Tokyo Kiraboshi Financial Group

Results Briefing for the Fiscal Year Ended
March 31, 2023

May 30, 2023

Contents
The Key Points of Todayʼs Briefing Session

P.3

Status of Progress on the Medium-Term Business Plan

P.4

Tokyo Kiraboshi FG Results for the Fiscal Year Ended
March 31, 2023

Corporate Customer Strategy ① (Loans)

P.25

Corporate Customer Strategy ② (Commission Income from
Corporate Customers)

P.26

Corporate Customer Strategy ③ (Private Equity Investment /Kiraboshi Capital)

P.27

Corporate Customer Strategy ④ (Trust Business, Medical,
Collaboration with Other Banks)

P.28

Retail Customer Strategy

P.29

Expenses

P.30

Summary of Business Results for the Fiscal Year Ended March 31, 2023

P.6

Summary of Business Results for the Fiscal Year Ended March 31, 2023
(excluding special factors)

P.7

Factors Affecting Net Income, Excluding Special Factors

P.8

Capital Policy

P.31

Profit from Customer Business

P.9

Shareholder Returns (Dividends)

P.32

Loans and Trust Assets

P.10

Balance of Deposits and Assets under Management

P.11

Income from Fees and Commissions

P.12

Securities

P.13

Securities (Foreign Securities)

P.14

Problem Assets Subject to Disclosure under the Financial
Reconstruction Act and Credit-Related Costs

P.15

Capital Ratio/Core OHR/ROE

P.16

Fiscal Year Ending March 31, 2024 Plan

P.17

Factors Affecting Net Income (planned) Excluding Special Factors

P.18<Reference> UI Bank Results

P.19

Progress on the Medium-Term Business Plan

The Kiraboshi Groupʼs Actions for the Future
Digital Strategy of Kiraboshi GroupP.34

UI Bank: Digital Bank

P.35

Kiraboshi Tech Inc.: Maekyu/LaLaPay

P.36

Business Collaboration with Shinhan Bank

P.37

Business Alliance with Mitsubishi Corporation ①

P.38

Business Alliance with Mitsubishi Corporation ②

P.39

Kiraboshi Bank: Next-Generation Branch / CRM System

P.40

Digital-based, Tokyo-based Platform Concept ①

P.41

Digital-based, Tokyo-based Platform Concept ②

P.42

Launch of the New Brand Project ①

P.43

Overview of the Tokyo Kiraboshi Financial GroupP.21

Launch of the New Brand Project ②

P.44

Management Base of Kiraboshi Group

P.22

Sustainability (Well-being and Human Capital Management ①)

P.45

Financial Targets under the Medium-Term Business Plan (KGIs)

P.23

Sustainability (Well-being and Human Capital Management ②)

P.46

Strategy of the Medium-Term Business Plan and Related Indicators(KPIs) ̶Initiatives to Address ESG/SDGs

P.24

Sustainability (Environment-Related)

P.47

Sustainability (Overseas Support/Business Start-Up Support)

P.48©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

2

The Key Points of Todayʼs Briefing Session
Business Results for the Fiscal Year Ended March 31, 2023
● FGʼs consolidated profit achieved a second consecutive year of increase, up ¥2.9 billion YoY to ¥21.1 billion.
 Kiraboshi Bankʼs non-consolidated net income increased significantly YoY, both including and excluding special factors.

● Kiraboshi Bankʼs profit from customer business (profit from main line business) increased significantly by ¥8.9 billion or 70.8% YoY,to ¥21.6 billion.
 Loan balance increased substantially reflecting efforts notably in transactions for main bank relationship building and business financing
activities such as business succession. There was also an increase in loan–deposit yield difference.

● Securities balance largely of government bonds and foreign securities decreased by ¥149.7 billion YoY when interest rates were on
the rise. Interest rate risk volume was reduced.
 Approximately ¥53 billion of foreign bonds were sold, avoiding negative spreads and bringing risks to an adequately controllable level.

● Dividend per share was increased to ¥115 yen annually, up ¥40 from the previous fiscal year, for the second consecutive year of
dividend increase.
 Paid out annual dividend of approximately 1.9 times higher than in the final fiscal year of the previous Medium-Term Business Plan (¥60)

Status of Progress on the Medium-Term Business Plan
● KGI: Income-related targets on track
 [ROE] 6.5% (+0.7% pt YoY), [consolidated profit] ¥21.1 billion (+¥2.9 billion YoY), [profit from customer business] ¥21.6 billion (+¥8.9
billion YoY)
 Issues are earnings contribution from Group companies and consolidated capital ratio● KPI: Generally in line with the 2024/3 plan, with productivity targets and corporate customer strategy targets in particular making
strong progress

The Kiraboshi Groupʼs Actions for the Future● Deepen efforts to create new values through digital-based fusion of “face-to-face and non-face-to-face” and “financial and nonfinancial.”
 Development of diverse operations such as expansion of UI Bankʼs and Kiraboshi Techʼs functions, organic cooperation between the two, and
BaaS-type services for foreigners
 Collaboration with the Shinhan Group in retail, digital, and financial ICT businesses
 Provision of Kiraboshi Groupʼs digital financial functions based on business alliance with Mitsubishi Corporation
 Progress of Tokyo-based platform concept● Launch of the new brand project Launch of “Letʼs commit, to TOKYO” project to instill the Groupʼs mission both internally and externally.
©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

3

Status of Progress on the Medium-Term Business Plan
Financial Targets (KGIs)<Achievement level: ◎...Surpassed; 〇...Achieved or nearly achieved;△...More work needed>
MTBP = Medium-Term Business Plan

2023/3＜Results＞

2024/3<MTBP>

①

5.4%

5. 9%

②

62.7%

57.3%

ー

504

467

ー

238

205

③

175

200

④

216

234

△

⑤

(15)

23

△

⑥

8.0%

8.3%

2022/3＜Results＞

2023/3<MTBP>

2023/3＜Results＞① ROE <consolidated>

5.7%

5.0%

6.5%

＋1.5%pt〇② Core OHR <Kiraboshi Bank nonconsolidated>

65.3%

59.8%

55.5%

＋4.3%pt

〇

514

485

504

¥(1.9) billion

237

203

238

¥(3.5) billion

181

160

211

+¥5.1 billion

〇

126

205

216

+¥1.1 billion

〇

1.2

4

(15)

¥(1.9) billion

8.4%

8.3%

8.1%

(0.2)%pt(Monetary unit: ¥100 million)[Ref] Expenses(Including non-personnel expenses)③ Net income <consolidated>④ Profit from customer business<Kiraboshi Bank non-consolidated>⑤ Contribution of subsidiaries toconsolidated income <consolidated>⑥ Capital ratio <consolidated>

Medium-Term Business Plan KPIs

② Productivity③ Life plan support
business

Achievement
level

Excludingspecialfactors<Achievement level: ◎...Surpassed; 〇... Achieved or nearly achieved; △...More work needed>

2021/3＜Results＞① Branch strategy

vs planExcludingspecial factors

2022/3＜Results＞

2023/3＜Results＞<Rate ofprogress>

Progress
Assessment

2024/3<MTBP>

Offices for corporate and retail customers, andoffices specializing in corporate customers

91 offices

50 offices

49 offices-〇

54 offices

Retail-focused branches

20 offices

56 offices

55 offices-〇

34 offices¥25 million¥29 million¥35 million

111%

◎

¥32 million

Number of transactions with business owners-+1,780+2,838

283%

◎

1,000

Balance of transactions with business owners-+¥17.9 billion+¥41.7 billion

83%〇¥50.0 billion

Kiraboshi Package (*)-

27,10744,99775%〇

60,000Gross core business profit per head

④ DX

Internet banking users⑤ Corporate
customerstrategy

Number of loans to customers with main bankrelationship having annual sales of ¥300 million
or moreAmount of loans to customers with main bankrelationship having annual sales of ¥300 million
or moreNumber of business succession support
customers
Number of medical transaction support
customers

76,000 users

151,000 users

246,000 users

61%△

400,000
users

-

+799

+2,130

355%

◎

600

-

+¥300.0 billion+¥734.3 billion

122%

◎

¥600.0billion

-

388

692

69%

〇

1,000

-

210

412

103%

◎

400

(*) Kiraboshi Package: Products and services mainly to address property management and property succession needsin the older adult segment©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

4Tokyo Kiraboshi FG
Results for the Fiscal Year Ended
March 31, 2023

©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

5

Summary of Business Results for the Fiscal Year Ended March 31, 2023
* For signs used in year-on-year comparison, “+” indicatesincrease in income, “( )” indicates decrease in income

Kiraboshi Bank results(non-consolidated)(¥100 million)

2023/3 full-year results①②

2022/32023/3(Actual)1
2Gross core business profit
Net interest income

4Interest on loans anddiscounts
Interest on securities

5

Other interest income

36

Non-interest income③(Initial plan)

2023/3

YoY（③－①）(Actual)Plan
achievement rate
（③／②）

786

849

907

+120

106.9%

656

715

744

+87

―

498

553

572

+74

―

151

187

192

+40

―

6

(25)

(21)

(27)

―

129

133

163

+33

―
―

7

Expenses

(514)

(485)

(504)

+9

8

Net core business income

272

364

403

+130

110.7%

9

Credit-related costs

(63)

(60)

(20)

+43

―

10 Gains (losses) on bonds

(1)

10

(50)

(48)

―

44

10

48

+3

―

8

(8)

(15)

(23)

―

260

315

365

+105

116.0%

(1)

(1)

15

+17

―

15 Income taxes

(73)

(76)

(107)

(33)

―

16 Net income

184

237

274

+89

115.7%

Gains (losses) on stocks andother securities
12 Other non-recurring profit (loss)
11

13 Ordinary profit
14 Extraordinary profit (loss)

Tokyo Kiraboshi FG
results (consolidated)(¥100 million)

2022/3(Actual)②2023/3(Initial plan)③

2023/3(Actual)

YoY
（③－①）

Gross core business profit

90.7 billion¥（＋15.3％ YoY）

Net core business income

40.3 billion¥（＋47.8％ YoY）

Ordinary profit

36.5 billion¥（＋40.5％ YoY）

Net income

27.4 billion¥（＋48.3％ YoY）

Tokyo Kiraboshi FG

2023/3 full-year results①

Kiraboshi Bank

Plan
achievement rate
（③／②）

1

Ordinary profit

249

278

307

+58

110.6%

2

Profit attributable toowners of parent

181

195

211

+29

108.4%

Profit attributableto owners of parent

21.1 billion¥（＋16.3％ YoY）
©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

6

Summary of Business Results for the Fiscal Year Ended March 31, 2023
(excluding special factors)
Kiraboshi Bankʼs net income was +¥8.4 billion YoY due largely to increase in interest on loans and discounts and decrease in creditrelated costs
Tokyo Kiraboshi FGʼs profit increased significantly over the previous fiscal year, +¥5.9 billion YoY
Kiraboshi Bank results (non-consolidated)* For signs used in year-on-year comparison, “+” indicates increase inincome, “( )” indicates decrease in income(¥100 million)

