The Chiba Bank website[IR Library]

Chiba Bank IRDay(Growth Strategy)

April 8, 2024

Table of Contents
Chiba Bank Group Strengths
Chiba Bank Group Strengths
Operating Base
Deposits / Loans
Branch Network
Area Characteristics
Financial Base
Efficiency / Soundness / Stability
Capital Management / Capital Utilization
Alliances
Deepening Alliances
Collaboration with JUUDANKAI / Deepening TSUBASA Alliance

3
4
4
5
6
7
7
8
9
9
10

Advertising
On Ad / Real Estate Fund / Joint Business Plan
Human Capital

29
30
31

Action based on Business Improvement Plan
Purpose / Vision / Three Pledges
True Cause Analysis of Problems / Four Measures
List of Major Measures
Changes through Business Improvement Measures /Verification of Actual Conditions
Efforts to Grasp the Actual Situation
Governance

36
37
38
39
40
41

Growth Strategy
Improving P/B ratio
Growth Strategy
Continuing Growth toward FY2030
Interest Rate Rise Simulation
Refine Existing Businesses
Transformation through DX
Retail BusinessCorporate Business
New Businesses
Cashless
Anti-Money Laundering / Metaverse / Energy / BaaS
Chibagin Market

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12
13
14
15
16
16
19
21
26
26
27
28

1
1

Chiba Bank Group Strengths

22Chiba Bank Group Strengths
As to further strengthen our operating base, financial base and alliance strengths
Current situation
Chiba prefecture
population
6.28 million
6th nationwide

Operatingbase

Financial base

Loans

Deposits
Deposits growing faster toexceed the mid-term planof +2.2%

+4.9%

+2.8%

Loans growing faster toexceed the mid-term planof +3.8%

Efficiency

Consolidated OHR maintained at lower than 50%

Soundness

P7

P7

Growth exceeding
the increase by¥12.9 billion
in the mid-term plan

2026/3+

Domestic loans /Mid-term plan
¥11.8 trillion → ￥13.1 trillion+2.2%

Prefectural
gross production¥20 trillion
7th nationwide

P72023/32023/3Mid-term 2023/12 Mid-term 2023/12
plan
resultsplan
results

Expected effects ofinterest rate hike2026/3Growth exceeding￥1.3 trillion

In future

Interest on loans
and deposits

Deposits /Mid-term plan
¥15.4 trillion → ￥16.1 trillion
Growth exceeding￥0.7 trillion

+3.8%

P4

Stability

P15¥3.4 billion～ ¥26.0 billion

Increase in loans anddeposits due to branch
strategy
P5
Increase in personalliquid deposits due toimproved customer
experiencethrough DX
P16～

Achievement of 45% target in the mid-term plan

Improvement of topline and cost reduction
through DX

Non-performing loan ratio is 0.9%

Maintenance of the low non-performing loan ratio

Solution Review
Meeting to control
credit costs

Consolidated CET1* 11.98%(range limit +0.48%)

Maintenance of the level of consolidated CET1 ratio(If shareholder returns are achieved in line with the mid-term plan)※Basel III finalization basis(excluding unrealized gains/losses on securities)

TSUBASA Alliance

Alliances

Forecast for FY2025

Further growthby leveraging
capitalP9

Joint Research Group with JUUDANKAI

Further strengthening of various alliances

Chiba-Musashino AllianceFurther top-line growth×
Cost reduction

Chiba-Yokohama Partnership

P8

Collaboration with Sony Bank
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3
3

Operating Base (Deposits / Loans)
Establishing an overwhelming operating base in Chiba Prefecture, where growth is continuing / Increasing loans and deposits in excess of the mid-term plan
Overwhelming share in the prefecture
Credit cooperatives /Labour Bank / JA
8.4%

Chiba Bank
40.5%

(Billion yen)

Number of companies
choosing the bank as main bank

Loan share
Breakdownin Chiba Prefecture

Regional banks(excl. Chiba Bank)
14.5%

Japan Post
17.4%

City banks
10.8%

Chiba Bank
28.5%

Credit cooperatives /Labour Bank / JA
Deposit share
7.9%
breakdownin Chiba Prefecture
Shinkinbanks 5.5%
2nd-tier
regional banks
10.5%

Regional banks(excl. Chiba Bank)
6.1%

City banks
24.1%

Approximately
20,000 companies
About 40% of theenterprises in Chiba
Prefecture are choosing
the Bank as main bank
Source: Teikoku Databank"Survey of Main Banks of Companies in Chiba
Prefecture (2023)"

10,376.2
1,588.4
1,615.6

10,962.6
1,711.5
1,786.0

Further growth
Growth exceeding
the plan【As compared to
December 31, 2022】

Mid-Term Plan
+3.8%/year

Loans

Shinkin banks
7.3%

2nd-tier
regional banks
18.5%

Current growth in loans and deposits

11,425.9

11,836.7

11,747.0

1,938.2

1,907.9

1,818.0

1,957.1

2,045.9

2,009.9

12,332.3

Retail branches
outside Chiba Pref.
2,053.1+7.6％

Specialbranches*+11.9％

2,251.0

562.8

581.0

590.6

589.4

600.7

6,635.1

6,902.2

7,069.7

7,261.8

7,239.7

7,427.3

2020/32021/32022/32023/32022/32023/12

536.9〔Total〕+4.9％

Chiba Pref.
(regional
revitalization areas)+1.9％

Further growth inloans and deposits
due to expansion of
branch network share

Chiba Pref.
(growth areas)+2.5％※Tokyo Sales Department, Shinjuku
Branch, Osaka Branch

Deposit structure

Other
5%
Corporate
21%
Personal
74%¥11 trillion yen of the¥15 trillion in domestic deposits
are sticky individual deposits

Mid-term Plan
+2.2%/year

Deposits(Billion yen)

14,787.6
14,104.5
266.5
982.0
282.0
12,788.9
956.3
289.3
783.8
3,003.7
2,822.3
2,410.3

9,305.2

15,424.4
332.7
1,117.7
3,055.5

Growth exceeding
the plan【As compared to

15,532.0 December 31, 2022】
15,107.8
355.3 〔Total〕+2.8％
368.7
757.6
Overseas
842.6
operations,
3,147.5 JOM accounts
2,919.6-3.6％
Public sector-10.0％

10,918.3
10,043.7 10,535.3

10,976.9 11,271.6

2021/32022/12Retail+2.6％

Source: Financial Journal

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

2020/32022/32023/3

Corporate+7.8％

Further growth indeposits due toimproved customer
experiencethrough DX

2023/214

4
4

Operating Base (Branch Network)
Expand the market share in the prefecture and strengthen sales in the Tokyo metropolitan area through our strong branch network and digital channel
Domestic branch network(Excluding branch-in-branch, sub branch, loan centers, online branch etc.)

IbarakiPrefecture

SaitamaPrefecture

3 branches
Tokyo
Metropolitan
Government

15 branches

To strengthen sales
in the Tokyo
metropolitan area

4 branchesNew
2024/4～
Expansion of the sales area
throughout Tokyo andneighboring prefectures

Chiba
Prefecture

127

37% ofbank branches
in Chiba
Prefecture

branches

Osaka
Prefecture

35%
387
71
182

37%

50
165

134

127

2019/32023/92023/11～
Mito Branch

Chiba Bank
prefectural
share

Chiba Bank
106
branches

Major Banks*1

Other banks

Other regionalbanks in
Chiba Pref.*2(Mega banks andprefectural regionalbanks)

Chiba Bank

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

2019/3

Other banks Chiba Bank
(Mega banks andprefectural
regional banks)

Expansion of the Area Sales Officesystem(Collection of know-how andimprovement of efficiency)

2023/12～
Hamamatsu-cho Branch

Comprehensive branch share[Total]342<New branches>

As of 9/30/2023

1 branch
Share of branches
in Chiba Prefecture

Further establishmentof new bases

Maintenance of the comprehensive
branch network(Differentiation from Other Banks in
the Prefecture)

2024/6～
Shinjuku West Corporate
Banking OfficeNewNew2024/4～
Mobara Area Sales Office102

branches

2023/9

Achieving both top-line improvement and low OHR
through a full and efficient network

Expansion of the Bank share of
the comprehensive branchOver the past 5 years, the number of comprehensive
branches of other banks has declined*1. Mitsubishi UFJ, Sumitomo Mitsui, Mizuho, Resona*2. Keiyo and Chiba Kogyo

55Operating Base (Area Characteristics)
Implementing strategies based on the RORA/OHR characteristics of each area

High RORA

Top-line RORA as an area is high, while OHR is highand contribution to ROE is small.

