FY2023 Financial Results
Staying ahead of the curve to always serve the region

May 28, 2024

Table of Contents
Section I: Financial Results for FY2023
Summary of Consolidated Results
Summary of Non-consolidated Results of Juroku Bank
Consolidated Core Net Operating Profit
Expenses and Adjusted OHR
Net Interest Income and Loans
Fees and Comｍissions
Securities Investment
Credit Costs and Outstanding Non-Performing Loans
Profit from Customer Services and Group Companies
Capital Adequacy Ratio and ROE
Cross-shareholdings
Shareholder Returns
Business Projection and Dividend Forecast

Section III: Initiatives for Sustainability
5
6
7
8
9
10
11
12
13
14
15
16
17

Section II: Initiatives for Enhancing Corporate Value
Juroku Financial Group History
Juroku Financial Group Growth Strategy
Actions to Implement Management Conscious of Cost of
Capital and Stock Prices

19
20
21-25

Value Creation Process
Initiatives for Key Challenges (Materiality)
Progress in Sustainability KPIs
～VISION～ and Key Challenges
Materiality: Revitalization of the Local Economy
Materiality: Sustainable Development of the Local Community
Materiality: Environmental Conservation and Climate Change Actions
Materiality: Empowerment of Diverse Human Resources
Materiality: Advancement of Governance

27
28
29
30
31-33
34-35
36-39
40-42
43

Section IV: Progress in the 2nd Medium-Term
Management Plan
Overview of the Long-Term Vision
Overview of the 2nd Medium-Term Management Plan
Transformation Strategy
Human Innovation Strategy
Customer-first Marketing Strategy
Region-Producing Strategy
Progress against Numerical Targets of the 2nd
Management Plan

Medium-Term

45
46
47
48
49
50
51

※

The Juroku Financial Group (”Juroku FG”) was established on October 1, 2021. Consolidated figures prior to the September 2021 term are associated with the Juroku Bank Group, the parent company of which is Juroku Bank.

※

Descriptions of business projections and other future developments provided in this document are based on information currently available to Juroku FG and some assumptions considered as rational. The actual business performance andother factors could differ significantly due to a variety of factors.

2

Summary
Section I: Financial Results for FY2023
 Juroku FG’s ordinary profit and net income attributable to owners of the parent company increased for the sixth consecutive fiscal year, and Juroku Bank’s non-consolidated
ordinary income and net income attributable to owners of the parent company increased for the seventh consecutive fiscal year.
 Since the year-end dividend was increased by 20 yen to 90 yen, the total annual dividend came to 160 yen, 30 yen higher than in the previous fiscal year, marking the fifth
consecutive fiscal year of dividend increase.

Section II: Initiatives for Enhancing Corporate Value Responded with a sense of urgency to the demands of local communities by leveraging our Group's management resources and creating synergies through cross-industry
collaborations and joint ventures.
 Focused on initiatives to improve PBR that lead to sustainable profit growth, higher ROE and reduction of cost of equity based on the logic tree.
 In recognition of our Group’s initiatives, the share price at the end of Mar. 2024 stood at 4,790 yen, 2.4 times higher than at the time of inception, and the market capitalization
increased to 181.6 billion yen.

Section III: Initiatives for Sustainability
 All Sustainability KPIs set in May 2022 made steady progress based on the coordinated efforts of Group companies.
 Formed an alliance with Resona Group in Feb. 2024 to strengthen the retail segment
 Received the “Fiscal 2023 Minister of the Environment Award for Best Practices (Regional Category)" under the Principles for Financial Action for the 21st Century” in recognition of
our efforts to contribute to our customers’ decarbonization management.
 To enable employees to take on career challenges in a wide range of business areas, an internal recruiting system is used to place personnel in Group companies and partnercompanies in different industries.

Section IV: Progress in the 2nd Medium-Term Management Plan In Mar. 2024, Google Workspace (GWS) was introduced across the Group, improving group productivity.
 Created an organizational environment in which each individual can fully play an active role independently by implementing a new HR system and personnel exchanges withvarious industries.
 Implemented New NISA campaign to promote expansion of NISA accounts
 Received the “Award from Secretary General of Secretariat for Promotion of Regional Revitalization, Cabinet Office” for "Initiatives for Restoration of Old Private Houses Using
Historical Resources," which were implemented in cooperation with Mino City, Gifu Prefecture.

3

Agenda01

Financial Results for FY2023

Initiatives for02
Enhancing Corporate Value

03 Initiatives for Sustainability
Progress in the 2nd
04
Medium-Term Management Plan
4

Juroku FG
consolidated
results

Summary of Consolidated Results

 Consolidated core gross operating profit decreased 1.2 billion yen YoY to 73.3 billion yen as an increase in net interest income was offset by a decrease in other operating
profit.
 Ordinary profit and net profit attributable to owners of the parent company exceeded initial forecasts and rose for the sixth consecutive fiscal year.
(0.1 billion yen)（億円）

Juroku十六ＦＧ連結
FG consolidated results

Consolidated core gross operating profit

2022/32023/3(A)

2024/3
(B)

YOY
前期比
(B－A)

連結コア業務粗利益

782

745

733 1

△ 12

Net
interest income
資金利益

543

511

528

17

Fees and commissions

役務取引等利益

171

187

185

△2

Other operating profit (excluding profit/loss
その他業務利益（除く国債等債券損益）
on
JBGs and other debt securities)

67

47

18

△ 29

460

439

441 2

うち人件費

Personnel expenses

247

235

234

△1

Non-personnel expenses
うち物件費

183

174

178

4

321

306

292 3

△ 108

△ 77

△ 142

△ 65

213

229

149

△ 80

Creditcosts
与信関係費用

28

16

9

△7

Profit/loss on equities

65

36

133

97

Ordinary
経常利益profit

267

272

279 4

7

Net income attributable to owners of the
親会社株主に帰属する当期純利益
parent company

171

186

193 5

7

Expenses

経費

Consolidated
core net operating profit
連結コア業務純益
Profit/loss
on JBGs and other debt securities
国債等債券損益
Consolidated
net business profit
連結実質業務純益

株式等関係損益

1

Consolidated core gross operating profit
Decreased 1.2 billion yen YoY to 73.3 billion yen as an increase in
net interest income was offset by a decline in other operating profit(excluding profit/loss on JBGs and other debt securities)

2

Expenses
Increased 0.2 billion yen YoY to 44.1 billion yen due to an increasein non-personnel expenses resulting from strategic DX (digitaltransformation) investment and other factors.

2

3

Consolidated core net operating profit
Decreased 1.4 billion yen YoY to 29.2 billion yen due to a decline inconsolidated core gross operating profit△ 14
4

Ordinary profit

5

Net income attributable to owners of the parent
company
Consolidated ordinary profit increased 0.7 billion yen YoY to 27.9
billion yen and net income attributable to owners of the parent
company rose 0.7 billion yen YoY to 19.3 billion yen, bothincreasing for the sixth consecutive fiscal year mainly due to higher
profit on equities.

5

Juroku Bank nonconsolidated
results

Summary of Non-consolidated Results of Juroku BankCore net operating profit decreased 1.7 billion yen YoY to 26.8 billion yen.
Ordinary profit increased 0.5 billion yen YoY to 26.0 billion yen and net income rose 0.8 billion yen YoY to 18.7 billion yen, both increasing for the seventh consecutive fiscal year.
(0.1 billion yen)（億円）
Juroku Bank
non-consolidated results
十六銀行単体2022/32023/3(A)

2024/3
(B)

YOY
前期比
(B－A)

1

Core gross operating profit

684

657

642

Net
interest income
資金利益

545

518

540

22

Fees and commissions

役務取引等利益

111

126

125

△1

Other operating profit (excluding profit/loss
その他業務利益（除く国債等債券損益）
on
JBGs and other debt securities)

26

11

△ 23

△ 34

コア業務粗利益

Expenses

経費

1

394

371

373

うち人件費

195

181

178

△3

Non-personnel expenses
うち物件費

171

163

169

6

289

285

268

△ 108

△ 77

△ 142

△ 65

180

208

125

△ 83

Creditcosts
与信関係費用

25

14

5

△9

Profit/loss
on equities
株式等関係損益

67

36

133

97

Ordinary
経常利益profit

245

255

260

4

5

Net
income
当期純利益

173

179

187

5

8

Core net operating profit

コア業務純益Profit/loss
on JBGs and other debt securities
国債等債券損益Net
business profit
実質業務純益Decreased 1.5 billion yen YoY to 64.2 billion yen, mainly due to a decrease inother operating profit (excluding profit/loss on JBGs and other debt securities)
resulting from higher foreign currency funding costs, which offset an increasein net interest income resulting from higher loan interest income.

△ 15

Personnel expenses

22

Expenses
Increased 0.2 billion yen YoY to 37.3 billion yen due to higher non-personnel
expenses resulting from strategic DX (digital transformation) investment andother factors.

2
3

3Core gross operating profit

Core net operating profit
Decreased 1.7 billion yen YoY to 26.8 billion yen due to a decline in core grossoperating profit△ 17
4

Ordinary profit

5

Net income
Ordinary profit increased 0.5 billion yen YoY to 26.0 billion yen and net income
rose 0.8 billion yen YoY to 18.7 billion yen, both increasing for the seventh
consecutive fiscal year mainly due to higher profit on equities.

6

Juroku FG
consolidated
results

Consolidated Core Net Operating Profit

 Core net operating profit declined 1.4 billion yen YoY to 29.2 billion yen, mainly due to a decrease in other operating profit (excluding profit/loss on
JBGs and other debt securities).

