The Chiba Bank website[IR Library]

April 10, 2023

Table of Contents

Overview of the 15th Mid-term Plan

Basic Policy Overview

１．Defining our Purpose and Vision
Looking back at the previous Mid-term Plan
Awareness of the Business Environment
Defining our Purpose and Vision
Delivering Societal Value to our Stakeholders

3
4
5
6

２．The New Mid-term Plan
Overview of the 15th Mid-term Plan
Growth Strategy / Structural Reform
The 15th Mid-term Plan Earnings Targets
Net Interest Income ①
Net Interest Income ②
Net Fees and Commissions
G&A / Credit-related Expenses
Capital Strategy / Investment Plan

8
9
10
11
12
13
14
15

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Operational Guidelines (evolution of the customer-focused business model)
Retail Customer Journey
Corporate Customer Journey
Basic Policy I: Enhance One-to-One Marketing
Basic Policy II: Retail Business ①
Retail Business ②
Corporate Business
Basic Policy III: New Business ①
New Business ②

17
18
19
20
21
22
23
24
25

Value Creation Bases
Base I: DX Strategy
Base II: GX
Base III: Alliances
Collaboration with Other Industries
Base IV: Creation of HR Policy / Overview of HR Strategy
Base V: Group Governance

1

27
28
29
30
31
32

1
1

Defining our Purpose and Vision2
2

Looking back at the previous Mid-term Plan
Major Achievements of Management Goals(billion yen)

Basic Policy 1

Continue to evolve closely with our customers

Basic Policy 2

Continue to create new value for our customers’ futures

Make proposals based on
individual life plans
Enhance Corporate Solutions

Virtual residential loan contract
signing
Establish new Area Sales divisions

Expand cashless operations

Establishment of Chibagin Market
Co., Ltd.

Establishment of On Ad Co., Ltd.

156.7

Gross
Business
Profit86.0

81.9
Expand app/portal features

161.5

156.0

152.7

84.5

G&A
Expenses

60.0
54.4

49.6

48.0
Profit attributable toowners of parent

Basic Policy 3Strengthen our Alliance Strategy
TSUBASA Alliance

Chiba-Musashino Alliance

Expand sharing of IT systems, including
smartphone app

Expand collaboration including cashless
operations with franchise locations.

2020/32021/32022/3Chiba-Yokohama Partnership

Progress

KPIs for FY2022

Basic Policy 4

Achieve sustainable management

Profit attributable to owners of parent
Consolidated ROE

Promotion of sustainable finance

Enhance carbon-neutral initiatives

Expand climate-related disclosures

Development of DX personnel

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2023/3(disclosed)

Alliance with Sony Bank

Strengthen collaboration, including customer
support82.5

Non-consolidated OHR

Expectedachievement

60.0 billion yen

60.0 billion yen (disclosed 11/2022)

Around 6.5％

6.35% (disclosed 11/2022)

Lower 50% range

49.0％ (disclosed 11/2022)

Net business income per employee: 19.0 million yen (disclosed 11/2022)

3
3

Awareness of the Business Environment

Societal changes◼
◼
◼
◼

Acceleration of digitalization
Living with COVID-19
Intensification of climate change
Emerging geo-political risk

Re-evaluation of the Bank’s purpose andideal position as a regional financial
institution

Period of irreversible
changes◼ Changing values◼ Changing behavioral patterns

Emerging regional
issuesWhy does the Bank Group
exist in society?

VisionUniversal

Individual (consumer)changes

PurposeWhat position should
we aim for?

Increased Bank Group
operational potential

Policy Trends◼ A new capitalism◼ Impact of CBDC implementation◼ Softening of regulations

Diversification of needs

Strategy for achieving
our Purpose and Vision

Trends in Chiba
Prefecture

◼
◼
◼
◼
◼

Completion of Ken-O expressway (2024)
Improve Narita Airport facilities (~2029)
Growing number of households
Population decline/aging population
Shortage of hospital beds in the pref.

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Flexible

What initiatives should we
pursue in the mid-term?

New Mid-term Plan

4
4

Defining our Purpose and Vision

To create a local community better suited to bringing each person’s hope to life

PurposeThe Bank Group exists to create “societal value” by contributing to the resolution of regional issues in addition to providing“functional value” to financial institutions.
In a constantly changing world, Chiba Bank aims to be “a place where our stakeholders’ hopes can come to life” within the region.
ⅰ Contribute to the resolution of regionalsocietal issues

Broaden horizons as a company
Functional
value

＋

Societalvalue

ⅱ Support for prosperous lifestyles

Each person’s hopeⅲ Offer an empathetic set of values

Companies / Investors

Sustainable growth

Individuals

Prosperous lifestyles

Employees

Self-actualization*Regional societal issues: a wide range of issues concerning the sustainability of the local community, such as COVID-19, digitalization, SDGs, regional revitalization

Vision

An Engagement Bank Group that works closely with the community“Engagement Bank Group”
A Bank Group that seeks to keep growing together along with the entire region by providing value through deep connections with all of its stakeholders
including customers, shareholders, and employees

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

55Delivering Societal Value to our Stakeholders
Building a bigger fanbase by increasing the corporate value of the Bank Group as a direct result ofaddressing societal issues within the region and bringing each of our stakeholders’ hopes to life
Societal Issues
Societal Changes
Population decline

Chibagin Group Solutions

Financialservices

Response to DX+

Non-financial
services

Diversification of values
Changing behavioral
patterns

Increase Stakeholder Engagement

Aging population

Response to GX

Addressing the Regions Societal Issues

Corporations,
local
governments

Sustainable corporate
growth in the region

Recruitment

Offer anempathetic set ofvalues= Build a fanbase

Prosperous lifestyles

RetailHigher income

Increased
Consumer spending

Employees

Job satisfaction/compensation

Investors

Dividends

Etc.