2023/3 full-year results①(Actual)Of which,
specialfactors2022/3②

Results
excludingspecial factors

2023/3(Initial plan)

Of which,
Plan excluding
specialspecial factors
factors③

2023/3

Of which,
specialfactors

Results
excludingspecial factors

YoY
（③－①）

Achievement Rate（③ / ②）102.5%(Actual)1

Gross core business profit

786

30

756

849

64

784

907

103

803

+47

2

Net interest income

64

―

744

64

679

+52

―

―

572

―

572

+74

64

127

+5

―

(21)

(27)

39

124

(5)

656

30

626

715

Interest on loans anddiscounts

498

―

498

553

4

Interest on securities

151 *1

30

121

187

5

Other interest income

6

―

6

(25)

3

6

Non-interest income

*4

64

―

―

192

―

(21)

*4

*5

129

―

129

133

―

―

163

―

―

(504)

―

(504)

+9

299

403

103

299

+56

―

(20)

―

(20)

+43

(39)

(11)

(9)

7

Expenses

(514)

―

(514)

(485)

8

Net core business income

272

30

242

364

(63)

―

(63)

(60)

―

(1)

10

―

―

(50)

42

1

10

―

―

48

―

48

+46

8

―

8

(8)

―

―

(15)

―

(15)

(23)

260

72

187

315

250

365

64

300

+113

―

(1)

(1)

―

―

15

―

15

+17

(13)

(60)

(76)

―

―

(107)

―

(107)

(46)

59

125

237

172

274

64

209

+84

9
10
11
12

Credit-related costs
Gains (losses) on bonds
Gains (losses) on stocks
and other securities
Other non-recurring profit(loss)

13 Ordinary profit

(1)
44

14

Extraordinary profit (loss)

(1)

15

Income taxes(73)

16 Net income

184

*2

*2

Tokyo Kiraboshi FG results (consolidated)

64

―

64

64

(¥100 million)(Actual)Of which,
specialfactors

Results
excludingspecial factors②

2023/3(Initial plan)*2: ¥4.2 billion as gain ontransfer of Kiraboshi Tech
shares from Kiraboshi
Bank to Tokyo Kiraboshi
FG. Associated income
taxes of ¥1.3 billion(special factor).

100.1%

120.3%

121.8%Of which,
Plan excluding
specialspecial factors
factors③

2023/3

Of which,
specialfactors

Results excluding
special factors(Actual)

YoY
（③－①）

Achievement rate（③ / ②）

1

Ordinary profit

249

65

184

278

35

243

307

35

272

+87

111.9%

2

Profit attributable toowners of parent

181

65

116

195

35

160

211

35

175

+59

109.9%*3*7*7*3, *4: In FY2022/3, Tokyo
Kiraboshi FG posted ¥6.5
billion of equity method
investment profit (profit
from sale of real estate
by a subsidiary of anequity method affiliate),
which Kiraboshi Bank
received in FY2023/3 andposted as ¥6.4 billion in
dividend.
*5: ¥3.9 billion posted asgains from derivatives
transactions associatedwith unwinding of asset
swaps, etc.
*6: *5 is posted to this itemas net amount.

2023/3 full-year results①

2022/3*6*1: Received retained
earnings of ¥3.0 billion as
special dividends fromsubsidiaries (two credit
guarantee companies).

*7: ¥3.5 billion in profit fromsale of real estate by a
subsidiary of an equity
method affiliate posted as
equity method
investment profit.

©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

7

Factors Affecting Net Income (Kiraboshi Bank), Excluding Special Factors
Main Items

YoY❶ Interest on loans

Key Points＋7.4 billion

Interest and dividends on+¥7.4 billion YoY due to increase in loan balance that largely reflected initiatives such as
promotion of transactions for main bank relationship building and business financing activities,
as well as rise in loan yield.

❷ securities＋¥0.5 billion+¥0.5 billion YoY due notably to higher yields on securities❸ Other interest income¥(2.7) billion❹ Non-interest income¥(0.5) billion❺ Expenses＋¥0.9 billion❻ Credit-related costs＋¥4.3 billion¥(2.7) billion YoY partly due to an increase in foreign currency funding costs and interest
payment to UI Bank on borrowed money.
¥(0.5) billion YoY due in part to a decrease in domestic remittance fees resulting from reduction
in fund transfer charges and other causes.
+¥0.9 billion YoY partly reflecting ¥3.7 billion of proactive investments such as in DX initiatives,
while personnel expenses decreased as a result notably of headcount decrease due to cutback
on hiring aimed at improving management efficiency.
Credit-related costs improved by ¥4.3 billion YoY, attributable to such factors as reduced
provision rate due to lower default rate, reversal of additional provision made in consideration of
the impact of Russia-Ukraine situation (+¥0.6 billion) and other ongoing efforts to enhance thecredit management system.

❼ and other securities

Gains (losses) on bonds, stocks,＋¥3.7 billion❽ Other non-recurring profit (loss)¥(2.3) billion

Extraordinary income (loss) /¥(2.9) billion❾ Income taxes+¥3.7 billion YoY due largely to increase in gain on sale of stocks held for investment purposes.

+¥1.7 billion YoY in extraordinary income attributable largely to +¥1.5 billion in gain on returnof assets from retirement benefit trust, while income taxes were ¥(4.6) billion YoY.

＋¥8.4 billion

Year-on-year changes

Diff. b/w consolidated and non-consolidated(¥100 million)

Net income(¥100 million)

Net
incomeInterest
on loans❶

2022/3

Interest on
securities

❷

Other
interest
income❸Non-interest
income❹Expenses❺Creditrelated
costs

❻

Other nonGains (losses) recurringon bonds,
profitExtraordinary
stocks, and(loss)
incomeother(loss) /securities
Income taxes

❼

❽

❾

2023/3

Kiraboshi Bank (non-consolidated) net
income209

Groupʼs consolidated net income [of which, effects of startup deficit of newly-established companies, etc.: ¥(3.4)
billion](16)

Elimination of internal transactions between consolidated
Group companies
Variance in gain on sale due to variance in book value of
securities, etc. (¥(1.5) billion)(18)

Tokyo Kiraboshi FG (consolidated) net
income175(Note) For signs before the numbers, “+” indicates increase in income, “( )”indicates decrease in income©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

8

Profit from Customer Business (Kiraboshi Bank)
Profit from customer business(¥100 million, %)Breakdown of factors● Profit from customer business (profit from mainline business) was ＋¥8.9 billion YoY (+70.8%)2022/32023/3YoY① Loan balance (closing balance)

43,69747,353+3,656② Loan–deposit yield difference

1.19

1.25

+0.05

115

127

+12

511

503

+7

126

216

+89

③

 Loan balance (closing balance) was+¥365.6 billion YoY④

 Income from fees and commissions was+¥1.2 billion YoY

Income from fees andcommissions
General and administrative
expenses(expenses + temporary treatment of
retirement benefit expenses, etc.)from customer business⑤ Profit（①×②＋③－④）→ Domestic remittance fees decreased resulting partly fromreduction in fund transfer charges, while commission income
from corporate customers increased by ¥1.8 billion YoY due
notably to fee income from transactions for main bankrelationship building and business financing activities

Loan balance / yield

MTBP

Revised Plan

Loan yield

1.26%

1.33%

Yield difference

1.25%

1.30%

1.26

Loan yield(¥100 million)(¥100 million, %)

1.19

1.18

1.21
1.25

[Revised plan]

249

YoY

216

＋8.9 billion[Initial plan]234（1.7 times）

126

1.17

1.17

Loan–deposit
yield difference

47,353

Average balance

Initialplan
205

45,15639,08214

2020/32021/3

48,373

Closing balance

41,167

9[Revised plan]
Average balance

1.19

44,344[MTBP]
Average balance

36,9632022/32023/32024/3[Planned]* Calculation method: (loan balance x loan and deposit rate margin) + income fromfees and commissions - general and administrative expenses

2020/32021/3(Average balance)(Average balance)

2022/32023/32024/3(Average balance) (Left: average balance, (Average balance)right: closing balance)[Planned]©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

9

Loans and Trust Assets
Loan balance increased as a result largely of efforts in promotion of transactions for main bank relationship building
and business financing activities, while loan yield rose
Balance of trust assets showed solid growth, led by real estate management trust against the backdrop of the realestate market in the Tokyo area

1. Loan balance by type of customer (¥100 million)

2. Net interest income (¥100 million)

1.26
1.19

Loan yield(%)
Loan–deposit
yield
difference (%)

1.17

1.18
1.18

1.21

37,698
1,423
<3％>
4,692
<12％>

39,380
1,174
<2％>
4,577
<11％>

1.25

1.19
43,697
1,033
<2％>
5,782
<13％>

564

587

136

125

441

463

(13)

(2)

2020/32021/3656
6OthersNet
interest
income

744
192

151

YoY

（+87）
Interest on
securities* Including special
factor of ¥6.4 billion

YoY

47,353（+3,656）880<1％>

Local governments

6,230
<13％>

Medium- andlarge-sizedcompanies

498

572

(21)

2022/32023/3

3. Balance of trust assets (¥100 million)

Interest on loans
and discounts

Other interest
incomeYoY

1,134 （+312）

23,892<63%>

26,327<66％>

29,881<68％>

33,232
<70％>

822

SMEs

445

414

237

283
897

7,689

294

<20％>

7,300
<18％>

6,999
<16％>

7,011
<14％>

2020/32021/32022/32023/3* Excluding UI Bank
* Figures in < > indicate composition ratio

Individuals

151

2020/3

170

Public works costreceivables trust,
etc.

