ANNUAL REPORTOverview of Juroku Financial Group

orporateData
Data
CCorporate

G roup Management Philosophy(as of March 31, 2023)

our customers andthe local community

Management

We aspire to be a comprehensive
financial group that builds afuture with local communities
and achieves sustainablegrowth with local economies

Philosophy

in order to contribute to the realization of a

VisionTrust &
Integrity

Creation &Innovation

Diversity &Inclusion

We will act with integrity tosecure the trust and business of
our customers and the local
community

We will respond to every changewith innovation anddetermination, and create newvalue for the next generation.

We will maximize our group’s
strengths by embracing
individuality and leveraging
diversity.

Deputy President

Sustainability
Management
OfficeClearing Services
Department,+81-58-262-3116+81-58-266-1616
Juroku Densan Digital Service
Senior Managing Executive Officers
Co., Ltd.
7-12 Kandamachi, Gifu-shi
Managing Executive Officers+81-58-262-1116

Mizuho Bank, Ltd.)DFA INTL SMALL CAP
VALUE PORTFOLIO(Standing proxy: Citibank,N.A., Tokyo Branch)

Executive Officers

Group Management Audit Division
Audit & Supervisory Committee’s Office

D irectory
E xternal ratings

Engagement Cycle

Code of
Conduct(as of June 30, 2023)

Group companies
NOBUNAGA Succession Inc.
10 Principal Shareholders:Management
The Juroku Bank, Ltd.
7-12 Kandamachi, Gifu-shi Group Administration
The Master
Trust Division
Bank of8-26 Kandamachi, Gifu-shi+81-58-266-9161
Japan,
Ltd.
(Trust)Director and Senior Managing+81-58-265-2111
NOBUNAGA Capital Village
Custody Bank of Japan, Ltd.
Officers
Juroku Research Institute Co.,ExecutiveCo.,
Ltd.
(Trust) Planning Division
Group CorporateLtd.
6-11-1 Kandamachi, Gifu-shi
Juroku Financial Group
7-12 Kandamachi, Gifu-shi+81-58-264-5516
Employee Stockholding+81-58-266-1916
Kanda Machi Okoshi Co., Ltd.
Association
DirectorandManaging
Division
Juroku Tokai Tokyo Securities
6-11-1 Kandamachi, Gifu-shiGroup DX
FujiManagement
Baking Group
Co., Ltd.
Executive+81-58-262-1613
OfficersCo., Ltd.
Meiji Yasuda Life Insurance
7-12 Kandamachi, Gifu-shi
Juroku Business Service Co.,
Company+81-58-266-4516
Ltd.
Sompo
Japan InsuranceGroup Risk
Management
Division Inc.
Juroku Card Co., Ltd.
34 andNakatakeyacho, Gifu-shi
Seino Holdings Co., Ltd
Director
7-12 Kandamachi, Gifu-shiExecutive+81-58-266-2682
The Bank of Nagoya, Ltd.
Officers+81-58-263-1116
Juroku Credit Guarantee Co.,
JP MORGAN CHASE BANKGroup SalesManagement Division
Juroku Lease Co., Ltd.
Ltd.
385781
Directors
7-12 Kandamachi, Gifu-shi
7-12 Kandamachi, Gifu-shi(Standing proxy: Settlement &President

Chairperson

sustainable society.

ValuesCode of
Conduct

Audit & Supervisory
Committee

Achieving growthand prosperity for

MissionShareholders Meeting

Group

Date of Establishment:
October 1877
Authorized Shares:
46,000 thousand shares
Shares of Common Stock
Issued and Outstanding:
37,924 thousand shares
Stock Listed:Tokyo Stock Exchange Prime
Market and Nagoya Stock
Exchange Premier Market
Paid-in Capital:¥36,839 million
Number of Common Stock
Shareholders:
17,912
Number of Employees:
2,705
Board of Directors

Our group management philosophy is inherited from the basic philosophy of The Juroku Bank, and represents thefundamental spirit of the Juroku Financial Group and the foundation for all of our officers’ and employees’ activities. It
consists of three parts: Mission, Vision, and Values. When putting our philosophy into practice, the specific conduct ofour staff is governed by the Code of Conduct.

Group Management Council

Organizational Structure

Taking on the challenges faced by our customers
and local communities, and resolving them together.

(as of June 30, 2023)

Juroku Financial Group: Creating the future of the region together

Office Registeredin
Network
Hanoi
OfficeRating
HeadJuroku
Office Financial Group and Overseas
Both
The Juroku
Bank have obtained Representative
long-term issuer
rating “A+”from
theRepresentative
Japan Credit
8-26, Kandamachi, Gifu-shi,

Agency,Ltd. (JCR).
Gifu 500-8516,
Japan

G roup Structure

Telephone: +81-58-265-2111

After our transition to a holding company structure, as a general rule, each group company except joint ventures was made awholly owned subsidiary of Juroku Financial Group or The Juroku Bank, and a group management system was established for the
purpose of strengthening consolidated profitability and group governance.
(as of July 3, 2023)

Juroku Financial Group

Investment Ratio(Financial Group / Bank)The Juroku Bank

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%

Business consulting service, Survey and research 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

NOBUNAGA Succession Inc.

60%

Management succession and M&A advisory service

Business LinesNOBUNAGA Capital Village Co., Ltd.

100%

Operation and management of Investment business Limited partnership

Kanda Machi Okoshi Co., Ltd.

99%

Consulting services related to local revitalization

RatedBusinesscompanies
Solutions
DivisionInternational OfficeLong-term issuer rating
8-26, Kandamachi, Gifu-shi,
Gifu 500-8516, Japan P.O. Box 40
Rating+81-58-265-2111
outlook
Telephone:
Facsimile: +81-58-266-1698
date
SWIFT Rating
Address:
JUROJPJ T
Head of Office
Yukiyasu Horie

Shanghai Representative Office
18th Floor, Hang Seng Bank
Tower,
1000
LujiazuiFinancial
Ring Road, Group
PudongJurokuNew Area,
Shanghai, A+
People’sRepublic of(Unchanged)
China
Telephone: +86-21-6841-1600
StableFacsimile: +86-21-6841-1881
Chief Representative
Kazuhiro Mitsuishi

CONTENTS

1Singapore
Unit 1206, Pacific Place,
50 Raffles Place #38-06 Singa83B Ly Thuong Kiet Street,
Hoan Kiem District, Hanoi City,
pore Land Tower, Singapore
Vietnam
048623The
JurokuBank
Telephone: +84-24-3927-1616
Telephone: +65-6222-6616
Facsimile: +84-24-3927-1166
Facsimile: +65-6532-6616
A+ (Unchanged)
Chief Representative
Chief Representative
Hiroyasu Kawahata
Masahiko Takai
StableBangkok Representative OfficeNovember 9, 2022
Unit 6 25th Floor CRC Tower, All
Seasons Place, 87/2 Wireless
Road, Lumpini, Phatumwan,
Bangkok, Thailand 10110
Telephone: +66-2655-8016
Facsimile: +66-2685-3016
Chief Representative
Osamu Matsuoka

Overview of Juroku Financial Group

16 History of Juroku

30 Risk management structure

Corporate Data/Organizational
Gifu Prefecture (106)Structure/
Group companies/Contents

18 Potential of the Local Community

32 Compliance system

20 Initiatives for Sustainability

33 Stakeholder Engagement

Shanghai
Hanoi
Environmental Conservation andClimateTokyo Branch
Bangkok22
Change Actions
Dialogue between Chairman andOutsideSingapore
Aichi Prefecture (53)8
Directors
Mie Prefecture (1)28 Corporate Governance
2 Message from the President

34

Board of Directors and Audit & Supervisory
Board Members

35 Corpotate Data / Directory

Branch Highlights
Risk Management Structure /OperationalOsakaand Financial
Total 162Domestic
29 Offices
12(from Deputy President)
Compliance System135

M essage from the President

Staying Ahead of theCurve to Always Servethe Region
In April 2023, we launched our Long-Term Vision “16Vision-10” and our 2nd
Medium-Term Management Plan “Staying Ahead of the Curve to Always Serve theRegion: First Stage.”
The environment surrounding the Group is changing dramatically, not only due
to issues specific to Japan such as population decline and the development of a
hyper-aged society, but also due to lifestyle changes caused by the global spread of
COVID-19, and we are entering an era where the future is unpredictable. In thesetimes, it is not the prediction of the future that is important, but the creation of the
future through our own will.
With this in mind, in formulating our 2nd Medium-Term Management Plan, we
decided to break away from received ideas and formulate a new long-term visionthat will serve as a compass for the future management of the Group.
The theme of the Long-Term Vision “16Vision-10,” which is a blueprint of
where the Group wants to be in a decade from now, is “Staying Ahead of the Curve
to Always Serve the Region.”
The Group will leverage the broad and deep customer base, daily accumulated
information, and extensive human network cultivated by The Juroku Bank with ahistory of over 140 years. At the same time, it will become a regional
comprehensive financial services group that stays ahead of the curve to always

Juroku Financial Group, Inc.
Naoki Ikeda
Representative Director and President

2

serve the region with the strength of its complete environment for expanding its
business domains. In this manner, we will contribute to “achieving growth andprosperity for our customers and the local community.”3

Achieving Sustainability and Growth, Harnessing Purpose as a Driving Force

Achiev
ing
c

erity
osp
pr

conomic
val
ing e
ue
eat
Cr

ng social val
ue
eati
Cr

d

We have newly established “16 Group Energy” as an activity toStrategy,” which we have created through a backcasting approachrealize our Long-Term Vision “16Vision-10.”
based on our blueprint of where we want to be in a decade fromAs this diagram shows, we aim to be a regional comprehensive
now, as Group-wide efforts, we will take on the challenge offinancial services group that stays ahead of the curve to always
speedy reform and create new value.
serve the region as a frontrunner in the local
Long-Term Visioncommunity and society. To that end, we will
create social value through our efforts to solve
Staying Ahead of the Curve to Always Serve the Regionsocial issues in the local community(=Sustainability) and create economic value
through the growth of the Group’s businesses
er/local growth
om
an
t
s
and our own growth and success (=Growth),udriven by our Purpose of “Achieving growth
Contributing to the local community (customers,
officers and employees, shareholders) by achieving
and prosperity for our customers and the local“Sustainability” (i.e., creating social value) andcommunity,” which is our great ambition.
Purpose“Growth” (i.e., creating economic value) with
“Purpose” serving as our driving force.
Our Long-Term Vision designs the futureof the Group and serves as a compass for all
officers and employees of the Group to work as
one to move forward. We hope to achieve thisthrough a firm understanding by all of us and
GrowthSustainability
through our daily activities.
The 2nd Medium-Term Management
Plan, which covers the first five years of thisLong-Term Vision, is positioned as the “First
Stage.”
Solving social issues
Business growth
By promoting the four basic strategies of
Making a foray into newContributing to creating a“Transformation Strategy,” “Humanbusiness domains
sustainable society
Becoming a frontrunner inthe region and society
Growing and being empowered
Enhancing quality of life in the
Innovation Strategy,” “Customer-Firstof our officers and employees
regionMarketing Strategy,” and “Region-Producing

The Keyword is “Gratitude”

A Feeling of Being Rooted in the Region
In formulating our Long-Term Vision, we reconsidered how weshould deal with our customers and what is an ideal for our officers
and employees should look like, which we naturally take as a given
in our daily lives.
First, for us, “core customers” are “people who live andundertake activities in the region,” such as those who actively takeon challenges in the region for the growth of both their businessand themselves and those who show leadership in the region. It is
important for us to understand our customers well and identify
with them by giving attention to, connecting with, and closely
supporting them.
Next, we considered our “shared hope and thoughts” as weinteract with our customers. We believe that the feeling that all
officers and employees had when they joined the Group was “afeeling of being rooted in the region,” such as an aspiration to

4

liven up the region and aspiration to give back to the region. We
are committed to providing an environment in which our officers
and employees with these desires and aspirations can perform attheir full potential.
Each and every employee thoroughly performs at his or her
full potential and voluntarily takes on challenges. They also act
voluntarily for the region by embracing what they wish and hopefor the region. In this manner, it is important for the officers andemployees themselves to demonstrate diversity and ultimately
realize a productive life as a person living in the region while
experiencing their growth first-hand.
By ensuring that each and every officer and employee
understands and shares these values, the entire Group will work inthe same direction to achieve our Long-Term Vision.

