Initiatives to Expand Corporate Business- To increase sustainable earnings from services -April 2018
The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

The 13th Medium Term Management PlanBest Bank 2020

Finalof value
co-creation
FinalStage
Stage- 3- years
3 yearsof co-creation

1. Prologue: Initiatives in Regional Revitalization

2. Issues and initiatives in Expanding Corporate Business

3. Measure ① Initiatives in the Evaluation of BusinessMeasure ② Leveraging Alliances

Measure ③ Cooperation with External Partners

4. Initiatives for the Future
The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

1

The 13th Medium Term Management Plan

Prologue:
Initiatives in Regional Revitalization

Best Bank 2020

Finalof value
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Stage- 3- years
3 yearsof co-creation

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Final Stage - 3 years of value co-creation

2

The 13th Medium Term Management PlanBest Bank 2020

Finalof value
co-creation
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Stage- 3- years
3 yearsof co-creation*What is the "Chiba Bank Regional Revitalization Loan Program"? ....
It is a program that provides institutional loans to business operators establishing a start-up
or new business in Chiba Prefecture and adjacent areas. Chiba Bank evaluates the businessbased on the customer's business plan, taking into account the business growth potential andappropriateness of the plan, etc., and provides loans where the principal can be repaid withina maximum of 3 years.

The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

3＜Reference＞
Performance of Chiba Bank Regional Revitalization Loan Program

The 13th Medium Term Management PlanBest Bank 2020

Finalof valueco-creation
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3 yearsof co-creation

The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

4

The 13th Medium Term Management PlanBest Bank 2020

Finalof value
co-creation
FinalStage
Stage- 3- years
3 yearsof co-creation

1. Prologue: Initiatives in Regional Revitalization

2. Issues and initiatives in Expanding Corporate Business

3. Measure ① Initiatives in the Evaluation of BusinessMeasure ② Leveraging Alliances

Measure ③ Cooperation with External Partners

4. Initiatives for the Future
The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

5

The 13th Medium Term Management Plan

Recognized issues and initiatives for expanding corporate businessBest Bank 2020

Finalof valueco-creation
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Stage- 3- years
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External Environment
Diversification of management
challenges in an intenselycompetitive environment

Increase in funding procurement
needs as corporate performancerecovers

Increase in need for work stylereform needs due to labor shortage

To expand corporate business it is vital that
we obtain an accurate understanding of corporate needs and rapidly provide optimal solutions
Recognized challenges

Problems to date
Lack of knowledge of the sector andcommercial flows by people in charge
Mainstream sales style focused on a“product-out” model

１

２

Younger age of corporate staff inpositions of responsibility

Sales know how is tacit knowledge of theindividual
Lending practices based on security andguarantees
Sales network specific to the local
economic area
Corporate sales and marketing thatspecializes in traditional banking services.

3

Initiatives

Identify companies' potential needs
through dialogue with management andoffer prompt solutions to problems
Improve sales proposal skills of corporate
staff in positions of responsibility

Initiatives inthe evaluationof business

Structure new lending schemes

４ Diversify funding procurement methods forcompanies expanding to areas outside of
the prefecture, etc.

Leveragealliances

Expand solutions and reinforce proposal
expertise in response to management
issuesCooperation
with externalpartners

5

The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

6

The 13th Medium Term Management Plan

Aug15

Oct15

Oct15

Nov15

Mar16

Apr16

Jun16

Oct16

Feb17

Apr17Oct17
Start of 12th Medium Term
Management Plan

Establishment of Regional Revitalization
Committee and Evaluation of BusinessSubcommittee

Introduction of special commendations
based on the evaluation of business

Conclusion of the TSUBASA Alliance

Establishment of the Regional
Revitalization Loan Program

Conclusion of the Chiba-Musashino
Alliance

Expansion of program loans based on
the evaluation of businessStart of trade in private placement
bonds for regional revitalization

Enhancement of training forthe evaluation of business

Benchmark disclosurefor financial intermediation
functionsStart of 13th Medium Term
Management Plan

Establishment of ChibaMusashino Alliance Fund No. 1

The 13th Medium Term Management Plan Best Bank 2020

7Final Stage - 3 years of value co-creation* excluding foreign exchange profits and settlement revenues

2017/92017/3
2016/92016/3
2015/92015/3
2014/9Others(PF/PFI, etc.)

