ANNUAL REPORT 2021

Corporate Outline (As of March 31, 2021)
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:74

Number of Employees:

1,342

Stock Exchange Listing:

1st Section 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:

11,816The Chiba Kogyo Bank, Ltd. is an affiliate under the equity method of Mizuho Financial Group, Inc.
CapitalPercentage of
Name
Location
Business category(Millions ofFoundedvoting rights ofyen)
the Bank
Mizuho Financial
Group, Inc.

Chiyoda-ku,
Tokyo

Holding company for
financial service
companies

2,256,767

Jan. 8, 2003

17.8%
(17.8%)

Note: Figures in parentheses in the column “Percentage of voting rights of the Bank” represent the Bank’s shares held by subsidiaries of Mizuho
Financial Group, Inc.

Contents
01 Corporate Outline
02 History of the Chiba Kogyo Bank
03 Financial Highlights (Non-Consolidated)
05 Non-Financial Highlights
07 Message from the President
11 Medium Term Management Plan
12 Chiba Kogyo Bank Sustainability Statement
13 Sustainability Promotion Framework
14 Major Sustainability Initiatives
17 Regional Revitalization

18 Chiba Prefecture –Our Business Base19 Corporate Governance
21 Board of Directors, Audit & Supervisory Board
21 Members and Executive Officers
26 Consolidated Subsidiaries, Organization Chart
27 Summary of Selected Financial Data
27 (Consolidated)
28 Business Performance (Consolidated)
29 Consolidated Financial Statements
36 Major Shareholders (Common Stock)1History of the Chiba Kogyo Bank
As moves to establish new banks that were more community-based gathered momentum, the Chiba Kogyo
Bank was founded in 1952 with the spirit of “acting as a reliable adviser to small- and medium-sizedenterprises in Chiba Prefecture”. We have promoted community-based finance rooted in the regional area
and contributed to the local economy and local society.
As a “consulting bank”, we will think deeply and act (Kodo) with closeness and kindness ever more than
before to create the future with customers and the community.

1952●Establishment
Share capital：¥50 million
Deposit：¥229 million
Loans and bills discounted：¥112 million

1972●Built the new Head Office building

1973●Listed on 1st section of the Tokyo Stock Exchange

1974●Deposits online begins operation

1991●Formulation of a corporate philosophy and adoption of the cosmos flower as the banksymbol2000●Injection of ¥60.0 billion of public funding

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

2013●Repayment of ¥60.0 billion of public funding

2018●Concluded “FinX Partnership” agreement●Established “FinX Digital Co., Ltd.”

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

Balance of Deposits

Balance of Loans

3,000.02,500.0

2019
Total deposits
reached ¥2,500 billion

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

1990
Total deposits
reached ¥1,500 billion

March 2021

2,000.0

Deposits：¥2,781.6 billion
Loans ：¥2,297.6 billion
1,500.0

1980
Total deposits
reached ¥500 billion

1,000.0

1973
Total deposits
reached ¥200 billion

500.0

0
1960

1970

1990

1980

2

2000

2010

2020

Financial Highlights (Non-Consolidated)
Ordinary profit

Profit(Millions of yen)

(Millions of yen)

7,764

5,148
6,645

2019.32020.3

4,679

4,260

5,915

2019.32021.32020.32021.3

Deposits

Balance of Customer Assets under Custody(Billions of yen)(Billions of yen)

Deposits

Public Bonds
Foreign Currency Deposits

Personal Deposits

Investment Trusts
Annuity Insurance

2,781.6
2,510.7
1,892.6

2,559.2
1,933.1

2,067.0
208.3

7.6

8.7

7.5

113.0
2020.32019.32021.3

12.2

SME Loans / Housing Loans(Billions of yen)(Billions of yen)
SME Loans

2019.3

2,159.2

2020.3

Housing Loans

2,297.6
1,019.92021.33

11.5

2021.32020.3Loans and Bills Discounted

2,087.8

127.8

95.5
13.4

2019.3

212.1

220.6

1,050.3

1153.3

796.8

822.9

853.1

2019.32020.32021.3

ROE (Net income basis)(%)

ROA (Net income basis)[Net income ÷ (average balance of total net assets - average balance ofshare acquisition rights)] x 100(%)[Net income ÷ average balance of total assets for the period (excluding
customers’ liabilities for acceptances and guarantees)] x 100

0.20

3.58
2.98

2.76

0.18
0.15

0.15

0.15

0.10
The higher the value, thegreater the profitability ofshareholders’ equity.

2019.32020.30.05

2021.32019.3

Core OHR(%)

The higher the value, thegreater the profitability ofmanagement.

2020.32021.38.17

8.31

2020.32021.3Equity Ratio[Expenses ÷ gross operating profit (excluding profit related to debentures,such as government bonds)] x 100

76.48

76.39

(%)

8.58
75.44

The lower the value, thegreater the efficiency ofmanagement.

2019.32020.32021.32019.3Disclosed Claims under
the Financial Reconstruction Law

Long-term Issuer Rating/Outlook(Japan Credit Rating Agency, Ltd.)(%), (Billions of yen)
Balance of disclosed claims● Ratio of disclosed claims

1.60

45

Rating Assignment Date

1.44
1.29
30.7

37.4

30

28.6
15

2020.3September 18,
2019

October 12,
2020

A-

A-

A-

StableStableStableA Long-term Issuer Rating Scale enables comparison of
the overall capacity of an obligor (issuer) to honor its
entire financial obligations with such overall capacity ofothers.

0

2019.3September 21,
20182021.34

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

Percentage of Employees Taking Childcare Leave

(%)

(%)

Women
Men

Calculated by dividing the number of women who took childcare
leave by the number of female employees who gave birth.
Calculated by dividing the number of men who took childcare leaveby the number of male employees whose spouses gave birth.

● Women

20.07

18.60

20.21

100.00● Men

100.00100.00

40.54

40.47
26.19

2020.32019.32019.32021.32020.32021.3

Number of dementia Supporter / Service Care
Supporter(Cumulative number of people)

Employment Rate of People with Disabilities(%) Ratio as of June 1

Dementia Supporter
Service Care Supporter

2.46
2.21

2019.62.20

2020.6

1,499

2021.6

Issuance of Chiba Kogyo Bank SDGs Private
Placement Bonds（Number of bonds、Issue amount）

1,606

1,606

127

132

132

2019.32020.32021.3

Number of Employees Acquired 1st Grade Certified
Skilled Professional of Financial Planning(People)98

2021.312¥1.15 billion

77
58* Handling began from July 1, 20202019.352020.32021.3

Number of Employees Acquired M&A Senior
Expert Accreditation(People)Number of Companies Supported by Consulting
Services(Number of cases)
Number of cases Supported in Relation to
Business Succession
Number of cases Supported in Relation to
M&A

85

78

315

64

2019.32020.32021.32019.32020.3320
246

2021.3

Number of Internet Banking Agreements(Individual customers)(Number)

Ratio of Paperless Operations
(%)

249

300
263

Ratio of reduction in photocopying and printing expenses compared toresults for March 31, 201935.1
160,321
135,439

146,555

2.2
2019.32021.32020.32019.3

Number of Bankbook-free Accounts

2020.32021.3External Evaluation(Number)

6,572

1,557
922
2019.32020.32021.3

6“Platinum Kurumin”
certified“Eruboshi”
highest grade designation

This certification is awarded to companies
that carry out measures to support
employees with children to meet the higher
standards of accreditation that is set by the
Ministry of Health, Labor and Welfare.

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

Message from the President

Hitoshi Umeda
President (CEO)As always, I would like to express my sincere gratitude for your continued patronage and support for the
Chiba Kogyo Bank (the “Bank”).
On this occasion, we have formulated the “Annual Report 2021,” which highlights the Bank’s management
activities and operating results, and provides other initiatives. We would be pleased if stakeholders could
take the time to peruse this document.

