T op Message
We aspire to become a“comprehensive financialgroup that builds a futurewith local communities andachieves sustainable growthwith local economies”
in partnerships with ourcustomers and the region.
Yukio Murase
Chairman and President,
The Juroku Bank

Launch of the 15th MediumTerm Management Plan
The year ended March 31, 2021 has a particular significance as
it began with the launch of the “15th Medium-Term
Management Plan ~ Engagement to the future ~.”In this plan, we uphold a long-term vision toward our150th anniversary in 2027, aspiring to be a “comprehensive
financial group that builds a future with local communities andachieves sustainable growth with local economies.”
To realize this vision, we are seeking to shift our businessmodel by implementing three reforms: “business reform,”“operation process/channel reform” and “human resources/
organization reform” while working to create shared value withan eye to the future needs of our customers and the region weserve.

2

Initiatives for COVID-19
The start of the year ended March 31, 2021 coincided with the outbreak of COVID-19, which triggered an unprecedented crisis for whichpast experience offered little guidance. Prioritizing the health and safety of our customers, officers and employees, the Group has been
making its best effort to provide the required financial services as much as possible, paying more attention than ever to communities andcustomers.
We swiftly provided support to customers affected by and suffered damage from the COVID-19 pandemic, centering on cash flow
support programs.

Cash flow support provided by the Bank
Number of COVID-19-related loans executed

11,491

Amount of COVID-19-related loans executed¥300.6 billion[Of which, amount of interest free loans executed]¥181.7 billion

Number of applications for revisions of the terms and conditions of mortgage loans in view of the
impact of the COVID-19 pandemic
Amount of mortgage loans whose terms and conditions were revised

316¥4.4 billion(as of March 31, 2021)

In the COVID-19 pandemic, besides cash flow
support programs, we strove to enhance
engagement with customers while
implementing the market-in approach(customer-first marketing strategy).
The Corporate Consulting Groupestablished in April 2021 is spearheading ourefforts to provide corporate customers support

Holding of business matchmaking conferences
We hold business matchmaking conferences in which the general managers of theBank’s branches, on behalf of their customers’ sales managers, make presentations on
their customers’ products and services to general managers of other branches of the
Bank in the vicinity. Preparing presentation materials is a great opportunity to gain indepth understanding of customers. At theconferences, likely partners are proposed andefforts are made to speed cooperation, leading todeals. The Bank’s conferences are increasingly
viewed as valuable opportunities for new businessmatching and fruitful engagement.

tailored to their individual situations in
combination with the conventional corebusiness support as well as our swift
responding capability. Personnel of the head
office visit corporate customers in cooperation
with sales branches to ensure close
communication with their management.

Serving as an intermediary for utilization of human resources
We are aware that certain customers who have a steady stream of orders are in need ofadditional human resources. Meanwhile, there are customers whose human resources
exceed their needs because of decreased production amid the COVID-19 pandemic. We
are endeavoring to serve as an intermediary between these customers. We made referrals
in cooperation with our branches, and by pairing customers with matching needs, wewere able to arrange for the employment of some 20 people. Both customers were alsoable to use the government’s subsidy system. This is an example of fruitful engagementwith customers.

The Citrus Ribbon Project aims to eliminate discrimination and prejudice associated with COVID-19
throughout the region, whether at home or in workplaces, and contribute to the resumption of a
happy carefree life. In February 2021, the Bank endorsed the Citrus Ribbon Project and is working torealize a compassionate community.
Every member of the Bank is resolved to engage with people in the communities and take action,
always mindful of what they can usefully do now.
3

Review of the First Year of the 15th Medium-Term
Management Plan
Progress of the 15th Medium-Term Management Plan
Numerical targets

At the launch of the plan
(FY2019 results)

FY2022 targets

FY2020 results

Profitability

Net income (consolidated)¥12.0 billion¥12.8 billion¥14.7 billion

Efficiency

Adjusted OHR(non-consolidated)

Around 67%

67.18%

65.38%

Long-term targets

At the launch of the plan
(FY2019 results)

Targets

FY2020 results

Profitability

ROE (consolidated)

