The Chiba Bank, Ltd.
Financial Results Briefing for the Fiscal Year Ended March 2021
May 21, 2021

Event Summary[Company Name]

The Chiba Bank, Ltd.

[Fiscal Period]

FY2020[Date]

May 21, 2021

[Time]

15:30 – 16:40(Total: 70 minutes, Presentation: 29 minutes, Q&A: 41 minutes)[Venue]Webcast[Number of Speakers]

4
Hidetoshi Sakuma
Tsutomu Yonemoto
Tadayoshi Shinozaki
Nobukazu Odaka.

President, Group CEO
Director, Senior Executive Officer
Director, Senior Executive Officer, Group
CSO, Group CDTO
Executive Officer, General Manager ofCorporate Planning Division

Odaka: Hello, everyone. I am Nobukazu Odaka from the Corporate Planning Division of The Chiba Bank, Ltd.
Thank you very much for taking time out of your busy schedules to join us today.
The attendees in today’s financial results briefing via web conference are Hidetoshi Sakuma, President andGroup CEO; Tsutomu Yonemoto, Director and Senior Executive Officer; and Tadayoshi Shinozaki, Director andSenior Executive Officer.
We will hold a presentation on the outline of the financial results for the fiscal year ended March 2021 forabout 30 minutes and move on to a question-and-answer session. The entire meeting is scheduled for a
maximum of 75 minutes.
Please refer to our website for the published materials.
Now President Sakuma will provide an overview of our business performance.

Sakuma: Hello, everyone. This is Hidetoshi Sakuma, President and Group CEO. I would like to start a brief
explanation in accordance with the material.
Now, please see page 3. This is a summary of our business performance.
Gross business profits increased by JPY3.3 billion YoY to JPY156.0 billion, marking the fourth consecutive yearof growth, mainly due to a YoY increase of JPY3.5 billion in net fees and commissions income.
Although expenses increased with the completion of the new headquarters building, we were able to keepthem under control compared to the plan. Core net business income, excluding gains/losses on cancellationof investment trusts, increased by JPY2.0 billion, securing income growth for the second consecutive year.

Net credit costs increased by JPY0.9 billion YoY mainly due to precautionary provision, but we managed tocontrol them to a certain extent.
Non-consolidated profit incurred a slight YoY decrease, but consolidated profit attributable to owners ofparent, or net profit, increased by JPY1.6 billion YoY to JPY49.6 billion.

Please see page 4.
The increase in consolidated net profit compared to the plan was mainly due to an upturn in net interest
income, cost containment, and strong financial results from Group companies.
As a result, we expect to have met the requirements of the OHR standard, according to the calculation criteria
based on the Bank of Japan’s “Special Deposit Facility to Enhance the Resilience of the Regional Financial
System,” in the fiscal year under review, which was the first year of the facility.

Please see page 5.
Net interest income in the domestic business sector increased by JPY1.0 billion, as interest on loans turned to
an increase for the first time in 12 years, despite a decrease in profit from funds.
Net interest income in the international business sector was almost unchanged, and overall net interest
income increased by JPY0.9 billion, marking the fourth consecutive year of growth.

Please see page 6.
Deposits increased 10.2% YoY to over JPY14 trillion, while loans increased 5.5% YoY to JPY11.2 trillion.
Corporate loans increased 7.7% YoY due to aggressive efforts in COVID-19-related financing, and housing
loans increased 2.8%. Unsecured consumer loans also maintained an upward trend, increasing 3.8% YoY.

Please see page 7.
The balance of securities increased by JPY180 billion YoY to around JPY2.2 trillion.
Although the average duration to maturity became slightly longer due to the low interest rate environment,
we are managing our portfolio based on risk diversification and paying sufficient attention to the balance ofliquidity and profitability.
In addition, unrealized gains on other securities increased significantly, nearly doubling the amount at the endof the previous fiscal year to JPY180 billion.

Please see page 8.
Net fees and commissions income increased by JPY3.5 billion YoY to JPY26.1 billion, a new record high.
The overall increase was driven by a JPY1.7 billion increase in corporate solutions-related income, mainly due
to the origination of several large-scale syndicated loans in collaboration with our alliance banks. Investment
trusts and personal annuities, which had been on a downward trend, turned upward.