Apr14(Unit: Million yen)

Finalof valueco-creation
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Stage- 3- years
3 yearsof co-creation

Best Bank 2020

Trends in earnings from corporate services

M&A

Business matching

Syndicated loans/
commitment lines/
private placement
bonds, etc.
(structured finances)

Covenants finances/
ABL, etc. (leveragingevaluation of business)

The 13th Medium Term Management PlanBest Bank 2020

Finalof valueco-creation
FinalStage
Stage- 3- years
3 yearsof co-creation

1. Prologue: Initiatives in Regional Revitalization

2. Issues and Initiatives in Expanding Corporate Business

3. Measure ① Initiatives in the Evaluation of BusinessMeasure ② Leveraging Alliances

Measure ③ Cooperation with External Partners

4. Initiatives for the Future
The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

8

The 13th Medium Term Management PlanBest Bank 2020

Chiba Bank’s aims in the evaluation of businesses anddetails of initiatives
ChibaBank’saims

Establishment of a stable,
ongoing customer base byincreasing customers that mainly
supported by Chiba BankSTEP4

Sustaining andexpanding regional
economyMeasureinitiatives

Check
progress ofbenchmarks
for financial
intermediation functions

Key issues in promoting theevaluation of businessＡ) Promoting loans based on theevaluation of business, etc.
…[Check item] BM-wide5Ｂ) Strengthening solution proposals
in response to life stages…[Check item] BM-select4
Ｃ) Expanding transactions withcustomers …[Check item] BM-wide1

STEP2
Practice inbusiness scene

Finalof value
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Stage- 3- years
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Sales and earnings of customers in the region[BM-wide1]
No. of customers that mainly supported[BM-select14]
No. of customers that proposed solutions[BM-wide5]
No. of customers that evaluated business⑩ Check initiatives in business scene

STEP3
Spread eachpractice widelyin business
scene⑨ Strength solution proposals in response to management issues⑧ Expand core business supports for customers in the region⑦ Case studies and commendations for successful practice⑥ Increase staff and training both in quality and quantity⑤ Instruct at meetings and branches④ New lending and support schemes

STEP1
Developinternalstructure③ Leverage effective information

Establish PDCA cycle② Cooperate with external partners① Internal tool and manuals, etc.
The 13th Medium Term Management Plan Best Bank 2020

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The 13th Medium Term Management Plan

Establishment of a stable customer base by increasing customers
that mainly supported by our bankEvaluation of business
10,380 partners(23.5％)

18,139 partners(40.2％)

Solution Proposals
Identifying
issues■ No. of partners granted loans based on
the evaluation of business and ratio(non-consolidated basis) (BM-wide 5)

Creating a new sourceof value for the future
by building strong
trading relationships

Best Bank 2020

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5,374 partners(15.2％)

5,674 partners(15.8％)■ No. of partners offered solution proposals
and ratio (group basis) (BM selected 14)

Establishment of a stable,
ongoing customer base

Resolving issues

Increasing customers thatmainly supported by Chiba Bank
24,230 partners(55.0％)

27,037 partners(59.9％)■ Trends in the No. of customers that mainly supported by our bank andratio of total No. of customers (Non-consolidated basis (BM-wide 1)(Reference)
The above figures show trends from
FY3/16 - FY3/17 based on benchmarks
for financial brokerage functions
The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

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The 13th Medium Term Management PlanBest Bank 2020

Case Study:
Cross-solutions based on the evaluation of business

Finalof value
co-creation
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Stage- 3- years
3 yearsof co-creationin healthBusiness transfer Cooperationand nursing care

Solutions by Chiba Bank
・M&A advisory services (④,⑦)
・Syndicated loan: ¥0.6Bil. (⑥)
・Loans based on the evaluation of business,
etc. (⑨)⇒Total ¥1.1Bil.

Advisory
fee

Advisory
fee

Customer Ａ④Ｍ&Ａ advice⑧ Medical
corporationacquisition(2nd Project)⑤ Medical
corporationacquisition

Headquarters

Cooperation in healthand nursing care

③ Links⑦ Ｍ&Ａ advice(2nd Project)

Business transferHeadquarters

Business transfer① Evaluation ofbusiness①’ Evaluation ofbusiness② Actualization ofthe needs②’ Actualization ofthe needs

Customer Ｂ⑥ Syndicated loan
(Refinancing capital)

Branch A
Arrangerfee

Customer Ｃ⑨ Loan based on theevaluation of business(Refinancing funds)
Scheme structuring
fee③’ Links

Branch B

The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

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The 13th Medium Term Management Plan

Leveraging best practice case studies- sharing successful experiences -Best Bank 2020

Finalof valueco-creationFinalStage
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3 yearsof co-creation

We are returning to society details of outstanding initiatives based on the evaluation of business as role model
examples through various channels such as training and case study collections, etc. In efforts to improveexpertise in the field, we are sharing know-how from specific success cases that have engaged in businesssuccessions, M&A, and projects demanding significant funding.