539

Real estate
management
trust

244

2021/32022/32023/3©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

10Balance of Deposits and Assets under Management(Kiraboshi Bank + UI Bank + KLD Securities)
Robust accumulation of deposit balance at UI Bank (¥335.8 billion as of Mar. 31, 2023); + ¥500.1 billion YoY for the Group as a whole
Balance of assets under management on the rise, led by Kiraboshi Life Design Securities

1. Deposit balance by type of customer

2. Balance of assets under management by item

(Kiraboshi Bank + UI Bank) (¥100 million)
Loan-todeposit ratio
(%)
80.4

84.6
79.0

80.2
56,936

46,6032,065<4％>14,695<31％>(Kiraboshi Bank + KLD) (¥100 million)

50,0331,884<3％>17,547<35％>

51,934
1,393<2％>

18,776
<36％>

3,398

1,362

3,358

<2％>

<5％>

30,60130,40230,210

<64％>

<61％>

<58％>

<53％>

（+5,001）

2022/32,028

ＫＬＤ （*）

342

325

262

Public bonds

2,318

2,338

2,374

Insurance

1,525

1,461

1,367

Investment
trusts2021/32022/32023/3

4,626

Others（+177）

5,266

276
Corporate

1,079

2,441
UI Bank

Personal
deposits
includingdeposits in UI
Individuals
Bank

1,908

33,569<58%>2021/3

1,731

5,856

<35％>

29,841

2020/3

YoY

YoY

<5％>

19,9686,033

2023/3* Loan-to-deposit ratio is calculated from the sum of Kiraboshi Bank and UIBank (based on average amount outstanding)Excluding loans from UI Bank to Kiraboshi Bank* Deposit balance includes balance of negotiable certificates of deposit* UI Bank started operation in January 2022
* Figures in < > indicate composition ratio

2020/3* KLD: Kiraboshi Life Design Securities Co., Ltd.
* Kiraboshi Life Design Securities started operation in August
2020©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

11

Income from Fees and Commissions
Growing trend notably in commission income from corporate customers reflecting promotion of transactions formain bank relationship building, business financing activities and other initiatives
Commission income from retail customers remaining generally flat due to shift to sales approach focusing on
outstanding balance and not dependent on sales commissions

1. Income from fees and commissions

2. Commission income from corporate customers(Kiraboshi Bank) (¥100 million)(Kiraboshi Bank) (¥100 million)

77
2
7

58
* April – July 2020
Investment trust sales commission cash backcampaign* August 2020
127
Kiraboshi Life Design Securities
starts operation

（+12）

29

<22％>

Others2020/3

6
7
15

61
42
3

2021/34

52022/32023/3Main bankrelationshipbuilding,
businessfinancing, etc.
Business
matching(excluding Kiraboshi Life Design Securities）(¥100 million)

36

34
<38％>

77

32

58

<28％>

Corporate

<60％>

0
9

<50％>

33

27

<37％>

* April – July 2020
Investment trust sales commission cash back campaign* August 2020
Kiraboshi Life Design Securities starts operation
YoY

20

21

21

（+0）

1
5

1

0

Others810Life insurance

9

Investment trusts

13

36
21

20

<18％>

<22％>

2020/333

Privateplacement bonds
ABL, etc.

3. Commission from retail customers

<30％>

<36％>

<32％>

3
7

（+18）

* Breakdown is based on management accounting figures

35

88

32
8
6
14 3

115

111

41

YoY

YoY

2021/321

Individuals

10

<16％>

2020/32022/3* Figures in < > indicate composition ratio

2023/3

11

3

2

2

2021/32022/32023/3

Of which, investment
trust salescommission* Breakdown is based on management accounting figures(Ref) Kiraboshi Life
¥0.2 billion
Design Securitiesʼ income¥0.8 billion¥1.0 billion©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

12

Securities
Securities balance mainly of government bonds and foreign securities decreased as interest
rates were on the rise. Interest rate risk volume was reduced.
1. Securities balance / yield (¥100 million, %)
1.30

9,491
2,443
270
3,700
529
2,537

2020/3

1.33

10,204

1.50

2.04

1.20

1.35

10,055

3,901

3,979

419

419

3,155

2,765

653

627

2,074

2,264

2021/32022/3

2. Valuation gain/loss on securities (¥100 million)
216

Yield excluding¥6.4 billion in
dividend fromequity-method
affiliate (special
factor)

8,558

138

64

47

YoY

[(1,497)]
102

3,459

Available
for-salesecurities

506

StocksStocks100

Foreign securities
Investment trusts
REITs
PE funds, etc.

2,494

Corporate
bonds

623
1,473

Municipal bonds

54

Bonds

62

Others

(11)

Bonds

(6)

(104)

97

Stocks(19)

Others101(6) Held-to-(111) Others

maturity
bonds

Government bonds(82)

2023/3

3,979

263

408

Government
bonds
Municipal bonds
Corporate bonds

bonds

2020/3
3,459
PE funds, etc.

2021/32022/33. Duration (years)

2023/3

4. Interest rate sensitivity

502

2,443
235

Bonds

Foreign securities
Investment
trusts
REITs
PE funds, etc.

(12) Held-to-maturity

Breakdown of “available-for-sale securities”
3,901

Stocks

2,273

2,157

1,571

Foreign securities

4.1

1,516
684
437
253

679

2020/32021/3827
585

2022/3898
487

2023/3

6.1

6.7

REITs
Investment trusts

0.9

3.9

3.9

2022/36.0

2023/3

Japanesebonds

Japanese¥(4.0) billion
bonds¥(2.8) billion

Foreign

Foreignbonds¥(0.3) billion

2.8 bonds

2020/3 2021/3 2022/3 2023/3¥(0.6) billion* Effect of an upward parallel shift of interest
rate by 10bp
* Excluding investment trusts©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

13

Securities (Foreign Securities)
A loss of ¥7.3 billion was recorded from sale of approx. ¥53 billion of foreign bonds
Moved forward with funding from relatively low-cost foreign currency deposits, through which
it has been possible to avoid negative spread in FY2022
1. Foreign securities

2. Composition of investment and funding in U.S. dollars(¥100 million, year)① Balance of foreign securities
held2022/6
Investment

YoY

1,145
USD million[(586)]
2,273

1,571
100%

2020/32021/32022/3② Gains or losses on valuationof foreign securities

Funding

Floating
rate bonds
34％
(387)

[+17]

(91)

(74)

2020/32021/32022/32023/3〈2.70％〉

50%

2023/3Funding

Investment

1,041
USD million

970
USD million

Others
15％
(157)
100%

YoY

(30)

1,041
USD million〈2.30％〉

2023/3(12)

Investment

1,145
USD million

Others
8％
(90)

2,157

1,516

2022/12〈4.71％〉

Floating
rate bonds
34％
(357)
〈5.02％〉

Fundingfrommarkets,
etc.
54％
(558)
〈4.75％〉

50%

50%〈1.68％〉
Fixed rate
bonds
58％
(667)

③ Foreign bond duration〈1.48％〉

0.9

3.9

3.9

2.8
0%

2020/32021/32022/32023/3Foreigncurrency
deposits, etc.
17％
(195)
〈0.01％〉

Yield on interest- Yield on interestearning assets bearing liabilities

1.96％

1.40％

Fixed rate
bonds
50％
(525)
〈1.34％〉

Funding
970
USD million

Others
18％
(178)
100%

Fundingfrommarkets,
etc.
83％
(949)

* Figures in ( ) indicate balance(USD million), figures in < >indicate average yield on interestbearing liabilities

Foreigncurrency
deposits,
etc.
46％
(482)

〈4.83％〉

Floating
rate bonds
37％
(359)

Fundingfrommarkets,
etc.
48％
(471)

〈5.68％〉〈5.10％〉

Fixed rate
bonds
44％
(431)

Foreigncurrency
deposits,
etc.
51％
(498)

〈1.45％〉〈1.18％〉

0%〈1.42％〉

0%
Yield on interest- Yield on interestearning assets bearing liabilities

3.11％

3.10％

Yield on interest- Yield on interestearning assets bearing liabilities

3.64％

3.21％

* Foreign currency deposits, etc. include yen converted to foreign currency©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

14

Problem Assets Subject to Disclosure under the Financial Reconstruction Act andCredit-Related Costs
Ratio of problem assets subject to disclosure decreased significantly YoY due partly to an increase in normal assets and improvement in somecustomersʼ credit category
Credit-related costs were restrained substantially YoY as a result of enhancement of the credit management system and other efforts

1. Value and ratio of problem assets
subject to disclosure (¥100 million, %)
1.93

2.50

2.70
1,194

1,002
743

84

875

2022/32023/3

Provision of generalallowance for loan losses

16

(25)

(42)

Disposal of non-performing
loans

47

46

(1)

Of which, provision ofallowance forindividual loan losses

44

42

(1)

Reversal of allowance forloan losses

ー

ー

ー

Credit-related costs

63

20

(43)

2.19
1,045
76

68

60

3. Credit-related costs (¥100 million)

1,051

873

631
51

57

58

95

2020/32021/32022/32023/3

YoY[(148)]

Substandard
loans

Doubtful
assetsBankrupt
assetsYoY* Figures are after partial direct write-offs

2. Coverage status of problem assets
subject to disclosure (¥100 million)
2022/32023/3

1,053

917

Reserve for possible loan
losses236

211

Collaterals, guarantees,
etc.