Increase Corporate Value

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6
6

The New Mid-term Plan

7
7

Overview of the 15th Mid-term Plan
The 15th Mid-term Plan Engagement Bank Group – Phase 1 –Title(Plan Period: April 2023 ~ March 2026)

Phase 2~

Operational Guideline: Evolution of the customer-focused business model■ Practice “Sustainable Management” by providing societal value to the community

Basic Policies

I. Creating the optimal customer experience

To create a local community
better suited to bringing
each person’s hope to life

Deliver personalized proposals utilizing a wide range of data.
Provide in-person, remote, and digital channels most-suited to thecustomer.

II. Enhancing the quality of existing businessIII. Providing new value

Further increase the quality of solutions designed
to address customer issues.

Provide new-found value to customers byentering into new business areas.

Bank Group
Development■ Expansion of “Value Creation Bases”

Bases

Base I

Base IIDX

Base III

GX

Base IV

Alliances

Base V

Human Capital

Goals for FY2030

Group GovernanceConsolidated ROEManagement
KPIs

8%

Profit attributable to owners of parent

Tier 1 common equity capital ratio*

Consolidated ROE

75.0 billion yen

10.5% ~ 11.5%

Above 7%

Profit attributable toowners of parent

Consolidated net business income

Consolidated OHR

100 billion yen

120.0 billion yen

45%*Basel III full implementation finalization basis(excluding valuation differences on securities)

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

88Growth Strategy / Structural Reform
Achieve targets through growth strategy and structural reform
GrowthStrategy

Fortify existing business by utilizing digital convenience/in-person expertise and make forays into new business areas, including non-financial services

Resource allocation
Improve services
through growthinvestments

Expand channels
Reallocated personnel: 370
HR development: 280 etc.

PeopleEnhanced call center
New branch
openings/operations review

ThingsEnhance organization of
Head Office experts

Increase gross profit per customer/company
through one-to-one marketing
・Increase loans (6% outside prefecture, 3% prefectural growth areas）
・Increase fee income (pursue convenience and expertise)

Raise the bar of branch
proposal capability
etc.

Expand service lineup
Strategic investments: 16.0 bil. yen
New policy expenses: 14.0 bil. yen

Money

Structural
ReformEvolution of our customer-focused business model(For more details, see P17~)

Use the profits toinvest in further
growthCreation of new business

Strengthen monetization of existing business and plant
the seeds for more new businessGovernance reform to maximally develop the potential of each business area and improve the Group’s organizational capabilities

Business Coordination Division
Cross-sectional
management of diverse
sales divisions

Create strategies foreach sales area

Sales representative
behavioral
management reform

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Group Strategy Division
Enhance governancethrough a dedicateddivision

Develop the potentialof Group companies

Consolidated
management ofGroup risk, etc.

Digital Strategy Division
Vertical integration ofdigital operations

Data analysis
HR development

Productivity reform

99

The 15th Mid-term Plan Earnings Targets
Contributions to net income from new business and DX, in addition to existing businessChange in profit attributable to owners of parent / ROE

FY2022(Billion yen) (discl.)

FY2025(plan)

ChangeNet interest income

156.7
135.9

194.0
147.6

37.3
11.7

Shareholder
capital basis

6.35%

Net fees and commissions

27.9

40.0

12.0

TSE standard

5.58%

Other gross business profit

-7.1

6.3

13.5

(billion yen)

-13.2

2.1

15.3

G&A expenses (-)

82.5

88.0

5.4

Business profit

74.1

106.0

31.8

87.3

103.9

16.5

Non-consolidated

Gross business profit

Bond-related gains/losses

Core business income
Excl. gains/losses on the cancelationof trusts

Net business income

81.9

100.4

18.5

76.7

105.8

29.0

3.2

-4.2

-7.4

7.5

5.0

-2.5

Ordinary profit

80.0

101.6

21.6

Net income

57.0

71.5

14.5

Credit-related expenses (-)

2.5

8.0

5.4

Extraordinary profit/loss
Stock-related gains/losses

FY2022ROE

FY2030Above 7%8%

100.0
Above 6%

7%

Profit attributable toowners of parent

New business / DX

75.0

Refine existing
business

60.0

FY2022

FY2025

FY2030(disclosed)(plan)(plan)

Impact of removalof YCC, negativeinterest rates
Increase of

Rebound of losses fromsales related to bondreplacement +12.5＋5.0 billion yen
Other
+13.5

Net feesand commissions+12.0
Net interest
income+11.7(billion yen)

Consolidated

FY2025(estimated total for FY2025)

Dif. between consolidated
and non-consolidated
G&A+0.5
expensesCredit-5.4
costs Stock-related Pensions,-5.4 gains losses
etc.
Taxes
-2.5
-2.2
-7.0

75.0

60.0

Consolidated net business income

83.7

120.0

36.2

Profit attributable to owners of parent

60.0

75.0

15.0

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FY2022(discl.)FY2025(plan)

10
10

Net Interest Income ①
Planned increase in net interest income by expanding our ever-strong interest on loans despite declining BOJ special interest rates
Yen net interest income gains/losses(Billion yen)
Net interest income
Yen-denominatedInterest on loans
Loan and bills discounted
Corporate loans
Residential loans
Unsecured loans
Deposits (incl. NCDs) (-)
Interest and dividends on securities

