thSummaryof11
Summary of 11th Medium-term
Medium-term

BusinessBusiness Plan
Plan (FY2011(FY2011 -- FY2013)
FY2013)「Being best partner that goes along with our customers」～Strategic plan for strong management base ‘J-CUBE’ ～Mission1

Being
Beingbest
bestpartner
partnerthat
thatgoesgoesalong
alongwithwithour
ourcustomers.
customers.
Subjects in 10th medium-term business plan
･Increase profitability in the area of channel expansion and new
financial products･Further pursuit of deep customer relationships･Optimal channel management(channel linkage, efficient channel
strategy）･Strengthening investment capability for stable profitability･Thorough Business Process Re-engineering･Increase liaison staff at front office, training employees

Business environment･Development of traffic infrastructure and active cross bordereconomic activity･Government’s growth strategy（environment, energy, health,tourism）

信頼向上へ３つのCを実践･Monetary surplus in private sector and shortage in public sector

Consultationenterprise takeover） Convenience （ 高 い 利 便 性 ）Compliance （ 高 い 規 範 意 識 ）･Development of IT revolution（高い相談能力）･Decreasing population, increasing elder population（inheritance,･Change of regulations and systems from global view point･（Damage from the Great East Japan Earthquake）

Considering the subjects and environment

Being best partner that goes along with our customers

Mission～Through offering sophisticated financial services,
contribute to our customers and region’s revival and development ～Summary of plan2

By
Byproviding
providingthe
thegroup’sgroup’scomprehensive
comprehensivefinancial
financialfunctions,functions,wewecontributecontributeto
toaarevival
revivalandandrestoration
restorationof
ofour
ourcustomers
customersand
andourourregions,regions,havinghavingtrust
trustwithwithour
ourcustomers.
customers.

11th Medium - term Business Plan

FY2013 targets (end of plan)◆Name of the plan

【Profits】

Strategic plan for a strong management base・Gross business profit≧ ¥１２０ billion‘J-CUBE’・Core business income≧ ¥ ５０ billion◆Time frame・Net income after tax（non consolidated）

３ years （FY2011 - 2013）◆Mission≧ ¥２５ billion
・ Net income after tax（consolidated）≧ ¥２７ billion

Being best partner that goes along with our customers～Through offering sophisticated financial services,
contribute to our customers and region’s revival anddevelopment ～◆Basic strategies○Through expanding our customer procurement base,contribute to regional revival and development.
○Through improvement of employees’ capability atfront, build a stable and sound management base.
○Through enhancement of personnel capability,
strengthen the power of the organization as a whole.

【Efficiency indices】
・OHR（Core net business income basis）
Middle of ５０％
・ROE

Middle of ５％【Soundness index】
・Core TierⅠratio

c.１２％

Basic strategies and supporting key strategies

3AttainAttainthe
themissionmissionthroughthroughexecuting
executing66important
important key
keystrategies
strategiessupporting
supporting33basic
basic
strategies.
strategies.

6 important key strategies
Basic strategies①Expand customer procurement base and strengthen support

Increase customer baseleads to contribution to recovery anddevelopment of the area

for customer development②Strengthen investment capability③Improve employees’ capability at front

Improvement of employees at front
leads to sound management base

④Optimal sales channel management⑤Improve risk taking capability

Enhancement of personnel capability
leads to strong power of organization⑥Enhance personnel capability

Key strategy① Expand customer baseand strengthen support for customer development

4

ThroughThroughpresence
presenceexpansion
expansionand
anddepth
depthpursuit,pursuit,aim
aimto
toenhanceenhancecustomer
customerprocurement
procurement
base.
Based
on
strongcustomer
base,
contributetorevivalanddevelopmentbase. Based on strong customer base, contribute to revival and developmentof
ofcustomers’
customers’life
lifeandandcorporate
corporateactivities.
activities.
Expand customer procurement base【 Ibaraki area 】 Strategies by region【Tokyo/Osaka】

Area

Regions for depth pursuit

Regions for presence expansion

Strengthen RM, increase core customers◆Expand customer base throughincrease in number of housing loans andcorporate clients.

