ANNUAL REPORT

2020

Year Ended March 31,2020

Sustained contribution to the regional communities
Management Principle

Strive to become a financial group that “endear ourselves to the regional
community by providing services tailored to customers’ needs, whilevaluing “broad networks of relationships” and “an enterprising spirit.”

Management Policy

1. Create a “most trusted by customers” financial group which
respects personal relationships and promotes honest andapproachable banking.
2. Create a financial group with a commanding regional presence byresearching and predicting trends to provide advanced, high-quality services.
3. Pursue transparent operations and live up to the trust of theshareholders, while maintaining a competitive edge through strong
financial standing, high profitability and management efficiency.
4. Promote “coexistence with the region” by utilizing industrial,academic and management networks for business matching.
5. Focus on gaining the trust of the communities through compliancewith laws and regulations and corporate activities that are considerate of the environment.
6. Provide a workplace for employees of the financial group which
encourages employees to exercise talents and develop skills, with
an emphasis on proactive self improvement, thereby contributing to
the development of upstanding citizens.

Vision 25

We contribute to build a future society where everyone can be active,
by offering absolute solutions to our regional customers and developing our potential ability.

Basic Policy

1. Offer the most suitable solutions exactly from customers’ point ofview through the various issues of customers.
2. Create a workplace where employees can be active in diverse
fields by meeting customers’ trust.
3. Contribute to realize a sustainable development of the regional
communities and reliable and fulfilling life of regional customers
through our business activities.

CONTENTS
Top Message ……………………………………………… 2
Progress of the Fourth Medium-TermBusiness Plan ……………………………………………… 3
Toward 2025, the Year of Growth in
Osaka and Kansai
Formulating “Vision 25,” ourselves
Future Image ……………………………………………… 5
ESG/SDGs initiatives
ESG/SDGs initiatives Increase
Corporate Value …………………………………………… 7
FY2019 Financial Results ………………………………… 8
Corporate Governance …………………………………… 9Compliance Structure …………………………………… 17

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SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

Risk Management Structure …………………………… 19
Approach to Facilitation of Financing ………………… 23
Corporate Information………………………………… 25

Business Description of the Group …………………… 27
Organization and Board of Directors ………………… 28
Consolidated Financial Informationof Senshu Ikeda Holdings ……………………………… 31
Non-consolidated Financial Informationof The Senshu Ikeda Bank (Unaudited) ……………… 70

Top Message

I sincerely thank you for your continued support of Senshu Ikeda

minimizing securities investment, we posted net income of ¥3.9

Holdings Group.

billion,¥0.1 billion less than forecast, almost as planned.

Today we are confronted with a huge calamity. The novel

In May we launched “Vision 25”, the 3rd arrow, as our new

coronavirus (COVID-19) infections caused production andmanagement vision. This vision serves as our important guideconsumption slowdown not only in Japan but all over the world.

leading up to World Expo 2025 in Osaka, and we achieve

The government declared state of emergency in Osaka and Hyogo

innovation in productivity by further transforming branch andPrefecture, areas where we operate business, and covid-19 has achannel management, appropriately distributing management

tremendous impact on economic and social activities. However,resources and strategically strengthening human resources.

our officers and employees will make efforts to achieve our

All of our officers and employees will strive to overcome thesemission, financing our customers in the regional communities anddire situations with the regional communities and realize oursustaining a settlement function. I would like to overcome these

new management vision. Appreciate your continued patronage

difficult situations with all of you.

and support.

As regards the performance of Senshu Ikeda Holdings, Inc. for the
fiscal year ended March 2020 (FY2019) and our management
strategy, three years from FY2018 to FY2020 have been positioned
as a period for strengthening our business structure under the
Fourth Medium-Term Business Plan. We have made progress on
disposing of unrealized losses on securities,1st arrow(completed in
FY2018) and revising branch management ,dramatic reductions ofcosts, 2nd arrow (completed in FY2019).
By steadily promoting our transformation, we have achieved corebusiness profits from FY2018, and more than originally planned in

Atsushi Ukawa
Representative Director, President and CEO
June, 2020

FY2019 as well.
Despite downward pressure such as stock price fluctuations in themarket and credit costs due to the spread of COVID-19, by

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 20202

Progress of the Fourth
Medium-Term Business Plan
2 018

Fourth Medium-Term Business Plan
1st Arrow

2nd ArrowFundamental disposition of unrealized losses on securities Completed in FY2018
Net unrealized gain on available-for-securities¥1.7 billion

Results for FY2018
Achieved the Medium-Term Business Plan goalfor disposition of foreign bonds ahead of schedule, and posted unrealized gains compared tounrealized losses in FY2017
Restrained securities investment and strengthened transactions with customers in regional
communities (our core business)
In order to ensure strengthening of ourbusiness structure for the future, we will
restrain profit and dividend levels, and further promote structural innovations.

Staffed branches

21Branches

Reorganization
29

61

Areas

Areas

32

Supervising branches
29
Retail branches 41
Personal branches 14(Satellite branch 1)* Area system: A system that consolidates the financing operations of multiple
branches into area supervising branches

Results for FY2019
Branch-in-branch (20 of 21 branches completed)
Area system introduction (29 areas)
Rearrange staff (sales/financing) from 84 branches to
29 areas (retail branches: 41; personal branches: 14)
to improve efficiency
Expand centralization of branch operations to operating centers

営業人員

End of FY2019

45%migrated

End of FY202075

約850%migrated
約750

営業増員

Unablemigrate名+約to50(Cash, etc.)

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

約900
+約50

本部営業
20%
+約50名

FY2021

5%

Full-banking service branches 32

March 20193

Review and expand scale of branch management according to branchin-branch system and area system*, from branch management focusedon a block system planned in the initial Medium-Term Business Plan

Introduce tablets to teller services

Mostly completed
in FY2019138

Revisions to branch management andpursuit of business operations on acustomer-first policy Mostly completed in FY20192018年 4 月

2019年 9 月

2021年 3 月
（中期経営計画）

SENSHU IKEDA HOLDINGS,INC.

May
10-year anniversaryof merger

2020

World Expo 2025
in Osaka

SDGs

2025

2030

2021

Fifth Medium-Term Business Plan
3rd Arrowp.

Looking ahead 10 years, we have formulated “Vision 25” as ourselves future image toward 2025,
the year of great growth for Osaka and the Kansai region

5-6

We contribute to build a future society where everyone can be active, by offering thorough solutions to our regional customers anddeveloping our potential ability.
Business Performance Progress of the Fourth Medium-Term Business Plan
Core business profit

Core business profit¥4.5 billion(¥ billion)

Non-interest income(individual/corporate commissions, other)(¥ billion)

PlannedY-o-Y + ¥0.6 billion
Compared to plan + ¥1.9 billion

3.9

9.0

8.7

PlannedNon-interest income¥9.3 billion
Y-o-Y + ¥0.6 billion
Compared to plan + ¥0.3 billion

Cost reduction(Personnel expenses, property costs, etc.)(¥ billion)

46.3

46.3

FY2016FY2017

Planned

42.7

Expenses¥41.7 billion

43.6

Y-o-Y - ¥1.0 billion
Compared to plan - ¥1.9 billion

7.2

2.6

5.9

(0.6)
(1.9)
FY2016FY2017FY2018FY2019FY2016FY20172018(¥ billion)

FY2018FY20192019

FY20182020
Medium-Term Pre-COVID-19 After COBusiness Plan projections VID-19 impact

Net income

Actual (forecast)

6.1

(4.0)

3.9

(5.7)

(5.7)

(4.0)

Core business profit

Actual (forecast)

3.9

(3.5)

4.5

(3.7)

(4.4)

(3.4)

Cost of strengthening businessstructure (loss)

B/S-related issues (disposition of unrealized loss on securities)

9.2

(3.1)

3.1

(0.0)

(0.0)

(0.0)

(impairment losses on branches)

1.9

(0.9)

0.5

(0.3)

(0.1)

(0.1)

(credit cost)

2.3

(2.9)

2.5

(3.1)

(3.1)

(4.0)

P/L-related issues

FY2019Post-Fourth MediumTerm Business Plan
(Approx. 8.0)

Strengthening business structure mostly completed in FY2019
In view of the impact of the spread of COVID-19, we have revised FY 2020 profit forecast conservatively.

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 20204

Toward 2025, the Year of Growth in Osaka and Kansai

Formulating “Vision 25,” ourselves Future Image

Vision’25
We contribute to build a future society where everyone can be active, by offering thorough solutions to our regionalcustomers and developing our potential ability.

Basic Policy
1. Offer the most suitable solutions exactly from customers’ point of view through the various issues of customers.
2. Create a workplace where employees can be active in diverse fields by meeting customers’ trust.
3. Contribute a sustainable development of the regional communities, reliable and fulfilling life of regional customers throughour business activities.

Thorough solutions that responds to future social issues and meets customer needs
Future social issues and customer needs

Balance sheet of potentialsl Advance of low birthrate and ag-

Customer-Oriented CX*

Advantages

Alliances

Customer-first business practices

Prosperous business areas

Open collaborations
Cast off closed innovation
Industry, academia, government

ing population

Individuals l Response to extension of asset
life and smooth succession ofl No. of companies, wealthy classassetsThorough solutions
l Founders aging

Corporationsl Creation of new technologies
and services, response to digita-

Business feasibility evaluations
SDGs

lization and globalization

World Expo, IR, Umekita
Second Phase
Services, productsl Senshu Ikeda Tokai Tokyo Securities

l Regional revitalization throughl Shizen Soken

World Expo/integrated resorts (IR)Regions

Resourcesl Employment, business succession, M&Al Senshu Ikeda Capitall Response to serious labor short-

Diverse human resources
Small numbers of exceptional talent
Strategic partners

age*Acronym for customer experience.

l Accelerating action to achieve SDGsl Response to a “new normal”

Small- to medium-sized enterprises
Ventures
Individuals
KPI

Personnel referrals, M&A and business succession, business plan formulation, overseas business support
Subsidies, innovation funds, sales channel expansion support
Life plan counselling, wealth management, elderly lifestyle support
Number. of cases of solution consulting*: 4,000 in FY2019 ➞ 10,000 in FY2025*On a project basis

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SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

SENSHU IKEDA HOLDINGS,INC.

Develop a Structure to Support Vision 25
We appropriately distribute business resources to rebuild our branch - channel framework and strategic priorities,with a view to
5 years into the future that we have 1,800 staff members.
1. Branch and channel framework
Present

2025

Staff: 2,350

Staff: 1,800

61 areas

61 areas

Supervising branches 29

Full-banking service branches

Solution business
Staffed branches in areas that aggregate small- to medium-sized enterprises and wealthy class, offer consulting and solution business

Digitize banking operations
Personal branches

Independent branches 32
Sub-branch
1

Deploy tablets
Introduction of tablets to 80% of teller services
Enable transactions at sites other than branches
Replace staffed with tablets➞ Maintain network and improve efficiency

Corporate branches
Retail branches

Personal branches

41

Offer information hub

Enhance digital channels
Enhance convenience for customes through nonface-to-face transactions

Tablets(self-service, few staff)

14

ATM

ATM

Digitize ourselves
New revenue by utilizing data
Offer products and services that further emphasize
customer convenience

Digital channels (website, apps)

Digital banking (next generation-type banks)

2. Distribute resources properly

3. Human resources strategy

Estimate 2025 personnel headcount and composition—Understand outlook for securing future workforce
Select strategic priorities (refine strategy based on the following perspectives)l Thorough analysis of customer needsl Perspective of achieving SDGs in regions
l Perspective with a view to the new normall Each strategy’s cost/benefit comparison, etc.

Formulate resource distribution plan

Conduct systematic human resources development in line with strategic prioritiesl Systematically nurture personnel according to Vision 25

Review personnel system, etc.
l Improve employees’ job satisfaction
Diverse and flexible workstylesl Reward specialized and professional talent, wages based on job evaluation

Formulate roadmap to assure execution of priority strategies / Actively distribute business resources (people, things, budget)

Offer the most suitable solutions
from customers’ point of view

Create a workplace where employees
can be active in diverse fields

Contribute a sustainable development of the regional communities, reliable and fulfilling life of regional customers

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

6

ESG/SDGs initiatives

ESG/SDGs initiatives Increase
Corporate ValueESG activities of Senshu Ikeda Holdings

E

Management
Philosophy

Environment

Winning theManagement
Policytr us tfr o m soc ie ty

GS

Social“C oe x is te nc e

with r e g iona lc om m unitie s”

G

GovernanceI mp r ovi n g
b u si n es s

tra n sp ar en cy

Strengthening Corporate Governance
Strengthen the corporate
governance structureInternal

outside7

4
Directors

11

One outside director
adding, 4 outside
directors
Appoint first female
director

Introduce a succession plan
Selection of executive candidates
Establish position requirements
Introduce 360-degree evaluation ofmanagerial employees

In January 2020 the Group established its “Basic Rules for Succession Management,” and from FY2020, it has kicked off the “Successor
Development Plan,” which systematically stipulates the selection of executive candidates and other matters pursuant to the Basic Rules
upon consultations by the Personnel Committee.