Bonds
Stock dividends
Investment trusts
Gains on cancellations
Other (market operations, etc.)
BOJ account
BOJ special interest
Foreign currency-denominatedFY2022(discl.)FY2025(plan)

Change

135.9
130.3
99.6
100.0
52.9
36.6
9.5
0.3
26.4
2.8
10.0
12.5
5.4
4.2
1.3
2.0
5.5

147.6
140.2
112.6
112.9
63.0
37.6
11.2
0.2
25.7
3.8
9.9
11.0
3.5
1.8
0.9
0.0
7.4

11.7
9.8
12.9
12.9
10.1
1.0
1.7
0.0
-0.6
1.0
-0.1
-1.4
-1.8
-2.3
-0.4
-2.0
1.8

Yen-denominated loans
net interest income factors

Unsecured+1.7
Corporate Residential
+1.0
+10.1

ChangeVolumefactors

Yield
factors

Corporate

+10.1

+7.4

+2.7

Residential

+1.0

+3.5

-2.4

Unsecured

+1.7

+1.9

-0.2

Total

+12.9

+12.9

-0.0

140.2
BOJ, etc.
-2.9

130.3

+9.8
3/20233/2023(discl.)Corporate

Residential

Unsecured

BOJ, etc.

(discl.)3/20263/2026(plan)(plan)

Interest rate forecast (FY2025 average)

Yen

Foreign currency

O/N-0.05%FF rate

3.12％

2-year government bond yield

0.05%

U.S. 2-year treasury yield

3.05％

Net interest income (excl. gains on
the cancellation of trusts)

130.5

144.0

13.5

10-year government bond yield

0.50%

U.S. 5-year treasury yield

3.22％

Gains on the cancellation of trusts

5.4

3.5

- 1.8

TIBOR 3M

0.07%

U.S. 10-year treasury yield

3.31%

Flat yen interest rates

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1111

Net Interest Income ②
Estimating an upward trend of corporate loan yields and an overall tapering-off of yen-denominated loan yields
Yen-denominated loan balance/yieldYen-denominated loan average balance/yield*Excluding treasury loans

Corporate
-4bp

0.81%
-3bp

1.01%

0.74%
-2bp

-2bp

0.96%
0.93%

Taper-off+0bp(Billion
yen)

0.78%
8,100.0

7,156.0

5,972.1

0.91%
0.88%

0.88%

Annualrate*+4.1％
FY2019

+4.2％
+6.2％

FY2022(estimate)

FY2025(plan)

Unsecured

Residential
1.05%
0.89%

(Billionyen)(Billion yen)

3,632.3

10,893.1
10,438.2
9,936.9

FY2019FY2020

FY2021

FY2022(estimate)

4,310.0
3,912.1

11,306.0

FY2018

5.59%
0.95%

12,706.8

9,545.9

Increase+4bp

FY2025(plan)

Annual
rate*
+3.4％

+2.5％

FY2019FY2022(estimate)+3.2％

FY2025(plan)

5.04%

Slow pace of
decline-6bp(Billion
yen)

236.0

Taper-off
basis
-8bp

195.0
170.4
Annualrate*+10.4％FY2019

+6.5％
+4.5％

FY2022(estimate)＊Growth rate (annual rate) is the annualized average growth rate over three years

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4.95%

FY2025(plan)

12
12

Net fees and Commissions
40.0 billion yen planned in net fees and commissions through expanded corporate solutions, recovery of investment trusts and personal annuities
Net fees and commissions
FY2022(Billion yen) (discl.)
Net fees and commissions<Main breakdown>
Investment trusts and personal annuities
Investment trusts
Annuities and whole life insurance
Level-premium life insurance
Financial instrument intermediary
Corporate soutions
FinanceNon-finance
Trust business and inheritance-related services

Cashless operations*1
Bank franchise operations
Visa debit card2

JCB operations-related* (not including increases)

New businessNew and updated fees
Exchange-related
Loan-related fees

FY2025(plan) Change

27.9
6.7
3.2
1.6
1.1
0.4
14.4
11.2
3.1
1.6
1.8
0.2
0.7
0.0
0.0
0.0
12.4
-12.1

40.0
10.5
5.1
1.8
2.1
0.8
17.5
13.4
4.0
2.2
5.8
1.1
1.3
1.9
0.5
1.4
12.9
-14.1

3.7
1.9
0.1
0.9
0.3
3.0
2.1
0.8
0.5
4.0
0.8
0.6
1.9
0.5
1.4
0.4
-2.0

*1 Corporate solutions now includes business succession (updated retroactively)*2 Operations transferred from JCB Card to the Bank through an absorption-type split agreement

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Corporate
solutions
Sale of financial +3.0
products
+3.7

12.0

Trusts/inheritance
+0.5

27.9

Cashless+4.0

New services, other
+2.9
40.0

Group trusts/
guarantor fees, etc.
-2.0
Increase in group trusts/guarantor fees
due to increased residential loans+12.0
FY2022
FY2022(discl.)Sale of financial

Corporate solutions

Trusts/products

Cashless

inheritanceGroup trusts/

10.3
0.5
2.2
3.2

4.2
FY2016

10.5
0.8
7.7
0.6

1.5

6.7
0.4
1.1
1.6

2.9

3.2

FY2019FY2022(discl.)