Introduction
The spread of the novel coronavirus (COVID-19)
disease, the Declaration of State of Emergency, andthe implementation of Priority Preventive Measures
have limited economic activity across Japan. Amid
this, the economy of Chiba Prefecture, the base of
Chiba Kogyo Bank’s business, has faced an evenmore difficult situation due to factors such as
requests to restaurants to suspend operations or
shorten business hours, and restrictions on theholding of large-scale events.
People’s lifestyles and businesses have been widelytransformed by the COVID-19 pandemic for over a
year. Our customers, including customer companies,
are dealing with a variety of unprecedented
concerns and challenges.

7

Within this kind of environment, we all themore recognize that the primary responsibility ofregional financial institutions like ourselves is to
respond flexibly and swiftly in order to support
local economic activity and the lifestyles ofpeople in the region. In addition to providing
support for securing finance, the Bank is also
putting even greater effort into business support
that creates a future for our customers as a“consultant bank”, with a focus on the
post-pandemic world. This support includes
transforming the business models of customer
companies, responding to personnel shortages,
conducting workstyle reform, and advancing
digitalization.

Business Environment
Chiba Prefecture, the base of the Bank’s business,
is a region with a variety of different characteristics,
such as the bay area, which is close to central Tokyoand contains large amusement parks, shopping
facilities, and factories, and the Minamiboso area,
which offers beautiful, warm seas and verdant hills.
Each year the prefecture is visited by many tourists.
There has also been steady progress on thedevelopment of infrastructure, such as the Ken-O
Expressway, which was designed to alleviate traffic
congestion in the Tokyo Metropolitan area and torevitalize the region, and the strengthening of thefunctions of Narita Airport is expected to boost
industry in the area around the airport. It could besaid the prefecture has potential for further growth.
However, there are concerns due to factors such as
the prolonged negative effects on economic activity
caused by the COVID-19 pandemic and theincreasing frequency of natural disasters, such as

heavy rains and typhoons like the one thatcaused significant damage in Chiba Prefecture in
the autumn of the year before last, due toclimate change.
Also, while the population of Chiba Prefecture
as of March 31, 2021, was more than 6.27 million
people, in the medium- to long-term it isexpected to trend toward population decrease,and the aging population combined with fallingbirthrates. Furthermore, backed by the businesschallenges of the prefecture’s small and medium
enterprises’ and individual customers’ values andneeds becoming increasingly diverse andsophisticated, in addition to currently continuing
low interest rate environment, we anticipate an
expansion of financial competition, including thatinvolving other business lines, such as the
progress in financial technology as represented
by FinTech.

Summary of Financial Results
We will now provide an overview of our financial
results for the fiscal year ended March 31, 2021.
Ordinary profit was ¥6,645 million, an increase of ¥729
million year on year. This was due to a big increase inprofits from core operations caused by factors such as
an increase in interest on loans and discounts due tosupport for securing finance accompanying the
COVID-19 pandemic, and an increase in corporate
processing fees in the consulting field in response to thethree major needs of “business succession”, “labor
shortages”, and “management streamlining”, and anincrease in processing fees related to customer
assets under custody, such as sales of investment
trusts against the background of the steady
performance of the stock market.
We recognize that Consulting Kodo, which puts
customers first by not only providing financing
support but also business support provided by theentire Bank working together to help solve theissues facing customers, including customer
companies, leads to the securing of revenues.

Medium-Term Management Plan Progress
In FY2019, we launched Consulting Kodo Project 2022
~ Together towards the future –Closer and Deeper– ~.
The aim of this project is to evolve into a highly
profitable consulting bank by putting together anoperational force to focus on consulting activities that
pursue low cost operations through optimization.
Out of our main business management items, wehave been making steady progress on corporate andoptimization indicators, including recording a highratio of achievement overall, and we judge that wehave been able to build a solid foothold for the final
fiscal year of the plan. For individual customer
indicators, the achievement ratio as a whole was
low as we were unable to carry out proactive
marketing activities due to the COVID-19 pandemic.

However, there was a steady increase in thenumber of cases in which we were able torespond to the succession needs of asset
utilization customers meaning we have alreadyexceeded an achievement ratio of 100% for the
final year of the plan. Regarding the state ofprogress on core indicators, as of March 31,
2021, there was firm progress made. The balanceof deposits was ¥2,781.6 billion, an achievement
ratio of 143.1%, and the balance of loans andbills discounted was ¥2,297.6 billion, an
achievement ratio of 98.9%, so it looks like wewill be able to achieve our targets in the final
year of the plan.

8

Message from the President
Our Strengths
Chiba Prefecture is one of the best prefectures inJapan for agriculture, forestry, and marine
production due to blessings such as a warm climate
in which a variety of flowers bloom all year roundand abundant fishing grounds thanks to its position
between Tokyo Bay and the Pacific Ocean.
We engage in business activities that utilize theprefecture’s rich marketable resources to the
maximum. For example, in regard to agri-food business,
we are creating agriculture-commerce-industry
partnerships, primarily through efforts such as businessmatching, and advancing sixth industrialization by
diversifying integrated management spanning fromproduction through to processing and sales.
Furthermore, we are actively providing support andrevitalizing regions through consulting by specialist
teams in areas such as agricultural welfare
programs.
In order to provide consulting in these kinds ofspecialist areas, we need to leverage advanced
knowledge, information, and expertise in order tomake proposals that meet customers’ varied needs.
To do so, securing and cultivating Bank employees is
crucial. The Bank is striving to develop employees
who will be active rather than passive, encouraging
themselves to constantly work toward further
growth, mainly through OJT.

9

We also support employees to acquire
accreditation through initiatives such as providing
support for the cost of acquiring accreditation,
setting up incentive systems, and holding voluntaryseminars. To date, 85 employees have acquired“M&A Senior Expert” accreditation and 98
employees have acquired “1st grade Certified
Skilled Professional of Financial Planning”.
Currently, our headquarters is bringing in experts
from other business fields and going forward weplan to dispatch bank employees of various ages
to customer companies in order to build up awide range of experience so that we can develop
employees who have ideas beyond those which
would have been found in banks before today.
We are continuing to foster an organizational
culture that encourages employees to think andact for themselves and we have enhanced
personnel systems in a way that anticipates theautonomy of each individual employee, such as
introducing a flex-time system that enables each
employee to set their daily working hours attheir own discretion, and removing restrictions
on secondary or dual employment. Our young
employees are also actively coming up with ideas
and our introduction of a year-round officecasual dress code which does not require
employees to wear neckties came from ideas
from young employees.

Sustainability Initiatives
In order to realize management that takes into
account value creation for a variety of stakeholders,
including shareholders, customers, employees, andlocal communities, and to increase corporate value
through the continuous and stable growth of theBank, it is essential that we engage in sustainability
initiatives.
The Bank has been aiming to realize a sustainable
society for a long time and we have engaged in avariety of CSR (Corporate Social Responsibility)
activities. Recently we formulated the ”Chiba Kogyo
Bank Sustainability Statement“ to clarify our intent
to make an even greater contribution to thesustainability of local communities through theselection of “Sustainability Key Issues.”

Based on the concept that as a regional
financial institution, realizing sustainability for
Chiba Prefecture will lead to the growth anddevelopment of the Bank and our stakeholders,
we have whittled down the “Sustainability Key
Issues” by identifying which of the various issues
facing the prefecture are priority issues for which
we can leverage the Bank’s strengths tocontribute to a solution, so that we can make afurther leap toward achieving a glistening Chibathat future generations can be proud of.
By advancing business activities that have along-term focus, such as the “Sustainability Key
Issues”, we think we can contribute to achieving
the “SDGs” adopted by the UN.

