The Chiba Bank, Ltd.
IR Day (Part 2)
April 8, 2024

Event Summary[Company Name]

The Chiba Bank, Ltd.

[Event Name]

IR Day (Part 2)[Date]

April 8, 2024

[Time]

16:15 – 17:10(Total: 55 minutes, Presentation: 29 minutes, Q&A: 26 minutes)[Number of Speakers]

5
Tsutomu Yonemoto
Mutsumi Awaji

Yuko Tashima

Yasuko Takayama
Akira Eshita

President, Group Chief Executive Officer
Director and Senior Executive Officer, Group
Chief Strategy Officer, Group Chief Digital
Transformation Officer
Non-Standing Director (Outside Director andChairman of the Appointment, Remuneration
and Corporate Advisory Committee)
Non-Standing Director (Outside Director andChairman of the Board of Directors)
Executive Officer, General Manager ofCorporate Planning DivisionAwaji: Good afternoon, everyone. My name is Awaji. I will now discuss our growth strategy, focusing on our
Digital Transformation (DX) strategy, which is a key component.

Please turn to page three.
First, an overview of our DX strategy.
Since 2017, we have initiated our DX strategy as Chibagin DX 1.0. In 1.0, we built a fintech joint platform, a
digital service provision foundation in collaboration with banks participating TSUBASA Alliance, laying the
groundwork.
Then, in our medium-term plan starting from 2020, Chibagin DX 2.0 introduced digital infrastructure such asapps and a corporate portal, advancing paperless and seal-less processes, and we began to focus ondeveloping digital talent to carry forward our DX efforts.
Our new DX strategy, Chibagin DX 3.0, is based on maximizing the use of the digital infrastructure we havedeveloped so far to provide our customers with the best Chibagin experience, that is, the creation of the best
customer experience as our basic policy.

1Please turn to page four.
There are two main pillars of our strategy for creating the best customer experience. The first is the
personalization strategy. This involves delivering the most suitable proposals to each individual customer.
The second is the regional ecosystem strategy. This connects our corporate and individual customers within
the region, revitalizing the local economic cycle.
Over the past year, we have been advancing our core financial business and creating new non-financial
businesses across our group. In financial operations, we have improved the functions of our digital
infrastructure, such as apps and the corporate portal. In non-financial operations, we have expanded into theadvertising business, which was fully launched last October, and have been advancing the business domain of
the Chibagin Market.
As shown at the bottom of the diagram, digital marketing is a fundamental measure supporting the creationof the best customer experience in both financial and non-financial aspects. Similarly, by continuing thedevelopment of DX talent, we will accelerate the overall strategy.

2Please turn to page five.
In our personalization strategy, we aim to make timely proposals through the optimal real or digital channels,
including non-financial services, by utilizing the data of our customers who use our services.
On the left side of the diagram, analysis of data is becoming capable of inferring each customer’s backgroundand situation. This enables us to predict customers’ needs and their future life plans, allowing for proposals
that are optimized for their life stages, as shown at the top of the diagram.
We believe that by getting customers to understand and accept these approaches and proposals, thereby
broadening their usage, we can turn them into fans.

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Please turn to page six.
The other pillar is our regional ecosystem strategy, which aims to revitalize the local economy by connecting
local customers and businesses through our services. We believe that our efforts in cashless transactions,advertising business, Chibagin Market’s crowdfunding, and the provision of ecommerce sites are elements of
the regional ecosystem.
Additionally, these initiatives accumulate data. By leveraging these data, we believe we can further accelerate
our personalization strategy and lead to the creation of the best customer experience.

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Please turn to page eight.
I will explain about individual strategies.
First, our vision for digital marketing. This diagram represents the goal of our sales activities utilizing data. The
number of touchpoints with customers and digital transactions has increased through our DX strategy,
allowing us to accumulate more data.
Traditionally, data accumulation for customers with accounts was limited to simple demographic data.
However, as transactions through digital tools increase, we can accumulate behavioral information about
customers. By analyzing these data, we can more clearly understand customers’ lifestyles and interests,
increasing the resolution with which we view our customers.
Based on these, the headquarters will promote personalized digital marketing to all account holders.
Moreover, branches will establish a system to make proposals at the optimal timing to customers, based on
the analysis results returned from the headquarters.

