ANNUAL REPORT 2023

Corporate Philosophy
Moving Forward with the Region,
with Heartfelt Kindness Toward Customers
We have promoted community- based finance rooted in the regional area and contributed to the local
economy and society, with the spirit of "acting as a reliable adviser to small- and medium-sized enterprises
in Chiba Prefecture". Putting our corporate philosophy into practice, we will strive to be a bank that provides
useful support to customers.

Contents
2

Message from the President

5
7
8
9
11
12
13
14
15
17
27

History of the Chiba Kogyo Bank
Chiba Prefecture –Our Business BasePartnership with Regional Banks
Value Creation Process
Making the CKB Community a Reality
Long Term Management Vision and Strategy
Financial Highlights (Non-Consolidated)
Non-Financial Highlights
Medium Term Management Plan
Our Sustainability Initiatives
Initiatives for TCFD Recommendations

31
37

Corporate GovernanceDirectors, Audit & Supervisory Board Members and Executive Officers

42
43

Corporate Outline, Consolidated Subsidiaries
Organization Chart

44
45
46
53

Summary of Selected Financial Data(Consolidated)
Business Performance (Consolidated)
Consolidated Financial Statements
Major Shareholders (Common Stock)1

Message from the President

We establish CKB community by creating
new value that connects stakeholders toeach other and transforming existing
businesses.
As always, I would like to express my sincere
gratitude for your continued patronage andsupport for the Chiba Kogyo Bank (the“Bank”).
On this occasion, we have formulated the“Annual Report 2023,” which highlights the
Bank’s management activities and operating
results, and provides other initiatives. We
would be pleased if stakeholders could takethe time to peruse this document.

Hitoshi Umeda
President (CEO)Business environment
Chiba Prefecture, the base of the Bank’s business, celebrated its 150-year anniversary
this year. Chiba Prefecture is a region with a variety of different characteristics, such as
the bay area, which is close to central Tokyo and contains large amusement parks,
shopping facilities, and factories, and the Minamiboso area, which offers beautiful,warm seas and verdant hills. Each industry, such as agriculture, fisheries, manufacture,and commerce, has developed in a well-balanced manner, taking advantage of theseregional resources.
As for economic conditions within Chiba Prefecture, business sentiment among
prefectural enterprises has been showing signs of improvement amid a situation
where the economy has been mounting a moderate recovery following on the COVID19 pandemic spanning more than three years. On the other hand, the outlook going
forward remains uncertain amid factors that include surging raw material prices andutility costs largely attributable to yen depreciation and supply chain issues, labor
shortages amidst recovering demand, and a scenario of wage hikes, which serve as thefoundation of a positive economic cycle, not keeping pace with rising prices.
Taking a long-term view, however, Chiba Prefecture with its population exceeding 6.2
million is poised for further growth going forward given that it boasts well-establishedinfrastructure such as the Ken-O Expressway and Narita International Airport, alongwith its favorable location adjacent to Tokyo, which serves as a major consumer hub.
Following on the hardships posed by the COVID-19 pandemic, we seek towholeheartedly contribute to the region going forward serving as a regional financial
institution with Chiba Prefecture poised to achieve further growth looking beyond its
150-year anniversary.
2

📖 P7
Chiba
Prefecture–
Our Business
BaseMessage from the President
To Establish the CKB Community
Our notion of the “CKB Community” refers to the network of connections among allof our stakeholders. We contend that new value and innovation is bound to emerge
from a situation where ties become stronger not only between the Bank and its
stakeholders, but also among our business partners and among our stakeholders
within the region. This, we believe, will bring us ever closer to addressing social
challenges and giving rise to happiness for all.
Under our Long Term Management Strategy, we seek to design everyone’s happiness
together and establish the “CKB Community,” which is built based on solid
relationships with stakeholders. To such ends, we will engage in initiatives that entailchanging all banking transactions to digitally-based ones, establishing anorganizational base capable of enlisting a specialized Consulting Kodo approach thatinvolves continuous reflection and action more than ever before, developing anapproach that enables us to offer new value connecting stakeholders to each othermaking use of digital technologies, and increasing the Bank’s earnings power andasset efficiency.
As one of the contents that connects stakeholders to each other, we have launched“Chibatoku!”, a website that provides information on products, services coupons, andetc. of our business partners. We believe that we will not only broaden the scope of
our consulting proposals and deepen our relationship with our business partners by
gaining better understanding of their actual conditions based on the website browsing
analysis, but also contribute to their growth and regional revitalization by becoming abridge between our business partners, coupon users, and the local community.
In addition, by upgrading non-face-to-face channels such as business portals andsmart phone apps, and expanding the functions of over-the-counter tablets, we will
greatly reduce and simplify bank transaction procedures and seek to improvecustomer convenience.
Medium Term Management Plan Progress
The Medium Term Management Plan is positioned as the stage for building a platform
toward pursuing the Long Term Management Strategy.
Looking back on what transpired during the first year of the Medium Term Management
Plan, it was a year of numerous challenges that included market volatility due to rising prices
and interest rate hikes in various countries, offset by moderate recovery of the prefecture’s
economy in wake of the COVID-19 pandemic, as mentioned previously. Amidst that scenario,
the Bank has been solidifying its commitment to rigorous consultancy and support
accompanying its business partners to the extent that such commitment has come to berecognized externally as a strength of Bank. The Bank has attained record-high results interms of fees and commissions, which is likely attributable largely to success it has achievedin serving its corporate customers by providing operational support encompassing initiatives
to address the five major needs such as business succession, labor shortages, management
streamlining, DX, and decarbonization, and in serving its retail customers by facilitating asset
formation and making estate planning recommendations aligned with their life plans.
Meanwhile, the Bank has sought to heighten corporate value by striving to increase thevalue of its common stock through cancellation of its preferred stock, while going forward
the Bank will continue to reduce the total amount of preferred stock issued by pursuing
greater capital efficiency and accumulating retained earnings.
Also when it comes to the metrics cited as key performance indicators, we have gained
recognition for having made solid progress toward the targets of the final fiscal year of theMedium Term Management Plan. This includes, profit of ¥6.4 billion against the target of¥6.7 billion, core OHR of 70.02% against the target of 69%, ROE of 4.12% against the target
of 4%, equity ratio of 8.67% against a target of the mid-8% range, and ratio of issued
preferred stock of 34.39% against the target of 30%.

3

📖 P11
Making the CKBCommunity a
Reality📖 P21
Our
Sustainability
Initiatives

📖 P16
Medium Term
Management
Plan

Strengthening Consulting Personnel and Developing Human Resources for the Entire Region
In order to provide high-quality consulting services, we must create an environment
in which we can specialize in consulting, and at the same time, our employees musthave a high level of expertise and demonstrate their skills to the fullest extent.
We have established a well-developed system by assigning personnel with expertisein specialized fields such as business succession, M&A, medical care, agri-foodbusiness, and international operations to the Consulting Support Desk. Consulting
requires a high level of specialized knowledge. Furthermore, it requires criticalthinking skills to understand not only the business partners’ current business issues,
but also their potential needs and to propose solutions. In addition to providing
practical consulting training through case studies, we are further strengthening ourconsulting personnel by creating an environment where employee can learn on theirown initiatives through learning community sites and other means, and by curriculumthat encourages logical thinking skills.
We established the “Makuhari Gakumonjo” at the site of the former MakuhariTechno Garden Branch as a dedicated facility for group discussions and hands-on
learning, we hold cross-industrial exchange workshops at the Makuhari Gakumonjo,
where employees of our business partners are invited to participate in training
together with our employee for the purpose of networking with people outside thecompany and learning logical problem-solving methods.
Many of our business partners have told us that they cannot afford to provide
business skills and other training to their employees. I believe that if we can contributeto their human resource development and ultimately their business growth throughthis kind of initiative, it will lead to sustainable growth for the entire region.
Toward Sustainable Growth of the Region
In order for the region to continue to grow sustainably, we must not only prioritize
economic development, but also solve many other issues, including human resource
development, as I mentioned earlier. To contribute to the growth and development ofa variety of stakeholders and to increase corporate value through the continuous andstable growth of the Bank, and thereby contribute to the sustainable development andprosperity of the local economy, industry and society, we have established a set ofsustainability key issues (“Revitalizing industry and creating appeal for Chiba”,“Cultivating the human resources that will be responsible for the future of Chiba”, and“Realizing a prosperous Chiba where people can live with peace of mind”) and are
implementing a wide range of initiatives.
With regard to “decarbonization” in particular, we recognize that decarbonization
management is an important mission for companies, and that the implementation of
decarbonization management will lead to increased corporate value. In addition todisclose our management strategy in response to climate change, we are also strongly
promoting decarbonization support for our business partners by measuring CO2
emissions, provision of CO2 emission reduction solutions, and carbon offset trading.
Last but not least, the Bank, with officers and employees joining together as one,will take initiatives in various issues to meet the expectations of shareholders,customers and community members. We sincerely ask for your continued guidanceand support.

📖 P24
Our
Sustainability
Initiatives

📖 P17
Our
Sustainability
Initiatives

📖 P27
Initiatives
for TCFD
Recommendations

July 2023

Hitoshi Umeda
President (CEO)4History of the Chiba Kogyo Bank
Based on the founding spirit of “acting as a reliable adviser to small- and medium-sized enterprises in Chiba
Prefecture”, we have made every effort to develop Chiba Prefecture, as a financial institution rooted in thelocal community. We will continue to contribute to the sustainable development and prosperity of the region.

(Billions of yen)

Balance of Deposits

Balance of Loans

March 1952
（At the time of establishment）
Deposits：¥229 million
Loans ：¥112 million

1952●Establishment
Share capital：¥50 million

1965
1972
1975
●Determine●Built the new●Online transaction
Bank'shead office building
began operation
nickname as
1973“Chiba Kogin” ●Listed on 1st section of
the Tokyo Stock Exchange

5March 2023
Deposits：¥2,834.2 billion
Loans ：¥2,356.7 billion

1991●Formulation of a corporate
Philosophy and adoption of
the cosmos flower as
the Bank symbol

2018●Concluded “FinX Partnership” agreement●Established “FinX Digital Co., Ltd.”The Bank Symbol
The cosmos flower

2000●Injection of ¥60.0 billion of public funding

2019●Entered the paid job-placement service
business (human resources referral operations)

2004●Established The Chiba Kogin “Keiei Juku”●Transfer of core systems to NTT DATA’s
Regional Bank Integrated Services Center

2022●70th anniversary of establishment●Started using “CHIBA CORGI” as the
Bank’s mascot character

2013●Repayment of ¥60.0 billion of publicfunding6

Chiba Prefecture – Our Business Base・The population of Chiba Prefecture
Chiba Prefecture has a population of 6.26 million, the 6th largest in Japan. While the population is declining
nationwide, the population of Chiba Prefecture remains at the same level. The net population influx into
Chiba Prefecture in 2022 is 8,568, which is the 4th place in Japan. The prefecture remains attractive as arelocation destination.
・Infrastructure of Chiba Prefecture
Chiba Prefecture is located adjacent to Tokyo, andplays an important role in the functions of the Greater
Tokyo Area.
The prefecture is a hub of human flow and logistics,
with access to all land, sea, and air networks. An
extensive transportation network, including the Tokyo
Bay Aqua-Line (Trans Tokyo Bay Highway connecting
Chiba and Kanagawa Prefecture) and the beltway,
connects the core cities of the Tokyo metropolitan
area with Narita International Airport, Japan’s air
gateway, and the Chiba Port, one of Japan’s leading
trading ports. Chiba Prefecture is rich in tourism
resources with various characteristics depending on
the region, such as the bay area, which is close tocentral Tokyo and contains large amusement parks,international convention centers, and commercial
facilities, and the Minami-Boso area, which offers
warm and beautiful sea and verdant hills. The
prefecture strives to attract companies and support
immigration and it is expected to create more jobs
and the local economy growth.

NaritaInt'l Airport

Chiba Port
Haneda Airport
Tokyo BayAqua-Line・Diverse industries in Chiba Prefecture, which rank among the top in Japan
Industries inside the prefecture are extremely active and well-balanced, and the prefecture is in the top
rank nationally - in agriculture, fishery, manufacture, commerce and also gross prefectural product.
Gross Prefecture Product(nominal)¥ 21.2 Trillion

7 th among
Japanese Prefectures

2019

Agricultural Output¥ 347.1 Billion

6 th among
Japanese Prefectures

2021

Fishery Production Volume

105K Tons

7 th among
Japanese Prefectures

2021

Manufacturing Output¥ 11.9 Trillion

8 th among
Japanese Prefectures

2021

Retail Sales¥ 0.9 Trillion

7 th among
Japanese Prefectures

2022

Source: 2022 Population Estimates, Report on Internal Migration in Japan, Statistics Bureau of Japan, 2019 Cabinet Office, 2021 Statistics of Agricultural
Income Produced, 2021 Production Statistics for the Fishing and Aquaculture industries, Ministry of Agriculture, Forestry and Fisheries, Economic
Census 2021, Statistics Bureau of Japan, Current Survey of Commerce 2022, Ministry of Economy, Trade and Industry

7

Partnership with Regional Banks
・NTT DATA Regional Bank Integrated Service Center / CMS-WG
The Bank has participated in the Regional Bank
Integrated Service Center. The Center is managed
by the NTT DATA Corporation and provides corebanking systems for regional banks.
In order for each participating bank to stably
provide financial services to customers even in theevent of a large-scale disaster, NTT DATA and theparticipating banks have entered into an agreement
for mutual cooperation in maintaining financial
functions or early recovery in the event of a disaster.
In addition, the Bank also participates in “CMSWG," which was established by the Regional Bank
Integrated Service Center and MEJAR participatingbanks across group frameworks to improve theefficiency of system operation, as well as "CMSCSIRT" a collaborative organization in the field ofcybersecurity.