The Long-Term Vision is the blueprint of where we want to be ina decade from now, and to realize this vision, it is important foreach and every employee to be highly motivated to work with “jobsatisfaction.”“What’s the most rewarding part of your job?”
This was one of the themes addressed at our “Sustainability
Meetings.” The “Sustainability Meetings,” in which the Bank’s
President and I exchange views on the theme of sustainability with
the Group’s employees, started in August of last year. Because wewant to focus on listening to the opinions of each and every
employee, we hold these meetings in very small groups, with only
five or six participants each time. In terms of age, more than 90%of the participants were in their 20s and 30s combined, and theaverage age was 32, meaning a lot of relatively young employees
took part. We believe that the small size and close proximity of
the group allow for a real exchange of views and opinions.

At such meetings, when participants were asked to list when“you felt rewarded for your work,” the same trend was observed
each time, amidst a variety of opinions.
The keyword is “gratitude.”More than half of the respondents answered, “When customers
thank me.” All participants also cited things related tocontributing to customers and the local community as job
satisfaction, such as “when customers are happy,” “when I feel theirtrust,” “when I am the first person they consult,” and “when I cancontribute to the local community.”
Employees view communication with customers, appreciation,and smiles as job satisfaction. This way of thinking is precisely
what is linked to our group management philosophy of “achieving
growth and prosperity for our customers and the local
community.”5

To Realize a Productive Life as a Person Living in the Region

We Seek to Create the Future Together with the Local Community

The Group introduced a new human resources (HR) system in
April 2023.
The purpose of the introduction is threefold. The first is toensure that all employees share and embody the three values set
forth in the group management philosophy: “Trust & Integrity,”“Creation & Innovation,” and “Diversity & Inclusion.” The second
is to foster a change in awareness and behavior in terms ofchallenges, creativity, and innovation. The third is to encourage
each and every employee to take voluntary action and realize his or
her own growth, so that he or she can achieve an irreplaceable andproductive life as a person living in the region.
In order for us to fulfill our group management philosophy of“achieving growth and prosperity for our customers and the local
community,” it is extremely important that we ourselves grow andrealize prosperous lifestyles.
As the corporate manager of the Group, I am committed tohelping all of our officers and employees achieve a productive life.

On July 6, 2023, we announced that we had been selected as thepreferred bidder as a result of our participation in a public call for
proposals in support of the purpose of the “Gifu-shi Main
Government Building Site Utilization Project” promoted by Gifushi.
It has been 46 years since the current head office building wascompleted in 1977, which was then the Bank’s 100th anniversary.
Therefore, we were considering the construction of a newheadquarters building to mark the upcoming milestone of The
Juroku Bank’s 150th anniversary in 2027. Against thisbackground, in March 2023, Gifu-shi presented theapplication guidelines for a project to utilize the site of themain government building. After reviewing the details, we
decided to participate in the proposal process because webelieved that Gifu-shi‘s basic idea for the project was in linewith our group management philosophy of “achieving
growth and prosperity for our customers and the local
community.”
The concept is “’16FG Office & Park’ for creating thefuture of ‘#GIFU’ together.” We will establish a base withboth a “beautiful and comfortable common space” and a“workplace that is ahead of its time” to enhance theattractiveness and circulation of the downtown area.

The most important management resource of the Group is its
human resources, each and every employee. By understanding eachand every employee’s values and linking what is important tothem to the group management philosophy, we will help them totake voluntary action and experience their growth first-hand.
Based on this, in order to achieve growth, prosperity, andsustainability for our customers and the local community, we will
strive to develop human resources so that all officers andemployees can perform at their full potential, build relationshipsof trust with our customers, and proactively meet the challenges of
the Group’s various strategies.
Corporate activities are driven by “people,” and the Group canonly move forward with “people” in place. Under the Human
Innovation Strategy, the entire Group is firmly committed tovaluing such “people.”

Contributing to Sustainable Growth of the Local Economy through Management Succession Support
On July 3, 2023, NOBUNAGA Succession Inc. was established asa joint venture with Nihon M&A Center Holdings Inc. tocontribute to solving management succession issues faced by local
companies and to support sustainable growth of the local economy.
The number of companies in Gifu and Aichi prefectures,
where the Company has its business base, is decreasing due to thelack of successors and other factors. If nothing is done, the vitalityof the local community will be lost.
In the past, a long-established sake brewery with a history ofover 200 years in the old town of Takayama was considering
closing down due to a lack of successors. Through our mediation, a
local upscale Japanese inn took over the management of thecompany, which has now quintupled its annual sales, created newjobs, and transformed it into a thriving enterprise. Had they6

chosen to close the business, the building would have been
demolished and the employees would have lost their jobs.
Based on this first-hand experience, we believe thatmanagement succession is a very important factor in achieving
growth and prosperity in this region and a social issue that needs
to be addressed.
The establishment of this joint venture demonstrates ourwillingness to work to resolve these issues with even greater
determination.
The Company’s growth strategy is to collaborate and form
joint ventures with partners from different industries with whom
we have trust and mutual understanding. Against this backdrop,
we decided to ask Nihon M&A Center Holdings to help us
establish this joint venture as a partner with more specialized
knowledge and solutions. Nihon M&A Center Holdings has
provided us with a variety of support since 2000, when we began
working on M&A operations at The Juroku Bank, and we have
deepened our relationship of trust and mutual understanding.
While there have been initiatives to establish specializedcompanies or business tie-ups in which the Bank has solely
invested, this is the first time in Japan that a joint venture has
been established.
By combining Nihon M&A Center Holdings’ extensive knowhow in management succession with the Group’s broad and deep
customer base in this region and the information it accumulates ona daily basis, we will respond to the “management succession”
needs of companies in various stages and realize growth andprosperity in the local community.

Q (Quality)

This is an extremely important project that embodies ourgroup management philosophy of “achieving growth andprosperity for our customers and the local community.”
Since our establishment, we have been growing together withthe citizens of Gifu. Going forward, we want to continue to stayahead of the curve to always serve the region.
We would like to create a beautiful and comfortable common
space and a workplace that is ahead of its time on the site of themain government building loved by the citizens of Gifu, andcreate the future together with the people of the region.

A (Acceptance) = E (Effect)

Professor Kazuo Ichijo, who has been our Executive Advisor since
May 2022, gave us a lecture on the idea of the “Formula for
Change,” which is “Q A = E,” that is, “No matter how great theplan for change is, it will not produce an effect unless people
accept it.” “Q” stands for Quality, “A” for Acceptance, and “E” forEffect.
The strategies set forth in the Long-Term Vision and the 2nd
Medium-Term Management Plan can only be implemented if eachand every employee accepts them as his or her own. Without such
implementation, our Purpose, “achieving growth and prosperity
for our customers and the local community,” is not possible. We
would like to share this idea with all officers and employees andalign our collective direction.
In addition, the local community is currently facing a variety
of problems and is entering an era where the future is uncertain. In
these times, it is difficult to look ahead with conventional received
ideas, and all officers and employees must move forward with one

heart in the same direction based on a new sense of values. If all
officers and employees hold fast to our beliefs as a group andaccept risk, we will see the light at the end of our journey, filledwith our strong spirit of challenge.
Driven by our Purpose of “achieving growth and prosperity forour customers and the local community,” we, the Juroku Financial
Group, will be a comprehensive regional financial services groupthat stays ahead of the curve to always serve the region by making
solid progress in creating social and economic value.
We have a common desire to contribute to this local
community where we were born and raised. With this in mind, allofficers and employees will grow together and move forward
together by demonstrating “16 Group Energy.”
We ask you to look forward to “the Juroku Financial Group
creating the future of the region together” and also would greatly
appreciate your continued support.

7

D ialogue between Chairperson and Directors

Utilizing the Diversity of the Region to Achieve a Brighter Future Together
The dialogue was held on the theme of the diverse issues faced by local communities and diversity
and inclusion (D&I), a key to solving those issues.

Regional Revitalization

D&I

Tsuge: Since the Juroku Financial Group’s activity area is Aichi and
Gifu prefectures, where manufacturing industries are flourishing, it

Murase: With the declining birthrate, the question being asked iswould be a great advantage if we could contribute the different“how to create an environment that actively welcomes a diverse“sensitivities” of each of our employees to the development of local

workforce” in order to revitalize the region.

industries.

Ishikawa: Yes, that is correct. In the Company, we encourage our

Ito: Nowadays, we are in an era where consumers demand quality.

employees to find their own value and grow autonomously while

Since there are a lot of professionals in this region, we believe there ismaking the most of their individuality in the new HR system thatplenty of opportunity if we can link real techniques to sales in line

began in April 2023.

with the consumer mindset.

Tsuge: Given the growing trend toward human capital management,

Murase: Local industry is a symbol of sustainability because it is athe new HR system, which embraces diversity and maximizes theform of local tradition. I believe that bringing together young people

value of all employees, will also enhance the medium- to long-termfrom the city and people from abroad will make it easier to come up

value of the Juroku Financial Group.

with innovative ideas. As a company that supports the region, we

Ito: In today’s business scene, “sensitivity” is increasingly required inwant to actively contribute to its sustainable growth.

addition to mere expertise and technical skills. For this reason, I
think it is very important to have an environment where people canfeel close to “abundant nature, history, and culture.” In that sense, I

NaohikoIshikawa

Director (Member of the
Audit & Supervisory
Committee)
Juroku Financial Group, Inc.

Yukio
MuraseRepresentative Director andChairperson
Juroku Financial Group, Inc.

SatokoIto

Outside Director
Juroku Financial Group, Inc.

Satoe
Tsuge

Outside Director (Memberof the Audit & Supervisory
Committee)
Juroku Financial Group, Inc.

