PressRelease
May 12, 2023
FIDEA Holdings Co. Ltd.

Announcement of Fifth Medium-term Management PlanFIDEA Holdings Co. Ltd. (President & CEO: Masahiro Niino; hereinafter, “FIDEA”) hereby
announces that we have formulated the Fifth Medium-term Management Plan for three years fromFY2023 to FY2025.
In FY2020, FIDEA started the preceding plan, the Fourth Medium-term Management Plan.
With “Your reliable consulting bank with a fountain of wisdom” as a slogan, we turned profitable interms of net business profit of customer services section, through initiatives to strengthen the topline profit, reform cost structure, create an ideal working environment and take actions on theFIDEA Group SDGs Declaration. During that period, while proceeding with making improvements
to create a more resilient management structure, we achieved our target level of consolidated net
income and successfully completed prepayment of public funds in February 2023.
Yamagata and Akita Prefectures, our operating base, have structural problems including
declining and aging populations. Furthermore, the surrounding business environment is becoming
harsher as a result of rising prices for energy and goods.
In the Fifth Medium-term Management Plan, in conjunction with honing our own consulting
skills and deepening customer support, we will conduct initiatives to further strengthen ourmanagement foundation and aim to make contributions to building sustainable local region.

1. NameFifth Medium-term Management Plan
2. Plan period
FY2023 to FY2025 (Three years)
3. Slogan
Transform to build sustainable local region<<Deepening customer support and strengthening our management foundation
for the prosperous future of the Tohoku region>>

3-1-24 Chuo, Aoba-ku Sendai-shi, Miyagi-ken, 980-0021 Japanht t p: / / www. f idea. co. j p/
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PressRelease
4. Basic Policy
Achieve improvements in customer satisfaction (CS) and shareholder value by deepening
customer support and strengthening our management foundation
i. Boost our customer support capabilities
ii. Take actions on sustainability managementiii. Revamp group’s investment portfolio
iv. Reform the cost structure
v. Improve employee satisfaction (ES)vi. Develop more sophisticated governance structure
5. Target Indicators➢Target for FY2025: Net Income (Profit attributable to owners of parent): around 4 billion yen➢

Target for FY2025: Expand ordinary profit of customer services section (for total of two banks)➢To aim for a long-term target of ROE exceeding 5% (on a Group consolidated basis)###3-1-24 Chuo, Aoba-ku Sendai-shi, Miyagi-ken, 980-0021 Japanht t p: / / www. f idea. co. j p/2 / 2

May 12, 2023

FIDEA Group Fifth Medium-term Management Plan

Transform to Build a Sustainable Local Region- Deepening customer support and strengthening our management foundation
for the prosperous future of the Tohoku region Shonai Bank

Hokuto Bank

Outline of the Fifth Medium-term Management Plan

1

Transform to build a sustainable local region
Theme

Plan period

Basicpolicy

Targetindicators- Deepening customer support and strengthening our managementfoundation for the prosperous future of the Tohoku region -FY2023 to FY2025 (Three years)➢ Achieve improvements in customer satisfaction (CS) and shareholder value by
deepening customer support and strengthening our management foundation
1. Boost our customer support capabilities
2. Take actions on sustainability management
3. Revamp group’s investment portfolio
4. Reform the cost structure
5. Improve employee satisfaction (ES)6. Develop more sophisticated governance structure➢ Target for FY2025: Net income (profit attributable to owners of parent): around 4 billion
yen➢ Target for FY2025: Expand ordinary profit of the customer services section* (for total oftwo banks)➢ To aim for the long-term target of ROE exceeding 5% (on a Group consolidated basis)* Ordinary profit of customer services section: “Net business profit of customer services section” (“gross profit in
the customer services section” minus “related expenses”) minus “credit-related expenses”
FIDEA HOLDINGS CO. LTD.

Fourth Medium-term Management Plan: Growth and results (comparison with theresults of FY2019, which was before the start of the plan)2⚫ While proceeding with making progress in cost structure reforms, the net business profit of the customer services section
turned profitable one year ahead of the plan. Although the financial market became unstable due to the situation in Ukraine
and the impact of COVID-19, the investment section performed almost as planned as the entire group, and we achieved 3
billion yen, the target of consolidated net income.
*Units: billion yen: Other than consolidated items, 2 banks total

Net income (profit attributable toowners of parent)

+1.9

5

+2.5
14

3.2

32

Net business profit of customer
services section

0(1)

1.3

(2)

10

(1.7)

(3)

FY2019FY2022FY2019Fees and commissions profit(consolidated)
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0

0.8

+0.7

5.2

4.5

(0.1)

5.7

FY2019

Capital adequacy ratio(consolidated)

5.6

FY2022Business loan balance+112.510.00%
9.00%

9.20%

700
600

8.24%

619.9
507.4

500
400

7.00% Excluding approximately 11billion yen of the total acquisition
price of preferred shares

300

6.00%
FY20226543210

FY20228.00%

FY2019Investment section ordinary profit

FY2019200
FY2022FY2019FY2022FIDEA HOLDINGS CO. LTD.