Regional revitalization area

Maintenance of high RORA /control of OHR

Improving the efficiency of the branch network
through the Area Sales Office system

Regional
revitalization
areas

Reinforcement of deal response capability
through consolidation of sales force
Growth areas in the prefecture
Growth areasin the prefecture

Improvement of RORA /control of OHR

Maintenance of well-developed comprehensive branch network(improved efficiency through DX)
Expansion of market share within the prefecture andsophistication of growth support for enterprises within the prefecture

Outside theprefecture

Areas outside the prefecture

Top-line RORA as an area is moderate, but the OHR is low
and the contribution to ROE is large.

Low OHR※ Circle size: Asset size

Improvement of RORA /Maintenance of low OHR

New branch openings (lightweight bases) / Additional personnel
Asset accumulation utilizing high cost-efficiency
Projects accumulation of highly advanced finance and non-finance

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66

Financial Base (Efficiency / Soundness / stability)
Building strong financial base through efficient business management and high soundness at the top level of Japanese banks, and stable capital management
Consolidated capital adequacy ratio /risk-weighted asset total

Low OHR/ Low non-performing loan ratio

Non-performing loan ratio
compared to other banks

OHR compared to other banks

12.11%

12.12%[as of 2023/3]

12.28%

Lower value indicates more efficient management

2.11%

68.1%

【As compared toMarch 31, 2023】

12.79%

11.51%

11.94%

11.63%

11.69%

Capital adequacy ratio+0.05%

11.54%

11.65%

CET1 ratio+0.11%

9,238.1

Total risk-weighted
assets +6.2％(Billion yen)

47.0%

Chiba

Chiba

0.93%

49.4%

8,098.7

7,705.5

0.84%

956.6

1,039.1
Mega 3 line average

3 megabanks
average*

Averag e o f regio nal and second-tier region al banksReg. banks/2 nd -tieraverage *※Source: Simple average calculated from Nikkin Report[Result differs from Bank calculations,quoted here for comparison only]

Chiba

Chiba

Mega 3 line average

3 megabanks
average*

Averag e o f regio nal and second-tier region al banksReg. banks/2 nd -tieraverage *※Source: Nikkin Report(simple average, non-consolidated basis)■ Achieve high cost-efficient and stable performance due to low OHR and
low Non-performing loan ratio

Controlling capital cost

8,455.9

8,698.6

1,112.9

1,159.6

1,342.8
Floor adjustments

6,666.3

7,142.0

7,342.9

7,538.9

7,895.3

3/20203/2021

3/2022

3/2023

12/2023

Risk-weighted assets
before floor adjustments（％）

2023/32023/12

Finalization
First year*

Finalization
completed*

Capital adequacy ratio

11.63

11.69

15.99

13.66

CET1 ratio

11.54

11.65

15.93

13.61

10.57

10.28

14.03

11.98

Excluding unrealized
gains/losses on securities*Rough calculation of 12/2023 results on a Basel III finalization basis.

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77

Financial Base (Capital Management / Capital Utilization)
Maintaining the policy of target range of 10.5% to 11.5% for CET1 ratio*
Perspective of capital management

CET1 ratio* target(%)

InorganicNet
income investment
Asset
accumulation DX
investment
Shareholders
returnBasel III
finalization basis
11.98%

Additional
shareholder return,
etc.

11.5%
TargetRange

Appropriate
level

10.5%
Capitalaccumulation

51.2

47.9

Consolidated
Dividend ratio

Estimation based on balance
sheet as of 2023/12
Net income

Asset accumulation

DX investment (intangible

In-organic investment

fixed assets)

Shareholder Returns

Aiming level
Term end

Concept of capital utilization

29.9

22.9

22.0

Forecast to be the same level as
2023/12③ Inorganic investment■ Strengthening shareholder returns

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29.9

13

15

7.5

8

10

11

7.5

7.5

8

8

9

11

13

'17/3

'18/3

'19/3

'20/3

'21/3

'22/3

'23/3

+1

+2

+2

+4

+4

5-year ROI
141%(expected)

Recovery in 3.4 years on averagedue to investment effect

37.8

17

15
24/3

(estimate)+4

Major measures
・Addition of app and portal functions
・Cashless・Development of digital infrastructure
・New business

Investment effectConsider further strategic system investment
in consideration of ROI■ Increase investments/assets that contribute to improving ROE over the
medium to long term
① Further accumulation of risk assets (loans, securities, etc.)② Increase intangible fixed assets through further strategic system investments

28.1

33.9

7.5

Strategic system investment and expenses① Accumulation of profits,➁ Accumulation of risk-weighted assets③ Payment of dividends / Share buy-backUtilize capital to target range

24.5

32.6

(Yen)

1H
Dividend

54.1*CET1 ratio on a Basel III finalization basis excluding
unrealized gains/losses on securities[Premises] In the mid-term plan and the next plan

CET1 ratio of 2029/3

50.3

48.6
41.7

+1
Beginning of period

54.0

Consolidated
shareholder
return ratio

2H
Dividend

Growth investment

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

Shareholder return policy

Recovery image of investments and expenses
associated with measures implemented in thecurrent mid-term Plan

Investment expenses
Approximately 20.0 billion yen incurrent medium-term plan
FY2023

FY2024FY2025

FY2028FY2029

Aim to further improve ROE by utilizing
capital through the accumulation of
intangible fixed assets*※Items to be deducted from capital in calculating
CET1 ratio88Alliances (Deepening Alliances)
Increase the Alliance's overall contribution to the Bank's P/L

TSUBASA Alliance

Chiba-Musashino Alliance
A new model forregional bank alliances

Alliance that spans
across Japan◼ Large-scale collaboration between the
top regional banks in each area
◼ ¥94 trillion in total assets (2023/3)

A platform for each measure

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

Total

Platform for each alliance measure tofurther deepen collaboration

Strengthen collaboration withother banks/industries
Expand alliance and strengthen
collaboration with other banks/industries

Total￥14.3 bil.

￥15.0 bil.

Phase 1 results(Launch~3/2021)

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

Chiba-Yokohama Partnership

New

Collaboration between top
regional banks with Tokyo
Metropolitan as the base ofoperations

TSUBASA / JUUDANKAI Joint
Research Group

Development of know-how
between top regional banks

JUUDANKAI
Cooperation through system sharing, etc.

◼ Expand Tokyo market-share through apartnership that capitalizes on economies of scale

Collaboration in the digital field
Mutual provision of digital technology, products, andservices
Joint-research on the use of technology◼ Offer high value-added financial services
5-yearplan total￥26.8 bil.￥20.0 bil.
￥16.6 bil.
(as of 3/2024)￥1.5 bil. ￥8.4 bil.
2020/3Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

2021/32022/32023/32026/399

Alliances (Collaboration with JUUDANKAI / Deepening TSUBASA Alliance)
As we further deepen our alliance strategy
New

Deepening the TSUBASA Alliance

TSUBASA / JUUDANKAI Joint Research Group
Both groups, which have affinity for systems-related fields,
will share knowledge and expertise

Realization of efficient system operation
and business processes

SystemTask Force

Enhancing customer services andcontributing to sustainable growth in eachregional economy

Operational Efficiency
Task Force

Joint research

Joint research⚫Next-generation systems andsubsystems⚫Digital field⚫Measures for anti-money laundering⚫ Labor saving measures inbranch operations⚫ Operational efficiency

Cyber Security
Task Force

Efforts to date
Introduced in accordance with the circumstances of each bankusing the method " only banks that wish to participate ".

Other joint and commissioned projects

Sharing of system and app◼ Shared administration (Chiba bank, Daishi
Hokuetsu Bank , Chugoku Bank)◼ Core systems: 5 banks introduced⇒ Enabling outsourcing to other banks◼ Individual app: 7 banks introduced,
passbook app:6 banks introduced◼ Subsystem:
API common platform (10 banks), CRM system (5 banks),
General-purpose paperless system (3 banks),
Rating system (3 banks), TSUBSA Smile (3 banks), etc.

