Results briefing for the Fiscal Year Ended
March 31, 2015

June 10, 2015

Contents

Company profile…........................................................................................3◆ Overview of profit plan

Business environment in the Tokyo area…….………………….……………………...4

Interest income …………………………………………………………………………………..18◆Summary of business results

Loans…………………………………………………………………………………….…………….19

Summary of business results for the fiscal year ended
March 31, 2015 (FY2014) (Tokyo TYFG/ Total of Two Banks)…..….6
Summary of business results for the fiscal year ended
March 31, 2015 (FY2014)(Tokyo Tomin Bank, Limited/ Yachiyo Bank Limited………………..…..7
Plan for the fiscal year ending March 31, 2016………………………………..……..8◆Overview of business plan

Loans by industry ………………………………………………………………….…………..20
Deposits………….……………………………………………………………….....……………..21
Loan yield and deposit yield ………………………………………………………………..22

Securities……………………………..……………………………………………………………..23
Expansion of corporate customer base ……………………………………………….24
Expansion of individual customer base ……………………………………………….25

Overview of business plan……………….……………………………………………..…….10

Problem assets subject to disclosure under the Financial
Reconstruction Law and credit costs.………………………..…….………26

Management targets aimed for..……………………………………………....….……..11

Improving management efficiency………..………………………………….…………27

Provision of the financial platform service “Club TY”………………….….……..12

CSR initiatives…..…………………………………………………………………….……….....28

Strengthening of service as a financial partner………………………………...…..13
Strengthening profitability in the near term…………………………….…….…....14
Strengthen profitability through efforts at each bank…………….…….……...15
Position of the Group’s Medium-term business plan………………….….……..162

Company profile Major Group companies

 Management philosophy
To be a financial group for small and medium-sized enterprisecustomers and individual customers in the Tokyo metropolitan areathat will contribute to the development of local communities throughcomprehensive financial services.

Tokyo Tomin Bank

Yachiyo Bank Basic strategy
 As one of the largest regional financial institutions headquartered in Tokyo, wewill establish a new business model and increase our competitive advantage inthe urban-style regional banking market.

 Developments up until management integration
Tokyo Tomin Bank

(Established December 1951)

Yachiyo Bank

(Founded December 1924)

September 2000

Signed “Memorandum of Understanding Regarding Business Cooperation”

May 2001

Commenced free use of ATMs for each other’s customers

June 2001

Commenced common mailing system

 As a financial institution serving small and medium-sized enterprises andindividuals, we will increase our level of community contribution bydemonstrating our high-level financial service functions such as consulting andour function of providing stable financing.
 Against a backdrop of high profitability and soundness, we will work to lift the
motivation of our bank employees, and take up the challenge of our growthstrategies with a sense of unified purpose.

～ Sales of joint deposit products ～ Vision aimed for
November 2011,
February 2013

Joint holding of the TOKYO ECO STYLE exhibition

October 1, 2014

Tokyo TY Financial Group, Inc. established through the management integration of theTokyo Tomin Bank, Limited (Tokyo Tomin Bank) and the Yachiyo Bank, Limited(Yachiyo Bank)

Become the urban regional bank group most favoredby customers in the Tokyo metropolitan area.
3

Business environment in the Tokyo area
 Have branch network in the Tokyo area (note) with high market potential, and there are business opportunities including
supporting the advance of regional companies and individuals into the region in the future and the changes in the city inpreparation for the 2020 Olympics

 Tokyo area with high market potential
 Population (as of October 2014)
Prefecture or
Ranking administrative
division The 23 wards of Tokyo account for approximately
10% of the entire nation’s number of offices(Thousand)

1

Tokyo

13,3902

Kanagawa
Prefecture

9,090• 560,000 companies in the 23 wards of Tokyo(5.76 million companies nationwide)

Source: Statistics Bureau, Ministry of Internal Affairs and Communications

SaitamaPrefecture
Chiba
Prefecture Population growth rate (YoY change)

Prefecture or
Ranking administrative
division(10,000 offices)

1

Tokyo

70

4

Kanagawa
Prefecture31

Source: Economic Census

 Gross prefectural product (nominal) (FY2011)(%)(％)
10

8

Tokyo

6

Prefecture or
Ranking administrative
division

4
Kanagawa
Prefecture2
Sept./2010

Sept./2011

Sept./2012

Sept./2013

National
average

Source: Statistics Bureau, Ministry of Internal Affairs and Communications

Branch network
Kanagawa
Prefecture New housing starts (2014)
Prefecture or
Ranking administrative
division

1

Tokyo

92

4

Kanagawa
Prefecture30

Sept./2014-4

Tokyo Tomin Bank
Yachiyo Bank

• Tokyo
122 branches• Kanagawa Prefecture
35 branches• Saitama Prefecture 3 branches• Chiba Prefecture
1 branch(Thousands of units) Large-scale re-development is expected in preparation for the 2020 Olympics

1

Tokyo

142

2

Kanagawa
Prefecture

65(Trillion yen)

Tokyo

0
-2

 Number of offices (February 2012)• Economic effect of the Olympics: approximately 4 trillion yen*1• Government target for number of visiting tourists: 20 million people in 2020*2*1 Nationwide *2 Only Tokyo

Source: Ministry of Land, Infrastructure, Transport and Tourism

1) “Tokyo area” or “Tokyo metropolitan area” refers to the area centered around the city of Tokyo and the northeast of Kanagawa Prefecture.

Source: Cabinet Office, Government of Japan

 Number of university venture companies(FY2014)
Prefecture or
Ranking administrative
division(Number ofcompanies)

1

Tokyo

467

2

Kanagawa
Prefecture

113

Source: Nomura Research Institute4Summary of business results5Summary of business results for the Fiscal Year Ended
March 31, 2015 (Tokyo TYFG and total for both banks)
 Business results• Tokyo TYFG (consolidated) net income was 57.2 billion yen, due to factors including the recording of a gain on bargain purchase.
• In terms of the total for both banks, ordinary profit was up 3.6 billion yen as a result of fees and commissions covering for thedecrease in interest income, and a decrease in expenses and credit costs.
• Net income fell by 0.7 billion yen as a result of a 4.4 billion yen increase in total income taxes.
(¥ million)

Tokyo TYFG (Consolidated)

Total for both banks
Fy2013

FY2014FY2014

ChangeConsolidated ordinary income

65,043

Consolidated gross core business profit

54,488Net interest income

42,027

Net fees and commissions

10,515

Other

1,946

Ordinary income

84,90785,490583

Gross core business income

68,44668,452

6

Net interest income

58,04456,674(1,370)Net fees and commissions

8,174

9,727

1,553

Other

2,227

2,050

(177)

Expenses

55,70254,545(1,157)

Core business income

12,744

13,907

1,163

Gain (losses) on stocks and other securities

242

Non-recurring profit (loss)(5,027)(1,555)

3,472

Profit on investments based on the equity
method202

Ordinary profit

12,58016,194

3,614

Other

Extraordinary profit (loss)

(121)

(80)

41

Total income taxes

2,111

6,564

4,453

Net income

10,347

9,549

(798)

Credit-related costs

4,648

1,197

(3,451)

Expenses

42,370Credit-related costs

1,832

(711)

Ordinary profit

11,809Extraordinary profit (loss)

50,396

Gain on amortization of bargain
purchase

50,476

Total income taxes

4,870

Net income

57,290Capital ratio

9.26%*All figures less than 1 million yen have been rounded down in the amounts displayed above.

