Investor
RelationsFirst Half of Fiscal 2023
Earnings Briefing Materials(April 1, 2023 – September 30, 2023)

Iyogin Holdings
December 8, 2023
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

I n d ex

I. Summary of Earnings for the First Half of Fiscal 2023
II. Process for Enhancement of Corporate Value
III. Group Medium-Term Management Plan
III-1. Main Strategies and Progress of Medium-Term Management Plan
III-2. Efforts for Sustainability
III-3. Profit / Loss Forecasts and Capital Policy

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Profit and Loss Overview for the First Half of Fiscal 2023
Profit attributable to owners of parent marked a record high due to an increase in gain related to securities, in addition to securing a high level ofconsolidated core business gross profit
Holding Company Consolidated(Units: Millions of yen)

Consolidated core business gross profit
Interest and dividend income
Fees and commissions
Other operating income(Excluding profit/loss related to bonds including
JGBs, etc.)
Expenses (-)
Personnel expenses
Nonpersonnel expenses
Taxes
Consolidated core business net income
Credit costs (-) ①+②-③-④
Provision of reserve for general loan losses ①
Amortization of non-performing loans ②
Reversal of allowance for loan losses ③
Recoveries of written off claims ④
Gain (loss) related to securities
Gain (loss) related to bonds including JGBs, etc.
Gain (loss) related to stock, etc.
Other temporary gain (loss)
Ordinary income
Extraordinary income (loss)
Income before income taxes
Net income
Profit attributable to owners of parent
Ordinary Revenue
Business net income

First half offiscal 2023

YoY

50,78941,481
5,538＋5,820＋3,754＋913

3,768＋1,152

27,21915,011
10,557
1,650
23,570
1,512
(227)
1,873
－
133
13,507
10,273
3,233
1,841
37,406(128)
37,277
24,731
24,733＋1,062
＋384
＋567
＋110
＋4,769＋2,273(227)＋1,561(923)(17)＋5,987＋4,427＋1,560＋19＋8,491(6)＋8,484＋4,419＋4,856

99,762
34,071＋13,550＋9,413Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Increase/
Decrease＋12.9％First half offiscal 2022
44,96937,727
4,625
2,616

＋4.1%

＋21.8％＋24.4％

26,157
14,6279,990
1,540
18,811
(761)
－
312
923
150
7,520
5,846
1,673
1,822
28,915(122)
28,793
20,312
19,877＋15.7％＋38.2％

86,212
24,658＋25.3％＋29.4％■ Consolidated core business gross profit Up ¥5,820 million YoY
 Interest and dividend income increased, mainly due to an increase in gain on loan management
as a result of boosting loan balance and an increase in gain on securities management as aresult of improvement of gain (loss) on fund cancellation.
 Fees and commissions increased due to increases in revenue on corporate consulting andrevenue on assets in custody by the Group as a whole.

■ Expenses (-)

Up ¥1,062 million YoY

 Nonpersonnel expenses such as depreciation and administrative outsourcing expenses
increased due to an increase in strategic investments. Also, personnel expenses increased dueto the raised wage base, etc.

■ Credit costs (-)

Up ¥2,273 million YoY

 Credit costs increased due to a decrease in reversal of provision of reserve for general loan
losses as a result of a decrease in factors of reversal of provision for COVID-19 measures and anincrease in the reserve ratio.

■ Gain (loss) related to securities

Up ¥5,987 million YoY

 Gain (loss) related to bonds including JGBs, etc. increased due to the recording of a gain on
sales of foreign bonds by capturing the market trend.
 Gain (loss) related to stock, etc. increased due to the increased gain on sales of crossshareholdings.

■ Profit attributable toowners of parent

Up ¥4,856 million YoY‐2‐

Profit and Loss of Major Group Companies for the First Half of Fiscal 2023 [Group Companies]
Profit and Loss [Iyo Bank Nonconsolidated] Mainly due to increases in core business gross profit and gain (loss) related to securities,
net income increased and a high level of profit continued to be secured(Units: Millions of yen)First half offiscal 2023
Core business gross profit
Interest and dividend income
Fees and commissions
Of which, revenue on assets in custody
Other operating income(Excluding profit/loss related to bonds including
JGBs, etc.)
Expenses (-)
Personnel expenses
Nonpersonnel expenses
Taxes
Core business net income
Credit costs (-) ①+②-③-④
Provision of reserve for general loan losses ①
Amortization of non-performing loans ②
Reversal of allowance for loan losses ③
Recoveries of written off claims ④
Gain (loss) related to securities
Gain (loss) related to bonds including JGBs, etc.
Gain (loss) related to stock, etc.
Other temporary gain (loss)
Ordinary income
Extraordinary income (loss)
Income before income taxes
Net income
Ordinary revenue

YoY

48,064
41,4493,637
853＋5,808＋3,858
＋591
＋0

2,977

＋1,36026,012
12,533
11,863
1,614
22,051
1,340
(241)
1,714
－
132
13,583
10,2733,309
2,004
36,299(128)
36,17024,087＋1,147(248)＋1,291＋103＋4,660＋2,210(241)＋1,547(888)(17)＋6,408＋4,427＋1,981＋114＋8,972(6)＋8,965＋4,90390,091
32,566＋13,861＋9,329Business net income
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Increase/
Decrease＋13.7％First half offiscal 2022
42,256
37,591
3,046
853
1,617

＋4.6%

＋25.6％

24,865
12,781
10,572
1,511
17,391
(870)
－
167
888
149
7,175
5,846
1,328
1,890
27,327(122)
27,205
19,184＋18.2％＋40.1％

76,23023,237＋26.8％＋32.8％

Profit and Loss [Other Major Group Companies]
 Iyogin Leasing(Units: Millions of yen)First half offiscal 2023
Core businessgross profit
Expenses (-)
Core business net
incomeOther profit (loss) Shikoku Alliance Securities (Units: Millions of yen)First half offiscal 2023

YoY

714

＋37

387

＋24

327

＋13

35

(70)

Core businessgross profit
Expenses (-)
Core business net
incomeOther profit (loss)

Ordinary income

362

(57)

Net income

241

(40)

8,413

＋54

Ordinary revenue

 Iyogin Credit GuaranteeFirst half offiscal 2023
Core businessgross profit
Expenses (-)
Core business net
incomeOther profit (loss)(Units: Millions of yen)

767

＋45

770

(16)

(2)

＋62

0

＋0

Ordinary income

(2)

＋62

Net income

(5)

＋62

Ordinary revenue

905

＋2

 Iyogin Computer Service(Units: Millions of yen)First half offiscal 2023

YoY

1,064

＋19

142

＋39

922

(20)

(256)

(47)

Core businessgross profit
Expenses (-)
Core business net
incomeOther profit (loss)

Ordinary income

666

(66)

Net income

443
1,112

Ordinary revenue

YoY

YoY

725

＋85

619

＋19

105

＋66

(5)

(21)

Ordinary income

100

＋45

(41)

Net income

66

＋29

(30)

Ordinary revenue

1,446

＋438

*The figures for profits and losses of each company are stated before inter-group elimination.
‐3‐

Factors in Increase / Decrease in Core Business Gross Profit for the First Half of Fiscal 2023
Core business gross profit still remained at a high level, increased year on year due to steady increases in both interest and dividend income and noninterest and dividend income
Year-on-year (First Half of Fiscal 2023 – First Half of Fiscal 2022)(Units: Billions of yen)
(Note) Differences in yield of domestic currency utilize yield differences withdomestic deposits, etc.
Differences in yield of foreign currency utilize yield differences with foreign
currency funding costs

Interest and dividend income(¥41.4 billion)

Gain on loan
management(¥27.1 billion)＋1.77

Gain on securities
management(¥13.0 billion)

＋1.12

＋5.82

＋0.09
Of which, foreign currency(¥7.1 billion)

＋1.67

+3.75
Core business gross profit(¥50.7 billion)

Of which, domestic currency(¥19.9 billion)

Of which, domestic currency(¥8.7 billion)＋2.45
Of which, foreign currency(¥4.3 billion)(1.33)
Other (¥1.3 billion)

Fees andcommissions(¥5.5 billion)

＋0.91
Other
(¥3.7 billion)＋1.15
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Volume factors +0.83 (Average loan balance up ¥183.3 billion)
Yield difference factors (0.74) (Yield difference down 0.03%)
Volume factors +0.79 (Average loan balance up ¥114.8 billion)
Yield difference factors +0.88 (Yield difference up 0.19%)
Volume factors (0.35) (Average securities balance down ¥45.3 billion)
Yield difference factors +0.09
Gain (loss) on fund cancellation factors +2.71 (Recorded gain on
cancellation of investment trusts, etc.)
Volume factors +0.54 (Average securities balance up ¥49.0 billion)
Yield difference factors (1.87) (Yield difference down 0.65%)＋0.86… Solutions-related commissions +0.15, revenue on assets in custody +0.24, international loan-related commissions +0.54, etc.

… (0.32) from gain (loss) on foreign exchange transactions, +1.68 from gain (loss) on derivatives, (0.20) fromrevenue on bond trading, etc.
‐4‐

Loans, Deposits, and Assets in Custody for the First Half of Fiscal 2023
Deposits, etc.

Balance of deposits, etc. by region
RegionLoans

Deposits, etc. were up 2.5% year-on-year(Units: Billions of yen)

Fist Half of
Fiscal 2022

Fist Half of
Fiscal 2023

Balance of loans by region(Units: Billions of yen)

Fist Half of
Fiscal 2022

RegionIncrease/
Decrease

YoY

Loans were up 5.4% year-on-year

Fist Half of
Fiscal 2023

YoY

Increase/
Decrease

Within Ehime Prefecture

5,179.2

5,276.6

＋97.4

＋1.9%

Within Ehime Prefecture

2,675.8

2,770.1

＋94.3

＋3.5%

Shikoku (excluding Ehime)

290.5

295.4

＋4.9

＋1.7%

Shikoku (excluding Ehime)

343.5

359.7

＋16.2

＋4.7%

Kyushu

186.5

197.1

＋10.6

＋5.7%

Kyushu

333.3

357.9

＋24.6

＋7.4%

Chugoku

289.0

293.0

＋4.0

＋1.4%

Chugoku

482.5

505.2

＋22.7

＋4.7%

Kinki

191.6

194.9

＋3.3

＋1.7%

Kinki

380.4

413.4

＋33.0

＋8.7%

Tokyo and Nagoya

422.0

444.6

＋22.6

＋5.4%

Tokyo and Nagoya

671.1

735.1

＋64.0

＋9.5%

Singapore

81.8

120.4

＋38.6

＋47.2%

Financial Market Business Office

135.8

143.5

＋7.7

＋5.7%

Offshore, etc.

28.8

14.7

(14.1)(49.0)%

Total (domestic branches)

5,022.7

5,285.2＋262.5＋5.2%

6,669.7

6,837.0＋167.3＋2.5%

Singapore

234.6

256.2

＋21.6

＋9.2%

5,257.4

5,541.5＋284.1＋5.4%

Balance of assets in custody(Units: Billions of yen)

Fist Half of
Fiscal 2022

Fist Half of
Fiscal 2023

Increase/
Decrease

YoY

Assets in custody

611.9

689.6

＋77.7

＋12.7%

Balance at the Iyo Bank
Balance at Shikoku Alliance
Securities
Sales of assets in custody

357.7

388.8

＋31.1

＋8.7%

254.2

300.7

＋46.5

＋18.3%

64.6

76.9

+12.3

+19.0%

Sales at the Iyo Bank
Sales at Shikoku Alliance
Securities

30.0

36.6

+6.5

+22.0%

34.5

40.2

+5.7

+16.5%* Excludes foreign currency deposits
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Total

Share within Ehime Prefecture as of September 30, 2023
(excluding Japan Post, agricultural cooperatives, etc.)
Deposits

Assets in Custody

Balance of assets in custody were up 12.7% yearon-year

Loans

Total

Iyo Bank

Regional banks other thanthe Iyo BankCity banks /Trust banks

Secondregional banks

Credit unions‐5‐

Credit Costs and Disclosed Non-performing Loans for the First Half of Fiscal 2023
Credit Costs
Credit costs by factor(Units: Billions of yen)First Half

Fiscal 2021

First Half

Fiscal 2022

Fiscal 2023
First Half

YoY

Credit costs total

3.9

4.4

(0.7)

(2.6)

1.5

＋2.2

Provision of reserve for general loan
losses

0.3

(0.7)

(2.5)

(4.6)

(0.2)

＋2.3

Amortization of non-performing loans

3.8

5.7

1.9

5.1

1.8

(0.1)

Bankruptcies

1.4

1.4

0.0

0.0

0.7

＋0.7

Downgrades, etc.

3.4

6.5

3.3

8.4

2.5

(0.8)

Upgrades and collections

(1.5)

(2.8)

(1.6)

(3.8)

(1.5)

+0.1

Other Group companies

0.5

0.6

0.2

0.3

0.1

(0.1)

Recoveries of written off claims (-)

0.2

0.5

0.1

3.0

0.1

±0.0

[Reference] Credit management
expense ratio (Nonconsolidated*)

0.14％

0.08％

(0.03)％(0.05)％

0.05％＋0.08P(*) Credit management expense ratio = Credit costs (Bank Nonconsolidated) / Average loan balance (Bank Nonconsolidated)

Ratio of Disclosed Non-Performing Loans

Credit costs were up ¥2.2 billion year on year
mainly due to a decrease in reversal of provision ofreserve for general loan losses as a result of adecrease in factors of reversal of provision for
COVID-19 measures and an increase in the reserve
ratio.
*For the first half of fiscal 2022, since the total amountof provision of reserve for general loan losses andprovision of reserve for specific loan losses isnegative, reversal of allowance for loan losses isrecorded in the financial statements. However, it is
not shown in the table on the left for the purpose ofcomparative analysis with the past results.

Amounts and ratios of disclosed non-performing loans under the Financial Reconstruction Act (Units: Billions of yen)
Fiscal 2021

First Half

Fiscal 2022

Fiscal 2023
First Half

YoY

Loans to bankrupt or effectively bankrupt borrowers

1.9

1.7

3.3

3.1

＋1.4

Doubtful assets

63.3

66.3

69.8

72.0

+5.7

Credit subject to specific risk management

23.7

24.3

25.0

22.9

(1.4)

Total disclosed non-performing loans

89.1

92.4

98.2

98.1

＋5.7

Ratio of disclosed non-performing loans

1.66％

1.67％

1.75％

1.67％

±0.00P

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

As bankruptcies and downgrades, etc. remained at alow level, ratio of non-performing loan continued ata low level of 1.67%.

