Contents
Chiba Prefecture – Our Business Base········································································································ 01
Corporate Profile ········································································································································ 02
Corporate Outline ······································································································································ 02
Message from the President ······················································································································ 03
Medium Term Management Plan ·············································································································· 04
Basic Rationale behind Promoting Region-Based Financing ······································································ 05
Business Highlights ····································································································································· 05
Topics ························································································································································· 06
Corporate Social Responsibility (CSR) ········································································································ 06
Summary of Selected Financial Data (Consolidated) ················································································· 07
Business Performance (Consolidated)········································································································ 08
Consolidated Financial Statements ············································································································ 09
Consolidated Subsidiaries ·························································································································· 18
Organization Chart ····································································································································· 18
Board of Directors, Corporate Auditors and Executive Officers································································· 19
Major Shareholders (Common Stock) ········································································································ 19

Chiba Prefecture – Our Business Base
Chiba Prefecture, the Chiba Kogyo Bank’s business base, is located adjacent to Tokyo, and plays an importantrole 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 gross prefectural
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 the Tokyo Bay Aqua-Line Expressway (Trans-Tokyo Bay Highway connecting Chiba Prefecture
and Kanagawa Prefecture) and the beltway connecting the core cities of the Greater Tokyo Area, accessibility to
the metropolitan center has been greatly improved, and thus the number of sightseeing visitors to Chiba
Prefecture is on an increasing trend. As preparations advance for the Tokyo Olympics and Paralympics in 2020,
Chiba Prefecture is a prospering market, and is predicted to grow further in the future.

IbarakiPrefecture

SaitamaPrefecture

Tokyo

Narita International
Airport

Chiba
City

Haneda Airport

Kanagawa
Prefecture

Tokyo BayAqua-Line

Chiba
Prefecture

Population

6.22Million

Balance of Loans

Balance Deposits¥

27.2Trillion¥

13.3Trillion

６th among

６th among7 th among

Japanese Prefectures

Japanese Prefectures

Japanese Prefectures

Agriculcural Output

Cach Quantities in Marine

Shipments of Manufactured
Products¥

Fishery

Gross Prefenture Product（nominal）¥

19.8Trillion

６th amongJapanese Prefectures
Large-Scale Retail Sales

977Billion

414Billion

135K Tons¥

13.8Trillion¥

3 th among

7 th among
Japanese Prefectures

６th amongJapanese Prefectures

7th amongJapanese Prefectures

Japanese Prefectures

Source: Preliminary Counts of the 2015 Population Census:Ministry of Internal Affairs and Communications, (Mar.31,2016)Bank of Japan,
Annual Report on Prefectural Accounts(2013): Cabinet Office, Statistics of Agricultural Income Produced(2013), Survey on Marine Fishery Production(2014):
Ministry of Agriculture, Forestry and Fisheries, Censusu of Manufacturers(2014), Current Survey of Commerce(2014): Ministry of Economy, Trade and Indusry

1Corporate Profile
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- andmedium-sized enterprises in Chiba Prefecture” and opened forbusiness in Chiba City, Chiba Prefecture.
By putting into practice its corporate philosophy of “Moving
Forward with the Region, with Heartfelt Kindness Toward
Customers,” the Bank has gained trust from regional customers andhas promoted community-based finance rooted in the regional area
and contributed to the local economy and local society, striving to be“a bank that continues to be chosen, with an absolute presence
indispensable to the area and our customers.”

The Chiba Kogyo Bank, Ltd. H.O.
Chiba City

Corporate Outline (As of March 31, 2016)
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

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:73

Number of Employees:

1,307

Stock Exchange Listing:

1st Section of Tokyo Stock Exchange

Paid-in 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:

12,458The Chiba Kogyo Bank, Ltd. is an affiliate under the equity method of Mizuho Financial Group, Inc.
CapitalPercentage of
Name
Location
Business category(Millions of Founded voting rights
yen)of the Bank
Mizuho Financial
Group, Inc.
Note:

Chiyoda-ku,
Tokyo

Holding company for
financial service companies

2,255,790

Jan. 8,2003

16.9%(16.9%)

