CHIBA BANK NEWS

March 27, 2023
Company Name:

The Chiba Bank, Ltd.

Representative:

Tsutomu Yonemoto, President

Stock Exchange Listing:Tokyo (code: 8331)

Chiba Bank Announces Corporate Purpose/Vision
Alongside the 15th Mid-term Plan
March 27, 2023 - The Chiba Bank (President: Tsutomu Yonemoto) (“Chiba Bank” or “the Bank”)
today announced the formulation of the Bank Group’s Purpose and Vision alongside the 15th Mid-term
Plan for the three-year period starting in April, 2023.
1. Purpose / Vision
Purpose:To create a local community better suited to bringing each person’s hope to life

Vision:

An Engagement Bank Group that works closely with the community

・ Chiba Prefecture, which serves as the major operating base of the Bank Group, has an evergrowing potential as a region such as the further construction of Narita Airport runways anddevelopment of the Ken-O expressway and Kita-Chiba highway. However, after facing rapid
shifts in social and economic conditions including the COVID-19 pandemic, climate change, as
well as emerging geo-political risk, the values and behavioral patterns of the prefecture’sresidents are changing significantly.
・ In light of these developments, the Bank Group is once again strengthening its commitment to“providing societal value by contributing to the resolution of regional issues”. In order toalign its views with the Bank’s stakeholders, which include customers, shareholders, andemployees, as well as continue to be a close presence for each person and company within thelocal community and “a place where our stakeholders’ hopes can come to life”, Chiba Bank has
made its core purpose “to create a local community better suited to bringing each person’shope to life”.
・ In order to achieve this purpose, the Bank Group has established a corporate vision of “anEngagement Bank Group that works closely with the community” while aiming to become “aBank Group that seeks to keep growing together along with the entire region by providing value
through deep connections with all of its stakeholders including customers, shareholders, andemployees”. Chiba Bank will strive to provide social value to the region by continuallyprioritizing this “deep connection” with its stakeholders, refining its existing business initiatives,and taking on challenges in new business areas.
2. The 15th Mid-term Plan “Engagement Bank Group – Phase 1 –”(1) Operational Guidelines
Based on its Purpose and Vision, the Bank has established a set of operational guidelines in
the new Mid-term Plan centered on “the evolution of the customer-focused business model”
and will strive to further improve engagement with its customers by changing its perspective

CHIBA BANK NEWSon delivering products and services as a means towards creating the optimal customerexperience.
(2) Basic Policy/Value Creation Base
The new Mid-term Plan contains three “Basic Policies” designed to improve customer service
and seeks to enhance the five “Value Creation Bases” that support these policies.
[Basic Policies]
I.

Creating the optimal customer experience
Deliver personalized proposals utilizing a wide range of data
Provide in-person, remote, and digital channels most-suited to the customer

II. Enhancing the quality of existing business
Further increase the quality of solutions designed to address customer issues
III. Providing new value
Provide new-found value to customers by entering into new business areas[Value Creation Bases]
I. DX (Digital Transformation)
Enhance the Bank’s DX promotion framework and related personnel, utilize new technologies,
strengthen cyber risk management
II. GX (Green Transformation)
Enhance initiatives designed to lead the region towards decarbonization
III. Alliances
Improve the Bank’s ability to provide value through alliances with other banks and industries
IV. Human Capital
Enhance human resources development through proactive investment in “human capital”, Chiba
Bank’s most important management resource
V. Group Governance
Enhance Group governance designed to promote integrated Group management equivalent to aholding company structure
3. KPIsFY2025 Target
Consolidated ROE*1

Goal for FY2030

Above 7%8%

Profit attributable to owners of parent

75.0 billion yen

100 billion yen

Consolidated net business income

120.0 billion yen

Tier 1 common equity capital ratio*2

10.5%~11.5%

Consolidated OHR

45%*1 Calculated assuming “capital = shareholders’ equity”*2 Basel III full implementation finalization basis (excluding valuation differences on securities)

Defining our Purpose and Vision11

Looking back at the previous Mid-term Plan
Major Achievements of Management Goals(billion yen)

Basic Policy 1

Continue to evolve closely with our customers

Basic Policy 2Continue to create new value for our customers’ futures

Make proposals based on
individual life plans
Enhance Corporate Solutions

Virtual residential loan contract
signing
Establish new Area Sales divisions

Expand cashless operations

Establishment of Chibagin MarketCo., Ltd.

Establishment of On Ad Co., Ltd.

