The Juroku Bank
29th Financial Results Briefing[Fiscal year ending in March 2017]

May 31, 2017

(TSE Code: 8356)

Table of Contents
Section I

Section II

Overview of Financial Results for FY3/17

14th Medium-Term Management Plan

Overview of financial results for FY3/17

・・・

4

Summary of the 13th medium-term management plan ・・・ 13

Key data (deposits, etc.)

・・・

5Overview of the 14th medium-term management plan ・・・ 14

Key data (loans)・・・ 6

Key data (individual client assets on deposit) ・・・ 7
Key data (marketable securities)

・・・ 8

Credit costs and non-performing loans

・・・

Capital policy

・・・ 10FY3/18 earnings forecasts

・・・ 11Strategy mapping and numerical targets

・・・ 15Six basic strategies

・・・ 16

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

2

Section I: Overview of Financial
Results for FY3/17

Overview of Financial Results for FY3/17~Consolidated and non-consolidated~▼Non-consolidated
No
1
2
3
4
5

Calculation formula
Gross operating profit[3+4+5](Core gross operating profit)[1-6]
Net interest income
Fees and commissions
Other operating profit(Unit: 100 million yen)
Change▼Consolidated

FY3/16

FY3/17

711
(651)
572
68
69

567
(616)
550
56
△39

△ 144
(△35)
△ 22
△ 12
△ 108

633
(683)
551
98
△15

(year-on-year)

FY3/17

6

Gains / losses on JGBs and other debt
securities

59

△49

△ 108

△49

7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

Expenses
Personnel expenses
Non-personnel expenses
Taxes
Net business profit[1-7]
Net core operating profit[2-7]
Net operating profit[11-15]Credit costs[15+16-17-18-19]
Provision of general loan-loss reserves
Write-downs of non-performing loans
Gain on reversal of loan loss reserves
Gain on collection of written-off loans
Gain on reversal of contingent loss
Gains / losses on equities
Other extraordinary gains / losses
Investment trust financing expenses
Ordinary profit[11-14+20+21-22]
Extraordinary gains / losses
Net income before taxes[23+24]
Total income taxes
Net income[25-26]

516
290
198
27
194
135
205
28
△ 11
39
0
1
23
0
190
△4
186
63
122

511
285
197
28
55
105
55
△28
‐
8
37
0
‐
27
8
0
119
△2
117
26
91

△5
△5
△1
1
△ 139
△ 30
△ 150
△56
11
△31
37
0
‐
26
△15
0
△ 71
2
△ 69
△ 37
△ 31

547

*Net income from shareholders of the parent company

Overview of non-consolidated results▼Gross operating profit
Gross operating profit fell by 14.4
billion yen year-on-year to 56.7 billion
yen, due mainly to a decline in “gains/ losses on JGBs and other debt
securities” as a result of review on themarketable securities portfolio.

▼Ordinary profit
85
135
85
△24
‐
8
33
0
27
7
0
145
△2
143
34
*100

Net business profit fell by 7.1 billion
yen year-on-year to 11.9 billion yen
despite a decline in “non-personnel
expenses” and an increase in “gains /losses on equities.”▼Net income
Net income totaled at 9.1 billion yen.

All For Your Smile.

4

Key data (deposits, etc.)
The amount of total deposits grew by 2.2% with deposits from individuals increasing solidly, and deposits frombusinesses also made a positive turn, while efforts were made to reduce fund procurement costs.

▼Transition in deposits(Unit: 100 million yen)

Indivi

Busin

duals

esses

53,874▼Deposits by region(Unit: 100 million yen)

Public-sector, etc.

53,502

Gifu

Aichi

Prefecture

Prefecture

Others54,686

△231

+809

△498

+331

+380

+607

+213

+804

FY3/15

FY3/16

FY3/17

FY3/15

FY3/16

FY3/17▼Transition of average contract interest rates for month of yen deposits(Unit：％)

The acquisition of fund inflow pipelines, e.g. salary /pension remittance accounts, solidly increased fluid
deposits, achieving an increase in deposits fromindividuals.
Deposits from businesses also grew despite scaling
down fund procurement spending. By region, deposits
in Aichi Prefecture achieved an upturn.

FY9/14

FY3/15

FY9/15

FY3/16

FY9/16

FY3/17All For Your Smile.