70th Anniversary of the Bank’s Founding, New Mid-Term Management Plan, and Towards the Future
Amid growing momentum toward establishingboldly reform things that were taken for granted
new banks that were more rooted in their regions,
if necessary, and to reform our organization into
Chiba Kogyo Bank was established with robust
one where each and every one of us can think
support from local people based on the founding
and act without fear of failure and always take on
spirit of “acting as a reliable adviser to small- andthe challenge of achieving high goals. Under the
medium-sized enterprises in Chiba Prefecture”.
new medium term management plan, we will
Operations began at our main branch in Chiba City
aim to accelerate initiatives for providing new
on March 3, 1952, meaning that next year, in March
added value through more evolved Consulting
2022, we will greet the 70th anniversary of theKodo. Also, in the medium- to long-term, we will
aim to address environmental issues such as
Bank’s founding. This has been achieved because ofmany years of support from local people and all
global warming, contribute to the revitalization
officers and employees of the Bank would like toof the region’s communities and economy, andexpress our sincere gratitude.
realize a sustainable society.
Also, our new medium term management plan will
The Bank, with officers and employees joining
start from April 2022. The business environment has
together as one, will take initiatives in various
changed greatly because of the COVID-19 pandemic
issues to meet the expectations of shareholders,and going forward we will have to overcome hurdles
customers and community members. We
greater than ever before. We believe that the mostsincerely ask for your continued guidance andimportant thing the Bank needs to do now is tosupport.
figure out how to overcome these high hurdles, toJuly 2021

Hitoshi Umeda
President (CEO)10

Medium Term Management Plan
Consulting Kodo Project 2022
~ Together towards the future –Closer and Deeper- ~Under the Medium-Term Management Plan commenced in FY2019, the Bank will proceed to “advanceconsulting that will continuously follow the path with customers” so as to become “a bank that continues tobe chosen, with an absolute presence indispensable to the area and our customers.” To do so, consulting
force will be put together by improving the quality of consulting personnel through “personnel
development where all employees will play a leading role” and “pursuit of low cost operation from
improved efficiency.”

Long Term Management Vision"A bank that continues to be chosen, with an absolute presence indispensable to the area and our customers"

Evolution to “Highly Profitable Consulting Bank”
Strengthencore customers

Pursuing Low-Cost
Operation

Expansion of Business
Operations and Earnings

Sustainable Growth for the Bank
Become genuine partners through co-creation~ Improving Customer Intimacy and Reliability ~Human Resources

Sales Strategy

Optimization

Ensuring Consulting System

Enhance Consulting

Ensuring Consulting

Train various consulting personnel
through OJT to foster self-sustained
growthShift from a superficial
understanding of customers topracticing a thorough understandingof the actual conditions

100% consulting stores throughthorough review of operations

Shift from training that is mainly
in-house to training throughinteraction with different types ofindustry

Shift from sporadic response toissues and needs to a business thatcreates a future together withcustomers

Achieve complete paperlessenvironment through progress indigitalization

Shift from a uniform working style toa more flexible working style

Shift from a focus differentiated byproducts and services to a businessposture differentiated by individualcompanies and customers

Shift to an early end of work system
by eliminating inefficiencies in thebusiness and administration

Target Management Index
Deposits(Non-consolidated)
2,781.6

2,700
2,600

（March 31,2022）

2,700.0

2,559.2

Net Income(Non-consolidated)

Loan and Bills Discounted(Non-consolidated)
Billions of yen, As of March 31

Billions of yen, As of March 31

System2,297.6

2,300
2,200

Millions of yen, Yeats ended March 31

2,300.0

2,159.2

5,000

2,500

2,100

4,000

2,400

2,000

3,000

2,300

1,900

2,000

2,200

1,800

1,000

2020

2021

2022

2020

ResultResultGoal

Result

6,000

6,000
4,679
4,260

2021

2022

2020

2021

2022

ResultGoal

ResultResultGoal

11

Chiba Kogyo Bank Sustainability Statement
We, the Chiba Kogyo Bank, Ltd., will work to realize management that takes into account value creation for avariety of stakeholders and to increase corporate value through the continuous and stable growth of the Bank bytackling “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 theregion’s economy, industry, and society.

Corporate Philosophy“Moving Forward with the Region, with Heartfelt Kindness Toward Customers”

Approach to Setting the Sustainability Key Issues
Based on the concept that as a regional financial institution, realizing sustainability for Chiba Prefecture will lead to thegrowth 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 asolution, so that we can make a further leap toward achieving a glistening Chiba that future generations can be proud of.

Key Issue

1
Key Issue

2
Key Issue

3

Revitalizing industry and creating appeal for Chiba
We will work to revitalize the local economy and create
new appeal for Chiba through initiatives such as
developing unique products that use local resources andnurturing 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 satisfactionand economic conditions for each individual.
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 through initiatives
that prepare the region for disasters and for prevention ofcrimes, the establishment of healthcare systems, and initiatives
that reduce impact on the environment.

By developing business activities with a long-term perspective based on the corporate philosophy, we willcontribute to achieving the SDGs adopted by the UN.

12

Sustainability Promotion Framework
Promotion Framework and Operation
The Board of Directors resolves important matters concerning the Bank’s sustainability in accordance withbasic policies regarding the handling of sustainability.
The Bank has established a Sustainability Promotion Committee chaired by the President which is
responsible for promoting sustainability initiatives.
A secretariat for the Sustainability Promotion Committee has been established within the Management
Planning Division.
When necessary, the secretariat provides the Board of Directors, Management Committee, and President
with reports on matters such as the status of committee activities.
Promotion Methods
In order to promote sustainability initiatives, the Bank formulates operations plans based on the
Sustainability Key Issues.
We put an emphasis on dialogue with stakeholders and strive to ensure that our sustainability initiatives
are in line with social norms and expectations.

Board of Directors（Resolutions on important matters）
Management Liaison Committee
Sustainability Promotion Committee（chaired by the President）

ReportSecretariat（Management Planning Division）

Personnel Division

Customer Service
Promotion
Division

Sales Planning
Division(Relevant divisions at headquarters)

13

Credit Supervision
Division

Major Sustainability Initiatives
Key Issue

1

Revitalizing industry and creating appeal for Chiba
We will work to revitalize the local economy and create
new appeal for Chiba through initiatives such as
developing unique products that use local resources andnurturing local industries.

Initiatives for Creating Regional Industry
Support for agri-food businesses
Chiba Prefecture is one of the best prefectures in Japan for agriculture,
forestry, and marine production, and we are working to create regional
industry by providing support for agri-food businesses, such as
businesses entering the agricultural sector.
Our agri-food business team includes a member who is a certified“Agricultural Management Advisor” and it provides support fordeveloping new products using local resources and for cultivating sales
channels. Also, for businesses that are entering agriculture from othersectors due to reasons such as diversifying operations, we provide
support including formulating plans for establishing agricultural
corporations or agritourism farms, selecting product varieties andcultivation systems, and cultivation technique support for raising seedlings and harvesting. Furthermore, we also carry out
a wide range of collaborative proposals in the welfare field, such as agricultural welfare programs that engage disabled andelderly people in agriculture to create places that help them live well and find employment.

Initiatives for Solving the Personnel Shortages due to the Declining Birthrate and Aging Population●Chiba Kogin “Cosmos Keiei Juku”
The Chiba Kogin “Cosmos Keiei Juku” was established and launched in
September 2004 with the objective of training successor managers at
the Bank’s customers. We provide a learning opportunity to private
students such as the young and next generation managers who will be
responsible for the future Chiba prefecture economy. The opening
ceremony for the 9th Chiba Kogin “Cosmos Keiei Juku” was held in May
2021.

