Company Briefings for
the Fiscal Year Ended
March 2024
June 2024

Securities
Code

7327

* Daishi Hokuetsu Financial Group isreferred to as “Daishi Hokuetsu FG” or “FG”

Table of Contents

Highlights■ Medium-Term Management Plan III ................................
25..............................................................................
2
Basic Strategy I Demonstration of Group Comprehensive Capabil
30
Financial Results For Fiscal Year Ended March 2024
Basic Strategy II Pursuit of Productivity Improvement .........................
36
FG’s Consolidated Profit ......................................................................
4
Basic Strategy III Enhancement of Human Capital Value .......................
38
Profit by Division.............................................................................
5
Basic Strategy IV Deepening Risk Management .......................
41
FG Consolidated Change Factors ..........................................
7
Overarching Theme Across Strategies: Deepening the TSUBASA Alliance .................
42
Bank Division
Key Performance Indicators (KPI) ........................................
44
Bank Non-consolidated Change Factors ..........................................
8■ Sustainability Initiatives .................................................
46
Balance of Loans and Bills Discounted ..........................................
9■ Governance & Capital Policy ...........................................
51
Governance Structure supporting Sustainable Growth .....................
Balance of Deposits, etc. ...............................................................
1052
Non-Interest Income ...........................................................................
11
Initiatives to Reduce Cross-shareholdings ...............................
53
Securities ...........................................................................................
12
Changes in Shareholder Return Policy and Dividend Forecast for FYE2025/3 ...............
54
Expenses ...........................................................................................
14
Initiatives to Improve PBR ....................................................
55
Non-Performing Loan Ratio & Net Credit Cost ..........................................
15
Appendix
FG Consolidated Capital Ratio ...............................................................
16
Medium-Term Management Plan II: Key Performance Indicators (KPI) ..............
59
Synergies from Management Integration ..........................................
17
Summary of Financial Results for FYE 2024/3 ...........................
62
FYE2024/3 Dividends (Increase in year-end dividend) ...............................................................
19
FYE2025/3 Earnings Forecast .................................................
64
FYE2025/3 Earnings Forecast .........................................................
20
Loans and Bills Discounted .....................................................
66
Simulation based on Impact of Rising Yen Interest Rate .......................................................
21
Balance of Deposits, etc., and Assets in Custody ........................
68
Medium-Term Management Plan III
Non-Interest Income/Expenses .............................................
69
Sustainable Growth Initiatives by Daishi Hokuetsu Financial Group .............................................
23
Securities Sector ..................................................................
70
Second Medium-Term Management Plan ...............................
24
Non-Performing Loan Ratio & Net Credit Cost ............................
72
Capital Allocation ...............................................................
73
Capital Ratio .....................................................................
74
Training Program for Enhancement of Human Capital Value .....................
75
Financial Position of Group Companies .....................................
761

Highlights of Fiscal Year Ended March 2024
A New Stage of Harvesting Results from Bank
Merger and Birth of New Bank

Medium-Term Management Plan II

April 2021

Final Year of
Medium-Term
Management Plan

March 2024

FYE2024/3
FG Consolidated Profit exceeded the earnings forecast and also
increased year on year

✓ Achieved FG’s consolidated profit target for the final year of the Medium-Term
Management Plan II through Group-wide efforts to maximize the three major
synergies (Merger, Group and TSUBASA)

Annual dividends per share for the fiscal year ended March 2024
increased by 25 yen year on year

✓ Based on the business results for the period under review, the year-end dividend willbe 75 yen, an increase of 5 yen from the original forecast of 70 yen

FG’s consolidated profit (forecast) for the fiscal year ending March2025 is 23 billion yen (up 1.7 billion yen year on year)✓ Under the new “Medium-Term Management Plan III,” take initiatives for “Deepening
and Exploring Group Management”✓ Revise the shareholder return policy (May 2024), aiming for a cumulative dividend
per share and a payout ratio of around 35% during the period of the Medium-Term
Management Plan III.
2

Financial Results
For Fiscal Year Ended
March 20243

FG’s Consolidated Profit
FG’sConsolidated(¥100M)

177

212

201
Forecast(Announced in
May 2023)

Year on Year+¥3.4B(+19.3%)
Vs. Forecast+¥1.1B(+5.4%)
FYE2023/3

FYE2024/3
4

Profit by Division
Bank Nonconsolidated(¥100M)

160

148
154

Forecast(Announced in
May 2023)

Year on Year+¥1.2B(+8.1%)
Vs. Forecast+¥0.6B(+4.2%)
FYE2023/3

FYE2024/3
5

Profit by Division
Group Company
Division(¥100M)* Total Profit of Group companies attributableto owners of parent, excluding the holding
company and the Bank

36

28

Year on Year+¥0.7B(+27.6%)
Securities+¥0.4B (+72.6%) yoy- Increased profits by implementing
consulting proposals that capture
market trends and expand products
to meet diverse needs

Leasing+¥0.3B (+142.5%) yoy

FYE2023/3

FYE2024/3- Increased profit due to growth inlease asset balance as a result of
increase in bank referrals, etc., anddecrease in credit costs, etc.
6