5

Key data (loans)
The total amount of loans grew 2.4% to top 4 trillion yen, thanks to a solid increase in personalloans and recovery in loans to SMEs.
▼Transition of loans by sector
Businessloans(Unit: 100 million yen)

38,656+779

Personalloans▼YoY change in business loan balance by company size

39,435+969+1,011

+966

△2

+134

FY3/16

FY3/15(Unit: 100 million yen)

Public-sector

40,404▼Annualized growth of loan balance by region(Unit：％)

Aichi

Prefecture

Prefecture

FY3/15

FY9/15

FY3/16(Unit: 100 million yen)

FY9/16

FY3/17

FY3/17

Solid performancein personal loans

SMEs

Individuals

Public-sector loans▼Transition of home loan balance by region

13,070FY9/14

FY3/16

Secondconsecutive yearof growth for
SMEs

Large / mid-size
companies

FY3/17

Gifu

Businesses =Large / mid-sizedcompanies+ SMEsFY3/15

FY3/15

Gifu

Aichi

Prefecture

Prefecture

Others+1,256

14,326 +1,108+1,041

+903

+195

+191

FY3/16

15,434

FY3/17All For Your Smile.

6

Key data (individual client assets on deposit)
The amount of individual client assets on deposit rose by 67.1 billion yen to 4,344.4 billion yen.

▼Transition of investment- and insurance-related fees and commissions▼Transition of individual client assets on deposit(Unit: 100 million yen)

(Unit: million yen)

Balance of individual
deposits

42,357

Investment-related
fees andcommissions

Insurance-related
fees andcommissions

FY9/15

FY9/16

Balance of other client
assets+416 42,773

+671

+36

+64

43,444

FY9/14+607+380

FY3/15

FY3/16

FY3/17▼Transition of the balance of other client assets on deposit(Unit: 100 million yen)

FY3/15

FY3/16

FY3/15

FY3/16

FY3/17Year-onyear

(A)

(B)

(C)

(C)-(B)

Investment trust

1,868

1,761

1,656

△105

Personal pension
insurance, etc.

4,241

4,708

4,952

244

552

228

153

△75

6,662

6,698

6,762

64

FY3/17

Public bonds
Total

All For Your Smile.

7

Key data (marketable securities)
The proportion of foreign bonds and long-term Japanese government bonds in the portfolio was
reduced to secure flexibility and mobility in future fund management.
▼Transition of the balance of marketable securities(Unit: 100 million yen)Japanesegovernment
bonds

SharesOthers17,958
16,626△4,52913,429△2,489△652

Fund management environment in FY2017+43+2,158△2,084
FY3/16

Risk-distributed

リスク分散運用
fund management
FY3/17▼Valuation gains and losses for marketable securities(Unit: 100
million yen)

Valuation gains /債券評価損益losseson bonds

Maximize revenues within the scope of risk tolerance.
Pursue income yield and capital yield from mid-term perspectives.
Distribute risks to optimize the risk – return balance.
Maintain a certain level of fluidity to dynamically address any
change in market trends.

 Low interest level despite the initial outlook of an upturn from the global trend of
low interest rate amidst concerns of U.S. interest hike and the scale-down of financial
deregulations in Japan / Europe.

△173

FY3/15▼Basic policy of fund management in FY2017

Valuation gains /losses on shares

Make use of stable inverse correlation
between interest rate assets and risk assets(shares, etc.) to control the risk of interest rates rising.

Valuation gains / losses onother securities

1,099
921
670
Retain bonds, shares, etc., which are in stable inverse correlationin the mid-term, in a way that has equal level of risks.
Focus mainly on bond yields (income yield + rolldown yield) while
covering a decline in bond values, attributable to interest rate hike(expansion of valuation losses) with the increase in risk asset values(expansion of valuation gains).

FY3/15

FY3/16

FY3/17All For Your Smile.

8

Credit costs and non-performing loans
The ratio of non-performing loans dipped below 2% at 1.97% as of the end of March 2017.
▼Transition of non-performing loans▼Transition of credit costs(Financial Revitalization Law basis)(Unit： 100 million yen)
H27/3
FY3/15

FY3/16
H28/3

H29/3
FY3/17

28

28

△28

△15

△11

△0

43

39

8

-

-

0

Provisions for specific loan – loss reserves

35

29

-

Losses on bulk sales

4

4

5

Other

3

6

2

-

-

37

④ Gain on collection of written-off loans

0

0

0

⑤ Gain on reversal of contingent loss

0

-

-

Credit costs (①+②－③－④－⑤)① Provision of general loan – loss reserves(gain on reversal)② Write-downs of non-performing loans
Loans written off③ Gain on reversal of loan loss reserves(Unit: 100 million yen)

1,122

▼Write-downs of non-performing loans by sector(Unit: million yen)

Manufacturing

FY3/15

FY3/16

Construction

Loans to bankrupt and quasi-bankrupted borrowers
Doubtful loans(Unit：％)
Loans requiring monitoring
Non-performing loan ratio

1,038

FY3/17

Real estate
Retail /wholesale

804

Services /otherFY3/15

FY3/16

FY3/17All For Your Smile.