Please see page 9.
Expenses increased by JPY4.1 billion YoY to JPY86.0 billion, mainly due to the recording of expenses related
to the new headquarters building, but were kept under control, down JPY1.9 billion from the initial plan of
JPY87.9 billion.
For the current fiscal year, we expect a decrease of JPY0.4 billion in expenses due to the reversal of one-time
expenses related to the new headquarters building, although we expect an increase in strategic investments
for efficiency improvement and DX.

Please see page 10.
Net credit costs increased by JPY0.9 billion YoY to JPY10.4 billion, due to advance and preventive provision of
about JPY3 billion.
The default rate is low in the Bank’s loans and a large percentage of its lending is to real estate leasing
operators, which put their properties as collateral, so the incidence of new non-performing loans is wellcontrolled, leading to a low loan loss reserve ratio and a low NPL ratio.
For the current fiscal year, we expect credit costs to be JPY10.0 billion, the same level as that in each of the 2previous fiscal years, taking into account the impact of COVID-19.

Please see page 11.
For the current fiscal year, we plan to increase gross business profits by JPY3.4 billion. Net interest income
will increase by JPY1.8 billion, driven by an increase in interest on loans and bills discounted in Japan. Net fees
and commissions income is expected to increase by JPY1.8 billion due to the accumulation of revenues frominvestment trusts and personal annuities and cashless payment and card business.
Expenses and net credit costs are expected to decrease by JPY0.4 billion, respectively, and net profit on a nonconsolidated basis is expected to increase by JPY3.3 billion to JPY49.0 billion. Consolidated net profit isexpected to increase by JPY2.3 billion to JPY52.0 billion.
Even in the midst of the difficult external environment, we will continue to build on the effects of various
measures to strengthen our profitability.

Please see page 12.
In terms of returns to shareholders, the consolidated dividend payout ratio rose to 30%, as we increased theannual dividend by JPY2 per share for the fiscal year under review.
With profit growth expected to continue in the current fiscal year, we increased the annual dividend by JPY2
YoY again, to strengthen shareholder returns. As for future shareholder returns, we will continue to consider
increasing dividends and conducting share buybacks while assessing the impact of COVID-19 on the Bank's
performance.
Pages 14 and 15 provide an overview of the Medium-Term Management Plan. Please take a look at it later.

Next, I will explain the effects of COVID-19. Please see page 17.
We continued to implement various initiatives, mainly focusing on cash flow assistance, in order to firmly
support customers affected by COVID-19, and the total amount of COVID-19-related loans came to about
JPY700 billion with 16,000 executions.
In loans related to COVID-19 with guarantees of the Association, the maximum amount of an interest-freeloan was raised from JPY40 million to JPY60 million, so the total amount of loans executed in February andMarch exceeded JPY60 billion.
However, at present, COVID-19-related loans account for only 10% to 20% of the Bank's total corporate loan
disbursements, and a majority of loans are for capital investment and ordinary working capital.

Please see page 18.
In the past, our risk management division calculated credit costs from a macro perspective, taking into accountthe impact of COVID-19, but from this time on, the credit examination section added its calculations from a
micro perspective.
For customers with the outstanding lending of JPY100 million or more, they estimated credit costs from themicro perspective, based on the results of direct interviews with the customers about their recovery status
and the need for support, as well as the actual situation of each individual company and other factors. For
other customers, the Bank continued to estimate credit costs from the macro perspective.
The calculations are based on the assumption that economic conditions will gradually recover in the second
half of the fiscal year and beyond, but the recovery will take time depending on the industry’s and individualcompany's conditions. As a result, new downgrades for the current fiscal year are expected to be JPY10.5
billion, well within the plan.

Please see page 19.
Amid growing demand for telework, Chiba Prefecture has attracted much attention as a candidate for a placeof residence as it is full of nature and offers comfortable life despite its location next to Tokyo. In a public land
price survey released in March, Chiba was the only prefecture in the Kanto region where land prices forresidential areas maintained an upward trend.
Future development needs can be expected, and housing loan and lending to real estate leasing operators,
which account for more than half of the Bank's loans, are expected to remain strong.
That is all for the explanation from me.
Next, Yonemoto, who is scheduled to take office as President in June, will give an explanation on businessstrategies.

