parent

3.2

3.6

114.9%

0.4

Achievement Vs. initial plansrate
ChangeSummary (1) Tokyo Kiraboshi Financial Group (Consolidated)
Ordinary profit of ¥4.7 billion was posted, a decrease of¥3.5 billion year on year.
Profit attributable to owners of parent came to ¥3.6 billion,a decrease of ¥21.8billion year on year.
Profit attributable to owners of parent of ¥25.5 billion for the fiscal
year ended March 31, 2017 included a gain on bargain purchase of¥19.4 billion arising from the business integration with ShinGinko
Tokyo.
(Profit attributable to owners of parent was ¥6.1 billion after
excluding the gain on bargain purchase (¥25.5 billion - ¥19.4 billion)).
Compared with the projections presented in the plan of the fiscal
year ended March 31, 2018, ordinary profit decreased ¥0.3 billion
while profit attributable to owners of parent was slightly higher, withan increase of ¥0.4 billion.

7

Summary of business results for the fiscal year ended March 31, 2018 (2)[Three-bank total]

Tokyo Kiraboshi FG(¥ billion)

Business performance

Summary (2) [Three-bank total]

Three bank total (non-consolidated)2017/3

2018/3

Change1Ordinary income

88.0

86.1

(1.8)

2

Gross business profit

73.7

70.2

(3.5)

3

Of which, gross core business profit

72.1

71.5

(0.6)

4

Of which, net interest income

60.0

58.8

(1.2)

5

Of which, net fees and commissions

10.0

11.2

1.2

6

Of which, other business income

3.5

0.0

(3.5)

1.6

(1.2)

(2.9)

57.7

57.3

(0.3)

7
8

Of which, gains (losses) on bonds, etc.
Expenses

9

Of which personnel expenses

29.2

28.4

(0.7)

10

Of which non-personnel expenses

24.5

24.3

(0.2)

11

Net core business income

14.3

14.1

(0.2)

12

Transfer to reserve for general possible loan losses

(0.7)

(0.3)

0.3

13

Net business income

16.7

13.2

(3.5)

14

Non-recurring profit (loss)

(4.6)

(4.7)

(0.1)

15

Of which, reversal of allowance for loan losses

1.5

0.9

(0.6)

16

Of which, loss from write-off of
non-performing loans

5.4

3.4

(2.0)

17

Of which, gains (losses) on stocks and othersecurities

0.9

2.8

1.9

18

Ordinary profit

12.1

8.4

(3.6)

19

Extraordinary profit (loss)

(0.3)

(0.0)

0.2

20

Income taxes

2.2

1.1

(1.0)

21

Net income

9.6

7.2

(2.3)

22

Credit-related costs

2.9

2.1

(0.8)

Net interest income came to ¥58.8 billion (decrease of ¥1.2 billion
year on year) as a result of a further decline in the lending rates
from the effect notably of the negative interest rate policy.
・Interest on loans and discounts down ¥2.0 billion year on year
・Interest on securities
up ¥0.4 billion year on year
Net fees and commissions came to ¥11.2 billion (increase of¥1.2 billion year on year), as a result of increase in sales ofinvestment trusts and life insurance products.
Losses on bonds etc. of ¥1.2 billion were recorded (a negative¥2.9 billion change year on year) due in part to losses on sales
notably of US Treasury bonds.
Expenses came to ¥57.3 billion (decrease of ¥0.3 billion year onyear), reflecting further reductions in both personnel and nonpersonnel expenses.

Credit-related costs remained low at ¥2.1 billion (decrease of¥0.8 billion year on year), as corporate performance followed arecovery trend.

8Loans and yields* For 2016/3 to 2018/3, the figures represent the total of the former Tokyo Tomin Bank, the former Yachiyo Bank and the former ShinGinko Tokyo on a non-consolidated basis.

Tokyo Kiraboshi FG■ Loans to SMEs increased through focused efforts in evaluation ofbusiness feasibility and support of mainstay operations.

■ The loan portfolio is diversified over a range of industries to reduce
the risks.
■ While loan yields are on the decline partly from the effect of thenegative interest rate policy, efforts are made to curtail the fall inyields by providing high value added services and flexible support,
in addition to increased efforts in financing based on evaluations ofbusiness feasibility.

■ Loan balance by type of customer (three-bank total)(The numbers in white are average balances for the term; figures within brackets are year-on-yearchanges; percentages are change rates.)(¥ billion)

3,477.5

3,570.7[+41.2]
1.1%

3,611.9

3,592.2

3,676.2

3,632.6

509.0

Local governments

183.9

180.5

[+55.1]
1.5%[-13.8]-7.6%

Medium and largesized companies

574.8

531.4

[-22.4]-4.2%

3,582.2

SMEs

Individuals

1,966.3

3,621.1

2,045.4

857.2

863.6

2016/32017/3[+85.1]
4.1%[+6.2]
0.7%

166.7

2,130.5

869.8
2018/3

2019/3 plan

■ Yields (three-bank total)(Figures within brackets are year-on-year changes)
Loan yield

1.41

1.28

[-0.07 pt]

1.21

1.18 %

1.24[- 0.06 pt]

1.18

1.15 %[- 0.01 pt]

0.03

0.03 %

2018/3

2019/3 plan

Yield
difference

1.35

Deposit yield

0.06

0.04

2016/32017/3■ Loan balance by industry (three-bank total)(The numbers in white are average balances for the term; figures within brackets are year-on-yearchanges; percentages are change rates.)(¥ billion)

3,582.2

3,621.1

342.1
183.8
394.3
240.4
286.5
423.7

325.6
186.6
419.1
209.0
329.9

[+55.1][-1.5][+2.0][+8.5][+0.4][+22.0]435.8[+25.5]