■ Consolidated core net operating profit

Net interest income items(0.1 billion yen)

Consolidated core net operating profit

306
306

321

Loan
interest+3

Depositinterest+0

Securities
investment
interest+49

V: +12
R: -8

V: +0
R: +0

V: +5
R: +44

V: Balance factor

Other
Net interest
income-35

Fees andcommissions-1

Personnel
Other
operating profit expenses+1-28

Nonpersonnel
expenses
-3

Taxes
-0

292
292

R: Yield factor

238

220

20/3

21/3

22/3

23/3

24/3

[Ref.] Core gross operating profit and expenses(0.1 billion yen)
20/3

21/3

22/3

23/3
(A)

24/3
(B)

Difference(B-A)

Consolidated core grossoperating profit

705

712

782

745

733

-12

Net interest income

518

505

543

511

528

17

Fees and commissions

158

155

171

187

185

-2

Other operating profit*

29

51

67

47

18

-29

Expenses

484

474

460

439

441

2

Consolidated Core Net
Operating Profit

220

238

321

306

292

-14

*Excluding profit/loss on JBGs and other debt securities

Consolidated core net operating profit

782

712

705
484

20/3

321

238

220

474

21/3

Expenses

22/3

ConsolidatedCore Net

292 Operating Profit

306

745
460

(0.1 billion yen)

733
439

23/3

441

24/3

7

Juroku FG
consolidated
results

Expenses and Adjusted OHR

Juroku Bank nonconsolidated results

 Personnel expenses decreased due to the natural attrition of personnel, which offset additional expenses caused by a pay-scale raise, while non-personnel expenses
increased mainly due to strategic DX investment.
 Adjusted OHR was maintained at a low level of 60.20% in Juroku FG consolidated results and 58.21% in the Juroku Bank non-consolidated results.

■ Expenses
Juroku FG consolidated results
Personnel expenses

484

474

28
187

(0.1 billion yen)

Non-personnel expenses

460

30

29

188

183

Personnel expenses

Tax

439

441

28

28

174

Juroku Bank non-consolidated results

178(0.1 billion yen)

Non-personnel expenses

421

407

26

394

27

27

170

170

171

Tax

371

373

26

26

163

169

Personnel expenses

Overall, personnel expenses fell slightly as
additional expenses caused by a pay-scale raise
was more than offset by expense savings stemmingfrom the natural attrition of personnel.
Non-personnel expenses

267

20/3

255

247

235

234

223

209

195

181

178

21/3

22/3

23/3

24/3

20/3

21/3

22/3

23/3

24/3

Non-personnel expenses increased due to DX
investments, including the introduction of over-thecounter tablets and groupware, and the replacementof signs following the change of the bank logo to the
FG logo for unification.

■ Adjusted OHR
66.51
67.18

65.38

58.87
57.70

20/3

21/3

(%)

Juroku FG consolidated results
Juroku Bank non-consolidated results

68.69

22/3

58.90

56.52

23/3

60.20

58.21

24/3

(50% range)

2nd Medium-Term
Management Plan target
50% levels

28/3

8

Net Interest Income and Loans

Juroku Bank nonconsolidated results

Net interest income increased 2.2 billion yen YoY to 54.0 billion yen due to higher interest and dividends from JPY securities, which offset lower interest income on deposits with the Bank of Japan.
Average balance of JPY loans remained solid at 4,745.2 billion yen, up 158.2 billion YoY, and average rate on outstanding business loans on deeds rose by 0.008 points YoY to 0.836%.

■ Net interest income(0.1 billion yen)

20/3

Net interest income

21/3

519

Interest income in JPY

23/3
(A)

22/3

508

545

Differe
nce
(B-A)

24/3
(B)

518

540

22

475

465

494

490

502

12

Interest income/expenses
on JPY loans anddeposits

376

379

378

375

380

5

Interest and dividends
from JPY securities

96

82

95

98

113

15

JPY deposit interest

2

3

20

15

7

-8

Interest income in foreign
currencies

43

42

50

28

37

9

■ Average balance and yield of JPY loans

Interest and dividends from JPY securities

JPY deposit interest(0.1 billion yen)Interest income in foreign currencies

540

545

518

50
20
95

28
15
98

113

379

378

375

380

21/3

22/3

23/3

24/3

519

508

43
2
96

42
3
82

376

20/3

37
7

(0.1 billion yen, %)

20/3

21/3

22/3

23/3
(A)

24/3
(B)

Average balance of
JPY loans

42,923

44,11144,89645,87047,452Average yield of JPY
loans

0.889

Difference
52,000(B-A)

50,000

Average balance of JPY loans

0.889

0.867

0.846

1,582

Average yield of JPY loans

0.822(0.1 billion yen, %)0.805

48,000
0.867

0.846

0.822

0.805

[Ref.] Average rate of loans on deeds (during the last month of the fiscal year)
OverallInterest
income/expenses on
JPY loans and deposits

1.200
1.000
0.800

-0.01746,0000.600

44,000

0.841

0.830

0.802

0.777

0.768

-0.00942,000Business loans

0.814

0.858

0.848

0.828

0.836

40,000

Personal loans

0.948

0.906

0.863

0.835

0.793

Public loans

0.465

0.412

0.379

0.344

0.406

0.008

42,923

44,11144,89645,870

21/3

22/3

23/3

47,4520.200-0.04238,000
0.062

0.400

0.000
20/3

24/3

9

Fees and Comｍissions

Juroku Bank nonconsolidated results Fees and commissions reached a record high due to increases in investment trust-related commissions at Juroku Bank and individual-related
revenue at Juroku TT Securities.

■ Fees and comｍissions(0.1 billion yen)

Individual-related

Corporate solution-related

Other

Fees and comｍissions (incl. Juroku TT Securities)<Juroku TT Securities> Individual-related

128

118
106

111

98

38

29

35

17

19

50

44

1

77
71

30

4

44

4

46

Syndicated loans andcommitment
fees
私募債手数料

Private placement bond fees

M&A fees

Business matching fees

16

20/3

21/3

24/324/3

25

20

22/3

23/3

M&A手数料(0.1 billion yen)
ビジネスマッチング手数料

28
24/3

コンサルティング手数料(0.1 billion yen)

27

17

19

20

3
2
2

5
1
2

8

10

11

20/3

21/3

22/3

4
1
3

24

17

32

Consultation fees

44
31

77

23/323/3

4
3

24■ Corporate solution-related revenue

Investment trust-related commissions

50

27

28

22/322/3(0.1 billion yen)

61

22

33

■ Individual-related revenue

Other

125

28

71

61
29

21/321/3

Life insurance agency
commission

126

Juroku Bank + Juroku
TT Securities

20

12
20/320/3

157

155

145

1
4
2
1

24
1
4
2
1

16

14

23/3

24/3

10

Securities Investment

Juroku Bank nonconsolidated results Valuation gains of securities increased 51.0 billion yen YoY to 91.3 billion yen overall.

■ Valuation gains and losses of securities
20/3

21/3

Stocks

552

Bonds
Other

23/3
(A)

22/3

(0.1 billion yen)
24/3
(B)

Difference
(B-A)

869

857

782

1,323

541

17

-3

-72

-168

-247

-79

-3

-27

-95

-211

-163

48

Foreign bonds *

42

-28

-64

-103

-57

46

Investment
trusts

-46

0

-31

-107

-105

2

Total

565

837

689

403

913

510

Derivative transactions (deferredhedging) *

-2

3

-

1

32

31

* For foreign bonds, deferred hedging through derivative transactions is used to reduce the risk of market
value fluctuations.

■ Balance of securities
Bonds

Stocks

15,721
1,363
12,629
1,439
2,529

2,454
1,608

Stocks

Other

Total

(0.1 billion yen)

913

837
689

565

403
552

869
17
△3

20/3

△3
△ 27

857
△ 72
△ 95

21/3

22/3

782

1,323

△ 168

△ 247

△ 211

△ 163

23/3

24/3

■ Bond duration

Foreign bonds

14,596
1,235
1,701
1,386

Investment trusts, etc.

14,649
1,350
1,690
1,337

(0.1 billion yen)

JPY bonds

14,729
1,345
1,523
1,855

6.82

(Year)

Foreign currency bonds

6.67
6.11
5.36

5.84

1,310
10,296

10,272

10,272

4.84

10,006

7,349

20/3

Bonds

•

21/3

22/3

23/3

24/3

2.57

2.68

23/3

24/3

The numbers reflect derivatives.

21/3

22/3

11

Credit Costs and Outstanding Non-performing Loans

Juroku Bank nonconsolidated results Credit costs decreased 0.9 billion yen YoY to 0.5 billion yen, a low level compared to past credit cost levels.
 The ratio of non-performing loans improved by 0.08 percentage points YoY to a record low of 1.27%.

■ Credit costs(0.1 billion yen)

20/3

21/3

23/3
(A)

22/3

(0.1 billion yen)

Differenc
e
(B-A)

24/3
(B)

Net transfer to general allowance for loan losses① Net transfer to general allowance
for loan losses

2

8

9

-6

-10

-4

② Disposal of non-performing loans

33

33

15

21

16

-5

Transfer to individual allowance
for loan losses

29

30

14

19

14

-5

35

Disposal of non-performing loans

41

25

33

③ Reversal of allowance for loan
losses

-

-

-

-

-

-

④ Recoveries of written-off claims

0

0

-

-

-

-

Credit costs ①+②-③-④

35

41

25

14

5

-9

■ Outstanding non-performing loans

33

15
9

8

20/3

21/3

22/3

20/3

21/3

22/3

23/3 (A)1000

Bankrupt and substantiallybankrupt claims

125

121

112

120

128

Doubtful claims

482

544

552

510

483

600

Substandard claims

20

27

22

21

20

-1

Total
Ratio against total claims
outstanding

628

692

687

652

631

1.41

8

800
-27

400
-21

1.51

23/3
Doubtful claims

Bankrupt and substantially bankrupt claims

危険債権
Substandard claims

Difference
(B-A)

要管理債権

1.48

16

5
△6

(0.1 billion yen, %)

24/3
(B)

14
21

2

Total credit costs

△ 10
24/3
(0.1 billion yen, %)総与信に占める割合
Ratio列1
against total claims outstanding

1.35

1.27

1.50

652

631

1.20

21

20

0.90

692

687

27

22

482

544

552

510

483

125

121

112

120

128

20/3

21/3

22/3

23/3

24/3

628
20

0.60

200
1.41

1.51

1.48

1.35

1.27

-0.08

0
Record low

0.30
0.00
-0.30

12

Juroku FG
consolidated
results

Profit from Customer Services and Group Companies

Juroku Bank nonconsolidated results

Profit from customer services decreased 1.6 billion yen YoY to 13.7 billion yen mainly due to a 1.1 billion yen decline in gain on revision of retirement benefits.
Total net income of subsidiaries excluding Juroku Bank that contributed to the consolidated results amounted to 1.946 billion yen, due to YoY increases in profits of four main companies.

