Good morning, everyone. I am Yonemoto, President of The Chiba Bank. Without further ado, I will provide an
explanation based on the materials.

1

2

3

First, the summary of our financial results.
Although net interest income decreased by JPY3.7 billion YoY, net fees and commissions increased by JPY1.4
billion, reaching a record high. Additionally, with the effects of the previous year’s foreign bond losses fading,bond-related gains improved by JPY14.1 billion. As a result, gross business profit increased by JPY12.6 billion,
marking a new record high for the first time in 16 years since the fiscal year ended March 2008.
Core business income, excluding gains and losses from the cancellation of investment trusts, also increased
for the fifth consecutive year, reaching JPY87.4 billion, maintaining a strong performance.
Credit-related expenses increased by JPY5.5 billion YoY, due to the absence of large collection gains from theprevious year and some preventive provisions made for certain claims considering the current environment.
As a result, non-consolidated ordinary profit increased by JPY4.3 billion to JPY86 billion, and non-consolidated
net income increased by JPY2.4 billion to JPY60.5 billion. Consolidated net income increased by JPY2.1 billion
to JPY62.4 billion, setting a new record high for the second consecutive year.

4On the right side, we have the financial status of our subsidiaries. Chibagin Securities, primarily focused on
customer follow-up activities, recorded a slight loss.
Chibagin Guarantee saw a decrease in net income by JPY500 million YoY due to the absence of credit costreversals that occurred in the previous year. As a result, the bottom line difference between consolidated andnon-consolidated results narrowed by JPY200 million.

5

Net interest income decreased by JPY3.7 billion overall, primarily due to a reduction in gains from thecancellation of investment trusts.
In the domestic segment, interest on loans and deposits increased by JPY3.9 billion YoY, showing strong
performance. As shown in the graph on the bottom right, the negative impact of yield factors was eliminated,
and the increase due to volume factors directly contributed to net interest income.
However, due to a JPY4.1 billion decrease in gains from the cancellation of investment trusts, the overall
domestic net interest income increase was limited to JPY700 million. In the overseas segment, net interest
income decreased by JPY4.4 billion, mainly due to a reduction in gains from the cancellation of investment
trusts.

6

The balance of securities increased by 9% overall, due to an increase in the balance of foreign bonds impacted
by the depreciation of the yen, as well as an accumulation of yen-denominated bonds in Q4.
Amid significant fluctuations in domestic and international interest rates, we have utilized hedging
instruments such as interest rate swaps to control interest rate risk. As shown in the graph on the bottom
right, the valuation gain after considering hedging, including stocks, resulted in a total valuation gain of
JPY228.7 billion, an increase of JPY112.9 billion compared to the end of the previous fiscal year.

7Let me explain our foreign bond operations. In the previous fiscal year, in response to persistently highoverseas interest rates, we executed loss cuts primarily on low-yield US dollar–denominated bonds. At thesame time, we aimed to improve our portfolio by replacing them with high-yield bonds, resulting in a slight
positive spread for the overall foreign bond portfolio.
Overseas interest rates remain high, and our policy for this fiscal year is to focus on investing in floating-ratebonds.

8

Regarding yen bond investments, we aim to increase net interest income by appropriately controlling interest
rate risk and valuation gains and losses, and by capitalizing on rising interest rates.
In the previous fiscal year, we invested in long-term government bonds with asset swaps, and during periodsof rising interest rates, we increased our purchases of medium-term government bonds. As a result, the yieldon fixed-rate bonds rose from the lower 0.2% range to the mid-0.2% range. Moving forward, we plan tocontinue our investments cautiously, carefully monitoring interest rate trends.

9

Net fees and commissions reached JPY30 billion, marking a record high for the fourth consecutive year.
While investment trusts and personal annuities decreased by JPY300 million YoY, corporate solutions income
increased by JPY900 million to JPY16.6 billion, achieving a new record high and driving the overall increase.
Additionally, income from trusts, inheritance, and cashless operations also hit record highs, continuing toperform well.