Advancement of Women

D&I

think there are more opportunities to develop “sensitivity” in rural

Ito: Gifu and Aichi prefectures have excellent manufacturing

areas.

techniques, but I believe that from now on it will also be necessary toIshikawa: Efforts are being made to combine the uniquehave a service industry perspective as well. I expect that new ideas

geographical advantages of this region, with its abundant nature andwill be generated through the active participation of women in suchadjacent major cities, with business. However, we also need to makeworkplaces.

efforts to improve our “sensitivity” as it is our role to enhance theMurase: Female involvement is indispensable for the development ofdiversity of the region.

local industries. In this context, the World Economic Forum recently

Murase: The environment is becoming more conducive for people toreleased the Gender Gap Index 2023, in which Japan ranked a low

draw on their own strengths even in rural areas. By understanding

125th among 146 countries. Looking at the content of the index,

local culture and values and applying them to business, we canJapan’s disparities are particularly noticeable in the economic field.

establish “profound connections with local people.” It will also help

Tsuge: Regarding the economy, while standards are being imposed

us provide more effective services.

on listed companies, such as “the ratio of female directors should be

Ito: That is correct. Recently, there has been a movement among

30% or more,” personally, I feel that the political field is still lagging

Tokyo-based companies to expand their base of activities to regional

behind. I think that if politics does not change, the whole country

areas as well. I believe there is a strong desire to improve the ability

will not change.

to understand and respond to the unique culture and values of theIto: It is true that many people do not feel a gender gap when they

regions. Conversely, a surprisingly large number of people active inare students. But as soon as you go out into the world and startTokyo are also from rural areas, so I feel that the environment inworking, the reality is that some people will start to think, “What’s

which one was raised is an important factor in one’s ability to succeed

wrong? Why is this different?” and feel an inequality between men

in business.

and women.

Murase: Previously, many jobs were completed locally, andMurase: If we look at politics and the economy, it is true that women

opportunities to expand business from Gifu to Tokyo or overseas wereare still underrepresented, and I think there is an obvious gap that we

limited. Advances in technology bring new opportunities to local

cannot see.

cities. With fewer geographical constraints, it is easier to bring

Ito: Companies should firmly create an environment in which

together diverse perspectives and ideas from people with different

women can develop their careers even after having children.

backgrounds, and richer, more creative solutions are more likely to

Realistically, however, many companies may find it impossible toemerge.

89Murase: In the “FY2023 Survey of New Employees’ Attitudes,”expressed. It is wonderful to see the appointment of the first female

Tsuge: As someone in a position to nurture young people, I think it

conducted by Juroku Research Institute Co., Ltd., respondents were

executive officer at the Juroku Financial Group.

is important to support employees by providing them with theasked about “What kind of place is a company?” Among women, theMurase: From now on, I would like to abandon the homogeneity andnecessary information and opportunities and encouraging andmost common response was “a place to contribute to society.” Thistaciturnity that are peculiar to Japan and encourage outside directors

supporting them if they are not able to keep up.

accounted for 32% of the female responses, far more than the 21% ofsuch as Ms. Ito and Ms. Tsuge to speak more freely.

Ito: Ultimately, it is very important to enhance one’s own skills or

the male responses.

Ishikawa: The first step is for individuals to express their own ideas.

attractiveness in order to become someone who people want to work

Tsuge: I really feel that there are a lot of ambitious women these

Then, through repeated discussions, diversity will be created inwith. To achieve this, I must do my best to do what is given to me

days. At a gathering I recently attended to discuss diversity, I was

individuals and in the organization.

and become a person who can be trusted. I believe that thevery encouraged by the participation of high school and college

accumulation of these efforts will lead to diversity as all kinds ofwomen who were highly aware of the issue.

people become more accepting of each other.

Ito: Many respondents answered “a place to earn income” to the same

Murase: Professor Ichijo of IMD, who has been our Executive

question, 33% of men and 28% of women, which is a very practical

Advisor since last May, told us in his lecture that the IMD Businessanswer. Under traditional values, there was a strong tendency for

School for Management and Leadership Courses, where European“men to earn money and women to take care of the home,” and men

executives attend, has a two-hour cocktail reception in the evening

felt pressured to do so. However, in an age where women are working

curriculum every day. Here, they are trained to be able tocontinue the same career as before while raising children. I think weas hard as men, if they can support each other and not just men, they

communicate with people of different religions, cultures, andneed to improve this perspective somehow.

will be able to secure a decent income. I think that kind of life iscountries even when they meet them for the first time, and they use

Murase: Companies must have a solid human resource system in

ideal.

all their knowledge and experience to build relationships with people
they have never met before.

place that does not put women at a career disadvantage once theyleave the company for maternity or childcare leave. I think it is also
very important to create a system that does not put men at a10

Governance

Tsuge: To do that, you would have to have a variety of topics to draw

D&I

from on a regular basis in order to keep the conversation going.

disadvantage when it comes to parental leave, which will lead to

Tsuge: Japanese corporate culture has long been shaped by male

Murase: I also need such study to improve my human skills. I hopecorporate growth and innovation.

leadership. There is an emphasis on homogeneity, such as not sayingthat the officers and employees of the Group will experience their

Tsuge: While more women are motivated to work these days, I also

what you think, not questioning, as well as the customary rules thatown growth first-hand through the development of their humanhear people saying that they do not aspire to higher positions. Rather

have been in place for a long time, which is said to be a cause ofskills, and realize a productive life as a member of the same company

than feeling the pressure of responsibility, I think many women may

injustice. In this sense, the mandatory appointment of outside

Ito: Embracing diversity means that an individual must have aand community. I also hope that each of them will make the most ofimagine a lack of work-life balance, such as “difficulty balancing

directors is a very good thing for Japanese companies. When you lookcertain level of self-improvement, or he or she will not have thetheir individualities to help the people of this region andpersonal and family life,” from the sight of their bosses working longat something with an outsider’s eye, you might notice things andability to recognize diversity. First, we must look at ourselves anddemonstrate the presence of the Group.

hours. In order to promote the advancement of women, it may bethink, “Why are you doing this?” While learning about the role ofgrow fully. Self-improvement is important as I believe that diversity

necessary to educate those in higher positions who have a strong

outside directors, I was taught that it is important to speak without

can be recognized precisely because I myself have grown.

influence within the company to change the way they work.

reading the room, and since then I have been conscious of this when

Ishikawa: Each individual’s increased autonomy and uniqueness will

Ishikawa: Many efforts are being made to promote the advancement

attending board meetings. I also think that increasing the number ofalso help to enhance corporate governance. Ms. Tsuge and Ms. Ito,of women. I heard that a female employee who had worked in a job

female directors would be very meaningful, as it would help

how did you enhance your human skills?

that previously had a strong image of being performed by men said,

revitalize the Board of Directors in terms of diverse opinions being

Tsuge: The people and senior staff at my current audit firm have

“At first I was worried, but now I am thankful that my future

great human qualities, and I have had the opportunity to listen topossibilities have expanded.”lectures and have discussions with them about what I should focus on

Murase: Going forward, I would like to see both local communities

to improve my human skills, which I think has been very beneficial. I

and companies actively involved in creating an environment

have also been interested in many things myself and have made an

conducive to raising children, such as by “improving childcare

effort to learn not only in my field of expertise, but also by attending

systems and childcare support facilities and reviewing work systems,”

seminars and reading books in other fields. I believe that I have beenso that local residents and employees can easily make these choices.

greatly influenced in many ways by the wonderful people I have met

Ito: In order to create an environment where women can workin the process.

comfortably, I feel the need to change men’s sense of values. Even if a

Ito: In my professional life, I was employed in a job that allowed me

workplace environment is created, it will be meaningless without

to meet people from many different industries, so I spent my days

men’s understanding of housework and childcare. Therefore, it isexperiencing first-hand the diverse ways of thinking through mynecessary for companies to consider that even if men are actively

work. I believe this has resulted in my current diversity. If you have

involved in housework and childcare, it will not hinder their career

the opportunity to meet people in different fields, you should meetdevelopment.

them, and I feel that nothing is ever wasted, and that if you seek andTsuge: That is correct. In terms of supporting women’s activities, it

gain experience yourself, you will inevitably connect with what you

is meaningful to increase the rate at which men take childcare leave.

need.

11

O perational and Financial Highlights

The Juroku Bank, the core company of the Group, reported
record-high fees and commissions of ¥12.6 billion, an increase of¥1.5 billion year on year, due to continued expansion in
individual-related revenues and corporate-related revenues.
However, core gross operating profit decreased by ¥2.7 billion year
on year to ¥65.7 billion due to an increase in foreign currency
funding costs and other factors.
Additionally, due to a decrease in expenses of ¥2.3 billion year
on year to ¥37.1 billion, core net operating profit decreased by¥0.4 billion year on year to ¥28.5 billion, second only to theprevious fiscal year’s record high.
Due to an increase in profit on JGBs and other debt securities,
a decrease in credit-related costs, and other factors, ordinary profit
increased by ¥1.0 billion year on year to ¥25.5 billion, and net
income increased by ¥0.6 billion year on year to ¥17.9 billion,
both representing increases in profits for the sixth consecutive
term.
Profit of customer services, one of the Group’s key performanceindicators for profits from the Bank’s main business, is also
increasing significantly. In FY2022, it stood at ¥15.3 billion, well
above the previous fiscal year’s ¥11.4 billion, reaching levels
exceeding ¥10 billion.

The Juroku Bank

Akihide Ishiguro, President(Deputy President, Juroku Financial Group, Inc.) rends in fees and commissions of theT
non-consolidated Juroku Bank

Performance for FY2022

Individual-related

While the Japanese economy in the current fiscal year continued
to be constrained in its economic activities by the COVID-19
global pandemic, in the corporate sector, capital investment,
which had stalled amid the pandemic, picked up due to
expectations for economic normalization and other factors. In
addition, as we look toward living with COVID-19, personal
consumption picked up moderately due to the return of flows ofpeople across the first major national holidays and New Year’s
period without restrictions on activities in three years.
In both Gifu and Aichi prefectures, which make up the main
business base of the Group, there have been signs of recovery inproduction and capital investment since the beginning of thecalendar year. However, the increased cost of purchased goods due
to high prices could not be fully passed on to sales prices, which
affected corporate earnings, especially those of small and mediumsized enterprises. Personal consumption, on the other hand,showed signs of recovery mainly in the lodging and dining services
industry due to increased human flow resulting from the easing ofrestrictions on activities.
In such an economic environment, the Group demonstrated its
comprehensive capabilities and made efforts to provide a broad
range of support to its customers amid the COVID-19 pandemic,
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 decreasedby ¥3.7 billion year on year to ¥74.5 billion, as net interest
income and other operating profit (excluding profit on JGBs andother debt securities) decreased due to increased foreign currency
funding costs at The Juroku Bank, despite an increase in fees andcommissions.
In addition, expenses including personnel expenses and nonpersonnel expenses decreased by ¥2.1 billion year on year to ¥43.9
billion. As a result, consolidated core net operating profit, which is

12

profits from our main business, amounted to ¥30.6 billion,
remaining at the ¥30.0 billion level as in the previous fiscal year.
Due to an increase in profit on JGBs and other debt securities,
a decrease in credit-related costs, and other factors, ordinary profit
increased by ¥0.5 billion year on year to ¥27.2 billion, and net
income attributable to owners of the parent increased by ¥1.5
billion year on year to ¥18.6 billion, both representing increases in
profits for the fifth consecutive term.