◼ Inheritance-related business: Procedures are
entrusted from 4 banks

Joint research⚫ Cybersecurity measures

Sharing of know-how⚫ Cyber risk management

New

Renewal of the TSUBASA FinTech
common platform(Full transition scheduled for May 2025)

2.91(Million)

2.15
1.37

0.03

JUUDANKAI

2018/9

0.24
0.19
0.05

2019/9

0.76

1.39

0.84

0.46
0.30
2020/9Growing as a criticalinfrastructure supporting banks app

Upgrading due to renewal“T&I” Number of individual user IDs
on the API platform

TSUBASA Alliance◼ Utilization of jointly invested companies: T&I
Innovation Center, TSUBASA Alliance,
On-Ad, TSUBASA-AML Center

Flexibility ofresource expansion
T&I
total

1.95

0.53

0.75

0.95

2021/92022/92023/9Business continuity

Use of public clouds
Use of multiple cloud centers

Chiba
Bank

Strengthening of operation and maintenance
Strengthening of development environment

TSUBASA Alliance Co., Ltd. Business Strategy Department
New

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

Commence study to improve TSUBASA's economies of scale and brand value(from January 2024)
Field1

Field2

Monetization of FinTech
common platform

Strengthening our approach tocorporate with net deposits

1010Growth Strategy

11
11

Improving P/B ratio
Perspective on the P/B ratio*
P/B ratio

As of March 31, 2024
PER 14.75 times

＝

ROE

×

PER

＝

ROE

÷

Cost of shareholders’ equity－ profit growth rate

If ROE ≧ (cost of shareholders’ equity－profit growth rate), P/B ratio will be 1 or over

ROE of 1/PER = 6.8%
required to exceed 1x PBR(approximately 7.4% basedon shareholders' equity)

P/B ratio improvement measures
The Bank’s current P/B ratio is approximately 0.8.
In order to achieve a P/B ratio of 1, we will need a strategy of improving our ROE andincreasing our profit growth rate while lowering equity costs.

ROE⇒ Improve

Equity costs⇒ Lower

Profit growth rate

⇒ Increase*The Bank’s administrative equity costs are estimated using CAPM

Improvement measures
Further improve ROE◼ Improve ROE by
improving RORA

7％ or over.8％

approx6.38％
FY2022

FY2025

FY2030

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

Lower capital costs

Ongoing profit growth◼ Reduce “information asymmetry”
between the Bank andshareholders by expanding
non-financial disclosures andimproving shareholder
engagement◼ Consolidated net income plan

Shrinking risk premium beta

(Billion yen)

75.0

FY2022

FY2025

60.2

100.0

FY20301212Growth Strategy
FY2022 results

Fortify existing business

Net income…￥60.2 bil.
RORA…0.75％

ROE*…6.38％

Resource allocation
Identify 370 employees via rationalization/
review of branch network, and allocate
them to growth areas

PeopleReorganization

PeopleNote

Head Office(planning)

55

Strengthen sales branch
support structure

Head Office (sales)

85

Enhance specialists

Head Office(administration)

40

Consolidate administration ofsales branches at Head OfficeGroup companies

70

Prioritize sales divisions

Sales branch

110

Branch opening, enhance RM

HR development

20

RM development, DX trainee etc.

Total

Corporate

RetailIncrease market share in areas
abandoned by other banks
Increase loans via new branches

Enhance businesssuccession, M&A

Improve consulting
Improve proposals to nonborrowers

Diversified financemenu

Financial
product

Housingloan

Trust/
Inheritance

Increase in net income from fortifying existing business… approx. ￥12.0 bil.

RORA improvement…+0.05％
Digital/new business
Digital+1.4 bil.

Additional app, portal
featuresInternet Loan Center

Four major measures
for invest trust

Transaction data, credit
checks using AI, etc.

370

Things/money

Comprehensive financial
consulting(Billion yen)

Strategic
investments

Expen
-ses

Existing
business

5.6

1.8

Branch network, sales branchterminal maintenance, etc.

Digital/ne
w business

6.9

3.5

App, portal, BaaS, advertising,
etc.

Other

3.5

8.7

Human capital, digital
infrastructure, etc.

Total

16.0

14.0

New business+1.6 bil.

Cashless

Advertising

electric powerbusiness

Chibagin Market

BaaS

Metaverse

Real estate fund

Energy business

On-Ad

Anti-money
laundering center

Collaboration withSony Bank

Increase in net income from new business initiatives… approx. ￥3.0 bil.
RORA improvement…+0.03％

Notes

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

FY2025 plan

30.0
※ ROE: Shareholders' equity basis

Net income…￥75.0 bil.
RORA…0.83％

ROE*…
7％ or over13
13

Continuing Growth toward FY2030
Fortify existing business, strengthen new businesses and digital initiatives. Capture domestic interest rates hike as upside.
Current mid-term plan

From the next mid-term plan

Rise in domestic
interest rates

ROE
About 8%ROE
above 7.0%

¥100.0billion¥75.0
billionROE
6.38%

New businesses
and digital businesses¥3.0 billion¥60.2
billionFortify existing business¥12.0 billion

Return on investment inapproximately 3.5 years

Strategic system investment and expenses
totaling approximately ¥20.0 billion over three years
Human capital investment
approximately ¥0.4 billion (FY2025)

FY2022

ROE improvement
effect resulting fromrising interest rates

FY2023Further strategic spending

FY2024FY2025

FY2028FY2030(1st year)(2nd year)(5th year)(7th year)

Scenario 1+0.14%+0.19%+0.24%

Scenario 2+0.65%+1.58%+1.56%

Around 8.5%

About 9%Scenario 2 /ROE

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

About 10%14
14

Interest Rate Rise Simulation
Simulation of interest rate increase due to change in BOJ's policy rate
JPY investment and funding structure￥19.9 tri. as of Dec. 2023

Scenario 1

Scenario 2

Policy rate unchanged after policy rate change in March 2024

Policy rate to be raised to 0.5% in September 2024

・10-year JGB yield of 1.0%

・10-year JGB yield of 1.5%

・TIBOR level maintained after policy rate change

・TIBOR (until September 2024) Same as Scenario 1(Reference) 1M 0.191%, 3M 0.252%, 6M 0.223%(Trillion yen)
Marketability
investment, etc.
6.7
Excluding Ministry of
Finance loans
2.2
Ministry of Finance
loans
0.3

Marketability
procurement, etc.
3.2

・Short-term prime rate remains unchanged

・Short-term prime rate +0.5% from September 2024

Profitincrease
effect(billion yen)

Final year of
the mid-term plan
Market-linked
interest rate 2.5

Variable deposits
11.9

2.3

Short-term prime
rate, etc.4.8

0.6

Fixed (residential)
0.4

Fixed (corporate)
4.3

Investment
securities 0.9

Asset

0.1

3.4
0.3
1.9

Funding

4.2

0.5

3.0
3.0

4.9

0.6
3.8

5.5

0.7

3.0

3.0

1.4

1.4

1.4

1.4

1.4

-2.5

-3.2

-3.7

-4.0

-4.0

+0.19%+0.21%+0.23%+0.24%

2026/32027/32028/32029/3

1.2

23.0

Fixed
9.9
Market-linked
interest rate

7.5

Bank of Japan’scurrent account

7.7
4.9

31.0

2.0
23.1

34.9

37.5

2.6

3.2

(billion yen)

23.1

23.1

Prime

15.0

19.2

21.3

0.2

9.1

2.2

13.4

13.4

13.4

13.4

7.4

7.4

7.4

7.4

-28.1

-29.9

-30.8

-31.0
¥31.6 billion
increase inunrealized losses+1.56% on yendenominated2029/3 bonds-12.8
Deposit⚫ Calculated based on the difference from the market interest rate in December 2023.
⚫ Calculated on the assumption that the outstanding balance is unchanged from theportfolio at the end of December 2023.
⚫ JGB yields are estimated based on past yield curve fluctuations.
⚫ 60% pass-through rate of fixed-rate loans for corporate.
⚫ Short-term prime rate is unchanged since December 2023.
⚫ Deposit interest rate is raised from April 2024.
⚫ Repurchase the same amount when the JGB matures, reflecting the rise in market
interest rates.

