Integrated Report Main Parthttps://www.dbj.jp/en2021

Integrated Report 2021
Main partDevelopment Bank of Japan Inc.

Printed in Japan

Development Bank of Japan Inc.
Integrated Report 2021

Development Bank of Japan Inc.
Integrated Report 2021

1

MissionContents

Value
Creation Story

Continue to expand financial frontiers;
Provide the best solutions forcustomers and society;Pursue sustainable development
for Japan and the world.

Management Foundation Strategy

P 22 Sector Strategy
P 30	
Dialogue with Customers to

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P
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Realize a Sustainable Society

Reliability

Corporate
Governance•	Period: Fiscal 2020
(April 1, 2020–March 31, 2021)(Some information from outside thisperiod is also included.)•	International Integrated Reporting
Framework of the International
Integrated Reporting Council (IIRC)

Integrated Report 2021 contains­forward-looking statements.
­Forward-looking statements are basedon information available at the time ofwriting and hypotheses or judgments
regarding uncertain factors.
Accordingly, actual results may differ
materially if conditions change.

https://www.dbj.jp/en/
The latest news; detailed information on
DBJ’s financial services; case studies
regarding its investments and loans; various reports; and information for investors
can be found on the Company’s website.
Details about CSR initiatives are also
posted on the DBJ website.

P
P
P
P
P

62 Risk Management System
62 Comprehensive Risk Management
65 Stress Tests
65 Business Continuity Initiatives
66	
Response to the TCFD
Recommendations

Corporate
Data

P 68	
Financial and Non-Financial
Highlights

P 70 Consolidated Financial Summary
P 72 Timeline
P 73 Shareholder Information

P 73	
Summary of Changes to the DBJ
Act after Conversion to a JointStock Company

P 74 Organizational Structure
P 75	
Corporate Information /Group Companies

Corporate Data

Disclaimer

P 50 Message from the Chairman
P 52 Corporate GovernanceP 56	
Members of the Board of Directors,

P 60 Compliancestakeholders. The report’s content is decided upon by the Executive Committee.
Guidelines and Entities Referenced

Risk Managementof the Board of Directors

information to explain the DBJ Group’s business activities and initiatives in sustainable value creation to its broad spectrum of

Period Covered and ScopePFS and SIB that Solve Social
IssuesCorporate GovernanceP 59	
Messages from Outside Members

such communication with our stakeholders. Our latest Integrated Report 2021 is intended to provide financial and non-financial

42 Financial Strategy
44 Human Resource Development
46 Knowledge and Collaboration
49	
Taking the Initiatives to Spread

A presentation of the DBJ Group’s corporate governance and risk management
efforts toward the steady implementation of its strategies.

Audit & Supervisory Board
Members, and Executive Officers

Environmental Report for a Sustainable Society (published in fiscal 2003) was the DBJ Group’s first report dedicated to increasing•	Date of Publication:
October 2021

Business Strategy

P 32 Area Strategy
P 36 Function Strategy

Editorial Policy•	Guidance for Integrated Corporate
Disclosure and Company–Investor
Dialogues for Collaborative Value
CreationA presentation of the DBJ Group’s various sustainability management activities
from the perspectives of its business and management foundation strategies.

Corporate GovernancePublicmindedness

The realization of the DBJ Group’s mission can be traced to its four core corporate
values of “long-term perspective,” “impartiality,” “public-mindedness,” and “reliability,” which were created and passed down through the generations via thesharing and pursuit of DBJ’s corporate philosophy. Moreover, the core corporate
values underpin our business activities, representing a strength of the DBJ group.

•	Scope: In principle, the reportcovers DBJ and its 13 main
subsidiaries.

2 The DBJ Group’s Corporate Philosophy
4 Our History of Value Creation
8 Sustainability Management
10 Message from the President
15 Our Response to COVID-19
16 Fifth Medium-Term Management Plan
18 Key Initiatives toward Realizing Sustainability
20	Invigoration and Stabilization of Financial Markets through Partnerships andStrategy

Impartiality

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Collaboration

Strategy

A Long-term
Perspective

A presentation of the DBJ Group’s corporate philosophy from a historical perspective, along with an explanation of its management policies rooted in thisphilosophy.

Value Creation Story

Design the Future withFinancial Expertise2

Development Bank of Japan Inc.
Integrated Report 2021

Development Bank of Japan Inc.
Integrated Report 2021

The DBJ Group’s Corporate Philosophy

3

The DBJ Group’s Corporate Philosophy—Design the Future with Financial Expertise—

Design the Future with Financial Expertise

With due consideration paid to progress it has made thus far, projected changes in the business environment, andoutstanding social issues, the DBJ Group has formulated a mission to relentlessly pursue, core values to share,and its long-term vision, Vision 2030, to follow as a guide into the future.
In connection with these elements of its corporate philosophy, the DBJ Group has identified four core corporate
values—long-term perspective, impartiality, public-mindedness, and reliability—that also embody its strengths
and long-term vision, areas of differentiation.

Sharing Our Corporate Philosophy
Further propagating and applying our corporate philosophy will improve awareness ofour social responsibility, enhance the sense of unity in the DBJ Group,
lower communication costs, and motivate our employees to growwith intention and a sense of mission.

Our unwavering
purpose andour incessantdetermination toshape the future

MissionDesign the Future with Financial ExpertiseContinue to expand financial frontiers;
Provide the best solutions for customers and society;Pursue sustainable development for Japan and the world.

Vision 2030

Leveraging the DBJ Group’s
unique strengths topursue its mission andrealize its vision

Business strategy
Sector strategy
Function strategy
Area strategy

Capital strategy
Sustainability
management

Financial capital
Human capitalIntellectual capital
Relationship andsocial capital

Values put into
practice define ourstrengths

Execute strategy
based on values

Action Guideline

ValuesOur vision for2030, embodied in
our mission andstrategies

As industry and infrastructure professionals skilled in handling all types of risk,
we will play a unique role in the economy and society of 2030—leading new
business and market creation while responding to crises and other social needs.

Our strategy to reach our vision for 2030
Medium-Term Management Plan
The DBJ Group’s unique strengths assist with strategy execution
Core corporate values A long-term perspective, impartiality,
public-mindedness, and reliability
Our guidelines
for taking
specific actions
that express
our values

Responsibility to future generations• We fulfill our responsibility to the future by pursuing both
economic and social value.

The customer’s perspective• We devote unequaled thought to each possibility—from thecustomer’s point of view.

Outstanding service• We review and enhance our services while improving productivity.

Commitment and cooperation• We work tirelessly to broaden frontiers and achieve best results.
• We respect diversity and work together for greater shared value.

Our unwaveringvalues sharedby management
and employees(base component)

Initiative

Integrity

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Integrated Report 2021

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Our History of Value Creation

The DBJ Group has provided solutions in tune
with the times, contributed to the sustainable
development of society, and, while changing
itself, stayed true to its values—initiative andintegrity—amid dramatic changes in the economy, the fabric of society, and social issues.

Development Bank of Japan Inc.
Integrated Report 2021

Expansion and reinforcement ofindustrial bases

Redevelopment of major industries
Kawasaki Steel Corporation (currently JFE SteelCorporation):
Construction of Chiba Steelworks (Chiba Prefecture)
Modernization of steelmaking through construction of
the first postwar blast furnace

Development of innovative financial
products focused on sources ofcorporate value

Development of domestic
technologies

Nippon Yusen Kabushiki Kaisha:Liner Sanuki Maru
Rebuilding Japan’s merchant shipping fleet with financeunder the government’s shipbuilding programSony Corporation:
Trinitron color television factory
Promotion of homegrown technologies through thecommercial application of new technologies

Financial solutions that
support communities, the environment,
and technology

Our History of Value Creation

Vision 2030

Stronger response to innovation

PASMO Co., Ltd.:
Development of the PASMO IC card that transformed
public transport convenience
Note: PASMO is a registered trademark of PASMO Co., Ltd.

Japan H2 Mobility, LLC (JHyM):
Financial support for realization of a hydrogen-basedsociety

7

Space One Co., Ltd.
Support for development of the domestic space industry
by commercializing a new generation of small rockets

As industry and infrastructure professionals skilled in handling
all types of risk, we will play a unique role in the economy and society of2030—leading new business and market creation while responding tocrises and other social needs.

Future Changes in the External Environment
Collections of NYK Maritime Museum

Roles played by DBJ

Photo provided by ENEOS Corporation

1951

1956

2008

The Japan Development Bank establishedThe Hokkaido Development Finance Public Corporation established

Development Bank of Japan establishedEconomic recovery

Rapid growth

Reconstruction
and self-reliance of theeconomyAfter World War II, DBJ began toprovide financing for the rationalization, modernization and growthof key industries that would
become the foundation of economic and industrial development.

High-growth infrastructuredevelopment
Japan Development Bank (JDB)
expanded and reinforced theenergy and transportation capabilities underpinning its industrial
infrastructure, and provided loans
to develop and modernize chemical fiber, machine tool, automobile,and other new industries, whichsteered economic growth.

We have identified changes in the external environment that could have a major impact on the DBJ
Group’s stakeholders in the future. These sync with the United Nations Sustainable Development
Goals (SDGs) and we aim to contribute to realizing those goals.

Stable growth

Economic bubble

Post-bubble economy

Strengthening ofinternational
competitivenessImprovements toquality of life

Seamless transformationof industrial structure

Creation of anaffluent society

Aiming to enhance international
competitiveness in accordancewith the transition to an open economic system, JDB focused on
support for industrial system
improvements and the development of domestic technologies.

In the 1970s, JDB engaged in antipollution measures, regional andurban development, and othersocial development efforts
addressing quality of life andregional inequality issues in tune
with economic growth.

From the mid-1980s, pressing
needs arose for increased domestic demand and an industrial structural shift against a backgroundof aggravating trade friction withother countries. JDB focused on
support for social capital improvement, creative technologicaldevelopment, and industrial transformation and other issues.

JDB focused on ongoing improvements to social capital and environmental measures as areas ofpriority and the support of new
businesses (venture businesses). It
swiftly implemented reconstructionloans in the wake of the Great
Hanshin-Awaji Earthquake andloans to stabilize the financial
system.

2015

2020

Amendments to the Development Bank of Japan Inc. Act

The global financial crisis
The Great East Japan Earthquake

Structural reform

Regional revitalization

Business regeneration

Through a united effort with
regional financial institutions, JDB
focused on providing long-term
solutions to such issues as economic growth, the establishmentof social infrastructure, and development of a wide business network, toward enriching thelifestyles of local communities.

Amid issues concerning uncollectible loans arising from an increasing number of bankruptcies andunfavorable performances among
businesses as well as the instabilityof financial systems since the late
1990s, JDB invested in a businessrestructuring fund to support therecovery of businesses toward therevitalization of the Japanese
economy.

Financial crisis response,
post-earthquake
reconstruction
The financial crisis in 2008 triggereda deterioration of corporate cash
flows and DBJ swiftly addressed
the situation through Financial
Crisis Response Operations. In
regard to the Great East Japan
Earthquake in 2011, DBJ teamed
up with other financial institutions
to engage in Earthquake Disaster
Crisis Response Operations and toprovide risk capital through its
Great East Japan Earthquake
Reconstruction Fund.

The COVID-19
pandemic

Population
problems

Climate change,
natural resources,and energy

GlobalizationAI, fintech, andother technologicalinnovations

Government
budgets, finances,and regulations

Provision ofrisk capital
DBJ established its Special
Investment Operations to provide
the growth capital needed to promote the competitiveness ofJapanese enterprises and regional
revitalization. Moreover, DBJ supported new businesses with theircommercialization efforts and contributions to society by engaging in
projects with diverse players overthe long term.

https://www.dbj.jp/en/co/info/history/

Realizing a sustainable society
Our Three Priority Areas
The DBJ Group has established infrastructure, industry, and the regions as its three priority areas
based on the roles it has played and the functions it has undertaken to date, the social value it hasrealized, and future changes in the external environment. Leveraging its professional strengths, theGroup is assessing long-term changes in the external environment to provide creative solutions to
issues confronting clients in infrastructure, industry, and the regions and thereby play a part in creating a sustainable society.

Please refer to DBJ’s website for more details on our history and timeline.

Promotion of antipollution measures
Toyo Soda Manufacturing Co., Ltd.
(currently Tosoh Corporation): Conversion of manufacturing method for caustic soda (Yamaguchi Prefecture)
Promotion of conversion to non-polluting manufacturingmethod for chemical industry

Demonstration of safety net function(Reconstruction from theGreat Hanshin-Awaji Earthquake)
Hankyu Corporation: Earthquake reconstruction work
(Hyogo Prefecture)
Recovery work on traffic infrastructure damaged by theearthquake

Response to
the 2008 Global Financial Crisis

Great East Japan Earthquake disasterand crisis response

Crisis response to impact of
COVID-19

The financial crisis in the autumn of 2008 precipitateda global financial crisis. As this situation impaired thefunctioning of the bond markets, corporate cash flows
worsened. DBJ responded promptly with Financial Crisis
Response Operations.

Joban Kosan Co., Ltd.:
Spa Resort Hawaiians (Fukushima Prefecture)
Support for a theme park that became a symbol ofreconstruction after the Great East Japan Earthquake

Through the designation of the COVID-19 pandemic asa crisis by the Japanese government, DBJ, as a designated financial institution, responded to the issues surrounding COVID-19 by conducting Crisis Response
Operations in a timely and optimal manner through thecooperation of private financial institutions.

Rebuilding andReinforcement ofInfrastructure

Creation, Conversion,and Growth in Industry

Self-Reliance andRevitalization of
Local Economies

Rebuilding of energy systems, more advanced transportation networks, creationof attractive communities

Commercialization of newtechnologies, businessrestructuring to improve­productivity and hone competitiveness, business development in global markets

Industrial revitalization basedon regional characteristics,
overseas business development, response to inboundtourism, business succession

Rebuild energy andtransportation infrastructure,
upgrade public infrastructure
Promote urban growth

New technologies and businesses(promote innovation)
Reorganization
Overseas expansion

Solve issues specific to each region
Play a role connecting regions toTokyo, regions to regions,and regions to the world

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Development Bank of Japan Inc.
Integrated Report 2021

Sustainability Management

Sustainability Management

9

Value Creation Process

Value Creation Process

MissionVision 2030

Value Creation Story

As a leader in sustainability management, the DBJ Group seeks to promote sustainable development in Japan andworldwide by offering solutions to issues facing clients and society as a whole.
The sustainability management targeted by the DBJ Group consists of a business model that leverages Group capabilities in fields including integrated investments and loans and consulting and advisory services. Our business model isdesigned to raise economic and social value simultaneously in the pursuit of a sustainable society. We work constantly
to improve our value creation process through collaboration and dialogue with stakeholders, seeking to refine our sustainability management and enhance the value we create.

Our Three Priority Areas
Rebuilding and Reinforcementof Infrastructure

Creation, Conversion, and
Growth in Industry
Commercialization of new technologies,
business restructuring to improve productivity and hone competitiveness, businessdevelopment in global markets

Industrial revitalization based on regional
characteristics, overseas business development, response to inbound tourism, business succession

Solving Challenges in Priority Areas through Sustainability Management
For customers in priority areas (infrastructure, industry, and the regions, which were decided inview of DBJ’s functions to date and opinions received from stakeholders), the DBJ Group provides
integrated investments and loans commensurate with risk appetite along with consulting and advisory services. For our investor clients, we offer syndication and asset management services. As
financial professionals offering creative solutions for the different issues faced by its customers,
DBJ contributes to the creation of a sustainable society aligned with the SDGs.

Strategy

Rebuilding of energy systems, moreadvanced transportation networks, creationof attractive communities

Self-Reliance and Revitalization of
Local Economies

Sustainability Management
Integrated Investment and Loan
Services That Contribute to
Resolving Social and Client Issues

The DBJ Group’s Management
Capital Communication

Economic
Value
Creation

Corporate GovernanceOutcome of business activities

Risk Capital Finance

Financial CapitalSocialValue
Creation

Creation of Diverse Financial
Deal Opportunities

Balancing Economic and Social Value

Human CapitalBusiness
activities in tune
with risk
appetite

Increase andconversion ofcapital valueIntellectual
CapitalCrisis Response Operations• Financing• Investment• Consulting and advisory• Asset management• Special Investment Operations

Investment of management resources

The DBJ Group works to promote industries and initiatives withthe potential to serve as pillars for Japan’s economy and society. We offer up solutions for current issues affecting industries
and our customers and examine hypothetical and envisioned
changes to both groups amid the rapid changes occurring in
our society.
As mandated under the DBJ Act, we also rapidly and accurately undertake Crisis Response Operations as required byevents such as major natural disasters and financial market
instability. We contribute to the sustained growth of society

through Group measures to create new industries and support
while responding to crisis events, always taking the needs ofour customers and the community into consideration.
Implementing the DBJ Group’s business model requires
unique resources. While sound financial capital is a vital support, we also strive for the integrated expansion of financial andnonfinancial capital, using clear definitions for the human capital, intellectual capital, and relationship and social capital that
impact on our financial value creation in the long term.

• Crisis Response Operations

Corporate Governance and Risk Management
Advisory Board
Special Investment Operations Monitoring
Board

Long-running, continuous collaborationand dialogue

Communication with Stakeholders

Customers

Communities

Employees

Financial institutions

Investors

Shareholders etc.

Building a Foundation for Sustainability Management throughCommunication with Stakeholders
Communication with our stakeholders helps us continuously
improve our sustainability management, our unique value creation process. As part of this process, the Advisory Board, anadvisory body to the Board of Directors, and the Special
Investment Operations Monitoring Board, receive third-party
advice from outside experts and outside members of the Boardof Directors. Through communication in its daily operations
with stakeholders, including customers, regions, financial institutions, investors, and shareholders, the DBJ Group reaffirms
its functions and examines how those functions should evolvein the years to come.

Corporate Data

Relationship andSocial Capital

Sustainability
Management for Both
Economic andSocial Value

Provision of Our Knowledge

10Development Bank of Japan Inc.
Integrated Report 2021

Development Bank of Japan Inc.
Integrated Report 2021

Message from the President

11

Message from the President

Value Creation Story

In tune with the changing needs ofsociety and our customers, the DBJ Grouphelps realize a sustainable society by promoting
sustainability management while balancing
economic and social value.

Strategy

Hajime Watanabe
President and CEO
Development Bank of Japan Inc.

Corporate Governance

Our Response to the COVID-19 Crisis¥103.9 billion in financing to 64 cases. At the request of thegovernment, we set up a special team in March 2021 tostrengthen time-limited and concentrated support for businesses severely impacted by the ongoing pandemic, such as
those in the hospitality sector. Through these and other measures, we are focusing on rapidly and properly implementing
Crisis Response Operations while collaborating and coordinating with private financial institutions to address the needs ofcustomers adversely affected by COVID-19.
In Special Investment Operations, we created the GrowthFund for Coronavirus Revival in May 2020 with the aim ofbacking our customers’ initiatives to develop new businesses
and collaborate across different industries in order to recoverand grow from the impact of COVID-19.

The Role of the DBJ Group and Our Achievements to Date
Since the days of its predecessors, Japan Development Bankand Hokkaido-Tohoku Development Finance Public
Corporation, the DBJ Group has worked to promote Japan’ssustainable development. We have achieved this by responding flexibly to the issues of the day, through the periods of
postwar reconstruction, high and stable growth, and the

bubble economy and its collapse. In more recent years, wehave addressed the declining birth rate and aging population,and become a leader in the areas of globalization and growing
environmental and disaster awareness. The past decade alone
has seen dramatic change in the wake of the global financial
crisis and such major events as the Great East Japan

Earthquake. Against this backdrop, the DBJ Group has developed new initiatives to address social expectations with an eye
on the future, and the Group itself has undergone majorchanges. We have achieved this by responding flexibly to theissues of the day—for example, through the periods of postwar
reconstruction, high and stable growth, and the bubble economy and its collapse. In more recent years, we have addressed
the declining birth rate and aging population and become aleader in the areas of globalization and growing environmental
and disaster awareness.
Specifically, the DBJ Group has firmly established a unique,integrated investment- and loan-based business modelthrough the development of Crisis Response Operations tocope with extraordinary events such as earthquakes and global
financial crises, and through measures to enhance the supplyof risk capital for subsequent growth.

As we deal with the unprecedented, long-term impact of
COVID-19, the future is sure to present further changes andchallenges. While monitoring initiatives across all industries on
the path to carbon neutrality by 2050, a global movement, andin keeping with our unwavering mission, we will take a flexible
approach to issues faced by regions and our customers as awhole, staying true to our core values and being mindful of ouraction guidelines.
Our Mission: Design the future with financial expertise
Our Action Guidelines:• Responsibility to future generations• The customer’s perspective• Outstanding service• Commitment and cooperation
Our Values: Initiative and Integrity

Vision 2030 and Priority Areas
In 2015, with the aim of shaping our business vision around alonger-term outlook, we gave fresh thought to the role of DBJ
in the years leading up to 2030. In the course of our debate,
we identified a number of changes in the external environment
with a significant impact on our stakeholders: Japan’s declining

population and its climate and energy issues in the context ofthe global effort to build a sustainable society; intensifying
global competition; and innovations in digital technologies suchas AI and fintech. Based on the roles we have undertaken andthe value we have realized over this time, we determined the

Corporate Data

COVID-19, having become a pandemic since its outbreak in
December 2019, has had an enormous impact on economic
activity in Japan, constricting the travel of people inside Japanand around the world. In response to the unprecedented crisis,
the DBJ Group is leveraging the experience it has gained
responding to other crises, such as the global financial crisisand the Great East Japan Earthquake. DBJ set up a consulting
service desk in January 2020. Then in March 2020, theJapanese government declared the COVID-19 pandemic acrisis. As a designated financial institution, the DBJ Group concentrated all of its energy on rapidly and appropriately implementing Crisis Response Operations.
As of March 31, 2021, we have already extended 345 Crisis
Response Operations worth ¥2,231.8 billion and, through theRegional Emergency Response Program, provided a total of12

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Integrated Report 2021

Development Bank of Japan Inc.
Integrated Report 2021

Message from the President

and our customers in industry and infrastructure, steadily
implementing each initiative while respecting the views of
stakeholders. We will take the lead in business and market creation by leveraging our ability to properly evaluate and addressa broad range of risks. At the same time, as we respond to the
COVID-19 crisis, take steps toward carbon neutrality and lookforward to 2030, we will fulfill our unique role in the economy
and society by taking action during times of crisis and otherwise responding to social demand.

Message from the President

Business Profit and Loss (Consolidated)(¥ billion)

FY2019FY2020YoY change

Gross ordinary income

164.3

164.1

(0.1)

Loans

76.6

91.7

15.0

Investment

68.2

47.0

(21.2)

19.3

25.3

5.9

Operating expenses

Fee and commission income(57.1)(56.7)

0.4

Net ordinary income

107.1

107.3

0.2

4.0

0.7

(3.3)

(28.1)(34.2)(6.1)

Other extraordinary items

Sustainability Management at the DBJ Group

Loans

4.5

(24.9)(29.5)(32.7)

(9.3)

23.3

Income before income taxes and minority interests

83.0

73.8

(9.2)

Total income taxes(31.5)(26.9)

4.5

Current net income

51.5

46.8

(4.7)

Net income attributable to non-controlling interests

1.0

1.5

0.5

Net income attributable to owners of the parent

50.4

45.2

(5.2)

Investment

Note: Business categories are those used in business management.

as a rallying cry, the DBJ Group will serve as a nodal point andcatalyst across industries, customers, and generations.
The third aspect to note is the GRIT Strategy (see page 17),concrete initiatives created by the Group to enable it to fulfill

the abovementioned role. With the realization of a sustainable
society as our ultimate goal, we will collaborate with customers
and all other stakeholders on Green, Resilience & Recovery,
Innovation, and Transition & Transformation initiatives.

Fiscal 2020 Results
In its results for fiscal 2020, DBJ generated net income of¥45.2 billion, a decline of 10% from the previous fiscal year,
due to owing to an increase in valuation allowance in light of
the COVID-19 pandemic. We will continue to focus Crisis

Response Operations on issues related to the pandemic, while
also helping our customers rebuild their finances and takemeasures to recover and grow from the pandemic.

The DBJ Group has drawn up and implemented four mediumterm management plans since it became a joint-stock company. While enhancing operations for supplying risk capital,
DBJ is working to expand financial services that integrate
investments and loans for customers in industrial fields andthree infrastructure fields: energy, transportation, and urban
development. In tandem with this effort, we are increasing thesophistication of our risk management capabilities.
With dramatic changes underway around the world amid
increasing uncertainty due to the pandemic, DBJ drew up its
Fifth Medium-Term Management Plan while backcasting fromits long-term vision, Vision 2030. The Bank is also taking heedof four major social issues that are having a significant impact
on economies and communities worldwide: the advancementof digitalization, the decline of working-age populations, internationalization, and sustainability. The idea of capitalism isbeing tested more than ever before by this pandemic. As social

issues become inseparable from the business challenges facedby our customers, we must work to solve issues from the customer’s perspective. With this in mind, we unveiled our Fifth
Medium-Term Management Plan for fiscal 2021 onward.
There are three key aspects to note in the Fifth MediumTerm Management Plan.
The first is that the most important tenet of the plan centerson the DBJ Group’s corporate philosophy: the balancing of
economic and social value.
As the second aspect, due to the pandemic the Group recognizes the need to accelerate its initiatives for digitalizationand sustainability given the global movement to becomecarbon neutral by 2050, a crucial milestone on the path to realizing a sustainability society. To advance these programs, wemust collaborate more with our customers and private-sector
financial institutions, as collaboration across sectors has
become even more important than before. With “connections”

Special Investment Operations
The DBJ Group’s Special Investment Operations are conducted as mandated in revisions made in 2015 to theDevelopment Bank of Japan Inc. Act. Utilizing our experiencein supplying risk capital, through these operations we haveextended ¥931.5 billion in investments and loans to a total of
132 projects as of March 31, 2021. A total of ¥5,714 billion in
private-sector investments and loans have been triggered by
DBJ’s investments and loans worth ¥893.2 billion. The DBJ
Group will continue to supply growth capital in collaboration
with private financial institutions. The Group also has an extensive track record in regional revitalization projects and is keen
to engage in future initiatives with local financial institutions willing to help create distinctive regional communities.

In May 2020, DBJ established the Growth Fund forCoronavirus Revival to help customers recover and grow fromthe COVID-19 pandemic. In February 2021, DBJ created theGreen Investment Fund to strongly support initiatives that help
realize a greener society. In March of the same year, we also
set up the DBJ Innovation and Life Sciences Fund for the purpose of supporting innovation and sharpening competitivenessin the life sciences industry. At meetings of the Special
Investment Operations Monitoring Board, which convenes
twice a year, the opinions of stakeholders are taken into consideration when conducting operations.

 evelopment of Human Resources Focused on Best Practices inD
Sustainability Management
Sustainability management, a key to the DBJ Group’s value
creation process, relies above all on personnel who share thecore values of initiative and integrity and who display the four
elements of our core corporate values in the pursuit of balancing economic and social value. Officers and employees of the

DBJ Group have inherited the core corporate values of longterm perspective, impartiality, public mindedness, and reliability,
which have evolved over the years in the course of our business. Bolstered by these corporate values, the Group has consistently risen to meet the challenges of the times. We always

Corporate Data

Fifth Medium-Term Management Plan

Corporate Governancecapital to deal with related issues, the DBJ Group will take thelead in creating industries and initiatives that can serve as pillars of Japan’s economy and society in the years to come. At
the same time, Crisis Response Operations will play an important role, undertaken with flexibility and precision as required byevents such as major disasters and instability in financial markets.
As we move ahead with these services, we are also honing
our strengths in relationship capital (as exemplified by robust
networks in industry, government, and academia), sound financial capital, and human capital sharing a common set of corevalues. We believe in the importance of constantly improving
our sustainability management processes through dialogue
with external stakeholders, centering on the Advisory Boardand the Special Investment Operations Monitoring Board of DBJ.