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

2

Message from the President

Shunichi Aoyagi
President (CEO)As always, I would like to extend my sincerest appreciation for your patronage of the Chiba Kogyo Bank.
On this occasion, we have formulated the “Annual Report 2016,” which highlights the Bank’s management
activities and operating results for FY2015, and provides an overview of our CSR and other initiatives. We would
be pleased if stakeholders could take the time to peruse this document.
The economy of Chiba Prefecture in FY2015 continued to be on a recovery track in general, despite somepartial weakness, while maintaining low bankruptcy numbers and continuing on an upward trend in theemployment environment.
Against this financial and economic backdrop, the Bank took up the challenge of the final year of theprevious three-year (FY2013-2015) Medium-Term Management Plan, named the “2nd Stage of Transformation
and Growth Strategy,” and aggressively responded to funding needs of regional customers as well as strove todemonstrate consulting capabilities, and as a result, the Bank was able to achieve many targets such as loanbalance, centering on financing to small and medium enterprises, and residential loans.
In realizing this achievement, we would like to express our sincerest gratitude for goodwill we received fromour customers, shareholders and everyone in the region.
Chiba Prefecture, the Bank’s business base, is a prospering market blessed with a location adjacent to thecapital city, and which we expect to grow further as preparations advance for the Tokyo Olympics andParalympics to be held four years hence. Meanwhile, in the future business environment, business challenges ofprefectural small and medium enterprises and individual customer’s needs will become even more diverse andsophisticated, while an excessive supply of products and services through financial competition expansion,
including other business lines, is also predicted, due to the progress of the falling birthrate and aging population,
population decline in the prefecture, prolonged low interest rates, and other factors.
Based on such business environment, in April 2016 the Bank started its new Medium-Term Management
Plan, “Consulting Kodo Project 2019.” Positioning three years from this year as the stage toward realization of“Establishment as a Consulting Bank,” the configuration that the Bank must strive to become, and in order to beof greater help to the area and customers and to sustain growth together, the Bank will make concerted efforts
with “Implementation of Consulting Kodo” as its core strategy.
I look forward to your further support in the future.

3

Medium Term Management Plan
“Consulting Kodo (to consider and act)” is to “pursue real challenges and problems of the Bank’s partners,
area and customers, and seriously ponder and propose answers to the problems.”
While the business challenges of prefectural small and medium enterprises and individual customer’s needs
will become even more diverse and sophisticated, in order to respond to changes in the business environment
such as excess supply of products and services through financial competition expansion, including otherbusiness lines, the Bank considered that it must respond by changing its thinking and behavior to enable theestablishment as a consulting bank that can respond to customer problems and needs flexibly and closely.
The highest priority acts for “establishment as a consulting bank” include transitioning from a legacy-typebusiness model centered on the provision of products to a new business model built to diversify profits andcreate a profitable structure, and transitioning from “provision of financing and services” to “Consulting Kodo.”
Toward realization of “Establishment as a Consulting Bank,” the configuration three years hence, with a core
strategy of “Implementation of Consulting Kodo” to consider the customer first, the Bank will make concerted
efforts centering on key priorities for achievement of this, “reinforcement of its sales foundation”“reinforcement of its personnel and organizational foundations.”
Long Term Management Vision“A bank that continues to be chosen, with an absolute presence indispensable
to the area and our customers.”
New Medium-Term Management Plan (FY2016-2018)“Consulting Kodo 2019”
Establishment as a Consulting Bank ＜3 years hence＞
Core Strategy“Implementation of Consulting Kodo”
to consider the customer firstSales foundation
reinforcement

Personnel and organizationalfoundation reinforcement

Financial foundation reinforcement

Governance system reinforcement(FY2013-2015) “2nd Stage of Transformation and Growth Strategy”
Generating sales strength through improvements of efficiency and productivity, and expansion of customer foundation(FY2011-2012) “Chiba Kogin Transformation and Growth Strategy”

Personnel and Organizational Foundation Reinforcement■ Reinforcement of organizational power (headquarter system)● Introduction of "Sales Headquarter System" → Improvement of strategy extension speed● Reinforcement of headquarters support for consulting● Reinforcement of promotion system for regional regeneration■ Reinforcement of human resource development● Consulting personnel development● Reinforcement of actual situation understanding capability and credit response ability■External alliance● Reinforcement of collaboration with expert organization● Personnel dispatch to expert organization

Deposits¥2,560 billion
Loans and bills discounted¥2,140 billion
Profit¥6.5 billion

Sales Foundation Reinforcement■ Enhancement of customer foundation● Expansion of core transaction partners● Expansion of range of transaction partners● Proposals besed on customer segments

