FY2021 Financial Results
March 2022

Ｊｕｎｅ ３，２０２２Connecting people, local communities and future
TSE
1st Section and NSE 1st Section (7380)
東証プライム・名証プレミア（7380）

Table of Contents
Section I: Financial Results for FY2021

Section II: Initiatives for sustainability

Summary of consolidated results

４【Reference】Summary of non-consolidated results of Juroku Bank

５

Maximizing group synergy to improve profitability

６

Consolidated core net operating profit

７

Expenses and adjusted OHR

８Net interest income and loans

９Fees and commissions

１０

Securities investment

１１

Credit costs and bad debt balance

１２

Non-interest income ratio and profit of customer services

１３

Capital adequacy ratio and shareholder return

１４

Business projection and divided forecast

１５* The Juroku Financial Group was established on October 1,
2021. Pre-3/2021 consolidated figures in this table areconsolidated figures for the Juroku Bank Group, which has
Juroku Bank as the parent company.

Advancing initiatives for sustainability

１７

Value-creation process

１８

Setting key challenges (Materiality)

１９

Addressing key challenges (Materiality)

２０-２５

Materiality ～Revitalization of the local economy～

Materiality ～Sustainable development of the local
community～
Materiality ～ Environmental

conservation

andclimate change actions～
Materiality ～ Empowermentofdiversehuman

resources～
Materiality ～Advanced governance～

Disclosure based on TCFD recommendations

２６-２９Section Ⅲ: Progress of the First Management Plan
Overview of the First Management Plan

３１

Expanding business range

３２

Establishing the Group’s management structure

３３Progress against numerical targets

３４Management strategy ～Market-in approach strategy～

３５-３６Management strategy ～DX strategy～

３７-４０

Business launch of Juroku Densan Digital Service
Collaboration with Softbank for DX promotion
Management strategy ～Local commitment strategy～

４１-４３

Establishing Kanda Machiokoshi Co., Ltd.

* Description of business projections and other future
developments provided in this document is based on
information currently available to Juroku Financial Group andsome assumptions that is considered to be rational. Actual
business performance, etc. could be significantly different due
to a variety of factors.

Juroku Financial Group’s growth strategy

４４2Section I: Financial Results for FY2021

Summary of consolidated results

Juroku FG
consolidated results

 The consolidated core gross operating profit reached 78.2 billion yen, up 7 billion yen year-on-year with growth recorded in net
interest income, fees and commissions and other operating profit (excluding profit on Japanese government bonds and other debt
securities).
 【Consolidated results】The ordinary profit and net profit attributable to the shareholders of the parent company increased for the
fourth consecutive fiscal term.

(Unit: 100
million yen)
（単位：億円）Juroku FG十六ＦＧ連結
consolidated results
Consolidated
core gross operating profit
連結コア業務粗利益

2021/3A

2020/3705

2022/3B

712

782

Year-on-Year
前期比

B－A

１

70

１ Consolidated core gross operating profit
Increase due to expanded net interest
income and fees & commissions
Year-on-year difference +7 billion yen

Netinterest income
資金利益

518

505

543

38

Fees
and commissions
役務取引等利益

158

155

171

16

29

51

67

16

484

474

460

２ △ 14

うち人件費 expenses
Personnel

267

255

247

△8

Non-personnel
expenses
うち物件費

187

188

183

△5

連結コア業務純益
Consolidated
core net operating profit

220

238

321

8

0

△ 108

△１０８

４ 【Consolidated】 Ordinary profit

229

239

213

△ 26

5 Net income attributable to

Creditcosts
与信関係費用

41

42

28

△ 14

Profiton equities
株式等関係損益

2

45

65

20

Ordinary
経常利益 profit

194

246

267

４

21

Net income attributable to the shareholders of the

128

147

171

5

24

Other operating profit

その他業務利益（除く国債等債券損益）(Excluding profit on JBGs and other debt securities)

経費
ExpensesProfiton JGBs and other debt securities
国債等債券損益
Consolidated
net business profit
連結実質業務純益

親会社株主に帰属する当期純利益
parent company

２ Expenses
Decline in personnel and non-personnel expenses

３

Year-on-year difference △1.4 billion yen

３ Consolidated core net operating profit
Significant increase of 8.3 billion
yen year-on-year thanks to higher
consolidated core gross operating
profit and lower expenses

83

the shareholders of theparent company【Consolidated】The ordinary profit andthe net income attributable to theshareholders of the parent company
rose by 2.1 billion yen and 2.4 billion
yen year-on-year respectively, marking
the fourth consecutive increase.

（※）The Juroku Financial Group was established on October 1, 2021. Pre-3/2021 consolidated figures in this table are consolidated
figures for the Juroku Bank Group, which has Juroku Bank as the parent company.

4【Reference】Summary of non-consolidated results of Juroku Bank

Juroku Bank nonconsolidated results

 The core gross operating profit reached 68.4 billion yen, up 6.2 billion yen year-on-year with growth recorded in
net interest income, fees and commissions and other operating profit (excluding profit on Japanese government
bonds and other debt securities).
 The core net operating profit achieved a record 28.9 billion yen.
 Both ordinary profit and net income recorded an increase for the fifth consecutive fiscal term.

Juroku Bank non-consolidated
results
十六銀行単体コア業務粗利益Core
gross operating profit(Unit: 100
million yen)
（単位：億円）
2021/3A

2020/32022/3B

Year-on-Year
前期比

１ Core gross operating profit

B－A

626

622

684

Net interest income
資金利益

519

508

545

37

Fees and commissions
役務取引等利益

106

98

111

13

1

15

26

11

421

407

394

２ △ 13

うち人件費
Personnel expenses

223

209

195

△ 14

うち物件費
Non-personnel expenses

170

170

171

1

205

215

289

8

0

△ 108

△ 108

Net
business income
実質業務純益

214

215

180

△ 35

Credit costs
与信関係費用

35

41

25

△ 16

1

45

67

22

Ordinary profit
経常利益

185

225

245

４

20

Net income
当期純利益

127

141

173

5

32

Other operating profit
その他業務利益（除く国債等債券損益）(Excluding profit on JBGs and other debt securities)

経費
Expenses

コア業務純益Core
net operating profit
Profit on JGBs and other debt securities
国債等債券損益

Profit on equities
株式等関係損益

62

１

３

74

Increase due to expanded net
interest income and fees &commissions
Year-on-year difference +6.2 billion yen

２ Expenses
Down 1.3 billion yen yearon-year due to reduced
personnel expenses

３ Core net operating profit
Record 28.9 billion yen
due to the increase of
core
gross
operatingprofitandreducedexpenses

４ Ordinary profit
5 Net income
Income increase for the
fifthconsecutive
fiscalterm, with ordinary profit
and net income up 2 billion
yen and 3.2 billion yen
year-on-year respectively

5Maximizing group synergy to improve profitability

Juroku FG
consolidated results Maximizing Group synergy to achieve top-line growth (core gross operating profit), particularly non-interest profit

Top-line by Group company
and non-interest profit

JurokuCard
1,99９

JurokuDensanDigitalService49５

JurokuBusiness
Service431

JurokuResearch
Institute
３０１

Nobunaga
CapitalVillage
5９

March 2022 term

JurokuLease
JurokuCreditGuarantee
2,5６１

Juroku FG
consolidated results

2,48６

Juroku TT
Securities
2,88５
JurokuBank
68,４０１（Unit: million
yen）78,265＜Reference＞
March 2021
term
Juroku Bank
consolidated
results
71,290（After offsetting）＋6,975 year-on-yearMaximizing Group synergy under the new Groupstructure to achieve top-line growth, particularly
the non-interest profitAchieving the non-interest profit rate of 30%, thenumerical target for FY2022 stipulated in the FirstManagement Plan ahead of schedule

IncludingJuroku ＦＧ
3,6４５

non-interest profit
Including

２３，８９５

non-interest profit
２０，７５１

Non-interest
profit rate
３０．５３％＋3,144 year-on-year6

Consolidated core net operating profit

Juroku FG
consolidated results

 The consolidated core net operating profit jumped by 8.3 billion yen year-on-year to 32.1 billion yen thanks to higher consolidated
core gross operating profit and lower expenses.