Strategy

The DBJ Group practices sustainability management as a meansof creating value with a focus on three priority areas. By sustainability management, we mean working to create economic
and social value by providing the solutions needed to create
new industries and value through innovation, by responding
during times of crisis, and by making other contributions
toward the building of a sustainable society, all while being
guided by the needs of our customers and society as a whole.
To this end, we must accurately understand the current
issues affecting industries and our customers, in addition tolonger-term trends and issues in society and the impact they
may have on our customers and specific sectors. Leveraging
our knowledge to produce future visions through research andanalysis, and sharing these visions with customers and regional
communities while offering financial solutions such as risk

Gains on reversal of reserves, depreciation, etc.,
of written-off claims

Value Creation Story

best areas in which to use our strengths over the longer termin the interests of a sustainable society. Vision 2030 was theresult. Drawn up in 2017, this long-term vision sets infrastructure, industry, and regional economies as the three priority
areas (materialities) for the DBJ Group’s initiatives. Our contributions in these areas will be consistent with the Group’s
course so far, and we believe they will be in line with what society and stakeholders expect from us in the future.
To fulfill our mission, we will work as financial professionals
to enhance the added value provided to regional communities



13

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Development Bank of Japan Inc.
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Development Bank of Japan Inc.
Integrated Report 2021

15

Our Response to COVID-19

Message from the President

Implementation of Crisis Response Operations
Operations as a designated financial institution. DBJ will continue to collaborate and coordinate with private financial institutions to meet the needs of businesses that have been adversely
affected by the COVID-19 outbreak. DBJ will enhance collaboration with regional financial institutions and ready its uniquecapital supply systems, including the Regional Emergency
Response Program, while considering the nature of this crisisin terms of securing jobs and maintaining credit.

Value Creation Story

In response to the damage caused by the COVID-19 outbreak,the DBJ Group opened consulting service counters at the endof January 2020 and moved forward with its unique Regional
Emergency Response Program in February. On March 19, asa designated financial institution, DBJ concentrated on Crisis
Response Operations once the Japanese government designated the COVID-19 pandemic a crisis.
Led by the Coronavirus Response Headquarters, DBJ has
moved to rapidly and precisely implement Crisis ResponseState of Initiatives for Crisis Response Operations
2020

Timeline

Improving Collaboration with Stakeholders
in more efforts to contribute to SDGs, a global agenda for2030. On financial markets, interest in the flow of funds is
growing from an ESG perspective. To date, the DBJ Grouphas, through its certification programs and other means,advanced initiatives toward a sustainable society by proactively
evaluating intangible assets not shown on the financial statements based on dialogues with customers. Engaging in dialogue with stakeholders will remain a crucial endeavor as we
continue to fulfill our mission as a front-runner in sustainability
management. It is our sincere hope that this integrated reportwill lead to greater dialogue with all of our stakeholders.

Established Coronavirus Response Headquarters (headed by President and CEO
Hajime Watanabe)

March:Started Crisis Response Operations upon the Japanese government’s declaration ofa state of ­emergency over this crisis

April:First supplementary budget passed by government

May:

Growth Fund for Coronavirus Revival established

June:

Second supplementary budget passed by government

January:

Third supplementary budget passed by government

March:DBJ increased support for restaurant and hotel businesses

Agreements with Regional Financial Institutions
to Coordinate Disaster Response Operations*1• Cooperative agreements signed with approximately 70 regional financial institutions
with objective of appropriately responding to this crisis and contributing to regional
economic development

Status of Crisis Response Operations*1• Crisis Response Operations (total): 345 loans, ¥2,231.8 billion• Regional Emergency Response Program loans (total): 64 loans, ¥103.9 billion

Breakdown of Financing by Sector*1

Breakdown of Financing by Office Type*1

Amount (%)

Amount (billions of yen)

12%
7%
9%

Number (%)
14%

16%
20%

7%
24%

23%

36%
6%

26%

Transportationequipment
Other manufacturing
Transportation
Wholesale
Tourism*2
Othernon-manufacturing

Branches¥401.6 billion

Number (%)
Branches

Head Office

230

179

Head office
Branches

17%
83%

56%

44%

Head Office¥1,934.2 billion*1 As of March 31, 2021
*2 Total for hotels, retailers, and restaurants
Corporate Data

The situation around the world and in Japan, including theimpact of the pandemic, looks increasingly uncertain as majorchanges continue to occur. Over the next decade in particular,
given the aging and declining population in Japan, we expect
the advancement of digitalization to accelerate after the pandemic ends, resulting in sweeping changes in the economy andsociety as initiatives across industries for achieving carbon
neutrality by 2050 gain momentum. We also expect to see theintensification of global competition, new collaborations andcooperation across sectors and companies in the business
community, changes in business models, and the emergenceof new ecosystems. Based on its Fifth Medium-Term
Management Plan, the DBJ Group will continue to supply risk
capital through integrated investments and loans with theintention of leading the way toward a sustainable society in the
future, while taking on challenges for new initiatives together
with its customers.
Furthermore, DBJ will continue with efforts to build a moresustainable society in line with this global movement. Recently,
the public and private sectors have come together to engage

2021

March:

Corporate Governancetelecommuting and a flex-time work system, and we aim toenhance our paid parental and caregiving leave programs.
As part of our response to COVID-19, we are encouraging
employees to take a flexible approach to working at home orcoming to work on staggered schedules, because the healthand safety of our executives and employees are of paramountimportance. We are also making every effort to update our systems so that Crisis Response Operations can be smoothly
implemented.

Opened consulting service counters
Added this crisis to its unique Regional Emergency Response Program

Strategy

strive to enhance our skills in corporate and project assessment. Our know-how, capability, and developed networks reinforce the DBJ Group’s core asset of expertise in long-term
screening and assessment based on a comprehensive viewof regional and current issues.
The employees embodying the Group’s values should be
able to pursue their activities creatively and in good health, andwe are promoting workstyle reforms for this purpose. To bringmore flexibility to working patterns, we have introduced

January:
February:

Increase in Support for Restaurants and Hotels
Well over a year into the pandemic, the business environment
became even more difficult for companies operating restaurants and hotels, which have been major employers. At theirrequest, the government stepped in to provide further assistance to these companies.

In response to this request, to offer more support to companies operating restaurants and hotels during these trying times,
DBJ is implementing the following measures while fully utilizing
Crisis Response Operations as a temporary scheme while thepandemic lasts.

President and CEO
August 2021
(1) Set up the Crisis Response Operations Special Response Office andestablish the Restaurants and Hotels Team therein(2) A ccelerate the screening of companies operating restaurants and hotels(4) Reduce interest rate burdens by adjusting interest rates of subordinatedcapital loans provided to mid-tier companies and large enterprises in therestaurants and hotels sector(3) P rovide support unique to DBJ by temporarily suspending private sector
collaborative financing rules in Crisis Response Operations(5) Establish a preferred stock underwriting fund targeting companies operating restaurants and hotels

https://www.dbj.jp/topics/dbj_news/2020/html/20210331_203199.html
Please refer to the DBJ website for more information about assistance for restaurant and hotel companies (Japanese only).

16

Development Bank of Japan Inc.
Integrated Report 2021

Development Bank of Japan Inc.
Integrated Report 2021

Fifth Medium-Term Management Plan:

17

Fifth Medium-Term Management Plan: Innovation for Sustainability

Innovation for Sustainability

Response to drastic changes in the economy and society
financial institutions, the DBJ Group utilizes risk capital and its
knowledge to help customers solve their issues and thereby
contribute to sustainable growth. Against this backdrop, we
formulated as an action plan our Fifth Medium-Term
Management Plan: Innovation for Sustainability. Due to the still
unpredictable impact the COVID-19 pandemic will have on theeconomy and society, the plan spans five years, longer than
the three-year periods of previous plans.

Achievement of Goals with Customers

EnergyUrban
development

Transportation

New fields

G

Green

Connect industries
Draw out the potential of industries

Connect generations
Pass on a strong, resilient society to future generations

Areas

R

Resilience &RecoverySupport new regional development

T

Transition /Transformation

Knowledge creation

In line with its long-term vision, the DBJ Group devised the
GRIT Strategy as a core action for 2030, with the aim ofcontributing to the realization of a sustainable society by
2050 through the advancement of initiatives to marshal
resources. While starting with the specific needs of customers, the GRIT Strategy aims to build industry foundations aswell as resilient, safe and worry-free regions andSupport with integrated
investments and loans

GRIT Strategy

Monitor industries and regions and provide information

Intellectual capital
Reform work approaches
Shift to workstyles adapted
to changes in businessenvironment

communities, along with the realization of a green society.
Toward this goal, the DBJ Group is engaged in initiatives atinnovations that can be commercialized and objectively
assessed, as well as strategic initiatives for the transition to asustainable society on the basis of current business base.
To advance the GRIT Strategy, DBJ set up the 2050 Growth
Strategy Headquarters, directly led by the President.

Vision 2030

Realization of sustainability

Priority areas (materialities)
Infrastructure

Industry

G

R

Resilience &Recovery

Green

I

Innovation

Green

2030

Initiatives to become carbon neutral with established technologies

Relationship capital
Deepen collaboration andcooperation

Resilience & Recovery
Initiatives that support the construction of a flexible, strong, safe, and secure regional, social,and industrial infrastructurePublic–private collaborationand partnerships

T

Transition /Transformation

Financial Targets

2020

DBJ plans to disclose financial targets for fiscal 2025 after revising them in May 2023.

Fiscal 2025
targets(consolidated)

2050 Growth Strategy Headquarters

Profitability

Financial soundness

Gross ordinary
income*1
About ¥200
billion

Net income attributableto owners of the parent

Cost ratio*2

Total assets

ROA*2

ROE*2

Capital adequacy ratio*3

About ¥85 billion

About 32%

About ¥21
trillion

About 1%

About 3%

About 14%

*1 Excludes credit costs*2 Cost ratio and ROA versus gross ordinary income. ROE versus net income*3 Common equity Tier 1 risk-weighted capital ratio (Fifth Medium-Term Management Plan estimates on a finalized Basel III basis)

2050

Regions(Promotion of GRIT Strategy)

https://www.dbj.jp/en/co/info/plan.html
Please refer to the DBJ website for more information about the Fifth Medium-Term Management Plan.

Innovation
Initiatives for innovations that are commercially
feasible from a long-term perspective

Transition / Transformation
Strategic initiatives to steadily lead transition
toward carbon neutrality and other goals, basedon current business foundation

Corporate Data

Outcomes of business activities

Collaboration and cooperation

Knowledge

G R I T Strategy

Growth of employees
supports growth oforganizations

Innovation

Reinforce platforms for supplying risk capitalImprove the managementof risks and returns
Increase sophistication ofcapital procurement
methods

Human capital
Train personnel for

Functions

Value creation

Financial capital

Non-financial capital

I

Connect regions

Managementfoundation strategy

Corporate GovernanceInput of management resources

GRIT Strategy

Industrial fields

catalysts that facilitate the taking on of new challenges
above and beyond the borders defining sectors andcorporations.
The DBJ Group will take on these challenges without fearing change itself, using change near at hand as a catalyst.

Crisis Preparation

Business Strategy

Infrastructure fields

Responding to changes in society caused by D.A.I.S.
requires efforts that exceed traditional concepts, and in thisregard it is important to collaborate and cooperate with customers and private-sector financial institutions. The DBJ
Group aims to create value with its stakeholders by advancing initiatives to bring them together through nodes andStrategy

Balance with Social Value

Sectorrepresents sustainability (contribution to a green and sustainable society).
The pandemic has accelerated the changes toward theabovementioned digitalization and sustainability megatrends,
which are also business issues faced by our customers.

Connecting industries, regions, and generations to create value

Response to drastic changes in the economy and society

Changes for the Future

The DBJ Group uses D.A.I.S. to refer to four megatrends
impacting the Japanese economy and society. “D” stands
for digitalization (digital transformation of business), “A”
means aging (the contraction in the working-age population
due to a declining birth rate and aging), “I” stands for internationalization (overseas business development), and “S”

Value Creation Story

Since becoming a joint-stock company in 2008, the DBJ
Group has implemented Medium-Term Management Plans
with the objectives of increasing the supply of risk capital for
integrated investments and loans and of advancing risk management functions.
Recently, sweeping changes have occurred in demographics and social structures, and social issues have become
inseparable from the business challenges faced by our customers. While collaborating and cooperating with private

18

Development Bank of Japan Inc.
Integrated Report 2021

Development Bank of Japan Inc.
Integrated Report 2021

Key Initiatives toward Realizing SustainabilityAt the DBJ Group, we engage in a variety of initiatives aimed at realizing a sustainable society through a business model
built upon features such as integrated investments and loans and consulting and advisory services.

19

Key Initiatives toward Realizing Sustainability

Increasing Visibility on Social Values: DBJ SDGs Mapping

Achievements in Fiscal 2020

Policy on Sustainability

Scope: Fiscal 2020 investments and loans
Total amount: ¥5,786.7 trillion
Calculation method: The following process was used by
all DBJ employees.

To realize its mission of pursuing sustainable development for Japan and the world, the DBJ Group strives to achieve both economic
and social value through its unique business activities by embracing sustainability management. In 2017, we formulated our Policy
on Sustainability as a part of our efforts to continue to proactively engage in dialogue with all stakeholders and to enhance our value
creation process.
The DBJ Group’s main initiatives based on this policy are outlined below.

STEP 1 Select up to two SDGs categories for each person in

charge to contribute to
STEP 2 Check fairness of mapping (reviewed by a special
STEP 3 Express monetary amounts (verified twice) in five stages

https://www.dbj.jp/en/sustainability/management/regular.html
Please refer to the DBJ website for details on our Policy on Sustainability.

More than ¥2.0 trillion ¥1.5–¥2.0 trillion ¥1.0–¥1.5 trillion ¥0.5–¥1.0 trillion Less than ¥0.5 trillion 

Main Initiatives
DBJ will advance initiatives from the customer’s perspective based on its GRIT Strategy under theFifth Medium-Term Management Plan to realize a sustainable society.

See page 16

Renewable Energy Measures

With the aim of promoting the use of renewable energy, DBJ has engaged in solar and wind power
generation projects in Japan since their implementation and participated in advanced case studies
overseas.

See page 23

Signatory to Poseidon
Principles

DBJ has become a signatory to the Poseidon Principles, a commitment to help address climatechange in the marine transportation industry from a financial perspective.

See page 25* Crisis countermeasure loans in fiscal 2020 (¥2,229.3 billion) are counted as
initiatives that contribute to “SDG9: Industry, Innovation and Infrastructure” andtreated as outlying figures

Comments from experts on SDGs Mapping

Established in 2011, DBJ Green Building Certification recognizes buildings with exceptional consideration for society and the environment and provides support to those who own and operate such
real estate.

See page 26

Creation of DBJ Sustainability
Certification Programs and
DBJ Sustainability Linked
Loans with Engagement
Dialogue

DBJ supports the efforts of its customers on the environmental, disaster prevention, and healthmanagement fronts through a menu of investments and loans that take into account the non-financial information of companies through its proprietary screening system. Moreover, it created DBJ
Sustainability Linked Loans with Engagement Dialogue as a way to improve the visibility of customer initiatives on sustainability through dialogue.

See page 30

Issuance of Sustainability
Bonds

DBJ became the first issuer of green bonds in Japan (2014) and has also been issuing sustainability bonds each year since 2015.

See page 43

Adoption of Equator Principles

In accordance with the Equator Principles, DBJ will identify the environmental and social risks
associated with a project, assess their impact, and request that the project operator take the necessary measures to mitigate such risks and impact.

See page 66

TCFD (the Task Force on
Climate-related Financial
Disclosures) Scenario
AnalysisUpon identifying five technologies relevant to its business activities—carbon capture and storage(CCS), electric vehicles (EVs), biomass, hydrogen, and renewable energy—from those highly correlated to climate change, DBJ analyzed and assessed the growth opportunities for each sector
through separate scenarios based on the development and proliferation of technologies.

United Nations Environment Programme
Finance Initiative (UNEP FI)
Special Advisor

Cre-en Inc.
Representative Director

Takeshi Mizuguchi

Takejiro Sueyoshi

Ayako Sonoda

It is interesting that DBJ is trying to associate
SDGs with internal activities by scrutinizing thedetails of individual investment and loan projects and linking them to SDGs. As DBJ works
to deepen contributions to SDGs, such as byconducting evaluations at multiple stages,
I believe this will lead to changes in behavior
and the management of targets, from the standpoint of increasing the true impact of activities.

I think it is unique how DBJ uses the SDGs
framework to get stakeholders to better
understand the social value that DBJ provides.
Changes must be made in the economic andsocial structure in order to achieve SDGs. To
spur changes in the economy and society by
2030, it will be important for DBJ to convey its
vision and values in the priority fields it targets.

I totally understand this effort at SDGs
Mapping as it links individual projects down
to the level of the 169 targets of the SDGs.
I believe this effort will be useful in furthering
dialogue with stakeholders by using thecommon language of SDGs to describe DBJ’svalue system and strategies, as staff discussvisions for the future and recognize social
issues that need to be tackled.

Creation of Policy on Investments and Loans with Environmental and Social Considerations

See page 66

Corporate Governance Framework

DBJ aims to balance economic value and social value in its unique business activities basedon sustainability management, with the objective of achieving its mission of sustainable
development in Japan and the world. In 2017, DBJ formulated its Policy on Sustainability tocontinuously improve the value creation process and enhance dialogue with stakeholders.
DBJ has formulated and disclosed the following initiative and policies for businesses andsectors with a strong likelihood of having significant risks or negative impacts on the environment and society, in the interest of extending environmentally and socially sound investments and loans.
The policy was put into practice on October 1, 2021,
and will be revised as deemed necessary in the future.

Businesses subject to this policy
1. Businesses prohibited from receiving
investments and loans regardless of sector
2. Businesses that require additional due
diligence for investments and loans
regardless of sector
3. Policies for specific sectors(1) Weapons(2) Coal-fired thermal power generation(3) Palm oil (4) Lumber(5) Coal mining (6) Oil & gas(7) Large-scale hydroelectric power

See page 54

https://www.dbj.jp/en/sustainability/
Please refer to the DBJ website for more information about the policy on Investments andLoans with Environmental and Social Considerations.

Corporate Data

Establishment of DBJ Green
Building Certification

Takasaki City University of Economics
President

Corporate Governance

Advance the GRIT Strategy

DBJ established the Sustainability Committee to identify important social issues from ESG andother perspectives and to incorporate these matters into its financing, asset management, andother business activities.

Strategy

department)

Establishment of
Sustainability Committee

Value Creation Story

With the aim of engaging in more dialogue with its stakeholders, the DBJ Group began a trial of SDGs Mapping to increase visibility of the social value created through its investment and loans operations. To instill this awareness within DBJ, we are working
to increase the literacy of all employees by creating an in-house portal and text summarizing related knowledge, while advancing
discussions across the organization through the 2050 growth strategy meeting. While advancing our GRIT Strategy, we will
come up with new ways to engage in additional dialogue.

20

Development Bank of Japan Inc.
Integrated Report 2021

Development Bank of Japan Inc.
Integrated Report 2021

21

Invigoration and Stabilization of Financial Markets throughPartnerships and Collaboration
The DBJ Group provides unique solutions through optimal partnerships, emphasizing cooperation andcollaboration with other financial institutions and non-financial companies.

Sweeping structural changes

on

Fin
a

esp

sR

Group Companies

In v

es

Governmentt

Government investments
and loans

Regional financial
institutions
Major financial
institutions

Investments
and loans, asset
management

SRI bonds

Business Strategy
P 22

P 22
Energy Sector
P 24
Transportation Sector
P 26
Urban Development Sector
P 28
Industrial Sectors
P 30 Dialogue with Customers to Realize a Sustainable Societysvice

Joint funds

ry

ser

IT andfoundations

iso

Investors

A

Asset management

Risingawareness ofsocial valueAsset

ma na gemen t

Sector Strategy

Area Strategy

P 32
P 32
P 35

Procurement and Management of Funds	DBJ receives funding in various formats, including the procurement and management of funds from institutional investors and financial institutions in Japan and abroad. We use
these funds to supply risk capital to domestic and overseas
customers in the industrial and infrastructure fields.

P 36

	Crisis Response Operations and Special Investment
Operations are mandated by the DBJ Act and are properly
undertaken as operations backed by the unique strengthsof the DBJ Group.

Regions
Overseas

Function Strategy
P 36
P 40
P 41

Special Investment Operations and Crisis Response Operations
Syndication, Advisory, and Consulting Services
Asset Management

Corporate Governance	Crisis Response Operations andSpecial Investment Operations

Strategy

Surveys andconsulting
serviceseAddressing
sustainability

i al(in d Inv e
u st s t
ri a
l

dg

S

Addressing sustainability

Spec

s

Bonds and loans

wle

Sustainabilitytio nOverseas
bases

Kno

I

Developing businessoverseas

s

eO

a
p er

dv

Internationalin gA presentation of the DBJ Group’s various sustainability management
activities from the perspectives of its business and managementfoundation strategiesi

Response to decline inworking-age populationnc

ts
a tio nenpermt O e nt)e n tmm nv e sA

D and S
movements accelerated
during pandemic

Aging

Social issues same as management
issues faced by customers

D

Utilization and development for
digital transformation business

Customers’
point of view

C ri si

DigitalRecovery frompandemic,
growthFinancial
institutions andoperatingcompanies

Value Creation Story

Collaboration andcooperation

D.A.I.S.

The DBJ Group’s
StrategyManagement Foundation Strategy

Provision of Knowledge

P 42
Financial Strategy
P 44
Human Resource Development
P 46
Knowledge and Collaboration
P 49 	Taking the Initiatives to Spread PFS and	Backed by its experience and know-how in industrial andinfrastructure fields as well as in risk analysis and structuring,the DBJ Group creates added value through the provision ofknowledge in such forms as surveys and analyses.

SIB that Solve Social Issues
Corporate Data

Supply of Risk Capital by the DBJ Group
DBJ’s financing operations address diverse risks. These operations include investments (balance of ¥1.6 trillion) and loans(balance of approximately ¥15.6 trillion), ranging from crisis
response loans for emergencies and risk-tailored project
financing to hybrid and mezzanine financing. DBJ AssetManagement Co., Ltd. (DBJAM) has ¥1.5 trillion in capital

entrusted by investors, regional financial institutions, and othercustomers desiring expert fund management. In its work inasset management, DBJAM focuses on assets that allow the
DBJ Group to best apply its strengths. We will continue toenhance the supply of risk capital in order to better meet thediverse needs of our customers.
Mezzanine financing

Investments¥0.9 trillion*¥1.6 trillion

2

Loans

Working in unison, the DBJ Group provides diverse, high-value-added solutions forsolving various issues faced by its customers and for solving issues throughout society.

Overseas locations

Investments / Securities /Asset management• DBJ Singapore Limited• DBJ Europe Limited• DBJ Investment Consulting (Beijing) Co., Ltd.
• DBJ Americas Inc.

• DBJ Capital Co., Ltd.
• DBJ Investment Advisory Co., Ltd.
• DBJ Securities Co., Ltd.
• DBJ Asset Management Co., Ltd.

Research / Consulting

Real estate management /IT services / Shared Service

DBJAM (AUM)¥14.7 trillion¥1.5 trillion*

1(including Crisis Response Operations, structured-financing and asset-financing projects)*1 Portions entrusted by DBJ are eliminated from DBJAM’s assets under management (AUM).
*2 Overlapping portions for structured financing is eliminated from hybrid and mezzanine financing.

The DBJ Group(As of March 31, 2021)• Japan Economic Research Institute Inc.
• Value Management Institute, Inc.

• DBJ Real Estate Co., Ltd.
• Consist, Inc.
• DBJ Business Support Co., Ltd.

22

Development Bank of Japan Inc.
Integrated Report 2021

Priority Areas

Sector Strategy

Development Bank of Japan Inc.
Integrated Report 2021

Rebuilding of energy systems, more advanced transportation networks, creation of attractive communities

23

Energy Sector

Rebuilding and Reinforcement of Infrastructure
Connect with DBJ

Energy Sector

Main Business Fields
Provision of financing and advisory services to companies and projects in thefollowing sectors•E lectricity
•G
 as
•O
 il

Balance of Loans in the Electricity, Gas, Oil Refinery, Heat, andWater Sectors¥

3.3 trillion

Identified Social Issues

Strategy

Regardless of the issue, it is essential to take medium- andlong-term approaches to solving them as an industry, including
updates to systems. More specifically, it will be necessary to
focus on timelines for the commercialization of novel initiatives
and reaching carbon neutrality in stages, while monitoring theimpact on energy prices and the surrounding environment andscenery as renewable energy becomes a primary source ofelectricity.
The irreversible movement toward carbon neutrality willchange the dynamics of the energy industry, while creating
opportunities for innovation in terms of both software and hardware. We believe that the view that addressing global warming
will constrain economic growth and increase costs will bedebunked, instead holding that it will lead to further growth forJapan as more aggressive approaches are taken to addressing
climate change.

While maintaining strong relationships with customers, we will
focus on reliably supplying capital, including capital funding.
In particular, we are cooperating with other financial institutions to address demand for investments in renewable energy
and the staged transition toward carbon neutrality across entire
industries.
DBJ contributes to the realization of a carbon-neutral society
by supporting innovation in industry, while monitoring policymaking based on Japan’s Sixth Strategic Energy Plan.
Internationally, DBJ supports the business development ofJapanese firms overseas by bringing back home the knowhow it gains from providing investments and loans in foreign
markets.
Through asset management operations in the energy field,
the DBJ Group also endeavors to nurture markets so that institutional investors are able to participate in the domestic energy
market.

https://www.dbj.jp/case/list/?field=energy
Please refer to the DBJ website to see examples and case studies (Japanese only) in the energy sector.

G R I T Strategy Contribute to the Realization of a Sustainable Society
Initiatives in the Renewable Energy Field
DBJ proactively supplies risk and other capital for projects toturn renewable energy into a primary source of electricity, andthe balance of investments and loans in such projects stood at¥276.8 billion as of the end of fiscal 2020.
DBJ gets involved from the initial stages of installation insolar and wind power generation projects in Japan. DBJ alsooffers financing for power transmission and distribution projects
that upgrade the power grid to handle more renewable energy.
To bring the benefits of overseas initiatives back home to
Japan, DBJ also provides financing to offshore wind power
projects in Europe.
The Japanese government has set targets for the energy
mix with the intention of achieving carbon neutrality by 2050.
To achieve these targets, DBJ contributes on the financial side
based on the special characteristics of each energy source,whether it be solar power, onshore or offshore wind power,
biogas, or hydroelectric power.

Renewable Energy* Investment and Loan Balance(¥ billion)
300

276.8
241.9
200

186.9

100

0

110.2

2016

124.2

2017

2018

2019

2020 (Fiscal year)* Renewable energy: Solar power, onshore wind power, offshore wind power, biomass,hydropower, and power grids.

To see details of the GRIT Strategy, please refer to pages 16–17.

Corporate Data

Identified Risks and Opportunities

In August 2017, DBJ and U.S.-based Excelsior Energy Capital (EEC)—
whose managing partner is Chris Moakley—jointly established the
Excelsior Energy Capital Fund I to invest in renewable energy power
plants in the U.S. EEC was established for the purpose of managing thisfund. Its principal founders are former members of TerraForm Power, oneof the largest holders of renewable energy assets in the U.S.
As the U.S. government shows greater support for renewable energy,
investment opportunities, especially in solar and wind power, areexpected to grow. The fund invests mainly in small and medium-sized
renewable energy power plants, which are expected to be a growing
sources of renewable power. In December 2020, the fund raised morethan $500 million from Japanese investors and leading institutional investors in the U.S. and abroad.
With a high opinion of the fund’s foresight and originality, DBJ has been
involved as a founder and anchor investor. By supplying risk capital torenewable energy projects through the fund, DBJ will stay abreast of thelatest industry trends and expertise in the advanced U.S. electric power
market, facilitating further contributions to the development of Japan’s
energy industry and the realization of a carbon-neutral economy.

