The Juroku Bank, Ltd.

Financial Results Briefing[First half of the fiscal year ending March 2021]

December 3, 2020
Tokyo Stock Exchange First Section,
Nagoya Stock Exchange First Section (8356)

Contents
Section I Overview of results for 2020/9
Overview of results for 2020/9

4-7

2021/3 business forecasts

8

Dividends

9

Overview of the 15th medium-term management plan

10

Section II Consideration of the transformation to a holding company structure
Background to the commencement of consideration of the transformation to a

12-13

holding company structureState of consideration of the transformation to a holding company structure

14

Section III Recent business initiatives
State of initiatives aimed at COVID-19 infections

16-17

Engagement

18

Implementation of the engagement cycle

19

Three strategies

20-23

Initiatives after the opening of Juroku Tokai Tokyo Securities Co., Ltd.

24

Alliances

25

SDGs and ESG

26-28

Description of earnings forecasts and other future developments is based on information currently held by the Bank and acertain level of assumption that is considered to be rational. Actual business performance, etc., could be significantly different
due to a variety of factors.

2Section I
Overview of results for 2020/9

3

Overview of results for 2020/9(Unit: 100 million yen)

Non-consolidated

2018/92019/9 A

2020/9 B

B-A

Core gross operating profit

296

321

304

△ 17

Net interest income

250

267

255

△ 12

Fees and commissions

47

53

45

△8

△1

0

4

4

226

214

207

△7

Personnel expenses

123

114

105

△9

Non-personnel expenses

88

85

85

0

69

106

97

△9

71

105

94

△ 11

Net business profit

66

105

111

6

Securities-related gains / losses

10

△1

39

40

Gains / losses on JGBs and other debt securities

△2

△1

14

15

Gains / losses on equities, etc.

13

0

25

25

Credit costs

8

17

27

10

Ordinary profit

72

91

112

21

Interim net income

52

65

75

10

Other operating profit(excluding gains / losses on JGBs and other debt securities)

Expenses

Net core operating profit
Net core operating profit(excluding loss on investment trust cancellation profit)(Unit: 100 million yen)

Consolidated

2018/92019/9 A

2020/9 B

B-A

Core gross operating profit

329

356

345

△ 11

Expenses

252

243

240

△3

Net core operating profit

77

113

104

△9

Ordinary profit

79

96

118

22

Interim net income attributable to owners of the parent company

54

65

75

10

Increased profits for third
consecutive year on both a nonconsolidated and consolidated basis
 Net business profit
 Ordinary profit  Interim net income

Overview of the non-consolidated
settlement of accounts
 Core gross operating profit(Decreased by 1.7 billion yen compared with the same
period of the previous year)• Net interest income decreased by 1.2 billion
yen, mainly due to decreased interest anddividends on securities.
• Fees and commissions decreased by 800
million yen due to voluntary restraints on visits
to prevent the spread of COVID-19 infections.

 Expenses(Decreased by 700 million yen compared with thesame period of the previous year)• The effects of sales and business reforms
continued to decrease.

 Net business profit(Increased by 600 million yen compared with the same
period of the previous year)• Gains / losses on JGBs and other debt
securities increased

 Profit(Compared with the same period of the previous year)• Ordinary profit increased by 2.1 billion yen• Interim net income increased by 1 billion yen

Overview of the consolidated
settlement of accounts
 Profit(Compared with the same period of the previous year)• Ordinary profit increased by 2.2 billion yen• Interim net income attributable to owners of theparent company increased by 1 billion yen

4Overview of results for 2020/9
Breakdown of net interest income

Trends in net core operating profit / net business profit(100 million yen)120

Net core operating profit(100 million yen)
円貨預貸金利息収支
Foreign currencies
300

Net business profit

250

100

19

80
60

106 105

40

69

97

JPY loans and
外貨資金利益deposits

円貨有価証券利息配当金
JPY securities investment

267

255

20

20

200

41

57

100

188

188

188

18/9

19/9

20/9

44

111

66

20
0

0

18/9

19/9

20/9

Factors behind changes in net core operating profit

Average balance and yield of JPY loans(100 million yen)(100 million yen)
V: Balance factor R: Yield factor

120

46,0000.919
100Interest
on loans
△2
V:+4
R:△7

80

Personnel
Nonexpenses personnel+9
expensesFees and0commissions△8

106Interest
onInterest on
securities
deposits,
△12
etc.
+1

Others+3

Yen-denominatedAverage balance average balance of loans(%)

Yen-denominatedaverage yield of loans
Average yield

1.400

0.894

0.870

44,000

1.000
0.800
0.600
0.400

42,0000.200
0.000
43,70997
40,000V:△０
R:+1

41,90542,616-0.200-0.400-0.600-0.80038,000

60
19/9

1.200

20/9

-1.000

18/9

19/9

20/9

5

Overview of results for 2020/9
Breakdown of fees and commissions

Corporate solution-related revenue(million yen)
1,000

Assetson deposit-related Fees and commissions
Individual-related
Corporate
solution-related
under transactions at
Corporate-related
Other<Juroku Tokai Tokyo Securities Co., Ltd.>
Others(100 million yen)
80

Syndicated loan fees + commitment fees, etc.