B a s e d o n m a n a g e m e n t p h i l o s o p h y a n d m a n a g e m e n t p o l i c y,we will strive to continue our unwavering contributions toregional communities through initiatives for ESG/SDGs.
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SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

SENSHU IKEDA HOLDINGS,INC.

FY2019 Financial Results
Business Performance
Non-interest income

Net interest margin¥37.8 billion- ¥0.7 billion¥9.3 billion

year-on-year+ ¥0.6 billion
year-on-year(¥ billion)

38.8

38.3

(¥ billion)

38.5

8.7

Planned Actual

38.5 37.8

PlannedActual9.0 9.3

7.2
5.9

FY2016FY2017FY2018FY2019FY2017FY2018FY2019Core business profit*

Cost reduction¥41.7 billion

FY2016¥4.5 billion- ¥1.0 billion
year-on-year+ ¥0.6 billion
year-on-year(¥ billion)

46.3

46.3

(¥ billion)

3.9
42.7

PlannedActual

4.5

Actual43.6 41.7

Planned

2.6

(0.6)
(1.9)
FY2016FY2017FY2018FY2019FY2016FY2017FY2018FY2019*Lending balance × deposit/lending interest rate margin + fees and commissions – operating expenses¥10.8 billion
Senshu Ikeda Holdings group consolidated net income¥3.9 billion

Core banking profit(- ¥0.0 billion year on year)(- ¥2.2 billion year on year)

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 20208

Corporate Governance

The Company is a holding company with subsidiaries suchas the Senshu Ikeda Bank, which upholds the Management
Principle of striving to become a financial group that“endear ourselves to the regional community” by providing
services tailored to customers’ needs, while valuing “broad
networks of relationships” and “an enterprising spirit.” Inorder to ensure sustainable growth and the medium- tolong-term enhancement of corporate value, the Company isengaged in initiatives to develop its corporate governancein line with the following basic principles.
(1) We respect the rights of our shareholders and strive
to ensure their equality.
(2) We consider the interests of stakeholders and strive toensure appropriate cooperation.
(3) We disclose corporate information in an appropriatemanner and strive to ensure the transparency of suchinformation.
(4) The Board of Directors and the Audit & Supervisory
Board strive to enhance the effectiveness of theirsupervision and audits of the execution of duties inline with their fiduciary responsibilities for ourshareholders.
(5) We strive to engage in constructive dialogue with ourshareholders in order to contribute to sustainablegrowth and the medium- to long-term enhancement ofcorporate value.

Outline of Corporate Governance Structure andReasons for Adopting the Structure
The Company has adopted a corporate governancestructure for sustainable enhancement of its corporate
value through reinforcing supervision of management byelecting the outside directors and cooperating with the
Audit & Supervisory Board.
Specifically, directors who are familiar with banking
business – involving complex and sophisticatedmanagement decisions – supervise business execution ofrepresentative directors, while audit & supervisory board
members audit business execution of directors throughattendance to important meetings and inspection of critical
documents. The Company reinforces its corporate
governance structure through outside directors and outside
audit & supervisory board members (hereinafter “outside
officers”) who possess well-seasoned characters andinsights presenting meetings including the Board of
Directors and expressing their opinions actively.
The Company has concluded a liability limitationagreement with outside officers to the effect that their
liability for damages set forth in Article 423, Paragraph 1, of
the Companies Act shall be the amount prescribed by
Article 425, Paragraph 1 of said Act, in accordance with therelevant provisions of the Articles of Incorporation of theCompany, as long as they perform their duties in good faithand without gross negligence.

Corporate governance functions within the Company
l The Board of Directors
The Board of Directors is comprised of 11 directors
including 7 internal directors (Takayuki Ota, Atsushi
Ukawa, Hiroo Maeno, Yasuki Hosomi, Shinji Inoue,
Toshiyuki Wada and Hiromasa Hirai) and 4 outside
directors (Minoru Furukawa, Takao Koyama, Tomokazu
Yamazawa and Atsuko Ogasawara), and Atsushi Ukawa,Director, President and CEO, serves as Chairman of theBoard of Directors. The Board of Directors is held once a

9

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

month in principle, attended also by audit & supervisoryboard members, to make decisions on critical businessexecution including basic management policies andmanagement plans, and to supervise the businessexecution of directors and executive officers under therules of the Board of Directors.
l Personnel Committee
The Personnel Committee has been established todeliberate matters including the selection of candidates
for directors. The Committee is comprised of 5 directors
including 1 internal director (Atsushi Ukawa) and 4
outside directors (Minoru Furukawa, Takao Koyama,
Tomokazu Yamazawa and Atsuko Ogasawara) andAtsushi Ukawa, Director, President and CEO, serves as
Chairman of the Committee. The Personnel Committee,
as a voluntary advisory body to the Board of Directors,
accepts the involvement and advice of independent
outside directors (Minoru Furukawa, Takao Koyama,
Tomokazu Yamazawa and Atsuko Ogasawara), for the
purpose of ensuring the objectivity and transparency ofboard functions and strengthening corporate
governance.
l Remuneration Committee
The Remuneration Committee has been established todeliberate matters including compensations for directors.
The Committee is comprised of 5 directors including 1
internal director (Takayuki Ota) and 4 outside directors(Minoru Furukawa, Takao Koyama, Tomokazu Yamazawa
and Atsuko Ogasawara), and Minoru Furukawa, outside
director, serves as Chairman of the Committee. The
Remuneration Committee, as a voluntary advisory bodyto the Board of Directors, accepts the involvement andadvice of independent outside directors (Minoru
Furukawa, Takao Koyama, Tomokazu Yamazawa andAtsuko Ogasawara), for the purpose of ensuring theobjectivity and transparency of board functions andstrengthening corporate governance.
l The Audit & Supervisory Board
The Audit & Supervisory Board is comprised of 5 audit &supervisory board members including 2 internal audit &supervisory board members (Susumu Kawakami and
Satoshi Kitagawa) and 3 outside audit & supervisoryboard members (Toshiaki Sasaki, Seiji Morinobu andKohei Nakanishi), and Susumu Kawakami, audit &supervisory board member, serves as chairman of theBoard. Each audit & supervisory board member audits
business execution of directors through attendance toimportant meetings including the Board of Directors andthe Management Committee, inspection of critical
documents and other means, according to the auditing
guidelines and audit schedule decided by the Audit &Supervisory Board. Outside audit & supervisory board
members are qualified with high degree of integrity alongwith superior insight and capability, as well as expertiseand hands-on experience in respective area of specialty,
providing advice on management from diversified pointsof view.
l Management Committee
With the purpose to make more prompt management
decisions, the Management Committee has been
established under the Board of Directors. The
Management Committee is comprised of internal
directors (Takayuki Ota, Atsushi Ukawa, Hiroo Maeno,
Yasuki Hosomi, Shinji Inoue, Toshiyuki Wada andSENSHU IKEDA HOLDINGS,INC.

Hiromasa Hirai) executive officers with titles and officers
commissioned with responsibilities and Atsushi Ukawa,Director, President and CEO, serves as chairman of theCommittee. The Management Committee is held once aweek in principle, attended also by internal audit &supervisory board members, to make decisions on
critical matters concerning the business execution as
well as to discuss agenda items for the Board of
Directors based on the authorities delegated by the
Board of Directors. The Management Committee accepts
appropriate involvement and advice of outside officers
who attend the Committee as needed and express theiropinions.

Status of Auditsl Audits by audit & supervisory board members
a. Organization and Personnel of Audits by Audit &Supervisory Board Members
The Audit and Supervisory Board is comprised of 2internal and 3 outside members. The Company has
allocated several staff members who support theduties of Audit & Supervisory Board Members.
The status of each Audit & Supervisory Board Member
and their attendance at Audit & Supervisory Board
meetings for the fiscal year under review is as follows:
Attendance at
the Audit &Supervisory
Position
Name
Past experience, etc.
Board
Meetings in
the fiscal year
under review
100%
Audit &
Shigeru Mr. Shigeru Aoyagi assumed the(20/20)Supervisory Aoyagi position of Director of The Senshu
Board
Ikeda Bank, Ltd., a Group company,
Memberafter having served as General(Full-time)
Manager of sales department andPersonnel Affairs Division.
Following appointment as Director,
he successively held the positionsof Officer in charge of sales
department, General Affairs Division
and Regional Headquarters. He has
been involved in the management
area for many years and has a wide
range of knowledge and experience.
Audit &
Susumu Mr. Susumu Kawakami assumed the 100%
Supervisory Kawakami position of Executive Officer of The(20/20)
Board
Senshu Ikeda Bank, Ltd., a Group
Membercompany, after having served as(Full-time)
General Manager of market
department and sales department. As
an Executive Officer, he successively
held the positions of Officer incharge of Regional Headquarters,
Personnel Affairs Division, General
Affairs Division and Risk
Management Division. He has been
involved in the management area formany years and has a wide range ofknowledge and experience, as wellas considerable expertise in financeand accounting gained throughengaging in finance and accounting
operations.

Position

Name

Past experience, etc.

Audit &
Toshiaki Mr. Toshiaki Sasaki has abundant
Supervisory Sasaki
experience and a wide range ofBoard
insights through his experience as
Memberan Audit & Supervisory Board(Outside)
Member at financial institutions formany years.
Audit &Seiji
Mr. Seiji Morinobu has a wide range
Supervisory Morinobu of experience and insights as an
attorney.
Board
Member(Outside)
Audit &Kohei
Mr. Kohei Nakanishi has a wide
Supervisory Nakanishi range of knowledge and expertiseBoard
regarding international finance as
Memberwell as experience on corporate(Outside)management and insight into
corporate governance through his
experience as a director at banks
and an outside director at othercompanies.

Attendance at
the Audit &Supervisory
Board
Meetings in
the fiscal year
under review
100%(20/20)100%(20/20)95%(19/20)Each Audit & Supervisory Board Member audits thebusiness execution of directors through attendance atimportant meetings such as the Board of Directors andthe Management Committee, as well as inspection ofcritical documents, according to guidelines such as the“Guidelines for Audits by Audit & Supervisory Board
Members” and the “Guidelines for Implementing Audits
of Internal Control System,” generally subject to theauditing guidelines and audit plan decided by the Audit& Supervisory Board, as an independent body mandatedby shareholders.
b. Status of Main Activities of the Audit & Supervisory
Board
Audit & Supervisory Board meetings are held once amonth, in principle, and in the fiscal year under review
they were held a total of 20 times. In accordance withthe auditing guidelines, audit plan, audit
methodologies, responsibilities for audit tasks andother items resolved upon at the Audit & Supervisory
Board at the beginning of the fiscal year, full-time Audit& Supervisory Board Members report on theiractivities, and opinions are exchanged with directorsof the Company and from each Group company. In
addition, the Audit & Supervisory Board also gives
consent to the election and dismissal of accounting
auditors, amounts of remuneration and other matters.
c. Status of Main Activities of Audit & Supervisory Board
Members
In accordance with the auditing duties decided uponat the Audit & Supervisory Board, full-time Audit &Supervisory Board Members execute audits
objectively and rationally through their attendance atimportant meetings, inspection of critical documents,
auditing visits, and reports from each division of
headquarters.
SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 202010