Yonemoto: Hello, everyone. This is Tsutomu Yonemoto, Senior Executive Officer.
Now, let me explain business strategies. Please see page 21 of the material.
In the medium-term management plan that started in April last year, we positioned our digital strategy as themost important measure to be implemented. Setting the Moonshot Goals, we have strengthened our DX
promotion.
To achieve fundamental DX, we aim to transform the bank itself into a digital bank by focusing on thetransformation of services for customers, business operations, and human resources strategy.
We have identified the following 7 key issues to be addressed: digitalization of customer services, utilizationof data, improvement of operating efficiency, new businesses, digitalization of business operations,strengthening of risk management, and securing of DX human resources. The goal is to improve customer
experience and increase productivity by proceeding with the 7 key targets by the whole Group.
We aim to secure 1,000 employees over the next 2 years to serve as the base for DX promotion, and we areencouraging our employees to acquire IT Passport, a national certification.

Please see page 22.
The access channels to customers are expected to change drastically from bank counters and ATMs to apps
in the future, and this will increase the number of touch points with customers, thereby expanding business
opportunities.
By further improving the usability of our app, which is the base of contact with customers, we aim to increase
the number of digital customers to 1.5 million and let profit from digital customers account for 50% of the
bank's overall profit.
In addition, for face-to-face channels such as bank branches, which will be differentiated channels, we willfurther enhance our efficiency and consulting capabilities by thoroughly promoting DX in business operations
and data utilization.
In areas afflicted with declining populations, such as the southern part of Chiba Prefecture, we will consider
expanding the area sales system that we have in place in the Tateyama area, in a bid to pursue branch
strategies tailored to regional characteristics. However, the strength of a regional bank is its face-to-faceservice, and we intend to maintain a certain number of branches as a differentiated channel to deepen contact
with customers.

Please see page 23.
In April, we started providing services of the Chibagin Business Portal as a new digital channel for corporate
customers.
This corporate portal has a function that allows customers and branch sales representatives to communicate
with each other and customers to check their accounts over the Internet.
In addition to connecting with Group companies and external services, the portal is linked to individual
customers to become a hub for all corporate services and an indispensable digital contact point for businessactivities.

Please see page 24.
In the corporate business, we provide comprehensive solutions, including business matching and M&A, tocustomers with various needs and management problems through continuous dialogue as an advisor, and wewill enhance our fees and commissions income.
Meanwhile, the amount of syndicated loans arranged by the Bank is on an upward trend due to theimprovement of our origination ability through the accumulation of our past efforts and the improvement of
our invitation capability by utilizing the financial strength of our alliance partners, which has led to a rise infinance-related fees and commissions income.

Please see page 25.
Due to our response to borrowing needs amid COVID-19, loans to small- and medium-sized enterprises areon an uptrend, with a particularly large increase in lending with guarantees from the Association.
In addition, we actively provided support to customers in areas affected by COVID-19, resulting in a record
number of new loan customers. By doing so, we have made progress in expanding our customer base.

Please see page 26.
In May, we started a trial of AI examining using account deposit/withdrawal data, and we will use DX to further
upgrade our examining system.
With regard to loans to the real estate leasing industry, which account for over 20% of the Bank's loans, theBank continues to implement a strict screening system and maintains soundness, with the default rate andthe percentage of loans with modified conditions remaining unchanged and the percentage of delinquentloans declining.

Please see page 27.
One of our strengths is to have the largest overseas network among regional banks in Japan, and even in the
midst of the turmoil caused by COVID-19, our employees at overseas branches, by working from home,
continue to provide support to Japanese companies operating abroad.
In addition, in collaboration with our alliance banks, we have continued our efforts to provide loans toJapanese companies' overseas subsidiaries and non-Japanese companies, with the number of initiatives
exceeding 20 since April 2018.
We continue to maintain a cautious approach to non-Japanese loans, including bonds, and most of our loans
and bonds exposure is to companies with investment-grade ratings, thus limiting credit risk.