70

11

5

60
50
40

500

20
17

5

7

25

25

8

20
10

551

45

16

30

Business matching fees

53

47

207

Individual-related
results by period
1Q:7
2Q:11

74
114

19

155

0

761

145

237

157

88

150

148
430

287

0
18/9

19/9

20/9

18/9

(100 million yen)

Cross-shareholdings

20.8

Percentage of core capital

18.0

541

20.0

10.0

511

900

19/9

20/9

SharesStocksOther securities

759
64

500

794

676

21
△ 65

74

24

18/9

19/9

20/9

300

670

5.0
0.0

18/9

20/9

856

700

100
400

750

106

15.0

546

JPY
Domestic
bondsbonds(100 million yen)
(%)
25.0

19.5

19/9

Valuation gains / losses on securities

Cross-shareholdings (book value base)

600

883

Privately-placedbond
Private placement
feesfees

M&A fees

Market-in approachhas been successful

△ 100

6

Overview of results for 2020/9
Profit of customer services

Equity ratio (consolidated / non-consolidated)(100 million yen) Profit of customer services = loan average balance  difference in interest
rates for depositors and borrowers+ net income from fees and commissions- operating cost

40

Equity ratio (consolidated)
Equity ratio (non-consolidated)

(%)
10.00

9.50

9.65

9.13

9.18

9.00

20

32

9.05

31
8.50

11

8.50
8.00

0
18/9

19/9

18/9

20/9

Core OHR

90.0

76.5
66.8

70.0

40.0

5.00

68.0

4.50

41.7

20/9

35.5

34.7

ROE (non-consolidated)

4.40
3.77

4.00

30.0
20.0

ROE (consolidated)(%)

60% range
maintained

60.0
50.0

19/9

ROE (consolidated / non-consolidated)Core OHR
Amended
OHR
Personnel
amended
OHR
Personnelexpenses
expensescore OHR
Non-personnel
expensesamendedOHR
Non-personnel
expensescore OHR

(%)

80.0

8.59

3.50

4.16
3.14

3.60
3.00

29.7

10.0

26.6

28.1

19/9

20/9

0.0

3.15
2.50
2.00

18/9

18/9

19/9

20/9

7

2021/3 business forecasts(Unit: 100 million yen)

Non-consolidated

2020/3(Result)

Compared toprevious fiscal
year

2021/3(Forecast)

Factors behind changes in net core operating profit

Core gross operating profit

626

610

△ 16

Net interest income

519

497

△ 22

Fees and commissions

106

104

△2

1

9

8

421

410

△ 11

Personnel expenses

223

209

△ 14

Non-personnel expenses

170

172

2

205

200

△5

9

48

39

Gains / losses on JGBs and other debt securities

8

15

7

Gains / losses on equities, etc.

1

33

32

Ordinary profit

185

195

10

Net income

127

130

3

Other operating profit(excluding gains / losses on JGBs and other debt securities)

Expenses

Net core operating profit
Securities-related gains / losses(Unit: 100 million yen)

Consolidated

2020/3(Result)

2021/3(Forecast)Compared toprevious fiscal
year

Ordinary profit

194

205

11

Net income f rom attributable to owners of the parent company

128

132

4

(100 million yen)

210

190

Fees
Interest Interest Interest
Nonon
and Personnel personnel Otherononloans deposits,securities commis expenses expenses +5
etc.
+14
△3
sions
△21
△2
+2
△2
V: △0
V:+8
R:△12
R:+3

205

200

V: Balance factor R: Yield factor
170
20/3

21/3

 Ordinary profit / net income
Prospect of increased profits[non-consolidated] for 4 consecutive years[consolidated] for 3 consecutive years
 Non-consolidated core OHR
Prospect of 60% range maintain8

Dividends
Dividends (annual dividend per share)(Transition over the last 10 years)
Ordinary dividend

Annualdividend(yen)Interimdividend

Term-end
dividend

Completion ofmanagement
integration

90

Ordinary
dividend80

Increase

Commemorative dividend

Special dividend
Achievement of
medium-term Ordinary
management dividend
plan targets

140th anniversary

70

2019/370 yen35 yen35 yen35 yen60-

50

2020/380 yen80 yen2021/335 yen35 yen45 yen45 yen35 yen35 yen40

Specialdividend30

10 yen20

Ordinary
dividend

100

10 yen

12/3(plan)(plan)

13/3

14/3

15/3

16/3

17/3

18/3

19/3

(For comparison, presented as annual dividends after the reverse stock
split (2017.10))

20/3

21/3

(plan)

Transition in total dividends(million yen)

Total dividends

Consolidated net income

128.6

3,200
3,000

100.3

99.0

(100 million yen)

132.0

106.5

140
120
100

2,800

80

2,600

2,989

2,989

2,989

2,400

2,615

60
40

2,615

2,200

 Shareholder return policy
We will continue to pay stable dividends
while paying attention to the further
improvement of our financial structure.
We have increased dividend payments inaccordance with improved profit levels inrecent years.