◆Sustain/deepen relationship withlarge corporate in Tokyo

Method◆Strengthen promotions without draft◆Enhance private customers’ base
based on life time value◆Expand corporate customer base byindustrial life stages

・Establish new channels
・Strengthen web sights to attract to branches
・Increase personnel to key areas◆Expand customer basepromoting sales to Ibaraki relatedcompanies and mid-sizedcompanies

・Smooth support of revival of life and corporate activities
・Change of organizational structure based on regional strategies
・Improve CS

Strengthen development support【Private】◆Proper response to investment andtakeover needs【Corporate】◆Strengthening promotions indeveloping area and industries◆Training employees with financial professional skill◆Seek to change HQ’s organizational structure【Public】◆Strengthening
partnershipKey strategy② Strengthen investment capability

5

Increase
Increaseprofit
profitthroughthroughstrengthening
strengtheningloan
loansales
salesandandinvestment
investmentcapabilitycapabilityaiming
aimingforfor
stablestableprofitability.
profitability.

【Strengthen loan procurement base】
Area

Regions for depth pursuit◆Stable supply of funding torevive local economy◆Increase housing loans andapartment loans

Method【Ibaraki area】
Regions for presence expansion◆Increase housing loans andapartment loans◆Cultivate potential core
corporate customers◆Strengthen consumer loansales◆Reinforcing wholesale
procurement base

【Tokyo/Osaka】
Strengthen RM, increase core customers◆Cultivate medium sizedcompanies to broaden
core customer base

◆Sustain and strengthencloser relationship withlarge companies throughutilizing multi-meeting
opportunities【Strengthen investment capability】
・Increase profit through further portfolio
revitalization○Improve investment skills in financial market○Improve research skill for corporate bonds
Further risk taking based on sufficient risk control

Key strategy③ Improve employees’ capability at front

6Through
ThroughBPR,
BPR,increasing
increasingefficiency
efficiencyof
ofoperation
operationand
andsliming
slimingdown
downheadquarters.
headquarters.
Improve
Improveemployees’
employees’capability
capabilityatatfront
frontbybyincreasing
increasingsales
salesstaffs
staffsandandworking
workingtime.
time.
Human resources

BPR project ‘ZERO’

3,500

Drastic decrease in operation,execution of efficiency andcorrectness⇒increase sales staffs and working time at
front
・Improve process of operation andcategorization
Abolition/downsizing, centralized operation,internalization, IT utilization, improvement
in complex operation
・Sales support
Develop support tools,closer linkage
between systems
・Small headquarters
Decrease overlapped fields and inefficient
operation

Improve problem solving capability【 T o tal e m plo ye e s】
c . 3,400（人）

3,000

210

220570610

Others

BPR in HQ a nd
oper a t ion cent er

2,500

440690Back office

250
2,000

HQ,operation center150

OTC(client asset)
Front

1,500
1,000

Sh ift 3 0 0 pe ople toprofitable se c tion

500
0

1,930

1,730

FY2010FY2013

Enhance personnel【 Improve employees’ capability at front 】

capability

strategy⑥
Change of corporate structure
１．Organizational structure based on regional differences
２．Improve infrastructure for strengthening comprehensive financialfunction, consulting function, and custody operation.

Key strategy④ Optimal sales channel management

7By
Byoptimizing
optimizingchannel
channelnetwork,
network,closer
closerlinkages
linkagesamong
amongchannels,channels,strong
stronginternet
internetbanking,banking,fulfill
fulfillcustomers’
customers’various
variousfinancial
financialdemands.
demands.
Optimizing channel network management

Closer linkage among channels
Branches（Sales force ・OTC）【Efficiency】
Efficient channel
management inrelatively mature anddeliberate region【Expansion】
Increase new branches
and loan specializedchannels⇒Increase liaison officers
in presence driven area⇒Expand presence inIbaraki area

Ties

○Attract customers through marketing○Increase interest and needs through DM etc.

ATMMobile
・internet

Optimal mixture of channels
and strengthening functions

Call center
SME loan center

WebKey strategy⑤ Improve risk take capability

8To
Tobuildbuildsoundsoundmanagement
managementbase,base,improve
improverisk
risktaking
takingcapability
capabilitybased
basedononsufficientsufficientrisk
riskcontrol.
control.
・Activate risk communication

Active risk control, internal risk communication,

・Verify and strengthen BCM
administration

strengthen BCM administration

・Renovate internal project committee forresponding to Basel Ⅲand IFRS properlyetc.

