YMFG Medium-Term Management Plan 2013

Our Goal

To be a financial group that nurtures andgrows with our region
Road to “YMFG Zone”
Zone of Over-regional Network Economy(Going beyond individual regions to forge links among the regions, creating a growing economic zone)

Core Objective

Achieve mutual prosperity with the region by transforming into “One YMFG”
As a financial group comprising three banks—Yamaguchi Bank, Momiji Bank and Kitakyushu Bank—we will build relationships deeply rooted in these regions. At the same time, we will forge connections
between the regions, nurture them, and deliver collective Group strength through our transformation into“One YMFG.” Through these efforts, we aim to invigorate the regions and ensure YMFG’s growth.

Priority Measures for Achieving the Core Objective

Transforming into “One YMFG”
Q

Becoming one, going to the “regions” — From “company” to “regions”
We will work to bring together companies and employees, strengthen points of contact between regions
and customers, and leverage the strengths of each bank’s brand to build deep relationships with the regions.

QAs one “YMFG” —From “company” to “YMFG”
We will enhance Group controls and connections, cultivating a sense of togetherness as the Group, andaugmenting the collective power of the Group as one “YMFG.”

Achieving Mutual Prosperity between the Region and YMFG
Q

Generating regional vigor —As the leading company in the region
By leveraging the network of our Group, including its bases in Asia, we will strive to strengthen points ofcontact between individual regions, between regions and customers, and among customers, thereby
invigorating the region.

Q

Increasing the number of YMFG fans —As the best company in the region
As the best company in the region, we will take advantage of our strengths as a comprehensive financial groupto provide consulting-based sales and unique products and services, increasing the number of YMFG fans.

Reinforcing the Management Foundation to Support “One YMFG”
To transform ourselves into “One YMFG,” we will build a robust management foundation that can adapt toall manner of changes in the environment.

7

YMFG Annual Report 2015

YMFG Forecast for the Fiscal Year Ending March 31, 2016
 We expect total income to fall and other income and profit categories to increase during thefiscal year ending March 31, 2016. One positive factor for profits is expected to be a decrease inexpenses (reduced system costs, etc.).
 In the final year of our medium-term management plan (2013–2016), we expect consolidated
ordinary profits for the YMFG Group to amount to ¥50.0 billion, up ¥2.6 billion year on year. We
also anticipate profit attributable to owners of parent of ¥31.5 billion, up ¥1.0 billion.
(Billions of yen)

YMFG (Consolidated)
Fiscal Year Ending
March 31, 2016

Year-on-Year ChangeCompared with MediumTerm Management Plan

Total income

156.0(3.0)—

Business profits from core operations

34.5

3.1(8.5)

Ordinary profits

50.0

2.6

8.5

Profit attributable to owners of parent

31.5

1.0

6.5

Yamaguchi Bank (Non-Consolidated)
Fiscal Year Ending
March 31, 2016

Year-on-Year Change

Total income

79.5(5.5)

Business profits from core operations

26.6

4.1

Ordinary profits

35.0

3.7

Profit attributable to owners of parent

23.5

3.4

Momiji Bank (Non-Consolidated)
Fiscal Year Ending
March 31, 2016

Year-on-Year Change

Total income

48.5

(3.1)

Business profits from core operations

8.4(0.9)

Ordinary profits

14.5(0.9)

Profit attributable to owners of parent

10.0(0.6)

Kitakyushu Bank (Non-Consolidated)
Fiscal Year Ending
March 31, 2016

Year-on-Year Change

Total income

14.50.5

Business profits from core operations

2.20.3

Ordinary profits

3.00.0

Profit attributable to owners of parent

2.00.5

Note: Figures have been rounded off below the stated amounts.
YMFG Annual Report 20158