20

2,000

0
2017/3

2018/3

2019/32020/32021/3(plan)

9

Overview of the 15th medium-term management plan
FY2022 targets

These targets are based on the assumption that the impacts of COVID-19 infections willsubside at an early stage.

Item(FY3/2020 results)

Term to September
2020
ResultAt the start of theplan

FY2022
TargetEarning
capability

Net income (consolidated)

12.8 billion yen

7.5 billion yen

12 billion yen

Efficiency

Core OHR(non-consolidated)

67.18%

68.04%

Around 67%

At the start of theplanTarget(FY3/2020 results)

Term to September
2020
ResultLong-term targets
Item

Earning
capability

ROE (consolidated)

3.65%

4.16%

5% or moreFinancialsoundness

Equity ratio (consolidated)

9.27%

9.65%

10% or more
10

Section II
Consideration of the transformation toa holding company structure11

Background to the commencement of consideration of
the transformation to a holding company structure
We will respond to changes in the environment surrounding regional financial institutions
and fulfill our responsibilities towards sustainable regional growth.
The bank’s operating base (potential of the region)
Shipments of manufactured goods
Gross prefectural product (nominal) (Business establishments with four or more

Population of each prefecture

employees)

Gifu Prefecture:

Gifu Prefecture

1.99 million people

Gifu Prefecture:

7,768.9 billion yen

Gifu Prefecture:

5,889.7 billion yen

Aichi Prefecture: 7.55 million people

Aichi Prefecture: 40,299.8 billion yen

Aichi Prefecture: 48,722.0 billion yen

Total 9.54 million people

Total 48,068.7 billion yen

Total 54,611.7 billion yen

7.6% of total population

8.6% of national total

16.5% of national total

Aichi Prefecture(Source: Ministry of Internal Affairs and(Source: Cabinet Office(Source: Ministry of Economy, Trade and
FY2017 “Annual Report on Prefectural Industry
Communications“Population Estimates” October 1, 2019)
Accounts”) 2019 Confirmed Report of Statistics by Industry)

 Comparing the potential of the region to the world

Changes in the role of financial institutions
Population

GDP

Provision of financial services
Total for Gifu Prefecture andAichi Prefecture

World
Level of happiness
Ranking

9.54 million
people48 trillion yen(Japan) 62nd

Sweden10 million
people61 trillion yen

7thSupport for the sustainable growth of theeconomic zone

Norway48 trillion yen

5thActive involvement in and resolution ofregional issues

5.4 million
peopleFinland5.5 million
people30 trillion yen

1st

The population and gross prefectural product of the economic zone, which are at levels comparable to a country, are major
strengths for building a sustainable society under future environmental changes.
12Background to the commencement of consideration of
the transformation to a holding company structure
Breaking away from Tokyo centralization

Jobs and salaries comparable to Tokyo
A level of education comparable to Tokyo and you canraise children
Culture and art comparable to that of Tokyo is available
Unlike Tokyo, there is a comfortable living andcommuting environment
Go back and forth to Tokyo and the world, and create
new exchanges
You can live among parents, siblings and many old
friends
13

State of consideration of the transformation to a holding
company structure
We launched 3 working groups for The Juroku Bank Group to realize its ideal form through a holding
company
structure.

Expansionof business areas rooted in Strengthening of Group cooperation
 Strengthening of Group auditing andthe region and in line with the times

based on reform of the awareness andactions of officers and employees

 Establishment of new companies utilizing
deregulation

 Optimal allocation of management
resources within the Group Alliances within and outside the Group Strengthening of cooperation on a Groupbasis

 Reduction of risk spillover between groupcompanies

 Maximization of Group profits based on the
improvement of Group companies’
productivity

Management Resource Working GroupNew Business Working Groupsupervisory functions and speeding upof business execution
 Strengthening of management control
functions based on reorganization of theGroup format
 Strengthening of the governance system
led by the parent company
 Review of institutional design andorganizational format

Internal Control and Auditing Working Group[Existing business areas][New business areas]
JurokuLease

Juroku Card

Leasing

The Juroku
Bank
Bank

JurokuTokai Tokyo
Securities
Securities

Cards

 Expansion of business areas based on
the establishment of new companies• Town planning• Digitalization and IT• Investments and equity

Holding company
JurokuComputerService
Systems

JurokuBusiness
Service
Contract
administration

JurokuCreditGuarantee
Creditguarantees

New
company

JurokuResearch
Institute
Researchstudy

New
company

14Section III
Recent business initiatives

15

State of initiatives aimed at COVID-19 infections
While the impact of COVID-19 infections was expanding, we provided prompt support mainly for cash flow handling.

State of handling of business loans

State of handling of personal loan customers

We are handling about 8,000 related loans, mainly interest-free
and unsecured.

The handling of changes to loan conditions has passed its
peak and the situation has recently settled down.