10Regarding G&A expenses, personnel costs increased due to wage hikes, and property costs rose due tostrategic investments, resulting in a JPY2.5 billion increase.
As a result, the OHR slightly increased but remained below the 50% level. Toward the final year of the mediumterm management plan, we anticipate it will decrease to around 45%, driven by the effects of strategic
investments primarily on the top line.
We are advancing effective human capital investments that enhance profitability, and as shown in the bottom
right, although personnel expenses per employee are increasing, the growth in gross business profit per
employee is expected to surpass this significantly.
Moving forward, to maintain our low OHR, a strength of our bank, we will continue to manage costs
appropriately, including non-personal expenses.

11Credit-related expenses amounted to JPY5.8 billion. Due to preventive provisions made for certain claims, thisrepresents an increase of JPY5.5 billion YoY but is JPY1.1 billion less than planned, remaining within expectedlevels.
As shown in the graph on the top right, while the occurrence of non-performing loans continues to be
suppressed, the loan balance is steadily increasing. Consequently, the non-performing loan ratio decreased
by 0.01% to 0.92%, maintaining a healthy level.

12Under the stress scenario, the projected new occurrence amount for this fiscal year totals JPY12 billion.
Our performance plan for this fiscal year incorporates JPY10 billion of new downgrades. However, since
FY2021, the actual new downgrades, excluding preventive and advanced provisions, have only amounted toabout 40% to 70% of the projected amounts under the stress scenario, indicating a conservative plan.
We will continue to thoroughly engage in support efforts through solution review meetings and advisoryspecified corporation meetings, striving to control credit-related expenses.

13Let me explain our performance plan for this fiscal year.
We expect net interest income to increase by JPY9.3 billion, mainly due to domestic deposit and loan interest.
Additionally, net fees and commissions are projected to rise by JPY1.6 billion. Consequently, we anticipate a
top-line gross business profit increase of JPY14.7 billion, reaching JPY183 billion.
In preparation for the final year of our medium-term management plan, we plan to make strategic
expenditures on human capital investment and digital transformation (DX) investment, resulting in g&a
expenses increase of JPY3.4 billion.
Credit-related expenses are expected to increase by JPY1.6 billion, as mentioned earlier, reflecting a
conservative plan.
As a result, consolidated net income is projected to increase by JPY5.5 billion, reaching JPY68 billion, setting
a new record high for the third consecutive year.
It should be noted that this plan does not incorporate a policy interest rate hike. If such a hike occurs, it will
have a positive effect on our earnings. I will explain this in detail later.

14

15

It has been one year since the start of our current medium-term management plan, and there are no changes
in our future direction. We will continue to thoroughly manage with a focus on the Purpose and Vision as thecore of our management.

16

17

Due to changes in the environment, both upside and downside factors have emerged in achieving the bottomline target of JPY75 billion outlined in our medium-term management plan.
On the upside, we expect an increase in domestic net interest income, control of credit-related expenses, anincrease in gains on sales of stocks, and a reduction in pension liabilities due to rising long-term interest rates.
On the downside, we anticipate lower-than-planned progress in revenues from financial product sales andthe consolidated and non-consolidated difference. Additionally, we expect an increase in expenses due toexpanded human capital investments.

18

We have organized our initiatives for improving the P/B ratio into a logic tree. The corresponding initiatives
for each item are shown in the blue table on the right.

19

To enhance the P/B ratio, we will thoroughly explain our efforts to improve ROE through the enhancement of
RORA, the disclosure of non-financial information to reduce capital costs, our growth strategy for sustainableprofit growth, and the outlook on interest rate effects, as we have done this time.
As shown in the bottom right, if interest rates rise given the current P/E ratio level, achieving a P/B ratio above
one during the current medium-term management plan is within sight.

