25th Results Briefing
The Juroku Bank, Ltd.

[The year ended March 2015]

June 1, 2015
（TSE code：8356）

Contents
Overview of Results for FY3/15

13th Medium-term Management Plan: Progress

Overview of results for FY3/15

4

Factors affecting gross operating profit

5

Key data (deposits, loans)

6

Overview of basic strategies

Key data (marketable securities)

7[Customers]

Key data (fees and commissions)8

Improve service quality by focusing on customers

Key data (housing loans)

9[Local communities]

Credit costs and nonperforming loans

10Further promote community-based financial services

Total value at risk

11

[Shareholders/Investors]

Capital policy

12

Shareholder returns

FY3/16 Earnings Forecasts

13th Medium-term Management Plan: current position17

Basic Strategies
19

20

23

26

[Employees]

FY3/16 earnings forecasts

14

Create an environment where employees can leverage

Forecasts of factors affecting gross operating profit

15

their skills

27

Conclusion

28◆Earnings forecasts and other forward-looking statements in this document are based on management’s assumptions and beliefs in light of
information available at the time of publication. Actual results may differ materially from forward-looking statements due to a wide range offactors.
２

第１部 平成２６年３月期 決算概要
Overview of Results for FY3/15

Overview of results for FY3/15 – Consolidated and Non-consolidated –Overview of non-consolidated results▼Non-consolidated
No

1 Gross operating profit
2 Core gross oeprating profit
3
Net interest income
4
Fees and commissions
5
Other operating profit
6(Billion yen） ▼Consolidated
Calc. formula[3+4+5][1-6]

Gains/losses on JGBs
and other debt securities

7 Expenses
8
Personnel expenses
9
Non-personnel expenses
10Taxes
11 Net business profit[1-7]
12 Net core operating profit[2-7]
13 Net oprating profit[11-15]
14 Credit costs[15+16-17-18-19]
15
Provision of general loan-loss reserves
16
Write-downs of nonperforming loans
17
Gain on reversal of loan loss reserves
18
Gain on collection of written-off loans
19
Gain on reversal of contingent loss
20 Gains/losses on equities
21 Other extraordinary gains/losses
22 Investment trust financing expenses
23 Ordinary profit[11-14+20+21-22]
24 Extraordinary gains/losses
25 Net income before taxes
26 Total income taxes
27 Net income[25-26]

FY3/14

FY3/15 Change

FY3/1569.5(69.5)
61.8
6.9
0.8

80.1
(70.0)
61.4
7.6
11.0

10.6
(0.5)
-0.4
0.7
10.2

86.5
(76.4)
61.4
11.6
13.4

-0.0

10.1

10.1

10.1

51.5
29.0
20.3
2.1
17.9
18.0
17.4
3.5
0.4
3.0
0.0
0.0
2.7
1.2
0.0
18.4
0.2
18.6
6.3
12.3

52.3
29.0
20.6
2.6
27.8
17.7
29.3
2.8
-1.5
4.3
0.0
0.0
7.6
2.2
0.0
34.9
-0.1
34.7
13.2
21.4

0.8
0.0
0.3
0.5
9.9
-0.3
11.9
-0.7
-1.9
1.3
0.0
0.0
4.9
1.0
0.0
16.5
-0.3
16.1
6.9
9.1

55.5

31.0
20.9
32.9
2.7
-1.8
4.6
0.0
0.0
7.6
2.1
0.0
38.0
0.1
38.2
14.4
22.7

Gross operating
profitUp ¥10.6 billion YoYGross operating profit rose ¥10.6 billion to ¥80.1 billion,
due mainly to increases in fees and commissions (up ¥0.7
billion) and gains/losses on JGBs and other debt
securities (up ¥10.1 billion).
Net businessprofitUp ¥9.9 billion YoY (up for three years ina low)

Net business profit increased ¥9.9 billion to ¥27.8 billion,
due to an increase in gross operating profit.
Ordinary profit

Up ¥16.5 billion YoY [Record high]Ordinary profit rose ¥16.5 billion to ¥34.9 billion. This was
mainly attributed to an increase in net business profit, adecline in credit costs (down ¥0.7 billion) and an increasein gains/losses on equities (up ¥4.9 billion).

Net income

Up ¥9.1 billion YoY (second consecutive
year of growth)Net income rose ¥9.1 billion to ¥21.4 billion, due to anincrease in ordinary profit.

