The Juroku Bank

Financial Results[Fiscal year ended March 2020]

May 27,2020
TSE・NSE partial listing（8356）

Contents
SectionⅠ Overview of Results for FY 2020/3
Overview of Results for FY 2020/3

4-7

Summary of 14th Medium-termManagement Plan
Summary of 14th Medium-termManagement Plan

9-10

Initiatives for COVID-19
Initiatives for COVID-19

12-13

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

Section Ⅱ

Overview of 15th Medium-termManagement Plan

External environment recognition

15

Initiatives for environmental changes
and social demands

16

Overview of 15th Medium-termManagement Plan

17-18

Three strategies・Numerical Target

19

Engagement

20

Business reform

21

Operation process・channel reform

22

Human resources・organization reform

23

Initiatives in growth fields

24

Expansion for new business throughalliance25

Initiatives for SDGs

26

Capital Policy

27

ESG activities

28-30
2

Section Ⅰ
Overview of Results for FY 2020/3

3

Overview of Results for FY 2020/3（Unit: 100 million yen)

Non-consolidated

2017/3

2018/3A

2019/32020/3

B

C

C-A

C-B

Core gross operating profit

616

589

590

626

10

36

Net interest income

550

486

498

519

△ 31

21

Fees and commissions

56

92

96

106

50

10

Other operating profit

10

10

△4

1

△9

5

511

487

443

421

△ 90

△ 22

Personnel expenses

285

270

242

223

△ 62

△ 19

Non-personnel expenses

197

189

174

170

△ 27

△4

Net core operating profit

105

101

147

205

100

58

Net business income

55

69

146

214

159

68

Profit related to securities investment

△ 22

22

20

9

31

△ 11

Profit on JGBs and other debt securities

△ 49

△ 32

△0

8

57

8

27

55

21

1

△ 26

△ 20

Credit costs

△ 28

△5

21

35

63

14

Ordinary profit

119

122

146

185

66

39

Net income

91

93

99

127

36

28

(except profit on JGBs and other debt securities)

ExpensesProfit on equities

Consolidated

2017/3

2018/3A

2019/32020/3B

C

C-A

Non-consolidated earnings
increased in 3 consecutive
years.
Consolidated earnings
increased in 2 consecutive
years.

Overview of nonconsolidated results○Core gross operating profit＋3.6 billion yen (YoY)
・Net interest income highly
increased
・Fees and commissions
increased firmly○Expenses△2.2billion yen (YoY）
・Decreased by continuous
efforts○Profits
Ordinary profit+3.9billion yen(YoY)
Net income＋2.8billion yen(YoY)

Overview of consolidated
results

C-B

Core gross operating profit

683

653

656

705

22

49

Expenses

547

531

494

484

△ 63

△ 10

Net core operating profit

135

121

162

220

85

58

Ordinary profit

145

139

162

194

49

32

Interim net income attributable to owners of the parent

100

99

106

128

28

22

○Profits

・Ordinary profit ＋3.2billion
yen(YoY)・Interim net income attributable toowners of the parent+2.2billion yen(YoY)(*)From the current interim period, a partof the dividend income from insurance has
been offset against premiums paid, andthe prior year's figures have been
4
reclassified.

Overview of Results for FY 2020/3（non-consolidated）
Net core operating profit / Net business income（100 million yen)（100 million yen)

Net core operating profit

250

200

205 214
105
55

101

147 146

V:＋５
R:△１0

V:△０
R:+18

V:△０
R:+３

Personnel
NonOthers
expenses personnel＋9+19
expenses+4

160

tax △1Other interest
income +5
Other operating
profits ＋5

205

140

69

120

0

Fees andcommissions
+10

147

100
17/3

18/3

19/3

20/3

Net interest income（100 million yen)

JPY loans and deposits

55

JPY securities investment

486
27

106
400

78

19/3

Foreign currencies

498
40
76

519

（100 million yen)

46,000

378

377

1.042

Average balance

0.959

1.400

0.912

0.889
42,923

43
96（%)

Average yield

44,000

18/3

19/3

20/3

0.800
0.600

0.000
-0.200-0.40039,137-0.600-0.80038,000
17/3

1.000

0.200

40,841

376

300

1.200

0.400

42,26642,00040,000386

20/3

Average balance and yield of JPY loan

550
500

Securities
interest+17

R:Yield factor

180

100

600

Loan Depositinterest interest
△4
+3

220

Start of 14th medium term
management plan

150

50

V:Balance factor

240

Net business income
200

Factors to increase or decrease of net core
operating profit-1.000
17/3

18/3

19/3

20/3

5

Overview of Results for FY 2020/3（non-consolidated）
Fees and commissions（100 million yen)

Individual-related

Corporate solution related revenue

Corporate-related

Others130

Fees and commissions
under tranction in
JurokuTT securities
Co.,Ltd.