Corporate GovernanceIn an external environment experiencing changes in demographics and other aspects of the macro structure, advances in energy
conservation, and more frequent natural disasters, the government has set targets for reducing GHG emissions. To achieve thesetargets, it will be necessary to (1) make renewable energy a primary source of energy, (2) make entire industries carbon neutral instages by using ammonia and hydrogen as fuels, and (3) commercialize novel initiatives in carbon dioxide capture and storage (CCS);
carbon dioxide capture, utilization, and storage (CCUS); and direct air capture and storage (DACS).
With these undercurrents in motion, in order to maintain and expand safe and secure energy infrastructure, it is important to stabilize entire industries by drawing in more participants from a broad range of business fields, by having financial institutions supply asteady stream of capital.

The fund primarily invests in the manner
described above in a bid to boost the proliferation of the distributed power sources necessary for realizing a society with net-zeroemissions. Funds that invest in such projects
are rare. The successful fundraising is an indication that financial investors proactive on the
ESG front have given high marks for the fund’s
strategy.
Utilizing the latest knowledge in the U.S.
energy and financial markets gained throughits participation in the fund, DBJ will contributeto the advancement of ESG investment andthe development of the energy industry in Japan.

Strategy

As of March 31, 2021

Staff Comment

Establishment of Excelsior Energy CapitalFund I to Invest in Renewable Energy Power
Plants in the U.S.

Value Creation Story

The DBJ Group will contribute to the realizationof a decarbonized society worldwide and theglobalization of Japanese energy companies bytaking a leadership role in the financing ofchange in Japan’s energy markets.

Project Spotlight

24

Development Bank of Japan Inc.
Integrated Report 2021

Priority Areas

Sector Strategy

Development Bank of Japan Inc.
Integrated Report 2021

Rebuilding of energy systems, more advanced transportation networks, creation of attractive communities

25

Transportation Sector

Rebuilding and Reinforcement of Infrastructure
Connect with DBJ
The DBJ Group aims to lead in a financial
aspect the growth of the transportation sector
and advancement of transportation networks inJapan. DBJ will also act as a bridge between
Japan’s financial market and the global transportation financing market.
Main Business Fields
Provision of financing to companies andfor projects in the transportation sector

•L
 and
transportation•M arinetransportation•A irtransportation

Balance of Loans in the Transportation
Infrastructure (Transportation Industry) Sector¥

3.2 trillion

Identified Social Issues

Strategy

A variety of issues need to be resolved in order to sustain
growth in the transportation sector and to make transport networks more sophisticated. Proactively contributing to globalscale frameworks for decarbonization will be essential for theborderless movement of people and goods. The DBJ Group
became a signatory to the Poseidon Principles to contribute
financial resources for addressing climate change in the marinetransportation sector, which will be key to achieving theInternational Maritime Organization’s targets for reducing
greenhouse gas emissions over the medium and long term.
To truly understand the issues faced by its customers, DBJ willcontinue to offer financial solutions tailored to diverse needs
and act as a bridge between the global transportation financemarket and Japan’s financial market.

While maintaining relations with customers in the transportation
sector, we will refine our ability to respond flexibly to changes inthe external environment and society. More specifically, DBJ
will further strengthen its optimal financial solutions for quality
projects and assets in the land, marine, and air transportation
fields, as well as supply risk capital to Japanese companies for
sharpening their international competitiveness. Additionally,
DBJ will provide financing opportunities to Japanese regionalbanks and other financial institutions and investors in the global
transportation financing market through improved syndicatedloans. DBJ will focus on providing a range of investment products based on transition financing and investment.

© Ecobunker Shipping Co., Ltd.

G R I T Strategy Contribute to the Realization of a Sustainable Society
Signatory to the Poseidon Principles
DBJ became a signatory to the Poseidon Principles, a voluntary framework for financial institutions to contribute to initiatives in the marine transportation sector aimed at reducing
emissions of greenhouse gases over the medium and longterm. DBJ’s participation is a first among government-affiliatedfinancial institutions in Asia.
Since the end of the Second World War, DBJ has assisted
domestic operators and shippers in rebuilding the Japanesemerchant fleet through financing for shipbuilding. In recent
years, the Poseidon Principles have become a global movement for financial institutions to assist with the decarbonizationof the maritime industry. DBJ decided to become a signatory
to the Poseidon Principles, partly because they tie in with its
GRIT Strategy.
Based on the Poseidon Principles, DBJ will disclose its contribution to reducing greenhouse gases emissions through ship
financing. In addition, it will contribute to developing the marinetransportation sector through steady assistance on multiple
fronts, from addressing stricter environmental regulations in
the marine transportation sector to providing financing for
EBS, which was established to supply LNG fuel to ships inTokyo Bay.

https://www.dbj.jp/case/list/?field=transport
Please refer to the DBJ website to see case studies (Japanese only) in the transportation sector.

To see details of the GRIT Strategy, please refer to pages 16–17.

Corporate Data

Identified Risks and Opportunities

Corporate GovernanceIn the transportation sector, which has been greatly impacted by the COVID-19 pandemic, the market has temporarily contracted,
but over the medium and long term, the movement of people and goods will increase. Transportation infrastructure supporting thismovement will need to be constantly upgraded. At the same time, it will be necessary to create new services in line with people’schanging behavior, and to reduce environmental impacts. As the country adapts to a shrinking population and an aging society, safe
and secure transportation infrastructure is a field where Japan can proudly lead the world to greater heights.

Through its Special Investment Operations, DBJ has extended financing
to Ecobunker Shipping Co., Ltd (EBS), which supplies LNG fuel to ships
in Tokyo Bay.
In the marine transportation sector, environmental regulations concerning sulfur content in ship fuel were tightened in January 2020, making it
impossible to use traditional heavy fuel oil (HFO) as in the past. The
number of ships using LNG as an alternative fuel is expected to increase,
as LNG has a lower environmental impact, with 100% less sulfur and
25% less CO2 than HFO.
Against this backdrop, EBS was established by DBJ, Uyeno TranstechLtd., Sumitomo Corporation, and Yokohama-Kawasaki International Port
Corporation to deliver LNG fuel to ships in Tokyo Bay. DBJ supplied risk
capital for the construction of LNG bunkering vessels and for long-termbusiness financing.
This financing will facilitate the spread of LNG bunkering vessels withlower environmental impact. At the same time, it will also upgrade fuelsupply infrastructure and enhance the attractiveness and international
positioning of Tokyo Bay in Asia. Working in partnership with other shareholders in the venture, DBJ will help EBS take the marine transportationindustry to the next level.

Through financing of this project, as a financial
institution that evaluates and analyzes businesses, and also as a shareholder, DBJ is able
to get involved in negotiations with shipbuilders and new business development with customers. Through regular loan and investment
operations, DBJ was able to gain the perspective of marine transportation companies that isotherwise difficult to obtain.
DBJ supports the launch and growth of thisbusiness through financial support and audit
operations, while publishing reports about theship fuel market, including LNG. The LNG
bunkering project in Tokyo Bay is an unprecedented one with many uncertainties.
Leveraging the unique knowledge andstrengths of shareholders in this project, we
aim to help reduce environmental impact andreinforce the Tokyo Bay’s competitiveness as
an international port.

Strategy

As of March 31, 2021

Staff Comment

Upgrading LNG Bunkering Vesselsin Tokyo Bay

Value Creation Story

Transportation
SectorProject Spotlight

26

Development Bank of Japan Inc.
Integrated Report 2021

Priority Areas

Sector Strategy

Development Bank of Japan Inc.
Integrated Report 2021

Rebuilding of energy systems, more advanced transportation networks, creation of attractive communities

27

Urban Development Sector

Rebuilding and Reinforcement of Infrastructure
Connect with DBJ
The DBJ Group’s vision is to grow alongside cities
by helping with the maintenance, renewal, andexpansion of urban functions. The DBJ Groupalso aims to grow with the real estate financing
market as a market-stabilizing mechanism.
Main Business Fields
Loans and investments in urban development projects undertaken by developers; special-purpose companies forowning real estate; loans and investments for real estate investment trusts(REITs); and management of DBJ Green
Building Certification with the Japan Real
Estate Institute• Urban development business• Real estate
financing• DBJ Green
Building
Certification

Balance of Loans in the Real Estate Sector¥

1.9 trillion

Identified Social Issues

Strategy

The field of urban development is large in business scale, and it
has a major impact on society through investments, loans, andreal estate management. While addressing the decline in theworking-age population, the purpose and value provided byreal estate will probably have to be redefined to align moreclosely with evolving social values, including changes in workstyles. The sustainable development of cities in the future will
depend on how new communities are formed today, based on
projected changes in society and the economy with due consideration paid to the impact of the COVID-19 pandemic. As
ESG initiatives accelerate in the real estate industry, many new
businesses are likely to be created. A slow response to thesechanges would pose the risk of falling behind the competition.

DBJ will facilitate urban development through the supply of risk
capital, including financing for developers and individual development projects. With diverse investors becoming involved in
global real estate investment, DBJ will play the increasingly
important role of connecting real estate, a local asset, to global
financial markets. In the ESG field, DBJ and Japan Real Estate
Institute (JREI) continue to jointly operate DBJ Green Building
Certification, which was created in fiscal 2011 as a system toevaluate and certify real estate from an environmental andsocial perspective. We will also promote the use of a data platform for quantifying real estate management and ESG performance through an initiative at Arc Japan Inc., which wasestablished in fiscal 2020.

https://www.dbj.jp/case/list/?field=development

https://www.dbj.jp/en/service/program/g_building/Please refer to the DBJ website to see examples and case studies (Japanese only) in

Please refer to the DBJ website to see more information about DBJ Greenthe urban development sector.

Building Certification.

G R I T Strategy Contribute to the Realization of a Sustainable Society
Establishment of Arc Japan Inc.
Data platform business that supports the decarbonization of society by monitoring
the environmental impact of real estate
DBJ jointly established Arc Japan, Inc. with Arc Skoru Inc. andWoonerf Inc.
Approximately 40% of the world’s indirect emissions of CO2
are said to come from the construction of real estate, including
homes. The real estate market is expected to step up its efforts
to decarbonize by improving the comprehensive monitoring ofenvironmental loads in real estate properties owned or used bya wide swath of businesses, in addition to buildings that haveobtained real estate environmental certifications.
Arc is the name of Arc Japan’s data platform for standardizing
the environmental performance of real estate. Users of the platform can compare similar types of real estate, including properties
located overseas. The online system scores the environmental
performance of buildings and spaces after users enter data on
water usage and historical greenhouse gas and waste emissions.
Since establishing the DBJ Green Building Certification
system in fiscal 2011, DBJ has promoted ESG in the realestate sector by working with several related parties. Throughthe promotion of the Arc platform, DBJ and Arc Japan intend
to provide a framework that links financing to efforts to visualize
and improve the environmental performance of real estate, thus
facilitating the transition to a carbon-free society and improving
the sustainability of real estate in Japan.

To see details of the GRIT Strategy, please refer to pages 16–17.

Corporate Data

Identified Risks and Opportunities

Online meeting between the Kansai Branch Officeand Asset Finance Department

Corporate Governance

Increasing the international competitiveness of cities in Japan is key to enhancing the country’s overall competitiveness. Urban infrastructure, built up since 1945, is due for an upgrade. Seamlessly upgrading urban infrastructure is important from the standpoint ofcreating communities that take the environment and society into account. In Japan, however, the decline in the working-age population is having an impact on demand for real estate. Meanwhile, IT and AI, as well as improvements in market mechanisms, haveincreased the transparency of real estate transactions and the availability of information. Funding and capital strength are likely to
become more influential in economic transactions.

In March 2021, DBJ invested in the JR West Fund No. 1, a privately
offered real estate fund established by West Japan Railway Company and
JR West Real Estate & Development Company (hereinafter, the “JR WestJapan Group”).
In its medium-term management plan, the JR West Japan Group calls
for “enhancing coexistence with local communities and taking on thechallenge of creating new value.” The creation of this privately offered realestate investment fund was in line with these values. The JR West Japan
Group is also looking into establishing a private real estate investment
trust (REIT) in a few years that will mainly invest in properties in areas
along railway lines operated by JR West Japan. As part of these efforts,
we are aiming to combine the JR West Japan Group’s cumulative expertise in integrated rail development with DBJ’s knowledge of real estate
securitization to further enhance the value of areas along the railway lines
by expanding opportunities for community development.
Through its Special Investment Operations, DBJ will support this project’s contribution to the revitalization of regional economies, supplying
capital in conjunction with the creation of real estate securitization markets in areas along the railway lines and improving the attractiveness ofthese areas by advancing the development of railway lines. The project isalso expected to enhance competitiveness by improving value along therailway lines and expanding the real estate business of the JR WestJapan Group.

In Japan, where the population is aging anddeclining, the maintenance and reinforcementof railways has become a serious social issue.
Railways are key infrastructure in cities andregions and play a major role in strengthening
the international competitiveness of cities andinvigorating regional economies.
This initiative to support the acceleration ofreal estate development, which is necessary for
railway companies to increase the value along
their railway lines, is an example of how DBJ’s
accumulated expertise in real estate asset
financing can be applied to urban development
in major cities, while contributing to regional
revitalization and increasing the competitiveness of railways. We believe this initiative helps
solve problems for both customers and society.

Strategy

As of March 31, 2021

Staff Comment

Investment in Private Real Estate Fund
Offered by JR West Japan Group

Value Creation Story

Urban Development
SectorProject Spotlight

28

Development Bank of Japan Inc.
Integrated Report 2021

Priority Areas

Sector Strategy

Development Bank of Japan Inc.
Integrated Report 2021

Commercialization of new technologies, business restructuring to improve productivity and honecompetitiveness, business development in global markets

29

Industrial Sectors

Creation, Conversion, and Growth in Industry
Connect with DBJ

Industrial Sectors

Main Business Fields•M anufacturing• Communications, broadcasting, media• Retail and foods•H ealthcare• Hotels, Japanese-styleinns, tourism, etc.

Identified Social Issues

Strategy

Given the accommodative policies of central banks and theinnovations in fintech and other financial technologies, themeans of disbursing capital should continue to diversify in the
future. To help customers solve their problems, as a financial
institution, DBJ must add value and carve out solutions in
unique ways.
Our customers are ready to reinforce their business foundations through industry realignment, tap into changing demandduring the pandemic, and rebuild supply chains around theworld. At the same time, they will probably pursue innovations
and commercialize new technologies, in addition to developing
business overseas again in search of growth opportunities.
While staying abreast of these trends as a financial institution,
DBJ must flexibly and organizationally stay in step with its customers pursuing digital transformation and changes acrossindustry boundaries.

Backed by our deep specialist knowledge of the industrial sectors we cover and of individual customers, we fully leverage ourunique network rooted in various financing functions, knowledge, utility, and neutrality to support our customers andresolve issues in diverse fields. Such customer support encompasses assisting with growth, strengthening competition,
rebuilding business portfolios, developing new businesses, creating business overseas, collaborating with other companies
and sectors, optimizing capital policies, and cooperating withgovernment industrial policy.
In 2020, DBJ established the Chief Industry Strategy Officeover the Corporate Finance Department, Division 1, andCorporate Finance Department, Division 2, with the aim of creating new industries across sector boundaries. This office will
tackle issues that are common among industries in order toconnect disparate industries across existing boundaries related
to innovation, sustainability, and business transition. DBJ isalso enhancing teamwork within the Company through internal
collaborations and by polishing the skills of individual executives and employees, with a focus on fostering among its
employees the ability to present new ideas.

https://www.dbj.jp/case/list/?field=industry
Please refer to the DBJ website to see examples and case studies (Japanese only)
in industrial sectors.

G R I T Strategy Contribute to the Realization of a Sustainable Society
Creation of Society 5.0 Investment Program
DBJ created the Society 5.0 Investment Program as a newframework for investing in activities that contribute to the creation of a more sustainable society, while aiming to create newindustries with new value systems to solve social issues inJapan. This program invests in projects that did not readilyalign with DBJ’s investment values in the past, due to an
Company nameBusiness domain (new sector classifications)

Exergy Power
Systems, Inc.

Next-generation nickel-hydrogen storage batteries(batteries × services)

SkyDrive Inc.

Flying cars and drones(automobiles × aircraft)

CROSS SYNC INC.
FLOSFIA Inc.

Remote ICU and medical digital transformation(medicine × digital)
Next-generation power semiconductors(materials × energy)

uncertain outlook for the timeline of commercialization andmonetization of business, even though the technologies andideas, and the combinations thereof, might have a major
impact on solving social issues in the future.
The program focuses on domains that combine both cyberand physical areas, as defined by Society 5.0,* and targets a
broad spectrum of hardware domains. Since its creation in
2020, the program has invested in four companies.
As the structure of industry in Japan undergoes majorchanges, DBJ will use this program and others to act as conduits among industries and bring related parties together fromacross industry lines, thereby continuing initiatives to create abetter society for all.
* Society 5.0 calls for a human-centric society that balances economic development withsolving social issues, using advanced systems that combine cyberspace and physicalspace. (It first emerged as a concept for future Japanese society in the 5th Science andTechnology Basic Plan.)To see details of the GRIT Strategy, please refer to pages 16–17.

Corporate Data

Identified Risks and Opportunities

DBJ assists venture firms that are having an
impact on society by solving social issues andcreating new industries. In this case, DBJ provided financing to the company because its
products could become key devices in realizing a green society.
We believe messaging and networking will
be key to not only developing the product but
also spreading it for the venture firm, with theaim of entrenching this groundbreaking product in society. In addition to financial support,
DBJ helps with business planning and information disclosure to raise recognition andutilizes its broad customer base to create networks with downstream users and corporations, with the objective of enhancing the valueof the subject company and realizing a green
society.

Corporate Governance

While struggling to overcome the challenges presented during the COVID-19 pandemic, Japanese industry has accelerated efforts
to solve issues it has long faced, such as ensuring workplace safety, reforming workstyles, innovating with AI/MI, and realizing manufacturing not dependent upon the skills and intuition of veteran workers. Moreover, the Japanese government declared the goal of
becoming carbon neutral by 2050 amid the so-called green recovery, a global movement that has drawn much attention to newissues in sectors mainly responsible for generating CO2 emissions.
The efforts of individual companies will not be enough to overcome these issues. With digital transformation and sustainability as
new opportunities for change, we are likely to see unprecedented restructuring and collaboration across disparate industries, newbusinesses launched, and global production structures realigned. Industry in Japan, which has been called a global innovator, is in
position both to take the lead on quickly finding solutions and rolling them out into society and to seize the opportunity to win backthe global leadership position.

DBJ has extended financing to FLOSFIA Inc. as a part of its Society 5.0
Investment Program. FLOSFIA is a venture firm from Kyoto University thataims to be the first in the world to develop and produce next-generation
power semiconductors using alpha gallium oxide ( -Ga2O3; hereinafter,
GaO® power devices).
Power semiconductors are chips that convert and control electricity,
key devices for the efficient use of electricity. As the world moves toward
carbon neutrality and more devices are electrified in society, improving theperformance of power semiconductors to reduce electrical conversion
loss is garnering attention as a means of solving global environmental
problems.
The GaO® power devices being developed and manufactured by
FLOSFIA are expected to improve energy conservation by more than
10% compared with conventional products. In addition to common
household electrical appliances, these power devices hold the promise ofhigher energy efficiency in a variety of fields that use electricity, such astransportation, telecommunications, and manufacturing. If uptake in electric vehicles goes as expected, they are likely to have a major impact onsociety as development of such issues focuses on increasing convenience, such as longer-distance driving. Through funding for FLOSFIA,
DBJ contributes to strengthening the supply chain for power semiconductors in Japan, while also moving one step closer to a green and sustainable society.

Staff Comment

Strategy

Provision of financing andadvisory services for companies and projects in industrial
sectors

Moving toward a Greener Society by
Investing in FLOSFIA Inc., a Next-Generation
Power Semiconductor Venture Firm

Value Creation Story

In industrial fields seeing changes brought about
by technological innovation, the creation of new
businesses, and restructuring, the DBJ Groupwill take a direct approach to solving issues
faced by customers and society while searchingfor growth opportunities for itself. As an incubator that creates new businesses and markets,
the DBJ Group aims to play an essential role instrengthening the competitiveness of industries
in Japan.

Project Spotlight

30

Development Bank of Japan Inc.
Integrated Report 2021

Development Bank of Japan Inc.
Integrated Report 2021

Dialogue with Customers to Realize a Sustainable Society

DBJ provides leading-edge sustainable financing solutions, such as the DBJ Sustainability Evaluation
Certification Program, and emphasizes dialogue with customers that aim to solve social issues through theirbusiness activities in order to realize a sustainable society.

31

Dialogue with Customers to Realize a Sustainable Society

Connect with DBJ

Project Spotlight

History of Sustainability at DBJ
Starting in the era of overcoming industrial pollution, DBJ has continued to adapt to the changing times and provide assistance toenvironmental businesses. Using the knowledge gained through over 40 years of experience and the provision of more than ¥3 trillion in investments and loans, DBJ supports corporate initiatives through dialogue and financing.
1950–

1990–

Events inside and outside Japan

DBJ Initiatives

Events inside and outside Japan

Minamata disease

Creation of pollution prevention loan programs

1958

Act on Regulation of Factory Effluent

1960

Wastewater treatment loan program

1963

Soot prevention loan program

1970

Flue gas desulfurization loan program

1967	Basic Law for Environmental Pollution
Control
1968
1973

Air Pollution Control Act
Oil crisis

1975	Resource recycling and energy
conservation loan programs

1985	Vienna Convention for the Protection of
the Ozone Layer

1988

Ozone layer protection loan program

1993

Basic Environment Law

2000	Basic Law for Establishing a RecyclingBased Society
2002

Kyoto Protocol

2003

UNEP FI Roundtable in Tokyo

2008

Global Financial Crisis

2011

Great East Japan Earthquake

2015

Paris Agreement

Creation of comprehensive loan programs forenvironmental measures
2004	
Environmental Rated Loan
Program launched2006E nterprise Disaster Resilience Loan
Program launched

2011

BCM Rated Loan Program launched2011 BJ Green Building Certification
D
Program launched2012E mployees’ Health Management
Rated Loan Program launched2020	
DBJ Sustainability Linked Loans withEngagement Dialogue createdleast 70% of its portfolio by 2030. In carbon recycling, one of
the six areas, it proposes (1) bio-based polymers, (2) chemical
and material recycling, and (3) CO2 capture and utilization as
concrete solutions.
In light of worldwide attention on the recycling of plastic
resources, through dialogue, this loan sets forth SPTs as quantitative targets for measuring progress on the chemical recycling project in the carbon recycling business domain. The
SPTs are linked to the commercialization of advanced chemical
recycling in Japan and should help facilitate the recycling ofplastic resources in Japan.

Strategy

1953

DBJ Initiatives

Mitsubishi Chemical Holdings Corporation is a holding company
that has Mitsubishi Chemical Corporation, one of the largest
diversified chemicals companies in Japan, under its umbrella.
In November 2020, DBJ extended a DBJ SLL with Engagement
Dialogue (hereinafter, “this loan”) to Mitsubishi Chemical Holdings
Corporation.
Management at Mitsubishi Chemical Holdings Corporation
aims to realize KAITEKI, an original concept coined by thegroup that refers to “the sustainable well-being of people,­society, and our planet Earth.”
Under KAITEKI Vision 30, its basic medium- to long-term
management strategy that was unveiled in February 2020,
Mitsubishi Chemical Holdings Corporation plans to transform
its business portfolio into one that solves social problems. It
lists social challenges that the Mitsubishi Chemical Groupshould tackle in order to realize its vision for society by 2050,
and identifies six areas of business with the potential for growththrough helping to solve these problems. Mitsubishi Chemical
Holdings Corporation aims for these businesses to make up at

Value Creation Story

Extension of DBJ SLL with Engagement Dialogue to Mitsubishi Chemical
Holdings Corporation

Managers from Mitsubishi Chemical Holdings Corporation (center of photo) and DBJ

The DBJ Sustainability Evaluation Certification Program is a listof financing options based on the non-financial information ofcompanies screened with DBJ’s proprietary systems.
Having launched the world’s first environmentally rated loan
program in 2004, DBJ introduced the BCM Rated Loan
Program in 2006, which evaluates the disaster prevention andbusiness continuity plans of companies, and the Employees’
Health Management Rated Loan Program in 2012.
The most important feature of the DBJ Sustainability
Evaluation Certification Program is the evaluation process,which emphasizes direct dialogue with customers. We engage
in face-to-face conversations with clients about their initiatives
to fill in gaps around publicly available information. Evaluation
criteria, incorporating the latest trends, is reviewed every year
by a committee of advisors consisting of outside experts.
Once the evaluations are complete, DBJ hosts networking
events with an awards ceremony format, where senior managers from participating companies can share ideas. DBJ provides feedback, shares details of the evaluation of outcomes,
conveys future expectations, and shares examples of bestpractices at other companies, to boost its clients’ progress insustainability management.

Sustainable finance has gained traction in Europe and Japan,
and in 2020, DBJ began offering DBJ Sustainability Linked
Loans (SLL) with Engagement Dialogue. These DBJ SLL withEngagement Dialogue finance solutions are based both on
the Sustainability Linked Loan Principles (SLLP) developedby the Loan Market Association (LMA) and other expert groups
and on the Green Loan and Sustainability Linked Loan
Guidelines issued by the Ministry of the Environment in Japan.
Under this program, DBJ uses dialogue to support its borrowers in setting and achieving ESG-related targets (sustainability
performance targets, or SPTs) that serve to improve the borrower’s sustainability management.
For DBJ SLL with Engagement Dialogue, the Bank has created a process that emphasizes dialogue with customers in thecontext of the latest trends in sustainability, backed by DBJ’s
know-how in the sustainability field, accumulated over many
years through the DBJ Sustainability Evaluation Certification
Program. This dialogue entails the creation of multiple opportunities for discussion about setting optimal SPTs based on thecustomer’s business strategy and sustainability strategy.
Throughout the process, DBJ assists customers with devising
their external public relations activities and a more sophisticated sustainability strategy to accompany their non-financial
information.

Assessment Flow of DBJ Certification Programs
1

2

3

4

5

6

Preliminary

Interviews

Judgment

Evaluation

Financing

Feedback

meeting

decision

implementation

screening

Staff Comment

Message from the Client

Corporate Finance Department, Division 1

Sustainable Solution Department

Mitsubishi Chemical Holdings Corporation

As the trend toward a sustainable society
accelerates around the world, the importanceof sustainability management has continued to
grow. This loan will help Mitsubishi Chemical
Holdings Corporation advance its chemical
recycling initiative and help solve the issues ofdecarbonization and resource recycling, twoissues that will influence structural changes in
the industry. DBJ will continue to proactively
support the initiatives of its customers to realize sustainability management.

DBJ has supported the sustainability strategyof Mitsubishi Chemical Holdings Corporation
through DBJ Environmentally Rated Loans andother programs. With the DBJ SLL withEngagement Dialogue, DBJ engaged ininsightful dialogue with the corporation about
its value creation process for 2050, setting
SPTs as metrics for the carbon recycling business, an area of importance going forward forsolving social issues related to climate change
and a circular economy, while taking into
account its basic medium- to long-term management strategy. DBJ will continue to assist
the corporation with its sustainability strategy
and back its efforts to achieve the SPTs.

Mitsubishi Chemical Corporation has decided
to construct one of Japan’s largest chemical
recycling plants as a concrete solution forthe problem of plastic waste. The company
will do its utmost to achieve the SPTs laid out
in this loan for advancing sustainability management, and provide solutions for social
issues after constructing the chemical recycling plant.