‐6‐

Evaluation Gain (Loss) on Securities and Equity Ratio for the First Half of Fiscal 2023
¥300.1 billion

Evaluation Gain on Securities

 Maintained a top level among regional banks by conducting operations
responding to the market trend(Hundredsof Millions
of Yen)Gain / loss on
securities

Fiscal 2017

Fiscal 2018

Nikkei Average (Yen)

Nikkei average (right axis)

Fiscal 2019

Fiscal 2020

(Note) Excludes evaluation gains / losses on money held in trust

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Fiscal 2021

Fiscal 2022

14.78%

Equity Ratio

First Half of
Fiscal 2023

 Secured high soundness, sufficiently exceeding required equity ratio
Tier 1 ratio forcommon stock, etc.

Fiscal 2017

Fiscal 2018

Gross equity ratio

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

First Half of
Fiscal 2023

‐7‐

Major Numerical Targets I
 Currently, a profit level that exceeds the plan has been achieved, and the numerical targets are proceeding smoothly In addition to continuing to secure a high level of nonconsolidated profits by the Bank, we aim to achieve the main numerical targets for fiscal 2023 byincreasing “core business gross profit of Group companies (excluding the Bank),” expanding business fields by the entire Group
Major Numerical Targets

Fiscal 2021
Results

Fiscal 2022
Results

Consolidated core business gross profit¥90.4 billion

Profit attributable to owners of parent

Items

Fiscal 2023
Targets

Forecasts¥89.5 billion¥86.0 billion¥98.5 billion¥26.4 billion¥27.8 billion¥23.0 billion¥32.0 billion

Consolidated ROE (shareholders’ equity basis)

5.34％

5.40％

4.0％ or more

5.9％

Consolidated core OHR

57.05％

58.80％

Approx. 60.0％

56.2％

Consolidated common stock Tier 1 ratio

14.28％

15.00％

Approx. 15.0％

Approx. 15.0％¥8.4 billion¥8.2 billion¥9.0 billion¥8.7 billion

Core business gross profit of Group companies(excluding the Bank)**Total core business gross profit of Group companies excluding the Bank before inter-group elimination
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐8‐

Major Numerical Targets II
Deposits, etc.

Planning an average balance for fiscal 2023 totaling ¥6,915.0 billion with an increase by approx. ¥730.0 billion for three years

Plans for average deposits, etc., balance and assets in custody balance
Fiscal 2020
Results(Units: Billions of yen)

Fiscal 2021
Results

Fiscal 2022
YoY

Results

Fiscal 2023
YoY

Plan

Increase/decrease during
the Plan

YoY

Average deposits, etc., balance

6,184.6

6,623.1+438.5

6,758.3+135.2

6,915.0+156.7+730.4

Of Which, individual deposits

3,658.3

3,807.9+149.6

3,902.1+94.2

3,951.0+48.9+292.7

Assets in custody balance

593.5

607.1

+13.6

647.8

+40.7

691.0

+43.2

+97.5

Of which, balance at the Iyo Bank

348.3

361.1

+12.8

372.7

+11.6

389.0

+16.3

+40.7

Of which, balance at Shikoku Alliance
Securities

245.2

246.0

+0.8

275.0

+29.0

302.0

+27.0

+56.8

Loans

Planning an average balance for fiscal 2023 totaling ¥5,525.0 billion with an increase by approx. ¥630.0 billion for three years

Plans for average loan balance(Units: Billions of yen)

Fiscal 2020

Fiscal 2021

Results

Results

Fiscal 2022
YoY

Results

Fiscal 2023
YoY

Plan

Increase/decrease during
the Plan

YoY

Average loan balance

4,894.4

5,002.1+107.7

5,208.6+206.5

5,525.0+316.4+630.6

Corporate loans

3,246.8

3,303.7+56.9

3,483.5+179.83,773.0+289.5+526.2

Of which, within Ehime

1,438.6

1,492.5+53.9

1,602.8+110.3

1,747.0+144.2+308.4

Individual loans

1,130.7

1,157.3+26.6

1,166.6+9.3

1,164.0

(2.6)

+33.3

Municipal loans

232.2

213.1

(19.1)

199.9(13.2)

194.0

(5.9)

(38.2)

Financial Market Business Office

116.3

115.6

(0.7)

131.0

+15.4

142.0

+11.0

+25.7

Singapore Branch

168.2

212.1

+43.9

227.4

+15.3

252.0

+24.6

+83.9

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐9‐

Response to Yen Interest Rate Risk
 We have adopted a policy to mitigate the yen interest rate risk for both loans and securities. It is assumed that a rise in yen interest rates positively affects the current
portfolio as we have enough ability to withstand a rise in yen interest rates through stable procurement with deposits and utilization of a swap looking ahead to a futurerise in interest rates

Interest Rate Sensitivity and Interest Rate Maturity Ladder of Domestic
Currency Assets Under Management

 The majority of domestic currency loans are variable loans with the interest rate maturity
within one year, etc.
 A mitigating policy for interest rate risk continues for yen-denominated bonds, preparing for a
future rise in interest rates(Units: Billions of yen)
Variable Over one year, Over three
Over seven(Within one within three years, within
Total
years
years
year)
seven years
2,362.5
756.8
759.0
689.9
4,568.2
Domestic Balance
(52%)
(17%)
(17%)
(15%)
(100%)
currency Interest rateloans
sensitivity
(0.7)
(1.8)
(3.4)
(8.2)
(14.1)(10bpv)
54.5
162.3
157.8
121.3
495.8
YenBalance
(11%)
(33%)
(32%)
(24%)
(100%)
denominInterest rateated
sensitivity
(0.1)
(0.4)
(0.8)
(1.0)
(2.3)
bonds
(10bpv)(Hundreds ofMillions of Yen)

Domestic
currency
loans

Variable(Within one year)

Yen-denominatedbondsOver one year,
within three years

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Effect on B/S and P/L from rising interest rates
 If the yield curve moves up in parallel by 10 bp, interest income on loans is expected to increase,
while expansion of evaluation loss on securities is limited

Effect on interest income on loans

Effect on evaluation gain (loss) on
securities*

Up approx. ¥1.5 billion a year

Down ¥1.0 billion*After considering hedge effects of the yen swap

Status of Interest Rate Risk in the Banking Book (IRRBB)
 Although the outlier ratio has increased due to foreign currency interest rate risk-taking, yeninterest rate risk is zero due to the mitigating policy taken for yen interest rates, and a portfolio
preparing for rising interest rates continues to be established.
(Units: Billions of yen)

Employed scenario

Over three years,
within seven years

March 2020

March 2021

March 2022

March 2023

UpwardparallelUpwardparallelUpwardparallelDownward
parallel

September
2023
UpwardparallelInterest rate risk

73.6

76.3

42.0

40.3

77.9

Yen interest rate risk

0.0

0.0

0.0

40.3

0.0

Foreign currencyinterest rate risk

73.6

76.3

42.0

0.0

77.9

Tier1

613.4

687.4

666.8

699.2

718.3

Outlier ratio

12.0%

11.1%

6.3%

5.7%

10.8%

Over seven years‐ 10 ‐

I n d ex

I. Summary of Earnings for the First Half of Fiscal 2023
II. Process for Enhancement of Corporate Value
III. Group Medium-Term Management Plan
III-1. Main Strategies and Progress of Medium-Term Management Plan
III-2. Efforts for Sustainability
III-3. Profit / Loss Forecasts and Capital Policy

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Process for Enhancement of Corporate Value I
Process for Enhancement of Corporate Value By leveraging management capital of the entire Group and steadily implementing our Medium-Term Management Plan, we aim to meet the expectations of various
stakeholders and enhance corporate value of the GroupOUTCOMEINPUTOUTPUT

Human Capital Diverse human resources withexpertiseIntellectual Capital An established brand and trust fromthe local community
 Comprehensive ability of the entireGroup Advanced digital adoption
 Ship finance and market investment
know-howSocial and Relational Capital Stable operating base Highly convenient face-to-face andnon-face-to-face channels
 Network with the broad regional
coverage Diverse industrial structures of theregionCopyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

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relatedNewbusinesses

Customers

Ship relatedMarketinvestment

BPR

Digital
Touch
Point

Creation of
new services
and newbusinesses

DigitalOperation

Sincerely serving eachcustomer through humanand digital approaches

Deepening and evolving the DHD
model = “DX”
Change in company culture(fixed thinking)

Human
ConsultingPlan Stable fund raising Healthy amount of loan assets
 Sturdy level of equity
 Evaluation gain on securities

Business Strategies

Financial CapitalIT

HRdevelopment

Branches

Human
resources

Review ofexisting
business andreduction intechnical
debt Resolution of management issues
through diverse and specialized
consulting
 Improvement of earning power andproductivity
 Provision of comfortable andconvenient lifestyles
 Creating enriched lives by eliminating
anxiety for each customer’s life event

Shareholders and Investors
 Stable profit returns
 Proactive dialogues

Employees
 Realizing the five elements of WellBeing

Local Communities andRegional Environment

 Regional revitalization by resolvingsocial issues
 Reduction of CO2 emissions‐ 12 ‐

Process for Enhancement of Corporate Value II

Business Strategies

Summary of initiatives in the current Medium-Term Management Plan
Corporate related

Personal related

Response to diversifying financial needs
Consulting centering on business feasibility
assessment
Improvement in comprehensive ability by
utilizing group functions
P16

Introduction of loan products that meetcustomers’ needs
Consulting that closely supports customers’ lifeplans
Improvement in convenience throughP20
digitalization

New businesses
Consulting centering on DX
Introduction of new services utilizing theGroup’s data and knowhow
Expansion of business fields by capturing
relaxation of regulations

Ship related
Diverse consulting concerning the shipbuilding
and ocean transport industries
Fund supply based on long-term relationships
Active involvement in the maritime markets

Market investment
P18

Diversified investment placing emphasis on
securing stable profit and liquidity
Agile portfolio control in line with market
conditions

P23

P25

BPR
Cashless processing

Simplification of clerical workflow

Headquarters-centralizing

P28

Plan
Branches
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

IT

HR development

Human resources‐ 13 ‐

Process for Enhancement of Corporate Value III
Process for improvement in PBR

Fiscal 2022

Fiscal 2020

Business Strategies

New businesses
Personal related
Ship relatedMarketinvestment

4.84%

ROE by divisions*

Corporate related

6.02%
ー

ー

Materiality
Next medium-term management
plan
Improving earnings power of asset
business

4.68%
1.35%
6.33%

Aiming to increase ROE of the entire
Group through the improvement of
ROE by divisions

ROE
Strengthening non-asset business

3.10%
3.92%
6.22%

Creation of new businesses*ROE by divisions: required capital base

Effect of BPR
BPR

Total number of staff reduced by 549 (compared to April 2018)Yearly working hours per person reduced by 195 hours(compared to fiscal 2015)

Increasing the anticipated growth rate by realizing sustainable profit growth and maximizing
long-term shareholder benefits

Maximizing group synergies

PBR

Refinement of human resources
capabilities

Reducing the cost of shareholders’ equity with smooth communication with the market

Deepening stakeholder engagement
Profit attributable toowners of parent¥18.0 billion

Dividends and purchaseof treasury stock¥4.4 billion

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

¥27.8 billion¥9.3 billion

PER

Enhancement of governance‐ 14 ‐

I n d ex

I. Summary of Earnings for the First Half of Fiscal 2023
II. Process for Enhancement of Corporate Value
III. Group Medium-Term Management Plan
III-1. Main Strategies and Progress of Medium-Term Management Plan
III-2. Efforts for Sustainability
III-3. Profit / Loss Forecasts and Capital Policy

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Business Strategies _ Corporate Related I
Business Feasibility Assessment

Average Corporate Loan Balance

Customer issues and needs

Business foundation

GrowthPurchase
Logistics

Sales
Marketing

Shipment
Distribution

Production

MaturedServices

Purchase
Logistics

Production

Reform/Decline
Shipment
Distribution

Sales
Marketing Average corporate loan balance increased due to increased demand for working capital, affectedby soaring raw material and commodity prices(Hundreds of Millions of Yen)

Services(Various issues and needs in business stages and value chains)

Formulating concrete supporting measures forenhancement of customers’ corporate value

Identifying and sharing of customers’ management issues

Number of Mirai Support Sheet
prepared (cumulative)
Number of businessfeasibility assessment
investigation committee
held (cumulative)
2,062

2,354

Banking

7,268

Solution Revenue Results(Millions of Yen)

Securities

Guarantee

Systems

CapitalLease

Think tankCredit cards

Fiscal 2022

First half of
Fiscal 2023

 Although overseas and derivatives revenues, which had been strong in the previous fiscal year,
declined due to the rapid depreciation of the yen, corporate solutions revenue, mainly financerelated, business succession, and M&A, increased year-on-year

2,394

1,784

Fiscal 2021

Fiscal 2020

DX consulting×

Support inconsideration ofcooperation withpartner companies,
external experts,
local public entities,
etc.

OthersOverseas, derivatives
Corporate solutions
revenue

6,940
6,257

Diverse consulting lineup

5,393

Diverse funding

M&A / businesssuccession

ICT consulting

Lease

Staffing business(First half)
Fiscal 2020

Fiscal 2021

Fiscal 2022

First half of
Fiscal 2023

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Credit cards(etc.)