Common stock ROE■ Support of growth of local companies based on evaluation of business feasibility● Support of reinforcement of management of local small and medium sized companies● Reinforcement of efforts for growing fields (medical, nursing care, agri-food, tourism, etc.)● Reinforcement of support of small and medium sized companies to result in creation of new markets● Reinforcement of efforts for evaluation of business feasibility■ Branch strategy to respond to customer needs

5.0％
Fees and commissions ratio30％● Block sales system introduction● Opening new branches in growing areas
Common s tock ROE・・・ROE (return on equi ty) after deducti on of factors by preferred stock

Target management index (FY 2018)

Fees and commi s si ons rati o・・・Compari s on of fees and commi s s i ons to core bus i nes s gros s i ncome4Basic Rationale behind Promoting Region-Based Financing
Corporate
Philosophy

Moving Forward with the Region, with
Heartfelt Kindness Toward Customers

We believe it is our practice of this corporate philosophy that enables us to realize region-based
financing. We aim to fulfill our obligation as a regional financial institution by actively responding to thefinancing needs of small and medium enterprises, individual businesses owners, and also individual
customers of the region, to provide a smooth supply of financing, while offering management support tothe small and medium enterprises in the region and actively contributing to the revitalization of theregion’s economy.
In promoting region-based financing, the Bank takes a medium- to long-term outlook while
continuously pushing forward with the Bank-wide initiatives of (1) providing consulting functions to clientcompanies, (2) actively participating in region-wide revitalization, and (3) actively transmitting
information to the region and customers. We believe these initiatives will lead to expansion of the Bank’s
customer base, and improvement in the Bank’s profitability and financial soundness.

Business Highlights
Support for Agri-food Businesses

Assistance to deploy overseas operations

Revitalize agriculture with peanuts, a Chiba
Prefectural specialty

Support for establishment of local subsidiaryin Vietnam

Through
expansionofproduction
andimprovement of the quality of Chiba-grown peanuts,
for regeneration of agriculture of the region, the Bank
cooperates with customers and promotes “peanut
contract growing projects.”
The Bank’s coordinators with agricultural related
qualifications such as Agricultural Management
Advisors also participated and supported -- fromengagement in farming to purchasing of products.

In the establishment of the first overseas base by acustomer of the Bank, a major domestic mushroom
production company, the Bank provided support withfinancing relating to the establishment of the local
corporation and funds for construction of a local
factory, making use of the overseas investment
related guarantee system of a credit guarantee
corporation.

Technical development support
Support test product development of systemusing drones
Concerning “Test Product Development ofLandslide Risk Zones Monitoring System using
Drones,” including “Manufacturing, Commercial andService Renovation Subsidy” carried out by the Smalland Medium Enterprise Agency as the certified
supporting institution, the Bank provided support andadvice for overall development including provision ofplans, systems and information related todevelopment

Support for development of
next-generation managers
Managed by Chiba Kogin “Keiei Juku”
The Chiba Kogin “Keiei juku” was established in
September 2004 as an initiative to provide mentorshipfor local companies and support the training of
successor managers.
We regularly hold observation meetings andseminars to impart a wide range of management
viewpoints. Activities for our sixth class of students
have been ongoing since May 2015.

5

Topics
The Chiba Kogyo Bank has been doing new construction, relocation or renewal of bank branches
aiming at more usable, comfortable and functional branch buildings.

Higashi Matsudo Branch grand opening
On January 12, 2016, the Bank’s 72nd branch,
Higashi Matsudo Branch had its grand opening.
In a highly visible location across from the station
roundabout, the branch is on the 2nd floor of thebuilding, directly connected to the Higashi Matsudo
Station of the Hokuso Line by a connecting
passageway. The lobby of the branch uses woodgrown in Chiba Prefecture, creating a space with asense of openness.
In addition, a shared-use multi-story car parking
facility is available (for 156 cars) so customers caneasily visit the branch by car.

Corporate Social Responsibility (CSR)
As a bank in step with the community, the Bank will contribute to a regional society and economy.

COMUOON desktop dialogue support equipment installed in all branches
In order to enhance the attitude of kindly acceptance of the elderly and disabled, the Bank promotes
barrier free approaches in branches, and is working to upgrade facilities with a variety of services andequipment by installing such things as the COMUOON desktop dialogue support equipment in all
branches -- the first time in a financial institution nationwide.

COMUOON desktop dialogue support equipment
This is desktop-type dialog support equipment
developed by Universal Sound Design, Inc., andthe special feature is that when the special
egg-shape speakers are oriented to persons withdifficulty in hearing and when spoken into using a
microphone, the voice will be heard clearly onlyby that person and the amplified voice will notleak very much to the surrounding people.