Transition of core gross operating profit and expenses(Unit: 100 million yen)

Juroku FG
consolidated results(100 million yen)

Consolidated core gross operating profit
Expenses

800
21/3
Ａ

20/3

22/3
Ｂ

Difference

Ｂ－Ａ（ Consolidated core
net operating profit）

700
2２ billion yen

600

Consolidated core grossoperating profit

７０５

７１２

７８２

７０

Net interest income

５１８

５０５

５４３

３８

Fees and commissions

１５８

１５５

１７１

１６

Other operating profit (*)

２９

５１

６７

１６

Expenses

4８４

４７４

４６０

△１４

100

Consolidated core net operating
profit

2２０

２３８

３２１

８３

0

３２.１billion yen

2３.8 billion yen

500
400

782

712

705
300
484

200

474

20/3

460

21/3

22/3

*Excluding profit on JBGs and other debt securities

Fluctuation factors and transition
consolidated core net operating profit(100 million yen)

Approx. 80%

300
Loan
interest
△4
V:+6
R:△10

250

Depositinterest
+1
V:△０
R:+1

Securities interest
+22
Ｖ：+11
Ｒ：+10

the

Fees and
Other net
commissions
interest+1６+19(100 million yen)
Consolidated core net operating profit

Approx. 20%

Top-line growth: +7 billion yen

350

of

300

Expenses: +1.4 billion yen
Otheroperatingprofit+16

Nonpersonnel
expenses+５

250

Personnel
expenses
+8

200
321

150

+８３

321

220

100

238

162
238

50

V: Balance factor
R: Yield factor

113

0

200
21/3

22/3

18/3

19/3

20/3

21/3

22/3

7

Expenses and adjusted OHR

Juroku FG
consolidated results

Juroku Bank nonconsolidated results Adjusted OHR improved by 7.64 percentage points year-on-year to 58.87% in Juroku FG consolidated results, and by 7.68
percentage points year-on-year to 57.70% in Juroku Bank non-consolidated results, exceeding 50% for both to achieve a top-level
result among regional banks.
(Unit: 100 million yen)

20/3

21/3
Ａ

22/3
Ｂ

474

460

△14

267

255

247

△8

Personnel
人件費
expenses

Juroku FG
consolidated results

484

Expenses

187

188

183

△５

Taxes

28

30

29

△１

Expenses

421

407

３９４

△１３

２２３

２０９

１９５

△１４

200

１７０

１７０

１７１

１

100

２６

２７

２７

０

Personnel
expensesNon-personnel
expenses

Personnel
expensesNon-personnel
expenses
Taxes(100 million yen)

500

Juroku Bank nonconsolidated
results

Juroku FG
consolidated
results

20/3
Cross grossoperating profit
Expenses
Adjusted OHR

７０５

21/3
Ａ
712

22/3
Ｂ
782

Difference
Ｂ－Ａ
７０

484

474

460

△１４

68.69

66.51

58.87

△7.64

(100 million yen)

474

28

460

30

29

626

Expenses

421

407

394

△13

67.18

65.38

57.70

△7.68

622

684

62

Non物件費
personnel
expenses

Taxes
税金

500
407

400

26

394

27

27

300

300

170

170

171

200
223

209

195

20/3

21/3

22/3

400
187

188

183

255

247

0

100

0
20/3

21/3

22/3

(%)
85.0
80.0

Adjusted OHR (Juroku Bank
修正OHR(十六FG連結)
consolidated
results)
修正ＯＨＲ(十六銀行単体)
Adjusted
OHR (Juroku Bank
non-consolidated results)

83.86
82.49

75.19

75.0
75.04
70.0

68.69
66.51

65.0

67.18

65.38

60.0

Cross grossoperating profit

Adjusted OHR

Personnel
人件費
expenses

税金
Taxes

421

The increase is attributable to the management
guidance fee of 700 million yen paid to FG(Unit: 100 million yen, ％)Non物件費
personnel
expenses

484

267

Adjusted OHR

Juroku Bank nonconsolidated results

Juroku FG consolidated
results

Difference
Ｂ－Ａ

Juroku Bank nonconsolidated results

Expenses

55.0

58.87

57.70

50.0
18/3

19/3

20/3

21/3

22/3

8

Net interest income and loans

Juroku Bank nonconsolidated results

 The net interest income grew by 3.7 billion yen year-on-year to 54.5 billion yen due to the increase of both interest
income in Japanese yen and interest income in foreign currencies.
 The average balance of JPY loans had a solid result of 4,489.6 billion yen, up 78.5 billion yen year-on-year.

Breakdown of net interest income(100 million
yen)(Unit: 100 million yen)

Juroku Bank nonconsolidated
results

21/3
Ａ

20/3

22/3
Ｂ

500

96

376

379

378

20/3

21/3

22/3

３７

400

Interest income in JPY

４７５

４６５

４９４

２９

300

JPY loans and deposits

376

379

３７８

△１

JPY securities investment

96

82

９５

１３

JPY deposit interest

２

３

２０

１７

100

Interest income in foreign
currencies

43

42

５０

８

0

Average balance and yield of JPY loans

20/3

21/3
Ａ

22/3
Ｂ

200

(100 million yen)
50,000(Unit: 100 million yen, ％)Difference
Ｂ－Ａ

545
50

508
42
3
82

５４５

Average balance
円貨貸出金平残ofJPY loans

48,000

0.889

20
95

Average yield of△0.02２0.867

円貨貸出金平均利回り
JPY loans

（％）
1.400

△0.0２1

1.200
0.846

44,896
44,111

42,923

44,111

４４，８９６

７８５

1.000
0.800

46,00044,000

Average balance of JPY loans

円貨預貸金利息収支
JPY
loans and deposits

519
43
2

508

Juroku Bank nonconsolidated
results

Other
interest income in JPY
円貨預け金利息

600

Difference
Ｂ－Ａ

519

Net interest income

Interest income in foreign
外貨資金利益currencies
円貨有価証券利息配当金
JPY securities investment

0.600
0.400
0.200

42,9230.000
42,000-0.200-0.40040,000

Average yield of JPY loans

0.889

0.867

０．８４６

-0.600△０．０２１-0.80038,000-1.000
20/3

21/3

22/3

9

Fees and commissions

Juroku Bank nonconsolidated results Fees and commissions grew by 1.3 billion yen year-on-year to 11.1 billion yen.
 Individual-related revenues rose by 1.7 billion yen year-on-year. Juroku TT Securities also enjoyed a significant
increase of 400 million yen in individual-related revenues year-on-year.

Breakdown of fees and commissions(Unit: 100 million yen)

Juroku Bank nonconsolidated results
Juroku Bank

21/3
Ａ

20/3

22/3
Ｂ

Difference

１１１

１３

50

44

６１

17

17

Others

19

２０
２９

1

150

35

Juroku TT Securities

12

29

３３

４

(Juroku Bank + Juroku TT
Securities)

118

１２８

１４５

１７

38

2,500
(Millionyen)(Unit: Million yen)

Corporate solution-related
revenues

20/3
1,749

1,960

22/3
Ｂ
2,044

Difference

839

1,068

1,119

51

Private placement bond
fees

330

252

236

△16

M&A fees

140

272

174

△９８

Business matching fees

439

367

513

１４６

35
19

50

44

20/3

21/3

29
20

61

1,960
1,749

1,500

1,000

500

22/3

ビジネスマッチング手数料
Business matching fees
M&A手数料
M&A fees
Private placement bond fees
私募債手数料Syndicated loans and commitment fees
シ・ローン手数料+コミットメントフィー等

439
140

Syndicated loans andcommitment fees

33

111
98

17

2,000

B－A
84

29

0

Corporate solution-related revenues
21/3
Ａ

Others
その他

12
106

50

Corporate-related
法人ソリューション関連<Juroku TT Securities> Individual-related revenues

100

△６

38

Juroku Bank nonconsolidated results

Individualrelated

預り資産関連June 2019 –Operation launch

98

Corporate-related

200

Ｂ－Ａ

106

Individual-related(100 million yen)

367

2,044
513

272

174

252

236

1,068

1,119

21/3

22/3

330

839

0
20/3

10

Securities investment

Juroku Bank nonconsolidated results

 There were security valuation gains of 68.9 billion yen overall.
 Cross-shareholdings declined by 2.5 billion yen year-on-year to 47.8 billion yen due to continuous reduction efforts.

Valuation gains and losses of securities(Unit: 100 million yen)

Juroku Bank nonconsolidated
results
Bonds

20/3
５５２

21/3
Ａ

22/3
Ｂ

８６９

(100 million yen)

Difference
Ｂ－Ａ

８５７

1,000

△１２

800

Stocks

１７

△３

△７２

△６９

600

Other securities

△3

△27

△９５

△６８

400

Foreign bonds

４２

△２８

△６４

△３６

200

Investment trusts

△４６

０

△３１

△３１

0

565

83７

６８９

△１４８

△ 200

Total

Bond duration
Juroku Bank nonconsolidated
results

20/3

22/3
Ｂ

６.１６

6.82

6.67

△0.15

Foreign currency bonds

４.７１

5.84

4.84

△1.00

Others
その他

837

689

565
17

857

869

△3

△3
△ 27

20/3

21/3

（Year）

△ 72
△ 95
22/3

Foreign
外貨債券 currency bonds

JPY bonds
円貨債券

8.0

Difference
Ｂ－Ａ

JPY bonds

Stocks
債券

552（Unit: Year）

21/3
Ａ

Bonds
株式

6.82

6.67

6.16

7.0
6.0
5.0

5.84
4.84

4.71

4.0
3.0

20/3

*Excluding derivatives, and including JPY bonds for held-to-maturity purposes
and for other retaining purposes

21/3

22/3

(100 million yen)

Cross-shareholdings
Juroku Bank nonconsolidated
results
cross-shareholdings（book value）(Unit: 100 million yen)

900
800

18/3

19/3

20/3

21/3
Ａ

22/3
Ｂ

Difference
Ｂ－Ａ

Cross-shareholdings（book value）
883

700
600
500

549

542

527

503

478

△25

549

400

542

527

503

478

19/3

20/3

21/3

22/3

300
200
09/3

・・・

18/3

11

Credit costs and bad debt balance

Juroku Bank nonconsolidated results Credit costs decreased by 1.6 billion yen year-on-year to 2.5 billion yen due to a low level of bankruptcies, etc.
 The ratio of non-performing loans improved by 0.03 percentage points year-on-year to 1.48%.