４

Factors affecting gross operating profit – Non-consolidated –Gross operating profit rose ¥10.6 billion to ¥80.1 billion, due mainly to increases in fees andcommissions and gains/losses on JGBs and other debt securities

B：Balance factors
Y：Yield factors¥69.5bn

Interest
on loans(-¥2.8bn)

B: +2.4
Y: -5.2

Gains/losses on JGBs
Other
and other debt
securities (+¥10.1bn)(+¥0.1bn)
Interest on
Fees andmarketablesecurities commissions
Interest on(+¥0.7bn)
deposits, etc. (+¥2.3bn)(+¥0.0bn)
P7
P8
B: +0.1
B: +1.2
Y: -0.2
Y: +1.1

Net interest income

FY3/14¥80.1bn

Other

FY3/15５

Key data （deposits, loans)▼Deposits by region▼Deposits（Billion yen）

（Billion yen）

4,000.0

5,500.0

3,821.4

3,677.4

3,647.7

3,500.0+144.05,000.0
3,000.0+232.04,500.02,500.0
5,387.4+111.6

Branch network(as of March 31, 2015)

4,000.0

5,157.5

5,155.4

Gifu

2,000.0

Aichi

Hida

Mie

Chuno

3,500.0

1,522.7

1,411.1

1,400.3

1,500.0

Gifu

1,000.0
岐阜県
Gifu

Tono

3,000.0

FY3/13

FY3/14

FY3/15

Aichi
愛知県
Mie
三重県

FY3/13

Seino

岐阜県
Gifu

▼Loans by region（Billion yen）
4,000.0（Billion yen）
Mikawa岐阜県
Gifu

FY3/14▼LoansNagoya

Aichi
愛知県
Mie
三重県

FY3/152,000.0+121.01,746.8

1,715.8
Mie3,500.0

3,000.0

1,638.9

3,865.6
3,751.5
3,657.3

1,625.8

1,640.4

1,567.2

Owari+114.1

Aichi
愛知県
Mie
三重県

[Other area]
1,500.0
Tokyo branch
Osaka branch
Virtual branches (3 branches)
Hong Kong Representative Office
Shanghai Representative Office
Singapore Representative Office
Bangkok Representative Office+1.5

2,500.0
1,000.0
岐阜県
Gifu
2,000.0

Aichi
愛知県
Mie
三重県

FY3/13

FY3/13

FY3/14

FY3/15

岐阜県
Gifu

Aichi
愛知県
Mie
三重県

FY3/14

岐阜県
Gifu

Aichi
愛知県
Mie
三重県

FY3/15

６

Key data (marketable securities)
Striving to realize investment yield by agile operation of marketable securities sincemerger▼Balance of marketable securities(Billion yen)
2,000(Billion yen)
120

1,757.3

215.8

13.1

100

291.2

1,383.9
102.0

73.1

19.5

80
As of merger

1,000

60

1.5
24.3

33.1

1,417.9

1,220.3

1,201.5

40

500

80.3

123.5

151.0

FY9/12 1H
FY3/13

FY9/14
FY3/14

FY9/15
FY3/15

Epuities
Equities

JGBs

Gains/losses on equities
Gains
LossesDepreciation0

6.0
FY3/13
FY9/121H
Valuation

gains/losses
株式評価損益on equities(Million yen)
（Million yen）

FY3/14

Gains
Losses26.8

Other securities▼Related gains/losses
Gains/losses on JGBs and other debt securities

20

FY3/15

-42
1,113
1,166

10,10911,073963

Change10,151
9,960
-203

2,787
3,242
318
136

7,681
7,864
153
30

4,894
4,622
-165
-106

77.1

（equity）
+29.8

0.2

0

109.9

＋36.8

1,662.6

As of merger

1,500▼Valuation gains/losses

47.3

FY3/14
FY9/14
Valuation

gains/losses
債券評価損益on bonds

Rises instock market

FY3/15
FY9/15
Valuation

gains/losses
その他の評価損益
on other▼Duration of yen-denominated securities
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00

4.26
3.59

FY3/13
FY13/3

FY3/14
FY14/3

3.84

FY3/15
FY15/3７

Key data (fees and commissions)
Profit expanded and individual client assets achieved ¥4,235.7 billion (up ¥137.3 billion
YoY) driven by integrated financial transactions▼Sales amount of mutual funds and insurance▼Individual client assets(Billion yen)
4,500

and commissions+137.34,235.7

3,000

+97.7

2,500

3,569.5

3,471.8

3,419.9

5

120

3.9

100

3.0

43.8

80
60

2

87.1
58.9

44.0

1

0
1,000

FY3/14

Balance of
個人預金残高individual deposits

FY3/13
Sales amount
投資信託販売額

FY3/15

Balance of
その他預り資産残高
client assets

FY3/14of mutual fund0
FY3/15
Sales amount
個人年金保険等販売額
of insurance, etc.

