The Juroku Bankth
34 Financial Results Briefing[First half of the fiscal year ending March 2020]

November 29, 2019

Contents
Overview of results for 2019/9
Overview of results for 2019/9
Capital ratio, ROE, Dividend status

4-11
12

14 th Medium-term Management Plan
14 th Medium-term Management Plan: Current status

14

2020/3 business forecasts

15

Recent business activities
Launch of Juroku Tokai Tokyo securities

17

Approach to mobile first generation

18

Contents of needs in asset succession

19

Contents of supporting regional economy

20

Business process reform

21

ESG activities

22-25

Earnings forecasts and other future-related statements made in this document are based on information available at the timeof publication and a certain level of assumptions that are considered to be reasonable. Actual results may differ significantly
due to a wide range of factors.
2

Overview of results for 2019/9

3

Overview of results for 2019/9
Non-Consolidated（Unit: 100 million yen)
2017/92018/9 A

2019/9 B

B－A

Overview of non-consolidated results
Net core operating profit increased by 53%○Core gross operating profit increased by 2.5

Core gross operating profit

286

296

321

25

Net interest income

239

250

267

17

billion yen YoY to 32.1 billion yen , due to an

46

47

53

6

increase in Net interest income and Fees and

1

△1

0

1

commissions.

251

226

214

△ 12

140

123

114

△9

95

88

85

△3

Expenses decreased by 1.2 billion yen YoY to 21.4

Net core operating profit

34

69

106

37

44

71

105

34

billion yen, due to decrease in Personnel expenses

Net core operating proﬁt（ex Investment trust cancellation proﬁt）

Net business income

41

66

105

39

Profit related to securities investment

19

10

△1

△ 11

6

△2

△1

1

12

13

0

△ 13

△ 11

8

17

9

Ordinary profit

62

72

91

19

Interim net profit

46

52

65

13

Fees and commissions
Other operating profit(except profit on JGBs and other debt securities)

Expenses
Personnel expenses
Non-personnel expenses

Profit on JGBs and other debt securities
Profit on equities
Credit costs

2017/92018/9 A

2019/9 B

B－A

Core gross operating profit

317

329

356

27

Expenses

272

252

243

△9

Net core operating profit

45

77

113

36

Ordinary profit

72

79

96

17

49

54

65

11

of the parent company

and Non-personnel expenses
Ordinary Profit increased by 1.9 billion yen Y to Y to
9.1 billion yen
Interim net profit increased by 1.3 billion yen YoY
to 6.5 billion yen
Both is increased for two consecutive terms

Overview of consolidated results
Increased both in sales and profit

Consolidated

Interim net profit attributable to shareholders

・Increase in interest and dividends on securities

Ordinary Profit increased by 1.7 billion yen Y to Y to
9.6 billion yen
Interim net profit attributable to shareholdersof the parent company increased by 1.1 billion yen
YoY to 6.5 billion yen(*)From the current interim period, a part of the dividend income frominsurance has been offset against premiums paid, and the prior year's figures
have been reclassified.
In addition, gains and losses related to investment partnerships are accounted
for using the net method.

4

Overview of results for 2019/9
Main measures implemented during the medium-term management plan
14th Medium-term Management Plan（2017/4〜2020/3）
Branch reform project
By centralizing back office works at branches to headquarter,
reviewing complicated work procedures and documents,
utilizing IT, etc., eliminate back office operations frombranches to create time for branch staffs to consult withcustomers
Sales strengthen by staff relocation

Strategy effection(as of Sep 2019) compared with Sep 2016
reduction of back office operations▲510 thousand hours
Corporation solution related revenue+0.4 billion yen

Me

As a result of branch reform project, stafff relocation isaaccelerated, and more staff work in a sales division.

Indivisual related revenue+1.1 billion yen

Branch Activity Process Evaluation Systemrescommissions+1.9billion yen②Decrease
Cost and Expenses▲4.4 billion yen③Efficiencysu①Increase
Fees and

Other revenue+0.5billion yen

Abolished sales quota, customer-oriented sales process ishighly evaluated.