Credit costs(Unit: 100 million yen)

Juroku Bank nonconsolidated results

21/3
Ａ

20/3

22/3
Ｂ

Difference
Ｂ－Ａ

Net transfer to general(100 million yen) 一般貸倒引当金繰入額
allowance for loan losses
50
41① Net transfer to general allowance forloan losses

2

8

9

1

40

② Disposal of non-performing loans

33

33

15

△18

30

Transfer to individual allowance forloan losses

29

3０

1４

△1６

③ Reversal of allowance for loan losses

-

-

-

-

④ Recoveries of written-off claims

0

0

-

0

Credit costs ①+②－③－④

35

41

25

Disposal of nonperforming loans

不良債権処理額

△１６

35

25
33

20

33

15

10
8

9

21/3

22/3

破産更生債権及びこれらに準ずる債権
Bankrupt
and substantially bankrupt
claims
要管理債権 claims
Substandard

危険債権claims
Doubtful

2

0

20/3

(※) Following the spread of COVID-19, Juroku Bank changed the way it estimatesallowance for doubtful accounts. This has increased the general allowance for loan
losses by 1 billion yen compared to the equivalent amount without the change.

Outstanding non-performing loans(Unit: 100 million yen, %)Juroku Bank nonconsolidated results(100 million yen)

20/3

21/3
Ａ

22/3
Ｂ

Difference
Ｂ－Ａ

Bankrupt and substantiallybankrupt claims

12５

Doubtful claims

482

54４

５５２

8

Substandard claims

2０

2７

２２

△５

Total

62８

69２

６８７

△５

Ratio against total claims
outstanding

1.41

1.51

１．４８

△0.03

121

１１２

1.41
800

△9
600

400

628
20

総与信に占める割合
Ratioagainst total claims
outstanding
（％）

1.51

1.48

1.60

692
27

687
22

1.40
1.20
1.00

482

544

552

0.80
0.60
0.40

200
125

121

112

20/3

21/3

22/3

0

0.20
0.00

12

Juroku FG
consolidated results

Non-interest income ratio and profit of customer services

Juroku Bank nonconsolidated results

 The consolidated non-interest profit ratio rose by 1.43 percentage points year-on-year to 30.53%, exceeding the numerical target
set out in the management plan.
 The profit from customer services increased by 3.2 billion yen year-on-year to 11.4 billion yen, exceeding the 10-billion-yen mark.

Non-interest income ratio*

Non-interest
income (Juroku Bank non非金利収益(十六銀行単体)

Non-interest
income (Juroku Bank FG
非金利収益(十六FG連結)

Bank nonNon-interest
income ratio (Juroku
非金利収益比率(十六銀行単体)
consolidated results)

非金利収益比率（十六FG連結)
Non-interest
income ratio consolidated

consolidated results)(Unit: 100 million yen, ％)consolidated results)(Juroku Bank FG(100 million yen)
21/3
Ａ

Juroku FG
consolidated
results

20/3

187

Non-interest income

22/3
Ｂ

２０７

Difference
Ｂ－Ａ

２３８

250

31

200

24.50

16.31

24.04
15.62

26.53
17.11

29.10

results)

（%)

30.53

35.0
30.0

18.38

20.29

20.0
15.0

Non-interest income ratio

26.53

29.10

30.53

1.43

150

158

157

187

238

207
138

Juroku Bank
nonconsolidated
results

25.0

107

Non-interest income

114

138

100

24

94
Non-interest income ratio

17.11

18.38

20.29

107

5.0
0.0

114

92

(5.0)

50

1.91

10.0

(10.0)(15.0)(※) The ratio of “fees and commissions” and “other operating profit
excluding profit on JBGs and other debt securities” in the core grossoperating profit

Profit from customer services
Juroku Bank nonconsolidated results
Profit from customer services

21/3
Ａ

20/3
７２

(Unit: 100 million yen, ％)

22/3
Ｂ
８２

１１４

Difference
Ｂ－Ａ
32

0

(20.0)
18/3

19/3

20/3

21/3

22/3

(100 million yen) Profit of customer services = Average loan balance x Deposit-loaninterest rate difference + Fees & commissions – Operating expenses
120
100
80
60

Average loan balance× Deposit-loan interest rate
difference

３８６

３８４

３８１

△３

Deposit-loan interest
rate difference

0.891

0.864

0.844

△０．０２０Fees and commissions

１０６

９８

１１１

１3

△ 20

Operating expenses

４２０

４００

３７８

△２２

△ 40

+32

40

72

20

114

82

36

0
△ 30

18/3

19/3

20/3

21/3

22/3

13

Capital adequacy ratio and shareholder return

Juroku FG
consolidated results

Juroku Bank nonconsolidated results

 The consolidated capital adequacy ratio was 10.52%, while the non-consolidated capital adequacy rate was 9.34%.
 Following the transition into the holding company system, the ordinary dividend was increased to 50 yen, and thecommemorative dividend was increased to 20 yen, bringing the end-of-year dividend to 70 yen.

Capital adequacy ratio(Unit: ％)Capitaladequacy ratio (Juroku Bank FG consolidated results)
自己資本比率(十六FG連結)
Capitaladequacy ratio (Juroku Bank non-consolidated results)
自己資本比率(十六銀行単体)

(%)

20/3

21/3
Ａ

22/3
Ｂ

Difference

Juroku FG
consolidated results

9.27

9.93

10.52

0.59

10.00

Juroku Bank nonconsolidated results

8.71

9.35

9.34

△0.01

9.00

Ｂ－Ａ

11.00

10.52
9.93

（※）Following the transition to the holding company system Juroku Bank paid out in-kind dividend of
13.4 billion yen (subsidiary shares, etc.) and ad-hock dividend of 3.7 billion yen to the Juroku
Financial Group, reducing Juroku Bank’s non-consolidated capital adequacy ratio.

8.00

9.27
9.35

9.34

20/3

21/3

22/3

Total
配当金総額
dividends

自己株式取得額

Acquisition ofown shares

Total payout ratio
総還元性向（連結）(consolidated)

8.71

7.00

Dividends
19/3
Annual dividends

70 yen20/3

80 yen21/3

90 yen22/3

120 yen

6,000(million yen)

32.3
1,111

5,000

End-of-year

Interim24.5

Ordinary
dividend
Ordinary
dividend
Others

35 yen35 yen35 yen50 yen23.2

22.8
Commemorative
dividend

35 yen35 yen45 yen50 yen

10 yen

10 yen20 yen(Special
dividend)(Commemora
tive dividend)(Commemora
tive dividend)Specialdividend

2,000
2,615

2,989

30.0
25.0

4,000
3,000

（％）
35.0

Commemorative
dividend

20.0
15.0

４，４５３
10.0

3,363

1,000

5.0

* The end-of-year divided in 3/2022 will be issued by the Juroku Financial Group.
〇 Juroku Financial Group’s shareholder return policy
The Juroku Financial Group’s basic policy is to pay stable dividends continuously while
striving to further improve its fiscal robustness. In view of business management conditions
and income level, the Group determines shareholder return details aims to achieve the total
payout ratio of at least 25%.

0

0.0

19/3

20/3

21/3

22/3

14

Business projection and dividend forecast

Juroku FG
consolidated results

Juroku Bank nonconsolidated results

 The net profit attributable to the shareholders of the parent company for the March 2023 term is expected to reach 17.5 billion yen, up 400 million
yen year-on-year.
 Shareholders are expected to receive 120 yen in annual dividend, consisting of 50 yen as an ordinary interim dividend and 70 yen in an ordinary
end-of-year dividend.

(Unit: 100（単位：億円）
million yen)

Business projection
Juroku FG 十六FG連結
consolidated results

2022/3(actual)（実 績）【Reference】
Juroku Bank non十六銀行単体
consolidated
results

2023/3
前期比
Difference（予 想）(projection)△ 52

実質業務純益Actual operating income

180

230

50

Net business income
与信関係費用25

45

20

Ordinary profit
経常利益

245

232

△ 13

Net profit
当期純利益

173

165

△8

△ 58

資金利益
Net interest income

543

496

△ 47

Fees and commissions
役務取引等利益

171

175

4

Other operating profit (Excluding profit on
その他業務利益(除く国債等債券損益)
JBGs and other debt securities)

67

53

△ 14

460

459

△1

Personnel expenses
うち人件費

247

246

△1

Non-personnel expenses
うち物件費

183

183

0

Consolidated core net operating profit
連結コア業務純益

321

265

△ 56

30

Net business income
経常利益

267

255

△ 12

20

175

4

Juroku Bank non-consolidated results(100 million yen)

Creditcosts (interim)
与信関係費用（中間）50

与信関係費用（通期）Creditcosts (annual)

40

45

41
27
19

10

25
17

0
21/3

22/3

23/3
(予想)
(projection)

Dividend forecast
21/3
90 yenAnnualdividend

Interim

22/3
120円（including the ordinary dividend
increase of 10 yen)（including 10 yen incommemorative dividend）（including 20 yen incommemorative dividend）

35 yen50 yen23/3(projection)
１２０円

（yen)

100
５０円

Yearend（including the ordinary dividend
increase of 10 yen)（including 10 yen incommemorative dividend)

70 yen（including 20 yen incommemorative dividend）

７０円

期末
Year-end

中間Interim

150

50
55 yen

前期比
Difference

237

724

171

2023/3(projection)
（予 想）

289

782

Net profit attributable to shareholders of the parent
company
親会社株主に帰属する当期純利益

2022/3(actual)（実 績）

コア業務純益Core net operating profit

連結コア業務粗利益
Core gross operating profit

Expenses
経費(Unit: 100 million
yen)（単位：億円）

120

120

70

70

35

50

50

21/3

22/3

90
55

0
23/3
(予想)
(projection)
15

Section II: Initiatives for sustainability

Advancing initiatives for sustainability
 Adopting the Sustainability Policy to promote sustainability and improve mid- to long-term corporate value
 Restructuring the organization and establishing the Sustainability Council to advance initiatives for sustainability① Adopting the Sustainability Policy
Drawing up the Sustainability Policy to promote sustainability and improve mid- to long-term corporate value
Sustainability Policy
The Juroku Financial Group recognizes sustainability initiatives as an important management challenge. The Groupwill strive to solve climate change and various other social issues through its primary business of “general regional
financial services” in line with its management philosophy of “achieving growth and prosperity of our customers andlocal communities” while achieving its sustainable growth and improving its corporate value.

