ANNUAL REPORTMessage from the President

Building on Our Traditions to Pioneer a New Era
as a Regional Comprehensive Financial Services GroupThe Juroku Bank was founded in Gifu-shi by local merchants, industrialists, and landowners
in October 1877 as the 16th National Bank. The spirit of our corporate plaque, “Being
Integrity Brings Prosperity.” which was donated by Mr. Eiichi Shibusawa upon thecompletion of the former Head Office, has been handed down through generations of officers
and employees to the present day.
Building on more than 140 years of the history, we established the Juroku Financial Groupand transitioned to a holding company structure in October 2021, transforming our businessmodel to become a regional comprehensive financial services group. Today, the Group iscomposed of 12 companies, including Juroku Financial Group, Inc. and its core company, The
Juroku Bank, Ltd.

Naoki Ikeda
President (Representative Director)
Juroku Financial Group, Inc.

The environment surrounding the Group is undergoing substantial change against the
backdrop oftechnological advances and rising sustainability awareness, in addition to theissues faced by present-day society such as declining birthrates, the aging population, andlabor shortages. In this environment, the Group is endeavoring to expand its business domains
through “collaboration with other industries” and the “establishment of new companies.” We
are using these efforts as a base to engage in swift transformation under our Long-Term Vision“16Vision-10” and 2nd Medium-Term Management Plan “Staying Ahead of the Curve to
Always Serve the Region: First Stage,” launched in April 2023.
We will leverage the strength of the Group’s broad range of business domains to boldly andflexibly engage in tactical and behavioral Change, continue to take on Challenges aimed at theformation of sustainable local communities, and contribute to “achieving growth andprosperity for our customers and the local community” through proactive Communication
with all of our stakeholders. Through these endeavors, we aspire to evolve into a regional
comprehensive financial services group, building on our traditions to pioneer a new era.

Being Integrity Brings Prosperity.
This corporate plaque, painted and donated to The Juroku
Bank by Mr. Eiichi Shibusawa upon the completion of theformer Head Office in April 1931, is still displayed in theexecutive conference room today.
The words “Being Integrity Brings Prosperity.” (“junri
sokuyu” in Japanese) mean that living in accordance withreason and truth will lead to prosperity. They are known as Mr.
Shibusawa’s motto, and the Group’s employees have carefully
passed them down from generation to generation.

01

JUROKU Financial Group ANNUAL REPORT 2024

02

Utilizing the Holding Company to Transform the Business Model
More than two-and-a-half years have passed since theestablishment of Juroku Financial Group, Inc., and I feelthat we have made substantial progress on the threepillars we set forth at the time of its establishment: theexpansion of business domains, optimal allocation ofGroup management resources, and more sophisticatedgovernance.
Regarding the expansion of business domains, first ofall, we have been able to swiftly create operating
subsidiaries to address the issues faced by companies andlocal communities, such as DX, urban development, andmanagement succession. We have also actively pursued
alliances with highly specialized companies in otherindustries, generating substantial results. It is significant
that our partners are the top-class companies in theirindustries in Japan. It is only by establishing
relationships of trust that we are able to provide highquality services. In this era of transformation, staying“Staying Ahead of the Curve” enables us to win the trustof our customers. We will strive to leverage the knowhow we have acquired in new business domains to enable
our customers to understand the changes we have madeand gain a solid sense of our new value.

ext, regarding the optimal allocation of Groupmanagement resources, we introduced a new humanresources (HR) system in April 2023. At the same time,
all employees transferred to the holding company. By
introducing a system where employees declare “My
Vision” (what they aspire to be) and their“Commitment” (target) to achieve this vision, we haveenabled them to demonstrate their high individual
expertise and hidden talents beyond the limits of thebanking business. Our business domains have expanded,giving our diverse workforce more opportunities to play
an active role in the region. We will listen to each
employee’s aspirations for the kind of contributions theywant to make to the region and support them in taking
challenges.
Regarding more sophisticated governance, in FY2023,
we conducted an evaluation of the effectiveness of theBoard of Directors through the involvement of a thirdparty agency, confirming that the Board of Directors is
operating appropriately. We hope to continue to improve
the quality of decision-making by incorporating thevarious views and perspectives of members from diverse
backgrounds, aiming to further enhance corporate value.

Cultivating a “Growth-oriented” Mindset
The reform of employees’ mindset is essential to theimplementation of these three “C”s. Customer trust is
our starting point: it supports all of our activities. To
build relationships of trust with our customers, it is vitalfor all our employees to be highly motivated to engage
in thorough dialogue with customers. To maintain thishigh level of motivation, it is crucial that each individual
employee develops a positive, “growth-oriented”
mindset. With the return of positive interest rates,
especially, we must display the “leadership” to constantly
scrutinize shifts in the external environment and stand at
the forefront of reform, as well as the “management” toensure we realize the goals of our own departments. At
the same time, through “human resources development”
to support these endeavors, we must cultivate a “growthoriented” mindset within our organization. To this end,
one of the first things we did this year was to establish“leadership workshops” for middle-management
employees such as branch managers of The Juroku Bankand the corporate officers of Group companies. ThroughSeniormanagement

Staying Ahead of the Curve: the Four “C”s
In this era of increasing uncertainty, we are looked upon
to prove our true value as a regional financial institution.
Under the new business model we have launchedthrough the Group’s transition to a holding company
structure, we will assess and identify shifts in thebusiness environment as we boldly and flexibly engage
in tactical and behavioral Change, constantly seize theinitiative to take on new Challenges to address anManagers andmiddle-managers

unpredictable future, and aim for proactive
Communication with our customers and between our
employees. Through a resolute and unified Group-wide
approach to these three “C”s, we will capture our Chance
to stay ahead of the curve, steadily advancing as aregional comprehensive financial services group thatserves the region as a frontrunner in the local communityand society.

Assistant Manager andgeneral employees

six sessions of lectures, group work, and presentations,
we have been able to unify the direction of the Group’s
vision while also establishing a structure that will enable
us to focus on our core business as Japanese society
returns to a world of positive interest rates.

LeadershipManagement

Constantly scrutinize
shifts in the external
environment and standat the forefront of reform

Ensure we realize
the goals of ourown departments“Growth-oriented” Mindset

New employees

Human resources
development

Prospective employees

Create an organization that
supports leadershipand management

Assess and identify shifts in the business environment as we boldly
and flexibly engage in tactical and behavioral Change

Change

Seize

Challenge

ChanceConstantly seize the initiative to take on
new Challengestoaddress an unpredictable future03

JUROKU Financial Group ANNUAL REPORT 2024

The Group’s Growth Strategy

throughthe 3 “C”s!

Communication

Proactive Communication with ourcustomers and between our employees

The Group’s growth strategy is to focus on allocating
management resources to our core business, includingloans and deposits, where we have a competitive
advantage and can grow independently. At the sametime, for businesses anticipated to experience increasing
demand from local communities in the future, we willachieve growth without expending costs or time,engaging in alliances and mergers across all industry
sectors. A customer-first marketing approach will be
crucial to demonstrate the true value of our corebusiness: we must engage in thorough dialogue with ourcustomers to ascertain the needs and issues they face andprovide them with high-value-added services to addressthese needs. We will endeavor to deepen our corebusiness through the broad, deep customer basedeveloped by The Juroku Bank over more than 140 years
in business while also reaping the maximum returns
from the know-how accumulated by Group companies innew business domains, to achieve Group-wide integrated
sales activities for our core business. With the return ofpositive interest rates, we aim to know our customers aswell as we know ourselves, by giving attention to,connecting with, and closely supporting them.

04

The Group’s Growth Strategy

Initiatives for Enhancing Corporate Value

Securities

Tokai Tokyo
Financial Holdings

Businesses anticipated
to experience
increasing demand
from local
communities in
the future

Businesses where theGroup has a competitive
advantage and can growindependently

RetailResona Group

Focus on loans and othercore business areas

Focused allocation ofmanagement resources

Alliances and mergers acrossall industries

Digitalization

Densan System Holdings
Co., Ltd.
DXSoftBank
Business succession

Nihon M&A Center
Holdings

Reduce costs and time,
growing throughthe insightof other enterprises

Providing High Added
Value
Businesses where
the through Alliances with Other Industries
Group has a competitive<Earnestly engaging in important,issuesadvantagepressing
and can growfor the region>
independently
In July 2023, we established NOBUNAGA Succession
Inc., a joint venture with Nihon M&A Center Holdings
Inc., to support management succession among small
and medium-sized enterprises in the region. Gifu
Prefecture, where the rates of population decline andaging exceed the national average, is seeing a marked
increase in the number of enterprises closing down as
their representatives get old and no successor isforthcoming. The potential management succession
needs are limitless. We have avoided using the word
“Juroku” in the company name and separated it from thebusiness operations of the Bank itself, to enable us tostay close to the sentiments of business managers who
might find it difficult to talk about succession issues
with a bank they borrow from on a daily basis. We
connect the deep and heartfelt wishes of business
managers with people who love the region and will
earnestly engage in managing their enterprises.
<Providing high-quality financial services
unprecedented in the region>
In February 2024, we launched a new alliance with theResona Group in the retail field. We aim to leverage ourmutual know-how to make maximum use of thestrength of both corporate groups. In fall 2024, The
Juroku Bank will begin to offer a mutual fund wrap as
we endeavor to enhance our support for customers’ asset
formation. In spring 2025, we plan to launch a banking
app. The banking app offered by Resona Group,
especially, is well evaluated by users and boasts
significant competitive advantages. Utilizing this app as
our own product is expected to enable us to capture
customers across all demographics in the region. We
envisage an era when our customers will carry around
The Juroku Bank in their pockets, as an app on their05

JUROKU Financial Group ANNUAL REPORT 2024

smartphones. In addition to optimizing management
resources while reducing the cost and duration ofinternal development, we will be able to provide ourcustomers with higher-quality financial services,
unprecedented in the region.

<Boosting productivity to optimize the creativity of
our employees>
In collaboration with SoftBank, we are striving to
improve the operational efficiency and productivity of
the Group’s officers and employees through DX, withthe aim of achieving a virtuous cycle for our corebusiness. Through the full cooperation of five SoftBank
employees, including employees at the level of generalmanager and deputy general manager, who have been
seconded to the Group, The Juroku Bank introduced the
new groupware Google Workspace (GWS) in September
2023. In March 2024, we went on to unify groupware
across all 12 Group companies. We are taking up thechallenge to bring about “true reform” by reinventing
the way we communicate. The Start-up Support Hub“STATION Ai” (the largest incubator facility in Japan),operated by a subsidiary of SoftBank, will commence
operation in Aichi Prefecture in October 2024. Throughour connection with SoftBank, we have dispatched one
employee from the Group to this facility, starting in
April 2024. NOBUNAGA Capital Village, the Group’s
dedicated investment company, has held events
including three consultation sessions in the STATION
Ai facility since October 2023 in preparation for its
opening. We are strengthening our contact points withthe promising start-up companies gathering in Aichi
Prefecture from across Japan. We will actively cooperatewith these start-ups to jumpstart the creation of global
innovations from Aichi Prefecture.

We endeavor to engage in constructive dialogue withshareholders and investors with the aim of achieving
sustainable growth for the Group and enhancing its
medium- and long-term corporate value. In FY2023, we
focused on creating more contact points withstakeholders, holding a total of 30 small meetings andone-on-one meetings, twice as many as in the previous
fiscal year. The requests received through this dialogue
were reported to the Board of Directors and otherrelevant bodies, which discussed future initiatives toenhance corporate value.
Based on these discussions, we amended ourshareholder returns policy from a “total payout ratio of atleast 25%” to a “dividend payout ratio of at least 30%,”
aiming for more substantial shareholder returns. In
addition to achieving our sixth consecutive fiscal year of
profit growth, we raised our dividends for the fifth
consecutive fiscal year. As a result, total dividends havemore than doubled over the past five years, and thenumber of shareholders is also increasing steadily. In
FY2023, we also reduced our cross-shareholdings at afaster pace than planned under the Reduction Policy of
Cross-shareholdings. At the same time, we are actively
engaged in climate change countermeasures, including
enhancing our disclosure based on the TCFD
recommendations and bringing forward our target for
carbon neutrality from 2050 to 2030.

Looking ahead, we aim to ensure a consolidated ROE
of 5% or more. Higher ROE is crucial to improving
PBR, and we intend to utilize the capital invested in theGroup by our shareholders to grow our businesses in themedium and long term.
In addition to demonstrating the true value of ourcore business amid the return of positive interest rates, it
is important that we steadily boost revenues from a
medium- and long-term perspective. We will do this byactively implementing measures such as investments
linked to the Group’s growth, including alliances withother industries, and investments aimed at businessstreamlining through DX. To accomplish this, it isessential that we procure stable deposits from ourcustomers in the region. We will therefore also ensure weachieve our target capital adequacy ratio, which is ameasure of financial stability and soundness. I believe it
as my personal role and responsibility to clearly set forthand steadily implement a roadmap to achieve thisenhancement of corporate value.

06

Backing Employees to Undertake Diverse Challenges
One year and three months have passed since weintroduced our first new HR system in 22 years,transferring all our employees to the holding company as
we aim to optimize Group management resources. As aresult, the Group’s management philosophy has
penetrated more thoroughly through our workforce. Bylooking back over their progress from the time when
they joined the Group to the present, employees havegained more opportunities to think deeply about how
they can contribute to our customers and the region, andact on this awareness. Our emphasis on integrated Groupmanagement has encouraged employees to perceive
secondment to non-bank Group companies, which
previously had a negative image, in a positive light.
When establishing several new companies, we have
utilized the in-house open recruitment system to enable
employees to take a career challenges in a broad range ofbusiness domains. For example, in response to openings
for around 10 employees each for the companies we have
set up in recent years, we received 48 applications for
Juroku Densan Digital Service Co., Ltd., 83 applications
for Kanda Machiokoshi Co., Ltd., and 61 applications for
NOBUNAGA Succession Inc. These numbers bear
witness to the high degree of interest among employees.
Upon seeking the values common to our employees,
we found that many employees “hope to continue to livein the region they were born and raised in.” In otherwords, many employees joined the Group because theywanted to work in the local area. The common quality
shared by these employees is a passionate desire to “behelpful to the region.” We will provide strategic support
to enable the employees with this desire to utilize theirindividuality in autonomously taking challenges for theregion.
Additionally, from the perspective of D&I and under a“positive evaluation” approach, supervisors have become
receptive to the aspirations and individuality of theirsubordinates and engage in two-way dialogue that
extends beyond work to include matters such as hobbies,
special skills, and social contribution activities, whichenable them to achieve rich lives as members of society
and consumers in the region. This change in employees’
way of interacting with their supervisors can also becited as a result of our new HR system. Going forward,
we will continue to cultivate an organizational culturethat enables each individual to play a highly motivated,
active role.

Leading the Region with the Appointment of a Female Career Employee as a Director
The Group has actively promoted women to
management positions and systematically engaged inhuman resources development for female leaders
expected to rise to management positions in the future.
As part of these efforts, we appointed a female career
employee to the position of Director and Executive
Officer in June this year, the first such promotion by aregional bank in the Tokai region. This female Director
has advanced knowledge and executive ability withregard to sustainability and other issues. Her
involvement in decision-making is expected to facilitate
the generation of innovative ideas and creative solutions
from the female perspective, enhancing corporate
performance. Her presence as a role model will also serve

07

JUROKU Financial Group ANNUAL REPORT 2024

as a great encouragement for young female employees,
embodying their future aspirations and leading to thedevelopment of a mindset focused on working in theGroup over the long term.
By increasing the forums for female participation andadvancement, companies are able to boost the vitality of
their entire organizations. In this region, where thedeclining population has become an issue, theparticipation and advancement of women, especially, isessential. By creating environments that make it easierfor female employees to build their careers, we hope tocontribute to the sustainable development of local
communities.

Group-wide Participation in Gifu Prefecture’s Largest Sporting Event
Each year, the Group is involved as a major sponsor in
The Takahashi Naoko Cup / Gifu Half Marathon. A totalof 107 runners participated in this year’s race, andapproximately 1,000 employees and family members
participated as volunteers and supporters. In 2017, the140th anniversary of the founding of The Juroku Bank,
all the Directors ran with the aim of completing thecourse. Ever since then, I have personally participatedeach year as a runner. I have a lot of fun interacting withour business partners and other acquaintances along theway.

The race is an important event for nurturing a sense ofregional solidarity through sport. It is also a perfectopportunity for visitors from outside the prefecture tounderstand the goodness of Gifu. The Group’s runners
wore T-shirts imprinted with an image of “Juroku’s
Momo,” played by the actress Momoko Fukuchi in our
corporate commercials. They ran with the message “Let’s
create the future of our beloved town” on their backs.
Our volunteers and supporters, wearing orange T-shirts,
the color of the Juroku Financial Group, delivered smiles
and cries of encouragement to the runners as the “Region
energize team”
I feel that this participation in a major local event
made many employees aware of just how wonderful it isto place oneself amid the scenery of this region. It’s
important for the officers and employees of a financial
institution rooted and active in the region to experience
first-hand the values of running and supporting runners
in the region where they were born and where theirfriends and family are. Therein lies the significance of
our Group-wide participation in this event, which beganwith all the Directors entering as runners.

Towards Realizing a Sustainable City
The Juroku Bank will celebrate its 150th anniversary in
2027. In this milestone year, we plan to construct a newheadquarters building, the “16FG Office & Park.” Thisis an extremely important project that will embody theGroup’s management philosophy of “achieving growthand prosperity for our customers and the local
community.” The project is based on two main concepts.
The first is the creation of a “beautiful and comfortablecommon space” to provide added value to everyone in
the region. The second is to establish a base with a“workplace that is ahead of its time,” centralizing ourheadquarters functions to enable an integrated Groupwide business promotion system. The first to third floors
will feature an atrium, where we plan to build a roofedpark filled with natural light and breeze. We aim tocreate a stylish space for nature and people to gather: thekind that will live on in the memory as, for example, aplace one used to visit on the way home from highschool. We are also considering making this a smart
office building. Although I’m not sure how much wewill be able to achieve, I would like to endeavor to create
an attractive workplace utilizing digital and robotic
technologies that will make students from the region
want to return to their hometown to work. Based onthese concepts, we will realize the “formation of spaces togather the bustle which is the source of vitality andsupport the creation of prosperity to achieve asustainable city,” a goal set by the Gifu municipal
government.
The Group only exists because of the trust placed in
us by customers and the region. In this context, theGroup’s Purpose of “achieving growth and prosperity forour customers and the local community” represents auniversal value. All our employees will work together
across the entire organization with this value at heart,aiming for our vision of where we want to be in 10 years:
a regional comprehensive financial services group thatstays ahead of the curve to always serve the region.
We ask for your further support in the future.

08

Dialogue between

Chairperson
andFemale Directors

Tomoko Shiozaki

Yukio Murase

Satoko Ito

Satoe Tsuge

Director andExecutive Officer(Dialogue facilitator)

Chairperson(Representative Director)

Outside Director

Outside Director(Audit & Supervisory
Committee Member)

The Future Being Opened Up by Female LeadersCompany growth and local community development resulting from diversity
Trends for the Promotion of Women’s
Active Participation in the Workforce in
Global and Local Communities

09

The dialogue was held on the theme of “promotion of women’s active participation in the workforce
and advanced corporate governance” for facilitating sustainable growth for companies and resolving
regional issues.

Ito: Even in local communities, the active participation of

the work-life balance, including childcare leave and theyet to close the gap between women and men. Japan must

women is seen as important. In Japan, “the worker shortage andpromotion of flexible working arrangements, are probably key.

strengthen policies to support women’s active participation inmarket contraction” is inhibiting the nation’s growth, with

Ito: Yes; the creation of a gender-neutral system must continue.

society while referencing advanced initiatives taken byfemale participation in the workforce essential. Therefore, we

Shorter working schedules also lead to a sense of unfairness

countries focusing on advancing gender neutrality.