Culture and sports activities

Environmental effort

The Bank has supported and hosted a varietyof events over many years to promote cultural andsports activities in the community.

The Bank strives to preserve and beautify theenvironment, and engages in activities to passdown the abundant natural environment of Chiba
Prefecture to the future.

Social service activities

Participation in local events

With hopes for safety and sound developmentof future generations, the Bank has made active
efforts for donation and fund-raising activities,
etc.

The Bank participates and cooperates in local
events with emphasis on communication withlocal people.

6

Summary of Selected Financial Data (Consolidated)
Fiscal year ended March 31

2012

2013

2014

2015

2016

¥52,416¥53,990¥52,555¥53,262¥53,884$478,161

9,859

11,046

11,864

13,182

12,566

111,509

8,066

8,675

8,555

8,442

7,901

70,113

8,543

16,482

7,960

19,785

1,174

10,418

134,678

181,741

126,493

139,269

146,737

1,302,130

2,312,063

2,405,813

2,397,895

2,502,720

2,612,058

23,179,146

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

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)

920.33

1,207.85

1,289.27

1,635.99

1,449.71

12.86

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

131.19137.11124.37127.46101.990.91

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

65.70

64.63

76.11

79.34

75.03

0.67

5.75

7.47

5.18

5.46

5.51

10.42

12.95

8.91

8.42

8.81

6.22

5.54

5.62

6.45

5.62

3.68

6.63

5.75

6.28

4.99

(17,239)(28,331)86,807

6,871

18,108160,689(27,856)

1,426

19,288(16,538)

34,279304,188(1,419)35,385(67,456)(7,264)

6,231

55,293¥24,104¥32,839¥71,626¥54,946¥113,766$1,009,548

1,412[1,103]

1,368[1,095]

1,371[1,115]

1,393[1,113]

1,422[1,106]

Capital adequacy ratio(%)

Consolidated capital adequacy ratio(under Japanese 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] (Persons)Notes: 1.
2.
3.

4.
5.

U.S. dollar amounts are the yen equivalent, calculated, for convenience only, at a rate of ¥112.69 = U.S. $1, the approximate
Tokyo foreign exchange market rate as of March 31, 2016.
In the accounting treatment for consumption taxes and local taxes of the Bank and its consolidated subsidiaries, thetax-excluded method is used with the exception of some consolidated subsidiaries.
In the calculation of Net assets per share, Basic earnings per share and Diluted earnings per share (hereinafter “Per ShareInformation”), “Accounting Standard for Earnings Per Share” (ASBJ Statement No. 2, September 13, 2013) and “Guidance on
Accounting Standard for Earnings Per Share” (ASBJ Guidance No. 4, September 13, 2013) are applied.
Capital adequacy ratio is calculated by dividing (total net assets at the end of current period - subscription rights to shares atthe end of current period - non-controlling interests at the end of current period) by total assets at the end of current period.
Effective from the fiscal year under review, the “Accounting Standard for Business Combinations” (ASBJ Statement No. 21,
September 13, 2013) and other standards have been applied, and “net income” has been changed to “profit attributable toowners of parent.”