20

21

On the left side, you will see a graph that plots our asset and segment-specific RORA and OHR, as explained
six months ago. The arrows indicate the changes from FY2022 to FY2023.
Overall, both RORA improvement and OHR reduction have progressed across all segments and assets. This
improvement is due to the incorporation of rising interest rates and the strong performance of net fees andcommissions in the corporate segment.
For individuals, we are promoting the use of our app and cross-use strategies. For corporates, we arestrengthening corporate solutions. Overall, we will continue to achieve further improvements by thoroughly
implementing pricing strategies that capitalize on rising interest rates.

22

We are strategically advancing our initiatives to achieve a consolidated net income of JPY100 billion and an
ROE of 8% by FY2030.
Regarding the current rise in interest rates, we have calculated the impact on ROE under two scenarios. In
Scenario 2, we anticipate an ROE increase of plus 1.58% in the second year and plus 1.56% in the fifth year.
Under this scenario, an ROE of approximately 10% by FY2030 is within sight.

23

Let me explain the impact of rising interest rates.
We have conducted simulations for two scenarios: Scenario 1, where policy interest rates remain flat fromthe current level, and Scenario 2, where interest rates rise further.
For Scenario 1, we have revised our outlook based on the current interest rates. The profit increase in the
final year of the medium-term management plan is expected to be JPY2.8 billion in Scenario 1 and JPY26 billion
in Scenario 2. This translates to an ROE improvement of plus 1.58% in Scenario 2.

24

Let me explain our current situation in line with our strengths.
First, regarding our business foundation. As noted below the graph in the top left, the domestic loan yield has
reversed for the first time in 16 periods.
The loan execution amount for corporates, as noted in the bottom right, has exceeded the levels seen both
before and during the increased demand period of the COVID-19 pandemic over the past five years,
contributing to the increase in loans.

25

Loans increased by JPY610 billion, or 5% YoY, reaching JPY12.76 trillion. Loans to both SMEs and large
enterprises showed steady growth, and residential loans and other consumer loans also maintained their
upward trend.
As shown in the area-specific graph in the top right, growth was seen outside the prefecture, while we also
captured strong demand for funds within the prefecture.
Deposits, as indicated in the bottom right graph, also saw steady growth in both individual and corporate
segments, increasing by JPY500 billion, or 3.4%, to JPY15.95 trillion.

26

As shown in the table at the bottom right, the combined total of JPY4 trillion in residential loans and nearly
JPY3 trillion in loans to the real estate leasing industry results in approximately JPY7 trillion in secured loans,representing 57% of our total loans. This is significantly higher compared to megabanks and the average forregional banks.
Rigorous interest rate stress tests at the outset and conservative collateral valuation ratios contribute to ourlow credit-related expenses and support the stability of our lending operations.

27

The balance of residential loans continues to increase steadily.
Additionally, as shown in the table at the bottom left, the amount of executed residential loans has reached
its highest level compared to the past five years before the COVID-19 pandemic.
As indicated at the bottom right, over 90% of customers who have signed up for residential loans have also
applied for credit cards, debit cards, and our app. By enhancing customer satisfaction through these services,
we aim to further expand our transactions.
Furthermore, as an engagement enhancement initiative in collaboration with Sony Bank, we plan to hold an
exclusive music live event for residential loan users.

28

The balance of unsecured loans, which are high RORA assets, is also steadily increasing. The expansion of
convenient, non–face-to-face transactions, such as in-app loans, has contributed to this increase in balance.

29

For our bank, a strong branch network is a differentiating asset that sets us apart from other banks andcontributes to the steady increase in both the non-recurring and recurring balances of loans.
Within the prefecture, we maintain comprehensive branches capable of handling corporate loans, and ourshare of comprehensive branches in the prefecture has risen to about 60%. Additionally, we are further
strengthening our operations outside the prefecture by upgrading Mito (Ibaraki Prefecture) and Hamamatsucho (Tokyo) to branch status and establishing the Shinjuku West Corporate Banking Office (Tokyo) in June.