Number of personnel(non-consolidated)▲ approx. 600 staﬀs(*)

Launch of 'Corporation Solution Team'
Beyond the framework of products, to a new sales structure
to find customers' true needs and realize more speedy
proposals from various angles.

Staff relocation to expanding businessapprox. +340 staﬀs（*）
Non personnel expenses▲1.3 billion yen

Core OHR
66.82%④Profitability
Net Core Operating
Profit10.6 billion yen④Profitability
Profit of customer
services+3.2billion

yen（*）Compared with Mar 20175

Overview of results for 2019/9（non-consolidated）
Net core operating profit
Net business income（100 million yen）

150

Factors to increase or decrease of
net core operating profit

Net core operating profit

Net core operating profit（ex Investment trust cancellation profit）
Net business income（100 million yen〕

105

Loan
interest
△1

100

V:+3
R:△4

106 105 105

50

34

44 41

18/9

19/9

40%
20%
0%
-20%
-40%
-60%
-80%

The Juroku Bank

1st in improvement
ratio and amount

Others
+2

V:＋0
R:+15

106

85

65

Change of regional bank net core operating
profit from previous fiscal year

60%

V:△0
R:＋2

Fees andcommissions+6

69 71 66

0
17/9

Deposit Securities
interest interest+2+16

Nonpersonnel
expenses+3
Personnel
expenses
+9

69
18/9

19/9

Change of Net core operating profit and Net
business income in last 5years（100 million yen〕
140

100

20

106

85

80

40

Net core operating profit

Income recovers to the position as of 2016/9

120

60

Net business income

72
115

69
105

99

Minus interest
policy starts in
Feb 2016

34
41

66

0
15/9

16/9

17/9

18/9

19/9

6

Overview of results for 2019/9（non-consolidated）
Average balance and yield of JPY loan

Net interest income(100 million yen)

JPY loans and deposits

JPY securities investment

300
250
200

267

250

239

189

188

0.919

0.894

1.000

0.600
42,616

41,905

188
40,25937,500

0.400
0.200

35,00017/9

18/9

Corporate loans

Indivisual loans

Total loans

（％）
1.157

1.118

1.100
0.935

0.914

0.000

19/9

Interest rate of JPY loan by category

1.086

0.903

1.060

0.896

17/9

18/9

19/9

Loan balance according to type of borrower（100 million yen〕

20,00017/9

17,166

17,154

18/9

16,221

19/9

15,834
16,75814,56815,00010,0006,034
5,892 6,017

0.900
0.800

1.200

0.974

40,000

0

1.000

(%)

0.800

50

1.200

Average yield

42,500150
100

Average balance

45,000574136(100 million yen)

20

19

12

Foreign currencies

4,245
4,126 4,349

5,000
0.832

0.815

0.823

0.833

Improved

0.700

0Large, Mid sized Small to medium

0.600
18/3

18/9

19/3

19/9

company

company

Indivisual

Public7

Overview of results for 2019/9（non-consolidated）
Fees and commissions

Personal custody assets（Investment products）(100 million yen)(100 million yen)

Indivisual-related

Corporate-related

60
50
40

53
46

18

30

47
16

20

25

25

18/9

19/9

Corporate solution related revenue

600

Syndicated loans and Commitment fees

Private Placement Bond fees

M&A fees

Business matching fees

554
157

300

0

761

551
207

140

74

132

114

123
17/9

Indivisual pension insurance

8,000

6,985
172

7,494
251

7

0
17/9

Investment trust

10,0004,000

22（100 million yen）

12,000Public bond

7,945
232

6,000
5

5

20
10

Others

237

88
148

5,218

5,833

6,479

1,594

1,409

1,232

17/9

18/9

19/9

2,000
0

Ratio of Fees and Commissions against core grossoperating profit（%）

Indivisual-related

Corporate-related

Total

18.0
16.0
14.0

16.12

16.53
15.97

12.0
10.0

8.64

7.92

7.83

8.0
6.0

287
155

4.0
2.0

1.93

1.85

2.36

0.0
18/9

19/9

17/9

18/9

19/9

8

Overview of results for 2019/9（non-consolidated）
Balance of securities investment(100 million yen)