■Examples of commendations; special commendations forsolutions based on the evaluation of business

The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

12

The 13th Medium Term Management PlanBest Bank 2020

Finalof valueco-creation
FinalStage
Stage- 3- years
3 yearsof co-creation

1. Prologue: Initiatives in Regional Revitalization

2. Issues and Initiatives in Expanding Corporate Business

3. Measure ① Initiatives in the Evaluation of BusinessMeasure ② Leveraging Alliances

Measure ③ Cooperation with External Partners

4. Initiatives for the Future
The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

13

The 13th Medium Term Management PlanBest Bank 2020

Initiatives in syndicated loans through alliances

Finalof value
co-creation
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Stage- 3- years
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Increase in the number of transactions where Chiba Bank has acted as the arranger forsyndicated loans using alliances based on cooperation between the Tokyo Metropolitan Area
and the broader regions(Unit: Million yen)

(Unit: transactions)

Total No. of arrangements (left axis)
Of witch, using alliances (left axis)
Arranger fees (right axis)

2014/92015/3

2015/92016/3

2016/92017/32017/9The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

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The 13th Medium Term Management PlanBest Bank 2020

Advantages of alliances with client firms
Advantages for client firms

Finalof value
co-creation
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Stage- 3- years
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Initiatives in the alliance bank

Rapid resolution of issues

Sharing of know-how in the arrangement of structured financeproducts, etc.

Increase in multi-faceted transactions with alliance
trading banks

Subcommittee meetings for each service are held with fellow
professionals from headquarters involved in sales support

Diversified means of solutions

Expansion of solutions line-up of through alliances■ Diversified solutions

Example of Use ①
When developing a new business, a syndicated loan
was arranged by the Chiba-Musashino Alliance andthe TSUBASA Alliance to “secure information routes
by building relationships with local banks in thearea of the new business" and "establish theprocurement of funds at an early stage."

Syndicatedloans

Business
succession
fund*

Co-financingandCooperative
Lease

Example of Use ②


A syndicated loan was arranged for a publicly traded
company requiring large procurement lots per roundby Chiba Bank and Musashino Bank (neither ofwhich the company had had loans withpreviously), allowing it to quickly procure funding.

Issue of private
placement bonds- donation type (same donationrecipient)* Using Chiba-Musashino Alliance Fund No. 1M&A

The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

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The 13th Medium Term Management PlanBest Bank 2020

Case Study:
Use of alliances for cross solutions

Diversification offunding procurement

New loantransaction

LeasingCompanyLong-term businessdevelopment

Finalof value
co-creation
FinalStage
Stage- 3- years
3 yearsof co-creation④‘ Leases【Cooperation】

New business withgroup company③’ Syndicated loan [participation]

Building relationships
with local banks

Solutions by Chiba Bank group
・Syndicated loan: ¥1.2Bil. (③)
・Chibagin leasing ¥0.38Bil. (④)
・Chiba-Musashino Alliance Fund No. 1:¥0.12Bil. (⑤)

Chiba-Musashino AllianceFund No. 1⑤ Fund contribution④ Leases 【Cooperation】

LeasingCompany

New loantransactions③ Syndicated loan (working capital) [arrangement]

Arrangerfees② Actualization of the needs

New business withgroup company① Evaluation of business

Customers③ Syndicated loan [participation]

New loantransaction

TSUBASA Alliance banks
The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

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The 13th Medium Term Management PlanBest Bank 2020

Number of tie-ups with business partners

Finalof value
co-creation
FinalStage
Stage- 3- years
3 yearsof co-creation

1. Prologue: Initiatives in Regional Revitalization

2. Issues and Initiatives in Expanding Corporate Business

3. Measure ① Initiatives in the Evaluation of BusinessMeasure ② Leveraging Alliances

Measure ③ Cooperation with External Partners

4. Initiatives for the Future
The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

17The 13th Medium Term Management Plan

Increase in business matching using links with external partners

Best Bank 2020

Finalof valueco-creation
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Stage- 3- years
3 yearsof co-creation

We will increase the number of contracts according to the needs of our client firms by stepping up
cooperation with external partners to flexibly and pro-actively expand the solutions we can offer
No. of tie-ups withexternal partners(Unit: contracts)

More than150

No. of business matching contracts

2014/92015/3

2015/92016/3*The above number of contracts does not include the number of contracts
with group companies, etc.