30

Next, let me explain the second strength, our financial foundation.
Our bank’s OHR is lower than that of megabanks, enabling highly cost-efficient operations, and our nonperforming loan ratio remains low.
Supported by this robust financial structure, our CET1 ratio stands at 11.87% based on the balance sheet asof March 2024, with the full implementation of Basel III finalization basis excluding unrealized gains/losses on
securities. Despite conducting total returns exceeding 50%, we are able to maintain a sufficiently high level.

31

Let me explain our capital management and utilization.
As announced with our financial results, we plan to increase the dividend per share by JPY4, marking the firsttime we have announced a JPY4 increase as of May. This will raise the dividend ratio to an estimated 37.6%.
With our CET1 ratio target range set between 10.5% and 11.5%, simulations indicate that, considering future
profit accumulation, normal risk asset growth, an annual JPY4 dividend increase, and JPY10 billion in sharebuybacks, the CET1 ratio as of March 2029, with the full implementation of Basel III finalization, is projected
to exceed 12%.
In the long term, capital exceeding this range will amount to approximately JPY75 billion. As shown in thebottom left, we plan to utilize this excess capital for further risk asset accumulation, additional strategic
system investments to build up intangible fixed assets, growth investments through inorganic investments,and strengthening returns to shareholders.

32Over the past five years, our total shareholder return (TSR) has outperformed the TOPIX average and theaverage of top regional banks. Additionally, our dividend growth rate over the past five years is 100%,exceeding the average of the three megabanks. We will continue to strengthen this performance going
forward.
Regarding cross-shareholdings on the right side, in line with the policy outlined in our Corporate Governance
Report, we have been reducing these holdings. The ratio of cross-shareholdings to consolidated net assets
has decreased from 19.9% to approximately 17%.
Moving forward, we will only hold shares that have recognized significance, such as contributing to thedevelopment of the regional economy and enhancing our corporate value. We will continue to reduce theseholdings and aim to bring the ratio below 15% in the near future through ongoing negotiations.

33

The TSUBASA Alliance, a consortium of leading regional banks, has demonstrated top-line improvements andcost-reduction effects through collaborations in various fields, starting with fundamental systems.
Regarding fundamental systems, The Toho Bank implemented our system this January, expanding the allianceto five banks. We will continue to deepen our collaborative framework going forward.

34

The Chiba-Musashino Alliance has smoothly progressed into Phase II, steadily achieving its partnership effecttargets.
In the Chiba-Yokohama Partnership, the cumulative effect of the initial five-year plan significantly exceeded
the JPY20 billion target, reaching JPY35.9 billion.
With the newly announced five-year plan, we aim to enhance our presence in the Tokyo metropolitan area
by creating value for our customers in a wide range of areas beyond just the sales division. The target effectamount is set at JPY25 billion, surpassing the previous plan’s target of JPY20 billion, and we are aiming foreven greater achievements.

35

As announced in March, we launched the TSUBASA JUUDANKAI Joint Research Group. This Group has
established task forces in three areas: systems, operational efficiency, and cyber security, to advance joint
research.
Regarding our collaboration with Sony Bank, as noted on the right, we have established various
subcommittees to continue discussions at the field level, yielding concrete results.
In April, we installed a “large naked-eye stereoscopic display” in the Innovation Lounge. This allows for an
immersive 3D experience without the need for special glasses, as if you were physically present. We aim todeliver information about various financial services with enhanced realism.

