March 28, 2019
Company name: Mebuki Financial Group, Inc.
Representative: Ritsuo Sasajima, President(Code number: 7167 First Section
Tokyo Stock Exchange)

Launch of the Second Medium-Term Group Business Plan
Mebuki Financial Group, Inc. (President: Ritsuo Sasajima) has launched its second medium-termgroup business plan for the period from FY2019 to FY2021 and we hereby announce its summary.
Description
1. Time frame
3 years (from April 2019 to March 2022)
2. Vision
Building the region's future as a comprehensive financial service group (※1)(※1) This vision represents that the group will maintain and promote the relationships with customers and localcommunities as well as the deep understanding of local communities that both banks have developed over theyears. At the same time, the group will use its wide-area network to expand its zone of economic interactions,
expand the scale and scope of comprehensive financial services that it offers, and grow along with communities
by promoting the development of local industries, the revitalization of local economies, and the creation of newmarkets.
This vision has not changed since established in the first medium-term group business plan.

3. Basic Strategy
The second medium-term group business plan is positioned to achieve full-scale growth and be atransition to the next growth period. We will promote structural reform mainly of business process andorganization, and generate management resources through the integration of our core system. We
will invest those resources into areas of consulting services and IT, and create growth businessmodels together with the local region.
(1) Create growth business models with local regions
While providing consulting services and utilizing IT services and data, we will support
customers grow and resolve problems. Through utilizing resources owned by the group toexpand our business area, we will create growth business models together with local regions.
(2) Structural reform for enhanced productivity
We will promote structural reform mainly of business process and organization, and generatemanagement resources through the integration of our core system. We will invest thoseresources into areas of consulting services and IT. At the same time, we will work to upgrade thegroup-wide business management system and strengthen the group governance system.
(3) Developing human resources for value creation
We will promote the development of specialized human resources by strengthening support fordeveloping skills through the use of external information and human resources exchange, andbuild up the human resources group required for the implementation of the second mid-term plan.
We will expand various working styles to promote work-life balance, and create a system torealize contribution to customers and the local region through the display of consulting functions,
all while leading to higher job satisfaction for employees.

4. Business objectives
Business objective indicator

Target of FY2021

ROE (Consolidated)

5.0% or more

Net Income (Consolidated)about ¥47 bn

Core OHR (※2)

around 60%(※2) Core OHR = Expenses (excluding non–recurrent expense) / (Gross business profit – gains/losses on bond transactions)End

Inquires:

Corporate Planning Department

Toshihiko Ono+81-29-300-2605

Mebuki FG Second Medium-Term Group Business Plan（Apr. 2019～Mar. 2022）
 We will promote structural reform mainly of business process and organization, and generatemanagement resources through the integration of our core system. We will invest those resources intoareas of consulting services and IT, and create growth business models together with the local region.
Building the region's future as a comprehensive
financial service group

VisionBusinessobjectives

ROE (Consolidated)
Net Income (Consolidated)(Target of FY2021) Core OHR*(total)

5.0% or more
about ¥47 bn
around 60%(* excluding system integration expenses)

Basic Strategy (3 Pillars)Group strengths(1) Create growth business models with local regions
 Enhance consulting services
 Proactively utilize and investment in IT(2) Structural reform for enhanced productivity Establish common platform(3) Developing human resources for value creation

Main Measures
Wide range of
support services

Support for asset
building

Asset Management

Enhanceconvenience / BPR

Support fordigitalization

Cashless services

Integrate core system(in Jan.2020)

Consolidate head
office functions

Relocation ofbranches and staff

Developing experts /Training staff

Work style reform/
Work-life balance

Higher employee
satisfaction

Position of 2nd group business plan
Integrate core system Achieve full-scale growth
in Jan.2020

Transitional period to next growth

Level ofprofit forcustomerservices

Revenues fromconsulting services

Invest in growthEstablish newbusiness models

Synergy full-scale realization
 Integrate core system (first year) Establish common platform

Restructuring/ Shift management resourcesPeople(personnel)【Invest】
200 people ：Consulting/ IT planning, etc.
【Save】 1,000 people ： Administration/ Head office, etc.

【IT】 3 years total： ¥15 bn (up ¥4 bn by the same period)(investment) 【Branches】 Improve branch efficiency by 20% (Reorganization)
Enhance productivity
Reduce cost（Operation/Organization）

2019

Provide comprehensive services
 Banking/ Leases/ Securities Card/ Computer/ Think tankThings

Structural reform2018

Solid customer base 30 thousand corporate customers
 1.8 mil individual bank accounts

Money(expenses)

2020

2021

FY2022～【Cost reduction by structural reform】¥ 5 bn or more

“Expenses after FY2022” －” Expenses of FY2018”（excluding system integration expenses）

0