20,000

JGBs

Local government bonds

Corporate bonds
OthersstocksForein currency securities

15,00013,301

10,000

1,493
1,264
1,456

5,000

13,897

2,198

2,425

4,247

400

1,990

200

3,157

0

18/9

-200

19/9

Cross-held stocks（ book value basis ）1,000

Cross-held stocks

Percentage against core capital

23.0
21.6

22.0

20.8

600
400

24.0
23.0

800

21.0
19.5

883
573

200

Other securities

856

757

750

746

794

676

49

21

74

△ 37

△ 65

17/9

18/9

106

600

2,039

0

(100 million yen)

Stocks

1,441

3,985

17/9

800

1,459

1,510

JPY bonds

1,000

2,726

1,384
2,044

(100 million yen)

12,815

2,546

2,641

Valuation gains and losses of securities

551

546

541

20.0
19.0
18.0

19/9

・ Although the redemption of
government bonds was mainly invested
in local government bonds, the overallbalance of securities decreased.
・ Due to the decline in interest rates
mainly in the U.S., unrealized gains /losses on "other" securities, mainly
foreign bonds, turned positive.
・ Strategic investment stocks aregradually reduced.

17.0

0
09/3

・・・

16/9

17/9

18/9

19/9

9

Overview of results for 2019/9（non-consolidated）
Core ＯＨＲ
(%)
100
90

Details of Core OHR

Core OHR

Personnel expenses OHR

Non-personnel expenses OHR

300

76.5
66.8

70

50
40
30

33.2

Non-personnel expenses

taxCore gross operating profit

286
251

16

41.7
29.7

35.5
26.6

302

296

235

226

11

95

15

321
294

216

214

10

14

93

88

86

85

140

130

123

118

114

17/9

18/3

18/9

19/3

19/9

150
100
50
0

20
17/9

18/9

19/9

Profit of customer services

Net interest margin
Loan-deposit Interest margin(100 million yen)

(%)

40

0.240

30

Loan-deposit Interest margin

32

10
0

0.080

-18

0.099
0.036

0.040
0.000

-20

-0.040

-30
17/9

0.132

0.160
0.120

11

18/9

19/9

Net interest margin
0.193

0.200

20

-10

250
200

60

48.9

personnel expenses

350

87.8

80

（100 million yen）

0.082

-0.055-0.080
17/9

18/9

19/9

10

Overview of results for 2019/9（non-consolidated）
Non-performing loans

Ratio of non-performing loans（ Financial Revitalization Act basis ）（100 million yen)

1,200
1,000

Bankrupt and quasi-bankrupt assets

Substandard loans

90

986
42

2.5

760
36

668

22

782
580

400

2.75
2.45

642

31
859

（%）
3.0

1,091

800
600

Doubtful assets

487

2.0

480

1.80

1.5
200
0

1.52
142

162

144

150

141

15/9

16/9

17/9

18/9

19/9

Credit costs（100 million yen)

（*2）

（*1）

（*3）

1.45

1.0
15/9

16/9

17/9

18/9

19/9

Factors to increase or decrease loan-loss reserves○2017/9 （*1）
Reversal in upgrade of large credit○2018/9（*2）
Increase of individual allowance for
doubtful accounts
・decrease of upgraded customer
・increase of CF subtraction customer
・decrease of collection〇2019/9 （*3）
Increase of individual allowance for
doubtful accounts
・increase of CF subtraction customer
・decrease of collection

11Capital ratio・ROE・Divided status
Capital ratio(non-consolidated)

Capital ratio(consolidated)
Capital ratio(Domestic rule)

Capital ratio(Domestic rule)
（％）
11.00
10.00

Capital ratio(Domestic BaselⅢ fully implemented basis)