Linkage among sales activity, loan assessment
and credit monitoring（Loan assessment procedure to know customers well）

Proposal for solution

Monitor customers

Absorb information /needs【Decide consolidated policy to our customers】

Loan assessments

Grasp business problem

Key strategy⑥ Enhance personnel capability

9

Supporting
Supportingstaffs’
staffs’career
careerdevelopment,
development,allocating
allocatingemployees
employeesaccording
accordingto
totheir
theirskills
skillsandaptitude,offering
opportunities
totakechallenges.
and aptitude, offering opportunities to take challenges.

Enhance personnel capability

Increase opportunities

Brewing organizational climate

Support employees’

to take challenge

for personnel training

autonomic growth■Proper person to proper place■Improve work place environment■Activate personnel exchanges
among the group■Personnel training inconsolidated base■Secure the number of key
persons in next generation■Enhancement of Office Job
Training and strengthen personneltraining■Enhancement of Off-JT

New personnel system・New personnel evaluation system

10Financial
Financial targets
targets andand strategies
strategies

Business Targets （Bank, non consolidated）
・Core・Coregross
grossbusinessbusinessprofit
profit≧≧¥120¥120billion
billion

11・Core・Corenet
netbusinessbusinessincome
income≧≧50billion
50billion

・Net・Netincome
incomeafter
aftertax(nontax(nonconsolidated)consolidated)≧≧¥25billion¥25billion ・・Net
Netincomeincomeafter
aftertax(consolidated)
tax(consolidated)≧≧¥27billion¥27billion【Change of ordinary profit】
・Core gross business profit ¥120bn, core net business income ¥50bn,FY2010

FY2013
Targets\115.8 billion≧\120 billion\98.9 billion
Net interest incomefees and commissions \11.3 billion
Core gross business profit \111.3 billion\69.6 billion
Expenses
Core net business income \41.7 billion\18.9 billion
Ordinary profit\12.9 billion
Net income after tax≧\102 billion≧\18 billion≧\120 billion≧\70 billion≧\50 billion≧\40 billion≧\25 billion\20.7 billion≧\10 billion

Gross business profit

Net credit costs

ordinary profit ¥40 bnOthers+￥1.9ｂｎ
Net credit cost△￥10.7ｂｎ

gains or losses
on bonds △\ 1.3bn

FY2013
Ordinaryprofit target\ 40.0bn+¥21.1bn
Fees andcommisions+\6.7bn

FY2010Ordinaryprofit\ 18.9 bn

Net interest
income+\3.1bn

Gross income increase plan

12

ExpandExpandgross
grossprofit
profit‘top-line’‘top-line’bybyExpanding
Expandingpresence
presenceand
anddeepening
deepeningof
ofdealings.
dealings.
（Y bn）

Core grossincome140.0Core grossincome120.0≧¥120billion○Increase interest income
・Through presence expansion and depth pursuit,aim for stable increase in balance of loans and deposits.
<Regions for presence expansion>¥111.3billion

Housing loans, expansion of customer procurement base
100.0

based on increase in the number of corporate with loans.
<Regions for depth pursuit>
Interest income

80.0+３.１bn60.0

Net interest
incomeinterest incomeNet≧102bn
interest
income≧102bnUtilizing settlement service, strengthen cross selling both toconsumer and corporate customers
・Increase profit through securities portfolio revitalization.

98.9bn○Increase fees and commissions

40.0

・Pursuing depth of relation, enhance newly developed areas
such as securities and insurance.

20.0

0.0

Fees andcommissions

Fees and commission

11.3bn+６.７bnFY2010Fees andcommissions
Fees and Comm億≧18bn≧18.0bn

FY2013
Target・Through closer linkage among channels and increase in
number of staffs, aim to improve sales promotion.
<Private>Strengthen promotion for investment product sales
through EBM approaches.
<Corporate>Attract settlement activities and strengthen
multi product sales.