The following items are included in the
consolidated results of Tokyo TYFG.
• Consolidated results for Tokyo Tomin
Bank that is the acquiring company foraccounting purposes from April 2014 toMarch 2015
• Consolidated results for Yachiyo Bank
that is the acquired company foraccounting purposes from October
2014 to March 2015
• Non-consolidated results for TokyoTYFG from October 2014 to March2015• Other adjustments from consolidated
closing (gain on bargain purchase, etc.)

Gain on bargain purchase
Gain on bargain purchase is recorded
when the market value of the assets andliabilities of the acquired company
exceed the acquisition cost of shares
upon management integration.
The gain on bargain purchase has beenrecorded under extraordinary income inTokyo TYFG’s consolidated accounts.

6

Summary of business results for the Fiscal Year Ended
March 31, 2015 (Tokyo Tomin Bank and Yachiyo Bank) Individual business performance(¥ million)

Tokyo Tomin Bank (non-consolidated)
FY2013

FY2014

Yachiyo Bank (non-consolidated)

ChangeFY2013

FY2014

 Business results (Tokyo Tomin Bank)

ChangeOrdinary income

44,47944,477(2)

40,42741,012585

Gross core business income

37,02737,226

199

31,41831,225(193)

Expenses

29,43928,835(604)

26,262

25,710(552)Core business income

7,587

8,391

804

5,156

5,515

359

Non-recurring profit(4,807)(2,993)

1,814

(220)

1,438

1,658

4,753

6,826

2,073

7,827

9,368

1,541

Extraordinary profit (loss)

(80)

(66)

14

(41)

(13)

28

Total income taxes

450

3,277

2,827

1,660

3,286

1,626

Net income

4,222

3,482

(740)

6,125

6,067

(58)

Credit-related costs

3,261

1,526

(1,735)

1,387

(329)

(1,716)

Consolidated ordinary income

45,69145,937

246

41,18941,859670

Consolidated ordinary profit

5,957

8,069

2,112

8,327

9,957

1,630

Consolidated net income

4,952

4,269

(683)

6,366

6,380

14

Consolidated capital ratio

8.94%

8.35%

-0.59pt

10.19%

9.81%-0.38pt

Ordinary profit• Interest income fell by 0.3 billion yen
YoY.
• Net fees and commissions were up 0.8
billion yen YoY due in part to strong
sales in assets under management.
• With continued reductions in expenses,
core business income grew by 0.8
billion yen YoY.
• Credit costs fell 1.7 billion yen YoY.
• Ordinary profit grew 2.0 billion yen YoY.
• Net income fell by 0.7 billion yen as aresult of a 2.8 billion yen increase inincome taxes.

 Business results (Yachiyo Bank)• Interest income fell by 1 billion yen YoY.
• Net fees and commissions were up 0.7
billion yen YoY due in part to strong
sales in assets under management.
• Core business income grew 0.3 billion
yen YoY as a result of factors including a
0.5 billion yen reduction in expenses.
• Credit costs fell 1.7 billion yen YoY.
• Ordinary profit grew 1.5 billion yen YoY.
• Net income was mostly unchanged as aresult of a 1.6 billion yen increase inincome taxes.

*All figures less than 1 million yen have been rounded down in the amounts displayed above.

7

Plan for the fiscal year ending March 31, 2016
 Plan (Tokyo TYFG consolidated)(¥ billion)

FY2014 results

FY2015 plan (*2)

 Plan for the fiscal year ending March 31, 2016

Ordinary profit

11.8

12.9

Net income(*1) 57.2

8.5

5.56%

4.74%

ROE (consolidated andtotal for both banks)*1. Net income for the Fiscal 2014 results includes the one-time effect of a gain on bargain purchase of 50.4 billion yen.
*2. The Fiscal 2014 results contain the consolidated results for Tokyo Tomin Bank from April 2014 to March 2015 (oneyear), the consolidated results for Yachiyo Bank from October 2014 to March 2015 (six months), the nonconsolidated results for the Tokyo TYFG from October 2014 to March 2015 (six months), and other adjustmentsfrom consolidated closings, and accordingly one-time profits and losses have been recorded for this initial fiscal
year of management integration. For this reason, the YoY growth rate is not stated for the Fiscal 2015 plan.

 Plan and growth rate (Tokyo Tomin Bank)
Fiscal 2014
results(¥ billion)

March 2016
plan

Growth rate

• Tokyo TYFG (consolidated) projects ordinary profit of 12.9 billion yen and net
income of 8.5 billion yen.
• For Tokyo Tomin Bank, the projection is for net income to increase YoY despite an
expected decrease in ordinary profit due to factors including conservative credit
cost estimates.
• For Yachiyo Bank, the projection is for both ordinary profit and net income todecrease YoY due to conservative estimates for the gain on sale of bonds andcredit costs.

 Plan and growth rate (Yachiyo Bank)
Fiscal 2014
results(¥ billion)

March 2016
plan

Growth rate

Gross core business income

37.2

37.5

+0.8%

Gross core business income

31.2

31.4

+0.6%

Interest income

29.2

28.7

-1.7％

Interest income

27.3

26.7

-2.1%

Expenses

28.8

28.8

0%

Expenses

25.7

25.6

-0.3%

Core business income

8.3

8.6

+3.6%

Core business income

5.5

5.8

+5.4%

Credit costs

1.5

2.0

+33.0%

Credit costs

(0.3)

1.3

―

Ordinary profit

6.8

6.7

-1.4%

Ordinary profit

9.3

6.6

-29.0%Net income

3.4

4.3

+26.4%Net income

6.0

4.6

-23.3%

Ordinary profit (consolidated)

8.0

7.7

-3.7%

Ordinary profit (consolidated)

9.9

7.0

-29.2%Net income (consolidated)

4.2

4.8

+14.2%Net income (consolidated)

6.3

4.9

-22.2%* Figures have been rounded down to the nearest million yen.