Track record for DBJ Sustainability Evaluation Certification Program
Environmental Rated

BCM Rated

Employees’ HealthManagement Rated

SLL with Dialogue
Engagement

Total

Total number of rated loans as of
fiscal 2020 (accumulated total)

32
(719)

18
(396)

24
(234)

2
(2)

76
(1,351)

Total amount of rated loans¥1,614.7 billion¥517.7 billion¥312.0 billion¥35.0 billion¥2,444.4 billion

Corporate Data

DBJ Sustainability Linked Loans with Engagement Dialogue

Corporate Governance

DBJ Sustainability Evaluation Certification Program32

Development Bank of Japan Inc.
Integrated Report 2021

Priority Areas

Area Strategy

Development Bank of Japan Inc.
Integrated Report 2021

Industrial revitalization based on regional characteristics, overseas business development, response toinbound tourism, business succession

33

Regions

Self-Reliance and Revitalization of
Local Economies

Regions

Kushiro Representative Office

Hokkaido Branch

Hakodate Representative OfficeNiigata Branch

Aomori Representative OfficeToyama Representative Office
Hokuriku Branch
OutlineTohoku Branch

Okayama Representative Office

Provision by the DBJ Group ofservices tailored to the characteristics of the respective
regions in Japan from 10
branches and eight representative offices across thecountry• Investments and loans• Consulting services• Planning and researchservices

Total Number of Business Alliances with Financial Institutions

Matsue Representative Office

Head Office

Chugoku Branch
Kyushu Branch
Oita Representative Office
Minami-Kyushu Branch

Tokai Branch
Kansai Branch
Shikoku Branch
Matsuyama Representative Office
Strategy

As of March 31, 2021

112

By providing detailed solutions to regional problems, the
DBJ Group strives to increase the value of its human capital(e.g., the skills and experience of its executives and employees), and relationship capital (e.g., networks).

The regional economic outlook is severe with declining household spending and weaker demand for loans alongside a longterm downtrend in regional populations. Industries that dependon non-resident populations, such as tourism, a key industry
in outlying regions, have been heavily impacted by restrictions
on the movement of people during the COVID-19 pandemic.
On the other hand, regional demand may increase if people
remember the value of outlying areas, amid changes in workstyles, such as working remotely and the realignment of supply
chains.
As regional economies contract in these circumstances,
regional enterprises need growth strategies that include overseas business development, measures to improve corporate
value through business restructuring and succession, andascertainment of good opportunities in asset management.

DBJ provides services with the three following points in mind,
in order to support the new development of regions, while considering the impact of the COVID-19 pandemic on regional
economies and the values of each region.
1. Offer support on the knowledge side for discovering new
regional resources that attract people to the regions, while
maintaining the uniqueness of the regions, in response to
the sharp decline in people’s movement due to the COVID19 pandemic.
2. Provide support for business succession and the development of new local industry amid changing industry structurescaused by the movement toward carbon neutrality and thedeclining working-age population.
3. Collaborate and cooperate with regional financial institutions
on local initiatives.

Accomplishments and Initiatives to Date
Fiscal 2019

Special Investment
Operations

Supply of risk capitalthrough collaboration andcooperation with regional
financial institutions
OthersFiscal 2020
• Invested in JR West Fund No. 1, which seeks to enhance
the attractiveness of regions by advancing development
along railway lines•H elped regional financial institutions change the businessmodels of local companies during the pandemic by providing subordinated capital loans to Precision System Science
Co., Ltd. through the Chiba Corporate Value Improvement
Fund, a joint fund set up with The Chiba Bank Ltd.

• Signed cooperative agreement for disaster response operations with regional financial institutions in response to COVID-19• Cooperated with regional financial institutions through funds• Issued reports about solving regional issues• Promoted PPP/PFI projects and made proposals for rebuilding public infrastructure• Offered advisory services to local public organizations related to comprehensive government policies• Provided knowledge to local governments, including assistance for managing public assets

Collaboration and Cooperation with
Regional Financial Institutions
Support for Regional Financial Institutions with BusinessFeasibility Studies
Working with regional financial institutions, DBJ provides to theclients of regional financial institutions support for assessing thefeasibility of businesses that propose solutions to management
issues. Based on an analysis of macroeconomic conditions
and individual companies, DBJ identifies management issues
at clients, and then presents its findings in an easy-to-understandformat.
DBJ subsequently comes up with various financial solutions
to the identified issues to help its clients formulate their own
growth strategies and drum up business. Employees dispatched to DBJ from regional financial institutions are given
opportunities to gain knowledge through on-the-job training
while performing business feasibility studies of the clients of
their own bank. DBJ holds study groups to help regional financial institutions gain a better understanding of business feasibility assessments.
Initiatives in PPP/PFI and Public Asset Management via
Collaboration with Local Governments and Regional
Financial Institutions“Public asset management” refers comprehensively to thereassessment of assets held by national and local governmentsfrom a management perspective. DBJ assists numerous local
governments in this regard, helping them create plans anddraw up individual projects with group think tanks.

https://www.dbj.jp/service/finance/area/index.html
Please go to the DBJ website to see the areas supported by each branch (Japanese only).

Regional Emergency Response Program
With a string of major natural disasters, including earthquakes
and typhoons, striking regions around Japan, DBJ has createdthe Regional Emergency Response Program to provide flexible
and rapid support to meet the demand for initial-response
emergency funds by those affected by natural disasters. This
program was created in conjunction with the Regional
Reconstruction Headquarters, which was established with theobjective of ensuring an adequate first response to regions
struck by disasters, through tight-knit collaboration among ourbranches and representative offices across Japan, as well as
our head office departments. DBJ also provides assistance forthe reconstruction of disaster-struck regions through the establishment of funds with regional financial institutions.

Collaboration for M&A of Local Companies andOverseas Information Dissemination
DBJ helps local companies address various management
issues, such as business restructuring and succession as well
as expansion of business domains, including overseas expansion. As part of efforts to revitalize regions through collaboration with regional financial institutions, DBJ creates M&A
opportunities for local companies through its network ofregional banks.

Corporate Data

Strategy

DBJ set up PPP/PFI Promotion Centers in June 2013. Whileplanning and holding its PPP/PFI Academy seminars, DBJ
offers regional platforms for cooperating at the national level.
In these and other ways, DBJ has made a concerted effort toexpand the use of PPP/PFI, putting into place a structure forpromoting their use, including broad scientific research commemorating the 20th anniversary since the enactment of the
PFI Act. In particular, the PPP/PFI Academy encourages
roundtable discussions and the sharing of advanced casestudies through a teleconference system that connects allof DBJ’s bases.

Corporate GovernanceLonger-Term External Environment and Social Issues• Supported upgrading of exchange centers, with a focus
on sports venues, through financing provided to XSM Flat
Hachinohe Co., Ltd. (Aomori), which owns Japan’s first­multi-purpose arena• Provided project financing to PPP Shinsakura K.K. (Toyama)
to advance a public–private project to create compact
communities

Value Creation Story

The DBJ Group provides solutions for regional
issues, connecting regions throughout Japan toTokyo, domestic regions to those overseas, andregions the world over to each other.

Head office
10 branches
Eight representative offices

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Priority Areas

Development Bank of Japan Inc.
Integrated Report 2021

Area Strategy

Priority Areas

Utilizing the Diverse Value of Forests

Regional Revitalization with Traditional Japanese-Style Homes
DBJ provides information and advice about creating economic
value with traditional Japanese-style homes with the aim ofusing such homes to stimulate regions. Research reports published by DBJ in recent years include one titled “Regional
Revitalization Using Traditional Japanese-Style Homes toCreate Economic Value,” which discusses the potential market
for repairing and remodeling traditional Japanese-style homes
and the economic boost from overseas tourists staying atthese homes, and “Key Points for Businesses Using Traditional
Japanese-Style Homes,” which introduces example businessmodels for using such homes and reference benchmarks forbusiness revenue.

Overseas

Positioning overseas operations within its sector
strategy and function strategy, the DBJ Group
engages in global operations in sectors providing high added value.

Subsidiaries in London, Singapore, Beijing (including a branch
office in Shanghai), and New York to coordinate operations
overseas

NIPPONIA Mino merchant family town

State of Community Creation during the Pandemic

Second meeting of experts (December 23, held remotely)https://www.dbj.jp/investigate/etc/index.html
Please refer to the DBJ website to see the Regional, Industry, and Economic Report(Japanese only).

Under these circumstances, the DBJ Group set up a
council of experts consisting of representatives from various
circles to investigate from multiple angles the state of community creation and to elicit their recommendations for future
development, assuming the COVID-19 pandemic is here tostay and that it will have a lasting, irreversible impact oncompanies and people. Taking note of the following points inthese recommendations, DBJ will continue to engage in initiatives to revitalize regions and encourage private–public
sector collaboration.
1. Quantify the impact of the COVID-19 pandemic and measures to boost the economy.
2. Examine the direction of reforms for each type of city
based on the regional population and industrial
characteristics.
3. Create and use new metrics for evaluating the diverse value
and wealth of regions without relying on economic indicators.

Strategy

Although the global economy has fallen sharply during the
global COVID-19 pandemic, economies have begun to recoveron a patchwork basis depending on vaccination rates and thescale of COVID-19 cases. Based on projections for continued
growth over the longer run, the DBJ Group is likely to see
robust demand for global business development from its corecustomers in domestic industries. Over the medium to longterm, however, growth is likely to return and increase needs for
global business development in domestic industries, whichmake up the DBJ Group’s core base of customers.
Demand for sustainability financing is projected to increasein the infrastructure field, including energy, as countries aroundthe world move to become carbon neutral. It will be importantto tap into these growth opportunities overseas and translatethem into sustainable growth in Japan’s economy and industries through effective domestic initiatives.

While monitoring the impact from COVID-19, DBJ will continue
to engage in overseas operations in line with its sector strategy
and function strategy.
1. In infrastructure fields such as energy and transportation,
DBJ will provide investments and loans for the overseas
development of Japanese industry and for projects thatbring overseas knowledge to domestic markets.
2. DBJ will provide investment and advisory services to support
the overseas industrial expansion needs of its customers,
including customers headquartered regionally in Japan.
3. DBJ Group companies will manage investments in infrastructure assets and corporate assets for the purpose ofproviding Japanese investors with investment opportunities
overseas.

Corporate Data

In March 2021, the DBJ Group published the recommendations of a council of experts put together by the secretariat,
entitled “State of Community Creation during the Pandemic:
Initiatives to Leverage Diversity and Strengths of Communities
amid Changing Value Systems during the Pandemic.”
The prolonged COVID-19 pandemic has severely curtailed
the movement of people in the regions, while also accelerating teleworking and diversifying the value systems of people,
thereby creating new opportunities.

Longer-Term External Environment and Social Issues

Accomplishments and Initiatives to Date
Collaboration withother financial
institutions

Investment operations

OthersFiscal 2019

Fiscal 2020

• Entered into a business partnership with Business Finland Oy
for the purpose of soliciting innovation funds in Finland that
advance the formation of an innovation ecosystem throughindustry–academia–government collaboration• Jointly established Excelsior Energy Capital Fund I targeting
renewable energy power generation in the U.S. and solicited
investments from prominent institutional investors overseas aswell as several investors in Japan• Preferred equity financing for developing renewable energy
projects overseas (offshore wind power plants in Taiwan) with
JERA Co., Inc.
• Joint investment with Aica Kogyo Co., Ltd. (Aichi) to aggressively invest in Asia
• Signed financing agreement for a fund to invest in medical
equipment venture firms in Japan and the U.S.

• Signed an agreement to invest in Catalys Pacific Fund LP, aventure capital fund to advance the global development of drug
discovery innovations originating in Japan• Signed a financing agreement with other Japanese investors fora new fund set up by Airbus Ventures, a venture capital firm
belonging to the Airbus SE. (Operating from its office in Tokyo,
this fund will invest in Japanese venture firms and help themmake inroads into foreign markets after the investment)• Addressed M&A needs of customers in Asia

Corporate Governance

DBJ welcomes consultation requests from local governments
and business owners considering upgrades to stadiums andarenas around the nation. In May 2020, DBJ published the
Smart Venue Handbook describing in detail main points andprocesses for making concepts for stadiums and arenas a reality.
In the joint research paper “Estimations of Economic Scaleof Japan’s Sports Industry: Japan’s Version of Sport Satellite
Accounts 2018,” published by Japan Economic ResearchInstitute Inc. and Doshisha University in September 2019, it isestimated that the economic scale of the sports industry inJapan was ¥7.6 trillion in 2016.

OutlineStrategy

Smart Venues and Estimations of Economic Scale ofSports Industry

Value Creation Story

DBJ has published a research report titled “Forestry Business
Innovation Research Group Report: Establishing Forestry
Businesses That Utilize the Diverse Value of Forests.” Forests,
which grow on roughly 70% of the land in Japan, are a natural
resource of diverse environmental, social, and cultural value, in
addition to providing economic value. This report details thefindings of the study group, which consisted of experts fromacross industry, government, academia, and financial circles,on establishing businesses that utilize these forests as natural
resources to realize regional revitalization as well as on solvingsocial issues.

Industrial revitalization based on regional characteristics, overseas business development, response toinbound tourism, business succession

Self-Reliance and Revitalization of
Local Economies

Self-Reliance and Revitalization of Local Economies

Provision of Knowledge about Local Issues

Area Strategy

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Function Strategy

Overview of Special Investment Operations

The DBJ Group will provide optimal financing
solutions tailored to customer needs, from loans
to mezzanine financing and investments, while
reinforcing its ability to adequately evaluate various risks.

Addition

Special Investment Operations(Managing investments and loansin special account)
Fiscal 2021: ¥350 billion

Evaluation /verification

Special Investment
Operations Monitoring Board

Green Investment Fund

Life Sciences FundIn May 2020, this fund was established to help
businesses affected by COVID-19 rapidly andsteadily recover and grow, in reflection of the April
7, 2020, Cabinet decision “Emergency Economic
Measures to Cope with COVID-19.”

This fund was created in February 2021, to support businesses that aim to improve the sustainability of natural resources and the environment,such as renewable energy businesses, in consideration of the December 8, 2020, Cabinet decision“Comprehensive Economic Measures to Secure
People’s Lives and Livelihoods toward Reliefand Hope.”

Complement and encourage
private-sector enterprises(including pump-priming)
Capital funds(including preferred shares andsubordinated loans)

Target company initiatives• Initiatives for effective use of management
resources• Initiatives to promote management innovation– Cultivate new business– Form alliances among various sectors
and groups etc.

Political targets• Encouragement of self-reliant development of regional economies• Increase in competitiveness of Japan anddomestic enterprises• Development of markets for growth capitalThrough these three funds in Special Investment Operations, DBJ aims to reinforce the competitiveness of Japanese companies
and invigorate regional economies while supplying growth capital to the private sector.
Special Investment Operations

DBJ Innovation andLife Sciences Fund

Growth Fund forCoronavirus Revival

Green Investment FundThis fund supports initiatives topromote innovation in Japaneseindustry and strengthen the competitiveness of the life sciences industry.

This fund helps companies impacted
by COVID-19 recover and grow.

This fund invests in renewableenergy projects toward the realization of carbon neutrality by 2050.

Connect with DBJ

Project Spotlight

Support for Building a Healthcare Delivery System Based on the “ICU Anywhere” Concept
By drawing on its Society 5.0 Investment Program, DBJ supports CROSS SYNC, Inc. through investments along withKonica Minolta, Inc., Toyota Tsusho Corporation, and FINDEX,
Inc. With the ICU Anywhere vision, CROSS SYNC was established as a “Yokohama City University venture capital firm”
in October 2019 by intensive care doctors working in the­intensive care units of hospitals affiliated with Yokohama City
University. With the intention of reducing the number of deaths
and patients who rapidly decline in health, CROSS SYNC isa start-up firm that is developing and operating the iBSEN
application for analyzing medical data and enabling the remotesimultaneous monitoring of multiple patients based on theirvital signs and diagnostic images.
Through its Special Investment Operations, DBJ invested in
CROSS SYNC based on its innovative concept of supporting
acute-stage healthcare, through the combination of the expert
and tacit knowledge of practicing physicians with AI and other

IT to identify and display relevant information for the patient’s
healthcare needs, and quickly determining and sharing thehealthcare priorities of patients, based on estimates of illness
severity.
DBJ will dispatch its own employees and connect the many
relevant parties to facilitate the development of this productand encourage its use. By solving various social issues causedby doctor shortages, we aim for a society where anyone canreceive the best medical treatment anywhere.

Corporate Data

Capital account(Budget for fiscal 2021:¥175 billion)

Japanese­government(industrial
investment)* According to the Japanese government’s “Study Panel Concerning the Promotion of
Expanding Growth Funding,” certain financial institutions, including DBJ, are expected
to serve in a pump-priming capacity for the foreseeable future to attract private-sector
investment by cultivating new capital providers, markets, and investors, thereby fostering the development of an investment cycle led by the private sector.

Enhance risk capital supporting growth

Capital increase(Budget for fiscal 2021:¥175 billion)

supervision of activities, an advisory body to the Board of
Directors was established—the Special Investment Operations
Monitoring Board—with participation from outside experts infinancial and capital markets, industry, and other professionalgroups (see page 53).
Based on the Act for the Partial Amendment of theDevelopment Bank of Japan Inc. Act (Act No. 29 of 2020),
which was enacted on May 22, 2020, Special Investment
Operations were extended—the investment decision term andgovernment financing term from March 31, 2021, until March
31, 2026, and the deadline for ending operations from March
31, 2026, until March 31, 2031.

Other financial institutions(megabanks, regional banks,
private funds, etc.)
Loans, etc.

DBJ

Growth Fund for Coronavirus Revival

Corporate GovernanceSpecial Investment Operations, established as an intensive but
temporary scheme to supply growth capital* from the perspective of promoting the competitiveness of Japanese enterprises
along with regional revitalization, draw only a portion of theinvestment (industrial investment) from the Japanese government, enough to encourage the private sector to supply growth
capital. Since launching the aforementioned operations in June
2015, DBJ has made ¥931.5 billion (as of March 31, 2021) ininvestments and loans (132 projects in total), the first ¥893.2
billion of which has spurred ¥5,714 billion in private-sector
investments and loans.
Special Investment Operations follow policy objectives,in accordance with the law, complementing and encouraging
private-sector enterprises and ensuring appropriate competitive
relationships. To improve the structure of Special Investment
Operations and thereby maintain objective evaluation and

DBJ Innovation andStrategy

Provision of loans and investments after analyzing businessprospects, evaluating risks, and creating financing schemes.
Taking into consideration the traits of each project and theintentions of participants, utilization of DBJ’s expertise in integrated investment and loan services that flexibly deploy loans,mezzanine financing, and investments

Special Investment Operations

For its Special Investment Operations, to clarify priority areas for assistance, DBJ has set up the following three funds.

In light of the July 17, 2020, Cabinet decision“Follow-up on the Growth Strategy,” in March
2021, we renamed the DBJ Innovation
Ecosystem Invigoration Fund, which was createdin March 2020, to clarify our support for strengthening the competitiveness of the life sciencesindustry.

Outline

DBJ’s Initiatives to Supply Risk CapitalSpecial Investment Operations and Crisis Response Operations

Value Creation Story

Special Investment
Operations andCrisis Response
Operations

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

Function Strategy

Crisis Response Operationsloans as a complementary risk measure, among other measures, to government-designated financial institutions that
supply necessary funds to address such damage.
In March 2020, the COVID-19 pandemic was designateda crisis (see “Our Response to COVID-19” on page 15). As adesignated financial institution, DBJ collaborated and coordinated with private-sector financial institutions to rapidly andeffectively implement Crisis Response Operations.

Special Investment Operations and Crisis Response Operations

Accomplishments and Initiatives to Date
2008/10

2008/12

Commenced Crisis
Response Operations as
a designated financial
institution

2011/3Main events that were designated a crisis:•	Great East Japan Earthquake•	Damage from heavy rainfall during Typhoon#18 in 2015

Designated financial institutions•	Kumamoto earthquakes in 2016

• Designated financial institutions conductbusiness in accordance with the Crisis
Response Operations Rules (based on
approval of the competent minister).
•D esignated financial institutions conductbusiness with complete double checks ofrequired compliance at their financing
departments and their departments
responsible for crisis response operations.

Total funds raised by the government in Crisis Response Operations¥206.5 billion

• Loans: ¥8,447.9 billion (1,494 projects)• Commercial paper acquisitions: ¥361.0 billion (68 projects)

Total Crisis Response Operations related to COVID-19
			¥2,231.8 billion (345 projects)(As of March 31, 2021)
Great East Japan Earthquake of 2011
In the fiscal 2011 supplementary budget passed in the wake of
the Great East Japan Earthquake, ¥2.5 trillion was earmarked
for Japan Finance Corporation for Crisis Response Operations
targeting medium- and large-sized enterprises. DBJ proactively
provided assistance for clients affected both directly and indirectly by the disaster.
Along with designated financial institutions in the disasterarea, DBJ arranged the Great East Japan Earthquake
Reconstruction Fund.
In December 2014, in response to the shift of the stage ofearthquake reconstruction from the restoration of production
facilities (the “restoration stage”) to efforts to open up a newenterprise-based market that resumes production, collaborates

among multiple enterprises to boost industry competitiveness,builds infrastructure, and reinforces functions (the “reconstruction and growth stage”), we established a reconstruction andgrowth support fund in collaboration with the Regional
Economy Vitalization Corporation of Japan.
In fiscal 2018, with demand for reconstruction seeming tosettle, we established a new fund for medium-to-long-term
capital funds and other forms of money with shared risk, aimed
at supporting the economic development of the affected areas.
Going forward, we will continue to work with local financial
institutions while promoting efforts to help stricken areas
according to their particular stage of recovery.

Corporate Data

Note: Capital increases related to Crisis Response
Operations before the 2015 revisions to the DBJ Act
were transferred from capital to a crisis response
reserve (¥206.5 billion). Capital increases for Crisis
Response Operations after the revisions are to be
added directly to the crisis response reserve.

Total loans for Crisis Response Operations, loans with loss guarantee agreements, and commercial paper purchases

Kumamoto Earthquakes in 2016
In 2016, DBJ established the Kumamoto Recovery Officewithin its Kyushu Branch to better provide useful knowledge
and financial expertise for the restoration and reconstruction ofregions affected by the Kumamoto earthquakes.
In July 2016, DBJ formed the Kumamoto Reconstruction
Support Fund jointly with The Higo Bank, Ltd. and The
Kagoshima Bank, Ltd., financial institutions in the disasterstricken area. The fund supplies risk capital, through such
schemes as senior loans (repayment in full on maturity, uncollateralized, non-guaranteed loans) and subordinated loans, tobusinesses affected by the disaster.
Additionally, DBJ has provided beneficial information about
restoration and reconstruction through a cross-departmental
system, and has offered survey and planning services in conjunction with related local governments, national institutions,and economic groups, as well as local financial institutions.

Corporate Governance•	Extends the scope of Japanese government
recapitalization securing DBJ’s financial­structure, etc.
•	Establishes a new crisis response reserve
account, reflecting this obligation in the Articles
of Incorporation, and indicates mandatory
Japanese government ownership of more than
one-third of shares and other measures(As of March 31, 2021)

Project Spotlight
Provision offunds, etc.

Clients

Defines a new scope for DBJ’s­responsibilities, making Crisis Response
Operations obligatory for
an indefinite period

COVID-19 pandemic

Strategy

Private financial institution

Private financial institution

Private financial institution

Japanese Government• Capital
contribution• Lending of funds• Interest subsidies•	Prepares and announces “crisis
response facilitation guidelines”(approved by the competent minister)•	Implements complementary risk andother measures on the basis of agreements (approved by the competent
minister) with designated financial
institutions•	COVID-19 pandemic

DBJ

Two-step loans,etc.

Japan Finance Corporation(Crisis Response
Facilitation Account)

Earthquake Disaster Crisis Response Operations(through March 31, 2011)•	Turmoil in international financial markets(Global financial crisis)

Crisis Response Operations Scheme

Designated2020/3Financial Crisis Response Operations
and Earthquake Disaster Crisis
Response Operations

Value Creation Story

DBJ’s Crisis Response Operations function as a stabilizing
force during periods of instability in the economy, society, andmarkets.
The Finance Corporation Act (Act No. 57 of 2007, including
later revisions), consists of the provision of necessary funds
during such crises as disruptions in domestic or overseas
financial markets or large-scale disasters. In response to crisisrelated damage, Japan Finance Corporation provides two-step

39

Kumamoto Castle, damaged by the earthquakes(photo from the Ninomaru Parking Lot)

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Function Strategy

The DBJ Group mobilizes tie-ups and collaboration to provide syndicated loans and support for
M&A designed to promote Japanese companies’ growth strategies and strengthen theirinternational competitiveness, while offering
impartial consulting services with a long-term
perspective. Along with related services, thishelps clients solve the problems they face andstimulates activity in financial markets.

Asset Management

DBJ provides loans and investments after analyzing businessprospects, evaluating risks, and creating financing schemes.
Taking into consideration the traits of each project and theintentions of participants, DBJ utilizes its expertise in integrated investment and loan services that flexibly deploys
loans, mezzanine financing, and investments.

Syndication

Advisory Services

Research and Consulting
Utilizing its extensive network of connections to universities,
research institutions, experts, national governments, and local
governments, DBJ provides support through surveys andproblem-solving ideas related to business strategies and policy
formation for urban development, regional development, social
capital maintenance, energy, the economy, and industry.

Strategy and Initiatives to Date
Syndication
Activities have included leveraging DBJ’s strengths in syndicated loans in the energy sector and reinforcing ties and partnerships with regional financial institutions through such means
as business cooperation agreements for syndicated loans. In
this way, DBJ is contributing to corporate fund-raising while
also providing financing opportunities for financial institutions.

Advisory Services
As a result of its impartiality, DBJ has a wide network it can mobilize in providing its advisory services, including not only Japanesefirms but also overseas companies and private equity funds.
In fiscal 2017, DBJ entered into an overseas M&A advisorybusiness cooperation agreement with BDA Partners (headquartered in New York), which needed to develop business in
Asia and other parts of the world. The synergies generated
between BDA’s overseas network and the DBJ Group’s M&A
advisory organization and domestic and overseas networks
produced a more effective and efficient overseas M&A advisory
service for the client.
Research and Consulting
Japan Economic Research Institute Inc. is a comprehensive
think tank that conducts research in the public, solutions, andinternational fields. In the public–private partnership and project
financing initiative fields, it has a top-class track record inJapan backed by unparalleled experience and know-how.
Value Management Institute Inc., another comprehensive
think tank, excels in analysis using proprietary economic
models and insight into cutting-edge technologies. Its highly
specialized knowledge encompasses a broad range of policy
fields, including the formulation of integrated strategies for local
governments across Japan.

External Environment and Social Issues

Achievements

Japan is a nation with considerable assets, including over
¥1,900 trillion in household financial assets and ¥400 trillion in
pension assets. With the Japanese economy confronted by adeclining population and an aging society, it is imperative that
this wealth (financial assets) is steadily expanded.
In realizing sustainable asset formation for the nation, it is anextremely important policy issue for Japan is to have a healthy
and efficient capital market. Financial institutions, pension funds,
and other institutional investors must also advance their investment capabilities in order to maintain a vibrant capital market.

DBJAM was established in 2006 as a real estate investment
management company. In 2012, DBJ increased its ownershipof DBJAM to 100%, clarifying its position as a core company inthe asset management business within the DBJ Group. Since
then, DBJAM has diversified from real estate into the private
equity (PE) and infrastructure investment fields, creating athree-pronged business structure.
DBJAM has launched and augmented various investment
operations and investment products to meet the growing anddiversifying needs for alternative investments among investors.
Such as a role of gatekeeper or fund of funds manager, weinvest in private real estate funds and private real estate investment trusts (REITs), as well as PE, infrastructure and real estate
funds around the world.
As a result of these activities, assets under management
totaled ¥2,153.9 billion as of March 31, 2021. While meetingthe expectations of investors, DBJAM will contribute to the
expansion and development of the alternative investment
market.

Strategy
As a member of the DBJ Group, DBJAM’s mission is to provide
quality investment opportunities and management services toinstitutional investors in the increasingly important field of alternative investments, in a bid to help resolve social issues.
The DBJ Group fully leverages its ability to provide investment opportunities backed by its extensive knowledge andnetwork built over the years as an alternative investor. Its firstand foremost management policy is to maximize profits forinvestors while fulfilling its fiduciary duty. In order to create value
for investors, fiduciary duty is instilled in employees throughextensive in-house training and reflected in business plans andperformance evaluations.
DBJAM has been strengthening ESG investment from thestandpoint of further improving its management capabilities.
Through continuous progress and improvement in ESG integration, or the inclusion of ESG elements into business processes, DBJAM is able to conduct a deeper analysis of risks
and returns for each investment from a longer-term andbroader perspective. DBJAM aims to further advance its
investment services and expand profits for investors.