Number of consultations on COVID-19 related loans
Number of requests for changes to loan conditions
related to COVID-19

17,270531

Number of COVID-19 related loans executed

8,168

Amount of COVID-19 related loans executed

About 240.0 billion yen(of which, amount of interest-free loans executed)

About 110.0 billion yen

Number of changes to loan conditions (residential loans)due to the impact of COVID-19
Amount of claims for which conditions were changed(residential loans)

243
Cumulative
About 4.1 billion yen(As of October 31, 2020)(As of October 31, 2020)

Demonstration of financial intermediary function
Consultation on holidays• We established “Help Desks for Anything” at a total of 24 offices on holidays from March to July (47 days).
During Golden Week, we established a “Management Help Desk” run by experienced branch managers and implemented a
total of 52 consultations.

Cash flow-related support• We understand the urgency of customers’ financial needs, and built a system for cooperation with bodies such as the“Municipal Societies of Commerce and Industry that are the accreditation organizations” and the “Guarantee Associations thatare the examining organizations” to provide funds smoothly through a one-stop financial institution.
• Provision of information on “employment adjustment subsidies” and “sustainability benefits” based on web seminars.

Equity support• Based on long-term business plans, we released “equity loans” and the “Together with Juroku Future Fund” in May, which will
provide support through simulated capital or equity investments for companies that need more capital.

The first stage of cash flow support in response to the impact of COVID-19 infections has generally come to an end.
We will continue to build support systems in line with customer needs and demonstrate our financial intermediary function.
16

State of initiatives aimed at COVID-19 infections
Contributions to local communities
We will overcome the Difficulties of COVID-19 infections together with everybody in the region through social contributions on various projects.
“Beat COVID-19!! Juroku Prefectural Product Support
Project”
We established a special page on the Bank’s website to
introduce Gifu Prefecture products (first regional bank to
do so in the Tokai region) to support local customers.

Support for local industry

Cooperation with local governments“55 (GoGo) campaign”~ Support for hometown Gifu ~Promotion of “buy local” activities

Ahead of the government’s Go To
campaign, we implemented acampaign to promote the use ofinns and hotels in Gifu Prefecture.

Efforts within the Bank to prevent the spread of
infections
For customers
In addition to face-to-face contact with customers, we have establisheda sales structure based on non-face-to-face contact with customersVoluntary restraints on external visits (about 2 months < April to May >)Restrictions on the number of contacts, recommendation of the use ofnon-face-to-face channels
Suspension of holiday consultation services at offices open on holidays
Use of web seminars

For officers and employees
Remote work has spread and the workstyles of officers and employees
have changed greatly.
 Taking of temperatures every morning and wearing a mask when working
or going out
 Expansion of work at home, distributed work and staggered work hours
 Use of web conferencing (seminars for managers, etc.)
 Review of office attendance system at sales branches (roughly 20%
reduction)

With the prolongation of the COVID-19 pandemic,
we are calling for consumption in Gifu City tosupport city businesses by shopping at local stores,
like the local production,
local consumption campaign.
We are promoting the “buylocal activities.”

Engagement with executives and employees
In the midst of the COVID-19 pandemic, the Bank issued a “Special Juroku
Bank Group Engagement Benefit” (total of 360 million yen) to all frontline
employees, along with a message from the President of the Bank, imbued withgratitude for daily activities and the expectation of future success.
This contributed indirectly to the region through effective use by employees forthe region and their families.
Benefit amounts  Bank employees 100,000 yen Part-time employees 50,000 yen
Message card written by the President

17

Engagement 1st (2017 to 2020)Engagement cycle (2020 and ahead)

Engagement

Engagement at The Juroku Bank means creating the future together withstakeholders.
Conceptual diagram
Awareness of employees

Customers

Officers andemployees

The engagement cycle
For whomThe
Juroku
Bank
Group

Local
communities

Shareholders
and investors

Conversion
Awareness of employees

Customers

Officers andemployees

Let’s Speak• Spread your ideas positively, gain theempathy of superiors, colleagues andcustomers, and plan actions andproposals.
• It is also necessary sometimes to haveconflicting opinions.

Let’s Listen• Listen carefully to what customers andother employees say.
• Analyze the current situation, find issues
and discover value mutually.

With whom

The
Juroku
Bank
Group

Local
communities

Shareholders
and investors

From the provision of unilateral value at the bank-level,
we will strengthen the image of close mutual engagement.
Each of us is responsible for the future of the region.

Let’s Think• Think seriously about customers, thebank and the region.
• Think for yourself about improvements,
countermeasures and proposals.

Let’s Act• Actually act and make proposals.
• Whether things go well or do not, reflect
on them and connect them to your next
initiative.

* Continuing this engagement cycle is the core of action for Juroku Bank officers and employees in relation to stakeholders.

We will foster awareness of new challenges throughout the organization with each employee
implementing an engagement cycle.
18

Implementation of the engagement cycle
Penetration of the engagement philosophy - Engagement news ~ Each sales branch facing a local community is acting independently in accordance with its actual situation ~Nagara Team (Nagara, Kitanagara, Takami)

Masago-cho Team (Honjo)

Ogaki Branch

Sakurayama Branch

As the annual large-scale fireworks display on
the banks of the Nagara River was canceled, theteam responded to the wishes of local
community members that the “tradition of the
Nagara River Fireworks Display” must not die out
and contributed to the community by cooperatingwith cleaning volunteers, contributing funds,
staying at local hotels, etc.