8

Overview of business plan9

Overview of business plan
 Overview of business plan aimed at core business income of 20 billion yen
Tokyo TY Plan 2020 ～First Stage ～FY 2014

FY2015FY 2016

Maximize profits by strengthening profitability overthe near term

Tokyo TY Plan 2020 ～Next Stage ～FY 2017

FY 2018

Establish new financial services while
continuously working to strengthen profits

FY 2019

FY 2020

Expand profits and move to a new stageof growth by establishing services

FY 2020
Aim for core businessincome of 20 billion yen

10Management targets aimed for Breakdown of core business income of 20.0 billion yen aimed for in FY2020
FY2014 results(Year ended March 31, 2015)

Strengthening
profitability in thenear term

0 billion yen

0.1 billion yen

0.8 billion yen

Net fees and commissions

0 billion yen—

0.3 billion yen

Enhancing theoperational base

Interest income

Enhancing theregional financefunctionInterest income

Net fees and commissions

0.05 billion yen
Synergy
0.2 billion yen—

Net fees and commissions

Improving management efficiency
Strengthen
profitability throughefforts at each bank

FY2020 plan
(Year ending March 31, 2021)

Interest income

Synergy

Strengthening of service as a financial
partner

FY2016 plan
(Year ending March 31, 2017)

Expand profits

0.1 billion yen
Synergy
0.5 billion yen—

0.7 billion yen
Synergy
3.0 billion yen

—

—

—

0.4 billion yen

0.15 billion yen

0.1 billion yen

0.2 billion yen

0 billion yen

0.2 billion yen

0.7 billion yen(0.2 billion yen)

1.6 billion yen

2.6 billion yen

1.2 billion yen

1.7 billion yen

1.7 billion yen

13.9 billion yen

16.5 billion yen

20.0 billion yen

1.0 billion yen

Minimize costs

Core business income (core business income for FY2013 before management integration
was 12.7 billion yen)

Increase in corebusiness income
1.2 billion yen*Because no adjustments have been made for fractions, there may be discrepancies between the breakdown and total.

 Management targets aimed for in FY2020
FY2014 results (A)FY2016 plan (B)(B)-(A)FY2020 plan(C)-(A)

Account balance (outstanding)

4,502.5 billion yen

4,550.0 billion yen+47.5 billion yen

4,700.0 billion yen+197.5 billion yen

Loan balance (outstanding)

3,294.1 billion yen

3,350.0 billion yen+55.9 billion yen

3,500.0 billion yen+205.9 billion yen

Gross core business income

68.4 billion yen

70.5 billion yen+2.1 billion yen

73.0 billion yen+4.6 billion yen

Expenses

54.5 billion yen

54.0 billion yen-0.5 billion yen

53.0 billion yen-1.5 billion yen

Credit costs

1.1 billion yen

4.0 billion yen+2.9 billion yen

4.0 billion yen+2.9 billion yen

Net income

9.5 billion yen

10.0 billion yen+0.5 billion yen

12.5 billion yen+3.0 billion yen

OHR*

79%

76%

-3pt

72%

-7pt

Deposit-loan ratio

73%

73%

±0pt

74%

+1pt

*OHR = expenses ÷ gross core business income

11

Provision of the financial platform service “Club TY”
 Progress of measures aimed at core business income of 20 billion yen

Strengthening of service as a financial partner◆ Provision of the financial platform service “Club TY”
One-stop financial services corresponding to the various life stages and life cycles of SME
and individual customers
SME customers: Establishment in the Tokyo area + new entrepreneurship/business foundation (+further expansion into the Tokyo area)
Growth throughcorporate partnerships

Entrepreneurship/business foundation

Business plan
formulation
supportGrowthOverseas
expansion
support

Universitylaunched
venture support

Maturity

Business/specialist
matching

M&A support

Expansion in businesssuccession needs
among companies

Succession/restoration

Business
succession
consultations

Financing for social
welfare facilities

Urban
revitalization
financing・・・

By safeguarding the aspirations of our customers andconnecting them with reality, we provide one-stop
financial services that make the work and living of
SME and individual customers in the Tokyo area moreabundant.

Economicorganizations

 Number of exhibiting companies
Booth exhibitors: 114
Catalog exhibitors: 42
 Number of business consultations: 322

Financial platform service “Club TY”
Local
governments

Holding of TOKYO TY
Business Interchange 2015
(February 6, 2015)

Universities

Olympics andParalympics

 Number of visitors:
approximately 6,700

Specialists

Entrepreneurship/business foundation
Unsecured loans
MaekyuForeign currency
deposits

Students

New professionals

Housing-relatedloans

Newlyweds

Asset management
consultations

Testamentary
trusts

Reverse mortgages

・・・
Advance of
population aging

Child-rearing
generation

Elderly

Individual customers: Living/working in the Tokyo area(+ moving to the Tokyo area in the future)
At the Tokyo International Forum

12

Strengthening of service as a financial partner
 Progress of measures aimed at core business income of 20 billion yen

Strengthening of service as a financial partner◆ Expand scope of business by establishing
offices specializing in corporate finance◆ Establishment of the Club TY Support Team
(February 2015)■ Establish 5 to 10 offices specializing in corporate financeby consolidation in important and/or open areas■ Promote partnerships with external partners and the deployment ofknow-how and sales tools related to new initiatives to each branch■ Promote the effective use of customer needs■ Expand cooperative relationships with local governments, economic
organizations, etc.

 Assignment of approximately 30 members as Club TY Coordinators

 Commencement of studies for establishing offices specializing in corporate
finance in open areas of the 23 wards of Tokyo, the bay area, and along the
Odakyu Line and Keio Line Establishment planned from FY2016

 Coordination items• FA

Expand the sales network• M&A• Effective utilization of real estate• Foreign exchange sales

 Important areas and open areas• Reverse mortgages

 Relationship diagram of the Club TY Support Team
Branches

Open areas in the
23 wards of Tokyo

Specialists

Odakyu Line, Keio Line

Task force team aimed at
establishing a financial
platform service
Economicorganizations

Approximately
50 members planned
by FY 2020

Universities

External partners

Incorporate this in customer
service by providing sales
tools and providing guidance
to branches

Expand service bylistening to thevoices of customers• Foundation support, etc.

■ Results for the second half of FY2014
Item

Number ofreports

Number ofcontracts
closedBusiness matching

18

—

M&A

1

—

Foundation support

1—

Maekyu4—

Reverse mortgages

3—

Borrower introduction

6

1

Assets under management

11Tokyo TY lease introduction

71

36

Customers

Tokyo TYFG

Bay area inanticipation of the
Olympics• Maekyu

Promote partnerships withexternal partners
Local
governments• Business matching

Other
Total

4

1

109

39

13

Strengthening profitability in the near term Progress of measures aimed at core business income of 20 billion yen

Strengthening profitability in the near term
Enhancing the operational baseEnhancing the regional finance function

Improving management efficiency

 Maximize productivity by sharing sales
know-how and optimizing the sales structure
in each area

 Enhance customer service by sharing thestrengths of both banks

 Minimize costs by improving management
efficiency■ Sharing the strengths of both banks
Healthcare and social welfare, real estate-related finance,overseas expansion support, sales of financial products,
etc.

■ Streamlining and consolidation of shared operations, etc.
Improvements in the efficiency of headquarters, efficient
stationing of branches, and the streamlining andintegration of administrative expenses, etc.