120

12

110

106

100

92

90
80
70

30

56

60
50

12

13
7

40
30

35

20

（million yen）

96

16,00012,000

8,000

38

14

17

49

52

50

18/3

19/3

20/3

4,000

Foreign currency securities

JPY average yield

Foreign currency average yield

2.572
2.132

2.045

1.886

0.808
4,004

0
17/3

337

1,000

701

JPY securities

13,168Business matching fees

1,500

1,205

30

1,749

M&A fees

296

224

500

325

279

Average balance and yield of securities investment（100 million yen)

Private Placement Bonds fees

0

17/3

Syndicated loans and Commitment fees

2,000

（%)
3.000
2.500

53
144

245

17/3

18/3

1,418

439

446

140
330

364
252
355
19/3

11,0270.708

10,513
0.729

0.968

1.500
1.000
0.500

1,715
18/3

2,282
19/3

2,750
20/3

20/3

Valuation gains and losses of securities（100 million yen)

JPY bonds

900

670

Stocks736

Other securities

757
9

700

565

2.000
9,979

839

500

649

745

689

300

100

0.000
△ 100

552

77
△ 55

50
△ 59

17/3

18/3

59
19/3

17
△3
20/3

6

Overview of Results for FY 2020/3（non-consolidated）
Profit of customer services（100 million yen)80

Net core operating profit per person

Profit of customer services = loan average balance × difference ininterests rates for depositors and borrowers + net income from fees
and commissions－ operating cost（thousand yen）
9,000

60
40

72

20

6,000

36

8,703

0

△ 21

△ 20

3,000

5,667

△ 40
△ 60

△ 74
17/3

18/3

19/3

20/3

Core OHR
82.9

Personnel expenses OHR

82.6

70

Improved drastically(Total △15.8 Points)

30

18/3

46.2

45.8

32.0

32.1

67.1

20/3

18/3

Interim net income attributable to owners of the parent

3.0

41.0

35.7

29.6

27.1

19/3

3.5

3.0

20
17/3

19/3

3.7

ROE（Consolidated)

75.0

60

（%）

Non-personnel expenses OHR

80

40

17/3

ROE（Consolidated）

Core OHR

(%)

50

3,565

0

△ 80

90

3,507

20/3

Owing to increased profit,
ROE improved.
3.1（100 million
yen）

140
130

2.9

120

128

110

2.5
100

99

17/3

18/3

100

106

2.0

90
19/3

20/3

7

Summary of
14 th Medium-term Management Plan

8

Summary of 14th Medium-term Management Plan
Customer oriented activities■Expanded branch opening on holidays（Holiday Juroku Ginan opens）[Position of 14 th Medium-term management Plan]

We will transform our business model to create a positive cycle ofcontribution to the growth of customers and local economies and arevenue structure with stability and permanency to support local
communities.

■Introduction of long-term activity
evaluation
Challenge to
new business area
■Establish of business Succession Office■Asset succession business(inheritance and asset management）■External collaboration(Establish of Juroku Tokai Tokyo securities., Co Ltd.）

Response to changes in theexternal environments■Promotion of operational efficiency（Establish of Operational Reform Division)■Reform of working styles（reduction of overtime work）

Numerical targets of 14 th medium-term management plan
Contents

Before the plan
Actual(2017/3)

Targets for
final FY
(2020/3)

Actual(2020/3)

Net profit(consolidated)

10 billion yen

10 billion yen

12.8 billion
yen

9,350 billion
yen

10 trillion yen

9,950 billion
yen

Deposit averagebalance5,410 billion
yen

5,700 billion
yen5,615 billion
yen

Loan averagebalance

3,939 billion
yen

4,300 billion
yen4,334 billion
yen

Capital ratio(consolidated)