2.6

2.1
1.8

5.1

2026/3(plan)

Financial
instrument
intermediary
+0.3

17.5
(Billionyen)

Level-premium life
insurance+0.9
Annuities andwhole life insurance+0.1

FY2025
FY2025(plan)

Corporate solutions

Investment trusts and personal annuities(Billionyen)

New services, otherguarantor fees, etc.

14.4

4.0

Non-finance
+0.６

13.4

Finance
＋2.3

3.1
10.0
6.4
1.2

1.9
11.2
8.1

Investment trusts
+1.9

5.2
FY2016FY2019FY2022(discl.)FY2025(plan)

13
13

G&A / Credit-related Expenses
Credit-related expenses expected to remain at prior levels,
excluding “precautionary provisions”

Further decrease OHR through top-line expansion despite
increased expenses due to strategic investments
FY2022

FY2025(Billion yen) (discl.)(plan)

G&A (-)
Personnel (-)

Change

82.5

88.0

5.5

39.3

40.0

0.7

37.1

41.3

4.2

Taxes (-)

6.1

6.7

0.6

[Ref.] Cons. G&A

89.3

94.4

5.1

OHR (cons.)*

48.4%

Non-personnel (-)

45%

Annualwage Policy
increase +1.3
+2.4

39.3

40.0

Change to Other
personnel -0.2
structure-2.8

FY2022(discl.)88.0

Policy+5.2

Net credit
cost ratio
Excl.
precautionary
provisions

Cost reduction
-2.4

0.2

2.8

Disposal of non-performing loans (-)

5.1

7.8

2.7

8.3

9.6

1.3

New downgrades (-)

8.0

9.5

1.5

Existing non-performing loans (-)

0.8

0.7

-0.1

Collections, etc.

0.4

1.2

0.8

3.2

1.8

-1.4

2bp

5bp

－

8

6

Cost reduction

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9

FY2025
FY2025(plan)

5

3.2(Billion yen)

10.9

9.5
8.7

2

3.7

8.0
6.5

8.0

7.1

2.2

ChangeNew non-performing loans

2

6
10.4

(plan)(bp)6

Creditrelated
expenses・Digital infrastructure
・Expand human investment

Policy-2.6

Change / ratio(Billion yen) 9.5

New banknote, etc.

Net provisions to general allowance forloan losses (-)

Net credit cost ratio (-)

Personnel+0.7

Personnel

5.5

Recoveries of written-off claims

Precautionary
provisions

FY2022
FY2022(discl.)8.0

FY2025(plan)

Major factors behind increased expenses

82.5

2.5

Write-of f s / Net prov isions to specif ic allowance, etc. (-)-

New banknote, etc.
+2.0

FY2025Credit-related expenses (-)* OHR: Expenses / (net business income – bond-related gains/losses, etc. +net provisions to general allowance for loan losses + expenses）

・Bear fund/bonus increase
・Hiring, salary structure review

FY2022(Billion yen) (discl.)

2.5

FY2019 FY2020 FY2021 FY2022(discl.)2.2
FY2025(plan)

1.8

2.0

FY2019 FY2020 FY2021 FY2022(discl.)2026/3(plan)

14
14

Capital Strategy / Investment Plan
Maintain CET1 ratio* at 10.5%~11.5% and aim to increase dividend ratio
Target CET1 ratio*

Capital management viewpoint
Net
incomeInorganic
investment

Around
11.5%

Increase RORA

11.5%

Asset
accumulation

Targetrange

Shareholder
returnAppropriate
level

10.5%
Capitalaccumulation

FY2022 estimate(Unit: billion yen)

Shareholder return policy

Consolidated
shareholder
return ratio

36.6

54.0

50.6

48.6

47.9

41.7

38.8

19.1

20.8

22.9

22.0

24.5

28.1

29.9

(yen)
2H
Dividend

7

6
1H
Dividend FY2014

32.6

13

34.0

15

7.5

7.5

8

10

11

7
7

7.5

7.5

8

8

9

11

13

FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

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Flexibly perform share buybacks within the required capital
range

Dividend ratio: over 35%
Long-term goal: 40%

29.9

Consolidated
Dividend ratio

・Increase net fees and commissions
・Invest in high RORA assets, restrict low RORA assets

Strategic investments / IT investment promotion

Term-end(%)

Increase ROE

Additional
shareholder return

Growthinvestments

51.2

Maintain proper
capital adequacy

Previous
38.9
Total (non-consl.)(50.0)
Strategic
7.8
investments(15.0)
7.1
IT(11.5)
Building/office0.7
equipment(3.5)
Maintenance/legal
10.4
compliance(15.0)
20.7
New Head Office(20.0)() indicates planned value

Current
30.1(40.3)
7.5(13.0)
6.2(10.0)
1.2
(3.0)
8.5
(12.0)
14.2(15.3)

New
34.0(34.0)
16.0(16.0)
11.4(11.4)
4.6
(4.6)
18.0
(18.0)
ーー＊Basel III full implementation finalization basis (excluding valuation differences on securities)

Change+3.9(-6.3)＋8.5(+3.0)＋5.2(+1.4)＋3.4(+1.6)＋9.5(＋6.0)- 14.2(-15.3)15
15

Basic Policy Overview

16
16

Operational Guidelines (evolution of the customer-focused business model)
Issues in our existing business model and changing customer needs① Product-focused proposals② Proposals to address emerging
needs③ Commodification of financial
services④ Changing values and behavioral
patterns

Evolution of our customer-focused business model = “Changing our perspective” on delivering products and services
Expand cross-use through optimal
personalized proposals