 Implementation of mutual short-term human resource
assignments

 Commence concrete studies in working groups aimed at
reducing expenses

Division of branch roles(corporate-focused, individualfocused, etc.)

Sharing financeknow-how Commence studies aimed at optimization of the sales structure
by clarifying the division of branch roles (corporate-focused,
individual-focused, etc.)
 Conduct personnel exchanges aimed at sharing scale-basefinance know-how in order to increase visits to borrowers
 Handling of integration commemorative financial products• Provide funds of 100 billion yen to approximately 3,500
borrowers through both banks
 Introduction of Tomin Lease to the customers of Yachiyo Bank(Company name changed to Tokyo TY Lease in April 2015)

Tokyo Tomin Bank

Yachiyo Bank

• Medical and Welfare Division• International Division, Asia
Section• Loan Examination Division• Real Estate SalesManagement Office Implementation of mutual human resource assignments forClub TY representatives, Loan Examination Division, and Head
Office Business Division (from April 2015)
 Implementation of joint training, etc.
• Implementation of joint training involving observation of local
companies, etc. in Shanghai• Joint holding of seminars for business partners related toforeign exchange trends and conditions in Asia

• Improve the efficiency of the headquarters function
Assignment of approximately 100 headquarters employees tosales departments by FY2020• Efficient stationing of branches
Consolidation of 5 to 10 branches by FY2020 throughmeasures such as branches within branches and branch
consolidation• Consolidation and integration of administrative expenses
Integration of office equipment, etc.

• Integration of the administrative centers
Commence selection of candidate sites in an aim for
integration in FY2017• Integration of subsystems of both banks

 Handling of joint products including investment trusts andinsurance products

14

Strengthen profitability through efforts at each bank
 Progress of measures aimed at core business income of 20 billion yen

Strengthening profitability through efforts at each bank
Tokyo Tomin Bank

Yachiyo Bank Develop new business partners centered around the team dedicated to developing new corporate
customers(Teams established at the Ikebukuro, Higashi Shinjuku, Shibuya, and Kinshicho branches)
FY2014 results for new corporate customers: 1,215 customers; execution amount of 80 billion yen
 Strengthen proposal-based sales including business succession measures and M&As utilizing theBusiness Development Division■ Medical and Welfare
Division’s loan balance(¥ billion)
70
65
60
55
50
45
40
35
35.9
30
25
FY2008

 Strengthen structure of corporate business offices and promote the acquisition of new mid-size
corporate customers(¥ billion)(Customers)
371

80■ Acquisition of corporate
finance customers bycorporate business offices
Costs
Minimize Strengthen support for customers including medical corporations and social welfare service
providers centered around the Medical and Welfare Division
Steadily increase loan balances handled by business divisions

 Strengthen sales capabilities for corporate clients through the clarification of the division ofroles and the strategic stationing of personnel(Customers with annual sales of atleast 0.3 billion yen)

60

Customers
195

42

FY2010FY2012FY2014

300
200
40.6

20

Executionamount31.6

100

22.8 billion
FY2012

66.5

254

40

0

58.5

400

0
FY2013

FY2014

 Stretch sales personnel through efficient store deployment in consideration of branchcharacteristics• Adopt branches within branches format (three branches as of May 2015)• Migration to individual-dedicated branches (two branches as of May 2015)

 Support overseas business through the use of the Shanghai consulting subsidiary and business
partnerships with local regional banks

 Expand loans and secure yields through the use of financial products supporting customers able
to take risks

 Strengthen promotion of loans to individuals through Loan Plaza(Loan Plaza locations: Shinjuku, Shibuya, Nishi Kokubunji, Chofu, Wakabadai) Strengthen assets under management, foreign exchange, privately placed bonds, etc. forcorporate customers

 Achieve efficient stationing of personnel and reduction in branch expenses through thestreamlining of headquarters

 Promote sales of investment trusts by strengthening the sales structure for branches overall(Investment trust sales: 23.6 billion yen in FY2013 to 38.6 billion yen in FY2014)15

Outline of the Group’s Medium-term business plan Start of medium-term business plan
Yachiyo BankTokyo Tomin BankTokyo TPlan First Stage ～ Together with You ～Focus measures

Target 2020 ～ First Stage ～FY2015 - FY2016

 Expand sales base by strengthening financial services

 Enhancing the operational base

 Improving management efficiency

 Enhancing the regional finance function

 Building up vibrant human resources and organizations

Numerical targets(FY2016)

FY2015 - FY2016• Account balance• Core business income• Loan balance• OHR

Focus measures

 Improving management efficiency

2,466 billion yen
9.8 billion yen
1,900 billion yen
74% Human resources development and establishment of an
attractive corporate culture

Numerical targets(FY2016)• Account balance• Core business income• Loan balance• OHR

2,160 billion yen
6.9 billion yen
1,489 billion yen
78% range Position of the Medium-term business plan
FY2014FY2015FY2016FY2017 - FY2018

Tokyo TY Plan 2020 ～ First Stage ～Maximize profits by strengthening profitability
over the near term

FY2019 - FY2020
Next Stage

Establish new financial services
while continuously working tostrengthen profits

Expand profits and move to a new stageof growth by establishing services

Tokyo TPlan First Stage

Tokyo Tomin Bank

Creating solid foundations for being the number
one regional bankTarget 2020 ～ First Stage ～Yachiyo Bank

Period for the establishment of a robust businessfoundation in order to realize the vision

16

Overview of profit plan17

Interest income
 Status of interest income (total for both banks)
Account

Loans

Item

FY2013

FY2014

ChangeAverage balance

3,150 billion yen

3,220.3 billion yen+70.3 billion yen

Yield

1.62%

1.52%

-0.10%

Interest

51.1 billion yen

49.0 billion yen(2.1 billion yen)

Average balance

1,175.5 billion yen

1,157.6 billion yen(17.9 billion yen)

0.82%

0.88%

+0.06%

9.6 billion yen

10.2 billion yen+0.6 billion yen

4,362.5 billion yen

4,426.0 billion yen+63.4 billion yen

Yield

0.06%

0.05%

-0.01%

Interest

2.7 billion yen

2.4 billion yen(0.3 billion yen)

Yield

Securities

Interest anddividends
Average balance
Deposits

 Measures to improve interest income

 Interest income (Total of two banks)

 Secure loan yields by leveraging competitive advantages• By working to provide high-value-added service and fine-tuned support, improve
relationships of trust with customers and leverage competitive advantages in order toscale down the amount of reduction in loan yields.
 Flexible management of securities• Secure yields through flexible asset management while keeping a close watch on interest
rate trends.
 Improve procurement costs (the deposit yield) through measures such as reviewing
preferential interest rate products• Improve the deposit yield through means such as reviewing each preferential interest
rate deposit product and the interest rate premiums on large time deposits.