The team is providing financial support toindividual customers running restaurants
whose businesses are suspended
because of the COVID-19 pandemic andgathering the opinions of Bank employeeson the “content, prices and quantities” ofbox lunches purchased to propose
improvements from a consumer
perspective to support customers.

Thinking that we wanted to provide
something to customers while activities arelimited due to the COVID-19 pandemic,
the branch recorded a “Web Seminar on
Subsidies and Grants During the COVID19 Pandemic” and distributed it to them as
a DVD.
The branch supported customers withtimely information
provision based on
current conditions.

The branch learned through newspaper
reports that the local government is
implementing a “blue handkerchief
movement” to convey gratitude to people
involved in medical care.

Engagement Star Award
We established a new award system foroutstanding cases where ties and relationships
with local communities and customers were
deepened.
Awards are determined following a vote athead office and sales branches from amongaward candidates selected by the division in
charge.
Awareness of engagement is spreading
further among officers and employees.
Activities in the first half of 2020
Number of activity stores 514 stores in total
Number of activity reports 391 reports in
total

The branch enlivened
local activities andexpressed its gratitude tohealthcare professionals
by setting up a planter ofhydrangeas decorated
with blue ribbons.

Award examples
Masita Branch, Gero Branch~ Support in the wake of a heavy rain disaster with the sales branchand head office working together ~A heavy rain disaster hit Gifu Prefecture in July, 2020.
While the disaster was becoming enormous, Masita Branch provided
relief goods including “water and preserved food” from the stockpiles atthe branch to support evacuees and firefighters helping the area without
sleep or rest.
In addition, the branch asked head office to dispatch emergency disaster
response vehicles and provide additional support, so additional support
materials including power supplies, bread and drinking water were sent.
Moreover, after the disaster, the branch joined volunteers from the first day
to remove soil and sand that had flowed into houses due to land collapses
in various parts of Gero City.

Ties with local communities are made stronger by employees implementing the “think and act” engagement cycle for themselves19Three strategies ~ Support for main business ~Support for customers’ main business worked on with a market-in approach
Finance

Consulting

Corporate growth stage

Needs of each field

Cash flow support(short-term andlong-term)

Equity support

 Fund procurement
 Cash flow stability• Restructuring of debt to repayment
amounts matched to cash flow
 Investments and loans in cooperation
with public institutions, etc.

 Equity loans• Supply of long-term stable funds using
simulated capital based on businessevaluations
 Together with Juroku Future Fund

Sales
recovery
support Sales channel expansion• Business matching New business development• Re-education of human resources• Use of subsidy systems, etc.

Othersupport Consulting• Introductions to managementhuman resources• Support for the formulation ofbusiness improvement plans Business transfers, M&A support, etc.

During the COVID-19 pandemic, customer needs shifted from immediate cash flow to support for their main businesses aimed at long-term businessrestructuring. We are developing products and services to meet the various needs anticipated such as “sales recovery,” “capital enhancement,” “longterm business plans” and “business transfers,” and will provide optimized tailored services to customers to support their main businesses.
[Recent initiatives to support main businesses]
 Establishment of the Business Succession Office (March 2019)
 Commenced human resource introduction business
Cumulative CFF
at Juroku Research Institute (April 2019)
Result: 250 cases
 Release of cash-flow finance (CFF)(August 2019) Release of “Together with Juroku Future Fund”
Revenue from humanresource introduction
and “Equity loans” (May 2020)
business in the first half of Upgrading of business matching
FY2020 increased by 40%(Introduction of Linkers for Bank) (June 2020), etc.
compared to the previous

Doubling of the number of
M&A contracts in the firsthalf of FY2020 comparedwith the same period of theprevious year

Equity loans
Result: 2 cases

Improvement of matching
accuracy and range

fiscal year

We are increasing corporate solutions revenue by facing customers and providing added value in line with their needs
20Three strategies ~ Implementation of deep consulting ~We are implementing a market-in approach in line with each customer’s generation, family situation, asset status, etc.
Raise a family and enjoy life
[Interests]
Asset formation, security andmarriageChildbirth and childcare, cars
and leisure

Grow and prepare

Protect and prepare

Leave[Interests]
Housing and education funds
Retirement funds and parental
care[Interests]
Asset succession (inheritance)and retirement
Own care and dementia[Interests]
Asset (money, home)management and end of life
planning
Future life and health of children
and grandchildren

Young generation

Elderly generation

We have developed a system that accurately segments customers and provides them with the services they need.

Wealth managers

New

We redefined the wealthy segment and newly
established a specialist system. (9 specialists
appointed)
We will use a wide range of knowledge, fromasset management methods to the interestsand preferences of customers and theirfamilies, to revitalize business.

Growing need for self-help efforts
in association with the declining
birthrate and aging population

Personal assets on deposit (non-consolidated)

Wealthy
segment

Insurance consultants
Increase in
number

We increased the number of
insurance product specialists significantly.
(from 1 person to 7 people)
We will respond to customer needs byproviding guidance to a wide range ofcustomers on the use of insurance functions incooperation with FA, etc.