Regional Bank Integrated
Service Center
The Bank of Kyoto, Ltd.
The Chiba Kogyo Bank, Ltd.
The Bank of Iwate, Ltd.
The Senshu Ikeda Bank, Ltd.
The Aichi Bank, Ltd.
The Fukui Bank, Ltd.
The Aomori Bank, Ltd.
The Akita Bank, Ltd.
The Shikoku Bank, Ltd.
The Tottori Bank, Ltd.
The Nishi-Nippon City Bank, Ltd.
The Oita Bank, Ltd.
The San-in Godo Bank, Ltd.

The Bank of Yokohama, Ltd.
The Hokkaido Bank, Ltd.
The Hokuriku Bank, Ltd
The 77 Bank, Ltd.
The Higashi-Nippon Bank, Ltd.
The Hiroshima Bank, Ltd.*NTT DATAThe utilization of BeSTA(Banking application engine for STandard Architecture)*The Hiroshima Bank, Ltd. plans to join the MEJAR system sharing from FY2030.

・Investment in “Regional Future co-creation Search Fund”
In an effort to contribute to solving regional and social issues such as the lack of successors for small andmedium-sized businesses, the Bank has invested in the Regional Future Co-Creation Search Fundestablished by YAMAGUCHI CAPITAL Co., Ltd., a subsidiary of Yamaguchi Financial Group, Inc.
Search fund is an investment model that originated in the U.S. and was established with the purpose ofsolving business succession issues and supporting business growth of regional companies.

・Fincross DIGITAL
The Bank has participated in the Fincross Partnership which
was established by eight regional banks, including the Bank,
with the aim pf promoting the digitization of each bank.
We have also established Fincross DIGITAL Co., Ltd., a joint
venture for collaborative research and development basedon the partnership that have agreed to work together inpromoting the digitization of finance. Collaborative
development and research by multiple banks is expected tohave the effect of enabling the provision of new financial
services, the introduction of technology, and advanced data
analysis and utilization.
The Gunma Bank, Ltd.

The Fukui Bank, Ltd.

Tsukuba Bank, Ltd.
The San-in Godo Bank, Ltd.

The Chiba Kogyo Bank, Ltd.
Kiraboshi Bank, Ltd.
The Senshu Ikeda Bank, Ltd.
The Shikoku Bank, Ltd.

8

Value Creation Process
We aim to offer value to our stakeholders, contribute to sustainable development of the region’scommunities, and keep designing everyone’s happiness together as a reliable partner by investing theBank’s managerial resources to develop corporate activities for solving various issues.

External Factors / Issues facing Chiba Prefecture●Declining birthrate and aging population ●Transformation of lifestyle and business model●Raw material shortage, labor shortage ●Prolonged low interest rate policy●Progress in financial technology ●Raised awareness of crime and disaster prevention●Worsening environmental problems

Managerial
Resources

Human CapitalLong Term
Management
Strategy●1,264 Employees●Employees withextensive expertise●A free-spirited
corporate culture

Mid-Term Management Plan

Happiness Design,
KIZUNA Project 2025

Intellectual Capital●Ability to gather
information and makeproposal●FinX Digital

Readiness to be dedicated to consulting

Organizational BaseSocial Capital●Rich market●Group companies●Collaboration with othercompanies in the same
industry and different
types of industries●Industry-governmentacademia
collaboration

Financial Capital●Sound capital

Design everyone’s happiness together
and establish “CKB Community,”
which is built based on solid
relationships with stakeholders

Accompanying-type consulting

Operating BaseManagement for which you have a security feeling and expectation

Management Base
Underlying support by digital and technologicalinnovation, assistance toward the realization

Risk Management/
Compliance9Corporate
GovernanceWe contribute to solving social issues
by realizing our vision.

Long Term
Management
VisionContinue to design
everyone’s happiness together
as a reliable partner

Offering Value to our Stakeholders

Contributing to Sustainability

Establishment of CKB Community

the Sustainability Key Issues

Shareholders●Sustainableimprovement incorporate value●Maintaining
transparent and soundmanagement

Customers●Growth anddevelopment ofcustomers

Officers andEmployees●Ensuring diversity●Providing educationand opportunities●Improving whistleblowing system

Revitalizing industry and creating
appeal for Chiba

Cultivating the human resourcesthat will be responsible for the
future of Chiba

Realizing a prosperous Chiba
where people can live with peaceof mind●Growth anddevelopment of theregion’s communities
Regional●ResponsetoCommunities
sustainability●Collaboration with
regional administration

KPI ▶ P19

10

Making the CKB Community a Reality
The Bank's long-term management strategy is to ‘Design everyone’s happiness together and establish “CKB
Community,” which is built based on solid relationships with stakeholders.’

The CKB Community
Our notion of the “CKB Community” refers to the
network of connections among all of our stakeholders,above and beyond solid relationships between the Bankand its stakeholders.
The Bank employs a Consulting Kodo approach which
entails identifying the real challenges and needs of its
partner regions and customers and earnestly taking actionthat involves presenting ideas for addressing solutions.
Accordingly, the CKB Community derives from outcomesachieved by continuing to accompany our stakeholders
toward realizing happiness while enlisting expertise wehave gained through the aforementioned initiatives anddrawing on the trust, information, and networks that are
distinctive to a regional financial institution.

customers
shareholdersbusiness
partners
CKB
Community

regional
admini
employees-stration
face-to-face consulting/
Next-generation Growth Engine

Objectives to be achieved by establishing the CKB Community
We embrace an unwavering inherent desire to give rise to people’s happiness. Since its founding, the Bank’s
ultimate mission has been that of consistently serving as a reliable advisor to its customers and giving rise tohappiness of its customers. We seek to become a corporate group with an absolute presence indispensable
to the area and our customers by breaking free from the confines of traditional banking while retaining ouridentity as a kind partner, and by continuing to give rise to growth and happiness of our stakeholders invarious contexts beyond finance.

To establish and expand the CKB Community
We seek to develop a community by shifting to digitally-based solutions for all of our banking transactions
and by establishing an organizational base capable of placing more focus on enlisting a Consulting Kodo
approach. Moreover, we will furthermore deepen our connections, ties and familiarity with our customers by
gaining a more extensive understanding of each and every one of them as we engage in dialogue enlisting
our basic stance of Consulting Kodo. We will also address diversifying expectations and demands of society
and will build a transparent and efficient management base that is more highly valued by our stakeholders
than ever before.

11Long Term Management Vision and Strategy
While customer needs have changed and been diversified constantly, the feeling of “hoping to be happy”
that is the essence of those needs never changes. Based on this recognition, we have decided to call forcontinuing to accompany customers toward realizing happiness through “Consulting Kodo” of always thinking
and acting in the Long Term Management Vision. By continuing to design everyone’s happiness we aim to bea bank that continues to be chosen, with an absolute presence indispensable to the area and our customers.
Under the Long Term Management Strategy based on the Long Term Management Vision, we aim toestablish “CKB Community,” a circle of links created by designing many “happiness” through trust and theutilization of information/networks that we can have because of being a regional financial institution, in notjust traditional finance but various scenes.

Long Term Management Vision

Continue to design everyone’s happiness
together as a reliable partner”Designing Happiness”
Sharing diverse potential needs that bring happiness tocustomers as a reliable advisor, and continuing toaccompany them toward the realization”Group image that we aim to be”

FY2031
Establish CKB Community

A bank that continues to be chosen, with an absolutepresence indispensable to the area and our customers
Long Term Management Strategy based on Long Term Management Vision
Design everyone’s happiness together and establish “CKB Community,”
which is built based on solid relationships with stakeholders

FY2028-2030
Complete entrenchment

FY2025-2027
Building up a posture

FY2022-2024
Establishing
the base

Vision of consulting a decade from now
Positive feedback model for consultancy through face-to-face and digital interaction
We provide an inspirational level of information and consulting optimally alignedwith our customers, based on data as well as accompanying-type, face-to-faceconsulting closely tailored to challenges addressed by each and every one of ourcustomers.

Next-generation Growth Engine
This serves as the starting point for banking transactions that provide solutions and regionspecific information enlisting digital technologies centered on addressing evident customer
needs.

Vision of new value creation a decade from now
Positive feedback model for mutual growth enlisting a Next-generation Growth Engine
Achieving connections and growth among stakeholders enlisting a Next-generation Growth Engine

Basic Strategies❶Sales Strategy❷Productivity Improvement❸Management Base

Relentless pursuit ofconsulting that brings
happiness to customers

Devise sources and reallocation ofmanagerial resources to ensure thestructure for sales strategies and amanagement base

Solve business challenges andestablish a management baserecognized by stakeholders while
fulfilling social responsibilities

Mid-Term Management Plan

Happiness Design, KIZUNA Project 2025
~ Toward Establishment of CKB Community 1st Stage ~12

Financial Highlights (Non-Consolidated)
Ordinary profit

ProfitDeposits(Millions of yen)

(Millions of yen)(Billions of yen)
Deposits

Personal Deposits

2,781.6 2,816.7 2,834.2

2021.3 2022.3

2021.32023.32022.32023.3

2,067.0

2,117.4 2,122.3

2021.32022.32023.3Loans and Bills Discounted

SME Loans / Housing Loans

ROE (Net income basis)(Billions of yen)(Billions of yen)(%)
Housing Loans

SME Loans

2,297.6 2,306.5 2,356.7

1,173.3

1,153.3
853.1

863.0

1,245.6

831.1

The higher the value, thegreater the profitability ofshareholders’ equity.

2021.32022.32023.32021.32022.32023.32022.32023.32022.32023.32021.3

ROA (Net income basis)

Core OHR

Equity Ratio

(%)

(%)

(%)

The higher the value, thegreater the profitability ofmanagement.

2021.32022.32023.3The lower the value, thegreater the efficiency ofmanagement.

2021.32022.3132023.32021.3

Non-Financial Highlights
Ratio of Female Officers(Manager level or above)(%)

Percentage of Employees Taking
Childcare Leave(%)● Women2021.3 2022.3

2023.3● Men

2021.3 2022.3

2023.32021.6 2022.6 2023.6

Women: Calculated by dividing the number ofwomen who took childcare leave by the
number of female employees who gave birth.
Men: Calculated by dividing the number of men
who took childcare leave by the number of male
employees whose spouses gave birth.

Ratio as of June 1

Number of Employees Acquired 1st

Number of Employees Acquired
Information Technology Passport
Examination(People)Issuance of Chiba Kogyo Bank
Grade Certified Skilled Professional
SDGs Private Placement Bonds of Financial Planning
Issue amount (Billions of yen)

Employment Rate of People with
Disabilities(%)(People)●Number of Bonds

2.98
2.65
1.15
2021.32022.32023.3

Number of Companies
Supported by Consulting Services(Number of cases)

2021.32022.32023.32021.3 2022.3

2023.3External Evaluation

Supported in Relation to Business Succession
Supported in Relation to M&A

2021.32022.3 2023.3“Platinum Kurumin Plus”
certified“Eruboshi”
highest grade designation

This certification is awarded tocompanies that carry out measures tosupport employees with children tomeet the higher standards ofaccreditation that is set by the Ministryof Health, Labor and Welfare.

This certification is awarded by the
Ministry of Health, Labor and Welfare
to superior companies that promotewomen’s participation and advancement.

14

Medium Term
Management Plan

Happiness Design, KIZUNA Project 2025
~ Toward Establishment of CKB Community 1st Stage ~The Medium Term Management Plan “Happiness Design, KIZUNA Project 2025 ~ Toward Establishment of
CKB Community 1st Stage ~” is taken to be the stage for building three bases toward the establishment of theLong Term Management Strategy “CKB Community,”

Medium Term
Management Plan

Readiness to be
dedicated to consulting

Organizational Base

Happiness Design, KIZUNA Project 2025
Management for which you have

Accompanying-type
consulting

a security feeling and expectation

Operating BaseManagement Base~To improve productivity~~To design Happiness~

Freed from and unrestrictedby time and location

To an efficiency-oriented
sales style~Toward sustainable
management~
Open up to markets andshareholders

Diversification of employment
and work conditions

Enhance provision of
nonfinance and information

Response to recycling-based
communities and society

Raising the level ofexperience and know-how

Embody a reliable advisor
digitally

To management pursuing
total optimization

Underlying support by digital and technological innovation, assistance toward the realization

Organizational BaseWe will promote efficiency by digitizing all transactions, including deposits, loans, and exchange, which
are unique to banks, and develop an environment where management resources that have been spenton them can be focused on face-to-face consulting.
Furthermore, we will diversify employment and working conditions, and strengthen the organizationalbase by actively developing and utilizing human resources based on meritocracy.

Operating Base
We aim to increase the number of core business partners by further expanding "value support
operation" for corporate customers and "life planning proposals" for retail customer, while emphasizing
an efficient sales style that utilizes digital technology based on “consulting Kodo”.
In addition, by analyzing and utilizing a wide range of accumulated data, we will understand the latentneeds beyond financial field of customers, and improve both the quality and quantity of our consulting
services.

Management Base
While fulfilling all various social responsibilities and new requests required to be met, we will promote
more transparent and efficient management than ever to strengthen the management base. Especially,
the Medium Term Management Plan calls for enhance measures for return to common shareholders
and reduction of preferred stock and cross-shareholdings as priority issues.

15

Targets for management indicators and Main business management items
Main targets for
management
indicators

profitability

As of the end of
March 2023

Plans
(As of the end of March 2025)

Achievement ratio¥6.4 billion yen¥6.7 billion yen

95.5%

Core OHR

70.02%

69%

98.5%

ROE

4.12%

4%

103.3%

Equity Ratio

8.67%

Mid- 8% range

—

30%

87.2%

As of the end of
March 2023

Plans
(As of the end of March 2025)

Achievement ratio＋308+ 1,000 compared with March
31, 2022

30.8%

Profitefficiency

soundness

Ratio of issued
34.39%
preferred stock*All of the above items are figures on a non-consolidated basis.