(※) Definition of ”sustainability”
Creating a society that facilitates the growth and prosperity of customers and local communities, and passing it over to future generations② Organizational restructuring

Sustainability Management Structure

Restructuring the organization for the purpose of appropriately addressing issues surrounding sustainability

Board of Directors

 Juroku Financial Group
Newly establishing the Sustainability Management Office within the Group Sales Management Division
 Juroku Bank
Upgrading the SDGs Promotion Office within the Regional Revitalization Division to the Sustainability
Promotion Department within the Business Support Division (with the SDGs Promotion Group establishedwithin the Department)

ReportSuperviseGroup’s Management Council
Sustainability Council
Chaired by the President
Report③ Establishing the Sustainability Council

InstructSustainability Management Office

Establishing the Sustainability Council, chaired by the President, to appropriately address initiatives forclimate change and other sustainability issues, recognizing them as an important management challenge
Deliberating on key challenges such as drawing up the policy for implementing initiatives for climate change
and other sustainability issues, setting targets and checking progress, and reflecting results to management
strategies and risk management
Reporting to the Board of Directors periodically to establish an appropriate supervisory framework

ReportGroup Administration
Management
DivisionGroup Corporate
Planning Division

OverseeGroup Risk
Management
DivisionGroup companies

Group SalesManagement
Division17

Value creation process
 Delivering value to all stakeholders through corporate activities in order to contribute to achieving SDGs

ＩＮＰＵＴ
Capitals to be usedHumancapitalIntellectual
capitalSocialcapitalFiscalcapital Diverse humanresources Employee-empoweringorganization
 Advanced consulting
capability
 Locally-establishedbrand Group products thatmeet market needs
 Streamlined
management due towork reforms

ＡＣＴＩＶＩＴＩＥＳCorporate activities

ＯＵＴＣＯＭＥ
Presented value

Our mission

 Issues and optimum
solutionsCustomers  Advanced convenience Enrichment

Achieving growth and prosperity for ourcustomers and the local community

Our vision
To become a comprehensive financial group thatbuilds a future with local communities and achieves
sustainable growth with local economies

Maximizing
groupsynergy Excellent and robust
customer base Market that supports
Japan’s Monozukuri
philosophy
 Domestic andinternational networks

 Personal growth
Utilizingcustomerbase,
informationand network

Reforming thementality andbehaviors of
employees anddirectors

Connecting people,
local communities and future Strong profitability
 Sound loan assets
 Enhanced equity capital

Localcommitment
strategy
Handling
comprehensive
local design

DX strategy
Improving
convenienceand productivity
Market-in
approach strategy
Further exerting
problem-solving
capacity

NaturalcapitalExternal
environment

 Rich nature Rich tourism resources Biodiversity

Contraction of market scale
Conversion of business mode
Social changes

 Development of local
economy Regional revitalization
Local
communities through collaboration withlocal governments
 Advanced financial
infrastructures

Employees  Healthy work-life balance

SDGs
contribution
No poverty

Zero hunger

Good healthand well-being

Quality education

Gender equality

Clean waterand sanitation

Affordable andclean energy

Decent work andeconomic growth

Industry, innovationand infrastructure

Reducedinequalities

Sustainable cities
and communities

Responsible
consumption andproduction

Climate action

Life below
waterLife on land

Peace, justiceand strong
institutions

 Promotion of diversity

 Improvement of corporatevalue
 Disclosure of information
including non-fiscal
Shareholders information
Investors  Promotion of engagement

 Response to climatechange Zero-carbon society
Environment  Environmental
conservation

Partnerships
for the goals

Corporate governanceRisk management
Compliance：：：

Population decline, aging society, reduced number of companies, changes in industrial structure
Protracted negative interest policy
Progress in cashless society
Cross-industrial market entries
Response to climate change
Response to COVID-19
Banking Act deregulation

18

Setting key challenges (Materiality) Upon its launch, the Juroku Financial Group has issued a “Juroku Financial Group SDGs Declaration” and defined
five key challenges (materiality).
Environmental andsocial challenges
No poverty

Zero hunger

Extracting and identifying challenges
十六フィナンシャルグループの経営理念、グループ連携、
Extracting and identifying challenges that must be prioritized in viewof Juroku Financial Group’s management philosophy, Group
地域特性を踏まえ、優先して取り組む課題を抽出・特定
collaboration and regional characteristics

Affordable and clean
energyIndustry, innovationand infrastructure

Clean water andsanitation

Decent work andeconomic growth

Reducedinequalities

Group management philosophy

Gender equality

Quality education

Code ofconduct

Good healthand well-being

Achieving growthand prosperity forour customers andthe local community

Our mission

A comprehensive financialgroup that builds a futurewith local communities
and achieves sustainablegrowth with local
economies

Our vision

Climate action

Life on land

Responsible
consumption andproduction

Juroku Financial Group
SDGs Declaration
The Juroku Financial Group’s mission is to deepen our ties with the the local community andcreate a rich and livable community. To this end, we are working on creating a sustainable
society as a general financial group that is committed to creating a future with and for the local
community and achieving a sustainable growth together.

Key challenges (materiality)
Trust&
integrity

Creation&
innovation

Diversity&
inclusion

Revitalization of thelocal economy

Our values
A set of conducts aimed at facing the issues of our customers andlocal communities and working with them to bring solutions

Connecting people, local communities and future Juroku Financial Group
Sustainable cities
and communities

Key challenges

Sustainable
development of thelocal community

Tapping into the Group’s management
resources in offering a wide range offinancial services, thereby helping local
companies grow and the local economy
to revitalize
Utilizing local resources andcollaborating with local councils increating new value for the next
generations and creating a comfortable
and appealing community

Empowerment ofdiverse humanresources

Promoting diversity and work stylereforms to create a workplaceenvironment that empowers diverse
human resources and gives them asense of fulfillment

Environmental
conservation and climatechange actions

Striving to reduce the environmental
impact and implementing conservation
activities, while promoting the use ofrenewable energies through businessactivities to address climate change

Advanced governance

Advancing governance and reinforcing
the compliance system to establish asound and transparent management
structure

Life below water

Peace, justice andstrong institutions

Partnerships forthe goals

Connecting people, local communities and future

19Addressing key challenges (Materiality) The Juroku Financial Group is promoting various initiatives in line with the SDGs Declaration to address five key challenges (Materiality).

Management

Business

Key challenges(materiality)

Initiatives

Revitalization of
the local
economy Supporting business foundation and new business operations
to foster future leaders of local economy
 Supporting local companies’ main business operations andmanagement succession to contribute to their growth Supporting asset formation to achieve enriched living

Sustainable
development of
the local
community Creating comfortable and appealing communities
 Using local resources to create value that will benefit future
generations
 Promoting digital transformation of local companies and local
governments

Environmental
conservationand climatechange actions

 Supporting local companies’ carbon neutral business management
 Implementing initiatives for environmental conservation andenvironmental impact mitigation
 Responding to climate change and disclosing information in linewith TCFD

Empowerment ofdiverse humanresources Building a corporate culture that boasts diversity as strength Implementing work style reform to provide a good work-lifebalance Creating workplaces that facilitate growth of diverse humanresources and empower them

Advancedgovernance Advancing corporate governance Strengthening risk management and compliance Achieving stakeholder engagement

Decent work andeconomic growth

Industry, innovationand infrastructure

Quality education

Decent work andeconomic growth

Affordable and clean
energyClimate action

Gender equality

Sustainable cities
and communities

Life below water

Partnerships forthe goals

Life on land

Decent work andeconomic growth

Peace, justice andstrong institutions

20

Materiality ～Revitalization of the local economy～
Revitalization of the local economy
VisionProviding a wide range of financial services to grow local companies and contribute to the revitalization of local economy

Key items

ActionSupporting business foundation and new business operations to foster
future leaders of local economy
・ NOBUNAGA２１（※） ※ Venture support network led by the private sector
・ Open innovation
・ Startup and venture investments
Expanding business⇒ Establishing the NOBUNAGA Capital Village
range

Supporting local companies’ main business operations andmanagement succession to contribute to their growth・ Arranging business meetings and business matching to help local
companies expand sales channels
・ Supporting initiatives for solving social and environmental issues
・ Management succession, M&A support
・ Human resource referencing, HR system consultation

Supporting asset formation to achieve enriched living
・ Supporting asset formation in line with major life events
・ Offering asset management consultation with extensive service lineup・ Supporting inheritance and asset succession, using trust products
・ Providing financial and economic education

 Local VC・CVC investment
 Sustainable finance Management succession consultation
 Human resource reference Asset formation support
 Balance of Group assets on deposit

Sustainability KPIs
Targets by FY2030
Sustainable finances provided(including environment-related
finances)
Balance of Group assets on
deposit

2 trillion yen（800 billion yen)

550 billion
yen

21Materiality ～ Sustainable development of the local community ～Sustainable development of the local community
VisionUsing local resources to create comfortable and appealing communities, and promote digital transformation of local
communities

ActionKey items

Creating comfortable and appealing communities

 Local revitalization initiatives
 Sustainable tourism development
 Social impact investments DX-support consultation
 Payment-clearing solutions
 Cashless transactions

・ Community development fund / PFI initiatives
・ Renovation / redevelopment support
・ Area design management for tourism destinations, shopping malls, etc.
⇒ Establishing Kanda Machiokoshi Co., Ltd. Expanding businessrange