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Please turn to page nine.
I will explain about the analysis and marketing infrastructure.
Traditional one-to-one marketing analyzed customer attributes and transaction data to infer needs and send
suitable guidance via email. This was a uniform marketing approach where behavioral data fromadvertisements and apps were not integrated.
By establishing this marketing infrastructure, we can now centrally manage and analyze data that couldn’t belinked before. This also enables us to approach customers not uniformly but through the most frequently used
tools by the customers.
Furthermore, by utilizing AI, we can accelerate the PDCA cycle, from analyzing data with enhanced customer
resolution, creating strategies from this analysis, and measuring the effectiveness of these strategies.

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Please turn to page 10.
Timely proposals utilizing this analysis and marketing foundation can also transform customer experiences.
As President Yonemoto explained earlier, we have already achieved the capability to approach customers atjust the right time based on their interests, and we recognize that we are steadily working toward theenvisioned state of sales activities utilizing data.
When customers have something they are interested in, Chibagin proposes timely suggestions during visits or
through app notifications. We aim to increase such customer experiences and thereby increase the numberof fans of our group.

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Please turn to page 11.
In the app, as of February this year, we have added functionality such as applications for fixed-rate mortgages
and inquiries into transaction details, and we intend to further enhance the app’s functionalities.
As of the end of March, the number of registrants is 970 thousand, with approximately 150 thousand users
utilizing the app daily. Our medium-term goal of 1.5 million registrants would mean one in four Chiba
Prefecture residents uses our service, and we are on track to achieve this plan.
Moving forward, we aim to expand personalized features that can be used according to each individual
customer, such as household account book diagnostics and life plan simulations, creating a world where we
can have conversations with customers on the app.

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Please turn to page 12.
As President Yonemoto also mentioned earlier, currently, we have 3 million active account customers, with
970 thousand app registrants, which is a 33% penetration rate. Additionally, 30% to 40% of transactions haveshifted to digital, and we believe that as this penetration increases, costs will be concurrently reduced.

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Please turn to page 13.
Regarding the corporate portal, we are working toward creating a functional portal site that is easy tounderstand for all customers. By providing banking services that can be completed through the portal, suchas deposits, loans, foreign exchange, and various notifications, we aim to be a bank that is close to customers
not just in real life but also digitally.
The number of contracts has reached 45 thousand. The penetration rate to loan customers is 65%, and weare aiming for 70% in the final year of the medium-term plan. We are making steady progress.

10Please turn to page 14.
Regarding cashless transactions, as mentioned earlier, the number of members has exceeded 900 thousand,the number of franchise locations has surpassed 50 thousand, and the annual transaction volume has reached
JPY750 billion. In the final year, we aim for 1.18 million members, 68 thousand franchise locations, and atransaction volume of JPY1 trillion.
We completed the reorganization of group companies in April, and we will proceed with the consolidation of
overlapping functions to improve back-office efficiency.
Additionally, regarding sales to franchise locations, proposals were previously made by separate
representatives for JCB and other brands. After the reorganization, it will be possible to make one-stop
proposals for all brands, which we believe will improve customer convenience.
Furthermore, we plan to aggressively expand functionalities, including new collaborations with POS register
vendors and strengthening integration with Visa debit cards through the app.
Looking at Japan as a whole, the government aims to increase the cashless payment ratio from 36% in 2022
to 40% by 2025, and eventually to 80%. The transaction volume of credit cards is also growing, and we believe
cashless transactions are a sector expected to see further growth.

11Please turn to page 15.
This page is about new businesses.
For the metaverse, as shown in the top left, we conducted a trial of a housing exhibition in collaboration withlocal housing businesses. This was the first initiative by a financial institution, attracting over 1,000 visitors.
The metaverse is not only familiar to younger generations but we consider it a communication tool that canappeal to customers interested in digital technologies across all age groups. We have been accumulatingknow-how on using this metaverse space as a venue for gathering customers. Going forward, we aim to movefrom proof of concept to the introduction phase, increasing the situations where it can be utilized.
Regarding BaaS at the bottom, we aim to form a regional ecosystem by providing platforms such as apps andcashless services.