358.7

371.9

[+5.1]

857.2

863.6

[+6.2]

495.1

479.1

2016/32017/3[-13.0]3,676.2
324.1
188.6
427.6
209.4
351.9

Manufacturing (9%)
Construction (5%)

461.3Real estate leasing (13%)

377.0Services (10%)

869.8

Individuals (24%)

466.1

Other (13%)

2018/3

Commerce (12%)
Banks and other financial institutions (6%)
Real estate brokerage (10%)

9On loans to the real estate sector (1)Tokyo Kiraboshi FG■ Positioning the real estate sector as the local industry of the “Tokyo Metropolis”, efforts are made to respond to actual needs of local customers, andthereby diversify exposure.
■ In real estate leasing business, full attention is given to risk management, which includes inspection of each individual target property to check such aspects
as rent level as the source of repayment.
■ Real estate leasing as a percentage of total lending is approximately 20%. The policy is to construct a balanced loan portfolio.
* Figures within brackets are percentages of the total loan balance.

Loan balance to the real estate sector

Average balance per loan
Approx. ¥60 million

Risk-monitored loan to the real estate sector

813.2(¥ billion)

710.2

765.8

[22.1%][21.1%][19.8%]
Real estate
brokerage

286.5

329.9

351.9

(¥ billion)

11.9
Real estateleasing etc.

423.7

435.8

461.3

Real estate
brokerage
Real estateleasing etc.

2016/32017/3

2018/3

2.6
9.2

2016/3

7.9

7.2

1.4

1.1

6.5

6.1

2017/3

2018/310

On loans to the real estate sector (2)Tokyo Kiraboshi FG■ Rent per unit of rental properties in Tokyo are showing signs of bottoming out for both condominiums and apartments, moving more or less flat since 2013.
■ The number of property deals closed and prices show firm trends for both “second-hand condominiums” and “new single-family houses” in theTokyo Metropolitan Area (Tokyo and the three neighboring prefectures), which is a major market for the Group.
Trend in annual average rent unit cost (condominiums)
3,300Tokyo metropolitan areaTokyo
Kanagawa

3,300
3,100
2,900
2,700
2,500
2,300

Tokyo metropolitan areaTokyo
Kanagawa

3,100

Rent per m2 (yen)

2,900
2,700
2,500
2,300
2,100

2,100

1,900

1,900

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20182008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: “Trends in Residential Rental Property Transactions in the Tokyo Metropolitan Area”,
Real Estate Information Network for East Japan (public interest incorporate foundation)

Source: “Trends in Residential Rental Property Transactions in the Tokyo Metropolitan Area”,
Real Estate Information Network for East Japan (public interest incorporate foundation)

Number of deals closed / unit price of second-hand condominiums
in the Tokyo Metropolitan Area
(Tokyo and the three neighboring prefectures)

Number of property
成約件数
deals closed
Source: Real Estate Economic Institute Co., Ltd.

Price
per m2㎡単価

Numberof property
成約件数
deals closed
Source: Real Estate Information Network for East Japan

2018/42018/1

2017/7

Deal
price
成約価格

2017/102017/42017/1

2016/7

2016/10

2016/4

2016/1

2015/7

2015/10

2015/4

2015/130.0

2014/70

2014/1035.0

2014/41,000

2014/140.0

2013/72,000

2013/1045.0

2013/43,000

2013/150.0

2012/7

4,000

700
600
500
400
300
200
100
0

2012/455.0

2012/1
2012/4
2012/7
2012/102013/1
2013/42013/7
2013/10
2014/1
2014/4
2014/7
2014/10
2015/1
2015/4
2015/7
2015/10
2016/1
2016/4
2016/7
2016/102017/1
2017/42017/72017/10
2018/15,000

2012/1

Number of deals closed / unit price of new single-family housesin the Tokyo Metropolitan Area
首都圏（1都3県）の新築分譲戸建成約件数/価格(Tokyo and the three neighboring prefectures)2012/10Rent per m2 (yen)Trend in annual average rent unit cost (apartment)

3,800
3,700
3,600
3,500
3,400
3,300
3,200
3,100
3,000

11

Deposits and assets under management
Tokyo Kiraboshi FG■ In the fiscal year ended March 31, 2018, corporate customer deposits increased by ¥54.5 billion, while individual deposits decreased by ¥87.3 billion
due in part to time deposits with premium interest rate reaching maturity. As a result, deposit balance declined by ¥68.5 billion year on year.
■ With regard to investment trusts, the deployment of core/satellite strategy was pushed forward to promote accumulation of balance primarily in coreassets. However, total balance decreased due partly to the decline in net asset value reflecting market price fluctuations and other factors.
■ As for insurance, due to the introduction of new foreign currency-denominated products, sales were robust.

■Deposit balance by client (three-bank total)■ Balance of assets under management by item

(The numbers in white are average balances for the term; figures withinbrackets are year-on-year changes; percentages are change rates.)(Figures within brackets are year-on-year changes)(¥ billion)
OthersCorporate

Individuals

4,761.4

4,794.4

4,846.7
194.7

4,784.4
183.0

1,374.0

1,355.7

3,277.9

2016/3

3,245.6

2017/3[-28.4]-0.5%[-68.5]-1.4%[-35.8]-19.5%[+54.5]4.0%[-87.3]-2.6%

4,766.0

4,771.4

4,715.9
147.2

4,794.5(¥ billion)
Public bonds

1,410.2

496.6

480.5

[-2.9]

477.6

65.0

51.0

[-7.2]

43.8

207.8

212.8

[+15.6]

228.4

223.7

216.6

2016/32017/3

Insurance

Investment
trusts3,158.3

2018/3

2019/3 plan[-11.3]

205.3

2018/3* Balance of assets under management of the former Tokyo Tomin Bank and former Yachiyo Bank.
Former ShinGinko Tokyo was not engaged in the management of assets such as investment trusts
and life insurance products.