■ Income from customer services(0.1 billion yen, %)Juroku Bank nonconsolidated results

20/3

21/3

22/3

23/3
(A)

24/3
(B)

Difference(B-A)

Income from customer
services

72

82

114

153

137

-16

Average loan balance × Loan todeposit spread

386

384

381

379

383

4

0.891

0.864

0.844

0.825

0.807

-0.018

Loan to deposit
spreadFees andcommissions

106

98

111

126

125

-1

Operatingexpenses

420

400

378

353

371

18

(0.1 billion yen)

Income from customer services= Average loan balance x Loan to deposit spread+ Fees &commissions – Operating expenses

153

137

114
72

82

20/3

21/3

22/3

23/3

24/3

■ Total net income of subsidiaries (excluding Juroku Bank) that contributed to Juroku FG consolidated results
Juroku TT Securities

23/3

Juroku Lease

24/3

23/3

Juroku Card

24/3

23/3

Subsidiaries total(excluding Juroku Bank)

Juroku Credit Guarantee

24/3

23/3

24/3

(Million yen)

23/3
(A)

24/3
(B)

Difference(B-A)

Net sales

2,918

3,263

26,94827,348

2,921

3,008

2,762

2,772

37,49838,506

1,008

Ordinary profit

569

870

427

460

226

246

1,579

1,645

2,770

3,190

420

Net income

384

587

297

315

146

159

1,099

1,147

1,871

2,158

287

Net income that contributed toconsolidated results

230

352

297

315

146

159

1,099

1,147

1,725

1,946

221

* Total profit/loss of Group companies excluding Juroku Bank and profit/loss of four main companies

13

Juroku FG
consolidated
results

Capital Adequacy Ratio and ROE

Juroku Bank nonconsolidated results

Capital adequacy ratio remained at a healthy level of 10.81% for Juroku FG on a consolidated basis and 9.67% for Juroku Bank on a non-consolidated basis.
ROE was 4.62% for Juroku FG on a consolidated basis and 5.08% for Juroku Bank on a non-consolidated basis, due to a large increase in net assets reflecting
the strong market.

■ Capital adequacy ratio
Juroku FG consolidated results

10.52

10.54

9.35

9.34

9.35

21/3

22/3

23/3

Juroku Bank non-consolidated results

10.81

2nd Medium-Term
Management Plan
Numerical target: 11%
or aboveLong-Term Vision
Target: 12% or above

(%)

9.93
9.27
9.67

8.71
20/3

24/3

28/3

33/3

■ ROE

(%)

Juroku FG consolidated results

4.83

Juroku Bank non-consolidated results

5.17

5.08

2nd Medium-Term
Management Plan
Numerical target: 5%or above

5% line

4.73

4.03

4.62

Decreased relative to a large increase in
net unrealized gain on available-for-salesecurities in net assets, reflecting strong
market conditions.

24/3

28/3

4.36

3.78
3.98
3.65
20/3

21/3

22/3

23/3

14

Juroku FG
consolidated
results

Cross-shareholdings

 Efforts continue to reduce cross-shareholdings (book value basis) by approximately 25% by the end of Mar. 2028 from the base book-value as of the end of Sept. 2022.
 Cross-shareholdings (market value basis) have been reduced by 20.7 billion yen since the end of Sept. 2022 amid the increase in market value due to stock pricefluctuation factors.

■ Cross-shareholdings (book value / market value basis)
Reduction policy

81 Cos. (Listed shares)
71 Cos.

Aiming to reduce the book value of cross-shareholdings (as of the end of Sept.
2022) by approximately 25% over five years.

68 Cos.
(0.1 billion yen)

[Reference]
Fluctuation in the market value ofcross-shareholdings

1,711

Market value basis *excluding deemedholdings

1,154

1,202

1,154

* Stock pricefluctuation factor (*)* End of Mar. 2024
Juroku FG calculation
based on stock priceBook value basis *excluding deemed holdings

1,711

763

Reduction
policy464
vs. Base year
Down 4.2B yen

448

431

vs. End of Sept. 2022

25%
reduction

421

vs. Base year
Down 20.7B yen

947

349

22／9
[Base year]

23／3

24／3

28／3
[Forecast]

22／9[Base year]

24／3

15

Juroku FG
consolidated
results

Shareholder Returns

Juroku Bank nonconsolidated results Due to increased dividend, the total payout ratio came to 37.5% and the dividend payout ratio came to 30.1% for FY2023.
 Acquired treasury stock for the third consecutive fiscal year with the ongoing aim of enhancing shareholder returns■ Shareholder return policy
Before change

After change (announced Mar. 2024)

In terms of profit distribution, Juroku FG’s basic policy is to continuously
pay stable dividends while striving to further improve its financial
robustness amidst diversifying risks surrounding financial transactions. Inview of business management conditions and income level, the Group
determines details of shareholder returns with the aim of achieving a total
payout ratio of at least 25%.

In terms of profit distribution, Juroku FG’s basic policy is to continuously
pay stable dividends while striving to further improve its financial
robustness amidst diversifying risks surrounding financial transactions. Inview of business management conditions and income level, the Group
determines details of shareholder returns with the aim of achieving adividend payout ratio of at least 30%.

■ Shareholder returns(Million yen, %)Dividends
share

per

(Parenthesis
indicateinterim dividends)

Total dividends
Acquisitionoftreasury stock

20/3

21/3

22/3

23/3

24/3

80 yen(35 yen)

90 yen(35 yen)

120 yen(50 yen)

130 yen(60 yen)

160 yen
10,000(70 yen)2,989 million
yen3,363 million
yen4,453 million
yen4,783 million
yen

8,000
5,839 million
yen

-

-

1,111 million
yen

1,111 million
yen

1,422 million
yen

23.2%

22.8%

32.3%

31.6%

37.5%

6,000

Total dividends
Acquisition of treasury stock
Total payout ratio
Dividend payout ratio

23.2

22.8

4,000
Total
ratio

payoutDividend payout
ratio

22.8%

* Paid by Juroku Bank up until the interim dividends for FY2021

26.0%

25.7%

32.3

31.6

26.0

25.7

1,111

1,111

30.1
1,422

35.0

25.0

Acquisition of treasury stock for 3 consecutive years

15.0
2,000

23.2%

37.5

2,989

3,363

20/3

21/3

4,453

4,783

5,839

22/3

23/3

24/3

30.1%

0

5.0

16

Juroku FG
consolidated
results

Business Projection and Dividend Forecast

Juroku Bank nonconsolidated results

 Taking into account the future developments in monetary policy and foreign exchange rates, business projection is for earnings to be in line with the previous year basedon a conservative estimate of credit costs.
 Annual dividends for FY2024 are forecast at 160 yen, consisting of interim dividends of 80 yen and year-end dividends of 80 yen.

■ Business projection(0.1 billion yen)

Juroku FG consolidated
results

2024/3(Results)

Consolidated core gross operating profit

2025/3(Forecast)(0.1 billion yen)(0.1 billion yen)

Juroku Bank nonconsolidated results

YoY

2024/3(Results)

2025/3(Forecast)

YoY

733

758

25

Core net operating profit

268

280

12

Net interest income

528

534

6

Net business profit

125

259

134

Fees and commissions

185

184

-1

Credit costs

5

39

34

Ordinary profit

260

251

-9

Net income

187

180

-7

Other operating profit (excluding
profit/loss on JBGs and other debt
securities)

18

40

22

Expenses

441

447

6

Consolidated Core Net Operating Profit

292

311

19

Ordinary profit

279

275

-4

Net income attributable to owners of theparent company

193

190

-3

■ Dividend forecast
19/3
Annualdividend
InterimYear-end

70 yen35 yen35 yenInterim dividends

20/3

80 yen35 yen45 yen21/3

90 yen35 yen55 yen* Paid by Juroku Bank up until the interim dividends for FY2021

22/3

23/3

24/3

(Yen)

Year-end dividends

25/3(Forecast)Commemorative
dividend
20 yen

90

160

90

80

80

130

120
80

160

120
yen

130
yen

160
yen

160
yen

70

50 yen60 yen70 yen80 yen

35

45
35

35

50

60

70

35
19/3

20/3

21/3

22/3

23/3

24/3

70 yen70 yen90 yen80 yenSpecialdividend
10 yenCommemorative
dividend
10 yen70

70

55

Commemorative
dividend
10 yen25/3(Projected)

17

Agenda01

Financial Results for FY2023

Initiatives for02
Enhancing Corporate Value

03 Initiatives for Sustainability
Progress in the 2nd
04
Medium-Term Management Plan
18

Juroku Financial Group History
2024 First Half

2021

2023

2028

2033

Long-Term Vision “16Vision-10” Staying Ahead of the Curve to Always Serve the Region

1st Management Plan

Expanding business domain/enhancing productivity

various industries(major cases)

4 basic strategies
Transformation strategy
Digitally transform Juroku FG

Human innovation strategy
Reforming awareness and behavior(2024.2)

New companies
established (since 2018.3)

Customer-first marketing strategy
Addressing various customer issues

Region-producing strategy
Activities integrated with the community(2023.7)

Taking all possible measures to address the lowinterest rate environment■ Consolidated net income: Over 20 billion yen■ Consolidated ROE: Over 5%■ Consolidated adjusted OHR: 50% level■ Consolidated capital adequacy ratio: Over 11%

Juroku Bank’s 150th anniversary

Juroku FG established

2nd Medium-Term Management Plan

Staying Ahead of the Curve to
Always Serve the Region■ Consolidated net income: Over 30 billion yen■ Consolidated capital adequacy ratio: Over 12%■ Sustainability KPIs Achieving FY2030 target

19

Juroku Financial Group Growth Strategy
Businesses that have a competitive advantage and can only growwithin our Group

Local/corporate
issues

Focused allocation of management resources(Perform comprehensive financial service functions)Managing
funds
Digitalization
supportAssetformation

JurokuDensanDigitalServiceFinancialintermediary function

Juroku TT
Securities

JurokuBank

Businesses that are expected to be in increasing demand by
the local community

Supporting capital
investments
JurokuLease
JurokuCard

Cross-industry collaborations (major cases)

Cashless support

Securities
Digitalization

JurokuCreditGuarantee

JurokuBusiness
Service
Kanda

Regional
Machiokoshi
development

Cross-industry collaboration / joint ventures

NOBUNAGA
Succession

Business
succession support

JurokuResearch
Institute

NOBUNAGA
Capital Village

CapitalsupportProductivity
improvement

DX
Business
succession

RetailHR placement /management support

20

Actions to Implement Management Conscious of Cost of
Capital and Share Price Implementing initiatives to improve PBR that lead to sustainable profit growth, higher ROE and reduction of cost of equity based on the logic tree.
FY2023Results

Improving PBR (enhancing corporate value)
Sustainable profit
growthAchieving long-term
vision / medium-term
management plan
Improving profitability(Improving RORA)

ROE improvement

Net income

Net income

Risk assets

Shareholders’equity

2nd Mid-Term Management Plan is on track, with profitability, efficiency and financial integrity showing improvement



Net interest income on deposits and loans: Up 0.5 billion yen YoY

Individual-related and corporate solution-related revenues: Up 0.3 billion yen YoYStrongly promote in-house DX by introducing GWS, etc.



