2013 Mid-Term Business Plan

2013 Mid-Term Business Plan: “V-Plan –Evolution to the Bank for Proposals with Value”
The Gunma Bank has launched its 2013 mid-term business plan: “V-Plan – Evolution to the bank for proposals withvalue” for the three-year period from April 2013 to March 2016.
Concept / Name
Under the plan, we will continue the “Improvementof quality of service” that we have been working
on to date, while evolving our basic concept to“Proposals with value” in our endeavor to achieveeven greater competitiveness.

Basic Concept
Q-planApril 2007 – March 2010Becoming aquality bankDesired Corporate Image“The leading regional bank offering customers
proposals with value”

Q-up80April 2010 – March 2013
Further challenges forbecoming a quality bankV-planApril 2013 – March 2016
Evolution to the bank for
proposals with value
Proposals withvalue

Measures to improve service quality(over six years)
Service with adifference

Practicing activities that offer proposals with value

Improving quality
in every aspect

Enhancement of corporate consulting functions
Expansion of personalized marketing and direct banking“Proposals with value” means making proposals with value unique to the Bank, based on the understanding of customer
needs. As a regional financial institution, we recognize the importance of always sharing our customers’ point of view
when assessing issues and determining solutions, and will proactively make attractive proposals for our customers.
l Basic Policies and Strategic Direction
Four Basic Policies

Strategic Direction

Increasing capacity to offer proposals with value

Desired corporate image

Enhancement of corporate consulting functions— Strengthening of support for growth— Response to overseas expansion needs— Full corporate rehabilitation support
Expansion of personalized marketing and direct banking— Reinforcement of marketing and enhancement of consulting— Expansion of direct banking
Clarification of regional strategy and reinforcement of capacities at sales locations
Reinforcement of loan management and buildup of fee business

Strengthening the operational base and pursuing increased operational efficiency
Reinforcement of IT strategy and enhancement of system infrastructure
Establishment of low cost operations
Upgrade of risk management
Strengthening of market management capacity
Efforts to enhance capital adequacy and increase shareholders’ value

Bolstering human resources development and improving organizational vigor
Human resources development for stronger proposal capacity
Effective use of diverse human resources for a more vigorous organization

Contributing to regional society

The leading regional bank offering customers“proposals with value”

Four basic policies
Increasing capacity tooffer proposals withvalue

Strengthening theoperational base andpursuing increased
operational efficiency

Contributing toregional society

Nine basic strategies
Sales strategy
Strategy for corporate clients
Strategy for individual clients
Regional and channel strategy

Initiatives to revitalize the regional economy
Environmental conservation and social contribution activities

Bolstering humanresources development
and improving
organizational vigor

Market management strategy

Operational base strategy
IT and administration strategy
Operational management and capital
strategy
Risk management strategy
Organization and human resources
strategyContribution to regional societyl Numerical targets for the fiscal year ending March 2016
Growth potential

Profitability

Retail loans outstandingat year-end

3,520.0 billion yen

Core business gross profit

96.0 billion yen

Core business net profit36.0 billion yen

Net profit

19.0 billion yen

Efficiency

Soundness

Core business net profit
ROA

Approx. 0.5%

OHR

Approx. 62%

Consolidated Common
Equity Tier 1 ratio

Approx. 13.5%

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