Shiozaki: Female leadership in global and local communities ismust establish environments that enable women, who havewhen applied only to women and conversely, work to keep

Ito: Exactly. I believe that the future is in danger unless we canbeing viewed with increasing importance. Could you please

experienced childbirth and raising children, to balance both

women saddled with a sense of shame. I think we must strive

spark innovation now that incorporates the varying perspectives

share your view on the reasons for this?

work and family and ensure that they do not have to sacrificefor greater efficiency and skills diversification to ensure thisof women.

Tsuge: As a global trend, there is growing recognition thateither the rewards from working or the joy of motherhood.

applies to all workers regardless of gender.

Tsuge: This is the time that “women’s advancement,” which isfemale leadership promotes gender neutrality and contributes to

Shiozaki: Yes. I believe that the promotion of women’s active

Tsuge: It’s also necessary to foster a corporate culture to enable

our theme today, is needed. I believe that by women taking

improvement in social welfare. Scandinavian nations that haveparticipation in the workforce is essential in Japan, where theuse of systems by anyone, regardless of gender.

leadership it will improve the diversity of organizations andbeen progressive in adopting gender quota systems have become

declining population is a serious issue, and particularly in

Murase: Against that backdrop, in the Global Gender Gap

society as a whole and enable even more comprehensive decision

comfortable countries to live for everyone due to theregional areas. Concrete initiatives are needed to support

Index for 2024, which was released in June of this year, Japanmaking. There is also the benefit of being able to implement

advancement of gender-neutral societies. For conflict resolution

women’s return to work and career continuity, just like inranked 118th among 146 countries and scored the lowest of theeven more effective initiatives with fresh ideas by reflecting

and peace building as well, female leadership is regarded as

Scandinavian nations that have for many years implemented

G7 nations. Notably, Japan continued to perform poorly in the

different perspectives and experiences.

effective, and its importance is growing.

policy to aid women’s social advancement. Initiatives focused onpolitical and economic fields and reconfirmed that Japan is still

JUROKU Financial Group ANNUAL REPORT 202410

significance. I have high hopes that you will be a “great role(HR) system. The fact that the retention system*1 and job

gender-neutral work styles are essential, in my view.

model” who helps increase the numbers of female workers

return system*2 are actually being utilized is testament to the

Ito: Yes. Care needs to be taken to ensure that motivation of

empowered to strive to be a manager or officer.

establishment of an environment enabling employees to balance

women who have been promoted does not wane and that the

Shiozaki: Thank you. I hope that by having more women inwork and family with peace of mind.

organization stops functioning well upon hearing dissatisfaction

executive and managerial roles will spur female employees to

Shiozaki: As of March 2024, 11.8% of officers were women, an

voiced by male employees as to “why did that woman gettake up the challenge and prompt greater motivation toincrease of 1.8 percentage points over the past three years. The

promoted?” In addition to “creating a gender-neutral system,”advance their careers. With the positive impact spreading

Company is providing training in a systematic manner not just“long-term human resources development plans” will bethrough the organization, there is potential for even further

for managers but for female human resources expected to beabsolutely necessary.

growth as a company. I will continue to work to establish an

promoted to managerial roles in the future. Also under the new

Shiozaki: The next step needs to be the establishment of aenvironment where women can flourish and to nurture the next

HR system, 104 employees made use of the retention system inscheme supporting women advancing their careers to thegeneration of leaders.

FY2023 alone, which was due in part to lengthening the period

managerial level. It’s important to introduce a promotion

Ito: It’s excellent, isn’t it? In regional areas, there is a strong

for the shorter working hours for childcare and improvements

process that is fair and transparent, ensuring that for instance, a

unconscious bias about “what women are supposed to be” andin its flexible operation. Furthermore, there were two applicantsfemale employee who has stepped away from work for two

the loss of career-focused women from regional areas in search ofunder the job return system. Going forward, I think there is ayears, is promoted similarly to a male colleague after she returns

job satisfaction is a major challenge faced. There are alsoneed to achieve further enhancement of the systems.

to work. Developing an environment where women are able toMurase: In order to do so, there must be changes in theprobably many women who feel a sense of hopelessness. Amid

Murase: Also from the perspective of the advancement of ESG

advance their career with confidence is the key to realizing true

corporate culture as well as in-house ways of thinking.

this, if female managers and officers can be produced from local

and human capital management, the ratio of female managers

gender neutrality.

Companies that have established systems and environments

companies, I think that hopelessness could turn to hope andhas important meaning as an indicator vividly showing theMurase: In summarizing the issues, first of all, clarification of

enabling women to build their careers ultimately attract diversethat more women would stay in regional areas.

success of women. Companies with high ratios are not only

career paths after returning from childcare leave and creation ofhuman resources and have higher corporate competitiveness.

Tsuge: I anticipate others will be influenced by Juroku

meeting their social responsibilities but are also improving

a structure to actively support employees is probably key. It is

Flexible work styles, including the adoption of flex-time

Financial Group and we will see “moves to promote femaleorganizational performance. I also look forward to an innovative

important to assuage concerns held by female employees andsystems and remote work, and the expansion of childcare leave,

officers who have moved up the ranks” spreading even to otherapproach to solving the issues faced by local communities

encourage them to engage in work with confidence. Also

must be actively supported.

regional companies.

through the leadership of women.

needed are specific measures such as abolishing gender-based

Murase: Listening to all of your comments, I am struck byTsuge: From that viewpoint, the activities of Juroku Financial

roles, as set out in the Company’s human resources development“how vital a role that female officers and managers play in theGroup’s female project team Jewelia along with events byplan, creating opportunities to build a broad range of work

sustainable growth of companies and regional economies.”

NOBUNAGA Capital Village designed to nurture female

experiences also for women, including in financing and public

Especially in Gifu Prefecture, where the population is declining

entrepreneurs are extremely meaningful.

relations, and presenting career plans aiming for managerial

at a faster pace than the national average, if a framework could

Shiozaki: Yes; female employees are actively involved in both,roles. The penetration of these structures through the

Shiozaki: Next, I’d like to ask about the significance andbe put in place to flexibly utilize highly talented women fromand I think this sends a positive message to local communities.

organization will be important in order to continue promoting

necessity of promoting female officers and managers. What type

local communities in a variety of ways, it would invigorate theNext, I’d like to ask for your honest opinion about “issues.”

female officers.

of impact do female leaders have on companies andlabor market and lead to economic development. Against thisTsuge: I want the Group to strive for a higher ratio of female

communities?

backdrop as well, the Group, which is actively appointing

managers. While it is vital to create an in-house structure to

Ito: For academic performance, I think Japanese women are atwomen, has been first to establish an environment making it

continue to promote women, women who have given birth face

the top level in the world. Today, with SDGs intimately

easy for female workers to advance their careers, and we must

unclear career paths after returning to work after childcare leave

connected with management, uniquely female empathy,

broadcast this model to local communities.

and their concerns about limitations on promotion

Significance and Necessity of Promoting
Female Officers and Managers (Impact on
Companies and Communities)

communication capabilities, environmental awareness and social

opportunities need to be allayed.

contribution perspectives are essential, and therefore, there is a

Ito: Exactly. I think it is also important to consider a job-basedstrong need for the leadership of female officers and managers.
Tsuge: A company’s competitiveness is created from having

Creating Systems for Promoting
Female Officers

highly talented women involved in decision making, as you

11

structure whereby employees are evaluated correctly for theirskills and track record, with no negative impact on evaluations
and no harm to career advancement. Invisible pre-set notions

mention, but in Japan the percentage of women in executive

Shiozaki: I’d like to discuss the Group’s initiatives formust not be allowed to close off careers.

and managerial roles is still low and the majority of companies

promoting the active participation of women. To begin with,

Murase: These are compelling issues, and concrete support

are starting out by appointing women as outside directors. I

please share your views on what you rate highly.

initiatives and a change in employee thinking is needed.

believe that at such organizations, this will not translate to

Ito: In order to promote female officers and managers in quick

Shiozaki: Personally, I also think that “acquiring the skills andnurturing female employees who aim to be managers or officers

succession on the heels of Ms. Shiozaki, more women must

experiences appropriate to become a female officer or manager”

in the future.

acquire the skills and experience appropriate for such roles. In

is an issue for the Company, as Ms. Ito expressed earlier. Human

Ito: That’s because young female employees need a “close

this respect, I have a good impression of the female leadershipresources development with a long-term view and reforms forexample.”training program and as well as of the training provided to

Tsuge: Against such a backdrop, I think that Ms. Shiozaki

learn about financing operations.

becoming “Juroku Financial Group’s first female director who

Tsuge: I think it’s excellent that the advancement of flexible

has moved up through its ranks” holds considerable

working styles is being realized due to the new human resources

JUROKU Financial Group ANNUAL REPORT 2024

*1 Retention system: Systems for shorter working hours for childcare and for exemptions from overtime can be utilized until a child completes thethird grade of elementary school. Working hours can also be set according to individuals, enabling employees to balance work and childcare withpeace of mind.
*2 Job return system: A system to re-employ former employees who had to leave the Company due to life events such as marriage and childbirth.

12

The Company is working to achieve its KPI of increasing theenhancing collaboration with companies in other industries,

ratio of female managers to 20% by FY2030. In the future, it

and amid the creation of a string of new group companies, there

will be easier for young women to envision their own future andmust be an awareness that differing corporate cultures andstriving for a managerial role will no longer be somethingvisions between the Company and joint venture target

Murase: Finally for this theme, I’d like to ask you all as female

special due to women in managerial roles with varying careers. I

companies could translate to considerable risk. I think it would

directors to send a message or words of advice to young female

intend to increase opportunities for women in this Company to

be good if there were opportunities to report to the Board of

employees working in regional communities.

demonstrate their leadership and broadcast their performance toDirectors as to “what the situation is, are there any issues, and if

Ito: There may be some among you who think “I don’t have thethe regional community.

so, what action should be taken.”

Messages and Advice for the Next
Generation of Female Leaders

Tsuge: Another point that concerns me as an issue that theconfidence, even if appointed to a managerial role. Shoulderingsuch responsibility is hard work and I have concerns that whenthings get busy, I’ll have to sacrifice my family or managing myhealth.” However, for Juroku Financial Group to “continue toGovernance Translating to Enhanced
Corporate Valuesupport the community” it needs the support of women. In

branches following improvement in banking operational
efficiencies. As seen at other banks, “branch use now tends to beinconvenient.” For the Group’s The Juroku Bank, I would likeorder to realize this philosophy, please express your candid

Shiozaki: Next, I’d like to hear your opinions on theto see a continuation of operations rooted in the community andthoughts without fear, including “what you feel are theappropriate operation of the Board of Directors and issues thatclosely tied to customers.

contribution to the creation of a pleasant working environment

obstacles, or what could be done to make things easier.” Also inneed to be improved by the Group from your standpoint as

Murase: For the sustainable growth of the Group and towhere all employees can readily express their own opinion.

a household, child rearing and housework is undertaken by both

Chairperson of the Board of Directors for Mr. Murase, and fromenhance medium- and long-term corporate value, I will

Ito: In order for deeper discussions by outside directors, I think

the husband and wife. It is also important to respect each otheryour standpoints as outside directors for Ms. Ito and Ms. Tsuge.

continue to further lift the effectiveness of the Board of

it is important to ask questions and give frank opinions from an

and build a relationship of support.

Murase: In order to further enhance corporate value, theDirectors by enhancing discussion of important matters forobjective position on a variety of issues after thoroughly

Tsuge: The promotion of women’s active participation in theoperation of the Board of Directors is extremely important. As

management as well as include outside directors and makelearning about what type of discussions have taken place within

workforce has only just begun in Japan but I feel that little by

Chairperson of the Board of Directors, I am strengthening thecontinuous improvements in the operation of the Board of

the company. For outside directors as well, I feel that thelittle, steady progress is being made. Due to the rapid adoption

structures for confirming that the effectiveness of the Board is

Directors.

opportunity to connect with various stakeholders, including

and spread of remote working, work systems are in place that

secured. In FY2023, we conducted a questionnaire forenable flexible responses to changes in women’s work styles as aevaluating the effectiveness of the Board of Directors on the

result of marriage or childbirth. I’d like you to also definitely

advice of an external institution. Based on these results, I will

make use of these systems, to feel fulfillment in your own work

strive to further improve the functioning of the Board ofand design your career plan. Please consider various ways on

Directors and invigorate discussion.

“how to continue working” without having to sacrifice yourIto: For the Board of Directors, there is a sense that outside

Shiozaki: Finally, I would like to hear your opinions about

Board meetings. I think it is important to thoroughly discuss

own work for child rearing. If there are shortfalls with systems

directors like us who have differing backgrounds are able toinitiatives to improve the diversity and effectiveness of thelong-term management strategy also at such times.

to do so, I ask you to proactively make suggestions to the

speak freely and discussions are unfettered. For evaluations ofBoard of Directors going forward.

Ito: I believe the Board of Director meetings must be a place toCompany.

the effectiveness of the Board of Directors, because the

Tsuge: Firstly from the standpoint of diversity of the Board of

discuss the “forest” rather than the “trees.” I wonder if thequestionnaire is conducted anonymously by an external

Directors, I believe that selecting outside directors fromsubject of the broad direction could be regularly discussed andinstitution, a structure is in place for receiving candid opinions

distinct fields is effective in lifting effectiveness. On the otherdetails about the direction of discussions by the Board ofas well as for enabling speedy improvements.

hand, when it comes to internal directors, members are

Directors could somehow be refined so as to be shared with

Tsuge: Yes; an environment has been created that makes it easy

heterogeneous given that they are all bankers, and so, I think

employees. If each employee has an awareness of managementfor outside directors to share their opinions and ask questions,being able to tweak selection to ensure opinions from evenand becomes a matter for self-improvement and team building,and I feel discussions are free and unrestricted. Also, for mattersslightly new perspectives would be effective.

I believe it could translate to the growth of the entire Group.

for deliberation and matters to be reported, documents are

Murase: I see. Having members with diverse backgrounds inMurase: To summarize everyone’s opinions, in order to improve

prepared in great detail and sent to us ahead of time, which is a

the Board of Directors is vital for sustainable growth of athe effectiveness of the Board of Directors, there is room for

great help.

company. By incorporating various opinions, the quality of risk

improvement insofar as incorporating diverse opinions, having

Murase: The results of the questionnaire confirmed that the

management and decision making is improved. In particular,

more active discussions with a long-term view and enhancing

Board of Directors overall is functioning appropriately, but I

the appointment of female directors also contributes

communication beyond the Board of Directors. I will take thisthink it is necessary to review the content of Board of Director

substantially to corporate social responsibilities (CSR) andinto consideration. Let’s indicate the direction we should follow

materials and further enhance opportunities for communication

sustainability (SDGs). In that sense, our expectations for Ms.

as a result of decisions by the Board of Directors and work

between internal and outside directors and the executive

Shiozaki are high.

together with all employees to achieve the same goals.

departments.

Shiozaki: As a member of the Board of Directors as well as

Shiozaki: Thank you for this long and lively discussion. I

Tsuge: Indeed, I feel there is room for improvement, includingfrom the viewpoint of sustainability, for which I am responsible,

believe that strengthened functions of the Board of Directors

simplification of materials and explanations that zero in on key

I intend to actively put forward suggestions in order to improve

are indispensable for sustained company growth. Again, I will

points when dealing with complicated details for items on thecorporate value. Additionally, a diverse Board of Directors nottake up the challenge on this new stage.

agenda.

only increases company competitiveness but also contributes to

Ito: Additionally, as issues specific to the Company, which is

the growth of each individual employee. I will work to ensure a

Shiozaki: Going forward, I will strive to create a company
where women can continue working and are also able toadvance their careers, like their male counterparts. In order todo so, I’d like female employees to actively take up thechallenge of new work or roles where they have no experience.

13

Group should improve is in regard to customer service at

JUROKU Financial Group ANNUAL REPORT 2024

shareholders, and hear their opinions will enable effective

Board Diversity and Strengtheningof Functionscomments for even greater effectiveness of the Board of
Directors.
Tsuge: I’m of the same opinion. I would be grateful for theopportunity to deepen my understanding outside of regular

14

Operational and Financial Highlights

The Juroku Bank

Akihide Ishiguro,
President(Deputy President, Juroku Financial Group, Inc.)

Performance for FY2023

Summary of Consolidated Financial Results of the
Juroku Financial Group(Billions of Yen)
Consolidated core gross operating profit(Year-on-year)

73.3

(1.2)

The Juroku Bank
Summary of Non-consolidated Results(Billions of Yen)

March 2024

(Year-on-year)

Core gross operating profit

64.2

(1.5)

52.8

1.7

Net interest income

54.0

2.2

Fees and commissions

18.5

(0.2)

Fees and commissions

12.5

(0.1)

1.8

(2.9)

Other operating profit (Excluding profit on
JGBs and other debt securities)

(2.3)

(3.4)

44.1

0.2

37.3

0.2

Personnel expenses

23.4

(0.1)

Personnel expenses

17.8

(0.3)

Non-personnel expenses

17.8

0.4

Non-personnel expenses

16.9

0.6

Expenses

15

March 2024

automobiles, which has a broad base of related industries, as
the impact of shortages of materials such as semiconductors
mitigated. In the financial environment, the Bank of Japandecided to end its negative interest rate policy in March 2024
and took steps to normalize monetary policy, thus marking amajor turning point for the Japanese economy.
In both Gifu and Aichi prefectures, which make up the

Net interest income

Other operating profit (Excluding profit on
JGBs and other debt securities)

Juroku Financial Group
Consolidated Business Projection

Business Projections for FY2024

The Japanese economy in the current fiscal year saw progressin normalization of socioeconomic activities, as COVID-19
was reclassified as a Class 5 infectious disease under the law
and human flow recovered. This led to solid corporate
performance primarily owing to a recovery in consumption ofservices such as the lodging and dining, an increase in
inbound demand, as well as increased production of

Expenses

Consolidated core net operating profit

29.2

(1.4)

Core net operating profit

26.8

(1.7)

Profit on JGBs and other debt securities(14.2)(6.5)(14.2)(6.5)

Consolidated net business profit

14.9

(8.0)

Profit on JGBs and otherdebt securities

Credit-related costs

0.9

(0.7)

Net business profit

12.5

(8.3)

Profit on equities

13.3

9.7

Credit-related costs

0.5

(0.9)

Ordinary profit

27.9

0.7

Profit on equities

13.3

9.7

Net income attributable to ownersof the parent

Ordinary profit

26.0

0.5

19.3

0.7

Net income

18.7

0.8

JUROKU Financial Group ANNUAL REPORT 2024

year on year to ¥27.9 billion and net income attributable toowners of the parent increased by ¥0.7 billion year on year to¥19.3 billion, both representing increases in profits for thesixth consecutive term.
The Juroku Bank, the core company of the Group,
reported core gross operating profit of ¥64.2 billion, adecrease of ¥1.5 billion year on year, mainly due to a decreasein other operating profit associated with increased foreign
currency funding costs, despite an increase in net interest
income caused by increases in loan interest and interest anddividends from securities. Expenses increased by ¥0.2 billion
year on year to ¥37.3 billion, and core net operating profit
decreased by ¥1.7 billion year on year to ¥26.8 billion. While
profit on JGBs and other debt securities decreased due towrite-offs of foreign bonds and investment trusts, profit onequities increased due to the sale of cross-shareholdings,
resulting in ordinary profit of ¥26.0 billion, an increase of¥0.5 billion year on year, and net income of ¥18.7 billion, an
increase of ¥0.8 billion year on year, both representing
increases in profits for the seventh consecutive term.
As for major account balances, loan balance increased by¥145.4 billion year on year to ¥4,870.4 billion, and deposit
balance, etc. increased by ¥126.0 billion year on year to¥6,440.3 billion, both showing steady growth

main business base of the Group, production and exports
picked up, mainly in transportation machinery, one of themain industries, despite temporary downward pressurecaused by quality fraud issues in automobiles. While personal
consumption continued to pick up as human flow recovered
to pre-COVID levels, there has been a growing tendency torefrain from consumption due to inflation exceeding wage
increases.
In such an economic environment, the Groupdemonstrated its comprehensive capabilities and made efforts
to provide a broad range of support to its customers,
including cash flow support and core business support, while
engaging in high-value-added consulting activities, among
others.
As a result, consolidated core gross operating profit
decreased by ¥1.2 billion year on year to ¥73.3 billion due toa decrease in other operating profit associated with increased
foreign currency funding costs and other factors, despite anincrease in net interest income.
Consolidated core net operating profit decreased by ¥1.4
billion year on year to ¥29.2 billion, as expenses increased by¥0.2 billion year on year to ¥44.1 billion mainly due tostrategic DX investments.
Due to a decrease in credit-related costs and an increase inprofit on equities, ordinary profit increased by ¥0.7 billion(Billions of Yen)

March 2025(Projected) (Year-on-year)

In FY2024, we expect consolidated core gross operating
profit to increase by ¥2.5 billion year on year to ¥75.8
billion, taking into consideration future trends inmonetary policy and foreign exchange rates following the
Bank of Japan’s lifting of negative interest rates andinterest rate hike in March 2024. Meanwhile, we
conservatively estimate credit-related costs, and expect
ordinary profit of ¥27.5 billion, a decrease of ¥0.4 billion
year on year, and net income attributable to owners of theparent of ¥19.0 billion, a decrease of ¥0.3 billion year on
year, maintaining profit levels on par with last year.

