First Half of Fiscal 2022
Earnings Briefing Materials(April 1, 2022 – September 30, 2022)
Investor Relations 2022

Iyogin Holdings
December 2, 2022
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

IndexI. Summary of Earnings for the First Half of Fiscal 2022

Bank

II. Transition to Holding Company Structure

Holding Company

III. Group Medium-Term Management Plan

Holding Company

III-1. Overview of Medium-Term Management Plan
III-2. Major Numerical Targets of Medium-Term Management Plan
III-3. Main Strategies and Progress of Medium-Term Management Plan
III-4. Efforts for Sustainability
III-5. Profit / Loss Forecasts and Capital Policy
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐1‐

Profit and Loss Overview for the First Half of Fiscal 2022 (Bank Consolidated)
Profit attributable to owners of parent increased significantly year-on-year due to a decrease in credit costs and an increase in gain (loss) related tosecurities, in addition to securing a high level of core business gross profit
Bank Consolidated(Units: Millions of yen)First half offiscal 2022

Increase/
Decrease

YoY

First half offiscal 2021

Core business gross profit

44,969+26

Interest and dividend income

37,727+692

37,035

Fees and commissions

4,625

(146)

4,771

2,616

(520)

3,136

26,157+622

14,627(111)

14,738

9,990

+400

9,590

Other operating income(Excluding profit/loss related to bonds
including JGBs, etc.)
Expenses (-) (Excluding extraordinary
retirement benefits, etc.)
Personnel expenses
Nonpersonnel expenses+0.05%+2.43%

44,94325,535

Taxes

1,540

+334

Core business net income

18,811(597)

Credit costs (-) ①+②-③-④
Provision of reserve for general loan
losses ①(761)(4,682)

3,921

－

(364)

364

Amortization of non-performing loans ②

312(3,502)

3,814

Reversal of allowance for loan losses ③

923

+923

‒

1,206
(3.07%)

19,408Recoveries of written off claims ④

150

(107)

257

Gain (loss) related to securities
Gain (loss) related to bonds including
JGBs, etc.
Gain (loss) related to stock, etc.

7,520

+3,564

3,956

5,846

+5,675

171

1,673(2,112)

3,785

Other temporary gain (loss)

1,822

+94

Ordinary income

28,915+7,743

1,728+36.57%

21,172Extraordinary income (loss)

(122)

(56)

(66)

Income before income taxes

28,793+7,688

21,105

Net income

20,312+5,379+36.02%

14,933

Profit attributable to owners of parent

19,877+5,010+33.69%14,867

Ordinary revenue

86,212+15,587+22.07%70,625Business net income

24,658+5,443+28.32%

19,215

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

■ Core business gross profit

Up ¥26 million YoY✓ Interest and dividend income increased, mainly in foreign-denominated loans andsecurities.
✓ Other operating income decreased due to decreases in gain (loss) on derivatives andrevenue on bond trading.

■ Expenses (-)

Up ¥622 million YoY✓ Nonpersonnel expenses such as depreciation increased due to an increase in strategic
investments. Also, taxes increased due to an increase in the consumption tax.

■ Credit costs (-)

Down ¥4,682 million YoY✓ Credit costs decreased due to reversal of provision for COVID-19 measures and adecrease in bankruptcies, etc.

(Since the amount of reversal exceeded the total amount of provision of reserve for general loan losses andprovision of reserve for specific loan losses, reversal of allowance for loan losses was recorded.)■ Gain (loss) related to securities

Up ¥3,564 million YoY✓ Gain (loss) related to bonds including JGBs, etc. increased due to the recording of a gainon sales of foreign bonds without hedges.
✓ Gain (loss) related to stock, etc. decreased due to decreased gain on sales of strategic
equity holdings.

■ Profit attributable toowners of parent

Up ¥5,010 million YoY‐2‐

Factors in Increase / Decrease in Core Business Gross Profit for the First Half of Fiscal 2022 (Bank Consolidated)
A high level of core business gross profit was secured due mainly to an increase in interest and dividend income
Year-on-year (First Half of Fiscal 2022 – First Half of Fiscal 2021)(Units: Billions of yen)
(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

Interest and dividend income(¥37.7 billion)

Gain on loan
management(¥25.3 billion)+1.29

Gain on securities
management(¥11.9 billion)(0.97)+0.03(0.53)Of which, foreign currency(¥5.5 billion)

+1.82

+0.69
Core business gross profit(¥44.9 billion)

Of which, domestic currency(¥19.8 billion)

Of which, domestic currency(¥6.2 billion)(1.73)Of which, foreign currency(¥5.6 billion)+0.76
Other (¥0.5 billion)
Fees andcommissions(¥4.6 billion)(0.14)+0.37

Volume factors (0.06) (Average loan balance down ¥12.9 billion)
Yield difference factors (0.47) (Yield difference down 0.02%)
Volume factors +1.12 (Average loan balance up ¥186.3 billion)
Yield difference factors +0.70 (Yield difference up 0.17%)
Volume factors (1.05) (Average securities balance down ¥121.7 billion)
Yield difference factors +1.61 (Increase in stock dividends, fund
distributions, etc.)
Gain on fund cancellation factors (2.29) (Recorded loss on
cancellation of investment trusts, etc.)
Volume factors (0.27) (Average securities balance down ¥27.6 billion)
Yield difference factors +1.03 (Yield difference up 0.38%)… Increase in interest on deposits with banks due to special interest granted by the Bank of Japan, etc.

… Solutions-related commissions +0.08, revenue on assets in custody +0.02, commission received on domestic exchange (0.13), loanrelated commissions (0.14), etc.

Other(¥2.6 billion)(0.52)
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

… +1.43 from gain (loss) on foreign exchange transactions, (1.55) from gain (loss) on derivatives, (0.30) from revenue on bond trading, etc.
‐3‐

Loans, Deposits, and Assets in Custody for the First Half of Fiscal 2022
Deposits, etc.

Deposits, etc. were up 1.0% year-on-year

Balance of deposits, etc. by region
Region(Units: Billions of yen)First Half of
Fiscal 2021

First Half of
Fiscal 2022

Balance of loans by region(Units: Billions of yen)First Half of
Fiscal 2021

RegionIncrease/
Decrease

YoY

Loans were up 6.0% year-on-year

Loans

First Half of
Fiscal 2022

Increase/
Decrease

YoY

Within Ehime Prefecture

4,990.7

5,179.2+188.5+3.8%

Within Ehime Prefecture

2,496.4

2,675.8+179.4+7.2%

Shikoku (excluding Ehime)

291.4

290.5

(0.9)

(0.3)%

Shikoku (excluding Ehime)

340.1

343.5

+3.4

+1.0%

Kyushu

185.1

186.5

+1.4

+0.8%

Kyushu

318.6

333.3

+14.7

+4.6%

Chugoku

285.7

289.0

+3.3

+1.2%

Chugoku

483.5

482.5

(1.0)

(0.2)%

Kinki

193.4

191.6

(1.8)

(0.9)%

Kinki

388.2

380.4

(7.8)

(2.0)%

Tokyo and Nagoya

496.8

422.0

(74.8)(15.1)%

Tokyo and Nagoya

620.9

671.1

+50.2

+8.1%

Singapore

34.3

81.8

+47.5

+138.5%

Financial Market Business Office

112.6

135.8

+23.2

+20.6%

Offshore, etc.

125.2

28.8

(96.4)(77.0)%

Total (domestic branches)

4,760.5

5,022.7+262.2+5.5%

6,603.0

6,669.7

+66.7

+1.0%

Singapore

198.5

234.6

+36.1

+18.2%

4,959.1

5,257.4+298.3+6.0%

Balance of assets in custody(Units: Billions of yen)First Half of
Fiscal 2021

First Half of
Fiscal 2022

Increase/
Decrease

YoY

Group assets in custody

600.2

611.9

+11.7

+1.9%

Balance at the Iyo Bank

353.9

357.7

+3.8

+1.1%

Balance at Shikoku Alliance
Securities

246.3

254.2

+7.9

+3.2%

Sales of Group assets in custody

75.1

64.6

(10.5)(14.0)%

Sales at the Iyo Bank

30.4

30.0

(0.4)

(1.3)%

Sales at Shikoku Alliance
Securities

44.7

34.5

(10.2)(22.8)%

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Total

Share within Ehime Prefecture as of September 30, 2022
(excluding Japan Post, agricultural cooperatives, etc.)
Deposits

Assets in Custody

Balance of assets in custody were up 1.9%
year-on-year

Loans

Total

The
Bank

Regional banks otherthan the BankCity banks /Trust banks

Second regionalbanks

Credit unions‐4‐

Credit Costs and Disclosed Non-performing Loans for the First Half of Fiscal 2022 (Bank Consolidated)
Credit Costs
Credit costs by factor(Units: Billions of yen)First Half

Fiscal 2020

First Half

Fiscal 2021

Fiscal 2022
First Half

YoY

Credit costs total

2.1

13.3

3.9

4.3

(0.7)

(4.6)

Provision of reserve for general loan
losses

0.7

9.5

0.3

(0.7)

(2.5)

(2.8)

Amortization of non-performing loans

1.6

4.4

3.8

5.7

1.9

(1.9)

Bankruptcies

0.3

0.5

1.4

1.4

0.0

(1.4)

Downgrades, etc.

2.6

6.2

3.4

6.5

3.3

(0.1)

Upgrades and collections

(1.7)

(2.8)

(1.5)

(2.8)

(1.6)

(0.1)

Other Group companies

0.4

0.5

0.5

0.6

0.2

(0.3)

Recoveries of written off claims (-)

0.1

0.6

0.2

0.5

0.1

(0.1)

[Reference] Credit management
expense ratio (Nonconsolidated*)

0.06%

0.26%

0.14%

0.08%

(0.03)%(0.17)P

Credit costs were down ¥4.6 billion year on year
due to a decrease in provision of reserve for generalloan losses as a result of reversal of provision for
COVID-19 measures, and a decrease in amortizationof non-performing loans owing to decreased
bankruptcies
Since the total amount of provision of reserve forgeneral loan losses and provision of reserve for
specific loan losses is negative, reversal of
allowance for loan losses is recorded in thefinancial statements. However, it is not shown in
the table on the left for the purpose ofcomparative analysis with the past results.

(*) Credit management expense ratio = Credit costs (Bank Nonconsolidated) / Average loan balance (Bank Nonconsolidated)

Ratio of Disclosed Non-Performing Loans
Amounts and ratios of disclosed non-performing loans under the Financial Reconstruction Act
Fiscal 2020

First Half

(Units: Billions of yen)

Fiscal 2021

Fiscal 2022
First Half

YoY

Loans to bankrupt or effectively bankrupt borrowers

3.8

2.0

1.9

1.7

(0.3)

Doubtful assets

54.2

59.0

63.3

66.3

+7.3

Credit subject to specific risk management

16.8

23.9

23.7

24.3

+0.4

Total disclosed non-performing loans

74.8

85.0

89.1

92.4

+7.4

Ratio of disclosed non-performing loans

1.42%

1.62%

1.66%

1.67%

+0.05P

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Although amounts of disclosed non-performing
loans have been on an increasing trend amid the
COVID-19 pandemic, ratio of non-performing loancontinued at a low level of 1.67%.
‐5‐

Evaluation Gain (Loss) on Securities and Equity Ratio for the First Half of Fiscal 2022 (Bank Consolidated)
Equity Ratio¥255.2 billion

Evaluation Gain on Securities
 Maintained a top level among regional banks

 Secured high soundness, sufficiently exceeding required equity ratio(Hundreds of Millions of Yen)

March 201714.55%

Nikkei Average (Yen)

March 2018

March 2019

March 2020

Gain / loss on securities
Nikkei average (right axis)(left axis)(Note) Excludes evaluation gains / losses on money held in trust

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

March 2021

March 2022

September
2022

March 2017

March 2018

Tier 1 ratio for common
stock, etc.

