Message from the President

Strengthening the Group’s management
base, bolster operating performance andcontribute to the region

hank you for your continued support of theTclients, support their funding needs and augment ourYamaguchi Financial Group (“YMFG”).

consulting function.

Group and its business results for the fiscal year

the start of “YMFG Medium-Term Management Planended March 31, 2015, and is designed to help you2013.” In the fiscal year ended March 31, 2015, theunderstand more about YMFG.

second year for this plan, we strengthened regional

This annual report provides an overview of theThe fiscal year ended March 31, 2014, marked

In line with their mission of contributing torelations as a financial group comprising three banks:regional economic development, regional financial

Yamaguchi Bank, Momiji Bank and Kitakyushu Bank.

institutions face vigorous requests to deliver stronger

In collaboration with YM Securities, YM Consulting

financial soundness and profitability, supply funding

and other Group companies, we are working

more flexibly and further enhance their financial

together to leverage our comprehensive Groupservices. Amid these conditions, supported by itsstrengths as “One YMFG.”

shareholders and business partners all YMFG’s

In the fiscal year ending March 31, 2016, the final

officers and employees were united in their efforts toyear of our medium-term management plan, we will

strengthen the Group’s management base, bolster

undertake a variety of measures to bring the plan

operating performance and contribute to the region.

to completion.

In accordance with our aim of being a financial

We will do our utmost to foster relationships ofgroup with strong operations in Asia, in Marchmutual prosperity among the region, our customers

2015 we signed a memorandum of understanding

and the YMFG Group as we work to invigorate theinvolving a business tie-up with Vietcombank, aregion by providing diverse financial services.

leading bank in Vietnam. This move was part ofour ongoing measures to further enhance ourAsian network.

We look forward to your continued patronageand support.
August 2015

In March 2015, we issued $300 million in US
dollar-denominated convertible bonds to meetthe dollar funding needs of customers conducting
business overseas.
Moving forward, we will continue working toprovide overseas business opportunities to our3

YMFG Annual Report 2015

Koichi Fukuda
President
Yamaguchi Financial Group, Inc.

Establishing a New Company Dedicated to Regional Revitalization—YMFG ZONE PLANNING—
YMFG has established an entirely new company, YMFG Zone Planning (“YM-ZOP”), dedicated to regionalrevitalization. Operating throughout YMFG’s business area (the “YMFG Zone”), the new company will promote
new directions in business, focusing in particular on utilizing the strength of the private sector.
Linking the regional relationships, expertise and Group networks possessed by Group companies, particularly
Yamaguchi Bank, Momiji Bank and Kitakyushu Bank, the new company will strive to address broad-ranging
issues, including those related to the region, economic layout and business environment.

Five Pillars of Businesst Assist strategy formulationt Generally encourage and cultivate startups
throughout the regiont Create networks of sales contacts
t Discover and support companies with strong
growth potential
t Support efforts to train human resources andyoung managers

Building Growth
Platforms forMiddle-Ranking Smalland Medium-SizedCompanies

Creating Business
Databasest Utilize regional economicanalysis systems
t Perform structural analysesof regional economiest Marketing analyses andproposals
t Analyze competitors’
business strategiest Discover and support companies with strong
growth potential
t Support efforts to train human resources andyoung managers
t Help to improve quality of life for woment Improve youth financial literacyt Support efforts to increase the participation ofwomen in societyt Support the improvement of workplaceenvironments, particularly those employing women

Boosting Labor
Productivity

YM-ZOPRegionalrevitalization

Open Innovationt Networks of small and medium-sized companiest Collaborative networks with large companiest Networks involving industry, government, academia,banks and NPOst YMFG ZONE network (across the region)

Building Regional
Infrastructuret Propose profitable town developmentt Suggest dismantling empty homest Build networks with real estate owners
t Use energy measures to promote regional invigorationt Make a full-fledged entry into the infrastructure
investment business, and reinforce public–private relations

YMFG Annual Report 20154