 Interest income (Tokyo Tomin Bank) Interest income (Yachiyo Bank)(¥ billion)(¥ billion)

70
60

58.8
8.3

50

58.1
9.6
Interest anddividends on
securities

56.8
10.2

55.6
10.3

53.7

20

51.1

(10)

30.8

30.2
3.4

29.9

30

Interest anddividends on
securities

29.4

30

3.1

4.3

4.9

25

25

Interest on loans

15
49.0

47.4

10
0

35

35

Interest on deposits

(2.4)

(2.1)

FY2012FY2013

FY2014FY2015 plan

*1. Other interest income is excluded.
*2. Interest on negotiable certificates of deposit is included.

29.6

28.0
Interest on loans

5.2

27.9

26.9

26.2

5.8

5.4

Interest on loans

22.3

21.8

(1.3)

(1.3)

(1.0)

FY2014FY2015 plan

6.1
Interest anddividends on
securities

15
26.7

2.55

10

10

5

5

0

(2.7)

(3.2)

28.0

20

20

40
30

(¥ billion)

40

(1.9)

(1.3)

(1.1)

(1.0)

0

24.1

(1.3)

Interest on deposits(5)

FY2012FY2013

FY2014FY2015 plan

23.0Interest on deposits(5)

FY2012FY201318

Loans Status of loans

 Measures to increase loans

 Because there was an increase for both SMEs and individuals YoY for the total
for both banks, there was a YoY increase of 35.4 billion yen in the outstandingbalance and 70.3 billion yen in the average balance.
 Because there was a slight decrease for both SMEs and individuals YoY forTokyo Tomin Bank, there was a decrease of 3.4 billion yen in the outstandingbalance. Nonetheless, there was an increase of 15.2 billion yen in the averagebalance.
 For Yachiyo Bank, there was a YoY increase of 38.8 billion yen in theoutstanding balance and 55.1 billion yen in the average balance due to anincrease mainly for SMEs as a result of factors such as efforts to strengthen thesales structure including the Corporate Business Office.

 Initiatives of Tokyo Tomin Bank
• Strengthen sales through new corporate branches in Ikebukuro, Higashi Shinjuku, Kinshicho,
and Shibuya and individual loan branches in Shibuya, Nishi Kokubunji, Chofu, and Wakabadai• Strengthen marketable loans and strengthen finance proposals such as business succession
and business revitalization

 Loan balance (total for both banks)(The numbers in white are average balances for the term;
the figures between the graphs are YoY changes)+70.3(+2.2%)(¥ billion)

4,000
3,500
3,000

3,285.9

3,220.3

3,069.4
3,163.8

3,258.7
145.7

+35.4

Local governments +5.6

151.3

5%

511.4

-8.4

503.0

15%

470.8

2,500

Medium and largesized companies

3,294.1100%

3,340.0

1,500

1,761.8
SMEs

 Loan balance by type of customer(Yachiyo Bank)(The numbers in white are average balances for the term;
the figures between the graphs are YoY changes)(The numbers in white are average balances for the term;
the figures between the graphs are YoY changes)

Composition+15.2(+0.8%)(¥ billion)

2,100

1,729.7
1,786.9

1,800
1,500

2,000
1,721.6

 Loan balance by type of customer(Tokyo Tomin Bank)

Composition

3,150.0

137.4

 Initiatives of Yachiyo Bank
• Strengthen development of corporate clients through the reassignment of personnel forclient development through the restructuring of the Corporate Business Office• Introduce financial products, enabling speedy support for customers able to take risks
 For the total for both banks, loans of 3,340 billion yen (+1.4% YoY) are projected for Fiscal
2015

80.6
282.2

1,780.6

1,765.4
1,831.5
90.8

1,829.3

1,828.1

100%

Local governments +1.6

92.4

5%

288.0

Medium and large- -1.1
sized companies

1,788.8286.9

1,376.8
56.8

16%

1,200

188.5

1,466.0

100%

+3.9

58.8

4%

-7.3

216.0

15%

+34.8

817.7

56%

+7.4

373.3

25%

1,427.2 +38.8
Local governments

223.3

1,456.6

1,439.6

1,384.5
54.9

Composition

1,470.0

Medium and largesized companies

900

54%

900

1,339.6
1,500

1,200
+27.0

1,800

1,870.0

-3.4

+55.1
(+3.9%)(¥ billion)

958.0

978.8
SMEs

-7.7

971.1

763.6

53%

782.9
SMEs

600
1,000
500

600
833.6

839.5
Individuals

+10.7

850.2

300

26%

300

Individuals

FY2012FY20130
FY2012FY2013

FY2014FY2015 plan

473.5

465.7

+3.4

476.9

26%

365.9

367.8

Individuals

FY2012FY201300
FY2014FY2015 plan

FY2014

March 2016 plan

19

Loans by industry
 Status of loans by industry

 Housing-related loan balance (total for both banks)(¥ billion)

 Industries are relatively diversified for both banks, and the balance of loans byindustry is composed of a well-balanced portfolio in terms of the total for bothbanks.

800
657.2

327.1

Tokyo Tomin
Bank

352.5

316.2

327.6

600
 There was significant growth in loans for the service industry, construction industry,
and individuals during Fiscal 2014 for the total of two banks.

680.1

633.9

341.0

400

 Housing-related loans have grown steadily for both banks.

200

306.8

Yachiyo Bank

FY2012FY20130 Loans by industry (total for both banks)(¥ billion)
3,500.0

3,000.0

Composition

3,163.8
359.8
158.7

2,500.0

2,000.0

FY2014

401.6
193.0

3,258.7

3,294.1

100.0%

349.5

Manufacturing

338.9

10.2%

159.0

Construction

170.0

5.1%

Commerce

391.4

11.8%

Banks and otherfinancial institutions

6.3%

Real estate brokerage

208.4
218.6

392.6
237.1
207.8

Real estate leasing

387.9

11.7%

276.1

290.3

Services

312.2

9.4%

Individuals

850.2

25.8%

369.1

391.9

Other

416.2

12.6%

FY2013

FY2014* The real estate industry has been demarcated into the real estate brokerage industry and the realestate leasing industry since Fiscal 2013.

6%

Banks and otherfinancial
institutions

Services

Commerce
9%

March 31,2015
1,466.0
billion yen

Individuals

25%

7%Real estate
brokerage

10%

FY2012

Construction

14%

March 31,2015
1,828.1
billion yen

500.0

0.0

11%

Commerce
Individuals

1,000.08%

OtherConstruction

26%

839.5

Manufacturing

12%
4%

390.5

833.6

 Composition of loans by industry(Yachiyo Bank)

Manufacturing

Other 14%

6.6%

571.5
1,500.0

 Composition of loans by industry(Tokyo Tomin Bank)Real estateleasing

8%5%Banks and otherfinancial
institutions

6%
Real estate
brokerage

Services

8%

Real estateleasing
17%

9%

20

Deposits Status of deposits

 Measures to increase deposits

 In terms of the total for both banks, there was a YoY increase of 54.7 billion
yen in the outstanding balance and 63.5 billion yen in the average balance.
 For Tokyo Tomin Bank, corporate and personal deposits were mostly flat, andfor deposits overall there was a YoY increase of 11.0 billion yen in theoutstanding balance and 29.3 billion yen in the average balance.
 For Yachiyo Bank, overall there was a YoY increase of 43.6 billion yen in theoutstanding balance and 34.2 billion yen in the average balance, as liquid
deposits increased, especially corporate deposits.