●Responding to Human Resource Needs
The Bank has been selected as an indirectly subsidized business in the ”2020 Pioneering Human Resource Matching
Project” promoted by the Japanese Cabinet Office. This is the second consecutive year that we have been selected as anindirectly subsidized business in this project. The “Pioneering Human Resource Matching Project” was created as part of
the “Regional Human Resources Support Strategic Package” included in “the second phase of ‘the Cabinet Office’sComprehensive Strategy for Overcoming Population Decline and Vitalizing Local Economy.’” It aims to realize the growthand improve the productivity of regional companies by supporting initiatives for matching high-level management
personnel and other human resources through methods such as having regional financial institutions and otherorganizations investigate and analyze the human resources needs of regional companies and then coordinate withbusinesses such as employment agencies.
Also, in order to further strengthen our ability to respond to the human resource needs of customer companies, we areentering the paid job-placement service business (human resources referral operations). This is the first time a financial
institution in Chiba Prefecture has entered human resources referral operations from a bank itself, not from its affiliatedcompany. We are leveraging the manager-centric consulting capabilities we have cultivated to provide referral support
focused on management-level personnel.
Furthermore, we are also providing customer companies with consulting aimed at solving human resources strategy issues.
We conduct financial analysis and carry out questionnaires and interviews to ascertain how satisfied employees are with the
management of their organization and their workplace, and what kind of issues they recognize. Through these processes, we
provide support that ranges from devising improvement measures for issues concerning labor management, humanresources evaluations, and workloads, to formulating and implementing medium- to long-term action plans.
14

Major Sustainability Initiatives

Key Issue

2

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 satisfactionand economic conditions for each individual.

Financial Education for the Next Generation●Economics Koshien
We hold Chiba Tournament of the National High-School
Financial and Economic Quiz Championship "Economics
Koshien", which provide opportunities for high school students
who will lead the next generation to learn about finance andeconomics while having fun.
The Chiba Prefectural Chiba Senior High School team,participated as a representative of Chiba Prefecture, won thenational tournament (sponsored by Association for the
Promotion of Financial Literacy) held online on February 14,
2021.

●“Summer Kids School” summer camp
We hold the “Summer Kids School” for elementary school students in Chiba Prefecture. Children attending
this event learn about money and gain hands-on experience “working” at ZOZO Marine Stadium.
Unfortunately, the event in 2020 was canceled due to the spread of the COVID-19.
●A New Initiative for Tackling the Child Poverty Issue
We have begun to support efforts to tackle the child poverty
issue by giving a donation to Chiba Kodomo Ouendan, aspecified non-profit corporation that is addressing the issue
primarily by supporting children and young people being
raised under state care to become independent.
Although we have previously provided support for cultivating
future generations as part of our CSR activities, tackling thechild poverty issue, which has become increasingly importantin recent years, is a new initiative for the Bank.
Specifically, the Bank’s donation will be contributed into the“Children and Young People’s Future Fund,” which is managedby Chiba Kodomo Ouendan. The money will be used as“Emergency Support SOS” funding to support children who do
not qualify for public assistance systems and other types of
support. We intend to continue implementing this initiative onan annual basis going forward.

Start of Handling of Chiba Kogyo Bank SDGs Private Placement Bonds
On July 1, 2020, the Bank began handling “Chiba Kogyo Bank SDGs Private Placement Bonds”. This productresponds to our customers’ needs to endorse the intentions of the SDGs and contribute to solving issues on anational level. It involves us using part of the processing fees received when our customers issue corporate
bonds to make a donation to organizations and funds that are addressing the SDGs. In addition to ensuringlong-term, stable funding for such organizations and funds, it will also enable customers to publicly showcase
their approach to tackling the SDGs.
15

Key Issue

3

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 through initiatives
that prepare the region for disasters and for prevention ofcrimes, the establishment of healthcare systems, and initiatives
that reduce impact on the environment.

Participation in a Demonstration Test of “Auto Share” Car Sharing Business in Tateyama City
We are participating in a demonstration test of the “AutoShare” car sharing business launched by Idemitsu Kosan Co., Ltd.
in Tateyama City, and is utilizing ultra-small electric vehicles (EVs)that run with renewable energy with outstanding environmental
performance.
“Auto Share” is a car-sharing service that utilizes ultra-smallEVs, which are used as the Bank’s business vehicles on weekdays,
and parked at a car station near Tateyama Station on weekends
and holidays to be hired out as a car sharing vehicle for generaluse, serving as a means of transportation for local residents andtourists to go shopping or sightseeing.
This demonstration test started in August 2019 in Hida City and
Takayama City, Gifu Prefecture, and Tateyama City was thelocation of the second test in Japan. The test period is scheduled
to last until the end of March 2022.
The wrapping of the car used by the Bank is based on thecorporate color of bright pink, and the design is based on thepattern of “Maiwai,” a festive kimono worn traditionally in the
Boso area to celebrate a big catch, and was thought out by Chiba
University students, with which the Bank has formed anindustry-academia partnership.

Bicycle Reflectors Donation
We donate bicycle reflectors with a wish of protection against traffic accidents to new junior high school
students in Chiba Prefecture every year, and have donated a total of 406,400 such reflectors so far, over thelast 27 years.

Holding a Chiba Kogyo Bank Cosmos Theater Performance
We sponsored the “Parent and Child Opera Viewing Debut ‘Carmen - Legend of the Red Rose’” Projectstaged by the Chiba Prefectural Cultural Promotion Foundation as a Chiba Kogyo Bank Cosmos Theater
Performance.
This project aims to expose the children who will be responsible for the next generation to excellent culture
and art in order to create many moving experiences, nurture sensitive spirits, and provide them with
opportunities to appreciate the arts so that they can take care of the future of culture in Chiba. The “Parent
and Child Opera” has no age restrictions so anyone from the age of zero can participate. It uses approachable
opera works as a base to create “entry-level operas for parents and children to enjoy together” containing
content that even children can understand.

16

Regional Revitalization
Support for the Sosa City’s version of the “Quality Lifelong Living” urban planning project
Apart from financial support, the Bank cooperated with business partners having expertise in regional
regeneration and participated as the secretariat for the “Iigura Ekimae Chiku Community Association.”
As a result of discussion with members of the local community spanning a year, a business plan
incorporating multifaceted ideas was completed, and the construction of certified center for early childhood
education and care was completed in March 2018, which opened in April.
In March 2019, the special elderly nursing home was also completed, and progress is being made on thedevelopment of healthcare and nursing environment that allows multi generations to live in peace of mind.
Currently, the downtown residential zone and social zone are under construction and are scheduled to becompleted in FY2021. We will continue to support the financing and consulting proposals necessary for thisplan.

Certified center for early childhood education and care

Special elderly nursing home

4 zones in the business area of Sosa City's version of CCRC
Child rearing zone

Completed in FY2017

Certified centers for early childhood
education and care

Downtown residential zone

Set to open in FY2021

Serviced housing for elderly residents

Elderly residents welfare zone

Completed in FY 2018

Special elderly nursing home, etc.

Social Zone

Set to open in FY2021

Facilities that act as community hubs

Promotion of sports in the community
Together with local people, we support sports teams based in Chiba Prefecture and we will contribute to thevitalization and development of the region by promoting sports in the prefecture.
●Chiba Lotte Marines (Baseball)
Each year we sell “Marines Supporter Time Deposits” forwhich a preferred interest rate on deposits received is set
depending on the performance record of the Chiba Lotte
Marines. These are well received by many customers each time.
On November 3, 2020, we also sponsored the game between
the Chiba Lotte Marines and the Fukuoka SoftBank Hawks held
at ZOZO Marine Stadium as Chiba Kogyo Bank Match Day.
●Chiba Jets Funabashi (Basketball)
An amount of the deposit balance of “Go! Chiba Jets!
Supporter Time Deposits” that we handled up to March 31,
2021, which was calculated using a rate based on theperformance record of Chiba Jets Funabashi, was donated tothe team. Chiba Jets Funabashi supporters deposited a total of¥10.7 billion, and as the team won the B.League championship,
the rate was 0.01%, resulting in a donation of ¥1.07 million. The
donation is being used to help the team carry out activities that
contribute to the region.

