The Chiba Bank, Ltd.
IR Day (Part1)
April 8, 2024

Event Summary[Company Name]

The Chiba Bank, Ltd.

[Event Name]

IR Day (Part1)[Date]

April 8, 2024

[Time]

15:00 – 16:01(Total: 61 minutes, Presentation: 31 minutes, Q&A: 30 minutes)[Number of Speakers]

5
Tsutomu Yonemoto
Mutsumi Awaji

Yuko Tashima

Yasuko Takayama
Akira Eshita

President, Group Chief Executive Officer
Director and Senior Executive Officer, Group
Chief Strategy Officer, Group Chief Digital
Transformation Officer
Non-Standing Director (Outside Director andChairman of the Appointment, Remuneration
and Corporate Advisory Committee)
Non-Standing Director (Outside Director andChairman of the Board of Directors)
Executive Officer, General Manager ofCorporate Planning Division

Yonemoto: Hello everyone. I am Yonemoto, President of the Bank. Today's theme is Growth Strategy. First,
please see the table of contents on page one of the document.
In order for the Bank to achieve sustainable growth, we believe it is necessary to further develop the Group's
strengths, actively make inorganic investments in addition to deepening existing businesses and taking on thechallenge of new businesses as a growth strategy, and utilize the Business Improvement Plan for future growth.
We also believe that the bottom line of these measures is to continue to create attractive, convenient, anduseful products, services, and customer experiences, using DX as a means of change.
We would like to grow while expanding the number of clients, expanding the gross profit margin of each andevery client, and moving the transactions themselves to digital, oriented toward lowering unit costs andfurther improving cost efficiency.
Please see page three of the document. Let me begin by explaining the strengths of the Chiba Bank Group.
We believe that the three greatest strengths of the Chiba Bank Group are its operating base, financial base,and alliances.
First, with regard to the operating base mentioned in the first section, we believe that our strength lies inmaintaining a strong business base and a high market share of loans in Chiba Prefecture, which has a large
economy with a population of 6.28 million and a gross prefectural product of JPY20 trillion, and in the stabilityof our business by capturing the demand for funds brought about by this economy.
In addition, both deposits and loans have grown faster than planned in the mid-term plan, and interest on
deposits and loans is expected to exceed the mid-term plan. In addition, as an effect of rising interest rates,interest on loans and deposits is expected to increase in the range of JPY3.4 billion to JPY26 billion in the final
year of the medium-term management plan, according to the interest rate rise simulation. This will be
explained later.

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We believe that we can continue to maintain a stable funding base, primarily from personal liquid deposits,
which will benefit from the growth in deposits and loans resulting from our branch strategy and the improved
customer experience provided by DX.
The second section shows our financial base: consolidated OHR in the 40% range, NPL ratio in the 0.9% range,
and consolidated CET1 ratio of 11.98%, excluding unrealized gains/losses on securities based on the December
B/S on a fully implemented Basel III finalization basis.
We aim to achieve OHR in the mid 40% range in the final year of the mid-term plan, and in the low 40% range
in FY2030 by improving the top line through DX and promoting cost reduction. Credit costs are also maintained
at a low level due to a strict risk management system and support for accompanying customers, mainly
through solution review meetings. Furthermore, with regard to the CET1 ratio, we believe that we are in aposition to utilize our capital for further growth strategies.
Finally, alliance, the third point, continues to be the Bank's biggest differentiation strategy and will be further
deepened in the future. I will explain these measures in detail.

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See page four. First, regarding the operating base. I will explain using figures as of the end of December. As
noted in the center, loans increased by more than JPY580 billion over the year, or 4.9% compared to the 3.8%
target of the medium-term plan.
Deposits below also increased by more than JPY420 billion during the year, up 2.8% versus the 2.2% target ofthe medium-term plan.
The second pie chart on the bottom left shows the composition of deposits. Of the Bank's JPY15 trillion indomestic deposits, JPY11 trillion are sticky individual deposits, of which approximately JPY9 trillion are liquid
deposits. We believe that this thick individual liquidity deposit will be a major advantage in a world withinterest rates.
By improving the customer experience through DX, we hope to further extend this advantage and strengthen
our stable procurement base.