March 2019
Gross equity ratio

March 2020

March 2021

March 2022

September
2022

‐6‐

IndexI. Summary of Earnings for the First Half of Fiscal 2022

Bank

II. Transition to Holding Company Structure

Holding Company

III. Group Medium-Term Management Plan

Holding Company

III-1. Overview of Medium-Term Management Plan
III-2. Major Numerical Targets of Medium-Term Management Plan
III-3. Main Strategies and Progress of Medium-Term Management Plan
III-4. Efforts for Sustainability
III-5. Profit / Loss Forecasts and Capital Policy
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐7‐

Transition to Holding Company StructureGroup structure after the transition (established on October 3, 2022)

Iyogin Holdings
Iyo Bank

Banking services

Iyogin Business Service

Business support services

Iyogin Challenge & Smile

Business support services* Special subsidiary company

4 affiliates

Management business ofinvestment fund, etc. (3 companies)
Support business for branding anddevelopment of sales channels*

Iyogin Credit Guarantee

Credit guarantee services

Iyogin Capital

Investment business

7 consolidated subsidiaries

Venture fund2 non-consolidated subsidiaries Venture fundIyogin Regional Economy ResearchCenterInvestigation and research businessregarding finance, economics, etc.
Management consulting businessIyogin DC Card

Credit card businessIyogin Leasing

Lease businessIyogin Computer Service

Business related tocomputer, etc.
Financial instruments
business

Shikoku Alliance Securities*An advanced banking service company (Trade name: Shikoku Brand)
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Inheriting the spirit of the Iyo Bank’s Corporate Credo

The Group’s Corporate Credo“Creating a bright and prosperous future for the region” “Offering the best service and being
worthy of people’s trust” ”Rendering our best service with gratitude in our hearts”

Purpose of the transition to a holding company structure
Expansion of business fields inlight of relaxation of regulations

Enhanced group governance bystrengthening business
management functions

Maximizing group synergies bychanging employee and officer
awareness and behavior‐8‐IndexI. Summary of Earnings for the First Half of Fiscal 2022

Bank

II. Transition to Holding Company Structure

Holding Company

III. Group Medium-Term Management Plan

Holding Company

III-1. Overview of Medium-Term Management Plan
III-2. Major Numerical Targets of Medium-Term Management Plan
III-3. Main Strategies and Progress of Medium-Term Management Plan
III-4. Efforts for Sustainability
III-5. Profit / Loss Forecasts and Capital Policy
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐9‐Group Medium-Term Management Plan
Toward achieving a long-term vision of a “corporate group continuing to create and provide new value,” the Group Medium-Term Management Plan consists of six business strategies
including “New Business Strategies” aiming for expansion of business fields and four plans. We will work to further deepen and evolve the DHD model by the Group as a whole toimprove sustainability as a corporate group.

Corporate related
Personal relatedNewbusinesses

Ship relatedMarketinvestment

BPR

DigitalTouch Points

Creation of newservices and new businesses
Deepening and evolving the DHD
model = “DX”

DigitalOperations

Sincerely serving eachcustomer throughhuman and digital
approaches

Change in company culture(fixed thinking)

Plan

Human
ConsultingIT

HR development

Branches

Human resources

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Review of existing businessand reduction intechnical debt

Improvementin customer
experiencevalue (CX)

Achieving a long-term vision

Business Strategies

The Group‐ 10 ‐

New Business Strategies<Basic policy> Create earning opportunities by continuously developing businesses and operations that contribute to solving regional issues and improving
sustainability through appropriate and bold risk-taking
Consideration of new businesses
Assumed Issues
Consideration of Operationalization
Improving problem
solving andearnings power

Take on the challenge of new
operations that contribute toimprovement of sustainability inthe region

 Reduce risks in procurement and use of energy

Strengthening operations related tosolving increasingly evident regional issues
such as depopulation and the need for
productivity improvement

 Appropriately secure and develop necessary
human resources

12.0% or more

Ratio of Outside Directors:

1/3 or more

System to ensure theappropriateness ofbusiness operations:

Appropriately
developed

Other Group
Companies(etc.)

Obtained certification as authorized bank holding company

Equity ratio:

The Bank

 Increase sales through effective sales－Vision for the future－

Met authorization criteria

Select the Best
Method for
the Group Increase productivity by introducing digitaltechnology

Banking services, guarantee, investments, credit cards,
lease, asset management, insurance, business succession,
M&A, business matching, etc.
－Current－

New
Company

 Revitalize through business attraction,business foundation, tourism, etc.

Obtainedcertification

Authorized bank holding
company*

Iyogin Holdings
Realization of speedy and agile
business development*An authorized bank holding company may have companies exclusively engaged in the services of a special subsidiary company as its subsidiarycompany (excluding the subsidiary company of a bank which is the subsidiary company of that bank holding company) by notification rather thanby permission.
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Organize a system for creating sustainable new businesses
 Establishment of organization in charge
Design of the organization in charge is under consideration for raisingawareness on new business challenges across the Group and taking speedy
action Creation of ventures in the Group
Creation of a system is under consideration for bringing out spontaneous ideas
from employees, including young people, and enabling them to engage inoperationalization‐ 11 ‐

IndexI. Summary of Earnings for the First Half of Fiscal 2022

Bank

II. Transition to Holding Company Structure

Holding Company

III. Group Medium-Term Management Plan

Holding Company

III-1. Overview of Medium-Term Management Plan
III-2. Major Numerical Targets of Medium-Term Management Plan
III-3. Main Strategies and Progress of Medium-Term Management Plan
III-4. Efforts for Sustainability
III-5. Profit / Loss Forecasts and Capital Policy
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐ 12 ‐

Medium-Term Management Plan _ Major Numerical Targets I
 Currently, a profit level that exceeds the plan has been achieved, and the numerical targets are proceeding smoothly Following the transition to a holding company system, we have newly added “Core business gross profit of Group companies (excluding the Bank)” to thenumerical targets, aiming to achieve ¥9.0 billion in fiscal 2023, from the perspective of expanding business fields by the entire Group
Major Numerical Targets

Fiscal 2021
Results

Fiscal 2022
Expected

Targets for
Fiscal 2023

Consolidated core business gross profit¥90.4 billion¥87.0 billion¥86.0 billion

Profit attributable to owners of parent¥26.4 billion¥28.0 billion¥23.0 billion

Consolidated ROE (shareholders’ equity basis)

5.34%

5.41%

4.0% or more

Consolidated core OHR

57.05%

60.06%

Approx. 60.0%

Consolidated common stock Tier 1 ratio

14.28%

14.66%

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

Items

New

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 © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐ 13 ‐

Medium-Term Management Plan _ Major Numerical Targets II
Deposits, etc.

Planning an average balance for fiscal 2023 totaling ¥6,870.0 billion with an increase by approx. ¥685.0 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

Expected

Fiscal 2023
YoY

Plan

Increase/decrease during
the Plan

YoY

Average deposits, etc., balance

6,184.6

6,623.1+438.56,790.0+166.96,870.0+80.0+685.4

Of which, individual deposits

3,658.3

3,807.9+149.6

3,908.0+100.1

3,963.0+55.0+304.7

Group assets in custody balance

593.5

607.1

+13.6

625.0

+17.9

657.0

+32.0

+63.5

Of which, balance at the Iyo Bank

348.3

361.1

+12.8

359.0

(2.1)

372.0

+13.0

+23.7

Of which, balance at Shikoku Alliance
Securities

245.2

246.0

+0.8

266.0

+20.0

285.0

+19.0

+39.8

Loans

Planning an average balance for fiscal 2023 totaling ¥5,230.0 billion with an increase by approx. ¥335.0 billion for three years

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

Fiscal 2020
Results

Fiscal 2021
Results

Fiscal 2022
YoY

Expected

Fiscal 2023
YoY

Plan

Increase/decrease during
the Plan

YoY

Average loan balance

4,894.4

5,002.1+107.7

5,195.0+192.95,230.0+35.0+335.6

Corporate loans

3,246.8

3,303.7+56.9

3,458.0+154.33,491.0+33.0+224.2

1,438.6

1,492.5+53.9

1,597.0+104.5

1,599.0+2.0+160.4

Individual loans

1,130.7

1,157.3+26.6

1,168.0+10.7

1,177.0

+9.0

+46.3

Municipal loans

232.2

213.1

(19.1)

199.0(14.1)

185.0(14.0)(47.2)

Financial Market Business Office

116.3

115.6

(0.7)

132.0

+16.4

136.0

+4.0

+19.7

Singapore Branch

168.2

212.1

+43.9

238.0

+25.9

241.0

+3.0

+72.8

Of which, within Ehime

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐ 14 ‐

IndexI. Summary of Earnings for the First Half of Fiscal 2022

Bank

II. Transition to Holding Company Structure

Holding Company

III. Group Medium-Term Management Plan

Holding Company

III-1. Overview of Medium-Term Management Plan
III-2. Major Numerical Targets of Medium-Term Management Plan
III-3. Main Strategies and Progress of Medium-Term Management Plan
III-4. Efforts for Sustainability
III-5. Profit / Loss Forecasts and Capital Policy
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐ 15 ‐

Business Strategies _ Corporate Related I
Business Feasibility Assessment

Solution Revenue Results

Customer issues and needs
Business foundation

Growth(Millions of Yen)

Matured

OthersReform/ Decline

Overseas, derivatives
Corporate solutions revenue*

Purchase
Logistics

Production

Shipment
Distribution

Sales
MarketingServices

Purchase
Logistics

Production

Shipment
Distribution

Sales
Marketing* Financing-related (including related
derivatives), business succession and M&A,
business matching, corporate life insurances,etc.

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
Number of business feasibility assessment
investigation committee held

Iyogin Holdings
Banking
Securities

Guarantee

Systems
Lease

CapitalThink tank×

Support inconsideration ofcooperation withpartnercompanies,
external experts,
local public
entities, etc.

Credit cards

Fiscal 2020

Diverse consulting lineup

Diverse funding

M&A / businesssuccession

ICT consulting

Lease

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

First half of
Fiscal 2022

Fiscal 2022 Plan

Fiscal 2023 Plan

Aim to expand Group solution revenues

Staffing business

Credit cards (etc.)

Fiscal 2021

Fiscal 2020

Fiscal 2021 First half of Fiscal 2022 Fiscal 2023
Plan
Plan
Fiscal 2022

by further strengthening cooperation with Group companies‐ 16 ‐

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

Staffing Business and Human Resource Development Related Businesses

 Steadily increased in number of cases for business succession with a record-high result during ahalf-year period
 M&A is expected to extend from cases carried over to the second half of fiscal 2022

 Steadily increased to a total of 1,099 inquiries including 213 contracts since the service started
in April 2020
(Number)Number of new inquiries
Number of contracts(Number)Business succession

Fiscal 2020

Fiscal 2021

 Intra-Group Cooperation
First half of
Fiscal 2022

Fiscal 2021

Fiscal 2020

Fiscal 2022 Plan

Fiscal 2023 Plan

Fiscal 2023 Plan

 Holding various seminars

Iyogin Capital (ICC)
Investment

Management
supportFiscal 2022 Plan

Iyo Bank (IBK) Intra-Group Cooperation
Iyo Bank (IBK)First half of
Fiscal 2022

Customers

Iyogin Group Companies
 The entire Group provides multifaceted
management support to invested
companies

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

 Invest in customers to take over issues
such as business succession throughcooperation between IBK and ICC
 Discover new regional businesses by
providing risk capital to venturecompanies

Iyogin Regional Economy Research Center (IRC)

Customers(Number)(Number)Number of business seminars held (cumulative)
Number of employee seminars held individually by Group companies (cumulative)
Number of participants in executive seminars (cumulative)

Consider setting up
new growth support funds, etc.
Fiscal 2020

Fiscal 2021

First half of
Fiscal 2022

‐ 17 ‐

Business Strategies _ Corporate Related III
ICT Consulting

Credit Cards

 Intra-Group Cooperation
 Reflecting high demand for DX, both the number of proposals and the number of contracts areon an increasing trend(Number)Number of proposals

Iyogin Computer Service (ICS)

Number of contracts<Target: Cumulative number of cards issued>
Fiscal 2023: 9,000(Millions of Yen)

(Number)<Target: Cumulative number of merchants>
Fiscal 2023: 4,000(Number)(Millions of Yen)

Amount of transactions via corporate cards

Amount of transactions

Number of corporate cards issued

Number of merchants of the Group

Providing technology/advice

Iyo Bank (IBK)Make optimal
proposals throughcooperation
between IBK and ICS
Fiscal 2020 Fiscal 2021 First half of
Fiscal 2022

Fiscal 2022 Fiscal 2023
Plan
Plan

Lease

Customers
Number of contracts (Number)

Fiscal 2020 Fiscal 2021

 Intra-Group Cooperation

Promote efficiency in expense calculation bycooperating with ICT consulting as well

Iyo Bank (IBK)