9

Capital policy▼Dividends
Offering the 140th anniversary commemorative dividends in mid-year in FY2017, and planning a dividend increase of 1 yen per share

9/15 Term

3/16 Term

9/16 Term

3/17 Term

9/17 Term (plan)

3.5 yen

3.5 yen

3.5 yen

3.5 yen

4.5 yen (+1.0 yen)

Dividend pershare

140th anniversarycommemorative dividend▼Transition of equity▼Improvement in quality of capital

The equity ratio as of the end of March 2017(consolidated) stood at 9.88%, or 8.84% on a full
implementation basis.

・Subordinated financing was reduced by 48 billion yen(from the end of March 2011 to the end of March 2017)
・Eight billion yen of subordinated financing was repaid in advance in FY3/17.

(Unit：％)(Unit： 100 million yen)
EquityEquity ratio

5,000
9.65

9.64

4,000

3,000

8.59

8.61

Full implementation basis

10.34

10.35

9.22

8.57

12

8.87

8.84

Excluding preferred shares / subordinated financing
Subordinated financing

3,000

9.88
10

8.83

Transition of equity (Non-consolidated)(Unit: 100 million yen) Preferred shares

2,500

2,525 2,393

2,785 2,814 2,710 2,739 2,729
200
200

8

2,000
6

2,000
2,739

2,789

2,729

3,000

3,057

2,988

1,000

FY3/17(Consolidated)

FY9/16(Consolidated)

FY3/16(Consolidated)

FY3/17(non-consolidated)

FY9/16(non-consolidated)

FY3/16(non-consolidated)

0

4

1,500

2

1,000

0

500

1,945

2,195

2,500

2,304

Base II
580

0

1,963

H23/3
FY3/11

2,559

2,629

Basel III

430

390

310

210

180

100

FY3/12
H24/3

FY3/13
H25/3

FY3/14
H26/3

FY3/15
H27/3

FY3/16
H28/3

FY3/17H29/3

Due to be repaid on December 21, 2017
All For Your Smile.

10

FY3/18 Earnings Forecasts~Consolidated and non-consolidated~▼Non-consolidated
No(Unit: 100 million yen)Calculation formula FY3/17 (actual)1

Gross operating profit

2(Core gross operating profit)3

Net interest income

45

FY3/18(forecast)

FY3/18(forecast)

Change (YoY)[3+4+5]

567

599

32

[1-6]

(616)

(589)

△27

550

503

△47

Fees and commissions

56

78

22

Other operating profit

△39

18

57

△49

10

59

511

495

△16

Personnel expenses

285

279

△6

9

Non-personnel expenses

197

187

△10

10

Taxes

28

29

1

6
7
8

Gains / losses on JGBs and other debt securities
Expenses11

Net business profit

[1-7]

55

104

49

12

Net core operating profit

[2-7]

105

94

△11

13

Net operating profit[11-15]

55

117

62

14

Credit costs[15+16-17-18-19]

△28

16

44

15

Provision of general loan-loss reserves

‐

△13

△13

16

Write-downs of non-performing loans

8

29

21

17

Gain on reversal of loan loss reserves

37

-

△37

18

Gain on collection of written-off loans

0

0

0

19

Gain on reversal of contingent loss

‐

-

‐

20

Gains / losses on equities

27

10

△17

21

Other extraordinary gains / losses

8

12

4

22

Investment trust financing expenses

23

Ordinary profit

24

Extraordinary gains / losses

25

Net income before taxes

26

Total income taxes

27

Net income[11-14+20+21-22][23+24][25-26]*Net income from shareholders of the parent company▼Consolidated

0

0

0

119

110

△9

△2

1

3

117

111

△6

26

29

3

91

82

△9

Full-year forecast for FY3/18▼Non-consolidated
Ordinary profit¥11 billion

Net income¥8.2 billion▼Consolidated
Ordinary profit¥13.5 billion

Net income attributableto owners of the parent¥9 billion

135

*90
All For Your Smile.

