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

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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
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osp
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conomic
val
ing e
ue
eat
Cr

ng social val
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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

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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.

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