Fiscal 2020

Fiscal 2021

(Fist half)

Fiscal 2022

First half of Fiscal 2023

‐ 16 ‐

Business Strategies _ Corporate Related II
Number of cases for M&As
and Business Succession

Banking×

Lease Business

Capital Although the number of contracts did not reach the target, several projects are in progress, and theamount of revenue is expected to exceed the previous fiscal year’s level(Millions of Yen)

(Number)Business
succession

Business succession and M&A revenue (right axis)

Fiscal 2020

Fiscal 2021

Staffing BusinessBanking

Fiscal 2022

×First half of
Fiscal 2023

Think tank

 Steadily increased to a total of 1,859 inquiries including 332 contracts since the service started in
April 2020
(Number)Lease Both the number and amount of contracts steadily increased, as the Bank and lease company
collaborated to meet the diversified financial needs of customers(Number)(Millions of Yen)

Number of contracts

Fiscal 2020

Fiscal 2021

Fiscal 2022

Credit Card BusinessFirst half of
Fiscal 2023

Banking

Fiscal 2020

×Amount of contracts

Fiscal 2021 Fiscal 2022

First half of
Fiscal 2023

Credit cards

 Both the amount of transactions and number of cards issued steadily increased as a result of
focusing on problem-solving proposals in response to the increasing cashless B2B transactions andthe revised Electronic Bookkeeping Act(Number)(Millions of Yen)

Number of contracts

Amount of transactions via corporate cards

Number of new inquiries

Fiscal 2020

×Banking

Cumulative number of corporate cards issued (right axis)

Fiscal 2021

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Fiscal 2022

First half of
Fiscal 2023

Fiscal 2020

Fiscal 2021

Fiscal 2022

First half of
Fiscal 2023

‐ 17 ‐

Business Strategies _ New Business I
Launch of Iyogin Advertising Services
 New services unique to the Group aimed at providing marketing support to our local customers, utilizing the Group’s advertising media and marketing and data analysis expertise Iyogin Digital Solutions (IDS) will be in charge of advertising agency business, aiming at synergies with DX consulting in terms of data utilization
 Handling scheme
Advertisers
Utilization proposal

IDS(Advertising agency)

Use ofAdvertisingServices

Iyo Bank(Advertising media)

Sending DMs

Customers

Dissemination
through social media
Posting on websites

Application for use

Direct mails (DMs)Social media

Websites Include advertisements about the advertisers’ products andservices in our DMs sent to customers

 Collaborate with our official X (formerly Twitter) account to
conduct campaigns offering advertisers’ products, discounts,
and other special offers

 Post advertisers’ banner ads and article ads on our
website and column site “iyomemo”

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐ 18 ‐

Business Strategies _ New Business II
Status of Iyogin Digital Solutions

 Number of consultations exceeded 300, and individual support results increased steadily In October, IDS took on the responsibility of a new front operations role for advertising
services, responding to a wider range of customer needs
 Ideal State“DX consulting” for solving true problems
Support for “digitalization of the entire company”

Iyogin Business Succession and Growth Support Fund

 The business domain of capital is expanded due to mitigation of requirements for investment inbusiness succeeding companies, etc.
Total amount of fund¥2,000 million

General partner (GP)Iyogin Capital Company Limited

Limited partner (LP)The Iyo Bank, Ltd.

Duration period

10 years

Support for “digitalization of operations”

 Specific support menu Support for more efficient sharing ofinternal information
 Support for developing app creation
personnel
 Support for more efficient back-office
operations
 Support for more efficient attendanceand salaries related operations, etc.

(Number)

Proposals (single month)
Proposals (cumulative)

 Development and maintenance of
applications
 Support for streamlining operations andintroducing SaaS Advice toward overall improvement in
operations, etc.
 Provision of advertising services■ Breakdown of contracted cases (%)
Business improvement and planning support
業務改善・計画策定支援 10％
10%i. Issues of businesssuccession

ii. Issues of growthstrategyiii. Issues of capital＜Example of investment＞
・Location: Within Ehime Prefecture
・Industry: Manufacturing
・Purposes: Support for growth strategy
and capital policy looking
ahead to IPO

Holding of Intra-Group Business Plan Competition
 Discover new business ideas utilizing diverse knowhow and foster company culture of challenge
Name

Iyogin Group Business Innovation 2023

Participants

All employees and officers of the GroupTheme

New businesses that lead to solutions to regional issues
Application deadline: December 22, 2023

April

May

June

July

August September

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

More efficient information sharing,developing personnel
More efficient attendance andsalaries related operations

More efficient accounting
operations
Business improvement andplanning support

Schedule

First stage screening (document examination) results announcement: late
January 2024
Second stage screening (presentation) : mid-July 2024

‐ 19 ‐

Business Strategies _ Personal Related I
Providing Timely Support According to Life Stages

Average Individual Loan Balance Maintain average individual loan balance by revising mortgage loan products andimplementing various campaigns

Changes in assets

Saving and increasing
Support for asset formation withlong-term diversified investment
Preserving & bequeathing
Support for smooth asset
succession

Borrowing
Procedures completed on
app and website
Support for necessary funds
Easy and convenient
Proposals for
comfortable andconvenient life

(Hundreds ofMillions of Yen)

Preparing
Proposal of the optimum
insurance plan in case of an
emergency

Life stage

Simulation tool that allows customers to chart various future plans Enables the sharing of dreams that customers want to achieve and the visualization of changes inbalance and assets to create life plans for each customer Renewal in April 2023
 Propose various financial improvement measures
tailored to each customer based on input anddiagnostic results.
 Simulations after improvement measures are
implemented are also displayed on results screen

Fiscal 2021

Fiscal 2020

First half offiscal 2023

Actual Revenue on Assets in Custody Revenue on assets in custody increased slightly YoY due to provision of customer-oriented
information and various consulting proposals(Millions of Yen)
Iyo Bank

Shikoku Alliance Securities(First half)（上期）

Fiscal 2020

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Fiscal 2022

Fiscal 2021

(First half)（上期）

Fiscal 2022

First half offiscal 2023

‐ 20 ‐

Business Strategies _ Personal Related II
Easy and Convenient

Borrowing

A bank on your palmHouse purchasing plan with a smartphone

Making the app the most important channel along with branches The app allows from opening of account to performing various
procedures on the app
 Time deposit special to AGENT app(higher interest rates than those displayed at branch) Transfer function and account registration function in opening ofan account

Promotion of housing loans with HOME infrastructure HOME rate* in the first half of fiscal 2023 was 81%, keeping a high level Expanded the line-up of group credit life insurance, renewed step-up interest rate type products,
and introduced variable interest rate products(Hundreds ofMillions of Yen)

Balance of housing loans
HOME rate*

Growing AGENT app (below includes scheduled implementation)

 January 2024: Opening of investment trust and NISA accounts,

purchasing and cancelling functions of investment trusts, COTRA
tax and public money payment function
 Spring 2024: Interactive communication function with customers
NumberEnd offiscal 2023
TargetingNumber of account registration (cumulative)
Number of installations (cumulative)
End of first halfof fiscal 2023

100,000
users

60,000Fiscal 2020

Fiscal 2021

Fiscal 2022

First half of fiscal 2023
*HOMEを利用した住宅ローン申込比率* Percentage of housing
loan application using HOME

New card loan service that issues notifications on insufficient amount
Promotion of card loans centering on SAFETY February 2022: The number of contracts steadily increased after “Premium Course”* was introduced Aiming for further expansion through enhanced promotion and campaigns, with the installed function forincreasing the borrow amount(Number)Number of new contracts (cumulative)* Number of account registrants

Second half offiscal 2021

First half offiscal 2022

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Second half offiscal 2022

First half offiscal 2023

Second half of fiscal 2023
Plan

Fiscal 2020

Fiscal 2022
First half of fiscal 2023*「借入枠」ではなく「リスクランク」に応じて金利を決定* Offers interest rates based on “risk ranking” instead of the “borrow amount”
Fiscal 2021

‐ 21 ‐

Business Strategies _ Personal Related III
Saving and Increasing

Preserving and Bequeathing

Sophisticated consulting services through cooperation between
the bank and securities company

Responding to diversified and enhanced needs for bequeathing by
combined efforts of bank branches and headquarters

Preparing
Tailored insurance consulting at every touchpoint
Branches in Ehime
Prefecture

Placing 102 insurance consultants at 57
locations in Ehime Prefecture

Insurance plazas

Consulting available also on Saturdays,

Iyo Bank
伊予銀行

Providing support for long-term stable asset
formation according to each customer’s life
plan

Bank branches

Providing financial services that utilize
proper functions of insurance, after
understanding customers’ “wishes”

Realizing consulting that utilizes a wider
range of products for upper class andcorporation owners, etc.

External relations
division at theheadquarters(wealth advisors)

Providing a higher level of value including
non-financial services such as will writing
toward realizing “wishes”

Placing 11 locations in Ehime Prefecture
Sundays, and holidays

オンライン
Onlineconsultation
相談

Possible to consult easily using a PC,
tablet or other devices from home without
going out

＜Number of Customers and Number of Policies Held in Level Premium
Insurance (Cumulative)＞(Number)Number of customers (cumulative)

Fiscal 2021

(Hundredsof Millions
of Yen)＜Change in Balance of Assets in Custody＞*Including individual deposits in foreign currencies
Iyo Bank＜Number of Trust-Related Contracts (Cumulative)＞(Number)

Shikoku Alliance Securities

Number of policies held (cumulative)

Fiscal 2020

四国アライ
Shikoku
Alliance
アンス証券
Securities

Fiscal 2022

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

First half offiscal 2023

Fiscal 2020

Fiscal 2021

Fiscal 2022

First half offiscal 2023

Fiscal 2020
Fiscal 2021
Fiscal 2022
First half of* Trust operations excluding handling of the bequeathing process, taking fiscal 2023
into consideration a decrease due to execution of wills, etc.

‐ 22 ‐

Business Strategies _ Ship Related I
Shipbuilding and Ocean Transport are Important Local Industries

 In Ehime Prefecture, there are approximately 80 offices of vessel owners, and they effectively own
roughly 30% of the ocean-going vessels owned by Japanese companies
 Approximately 15% of all ships constructed in Japan are from Ehime Prefecture. The figure rises toroughly 30% if combined with the promotion of ships constructed in other prefectures by Ehimeheadquartered shipbuilding yard groups.
Number of ocean-going vessels owned by domestic
New vessels constructed in Japan (Fiscal 2020)
shipowners (as of September 2020)
Ehime Pref.
Ehime Pref.
15.7％
32.7％
(1.87 million gross tons)(1,199Other than
Other thanvessels)
Ehime Pref.
67.3％

Ehime Pref.
84.3％

No. 1 in Japan

No. 1 in Japan

Total number of vessels in Japan: 3,663(including operators)

Nationwide new shipbuilding completed:11.92 million gross tons

Coherent Investment and Loan Policy not Affected by Market Conditions
 Emphasis on a well-balanced portfolio not depending on specific projects and assets
 Emphasis on long-term relationships and judgements about customers’ comprehensive ability ina multilateral manner
 Utilization of forecast of customers’ future profit or loss calculated based on ship cost data accumulated
over years

Loan Balance for the Maritime Industry

 Significantly increased by ¥172.8 billion compared to the end of the previous fiscal year, against the
backdrop of an increase in large-scale overseas ocean transport projects and the weaker yen(Hundreds ofMillions of Yen)

For other maritime industries and overseas
For domestic and overseas ocean transport

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Status of Balance Changes by Segment

 For Domestic and Overseas Ocean Transport

 Advance repayment by selling ships decreased, and the number of large-scale projects executed increased.
 The substantial depreciation of the yen against the U.S. dollar and Swiss franc led to an increase in the amountof foreign currency-denominated loans translated into yen.
(Hundreds of Millions of Yen)

Breakdown of changes in balance for domestic and overseas ocean transport in first half of fiscal 2023
(517)
(115)

Financial position,
operating balance
and market value

Management
policy and future
prospects

Impact from change in exchange
rate per yen
US dollar: 1.43 billion yen
Swiss franc: 2.61 billion yen(As of September 30, 2023)
End ofMar. 2023

Comprehensive
abilitySolidrelationshipFirst half offiscal 2023

New
transactions

 For Other Maritime Industries

Scheduledpayment

Advancerepayment

Impact of foreignexchange rates

End ofSep. 2023

 Modest increase from the end of the previous fiscal year mainly due to capital investment for shipbuilding and ship
equipment related companies

 For Overseas Offices While the balance of U.S. dollar-denominated loans remained stable, the amount converted into yen increased due to thesignificant depreciation of the yen
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐ 23 ‐

Business Strategies _ Ship Related II
Environment Surrounding Ship Owners

Solutions the Group Aims to Provide

Severe investment environment
Market risk

Costs of producing new ships remain high,and charter periods are shortenedInterest rate andexchange risk

Rising U.S. dollar interest rate, risk of yen appreciation in the future

Regulatory risk

Tougher requirements about measures against climate change, etc.

Improvement in Risk
Consulting Capabilities Concerning
the Shipbuilding and Ocean
Transport Industries

 Providing methods to control risks for ship owners
 Group-wide efforts to solve issues marine equipment manufacturers wehave business relationships with are facing

Improvement in Research andAnalysis Capabilities Concerning theMaritime Industry in General Gathering of extensive information centered on Tokyo and Imabari More advanced case evaluation based on gathered data and market
position analysis

Provision of Diverse
Funding Sources

 Composition of syndicated loans based on the framework of the TSUBASA
Alliance, etc.
 Loans for higher priced next-generation-fuel ships by sophistication offinancing methods

Enrichment in Activities Connecting
Domestic and Overseas
Maritime Industries

 Aiming for business matching and case intermediation through a uniqueinformation network
 Holding exchange meetings to connect members of the maritime cluster

 IMO has tightened the goal of total GHG emissions reduction, including those in the fuelmanufacturing process, to zero by around 2050 as compared to 2008 levels.
2008
Basic year ofemissions2030 Target
30% reduction in
total emissions

2040 Target
80% reduction in
total emissions

Around 2050
GHG zero emissions(Note) IMO: International Maritime Organization; (Note) GHG: Greenhouse Gas

Efforts to Support Decarbonization in Ocean Transport Loans for ships manufactured by Japanese
shipbuilding yards that have high fuel efficiency
 Loans for next-generation fuel ships
 Loans for ships following the futureenvironmental regulations<Ratio of ships designed with environmental initiativein mind in loan decided>

Iyogin Group Presents Maritime Industry Forum in Imabari



■EEDI Phase 3■Next-generation fuel ships■Conventional ships andused ships※Within ship-related cases
approved in the recent 6 months

Held on October 12, 2023 at Imabari Kokusai Hotel
Lectures by the heads of major general trading companies and major Japanese shipping carriers on how to respond to the current changes
in the environment
A panel discussion with the top management of the local members of the maritime cluster discussing the future prospects of the local
maritime industry
A social gathering with approximately 360 participants provided an opportunity to exchange information

Signing the Poseidon Principles
In October 2023, the Iyo Bank became the first regional bank to sign and participate in the Poseidon Principles.
The Principles are a framework to support the achievement of the IMO’s targets from a financial perspective, and member
banks are required to calculate the degree of climate change compatibility of the entire ship financing portfolio based on theannual CO2 emissions data of the vessels they finance and to publish them annually.
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐ 24 ‐

Business Strategies _ Market Investment I
Investment Policy by Risk Category

 Making diversified investment placing emphasis on liquidity, considering total profit and loss leading to stable profit
and future profit（Risk Category）(Direction)(Policy for investment)

Yen-denominated Restrain new ●Keep a certain balance as “bond unit,” an asset inversely correlated with stocks.
investments ●Restrain new investment in yen bonds, and restructure portfolios to capture rising interest
bonds

Securities Performance Aiming for stable gain on securities management and management in consideration of total profit or loss.
(Hundreds ofMillions of Yen)

(Hundreds ofMillions of Yen)

Realized profit/loss (= Interest and dividend income + gain (loss) related to securities, etc.)
Total profit/loss (= Periodic profit/loss + change in gain/loss on evaluation)

rates after monetary policy normalization.