156.7

GrossBusinessProfit86.0

81.9
Expand app/portal features

161.5

156.0

152.7

84.5

G&A
Expenses

60.0
54.4

49.6

48.0
Profit attributable toowners of parent

Basic Policy 3Strengthen our Alliance Strategy
TSUBASA Alliance

Chiba-Musashino Alliance

Expand sharing of IT systems, including
smartphone app

Expand collaboration including cashless
operations with franchise locations.

2020/32021/32022/3Chiba-Yokohama Partnership

Progress

KPIs for FY2022

Basic Policy 4

Achieve sustainable management

Profit attributable to owners of parent

Promotion of sustainable finance

Enhance carbon-neutral initiatives

Expand climate-related disclosures

Development of DX personnel

Copyright © 2023 Chiba Bank, Ltd. All Rights Reserved.

2023/3(disclosed)

Alliance with Sony Bank

Strengthen collaboration, including customer
support82.5

Expectedachievement

60.0 billion yen

60.0 billion yen (disclosed 11/2022)

Consolidated ROE

Around 6.5％6.35% (disclosed 11/2022)

Non-consolidated OHR

Around 55%

49.0％ (disclosed 11/2022)

Net business income per employee: 19.0 million yen (disclosed 11/2022)

22

Awareness of the Business Environment

Societal changes◼
◼
◼
◼

Acceleration of digitalization
Living with COVID-19
Intensification of climate change
Emerging geo-political risk

Re-evaluation of the Bank’s purpose andideal position as a regional financial
institution

Period of irreversible
changes◼ Changing values◼ Changing behavioral patterns

Emerging regional
issuesWhy does the Bank Group
exist in society?

VisionUniversal

Individual (consumer)changesPurpose

What position should
we aim for?

Increased Bank Group
operational potential

Policy Trends◼ A new capitalism◼ Impact of CBDC implementation◼ Softening of regulations

Diversification of needs

Strategy for achieving
our Purpose and Vision

Trends in Chiba
Prefecture◼
◼
◼
◼
◼

Completion of Ken-O expressway (2024)
Improve Narita Airport facilities (~2029)
Growing number of households
Population decline/aging population
Shortage of hospital beds in the pref.

Copyright © 2023 Chiba Bank, Ltd. All Rights Reserved.

Flexible

What initiatives should wepursue in the mid-term?

New Mid-term Plan33

Defining our Purpose and Vision

To create a local community better suited to bringing each person’s hope to life

PurposeThe Bank Group exists to create “societal value” by contributing to the resolution of regional issues in addition to providing“functional value” to financial institutions.

In a constantly changing world, Chiba Bank aims to be “a place where our stakeholders’ hopes can come to life” within the region.
ⅰ Contribute to the resolution of regionalsocietal issues

Broaden horizons as a company
Functionalvalue＋Societalvalueⅱ Support for prosperous lifestyles

Each person’s hopeⅲ Offer an empathetic set of values

Companies / Investors

Sustainable growth

Individuals

Prosperous lifestyles

Employees

Self-actualization*Regional societal issues: a wide range of issues concerning the sustainability of the local community, such as COVID-19, digitalization, SDGs, regional revitalization

Vision

An Engagement Bank Group that works closely with the community“Engagement Bank Group”
A Bank Group that seeks to keep growing together along with the entire region by providing value through deep connections with all of its stakeholders
including customers, shareholders, and employees

Copyright © 2023 Chiba Bank, Ltd. All Rights Reserved.

44

Delivering Societal Value to our Stakeholders
Building a bigger fanbase by increasing the corporate value of the Bank Group as a direct result ofaddressing societal issues within the region and bringing each of our stakeholders’ hopes to life
Societal Issues
Societal Changes

Chibagin Group Solutions

Population decline

Addressing the Regions Societal Issues

FinancialservicesResponse to DX+

Response to GX

Non-financial
services

Diversification of values

Changing behavioral
patterns

Increase Stakeholder Engagement

Aging population

Corporations,localgovernments

Sustainable corporate
growth in the region

Recruitment

Offer anempathetic set ofvalues= Build a fanbase

Prosperous lifestyles

RetailHigher income

Increased
Consumer spending

Employees

Job satisfaction/compensation

Investors

Dividends

Etc.

Increase Corporate Value

Copyright © 2023 Chiba Bank, Ltd. All Rights Reserved.