Customers
Iyogin Leasing (ILC) Support customers in capital investment
through cooperation between IBK and
ILC Utilize data on equipment needs
collected by IBK through meetings andprovide proposals for lease utilization by
ILC
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Fiscal 2022 Fiscal 2023
Plan
Plan

Fiscal 2020 Fiscal 2021 First half of
Fiscal 2022

Fiscal 2022
Plan

Fiscal 2023
Plan

Amount of contracts (Millions of Yen) Intra-Group Cooperation
Iyo Bank (IBK)Fiscal 2020 Fiscal 2021

Fiscal 2022 Fiscal 2023
Plan
Plan

Focus on developing merchantsMarket has tended to recover partially owing
to the resumption of economic activities

 Jointly manage back-office operations from August 2022
 Outsource the Bank’s personal card membership
operations, etc. to IDC
 Improve operational efficiency by eliminating similar
operations and generate sales resources

Iyogin DC Card (IDC)
Fiscal 2020 Fiscal 2021 First half of
Fiscal 2022

Fiscal 2022
Plan

Fiscal 2023
Plan

‐ 18 ‐

Business Strategies _ Personal Related I
Providing integrated solutions and customer experience value for each customer by promoting popularization of DHD services including AGENT app
House purchasing plan with a smartphone

A bank on your palm

 Alternative services for branch functions and internet banking

 The app allows performing procedures from
opening of account to inheritance Scheduled to implement remitting function in
Spring 2023

 Creating highly frequent contact points
with customers
 October 2022: Linked with read and write APIs

At the end of fiscal 2023

Targeting100 Growing as a housing loans infrastructure
 73% of HOME rate* and 216 locations of “HOME HOUSE BUILDER,” targeting housing companies in thefirst half of fiscal 2022
 Scheduled to renew main step-up interest rate type products and expand the line-up of group credit life
(Hundreds of
insurance(* Percentage of housing loan application
Balance of housing loans
HOME rate*

Millions of Yen)

thousands of users

using HOME)

for Visa debit Improving usability July 2022: Renewed to UI/UX based on chatfunctionLife design based on AGENT
Simulation tool that allows customers tochart various future plans

Customer contact points(touch points)
Digital touch points

Digital operations

Channels that can be usedregardless of time and place

Customer consultations

Fiscal 2020
Consulting

Human consulting Extensively renewed in September 2022
 Significant improvement in UI/UX Easy and simple check in approx. 10 minutes
 Adding new functions such as “Asset Management Simulation”
 Providing value according to each customer’s life plan and life
events By having advance knowledge of users’ life events, it makes timely
proposals for adequate advice and product/service possible
 Enhancing appeal for customers in the mass retail category bycooperation of various channels
 Providing face-to-face consulting services after sharing life plans
with advisors
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Building relations with customers
by utilizing digital technology

Fiscal 2021

First half of
Fiscal 2022

Fiscal 2022
Plan

Fiscal 2023
Plan

New card loan service that issues notifications on insufficient amount Number of contracts is increasing following line-up renewal in February 2022
 “Premium” type which offers interest rates based on “risk ranking” instead of the “borrow amount”
 Number of contracts is increasing due to the differentiation of services and application function
increasing the borrow amount has received a favorable reception, it contributed to an increase inbalance Expanded target areas in October 2022 to further strengthen promotion(Number)Number of cumulative contracts

Fiscal 2020

Fiscal 2021

First half of
Fiscal 2022

Fiscal 2022 Plan

Fiscal 2023 Plan

‐ 19 ‐

Business Strategies _ Personal Related II
Start a job Get married Have children
Sharing dreams with customers

Asset Using Stage (50s - 60s)

Home purchaseChildren leave home

Visualizing changes in balance
and assets

RetireAsset Bequeathing Stage (70s -)Prepare for Bequeathing

Receive pension

Sharing needs

Closely support customers’ lives to delving into their needs
 In the era of 100-year lifespans, as the lifestyles of our customers diversify, it
is necessary to build assets in a planned manner according to life plans.
 LIFE PALETTE enables the sharing of dreams that customers want to achieve
and the visualization of changes in balance and assets to create life plans foreach customer.

 Saving and Increasing: for future Preserving and Bequeathing: for
precious family
 Preparing: for unexpected events

Delving into needs

Life Stages

Asset Building Stage (20s - 40s)

Providing consultation

Providing consulting services for each customer
Saving and Increasing

Preserving and Bequeathing

Preparing Supporting stable, long-term asset formation based ondiversification in terms of time, currency, and assets
 Providing sophisticated asset management consulting services
through cooperation between bank and securities

 Responding to diversified and enhanced needs for bequeathing by
combined efforts of bank branches and headquarters
 Offering a range of services, including a wealth of life insurance
products, will writing support, civil trust, and handling of thebequeathing process Providing sophisticated consulting services in cooperation with
HOKEN NO MADOGUCHI GROUP to prepare for future risks anddeliver safety to customers
 Developing system for online consultation as well as face-to-faceconsultations<Number of Customers and Number of Policies Held in Level
Premium Insurance>(Number)<Change in Group Assets in Custody Balance>* Including individual deposits in foreign currencies(Hundreds ofMillions of Yen)

Iyo Bank<Number of Customers of Trust-Related Contracts>(Number)* Cumulated contract number - number decreased due to death, etc.

Number of Customers

Shikoku Alliance Securities

Number of Policies Held

Fiscal 2020 Fiscal 2021

First half of Fiscal 2022 Fiscal 2023
Fiscal 2022
Plan
Plan

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Fiscal 2020

Fiscal 2021

First half of
Fiscal 2022

Fiscal 2022
Plan

Fiscal 2023
Plan

Fiscal 2020

Fiscal 2021

First half of
Fiscal 2022

Fiscal 2022
Plan

Fiscal 2023
Plan

‐ 20 ‐

Business Strategies _ Ship Related I
Environment Surrounding Ship Owners
 Amid large fluctuations in foreign exchange and interest rates as well as market conditions, investment
decisions remain difficult for ship owners due to soaring costs of producing new ships and ship management.

 Environmental regulations
IMO has adopted a goal of reducing total GHG emissions by 50% by 2050.

 Ship Owners’ Business Status

 “Strategy on the reduction of GHG emissions” by IMO

Favorable factorsConcerns

Ongoing weaker yen, up more than ¥20 in six months
Continuing low yen interestDecrease in supply of small and mid- to small-sized bulkers
Extension of cargo transport distance due to geopoliticalevents

Sharp increase in U.S. dollar interest
Continued high price of steel and materials
Decrease in demand of cargo transport due to global
economic slowdown
Sharp decline in container freight rate in last few months

Our Loan Policies in Line with Solutions in Preparation for Risks of Market Condition
Downturn
 Emphasis on a portfolio not overly depending on short-term charters/charters related to market condition
and asset value of ships held
 Proposing derivatives, etc., that prepare for risks of future fluctuation in foreign exchange and interest rates
 Emphasis on long-term relationships and make judgements on customers’ comprehensive ability in a
multilateral manner
Financial position,
operating balance
and market value

Management

Comprehensive
abilitypolicy and future

Solid relationships

prospects

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Determine policies on investments andloans by making judgements oncustomers’ comprehensive ability

2008
Base year ofemissions(Note) IMO: International
Maritime Organization(Note) GHG: Greenhouse Gas

2023

2030 Target
40% efficiency
improvement

2050 Target
50% reduction in
total emissions

Long-term Target up to 2100
GHG zero emissions

New regulations on energy efficiency targeting existing ships will startin 2023 to achieve the 2030 target

Efforts to Support Decarbonizationin Ocean Transport Loans for ships manufactured by Japanese
shipbuilding yards that have high fuel efficiency
 Initiatives on loans for LNG dual-fuel ships
 Loans for ships following the regulations on energy
efficiency starting 2025 in advance Initiatives for Sustainability Linked Loans (March
2021) and Transition Loans (September 2021)
 Efforts toward matching energy saving device
manufacturers with ship owners

Ratio of ships designed with environmental
initiative in mind in loan cases decided
EEDI Phase 3
Dual-fuel Ships(LNG, LPG and Methanol)
Conventional Ships
and Used Ships*Within ship-related cases approved in the recent 6 months

Decarbonization in Ocean Transport and Asset Value of Ships
 Relatively high environmental performance  Assets with quick turnover rate
Domestic ships on our loans are on average 5
Loans for ships, in principle, have a maximum
years old and are mostly manufactured inperiod of 15 years after manufacture, and mostJapan, and have relatively high fuel efficiency
ships are sold by around 10 years old, resulting in aquick renewal cycle for the assets‐ 21 ‐

Business Strategies _ Ship Related II
Loan Balance for the Maritime Industry¥1,227.1 billion

Status of Balance Changes by Segment
 For Domestic and Overseas Ocean Transport Significant increase in newly executed amount due to the increase in number of cases executed and thetrend of ships getting larger and higher priced
 In addition, significantly weaker yen* during the fiscal year resulted in an increase in foreigndenominated loan amounts when translated into yen(Hundreds of Millions of Yen)
For other maritime industries and overseas
For domestic and overseas ocean transport(Hundreds of Millions of Yen)

Breakdown of changes in balance for domestic and overseas
ocean transport in the first half of fiscal 2022

+662

+1,370

(465)

(158)

New
transactions

Scheduledpayment

 For Other Maritime Industries

Advancerepayment

9,093

Compared tofiscal 2021
+1,409

7,684

Fiscal 2021

* In comparison with the US dollar and Swiss franc

Impact of foreignexchange rates

First half of
Fiscal 2022

[Reference]
March 31, 2022
TTM to US dollar: 122.39 yen
TTM to Swiss franc: 132.54 yen
September 30, 2022
TTM to US dollar: 144.81 yen
TTM to Swiss franc: 148.58 yen
Impact from change in exchange
rate per yen
US dollar: 1.98 billion yen
Swiss franc: 1.97 billion yen(As of September 30, 2022)

 Increase from the end of the previous fiscal year mainly due to capital investment for logistics facilities ofcoastal trading vessels and maritime businesses
 For Overseas Offices
Fiscal 2019

Fiscal 2020

Fiscal 2021

First half of
Fiscal 2022

 Increase in amounts when translated into yen owing to ongoing weaker yen despite temporary decreasein balance in dollar due to selling ships and advance repayment from surplus funds

Solutions the Bank Aims to Provide
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
we have business relationships with are facing

Provision of Diverse
Funding Sources

 Composition of syndicated loans based on the framework of the
TSUBASA Alliance, etc.
 Initiatives for Sustainability Linked Loans and Transition Loans Loans for higher priced next-generation-fuel ships

Improvement in Researchand Analysis Capabilities
Concerning the Maritime
Industry in General Gathering of extensive information centered on Tokyo and Imabari More advanced case evaluation based on gathered data and market
position analysis
 Acquisition of operational knowledge by dispatching employees toship management companies

Enrichment in Activities
Connecting
Domestic and Overseas
Maritime Industries

 Aiming for business matching and case intermediation through aunique information network

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐ 22 ‐

Business Strategies _ Market Investment I
Investment Policy by Risk Category(Risk category)

Securities Performance(Direction)(Policy for investment)●Keep the balance as a bond including foreign bonds as assets inversely
correlated with stocks.
Restore●For foreign bonds (with forex hedges), the balance is temporarily shrunkbalance
Foreign bonds
in anticipation of rising interest rates. In the future, the balance is(with forex hedges)
planned to be restored gradually.
Foreign bonds●Adjust the balance and implement strategic re-balancing according to(without forex Not change the situation while keeping a certain amount to secure stable profit
hedges)from carry trading.
●Sell off stocks held for strategic purposes if the necessity of holding is
Domestic andnot recognized.
Decreaseoverseas stocks●Purchase stocks held solely for investment purposes of which growth isexpected in the medium- to long-term view.
Yen-denominatedbonds

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

Balance of Securities at Market Value by Risk Category(Hundreds ofMillions of Yen)

Alternatives, etc.