Expandcross-use

IncreaseEngagement

Well-timed product proposals suited to customers

Lifestage-based proposals
Cashless

Asset
Residential
management
loans

Proposals that anticipate customer
needs and stand upstream ofcommercial distribution
One-to-One Marketing
Elicit needs
Household info

Advance credit

Transaction
data
Behavioral
data

Educationloans

Business
IPO support
restructuring

Advertising

Digital marketing

Aim for the expertise of a consulting firm
[Retail] Comprehensive financial planning[Corporate] Assisting managers

Hybrid channel thatcombines the convenienceof digital and added-valueof in-person

DigitalAim for the convenience of a digital bank
Increase connectivity

Auto-loans

Other new businesses

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

In-person

Remote…

Advisory

Residential loans

Establish optimal contact points
for customer convenience

Automobile concierge

Energy-generation
Emerging needs

Starting
capitalRegional trading companies

Housing concierge

Recommendation

Business stage-based proposals

Expand non-financial services
based on customer needs

Become a well-liked and easy-torecommend bank17
17

Basic Policy Overview ①: Retail Customer Journey
Provide value that closely matches the lifestyle of each customer through “in-person, remote, and digital” channels
CustomerstatusValue for theBank

Become a customer

Impression of the
Bank changes

Consult on a wide
range of issues

Personalized and efficient proposal activity

Digital-use, contact data storage

Consulting proposals

Product groups

Automobile concierge

Insurance proposal advisors

Investment trusts

Private Banking

Insurance

Inheritance professionals

Private trusts

Residential loan experts

Residential loans

Chibagin Securities

Unsecured loans

Branches/Offices

Web meetings

Relationship Manager (RM)
Convenient and easy-touse financial services

Daily
convenience
Payments

CashlessMoneymanagement

Understanding myfamily and I

Revenue

Housing concierge

Remote financial consultations

Connect anytime, anywhere

CustomerExperience

Keep choosing
Chiba Bank

Desire to recommend/
become a fan

Easy to consult
anytime, anywhere

Policy Ⅰ
Policy Ⅱ
Policy Ⅲ

Offer value

External cooperation (tax, real estate, etc.)

Starting to like
Chiba Bank

I want to use Chiba
Bank even more

Personalization
Life events (needs)

Receiving helpful
information
Housing
information

MoneyworriesHousepurchase

New carEconomic security

Fulfilling life

Prosperous old age

Rainy-day
preparation

Children End-of-life Marriage
Financial literacy

Tax payments
Money transfers

App

Trusts/loans

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Useful in daily life
CF/EC site
(regional trading
companies)

Expand cross-use throughpersonalized proposals

18
18

Basic Policy Overview ②: Corporate Customer Journey
Provide convenient services and useful information through the corporate portal,
contribute to resolving management issues of business operators as a partner to management teams

CustomerstatusValue for theBank

Become a customer

Impression of
Bank changes

Digital-use, contact data storage

Consult on a wide
range of issues

Helpful non-financial services forcompany management

Convenient andefficientfinancial transactions

Non—finance Area

Project financeBusiness-succession consulting

Non-recourse loans

ICT consulting

Sustainable financeBusiness restructuring support

LBO

Decarbonization support

Equity loan / capital investment

Business matching
Real estate funds

Issues based on business stage

Cashless

Capitalmanagement

Online investment

Corporate
portalEasy to consult
anytime, anywhere

Planning

HR

Generalaffairs

Sales

Accounting

IT

Alliances
Policy Ⅰ
Policy Ⅱ
Policy Ⅲ

AdvertisingGroup
companies

Chiba Bank is reliable forbusiness management

When in doubt, firstcall Chiba BankWeb meeting

Personalize
Provide business information

Sales
management

Revenue

Finance Area

Branches/
OfficesConvenient and easy-to-use
financial services

Keep choosing
Chiba Bank

Resolve issues by collaborating with experts at the Head OfficeConnect with every businessowner including non-borrowers

Customerexperience

Desire to recommend/
become a fan

Decarbonization

SDGs

DX

Securing alabor force

Offer value

IPO

Business matching
Subsidy diagnostic services

Documentexchange

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Helpful services for nonborrowers

Contribute to resolving management issues
as a partner to management teams

19
19Basic Policy I: Enhance One-to-One Marketing
Utilize data to make proposals that that address each customers’ issues in order to build a fanbase
End-of-life

Proposals that stand upstream ofcommercial distribution
Collect data from awide range of sources

Retirement

・Improve customer engagement
・Collect even more data

・Retirement package
Raising children

・School loan
House/car purchase

SNS

App

Corp. Portal

・Residential loan

EmployeeATM

Client liaison
Student
・Open account・Debit card

・Payroll deposits
・Credit card
・Card loan
・Utility payment

Marriage/children

・Auto-loan

・Life insurance

・Non-life
insurance

・Assetmanagement

・Testamentary
trusts・In-vivo gifts

・Asset management
review・Insurance review

Further enhancement of proposal lineup
through non-financial services
Deliver life plan proposals to each customer
through their optimal channels

Anticipate customer needs andlife plans through data analysis

DigitalRemoteHouse

Car

BridalTravelIn-person
Chibagn Market

Elicit customer needs

Green energy

NursingEnd-of-life

Desirable products and services
Examine household budget and life plan
Financial literacy / asset management
information

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

20
20

Basic Policy II: Retail Business ①
Optimal asset management proposals that combine in-person and digital channels

DigitalHighly-convenient digital contact points (mainly asset accumulation)