55

The New Mid-term Plan

66

Overview of the 15th Mid-term Plan
The 15th Mid-term Plan Engagement Bank Group – Phase 1 –Title(Plan Period: April 2023 ~ March 2026)

Phase 2~

Operational Guideline: Evolution of the customer-focused business model■ Practice “Sustainable Management” by providing societal value to the community

Basic Policies

I. Creating the optimal customer experience

To create a local community
better suited to bringing
each person’s hope to life

Deliver personalized proposals utilizing a wide range of data.
Provide in-person, remote, and digital channels most-suited to thecustomer.

II. Enhancing the quality of existing businessIII. Providing new value

Further increase the quality of solutions designedto address customer issues.

Provide new-found value to customers byentering into new business areas.

Bank GroupDevelopment■ Expansion of “Value Creation Bases”

Bases

Base I

Base IIDXBase III

GX

Base IV

Alliances

Base V

Human Capital

Goals for FY2030

Group GovernanceConsolidated ROEManagement
KPIs

8%

Profit attributable to owners of parent

Tier 1 common equity capital ratio*

Consolidated ROE

75.0 billion yen

10.5% ~ 11.5%

Above 7%

Profit attributable toowners of parent

Consolidated net business income

Consolidated OHR100 billion yen

120.0 billion yen

45%*Basel III full implementation finalization basis(excluding valuation differences on securities)

Copyright © 2023 Chiba Bank, Ltd. All Rights Reserved.

77

Operational Guidelines (evolution of customer-focused business model)
Issues in our existing business model and changing customer needs① Product-focused proposals② Proposals to address emerging
needs③ Commodification of financial
services④ Changing values and behavioral
patterns

Evolution of our customer-focused business model = “Changing our perspective” on delivering products and services
Expand cross-use through optimal
personalized proposals

Expandcross-use

Proposals that anticipate customer
needs and stand upstream ofcommercial distribution

IncreaseEngagement

Well-timed product proposals suited to customers

Lifestage-based proposals
Cashless

Asset
Residentialmanagementloans

One-to-One Marketing

Housing concierge

Recommendation

Household info

Advance credit

Transaction
data
Behavioral
dataBusiness
IPO support
restructuring

Copyright © 2023 Chiba Bank, Ltd. All Rights Reserved.

Residential loans
Auto-loans[Retail] Comprehensive financial planning[Corporate] Assisting managers

RemoteAdvertisingDigital marketing…

Advisory

In-person

Automobile concierge

Energy-generation
Emerging needs

Starting
capitalRegional trading companies

Establish optimal contact points
for customer convenience

Aim for the expertise of a consulting firm

Elicit needs

Educationloans

Business stage-based proposals

Expand non-financial services
based on customer needs

Other new businesses

Hybrid channel thatcombines the convenienceof digital and added-valueof in-person

DigitalAim for the convenience of a digital bank
Increase connectivity
Become a well-liked and easy-torecommend bank88Basic Policy Overview ①: Retail Customer Journey
Provide value that closely matches the lifestyle of each customer through “in-person, remote, and digital” channels
CustomerstatusValue for theBank

Become a customer

Impression of theBank changes

Consult on a wide
range of issues

Personalized and efficient proposal activity

Digital-use, contact data storage

Consulting proposals

Product groups

Automobile concierge

Insurance proposal advisors

Investment trusts

Private Banking

Insurance

Inheritance professionals

Private trusts

Residential loan experts

Residential loans

Chibagin Securities

Unsecured loans

Branches/Offices

Web meetings

Relationship Manager (RM)
Convenient and easy-touse financial services

Daily
convenience

Understanding myfamily and I

Easy to consult
anytime, anywhereCashlessMoneymanagement

Policy Ⅰ
Policy Ⅱ
Policy Ⅲ

Offer value

External cooperation (tax, real estate, etc.)

Starting to like
Chiba Bank

I want to use Chiba
Bank even more

Personalization
Life events (needs)

Payments

Revenue

Housing concierge

Remote financial consultations

Connect anytime, anywhere

CustomerExperience

Keep choosing
Chiba Bank

Desire to recommend/
become a fan

Receiving helpful
information
Housing
information

MoneyworriesHousepurchaseNew car

Economic security

Fulfilling life

Prosperous old age

Rainy-day
preparation

Children End-of-life Marriage
Financial literacy

Tax payments
Money transfers

AppTrusts/loans

Copyright © 2023 Chiba Bank, Ltd. All Rights Reserved.