Commissions
手数料収益▼Fees and commissions(Million yen)

7,000

▼Other client assets

Mutual funds
Individual annuity
insurance
Public bonds
TotalTarget figure of Medium-termManagement Plan

6,000

(Billion yen)
FY3/15 YoY (FY3/13)

FY3/13

FY3/14

YoY

(A)

(B)

(C)

(C)-(A)(C)-(B)

155.8

153.2

186.8

31.0

33.6

326.1

370.0

424.1

98.0

54.1

130.4

103.2

55.2

-75.2

-48.1

612.4

626.5

666.2

53.8

39.7

4
3

25.3

20

FY3/13

54.0

40

1,500

6

Commissions revenue

612.4

Sales amount

666.2

626.5

(Billion yen)

5.1

140

+39.7

4,000

2,000

160

4,098.4

4,032.3

3,500

+1.2

(Billion yen)

5,000
4,000

5,275

3,000
2,000

3,145

4,400

4,141

4,800

1,000
0

447

526

900

FY3/12 FY3/14
FY3/13 FY3/15
FY3/14
FY3/13
Fees for companies
法人フィー+対顧デリバ+ derivative to customers

580

860

5,300

1,140

FY3/15
FY3/16
FY3/17
Plan Fees Goal
Goal
for client assets
預り資産フィー

８

Key data （housing loans）
Housing loans have been steady, particularly in Aichi Prefecture, despite a drop in
housing starts after the increase in consumption tax▼Number of housing starts, value of new▼Growth in value of housing loans (half yearly
housing loans issued

basis) vs. two competitors
Consumption (Billion yen)tax hike(Houses)(Billion yen)

70
60
50
40
30
20
10

FY3/14 1H

FY3/14

FY3/15 1H

FY3/150

FY3/14
FY9/13
FY3/131H

FY3/14
FY3/14
FY3/14
Juroku
当行
BankBank AA行

FY3/15
FY3/15
FY3/15

Bank B
B行▼People from other areas moving into

▼Key economic indicators for Aichi Prefecture
National share

FY3/151H
FY9/14
FY9/14

Aichi Prefecture

National rank

Population

7.48mn5.8%

4th/47（2014）

Number of households

3.1mn

5.5%

4th/47（2014）

Pref. GDP (nominal)\31.9tn

6.4%

2nd/47（2011）

Number of businesses

0.32mn

5.8%

Value of product shipments\41.9tn

Pref. per capita income
Effective job openings\3.105mn
1.31Strong market potential
comparedwith other prefectures

People from other prefectures

Highest number of people
coming from Gifu Prefecture

1

Gifu

14,038

3rd/47（2012）

2

Tokyo

11,89414.4%

1st/47（2013）

3

Mie

9,083

-

3rd/47（2011）4

Shizuoka

8,750

5

Osaka

7,554

･･･

・・・

・・・

2nd/47（2013）

Entry point for lifetime banking Driving growth in number ofrelationships with employees
permanent residents
in Aichi Prefecturein Tokai region
Role of housing loans９Credit costs and nonperforming loans▼Credit costs(Billion yen)
FY3/13Credi costs（1+2-3-4-5）

FY3/14

8.1
-2.4
10.6
0.0
7.7
2.0
0.7
0.0
-

(1) Provision for general loan-loss reserves（gain on reversal）(2) Write-downs of nonperforming loans
Loans written off
Provisions for specific loan-loss reserves
Losses on bulk sales
Other(3) Gain on reversal of loan loss reserves(4) Gain on collection of written-off loans(5) Gain on reversal of contingent loss reserves

FY3/15

3.5
0.4
3.0
2.0
0.4
0.5
0.0
-

2.8
-1.5
4.3
3.5
0.4
0.3
0.0
0.0

▼Write-downs of nonperforming loans by Credit costs remain low
 Nonperforming loan ratio was 2.86% as ofend-FY3/15
 Nonperforming loan ratio was 2.66% afterpartial direct write-offs▼Nonperforming loans（Financial Revitalization Law basis）(Billion yen)

(%)

3.93

200

4.00

sector

3.26(Million yen)

FY3/13

3,500

3,201

150

146.5

2.86

124.3

17.6

FY3/14
FY3/15

3,000
2,500

17.1
100

2,447

3.00

112.2
-12.1

15.4

2.00

86.7

1.00

0.00

2,141

2,047
2,000

115.8

1,755

95.1

1,509

50

1,500
999

1,000

726

678

517
500
109

256
157

26

118

0
Manufacturing Construction

Retail/wholesale

Real estate

Services/
other

0

13.1

12.1

10.1

FY3/13

FY3/14

FY3/15Loans requiring monitoring
Doubtful loans

単体

Loans to bankrupt and quasi-bankrupt borrowers
Nonperforming loan ratio

１０

Total value at risk
●Total value at risk exposure is currently within the parameters of Juroku Bank’s
management capacity (allocatable capital)
Total value at risk
(Billionyen)(Billionyen)<Buffer>
Credit risk stress¥4.6bnMarket risk stress¥19.7bn
Cross-held shares stress ¥0.6bn
Other risks¥2.8bnTotal¥27.7bn250