Consolidated core gross operating profit

75.8

2.5

Net interest income

53.4

0.6

Fees and commissions

18.4

(0.1)

Other operating profit (Excluding profit on
JGBs and other debt securities)

4.0

2.2

Expenses

44.7

0.6

Consolidated core net operating profit

31.1

1.9

Ordinary profit

27.5

(0.4)

Net income attributable to ownersof the parent

19.0

(0.3)

Review of the 2nd Medium-Term Management Plan
As for the 2nd Medium-Term Management Plan, which began in April 2023, we engage in four basic strategies of “Transformation
Strategy,” “Human Innovation Strategy,” “Customer-First Marketing Strategy,” and “Region-Producing Strategy.” under the theme of“Staying Ahead of the Curve to Always Serve the Region: First Stage.”
As a result of activities during the first year of the 2nd Medium-Term Management Plan, consolidated net income increased for thesixth consecutive term and consolidated capital adequacy ratio grew to 10.81%, both figures showing solid progress toward thenumerical targets for FY2027.
Profitability

Efficiency

Fiscal integrity

Consolidated net income

Consolidated ROE

Numerical target for FY2027¥20.0 billion or higher

5% or higher

50% range

11% or higher

Results for FY2023 (first year of the plan)¥19.3 billion

4.62%

60.20%

10.81%

Consolidated adjusted OHR Consolidated capital adequacy ratio

16

Shareholder Returns

Initiatives for Enhancing Corporate Value

In order to further enhance the return of profits to shareholders, we havechanged our shareholder return policy from a “total payout ratio of 25% orhigher” to a “dividend payout ratio of 30% or higher,” and since the March2024 term, the Company has determined that shareholder returns will aim toachieve a dividend payout ratio of 30% or higher.
In FY2023, based on this approach, the Company paid an annual dividend of¥160 per share, an increase of ¥30 from the previous fiscal year.

Trends in PBR and ROE
While PBR was low amid increasing headwinds in the financial
business environment since the introduction of negative interest
rates, the Company has been working to improve profitability andreform its cost structure through expansion of business areas,collaborations and joint ventures with different industries andother measures.
In addition to the recent improvement in ROE, PBR improved
significantly in FY2023, partially due to rising expectations ofimproved earnings for the financial industry.

Shareholder returns

Total payout ratio: 25% or higher

Beforechange(Total payout ratio: dividends + share buybacks)

Dividend payout ratiao: 30% or higher

Afterchange(Dividend payout ratio: dividends only)*Effective from the March 2024 term

Total dividends (Millions of Yen)

Total dividends (Millions of Yen)

Total payout ratio (%)

Acquisition of own shares (Millions of Yen)

Dividend payout ratio (%)

InterimEnd-of-year(Unit: Yen)

37.5

PBR

32.3

31.6

26.0

25.7

1,111

1,111

ROE
(%)

(Times)

0.40

0.40

4.73
4.36

24.5

23.2

4.69

22.8

30.1

3.65
0.23

0.26
0.20

0.21

3.00

0.22

2.94

3.05

2,615

2,989

3,363

19/3

20/3

21/3

4,453

22/3

70
5,839

4,783

23/3

24/3

(*) Paid by The Juroku Bank before the interim dividends of the March 2022 term

17/3

18/3

19/3

20/3

21/3

22/3

23/3

24/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3

120

1,422

3.98

0.31

160

90

80

130
90
70

70

35

45

55

35

35

35

50

60

70

19/3

20/3

21/3

22/3

23/3

24/3

(*) Paid by The Juroku Bank before the interim dividends of the March 2022 term

24/3(*) Figures prior to the second quarter of the March 2022 term are based on the consolidated financial results of The Juroku Bank Group, the parent company of which is Juroku Bank

Reduction Policy of Cross-shareholdings
Approach to Improving PBRAiming to further increase corporate value, the Group is implementing initiatives to improve PBR, leading to “sustainableprofit growth,” “increasing ROE,” and “reduction of cost of equity” based on the logic tree.
Sustainableprofit growth

Achieving Long-TermVision /Medium-Term Management Plan

Improve PBR (Enhance corporate value)

Top-line growthInterest income/expenses on loans and deposits increased by ¥0.5 billion year on year
Individual-related and corporate-related revenues increased ¥0.3 billion year on year

Cost control

Strongly promoted DX within the Company by introducing GWS, etc.
Ratio of non-performing loans at 1.27%, a record low

Optimal asset
allocation

Increase in loan balance
Reduced cross-shareholdings by ¥2.7 billion

Optimal capital
allocation

Implemented aggressive DX investment and human capital investment(including wage increases)
Achieved profit increase through improvement of Group profitability

Enhanced
shareholder returns

Changed dividend policy to a dividend payout ratio of 30% or higher
Increased dividends for the fifth consecutive term and implemented
share buybacks for the third consecutive term

Lower performancevolatility

Established NOBUNAGA Succession
New Collaboration with Resona Group

Enhancing profitability(RORA improvement)

Net income
Increase ROE
Net income
Shareholders’ equity

Cross-shareholdings (book value basis and market value basis)

Risk assets

Controlling capital
adequacy levels

Risk assets
Shareholders’ equity

Enhancing information
disclosure including
non-fiscal information

Reduction of
cost of equity
Promoting enhanced IR activities

17

Steady progress in the 2nd Medium-Term Management Plan,
with improving profitability, efficiency, and fiscal integrity

The Group’s reduction policy of cross-shareholdings is to aim to reduce the book value of cross-shareholdings by approx. 25%
in five years from the end of September 2022 as base point.
The book value of cross-shareholdings steadily decreased to \42.1 billion as of March 31, 2024, a reduction of \4.2 billion
on a cumulative basis from the base point, representing a progress rate of 36.7%.
Going forward, we will continue to promote dialogue with all customers who hold listed cross-shareholdings, aligning withthe purpose of the Corporate Governance Code, and will continue to reduce our cross-shareholdings, taking into consideration
the environment surrounding each of them.

Advanced sustainability
management

Steady progress on sustainability KPIs thanks to collaboration among
Group companies through working group meetings and other means

Enhanced quality/
quantity of dialogues withshareholders and investors

Enhanced disclosure of non-fiscal information on sustainability,
human capital investment, etc.

Proactive messages fromtop management

Held briefings by top management to disseminate management
strategies in June 2023 (66 participants), December 2023
(75 participants), and May 2024 (92 participants)

JUROKU Financial Group ANNUAL REPORT 2024

81
71

1,711
68

Book value basis (Billions of Yen)
*Excluding deemed holdings of equity securities

Market value basis (Billions of Yen)
*Excluding deemed holdings of equity securities

Number of listed shares

1,202

1,154
464

22/9
Base point

448

23/3

¥4.2 billion
reduction fromthe base point

421

24/3

Reduction policy

25% reduction fromthe end of September 2022

349

Reduction policy
Aiming to reduce thebook value ofcross-shareholdings byapprox. 25% in five years
from the end of September
2022 as base point

28/3
Forecast

18

History of Juroku

2020

February: Enacted The Juroku Bank Group SDGs Declaration
April:
Launch of The Juroku Bank 15th Medium-Term
Management Plan
2021

Since our establishment as the 16th National Bank in October 1877, Juroku Bank has grown steadily and earned the deep trust ofpeople of the local community.
In October 2021, The Juroku Bank established Juroku Financial Group, Inc. for the purpose of transforming its business model to a
provider of comprehensive financial services to the region, and made a transition to a holding company structure. We are contributing
to the sustainable growth of the local community by demonstrating the Group’s comprehensive capabilities and solving problems forcustomers and the local community.
1896

March:

Moved the Head Office to a
newly built building in
Nakatakeyacho, Gifu-shi
December: Changed corporate name to
The Juroku Bank, Ltd.

1977

April 1984

April:

Established ourManagement Policy

Completed construction of the new
Head OfficeJuly:Appointed female employee as Officer
October: 100th anniversary of establishment

September 2012

Merged with The Gifu Bank
June 2013

Established Juroku ResearchInstitute Co., Ltd.
2015

March:March:

Established Bangkok
Representative Office
Established Singapore
Representative Office

Established Juroku Computer Service Co., Ltd.
(current Juroku Densan Digital Service Co., Ltd.)Founded our women’ stable tennis club

October 1897

2010
2022

March:
April:
April:May:

1990

Head Office (Gifu-shi)

March 1975

May:
May:

Establishment of Juroku Foundation
for Regional Promotion

April:

October 2017

140th anniversary of establishment

April:

2018

March:March 1993

Established Shanghai
Representative Office

1970

Fumoto (current Kawaramachi, Gifu-shi)

March:March 1994

Completed construction of
Nagoya Building
August 1982

1900

September 1972

Listed on the First Section of
the Tokyo Stock Exchange

Agreed on a comprehensive
business alliance with Tokai
Tokyo Financial Holdings, Inc.
Established Hanoi
Representative Office

June 2019

Juroku Tokai Tokyo Securities Co., Ltd.
commenced operations

Established Juroku Diamond Credit
Co., Ltd. (currently Juroku Card
Co., Ltd.)

April 1931

Completed construction of the former Head Office

Nagoya Building (Nagoya-shi)

December 2010:
Total deposits of ¥4 trillion

Established as the
16th National Bank

December 2008:
Total loans of ¥3 trillion

September 1987:
Total deposits of ¥2 trillion

November 1989:
Total loans of ¥2 trillion

Former Head Office (Gifu-shi)

November 1983:
Total loans of ¥1 trillion

December 1979:
Total deposits of ¥1 trillion

Meiji

19

TaishoShowa

JUROKU Financial Group ANNUAL REPORT 2024

July:

December 2016:
Total loans of ¥4 trillion

March 1990:
Total deposits of ¥3 trillion

October 1877

April:
April:

December 2012:
Total deposits of ¥5 trillion

Establishment of Basic Policy and Action Guidelines

Hired female
employees forthe first time

April:
April:

Formulated the Long-Term Vision“16Vision-10”
Launch of the 2nd Medium-Term Management
Plan “Staying Ahead of the Curve to Always
Serve the Region: First Stage”
Introduced new HR system
All former The Juroku Bank employees
reassigned to Juroku Financial Group, Inc.
Unified corporate logo
Signed a basic agreement concerning
consideration of joint venture business with
Nihon M&A Center Holdings Inc.
Established NOBUNAGA Succession Inc.

June 2020:
Total deposits of ¥6 trillion

April 1966

February 1907

Launched business of Juroku Densan Digital Service
Co., Ltd.
Established Kanda Machi Okoshi Co., Ltd.
Transferred to the Prime Market of theTokyo Stock Exchange
Commenced collaboration with SoftBank Corp.
to promote DX
Formulated the Sustainability Policy
Set Sustainability KPIs

2023

August 1997

1980

Established Juroku Lease Co., Ltd.

October 2027

Onward to the150th anniversary of
establishment

2020

2000

April 1980

Opened the first branch of Juroku Bankin Fumoto (current Kawaramachi, Gifu-shi)

February: Strategic business alliance withResona Holdings, Inc.
June:
Appointed a female employee tothe position of director.

April:
Established NOBUNAGA Capital Village Co., Ltd.
August: Signed a basic agreement concerning considerationof joint venture business with Densan System
Holdings Co., Ltd.
October: Established Juroku Financial Group, Inc.
October: Enacted the Group Management Philosophy
October: Launch of the 1st Management Plan
October: Enacted the Juroku Financial Group SDGs
Declaration

August 1985

Juroku Bank Head Office after reorganization(while still in Takeyacho)

2024

HeiseiReiwa

20

Source of Value Creation

Strength 3 Solid Customer BaseFinancial CapitalSocial CapitalWith a wide and deep customer base that The Juroku Bank has developed over more than 140 years, coupled with the daily accumulationof information and an extensive personal network, the Group boasts the number one share of deposits and loans in Gifu Prefecture.

Strength 1 Group’s Comprehensive Strength

Intellectual Capital

Since transitioning to a holding company structure, we have been working to expand our business domains by entering new
businesses, strengthening group collaboration, optimizing the allocation of group management resources by reforming the awarenessand behavior of our officers and employees, strengthening auditing and supervision functions, as well as improving the speed ofbusiness execution.
(as of March 31, 2024)

Investment ratio(Financial Group/Bank)

Juroku Financial Group, Inc.

Gifu Prefecture

Aichi Prefecture

55,23751,57542,335

13,86336,573

17,132

100%

Banking service

Juroku Business Service Co., Ltd.

100%

Clerical work service

Juroku Credit Guarantee Co., Ltd.

100%

Credit guaranty service

Juroku Research Institute Co., Ltd.

100%

Survey and research service, business consulting service

Juroku Tokai Tokyo Securities Co., Ltd.

60%

Financial instruments service

Juroku Card Co., Ltd.

100%

Credit card flotation service

Juroku Lease Co., Ltd.

100%

Leasing service

Juroku Densan Digital Service Co., Ltd.

60%

Payments and digital solutions service

The Juroku Bank, Ltd.

Started operations in March 2022

Deposits

Loans

As of March 2013

¥6,440.3 billion

26.6%
23.0%

Loan balance

6.2%
Deposits: 1.8%
Loans:

46,311¥4,870.4 billion

17,34916,621Loans

Deposits:

23,90740,16836,445Loans:

16,512

Share in Aichi Prefecture

20,92015,699Business Lines

47,25014,667

Deposit balance

Share in Gifu Prefecture

Other (Billions of yen)
63,143

Deposits

Loans

As of March 2018(as of March 31, 2024)

Deposits

As of March 2023
(Created by the Company based on data from Monthly Kinyu Journal)

Strength 4 Network

Social Capital

We are building a network centered on Gifu andAichi prefectures and working to solve local issues.
We have representative offices in Shanghai,
Singapore, Bangkok and Hanoi to support ourclients in expanding their businesses overseas.

Chuno region:

Hida region:

14

7

Gifu region:

54

Tono region:

Seino region:

NOBUNAGA Succession Inc.
Established in July 2023

NOBUNAGA Capital Village Co., Ltd.
Established in April 2021

Kanda Machi Okoshi Co., Ltd.
Established in April 2022

60%

Management succession and M&A advisory service

100%

Operation and management of Investment businesslimited partnership

99%

Consulting services related to local revitalization

Number of offices in the three Tokai prefectures
Gifu Prefecture

Aichi Prefecture

Mie Prefecture

103

53

1

12

16
Mie Prefecture:

Nagoya region:

1

22
Mikawa region:

Strength 2 Organization where Every Employee Can Succeed

Human Capital

In line with the implementation of the new human resources system, all Juroku Bank-registered employees were transferred to theCompany, enabling the optimal human resources allocation to group companies, including the bank, and personnel shifts based on
employees’ individuality and talents.
Except for those working at the Company, the transferred employees are currently working actively at various group companies,
including the bank, where they have been seconded.

Juroku Financial Group

Other regions

Thriving at each company as secondees from Juroku Financial GroupTokyo Branch

Shanghai Representative OfficeOsaka Branch

Representative Office Registered in Singapore

Virtual office (3)Bangkok Representative Office

Owari region:

7

24

Hanoi Representative OfficeMarket potential

Employees (seconded to FG group companies)
Change in awareness,and behavior

Juroku Juroku Juroku Juroku JDDS Juroku NOBU NOBU Machi
Bank Lease
TT
Card
RI
Suc.
Cap. Okoshi

JBS

JurokuCreditEmpowerment ofdiverse human resources

Growth throughvoluntary actions

Juroku TT: Juroku Tokai Tokyo Securities, JDDS: Juroku Densan Digital Service, Juroku RI: Juroku Research Institute, NOBU Suc. : NOBUNAGA Succession,
NOBU Cap.: NOBUNAGA Capital Village, Machi Okoshi: Kanda Machi Okoshi, JBS: Juroku Business Service Juroku Credit: Juroku Credit Guarantee

21

JUROKU Financial Group ANNUAL REPORT 2024

Gifu
Prefecture
Aichi
Prefecture

Population(estimate)

Gross prefectural
product

Per capita
prefectural income

Manufacture productshipment amount

New houses
under construction(as of April 2024)(FY2021)(FY2021)(FY2021)(FY2023)

1.91¥8,011.0¥3.09¥6,115.9

9,550

7.46

¥40,586.0¥3.59¥47,894.6

54,685

million people

million people

billionbillionmillionmillionbillionbillionhouseshouses22

Potential of Juroku Financial Group
Growth Strategy through Cross-Industrial Collaboration

Businesses that have a competitive advantage
and can be grown solely by our Group

Prioritized allocation of management resources(maximizing comprehensive financial
service functions)

JurokuTokai Tokyo
Securities

Juroku
Bank

Kanda
Machi
Okoshi

JurokuCard

NOBUNAGA
Succession

JurokuResearch
Institute

JurokuBusiness
ServiceNOBUNAGA
CapitalVillage

Securities

Tokai Tokyo Financial Holdings, Inc.

Digitalization

Densan System Holdings Co., Ltd.

DX

Purpose and objectives of the partnership he Resona Group, which has a solid customer base in the
T
Tokyo metropolitan area and Kansai areas and offers
excellent solutions,. We will receive products and services
from the Resona Group and provide customers in the
Chukyo area, our business areas, with these products andservices that were not previously available in the Chukyoarea, which is our sales area,this area through the Juroku
Financial Group.

Business succession
Retail e will promote this alliance as a pillar of our retailW
strategy while working to further deepen the core businessof the Juroku Bank, the core of our Group.

SoftBank Corp.
Nihon M&A Center Holdings Inc.

Real World

Digital World

Solution services such as business succession/M&A, business matching, syndicatedloans, support for overseas business expansion, sustainable finance, corporate
pensions, real estate utilization, trust services such as inheritance-related services,
asset formation business/fund wrap, and other support for regional revitalization

Strengthening DX/non-face-to-face business for SMEs
and individual customers using banking apps, digitalmarketing, business efficiency improvements, etc.