Corporate Data

DBJ offers expert advice related to corporate M&A—ranging
from the formulation of strategies, screening of acquisition candidates, and assessment of corporate value to negotiations,structure policy, and post-merger integration assistance—for
a variety of situations, including industry restructuring, overseas
business development, business domain expansion, businesssuccession, and fund investments and exits.

DBJAM is one of the most unique investment managementcompanies that specializes in alternative investments in thefields of real estate, private equity, and infrastructure aroundthe world.

Corporate Governance

DBJ utilizes its impartial standpoint to call on a wide range of financial institutions in providing high-value-added syndicated loans thatdraw on DBJ’s lineup of sustainability certification programs andother original DBJ financing products.

DBJ has provided information to other regional financial
institutions about a natural disaster risk-adjusted product it
jointly developed with The Hiroshima Bank Ltd. in fiscal 2017to provide loans with special provisions that waive the original
principal in the event of an earthquake, as well as loans withspecial provisions that waive the original principle in the eventof damage caused by heavy rains (created in fiscal 2018).
Moreover, DBJ put together special deals, including a large
syndicated loan, for the Fukuoka Airport concession project.

OutlineStrategy

OutlineDBJ Asset Management Co. Ltd. (DBJAM) contributes to the activation of new money flows
and development of financial markets throughthe provision of quality investment opportunities
and management services to institutional investors in the alternative investments field, which
has been growing in importance, while leveraging its industry knowledge and networks as amember of the DBJ Group.

Value Creation Story

Syndication,
Advisory, andConsulting Services

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Development Bank of Japan Inc.
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Management Foundation Strategy

Financial Strategy

DBJ Socially Responsible Investment Bonds

Financial Strategy

Bond Guidelines. DBJ will continue to support the sustainablegrowth of this market by continuing to issue SRI bonds andproactively engaging in international and domestic initiatives.

In fiscal 2014, DBJ became the first bond issuer in Japan toissue a green bond. Furthermore, DBJ has issued a DBJ
Sustainability Bond each year since 2015. In fiscal 2020, DBJ
issued €0.7 billion and $0.5 billion in such bonds as the only
Japanese issuer to do so for seven consecutive fiscal years.
The raised funds are allocated toward the creation of a sustainable society via financing for real estate properties eligible for
DBJ Green Building Certification, the Environmentally Rated
Loan Program, financing for renewable energy projects, financing in the green field, the BCM Rated Loan Program, and theRegional Emergency Response Program. Information on the
management and allocation of funds is evaluated by third parties to increase transparency.
In January 2017, DBJ became an issuer member of theGreen Bond Principles,* the first Japanese firm to attain sucha status, and in March 2020 it participated on a committee­created by the Ministry of the Environment to revise the Green* The Green Bond Principles are compiled by the International Capital Market Association(ICMA), investors, issuers, and securities companies. These parties are responsible for
updating annually the Green Bond Principles, which are voluntary process guidelinesthat recommend transparency and disclosure and promote integrity in the developmentof the green bond market by clarifying the approach for issuance of a green bond.
These parties also constitute a platform to share the latest information about green
bonds and disclose relevant information to society.

Issuance of SRI bonds

Value Creation Story

We target sustainable growth by constructing an
optimal risk–return portfolio while maintaining
and strengthening a robust financial base that
supports our unique business activities, including integrated investment and loan services.

(As of March 31, 2021)

Fiscal 2020

$520 million€700 million

Fiscal 2019 $1 billion
Fiscal 2018 €700 million
Fiscal 2017 $1 billion
Fiscal 2016 $500 million
Fiscal 2014 €250 million

Strategy

Fiscal 2015 €300 million

Capital Procurement (Non-Consolidated)(¥ billion)

Basic Policy

Businessstrategy

External
environment

Stress test

Fiscal 2020

3,153.4
922.7
580.0
150.2
192.5

3,790.8
643.3
300.0
150.2
193.0

3,951.8
1,142.9
800.0
150.2
192.7

5,786.7
1,497.3
1,050.0
150.2
297.1

100.2

100.3

100.2

—

535.8
589.5
1,005.0

549.4
446.3
2,051.4

579.3
583.1
1,546.1

618.7
2,479.1
1,191.4

IR Activities to Spread Understanding of DBJ’s Principles and WorkBusiness plan

Execution

Monitoring

Strategy for
financial capital

Financial Soundness Indicators
Issuer ratings
Common equity Tier 1 risk-weighted capital ratio

Fiscal 2019

A1 (Moody’s), A (S&P), AA+ (R&I), AAA (JCR)
16.65% Specific Initiatives to Improve the Value of
Financial Capital
A pillar of the DBJ Group’s business strategy is to provide longterm financing for infrastructure projects. To do so, the DBJ
Group procures long-term funds through corporate bonds andthe Fiscal Investment and Loan Program (FILP). In recent years,(As of June 30, 2021)(As of March 31, 2021)

DBJ has stably procured funds through FILP as well as byissuing corporate bonds, thereby augmenting its fund procurement activities with diversified maturities and methods. DBJ
has been issuing green bonds and sustainability bonds since
fiscal 2014. The issuance of these bonds has not only diversified our fund procurement base but also invigorated thesocially responsible investment (SRI) bond market.

In addition to procuring government credit through the Fiscal Investment and Loan Program (FILP) and the issuance of­government-guaranteed bonds, DBJ conducts its own fundraising activities, such as issuing corporate bonds (FILP bonds) todomestic and overseas investors and borrowing money from insurance companies and financial institutions, primarily regionalbanks. When conducting its own fundraising activities, DBJ places emphasis on having investors understand and support its
principles and work and, to that end, dispatches representatives to conduct proactive investor relations through face-to-facemeetings in all regions of Japan and overseas.
Particularly when raising funds through loans, DBJ takes care to further adeeper understanding of its work by giving examples of investments and loans
it has extended inside and outside Japan as well as within domestic regions.
DBJ also takes care to gain a deeper appreciation of the issues faced by theborrowing customer, viewing the interaction as an opportunity for further collaboration on investments and loans, in addition to borrowings.

https://www.dbj.jp/en/ir/
Please refer to the DBJ website for more information related to investor relations.

Corporate Data

Scenarioplanning

Funds raised (flow)
Fiscal Investment and Loan Program		 Of which, borrowings from FILP		 Of which, government-guaranteed bonds (domestic)		 Of which, government-guaranteed bonds (overseas)	Government-guaranteed bonds with maturity of lessthan five years (domestic)
Corporate bonds (FILP bonds)
Long-term debt
Of which, recovered, etc.

Fiscal 2018

Corporate Governance

Financial capital is a vital element of our business foundation
implementing advanced business strategies centered on our
sector strategy (see page 22) and function strategy (see page36). A robust financial foundation of funds and capital is necessary for the DBJ Group to execute its sector strategy, supply
risk capital, and engage in Crisis Response Operations.

We aim to maintain and strengthen our financial capital bymanaging it within the context of a risk appetite framework
based on sophisticated analysis of risks and returns, with due
consideration paid to regulatory capital (management focusedon shareholders’ equity ratios) and economic capital (management of capital using stress tests).

Fiscal 2017

44

Development Bank of Japan Inc.
Integrated Report 2021

Management Foundation Strategy

We aim to be an organization with diverse
human resources that helps employees develop
skills while raising their motivation.

Human Resource Development

Specific Initiatives to Increase the Value of
Human Capital
Intensification of the Hiring and Exchange of Human
Resources across the DBJ Group
DBJ will strengthen its hiring processes and practices andsecure the personnel necessary across the entire Group to
implement its sector strategy, function strategy, and area
strategy.
The DBJ Group will also work to further disseminate its longterm vision, Vision 2030, and its value creation process bystrengthening the exchange of human resources across the
DBJ Group.
Skills Development* DBJ dispatches employees to national government agencies, Group companies aroundthe world, and companies that have received investments.

Human Resource Development Vision

To steadily implement the DBJ Group’s value creation process,which aims to create both economic and social value, and torealize Vision 2030, our long-term vision for our future, it isimperative for us to nurture excellent employees who can
implement the distinctive business models of the Group,
including its integrated investment and loan services.
To this end, we think it is important to create structures inwhich employees will be highly motivated. Improving the valueof human capital is one of our most important priorities, and
DBJ is taking concrete steps to achieve this goal.

DBJ’s role has evolved and developed substantially to meet theneeds of the times. DBJ considers such innovation crucial tomaintaining its leadership position in the constantly advancing
field of finance.
To develop its all-important human resource assets, DBJ
encourages autonomous and pioneering behavior in its
employees as financial professionals in keeping with the visionof “generalists who can be specialists in many fields.” While it isimportant to acquire specialist knowledge, responding to society’s constantly changing needs also requires broad experience, deep knowledge, and the ability to see the big picture.
We continue to build a wide variety of systems based on thisphilosophy.

Outline of Human Resource Training System
Dispatch outside DBJ

In-house training (required/optional)

GlobalDomestic

Selfstudy

Foreign languages, finance, law, financial skills, etc.

New
employees

Training for new employees

Global humanresources training
program for young
employees

Short-term study on external programs

Youngemployees

Career development program

Study at foreign graduate schools

Career development program

Financial skills-related training• Proposal and screening
capabilities• Financial modeling• Financial products• Sustainability etc.

Diversity training(Women empowerment, “iku-boss,”
understanding people with disabilities, etc.)

Pre-management training

Compliance training / information security training

Mid-level
employees

Strategic human resource development throughjob rotation and on-the-job training

Newly appointed manager training

Global leadershipprogram for
managers

Secondments to external institutions (national­ overnment agencies, Group companies, etc.)g

Coaching program

Short-term study at foreignbusiness schools

Managers

Life/career plan seminar

Law

We constantly ask ourselves if we have laid the proper foundation for genuinely motivating officers and employees to take theinitiative in accordance with the DBJ Group’s corporate
philosophy.
•	DBJ conducts engagement surveys for employees, evaluates
the results of these surveys, and creates action plans thatenable each department to increase motivation throughimprovement activities.
•	In training about career formation, DBJ creates opportunities
for furthering understanding of its corporate philosophy andconstructive dialogue about improvements and practical
approaches.
Employees’ Use of Childbirth and Child-Rearing Support Systems,
Number of Employees in Training Courses (non-consolidated)
Ratio of employees returning to work after taking childcare leave(number of employees having completed childcare leave in
fiscal 2020)
Ratio of male employees taking childcare leave(employees who had a newborn child in fiscal 2020)

FinanceFinancialaccounting

Motivation and Engagement

Seminars and events for women empowerment and leadership training

22/22 (100%)111.4%

Rehiring system (number of registrants as of March 31, 2021)

25

Employees who use reduced working hours for childcare and­nursing care

63

Participants in “iku-boss” training (cumulative total)

About 240

Seminars for finding childcare facilities (cumulative total)

About 210

Corporate Data

Rank-based training•	New employees receive thorough growth assistance withapproximately three months of DBJ’s own accounting andfinancial analysis courses and a full year of new-employee
training programs.
•	In addition to work-related training, DBJ provides not only
supplementary programs for self-improvement but also askills development program, extensive in terms of both quality and quantity, that provides rank-based training forrequired subjects whenever necessary.
•	Opportunities to study abroad at overseas universities andtraining systems are made available for developing global
human resources. DBJ also operates its own leadershiptraining program (entirely in English) in collaboration with top
overseas universities for young employees and­management-level employees.
•	Almost all training has been moved online due to the COVID19 pandemic, and DBJ continues to proactively enhance theflexibility and sophistication of classroom training
environments.
•	DBJ plans to develop and advance initiatives to prepare­personnel for engaging in investment and loan activities torealize a sustainable society based on GRIT Strategy.

Corporate Governance

Basic Policy

To promote workplaces where diverse human resources canwork together, DBJ encourages mutual understanding andtakes steps to improve the productivity of each employee.
•	Improve productivity and resilience with systems that facilitate flexible work-styles, such as working from home, andflexible work schedules with core hours. Ensure a system
where work is pursued while placing the highest priority on
the health and safety of our executives and employees,
allowing work-from-home arrangements and staggered
working hours to mitigate the spread of COVID-19.
•	Hold seminars with care experts, to enhance work and leavesystems for child-rearing and elderly care—for example,
maternity leave, reduced working hours, and childcarep­ articipation leave.
•	Create and distribute a guide to balancing work with childrearing and elderly care, and holds “iku-boss” seminars formembers of management to enable them to support
employees using these systems while improving team­productivity. Also hold seminars for furthering understandingof people with disabilities and promotes the building of cooperative relationships among staff to further mutual
understanding.
•	Continue to advance initiatives while planning new interactive
events and seminars about career development to advancethe empowerment of women in the workplace.
•	Support the physical and mental well-being of its officers andemployees with courses about self-resilience, as well as byoffering a counseling system staffed by outside professionals,
in addition to periodic health checkups.

Strategy

The DBJ Group develops human resources through practicalon-the-job training and extensive training opportunities.
•	Employees are strategically rotated so that they steadily
develop highly specialized skills by gaining practical anddiverse experience and broad perspectives in multiple
departments and outside institutions.*

Diversity Management and Productivity Improvements

Value Creation Story

Human Resource
Development

On-thejob
training

45

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46

Development Bank of Japan Inc.
Integrated Report 2021

Development Bank of Japan Inc.
Integrated Report 2021

Management Foundation Strategy

Knowledge and Collaboration

Specific Initiatives to Improve the Value ofIntellectual Capital
Knowledge

https://www.dbj.jp/en/investigate/

Processes
Digital Strategy Office
In fiscal 2020, the Digital Strategy Office was created under the
Corporate Planning & Coordination Department consisting ofmembers across departments. Based on the newly drawn up
DBJ–DX Vision, the Digital Strategy Office is in charge of digitalizing in-house business processes and solving the issues ofcustomers. We endeavor to provide added value to customers
by advancing efforts regarding the digital transformation ofsociety, including updating frameworks for selecting new digital
tools and training the personnel needed to advance digitaltransformation.

Strategy

Industry Analysis
The role of the Economic & Industrial Research Department is
to analyze and disseminate information on economic andindustrial trends in Japan and overseas, including macroeconomic trends and trends in key industries, and to support
investment activity. DBJ proactively works to accumulate anduse intellectual capital, including information on recent trends insuch areas as big data, AI, computer-assisted software engineering (CASE), virtual and augmented reality, and fintech.
In April 2017, DBJ established the post of chief research
officer, who is in charge of the Sustainability Planning &Intellectual Capital Support Department. In June 2021, theEconomic & Industrial Research Department was newly created under this structure, and its name was changed to theChief Research Office.

formation of a sustainable economy and society from an academic and liberal standpoint. In recent years, the institute has
expanded the means for creating intellectual capital by establishing new committees for researching sustainability, publishing research papers through Springer, an international
academic publishing company, and holding international academic conferences in conjunction with overseas academic
journals and think tanks.

Value Creation Story

Knowledge andCollaboration

To improve intellectual, relationship, and social
capital using the management resources of the
DBJ Group, we are accumulating knowledge
while advancing collaboration with various
stakeholders.

47

Please refer to the DBJ website for more information.

Basic Policy
Intellectual Capital

Processes
We will improve operations, including via investments in information and communication technology (ICT), by clarifying andsimplifying business processes from the customer’s standpoint
in order to rapidly and properly address customer needs.

The DBJ Group defines social capital as a resource sharedacross society that underpins the foundations of market economics. Increasing the value of social capital is a basic tenet
for realizing a sustainable society. DBJ specifically engages inunique initiatives within the context of (1) the natural environment, (2) social infrastructure, and (3) system capital.
Social capital(1) Naturalenvironment

Forests, mountains,rivers, lakes, soil, air

Example of initiatives

Environmentally Rated
Loan Program
DBJ Green Building
Certification
Loans and investments
for infrastructure andindustrial projects
BCM Rated Loan
Program(3) System
capitalStabilization and stimulation of the financial
system, development
and invigoration offinancial markets

Crisis Response
Operations
Supply of risk capitalSocially responsible
investing bondissuance

Capital Investment Planning Survey
With a history of more than 60 years (since 1956), DBJ’s
Capital Investment Planning Survey looks at trends in corporate
capital investment in Japan as well as corporate activities
based on the “broad definition of investment,” including capital
investment overseas, and spending on R&D, M&A, and humanresources. The results of the survey are used for many purposes, such as furthering education at universities andresearch at R&D organizations, in addition to serving as a reference for national economic policy and corporate planning.
Research Institute of Capital Formation
The Research Institute of Capital Formation (RICF) was established in 1964 with Dr. Osamu Shimomura, who advocated forthe principles behind Japan’s post-1940s, high economic
growth, as its first executive officer. The institute serves as avenue for creating intellectual capital through cooperation andcollaboration between DBJ and external experts at universities
and other organizations. Its research includes a focus on the

Collaboration and Dialogue with Stakeholders
Customers• Provided DBJ Sustainability Certification Loan programs• Held a business plan competition for women• Provided platforms via DBJ Connect• Supported innovation with iHub

Financial institutions• Collaborated with LTIC• Coordinated operations with Bridges FundManagement Ltd. in the United Kingdom

Government• Participated in high-level panel about ESG finance• Participated in TCFD scenario analysis support project

Research institutions• Held DBJ Academy at RICF

Participation andassessment of outside initiatives

Corporate Data(2) Social
infrastructure

Energy, transportation,
urban infrastructure,industrial value chains

Relationship Capital
Collaboration
The DBJ Group has built diverse networks with customers,
financial institutions, investors, and national and local government agencies for the purpose of exchanging information andavoiding conflicts of interest. The DBJ Group utilizes its unique
networks to identify issues affecting the economy and society
and to conduct investment and loan operations. We aim to
maintain our reputation and improve our brand value throughthe services we provide to customers.

Details

2050 Growth Strategy Headquarters Meeting
To achieve the GRIT Strategy outlined in the Fifth Medium-Term
Management Plan, in the fiscal year under review, DBJ set up
the 2050 Growth Strategy Headquarters Meeting as a crossdivisional assembly, including members of management.
The aim of this action is to advance initiatives through collaboration across existing organizational boundaries by engaging in discussions and through the sharing among departmentsof the latest trends and knowledge necessary to promote
Green, Resilience & Recovery, Innovation, and Transition /Transformation initiatives for society and customers. (In thefiscal year under review, the topics discussed included transition finance, ESG real estate, and carbon pricing.)

Concrete Measures to Increase the Value ofRelationship and Social Capital
Corporate Governance

Knowledge
We strive to improve skills as a core element of operations necessary to differentiate our business model through surveys,
research, analyses, and risk management centered on industry.

Social Capital

DISCLOSURE INSIGHT ACTIONADFIAPfinancing sustainable development

48

Development Bank of Japan Inc.
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Development Bank of Japan Inc.
Integrated Report 2021

Taking the Initiatives to Spread PFS and SIB that Solve Social Issues

Management Foundation Strategy

In 2011, the DBJ Women Entrepreneurs Center was launchedto provide comprehensive support, including entrepreneurial
know-how and networking opportunities, to nurture growthbusinesses led by women from new vantage points that couldchange society and the economy for the better. As a part ofthese efforts, DBJ has held a business plan competition eighttimes since 2012 for women entrepreneurs.
In the eighth competition, first-place awards were created inthree fields: Excellent Social Design Award, Excellent Growth
Potential Award, and Excellent Regional Impact Award. Fromamong these categories, the DBJ Women Entrepreneurs Prize
recipient is chosen. Excellent new business ideas are awarded
business grants of up to ¥10 million. After the competition finishes, the winners are connected with outside experts andexperienced entrepreneurs who help them turn their businessplans into reality by supporting the growth and development of
their business ideas.
More than 2,500 business plans have been submitted overthe past eight competitions. Some of the winners’ and finalists’competition plans have gone on to played a role in expanding
their respective entrepreneurs’ operations. DBJ also assists
other initiatives to support women entrepreneurs in regional
locations, helping expand thebreadth of women
entrepreneurs.

Beginning in June 2017, at the suggestion of our young
employees, we launched DBJ Connect in collaboration with
Creww, a company that operates the largest start-up community in Japan.
DBJ Connect is a program whereby DBJ facilitates all of thenecessary processes for collaboration between start-ups andmajor and mid-tier corporate customers. When major and midtier corporate customers evaluate starting a new business,start-ups are solicited to provide ideas for business collaboration over the internet to solve issues related to processes,
know-how, ideas and human resource shortages, for example.
DBJ Connect aims to maximize not only potential outcomesin short periods of time but also human resources as the various parties aim to start their experimental projects.
In fiscal 2020, the Hokuriku Start-Up Program attracted
more than 50 proposals from start-up firms, and five of these
proposals turned into collaborations between startups and Ryoki Kogyo Co.,
Ltd. and Being Holdings
Co., Ltd.

https://dbj-i.net/ja

Along with the Japan Economic Research Institute, DBJ seeks
to spur innovation through iHub and“value training” activities. By using its
impartial position and broad network,
DBJ aims to resolve social issues
through logical and innovative business solutions.

https://www.jeri.or.jp/sctm/about/ihub.php
Please refer to the DBJ website for more information (Japanese only).

PFS and SIB Scheme
SIB
Financial
institutions, etc.

(2) P rovision ofcapital(6) Reimbursementof payment
based onoutcomePFS
Privatecompanies(3) P rovision ofservices
Servicebeneficiaries(1) Pay-for-success
contracts
Government(5) Payment based on
outcome(4) Evaluation andreport of outcome(4) Evaluation andreport ofoutcomeThird-party
evaluation agency

Initiatives to Date
DBJ views PFS and SIB as important means of public–private collaboration to solve social issues. Through market research and thedisclosure of information inside and outside Japan, DBJ has built networks with entities in the PFS and SIB market, including national
and local governments, intermediate support organizations, service providers and private-sector companies, and financial institutions. Here, we introduce two major initiatives in this field.
Entered into a Strategic Partnership with Bridges Fund Management (the U.K. Impact Investor)

In December 2016, DBJ and DBJ Asset Management Co., Ltd.
became signatories of the United Nations–supported Principles
for Responsible Investment (PRI) and have served as membersof the PRI Infrastructure Advisory Committee since February
2018. DBJ is also a member of the Long-Term Investors Club(LTIC), an international group of investors that emphasizes
investment activities with long-term time horizons. In May 2019,with Japan Bank for International Co-operation, DBJ held anannual meeting and sponsored events to exchange opinionswith financial institutions from G20 countries. Furthermore, DBJ
proactively participates in and contributes to outside initiatives
that promote sustainability management, as an investor
member of the Global Real Estate Sustainability Benchmark, aparticipant in high-level panels on ESG finance at the Ministryof the Environment, as well as a signatory to the Principles for
Financial Action for the 21st Century and chair of its Working
Group on Savings, Lending, and Leasing Operations.
In February 2019, DBJ received an award from the Associationof Development Financing Institutions in Asia and the Pacificrecognizing its participation in outside initiatives, specifically its
efforts in health management in February 2018 and its initiatives to address natural disasters and climate change.

In November 2019, DBJ signed a business cooperation agreement with Bridges Fund Management Limited(Bridges) in the U.K. to build a strategic partnership and invest in the Bridges Social Outcomes Fund II, afund that invests in SIBs.
Bridges is a major fund management company in the U.K. that specializes in social impact investments,
aimed at creating positive economic returns and social impacts. The U.K. has the largest number of SIB projects in the world. As an investor, Bridges provides not only capital but also support for putting together andmanaging projects for the successful achievement of key performance indicators. This innovative know-how
should bring a wealth of SIB opportunities in Japan, and DBJ plans to draw on this expertise through thefinancing of projects and cooperation on the operational side.

SIB for the prevention of mental
health and healthcare maladies
among elderly people in the U.K.

Launched PFS and SIB Conference
DBJ held PIF and SIB Workshops in collaboration with Social Value Japan, Social Innovation and
Investment Foundation (SIIF), and Sumitomo Mitsui Banking Corporation.
These workshops were made possible thanks to the relationships DBJ has cultivated withnational and local governments, investors, foundations, and other entities. A total of 56 companies
and groups participated as committee observers, including the Cabinet Office, the Ministry of
Economy, Trade and Industry (METI), the Ministry of Justice, 10 local governments, and seven financial institutions. Held three times between October 2020 and January 2021, the workshops provided a venue for lively discussions about PFS and SIB issues and future initiatives in Japan.

Corporate Data

DBJ iHub (DBJ innovation Hub)action plan calls for promoting the use of PFS and SIB in threepriority fields: healthcare, nursing care, and crime prevention.
The Basic Policy on Economic and Fiscal Management andReform 2021 (June 18, 2021, Cabinet decision) also clearlycalls for expansion in PFS and SIB initiatives.

Corporate Governance

Entrepreneurs Center (Japanese only).

Pay-for-success (PFS) contracts are subcontracts that pay preset amounts linked to the outcome of a project, as designatedby national or local governments. Social impact bonds (SIBs)
are a subset of PFS associated with the allocation of privatesector funds to social projects.
PFS and SIB comprise a new framework for private-sector
collaboration to solve social issues faced by national and local
governments that lead to new solutions that leverage theknowledge of private companies and private-sector financing,while keeping government expenditures in check.
PFS and SIB have gained traction overseas, mainly in the
U.K. and the U.S. In Japan, the Cabinet Office drafted theAction Plan for the Promotion of Pay-For-Success Contracts
with Private Service Providers (2020) based on the Growth
Strategy Action Plan (June 21, 2019, Cabinet decision). This

Please refer to the DBJ website for more information (Japanese only).

Participation in and Evaluation of Outside Initiatives

Please refer to the DBJ website for more information about the DBJ Women

What are PFS and SIB?

Strategy

DBJ Connect

Value Creation Story

DBJ Women Entrepreneurs Center (DBJ-WEC)

https://www.jeri.or.jp/wec/

49

PFS and SIB Study Group

Aiming to Further Spread PFS and SIB
Utilizing its diverse networks and knowledge, DBJ intends to share information regularly and provide capital and assistance for theformation of individual PFS and SIB projects. DBJ will help solve social issues regionally while contributing to the growth and invigoration of this market by promoting Japanese versions of PFS and SIB contracts.

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Development Bank of Japan Inc.
Integrated Report 2021

Corporate Governance

51

Corporate Governance overnance Suited to Our Unique Business Model and Dialogue withG
Stakeholders

Message from the Chairman

Creation of a Unique Business Model
After the Japanese government declared the COVID-19
pandemic a crisis in March 2020, as a designated financial
institution the DBJ Group concentrated on Crisis Response
Operations to address the impacts of the pandemic.
In light of the requests being made by the government andthe increasingly severely challenging business environment forcompanies during the persistent pandemic, we temporarily
strengthened our support for businesses in sectors that havebeen hit hard by the pandemic, such as the hospitality sector.
While continuing to concentrate on Crisis Response
Operations during the COVID-19 pandemic, DBJ will pursue
innovative ways to provide financing from a customer perspective based on its GRIT Strategy (see page 17), which sets
out the priority fields the DBJ Group is focusing on under its
Fifth Medium-Term Management Plan to realize a sustainable
society in the future.

supply of risk capital, in an effort to advance sustainability
management and maintain a balanced value creation process.
As the social significance of balancing these two types ofvalue increases, we will continue making every effort toengage in dialogue with our diverse stakeholders and ensure
robust and effective corporate governance, based on thenotion that nothing is more important than embodying bestpractices that will continue to earn us the trust of our customers and society.

Corporate Data

The DBJ Group practices sustainability management in accordance with the Development Bank of Japan Inc. Act, balancing economic and social value with the aim of building asustainable society. We supply risk capital to forward-looking
initiatives through our Special Investment Operations programand collaborate and cooperate with private financial institutions to stimulate new flows of risk capital in Japan. DBJ’s
investments and loans in new fields help strengthen Japan’s
economic competitiveness. We also address local issues
through risk capital supplied through joint funds created with
regional financial institutions.
Furthermore, DBJ functions as an emergency supplier ofcapital for responses to natural disasters and other crises. In
times of international financial turmoil, and following the Great
East Japan Earthquake, the Kumamoto earthquakes, andother events calling for rapid influxes of capital, DBJ has been
there to provide relief.