12

Securities
Tokyo Kiraboshi FG■ Amidst the low interest rate environment, the outstanding balance of securities decreased by ¥70.6 billion year on year, a large proportion of which wasaccounted for by government bonds. On the other hand, the balance of “Other securities”, which include trust beneficiary rights, increased by ¥14.0 billion
as a result of continued efforts in diversification of investment management and portfolio diversification.
■ In 2018/3, yield on securities rose 0.15 points year on year to 1.36%, attributable largely to dividends associated with exits from investments made throughcorporate restructuring funds.
■ Constructing ladder type portfolio to achieve risk diversification and stable profits, and thereby avoid increase in duration.
■ Continued efforts will be made in diversification of investment management and portfolio diversification while ensuring control of risk amount in order toavoid excessive interest rate risk.
■ Securities balance・Yields (three-bank total)■ Yield on securities (three-bank total)(The numbers in white are average balances for the term; figures withinbrackets are year-on-year changes; percentages are change rates.)

1,366.1(¥ billion)
Other
securities
Stock
Corporate
bonds
Municipal
bonds
Government
bonds

1,373.2
213.2
39.8
440.4

1,358.7[-123.0] -9.0%

1,271.0[-70.6] -5.5%

254.1[+14.0] 5.5%

39.3[+1.1] 2.8%

429.8[-32.7] -7.6%

123.8
71.6
555.8

476.0

2016/32017/3

1,235.7

1.21

Yields[+0.15pt]

1.36 %

1.04

2016/32017/3

2018/3

1,200.4
268.1■Duration (three-bank total)

40.4
397.1

(Three-bank total)[-17.5] -24.4%

54.1[-35.6] -7.4%

4.7

4.9

4.5 years

440.4

2018/3

2016/32017/3

2018/313

Problem assets subject to disclosure under the Financial Reconstruction
Law and credit-related costs
Tokyo Kiraboshi FG
Value and ratio of problem assets subject to disclosure under the Financial Reconstruction Law (in the case of partial direct write-offs)■ The value of problem assets subject to disclosure under the Financial Reconstruction Law fell by ¥6.5 billion to ¥76.7 billion on a three-bank total basis,
while the disclosure assets ratio declined by 0.21 points over the same period.
Credit-related costs■ Credit-related costs in the fiscal year ended March 31, 2018 decreased by ¥0.81 billion to ¥2.11 billion on a three-bank total basis.
Due to such factors as the relative stability of business conditions for borrowers and our focus on reconstruction support, etc., the level remains low.

■ Value and ratio of problem assets subject to disclosure(three-bank total)■ Credit-related costs(¥ billion)

2016/3Three-bank total(Figures within brackets are year-on-year changes.)
Disclosure assets
ratio

2.48

2.27

(¥ billion)
Substandard loans

89.8
5.3

83.2
3.4

[-0.21 pt][-6.5][-0.6]

2.06 %

Bankrupt and quasibankrupt assets

72.0

7.4

7.7

2016/32017/3[-0.4]

2.11■ Coverage status of problem assets subject todisclosure under the Financial Reconstruction Law(three-bank total)[Before partial direct write-offs]

66.6
7.3
2018/3

Change(0.81)(¥ billion)

2018/3

2.8
Covered amount[-5.4]

2.92

2018/3

76.7

Doubtful assets

77.1

0.36

2017/3

70.1

Reserve for possible loan losses

20.3

Collateral, guarantees, etc.

49.7

Problem assets

86.4

Coverage ratio

81.1%

14

Capital ratio/Core OHR/ROETokyo Kiraboshi FG■ Consolidated capital ratio (Tokyo Kiraboshi Financial Group)(Figures within brackets are year-on-year changes.)
Capital ratio

9.54

8.65

[-0.49 pt]

9.05 %(¥ billion)
Net assets

284.2[-2.9]

281.3

222.6

2016/32017/3

2018/3*Figures for former ShinGinko Tokyo are not included in 2016/3

Capital ratio■ The consolidated capital ratio for the Tokyo Kiraboshi Financial Group fell
by 0.49 points year on year to 9.05% mainly as a result of increased loans
to small and medium-sized enterprises, while consolidated net assets fell
to ¥281.3 billion.
Core OHR■ As a result partly of decrease in gross core business profit due to decline
in loan yields, the core OHR rose 0.21 points year on year on a threebank total basis.
ROE (consolidated)■ ROE (consolidated) fell by 1.15 points year on year on a three-bank total
basis as a result of a decrease in profit attributable to owners of parent
that was caused primarily by the decline in loan yields.
■ ROE (consolidated)■ Core OHR (three-bank total)(%)(Figures within brackets are year-on-year changes.)

2016/3

79.29

80.04

[+ 0.21 pt]

80.25 %

Three-bank total* ROE (consolidated) =2016/32017/3* Core OHR ＝

Expenses
Consolidated gross corebusiness profit

2018/3× 100

5.24

2017/3

2018/3

3.01

Profit attributable to owners of parent

1.86
× 100

(Net assets at the beginning of the period + net
assets at the end of the period) ÷2* The consolidated figures are calculated as the total for former Tokyo Tomin Bank and former
Yachiyo Bank on a consolidated basis, and former ShinGinko Tokyo on a non-consolidated basis.