817

705

Total of substandard loans
and below (B)

1,334

1,178

Coverage ratio (A) / (B)78. 9%

Covered amount (A)77. 8%[Value and ratio of problem assets subject to disclosure]
Value of problem assets subject to disclosure decreased due
partly to improvement in some customersʼ credit category. Ratioof problem assets subject to disclosure decreased by 0.51
percentage points YoY due to increase in normal assets and adecrease in problem assets subject to disclosure.
[Credit-related costs]
・ Allowance ratio decreased due to decline in the default rate.
・ Reversed additional provision made at the end of the previous
fiscal year in consideration of the Russia-Ukraine situation.
Combined with continued efforts to enhance the credit
management system, credit-related costs improved by ¥4.3
billion YoY.
* UI Bank is excluded from all figures on this page
©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

15

Capital Ratio/Core OHR/ROE
Capital increased, while capital ratio declined due to increase in risk assets notably exposure to corporate customers
OHR and ROE improved significantly during the current Medium-Term Business Plan period (from FY2021) reflecting improved
management efficiency and profitability

1. Capital ratio (Tokyo Kiraboshi FG consolidated)(¥100 million, %)2. Core OHR (Kiraboshi Bank) (%)* Core OHR =

8.65

8.74

8.41

77.0

8.15

75.7

65.3

59.8

Risk-weighted

38,797 assets
35,55032,944

55.5

YoY[+3,246]

32,6142020/32021/32022/3

Expenses
Gross corebusiness profit

× 100

Core OHR excluding
dividends from equity
method affiliates(special factor)

2023/3

3. ROE (Tokyo Kiraboshi FG consolidated) (%)
2,852

2,852

2,990

3,163

CapitalYoY

5.7[+173]
2.6
1.3

2020/32021/32022/32023/32020/32021/3

6.5

5.4
3.7
2022/3

ROE excluding equity method
investment profit (special factor)
that was recorded in FG books

2023/3©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

16

Fiscal Year Ending March 31, 2024 Plan
Kiraboshi Bankʼs net income (excluding special factors) is projected to remain generally flat in view of such factors as
proactive investment in DX and other initiatives, and conservative estimate of credit costs, although interest on loans anddiscounts is expected to increase significantly.
Tokyo Kiraboshi FGʼs profit (excluding special factors) is expected to increase by ¥2.9 billion YoY.
(¥100 million)

Kiraboshi Bank (nonconsolidated) plan

Kiraboshi Bank (nonconsolidated) plan

2024/3 full-year
earnings plan
2023/3(Actual)2024/3(Planned)

YoY(¥100 million)
Results
excludingspecial factors<Ref> 2024/3 full-year earnings
plan excluding special factors

2023/3(Actual)2024/3(Planned)

Specialfactors thatare excluded

YoY

1

Gross core business profit

907

885

(22)

1

Gross core business profit

803

850

35

+46

2

Net interest income

744

756

+12

2

Net interest income

679

721

35

+41

3

Interest on loans anddiscounts

572

643

127

127

(21)

(49)

124

128

Interest on loans anddiscounts

572

4Interest on securities

192

162

(29)

5

Other interest income

(21)

(49)

(28)

163

128

(34)

6

Non-interest income

643

+70

7

Expenses

(504)

(530)

(26)

8

Net core business income

403

354

(48)

9

Credit-related costs

(20)

(50)

(29)

10

Gains (losses) on bonds

(50)

8

+58

11
12

Gains (losses) on stocks
and other securities
Other non-recurring profit(loss)

13 Ordinary profit
14

Extraordinary profit (loss)

15

Income taxes

16 Net income

48

8

(40)

(15)

(22)

(7)

365

297

(67)

15

(1)

(17)

(107)

(50)

+56

274

245

(29)

Tokyo Kiraboshi FG (consolidated) plan(¥100 million)

Plan excluding special factors

34Interest on securities

5

Other interest income

6

Non-interest income(Actual)1

Ordinary profit

2

Profit attributable toowners of parent

307
211

2024/3(Planned)

⑤－①
YoY

281

(26)

220

+8

―
*1

+70

35
―

Expenses

(504)

(530)

8

Net core business income

299

319

9

Credit-related costs

(20)

(50)

―

(29)

10

Gains (losses) on bonds

(11)

8

―

+19

Gains (losses) on stocks andother securities
Other non-recurring profit(loss)

48

8

―

(40)

(15)

(22)

―

(7)

13 Ordinary profit

300

262

14

Extraordinary profit (loss)

15

(1)

―

(17)

15

Income taxes

(107)

(50)

―

+56

209

210

11
12

16 Net income2* For signs used in year-on-year comparison, “+” indicates increase in income, “( )” indicates decrease in income

35

35

35

+0

<Ref> 2024/3 full year earnings
plan excluding special factors

2023/3(Actual)2024/3(Planned)

Ordinary profit

272

266

Profit attributable

175

205

to owners of parent(38)(¥100 million)

Tokyo Kiraboshi FG(consolidated) plan1―(0) *1:Kiraboshi Bank to receive,
as dividend, ¥3.5 billion of(28)
equity method investment
profit (profit from sale of+4
real estate by a subsidiaryof an equity method(26)
affiliate) posted in Tokyo
Kiraboshi FGʼs books in+20
FY2023/3

72024/3 full-year earnings plan

2023/3*1

Specialfactors thatare excluded

*2

15
15

YoY
(５) *2:To be posted as equity
method investment profit(¥1.5 billion)+29©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

17

Factors Affecting Net Income (Planned) Excluding Special Factors(Kiraboshi Bank)
Main Items

YoY

Key Points＋¥7.0 billion+¥7.0 billion YoY anticipated in interest on loans, on the back of increase in loans resulting
from promotion of transactions for main bank relationship building, business financing
activities, and other initiatives, as well as rising yields, leading to improved profitability ofmain line business.

❷ Other interest income¥(2.8) billion¥(2.8) billion YoY projected as a result notably of an increase in foreign currency funding
costs due in part to impacts of macro environment and interest payment to UI Bank onborrowed money.

❸¥(2.6) billion¥(2.6) billion YoY projected as a result largely of human capital investment and continued
proactive investment in DX initiatives aimed at improving management efficiency andsophistication.

❶ Interest on loans

Expenses❹ Credit-related costs¥(2.9) billion¥(2.9) billion YoY based on conservative estimate in the full-year plan, although allowance
ratio is on the decline given decrease in the default rate and other factors.

❺

Gains (losses) on
bonds, stocks, andother securities¥(2.0) billion¥(2.0) billion YoY based on conservative estimate of gain on sale of stocks held forinvestment purposes.

❻

Extraordinary income(loss) / Income taxes
Year-on-year changes

Net income

Interest on
securities
Interest on
loans

❶

＋¥3.1 billion+¥3.1 billion YoY as a result notably of reduction in income taxes due to tax effectaccounting (+¥5.6 billion), despite absence of gain on return of retirement benefit trust(¥1.5 billion) recorded in the previous fiscal year.
Proactive investment(¥100 million)

Net income
Non-interest
Other interest income
income❷Creditrelated
costs

❹

Extraordinary
income (loss) /Income taxes
Gains (losses)
on bonds,
stocks, andother securities❻❺
2023/32023/32024/3(Planned)

Total

Equity method investment profit(special factor)

64

35

15

115

Proactive investment in DX
promotion and other initiatives

35

37

42

114

Diff. b/w consolidated and non-consolidated

Expenses❸

2022/32024/3

Kiraboshi Bank (non-consolidated) net income

210Groupʼs consolidated net income [of which, effects of start-up deficitof newly established companies, etc.: ¥(2.4) billion]+0

Elimination of internal transactions between consolidated Group
companies
Amortization of bonds held, etc.

(５)Tokyo Kiraboshi FG (consolidated) net income

205(Note) For signs before the numbers, “+” indicates increase in income, “( )” indicatesdecrease in income©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

18

<Reference> UI Bank Results
Progress made in reaching out to the younger generation, with which Kiraboshi Bankʼs transactional
relationship has been weak. Acquired users from all over Japan, centering on the Kanto region.
Results of the fiscal year ended March 31, 2023

Deposit balance ¥335.8 billion
Balance2022/32023/3

YoY¥136.2 billion ¥335.8 billion+146.5％

Breakdown of deposit balance

2023/3

Achievement rate

93.5％

* Plan: ¥359.1 billion

Ordinarysavings¥23.8 billion¥311.9 billionTermdeposits

Kiraboshi Bank
customers
41.4%¥335.8billionTermdeposits
92.8％

2022/32023/323,000accounts

73,000accounts

Achievement rate

42.9%

* Plan: 172,000
accounts(133,000 accounts)

Distribution of accounts by age group
80 and80歳以上
above 19歳以下
19 and below:
0.6%
0.8%
20歳代
20s:
9.9%
70s:
70歳代

Ordinarysavings
7.1%

Number of ordinary savings accounts(number of customers)

Ordinary savings account / Term
deposit account breakdown

4.9%

Distribution of accounts by region
Chugoku&中国・四国Shikoku
3.1%

Kyushu &Hokkaido &Okinawa
九州・沖縄

北海道・東北Tohoku

4.0%

4.0%

関⻄
Kansai
60歳代
60s:

9.2%

17.9%

New
customers
58.5%

73,793
accounts
50歳代
50s:
26.9％

30歳代
30s:

17.2%

Tokyo

Hokuriku &北陸・甲信越Koshinetsu

73,793
accounts

3.0％

40歳代
40s:

21.3%

東海
Tokai

関東
Kanto

5.4%

15.8%

37.1%

神奈川県
Kanagawa
17.6%©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

19

Progress on the Medium-TermBusiness Plan

©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

20

Overview of the Tokyo Kiraboshi Financial Group(as of March 31, 2023)①②

Location ofhead office

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

Capital¥27.5 billion

Consolidated
total assets¥6,742.1 billion(as of March 31, 2023)(Group companies)

Location ofhead office

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

Capital¥43.7 billion

Total assets¥6,688.4 billion

Company nameBusiness
description③

Kiraboshi Credit Guarantee Co., Ltd.

Guarantee operations④

Yachiyo Credit Guarantee Co., Ltd.

Guarantee operations⑤

Kiraboshi Business Service Co., Ltd.

Centralizedadministrative services⑥

Kiraboshi Business Consulting Shanghai Co., Ltd. Consulting⑦

KIRABOSHI BUSINESSCONSULTING VIETNAM CO., Ltd

Consulting⑧

Kiraboshi Servicer, Ltd.

Claim management
and collection business(Equity-method affiliate)⑲

Kiraboshi Insurance Agency CO., LTD.

⑳

StarBridge business consulting (Beijing)Co., Ltd.

Insurance agency
business
Consulting(Group companies)
Company nameBusiness description⑨

UI Bank Co., Ltd.

Banking business⑩

Tokyo Kiraboshi Lease, Inc.

General leasing business⑪

Kiraboshi System, Inc.

System processing
outsourcing⑫

Kiraboshi Consulting Co., Ltd.

Consulting⑬

Kiraboshi JCB Co., Ltd.

Credit card business⑭

Kiraboshi Tech, Inc.

Fintech services⑮

Kiraboshi Capital Co., Ltd.

Structuring andadministration of funds⑯

Kiraboshi Life Design Securities Co., Ltd.

Securities business⑰

Kiraboshi business office service, Inc.

Payroll operations, etc.

⑱

Be.Brave, Inc.

Advertising planning andproduction business(Equity-method affiliate)㉑

Sky Ocean Asset Management Co., Ltd.