Summary of Consolidated Financial
Results of the Juroku Financial Group(Billions of Yen)

March
2023

(Year-onyear)

74.5

(3.7)

Net interest income

51.1

(3.2)

Fees and commissions

18.7

1.6

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

4.7

(2.0)

43.9

(2.1)

Personnel expenses

23.5

(1.2)

Non-personnel expenses

17.4

(0.9)

Consolidated core net operating profit

30.6

(1.5)

Profit on JGBs and other debt securities

(7.7)

3.1

Consolidated net business profit

22.9

1.6

Consolidated core gross operating profit

Expenses

Others(Billions of Yen)

10.0

9.8
3.5

5.0

11.1
2.9
2.0

12.6
2.8
2.7

1.9
4.4

6.1

March
2023

(Year-onyear)

Core gross operating profit

65.7

(2.7)

Net interest income

51.8

(2.7)

Fees and commissions

12.6

1.5

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

1.1

(1.5)

37.1

(2.3)

18.1

(1.4)

Expenses
Personnel expenses

16.3

(0.8)

Core net operating profit

Non-personnel expenses

28.5

(0.4)

Profit on JGBs and other debt securities

(7.7)

3.1

Net business profit

20.8

2.8

Credit-related costs

1.4

(1.1)

Profit on equities

3.6

(3.1)

Ordinary profit

25.5

1.0

Net income

17.9

0.6

7.1

Profit of customer services =Average loan balance x Deposit-loan interest rate difference +Fees & commissions – Operating expenses(Billions of Yen)

16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0

0.0
March 2021

March 2022

(Billions of Yen) rends in profit of customer services of theT
non-consolidated Juroku Bank

Corporate-related

15.0


The
Juroku Bank
Summary of non-consolidated results

+3.9
11.4
8.2

7.2
3.6

March
2019

March 2023

15.3

March
2020

March
2021

March
2022

March
2023

Business Projections for FY2023
In FY2023, although the earnings environment remains uncertain
due to the persistently high funding rates of foreign currencies, we
expect loan interest and fees and commissions to remain generally
firm as in FY2022. Meanwhile, due to a decrease in profit onequities and an increase in credit-related costs, we expect ordinary
profit of ¥24.5 billion, a decrease of ¥2.7 billion year on year, andnet income attributable to owners of the parent of ¥17.0 billion, adecrease of ¥1.6 billion year on year.

J uroku Financial Group
Consolidated Business Projection(Billions of Yen)

(Projected)(Year-onyear)

71.0

(3.5)

Net interest income

50.0

(1.1)

Fees and commissions

18.4

(0.3)

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

2.6

(2.1)

Consolidated core gross operating profit

March 2024

Credit-related costs

1.6

(1.2)

Expenses

44.0

0.1

Profit on equities

3.6

(2.9)

Consolidated core net operating profit

27.0

(3.6)

Ordinary profit

27.2

0.5

Ordinary profit

24.5

(2.7)

Net income attributable to owners of the parent

18.6

1.5

Net income attributable to owners of the parent

17.0

(1.6)

13

Shareholder Returns

Review of the 1st Management Plan
The Company’s basic policy is to pay stable dividends
continuously while striving to further improve its fiscal
robustness in the face of diversifying risks surrounding
financial transactions. In view of the business environment
and income levels, the Company has determined thatshareholder returns will aim to achieve a total payout ratioof at least 25%.
In FY2022, based on this approach, the Company paid
an annual dividend of ¥130, an increase of ¥10 from theprevious fiscal year. In addition, the Company acquired
treasury shares in November 2022. Together with this, thetotal payout ratio reached 31.6%.

The Group commenced the 1st Management Plan from October
2021.
Under the Plan, we have engaged in three management
strategies of the “Customer-first marketing strategy” to further
leverage our problem-solving power, the “DX strategy” toimprove usability and productivity, and the “Regional
commitment strategy” to handle regional total design, thereby
aiming to become a “comprehensive financial group that builds afuture with local communities and achieves sustainable growthwith local economies.”
As a result, all numerical targets were achieved in FY2022,
the final year of the Plan.
Additionally, “consolidated ROE,” which has been set as along-term indicator, has also expanded significantly, and theGroup’s profitability, fiscal integrity, and efficiency have also beensteadily improving.

VisionTo become a comprehensive financial group thatcreates the future of the community together andachieves sustainable growth together

Maximizing
groupsynergy

Dividends
March 2019

March 2020

March 2021

March 2022

March 2023

March 2024 (Projected)

¥70

¥80

¥90

¥120

¥130

¥130

Ordinary
dividend

¥35

¥35

¥35

¥50

¥50

¥60

Other

—

—

—

—

¥10
(Commemorative
dividend)—

Ordinary
dividend

¥35

¥35

¥45

¥50

¥70

¥70

Other

—

¥10
(Special dividend)¥10(Commemorative
dividend)¥20(Commemorative
dividend)——

Annual dividends

InterimEnd-of-year

Utilizingcustomerbase,
informationand network

Reforming
the thinking
and behaviorof ourofficers andemployees

Creating the future of the region together
Regional
commitment
strategy

DX strategy
Improve usability
and productivity

Regional
total design

Customer-firstmarketingstrategy
Further leverage ourproblem-solving
power(*) Figures before the interim of FY2021 are the actual dividends paid by The Juroku Bank

Trends in total dividends and total payout ratio(Millions of Yen)

(%)

7,000
6,000
5,000

Total payout ratio

24.5

23.2

22.8

32.3
1,111

31.6
1,111

4,000
3,000
2,000
1,000

2,615

2,989

3,363

March 2019

March 2020

March 2021

4,453

4,783

Numerical
target35.0(Billions of Yen)

Numerical
targetSecuring stable income

25.0
20.0

Total dividends

15.0

Acquisition ofown shares

10.0

17.1
Numerical target: ¥16.0 billion and above

14.7

March 2018

Reduction Policy of Cross-shareholdings

Numerical
targetTrends in cross-shareholdings (book value)

March 2020

March 2021

Consolidated adjusted OHR (%)

March 2022

March 2023

Numerical
target

Maintaining high efficiency(Billions of Yen)

90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

March 2019

9.15

9.08

March 2018

March 2019

Consolidated non-interest profit ratio(%)

Diversifying income sources

82.49

30.53

68.69

March
2009

March
2021

47.8

46.4

44.8

March September March
2022
2022
2023

March
2018

March
2019

March 2021

Long-term target

March 2023

Consolidated ROE (%)

Improving level year after year
31.44

Long-term target: 5% and above

March
2020

4.36
3.65

26.53

March
2021

4.73

3.98

66.51
58.87

34.9
March
2028

March 2020

29.10

Numerical target: 65% or less

50.3

March 2022

9.27

Numerical target: 30% and above

75.19
88.3

10.54

9.93

10.6

9.9

10.52
Numerical target: 10% and above

12.8

March 2023

The Group, since FY2009, has been engaged in efforts to reduce
its cross-shareholdings. Accordingly, the balance of crossshareholdings (book value) including listed and unlisted stock
decreased from ¥88.3 billion as of March 31, 2009, to ¥44.8
billion as of March 31, 2023.
In addition, we intend to further strengthen governance byreducing our cross-shareholdings (book value) based on the end of
September 2022 by approximately 25% by the end of March
2028.
Going forward, we will continue to promote dialogue with all
customers who hold listed cross-shareholdings, aligning with the
purpose of the Corporate Governance Code, and will continue toreduce our cross-shareholdings, taking into consideration theenvironment surrounding each of them.

(%)

18.6

0.0
March 2022

Consolidated capital adequacy ratio Maintaining high fiscal integrity

30.0

5.0

0

14

Consolidated net income

March
2022

58.90

March
2023

24.50
March
2018

2.94

24.04
March
2019

March
2020

March
2021

March
2022

March
2023

March
2018

3.05

March
2019

March
2020

March
2021

March
2022

March
2023

15

H istory of Juroku

June 2019

2022

March:
April:
April:

Juroku Tokai Tokyo Securities Co., Ltd.
commenced operations
2018

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 toa provider of comprehensive financial services to the region, and made a transition to a holding company structure. We arecontributing to the sustainable growth of the local community by demonstrating the Group’s comprehensive capabilities and solving
problems for customers and the local community.

March:March:

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

May:
May:

October 2027

Onward to the150th anniversary of
establishment

140th anniversary of establishment

1977

2015

March:

April:
Completed construction of the new Head OfficeJuly:Appointed female employee as Officer
March 1993
October: 100th anniversary of establishment
Established Shanghai
Representative Office

March:

Established Bangkok
Representative Office
Established Singapore
Representative Office

June 2013

Established Juroku Research Institute Co., Ltd.
September 2012

August 1985

Established Juroku Computer Service Co., Ltd.
(current Juroku Densan Digital Service Co., Ltd.)

Merged with The Gifu Bank

2020

April 1984

Established ourManagement Policy

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

April 1980

Founded our women’ stable tennis club

Head Office (Gifu-shi)
October 1897

Opened the first branch of Juroku Bankin Fumoto (current Kawaramachi, Gifu-shi)
March 1975

Established Juroku Lease Co., Ltd.

Fumoto (current Kawaramachi, Gifu-shi)

May:

October 2017

1896

March:

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

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

2010

1990

2023

April:
2020

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

2000

1980

August 1997

March 1994

Completed construction of Nagoya Building

April:
April:
April:
April:
April:

Establishment of Juroku Foundation for Regional Promotion

1970

July:

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.

2021

April:
Established NOBUNAGA Capital Village Co., Ltd.
August: Signed a basic agreement concerning consideration of joint venturebusiness 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 1982

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

1900

Unified logo

September 1972

June 2020:
Total deposits of ¥6 trillion

Listed on the First Section of the Tokyo Stock Exchange
April 1966

Establishment of Basic Policy and Action Guidelines
April 1931

Nagoya Building (Nagoya-shi)

Completed construction of the former Head Office
December 2010:
Total deposits of ¥4 trillion

February 1907

Hired female
employees forthe first time
Established as the
16th National Bank

December 2008:
Total loans of ¥3 trillion

September 1987:
Total deposits of ¥2 trillion
Former Head Office (Gifu-shi)

16

December 2016:
Total loans of ¥4 trillion

March 1990:
Total deposits of ¥3 trillion

October 1877

Meiji

December 2012:
Total deposits of ¥5 trillion

TaishoShowa

November 1989:
Total loans of ¥2 trillion
November 1983:
Total loans of ¥1 trillion

December 1979:
Total deposits of ¥1 trillion

HeiseiReiwa

17

P otential of the Local Community

See the figures

Juroku Financial Group’s main business areas are Gifu Prefecture and Aichi Prefecture. Thisregion has many distinctive local industries including automobiles, as well as cutlery,ceramics, and plastic products, and it is a bulwark of Japanese manufacturing. In the future,
there are plans for further infrastructure development such as the planned opening of thecompleted Tokai-Kanjo Expressway and the Linear Chuo Shinkansen (SCMAGLEV), as wellas the development of a support base to promote the creation and nurturing of startups andopen innovation, and greater economic benefits are expected.