 Initiatives of Tokyo Tomin Bank
• Reinforcements through the handling of deposit products in line with the needs ofvarious generations, such as the “Second Life Oen-dan” retirement time deposit
product, “FC Tokyo Oen Teiki,” and the “Okurimono” tuition fund dedicated deposit
product.
 Initiatives of Yachiyo Bank
• Expand corporate deposits by promoting adoption as the main bank.
• Strengthen acquisition of pension payment accounts. (Reinforcement of dedicatedrepresentatives such as area pension representatives)

 For the total for both banks, a deposit balance of 4,570 billion yen (+1.5% YoY) is
projected for Fiscal 2015

 Deposit balance (total for both banks)(The numbers in white are average balances for the term;
the figures between the graphs are YoY changes)+63.5(+1.4%)(¥ billion)

5,000

4,362.5

4,396.3
70.8

4,447,8 +54.7
51.8 Other +16.8

1,223.5

Corporate

4,000 Deposit balance by type of customer(Yachiyo Bank)(The numbers in white are average balances for the term;
the figures between the graphs are YoY changes)(The numbers in white are average balances for the term;
the figures between the graphs are YoY changes)+29.3(+1.2%)

Composition

4,508.8

4,426.0

4,312.9

 Deposit balance by type of customer(Tokyo Tomin Bank)

4,502.5 100% 4,570.0(¥ billion)

2,700

68.6

2%

2,400

1,271.4 +33.5 1,304.9

29%

2,100
1,800

3,000

2,368.8

2,326.1

2,271.3

2,296.8

2,341.7
39.8

2,368.7 +11.0 2,379.7 100%61.9
43.7 Other +18.2
3%

856.6

875.0
Corporate

-5.0

+34.2
(+1.6%)

Composition

870.0

2,420.0(¥ billion)

2,400

2,041.6

2,1002054.6
31.0

1,800

366.8

2,065.7

Composition

2,140.0

2,099.9

2,150.0
2,079.1 +43.6 2,122.7 100%0%
6.6
8.1 Other -1.5
396.4 +38.4 434.8 20%

Corporate

36%

1,500

1,500
1,200
1,200

2,000
3,101.9

3,124.5
Personal+4.4

3,128.9

69%

600

1,000

900

900
1,445.2

1,450.0
Personal-2.3

1,447.7 61%

0FY2012FY2013

FY2014FY2015 plan

1,674.5 +6.7
Personal

1,681.2 79%

600
300

300
0

1,656.7

0FY2012FY2013

FY2014FY2015 plan

FY2012FY2013

FY2014FY2015 plan

21

Loan yield and deposit yield Status of yields

 Measures to secure yields

 While there has been a continued improvement in the economy, due to thefact that the impact on funding demand by SMEs has been limited andcompetition continues to intensify, loan yields continue to fall

 Through the promotion of Club TY, work to provide high-value-added service
and fine-tuned support, improve relationships of trust with clients andleverage competitive advantages in order to scale down the amount of
reduction in loan yields

 The deposit yield has decreased slightly due to factors including reviews of theinterest rate premiums on time deposits and an increase in liquid deposits

 Promote unsecured consumer loans
 Secure appropriate loan yields by ensuring that interests rates that correspondto the risk of the borrower are applied Improve the deposit yield through the review of interest rates on large-scale
deposits with high interest rates

 Yields (total for both banks)
FY2013

Loan yield
Deposit yield

1.62%
0.06%

 Yields (Tokyo Tomin Bank)
FY2014
1.52%

(%)

(%)

2.5

2.5

1.56%

Loan yield

Loan yield
2.0

1.71

0.05%
1.5

Loans and deposit
yield difference Yields (Yachiyo Bank)

1.47%

1.63

2.0
1.59
1.54

Yield difference

1.50
1.45

1.66
1.39

1.5

1.55

1.50

1.49

1.45

1.74
Yield difference

1.35

1.0

0.5

1.80

1.60

1.0
Deposit yield
0.08

0.5
0.05

0.05

0.04

0.0

Deposit yield

0.06

0.06

0.06

0.05

FY2012FY2013

FY2014FY2015 plan

0.0

FY2012FY2013

FY2014FY2015 plan

22

Securities Status of securities

 Securities investment policy In terms of the total for both banks, there was a YoY increase of 82.3 billion yen in theoutstanding balance and a YoY decrease of 17.9 billion yen in the average balance.
 For Tokyo Tomin Bank, there was a YoY increase of 73.1 billion yen in the outstandingbalance and 19.3 billion yen in the average balance due to an increase in investments inforeign bonds in an effort for investment diversification within a low interest rateenvironment.
 For Yachiyo Bank, while there was a YoY decrease of 37.2 billion yen in the average balance,
there was a YoY increase of 9.3 billion yen in the outstanding balance as a result of restraint
in investments in government bonds underpinned by steady loan management and a policyof diversified investment.

 Initiatives of Tokyo Tomin Bank
• Incorporate assets such as highly-secure corporate bonds to secure a higher
spread and conduct investment diversification in order to secure profitability.
• Continue to invest flexibly while adequately controlling investment volume
and risk.

 Securities balance (total for both banks)(The numbers in white are average balances for the term,
the figures between the graphs are YoY changes)

 Initiatives of Yachiyo Bank
• Secure earnings through a wide range of investments including foreign bonds
and investment trusts based on a policy of investment diversification.
• Expand the balance through flexible asset management while conducting
thorough duration management.

 Securities balance and yields Duration(Tokyo Tomin Bank) Securities balance and yields Duration(Yachiyo Bank)(The numbers in white are average balances for the term,
the figures between the graphs are YoY changes)(The numbers in white are average balances for the term,
the figures between the graphs are YoY changes)
5.7
5.5

5.2
4.5 years
3.5(¥ billion)

1,400
1,200
1,000

1,204.0
1,218.9
35.3
34.5
436.2

800

1,175.5
1,141.8
38.3 Other
39.5 Stocks
445.3
Municipal bonds
and corporate
bonds(¥ billion)-17.9(-1.5%)

1,157.6

Composition+82.3

1,224.1

100%

122.3
47.6

10%
4%

461.8

38%

600
400

1,000

800

600

200

549.8
557.4
10.4
26.1
144.8

592.2

48%

0.66

(¥ billion)

10,000

200

375.9

+19.3
(+3.6%)