NPL ratio hit a record low of 1.27%

Loan balance increased

Cross-shareholdings reduced by 2.7 billion yen

Optimal allocation ofcapital

Aggressive investment in DX and human capital (including wage increases)

Improved Group profitability led to higher earnings

Enhanced shareholder
returnsChanged shareholder return policy to “Payout ratio of at least 30%”
Increased dividends for 5 consecutive terms and acquired treasury stock for
3 consecutive terms

Lower performancevolatility



NOBUNAGA Succession establishedNew collaboration with Resona Group

Advanced sustainability
managementEnhanced quality/quantity of
dialogues with shareholders
and investors

Proactive messages
from top managementTop-line growth

Cost control

Optimal asset allocation
Controlling
capital adequacy
levelsRisk assets

Shareholders’equityEnhancing disclosureof information
including non-financial
information
Reducing cost ofequityPromoting enhanced IR
activities

Sustainability KPIs are on track thanks to collaboration between Group companies
through working group meetings, etc.
Enhanced disclosure of non-financial information including sustainability andhuman capital investment
Briefings by top management to disseminate management strategies were held in
June (66 attendants) and Dec. (75 attendants) of 2023.

2nd Medium-Term

Sustainability Management Plan--

p.46, 51

p.9, 10--

p.8, 12-p.47

p.9, 15---

p.40-42

p.47, 48

p.16

-

-

-

p.32, 33

p.49-

p.28, 29--

p.27-43

p.48

Delivered at earnings briefings

21

Actions to Implement Management Conscious of Cost of
Capital and Share Price

Total dividends have more than doubled over the past five years, while the number of shareholders has steadily increased.
The number of shares held by financial institutions and other entities has plummeted compared to FY2018, while the number of shares held by individuals and others has increased.
Oct. 2021
Juroku FG
established

Total dividends

No. of shares heldby shareholder type

More than doubled in 5 years
4.4B

4.7B

3.3B

2.6B

Dividends
per share(Unit: thousand shares)

5.8B

2.9B

70yen

80yen

90yen

120yen130yen160yen

19/3

20/3

21/3

22/3

23/3

24/3

19/3

20/3

21/3

22/3

23/3

24/3

Financial
institutions,etc.

13,17013,326

12,262

11,59910,512

9,785

Business
corporations

10,969

11,19911,288

11,384

11,28911,085

Foreigncorporations

4,956

4,187

4,926

4,505

5,005

6,349

Individuals,
etc.

8,260

8,654

8,894

9,431

9,773

9,274

Financial institutions, etc.
No. of shares held by financial institutions, etc.:
Down 26% in 5 years

No. ofshareholders

No. of shareholders is rising steadily
24K
23K

13,170

22K

18K

19K

Individuals, etc.
No. of shares held by individuals, etc.:
Up 12% in 5 years

D o w n

Up

2 6 %

12%

9,785

9,274

20K

8,260

19/3

20/3

21/3

22/3

23/3

24/3

19/3

24/3

19/3

24/3

22

Actions to Implement Management Conscious of Cost of
Capital and Share Price In recognition of our Group's efforts, our share price has risen 2.4 times since the Oct. 1, 2021 inception to 4,790 yen and market capitalization stood at 181.6 billion
yen as of Mar. 31, 2024.

Share price movement

Share price

Share price(2023/3/31)(2024/3/29)

240
Juroku FG

2,824 yen

Regional
bankaverage

791 yenNikkeiaverage

28,041 yen

4,790 yen

1.69x

220
Juroku FG

200

1,275 yen

1.61x

Regional bank average
Nikkei average

40,369 yen

1.43x

180

160

140

Share price development compared to
100 on Oct. 1, 2021, when Juroku FG
was established.

120

100

80
21/10

22/4

22/10

23/4

23/10

24/3

23

Actions to Implement Management Conscious of Cost of
Capital and Share Price PBR rose 0.14 points over one yea r.
 In addition to the recent improvement in ROE, the PBR increased significantl y in FY2023 due to a rise in PER.

PBR, ROE and PER movements(against 100 as of the end of Mar. 2017)

PBR movement

200

0.80

PBR improved

Rose 0.14 points overmainly due to a

one year154

rise in PER
150

0.60

0.40

ROE

100

0.40

PBR

100

0.40

0.31

0.23

70

0.26
0.22
0.20 0.21
50

0.20

PER

Feb. 2016 Negative interest rates
introduced
Headwinds in the financial industry
intensified

0.00

0

17/3

18/3

19/3

20/3

21/3

22/3

23/3

24/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3

24/3

24

Actions to Implement Management Conscious of Cost of
Capital and Share Price Loans affected by the rise in long-term interest rates: Fixed-rate loans totaling approx. 2 trillion yen
 Loans affected by the rise in short-term interest rates: Short-term / new long-term prime rate loans and market-rate loans totaling approx. 2.8 trillion yen

Yen balance sheet
composition

Total assets Approx. 7.4 trillion yen(as of end of Mar. 2024)<Management>
Loans

Loans
65.5%

Floating
interest
rate<Procurement>

Short-term / newlong-term prime
rate
32.3%

38.2%

Loan and deposit balances affected by therise in yen interest rates
Current deposits
12.3%

Deposits
86.9%

Liquiddeposits
63.4%

Impact of changes in long-term interest rates

Management
side
Ordinary deposits(non-settlement)

Market interest rate 5.9%

Loans Approx. 2.0
trillion yen

Impact of changes in short-term interest rates

51.1%

Fixed interest rate
27.3%

Management
side

Loans Approx. 2.8
trillion yen

Procurement
side

Deposits Approx.
5.4 trillion yen

Time deposits
23.5%

Bonds
13.5%

Affected by the rise in long-term interest rates
Stocks, investment trusts, etc. 4.2%
Other management total

Marketable procurement 2.1%
16.8%
Other procurement total

Depositswith the Bank of Japan

12.4%

Total capital

Affected by the rise in short-term interest rates

6.8%
4.2%

25

Agenda01

Financial Results for FY2023

Initiatives for02
Enhancing Corporate Value

03 Initiatives for Sustainability
Progress in the 2nd
04
Medium-Term Management Plan
26

Value-Creation Process
 Delivering value to all stakeholders through corporate activities in order to realize sustainability

27

Initiatives for Key Challenges (Materiality)
 We are promoting various initiatives in line with the Juroku Financial Group SDGs Declaration to address five key challenges (Materiality).

Key challenges

Initiatives

Business
Management

Revitalization of thelocal economy

 Supporting business foundation and new business operations
to foster future leaders of the local economy
 Supporting local companies’ main business operations andmanagement succession to contribute to their growth Supporting asset formation to achieve enriched living

Sustainable
Development of the
Local Community Creating comfortable and appealing communities
 Using local resources to create value that will benefit future
generations
 Promoting digitalization of local companies and local governments

Environmental
conservation andclimate change
actions

 Supporting local companies’ carbon neutral business management
 Implementing initiatives for environmental conservation andenvironmental impact mitigation
 Responding to climate change and disclosing informationin line with TCFD

Empowerment ofdiverse humanresources Building a corporate culture that boasts diversity as strength Implementing work style reform to provide a good work-life balance Creating workplaces that facilitate growth ofdiverse human resources and empower them

Advancedgovernance Advancing corporate governance Strengthening risk management and compliance Achieving stakeholder engagement28

Progress in Sustainability KPIs
 All Sustainability KPIs set in May 2022 have made steady progress based on the coordinated efforts of Group companies.

■ Targets by FY2030
Key challenges
Revitalization of thelocal economy
Sustainable
Development of the
Local Community
Environmental
conservation andclimate change
actions
Empowerment ofdiverse humanresources

Item
Sustainable finances provided(of which, environment field)
Balance of group assets in custody

2,000 billion yen

Mar. 2024 results (progress rate (*2))
(*1)

22.9%

(800 billion yen)459.4 billion yen(170.4 billion yen)

(21.3%)

550 billion yen

463.7 billion yen

84.3%

0.37 billion yen

18.5%

403 cases

13.4%

Social impact investment

2 billion yen

DX-support consultations

3,000 cases

(*1)

(*1)

CO2 emissions (vs. FY2013)

100% reduction

42.7% reduction

42.7%

Paper use (vs. FY2019 level)

50% reduction

33.5% reduction

67.0%

Percentage of female managers

20%

9.1%

45.5%

Percentage of paid leave claimed

80%

54.7%

68.3%

At least twice a year

8

400%

At least 10 times a year

30

300%

(*1) Cumulative total from Apr. 2022

■ On-going targets
Advancedgovernance
Advanced

Quantitative target

Initial response training for emergency
preparedness
Dialogue with investors(*2) Progress rate is calculated based on "Mar. 2024 results / FY2030 target.”29

～VISION～ and Key Challenges
 We are focusing on priority items of the five key challenges (materiality).