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See page five. For us, a strong branch network is a weapon that differentiates us from other banks. In theprefecture, the Bank maintains a comprehensive branch network capable of handling corporate loans, and as
shown in the figure below center, the share of comprehensive branches in the prefecture has increased toapproximately 60%.
The Bank will further expand its share of loans and corporate service transactions by highlighting its strengths
in both online and brick-and-mortar customer contact.
As indicated by "New" in the figure on the right, the Mobara Area Sales Office was newly established in April,
becoming the third Area Sales Office following Tateyama and Togane. Outside of the prefecture, the Bank
plans to continue opening new branches in areas where sustained growth can be expected, and in addition to
the establishment of the Shinjuku West Corporate Banking Office in June, the Bank expanded its sales area toinclude all of Tokyo and neighboring prefectures.

4See page six. Area characteristics by operating base are shown based on RORA and OHR. The top left "regional
revitalization areas" have a high topline RORA but a high OHR, while the "growth areas in the prefecture" and"outside the prefecture" have a medium topline RORA but a low OHR and a high contribution to ROE.
The high topline RORA and low OHR show an inverse correlation. We will mitigate this by implementing
various measures in each area, and will continue to make improvements to achieve high RORA/low OHR ineach area.

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See page seven. Next, I will explain our financial base. The Bank maintains a low OHR, and we believe it
operates in a cost-effective manner. In addition, our low NPL ratio is the result of rigorous risk management,
including advanced entrance screening, as well as thorough support through solution study meetings, which
will be explained later.
Against the backdrop of such financial strength, we have been able to maintain an adequate capital adequacy
ratio of 11.98% on a B/S basis as of December 2023, which is the CET1 ratio on a Basel III finalization basis,
excluding unrealized gains/losses on securities.

6See page eight. Capital management and capital utilization will be explained.
First, regarding the current status of returns, as shown in the upper right-hand corner, we have increased thedividend by JPY4 for three consecutive years, and the total return ratio for the last fiscal year is expected to
be 54.1%. While the target range for the CET1 ratio is between 10.5% and 11.5%, the ratio based on the
December 2023 B/S is 11.98%, about 0.5 percentage points above the range.
In addition, based on simulations assuming that the Bank continues to post profits, build up risk-weighted
assets, increase its annual dividend by JPY4 per share, and repurchase JPY10 billion of its own shares, the CET1
ratio is expected to exceed 12% in the year ending March 31, 2029, when the Basel III finalization reforms are
fully implemented.
This surplus will be used to further build up risk-weighted assets, to build up intangible assets through further
strategic system investments, to invest in growth through inorganic investments, and to strengthen returns,
as shown on the lower left.

7See page nine. The third point is alliances. The Bank is deepening its three main alliances, the TSUBASA Alliance,
the Chiba-Musashino Alliance, and the Chiba-Yokohama Partnership, and is also working with Sony Bank onfour task forces for various collaborations. Furthermore, the TSUBASA/JUUDANKAI Joint Research Group has
been newly established.
The alliance strategy has led to the Bank's low OHR. The annual effect of the three alliances on the Bank's P/L
is approximately JPY6 billion in the top line and JPY2 billion in cost reduction, totaling approximately JPY8
billion. In the future, we hope to increase this to a level exceeding JPY10 billion per year.

8See page 10. As released in March, the TSUBASA/JUUDANKAI Joint Research Group was launched. The
research group will establish task forces in the three areas of systems, business efficiency, and cyber security
to promote joint research.
In addition, the right side of the page describes new initiatives in addition to the past efforts of the TSUBASA
Alliance. We intend to continue to deepen our efforts through a wide range of collaboration that is not limited
to systems, and we intend to share information on these efforts with the JUUDANKAI.

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See page 12. Next, I will explain our growth strategy. This has been included in the explanation so far, but I
would like to reiterate our strategy for growth.
This chart was presented at the financial results meeting last May. In order to increase PBR, we will provide asolid explanation of RORA improvements to increase ROE, non-financial disclosures to lower the cost of capital,and sustainable profit growth, including growth strategies and projected interest rate effects, as we are doing
this time.

10See page 13. This is a revision of the growth concept in the medium-term management plan that we presented
last year, taking into account our current efforts. We will firmly allocate human, material, and financial
resources to growth, refine existing businesses, and promote new initiatives in digital and new businesses.