Consulting for customer asset
formation and succession

Wealthy
segment

Quasi-wealthy
segment

Mass segment

About 270
peopleSenior FA leaders
FA leaders
General FA(FA: financial advisor)(100 million yen)

預金等
Deposits

投資信託
Investment
trust

公共債
Publicbonds

48,35350,00044,89145,000
5,833
40,000

About 180
people35,000

Savings personnel

30,000Individual pension
個人年金保険等
insurance,
etc.

45,959
6,782
6,479

251
1,409

232
1,232

37,39738,014

18/9

19/9

202
1,125

40,242

20/9

We are optimizing contact points with customers to meet a wide range of needs, from expansion of the investment base to thedemonstration of expertise21

Three strategies~ Operation process reform based on digitalization ~We are improving productivity by reviewing business processes using digitalization.
We are aggregating and using customer data based on new business processes to provide accurate, comfortable services.

Distribution of smartphones to all
officers and employees~ Abolition of fixed telephones ~Total investment
72 million yen
Reduction in business
time-50,000 hours per year

We are reducing the handling of incoming calls at sales
branches by concentrating telephone calls to sales branches at head office.

Digitalization of data
Conversion of documents collected from customers
into data.
We will convert to paperless business and reduce spacecosts by conducting centralized management.

Total investment
116 million yen
Reduction in business
time-20,000 hours per year

Sales Branch A[Information gathering in CRM]

Sales Branch B

Paper-based information isconverted into data and stored on aserver. We are expanding theinformation held in CRM and using
the aggregated information.

[Preparation of interview records using voice input]
By utilizing the voice input function and inputting voice during small gaps
in work, interview records are prepared on the linked CRM.
This reduces desk work related to interview records.

Computerization of sales activities
Streamlining of external visit activities in cooperation
with CRM

Total investment
600 million yen
Reduction in business
time-80,000 hours per year

Digitalization

Aggregation of customer
information

Realization of greater
operational efficiency

Data-based measures[Computerization of transactions]
Tablet PCs are linked with CRM to computerize varioustransactions related to investment trusts, insurance, etc.,
and the transfer of property with customers.
This realizes smooth transactions and reducesadministrative work.

We are increasing the productivity of officers and employees through thecreation of time based on the streamlining of work and a market-in
approach based on accumulated information.
Work streamlining target for the final year of the 15th medium-term
management plan: Reduction of 800,000 hours per year

We will accelerate changes to business based on digitalization and enhance customer awareness and the quality of work.
22Three strategies~ Construction of the optimal channel system ~Contributions to regional revitalization based on the optimization of branch and ATM networks, and effective use of assets
Streamlining of channel management
Branch relocation and consolidation (branch-inbranch method) Expenses down by about 156 million yen per year By the end of FY 2020, 3 branches will be consolidated using
the branch-in-branch method.
• Ikeshita Branch• Seihon-machi Sub-Branch• Softopia Japan Sub-Branch We will continue in future to analyze the market and consider the
consolidation of branches based on profitability.

Optimization of the ATM network
Improvement of income and expenditureof about 55 million yen / year Commenced joint operation of ATMs (4 locations) with Gifu
Shinkin Bank, an ATM partner financial institution (fromNovember) Revision of the Bank’s ATM fees outside of business hours (fromOctober)

Reviewing the branch and ATM networks will
 Realize efficient personnel placement and allow us to provide moredetailed, higher quality financial services
 Maintain their role as regional information gathering channels

Balancingthe
themaintenancemaintenance ofof customer
customer contact
theBalancing
contactand
andtheoptimizationof
asset
holding
costs
optimization of asset holding costs

Effective use of branches
By reconstructing branches when they are due to be rebuilt ascomplexes combined with housing, we will contribute to the creationof local prosperity. (Scheduled for completion in spring 2022)

Sakurayama Branch(Showa-ku, Nagoya City)< Outline of land and building >1-minute walk from Sakurayama
Subway Station
1st and 2nd floors:
To be used as a bank office
3rd to 14th floors:
Condominiums (84)
< Developer >Kyoei Life Partners Co., Ltd.
Providing a residential function within walking distance of a metro
station will
 Contribute to “the station vicinity living area,” which isrecommended in Nagoya City’s town planning measures
 Further enhance the regional medical care system centered on
nearby university hospitals

Resolving
providingresidential
residentialfunctions
Resolvingregional
regionalissues
issues by providing
functions23

Initiatives after the opening of
Juroku Tokai Tokyo Securities Co., Ltd.
Juroku Tokai Tokyo Securities, which opened in June 2019, is growing at a faster pace than planned.

Group assets deposited (excluding personal deposits)(100 million yen)

The Juroku Bank
Juroku Tokai Tokyo Securities

9,500

9,000

9,454

★ Improvement in awareness of cooperation at sales branches

8,964
Total 8,727

8,500

1,344

Improvements in employees’ abilities to respond to customer needs inline with market trends based on an alliance with Tokai Tokyo FH.