Useful in daily life
CF/EC site
(regional trading companies)

Expand cross-use throughpersonalized proposals

99Basic Policy Overview ②: Corporate Customer Journey
Provide convenient services and useful information through the corporate portal,
contribute to resolving management issues of business operators as a partner to management teams

CustomerstatusValue for theBank

Become a customer

Impression ofBank changes

Digital-use, contact data storage

Consult on a wide
range of issues

Convenient andefficientfinancial transactions

Helpful non-financial services forcompany management

Non—finance Area

Project financeBusiness-succession consulting

Non-recourse loans

ICT consulting

Sustainable financeBusiness restructuring support

LBO

Decarbonization support

Equity loan / capital investment

Business matching
Real estate funds

Capitalmanagement

Online investment

Cashless

Corporate
portalDocumentexchange

Copyright © 2023 Chiba Bank, Ltd. All Rights Reserved.

Easy to consult
anytime, anywhere

Issues based on business stage

Business matching
Subsidy diagnostic services
Helpful services for nonborrowers

PlanningHRGeneralaffairs

Sales

Accounting

ITAlliances
Policy Ⅰ
Policy Ⅱ
Policy Ⅲ

Offer value

AdvertisingGroupcompanies

Chiba Bank is reliable forbusiness management

When in doubt, firstcall Chiba BankWeb meeting

Personalize
Provide business information

Sales
management

Revenue

Finance Area

Branches/
OfficesConvenient and easy-to-use
financial services

Keep choosing
Chiba Bank

Resolve issues by collaborating with experts at the Head OfficeConnect with every businessowner including non-borrowers

Customerexperience

Desire to recommend/
become a fan

Decarbonization

SDGsDX

Securing alabor force

IPO

Contribute to resolving management issues
as a partner to management teams

1010

Creation of Human Resources Policy / Overview of Human Resources Strategy
Positioning “human capital” as the Bank’s most important management resourceand developing an HR policy designed to train the personnel necessary to achieve our Purpose
Human Resources Development Policy(working towards our corporate Purpose)“Become someone who keeps fighting for the customer”. Think things through, utilize your own strengths, and gain more supporters

New Mid-term Plan Human Resources Strategy# of trainees

Creation of an “Organization with highpersonnel engagement”

Development of a “Chiba Bank Group
where people grow”
ImportantStrategies① Career development➁ Job satisfaction

Sustainable growth forthe local community③ Diverse organization

Goals④ Integrated Groupmanagement⑤ Human Resources
portfolio

Employees

Provide societal value
Diverse-range of experts

148

Current Mid-term
Plan target＋132

280

Improve personal growth,
job satisfaction, and treatmentof employees

Customers

Bring customers’
hopes to life

Previous Mid-term
Plan result

Bring employees’
hopes to life

Corporate sales

50

Retail sales

50

DX personnel

60

Head Office personnel

90

Corporate solutions, Credit Unit,Market, Planning, etc.

Management team

Copyright © 2023 Chiba Bank, Ltd. All Rights Reserved.

30
1111

Group GovernanceRefine traditional business at existing group companies while expanding into new business areas
Expand Group Business

Expand into
new business areas

Refinetraditional business

Consider capital alliances withother industries

Finance
Chibagin Leasing

Buy-out funds

Chibagin Guarantee

Chibagin Servicer

Business Promotion GroupConsolidate risk management,
management resource allocation,and policy measures, etc.

Consolidate
planning/promotion of eachGroup company

Chibagin Career Service
Chibagin DC Card

Branch/facility management, etc.

Risk management

Special Subsidiary
T&I Innovation Center

Chibagin Heartful

Policy measures, etc.

New Business Areas
Inside the Group

Outside the Group

Chibagin Market

On Ad

Chibagin Green Energy

New anti-money laundering
company (under consideration)

Copyright © 2023 Chiba Bank, Ltd. All Rights Reserved.

Management resource allocation

Chibagin ResearchSobu

Chibagin Leasing

Chibagin Asset Management

IT
Chibagin Computer Service

Management Group

Chibagin Securities

Chibagin Securities

Group StrategyDivision…
…

…

(All 15 Group companies)

Asset Management

Promote integrated Groupmanagement equivalent to a holding
company structure

Oversee all aspects of Group
companies, including sales andmanagement

Chibagin Research InstituteChibagin JCB Card

New

Retail auto-leasing

Newly-established“Group Strategy Division”

Consulting/Solutions
Chibagin Capital

NewEnhance Group Management Structure

Integrated management ofGroup personnel… and further considerationof new businesses

Integrated Group recruiting

Fluid transfer of personnel
1212