Given the adoption of the Sustainable Development Goals(SDGs), the Paris Agreement, and other recent initiatives, the
DBJ Group established the Sustainability Committee to deal
with the growing need to review corporate management froma sustainability standpoint. In fiscal 2020, directors engaged ininvigorating discussions about the DBJ Group’s initiatives
related to the global agenda for ESG and building a sustainable society while recognizing the impact from the COVID-19
pandemic. These discussions were reflected in the formulationof the Fifth Medium-Term Management Plan. In fiscal 2021,
we plan to discuss DBJ Group initiatives connected to theenvironment and society, including our approach to energy
and climate change–related issues, from a medium- to longterm perspective.
To realize a sustainable society while balancing economic
and social value, the DBJ Group offers solutions to issues
faced by society and by our customers. The Group has continued to create innovative business models, centered on the

Corporate Governance

A Value Creation Process That Balances Economic and Social Value

Strategy

deliberations by the Special Investment Operations Monitoring
Board are debated by the Advisory Board, an advisory bodyto the Board of Directors comprising outside experts anddirectors in fields including manufacturing, infrastructure,regional communities, and finance (see page 53). The Advisory
Board provides valuable ideas on matters concerning thesafeguarding of proper competition with private financial institutions and the DBJ Group’s management plans. In my view, adistinct aspect of corporate governance at the DBJ Group is
its continuous reassessment of its unique value creation process while engaging in dialogue with diverse stakeholders.
Living up to the trust placed in us by society, we want tokeep our initiatives one step ahead of the times, especially inregard to the supply of risk capital, and this means ensuringthat we operate in conformity with the Companies Act. For
this purpose, the Board of Directors formulated the Basic
Policy for Internal Control, which positions legal compliance,risk management, and internal audits as important subjects for
management.

Value Creation Story

With ongoing efforts tostrengthen governance,
DBJ contributes to sustainablegrowth through an innovative
process of value creation.

In order to continue playing this unique role, DBJ must haverobust corporate governance, ensure transparency in management, and consider the opinions of outside experts. To
realize this aim, we have created the Operations Audit
Committee, the Compensation Committee, and the Personnel
Evaluation Committee as advisory bodies to the Board of
Directors. Listening to the views of our stakeholders is imperative to strengthening this framework.
It is essential that DBJ collaborate and cooperate withrather than compete with private financial institutions. We holdregular events for this purpose, usually twice a year, involving
discussions with representatives of such institutions. We havealso created the Special Investment Operations Monitoring
Board (see page 53) as an advisory body to the Board of
Directors. The board meets twice a year to discuss and evaluate the status of the Bank’s business performance, as well as
its complementing and encouraging of private business andmaintenance of non-competitive relationships.
The opinions we obtain both through our outreach to private financial institutions and through the outcomes ofChairmanAugust 2021

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Development Bank of Japan Inc.
Integrated Report 2021

Corporate Governance

DBJ is governed by the Development Bank of Japan Inc. Act (the DBJ Act) in accordance with the following objective.

Development Bank of Japan Inc. (hereinafter referred to as the “Corporation”) shall be a joint-stock company (kabushiki-kaisha)
whose objective is to contribute to the smooth supply of funds to those needing long-term business funds, as well as to thesophistication of financial functions.

management and deliberate and evaluate business results,
including consistency with the policy objectives of Special
Investment Operations, ensuring that appropriate competitive
relations are maintained with private financial institutions.
DBJ’s Corporate Governance System
A company with a board of
directors and company auditors(Audit & Supervisory Board)

Institutional design configuration

10

In pursuit of sustainability management and DBJ’s corporate
objectives, the following committees have been established asadvisory bodies to the Board of Directors for the purpose ofmaintaining transparency in management and to reflect theknowledge of outside experts.

(2)
12
5
(3)

Operations Audit Committee

16

Adoption of executive officer system

Yes

Accounting auditor

Deloitte Touche Tohmatsu LLC

Overview of DBJ’s Corporate Governance System• Appointment and dismissal of representative members of the Board of Directors andAudit & Supervisory Board members

Audit & Supervisory
Board members,
Audit & Supervisory Board

Compensation
Committee• Mergers, corporate splits, and dissolutions

Executive Committee

AuditsSpecial Investment Operations
Monitoring Board

Advisory Board

Decision-making
bodies

Subsidiaries

The Personnel Evaluation Committee, composed of outside
members of the Board of Directors and other outside experts,
evaluates personnel proposals on the selection of members of
the Board of Directors and Audit & Supervisory Board
members.

Internal
Audit Department

Advisory Board• Basic policy on business plans, redemption
plans, and fund procurement

Personnel Evaluation Committee

Cooperation
Reporting

Personnel Evaluation
Committee• Disposition of surplus funds

Departments

Accounting auditor

Deliberative
bodiesGeneral Risk
Management
Committee

Committee on
Investment and
Loan Decisions

New Operation
Screening
Committee

Advisory Panelon Investments
and Loans

Sustainability
Committee

Investment
Management
Committee

AuditsSince DBJ’s establishment as a joint-stock company in
October 2008, the Advisory Board has been in place as anadvisory body to the Executive Committee, providing advice on
overall management. Revisions in 2015 to the DBJ Act stipulate for an indefinite period obligatory measures to be considered—in particular, requiring that DBJ conduct its operations ina manner that would not obstruct appropriate competitive relations with other entities. Accordingly, this board is positioned

The Boston Consulting Group K.K. Co-Chairperson

Masayuki Oku

Honorary Advisor of Sumitomo Mitsui Financial Group, Inc.

Kazuaki Kama

Senior Advisor, IHI Corporation

Katsunori Nakanishi

Chairman and CEO, The Shizuoka Bank, Ltd.

Yoshizumi Nezu

President, Tobu Railway Co., Ltd.

Outside Members of the Board of Directors
Akio Mimura

Honorary Chairman of Nippon Steel Corporation

Kazuo Ueda

Professor, Dean of Faculty of Business Studies at
Kyoritsu Women’s University

Special Investment Operations Monitoring Board
One of the measures of the 2015 revisions to the DBJ Act wasin regard to Special Investment Operations. The act stipulates
the establishment of a Special Investment Operations
Monitoring Board as an advisory body to the Board of
Directors. This monitoring board is tasked with deliberating
projects and evaluating their performance in terms of appropriateness against policy objectives and with emboldening private-sector enterprises and complementing their operations
while maintaining appropriate competitive relations. This board,whose members include outside experts in fields such as manufacturing, infrastructure, regional communities, and finance,
convened twice during the fiscal year ended March 31, 2021.
Moreover, in order to examine whether appropriate competitive relations with other entities are being maintained, roundtable discussions are held regularly with the Japanese Bankers
Association, the Regional Banks Association of Japan, and theSecond Association of Regional Banks, including these entities’ private financial institution members. Each group met
twice in fiscal 2020, for a total of six meetings. Disputes andopinions raised in these meetings are reported to and deliberated by the Advisory Board and the Special Investment
Operations Monitoring Board.
Outside Experts
Hideharu Iwamoto

Vice Chairman & Senior Executive Director of Japanese
Bankers Association

Masayuki Oku

Honorary Advisor of Sumitomo Mitsui Financial Group, Inc.

Katsunori Nakanishi

Chairman and CEO, The Shizuoka Bank, Ltd.

Takashi Yamanouchi Advisor, Mazda Motor Corporation
Keisuke Yokoo

President, Member of the Board
Chief Executive Officer, Japan Investment Corporation

Corporate Data

Board of Directors

The Compensation Committee, the majority of which consistsof outside executives, considers the type of executive compensation structure that befits DBJ from the standpoint of ensuringtransparency and objectivity regarding compensation.

ReportingOperations Audit
Committee• Amendments to Articles of Incorporation

ALM & Risk
Management
Committee

The Board of Directors has established the Operations Audit
Committee, delegating to this body the authority to deliberate
important matters related to internal audits. This committee
met two times during the fiscal year ended March 31, 2021.
Compensation Committee

General Meeting of
Shareholders• Concurrent positions as members of theBoard of Directors

Advisory Bodies to the Board of Directors

Reiko Akiike

Corporate Governance

Number of members of the Board of
Directors Of whom are outside members of theBoard of Directors
Number of Board of Directors’
meetings in fiscal 2020
Number of Audit & Supervisory Board
members Of whom are outside Audit &Supervisory Board members
Number of Audit & Supervisory Board
meetings in fiscal 2020

Outside Experts

Strategy

DBJ is working to enhance its unique governance system in
addition to usual management supervision as a company witha board of directors and company auditors (Audit &Supervisory Board), through a business model built upon features such as integrated investments and loans and proper
execution of the preceding objective, in order to raise the valueof tangible and intangible management resources to beinvested and to realize sustainable management that aims forboth economic and social value.
Specifically, the 2015 revisions to the DBJ Act establishedSpecial Investment Operations and obligatory measures to beconsidered, requiring that DBJ conduct its operations in amanner that does not obstruct appropriate competitive relations with other entities, in particular, applying these requirements to the Advisory Board, made up of outside experts andoutside members of the Board of Directors, and the Special
Investment Operations Monitoring Board, composed of outside
experts, which function as advisory bodies to the Board of
Directors. These bodies provide advice on DBJ’s overall

The Audit & Supervisory Board comprises five members.
The Companies Act prescribes that a majority of Audit &Supervisory Board members be outside members (in DBJ’scase, three of the five). DBJ offices contribute three members(two members proper to DBJ and one an outside member).
Also, DBJ has created the Audit & Supervisory Board Office,which, under the board’s direction, assists board members,
including outside members, in performing their duties. The
Audit & Supervisory Board and Audit & Supervisory Board
members audit the execution of duties by members of theBoard of Directors, based on their audit policy and audit plans.
Audit & Supervisory Board members attend Board of
Directors’ and other important meetings and may query the
execution of business by members of the Board of Directors,
peruse documents, and conduct branch audits.

anew as an advisory body to the Board of Directors. As one of
its roles, even more than before, the Advisory Board is tasked
with deliberating and evaluating important affairs related toensuring that appropriate competitive relations are maintainedwith private financial institutions.
This board convened twice during the fiscal year ended
March 31, 2021. It is composed of the following outside members of the Board of Directors and outside experts in fields
including manufacturing, infrastructure, regional communities,
and finance.

Value Creation Story

Article 1

Matters requiring authorization ofcompetent minister

Corporate Governance	Audit & Supervisory Board Members,
Audit & Supervisory Board

Basic Position on Corporate Governance

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Corporate GovernanceCorporate Governance

Executive Compensation

The Board of Directors has vested in the Executive Committee decision-making authority regarding the execution of business.
Accordingly, the Executive Committee makes important management decisions. The committee met 34 times during the fiscal year
ended March 31, 2021.

DBJ’s Compensation Committee is an advisory body to theBoard of Directors. It deliberates on the compensation structure for members of the Board of Directors and evaluates the
propriety of the compensation structure for the Company. The
majority of its members are outside executives.
DBJ takes the following basic approach to executive
compensation.
• Compensation should reflect social trends in regard to executive pay.
• Compensation should provide motivation for initiatives aimed
at realizing economic and social value during each fiscal year
and in the medium to long term.

Committees under the Executive Committee
Name

Role

This committee deliberates and makes decisions pertaining to portfolio risk management and asset–liability management.

General Risk Management
Committee

This committee deliberates and makes decisions on important items related to operational risk management, system risk
management, legal compliance, responses to antisocial forces, client protection management, and other important items.

Committee on Investment and Loan
DecisionsThis committee handles, deliberates, and makes decisions related to investments and loans, overseas business strategy, andoperations and management conditions.

New Operation Screening Committee

This committee deliberates and makes decisions on the commencement of initiatives involving new businesses.

Advisory Panel on Investments and
LoansThis panel handles the advance deliberation on and monitoring of investments and loans as well as deliberations on overseas
business strategy and operations and management conditions.

Sustainability Committee

This committee deliberates on items related to both economic and social value as well as dialogue with stakeholders.

Investment Management Committee

This committee monitors investment projects and enhances the monitoring system, as well as discusses planned proposals forinvestment policies.

Accounting Audits

DBJ has established the Internal Audit Department under the
direct supervision of the president and CEO of DBJ and independent of other operating departments. The department
conducts inspections to ensure the appropriateness and effectiveness of internal controls, including overall operational compliance and risk management, and performs evaluations andrecommends improvements. The Operations Audit Committee
deliberates and decides audit plans, audit reports, and otherimportant matters related to internal audits, and this information is reported to the Board of Directors. As of June 24, 2021,
22 people belonged to the Internal Audit Department.

DBJ has in place an agreement whereby Deloitte Touche
Tohmatsu LLC conducts accounting audits as its accounting
auditor.
Three-Pronged Auditing Approach
DBJ’s Audit & Supervisory Board members, the Internal Audit
Department, and the accounting auditor periodically and asnecessary exchange opinions and information, and communicate in an effort to ensure effective and appropriate audits.

The General Meeting of Shareholders held on June 29,
2017, passed a resolution that sets ¥270 million as the maximum annual amount for total compensation paid to membersof the Board of Directors. The Company’s first General Meetingof Shareholders held on September 22, 2008, passed a resolution that sets ¥80 million as the maximum annual amount for
total compensation paid to Audit & Supervisory Board members. The Articles of Incorporation set the number of Audit &Supervisory Board members to five or fewer.

The Compensation Committee was established in 2008
to ensure transparency and objectivity in the process for­determining compensation, and a majority of members of
the Compensation Committee comprises outside executives.
This composition allows independent outside executives to be
involved and give relevant advice.
Meetings of the Compensation Committee in fiscal 2020
Number of meetings held in
fiscal 2020
Compensation Committee

Members of the Compensation Committee

fiscal year ended March 31, 2020) is used as the performance indicator because it most accurately reflects DBJ’s
performance.
Please refer to the links below for detailed information regarding DBJ’s corporate governance.

https://www.dbj.jp/ir/financial/report.html

Internal Control System Basic Policy (Japanese only)
https://www.dbj.jp/co/info/governance_policy.html

Policy on Sustainability
https://www.dbj.jp/en/sustainability/management/regular.html

Compliance with Japan’s version of the Stewardship Code (Japanese only)
https://www.dbj.jp/co/info/stewardship.html

Below is a description of the compensation structure formembers of the Board of Directors.
Compensation for full-time members of the Board of
Directors consists of fixed compensation, executive bonuses,and executive retirement benefits. To maintain their independence, part-time members of the Board of Directors receive
fixed compensation alone.
Compensation for full-time Audit & Supervisory Board members comprises fixed compensation, and executive retirement
benefits. Compensation for part-time Audit & Supervisory
Board members consists solely of fixed compensation.
The amount of compensation paid to members of the Boardof Directors is determined after deliberation by the Board of
Directors, within the maximum amount approved at theGeneral Meeting of Shareholders following discussions by theCompensation Committee. Compensation amounts are basedon the position and responsibilities of each member of the

Chairman	Yasushi Kinoshita(head of the committee)

President

Hajime Watanabe

Outside member of the Board of
Directors

Akio Mimura

Outside member of the Board of
Directors

Kazuo Ueda

Outside Audit & Supervisory Board
memberToshio Yamasaki

Compensation paid to DBJ’s members of the Board of Directors
and Audit & Supervisory Board members in fiscal 2020
(¥ million)

Category

Number of people

Compensation, etc.

Members of theBoard of Directors(Excluding Outside
Members of theBoard of Directors)

10

202

Audit & Supervisory
Board members(Excluding Outside
Audit & Supervisory
Board Members)

3

39

Outside Executives

7

63

Total

20

305

Notes: 1. C ompensation amounts include provisions to reserves for executive
retirement benefits.
2. Numbers
of persons to be paid and compensation amounts include two
members of the Board of Directors and three members of Audit &Supervisory Board members who retired during fiscal 2020.

Corporate Data

Securities filings (state of corporate governance, etc.) (Japanese only)(3) Executive retirement benefits are paid out upon retirement in an amount reflecting successful service over the
longer term.

2
Corporate GovernanceInternal Audits

In accordance with this approach, DBJ provides compensation to its executives in three forms: fixed compensation, executive bonuses, and executive retirement benefits.
(1) Fixed compensation is paid monthly in an amount basedon the executive’s position.
(2) Executive bonuses are distributed after taking into consideration the performance of each member of the Boardof Directors in carrying out their duties during the fiscal
year. Bonuses start with a standard amount based on theposition of the member of the Board of Directors.
Bonuses also include a quantitative assessment portion
determined based on a preset distribution percentagethat reflects the achievement of the consolidated net
income target, as well as a qualitative assessment portion determined based on a preset distribution percentage that comprehensively considers each executive’sachievement of performance targets in their businessdivision. Consolidated net income (¥51,518 million in thelimit the number of directors to 13 or less.

Strategy

ALM & Risk Management Committee

Board of Directors, with due consideration given to social
trends, DBJ’s financial performance, and other standards balanced against employee salaries. The Articles of Incorporation
Value Creation Story

Executive Committee

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Development Bank of Japan Inc.
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Members of the Board of Directors, Audit & Supervisory Board
Members, and Executive Officers (as of the end of August 2021)



57

Members of the Board of Directors, Audit & Supervisory Board Members, and Executive Officers

Members of the Board of Directors

Value Creation Story

President and CEO

Deputy President

Member of the Board of Directors,
Managing Executive Officer

Member of the Board of Directors,
Managing Executive Officer

Yasushi Kinoshita

Hajime Watanabe

Seiji Jige

Makoto Anayama

Norifumi Sugimoto

1979: Joined the Ministry of Finance2013: Vice-Minister of Finance2015: Deputy President of DBJ
2018: Chairman of DBJ

1981: Joined Japan Development Bank
2008:	General Manager,
Head of Urban Development Department
2009:	Executive Officer, Head of Corporate Planning &Coordination Department
2011: Director and Managing Executive Officer of DBJ
2015: Deputy President of DBJ
2018: President and CEO of DBJ

1986: Joined Japan Development Bank
2011: Executive Officer in Charge of Special Missions
2013:	Executive Officer, Head of Corporate Planning &Coordination Department
2015: Managing Executive Officer of DBJ
2018:	Member of the Board of Directors, Managing
Executive Officer of DBJ
2020: Deputy President of DBJ

In charge of Risk Management Department,
Accounting Department, Credit Analysis
Department, Legal Affairs & ComplianceDepartment, Research Institute of Capital
Formation

In charge of Corporate Planning & Coordination
Department, Information Resources Department,
General Affairs Department
1988: Joined Japan Development Bank
2013: General Manager, Secretariat Office
2015:	Executive Officer, Head of Corporate Planning &Coordination Department
2018: Managing Executive Officer of DBJ
2020:	Member of the Board of Directors,
Managing Executive Officer of DBJ

Corporate Governance

1986: Joined Japan Development Bank
2011:	Head of Economic & Industrial Research
Department
2013:	Executive Officer, Head of Business Planning &Coordination Department
2015: Managing Executive Officer of DBJ
2018:	Member of the Board of Directors,
Managing Executive Officer of DBJ

Strategy

Chairman

Corporate Data

Member of the Board of Directors,
Managing Executive Officer

Member of the Board of Directors,
Managing Executive Officer

Member of the Board of Directors,
Managing Executive Officer

Outside Member of the Board of Directors

Outside Member of the Board of Directors

Shoichiro Kubota

Takeshi Harada

Tsutomu Murakami

Akio Mimura

Kazuo Ueda

In charge of Strategic Finance Department,
Growth & Cross Border Investment Department,
Regional Investment Department, Business
Development Department

In charge of Treasury Department,
Syndication & Credit Trading Department,
Financial Institutions Department

In charge of Business Planning & Coordination
Department

Honorary Chairman of Nippon Steel Corporation,
Chairman of the Tokyo Chamber of Commerceand Industry, Chairman of the Japan Chamber ofCommerce and Industry

Professor and Dean of Faculty of Business Studies
at Kyoritsu Women’s University, Director of Tokyo
University’s Center for Advanced Research in
Finance2008: Outside Member of the Board of Directors at DBJ

2008: Outside Member of the Board of Directors at DBJ

1990: Joined Japan Development Bank
2014: Head of Real Estate Finance Department
2018:	Executive Officer, Head of Growth & Cross Border
Investment Department
2020:	Member of the Board of Directors,
Managing Executive Officer of DBJ

1988: Joined the Ministry of Finance2017:	Councilor of the Cabinet Secretariat
Deputy Director of the Office for the Promotionof Privatization of Postal Services, Cabinet
Secretariat
2019: Director-General, Tohoku Local Finance Bureau
2021:	Member of the Board of Directors,
Managing Executive Officer of DBJ

1988: Joined Japan Development Bank
2012: General Manager, Structured Finance Group
2015: General Manager, Secretariat Office2017:	Executive Officer, Head of Human Resources
Management Department
2019: Managing Executive Officer of DBJ
2021:	Member of the Board of Directors,
Managing Executive Officer of DBJ

Notes:* Of the 15 members of the Board of Directors and Audit& Supervisory Board members, 14 are male and one isfemale, leaving the female to male ratio at 6.7%.
* Standards and policies related to independence in theselection of outside members of the Board of Directors
and outside Audit & Supervisory Board members are
not applicable.
* Akio Mimura, Honorary Chairman of Nippon SteelCorporation, is an outside member of the Board of
Directors of DBJ. DBJ has no special relationship with
Mr. Mimura, and its business with Nippon SteelCorporation is conducted normally. Outside Audit &Supervisory Board member Naoko Saiki is also an outside director of Sojitz Corporation. DBJ has no conflictsof interest with Sojitz Corporation, and its business isconducted normally with the Company.
DBJ has no special-interest relationship with anyother of its outside members of the Board of Directors
or outside Audit & Supervisory Board members.
* DBJ has signed liability limitation agreements with its
outside members of the Board of Directors and Audit &Supervisory Board, based on Paragraph 1, Article 427,of the Companies Act.

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Messages from Outside Members of the Board of Directors

Members of the Board of Directors, Audit & Supervisory Board Members, and Executive Officers

Audit & Supervisory Board Members

Akio Mimura

Leveraging Corporate Governance toHelp Solve Social Issues

Atsushi Kurashige

Shigeru Tamagoshi

Toshio Yamasaki

1986: Joined Japan Development Bank
2010: General Manager, Credit Analysis Department
2011: General Manager, Secretariat Office
2013:	General Manager, Head of Urban Development
Department
2017: Audit & Supervisory Board Member of DBJ

1989: Joined Japan Development Bank
2014: Head of Corporate Finance Department, Division 2
2016: Head of Corporate Finance Department, Division 5
2018:	Executive Officer, Head of Business Planning &Coordination Department
2020: Audit & Supervisory Board Member of DBJ

1982:	Joined The Sumitomo Trust and Banking Co., Ltd.
2017:	President of Sumitomo Mitsui Trust General
Service Co., Ltd.
2018:	Advisor of Sumitomo Mitsui Trust General Service
Co., Ltd.
2018: Audit & Supervisory Board Member of DBJ

Outside Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Masato Dogauchi

Naoko Saiki

Professor, Waseda University, Law School
Senior Counsel, T&K Partners

Visiting Professor, Graduate School of Public
Policy, The University of Tokyo
Outside Director, Sojitz Corporation

CareerApril 1963:	Joined Fuji Iron & Steel Co., Ltd.
April 2003:	Representative Director and President of
Nippon Steel Corporation
April 2008:	Representative Director and Chairman of
Nippon Steel Corporation
October 2008:	Outside Member of the Board of Directors at
DBJ (current position)
October 2012:	Director, Member of the Board, and Senior
Advisor of Nippon Steel & Sumitomo Metal
Corporation
November 2013:	Senior Advisor, Honorary Chairman of
Nippon Steel & Sumitomo Metal Corporation
Chairman of the Tokyo Chamber ofCommerce and Industry (current position)
Chairman of the Japan Chamber ofCommerce and Industry (current position)
June 2018:	Honorary Chairman of Nippon Steel &Sumitomo Metal Corporation(now Nippon Steel Corporation)
April 2019:	Honorary Chairman of Nippon SteelCorporation (current position)

2020: Audit & Supervisory Board Member of DBJ

Executive Officers (excluding those who are concurrently members of the Board of Directors)
Managing Executive Officer

Managing Executive Officer

Executive Officer

Hiroshi Shimizu

Keita Arakaki

Tomoya Sato

Yoshinari Furuta

In charge of Urban Development
Department,
Real Estate Finance Department,
Structured Finance Department

In charge of Corporate Finance
Department, Division 4

In charge of Corporate Finance
Department, Division 5

Head of Credit Analysis Department

Managing Executive Officer

Managing Executive Officer(Head of Kansai Branch)

Executive Officer

Executive Officer

Masao Masuda

Fumiyo Harada

In charge of Kansai Branch,
Chugoku Branch, Shikoku Branch

Head of Business Planning &Coordination Department, Chief
Manager of Crisis Response
Operations Office

In charge of GRIT, Chief Manager of
Sustainability Management Office,Corporate Planning & Coordination
Department

Managing Executive Officer

Managing Executive Officer

Executive Officer

Executive Officer

Masashi Kumagae

Seiji Tomosada

Isao Nishio

Hirofumi Maki

In charge of Planning & Coordination
Department (Regional Business
Planning Office), Economic &Industrial Research Department,
Regional Research & Planning
Department, Hokuriku Branch,
Kyushu Branch, Minami-Kyushu
BranchIn charge of Corporate Finance
Department, Division 3, Sustainable
Solution Department, Hokkaido
Branch, Niigata Branch, Tokai Branch

In charge of Financial Institution

Head of Corporate Planning &Coordination Department

Managing Executive Officer

Executive Officer

Executive Officer

Katsushi Kitajo

Takao Isozaki

Shingo Kobayashi

In charge of Corporate Finance
Department, Division 1 and 2

In charge of Internal Audit

Head of Human Resources
Management Department

Kazufusa Matsushima
In charge of Planning & Coordination
Department (Crisis Response
Operations Office), Corporate Finance
Department, Division 6, Tohoku
BranchToshiyasu Takazawa

Global interest in sustainability, as manifested in ESG and SDGs, has been
growing since the adoption of the Paris Agreement. To attain a carbonneutral and sustainable society, private-sector capital must be deployed alongwith advances in innovation. DBJ has provided solutions in tune with thetimes and constantly evolving social issues, such as by developing its sustainability certification programs and supplying risk capital through collaborative efforts with private-sector companies and financial institutions. We willclosely monitor global trends toward the achievement of a sustainable society, and redouble our efforts to coordinate with stakeholders and achievea balance between social and economic value.
DBJ must continue to carry out these efforts with medium-to-long-term
perspective of facilitating social and economic development and achieving asustainable society. Proper governance is therefore essential. The DBJ
Group’s Advisory and Special Investment Operations Monitoring Boards support the attainment of these goals and underpin DBJ’s unique businessmodel. As a member of the Advisory Board—in addition to my duties as
an outside member of the Board of Directors—I work closely with outside
experts to advise on overall management. I will do my part in pursuing thesustainable social development and sustainability management goals sharedthroughout DBJ.