Composition

586.2

100%

85.6
32.8

15%
5%

152.3

26%

Government
bonds

315.3

54%

FY2013

FY2014527.5
513.1
15.0 Other
26.3 Stocks
158.7

+73.1

6,000

313.0

0

0

FY2012FY2013

FY2014

8,000

546.8

Municipal bonds andcorporate bonds

618.5
Government
bonds

0.95%

0.80

0.80%

654.1

400
712.8

0.57

0.95

5.3 years

661.5
24.8
8.3
291.3

4,000

2,000

648.0

-37.2
(-5.7%)

628.6
23.2 Other
13.2 Stock
286.6

+9.3

Municipal bonds
and corporate
bonds

610.8

Composition

637.9
36.7
14.8

100%
6%
2%

309.4

49%

43%

305.5

336.9

Government
bonds

276.8

FY2012FY2013

FY20140

FY201223

Expansion of corporate customer base Measures for corporate clients
 Expansion of corporate customer base through “Club TY”• Promote further increases in the number of corporate clients and reinforcement of the corporate client
fee business by having Tokyo Tomin Bank and Yachiyo Bank take advantage of each other’s strengths

 Measures for corporate clients (Tokyo Tomin Bank)
 Promotion of loans in the medical and welfare industry
 Promote the position of medical and welfare industry as a growth field and as a local
industry for the Tokyo metropolitan area
 Support for customers including medical corporations and social welfare service providers
by the Medical and Welfare Division• Specialized financial products such as “Medical Support Long” with loan durations up to 30 years• Customer and branch support through specialized personnel with high levels of experience andexpertise• The loan balance as of March 31, 2015 was 66.5 billion yen (up 2.3 billion yen YoY).

 Measures for corporate clients (Yachiyo Bank)Takingadvantage ofeach other’s
strengths

 Foundation support
 Support through the Shibuya Start-up
Support Office Use of incubation facilities• Use of the Sagamihara Incubation Center• Use of the Machida Business Development Agency, etc.

 Overseas expansion support
 Overseas business support for customers mainly in Asia
• Use of Tomin Business Consulting Shanghai Co., Ltd., which is the only consulting subsidiary of aregional bank
• Partnerships with banks in Asian countries including China, Thailand, India, and Vietnam• Also dispatch human resources to local branches of Kasikorn Bank in Thailand Maekyu Promote the Maekyu service that enables salary payment at
any time as a means to expand the number of young customers
and approach new corporate clients.
* Maekyu is a new service for the regional bank industry that was developedby Tokyo Tomin Bank that makes it possible for employees to receive payment
before payday for the work they have completed.

 Business model patents acquired in June 2006
 The number of contracted companies and registrants has steadilygrown• As of the end of March 2015, there were 544 contracted companies
and approximately 650,000 registrants• The number of monthly users is 75,000, and this number has beenon the rise

Number of foundation support projects (FY2014)
Foundation finance96

Foundation subsidy application
support30

Support through the Shibuya Start-up
Support Office60

Incubation facilities partnerships

36

Information provision (seminars, etc.)

71

Total

293

 Partnerships with local municipal organizations, etc.
 Entered “Memorandum Concerning Business Partnership and Cooperation”• May 2012 Toshima-ku• June 2012 Machida-shi• December 2014 Atsugi Chamber of Commerce and Industry

 Partnership with the Institute of Industrial Promotion-Kawasaki
 Partnership with the Sagamihara Industrial Promotion Foundation, etc.

 Promotion of real estate-related finance Actively supporting local real estate businesses• In general, actively support diversified micro-crediting bases for customers that can be supported as
the main bank or as a secondary bank

 Strengthening consulting• Take maximum advantage of high levels of know-how related to real estate (284 personnel withregistered real estate broker qualifications) Provision of project funds that lead to housing-related loans24

Expansion of individual customer base Assets under management balance (total for both banks)

 Measures for individual clients
 Status of assets under management• As a result of focusing on sales in assets under management through efforts including the sales ofjoint investment trust products by both banks and the implementation of joint training, theinvestment trust balance grew 37.3 billion yen YoY in terms of the total for both banks.
• Commissions grew 1 billion yen YoY overall in terms of the total for both banks, mainly increasing forinvestment trusts.
 Sales structure for financial products to individuals[Tokyo Tomin Bank]• Sales are conducted by customer sales department personnel mainly at branches to visiting
customers, sales department personnel responsible for individual customers outside the branches,and money consultants who are dedicated contract staff responsible for personal sales.
In addition, asset management partners and asset management advisors who are mainly temporary
employees formerly employed at securities companies and similar companies are also stationed ateach branch.
[Yachiyo Bank]• An asset management manager and at least one asset management representative are assigned toeach branch. Furthermore, area money advisors who conduct activities spanning multiple branches
have been assigned since April 2015 to strengthen approaches to wealthy individuals whose businesshad not been captured up until then.

 Commissions on assets under management(total for both banks)(¥ billion)

10

7

7.16

8

6.14

7

5.47

6
5
4
3
2
1

1.11
0.04
1.37

1.02

Foreign currency
deposits

0.08

3

4.27
1.06
0.01

4.99

Publicbonds

Grand total

1

0.96

Foreign currency 0.02
deposits
0.02 Public bonds
0.75 Insurance

5.32

5.84

0.70

143.3

143.4

166.3

+22.9

Yachiyo Bank

42.5

46.4

60.9

+14.5

Total

185.9

189.9

227.2

+37.3

Tokyo Tomin Bank

128.0

118.6

114.5

-4.1

Yachiyo Bank

60.7

66.3

76.2

+9.9

Total

188.8

185.0

190.7

+5.7

Tokyo Tomin Bank

36.3

31.9

23.3

-8.6

Yachiyo Bank

80.9

72.2

59.3

-12.9

Total

117.2

104.2

82.7

-21.5

Tokyo Tomin Bank

307.7

294.0

304.2

+10.2

Yachiyo Bank

184.2

185.0

196.5

+11.5

Total

491.9

479.1

500.7

+21.6

 Commissions on assets under management(Yachiyo Bank)

2.25

2.0

1.25
1.5
1.0

3.16
2.48

2.5

0.65

3.75

Investment trusts

0.5

FY2013

FY2014FY2015 plan

Foreign currency
deposits

1.84
0.48

0.06 Public bonds
0.30 Insurance
0.81

1.24

Investment trusts

0.0

0FY2012

0.05
0.06

0.06

0.05 1.20
0.03

0.45

0

YoY
comparison

Tokyo Tomin Bank

0.86

0.72

2

Investment trusts

Insurance

FY2014

3.0

4.89

4

1.34

Investment
trusts

FY2013(¥ billion)

6
5

0.08

Public bonds
1.05 Insurance

3.97
2.93

8.09

0.75

FY2012

 Commissions on assets under management(Tokyo Tomin Bank)(¥ billion)

9(¥ billion)

FY2012FY2013

FY2014FY2015 plan

FY2012FY2013

FY2014FY2015 plan25

Problem assets subject to disclosure under
the Financial Reconstruction Law and credit costs
 Credit costs and credit cost ratio (total for both banks)

 Status of disclosure assets and credit costs
 Amount and ratio of problem assets subject to disclosure under the Financial
Reconstruction Law (after partial direct write-offs)• The disclosure assets amount fell by 17 billion yen YoY for the total for both banks.
• The disclosure assets dropped by 0.56 points YoY to 3.20%.
• The projection for Fiscal 2015 is in the 2% range for both banks.