8.84%

Around 8.7%

8.94%

Contents

Before the plan
Actual(2017/3)

Targets for
final FY
(2020/3)

Actual(2020/3)

ＲＯＥ（consolidated）

3.0%

5% or more

3.7％

Presence in local
economy（deposit average balance + loan
average balance）

Domestic Basel III fully
implemented basis

Long-term target＜Factors of achievement to numerical target＞○Implementation of “engagement first”○Penetration of consciousness in our business model9

Summary of 14th Medium-term Management Plan
Increase of core gross operating profit
and improvement of efficiency（100 million yen）

Core gross operating profit

Expenses

Net core operating profit

Core OHR

82.9

650

（%）

67.1

616

589

511

150

487

105

50

101

17/3

Businessreforms

443

18/3

10

19/3

18/3

 Proper interest rate of corporate loans and increase of individualloans Fees and commissions increased by responding customer needs（balance：10 billion yen)（interest :100 million yen）

0.850

Average balance of individual loans
Interest of individual loans
Interest rate of JPY corporate loans

0.820

0.827

（%）

0.900
0.800

160
150
152

152 153

161

0.700
153

140
18/3

0.600
0.500

19/3

20/3

Operation
reforms

Increase of fees and commissions
Corporate-related（100 million yen）

Individual-related
Others

20

22

38%

36

62%

Net core gross operating
profit increased from 19/3
19/3

20/3

 Rationalization ofadministration work
 Shift of personnel to growthbusinesses
Efficient allocation of
personnel/utilization of businessresources

Reduction of sales branchadministration hours:

15△700,000 hours

10
5

Portion of
Improvement

△4

-40

20/3

・Interest rate of JPY corporate loans
・Balance and interest of individual loans

130

△ 27

-20

205

58

1

0

421

147

24

50

626

590

46

44

20

250

140

decrease of expenses

40

450

170

Increase of core gross operating profit

60

90

75.0

350

Net core operating profit (YoY)（100 million yen）

82.6

550

 Net core operating profit improved YoY
 Improved amount of net core operating profit owe toincrease core gross operating profit shared over 60%

Reallocations to

15
10

10

0
17/3〜20/3

measures/growth areas :+ approx.330 personnel（Compared with 2017/3）

10Initiatives for COVID-19

11

Initiatives for COVID-19
Launch of one-stop process to support customer and region
Corporate loans

Individual loans

Interest free loans will accelerate amount of loans related
covid-19.
Number of consultation related covid-19

Consultation for contract change is over 50%.

8,551

Number of contract change related covid-19

118

Number of executed loans related covid-19

1,559

Amount of executed loans related covid-19

Around69 billion yen（Amount of executed interest free loans）

Around
3.5 billion yen（Aggregation period：From March to April ,2020）(As of 25th May 2020）

Demonstrate financial intermediary function
OthersInterest-free loan
 「Loan related covid-19 supported by Gifu prefecture」

Original support loan
 loan for disaster Every support21「covid-19 plan」
 Juroku private bond to support health care worker（First underwriting in May）

 Smooth funding by one-stop process through bank
※Nagoya city (From 13th May）、Gifu city (From 25th May）
 Exemption of fee for contract change, simplify procedure Web seminar related subsidy and benefits
 Various consultation system through branch and Web
supported by experienced ex-branch manager

Equity finance Juroku equity loan
 Future fund with Juroku

Realization of smooth funding

12

Initiatives for COVID-19
Contribution for local community
Through social contributions (donation of medical mask,etc), we tackle the difficulties of covid-19 with local
community.
Donation of medical mask to
local medical institution（※total 26,100 as of end April）

Win over covid-19！！
Juroku Gifu product support project

We donated our stored medical
N95 mask to local medical
institution in Gifu and Aichi.

We set a special corner on our HP
to introduce Gifu product.（First re
gional bank in Tokai area.)

Cloud funding「＃Hidagyu at home」
Teamed up with all Hida (local
government, other institutions),we
coordinated cloud funding to support
farmers. Number of supporters
recorded 2nd in history.

〇period
29th April ~10th May〇supporter
10,002〇funding
amount
114 million yen

Initiatives preventing the spread of infection
Remote work leads the diversity of work style
Online meeting
Internal online meeting
increased.