7

Business Performance (Consolidated)
In FY2015 ended March 31, 2016, the Japanese economy stayed on the track of a mild recovery, andimprovements were seen in corporate earnings and the employment situation with the effects of theGovernment’s economic measures and the decline of energy prices, etc. However, future predictions forthe economy are rather uncertain as well, with concern about a downward swing of the economy
intensifying due to the slowdown of the economies of emerging countries including China, and the trendof financial market instability toward the end of the fiscal year.
The economy of Chiba Prefecture, which forms the basis for the Chiba Kogyo Bank’s business base,continued to be on a recovery track in general, despite some partial weakness, while maintaining low
bankruptcy numbers and continuing on an upward trend in the employment environment.
Against this financial and economic backdrop, the Bank took up the challenge of the final year of its
three-year (FY2013-2015) Medium-Term Management plan, named the “2nd Stage of Transformation and
Growth Strategy” and actively carried out various measures, aiming to be “the best consultant for ourcustomers in the region.”
As a result, the Group’s performance was as follows.
From an operational standpoint, deposits totaled ¥2,338.3 billion, an increase of ¥69.2 billion comparedwith the end of FY2014, primarily due to an increase in individual deposits. Loans and bills discounted
amounted to ¥1,912.6 billion, an increase of ¥90.4 billion compared with the end of FY2014, as a result ofefforts to discover latent financing needs through consulting sales activities, and proactive efforts towardfinancial needs of business partners. Securities holdings amounted to ¥512.4 billion, down ¥41.2 billion
from the end of FY2014.
From a profit and loss standpoint, ordinary income increased ¥622 million year on year to ¥53.884
billion, due to efforts for improvement of fund management profits while the decline in interest rates
continues, and also due to the increase in sales gains on securities. Ordinary expenses increased ¥1.237
billion year on year to ¥41.317 billion, owing to an increase in credit-related expenses, etc. despite efforts
for reduction of general and administrative expenses. As a result, the Group posted ordinary profit of¥12.566 billion, a decrease of ¥615 million year on year. Profit attributable to owners of parent decreased¥540 million year on year to ¥7.901 billion.
Effective from the fiscal year under review, the “Accounting Standard for Business Combinations” (ASBJ
Statement No. 21, September 13, 2013) and other standards have been applied, and “net income” hasbeen changed to “profit attributable to owners of parent.”
Business performance by segment was as follows. Ordinary income from banking business increased¥751 million year on year to ¥45.135 billion, while its segment profit decreased ¥695 million to ¥11.744
billion. Ordinary income from leasing business decreased ¥387 million year on year to ¥8.639 billion, while
its segment profit decreased ¥75 million to ¥245 million. Ordinary income from credit guarantee andcredit card business increased ¥45 million year on year to ¥2.055 billion, while its segment profit increased¥65 million to ¥939 million. Ordinary income from other business segment increased ¥96 million year on
year to ¥2.384 billion, while its segment profit increased ¥23 million to ¥121 million.
The consolidated capital adequacy ratio (under Japanese standards) at the end of FY2015 rose 0.39
percentage points from the end of FY2014 to 8.81%.

8

Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of U.S.
dollars)*(Millions of yen)
As of March 31,
2015

As of March 31,
2016

As of March 31,
2016

Cash and due from banks¥62,590¥121,844$1,081,232

Monetary claims bought

747

564

5,005

AssetsTrading account securities
Securities
Loans and bills discounted

128

153

1,358

553,652

512,436

4,547,307

1,822,154

1,912,615

16,972,358

Foreign exchanges

3,232

3,868

34,324

Other assets

28,991

28,346

251,540

Tangible fixed assets

19,79919,903

176,617

Buildings, net

6,485

6,554

58,160Land

10,934

10,955

97,214

39

44

390

Leased assets, net
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software

7

9

80

2,332

2,339

20,756

2,469

2,416

21,439

2,043

2,004

17,783

Leased assets

37

22

195

Other intangible fixed assets

389

388

3,443

Deferred tax assets

8,098

7,770

68,950

Customers’ liabilities for acceptances and guarantees

13,702

14,159125,646

Allowance for loan losses(12,847)(12,021)(106,673)

2,502,720

2,612,058

23,179,146

Total assets

9

(Thousands of U.S.
dollars)*(Millions of yen)
As of March 31,
2015

As of March 31,
2016

As of March 31,
20162,269,118

2,338,359

20,750,368

Negotiable certificates of deposit

12,20056,100497,826

Call money and sale draft

2,405

–

–

Borrowed money

37,821

23,485

208,404

Foreign exchanges

13

74

657

Other liabilities

20,11821,493

190,727

Net defined benefit liability

6,999

10,562

93,726

Liabilities
Deposits

Provision for directors’ retirement benefits

56

49

435

Provision for reimbursement of deposits

1,016

1,036

9,193

Acceptances and guarantees

13,702

14,159125,646

2,363,451

2,465,320

21,877,008

Capital stock

57,941

62,120551,247

Capital surplus

2,792

6,971

61,860Retained earnings

59,011

64,831

575,304

(69)

(67)

(595)

Total shareholders’ equity

119,677

133,856

1,187,825

Valuation difference on available-for-sale securities

17,433

13,278117,828

Total liabilities
Net assets

Treasury shares

Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription warrant
Non-controlling interests
Total net assets
Total liabilities and net assets* Please refer to the note 1 on page 7.