Resona Holdings, Inc.

Collaboration with SoftBank Corp. – Introduction of Google Workspace –Human Resource Development

Cross-Industrial Collaboration

To promote digital transformation, The Juroku Bank introduced Google Workspace in September 2023 with the full cooperation of
SoftBank Corp., aiming to improve productivity through the new groupware.
We aim to expand its use to all companies in the Group by March 2024, as we take on the challenge of achieving “truetransformation” by innovating communication.
In addition to utilizing Google Meet and other tools for diverse internaland external communication environments, we plan to expand its use tointernal smartphones in the future, and we will work to realize flexible
working styles by utilizing remote work capabilities, such as while out of
the office, on the move, and by utilizing spare time.

Joint hosting of rank-based training programs and various seminars, as well as human resource exchanges, etc.

Release Schedule• Fall 2024: Fund wrap

Asset building segment

Issue

Tokyo area

Cross-Industrial Collaboration (major examples)

Regional comprehensive
financial services group

JurokuCreditGuarantee

Chukyo area

Collaboration and joint ventureswith different industries

Carbon neutral business management
Globalization
Behavioral change
Wage increase

Cross-Industrial Collaboration

On February 7, 2024, we signed a business alliance agreement with Resona Holdings, Inc.
We will cooperate with the Resona Group, whose long-term vision is to be “Retail No. 1,” in both the real and digital worlds,
mutually leveraging information and expertise to further contribute to the local economy and achieve sustainable growth, whileworking together toward shaping a new ideal form for retail banking.
Going forward, while each continues to operate as an independent financial institution, and in light of the sophistication anddiversification of customer needs and changes in the financial market environment, both groups will aim to build a strong
cooperative relationship in digitalization to improve services provided to customers and strengthening business competitiveness, aswell as in regional revitalization of their respective business areas.

Kansai area

Regional/
Business Issues

JurokuLease

Juroku Densan
Digital Service

Businesses for which demand fromthe local community is expected to increase

The rise of AI
Digital transformation (DX)
Low birthrate and aging population
Labor shortages

Strategic Business Alliance with Resona Holdings, Inc. in the Retail Sector

We were using different tools for schedule confirmation andcommunication, which took time and effort.

• Spring 2025: Banking apps
Moneytransfer

Resona Fund Wrap

Loan
All-round type
Office workers

Housewives
Men and women of all ages

Target segmentation

Wealthy/Mass affluent classStudents

Effects

Wealthy class
By standardizing on Google Workspace and incorporating chatand emojis, active and efficient communication was realized.

Juroku Tokai Tokyo Securities

Seniors

Balanceconfirmation

Dominant(retention)

Assetmanagement

Approach to all classes

Google Workspace is a trademark of Google LLC.

23

JUROKU Financial Group ANNUAL REPORT 2024

24

Juroku Financial Group in Figures
Financial Highlights

Non-financial Highlights¥19.3 billion

Consolidated net income:(Billions of yen)

4.62%

Consolidated ROE:
(%)

17.1

18.6

4.73

19.3

CO2 emissions reduction rate

Sustainable finances provided

4.62

42.7%

4.36

14.7
12.8

4,594billion

reduction

3.98
3.65

(FY2023 level compared to FY2013 level)

FY ended
FY ended
FY ended
FY ended
FY ended
March 31, 2020 March 31,2021 March 31,2022 March 31,2023 March 31,2024

60.20%

Consolidated adjusted OHR:(% )FY ended
FY ended
FY ended
FY ended
FY ended
March 31, 2020 March 31,2021 March 31,2022 March 31,2023 March 31,2024(%)

Ratio of female managers*

66.51

10.54

9.1%

403cases

10.81
10.52

68.69

DX-support consultation cases

10.81%

Consolidated capital adequacy ratio:(Cumulative total from April 2022)(as of March 31, 2024)* Branch general managers, local office managers and department heads, and other
employees at equivalent positions(Cumulative total from April 2022)

9.93
58.87

58.90

60.20

Juroku MONEY COLLEGE

Number of applicants to the career-challenge system

9.27

51times
7,136attendees
Held

FY ended
FY ended
FY ended
FY ended
FY ended
March 31, 2020 March 31,2021 March 31,2022 March 31,2023 March 31,2024¥160

OHDividend per share:R:

FY ended
FY ended
FY ended
FY ended
FY ended
March 31, 2020 March 31,2021 March 31,2022 March 31,2023 March 31,2024(Cumulative total by FY2023)

Rating128

applicants(FY2023)

(Yen)
中間配当

期末配当

160
120

80
45
35

90

70

130
90
70

55
35

50

60

70

FY ended
FY ended
FY ended
FY ended
FY ended
March 31, 2020 March 31,2021 March 31,2022 March 31,2023 March 31,2024

25

JUROKU Financial Group ANNUAL REPORT 2024

Composition of the Board of Directors
Juroku Financial Group

Juroku BankA+A+(Long-term issuer rating)Japan Credit Rating Agency, Ltd. (JCR)(Obtained on December 18, 2023)

Internal Directors:

Support for environmental initiatives

7(male: 6, female: 1)

Outside Directors:(male: 2, female: 2)

4(as of June 30, 2024)

26

Initiatives for Sustainability

Positioning of Major Sustainability Policies
The Group has established the Sustainability Policy as the basic policy for our sustainability-related initiatives and has establishedvarious policies regarding the “environment,” “society,” and “governance.”

Formulation of the Sustainability PolicyGroup Management Philosophy

The Group has formulated the Sustainability Policy as its basic policy for sustainability initiatives.

Sustainability PolicyGroup SDGs Declaration

Sustainability Policy
The Juroku Financial Group recognizes sustainability initiatives to be an
important management challenge. We will strive to solve various social issues
such as climate change through our core business of a “provider ofcomprehensive financial services to the region” and contribute to “achieving
growth and prosperity for our customers and the local community,” which is
our group management philosophy, while aiming at sustainable growth andenhancing the corporate value of the Group.
(*) Definition of sustainability: Creating a society that facilitates the growth and prosperity of customers and local communities, and passing
it over to future generations

Environment

Society

Governance

Environmental Policy

Human Rights Policy(newly established in March 2024)

Code of Ethics(partially amended in March 2024)

Customer-oriented Business
Operation Policy

Basic Policy on
Corporate Governance

Investment and Lending Policy for the Creation of a Sustainable Society(partially amended in March 2024)

Compliance Policy

Procurement Policy (newly established in March 2024)

Procedures for Identifying Materiality

1[Identifying issues]
Identify multiple issues by considering SDGs, ESG(environment, society, governance), regional issues, etc.

Juroku Financial Group

SDGs Declaration
Juroku Financial Group, aiming to fulfill its management philosophy of “achieving growth and prosperity
for our customers and the local community,” is committed to working towards a sustainable society as acomprehensive financial group that builds a future with local communities and achieves sustainablegrowth with local economies.

Governance System for Sustainability
Various sustainability-related initiatives are deliberated at the Sustainability Council, which is chaired by the President.
The content of these deliberations is reported to the Board of Directors at least once every three months, and the Board of
Directors supervises the activities of the Sustainability Council.

Key Challenges (Materiality)2

3[Narrow down the priority issues]

Revitalization of thelocal economy

Narrow down the priority issues based on our management
philosophy, the business areas of each group company, thecharacteristics of the regions that are our operating base,and engagement with stakeholders

We will contribute to the growth of local
companies and revitalization of the local
economies by providing a wide range offinancial services that leverage theGroup’s management resources.

Sustainable developmentof the local community

We will work to create comfortable andappealing communities by utilizing local
resources and collaborating with local
governments to generate new value thatwill benefit future generations.

Empowerment ofdiverse human resources

We will promote diversity and work stylereforms to create workplaces where
diverse human resources can work andperform to their full potential with asense of fulfillment.

Environmental
conservation and climatechange actions

We will work to mitigate environmental
impact conserve the environment, andtake climate change actions by promoting
the adoption of renewable energy throughour business activities.

Advanced governance

We will enhance our governance andcompliance system to establish a soundand highly transparent management
structure.

[Identifying materiality]
Priority issues are grouped and the top five materiality
issues are identified and reported to the Board of Directors

Board of Directors

Creating the future of the region together

ReportSuperviseGroup’s Management Council

Deliberate
InstructSustainability Council
Chair by the President(Administration Office)Sustainability Management Office

Deliberate
ReportReportOverseeJuroku Financial Group

Sustainable BusinessWorking Group

Environmental Conservation
Working GroupD&I Working Group

Climate Change and
TCFD Working Group

Group Companies

27

JUROKU Financial Group ANNUAL REPORT 2024

28

Juroku Financial Group

Initiatives for Sustainability

SDGs Declaration

Juroku Financial Group, aiming to fulfill its management philosophy of “achieving growth and prosperity for our customers and the
local community,” is committed to working toward a sustainable society as a comprehensive financial group that builds a futurewith local communities and achieves sustainable growth with local economies.

Addressing Key Challenges (Materiality)
Initiatives

Key challenges

Revitalizationof the local
economyMain Initiatives

Supporting business foundation and new businessStartup support by NOBUNAGA Capital Village

operations to foster future leaders of the local economy

Collaboration with local VCs and CVCs

Supporting local companies’ core business operations andStartup and venture support through NOBUNAGA21

management succession to contribute to their growth

Support for efforts to solve social and environmental issues

Supporting asset formation to achieve enriched living

New NISA initiatives

Sustainability KPIs
Item

March 2024 results(progress rate) *2*1
Sustainable finances¥2 trillion ¥459.4 billion
provided(including environment- (¥800 billion) (¥170.4 billion)
related finances)

Balance of Group assets
on deposit

Long-term proposals that fit customers’ life plans

Quantitative
target¥550.0 billion ¥463.7 billion

22.9%(21.3%)

84.3%

Business

Business succession seminars

Sustainable
developmentof the local
community

Creating comfortable and appealing communities
Using local resources to create value that will benefit
future generations
Promoting digital transformation of local companies andlocal governments

Supporting local companies’ carbon neutral business

Environmental
conservation andclimate change
actionsmanagement
Implementing initiatives for environmental conservationand environmental impact mitigation
Responding to climate change and disclosing
information in line with TCFDManagement

Building a corporate culture that boasts diversity as a

Empowermentof diversehuman
resources

strengthImplementing work style reform to provide a good worklife balanceCreating workplaces that facilitate the growth of diverse
human resources and empower them omprehensive partnership agreement with Shirakawa Village, Gifu Prefecture,Cfor regional revitalization
Support local businesses using food catalog gifts
Sustainable urban development through Kanda Machiokoshi
DX support consulting by Juroku Densan Digital Services
Initiatives toward cashless payments
Revitalize the local economy through cashless payments
Activities by the Juroku Foundation for Regional Promotion
Host the Economics Koshien Gifu Tournament
Support the promotion of sports
 resentation of case studies at the event commemorating the visit of the CEO ofP
the international environmental NGO CDP to Japan
Decarbonization consultingAwarded the Environment Minister’s Award for Best Practice (regional category)of the Principles for Financial Action for the 21st Century
Support for decarbonization by Juroku Lease
Expand the introduction of CO2-free electricity
Disclosure based on TCFD recommendations
Acquisition of external ESG evaluations
Participation in initiatives
Active appointment of women to managerial positions
New graduate recruitment
Job return system
Active personnel exchanges with different industries
Promotion of paid leave and reduction of overtime work
Promotion of healthy management
Return value to employees/improve financial wellness
Childcare supportHuman resource development policy, in-house environment improvement policy,
and human resource development cycle
Human capital investment by expanding training opportunities
Expansion of the self-development qualification acquisition subsidy system
Development of IT/DX human resources
Skill guidelines
Career challenge system
Expert system

Cybersecurity management system

Advancedgovernance

Advancing corporate governance

Education and training

Strengthening risk management and complianceDialogue with shareholders

Achieving stakeholder engagement

Establishment of the Human Rights Policy
Initiatives in line with the Human Rights Policy*1

Social impact
investments¥2 billion¥0.37 billion

18.5%

*1

DX-support
consultation cases

3,000 cases

403 cases

13.4%

CO2 emissions(vs. FY2013 level)100%
reduction

42.7%
reduction

42.7%

Paper use(vs. FY2019 level)

50%

33.5%

reduction

reduction

Ratio offemale managers

20%

9.1%

45.5%

Ratio of paid leaveclaimed

80%

54.7%

68.3%

8 times

400%

30 times

300%

Initial response training
for emergency
preparedness

Dialogue with investors

No less than
twice a year
No less than
10 times a year

67.0%

*1 Cumulative total from April 2022 *2 Progress rate is calculated by dividing March 2024 results by FY2030 target

29

JUROKU Financial Group ANNUAL REPORT 2024

30

Environmental Conservation and Climate Change Actions
VISION

Working on reducing the environmental impact and helping local companies achievecarbon neutrality in order to build a decarbonized society

Decarbonization consulting
In order to provide one-stop support for customers’ carbon neutral business management, The Juroku Bank is offering the following
support menu through business co-creation with Wastebox Inc., a company with a 10-year record in tracking environmental impacts
and greenhouse gas emissions.

Since August 2021: Carbon Neutral Navigator Supported by WasteBox
Since February 2023: Decarbonization Management Transition Plan review
Since August 2023: Greenhouse gas emissions management system “Trianet Zero”

Key Items

Decarbonization support for local companies

Paper use reduction

CO2 emission reduction

Use of HVs and EVs for sales fleet

Environmental Policy
Basic
Philosophy

Since March 2024:

We ensure that greenhouse gas emissions are calculated and offset appropriately for the products our customers manufactureand sell, and assist in obtaining certification.

Step

1

Step

2

Step

3

The Juroku Financial Group (the corporate group consisting of the Company and its consolidated
subsidiaries) recognizes that making efforts for environmental conservation is a duty that should be
fulfilled by society as a whole. As the responsibility of a good corporate citizen serving the community,
we will contribute to the building of a sustainable society as well as creating corporate value by sincerely
addressing environmental issues through our business activities.
Implement GHG emission
calculation and offset

ActionGuidelines

Carbon offset certification acquisition support

1. We comply with environment-related laws, regulations, agreements, and other rules.
2. Recognizing that the initiative for environmental conservation is one of our management priorities, we
strive to disclose information about our activities.
3. We accurately grasp the impact on the environment of our corporate activities, and strive to reduce theenvironmental impact through energy-saving, resource-saving and other measures.
4. We support customers’ environmental conservation efforts by developing and providing
environmentally friendly financial products and services.
5. Taking a long-term perspective, we promote social contribution activities in collaboration andcooperation with society at large.
6. We conduct awareness raising and education to increase the environmental awareness of each and every
officer and employee.

Supporting Local Companies’ Carbon Neutral Business Management
Presentation of case studies at the event commemorating the visit of the CEO of theinternational environmental NGO CDP to Japan
We presented examples of our corporate initiatives on the theme of “The role offinancial institutions in decarbonization” at the event in Japan commemorating thevisit of Ms. Sherry Madera, CEO of CDP, a non-profit organization that operates a
global environmental information disclosure system for companies, investors, andlocal governments.

Certification
application

Certification label
acquisition and PR

Carbon offset
certified products

Business
matching

Listed clientcompanies

Awarded the Environment Minister’s Award for Best Practice (regional category) of the Principles for
Financial Action for the 21st Century
In recognition of our efforts, such as expanding ourdecarbonization support menu and providing decarbonization
consulting, we were awarded the 2023 Environment Minister’sAward for Best Practice (regional category) of the Principles for
Financial Action for the 21st Century in March 2024.
This award is the highest level given by the Principles for
Financial Action for the 21st Century Secretariat to initiatives thatare in line with the core business of financial institutions, selected
and recognized from those solicited as contributing to the creationof a sustainable society .

Supporting decarbonization by Juroku Lease
As the first regional bank-affiliated lease company to introduce a “Carbon Neutral Program,” we provide one-stop support forvisualizing CO2 emissions reducing CO2 emissions through energy conservation, energy creation, and fuel conversion offsetting
CO2 emissions that cannot be fully reduced.
In addition, we have participated in the Tokyo Stock Exchange’s Carbon Credit Market since December 2023.

Initiatives for Environmental Conservation and Environmental Impact Mitigation
Expanding introduction of CO2-free electricity
From June 2024, the company has switched to CO2-free electricity at 87 branches, two loan service centers, and four training
facilities of The Juroku Bank, the group’s core company, in Gifu Prefecture.
CO2-free electricity has already been introduced at The Juroku Bank’s head office building since November 2021 and The Juroku
Bank’s computer center and administrative center building since October 2023. The proportion of renewable energy in the Group’s
annual electricity consumption is expected to be approximately 60%.

31

JUROKU Financial Group ANNUAL REPORT 2024

32

Environmental Conservation and Climate Change Actions

Responding to business opportunities associated with climate changeWith the transition to a decarbonized society, customer demand for funds is expected to increase, and business restructuring anddemand for new financial instruments and services are expected to grow, creating more business opportunities for the Group. The
Juroku Financial Group will proactively work to provide various financing and solutions utilizing financial and non-financial functions
to solve customers’ problems.

Disclosure Based on TCFD Recommendations<Governance>
Sustainability management structure

Financing to solve environmental issues

Board of Directors

As stated in the Sustainability Policy, the Juroku Financial
ReportSuperviseGroup recognizes sustainability initiatives (e.g. on climate
Group Management Council
change) as an important management challenge. “The Juroku
Financial Group SDGs Declaration” lists “revitalization of the
Sustainability Council Chaired by the President
local economy,” “sustainable development of the local
ReportInstructcommunity,” “environmental conservation and climate change
Sustainability Management Officeactions,” “empowerment of diverse human resources,” and“advanced governance” as key challenges.
ReportOversee
In order to address these challenges appropriately, theSustainable Business
Environmental Conservation
D&I
Climate Change andGroup has set up the Sustainability Council, which is chaired
Working Group
Working Group
Working Group
TCFD Working Group
Response to climate change /Business
CO2 emissions reduction /by the President and consists of Group Management Council
Diversity andDisclosure based on TCFD
opportunity
Environmental
work-style reform
recommendations
initiatives
conservation
members, Division General Managers and the head of the
Sustainability Management Office. The Council generally
meets at least once every 3 months to deliberate key challenges (e.g., drawing up a policy for implementing initiatives on climatechange and other sustainability issues, setting targets and checking progress), and reflects the results to management strategies and risk
management.The content of deliberation at the Council is regularly reported to the Board of Directors at least once every three months
for appropriate supervision.
In addition, four working groups have been established under the Sustainability Council with responsibilities for Sustainable
Business, Environmental Conservation, D&I, and Climate Change and TCFD. The working groups are composed of cross-organizational
members from each Group company, including the executive director in charge, and generally meet at least once a month to discusschallenges that line up with respective responsibilities and report details to the Sustainability Management Office.

Opportunities and risks associated with climate change
The Juroku Financial Group analyses risks and opportunities associated with climate change in the timeframes of “short term,” “midterm” and “long term.” The results of analyzing scenarios are used to organize active dialogue (Engagement) for supporting customers
who are working toward a decarbonized society, and reinforce financial support in the forms of sustainable financing and transition
financing to create business opportunities and reduce risks.