Enhance residential loan business

Offer each financial service through the app/online

Initiative policies

App investment trusts

Enhance contact points
Financial literacy/
Financial column

Elicit needs/proposals

Application

Offer highlyconvenienttransaction
channels

Life plan
simulation

Review

Asset management portal site

DigitalBank

Optimize proposals at each stage: Review ➡ Loan execution ➡ Repayment

Diagnose management styles
Management simulations

On Ad
Neutral advice

In-person ① Highly professional in-person proposals (mainly affluent customers)

Comprehensive
financialconsulting

InheritanceIn vivo gifts

Review ofasset portfolio

Diversification ofmanagement tools② Promote use of NISA by expanding base
New proposal tool

Paperless contracts

Enhance portfolio proposals

Create time for proposals

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Borrow / repay

Specialize in understanding needs,
propose solutions to issues in tandem with teams of experts

Credit check

Data utilization

Concrete measures
Chibagn Market

Approach before
considering borrowing

Deliver proposals from upstream ofcommercial distribution throughconsulting services

Increase number ofpre-screened applications

Improve relationship realtors

Increase rate of finalscreening applications(Share development info, support special projects)

Enhance internet housing loan center(Volume strategy, expand target area)

Review screening criteria
Flexibly set conditions basedon needs(Upper income limit, ease requirements for those raisingchildren)

Establish new guarantee fee categories

Financial products
Expand/launch transactions
beyond residential loans

Unsecuredloans

Cross-use of insurance, investments, cards, etc.
Respond to demand for remodel/relocation

Non-financial products
Sale of housing-related products

Increase app
loan balances

Targeted promotion

21
21Basic Policy II: Retail Business ②
Further expansion of trust/inheritance business opportunities in view of an aging Prefecture
Prefectural elderly population trends (Created by Chibagin Research Institute)(thousand people)

Estimate

Results

1,734

1,809

1,771

1,989

1,878

Further enhance cashless base as a means toward building a regional ecosystem

Card franchises/balance

1,605

735.3

1,338

2010

304.0

2015

2020

2025

2030

2035

2040

2045

Develop non-financial services

Lateraldevelopment

Renovations

Two-family homes

Nursing homes

Travel products

Funeral/headstones

Gain the trust of our customers andunderstand other financial assets
Dig deep

Insurance
Sale of realestateUse of Chibagin Market

Hoken No
Madoguchi

FY2022

FY2025(estimate)(plan)

187.3

548

832

FY2019FY2022

255.4

Coupons

Franchises(thousands)
Receive/use Bank points

YearlybalanceCooperate on expense
reimbursement system(billion yen)

1,188 Cardholders(thousands)

Elderly population(65 and over)Number of notarized
wills

Japan

36.72 million

106,000

Chiba

1.77 million (4.77%)(estimate) 5,057

Calculated by multiplying the national figure
by the population ratio of Chiba Prefecture(4.77%).

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

(estimate)

FY2025(plan)

Improve system by reorganizing group operations

Inheritance trust trends (FY2021 data)

Strengthen
collaboration

On Ad

69

48

Card issuingmachineIncreased security

Expand business matching

Investment
products

155.4

Yearlybalance(billion yen)

Cardholders/balance

Develop new products/
improve existing products

Expand transactions
utilizing held assets

441.5

33
FY2019

Expand trust/inheritance operations

Future expansion

Whole-Group targets
2,029

793 carried out by the Bank in FY2021≒ 15.7% of wills in the prefecture

Current

After 10/2023

Chiba Bank

Chiba Bank

Chibagin
JCB Card
Chibagin
DC CardRetain card guarantee operations,transfer JCB Card-related operations

Name change

Chibagin
JCB Card
Chibagin
Card

22
22

Basic Policy: Corporate Business
Provide convenient services and useful information through the corporate portal, contribute to solving corporate management issues as a partner to management
Form strong customer connections through digital and in-person channels

Highly-convenient digital contact points
DigitalDigital channel that serves as a hub for eachservice that connects business operators and banks

Indispensable basic infrastructure
for business activity
Basic financial and communication functions
Chibagin
Business Portal

Business information■ Strengthen customer connections

Digital services
Borrowers

Provide solutions to a wide range of management issues
B/S management support

P/L management support

AssetsHigher sales

Asset liquidation
with R/E funds

・Reduction of fixed assets
・Expand/rebuild production bases
・Use of idle assets
Liabilities/net worth

・Rationalize payment operations
・Stable capital funding
・Diversification of funding methods
・Stock succession

・Expand sales routes (via Chibagin Market EC site)
・Support for efficient collection of proceeds
・Support for new product development

Cost optimization
・Optimize production costs
Support sales via
advertising・Advertising, PR support
・Personnel introduction service
・Optimize expense payments＋ Non-borrowers■ Accumulate transaction data (including other banks)

Support for formulating various business plans(Capital investment, SDGs strategy, DX, HR development, etc.)

Connect to the portal anytime
In-person, specialized proposals

In-person

Provide the expertise of a consulting firm

Building an advanced proposal system
Sales divisions
・Improve inter-division collaboration
Business Coordination Division (new)Close support for essential management issues

・Strengthen Group-wide proposals
Group Strategy Division (new)・Enhance overseas network

Focus on financial business

Expand non-financial business

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Credit screening unit
・Understanding business partners’ conditions in
response to a changing environment
・Consider solutions in tandem with sales divisions

Allies・Collaboration with Alliance banks
・Expand business alliances that contribute tocustomer support

23
23

Basic Policy III: New Business ①
Grow towards the next stage for the new businesses developed in the previous Mid-term Plan
Chibagin Market

On Ad

STEP 1
Local
Production

Creation/cultivation of
new products/services

Ongoingpurchase

Contribute to asset
formation throughOn Ad

Neutrality

On Ad“Trigger regional revitalization” within Chiba
Branding

What is “financial wellness”?