Total area
(2022)

Gifu
Prefecture

New houses under construction(2022)

10,621

km2

10,9457th
Manufacture productshipment amountJapan’s foremost
manufacturing region

49,602.8 billion

Total ofboth prefectures: ¥Aichi Prefecture(Trillions of Yen)

60

5,614.9
43,987.9 billion 1st

Gifu
Prefecture:

Aichi
Prefecturebillion 19th

¥

5.4

5.9

5.9

5.6

4.8

5.1

42.0

43.8

46.0

44.9

47.0

48.7

47.9

43.9

59,255thousandpeople17th

houses4th

7,495

thousandpeople

4th

2013

2014

2015

2016

2017

2018

2019

2020

See projects
Construction of the Tokai-Kanjo Expressway

0• An expressway built to high standards, with a length of approximately 153
kilometers, spanning the three prefectures of Aichi, Gifu, and Mie.
• Expected to have stock effects, such as improving corporate activities,
making logistics more efficient, and revitalizing tourism.
• The full expressway is scheduled to open in 2026.
• The Tokai-Kanjo Expressway can also serve as a detour in the event oftraffic congestion or accidents on the Tomei, Meishin, Chuo, or
Tokai-Hokuriku Expressways, and as an alternative route in the event of alarge-scale disaster.

Source: Ministry of Economy, Trade and Industry, 2021 Economic Census for Business Activity

Gross prefectural product47,322.2 billion¥7,662.9 billion¥ 39,659.2 billion

Total ofboth prefectures: ¥Aichi
Prefecture:

km2

1,946

Gifu Prefecture
5.6

5.4

Gifu
Prefecture:

19th

27th

Aichi
Prefecture: ¥

40
20

5,173

housesPopulation (estimate)(2022)

Source: Gifu National Highway Office website

Launch of the Linear Chuo Shinkansen

Source: Cabinet Office, Prefectural Accounts (FY2020)

Gifu
Prefecture

Shinagawa

NagoyaShinagawa

Gifu Prefecture
Station(Nakatsugawa-shi)

Approx. 1 hour
30 minutes

40 minutes at
maximum speed

Approx. 2 hours and
30 minutes(Assuming stops at every station)

Approx. 60 minutes

Source: Central Japan Railway Company website

Stored hydroelectric power:

13,624 GWh

Development of STATION Ai

1st in Japan for the stored hydroelectric power thatcan be used for hydroelectric power generation
Source: Agency for Natural Resources and Energy website (2021)

53.5 billion

Ceramic /tile shipment amount: ¥Aichi
Prefecture

Accounts for approximately 57%
of the national market share.

Source: Ministry of Economy, Trade and Industry;
calculated by the Company based on the 2021 Economic Census
for Business Activity

44.0 billion

Household knife
shipment amount: ¥Accounts for approximately 48%of the national market share.

Source: Ministry of Economy, Trade and Industry;
calculated by the Company based on the 2021 Economic Census
for Business Activity

18

23,362.3 billion

Shipment amount of transportation machineryand equipment for the manufacturing industry: ¥1st in Japan

Source: Ministry of Economy, Trade and Industry, 2021 Economic Census for Business Activity• The largest incubation facility in Japan, scheduled to open in October
2024 in Showa-ku, Nagoya-shi.
• To promote the creation and nurturing of startups and open
innovation, this facility plans to provide a variety of support services
through collaboration with domestic and international startup support
organizations and universities.

Source: STATION Ai Corporation website

14,013.0 billion

Total exports from Nagoya Port: ¥1st among 5 major ports of Japan
Source: Ministry of Finance, Trade Statistics (2022)

19

I nitiatives for Sustainability
Formulation of the Sustainability Policy

Addressing Key Challenges (Materiality)

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

Key challenges

Initiatives

Sustainability Policy
The Juroku Financial Group recognizes sustainability initiatives to be an importantmanagement challenge. We will strive to solve various social issues such as climate change
through our core business of a “provider of comprehensive 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 sustainablegrowth and enhancing 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 tofuture generations

Revitalizationof the local
economyS upporting business foundation and new business
operations to foster future leaders of the local economySupporting local companies’ core business operations andmanagement succession to contribute to their growthSupporting asset formation to achieve enriched living

Sustainable
developmentof the local
community reating comfortable and appealing communities
CUsing local resources to create value that will benefit
future generations
Promoting digital transformation of local companies andlocal governments

Environmental
conservation andclimate change
actionsS upporting local companies’ carbon neutral business
management
Implementing initiatives for environmental conservationand environmental impact mitigation
Responding to climate change and disclosing
information in line with TCFD

Empowermentof diversehuman
resources uilding a corporate culture that boasts diversity as aBstrengthImplementing work style reform to provide a goodwork-life balanceCreating workplaces that facilitate the growth of diverse
human resources and empower them

To reinforce initiatives for sustainability, the Group has set Sustainability KPIs for five key challenges (Materiality).
All items are progressing smoothly.

Targets by FY2030
Revitalizationof thelocal economy

Item
Sustainable finances provided(including environment-related finances)
Balance of Group assets on deposit

Quantitative target¥2 trillion(¥800 billion)

March 2023 results (progress rate)(*)¥550 billion¥234.8 billion(¥85.9 billion)

11.7%(10.7%)¥363.9 billion

66.1%

Sustainable
development of thelocal community

Social impact investments¥2 billion(*)¥270 million

13.7%

DX-support consultation cases

3,000 cases(*)

126 cases

4.2%

Environmental
conservation and climatechange actions

CO2 emissions (vs. FY2013 level)

50% reduction

43.6% reduction

87.2%

Paper use (vs. FY2019 level)

50% reduction

17.3% reduction

34.6%

Ratio of female managers

20%

7.7%

38.8%

Ratio of paid leave claimed

80%

54.0%

67.6%

Empowerment ofdiverse humanresources(*) Cumulative total from April 2022

On-going targets
Key challenges
Advancedgovernance

Item
Initial response training for emergency
preparedness
Dialogue with investors

Quantitative target

March 2023 results (progress rate)

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

6 times300.0%

15 times

150.0%

Transition in Key Sustainability Initiatives and Response to Climate Change
February 2020
April 2021
June 2021
October 2021
March 2022
April 2022
May 2022
20

December 2022
March 2023

Enacted The Juroku Bank Group SDGs Declaration
The Juroku Bank newly established the SDGs Promotion Office
The Juroku Bank expressed support for the TCFD recommendations
The Juroku Financial Group established
Enacted the Juroku Financial Group SDGs Declaration
The Company expressed support for the TCFD recommendations
The Company newly established the Sustainability Management Office
The Juroku Bank upgraded the SDGs Promotion Office to the Sustainability Promotion Department
Newly established the Sustainability Council
Formulated the Sustainability Policy
Set Sustainability KPIs
Acquired a “B” rating in the CDP’s 2022 climate change questionnaire
Joined PCAF

Management

Key challenges

Business

Sustainability KPIs

Advancedgovernance

Advancing corporate governance
Strengthening risk management and compliance
Achieving stakeholder engagement21

E nvironmental 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 and demand 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

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
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, associatedTechnologies
Transitionalwith 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

Green loan and green private placement bond
These financing products limit the use of funds to those that contribute tosolving 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 andstakeholders.

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 areachieved. 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.

Offering

FY2021

FY2022

Total

Decarbonization consultation

47 cases

91 cases

138 cases

SBT certification support

2 cases

43 cases

45 cases

Decarbonization
consultation

Identifying the damage business
Identifying activities have done to the planet,
the status quo using an international standard
called the Greenhouse Gas Protocol
Identifying
Scope 1 and 2
emissions

Properly
disclosing
progressannually

Reducing/
Disclosing

Management integrated
emissions reduction/
disclosure activity

Setting thetargetSetting targets

Setting SBT
standard reduction (SBTi)targetPositive impact financeThis financing product comprehensively analyzes and evaluates the impact ofcorporate activities on either environmental, social, or economic aspects, andestablishes KPIs that contribute to creating positive impact and reducing
negative impact. We continue to support our customers’ efforts throughmonitoring of KPI achievement.

Furthermore, in February 2023, we began supporting the preparation of adecarbonization management transition plan, establishing an ongoingsupport system to help customers achieve carbon-neutral business
management.
*S BT stands for “Science Based Targets,” which are medium- to long-term
greenhouse gas emission reduction targets for companies that are consistent withthe levels required by the Paris Agreement and commit to a certain level of
reduction compared to a base year set by each company.

The Juroku Financial Group organizes climate change risk into four categories. For physical and transitional risks arising from climate

The Juroku Financial Group analyses risks and opportunities associated with climate change in the timeframes of “short term,” “mid-term”
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 tocreate business opportunities and reduce risks.

Risk

We support carbon management by providing consultation services tohelp 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 138 companies.
We are also working to support our customers in obtaining SBT
certification (for SMEs), and 45 companies have been certified with thesupport of the Juroku Financial Group.

Examples of risks associated with climate change<Strategy>
Opportunities and risks associated with climate change

22

Supporting local companies to achieve carbon neutrality

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

As stated in the Sustainability Policy, the Juroku Financial Group
ReportSupervise
recognizes sustainability initiatives (e.g. on climate change) as anGroup Management Council
important management challenge. “The Juroku Financial Group
SDGs Declaration” lists “revitalization of the local economy,”
Sustainability Council Chaired by the President“sustainable development of the local community,”
ReportInstruct“environmental conservation and climate change actions,”“empowerment of diverse human resources,” and “advanced
Sustainability Management Office
governance” as key challenges.
ReportOversee
In order to address these challenges appropriately, the Group
Sustainable Business
Environmental Conservation
D&I
Climate Change andhas set up the Sustainability Council, which is chaired by theWorking Group
Working Group
Working Group
TCFD Working Group
Response to climate change /Business
CO2 emissions reduction /President and consists of Group Management Council members,
Diversity andDisclosure based on TCFD
opportunity
Environmental
work-style reform
recommendations
initiatives
conservation
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 climate change and othersustainability issues, setting targets and checking progress), and reflects the results to management strategies and risk management. Therealso is a system in place to have items deliberated at this Council to be reported periodically to the Board of Directors at least once a year 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 discuss challenges thatline up with respective responsibilities and report details to the Sustainability Management Office.