Using local resources to create value that will benefit future generations

・ Industrial – Bureaucratic – Academic partnership using extensive networks
・ Branding local resources
・ Supporting tourism marketing
・ Social impact investment

Sustainability KPIs
Targets by FY2030

Promoting digital transformation of local companies and local governments

・ Offering solutions based on IT consultation
・ Supporting cashless transactions with new payment-clearing services
・ Supporting digital transformation of local governments
Expanding business⇒ Establishing Juroku Densan Digital Service Co., Ltd.
range

Social impact investments

2 billionyen

DX-support consultation
cases

3,000
cases

22

Materiality ～ Environmental conservation and climate change actions ～Environmental conservation and climate change actions
VisionWorking on reducing the environmental impact and helping local companies achieve carbon neutrality in order to build adecarbonized society

ActionKey items

Supporting local companies’ carbon neutral business management

 Decarbonization support for local companies

・ Offering decarbonization consultation services
・ Providing environment-related finances (investments, loans, leasing)・ Supporting renewable energy business・ Providing a wide range of solutions involving external business partners
Implementing initiatives for environmental conservation andenvironmental impact mitigation
・ Updating air conditioners and introducing LEDs to stores to reduce power
consumption
・ Expanding areas for introducing CO2-free electricity
・ Promoting paperless operations to reduce the use of paper・ Adopting HVs / EVs for sales fleet
Responding to climate change and disclosing information in line with
TCFD・ Building a governance structure for climate change・ Advancing scenario analysis
・ Measuring SCOPE３ and setting reduction targets
・ Enhancing the quality and quantity of information disclosure CO2 emission reduction
 Paper use reduction
 Use of HVs and EVs for sales fleet

Sustainability KPIs
Targets by FY2030
CO2 emission (vs. FY2013
level)

50%
reduction

Paper use (vs. FY2019
level)

50%
reduction

23

Materiality ～ Empowerment of diverse human resources ～Empowerment of diverse human resources
VisionPromoting diversity and work style reform to create a workplace that empowers diverse human resources

ActionKey items

Building a corporate culture that boasts diversity as strength Development of female managers

・ Offering re-skilling training for work conversion and work scope expansion
・ Actively appointing women to managerial positions
・ Abolishing uniforms and insignias for mentality reform・ Employing seniors, the disabled and those making a career change

Implementing work style reform to provide a good work-life balance
・ Obtaining healthy management certification
・ Encouraging workers to claim paid leave
・ Encouraging male employees to claim parental leave / spouse maternal leave
・ Promoting diverse work styles involving remote work and staggered commuting

Creating workplaces that facilitate growth of diverse human resourcesand empower them・ Expanding investment in human capital by increasing opportunities to participate
in trainings
・ Developing specialized human resources and helping them attain qualifications
・ Developing human resources capable of building trusting relations with customers
・ Utilizing a career-challenge system Encouragement to claim paid leave Promotion of parenting leave for men
 Development of IT / DX human resources

Sustainability KPIs
Targets by FY2030
Ratio of female managers

２０％

Ratio of paid leaveclaimed

８０％24

Materiality ～ Advanced governance ～Advanced governanceVisionAdvancing governance and disclosing information appropriately to establish a transparent management structure

ActionKey items

Advancing corporate governance・ Assessing the effectiveness of the Board of Directors
・ Advancing the internal auditing structure
・ Building a sustainability management structure
・ Introducing sustainability elements to directors’ remunerations

Strengthening risk management and compliance・ Risk management stance・ Compliance stance・ Preventing money laundering・ Information security

Achieving stakeholder engagement
・ Engagement with customers
・ Engagement with managers
・ Engagement with local communities
・ Engagement with shareholders and investors

Third-party involvement in assessing the effectivenessof the board

Third-party involvement in assessing the advancement of the internal

auditing systemInitial response training for emergency preparednessDialog with investors

Sustainability KPIs
On-going targets
Initial response training
for emergency
preparedness

No less than
twice a year

Dialog with investors

No less than
10 times a
year

25

Disclosure based on TCFD recommendations
Governance
Sustainability management structure
As stated in the Sustainability Policy, the Juroku Financial Group recognizes sustainability initiatives (e.g. on climate change) as an importantmanagement challenge. “The Juroku Financial Group SDGs Declaration” lists “environmental conservation and climate change response”
as one of key challenges.
In order to address this challenge appropriately, the Group has set up the Sustainability Council, which is chaired by the President and consisting of Group Management
Council members, Division General Managers and the head of the Sustainability Management Office. The Council meets at least once every 3 months in principle todeliberate on key challenges such as drawing up a policy for implementing initiatives for climate change and other sustainability issues, setting targets and checking progress,
and reflecting results to management strategies and risk management. Items deliberated on at this Council are reported periodically to the Board of Directors at least once a
year for appropriate supervision.

Strategy
Opportunities and risks brought by climate change
The Juroku Financial Group analyses risks and opportunities associated with climate change in the timeframes of “short term,” “mid term” and “long term.” The results ofanalyzing scenarios are used to organize active dialog (engagement) for supporting customers who are working toward a decarbonized society, and reinforce financial
support in the forms of sustainable financing and transition financing to create business opportunities and reduce risks.
Assessment item

Main opportunities and risks

Timeframe

Resource efficiency
Opportunities

Increasing business opportunities, e.g. offering investments, loans and consultation services to help customers’ transition to a decarbonized society
Reducing business costs through resource saving and energy saving
Boosting corporate value by implementing appropriate initiatives on climate change and disclosing information about them
Increasing public works projects for disaster management the demand for customers’ capital investment fund

Short- to long-term
Short- to long-term
Short- to long-termMid- to long-term

Acute risks

 Deterioration in customers’ business performance and damage to collateral value due to the increase in frequency and severity of abnormal climate
patterns, causing a decline in loan asset value
 Business disruption at Group sites affected by a disaster

Short- to long-term
Short- to long-term

Chronic risks

 Deterioration in customers’ business performance and damage to collateral value due to higher average temperature and higher sea level, causing
a decline in loan asset value

Mid- to long-term

Energy sources
Products and services






Robustness

Physical
risks
Risks

Policies / laws
Transitionalrisks

Technologies
Market Deterioration in customers’ business performance due to climate-related regulation tightening, failed investment in low-carbon technology andchanges in consumer behaviors, causing a decline in loan asset value
 Slower implementation of appropriate climate-related initiatives and disclosure of information about them than competitors, lowering corporate value

Mid- to long-term
Short- to long-term

Reputation※ Short-term = Around 5 years; Mid-term = Around 10 years; Long-term = Around 30 years

26Information disclosure based on TCFD recommendations
Scenario analysis
The Juroku Financial Group conducts scenario analysis on physical risks and transitional risks in order to identify how climate-related risks would affect the Group.

Physical risksRain-prone Japan experiences heavy precipitations each year, causing rivers to swell and triggering flooding. In recent years, the number of heavy localized rainstorms havebecome more common, causing significant damage to many areas including our sales territories.
In terms of physical risks, we have anticipated an increase in the frequency of large-scale flooding due to climate change, and calculated the impact of climate-attributablelarge flooding in Gifu Prefecture on the Group’s credit-related expenses on the premise of the RCP8.5 scenario (４℃ scenario). The result points to the cost increase of
approx. 3.1 billion yen.
Transitional risks
Following qualitative analysis on sectors with large credit exposure and sectors referred to in TCFD recommendations, we have identified “electric power sector” and“automotive sector” as sectors of significant transitional risks for the Group.
In terms of transitional risks, on the premise of the RCP2.6 scenario (２℃ scenario) and NZE scenario (1.5 ℃ scenario), we calculated the impact on the Group’s creditrelated expenses in view of the increased cost of transition into a decarbonized society (e.g. introduction of the carbon tax), decline of net sales and future market trends. The
result points to the cost increase of approx. 2.2 billion yen.

Physical risks

Transitional risks

Scenario

IPCC／RCP８.５ scenario （４℃ scenario）

IPCC／ＲＣＰ２.６ scenario （２℃ scenario）
IEA／ＮＺＥ scenario （１.５℃ scenario）

Risk event

Large-scale flooding

Transition to a decarbonized society

Analysis target

Borrowers in Gifu Prefecture
Collateral of real estate (buildings) in Gifu Prefecture（excluding secured home loans）

Electric power sector
Automotive sector

Analysis content

Deterioration of business performance due to customers’ businesssuspension / stagnation
Damage to the Group’s real estate (buildings) collateral

Deterioration of customers’ business performance due to cost increase
and sales decline

Analysis period

Up to 2050

Up to 2050

Analysis results

Increase of credit-related expenses: Up to 3.1 billion yen

Increase of credit-related expenses: Cumulative total of approx. 2.2
billion yen※ IPCC （Intergovernmental Panel on Climate Change）※ IEA （International Energy Agency）

Analysis results are calculated under specific preconditions.
The impact on the Group’s finances has been found to be limited within the scope of this analysis, but we will continue to enhance thescenario analysis.
27

Information disclosure based on TCFD recommendations
Carbon-related assets
Of carbon-related assets defined in the TCFD recommendations, loan balance to energy and utilities sectors accounts for 1.4% of the totalloan balance. We will examine target sectors for other carbon-related assets for future information disclosure.
Ratio of carbon-related assets against Juroku Bank’s loan balance(as of the end of March 2022)（Unit: million
yen）
Utilities

Energy

１.０％

Total

０.４％

１.４％

※ Loan balance = Total of loans, foreign exchange, acceptanceand guarantee, etc.
※ Utilities include electric power and gas supply sectors andexclude water and renewable energy power sectors

Risk management
Approach to risk management
The Group has an integrated risk management framework in place, managing its overall financial risks in the categories of “credit risk,” “market risk,” “fluidityrisk” and “operational risk.”
Climate change risk is recognized as one of the top risks and a driver of financial risk, and is controlled with the risk management framework for credit risk
and operational risk.