Outside Member of the Board of Directors

CareerJuly 1980:	Assistant professor at the University of
British Columbia, School of Economics
April 1982:	Assistant professor at Osaka University,
School of Economics
April 1989:	Assistant professor at Tokyo University,
School of Economics
March 1993:	Professor at Tokyo University, School of
Economics
April 1998:	Member of the Bank of Japan’s Policy Board
April 2005:	Professor at Tokyo University,
School of Economics
October 2008:	Outside Member of the Board of Directors at
DBJ (current position)
April 2017:	Professor, Faculty of International Studies,
Head of Office for New Department Planning,
Kyoritsu Women’s University
Director of Tokyo University’s Center for
Advanced Research in Finance(current position)
April 2020:	Professor, Faculty of Business Studies at
Kyoritsu Women’s University (current position)
Dean of Faculty of Business Studies at
Kyoritsu Women’s University (current position)

Corporate DataManaging Executive Officer

Kazuo Ueda

Reinforcing Corporate Governance toAdvance Sustainability Management

Corporate GovernanceOutside Audit & Supervisory Board Member

Strategy

Audit & Supervisory Board Member

I have served as an outside member of the Board of Directors since DBJ
became a joint stock company in 2008.
I am currently a member of the Advisory Board, an independent body thatfacilitates corporate governance by incorporating the opinions of outside
experts into the management of DBJ. In accordance with the amendment of
the DBJ Act in 2015, the Advisory Board is positioned as an advisory body to
the Board of Directors. The role of the Advisory Board is not only to advise
DBJ’s management on balancing economic and social value but also todeliberate on the matter of ensuring suitable competitive relations with private
financial institutions. I believe that the Advisory Board has fulfilled the responsibility of performing checks, from a third-party perspective, on the proper
execution of legally mandated Special Investment Operations, Crisis
Response Operations, collaboration with private financial institutions, andsustainability management by DBJ.
The COVID-19 pandemic has brought to the surface a number of issues
in Japan, such as digitalization, the risk of over-concentration in Tokyo, andstrengthening the supply chains of corporations. A variety of social changes
are needed to address these issues, requiring increasing amounts of risk capital from DBJ. To ensure that we meet these expectations with consistency,
while realizing both economic and social value, I will continue to fulfill my
responsibilities on the governance front in facilitating essential dialogue andcooperation with stakeholders.

Outside Member of the Board of Directors
Value Creation Story

Audit & Supervisory Board Member

2020: Audit & Supervisory Board Member of DBJ

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ComplianceCompliance

Basic StanceCompliance Practices

General Risk
Management
Committee

Executive Committee

Relevant departmentsin charge of compliance

Compliance officers at all departments
and Group subsidiaries

Audit &
Supervisory
Board Member

Measures to Prevent Insider Trading

Management of Conflicts of Interest

In the provision of various financial services including­investments and loans, the DBJ Group believes that complying with insider trading regulations is essential to maintaining
trust. For example, we have created rules for employees and­executives to follow when trading in securities. Moreover, DBJ
has established systems for preventing insider trading, as­demonstrated by our formulation of strict procedures for­confirming and executing transactions in our investment­operations. In research operations, we manage and handle
corporate information carefully.

When providing customers with financing, investment, consulting and advisory service, asset management, and other financial services, the DBJ Group applies systems for identifying
and managing transactions in order to prevent conflicts ofinterest and act fully in the interests of customers, based on
the transaction type and degree of risk. When obtaining consent from customers for a transaction, we provide them accurate and appropriate information.

Elimination of Anti-social Forces
The DBJ Group has a basic policy of not having any relationships with anti-social forces, and resolutely coping with them incooperation with the police and other external institutions. Ourrules and training programs have thus been carefully crafted toprevent relationships with anti-social forces. DBJ thoroughly
assesses and manages this risk for each project and takes
appropriate measures when necessary while communicatingwith special external institutions.

Management of Customer Information
In addition to following legal requirements and rules aboutsharing customer information among Group companies, preventing insider trading, and managing conflicts of interest, the
DBJ Group has created management structures and systems
for handling customer information, with particular attention paid
to minutiae in order to maintain the customer’s trust.

Staff
Regular reporting channel
Internal reporting (Compliance hotline)	Anti-Money Laundering (AML) and Combating the
Financing of Terrorism (CFT) Measures
As it develops business worldwide, the DBJ Group understands the importance of taking measures to prevent international money laundering and the financing of terrorism. In
addition to adhering to laws and regulations, DBJ takes extra
measures to prevent global financial crimes based on the risks
involved. DBJ has systems in place to ensure that proper procedures are taken, periodically conducts risk management
operations, and thoroughly trains its employees and executives. We also strive to continuously improve this structure byevaluating a variety of measures.

https://www.dbj.jp/en/privacy.html
DBJ has created and disclosed the Declaration on Personal
Information Protection for protecting such information. Pleaserefer to the DBJ website for more details about this declaration.
Corporate Data

The DBJ Group has determined basic policies and rules forcompliance, creates and distributes compliance manuals for
employees and executives to follow, and conducts training andexplanatory sessions to spread awareness of compliance.
Each fiscal year, all DBJ Group companies design complianceprograms and evaluate and implement concrete complianceaction plans tailored to their particular business characteristics.
DBJ has established relevant departments that report on thestatus of compliance with laws and regulations to the Executive
Committee and Board of Directors. Compliance officers havebeen assigned to each department to ensure compliance by
employees and executives at each department.
Compliance officers are in charge of internal management
as internal managers and function as contact points for reporting compliance matters while centralizing such matters within

Board of Directors

The DBJ Group has identified “the customer’s perspective” asa key element of its Action Guidelines. By taking the customer’s
perspective, we endeavor to improve customer protections
and convenience. Furthermore, we have created basic policies
for customer protections from the standpoint of ensuring thesoundness and fitness of our operations. Accordingly, we havetaken a management posture for ensuring customer protections. Employees and executives provide support to customers
by explaining and providing appropriate and adequate information to them.

Corporate GovernanceCompliance Framework

Internal Reporting System

The DBJ Group believes compliance with laws and regulations
is essential for maintaining the customer’s trust and ensuring
the soundness and fitness of its business operations. We recognize compliance as one of our most important management
priorities. Employees and executives are keenly aware of DBJ’s
public mission and social responsibilities, as well as initiatives
to mitigate conduct risk. We fairly engage in our business ingood faith and in compliance with not only all laws, regulations
and rules but also social norms, for supplying risk capital or
pioneering initiatives.

Strategy

The DBJ Group is a unique financial group which provides
financing, investment, consulting and advisory services, asset
management, and other various financial services. While reinforcing collaboration within the Group, DBJ creates proactive
and advanced business and core strategies.
As a financial institution, DBJ’s first duty is to address thelegitimate and logical expectations of its customers. Even in
its initiatives in Crisis Response Operations and Special
Investment Operations, DBJ carries out customer-oriented
business conduct. DBJ conducts operations in compliancewith all laws and regulations through appropriate function of
the Three Lines of Defense to mitigate conduct risk. To achieve
our corporate philosophy, all employees and executives
engage in work while pursuing both economic and social value
in accordance with our Action Guidelines, the basis for decisions and behavior by Group employees and executives.

their departments. Through compliance officers, relevant
departments in charge of compliance provide advice and guidance to each department when necessary, with the aim of
ensuring compliance. In order to quickly discover and resolve
any compliance matters, DBJ has set up an internal reporting
channel to relevant departments and Audit & Supervisory
Board members, which circumvents the normal reporting
channels in organizational structures. DBJ has also createdan external reporting channel through a law office.

Customer Protection Management

Value Creation Story

DBJ believes that compliance both is at the heart of our corporate management and complements our business model and strategy
like two sides of the same coin. In addition, compliance risk must be properly managed in our organization’s overall governance andcontrol structure in implementing our corporate philosophy based upon societal demand and expectation. We feel that compliance isachieved when each and every employee and executive actively engages in their work with compliance foremost on their minds.

Business Conduct and Compliance

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Development Bank of Japan Inc.
Integrated Report 2021

Risk Management

Overview of Risk Management System
Board of Directors

Committee on Investment and Loan Decisions
New Operation Screening Committee

Executive Committee

Advisory Panel on Investments and Loans

Asset self-assessments are used to define asset classifications
that will offset recoverability risk or the degree of risk of value
loss based on the borrower rating, the corresponding borrower
Borrower Rating Classifications
Borrower
ratingBorrower category

Sustainability Committee
Investment Management Committee

General Risk Management Committee

Credit risk

Operational risk

Investment risk

System risk

Country risk

Compliance and legal risk

Market risk

Countermeasures for anti-social forces

Market credit risk

Countermeasures for laundering money andfunding terrorist organizations

Liquidity risk

Customer protection management

Comprehensive Risk Management

Normal borrowers

1–8

Borrowers with favorable business conditions who have been confirmed to have no particular
problematic financial circumstances.

Borrowers requiringcaution

9–11

Borrowers in this category are experiencing weak or unstable business conditions, or are having
issues with their finances. These borrowers need to be managed with caution.

Substandard
borrowers

12

Either some or all of the debt of these borrowers requiring caution is under management.

Substandard claims

Borrowers in danger
13of bankruptcy

Borrowers in this category are having financial difficulties but are not bankrupt.
Management improvement plans and the like are progressing poorly, and these borrowers arehighly likely to fall into bankruptcy.

Doubtful claims

Effectively bankrupt
borrowers

14

Although not legally or formally in bankruptcy, these borrowers are experiencing severe financial
difficulties and are realistically falling into bankruptcy as their lack of potential for restructuring
has been confirmed.

Bankrupt borrowers

15

These borrowers are in bankruptcy, legally and formally. Specifically, these borrowers are inbankruptcy or liquidation, under corporate reorganization, bankruptcy proceedings or civil rehabilitation, or have had transactions suspended by a bill clearinghouse.

Credit Risk

Portfolio Management

Investment Policy
The Executive Committee determines our investment policy
following deliberations each fiscal year by the Investment
Management Committee, based on our corporate philosophyof striking a balance between social value and economic value.
This policy takes into consideration the balance in risks andreturns in the overall portfolio, while also reflecting the externalbusiness environment, including changes in market conditions
and industrial structure, and a performance analysis of theexisting portfolio.

Credit Administration of Individual Loans
When making an investment or loan, DBJ examines the entity’s
project viability and the project’s profitability from a fair andimpartial standpoint. Based on the Banking Act and the Act
on Emergency Measures for the Revitalization of Financial
Functions (Act No. 132 of 1998), DBJ carries out independent
asset assessments in an effort to properly grasp credit risk ina timely fashion. The results of self-assessments are subject
to an audit by an auditing corporation and are reported to
management.
The sales and credit analysis departments hold separate
roles in the screening and administering of credit for individual
projects, and each department keeps the operations of theother in check.

Borrower Rating System
DBJ’s borrower rating system measures creditworthiness by
combining an evaluation point rating and a borrower category
rating, with the results quantifying a potential client’s credit
circumstances.
The evaluation point rating selects indicator and evaluation
categories that are common across all industries, scoring thecreditworthiness of the potential borrower quantitatively andqualitatively. On the other hand, the borrower category rating
measures specific items related to the borrower, looking at theborrower’s realistic financial condition, cash flows, and debt
repayment history, generating a comprehensive assessment ofa borrower’s repayment capacity.

Credit Management of Individual Projects

Investment risk refers to the risk of sustaining losses resulting
from a decline in or loss of the economic value of assets due toworsening financial conditions for entities receiving funds andto changing market environments. DBJ’s investments include
the provision of mezzanine and equity financing, particularly tounlisted entities, such as corporations, funds, infrastructure,and real estate. As a source of profits, investments represent
one of DBJ’s most significant risk categories as with credit risk.
DBJ makes investment decisions and manages individual
investments as well as its Bank-wide portfolio accordingly.
Type

Major risks

Returns

Corporate mezzanine
financing

Credit risk, etc.

Dividends, etc.

Corporate investment(including listed shares)

Business risk
Market risk

Capital gains

Real estate and infrastructure, etc.

Risk of change
in asset value
Operating risk at
operating entities

Investment decisions for individual projects are made after exit
strategies are determined in case a downside scenario materializes, and targets are set for returns based on the type ofinvestment, which is also examined for managing credit risk.
In project management, DBJ periodically monitors every
project and has established the Chief Investment Management
Office to enhance monitoring of key projects and improve themanagement of investment risks in the overall portfolio.
Overview of Investment Management System
Executive Committee

Decision on
investment policy
Investment Management Committee

Monitoring
Key projects
Debate overdirection

Deliberation on
investment policy

Income gains

Project information

Monitoring data,
etc.

Chief Investment Office

Loan and Investment
Management Division

Chief Investment
Management Office

Investment
recommendation

Information gathering andhub function

Portfolio management andindividual project monitoring

Corporate Data

Credit risk refers to the risk of sustaining losses resulting froma decline in or loss of the value of assets due to deterioration in
the financial condition of the borrower. DBJ provides corporateloans and non-recourse loans, making credit risk acquisitiona source of profits. As such, it represents a significant risk category, and DBJ conducts credit management of individual projects as well as Bank-wide portfolio management, accordingly.

Claims in bankruptcy,
reorganization claims,
and similar claims

DBJ performs a statistical analysis of data based on borrower
ratings and calculates the loan portfolio’s overall exposure tocredit risk. Credit risk exposure is classified as unexpected loss
(UL), the maximum loss that could be incurred at a certain rateof probability minus the expected loss (EL), the average loss
expected during a specific loan period.
Large borrowers are identified based on standardized loanbalances defined by the borrower’s rating and monitored as
required in accordance with management policies.

Investment Risk
The Committee on Investment and Loan Decisions meets asneeded to deliberate important issues concerning the management and operation of individual projects.
These mutual checking functions serve to ensure the appropriateness of the finance operation and management system.

Normal claims

Corporate Governance

At DBJ, we measure the amount of each type of risk using uniform and logical methodologies to the greatest extent possible, whileconsidering the uniqueness of each risk category. As the sum total of this risk, comprehensive risk is managed within the context ofour risk guidelines. These risk guidelines are determined by the Executive Committee and reflect risk conditions in the existing portfolio and near-term business plans, within the framework for capital allocation based on the amount of our own capital.

Claims classified under the
Financial Revitalization Act

Definition

Strategy

ALM & Risk Management Committee

category, and the collateral or guarantee status. Such assessments help DBJ establish timely and appropriate amortization
schedules and reserve levels.
Value Creation Story

DBJ has a risk management system in place designed tohandle a variety of specific risks, with the aim of maintaining
the soundness and creditability of management as it pursues
business based on management plans. Specifically, risks are
identified, evaluated, monitored, and controlled in each risk
category and in comprehensive risk areas, and are managed
within the scope of our management capabilities from a comprehensive understanding of each risk.
The Board of Directors sets out basic policies for comprehensive risk management, receives reports about risk management conditions, and ensures the effectiveness of risk
management functions. The Executive Committee creates
related rules based on these basic policies and deliberates onmatters of importance that directly relate to management policies. In line with these basic policies and rules, the ALM & Risk
Management Committee discusses and makes decisions on
matters essential to the risk management system for financial
risk, such as credit risk, while the General Risk Management
Committee deliberates on non-financial risk, such as administrative risk. Both committees meet regularly, and whenevernecessary, conduct risk monitoring.

Risk Management

Asset Self-Assessment System

Risk Management System

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Integrated Report 2021

Risk Management

Portfolio Management

Market Risk

Interest Rate Risk

Foreign Exchange Risk

Market Credit Risk
DBJ aims to reduce counterparty risk in derivatives transactions through margin transfers by means of a centralizedexchange and mutual credit support annex. Financial institution
transactions are managed within the limits of the creditworthiness of the counterparty. Transactions with operating companies and other customers are managed within the frameworkof comprehensive risk management for fluctuation risks, andmeasurements of credit valuation adjustment (CVA) are basedon accounting standards.

DBJ defines operational risk as the risk of loss arising frominternal processes, people or systems that are inappropriate or
nonfunctioning, or from external events. DBJ works to establish
a risk management system to minimize risk and prevent potential risk from materializing. The General Risk Management
Committee has been established to deliberate topics concerning operational risk management.
Within operational risk management, DBJ conducts administrative risk management and system risk management as
described below.
Administrative Risk Management
Administrative risk refers to the risk of sustaining losses resulting from employees neglecting to perform their duties correctlyor from accidents, fraud, and so on. To reduce or prevent
administrative risk, DBJ prepares manuals, performs checks on
administrative procedures, provides education and training,
and uses systems to reduce the burden of administrative duties.

system risk centrally, based on its system risk management
regulations. By determining security standards from a variety ofviewpoints—from information system planning and development to operation and use—the department extends the risk
management system Bank-wide and addresses appropriate
system risk management operations.

Stress Tests
In addition to managing comprehensive risks based on risk
exposure, DBJ performs stress tests on its own capital adequacy in order to ensure uninterrupted financial functions,
including Crisis Response Operations, while maintaining thesoundness of management under stressful conditions. These
stress tests are also used in evaluating the degree of impact on
our own capital from the creation of and changes to mediumterm management plans and business plans, as well as in
examining of possible responses to various management
issues.

Based on the latest forecasts for economic conditions,these stress tests take into account DBJ’s financial position invarious scenarios for challenging conditions, such as a major
economic recession or strong market stressors. We evaluate
whether financial functions can be smoothly executed andadequate financial health maintained under stressful conditions,by factoring in various scenarios for how risk exposure andrisk-weighted assets increase as a result of erosion of our own
capital, and of changes in our portfolio of loans and investments.
Also, we verify the adequacy of our cash liquidity.

Business Continuity Initiatives
DBJ has prepared a business continuity plan (BCP) to protect
the interests of its stakeholders, including its clients, its shareholders, and its executives and employees, as well as to fulfill
its social mission. The BCP aims to ensure the continuity andrapid recovery of core operations in the event of emergencies,
such as natural disasters (in particular, large-scale earthquakes), influenza and other pandemics, system failures, andpower outages.

Measures to Ensure Business Continuity
We have prepared a variety of measures to ensure business
continuity.
Enhanced System Robustness

We have ensured advanced security levels at the main centerand created a backup center to operate in the event that themain center ceases to operate.
Multilayered Communication Procedures

We have introduced a safety confirmation system to quickly
determine the whereabouts and status of executives andemployees even at night and on holidays. In addition, we have
distributed satellite telephones to key locations and personnel
to ensure multilayered communication procedures.

The BCP describes in an easy-to-understand format the roleof the Disaster Response Committee, work priorities, and specific actions and procedures to be taken in the event of adisaster. When drawing up policies for business continuity andrestoration, the Company envisions specific incidents, such as
an earthquake underneath the Tokyo metropolis or a novel
virus outbreak, and methodically decides how to respond to
anticipated damage in each disaster scenario.

Chain of Command and Delegation of Authority

To assure that decision-making concerning the continuity ofcore operations is prompt and certain in the event it becomes
necessary to execute the plans of the Disaster Response
Committee, we have put in place a chain of command and analternative hierarchy by which authority can be delegated.
Clarification of Initial Response and Procedures for Continuing or
Recovering Core Operations

For individual business units, we have established in advancethe procedures for the initial response and the continuation or
recovery of core operations so that relevant divisions can
respond quickly and with certainty on core operations evenwhen in a state of confusion.

Initiatives to Maintain or Improve BCP Viability
DBJ conducts various types of instruction and training of executives and regular employees to maintain or improve the viability of its BCP. Furthermore, employing a plan–do–check–act
cycle, we revise the BCP to reflect training results and recent
information, and the Executive Committee reviews it regularly
and amends it as necessary.

Corporate Data

Foreign Exchange risk is the risk of loss due to volatility inexchange rates, and this risk affects entities holding a net
excess of assets or liabilities denominated in foreign currencies.
Foreign Exchange risk derives from financing in foreign currencies and issuing foreign currency bonds. However, DBJ uses
Foreign exchange swaps and other instruments to limit this risk.

Operational Risk

System risk refers to the risk of loss due to a computer system
breakdown or malfunction, system defects, or improper computer use. DBJ has implemented the following internal processes to optimize system risk management and properly
manage risk with regard to system risk. The System Risk
Management Division is responsible for managing DBJ’s

Corporate GovernanceInterest rate fluctuations can create mismatches on rates ofinterest on assets and liabilities or on interest periods, creating
the risk of reduced profits or the risk of losses. Interest rate risk
can reduce the economic value of DBJ’s assets or interest
income.
Based on monitoring through multifaceted indices, such as
value at risk (VaR) and interest rate sensitivity analyses (duration
and basis point value), as well as ALM policies established by
the ALM & Risk Management Committee, DBJ conducts comprehensive management of current assets and liabilities to optimize net interest expenses and economic value by adequately
controlling interest rate risk.

Liquidity risk is the risk of a mismatch occurring in the periods
when funds are used and raised or of an unexpected outflow
of funds, causing differences in the flow of funds (cash liquidityrisk). Such situations make securing funds difficult and create
situations in which interest rates on borrowed funds are substantially higher than usual rates. At other times, because of
market complexities, entities in these circumstances may
become unable to participate in market transactions, compelling them to conduct transactions under substantially lessfavorable terms than otherwise would be the case. The risk oflosses for these reasons is known as market liquidity risk.
As its main methods of acquiring funds, rather than carryingout short-term funding by issuing commercial paper, DBJ relieson the stable procurement of long-term funds from theJapanese government’s Fiscal Investment and Loan Programand government-guaranteed bonds while issuing bonds andtaking out long-term loans. To prepare for unforeseen cash flow
crunches caused by shocks to financial markets, DBJ manages funds to ensure sufficient cash on hand to cover planned
capital outflows under envisioned stress conditions. DBJ has
formulated countermeasures based on contingency plans in
the event they become necessary depending on the modeclassification, and it has created different categories for fund operation modes based on the degree of constriction in cash flows.

System Risk Management

Strategy

The primary focuses in terms of market risk are interest raterisk and Foreign exchange risk. DBJ classifies market risk asrisk pertaining to investment and loan activities. DBJ does nothave any trading-related risk (specified transactions).

Liquidity Risk

Risk Management

Value Creation Story

The main assets in DBJ’s investment portfolio are unlisted
stock and mezzanine financing, and risk exposure is calculated
focusing on risk characteristics in each category of investment
and on differences in recovery methods.
More specifically, assets we aim to earn returns on from primarily business cash flows are evaluated with a focus on credit
risk. On the other hand, assets on which we expect to see
returns by selling to a third party or the market are evaluated in
the context of market risk. In this way, risk exposure is calculated by applying evaluations of credit risk and market risk.

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Development Bank of Japan Inc.
Integrated Report 2021

Response to the TCFD Recommendations

Metrics and Targets

When crafting its long-term vision, Vision 2030 (see page 7), DBJ identified climate change and natural resources andenergy as externalities that could have a major impact on stakeholders of the DBJ Group. DBJ has realized that
responding to the various climate-related risks and growth opportunities is a key aspect of its business strategies.
In fiscal 2019, with assistance from the support programs of the Ministry of the Environment, DBJ began a scenario
analysis to evaluate new business opportunities and business resilience to uncertainties related to climate change.
A particular focus was placed on evaluating transitional opportunities (please refer to the following page for details).
In fiscal 2021, DBJ is focusing on risk analysis, and working to identify and assess physical and transitional risks in its
portfolio. DBJ will also continue to increase information disclosure while refining and advancing its analysis with reference to global discussions about climate-related risks.
DBJ identifies, evaluates, monitors, and controls a variety of risks related to climate change. In August 2021, DBJ created its Investment Policy with Environmental and Social Considerations for financial transactions with specific sectors(coal-fired power generation, palm oil, weapons, and forestry) and businesses likely to pose major risks to, or have negative influences on, the environment and society. DBJ will carefully screen investments and loans in accordance with thispolicy and further enhance its investments and loans in ways that take greater account of the environment and society.
DBJ identifies, evaluates, and manages environmental and social risks associated with large-scale projects in accordance with the Equator Principles, which it adopted in 2020, based on guidance from the Environmental & Social
Assessment Office.
DBJ gauges the progress of its environmental initiatives in terms of the Greenhouse Gas Protocol’s Scope 1 (direct) and
Scope 2 (indirect) categories, which are concerned with the amount of greenhouse gas (GHG) emissions associatedwith corporate activities. Specific targets are set for DBJ and for each department in regard to the environmental
aspects of investment and loan operations and environmental protection initiatives such as educational programs thatencourage dialogue on relevant issues. In these ways, DBJ works systematically and consistently to help preserve theenvironment.
DBJ has set a target of ¥5.5 trillion in investments and loans related to its GRIT Strategy (see page 17) over the fiveyear period of its Fifth Medium-Term Management Plan. In line with this target, we will proactively support efforts totackle climate change at companies receiving investments and loans from us.

Financial institutions must draw up various socioeconomic
forecasts while taking into account future uncertainties associated with climate change, and then consider changes to theirportfolios and other actions accordingly. As an initial approachto scenario analysis, DBJ analyzed and evaluated the possible
impact on its operations through 2050 with a focus on transitional opportunities brought about by government policies andregulations, as well as technological innovations toward a lowcarbon or decarbonized society. More specifically, DBJ isemphasizing five types of technologies (carbon capture andstorage, electric vehicles, biomass, hydrogen, and renewableenergy) on an experimental basis from among the technologies
strongly related to climate change. For each scenario, DBJ
analyzes and evaluates growth opportunities and businessresilience in sectors covered by the analysis, with due consideration paid to technological development and proliferation.
Use of Shared Socioeconomic Pathways in
Scenarios
Even assuming a uniform rise in temperatures occurs as aresult of global warming, we believe there will be varied
degrees of expectations for technological progress and social
acceptance of solutions for the issue of climate change,depending on population and economic growth forecasts ineach country, among other factors. In light of these

uncertainties about socioeconomic trends around the world,
DBJ has adopted the Shared Socioeconomic Pathway (SSP)
approach to devise its scenarios to use as future assumptions
and conduct an analysis based on projected socioeconomic
trends in scenarios where global temperatures rise 1.5 ºC, 2.0 ºC,
and 4.0 ºC.
Analysis and Evaluation of Growth Opportunities by
Scenario in Each Sector
For each envisioned scenario, DBJ analyzes the degree of
impact from the five aforementioned types of technologies inboth qualitative and quantitative terms, and it conducts a comprehensive evaluation of growth opportunities and businessresilience in each analyzed sector, with consideration madefor Japan’s strengths.
DBJ will continue to expand the scope of its analysis andupdate the results, while monitoring the latest trends related
to climate scenarios. Using forecasting and scenario analysis
to generate a vision of the world in 2050, DBJ is engaging ininternal and external dialogue and discussion about topics
including how best to transition to a carbon-free society. DBJ
will further refine and advance its analysis in an attempt tobetter its understanding of related risks in the external environment, including climate change. While engaging in deeper conversations with customers and other stakeholders, DBJ will
provide financial assistance with the aim of moving closer toa low-carbon or decarbonized society, in addition to taking
appropriate actions to address climate change in terms of theopportunities that may arise.

Summary of Scenario Analysis
TCFD examples of climate-related risks and opportunities
Transitional risks• Technology• Market• Reputation
Physical risks• Acute• Chronic

Climate-related opportunities

Climate-related risks• Policy and Legal

Reflection in strategic planning and risk management
Financial impact
Disclosure in financial reports, etc.

Opportunities• Resource efficiency•E nergy resources•P roducts and services• Markets• Resilience

With a focus on transitional opportunities, analyze and evaluate growth opportunities in each scenario for covered sectors
Covered Sectors

SSP Scenarios

Relevant Technologies

Identify factors related toclimate change in covered
sectors and evaluate theirlevel of importance

Deploy SSPs in the scenarios with consideration paid
to recent government policy and the socioeconomic
environment

Based on an evaluation of relevant technologies,
qualitatively and quantitatively analyze growth opportunities in each sector

Selection of Four Scenarios

Five experimental types of technologies in focus

Global decarbonized society (1.5 °C increase)• SSP1• SSP3	Regionally segmented society with economic
disparities (4.0 °C increase)• SSP5-1	Low-carbon society with fossil fuels (2.0 °C increase)• SSP5-2	Traditional, developed society based on fossil
fuels (4.0 °C increase)

Carbon capture and storage
Electric vehicles

Renewable energy

Biomass

Hydrogen

Corporate Data

Risk Management

The DBJ Group engages in business activities while considering its impact on the environment and society. In this light,
DBJ created its Policy on Sustainability in May 2017 with the objective of contributing to the realization of a sustainable
society while balancing economic value and social value. On the Sustainability Committee (see page 54), directors andexecutives discuss and monitor the risks, opportunities, and actions related to climate change. The findings of the
Sustainability Committee are reflected in the Group’s business strategies, risk management, and decision-making process for investments and loans.