5% or more

3.65%

3.98%

Soundness

Core capital ratio(consolidated)

10% or more

9.27%

9.93%

In the year ended March 31, 2021, the first year of the 15th Medium-Term Management Plan, we refrained from face-to-face sales so as toprevent the spread of COVID-19 and our business was affected, particularly in the first half. However, our financial performance recoveredin the second half once we had established a sales system in response to the COVID-19 pandemic. On a non-consolidated basis, net core
operating profit increased by ¥1.0 billion year on year to ¥21.5 billion, ordinary profit increased by ¥4.0 billion year on year to ¥22.5
billion, and net income increased by ¥1.4 billion to ¥14.1 billion.
On a consolidated basis, ordinary profit increased by ¥5.2 billion year on year to ¥24.6 billion and net income attributable to owners of
the parent increased by ¥1.9 billion to ¥14.7 billion. Regarding both “net income (consolidated)” and “adjusted OHR (non-consolidated),”which are the key performance indicators for our numerical targets of the 15th Medium-Term Management Plan, our results in the first yearof the plan exceeded the targets for FY2022, the final year of the plan.

Net income attributable to owners of the parent

Adjusted OHR(Billions of Yen)

Adjusted OHR (non-consolidated)

14.7

(%)

Adjusted OHR (consolidated)

75.19
75.04

12.8
68.69

10.6

67.18

66.51
65.38

FY20184FY2019FY2020FY2018FY2019FY2020Capital Policy
In regard to our capital, as profits have been
accumulated, a consolidated core capital ratio of
10% or above, which is a long-term target underthe 15th Medium-Term Management Plan, is
within reach.
Regarding dividends for the year ended March
31, 2021, we paid a year-end dividend of ¥55 pershare. Whereas our initial plan was to pay a yearend dividend of ¥35, we revised it in November
2020 to ¥45, an increase of ¥10 per share. However,since our business results for the year ended March
31, 2021 exceeded the forecast announced in
November and in view of the imminent transition
to a holding company structure in October 2021,
we added another ¥10 per share as acommemorative dividend.
As a result, annual dividends amounted to ¥90,
including the interim dividend of ¥35.

Core capital ratio
Consolidated equity

Changes in dividends
Non-consolidated

(%)

9.93

10.0
9.0
8.0

Consolidated

9.08

9.27

8.49

8.71

(Billions of Yen)

9.35
315.3

7.0

Special dividend
Commemorative dividend
Dividend payout ratio (consolidated)
(Yen)

(%)

340

120

35.0

330

110

30.0

320

100

24.5
310

23.2

22.8

25.0
20.0

90

10

303.6
6.0

Ordinary dividend

300

295.3

15.0

80

10

5.0

290

70

10.0

80
4.0
3.0

FY2018FY2019FY2020

280

60

270

50

70

70

FY2018FY20195.0

FY20200.0

5

Reorganization
In April 2021, we executed a reorganization to upgrade the organizational structure of the Bank’s headquarters in view of the imminenttransition to a holding company structure in October 2021.
As well as transforming the Bank’s organizational structure to facilitate effective collaboration with the holding company, we willcontinue to implement the market-in approach (customer-first marketing strategy) and strengthen our initiatives for “digitaltransformation,” “regional revitalization,” and the “SDGs.”
1. Implementation of the market-in approach(customer-first marketing strategy)
Change of the Personal Business Division to the Retail Business
Division
Reorganization within the division: Establishment of the Retail
Planning Group, the Retail Business Group, and the Personal Loan
Group

Change of the Corporate Business Division to the Solutions
Business Division
Reorganization within the division: Establishment of the FinanceGroup and the Solutions Group

2. Strengthening of the initiatives for “digital transformation”
Change of the Operational Reform Division to the Digital Reform
Division
Establishment of the Digital Transformation Promotion Group
within the division

3. Strengthening of the initiatives for “regional revitalization”
Change of the Public Business Division to the Regional
Revitalization Division
Establishment of the Regional Revitalization Group within thedivision

4. Strengthening of the initiatives for the “SDGs”
Establishment of the Corporate Consulting Group within theEnterprise Support Division

Establishment of the SDGs Promotion Office within the
Regional Revitalization Division

Promoting digital transformation
Digital technology can dramatically enhance the productivity of existing industry and drive economic growth by contributing
to the transformation of business models and the creation of new businesses. Responding to these developments, we changed
the Operational Reform Division to the Digital Reform Division and established the Digital Transformation Promotion
Group within the division.
We will vigorously promote digital transformation (DX) to achieve two principal objectives: “improvement of usability”
through enrichment of non-face-to-face channels and data-driven mass-marketing and “improvement of productivity” by
expanding the scope of centrally executed business processes and through business process reengineering utilizing digitaltechnology.