Increase
corporate
partners

Corporate
indicators

Individual
indicators

Efficiency
indicators

Human
resourcesrelated

in

core
business

Number of cases sharing
five major needs*1
Number of management
improvement
plans
formulated
Increaseincorecustomers
Increase in balance ofassets under custody
Number of cases inwhich we were able torespondtotheinheritance needs
Reduction in administrative
work timethrough
digitalization
Reductioninadministrative
operations at branches
Number of those who
passed the Information
Technology
Passport
Examination
Number of those who
passed the second grade of
the Official Business Skills
Test in Bookkeeping
Number of those who are
the first grade Certified
Skilled Worker of Financial
Planning

Number of workshops
forcross-industrial
exchange held
Ratio
offemaleofficers*2

3,405 cases
71 cases+127+ ¥14.2 billion

Cumulative number of sharing
cases for three years: 10,000
cases
Cumulative
numberofformulated plans for three
years: 250 cases+ 1,400 compared with March
31, 2022+ ¥45.0 billion compared with
March 31, 2022

34.0%
28.4%
9.0%
31.5%

897 cases

Cumulative number of cases inwhich we were able to respondfor three years: 1,000 cases

89.7%(7) thousand hours(133)
thousandhours
compared with FY2021

5.5%

(18)%

(50)%
compared
FY2019*3

36.0%

305

550

55.4%

135

200

67.5%

108

110

98.1%

12 times

Cumulative
numberofworkshops held for three
years: 36 times

33.3%

35.1%

30%

117.0%

with*1 business succession, labor shortages, management streamlining, DX, decarbonization*2 Calculated by dividing the number of female officers by the number of officers*3 The comparison target is FY 2019 in order to exclude the period when a state of emergency was declared
and there were restrictions on going out and moving.
16

Our Sustainability Initiatives● Policies and guidelines for our sustainability initiatives
The Bank promotes sustainability management throughout the Group and has established policies andguidelines regarding sustainability initiatives in order to realize a sustainable society.
Please refer to our website (Japanese) for details of our policies and guidelines for our sustainability
initiatives.
💻 https://www.chibakogyo-bank.co.jp/csr/policies/

Chart
Corporate Philosophy“Moving Forward with the Region, with Heartfelt Kindness Toward Customers.”
Basic Policy
Regarding Corporate Governance

Human Rights Policy

Basic Policies Regarding
the Handling of Sustainability

Chiba Kogyo Bank Group’s
Code of Conduct

Environmental Policy

Procurement Policy

Policies for
Investments and Loansten guiding
principles
Establishing Trust

Diversity

Providing High-Quality
Financial Services

Human Resource
Development

Thorough Compliance

Environment Issues

Communication
with Society

Contribution to
Regional Community

Respecting
Human Rights

Opposition to
Antisocial Forces

・Chiba Kogyo Bank Group’s Code of Conduct
We seek to strengthen our structure for leading the region in terms of taking on environmental concerns,
human rights issues and other such social challenges based on our corporate philosophy. We accordingly list
ten guiding principles for ensuring that all officers and employees of the Group are able to fulfill their
responsibilities toward achieving a sustainable society.
・Environmental Policy
We promote efforts for helping to address environmental challenges and accordingly take initiative together
with our regional communities toward building a sustainable environment and society.
・Human Rights Policy
We seek to serve as a member of the regional economy in aiming to work with our stakeholders in creatinga society that upholds human rights while also promoting efforts for helping to address social challenges andestablishing a corporate culture characterized by an abundance of respect for human rights.
・Procurement Policy
We aim to help achieve a sustainable society while also increasing our corporate value by promoting
responsible procurement practices and procurement optimization, based on the Group’s Environmental
Policy and its Human Rights Policy. In addition, we will work together with our suppliers with respect toimplementing socially and environmentally sound procurement practices throughout the supply chain.
・Policies for Investments and Loans
We have established the “Policies for Investments and Loans” to clarify our attitudes to responsible
investment and lending. In addition, we have the policies for investment and loans on specific industries andsectors that are considered to have a significant impact on the local environment and society.

17

● Chiba Kogyo Bank Sustainability Statement
We will work to realize management that takes into account value creation for a variety of stakeholders andto increase corporate value through the continuous and stable growth of the Bank by tackling “Sustainability
Key Issues” from a long-term perspective, in order to put the basic values of our corporate philosophy into
practice. As a result, we will contribute to the sustainable development and prosperity of the region’s
economy, industry, and society.
● Sustainability Promotion Framework
・Promotion Framework and Operation
We have established the Sustainability Promotion Committee upon having restructured the former
Sustainability Promotion Committee.
We have assigned more relevant divisions than before to the task of addressing all aspects of sustainability
by establishing this committee, and will accordingly engage in planning and implementation of measuressubject to deliberations of the committee.

Board of Directors
Supervision of matters to be reported by the Sustainability Promotion Committee
Resolutions on important matters pertaining to sustainability
ReportPresent / Report as necessary

Supervise

Sustainability Promotion
Committee

Secretariat:
Management Planning
DivisionManagement Liaison Committee

Sustainability promotion and confirmation of progress thereof
Deliberations and decisions on matters pertaining to sustainability
promotion
ReportDeliberations on matters related to measurespresented by respective divisions

PromotePresent / Apply

Relevant divisions at headquarters
Planning and promotion of measures subject to deliberations of the Sustainability
Promotion Committee
Summarization of progress achieved with respect to sustainability initiatives andreporting to the Sustainability Promotion Committee
Personnel

Customer Service
Promotion

Sales Planning

CreditSupervision

Risk Management

GeneralAdministration

Observer:Auditing

Summarize

Branches
Implementation of and feedback on sustainability promotion initiatives

18

Our Sustainability Initiatives● Approach to Setting the Sustainability Key Issues
Based on the concept that as a regional financial institution, realizing sustainability for Chiba Prefecture willlead to the growth and development of the Bank and our stakeholders, we have whittled down the key issues
by identifying which of the various issues facing the prefecture are priority issues for which we can leverage
the Bank’s strengths to contribute to a solution, so that we can make a further leap toward achieving a
glistening Chiba that future generations can be proud of.
・the Sustainability Key Issues

Key Issue

1

Key Issue

2

Key Issue

3

Revitalizing industry and creating appeal for Chiba
We will work to revitalize the local economy andcreate new appeal for Chiba through initiatives suchas developing unique products that use local
resources and nurturing local industries.

Cultivating the human resources that will be
responsible for the future of Chiba
We will work to cultivate human resources who can
support the growth of the region, as well as to improve
work satisfaction and economic conditions for eachindividual.

Realizing a prosperous Chiba where people can livewith peace of mind
We will engage in the development of a prosperous
region where people can live with peace of mind throughinitiatives that prepare the region for disasters and forprevention of crimes, the establishment of healthcare
systems, and initiatives that reduce impact on theenvironment.

・Key Performance Indicators
As of the end of
March 2023

EconomySociety

Environment

the Amount of ESG
Investment and
Finance/
Sustainable Finance
1. Ratio of Female
Officers
2. Number ofParticipants in
Financial Education
Reduction in CO2EmissionsTargets for FY2024

Targets for FY2030

141.6 billions of yen

More than150 billions of yen

500 billions of yen

1. 35.1%
2. 1,216 people

1. More than 30%
2. Total 3,000 people

1. More than 35%
2. Total 10,000 people

Reducing by (36.93)%
compared with FY2013

Reducing by (35)%compared with FY2013

Reducing by (46)%compared with FY2013* The Bank has revised its targets upward on August 9, 2023.
19

● Annual initiatives rooted in the community
Clean-Up Activities
Bank employees, staff and their family members
participate in clean-up activities on the sidewalkfrom the head office parking lot to the Chiba Port
Tower and inside the Chiba-port park.

Sponsoring the “Chiba Aqua-Line Marathon”
We support the Chiba Aqua-Line Marathon as an
official sponsor and dispatch bank employees asvolunteer staff to prepare drinks and light meals forthe athletes.

Chiba Kogin Cosmos Concert
We hold a mini concert by the Chiba Prefectural
Chiba Girl’s High School Orchestra.

Blood Donation Drive Campaign
As a Japanese Red Cross Society supporter, we holda blood donation drive campaign at the head office
twice in a year.

Bicycle Reflectors Donation
We donate bicycle reflectors with a wish ofprotection against traffic accidents to new juniorhigh school students in Chiba Prefecture, and havedonated a total of 466,400 such reflectors so far,over the last 29 years.

Holding a Chiba Kogyo Bank Cosmos Theater
Performance
We sponsor the “Parent and Child Opera Viewing
Debut Project staged by the Chiba Prefectural
Cultural Promotion Foundation as a Chiba Kogyo
Bank Cosmos Theater Performance.
Chiba Kogin Tomoshibi no Kai
A donation activity that contributes to the welfareof the local community based on the funds
collected from employees on the payday of eachmonth.
Economics Koshien
We hold Chiba Tournament of the National HighSchool Financial and Economic Quiz Championship"Economics Koshien", which provide opportunities
for high school students who will lead the next
generation to learn about finance and economics
while having fun.
20

Our Sustainability Initiatives

Key Issue

1

Revitalizing industry and creating appeal for Chiba◆ Start of Handling of Positive Impact Finance
The Bank has begun offering Positive Impact Financing(PIF). PIF is a financing method that comprehensively
analyze the impact (positive and negative) of corporate activities on either environmental, social or economic
aspects and supports efforts to improve identified positive impacts and reduce identified negative impacts.
We developed the product by properly evaluating the sustainability management of our customers who are
actively working on the SDGs, while at the same time receiving advice from Japan Credit Rating Agency, Ltd.(JCR),
at third-party evaluation agency, on a series of steps from product regulations, evaluating process, to items to be
included in the evaluation report.
As the first project, we provided PIF to Wing co, ltd. Wing co, ltd. has contributed to SDGs through partnershiporiented corporate activities, including the use of domestic timber and the development of its business incooperation with other companies in the same and different industries, utilizing the 2×4 business know-how it
has cultivated over many years.

◆ Launch the Website "Chibatoku!"
As one of the services to create connections among
stakeholders, the Bank has launched the website"Chibatoku!" which provides information on products,
services, and coupons of our business partners.
“Chibatoku!” is free of charge, and is intended to help
solve the business challenges of our business partners
and increase their corporate value through PR, sales
expansion, new customer acquisition, and othermeans.
The coupons can be used by anyone. Through thecoupons we will provide an opportunity for local
residents and visitors to Chiba Prefecture to learn more
about the products and services of our business
partners and to obtain discounts and special offers.
A feature of “Chibatoku!” is that it includes
recommendations by our sales staff in order to further
convey the attractiveness of our business partners’
products and services.
Click below for access to “Chibatoku!” (Japanese)💻 https://chibatoku.chibakogyobank.com

21◆ The Chiba SDGs Suishin(Promotion) Network Receives Award from Minister
The Chiba SDGs Suishin (Promotion) Network’s initiative has
been awarded the second “Regional Revitalization SDGs
Financial Award” sponsored by the Cabinet Office of theGovernment of Japan. The Cabinet Office established the“Regional Revitalization SDGs Financial Awards”, commended
by the Minister of State for Regional Revitalization, with thegoal of promoting efforts to support local businesses incollaboration with local governments and regional financial
institutions toward the realization of sustainable town
development.
The Bank has participated in the Chiba SDGs Suishin (Promotion) Network. This network has been joinedby Chiba Prefecture and 11 organizations and companies including the Bank, and is designed to support
activities for solution of economic, social and environmental issues faced by the area and contribute tosustainable development of the local economy through close collaboration and cooperation toward thepromotion of SDGs within Chiba Prefecture.

◆ Providing CO2 Emissions Visualization and Reduction Solution
As part of our efforts towards decarbonization, the Bank and our group company, Chiba Kogin Computer
Soft Co., Ltd. have begun collaborating with Fuji Electric IT Solutions Co., Ltd.
We provide CO2 emissions visualization and reduction solutions to solve the decarbonization challenges
faced by many small and medium-sized business owners, and support the decarbonization managementof our business partners.
In addition, our group, in order to take its own lead in regional decarbonaization, collaborated with Fuji
Electric IT Solutions Co., Ltd. and Zeroboard Inc.
We decided to introduce “zeroboard” a cloud service for calculating CO2 emissions to our group, and has
begun measurement of CO2 emissions.

◆ “Chiba no Ichiban Shitteta? ” Picture Book for Children
We created a picture book for children and their parents with the aim of widely spreading the charms of
Chiba, which the next generation can be proud of. In the picture book, our mascot character "Chiba Corgi"serves as a guide and introduces local specialties in Chiba such as peanuts, Japanese pears and soy sauce.
We donated the picture books to local nursery schools, kindergartens, hospitals with pediatricdepartments, and etc. All the illustrations in the picture book were newly drawn by one of our employee
who is the creator of Chiba Corgi.

22

Our Sustainability Initiatives

Key Issue

2

Cultivating the human resources that will be responsible
for the future of Chiba◆ Start of Providing Online Learning Service for Employees of Business Partner Companies
We have started providing an online learning service for employees of our business partners for free. The
purpose of this service is to help improve corporate value and solve problems such as insufficient educationand training of employees and the inability to develop successors and middle managers, which areproblems of small and medium-sized enterprises. We have prepared a wide range of approximately 1,450
teaching video materials, such as business manners and business skills for new employees, management
strategies and management skills for managers. You can freely select and watch videos from categories
according to age and position.
■ Comment from our business partner
This service has a large number of categories,
and the videos last only a few minutes, so it iseasy to watch. We also find it attractive to beable to review with a confirmation test. The
lecturer's way of speaking is easy to hear, so we
can watch the videos without getting bored in
the middle.
we expect more contents to be added in the
future.
Dainichi Corporation■ Comment from our business partner
Inviting lecturers to conduct in-house training
each time will incur a lot of costs and time
constraints, but this service is free and convenient
for employees to use at their own timing.
Currently, we use it on a trial basis in somedepartments within the company. We’d like todevelop in-house systems encouraging active useof the service, and eventually make it available toall employees.
Yamaichi Kousan Co.,Ltd.