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

26.0

Yen bonds¥10.9 billion increase inunrealized losses
on yen-denominated bonds

ROE effectProfits +0.14%
decrease
2025/3
effect3.0

Final year of
the mid-term plan

Total

4.3

2.7

Fixed deposits
3.1
Equity funding, etc.
1.5(After September 2024) Average interest rate in December 2023 + 0.60%

ROE effect+0.65%+1.58%+1.67%+1.66%

2025/32026/32027/32028/3⚫ Calculated based on the difference from the market interest rate in December 2023.
⚫ Calculated on the assumption that the outstanding balance is unchanged from theportfolio at the end of December 2023.
⚫ JGB yields are assumed to rise in parallel with all maturities (+0.89%).
⚫ 60% pass-through rate of fixed-rate loans for corporate and 80% pass-through rate ofprime loans.
⚫ Deposit interest rates are assumed to be raised in view of a rise in market interest rates.
⚫ Repurchase the same amount when the JGB matures, reflecting the rise in market
interest rates.

15
15

Transformation through DX ①
Customer experience changes steadily by providing app
Number of individual customers /app account registrants

Providing highly convenient app
At present

4,200

4,120

4,052

4,013

3,971

3,927

3,950

35.7%

Approximately 970,000 people registered for the app in March
2024, compared to approximately 3 million active accounts(Operating account penetration rate:

30.0%

Individual
number ofcustomers

33%)

24.0%

(Thousands)

Appnumber ofusers(Thousands)

Changing customer experience seen in numbers

18.4%
App
registration
rate

Number of remittancetransfers*

Opening of ordinarysavings account*

36.1%
+9.5%

Overall remittancetransfers

2023/2
FY20200

FY2020

FY2021

FY2022

FY2023(estimate)

FY2024(plan)FY2025(plan)

Opening of
NISA accountApr. 2023
Release41.6%

Apr. 2023
Release41.2%

2023/22024/22023/22024/2

Card loan contract

Apr. 2023
Release44.0%

2023/22024/2

8.0%
3.8%

26.6%
2024/2

514

972

1,500

305

Opening of investment
trust account+4.2%+21.0%
7.9%

2023/2738

1,236※ Only open ordinary savings accounts is web accounts opening

tax and publicfinance collection

28.9%

7.8%

0.0%
FY2019Percentage of transactions using app (monthly comparison)

12.9%

2024/2
FY2023(estimate)2023/32024/2Rate ofincrease

Number of cases

5.44 million

6.97 million

+28%

Fees

¥1.58 billion¥1.97 billion+24%

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

※Overall number of remittance transfers increased.
Although unit cost of commissions via app is set lower, overall commissions also increased.

16
16

Transformation through DX ②
DX has increased revenues and reduced costs / further transforming customer experience

Effect on revenue and cost

With the digital transition of transactions, it is possible toreduce the number of branch staff while increasing grossbusiness profits for retail customers.

43.9
41.8

Individual
Gross businessprofit(billion Yen)

39.9

37.9
2,186

2023/3Further transforming customer experience

Number of
branch staff

Number of
branchstaff(people)

2,020

2,077

2024/3(Estimate)2025/3(Plan)

2,007

2026/3(Plan)FY 2019

FY 2022

FY 2025 (Plan)

2,484 people

2,186 people

2,007 people(▲298people /▲11.9% in the previous mid-term plan)

Using data obtained through digital transactions andanalyzing with AI to further transform customer experience※ Excluding new graduate employees

Number of branch staff / Individual goss business profit（▲179people / ▲8.1% in the current mid-term plan)

Aiming for Customer Experience“Just when I was interested, I got a 〇〇 from Chiba Bank”
P18
Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

17
17

Transforming Customer Experience“Just when I was interested,
I got a 〇〇 from Chiba Bank”

Transforming customer experience by achieving proposals that meet customer needs in a timely manner in all channels
Improvingcustomerexperience

Examples alreadyrealized
Building needs-rank-model

E-mail marketing

Approach by person in charge

Predicting interests and needs

We can see which customers
are actually interested

Timely approach tointerested customers

Data analysis

ClickTransforming customer
experience
Digitaladvertising
HomepageApp
Chat

E-mail opening

Proposal by person in charge using data

“Just when I was interested,
I got a 〇〇 from Chiba Bank”

Telephone
E-mailBranchVisit

Integrate dataat all customer contacts
Predicting needs throughdata analysis /AI
Approaching customer using data
in various channels

Proposal in person
TelephoneDM
E-mailApp notification

Chiba Bank understand me...

Become Chiba Bank Group fans
Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

For the Bank's
growthExpansion ofcross-use
Improvement of
productivity
Further
improvement ofgross businessprofit per employee
18
18Retail Business (Increase in Gross Profit Per Customer Through DX)
Aim to increase the number of digital customers and increase the unit price of customers by promoting the use of products and services
Improvement process of retail business revenue
based on the DX Strategy
Strategy 1
Shift to digital customers
Increase customer resolution throughdata analysis
Example of display

Strategy 2
Increase in the number ofcustomers using products

Change in customer composition
during the mid-term period

DigitalNon-digital

1.00 mil. people

1.23 mil. people

2.40 mil. People

25%

Non-digital

3.00 mil.

Account use*1
49%¥ 5 thou.

1.94 million people

57%

Digital1.80 mil. people

43%

70%

PeopleTransaction category

0.72 million people30%

28.1 mil. People

75%

Product use
13%¥ 30 thou.

(plan)

2024/2

DigitalNon-digital

Total of 4.04
Million people

2026/32023/3

Increase customer satisfaction and shift
upward to the transaction category

Cross-use*2
4%¥ 74 thou.

Classification of customers
Percentage of individual
customers
Gross profit per capita*1. Account use: Customers who satisfy any of the following conditions: salary/pension receipt, balance of ¥ 300 thou. or more, and use of account transfer*2. Cross-use: Uses two or more types of products

Total of 4.00 mil. people

Total of 4.04 mil. people

Total of 4.20 mil. people+0.2 million people
during the mid-term plan
Change in revenue composition
during the mid-term period2026/3 (plan)
2024/22023/3

Account only
34%
¥ 0.3 thou.

1.38 million people
Non-digital
customers
71%¥6 thou.

Digitalcustomers
29%¥16 thou.

Digital segment
Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

Revenue from digital
customers is over 50%

Non-digital¥ 15.8 bil.

Non-digital¥ 20.3 bil.

DigitalNon-digital¥ 17.6 bil.

¥ 19.8 bil.

46%

54%

Total of ¥37.9 billion

50%

36%

Digital¥ 20.1 bil.

50%

Total of ¥39.9 billion+ ¥6.0 billion
during the mid-term plan

Digital¥ 28.1 bil.

64%

Total of ¥43.9 billion
19
19

Retail Businesses (Increase in Gross Profit Per Customer Through DX②)
The person in charge will proactively approach the "customers to increase through interviews" and "customers to increase digitally" to improve the gross profit

Future direction of business for individuals

How one would like to be

Branch staff
A case of a large branchin Chiba prefecture
Residential
loan :A
Investment
Trust :D・・

A's current situation

1.Customers who canbe interviewed

・Having about 700 customers in charge
・Some customers have contact points, and many do not know each other.
・Proposed only for sales of financial products・Wants to increase the number of customers to whom proposal is made,but is too busy to make contact with them

Action 1

MissionIncrease the number ofcustomers able to beinterviewed
200 customers

How to manage
customers in charge

Activities for consulting customers(contactable and product use)
Increase customer satisfaction→ Expand transactions through cross-use

１ Exploring needs
deeply by theinterview

Customers
who can beinterviewed

３ One to One
marketingcustomer
２ Increase
resolution by using digital

tools
wide range of proposals
４A
that go beyond asset
management

Activate transactions with customers having few
contacts (broaden their horizons)Getting customers to "use Chibagin" through digital

Digitalcustomers

Non-digital
customers

700 customers in charge

Increased transactions
increase per-customer
revenue

Cross-use

Productsuse

2.Customers whoseneeds are identified
Account
through datause
analysis
Active proposal activities incooperation
Account
with headquarters
only
Digitalcustomers

Non-digital
customers

How can we raise customer satisfaction?
System in which each and every person in charge can think independently
Identifying the needs of “1. Customers who can be interviewed"
and making a wide range of proposals
Product use ⇒ Cross-use
Ask 2.Customers whose needs are identified through data analysis
to use products
Account only / Account use ⇒ Product use

Further enhancement of app functions
Awareness-raising activities at workplace seminars,
etc.