17

Chiba Prefecture – Our Business Base
Chiba Prefecture, the Chiba Kogyo Bank’s businessbase, is located adjacent to Tokyo, and plays animportant role in the functions of the Greater Tokyo
Area.
Industry inside the prefecture is extremely active
and well-balanced, and the prefecture is in the top
rank nationally -- in agriculture, marine products,
industrial products, commercial trade and also grossprefectural product. Chiba Prefecture is also home to
many of Japan’s preeminent facilities, including
Makuhari Messe, one of Japan’s largest convention
facilities, and Narita International Airport.

In addition, with the enhanced development of theTokyo Bay Aqua-Line Expressway (Trans-Tokyo Bay
Highway connecting Chiba Prefecture and Kanagawa
Prefecture) and the beltway connecting the corecities of the Greater Tokyo Area, accessibility to themetropolitan center has been greatly improved.
Chiba prefecture has plenty of potential to sustain
and increase its growth at this time, amid a situation
where it is continuously expected to reap economic
benefits, and has also been steadily developing its
expressways and other infrastructure.

Ibaraki
Saitama

NaritaTokyo
HanedaInternational
AirportTokyo BayAqua-Line

Chiba
City

Kanagawa

Chiba

Population

6.25Million\

Balance of Deposits\

33.2Trillion

Balance of Loans\

15.4Trillion

Gross Prefecture Product(nominal)\

21.1Trillion

6 th among
Japanese Prefectures

6 th among
Japanese Prefectures

7 th among
Japanese Prefectures

7 th among
Japanese Prefectures

Agricultural Output

Fishery Production Volume

Manufacturing Output

Retail Sales

385Billion

100K Tons

4 th among

8 th among

8 th among

Japanese Prefectures

Japanese Prefectures

Japanese Prefectures\

12.5Trillion\

0.8Trillion

7 th among
Japanese Prefectures

Source: 2019 Population Estimates, Report on Internal Migration in Japan, Statistics Bureau of Japan, Mar.31.2021 Bank of Japan, Annual Report on
Prefectural Accounts, 2017 Cabinet Office, 2019 Statistics of Agricultural Income Produced, 2020 Production Statistics for the Fishing and
Aquaculture industries, Ministry of Agriculture, Forestry and Fisheries, Census of Manufactures 2019, Current Survey of Commerce 2020,
Ministry of Economy, Trade and Industry

18

Corporate Governance
Basic views
The Bank’s corporate governance framework enables us to make decisions in a manner that istransparent, 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 oneof our key managerial challenges, in order to put the basic values of our corporate philosophy into practicewith respect to “Moving Forward with the Region, with Heartfelt Kindness Toward Customers.”

Major Initiatives for Improving Corporate Governance

2014
2015
2016

Abolition of retirement benefits for directors (and other officers),
Introduction of share remuneration-type stock options
Formulation of the Basic Policy Regarding Corporate Governance,
Appointment of one Outside Director
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

Corporate Governance System
Organizational form：A Company with an Audit & Supervisory Board
Advisory body to the Board of Directors ： Governance Committee （ Equivalent to Nominating andCompensation Committee）, Compliance Committee

Board of Directors

Audit & Supervisory Board

Governance Committee

9

4

8

3

2

5

Outside Directors

Outside Audit & Supervisory
Board members

Outside Directors andOutside Audit & Supervisory
Board members

19Board of Directors

Management Liaison Committee
Number of meetings in FY2020 ： 49 times

Number of meetings in FY2020 ： 15 times
It is management’s highest decision-making body andsupervisory body which determines management policies
and other matters, receives reports on the status ofbusiness execution, and supervises such in accordancewith rules such as the Board of Directors rules.
The Board of Directors consists of nine Directors ofwhich three are appointed as Outside Directors.

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 andspeed up business execution.

Governance Committee

Compliance Committee

Number of meetings in FY2020 ： 7 times

Number of meetings in FY2020 ： 7 times

Established to increase the efficiency of the Board of
Directors as part of a process for making decisions onimportant matters relating to management, such as officer
personnel affairs and compensation. It aims to actively
incorporate the external knowledge of independent
officers and ensure independence and objectivity.
The members of this committee comprise three
Representative Directors (inside Directors), three outside
Directors, and two outside Audit & Supervisory Board
Members to give a total of eight people. It is chaired by anindependent outside Director.

Based on recognition of the highly public
nature and heavy social responsibilities ofbanks, we have positioned compliance as afundamental principle of management. We haveestablished the Compliance Committee andstrive to take a Bank-wide approach tocompliance and to determine any problem
points.

Audit & Supervisory Board

Accounting Auditor

Number of meetings in FY2020 ： 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 ofinternal control systems including the status ofdecision-making by Directors, compliance with laws andregulations, risk management and disclosure of corporate
information in accordance with the Auditing Standards.

We have appointed Ernst & Young ShinNihon LLC
as our accounting auditor and receive audits from afair standpoint. We are expanding and strengthening
the auditing function of audits by the accounting
auditor etc. in order to verify the effectiveness andefficiency of operations, the reliability of financial
statements, and the appropriateness andeffectiveness of internal controls such as compliancewith laws and regulations.

Corporate Governance System Structure20

Board of Directors, Audit & Supervisory Board Members and Executive Officers(As of June 25, 2021)
Directors
Apr. 1980
Aug. 1996

May 2004

Joined the Bank
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

June 2004

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

July 2003

Chairman of the Board

Shunichi Aoyagi

July 2012
Apr. 2014

President (CEO)

Hitoshi Umeda

General Manager of Yakuendai Branch
Associate Director-General, General Manager in charge of Management Planning
Division
Associate Director-General, General Manager of Management Planning Division

June 2014

Executive Officer, General Manager of Management Planning Division

Apr. 2016

Executive Officer, General Manager of Sales Division of Head Office

May 2016

Managing Executive Officer, General Manager of Sales Division of Head Office

Apr. 2017Managing Executive Officer

June 2018

Managing Director, Managing Executive Officer

Apr. 2019

President (CEO) (current position)

April 1983
Apr. 2002

General Manager of Capital Markets Department IV of Mizuho Securities Co., Ltd.

Feb. 2008

Joined The Fuji Bank, Limited (current Mizuho Bank, Ltd.)

June 2014

General Manager of Funabashi Branch, Mizuho Bank, Ltd.
Executive Officer of Mizuho Investors Securities Co., Ltd. (current Mizuho Securities Co.,Ltd.)
President and Representative Director of Defined Contribution Plan Services Co., Ltd.

