O perational and Financial Highlights

The Juroku Bank, the core company of the Group, reported
expansion in fees and commissions as a result of record highs inindividual-related revenues and corporate-related revenues, inaddition to increases in net interest income, resulting in core grossoperating profit of ¥68.4 billion, an increase of ¥6.2 billion year
on year.
Additionally, due to a decrease in expenses of ¥1.3 billion year
on year to ¥39.4 billion, core net operating profit increased by¥7.4 billion year on year to ¥28.9 billion, which reached a recordhigh.
Ordinary profit increased by ¥2.0 billion year on year to ¥24.5billion, and net income increased by ¥3.2 billion to ¥17.3 billion,
both representing increases in profits for the fifth consecutiveterm.
Profit of customer services, one of the Group’s key performanceindicators for profits from the Bank’s main business, is also
increasing steadily.
In FY2021, profit of customer services increased by ¥3.2
billion year on year to ¥11.4 billion, reaching levels exceeding ¥10billion.

 rends in fees and commissions of theTnon-consolidated Juroku BankThe Juroku Bank

Akihide Ishiguro, President

Individual-related(Deputy President, Juroku Financial Group, Inc.)

Corporate-related

Others15.0

The Japanese economy in the current fiscal year remained in adifficult situation, as was the case in the previous fiscal year, due tothe impact of the COVID-19 global pandemic.
In both Gifu and Aichi prefectures, which make up the main
business base of the Bank, strong downward pressure continued toprevail in the personal consumption of services such as lodgingand dining. In the corporate sector, production and exports of theautomobile-related industry, which is concentrated in this area,
remained at a standstill. Meanwhile, the soaring prices of naturalresources and raw materials also adversely affected corporate
earnings.
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 increased by¥7.0 billion year on year to ¥78.2 billion.
In addition, expenses including personnel expenses and nonpersonnel expenses decreased by ¥1.4 billion year on year to ¥46.0billion. As a result, consolidated core net operating profit
increased significantly by ¥8.3 billion year on year to ¥32.1billion.
Although consolidated net business profit decreased, as aresult of reporting a realized loss on the portion of thedeteriorating valuation gains and losses of securities reflecting therise in U.S. interest rates since the beginning of the calendar year,ordinary profit increased by ¥2.1 billion year on year to ¥26.7
billion, and net income attributable to owners of the parent
increased by ¥2.4 billion year on year to ¥17.1 billion, both
representing increases in profits for the fourth consecutive term.
1210.6

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

March
2022

(Year-onyear)

78.2

7.0

Net interest income

54.3

3.8

Fees and commissions

17.1

1.6

Other operating profit (Excluding profit onJBGs and other debt securities)

6.71.646.0(1.4)

Personnel expenses

24.7(0.8)

Non-personnel expenses

18.3(0.5)

Consolidated core net operating profit

32.1

8.3

Profit on JGBs and other debt securities(10.8)(10.8)

Consolidated net business profit

21.3

(2.6)

Credit-related costs

2.8(1.4)

Profit on equities

6.5

2.0

Ordinary profit

26.7

2.1

Net income attributable to owners of the parent

17.1

2.4

Consolidated core gross operating profit

Expenses(*) The Juroku Financial Group was established on October 1, 2021. As such, thefinancial results for FY2021 contain the financial results for the six months
ended September 30, 2021 of The Juroku Bank, which became a wholly-owned
subsidiary through a sole-share transfer. The year-on-year figures represent thecomparison with the consolidated financial results of the Juroku Bank Group,
which has The Juroku, as the parent company.

10.0

5.0

9.8

3.8

3.5

1.7

1.9

5.0

4.4

March 2020

March 2021

(Billions of Yen)

March2022(Year-onyear)

Core gross operating profit

68.4

6.2

Net interest income

54.5

3.7

Fees and commissions

11.1

1.3Other operating profit (Excluding profit onJBGs and other debt securities)

2.6

1.1

39.4

(1.3)

Personnel expenses

19.5(1.4)

Non-personnel expenses

Expenses

17.1

0.1

Core net operating profit

28.9

7.4

Profit on JGBs and other debt securities(10.8)(10.8)Net business profit

18.0

(3.5)

Credit-related costs

2.5(1.6)

Profit on equities

6.7

2.2

Ordinary profit

24.5

2.0

Net income

17.3

3.2

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

Performance for FY2021

 he Juroku BankT
Summary of non-consolidated results

11.1
2.9
2.0
6.1

0.0

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

12.0
10.0
8.0
6.0
4.0
2.0
0.0
(2.0)
(4.0)

In FY2022, based on conservative estimates of credit-related costs
and estimated decreases in profit on equities, we expect Group
consolidated ordinary profit of ¥25.5 billion, a decrease of ¥1.2billion year on year. Meanwhile, net income attributable to ownersof the parent is expected to increase by ¥0.4 billion year on year to¥17.5 billion, due to the contribution of consolidated interests inthe Group companies throughout the year.