Action 2
Customers who cannot meetwith us activate digitally
125 or more

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

App set when opening an account and concluding a
housing loan contract

Residential
loan :A
Investment
Trust :D

Voluntary management improves
employee motivation andengagement

Approach from headquarters
20
20

Corporate Business (Increase Revenue Through a Hybrid of Real and Digital Channel)
Contribute to solving social issues in the community by getting to know our clients well and providing continuous solution proposals as an assistant to management
Improvement process of corporate business revenue

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

Basic financial and communication functions
Chibagin
Business Portal

Business information■ Strengthen customer connections

Digital services
Borrowers＋ Non-borrowers■ Accumulate transaction data (including other banks)

Transaction category

Indispensable basic infrastructure
for business activity

Expand corecustomer

Expandborrowers

Advisory Specified
corporate
About 900 customers¥10,400 thousand

Example of display
Classification ofcustomers
Annual gross profit percompany

Borrowers
About 0.05 million
customers¥1,300 thousand

Client with active deposits(non-lending)About 0.097 million customers¥42 thousand

Hybrid of in-person and digital

In-person

Provide the expertise of a consulting firm

Corporate portal
contract client(64% of borrowers)

Corporate portal
non-contracted client(36% of borrowers)

Close support for essential management
issuesGrowth support

Revitalization
supportSuccession support

DX

GX

WX

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

Digital segment

21
21

Corporate business (Strengthening Corporate Solutions ①)
Corporate solutions will further expand both finance and non-financing
Corporate solutions-related revenues(Billion yen)

Record-high profits for the

17.5
15.7

12th consecutive year

15.8
Business
matching

1.52
0.53
0.73

13.2
11.8

Advisory

0.40

10.0
8.4

9.1

M&A

6.4

Management
succession

12.14

Syndicatedloans, etc.

3.3
1.1

0.8

FY2010FY2011FY2012

2.1

2.0

1.5

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

0.34
FY2022

Strengthening advanced financeCapturing national andlarge-scale projects

FY2025Plan

TSUBASA Aliance
Toward further
presence

Chiba Musashino AllianceTo strengthen sales in theTokyo metropolitan area
Sustainable finance

FY2023Plan

Privatelyplacement
bonds

Chiba Yokohama Partnership
Syndicated loans

PFI

Project finance

LBO loans

Real estate funds

Strengthening non-financial solutions
New

Solutions to social issues
according to the times

Corporate advisory

ICT consultations

To build strong relationships
with major business partners

Use of buyout funds

Full-fledged hands-on support
for growth, revitalization andsuccession

New

M&A / business succession

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

Service as main bank22
22

Corporate business (Strengthening Corporate Solutions ➁ / Advisory)
Thorough support as an management assistantContract breakdown

Number of contracts/
fee income（cases)

227

185

137

Corporate advisory

5

0.19

0.31

0.49

8%
3%

194

11%

80%

0.53

47

0.02

3Q

239

100%

6%
1%

0.35 0.36（billion yen)

FY2018 FY2019 FY2020 FY2021 FY2022

Number of projects(as of the end of September 2023)

7%

FY2022 FY2023
3Q
3Q

6%
11%

26%
19%
40%

Complete

14%

11%

19%

26%

6%

2%
6%

11%

12%
17%

3%

7%

22%

10%

Under
consideration

260
cases

Yearlymeetings

520
cases

Incl. 60 ICT
consultations

12%

20%
Incl. 210 ICT
consultations

36%
19%

Utilization of intra-group resources

2022/3

Digitalization

Organizational
restructure
Tourism
strategy
SubsidysupportManagement
system
Labor

11%
15%

18%

2023/32023/90%2021/3

Other

11%

17%

60%

Strengthening problem-solving capabilities

Mid-term/management
strategy

Chibagin ResearchInstitute

Chibagin Computer
Service

Capturing external resources and accumulation of know-how
Acceptance of temporary transfersfrom consulting companies

Secondment to a consulting
company

Applications for ICT consultations

ICT consultations

Improving ICT consultations’ awarenessCompany A (forwarding agent)

Number of
consultations

Issue : response to the 2024 Problem for Carriers

Contract
success rate

Step1

Improving the momentum for digitization in SMEs

Accumulation of proposal know-how

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

Recognizing the issue of limiting overtime working hours (the2024 problem), the company is struggling to select a system thatmatches its own needs. Contribute to solving problems by close
support, from the viewpoint of visualizing work flow.

Support for analysis
of current situation

Step2➡ Support for

selection of system

➡

Step3
Support forestablishment ofoperation
23
23

Corporate Business (Strengthening Corporate Solutions ③ / M&A and Business Succession)Acquisition of know-how on M&A and business succession ➡ Value-up of regional businesses and support for smooth succession
M&A/business succession

Expansion of project stock

ClosedProjects(M&A/businesssuccession)

Closedproject

103

Active project
30
cases

In action

600
cases
Start (July 2009)

148

Consideration of hands-on support using buyout funds

214

Limited Partnership

98

60

65
cases

0.73

Revenue(M&A only)

Stock proposal

1,450
cases

0.60
0.29

Current (December 31, 2023)

0.25

0.19
（billion yen)

FY2018FY2019FY2020

FY2021

FY2022Advisory committee
members
Advisory
Personnel forcommittee
hands-onConsultation Expressionof opinion

General Partner
Area distribution of M&A deals for saleSuccessionless projects in the region
Accumulation of small- and mediumscale projects by leveraging customer
base and network

Outside theprefecture
20%

Buyout fund
EquityInvestments

Collaboration

EquityInvestments

External advisor

Closecollaborationin project
team

Project manager

In Chiba
prefecture 80%

Mainly inareas notadjacent toTokyo

Involvement in large-scale projects
through accumulation of know-how andcustomer needs

Personnel forhands-on

Personnel forhands-on

Personnel forhands-onBank headquarters
Group companies

Investment and hands-on support

Introduction of management
succession database
Reliable accumulation of
information

Utilization of funds both within andoutside the group

Long-term, continuous approachclosely with the management

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

Support for smooth business succession for regional businesses

Hands-on support
24
24

Corporate business (Strengthening Corporate Solutions ③ / close support for Companies)
Solution Review Meeting x Advisory Specified Corporation Meeting to support for growth and revitalization
Solution Review Meeting① External environmental impact survey(monthly assessment)② Individual toss-up from branches③ Thematic surveys (printing, construction, etc.)

Approximately 900 core companies in the region
were selected as advisory specified companies

Always grasp the actual
status of clients

Assessing the actual situation of the target borrowers at the meeting,identifying and sharing management issues with management,
investigating new risk factors, and identifying target borrowers

Solution Review Meeting

In order to provide thorough business support as apartner, the management issues of each company are
discussed deeply through meetings.

Headquarters sales department,
Headquarters credit review
department and Group companies

Banks that are essentiallymain borrowers with large
conservation deficits and areurgently needed

Designated Attention
Claims committee

Advisory Specified Corporation Meeting

New designation or cancellation of borrowers
Discussion of action policy

Chairman: Executive in Charge of Credit Unit

Understanding ofmanagement issues
with client

Branch×
Headquarters sales department,
Headquarters credit review
department and Group companies

Providing specialized
expertise

Net credit costs / Ratio
Net credit
cost ratio

Providing solutions for creating corporate value

Excl.
precautionary
provisions

8

6

Revenue from finance
To prevent credit
cost incurrence

Revitalization support

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

Revenue from nonfinance6
10.4（billion yen)

[Total Scale]
Sales: ¥6 trillion
Ordinary income:¥350 billion
Net income:¥250 billion
0.18 million employees

New non-performing loans
(bp)

6

9.5

Growth support

9

Advisory Specified
Corporation

5(Billion yen)
10.9

2
7.1

-1

9.5

8.7

0

6.5

6.8

2.0

1.9

8.0

Net credit
cost
0.3
Precautionary
provisions

2.2

3.2

3.7

2.2

2.6

2020/3 2021/3 2022/3 2023/3

2026/3(results)(plan)

1.8

2020/3 2021/3 2022/3 2023/3

2026/3(results)(plan)

25
25

CashlessNumber of group cardholders and franchise locations
Number ofcardholders

From October 2019
To enter the franchise locations by the Bank

Completion of group business restructuring

1.18

Chiba Bank

From October 2020
Issuance of VISA debit

0.83
0.54

0.028

0.54

0.033

0.038

0.042

0.047

0.068

2024/4 merger

Number of
franchise locations

ChibaginDC card2023/10 Company
name changed

2020/32021/32022/32023/32024/32025/3

franchiselocationsby the BankTransaction
volumeEnhancement of point ofsale register function

1,000.4•

Linking point of sale register and payment
terminals (For dispensing pharmacies)•

Provision of mobile point of sale services

Choshi Tourism Association

6.2(February 2024)

Signing of agreement
regarding referral of
franchisees

631.2

In the future, contracts to be signed withanother tourism association

509.8

425.1

457.1

437.1

4.4

Visa
Debit

3.8

3.0

3.2

3.1

Profit2019/32020/32021/32022/32023/3Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

Streamlining backoffice operations

New Initiatives*Profit of group company are calculated based on the same criteria as the banks (Fees and commissions received).