15

Plan for the fiscal year ending March 31, 2019
Tokyo Kiraboshi FG■ 2019/3 plan (Tokyo Kiraboshi FG, consolidated)2018/3
results
Profit attributable toowners of parent(¥ billion)

2019/3plan

3.62021/3Mid-term Plan

Change

3.2

(0.4)

6.0

■ 2019/3 plan (Kiraboshi Bank)(¥ billion)

2018/3
results

2019/3
plan

Change2021/3Mid-term Plan

1

Gross core business profit

71.5

65.5

(6.0)

-

2

Of which, net interest
income

58.8

53.0

(5.8)

-

3

Expenses

57.3

57.2

(0.1)

-

4

Net core business income

14.1

8.3

(5.8)

12.5

5

Credit-related costs

2.1

2.4

0.3

-

6

Ordinary profit

8.4

2.4

(6.0)

-

7

Net income

7.2

3.9

(3.3)

-

8

Ordinary profit(consolidated)*

7.2

3.4

(3.8)

-

9

[consolidated] Profit
attributable to owners ofparent*

5.3

4.4

(0.9)

-

* Figures for the consolidated three bank total are the total for the former Tokyo Tomin Bank and the former Yachiyo Bankon a consolidated basis, and the former ShinGinko Tokyo on a non-consolidated basis.

Main factors of the profit plan
Consolidated profit of Tokyo Kiraboshi FG is planned at¥3.2 billion (down ¥0.4 billion year on year).
Net interest income is planned at ¥53.0 billion (down¥5.8 billion year on year) in consideration of the effectof negative interest policy and other factors.
• Decrease of ¥1.2 billion in interest on loans anddiscounts.
• Decrease of ¥4.4 billion in interest on securities.
Expenses are planned at ¥57.2 billion, unchanged fromthe previous fiscal year, to reflect achievement of
improvement in headquarters efficiency, system
consolidation with the former ShinGinko Tokyo, Limited
and other factors, offsetting such anticipated costs asinitial expenses relating to branch rearrangement.
Credit-related costs are planned to grow by ¥0.3 billion,a main factor being increase in loans to SMEs throughpromotion of business feasibility evaluations financing.
Profit attributable to owners of parent is planned at¥4.4 billion (down ¥0.9 billion year on year) which
includes factors mentioned above.

16

Tokyo Kiraboshi FG

Medium-term Business Plan

Start-up

Kiraboshi

17Outline of medium-term business plan
Tokyo Kiraboshi FG

Start-up

Kiraboshi<Tokyo Kiraboshi FG>*Announced on March 30, 2018

PeriodNumerical targets

May 2018 - March 2021 (3 years)

Net income¥6.0 billion<Kiraboshi Bank><Concept of the company name>① Creating “a new kind of urban regional bank for the
Tokyo area”② Commitment by the Group to contribute to thedevelopment of the Tokyo area
(having a tangible presence in the Tokyo area)③ Start-up spirit based on “Challenge & Speed”

Business models

Net core business income
OHR
Target for “first calls”(*)¥12.5 billion
80%
7,000 annually(*) ・ Number of proposals made to support mainstay operations(corporates, owner managers)
・ Number of proposals made to support life plans (individuals)“Building Business models with dialogue”

Aiming for a management approach that leads to enhancement of customer satisfaction through high quality contacts with customers, community,
investors and employees.

Main measures① Enrichment of consulting functions
Through enrichment of consulting functions, aim to be a bank that customers would give the first call.

② Human resources development focusing on dialogue for being chosen and trusted
Developing “Kiraboshi People”“Kiraboshi People” are able to win the trust of customers, act as if standing in their shoes, and experience success as a result③ Business process re-engineering to strengthen contact with customers
Realize work styles that make tangible the meaningfulness of work and enable emotional fulfillment through reform of awareness and value of work.

18

Profit plan (1) (Volume and yields)
Tokyo Kiraboshi FG■ Outstanding balances of loans, deposits and securities are planned to remain flat, to reflect change in business model from one seeking earnings improvement throughvolume expansion to one that places priority on consulting functions.
■ Decline in yields to be curtailed by raising the proportion of loans to SMEs through consulting business, financing based on business feasibility evaluations and otherinitiatives that have “dialogue” as the starting point.

Deposit yield (%)

Loan yields (%)
1.21

1.18

0.03
1.17

Loan balance (¥ billion)

3,676.2

3,632.6

3,630.0

0.03

1.17

0.02

4,715.9

4,794.5

4,850.0

1.01

0.02

Deposit balance (¥ billion)

3,630.0

Yield on securities (%)

1.36

0.98

0.89

Securities average balance(¥ billion)

4,850.0
1,235.7

1,210.0

1,210.0

1,210.0

Fiscal year ending
March 31, 2019

Fiscal year ending
March 31, 2021

Fiscal year ending
March 31, 2023

Volume is planned to remain flat.

Fiscal year ended
March 31, 2018
resultFiscal year ending
March 31, 2019

Fiscal year ending
March 31, 2021

Fiscal year ending
March 31, 2023

Fiscal year ended
March 31, 2018
resultFiscal year ending
March 31, 2019

Fiscal year ending
March 31, 2021

Fiscal year ending
March 31, 2023

Fiscal year ended
March 31, 2018
result19

Profit plan (2) (Gross core business profits, etc.)
Tokyo Kiraboshi FG■ While the effect of negative interest rate policy will continue, interest on loans and discounts is planned to remain flat in and after fiscal year ending March 31, 2019,
to be achieved by bolstering SME financing.
■ Interest on securities in fiscal year ending March 31, 2019 is conservatively planned given market environment and other factors.
■ Increase in fees and commissions will be sought by focusing on understanding customers’ needs and promoting customer-first sales activities to strengthen sales offinancial products and consulting business.