Formulating an investment and lending policy
The Group has the Investment and Lending Policy for Creation of a Sustainable Society.
Basic policy
The Group strives to contribute to medium- to long-term enhancement of corporate value and sustainable growth ofcustomers by vigorously supporting initiatives to resolve environmental and social issues through investment and lending.
Moreover, the Group strives to mitigate or avert the impact of investment and lending that may pose a significant risk orhave a negative impact on the environment and society by subjecting any such investment and lending to meticulous
consideration.

Sector-specific policies
Coal-fired thermal
power generation

Juroku FG will not invest in or extend loans to projects that involve building new coal-fired thermal power stations or expanding existing power generation
facilities, while taking a prudent approach in considering exceptional cases in response to emergencies or in projects in line with the Japanese government’s
energy policy.

W

Juroku FG will not invest in or extend loans to companies that manufacture weapons, regardless of fund usage, in view of the inhumane nature of cluster
bombs, anti-personnel landmines and biological / chemical weapons.

e

a

p

o

n

s

D e f o r e s t a t i o n

Juroku FG will not invest in or extend loans to projects that involve illegal logging or forest incineration. Investment in / loan to projects whereby the fund is28
used for operations that involve deforestation will be considered carefully in view of their impact on the local economy and the environment.

Information disclosure based on TCFD recommendations
Indicators and targets
CO2 emission reduction targets
The following reduction targets are set on CO2 emission generated by the Group’s energy use in our efforts to establish a decarbonized society.
TargetHalve CO2 emission by FY2030 from the FY2013 level and achieve carbon neutrality by FY2050

ＣＯ2 emission（ＳＣＯＰＥ１、２）

Carbon neutrality
FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021ＣＯ2 emission（ＳＣＯＰＥ３）
FY2021 results【Category ６】 Business trips【Category ７】 Employee commuting

In FY2021, the Group reduced CO2 emission
by 852 tons from the previous year, due partly
to the introduction of CO2-free electricity
generated in Gifu Prefecture for use at Juroku
Bank’s head office building, which began inNovember.
This has reduced our CO2 emission by 34.4%
in FY2021 compared to the FY2013 level.

FY2050target

FY2030target（Unit：t-CO2）
４９
３,１３５

Calculation methods for other categories will be explored for future information disclosure.

Sustainable finance targets
The following targets are set on sustainable finances in order to support, through out business, customers’ initiatives for solving environmental
issues and to contribute to establishing a decarbonized society.
T a r g e t s

２ trillion yen (including 800 billion yen in the environmental field)

P e r i o d

９ years (FY2022 – FY2030)

T a r g e t
investment andlending, etc.

 Sustainable finances ： Investment and lending for SDGs / ESG initiatives that contribute to building a sustainable society
 Environmental field ： Investment and lending for initiatives to reduce environmental impact

29Section III: Progress of the FirstManagement Plan

Overview of the First Management Plan Implemented various measures, defining the period from October 2021 to March 2022 as the stage to put the Group structure on track

First Management Plan
Period: October 2021 – March 2023

Our aim
To become a comprehensive financial group that builds a future with local communities
and achieves sustainable growth with local economies

Maximizing
groupsynergy

Numerical targets for FY2022
Consolidated net income: 16 billion yen and above
Consolidated capital adequacy ratio:

Consolidated adjusted OHR:

Consolidated non-interest

10% and above
65% and above
30% and above

income ratio:Long-term indicator
Consolidated ROE:

5% and above

Reforming thementality andbehaviors of
employees
and directors

Utilizingcustomerbase,
informationand network

Connecting people,
local communities and future
DX strategy
Improving
convenienceand productivity

Local commitment
strategy
Handling
comprehensive
local design

Market-in
approach strategy
Further exerting
problem-solving
capacity

October 2021 – March 2022

April 2022 – March 2023

April 2023 -Market-in (market-oriented) approach strategy, DX strategy, and local commitment strategy

Stage to put the Group structure on
track

Further promoting and exploring the three strategies even deeper to

Next Management Plan

convert the business model and build the foundation for sustainable growth31

Expanding business range
 Systematically and swiftly expanding the scope of business to become a comprehensive regional financial service
provider by newly establishing a DX company and a community development company to join the investment company
that had been launched ahead of the introduction of the holding company system
Becoming a comprehensive
regional financial service provider
Referring human resources
and assisting management
Fund
management

Financial intermediaryfunction

JurokuBank

JurokuResearch
Institute

Improving productivity
JurokuBusiness
Service

Juroku Credit
Guarantee

Juroku TT
Securities

JurokuCard
Catering tocashless society

Forming assets

Expandingbusiness categories

Nobunaga
CapitalVillage

Supporting capital
Established on April 1,
2021

Maximizing groupsynergy
JurokuDensanDigitalService

Supporting digitaltransformation
Joint venture launchedon March 1, 2022

Juroku
Lease
カンダ
Kanda
Machiokoshi
まちおこし

Supporting
capital investments

Local revitalization

Established on April 1,
2022

Juroku Densan Digital Service and Kanda Machiokoshi are licensed as non-bank banking-service enhancement companies.

32

Establishing the Group’s management structure For the purpose of reinforcing consolidated profitability and group governance, Group companies, excluding joint
ventures, have been set up as wholly-owned subsidiaries of the Juroku Financial Group or Juroku Bank.

Group structure
Before the establishment of the holding company＜9.30.2021＞

Juroku Bank
Juroku Business Service

Investment
ratio（Bank）

Now ＜as of 4.1.2022＞

Juroku Financial Group

Investment
ratio（FG・Bank）

Juroku Bank
Juroku Business Service

Juroku Research InstituteJuroku Credit Guarantee
Juroku TT Securities

Juroku Research InstituteJuroku Card

Juroku TT Securities

Juroku Lease

Juroku Card

Juroku Computer Service

Juroku Lease
Juroku Densan Digital Service

Juroku Credit Guarantee
Nobunaga Capital Village

(※１)

(※2)

Nobunaga Capital Village
Kanda Machiokoshi(※３)

Capital investors other than the Juroku FG Group (※１) Tokai Tokyo Financial Holdings, Inc.
(※2) Densan System Holdings Co., Ltd.
(※３) Music Securities, Inc.

33

Progress against numerical targets
 Achieving various numerical targets ahead of schedule to steadily improve profitability, fiscal integrity and efficiency, which form management foundation.

Consolidated net income Securing good profitability

Numerical
targetConsolidated capital
adequacy ratio（％）

Numerical
target（100 million yen）

Maintaining high fiscal integrity

Numerical target: No
less than 16 billion
yen

10.52

Numerical target:
No less than 10%

147

128
99

106

18/3

19/3

20/3

21/3

Securing highefficiency

Consolidated adjusted
OHR（％）

Numerical
target

9.93

171

22/3

Numerical
targetConsolidated non-interest
profit ratio（％）

9.27

9.15

9.08

18/3

19/3

20/3

Achieving thenumerical target

Long-term
indicator

Numerical target:
No less than 30%

Consolidated
ROE（％）

Improving levelyear after year

Long-term indicator: No
less than 5%

30.53

82.49

22/3

21/3

29.10
4.36

75.19
3.98

26.53

68.69

3.65

66.51
Numerical target:
No more than 65%
58.87

18/3

19/3

20/3

21/3

22/3

24.50

18/3

24.04
19/3

2.94
20/3

21/3

22/3

18/3

3.05

19/3

20/3

21/3

22/3

34

Management strategy ～ Market-in approach strategy ～ Amassing the Group’s management resources to fulfill the consulting function
 Offering diverse solutions for various issues

Market-in approach strategy– Further exerting
problem-solving capacity – Develop human resources for boosting the Group’s solutionpresenting capability for corporate clients, use the Bank’s
customer base, information and network, and collaborate withGroup companies to offer diverse solutions to issues at each of
corporate clients’ life stages.

Stability
stage

Foundation /Growth stage

Business matching

Lease sales

 Actively utilizing business matching tosubstantially increase performance Strengthening collaboration between
Juroku Bank and Juroku Lease tosteadily increase sales

Successful
成約件数
cases

（case）

Offering diverse solutions to issues at eachof the corporate clients’ life stages

4,824

260

250
1,595
240

1,000

230

0
Boosting
コミュニケーcommunicati
ション
on能力向上capability

Providing
研修の充実
enhancedtraining

21/3

Developing human
顧客との強固な関係を
resources capable ofbuilding strong ties構築できる人材の育成
with customers▶ Supporting fundraising through equity investment, andassisting the expansion of sales channels through businessmatching, etc.