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Please turn to page 16.
On the left side, regarding the regional trading company, Chibagin Market, we continue to promote anddiscover Chiba’s attractions through our crowdfunding and ecommerce site platforms. As step 2, we aremoving forward with a small start on concierge services related to housing purchases. This concierge service
utilizes data to identify customers who are highly likely to purchase a home and provides them withinformation. When these customers’ needs become apparent, we offer a series of services including homeloans.
In step 2, not only housing but also concierge services in the automotive sector are being considered. We
started providing services to group employees as a small start, aiming to identify needs and issues to refine
the service before offering it to a broader range of customers.

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Please turn to page 17.
We started two pillars of the advertising business—advertising media business and advertising consulting
services—in all stores from last October.
Regarding the advertising media business on the top right, this involves offering the bank’s digital signage andapp media for advertising. In total, we have 663 advertising slots across various locations. While we are
gradually expanding our media offerings, there has been more interest from customers than expected since
the start, with a current contract rate of 34%, which is very favorable.
Also, as the app serves as an advertising medium, we believe its appeal will increase as more customers use
it. We will strengthen the structure of our advertising business to further expand our media offerings.
On the bottom left is our advertising consulting service. Onionnews Inc., in which we hold a 20% stake,specializes in web advertising. By supporting customers’ web advertising operations, we believe this can leadto support for financing and other management challenges.

14Please turn to page 18.
On the left side, we have the On Ad remote financial consulting service.
In an effort to strengthen our approach to financial wellness, we have started contracting corporate services.
In paid consultations, 98% are satisfied with the content, and 95% intend to use it again, showing highsatisfaction levels.
On the right side, we have a joint business plan with Google Cloud. This involves enhancing one-to-one
marketing through the use of Google’s marketing tools and Google Cloud.

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Please turn to page 19.
This page is about operational efficiency.
In terms of store operations, the newly opened Hamamatsucho and Mito branches have achieved operations
without teller counters or internal inspection staffs.
Specifically, we use a tele-presence system called “Mado,” a monitor that allows procedures with
headquarters staff through remote transactions with high-quality imagery as if the person is actually there.
The development of TSUBASA smile for paperless procedures and the introduction of a remote authentication
platform have enabled us to realize stores without teller counters or internal staff seats.
For remote channels, especially for time-consuming inheritance procedures, we are currently accepting
reservations for remote visits. As the number of cases increases, we are expanding our acceptance structure.
Our efforts in operational efficiency have resulted in a cumulative reduction of 550 thousand hours since 2020.
We aim for a target of 730 thousand hours in the final year of the medium-term plan and will continue withvarious efficiency measures and business improvement efforts using the proposal system.

16Please proceed to page 21.
Regarding organizational transformation, first is the development of DX talent.
In October 2021, we introduced a DX certification system, as shown on the left. We are systematicallydeveloping personnel in three stages. At the start of the medium-term plan, we set a goal for the number of
personnel to be trained, and for DX base personnel, we are currently making steady progress at about 80%
toward the goal of 2,000 people.
Regarding DX trainees on the bottom right, we plan to have a total of 60 people during the medium-term
period, aiming to increase our core personnel.
For the development of specialists with higher expertise, from this H2 of the year, we are considering
implementing customized training tailored to each individual’s skills. Now that we have been able to increase
our base personnel, we will strengthen the development of personnel with more advanced skills toward
accelerating our DX strategy.