May 2017

Managing Executive Officer of the Bank

June 2017

Vice President (COO) (current position)

Apr. 1981

Joined the Bank

July 2007

Associate Director-General, General Manager in charge of Credit Supervision Division

Aug. 2010

Vice President (COO)

Ryuichi Matsumaru

Senior Managing Director
Senior Executive Officer

June 2009

Executive Officer, General Manager of Credit Supervision Division

Apr. 2012

Executive Officer, General Manager of Sales Division of Head Office

Apr. 2013

Executive Officer

May 2013

Managing Executive Officer

June 2016

Managing Director, Managing Executive Officer

June 2018

Senior Managing Director, Senior Executive Officer (current position)

Yoshiaki Tateno

21

Directors
Apr. 1986
Apr. 2010

Managing Director
Managing Executive
Officer

Apr. 2016

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

June 2016

Executive Officer, General Manager of Management Planning Division

May 2017

Managing Executive Officer, General Manager of Management Planning Division

Apr. 2019

Managing Executive Officer

June 2020

Managing Director, Managing Executive Officer (current position)

Apr. 1987
Nov. 2004

Joined the Bank

Apr. 2007

General Manager of Urayasu Branch

Apr. 2010

Deputy General Manager of Sales Management Division

Yasumitsu Kanda

General Manager of Regional Corporation Department of Kashiwa Branch

Apr. 2012

General Manager of Goi Branch

July 2013
Apr. 2014
Managing Director
Managing Executive
Officer

Apr. 2015

Associate Director-General, General Manager of Goi Branch
Associate Director-General, General Manager in charge of Branch Support Division, andManager 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

Katsumi Shirai

Apr. 2016
May 2016

Apr. 2020

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

June 2020

Managing Director, Managing Executive Officer (current position)

Apr. 201922

Board of Directors, Audit & Supervisory Board Members and Executive Officers (As of June 25, 2021)

Outside Directors
Apr. 1975
Apr. 2000

Director

Apr. 2008

Joined Chiba Prefectural Government
Assistant General Manager of Children and Families Division of Health and Welfare
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

Hisako Toya

Apr. 2009

Director of Health and Welfare Department

Apr. 2011

Director of Environmental and Community Affairs Department

Mar. 2013
Apr. 2013

Retired from Chiba Prefectural Government
Executive Advisor of Federation of National Health Insurance Associations of Chiba
Prefecture
Outside Director of the Bank (current position)

Apr. 2002
Apr. 2004
Apr. 2007

June 2015

Apr. 1978

Apr. 2002

Joined Nippon Telegraph and Telephone Public Corporation (current Nippon Telegraphand 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

May 2004

Deputy General Manager of Payment Solutions Sector

June 2005

Senior Vice President

June 2011

Director, Executive Vice President

June 2012
June 2015
June 2017

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)

June 2021

Advisor of Japan Information Processing Service Co., Ltd. (current position)

Apr. 1977
Apr. 2002

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.

June 2001

Director

Eiji Yamada

Apr. 2003

Apr. 2004
Director

Tetsuro Sugiura

Apr. 2005
Apr. 2007
July 2011
Apr. 2014
June 2019Nov.2019

Vice-chairman
Senior Director of Japan Economic Research Institute
Director and Research Committee Chairman of Japan Economic Research InstituteOutside Director of the Bank (current position)
Research Committee Chairman of Japan Economic Research Institute (current
position)

23

Audit & Supervisory Board Members
Apr. 1982
Nov. 2002
Apr. 2005
Mar. 2006
Feb. 2009

June 2009

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. 2009
Standing Audit &Supervisory Board
MemberShigeto Kato

Standing Audit &Supervisory Board
MemberHitoshi Yokoyama

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 of Mizuho Bank, Ltd.

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

General Manager of Financial Markets Division

July 2010
Oct. 2010

Associate Director-General, General Manager of Financial Markets Division

Apr. 2013

Associate Director-General, General Manager of Risk Management Division

June 2014

Executive Officer, General Manager of Risk Management Division of the Bank

General Manager of Yotsukaido Branch

Associate Director-General, General Manager of Kashiwa Branch

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)

24

Board of Directors, Audit & Supervisory Board Members and Executive Officers (As of June 25, 2021)

Audit & Supervisory Board Members

Outside Audit &Supervisory Board
MemberJunichi Sakamoto

Apr. 1981

Joined Yasuda Fire and Marine Insurance Co.,Ltd. (current Sompo Japan Insurance Inc.)

Apr. 2006

General Manager, Market Development Office, Sompo Japan Insurance Inc.

Apr. 2008

General Manager, North Hokkaido Branch

Apr. 2010

General Manager, Kobe Branch

Apr. 2012
Apr. 2013

Executive Officer and General Manager, Ibaraki Branch,
Executive Officer; Deputy General Manager, Kanto Area; General Manager, Ibaraki
Branch; and General Manager, South Ibaraki BranchPresident and Representative Director, Sompo Business Solutions Inc.

Apr. 2014
Apr. 2018
June 2019

April 1983

Outside Audit &Supervisory Board
MemberTakashi Kikugawa

Chairman of the Board
Outside Audit & Supervisory Board Member of the Bank (current position)

Apr. 2001

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

Jan. 2004

General Manager of Shinjuku Branch of Meiji Yasuda Life Insurance Company

Apr. 2006

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

Full-time Advisor (current position)

June 2021

Outside Audit & Supervisory Board Member of the Bank (current position)

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

Managing Executive Officers
Akio Shimoma
Hiroshi Tanaka
Takashi Furuyama
Osamu Koda
Akira Miyamoto

Executive Officers
Kouichi Kyoumasu
Masahiko Miyamoto
Tsuyoshi Kanasugi
Tsuyoshi Aoki
Shoichi Mori
Zenji Yoshikoshi
Kunito Ozeki

25

Consolidated Subsidiaries (As of March 31, 2021)
Chiba Kogin Card Service Co., Ltd.
Main business line:
Established:
Capital:Equity share of the Bank and subsidiaries:

Credit card business, guarantees of housing and other loans
April 1979¥100 million
100.0%

Chiba Kogin Business Service Co., Ltd. *Main business line:
Established:
Capital:Clerical operations for the Bank
January 1986
¥10 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:
Established:
Capital:Equity share of the Bank and subsidiaries:

Development, sale and maintenance of computer systems
July 1991¥30 million

55.0%* Chiba Kogin Business Service Co., Ltd. was absorbed into the Bank on April 1, 2021.

Organization Chart (As of June 30, 2021)
Risk Management Division
General Meeting of Shareholders

Board of Directors

General Secretariat
Compliance Committee

Management Planning Division

Governance Committee

Personnel DivisionTokyo Liaison Office
ChairmanPresident (CEO)Deputy President (COO)

General Administration Division
Management
Liaison Committee

Sales Unit
Sales Planning Division

Senior Managing Director

Sales Support Division
Managing Director
Sales Promotion Division
Directors
Customer Service Promotion Division
Credit Supervision Division
Treasury Division
Financial Markets Division
Business Procedures and Operations Unit
Business Procedures and Operations Division
Intensive Operation Division
Board of Corporate Auditors
Standing Corporate Auditors

Auditing DivisionCorporate Auditors

Office of Corporate Auditors

26

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

2017

2018

2019

2020

2021

¥52,255¥50,525¥50,831¥50,391¥49,986$451,463

9,322

9,489

8,335

6,725

7,224

65,246

6,388

6,771

5,183

4,530

4,763

43,018

3,631

7,934

9,592

(1,717)

16,770151,463

150,724

156,621

172,583

166,892

182,491

1,648,221

2,694,580

2,739,444

2,814,394

2,851,390

3,248,236

29,337,392

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)

1,465.62

1,554.72

1,674.88

1,687.69

1,938.72

17.51

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

67.41

78.79

53.36

51.75

57.34

0.52

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

45.34

52.35

33.61

20.27

17.56

0.16

5.48

5.59

6.01

5.73

5.50

8.68

8.40

8.70

8.26

8.49

4.37

4.49

3.21

2.72

2.78

9.12

5.83

5.60

4.88

5.17

23,856(19,686)

30,659(17,954)

256,027

2,312,383(10,978)

14,263(4,367)

6,526(28,049)(253,333)

273(2,060)1,184(3,998)(1,261)(11,389)¥127,073¥119,772¥147,441¥132,233¥359,075$3,243,091

1,442[1,095]

1,461[1,057]1,464[1,015]

1,452
[950]

1,428
[891]

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.
4.