In addition, auditing effectiveness is enhanced
through the exchange of opinions with the internal
audit division and each Group company, as well aswith accounting auditors. Part-time outside Audit &Supervisory Board Members enhance theeffectiveness of audits by their participation in Board of
Directors’ meetings, as well as by exchanging opinionswith directors and accounting auditors at Audit &Supervisory Board meetings, and receiving audit
activity reports from full-time Audit & Supervisory Board
Members.
Audit & Supervisory Board Members andaccounting auditors perform their audit duties
efficiently and effectively by establishing close mutual
cooperation through exchanging opinions about
various auditing issues at regular meetings to
exchange information. In addition, efficient andeffective audit duties are also performed by working
together with the Audit & Supervisory Board Membersof subsidiaries, as well as through close mutual
cooperation between Audit & Supervisory Board
Members and the internal audit division such as Audit& Supervisory Board Members’ attendance at internal
audits and the exchange of opinions.
l Internal Audits
The Company has established the Internal Audit Divisionthat conducts internal audits based on the basic rules of
intra-group audits, set out to provide objectives andguidelines of internal audits. The Company’s Internal
Audit Division comprises 12 members of whom 11 serve
concurrently in the Internal Audit Division of the banking
subsidiary (as of March 31, 2020). The Internal Audit
Division conducts internal audits on each division of theCompany based on the internal audit plan approved by
the Board of Directors each year. The Internal Audit
Division also conducts internal audits on each Group
company, as necessary, on its own or by cooperating
and coordinating with internal audit divisions of thesubsidiaries, etc. and provides specific instructions andadvice on the improvement of operations, in addition to
managing and overseeing internal audit operations of theentire Group.
The Company develops effective internal audit
structure that has independence and expertise in orderto ensure soundness and adequacy of operation. The
Company also inspects and evaluates adequacy andeffectiveness of the risk management and internal control
practices, and makes recommendations as appropriate
to the senior management of the Company on ways toimprove and rectify questionable areas. Thus theCompany’s internal audit guidelines facilitate effective
achievement of management objectives including theimprovement of the Group’s internal management
structure and the enhancement of its enterprise value.
l Accounting Audits
Name of the auditing firm
Ernst & Young ShinNihon LLC
Successive period of audit services provided
Ten years and 6 months (audit contract dating from
October 2009 at the time of the Company’s founding)
The Bank of Ikeda (currently The Senshu Ikeda Bank)
concluded an audit contract with Ernst & Young
ShinNihon LLC (then Showa Audit Corporation) in 1976.
The Senshu Ikeda Bank, established through a merger

11

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

between the Bank of Ikeda (currently The Senshu Ikeda
Bank) and the Senshu Bank, subsequently continued theaudit contract with Ernst & Young ShinNihon LLC.
Certified public accountants who conducted the latest
accounting audit
Mr. Hideya Nanba and Mr. Tetsuro Tone
Starting with the appointments and replacements for the
fiscal years commenced since April 1, 2016, the lead
audit engagement partner is not permitted to re-engage
in audits after engagement of five consecutive fiscal
years, and other audit engagement partners are notpermitted to re-engage in audits for five consecutive
fiscal years after engagement of seven consecutive fiscal
years, which is a rotation rule more stringent than as
regulated in laws and regulations.
Composition of assistants for the accounting audit
Assistants for the accounting audit of the Company are
15 certified public accountants and 29 others.
Policy and reasons for selecting the auditing firm
In accordance with the Practical Guidelines for
Cooperation with Accounting Auditors, released by theJapan Audit & Supervisory Board Members Association,
the Audit & Supervisory Board of the Company regularly
checks if the accounting auditors conform to auditing
standards, quality control standards, the practicalguidelines for auditing, internal regulations of the auditing
firm, to which they should conform as professional
specialists, and keeps itself updated on accounting
standards, through inquires and dialogues. The
Company has selected the aforementioned certified
public accountants and others as a team responsible forthe accounting audit, after comprehensively examining
their track record of auditing and execution of duties forthe previous fiscal year, which led the Company todetermine that the appropriateness and reliability ofaccounting audits can be ensured.
The Audit & Supervisory Board shall dismiss anaccounting auditor, subject to unanimous consent of theaudit & supervisory board members, if it determines thatthe accounting auditor satisfies one or more of theconditions described in the provisions of Article 340,
Paragraph 1 of the Companies Act.
If the Audit & Supervisory Board examines the status of
the execution of duties by the accounting auditors anddetermines that the appropriateness and reliability ofaccounting audits cannot be ensured, the Audit &Supervisory Board shall determine the content of a
proposal for a general meeting of shareholders on
dismissing or refusing to reappoint the accounting
auditors dismissal or non-reappointment of theaccounting auditors.
Content of the Audit & Supervisory Board’s evaluation of
the auditing firm
In accordance with the Practical Guidelines for Audit &Supervisory Board Members, etc. in developing theStandards for Evaluating and Selecting Accounting
Auditors, released by the Japan Audit & Supervisory
Board Members Association, the Audit & Supervisory
Board has established the Standards for Evaluating and
Selecting Accounting Auditors, based on which the Audit& Supervisory Board conducts evaluation.
As a result of the evaluation, it was found that theaccounting auditors satisfy none of the conditions
described in the provisions of Article 340, Paragraph 1 ofSENSHU IKEDA HOLDINGS,INC.

the Companies Act. The Company, therefore,
reappointed the accounting auditors, taking into accountthe results of the evaluation on the accounting auditors
by the Audit & Supervisory Board.

Status of Outside Officers

The Company has 4 outside directors.
Outside Director Minoru Furukawa holds 10,600 shares ofcommon stock of the Company and has ordinary banking
transactions with The Senshu Ikeda Bank. He also
concurrently serves as an officer at Hitachi Zosen
Corporation, Unitika Corporation, The Midori Kai Co., Ltd.,
Osaka International Convention Center Corp. and OKK
Corporation. The Senshu Ikeda Bank has ordinary banking
transactions with Hitachi Zosen Corporation, The Midori Kai
Co., Ltd. and OKK Corporation; and has concludes atemporary staff dispatch contract with The Midori Kai Co.,
Ltd.; and the Company has conference hall borrowing
transaction with Osaka International Convention Center
Corp.
As an outside director of the Company, he performs his
duties of supervising the business execution based on his
extensive experience in corporate management as arepresentative director of a listed company. He also
concurrently serves as a non-executive director (non-fulltime) at The Senshu Ikeda Bank.
Outside Director Takao Koyama holds 10,600 shares ofcommon stock of the Company and has ordinary banking
transactions with The Senshu Ikeda Bank. He had served
as an officer at Hitachi, Ltd. and Hitachi Solutions, Ltd. inprevious time. The Senshu Ikeda Bank has ordinarybanking transactions and commissions of systemdevelopment and operation with Hitachi, Ltd. and Hitachi
Solutions, Ltd.; and the Company has a capital relationshipwith Hitachi, Ltd.
As an outside director of the Company, he performs his
duties of supervising the business execution based on his
extensive experience in corporate management as arepresentative director. He also concurrently serves as a
non-executive director (non-full-time) at The Senshu Ikeda
Bank.
Outside Director Tomokazu Yamazawa holds 11,340
shares of common stock of the Company and has ordinarybanking transactions with The Senshu Ikeda Bank. He hadserved as an officer at Hankyu Hanshin Holdings, Inc. He
also concurrently serves as an officer at Hankyu Hanshin
Hotels Co., Ltd, Hanshin Expressway Company Limited andCharm Care Corporation. The Senshu Ikeda Bank hasordinary banking transactions with Hankyu Hanshin
Holdings, Inc., Hankyu Hanshin Hotels Co., Ltd, Hanshin
Expressway Company Limited and Charm Care
Corporation. The Company has a capital relationship with
Hankyu Hanshin Holdings, Inc.
As an outside director of the Company, he performs his
duties of supervising the business execution based on his
extensive experience in corporate management as arepresentative director. He also concurrently serves as a
non-executive director (non-full-time) at The Senshu Ikeda
Bank.
Outside Director Atsuko Ogasawara has ordinarybanking transactions with The Senshu Ikeda Bank. Ms.
Atsuko Ogasawara, Outside Director, held key positions at
a press firm with a wide range of experience andachievements in the business world. Accordingly, theCompany believes that she will be able to fulfill the role of

the Company’s Outside Director which is to supervise
business execution. She concurrently serves as a nonexecutive director (part-time) at The Senshu Ikeda Bank.
The Company has 3 outside audit & supervisory board
members.
Outside Audit & Supervisory Board Member Toshiaki
Sasaki holds 39,560 shares of common stock of theCompany and has ordinary banking transactions with The
Senshu Ikeda Bank. He also concurrently serves as the
President of Senshu Gakuen. The Senshu Ikeda Bank hasordinary banking transactions with Senshu Gakuen.
He performs his duties as an audit & supervisory board
member based on his wealth of experience and broad
insight earned over the years as an audit & supervisoryboard member in financial institutions.
Outside Audit & Supervisory Board Member Seiji
Morinobu has ordinary banking transactions with The
Senshu Ikeda Bank. He also concurrently serves as an
officer at KITAKEI CO., LTD. The Senshu Ikeda Bank hasordinary banking transactions with KITAKEI CO., LTD.
He performs his duties as an outside audit & supervisoryboard member in auditing the legality of the management
execution from an objective and neutral position, based on
his experience as an outside director, wide range ofexperience and insights as an attorney, and sufficiently
high social credibility.
Outside Audit & Supervisory Board Member Kohei
Nakanishi holds 4,200 shares of common stock of theCompany and has ordinary banking transactions with The
Senshu Ikeda Bank. He had served as an officer at Japan
Bank for International Cooperation (“JBIC”) in previous
time. Although The Senshu Ikeda Bank has concluded amemorandum of understanding with JBIC for supporting
Japanese firms with expanding overseas, no considerationarises from transaction under the memorandum.
He performs his duties as an outside audit & supervisoryboard member independently from an objective and neutral
position, based on his wide range of experience andknowledge regarding international finance as well as
experience on corporate management and knowledge, andinsight into corporate governance through served as
director of a bank and outside director of corporations, andsufficiently high social credibility.
The Company has set forth the following standards forthe independence of outside directors and outside audit &supervisory board members (hereinafter “outside officers”)
in order to objectively determine their independence andelects outside officers on the basis of these standards. All 7
outside officers, namely outside directors, Minoru
Furukawa, Takao Koyama and Tomokazu Yamazawa,
Atsuko Ogasawara and outside audit & supervisory board
members, Toshiaki Sasaki, Seiji Morinobu and Kohei
Nakanishi, satisfy the standards for the independence.
They have been designated and notified to the Tokyo Stock
Exchange as independent officers, as they satisfy therequirements of independence stipulated by the relevant
stock exchange and pose no potential conflict of interests
with general shareholders.
<Standard for judging the independence>
At the Senshu Ikeda Group, as a general rule, Outside
Directors/Audit & Supervisory Board Members shall bethose who do not fall under any of the following
requirements, at present or recently.1

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

12

1. A person who deems the Group to be a major2 business
partner, or in the case of a company, an executing
person thereof.
2. A person who the Group deems to be a major business
partner, or in the case of a company, an executing
person thereof.
3. A business consultant, an accounting specialist or alegal specialist who has received a large sum3 of moneyand other properties other than Officers’ remunerationfrom the Group (or a quasi-executing person who has
belonged to the payee’s group).
4. A person who the Company deems to be a major
shareholder4 of the Company, or in the case of acompany, an executing person thereof.
5. A payee of a large sum of donation from the Group, or aquasi-executing person of the payee’s group, in the casewhere the receiver of the monies, etc., is an entity.
6. A former executing person of any of the Group
companies in the past.5
7. A relative6 of a person (excluding those who are notsignificant) mentioned below:
A. A person who is mentioned in the aforesaid items 1
through 6.
B. Directors, Audit & Supervisory Board Members,
Executive Officers and important employees of any of
the Group companies.
Notes:
1. Definition of “recently”: Refers to cases that might beregarded as almost “at present,” for example, including
the case where said person fell under any infringement
requirement item since the content of a proposal for theselection as Outside Director or Outside Audit &Supervisory Board Member was determined.
2. Definition of “major”: Refers to 2% or more of theconsolidated net sales per annum (Consolidated
ordinary income in case of the Company) for the nearest
fiscal year, as a benchmark for judgment.
3. Definition of “a large sum”: Refers to a three-year
average amount of ¥10 million or more per annum for the
past three years.
4. Definition of “major shareholder”: Refers to a shareholder
who held 10% or more of the total voting rights at the endof the nearest fiscal year.
5. Definition of “past”: Refers to “within 10 years up to thepresent.”
6. Definition of “relative”: Refers to “within the second
degree of kinship of a person.”Supervision or Audit by Outside Directors or Outside
Audit & Supervisory Board Members, Interconnection
with Internal Auditing, Audits by Audit & Supervisory
Board Members, and Accounting Auditing, andRelationship with the Internal Control Division

Outside directors receive reports about the status of audits
by audit & supervisory board members, internal audits andaccounting audits, as well as the status of internal control
from the internal control division through Board of Directors.
On the other hand, outside audit & supervisory board
members receive reports from full-time audit & supervisoryboard members about the status of audits by audit &supervisory board members, internal audits andaccounting audits, as well as the status of internal control
from the internal control division. Both outside directors andoutside audit & supervisory board members give
recommendations and advice in return for these reports.