●For foreign bonds (with forex hedges), the balance and duration will be adjusted based on
Foreign bonds
Adjust balance
the timing of future interest rate cuts and other factors.
(with forex hedges)

Foreign bonds(without forex
hedges)Keep certain ●Adjust the balance and implement strategic re-balancing according to the situation whilebalancekeeping a certain amount to secure stable profit from carry trading.

Domestic andoverseas stocks

Decrease●Sell off stocks held for strategic purposes if the necessity of holding is not recognized.
●Purchase stocks held solely for investment purposes of which growth is expected in themedium- to long-term view.

Alternatives, etc.

Not change●Consider investment to secure stable carrying and portfolio diversification.



Increase/decrease in Balance of Securities by Risk Category
YenDenominatedbonds

Foreign bonds(with forex hedges)

Foreign bonds(without forex hedges)

Domestic andoverseas stocks

Fiscal 2022

Fiscal 2021

First half offiscal 2023

Total Yield(Domestic
currency yield)(Foreign
currency yield)

Total for last 10 years(right axis)*Only includes first half
for fiscal 2023

(1,000)Changes in 10 BPV of Foreign Currencies

After fiscal 2021, the balance of bonds was reduced, and the balance was restored in fiscal 2023, and the number of foreign
bonds without forex hedges increased significantly.

(Hundreds ofMillions of Yen)

(96)

(300)

 Strategically take interest rate risk with foreign bonds without hedges (offsetting interest rate risk and foreignexchange risk)
 Somewhat cautious with foreign bonds with hedges, with risks controlled by determining the timing of futureinterest rate cuts

Alternatives, etc.

(Hundreds ofMillions of Yen)

Foreign bonds(with forex hedges)

Foreign bonds(without forex hedges)

Foreign bonds, total(1,000)(2,000)(3,000)* On a*簿価ベース
book value basis

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Fiscal 2019

Fiscal 2020 Fiscal 2021 Fiscal 2022

First half offiscal 2023

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

First half offiscal 2023
‐ 25 ‐

Business Strategies _ Market Investment II
Changes in the Balance of Yen Bonds

Change in Capital of Foreign Bonds
 The continuing weaker yen resulted in a gain on sale of foreign bonds without hedges, as in the previous fiscal year Also recorded a gain on sale of foreign bonds with hedges as a valuation loss was recorded in the previous fiscal year
(Hundreds ofMillions of Yen)

Foreign bonds(with forex hedges)

Foreign bonds(without forex hedges)

Foreign bonds, total

 New investment consisting only of underwriting of municipal bonds, etc., and government bonds (mostly pricelinked) contributing significantly to profits due to current inflation
 Started hedging through interest rate swaps in 2022 to further suppress risk of yen interest rates
JBGs

Inflation-indexed
JBGs

Fiscal 2015

Fiscal 2016

(Hundreds ofMillions of Yen)

15-year floating-rate
JBGs

Municipal
bonds

Other

Interest rate
swap

(100)
(200)
(300)

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

First half offiscal 2023

Profits From Foreign Bond Carry Trading Foreign bonds with hedges in fiscal 2023 are expected to have a negative spread Foreign bonds without hedges increase in carry levels due to rising interest rates, covering negative spread offoreign bonds with hedges(Hundreds ofMillions of Yen)

Foreign bonds(with forex hedges)

Foreign bonds(without forex hedges)

Foreign bonds, total(2,000)Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Portfolio Risk Sensitivity *After considering hedging

First half offiscal 2023

■Portfolio risk sensitivity (As of September 30, 2023)◎Foreign bonds (without forex hedges)
Exchange ¥10V ¥33.0 billion◎Stock Nikkei Stock Average ¥1,000V ¥9.5 billion

Duration ◎Yen-denominated bonds*
2.05 years◎Foreign bonds (with forex hedges) 3.70 years■Changes in 10 BPV (Yen-denominated bonds)*(Hundreds ofMillions of Yen)

(20)
(40)

Fiscal 2015 Fiscal 2016

Fiscal 2017

Fiscal 2018

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Fiscal 2023
Expected

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

First half offiscal 2023

‐ 26 ‐

Business Strategies _ Market Investment III
Status of Foreign Currency Investment and Procurement[September 30, 2023]

Change in Loan Balance [Financial Market Business Office]<Loans+ Market Investment (Securities) >＜貸出金＋市場運用（有価証券）＞

Loans in an increasing trend mainly for overseas corporate projects(Hundreds ofMillions of Yen)

Year-end balance

Mainly assets with high liquidity

Securities

Loans, etc.

Investment

Mainly assets with low liquidity

Procurement

Long-term
procurement

Deposits, etc.

Short-term
procurement

Repo
procurement

Choose foreign currency procurement methods in line with asset composition

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

First half of
Fiscal 2023

＜Loans, etc.＞

Portfolio by Region and Industry [Financial Market Business Office]<Loans, etc.>

Short-term procurement is conducted for substantial short-term loans

Investment

Loans

Loans with multicurrency terms
Liquidity gap is negative(excessive procurement)

Stability gap is positive(excessive investment)
Procurement

Deposits, etc.

Long-term
procurement

Short-term
procurement

Cash flow risk is guaranteed with commitment lines

■日本
■北米
■欧州
■アジア・オセアニア■ Japan■ NorthAmerica■ Europe■その他■ Asia/Oceania ■ Other
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

■電気・ガス■金融 ■運輸■Electricity
and gas■製造■Manufacturing■ Finance■各種サービス ■その他
■ Transportation■ Various services ■ Other

安定性ギャップ：貸出金等－（預金等＋長期調達）
Stability
gap: Loans, etc. - (Deposits, etc. + Long-term procurement)
流動性ギャップ：貸出金等－（預金等＋長期調達＋コミットメントライン）
Liquidity
gap: Loans, etc. - (Deposits, etc. + Long-term procurement + Commitment line)‐ 27 ‐

Cross-Sectional Efforts Supporting Business Strategies _ BPR I
BPR Strategy Efforts
In preparation for the next medium-term management plan, we will further reduce the amount of administrative work emphasizing the establishment of BPR measures and therefinement of human resources, and further accelerate the improvement of productivity of the entire Group

2024– Next medium-term management planLong-term vision: “ corporate group continuing to create and provide new value”

Previous ten-year vision

2021
2015

2018

2019

Fiscal 2015 Medium-Term
Management Plan

2020

Fiscal 2018 Medium-Term
Management Plan

Fiscal 2021 Medium-Term Management Planby minimizing administrative and routine work andenhancing manpower available forcustomer interactions and planning work

［Bank branches］
Cashless processing［Bank branches］
Simplify clerical workflow

2023

Aim to increase productivity of the entire Group

Increase productivity and reduce
cost by optimizing resource
allocation

Improve business processes
to increase productivity

2022

Agile development to gradually expand functions■ Inheritance function ■ Transfer function
AGENT tab

Satto Madoguchi(Quick Counter)［Bank branches］
Development of headquartersCentrally receiving Centralized document
centralizing measuresphone calls

storage

HOME/SAFETY

AGENT AppOperation Support Center
Loan-Related Administrative
Work Support Center

Operation of new branch system[Introduced at all branches by June 2023]
Expansion/sophisticationof target operations

Centralized sections[Headquarters] Increase productivity project for headquarters[Headquarters] Group company collaboration / BPR
horizontal deployment
Bank measureshorizontally deployed×Introduction of RPA
Promotion ofbusiness automation

Electronic contract system AI utilization
In-house reskilling
In-house development
systemCopyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Headquarters Operation
Support Center

Bank

System deployment

Shift to the HD
structure

Establishment/changes in mindset
HR development/reskilling
Improved
utilization rate

[Events] Rebuilding Head Office/Renewing core system＜Administrative staff in charge of operations＞
Minimize administrative work and shift focus of branchesfrom “administrative work” to “problem solving”＜Administrative staff in charge of loans＞
Reinforce the manpower that can be invested indecision-making work by separating clerical work from
judgment and centralizing clerical work at
headquarters＜Bank Headquarters/Group Companies＞
Minimize “clerical/routine work” and increase
manpower that can be invested in “planning work”
Horizontally deploy various BPR measures within theGroup to improve productivity of the entire Group‐ 28 ‐

Cross-Sectional Efforts Supporting Business Strategies _ BPR II
Reduction Effects of BPR Measures and Resource Shifting
Reducing costs by reducing overall number of employees, shifting resources of human resources and time generated by BPR, and reskilling employees to find mgmt. resources necessary for business strategy.
Number of administrative staff in charge of
operations: Minus 455 administrative staff
Reduced 549 staff members

1,306
851

Fiscal 2017800

1H of Fiscal 2023 Fiscal 2023

Number of administrative staff in charge
事務人員数：△42人＞
of＜融資係loans: Minus
42 administrative staff

Surplus human resources andtime generated by reduction
are shifted to a higher level ofoperations

Administrative work

Administrative work

Routine work

Routine work
Headquarterscentralizing/Improvement

Headquarterscentralizing/Improvement

433
391

Planning/Creative work

Planning/Creative work

350

Sales/Consulting work

Sales/Consulting work

Loans/Screening work

Loans/Screening work

Fiscal 2017

[Apr. 2018][Sep. 2023]

Generalists

2,350 persons

2,207 persons Minus 143

Office/Staff

1,874 persons

1,468 persons Minus 406

Total

4,224 persons

3,675 persons Minus 549

Shifting resources to further improvement of headquarterscentralizing measures□ Loan-Related Administrative Work Support Center: 18 persons□ Headquarters Operation Support Center: 9 persons□ In-house VC center/Telephone reception center: 14 persons, etc.

Shifting resources to planning and creative work at headquarters□ RPA/digital workflow development staff: 4 persons□ Enhancement of headquarters external relations and DHD-related
measures: 82 persons□ Ship-related staff: 9 persons□ Enhancement of system development staff: 39 persons□ New company “Iyogin Digital Solutions Co., Ltd”: 7 persons, etc<Yearly working hours (per person): Minus 195 hours (compared to 2015)>

1H of Fiscal 2023 Fiscal 2023

Headquarters workload reduction: Minus 183 thousand hours/year(Headcount equivalent: Minus 93 administrative staff)

2,116 hours

200 thousand hours
183 thousand hours

Fiscal 2017

Ways of working alsochanged greatly

1H of Fiscal 2023 Fiscal 2023

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

1,921 hours

Fiscal 2015

Fiscal 2022

‐ 29 ‐

Cross-Sectional Efforts Supporting Business Strategies _ Branch Plan
Develop a system in which face-to face and non-face-to-face channels and humans are interlinked and enhance customer convenience by enhancing each channel, with the aim of
deepening and evolving the DHD model
Review Branch Functions
Digital Touch Points

Enhance branch functions
Shift focus from “administrative work” to“problem solving”

Maintain real touchpoints with customers
Develop labor-saving branches tailored toregional characteristics

 Shift of all branches to a next-generation branch wascompleted in Ehime Prefecture.
 Extension of business hours: Introduced at 34 branches in
Ehime Prefecture.

 Transition to labor-saving branches: *16 (as of Sep. 2023)* Micro branches, branches specialized in transactions, and branches
located in government offices＜Next-generation branches＞
107 branches＜Labor-saving branches*＞

110 branches

23 branches

More sophisticated banking apps
From “go”-to bank to “do”-at bankMore touchpoints with more sophistication
Easier to use and more convenient

AGENT Iyo Bank on your palm

HOME House purchasing plan with a smartphone■Added functions New

SAFETY New card loan service that issues notifications

 Money transfers
 Inquiries of housing loan balances and contract details
 Extended video chat hours (until 5 p.m.), etc.

on insufficient amount

LIFE PALETTE Simulation tool that allows customers
to chart various future plans<AGENT App Shift Rate*>
65 branches

11 branches
4 branches

Jun. 2021
Fiscal 2019

Fiscal 2022

Fiscal 2023 Plan

Fiscal 2022

Fiscal 2019

Fiscal 2023 Plan

Review of Branches and ATM Locations< Number of branches/Number of ATMs>(Branches)

Branches

ATMs (right)(ATMs)

Sep. 2022 Dec. 2022 Mar. 2023 Sep. 2023

* Number of app uses / (in-store tablet reception + number of app uses)）

Advanced Use of Branches and Environmental Friendliness< Number of branch visits>(Persons)

A portal site for corporations that integrates entrances tovarious digital services

Release■ Branches with rental spaces targeting at third parties

Average number of customers per day per branch in Ehime Rebuild branches with rental space targeting at third parties forrevitalization of the community based on community needs
 Both Fukuoka and Nagoya branches are completed in June 2024.

The number continues to decrease.

■ Environmental accommodation
 Implemented energy-saving measures such as LEDs at existing
branches Considering energy creation measures such as installation of solar
power generation equipment in branches
Mar. 2019

Mar. 2023

Mar. 2024 Plan

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Mar. 2019

Mar. 2023

Sep. 2024＜Fukuoka Branch＞＜Nagoya Branch＞‐ 30 ‐

Cross-Sectional Efforts Supporting Business Strategies _ IT Plan
Establish IT governance that balances quick and flexible digital responses to the external environment and customer needs, and maintenance of a safe, stable, and secure banking system
Quick and Flexible Digital Responses to External Environment andCustomer Needs

Maintenance of a Safe, Stable, and Secure Banking System Construction of a next-generation core system

 Improvement and sophistication of data utilization system

A basic agreement was reached with Hitachi, Ltd. on the construction of the next-generation core system based on Hitachi’s open corebanking package OpenStage.