8.00

8.50

8.59
8.00

8.40

8.29

8.45

7.00

Capital ratio(Domestic BaselⅢ fully implemented …
9.13

9.18

8.67

8.64

8.75

17/9

18/9

19/9

7.00
6.00

6.00
5.00

5.00
17/9

18/9

19/9

ROE

Dividend status（Annual dividend per share）
ROE（consolidated）

90
3.77

3.60

2.96

net profit
当期純利益

management
integration

80（100 million yen）

140th

100

50

0

40

△ 100

30

3.14

△ 200

20
2.86

19/3

18/3

17/3

16/3

15/3

14/3

13/3

12/3

11/3

10/3

09/3

08/3

07/3

06/3

05/3

04/3

03/3

02/3

01/3

0
00/3

19/9

99/3

18/9

98/3

17/9

△ 300

10

2.50

300
200

120th

60

3.50

memorial
記念配当⾦
dividend

130th

70

3.15

Ordinary
普通配当⾦
dividend（yen）

ROE（non-consolidated）

（％）
4.00

3.00

9.68

9.00

9.03

9.00

（％）
10.00

△ 400

12

（Included in annual dividend after share consolidation for comparison(2017.10）

14 th Medium-term Management Plan

13

14 th Medium-term Management Plan : Current status
September 2019

Start April 2017

End March 2020

14 th Medium-term Management Plan
Major actions since the start of the plan
Establishment of customer-oriented business operation
Sales
structurereformIntroduced “Branch Activity Process Evaluation System” which evaluates efforts to establish long-term relationships withcustomers instead of seeking short-term profits

Improvement of profitability

Enhancement of financial intermediaries function

Promoting loans to SMEs based on “evaluation of customers’ business potentials”, promoting corporate solution sales,
promoting deposit asset sales, preparing for launch of joint venture subsidiary for securities business

Promotion of business process re-engineering
Business
processreformEfficient branch operation

Promoting “Branch Reform Project”, slimming down Headquarter functions, expanding replacement of large scale full-banking
type branches with less human compact branches

Actions aiming at achieving core OHR 60% level

Reducing costs through proper placement of human resources, cutting advertising expenses and software development
expenses etc.

Numerical targets of 14 th medium-term management plan
Before the plan（2017/3 Actual）

2019/3（Actual）

2019/9（Actual）

Targets for
final FY (2020/3)

10 billion yen

10.6 billion yen

6.5 billion yen

10 billion yen（deposit average balance + loan average balance）

9,350.1 billion yen

9,822 billion yen

9,906.9 billion yen

10 trillion yen

Deposit average balance

5,410.8 billion yen

5,550 billion yen

5,603.5 billion yen

5,700 billion yen

Loan average balance

3,939.3 billion yen

4,272 billion yen

4,303.4 billion yen

4,300 billion yen

8.84%

8.71%

8.75%

Around 8.7%

Before the plan（2017/3 Actual）

2019/3（Actual）

2019/9（Actual）

Long-term target

3.00%

3.05%

3.60%

5.00% or above

Contents
Earning
capability
Growthpotential

Net profit (consolidated)
Presence in local economy（Customer
base）
Financialsoundness

Capital ratio (consolidated)

Domestic Basel III fully implemented basis

Long-term target
Contents
Earning
capability

ROE (consolidated)

12

2020/3 business forecasts
Non-consolidated(Unit 100 million yen）
2019/32020/3（Actual） （Foreast）

YoY（100 million yen）

Core gross operating profit

590

625

35

Net interest income

498

511

13

Factors to increase or decrease

200

96

112

16

180

△4

2

6

160

443

421

△ 22

Loan
interest△1

Personnel expenses

242

224

△ 18

140

V:+6
R:△7

Non-personnel expenses

174

169

△5

120

Net core operating profit

147

204

57

100

Profit related to securities investment

20

4

△ 16

△0

△2

△2

21

6

△ 15

Credit costs

21

40

19

Ordinary profit

146

174

28

Net profit

99

120

21

Consolidated（Unit 100 million yen）

Fees and commissions
Other operating profit(except profit on JGBs and other debt securities)

ExpensesProfit on JGBs and other debt securities

Profit on equities

2019/32020/3（Actual） （Forecast）
Ordinary profit
Net income attributable to shareholdersof the parent company

YoY

162

185

23

106

122

16

net core operating profit

147

Securities
interest+10
Depositinterest
+2
V:△0
R:＋3

Personnel
expenses+18

Others+7

Nonpersonnel
expenses+5

Fees and
V:＋1 commissions
R:+9
+16

19/3

204

20/3

The target of 14th Medium-term Management Plan
(Net income attributable to shareholdersof the parent company) is expected to 12.2 billion
yen.