Opportunity

Main opportunities and risks

Timeframe

Products and services

Increase in business opportunities (e.g. offering investments, loans and consultation services to help Short- to long-term
customers transition to a decarbonized society)
Increases in public works projects for disaster management and the demand for customers’ capital Mid- to long-term
investment fundResource efficiency
Energy sources

Reduction in business costs through resource-saving, energy-saving, and new technology utilization

Increase in collaborative system development efforts with local governments and other organizations on
disaster preparedness/mitigation to strengthen local resilience
Enhancement in corporate value by appropriately implementing and disclosing climate change initiatives
Deterioration in customers’ business performance associated with an increase and intensification in theseverity of abnormal weather, and degradation in loan asset value resulting from damage to collateral value
Acute risks
PhysicalWork suspension occurring as a result of emergencies affecting the Group’s sites or officers and employees
Degradation in loan asset value resulting from damage to collateral value; deterioration in customers’risksbusiness performance resulting from such factors as changes in precipitation and weather patterns, as well
Chronic risks
as higher average temperatures and sea levels
Degradation in loan asset value resulting from deterioration in customers’ business performance, associated
Policy / Law
with such factors as climate change policies and regulatory reinforcements
Degradation in loan asset value resulting from deterioration in customer’s business performance, associatedTransitional Technologies
with failure to invest in and the transition costs for low-carbon technologies
Degradation in loan asset value resulting from deterioration in customer’s business performance, associatedrisksMarketwith such factors as changes in consumer behavior and rising raw material costs
Degradation in corporate value resulting from slow implementation and disclosure of appropriate climateReputation
related initiatives*Short-term = Around 5 years; Medium-term = Around 10 years; Long-term = Around 30 years

Risk

Resilience

33

Green loan and green private placement bond
These financing products limit the use of funds to those that contribute to solving environmental issues, such as the introduction of renewable energy
generation facilities or the switch to highly energy-efficient equipment. The scheme of obtaining a second opinion from an external organization allows
the company to communicate its environmental initiatives to society and stakeholders.

Sustainability linked loan
This financing product sets sustainability performance targets (SPTs), which are business goals related to SDGs and ESG, and offers preferential interest
rates and other loan terms based on the degree to which the SPTs are achieved. We support our customers’ efforts for carbon-neutral business
management by setting greenhouse gas emission reduction targets consistent with the levels required by the Paris Agreement.

Positive impact financeThis financing product comprehensively analyzes and evaluates the impact of corporate activities on either environmental, social, or economic aspects,
and establishes KPIs that contribute to creating positive impact and reducing negative impact. We continue to support our customers’ efforts throughmonitoring of KPI achievement.

Supporting local companies to achieve carbon neutrality<Strategy>

Assessment item

We offer a full range of financing products to meet our customers’ financing needs for carbon-neutral business management and green initiatives.

JUROKU Financial Group ANNUAL REPORT 2024

Short- to long-term

We support carbon management by providing consultation services to help customers visualize their greenhouse gas emissions and set
reduction targets.
Since the service was launched in August 2021, we have provided decarbonization consultation services to 217 companies.We are also
working to support our customers in obtaining SBT certification (for SMEs), and 154 companies have been certified with the support of Juroku
Financial Group.

Offering

FY2021

Decarbonization consultation

47 cases

91 cases

79 cases

217 cases

SBT certification support

2 cases

43 cases

43 cases

154 cases

Decarbonization
consultation

Identifying
the status quo
Identifying
Scope 1 and 2
emissionsShort- to long-term
Short- to long-term
Short- to long-term
Short- to long-termMid- to long-term

FY2022

Properly disclosing
progress annually

Reducing/
Disclosing

Management integrated
emissions reduction/
disclosure activity

FY2023

Total

Identifying the damage businessactivities have done to the planet, using
an international standard called theGreenhouse Gas Protocol

Setting thetargetSetting SBT
standard reduction
targetSetting targets(SBTi)

Mid- to long-termMid- to long-termMid- to long-term

Furthermore, we have built a continuous support system to help our customers achieve decarbonization management, including helping them
prepare decarbonization management transition plans and providing a system environment for calculating emissions.

Short- to long-term

34

Environmental Conservation and Climate Change Actions

Transitional risks
Following a qualitative analysis of sectors with large credit exposure and the carbon-related sectors defined in the TCFD recommendations, we haveidentified the “electric power sector” and “automotive sector” as sectors of significant transitional risks for the Group.

Examples of risks associated with climate change
The Juroku Financial Group organizes climate change risk into four categories. For physical and transitional risks arising from climatechange, the following examples are assumed.
Risk
category

Examples of physicalrisks

Definition

Risk of incurring losses due to the decrease orloss of asset value including off-balance assets

Credit risk caused by deterioration of customers’
financial condition

Risk of incurring losses from the fluctuationof the value of assets and liabilities(including off-balance assets and liabilities),
as a result of changes in various market risk
Market risk factors such as interest rates, foreignexchange rates, and stocks, as well as the riskof incurring losses due to fluctuations in theincome generated from assets and liabilities
Risk of incurring losses due to difficulties insecuring necessary funds or being forced toraise funds at significantly higher interest
rates than usual because of a mismatch
Liquidity between investment and financing periods or
unexpected outflow of funds as well as risk ofrisk
incurring losses due to the inability to tradein the market or being forced to trade at asignificantly unfavorable price than usual
because of market disruption

Operational Risk of incurring losses due to inappropriate
business processes, activities of officers andrisk
employees, or systems, or external events

Timeframe

Deterioration in customers’
business performance associatedwith an increase andintensification in the severity ofabnormal weather, anddegradation in loan asset value
resulting from damage tocollateral value

Short- tolong-term

Deterioration in investee
companies’ business performancedue to increased and more severe
extreme weather events, causing adecline in prices of securities
holdings

Deposit outflows due to theoccurrence of demand for funds
from customers affected byextreme weather events

Short- tolong-term

Short- tolong-term

Work suspension occurring as aresult of emergencies affecting theGroup’s sites or officers andemployees

Short- tolong-term

Examples of transitionalrisks
Degradation in loan asset value
resulting from deterioration incustomers’ business performance,
associated with such factors as
climate change regulatory
reinforcements, failed investment
in low-carbon technologies, andchanges in consumer behaviors
Deterioration in investee
companies’ business performancedue to climate-related regulationtightening, failed investment in
low-carbon technologies, andchanges in consumer behaviors,
causing a decline in prices of
securities holdings
Deterioration in the financing
environment and outflow ofdeposits due to deterioration in
the Group’s creditworthinessresulting from delays inaddressing climate change risk

Losses from fines and lawsuits due
to inappropriate responses toclimate change, etc.

Timeframe

In terms of transitional risks, on the premise of the RCP2.6 scenario (2 °C scenario) and NZE scenario (1.5 °C scenario), we calculated theimpact on the Group’s credit-related costs in view of the increased cost of transition into a decarbonized society such as the introduction of the
carbon tax, a decline of net sales and future market trends. The result points to a cost increase of approx. 2.5 billion yen.

Analysis results are calculated under specific preconditions.
The impact on the Group’s finances has been found to be limited within the scope of this analysis, but we will continue toenhance the scenario analysis.

Mid- tolong-term

Carbon-related assets
For carbon-related assets for which the TCFD recommendations recommend disclosure, the following table shows the loan balance bysector and the percentage of total sector loans.
Short- tolong-term

Short- tolong-term

Ratio of carbon-related assets against theloan balance(as of the end of March 2023)*L oan balance = Total of loans, foreign exchange,
acceptance and guarantee, etc.
*Electric power & utilities sector excludes the water andrenewable energy power sectors

Short- tolong-term

SectorLoan balance (Millions of Yen)

Ratio

Oil & gas

36,562

0.7%

Electric power & utilities

45,424

0.9%

Air transportation

17,0380.3%

Marine transportation

3,091

0.1%

Land transportation

105,679

2.1%

Automotive

78,241

1.6%

Metals & mining

96,3702.0%

Chemicals

24,913

0.5%

Construction materials & capital goods

216,628

4.4%

Real estate management & development

417,768

8.5%

Beverages & food61,552

1.2%

Agriculture

2,674

0.1%

Paper & forestry

Scenario analysis

Total

30,6970.6%

1,136,636

23.0%

The Juroku Financial Group conducts scenario analysis on physical risks and transitional risks in order to identify how climate-relatedrisks would affect the Group.
Physical risks

Transitional risks

Scenario

IPCC/RCP8.5 scenario (4°C scenario)

IPCC/RCP2.6 scenario (2°C scenario)
IEA/NZE scenario (1.5°C scenario)

Risk event

Large-scale flooding

Transition to a decarbonized society

Analysis target

Borrowers in Gifu/Aichi prefectures
Collateral of real estate (buildings) in Gifu/Aichi prefectures(excluding secured home loans)

Electric power sector
Automotive sector

Analysis content

Deterioration of business performance due to customers’
business suspension/stagnation
Damage to the Group’s real estate (buildings) collateral

Deterioration of customers’ business performance due to cost
increase and sales decline

momentum to address climate change, and we have implemented proactive management and risk control measures based on the risk

Analysis period

Up to 2050

Up to 2050

change and decarbonization.

Increase of credit-related costs: Up to approx. ¥7.0 billion

Increase of credit costs: Cumulative total of approx. ¥2.5
billionAnalysis results

Physical risksRain-prone Japan experiences heavy precipitations each year, causing rivers to swell and triggering flooding. In recent years, the number of heavy
localized rainstorms has become more common, causing significant damage to many areas including the Group’s sales territories.
In terms of physical risks, we have anticipated an increase in the frequency of large-scale flooding due to climate change, and calculated theimpact of climate-attributable large flooding in Gifu and Aichi prefectures on the Group’s credit-related costs on the premise of the RCP8.5
scenario (4 °C scenario). The result points to a cost increase of approx. 7.0 billion yen.

JUROKU Financial Group ANNUAL REPORT 2024

Climate change risk identification and assessment process
The Juroku Financial Group considers risks that could have a significant impact on management to be top risks. From the perspectiveof probability and degree of impact, the Board of Directors selects the risk events that may have a significant impact on our financial
year, as top risks. Eleven top risks were selected by the Board of Directors in March 2023, one of which is the risk related to climatechange. The selection was made in light of the increase in extreme weather events and natural disasters and the growing international*IPCC: Intergovernmental Panel on Climate Change*IEA: International Energy Agency

35<Risk Management>

scenario of deteriorating business performance and business model obsolescence of the borrower due to delays in responding to climate

Climate change risk management process
An integrated risk management framework is in place at the Group, categorizing into and managing the Group’s overall financial risks
as “credit risk,” “market risk,” “liquidity risk” and “operational risk.” Climate change risk is recognized as a driver of financial risk, andis managed with the framework for managing risks such as credit and operational risks.
We have also introduced a risk appetite framework (RAF) from the perspective of organically combining earnings, risk, and capital toenhance corporate value through integrated management. With respect to climate change risk, we are working to manage itappropriately, with our Risk Appetite Policy stating that we will deepen our efforts and promote engagement.

36

Environmental Conservation and Climate Change Actions
Formulating an investment and lending policy
The Group has the Investment and Lending Policy for the Creation of a Sustainable Society.
Basic policy
Juroku Financial Group (the corporate group consisting of the Company and its consolidated subsidiaries) strives to contributeto medium- to long-term enhancement of corporate value and sustainable growth of customers by vigorously supporting
initiatives to resolve environmental and social issues through investment and lending.
Moreover, the Group strives to mitigate or avert the impact of investment and lending that may pose a significant risk or havea negative impact on the environment and society by subjecting any such investment and lending to meticulous consideration.
Investments and loans prohibited across all sectors
The Group will not invest in or extend loans to companies that are found to be directly or indirectly involved in human rights
violations, such as child labor, forced labor, or human trafficking.

Coal-fired power generation is said to emit more greenhouse gases and harmful substances than other power generation
methods, potentially leading to significant negative impacts on the environment, including climate change and air pollution.
The Group will not invest in or extend loans to projects that involve building new coal-fired thermal power stations or
expanding existing power generation facilities, while taking a prudent approach in considering exceptional cases in responseto emergencies or in projects in line with the Japanese government’s energy policy.

Inhumane
weapons
manufacturing

The Group will not invest in or extend loans to companies that manufacture weapons, regardless of fund usage, in view of theinhumane nature of cluster bombs, anti-personnel landmines, and biological/chemical weapons.

Palm oilplantation
development

While palm oil is a crucial raw material used in products essential to everyday life, the development of palm oil plantations
can have negative impacts on climate change, local residents and communities, and ecosystems, and may also lead to humanrights violations such as illegal logging and child labor.
For investments or loans related to palm oil plantation development, the Group will carefully consider the impact on thelocal economy and the environment, after assessing the clients’ efforts to address environmental and social concerns.

Deforestation

Large-scale deforestation could potentially have major negative impacts on climate change, local residents and communities,
as well as ecosystems.
The Group will not invest in or extend loans to projects that involve large-scale deforestation, illegal logging, or forest
incineration. Moreover, investment and loans where the funds are used for operations that involve deforestation will beconsidered carefully in view of their impact on the local economy and the environment.

<Metrics and targets>
CO2 emissions results (t-CO2)
Calculation item

FY2023

Direct emissions

1,488

1,347

Scope 2

Indirect emissions

6,020

6,153

7,508

7,500

Category 1

Purchased goods and services

14,234

14,761Category 2

Capital goods

3,976

7,199

Category 3

Fuel- and energy-related activities not included in Scope 1 and 2

1,536

1,467

Category 4

Upstream transportation and distribution

1,839

1,857

Category 5
Category 6
Category 7

Waste generated in operations
Business travel
Employee commuting

64
192
3,193

50
236
2,940

With regard to CO2 emissions generated by the Group’s energy use (Scope 1 and 2), the Group originally set the goal to “halve CO2
emissions by FY2030 from the FY2013 level and achieve carbon neutrality by FY2050.” However, in September 2023, we revised
this target upward to achieve carbon neutrality by FY2030.

Achieve carbon neutrality by FY2023

CO2 emissions (Scope 1 and 2)(t-CO2)

14,00013,00012,00011,00010,000
9,000
8,000
7,000
6,000
5,000
4,000

13,11012,892
12,218

11,873

11,733

10,809
9,836

Preliminary figures

9,452(42.7%)
7,879

7,508

7,500
Carbonneutrality

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2030TargetFY2023CO2 emissions in FY2023 were reduced by 42.7% compared to FY2013. By switching to LED lighting in stores and upgrading tohigh-performance air conditioning equipment, we were able to reduce electricity consumption by 3.5% compared to the previous
fiscal year. In addition to The Juroku Bank’s head office building, we have also introduced CO2-free electricity at The Juroku
Bank’s computer center building and administrative center building, as we strive to increase our renewable energy ratio. However,CO2 emissions only decreased slightly compared to the previous fiscal year due to an increase in the electricity emission factor (avalue published by electric power companies that indicates the amount of CO2 emissions per kWh of electricity used). We willcontinue to work toward reducing CO2 emissions by considering measures such as expanding the introduction of CO2-freeelectricity, introducing environmentally friendly stores, and converting our company vehicles to hybrid vehicles (HVs) and electricvehicles (EVs).

Roadmap to carbon neutrality
The roadmap for carbon neutrality is as follows. We will promote various measures to achieve carbon neutrality by FY2030.
FY2023
Scope1

FY2024FY2025

FY2026FY2027

FY2028FY2029FY2030Switching company vehicles to eco-friendly vehicles (from gasoline-powered vehicles to HVs and EVs)

Category 8

Upstream leased assets——

Implementing energy-saving measures (switching to LED lighting in stores, upgrading air conditioning equipment)

Category 9

Downstream transportation and distribution——

Category 10

Processing of sold products——

Converting our own contracted electricity to renewable energy (gradually expanding the number of locations where it is introduced)*

Category 11

Use of sold products——

Category 12

End-of-life treatment of sold products——

Category 13

Downstream leased assets

426

428

Category 14

Franchises——

Category 15

Investment (listed equity securities and Japanese corporate bonds)
Investment (business loans)

Total of Scope 3

37

FY2022

Scope 1
Total of Scope 1 and 2

Scope 3

Juroku Financial Group’s CO2 emissions reduction targets and results

TargetSector-specific policies
Coal-fired
thermal power
generation

For the emissions results for FY2022, we obtained independent third-party assurance for all Scope 1, 2 and 3 emissions to ensure
the reliability of the values, and have revised the figures from the previously published preliminary figures to the finalized values
for which assurance was obtained. The FY2023 results are preliminary figures, and we plan to obtain independent third party
assurance for those results.
With regard to Scope 3 Category 15 emissions, from FY2023, calculations are made for listed equity and corporate bonds, inaddition to business loans. Also, the emission factors used have been changed from FY2023 in accordance with therecommendations on emission factors published by PCAF. If the same emission factors are used as in FY2022, the emissions related
to business loans in FY2023 would be 7,994,579 t-CO2.

JUROKU Financial Group ANNUAL REPORT 2024—

353,201

9,011,285

3,153,964

9,036,745

3,536,103

Scope2

Planning and implementing environmentally friendly store introduction (achieving ZEB standards when relocating or rebuilding of sales offices)
Planning and implementing solar power generation equipment installation
Planning and implementing the use of PPA (on-site and off-site)

Carbon offset

Considering and implementing carbon offset introduction*We introduced renewable energy at The Juroku Bank's head office building in November 2021, at The Juroku Bank's computer center and administrative center building in
October 2023, and at 87 branches of The Juroku Bank and others in Gifu Prefecture in June 2024.

38

Environmental Conservation and Climate Change Actions<ESG-related External Evaluation>

Calculation of the CO2 emissions of investees and borrowers (scope 3 category 15)
Since indirect emissions (Scope 3 Category 15) through investments and loans account for a large share of CO2 emissions of financial
institutions, it is important to promote efforts to calculate, monitor, and reduce these emissions. The Group utilizes the PCAF
standard calculation method to calculate CO2 emissions for loans to domestic corporate clients.

CO2 emissions of investees and borrowers (Scope 3)CO2 emissions (t-CO2)
SectorListed equity andcorporate bonds

Oil & gas

Business loans

2,661

463,246

231,236

115,91096

33,287

Marine transportation

1,682

20,507

Land transportation

19,335

190,947

Automotive

8,729

25,626

Metals & mining

8,511

258,512

Electric power & utilities
Air transportation

5,967

99,844

Construction materials &capital goods
Real estate management &development

Chemicals

36,448456,872

330

4,629

Beverages & food

6,277

856,882

022,893459

76,386

Other

31,470528,423

Total applicable assets

353,201

3,153,964

Agriculture
Paper & forestry

Total

applicable assets

Listed equity andcorporate bonds

FTSE Blossom Japan Sector Relative Index

S&P/JPX Carbon Efficient Index

Business loans (loans todomestic corporations)

The Company has been selected as a constituent of the TSE Blossom

The Company has been selected as a constituent of the S&P/JPX

Japan Sector Relative Index.

Carbon Efficient Index.

*Excluding loans to borrowers
with insufficient financial data

The FTSE Blossom Japan Sector Relative Index is one of the ESG

The S&P/JPX Carbon Efficient Index uses the TOPIX, a

indices developed by FTSE Russell, a global index provider. It reflects

representative stock price index that shows trends in the Japanesethe performance of Japanese companies that excel in responding tomarket, as its universe. It determines the weighting of constituent

environmental, social and governance (ESG) issues within each sector.

stocks by focusing on the disclosure of environmental information andCO2 emissions = (Emissions of each borrower x Contributionof the Group’s loans)
CO2 emissions
calculation method

Data quality score3,507,165

the level of carbon efficiency.