Allocatable
Capital(Core capital-General loan
loss reserves)

General loan loss reserves: ¥7.7bn￥6.6bn→ Reserve for stress¥66bn→¥15.3bn

Risk exposure to cross-held shares iszero, as valuation gains exceed VaR* Assuming valuation gains are ≥ 0
Risk exposure = VaR – valuation
gain
valuation gains
Valuation(minimum value is 0)
gains onAssuming valuation gains are < 0cross-held
Risk exposure = VaR + valuation
sharesgains
losses¥75.4bn
Unallocated capital: ¥6.6bn

Buffer: ¥27.7bn

Cross-heldshares VaR¥33.8bn

200¥20.6bn¥12.5bn¥20.0bn

150

Core
capitalCore capital¥235.7bn

100

Allocatable
capital
Allocatable
capitalcapital
(Core
(Core
capital-General– generalloan
loan
loss
loss reserves)
reserves)

Unused risk capital:¥124.0bn
Operational risk

¥145.9bn

The Standardized Approach¥126.2bn¥228.0bn

Cross-held share risk
Holding period: 6 months
Confidence level: 99%*

Market risk
Holding period
Bonds, shares, etc: 6 months
Deposits and loan: 6 months
10 business days of trading
Confidence level: 99%＊

50¥39.6bn¥35.0bn

Core capital¥0.0bn¥42.5bn

Credit risk
Holding period: 1 year
Confidence level: 99%¥17.4bn(Reference)(excluding application of Allocatable capitaltransitional measures)¥228.0bn¥235.7bn(end-Mar 2015)¥9.8bn(end-Mar 2015)

Stress scenario¥221.4bn(Sep 2015)

Risk capital¥193.7bn(Sep 2015)

Risk exposure¥69.7bn(end-Mar 2015)

１１

Capital policy – Improving capital quality –▼Retirement by purchase of preferred stock▼Procurement of subordinated loans and bonds¥58.0bn

March 10, 2015
Purchased first preferred stock of ¥20 billion*
Sep 7 2012: secured ¥8.0bn subordinated loan
Sep 18 2012: assumed ¥3.0bn subordinated loan

Subordinatedloan:*Allocated issuance to Bank of Tokyo Mitsubishi UFJ
at the time of merger with Gifu Bank in September 2012

¥43.0bn¥28.0bn¥39.0bn

Subordinatedloan:¥3.0bnSubordinatedloan:

Making agile decisions on
management base easier

All retired

Mar 22 and Sep 18 2012: two ¥15.0bn
tranches of subordinated bonds before
maturity

Subordinatedbonds:¥30.0bn

Subordinatedbonds:

Mar 31 2012

<Disclosed information> （Non-consolidated）(Billion yen)

(Full implementation)

Equity ratio(Consolidated)(Full implementation)

10.47%
8.66%
11.15%
8.81%

10.63%
8.86%

Oct 1 2014: repaid ¥10.0bn
subordinated loan before due date

Oct 1 2012: repaid ¥10.0bn subordinated loan
before due dateDec 21 2012: issued ¥10.0bn in subordinated bonds¥21.0bn

Subordinatedloan:¥21.0bn

Subordinatedloan:¥11.0bn¥28.0bnSep 30 2012

Subordinatedbonds:

Subordinatedbonds:

Subordinatedbonds:¥10.0bn¥10.0bn¥10.0bn

Mar 31 2013

Mar 31 2014

Current balance<When adjusting preferred stock andsubordinated loans/bonds>(Billion yen)

end-FY3/14

end-FY3/15

end-FY3/14

end-FY3/15

Transitional measures

Transitional measures

Transitional measures

Transitional measures

9.93%
8.62%

¥21.0bn¥31.0bn

Subordinatedloan:¥29.0bn¥15.0bn▼Equity ratio
Equity ratio(Non-consolidated)

Apr 1 2013: repaid ¥8.0bn
subordinated loan before due date

Subordinatedloan:

Apr 1 2011

FY3/15¥8.0bn¥28.0bn・Completed reorganization of groupcompanies
・Completed integration of HR system
April 1, 2015 Completed management
integration

FY3/14

Subordinated
loan:

Full

Full

Full

Full

implementation

implementation

implementation

implementation

Total equity capital

281.4

232.8

271.0

235.7

Total equity capital

230.4

212.8

250.0

235.7

Preferred stock

20.0

20.0

-

-

Preferred stock

-

-

-

-

-

-

-

-

2,687.7

2,686.4

2,727.9

2,732.2

8.57%

7.92%

9.16%

8.62%

31.0

-

21.0

-

Subordinated loans/bonds

Total risk assets

2,687.7

2,686.4

2,727.9

2,732.2

Total risk assets

Equity ratio

10.47%

8.66%

9.93%

8.62%

Subordinated loans/bonds

Quality of total equity improved
Transitional measures：-0.54％
Full implementation：-0.04％