36

37

This month, the number of app registrants exceeded 1 million, which is equivalent to one in three active
accounts. Due to the app’s widespread adoption, a significant portion of transactions has shifted to the app,with approximately 30% to 40% of transactions now conducted via the app.
As noted in the bottom left, as app usage has increased, the number of outgoing transfers has risen, and fees
have increased by 25% compared to three years ago.
The cost per outgoing transfer is approximately JPY890 at a branch and JPY19 via the app. Compared to branchtransactions, transfers via the app incur significantly lower costs. This example demonstrates how
digitalization, as a means of transformation, lowers unit costs while expanding transaction volumes, positively
impacting revenue.
Going forward, by leveraging data analysis and AI, we aim to enhance the customer experience so that
customers feel that “Chiba Bank provides timely face-to-face proposals or app notifications when I need them”
and “Chiba Bank understands me well.” This will help us increase the number of fans of our bank group.
As a result of these efforts, we expect to enjoy economic benefits such as expanded cross-use, improved
productivity, and further increases in gross business profit per employee.

38In our retail business sector, we aim to increase gross business profit per customer by expanding our digital
customer base and utilizing data to enhance customer insights, thereby promoting the use of our products
and services.
As shown in the bottom right, we plan to achieve total revenue of JPY43.9 billion, combining both digital andnon-digital channels, by the final year of our medium-term management plan. This represents a JPY6.0 billion
increase during the plan period, and currently, we are ahead of schedule with an increase of JPY2.1 billion.

39

Let me explain our financial product sales in the retail segment.
Starting in October, we removed individual revenue targets for financial product sales and shifted to an
evaluation system that emphasizes FD and activity levels.
As noted in the bottom left, the non–face-to-face ratio for investment trust sales increased from 20% before
the business improvement order to over 50%, and the number of effective meetings more than doubled.
Although annual revenue from managed assets decreased by JPY300 million, as previously explained, grossprofit in the retail segment overall increased by JPY2.1 billion. This increase was driven by comprehensive
consulting services in areas such as inheritance, trusts, and cashless operations, which have compensated forthe decline.
Moreover, in Q4, investment trust sales revenue turned positive YoY, indicating that our business is steadily
moving in a positive direction.

40

As shown in the top left, the proportion of recurring revenue from financial products has reached 61%,aligning with our strategic direction.
Additionally, as indicated in the table on the right, with the steadily increasing elderly population in theprefecture, our trust and inheritance-related services have been growing robustly, achieving record highprofits for 14 consecutive periods.

41

For corporate clients, similar to our approach with individuals, we aim to enhance gross profit through a hybridof digital and physical channels.
By increasing the set rate of the corporate portal and securing digital touchpoints, including for non-borrowing
clients, we aim to transition these clients from non-borrowing to borrowing categories. This will help us
increase overall gross profit.

42

Corporate solutions-related revenue has achieved record high profits for 13 consecutive periods.
In addition to strong finance-related revenue, primarily from syndicate loans and other products, we willcontinue to focus on non-finance revenue to improve RORA.

43

Corporate advisory have been steadily growing, with an increasing number of digitalization projects each year.

44For M&A and business succession, we plan to establish a new buyout fund that can hold 100% of the sharesof target companies. This will enable us to provide hands-on support for growth, revitalization, and succession,
thereby increasing the number of projects we can undertake.

45

46

47

As shown in the graph on the left, the number of cardholders, franchise locations, and transaction volumes
across the entire group continue to increase steadily.

48

Next, let me explain our new business initiatives.
In the energy sector, shown in the bottom right, we acquired the Kimitsu Power Plant in April. Combined with
our first Asahi Power Plant, the annual power generation now amounts to approximately 35% of the total
electricity consumption of our group.

49Regarding the regional trading company Chibagin Market, we achieved profitability in the third year asplanned. We will continue to accelerate our efforts beyond STEP 2.

50

In the advertising business, we began offering services at all branches starting in October. Since the launch,demand has exceeded expectations, and we believe that achieving a gross business profit of JPY300 million
by the final year of the medium-term management plan is well within reach.

51

At the bottom left, regarding the real estate fund, we are expanding our pipeline and considering various
projects to enhance our solutions.
On the right, in our joint business plan with Google Cloud, we are working on advancing “One to One
Marketing.”