Commissioned
investment trust services©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

21

Management Base of Kiraboshi Group
Accelerate the promotion of transactions for main bank relationship building and business financing
activities against the backdrop of a rich market

Japan

Kiraboshi Bank Branch NetworkTokyo

SaitamaPopulation(estimate)

124.86 million(as of December 1,
2022)

14.04 million(as of December 1,
2022)(Proportion:

approx. 11%)

Chiba
Tokyo

Gross domestic product(nominal)
Tokyo gross municipal
product (nominal)

Number ofcompanies(Companies + individuals)

Number of offices(Private business offices)¥550.5 trillion¥109.6 trillion

3,390 thousand

422 thousand(2021)(2021)(FY2021)companies

5,078 thousand
offices(2021)

Balance of bankloans
(Japanese banks)

Balance of bankdeposits(Japanese banks)¥570.3 trillion(As of March 31, 2023)¥957.1 trillion(As of March 31, 2023)(FY2020)(Proportion:

Branchnetwork

approx. 19%)

Tokyo
124
Kanagawa 38
Saitama
3
Chiba
1
Total
166

(Proportion:companies

approx. 12%)616 thousand(Proportion:

offices

approx. 12%)

¥246.9 trillion(Proportion:

Kanagawa

166 branches,
114 offices(2021)(As of March 31, 2023)

approx. 43%)

¥350.0 trillion(Proportion: approx.
36%)(As of March 31, 2023)(Remarks)
Ministry of Internal Affairs and Communications population estimates, Tokyo Metropolitan Government
population (estimates) of Tokyo, Cabinet Office Annual Report on National Accounts for 2021, Tokyo
Metropolitan Government Tokyo Statistical Yearbook (fiscal 2020), Ministry of Internal Affairs andCommunications 2021 Economic Census for Business Activity Preliminary Tabulation, Bank of Japan Statistics:
Deposits and Loans Market

Number of Kiraboshi Bank customers withmain bank transaction relationship
Number ofcompanies(denominator)

Number ofcustomers withmain bankrelationship

Share

Tokyo

231,678

7,075

3.05%

Kanagawa

78,938

2,832

3.58％

Total

310,616

9,907

3.18%

(Reference)

Prepared based on a 2022 survey by TOKYO SHOKO RESEARCH, LTD.
(The number of companies is based on the TOKYO SHOKO RESEARCH, LTD. database)©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

22

Financial Targets under the Medium-Term Business Plan (KGIs)
Profit items such as ROE, profit/net income, profit from customer business are increasing steadily, leading to steady improvement in
profitability
Issues are contribution of subsidiaries to consolidated income and capital ratio. Efforts will be made to achieve profitability of the digitalsubsidiary as soon as possible and to accumulate retained earnings.

2. Core OHR <Kiraboshi Bank
non-consolidated> (¥100 million, %)1. ROE <FG consolidated> (%)

5.7

6.5

MTBP

[5.9]

77.0

75.7

62.7

2021/32022/32023/32024/3(planned)

4. Profit from customer business <Kiraboshi
Bank non-consolidated> (¥100 million)

2021/32022/3412023/32024/3(planned)

5. Contribution of subsidiaries to consolidated
income <FG consolidated> (¥100 million)

2020/32021/32020/32021/3

Profit excluding equity
method investment profit(special factor)

2022/32023/32024/3(planned)

6. Capital ratio<FG consolidated> (%)

[23]

[234]
11
3

126

14

116

76

MTBP

216

[200]

175

55.5

2020/3

MTBP[57.3]

MTBP

9

181

MTBP

3.7
ROE excluding equity method
investment profit (special factor)

2020/3

211

67.9
65.3

1.3

(¥100 million)

OHR excluding extraordinary dividends
from subsidiary (special factor) anddividend from equity method affiliate(special factor)

5.4

2.6

3. Profit <FG consolidated>

8.6

8.7

2020/32021/3

1

8.4

MTBP

8.1

[8.3]

2023/32024/3(planned)(15)2022/32023/32024/3(planned)

2020/32021/32022/32023/32024/3(planned)

2022/3©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

23

Strategy of the Medium-Term Business Plan and Related Indicators (KPIs)
̶Initiatives to Address ESG/SDGs
Branch reorganization and improvement of operational efficiency to free up management resources and improve customer convenience, human resources development,
and self-fulfillment
Related indicators (FY2023
FY2022 actual
Strategy
SDG targets
Specific action items
targets)
Strategy (1)Status of
Progress

Transformation of all branches to next-generation
branch setup, self-service, and paperless operations

Retail-focused branches
34 offices

Retail-focused branches
55 offices〇

Strategy (2)Business process
re-engineering

Efficiency improvement in branch and headquarter
operations, maximization of customer contact points

Gross core business profit per head
¥32 million

Gross core business profit per head
¥35.8 million◎

Strategy (3)Human resources
development

New personnel system, strengthening ofspecialization, reform of organizational culture

Make use of external talents

Mid-career hires: 80(Cumulative total from FY2021)ー

Branch strategy

Personnel allocation and enhancement of financial and competitive strengths for providing high-value-added services and contributing to the sustainable growth of society
Strategy (4)Resource allocation

DX

Fusion of “face-to-face and non-face-to-face,”“financial and non-financial”
Digital Bank, LaLaPay, IT support for older customers

KGIs (Please refer to p4)

KGIs (Please refer to p4)

ーCentralization of routine office work and alliancemarketing, optimal allocation of personnel

Number of Internet users
400,000 users

Number of Internet users
240,000 users△

Provision of high-value-added services by enhancing financial strength and with invested management resources, contribution to the sustainable growth of society
Strategy (5)Services for the businessowner segment and older
adult segment

Life plan support, transactions with business owners
Inheritance, property management

Strategy (6)Promote main bankrelationship building

Business succession, M&As, business financing,overseas expansion, start-up support, Groupfunctions

Strategy (7)Medical institutions

Enhancement ofcorporate
governanceSupport for medical institutions by specialized teams
Medical platform in cooperation with business partners

Establishment of GSuO (Group Chief Sustainability
Officer) position
Revision of credit policy, establishment of investment
and loans policy* Annual sales of ¥300
million or more

Assets under management ofbusiness owner customers
1,000 customers, ¥50.0 billion
increase

Number of customers increased
by 2,838
Outstanding balance increasedby ¥41.7 billion◎〇

Financing to customers with main bankrelationship*+600 customers, increased by ¥600.0
billionKiraboshi Package: 60,000 customers
Business succession support: over 1,000
customers
Support to medical institutions: over 400
institutions

Number of customers increased by 2,130

◎
◎
〇
〇
◎

Loan amount increased by ¥734.3 billion
Kiraboshi Package: 44,000 customers
Business succession support: 692
customers
Support to medical institutions: 412
institutions

Achievement level of each indicator◎...Surpassed; 〇... Achieved or nearly achieved;△...More work needed©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

24

Corporate Customer Strategy ① (Loans)
Increase in loan balance largely through efforts in promoting transactions for main bank relationship building
and business financing activities, rise in loan yields, and growth of interest on loans and discounts
1. Average loan balance and yield (¥100 million, %)2. Interest on loans and discounts (¥100 million)
Growth trend with increase in loan

1.26
1.19
1.17

1.18
1.17

1.21
1.25
Closing balance Revised Plan
[48,373]
47,353

1.19

Averagebalance45,156

41,167

Revised Plan

balance and rising yields[643 ]

Significant revision to the FY2024/3
forecast
441

463

2020/32021/3

498

553
Planned
[553]

MTBP
[562]

2023/32024/3

MTBP[44,344]

39,08236,9632020/32021/32022/32023/3(Average balance) (Average balance) (Average balance)

2024/3(Average balance)[Planned]

Of which, balance of business financing
1.52

1.77

2.19

2.74

MTBP

1.91
MTBP

5,168
2,821
697

1,211

60

41

2,761

10
687

1,170

2020/32021/32022/3[5,318 ]2022/3[Planned]

Of which, interest on loans and discounts
related to business financing

Business financing contributing to

MTBP

increase in interest on loans anddiscounts

1,008 Mezzanine

MTBP
[89]
MTBP
[62]

40

4,158 Senior

2023/3992024/3[Planned]

10
2020/3122021/32022/32023/32024/3[Planned]©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

25

Corporate Customer Strategy ② (Commission Income from Corporate Customers)
Fees and commissions in corporate customer business drove overall fee and commission income, led primarily
by fee income associated with cross-selling arising from transactions in main bank relationship building andbusiness financing
2. Commission income from corporate customers

1. Income from fees and commissions(¥100 million)(Kiraboshi Bank) (¥100 million)

77

Commission income from corporate
customers exceeded the initial plan and* April – July 2020
Investment trust sales commission
cash back campaign* August 2020
Kiraboshi Life Design Securities
starts operationa major revision was made to the 2024/3
forecast
58
127
Others

115

111

29

<22%>

41

88

33

2020/32021/3

Others<30％>

Corporate

34
77
58

<60％>

<50％>

33

Individuals<37％>

2020/32023/3

33
20

21

21

<22％>

<18％>

<16%>

2021/32022/32023/3* Figures in < > indicate composition ratio

Individuals

MTBP
[29]

16

2024/3[Planned]

61

Fee income associated with businessfinancing, etc. contributing to the growthof commission income

36
<32％>

2022/3of which, commission income from corporate customers(main bank relationship building, business financing)

<38％>

<28％>

32

35

<36％>

32

MTBP
[55]

MTBP
[56]

MTBP
[29]

10
2020/32021/32022/32023/32024/3[Planned]©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

26

Corporate Customer Strategy ③ (Private equity investment / Kiraboshi Capital)
Support for SMEs to enhance their corporate value, through investment in private equity funds
and Kiraboshi Capital
1. Status of investment in private equity funds(¥100 million)

2. Status of Kiraboshi Capitalʼs fund administration(¥100 million)

422

928
776

Arranged

Committed capital

331

657
251
382

429

527
Balance ofcommitted
capital(Book
value)

425
209

240

2019/32020/3

273

196
136
30

Invested

36
35

2021/3

Breakdown of funds invested

2022/32023/3

Number of Capital commitment
Balancefunds

2019/3Name

2020/32021/32022/3

Description

2023/3

Total fundamountLaunchedin● Venture funds

6¥1.1 billion

Yume Kagayaki Fund 1

Buyout investment¥2.6 billion

November
2018● Reconstruction and debt funds

6¥2.9 billion

Yume Habataki Fund 1

Growth capital investment¥2.0 billion

March 201958

¥37.7 billion

Yume Yorisoi Fund 1

Mezzanine finance¥12.5 billion

Tokyo Sparkle

Engagement investing¥10.0 billion

5¥1.8 billion

August2020
November
2020

A&KC Medical No. 1

Medical fund¥3.0 billion

March 2021

25

¥49.1 billion

KCP Equity Assist No. 1 Equity investment (minority)¥8.0 billion

June 2021

Yume Habataki Fund 2¥4.0 billion

February
2023● Buyout funds● Others (real estate, infrastructure, etc.)● Others (funds of Kiraboshi Capital,

policy-based investments, etc.)