(¥ billion)

0.32

12

0.14

9.8

10

0.10%

0.03

8
6.4

 Credit costs• Because the business conditions of borrowers continue to be relatively stable, credit costs
are low for both banks, and Yachiyo Bank has recorded a reversal of allowances.
• Based on conservative estimates for credit costs for Fiscal 2015, credit costs are projected toincrease compared to Fiscal 2014.

6

Tokyo Tomin Bank

4.6

3.3

4
2

3.2

3.3

Yachiyo Bank

1.3

0
FY2012(2)

FY2013

1.1

2.0

1.5
(0.30)FY20141.30
FY2015 plan

* Credit cost ratio = credit costs ÷ loan average balance Disclosure assets amount and disclosure
assets ratio (total for both banks)
4.33

3.76

(¥ billion)

150

4.84
3.20

138.1
9.1

120

2％ range(¥ billion)

7.8

3.94

90

123.6
Substandard
loans

70.9
106.6

3.3

4.6

60

3.66

114.3

30
0

103.4
Doubtful assets

57.9
93.3

30

3.19

3.2
Substandard
loans

3.90

(¥ billion)

2% range

90

67.6

90
60

 Disclosure assets amount and disclosure
assets ratio (Yachiyo Bank) Disclosure assets amount and disclosure
assets ratio (Tokyo Tomin Bank)

14.6

Bankrupt andquasi-bankrupt
assets8.6

FY2012FY2013

FY20140
FY2015 plan

2% range

67.1
59.0
60

2.9

5.7

55.9
4.5
Substandard
loans

47.6
1.7

56.6
Doubtful assets

51.1

30

56.3

46.8
Doubtful assets

7.7

12.3

3.22

42.2

4.5

9.6

Bankrupt andquasi-bankrupt
assets5.0

FY2012FY2013

FY2014FY2015 plan0

5.0Bankrupt andquasi-bankrupt
assets3.6

FY2012FY2013

FY2014FY2015 plan26

Improving management efficiency
 Status of core OHR

 Core OHR (total for both banks)

 Core OHR• Tokyo TYFG’s core OHR was 79.68%.
• Tokyo Tomin Bank’s core OHR fell 2.05 points YoY to 77.45% due to factors
including continued efforts to reduce expenses.
• Yachiyo Bank’s core OHR fell 1.25 points YoY to 82.33% due to factors including
continued efforts to reduce expenses.
• Further reductions in expenses will be targeted for through measures such as theconsolidation and integration of the headquarters function and administrative
expenses.

82.31

50

79.50

(¥ billion)

77.45

77% range

40

20

81.38%

79.68%

84.51

83.58

82.33

81% range

26.8

26.2 Expenses
1.1 Taxes
10.3

25.7

25.6

Non-personnel
expenses

10.0

50
40

30.2
30

Core OHR

FY2014

 Expenses and core OHR (Yachiyo Bank) Expenses and core OHR (Tokyo Tomin Bank)(¥ billion)

FY2013

1.1

29.4 Expenses
1.1 Taxes

30

1.3

1.1

14.5

15.2

Non-personnel
expenses

13.7

Personnel expenses

13.2

FY2012FY2013

FY2014

10

28.8

28.8

13.7

14.1

20
10

0

10.9

1.3

14.7

14.7

Personnel
expenses

14.3

FY2012FY2013

FY20140
FY2015 plan

FY2015 plan

* Core OHR = expenses ÷ (gross core business income - gains (losses) on government bonds, etc.) × 100

27

CSR initiatives
Stance of the Tokyo TY Financial Group towards CSR
The Tokyo TY Financial Group that aims to be the No. 1 urban regional bank views the implementation of CSR management and contributing to the formation of sustainable local
communities to be an essential management issue. Based on the management policy of “the development of local communities through the provision of integrated services as afinancial group for SMEs and individuals in the Tokyo Metropolis,” we have established the three action guidelines of “contributing to the regional economy,” “contributing to local
communities,” and “initiatives towards environmental issues,” and we will actively engage in CSR activities.

 Contributing to the regional economy
The Tokyo TY Financial Group supports people in the local
community through financial services and implements various
measures by leveraging its consulting function as it supports therevitalization of the regional economy so that people in local
communities can realize their dreams.

◆◆ Holding of TOKYO TY Business Interchange
2015
The TOKYO TY Business Interchange 2015 was jointly held byTokyo Tomin Bank and Yachiyo Bank in February 2015. It enabledextensive matching among the high number of visitors (6,700).

◆◆ Business succession, management consultation,etc.
◆◆ Facilitating financing and supporting therevitalization of the local communityetc.

 Contributing to local communities

 Initiatives towards environmental issues

The Tokyo TY Financial Group will work to improve convenienceand safety through the provision of high-quality service while
contributing to local communities through various communitybased initiatives in order to carry the aspirations of people in thecommunity into the next generation and develop together.

The Tokyo TY Financial Group will implement various initiatives toprotect the environment through local environmental conservation
activities and financial services in order to leave behind an
environment that allows for the safe and secure living of everyonein the community including the children that will lead the next
generation.

◆◆ Acquisition of certification as supporterof dementia◆◆ Participation in an Umi-no-Mori tree planting
event

In response to the advance of population aging,
Tokyo Tomin Bank and Yachiyo Bank have
implemented measures for the acquisition ofcertification as supporter of dementia in order tocontribute to the building of local communities
where people can live in security.

Employees of Tokyo Tomin Bank and Yachiyo Bank participated in atree planting event at the scheduled location for the Umi-no-Moripark in November 2014, during which employees conducted tree
planting activities.

◆ Initiatives aimed at juvenile and youth
development in cooperation with FC Tokyo,
a J. League team◆ Support for the Japan Football Association’s
Dream Class programetc.

Formation of sustainable local communities◆ Cooperation with the “Creation of Low-Pollen
Forests Fundraising” program◆ Joint cleanup activities with the NPO green bird
etc.

28

Thank you for attending this presentation today.

■ Please direct any comments or questions about these briefing
materials or other IR topics to the IR officer below.
Tokyo TY Financial Group, Inc.
Corporate Planning Division
The Tokyo Tomin Bank, Limited
Corporate Planning Division, Public and Investor Relations OfficeTEL+81-3-3505-2155
E-mail tomin.karita@nifty.com
tomin.arakawa@nifty.com
The Yachiyo Bank, Limited
Corporate Planning Division, Investor Relations Section
TEL+81-3-3352-2295
E-mail IR@yachiyobank.co.jp

This document contains forward-looking statements on theGroup’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.

29