 Initiatives in the stability stage▶ Facilitating leasing, diversification of the means ofcapital fund-raising, human resource reference,
cashless adaptation, digital transformation, etc.
 Initiatives in the maturity / regeneration stages▶ Assisting project handling by bank branches / management
succession support office, collaboration with specialized
consultants, and hands-on help

20/3

22/3

 Using Juroku Bank’s customer base andcollaborating with Juroku ResearchInstitute to increase successful cases
Number of

Number of

採用先数
employers

people
採用人数(people）

 Engaging owners in in-depth dialog tosteadily increase the number of M&A
consultation cases, with 31 successful
cases over the last 2 years(cases）

Consultation
相談件数
cases

recruited

60

70

60

380

60
50

50
40

29

28

40
41

30

376

360
356

340

30
320
20

20
10

22/3

Ｍ&A

HR referral service(Employers）

21/3

Maturity /regeneration
stagesStabilitystage

 Initiatives in the foundation and growth stages

247

1,758

792
Offering
programs
専門 fordeveloping
人材育成
specialized
プログラム
human
resources

265
258

3,000
2,000

 Reinforcing solution-presenting capability

Net
売上高
sales

270

5,000
4,000

Priority
measure（100 million yen）

Reference
紹介件数
cases

21

16

10

0

0
20/3

21/3

22/3

300
302
280
20/3

21/3

22/3

35

Management strategy ～ Market-in approach strategy ～ Amassing the Group’s management resources to fulfill the consulting function
 Offering diverse solutions for various issues

Market-in approach strategy– Further exerting
problem-solving capacity –Juroku TT Securities
• Expand Group collaboration / alliance, and offer channels
optimized to the needs of customers to build a consultation
system toward establishing lifelong trading relations
Priority
measureBuilding a consultation system toward
establishing lifelong trading relations

 Enhancing face-to-face channels▶ Offering value-added solutions through bank-securities
partnership▶ Offering long-term perspectives in line with customers’ life plan
 Addressing the needs for non-face-to-face transactions▶ Developing smartphone-based systems for building assets andraising loan needs▶ Adopting cashless transactions for improved convenience

Juroku TT Securities steadily increased
deposit asset balance and the number of
securities account opened.
The Nagoya Sales Office was promoted to
the Nagoya Branch in April 2022.
Depositasset
預り資産残高balance（100 million
yen)

Reinforcing Group collaboration

Cashless payment

Juroku Card
Juroku Credit
Guarantee
Juroku TT
Securities

JurokuBank

Seniors

1,200

1,700

Home / education fund

1,869

Developing
consultation humanresources
Improving expertise

1,028

800

App function

20/3

80
60
54

40

10,000

20

8,000

0

21/3

21/3

22/3

Regular investment trust
The amount of monthly contribution toinvestment trust has steadily increased fromthe long-term perspective of asset formation
support.
Non-face-to-facechannelssuchassmartphones were actively used.
Contribution
掛込額/月/
month

1,000

Property management

600

Asset management

400

Number of (subscribers）
契約先数
subscribers

22,129816

25,000

22/3

Level-premium insurance

Level-premium insurance steadily increased
subscription cases as a way of forming
assets with fixed-sum contributions.

(cases）

Numberof
契約件数
subscribers

10,0009,353

20,0009,000

15,0008,000

10,000

7,000

5,000

6,000

482

8,923

7,186

200
233

Sales branches
Inheritance services /Estate settlement

104

13
600

0

Alliance

Referral
cases
紹介件数

16

800

Wealth Manager

14,00012,00012,377
Asset building

Accounts opened
口座開設件数(cases）
120

1,000

16,757
Consumption-type loan

20,00016,000（million yen)

Retiredgroup(accounts）

100

12,680Asset-building
group



18,0001,400Group-based consultation system toward establishing lifelong trading relations

Parentinggroup

19,6561,600

YouthsSupport in partnership with private trust
experts was offered to address growing
needs for asset management and succession
management.
The number of consultation cases rose as away of smooth asset succession from parents
to children’s generation.

Number of

17,354

1,800



口座数
accounts

2,000

 Strengthening alliance▶ Expanding trust and insurance services to cater to customer
needs

Customer
base
Information
Network

Referral of private trust experts

20/3

21/3

22/3

20/3

21/3

22/3

36

Management strategy ～ DX strategy ～ Enhancing non-face-to-face channels to improve product / service convenience and expand general transactions

DX strategy- Improving convenience -Introduction of Quick Navi

 Enhancing non-face-to-face channels to improve product/ service convenience and expand general transactions
 Adopting advanced marketing based on data to address
diversifying needs

Quick Navi was introduced to the front officeof all Juroku Bank branches in November
2021.
It improved customers’ convenience andpromoted paperless transactions, thanks tofeatures such as seal-less transactions,electronic signature, OCR scanning ofdriver’s license.

Juroku Cloud Factoring

Under partnership with OLTA, short-term
small funding is offered to cater to customers’
diversifying fundraising needs.

(cases）(million yen）
400
350

Acquisition
買取金額
amount350
304

Numberof cases
取扱件数

300

300

Priority
measure250① Enhancing non-face-to-face channels

250 Expanding transactions that are completed online

150▶ Expanding the functions of personal apps for improved
convenience▶ Building a platform as the gateway to corporate customers▶ Using a common platform for procedures to eliminate the useof seal and hardcopy forms in transactions

 Offering friction-less functions and services▶ Using tablet devices and AI in-store▶ Enhancing online functions and contents to broaden thescope of general transactions

 Sharing and utilizing information internally and externally▶ Offering new financial services based on open API▶ Offering timely information services based on data analysis▶ Forming alliance to deliver IT consulting

150
100
21/3

Enhancing non-face-to-face channels, with growthobserved in J Direct (personal customers) and
Biz-J Direct (business customers)（thousandpeople)22/3

Alliance

J Direct / Biz-J DirectForming alliance with external companies that
contribute to improving customers’ comfort
and boosting our productivity, thereby
promoting digital transformation（businesses）
JＪダイレクト（左軸）
Direct (left axis)

22,000Biz-J
Direct (right axis)
Ｂiz-Ｊダイレクト（右軸）② Data use and mass marketing

200

177

100

290

Priority
measure

361

182
200

270

258

21,00020,000250

234
19,000230

214

18,00018,149210
190

18,931

17,00016,84416,000170

15,000
20/3

21/3

22/3

37

Management strategy ～ DX strategy ～ Streamlining business with digital technology to optimize the distribution of management assets

DX strategy- Improving productivity -Tablet PCs
Reducing work volume

Accelerating the introduction of tablet PCs toboost convenience and productivity Enhancing non-face-to-face channels to improve product/ service convenience and expand general transactions
 Adopting advanced marketing based on data to address
diversifying needs（10,000 hours）（台）
Number of tablet
タブレット台数

2,000① Creating human resources in high-growthareas through work streamlining Improving work processes and optimizing
distribution of management resources
▶
▶
▶
▶

the

140

1,800
1,930

Utilizing workflow systems, teleconferencing, digital forms, etc. tocreate extra time for business activities
Using in-store tablet devices to shorten time for administration
Using digital technology to reduce back-office work and centralize itto the head office
Deploying human resources strategically from administration to highgrowth areas such as FA and Group companies

Priority
measure② Work-style reform and digitaltransformation support

 Work style reform and HR development▶
▶
▶

Expanding remote work to facilitate diverse work styles
Using IT tools to expand remote sales activities
Developing human resources in digital technology through alliance and ICT
solutions

60

1,000

Loan
work
融資業務削減reduction

128.7

Depositwork
預金業務削減reduction

37.1

86.3
70.０

20

91.6

31.5

30.0
54.8

40
935

600

40.0

0
20/3

21/3

22/3

20/3

21/3

22/3

23/3
（計画）
（Plan）

Redeployment of staff to growth areas
 Redeploying human resources togrowth areas across the Group to
further boost the consulting service
function and Group synergy(people)（人）

Staffing at growth

成長分野人員
areas

1,000
1,000
900
922
800

Using alliance to promote customers’ digital transformation
Utilizing Group companies’ functions to facilitate cashless transactions bybusinesses and local communities
Building up digital transformation know-how such as teleworking, paperlesstransactions and table-based sales

700

▶

80

1,200

 Work Facilitating digital transformation of customers
and local communities
▶
▶

120
100

1,749

1,400

800

150

160

devices

1,600

Priority
measurePromoting the elimination of back-officeadministration at Juroku Bank’s sales offices
Planning to reduce administration work worth
1.5 million hours in the March 2023 term fromthe level recorded in the March 2017 term

834

21/3

22/3

23/3
（plan）
（計画）

M
a
i
n
g
r
o
w
t
h
a
r
e
a
s

Juroku Bank

FA and corporate accounts
Loans

Juroku Lease

Leasing sales

Juroku Card

Card sales

Juroku TT
Securities

Securities sales

Juroku Densan
Digital Service

ＤＸ salesKanda
Machiokoshi

Cloud funding38

Business launch of Juroku Densan Digital Service
 Juroku Densan Digital Service, a joint venture of Juroku Computer Service and Densan System Holdings, commenced business operations
on March 1, 2022.
 Upon the launch of the joint venture, it obtained a license as a non-bank banking-service enhancement company in the first such caselicensed after the amendment of the Banking Act in November 2021.

Company overview
Trade nameJuroku Densan Digital Service Co., Ltd.