◆ Basic agreement on Cooperation Concluded with Chiba University of Commerce
The Bank has concluded a basic agreement oncooperation with Chiba University of Commerce(President: Sachihiko Harashina). This agreement
aims to contribute to the local community, topromote academic and cultural development, toform a vibrant regional society and economy, and toadvance educational and research activities.
In addition, the Bank provided special lectures (totalof 13 times) to acquire practical financial knowledge.
Our employees and the managers of our business
partners served as lecturers to give lectures on thesocial responsibility of regional financial institutions,relationship with the regional economy, and efforts
to contribute to the region, using specific examples.
■ Comment from a student
I took the course because I thought it would be useful for my future life, with a view to working in thefinancial industry. Through the lectures, I learned what was required in the financial industry, and I’d liketo take on the challenge of obtaining qualifications related to finance. The bankers gave us a lecture politely
and clearly. The atmosphere among the participants was good and the group work was lively, so I felt that
I could enjoy learning about the financial industry in earnest.
(3rd Year, Faculty of Humanities and Social Sciences)23◆ Holding Financial Education Classes for Local Junior High and High School Students
In order to spread financial literacy education tojunior high and high school students who will lead thenext generation, we held financial education classes
for local junior high and high school students together
with SMBC Consumer Finance Co., Ltd.
A lecture on the theme of asset management wasprovided by employees selected through the CKB Job
Matching system, an internal system in which
employees register their skills and the Bank introducesthem to jobs that allow them to make the most of theirskills. Students learned about the importance of asset
formation and diversified investment through aninvestment experience game and an explanation of
how investment trusts work.

◆ Donation for the Scholarship System Established by Chiba Prefecture
The Bank donated 3 million yen to help pay for the scholarship system established by Chiba Prefecture. The
purpose of this scholarship system is to secure learning opportunities for children who have been forced to giveup their studies due to financial reasons. In Chiba Prefecture, Chiba Council of Social Welfare, which is in chargeof system administration, established a fund for this system from the perspective that whole society needs tosupport the realization of equal educational opportunities. They are planning to widely solicit donations for the
benefit funds from citizens and companies in the prefecture.

◆ Establishment of New Training Facility “Makuhari Gakumonjo”
We established a new training facility, Makuhari Gakumonjo, and a multi-purpose space on the site of theformer Makuhari Techno Garden branch. Taking advantage of good transportation access and the location
where various companies are concentrated, we will utilize it as a base for employee training, seminars forcustomers, exchanges between different industries, recruitment activities, and etc. The layout and design ofthe training facility is based on the concept of "harmony and circle of people". The innovative design goesbeyond the framework of bank facilities and is designed so that users can find it challenging.
As the first event after the establishment of "Makuhari Gakumonjo", we held a "cross-industry exchange
workshop". We invited the employees of our business partners to a training session for our employees, andcreated opportunities to increase their personal connections outside the company and learn on the theme oflogical thinking.

24

Our Sustainability Initiatives

Key Issue

3

Realizing a prosperous Chiba where people can livewith peace of mind

◆ The Second Phase of “Chiba Kogin Forest” Has Started
Since 2014, the Bank has supported the "Corporation
Forest" project promoted by Chiba Prefecture.
As the first phase, we had proceeded the “Chiba
Kogin Forest”, a forest maintenance activity including
planting 5,000 trees and clearing underbrush, aiming
to regenerate 1.0ha of prefectural forest in Sosa City
which was damaged by pine weevils and the tsunami
from the Great East Japan Earthquake.
The activity cite has been moved to Sammu City, andthe second phase of “Chiba Kogin Forest” has started.
We will plant 4,500 trees over 5 years, with the aim ofregenerating 0.9ha of protected forests.

◆ Introduction of the Ultra-Compact Battery Electric Vehicle "C+pod"
We have introduced the ultra-compact battery
electric vehicle "C+pod" as a commercial vehicle for
our Otakanomori and Edogawadai branches. It is anenvironmentally-friendly two-seater BEV, and thepower stored in the battery and the charging
equipment can be used as an emergency power
supply in the event of a disaster.
In order to prevent global warming, the Bank has
introduced electric vehicles and hydrogen vehicles forcommercial use, which are equipped with excellent
environmental performance that does not emit
carbon dioxide or substances of environmental
concern while driving.

◆ Investing in Japan Green Investment Corp. for Carbon Neutrality
Japan Green Investment Corp. for Carbon Neutrality(JICN) is a limited company operating a fundcapitalized by fiscal investment and finance from the Japanese government and investments from theprivate sector. It supplies risk money to projects which contribute to carbon neutrality and advances thecreation of opportunities to divert large sums of private ESG funds to investment in carbon neutrality.
We have invested 50 million yen in JICN, agreeing with its concept of supporting the enthusiastic efforts
of private companies toward carbon neutrality.

25◆ Promotion of Sports in the Community
Together with local people, we support sports teams based in Chiba Prefecture and we will contribute to
the vitalization and development of the region by promoting sports in the prefecture.
■ Chiba Lotte Marines (Baseball)Since 1992, when the Chiba Lotte Marines moved theirhome base to Chiba, The Bank has been supporting the
Chiba Lotte Marines for many years. We have used the
Chiba Lotte Marines' mascot character in the design ofpassbooks and cash cards, as well as displaying
sponsorship advertising signs on the right stand side of thestadium.
In addition, we hold the title match "Chiba Kogin Day"and "Chiba Kogin Match Day" every year at the home
games of the Chiba Lotte Marines. On the day of the game,
together with the official fan club "TEAM26", we carry out
initiatives that fans of the team and visitors can enjoy, suchas jointly setting up an original booth and holding a fair.
■ Chiba Jets Funabashi (Basketball)
An amount of the deposit balance of “Go! Chiba Jets!
Supporter Time Deposits” that we handled up every year,
which was calculated using a rate based on theperformance record of Chiba Jets Funabashi, is donated tothe team. The donation is being used to help the teamcarry out activities that contribute to the region.
The Bank co-sponsored "Mirai ni Tsunagu BOX (Box thatis connected to the future)" project. This project aimed topromote recycling plastic bottles at the event "Chiba Jets
Festa", held by Chiba Jets Funabashi in March 2022. On the
day of the event, we set up a recycling bin at the event
venue, so that the audiences who came and watch thegame would put plastic bottles in it. We collected andrecycled plastic bottles and caps into eco-friendly
stationary, and we distributed them to local children.
■ Briobecca Urayasu (Soccer)
The Bank supported the introduction of "J-Coin Pay*," a smartphone
payment service app using a two-dimensional code, to the soccer club "Brio
Becca Urayasu", whose hometown is Urayasu City, Chiba Prefecture.
When selling official merchandises, and etc., smooth accounting is now
possible without the need for change. It also allows the team to collect
cashless donations.
*J-Coin Pay is a smartphone payment service app provided by Mizuho Bank, Ltd.
■ Orca Kamogawa FC (Soccer)
Orca Kamogawa FC is a women's soccer team whose hometown is
Kamogawa City, and the Minamiboso region, Chiba Prefecture.
The Bank has sponsored the team since 2016, based on the belief that thesuccess of Orca Kamogawa FC will lead to the revitalization of the
Minamiboso region.
Since then, we have handled the “Orca Kamogawa FC Supporter Time
Deposit” and support the team together with the fans.

26

Initiatives for TCFD Recommendations
The Bank has endorsed the recommendations of the Task Force on
Climate-Related Financial Disclosures (TCFD) in September 2022. We
will appropriately respond to climate change, as enhancing thedisclosure of information and improving the system based on thedisclosure framework of the TCFD recommendations.

◆ GovernanceHaving established the Environmental Policy for addressing climate change and other environmental concerns,
and the Human Rights Policy for addressing social challenges, the Bank regards sustainability as an importantmatter of its management strategy in terms of contributing to sustainable development and prosperity of theregional economy, industry, and society.
The Sustainability Promotion Committee, chaired by the President, deliberates on and makes decisions
regarding sustainability initiatives, and periodically reports on matters such as the status of such initiatives tothe Board of Directors no less than once per year. We have also established basic policies regarding sustainability
initiatives, particularly with respect to promotion methods. This makes it possible for us to develop a framework
for enabling the Board of Directors to appropriately supervise initiatives to address climate change.
Matters presented and reported to the Board of Directors (FY2022)
1. Endorsement and disclosure of the TCFD recommendations
Reviewed content of disclosure made based on four TCFD categories
2. Establishment of the Sustainability Promotion Committee
Reorganized from the previous Sustainability Promotion Committee format to create a better developedorganizational structure
3. Formulation of sustainability-related regulations, etc.
Formulated the Environmental Policy, Human Rights Policy, and Procurement Policy, and revised regulations
related to code of conduct, etc.
4. Status of sustainability initiatives
Reviewed content of TCFD disclosure (scenario analysis), implemented initiatives on sustainable financepromotion methods and financial literacy education, etc.

◆ Strategy
・ Awareness of risks and opportunities
The Bank deems that there are both risks(transition risks/physical risks) and opportunities associated with its
efforts to address climate change in seeking to help achieve a sustainable society, and accordingly recognizes
the following risks and opportunities based on three time horizons: 5-year short term (S) , 10-year medium term(M), and 30-year long term (L).
Classification

Transition risksType

Description

Time Horizon

Governmental policy
and regulatory

Escalating credit costs associated with effects on customer business derived from
implementation of more stringent government policy and regulation regarding
climate change

M-L

Difficulties raising funds or increasing fundraising costs due to market changes
attributable to climate change

M-L

Impairment of existing assets, etc. and deterioration of earnings due tointroduction of new technologies, etc. and changes in industrial structureassociated with the transition to a decarbonized society

M-L

Deteriorating reputation due to ongoing investment and lending to carbonemitting sectors

S-L

Escalating credit costs attributable to effects of deteriorating financial
performance and impairment of collateral value due to stagnation of customer
business associated with wind- and water-related disaster due to typhoon or
torrential rainfall

S-L

Increasing administrative costs due to effects on business continuity associatedwith impairment of the Bank’s assets caused by extreme weather events, etc.

S-L

Occurrence of loss associated with damage to customer and Bank businesslocations due to rising sea levels

L

Products and services

Increasing volume of consultancy and financing support involving sustainability
initiatives related to climate change

S-L

Resource efficiency

Decreasing business costs by reducing resource and energy consumption andusing renewable energy

S-L

Technology
and market

Reputational

Physical risks

Acute
Chronic

Opportunities

27

・ Risk【Implementation of Scenario Analysis】
In FY2022, the Bank conducted scenario analysis that entailed analyzing risks under certain scenarios pursuant
to the TCFD recommendations, with respect to heightened transition risk posed by revaluation of GHG-intensive
financial assets accompanying transition to a low-carbon economy, and with respect to heightened physical risk
posed by effects of flood risk due to climate change.

【Transition risks】
Upon having selected the energy sector characterized by relatively high GHG emissions for analysis, the Bank
identified individual energy-related enterprises (enterprises associated with electric power, natural gas, coal,and petroleum) and steel-related enterprises.
The risk assessment entailed assessing risk materiality and business impact. Analysis of individual companies
was performed with respect to large companies and publicly traded companies(Bottom-up approach), andestimates were extrapolated with respect to entities for which access to extensive information such as thatpertaining to business plans and financial affairs was otherwise unavailable (Top-down approach).

Item
Risk event

Scenarios

Analytical method
Target of analysis
Analysis period
Analysis results

Description• Increased costs due to introduction of carbon tax• Increase in capital expenditures and R&D expenses associated with the transition to a decarbonized society• Effect on market associated with conversion to renewable energy
Among the NGFS (Network for Greening the Financial System) scenarios, Net Zero 2050, less than 2°C scenario•Net Zero 2050：limits global warming to 1.5°C through stringent climate policies and innovation, reaching global
net zero CO2 emissions around 2050
•Below 2℃：gradually increases the stringency of climate policies, limiting global warming to below 2°C.
•Bottom-up approach：Estimates made of financial position through to 2050 on an individual company basis•Top-down approach： Estimates made based on averages of profit margins and cost ratios derived from results ofindividual company analysis
Energy-related enterprises (enterprises associated with electric power, natural gas, coal, and petroleum) and steelrelated enterprises
Through to 2050 with December 31, 2022 as the baseline
Credit cost: ¥0.3 billion to ¥1.4 billion cumulative【Physical risks】
・In relation to locations of business partners and collateral, the Bank performed analysis regarding impact onborrower classification (borrower classification impact) and impact on preservation of such assets (preservation
impact) at the time of a calamity, taking into account multiple probabilities of a flood occurring in a given year
in conjunction with hazard maps (incorporating assumed maximum and estimated scales).
・Calculation of borrower classification impact entailed estimating monetary damage to buildings and tangible
fixed assets owned by an enterprise (amount of direct damage) and estimating monetary damage associatedwith business suspension (amount of indirect damage). Then, an amount of increase in provisions was calculated
upon having calculated the impact on the financial position of the enterprise assigning a borrower classification.
Calculation of preservation impact entailed calculating an amount of increase in provisions attributable tocollateral impairment of buildings, etc.
・Amounts of increase in provisions were calculated enlisting multiple scenarios, taking into account probabilitiesof the calculated amounts of provision increase occurring by the year 2050 and increases in flood frequency
attributable to climate change.
・In addition, estimates were similarly made with respect to impairment of fixed assets caused by flooding ofBank head office and branches.