(Of

Domestic and overseas stocks(including investment trust)

Foreign bonds(without forex hedges)

Foreign bonds(with forex hedges)(Hundreds ofMillions of Yen)

(Hundreds ofMillions of Yen)

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

-300

(97)
Fiscal 2021

Fiscal 2020

(99)
First half of Fiscal 2022

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

Total for last 10 years(right axis)* For fiscal 2022, values
recorded only for the
first half

-1,000

Portfolio Risk Sensitivity and Duration
Yen-denominatedbonds

 Portfolio risk sensitivity (As of September 30, 2022)● Yen-denominated bond portfolio 10BPV● Foreign bond portfolio (with forex hedges) 10BPV● Foreign bond portfolio (without hedges) 10BPV● Stock portfolio Nikkei Stock Average ¥1,000V, JGBs)¥2.6 billion¥1.1 billion¥0.8 billion / exchange ¥10V ¥20.2 billion¥10.3 billion

 Duration
10 years
8 years
6 years
4 years
2 years

Fiscal 2020

Fiscal 2021

First half of
Fiscal 2022

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Fiscal 2022 Plan

Fiscal 2023 Plan

0 years

Yen-denominatedbonds

Fiscal 2019

Foreign bonds (with forex hedges)

Fiscal 2020

Fiscal 2021

First half of
Fiscal 2022

Fiscal 2022
Plan

Fiscal 2023
Plan

‐ 23 ‐

Business Strategies _ Market Investment II
Status of Foreign Currency Investment and Procurement[September 30, 2022]

Loan Balance Plan [Financial Market Business Office](Hundreds ofMillions of Yen)

<Loans + Market Investment (Securities) >Year-end balance

Mainly assets with high liquidity

Loans

Investment

Securities, etc.

Mainly assets with low liquidity

Procurement

Fiscal 2020

Fiscal 2021

First half of
Fiscal 2022

Fiscal 2022 Plan

Deposits, etc.

Short-term
procurement

Long-term
procurement

Repo
procurement

Choose foreign currency procurement methods in line with asset
composition

Fiscal 2023 Plan

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
Stability gap is positive(excessive investment)

Procurement

Deposits, etc.

Long-term
procurement

Liquidity gap is negative(excessive procurement)
Commitment line

Cash flow risk is guaranteed with commitment lines■ Japan■ North America■ Asia/Oceania ■ Other■ Europe

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

■Electricity and gas ■Manufacturing■ Transportation■ Various services■ Finance■ Other

Stability gap: Loans, etc. - (Deposits, etc. + Long-term procurement)
Liquidity gap: Loans, etc. - (Deposits, etc. + Long-term procurement + Commitment line)‐ 24 ‐

Cross-Sectional Efforts Supporting Business Strategies _ BPR Strategy I
Added new function “Inheritance procedures” to AGENT app, a bank on your palm

 Additional functions have been gradually released aiming to lower the load of administrative work both on
customer and the Bank sides and to provide unprecedented experiences

AGENT Tab

AGENT APLAGENT Tab

AGENT APLNew Functions

Next

Effect of BPR at Bank Branches(Amount of administrative work/Number of administrative staff)[Administrative staff in charge of operations][Inheritance procedures]

As of September 30,
2022

Amount of administrative work
Number of administrative staff

Upload required documents to the app

Minus 365
Administrative Staff[Compared tofiscal 2017]

Reception by employees via video chat
Available from inheritance application toprocedure
Digitalized approx. 40% of
administrative works at bankbranches

Realized “a bank on your palm”

Possible to make inheritance proceduresfrom home, etc.

PatentappliedFundamental review of workflow using the next bank branch system (scheduled) Due to system renewal at bank branches scheduled in 2023, workload equivalent to approx. 156
administrative staff is expected to reduce

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

“New Centralized Operation System”
Reducing operations
at bank branches

Expandingheadquarterscentralized operations

Leveling load in peakand off-peak periods

Reducing
administrative work
related to ordering✓ Centralizing operations such as slips handled on the
day to the headquarters✓ Paperless handling for deposit and withdrawal, andremitting✓ Downsizing number of branch terminals, targeting
cutting by half

<Development of BPR Measures>“AGENT app,” a bank on your palmCentralized storage of contracts and documents stored in theheadquarters
Electronic contracting and cooperative
execution for business loans
AGENT app “Inheritance procedures”

Fiscal 2015 Medium-Term
Management Plan
Fiscal 2018 Medium-Term
Management Plan

2015

2018

2021

Introduced Branch Link at all bank branches(remote management)
Started trial operation of the Headquarters
Operation Support Center
Outsourced cash management business to Group
company (IBS)2023

First half of
Fiscal 2022

[Administrative staff in charge of loans]Amount of administrative work
Number of administrative staff

Fiscal 2023
Plan

As of September 30,
2022

Minus 58
Administrative Staff[Compared tofiscal 2019]■System renewal at bank branches■Loan support system renewal■Operations of the Loan-Related Administrative
Work Support Center covered all bank branches■New online system for international affairs■Building taxes and government feescollection system■Transition to digitization of prospectus
deliveryFiscal 2019
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Fiscal 2021

Fiscal 2020

Fiscal 2021

First half of
Fiscal 2022

Fiscal 2023
Plan

‐ 25 ‐

Cross-Sectional Efforts Supporting Business Strategies _ BPR Strategy II[Current situation] Effect of headquarters workload reduction (Working
hour reduction)[Changes] Transitioning to a holding company structure/Centralizing common and overlapping
operations

Iyogin Holdings

Centralizing common and overlapping
operations

Guarantee

Systems

200

150■ Centralizing common and overlapping
operations dispersed■ Equalizing and improving work levels■ Minimizing administrative and routine
works■ Development, operation andLicensedmaintenance of system

CapitalLease(Thousandhours)→ Utilizing group functions anddigital technologies

Banking
Securities Reduce headquarters operations, including abolishment and review of operations,through automation of operations utilizing BPR and RPA
 With development and maintenance structures for application flow database and RPA,
entirely created in-house, build internal management structures

Think tankCredit cards

100

Expensepayment

Expanding RPA (including BPR) to theentire Group

Centralize

Expensepayment

DB
DB開発チーム
development
team

Document
preparation

RPA
RPA開発チームdevelopment
team■Improving productivity by minimizing
routine works

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

First half of
Fiscal 2022

Fiscal 2023
Plan

Horizontal expansion of proven BPR measures as crosssectional efforts on a group-wide basis
Electronic approvals

RPA automation■Horizontal expansion of proven RPA following
obtaining the license[Compared to fiscal
2017]Electronic contracts

Digitalization of application procedures
Going paperless

146 Thousand hours

Establishment and maintenanceof business infrastructureGroupware

Document
preparation

146 Thousand
Hours Reduction

50[Future] Based on changes and current situation, expanding efforts for productivity improvement to
the entire group

Centralizing common and routine
operations

200 Thousand hours

As of September 30,
2022■Sharing and effectively using resources

Consideration of sharing and reallocation of resources
within the group
Taking into account the holding company structure
and renovation of the head office, further accelerate
BPR to achieve workstyle reforms‐ 26 ‐

Cross-Sectional Efforts Supporting Business Strategies _ Branch Plan I
Next-generation Branches/Securing Co-working Space for the Bankand Group Companies

Kawanoe Branch (and Kinsei Branch) * Newly opened in July 2022

Review the locations and functions ofexisting channels

Review of Branches and ATM Locations
Numberof
Fiscal 2021
branches
Number of ATMs

<Consulting lobby>

Securing Space for Working with Group Companies and Strengthening Cooperation■ Released banking app that can provide the same
customer experience as at a counter reception
 Totally renewed design to be more intuitive Added functions including various
applications and inheritance procedures
 Gradually increasing transaction menu

■ Micro branches (branches not having account) forthe purpose of maintaining contact points with thecommunity after branch closure
Fiscal 2018 Fiscal 2019

Fiscal 2020

Fiscal 2021

First half of
Fiscal 2022

■ Eliminating excessive branches by optimizing branchlocations while maintaining points of contact withcustomers■ Reducing the number of installed ATMs against abackground of increases in convenience store ATMs andcashless settlements■ Realizing cashless processing and no filling- ■ Available until 5:00 p.m. on weekdays forout of paper slips (to save customers’ work)
various applications and consultations■ Labor-saving operations by improving■ Listening closely to customers to provide
administrative efficiency
values■ Holding seminars and consultation events

AGENT app * Released June 2021

Iyogin SMART * Released August 2021

■ Shift to Next-generation Branches with Satto Madoguchi (Quick Counter) and AGENT
system (Introduced to 102 branches)<Transaction lobby＞

New channels and efforts in line with customers’ changes
in lifestyles

Review of Branch Functions■ Shift to labor-saving branches
Branches located in government offices: 5 branches■ Review of business hours
Extension of business hours: 33 branches*Excluding account transactions
Adoption of lunch break: 11 branches<Branches>
Nakayama and Kaminada(2 branches)

Iyogin SMART plus * Released August 2022
■ Branches specialized in function of transactions to
respond to customers’ persistent needs<Branches>
Wake, Johoku, Kuwabara, and Awai
(4 branches)

Advanced Use of Branches and Environmental Friendliness<Fukuoka Branch>

To be completed
in April 2024

<Nagoya Branch>

To be completed
in July 2024

Expansion of the Group Head System■ Providing space for business meetings and consultations with customers that can also be
used by Group companies■ Securing an open seating working space that can be used both by headquarters and Group
companies■ Providing space with a large capacity to hold seminars and consultation events
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

■ Introduction of the Group Head system
Core branches (full-service banking): 26 branches
Linked branches (branches specialized in individual
services): 63 branches■ Newly establishing Matsuyama Chuo Group (August 2022)
Strengthening cooperation between Okaido (Okaido
Branch) and Gintengai (Minatomachi Branch), the central
shopping streets of Matsuyama City

■ Based on regional needs, renovating branches to include rental spaces
targeting at third parties to contribute to liveliness■ Both Fukuoka and Nagoya branches aiming to obtain ZEB Readycertification‐ 27 ‐

Cross-Sectional Efforts Supporting Business Strategies _ Branch Plan II
Overview and Issues of Current Head Office
Building Outline■ Completion<Main Building><Annex>

October 10, 1952

May 20, 1968

Overview and Concept of New Head Office Building
Outline of New Head Office Building<New main building><New annex>■ Completion

Spring 2029

Spring 2025
TAKENAKACORPORATION
To be determined■ Design

NIKKEN SEKKEI KOMU

NIKKEN SEKKEI KOMU

■ Design■ Construction

TAKENAKA CORPORATIONTAKENAKA CORPORATION■ Construction

TAKENAKACORPORATION
To be determined■ Total floor area

5,047.4m2

11,634.6m2

Steel-framed reinforced
concrete

Steel-framed reinforced
concrete■ Total floor area

Approx. 30,000m2

Approx. 13,000m2■ Structure■ Structure

Steel-framed structure

Steel-framed structure■ Number of stories 4 stories above ground<Main Building>

8 stories above ground and2 stories below ground<Annex>■ Number of stories 12 stories above ground, 11 stories above ground1 story below ground

Environmental Certification■ CASBEE(Comprehensive Assessment System for Built
Environment Efficiency)■ BELS(Building-Housing Energy-efficiency Labeling System)* Target level is under consideration

IssuesConcept
Sustainable building creating brightness and prosperity for the region
Sustainable design IYO 200“We will construct a new head office building that will contribute to the region
toward the 200th anniversary of our foundation.”

CreateWe will create an office that will activate communicationand create new value.

Connect

We will provide places such as a large hall and co-working
space where people and the community make aconnection.

SecureWe will create a solid and reliable building withearthquake-proof structure and the latest security system.

Eco-friendly

We will introduce sustainable architecture friendly topeople and the earth by actively using wood and adoptingenergy-saving technologies.

Conceptual Images of Buildings(1) Responding to aging ■70 years have passed since construction and defects haveoccurred in facilities, including air-conditioning equipment.
(2) Organizational■Headquarters organization and affiliated companies arecentralization/
dispersed in Matsushima City, which causes issues ofWork style reforms
information sharing, etc.
■Office space is too small and inappropriate as officeenvironment in the era of coexistence with COVID-19 andpost-COVID-19.
(3) Responding to BCP ■Issue of disaster resistance of the building in emergency
situations such as heavy rainfall and the Nankai Troughearthquake

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐ 28 ‐

Cross-Sectional Efforts Supporting Business Strategies _ IT Plan
Enhancement of IT governance

Development and Improvement of Data Utilization System Centralized Management of Corporate Customers’ Information of Each Group Company

 Efforts for Optimization of IT Investment

Iyogin Holdings
Aiming for optimization of IT
investment in the Group as a whole

Banking
Securities

Guarantee

Systems

CapitalLease

Think tankCredit cards

 Strengthening Cybersecurity across the Group Centralize management of system
investment and development projects
from the perspective of group-wide
optimization
 Unify processes of advance
verification and check of investment
effects for large scale investment
cases Commonalize IT infrastructure in theGroup By upgrading I-CSIRT*, an organization responding to cyberattacks, to the Holding
Company’s organization, the whole Group will develop a system to facilitate cooperation
under emergency and normal situations
Management

Emergency
OfficeI-CSIRT

Relevant authorities
PoliceFinancials ISAC
Japan
Industry
associations

Each Group
companySecurity vendor

Major Efforts of I-CSIRT System development
Build a robust system by introducing “Security
by design”
 Human resource development
Focus on developing management in charge ofstrategies for planning and direction of cybersecurity, as well as security human resources
necessary for respective divisions* CSIRT of the GroupCSIRT is a collective term of organizations which deal withmatters related to computer security.