8,000

7,789

7,945

8,110

7,0000
19/6

Awareness of proposals by the Group as a whole in a prolonged low
interest rate environment.

★ Improvement in employee skills

1,019
937

7,500

Assets deposited with Juroku Tokai Tokyo Securities
have increased by 40.7 billion yen (+43%) compared to the startof business.

19/9

20/9

★ Opening of Nagoya Sales Office
Juroku Tokai Tokyo Securities opened its first sales office in Aichi
Prefecture in April 2020.
It is now realizing wide-ranging customer support with a total of fivebases, four in Gifu Prefecture and one in Aichi Prefecture.

(Time of opening)

Virtuous cycle

Profitability in the first half ofthe fiscal year ending March
2021

Great contribution to
consolidated revenue

Prospect of eliminating
cumulative losses 1 year
ahead of the plan
(Elimination of first year’s carriedover loss of 240 million yen)

The proposal and provision of wide ranging asset management services to customers in Gifu Prefecture and Aichi Prefecture is agreat strength of the Bank group.
24

Alliances
We have started new collaboration in various fields to meet diversifying needs.
Expansion of sales channels in EC malls~ Collaboration with local co-creation-type online stores ~We are working with “Ennichi,” a regional EC malloffering attractive regional products and services tousers, in “Wallet+,” a smartphone app handled by
the Bank.

This supports the EC business of customer
companies targeting about 1.1 million app users
nationwide.
As the first step, it supported sales of bread andbaked sweets made using Lithuanian dried fruit. The
limited batch of 240 sets sold out quickly.
As its second initiative, it supported a first-time
exhibition of Mino-ware (about 100 items) made by
about 20 potters.

Open innovation program~ Support for the creation of new businesses ~We are working with “Creww, Inc.,” which runs a platform for challenges under the vision“creating an era of great challenges.”
Startups with creative ideas and technology registered on the community managed by Creww
are introduced to the Bank’s corporate network.

Support for food exports~ Provision of opportunities for business discussions with buyers
worldwide ~We are cooperating with “umamill Corp.,”which has a platform for business discussions
with buyers around the world.

By posting products on the umamill website,which operates under the concept of “creatinga place where all Japanese food
manufacturers can take on the challenge ofexporting,” business discussions with buyers
around the world can start.
Since umamill acts as agent for overseas
business procedures, overseas transactions
are possible in the same way as business withdomestic buyers.

Cloud factoring~ Completely online finance ~We have been working with “OLTA Co., Ltd.,” which developed AI (a scoring model) based on
the corporate data of about 200,000 companies and provides a completely online factoring
service from Japan, since 2017.

We are co-creating innovative businesses
and services by allowing management
resources and technologies to link up withexternal ideas.

OLTA provides a quick fund procurement
method using accounts receivable forbusinesses with many credits and little means ofprocuring small amounts of short-term working
capital.

This is contributing to the revitalization of theregional economy through the creation of
new business.

This is promoting the digitalization oftransactions and providing seamless financial
services.

25

SDGs and ESG~ Regional revitalization ~SocialContributions to the regional economy

Coordinating the “# Hida Beef at Home” project
Coordinating the “# Hida Beef at Home” project
All of Hida is cooperating with local governments, businesses, and other financial
institutions to support Hida beef, which was hit hard by sluggish consumption due
to the spread of COVID-19 infections. In just 12 days, the project recorded the 2nd*largest number of supporters ever in crowdfunding.
(* CAMPFIRE statistics as of May 13)○ Recruitment period April 29 to May 10○ Number of supporters 10,002 people○ Total amount of support 114 million yen

Human resource support
Regional
society
Launch of the Jewelia
project
to develop services for women by
SocialContributions to regional society - humanresource development
Cooperation with the Shirakawa-Go “Yuinowa” snack development
project
Social“Resolving issues at the Shirakawa-Go world heritage site”
Shirakawa is a famous village at the Shirakawa-Go world heritage site.
While the number of tourists has increased year by year, on the other hand, this has
not been linked to an increase in tourism consumption or improvements in theeconomic cycle. In response to this issue, souvenir confectionery was developed at
Shirakawa-Go Gakuen, a combined elementary and junior high school, and large
economic effects are expected.
This is not just an approach to a regional
issue from an economic perspective, theproject will also play a role in educating thechildren who will lead Shirakawa in the
future.

SocialRegional contributions

women

Introduction of regional support vehicles and disaster response
vehiclesThe first “Skill matching” by the Glass Shoes Project

Providing constant services even at times of disaster

This is a project that uses the unique perspectives ofwomen who play various roles in the home, at companies
and in the region to solve regional issues with free
thinking not bound by existing frameworks.
In the first “Glass Shoes Project,” members matched
women unable to demonstrate their abilities in full due tofamily circumstances, etc., despite having skills andtechniques that would enable them to play active roles insociety, with local firms aimed at providing places ofactivity connected with society.

In recent years, natural disasters such as typhoons
and heavy rain have occurred frequently
throughout Japan, so both regional support
vehicles and disaster response vehicles wereintroduced to assist people in trouble at times ofdisaster.