Item
Risk event
Scenarios

Analytical method

Target of analysis
Analysis period
Analysis results

Description
Flooding① Financial deterioration due to interruption of the client’s business or direct damage to business locations② Damage to collateral ③ Impairment of Bank head office and branch assets
RCP (Representative Concentration Pathway) scenarios by IPCC (Intergovernmental Panel on Climate Change)(RCP2.6: 2°C scenario, RCP8.5: 4°C scenario)• Calculate amount of increase in credit costs taking into account amount of increase in flood probability and flood
frequency up through 2050 as estimated based on respective scenarios, upon having enlisted hazard map data
(incorporating assumed maximum and estimated scales) to calculate impact on financial position and impact oncollateral (preservation) based on amount of direct damage and amount of indirect damage incurred by a business
partner upon occurrence of flood• Calculate amount of building damage incurred by Bank head office and branches
Fixed assets of domestic corporations and individual business owners with loans, as well as those of Bank head officeand branches
Through to 2050 with December 31, 2022 as the baseline
Credit cost: ¥0.3 billion to ¥0.5 billion,
Amount of damage incurred by Bank head office and branches : maximum ¥0.1 billion

28

Initiatives for TCFD Recommendations【Analysis results】
Findings of scenario analysis indicate a limited impact on the overall portfolio based on the scope of analysis
and the assumptions of the scenarios. Accordingly, credit costs range from a cumulative total of ¥0.3 billion to¥1.4 billion with respect to transition risk, ¥0.3 billion to ¥0.5 billion with respect to physical risk, and maximum
impairment of Bank head office and branch assets of ¥0.1 billion. We will continue to make improvements inpart by increasing the number sectors subject to scenario analysis.

【Carbon-related assets】
Carbon-related assets*2 account for 31.79% of the Bank’s credit balance*1.
*1 The credit balance is the total of loans and bills discounted, acceptances and guarantees, foreign exchange,
and bank-guaranteed private placement bonds as of March 31, 2023. The sector classification is based on
industry classification listings prepared by the Bank of Japan, as determined by the bank (excluding solar
power generation projects that serve as renewable energy projects).
*2 Carbon-related assets: The Bank defines carbon-related assets across four separate sectors, taking into
account partial revision of the TCFD recommendations of October 2021.

Proportions of the Bank’s credit balance in each of the four sectors are as follows.
Energytransportation

Materials and Buildings

0.84％

2.95％

26.15％

Agriculture, Food, andForest Products
1.85％

・ Opportunities
The bank actively engages in initiatives for reducing environmental impact and achieving decarbonization bothregionally and among its customers, thereby enabling the Bank to help bring about a sustainable society andincrease its corporate value, while contributing to resolution of environmental and social challenges.
Furthermore, the Bank is committed to realizing a decarbonized society by providing financing aligned withcustomer demand for funds and by offering consulting services and other such solutions associated with thetransition to a decarbonized society. The Bank seeks to create even more business opportunities going forward
by enhancing its services that support decarbonization, including those that assist customers in their efforts to
reduce greenhouse gas emissions and increase energy efficiency.

【Our Sustainability Support Solution】
Customer Issues

Our Solution Lineup

Commencing effective initiatives
towards sustainability

Providing sustainable finance• Positive impact finance

Identifying
decarbonization
priorities, setting targets, and etc.

Visualizing customer greenhouse gas
emissions, setting decarbonization
targets• Support for calculating GHG
emissions• Support for Science Based Targets
initiative (SBTi) certification

Commencing
associated with SDGs

Supporting initiatives related to the
SDGs• Promotion of Chiba SDGs Partner
registration

initiatives◆ Risk Management
We recognize that there are various risks such as those involving climate change associated with sustainable
development and prosperity of the regional economy, industry, and society. Moreover, we acknowledge thatrisks arising from climate change significantly affect not only on the global environment and regional economy
but also business strategy and financial planning of the entire Group. As such, we will establish an integrated
risk management framework to address such risks in part by enlisting credit risk management and operationalrisk management, while also assessing and analyzing effects of such risk.
We have policies for investment and loans on specific industries and sectors that are considered to have anegative impact on the local environment and society. Through responsible investment and lending based onthese policies, we will contribute to the realization of a sustainable society together with customers who are
working to solve environmental and social issues.
29◆ Indicators and Targets
・ESG Investment and Finance/Sustainable Finance
The Bank defines “ESG investment and finance/sustainable finance” as financing that aims to contribute toregional environmental conservation and the sustainable development and prosperity of the economy, industry,and society and has strengthened our initiatives.
［ Main ESG investment and finance/sustainable finance products ］•Loan products and bonds (purchased) provided in compliance with international principle such as Green Loan
Principles and Sustainability Linked Loan Principles•Loan products to support customers’ efforts to achieve SDGs
•Underwriting of SDGs-related private placement bonds•Financing and other services that contribute to sustainable development and prosperity of the region, in partby reducing environmental impact, promoting community revitalization, and developing human resources*They include other products than the above.
Target for the amount of ESG investment and finance/sustainable finance and its results are as follows.
the Amount of ESG investment andfinance/Sustainable FinanceTargets for FY2024

More than 150 billions of yen

Targets for FY2030

500 billions of yen

Targets

As of the end of March 2023
141.6 billions of yen* The Bank has revised its targets upward on August 9, 2023.

・ CO2 emissions reduction results
We aim to reduce our CO2 emissions by 35% by fiscal 2024 and by 46% by fiscal 2030 compared to fiscal 2013.
The results are as follows.
* The Bank has revised its targets upward on August 9, 2023.

CO2 emissions and rate of reduction(Rate of reduction)(FY)(Rate of reduction compared to FY2013)◆ Participation in and endorsement of domestic and international initiatives
We participate in and endorse a variety of domestic and international initiatives to contribute to the realizationof a sustainable society.

チーバくん

30

ちば SDGs パートナー 93 号

Corporate Governance● Basic views
The Bank’s corporate governance framework enables us to make decisions in a manner that is transparent,
fair, expeditious, and resolute, upon having considered our shareholders, customers, officers and employees,
community members and other stakeholders.
We regard the matter of strengthening and enhancing the Bank’s corporate governance practices as one of
our key managerial challenges, in order to put the basic values of our corporate philosophy into practice withrespect to “Moving Forward with the Region, with Heartfelt Kindness Toward Customers.”

Basic policy regarding corporate governance (Japanese)💻 https://www.chibakogyo-bank.co.jp/company/pdf/governance_03.pdf● Major Initiatives for Improving Corporate Governance2014

・Abolition of retirement benefits for directors (and other officers),
Introduction of share remuneration-type stock options

2015

・Formulation of the Basic Policy Regarding Corporate Governance,
Appointment of one Outside Director

2016

・Establishment of the Governance Committee, Increase of the number of Outside Directors by one
・Start of evaluations on the efficiency of the Board of Directors through a self-assessment method
using anonymous questionnaires

2018

・Establishment of the Disclosure Policy

2019・Assumption of office by Chairman, Increase of the number of Outside Directors by one

2022

・Establishment of the Nomination and Remuneration Advisory Committee● Corporate Governance System
・Organizational form：A Company with an Audit & Supervisory Board
・Advisory body to the Board of Directors：the Nomination and Remuneration Advisory Committee,
Compliance Committee

Board of Directors

Audit & Supervisory Board

Nomination andRemuneration Advisory
Committee

8

4

5

3

2

3

Outside Audit & Supervisory
Board members

Outside Directors

Outside Directors

31Board of Directors

Number of meetings in FY2022 ： 17 times
It is management’s highest decision-making body and supervisory body which determines management
policies and other matters, receives reports on the status of business execution, and supervises such inaccordance with rules such as the Board of Directors rules. The Board of Directors consists of eight
Directors of which three are appointed as Outside Directors.

Management Liaison Committee

Number of meetings in FY2022 ： 57 times
The Management Liaison Committee is set up as a subordinate organization to the Board of Directors. By
partially assigning the Board of Directors authority to the committee, the Bank pursues to improve
management efficiency and speed up business execution.

Nomination and Remuneration Advisory Committee Number of meetings in FY2022 ： 6 times
As for the Nomination and Remuneration Advisory Committee, of which a majority of members are
independent outside Directors, a structure that enables the committee to appropriately engage in andprovide advice from a fair and objective perspective on matters such as the appointment and dismissal of
executives such as Directors and Corporate Auditors and matters related to remuneration has been
established. By developing this structure, the Bank strives to improve its effectiveness of the Board of
Directors, and consequently achieve sustainable growth and increase medium- to long-term corporate
value of the Bank. Members of this committee comprise three independent outside Directors,
Representative Director and President (CEO) and Representative Director and Vice President (COO), to givea total of five people, and it is chaired by an independent outside Director.

Compliance Committee

Number of meetings in FY2022 ： 7 times
Based on recognition of the highly public nature and heavy social responsibilities of banks, we havepositioned compliance as a fundamental principle of management. We have established the Compliance
Committee and strive to take a Bank-wide approach to compliance and to determine any problem points.

Audit & Supervisory Board

Number of meetings in FY2022 ： 14 times
The Audit & Supervisory Board consists of four Audit & Supervisory Board members of which two are appointed
as Outside Audit & Supervisory Board members. Audit & Supervisory Board members conduct audits of matterssuch as the status of development and operation of internal control systems including the status of decisionmaking by Directors, compliance with laws and regulations, risk management and disclosure of corporate
information in accordance with the Auditing Standards.

Accounting Auditor
We have appointed Ernst & Young ShinNihon LLC as our accounting auditor and receive audits from a fairstandpoint. We are expanding and strengthening the auditing function of audits by the accounting auditor etc. inorder to verify the effectiveness and efficiency of operations, the reliability of financial statements, and theappropriateness and effectiveness of internal controls such as compliance with laws and regulations.

Corporate Governance System Structure
General Meeting of Shareholders
Accounting Auditor
Audit & Supervisory Board
Compliance Committee

Board of Directors
President (CEO)Management Liaison Committee
32

Nomination andRemuneration CommitteeCorporate Governance● Directors / Audit & Supervisory Board Members
Policies and procedures for nomination of candidates for Directors and Audit & Supervisory Board
Members, and appointment and dismissal of Directors and Audit & Supervisory Board Members
For candidates for Directors and Audit & Supervisory Board Members, we nominate persons who can be expected
to contribute to the Bank’s sustainable growth and improvement in corporate value based on the Bank’s corporate
philosophy and by comprehensively considering their past experience, insight, abilities and other factors.
Candidates for Directors are proposed by President based on reports from Nomination and Remuneration
Advisory Committee, nominated by the Board of Directors, and resolved at the General Meeting of Shareholders.
Candidates for Audit & Supervisory Board Members are proposed by President based on reports from Nomination
and Remuneration Advisory Committee, nominated by the Board of Directors, and resolved at the General
Meeting of Shareholders after approval from Audit & Supervisory Board is received.
If any Director or Audit & Supervisory Board Member performs an act that violates laws and regulations or public
policy during his or her term of office or brings significant damage to the Bank’s corporate value, or if it is deemedthat duties expected of him or her are not performed appropriately after his or her appointment, the Board of
Directors determines a proposal for his or her dismissal upon deliberation of Nomination and Remuneration
Advisory Committee, and the proposal is resolved at the General Meeting of Shareholders.

Reasons for the Appointments of Outside Directors and Outside Audit & Supervisory Board Members
Name(Appointment)

Hisako Toya
(June 2015)

Eiji Yamada(June 2017)

Reasons for the Appointments as Outside Directors
The Bank has appointed her considering that she is a suitable person with knowledge
and experience to serve as Outside Director of the Bank, based on her long-term
experience, performance, etc. in the area of regional administration in Chiba
Prefecture
The Bank has appointed him considering that he is a suitable person with knowledge
and experience to serve as Outside Director of the Bank, based on his experience andachievements in system development, etc. at Japan Information Processing Service
Co., Ltd.

Attendance atBoard of Directors
Meetings in FY 2022

17 of 17

15 of 17

He has ample business experience and is familiar with overall business operations as
he has engaged in corporate planning business, etc. since he joined The Fuji Bank,
Limited (current Mizuho Bank, Ltd.) in 1977. He also has ample experience incorporate management, having served as Vice-chairman of Mizuho ResearchInstitute Ltd. (current Mizuho Research & Technologies, Ltd.). The Bank has appointed
him considering that he is a suitable person with knowledge and experience to serve
as Outside Director of the Bank, based on his experience and achievements.

17 of 17

Name
(Appointment)

Reasons for the Appointments as
Outside Audit & Supervisory Board Members

Attendance at Boardof DirectorsMeetings(Audit & Supervisory
Board Meeting) in FY
2022

Takashi Kikugawa(June 2021)

The Bank has appointed him considering that he is a suitable person with knowledge
and experience to serve as Outside Audit & Supervisory Board Member of the Bank
from objective perspectives, based on his long-term experience at Meiji Yasuda Life
Insurance Company.

17 of 17
(14 of 14)

Tetsuro Sugiura(June 2019)

The Bank has appointed him considering that he is a suitable person with knowledge
and experience to serve as Outside Audit & Supervisory Board Member of the Bank
Tatsuya Toyoshima
13 of 14from objective perspectives, based on his long-term experience at Yasuda Fire &(June 2022)(10 of 10)
Marine Insurance Co., Ltd. (current Sompo Japan Insurance Inc.) and othercompanies.
*Since Tatsuya Toyoshima became Outside Audit & Supervisory Board Member of the Bank on June 24, 2022, the Boardof Directors Meeting has met 14 times and Audit & Supervisory Board Meeting has met 10 times.

33

Independence Criteria for Outside Officers
When appointing independent Outside Directors and independent Outside Audit & Supervisory Board
Members, the Bank effectively ensures that those appointed to serve as independent Outside Directors andindependent Outside Audit & Supervisory Board Members are independent from the Bank based on its
criteria for determining independence of outside officers.

Criteria for determining independence of outside officers (Japanese)💻 https://www.chibakogyo-bank.co.jp/company/pdf/governance_04.pdf

Views on balance, diversity and size of the Board of Directors
The Board of Directors is the highest decision-making body and supervisory body of the Bank’s management.
For Directors who constitute the Board of Directors, the Bank formulates a skills matrix for their knowledge,
experience and abilities based on the management strategies and management plan, and appoints them inview of the overall balance and diversity to ensure that its functions work effectively.
With regard to diversity, the Bank has also taken into account gender, etc., and one of its independent
Outside Directors is currently a female executive.