Promoting regional revitalization
To step up our initiatives contributing to sustainable growth of the regional economy in collaboration with local governments
and community development organizations and earn Gifu and Aichi prefectures’ deep and enduring confidence in the Bank,
since those prefectures constitute our main field of our business operations, we changed the Public Business Division to the
Regional Revitalization Division and established the Regional Revitalization Group within the division.
We will identify and analyze issues for sustainable growth of the region and implement effective measures to resolve theissues in collaboration with Group companies, local governments, community development organizations, etc. by leveraging
not only our financial intermediary functions but also our knowledge and network.

Addressing the SDGs
In accordance with The Juroku Bank Group SDGs Declaration announced in February 2020, the Group has been addressing
the Sustainable Development Goals (SDGs). To step up the initiatives, we established the SDGs Promotion Office within the
Regional Revitalization Division.
In June 2021, we announced our endorsement of the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD) with the aim of providing useful information to our stakeholders while strengthening our climate change
countermeasures. We are working to establish systems and ensure information disclosure in accordance with the TCFD
recommendations.
In view of the growing interest in the SDGs throughout society, addressing the SDGs may become a precondition for
doing business or a crucial factor in being chosen by investors and consumers.
The Group is committed to playing a central role in inculcating the SDGs among customers and people in the region byoffering diverse solutions through financial services. All officers and employees of the Group will address the SDGs to help
achieve a sustainable society.

6Transition to a Holding Company Structure
As a financial institution with its operating bases in Gifu and Aichi
prefectures, the Bank’s aim has been to become a comprehensive
financial group that achieves sustainable growth with local economies
by creating shared value through dialogues with people in the local
communities so as to contribute to revitalization of the local economy.
At the same time, there have been major changes in the businessenvironment in which regional financial institutions operate, such as theongoing low-interest policy, and intensifying competition acrossindustries and business categories. In order to contribute to therealization of a sustainable society, regional financial institutions must
transform their business models and adapt to deregulation.
For these reasons, the Group has decided to transition to a holding
company structure in order to expand its business domain such as byestablishing new businesses, strengthen collaboration and optimize theallocation of resources within the Group by reforming the thinking andbehavior of our officers and employees, enhance auditing and supervisory
functions, and accelerate business execution.
Under the holding company structure, the Group will create abusiness structure that can respond flexibly to changes in the businessenvironment in order to support its customers’ businesses byconcentrating the Group’s management resources and to fulfill its
obligations toward sustainable growth of the region so as to enhance
corporate value.

Establishment of NOBUNAGA Capital
Village Co., Ltd.
In April 2021, ahead of the transition to a holding company

the region,” NOBUNAGA Capital Village will vigorously support

structure, NOBUNAGA Capital Village Co., Ltd., a wholly-

and foster startups while also tackling business succession andowned subsidiary of the Bank, was established as a company

business rehabilitation. By offering new services and products

specializing in investment, and commenced its operations.

through collaboration between the Group and the enterprises inThrough corporate venture capital firms investing in startups

which NOBUNAGA Capital Village invests, we will contribute tothat can unleash synergies with “regional economies” and “finance,”

the growth and development of customers and the regionaland regional venture capital firms investing in “future leaders ineconomy.

To Achieve Sustainable Growth Together with Stakeholders
By transitioning to a holding company structure to achieve further
development of the Group and sustainable growth with its

I would greatly appreciate the continued support of our
stakeholders.

stakeholders, we will redouble our efforts to create shared value
with our stakeholders and enhance corporate value so as to meettheir expectations.

7