Users of avehicleequippedwith an ATM

When a torrential rain disaster occurred in Gifu
Prefecture in July 2020, we dispatched “community
support vehicles” equipped with ATMs and“disaster response vehicles” equipped with power Installed power
generator andgenerators and other equipment to the area.
power outlets
The vehicles were used to supply power to areas
hit by power outages and otherwise to support local
residents.

26

SDGs and ESG~ Regional contributions ~SocialSocialContributions to regional society

Contributions to regional society

Spreading the beauty of the sightseeing spots of Gifu Prefecture

Activities of the Juroku Foundation for Regional Promotion

Cooperation with the PR of the Sekigahara Memorial Museum

Supporting the region with three projects

We cooperated with the PR for the general opening of this sightseeing base in Gifu
Prefecture.

 Financial aid for regional revitalization activities

Four male employees from the nearby Sekigahara
Branch worked all day in armor borrowed from the
Sekigahara Tourism Association.
In addition, the installation of banners andhanging curtains helped to liven up the opening of
the Sekigahara Memorial Museum by the whole
Seino block.

 Arts and culture support project Scholarship program for students from Gifu Prefecture•

We started the scholarship program in2008 and implemented it for the 13thtime this fiscal year.

•

We recruited 10 new scholars this year.

The total number of scholarship recipientshas reached 194 people.
Scholarship program - 2020 scholarship
recipients

A branch employee in armor talks
with a customer

SocialPartnershipSocialCooperation with the development of the “Gifu Mokuyukan,” theGifu Prefecture forest education center
Cooperation with the 30-year vision for Gifu forest education
In order to pass on to the next generation the culture of coexistence with trees that
Gifu Prefecture is proud of, the prefecture established Gifu Mokuyukan as acomprehensive base where people of all ages can become familiar with forests andtrees and experience a connection with them.
The Bank cooperated with the development of the
facility based on the “Comprehensive Agreement on
Creation of Forest Resources and Gifu’s Education
for Forest” concluded with Gifu Prefecture.
This facility is being used widely by the region as abase for promoting “Gifu’s forest education” that
supports the child-rearing generation.

Partnership

Participation in demonstration testing of a ridesharing service
Cooperation with a new transportation system developed by local
government
While the aging of society is advancing, increases in“shopping refugees” and “medical refugees” whofind it difficult to attend hospital by themselves areconcerning.
In order to solve such social issues using CASE and
MaaS, we co-sponsored as an area sponsor the“Choisoko Kagamihara,” a new transportation
system developed by the local government.

A forest education space atGifu Mokuyukan

This is contributing to the creation of a sustainable
society by creating new value through CASE andMaaS.

A stop has been established at Higashi
Kakamigahara Branch.

27

SDGs and ESG~ Environment and governance ~Environment

Environmental conservation activities

Participation in regional environmental activities and businessactivities
Participation in regional volunteer
activities

Forest conservation activities incooperation with prefectures andtowns

Environmental beautification activities around
Hill of Humanity Park (The Chiune Sugihara
Memorial Hall)

Forest conservation activities in the Juroku
Bank’s Forest “Mitake”

Environment

Environmental conservation activities

Investment in ESG bonds
We are supporting efforts for a sustainable society through investments in
ESG bonds
We are investing positively in corporate [Recent investments in ESG bonds]
bonds limited to projects that are
Investment
NumberTotal
expected to contribute to a sustainablefiscal yearof cases
amountsociety, such as renewable energy
business and social infrastructure
900 million
FY20182
development.
yen
We will continue our efforts aimed at
1.9 billion
the realization of a sustainable society.
FY20193
yen

FY202010

10 billionyen

We established a Management Advisory Council (2 committees)as an advisory body to the Board of Directors

Ensuring diversity in the composition of
the Board of Directors
Initiatives such as a ratio of outside directors of one-third or more
and the appointment of female directors

We are ensuring transparency and fairness in the decision-making of theBoard of Directors.

Waitingfor release
Ensuring
the diversityof the Board of Directors andrealizing its optimal scale

Each committee is chaired by an outside director, and a majority of their 5 members areoutside members. Each committee provides advice on the following matters for consultation.
Compensation and Others Advisory
Human Resources Advisory Committee
Committee

Following the General Meeting of Shareholders of June 2020, theBank welcomed its first female director and made 3 of its 9 directors
outside directors. This will further strengthen governance and ensure
diversity, including the promotion of female advancement.

Governance

Chair
Members

Strengthening of corporate governanceOutside director
Outside director 1 person
Inside directors 2 people
External expert 1 person
Details of consultation• Matters concerning the determination ofcandidates for director• Matters concerning the determination ofcandidates for auditor• Matters concerning the selection and removal of
executive directors, etc.

Chair
Members

Outside director
Outside director 1 person
Inside directors 2 people
External expert 1 person
Details of consultation• Matters concerning the compensation etc., of
directors• Matters concerning the evaluation of theeffectiveness of the Board of Directors• Other important management matters

Governance
GovernanceOutside directors

Prior to the General Meeting of
Shareholders (9 people)
Internal 7 : Outside 2

Following the General Meetingof Shareholders (9 people)
Internal 6 : Outside 328