148
10
March 2020

April 2020

Number of the online meetings

diversity of work style〇total number of days head
office worker worked at home
: ７６3 （※4/13~4/30）

March 2020
difference

As we estimate the increase of credit cost, earnings in
2021/03 expect decrease.

Credit cost

Earnings forecast（100 million yen）

Consolidated
Interim net income attributableto owners of the parent

10.8 billion yen

April 2020

Non-consolidated
net income

staff working at headquarters in time

As each branch eager tothink about useful action forcommunity, each purchasebento(lunch),local items(agricultural products).

Impact on business performance

1,791
410

Purchase local
products

10.5 billion yen△16.0％（YoY）△17.5％（YoY）

Estimation

50
30
10
△ 10

21

35

50

△5
18/3

19/3

20/3

21/3

13

Section Ⅱ

Overview of 15th Medium-term Management
Plan

14

External environment recognition
The environment surrounding regional bank has changed dramatically, and it is difficult to survive
unless we don’t change.
Rural population decline and economic scale reduction■Rapid aging and depopulation of local communities due to the declining birthrate andthe outflow of young people to urban areas.
■Decline in local economy due to decrease in business, in tax revenue, in public investment.
Prefecture

Gifu

Aichi

theme

2020

2030

difference

population

1.97 million

1.82 million▲0.7%

Prefectural gross production

7.6 trillion yen

6.9 trillion yen▲10％

Number of companies

0.71 million

0.51 million▲35％

population

7.5 million

7.35 million▲2%

Prefectural gross production

39.4 trillion yen

35.4 trillion▲10％

Number of companies

2.29 million

1.8 million▲21％※Population ：National Institute of Population and Social security Reserch,"Population projection by Region(2018）"※Prefectual gross production ：Calculated by Juroku from data on "Population decline and future labor shortage" by the institute ofCentral and Socio-Economic Reserch※Number of companies ：Abstract from No.3 2017 "Financial Review", Ministry of Finance,Policy Reserch Institute.

The economy in ourmarket is strong mainlyin the manufacturing.

However future
economic scale
down is inevitable.
We need tochange ourbusiness model.

Rapidly changing financial environment

Evolution of digital technology■minus interest rates and intensifying lending competition,
entry from other industry, reorganization of regional bank.
■Sophistication of customer needs in asset management,
inheritance, business succession, etc.

■Diversification of fund settlement and financing method byFintech.
■Service improvement and business process innovation
through evolution of digital technology.

Transformation of economic structure■Change of consumer behavior after covid-19 and review ofinbound policy.
■Structural change in automotive industry brought by themobility revolution.

Social demand（SDGs,etc.)■Strengthening corporate governance towards sustainable
society■Penetration of work-life balance, promotion of diversity andactive participation of women.

15Initiatives for environmental changes and social demands
Appropriate response to changes in the environment and social demands based on customer needs andregional characteristics

Foster a corporate culture where staff cansay anything and try to act.

Urgent need to develop systems and develop
human resources in line with changes in theenvironment and customer needs.

Various changes within our bank is necessary to respondenvironmental changes and social demands.
Long-term inheritance related demand due toaging.

Source: National Institute of Population and Social
security and Research｢population projection for Japan (estimated in March
2018)

Changes in public awareness【Flow from savings to investment】

Source: Financial service agency｢Promote long-term, funded, diversified investment inhouseholds」

Local employment environment is not inferior tourban areas.

Source：Statistic Bureau of Japan「Labor Force Survey」

16Overview of 15 th Medium-Term Management Plan
15 th Medium Term Management Plan
Period: April 2020-March 2023

Long- term vision

Total finance group that achieves sustainable growth together andcreates the future of the region together.

Customer

Local
community

Employees

Share holder
Investor

Targets for final FY2022
Net profit(consolidated)

12 billion yen

OHR(non-consolidated)

Around 67%

Let’s sayLong-term target
ＲＯＥ（consolidated）

5% or more

Capital ratio(consolidated)

10% or moreThree strategies
Operation andchannel reform

Human resourcesand organization
reformLet’s listen

Business reform
Let’s act

Let’s think
Engagement Cycle

17

Overview of 15th Medium-Term Management Plan
Positioning the three years of the 15 th Medium-Term Management Plan as the shift of business model

Plan

Previous
Long- term
visionConsulting Sales
Enhancing customer
contact points

15th Medium-Term Management Plan〜Engagement to the future〜（Period : April 2020〜March 2023）

Financial group which is requiredby customers, grow withcustomers.