(¥ billion)
Gross corebusiness profit

71.5
65.5

65.5

65.0

42.5

42.0

42.0

Interest on loans
and discounts

43.8Interest on securities

15.0

10.5

10.5

9.5

11.2

11.5

12.5

12.5

Fiscal year ended
March 31, 2018

Fiscal year ending
March 31, 2019

Fiscal year ending
March 31, 2021

Fiscal year ending
March 31, 2023

fees andcommissions

20

Profit plan (3) (Expenses, etc.)
Tokyo Kiraboshi FG■ Although profit in fiscal year ending March 31, 2019 is expected to decline given the heavy burden of the merger costs, the effect of the integration on such fronts asimprovement of headquarters efficiency, rebuilding of branch network and systems integration should gradually materialize.
■ As a result of cost-cutting effect that leverages on the “strength of the merged bank”, net core business income and net income in fiscal year ending March 31, 2023
are planned to be no less than ¥16.0 billion and ¥10.0 billion respectively.

80.25%In the 80% level

80%

75% or below

System consolidation

16.0 billion
or more¥12.5 billion¥10.0 billion
or more¥8.3 billion¥6.0 billion

Several hundred
million yen¥2.5 billion¥2.5 billion¥3.0 billion¥2.0 billion¥5.0 billion

Net income(Tokyo Kiraboshi FG)

System consolidation

Rebuilding
branch network

Improving
headquarters
efficiency¥3.0 billion

Additional
expenses¥1.5 billion¥2.9 billion

Fiscal year ended
March 31, 2018

Net corebusiness income(Kiraboshi Bank)

Other efficiency
improvements¥10.5 billion or more

Consolidation effect¥3.2 billion¥1.0 billion¥0.6 billion¥0.8 billion

OHR¥4.0 billion¥4.0 billion

Fiscal year ending
March 31, 2019

Fiscal year ending
March 31, 2021

Merger and system
consolidation costs

Total value
Approx. ¥20.0 billion
Fiscal year ending
March 31, 2023

21

Profit plan (4) (Optimization of personnel allocation )Tokyo Kiraboshi FG■ Personnel engaged in overlapping headquarters operations will be reassigned to sales divisions, leading to a reduction in total personnel of about 20% by the fiscal year
ending March 31, 2023 (as compared to 2017/9).
■ Reallocation progressing as planned, with headcount in the headquarters and sales branches etc. brought to 650 and 2,400 respectively, as of March 31, 2018.
■ Human resources development and business process re-engineering will enable optimization of personnel allocation.
Cultivation of personnel who can think and act

Time creation through business process re-engineering

・ Developing “Kiraboshi People” who are able to win the trust of customers, act as if standing intheir shoes, and experience success as a result
・ Proactively dispatch personnel to external organizations both in Japan and overseas, andproactively cultivate personnel with expertise.
・ Provide female and young employees with opportunities to take active roles in the workplace.

・ Established the business process re-engineering team “ZERO” in January, 2018, and put in place asystem to push it forward.
・ Business process re-engineering to create time for “dialogue” with customers
・ Review business procedures and reduce the business burden of customers, and transfer these
initiatives to enhanced customer satisfaction.
・ Proactively review headquarters operations and proceed with reduction in headquarters
personnel.

Total personnel
3,100
Headquarters
personnel
750

Headquarters
personnel
700

Headquarters
personnel
650

Headquarters
personnel
550

Personnel in sales
branches etc.
2,450

Personnel in sales
branches etc.
2,400

Personnel in sales
branches etc.
2,400

Personnel in sales
branches etc.
2,400

2016/9 result

2017/9 result

2018/3 result

2019/3 plan

Compared to 2017/9
Total personnel
Approx. 20% reduction

Cut down
headquarters
personnel by
about 50%2023/3 plan

22

Profit plan (5) (Strategic branch policy)
Tokyo Kiraboshi FG■ Reduce the number of offices by about 30% by the fiscal year ending March 31, 2023 (as compared to 2017/9) by promoting branch-in-branch approach primarily forregionally overlapping branches.
■ Promote switch from full banking branch to specialized branch in line with the regional features.
■ With due consideration to systems consolidation, it is planned to roll out establishment of new offices in a form that matches to the regional features, whether it bespecialized branch catering to corporate customers or to individual customers.

Rearrangement implemented to 5 branch in branches and6 specialized branches.

Rearrangement to 24 branch in branches scheduled during fiscal year
ending March 31, 2019

Offices
159
Offices
135

About 100 offices
Approx. 30% reduction
compared to 2017/9

Full banking
branches

133

About 50 offices
Reduction
primarily ofoverlapping
branches

Rolling out
establishment of new
offices that match to
the regional features,such as specialized
branch catering tocorporate orindividual customers
or other

About 50 offices
Specialized branches

26

2017/9 result

2019/3 plan

2023/3 plan

23

Regional headquarters structure to achieve effective customer contact
Tokyo Kiraboshi FG

Building omnidirectional
relationships
 Our sales area is the whole of
the Tokyo Metropolitan area,
and we are aiming at an
omnidirectional sales style.