(billion yen)

Chibagin
Card

Enhancement of
Proposal

2026/3

Group transaction volume and profit

Approximately 60 basis points ofthe transaction volume is profit*

New

Strengthening service
improvement

For further business expansion(million customers / locations)

2019/3Chiba Bank

2023/10 JCB card-related
operations were transferred.

Chibagin
JCB card

0.73
0.63

2024/4～

Until now

2024/32025/3

Strengthening
cooperation
with app•

Single sign-on connection from app to debit
cardholders website (planned)•

Application function (planned)

2026/326
26

New Businesses (Anti-Money Laundering / Metaverse / Energy / BaaS)
Enhance non-financial services and diversify profits by entering new business fields
TSUBASA-AML Center Co., Ltd.
TSUBASA banks
Bank ABaaS business

Metaverse

TSUBASA-AML Center Co., Ltd.
・Increasing the sophistication and efficiency ofoperations through the consolidation of know-how
・Effects of reducing system and personnel costs

New

New home showroom experience isoffered by Metaverse

Provide financial
and other functions

Business operators

Bank BFinal
decision✓ Separate management ofdata for each bank

AI

Business
operator
customers

Primary
verification

Notified
services• Rating model• Monitoring scenario• List maintenance(1) Operation aggregation

Cashless
Platform

Loans

AML system

Database

Energy business(2) Planning operations

TSUBASA-AML Center Co., Ltd.
(Chiba, Daishi Hokuetsu, Chugoku and NRI
participated)

Wholly-owned subsidiary
Himawari Green Energy Co., Ltd.
■Power generation
management
Operation/management of
power plants

Collaboration■Sale of energy
Sell and generate energy in-house

TSUBASA Alliance, Co., Ltd.
(TSUBASA alliance 10 banks participated)
AML Center

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

■Others
Consulting service
Environmental value referral■ Starting operation of the power plant

1st
ChibaginGroup

Energyretailers

Regionalcustomers

Asahi
Power Plant
Dec. 2023

2nd

New

3rd

In multiple cases
uder consideration

Annual electricity
production

Number ofhouseholds

About 12,600 MWk

About 3,500 households■ Starting intermediation of Feed-in Tariff
non-fossil certificate (Mar. 2024)

New

27
27

New Business (Chibagin Market)
Continue to enter new business fields to enhance non-financial services and diversify profits
House purchase concierge

Regional trading company: Chibagin Market
STEP1 regional production“Trigger regional revitalization” within Chiba
Crowdfunding

EC site25-49 years old
No housing loans with
the Bank
About 1.6 mil.
customers About 4 mil.

Revenue image
IncomeBranding
Income summary

customers

2

Expenditure
1st
year

Establishment of new business model that stands upstreamof commercial distribution
Uncover hidden
needs through datautilization/personali
zationHouse purchaseconcierge service

Realtors

Chibagn Market

Chibagin Leasing

Chibagn Market

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

2nd
year

3rd
year

4th
year

5th
year

Expect to be profitable in
FY2023 (3rd year) as originallyplanned0.25 mil. customers(about 15%)
have the potential to consider
purchasing a home

Concierge service target

Strengthening channels to approach targets
Websiteadvertising

Landing page
production

Owned media

Auto leasing for individuals

Starting to provide services
for group executives andemployees[Major Areas]

Identify needs and issues
Education

Statistically grasped through e-mailmarketing

The bank's Digital Strategy Division is also using the database to identify potential
homebuyers out of 4 million customers.

Chibagin Leasing

Health/nursing

1

Service sophistication to be
expanded to generalcustomers
Chibagn Market

Consideration of car
concierge

Food retailers

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

28
28

New Businesses (Advertising)
Providing services at every stage, from brand recognition to purchase of products and services by consumers
Brand awareness and response media

Advertising media business▼Digital signage in front of Chiba
StationrecognitionBranstrategyInterested
and concerned
Comparingand examining
Purch
-ase

Digitalsignage(in front of
Chiba Station)(Within the
Bank)

Smart
phone
(Chigin app)

▼Chibagin app _recommendation

OperationscreenAdvertising▼ATM top displayAdvertisingWebadvertising

Advertising※Under consideration

Type of media

Destination media

Advertising consulting services

Support for business issues
Financial consultancy
Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

Number of sites

Number of
Ad space

Digital Signage in Chiba Station

One place

12 spaces

Branch lobby signage

152 stores

270 spaces

ATM signage

93 stores

270 spaces

ATM top display

12 stores

108 spaces(Number of Registrants) 0.94 million

3 spaces

Total advertising spaces

663 spaces

App

CustomerMarketing support in
Collaboration with▼e-mail*Advertising(Listing)

E-mail addeliveryConsumer situations▼ATM corner signage

Advertising

AdvertisingTopdisplayLeadgenerate-onstrategy▼lobby signage

As of the end of
March 2024
Ratio of contract

About 34%

Gross business profit

Onionnews Inc.
(20% owned by the Bank)

Advertising planning,production, and operation
support2023/10～Full-scale development

3

11

12

FY2023(Annualized figures)8¥0.15 billion

5

FY2025(plan)¥0.3 billion(Million yen)

Oct.

Nov.

Dec.
FY2023 2H

Jan.

Feb.

29
29

New Business (On Ad / Real Estate Fund / Joint Business Plan)
Remote Financial Consulting Service: On ad

On Ad

Joint Business Plan (JBP) with Google Cloud

Agreed in January 2024

Contribution to“Financial Wellness”

New

Neutrality

Individual

Corporate
ServiceUtilization of Google's marketing tool, Google CloudMarketing with online advertising and video

High rated by paying interviewees

98% of users are
satisfied with thecontent of theinterview

SatisfiedCompleted
Online27%

Specialized
adviceVery satisfied
71%

Data analysis technology with Google Cloud's AI and machine learning
Development of cloud data environment

95% of users
intend to reuse theservice

High-level solutions via real estate funds

Enhancing One-to-One marketing
Accelerating the accumulation of know-how through
JBP by strengthening the system

Step-by-step expansion of the pipeline
while deeply exploring each customer's management issues

Different advertising companies and individual
budgets for each product
Other ongoingprojects

Examples of management issues

OfficeWe want to develop a new logistics
facility, but we don't want to expand
balance sheet

We want to liquidate fixed assets to fundnew store openings and store
renovations.

Real estate fundFinancial institutions
and investors
including Chiba Bank

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

App

Card

NISA ･･･

Bid tendercompetition

Advertising
company A

Advertising
company B

Advertising
company C ･･･

Decreased
learning
efficiency

BudgetBudgetBudget ･･･

Eachproduct

Unsecuredloans

WorkingGroup

Working
Group

Advertising
company X

Advertising
company Y

Residence
Logistics facilities

Finance

Lack ofcordination

Organize into two working groups andstrengthen the system

Community-based
commercial facilities

Hotels, etc.

Diversification/inefficiency

Establishment of JBP Strategic Budget

Consolidation/efficiency

30
30

Human Capital ①
Build an organization that creates new social value based on the "two human resources strategies"
To create a local community better suited to bringing each person’s hope to life

Purpose
Vision

An Engagement Bank Group that works closely with the community

Human Resource Development Policy: Become someone who keeps fighting for the customer
Based on our human resources development policy, we will actively invest in human resources
development to enhance the capabilities of each and every employee of the Group, leading to thesustainable growth of the local community and the Group.