11Section II: 14th Medium-Term
Management PlanSummary of the 13th Medium-Term Management Plan
Main topics
Corporate value
13th Medium-Term Management Plan
Customer-oriented approach in improving service quality⇒ Strengthening contact points with customers⇒ Reforming business operations from customers’ perspectives⇒ Growth strategy centered around Aichi

12th Medium-Term
Management Plan

Outcome・Achieving 4 trillion yen in loans with Aichi-centric strategy● Emergence of merger’s
cost synergy

・Opening offices in Singapore and Bangkok
・Opening two currency exchange shops● 50 branches in Aichi

・All-day fee-free ATMs for Juroku transactions● 5 trillion yen in deposits

April 2011

14th Medium-Term
Management Plan
launched

・Launching Holiday Juroku services for public holidays

April 2014

April 2017

Numerical targets and achievement status
Targets

Start of plan

Achievement
statusGrowthpotential

Deposit balance¥5,600.bn¥5,155.4bn¥5,468.6bn(customer base)

Number of retail borrowers

100,000+

97,780112,308

Earning
capability

Net income¥10bn¥12.3bn¥9.1bnCore equity ratio

8.8％+

8.66％

8.57％

Ratio of credit cost to total loans

Less than 0.2%

0.09％

△0.07％

Financialsoundness

All For Your Smile.

13

Overview of the 14th Medium-Term Management Plan
Title

All For Your Smile♪ ~2nd Stage~

PeriodPeriod: From April 2017 to March 2020 (3 years)

Long-term vision

Financial group that is needed by customers and grows with customers•

Basic policy

Business model

Action base•

Ensuring customer-oriented approach
Succeeding the stance of the 13th Medium-Term
Management Plan
Exploring core business operations deeper and taking on fresh income-generating opportunities• Responding to changes in external environment speedily

Transforming the business model to create a positive cycle of“Contributing to the growth of customers and local economy” and“Building a stable and indefinite revenue-generating structure to support local communities”

Engagement First
Prioritizing the establishment of a strong trusting relationship with customers

Six strategies for fulfilling the plan
All For Your Smile.

14

Strategy mapping and numerical targets
Strategy mapping
Expanding contact points with customers and offering solutions aboveand beyond expectations

Rationalizing / streamlining
Improving management
efficiency to survive competition

Accelerating business reform
Slimming down head office organization
Achieving efficient branch operation

Improving organizational strength
Helping each employee improve
performanceSales
stance ofsincerely
tackling
customers’
diverseneeds and
tasks



法人

Businesscustomers

・Supporting the improvement of corporate values based on
business viability evaluation
・Offering financial intermediary functions to local SMEs
・Providing support according to their growth stage


Individual
customers

 HR development

Improving problem-solving capacity through bi-directional
communication

Offering goods / services according to customers’ life
stages to explore their needs･Offering consultation functions･Enhancing and expanding goods and services on offer(unsecured loans without involving face-to-face consultation,etc.)Improving channel functions

SME loans

Non-interest
incomePersonal loans

 Work style reform

FY2019 targets
Item
Earning
capability

Growthpotential(customer base)Financialsoundness

FY2016 results

Targets

Net income (consolidated)

¥10bn

¥10bn

Community presence(daily-average deposits +daily-average loans)¥9,350.1bn¥10,000bn

Daily-average deposits¥5,410.8bn¥5,700bn

Daily-average loans¥3,939.3bn¥4,300bn

Equity ratio (consolidated)

8.84％

Around 8.7％

FY2016 result

Target3.0％

5％+Full implementation basis

Long-term targets
Item
Earning
capability

ROE (consolidated)

All For Your Smile.

15

Six basic strategies
Strategy

1Expanding contact points with customers andoffering solutions above and beyond expectations

Strategy

2

Actively getting involved in community tasks

Strategy

Building strategies by region

3

Strategy

Improving fund management capacity

4

Strategy

5

Improving management efficiency to survive
competition

Strategy6Helping each employee improve performance

All For Your Smile.