Equity ratio

Transitional measures：+0.59％
Full implementation：+0.70％

１２

第１部 平成２６年３月期 決算概要
FY3/16 Earnings Forecasts

– Consolidated / Non-consolidated –FY3/16 earnings forecasts▼▼Non-consolidated(Billion yen） Consolidated

No
Calc. formula

1
2
3
4
5

Gross operating profit[3+4+5](Core gross operating profit)
Net interest income[1-6]

Fees and commissions
Other operating profit
Gains/losses on JGBs

6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

and other debt securities
Ex penses
Personnel ex penses
Non-personnel ex penses
Tax esNet 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 nonperforming 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 ex traordinary gains/losses
Investment trust financing ex penses
Ordinary profit
Ex traordinary gains/losses[11-14+20+2-22]

Net income before tax es
Total income tax es
Net income[25-26]

FY3/14

FY3/15

FY3/16

ChangeFY3/16(Results)(Results)(Forecast)（YoY）(Forecast)

69.5(69.5)
61.8
6.9
0.8

80.1
(70.0)
61.4
7.6
11.0

69.5
(66.9)
58.1
7.7
3.7

-10.6
-3.1
-3.3
0.1
-7.3

-0.0

10.1

2.6

-7.5

51.5
29.0
20.3
2.1
17.9
(18.0)
17.4
3.5
0.4
3.0
0.0
2.7
1.2
0.0
18.4
0.2
18.6
6.3
12.3

52.3
29.0
20.6
2.6
27.8
(17.7)
29.3
2.8
-1.5
4.3
0.0
0.0
7.6
2.2
0.0
34.9
-0.1
34.7
13.2
21.4

51.8
29.3
19.8
2.7
17.7
(15.1)
18.0
3.2
-0.3
3.5
0.0
0.7
1.3
0.0
16.5
-0.1
16.4
5.4
11.0

-0.5
0.3
-0.8
0.1
-10.1
-2.6
-11.3
0.4
1.2
-0.8
0.0
-0.0
-6.9
-0.9
0.0
-18.4
0.0
-18.3
-7.8
-10.4

Forecasts for FY3/16▼ Non-consolidated
Ordinary profit¥16.5 billion

Net income¥11.0 billion▼ Consolidated

3.9

Ordinary profit¥19.0 billion

Net income attributable
to stakeholders of aparent company¥11.7 billion

19.0

11.7

１４

Forecasts of factors affecting gross operating profit– Non-consolidated profit/loss –Gross operating profit for FY3/16 is projected to decrease ¥10.6 billion YoY
to ¥69.5 billion
B：Balance factors
Y：Yield factors¥80.1bn

Interest
on loans(-¥1.7bn)

B: +1.3
Y: -3.0

Interest on
marketable
Interest on
deposits, etc. securities(-¥1.4bn)(+¥0.2bn)
B: -0.0
Y: +0.3

Net interest income

FY3/15

Gains/losses
on
JGBs andFees andcommissions other debt
securities(+¥0.1bn)(-¥7.4bn)

B: -0.4
Y: +1.0(Billion yen)

Other(-¥0.3bn)¥69.5bn

Other

FY3/16１５

13th Medium-term Management Plan:
第１部 平成２６年３月期 決算概要
Progress13th Medium-term Management Plan: current position▼Numerical targets
Start of plan

Targets

Growthpotential(customerbase)

Earning
capability（end-FY3/14）

Depositbalance

FY3/15Results

Final FY

¥5,155.4bn¥5,387.4bn¥5,600bn

Number of retailborrowers

97,780102,024

100,000 or more

Net income¥12.3bn¥21.4bn¥10bn

Core equity ratio

8.66％

8.62％

8.8％ or more

0.09％

0.07％

Less than 0.2％

(Full-implementation basis)

Financialsoundness

Ratio of credit
cost to total loans■ Number of retail borrowers =SME borrowers (including proprietors) + Number of housing loans and apartment
loans (based on the Bank’s standards)
Core capital (before transitional arrangement)■ Core capital ratio ＝(full implementation basis)
Risk assets (before transitional arrangement)■ Ratio of credit costs to total loans ＝Credit costs
Average loan balance

Good start towards
achievement of the Mediumterm Management Plan

１７

第１部 平成２６年３月期 決算概要
Basic Strategies

Overview of basic strategies▼Improving “Engagement”“Engagement” means to actively strengthen mutual relationships and to build
strong trust between our stakeholders; customers, shareholders, local
communities and employees, and Juroku Bank.