 139 people in 12 departments can now use data analysis tools.

The Main Issues of the Current System and the Next-generation Core System
Main current issues

Next-generation core system

7 dept.

Latest architecture leveraging open technology

Aging of applied technology＜Number of departments that use data
analysis tools>＞
12 dept.

Adopt packages to shorten training period and use external
human resources

Features of Next-generation Core System
Channel① Provide new values (connect and expand)② Improve development efficiency (faster and safer)③ Enhance data utilization (provide added value)

Product
composition layer

Passbook entry andsettlement layer

Business administrationand supervisory levels

Branches
ATMs
Apps
External
services

Banking hub
systemPassbook
entry andsettlement
systemInformation
SystemPeripheral
System・・・■Data analysis andmodel building tool

7
Mar. 2021

Secure system humanresources＜Number of people who can use data analysis tools＞
139 persons■Visual analytics tool
104 persons

Sep. 2023

Mar. 2021

Sep. 2023

Develop Sophisticated Analysis Model Multiple divisions collaborated to develop a model to predict fluctuations in corporate
finances based on resource prices and other factors.
＜Model image＞

Fluctuations inresource prices
and exchange
rates

Predict fund demand triggered by market fluctuations

Increase indemandfor funds

Increase indemandfor funds

Increased
manufacturing prices

Patented

Increase indemandfor funds
Rising wholesale
pricesRising retail prices

Establish IT Governance Optimization of IT Investment
Purposes

Implementation details

Proper control of IT costs

Refine long-term IT cost forecasts through formulation of long-term renewal
plans

Secure strategic investment space

Reduce base cost of investment

IT investment for overall optimization

Review planning process and prioritize IT investment opportunities

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

＜March 2021 (before current medium-term plan)＞＜Direction to aim for in the future＞

Strategy

IT costs are on the risedue to strategic
investment

Classify investment costs into
strategic investment and baseBase‐ 31 ‐

Cross-Sectional Efforts Supporting Business Strategies _ Personnel Development Plan
Aim to be a group that can create and provide diverse values by developing human resources who can play an active role in their respective fields ofexpertise with “customer-oriented” as our basic philosophy
Co-creative Human Resources With Advanced Expertise Implementing various measures based on three key points, in order for each employee to create their strength and improve their area of expertise

SupportRisk management

Planning

Technology

MarketShip

Individual

Corporation

Career fields

Personnel with an Area of Expertise
Match rate with wishes of career
fields*93.8％*Match rate between career fields ofduties that employees are currently
performing and those of duties that theywish to do (including their second choice) Classify specialized skills into eight career fields with the purpose of
specialization and improvement of operations

 Enhancement of short-term dispatch trainings, etc.
 Expanding the scope to Regional Vitalization Division
and Shikoku Alliance Securities and providing for
employees of 8 divisions and companies, an opportunity
to attend training, as well as autonomously consider
their own career development
 Expansion of participants of level-based workshops
 Jointly holding level-based workshops, etc., expanding
the eligible employees into staff from the all Group
companies (Number of trainees at Group companies(excluding the Bank): 85)

Establishment of an Environment Which Facilitates
Autonomous Learning

Responses to Diversifying Careers Expansion of online learning tools, etc.

 Introducing training programs by business (field) open to all
employees
 Expansion of eligible employees of training through dispatch
to external institutions
 Promotion of challenges to advanced qualifications
 Continuation and expansion of qualification acquisition
incentive system Increase in shorterclasses on demand Continual use of training
apps

Specialists by Fields
 Development at specialized departments, dispatch to specialized institutions outside the Group, or other programs are conducted with four fields that require a high level of expertise and skills as pillars
 Determine “advanced qualifications” in each field to promote autonomous learning and qualification acquisition by employees
MarketCorporation/Individual/Ship/Planning Number of employees holding qualifications of attorney,
Certified Public Tax Accountant, MBA, Small and Medium
Enterprise Management Consultant, 1st-grade CFP, TOEIC
700 points or higher, etc.

 Number of employees holding qualifications of securities
analyst, Certified International Investment Analyst

Persons

Persons

Fiscal 2020

Fiscal 2021

Fiscal2022 First half of Fiscal 2023

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Technology

Planning (Digital Business) *Number of employees holding qualifications of Information Technology Strategist, Systems Architect, Network Specialist,
Database Specialist, Registered Information Security Specialist, etc.

Persons

Fiscal 2020

Fiscal 2021

Fiscal2022 First half of Fiscal 2023

Fiscal 2020

Fiscal 2021

Fiscal 2022

First half of Fiscal 2023

‐ 32 ‐C o nte nt s

I. Summary of Earnings for the First Half of Fiscal 2023
II. Process for Enhancement of Corporate Value
III. Group Medium-Term Management Plan
III-1. Main Strategies and Progress of Medium-Term Management Plan
III-2. Efforts for Sustainability
III-3. Profit / Loss Forecasts and Capital Policy

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Efforts for Sustainability _ Efforts for TCFD Recommendations
Scenario Analysis

Sustainable FinanceGoals

 Physical Risks
Suspension of business of customers anddamage on collateral following
occurrence of flood damage

Increase in credit-related expense(through 2050)
A total of ¥4.6 billion to¥7.5 billion

 Implement ¥1.4 trillion (including ¥700.0 billion in the environmental area) from fiscal 2021 through2030
 Supporting customers’ efforts toward sustainable management, which is of increasing social interest

Results
 Cumulated transaction amount from fiscal 2021: ¥316.0 billion (including ¥193.3 billion in the environmental area) Transition Risks
Transition to a decarbonized society throughtightening of regulations on
restrictions of carbon emissions, introductionof carbon tax, etc. in “electric power” and“gas” sectors

 Key sustainable finance projects
Increase in credit-related expense(through 2050)
A total of ¥0.08 billion to¥2.6 billion

 Expanding the scope of analysis
Transition Risks in Ocean Transport Sector
 Due to the nature of our portfolio, shipowners in the ocean transport sector, which has a large
loan amount, will be selected as a new target for transition risk analysis, and the increase in creditrelated expenses by 2050 will be calculated.
 In the transition to a decarbonized society, a scenario is being prepared for transition risks related
to the “shift to environmentally friendly vessels,” which may affect shipowners, based on theassumption of the impact to the ocean transport sector as stated in the table below.

Contents

Assessment￥76.7 billion

Sustainable finance and green bonds￥28.3 billion

Private placement bonds (environmental private
placement bonds and SDGs private placement bonds, etc.)¥28.9 billion

Investment costs are expected to increase
when shifting from existing fuel vessels toenvironmentally friendly vessels.

○ii. Changes in fuelcomposition

Changes in fuel costs are expected to occur due
to changes in the fuel composition of ships.

ーiii. Occurrence of carbon
costs

Carbon costs are expected to be incurred fromthe operation of existing fuel vessels.

ー¥1,400.0 billion

Sustainable finance cumulative amount
Of which, the environmental area

In Scope

i. Shift to environmentallyfriendly vessels

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Renewable energy businesses related

Transaction amount in the firsthalf of fiscal 2023: ¥97.1 billion(including ¥68.2 billion in theenvironmental area)¥92.6 billion¥60.9 billion
Fiscal 2021

¥218.9 billion¥125.1 billion
Fiscal 2022

¥700.0 billion¥316.0 billion¥193.3 billion

First half of Fiscal 2023

Fiscal 2030

‐ 34 ‐

Efforts for Sustainability _ Efforts for Local Economy
Revitalization of Local Economy by Crowdfunding

Revitalization of the Region by Business Foundation Support
Number of Business Foundation Support
Fiscal 2021

Fiscal 2022

[Number (cumulative)]
First half of
Fiscal 2023

Business foundation planning support

352

385

196

Of which, start-up loans(with/without Credit Guarantee Association)

217

228

70

Of which, referrals to government-affiliatedfinancial institutions and start-up support
organizations

19

36

1

Of which, venture companies registered for
grants or investments

18

16

8

*Businesses within 3 years of establishment are counted

 Continuing from last year, the Bank supports the operationalization of customers during the startup period, centering on “start-up loans”

Business Plan Competition

 “The 6th Shikoku Alliance Business Plan Competition” was held in November 2023
 There were 56 applications from the four prefectures of Shikoku, and eight businesses madepresentations at the final screening meeting The Grand Prize was awarded to wead Co., Ltd., which presented the “Development and sales of
unprecedented agricultural/livestock materials utilizing waste to both improve productivity and achievesustainability”

Total (Millions of Yen)

[Number by category]

Total number of cases

95

86

New products
and services

Businessfoundation
Total

65
50

Regional
revitalization

Fiscal 2020

Fiscal 2021

Fiscal 2022

First half of fiscal 2023

 The Bank subsidizes part of the fees paid by customers to crowdfunding companies to support
projects on starting business and regional revitalization in Ehime Prefecture
Collaboration with JGSDF Camp Matsuyama for regional revitalization
Signed a “Collaboration Agreement for the Implementation of Projects that Contribute to the Measures
Concerning Population Decline and Regional Revitalization in Ehime Prefecture.” Consider/implement various projects related to population decline and regional revitalization, and work toward sustainable
development of the region as partners in regional revitalization (fist Japanese case where JGSDF and a private company haveconcluded a partnership agreement on population decline and regional revitalization)

Details of collaboration
 Mutual exchange of human resources Implementation/dissemination of the activities/projects
conducted by the parties
 Development of human resources who contribute toregional revitalization through the dispatchment of staff
to mutual seminars, etc.

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐ 35 ‐

Efforts for Sustainability _ Human Capital Management (Arranging Internal Environment)
Human Capital Management (Basic Policies)

The Group positions human resources as one of sources of competitive advantages, developing human resources and arranging the internal environment toCareer, Social, Financial, Physical, Community
realize five elements of Well-Being* for all employees*

Iyogin Group Well-Being =Arranging Internal Environment

Work Style Reforms

DE&I Arranging an environment where autonomous and diverse ways of working are possible
Overtime
working hours

Initiative for work style reforms
Smart Working Challenge
Complete flexible
working hour system

Work from home

Side job system

Business casual
attirePaid leave
utilization rate

Announced our Commitment to DE&I that clarifies the concept of "equity" from previous D&I (May 2023)
 Professional Course

19.2 hrs/mo.

Started the operation of the “Professional Course,” which was newly established in the revision of thepersonnel system in October 2022.

6.6 hrs/mo.

2015

2018

4.4 hrs/mo. 4.2 hrs/mo.
2021

Conducting an engagement survey every month using an engagement detection tool (wevox)[Engagement score]
PDCA cycle for improvement inengagement
Average infinancial sector
Mar. 2021

Mar. 2022

Mar. 2023

 Supporting Employees’ Financial Well-Being Increased base pay for the first time in 28 years since 1995
 Revised the matching contribution-type defined contribution pension plan to a salary
selection system to expand employee options
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Professional Course
Generalist Course2022 Arranging a workplace environment providing “motivation” and “job satisfaction”(increasing engagement)

Enhancement oforganizational abilities andan improvement inbusiness results

 Iyogin Group Commitment to DE&I

Office Course

Programmer

Architect

System engineer

Health nurse

Senior system engineer

Manufacturing consultant

Derivatives manager

Recruitment consultant

Internal auditor

PE fund investment officer

Health Management
 Taking both of a population approach and a high-risk approach
Population Approach

High-risk Approach・Subsidizing costs for health checkups andgranting special leave・Recommendations from a health nurse forreexamination or consulting with a doctor
・Health guidance according to lifestyle risk
・Specific health guidance
・Face to face guidance by an industrial
doctor, etc.

・Holding health seminars and events
・Lending a wearable terminal “Fitbit”
・Working hour interval system, etc.

‐ 36 ‐

Efforts for Sustainability _ Social Contribution Activities
Environmental Protection

Contribution to Local Communities

Iyo Bank Environment
Foundation “Evergreen”(public trust)

Iyo Bank
Evergreen Forest
Established in 2008
Under the “Agreement on Forest Creation Activities”
which was entered into with Ehime Prefecture, Ozu
City and Forest Fund of Ehime, we are making efforts
to foster forests in four locations in Ehime Prefecture.

Established in 2008

Applications are invited once every year
from April to August

We support
organizations andindividuals who are
engaging inenvironmental
preservation activities in
Ehime. To this day, we
granted a total of ¥69
million to 192 recipients.

Iyo Bank Evergreen Forest (Matsuyama City)

Fiscal 2022 “PLAGIRLS from the
Science Club, Ehime University
Senior High School”

Diversity

Established in 2018
Iyogin Challenge & Smile Co., Ltd. has been established
as a special subsidiary company with the purpose ofpromotion of employment of persons with disabilities. It
engages in various initiatives aiming to create aworkplace where they can work actively with local
communities, including development of goods, sales ofgoods at rest stops, event venues, etc. in cooperation
with local companies, and succession of traditional
industries.

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Iyo Bank Regional Cultural
Activity Assistance Program
Established in 1992
Applications are invited twice a year from June to Julyand from December to January

We grant part of funds for
activities of parties whichcarry out “grassroots”
cultural activities in Ehimeand granted a total of¥256 million to 1,325
organizations. In addition,“special applications”
targeting organizations
The 63rd recipient
damaged by the heavy“Nishida Lion Dance Preservation Society”
rain in July 2018 are also
invited.

Iyogin Financial
Education Class

IyoginChallenge & Smile

Started in 2007

SDGs Card Game
Started in 2021

Iyogin Regional Economy
Research Center isconducting “2030 SDGs
Card Game” training for
local companies andorganizations. Anyone caneasily learn “why SDGs areneeded ” and “how SDGs
are relevant to us” while
experiencing in a gameformat.

Iyo Bank Social Welfare Fund
(Public Interest Incorporated
Foundation)
Established in 1976
We support improvement in social welfare andhuman resource development for the next generationin Ehime
Granting scholarships to high
Employment subsidies forschool students in single or no
children living in child welfare
parent families
institutions, etc.
Iyo Bank Social Welfare Fund
(Public Interest Incorporated Foundation)
Donation of social welfare
equipment to social welfare
institutions, etc.

Donation of subsidies forbuying books to high schools,
etc.