16

【Strategy １】
Expanding contact points with customers and offering solutions
above and beyond expectations
Full introduction of the activity evaluation system⇒ Substantially revising the previous performance evaluation system

Business model innovation

Overview of the activity evaluation system
 Establishing the Sales Activity Guideline for “activity evaluation” as the basic principles of all sales activities
 Evaluating sales branches qualitatively according to “sales branch activity evaluation criteria”
 Examining the rate of achievement against “key data” in block evaluation
 Introducing the “head office activity evaluation criteria” as the criteria for evaluating the activities of head office
departments in support of sales branch activities based on the sales branch activity evaluation criteria”

営業
店
Sales branches
Sales branch activity evaluation
・Defining the number of items and their balance so that they
are easy to understand for sales branches
・Sales-related items + Administration-related items + Unique
items
・Clarifying subject activities and quantifying evaluation
indicators
・Clearly showing items related to benchmarking

Block

Head office
Head office activity evaluation

Block activity
evaluation

・Focusing on supporting sales branch
activities
・Clearly showing items related tobenchmarking

Key data

Engagement award
Recognizing not only standalone cases but
also good practice activities that an entire
branch has worked on steadily

Evaluating the rateof achievement

Customer-oriented
business administration
All For Your Smile.

17

【Strategy １-２】

Specific details of activity evaluation criteria
Sales branch activity evaluation criteria (excerpts)

Details

No

Item

Department in charge

Activity evaluation criteria

２

Sales stanceSales Management Division / Aichi Sales Division

10

Sales stanceIndividual Customers Sales Department

Establishing a consulting sales structure in deposit asset sales?

21

Sales stanceBusiness Customers Sales Department

Engaging in in-depth dialogs with customers to identify true tasks / needs in offering solutions?

Working on strengthening relationship with clients to turn them into main accounts?

Sales branch activity evaluation criteria (No.10)
Activity evaluation criteria (detail)Attentively listening to customers’ life plan and stance to identify their needs and tasks, and offering products that
help solve the tasks
Using an achievement level checklists (held by all Fas, accounts staff, liaison staff, etc.) for skills and HR
development
Conducting study sessions and leads meetings as appropriate to boost all qualified sales representatives’knowledge level and motivation, while making efforts to offer optimum products
Setting and managing targets that suit own branch’s characteristics, market and actual conditions concerning
deposit assets to maintain / boost branch workers’ motivation and achieve customer satisfaction

Evaluation indicators<Voluntary targets on deposit asset sales and theirresults>
Evaluating difficulty, progress and PDCA
<Skills and HR development>
Evaluating the status of utilizing the achievement level checklist<Post-sales follow-up>
Evaluating the number of clients with deposit assets followed up
after sales and the number of seminars held

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Sales branch activity evaluation criteria (No.21)
Activity evaluation criteria (detail)Evaluation indicators

Actively grasping clients’ business succession policy and working with the head office to ensure smooth businesssuccession
Identifying client companies’ retirement benefit / pension scheme and offering a defined-contribution businesspension plan

Number of business succession consultation sheets submitted(evaluating the number of effective consultation cases)

Offering a means of payment clearance other than checks (electronic settlement, batch settlement system)

Number of new electronic settlement transactions

Number of retirement benefit / pension scheme
consultation request forms collected

Accurately grasping clients’ management tasks and needs and providing information about functions, seminars, etc.
Number of information communication tables, etc.
offered by Juroku Bank affiliates
・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

All For Your Smile.

18

【Strategy １-３】
Offering solutions above and beyond expectations (Supplier search service ①)▼Outstanding results based on Juroku Bank’s original benchmark
Buyer

Buyer

Juroku Bank finds buyers andidentifies their needs / tasks.
Past results

Buyers screen documents to selectsuppliers.

Each buyer receives proposals
from multiple suppliers.

A business deal is struck highly
accurately.

JurokuBank

Supplier

Cumulative number ofbusiness discussions

2,000

Cumulative number ofbusiness matching
meetings arranged

1,500

43

1,000

Catering to thefollowing types ofsupplier search needs

Supplier

180

3,000
2,500

Juroku Bank uses its network ofbranches to identify suppliers thatmeet the needs.

Supplier
Entry(trademark registered in January 2017)

Requesting businessmeetings with potential
suppliers

Supplier Search Service

Seller

500

3

0

31
H24/3
FY3/12

16
211
FY3/13H25/3

Finding a supplier capable of handling difficult processingworkArranging multi-vendor procurement with two / three
suppliers

Finding a supplier capable of handling small-lot production
or prototype production



Finding a flexible supplier located nearby

Finding a new development partner



Finding a partner to enter into a new business field

134
78

2,884

150
120

2,853

90
60

1,981

30

1,044
FY3/14
H26/3

180

0
H27/3
FY3/15

H28/3
FY3/16

FY3/17
H29/3

All For Your Smile.