Core OHR(Non-consolidated) as a objective
reference is also expected to 67.3%

15

Recent business activities

16

Launch of Juroku Tokai Tokyo securities
Launch of joint venture subsidiary for securities
teamedup withJuroku Tokai Tokyo securities has started operation
based on a comprehensive partnership signed in March,
2018.
Assets deposited (ex indivisual deposit）

10,000(100 million yen)

8,000

Juoku Bank

Juroku TT securities

1,019

6,985

7,494

7,945

17/9

18/9

19/9

6,000
4,000
2,000
0

Opening Ceremony
The Juroku Bank
Strong customer relationship（as of Sep 2019）

Juroku TT securities

New added customer
About 1,000 accounts（+10%）Bonds
REIT

About 11,000 accounts

teamed up with
Various products and know-how

ETF

Realize
added value

Fund Investment
Equity securities

Market Info

Assets deposited
About 1,019 million yen（as of Sep 2019）

New
opportunity
for growing

Based on Juroku TT
Securities' wide range of
product and bespoke
capabilities, we canrespond to the various
needs of customers.
We will continue to pursue
growth for the entire groupbased on optimal
proposals, including
products handled by
Juroku Bank.
17

Approach to mobile first generation
Approach to mobile first generation

teamedup with

New customer experience and value will offer to mobile
first generation.

Launch of「Wallet+」service（17, Dec 2019）（10 thousand）

Number of 「Wallet+」downloads

80

56

50

30

23

20
10

JurokuBank
starts in
Dec
2019

40

40

Wallet+（Financial function）
・Money management
・Purpose-specificdeposits
etc.

81

68

70
60

Overview ofiBank business3 platforms
that make up iBank

90

10
1

0
16/9

17/3

Collaboration withpartner companies

17/9

2017.10
Kumamoto
bank・
Shinwa bank2016.7
Fukuoka
bank

18/3

18/9

2018.3
Okinawabank

19/3
2019.4Hiroshima
bank

19/9
2019.10
Yamanashichuo bank

Launch schedule

Wallet+（Non-financial function）
・Coupon・Adds
・Information contents

Solid appeal

Financial information
Non-financial information

User

Analysis tools

Approach to mobile first generation

Juroku Effective approach to the mobile first generation due
to the ease of use of smartphone apps and the easeof approach to various financial products included incontent

Activate local economy

 Revitalizing the local economy by providing solutions
to partner advertising needs

Firms

 Since the launch by Fukuoka Bank in July 2016,
the number of app downloads on the 6 releasedbanks has steadily increased to over 800.000.
Effective advertisement
 Targeted advertising can be implemented based on
customer data that reflects customer preferences suchas target deposits created by users on Wallet + in
addition to customer attribute information.

Access to various industry

 Comprehensive support for advertising strategies
through the provision of media and information to
Web media and advertising agencies

18

Contents of needs in asset succession
teamedup withTestament substitute trust(as an agent of Sumitomo Mitsui Trust Bank）

In Oct 2019, we launch the original product（じゅうろく遺言代用信託＜想族あんしんたく＞）
with the support of Sumitomo Mitsui Trust Bank
【Unique factor】

First in regional bankIn addition to family, applicant can bequeath
their money to various groups such as local
government, university.
As of Nov 2019,「Gifu Prefecture」「Gifu city」「Takayama city」「Gifu University」,above fourgroup is applicable.

Asset succession businessToward proper asset management and smooth asset succession in old age,
we’ve strengthened initiatives in the area of asset succession bycollaboration and partnership with external specialized agencies.