52

53

Our app continuously implements new features and improvements, steadily enhancing its convenience.
As shown in the bottom left graph, the penetration rate among the population under 34 years old in Chiba
Prefecture is approximately 20%. By the final year of the medium-term management plan, this ratio is
expected to rise to about one-third.

54

The number of contracts for the corporate portal has steadily increased to approximately 40,000. By the final
year of the medium-term management plan, we aim to raise the current penetration rate of just under 60%
among loan clients to 70%, increasing the total number of contracts, including both loan and deposit clients,
to 60,000.

55

Next, let me explain our approach to human capital.
Our human capital development policy is defined as “Become someone who keeps fighting for the customer.”
We have defined three core elements for this policy: “Think things through,” “Utilize your own strengths,”and “Gain more supporters.”

56

Centered around our human capital development policy, we are advancing various initiatives in five areas:
career development, job satisfaction, diverse organization, unified group management, and human resources
portfolio.
As indicated, the various KPIs are progressing as planned. As shown in the bottom right, the net businessincome per employee is expected to improve by approximately JPY3 million annually. We will continue toenhance productivity per employee going forward.

57

We are advancing human capital development at twice the rate of the previous medium-term management
plan. Additionally, we are establishing a specialist career track, creating a system for transfers from groupcompanies, and implementing wage increases for different hierarchical levels.

58

As noted in the top right, the human resources recruited as a unified group joined us in April.
Additionally, we plan to implement the talent management system introduced in the bank across all groupcompanies to develop unified HR policies throughout the Group.

59

60

61

To achieve carbon neutrality by 2031, we are further strengthening our efforts in sustainable finance.
The annual power generation from renewable energy–related loans and project finance is equivalent to theenergy needs of 550,000 households in Chiba Prefecture, which is about 20% of the 2.8 million households inthe prefecture.

62

We are advancing the disclosure of Scope 3, Category 15, which pertains to our investments and lending.
Currently, we have disclosed 86.9% of our investment and loan amounts. In the integrated report scheduled
for July 2024, we will continue to expand the information we provide.

63

64

To strengthen our governance, we plan to appoint a new outside director at the shareholders’ meeting in
June. This will increase the number of independent outside directors to four, raising the ratio to 44%.
The new outside director candidate, Mr. Yoshizawa, has extensive experience as a financial institution rating
analyst at S&P Global Ratings and is expected to bring valuable expertise to our board.

65

66

Regarding the progress of our business improvement plan, let me reiterate our Purpose: “To create a local
community better suited to bringing each person’s hope to life.”
To continuously demonstrate this purpose to society, we have established our Vision as “An Engagement Bank
Group that works closely with the community.”
We use the Purpose and Vision as the core of our management and as a guiding principle for each officer andemployee’s decisions. We are committed to regaining the trust of our customers and all stakeholders.

67

We are addressing the root causes identified in three areas: issues with the incentive mechanism in “Business
Operation System,” problems in “Internal Control System,” and issues in “Business Management System.” We
are implementing the measures outlined to tackle these problems.

68As a result of implementing various measures, significant changes have occurred in our business practices.
For example, as shown in the top left, the launch of our app for investment trusts, which we had been
considering for some time, led to an increase in non–face-to-face sales from 22% to 53%.
As noted below, the shift to activity volume targets has resulted in a doubling of the number of meetings, andthe sales results of financial products in Q4 turned positive YoY.
Although revenue from sales of financial products decreased by 6% YoY, overall revenue in the retail businessincreased by JPY2.1 billion due to advances in proposals for inheritance, trusts, and cashless operations
outside of financial product sales.
On the right side, we are focused on collecting feedback both internally and externally. Internally, we gather
input through engagement surveys and hearings conducted by the Purpose and Vision Penetrate Project Teamto capture voices from the field. Externally, we collect customer feedback through NPS surveys and CX
indicators for quantitative evaluation, direct interviews with customers by head office staff, and advanced
analysis of customer feedback.
This concludes my presentation. Thank you very much.

69

70

71

72

73

74

75