19

【Strategy １-３】
Offering solutions above and beyond expectations (Supplier search service ②)▼Organizing value-added business matching meetings featuring prominent buyers
Sample entry form

Main buyers that have used the service inrecent years

ビジネス商談会 in ○○社 航空機器事業部

Collaborating with the Ministry of Economy,
Trade and Industry as well as local
governments【名古屋商工会議所】と十六銀行は、特長ある技術や商品を有する地域企業の新たな販路開拓や製品開発を支援するため、○○社 航空機器事業部との商談会を開催します。今回の商談会は、一般的に行われているビジネ
スフェアのように展示ブースを設ける形ではなく、中小企業が大手企業に対して、自社の技術や製品、サービス等を直接アピールいただける「個別商談会」です。

■

Offering business matching opportunities

商談会の流れサプライヤー企業の募集（エントリー）
バイヤー企業による選抜
商 談 会

■

平成２●年●月●日（水）Company K

Manufacturing titanium materials and parts

Company A Manufacturing equipment（１社ごとに時間割を設定しますので、開始時刻は個別にご連絡いたします）
会場

株式会社 ○○社 航空機器事業部〒○○-○ ○○市○町１５

バイヤー企業株式会社 ○○社 航空機器事業部〒○○-○ ○○市○町１５
事業内容：分析、計測機器、医用機器、航空機器、産業機器の製造
航空機器事業部は、フライト・コントロール・システム、エアーマネジメント・システム、コックピット・ディスプレイ等を製造しています。

内容

自社の技術や製品、サービス等をアピールする「個別面談」形式で実施します。

募集対象企業

バイヤー企業が提案を希望する事業分野の商品・商材・技術等を有する、以下の企業さま
・十六銀行のお取引先企業さま・名古屋商工会議所の会員企業さま※事前のエントリーが必要です。
※商談会参加企業は、お申込時にご提出いただいたエントリーシートに基づき、バイヤー企業が選考し決定します。

商談希望ニーズ

裏面のとおり

参加費

無料

募集企業数

１０社程度

申込方法

エントリーシートをご記入のうえ、会社案内・設備一覧を添付し、十六銀行各支店にお申込みください。
※エントリーシートは、十六銀行ホームページからダウンロードできます。

申込期限

平成２●年●月●日（金）備考

面談のみの商談会ですので、ブース等のご準備は不要です。
参加企業の希望分野と合致しない場合、事前にお断りすることがございます。
本件に関するバイヤー企業への直接のご連絡はご遠慮ください。

Results of monitoring and analyzing
the trading status of participatingcompanies

Company S Manufacturing flight control systems

Company M Aircraft engine parts

商談会概要

日時

(Examples)

Analysis on the suppliersearch service

Company B Manufacturing turbine engines

1. Loan balance is durable,
maintaining or increasing the level.
2. Loan balance tends to increase
when the number of participations
is high.

Business meeting with aircraft engine manufacturers

Secondary effects
1. Allowing buyer staff in charge
to gain in-depth understandingof suppliers, thereby boosting
their skills
2. Allowing buyer companies toaccumulate information about
supplier evaluation, which canbe utilized for credit judgment

All For Your Smile.

20

【Strategy １-４】

Offering solutions optimized to customers’ stages▼Performance of business startup support desk
(Unit: million yen)

1200
1000
800
600
400
200
0

Amount of loan execution

Number of loans executed

Business startup support desk
established in February 2015

(Unit: Case)▼Strengthening our support structure in ASEAN nations
Office to be set up in Hanoi in February 2018

100

China
Shanghai Representative OfficePartnership:
Bank of Communications, Bank of
China, Industrial and Commercial
Bank of China

80

94

60
1,061

56

40

293
H28/3
FY3/16

20

India

0

PartnershipState Bank of India

H29/3
FY3/17

MyanmarOverseas offices
South Korea

Business partners
Partnership
SBJ Bank (Shinhan Bank’s
Japanese subsidiary)Hong Kong
Hong Kong
Representative
OfficeJuroku Bank Overseas Support
Department

Partnership
Ayeyarwady Bank

▼Performance of M&A fees
(Unit: million yen)

Actual fees collected

350
300
250
200
150
100
50
0

Number of M&A cases
21

15
4

3

72

39

FY3/15
H27/3

FY3/16
H28/3▼Business matching fees
104

Vietnam
Malaysia

Singapore0
FY3/15
H27/3

FY3/16
H28/3

FY3/17
H29/3

Indonesia

Singapore
Representative OfficePartnershipBank Negara Indonesia▼Number of overseas suppliers by country(As of the end of March 2017)
Country