・ Skill Matrix of Directors and Audit & Supervisory Board Members

Shunichi Aoyagi

Director

Corporate
management/
business
administration〇〇〇

Hitoshi Umeda

Director〇〇〇

Ryuichi Matsumaru

Director〇〇〇

Yasumitsu Kanda

Director〇〇〇

Katsumi Shirai

Director〇

Hisako Toya

Director〇

Eiji Yamada

Director〇

Tetsuro Sugiura

Director

〇
〇

〇

〇

〇

Name

Shigeto Kato
Hitoshi Yokoyama
Takashi Kikugawa
Tatsuya Toyoshima

Position

Audit & Supervisory
Board Member
Audit & Supervisory
Board Member
Audit & Supervisory
Board Member
Audit & Supervisory
Board Member

Independence(outside officers)

Legal affairs/ risk
management

Accounting/ finance

〇

〇

〇

〇

〇

〇

〇

〇

〇

Sales promotion

Administration/
regional economy〇〇

Financing

Information/ digitaltechnology

Shunichi Aoyagi〇〇

Corporate
governance/sustainability〇

Hitoshi Umeda

〇

〇

〇

〇

〇

Ryuichi Matsumaru

〇

〇

〇

〇

Yasumitsu Kanda

〇

〇

〇

Name

〇

〇

Katsumi Shirai〇

Hisako Toya〇〇

Eiji Yamada
Tetsuro Sugiura

〇

〇

〇
〇

Shigeto Kato
Hitoshi Yokoyama

〇

〇

〇

Takashi Kikugawa〇

Tatsuya Toyoshima

〇

34

〇

Corporate Governance
System for supporting Outside Directors and Outside Audit & Supervisory Board Members
Employees from the General Secretariat and the Office of Audit & Supervisory Board Members provide
support for facilitating activities of the Outside Directors and Outside Audit & Supervisory Board Members.
Prior to holding meetings of the Board of Directors, agendas are provided to the Outside Directors andOutside Audit & Supervisory Board Members, and individual explanations are furnished to heads of theGeneral Secretariat and Office of Audit & Supervisory Board Members, and also to the Standing Audit &Supervisory Board Members. This enables the Bank to ensure adequate dissemination of information,accurate and fair business management, as well as rigorous execution of audits.

Policy for training of Directors and Audit & Supervisory Board Members
The Bank provides its newly appointed and other Directors and Audit & Supervisory Board Members with
sufficient quality and quantity of workshops, training, and other such learning opportunities as deemednecessary in order for them to gain and adequately update their knowledge, and it furthermore covers theassociated costs. The Bank provides its outside officers in particular with sufficient quality and quantity ofworkshops, training, and other such learning opportunities taking into consideration the Bank’s distinctive
operations, and it furthermore covers the associated costs.
The Board of Directors periodically confirms whether or not the aforementioned training opportunities arebeing provided to the Directors and Audit & Supervisory Board Members.

Evaluating the effectiveness of the Board of Directors
The Bank has evaluated the effectiveness its Board of Directors from the perspective of assessing the extent
to which the Bank’s Directors have been adequately fulfilling the roles of the Board of Directors as stipulatedparticularly in laws and regulations. Given that the evaluation consequently did not identify any events thatwould clearly serve as impediments to the process by which the Board of Directors fulfills its roles, we
accordingly deem that the effectiveness of the Bank’s Board of Directors has been ensured.

・Evaluation method(1) Questionnaires on matters that include operational status and deliberation content of the Board of
Directors were administered to Directors and Audit & Supervisory Board Members who are members of
the Board of Directors (hereinafter, the “FY3/23 Questionnaire”).
(2) The Nomination and Remuneration Advisory Committee analyzed and evaluated aggregated content of
the FY3/23 Questionnaire.
(3) Results of analysis and evaluation, and proposals from the Nomination and Remuneration Advisory
Committee on improving effectiveness of the Board of Directors were appropriately reported to theBoard of Directors.

・Initiatives for improving effectiveness of the Board of Directors implemented during the fiscal
year ended March 31, 2023

・Procedures for adjusting the duration of explanations of each agenda item were implemented to ensure
time for deliberations on important matters.
・Given the time consuming nature of explaining agenda items subject to extensive documentation amid a
scenario of time constraints imposed on deliberations, time for explanations was reduced by structuring
documents such that content deemed important for decision-making is to be presented separately fromsupplementary content.
・Initiatives were implemented to enhance the quality and comprehensiveness of deliberation content, inpart by arranging workshops on important agenda items as warranted.

・Further initiatives for improving effectiveness of the Board of Directors
・Going forward, we will continue taking action to improve quality of deliberations on agenda items thatare important for improving corporate value by arranging workshops as warranted and forums forexchanging opinions to serve as sessions for sharing information with Outside Directors.
・We will seek to further improve administrative aspects of the Board of Directors in part by ensuring
ample time for deliberations by taking action that includes preparing more clearly defined documentsthat outline the essential points of deliberations.

35

Officer remuneration
・Basic views
When it comes to officer remuneration, the Bank establishes remuneration structures that function by
providing Directors and Audit & Supervisory Board Members with incentive to perform their roles to thefullest extent to ensure that the Bank achieves management outcomes that help create value for various
stakeholders and that it increases its corporate value through sustained and consistent growth, pursuant to
its basic policies of management and underpinned by the Bank’s corporate philosophy. Meanwhile, the Bank
furthermore pays remuneration to its Directors and Audit & Supervisory Board Members as consideration for
the responsibilities they are expected to assume and for their achievements in carrying out such duties.

・Composition of remuneration for Directors and Audit & Supervisory Board Members
・Base remuneration
・Share remuneration-type stock options
Base remuneration is determined upon having taken into account factors that include an officer’s
professional duties, personal evaluations, and job performance with the aim of achieving management that
contributes to creating value for various stakeholders and elevating motivation for contributing to increasing
the Bank’s corporate value. Additionally, the Bank has adopted a share remuneration-type stock option planwith the aim of enhancing Director performance, elevating motivation for contributing to increasing
corporate value, and heightening managerial commitment to prioritizing shareholders. Remuneration for
Audit & Supervisory Board Members and Outside Directors consists solely of a defined amount of
remuneration to ensure greater neutrality and independence.

・Procedures for determining remuneration for Directors and Audit & Supervisory Board Members
With respect to total amounts of remuneration for the Bank’s Directors and Audit & Supervisory Board
Members, remuneration of Directors is determined by the Board of Directors and remuneration of Audit &Supervisory Board Members is determined by the Audit & Supervisory Board, within the range of officer
remuneration limits resolved by the General Meeting of Shareholders.

・Total amount of remuneration for Directors and Audit & Supervisory Board Members(Millions of yen)
Total by type of remuneration

Number of recipients(Number of eligible
officers)

Total remuneration

Directors

9

Outside Directors
among Directors

Classification

Base remuneration

Non-monetary
remuneration

Fixed remuneration

Performance-linked
remuneration

155

114

30

11

3

18

18

－

－

Audit & Supervisory
Board Members

5

36

36

－

－

Outside Audit & Supervisory
Board Members
Among Audit & Supervisory
Board Members

3

8

8

－

－

Total

14

192

150

30

11

*The table above includes one Director and one Audit & Supervisory Board Member who resigned uponconclusion of the 100th Annual General Meeting of Shareholders held on June 24, 2022.
*The non-monetary remuneration consists of share acquisition rights associated with share remunerationtype stock options.

36Directors, Audit & Supervisory Board Members and Executive Officers(As of June 28, 2023)
・Directors
Apr. 1980

Joined the Bank

Aug. 1996

June 2004

Assistant General Manager of International Division, General Manager
of New York Representative Office
Associate Director-General, General Manager in charge of Management
Planning Division
Associate Director-General, General Manager of Management Planning
Division
Executive Officer, General Manager of Management Planning Division

May 2007Managing Executive Officer

June 2007

Managing Director, Managing Executive Officer

June 2009

President (CEO)Apr. 2019

Chairman of the Board (current position)

Apr. 1986
Apr. 2006

Joined the Bank
General Manager of Yakuendai Branch

July 2012

June 2014

Associate Director-General, General Manager in charge of Management
Planning Division
Associate Director-General, General Manager of Management Planning
Division
Executive Officer, General Manager of Management Planning Division

Apr. 2016

Executive Officer, General Manager of Sales Division of Head Office

May 2016
Apr. 2017Managing Executive Officer, General Manager of Sales Division of Head
OfficeManaging Executive Officer

June 2018
Apr. 2019

Managing Director, Managing Executive Officer
President (CEO) (current position)

Apr. 1983
Apr. 2002

Joined The Fuji Bank, Limited (current Mizuho Bank, Ltd.)
General Manager of Capital Markets Department IV of Mizuho Securities
Co., Ltd.
General Manager of Funabashi Branch, Mizuho Bank, Ltd.

July 2003
May 2004

Chairman of the Board

Shunichi Aoyagi

Apr. 2014

President (CEO)(Representative Director)

Hitoshi Umeda

Feb. 2008
Aug. 2010

May 2017

Executive Officer of Mizuho Investors Securities Co., Ltd.
(current Mizuho Securities Co., Ltd.)
President and Representative Director of Defined Contribution Plan
Services Co., Ltd.
Managing Executive Officer of the Bank

June 2017

Vice President (COO) (current position)

June 2014

Vice President (COO)(Representative Director)

Ryuichi Matsumaru

37

Apr. 1986
Apr. 2010

Apr. 2016
June 2016
May 2017

Joined The Fuji Bank, Limited (current Mizuho Bank, Ltd.)
Associate Director-General of Finance and Public Corporation Administration
Department of Mizuho Corporate Bank, Ltd. (current Mizuho Bank, Ltd.)
Seconded to the Bank, Vice General Manager of Management Planning
Division
Seconded to the Bank, General Manager of Management Planning
Division
Executive Officer, General Manager of Management Planning Division

Apr. 2019

Managing Executive Officer, General Manager of Management Planning
DivisionManaging Executive Officer

June 2020

Managing Director, Managing Executive Officer (current position)

Apr. 1987
Nov. 2004
Apr. 2007

Joined the Bank
General Manager of Regional Corporation Department of Kashiwa
BranchGeneral Manager of Urayasu Branch

Apr. 2010

Deputy General Manager of Sales Management Division

Apr. 2012

General Manager of Goi Branch

July 2013
Apr. 2014
Apr. 2015

Associate Director-General, General Manager of Goi Branch
Associate Director-General, General Manager in charge of Branch
Support Division, and Manager of Group I of Branch Support Division
Associate Director-General, General Manager of Branch Support Division

June 2015

Executive Officer, General Manager of Branch Support Division

Apr. 2016

Executive Officer, General Manager of Corporate Strategy Division

May 2016

Apr. 2020

Executive Officer, Deputy General Manager of Sales Unit, and General
Manager of Corporate Strategy Division
Managing Executive Officer,
Regional Manager, and General Manager of Sales Division of Head Office
Managing Executive Officer

June 2020

Managing Director, Managing Executive Officer (current position)

Managing Director
Managing Executive Officer

Yasumitsu Kanda

Managing Director
Managing Executive Officer

Katsumi Shirai

Apr. 201938

Directors, Audit & Supervisory Board Members and Executive Officers (As of June 28, 2023)

・Outside Directors
Apr. 1975

Apr. 2008

Joined Chiba Prefectural Government
Assistant General Manager of Children and Families Division of Health andWelfare Department, Head of Declining Birthrate Countermeasure OfficeDirector-General of Women’s Support Center of General Planning
Department
Manager of Gender Equality Division of General Planning Department,
Deputy Counselor of General Affairs Department
Deputy Director of Commerce and Labor Department, Counselor of
General Affairs Department
Deputy Director of Health and Welfare Department

Apr. 2009

Director of Health and Welfare Department

Apr. 2011

Director of Environmental and Community Affairs Department

Director (Outside Director)

Mar. 2013

Retired from Chiba Prefectural Government

Hisako Toya

Apr. 2013

Executive Advisor of Federation of National Health Insurance Associationsof Chiba Prefecture
Outside Director of the Bank (current position)

Apr. 2000
Apr. 2002
Apr. 2004
Apr. 2007

June 2015
Apr. 1978

May 2004

Joined Nippon Telegraph and Telephone Public Corporation (current
Nippon Telegraph and Telephone Corporation)
General Manager of Financial Business Planning Division of Financial
Systems Sector of NTT DATA Corporation
General Manager of Payment Business Division of IT Business
Development Sector
Deputy General Manager of Payment Solutions Sector

June 2005

Senior Vice President

June 2011

Director, Executive Vice President

June 2012
June 2015

Representative Director and Senior Executive Vice President
AdvisorPresident and Representative Director of Japan Information Processing
Service Co., Ltd.
Outside Director of the Bank (current position)
Advisor of Japan Information Processing Service Co., Ltd. (current position)
External Director of Kyokuyo Co., Ltd. (current position)
External Director, Heiwa Real Estate Co., Ltd. (current position)

June 2001
Apr. 2002

Director (Outside Director)

Eiji Yamada

June 2017
June 2021
June 2022
Apr. 1977
Apr. 2002

Apr. 2003

Apr. 2004
Apr. 2005

Director (Outside Director)

Tetsuro Sugiura

Apr. 2007
July 2011
Apr. 2014
June 2019Nov.2019

Joined The Fuji Bank, Limited (current Mizuho Bank, Ltd.)
Related Business Department of Mizuho Bank, Ltd.
Seconded to Fuji Research Institute Corporation (current Mizuho Research& Technologies, Ltd.) Executive Board Member and Chief Economist
Group Strategy Department I of Mizuho Financial Group, Inc.
Seconded to Mizuho Research Institute, Ltd. (current Mizuho Research &Technologies, Ltd.) Chief Economist
Corporate Planning Department
Seconded to Mizuho Research Institute, Ltd. Chief Economist
Executive Officer of Corporate Planning Department
Managing Executive Officer, Chief Economist of Mizuho Research Institute,
Ltd.
Senior Executive Officer of Mizuho Research Institute Ltd.
Vice-chairman
Senior Director of Japan Economic Research Institute
Director and Research Committee Chairman of Japan Economic ResearchInstitute
Outside Director of the Bank (current position)
Research Committee Chairman of Japan Economic Research Institute(current position)