Mission in thehuman
resources
sectionThe mid-term
plan
human
resource
strategy✓ Develop human resources approach people and work with sincerity as professionals✓ Develop human resources who can think and act autonomously with empathy for the Purpose✓ Respect each employee’s hope and create a comfortable workplace① Career development

➢

Major
initiatives
recently

Creation of an “Organization with high personnel
engagement”

Development of a “Chiba Bank Group
where people grow”➢

Support for growth
Development ofmanagemen personnel /personnel in charge ofcorporate and retailbusiness
Support for Challenges
Expansion of job posting
and trainees

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

➁ Job satisfaction④ Unified Groupmanagement③ Diverse organization➢➢➢

Raising salary
Raising starting salary
Basic salary raising
Expansion and revisionof dormitories➢

Supporting the activities
of senior and veteranemployees➢➢

Group personnel
exchange
Establishment ofTransfer system fromthe group companies
Standardization of
personnel management
system

⑤ Human resources
portfolio➢

To strengthen career
recruitment➢

Establishment ofProfessional courses➢

To Continue DX trainees

Unified group recruiting
31
31

Human Capital ②
Human Resource Development Policy“Become someone who keeps fighting for thecustomer”.

KPI

Three core elements¥0.3 billion

Management personnel
development Program

Number of 86 people
trainees
FY2023 results

Personnel in charge of corporate andretail business development programs

280 people
Plan for cumulative total for theperiod of the mid-term plan

② Job satisfaction

Pillars of humanresources strategy

Engagement survey

Sustained salary increases

Expansion and review ofsingle-person dormitories

Raising in starting salary

Development of a
“Chiba Bank Group
where people grow”③ Diverse organization

Creation of an“Organization with highpersonnel engagement”

Continued employment after
65 years old (senior)

Senior staff branch
general manager

Enhancement of the Bank’s
employee continuity system

Expanded childcare
leave system

116 rooms
158 rooms
FY2025 plan

Transfer system for group companies

Group-wide development of personnel management system⑤ Human resources portfolio
Referral adoption

FY2024 planNew
FY2023 results
dormitories
for employee④ Unified group management
Group-wide hiring

5.6%

Ration of raisingsalaryProfessional courses

Group human
240 people
resources exchange FY2023 results

Net business income(before provisions to generalallowance for loan losses)

per the bank and companies
employee¥26 million

To strengthen career recruitment

DX trainee

Number of Recruitmentof mid-career employees

100 people¥23 million

FY2023 results¥20 million

Realization of the Bank Group's Purpose and Vision

Expansion of job
postings and trainees

gain more
supporters

FY2025 plan

➀ Career development

Human Resource
Development Policy

utilize your own
strengths¥0.4 billion

Measures

Chibagin Academy

think things
through

FY2023 results

Providing value to customers and regional communities/Improving employee productivity

Human capital
investment

FY2025

FY2024FY2023Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

32
32

Human Capital ③
Expansion of investment amount and number of employees trained (investment target) / Development of the system that enables diverse human resources to play an active role
Introduction of a new personnel system (from April 2024)

Personnel development

Previous Mitd-term Plan results

Professional courses

Current Mid-term Plan

(2020/4～2023/3)

New(2023/4～2026/3)

148

280

nearly・Appointed in specialized fields
・Job-based salary only・Design to increase the range of bonuses due to job
performancepeopleDoubling

peopleFY2023
results

Mid-Term Plan(cumulative total)

Corporate sales

10 people

50 people

Retail sales

10 people

50 people

DX personnel

25 people

60 people

External trainees dispatch

30 people

90 people

Management personnel

11 people

30 people

Total

86 people

280 people

173

293

219

242
First half138

Group companies ➡ Transfer to the Bank

414

Equivalent towage hike rate

1.4%

Traning costs/
qualification
incentives, etc.

Training costs/
Incentive for
qualification, etc.

System expenses

Change from
2023/3＋¥170 million
peremployee(¥ thou.)

44

2022/357

2023/32024/32026/3(Plan)

65

79

112

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

・Expanding dif. Between consolidated and nonconsolidated through the revitalization of thegroup companies

Measures to raise salary for each level

Traning institute2021/3
Investment

New・Relocation of employees within the group forexisting group companies employees with highmotivation and ability

Basic salary increase
Full-year (Estimated)

・Retention of existing professionally oriented
the bank employees

Transfer system from the group companies

Human capital investment(¥Million)

・Expansion of career recruitment ofhighly-skilled specialists

Establishment of job/specialist-type personnel system

Supporting the activities of veterans New

New

Policy to implement the
average salary raise of 5.6%
(July 2024)
Raising in starting salary

0.23
millionyen

New[ Bank employees (over 55 years old) ]・Increase the position promotion of employees
over 55 years old[ Senior (over 60 years old) ]・Position promotion system
・Introduction of bonuses
・Continuing system over 65 years old

0.26
millionyen
From April 2025

33
33

Human Capital ④
Expansion of investment amount and number of employees trained (investment target) / Development of the system that enables diverse human resources to play an active role
Recruitment of mid-career employees

Group unified human resources management

Recruitment
channelCareer hiring trends

Recruitment
consultancy
service(People)Advertising
placement
Scouts from job
information
websites

100
30

15
FY2021

FY2022

Referral

FY2023※Includes temporary employees, dispatched employees, and employees on secondment.

Direct applicationfrom websites

New

Unified group recruiting (new graduates joining the bank in April 2024)■ Chigin Computer Service (CCS)
Joined the bank as the engineer course (13 employees) and assigned to CCS■ Chibagin Securities and Chibagin Leasing: Hired in the same course as
the bank general employment

Enhancement of group human resources management (from April 2024)
Introduction of the bank-implemented talentmanagement system to all group companies

New・Implementation of group unified personnel measures
・ Deepen understanding of personnel among groupcompanies and work closely with together

Chibagin Academy
Breakdown of recruited career(People)Breakdown of former industry(People)Sales
17※Plan to expand the content in the future
At any time, anywhere, or many times

Corporate

Learning time results

solutions19

18

Other professonal※ Calculated on average total study hours per person per year

Non financial
DX

36

Launched in April 2023, and released morethan 5,000 titles under 1,511 titles.

industry
41

Market10

Financial(hours)industry

40.0

59

Unify learning tools

21.9
16.0
Individualized training programs
FY2022

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

FY2023
1H

FY2025(Plan)

34
34

Action based on Business Improvement Plan

35
35

Purpose / Vision / Three Pledges

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

PurposeCustomer

Chibagin Group

Fiduciary Duty
PolicyEmployees
Human Resources
Development Policies

Investor

Contribute to the resolution of regionalsocietal issues

Job satisfaction/compensation
supporters

Dividends

Fiduciary Duty Policy -Policy for acting "for the customer”Offer an empathetic set ofvaluesSupport for prosperous lifestyles

Human Resources Development Policy-Policy for "Promoting the growth and development of employees”“Become someone who keeps fighting for the customer”.
think things throughutilize your own
strengths

gain more supporters

Three Pledges - Action principles for the achievement of the Purpose and the implementation of fiduciary dutyWhenever making a proposal to a customer or making a business decision, we always stop and think, will this proposal or decision lead tothe realization of the customer's
wish

VisionCopyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

a solution to the customer's
problemthe realization of prosperous
lifestyles for the customer

An Engagement Bank Group that works closely with the community
36
36

True Cause Analysis of Problems / Four Measures
The most important initiative is the penetration and thoroughness of the Purpose and Vision etc., which are common to all issues.

True cause analysis

Issue of establishment of operational
management system(problem of incentive mechanism)• The system in which structured bonds were evaluated inrelation to the volume of operations.
• While there was a preference for sales of structured
bonds, the problems and risks associated with structured
bonds were underestimated.

Major Initiatives①
Penetration and thoroughness of
the Purpose and Vision

Establishment of
Business Operation
SystemFour major measures for investment trusts
Elimination of profit targets for retail business
Focus on Fiduciary Duty and activity
Training of retail comprehensive consultants

Issue of internal management system• In the 1st line, the three elements of (1) motivation, (2)opportunity, and (3) justification were established.
• In the 2nd line and 3rd line, the problem of risk detection
capability and response to detected risks wereinsufficient.