Assessment item

Financing to solve environmental issues

change, the following examples are assumed.
Risk category

Credit risk

Short- to long-term
Short- to long-term
Short- to long-term
Short- to long-termMarket risk

Short- to long-termMid- to long-termMid- to long-termMid- to long-termMid- to long-term
Short- to long-term

Liquidity risk

Definition

Examples of physical risks

Risk of incurring losses due to the decrease orloss of asset value including off-balance assets
caused by deterioration of customers’
financial condition

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

Short- tolong-term

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
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
between investment and financing periods or
unexpected outflow of funds as well as risk of
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
Risk of incurring losses due to inappropriate

Operational risk business processes, activities of officers andemployees, or systems, or external events

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

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

Timeframe

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

Timeframe

Mid- tolong-term

Short- tolong-term

Short- tolong-term

Deterioration in the financing
environment and outflow ofdeposits due to deterioration in
the Group’s creditworthinessresulting from delays inaddressing climate change risk

Short- tolong-term

Short- tolong-term

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

Short- tolong-term

23

Environmental Conservation and Climate Change Actions<Risk Management>
Climate change risk identification and assessment process

Scenario analysis
The Juroku Financial Group conducts scenario analysis on physical risks and transitional risks in order to identify how climate-related risks
would affect the Group.
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 thefrequency of large-scale flooding due to climate change, and calculated theimpact of climate-attributable large flooding in Gifu and Aichi prefectureson 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.

Transitional risks
Following a qualitative analysis of sectors with large credit exposure andthe carbon-related sectors defined in the TCFD recommendations, we haveidentified the “electric power sector” and “automotive sector” as sectors ofsignificant transitional risks for the Group.
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 the impact
on the Group’s credit-related costs in view of the increased cost oftransition 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.

Physical risks
Scenario

IPCC/RCP8.5 scenario (4°C scenario)

Risk event

Analysis period

Large-scale flooding
Borrowers in Gifu/Aichi prefectures
Collateral of real estate (buildings) in Gifu/Aichi prefectures(excluding secured home loans)
Deterioration of business performance due to customers’
business suspension/stagnation
Damage to the Group’s real estate (buildings) collateral
Up to 2050

Analysis results

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

Analysis target

Analysis content

Transitional risks
IPCC/RCP2.6 scenario (2°C scenario)
IEA/NZE scenario (1.5°C scenario)
Transition to a decarbonized society

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
position and business performance, such as disrupting our business strategy and reducing profitability approximately within the nextyear, 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
momentum to address climate change, and we have implemented proactive management and risk control measures based on the risk
scenario of deteriorating business performance and business model obsolescence of the borrower due to delays in responding to climatechange and decarbonization.

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 capitalto enhance 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.

Formulating an investment and lending policy

Electric power sector
Automotive sector

The Group has the Investment and Lending Policy for the Creation of a Sustainable Society.

Deterioration of customers’ business performance due to cost
increase and sales decline
Up to 2050
Increase of credit costs: Cumulative total of approx. ¥2.5
billionBasic
policyThe Juroku Bank Group strives to contribute to medium- to long-term enhancement of corporate value and sustainablegrowth 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 asignificant risk or have a negative impact on the environment and society by subjecting any such investment and lending*IPCC: Intergovernmental Panel on Climate Change*IEA: International Energy Agency

to meticulous consideration.

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 to enhance

Sector-specific policies

the scenario analysis.

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

SectorRatio

Oil & gas

34,9400.7%

Electric power & utilities

41,8080.9%

Air transportation

18,243

0.4%

Marine transportation

2,771

0.1%

Land transportation

114,570

2.4%

Automotive

76,628

1.6%

Metals & mining

101,992

2.1%

Chemicals

24,3450.5%

Construction materials & capital goods

224,654

4.7%

Real estate management & development

415,410

8.7%

Beverages & food

59,156

1.2%

Agriculture

2,614

0.1%

Paper & forestry

32,0980.7%

1,149,230

23.9%

Total

24

Loan balance (Millions of Yen)

Coal-fired thermal
power generation

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 casesin response to emergencies or in projects in line with the Japanese government’s energy policy.

Weapons

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

Deforestation

The Group will not invest in or extend loans to projects that involve illegal logging or forest incineration.
Investment in / loan to projects whereby the fund is used for operations that involve deforestation will beconsidered carefully in view of their impact on the local economy and the environment.

25

Environmental Conservation and Climate Change Actions

Calculation of the CO2 emissions of investees and borrowers (scope 3 category 15)<Metrics and targets>
CO2 emissions results
The Juroku Financial Group has been working on the calculation of CO2 emissions, and from FY2022, it also calculates its supply chain
emissions (Scope 3) in addition to its own CO2 emissions (Scope 1 and 2).
CO2 emissions results (t-CO2)

CO2 emissions of investees and borrowers (Scope 3)
Calculation item

Scope 1

Direct emissions

Scope 2

Indirect emissions

FY2021

Total of Scope 1 and 2

Scope 3Since 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.
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, sophistication of
estimation, and other factors.

FY2022

Sector

1,375

1,369

Oil & gas

CO2 emissions (t-CO2)
107,352

6,504

6,020

Electric power & utilities

94,137

7,879

7,389

Air transportation

34,006

Category 1

Purchased goods and services

12,992

12,940Marine transportation

22,366

Category 2

Capital goods

5,005

3,615

Land transportation

254,592

Category 3

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

1,548

1,507

Automotive

Category 4

Upstream transportation and distribution

1,695

1,672

Metals & mining

Category 5

Waste generated in operations

50

53

Chemicals

95,884

Category 6

Business travel

146

174

Construction materials & capital goods

249,616

Category 7

Employee commuting

3,106

2,908

Real estate management & development

3,665

Upstream leased assets——

Beverages & foodDownstream transportation and distribution——

Agriculture

Category 10

Processing of sold products——

Paper & forestry

131,547

Category 11

Use of sold products

—

—

Other

685,312Category 12

End-of-life treatment of sold products——

Category 13

Downstream leased assets

383

426

Category 14

Franchises——

Category 15

Investments—

Listed on p. 27

24,92523,295

Total of categories 1 to 14

2,166,565

Data quality score

Reference date

17,441

8,984,277

Coverage

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)

Amount provided in FY2022¥2 trillion¥234.8 billion

11.7%¥800 billion¥85.9 billion

10.7%

Sustainable finances provided

Progress rate

(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

Support for environmental initiatives

10,8099,836(43.6)%

9,452
7,879

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

7,389

FY2022(50.0)%
6,555

FY2030Targets

Carbonneutrality
FY2050Targets

CO2 emissions in FY2022 were reduced by 43.6% compared to FY2013 and by 490 t-CO2 year on year. This was due to the effects of theintroduction of “Gifu Prefecture-generated CO2-free electricity” for use at Juroku Bank’s head office building in November 2021, in
addition to installing LED lighting in stores and replacing air-conditioning equipment with high-performance ones. We will continue ourefforts to reduce CO2 emissions by expanding the introduction of renewable energy electricity, introducing environmentally friendly stores,
and considering the conversion of company vehicles to hybrid vehicles (HVs) and electric vehicles (EVs).
The results for FY2021 have been verified by an independent third party after a review of the calculation method and refinement of thecalculation results.
26

Loan balance
As of March 31, 2023
Financial and emissions data of borrowers
Latest financial period data held by the Group as of March 31,
2023

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

Halve CO2 emissions by FY2023 from the FY2013 level and achieve carbon neutrality by FY2025

CO2 emissions(Scope 1 and 2)

3.6

98.0%
(Loan balance of calculated
counterparty/total loan balance)of which, environment-related finances

Targets*Factors such as company-disclosed data and CDP data are used for eachborrower’s emissions. When the data is unobtainable, estimations are
made using regional and sectoral emission factors per unit of sales takenfrom the PCAF database.
*Contribution level = The Group’s balance of loans/The borrower’s total
funding

Sustainable finance targets

The Juroku Bank Group’s CO2 emissions reduction targets and results
The Group set the following reduction targets on CO2 emissions (Scope 1 and 2) generated by its energy use and is working to achieve a
decarbonized society.

CO2 emissions
calculation method

28,225

Category 8Loans to domestic corporate clients (excluding loans to borrowers
with insufficient financial data)
CO2 emissions = (Emissions of each borrower x Contribution of
the Group’s loans)

5,093,569

Category 9

Total

Applicable assets

Acquired a “B” rating in the CDP’s 2022
climate change questionnaire
The Company received a “B” rating, the third highest of eight levels, in
the CDP’s 2022 climate change questionnaire.
The CDP is a British non-governmental organization (NGO) foundedin 2000 that operates a global disclosure system to help investors,
companies, nations, regions, and cities manage their environmental
impacts. By 2022, more than 18,700 companies, or half of the world’s
market capitalization, were disclosing data through the CDP, setting a
global standard for environmental information disclosure.

Joined PCAF
The Company joined the Partnership for Carbon Accounting Financials(PCAF) in March 2023.
PCAF is an international initiative launched to standardize themeasurement and disclosure of CO2 emissions of investees and borrowers,
and in November 2020, it developed the first global standardized
methodology, the Global GHG Accounting and Reporting Standard for the
Financial Industry (PCAF Standard).
PCAF has more than 400 member financial institutions worldwide.

27

Status of Audit by the Audit & Supervisory Committee

Corporate GovernanceCorporate Governance System
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
Shareholders Meeting
also in its auditing and supervisory functions.
Election / Dismissal
Election / Dismissal
By separately electing Executive Directors and Directors
Juroku Financial Group
AdviceManagement Advisory
who are Members of the Audit & Supervisory Committee, weCollaboration& Supervisory
Board
Board of Directors AuditCommittee
Counseling
have enhanced the audit system of Group-wide business
Audit & Supervisory
management and the supervision system of Executive
Group Management
Committee’s OfficeCouncil
DirectAudit
Directors by Members of the Audit & Supervisory
Order
Collaboration
Group Risk Compliance Meeting
ReportCommittee.
In addition, we are working to further enhance our
Audit
Collaboration
Group Administration
Group Corporate
Group DX
Group Risk
Group Sales
Group Management
corporate governance system by monitoring the status of
Sustainability
Management Division Planning Division Management Division Management Division Management Division
Audit Division
Management Officebusiness execution, the status of risk management, and theInstruct / Manage
Report / Discuss
Audit
compliance system of group companies, and striving to build
Group companies
a Group-wide business management system.
The Juroku Bank
Other subsidiaries
Audit
Group companies are striving for efficient business
Juroku Research Institute, Juroku TT Securities, Juroku Card, Juroku Lease
Instruct / Manage
Report / Discuss
Juroku Densan Digital Service, NOBUNAGA Succession
operations by preparing business plans based on Group-wide
NOBUNAGA Capital Village, Kanda Machi Okoshi
Subsidiaries of The Juroku Bank
Juroku Business Service, Juroku Credit Guarantee
management policies, and by making prompt management
decisions and speeding up business execution.
Personnel Affairs
Committee

Accounting Auditor

Compensation
Committee

Composition of the Board of Directors(as of June 30, 2023)

The Group strives to ensure that the Board of Directors has awell-balanced structure with diverse knowledge and expertise.
In order to enhance the objectivity and rationality of decisionmaking by the Board of Directors in addition to supervising
management, we appoint Independent Outside Directors so thatthey consist of more than one-third of the total number of
Directors.

Internal Directors

Outside Directors

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.
Each committee is chaired by an Outside Director, and the
majority of its members are from outside the Company. The
Committees provide advice on the matters shown in the table on
the right.