Economics Koshien

Iyogin is
supportingchildrenHosted the Ehime Tournament of theHigh School Students Financial andEconomic Quiz Championship

Seminar for kids

Seminars for learning aboutbank mechanisms and healthyfinancial literacy

Iyogin Junior
Mirai Juku

Lesson program in line withschool curriculum guidelines
and financial literacy map‐ 37 ‐C o nte nt s

I. Summary of Earnings for the First Half of Fiscal 2023
II. Process for Enhancement of Corporate Value
III. Group Medium-Term Management Plan
III-1. Main Strategies and Progress of Medium-Term Management Plan
III-2. Efforts for Sustainability
III-3. Profit / Loss Forecasts and Capital Policy

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Profit / Loss Forecasts for Fiscal 2023


Mainly due to an increase in interest and dividend income, consolidated core business gross profit is projected to be ¥98.5 billion, an increase of ¥9.0 billion year on year
Due to increases in consolidated core gross profit and gain related to securities, profit attributable to owners of parent is expected to increase by ¥4.2 billion year-on-year to ¥32.0
billion, remaining at a high level(Units: Billions of yen)

[Holding Company Consolidated]

Fiscal 2022 results
Intermediate
results

Intermediate
results

Fiscal 2023 forecast
YoY

Factors Contributing to Increase / Decreasein Consolidated Core Business Gross Profit (Fiscal 2023 - Fiscal 2022)
YoY

Consolidated core business gross profit

44.9

89.5

50.7

＋5.8

98.5

＋9.0

Of which, interest and dividend income

37.7

75.3

41.4

＋3.7

83.5

＋8.2

Of which, non-interest and dividend
Income

7.2

14.2

9.3

＋2.1

15.0

＋0.8

Expenses (-)

26.1

52.6

27.2

＋1.1

55.5

＋2.9

Consolidated core business net income

18.8

36.8

23.5

＋4.7

43.0

＋6.2

Credit costs (-)

(0.7)

(2.5)

1.5

＋2.2

5.5

＋8.0

Gain (loss) related to securities

7.5

0.0

13.5

＋6.0

6.5

＋6.5

Ordinary income

28.9

42.4

37.4

＋8.5

47.5

＋5.1

Profit attributable to owners of parent

19.8

27.8

24.7

＋4.9

32.0

＋4.2

[Reference: Bank Nonconsolidated]

Fiscal 2022 results
Intermediate
results

Intermediate
results

Fiscal 2023 forecast
YoY

YoY

Core business gross profit

42.2

84.1

48.0

＋5.8

93.0

＋8.9

Expenses (-)

24.8

50.3

26.0

＋1.2

53.0

＋2.7

Core business net income

17.3

33.7

22.0

＋4.7

40.0

＋6.3

Ordinary income

27.3

39.2

36.2

＋8.9

45.5

＋6.3

Net income

19.1

26.3

24.0

＋4.9

30.5

＋4.2

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

(Note) Differences in yield of domestic currency utilize yield
differences with domestic deposits, etc.
Differences in yield of foreign currency utilize yield
differences with foreign currency funding costs(Units: Billions of Yen)

Gain on loan
management(¥55.5 billion)+3.7

Interest anddividend income(¥83.5 billion)
Core businessgross profit(¥98.5 billion)+8.2

Gain on securities
management(¥25.0 billion)+2.9

Volume factors +3.7
(Average loan balance up ¥316.4
billion)Yield difference factors +0.0
(Yield difference down 0.00%)
Volume factors +4.5
(Average loan balance up¥235.9 billion)
Yield difference factors (5.8)
Gain on fund cancellation
factors +4.2

+9.0

Other
(¥2.9 billion)
Fees andcommissions(¥11.0 billion)

+1.3

+1.6

… Increases in solution-related fees andrevenue from sales of investment trusts, etc.

Other(¥4.0 billion)(0.5)… Decrease in gain (loss) on foreign exchange transactions, etc.

‐ 39 ‐

Capital Policy I
Status of Required Capital Management (As of September 30, 2023)(Hundreds ofMillions of Yen)

Allocate additional capital requirements using stress tests
 The Group has built a distinctive investment portfolio in ship finance andsecurities management.

CET 1 ratio 15% level
CET 1 ratio 14.78%(September 30, 2023)
Valuationdifference on
securities¥203.4 billion
Additional
required capital

Calculate the capitalrequired to realize
risk appetite

 On the other hand, the credit concentration risks and market risks contained inthese portfolios has not been adequately assessed under the Basel Capital Accord.

 The amount of capital required to maintain financial soundness of the Group evenin the event of a market deterioration that has occurred in the past is calculated
based on the results of stress tests.

CET 1 ratio 8% level

CET1 ratio target set at 15.0%
Common stock , etc.
Tier 1(excluding valuationdifference )¥515.5 billion

Regulatory
required capital¥389.2 billion

Reference: ROE by business division after considering additional capital requirements

Fiscal 2022

Risk capital(¥718.9 billion)

Required capital(Regulatory capital basis)

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Corporate
related

Personal related

Ship relatedMarketinvestment

6.02%

4.68%

6.33%

3.92%

 Improve profitability through steady implementation of business strategies, andimprove capital efficiency by enhancing risk management as well, with the aim of
improving ROE by business division.
‐ 40 ‐

Capital Policy II
Cross-Shareholdings

Dividend and Shareholder Return■ Basic policy and response status of dividend and shareholder return■ Basic policy and response status of cross-shareholdings
Basic→ The Board of Directors verifies the rationality of holding at
ReducePolicyleast once a year
Policy on holding is set through the evaluation matrix of “investment side” and “policyside” for all stocks held. Shares which are earmarked for divestment are being sold off instages.
(Hundreds ofMillions of Yen)

March
2016

March
2017

March
2018

March
2020

March
2021

March
2022

March
2023

In the fiscal year ending March 2024, the company will increase the annual dividend to ¥20 per share(+¥3 compared to the previous fiscal year, with an annual dividend of approximately ¥6.2 billion) andpurchase treasury stock of up to ¥5 billion.
[Past amounts of dividends and shareholder returns]
Stock

Tier 1 ratio* (right axis)

March
2019

Maintenance of long-term and stable dividends(Hundreds ofMillions of Yen)

［Changes in the book value of cross-shareholdings (listed)］Book value of cross-shareholdings(listed)

Basic
PolicyMarch2024［配当・株主還元額実績］

Purchase oftreasury stock

Total payout ratio (right axis)

March March March March March March March March March March March March March March2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

* Tier 1 excludes components of comprehensive income
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐ 41 ‐

■ Future business results contained in this document are based on information available as ofannouncement and assumptions regarding uncertain factors that may affect future business results.
■ Future business results may differ due to changes in the management environment, etc.

<For inquiries regarding this document> Ueda, Corporate Planning Division, Iyogin Holdings TEL:089-907-1034/FAX:089-946-9104

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐ 42 ‐

Investor
Relations

Iyogin Holdings First Half of Fiscal 2023
Earnings Briefing(April 1, 2023 – September 30, 2023)

Reference Materials
Iyogin Holdings
December 8, 2023
Copyright
Iyogin Holdings,Inc.
Holdings,Inc. All
Copyright ©
© 20232023 Iyogin
All Rights
Rights Reserved.
Reserved.

Index of Reference Materials
Overview of the Iyogin Holdings

Pg

Conditions in Loans and Deposits

Pg◎Profile

2◎Breakdown of Balance of Loans and Deposits at End of Period

12◎List of Group Companies

3◎Balance and Composition of Loans by Industry

13◎Location Network

4◎Table of Changes in Borrower Classification

14

Environment Surrounding the Iyogin Holdings

Pg

Status of Market Investment and Risk Management

Pg◎Main Industries in Ehime Prefecture

5◎Management by Risk Category: Securities Investment

15◎Manufacturing Industry in Ehime Prefecture

6◎Balance of Investments by Region and Sector: Financial Market Business16◎Industrial Structure of the Setouchi Region

7◎Economic Indicators of the Setouchi Region I

8◎Economic Indicators of the Setouchi Region II

9

Status of Ocean Transport-Related Market

Pg◎Shipbuilding Yards in Ehime Prefecture

10◎Outlook of Dry Bulk Market Conditions

11

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐1‐

Profile
Trade nameYear ofestablishment /foundation
CapitalExternal credit
ratings

Headquarters /Head Office
Consolidated
employees

Branch network

Iyogin Holdings, Inc.

Iyo Bank, Ltd.

Established on October 3, 2022

Founded on March 15, 1878 (The 29th National Bank)¥20,000 million¥20,900 million

AA: Japan Credit Rating Agency (JCR)

AA: Japan Credit Rating Agency (JCR)

A: Rating and Investment (R&I)

A+: Rating and Investment (R&I)‒

A-: Standard & Poor’s (S&P)
1 Minami-Horibata-cho, Matsuyama-shi, Ehime, Japan
3,060 employees (excluding temporary staff)

Iyo Bank: 152 domestic (including 25 branches within branches, 10 sub-branches), 1 overseas (Singapore),
2 overseas representative offices (Shanghai, Hong Kong)
Iyogin Leasing: 11 domestic
Shikoku Alliance Securities: 5 domestic〈As of December 8, 2023〉

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐2‐

List of Group Companies
14 consolidated
subsidiaries

Iyogin Holdings, Inc. (holding company)

Banking business

Deposit business, lending business, securities
investment business, exchange business

Iyo Bank, Ltd.
Iyogin Business Service Company
LimitedCash organization and inspection business,maintenance and management business of automatedcash facilities, etc.

Iyogin Challenge&Smile Co., Ltd.

Manufacturing business for office supplies, etc.

Iyogin Credit Guaranty Company
LimitedCredit guarantee business for housing loans andconsumer loans, etc.

Iyogin Capital Company Limited

Investment business for stocks and corporate bonds,
etc., management of investment funds, etc.

7 consolidated subsidiaries
Iyogin Regional Economy
Research Center, Inc.

Investigation and research business regarding industry,
economics, finance, etc.

Iyogin DC Card Co., Ltd.

Credit card business, guarantee business, etc.

Leasing business1 consolidated
subsidiary

Iyogin Leasing Company Limited

Other

3 consolidated
subsidiaries

Iyogin Computer Service
Company Limited(As of December 8, 2023)

Lease business, etc.
Consigned information processing business, softwaredevelopment business, etc.

Shikoku Alliance Securities Co.,
Ltd.

Securities businessIyogin Digital Solutions Co., Ltd.

Consulting services for operational improvement utilizing
digital technology, etc.

* Apart from the above, the Group has 4 non-consolidated non-equity method subsidiaries
and 3 non-equity method affiliates.
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐3‐

Location Network■ Created the No. 1 regional bank group in terms of broad regional coverage, in 13 prefectures centered on the Setouchi region■ Established a strong operating base by expanding outside of Ehime Prefecture from long ago
Chugoku region

Timing of opening key branches outside of Ehime

Iyo Bank: 2 branches

Iyogin Leasing: 2 branches

Okayama

Hiroshima
Yamaguchi

Fukuoka

Iyogin Leasing: 1 branch

Hyogo

Iyo Bank: 1 branch, 2 offices

KagawaWithin Ehime

Kinki region

Iyo Bank: 120 branches
Shikoku Alliance Securities: 5 branches

Iyo Bank: 8 branches

Overseas

Osaka

Iyogin Leasing: 6 branches

Kyushu region

Tokushima
Kochi

Iyo Bank: 5 branches
Iyogin Leasing: 1 branch

Oita
Number of branches of Iyo Bank

Shikoku region, excluding Ehime

Iyo Bank: 7 branches
Iyogin Leasing: 1 branch

11 prefecturesin the Setonaikai region

152 domestic, 1 overseas, 2 overseas representative offices(of which, Iyogin SMART: 3 branches)(of which, Iyogin SMARTplus: 9 branches)(of which, branches within branches: 25 branches)
Number of branches of
Iyogin Leasing
11 domestic

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Iyo Bank: 1 branchTokyo region

Iyo Bank: 9 branches

1909: Usuki (Oita); 1919: Nigata (currently Kure, Hiroshima);
1947: Takamatsu (Kagawa), Kochi, Oita; 1950: Hiroshima;
1952: Osaka; 1954: Tokyo; 1958: Tokushima;
1963: Kitakyushu (Fukuoka); 1964: Okayama;
1965: Nagoya (Aichi); 1966: Kobe (Hyogo);
1971: Fukuoka; 1979: Tokuyama (Yamaguchi)

Tokai region

Number of branches of
Shikoku Alliance Securities
5 domestic‐4‐

Main Industries in Ehime Prefecture■ Industries with top national share concentrated in each region■ Manufactured product shipments from Ehime Prefecture totaled¥4.8 trillion (46.6% of Shikoku) in 2021

Imabari Region
32.7%(1,199 ships)
No. 1 in Japan

No. 1 in Japan

Number of ocean-going vessels owned by domestic shipowners (as of September 2020) (Note 1)
3,663 total vessels in Japan

Towels (2021)¥52.0 billion shipped in Japan…Total national share of Ehime Prefecture

Matsuyama Region

59.6%(¥31.0 billion)(Note 2)The Matsuyama region has companies with large
shares in products such as “small once-throughsteam boilers,” “farm machinery,” and “dried bonito
shavings.”(Note 2)

Uwajima Region
15.4%(¥69.5 billion)

No. 1 in Japan(Note 2)

Sea culture industry (2021)¥451.5 billion total national
production

Manufactured product shipments (2021)¥2,089.6 billion

Approx. 43.9% of shipments ofmanufactured products in Ehime

As a corporate town under the Sumitomo
Group, nonferrous metal, chemicals, steel,machinery and equipment are concentrated
particularly in the Niihama region.