⇒page 20 Customers→Strong relationshipof trust

Local communities

Employees→Environment forbest performance⇒page 27

Engagement

Shareholders/Investors→Contribution todevelopment of local
economy⇒page 23 -→Enhancing corporate
value⇒page 26

１９

[Customers]
Improve service quality by focusing on customers (1) <Strategies for Gifu and Aichi prefectures> We will implement improvements to change our passive approach of dealing with complaints andrequests to an active approach of product and service provision, based on an uncompromising
focus on the customer[FY3/15 H1]Changing attitudes for uncompromising
focus on the customer[FY3/15 H2]
Shift from changing attitudes tochanging behavior

UpgradeEstablished a new Customer
Service Division

 Action plan to boost customer
service

Concrete
initiatives

Ensure employees understand“little things matter”
 Opened non-branch ATMs with new design
 Extended operating hours of ATMs
 Introduced Wi-Fi (21 branches)
Opened new one-stop banking counters near
Tokyo Station
 Conducted branch monitor surveys, etc.

<New designs for non-branch ATMs>＋<Longer ATM operating hours>

One-stop banking counters
Mainly in the Tokyo
metropolitan area, we started
reception services such aschanging address, at premises
other than our branches.
(Operation：ATM Japan, Ltd.)<Wi-Fi introduced>
Sticker sample

3D ad sample<Juroku Bank’s ATM>

Max. operating hrs.
7:00 - 23:00*ATMs at partner convenience stores operate 24/7.

Operating hours
Weekdays：12:00 - 20:00
Weekends & holidays：
10:00 - 18:00
２０

[Customers]
Improve service quality by focusing on customers (2) <Aichi Prefecture strategy> Solid earnings at new branches and existing branches transferred from Gifu Bank(Million yen) Profit/loss forecasts and results

200(Million yen) Profit/loss forecasts and results

at new branch A

200

150

150

Turned cash-flow surplus
in a single year, with oneyear advance

100

50

0

0

△-50
50

△-50
50

△-100
100

△-100
100

(year)

Plan Results Plan Results Plan Results Plan Results Plan Results
1st

2nd

3rd

(Billion yen)

Turned cash-flow surplus
in a single year, withthree-year advance

End-Mar.
2015
27年3月末

100

50

△-200
150

Total loan balance
at 9 existing branches

at new branch B

4th

5th

△-200
150
(year)

年増
Change9 existing branches total
存続店(9店舗)
合計

15.0
150

Target amountof yearly increase
¥10bn

年率(%)
Change12.10%

7.32% per year
at branches
in AichiPlan Results Plan Results Plan Results Plan Results Plan Results
1st

2nd

3rd

4th

5th

▼Branch strategy: create a branch network that improves customer convenience Build and relocate branches
Nagoya Ekimae Branch （in Nagoya city）
 Open new branches●店舗外ＡＴＭの集中出店
New branches in Mikawa and Chita areas
 Roll out an intensive program of non-branch
ATM openings

Nagoya city
<DCM Khama Okazaki
branch><APITA Toyota Motomachi branch>

Prospects for return on investment

5

Nagoya Ekimae Branch
is to be relocated to
New DaiNagoya Bldg. *(*now under construction)

Increased non-branch ATMs
in response to requests
from housing loan users
Opened new branches
in Mikawa and Chita areas<V・drug Owari Asahi branch>

Already opened nonbranch ATMs in FY3/15

２１

[Customers]
Improve service quality by focusing on customers (3) <Strategies for Gifu and Aichi prefectures>▼Promoting comprehensive banking relationships starting with housing loans Our goal is to become the most trusted regional bank, using more housing loans as
the entry point to lifelong banking relationships with customers
 We will rapidly provide products and services tailored to the life stages of eachcustomer at the optimum time and through the best channel, aiming to expand thesize of retail investor assets under management by promoting comprehensive
banking relationships
Young adults

Asset portfolio builders

People away from home on weekdays(working generation)

Internet banking
generation

Non-faceto- faceneeds

Senior citizens

Face-to-face banking generation

Expand Internet banking capabilities, renew website, promote Internet insurance
Unified approach for retail customers
and business customers

Enhance ATM functions, extend operating hours
Extend operating hours
Occupations
including holiday operation
Loan service center, LPC

Face-toface
Functional

Pre-senior citizens

Account
opening

J-POINT

Salarytransfer

Creditcard

Business with small
business owners
PLAZA

Main bankfor family
budgetPensionRetail deposits

Management
needs

ＮＩＳＡ, investment fund, life insurance

Consulting for asset succession
Investment of retirement benefits

Procurement
needsFree loan

Housing loans

Education loan

Apartment loan

２２[Local communities]
Further promote community-based financial services (1) <Strategies for Gifu and Aichi prefectures>▼The first year of a new program to revitalize the regions: reenergizing regional
economies Leverage our role as a regional financial institution
 Support local economies and companies to revitalize the regional economy
A comprehensive strategy aimed atrevitalizing communities, people and work