13

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

SENSHU IKEDA HOLDINGS,INC.

Corporate governance structure of the Group[Senshu Ikeda Holdings](As of the end of June, 2020)

General Meeting of
Shareholders
Appointment/Removal

Accounting Auditors
Accounting audit

Appointment/Removal
Joint coordination
Reporton Audit

Report on Audit
AdviceBoard of Directors

Bringing important
issues to meetings/
Reporting on business Appointment/
execution
Supervision

Bringing discussed
issues to meetings/
ReportingManagement Committee

Supervision

Reporton Audit

Personnel Affairs Division[The Senshu Ikeda Bank]

Audit

Joint coordination

Internal Audit Division

Directors/Executive Officers
Internal audit

Instruction/
Direction

Corporate Planning andGeneral Affairs Division

Audit & Supervisory Board

Personnel Committee
Remuneration Committee

Representative Directors
Risk Management Committee
Compliance Committee
ALM Committee

Appointment/Removal

General Risk Management Division[Senshu Ikeda Tokai Tokyo Securities]

General Meeting of
Shareholders

General Meeting of
Shareholders
Audit & Supervisory Board

Audit & Supervisory Board

Board of Directors

Personnel Committee
Remuneration Committee

Board of Directors

Management Committee

Risk Management Committee

Management Committee

Compliance Committee

Compliance Committee

ALM Committee
Efficiency Improvement Committee

Branches

Head Office

Branches

Head Office

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 202014

Basic approach to the internal control system and its
status of development

The Company and the Group companies are developinga structure necessary to ensure the adequacy ofoperation based on the following concepts; create a“most trusted by customers” financial group which
respects personal relationships and promotes honest
and approachable banking.
(1) Structure to ensure that directors and employees of theCompany and the Group companies execute businessin compliance with laws and regulations as well as with
the Articles of Incorporation
The Company and the Group companies focus oncompliance with laws and regulations (hereinafter“compliance”) as one of the most critical managementtask. The Company and the Group also set out the codeof ethics along with the code of conduct to ensure that
directors and employees behave in compliance with laws
and regulations as well as social norms, while setting out
basic rules of compliance under which overall
compliance policies and specific measures are
discussed at the Compliance Committee.
To ensure the above compliance implementation, theCompany and the Group companies appoint directors
who are responsible for compliance. In addition, theGeneral Risk Management Division coordinatescompliance arrangement across the Company and theGroup companies, while conducting education andtraining for directors and employees by developing
compliance program and compliance manual, andarranging compliance seminars.
Furthermore, the Group Compliance Hotline, awhistleblowing system has been set up and managed toallow directors and employees of the Company and theGroup companies to directly provide information about
questionable conduct in light of laws and regulations.
The hotline system is structured to guarantee that the
informants who provide such compliance-related
information are protected from being treated in a
disadvantageous manner.
Basic rules that directors and employees must abide
by are set out for the prevention of insider trading.
Besides, the Company and the Group companies havetaken uncompromising stance against anti-social forces
and organizations that threaten the order and safety of
the community, while making every effort to eliminate
their involvement in any trading activities. The Company
and the Group companies have also taken every
measure to eliminate money laundering in considerationof the possibility that funds transferred via financial
institutions could be used for criminal purposes including
terrorism.
Moreover, the Company and the Group companies
provide effective customer management including
customer protection, with the purpose to reassure ourcustomers of their security and to promote theirconvenience in an effort to implement a thorough‘customer first policy.’(2) Structure for the preservation and management of
information concerning the directors’ businessexecution
The Company and the Group companies have preparedand kept documents such as minutes of important
meetings including the Board of Directors and the15

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

Management Committee, as records of directors’
execution of duties.
The Company and the Group companies have also
prepared and kept documents and attachment
sanctioned by directors as appropriate.
(3) Arrangements including rules to manage the risk ofpotential losses of the Company and the Group
companies
With the purpose of ensuring the soundness ofmanagement and stable corporate earnings, theCompany and the Group companies have set out basic
rules of risk management. The Company and the Group
companies have classified risks into credit risk, market
risk, funding liquidity risk and operational risk, anddefined the department responsible for the managementof each category of risk, while establishing the Risk
Management Committee to monitor the status ofmanagement of each such category.
Meanwhile, the Company and the Group have set out
rules of risk management, with the purpose to minimize
the financial loss along with loss of confidence resulting
from the crisis event, and to ensure business continuity
through prompt restoration of normal operational
functions.
(4) Structure to ensure efficient business execution bydirectors of the Company and the Group companies
The Board of Directors sets out the management
objectives of the Company and the Group companies
with the purpose of enabling the directors andemployees of the Company and the Group companies toefficiently execute their business. The Board of Directors
also formulates the Group Management Plan and sets
forth operational plans on an annual basis to bring saidPlan into shape.
In addition, the Board of Directors establishes theManagement Committee with the purpose of enabling
directors to efficiently execute their business. The
Management Committee discusses beforehand theagenda of the Board of Directors to facilitate thedecision-making process at those meetings, while
discussing the critical issues for resolution in
implementing the basic management policies that havebeen resolved by the Board of Directors on the basis ofsuch policies.
The Management Committee also defines theheadquarters under the command of each director, alongwith the authority and responsibility involved, whiledeveloping and maintaining a structure for efficientbusiness execution by utilizing IT.
(5) Structure to ensure the adequacy of business operation
at the Group, which comprises the Company and theGroup companies
The Company regards the respective Group companies
as one group under the flag of Senshu Ikeda Holdings.
Thus each member company of the Group runs its
operation through developing an adequate internalmanagement structure according to its scale and natureof operation under the adequate guidance of, and incoordination with the Company.
The Company, as a responsible entity for theadministrative management of the entire Group, hasestablished administrative management rules targetingits subsidiaries. The Company has developed a structurein which it receives necessary reports concerning theSENSHU IKEDA HOLDINGS,INC.

business execution of directors and employees and otherrelevant matters from and consults on those issues withthe respective Group companies.
(6) Matters concerning employees who assist audit &supervisory board members in the performance of theirduties, the independence of those employees fromdirectors, and structure to ensure the effectiveness of
the instructions to such employees
In order to support audit & supervisory board members’
business execution, the Company and the Group employ
audit & supervisory board members’ staffs as secretariat
for the Audit & Supervisory Board. Such audit &supervisory board members’ staff shall receive
instructions from the audit & supervisory board members
for their business execution, while their personnel
changes and evaluations shall require an accord of therelevant audit & supervisory board members to ensure
the staff’s independence from directors. Thus theCompany and the Group companies ensure their
independence from directors.
(7) Structure to facilitate reporting from directors andemployees to audit & supervisory board members andother arrangements to ensure that audit & supervisoryboard members are adequately informed, as well as the
structure to ensure that no disadvantageous treatment isconducted because of having reported to audit &supervisory board members
Directors and employees of the Company and the Group
companies shall immediately report to audit &supervisory board members on matters that could havesignificant impact on the Company and the Group
companies, or any other matters as necessary, in
addition to matters legally required to be reported.
In addition, the hotline system is structured toguarantee that the informants who provide the Group
Compliance Hotline with compliance-related information
are protected from being treated in a disadvantageousmanner. Moreover, to complement this arrangement, theCompany and the Group companies have established astructure whereby audit & supervisory board members
are permitted to attend important meetings such as thoseof the Board of Directors, the Management Committee,
the Compliance Committee, the Risk Management
Committee and the ALM Committee.
(8) Other structure to ensure that audit & supervisory board
members conduct effective audits
Audit & supervisory board members hold meetings to
exchange opinions with representative directors, internal
audit division and accounting auditors.
Audit & supervisory board members attend important
meetings such as the Board of Directors, theManagement Committee, the Compliance Committee, theRisk Management Committee and the ALM Committee, inan effort to find out various problems they need toaddress in the execution of their duties.
Furthermore, audit & supervisory board members shallbe permitted to request posteriori for redemption of theexpenses that they deem necessary in executing theirduties if such expenses were previously budgeted bythem and have been disbursed for an emergency or
temporarily.

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 202016

Compliance Structure
The Company and the Group sets “compliance” as oneof the most important management priorities. We are coping with it in order to fulfill our social responsibility andpublic duties, and to earn the trust of our customers andregional communities.
The Company has set up a “Compliance Committee”
to deliberate important matters regarding groupcompliance. We have also formed the General Risk
Management Division under the “Chief Compliance
Officer” to manage matters regarding compliance
unitarily.

The General Risk Management Division ensurescompliance by creating, reviewing, and following up the“Compliance Program,” which is a practical plan forreinforcement of compliance, by creating, updating, anddistributing the “Compliance Manual,” which stipulates
basics regarding compliance, and by conducting compliance education activities through various training
programs.
We assign “Compliance Officers” and “ComplianceManagers” to each division and branch in order to implement and penetration of compliance. In addition, weSenshu Ikeda Holdings

Board of Directors and Management Committee
Bringing issues to meetings/Reporting

Instruction

Compliance Committee(Administrative Office: General Risk Management Division)

Chief Compliance Officer(Director in charge of General Risk Management Division)
General Risk Management Division
Consultation /Reporting

Instruction

Compliance Officers in each Division (General Managers)
Compliance Managers (Deputy General Managers)

Consultation /Reporting

Instruction

The Senshu Ikeda Bank, Senshu Ikeda Tokai Tokyo Securities, Shizen Soken
Subsidiaries and affiliates

17

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

SENSHU IKEDA HOLDINGS,INC.

check the operations from compliance point of view andfacilitate the conduction of training programs to ensurecompliance.
We also set up and operate a hotline including external contact point in order to find compliance problems inearly stages and take corrective actions.
Compliance has become an increasingly important
issue for financial institutions. The Company and theGroup are committed to strict observance of the Banking
Act, Financial Instruments and Exchange Act, and related
laws and regulations. We also work toward the eliminationof anti-social forces, and strive to strengthen an appropriate protection system for our customers.
We intend to enrich and enhance our compliancestructure through improving various regulations andgiving training to our employees continuously so that customers can deal with us “reliably.”

Code of Ethics
The Group sets up Code of Ethics as follows that our directors and employees mustabide by. The directors and employees will regard the observance of the Code of
Ethics as a fundamental part of routine operations and will conduct fair and honest
corporate activities, while complying with laws and rules strictly to implement theGroup’s management philosophy and policies.
1. Winning the trust from our customers
Taking its social responsibility and public duties into consideration, we will intend
to become the most reliable financial group for the customers through conducting
sound and appropriate operations, including information management and proper
disclosure.
2. Implementing “customer first policy”
We will always consider any matters on customer first basis and will contribute to
the development of the regional economy and community through providing
high-quality financial services that are both original and innovative.
3. Strict compliance
We will strictly comply with all laws and rules, and will conduct fair and honest
corporate activities that are consistent with social code.
4. Respecting human rights and the environment
We will respect personal relationship, characters and personalities of the others,
and conduct environment-friendly corporate activities.
5. Eliminating anti-social forces
We will take an uncompromising stance against anti-social forces and organizations, and resolutely eliminate all undue intervention by such forces andorganizations which threaten the order and safety of the community.