②③
Continued message
dissemination by
management to employee

Strengthening Internal
Control System

Diversification and sophistication of monitoring
methods
Advanced analysis of customer feedback(introduction of RPA and AI)

Penetration of Fiduciary Duty
PolicyIssue of business management system• Group governance issues
Problems in understanding the current situation,
identifying issues, and managing the progress of
instructions

Including the Purpose Vision
Penetration and thoroughness

Penetration of Human
Resource Development Policy• Organizational culture issues
Management is unable to respond appropriately to
problems in business operations and internal control
systems

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

④
Establishment of the Group Improvement OfficeStrengthening Business
Management System

The chairman of the Board of Directors waschanged to an Outside Director
Introduced Skill Matrix for Executives of groupcompanies

37
37

List of Major Measures① Penetration and thoroughness of
the Purpose and Vision

Implementation
timing

Implementation*1

Conducted engagement survey

September 2023●

Opened Chotto line to group companies

September 2023●

October 2023●

Introduced conformity verification tools

March 2024●●

Introduced 360-degree evaluation to group companies

1H of 2024●

Review of the 2nd line system (establishment of the Customer Support
Monitoring Office)October 2023●

Customer interviews by headquarters staff about sales of financial
products

December 2023●

September 2023●

Reviewed Fiduciary Duty Policy, established Fiduciary Duty Handbook

October 2023●

Established Three Pledges

October 2023●

Monthly Fiduciary Duty study meeting by all employees

October 2023●

Career support based on human resource development policies at personnel
interviews

October 2023●

Discussion by project team (two subcommittees in the bottom)

December 2023●

On the 23rd of every month, distributed video messages by Directors

December 2023●

Start of Fiduciary Duty hearing

December 2023●

Senior management and compliance training

December 2023●

Implemented Fiduciary Duty Special Award

2H of FY2024●●

April 2024●●

Implementation
timing

Implementation*1

Add*2

April 2023●

proposalability

Specialist training in retail comprehensive consulting●

Newly established practical training for newly appointed internal
administration supervisors

Advanced analysis of customer feedback (introduction of RPA and AI)
Diversification and sophistication of monitoring methods(Phone recording system, voice and video recording of visits,)

Eliminated return of profits incentives completely from the Securities
transactions based on the Bank referrals

Incentive

To eliminate banks' profit targets for the retail business④ Strengthening Business Management System

April 2023●

September 2023●

October 2023●

Establishment of the Group Improvement Office

October 2023●

Implementated customer satisfaction surveys for all group companies
customer*1 Including ongoing measures after implementation*3 The measures that are currently under consideration and have not yet been implemented are highlighted

Dispatch of Directors and general managers from the bank to thesecurities

The chairman of the Board of Directors was changed to an Outside
Director
One on One meeting with the president of group company presidents
Opinion exchange meetings between the bank Directors and groupcompanies
Introducted Skill Matrix for Executives of group companies

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

Organizational
culture*2 Based on the findings obtained in the course of implementing measures, it was added from the operation
improvement plan originally submitted.

●

Group governanceTraining and video distribution for Fiduciary Duty, behavioral change
to focus on activity volume

Through participation in the meetings of the Securities Audit
Department by the Bank's Audit Department, strengthening groupcooperation in the auditing department

Add*2

●

September 2024

September 2024

President as in charge of the Audit Department and deeply involved in
PDCA
Introduced culture audits② Establishment of the operational
management system
Implementated the four major measures concerning investment-typefinancial instruments●③ Strengthening internal control system

3rd line

Displaying the Purpose and Vision on internal PCs and business cards

Linking performance reviews to human resource development policies

Add*2

2nd line

Implementation*1

1st line

Implementation
timingOctober 2023●

March 2024●

September 2023●

Implementation
timing

Implementation*1

April 2023●

October 2023●

November 2023●

April 2024●

September 2023●

September 2023●

April 2024

●

Add*2

●

38
38

Changes through Business Improvement Measures / Verification of Actual Conditions
Measures

Verification of the actual situation

Penetration and thoroughness of
the Purpose and Vision

Building of internal management systems

Penetration of Fiduciary Duty Policy

Changes in channels (sales of investment trusts)

May 2023
P40

Continued message dissemination by
management

Change (output)

Verify problems and improvements by
establishing a wide variety of mechanisms tocollect customer feedback and feedback fromindividual workplaces and employees.

Penetration of human resource development
policyNon-faceto-face
22%
Faceto-face
78%

Before the Business
Improvement Order

Number of effective
interviews with retailcustomer

CX survey

Purpose and Vision Penetrate Project Team■App for investment trust

Engagement survey■Okane no Basket (Money Basket)

Unsigned and signed questionnaire■Chigin Money Guide (portal site)

Elimination of profit targets for retail business
Focus on Fiduciary Duty and activity

360-degree evaluation

FY2023 1H

FY2023 2H(Until February 2024)

Improvement in customer
satisfaction (NPS)FY2023 1H
Average

Oct. Nov. Dec. Jan.
2023
2024

Employee engagement

Chotto line
Internal hotline system

80%

Interviews with the Audit and Inspection
Division and the Group Improvement Office

Training of retail comprehensive consultants
FY2023 1H

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

Sales result of financial
products<Feedback from workplace and employees >Four major measures for investment trust■Complete paperless operation

At present

Approx.
doubleNPS survey(suggestion tool)Non-faceto-faceFace-to54%
face
46%

Change in activity volume＜ Feedback from customer ＞

Establishment of business operation system

February 2024

2023/112023/122024/1

Sympathize with the Chiba
Bank Group's Purpose andVisionDetail on the next page39
39

Efforts to Grasp the Actual Situation

Three intentions to
calculate CX indicators

External evaluation

Internal evaluation

CX index *1

Engagement survey

6.50

Intention tocontinue

6.00
Intention torecommend

Intention topurchase

5.50(Positive response rate)

Environment, Evaluation, Treatment,
and Compensation

7.00

From April toMay, 2022

Highestpoint in thebanking
From October to industry*2
November, 2023

80%

74%

Be sympathetic to the
Chiba Bank Group’s
Purpose and Vision

Feel that he/she is contributing
to society, customers, and thecommunity through his/her work

Deep connections

Average ofbanking industry*2

Satisfaction, Sympathy,
and Contribution

5.00
Company / Organization

Own work※1 CX index is based on CXMM🄬 of Nomura Research Institute, Ltd.
CXMM🄬is a registered trademark of Nomura Research Institute, Ltd.
https://www.nri.com/jp/service/solution/fis/cxmm （Japanese）※2 CX Benchmark Survey FY2023 is a survey conducted by Nomura Research Institute, Ltd.
Implementation period: December 2023

Challenging
Sense of growth

Purpose and Vision
Working environment

Human relationships

Society / Local community

Superiors and colleagues
Organizational climate

NPS® is an index for measuring customer satisfaction based on
the degree of recommendation.
(Percentage of respondents scoring 9-10 points- Percentage of respondents scoring 0-6 points)
0～6

7～8

9～10

※3 NPS® is registered trademark of Bain &Company, Fred Reichheld, Satmetrix Systems
1H FY2023 2023/11

2023/122024/1

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

Internal hotline system
Increase in the number of users

Engagement survey

Conducted on a basic
monthly basis whenfinancial instrumenttransactions are madeImprove job
satisfaction andsense of growth

Contributing to ourcustomers to the
local community

Compliance questionnaire

NPS® Questionnaire*3

Reflect in humanresources development
and measures

High-engagement
branches tend tohave a goodatmosphere

Openness and communication

2021/32022/32023/32024/340
40

Strengthening Governance
Strengthen efforts to enhance governanceOutside Director
Outside Audit &Supervisory
Board Members

Advanced Corporate Governance

General Meeting of Shareholders
Audit

Supervision

Appointment, remuneration andCorporate Advisory Committee

New

Changed the Chairman of the Board of
Directors to an Outside Director (April 2024)

Board of Directors
Audit

Outside Director
Chairman

Outside Director
Committee Chair

Audit &
Supervisory
Board

Appointed the Bank's first representative
director (April 2024)
Shorting terms of office for directors(2 years ⇒ 1 year) (scheduled for June 2024)

Business execution

Board of Designated Directors

Introduced Performance-Linked Restricted
Stock Remuneration Plan
(scheduled for June 2024)

President (Group Chief Executive Officer)
Group CxO and others

Ratio of Independent Directors
CEO

CSO

CRO

CBO

CIO

CDTO

CHRO

Group Chief
Executive
OfficerGroup Chief
Strategy Officer

Group Chief
Risk Officer

Group Chief
Business
OfficerGroup Chief
Information
OfficerGroup Chief
DigitalTransformation
OfficerGroup Chief
Human
Resources
Officer33%
3/9 people

Headquarters
Direction/
Management

BranchDiscussion/
Reports

Group companies, etc.

Audit

Audit andInspection
Division

Ratio of Female Directors

33%
3/9 people

Copyright © 2024 The Chiba Bank, Ltd. All Rights Reserved.

41
41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.