Management Human resource
efficiency
development

14th Medium-Term
Management Plan

Sales transformation andoperational reform
model

Oct 2017
140th anniversary

SDGs

Next Medium-Term
Management Plan
Shine up thebusiness model

15th Medium-Term
Management Plan

Shift of businessmodel
BusinessreformOperation
process・
channelreformLong Term vision
toward the 150th
anniversary

Total financial group that
achieves sustainable growth
together and creates the
future of the region
together.

Sophistication ofgroup management

Finalize the business
modelCore profit structure to
respond environmental changes

Expand businessdomainHuman resources・
organization reform

Consulting promotion system
Strengthening of management
structure

New growth modelof regional bank
Respond toenvironmental changes
Core profit structure

Improvement ofToplineExpand businessdomainDiversification of
profitShift of business
model

Expand business domain
Diversification of profit

Oct 2027
150th anniversary

Business reform
Operation process・channel reform
Human resources・
organization
reform18

Three strategies・Numerical Target
Promote three strategies centered on business reform, and create sharedvalue with local stakeholders
Priority measures
・Profitability ・Growth potential

Business reform
Implementation of deep consulting
Execution of responsibilities towards
sustainable development in region

・Efficiency

・Profitability

Operation process ・channel reform
Restructuring of business process
Construction of optimal channel

・Soundness ・Growth potential

Human resources ・organization reform
Supporting the success of each employee
Advance group management structure

Targets of FY2022

Premise: Covid -19 will
settle down early.

Contents

Targets

・Realization of lifetime trading
・Approach of essential management issue
・Advancement of activity evaluation
・High consciousness and execution of
responsibilities towards local issues
・Improvement of problem solving ability
・Demonstrate leadership
・Digitalization

ProfitabilityNet profit(consolidated)

12 billion
yen

Efficiency

ＯＨＲ

Around67%（non-consolidated）

・Headquarters concentration
・Staffing to growth area
・Optimal channel with customers needs

Long-term target

・Efficiency of channel management

Contents

・Utilization of branch space・Professional development
・System evaluation towards productivity
improvement
・Creating an environment that enables
diversity
・Initiatives in growth fields
・Strengthen group governanceTargets

ProfitabilityＲＯＥ(consolidated）

5% or
more

Sound
ness

Capital ratio(consolidated)

10% ormore

・Initiatives for SDGs

19

Engagement
Engagement of Juroku is designing the future with stakeholders
Conceptual diagram
Staff awarenessEngagement cycle「For」

Customer
JurokuGroup

Local
community
Share holder
Investor

Employees
Convert into

Let’s say

Actively disseminate ideas.
Let’s make a plan up to execution
and proposal with the sympathy ofbosses, colleagues, and customers.
Sometimes argument is necessary
to improve ideas.

Let’s listen

Let’s listen firmly without denying
customers’ and colleagues’ opinion.
By analyzing the current situation,
let’s find the issues and values eachother.

「With」

Staff awareness

Local
community

Customer
JurokuGroup
Employees

Share holder
Investor

From the one-sided provision of bank-oriented value,
strengthen the image of mutual closeness.
Mutual responsibility for the future of the region.

Let’s thinkLet’s think about customers,
communities and ourselves.
Let’s think about improvement
measures,counter measures,proposal contents.

Let’s act

Let’s execute and propose
actually.
Whether it works or not, verify
and utilize next opportunity.

Continuing the engagement cycle is the activity basis of Juroku
bank’s employee towards stakeholders.

Foster awareness of new challenges for entire organization byimplementing an engagement cycle for each individual.
20

Business reform
Convert into 「Market in」concept which originated from customers, andcontribute to the growth of local community and customers through the
deep consultation.
Product Out

Market inConvertThink from the 「Seeds」which we cultivateduntil now.