Regional
economyCreate highly appealing regional communities

Industry
Industry
Industry
Industry

Areas where Juroku Bank can make a difference
Help boost the competitiveness of regional industry■ Comprehensive support for business creation■ Support for companies that play a key role in theregion ⇒Loan provision based on assessments ofcommercial viability■ Provide support for smooth business handovers,
business revitalization and business improvement■ Support to transform agriculture, forestry andfisheries into a growth sector

Industry

Juroku Bank Group

Government Academia

Workers

Financial
institutions

２３

[Local communities]
Further promote community-based financial services (2) <Strategies for Gifu and Aichi prefectures>▼Example of concrete initiatives
Japan’s first co-financing deal including a regional bank<Co-financing offered through a mother fund to revitalize tourism><Consultation service for people planning to start a company>

Juroku Bank and its partners are providing co-financing through a nationwide tourism
revitalization fund to “Project 4 Stars.” which aims to continue revitalizing the Takayama area, one
of Japan’s tourist destinations.
Funasaka Syuzo Co., Ltd.

（Scheme image）
Financing in “Project 4
Stars”

1st in Japan!

Juroku Bank(Strengthen productlineup, etc.)(Strengthen financial andmanagement bases)

Debt (2)Debt (3)Juroku Bank
Revitalizing tourism
Mother fundCo-financing(Small-sized full-year
brewing facility)

Debt (1)Asset

Opened on Feb. 25, 2015
First in Japan!
Private-led supporting network organization,centering regional banks,
securities companies and audit firms

Business
liabilities
Debt

Supporting network for venture companies in Gifu region

Award ceremonyon Feb. 27, 2015

This case

Net asset

Juroku Bank
Startup support
desk(Ref.) Our press release issued on Apr. 7, 2015

First investment project covering the Tokai area’s three prefectures（出典）H27.3.27付弊行プレス原稿<Supplier search service>(Reverse trade fair meetings)<Operating
manager>
Juroku Lease

Customer
who wants
sellout
Consultation

Capital 50 million yen

Gero city・JA・
Association forgrowers oftuberous rootsof konjac

Supplying company
Supplying company<M&A operations>

Mannan Kobo Hida
Co., Ltd.
Farmland expansion andproduction increase

Entry

Business
execution

Supplying company (Seller)<2nd and 3rd business
operators>
Partner companies

Sixth Industrialization entity

Cooperation=Investment

Juroku Sixth
Industrialization
Fund<1st business operators>
Gero specialty manufacturer
Association for growers oftuberous root of konjac

Management
supportPrivate sector

Agriculture, forestry and fisheries Fund corporation for
Innovation, Value-chain and Expansion Japan (A-FIVE)

Government<Investors>
Juroku Bank
Juroku Lease

Buyingcompany(Buyer)Juroku Bank

Juroku Bank will use this fund to invest in Mannan Kobo Hida Co., Ltd., which aims to boost
the konjac production area and output, farming incomes and employment in the Hida area.

Request for setting up
a business meeting<Agriculture, forestry and fisheries growth sector fund>Research and development

Gifu
University(Ref.) Our press release issued on May 25, 2015

JurokuBank▼Changes in commission income

Customer
who wants
takeover(Million yen)

80

Consultation

Businessalliance
Tax
attorney andCertified public
accountant

Nationwide
regional bankConsulting
firm
Securities<Number held since
FY3/12>
Trade fair meetings：78
Total no. of businessconsultations：1,075*Contract completion
rate 35.4% one year
after initial businessconsultation

60

M&A
M&A
agencyagencyMegabank
and Government –controlled bank

40

Chamber ofcommerce
and industry

20

２4[Local communities]
Further promote community-based financial services (3) <Aichi Prefecture strategy>
Kawasaki Heavy Industries, Ltd. Gifu works<Kakamigahara city, Gifu Prefecture>▼Boost the growth of local
economies and businesses
Automobile+α
Gifu

Mitsubishi Heavy Industries, Ltd.
Nagoya Guidance & Propulsion System Works<Komaki city, Aichi Prefecture>
Mitsubishi Aircraft Corp.
Head office<Nishikasugai-gun, Aichi Prefecture>
Toyota Motor Corp.
Head office and factories<Toyota city, Aichi Prefecture>(Source) Toyota Motor Corp. Official Site

Mitsubishi Heavy Industries, Ltd.
Factory districts of Iwatsuka, Oye and Tobishima
Kawasaki Heavy Industries, Ltd.
Nagoya works 1 and 2 area
<Nagoya city, Aichi Prefecture>

Center of Japanese manufacturing
Honda Motor Co., Ltd.
Suzuka factory<Suzuka city, Mie Prefecture><Production value of aircrafts and parts in Chubu area>（Billion yen）

Over 50% of domestic aircraft and parts are produced inthese three prefectures in the Tokai region

51.9%

700
7,000

Mie

600
6,000

Centrair and Central Japan Airport city district

500
5,000

5,756
575.6

400
4,000
MRJ; Japan’s first domestic regional jet

4,749
474.9

300
3,000
200
2,000

4,021
402.1

387.9
3,879

100
1,000
00
2010
*MRJ is a product of Mitsubishi Aircraft Corp. andregistered mark of Mitsubishi Heavy Industries, Ltd.