Total

100

Total

¥92.8 billion

Growth capital investment

Total¥42.2 billion©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

27

Corporate Customer Strategy ④ (Trust Business, Medical, Collaboration with Other Banks)
Increase in trust asset balance centering on real estate management trusts, expanded support for medical institutions by
Medical and Welfare Business Division
Cumulative business impact of collaboration with Bank of Yokohama reached ¥6.6 billion in the second year, with an early
achievement of the ¥10 billion target in sight
4. Balance of loans to medical institutions aimed atbuilding main bank relationship (¥100 million) / Yield (%)

1. Trust asset balance (¥100 million)
1,134

Real estate management trust
driving growth of balance against
the backdrop of the real estatemarket in the Tokyo metropolitan
area

270
201

414

294

170

2020/32021/3

2. Trust assets ofregional banks (¥100 million)
Largest balanceamong regional
banks

822

Public works
cost
receivables
trust, etc.

912

994

1.57

283
897
539

Real estate
management
trust

Medical and Welfare Business Division
Total loan balance approx. ¥144.0 billion

2022/32023/32020/32023/32024/3×

The Bank of Yokohama, Ltd.

LBOs and other collaboration in the structured finance field, etc.

A key revenue source withsolid growth328
156Bank C Kiraboshi

2022/3

Tokyo Kanagawa Solution Connect

Cumulative impact of collaboration(income)¥6.6 billion in cumulative total

150

2020/3 2021/3 2022/3 2023/3

Targets¥10.0 billion
over 5 years

66
23
FY2021

Bank B[268]

405

2021/3

3. Trust fees (￥million)* figures are as of
September 30, 2022

Bank A

677
MTBP

95

30

[1.39]

5. Business collaboration with Bank of Yokohama

395

129

1.28

Planned[Planned](Source: Trust Companies
Association of Japan)

304

1.31

(of which, ¥67.7 billion in balance of loans
aimed at building main bank relationship)

244

151

68

2019/3

445

237

1.57

FY2022

FY2023

FY2024FY2025+ sharing of back office work
Cost reductions of ¥16 million per year

Partial introduction of joint delivery of cash, documents, etc.
(between sales offices in the West Tokyo area)©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

28

Retail Customer Strategy
Established Wealth Management Office and started offering comprehensive support through long-term transactions targeting
corporate owners and affluent individuals
Aim to enhance profitability of the Retail Division through unified sales activities of Group companies including securities andconsulting subsidiaries

1. Fees and commissions from financial instruments(Kiraboshi Bank non-consolidated) (¥100 million)

36
0

9

27

10
2020/3

1

0

1

5

8

13

11

Investment
trusts22

32021/32022/31092023/3

Of which, investment
trust sales commission¥1.0 billion

4,005

Kiraboshi
Bank

1,079

1,731

2,028

KLD
Securities

2021/32022/32023/3● Wealth Management Office● Established in April 2023
● 8 employees● Long-term account management incharge of the very high net worth
individual segment
Providing pertinent and tailoredadvice on asset management
inquiries in collaboration with sales
offices as well as experts within andoutside the Kiraboshi Group

811
200

Kiraboshi Bank
Effective
use of realestateCustomer
Providingcomprehensive support
in a long-term time
frame

Funding

Investment
trusts561

659

Fund wraps

2022/32023/3

4. Group organization chart (retail sales)

Asset
succession
Assetmanagement

1,165

1,023

68

2021/3

WM Office (Kiraboshi Bank)

Others(MRF, publicbonds, etc.)

146

1,079
Opened inAugust 2020

2,028
202

1,731

2024/3* Breakdown is based
accounting figures¥0.8 billion

4,124

3. Breakdown of KLD Securitiesʼ balance ofassets under management (¥100 million)[Planned] on management(Ref)¥0.2 billion
KLD Securities income

6,033

4,186

2020/3Life
insurance

5,856

5,266

4,626

21 Others 22

21(¥100 million)

4,626* April – July 2020
Investment trust sales commission cash back campaign* August 2020
Opening of Kiraboshi Life Design Securities (KLD Securities)

20

2. Groupʼs balance of assets under management

Headquarters
Sales
offices

PB
Promotion
Division

WM
OfficeGroup companies

External expert
organizations

Kiraboshi Consulting
Co., Ltd.

Lawyers

KLD Securities

UI BankBusiness
succession＋Taxaccountants
Real estatecompanies

Customer©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

29

Expenses
While controlling costs by cutting down personnel costs, branch expenses, and other costs throughheadcount reduction, push forward with efforts to improve management efficiency with proactive
investment in such areas as DX

Non-personnel expenses

1. Breakdown of expenses (¥100 million)
522

524

44

44

217

514

504

44

229

Taxes 42
Nonpersonnel
expenses

237

238

[530]
Taxes 46
Nonpersonnel
expenses254●Total non-personnel expenses in FY2023 are expected toincrease as a result of proactive investment such as in
the development of IT infrastructure that contributes toimprovement of management efficiency, and in DX
initiatives
Proactive investment (¥100 million)• IT infrastructure investment• Investment in DX initiatives• One-time costs related to BIB, etc.

261

250

Personnel
expenses

232

223

Personnel
expenses

35

37

2022/32023/3

28

229

[42]

17

2020/32021/32022/32023/32024/3[Planned]

Personnel expenses● Personnel expenses on a downtrend due to decrease in headcount2020/32021/3● In non-personnel expense items, branch office rent has
been on the downtrend as a result of BIB (branch-inbranch) and other initiatives
Number of staffed offices

Headcount(persons)

2,888

2,767

2,656

2,526

2020/32021/32022/32023/3● However, personnel
expenses are expected to increase in FY2023
Personn
due to proactive humancapital investment including base-pay
elexpenseincrease (by 2.5%)s and starting salary raise (by 50,000 yen)2024/3[Planned]

Offices for corporate andretail customers
Retail-focused branches
Offices specializing in
corporate customers
Sub-total (1)Staffed sub-branches andoffices (2)Total of (1) + (2)2024/32020/3 2021/3 2022/3 2023/3 projection

104

89

46

46

49

14

20

56

55

48

3

2

4

3

2

121

111

106

104

99

13

12

10

9

4

134

123

116

113

103

©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

30

Capital Policy
Ensure a “sound capital ratio” and implement a well-balanced approach in “use of capital to strengthen profitability” and “return ofprofits to shareholders”
In addition, start considering repayment of preferred shares in the next Medium-Term Business Plan and beyond (details to bedisclosed in the next Medium-Term Business Plan).

■ Basic Policy
Use of capital to strengthen profitability(improvement of capital efficiency)

Sound capital ratio
Internal Accumulation ofreserves internal reserves

Return of profits
to shareholders
Enhancement

Performance of financial intermediary functions
Financial
as a regional financial institution throughintermediary
appropriate risk-taking, being mindful of RORA＋
Asset portfolio evolution throughappropriate capital allocation andrisk-weighted asset control

Growthinvestments

Growth investments for the future

Shareholder of shareholder
returns

returns① Equity investments and strategic investments in Group companies② Management efficiency improvement through DX investment andother measures

Total payout ratio 20–30%
FY2020¥60

FY2022¥115■ Capital allocation
Medium-Term Business Plan 1st to 2nd year

+1.28%

Medium-Term Business Plan 3rd year <planned>(1.16%)(0.52%)

8.74%

2021/3FG
consolidated
profitAccumulationof internal
reserves

Increase inriskweighted
assets, etc.

Financial intermediaryfunctions(contribution to local
communities)+0.63%(0.53%)(0.19%)
Group
strategies /DX
investments

Dividends

GrowthShareholder
investments
returns(0.11%)

8.15%

2023/3FG
consolidated
profitIncrease inriskweighted
assets, etc.

Accumulationof internal
reserves

Financial intermediaryfunctions(contribution to local
communities)Group
strategies /DX
investments(0.12%)
Dividends

in the 8%range

GrowthShareholder
investments
returns

2024/3©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

31

Shareholder returns (dividends)
Paid out annual dividend 1.9 times higher than the previous Medium-Term Business Plan given
steady accumulation of profits. ¥15 increase in dividend planned for FY2023
2020/32021/32022/3

Dividend per share

Current Medium-Term Business Plan

Previous MediumTerm Business Plan

Continuous and stable dividendof ¥60Year-end
Interim

¥60

¥60

30
30

30
30

Total shareholder
return ratio

2024/3 (forecast)

2023/3

47%

25%

Compared toprevious MTBP

Actual

1.9 times
¥75
45

¥115
¥40 dividend

increase annually

62.5

30

52.5

20%
（*）

20%
（*）

Dividend
forecast

Forecast of ¥15
dividend increase
compared to2023/3¥130
65
65

Approx. 20%（*）* Based on profit
excludingspecial factors

Net income¥22.0 billion

Net income¥21.1 Bn
¥18.1 Bn

Special factors¥3.5 billion

Excludingspecial factors¥17.5 billion

Net income¥7.6 Bn

Total dividends¥3.5 billion

Total
dividends¥4.1 Bn¥1.8 Bn¥1.8 Bn¥2.2 Bn

2020/32021/32022/32023/3Special factors (see p7) areinvestments in areas that
contribute to improving
management efficiency, suchas DX promotion
IT / DX-related ︓¥1.8 billion
Branch-related ︓¥0.3 billion
Others︓¥１.5 billion
Total 3.7 billion

Special factors

Excluding Special factors
special factors ¥1.5 billion¥20.5 billion (See p17)
Total
dividends¥3.9 billion
2024/3 (forecast)©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

32

The Kiraboshi Groupʼs Actions for
the Future©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

33

Digital Strategy of Kiraboshi Group Using digital channels and real channels that leverage the strengths of regionalbank, provide value by blending face-to-face with non-face-to-face, and financial[Fusion of financial andwith non-financial services
Non-faceto-faceDigitalbusiness
Enhancement ofdigital channels

Growth of business through expansionof digital contacts• UI Bank(app-based bank)• Maekyu, LaLaPay
services* Jan. 2022 –* Nov. 2021 –Digital 01

Digital 02

Acceleration of digital shift

Real channels

Keeping contacts
with customers

Improvement ofbranch operation
efficiency throughdigitalization• Rollout of nextgeneration branches

Digital 05

Face-to-facesales

Face-toface

Change to a sales
structure thatmakes good useof data*To be implemented
gradually by Dec. 2023

Efficiency
improvement inbranch operations<Paperless><Cashless><Operation-less>non-financial services]〈Toward growth of digital retailbusiness>