■ Targets by FY2030
Key challenges～VISION～

Revitalization of thelocal economy

Pr ovide a wide r ange of f inanc ial
s er vic es to help grow loc al bus ines s es
and r evitali ze the loc al ec onom y■ Local VC and CVC investment■ Asset formation support■ Balance of group assets in custody

Sustainable
Development of the
Local Community

Us e loc al res ourc es to c reatec om f or table and attrac tive towns , andpr om ote digitali zat io n of the loc alc om m unity■ Local revitalization initiatives■ Sustainable tourism development■ Social impact investment■ DX-support consultations■ Payment settlement solutions■ Cashless support

Environmental
conservation andclimate change
actions

W or k to r educ e the environm ental
im pac t and help loc al c om panies
ac hieve c ar bon neutralit y in order tobuild a dec ar bonized s oc iety■ Decarbonization support for local■ CO2 emission

Empowerment ofdiverse humanresources

Pr om ote diver s it y and work s tyler ef or m to c r eate a work plac e thatem power s diver s e hum an res ourc es

Priority items■ Sustainable finance■ Management succession consultation ■ HR placementcompanies reduction■ Conversion of sales fleet to HV/EVs■ Paper use reduction■ Development of female managers ■ Encouraging workers to claim paid leave■ Promoting parental leave for men ■ Development of IT / DX human resources■ On-going targets
Advancedgovernance

Advanc ing gover nanc e and dis c los ing
inf or m ation appr opriatel y to es tablis h a
tr ans par ent m anagem ent s truc ture

■ Third-party involvement in assessing the effectiveness of the Board of Directors■ Third-party involvement in assessing the advancement of the internal auditing
system■ Initial response training for emergency preparedness ■ Dialogue with investors

30

Materiality: Revitalization of the Local Economy
 Sustainable finances totaled 459.4 billion yen as of the end of FY2023, achieving 22.9% of the FY2030 target.
 The balance of group assets in custody as of the end of FY2023 reached 463.7 billion yen, achieving 84.3% of the FY2030 target.
Sustainability
KPIs

Sustainability
KPIs

Sustainable finances provided

Sustainable finances provided(of which, environment field)(0.1 billion yen)

20,000[FY2023 progress rate]
Vs. FY2030 target: 22.9%(of which, environment field: 21.3%)

916

2,348

3,452

Balance of group assets in custody
Juroku Bank

[FY2023 progress rate]
Vs. FY2030 target: 84.3%
3,973
3,639
3,445

Juroku TT Securities(0.1 billion yen)

5,500
4,637
2,500

2,241
1,824

1,559

1,663

(8,000)

1,886

1,976

2,149

2,396

FY2030[Target]

22/9

23/3

23/9

24/3

4,594

(322)

(859)

(1,193)(1,704)

22/9

23/3

23/9

24/3

(Cumulative total from Apr. 2022)[Definition]
Sustainable finances: Investments and loans for SDGs and ESG initiatives that contribute to realizing asustainable society
Environment field: Investments and loans for environmental impact-reducing initiatives

 Provided sustainable finances totaling 459.4 billion yen (of which, 170.4
billion yen in environment field) as of the end of Mar. 2024, achieving 22.9%(of which, environment field: 21.3%) of the FY2030 target

 Focused on Positive Impact Finance (PIF) and other financing products that
contribute to our business partners’ achievement of sustainable
management
 At Juroku Lease, leases related to SGDs, including decarbonization andlow-carbon, increased.

3,000

FY2030[Target][Definition]
Juroku Bank: Investment trusts; Juroku TT Securities: Stocks, bonds, investment trusts, fund wraps, etc.

 The balance of our group assets in custody reached 463.7 billion yen as ofthe end of Mar. 2024, achieving 84.3% of the FY2030 target.
 Of the total, Juroku Bank accounted for 224.1 billion yen (approx. 48%) and
Juroku TT Securities 239.6 billion yen (approx. 52%).
 For stable asset formation support, Juroku Bank focused on expanding theinvestment trust savings plan optimal for long-term, periodic and diversified
investment.
 Recurring fee income, including trust fees, rose in line with the increase in
assets in custody.

31

Materiality: Revitalization of the Local Economy
 NOBUNAGA Capital Village is accelerating investment in companies that have synergies with the local economy/finance and in companies capable of co-creating new
businesses.
 NOBUNAGA Succession has concluded 33 advisory contracts for management succession consulting since the July 2023 launch of operations.

Management succession consulting

Local VC/CVC investment[NOBUNAGA Capital Village] Investment activity


NOBUNAGA

CapitalVillage,[Juroku Bank / NOBUNAGA Succession] Solution activity

anLocal VC CVC

investment company, is making proactive

26

investments to offer new value andservices to the community.
8
It is accelerating investment in companies
that

have

synergies

economy/finance

and

with

the

local

in

companies

5
3
22/3

13
8
5
22/9

18
15

(Cases)

23/3

11
23/9

11
24/3

59

NOBUNAGA Succession provide

23

8

the

39

51

58

21/3

22/3

23/3

solutionsthrough

repeated dialogues with business

the business launch in July 2023

a month from Oct. 2023 to strengthen contacts with promising startups that gather in Aichi

has risen steadily due to intra-

Prefecture from all over Japan.
A social event aimed at fostering womengroup collaboration, etc.

childcare, entrepreneurial know-how, etc. andexchanged information on women's perspectives
ideas

that

can

lead

to

93

24/3

No. of consultations

554(Of which, M&A)

330

(Of which, advisory
agreements)

33

Seven contracts have been signed



To contribute to the promotion of SMEs by
supporting business succession, we signed
agreements with the Gifu City Credit Guarantee
Association in Sep. 2023, the Nagoya City Credit
Guarantee Association in Dec. 2023, theYamagata City of Gifu Prefecture and Yamagata
City Chamber of Commerce and Industry in Feb.
2024.

with 4 clients

Attendants shared tips on balancing work andopportunities.

15

The number of consultations sinceOct. 2024, consultation sessions and other events are being held at the facility three times

and

17

<NOBUNAGA Succession’s activities>

entrepreneurs was held in Feb. 2024.
62

owners.

In preparation for the opening of STATION Ai (the largest incubator facility in Japan) in

73

Bank and specialist members of

best(Cases)110

succession support office of Juroku

21<Start-up support by NOBUNAGA Capital Village>

M&A contracts concluded
Business succession consultationsof a successor, the management

126

To address pressing and important
local issues such as the absence

32(Cumulative total since inception in Apr. 2021)

capable of co-creating new businesses.

business

32

Materiality: Revitalization of the Local Economy
 In the area of asset formation support, we have focused on expanding investment trust savings plans, resulting in steady growth in monthly savings andcustomer numbers. We are also actively conducting financial literacy activities.
 In Feb. 2024, we started collaboration with Resona Group to strengthen the retail segment with plans to release a fund wrap and a banking application.

Asset formation support

New collaboration with Resona Group For customers’ stable asset formulation, we have focused on expanding
investment trust savings plans optimal for long-term, periodic, and diversified
investment. As a result, the amount of monthly savings and the number ofcustomers for investment trust savings plan have been increasing steadily.
Monthly installments
Number of clients
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100

14,59016,757

19,503(Million yen/clients)

22,12923,861

25,48027,66730,64330,00025,00020,000

352

482

649

816

934

1,055

20/9

21/3

21/9

22/3

22/9

23/3

1,160

1,296

15,00010,000
5,000

23/9

24/3

 We held a seminar based on Juroku MONEY COLLEGE, a systematic
financial education menu aimed at increasing financial literacy.
 In Oct. 2023, we produced Nobunaga Money Study, a financial board game,with the aim of providing upper grade elementary school students with anopportunity to learn about finance and their hometown while having fun.

Education activity(As of end of Mar. 2024)
JurokuMONEY COLLEGE
Nobunaga Money Study

Sessions
held todate

No. ofattendants
to date

51

7,136

7

504

 In Feb. 2024, we launched strategic business alliance with Resona HD in
the retail segment.
 By utilizing the products andservices of Resona Group,
which has superior solutions,
our
Group
will
providecustomers in the Chukyo
region, our business area, withproducts and services that werepreviously unavailable in thisregion.
 We will continue to deepen thecore business of Juroku Bank,
the core company of ourGroup.

PlannedreleasePlannedreleaseSpring 2025 Banking app

Fall 2024 Fund wrap

Asset formation layer

RisonaFund Wrap

Target Segregation
Affluent class33

Materiality: Sustainable Development of the Local Community The number of partner municipalities for CoLoRs, a hometown tax donation matching service for companies, has grown significantly to 34, resulting in a surge in
donations.
 In May 2024, we signed an agreement with Shirakawa Village in Gifu Prefecture, home to the Shirakawa-go World Heritage Site, to support financial resource
development for regional revitalization.
Sustainability
KPIs


Social impact investment<CoLoRs partner municipalities>

Investment amount grew steadily due to growing transactions for local crowdfunding
platform OCOS,
Target tosupport provided using JTA’s subsidy onachieve by
2.0 billion yen
FY2030united local community initiatives, and arise in the number of partner municipalities
FY20230.37 billion yen
for the hometown tax donation matching
results(Progress rate: 18.5%)
service for companies.

[Kanda Machiokoshi] Local crowdfunding platform OCOS


Local crowdfunding platform OCOS,
launched in Sept. 2022, has been boostingtransactions steadily in line with anincrease in the number of posted projects
and higher name recognition.
Referrals from Juroku Bank has also
increased, vitalizing inter-group cooperation

Partnered with 34 municipalities in Gifu
and Aichi Prefectures■ Gifu Prefecture■ Within Gifu Prefecture (cities, towns, villages)
Shirakawa Village, Gero City, Ena City, Kasamatsu Town, Mino
City, Toki City,
Yaotsu Town, Yoro Town, Ikeda Town, Nakatsugawa City,
Mizunami City, Anpachi Town,
Ibigawa Town, Ono Town, Sekigahara Town, Yamagata City,
Wanouchi Town, Tarui Town,
Kitagata Town, Seki City, Tajimi City, Kawabe Town, Godo
Town, Mizuho City,
Minokamo City, Kaizu City, Motosu City, Gujo City, Mitake Town

Cumulative total (as of Mar. 2024)■ Within Aichi Prefecture (cities, towns, villages)

No. of projects
posted59

Okazaki City, Kasugai City, Nisshin City, Inazawa City

No. of purchases
made

4,435

Total amount ofpurchases

59.29 million[Kanda Machiokoshi] “Comprehensive Cooperation Agreement for
Regional Revitalization” with Shirakawa Village


In May 2024, we signed "Comprehensive Cooperation Agreement for Regional
Revitalization" with Shirakawa Village in Gifu Prefecture.



Shirakawa Village, home to the Shirakawa-go World Heritage Site, plans to invest in thedevelopment of a sustainable village by attracting businesses, creating industries, andtaking measures for overtourism.



Kanda
Machiokoshi
supports developmentof financial resources
necessary for theseprojects through thehometown
tax
matching
supportbusiness for companies
and other services.