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Contact person at each Group company
Contact records
Transaction status
Revenue status, etc. (scheduled to display) Considering introduction of a group-wide
dashboard that centralizes corporate customers’
information of each Group company including theBank Aiming for customer-oriented business operations,strengthening relation management for the entire
Group to provide optimal products and services

 Number of Persons with Capacity to Utilize Data
Analyzing Tool

 Example of Information Enhancement through
EBM*
Contract rate through EBM “Deposit of Life
Insurance Premium”

5 persons(1 dept.)

April 2011
(at the introduction)

104 persons(12 dept.)

September 2022

 Expand personnel capable of utilizing data
through training and hands-on support by
specialized departments
 Aiming to be a data-driven organization where
every department makes decision based on data

Contract rate is increasing due to model
improvement based on analysis of past
contract results
First half of Second half of
Fiscal 2019 Fiscal 2019

First half of Second half of First half of Second half of First half of
Fiscal 2020
Fiscal 2020 Fiscal 2021
Fiscal 2021
Fiscal 2022

 Contract rate is increasing owing to a change ofdelivery conditions for “Deposit of Life Insurance
Premium” in May 2021
 Aiming to enhance EBM by analysis of various data
* EBM (Event Based Marketing):
Marketing activities based on occurrence of customers’ life and financial events.
The Group uses EBM as a method to realize customer-oriented CX sales.

‐ 29 ‐

Cross-Sectional Efforts Supporting Business Strategies _ Personnel Development Plan
Improving Base Skills

Improving Special Skills

 Implementing various measures based on three key points to improve the “base skills” of each
employee(1) Personnel with an Area of Expertise

Base
Skills Human resource development in cooperation
with specialized departments
SupportRisk management

Planning

Technology

MarketShip

Individual

SpecialskillsCorporation

 Revised personnel system (October 2022) → Classify specialized skills into eight career fields

Basic operation knowledge and skills/Financeand IT literacy/Business skills/Common sense
and morals, etc.

Digital Innovator
Certification
861

Digital Business Basic
Workshop47

persons

persons

Accumulated
number of
examinees

Accumulated
number oftrainees Enhancement of short-term dispatch trainings, etc.
 Expanding the scope to Regional Vitalization Division and Shikoku Alliance Securities from fiscal 2022
 Providing for employees of 8 divisions and companies, in addition to the existing 6 divisions, an opportunity toattend training, as well as autonomously consider their own career development(2) Establishment of an Environment Which
Facilitates Autonomous Learning
Expansion of online learning tools

Making workshops online
Introduction of education andStart of shorter classes on demand
training apps for all new
employees(3) Responses to Diversifying Careers
 Introducing training programs by business(field) open to all employees
 Promotion of challenges to advanced
qualifications (Small and Medium EnterpriseManagement Consultant, MBA, 1st-grade
CFP, etc.)
 Continuation and expansion of qualificationacquisition incentive system

New initiatives
 Developed and started trial of skill
map for visualizing skills
 Formulated guides for each career
field
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

 Started trial of one-on-one meetings
to improve quality ofcommunication and ensure
opportunities

 Departments in charge play a central role in the development, and employees may bedispatched to specialized institutions, including those outside the Group, to improve special skills
and deliver greater value

 Corporation/Individual/Ship/Planning
 Dispatching employees for corporate
academy training→ Training program for young employees Dispatching employees on assignments
outside the Group→ Acquisition of external expertise Technology
 Attending cloud-related training→ Improving IT-related skills
 Skill Compass Level 3 or higher→ Improving the skills of developers

 Market Short-term dispatch training in the Funds
Operation & Securities Division
 Securities analyst certification holders→ 74 persons (As of September 2022)

 Planning (Digital Business)
 Redefine and clarify development policies→ “Starter,” “Operating Personnel,” and “High
Level Personnel”
 Conducting level-based development measures→ Basic workshop, practical training, e-learning,etc.

Strengthen human resource development andinitiatives across the Group Conduct level-based workshops for all Group companies
 Jointly conduct from April 2022
(Number of trainees at Group companies (excluding theBank): 54)
 Expanded the scope of short-term dispatch trainings toGroup companies apart from the Bank
 Added Shikoku Alliance Securities in June 2022

Establish a group-wide
development system andstrengthen initiatives

Banking
Securities

Guarantee

Systems

CapitalLease

Think tankCreditcards

Create and provide diversified value‐ 30 ‐

IndexI. Summary of Earnings for the First Half of Fiscal 2022

Bank

II. Transition to Holding Company Structure

Holding Company

III. Group Medium-Term Management Plan

Holding Company

III-1. Overview of Medium-Term Management Plan
III-2. Major Numerical Targets of Medium-Term Management Plan
III-3. Main Strategies and Progress of Medium-Term Management Plan
III-4. Efforts for Sustainability
III-5. Profit / Loss Forecasts and Capital Policy
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐ 31 ‐

Efforts for Sustainability I-1 _ Summary of Response to TCFD Recommendations
Framework of TCFD

Overview of Initiatives

Governance Established a Group Sustainability Committee operated by the Group Management Meeting and set up a reporting structure
to ensure that important matters could be appropriately and timely reported to the Board of Directors
 Expanded the scope of the “Environmental Policy” and “Policies on investments and loans for specified sectors” to Group
companies other than the Bank

Strategies[Opportunity] Established a support team for carbon neutrality measures
 Expanded the visualization service of CO2 emissions from customers through collaboration with external organization, in
addition to alliance agreements with local electricity companies
 Promoted sustainable finance initiatives such as green loans, sustainability linked loans and transition loans[Risk]
 Conducted scenario analysis of physical risks for the Bank’s corporate customers regarding risks such as an increase in credit
costs, etc., resulting from damage in collateral real estates and interruption on business caused by flood
 For migration risk, risk importance assessment was conducted on the two cores of risk assessment (impact) by sector and theBank’s portfolio composition ratio (credit amount), and the “Electricity/Gas” sector was selected. Then, we conductedscenario analysis for the sector.
 Calculated the ratio of carbon-related assets to loans and other assets mainly based on the recommended disclosure items in
the TCFD Recommendations [End of fiscal 2021: 28.1%].

Risk Management

 Added items concerning environmental friendliness (business status in consideration of climate change and environment) as
evaluation items in the “business feasibility assessment,” which the Bank has put efforts into

Benchmark and Targets

 Set a CO2 emission reduction target (combining scope 1 and 2)
50% reduction by fiscal 2030 (compared to fiscal 2013) [Fiscal 2021 results: 28.8% reduction]
 Set a sustainable finance target
Cumulated transaction amount from fiscal 2021 to fiscal 2030: ¥1,400.0 billion, including ¥700.0 billion in the environmental
area [Cumulated results: ¥151.0 billion]

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐ 32 ‐

Efforts for Sustainability I-2 _ Scenario Analysis
Physical Risks

Transition Risks

Occurrence of flood damage caused by climate change

Tightening of regulations on restrictions of carbon emissions/introduction of carbon tax

Financial impacts on
business borrowers
Direct damage

Decrease in sales
due to suspensionof operations

Damage on real-estatecollateral
Impairment ofcollateral value

Increase in credit-related expense upon occurrence of flood damage

Scenarios
AnalysistargetImpact on B/S
Increase in capital
investment related
to renewable energy

Increase inborrowings

Impact on P/L
Decrease in sales

Occurrence ofcarbon costs

Increase in credit-related expense following a transition to a decarbonized society•

RCP 2.6 Scenario (2˚C Scenario) and RCP 8.5 Scenario (4˚C Scenario) publicized by theIntergovernmental Panel on Climate Change (IPCC)

Scenarios•

Below 2˚C Scenario (2˚C Scenario) and Net Zero 2050 Scenario (1.5˚C Scenario)
publicized by the Network for Greening the Financial System (NGFS)•

The Bank’s business borrowers

Analysistarget•Electricity generation companies and gas service companies among the Bank’sbusiness borrowers (excluding renewable energy related)•

Calculate an increase in credit-related expenses in consideration of financial impacts
on business borrowers and damage on real-estate collateral upon occurrence of flood
damage and damage on real-estate collateral, as well as the probability of flood
damage for each of the climate change scenarios.

•

Analysis
methodCalculate an increase in credit-related expenses by calculating impacts of tightening of
regulations on restrictions of carbon emissions and introduction of carbon tax
following a transition to a decarbonized society on an individual company basis, andestimating future financial forecast until fiscal 2050

Analysis
methodAnalysis
period•Until 2050, based on data as of March 31, 2021

Analysis
period•Until 2050, based on data as of March 31, 2021

Analysis
result•A total of ¥4.6 billion to ¥7.5 billion increase in credit-related expense

Analysis
result••2˚C Scenario: A total of ¥0.08 billion increase in credit-related expense
1.5˚C Scenario: A total of ¥2.6 billion increase in credit-related expense

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐ 33 ‐

Efforts for Sustainability II
Sustainable Finance

Cumulated transaction amount of sustainablefinance (Hundreds of millions of Yen) Supporting customers’ efforts toward sustainable management, which is of increasing social interest
Sustainable Finance and Green Bonds

Sustainable finance

Sustainable Finance Executed(Of which, the environmental area)—Financial support for customers’ sustainable management sophistication —  Cumulated transaction amount from fiscal 2021:
Green loans

Transition loans

Sustainability linked loans

Green bonds¥ 151.0 billion (including ¥96.6 billion in the environmental area)

Transaction amount in the first half of Fiscal 2022:¥58.3 billion(including ¥35.7 billion in the environmental area)

 Key sustainable finance projects

Positive impact finance

Renewable energy businesses related¥54.9 billion

Sustainable finance and green bonds¥14.6 billion

Private placement bonds (environmental private placement¥18.9 billion
bonds and SDGs private placement bonds, etc.)

Fiscal 2021

First half of
Fiscal 2022

Fiscal 2023

 Started handling positive impact finance in July 2022

✔ Entered into agreement for the first case with the Educational Corporation SAIBI Gakuen→ Iyo Bank comprehensively analyzes and evaluates the environmental, social, and economic
impact of customers’ corporate activities and supports their initiatives to increase positive
impact and reduce negative impact→ Utilized the framework of positive impact finance for construction of a new school building
for SAIBI High School

Support customers to refine theirsustainable management
We received a second opinion on the compliance of Iyo Bank’s positive impact finance with the
PIF Principles* from Rating and Investment Information, Inc.

*Established in 2017 as principles for financial institutions to proactively make investments and loans with the aim of achieving
sustainability
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐ 34 ‐

Efforts for Sustainability III
Revitalization of the Region by Business Foundation Support

The First in Japan! Sustainable Tourism Business Utilizing Farmed Tuna
 Tourism and fishery operators are working together and demonstrating trials of “Pole-and-Line Tuna Fishing Tour”
with subsidies from the Japan Tourism Agency.

Number of Business Foundation Support
March 2021

March 2022

September 2022

Business foundation planning support

366

352

202

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

301

217

105

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

17

19

9

Of which, venture companies registered for grants
or investments

24

18

1

*Businesses within 3 years of establishment are counted

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

Revitalization of Local Economy by Crowdfunding[Number by category][Number (cumulative)]

Businessfoundation

Regional
revitalization

Total
72
New products
and services

Second halfof 2018First halfof 2019

Second half First halfof 2020of 2019

Second half First halfof 2021of 2020

Second half First halfof 2022of 2021

 The Bank subsidizes part of the fees paid by customers to crowdfunding companies tosupport projects on starting business and regional revitalization in Ehime Prefecture
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

 Purpose Creation of profitable local signature products Integrated support from creation of contents to development of sales channels utilizing local tourism
resources
 Revitalization of primary industry and tourism industry

Uwajima Project

ANA Akindo, etc.