U.S. dollar amounts are the yen equivalent, calculated, for convenience only, at a rate of ¥110.72 = U.S. $1, the approximate Tokyo
foreign exchange market rate as of March 31, 2021.
In the accounting treatment for consumption taxes and local taxes of the Bank and its consolidated subsidiaries, the tax-excluded
method is used with the exception of some consolidated subsidiaries.
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).

27

Business Performance (Consolidated)
In FY2020, the Japanese economy received a severe blow due to the suppression of socio-economic activity
accompanying the spread of COVID-19 infections. Although there were signs of recovery in some areas due to various
economic measures taken by the government and other actions, another wave of infections means that the outlook
remains uncertain. In the economy of Chiba Prefecture, the base of the Bank’s business, business conditions declined
due to factors such as people refraining from leaving home for non-essential and non-urgent reasons, the cancellationof large-scale events, and the suppression of economic activity.
Under such a financial and economic environment, the Bank provided support as a true partner for local customer
companies based on the Medium Term Management Plan that started in April 2019. For corporate and sole proprietor
customers who have been impacted by the COVID-19 pandemic and its prolongation, we actively engaged in various
consulting operations aimed at business continuity, such as support for securing finance, applications for subsidies,
mediation with sales destinations, establishment of telework frameworks, and creation of management plans.
To safeguard the health and safety of customers and bank employees as the highest priority, we are continuing
operations while also seeking to prevent the spread of COVID-19 infections through measures such as setting up acrylic
panels on service counters and in reception spaces to prevent droplet infection.
As a result, the Group’s financial position and performance for FY2020 were as follows.
Ordinary income decreased ¥404 million year on year to ¥49.986 billion, due to a decrease in interest income
despite an increase in fees and commissions. Ordinary expenses decreased ¥904 million year on year to ¥42.761 billion,
primarily due to the cost reduction effect by efficiency improvement. As a result, the Group posted ordinary profit of¥7.224 billion, an increase of ¥0.499 billion year on year. Profit attributable to owners of parent increased ¥233 million
year on year to ¥4.763 billion.
Regarding the business performance by segment, ordinary income from banking business decreased ¥1.095 billion
year on year to ¥40.476 billion, while its segment profit increased ¥729 million year on year to ¥6.645 billion. Ordinary
income from leasing business increased ¥470 million year on year to ¥8.885 billion, while its segment profit increased¥64 million to ¥154 million. Ordinary income from credit guarantee and credit card business decreased ¥69 million
year on year to ¥1.950 billion, while its segment profit decreased ¥38 million to ¥971 million. Ordinary income fromother business segment decreased ¥203 million year on year to ¥2.011 billion, while its segment profit decreased ¥165
million year on year to ¥79 million.
Deposits totaled ¥2,768.8 billion, an increase of ¥221.8 billion year on year, primarily due to an increase in individual
deposits. Loans and bills discounted totaled ¥2,295.3 billion, an increase of ¥138.4 billion year on year, as a result ofefforts to discover latent financing needs through consulting sales activities, and proactive efforts toward financial
needs of business partners. Securities holdings totaled ¥528.8 billion, an increase of ¥40.9 billion year on year.
As a result, total assets increased ¥396.8 billion year on year to ¥3,248.2 billion, and total net assets increased ¥15.5
billion year on year to ¥182.4 billion at the end of FY2020.
The consolidated equity ratio (under Japanese standards) at the end of FY2020 rose 0.23 percentage points from theend of FY2019 to 8.49%.

28

Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of U.S.
dollars)*(Millions of yen)
As of March 31, 2020

As of March 31, 2021

¥132,574
97
110
487,853
2,156,861
5,288
41,997
20,628
6,712
12,144
62
1,707
2,920
2,471
59
388
3,978
7,127
(8,046)
2,851,390¥359,415
97
132
528,8442,295,318
3,377
39,691
20,186
6,380
12,048
63
1,694
3,212
2,824
4
383
505
6,193
(8,737)
3,248,236$3,246,161
876
1,192
4,776,409
20,730,835
30,500358,481
182,316
57,623
108,815569
15,30029,01025,506
36
3,459
4,561
55,934(78,911)29,337,392

2,547,017
68,0004,353
4,589
21,49056
22,8238,356

2,768,896
108,500
4,638
145,20243
23,741
5,446

25,008,092
979,949
41,8891,311,434
388
214,424
49,187

63

58

524

483
134
7,127
2,684,497

295
2,729
6,193
3,065,745

2,664
24,64855,934
27,689,171

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
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
Call money and bills soldPayables under securities lending transactions
Borrowed money
Foreign exchanges
Other liabilities
Retirement benefit liability
Provision for retirement benefits for directors(and other officers)
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

62,12015,80280,413(947)
157,388
8,661(2,563)
6,097
83
3,323
166,892¥2,851,390* Please refer to the note 1 on page 27.

2962,12016,172
83,613(937)
160,969
18,720(928)
17,792
94
3,635
182,491¥3,248,236

As of March 31, 2021

561,055
146,062755,175(8,463)
1,453,839
169,075(8,382)
160,694849
32,831
1,648,221$29,337,392

(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, 2020

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2020

¥50,391¥49,986$451,463

28,641

27,205

245,710

Interest on loans and discounts

21,504

21,783

196,740

Interest and dividends on securities

6,778

5,123

46,270

1

(0)

(0)

Ordinary income
Interest income

Interest on call loans and bills boughtInterest on deposits with banks

98

155

1,400

Other interest income

258

143

1,292

Fees and commissions

9,819

10,833

97,841Other ordinary income

1,001

535

4,832

Other income

10,92911,411103,062

Reversal of allowance for loan losses

545

-

-

Recoveries of written off receivables

1,216

655

5,916

Other

9,167

10,755

97,137

Ordinary expenses

43,66642,761

386,208

715

441

3,983

Interest expenses

312

257

2,321

Interest on negotiable certificates of deposit

Interest on deposits

7

4

36

Interest on call money and bills sold

80

14

126

Interest on payables under securities lendingtransactions

127

26

235

Interest on borrowings and rediscounts

184

136

1,228

2

1

9

Fees and commissions payments

4,032

3,901

35,233

Other ordinary expenses

1,211

524

4,733

Other interest expenses

General and administrative expenses

26,02025,743

232,505

Other expenses

11,686

12,151

109,745－1,884

17,016

Other

11,686

10,26692,720Ordinary profit

6,725

7,224

65,246

52

129

1,165

Provision of allowance for loan losses

Extraordinary loss
Loss on disposal of non-current assets

49

23

208

Impairment loss

3

105

948

Profit before income taxes

6,672

7,095

64,081

Income taxes - current

502

1,099

9,926

1,598

1,089

9,836

Total income taxes

Income taxes - deferred

2,101

2,188

19,762

Profit

4,571

4,907

44,319

41

143

1,292

¥4,530¥4,763$43,018

Profit attributable to non-controlling interests
Profit attributable to owners of parent* Please refer to the note 1 on page 27.

30

(Consolidated Statements of Comprehensive Income)(Thousands of U.S.
dollars)*(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2021

¥4,571(6,289)¥4,907$44,319

11,863

107,144(5,616)

10,22892,377

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
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 27.