11See page 14. We will strategically pursue initiatives to achieve consolidated net income of JPY100 billion and
ROE of 8% for the fiscal year ending March 31, 2031. Toward the bottom line of JPY75 billion planned in thecurrent mid-term plan, we will increase net income by JPY12 billion for existing businesses and by JPY3 billion
for new businesses and digital businesses. In addition, we will make strategic system investments andexpenditures totaling JPY20 billion over the three years of this medium-term management plan, and we willreap the benefits of these investments in the next medium-term management plan.
The impact on ROE of the current rise in interest rates is calculated under two scenarios. Under Scenario 2,
ROE is expected to increase by plus 1.58% in the second year and by plus 1.56% in the fifth year, so under this
scenario, 10% ROE is in sight for the fiscal year ending March 31, 2031. I will explain the impact of this interest
rate increase.

12See page 15. We ran two simulations: Scenario 1, in which the policy rate remains flat from the current level,
and Scenario 2, in which the rate rises one more notch. The detailed assumptions are as stated. Scenario 1
assumes that TIBOR is maintained immediately after the policy rate change, but TIBOR has already exceeded
this rate in the recent past, and market-linked lending is expected to increase beyond what is shown here.
In Scenario 2, the simulation was based on the assumption that the policy rate will be raised by 0.5% in
September of this year. Under Scenario 1, the simulation results show an increase in profit of JPY3.4 billion in
the final year of the medium-term management plan, and under Scenario 2, an increase in profit of JPY26
billion and a positive effect of 1.58% in ROE are expected.

13See page 16. In addition to providing attractive products and services, we believe that transforming thecustomer experience through DX is the most important way to enhance our corporate value and growth. As
noted in the upper left corner, by providing more convenient applications through DX, the number ofregistered app users is currently approximately 970,000 out of approximately 3 million active accounts, andthe penetration rate is 33%. The graph on the right shows the penetration rate for the total of approximately
4 million individual accounts.
Below is the percentage of transactions using the application. You can see that there has been a significant
shift to digital transactions over the past year. The axis of transactions has shifted significantly to digital, with36.1% for digital remittance transfers, 28.9% for opening an ordinary savings account, and 41.6% for opening
an investment trust account.
As noted at the bottom, especially for remittance transfers, the overall number of transfers and revenue
increased by 28% and 24%, respectively, compared to three years ago due to improved convenience, although
we have set lower fees for application transfers.
Approximately 60% of Chiba Prefecture residents hold accounts with us, and looking at active accounts, morethan 40% of the prefecture's residents are customers. We believe that our DX-ization is linked to the DXization of the people of the prefecture, and we will continue our DX-ization efforts under the slogan "DX for
the whole region."14See page 17. While the top line is increasing through DX-based transformation, we believe that further cost
reductions can be achieved through labor savings from digitization of transactions.
As shown in the chart on the right, the top line for individuals will increase by JPY6 billion from JPY37.9 billion
in the year ending March 31, 2023 to JPY43.9 billion in the final year of the medium-term plan, while thenumber of staff at sales branches will decrease by 179 from 2,186 to 2,007, which we believe will achieve
more efficient operations.
In the future, we will further transform the customer experience by utilizing data obtained from digitaltransactions and analyzing it through AI. By doing so, we hope to create a customer experience where thecustomer feels that "Just when I was interested, I got a OO from Chiba Bank." The OO could be words such as
sales office, call center, DM, e-mail, etc.

15See page 18. The upper row is an example of what is already being realized today. Using a variety of data, weare able to conduct e-mail marketing to customers based on predictions of their interests and needs, and tounderstand each and every customer who is highly interested in our products based on e-mail open status
and other information.
By sharing this marketing data, the staff can make timely approaches to interested customers. The phrase"Just when I was interested, I got a OO from Chiba Bank" is the actual response we have received from acustomer as a result of these efforts.
Through the use of data analysis and AI, Chiba Bank will provide in-person proposals and application
notifications in a timely manner when customers are interested in some product. By doing so, we hope to
improve the customer experience so that customers feel that Chiba Bank understands them well, and toincrease the number of fans of the Bank Group.
As a result of these efforts, we believe we can reap economic value in the form of increased cross-use, higher
productivity, and further improvement in gross business profit per employee.