Iyo Bank

Pole-and-line fishingchallenge by ANA cabin crew

 Overview of initiative Commercialization of “Uwajima Farmed Tuna Pole-and-Line Fishing Tour”
 “Live Streaming Tour: Tuna Cutting Demonstration by a young female professional” and sales oftuna products through e-commerce Local production and consumption of Uwajima farmed tuna at local accommodation facilities in theprefecture

Young female professional
cutting up a whole tuna

Collaboration with Two National Institutes of Technology in Ehime Prefecture for Regional Revitalization
 Entered into “Collaboration Agreement on Regional Revitalization and Manufacturing Support”
 Raise awareness of local companies among students of national institutes of technology to lead toan increase in the rate of finding jobs in the prefecture Activate collaboration with students and professors of national institutes of technology to create
value and discover start-up cases
National Institute of Technology,
Niihama College
National Institute of Technology,
Yuge College

Iyo Bank Overview of collaboration
 Exchange of information and support through promoting industry-academia-government
collaboration
 Collaboration to solve regional issues and revitalize the region
 Support for manufacturing and human resource exchange and development‐ 35 ‐

Efforts for Sustainability IV
Diversity

Health Management

Review of Personnel System (October 2022)
New generalist
career track

Re-employment
age limit
70 years old

Specified
Generalist
generalist
career track
career track 65 years old

Reviewed re-employment system forresigned employees
Introduced a referral
recruitment system Integrated generalist career track and specified generalist career track into
new generalist career track→Creating an environment in which employees can work actively regardless ofcourses, gender, etc.
 New generalist career track enables employees to decide whether to transfer→Aiming for a system that makes it easier for employees to balance work andprivate life without give up promotions
 Raised the re-employment age limit of senior employees from 65 to 70→Creating more fulfilling lives and work as well as opportunities for seniors tostay active
 Reviewed the re-employment system for resigned employees and abolishedrequirements for period of separation from employment, etc. to allow themto return immediately as the Bank’s employees after resignation
 Introduced a referral recruitment system to ensure diverse recruitment
measures Providing health checkups, lending out wearable devices and introducing health management system at the Iyo Bank

Recognized in the Certified Health &Productivity Management Outstanding
Organizations Recognition Program for five
years consecutively
 Developed a Health Management Strategy Map to systematically organize the past health management
initiatives.

Work Style Reforms
 Continued to implement the “Smart Working Challenge,” an initiative for work style reforms at the Iyo Bank

18.0
hours

Use of Birth Name in Business Employees can continue to use their birth name in business even if they have changed their family name in the Japanesefamily register after marriage, etc.

Female Manager Ratio/Average Years of Service

January to
December 2015

6.6
hours
January to
December 2018

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

March 2021

March 2022

January to
December 2021

73.3％

12 years and 11 months
12 years and 4 months
11 years and 8 months

4.4
hours

 Working-hour interval system
 Face-to-face guidance for employees working for long hours
Overtime working hours under Labor Standards
Act are decreasing■ Change in Paid Leave Utilization Rate Results at the Iyo Bank
→ Increasing steadily year after year

March 2020

Strategy Map

 Complete flexible working hour system Ensure full salary and bonus during parental leave after birth Employees can also work during leave from the perspective of promoting flexible work styles

 Established the health management declaration and implemented measures such as subsidizing costs for health checkups
and granting special leave, based on the understanding that the corporate sustainable growth is supported by humanresources[Results at the Iyo Bank]■ Changes in Overtime Working Hours under Labor Standards Act

Expanded Support System for Employees Who Raise Children while Working

 Continued to achieve 100% of the childcare leave utilization rate for men and women since fiscal 2016
 Newly established parental leave after birth in October 2022 as a more flexible and accessible system
to allow employees to take up to 4 weeks of leave within 8 weeks after childbirth

Maintain and Increase Employees’ Health Employees are encouraged to use at least 11 days ofleave per year
Paid leave utilization rate is increasing

January to
December 2015

January to
December 2018

January to
December 2021

‐ 36 ‐

Efforts for Sustainability V
Environmental Protection

Contribution to Local Communities

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.

Iyo Bank Environment
Foundation “Evergreen”(public trust)

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 ¥65
million to 179 recipients.

Fiscal 2021 “Tada Eco-group Tanpopo”
Iyo Bank Evergreen Forest (Matsuyama City)

Diversity

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

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Iyo Bank Regional Cultural
Activity Assistance Program

Started in 2007

SDGs Card Game

Established in 1976

Established in 1992
Applications are invited twice a year from Juneto July and from December to January
We grant part of funds for
activities of parties whichcarry out “grassroots”
cultural activities in Ehimeand granted a total of ¥250
million to 1,296
organizations. In addition,“special applications”
targeting organizations
damaged by the heavy rain
61st recipient “Dozen Daiko LA-BANTA”
in July 2018 are also invited.

Iyogin Financial
Education Class

Iyogin Challenge & Smile

Iyo Bank Social Welfare Fund
(Public Interest Incorporated
Foundation)

Granting scholarships to highschool students in single or noparent families

Employment subsidies forchildren living in child welfare
institutions, etc.

Iyo Bank Social Welfare Fund
(Public Interest Incorporated Foundation)
Donation of social welfare
equipment to social welfare
institutions, etc.

Donation of subsidies for buying
books to high schools, etc.

YouTube Videos
Iyogin is
supportingchildrenPublishing videos on themes suchas lowering the age of adulthoodand banking operations

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.

We support improvement in social welfare and humanresource development for the next generation in Ehime

Seminars for kids
Seminars for learning about bankmechanisms and healthyfinancial literacy

Iyogin Junior
Mirai Juku

Lesson program in line withschool curriculum guidelines
and financial literacy map‐ 37 ‐

IndexI. Summary of Earnings for the First Half of Fiscal 2022

Bank

II. Transition to Holding Company Structure

Holding Company

III. Group Medium-Term Management Plan

Holding Company

III-1. Overview of Medium-Term Management Plan
III-2. Major Numerical Targets of Medium-Term Management Plan
III-3. Main Strategies and Progress of Medium-Term Management Plan
III-4. Efforts for Sustainability
III-5. Profit / Loss Forecasts and Capital Policy
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐ 38 ‐

Profit / Loss Forecasts for Fiscal 2022
 Despite interest and dividend income increasing, core business gross profit is projected to be ¥87.0 billion, a decrease of ¥3.4 billion year on year due to adecrease in non-interest and dividend income
 Profit attributable to owners of parent is forecasted to continue at a high level at ¥28.0 billion due to a significant decrease in credit costs at the Bank
(Units: Billions of yen)

[Holding Company Consolidated]* Fiscal 2021 results are on a consolidated
basis at the Bank level

Fiscal 2021 results
Intermediate
results

Intermediate
forecast

Factors Contributing to Increase / Decreasein Consolidated Core Business Gross Profit (Fiscal 2022 - Fiscal 2021)

Fiscal 2022 forecast
YoY

YoY

Core business gross profit

44.9

90.4

44.9

+0.0

87.0

(3.4)

Of which, interest and dividend income

37.0

72.6

37.7

+0.7

74.0

+1.4

Of which, non-interest and dividend
income

7.9

17.7

7.2

(0.7)

13.0

(4.7)

Expenses (-)

25.5

51.6

26.1

+0.6

52.5

+0.9

Core business net income

19.4

38.8

18.8

(0.6)

34.5

(4.3)

Credit costs (-)

3.9

4.3

(0.7)

(4.6)

(3.5)

(7.8)

Gain (loss) related to securities

3.9

1.1

7.5

+3.6

0.0

(1.1)

Ordinary income

21.1

38.2

28.9

+7.8

41.0

+2.8

Profit attributable to owners of parent

14.8

26.4

19.8

+5.0

28.0

+1.6

Fiscal 2021 results〔参考：銀行単体（単位：億[Reference:
Bank Nonconsolidated] Inter円）〕
mediateresults

Intermediate
forecast

Fiscal 2022 forecast
YoY

YoY

Core business gross profit

41.8

84.5

42.2

+0.4

82.0

(2.5)

Expenses (-)

24.3

49.0

24.8

+0.5

50.0

+1.0

Core business net income

17.5

35.4

17.3

(0.2)

32.0

(3.4)

Ordinary income

19.7

35.2

27.3

+7.6

38.5

+3.3

Net income

14.0

24.6

19.1

+5.1

26.5

+1.9

Copyright © 2022 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

Core businessgross profit(¥87.0 billion)

Gain on loan
management(¥52.4 billion)+4.2

Interest anddividend income(¥74.0 billion)

Gain on securities
management(¥20.0 billion)

+1.4

(3.5)

(Units: Billions of yen)

Volume factors +2.4
(Average loan balance up ¥192.9
billion)Yield difference factors +1.8
(Yield difference up 0.03%)
Volume factors (3.1)(Average loan balance down
¥186.3 billion)
Yield difference factors +0.0
Gain on fund cancellation
factors (0.4)

(3.4)

Other
(¥1.5 billion)
Fees andcommissions(¥9.5 billion)

+0.7

+0.1

… Increase in solution-related fees, etc.

Other(¥3.5 billion)(4.8)… Decrease in gain (loss) on foreign exchange transactions andgain (loss) on derivatives, etc.

‐ 39 ‐

Capital Policy II _ Ensuring Soundness
Status of Integrated Risk Management (September 30, 2022)(Hundreds ofMillions of Yen)

Capital level to be secured by the Group

Economic Capital Basis

ストレステストStress test

CET 1 ratio 15% level
CET 1 ratio 14.5% level

Expectedbalance
残高予想

Evaluation Gain
BufferAdditional
required capitalMarket risk

Operational risk

Credit risk

Credit risk

Risk limit

Risk amount(September 30, 2022)[Issues in integrated risk management]
・Insufficient quantification of industrial concentration risk
・Limitations of measuring risk amount by VaR・Aggressive market risk-taking to ensure profitability
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Securities
有価証券

CET 1 ratio 8% level

Regulatory
required capital

Estimation of credit costs, impairment loss and
信用コスト・有価証券減損・評価損益/リスクアセット試算
evaluation
gain (loss) on securities/risk-weighted assets

Equityratio forecast after stress (Interim perspective)
ストレス後の予想自己資本比率（中期的な視点）

Market risk

Risk capital(¥666.2 billion)

Overseas ocean
外航海運業
transport
industry

Stress scenarios in macroeconomic and financial
マクロ経済・金融環境のストレスシナリオ
environment

Operational risk
Common stock ,etc.
Tier 1(excluding
evaluation
gain)

Corporations
事業法人

Required capital(Regulatory capital basis)[Changes in the economic and financial environment amid
the COVID-19 pandemic]
・Support for revitalization of the stagnant local economy
・Active support for ship finance for maritime businesses,
one of the local industries
・Unexpected increase in market and price volatility

Need to calculaterequired equity inline withcharacteristics ofthe Group’s
portfolio

Considerwhether steady equity ratio can be
一定の自己資本比率が維持可能かどうか検証
maintained

Calculate additional required capital to be
secured by the Group‐ 40 ‐

Capital Policy II _ Cross-Shareholdings/Dividend/Shareholder Return Policy
Cross-Shareholdings

Dividend and Shareholder Return Policy■ Basic policy and response status of dividend and shareholder return policy■ Basic policy and response status of cross-shareholdings
Basic
policyReduce→ The Board of Directors verifies the rationality of holding atleast once a year

Policy on holding is set through the evaluation matrix of “investment side” and “policy side”
for all stocks held. Shares which are earmarked for divestment are being sold off in stages.
(Hundreds ofMillions of Yen)

[Changesin the book value of cross-shareholdings (listed)]［政策保有（上場）株式簿価残高推移］

March
2017

March
2018

March
2019

March
2020

March
2021

March
2022

March
2023

March
2024

* Tier 1 excludes components ofcomprehensive income

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Maintenance of long-term and stable dividends

Dividends for the fiscal year ending March 2023 are planned to be ¥16 per annum*
Purchase of treasury stock¥3.0 billion
May to July 2022
Ordinary
dividend

Tier 1 ratio*(right axis)

March
2016

Basic
policy

March
2011

March
2012

Commemorative
dividend

March
2013

March
2014

March
2015

March
2016

March
2017

March
2018

March
2019

March
2020

March
2021

March March 2023
2022
(Plan)*Following the establishment of Iyogin Holdings on October 3, 2022, an interim dividend of ¥8 per share paid by the Iyo
Bank is included in total dividends for the fiscal year ending March 31, 2023

‐ 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> Takeda, General Planning Division, Iyogin Holdings TEL:089-907-1034/FAX:089-946-9104

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Iyogin Holdings First Half of Fiscal 2022
Earnings Briefing(April 1, 2022 – September 30, 2022)

Reference Materials

Iyogin Holdings
December 2, 2022
Copyright © 2022 Iyogin Holdings,Inc. All Rights 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◎Branch 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

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‐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
3,061 employees (excluding temporary staff)

Iyo Bank: 151 domestic (including 24 branches within branches, 9 sub-branches), 1 overseas (Singapore),
2 overseas representative offices (Shanghai, Hong Kong)
Iyogin Leasing: 11 domestic
Shikoku Alliance Securities: 6 domestic〈As of October 3, 2022〉

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐2‐

List of Group Companies
14 consolidated
subsidiaries

Iyogin Holdings, Inc. (holding company)

Banking business

Iyo Bank, Ltd.