Supply the items which we can(want to) makeThink from the 「Needs」which we originatedfrom customers

Supply the experiences andservices which customers want

Dialog（approach）

Needs of corporates
・stage of corporate
growthNeeds of local
communities

Share a dream and a future
through dialog

Revitalization
Founding
DeclineMatureSluggish

Expandsales
channels

Individual life plans
and needs

GrowthVenturesupport

StableElderly /Wealth class

Startup Business Securing
support plans workforce

IT

Regional
revitalization

Structualreform

Youth
class

M&A

Car/
Hobby
Marriage House Education
traveltastesAsset formation
class

Happy
old age

Deposit

Human
resources Idea

Network Information Fund Discernment

Raise Greaten Consume Strain

Bequeath

21

Operation process ･ channel reform
Improve productivity by reviewing business process utilizing digitalization,
Providing comfortable services by building an optimal channel system that integrates a wide range ofcustomer needs.

Restructuring of operation process

Wallet+【Theme】 Realization of personnel recruitment and【Theme】 Function expansion
Data marketing

efficiency

Reducedworkload bydigitalization

Creation of
surplus space

Exceeded 30,000 people
registered Wallet+(3 months after launch)

Function
expansion

Loan/Card usage
information

Sophisticationof datamarketing

Creation ofConsulting staff

Customerrefinement by
non-financial
information

Sophistication ofdata marketing by using non-financial information

Creation of staff
Build an effect business structure

BranchNon-face to face channel【Theme】 Compatibility of comfort and expertise【Theme】 Pursuit of convenience, functionality and safety

Comfortabletransaction bycomputerization

Convert toconsulting style
Optimization of
network
Effective use of
surplus space

Utilization of management resources
Demonstrate of consulting functions

WEB complete
transaction

ATM network
optimization
Realization oftransaction
free to timeand place（Payment/loan）

Providing anefficient transaction channel

Realized strategic staffing to demonstrate consulting functions
22

Human resources・organization reform・By developing highly specialized staff and implementing measures to change awareness andbehavior, we maintain an environment where each employee can play an active role
・Enhance the group management system by expanding the business domain and establishing aneffective governance system.

Developing highly specialized staff
・Development of specialized staffs who will
undertake three strategies.
（Consulting/Digital/Management)

Initiatives in growth fields withwhole group
・Maximum utilization of group management
resources to expand consolidated profit.

Expansion of system andevaluation to increase productivity

Strengthen group governance・Enhancing the internal recruitment system thatencourages challenges
・Expanding exchanges with external companies thatlead to flexible ideas

・Board composition balanced diversity of genderand knowledge and scale
・Further enhance the compliance system

Creating an environment thatenables diverse activities

Initiatives for SDGs

・Realizaiton of working styles that meets customer
needs and staff lifestyles.

・Initiatives for priority issues in line with the Juroku
Bank Group SDGs declaration.
23

Initiatives in growth fields
By Accelerating external collaboration and efforts in growth fields of group subsidiary,
we move to further growth stage together.
Juroku Tokai
Tokyo Securities
Co., Ltd.

Number of account :20,000
Balance of custodyassets200 billion yen

Expansion ofbusiness scope

Acquisition of
new customer
Expansion of existing customer
Customise offer
to wealthy

B
u
s
i
n
e
s
s

Initiatives for new businesssolution for individuals andcorporations

S
c
o
p

Introduction
from securities
to bankeIntrocution
from bank tosecurities

Cooperation with banks/ Utilization of bank functions（ex. Measures for asset
inheritance)

Extensive product lineup（Stock／Bond／Structure Bond／Fund wrap）
Familiarity／Convenience／
Expansion of contact points with customers

Phase 1

Phase 2

Collaboration moves to a new stage「From bank to securities」evloves into ｢Fromsecurites to bank」

All figures are target for the year ending March 2023
（compared to March 2020）

Juroku Lease
Co.,Ltd.

Lease contract
amountAbout 7% increase・Expansion of auto lease for individuals
・By using fund, we expand support for local
companies and entrepreneurs
Juroku ResearchInstitute Co., Ltd.

Number of closed
deals
About 3.5 times

・Expansion of recruitment business（Selection of leading human resources
matching business）

Juroku Card
Co., Ltd.

Expansion ofsolution forcorporate
members

・Enclose excellent members by strengthening external
collaboration
・Expansion of merchant operations to support cashless.