16See page 19. This presentation will describe our efforts to increase the number of individual digital customers
as well as promote the use of our products and services.
Of the pyramid on the left, red indicates digital customers and gray indicates non-digital customers. The
approach will be to transition gray non-digital customers to red digital customers, and to use the dataobtained from transactions to increase customer resolution and transition customers from the bottom to the
top of the transaction category. Details will be explained in Part 2, DX Strategy.
The revenue shown in the lower right corner is planned to increase by JPY6 billion during the three-year periodof the medium-term management plan, aiming for JPY43.9 billion in the final year of the medium-term
management plan as the total of digital and non-digital revenue. As of now, when one year has passed, theincrease is JPY2 billion, as planned.

17See page 20. The diagram here illustrates the shift to digital customers and the promotion of product use witha specific example. Each sales representative is responsible for an average of approximately 700 customers.
Of these, we have set 200 customers as those with whom we will deeply explore their needs in person inorder to promote cross-use.
Our goal is to increase the resolution of our customers through data analysis, so that we can proactively
propose the services they need. For non-digital customers with whom we have less real contact, we willdevelop headquarters-led measures, as explained earlier on page 18.
The person in charge proactively manages interviewees and digital clients with a sense of management. By
making proposals tailored to each individual customer, the person aims to improve the gross profit per
customer and thereby improves the gross profit of the 700 customers he/she is in charge of as a whole.

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Next, I will explain our corporate business. See page 21. For corporate clients, as with individual clients, wewill seek to improve gross profit margins through a hybrid of digital and brick-and-mortar contact. By
increasing the set rate of the corporate portal and securing digital contacts, including non-financing clients,
we will shift the transaction category upward from non-financing to financing and increase overall gross profit.

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See page 22. Corporate solutions have been one of the Bank's growth drivers, with record profits for 12
consecutive fiscal years. As for financing, we are expanding our pipeline through alliances. The sustainablefinance business is growing significantly as a new business, with revenues from sustainable finance increasing
JPY400 million YoY as of Q3.

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I will discuss non-financing solutions. See page 23. Advisory services for businesses remained steady. ICT
consulting is also becoming more and more common, where rather than proposing a fixed system, the mostappropriate system is examined within a limited budget, starting with an IT diagnosis and other problem
identification, followed by support for operation and establishment of the system.

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See page 24. In M&A and business succession, the number of project stock continues to increase. We will
establish a new buyout fund that will own 100% of the target company's shares to provide full-scale handson support for growth, revitalization, and succession.

22See page 25. One of our strengths in controlling the NPL ratio is the provision of solutions through solution
review meetings. In addition, for advisory specified companies, which are selected as core companies in theregion, the Bank is considering business support through collaboration among sales branches, each sales
department, the examination department, and Group companies.

23See page 26. The cashless business refers to actual results for the fiscal year ending March 31, 2023. The
number of cardholders and member merchants has increased to over 900 thousand and 50 thousand,respectively, and transaction volume has grown steadily to approximately JPY750 billion per year. Details will
be explained in Part 2.

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Next, I will explain our new businesses. See page 27. The trial of the Metaverse new home showroom, shownin the center of the upper row, attracted more than 1,000 visitors during the period. We are currently studying
the possibility of full-scale development.
In the energy business on the bottom right, in addition to the Asahi Power Plant in December, we areconsidering several other projects, including a large company-owned project. In addition, the Bank started
the intermediation of feed-in tariff non-fossil certificate in March 2024.
To date, we have been involved in financing and investing in solar, biomass, and other renewable energyrelated projects equivalent to the electricity generated by approximately 550 thousand households in Chiba
Prefecture. Under the slogan "GX for the whole region," we hope to further contribute to the GX of the region.

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See page 28. Chibagin Market, a regional trading company, is promoting a home-buying concierge service
with a small start. In addition to email marketing, we are analyzing our database to identify needs andcustomers.
We are currently in the process of analyzing and approaching approximately 250,000 potential purchasers, as
shown in the upper right-hand corner. In March, some customers actually decided to purchase a home using
the concierge service as an entry point.

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See page 29. All branches began handling advertising business in October. In the advertising business, needs
have exceeded expectations since the start of proposals, and the utilization rate has been increasing every
month. We believe that it is quite possible to achieve the goal of JPY300 million in gross business profit for
the final year of the medium-term management plan.