<Participation in Environmental Initiatives>

Investment and loan balance
As of March 31, 2024
Financial and emissions data of investment and loan
recipients
Latest financial period data held by the Group as ofMarch 31, 2024

Reference date

Coverage* Emissions of each investment and loan recipient are calculatedusing Scope 1 and 2 data disclosed by the companies. When data isunavailable, estimates are made using the emission factors per unitof sales by developed country and sector from the PCAF database.
* Contribution ratio = The Group’s investment and loan balance /The investment and loan recipients total funding

1.5

3.6

90.1%
(Listed equity and bonds ofcalculation targets / Total oflisted equity andcorporatebonds)

98.0%(Loan balance of thecalculation target / Total loanbalance)

CDP Climate Change Program

Task Force on Climate-Related Financial Disclosures

We have received a “B” rating from CDP 2023, an international

In March 2022, we endorsed the Task Force on Climate-related

environmental non-profit organization that evaluates companies’

Financial Disclosures and are working to disclose climate-related risks

initiatives to address environmental issues. A “B” rating is the third-

and opportunities.

highest out of a total of eight ranks.

We will continue to work toward expanding the scope of CO2 emissions calculation and improving the data quality score.
The results of this calculation may change significantly in the future due to clarification of international standards, sophisticationof estimation, and other factors.

PCAF

Sustainable finance targets
The following targets are set on sustainable finances in order to support, through our core business, customers’ initiatives for solving
environmental issues and to contribute to achieving a decarbonized society.
Target amount for FY2030(cumulative for 9 years)

Sustainable finances providedof which, environment-related finances

Amount provided in FY2022

Progress rate

¥2 trillion¥459.4 billion

22.9%¥800 billion¥170.4 billion

21.3%

In March 2023, we joined the Partnership for Carbon Accounting

Principles for Financial Action Towards a
Sustainable Society

Financials (PCAF), an international initiative launched with the aim of

We have signed the Principles for Financial Action Towards a

standardizing the measurement and disclosure of greenhouse gas

Sustainable Society, led by the Ministry of the Environment. Throughemissions from recipients of investments and loans. We use thethe creation of a positive impact on the environment, society, andknowledge and database provided by PCAF to measure and disclose

economy, and supporting problem-solving efforts, we will fulfill our

the GHG emissions of investment and loan recipients.

responsibilities and roles necessary to creating a sustainable society.

GX League

Nature-related Financial Disclosure Task Force ForumIn April 2024, we participated in the GX League announced by the

In April 2024, we endorsed the efforts of the Taskforce on Nature-

Ministry of Economy, Trade and Industry.

related Financial Disclosures (TNFD) and participated in the TNFD

We support the GX League’s goal of achieving carbon neutrality by

Forum. Through our participation in the TNFD Forum, we will2050 in collaboration with government and academia, and we willcontribute to building a framework for disclosing nature-related

strengthen various initiatives aimed at carbon neutrality.

financial information.

Sustainable finances: investment and lending for SDGs / ESG initiatives that contribute to building a sustainable society
Environment-related finances: investment and lending for initiatives to reduce environmental impact

39

JUROKU Financial Group ANNUAL REPORT 2024

40

Initiatives to respect human rights
Establishment of the Human Rights Policy
As awareness of human rights grows both domestically and internationally, we established our Human Rights Policy in March 2024
in accordance with the International Bill of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work,and the Guiding Principles on Business and Human Rights.
This policy applies to all officers and employees of Juroku Financial Group, and we also declare our commitment to respecting thehuman rights of our customers, suppliers, and other stakeholders in line with the spirit of this policy.

Human Rights Policy
Juroku Financial Group (the corporate group consisting of the Company and its consolidated subsidiaries) recognizes that respecting humanrights is an important management task in order for us to “achieve growth and prosperity for our customers and the local community” asstated in our Group Management Philosophy. We have established this Human Rights Policy (hereinafter, “this Policy”) to promote
initiatives to respect human rights in our business activities.
1. Respect for International Norms
Juroku Financial Group complies with laws and regulations applicable in each country and region where it conducts business. With regard
to human rights, we respect international norms such as the International Bill of Human Rights, the ILO Declaration on Fundamental
Principles and Rights at Work, and the Guiding Principles on Business and Human Rights.
2. Scope
This Policy applies to all officers and employees of Juroku Financial Group. We also expect our customers, suppliers, and other stakeholders
to respect human rights in line with the spirit of this Policy.
3. Action Guidelines
Response to officers and Employees
Juroku Financial Group does not tolerate discrimination of any kind based on race, nationality, origin, creed, religion, age, sex, sexual
orientation, gender identity, physical characteristics, disability, or health condition. Likewise, we do not tolerate harassment, including
sexual harassment and abuse of authority, or human rights violations such as forced labor and child labor.
In accordance with the Labor Standards Act and other laws, we strive to prevent excessive work and reduce overtime, provide a healthyand safe working environment for workers, guarantee wages equal to or exceed the legal minimum wage, and respect freedom of associationand the right to collective bargaining. We also work to ensure that each and every employee gains a correct and deeper understanding andawareness of human rights by implementing human rights awareness training.
Response to Customers
Juroku Financial Group respects the human rights of its customers and strives to prevent discriminatory treatment when providing products
and services. We recognize that our business activities, including investments and loans, may cause or contribute to a negative impact onhuman rights, or may be directly related to such impacts through business dealings. In the event of negative impacts on human rights, wewill urge our clients to take appropriate measures and promote initiatives to respect human rights.
Response to Suppliers
Juroku Financial Group urges its suppliers to respect human rights and avoid infringing upon them in order to eliminate any negative
impacts on human rights in its supply chain.
4. Human Rights Due Diligence
Juroku Financial Group strives to prevent or mitigate negative impacts on human rights resulting from its business activities throughhuman rights due diligence.
5. Remedial Action
Juroku Financial Group takes appropriate steps to provide remedial action in the event it is found that any of its officers and employees or
the products or services it provides have caused or contributed to a negative impact on human rights, or are directly related to such impact
through business dealings.
We accept human rights consultations from customers and other stakeholders via telephone and our website. For officers and employees, weestablish whistleblowing and consultation channels for issues such as discrimination and harassment, and respond appropriately toanonymous consultations.
6. Governance
Resolutions regarding the establishment and revision of this Policy will be made at meetings of the Board of Directors following
deliberation at the Group Management Meeting.
7. Information Disclosure and Dialogue with Stakeholders
Juroku Financial Group discloses its human rights initiatives on its website and strives to enhance and improve its initiatives to respecthuman rights through dialogue with stakeholders.

41

JUROKU Financial Group ANNUAL REPORT 2024

Initiatives for officers and Employees<Promotion of health management>
In addition to thoroughly enforcing regular health checkups, promoting health initiatives in cooperation with thehealth insurance union, implementing stress checks, and providing mental support through a consultation
services, we are also working to establish set days when employees can leave work on time and encourage the useof vacation days to enrich their leisure time and help them balance work and family life. These initiatives havebeen recognized, and the Company has been certified as a “Certified KENKO Investment for Health Outstanding
Organization (Large Corporation Category)” by the Ministry of Economy, Trade and Industry and the Nippon
Kenko Kaigi.
<Prevention of discrimination and harassment>
Our human rights policy clearly states that we will not tolerate any form of discrimination or harassment, including sexual harassment andabuse of authority. Additionally, our ethical policy is reinforced through training to ensure that each employee fully understands its
importance. We also encourage managers to attend seminars on the theme of LGBTQ+ issues as part of their training to promote
understanding, in order to create a workplace environment that accepts diversity and where everyone can work with peace of mind.
<Promoting the advancement of women>
In order to foster a corporate culture that leverages diversity as a strength, we are actively appointing women to managerial positions, with thegoal of achieving a 20.0% ratio of female managers by FY2030. We also systematically implement human resource development programs forfemale senior employees who are expected to be promoted to managerial positions.
<Human rights awareness training/human rights awareness testing>
We provide human rights awareness training in the course of our rank-based training programs, so that each and every officer and employee canget a deeper and correct understanding and awareness of human rights. Twice a year (in May and November), all employees participate in study
sessions with provided learning materials and take a “human rights awareness test.”<Whistleblowing system/human resources hotline>
Our whistleblowing system serves as a channel for receiving reports and consultations regarding compliance violations, including inappropriate
labor management and harassment, and is designed to ensure the early detection and correction of misconduct. We have consultation services
not only within the company but also through an external law firm. The human resources hotline is available for employees to discuss personal
concerns, including work-related issues, interpersonal conflicts, family troubles, financial matters, health issues, and more. Anonymous
consultations are also available.

Initiatives for Customers (individuals)<Customer-oriented business operations>
We have established a Group-wide “Customer Protection Management Policy” and are working across the entire Group to protect ourcustomers and improve their convenience. The Juroku Bank and Juroku TT Securities have formulated and published a “Customer-Oriented
Business Operation Policy” and are working to further improve the quality of their products and services from a customer-oriented perspective.
<Customer information management>
We are fully aware of various risks such as leakage and loss of information to external parties with regard to customer information acquired byeach group company. As such, we have established the “Information Security Management Rules” to ensure proper handling of customer
information, and also disclose a “Personal Information Protection Policy” (Privacy Policy).
<Financial literacy education>
In January 2023, we created Juroku MONEY COLLEGE, a systematic menu on financial literacy. We are working to improve financial literacy
in the local community by leveraging the expertise of each group company and systematically offering seminars on topics such as asset
formation, entrepreneurship, cashless payments, loans, and other topics, targeting a wide range of age groups from elementary school students
to seniors.
<Creating a universal environment>
In recent years, Juroku Bank’s newly built or relocated branches have been designed with the concept of universal design. We are creating anenvironment where customers can use our branches with peace of mind by making them barrier-free, displaying pictograms, and installing
ATMs for the visually impaired.

Initiatives for Investment and Loan Recipients
In March 2024, we revised our “Investment and Lending Policy for the Creation of a Sustainable Society” to state that wewill not invest in or extend loans to companies that are found to be directly or indirectly involved in human rights
violations, such as child labor, forced labor, or human trafficking, across all sectors. In the future, we will consider how to
inform investment and loan recipients and reflect this information in our credit decisions.
Please refer to our website for details on Juroku Financial Group’s investment and loan policies.
https://www.16fg.co.jp/syakaikeisei.html (in Japanese only)

Initiatives for Suppliers
We established a “Procurement Policy” in March 2024, which stipulates our basic approach to respecting human rights in
our procurement activities and our expectations of suppliers. In the future, we will consider ways to inform this tosuppliers and methods for their selection.
Please refer to our website for details on Juroku Financial Group’s Procurement Policy.
https://www.16fg.co.jp/choutatsu.html (in Japanese only)42Corporate Governance

Activities and Composition of the Board of Directors

Basic Concept
The Company and its subsidiaries (hereinafter the “Group”) shall, under the “group management philosophy” representing theGroup’s fundamental spirit that guides all officers and employees, serve our customers and local communities as an entity essential
to their welfare based on our hitherto earned tradition and trust, thereby contributing to materializing sustainable growth andaffluent future. Meanwhile, we have formulated our long-term vision as guidance for the future group management in the belief
that it is essential to envision the desirable shape of our future based on such management philosophy and to proactively reform
ourselves toward materializing such future.

Corporate Governance System

Accounting Auditor

Juroku Financial Group is a company with an Audit & Supervisory Committee, and the functions of the Board of Directors arestrengthened not only in its decision-making functions but also in its auditing and supervisory functions.
By separately electing Executive Directors and Directors who are Members of the Audit & Supervisory Committee, we have enhanced
the audit system of Group-wide business
Shareholders Meeting
Election / Dismissal
management and the supervision system ofElection / Dismissal
Juroku Financial Group
Executive Directors by Members of the
AdviceManagement Advisory
Collaboration
Audit & Supervisory Committee.
& Supervisory
Board
Board of Directors AuditCommittee
Personnel Affairs
Counseling
In addition, we are working to further
Committee
Compensation
Committee
enhance our corporate governance system
Audit & Supervisory
Group Management
Committee’s OfficeCouncilby monitoring the status of businessDirectAudit
Order
Collaboration
Group Risk Compliance Meeting
execution, the status of risk management,
Reportand the compliance system of group
Audit
companies, and striving to build a GroupCollaboration
Group Administration
Group Corporate
Group DX
Group Risk
Group Sales
Group Management
Sustainability
Management
Division
Planning
DivisionManagement
DivisionManagement
DivisionManagement
Division
Audit Division
wide business management system.
Management OfficeGroup companies are striving for
Instruct / Manage
Report / Discuss
Audit
efficient business operations by preparing
Group companies
business plans based on Group-wide
The Juroku Bank
Other subsidiaries
Audit
management policies, and by making
Juroku Research Institute, Juroku TT Securities, Juroku Card, Juroku Lease
Instruct / Manage
Report / Discuss
Juroku Densan Digital Service, NOBUNAGA Succession
prompt management decisions and
NOBUNAGA Capital Village, Kanda Machi Okoshi
Subsidiaries of The Juroku Bank
Juroku Business Service, Juroku Credit Guarantee
speeding up business execution.

Composition of the Board of Directors
The Group strives to ensure that the Board of Directors has a well-balanced structure with diverse knowledge and expertise.
In order to enhance the objectivity and rationality of decision-making by the Board of Directors in addition to supervising
management, we appoint Independent Outside Directors so that they consist of more than one-third of the total number of Directors.
Incidentally, the Company appointed in June 2024 the first female internal Director in its history.

(as of June 30, 2024)

Internal Directors

Outside Directors

Ratio of Outside
Directors of
all Directors

Ratio offemale Directors

36.3%

37.2%

Outside Director

43

JUROKU Financial Group ANNUAL REPORT 2024

4/11 Directors

Female Directors

The Board of Directors deliberates and decides on the matters as
required by laws and regulations as well as important managementrelated matters, while Executive Directors report to the Board of
Directors regarding the status of execution of their duties at least
once in three months pursuant to Article 363, Paragraph 2 of theCompanies Act, ensuring the Board’s supervision of execution of
Directors’ duties.
The meetings of the Board of Directors held in FY2023 (11meetings) debated and deliberated in particular on the subjects
concerning capital policy and shareholder return policy (at themeetings held in May, June, October, December 2023 and March
2024), the initiatives for sustainability (at the meetings held in
July 2023 and March 2024), and the financial results as well as the
progress in achieving budget (at the meetings held in April, July,
November 2023 and January 2024).
Attendance of each Director in FY2023 is as indicated on
the right.

Name

No. ofmeetings held

No. of meetings
attended(attendance ratio)

Yukio Murase11

11 (100%)

Naoki Ikeda

11

11 (100%)

Akihide Ishiguro11

11 (100%)

Yukiyasu Shiraki

11

11 (100%)

Yoshiaki Bito1111 (100%)

Hiroyuki Ota

11

11 (100%)

Satoko Ito

11

11 (100%)

Yasushi Ueda

9

9 (100%)Naohiko Ishikawa

11

11 (100%)

Shinji Ishihara11

11 (100%)

Satoe Tsuge

11

11 (100%)

Management Advisory Board
In order to further ensure transparency and fairness of the Board of
Directors’ decision-making activities, we have established theManagement Advisory Board, which consists of two committees,
the Personnel Affairs Committee and the Compensation Committee,
as an advisory body to the Board of Directors.
Management Advisory Board consists of the Personnel Affairs
Committee and the Compensation Committee that provide advice
on the matters shown in the table on the right.
In FY2023, the Personnel Affairs Committee and theCompensation Committee held two meetings each. In reference toattendance of each committee member, all members attended all
meetings registering 100% attendance ratio.

Personnel Affairs Committee
12Matters concerning the determination of candidates for
Director
Matters concerning selection and dismissal of Executive
Directors, etc.

Compensation Committee
1

Matters concerning compensation for Directors

2

Matters concerning the evaluation of the effectivenessof the Board of Directors

3

Other important matters related to management

Evaluation of the Effectiveness of the Board of Directors
The Company annually conducts self-evaluations and analysis of the effectiveness of the Board of Directors, as a measure for improving
the administration of the Board of Directors. In FY2023, we carried out self-evaluations with the advice from an external institution,
results of which were submitted for a consultation to the Management Advisory Board, an advisory body to the Board of Directors, andthen deliberated at the Board of Directors.
<Method for evaluating the effectiveness of the Board of Directors for FY2023, and the summary of the results of evaluation>(1) Method for evaluating the Board effectiveness•Anonymous questionnaire was conducted for all (11) Directors in March 2024.
•The questionnaire was comprised comprehensively of 31 multiple-choice questions for five grade evaluation as well as nine written-type questions on the composition, administration and other matters regarding the Board of Directors.
(2) Results of analysis
As a result of the analysis and evaluation of the questionnaire, the Company confirmed that the Board of Directors was appropriately
administered and that the overall effectiveness of the Board of Directors has been secured.
All parties concerned shared the determination that the Board of Directors shall, with a view to further strengthening the Board’sfunction and reinvigorating its debate, be engaged in continuous efforts for reviewing the contents and quantity of the reference materials for the Board meetings, and enhancing the opportunities for communication between Internal/Outside Directors and the executive
departments.
We will continue with our efforts to enhance discussions on important management issues for the sustainable growth of the Groupand the enhancement of corporate value over the medium to long term. Furthermore, we will further enhance the effectiveness of theBoard of Directors by continuously reviewing the operation of the Board of Directors with Outside Officers.

3/11 Directors

44

Corporate GovernanceReason for nominating Outside Officers (function and role of Outside Directors in the corporate governance of the Company)
Outside Director

Status of Audit by the Audit & Supervisory Committee
The Audit & Supervisory Committee consists of three Members of the Audit
No. ofNo. ofAttendance
meetings
meetings
Name
Position& Supervisory Committee (one of the three is a full-time Member of the
ratio
held
attended
Audit & Supervisory Committee, as of June 20, 2024), including two
Member of theMembers of the Audit & Supervisory Committee who are Outside Directors,
Audit &
NaohikoSupervisory
and meets once a month in principle. In addition, the Audit & Supervisory
11
11
100%
Ishikawa
Committee
Committee’s Office has been established to assist Members of the Audit &(Full-time)
Supervisory Committee in their duties, thereby ensuring the objective
Member of themonitoring and auditing functions of the management’s business execution.
Audit &
ShinjiSupervisory
11
11
100%
In accordance with the audit policy, audit plan, and allocation of
Ishihara
Committee
duties established by the Audit & Supervisory Committee, the full-time(Outside)
Member of the Audit & Supervisory Committee audits the execution ofMember of the
Audit &
duties by Directors by attending important meetings such as those of
Satoe
Supervisory
11
11
100%
the Board of Directors, Group Management Council, Group Risk
Tsuge
Committee
Compliance Meeting, and Sustainability Council, inspecting important(Outside)
documents, and interviewing Representative Directors and other
Directors. Part-time Outside Members of the Audit & Supervisory Committee communicate and collaborate with the full-time Memberof the Audit & Supervisory Committee to conduct audits based on discussions at Audit & Supervisory Committee meetings and othermeetings. Satoe Tsuge, an Outside Member of the Audit & Supervisory Committee, is qualified as certified public accountant holding
financial and accounting expertise.
The Audit & Supervisory Committee also reviews the status of the development and operation of the internal control system, the decisionon the appointment of Directors other than Members of the Audit & Supervisory Committee, the decision on the compensation of Directors
other than Members of the Audit & Supervisory Committee, the suitability for reappointment of the Accounting Auditor, the agreement on
the amount of compensation for the Accounting Auditor, and prior approval of the non-assurance services by the Accounting Auditor, andexchanges opinions with the internal audit department and the Accounting Auditor in order to enhance the effectiveness of audits.
In FY2023, the Company held 11 meetings of the Audit & Supervisory Committee, and the attendance of individual Members of the
Audit & Supervisory Committee is shown in the above table.