10

(301)

(3,090)(27,420)

17,131

10,18890,407

15

31

275

2,444

2,661

23,613

139,269

146,737

1,302,130¥2,502,720¥2,612,058$23,179,146

(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, 2015
Ordinary income¥53,262Interest income

Fiscal year ended
March 31, 2016
¥53,884

Fiscal year ended
March 31, 2016
$478,161

30,39630,787273,201

Interest on loans and discounts

24,84924,652

218,759

Interest and dividends on securities

5,053

5,625

49,916

Interest on call loans and bills bought

50

51

453

Interest on deposits with banks

223

287

2,547

Other interest income

219

170

1,509

Fees and commissions

9,804

9,465

83,991Other ordinary income

987

2,140

18,990

Other income

12,074

11,491

101,970

Recoveries of written off claims

1,760

835

7,410

Other

10,313

10,65594,551

Ordinary expenses

40,07941,317

366,643

1,386

1,512

13,417

1,080

1,127

10,001

Interest expenses
Interest on deposits
Interest on negotiable certificates of deposit

20

54

479

Interest on call money and bills sold

2

49

435

Interest on payables under securities lendingtransactions

10

8

71

Interest on borrowings and rediscounts

249

256

2,272

Other interest expenses

22

15

133

Fees and commissions payments

2,783

2,983

26,471Other ordinary expenses

246

1,081

9,593

General and administrative expenses

25,47524,807220,135

Other expenses

10,188

10,93297,009

17

930

8,253

Provision of allowance for loan losses
Other

10,17010,001

88,748

Ordinary profit

13,182

12,566

111,509

118

90

799

61

29

257

Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Profit before income taxes
Income taxes - current

56

61

541

13,064

12,476

110,711

436

622

5,520

Income taxes - deferred

3,953

3,738

33,171

Total income taxes

4,389

4,360

38,690

Profit

8,674

8,116

72,021

232

214

1,899

¥8,442¥7,901$70,113

Profit attributable to non-controlling interests
Profit attributable to owners of parent* Please refer to the note 1 on page 7.

11

(Consolidated Statements of Comprehensive Income)(Thousands of U.S.
dollars)*(Millions of yen)
Fiscal year ended
March 31, 2015
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Comprehensive income

Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2016

¥8,674
11,111¥8,116(6,941)$72,021(61,594)

10,161(4,153)(36,853)949(2,788)(24,740)¥19,785¥1,174$10,418

19,461

957

8,492

324

216

1,917

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests* Please refer to the note 1 on page 7.

12(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2015
(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period
Depends on changing in
the bill policy
Balance at beginning ofcurrent period on changing in
the bill policy
Changes of items during
periodCapital stock

Capital surplus

57,941

4,566

Retained earnings

Total shareholders’equityTreasury shares

55,819(66)

118,260

238
57,941

4,566

238

56,057(66)

118,499

Dividends of surplus(2,204)(2,204)

Profit attributable toowners of parent

8,442

8,442

Purchase of treasury shares
Retirement of treasury
sharesFrom retained earnings tocapital surplus
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period(5,056)(5,059)(5,059)

5,056

–

3,283

(3,283)––(1,773)

2,953

(2)

1,177

57,941

2,792

59,011(69)

119,677

Subscription
warrant

Non-controllinginterests

Total net assets

–

2,120

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Depends on changing in
the bill policy
Balance at beginning ofcurrent period on changing in
the bill policy
Changes of items during
periodValuationdifference on
available-forsale securities

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensiv
e income

7,363(1,251)

6,112

126,493
238

7,363(1,251)

6,112

–

2,120

126,732

Dividends of surplus(2,204)

Profit attributable toowners of parent

8,442

Purchase of treasury shares(5,059)Retirement of treasury
sharesFrom retained earnings tocapital surplus
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period––10,069949

11,01915324

11,35910,069949

11,01915324

12,537

17,433(301)

17,13115

2,444

139,269

13

Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares

Capital stock

Capital surplus

57,941

2,792

4,178

4,178

Retained earnings

Total shareholders’equityTreasury shares

59,011(69)

119,677

8,357

Dividends of surplus(2,079)(2,079)Profit attributable toowners of parent

7,901

7,901

Purchase of treasury shares
Disposal of treasury shares
From retained earnings tocapital surplus
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

(1)

(1)

(1)

3

2

1

(1)

–

4,178

4,178

5,820

1

14,17962,1206,971

64,831(67)

133,856

Subscription
warrant

Non-controllinginterests

Total net assets

15

2,444

139,269

Accumulated other comprehensive income

Balance at beginning ofcurrent period
Changes of items during
periodValuationdifference on
available-forsale securities

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensiv
e income

17,433(301)