Establishment of new business model that stands
upstream of commercial distribution
Uncover hidden needs
through datautilization/personalization

STEP 2
Life
EventsCompletedonlineSpecialized
adviceChibagn Market

Financial wellness refers not only to physical andmental health, but is a state of being wherein aperson can fully meet current and ongoing
financial obligations, can feel secure in theirfinancial future, and is able to make choicesthat allow them to enjoy life.

High-level solutions via real estate funds
Realtors

Overview ① ~CRE strategy~

House purchaseconsulting service

Chibagin Leasing

Property purchase(Liquidation/lease-back)Chibagn Market

Living(Major areas)
Health/nursing

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Developed/effectively used by business partners

Education

Supportlarge-scale
investment

Stabilize
real estate
ownership

Overview ② ~Development support~
Provide support

STEP ３Compressinterestbearing debt

Sale priceReal estate held by borrowers

Support consumption activity of new lifestyles and“Connect to life”

Raise growth
capitalSecure/supplement funding capacity

Food retailers

2424Basic Policy III: New Business ②
Continue to enter new business areas in addition to advertising and energy production and expand non-financial services/diversify revenue
Advertising

BaaS

Advertising agencies
Business operators

Advertising consulting support for business issues
related to customer attraction and name recognition
IssuesConsulting

Cashless Platform
Provide financial
and otherfunctionsApp

Advertising medium
Use bank and other company channels to increase
opportunities to broadcast highly-reliable ads

Provide payment services toreduce cash-handling
operations and streamline
administrative operations

Advertising

Loans

Cashless

Provide auto- and card loans

Business
operator
customers

Point base

Broadcast ads

Anti-money laundering

Energy production
Power generation
management

Metaverse
Accumulate know-how throughmanagement of events for job candidates
and local governments

Operation/management of power plants

Sale of energy
Sell and generate energy in-house

Other

Begin considering commercialization withbusiness partners
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Consulting service
Environmental value referral

ChibaginGroup
Energyretailers
Regionalcustomers

Sophisticated and efficient
ALM operations
Sharing/development of know-how
based on regulatory standards

Communalization
Consider future businessconsolidation (outsourcing) using
joint systems

25
25Value Creation Bases26
26

Base I: DX Strategy
Evolution of our customer-focused business model

Creating the optimal
customer experience
Evolution of the customer-focusedbusiness model

Retail Customer Needs

Regional Ecosystem Strategy

Personalization Strategy

Evolution of Financial Operations

PaperlessSeal-less

Develop digital
infrastructure toconnect to customers

Creation of Non-financial Operations

Platform

App
Corporate portal

Develop infrastructure formore efficient banking
operations

Corporate Customer Needs

Regional
suppliers
BaaS
New technology

Support operations throughplatforms and new technology

ChibagnMarketDigital support for needs

AD
Advertising

Digital support for sales

Digital marketing to improve strategic outcomes
Accelerate strategy through human resources development
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

27
27Base II: GX
Contribute to the sustainable development of the entire Chiba prefecture through regional decarbonization
Chibagin Group Carbon Neutrality
Collaboration with local
governments

Become carbon neutral by March, 2031
*Scope 1 & 2 emissions of the Bank

Expand use ofrenewable energy

Establishment of Himawari
Green Energy Co., Ltd.
ZEB/energy-saving
branches

LED
Installation of
LED lights

Introduction of
hybrid vehicles

Installation of solar
power generators

Develop model for local
generation and consumption ofrenewable energy◼ Comprehensive SDGs
partnership agreements

Contribute to the sustainable
development of Chiba prefecture
through ongoing decarbonization
initiatives throughout the region◼ Increase number ofcompanies registered as
Chiba SDGs Partners◼ Support for areas
advancing decarbonization◼ Promotion of Chiba SDGs
Utilization of network

March, 2031
Chibagin Group
becomes carbon neutral

Support for customers’ decarbonization

Sustainable financing targets

Support for SDGs Management◼ Incorporate ESG issues into business evaluations◼ Business succession consulting

2050
Sustainable development of
Chiba prefecture(amount achieved since April, 2019)
Sustainable finance

Environmental finance

Entire prefecture becomescarbon neutral

Carbon-neutrality consulting
Corporate
Customers

RetailCustomers

Target￥2 tri.

◼ Greenhouse gas emission measurement support◼ Solar power generator installation support◼ Sustainable housing support discount◼ Discount SDGs loans

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

￥0.8 tri.

Target￥1.2 tri.
￥0.3 tri.

9/2022

3/20263/20319/2022

Target￥0.6 tri.

3/2026

Target￥1 tri.

3/203128
28

Base III: Alliances
Evolution of our Alliance Strategy
TSUBASA Alliance

Chiba-Musashino Alliance
A new model for regionalbank alliances

Alliance that spans
across Japan◼ Large-scale collaboration between the
top regional banks in each area
◼ 96 trillion yen in total assets (3/2022)◼ 27 million retail customers/
2.2 million corporate customers,
rivaling the megabanks

A new form of regional banking◼ Accelerate communalization of each area
◼ Expand presence in the Tokyo Metropolitan area

Total

A platform for each measure
Platform for each alliance measure to further
deepen collaboration

Strengthen collaboration with otherbanks/industries￥14.3 bil.