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

18

Risk Management Structuren Basic Approach to Risk Management
While business opportunities for financial institutions
multiply as a result of deregulation, sophistication andglobalization of financial operations, and the significant
development in ICT, the risks that financial institutions
face are becoming more complicated and diverse qualitatively.
Moreover, it has been more important for financial
institutions to monitor, assess and manage risks properly,
and to respond to the changes quickly in the environment in order to earn the stable and continuous profits,
while serving various needs of customers. Under suchcircumstances, the Group regards enhancing andstrengthening risk-management structure as a highpriority management task in order to maintain andenhance the soundness of its business execution.
Specifically, the Group determines the structure andvarious rules regarding risk management and the departments in charge of each risk category at the Board of
Director. The group has also set up the risk management
division to oversee the departments regarding risk management. Furthermore, the Risk Management Committee
and the ALM Committee, consisting principally of management personnel have been established, with the
purpose to identify the risk situation within the Group as
well as its subsidiaries, and to discuss the relevant
agenda and countermeasures which shall subsequently
be reported and further discussed at the Board of Directors. Thus the Group ensures effective risk management
structure at management level.
Meanwhile, as action plans for risk management
based on the Group strategies, basic risk management
principles are set out annually and reviewed continuallyin order to deal with the risks newly emerging as a resultof changes in environment for timely and adequate way.
With the purpose to objectively examine the adequacy and effectiveness of the risk management structure,
the internal audit division which independents from theaudited departments conducts an audit. Thus the Group
ensures appropriate administrative processing andsound business operations through finding out andimproving the matters on risk management.

categories of credit risk, credit concentration risk
outside the calculation of capital ratio, interest rate risk
in banking accounts, market risk and operational risk,
and compares them with its management strength(capital ratio).
The Group regards development and reinforcement of risk management structure as its crucial
management task. Furthermore, the Group has developed an integrated risk management structure that therisk management division manages all risks in order tocomprehensively identify and appreciate various risks
associated with the Company’s operations by asuniform as possible measurement, and to earn thestable revenue, realize appropriate capital composition and allot management resources properly.
l Risk capital management system
The Group is running its operation based on the risk
capital management system that controls all risks
within certain proportion of capital base, under the
integrated risk management structure.
Specifically, the Company allocates risk capitalsourced from core capital base to credit risk, market
risk and operational risk, based on the calculated risk
amount in each category. The Company has also
monitored risk amount continuously to ensure that it is
kept within the tolerable limit from management pointof view. Thus the Company ensures smooth operations
and management soundness across the Group.

Risk buffer: Provisions against unpredictablerisks and risks associated withaffiliated companies

Risk buffer
Credit Risk
Core
capital baseRisk
capitalto beallotted

19

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

Market Risk
Market Risk
Operational
Risk

n Integrated Risk Managementl Integrated risk management
Integrated risk management refers to the process toadequately manage the risks that financial institutions
face. The Company evaluates the risks divided into

Credit Risk

Financialresource forallocation

Allocatablerisk capital

Risk capital
to beallocated

Operational
Risk
Risk amountSENSHU IKEDA HOLDINGS,INC.

l Calculation method for capital ratio regulation
In respect to risk asset calculation for the purpose of
the capital ratio regulation, the Group applies theFoundation Internal Ratings-Based Approach for credit
risk and the gross profit allocation method for operational risk.

n Credit Risk Management
Credit risk, as identified by the Group, is the risk of
suffering losses as a result of a decline or loss of thevalue of assets due to reasons such as the deteriorating
financial conditions of or default by the obligor.
The Group has set up “Credit Policy” in the banking
subsidiary that clarifies its policy for extending credit,
based on its management policy in order to maintain andenhance the soundness of its business execution.
Under this policy, the responsible division for the
management of credit risk, the Risk Management Division at banking subsidiary, in accordance with the
management methods stipulated in the Credit Management Regulations, administers finely-tuned responses torisks for the purpose of building up an optimum portfolio.
Specifically, the division analyzes and manages thecredit portfolio from various aspects including credit
concentration risk, type of business, borrower classification and credit ratings.
As for the credit analysis and management of eachloan at the banking subsidiary, the Group makes efforts
to ensure the independence of the investigation divisionfrom the business promotion division. The Board of
Directors and other appropriate body review each loan
for large obligor as well as the credit policy. Thus theGroup has focused on the development and improvement of its credit analysis system. Meanwhile, Loan
Division is managing housing loans receivable.
The banking subsidiary has also established theInternal Audit Division, to manage auditing of the selfassessment of assets, in order to maintain and enhance
the soundness of its asset base.

n Market Risk Management
Market risk, as identified by the Group, points to “marketrisk” and “market liquidity risk.” Market risk is the risk of
suffering losses through changes in the prices of assets
and liabilities held by the Group due to the fluctuations ofmarket risk factors, such as interest rates, prices of
securities, foreign exchange rates and so on. Market

liquidity risk is the risk of suffering losses arising from theinability to execute sufficient transactions under appropriate conditions, due to market confusion or an
insufficient trading base. The Group has established the
Risk Management Committee and the ALM Committee,
consisting principally of management personnel, anddiscussed appropriate and timely measures to address
the risks in order to earn the stable and continuous profit
through managing its assets and liabilities in a comprehensive way.

n Funding Liquidity Risk Management
Funding liquidity risk, as identified by the Group, is therisk of suffering funding difficulties from being unable toraise necessary funds due to market conditions or deterioration in the Group’s financial condition, as well as therisk of suffering losses from being forced to raise funds
at higher interest rates than usual.
The Group takes control of its funding situation
through careful monitoring of the fund management andfundraising. The Group also ensures liquidation of its
assets and diversifies the sources of fundraising. Thus
the Group has taken every possible measure to manage
funding liquidity risk.

n Operational Risk Management
Operational risk, as identified by the Group, is the risk of
suffering losses from the inappropriate business activityof the Group - including its employees-, systems, orexternal premises.
The Group has set a rule for operational risk management and classified the risks into the six categories asfollows; (1) administrative risk, (2) information asset(system) risk, (3) tangible fixed asset risk, (4) personnel
risk, (5) legal risk, and (6) reputation risk.
Furthermore, the Group identifies and evaluates all
risks associated with new products and services before
they are actually developed and provided, for the purpose of adequate risk management. Besides, the Groupmanages customer information sufficiently and ensuresmanagement soundness when outsources certain business operation.

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

20

l Administrative risk management
Administrative risk, as identified by the Group, is therisk of suffering losses from administration, fraud,
accidents and other risks that the Group’s operations
will not be carried out as intended.
The Group prescribes detailed rules on administrative procedures and strives to prevent accidents
through doing the administration promptly and accurately, so that the customer can enter into transactions
with the Group without any concern. Meanwhile, theGroup makes every effort to eliminate administrativerisk by measures such as review of the administrative
procedure from identification of potential risks throughthe analysis of administrative processes.
l Information asset (system) risk management
Information asset (system) risk, as identified by theGroup, is the risk of suffering losses due to loss, alteration, unauthorized use, leakage of information, as wellas to system defects caused by natural disasters or
breakdowns.
In consideration of the fact that its business operations are supported by various computer systems, theGroup ensures the reliability and security of systems
and has established back-up systems and structuresin case of emergency.
The Group is also working to establish appropriate
operation and management systems to prevent theleakage of information and unauthorized access to its
systems through encoding of data and strengtheningof access authority management.
l Tangible fixed asset risk
Tangible fixed asset risk, as identified by the Group, isthe risk of suffering losses associated with damage ofbuilding and equipment or deterioration of working
environment as a result of disasters or poor asset management.
The Group is preparing for disaster through conducting quake resistance tests and implementing
countermeasures against power failures in order toensure business continuity in the event of emergencies.
l Personnel risk
Personnel risk, as identified by the Group, is the risk of
suffering losses associated with the delay of failing insuccession of expertise within the Group, as a result ofdrain or loss of key staff, or degradation of morale.
21

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

The Group is striving to develop working environment to enable each employee to fully exert ability,
while helping him or her to improve their skills.
l Legal risk management
Legal risk, as identified by the Group, is the risk of
suffering losses from violations of laws and regulations,as well as inappropriate responses to changes invarious systems.
The Group strives to prevent the occurrence oflegal risk and to reduce the risk itself. To this end, theGroup has established the General Risk Management
Division to collect information concerning legal matters, and to manage legal risk identified from suchinformation, as well as appropriately responds to thelegal risk.
l Reputation risk management
Reputation risk, as identified by the Group, is the riskof suffering losses arising from deterioration of theGroup’s reputation due to circulation of unfounded
rumors or due to inadequate responses of the Group
concerning the facts.
The Group works to avoid reputation risk by disclosing information proactively thorough increases thetransparency of its management, taking into consideration the crucial influence on the management of theGroup.

n Crisis Management
The Group has established the “Crisis Management
Rules,” which set out the basic policies in responding toemergencies including large-scale disasters and system
failures. In the event of large-scale crisis, the Group sets
up a “Crisis Management Headquarters” take charge ofcompany-wide response. Specific action programs are
set out in a “Contingency Plan,” with the purpose toensure safety of customers and employees, as well as
set up business continuity structure of the financial
system.

SENSHU IKEDA HOLDINGS,INC.

The risk management structure of the Group(As of the end of June, 2020)

Senshu Ikeda Holdings
Board of Directors

Audit & Supervisory Board
Crisis Management Headquarters

Management Committee

Supervising
division

Type of risks

Responsible
divisions

ALM Committee

Risk Management Committee

General Risk Management Division

Credit Risk Market Risk

Funding
Liquidity
Risk

Operational Risk
Administrative
Risk

Information
Asset(system) Risk

General Risk Management Division

Divisions in chargeof operating
and managing

Tangible Fixed
Asset Risk

Personnel
Risk

Legal Risk

Corporate Planning andGeneral Affairs Division

Personnel Division

General Risk
Corporate Planning andManagement Division General Affairs Division

Reputation
Risk

Internal Audit Division

Committee

Banking subsidiary and affiliates

Direction of basic policies, etc.

Administration and management

Reporting on status of risk management

Consultation on risk management

The Senshu Ikeda Bank
Audit & Supervisory Board

Board of Directors

Crisis Management Headquarters
Management Committee

Supervising
division

Type of risks

Responsible
divisions
Divisions in chargeof operating
and managing

ALM Committee

Risk Management Committee

Risk Management Division

Credit Risk Market Risk

Funding
Liquidity
Risk

Risk Management Division

Operational Risk
Information
Asset(system) Risk

Tangible Fixed
Asset Risk

Personnel
Risk

Legal Risk

Reputation
Risk

Operations Management
Division

Corporate Planning andGeneral Affairs Division

Personnel Affairs
Division

Risk
Management
Division

Corporate Planning andGeneral Affairs Division

Administrative
Risk

Internal Audit Division

Committee

Each division of Headquarters, each branch, subsidiaries and affiliates

Senshu Ikeda Tokai Tokyo Securities

Shizen Soken

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 202022

Approach to Facilitation of Financing
The Senshu Ikeda Bank (hereinafter the “Bank”) is focused on providing adequate and sufficient financial
intermediary function to customers in need of businessloans or housing loans, as one of the crucial management priorities. The Bank has formulated basic policy forfacilitation of financing (hereinafter the “Policy”) in orderto promote facilitation of financing to those in needparticularly under the current tight economic environment.
The Bank intends to communicate with our customers
and promote facilitation of financing positively.

l Organizational structure(1) With the purpose to develop a management structurenecessary to supply facilitation of financing (hereinafter “Facilitation of Financing Management”) under the
Policy, the Bank appoints the Facilitation of Financing
Manager to check whether Facilitation of Financing
Management is effectively working.
(2) The Bank appoints the director in charge of the Loan
Division to the Facilitation of Financing Manager. The
Manager will engage in the development and reinforcement of the structure for Facilitation of Financing
Management through checking the progress inrespect of Facilitation of Financing Management.
(3) The Facilitation of Financing Manager coordinates theoverall business in respect of Facilitation of Financing
Management such as instructions to the division
responsible for Facilitation of Financing Management,

and drawing up of the rules governing facilitation offinancing, with the purpose to ensure adequacy,
sufficiency and effectiveness of Facilitation of Financing Management.
(4) The Loan Division is responsible for Facilitation of
Financing Management. The Loan Division engages
in the adequate operation, examination and improvement of Facilitation of Financing Management under
the command of the Facilitation of Financing Manager
through gathering information necessary for Facilitation of Financing Management.

System for accepting consultation of facilitation of financing

The Senshu Ikeda Bank
[Headquarters][Branches]
Facilitation of Financing Manager
Consultation,
application andcomplaints

Reporting andconsultation

Coordination[Consultation Service over holidays]

Customers

Support andinstruction

Toll-free Consultation Service

Divisions associated with Facilitation of Financing

Instructions

Smooth financing
Appropriate explanations to customers
Dealing with complaints and consultations appropriately
Support in improving management
Support in restructuring
Personnel training
Analysis and improvement of management structureManagement
Committee[Consultation Service]Consultation, application and complaints

Toll-free Consultation Service
Repayment Consultation Approach

Sincere and adequate respondence

Coordination
Businesstransactions, etc.