Next, I will explain the business with individuals. Please see page 28.
The number of account registrations for the Chiba Bank App has been steadily increasing since its upgrade in
April last year, reaching 300,000 as of the end of March, which is 30% of the target of 1 million by March 2023.
In the third phase scheduled for June, we plan to add functions such as credit card loans and branch visit
reservations. In the future, we will shorten the development period and add functions one by one and aim tocreate an "app that connects with people's lifestyles" that can connect local businesses and individual
customers—for example, by integrating the app with our new business, a regional trading company.
In addition, the expansion to the TSUBASA Alliance partner banks is in progress, and we expect to increase
our development ability, service ability, and information volume in the future.

Please see page 29.
Sales of financial products, which were sluggish in the first half of the previous fiscal year due to the impact
of COVID-19, recovered significantly in the second half, and the Group's total balance of financial products
has exceeded JPY2 trillion.
In addition, the trust and inheritance-related service, in which interest is growing amid the COVID-19
pandemic, is also performing well, with the number of transactions and the amount of fees in the second halfof the previous fiscal year reaching record highs for a half year.

Please see page 30.
Housing loans performed well, with the amount executed in the second half of the fiscal year up 12% YoY,
due to factors such as the growing interest in moving to the countryside due to the impact of COVID-19.
The number of applications for preliminary examination has been significantly higher than the year-before
figure, and we will continue to aim for a steady increase in the balance by improving convenience through theintroduction of the Web-based completion scheme and increasing the number of dedicated staff.
The delinquency rate and the subrogation payment rate decreased YoY, and the housing loans receivableremained sound.

Please see page 31.
The balance of unsecured customer loans has also been steadily increasing due to the introduction of the
web-based completion scheme and improved convenience through the use of RPA to shorten the screening
period.

Please see page 32.
As for the cashless business, which is one of the pillars of revenue enhancement in the medium-term
management plan, we started handling TSUBASA Visa debit cards in October last year. In the franchise store
business, we launched a series of new services, such as ticket vending machines, POS cash registers, B2B
payment, and recurring in the second half of the previous fiscal year. By doing so, we have enhanced theconvenience of the cashless business.
In the future, we will aim to build a local cashless economic zone by also providing sales support to franchised
stores, such as providing a remittance service for app and card users.

The following is an explanation of the status of income and expenditure. Please see page 33.
Although the Bank’s franchised store business has turned somewhat sluggish due to the impact of COVID-19,
the number of franchisees has been steadily increasing, and we can expect future growth in earnings.
In addition, the TSUBASA Visa debit card, which we started handling in October last year, has been performing
well, achieving its initial 6-month acquisition target of 60,000 cards in 4 months.
As one of the few Japanese banks that have made a full-fledged entry into the cashless market, which is
expected to grow in size, we will use our advantage to boost our earnings and revitalize the local economy.

Next, I would like to explain about our new business. Please see page 34.
In May, we established a regional trading company, Chibagin Market, with the aim of building an economic
circulation system within the region.
Initially, by advancing 4 measures, including E-commerce and purchase-based crowdfunding, we will develop
a series of services from product development to sales channel development and promotion, fusing digitaland real operations.
In addition, in response to the growing interest in self-help asset building as a way to prepare for the era of
100 years of life, we are considering the establishment of a joint venture with Nomura Securities and the
TSUBASA alliance banks to provide remote financial consulting services, and plan to establish a preparatorycompany in the second quarter of the current fiscal year.

Please see page 35.
The Moonshot goal of reducing the use of paper and stamps to zero has been largely achieved in the reception
areas at low counters of bank branches with the introduction of in-store tablets and TSUBASA Smile, an overthe-counter terminal.
For the next fiscal year, we have decided to jointly introduce the TSUBASA general-purpose paperless systemwith Chugoku Bank to achieve paperless and stamp-less operations at reception counters with low frequency
of use of paper and stamps as well as back-office operations. As a result, we expect to achieve the Moonshot
goal for low-counter OTC operations including back-office operations.
This will create a system that allows for the unification of administrative work at the headquarters and thesharing of administrative departments among the alliance partner banks.
In addition, by promoting the use of RPA and other measures to improve operational efficiency, we haveachieved a reduction in workload of 90,000 hours in the previous fiscal year, and we have reallocatedemployees mainly to the sales and planning departments in order to strengthen our top line and improve ourservice capabilities.