[Kanda Machiokoshi] Hometown tax donation matching service forcompanies

The number of partner municipalities forthe hometown tax donation matching
service for companies, outsourced from
Gifu Prefecture in Oct. 2023, has risen to34.
The number of donations using CoLoRs
reached 104 as of the end of Apr. 2024,
amounting to 79.30 million yen.

Cumulative total (as of Apr. 2024)
Partner
municipalities

34

No. ofdonations

104

Amount of
donations79.30 million(As of May 2024)

34

Materiality: Sustainable Development of the Local Community
 In FY2023, Juroku Densan Digital Services received 277 orders for business streamlining and other projects, contributing to the digital transformation of local
companies.
 Through Group collaboration, Juroku Lease began co-creating businesses with a start-up company in May 2024 to revitalize the region.
Sustainability
KPIs

Cashless support

DX-support consultations(Cases)

3,000[FY2023 progress rate]
Vs. FY2030 target: 13.4%



403
245

Promoting cashless transactions
at municipalities, schools, etc.,
where cashless needs are
anticipated

No. of corporate and other card clients
No. of legal entity card clients
No. of member store contracts

43(Contracts/clients)

3,317

2,564

182
1,627

1,708

134

854

83
828

1,295

425
386

797

1,135

1,508

22/9

23/3

23/9

24/3

(Cumulative total from Apr. 2022)

126

48
22/9

23/3

23/9

24/3

Local revitalization initiatives

FY2030[Target](Cumulative total from Apr. 2022)



Educating clients on the efficiencyof expense management andcompliance with the Electronic
Books Maintenance Act, andsuggesting introduction of legal
entity cards, corporate cards, etc.

[Juroku Lease] [NOBUNAGA Capital Village] Collaboration cases

Juroku Densan Digital Services received 277 orders in FY2023 through referrals fromGroup companies and external collaborations.

In May 2024, Juroku Lease started co-creating
businesses with YADOKARI, a company thatBreakdown of DX support consultations (FY2023)

provides services using trailer homes (operating

Businessstreamlining

78

Sales force
strengthening

13

Infrastructure

38

Sales inventory
control

7

Time and attendance
management

36

Accounting

5

Sales channel
expansion

10

Information security

5

Payroll

13

Other

72

assets), in which NOBUNAGA Capital Village
invested through CVC.


The use of trailer home has proved effective inbusiness continuity plans and in promoting new
local attractions as a way to provide overnightaccommodations in areas with no lodging facilities,

as a demonstration store with low initial costs, andas a facility during disasters.

35

Materiality: Environmental Conservation and Climate Change
Actions
 Efforts are underway to respond to climate change and disclose information based on TCFD recommendations.

Apr 2024
Mar 2023
Joined PCAF

June 2021
Declared support for
TCFD recommendations
Mar 2022
Declared support for
TCFD recommendations

Nov 2021
Introduced CO2-freeelectricity
 Juroku Bank Head Office
Building

May 2022
Disclosure of TCFD recommended items
 Scenario analysis (transitional risks andphysical risks)
Set CO2 reduction targets
 2030: 50% reduction vs. FY2013
 2050: Achieve carbon neutrality

Participated in TNFD Forum

New

Participated in GX League

Feb 2024
Acquired CDP’s “B”
ratingDec 2022
Acquired CDP’s “B”
ratingNov 2022–Mar 2023
Participated in the portfolio carbon
analysis pilot program sponsored by
MOEJ

New

Oct 2023
Introduced CO2-free electricity
 Juroku Bank Computer
Center and Office Center
Sept 2023
Building
Revised CO2 reduction target upward 2030: Achieve carbon neutrality
May 2023
Disclosure of TCFD recommended items
 Calculated categories 1-15 in Scope 3
Acquired third-party guarantee
 Scope 1, 2

May 2024
Disclosure of TCFD
New
recommended items
 Expanded the scope of Scope 3
calculation
Acquired third-party
New
guarantee
 Scope 1, 2, 3

36

Materiality: Environmental Conservation and Climate Change
Actions
 Paper usage was reduced by 33.5% compared to FY2019, due to the introduction of lot scanners and digitalized operation using Google Workspace (GWS).
 The share of HV/EVs in the total sales fleet has increased to 12.6% as of Mar. 2024.
Sustainability
KPIs

Conversion of sales fleet to HV/EVs

Paper use (vs. FY2019 level)(Thousand sheets)

Number of HV/EVs owned
HV/EVs as a percentage of total vehicle fleet(units, %)136-33.5%-50%

50.0

50,48048,96645,73041,72653

33,55625,240FY2019 21/3
[Base year]

22/3

23/3

24/3

FY2030[Target] Reduced photocopying of financial statements and repetition of operational
contents by introducing lot scanners

 Digitalized operations by introducing Google Workspace (GWS) Migrated various management books, handover materials, etc. to GWS due
to abolition of faxes
 Reduced paper use by 33.5% in FY2023 compared to FY2019 (base year)

31

12.6

2.9

4.9

22/3

23/3

24/3

FY2030[Target] Started using Corolla HV, Yaris HV, Alto HV, etc. in Oct. 2022

 Replaced 83 gasoline vehicles with HV/EVs in FY2023 with the aim ofachieving 50% HV/EVs in our sales fleet by FY2030
 After about 18 months of full-scale EV/HV introduction, the number of
HV/EVs was 136 in Mar. 2024, increasing to 12.6% of the total 1,073
vehicles owned.

37

Materiality: Environmental Conservation and Climate Change
Actions As of Mar. 2024, CO2 emissions (Scope 1 and 2) have been reduced by 42.7% from FY2013 levels, and we are on track to achieve carbon neutrality by FY2030.

Sustainability
KPIs

Metrics and targets

CO2 emissions (vs. FY2013 level)

13,110(t-CO2)CO2 emissions
Our Group calculates its supply chain emissions (scope 3) in addition to its own CO2emissions (scope 1 and 2).

-42.7%

Measured items
Scope 1

Direct emissions

Scope 2

Indirect emissions

6,153

Category 1

Purchased goods and services

14,761Category 2

Capital goods

7,199

0

Category 3

Fuel- and energy-related activities notincluded in Scope 1 and 2

1,468

FY２０３０【Target】

Category 4

Upstream transportation anddistribution

1,857

Category 5

Waste generated in operations

50

The target of “reducing CO2 emissions by 50% from FY2013 levels by FY2030” wasCategory 6

Business travel236

moved up in Sept. 2023 to "achieve carbon neutrality in FY2030.”

Category 7

Employee commuting

Category 13

Downstream leased assets

Category 15

Investment (listed stocks andcorporate bonds)

353,201

Investment (business loans)

3,153,964

Carbonneutrality

7,879

FY２０１３
【Base
year】




22/3

7,508

23/3

7,504

24/3

CO2 emissions (Scope 1 and 2) as of Mar. 2023 were reduced by 42.7% compared to
FY2013 (base year) due to the introduction of CO2-free electricity in the Computer
Center and Office Center Building in Oct. 2023.

CO2 emissions (t-CO2)(Preliminary results)

Scope 3

1,351

2,940
428

Upgrades of building air conditioning systems and LED conversions are ongoing.
For the emissions of the investees/borrowers (Scope 3, category 15), calculations are
based on the PCAF standard measurement method. In addition to business loans,
calculations for listed stocks and corporate bonds started in FY2023.

38

Materiality: Environmental Conservation and Climate Change
Actions With an expanded menu of decarbonization support and enhanced decarbonization advisory services, the number of companies we help calculate their GHG emissions
and set reduction targets has grown significantly.
 In Mar. 2024, in recognition of these efforts, we received the “Minister of the Environment Award for Best Practices (Regional Category)" under the Principles for
Financial Action for the 21st Century.

<Principles for Financial Action for the 21st Century>

Decarbonization support for local companies[Juroku Bank] Decarbonization management support for business
partners
 We actively support local companies in calculating their GHG emissions andsetting reduction targets, and our decarbonization consulting service,
Carbon Neutral Navigator Supported by WasteBox, has handled over 200
cases in total.
 The number of companies obtaining “SBT certification” through thedecarbonization consulting service has risen significantly.
No. of orders
Carbon Neutral Navigator

FY2021

FY2022

FY2023

47

91

79

2

43

109

SBT certification support* SBTs (Science Based Targets) are mid- to long-term GHG emission reduction targets for companies thatare consistent with the levels required by the Paris Agreement and that commit to a certain level of reduction

Received the “FY2023 Minister of theEnvironment Award (Regional
Category)" In recognition of these efforts, we received
the “Fiscal 2023 Minister of theEnvironment Award for Best Practices(Regional Category)" under the Principles
for Financial Action for the 21st Century inMar. 2024.

[Juroku Lease] One-stop support through Carbon Neutral Program As the first carbon neutral program by a regional bank-affiliated lease
company, Juroku Lease provides one-stop support for visualizing “CO2emissions ⇒ reducing CO2 emissions through energy conservation, energy
generation and fuel conversion ⇒ offsetting CO2 emissions that cannot be
reduced.” Started participating in the Tokyo Stock Exchange Carbon Credit Market in
Dec. 2023

compared to a base year set by the company.

 In Aug. 2023, we launched TriaNet Zero, a system that continuously andaccurately calculates GHG emissions, to support creation of a climatetransition plan and emissions reduction implementation.
Number of TriaNet Zero contracts (FY2023)

161

 In Mar. 2024, we launched carbon offset certification support andstrengthened consulting for calculating and offsetting GHG emissions for
products manufactured and sold by our customers.

Participation in TNFD Forum and GX League
 In Apr. 2024, we supported the efforts of the Taskforce on Nature-related
Financial Disclosures (TNFD) and participated in the TNFD Forum.
 In Apr. 2024, we supported the Ministry of Economy, Trade and Industry's
basic concept of the GX (Green Transformation) League and participated in
the GX League, which aims to achieve carbon neutrality through industry,
government, academia, and financial institutions.
New

New

39

Materiality: Empowerment of diverse human resources The ratio of female managers rose 1.4 percentage points YoY to 9.1% in FY2023.
 The paid leave utilization rate was 54.7% in FY2023 as a result of work-life balance promotion.
Sustainability
KPIs

Sustainability
KPIs

Percentage of female managers

Actively promoted women to management positions, raising the ratio of female
managers to 9.1%.

Implemented systematic human resources development for female senior managers
who are expected to be promoted to senior management positions in the future.