17,131

Issuance of new shares

8,357

Dividends of surplus(2,079)Profit attributable toowners of parent

7,901

Purchase of treasury shares(1)

Disposal of treasury shares

2

From retained earnings tocapital surplus
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period–(4,154)(2,788)(6,943)15

216(6,711)(4,154)(2,788)(6,943)

15

216

7,467

13,278(3,090)

10,18831

2,661

146,737

14

Fiscal year ended March 31, 2016
(Thousands of U.S. dollars)*Shareholders’ equity
Capital stock

Capital surplus

514,163

24,77637,07537,075

Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares

Retained earnings

Treasury shares

523,658

Total shareholders’equity(612)

1,062,002

74,159Dividends of surplus(18,449)(18,449)

Profit attributable toowners of parent

70,113

70,113Purchase of treasury shares
Disposal of treasury shares(9)

From retained earnings tocapital surplus
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

(9)

(9)

27

18

9

(9)

–

37,07537,07551,6469

125,823551,247

61,860575,304(595)

1,187,825

Subscription
warrant

Non-controllinginterests

Total net assets

133

21,6881,235,859

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensiv
e income

154,699(2,671)

152,019

Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares

74,159Dividends of surplus(18,449)

Profit attributable toowners of parent

70,113Purchase of treasury shares(9)

Disposal of treasury shares

18

From retained earnings tocapital surplus
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period–(36,862)(24,740)(61,612)

133

1,917

(59,553)(36,862)(24,740)(61,612)

133

1,917

66,261

117,828(27,420)

90,407275

23,613

1,302,130* Please refer to the note 1 on page 7.

15

(4) Consolidated Statements of Cash Flows(Thousands of U.S.
dollars)*(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2016

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Impairment loss

¥13,064¥12,476$110,711

2,247

2,151

19,088

56

61

541

Increase (decrease) in allowance for loan losses

(679)

(825)

(7,321)

Increase (decrease) in net defined benefit liability(1,304)

3,563

31,618

Increase (decrease) in provision for directors’
retirement benefits

(118)

(6)

(53)

Increase (decrease) in provision for reimbursement ofdeposits

131

20

177

(30,396)(30,787)(273,201)

Financing expenses

Gain on fund management

1,386

1,512

13,417

Loss (gain) related to securities(834)(1,532)(13,595)

Foreign exchange losses (gains)

(250)

(201)

(1,784)

Loss (gain) on disposal of non-current assets

61

29

257

Net decrease (increase) in trading account securities

(18)

(24)

(213)

Net decrease (increase) in loans and bills discounted(102,006)(90,461)(802,742)

Net increase (decrease) in deposit

70,07869,241

614,438

Net increase (decrease) in negotiable certificates ofdeposit

3,660

43,900389,564

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

18,509(14,336)(127,216)

Net decrease (increase) in deposit (excluding deposit
paid to Bank of Japan)(1,124)(433)(3,842)

Net decrease (increase) in call loans

5,580

182

1,615

Net increase (decrease) in call money

2,405(2,405)(21,342)

Net decrease (increase) in foreign exchanges - assets

(408)

(636)

(5,644)

Net increase (decrease) in foreign exchanges liabilities

(21)

61

541

Proceeds from fund management

31,06031,358278,268

Payments for finance(1,446)(1,531)(13,586)

Other, net(2,261)(2,840)(25,202)

Subtotal

7,370

18,533

164,460

Income taxes paid

(498)

(425)

(3,771)

Net cash provided by (used in) operating activities

6,871

18,108160,689(114,681)(134,407)(1,192,715)

Proceeds from sales of securities

64,60875,710671,843

Proceeds from redemption of securities

34,99094,798841,228

Purchase of tangible fixed assets(915)(1,121)(9,948)Purchase of intangible assets

(540)

(700)

(6,212)(16,538)

34,279304,188

Cash flows from investing activities
Purchase of securities

Net cash provided by (used in) investing activities

16

(Thousands of U.S.
dollars)*(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2016

Cash flows from financing activities
Proceeds from issuance of common shares

–

8,312

73,760(5,059)

(1)

(9)

–

0

0

Cash dividends paid

(2,204)(2,079)(18,449)

Net cash provided by (used in) financing activities(7,264)

6,231

55,293

250

201

1,784

Net increase (decrease) in cash and cash equivalents(16,680)

58,820521,963

Cash and cash equivalents at beginning of period

71,62654,946

487,585

Cash and cash equivalents at end of period¥54,946¥113,766$1,009,548

Purchase of treasury shares
Proceeds from sales of treasury shares

Effect of exchange rate change on cash and cash
equivalents* Please refer to the Note 1 on page 7.