2016/92017/32017/9The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

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The 13th Medium Term Management PlanBest Bank 2020

Diversification of solutions provided by partner firms

Finalof value
co-creation
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Stage- 3- years
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The diversification of solutions utilizing external partners has resulted in an increase in contracts
for the introduction of solar energy and energy saving equipment,
as well as contracts for securing human resources and for welfare benefits, among others
2014/92017/9Recruiting/welfaremanaging

Others9％

Cost reducing 5％

６％Vending machine

15％
Consulting

Securing/
Disasterpreventing

48％

8％Advertising/PR

20％*The above number of contracts does not include the number of contracts
with group companies and contracts related to construction, etc.

Vending machine％

7

Consulting

12％

Others3％

Securing/
disasterpreventing

28％
Solar power/

Advertising/PR

16％energy-saving
equipment

23％

The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

19The 13th Medium Term Management Plan

Provision of optimal solutions through external partners

Best Bank 2020

Finalof valueco-creation
FinalStage
Stage- 3- years
3 yearsof co-creation

We will proactively strengthening cooperation with external partners to be able to offer optimalsolutions in response to the diverse needs of our client firms
Funding Procurement andProperty Purchase

Business expansion

Business Succession and M&A

Securing of human resources andimproved business efficiency

Industry and academia tie-ups

The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation20

The 13th Medium Term Management PlanBest Bank 2020

Recent Business Partnerships
Feb21

Finalof valueco-creation
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Stage- 3- years
3 yearsof co-creation

Business partnership with PR TIMES Co., Ltd.

Customers
Releases of new products, services, events,
campaigns and financial results, etc.

Mar
7Transmitted to the consumer

Business partnership with BIZ REACH Co., Ltd.

Register

SearchInformation

Transfercompany

Communication
Register

SearchAdvisorTransferredcompany

Information

The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

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The 13th Medium Term Management PlanBest Bank 2020

Finalof value
co-creation
FinalStage
Stage- 3- years
3 yearsof co-creation

1. Prologue: Initiatives in Regional Revitalization

2. Issues and Initiatives in Expanding Corporate Business

3. Measure ① Initiatives in the Evaluation of BusinessMeasure ② Leveraging Alliances

Measure ③ Cooperation with External Partners

4. Initiatives for the Future
The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

22

The 13th Medium Term Management PlanBest Bank 2020

Initiatives for the Future

Finalof value
co-creation
FinalStage
Stage- 3- years
3 yearsof co-creation

We will raise productivity by improving the efficiency of business operations and improve the topline by strengthening our expertise in proposal sales
Trial of proposal sales app for proposal sales
for companies using tablets

Anticipated resultsof introduction

 Achievement of rapid responses through theuse of resource document links and searchfunctions(strengthening our expertise in proposals)
Increase in the number of contracts
for business matching, etc.
 Reduction in visit preparation time andimproved efficiency in business operations
through use of paperless media
Creation of sales time
(approx. 15 minutes per day)Introduction of trials for 100 users(Apr 2018 - Mar 2019)
Business matching

Program loans

Seminars/
business meetings

Publicly available
support information

External reports

IR/
Press materials

Simulations

Tools fordiscovering needs

Group Companies

 Development of capabilities of young staff
members at an early stage through effective
use of spare time
Enhancement of OJT Visualization of proposal sales know-how ofhigh performers
Visualization of advanced proposal
skillsThe 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

23

【Matters to note】
This material was prepared for the purpose of providing a generalexplanation of the products and transactions described herein. It isneither a statement of terms and conditions of any specific product ortransaction, nor a request to enter into any of sales agreement for aspecific product, or a solicitation of any such request.
Please refrain from copying or distributing in any other manner
information in this material either in whole or in part, or disclosing it toany party apart from relevant persons in your company without first
notifying Chiba Bank.

The 13th Medium Term Management Plan Best Bank 2020

Final Stage - 3 years of value co-creation

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