•(Note 1) Iyogin Regional Economy Research Center, Inc. (IRC) estimates; the ranking in Japan excludes operators.
•(Note 2) Ranking of Ehime Prefecture
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Uma (Shikokuchuo) Region

Niihama Region

7.6%(¥547.5. billion)

No. 2 in Japan(Note 2)

Pulp and paper industry (2021)¥7,214.3 billion shipped in Japan

Source: Prepared based on the Ministry of Economy, Trade and Industry’s “Economic Conditions Survey 2022” andthe Ministry of Agriculture, Forestry and Fisheries’ “total fishery output for 2021 (revised figures).”‐5‐Manufacturing Industry in Ehime Prefecture■Ehime Prefecture has manufacturing industries distinctive to each region
OthersFiber Industry

Production
machinery

Composition of manufactured goods
shipment by city (top five cities)

Electric
machinery
Food products
FibersMatsuyama¥469.1 billion

Transportation
machinery

Chemicals

Food products

OthersImabari¥1,045.2 billion

Manufacturing of
petroleum products
and coal products

General-purpose
machinery

FibersFood
Manufacturing
Others

Production machinery

General-purpose
machinery

OthersPlastic

Plastics

Transportation
machinery
Production machinery
Steel

Saijo
¥1,034.3 billion

Nonferrous
metal

Plastic

Niihama¥1,055.3 billion

Nonferrous
metal

Chemicals

Source: Prepared by Iyogin Regional Economy Research Center, Inc. (IRC) based on the Ministry of Economy, Trade and Industry’s “Economic Conditions Survey 2022”.
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

OthersFood products

Shikokuchuo¥642.8 billion
Pulp, paper, andpaper processing‐6‐Industrial Structure of the Setouchi Region■ The Setonaikai coastal region has established various industrial structures
Automotive, oil refining, steel
Shipbuilding, ocean transport,
oil, towels and garments
Automotive, shipbuilding, electronics

Okayama
Hiroshima

Electronics, farm machinery,
chemicals, tourism

KagawaImabariNiihamaMatsuyama Saijo

Citrus, food processing

Shikokuchuo
Paper manufacturing andprocessing

Ozu
Yawatahama
Oita

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

Chemicals, electronics,
nonferrous metal, generalmachinery

UwajimaSteel, automotive, electronics, tourism

Shipbuilding, textiles

Culture fishery‐7‐Economic Indicators of the Setouchi Region I
Tota l popul a ti on(Popul a ti on es ti ma te)
October 2022

Number of offi ces
Tota l a rea
Number of empl oyees(Geos pa ti a l Informa ti on (Pri va te s ector, excl udi ng (Pri va te s ector, excl udi ng
Authori ty of Ja pa n)publ i c s ector)
publ i c s ector)
Jul y 2023

2021

2

(Pers ons )2021(Offi ces )(km )(Pers ons )Prefecture tota lproducti on(Nomi na l )Prefectura l gros s productgrowth ra te(Rea l )Prefectura l Income
per ca pi ta

Fi s ca l 2020

Fi s ca l 2020

Fi s ca l 2020

(Bi l l i ons of yen)(％)(Thous a nds of yen)

Ehi me1,306,486

5,676

59,021

563,2824,827.5

(7.9)

2,471

Ka ga wa
Tokus hi ma

934,060

1,877

44,528435,625

3,734.4

(8.2)

2,766

703,852

4,147

33,794

304,672

3,185.2

(1.9)

3,013

Kochi

675,705

7,102

32,839275,520

2,354.3

(5.4)

2,491

Oi ta

1,106,831

6,341

49,937473,690

4,458.0

(4.0)

2,604

Fukuoka
Ya ma guchi

5,116,046
1,313,403

4,988
6,113

205,965
55,7592,294,657
571,202

18,886.9
6,148.1

(6.0)
(4.0)

2,630
2,960

Hi ros hi ma

2,759,500

8,479

120,069

1,293,541

11,555.4

(4.4)

2,969

Oka ya ma

1,862,317

7,115

77,428835,270

7,606.4

(5.4)

2,665

Total of the above nine prefectures (A)15,778,200

51,838679,340

7,047,459

62,756.2(A)/(C)
Hyogo

12.6%
5,402,493

13.7%
8,401

13.4%
199,966

12.3%
2,194,727

11.2%
21,735.9

(3.5)

2,887

Tota l of ten prefectures (B)(B)/(C)

21,180,693

60,239879,306

9,242,186

84,492.1

17.0%

15.9%

17.3%

16.1%

15.1%

Na ti ona l Tota l (C)124,946,789

377,975

5,078,617

57,457,856

558,778.3

(4.6)

3,123

Total of ten
prefectures
17.0%

Total population(Population
estimate)(October 2022)

Total of nine prefectures(excluding Hyogo)
12.6%

Total population(Population
estimate)(October 2022)

Total of ten
prefectures
15.1%

Gross prefectural
product(Nominal)(Fiscal 2020)

Total of nine prefectures(excluding Hyogo)
11.2%

Gross prefectural
product(Nominal)(Fiscal 2020)

Source: Prepared based on the Statistics Bureau of Japan’s “Population Estimates,” the Geospatial Information Authority of Japan’s “Statistical reports on the land area by prefectures and municipalities in Japan,” the Ministry of Internal
Affairs and Communications’ and Ministry of Economy, Trade and Industry’s “Economic Census”, the Ministry of Economy, Trade and Industry’s “Economic Conditions Survey 2022,” and the Cabinet Office’s “Prefectural Accounts.”
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐8‐

Economic Indicators of the Setouchi Region II
Ma nufa ctured products hi pments

Annua l whol es a l e s a l es
a mount

Annua l reta i l s a l es
a mount

Indus tri a l producti on
i ndex (a nnua l a vera ge)

Number of new hous i ng Jobs -to-a ppl i ca nts ra ti o(a nnua l a vera ge)s ta rts

Overa l l unempl oyment
ra te (a nnua l a vera ge)

2022

2021

2021

2022

2022

2022

2022

(Mi l l i ons of yen)

(Mi l l i ons of yen)

(Mi l l i ons of yen)

2015=100(Homes )(Ti mes )(%)

Ehi meKa ga wa
Tokus hi ma

4,758,162
2,801,392

2,466,898
2,202,125

1,472,320
1,140,868

95.7
92.2

6,843
5,198

1.42
1.51

1.9
2.2

Kochi

2,057,816
601,498

803,495
719,995

706,601
703,764

102.4
91.1

2,718
2,881

1.27
1.19

2.2
1.9

Oi ta
Fukuoka
Ya ma guchi

4,713,437
9,444,973
6,650,098

1,245,665
16,420,315
1,456,487

1,186,677
5,678,040
1,648,500

91.1 (for 2021)
unpubl i s hed
103.7

7,009
41,458
6,769

1.35
1.17
1.52

1.8
2.9
1.8

Hi ros hi ma
Oka ya ma

8,354,901
3,363,511
37,033,392

3,132,853
2,028,495
17,698,118

97.5
93.1

17,973
13,199104,048

1.54
1.52

2.2
2.1

Total of the above nine prefectures (A)9,943,935
8,365,362
49,336,673(A)/(C)
Hyogo
Tota l of ten prefectures (B)14.9%
16,502,307
65,838,980

9.2%
9,320,032
46,353,424

12.8%
5,367,928
23,066,046

1.01

2.6

19.9%

11.5%

16.7%

330,220,006

401,633,535

138,180,412

1.28

2.6

(B)/(C)
Na ti ona l Tota l (C)Total of ten
prefectures
19.9%

Manufactured
product
shipments(2022)

Total of nine prefectures(excluding Hyogo)
14.9%

Manufactured
product
shipments(2022)

12.1%
31,064135,112

95.0

15.7%
105.3

859,529

Total of ten
prefectures
15.7%

Number of new
housing starts(2022)

Total of nine prefectures(excluding Hyogo)
12.1%

Number of new
housing starts(2022)

Source: Prepared based on the Ministry of Economy, Trade and Industry’s “Economic Conditions Survey 2022”, the Ministry of Internal Affairs and Communications’ and Ministry of Economy, Trade and Industry’s “Economic Census,” each prefecture’s
materials, the Ministry of Land, Infrastructure, Transport and Tourism’s “Survey of Building Construction Work Started,” the Ministry of Health, Labour and Welfare’s “Employment referrals for general workers” and the Statistics Bureau of Japan’s “Labour
Force Survey”
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐9‐

Shipbuilding Yards in Ehime Prefecture
Fujiwara Shipbuilding Co., Ltd.
I-S Shipyard Co., Ltd.
Yamanaka Shipbuilding Co., Ltd.

Hakata Shipbuilding Co., Ltd.
Murakami Hide Shipbuilding Co., Ltd.
Shimanami Shipyard Co., Ltd.

Namikata Shipbuilding Co., Ltd.
Okashima Zosen Co., Ltd.

Iwagi Zosen Co., Ltd.

Kadota Dock Yard Co., Ltd.
Kurinoura Dockyard Co., Ltd.
Honai Jukogyo Co., Ltd.

Akamatsu Shipbuilding Co., Ltd.
Matsuda Shipbuilding Co., Ltd.
Miyoshi Shipbuilding Co., Ltd.

Onishi Shipyard,
Shin Kurushima Dockyard Co., Ltd.

Asakawa Shipbuilding Co., Ltd.
Head Office and Shipyard, Imabari Shipbuilding Co., Ltd.
Shin Kurushima Hashihama Dockyard Co., Ltd.
Higaki Shipbuilding Co., Ltd.
Yano Shipbuilding Co., Ltd.

Saijo Shipyard, Imabari
Shipbuilding Co., Ltd.

15 Groups, 22 Offices
Source: Prepared by the Bank based on “Documents for Shipbuilding Under Jurisdiction” published by the Shikoku Land Transport Office*Shipbuilding facilities currently in operation either constructing or repairing steel vessels of at least 500 gross tons or 50 m or longer

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐ 10 ‐

Outlook of Dry Bulk Market Conditions
Dry Bulk Transport Demand and Supply

Future Market Outlook■ Unit transport volume and shipping tonnage■ Baltic Dry Index (BDI) trends
Growth rate of unit transport volume

Maximum value
11,793（May 2008）

Growth rate of shipping tonnage

1,716(September 30, 2023)
Minimum value 290（February 2016）

Source: “Clarkson Research Shipping Review & Outlook” (October 2023)”(Plan)(Plan)(Plan)■ Dry bulk transport demand (transport volume) and supply (shipping
tonnage)●Although unit transport volume* of dry bulk vessels for 2022 was low due to the zero-COVID policy
in China, which greatly affected ocean logistics, it is expected to recover significantly in 2023, with ayear-on-year increase of 4.6% as a result of such factors as economic recovery from the COVID-19
pandemic, longer trade route distances from alternative regions brought about by the ongoinginvasion of Ukraine, and increased grain exports from South America.
●As for shipping tonnage, supply was restrained due to a shortage of building berths caused byincreased orders for LNG carriers and containerships worldwide, and there was no significant
slackening of supply-demand balance.

■ Future market outlook●Although the current uncertainty in the Chinese economy is weighing on dry bulk cargo movements,
due to firm South American grain shipments and projected growth in the global economy, no negative
factors are seen in the medium to long term.
●As for supply of shipping tonnage of dry bulk, the expected growth of shipping tonnage of dry bulk isrelatively low, with no expectation of a phase of oversupply. In addition, slower steaming due to the
Carbon Intensifying Indicator (CII) started in January 2023 and the congestion of vessels due tochronically low water levels in the Panama Canal are tightening factors on shipping tonnage which are
expected to lead to tighter supply and demand.

* Unit transport volume: Also called ton-mile. Indicates the tonnage and mileage of cargo transported and isan indicator to measure actual demand for ships.
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐ 11 ‐

Breakdown of Balance of Loans and Deposits at End of Period
1. Brea kdown of ba l a nce of l oa ns a t end of peri od(Units: Billions of yen)

September 2019
Total Loans
General loans

Ma rch 2020

September 2020

Ma rch 2021

September 2021

Ma rch 2022

September 2022

Ma rch 2023

September 2023

Vs. September 2022

4,617.5

4,756.6

4,874.5

4,999.3

4,959.1

5,068.8

5,257.4

5,326.0

5,541.5

284.1

4,387.7

4,522.2

4,648.1

4,783.6

4,752.4

4,870.3

5,062.0

5,137.8

5,349.3

287.3

Corporate loans (incl. overseas, etc.)

3,291.1

3,397.9

3,507.7

3,624.6

3,586.1

3,696.2

3,887.7

3,964.9

4,181.5

293.8

Corporate loans (domestic branches)

3,158.3

3,248.8

3,347.1

3,434.9

3,387.6

3,479.8

3,653.1

3,738.8

3,925.3

272.2

Individual financing

1,096.5

1,124.3

1,140.3

1,158.9

1,166.3

1,174.0

1,174.3

1,172.9

1,167.7(6.6)

Housing loans

805.3

831.8

852.6

870.7

879.6

885.5

886.6

884.0

877.8

(8.8)

Apartment and building loans

203.1

205.2

205.2

205.7

206.2

208.8

209.6

210.2

212.1

2.5

Card Loans, etc.

27.9

26.9

24.5

23.6

22.9

21.9

21.6

21.1

21.0

(0.6)

229.7

234.3

226.4

215.6

206.6

198.5

195.3

188.1

192.1

(3.2)

Municipal loans, etc.

(Note) The figures shown for apartment and building loans are the total of the "institutional finance" portion.

2. Brea kdown of ba l a nce of a s s ets i n cus tody s uch a s depos i ts , etc. a t end of peri od
September 2019

Ma rch 2020

September 2020

(Units: Billions of yen)

Ma rch 2021

September 2021

Ma rch 2022

September 2022

Ma rch 2023

September 2023

Vs. September 2022

Total Deposits, etc. + assets in custody A

6,174.5

6,094.1

6,532.5

6,870.9

6,956.9

7,015.2

7,027.4

7,196.0

7,225.9

198.5

Total Deposits, etc.