23

Board
of
Directors

Divisions managing Facilitation of Financing

Over-the-counter Consultation Service

Over-the-counter Consultation Service

Reporting

Development and reinforcement of the supervising structure

Facilitation of Financing Officer

Sincere andadequate
respondence

Facilitation of Financing Manager

Credit Guarantee Corporation, Enterprise
Turnaround Initiative Corporation of Japan,
Japan Housing Finance Agency and other financial institutions

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

Contact for opinions and requests(complaints) concerning facilitationof financing <Toll-free>

Reporting

Audit &
Supervisory
Board

Disclosure

ReportingPublicAuthorities

SENSHU IKEDA HOLDINGS,INC.

l Basic Policies(1) On receiving consultations or applications for newloans, or changes in loan terms from customers, theBank intends to make sincere effort to conduct adequate and prompt credit screening throughconsidering customers’ recent financial results,
assets and income as well as future potential andprospect. The Bank also deals with the applications
for new loans, after changes in loan terms in a similar
way as referred to above.
(2) The Bank intends to make efforts to supply funds(including new credit granting) smoothly as well as tomake changes in loan terms by monitoring the conditions of the customers carefully and fully coordinatingwith other related financial institutions including otherbusiness categories.
(3) Additionally, keeping in mind the purpose of the provisions of Article 64 of the Act on Regional Economy
Vitalization Corporation of Japan (Law No. 63, 2009)(*), the Bank intends to appropriately and proactively
engage in the vitalization of the regional economy
and the facilitation of regional financing.
(Note) The provision sets forth, “The Corporation andfinancial institutions, when providing support
to business activities that contribute to thebusiness rehabilitation of business operatorsand the vitalization of the regional economy,
shall strive to mutually cooperate with eachother in order to vitalize the regional economy
and facilitate regional financing through theenhancement of overall economic capabilitiesof the region.”(4) Consequently, the Bank intends to provide maximum

support to the business improvement efforts of its
customers not only through its role as a provider offinancing but also through various customer services
including business consultation and guidance.
(5) Furthermore, keeping in mind the purpose of the“Guidelines on Proprietor Guarantees” (Study Groupon Guidelines on Proprietor Guarantees, December
5, 2013; hereinafter “Guidelines on Proprietor
Guarantees”), the Bank intends to further promoteloans that are not dependent on proprietor
guarantees, while at the same time making efforts todeal with its customers based on the concept ofreasonable guarantee contracts as set forth in the“Guidelines on Proprietor Guarantees.”(6) On receiving consultations or applications for newloans, or changes in loan terms from customers, theBank intends to provide sufficient explanation in orderto gain customers’ understanding and satisfaction, on
the basis of past trading records, customers’
knowledge, experience and assets situation. If the
Bank has to decline customers’ application, we will
explain the reason background of the decision as
concretely and courteously as possible.
(7) The Bank intends to improve capability of directors
and employees about facilitation of financing bygiving internal training, to enable them to makeappropriate decisions based on good understandingof customers' situations.
(8) The Bank intends to respond to any comments,
requests, consultations and complaints from
customers in respect of facilitation of financing
promptly and sincerely.

l Policies for handling of application for loans from small and medium enterprises and sole proprietors(1) On receiving applications for changes in businessterms such as loan terms from small and medium
enterprises and sole proprietors, the Bank intends toaccommodate such application and offer adequatechanges in terms adequately as far as possible,
taking into consideration of the specialty and thecircumstance of customers’ businesses.
(2) The Bank intends to provide small and medium
enterprises and sole proprietors with management
consultation, guidance and other adequate assistance in support of their effort for management
improvement, taking into consideration the operational circumstance of customers.
(3) In the cases that customers borrow from other financial institutions as well as the Bank, we will, uponcustomers’ approval, strive to make arrangements incoordination with the other financial institutions inorder to help to reduce the burden of repayment.
(4) On receiving request for the corporate rehabilitation
procedure through Alternative Dispute Resolution(ADR) for corporate rehabilitation (*) or Enterprise
Turnaround Initiative Corporation of Japan, the Bank
makes utmost effort to respond adequately to such
request as far as possible, in full consideration of theprospect of improvement or rehabilitation of thebusiness.
(Note) This refers to certified dispute resolution procedure set out in Article 2, Paragraph 25 of the
Law on Special Measures for Industrial
Revitalization, in which a private third party
organization formulates a rehabilitation plan,
as coordinator of the interests of creditors.

l Policies for handling of application for housing loan
(1) On receiving applications for new loans or changes inhousing loan terms from housing loan customers, theBank intends to accommodate such application andoffer adequate new loans or changes in terms adequately as far as possible, taking into considerationof circumstances including customers’ assets andincome and transactions with other financial institu-

tions.
(2) In the cases that customers have transaction withother financial institutions as well as the Bank or withJapan Housing Finance Agency, we will, upon customers’ approval, strive to make arrangements incoordination with the other financial institutions inorder to help to reduce the burden of repayment.
SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 202024

Corporate Information
Corporate Data (As of the end of March 2020)
Senshu Ikeda Holdings, Inc.
Establishment: October 1, 2009
Location:18-14 Chayamachi, Kita-ku, Osaka-City, Osaka 530-0013, Japan
Phone:
81-(0)6-4802-0181
URL:
https://www.senshuikeda-hd.co.jp
Share Capital:¥102.9 billion
Business Activities: Management and other related operations of banks and affiliates
whose shares can be held in accordance with the Banking Act
and other related operations, and businesses which bank holding
company can operate in accordance with the Banking Act.
Number of Employees: 105
Stock Listing:Tokyo Stock Exchange

The Senshu Ikeda Bank, Ltd.
Establishment: September 1, 1951
18-14 Chayamachi, Kita-ku, Osaka-City, Osaka 530-0013, Japan
Location:
Phone:
81-(0)6-6375-1005
URL:
https://www.sihd-bk.jp
Share Capital:¥61.3 billion
Deposits:¥5.0076 trillion
Loans:¥3.9835 trillion
Number of Branches: 139
Number of Employees: 2,346
Credit Ratings: A-(Japan Credit Rating Agency, Ltd.)International Network
Suzhou Representative Office:

Ho Chi Minh City Representative Office:399 East Baodai Road,
Wuzhong District, Suzhou,
Jiangsu, China

7th Floor, Sun Wah Tower,
115 Nguyen Hue Boulevard,
District 1, Ho Chi Minh City,
VietnamPhone:
84-(0)28-3821-3295
Facsimile :84-(0)28-3821-3298

Phone:
Facsimile :86-(0)512-6585-1791
86-(0)512-6585-2312

Senshu Ikeda Tokai Tokyo Securities Co.,Ltd.
Establishment: January 30, 2013
Location:18-14 Chayamachi, Kita-ku, Osaka-City, Osaka 530-0013, Japan
Phone:
81-(0)6-6485-0031
URL:
https://www.sittsec.co.jp
Share Capital:¥1.25 billion
Assets Under Management: ¥101.2 billion
Number of Branches: 5
Number of Employees: 117

25

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

SENSHU IKEDA HOLDINGS,INC.

Major Shareholders (As of March 31, 2020)
1. Common stock
Name

Number of Shares Owned (Thousands)

Japan Trustee Services Bank, Ltd. (Trust Account)

42,74415.22

12,9334.60*112,031

4.28

Japan Trustee Services Bank, Ltd.(Trust Account 9G)
The Master Trust Bank of Japan, Ltd. (Trust Account)

Proportion of Total Shares (%)*1*1

The Senshu Ikeda Bank Employees’ Shareholders Association

9,591

3.41

MUFG Bank, Ltd.
DFA INTL SMALL CAP VALUE PORTOFOLIO(Standing proxy: Citibank, N.A., Tokyo Branch)

5,934

2.11

4,911

1.74

Japan Trustee Services Bank, Ltd.(Trust Account 5G)
JP MORGAN CHASE BANK 385151(Standing proxy: Settlement & Clearing Service Division, Mizuho Bank, Ltd.)

4,595

1.63

4,419

1.57

ITAMI SANGYO CO., LTD.
STATE STREET BANK WEST CLIENT - TREATY 505234(Standing proxy: Settlement & Clearing Service Division, Mizuho Bank, Ltd.)

3,692

1.31

3,514

1.25

*1

*1: These shares do not disclose the names of beneficiaries.

2. First series of seventh-class preferred stock
Name

Number of Shares Owned (Thousands)

Proportion of Total Shares (%)

OC FINANCE CORPORATION

5,000

20.00

Daikin Industries, Ltd.

5,000

20.00

Aozora Bank, Ltd.

3,000

12.00

ITAMI SANGYO CO., LTD.

2,000

8.00

NICHIA STEEL WORKS, LTD.

2,000

8.00

Non-Destructive Inspection Company Limited.

2,000

8.00

NEC Capital Solutions Limited

1,000

4.00

Mizuho Leasing Company, Limited

1,000

4.00

SHIMA SEIKI MFG., LTD.

1,000

4.00

Hankyu Hanshin Holdings, Inc.

1,000

4.00

ROHTO Pharmaceutical Co., Ltd.

1,000

4.00

Shionogi & Co., Ltd.

500

2.00

Nippon Paper Core Industrial Co., Ltd.

500

2.00

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 202026

Business Description of the Groupn Organizational Chart of the Group (As of the end of June, 2020)
The Senshu Ikeda Bank, Ltd.
Senshu Ikeda Tokai Tokyo ●Securities Co.,Ltd.
Shizen Soken Co.,Ltd. ●Senshu Ikeda Holdings, Inc.

Head office and branches: 136
Sub-branches: 3

Banking services

Representative offices: 3● Senshu Ikeda Corporate Partners Co., Ltd.
● Senshu Ikeda Lease Co., Ltd.

Leasing services● Senshu Ikeda Auto Lease Co., Ltd.
● Senshu Ikeda Guarantee Co., Ltd.

Credit guarantee services● Kinki Credit Guarantee Company Limited● Senshu Ikeda JCB Co., Ltd.

Credit card services● Senshu Ikeda DC Co., Ltd.
● Senshu Ikeda VC Co., Ltd.
● Senshu Ikeda Capital Co., Ltd.
● Senshu Ikeda Business Service Company Limited● Senshu Ikeda System Co., Ltd.

Other services● Senshu Ikeda Investment Management Co., Ltd.
Station Network Kansai Co., Ltd.
● Investment enterprise partnerships: 8

Securities services

Head office and branches: 6

Other services

Head office(Note:● indicates consolidated subsidiaries and○ indicates equity-method affiliates)

Senshu Ikeda Corporate Partners Co., Ltd. resolved to go into liquidation on July 3, 2020.

n Subsidiaries and Affiliates (As of the end of June, 2020)

Affiliates

Subsidiaries

Name

27

Address

Major Business

Date ofestablishment

Share Capital Investment ratio (%)(millions of
Subsidiaries
Japanese yen) The Company and affiliates

The Senshu Ikeda Bank, Ltd.

18-14, Chayamachi, Kita-ku, Osaka-city Banking services

September 1, 1951

61,385100.00–Senshu Ikeda Tokai Tokyo
Securities Co.,Ltd.

18-14, Chayamachi, Kita-ku, Osaka-city Securities services

January 30, 2013

1,250

60.00

–

Senshu Ikeda Corporate Partners
Co., Ltd.

18-14, Chayamachi, Kita-ku, Osaka-city Banking services(Business rehabilitation services)

January 4, 2013100–

100.00Senshu Ikeda Lease Co., Ltd.

4-5-36, Miyahara, Yodogawa-ku, Osaka-city Leasing services

April 1, 198650–

100.00Senshu Ikeda Auto Lease Co.,Ltd.

4-5-36, Miyahara, Yodogawa-ku, Osaka-city Leasing services

July 10, 1996

80

–

95.00

Senshu Ikeda Guarantee Co., Ltd.

2-1-11, Jonan, Ikeda-city

Credit guarantee services

July 20, 1973180–

100.00Kinki Credit Guarantee Company
Limited

2-1-1, Nishiki, Kaizuka-city

Credit guarantee services

April 1, 1975100–

100.00Senshu Ikeda JCB Co., Ltd.

3-2-1, Toyosaki, Kita-ku, Osaka-city

Credit card services

February 1, 1983

60–

100.00Senshu Ikeda DC Co., Ltd.

3-2-1, Toyosaki, Kita-ku, Osaka-city

Credit card services

September 5, 199030–

100.00Senshu Ikeda VC Co., Ltd.