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Please proceed to page 22.
On the left side, we have specialist and career recruitment.
The number of mid-career hires for the fiscal year ending March 2024 has increased to 100, more than triplethat of the previous period, with DX and cashless, among others, accounting for a quarter of these hires.
Today, with us at the venue, is Ms. Ito, the Head of Digital Strategy. He joined Chiba Bank in 2021 throughmid-career recruitment. After gaining experience focusing on the digital field at several companies, he ismaking a significant contribution as our first management position hire from a non-financial institution. He is
not only involved in formulating our medium-term DX strategy but also in leading the launch of the advertisingbusiness introduced earlier and the joint business plan with Google Cloud, as well as sharing knowledge withvarious related departments, elevating the overall DX consciousness and knowledge within the bank.
To expand mid-career recruitment, we have established a professional career track, and for new graduate
hiring, we are also implementing recruitment in three specialized tracks, including digital.

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Please turn to page 23.
As an effort to raise the overall organization’s awareness of DX, I’d like to introduce the Idea Pitch Contest
that we’ve been conducting since 2021.
We held the fifth contest this February. Until now, I was the chair of the judging panel, but we changed thechairperson to the President and expanded the participation to the entire Group. As a result, as you can see
in the bar graph the number of applications was the highest ever, with applications coming from various partsof the Company including headquarters, branches, affiliated companies, and even part-time staff. The
proposals have become more sophisticated, growing into a company-wide initiative.
Now, let’s take a look at a video digest of the actual pitch event on the previous screen.
[Video Begins]
How was it? The friend referral campaign has already been implemented, and we are currently considering
the catalog gift service. These initiatives aim to permeate our purpose, vision, and medium-term plan, and tocultivate a culture that is not afraid of failure and encourages challenges. I believe this is also leading to thereform of our organizational culture.

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Please turn to page 24.
The DX Supporter system on the left is a scheme to gather feedback from employees, with over 2,000 staff
participating. Through surveys and proof-of-concept experiments, we collect frank feedback from a customer
perspective to improve our services.
On the right is the Innovation Lounge. We have provided digital experiences, including app campaigns andvirtual reality. Moving forward, we aim to use it as a space for connecting with the region and experiencing
our bank’s initiatives, as well as for test marketing purposes.
This photo shows customers wearing virtual reality headsets and playing games.

20Please turn to page 26.
Regarding fans, by creating the best customer experience, we categorize our relationships with customers
into those who just hold an account with us, which is somewhat unilateral but we aim to turn into fans.
Customers who utilize their accounts are considered slight fans. Customers using our products are fans, andthose using two or more products, engaging in cross-use, are called big fans, a unilateral naming but we aim
to gradually transition customers upward.
On the upper right, regarding the change in customer composition, the proportion of digital customers was
25% at the start of the medium-term plan and is currently at 30%. We aim to increase this to over 40% by theend of the medium-term plan.
On the bottom right, the revenue structure. Digital and non-digital combined, we are targeting JPY43.9 billion
for the final year of the medium-term plan. We aim to increase it by JPY6 billion during the medium-term
period, and currently, it has already increased by JPY2 billion. The proportion of revenue from digital
customers has been increasing, from 46% at the start of the medium-term plan to over 50% currently.

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Please turn to page 27.
The content on this page was already explained by Yonemoto.

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Let’s move on.
Please turn to page 28.
This is an overview of the DX strategy. It encompasses digital channels, face-to-face channels, remote channels,
and non-financial businesses.
We believe the DX strategy will accelerate by creating a virtuous cycle of increasing transactions andreallocating personnel to growth areas, and further advancing one-to-one marketing utilizing data. In thefinancial business, we aim to enhance the functions of real, remote, and digital channels, and in the nonfinancial business, we want to expand our lineup to meet a wide range of needs, including advertising andregional trading companies.
We will continue to enhance the functions of apps and portals, aiming to create a situation where customers
can interact with us anytime, anywhere. Additionally, in face-to-face channels, by reallocating and training
personnel, we will strengthen our consulting functions for corporate and individual customers.
Furthermore, utilizing remote channels, which lie between real and digital, currently applied to inheritanceprocedures, we believe we can establish a system that doesn’t keep customers waiting by handling specialized
procedures and consultations.
By enhancing the functions of each channel and making proposals through the optimal channels, we aim tocreate the best customer experience and increase the number of Chibagin fans.
That concludes my presentation.
Thank you.

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