Analysis Conducted with Focus on Transitional
Opportunities from Development and Proliferation of
Climate Change– Mitigation Technologies

Corporate Governance

Strategy* Published at the TCFD Summit (October 8, 2019) to guide investors and other people
on how to read and understand information disclosures based on TCFD
recommendations

Scenario Analysis of Transitional Opportunities

Strategy

Governancein line with the TCFD recommendations. Recognizing the risks andopportunities presented by climatechange, DBJ is advancing andexamining the expansion of information disclosures based on the
TCFD framework.
As a Supporter of the Green
Investment Guidance in the TCFD Consortium, DBJ evaluatesand engages in dialogue with companies receiving investments
and loans with reference to said guidance, ascertaining their
responses to climate change and their disclosures of information based on TCFD recommendations. In this way, we support
their efforts to increase corporate value over the medium andlong term.

Response to the TCFD Recommendations

Value Creation Story

Climate change is a major global problem that could destabilizefinancial markets. One of our important roles as a financial institution is to provide products and services that support thetransition toward a more sustainable society that aligns with theobjectives of the Paris Agreement. Stakeholder engagement is
crucial to this role.
Aware of the importance of disclosing climate-related financial information, DBJ declared its approval of the concepts
behind the Task Force on Climate-related Financial Disclosures(TCFD), which was established by the Financial Stability Board
in June 2018. In addition, DBJ took part in the TCFD
Consortium, which was created in May 2019 for companies
and other financial institutions to come together to discuss the
TCFD recommendations.
We played a leading role in the formulation of the Guidancefor Utilizing Climate-related Information to Promote Green
Investment (Green Investment Guidance)* and analyzed scenarios with assistance from the Ministry of the Environment’s
support program for analyzing climate risks and opportunities



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Financial and Non-Financial Highlights

Financial Highlights

69

Financial and Non-Financial Highlights

Non-Financial Highlights
Capital Adequacy Ratio* (Consolidated)

Balance of Investments and Loans in Renewable Energy(¥ billion)(%)(¥ billion)

Increase in Dialogues with Customers via the Sustainability
Certification Program(No. of engagements)

18,00020

1,686.7

300

17.22
854.6

952.1

1,129.3

13,772.3

13,467.7

13,584.6

12,0001,454.4

15,284.1

16.81

16.65

17.26

100

16.65

276.8
241.9

15

12,981.6

75

74

72

200

Target of Fourth Medium-Term Management Plan: about 14%

82

79

186.9
10

100

110.2

124.2

5

2016

2017

Loan balance

2018

2019

2020 (Fiscal year)

0

25

2016

2017

2018

2019

2020 (Fiscal year)

0

2016

2017

2018

2019

2020 (Fiscal year)

0

2016

2017

2018

2019

2020 (Fiscal year)* Common equity Tier 1 risk-weighted capital ratio

Investment balance

The balance of investments and loans (non-consolidated) stood at¥16.9 trillion as of the end of fiscal 2020. The loan balance increasedto ¥15.2 trillion as of the end of the fiscal year under review owing to¥2.2 trillion in crisis countermeasure loans being extended in responseto the COVID-19 pandemic. The investment balance expanded to¥1.6 trillion as of the end of fiscal 2020, reflecting DBJ’s focus on
investment operations.

The capital adequacy ratio (consolidated) was 16.65% as of the end of
fiscal 2020. This ratio may decrease as we supply risk capital for purposes including strengthening our investment operations, but we will
nonetheless strive to maintain a sound capital adequacy ratio.

(¥ billion)

Under the DBJ Sustainability Evaluation Certification Program (see page30), at the request of customers, we provide feedback from a third-party
perspective on the results of customers’ evaluations and help themunderstand the issues they should address and enhance their management capabilities. In addition to the above, the number of in-person
award ceremonies for executives and employees, which is usually at least
40 in a normal year, declined to 10 due to the pandemic. Through theuse of online tools, we provided advanced assistance for feedback initiatives, as in a typical year. Through dialogue, we will continue to support
our customers’ efforts regarding sustainability management.

Human Resource Development(No. of In-House Training Sessions)

Collaboration and Cooperation with Regional Financial
Institutions (No. of Collaborative Funds with Regional
Financial Institutions)(No. of sessions)(No. of funds)

250

50

60
200

54

57.3

23.6
65.8

25.2
81.5

53

48
19.3
68.2

25.3

44

36

43

40

39

47.0

42

40

Corporate Data

28.3

150

30

100

30
25

85.4

84.8

80.9

20

91.7
76.6

20

50
10
0

Loans

Corporate Governance

Gross Ordinary Income (Consolidated)

The balance of investments and loans in renewable energy stood at¥276.8 billion as of the end of fiscal 2020. With renewable energy
drawing more attention as the world moves away from carbon-basedenergy sources, the DBJ Group will provide financial support to ventures in solar power, onshore and offshore wind power, biomass, andhydropower based on the advantages of each type of energy source,with a view toward achieving the Japanese government’s goal ofachieving carbon neutrality by 2050.

Strategy

0

59

50

6,000

Value Creation Story

Balance of Investments and Loans (Non-consolidated)

2011
Investment

2012

2013

2014

2015

2016

2017

2018

2019

2020

(Fiscal year)

Fee and commission income

In fiscal 2020, in loan operations, loan profits increased alongside growth in the average loan balance. In investment operations, profits declined due tosuch factors as investees deciding to postpone preferred dividend payments in order to secure cash on hand. Fee and commission income rose on an
increase in fee income. Accordingly, gross ordinary income amounted to ¥164.1 billion, roughly on a par with that of the previous fiscal year.

0

2016

2017

2018

2019

2020 (Fiscal year)

The DBJ Group provides abundant opportunities for training throughcombinations of rank-based and business-related training programs. In
fiscal 2020, in-person training was hampered by the COVID-19 pandemic, but we were able to move online almost all of our training programs. Doing so ensured employees had opportunities to develop theirskills and participate in sessions about women empowerment and leadership training. DBJ will continue to train personnel by proactively encouraging employees to enhance their skills through training seminars and byimproving the content of training based on DBJ’s management strategy.

0

2016

2017

2018

2019

2020 (Fiscal year)

As of the end of fiscal 2020, the DBJ Group had created 44 collaborative funds with regional financial institutions. The DBJ Group andregional financial institutions, each with its local customer base, supply
risk capital to local companies. We draw on the respective strengths ofeach financial institution with the aim of spurring initiatives to address
regional issues.

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Development Bank of Japan Inc.
Integrated Report 2021

Consolidated Financial SummaryConsolidated Financial Summary

Reference (Long-Term Profits / Losses, Financial Condition)(¥ billion)

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

(April 1, 2013 toMarch 31, 2014)(April 1, 2014 toMarch 31, 2015)(April 1, 2015 toMarch 31, 2016)(April 1, 2016 to
March 31, 2017)(April 1, 2017 toMarch 31, 2018)(April 1, 2018 toMarch 31, 2019)(April 1, 2019 toMarch 31, 2020)(April 1, 2020 toMarch 31, 2021)

Total income

347.9

345.1

318.7

340.0

361.6

339.0

358.6

285.4

291.7

301.2

289.1

269.4

Income before income taxes

51.9

95.0

99.2

115.6

165.7

153.0

185.1

122.5

127.1

128.1

78.9

73.0

(26.7)

(2.9)

(1.3)

30.0

30.3

32.1

70.8

41.1

39.7

40.5

7.2

24.1

Extraordinary profit / loss

(0.8)

9.3

10.9

0.6

0.2

0.6

1.5

(0.0)

2.2

(1.3)

4.0

0.7

Income before income taxes and minority interests

51.1

104.3

110.2

116.2

166.0

153.6

186.7

122.4

129.4

126.7

83.0

73.8

Total income taxes(10.8)(1.3)(31.9)(44.5)(40.8)(58.9)(57.6)(34.6)(35.0)(33.5)(31.5)(26.9)Net income attributable to owners of the parent

39.8

101.5

77.3

71.3

124.3

92.7

128.9

87.6

91.9

91.9

50.4

45.2

Total dividend amount

10.0

50.0

37.3

35.2

30.8

22.5

29.2

19.7

22.1

21.0

9.9

8.1

Total assets

15,595.7

14,845.2

15,579.8

16,248.7

16,310.7

16,360.6

15,907.1

16,570.4

16,952.2

17,079.5

17,693.6

21,221.8

Loans

13,514.6

13,031.4

13,645.4

13,918.2

13,838.4

13,261.3

12,952.5

13,039.5

12,725.2

12,923.9

12,415.9

14,757.1

Securities

1,289.4

1,165.5

1,176.6

1,357.0

1,637.5

1,887.9

1,803.0

1,750.3

1,866.4

1,961.0

2,374.2

2,535.8

Total liabilities

13,268.2

12,435.2

13,118.8

13,710.1

13,682.9

13,613.3

13,022.9

13,584.2

13,842.1

13,783.2

14,259.6

17,518.4

Borrowed money

9,082.4

8,576.4

9,170.5

9,448.3

9,182.6

8,598.2

7,892.1

8,472.3

8,574.1

7,987.8

8,070.9

10,664.5

Debentures and corporate bonds

3,746.3

3,629.3

3,671.8

3,924.5

4,237.4

4,569.3

4,727.9

4,711.8

4,932.9

5,296.9

5,696.8

6,223.4

Total equity

2,327.5

2,409.9

2,461.0

2,538.5

2,627.7

2,747.2

2,884.2

2,986.2

3,110.1

3,296.3

3,434.0

3,703.4

Common stock

1,181.1

1,181.1

1,187.7

1,206.9

1,206.9

1,206.9

1,000.4

1,000.4

1,000.4

1,000.4

1,000.4

1,000.4

Total capital ratio (Basel II, BIS standard)

19.13%

20.50%

18.56%

—

—

—

—

—

—

—

—

—

Total capital ratio (Basel III, BIS standard)

—

—

—

15.52%

15.83%

16.80%

17.87%

17.47%

16.94%

16.74%

17.37%

16.79%

Ratio of risk–monitored loans (Banking Act basis)

5.07%

1.28%

1.47%

1.23%

0.99%

0.77%

0.64%

0.54%

0.47%

0.40%

0.46%

0.76%

Return on assets (ROA)

0.27%

0.67%

0.51%

0.45%

0.76%

0.57%

0.80%

0.54%

0.55%

0.54%

0.29%

0.23%

Return on equity (ROE)

1.82%

4.31%

3.18%

2.86%

4.83%

3.47%

4.60%

2.99%

3.03%

2.88%

1.51%

1.27%

Number of employees

1,181

1,203

1,270

1,315

1,391

1,407

1,435

1,546

1,631

1,650

1,703

1,781

3,793.1

2,116.6

2,927.0

2,652.4

2,943.3

2,544.2

3,027.7

4,012.6

3,153.4

3,790.8

3,951.8

5,786.7

3,682.0

2,034.4

2,849.0

2,524.5

2,805.1

2,262.7

2,861.3

3,805.8

2,973.6

3,490.4

3,401.5

5,484.2

Investments

111.1

82.2

78.0

127.8

138.2

281.4

166.3

206.7

179.7

300.4

550.3

302.5

Funds raised (flow)

3,793.1

2,116.6

2,927.0

2,652.4

2,943.3

2,544.2

3,027.7

4,012.6

3,153.4

3,790.8

3,951.8

5,786.7840.9

1,212.8

691.7

502.2

1,307.5

1,129.9

1,639.7

1,526.1

1,005.0

2,051.4

1,546.1

1,191.4

Consolidated

Of which, equity and fund–related gains / losses

Investment and fund–raising flow (non–consolidated)
Loans and investments (flow)
Loans

Of which, recovered, etc.

2008–20102011–20132014–20162017–2019

First Medium-Term
Management Plan:
CHALLENGE 2010

Second Medium-Term Management Plan:
Endeavor 2013

Third Medium-Term Management Plan:
Supporting Japan’s Sustained Growth asa Global Innovator

Fourth Medium-Term Management Plan:
Initiate Change, Create the Future

Corporate Data

Fiscal 2012
(April 1, 2012 toMarch 31, 2013)

Corporate GovernanceFiscal 2011
(April 1, 2011 toMarch 31, 2012)

Strategy

Fiscal 2010
(April 1, 2010 toMarch 31, 2011)

Value Creation Story

Fiscal 2009
(April 1, 2009 to
March 31, 2010)

72

Development Bank of Japan Inc.
Integrated Report 2021

Development Bank of Japan Inc.
Integrated Report 2021

Timeline

Shareholder Information

Japan Development Bank, the Hokkaido-Tohoku Development Finance Public Corporation,and the Development Bank of JapanName

As of March 31, 2021
Address

Number of shares held (thousands of shares)

Percentage of total equity (%)

Month

Event

Finance Minister

1-1, Kasumigaseki 3-chome, Chiyoda-ku, Tokyo

43,632

100.0

April

Japan Development Bank (JDB) established

Total

—

43,632100.0

JDB branches opened in Osaka (now the Kansai Branch), Sapporo (now the Hokkaido Branch),
Nagoya (now the Tokai Branch), and Fukuoka (now the Kyushu Branch)

1952
1956

June

Hokkaido Development Finance Public Corporation established

1957

April

Hokkaido Development Finance Public Corporation, reorganized as the Hokkaido-Tohoku Development
Finance Public Corporation (HTDFP) branches, opened in Sapporo (now the Hokkaido Branch) andSendai (now the Tohoku Branch)

1960

JDB branch opened in Takamatsu (now the Shikoku Branch)

1961

JDB branches opened in Hiroshima (now the Chugoku Branch) and Kanazawa (now the Hokuriku Branch)April

JDB representative office opened in New YorkJDB representative offices opened in Kagoshima (renamed Minami-Kyushu Branch in October 1999) and Matsue

1963
July

1972

January

1985

June

1987

September

JDB representative office opened in London
HTDFP representative office opened in Niigata (renamed Niigata Branch in July 1989)
The Japan Development Bank Law revised1)	Investment function (pertaining to business in such areas as research and development,
urban development, and energy use stipulated by government ordinance) added
2) R&D fund investment function added
Low interest rate loan system funded partially by sale of NTT shares created by JDB and HTDFP
JDB representative offices opened in Oita, Matsuyama, Okayama, and Toyama
HTDFP representative offices opened in Hakodate and Aomori

1989

JDB loans to assist disaster recovery commenced

1995

February

1997

SeptemberBill entitled “Pertaining to Consolidation and Rationalization of Special-Purpose Companies, etc.,” approvedby the Cabinet (decision dissolving JDB and HTDFP and consolidating them as a new bank approved)

1998

December

JDB and HTDFP loans in response to changes in the financial environment commenced(March 31, 2001, sunset clause introduced)

1999

June

The Development Bank of Japan Law (Law No. 73 of 1999) approved
All rights and responsibilities of JDB and HTDFP and all financing operations of Japan Regional Development Corporation andJapan Environment Corporation transferred to the Development Bank of Japan
DBJ representative offices opened in Kushiro and Singapore
The Development Bank of Japan Law revised (additional spot inspections by the Financial Services Agency introduced)

2002

May

2005

December

2006

May

The Act on Promotion of Administrative Reform for Realization of Small and Efficient Government(Act No. 47 of 2006) approved

June

Policy-Based Financing Reform Plan decided upon by DBJ head office for the Implementation of Policy Finance Reform

2007

June

The Development Bank of Japan Inc. Act (Act No. 85 of 2007) approved

Important Policy of Administrative Reform approved by the Cabinet

government (industrial investment). This investment is to be used
for a new scheme, Special Investment Operations, to strengthen
and develop the Fund for Japanese Industrial Competitiveness. In
addition, with regard to the application of DBJ’s investment andloan functions toward crisis response and the provision of growth
capital, measures were introduced obliging the Japanese government to hold at least a certain percentage of DBJ’s shares.
As part of this structural revision, deliberations by the Japanese
government’s Study Panel Concerning the Promotion of Expanding
Growth Funding covered such topics as DBJ’s proper implementation of Crisis Response Operations, the importance of initiatives
for providing growth capital (equity and mezzanine financing) toaddress shortages in Japanese financial and capital markets, andan evaluation of DBJ’s initiatives following its conversion to a jointstock company.
In light of discussions in 2019 by the Japanese government’s
Study Panel Concerning the Future Vision of Special Investment
Operations at Development Bank of Japan Inc. under the Act for
Partial Amendment of the Development Bank of Japan Inc. Act(Act No. 29 of 2020), which was enacted on May 22, 2020, Special
Investment Operations shall take the following required measures:(1) extend the investment decision term and government financing
term from March 31, 2021, until March 31, 2026 and(2) extend the deadline for ending operations from March 31, 2026,
until March 31, 2031.

Corporate GovernanceOctober

On October 1, 2008, DBJ transitioned from a special public corporation to a joint-stock company. In preparation for full-scale privatization following the disposal of all Japanese government-owned
shares, DBJ has continued working to enhance its corporate value
through integrated investment and loan services. These activities
include providing long-term loans; equity, mezzanine financing, andother types of risk capital; and M&A advisory services.
On the other hand, shortly after DBJ’s conversion to a jointstockcompany, the global financial crisis and the Great East Japan
Earthquake occurred. The Japanese government called on DBJ tosteadily mount large-scale Crisis Response Operations. Due tothese crises, the Development Bank of Japan Inc. Act (Act No. 85
of 2007) was amended twice, with DBJ accepting an additional
increase in Japanese government capital. Also, by the end of fiscal
2014, the Japanese government was to review DBJ’s organization,
including its shareholdings, as stipulated by the revision.
Based on the deliberations by the Japanese government’s
Study Panel Concerning the Promotion of Expanding GrowthFunding, the Act for Partial Amendment of the Development Bankof Japan Inc. Act (Act No. 23 of 2015), which was enacted on May
20, 2015, maintains the direction toward full-scale privatization. At
the same time, in order to fully ensure the provision of funding in
response to large-scale disasters and economic crises, theamended act makes DBJ’s Crisis Response Operations obligatory
for an indefinite period. From the perspective of promoting theprovision of growth capital to revitalize regional economies andincrease the competitiveness of enterprises, the amended act calls
for DBJ to accept a certain amount of capital from the Japanese

Strategy

1964

Summary of Changes to the DBJ Act after Conversion toa Joint-Stock Company

Value Creation Story

Year

1951

1962

73

Note: For the full text of the DBJ Act, please refer to the Data section.

Development Bank of Japan Inc.
Year

Month

2008

October

Event

Development Bank of Japan Inc. (DBJ) established (Capital: ¥1 trillion)

December
2009

June

Act for Partial Amendment of the Development Bank of Japan Inc. Act (Act No. 67 of 2009) approved

September

Capital increased to ¥1,103,232 million

November

DBJ Europe Limited launched

2010

March

2011

May

2012

DBJ Singapore Limited launched

Capital increased to ¥1,181,194 million
The Development Bank of Japan Inc. Act partially amended based on establishment of the Act for Extraordinary Expenditure
and Assistance to Cope with the Great East Japan Earthquake (Act No. 40 of 2011)

December

Capital increased to ¥1,187,364 million

March

Capital increased to ¥1,187,788 million

June

Capital increased to ¥1,198,316 million

December

Capital increased to ¥1,206,953 million

2014

June

DBJ Investment Consulting (Beijing) Co., Ltd. (formerly Japan Asia Investment Consulting (Beijing) Co., Ltd.) converted to wholly
owned subsidiary

2015

May

Act for Partial Amendment of the Development Bank of Japan Inc. Act (Act No. 23 of 2015) approved
Special Investment Operations started
Advisory Board positioned as an advisory body to the Board of Directors
Special Investment Operations Monitoring Board established

AugustCapital reduced by ¥206,529 million, and crisis response reserve increased by the same amount2018

October

DBJ Americas Inc. launched

2020

May

Act for Partial Amendment of the Development Bank of Japan Inc. Act (Act No. 29 of 2020) approved

1

Measures maintaining direction toward full-scale privatization

Beforerevision2•	Conducting Crisis Response Operations as adesignated financial institution•	Enabling Japanese government recapitalization incrisis response by March 31, 2015

•	Assuming responsibility for Crisis Response Operations for an indefinite period(at the same time reflecting this obligation in the Articles of Incorporation)

After•	Extending for an indefinite period the scope of the Japanese government’s recapitalization
revisionsecuring DBJ’s financial structure, with the Japanese government having such obligations
as holding more than one-third of DBJ’s shares

Measures establishing new Special Investment Operations scheme to temporarily provide growth capital in a concentrated manner

Beforerevision

4•	No changes in the main provisions, including Article 1, which stipulates DBJ’s objectives

After•	Disposal of shares as soon as practicable (considering its effect on achieving DBJ’s
revision
objectives as well as on the market situation)

Measures ensuring appropriate implementation of Crisis Response Operations

Beforerevision3

Full-scale privatization and disposal of all Japanese
government-held shares, targeting around five toseven years from April 1, 2015

Provision of risk capital through the Fund for JapaneseIndustrial Competitiveness•	Reinforcement of the Fund for Japanese Industrial Competitiveness (a portion of the financial
resources for which are provided through measures for industrial investment); implementationof Special Investment Operations as a measure for a limited period of time, through fiscal
After2025 (at the same time reflecting this obligation in the Articles of Incorporation, complementrevision
ing and encouraging private-sector enterprises, etc.)•	Obligation that the Japanese government shall hold one-half or more of shares until theconclusion of Special Investment Operations

Provisions referencing consideration for private financial institutions through ongoing Japanese government involvement
As per the Third Medium-Term Management Plan,

Before sustainment of close communications, maintaining
revision a focus on operations in collaboration with other financial institutions•	The Corporation shall, for an indefinite period, pay special attention in conducting its business so that it will not affect its appropriate competitive relationships with other business

entities
Afterrevision •	The Japanese government shall hear the opinions of representatives of ordinary financial

institutions and other relevant persons concerning Japanese government revisions on an
as-needed basis regarding Crisis Response Operations and Special Investment Operations

Corporate Data

Crisis Response Operations begun by DBJ as a designated financial institution

Highlights of 2015 Revisions to the DBJ Act

74

Development Bank of Japan Inc.
Integrated Report 2021

Development Bank of Japan Inc.
Integrated Report 2021

Organizational Structure (as of August 1, 2021)

General Meeting of
Shareholders

Chief Industry
Strategy
OfficeAudit & Supervisory
Board Office

Corporate Information

Business Planning & Coordination Department

Innovation Promotion OfficeFinancial Institutions Department

Global Business Planning OfficeUrban Development Department

Regional Business Planning Office

Corporate Finance Department, Division 1

Crisis Response Operating Office

Corporate Finance Department, Division 2

Aerospace Office

Corporate Finance Department, Division 3

Global Logistics OfficeName

Development Bank of Japan Inc.

Established

October 1, 2008

Head office

Otemachi Financial City South Tower, 9-6, Otemachi 1-chome, Chiyoda-ku, Tokyo 100-8178, Japan
Tel: +81-3-3270-3211

Capital¥1,000,424 million (All capital is funded by the government of Japan.)Number of
employees

1,781 (non-consolidated 1,230)

Value Creation Story

Audit & Supervisory
Board Members /Audit & Supervisory
Board

75

Corporate Finance Department, Division 4
Corporate Finance Department, Division 5

Energy Strategy Office

Corporate Finance Department, Division 6

Healthcare Industry Office

Hokkaido Branch
Tohoku Branch
Board of Directors

Executive Committee(As of March 31, 2021)

Tohoku Recovery & Growth Support OfficeNiigata Branch

Tokai Branch
Advisory Board

The DBJ Group provides diverse services that satisfy the needs of its customers.

Kansai Branch
Chugoku Branch

StrategyGroup Companies

Hokuriku BranchOverseas locations

Shikoku BranchSpecial Investment
Operations
Monitoring Board

Kyushu Branch

Kumamoto Recovery Office

DBJ Singapore Limited

DBJ Singapore Limited is a Singapore-based subsidiary established in December 2008. It mainly provides support for investments and loans
as well as advisory services in the Asia-Pacific region, and also collects and disseminates information locally.

DBJ Europe Limited

DBJ Europe Limited is a London based subsidiary established in November 2009. It mainly provides support for investment and loan services
in Europe, and also collects and disseminates information locally.

DBJ Investment Consulting(Beijing) Co., Ltd.

DBJ Investment Consulting (Beijing) Co., Ltd. became a wholly owned subsidiary in June 2014 and is based in Beijing and Shanghai. It mainlyoffers support for investment and loan services in China, and also collects and disseminates information locally.

DBJ Americas Inc.

Launched in October 2018, DBJ Americas Inc. is a local subsidiary based in New York, U.S.A. It mainly provides support for investment andloan services in the Americas, and also collects and disseminates information locally.

Minami-Kyushu Branch
Real Estate Finance Department

Growth & Cross Border Investment Department
Regional Investment Department
Structured Finance Department

Environmental & Social Assessment OfficeSyndication & Credit Trading Department
Business Development Department
Chief
Research
OfficeOverseas Subsidiaries:
DBJ Singapore Limited
DBJ Europe Limited
DBJ Investment Consulting (Beijing)Co., Ltd.
DBJ Americas Inc.
The Chief Investment Management
Office consists of the Corporate
Planning & Coordination
Department, Business Planning &Coordination Department, Credit
Analysis Department, Risk
Management Department andAccounting Department.
Operations Audit
Committee

DBJ Capital Co., Ltd. is the venture capital arm of the DBJ Group. It mainly makes early-stage equity
investments in venture firms, and supports their growth through hands-on management.

Sustainable Solution Department
Economic Research Office
Economic & Industrial Research Department
Regional Research & Planning Department
Research Institute of Capital Formation

Chief
Investment
Management
OfficeDBJ Capital Co., Ltd.

Industrial Research &Customer Solution Planning Office
Corporate Management &Accounting Research OfficeSecretariat Office
Human Resources Management Department

Public Relations Office

Corporate Planning & Coordination Department

Sustainability Management Office

Risk Management Department

Digital Strategy Office

DBJ Investment
Advisory Co., Ltd.
DBJ Securities Co., Ltd.

DBJ Securities Co., Ltd. is a securities subsidiary that assists the DBJ Group with investment and loan
services. It supports optimal capital procurement, centered on alternative product fields, provides asset
management opportunities, and flexibly fulfills diverse needs.

DBJ Asset Management
Co., Ltd.

DBJ Asset Management Co., Ltd. Is an asset management company focused on real estate, private
equity, and infrastructure investments. It provides quality investment opportunities to investors with thecomprehensive financial backing of the DBJ Group.

Research / Consulting
Japan Economic ResearchInstitute Inc.

Japan Economic Research Institute Inc. is a comprehensive think tank that primarily conducts surveys
and consulting. It meets customer needs from a comprehensive viewpoint, leveraging synergies in its
three survey fields: public, solutions, and international.

Value Management Institute, Inc.

Value Management Institute, Inc. is a comprehensive think tank with strengths derived from its insight
into advanced technologies and analysis using proprietary economic models. It provides tailor-madesolutions to a broad range of government policy issues.

Information Resources Department
General Affairs Department
Accounting Department
Credit Analysis Department
Legal Affairs & Compliance Department

Settlement & Accounting Operation Office

DBJ Investment Advisory Co., Ltd. provides advice related to DBJ’s VG (Value for Growth) Investment Program.** Value-added equity investment that supports growth strategies

Real estate management / IT services / Shared Service
DBJ Real Estate Co., Ltd.

DBJ Real Estate Co., Ltd. Handles administrative functions for the DBJ Group for office building
leasing, rental conference rooms, and business libraries.

Treasury Department
Internal Audit Department

Consist, Inc.

DBJ Business Support Co.,Ltd.

Consist, Inc. provides one-stop consulting services for developing, maintaining, and operating IT, using
technology to help solve social issues.
DBJ Business Support Co., Ltd. is a shared services company of the DBJ Group. It supports DBJ Group companies business by consolidating
their administrative operations and also streamlining processes with its operational expertise.

Corporate Data

Representative Offices: Hakodate,
Kushiro, Aomori, Toyama, Matsue,
Okayama, Matsuyama, Oita

Investments / Securities / Asset Management

Corporate Governance

Strategic Finance Department
Chief
Investment
Office