3-2-1, Toyosaki, Kita-ku, Osaka-city

Credit card services

November 2, 199040–

100.00Senshu Ikeda Capital Co., Ltd.

18-14, Chayamachi, Kita-ku, Osaka-city Venture capital services

March 6, 198990–

100.00Senshu Ikeda Business Service
Company Limited

18-14, Chayamachi, Kita-ku, Osaka-city Back-office administration

April 1, 198330–

100.00Senshu Ikeda System Co., Ltd.

18-14, Chayamachi, Kita-ku, Osaka-city Computer software development
and sale services

June 10, 1985

50

–

98.00

Senshu Ikeda Investment Management Co., Ltd.

3-1-22, Toyosaki, Kita-ku, Osaka-city

Investment advisory and discretionary investment services

April 1, 1987

120–

100.00

Shizen Soken Co., Ltd.

2-1-11, Jonan, Ikeda-city

Information offering services

November 1, 1996

80

17.50

–

Station Network Kansai Co., Ltd.

1-4-8, Shibata, Kita-ku, Osaka-city

Planning and operation of ATM at station June 29, 2000

100

–

40.00

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

SENSHU IKEDA HOLDINGS,INC.

Organization and Board of Directors
Senshu Ikeda Holdingsn Organization (As of the end of June, 2020)

Management Committee

ALM Committee

Personnel Affairs Division

Compliance Committee

Risk Management Committee

Remuneration Committee

Personnel Committee

Audit & Supervisory Board Members Office

Audit & Supervisory Board Members Audit & Supervisory Board

Board of Directors

General Meeting of Shareholders

Corporate Planning and General Affairs Division

General Risk Management DivisionInternal Audit Divisionn Board of Directors (As of June 25, 2020)
Representative Director
and Chairman
Representative Director,
President and CEO

Takayuki Ota
Atsushi Ukawa

Director
Director
Director
Director
Director

Hiroo Maeno

Director(Outside)

Minoru Furukawa

Audit & Supervisory
Board Member(Full-time)

Satoshi Kitagawa

Audit & Supervisory
Board Member(Outside)
Audit & Supervisory
Board Member(Outside)
Audit & Supervisory
Board Member(Outside)

Toshiaki Sasaki

Yasuki Hosomi

Director(Outside)

Takao Koyama

Shinji Inoue

Director(Outside)

Tomokazu Yamazawa

Toshiyuki Wada

Director(Outside)

Atsuko Ogasawara

Hiromasa Hirai

Audit & Supervisory
Board Member(Full-time)

Susumu Kawakami

Osamu Tsukagoshi

Executive
Officer

Takayoshi Fujiwara

Seiji Morinobu
Kouhei Nakanishi

n Executive Officers (As of June 25, 2020)
Executive
Officer

Tsutomu Irie

Executive
Officer

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

28

The Senshu Ikeda Bankn Organization (As of the end of June, 2020)
Personnel Committee

Remuneration Committee

Corporate Planning and General Affairs Division
Personnel Affairs Division
Risk Management Division
Compliance Management Office
Operations Management Division
Operating Center

International Division

Management Committee

Business Management Unit

Efficiency Improvement Committee

CS Headquarters

Business Management Division
Securities and Insurance Business Promotion Office
Personal Loan Promotion OfficeBusiness Strategy Division
Customer Center
Relationship Promotion Division

Relationship Unit

ALM Committee

Branches (including sub-branches): 139

Compliance Committee

Risk Management Committee

Audit & Supervisory Board Members Audit & Supervisory Board

Audit & Supervisory Board Members Office

Board of Directors

General Meeting of Shareholders

Risk Products Operations Office

Overseas Representative OfficeFinancial Advisory Division
M&A Advisory OfficePrivate Banking OfficeFinancial Market DivisionMarket Operations Office
Loan Division
Business Rehabilitation Supporting OfficeInternal Audit Divisionn Board of Directors (As of June 25, 2020)
Representative Director
and Chairman
Representative Director,
President and CEO

Takayuki Ota

Director & Senior Managing
Executive Officer

Atsushi Ukawa

Director & Senior Managing
Executive Officer

Hiroo Maeno

Non-executive Director(Non-full-time)

Minoru Furukawa

Audit & Supervisory
Board Member (Full-time)

Osamu Horiuchi
Ken-ichi Yoshimoto
Kenji Fukuda

Yasuki Hosomi

Non-executive Director(Non-full-time)

Takao Koyama

Audit & Supervisory
Board Member (Outside)

Director & Senior Managing
Executive Officer

Shinji Inoue

Non-executive Director(Non-full-time)

Tomokazu Yamazawa

Audit & Supervisory
Board Member (Outside)

Director & Senior Managing
Executive Officer

Toshiyuki Wada

Non-executive Director(Non-full-time)

Atsuko Ogasawara

Director & Managing
Executive Officer

Hiromasa Hirai

Audit & Supervisory
Board Member (Full-time)Masahiro Saiton Executive Officers (As of June 25, 2020)
Senior Managing
Executive Officer

29

Koji Miyata

Managing
Executive Officer

Akihito Okumura

Managing
Executive Officer

Tsutomu Irie

Managing
Executive Officer

Hirohito Sakaguchi

Executive
Officer
Executive
Officer
Executive
Officer

Osamu Tsukagoshi

Executive
Officer

Yoshimasa Nishikawa

Executive
Officer

Keisuke Misaki

Executive
Officer

Akira Sasaki

Hideya Arimoto

Executive
Officer

Tomoyuki Shinohara
Hiroshi Sudo
Yoshi Yamamoto

Takayoshi Fujiwara

Executive
OfficerAtsushi Otsuka

Executive
Officer

Executive
Officer

Kouichi Nakanishi

Executive
Officer

Hiromu Koujiya

Executive
Officer

Executive
Officer

Kyoko Matsushita

Executive
Officer

Shin-ichi Kojima

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 2020

SENSHU IKEDA HOLDINGS,INC.

Deputy General Manager, Business Headquarters

General Manager, Business Headquarters
General Manager, Management Headquarters

Representative Director and Vice President

Representative Director and President
Compliance Committee

Audit & Supervisory Board Members Audit & Supervisory Board

Management Committee

Board of Directors

General Meeting of Shareholders

Senshu Ikeda Tokai Tokyo Securitiesn Organization (As of the end of June, 2020)
Branches

Business Management Division
Collaboration Promotion Office
Product Management Division

Planning and General Affairs Division

Business Compliance DivisionInternal Audit Divisionn Board of Directors (As of June 25, 2020)
Representative
Director andPresident

Motoshi Inoue

Audit & Supervisory
Board Member(Full-time)

Mamoru Kudo

Representative
Director andVice President
Senior Managing
Director

Toshifumi Takai

Audit & Supervisory
Board Member(Non-full-time)
Audit & Supervisory
Board Member(Non-full-time)

Sakae Fujishiro

Muneharu Kurita

Jun Matsumura

n Executive Officers (As of June 25, 2020)
Executive Officer

Toshiyuki Inoue

Executive Officer

Shigeki Kawamura

Executive Officer

Masaomi Umezawa

SENSHU IKEDA HOLDINGS,INC. ANNUAL REPORT 202030

Consolidated Financial Information of Senshu Ikeda Holdings
Consolidated Balance Sheets
Senshu Ikeda Holdings, Inc. and Consolidated Subsidiaries
As of 31st March, 2020 and 2019

Thousands of U.S.
dollars (Note 1)
2020

Millions of yen
2020
2019

AssetsCash and due from banks (Notes 26 and 32)
Call loans and bills bought (Note 32)
Monetary claims bought (Note 32)
Trading account securities (Notes 4 and 32)
Money held in trust (Notes 6 and 32)
Securities (Notes 5, 7, 12, 19, 32 and 33)
Loans and bills discounted (Notes 8, 31, 32 and 33)
Foreign exchange assets (Notes 9 and 32)
Other assets (Notes 10 and 12)
Tangible fixed assets (Note 11)
Intangible fixed assets
Net defined benefit assets (Note 17)
Deferred tax assets (Note 28)
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Total assets¥¥

807,879
6,651
99
50
19,988548,789
3,963,504
5,468
77,88938,5395,175
12,587
9,104
8,210(11,385)
5,492,555¥

743,563
7,127
100
112
27,003
612,741
3,913,086
5,514
79,93940,093
5,152
13,512
8,403
8,492(13,965)
5,450,878$

4,987,885–
209,104556
51,320
1,201
139

¥

4,945,548
87,321
123,077
408
45,9601,225
146$ 45,831,893–
1,921,381
5,108
471,561
11,035
1,277

4

8

36

519
183
–
873
6
176
8,210
5,260,182

611
254
371
799
4
184
8,492
5,214,416

4,768
1,681
–
8,021
55
1,617
75,43848,333,933

102,999
42,10578,839(94)
223,850

102,999
42,10378,804(831)
223,074

946,421386,887
724,423(863)
2,056,877

5,752
(170)
638
6,220
79
2,223
232,373
5,492,555

9,285
(136)
2,197
11,346
71
1,969
236,4625,450,878

52,853(1,562)
5,862
57,153725
20,4262,135,192$ 50,469,126¥

7,423,311
61,113909
459
183,6625,042,626
36,419,222
50,243
715,694354,12147,551
115,657
83,65375,438(104,612)$ 50,469,126

Liabilities and net assets
Liabilities
Deposits (Notes 12, 13 and 32)
Payables under securities lending transactions (Notes 12 and 32)
Borrowed money (Notes 12, 14, 32 and 33)
Foreign exchange liabilities (Notes 15 and 32)
Other liabilities (Notes 12 and 16)
Provision for employees’ bonuses
Net defined benefit liability (Note 17)
Accrued retirement benefits for directors and audit & supervisoryboard members
Reserve for reimbursement of deposits
Reserve for point services
Reserve for losses on guarantees
Reserve for contingent losses
Reserve under special laws
Deferred tax liabilities (Note 29)
Acceptances and guarantees (Note 20)
Total liabilities
Net assets
Shareholders’ equity (Note 20):
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income:Net unrealized gain (loss) on available-for-sale securities (Note 7)
Net unrealized gain (loss) on deferred hedges (Note 33)
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Stock subscription rights (Note 20)
Non-controlling interests
Total net assets
Total liabilities and net assets
See accompanying notes to consolidated financial statements

31

¥

¥

¥

Consolidated Statements of Operations
Senshu Ikeda Holdings, Inc. and Consolidated Subsidiaries
For the years ended 31st March, 2020 and 2019

Millions of yen
2020
2019

Thousands of U.S.
dollars (Note 1)
2020

IncomeInterest income:Interest on loans and bills discounted (Note 31)
Interest and dividends on securities
Other interest income
Fees and commissions
Other operating income (Note 21)
Reversal of provision for possible loan losses
Recoveries of written-off claims
Gain on sales or disposal of fixed assets
Other income (Note 22)
Total income¥

39,291
5,060
633
21,731
6,290
–
1,169
363
14,044
88,584¥40,381
7,758
533
21,087
4,933
289
1,292
10
21,026
97,313$361,030
46,494
5,816
199,678
57,796–
10,741
3,335
129,045
813,966

Expenses
Interest expenses:
Interest on deposits
Interest on borrowings and rediscounts
Other interest expenses
Fees and commissions
Other operating expenses (Note 23)
General and administrative expenses
Loss on sales or disposal of fixed assets
Loss on impairment of fixed assets (Note 24)
Other expenses (Note 25)
Total expenses
Income before income taxes

1,449
255
950
7,450
8,835
47,45329
99
17,01783,541
5,042

1,752
383
2,978
6,783
11,752
48,657
118
2,101
15,29989,826
7,487

13,3142,343
8,729
68,455
81,181
436,028
266
909
156,363
767,628
46,329

Income taxes (Note 28)
Current
Deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of the parent

607
527
1,134
3,908
(35)
3,943

1,313
(19)
1,294
6,192
52
6,139

5,577
4,842
10,41935,909(321)
36,230¥¥$See accompanying notes to consolidated financial statements

Consolidated Statements of Comprehensive Income
Senshu Ikeda Holdings, Inc. and Consolidated Subsidiaries
For the years ended 31st March, 2020 and 2019

ProfitOther comprehensive income (Note 29)
Net unrealized gain (loss) on available-for-sale securities
Net unrealized gain (loss) on deferred hedges
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Total comprehensive income attributable to:
Owners of the parent
Non-controlling interests¥¥