5,817.3

5,754.3

6,184.6

6,522.6

6,603.0

6,654.1

6,669.7

6,823.2

6,837.0

167.3
145.9

Total deposits

5,288.5

5,265.6

5,652.6

5,983.1

5,956.2

6,041.8

6,099.8

6,189.0

6,245.7

Individual

3,450.2

3,512.5

3,652.2

3,740.7

3,794.03,850.8

3,889.9

3,916.3

3,942.9

53.0

General companies

1,553.7

1,564.4

1,733.5

1,853.4

1,857.9

1,915.1

1,949.8

1,950.3

2,025.7

75.9

Public

113.2

119.8

112.7

162.8

114.0

141.7

118.9

147.5

111.6

(7.3)

Financial

31.9

40.8

32.7

43.4

30.6

45.2

30.4

67.4

30.0

(0.4)

Overseas / offshore

139.4

28.0

121.3

182.6

159.5

88.8

110.6

107.4

135.2

24.6

528.8

488.7

531.9

539.4

646.8

612.2

569.9

634.1

591.3

21.4

NCD
General companies

390.0

367.0

384.9

427.4

476.2

445.0

385.6

463.0

382.8

(2.8)

Public

138.7

121.7

147.0

112.0

170.6

167.0

184.1

171.0

208.3

24.2

1,943.8

1,931.4

2,118.5

2,280.8

2,334.1

2,360.2

2,335.5

2,413.3

2,408.5

73.0

Public funds (incl. NCD)

General company funds (incl. NCD)

252.0

241.5

259.8

274.9

284.6

308.8

303.0

318.5

320.0

17.0

Foreign currency deposits (balance)

101.6

89.3

96.3

99.0

116.0

133.1

138.6

136.0

143.4

4.8

Individual deposits + individual assets in custody
Individual deposits
Individual assets in custody

3,795.6

3,841.4

3,988.5

4,078.3

4,137.4

4,201.0

4,236.7

4,278.1

4,319.983.2

3,450.2

3,512.5

3,652.2

3,740.7

3,794.03,850.8

3,889.9

3,916.3

3,942.9

53.0

345.4

328.8

336.3

337.6

343.4

350.1

346.8

361.7

376.9

30.1
31.1

<Assets in custody (Term-end basis)>
Assets in custody at the Bank (excl. deposits, etc.) B

357.1

339.7

347.8

348.3

353.9

361.1

357.7

372.7

388.8

JGBs

20.3

19.8

19.9

19.2

20.0

21.3

23.9

28.2

33.7

9.8

Investment trusts

66.7

53.8

58.7

61.6

64.0

67.8

64.4

67.0

70.5

6.1

Single premium polocies

216.4

214.2

211.3

208.7

207.2

205.4

203.6

208.3

212.1

8.5

Financial product intermidiary

53.6

51.7

57.7

58.6

62.5

66.4

65.6

69.1

72.4

6.8

Shikoku Alliance Securities balance C

207.8

202.4

226.6

245.2

246.3

246.0

254.2

275.0

300.7

46.5

Balance of Group's assets in custody B+C=D

565.0

542.2

574.5

593.5

600.2

607.1

611.9

647.8

689.6

77.7

8.9%

8.6%

8.5%

8.3%

8.3%

8.4%

8.4%

8.7%

9.2%

Assets in custody composition (D/A+C)(Note) The figures shown for foreign currency deposits (balance) are the total excluding overseas / offshore.

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

－‐ 12 ‐

Balance and Composition of Loans by Industry■ There are no major changes in the composition of loans by industry, and the loans are well-balanced(Uni ts : Bi l l i ons of Yen, %)September 2018

September 2019

Composition

September 2020

Composition

September 2021

Composition

September 2023

September 2022

Composition

Composition

Vs. September 2022

Composition

Balance

Rate of balance
increase/decreas

Manufacturing

629.8

14.5%

646.9

14.4%

671.7

14.2%

652.5

13.7%

653.9

13.0%

693.6

13.1%

39.7

6.1%

Agricultural

2.8

0.1%

2.8

0.1%

2.9

0.1%

2.8

0.1%

2.8

0.1%

4.0

0.1%

1.2

42.9%

Forestry

0.2

0.0%

0.3

0.0%

0.4

0.0%

0.4

0.0%

0.4

0.0%

0.5

0.0%

0.1

25.0%

Fishing

11.1

0.3%

11.2

0.2%

9.8

0.2%

8.1

0.2%

6.8

0.1%

7.2

0.1%

0.4

5.9%

Mining

8.5

0.2%

8.1

0.2%

6.8

0.1%

6.4

0.1%

4.2

0.1%

3.0

0.1%

(1.2)

(28.6%)

Construction

111.2

2.6%

108.9

2.4%

126.4

2.7%

127.7

2.7%

138.7

2.8%

151.3

2.9%

12.6

9.1%

Electricity, gas, heat provision, water

122.5

2.8%

141.3

3.2%

167.4

3.6%

197.4

4.1%

207.8

4.1%

233.8

4.4%

26.0

12.5%

Information communications

21.7

0.5%

20.0

0.4%

17.8

0.4%

18.2

0.4%

17.9

0.4%

12.7

0.2%

(5.2)

(29.1%)

Transportation

703.3

16.2%

728.8

16.3%

801.6

17.0%

847.5

17.8%

1,030.6

20.5%

1,168.8

22.1%

138.2

13.4%

566.5

13.0%

593.6

13.2%

666.0

14.1%

716.6

15.1%

904.3

18.0%

1,032.7

19.5%

128.4

14.2%

Wholesale and retail

500.3

11.5%

499.5

11.1%

509.9

10.8%

510.1

10.7%

530.8

10.6%

569.9

10.8%

39.1

7.4%

Finance and insurance

208.9

4.8%

190.1

4.2%

181.3

3.8%

170.0

3.6%

201.8

4.0%

210.2

4.0%

8.4

4.2%

Real estate

259.0

6.0%

284.1

6.3%

312.2

6.6%

311.7

6.5%

313.6

6.2%

327.1

6.2%

13.5

4.3%

Various services

425.5

9.8%

459.2

10.2%

483.4

10.3%

483.4

10.2%

479.5

9.5%

480.5

9.1%

1.0

0.2%

191.5

4.4%

194.2

4.3%

205.0

4.3%

207.6

4.4%

204.4

4.1%

202.3

3.8%

(2.1)

(1.0%)

233.9

5.4%

224.4

5.0%

222.1

4.7%

203.6

4.3%

194.6

3.9%

190.7

3.6%

(3.9)

(2.0%)

1,106.5

25.5%

1,158.1

25.8%

1,199.4

25.4%

1,220.2

25.6%

1,238.7

24.7%

1,231.4

23.3%

(7.3)

(0.6%)

4,345.9

100.0%

4,484.6

100.0%

4,714.0

100.0%

4,760.5

100.0%

5,022.7

100.0%

5,285.2

100.0%

262.5

5.2%

Of whi ch, ocea n tra ns port

Of whi ch, medi ca l -rel a ted

Regional public entities
Other
Total

(For domes ti c bra nches , excl udes s peci a l i nterna ti ona l tra ns a cti ons a ccount)* “Goods rental” is included in “real estate” from the six months ended September 30, 2009.
“Real estate” for the six months ended September 30, 2023, excluding “goods rental,” was ¥305.8 billion, which is an increase of ¥9.7 billion (+3.3%) compared with the six months ended September
30, 2022. In addition, “other” includes “home renting by individuals” (¥219.7 billion for the six months ended September 30, 2023).
* As “ocean transport” displays balances applicable to the “ocean transport industry” according to Japan Standard Industrial Classification, this figure does not match “Loan balance for the maritime
industry” on page 23 of the Earnings Briefing.
Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐ 13 ‐

Table of Changes in Borrower Classification
 Activities for supporting enhancement of corporate value are conducted through business feasibility assessments of customers
 Corporate revitalization support is provided mainly by the Corporate Support Office
Use of various types of revitalization schemes, such as reconstruction funds and the SME Business Rehabilitation Support Co-operative,
as well as solution sales[Changes in borrower classification for business borrowers] (one year)

Upper row: Number of borrowers

September 30, 2023

Lower row: Credi t a mount(Hundreds of mi l l i ons of yen)Normal borrowers
Borrowers requiring closemonitoring
September 30, 2022

Borrowers understrict observation
Borrowers
at risk of bankruptcy
Substantiallybankrupt borrowers
Bankrupt borrowers
Total

Borrowers
Borrowers underrequiringstrictclose monitoring
observation

Normalborrowers

Total

Borrowers at
risk ofbankruptcy

Substantiallybankrupt
borrowers

Rate of degradation
to at risk ofbankruptcy or
below

Bankrupt
borrowers

Improvement

Degradation

18,661

17,147

16,538

541

8

46

13

1

0.32%

609

39,61640,07039,156

832

66

16

1

0

0.04%

2,194

2,094

490

1,512

26

60

4

2

3.01%

490

92

3,435

3,336

749

2,423

57

105

1

0

3.11%

749

164

130

111

10

11

61

24

5

0

22.31%

21

29

304

275

10

24

163

77

1

0

25.57%

34

78

435

406

29

32

10

322

9

4

71

13

637

583

10

33

28

495

16

1

71

18

66

49

1

0

0

0

45

3

1

3

11

5

0

0

0

0

5

1

0

1

13

4

0

0

0

0

0

4

0

2

1

0

0

0

0

0

1

0

21,49919,811

17,068

2,096

105

452

76

14

583

746

44,00644,27039,926

3,311

313

693

23

3

854

1,174

–

914

–

(Note 1) The cha rt di s pl a ys the cha nges i n the borrower cl a s s i fi ca ti on from September 30, 2022 to September 30, 2023.
(Note 2) The ba l a nces a fter cha nges a re the ba l a nces a fter wri te-offs a s of September 30, 2023.

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐ 14 ‐

Management by Risk Category: Securities Investment(Units: Billions of Yen)

Six months ended September 30, 2023
Risk Category(*1)

Source of main revenue and profit

Evaluation
gain / loss

MarketbalanceYen-denominated bonds

497.0

+0.8

497.8

24.1%

(9.8%)

0.7

1.4

1.4

0.0

0.1

(0.8) Difference in long and short term interest on yen interest

Of which, JGBs

102.6

+5.8

108.4

5.2%

(1.7%)

2.2

2.1

2.1

0.0

0.0

+0.2

81.8

+4.5

86.2

4.2%

(1.6%)

1.6

0.9

0.9

0.0

0.0

+0.7 Rise in expected inflation rate

Foreign currency bonds (with hedges)

554.9(15.1)

539.8

26.1%

+11.7%(12.4)

(1.4)

6.4

7.7

1.5

(12.6) Difference in long and short term interest on overseas interest

Foreign currency bonds (without hedges)

500.5

(6.6)

493.9

23.9%

+6.8%

7.2

5.3

5.3

0.0

10.3

(8.4) Gain on foreign exchange /interest revenue

Domestic and overseas stocks (incl. stock trusts)

115.4+301.6

417.0

20.1%

(6.6%)

31.7

4.7

4.7

0.0

3.1

+23.9 Growth in domestic/foreign companies centered on transaction partners

Alternatives

112.2

+9.1

121.3

5.9%

(2.1%)

4.4

1.8

1.8

0.0

(0.3)

+3.0

Hedge funds

31.0

(3.3)

27.7

1.3%

(0.5%)

(0.9)

(0.0)

0.0

0.0

(0.3)

(0.6) Strategic diversification by external consigned management

Real estate-related

68.0

+11.4

79.4

3.8%

(1.3%)

4.6

1.4

1.4

0.0

0.0

+3.2 Revenue from real estate rentals and profit from price increase

Private equity

8.3

+0.0

8.3

0.4%

(0.2%)

0.2

0.2

0.2

0.0

0.0

(0.0) Rise in enterprise value due to management improvement of unlisted stocks, etc.

Emerging stocks

4.9

+1.0

5.9

0.3%

(0.1%)

0.5

0.1

0.1

0.0

0.0

+0.3 Growth and foreign exchange gains in emerging markets

1,779.9+289.82,069.7

100.0%

+0.0%

31.5

11.8

19.5

7.7

14.6

+5.1

Of which, inflation-indexed JGBs

Total

Total profit
Composition Vs. March / loss (*2)
2023

Profit / loss
Increase/
Interest and dividend income
from purchase, decrease on
Interestsale, andgain/loss on
Procurement
received
amortization evaluation (vs.
cost
(*4)
March 2023)
(*3)

Book
balance*1 Assets invested by the Financial Market Division calculated based on primary risk, regardless of accounting item (on the basis of including money held in trust, etc.)*2 "Total profit / loss" and "interest and dividend income" eliminate three-month SOFR interest, etc., as procurement costs, but this differs from actual procurement costs.
*3 Interest received includes gain / loss on cancellation of funds, etc., recorded in asset management revenue.
*4 Includes derivative-related gain / loss

<Of yen-denominated bonds and foreign currency bonds, investment conditions in credit risk and securitized products, etc.>
Credit risk
Securitized products
Subtotal

141.9

(4.3)

137.6

6.6%

(2.7%)

(1.1)

0.4

1.2

0.8

0.1

(1.6) Business continuity of domestic and foreign companies, etc.

1.2

(0.0)

1.2

0.1%

(0.0%)

0.0

0.0

0.0

0.0

0.0

(0.0) Loan interest revenue from housing loans, etc.

143.1

(4.3)

138.8

6.7%

(2.7%)

(1.1)

0.4

1.3

0.8

0.1

(1.6)

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐ 15 ‐

Balance of Investments by Region and Sector: Financial Market Business
Balance by Region (Final Risk Country Basis)

Balance by Sector (Final Risk Country Basis)(Units: Billions of Yen)

(Units: Billions of Yen)
September 2023
Loan balanceCommitment
balance

September 2023

Total

Composition

Japan

74.0

3.5

77.5

49.2%

North America

26.8

9.7

36.5

23.2%

(26.1)(9.7)(35.8)(22.7%)

Europe

20.6

0.0

20.6

13.1%

Asia and Oceania

13.8

0.9

14.7

9.4%

Middle East

3.0

0.0

3.0

1.9%

Latin America

2.8

0.0

2.8

1.8%

Other
(i nterna ti ona l orga ni za ti on)

2.2

0.0

2.2

1.4%

Total

143.5

14.1

157.6

100.0%(Of which, the U.S.)* Excl udi ng Si nga pore Bra nch

Loan balanceCommitment
balanceComposition

Total

68.1

5.4

73.6

46.7%

(37.9)(0.0)(38.0)(24.1%)

Manufacturing

25.4

2.8

28.3

18.0%

Financial

17.1

5.0

22.1

14.0%

Various services

14.2

0.0

14.2

9.0%

Transportation

11.4

0.0

11.4

7.3%

(7.8)

(0.0)

(7.8)

(4.9%)

Wholesale and retail

2.4

0.0

2.4

1.6%

Construction

0.8

0.0

0.8

0.5%

Other

3.7

0.7

4.5

2.9%

143.5

14.1

157.6

100.0%

Electricity and gas(Of which, solar power generation)(Of whi ch, a i rcra ft fi na nce)

Total
* Excl udi ng Si nga pore Bra nch

Copyright © 2023 Iyogin Holdings,Inc. All Rights Reserved.

‐ 16 ‐