- Development of regional headquarters structure -with corporates◎Regional headquarters structure- Getting closer to the customer/region Johoku/Nishi Tokyo

with region
 Many micro-enterprises,
landlords, individuals
 Sophisticated fund management
needs, consulting on
inheritances, etc.
 Further regional collaboration> Knowledge regarding loans toheadquarters

Tokyo ward area
Josai

“Dialogue”

Joto

headquarters

Tokyo Mirai sales
department(Entire Tokyo
Metropolitan area)

headquarters

Tama

Jonan

headquarters

CentralTokyo area
Sales
department
Large
branches

headquarters

Sagamihara City and MachidaCity Small and medium-sizedenterprises are concentrated in
the Tokyo area.
 Respond to corporate fundingneeds and business succession
issues.
> Management support for

M&A, business rehabilitation> Collaboration with Tokyo
Chamber of Commerce andIndustry> Knowledge regarding loans to

medical/welfare

Machida/Sagamihara,
suburban Tokyo areas
Sagamihara/
CentralKanagawa
headquarters

Machida/Yokohama/
Kawasakiheadquarters

real estate> Community-based sales> Networking with local
governments, including“Dialogue”

Introduce regional headquarters structure to devolve significant authority
to local offices to improve the sense of speed in responding to needs
specific to the special features of the region (market)

Strategic openingof new branches
Strategic opening of
new branches(open territories)
Areas in which small andmedium-sized enterprises andindividuals are concentrated andthat we can expect to open up

24

Leveraging of consulting functions
Tokyo Kiraboshi FG■ Understanding business feasibility (understanding the customer) to discover latent needs and issues, and create optimal proposals ⇒ As a result, we discharge our mission and responsibility
as a regional financial institution in the Tokyo area
■ Strengthening consulting operations support structure○ Understand the customer through dialogue, and seek to build relationships of trust by providing optimal proposals that utilize the consulting functions○ Various types of support provided by Kiraboshi Consulting Co., Ltd. (IPO, strengthening governance, business succession, M&A, etc.), in addition to collaboration with financial institutions, etc.

Responding to the financing needs ofcorporate customers
Major corporations

Approx. 1 million companies
in Tokyo metropolis andKanagawa Prefecture*

Previoustransactions

Small andmedium-sizedEnterprises

Improving corporate value(Support for mainstay operations)
Partnerships with local governments/Support for expanding sales channels/
Support for securing human resources・・・

Resolving management issues (Support for finance)
Short-term rollover loans/ABL/Syndicated loans・・・

Various kinds of highly specialized support
M&A/Capital policy/Business succession/IPO・・・

Initiatives for owner/family (employees)

Improving corporate value/
improving satisfaction

Zone in which responsibility and mission
as a regional financial institution
in the Tokyo area is discharged<Dialogue>
Understanding the situation/Understanding needs/
Understanding business feasibility ・・・

Enrichment of consulting
functionsMid-tier enterprises
Small and medium-sizedenterprises

Initiatives stemming from theenrichment of consulting functions

Assets under management/inheritance/productive use of real estate・・・

Outcomes achieved/improved employee satisfaction

Micro-enterprises* In particular the target group, which is oriented towards growth and improvement: small and medium-sizedenterprises with annual sales of between ¥0.3 billion and ¥5.0 billion*Source: Economic Census

Benchmark2016/32017/3

2018/3

Benchmark2016/32017/3

2018/3

Number of customers receiving loans based on evaluation ofbusiness feasibility

525
companies

1,775
companies

4,478
companies

Number of customers
receiving M&A support

32
companies

48
companies

97
companies

Above numbers as a percent of the total number of borrowers

1.9%

6.3%

16.1%

Benchmark2016/32017/3

2018/3

Outstanding balance of loans based on evaluation of businessfeasibility¥90.0 billion¥370.3 billion¥637.6 billion

Number of customers receiving
business succession support

399
companies

460
companies

672
companies

Above numbers as a percent of the outstanding balance ofloans to the relevant borrowers

3.8%

15.5%

25.8%

25

Initiatives for individual customers and promotional structure
Tokyo Kiraboshi FG■ Initiatives as “day-to-day financial advisor” in preparation for realizing a customer-oriented sales structure○ Strengthening structures based on strategy for each customer segment/development of highly specialized human resources (cooperative structure between regional headquarters and sales offices)○ Focus on main target groups, including owners of small and medium-sized enterprises with whom it is possible to meet face-to-face, their families, employees of our customers, local people ofproperty, etc. in the “middle-affluent group” and the “core retail group”○ Strengthen support for elderly people in the region

Promote investment trusts in preparation
for the shift from saving to asset formation

Strategy for each customer segment

Super-affluent group

SolutionsSuper-affluent
group

People of property (upper)(Estimated financial assets of more than
¥1 billion)

Asset management/
Health management/
Education of sonsMiddle-affluent
group(Face-to-facesales)

Owners of small and medium-sizedenterprises
Families of the same
Leading regional influencers/peopleof property(Estimated financial assets of morethan ¥100 million)

Asset management/asset
administration
Inheritance support
Business succession
Productive use of real estate, etc.

Core retail group(Face-to-facesales)

Customer employees
General customers(Estimated financial assets of morethan ¥10 million)

Asset formation(core funds)
Various loans, etc.

Mass retail group(Non face-to-facesales)

General customers(Young group)

Asset formation
Various loans
Transactional lending, etc.

(Unit: ¥100 million)

Specialization

Mass retail group

TargetInvestment trust balances (plan)

High

Core retailgroup

Main target group

Middleaffluent
group

Customer group○ In preparation for “the shift from saving to asset formation,” accumulate investment trust balances
2019/32020/32021/3◆ Strengthen proposals2018/3
for long-term management○In preparation for “the shift from saving to asset formation,”
accumulate investment trust balances◆ Strengthen proposals for long-term management◆ Review evaluation of sales offices for core fund initiatives

Approach young group

Implement consulting that begins with dialogue (day-to-day financial advisor)<Asset management/asset administration needs>
・ Strengthen initiatives aimed at shift from deposits to core funds. Towards “the shift from saving to asset formation”
・ Expand number of highly specialized human resources and product line-up. Strengthen sophisticated consulting sales.
<Financing (loan) needs>
・ Speedy response to projects/demonstrate dominance in home relocation loans /strengthen activities within area of
responsibility◆ Utilize the “Maekyu” platform of Kiraboshi Tech