Millions of yen
2020
2019
3,908
¥
6,192

(3,531)(34)(1,558)(5,124)(1,216)(1,181)
(34)

¥

2,303
(20)
841
3,123
9,316
9,263
52

Thousands of U.S.
dollars (Note 1)
2020$
35,909$(32,445)(312)(14,315)(47,082)(11,173)(10,851)(312)

32

Consolidated Statements of Changes in Net Assets
Senshu Ikeda Holdings, Inc. and Consolidated Subsidiaries
Year Ended 31st March, 2020

BALANCE, 1st April, 2018

Capitalstock

CapitalsurplusRetainedearnings

102,999

57,381

78,153

Change in subsidiaries’ equity
Cash dividends
Profit attributable to ownersof the parent
Acquisition of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Net changes in items otherthan shareholders’ equity
Total changes during the period
BALANCE, 31st March, 2019
Purchase of shares of consolidated subsidiaries
Cash dividends
Profit attributable to ownersof the parent
Acquisition of treasury stock
Disposal of treasury stock
Net changes in items otherthan shareholders’ equity
Total changes during the period
BALANCE, 31st March, 2020

BALANCE, 1st April, 2019
Perchase of shares of consolidated subsidiaries
Cash dividends
Profit attributable to ownersof the parent
Acquisition of treasury stock
Disposal of treasury stock
Net changes in items otherthan shareholders’ equity
Total changes during the period
BALANCE, 31st March, 2020

(1,476)

1–
102,999(15,278)
42,103
0

122

3,533

248,935
1

6,139

6,139

6,139

(15,359)746
15,256(15,359)723–(15,359)
723
–

644
(831)

(13,982)
223,074
0(3,908)650
78,80435
78,839

Capitalstock

CapitalsurplusRetainedearnings

946,421386,8690724,101

841(50)(1,563)

1,509

841
2,197

(50)
71

(1,563)
1,969(12,473)
236,4620(3,908)
3,943

(0)
739

(0)
739

737
(94)

775
223,850(3,533)(34)(1,558)7

253(4,864)(3,533)
5,752

(34)
(170)

(1,558)
638

7
79

253
2,223

(4,088)232,373

Thousands of U.S. Dollars (Note 1)
Accumulated othercomprehensive incomeNet
unrealizedNetgain (loss) on unrealized RemeasureTotal
availablegain (loss)
ments of
Stock
Treasury shareholder’s
for-saleon deferreddefinedsubscription
stock
equitysecurities
hedgesbenefit plansrights

Noncontrollinginterests

Total net
assets

18,092

2,172,764(7,635)

(0)
6,772

321
724,423

(20)
(20)
(136)

3,943

36,230
9

2,303
2,303
9,285

(0)
737

(35,909)18
386,887

1,355(5,488)1–
946,421

(115)

1

3,943

2
42,105

6,981

Total net
assets(5,488)(3,908)–102,999

237,057

Noncontrollinginterests(5,488)(22)(15,256)

See notes to consolidated financial statements

33

TreasurystockMillions of Yen
Accumulated othercomprehensive incomeNet
unrealizedNetgain (loss) on unrealized RemeasureTotal
availablegain (loss)
ments ofStockshareholder’s
for-saleon deferreddefinedsubscription
equitysecurities
hedgesbenefit plansrights

6,772
(863)

2,049,747

85,316(1,249)20,187652

0(35,909)

0(35,909)

36,23036,230

(0)
6,790

(0)
6,790
(32,463)(312)(14,315)

64

2,324

(44,693)

7,121(32,463)

64
725

2,324
20,426(37,563)

52,853(312)(1,562)(14,315)

2,056,877

5,862

2,135,192

Consolidated Statements of Cash Flows
Senshu Ikeda Holdings, Inc. and Consolidated Subsidiaries
For the years ended 31st March, 2020 and 2019

Thousands of U.S.
dollars (Note 1)
2020

Millions of yen
2020
2019
Cash flows from operating activities
Income before income taxes¥

Depreciation

5,042

¥

7,487

$

46,329

5,784

5,320

53,147

Loss on impairment of fixed assets

99

2,101

909

Amortization of goodwill

27

122

248

(Earnings) losses from investments under the equity method

(8)

(27)

(73)

(2,580)(908)(23,706)

(23)

(650)

(211)

Decrease (increase) in net defined benefit asset(1,352)(1,608)(12,423)

Increase (decrease) in net defined benefit liability

(7)

5

(64)

Increase (decrease) in accrued retirement benefits for directors and audit & supervisory board members

(3)

(24)

(27)

Increase (decrease) in reserve for reimbursement of deposits

(92)

99

(845)

Increase (decrease) in reserve for possible loan losses
Increase (decrease) in accrued bonuses

Increase (decrease) in reserve for point services

(71)

8

(652)

Increase (decrease) in reserve for losses on guarantees

(371)

371

(3,408)

Increase (decrease) in reserve for contingent losses

74

29

679

Interest income(44,985)(48,673)(413,351)

Interest expenses

2,655

5,114

24,395(Gain) loss on securities

4,802

336

44,123(Gain) loss on money held in trust

(43)

215

(395)

(Gain) loss on foreign exchange

3,524(1,929)32,380(Gain) loss on sales or disposal of fixed assets, net

(341)

43

(3,133)

Net (increase) decrease in loans and bills discounted(50,417)(15,681)(463,263)

Net increase (decrease) in deposits

42,33743,444

389,019

–

(900)

–

Net increase (decrease) in borrowed money (excluding subordinated borrowings)

86,027(9,056)790,471

Net (increase) decrease in due from banks (excluding due from the Bank of Japan)

833

587

7,654

Net (increase) decrease in trading account securities

61

63

560

Net (increase) decrease in call loans and bills bought and others

476(3,344)

4,373(802,361)

Net increase (decrease) in negotiable certificates of deposit(87,321)(77,681)

Net (increase) decrease in foreign exchange (assets)

Net increase (decrease) in payables under securities lending transactions

45

(65)

413

Net increase (decrease) in foreign exchange (liabilities)

147

(153)

1,350

46,66750,055428,806

Interest paid

(2,917)(5,583)(26,803)

Other

10,002(1,746)91,904

18,074(52,629)

166,075

(721)

(883)

(6,625)Interest received

Subtotal
Income taxes paid
Net cash provided by (used in) operating activities¥

17,352¥(53,512)$

159,44134

Consolidated Statements of Cash Flows
Senshu Ikeda Holdings, Inc. and Consolidated Subsidiaries
For the years ended 31st March, 2020 and 2019

Thousands of U.S.
dollars (Note 1)
2020

Millions of yen
2020
2019
Cash flows from investing activities(133,388)$ (1,761,756)

Proceeds from sales of securities

Purchases of securities¥(191,732)
130,371¥

166,240

1,197,932

Proceeds from maturity of securities

109,227

97,792

1,003,647

Increase in money held in trust(6,000)–(55,131)

Decrease in money held in trust

13,000–

119,452

Purchases of tangible fixed assets(2,937)(4,841)(26,987)

Purchases of intangible fixed assets(1,872)(1,658)(17,201)

Proceeds from sales of tangible fixed assets

806

218

7,406

Proceeds from sales of intangible fixed assets

–

0

–

50,863

124,364

467,361

Net cash provided by (used in) investing activities
Cash flows from financing activities
Decrease in subordinated bonds and bonds with stock subscription rights
Proceed from stock issuance for non-controlling interests
Cash dividends paid

(20,000)

–

–

2,572

(3,908)(5,488)(35,909)(64)

Cash dividends paid for non-controlling interests

(7)

(39)

Purchases of treasury stock(0)(15,359)

(0)

739

723

6,790

(2,896)(40,163)(26,610)Proceeds from disposition of treasury stock
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

(169)

90

(1,552)

Net increase (decrease) in cash and cash equivalents

65,14930,778598,630

Cash and cash equivalents at beginning of year

736,824

706,0456,770,412

Cash and cash equivalents at end of year (Note 27)
See accompanying notes to consolidated financial statements

35

–
280

¥

801,973¥

736,824$

7,369,043

Notes to Consolidated Financial Statements
Senshu Ikeda Holdings, Inc. and Consolidated Subsidiaries
For the Years Ended 31st March, 2020 and 2019%DVLVRI3UHVHQWDWLRQ
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66

Report of Independent Auditor
Senshu Ikeda Holdings, Inc.

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69

Non-consolidated Financial Information of The Senshu Ikeda Bank (Unaudited)
Non-consolidated Balance Sheets (Unaudited)
The Senshu Ikeda Bank, Ltd.
As of 31st March, 2020 and 2019

Thousands of U.S.
dollars (Note 1)
2020

Millions of yen
2020
2019

AssetsCash and due from banks
Call loans and bills bought
Monetary claims bought
Trading account securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchange assets
Other assets
Tangible fixed assets
Intangible fixed assets
Prepaid pension cost
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Reserve for possible investment losses
Total assets¥¥

804,194
6,651
99
50
19,988566,004
3,983,560
5,468
36,76333,247
5,139
11,6678,440
8,210(8,188)(1,934)
5,479,366¥

740,142
7,127
100
112
27,003629,846
3,926,357
5,514
41,43934,864
5,195
10,347
8,123
8,492(8,587)(1,874)
5,434,204$

5,007,681
27,800–
198,571556
24,4191,014¥

4,990,415–
87,321
112,276
408
18,8291,035$ 46,013,792
255,444–1,824,597
5,108
224,377
9,317

4

7

36

519
56
873
8,210
5,269,708

611
141
799
8,492
5,220,340

4,768
514
8,021
75,43848,421,464

61,38588,862
54,180204,429
5,399
(170)
5,228
209,657
5,479,366

61,38588,862
54,862
205,110
8,889
(136)
8,753
213,864
5,434,204

564,044816,521497,840
1,878,425
49,609(1,562)48,0381,926,463$ 50,347,937¥

7,389,451
61,113909
459
183,662
5,200,808
36,603,510
50,243337,802305,494
47,220107,203
77,55275,438(75,236)(17,770)$ 50,347,937

Liabilities and net assets
Liabilities
Deposits
Negotiable certificates of deposit
Payables under securities lending transactions
Borrowed money
Foreign exchange liabilities
Other liabilities
Provision for employees’ bonuses
Accrued retirement benefits for directors and audit & supervisoryboard members
Reserve for reimbursement of deposits
Reserve for point services
Reserve for contingent losses
Acceptances and guarantees
Total liabilities
Net assets
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Total shareholders’ equity
Net unrealized gain (loss) on available-for-sale securities
Net unrealized gain (loss) on deferred hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

¥

¥

¥

70

Non-consolidated Statements of Operations (Unaudited)
The Senshu Ikeda Bank, Ltd.
For the years ended 31st March, 2020 and 2019

Millions of yen
2020
2019

Thousands of U.S.
dollars (Note 1)
2020

IncomeInterest income:Interest on loans and bills discounted
Interest and dividends on securities
Other interest income
Fees and commissions
Other operating income
Reversal of provision for possible loan losses
Recoveries of written-off claims
Gain on sales or disposal of fixed assets
Other income
Total income¥

39,325
5,922
616
17,398
4,949
–
585
363
2,634
71,796¥40,348
8,937
514
16,455
3,642
501
501
10
10,436
81,348$361,343
54,415
5,660
159,864
45,474
–
5,375
3,335
24,202659,707

Expenses
Interest expenses:
Interest on deposits
Interest on borrowings and rediscounts
Other interest expenses
Fees and commissions
Other operating expenses
General and administrative expenses
Loss on sales or disposal of fixed assets
Loss on impairment of fixed assets
Other expenses
Total expenses
Income before income taxes
Income taxes
Current
Deferred
Total income taxes
Net income

71

¥

1,450
218
949
9,357
8,835
42,11223
99
5,480
68,526
3,269

1,752
345
2,975
8,800
11,71743,179
114
2,101
4,587
75,574
5,774

13,323
2,003
8,720
85,97881,181
386,952
211
909
50,353
629,660
30,037

(190)
204
14
3,254

(40)
100
60
5,713

(1,745)
1,874
128
29,899¥$https://www.senshuikeda-hd.co.jp/

https://www.sihd-bk.jp/

SENSHU IKEDA TOKAI TOKYOSECURITIES CO.,LTD.
18-14,Chayamachi,Kita-ku,Osaka 530-0013,Japan
Phone:81-(0)6-6485-0031
https://www.sittsec.co.jp/