Satoko Ito

Ms. Satoko Ito has extensive experience and knowledge in a wide range of domains such as environment, energy, regional revitalization, ESG andsustainability gained through her career as an anchorperson for news and information programs and a university professor. Although she has not been
involved in corporate management other than through serving as Outside Director or External Corporate Auditor, the Company believes that, by utilizing
her extensive experience and a wide range of knowledge, she will contribute to further ensuring transparency and fairness of the decision-making function
and further strengthening the supervising function of the Board of Directors from an objective standpoint independent from the management team in orderto promote the Group’s sustainable growth and improve its medium- to long-term corporate value, and has nominated her.

Outside Director

Yasushi Ueda

Mr. Yasushi Ueda has been engaged in corporate management as Senior Managing Executive Officer and Group CRO of Meiji Yasuda Life Insurance, and has
gained extensive experience and a wide range of insight in the financial sector, including risk management. The Company believes that, by utilizing his
extensive operational experience and a wide range of knowledge, he will contribute to further ensuring transparency and fairness of the decision-making
function and further strengthening the supervising function of the Board of Directors from an objective standpoint independent from the management teamin order to promote the Group’s sustainable growth and improve its medium- to long-term corporate value, and has nominated him.

Outside Director (Audit & Supervisory Committee Member)

Shinji Ishihara

As a lawyer, Mr. Shinji Ishihara has a wealth of experience and specialized knowledge of legal affairs in general, and has been serving as the managing partnerof Ishihara Law Office since 2011. The Company believes that, by utilizing his extensive experience and a wide range of knowledge, he will contribute tofurther ensuring transparency and fairness of the decision-making function and further strengthening the supervising function of the Board of Directors froman objective standpoint independent from the management team in order to promote the Group’s sustainable growth and improve its medium- to long-term
corporate value, and has nominated him.

Outside Director (Audit & Supervisory Committee Member)

Satoe Tsuge

As a certified public accountant, Ms. Satoe Tsuge has expertise in finance and accounting, and is the representative of Tsuge CPA Office, which wasestablished in 1999, and the representative director of La Vida Planning Co., Ltd., which was established in 2007. The Company believes that, by utilizing
her extensive experience and a wide range of knowledge, she will contribute to further ensuring transparency and fairness of the decision-making function
and further strengthening the supervising function of the Board of Directors from an objective standpoint independent from the management team in orderto promote the Group’s sustainable growth and improve its medium- to long-term corporate value, and has nominated her.

Remuneration for Officers
Remuneration, etc. for Directors of the Company comprises three components that are fixed remuneration, performance-linked remuneration andstock-type remuneration, based on the resolution at the 1st Annual General Meeting of Shareholders held on June 17, 2022. Meanwhile,
remuneration for Outside Directors and Directors who are Members of the Audit & Supervisory Committee consists solely of fixed remuneration
with a view to enhancing their neutrality and independence.

Major skills and experience, etc. of Directors of the Company(including Directors who are Members of the Audit & Supervisory Committee) (skill matrix)(as of June 30, 2024)

Name

Fixed remuneration

Performance-linked remuneration
Performance-linked remuneration is intended to provide incentive for contributing to improving the Group’s business performance for each fiscal year, andis geared to the Group’s bottom line performance criterion, namely, net income attributable to owners of the parent (consolidated). The aggregate amountof performance-linked remuneration for Directors (excluding Outside Directors and Directors who are Members of the Audit & Supervisory Committee)
shall be paid within the ceilings in the table below, apart from the fixed remuneration.
Performance-linked remuneration
Net income attributable to owners of the parent(consolidated)¥4.0 billion or lessCeiling of
remuneration—

Net income attributable to owners of the parent(consolidated)
More than ¥12.0 billion but not exceeding ¥14.0 billion

Ceiling of
remuneration¥70 million

More than ¥4.0 billion but not exceeding ¥6.0 billion¥30 million

More than ¥14.0 billion but not exceeding ¥16.0 billion¥80 million

More than ¥6.0 billion but not exceeding ¥8.0 billion¥40 million

More than ¥16.0 billion but not exceeding ¥18.0 billion¥90 million

More than ¥8.0 billion but not exceeding ¥10.0 billion¥50 million

More than ¥18.0 billion but not exceeding ¥20.0 billion¥100 million

More than ¥10.0 billion but not exceeding ¥12.0 billion¥60 million

More than ¥20.0 billion¥110 million

Stock-type remuneration

The guidelines for the distribution ratio of these three types of remuneration for Directors (excluding Outside Directors and Directors who areMembers of the Audit & Supervisory Committee) shall be 100, 50, and 15 between fixed remuneration, performance-linked remuneration, andstock-type remuneration, respectively (if fully paid as scheduled, and including remuneration from consolidated subsidiaries if involving
concurrent service as Directors at consolidated subsidiaries).

45

JUROKU Financial Group ANNUAL REPORT 2024

Directors who areMembers of the Audit &Supervisory Committee

Restricted stock-type remuneration is intended to provide incentive for continuously enhancing the Company’s corporate value while further promoting
value-sharing between Directors and shareholders, which once a year in principle delivers to Directors restricted shares with transfer restriction period.
Remuneration to be used for delivering restricted shares shall be monetary claims, which shall, in the aggregate but apart from the fixed remuneration andperformance-linked remuneration, not exceed \80 million per year while the total number of shares to be allotted in a year shall not exceed 40,000 shares.

Directors who are not Members of the Audit &Supervisory Committee

The aggregate amount of fixed remuneration for Directors (excluding Directors who are Members of the Audit & Supervisory Committee) payablecommensurate with their roles and responsibilities shall not exceed ¥330 million per year, while the aggregate amount of fixed remuneration for Directors
who are Members of the Audit & Supervisory Committee shall not exceed ¥80 million per year.

Current position at
the Company

Yukio Murase

Chairperson(Representative Director)

Naoki Ikeda

President(Representative Director)

Akihide Ishiguro

Deputy President

Yukiyasu Shiraki

Director and Senior Managing
Executive Officer

Yoshiaki Bito

Director and Managing
Executive Officer

Tomoko Shiozaki

Director andExecutive Officer

Satoko Ito

Director Outside

Yasushi Ueda

Director Outside

Akito Yamashita

Director

Shinji Ishihara

Director Outside

Satoe Tsuge

Director Outside

Major skills and experience, etc. of Directors
Corporate
management

Financing

Finance / Legal affairs /
Local
Risk
Human resources revitalizatio
Accounting
management

ESG / Sustainability*The table does not represent all expertise and experience possessed by each person.

46

Board of Directors and Executive Officers
Directors(Representative Director)
Yukio Murase | Chairperson(and Chairperson of The Juroku Bank)(Representative Director)
Naoki Ikeda | President(and Director of The Juroku Bank)

Apr. 1979 Joined The Juroku Bank
Jun. 1993 General Manager, Hong Kong Branch, The
Juroku Bank
Feb. 1994 General Manager, Nagoya-Ekimae Branch,
The Juroku Bank
Apr. 1998 General Manager, Human Resources
Division, The Juroku Bank
Jun. 2004 Managing Director, The Juroku Bank
Jun. 2009 Senior Managing Director, The Juroku Bank
(Representative Director)
Sep. 2013 President and CEO, The Juroku Bank
(Representative Director)
Jun. 2021 Chairperson and President, The Juroku Bank
(Representative Director)
Oct. 2021 Chairperson, the Company(Representative Director) current position
Chairperson, The Juroku Bank
(Representative Director) current position

President (and President andAkihide Ishiguro | Deputy
CEO of The Juroku Bank)

Apr. 1980 Joined The Juroku Bank
Apr. 2005 General Manager, Takayama Branch, The
Juroku Bank
Jun. 2008 Director and General Manager, Nagoya
Branch, The Juroku Bank
Apr. 2012 Director and General Manager, Nagoya Main
Office, The Juroku Bank
Jun. 2013 Managing Director and General Manager,
Operations Administration Division, The
Juroku Bank
Sep. 2013 Managing Director, The Juroku Bank
Jun. 2014 Deputy President, The Juroku Bank
(Representative Director)
Oct. 2021 President, the Company(Representative Director) current position
Director, The Juroku Bank current position

Yasushi Ueda | Director (Outside)
Apr. 1988 Joined Meiji Life Insurance Company (currently
Meiji Yasuda Life Insurance Company)
Apr. 2013 General Manager, Profit Management &Actuarial Department, Meiji Yasuda Life
Insurance Company (hereinafter “Meiji
Yasuda Life Insurance”)
Apr. 2017 Executive Officer and General Manager,
Profit Management & Actuarial Department,
Meiji Yasuda Life Insurance
Apr. 2018 Executive Officer, Meiji Yasuda Life Insurance
Apr. 2019 Managing Executive Officer, Meiji Yasuda
Life Insurance
Apr. 2020 Managing Executive Officer, Group Chief
Actuary, Meiji Yasuda Life Insurance
Apr. 2021 Managing Executive Officer, Group CRO,
Meiji Yasuda Life Insurance
Jun. 2023 Director, the Company current position
Apr. 2024 Senior Managing Executive Officer,
Group CRO, Meiji Yasuda Life Insurance

Oct. 1989 Started activities as an anchorperson for news
and information programs
Apr. 2010 Visiting Professor, Graduate Institute for
Entrepreneurial Studies current position
Apr. 2015 Part-time Lecturer, Niigata University
current position

Jun. 2020 Director, The Juroku Bank
Oct. 2021 Director, the Company current position

current position

and Senior Managing Executive Officer
Yukiyasu Shiraki | Director(and President of Juroku Lease Co., Ltd.)

Akito Yamashita | Director(Audit & Supervisory Committee Member)

Apr. 1985 Joined The Juroku Bank
Apr. 2010 General Manager, Hashima Branch, The Juroku Bank
Mar. 2012 General Manager, Kakamigahara Branch, The Juroku
Bank
Jun. 2014 Executive Officer and General Manager,
Ichinomiya Branch, The Juroku Bank
Jun. 2016 Managing Executive Officer and Chief General Manager,
Aichi Business Division, The Juroku Bank
Jun. 2017 Director and Managing Executive Officer andChief General Manager, Aichi Business Division,and Deputy Chief General Manager, Business
Integration Division, The Juroku Bank
Apr. 2019 Director and Managing Executive Officer andChief General Manager, Business Integration
Division, The Juroku Bank
Apr. 2021 Director and Managing Executive Officer andChief General Manager, Business Support
Division, The Juroku Bank
Oct. 2021 Director and Senior Managing Executive Officer
and General Manager, Group Sales Management
Division, the Company current position
President, Juroku Lease Co., Ltd. (Representative
Director) current position

Apr. 1988 Joined The Juroku Bank
Jan. 2013 Manager, Corporate Planning Division, The
Juroku Bank
Oct. 2014 Deputy General Manager, Kakamigahara
Branch, The Juroku Bank
Jun. 2016 General Manager, Kurono Branch, The
Juroku Bank
Jan. 2018 General Manager, Seki Branch, The Juroku
Bank
Apr. 2019 General Manager, Okazaki Branch, The
Juroku Bank
Jun. 2019 Executive Officer and General Manager,
Okazaki Branch, The Juroku Bank
Oct. 2020 President (Representative Director), Juroku
Business Service Co., Ltd.
Oct. 2021 Full-time Auditor, The Juroku Bank
Jun. 2024 Director (Member of the Audit & Supervisory
Committee), the Company current position

and Executive Officer (andTomoko Shiozaki | Director
Executive Officer of The Juroku Bank)

Satoe Tsuge | Director(Audit & Supervisory Committee Member, Outside)

Apr. 1987 Joined The Juroku Bank
Jun. 2009 General Manager, Tokai Branch, The Juroku Bank
Oct. 2011 Manager, Human Resources Division, The
Juroku Bank
Apr. 2014 Deputy General Manager, Human Resources
Division, The Juroku Bank
Jun. 2016 General Manager, Corporate Administration
Division, The Juroku Bank
Jun. 2017 Executive Officer and General Manager,
Corporate Administration Division, The
Juroku Bank
Jun. 2018 Director and Executive Officer and General
Manager, Corporate Administration
Division, The Juroku Bank
Jun. 2019 Director and Executive Officer and General
Manager, Corporate Planning Division, The
Juroku Bank
Jun. 2020 Director and Managing Executive Officer,
The Juroku Bank
Oct. 2021 Deputy President, the Company
current position

President and CEO, The Juroku Bank
(Representative Director) current position

and Managing Executive Officer (and Director
Yoshiaki Bito | Director
and Managing Executive Officer of The Juroku Bank)

Satoko Ito | Director (Outside)

Apr. 1995 Joined The Juroku Bank

Apr. 1988 Joined The Juroku Bank
Oct. 2014 Section Manager, Global Business Division,
The Juroku Bank
Jun. 2017 General Manager, Audit & Supervisory Board
Members Office, The Juroku Bank
Apr. 2019 General Manager, Treasury and Investment
Division, The Juroku Bank
Apr. 2021 General Manager, Market Operations
Division, The Juroku Bank
Jul. 2021 Researcher (treatment as General Manager),Internal Audit Division, The Juroku Bank
Oct. 2021 Executive Officer and General Manager, GroupManagement Audit Division, the Company
Jun. 2022 Director and Managing Executive Officer andGeneral Manager, Group Risk Management
Division, the Company current position
Director and Managing Executive Officer,
The Juroku Bank current position(Audit & Supervisory Committee
Shinji Ishihara | Director
Member, Outside)
Apr. 1985 Registered as an attorney-at-law and joined
Ishihara Law Office
Aug. 2011 Managing partner, Ishihara Law Officecurrent position

Apr. 2016 Chairman, Aichi Bar Association andvice chairman, Japan Federation of Bar
Associations
Jun. 2018 Auditor, The Juroku Bank
Oct. 2021 Director (Member of the Audit & Supervisory
Committee), the Company current position

Apr. 1990 Joined Tohmatsu & Co. (currently Deloitte
Touche Tohmatsu LLC) Nagoya OfficeJun. 2017 General Manager, Tarui Branch, The Juroku Bank
Jun. 2018 General Manager, Hoshigaoka Branch, The Juroku
Bank
Apr. 2021 General Manager, SDGs Promotion Office, Regional
Revitalization Division, The Juroku Bank
Oct. 2021 Manager, Group Sales Management Division,
the Company
General Manager, SDGs Promotion Office, Regional
Revitalization Division, The Juroku Bank
Apr. 2022 General Manager, Sustainability Management
Office, the Company
General Manager, Sustainability Promotion
Division, The Juroku Bank
Jun. 2023 Executive Officer and General Manager,
Sustainability Management Office, the Company
Executive Officer and General Manager,
Sustainability Promotion Division, The Juroku
Bank current position
Jun. 2024 Director and Executive Officer and General
Manager, Sustainability Management Office, theCompany current position

Apr. 1995 Registered as a certified public accountant
Jan. 1999 Representative, Tsuge CPA Officecurrent position

Jun. 2007 Representative director, La Vida PlanningCo., Ltd. current position
Oct. 2021 Director (Member of the Audit &Supervisory Committee), the Company
current position

Executive Officers(and Director and Senior

Koichi Tokoro

Managing
Managing Executive Officer of
Executive Officer The Juroku Bank )Eiji Kodama

Managing
Executive Officer of The
Executive Officer Juroku Bank )(and Director and Managing

Tsutomu Niimi

Managing
Executive Officer(and Director and Managing
Executive Officer of The
Juroku Bank )(and Managing Executive Officer

Tomoatsu Kaku

Executive Officer of The Juroku Bank )(and President of NOBUNAGA

Kyohei Tanemura

Executive Officer Juroku Bank )Executive Officer of The
Katsutoshi Hirano Executive Officer (andJuroku Bank )Haruyuki Miyoshi

Executive Officer Juroku Bank )Hirotaka Asai

Executive Officer of The Juroku Bank )Motoyasu Fukui

Executive Officer Succession Inc.)(and Managing Executive Officer(and Executive Officer of The(and Executive Officer of The(as of July 1, 2024)

47

JUROKU Financial Group ANNUAL REPORT 2024

48

Risk Management Structure and Compliance System<Risk Management Structure>

Risk Appetite Framework

Ethics Policy
The Group has established its “ethics policy” with a view to establishing unshakable confidence from society through establishing highbusiness ethics and thorough permeation of the spirit of legal compliance.
The ethics policy consists largely of two sections, namely, “business ethics of the Group” and “code of conduct for officers andemployees of the Group.” The former manifests sense of ethics and values which the Group as a corporation must adhere to formaterializing its management philosophy, while the latter is a compilation of the code which the officers and employees of the Group must
follow in conducting business based on the aforementioned business ethics.

The Group has clarified the type and amount of risk to be taken
appropriately as “risk appetite,” and introduced a “Risk Appetite
Framework (RAF)” for business and risk management using the risk
appetite as a starting point.
In order to achieve our “Vision” in the Group management
philosophy, we seek to “optimize profits, risks and capital” throughRAF management, and enable the pursuit of more profit opportunities
and more appropriate risk control. By doing so, we are improving theeffectiveness of our business strategies including management plans
and comprehensive budgets.

Overview of the Risk Appetite Framework
Management plan
Comprehensive budget, etc.

Risk appetite
Business strategy

Risk management

Group-wide Risk Management Structure and Compliance System
We have established the Group Risk Management Division to oversee risk management and compliance, and are working to improve therisk management structure and compliance system of the Group, while senior management actively involves in the process of risk
management for verifying and monitoring its effectiveness and adequacy.
Specifically, the Group Risk Compliance Meeting chaired by the President has been organized to grasp the status of risk management andcompliance within the Group, engaging in deliberation or debate on the analysis, evaluation, and activities for improvement thereof. Officer incharge of the Group Risk Management Division reports to the Board of Directors on the status of risk management and other matters on abi-annual basis or as appropriate if
Risk management structure / compliance system
required, to ensure that the adequacy
Juroku Financial Groupand effectiveness of risk
Audit & Supervisory
Board of Directors
Committee
Group Risk Compliance Meeting
management as well as status ofGroup Management Council
Group Risk Compliance Committee
compliance system are appropriately
Group Management
Audit Division<Whistleblowing system>
deliberated and verified.
<<Integrated risk management / compliance divisions>>
Audit
Lawyers
Group Risk Management Divisionmonitoring
Participate
Meanwhile, the GroupManagement Audit Division,
Group companies
The Juroku Bank
Integrated Risk Management Meeting
which is the internal audit
Audit
Integrated Risk Management Committeemonitoring
ReportOperational Risk Management Meeting
department, is committed toCompliance Meeting
ReportCompliance Committee
verifying and improving theAnti-Money Laundering Meeting
Other subsidiaries
Risk management /<<Integrated risk management / compliance divisions>>
adequacy and effectiveness of risk
compliance divisions
Risk Management Division
management structure, while
ReportRisk management /conducting audit of the compliance
Subsidiaries ofcompliance divisions
The Juroku Banksystem of the Group as a whole.

The Company positions risk
management and compliance as
an important duty to ensure thesoundness and safety of groupmanagement, and has establishedpolicies and regulations related torisk management and compliance.
Each group company has alsoestablished its own policies andregulations based on the
Company’s policies andregulations, and strives to conduct
appropriate business.

49

Recognition of Top Risks
From the perspective of probability and degree of impact, the Board of Directors has chosen as top risks for the Group the “risk events that
may have a significant impact on our financial position and business performance, such as disrupting our business strategy and reducing
profitability within the next year.” We are taking necessary measures in advance to control such risks, and striving to manage them inorder to respond dynamically even if they manifest.
In addition, all employees are regularly kept informed on the top risks through meetings and other means.
Risk event
Intensified competition in the market
environment where interest-bearing
financing has become the reality after
decades of absence

Intensified competition for attracting borrowers as well as savers
Soaring acquisition cost for deposits and increase in liquidity risk

Recession and disturbance in the financial
marketDeterioration in valuation gains and losses of securities due to increase in interest rate anddownturn in stock market
Recession attributable to recurrent inflation and real estate slump in China and the U.S.