31

(672)

1,635

14,767¥(1,717）¥16,770$151,463(1,759)16,458

148,645

41

312

2,818

(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2020
(Millions of yen)

Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

62,12017,798Retained earnings

Treasury shares

76,942

Total shareholders’equity(15)

156,845

Changes during period
Dividends of surplus(1,059)(1,059)Profit attributable toowners of parent

4,530

4,530

Purchase of treasury shares(2,939)(2,939)4

6

11(2,000)2,000－

Disposal of treasury shares
Cancellation oftreasury shares
Net changes in items otherthan shareholders’ equity－(1,995)

3,470

(932)

543

62,12015,80280,413(947)

157,388

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
income14,277(1,891)

12,386

ShareacquisitionrightsNon-controllinginterests

Total net assets

69

3,281

172,583

Changes during period
Dividends of surplus(1,059)Profit attributable toowners of parent

4,530

Purchase of treasury shares(2,939)

Disposal of treasury shares

11

Cancellation oftreasury shares
Net changes in items otherthan shareholders’ equity－(5,616)(672)(6,289)13

41(6,234)

Total changes during period(5,616)(672)(6,289)13

41(5,690)

Balance at end of period

8,661(2,563)

6,097

83

3,323

166,892

32

Fiscal year ended March 31, 2021
(Millions of yen)

Shareholders’ equity
Capital surplus

62,12015,802Issuance of new shares

1,183

1,183

2,366

Transfer from share capitalto other capital surplus(1,183)

1,183−

Balance at beginning of period

Retained earnings

Treasury shares

Total shareholders’equityShare capital

80,413(947)

157,388

Changes during period

Dividends of surplus(1,563)(1,563)

Profit attributable toowners of parent

4,763

4,763

Purchase of treasury shares(2,000)(2,000)310

14(2,000)2,000－

Disposal of treasury shares
Cancellation oftreasury shares
Net changes in items otherthan shareholders’ equity
－

369

3,200

10

3,580

62,12016,172

83,613(937)

160,969

Total changes during period
Balance at end of period

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

8,661

Total
accumulated
othercomprehensive
incomeRemeasurementsof defined benefit
plans(2,563)

6,097

Share
acquisitionrightsNon-controllinginterests

Total net assets

83

3,323

166,892

Changes during period
Issuance of new shares

2,366Transfer from share capitalto other capital surplus－

Dividends of surplus(1,563)

Profit attributable toowners of parent

4,763

Purchase of treasury shares(2,000)

Disposal of treasury shares

14

Cancellation oftreasury shares
Net changes in items otherthan shareholders’ equity－
10,059

1,635

11,69411

312

12,018

Total changes during period

10,059

1,635

11,69411

312

15,598

Balance at end of period

18,720(928)

17,792

94

3,635

182,49133

Fiscal year ended March 31, 2021
(Thousands of U.S. dollars)*Shareholders’ equity
Capital surplus

561,055

142,720

Issuance of new shares

10,685

10,68521,369Transfer from share capitalto other capital surplus(10,685)

10,685−

Balance at beginning of period

Retained earnings

Treasury shares

Total shareholders’equityShare capital

726,273(8,553)

1,421,496

Changes during period

Dividends of surplus(14,117)(14,117)

Profit attributable toowners of parent

43,01843,018Purchase of treasury shares(18,064)(18,064)

27

90

126

(18,064)

18,064－

Disposal of treasury shares
Cancellation oftreasury shares
Net changes in items otherthan shareholders’ equity
－

3,333

28,90290

32,334561,055

146,062755,175(8,463)

1,453,839

Total changes during period
Balance at end of period

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
income78,224(23,148)

55,067

Balance at beginning of period

ShareacquisitionrightsNon-controllinginterests

Total net assets

750

30,013

1,507,334

Changes during period
Issuance of new shares

21,369Transfer from share capitalto other capital surplus－

Dividends of surplus(14,117)

Profit attributable toowners of parent

43,018Purchase of treasury shares(18,064)

Disposal of treasury shares

126

Cancellation oftreasury shares
Net changes in items otherthan shareholders’ equity－
90,851

14,767

105,618

99

2,818

108,544

Total changes during period

90,851

14,767

105,618

99

2,818

140,878

Balance at end of period

169,075(8,382)

160,694849

32,831

1,648,221* Please refer to the note 1 on page 27.

34

(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, 2020
March 31, 2021
March 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
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 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 call money
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 sales of securities
Proceeds from redemption of securities
Purchase of tangible fixed assets
Proceeds from sales 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 27 .

35

¥6,672
1,947
3(1,417)414¥7,095
2,221
105
691
(2,909)$64,081
20,060948
6,241(26,273)

0

(5)

(45)

(256)
(28,641)
715
2,505
(218)
49
(7)
(72,345)
47,942(4,500)(188)(27,205)
441
(229)
(125)
23
(22)
(138,457)
221,878
40,500(1,698)(245,710)
3,983(2,068)(1,129)208(199)(1,250,515)
2,003,956
365,788

2,901

123,711

1,117,332

317

2

18

(87)
(6,437)(2,307)(8)
28,988(720)
7,038(17,450)(604)
100(17,954)(4,353)
49
1,911
(12)
27,151(483)
3,824
255,614(628)
1,041
256,027(39,315)443
17,260(108)
245,222(4,362)
34,5382,308,652(5,672)9,402
2,312,383(129,776)
65,62572,670(809)－(1,183)6,526(100,959)
32,42642,641(961)
12(1,208)(28,049)(911,841)
292,865
385,125(8,680)108(10,910)(253,333)－(2,939)0(1,059)(3,998)218(15,208)
147,441¥132,233

2,302(2,000)0(1,563)(1,261)
125
226,842
132,233¥359,075

20,791(18,064)0(14,117)(11,389)
1,129
2,048,790
1,194,301$3,243,091

- Cash Flows
Cash flows during FY2020 and their causes are as follows.
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥256.0 billion (an increase of ¥273.9 billion from ¥17.9 billion used in
FY2019). The main contributory factors were ¥7.0 billion in profit before income taxes, an increase of ¥138.4 billion in loans andbills discounted, an increase of ¥221.8 billion in deposit and an increase of ¥123.7 billion in borrowed money.

Cash flows from investing activities
Net cash used in investing activities amounted to ¥28.0 billion (a decrease of ¥34.5 billion from ¥6.5 billion provided by FY2019).
The main contributory factors were ¥75.0 billion in proceeds from sales and redemption of securities, and ¥100.9 billion inpurchase of securities.

Cash flows from financing activities
Net cash used in financing activities amounted to ¥1.2 billion (an increase of ¥2.7 billion from ¥3.9 billion used in FY2019). The
main contributory factors were ¥2.0 billion expended on the purchase of treasury shares. As a result, cash and cash equivalents at
the end of FY2020 amounted to ¥359.0 billion (an increase of ¥226.8 billion year on year).

Major Shareholders (Common Stock) (As of March 31, 2021)
Number of Shares
Owned

Name

Proportion of Total Shares(%)

Mizuho Bank, Ltd.

9,583,910

16.17

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

3,757,900

6.34

Custody Bank of Japan, Ltd. (trust account)

2,012,000

3.39

Chiba Kogyo Bank Employee Ownership

1,283,017

2.16

Sakamoto Feeds Co., Ltd.

1,249,700

2.10

Meiji Yasuda Life Insurance Co.

1,158,200

1.95

Custody Bank of Japan, Ltd. (trust account-9)

1,028,700

1.73

Mizuho Trust & Banking Co., Ltd.

926,800

1.56

DFA Intl Small Cap Value Portfolio(Standing proxy: Citibank, N.A., Tokyo Branch)

862,100

1.45

Custody Bank of Japan, Ltd. (trust account-5)

770,100

1.29

Note: The proportion of the number of shares owned to total shares was calculated after deducting treasury shares (2,977,701 shares).

*This document follows the Annual Select format for English-language disclosure developed by ZAIHON, INC. to increase the level of convenience of investors outside Japan based onJapanese-language statutory disclosure material, timely disclosure material prescribed by securities exchanges and voluntarily disclosed IR material. Annual Select is a registeredtrademark of ZAIHON, INC. Reproduction or copying without prior permission is prohibited.

*

While every best effort has been made to provide a translation meeting the quality standards required of professionals, 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.

36