Plans are to appoint a female employee who started her career at our company to theposition of Director and Executive Officer (the first at a regional financial institution in the
Tokai region) as of June 20, 2024.

(%)
Ratio of women serving
senior and higher positions
11.8% (as of Mar. 2024)

4.2

5.5



Aiming for an 80% paid leave utilization rate as part of work style reform initiatives toachieve a good work-life balance.

In FY2023, the paid leave utilization rate was 54.7%, and the number of days taken was
11.0 days.
No. of paid leave claimed (H2)
No. of paid leave claimed (H1)
Percentage of paid leave claimed

80

20.0
60

9.1
6.7 7.1 7.7 7.9

Percentage of paid leave claimed

48.2

54.4

54.0

54.7

5.71

5.51

4.76

5.32

5.49

22/3

23/3

24/3

47.7

(Days / %)

80.0

21/3

22/3

23/3

24/3

4.16
4.74

4.54

5

FY2030[Target]

4.76

6.44

0

0
20/3

21/3

Development of IT / DX human resources



15

10

40
20

20/3

20

All employees taking the IT Passport Exam to acquire basic IT knowledge
Supporting the acquisition of higher qualifications through enhanced training, incentives,and off-site courses

FY2030[Target]Promoting parental leave for men(As of end of Mar. 2024)

No. of successful applicants

During FY2023

The utilization rate of the spousal maternity leave system, which aims to encourage

male participation in childcare, has remained high at over 90% since its introduction in
IT Passport Exam

1,031

351

Advanced digitalrelated qualifications

147

62

2017.


To raise awareness of the parental leave systems, the HR Department sends out
notices to eligible employees and disseminates information via intranet.

40Materiality: Empowerment of diverse human resources With a focus on securing excellent human resources to implement human capital management, we plan to hire 150 new graduates in FY2025.
 As part of our efforts to improve engagement, we have decided to increase starting pay for the second year in a row and implement wage increases.

Human capital investment

Initiatives to improve engagement<New graduate recruitment activity><Starting pay increase>

We plan to hire 150 new graduates in FY2025, up from 126 in FY2024

FY2024

To ensure a diverse workforce rooted in the community that can maximize their skills forthe community, we will increase starting pay for new hires from FY2024.

FY2025 (planned)(Effective July 1, 2024)

No. of new
graduate hires

126

Currently

150
University/graduate-school graduates<Job Return System>

Under the Job Return System, for which we have started accepting applications in linewith the new HR system, we plan to hire one applicant for the Systems Division and one
applicant for the Sales Division.



partners and current employees on secondment

Times held
Meetings (Dec 2023 - Mar 2024)

5

Total
participants
181<Retention System>With the system further expanded since Apr. 2023, 104 employees used the shortworking hour system for child care in FY2023.

260,000 yen

Implemented an average base-pay increase of 4.5% to reward each employee's
motivation and challenging spirit and to respond to rising prices

Built an alumini (retirees) network by holding a total of five regional partner meetings from
Dec. 2023 to Mar. 2024 to share information with former employees working at business

230,000 yen<Pay increase><Regional partner meetings>

After increase

Average pay increase of 5.2% combined with regular pay increase

Base payincrease

Regular pay
increase

Average

Average

Average

+4.5%

+0.7%

increase

5.2%(Effective July 1, 2024)

The highest base pay increase in 42 years since the 4.9% increase in 1982



Wage increases of up to 13% for young employees and an average of 9.2% for senior
employees to promote higher motivation

41

Materiality: Empowerment of diverse human resources
 To enable employees to take on career challenges in a wide range of business areas, we use an internal recruiting system to assign personnel to Group companies andpartner companies in different industries.
 As we focus on developing human resources that can maximize their skills for the benefit of the community, annual training costs, annual training hours and thenumber of trainees are increasing.

Human resources development

Use of human resources

We strategically support employees who take on challenges autonomously for thecommunity and implement optimal staffing based on each individual's ideas andpersonality.



We focus on developing human resources who can maximize their abilities for thecommunity and build trust with customers.
Annual training costs, total annual training hours and total number of trainees haveincreased.

<Career-Challenge System>To enable employees to take on career challenges in a wide range of business areas, weuse an internal recruiting system to assign personnel to Group companies and partnercompanies in different industries.



In FY2023, there were 128 applicants, of which 14 were placed in positions of their choice.

Even for employees who were not selected, we strategically place them in key positions
based on their ideas and areas of expertise as identified through interviews and othermeans.

FY2021-2022

FY2023150

128<Annual training costs>(Thousand yen)

In particular, before the recent establishment of new companies, the number of applicants
was 5 to 8 times higher than the capacity of about 10 people.
•

Juroku Densan Digital Service (established Mar. 2022) ⇒ 48 applicants•Kanda Machiokoshi (established Apr. 2022) ⇒ 83 applicants•

NOBUNAGA Succession (established July 2023) ⇒ 61 applicants<Expert System>In order to diversify careers and develop professional human resources, we launched theExpert System in FY2024, and 44 people applied for the system.

Annual training hours
111111111

22222222

Number of participating trainees(Ten thousand hours)

¥10

9.6
52,086(Thousand people15
)

12.1
10

7.7

70,545¥5

5.2

32,827

6.7

7.9

¥0

FY2021
<Total annual training hours / total numberof trainees>

FY2022 FY2023

50
FY2021

FY2022

FY2023<Expansion of the qualification incentive program>

Asset Building Consultant, Chief of Money Lending Operations, and Carbon Accounting
Advisor Level 3 have been added to the list of eligible qualifications.



Our target is to have 500 employees certified as Carbon Accounting Consultants Level 3.

To develop professional human resources, we increased the incentive amount for CPA,
SME management consultant, securities analyst, FP (Level 1) and CFP, which are highly
demanding qualifications and certification exams.

42

Materiality: Advanced Governance We held 8 sessions of the initial response training for emergency preparedness (progress rate: 400%) and 30 dialogue sessions with investors (progress rate: 300%)
during FY2023.
 In Mar. 2024, we established the Human Rights Policy to promote respect for human rights in corporate business activities amid growing awareness of human rights
in Japan and abroad.
Sustainability
KPIs


Third-party involvement in assessing the effectiveness of
the Board of Directors

Initial response training for emergency
preparednessHeld 8 sessions of the initial response training in FY2023 against a target of at least 2
per yearOn-going targets

At least twice a year

During FY2023

8 times (Progress rate: 400%)

Training contents

BCP training for wind, flood and earthquake scenarios, cyberattack
exercise, etc.

Conducted a survey in the form of a questionnaire in FY2023 with advice from anexternal organization
Based on the results of the analysis and evaluation of the questionnaires, we confirmedthat our Board of Directors is functioning appropriately and that the effectiveness of theBoard as a whole is ensured.

Third-party involvement in assessing the advancement of
the internal auditing system


Implemented third-party-involved assessment to enhance the internal auditing system[Ref.] Skills matrix of our directors (main skills, experience, etc. of directors)
Sustainability
KPIs



Conducted 30 dialogues sessions in FY2023 against a target of at least 10 sessions
per yearContinuing to reinforce initiatives aimed at achieving proactive dialogue and enhancing
dialogue content

On-going targets

At least 10 times a year

During FY2023

30 times (Progress rate: 300%)

Establishment of Human Rights Policy andestablishment/revision of various policies


Directors who are
Audit & Supervisory
Board members



In March 2024, we established the Human Rights Policy to promote respect for humanrights in corporate business activities amid growing awareness of human rights in Japanand abroad.
Established the Procurement Policy to realize a sustainable society, and revised the
Ethics Policy and Investment and Loan Policy to establish a management control
system and gain the trust of society.

Directors who are not Audit & Supervisory Board members



Dialogue with investors

Corporate
management

Finance

Representative Director andChairman●Naoki Ikeda

Representative Director andPresident

AkihideIshiguro

HR

Regional
Revitalization

●

●

●

●

●

Finance/

Legal / risk

Accounting

management

●

●

●

●

●

Director and Deputy President

●

●

●

Yukiyasu
ShirakiDirector and Senior Managing
Executive Officer●●

Yoshiaki Bito

Director and Managing
Executive Officer●●

Hiroyuki Ota

Director●●

Satoko Ito

Outside Director

Yasushi
Ueda

Outside Director●●

NaohikoIshikawa

Director●●

ShinjiIshihara

Outside Director

Satoe Tsuge

Outside Director

Name

Current position in Juroku FG

Yukio Murase

ESG/
sustainability

●

●

●

●

●

●

●

●

●

●

●

●

●

●

43

Agenda01

Financial Results for FY2023

Initiatives for02
Enhancing Corporate Value

03 Initiatives for Sustainability
Progress in the 2nd
04
Medium-Term Management Plan
44

Overview of the Long-Term Vision
 We aim to address social issues while achieving sustainable growth and value as a company.

<Long-Term Vision “16Vision-10” (Overview of April 2023–March 2033)>
Long-Term Vision

Staying Ahead of the Curve to Always Serve the Region

Values Considered Important in the Long-Term
VisionCustomers
The Juroku Financial Group will move forward
alongside people who live and undertake activities
in the region.
The Group will understand customers well andidentify with them to solve challenges together.

Contributing to the local community(customers, Directors and employees,
shareholders) by achieving “Sustainability”(i.e., creating social value) and “Growth” (i.e.,creating economic value) with “Purpose”
serving as our driving force.

Directors and employees
We Directors and employees share our aspiration tocontribute to the region in which we grew up.
The Group will develop an environment where all
Directors and employees can bear this aspiration inmind and perform at their full potential.

We want to develop people and companies
thriving in this region where we grew up!

Targets of the Long-Term Vision
FY2032 target level
Business growth

Solving social issues

Consolidated net income: 30 billion yen or above
Consolidated capital adequacy ratio: 12% or more

Contributing to creating a sustainable
societyEnhancing quality of life in the region

Becoming a frontrunner of theregion and society

Making a foray into new businessdomains
Directors and employees growing andbeing empowered

Solving various social issues
Achievement of sustainability KPIs (FY2030 target)

45

Overview of the 2nd Medium-Term Management Plan We worked on four basic strategies of the 2nd Medium-Term Management Plan with the mindset of creating new value by taking on fast-paced reform initiatives during
the Plan’s 5-year period.