￥15.0 bil.

Phase 1 results(Launch~3/2021)

Phase 2 plan
(4/2021~3/2026)

Chiba-Yokohama Partnership

Expand alliance and strengthen
collaboration with other banks/industries

Collaboration between top
regional banks with Tokyo as
the base of operations

Top-line growth

×××

Reduced costs

Larger presence

Development of know-how between
top regional banks◼ Expand Tokyo market-share through a partnership that
capitalizes on economies of scale◼ Offer high value-added financial services￥1.5 bil. ￥8.4 bil.
2020/3Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Total

2021/35-yearplan total￥21.8 bil.￥20.0 bil.
￥16.6 bil.
(as of 3/2024)
2022/32022/92026/329
29

Base III: Collaboration with Other Industries
Improve ability to provide value as an organization through collaborations with a wide-range of other industries
Sony Bank

Strive to provide new value by collaborating with a wide-rangeof corporations, organizations, and local governments

Deep, develop
expansion
Mutual provision of digital technology, products, and services
Utilize new digital technologies
Aim to improve convenience of digital channels
by officially implementing “Mado”, a digital presentation system

Mutual provision of products and services that make up each bank’s strengths
Foreign currency
services

Asset management, trusts,
inheritanceCashless operations

Collaborations withbusiness operators
Change Inc.
DX promotion, DX support for
local governments

Weathernews Inc.
Collaboration on climate change
information disclosures

Zeroboard Inc.
Support for customer
decarbonization initiatives

WealthNavi Inc.
Introduction of robot asset
management advisor

Seek new partners from the perspective of capitaluse collaboration
Collaborations with local governments
and public organizations

Joint-research on the use of technology
Joint-research regarding use of the blockchain
Security-tokenization and cross-selling of Bank bonds

National Institutes for Quantum
Science and Technology
Research commercialization support

Local prefectural governments
Regional revitalization
collaborations

Joint-research on the DX of housing loans
Improve AI credit check models

Chiba City, Chiba Prefecture / Ministry of Land,
Infrastructure, Transport and Tourism, Kanto Regional
Development Bureau

Joint-research on the development of a sustainable society

Create foot traffic using road space

Mutual introduction of crowd-funding for socially significant initiatives
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

30
30Base IV: Creation of HR Policy / Overview of HR Strategy
Positioning “human capital” as the Bank’s most important management resourceand developing an HR policy designed to train the personnel necessary to achieve our Purpose
Human Resources Development Policy(working towards our corporate Purpose)“Become someone who keeps fighting for the customer”. Think things through, utilize your own strengths, and gain more supporters

New Mid-term Plan Human Resources Strategy
Number of trainees

Creation of an “Organization with highpersonnel engagement”

Development of a “Chiba Bank Group
where people grow”
Important
Strategies① Career development➁ Job satisfaction

Sustainable growth forthe local community③ Diverse organizationGoals④ Unified Groupmanagement⑤ Human Resources
portfolio

Employees

Provide societal value
Diverse-range of experts

148

Current Mid-term
Plan target

＋132

280

Improve personal growth,
job satisfaction, and treatmentof employees

Customers

Bring customers’
hopes to life

Previous Mid-term
Plan result

Bring employees’
hopes to life

Corporate sales

50

Retail sales

50

DX personnel

60

Head Office personnel

90

Corporate solutions, Credit Unit,
Market, Planning, etc.

Management team

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

30
31
31

Group GovernanceRefine traditional business at existing group companies while expanding into new business areas
Expand Group Business

Expand into
new business areas

Refinetraditional business

Consider capital alliances withother industries

Finance
Chibagin Leasing

Buy-out funds

Chibagin Guarantee

Chiba Servicer

Business Promotion Group

Consolidate risk management,
management resource allocation,and policy measures, etc.

Consolidate
planning/promotion of eachGroup company

Chibagin JCB Card
Chibagin DC Card

Branch/facility management, etc.

Risk management

Special Subsidiary
T&I Innovation Center

Chibagin Heartful

Policy measures, etc.

New Business Areas
Inside the Group

Outside the Group

Chibagin Market

On Ad

Himawari Green Energy

New anti-money laundering
company (under consideration)

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Management resource allocation

Chibagin Research

Sobu

Chibagin Leasing

Chibagin Asset Management

IT
Chibagin Computer Service

Management Group

Chibagin Securities

Chibagin Securities

Group Strategy
Division…
…
…

(All 15 Group companies)

Asset Management

Promote unified Group management
equivalent to a holding company
structure

Oversee all aspects of Group
companies, including sales andmanagement

Chibagin Research InstituteChibagin Career Service

New

Retail auto-leasing

Newly-established“Group Strategy Division”

Consulting/Solutions
Chibagin Capital

New

Enhance Group Management Structure

Unified management ofGroup personnel… and further considerationof new businesses

Unified Group recruiting

Fluid transfer of personnel
32
32

マスタ タイトルの書式設定

Inquiries related to this presentation should be addressed to:

The Chiba Bank, Ltd.
Corporate Planning Division
Investor Relations
Tel: 043-301-8459
Fax: 043-242-9121
E-Mail: ir@chibabank.co.jp
This material was prepared only for the purpose of providing information and does not solicit
the purchase or sale of any specific securities.
All or part of the matters described in this material may be revised or changed without priornotice. This materials contains forward-looking statements. These statements are notrepresented as providing a guarantee of the Bank’s future performance, and actual results may
be subject to risks and uncertainties. Please note that future performance may differ due tochange in business environment, etc.