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See page 30. With regard to real estate funds, we are considering a variety of projects while expanding ourpipeline to enhance the sophistication of our solutions. Currently, we have accumulated over JPY30 billion inprojects under consideration, including liquidation projects for branches and logistics warehouses.
With regard to the joint business plan with Google Cloud described on the right side, we will work on theadvancement of One-to-One marketing.

28See page 31. With regard to human capital, we have established a human resource development policy of"Become someone who keeps fighting for the customer." The three core elements are to "think things through,utilize your own strengths, and gain more supporters."

29See page 32. Centering on the human resource development policy, we are promoting various measures forthe following five areas: career development, job satisfaction, diverse organization, unified Groupmanagement, and human resource portfolio.
Various KPIs are progressing as described. As you can see on the lower right, we would like to improve
productivity per employee.

30See page 33. This presentation will focus on new initiatives. As noted in the upper right corner, a new
professional course was established this April for the promotion of professional personnel. In addition, atransfer system from Group companies was established this month to promote the revitalization of Group
companies.
As indicated in the lower right-hand corner, we have decided to implement an average wage increase of 5.6%,
including base salary increase. In addition to raising starting wages, we will improve compensation at all levelsof the Bank, such as improving the compensation of veterans, in order to increase engagement.

31See page 34. As shown in the upper right-hand corner, personnel hired as part of the unified group recruiting
system joined the Bank in April. In addition, the number of career hires in the previous fiscal year was 100,and we expect them to be active in their respective fields.
We plan to introduce the talent management system introduced at the Bank to the entire Group from thisfiscal year, and to develop a group-wide unified personnel policy, etc.

32See page 36. I would now like to explain the status of our actions based on the Business Improvement Plan.
Details will be explained at the second IR Day scheduled for April 24.
Based on the Business Improvement Plan formulated last August, we are encouraging management centeredon our Purpose and Vision. We have reviewed our FD policy and are working to disseminate it to ensure that
all officers and employees act in accordance with the Three Pledges.

33See page 37. With regard to business improvement, the first true cause of the problem was the problem of
the business management system, or the so-called incentive mechanism. The second was the issue of theinternal management system, i.e., the first-, second-, and third-line mechanisms. We believe that the third
true cause was a problem with the management control system, i.e., Group governance.
To address these issues, first and foremost, the Bank is working to permeate and thoroughly implement its
Purpose, Vision, etc., and then to strengthen its business operation system, internal control system, andmanagement control system.

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See page 38. Here you see the list of major measures. We are steadily advancing individual measures for thefour initiatives I have explained.

35See page 39. As a result of the various measures being implemented, the changes listed on the far right are
occurring as output. In terms of channel changes, non-personal sales rose from 22% to 54% as a result of therelease of an app investment trust, which had previously been under consideration.
The number of interviews has doubled as a result of the change to the activity volume target, and themeasures, although gradual, have led to solid sales results.
We believe that the way business is done is steadily changing in a tangible way. In addition, customer
satisfaction has been increasing in the NPS surveys that have been conducted, and employee engagement has
also shown the penetration of the Purpose and Vision.
Thus, positive changes are being seen as outputs. We believe that it is very important to take a firm approach
toward verification of the actual situation, as described in the middle section.

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See page 40. We are proceeding with both external investigations and internal verifications to ascertain theactual situation. The CX indicator in the upper left corner is a system for quantitatively measuring customer
CX, and is positioned as the most important indicator for verifying whether the number of fans of the Bank isincreasing.
As for NPS, we conduct monthly questionnaires for all customers who have traded financial products, and weare seeing an improving trend. On the right side, with regard to the Bank's internal evaluation, as part of ourefforts, we are thoroughly implementing initiatives to pick up the voices of employees in the workplaces, suchas through engagement surveys, compliance questionnaires, and whistle-blowing systems.
By analyzing the results of various surveys, such as engagement surveys, 360-degree assessments, andcompliance questionnaires, it is now possible to identify which workplaces have problems and which groups
in those workplaces are experiencing problems. This allows the Bank to take appropriate action in a timely
manner.

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Page 41, please. We are making progress in upgrading governance, and new initiatives are listed in the upper
right-hand corner. We will continue to enhance the level of governance centered on the Board of Directors.
Details will be explained again at the IR Day on April 24.
That is all for the overall explanation. I have explained today's theme, growth investments, such as inorganic
investments for growth strategies, on page eight. Specifically, we would like to proceed to work on several
projects during this first half of the year.
That is all for the explanation.

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