Business
Alliance withShinhanBank
Digital 03

Businessalliance with
Mitsubishi
Corporation
Digital 04

Full-scale launch of digitalbased, Tokyo-based platform
concept
Digital 06

Transfer branch personnel to sales
personnel (shift to front office)Greater efficiency
of sales activities• Strengthen
consulting services

Use of data ->sales activities• Full-scale launch of
the CRM system* Apr. 2023 –©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

34

UI Bank: digital bank

Digital 01● Since establishment of UI Bank, achieved Group-wide collaboration and cooperation
with external organizations in tandem with expansion of financial functions
This direction will be expanded and accelerated going forward, toward a two-way
growth using internal and external assets
2022/032023/03
Deposit balance: ¥136.2 billion Deposit balance: ¥335.8 billion

At the time of opening(Jan. 2022)[External][Internal]

Established Digital Bank withminimal functions

At present(Mar. 2023)

FY2023 –Set out on “Group collaboration,”“external service collaboration”
and “BaaS provision”

Open bankaccount

Deposit andwithdrawal

Moneytransfer

Accountbalance /statements

Expand and accelerate each
initiative

Direct debit
Linkage with
LaLaPay

Collaboration withKLD Securities

Credit card loan

BaaS (GIG-A)
Collaboration withexternal services

Business development being pursued

Foreign currency
deposits

Loans ondeeds

Expansion of BaaS users

Expansion of collaboration
with external services

Toward establishmentof a growth model
armed with the“power to connect”
Growth throughcollaboration withGroup companies

Growth leveraging
external collaboration

Create income opportunity throughexpansion of functions and collaboration■ Growth utilizing Kiraboshi Groupʼs management resources (Group retail strategy)■ Growth utilizing external assets such as partnership and alliance with other companies and banks (BaaS business strategy, etc.)→Seamless provision of financial and non-financial services (improved convenience)©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

35

Kiraboshi Tech Inc.: Maekyu/LaLaPay

Digital 02●With “Maekyu,” number of workers who have registered attendance is growing substantially. Continue to work on
expanding user base, focusing on workplace activities.
●Use of digital wallet “LaLa Pay” in e-commerce payment made possible by loading virtual prepaid card. Aim for
greater user convenience such as by introducing tap to pay and other functionalities to expand stores that accept
LaLaPay payment.
●Organically link to financial functions of UI Bank to provide customer experience that integrates financial and nonfinancial services■Digital financial functions arounddigital wallet■Increased convenience of digital wallet
Virtual prepaid
cards

Digital wallet<Top-up fromMaekyu><Electronic
money
functions>Top-up frombank account

Smartphone-based
self-contained
financial services

E-commerce
payment is possible
Tap to pay (planned)
Expansion of otherwallet functions■Increase in Maekyu users: Changes in thenumber of attendance registrants

468,000

483,000

534,000

FY2021

FY2021

FY2022600,000

Expanded
opportunities forfee business Payment andmoney transfer
 Finance Corporate
services

FY2023 (planned)■Expansion of benefit services

Business development being pursued■ Expand Maekyu and LaLaPay platforms, and aim for top market share in the salary prepayment market■ Move into matching business for part-time workers in order to address current labor shortage■ Provide new finance schemes utilizing attendance data and performance appraisal data
©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

36

Business Collaboration with Shinhan Bank

Digital 03● Shinhan Bank is a South Korean megabank that has been expanding its retail business based on digitaltechnology.
● Since establishment of business alliance between Shinhan Bank Japan, its subsidiary, and Kiraboshi Bank (July
2019), the two groups have been building a good relationship through various collaboration including introductionof UI Bankʼs core banking system.
● A memorandum of understanding on business alliance was concluded with the aim of strengthening strategic
partnership and expanding financial ICT operation in Japan
Conclusion of a memorandum of understanding
on business alliance

Description

May 3, 2023
Signing in Incheon, South Korea

Areas ofcooperation

 Development of retail, digital and ICT
business strategies
 Mutual cooperation in financial ICT business Identification and materialization ofcooperation projects through composition of
the Steering Committee

Business development being pursued
 Develop a growth strategy for the retail business in Japan in collaboration with Shinhan Bank, which is a“model of success in the retail field.” Plan to conduct discussions on a wide range of fields, including “sharing of know-how in marketing andother digital retail strategies,” “mobile application development,” “use of CRM (customer relationshipmanagement system) data,” and “startup support collaboration.”©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

37

Business Alliance with Mitsubishi Corporation ①

Digital 04

Mitsubishi Corporation“Tokyo-based Platformer”“Utilizing Integrated EX/DX Initiatives toPromote Regional Revitalization”

Value Proposition / Role

Value Proposition / Role

• Flexible, highly functional digital financial
infrastructure• Various financial products and services• Experience and expertise in digital banking• Strong network with industry and local
government• Wide exposure to various industries• Diverse talent with DX capabilities

FinTechPartner

Kiraboshi Tech, Inc.

DX
Partner……

Scope of Cooperation¥

Deposit

Remittance

Finance
Functions

Investment

Embedded Finance ＋ Business ModelDX Consulting
Support for overseas expansion, etc.

Settlement

Loan

Community
Business operators well-establishedin the community
Infrastructure

Healthcare

RetailMunicipality

Local business Own service
Regional financial
institutions

Provide a better customer＋
experience by integrating nonFinancial financial and financial services
services*include Kiraboshi Group customers©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

38

Business Alliance with Mitsubishi Corporation ②

Digital 04

 Subsequent to signing of business alliance, work together to develop and promote a growthstrategy, roll out an ecosystem throughout Japan that provides convenience to consumers
Outline of the Business Alliance Agreement
Objectives

 Tokyo Kiraboshi Financial Group and Mitsubishi Corporation to jointly engage indiscussions aimed at further growth of digital banking business and other businesses
utilizing their respective business assets, as well as personnel dispatch and customer
referral.

Targetbusinesses

 Digital banking business in general, DX consulting business, support for overseas
business expansion, etc.

1. Expansion of UI Bank and Kiraboshi Tech businesses• Develop solutions through use of Mitsubishi Corporationʼs management resources (personnel dispatch from Mitsubishi
Corporation, DX capabilities).
• Realize prompt and flexible response to usersʼ needs and strengthen cost competitiveness through in-house development.
• Improve UI Bankʼs UI/UX, provide diverse service menu by organically integrating the functions of UI Bank and Kiraboshi Tech.

2. Establishment of Tokyo-based Digital Platform• Tokyo Kiraboshi Financial Group to provide solutions to cross-industry customer contact points in retail, infrastructure, andnon-financial areas through collaboration with Mitsubishi Corporation Group, and promote the Tokyo-based platformer
concept. Develop and expand the services across Japan through cooperation also with regional financial institutions.
• Through establishment of digital platform, contribute to creating new values and solving social issues of communities andindustries.

Speedy profitability improvement of UI Bank and Kiraboshi Tech
(improve subsidiariesʼ contribution to consolidated profits)

Building a sustainable business model (differentiation by means of comprehensive improvement of user convenienceand cost competitiveness, solution to social issues)©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

39

Kiraboshi Bank: Next-Generation Office / CRM System
Next-generation
branches

Real channel:
branches

Expand in-store tablet operations➡Improve branch operation efficiency while
maintaining contact points with customers
 Benefits of branch operation efficiency
improvement

・ Convert extra space to sales space・ Streamline administrative personnel and strengthen
sales personnel<Reduce customersʼburden to fill out forms>
Fill out paper forms -> Input datausing in-store tablets

Data entry<Strengthen in-store
consulting operations>
Inheritance consultation using remoteconsultation system
From consultation
at branches toremote consulting<Operation-less for bank
employees>

CRM system

Digital 05

Face-to-face sales

Strengthen sales capabilities using CRM system➡Improve success rate of businessnegotiations with appropriate customer
management■ Benefits of CRM system introduction in all sales
offices・ Accumulate and analyze sales data throughemployees
・ Shift to a sales approach based on data analysis

Sales PDCA based on CRM

Centralization of functions to headquarters etc.
leading to elimination of voucher processing

API

Terminals

Proposals

Self-withdrawal

4

1
CRM

Data
accumulation<Lobby area to be used asconsultation space>3

Administrative space reduction ->Sales and procedures
Smart
Cash
StationPlan development

Transfer of personnel tofront office

Streamlining of branch administrative personnel➡ strengthening of sales personnel

2
Data analysis

Move away from sales dependent on
personal skills ➡ to data-based sales©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

40

Digital-based, Tokyo-based Platform Concept ①

Digital 06● In March 2023, UI Bank started offering BaaS type services (as the first regional bank group to offer
services for foreign residents in Japan using BaaS collaboration) to GIG-A Co., Ltd., a company thatdevelops and operates subscription-based multilingual mobile financial services● Aiming to realize the vision of Tokyo-based platform concept by providing financial and non-financial
services in collaboration with partner companies
Project A

Project B

HANEDA Platform

Overseas funds
transfer service
providersStart-ups

Project C

Medical platform

Platform for foreign
residents in Japan

Haneda Airport andsurrounding facilities

Large
corporations

Service providers
for foreigners

Administrative
organsLife support,
supermarket
and retail

Medicalinstitutions

Entertainment,
sports, leisure, art
Regional
vitalization

Project D –Future concept
Regional vitalization,entertainment and leisure©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

41

Digital-based, Tokyo-based Platform Concept ②

Digital 06

 Started providing BaaS of UI Bankʼs functions to GIG-A Co., Ltd, a multilingual mobile service provider
for foreign residents in Japan
 For medical institutions, started promotion of community hospital through investment in Mediva
Groupʼs Cʼs One, Inc. In addition, engaged in discussions on construction of a medical DX role modelin collaboration with core hospitals of local communities
Platforms / Key partner companies
Project A

HANEDA Platform

Haneda Future Research Institute
Incorporated
Conclusion of “Agreement oncomprehensive partnership”

Project B
Platform for foreign
residents in Japan

GIG-A Co., Ltd.
Provision of UI Bankʼs BaaS-typeservices

Project C

Medical platform

Investment in Cʼs One, a subsidiary of
Mediva, Inc.

Project D –In discussion with multiple nonfinancial companies on creation ofa digital-based platform

Future concept
Regional vitalization,entertainment, etc.