◆ Collaboration with FinTech companies by utilizing Open API strategy

Build a support structure for elderly people in the region- Kiraboshi Bank's goal is to be a bank that supports the active seniors of the region -・ Consider allocating partners to act asconsultants for active seniors in ways
appropriate to local characteristics
・ Support for senior founders

Strengthen
supportfor seniors

26Strengthening group strategy through “dialogue”
Tokyo Kiraboshi FG■Restructuring and rebuilding of Group companies in preparation for “A comprehensive service business that is also strong in
finance,” as well as establishing the Group brand○ With the goal of providing solutions appropriate to the customer's life cycle, we seek to strengthen consulting functions, and to utilize the humanresources of all Group companies to improve service (human resource development by transfers within the group).
○ Accelerating the restructuring of Group companies with the aim of expanding and diversifying Group revenue streams.

⇒ Infinite expansion
Business model patents

Kiraboshi Tech
Develop “Maekyu” app andoffer to financial institutions
Develop license businessfor Kiraboshi BankTokyo Kiraboshi
Financial Group
Kiraboshi Bank

Guaranty company

Cards

Business services

Tomin Shinyo Hosho

Kiraboshi JCB
Kiraboshi Credit
Service

Kiraboshi Business
Service(business name scheduled tochange to Kiraboshi Shinyo
Hosho on October 1)

Yachiyo Shinyo Hosho

Kiraboshi Consulting's

Establishmentof capitalsubsidiaryetc.

Strengthening the foundations of the Kiraboshi Grouphorizontal activities
Overseas consulting(Shanghai
local subsidiary)

IT

Lease

Tomin Computer System(business name scheduled
to change to Kiraboshi System
on October 1)

Tokyo Kiraboshi Lease

27

Strengthening collaboration with external organizations
Tokyo Kiraboshi FG
 Strengthening partnerships with local governments, such as the Tokyo Metropolitan Government and related organizations/financial institutions

Tokyo Metropolitan Governmentand related organizations

Results for collaboration withlocal government organizations, etc. (benchmark)SME customers

September 25, 2015 “Agreement on a Comprehensive Affiliation for
Industrial Development in Tokyo” concluded

・Support for small and medium enterprises (support
for commercial and industrial organizations, finance),
support for tourism trade associations, agriculture
and fisheries trade organizations, hiring andemployment support, etc.

(Consultation)
Understanding
the voices anddesires of
SMEs

Introducing
variety of
supportofferings(Guidance
activities)

Overall management support

Support for hiring and securing human resources

Conveying the voices
and desires of SMEs.
Implementing policy
proposals, etc.

2017/3

2018/3

Number of start-ups supported inpartnerships with local governmentorganizations

52

194

Number of companies to which support
for mainstay operations has been
provided in partnership with local
government organizations, etc.

648

1,472

Number of cases in which information has
been exchanged with local governmentorganizations, etc., with regard to support
for mainstay operations

1,006

2,448

Kanagawa Prefecture and affiliatedorganizations / Kawasaki City
Local independent administrative agency
Kanagawa Institute of Industrial Science andTechnology

Technology support

Partnership,collaboration

Partnership,collaboration

・ Support for resolving management issues and businessexpansion for SMEs and micro-enterprises

Public interest incorporated foundation
Yokohama Industrial Development Corporation

Partnerships between industry and academia

Partnership, collaboration

・ Support problem-solving and opening of sales routes,
etc., by offering consulting functions to SMEs andmicro-enterprises

Financial institution partners, etc.
Support for work style reforms/securing of human resources

・ Support work style reforms and securing of humanresources for the small and medium-sizedenterprises(matching of human resources using grants andHello Work)SUMITOMO MITSUI
TRUST BANKSENSHU IKEDA HOLDINGS, INC.
THE SENSHU IKEDA BANK, LTD.

SKY OCEAN ASSET MANAGEMENT
CO, LTD.

Kirayaka Bank, Ltd. The Sendai Bank, Ltd.

Jimoto Holdings, Inc.

・ Supporting management issues of SMEs
(financing support, support for exchange of intellectual
property, support for start-ups, support for overseas
expansion, and support in areas such as hiring,
employment, and securing human resources)* Display those with which an “Agreement on aComprehensive Affiliation” have been concluded

28

Initiatives to support start-ups- Working to make Kiraboshi Bank the natural partner for start-ups Tokyo Kiraboshi FG■ Collaborate with Tokyo Metropolitan Government and external networks, and strengthen support structure for start-ups○ Provide a variety of solutions from the public, private, and banking sectors.
○ We will respond to the various needs of founders with a fusion of direct and indirect finance.
○ With the aim of making Kiraboshi Bank recognized among founders, entrepreneurs, and stakeholders as the natural partner for start-ups, we willreinforce our structures while developing various related measures.
<External start-up support agencies>
Preparation/
investigation

Drawing
up plans

Local governments, including the Tokyo Metropolitan
Government, and affiliated organizations

Cooperation,etc.

Various incubation facilities

Various kindsof support

Start-up companies
Rapidly growing
companies andorganizations facing thechallenge of creating
markets and businessmodels from scratch

Kiraboshi Consulting Co., Ltd.

Consulting

Collaboration

Start-Up Support Group/Sales offices
Investment

Tokyo Kanagawa Innovation Support Fund 1

Investment Limited Liability Partnership“ToKI Meki Oen Fund 1”
Total value ¥1.0 billion

Equity investment

Venture fundCollaboration

Founders,
entrepreneurs

Venture capital・Machida Business Development Agency
・Sagamihara Incubation Center, etc.