11.4

3.6

(3.0)
March
2018

March 2022

Business Projections for FY2022

7.2

+3.2
8.2

March
2019

March2020J uroku Financial Group
Consolidated Business Projection
Consolidated core gross operating profit

March2021

March2022(Billions of Yen)

March 2023 (Year-onyear)(projection)
72.4(5.8)

Net interest income

49.6(4.7)

Fees and commissions

17.50.4Other operating profit (Excluding profit onJBGs and other debt securities)

5.3(1.4)

45.9

(0.1)

Personnel expenses

24.6(0.1)

Non-personnel expenses

Expenses

18.3

0.0

Consolidated core net operating profit

26.5

(5.6)

Ordinary profit

25.5(1.2)

Net income attributable to owners of the parent

17.5

0.4

13

Progress of the 1st Management Plan

Shareholder Returns

VisionThe Group commenced the 1st Management Plan from October

We aspire to become a “comprehensive financial groupthat builds a future with local communities andachieves sustainable growth with local economies” inpartnerships with our customers and the region.

2021.
Under the Plan, we will engage in three management
strategies of the “Customer-first marketing strategy” to further
leverage our problem-solving power, the “DX strategy” to improve

As disclosed in its “Juroku Financial Group’s Shareholder
Return Policy” at its founding, the Company’s basic policy
is to pay stable dividends continuously while striving tofurther improve its fiscal robustness in the face ofdiversifying risks surrounding financial transactions. In

usability and productivity, and the “Regional commitment

view of the business environment and income levels, thestrategy” to handle regional total design, thereby aiming toCompany has determined that shareholder returns will aim

become a “comprehensive financial group that builds a future withto achieve a total payout ratio of at least 25%.
Maximizing
groupsynergy

local communities and achieves sustainable growth with localeconomies.”

In FY2021, in consideration of the completion of a shift
to a holding company structure on October 1, 2021, theUtilizing
customerbase,
informationand networkReforming
the thinking
and behaviorof ourofficers andemployees

As a result of engaging in business activities based on the 1st
Management Plan, we exceeded the numerical targets for“consolidated net income,” “consolidated capital adequacy ratio,”“consolidated adjusted OHR,” and “consolidated non-interest

Additionally, “consolidated ROE,” which has been set as aRegional
commitment
strategy

DX strategy

long-term indicator has also been rising each year, while

Improve usability
and productivity

profitability, fiscal integrity, and efficiency, which form theNumericaltargets

Consolidated net income Securing good profitability(Billions of Yen)

(%)

14.7

March 2019

March 2020

March 2021

March 2022

9.08

March 2018

March 2019

March2022

¥80

¥90

¥120

¥35

¥35

¥35

¥35

¥35

¥45

¥50

¥50

Other—

Consolidated adjusted OHR (%)

Numericaltargets

Securing high efficiency

Consolidated non-interest profit ratio (%)

Achieved numerical targets

82.49

March 2020

March 2021

March 2022

Long-term targets

Consolidated ROE (%)

Long-term target: 5% and above

4.36

Numerical target: 30% and above

75.19

29.10
68.69

3.98
3.6566.51

26.53

Numerical target: 65% or lessMarch201814

March2019

March2020

March2021

58.87

24.50

March2022

March2018

2.94

24.04
March2019

Total payout ratio (consolidated)

(%)

35.0

32.3

30.0

24.5

23.2

22.8

25.0

1,111

4,000

20.0

3,000

15.0

2,000

¥10
¥20(Commemorative (Commemorativedividend)
dividend)

2,615

2,989

3,363

March 2020

March 2021

4,453

10.0
5.0

00.0
March 2019

March 2022

9.27

Improving levels year after year

30.53

Acquisition of own shares

6,000

1,000

¥10(Specialdividend)

Reduction of Cross-shareholdings
The Group, since FY2009, has been engaged in efforts to reduce

Numericaltargets

Total dividends(Millions of Yen)(*) Figures before the interim of FY2021 are the actual dividends paid by The
Juroku Bank

9.93
9.15

¥70End-ofyear

Numerical target: 10% and above

10.6

9.9

Ordinary
dividend

Consolidated capital adequacy ratio Maintaining high fiscal integrity

10.52

12.8

March
2021

5,000
Ordinary
Interimdividend

17.1
Numerical target: ¥16.0 billion and above

March
2020

7,000
Annual dividends

Further leverage ourproblem-solving
power

Trends in total dividends and total payout ratio (consolidated)
March2019

Regional
total design

Customer-firstmarketingstrategy

management foundation, have also been steadily improving.

March 2018

comprising the ordinary dividend and a commemorative dividend of ¥20. Together with the acquisition of treasury shares, the total payout

Dividends

time in FY2021.

Numerical
targets

interim dividend for FY2021 paid by The Juroku Bank and the year-end dividend paid by the Juroku Financial Group for FY2021) of ¥120
ratio reached 32.3% on a consolidated basis.

Creating the future of the region together

profit ratio” set for FY2022, the final year of the Plan, ahead ofCompany paid an annual dividend (the total amount of theits cross-shareholdings. Accordingly, the balance of cross-(Billions of Yen)

90.0

shareholdings including listed and unlisted stock decreased from80.0¥88.3 billion as of March 31, 2009, to ¥47.8 billion as of March

70.031, 2022.

60.0

In addition, since FY2012, we have been verifying the50.0

profitability of cross-shareholdings based on the risks and returns

40.0of holding these stocks while reviewing our shareholding policy.

30.0

Going forward, we will continue to reduce our cross-

3.05

Trends in cross-shareholdings (book value)

shareholdings, aligning with the purpose of the Corporate

88.3

54.9

54.2

52.7

50.3

47.8

20.0
March
2009

March
2018

March
2019

March
2020

March
2021

March
2022

Governance Code.
March
2020

March
2021

March
2022

March
2018

March
2019

March
2020

March
2021

March
2022

15