Our Shared Vision

Nara Prefecture’s Potential and Issues to Be Addressed

Development potential of Nara prefecture, the Nanto
Bank Group’s core business baseNara prefecture, the Group’s primary base of operations, is an inland prefecture situated in the middle of theKii Peninsula in central Japan and distinguished by a range of towering mountains known as the “roof of theKinki region” in the south. Although it has no airport or port facilities, the prefecture is characterized by strong
resistance to natural disasters.

Characteristics of Nara prefecture
Tourism resources
World Heritage sites
National Treasures/
Important Cultural Properties
Historic sites andnatural monuments

in Japan

1,328

rdplace inJapan

148

Number of rooms
in Japanese inns and hotels
Number ofannual tourists

3

9,948

No.1

3

No.1

in Japan44thplace inJapan

26.23 million

Potential perceived by the Group

Blessed with numerous world-famous cultural andhistoric sites, including World Heritage sites and National
Treasures, Nara has the potential to attract many moretourists and travelers than it does now, thus generatingsuch economic benefits as revitalization of the local
economy and job creation.
Issues under consideration by the GroupThe region is currently attracting a relatively small numberof overnight visitors, an important segment of the tourism
industry. This raises the challenge of transforming theprefecture from a daytime tourist destination to a tourism
hub that visitors choose as a home base for visiting
various destinations in the region.

Economy and industry

GDP (real)

676.8%thplace inJapan

3,892.3 billion yenth
place inJapan

Ratio of forest area

Number ofprivate businesses

46 thousand

3740

th
place inJapan

Potential perceived by the GroupThe prefecture has an abundance of forest resources,
which provide it with the potential to create new
economic value by leveraging its wealth of naturalresources, especially under current circumstances inwhich interest in its natural resources is growing.
Issues under consideration by the Group

Number ofemployed residents

37th

434,135

place inJapan

Per capita
income2,728 thousand yenthplace inJapan

Agricultural
output39.5 billion yenth
place inJapan

36

Nara prefecture’s economy remains among the smallest
in Japan. To improve this situation, job creation and local
economic revitalization by promoting local industries
and establishing new businesses and startups will berequired.

45Sources: “FY2019 Prefectural Accounts,” Cabinet Office; “2016 Economic Census,” Ministry of Internal Affairs and Communications (MIC); “Nara Prefecture Today: 2022”;“2022 Basic School Survey,” Ministry of Education, Culture, Sports, Science and Technology (MEXT); “2019 National Household Survey,” MIC; “National Census for2015 and 2020,” MIC; “2022 Report on Survey of Construction Starts,” Ministry of Land, Infrastructure, Transport and Tourism (MLIT); “2020 National Census ofEmployment and School Commuting Areas (Nara Prefecture)”

12 Nanto Report 2023, the integrated report of Nanto Bank

About Nanto Bank

Our Shared Vision

Developing Human
Value Creation by theGovernance Supporting Our Consolidated Financial
Resources for Value Creation Group’s Human Resources Proactive Human ResourcesStatements

Organizational
overview and external
environment

Businessmodel

Risks andopportunities

Strategiesand resources
allocation

Performance

OutlookHousehold finances and living conditions
Financial assets per household		

15,645 thousand yen

Ratio of owner-occupied
households

73.1%

 ercentage of consumer spendingP(purchasing) outside the prefecture		

19.1%

2ndplace inJapan8thplace inJapan

No.1

in JapanPotential perceived by the GroupThe standard of living in the prefecture is relatively high.
An affluent population with ample per-household financial
assets and a high percentage of owner-occupied homes
offers the potential to increase consumer spending andaccelerate the flow from savings to investment.
Issues under consideration by the Group

With consumer spending flowing out to neighboring
regions such as Osaka and Kyoto, Nara prefecture faces
the challenge of revitalizing personal consumption within
the prefecture.

Human resources
Percentage of high school
graduates obtaining
higher education

63.4%

7th
place inJapan

Potential perceived by the Group

Nara prefecture’s overall
employment rate

72.7%

place inJapan

Ratio of womenin the labor force

46.8%

thplace inJapan

45th47

The prefecture’s high educational level provides richsoil for producing excellent human resources, thus
supporting the potential to diversify the region’s industrial
structure and increase its companies’ competitiveness.
Issues under consideration by the GroupIn addition to the problems raised by a shrinking
working-age population due to a declining birthrateand aging population, a large number of Nara’s humanresources have been leaving for neighboring prefectures
such as Osaka and Kyoto. This makes the creation ofemployment opportunities, improvement of the working
environment, and human resources development highpriority challenges for Nara prefecture.

Nanto Report 2023, the integrated report of Nanto Bank13