- Cash Flows
Cash flows during FY2015 and their causes are as follows.
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥18.1 billion (an increase of ¥11.2 billion year onyear). The main contributory factors were ¥12.4 billion in income before income taxes and minority
interests, an increase of ¥90.4 billion in loans and bills discounted, an increase of ¥69.2 billion in deposit,
an increase of ¥43.9 billion in negotiable certificates of deposit and a decrease of ¥14.3 billion inborrowed money.
Cash flows from investing activities
Net cash provided by investing activities amounted to ¥34.2 billion (an increase of ¥50.8 billion year onyear). The main contributory factors were ¥170.5 billion in proceeds from sales and redemption of
securities, ¥134.4 billion in purchase of securities and ¥1.1 billion in purchase of intangible assets.
Cash flows from financing activities
Net cash provided by financing activities amounted to ¥6.2 billion (an increase of ¥13.4 billion year onyear). The main contributory factors were ¥8.3 billion in proceeds from issuance of common shares,
resulting from capital increase through public offering of common stock, etc., and ¥2.0 billion in cash
dividends paid.
As a result, cash and cash equivalents at the end of FY2015 amounted to ¥113.7 billion (an increase of¥58.8 billion year on year).

17

Consolidated Subsidiaries (As of March 31, 2016)
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 Kogin Business Service Co., Ltd.
Main business line:

Clerical operations for the Bank

Established:

January 1986

Capital:¥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:

Development, sale and maintenance of computer systems

Established:

July 1991

Capital:¥30 million

Equity share of the Bank and subsidiaries: 55.0%

Organization Chart (As of June 30, 2016)
Risk Management Division
General Meeting of Shareholders

Board of Directors

General Secretariat
Compliance Committee

Management Planning Division

Governance Committee

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

General Administration Division

Managing Directors
Director

Sales UnitManagement
Liaison Committee

Branch Promotion DivisionCorporate Banking Strategy Division
Personal Banking Strategy Division
Personal Loan Division
Branch Support Division
Business Administration Division
Customer Service Promotion Division
Credit Supervision Division
Business Strategy Division
Treasury Division
Financial Markets Division
Business Procedures and Operations Division

Board of Corporate Auditors

Auditing Division

Standing Corporate Auditors

Office of Corporate Auditors

Corporate Auditors18

Board of Directors, Corporate Auditors and Executive Officers(As of June 30, 2016)
President (CEO):Shunichi Aoyagi

Deputy President (COO):

Seiji Umemura

Senior Managing Director:

Satoshi Hoshino

Managing Director:

Yoshiaki Tateno

Director (Outside Director):

Hisako Toya
Yoshinori Hagino

Managing Executive Officers:

Shigeto Katoh
Hironari Itoh
Ryu-ichiro Ochi
Hitoshi Umeda

Standing Corporate Auditors:

Yasumi Inaba
Kazuto Matsui

Corporate Auditors (Outside Corporate Auditors):

Nobuya Suzuki
Takahiro Itsukaichi

Executive Officers:

Yasuo Toda
Shigeki Ikeda
Hitoshi Yokoyama
Akio Shimoma
Katsumi Shirai
Yasumitsu Kanda
Hiroshi Tanaka

Major Shareholders (Common Stock) (As of March 31, 2016)
Number of Shares
Owned

Name

Proportion of Total
Shares (%)

Mizuho Bank, Ltd.

9,583,910

15.41

Japan Trustee Services Bank, Ltd. (trust account)

2,518,400

4.05

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

1,988,000

3.19

Sakamoto Shiryo Co., Ltd.

1,249,700

2.01

Meiji Yasuda Life Insurance Co.

1,158,200

1.86Japan Trustee Services Bank, Ltd. (trust account-9)

1,096,100

1.76

Chase Manhattan Bank GTS Clients Account Escrow(Standing proxy: Mizuho Bank, Ltd., Settlement Sales
Department)

980,865

1.57

Mizuho Trust & Banking Co., Ltd.

926,800

1.49

Chiba Kogyo Bank Employee Ownership

848,717

1.36

CBNY DFA Intl Small Cap Value Portfolio (Standing proxy:
Citibank Japan Ltd.)

827,200

1.33*

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 basedon Japanese-language statutory disclosure material, 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 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.

19