Next, I will explain our alliance strategies. Please see page 37.
The TSUBASA alliance, a collaboration of the top regional banks in several regions, is the largest alliance ofregional banks with total assets exceeding JPY90 trillion.
The number of customers who chose the member banks of the alliance as their main financial partners
exceeded those of megabanks, and we will provide a higher level of financial services by taking advantage ofthis volume of information, our nationwide network, and our superiority in scale.
In addition, we will use TSUBASA Alliance Co. to establish platforms by consolidating new business areas andcommon departments.

Please see page 38.
5 years have passed since Chiba Bank and Musashino Bank formed an alliance, the CM Alliance. It has achieved
a cumulative effect of JPY14.3 billion over the 5 years, far exceeding the initial target of JPY10.0 billion, as aresult of key measures such as the securities business in Saitama Prefecture, which is the operating region for
Musashino, as well as joint sales operations and inheritance-related business bearing fruit.
The new 5-year plan, which started in April, aims to achieve an alliance effect of JPY15.0 billion, with the visionof “realizing an image of a deepened regional bank as a frontrunner in regional bank cooperation.”
Under the concepts of Create, Match, and Advance, derived from the initial letters of the alliance name, CMA,
we will create and advance new businesses and services, and expand their value to our customers and thecommunities.

Please see page 39.
In the Chiba-Yokohama Partnership with Bank of Yokohama, collaborative financing in the corporate sector
drove results, and the amount of collaboration effects in the previous fiscal year was JPY6.9 billion, far
exceeding the plan.
The cumulative effect amount has accumulated to JPY8.4 billion, and we are on track to achieve our 5-yearplan of JPY20 billion. In April, we established Chiba-Yokohama Partnership Number 1 Fund to invest in regional
companies with needs for business succession and growth support. After the investment by the fund, we will
aim to improve the corporate value of our investee companies through hands-on support, such as theformulation of business plans and management guidance and contribute to solving the problems of regionalcustomers.

Next, I will explain sustainability. Please see page 41.
We believe that the SDGs are an important part of our efforts as we aim to achieve sustainable growth
together with local communities. We will steadily implement the Chiba Bank Group Declaration on SDGs andproactively contribute to solving social issues through our business activities.
In November last year, we newly established the Chiba Bank Group Human Rights Policy and the Chiba Bank
Group Environmental Policy to express our policies on activities to respect human rights, which are an
important issue in the international community, and to protect the environment.

Please see page 42.
We are actively involved in environmental finance, not only in Chiba Prefecture, but also in a wide range ofregions throughout Japan and overseas.
The amount of renewable energy generated from loans provided by the Bank is equivalent to electricity
demand from about 1.5 million households, of which about 500,000 households are in Chiba Prefecture,accounting for about 20% of the total 2.8 million households there.

Please see page 43.
In the area of diversity promotion, we are taking industry-leading initiatives, especially in the field of women's
activities, and have received high external evaluations, including being selected as a Nadeshiko Brand for 4
consecutive years by the Ministry of Economy, Trade, and Industry and the Tokyo Stock Exchange.
With regard to the contribution to regional revitalization, we will continue to contribute to the revitalizationof local communities by working to resolve issues related to longevity and providing support to COVID-19affected communities.

Please see page 44.
With regard to governance, outside executives account for more than one-third of the Board of Directors, andfor a majority of the Board of Auditors and the Appointment, Remuneration, Management Advisory Board.
We will further upgrade our governance system, including those of Group companies, in order to further
demonstrate our management supervision function.
In addition, in order to establish a Group-wide management control system, we newly assigned a CHRO, Chief
Human Resources Officer, in April to oversee the human resource strategy, and strengthened the Group’s
chief officer system.
By responding with speed to changes in the environment surrounding the Group and building a solidmanagement foundation that supports the creation of new businesses, we will continue to transform
ourselves into a new financial corporate group.

Please see page 45.
Once again, as we announced in March, I will assume the position of President and Representative Director
as of June 25. I would like to pledge my commitment again to the development of the economy of Chiba
Prefecture and Chiba Bank.
I look forward to your continued support, guidance, and patronage.
That is all for the explanation from me. Thank you very much.