39

・Audit & Supervisory Board Members
Apr. 1982
Nov. 2002

June 2009

Joined The Fuji Bank, Limited (current Mizuho Bank, Ltd.)
Seconded to the Bank, Associate Director-General of Finance and Public
Corporation Administration Department of Mizuho Corporate Bank, Ltd.
(current Mizuho Bank, Ltd.)
Deputy Director of Loan and Occupational Operations Department ofMizuho Bank, Ltd.
Head of Loan Operations Department
Seconded to the Bank, Associate Director-General in charge of Risk
Management Division
Seconded to the Bank, Associate Director-General, General Manager of
Risk Management Division
Executive Officer, General Manager of Risk Management Division of the BankMay 2010

Managing Executive Officer, General Manager of Risk Management Division

Apr. 2013

Managing Executive Officer

Apr. 2019

Executive Officer

June 2019

Audit & Supervisory Board Member (current position)

Apr. 1984
Jan. 2004

Joined the BankMay 2005

General Manager of Umesato Branch

Jan. 2007

Deputy General Manager of Sales Management Division

Apr. 2008

Vice General Manager of Sales Management Division

Apr. 2009
July 2010

June 2014

General Manager of Financial Markets Division
Associate Director-General, General Manager of Financial Markets
Division
Associate Director-General, General Manager of Kashiwa Branch
Associate Director-General, General Manager of Risk Management
Division
Executive Officer, General Manager of Risk Management Division

Apr. 2017

Executive Officer, General Manager of General Administration Division

Apr. 2018

Managing Executive Officer

Apr. 2020

Executive Officer

June 2020

Audit & Supervisory Board Member (current position)

Apr. 2005
Mar. 2006
Feb. 2009
Apr. 2009

Standing Audit &Supervisory Board Member

Shigeto Kato

Oct. 2010
Apr. 2013
Standing Audit &Supervisory Board Member

Hitoshi Yokoyama

General Manager of Yotsukaido Branch

40Directors, Audit & Supervisory Board Members and Executive Officers (As of June 28, 2023)

・Audit & Supervisory Board Members
Apr. 1983

Apr. 2006

Joined The Yasuda Mutual Life Insurance Company (current Meiji Yasuda
Life Insurance Company)
General Manager of Kanazawa Branch
General Manager of Shinjuku Branch of Meiji Yasuda Life Insurance
Company
General Manager of Sapporo Branch

Apr. 2009

General Manager of Compliance Control Department

Apr. 2012

General Manager of Agency Department

Apr. 2014

Operating Officer of Osaka Marketing Headquarters

Apr. 2016

Managing Executive Officer

Apr. 2020

Senior Managing Executive Officer

Apr. 2021
June 2021

Full-time Advisor
Outside Audit & Supervisory Board Member of the Bank (current
position)
Director of Meiji Yasuda Life Insurance Company (current position)

Apr. 2001
Jan. 2004

Outside Audit &Supervisory Board Member

Takashi Kikugawa

July 2021

Apr. 1982

Apr. 2008

Joined Yasuda Fire & Marine Insurance Co., Ltd. (current Sompo Japan
Insurance Inc.)
General Manager of Shizuoka Automobile Sales Department of former
Sompo Japan Insurance Inc. (current Sompo Japan Insurance Inc.)
General Manager of Osaka Automobile Sales I Department

Apr. 2011

Executive Officer, General Manager of Tokyo Chuo Branch

Apr. 2014
June 2014

Representative Director and President of Sompo Credit Inc.
Audit & Supervisory Board Member (part-time) of Penta-Ocean
Construction Co., Ltd.
Audit & Supervisory Board Member of Universe Development Co., Ltd.
Audit & Supervisory Board Member of Marubeni Safenet Co., Ltd.

Apr. 2005

June 2017
June 2018
June 2020
Outside Audit &Supervisory Board Member

June 2022

Audit & Supervisory Board Member (part-time) of ZAIKEISHINYOHOSYO
Co., Ltd. (current position)
Outside Audit & Supervisory Board Member of the Bank (current
position)

Tatsuya Toyoshima
Hisako Toya, Eiji Yamada, Tetsuro Sugiura, Takashi Kikugawa and Tatsuya Toyoshima are independent
officers pursuant to Article 436-2 of the Securities Listing Regulations of the Tokyo Stock Exchange.

・Managing Executive Officers
Hiroshi Tanaka

Akira Miyamoto

Osamu Koda

Shoichi Mori

・Executive Officers
Masahiko Miyamoto
Tsuyoshi Kanasugi
Tsuyoshi Aoki
Zenji Yoshikoshi
Kunito Ozeki
Maki Okada

Hiroto Inoue
Manabu Koiwai
Junji Nakamura
Minoru Shibata
Nobuhiro Nishimura

41

Corporate Outline (As of March 31, 2023)
Name:

The Chiba Kogyo Bank, Ltd.

Date of Establishment:

January 18, 1952 (Start of Business: March 3, 1952)

Head Office:1-2, Saiwaicho 2-chome, Mihama-ku, Chiba 261-0001
Telephone: +81-43-243-2111
URL: https://www.chibakogyo-bank.co.jp/

Financial Market Division:

2-2, Saiwaicho 2-chome, Mihama-ku, Chiba 261-0001
Telephone: +81-43-243-0852
SWIFT Address: CHIK JP JT
Fax Number: +81-43-243-0235

Network
Head Office and Branches:

80

Number of Employees:

1,264

Stock Exchange Listing:Prime Market of Tokyo Stock Exchange

Share Capital:¥62,120 million

Number of Common Stock:

Authorized: 296,000 thousand shares
Issued and outstanding: 62,222,045 shares

Number of Common Stock Shareholders:

11,743

Mizuho Financial Group, Inc. and Mizuho Bank, Ltd. had been classified as other affiliates but no longer
qualify as other affiliates given that Mizuho Bank sold a portion of the shares it held in the Bank on
February 28, 2023.

Consolidated Subsidiaries (As of June 30, 2023)
Chiba Kogin Card Service Co., Ltd.
Main business line:

Credit card business, guarantees of housing and other loans

Established:

April 1979

Capital:¥100 million

Equity share of the Bank and subsidiaries:

100.0%

Chiba General Lease Co., Ltd.
Main business line:

Leasing, loans

Established:

December 1982

Capital:¥90 million

Equity share of the Bank and subsidiaries:

26.1%

Chiba Kogin Computer Soft Co., Ltd.
Main business line:

Development, sale and maintenance of computer systems

Established:

July 1991

Capital:¥30 million

Equity share of the Bank and subsidiaries:

55.0%

42

Organization Chart (As of June 30, 2023)
Risk Management Division
Compliance
Committee

Nomination andRemuneration
Committee

General Secretariat

Management Planning DivisionTokyo Liaison Office
Board of Directors

Digital Innovation Division
Chairman
General Meetingof Shareholders

President (CEO)Management
LiaisonCommittee

Vice President(COO)

Personnel Division

General Administration Division

Managing
Directors

Sales Unit

Directors
Sales Planning Division

Sales Support Division

Sales Promotion Division

Customer Service Promotion Division

Credit Supervision Division

Treasury Division

Financial Markets Division

Business Procedures and Operations Unit
Business Procedures andOperations Division
Intensive Operation
Division

Auditing Division
Audit & Supervisory Board

Office of Corporate Auditors

Standing Audit &Supervisory Board Member
Audit &
Supervisory Board Member

43Summary of Selected Financial Data (Consolidated)
Fiscal year ended March 31
Consolidated ordinary income(Millions of yen)(Thousands of U.S. dollar)

2019

2020

2021

2022

2023

¥50,831¥50,391¥49,986¥51,248¥51,303$384,177

8,335

6,725

7,224

9,005

9,671

72,420

5,183

4,530

4,763

6,385

6,477

48,502

9,592(1,717)

16,770

2,770

(275)

(2,059)172,583

166,892

182,491

175,445

170,718

1,278,403

2,814,394

2,851,390

3,248,236

3,570,502

3,180,129

23,814,056

Consolidated ordinary profit(Millions of yen)(Thousands of U.S. dollar)

Consolidated profit attributable toowners of parent(Millions of yen)(Thousands of U.S. dollar)

Consolidated comprehensive income(Millions of yen)(Thousands of U.S. dollar)

Consolidated net assets(Millions of yen)(Thousands of U.S. dollar)

Consolidated total assets(Millions of yen)(Thousands of U.S. dollar)

Net assets per share(Yen)(U.S. dollar)

1,674.88

1,687.69

1,938.72

1,950.75

1,964.23

14.71

Basic earnings per share(Yen)(U.S. dollar)

53.36

51.75

57.34

85.75

92.07

0.69

Diluted earnings per share(Yen)(U.S. dollar)

33.61

20.27

17.56

26.63

28.90

0.22

6.01

5.73

5.50

4.80

5.23

8.70

8.26

8.49

8.58

8.86

3.21

2.72

2.78

3.64

3.83

5.60

4.88

5.17

3.06

5.83

30,659(17,954)

256,027

333,925(430,231)(3,221,739)(4,367)

6,526(28,049)

2,326

10,81380,972

1,184(3,998)(1,261)(9,885)(4,479)(33,541)¥147,441¥132,233¥359,075¥685,448¥261,551$1,958,597

1,464[1,015]

1,452
[950]

1,428
[891]

1,387
[854]

Equity ratio(%)

Consolidated equity ratio (underJapanese standards)
Consolidated return on equity

(%)
(%)

Consolidated price earnings ratio(Times)Cash flows from operating activities(Millions of yen)(Thousands of U.S. dollar)

Cash flows from investing activities(Millions of yen)(Thousands of U.S. dollar)

Cash flows from financing activities(Millions of yen)(Thousands of U.S. dollar)

Cash and cash equivalents at end of
period(Millions of yen)(Thousands of U.S. dollar)

Number of employees[Separately, average number of
temporary employees] (People)
Notes: 1.
2.
3.

1,350
[773]

U.S. dollar amounts are the yen equivalent, calculated, for convenience only, at a rate of ¥133.54 = U.S. $1, the approximate Tokyo
foreign exchange market rate as of March 31, 2023.
Equity ratio is calculated by dividing (total net assets at end of period – share acquisition rights at end of period - non-controllinginterests at end of period) by total assets at end of period.
The “Consolidated equity ratio (under Japanese standards)” has been calculated based on the “Criteria for Banks to Judge Whether
Their Capital Adequacy Status Is Appropriate in Light of Their Assets, etc. Under Article 14-2 of the Banking Act” (Financial Services
Agency Public Notice No. 19 of 2006).

44

Business Performance (Consolidated)
In FY2022, whereas the Japanese economy has been mounting a gradual recovery amid progressive
economic normalization in wake of the COVID-19 pandemic, business conditions persist in a state of instability
amid an uncertain outlook regarding the prospect of expanding economic activity due to factors that include
a depreciating yen, ongoing price and wage increase, the pace of recovery in consumer spending, a trend of
corporations setting their sights on the post-corona landscape, and the monetary policy outlook.
The economy of Chiba Prefecture, the base of the Bank’s business, similarly showed signs of gradual
recovery particularly with respect to consumer spending, housing construction, business capital investment,
and manufacturing activity, but such momentum has been diminishing amid uncertainties that mirror thesituation nationwide.
Under this business environment, the Bank has been seeking to become a corporate group with an absolutepresence by sharing diverse potential needs that bring happiness to customers as a reliable advisor andcontinuing to accompany them in that regard, underpinned by its Long Term Management Vision.
To such ends, we have been actively engaging in various measures under our Medium Term Management
Plan, which was launched in 2022 and is positioned as the stage for building a platform toward establishing
the CKB Community, which serves as our Long Term Management Strategy, based on our previous Medium
Term Management Plan.
As a result, the Group’s financial position and performance for FY2022 were as follows.
Ordinary income increased ¥54 million year on year to ¥51.303 billion, amid gains in fees and commissions
and despite a downturn in interest income. Ordinary expenses decreased ¥610 million year on year to¥41.632 billion, due to effects of reducing expenses associated with lower credit costs along with reducing
and streamlining deposit insurance premiums, which was offset by increases in loss on sale of bonds and loss
on redemption of bonds in part due to improvement of the marketable securities portfolio. As a result, theGroup posted ordinary profit of ¥9,671 million, an increase of ¥665 million year on year. Profit attributable toowners of parent increased ¥91 million year on year to ¥6,477 million.
Regarding the business performance by segment, ordinary income from banking business increased ¥144
million year on year to ¥43.025 billion, while its segment profit increased ¥799 million year on year to ¥8,945
million. Ordinary income from leasing business increased ¥64 million year on year to ¥7,835 million, while its
segment profit increased ¥77 million to ¥196 million. Ordinary income from credit guarantee and credit cardbusiness decreased ¥233 million year on year to ¥1,816 million, while its segment profit decreased ¥126
million to ¥1,085 million. Ordinary income from other business segment increased ¥227 million year on yearto ¥1,696 million, while its segment profit increased ¥123 million year on year to ¥193 million.
Deposits totaled ¥2,821.8 billion, an increase of ¥18.4 billion year on year, primarily due to an increase incorporate and individual deposits. Loans and bills discounted totaled ¥2,354.2 billion, an increase of ¥49.5
billion year on year, as a result of efforts to discover latent financing needs through consulting sales activities,
and proactive efforts toward financial needs of business partners. Securities holdings totaled ¥499.6 billion,a decrease of ¥20.2 billion year on year.
As a result, total assets decreased ¥390.3 billion year on year to ¥3,180.1 billion, and total net assets
decreased ¥4.7 billion year on year to ¥170.7 billion at the end of FY2022.
The consolidated equity ratio (under Japanese standards) at the end of FY2022 rose 0.28 percentage points
from the end of FY2021 to 8.86%.