Business launch

March 1, 2022

Paid-in capital

360 million yen

Shareholders’equity ratios

Juroku Financial GroupDensan System Holdings

60%
40%

Identifying customers’ issues throughconsultation and support in main
business fields
Offering DX-related support for solving
issuesSpreading business fromassociates to entire local
communities

Enhancement
axis ①DX
promotion forsolvingbusiness
associates’
issuesPromoting DX to solve businessassociates’ challenges
Offering Juroku FG’s DX
know-how to local
business associates

Revitalizing local communities with DX

Juroku Financial Group

Densan System Holdings
DX-based support
for addressing
population decline andaging population
DX-based support for
digital reforms of local
governments

Enhancemen
t axis ③
Advancemen
t of Juroku
FG’s DX
capability

Enhancement axis ②
Local
revitalizati
on with DX

Deploying
Juroku FG’s local
revitalization initiatives
in the DX approachImproving Juroku FG’s
IT insight and capability
Promoting own RPA tostreamline operations
Helping customers
improve UI / UX in a
speedy manner

Offering IT consultation to business associates to facilitate their
DX in main businesses, and implementing Fintech initiative
Providing diverse and convenient payment-clearing services
Forming alliance with local IT companies to promote local DXPromoting local governments’ DX in synch with their digitalreforms
Enhancing tax / public dues collection work
Promoting DX in medical and educational organizations

Boosting Juroku FG Group’s DX
capabilityWorking toward swift product / service development
Achieving sustainable development and implementation of AI / RPA
Improving Juroku FG Group’s overall IT skills (staff / organization)(UI/UX: User interface and user experience)(※) A non-bank banking-service enhancement company is a type of subsidiary for a banking holding company, as defined in Article 52-23 Paragraph 1 Item 14 of the Banking Act.
Following the amendment of the Banking Act in November 2021, the scope of business permitted to a banking service enhancement company was relaxed, allowing “work that contributeto building a sustainable society such as revitalizing local communities and improving industrial productivity”.

39Collaboration with Softbank for DX promotion
 Effectively utilizing technologies, assets and know-how held by Softbank and us to revitalize and contribute to local communities

Collaboration with Softbank for DX promotion

Purpose of the collaboration
Listing “DX strategy” as one of the main pillars of management plan, the Juroku Financial Group is working on supporting digital transformationof customers and local communities, improving comfort and convenience of products and services, streamlining the Group’s work operations
and boosting productivity as priority measures. The latest collaboration with Softbank for DX promotion will effectively utilize technologies,
assets and know-how held by the two companies in order to revitalize and contribute to local communities.

Specific details of DX promotion（１）

Digitizing the Group’s points of customer contact to improve customer loyalty（２）

Utilizing and analyzing data to enhance the Group’s marketing and promotion activities（３）

Using digital technology to improve the efficiency and comfort of the Group’s work
operations（４）

Developing human resources in the digital field through networking（５）

Creating new businesses through Open Innovation（６）

Forming partnerships in the fields of cashless transactions and payment clearing

Accepting human resources
Number of people
accepted
Titles at the Group
Accepted date
Accepting format

2① General Manager of the Group Corporate PlanningManagement Division (in charge of digital reforms)② Senior Manager of the Group Digital Management Office
May 1, 2022
On loan40

Management strategy ～ Local commitment strategy ～ Playing a central role in revitalizing local communities through expansion of business categories

Local commitment strategy– Comprehensive local design –Creating local brands Establishing solid relations with local stakeholders andfurther expanding business categories as a general
financial group to deploy financial services that contributeto the development of the local economy, thereby
contributing to local revitalization

Priority
measure① Boosting the appeal of
local communities

Project name

Gifu Brand Metropolis
Dissemination Project

Branding local delicacies and disseminating their information in large
cities for PR▶

Number ofsessions

Total businesscases

March 2022 term

11 times

215 cases

Cumulative total(※)

40 times

579 cases

Utilizing local resources / supporting local governments Utilizing local resources▶

Period(※) Including figures from the preceding “Gifu Brand Metropolitan Dissemination Project”

 Creating local brands▶

Holding business sessions under the Gifu Brand Metropolitan Dissemination Project since September 2018 as the venue forbusiness negotiations between Gifu-based vendors and prominent buyers in the Tokyo metropolitan area
Expanding the target areas to Nagoya and Kansai regions in FY2020 to operate as the Gifu Brand Metropolis Dissemination
Project, facilitating Gifu-based vendors’ entry into major cities and creation of Gifu brandJuroku Bank starting collaboration with Stroly, which supports the digitization of illustrated maps
Providing the Stroly digital map service to promote paperless transactions, digitization of visitor data andimprovement of user convenience, thereby supporting digital transformation of local governments / local
businesses and boosting the appeal of local areas to promote tourism

Rediscovering local resources and implementing measures to boost
local appeal to promote tourism
Coordinating industrial – bureaucratic – academic partnership toassist the development of new products

 Creating new business▶
▶

Assisting business creation and forming local communities
Expanding alliance and considering to establish communitydevelopment companies

Priority
measure② Providing assistance in solving
local issues

 Revitalizing central business districts▶

Facilitating urban redevelopment projects, PPP / PFI projects andfunds to revitalize local cities and encourage people to move in Assisting local government bodies’ work streamlining▶

Facilitating cashless transaction response and contracting public
services (policy adviser), etc.

Industrial – bureaucratic – academic partnership to support product development

Juroku Bank signing industrial – academic partnership agreements with 16
local universities
Using the industrial – academic partnership to collaborate with students insupport of local businesses developing new products
As an industrial – academic partnership project with Gifu University, Juroku
Bank launched the Kururu Seminar in October 2001 for seniors with theaim of building a society where people stay active all life and revitalizing
local communities. The seminar marked its 20th anniversary in October
2021, boasting over 20,000 participants in total.

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Establishing Kanda Machiokoshi Co., Ltd.
 Kanda Machiokoshi was established on April 1, 2022 to take on responsibilities toward sustainable growth of local communities and tocontribute to the revitalization of local communities.
 Similarly to Juroku Densan Digital Service, this company obtained a license as a non-bank banking-service enhancement company uponlaunch.

Company overview
Trade nameKanda Machiokoshi Co., Ltd.

Establishment

April 1, 2022

Paid-in capital

80 million yen

Shareholders’equity ratios

Juroku Financial GroupMusic Securities Inc.

９９%
１％
New money
flow

Basic Industry
Renovation

Tourism marketing（DMO）support businessHelping local communities maximize their“earning potential” through tourism andimprove their economic cycle, in order tofacilitate“sustainable
tourismdevelopment” in post-COVID world

Supporting
str uctur alr efor m s offoundatio nindustr ies

Creating new money-flow
to local communities

Social impact investment
business
Using the cloud-funding method to supply
growth funds for solving local issues, andcreating new money-flow

Hometown Tax support
business
Utilizing the Hometown Tax system (forcompanies and individuals) to support local
governments and businesses wishing tosolve local issues

Kanda Machiokoshi

Community renovation
business
Renovating and upgrading lands and buildings ascommunity centers to revitalize local industries
and communities, boosting the area’s value

Area Design/Management
C o m m i t t i n g t o
c o m m u n i t y
d e v e l o p m e n t
a n d a r e a d e s i g n

Achieving growth andenrichment ofcustomers and local
communities

SocialEmpowerment

H e l p i n g
s o c i a lt o s o l v e
i s s u e sDiverse work style support
business
Connecting community-based projects,
companies and non-profit organizations
with human resources with problem-solving
capability in diverse forms for revitalization

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Management strategy ～ Local commitment strategy ～ Deepening initiatives for SDGs and local revitalization by Group directors and employees

Local commitment strategy– Comprehensive local design – Deploying suitable human resources to optimum positions
and streamlining work processes to create extra time forbusiness activities, while boosting awareness on SDGs
and community revitalization to deepen initiatives
 Working with local businesses, business associates andlocal communities to take on local and environmental
issues in order to establish a sustainable society
Priority
measure① Deepening Group’s initiatives for
SDGs and local revitalization

Supporting decarbonized business management for local companies Offering decarbonization consultation as a one-stop-shop service to help local customers with theirdecarbonization initiatives
 Building a platform for promoting the use of the “Carbon Offset” program using the offset credits (JVER) held by Gifu Prefecture Forestry Corporation and Kiso Sansen Water Source Development
Corporation
Number of support cases using “Carbon Neutral Navigator supported byWasteBox,” a consultation service for decarbonized business
management (FY2021 figure)

４７

Number of referral cases for the offset credits (J-VER) held by Gifu
Prefecture Forestry Corporation and Kiso Sansen Water Source
Development Corporation (FY2021 figure)

２３

Product and service development project team “Jewelia” consisting of female staff Environment▶ Initiatives for decarbonization and CO2 reduction▶ Disclosure of climate change impact

 Society▶ Connection with customers and local communities at
Group sites▶ Diversity promotion, women’s empowerment and HR
development that takes advantage of diverse capabilities
 Governance▶ Business management that makes use of external knowledge
and insight▶ Enhanced compliance system

IMD Professor Kazuo Ichijo becoming the Executive Advisor
Priority
measure② Assisting SDGs initiatives bycustomers and local communities

In February 2020, a female-only project team for product andservice development, called Jewelia, was established with theaim of utilizing women’s perspectives and sensitivity to offer newvalue that contributes to community revitalization
Jewelia’s “Skill Matching by Glass Slipper Project” for connecting
women with skills and qualifications useful in society to local
companies, received commendation in 2021 as a financial
institution’s “characteristic initiative” that contributes to local
revitalization

Inviting world-renowned economist Kazuo Ichijo, the only
Japanese professor of the internationally prestigious
business school IMD, as the Executive Advisor
Engaging in periodical dialogs with our executives andproviding us with latest management-related information toassist our business management as a whole Support for SDGs initiatives by corporate clients▶ Support for the introduction of SDGs-based management

 Support for SDGs initiatives by local communities▶ Educational and cultural activities, emergency preparedness43Juroku Financial Group’s growth strategy
 Forming “cross-industrial collaboration” for partnerships and joint ventures with companies that have mutual trust and understanding
to drive business growthManagement amalgamation
within the industry

Management
amalgamation

Within theindustry

Business partnership within
the industry

Business partnership

Business expansion
as growth strategy

Cross-industry collaboration

With otherindustries

Collaborationand joint
venturesMain initiatives for collaborationand joint ventures

Tokai Tokyo Financial Holdings
Densan System Holdings

Juroku Bank
44