Direction of the Fifth Medium-term Management Plan3⚫ For the Fifth Medium-term Management Plan, we will focus on the further accumulation of interest on loans and profit fromfees and commissions to make the ordinary profit of the customer services section profitable. At the same time, for theinvestment section, we will improve profitability by rebuilding our securities portfolio.
Third Medium-termManagement Plan
FY2017 to FY2019
Consulting & Innovation

Ordinary profitof investment section

Fourth Medium-termManagement Plan
FY2020 to FY2022

Fifth Medium-termManagement Plan
FY2023 to FY2025

Your reliable consulting bank witha fountain of wisdom

Transform to build asustainable local region<Target indicators of the Fifth Medium-termManagement Plan>◼ Target for FY2025: Consolidated net income: around 4billion yen◼ Target for FY2025: Expand the ordinary profit of thecustomer services section◼ Long-term target ROE level: over 5%

Sixth Medium-termManagement Plan
FY2026 to FY2028

Establish a stable profit
structure and build asustainable local region<Target indicators of the Fourth Medium-termManagement Plan>⚫ Achieve consolidated net income of 3 billion yen ormore⚫ Achieve becoming profitable of the net business profitof the customer services section ahead of the plan.
⚫ Achieve a 9% range of capital adequacy ratio after
repayment of public funds, complete prepayment ofpublic funds

Ordinary profitof customer
services section±0Net businessprofit ofcustomer
services section±0

Turned profitableahead of the plan

FIDEA HOLDINGS CO. LTD.

Fifth Medium-term Management Plan: Practical initiatives to deepen customer
support and strengthen our management foundation

4⚫ We will work specifically on each of the six items listed as our basic policies, strengthen our sales capabilities to support
customers and strengthen our management foundation by accelerating reforms and innovations.
Basic policy

Practical initiatives◼

1. Boost our customer support
capabilities

◼
◼
◼
◼
◼

2. Take actions on sustainability
management

3. Revamp group’s investment
portfolio

4. Reform cost structure◼
◼

Accelerate initiatives to reduce CO2 emissions and formulate reduction measures with Scope 3 in mind
Implement advanced initiatives in the region and establish a position as a frontrunner toward the realization of adecarbonized society◼
◼
◼

Build a portfolio to secure medium-term stable earnings
Pursue capital earnings by accurately capturing market fluctuations and enhancing valuation gains
Take risk hedging considering the risk of future interest rate rises◼

Streamline clerical workflow in the administrative area and promote the integration of operations by function insections where there are a lot of clerical work
Reduce headquarter operations drastically using internal DX, RPA, etc., and staff reallocation to sales sections as aresult◼
◼

5. Improve employee satisfaction

6. Develop more sophisticatedgovernance structure

Expand the intra-prefectural business loan customer bases and noninterest income through business feasibility
evaluation
Internalize consulting, business succession, and M&A operations by utilizing highly specialized personnel
Expand customer support programs by building cross-group sales structure in Green Transformation/Digitaltransformation fields
Raise the level of consulting capabilities by enhancing the training of sales personnel who handle both individualand corporate customers and develop talents who have advanced skills
Promote non-face-to-face transaction services in the individual consulting field
Review branch functions and re-formulate and realize staff allocation looking ahead to future area-based strategies◼

◼
◼

Improve communication between superiors and subordinates by implementing high-quality one-on-one meetings ateach workplace
Improve human resource systems to realize proactive and autonomous career development, satisfactory evaluationand treatment

Sophisticate business management and risk management systems and develop risk appetite framework operationsystem
Strengthen security governance by improving anti-money laundering measures and system risk management
FIDEA HOLDINGS CO. LTD.

Fifth Medium-term Management Plan: Take actions on sustainability management5⚫ Under group investment and loan policy, we will actively engage in sustainable finance and aim to reduce 55% of CO2
emissions by fiscal 2030, and we will promote switching to clean sources of energy as well as energy conservation, among
other measures.
⚫ In addition, we will disclose KPIs related to securing diversity based on human rights policy, internal environment
improvement policy, human resource development policy, and so on, and work to create opportunities for diverse humanresources to play an active role in the Group.

CO2 emissions reduction targets

Sustainable finance

By FY2030, reduce 55% compared to FY2013(FY2013 emissions: 8,654 tCO2)

Invest 400 billion yen by FY2030(of which 200 billion yen in environmental fields)
Sustainable finance

(55)%
8,654

75.1
5,175

33.6

FY2021

200.0

39.3

13.8

of whichenvironmental fields

3,894
FY2021FY2013400.0(Total)

FY2030

FY2022

KPIs related to ensuring diversity
Items

Measures to reduce CO2 emissions➢ Switching to power generated by renewable energy➢ Switching to LED lighting at major bases such as branches
offices and the headquarters➢ Replacing company cars with electric cars
Systematically implement measures including the ones shown
above

FY2030End of FY2022
ResultEnd of FY2025
TargetShare of female directors

FIDEA Holdings

10.5%

12.0%

Share of women in generalmanagers or equivalent positions

3 companies total

4.9%

12.0%

Share of women in managers orequivalent positions

3 companies total

34.6%

30.0%

Share of mid-career hires inmanagers or equivalent positions

3 companies total

8.6%

18.0%

FIDEA HOLDINGS CO. LTD.

We will make the Tohoku region a center for producing happiness and hopethrough the passion, wisdom, and challenging spirit of all employees.

 Copying, duplicating or distributing this material to third parties without prior permission from FIDEA Holdings Co. Ltd. shall beprohibited.
 This material shall be prepared for informational purposes only and shall not be intended to solicit trading of specific securities.
 All or part of the matters stated in this material shall be subject to modification or change without notice.
 Future performance described in this material shall not be guaranteed and may be different from actual figures due to changes inthe business environment and other conditions.