24

Expansion for new business through alliance
Aiming to be a settlement platformer through advanced fusion of finance and IT
Creating a new
foundation of
settlement business〇Densan system Co.,Ltd.(TSE3630）
Foundation：March 1967
Head office：Gifu-shi
Main business：information service,receiving agency service
Net sales：40.2 billion yen(consolidated FY2019）

High potential
in various category
February 2020

Signed “Basic Agreement for Joint business review”

March 2020

Signed ”Capital business Alliance Agreement” with Juroku, Densan system Co.,Ltd. and
DS Technologies Co., Ltd.

April 2020

Accepted part of third-party allotment by DS Technologies Co.,Ltd.

May 2020

Tranzax Co.,Ltd. which provides an electrically recorded loan platform, Juroku and Densan System
Co.,Ltd. signed a business tie-up agreement for a loan service for collateral transfer of collective claims.

25

Initiatives for SDGs
SDGs promotion council

top management chaired by the president

Juroku bank Group
Major initiatives for seven SDGｓpriority issues
・Scholarship program provided by Juroku Community
Promotion Foundation
・Kururu seminor（Lifelong learning for seniors）
・National High School Student Finance
Quiz Championship”Economics Koshien”
・Appointment of female directors and increase the ratioof female leaders・Childcare leave including spouse・Ladies loan ”DREAM”
・Certified as ”good health management corporation 2020”
・Gifu brand reach the metropolitan market Project
Regional bank food selection
・SDGｓ private placement bondJuroku Bank Group
SDGs declaration
Juroku Bank Group continue to hold the spirit “prosper withcustomer” that has been passed down since the Meiji era.
By working to promote the SDGs as a group, we will contributeto create the future in region and to realize a sustainable society
together.

Approach to SDGs

Activation of
the local economy
sustainable growth

Supporting
individual success

For the local revitalization, we will
create common value with customers
by offering various solutions and aim
for sustainable growth.

We prepare the environment thateach employee can enjoy various
activities with motivation.

Environmental issues
and response to global
warming

Group governanceupgrading・Digital financial service（Wallet+､JCB Debit）
・NOBUNAGA21（Venture support）
・Cashless agreement with local government
・JurokuｰGifu city development fund・guardianship deposits and bequest partner
・Entrustment of local government policy advisors andcomprehensive strategy formulation projects
・Reduction of electric consumption, usage of eco cars
・Activity at “Juroku Bank’s Forest MITAKE”
・Green bond investment
・Money laundering countermeasure office・Investment guideline（We will not do anything aimed at inhumane weapons）

Based on the Juroku Bank Group“Environment policy”, we will make thesustainable society through our business.

By strengthening compliance and boostinggroup governance, we will try to preventmoney laundering and finance towards
terrorist.

26

Capital Policy
Stable and continuous dividends in consideration of balance with capital adequacy

Build a sound financial position

Shareholder return policy○By accumulating profits andcontrolling risk assets, we will
maintain a sound equity ratio andaim for a consolidated equity ratioof 10% or above over the longterm.

○The basic policy is to pay stable
and continuous dividends, while
taking into consideration balancewith capital adequacy such as
profit level.

Equity ratio(%)

subordinated procurement

11.0
10.5
10.0

8.5
8.0
7.5

3,100

consolidated equity

10.34
9.65

non-consolidated
consolidated

3,050

9.88
9.22

9.5
9.0

(100 million yen)

100
180

special dividend

90

Ordinary dividend

85
80

9.15
8.54

9.08
8.49

9.27
8.71

3,000
2,950
2,900

75

2,820

2,888

2,905

2,953

3,036

16/3

17/3

18/3

19/3

20/3

2,800

30.2

26.1
19.6

Commemorative dividend（%）

consolidated dividend payout ratio

35.0

24.5
10

30.0

23.2
10

25.0
20.0

70
15.0

65
60

2,850

Dividends

(yen)

70

70

70

70

70

10.0

55

5.0

50

0.0
16/3

17/3

18/3

19/3

20/3

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

27

ESG activities
SocialPartnership/Human resources support

Partnership「NOBUNAGA21」First pitch held

Communication between venture companies andregional companies
Private initiative venture support
network「NOBUNAGA21」held themeeting to communicate with local
companies and unique ventures
which has originality and novelty.
We plan to hold it regularly tocreate new business and to leadinnovation.