First in regional bankCommencement of handling ofguardianship support deposits
In October 2018, with the background thatillegal use by guardians has become a social
issue among the users of the guardianshipsystem, the handling of "Juroku GuardianshipSupport Deposits" started.
In all transactions such as account opening andrefund, the "written instructions" issued by thefamily court with jurisdiction are sought, andthrough the judgment of the family court,
misuse by a guardian in bad faith is prevented.
In consideration of the cost burden involved in
the administrative procedures unique to thisproduct, fees are set as follows.
○Account open fee：11,000yen（Inc Tax）
○Account maintenance fee(After 2nd year）：
3,300yen（Inc Tax）

By providing high quality products and services at the top of the region, we will support the inheritance andasset succession for customers to connect the feelings towards the family.

19

2.
⼗六TT証券との連携
Efforts
to support local industries○Supplier search service
A service that identifies the needs of buyer companies and matches
them with supplier companies who want to have an interview.
[Advantages of Buyer Companies]
A network of banks in Gifu, Aichi and Mie can efficiently search forsuppliers with brilliant technology.
[Benefits of Suppliers]
Provide opportunities for individual interviews with leading
companies.
[Juroku Bank collects interview fees]
As a result of the evaluation of the effective implementation of theinterview by avoiding the information mismatch between buyer andseller, the total number of the total number of times of theinterview was 284 and the number of the interview was 4,307 by
September 2019.

Efforts to support local industries
In order to support major local industries such as the
manufacturing industry, we are improving our supplier searchservices and analyzing the impact of innovation, and are working
to support local companies.

teamedup with○Next-generation mobility service“MaaS” seminar held in July
The seminar was divided into twoparts. The first part of the seminar
was entitled "The Current Situation
and Prospects of MaaS," andintroduced domestic issues related
to MaaS and examples of service
deployment in Finland.

In the second part, Toyota Motor Corporation held briefings forindividual investors.

teamedup withPart 1: [Organizer] Juroku Bank, Juroku TT Securities[Sponsor] Tokai Tokyo Securities, Development Bank of Japan
Part 2: [Organizer] Toyota Motor Corporation○The first regional bank to participate inFirst in regional bankthe MONET Consortium○Launched "MaaS Strategy Team" in
Aichi Sales Headquarters in May

The first regional bank to participate in the MONET
Consortium established in March 2019 by MONET
Technologies, Inc. (a joint venture between SoftBank
Corp. and Toyota Motor Corporation).

Launched “Maas Strategy Team” to promote newvalue creation, such as solving social issues in mobility
and realizing seamless finance with many service
providers participating in the MONET Consortium.
20

Business process reform
Branch reform project
By centralizing back office works at branches to headquarter, reviewing complicated work procedures and documents,
utilizing IT, etc., eliminate back office operations from branches to create time for branch staffs to consult withcustomers

Changes in time required for back office works at branches by “Branch reform project”
Before project start
Approx. 1.8 million
hours (in one year)

ActualApprox. 190,000
hours reduction（in one year）

ActualApprox. 420,000
hours reduction（in one year）

ActualApprox. 510,000
hours reduction（in one year）

Plan
Approx. 840,000
hours reduction（in one year）

Plan
Actual480,000 510,000
hours hours

17/3
Measures that have been
implemented
Review or abolition of back office
works
Centralizing back office works
Review of loan statement andattached documents
Centralization and simplification of
credit fating works
RPA covered works

18/9

19/3

19/9

Measures after the first half of
FY2019Deepencore
business

Paperless, copyless, filelessIntroduction of electronic contract
Introduction of tablet device for sales
activities
Introduction of tablet
Centralized telephone reception desk

Relocationof staffs

Challenge
to newbusiness

20/3

Highly developed financial
services
Relocation staffs togrowing area
Discussion about
digitalization and new
business
Relocation staffs tostrategic area

21

ESG activities Contribution to revitalization of local economy
SocialRegional revitalization

Social（Juroku teamed up with Chamber of Commerce)

Cashless activate seminor

Seminar on cashless payments in anticipation of reduced tax
rate due to consumption tax hike・ Latest trends in cashless
payments
・ Provision of information on
QR code settlement
・ Introduction of service
contents by payment businessSupport the improvement of settlement environment on aregional basis by stimulating cashless needs of local businesses