Staying Ahead of the Curve to Always Serve theRegion: 1st stage

2nd Medium-Term
Management Plan

Creating new value by taking on fast-paced reform initiatives
during the Plan’s 5-year period(April 2023–March 2028)

The 4 basic strategies

Transformation strategy

Human inovation strategy

From reform tocreation

Maximizing the value of human resources

Realizing sustainability based ontransformations

Developing an organizational environment inwhich each Group Director and employee canbe empowered on a voluntary basis

Employing the

Sustainable
society

16 Group Energy
Customer-first marketingstrategy

Region-producing strategy

Offering services that exceed customer
expectations

Becoming a new force that draws out the
involvement of the region

Boosting solution-presenting capability andenhancing sales to resolve diverse challenges

Getting more involved in the region andcreating a region resilient to situations
including emergencies

Expansion of new businessdomains

JurokuFG

Society sought after
by people

Demonstration of comprehensive
financial service functions
Enhancement of core business(loans and deposits/exchange)

Our mission

A society thatcan realize
diverse types ofhappiness

Resilientsociety

Achieving customer/local growth and prosperity

Long-Term Vision
1st Management Plan

Numerical targets
for FY2027

Profitability2nd Medium-Term Management Plan

Consolidated net income: 20
billion yen or above
Consolidated ROE: 5% or more

Efficiency

Next Medium-Term Management Plan

Consolidated adjusted
OHR: 50% level

Fiscalintegrity

Consolidated capital
adequacy ratio: 11% or more46

Transformation strategy
 Digitalizing various operations and empowering the creativity of all employees to maximize group productivity

Efforts to improve operational efficiency

PICK UP Introduced Google Workspace (GWS), a new groupware, at Juroku Bank in
Sept. 2023 for DX promotion under the full cooperation of SoftBank Integrated the groupware of all 11 group companies by Mar. 2024, andembarked on "true transformation" through renewed communication
 Plans are to expand the use of smartphones to enable a more agile work
style, using smartphones remotely while away from the office or in transit andtaking advantage of time gaps (planned for summer 2024).
 From FY2024, all new employees will be provided with Juroku Net tablet PCs
to realize completely paperless new employee training.

[Juroku Bank] Reducing workload by accelerating
digitalization
 Focused on digitalization and going paperless by promoting business/channeltransformation
 Improved branch operation efficiency by increasing the service menu of thein-store tablet and expanding centralized loan operations using lot scanners,
etc.
 Workload reduced by introducing GWS
Reduction in workload (vs. end of Mar. 2017)(10,000 hours)

IT investment
 In addition to IT investments to maximize productivity, including in-store
tablets, lot scanners and GWS, plans are to invest in banking applications,etc.
IT investment (0.1 billion yen)

Major strategic and streamlining
projects (over 100 million yen)

In-store tablets Phase I

70.0

86.3

20/3

21/3

128.7

22/3

154.6

23/3

 Productivity improved through digitalization
Core net operating profit per employee (thousand yen)

In-store tablets Phase II

13,69713.0

14,615

15,475GWS
Next-generation

8.4

24/3

[Juroku Bank] Core net operating profit per employee

Lot scanners

12.7

195.0

8,703

9,614

network lines
FY2021

FY2022

FY2023

SharePoint
20/3

21/3

22/3

23/3

24/3

47

Human innovation strategy
 Implementing initiatives to enhance the motivation and skills of all employees, thereby creating an organizational environment where each individual
can work independently and fully demonstrate their potential

Implementation of a new HR system

PICK UP

Meetings with young employees by the President and Chairman
PICK UP Reviewed the new evaluation system under the new HR system, the Basic
Competencies Review and the Diversity Review
PICK UP

Sustainability Meeting “Sustainability News: Diversity Interviews" are being distributed within thecompany, featuring employees who are active in diversity in both theirprofessional and personal lives, including interviews with their managers.

FY2022

FY202312

 Conducted branch visits to measure retention of the system

 Regularly holding Sustainability Meeting from Aug. 2022

 Launched the Expert System designed to promote the empowerment ofdiverse human resources Total of 27 meetings held up to FY2023 with 157 attendees

Personnel exchange with various industries

15

 In order to achieve our long-term vision, it is important that every employee ismotivated and satisfied with their work. With a focus on listening to how each
employee really feels, each meeting is held with a very small group of 5 or 6
people.

 Conducted personnel exchanges with various industries to gain outside
expertise and integrate it with our know-how
PeriodDetails

Apr. 2023

Accepted 3 employees from Softbank(A total of 5 employees including those accepted in May 2022)

Oct. 2023

Accepted 2 employees from Tokai Tokyo Financial Holdings

Apr. 2024

Dispatched 2 employees to Tokai Tokyo Financial Holdings
Dispatched 1 employee to STATION Ai

New scholarship repayment support system established In May 2024, we established a new scholarship repayment support program
to provide interest-free loans for scholarship repayments as part of thecompany's benefits package to improve employee financial wellness.

48

Customer-first marketing strategy
 In addition to deepening the core business, we will address various needs of our customers and the region by maximizing the group functions andexpanding into new business domains catering to societal needs.

Strategic business alliance with Resona Holdings P I C K U P

New NISA and original investment trust funds

 Launched a strategic business alliance with Resona HD in the retail segment
in Feb. 2024

 Conducted New NISA campaign and other initiatives
to expand NISA accounts

 We collaborate in both the realanddigitalrealms,sharing
information and expertise andworking together toward a new
ideal of retail banking
 This alliance is a pillar of our retailstrategy to "demonstrate the true
value of our core business" atJuroku Bank, the core Group
company.

 In Jan. 2024, Juroku FG (Juroku Bank and Juroku
TT Securities) launched its original New NISAeligible fund, Gifu/Aichi Region Support Fund(nicknamed Nobunaga Fund).
No. of NISA accounts

54,851
37,578 39,810

Collaboration with start-ups
 Promoted Group collaboration for Nudge Card (a credit card tailored to fan
activities in the Tokai area), with which NOBUNAGA Capital Village isaffiliated.

Agreement signed between Juroku Card and GIFUSHO In Feb. 2024, Juroku Card and GIFUSHO signed anagreement to cooperate with students of Gifu
Prefectural Gifu Commercial High School, which
operates GIFUSHO, to develop and sell more attractive
products.
 This has helped to create the social value of going
cashless in the region and attract new customers fromthe younger generation.

21/3

21/9

41,868 43,824
22/3

45,11347,881

23/3

23/9

22/9

24/3

Problem solving through personnel placement
 Since Juroku Research Instituteexpanded
into
personnel
placement in Apr. 2019, thenumber of placement contracts hasreached a record high.
 In addition to personnel placement,
we support customers' HR affairs
by offering seminars for new
employees
andHRsystemconsulting services.

Successful placement

110
29

28

20/3

21/3

60

58

22/3

23/3

24/3

49

Region-Producing Strategy
 Making the most of our Group’s wide-ranging business domains, we will play a central role in contributing to the revitalization of the local economy and the sustainable
development of the local community.

New headquarters “16 FG Office & Park”


PICK UP

Construction of a new headquarters building is planned in 2027, the 150th anniversary of
Juroku bank's founding, to realize the Group's management philosophy.

Centralizing headquarters functions to create a Group-wide business promotion systemThe building is intended to enhance

Collaboration with Mino City, Gifu Prefecture
Received the “Award from Secretary General of Secretariat for Promotion ofRegional Revitalization, Cabinet Office” for excellence in public-private
partnerships in 2023


Juroku Bank's "Initiatives for Restoration of Old Private Houses Using Historical
Resources" conducted with Mino City, Gifu Prefecture was selected as the mostoutstanding example of public-private partnership for regional revitalization SDGs by the
Cabinet Office, and received the “Award
from Secretary General of Secretariat for Promotionof Regional Revitalization, Cabinet Office.“
Contributed to solving the problem of vacanthouses in the region and creating new tourism
demand by restoring old private houses while
utilizing historical resources such as the uniquetownscape and Hon-mino traditional Japanese
paper.

the attractiveness and circulation of

the downtown area with a base of
beautiful and comfortable common

spaces and a workplace that isahead of its time.
Realizing Gifu City's vision of“Creating a spacethat supports thecreationoflivelinessby

Regional contribution activities by women's project teamconnecting
livelinessAt the same time, we began offering a unique service called “Nursery School Study
Abroad®” by utilizing our network, providing co-working space for parents of preschool
children coming from large metropolitan areas.

as

a



source of vitality forthe realization of aWith the 16FG Office & Park expected to revitalize the downtown area of Gifu City,
events were planned based on women's opinions to continuously revitalize the area.
Activities by Jewelia, a project team made up of female employees, started in Feb. 2020

sustainable city”

Gifu Prefecture Designated Financial InstitutionAt the Gifu Prefectural Assembly held in Mar. 2024, it was decided that Juroku Bank
would serve as the designated financial institution for Gifu Prefecture for a period of five
years from Apr. 2025 to Mar. 2030.

Contributing to the administrative efficiency of Gifu Prefecture and enhancing theconvenience of services for prefectural residents

1st and
2nd events

Theme

No. of businessparticipantsJan. 2024

Marche for beautyand health

9Mar. 2024

Art of Parents andChildren

850

Progress against numerical targets of the 2nd Medium-Term
Management Plan Efforts to improve the profitability, efficiency and financial integrity of the Group continue under the four basic strategies of the 2nd Medium-Term Management Plan.
Numerical
targetNumerical
target

Maintained
stable income
Consolidated net income (100million yen)

Consolidated ROE (%)

Numerical target: 20
billion yen or above

Efforts to improve profitability continue

Numerical target:
5% or above

4.36
3.98

99

106

18/3

19/3

Numerical
target128

20/3

Adjusted OHR (%)

147

21/3

171

22/3

193

186

23/3

24/3

Efforts to further improve efficiency
continue

4.73

4.62

23/3

24/3

3.65
2.94

3.05

18/3

19/3

Numerical
target

20/3

21/3

22/3

Maintained
high financial integrity
Consolidated capital adequacy
ratio (%)
Numerical target:
11% or above

82.49

10.81

75.19
68.69

66.51

Numerical target:
50% range

18/3

19/3

20/3

21/3

58.87

58.90

22/3

23/3

9.15

9.08

18/3

19/3

60.20

24/3

9.93

10.52

10.54

21/3

22/3

23/3

9.27

20/3

24/3

51