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 has all Directors conduct a self-evaluation based on a “Questionnaire regarding Effectiveness Evaluation of the Board of
Directors.” After compiling results of aggregating and analyzing the contents of these self-evaluations, the Board of Directors
deliberate on them following a consultation with the Management Advisory Board, which is an advisory body to the Board of
Directors.
The following is a summary of the results of the “Overall Effectiveness Evaluation of the Board of Directors” in FY2022.

28

As a result of aggregating and analyzing these self-evaluations, the Board of Directors of the Company confirmed that theeffectiveness of the Board of Directors has been secured as open and constructive discussions are being held from the perspective of
the entire Group and the medium- to long-term perspective.
We will continue with our efforts to provide timely and appropriate information and enhance discussions on important management
issues such as sustainability for the sustainable growth of the Group and the enhancement of corporate value over the medium- to longterm. Furthermore, we will fully exercise the functions of decision-making and supervision of the Board of Directors and further enhance
its effectiveness, by continuously reviewing the operation of the Board of Directors with Outside Officers.

The Audit & Supervisory Committee consists of three Members of the Audit & Supervisory Committee (one of the three is a full-timeMember of the Audit & Supervisory Committee, as of June 16, 2023), including two Members of the Audit & Supervisory Committee
who are Outside Directors, and meets once a month in principle. In addition, the Audit & Supervisory Committee’s Office has been
established to assist Members of the Audit & Supervisory Committee in their duties, thereby ensuring the objective monitoring andauditing functions of the management’s business execution.
In accordance with the audit policy, audit plan, and allocation of duties established by the Audit & Supervisory Committee, thefull-time Member of the Audit & Supervisory Committee audits the execution of duties by Directors by attending meetings of theBoard of Directors, Group Management Council, and other important meetings, inspecting important documents, and interviewing
Representative Directors and other Directors. Part-time Outside Members of the Audit & Supervisory Committee communicate andcollaborate with the full-time Member of the Audit & Supervisory Committee to conduct audits based on discussions at Audit &Supervisory Committee meetings and other meetings. The Audit & Supervisory Committee also reviews the status of the development
and operation of the internal control system, the decision on 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, theNo. ofNo. ofName
Position
meetings meetings
suitability for reappointment of the Accounting Auditor, and theheldattendedagreement on the amount of compensation for the Accounting Auditor, Naohiko Member of the Audit & Supervisory1111and exchanges opinions with the internal audit department and theCommittee (Full-time)
Ishikawa
Accounting Auditor in order to enhance the effectiveness of audits.
Shinji Member of the Audit & Supervisory
11
11
Committee (Outside)
Ishihara
In FY2022, the Company held 11 meetings of the Audit &Supervisory Committee, and the attendance of individual Members of
Satoe
Member of the Audit & Supervisory
11
11
Committee (Outside)
Tsuge
the Audit & Supervisory Committee is shown in the table to the right.

Risk Management Structure and Compliance System
Group-wide Risk Management Structure and Compliance System
We have established the Group Risk
Management Division to oversee risk
management and compliance, and areworking to improve the risk management
structure and compliance system of theGroup. In addition, we have organized theGroup Risk Compliance Meeting chairedby the President to grasp the status of risk
management and compliance within theGroup. The Meeting holds deliberations ordebates on analysis, evaluation, andimprovement activities for risk management
and compliance, and reports to anddiscusses with the Board of Directors on aregular basis and an irregular basis asnecessary.

Risk management structure / compliance system

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

Risk management and compliance-related policies and regulations, etc.

Juroku Financial Group

Group Management Council
Group Management
Audit Division<Whistleblowing system><<Integrated risk management / compliance divisions>>

Lawyers

Audit & Supervisory
Committee

Board of Directors

Group Risk Compliance MeetingGroup Risk Compliance Committee

Participate

Group companies

Group Risk Management Division

Audit
monitoring

The Juroku Bank
Integrated Risk Management Meeting
Integrated Risk Management Committee
Operational Risk Management Meeting
Compliance Meeting
Compliance Committee
Anti-Money Laundering Meeting

Audit
monitoring

ReportReportOther subsidiaries<<Integrated risk management / compliance divisions>>
Risk Management Division

Risk management /compliance divisions

ReportSubsidiaries of
The Juroku Bank

Risk management /compliance divisions

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

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

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

29

<Risk Management Structure>
Integrated Risk Management
Risk Appetite Framework
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”
through RAF management, and enable the pursuit of more
profit opportunities and more appropriate risk control. By
doing so, we are improving the effectiveness of our businessstrategies including management plans and comprehensive
budgets.

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

Risk appetite
Business strategy

Risk management

Credit Risk Management

Recognition of Top Risks
From the perspective of probability and degree of impact, the Group has chosen as top risks the “risk events that may have asignificant impact on our financial position and business performance, such as disrupting our business strategy and reducing
profitability approximately within the next year.” We are taking necessary measures in advance to control such risks, and striving
to manage them in order to respond dynamically even if they manifest.
The top risks selected by the Board of Directors in March 2023 are as follows:
Risk event

30

The Group has established the “Integrated Risk Management
Rules” for the purpose of ensuring the soundness of management and building an integrated risk management system.
We comprehensively track various risks with quantification
using statistical methods, and control these risks so that they arewithin the scope of our management abilities. The status of
integrated risks is managed by the Group Risk Management
Division, and reported to the Group Risk Compliance Meetingand the Group Risk Compliance Committee quarterly, as well as
the Board of Directors biannually, in principle, and we have astructure to flexibly implement necessary measures such as risk
control.

Risk scenario (example)

Deterioration of the global economic andfinancial environment due to anxiety
about the financial system andstrengthening hegemonism• Anxiety about the financial system, deterioration of the global economy triggered by hegemonic behavior
including the prolonged invasion of Ukraine, the Taiwan issue, and the U.S.-China friction, weak demand forfunds, and deterioration of the business conditions of borrowers• Fewer profit opportunities and higher credit-related costs due to deterioration of economic conditions in ouroperating bases, Gifu and Aichi prefectures

Impact of monetary policy changes inJapan and the U.S.

• Market fluctuation risk triggered by monetary policy developments in Japan and the U.S. (e.g., deterioration in
valuation gains and losses of securities, decline in fund management income, etc.)• Pressure on deposit and loan profit due to the continued monetary easing policy in Japan

Climate change risks• Deterioration of borrower performance and obsolescence of business models due to abnormal weather, climatechange, delayed response to decarbonization, etc.

Impact of severe infectious diseases• Delayed economic recovery following the COVID-19 pandemic and prolonged stagnation of economic activity
due to the emergence of new infectious diseases• Difficulty in maintaining business continuity

Large-scale disasters• Impact on the financial condition of the Group due to difficulty maintaining business continuity in the event of
the Nankai Trough Earthquake, etc., and from the deterioration of the business performance of borrowers
resulting from the ensuing turmoil in the local economy

Cyber-attacks• Functional failure, as well as large compensation for loss due to leakage of customer information or service
suspension

Rapid progress of DX• Customer attrition due to further entry to other businesses, intensified competition due to the emergence ofalternative services, and declining competitiveness due to delays in introducing digital services, etc.

Credit-related risks• Higher credit-related costs due to credit deterioration in real estate and other credit-intensive industries• High credit-related costs being incurred due to deterioration of the business performance or bankruptcy of large
borrowers• Increasing credit-related costs resulting from the decline of regional industries due to shortages of humanresources, their inability to change their business structure to adapt to the era, and other factors

Personnel and compliance risks• Impacted sustainable growth and business strategy of the Company and workplace control confusion, resulting
from accidents occurring to executive management• Decreased productivity, difficulty in continuing professional work due to insufficient education, outflow ofhuman resources, etc.
• Loss of credibility and customer attrition due to administrative sanctions by the Financial Services Agency,
scandals of officers and employees, media reports, and other factors, as a result of insufficient implementation of“Customer-oriented Business Operation Policy”

Inadequate response to antisocial forces
and anti-money laundering measures• Loss of credibility due to transactions with antisocial forces• Disciplinary actions such as business suspension orders, payment of surcharges, and loss of credibility due tofailure in anti-money laundering measures and violations of various foreign exchange laws and regulations

System failure risks• Loss of credibility, suspension of business operations, etc. due to inconvenience or disadvantage to customers
caused by large-scale system failures

Credit risk refers to the risk of incurring losses due to thedecrease or loss of asset value caused by the deterioration of thefinancial condition of borrowers.
As a prerequisite for credit risk management, we haveestablished a “credit rating system” which objectively evaluates
the degree of credit risk on a uniform scale. In addition to monitoring the credit risk management status of group companies
and the credit concentration risk of the whole Group, we also
discuss countermeasures with group companies as necessary.

Market Risk Management
Market risk refers to the risk of incurring losses from the fluctuation of the value of assets and liabilities, as a result of changes
in various market risk factors such as interest rates, foreignexchange rates, and stocks, as well as the risk of incurring losses
due to fluctuations in the income generated from assets andliabilities.
Based on our integrated risk management, our consolidated
subsidiaries that engage in the banking business allocate risk
capital by business (deposits and loans, cross-shareholdings,
securities other than cross-shareholdings, etc.) biannually. Ourconsolidated subsidiaries also set position management limits(maximum investment amount or holding amount), loss amountlimits, and negotiation points (levels of losses for reviewing
response policies). Their divisions in charge are conducting
market transactions flexibly and efficiently within these set risk
limits.

Liquidity Risk Management
Liquidity risk refers to funding risk and market liquidity risk.
Funding risk refers to the risk of difficulty in securing the necessary funds due to mismatches between investment and funding
periods or unexpected outflows of funds, as well as the risk of
incurring losses due to being forced to raise funds at significantly higher interest rates than usual. Market liquidity risk refers
to the risk of incurring losses due to market disturbances
making it impossible to trade in the market, or being forced to
trade at prices that are significantly more disadvantageous thanusual. We monitor the status of funding risk and liquidity risk
as well as matters that affect funding, and we have established astructure to respond quickly and appropriately even underunforeseen circumstances.

Operational Risks
Operational risk refers to the risk of incurring losses due toinappropriate business processes, activities of officers and employees, or systems, or external events. Each group company has
established “Operational Risk Management Rules,” and classifies and manages operational risks as administrative risk, systemrisk, legal risk, personnel risk, fixed asset risk, and reputationalrisk.
For administrative and system risks, which are important
categories among operational risks, we have drawn up thefollowing sub-policies and procedures.
■ Administrative Risk
Administrative risk refers to the risk of incurring losses because
of officers or employees neglecting to perform accurate administrative work, or causing accidents, committing fraud, etc. The
Group manages administrative risk through our own Administrative Risk Management Rules. While adapting to the growing
diversification and complexity of banking operations, ouradministration has become more rigorous in an effort to retainand strengthen the trust of our customers.
■ System Risk
System risk refers to the risk of incurring losses due to computer
system failure, malfunction and other errors or system flaws andother deficiencies, as well as the risk of incurring a loss due tothe improper use of computers. This includes “cyber securityrisk” that threatens the safety of computer systems and computer networks as a result of cyber-attacks.
The Group has established “System Risk Management
Rules” in order to deal with these system risks. By ensuring theeffectiveness of our system risk management system, we strive tomaintain sound and appropriate group operations, and strengthen our cyber security management system.
In response to cyber security incidents that are increasingly
becoming a threat, each group company has set up a CSIRT(Computer Security Incident Response Team). The CSIRT Secretariat of The Juroku Bank collaborates with the rest of theGroup to stay alert in ordinary times and to promptly respondto and solve any incident.