SocialCommunity development

Investment to Trip Base Michi no Eki Project

Regional revitalization（Juroku teamed up with Tokyomarine）

Gifu product and tourism PR event held
"Gifu Host Town Festival & Tourism& Product Fair" Held••

In cooperation with Tokio Marine & Nichido
Fire Insurance Co., Ltd., a gold partner of
the Tokyo Olympic and Paralympic Games,the "Gif Host Town Festival & Tourism &Product Fair" will be held at our Nagoya
Building.
People working in the surrounding office
districts came and went to the Nagoya
Host Town Festival held at the adjacent
Tokio Marine & Nichido Nagoya Building
and picked up products.

SocialDissemination of local attractions（Juroku teamed up with NagoyaMitsukoshi and Nagoya University of Arts)「GIFU・AICHI・MIE

Spring Marche」was held

Trip Base Michi no Eki Project

GIFU・AICHI・MIE Spring Marche○Sekisui House Co., Ltd. and Marriott International collaborate
with local governments in Japan to help local revitalization that
proposes a "trip through local attractions" using "Michi-no-Eki"
as a hub.

Held in collaboration with Nagoya Mitsukoshi to promote the appeal ofGifu, Aichi and Mie prefectures, which have many high value-added
regional products (4th time)

There are plans to develop
accommodation facilities withapproximately 1,000 rooms
at 15 locations in 6
prefectures nationwide,
including 4 locations in Gifu,
with a total of 11
organizations including us.

By helping our cutomers expand theirsales channels, we are revitalizing theregion.
In addition, the creation of the logo
flyer design is handled by Nagoya
University of Arts, and it is acommunity-based effort that adds
regional revitalization to industryacademia-financial institution
collaboration.

22

ESG activities Contribution to revitalization of local economy
SocialRegional revitalization（Juroku teamed up with Takayama）

SocialRegional revitalization

Use of corporate version of hometown tax payment”Seiryu no Kuni Gifu” food and agriculture business meeting2019（Juroku teamed up with Gifu and JA group in Gifu）

Donate to Takayama City to promote the “Child Dream
Creation Business” utilizing the corporate version of
hometown tax payment

Held the first business meeting in corporation with
Juroku, Gifu prefecture, JA Gifu.

<Child dream creation business>
Providing a high level of hands-on
learning that local children cannot
easily experience, and this is an
opportunity for children to cultivate
big dreams「Culture/Art」・・
workshop in culture/art by professor in art.
「Science」・・Facility tours and science lectures with state-ofthe-art technology「Sports」・・Sports classroom with top athletes

Community development
Approach to town development in Gifu city central area
SocialThis business meeting, which had been held in cooperation with
Gifu Prefecture since 2010, was held for the first time in addition to
the cooperation of the JA Gifu Group.
On the day, 16 buyer and 39 supplierin Gifu Prefecture participated and held
111 business talks.In advance twoseminars were held for suppliers, suchas “How to fill out an interview sheet”.
In addition, as a follow-up, we will provide total support such as sales
promotion, product enhancement, and sales channel expansion.

SocialPromotion of the attractiveness of our region（Juroku Group teamed up with ANA Strategic Research Institute Co.,Ltd. )Cooperation for ONSEN・Gastronomy walking
Composition of “Juroku Gifu city Town Development Fund”○ Limited liability business association, “Juroku Gifu city Town
Development Fund” has formed by joint investment with the
General Public Private Corporation Urban Development Promotion
Organization.

Through the financing torestaurant and café, we
enhaunce the value ofthe central area in Gifu.

ONSEN・Gastronomy walking
It is a new tourism aimed at enjoying the charm of local
foods, local nature and local history etc. by walking through
ONSEN full of Japanese charm.
When held in
Okuhida/Hirayu wetreated the participants
enjoying local
specialties, local sakeand tomato juice under
the fine weather.