Future platform development• Roll out financial services at duty-free shops in Haneda
Airport• Promote open innovation from KicSpace HANEDA• Expand BaaS business with service providers targeting
foreign users• Provide services through BaaS providers Financial services: bank accounts, overseas remittances,loans, etc.
 Non-financial services: housing, medical, food, etc.
• Start promotion of “Community Hospital” in cooperation with
Mediva Group• Build a role model for medical DX in collaboration with core
hospitals of local communities• Collaborate with non-financial service providers ofentertainment, leisure, etc.
• Promote joint projects in embedded finance with companies
focused on daily life, such as supermarkets and infrastructure©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

42

Launch of the New Brand Project ①

Giving our all, for TOKYO.
The people of TOKYO are facing challenges like never before.
From lack of successors in small businesses to financial challenges facing young families.
We see the struggle and are rallying our support.
Thatʼs why we are launching the “Giving our all, for TOKYO” project,to spread this mission of the Kiraboshi Group, both internally and externally.

©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

43

Launch of the New Brand Project ②
Giving our all, for TOKYO.
We are committed to the challenges facing Tokyo and helping everyone shine.

Support for
older adults
Support forchild-rearing
generation

SMEs
Decarbonization
initiatives

SMEs
Business
succession andbusiness exit

Accelerationof digitalizationand ideal stateof localcommunities

Diversity andinclusion

Start-up
supportEnsuring
foreigners andolder adults
have access tofinancialservices

Support for
medicalinstitutions(management)

Financialservices
support for the
younger
generation

Socialinfrastructure
support

Focus on the various issues facing Tokyo and commit to solving them in a
distinctively Kiraboshi Group way.
Through such approach and achievements, communicate the “new form offinance” that Kiraboshi aspires.
©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

44

Sustainability (Well-being and Human Capital Management ①)
 “Kiraboshibito,” the most important capital asset of the Tokyo Kiraboshi Financial Group Kiraboshi Groupʼs employees, or “Kiraboshibito,” seek to realize the well-being of customers and local
communities; it is each employeeʼs happiness = well-being that increases corporate value.
Engage with and do the best for customers
and local communities
Provide services that are of value– Enhancement of corporate value –Human resources development,
improvement of internal environment

Contribution
to society

A cycle thatmaximizes the valueof human capitalOwn
happiness

Job satisfaction

Basic concept on human resources:
Each employee enhances own value andcontributes to improvement of corporate value

Growth oforganization

Sharing of Kiraboshi Philosophy
Happiness of each and every employee =realization of well-being

Platform for job satisfaction

Environment

Self fulfillment
Self-fulfillment

Growth of thecompany

Well-being of “Kiraboshibito”

Professionals who make exhaustive
efforts and take initiative inincreasing their market value

Inspiring eachother to improve

Diversity andrespect, support
for each other

Fair opportunities and a goodworking environment

Generating valuableaccomplishments

Kiraboshi Philosophy:
Contributing to society, seeking growth ofthe organization, achieving self-fulfillment
and realizing oneʼs own happiness

SchemeEmbody the Kiraboshi Philosophy

CultureRealization of customer and community
well-being
Sharing of gratitude, a sense ofcontribution, and happiness

Aspiration to do oneʼs best for customers
and the community
A desire to enhance one's own value

By reinvesting in human capital the improved corporate value that has been generated from the cycle,
realize sustainable development of employees / the Company / local communities = TOKYO©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

45

Sustainability (Well-being and Human Capital Management ②)
Human capital enrichment: each employee enhances own value and contributes to improvementof corporate value Human resources development

Upper row: FY2022 results (lower row: FY2023 targets set for major initiatives)

Strengthening of individuals
Mid-career
recruitment

Development of in-house talents“Dojo” training
participants
1,064 people(1,200 people)

Allocation to
strategic
divisions295 people

Fostering of corporate culture

Investment inhumanresources¥78 million

Organization
Enhancing eachembracing diversity
otherTraining in
Percentage ofcorporate
women in
Leadershipphilosophy
management
training
Participation by all
16.93%
21 people
regular employees(18%*)* Target of 20% by end of FY2025

Kiraboshibito

Number of midcareer hires
30 people(50 people)

Gratitude
Nice Work!
Card
10,314 cards

 Improvement of internal environment
Fair opportunities
Performance appraisal

Human rights

Appraisal feedback
interview implementation
rate
85%

Number ofsubmissions forhuman rights slogans
to enhance awareness
1,444Good working environment
Psychological safety and communication
One-on-one
employee job
satisfaction rate
92%

Participation in
360-degree survey
training
787 people

Wellness

Diverse work styles

Benefits

Regular healthcheckups
participation rate
100%

Employees taking
childcare leave
Female / male
100%
(100%)Disability
insurance
Participation of
all regular
employees

Aiming for human resources and organization dedicated to serving customers through “humanresource development” and “improvement of internal environment”
Management
personnel

Senior executive candidates■ Directorship system■ Dispatch to external training programs

Next generation leaders■ Next Leader Program■ Dispatch to external training programs

Develop management personnel who willcontribute to Kiraboshi's growth strategy

Professional
personnel

Professional training => hands-on
experience in specialized departments■ Finance: SF Dojo
■ Private bankers: PB Dojo
■ Consulting personnel: Consulting Dojo
■ Trust specialists: Trust dojo

Develop professionals who can provide
customers with high value

Digital personnel

Digital planning personnel■ Digital Dojo
⇒ Transfer to digital strategy division

Digital professionals■ Dispatch to external training
programs⇒ Dispatch to Kiraboshi System

Digital personnel
active group(digital-related
departments)
Digital personnel
standby group(Digital Strategy
Division)
Digital personnel
potential group(reserves)

Develop digital personnel who canplan and conceive solutions©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

46

Sustainability (Environment-Related)
1. Sustainability Policy

3. SDGs management support for customers

Tokyo Kiraboshi Financial Group strives to contribute to sustainable
development of local communities and increase medium- to long-term
corporate value through corporate activities based on its management
philosophy. The Group strives to enhance information disclosure throughdialogue with each and every stakeholder.
Each and every one of Group officers and employees works to increasecustomer value and plays an active role in addressing climate change andsocial issues.

2. Partnership with administrative organs &sustainable finance
The first regional financial institution to sign a partnership agreement with
the Tokyo Metropolitan Government for vitalization of sustainable financePartnership mattersbased on the agreement

Kiraboshi SDGs Evaluation Program (2022/3 –)Evaluation and feedback on customersʼ engagement with
the SDGs, to respond to customer needs to ascertain
their own level of SDGs engagement and commence
engagement from a basic level, etc.

(Conducted at Kiraboshi Consulting)2023/3 36 deals

4. Sustainability targets
Greenhouse gas emissions● Support sustainability management
promotion activities in cooperation withfinancial institutions● Work on dissemination and promotion ofsustainability management among SMEs

Scope 1, 2

● Disseminate information on sustainability
management such as cases of excellent
initiatives

Target:“Kiraboshi SustainabilityLinked Loan”“Kiraboshi Decarbonization
Support Loans”(2022/12 –)(2022/6 –)Based on the agreement, the Tokyo
Metropolitan Government will subsidize partof the expenses related to utilization ofsustainable finance for SMEs in Tokyo (*)

A preferential interest rate is applied for one
year after loan execution to SMEs that
submit “Tokyo Carbon Reduction Report”
managed by the Bureau of Environment of
the Tokyo Metropolitan Government* There will be screening prescribed by the Tokyo
Metropolitan Government

2023/3 1 deal (¥200 million)（t-CO2）

Reduction of greenhousegas emissions by FY2030

62.3％
reduction

10,900(Preliminary

4,100 figures)

60% reduction

Scope1
Scope２(Compared with FY2013)
2013

2020

2021

2022

FY

Environment-related investments and loans
Environment-related
investments and loans up toFY2030Target:¥200.0 billion¥25.5
billion・・・¥200.0 billion(FY2022 – FY2030)

2022

2030 (FY)2023/3 10 deals (¥425 million)©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

47

Sustainability (Overseas Support/Business Start-Up Support)
1. Establishment of an ASEAN Network(considering setting up a new ASEAN base)

3. Hands-on support for equity investment inoverseas businesses

Preparations are underway to open a new base of activities in Bangkok,
Thailand① Expansion of market-oriented support areas for overseas businessdevelopment② Establishment of networks with ASEAN companies, government
agencies, etc. and information gathering③ Investments and loans associated with customersʼ overseas
expansion

In line with overseas market needs, Kiraboshi not only provides support
to customers for their collaboration with Asian companies in overseas
markets, but also provides hands-on support for their overseas businessthrough equity investment.

Asiancompany

Investment

Joint
ventureInvestment

Investment

Kiraboshi
ThailandPreparations inprogress to open
a new baseVietnam
Local subsidiaryin Vietnam

Enhance the ASEAN
network by opening
a new base

Capital injection
in funds in
Singapore

Build connections

Kiraboshi Bank, Ltd.

Introduceneeds in
VietnamJapan x Vietnam
Creation of new businesses

14 pitch events

Held periodically by theme, such as“mobility,” “medical”

Open innovation pitch

Introduce Japanese companies that match the needs
in Vietnam to support creation of new businesses forboth Japanese and Vietnamese companies

Government Financial
agencies institutions

4. Pitch event for startup support

FY2022

2. Example of a market-oriented
support for overseas expansion

Needs inalliance withJapaneseparties

Hands-on support
through equity
investment* An incubation facility operated by the
Pitch event using“KicSpace Haneda” (*) Kiraboshi Group in Haneda Innovation City

Singapore

Vietnamesecompanies

CustomerJapanesecompanies

Co-hosted with H.I.S. Co., Ltd.
Held an open innovation pitch event forstartups aimed at co-creation projects
that are not limited to travel business
November 18, 2022
Signed a memorandumof understanding withTan Long Group, aleading Vietnamesecompany, with theobjective of contributing
to further developmentof the economies ofJapan and Vietnam and amore active cultural
exchange between thetwo countries.

Pitch event in a metaverse space
Startups took the platform, using web3.0 and Deeptech
Attendees participated through theiravatars
Presentation materials were displayed ona monitor screen in the space©Tokyo Kiraboshi Financial Group, inc. All Rights Reserved.

48

 Figures in this document are calculated in units of a million yen, but are presented inunits of 100 million yen. The total amount therefore may not match the total for eachitem.
 Please note that some of the figures in this document are taken from preliminary
reports.
 This document contains forward-looking statements on the Groupʼs results. Thesestatements 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 tofactors including changes in the business environment.

Please direct any comments or questions
about these briefing materials or otherIR topics to the IR office at the right.

Tokyo Kiraboshi Financial Group, Inc.
Corporate Communication Division
TEL: +81-3-6447-5799
MAIL : ir@kiraboshibank.co.jp