Deposit business, lending business, securities investment
business, exchange businessIyogin Business Service Company
LimitedCash organization and inspection business, maintenanceand management business of automated cash 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

2 consolidated
subsidiaries

Iyogin Computer Service
Company Limited
Shikoku Alliance Securities Co.,Ltd.

(As of October 3, 2022)

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Lease business, etc.
Consigned information processing business, softwaredevelopment business, etc.
Securities business* Apart from the above, the Group has 2 non-consolidated non-equity
method subsidiaries and 4 non-equity method affiliates.

‐3‐

Branch 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: 119 branches
Shikoku Alliance Securities: 6 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

151 domestic, 1 overseas, 2 overseas representative offices(of which, Iyogin SMART: 2 branches)(of which, Iyogin SMARTplus: 4 branches)(of which, branches within branches: 24 branches)
Number of branches of
Iyogin Leasing
11 domestic

Copyright © 2022 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
6 domestic‐4‐

Main Industries in Ehime Prefecture■ Industries with top national share concentrated in each region■ Manufactured product shipments from Ehime Prefecture totaled¥4.3 trillion (45% of Shikoku) in 2019

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 (2019)¥53.6 billion shipped in Japan…Total national share of Ehime Prefecture

Matsuyama Region

61.5%(¥32.9 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
13.4%(¥58.6 billion)

No. 1 in Japan(Note 2)

Sea culture industry (2020)¥436.8 billion total national
production

Niihama Region
Manufactured product shipments (2019)¥1,644.7 billion

Approx. 38.2% 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 © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Uma (Shikokuchuo) Region
7.4%(¥570.2 billion)

No. 2 in Japan(Note 2)

Pulp and paper industry (2019)¥7,687.9 billion shipped in Japan

Source: Prepared based on the Ministry of Economy, Trade and Industry’s “Census of Manufacture 2020” (2019 results) andthe Ministry of Agriculture, Forestry and Fisheries’ “total fishery output for 2020.”‐5‐

Manufacturing Industry in Ehime Prefecture■Ehime Prefecture has manufacturing industries distinctive to each region
Composition of manufactured goods
shipment by city (top five cities)

Production machinery

Others

22.7％

20.1％

Transportation
machinery

Coal and oil

4.8％

Food products

Matsuyama¥440.4 billion

12.6％

Others61.3％

Imabari¥1,054.0 billion

29.9％

Chemicals

Fibers 4.3％

20.2％

Food products 2.4％

General-purpose
machinery

General-purpose machinery 1.2％

19.7％

Metals 0.8％

Food products 3.1％
Fibers 3.5％

Electric
machinery

3.0％
OthersBeverages, tobacco,and feed

Generalpurpose
machinery

16.8％

Saijo
¥794.7 billion

Transportation
machinery

Others

10.2％
Plastics
Nonferrous
metal

7.5％

6.3％

8.2％

Nonferrous metal

46.3％

Plastics

8.9％

Niihama¥850.0 billion

42.3％

Production machinery

8.5％

Steel

13.8％

Chemicals

28.0％

Source: Prepared by Iyogin Regional Economy Research Center, Inc. (IRC) based on the Ministry of Economy, Trade and Industry’s “Census of Manufacture 2020” (2019 results).
Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

Others 3.3％

Production machinery 3.8％

7.3％

Shikokuchuo¥669.1 billion

Pulp, paper, andpaper processing

79.0％

‐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 © 2022 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 2020

Number of offi ces
Tota l a rea (Geos pa ti a l
Number of empl oyees
Informa ti on Authori ty of (Pri va te s ector, excl udi ng (Pri va te s ector, excl udi ng
publ i c s ector)
Ja pa n)publ i c s ector)
Jul y 2022
2

(Pers ons )(km )Prefecture tota lproducti on(Nomi na l )Prefectura l gros s productgrowth ra te(Rea l )Prefectura l i ncome perca pi ta

2021

2021

Fi s ca l 2019

Fi s ca l 2019

Fi s ca l 2019

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

Ehi meKa ga wa

1,334,841
950,244

5,676
1,877

59,021

563,282435,625

5,148.3
4,008.7

(0.6)
0.7

2,717
3,021

Tokus hi ma
Kochi

719,559
691,527

4,147
7,103

33,794

304,672
275,520

3,222.4
2,464.6

(0.1)
(1.0)

3,153
2,663

Oi ta
Fukuoka

1,123,852
5,135,214

6,341
4,988

205,965473,6902,294,657

4,525.1
19,942.4

(2.7)
(1.0)

2,695
2,838

Ya ma guchi

1,342,059

6,113

Hi ros hi ma
Oka ya ma

2,799,702
1,888,432
15,985,430

55,759120,069
77,428679,340

571,2026,350.5

(2.1)

3,249

8,479
7,115
51,8401,293,541
835,270
7,047,459

11,969.1
7,842.5
65,473.6

(2.6)
(1.7)

3,153
2,794

13.7%
8,401
60,241
15.9%

13.4%
199,966
879,306
17.3%

12.3%
2,194,727
9,242,186
16.1%

11.3%
22,195.2
87,668.8
15.1%

(0.2)

3,038

Tota l of the ten prefectures (B)(B)/(C)12.7%
5,465,002
21,450,432
17.0%

Na ti ona l Tota l (C)126,146,099

377,973

5,078,617

57,457,856

556,303.7

(1.3)

3,344

Total of the above nine prefectures (A)(A)/(C)
Hyogo

Total of ten
prefectures
17.0%

Total population(Population
estimate)(October 2020)

44,52832,83949,937

Total of nine prefectures(excluding Hyogo)
12.7%

Total population(Population
estimate)(October 2020)

Total of ten
prefectures
15.1%

Gross prefectural
product(Nominal)(Fiscal 2019)

Total of nine prefectures(excluding Hyogo)
11.3%

Gross prefectural
product(Nominal)(Fiscal 2019)

Source: Prepared based on the Statistics Bureau of Japan’s “2020 Population Census,” 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 “2021 Economic Census for Business Activity (preliminary figures),” websites of each prefecture, and Cabinet Office’s “Annual Report on National Accounts”
Copyright © 2022 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 os ta rts(a nnua l a vera ge)

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

2019

2016

2016

2020

2021

2021

2021

(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

4,308,818
2,711,583
1,908,126

2,511,264
2,619,010
904,487

1,528,554
1,169,352
757,121

94.2
92.5
95.1

8,069
5,718
3,044

1.28
1.36
1.19

2.0
2.4
2.5

Kochi
Oi ta
Fukuoka
Ya ma guchi
Hi ros hi ma
Oka ya ma

874,256
1,344,689
16,970,699
1,641,957
9,166,762
3,543,971
39,577,095

753,371
1,235,257
5,864,032
1,488,895
3,309,726
2,093,111
18,199,419

93.0
Unpubl i s hed
Unpubl i s hed
92.2
89.4
92.8

2,790
6,260
40,298
7,832
17,80911,316103,136

1.08
1.16
1.06
1.33
1.32
1.39

2.5
2.2
3.0
2.0
2.4
2.3

Total of the above nine prefectures (A)585,527
4,298,945
9,912,191
6,553,479
9,741,531
7,704,136
47,724,336(A)/(C)
Hyogo

14.8%
16,263,313

9.1%
10,219,241

12.5%
5,726,476

0.93

2.8

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

63,987,649
19.8%

49,796,336
11.4%

23,925,895
16.5%

Na ti ona l Tota l (C)322,533,418

436,522,525

145,103,822

1.13

2.8

Total of ten
prefectures
19.8%

Manufactured
product
shipments(2019)

Total of nine prefectures(excluding Hyogo)
14.8%

Manufactured
product
shipments(2019)

12.0%
30,28494.0

133,42015.6%
90.6

856,484

Total of ten
prefectures
15.6%

Number of new
housing starts(2021)

Total of nine prefectures(excluding Hyogo)
12.0%

Number of new
housing starts(2021)

Source: Prepared based on the Ministry of Economy, Trade and Industry’s “Census of Manufacture”, the Ministry of Internal Affairs and Communications’ and Ministry of Economy, Trade and Industry’s “Economic Census,” each prefecture’s materials, theMinistry 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 © 2022 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

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‐ 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
Maximum value
11,793（May 2008）

Growth rate of cargo movement
Growth rate of shipping tonnage

1,760(September 30, 2022)

Minimum value 290（February 2016）

Source: ”Clarkson Research Shipping Review & Outlook” (Autumn 2022)”(Plan)(Plan)■ Dry bulk transport demand and supply■ Future market out* Unit transport volume: Also called ton-mile. Indicates the tonnage and mileage of cargo transported
and is an indicator to measure actual demand for ships.

●In 2022, although the market is depressed in comparison with 2021 which was a boom
period, the market level, especially for small-sized vessels, remains historically favorable.
This is mainly due to the fact that certain container cargo continues to be transported bybulk carriers.
●In 2023, supply and demand are expected to remain steady in the market, as shown on theleft. However, the market could be entering into an adjustment phase triggered by adecline in transport volumes beyond the current forecast, mainly due to economic
downturn in China, the largest exporting nation of dry cargo, and an intensifying global
economic slowdown.

● Shipping tonnage of dry bulk vessels for 2022 is expected to increase by 2.8% (up 261
thousand DWT) from 2021. However, the unit transport volume* is expected to increaseby only 0.5% due to a decrease in shipment volume of grains, etc. resulting from thesituation between Russia and Ukraine.
●Because it is expected that the unit transport volume will increase but the increase inshipping tonnage will be limited in 2023, concerns over a significant decline in transportdemand are considered low at present.

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‐ 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
September 2018
Total Loans
General loans(Units: Billions of yen)

Ma rch 2019

September 2019

Ma rch 2020

September 2020

Ma rch 2021

September 2021

Ma rch 2022

September 2022

Vs. September 2021

4,431.5

4,550.8

4,617.5

4,756.6

4,874.5

4,999.3

4,959.1

5,068.8

5,257.4

298.3

4,192.2

4,310.7

4,387.7

4,522.2

4,648.1

4,783.6

4,752.4

4,870.3

5,062.0

309.6

Corporate loans (incl. overseas, etc.)

3,146.0

3,238.2

3,291.1

3,397.9

3,507.7

3,624.6

3,586.1

3,696.2

3,887.7

301.6

Corporate loans (domestic branches)

3,060.4

3,135.8

3,158.3

3,248.8

3,347.1

3,434.9

3,387.6

3,479.8

3,653.1

265.5

Individual financing

1,046.2

1,072.4

1,096.5

1,124.3

1,140.3

1,158.9

1,166.3

1,174.0

1,174.3

8.0

Housing loans

758.2

781.0

805.3

831.8

852.6

870.7

879.6

885.5

886.6

7.0

Apartment and building loans

198.0

202.2

203.1

205.2

205.2

205.7

206.2

208.8

209.6

3.4

Card Loans, etc.

29.1

28.3

27.9

26.9

24.5

23.6

22.9

21.9

21.6

(1.3)

239.2

240.1

229.7

234.3

226.4

215.6

206.6

198.5

195.3

(11.3)

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 2018

Ma rch 2019

September 2019

(Units: Billions of yen)

Ma rch 2020

September 2020

Ma rch 2021

September 2021

Ma rch 2022

September 2022

Vs. September 2021

Total Deposits, etc. + assets in custody A

5,894.2

6,070.6

6,174.5

6,094.1

6,532.5

6,870.9

6,956.9

7,015.2

7,027.4

70.5

Total Deposits, etc.