Crisis Management System
The Group places the highest priority on ensuring the safety ofhuman lives in the event of a crisis such as a major disaster or an
infectious disease epidemic. In order to continue business
operations necessary to maintain the functions of the financial
system, in addition to the risk management systems describedabove, we have established the “Rules on Business Continuity
Readiness and Management” and have established an appropriate crisis management system.

31

Customer Information Management

Compliance System
Compliance Structure
The Company has designated the Group Risk Management
Division to oversee compliance and manage the status of compliance for the entire Group.
Every fiscal year, the division formulates a Group Compliance Program, a concrete action plan for compliance, andconducts appropriate compliance risk management for the entire
Group.

In addition, the Group Risk Compliance Meeting and theGroup Risk Compliance Committee hold meetings regularly
and as needed, to confirm that the Group is properly practicing
compliance, and to deliberate and give instructions regarding
the compliance system. The Group Risk Compliance Committee reports to the Board of Directors on the content of theirdeliberations.

Internal Reporting System
The Company has established a whistleblowing system for theentire Group. In order to detect and correct compliance violations early on, the Company and other group companies haveeach set up whistleblowing contact points.
In addition to internal contact points, we are working toenhance and improve our whistleblowing system via designatedexternal lawyers as contact points for reporting and consultation.

We have appointed a Chief Whistleblowing Officer as thegeneral manager of the whistleblowing system, and are working
to raise awareness of the whistleblowing system among officers
and employees throughout the Group, while engaging in efforts
to enhance the system.

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 lossof information to external parties with regard to customer
information acquired by each group company. As such, we haveestablished the “Information Security Management Rules” toensure proper handling of customer information, and also

Initiatives to Prevent Money Laundering, etc.
There is a growing threat of international terrorism, and fund transfers by criminal organizations and terrorists are spreading andbecoming international. 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 the Group’s overall anti-money laundering, etc. measures, and eachgroup company 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.

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.

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

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.

■ 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 improvetheir 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.

Stakeholder Engagement
The Group emphasizes engagement with all stakeholders. We have progressed from taking action “for” our stakeholders to acting “with”
them.
In our “Group management philosophy,” we set the “Engagement Cycle” as our Code of Conduct, with the aim of taking on thechallenges faced by our customers and local communities, and resolving them together.

Designated dispute resolution organization
The Juroku Bank has concluded an agreement with the following designated dispute resolution organizations. By involving aneutral and fair third-party organization, we are appropriately
Contact for consultations, inquiries, opinions
and complaints about the Bank
Designated dispute resolution organizations
with which The Juroku Bank has anagreement

32

responding to the financial ADR system, which are procedures
intended for simple and swift dispute resolution without resorting to litigation.

[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

33

Overview of Juroku Financial GroupB oard of Directors and Audit & Supervisory Board Members
G roup Management Philosophy

The Juroku Financial Group, Inc. (as of June 30, 2023)

Our group management philosophy is inherited from the basic philosophy of The Juroku Bank, and represents thefundamental spirit of the Juroku Financial Group and the foundation for all of our officers’ and employees’ activities. It
consists of three parts: Mission, Vision, and Values. When putting our philosophy into practice, the specific conduct of
Yukio Murase
Naoki Ikeda
our staff is governed by the Code of Conduct.

Representative Director
and Chairman

Group

Representative Director
and President

Achieving growthand prosperity for

Missionour customers andthe local community

Management

We aspire to be a comprehensive
financial group that builds afuture with local communities
and achieves sustainablegrowth with local economies

Philosophy

in order to contribute to the realization of a

AkihideIshiguro
VisionDirector and Deputy
President

ValuesCode of
Conduct

Code of
Conduct

Yukiyasu Shiraki
Directorsustainable society.

Trust &
Integrity

Creation &Innovation

Diversity &Inclusion

We will act with integrity tosecure the trust and business of
our customers and the local
community

We will respond to every changewith innovation anddetermination, and create newvalue for the next generation.

We will maximize our group’s
strengths by embracing
individuality and leveraging
diversity.

Engagement Cycle
Taking on the challenges faced by our customers
and local communities, and resolving them together.

Yoshiaki Bito
Hiroyuki Ota
JurokuFinancial
Group:Creating
thefutureoftheregion together
Director
Director

G roup Structure
After
our transition
each group company
Ueda except joint ventures was made a
SatokoIto to a holding company structure, as a general rule,Yasushi
whollyowned
subsidiaryof
JurokuFinancial
Group
or
The
Juroku
Bank,
and
a
group
management system was established for the
Director
Director
purpose of strengthening consolidated profitability and group governance.

Naohiko Ishikawa(as of July 3, 2023)
Shinji Ishihara
Investment
Ratio
Director(Audit&Supervisory
Committee
Member)Director(Audit&Supervisory
Committee
Member)Business Lines
Juroku Financial Group(Financial Group / Bank)
SatoeThe
Tsuge
Koichi Banking
Tokoroservice
Juroku Bank
100%
Director (Audit&
Supervisory
Committee
Member)Managing
Executive
Officer
Clerical work service
Juroku Business Service Co., Ltd.
100%
Credit guaranty service
Juroku Credit Guarantee Co., Ltd.
100%
Tsutomu Niimi
Eiji Kodama
Managing
Executive
OfficerManaging
Executive
OfficerBusiness
consulting
service, Survey and research service
Juroku Research Institute Co., Ltd.
100%
Financial
instruments service
JurokuAsai
Tokai Tokyo Securities Co., Ltd.
60%
Hirotaka
Tomoatsu
Kaku
Executive
Officer
Creditcard
JurokuCard Co., Ltd.
100%
Executive Officer flotation service
Leasing
service
JurokuLease Co., Ltd.
100%
Takeshi
Kato
Motoyasu
Fukui
JurokuDensan Digital Service Co., Ltd.
60%
Executive
Officer
ExecutivePayments
Officerand digital solutions service
succession and M&A advisory service
NOBUNAGA
Succession Inc.
60%
TomokoShiozaki
Kyohei Management
Tanemura
and management of Investment business Limited partnership
NOBUNAGA
100%
Executive
Officer Capital Village Co., Ltd.
ExecutiveOperation
Officer
Kanda Machi Okoshi Co., Ltd.

34

99%

C orporate Data(as of March 31, 2023)

Date of Establishment:
October 1877
Authorized Shares:
46,000 thousand shares
Shares of Common Stock
Issued and Outstanding:
37,924 thousand shares
Stock Listed:Tokyo Stock Exchange Prime
Market and Nagoya Stock
Exchange Premier Market
Paid-in Capital:¥36,839 million
Number of Common Stock
Shareholders:
17,912
Number of Employees:
2,705Group companies
The Juroku Bank, Ltd.
8-26 Kandamachi, Gifu-shi+81-58-265-2111
Juroku Research Institute Co.,Ltd.
7-12 Kandamachi, Gifu-shi+81-58-266-1916
Juroku Tokai Tokyo Securities
Co., Ltd.
7-12 Kandamachi, Gifu-shi+81-58-266-4516
Juroku Card Co., Ltd.
7-12 Kandamachi, Gifu-shi+81-58-263-1116
Juroku Lease Co., Ltd.
7-12 Kandamachi, Gifu-shi+81-58-262-3116
Juroku Densan Digital Service
Co., Ltd.
7-12 Kandamachi, Gifu-shi+81-58-262-1116

NOBUNAGA Succession Inc.
7-12 Kandamachi, Gifu-shi+81-58-266-9161
NOBUNAGA Capital Village
Co., Ltd.
6-11-1 Kandamachi, Gifu-shi+81-58-264-5516
Kanda Machi Okoshi Co., Ltd.
6-11-1 Kandamachi, Gifu-shi+81-58-262-1613
Juroku Business Service Co.,Ltd.
34 Nakatakeyacho, Gifu-shi+81-58-266-2682
Juroku Credit Guarantee Co.,Ltd.
7-12 Kandamachi, Gifu-shi+81-58-266-1616

10 Principal Shareholders:
The Master Trust Bank ofJapan, Ltd. (Trust)
Custody Bank of Japan, Ltd.
(Trust)Juroku Financial Group
Employee Stockholding
Association
Fuji Baking Group Co., Ltd.
Meiji Yasuda Life Insurance
Company
Sompo Japan Insurance Inc.
Seino Holdings Co., Ltd
The Bank of Nagoya, Ltd.
JP MORGAN CHASE BANK
385781(Standing proxy: Settlement &Clearing Services Department,
Mizuho Bank, Ltd.)DFA INTL SMALL CAP
VALUE PORTFOLIO(Standing proxy: Citibank,N.A., Tokyo Branch)

Overseas Network
Shanghai Representative Office
18th Floor, Hang Seng Bank
Tower,
1000 Lujiazui Ring Road, Pudong
New Area,
Shanghai, People’s Republic ofChina
Telephone: +86-21-6841-1600
Facsimile: +86-21-6841-1881
Chief Representative
Kazuhiro Mitsuishi

Representative Office Registered in
Singapore
50 Raffles Place #38-06 Singapore Land Tower, Singapore
048623
Telephone: +65-6222-6616
Facsimile: +65-6532-6616
Chief Representative
Masahiko Takai

Hanoi Representative Office
Unit 1206, Pacific Place,
83B Ly Thuong Kiet Street,
Hoan Kiem District, Hanoi City,
Vietnam
Telephone: +84-24-3927-1616
Facsimile: +84-24-3927-1166
Chief Representative
Hiroyasu Kawahata

D irectory(as of June 30, 2023)

Head Office8-26, Kandamachi, Gifu-shi,
Gifu 500-8516, Japan
Telephone: +81-58-265-2111
Solutions Business DivisionInternational Office8-26, Kandamachi, Gifu-shi,
Gifu 500-8516, Japan P.O. Box 40
Telephone: +81-58-265-2111
Facsimile: +81-58-266-1698
SWIFT Address: JUROJPJ T
Head of Office
Yukiyasu Horie

Bangkok Representative Office
Unit 6 25th Floor CRC Tower, All
Seasons Place, 87/2 Wireless
Road, Lumpini, Phatumwan,
Bangkok, Thailand 10110
Telephone: +66-2655-8016
Facsimile: +66-2685-3016
Chief Representative
Osamu Matsuoka

Gifu Prefecture (106)Tokyo Branch
Aichi Prefecture (53)Mie Prefecture (1)Osaka Branch

Shanghai
Hanoi
Bangkok
Singapore

Total 162Domestic Offices

Consulting services related to local revitalization

35