45

Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of U.S.
dollars)*(Millions of yen)
As of March 31, 2022

As of March 31, 2023

¥685,727
97
154
519,9222,304,777
3,750
36,753
19,324
5,979
11,710
53
0
1,580
2,670
2,420
1
247
261
5,844
(8,781)3,570,502¥261,9189789
499,635
2,354,293
3,174
40,28919,033
6,045
11,398
77
58
1,455
2,704
2,451
5
247
1,117
6,463
(8,687)
3,180,129$1,961,345
726
666
3,741,463
17,629,871
23,768
301,700
142,527
45,26785,353577
434
10,896
20,24918,354
37
1,850
8,365
48,397(65,052)
23,814,056

2,803,335
129,700
1,243
423,646164
25,303
3,993

2,821,828
129,700―
21,830128
25,533
3,420

21,130,957
971,245―
163,472959
191,201
25,610

38

33

247

―
154
1,631
5,844
3,395,056

105
70
296
6,463
3,009,410

786
524
2,217
48,39722,535,645

62,1207,889
88,440(937)

62,1206,971
92,795(2,350)465,179
52,202
694,885(17,598)

157,512
14,495―(400)
14,094120
3,718
175,445¥3,570,502

159,536
7,291
47
(398)
6,940
122
4,119
170,718¥3,180,129

1,194,668
54,598352(2,980)51,969914
30,845
1,278,403$23,814,056

AssetsCash and due from banks
Monetary claims bought
Trading account securities
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Tangible fixed assets
Buildings, net
Land
Leased assets, net
Construction in progress
Other tangible fixed assets
Intangible fixed assets
SoftwareLeased assets
Other intangible fixed assets
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Negotiable certificates of deposit
Payables under securities lending transactions
Borrowed money
Foreign exchanges
Other liabilities
Retirement benefit liability
Provision for retirement benefits for directors(and other officers)
Provision for share awards
Provision for reimbursement of deposits
Deferred tax liabilities
Acceptances and guarantees
Total liabilities
Net assets
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets* Please refer to the note 1 on page 44.

46

As of March 31, 2023

(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Thousands of U.S.
dollars)*(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2023

¥51,248¥51,303$384,177

Ordinary income
Interest income

28,29426,961

201,895

Interest on loans and discounts

22,063

21,819163,389

Interest and dividends on securities

5,322

4,357

32,627

Interest on call loans and bills bought

(0)

145

1,086

Interest on deposits with banks

764

490

3,669

Other interest income

143

148

1,108

Fees and commissions

11,781

12,436

93,126

Other ordinary income

529

1,088

8,147

10,643

10,81781,002

918

1,021

7,646

Other income
Recoveries of written off receivables
Other

9,725

9,796

73,356

Ordinary expenses

42,243

41,632

311,757

367

414

3,100

Interest expenses
Interest on deposits

270

142

1,063

Interest on negotiable certificates of deposit

2

2

15

Interest on call money and bills sold

(8)

(20)

(150)

Interest on payables under securities lendingtransactions

9

17

127

Interest on borrowings and rediscounts

91

87

651

Other interest expenses

2

184

1,378

Fees and commissions payments

3,854

4,003

29,976

Other ordinary expenses

1,345

3,567

26,711

General and administrative expenses

25,353

24,413

182,814

Other expenses

11,321

9,234

69,148Provision of allowance for loan losses

1,368

470

3,520

Other

9,953

8,763

65,621

Ordinary profit

9,005

9,671

72,420

―

12

90

―

12

90

842

419

3,138

109

158

1,183

Extraordinary income
Gain on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses

732

261

1,954

Profit before income taxes

8,162

9,264

69,372

Income taxes - current

853

1,920

14,378

Income taxes - deferred

791

624

4,673

Total income taxes

1,645

2,545

19,058

Profit

6,517

6,719

50,315

132

242

1,812

¥6,385¥6,477$48,502

Profit attributable to non-controlling interests
Profit attributable to owners of parent* Please refer to the note 1 on page 44.

47

(Consolidated Statements of Comprehensive Income)(Thousands of U.S.
dollars)*(Millions of yen)
Fiscal year ended
March 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net of tax
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests* Please refer to the note 1 on page 44.

48

Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2023

¥6,517¥6,719$50,315(3,747)(6,995)(52,381)(4,274)(7,044)(52,748)

―

47

352

527

1

7

¥2,770¥(275)$(2,059)

2,687

(677)

(5,070)

82

401

3,003

(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2022
(Millions of yen)

Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

62,120Retained earnings

16,172

83,613Cumulative effects of changes
in accounting policies

Total shareholders'equityTreasury shares(937)

160,969

(13)

(13)

62,12016,172Issuance of new shares

3,010

3,010

6,020

Transfer from share capital toother capital surplus(3,010)3,010―

Restated balance

83,599(937)

160,955

Changes during period

Dividends of surplus(1,545)(1,545)

Profit attributable to ownersof parent

6,385

6,385

Purchase of treasury shares
Cancellation
sharesoftreasury(14,302)(14,303)(14,303)

14,302―

Net changes in items otherthan shareholders' equity―(8,282)

4,840

(0)

(3,443)62,1207,889

88,440(937)

157,512

Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeShare
acquisitionrightsNon-controllinginterests

Total net assets

18,720(928)

17,792

94

3,635

182,491

Cumulative effects of changes
in accounting policies(13)
18,720

Restated balance(928)

17,792

94

3,635

182,478

Changes during period

6,020

Issuance of new shares
Transfer from share capital toother capital surplus―

Dividends of surplus(1,545)

Profit attributable to ownersof parent

6,385

Purchase of treasury shares(14,303)

Cancellation
sharesoftreasury

Net changes in items otherthan shareholders' equity―(4,225)527(3,697)26

82(3,589)Total changes during period(4,225)527(3,697)26

82(7,032)

Balance at end of period

14,495(400)

14,094120

3,718

175,445

49

Fiscal year ended March 31, 2023
(Millions of yen)

Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

62,120Retained earnings

7,889

Treasury shares

88,440Total shareholders'equity(937)

157,512

Changes during period
Dividends of surplus(1,298)(1,298)

Profit attributable to ownersof parent

6,477

6,477
(4,318)(4,318)

257

906

1,164

(2,000)2,000―

Purchase of treasury shares
Disposal of treasury shares
Cancellation
sharesoftreasury

Transferfromretainedearnings to capital surplus

―

823

(823)

―

(918)

4,354

(1,412)

2,023

62,1206,971

92,795(2,350)159,536

Share
Nonacquisition controllingrightsinterests

Total net
assetsNet changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesRemeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income14,495―(400)

14,094120

3,718

175,445

Changes during period
Dividends of surplus(1,298)

Profit attributable to ownersof parent

6,477

Purchase of treasury shares(4,318)

Disposal of treasury shares

1,164

Cancellation
sharesoftreasury―

Transferfromretainedearnings to capital surplus―

Net changes in items otherthan shareholders' equity(7,203)47

1(7,154)1

401(6,751)

Total changes during period(7,203)47

1(7,154)1

401(4,727)

Balance at end of period

7,291

47

(398)

6,940

122

4,119

170,718

50

Fiscal year ended March 31, 2023
(Thousands of U.S. dollars)*Shareholders’ equity
Share capital

Capital surplus

465,179

Balance at beginning of period

Retained earnings

59,076662,273

Total shareholders'equityTreasury shares(7,017)

1,179,512

Changes during period
Dividends of surplus(9,720)(9,720)

Profit attributable to owners ofparent48,502

48,502(32,335)(32,335)

1,925

6,784

8,716

Cancellation of treasury shares(14,977)

14,977―

Transferfromretainedearnings to capital surplus

6,163(6,163)―(6,874)32,604(10,574)

15,149465,179

52,202

694,885(17,598)

1,194,668

Share
Nonacquisition controllingrightsinterests

Total net
assetsPurchase of treasury shares
Disposal of treasury shares―

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesRemeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income108,544―(2,995)105,541

Balance at beginning of period

899

27,842

1,313,801

Changes during period
Dividends of surplus(9,720)

Profit attributable to ownersof parent

48,502

Purchase of treasury shares(32,335)

Disposal of treasury shares

8,716

Cancellation
sharesoftreasury―

Transferfromretainedearnings to capital surplus―

Net changes in items otherthan shareholders' equity(53,939)352

7(53,572)

7

3,003(50,554)

Total changes during period(53,939)352

7(53,572)

7

3,003(35,398)

Balance at end of period

54,598352(2,980)51,969914

30,845

1,278,403* Please refer to the note 1 on page 44.

51

(4) Consolidated Statements of Cash Flows(Thousands of
U.S. dollars)*(Millions of yen)

Fiscal year ended Fiscal year ended Fiscal year ended
March 31, 2022 March 31, 2023 March 31, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in allowance for loan losses
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for directors(and other officers)
Increase (decrease) in provision for awards
Increase (decrease) in provision for reimbursement of deposits
Interest income
Interest expenses
Loss (gain) related to securities
Foreign exchange losses (gains)
Loss (gain) on disposal of non-current assets
Net decrease (increase) in trading account securities
Net decrease (increase) in loans and bills discounted
Net increase (decrease) in deposits
Net increase (decrease) in negotiable certificates of deposit
Net increase (decrease) in borrowed money (excluding subordinatedborrowings)
Net decrease (increase) in due from banks (excluding due from Bank ofJapan)Net increase (decrease) in payables under securities lending transactions
Net decrease (increase) in foreign exchanges - assets
Net increase (decrease) in foreign exchanges - liabilities
Interest received
Interest paid
Other, net
Subtotal
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from sale of securities
Proceeds from redemption of securities
Purchase of tangible fixed assets
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of shares
Purchase of treasury shares
Proceeds from sales of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period* Please refer to the Note 1 on page 44.

52¥8,162
2,376
732
43(1,453)¥9,264
2,084
261
(93)
(572)

$69,372
15,606
1,954(696)(4,283)

(19)

(5)

(37)

―
(140)
(28,294)
367
(290)
(5)
109
(22)
(9,458)34,43921,200105(84)(26,961)
414
1,394
(0)
145
64
(49,515)
18,492―786(629)(201,895)
3,100
10,439
(0)
1,086
479
(370,788)
138,475―

278,444(401,815)(3,008,949)

60

(87)

(651)

(3,394)(373)
121
28,169(402)
3,881
334,254(1,243)576(36)
27,017(544)(9,123)(430,264)(9,308)4,313(270)
202,314(4,074)(68,317)(3,221,986)

(572)
244
333,925(451)
485(430,231)(3,377)
3,632(3,221,739)(93,712)53,791
43,962(1,167)
―
(547)
2,326

(90,303)
68,59534,469(1,098)88(936)
10,813(676,224)
513,666
258,117(8,222)659(7,009)80,972

5,963(14,303)―(1,545)(9,885)―(4,318)1,138(1,298)(4,479)―(32,335)
8,522(9,720)(33,541)5
326,372
359,075

0(423,896)
685,448

0(3,174,300)
5,132,904¥685,448¥261,551$1,958,597

- Cash Flows
Cash flows during FY2022 and their causes are as follows.
Cash flows from operating activities
Net cash used in operating activities amounted to ¥430.2 billion (a decrease of ¥764.1 billion from ¥333.9
billion provided by FY2021). The main contributory factors were ¥9.2 billion in profit before income taxes,
an increase of ¥49.5 billion in loans and bills discounted, an increase of ¥18.4 billion in deposit and adecrease of ¥401.8 billion in borrowed money.
Cash flows from investing activities
Net cash provided by investing activities amounted to ¥10.8 billion (an increase of ¥8.4 billion from ¥2.3
billion provided by FY2021). The main contributory factors were ¥103.0 billion in proceeds from sales andredemption of securities, and ¥90.3 billion in purchase of securities.
Cash flows from financing activities
Net cash used in financing activities amounted to ¥4.4 billion (an increase of ¥5.4 billion from ¥9.8 billion
used in FY2021). The main contributory factors were ¥4.3 billion expended on the purchase of treasury shares.
As a result, cash and cash equivalents at the end of FY2022 amounted to ¥261.5 billion (a decrease of ¥423.8
billion year on year).

Major Shareholders (Common Stock) (As of March 31, 2023)
Number of
Shares Owned

Name

Proportion of Total
Shares (%)

Mizuho Bank, Ltd.

7,483,910

12.61

ARIAKE MASTER FUND
(Standing proxy: Tachibana Securities Co., Ltd.)5,094,500

8.58

The Master Trust Bank of Japan, Ltd. (trust account)

4,011,100

6.76

Custody Bank of Japan, Ltd. (trust account-E)

2,100,000

3.53

Chiba Kogyo Bank Employee Ownership

1,389,817

2.34

Sakamoto Feeds Co., Ltd.

1,249,700

2.10

Meiji Yasuda Life Insurance

1,158,200

1.95

Custody Bank of Japan, Ltd. (trust account)

1,155,200

1.94

Mizuho Trust & Banking Co., Ltd.

926,800

1.56

SBI SECURITIES Co., Ltd.

914,545

1.54

Notes: 1. The proportion of the number of shares owned to total shares was calculated after deducting treasury shares (2,894,313 shares)
2. The number of treasury shares in the proportion of shares owned to total shares does not include the Bank’s shares held by Custody
Bank of Japan, Ltd. (trust account-E) as trust assets in the employee stock ownership plan(J-ESOP).

* This document follows the Annual Select format for English-language disclosure developed by ZAIHON, INC. toincrease the level of convenience of investors outside Japan based on Japanese-language statutory disclosurematerial, timely disclosure material prescribed by securities exchanges and voluntarily disclosed IR material.
Annual Select is a registered trademark of ZAIHON, INC. Reproduction or copying without prior permission isprohibited.
* While every best effort has been made to provide a translation meeting the quality standards required ofprofessionals, the Bank does not guarantee it is 100% accurate. Therefore, please verify the original Japanese
text for any final judgments made based on this information.

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