5,542.2

5,712.6

5,817.3

5,754.3

6,184.6

6,522.6

6,603.0

6,654.1

6,669.7

66.7
143.6

Total deposits

5,057.7

5,247.1

5,288.5

5,265.6

5,652.6

5,983.1

5,956.2

6,041.8

6,099.8

Individual

3,412.0

3,423.6

3,450.2

3,512.5

3,652.2

3,740.7

3,794.03,850.8

3,889.9

95.9

General companies

1,455.4

1,555.4

1,553.7

1,564.4

1,733.5

1,853.4

1,857.9

1,915.1

1,949.8

91.9

Public

111.4

126.4

113.2

119.8

112.7

162.8

114.0

141.7

118.9

4.9

Financial

37.4

61.0

31.9

40.8

32.7

43.4

30.6

45.2

30.4

(0.2)

41.3

80.5

139.4

28.0

121.3

182.6

159.5

88.8

110.6

(48.9)

484.4

465.5

528.8

488.7

531.9

539.4

646.8

612.2

569.9

(76.9)

Overseas / offshore
NCD
General companies

345.1

348.2

390.0

367.0

384.9

427.4

476.2

445.0

385.6

(90.6)

Public

139.2

117.3

138.7

121.7

147.0

112.0

170.6

167.0

184.1

13.5

1,800.6

1,903.6

1,943.8

1,931.4

2,118.5

2,280.8

2,334.1

2,360.2

2,335.5

1.4

Public funds (incl. NCD)

250.7

243.7

252.0

241.5

259.8

274.9

284.6

308.8

303.0

18.4

Foreign currency deposits (balance)

111.0

111.0

101.6

89.3

96.3

99.0

116.0

133.1

138.6

22.6

General company funds (incl. NCD)

Individual deposits + individual assets in custody
Individual deposits

3,751.4

3,769.1

3,795.6

3,841.4

3,988.5

4,078.3

4,137.4

4,201.0

4,236.7

99.3

3,412.0

3,423.6

3,450.2

3,512.5

3,652.2

3,740.7

3,794.03,850.8

3,889.9

95.9

339.3

345.4

345.4

328.8

336.3

337.6

343.4

350.1

346.8

3.4

351.9

357.9

357.1

339.7

347.8

348.3

353.9

361.1

357.7

3.8

24.0

22.4

20.3

19.8

19.9

19.2

20.0

21.3

23.9

3.9

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

71.5

68.6

66.7

53.8

58.7

61.6

64.0

67.8

64.4

0.4

Single premium polocies

210.8

215.7

216.4

214.2

211.3

208.7

207.2

205.4

203.6

(3.6)

Financial product intermidiary

45.5

51.0

53.6

51.7

57.7

58.6

62.5

66.4

65.6

3.1

Shikoku Alliance Securities balance C

208.3

199.5

207.8

202.4

226.6

245.2

246.3

246.0

254.2

7.9

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

560.3

557.4

565.0

542.2

574.5

593.5

600.2

607.1

611.9

11.7

9.2%

8.9%

8.9%

8.6%

8.5%

8.3%

8.3%

8.4%

8.4%

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

Copyright © 2022 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
September 2017

September 2018

Composition

September 2019

Composition

September 2020

Composition

September 2021

Composition

September 2022

Composition(Uni ts : Bi l l i ons of Yen, %)Vs. September 2021

Composition

Balance

Rate of balance
increase/decreas

Manufacturing

589.4

14.4

629.8

14.5

646.9

14.4

671.7

14.2

652.5

13.7

653.9

13.0

1.4

0.2%

Agricultural

2.5

0.1

2.8

0.1

2.8

0.1

2.9

0.1

2.8

0.1

2.8

0.1

0.0

0.0%

Forestry

0.2

0.0

0.2

0.0

0.3

0.0

0.4

0.0

0.4

0.0

0.4

0.0

0.0

0.0%

Fishing

12.3

0.3

11.1

0.3

11.2

0.2

9.8

0.2

8.1

0.2

6.8

0.1

(1.3)

(16.0%)

Mining

8.9

0.2

8.5

0.2

8.1

0.2

6.8

0.1

6.4

0.1

4.2

0.1

(2.2)

(34.4%)

105.0

2.6

111.2

2.6

108.9

2.4

126.4

2.7

127.7

2.7

138.7

2.8

11.0

8.6%

Electricity, gas, heat provision, water

97.5

2.4

122.5

2.8

141.3

3.2

167.4

3.6

197.4

4.1

207.8

4.1

10.4

5.3%

Information communications

28.5

0.7

21.7

0.5

20.0

0.4

17.8

0.4

18.2

0.4

17.9

0.4

(0.3)

(1.6%)

Transportation

649.2

15.8

703.3

16.2

728.8

16.3

801.6

17.0

847.5

17.8

1,030.6

20.5

183.1

21.6%

526.6

12.8

566.5

13.0

593.6

13.2

666.0

14.1

716.6

15.1

904.3

18.0

187.7

26.2%

Wholesale and retail

465.4

11.3

500.3

11.5

499.5

11.1

509.9

10.8

510.1

10.7

530.8

10.6

20.7

4.1%

Finance and insurance

198.7

4.8

208.9

4.8

190.1

4.2

181.3

3.8

170.0

3.6

201.8

4.0

31.8

18.7%

Real estate

238.4

5.8

259.0

6.0

284.1

6.3

312.2

6.6

311.7

6.5

313.6

6.2

1.9

0.6%

Various services

426.2

10.4

425.5

9.8

459.2

10.2

483.4

10.3

483.4

10.2

479.5

9.5

(3.9)

(0.8%)

187.6

4.6

191.5

4.4

194.2

4.3

205.0

4.3

207.6

4.4

204.4

4.1

(3.2)

(1.5%)

232.6

5.7

233.9

5.4

224.4

5.0

222.1

4.7

203.6

4.3

194.6

3.9

(9.0)

(4.4%)

1,049.7

25.6

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

18.5

1.5%

4,105.0

100.0

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

262.2

5.5%

Construction

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, 2022, excluding “goods rental,” was ¥296.1 billion, which is an increase of ¥3.1 billion (+1.1%) compared with the six months ended September
30, 2021. In addition, “other” includes “home renting by individuals” (¥218.0 billion for the six months ended September 30, 2022).
* 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 22 of the Earnings Briefing.
Copyright © 2022 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, 2022

Lower row: Credit amount(Hundreds of millions of yen)

Borrowers
requiringclose monitoring

Normalborrowers

Total

Borrowers under
Borrowers atstrict observation risk of bankruptcy

Substantiallybankrupt
borrowers

Rate ofdegradation to atrisk of bankruptcy
or below

Bankrupt
borrowers

Improvement

Degradation

18,77917,27916,697

529

21

20

9

3

0.17%

582

36,10936,95536,140

772

29

14

1

1

0.04%

816

Borrowers requiring closemonitoring

2,329

2,211

541

1,546

19

103

2

0

4.51%

541

124

4,082

3,813

1,088

2,557

28

139

1

0

3.42%

1,088

167

Borrowers understrict observation

139

127

13

15

82

13

3

1

12.23%

28

17

315

294

17

15

234

27

0

0

8.67%

32

27

Borrowers
at risk of bankruptcy

385

360

22

31

7

295

3

2

60

5

565

513

11

30

13

456

1

1

55

2

Substantiallybankrupt borrowers

69

46

0

0

0

0

46

0

0

0

12

8

0

0

0

0

8

0

0

0

23

7

0

0

0

0

0

7

0

4

1

0

0

0

0

0

1

0

21,724

20,03017,273

2,121

129

431

63

13

629

728

41,08841,58437,256

3,374

304

636

11

2

1,175

1,012

Normal borrowers

September 30, 2021

Bankrupt borrowers
Total(Note 1) The chart displays the changes in the borrower classification from September 30, 2021 to September 30, 2022.
(Note 2) The balances after changes are the balances after write-offs as of September 30, 2022.

Copyright © 2022 Iyogin Holdings,Inc. All Rights Reserved.

‐ 14 ‐

Management by Risk Category: Securities Investment(Uni ts : Bi l l i ons of Yen)

Six months ended September 30, 2022
Risk Category(*1)

Source of main revenue and profit

Evaluation
gain / loss

MarketbalanceYen-denominated bonds

498.4

+6.1

504.5

32.1%

+1.4%

0.6

1.7

1.7

0.0

(0.0)

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

Of which, JGBs

96.0

+5.6

101.7

6.5%

+0.6%

1.9

0.6

0.6

0.0

0.0

1.2

80.2

+3.5

83.8

5.3%

+0.5%

1.9

0.5

0.5

0.0

0.0

1.5 Ri s e i n expected i nfl a ti on ra te

Foreign currency bonds (with hedges)

281.0(15.3)

265.7

16.9%

(3.7%)(22.2)

0.1

2.6

2.5

(12.7)(9.6) Difference in long and short term interest on overseas interest

Foreign currency bonds (without hedges)

285.6

+7.2

292.8

18.7%

+0.9%

12.5

3.6

3.6

0.0

16.1

(7.2) Ga i n on forei gn excha nge /i nteres t revenue

Domestic and overseas stocks (incl. stock trusts)

143.2+231.9

375.1

23.9%

+1.8%

4.2

4.2

4.2

0.0

1.3

(1.3) Growth in domestic/foreign companies centered on transaction partners

Alternatives

117.6

+14.3

131.8

8.4%

(0.3%)

(5.0)

1.6

1.6

0.0

1.7

(8.2)

Hedge funds

30.3

(3.1)

27.2

1.7%

(0.0%)

(2.3)

(0.0)

0.0

0.0

0.0

(2.3) Strategic diversification by external consigned management

Real estate-related

74.7

+16.8

91.5

5.8%

(0.3%)

(2.6)

1.5

1.5

0.0

1.7

(5.8) Revenue from real estate rentals and profit from price increase

Private equity

7.6

+0.0

7.7

0.5%

+0.0%

(0.1)

(0.1)

(0.1)

0.0

0.0

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

Emerging stocks

4.9

+0.5

5.4

0.3%

+0.0%

(0.0)

0.1

0.1

0.0

0.0

(0.1) Growth a nd forei gn excha nge ga i ns i n emergi ng ma rkets

1,325.7+244.1

1,569.9

100.0%

-

(9.9)

11.2

13.7

2.5

6.4

(27.4)Of which, inflation-indexed JGBs

Total

Composition Vs. March2022

Total profit/ loss (*2)

Profit / loss
Increase/
Interest and dividend income
from purchase, decrease on
Interestsale, andgain/loss on
Procurement
received
amortization evaluation (vs.
cost
(*4)
March 2022)
(*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-denomi na ted bonds a nd forei gn currency bonds , i nves tment condi ti ons i n credi t ri s k a nd s ecuri ti zed products , etc.>
Credit risk
Securitized products
Subtotal

151.7

(5.4)

146.3

9.3%

(1.6%)

(3.6)

(0.9)

(0.4)

0.5

(0.0)

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

1.8

(0.0)

1.8

0.1%

(0.0%)

0.0

0.0

0.0

0.0

0.0

(0.0) Loa n i nteres t revenue from hous i ng l oa ns , etc.

153.5

(5.4)

148.1

9.4%

(1.6%)

(3.6)

(0.9)

(0.4)

0.5

(0.0)

(2.7)

Copyright © 2022 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 2022

September 2022
Loan balanceCommitment
balance

Japan

68.5

10.7

79.3

53.4%

North America

25.6

2.0

27.6

18.6%

(24.7)(2.0)(26.7)(18.0%)

Europe

19.3

0.0

19.3

Asia and Oceania

13.7

0.0

Middle East

4.3

Latin America

Total

Loan balance

Composition

Composition

Total

62.3

10.7

73.1

49.2%

(34.2)(3.6)(37.9)(25.6%)

Manufacturing

21.5

0.0

21.5

14.5%

13.1%

Financial

14.5

2.0

16.5

11.1%

13.7

9.2%

Transportation

15.7

0.0

15.7

10.6%

0.0

4.3

2.9%

(10.7)(0.0)(10.7)(7.2%)

2.9

0.0

2.9

2.0%

Various services

14.6

0.0

14.6

9.9%

Other
(international organization)

1.1

0.0

1.1

0.8%

Wholesale and retail

2.4

0.0

2.4

1.6%

Total

135.8

12.7

148.6

100.0%

Construction

1.2

0.0

1.2

0.8%

Other

3.2

0.0

3.2

2.2%

135.8

12.7

148.6

100.0%(Of which, the U.S.)* Excluding Singapore BranchElectricity and gas

Commitment
balance(Of which, solar power generation)(Of whi ch, a i rcra ft fi na nce)

Total
* Excl udi ng Si nga pore Bra nch

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‐ 16 ‐