50

PartnershipBank for Investment andDevelopment of Vietnam
Australia and New Zealand Banking

Partnership
CIMB BankCIMB Investment Bank

88
67

Partnership
BDO Unibank

Bangkok Representative OfficePartnership
Kasikorn Bank

100

FY3/17
H29/3

Philippines

Thailand5(Unit: million yen)

100

25
20

301

Hong Kong office to be shut downby the end of the year

(Unit: Case)

Number of suppliers

Number of suppliers

China

534 Malaysia

46

Hong Kong

72 Philippines

43

India

32 Singapore

45

Thailand253 Myanmar

11

Indonesia

115 ASEAN (other)13

Vietnam

134 ASEAN total

660

Total

1,298

All For Your Smile.

21

【Strategy ２】

Actively getting involved in community tasks ~Strategic alliances~• Hokkoku Bank
• Nagoya Bank • Fukui Bank
• Hyakugo Bank • First Bank of Toyama
Tie-ups with local banks of the threeneighboring prefectures in the Tokai region
and local banks of the Hokuriku region• Hiroshima Bank
• Hokkoku Bank
• San-in Godo Bank

Cooperation with regional banks
on the Chance project (regionalbank integrated services)

Diverse strategic
alliances• Joint M&A seminars held by three banks• Joint corporate briefing sessions held by
three banks• Joint business meeting• Collaboration agreement for the project torevitalize the tourism industry in the Tokaiand Hokuriku regions(Six Stars Tourism Project)

•
•
•
•
•

Tie-up in the IT field, mainly in computer systems
Establishment of the Infrastructure Council for
project financing
Launch of the Chance FinTech Lab
Establishment of the energy fundWide-area collaboration for offshore businessassistance

Chambers of commerce
and industry andtrade associations

Regional
financial institutions

Collaboration• Deloitte Tohmatsu• Nomura Securities• Mebuki FG• Hyakujushi Bank
• Nanto Bank
• Yamaguchi FG

Universities andresearch institutes

Mass media
Local
governments

Business
community• Tono Shinkin Bank
• Japan Agricultural Cooperative
MEGUMINO

Cross-sector tie-ups for fostering
venture businesses

Tie-ups with partners in otherareas of the financial sector• Administration of the venture support
organization, NOBUNAGA21• Seminars on revitalizing local economy• New Business Plan Support Fund
• First Stage grants for business entrepreneurs• Tie-up with Tono Shinkin Bank to revitalize
local communities• Support for the project, Gifu, Seiryu no Kuni
(the Land of Clear Water) Food and Agriculture
Trade Fair
• Mutual HR exchange with the Japan
Agricultural Cooperative MEGUMINO
All For Your Smile.

22

【Strategy ２】

Actively getting involved in community tasks▼Support for local governments’ strategy for vitalizing towns, people and jobs, etc.
Support to high school students for product development andmarketing of Arare rice crackers(Signing ceremony with the Gifu Prefectural Commercial High School )<Specific content>
Targeting commercial highschool students who haveestablished the corporate
entity(1) PR at a food trade showin Hong Kong(2) Inter-cultural exchangewith international students(3) Visit to overseas factories

Development of young future leaders for regional regeneration▼Revitalizing local economy through support for regional companies
Marketing support for Gifu’s local produces at Nagoya
Mitsukoshi department store
This collaboration with adepartment store was a raretie-up of this kind even on anational level.
The eventattracted over 20,000 visitors
over four days.
The
Mitsukoshi – Isetan Group is
to sell the products based on
the project stance andconsumers’ response.

(Market event at the Aeon Mall Tokoname)Presenting Touch-and-Talk communication sheet forinternational visitors to multiple local governments
Situational
phrasesforrestaurants, accommodation,
shopping and taxis in English,
Korean and Chinese(Communication using the sheet in Takayama City, Gifu Prefecture)

Inbound tourism support for welcoming visitors

Support for the sale of Gifu’s local produce withNEXCO Central Japan x Gifu University
This was a rare initiative of arranging abusiness talk session so that 45 local
businesses
could
promotetheirmerchandizes, e.g. food items andhandicrafts, to tenants of highway service
areas (SA) and parking areas (PA) in theprefecture.
Opinions from university
students were gathered in a workshop
ahead of the event to enhance therelevance of the session.

(Workshop held prior to the business talk session)

Unconventional cross-sector collaboration for activity supporting local companies
All For Your Smile.