Increase loan portfolio

13

Attract corporate loans by broadening customer procurement base and responding to clients’industrial life stage.
Increase housing loans through new branches, more sales force and effective actions.
○Corporate loans（Average balance）（Y bn）○Residential loans（Average balance）
1 ,2 0 0 .0Ibaraki and its adjoining areas

2,000

Tokyo and Osaka

1,800
1,600

1 ,0 0 0 .0
1,508

1,498
1,157

1,439
1,142

9 2 0 .4

9 5 6 .4

1 ,1 0 5 .0

9 9 9 .1

1,515

1,400
1,200

Re side n tial m o rtgage
Apartm e n t c o n stru c tio n lo an s（Y bn）

1,159

1,000800

Ibaraki andits adjoining
地元areas+760億円+\76bn1,250

400200Re side n tialm o rtgage+ \ 1 0 6 bn

6 0 0 .0
4 0 0 .0

Tokyo and都内大阪
Osaka+\91bn+910億円600

8 0 0 .03 0 3 .7

3 1 4 .9

3 2 0 .7

2 0 0 .0

3 7 2 .0

Apartm e n tc o n stru c tio nlo an s+ \ 5 1 bn0 .00
FY2008FY2009FY2010FY2013
Target【Targets】 Average loan balance in the bank’s region(excluding Tokyo and Osaka.
At end of FY2013 ¥3.2 trillion (+¥0.3trillion compared with FY2010)【Strategies】
・Increasing the number of corporate clients and expanding customer base
Increase sales staffs in key areas
・Responding to founding demands derived from clients’ industrial life stage
Offering various funding methods, business matching,supporting foreign business operations
・Focus more on developing areas
Agriculture, manufacturing, medical, care, health, environment, energy
・Offering sophisticated financial services by all of Joyo group companies
Leasing, takeover, efficiency through IT, various proposals

FY2 0 0 8

FY2 0 0 9

FY2 0 1 0

FY2 0 1 3Targe t【Targets】 Residential loans to execute
3 year period ¥550 bn【Strategies】
・New branch establishment
Establish new loan plaza to respond to financing demands outside Ibaraki.
Strategically allocate additional sales force through BPR to key areas
Strengthen approaches to housing makers, personnel training

・Enhancement of action plans
Broaden product line-ups, attract customers through web sight, meet refinancing
demands

Increase investment product sales（Investment trusts, insurance

14etc.）

Increase profit through improving employees’ capability at front and multi-channel
linkage.
○Sales of Investment trusts and Insurance products
120

Investment trusts
Annuity and Whole-life insurance（Y bn）○Balance of Client asset custody

100
Investmenttrusts+\75bn60

47.6
34.2 36.7

47.335.4

27.6

20500.0

311.3
300.0

Annuity andWhole-life
insurance+\44bn5 37.0
500.0

273.5

266.6

2 83.0

313.9

218.9

In ve stm e n t
tru sts+ \ 2 1 7 bn
An n u ity an d
W h o le - life
in su ran c e+ \ 2 2 3 bn

200.0
100.0
0.0

FY2008FY2009FY2010FY2013
TargetF Y2008○Fees from Investment product sales

Investment
trusts+\2.4bn

3.5
2.6

2.5

2.3

2.2
1.7

1.5

1.5

1.7

1.0

3.0

Annuity andWhole-life
insurance+\1.4bn0.5
0.0
FY2008FY2009

FY2010F Y2010

F Y2013
Ta rge t※including foreign deposit and OTC JGBs

4.84.54.0

F Y2009【Targets】 Balance of Joyo group’s customer assets（※）
At end of Mar 2014 1.6trillion (+0.5trillion compared with 2011)

Investment trusts
Annuity and Whole-life insurance（Y bn）
5.0

2.0

A nnuity a nd W hole-life insu ra nce

400.003.0

Inv estm ent trusts

600.0

91.0

8040（ Y bn）

110.0

FY2013
Target【Strategies】
・Improve employees’ capability at front
Reallocate employees from back office to front through BPR
Personnel training and utilization of SFAs
・Close linkage among sales channels
Effective mixture of channels
Attract customers to branches and buy products under channel linkage
・Utilize subsidiaries
Enhance proposals through mutual relationship between bank andsecurities company

Inquiries related to this presentation should be addressed toThe Joyo Bank, Ltd.
Corporate Planning Division
Investor Relations
TEL : (81)29-300-2603
FAX : (81)29-300-2602
e-mail : ir@joyobank.co.jp
http://www.joyobank.co.jp/

This material contains forward-looking statements. These statements are not be represented as providing aguarantee of the Bank’s future performance, and actual results may be subject to risks and uncertainties.
Please note that future performance may differ from the views presented here owing to changes in the operating
environment and other factors. Information contained herein may be changed or revised without prior notice.
Copyright© 2011 The Joyo Bank, Ltd.
This document may not be reproduced or distributed to any third party without prior written consent to The Joyo
Bank, Ltd.