Various specialists
Tokyo Startup Station
Crowdfunding operations businessJapan Finance Corporation “Kiraboshi Start-up Support”
Tokyo Chamber of Commerce and Industry
Benchmark2016/32017/3

2018/3

247

288

3,012

Support for drawing up start-up
plans

31

41

1,529

Financing to customers during
start-up period

142

190

1,058

Introducing financial agencies
affiliated with the government andinstitutions supporting start-ups

54

53

276

Subsidies, financing, andinvestment in venture businesses

20

4

149

Number of start-up support cases
involving financial institutions

Start-up support basedon cooperation between
headquarters andbranches

Building networks
with incubators, etc.

Active participation inpitch events (sprout, etc.)

Conducting all kindsof seminars forfounders andentrepreneurs(Note) From 2018/3, the number of cases brought to sales offices is also included.

29

Strengthening support in the areas of medical/welfare and overseas expansion
Tokyo Kiraboshi FG■ In the specialized department for the medical/welfare field,
we will provide not only finance, but also multifaceted
assistance by supporting mainstay operations■ We will also utilize alliances with
Tomin Business Consulting Shanghai Co., Ltd,and the overseas branches of public bodies
The number of counterparties for Tokyo Kiraboshi
FG foreign exchange-related transactions(corporates, owner managers) was

Medical corporations, private practitioners,
and business operators in areas related tocaregiving

approximately 2,900

We have business tie-ups with the Bank of Beijing, the Bank of Dalian, the Bank ofNingbo, Ping An Bank, and the Bank of Jiangsu (Wuxi Branch)

Cooperation with Group
companies, etc.

Financing activities

Our customers’
Chinese offices

Specialized medical/
Welfare department
Collaboration with Medical andWelfare Administrative
Structure K.K.

BenchmarkNumber of consulting support deals withmedical and nursing care businesses

Shanghai local subsidiaryBusiness mediation
activities

2017/3Thailand Kasikornbank

Our customers’
other Asian offices

2018/3

27*

Bank Negara Indonesia

Unit: ¥100 million

Unit: million dollars

Export value

900

700

800

850
769

750

703

700

642

731

657

Planned annual increaseof approx. 5%

600

470

520

400
200

585

0

550

２０１７/３期
2017/3500
2013/3期
2013/3

2014/3期
2014/3

2015/3期
2015/3

2016/3期
2016/32017/3期
2017/3

2018/3期
2018/3

2019/3期
2019/32020/3期

2020/32021/3期
2021/3

Our track record in terms of trade transactions
handled is one of the best of all regional banks
nationwide.
(Results of the fiscal year ended March 31, 2018)
Import transactions (outward remittances/importsettlements)
Approx. 38,000
Export Transactions (incoming emittances / purchaseof export bills)
Approx. 12,000
Benchmark2017/3

2018/3

Number of deals to support
overseas expansion and overseas
transactions

455

519

Further enhance our track record in the top class of regional banks for
trade transactions by strengthening export transactions

950

600

The Philippines Metropolitan Bank and Trust Company

88

Loan balance in medical/welfare field (result/plan)

650

Bank for Investment and Development of Vietnam

State Bank of India*2017/3 result represents number of deals during the 6 month period from Oct. 2017 to Mar. 2018.

800(As of March 31, 2018)

２０１８/３期
2018/3２０２１/３期
2021/3

Number of exports
16,00014,00012,00010,000
8,000
6,000
4,000
2,000
0

Unit: number

15,00010,800２０１７/３期
2017/3

12,000２０１８/３期
2018/3２０２１/３期
2021/330

Strengthening solutions that make use of the trusts function
Tokyo Kiraboshi FG■ Utilize strength/know-how in trust functions within the Kiraboshi Bank branch network○ Strive to strengthen structural aspects, and further reinforce the products that differentiate us from other banks (Contrust)○ Expand revenue opportunities in real estate management trusts and create new revenue opportunities by developing new products“Contrust,” a public construction cost credit trust
Differentiation from and dominance over other banks■ This is a trust product that is backed by the credit strength of the entity

placing orders for public works, enabling contract payments for public
works to be converted into funds quickly and with agility■ On April 1, 2017, ordering entities covered by this product wereexpanded to allow it to be used with public works construction orders
placed by Taito Ward, Meguro Ward, Nakano Ward (all part of Tokyo)
and Kawasaki City (Kanagawa Prefecture.)(as of March 31, 2018, 48 local governments, etc.)■ Due to the merger, it becomes possible to develop services within the
Kiraboshi Bank network (increasing our dominance in the product thatdifferentiates us from other banks)
Value of Contrust investment trust agreements

227

2018/3
2018/3FY

355

Unit: ¥100 million

Real estate management trust
Expanded revenue opportunities■ Enhance real estate-related solutions menu of Kiraboshi Bank
(expand revenue opportunities)■ Advantages of real estate trusts① Because the real estate can be converted to a trust beneficiaryright and transferred to a third party, the off-balance sheet effectimproves financial indicators② Converting the real estate to a trust beneficiary right enables
diversification of funding measures③ By outsourcing administration related to possession of real estate,
the burden of clerical work is reduced

Real estate management trust agreements (cumulative)

366
5

2019/3FY
2019/32020/32020/3FY

FY3/2018
2018/3115
115

FY3/2019
2019/3

Unit: ¥100 million

215
215

FY3/2020
2020/331

Tokyo Kiraboshi FG■ Please direct any comments or questions about these briefing

materials or other IR topics to the IR office below.

Tokyo Kiraboshi Financial Group, Inc.
Corporate Planning Division
E-mail IR@kiraboshibank.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 includingchanges in the business environment.

32