Political and geopolitical risks

Division of the world attributable to emerging homeland-first ideology, and tariff hike resulting
from the U.S.-China friction
War in Ukraine, tension in the Middle East
Possible outbreak of military conflict between China and Taiwan as well as that in the Korean
Peninsula

Climate change risks

Degradation of the Group’s corporate value due to failure to catch up with the trend of
decarbonization
Business interruption and deterioration of collateral value due to extreme weather
Deterioration of business results and increased credit-related expenses due to delay in thetransition to decarbonization

Natural disaster risks

Impairment of assets and difficulty in business continuity due to large-scale earthquake,windstorm and flood

Cyber-attacks, rapid progress of DX

Decline in customer confidence due to cyber-attacks
Intensified competition with other industries due to progress in digitization and digitalization

Increase in credit-related expenses

Rising raw material cost attributable to recurrent inflation, and deterioration of business results
due to manpower shortage

Personnel and compliance risks

Degradation of the Group’s corporate value due to inappropriate conduct

Inadequate response to antisocial forces andanti-money laundering measures

Loss of credibility due to transactions with antisocial forces
Administrative disposition and loss of credibility due to failure in anti-money laundering
measures and violations of foreign exchange laws and others

System failure risks

Decline in customer confidence due to system failure

Risk management and compliance-related policies and regulations, etc.
Juroku Financial Group[Risk management]

Integrated Risk Management Rules

Operational Risk
Management Rules

Compliance Policy

Compliance Rules

Whistleblowing System
Implementation Rules

Money Laundering
Prevention Policy

Risk Management Regulations for
Money Laundering and Financingof Terrorism

Integrated Risk Management Policy

Risk scenario

Code of Ethics[Compliance][Anti-money
laundering measures]Group Companies

JUROKU Financial Group ANNUAL REPORT 2024

Business operations in accordance with Juroku Financial Group’s policies and regulations

50

Risk Management Structure and Compliance System<Compliance System>

well as training or study sessions for all employees (including
part-timers and temporary workers) are continually organized,
presenting case study of the questionable conducts recently reported
at corporations involving compliance, such as legal complianceviolations, wrongdoings, corruption and harassment.
*1 Bribery, embezzlement and giving and receiving entertainment/giftbeyond social norms*2 Procedures to be followed in the event of discovery of a complianceviolation or other conduct that can be considered as such (summary)(1) [Report of occurrence] The person who discovered the complianceviolation or the like must report to the Group Risk Management
Division, or alternatively report to or consult with the external lawyer
designated for this purpose according to the internal reporting system.
(2) Report to the Group Management Council, etc. The Group Risk
Management Division shall report to Group Management Council, etc.,
as appropriate.
(3) [Fact-finding and investigation] The Group Risk Management Division
shall instruct or execute fact-finding. Specific procedure or method forinvestigation, etc. shall follow the Incident Response Manual.
(4) [Report] Follow-up report shall be made to the Compliance Meeting, etc.
as appropriate based on the results of the fact-finding exercise.
(5) [Remedial measures and recurrence prevention measures] Report shall bemade to the Board of Directors, etc. on the remedial measures andrecurrence prevention measures based on the results of the investigation.

Internal Reporting System
The Company has established a whistleblowing system for the entire
Group. In order to early detect, correct and prevent complianceviolations (such as legal compliance violations, wrongdoings, corruption, violation of internal rules, and harassment), the Company andother group companies have each set up whistleblowing contact
points.
The whistleblowing system applies to all officers, employees andpart-time workers, etc. (including those who were Executive Officers,
employees, part-time workers before resignation or retirement lessthan one year ago) of the Company and its consolidated subsidiaries,and expressly guarantees that whistleblowing/consultation by thewhistleblower be kept strictly confidential, that the whistleblower
should under no circumstances be disadvantageously treated becauseof his/her act of whistleblowing/consultation, and that any suchdisadvantageous treatment if actually done at all should be dealt within a rigorous fashion, to ensure that all officers and employees can use
this system with peace of mind. In addition to internal contact points,
we are working to enhance and improve our whistleblowing system
via designated external lawyers as contact points for reporting andconsultation.
We have appointed a Chief Whistleblowing Officer as the generalmanager of the whistleblowing system, and are working to raiseawareness of the whistleblowing system among officers and employees
throughout the Group.
The whistleblowing system and how it works are broadly communicated across the Group via the internal intranet, while being madeviewable by smartphones for business use.

51

JUROKU Financial Group ANNUAL REPORT 2024

Designated dispute resolution organizations
with which The Juroku Bank has anagreement

Hours of operation
Monday through Friday, 9:00 a.m. to 5:00 p.m.
(excluding national holidays and bank holidays)
Japanese Bankers Association (Contact: JBA Customer Relations Center)

Telephone: +81-3-5252-3772
Trust Companies Association of Japan (Contact: Trust Consultation Center)

Telephone: +81-3-6206-3988

Customer Information Management
The Company recognizes the secure management of customer information as one of its most important issues.
We are fully aware of various risks such as leakage and loss of
information to external parties with regard to customer informationacquired by each group company. As such, we have established the“Information Security Management Rules” to ensure proper handlingof customer information, and also disclose a “Personal Information Protection Policy” (Privacy Policy).
Based on these regulations, we have appointed a Chief Information
Officer as the general manager of the protection of information assets,
and designated responsible divisions according to the type of information assets, as efforts to protect information assets more effectively.

Elimination of Antisocial Forces
The Company has established the “Basic Policy against Antisocial
Forces” for the entire Juroku Financial Group, and the Group as awhole has developed systems to firmly confront and exclude relationships with antisocial forces that threaten the order and safety of society.

Specifically, we work closely with external expert organizations andother institutes, and enhance effectiveness through training for officers
and employees and other measures.

Initiatives to Prevent Money Laundering, etc.
There is a growing threat of international terrorism, and fund transfers
by criminal organizations and terrorists are spreading and becominginternational. As such, there is a stronger international demand for financial institutions to prevent money laundering, financing of terrorism,
and proliferation financing (hereinafter “money laundering, etc.”).

The Company’s Group Risk Management Division oversees theGroup’s overall anti-money laundering, etc. measures, and each groupcompany appoints a person responsible for anti-money laundering, etc.
measures from among its officers.

Risk management system
We have positioned the prevention of money laundering, etc. as a top management issue, and we have built an effective risk
management system and are working to further enhance it.

Risk assessment documents
We identify and assess risks we are facing associated with money laundering, etc., and plan “documents prepared by specified
companies (risk assessment documents),” in order to implement mitigation measures commensurate with the risks.

Training for officers and employees
We continuously implement training for officers and employees, so that they can gain deeper knowledge and understanding
regarding measures against money laundering, etc., and improve their expertise and adaptability according to the roles of various
divisions.

Audits on compliance status
The Audit Division conducts internal audits from an independent perspective on a regular basis and as necessary. Based on the
results of these audits, we strive to further improve our systems.

Customer Protection
The Company has established a Group-wide “Customer Protection
Management Policy,” and is striving to protect customers and improve
convenience for the whole Group. The Juroku Bank and Juroku TT
Securities have planned and announced a “Customer-oriented Business
Operation Policy,” and are working to further improve the quality of
their products and services from a customer-oriented perspective.
The “Customer Protection Management Policy” is aimed at
protecting customers and improving convenience through thefollowing measures.

The Juroku Bank has concluded an agreement with the following designated dispute resolution organizations. By involving a neutral and fair
third-party organization, we are appropriately responding to the financial ADR system, which are procedures intended for simple and swift dispute
resolution without resorting to litigation.

Contact for consultations, inquiries, opinions
and complaints about the Bank

Compliance Structure
The Company has designated the Group Risk Management Division
to oversee compliance and manage the status of compliance for theentire Group.
Every fiscal year, the division formulates a Group Compliance
Program, a concrete action plan for compliance, and conducts appropriate compliance risk management for the entire Group. The division
is engaged in confirming that the Group is properly practicing
compliance, as well as monitoring the progress in the Group Compliance Program and status of compliance including whistleblowing andcorruption*1, while holding meetings of the Group Risk Compliance
Meeting and the Group Risk Compliance Committee regularly and asneeded for deliberation and instruction on the compliance system. The
content of the deliberations at the Group Risk Compliance Meeting isreported to the Board of Directors to ensure appropriate supervisionby the Board of Directors.
Procedures*2 to be followed by officers and employees who discovered a compliance violation or other conduct that could be considered
as such are specified in the Compliance Rules and Compliance
Manual, as part of the framework for fact-finding and investigation ofthis type of wrongdoing.
For the purpose of fermenting compliance awareness across theGroup, the ethics policy is being thoroughly permeated among allconcerned, while training for officers including Outside Directors as

Designated dispute resolution organization

Giving appropriate explanations and providing information on
products and services to customers
Appropriately handling customer requests, consultations, inquiries,
complaints, etc.
Appropriately managing customer information
Appropriately managing outsourced businessAppropriately managing conflicts of interest in order to prevent unduly infringement on the interests of customers

Initiatives for Prevention of Corruption
The Company prohibits in its ethics policy all corrupt practices
regardless of whether in Japan or overseas or whether directly or
indirectly, including bribery involving public officials and/or all stakeholders concerning the Group’s business, embezzlement, breach oftrust, receiving or giving money and kind or entertainment and otherbenefits, in an effort to eliminate corruption.
With a view to eliminating corruption including bribery, embezzlement, giving and receiving of entertainment/gift beyond social

norms, the Company has had its ethics policy thoroughly permeatedwithin the Group, and continually implements training or study
sessions for all officers and employees on the matters including
prevention of corruption.
Furthermore, the Company conducts internal inspection of payments to third parties and other expenditures as needed, while
preparing accurate and complete ledgers and records to maintain andadminister them appropriately.

52

ESG Data
Environment
Energy consumption
Item
City gas
Liquefied petroleum gas (LPG)
Kerosene
Gasoline
Electricityof which, consumption of CO2-free electricity

Unit
Thousand m3t
KLKLThousand kWhThousand kWh

FY20217410
10497
17,899725

FY202276
10
11493
17,322
1,762

FY2023
104
17
13
458
16,7083,254

GHG (greenhouse gas) emission
Item
Scope 1 (Direct emissions)
Scope 2 (Indirect emissions)
Total emissions (Scope 1 and 2)
Scope 3Category 1
Purchased goods and services
Category 2
Capital goods
Category 3
Fuel- and energy-related activities not included in Scope 1 and 2
Category 4
Upstream transportation and distribution
Category 5
Waste generated in operations
Category 6
Business travel
Category 7
Employee commuting
Category 8
Upstream leased assets
Category 9
Downstream transportation and distribution
Category 10 Processing of sold products
Category 11 Use of sold products
Category 12 End-of-life treatment of sold products
Category 13 Downstream leased assets
Category 14 Franchises
Investments (listed stock/corporate bonds)
Category 15
Investments (business finance)
Total of Scope 3

Unit
t-CO2
t-CO2
t-CO2

FY2021
1,375
6,504
7,879

FY2022
1,488
6,020
７,508

FY2023
1,347
6,153
7,500

t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2
t-CO2

12,992
5,005
1,548
1,695
50
146
3,106
—
—
—
—
—
383
—
—
—
24,925

14,234
3,976
1,536
1,839
64
192
3,193
—
—
—
—
—
426
—
—
9,011,285
9,036,745

14,761
7,199
1,467
1,857
50
236
2,940
—
—
—
—
—
428
—
353,201
3,153,964
3,536,103

Unit
Billions of yen
Billions of yen
Cases
Cases

FY2021
193.0
73.0
47
2

FY2022
234.8
85.9
91
43

FY2023
224.5
84.4
79
109

Unit
Persons
Persons
Persons
Persons
Persons
Persons%
Persons
Years old
Years
Years
Years
Thousands of yen
Thousands of yen%%%
Persons
Persons%
Persons
Persons

FY2021
2,548
353
728
611
856
930
36.5
916
43.0
20.1
21.4
17.9
6,870
404
40.2
64.8
63.8
75
36
2.4
496
33

FY2022
2,375
335
638
551
851
875
36.8
816
44.2
19.1
20.5
16.7
6,976
412
43.6
66.1
62.2
72
40
2.6
477
37

FY2023
2,278
369
544
551
814
858
37.7
721
43.1
20.4
21.7
18.3
7,132
415
46.0
67.2
60.1
108
50
2.7
493
45

*Categories 8 to 12 and 14 in Scope 3 are not applicable due to the nature of business of the Company.

Environmental financeItem
Sustainable finances providedof which, environment-related finances
Decarbonization consulting
SBT certification support

SocialHuman capital (such as diversity)
Item
Number of employees
Age range: 20–29
Age range: 30–39
Age range: 40–49
Age range: 50 or overof which, number of female employees
Ratio of female employees
Number of contract and temporary employees and those overseas locally employed
Average age
Average years of serviceof which, average years of employment of male employeesof which, average years of employment of female employees
Average annual salary
Average monthly salary
Gender pay gap (all types of workers)of which, for full-time workersof which, for part-time and fixed-term workers
Number of new graduatesof which, number of female recruits
Ratio of employees with disabilities
Number of senior managersof which, number of female senior managers

Item
Ratio of female senior managers
Total number of managersof which, number of female managers
Ratio of female managers
Number of days of paid leave claimed
Ratio of paid leave claimed
Ratio of employees taking childcare leave (male)
Ratio of employees taking childcare leave (female)
Ratio of employees taking childcare leave (male and female)
Number of employees taking nursing care leave
Number of employees utilizing reduced working hour system

Unit%
Persons
Persons
%
Days
%
%
%
%
Persons
Persons

FY2021

Unit
Persons
Thousands of yen
Persons
Hours
Hours
Persons
Hours
Hours
Persons

FY2021

FY2022

6.7
1,168
126
10.8
9.6
48.6
89.8
100.0
93.8
3
107

FY2023

7.7
1,117
130
11.6
10.5
54.1
100.0
100.0
100.0
5
89

9.1
1,100
130
11.8
10.5
54.7
92.3
100.0
95.1
2
110

Human capital (human resources/talent development)
Item
Number of employees utilizing in-house open recruitment (career challenge) system
Annual training expenses
Total number of employees attending training
Total number of hours of training received annually
Average number of hours of training received per person
Human resources
development training*1

Total number of attendees
Total number of hours of training received

Number of employees qualified for IT Passport
Number of employees who successfully passed examination for advanced digital-related
qualifications*2

FY2022

FY2023150
32,827
7,695
52,36221
5,305
37,38715
130—52,086
9,617
66,68028
4,986
33,83014726

128
70,545
12,15878,82035
8,029
56,096
25
1,031

76

94

147

Persons*1 Position-specific training such as “newly appointed branch manager training,” “newly appointed senior manager training,” “newly appointed manager training,” and “new employee training”*2 Including “Registered Information Security Specialist,” “Applied Information Technology Engineer Examination (AP),” and “Fundamental Information Technology Engineer Examination”

Healthy management
Item
Ratio of employees receiving stress check
Number of employees utilizing company subsidy toward overall medical checkup cost

Unit%
Persons

FY2021

FY2022

FY2023

98.5
2,861

99.0
2,747

99.1
2,556

FY2021
11,78014.6

FY2022
12,72013.9

FY20238,630
7.5

FY2021

FY2022

FY2023

Other
Item
Total amount of SDGs private placement bonds handledof which, total amount of donation

Unit
Millions of yen
Millions of yen

Governance
Board of Directors
Item
Total number of Directorsof which, number of Outside Directorsof which, number of female Directors
Number of the Board of Directors’ meetings held
Average attendance ratio

Unit
Persons
Persons
Persons
Times
%

11
4
2
7
100

11
4
2
11
100

11
4
2
11
100

Management Advisory Board (Personnel Affairs Committee, Compensation Committee)
Item
Number of members of each committeeof which, number of outside members
Chairperson of each committee
Number of meetings of each committee held
Average attendance ratio

Unit
Persons
Persons—
Times%

FY2021

FY2022

FY20235
3Outside Director
2
100

5
3
Outside Director
1
100

5
3
Outside Director
2
100

Unit
Persons
Persons
Persons
Times%

FY2021

FY2022

FY2023Unit

FY2021

Audit & Supervisory Committee
Item
Total number of Audit & Supervisory Committee Membersof which, number of Outside Directorsof which, number of female Directors
Number of meetings of the committee held
Average attendance ratio

3
2
1
7
100

3
2
1
11
100

3
2
1
11
100

Compliance and prevention of corruption
Item
Number of compliance training sessions held(training session organized by the Company for the Group’s employees)
Number of occurrences of compliance violations*
Number of occurrences of corruptions, expenditure related to fine, punishment andsettlement associated with corruption
Number of whistleblowing cases received

FY2022

FY2023

Times

18

16

19

Cases

0

0

0

Cases/Yen

0/0

0/0

0/0

Cases

4

5

3

* Incidents reported to the authorities pursuant to Article 53 of the Banking Act and Article 35 of the Regulation for Enforcement of the Banking Act

53

JUROKU Financial Group ANNUAL REPORT 2024

54

Corporate Data(as of June 30, 2024)

Deputy President

PresidentGroup Administration Management Division
Group Management Council

Chairperson
Audit & Supervisory
Committee

Shareholders Meeting

Board of Directors

Organizational Structure

Director and Senior Managing
Executive Officers

Director and Managing
Executive Officers
Director andExecutive Officers
Directors
Senior Managing Executive Officers

Group Corporate Planning Division

Group DX Management Division

Group Risk Management Division

Group Sales Management Division
Sustainability Management Office

Managing Executive Officers
Executive Officers
Group Management Audit Division
Audit & Supervisory Committee’s OfficeGroup companies(as of June 30, 2024)

Company name55

Location

Business lines

The Juroku Bank, Ltd.

8-26 Kandamachi, Gifu-shi+81-58-265-2111

Banking service

Juroku Research Institute Co., Ltd.

7-12 Kandamachi, Gifu-shi+81-58-266-1916

Survey and research service, business consulting
service

Juroku Tokai Tokyo Securities Co., Ltd.

7-12 Kandamachi, Gifu-shi+81-58-266-4516

Financial instruments service

Juroku Card Co., Ltd.

7-12 Kandamachi, Gifu-shi+81-58-263-1116

Credit card flotation service

Juroku Lease Co., Ltd.

7-12 Kandamachi, Gifu-shi+81-58-262-3116

Leasing service

Juroku Densan Digital Service Co., Ltd.

7-12 Kandamachi, Gifu-shi+81-58-262-1116

Payments and digital solutions service

NOBUNAGA Succession Inc.

7-12 Kandamachi, Gifu-shi+81-58-266-9161

Management succession and M&A advisory
serviceNOBUNAGA Capital Village Co., Ltd.

6-11-1 Kandamachi, Gifu-shi+81-58-264-5516

Operation and management of investment
business limited partnership

Kanda Machi Okoshi Co., Ltd.

6-11-1 Kandamachi, Gifu-shi+81-58-262-1613

Consulting services related to local revitalization

Juroku Business Service Co., Ltd.

34 Nakatakeyacho, Gifu-shi+81-58-266-2682

Clerical work service

Juroku Credit Guarantee Co., Ltd.

7-12 Kandamachi, Gifu-shi+81-58-266-1616

Credit guarantee service

JUROKU Financial Group ANNUAL REPORT 2024

56

Annual Report 2024
Published in September 2024

Publisher: Group Corporate Planning Division, Juroku Financial Group, Inc.
8-26 Kandamachi, Gifu-shi, Gifu 500-8516, Japan
Telephone: +81-58-207-0016 (main switchboard number)Company website: https://www.16fg.co.jp/english/