SocialPartnership

Selection of leading human resources matching businessSupporting to management issuesof regional companies
In Apr 2019,Juroku Research Institution
Co., Ltd obtain the license and start therecruiting agent business as anopportunity that financial institutions
can operate this.
Our business is selected to leading
human resources matching businesswith the evaluation to the revitalizationof local economies.

SocialHuman resources support

Certified as “Good Health Management Corporation 2020”

First certificated financial institution in Gifu.
We were certified as a good health management corporation by
the Ministry of Economy, Trade and Industry in March 2020.
We formulate “Juroku healthdeclaration” and strive to create ahealthy work environment for
employees.
We will contribute to the developmentof a health and prosperous community
by working to maintain the health of
employees and their families andachieve a work-life-balance.
SocialLogo

Regional Revitalization Collaboration/Partnership

ちいきしゃかいVarious initiatives for regional revitalization

Support for regional revitalization with the public and private sectors

With the best use of the network, we bind the each passion,and create new value in the area.

○Local revitalization cooperation with local
governments「SDGs」「Cashless payment」○Expand sales channels「Gifu brand approaches to the metropolitan
market project 」○Tourism promotion barrier Free Tour
｢4days travel through Gifu」○Town development
Juroku Gifu city development Fund
（Support for revitalizing Gifu city area)

Stroll the streets with anelectric wheelchair

28

ESG activities Sports promotion/contribution to local communities
SocialRegional sports promotion

SocialContribution to local communities

Lesson for youth by our table tennis teamIssuance of SDGｓ private placement bondDirect lesson to selected youth athlete in Gifu

Donation through SDGs private placement bond
(つながるこころ）This is the seventh table tennis lesson, cooperated with
Gifu Table Tennis Association. We invited a limited youth
athlete（14 female junior high school students)
Our team ”the winner of theprime minister’s cup in 2019”
can improve their skill, andlead the local development
through sports promotion.

SocialContribution to local communities

By the issuance of SDGs private placement bond, the issuing
company can donate to others using a part of our commission
fee.
Donation amount by purpose in FY
In FY 2019,with the agreement
2019(million yen）
from issuing company,our
Othersdonation is equivalent to 18
2
million yen.
Local
SchoolWe continue the contribution to
governm13
local society through theentundertaking of SDGs private
placement bond.
3
SocialContibution to local communities

Bequest alliance with local governments

Handling of guardianship deposits

Addition to bequest partner(local governments in
Gifu)「Juroku guardianship support deposit」
じゅうろく
In October 2018, we began handing guardianship deposits.
後⾒We are first regional bank in Tokai area which handle it.

Bequest scheme using testament substitute trust is first in
regional bank. As of Oct 2019,this scheme can be used only
three local government, Gifu Prefecture,Gifu city and Takayama
city.
After that we recruit toparticipate this scheme for all
the local government in Gifu.
As a result, 40 local government
participated this scheme.

Since then, we handled a total 37 cases by March 2020.
We will support thecustomer needs as aregional bank under
the progress of theaging society.

29

ESG activities Environmental conservation・Governance
Environment

Environmental conservation activities

Participation of environmental activities
Participated inlocal volunteer activities
Nagara River clean up project（Gifu）

Forest protection
activity

Activity at “Juroku Bank’s Forest MITAKE”

Strengthen corporate governance
Ensure transparency and fairness of the Board of
Directors
Governance

Human Resource
Advisory Committee

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

Environmental conservation activities

Green Bond Investment
Through green bond investment, we support projects
contributing to the global environment.
【Recent Green Bond Results】
We are actively investing to thequalified green bond such as renewable
Total
FY
numberenergy business contributable to theamountglobal environment.
We invested in 1.9 billion yen(30.9 billion
2018
2 casescases) in FY2019.
yen
We will continue the actions towardrealization of sustainable society with
1.9 billion
2019
3 casesless environmental burden.
yen

GovernanceDiversity of board of directors

Outside director ratio 1/3 or more, initiatives such asappointment of female directors.
Ensuring
diversity of the board of directors and achieving an
release待ちOutside Director
appropriate scale

After the general meeting of shareholders in June
2020,we will appoint the first outside female director, andthree out of nine directors are outside directors. This willfurther strengthen governance and women’s activity,
diversity.

At present（9）Inside ７：Outside２

After the general
meeting ofshareholders（9）Inside 7 : Outside２

30