23

ESG activities Human Resource support,culture,Sports Promotion
SocialSupport for Asian students

Juroku Bank’s Scholarship for Asian students
Support Asian students

Collaboration

Nagoya University Graduate
School of Law
Support Asian legal system

Contribute to reduction of legal risks by supporting humanresources on legal system of Asia where many of ourcustomers are engaged in business

Scholarship to university student from Gifu
The scholarship program started in 2008 and was held for the
12th time in FY2019
・This fiscal year, 10 new
scholars was hired, bringing thetotal number of scholars to 184.

FY 2019 scholarship students

In addition to this year's
scholarship students, somescholarship OBs also participatedin the award ceremony in August,providing a valuable exchange
opportunity.

Nagoya University
Graduate School of Law
2 students(Uzbekistan,Vietnam)(total 11 students since 2014)
Socialscholarship

Juroku Regional Promotion Foundation scholarship

Contribute to legal system of Asia

The Juroku Bank

SocialContribution to local activities

SocialEnhancement to culture/art

Support to various sports activities

Alliance to enhancement in local culture/art

Support to various sports activities

Juroku Regional Promotion Foundation「Clarazar Juroku Music Hall」••

Sponsored toSponsored to「Nenrinpic Gifu２０２０」「ぎふ清流都市対抗駅伝競⾛大会（2019.10.16）」(第33回全国福祉祭ぎふ大会）（2019.10.18）

The Juroku Regional Promotion
Foundation manages “Clarazar
Juroku Ongakudo” and uses it as aconcert hall for local residents.
This time, we have concluded anagreement with Comprehensive
Cooperation for Promotion of Local
Cultural Arts with the manager
contact facility of Samaranka Hall,a concert hall in Gifu Prefecture.

24

ＥＳＧ activities Environmental conservation・Governance
Environment

Environmental conservation activities

Contribute to development of sustainable society through ourenvironmental conservation activities, aiming to grow with the local
society.

Participated inlocal volunteer activities

Nagara River clean up project（Gifu）

Forest protection activity
Activity at “Juroku Bank’s Forest MITAKE”

Management Advisory Council
Ensure transparency and fairness of the Board of
Directors
GovernanceManagement Advisory Council
Human Resource
Advisory Committee（Since November 2015）

Compensations and Others
Advisory Committee

Chairman

Outside Director

Chairman

Outside Director

MemberOutside Director 1
Inside Director 2
Outside Expert 1

MemberOutside Director 1
Inside Director 2
Outside Expert 1

Advisory matters• Matters concerning
candidates for directors• Matters concerning
candidates for auditors• Matters concerning selectionof executive directors

Advisory matters• Matters concerningcompensation etc. of directors• Matters concerning evaluation ofeffectiveness of the Board of
Directors• Other management matters

Environment

Award to environment activities

Awarded Gifu city environment activities
Awarded Gifu city environment activities＜Awarded main activities＞
・Environment keep activies○Environment activities based on
Alliance in environment with Gifu
university.
○Hydro automotive「MIRAI」was
launched first in Gifu.

AML/CFT
Strengthen anti-money laundering and combating thefinancing of terrorism
GovernanceActions so far○ Established “Anti-Money Laundering Desk” in Risk Management
Division (June 2018)○ Identified and evaluated risks (July to September 2018）○ Tighten up oversea remittance（Stop cash handling）（August
2018）○ Established “Anti-Money Laundering Policy” (October 2018)○ Formulated risk reduction measures (November 2018)○ Amended Risk Assessment Report（November 2018）

Actions hereafter○ educate employees○ Establish “Anti-Money Laundering Committee” where management
members participate○ Evaluate effectiveness regularly by PDCA cycle

25

Improving
management
efficiency tosurvivecompetition

Ensuring customeroriented approach

Building
strategies byregionExpanding contact
points withcustomers
Offering solutions
above and beyond
expectations

Engagement
First

Basic Policy
Exploring corebusiness operations
deeperTaking on newrevenue-generating
opportunities

Addressingchanges ofexternal
environment
swiftly

Contributing to
the growth ofcustomers andlocal economy

Helping each
employee
improveperformanceLong-term vision

Positive
cycle

Actively getting
involved incommunity
tasks

Building a stable andindefinite revenuegenerating structure to
support local
communities

Improving fundmanagement
capacity26