2011
Aircraft and parts
航空機・部品

2012

55%
50%
45%
40%
35%
30%
25%
20%
15%
10%

2013

<Source> METI
% of nationwide production
全国に占める割合“Production trend
statistics”

Supplier search service(Reverse trade fair meetings

Aichi

）

２５

[Shareholders/Investors]
Shareholder returns
 Memorial dividend for completion of merger is planned （Annual dividend is 8 yen
from 7 yen/share）▼Dividend breakdown (FY3/15）
Planned amountPrevious amount（FY3/14）
March 31, 2014

Dividends per share (Annual)

Record date

March 31, 2015

Dividend per share

4.5 yen （including 1 yen ofcommemorative dividend）

3.5 yenTotal dividends

1,681 million yen

1,307 million yen

Effective dateJune 22, 2015

June 30, 2014

Dividend resource

Retained earnings

Retained earnings

FY3/13

FY3/14(including 1 yen ofcommemorative
dividend)

Enhanced special benefit plan since FY3/15

FY3/1523,803

12,353

21,488Dividends paid in total

2=3+4

2,736

2,836

3,099

Common share

3

2,616

2,616

2,989

(7.00 yen)

(7.00 yen)

(8.00 yen)

120

220

110

(6.00 yen)

(11.00 yen)

(5.50 yen)

(Dividend per share)

7.0 yen(Million yen）

1

4

7.0 yen

FY3/158.0 yenWinter 2015

Net income（Non-consolidated）

First preferred stock

FY3/14

Summer 2015

<Shareholder
special benefit plan>▼Status of shareholder returns(Dividend per share)

FY3/13

Treasury stock acquired value

5=6+7

-

-

20,090Common share

6

-

-

-

First preferred stock

7

-

-

20,090

Dividend payout ratio

3/(1-4)

11.0%

21.6%

14.0%

Shareholder return ratio(3+6)/(1-4)

11.0%

21.6%

(*) 14.0%

Juroku Bank wasfounded in October1877.

To mark 140th
anniversaryof establishment
in October 2017

Old head office (Gifu city)（*) The ratio for FY3/15 is 107.9%, which includes retirement by purchase of first preferred stock and dividends.

Head office(Gifu city)

Juroku Bank Nagoya Building (Nagoya city)

２６

[Employees]
Create an environment where employees can leverage their skills▼ President’s meeting
Held monthly exchange of opinion meetings
between president and employees.
FY3/15: 11 times in total, 171 employees attended▼ Joint corporate briefing by 3 banks
Held joint corporate briefing between 3 banks; Juroku Bank, Hyakugo
Bank and Nagoya Bank, including young employees. 2,600 students
gathered at the three venues of Kyoto, Tokyo and Nagoya

Image of President’s meeting in session
Image of Nagoya venue for FY3/16▼ “Shine Nadeshiko☆Project”

Freshmen joined April 2015 (at training center)▼ Well-developed training system

Training center (Gifu city)

Freshman training

Saturday seminar (J-College)

２７

Conclusion▼ Enhancing engagement between customers and Juroku Bank
13th Medium-term Management Plan

Long-term vision● Reform our awareness and actions to ensure
an uncompromising focus on the customer● Return to our roots as a regional financial institution● Implement a growth strategy focused on
our Aichi Prefecture Strategy

Truly reliable local
financial institution
with sustainable growthpotential

FY3/15 1H

FY3/15 2H

FY3/16 1H

FY3/16 2H

FY3/17 1H

FY3/17 2H

Thorough focus on customers

Actionreform＝Awareness
reformEnhancingon-sitestrength
Enhancingorganizational
strength

Customers→Strong relationship of
trust

Employees→Environment forbest performance

Engagement*

Localcommunities→Contribution todevelopment of local
economyShareholders/Investors→Enhancing corporate value

Management Issues
・Narrowing loan-deposit spread・Sluggish growth in loans for local businesses/enterprises
・Optimization of costs* “Engagement” means to actively strengthen mutual
relationships and to build strong trust between our
stakeholders; customers, shareholders, local
communities and employees, and Juroku Bank.

All we like to value are our customers’ smiles.
２８

We would like to thank you allfor your attention.

２９