23

【Strategy ５】

Improving management efficiency to survive competition~Rationalizing and streamlining~
Improving management efficiency

Building an efficient branch operation
structure for sales reform Accelerating business reforms Eliminating hardcopy applications / submissions and the use ofseals Expanding administration concentration at the head office(eliminating back office administration)
 Eliminating the use of paper (and the use of safe / document
storage) Streamlining loan / public relations duties for faster work

Single-line completion process
Concentration of back office
work at the head office Streamlining branch operations in view of demographics
 Adopting branch operations specializing in sales (administration
with minimal personnel)
 Considering opening branches in regions of anticipated growth

Reinforcement of sales
workforce and expansion ofbusiness hours

 Streamlining head office organization (organizational reform)
Further optimizing personnel allocation and workforce▼Actual and planned figures of amended OHR

Top-line reinforcement(Unit： %)Amended OHR

90.00
80.00

82.9
79.2

Toward 60％

OHR improvement

74.6

70.00
60.00

FY3/15(actual)FY3/16(actual)FY3/17(actual)FY3/18 (plan) FY3/19 (plan) FY3/20 (plan)
All For Your Smile.

24

【Strategy ６】

Helping each employee improve performance▼HR education reform▼Work style reform

Two-week new recruit training program ⇒ Expanding it to 3 months•••

Addressing diversifying bankoperations
Reinforcing workers capabilities
prior to assignment
Enhancing stress resistancethrough trial and error(Zazen meditation training)▼Empowerment of women and other diverse human resources
Recruiting high-performing non-Japanese workers fororganizational revitalization

Career-course new graduate recruits for FY2016(Left) Ms. Chu of the head office’s sales division(Right) Mr. Cho of the Nagoya sales department

Forcible computer shutdown at the end of business hours
Computers are forcibly
shut down after an alert
message is displayed
every Wednesday, thesecond and third Friday
of each month andduring Early Finish week,
targeting some 1,000
head office workers.

Publication of overtime data and ranking on the Intranet
The visualization
approach makes
managers and the restof the workforce keenly
aware of the need to
cut back on overtime.

Av erage leav ing w ork time 時間外勤務時間数
Over time hours
ＳＡＭＰＬＥ 平均退行時刻
DeputyBranchnameRanking
Per person
Time
Male employee 一般女性 一人当たり
Ranking
一般男性
店名
時刻
順位
代理
順位
Ａ Branch
支店
18:47
17
26:45
7:46
10:56
25
Branch
Ｂ 支店
18:47
17
24:23 16:23
5:08
12:26
35
Branch
Ｃ 支店
19:05
40
28:33 16:55
3:21
11:21
27
Ｄ Branch
支店
19:20
76
28:42 21:20 15:12
20:17 123
Ｅ Branch
支店
19:50
137
33:05 24:30 10:47
18:45 103
Ｆ Branch
支店
17:59
3
11:50
2:15
4:10
4
Ｇ Branch
支店
19:33
112
35:03 24:08 19:11
25:34 148
Ｈ Branch
支店
19:25
91
27:05 21:45 16:23
20:58 128
Female employee

Shortening total working hours, streamlining work
operations and ensuring correct work-life balance▼Numerical targets for women’s empowerment and actual status (vs. FY2014)① 87 women in assistant management positions or above ⇒ To be doubled to 174 women by the end of FY2020⇒ 114 women as of the end of March 2017 (+27 women in 2 years, up approx. 30%)
② The ratio of women in leader positions or above to be raised to 20% by the end of FY2020 ⇒ 15.0% as of the end of March 2017 (240 women / 1,355 men)
* “Leader positions or above” refers to those in assistant management positions plus administrative leaders and FA leaders.

<As of April 3, 2017>

All For Your Smile.

25

Thank you for reading.

Improving
management
efficiency tosurvivecompetition

Ensuring customeroriented approach

Taking on newrevenue-generating
opportunities

Addressingchanges ofexternal
environment
swiftlyLong-term vision

Expanding contact
points withcustomers
Offering solutions
above and beyond
expectations

Engagement
First

Basic Policy
Exploring corebusiness operations
deeperContributing to
the growth ofcustomers andlocal economy

Building
strategies byregionHelping each
employee
improveperformance

Positive
cycle

Actively getting
involved incommunity
tasks

Improving fundmanagement
capacity

Building a stable
and indefinite
revenue-generating
structure to support
local communities

Financial group that isneeded by customers
and grows withcustomers