FG Consolidated Change Factors

FG’s consolidated profit increased for the period
under review due to increased profits in both the bank(unconsolidated basis) and Group company divisions(¥100M)

177

Bank Nonconsolidated

FYE2023/3
FG’s Consolidated Profit+12

Consolidated
Adjustment, etc.
Group Companies

+7

+14

212

3.4B

+¥

yoy

FYE2024/3
FG’s Consolidated Profit
7

Bank
Division

Bank Non-consolidated: Change Factors

On an unconsolidated basis, the bank increased
profit for the period under review due to an increase
in interest on loans and non-interest income(¥100M)

Gains orlosses on
securities+55
Interest andForeigncurrency
funding
cost, etc.
(-)
+195

• Foreign currency funding cost (-): +180
Market Investment +169; Sales +10• Decrease in interest on deposits with banks: -10

dividends on
securities+105
Non-interest
income148

Non-interest
Interest
incomeon loans(Salesand bills
Division)
discounted+24+24(MarketInvestment
Division)+32

Expenses
(-)
+2

Net
credit
cost
(-)
+16

Total of Market Investment Division: +21

Extraordinary Taxes,
incomeetc.
(losses)
(-)
-5
+10

160
1.2B

+¥

yoy

Total of Sales Division: +34

FYE2023/3
Bank’s nonconsolidated profit

FYE2024/3
Bank’s nonconsolidated profit

8

Bank
Division

End-Balance of Loans and Bills Discounted

Business(¥100M)

52,881
8,543

14,42829,908FYE2023/3

Consumer

Public money

54,5517,800

14,87731,873

FYE2024/3

Year onYear+ ¥167.0B(+3.1%)

Consumer+¥44.8B (+3.1%) yoy– Increased both mortgage and unsecured loans
due to utilization of non-face-to-face channels

Business+¥196.4B (+6.5%) yoy– Decreased in the prefecture due to factors such as
early repayment of virtually interest-free andunsecured loans (zero-zero loans)– Outside of the prefecture, loans to large companies
with funding needs increased

9

Bank
Division

End-Balance of Deposits, etc.
Individuals(¥100M)

Corporate

86,16187,459

7,009

7,160

22,83323,127

Year onYear+¥129.8B(+1.5%)

Corporate+¥29.3B (+1.2%) yoy

Individuals
56,31757,171+¥85.3B (+1.5%) yoy-

FYE2023/3

FYE2024/3

The balance of deposits, including negotiablecertificates of deposit, increased steadily forboth companies and individuals

10Bank & Sales
Divisions

OthersNon-interest
Income Area

Financial Solutions(¥100M)

Asset management advice

286
262

* Total amount of profit from other businesses, etc., excluding
fees and commissions and other profit, and gains and losses on
government bonds (excluding revenue of Market Investment
Division and foreign currency funding costs)

32

Year onYear+¥2.4B(+9.1%)

38
Income from financial solutions

165
141

+¥2.3B (+16.6%) yoy– Increase in foreign exchange derivatives
transactions for customers, business succession,and M&A

Income from asset management advice

81

88

FYE2023/3

FYE2024/3+¥0.6B (+8.2%) yoy– Increased inheritance business such as
testamentary trusts, in addition to insurance andmutual funds
11Bank & Market
Investment Divisions

End-Balance of Securities * Excluding trading securities

Domestic bonds

Foreign securities

StocksOther securities(¥100M)

30,542
28,595
4,522

5,821

1,432

2,046

6,594

7,122

Year onYear+ ¥194.6B(+6.8%)

Other securities+¥129.9B (+28.7%) yoy– Increased due to diversified investments in equity
mutual funds, REITs, etc.

Foreign securities+¥52.7B (+7.9%) yoy– Increased due to purchase of Government
National Mortgage Association (GNMA) bonds,
which can secure interest margin, and foreignexchange factors (yen depreciation)

16,046

15,551

Domestic bonds-¥49.4B (-3.0%) yoy– Decreased due to restrained purchases of bonds
in preparation for rising interest rates and profittaking sales in response to market trends

FYE2023/3

FYE2024/3

12

Bank & Market
Investment Divisions

Domestic bonds(¥100M)

Valuation Gains or
Losses on Securities* Valuation gains/losses on domestic
bonds and foreign securities areafter taking into account deferredhedging by interest rate swaps

Foreign securities

577

Valuation Gains or Losses on
Securities+¥78.8B yoy

-210

1,077

496
Other securities 0

-155
-326

- Although gain (loss) on valuation of domestic
bonds deteriorated due to higher domestic
interest rates, gain on valuation of equity
securities increased due to higher domestic
stock prices. In addition, gain (loss) on
valuation of other securities improved due tothe weaker yen, and gain (loss) on valuationof foreign securities also improved due to thesale of euro-denominated bonds with low
interest margins, resulting in a significant
improvement in total gain (loss) on valuationof securities

-274
-225

-224
FYE2023/3

FYE2024/3

13

Bank
Division

ExpensesNon-personnel expenses

Taxes(¥100M)

575

577

33

35

Year onYear+ ¥0.2 B(+0.4%)

Non-personnel expenses

237

240

+¥0.2B (+1.2%) yoy-

Strategic investments increased to strengthen
consulting functions and improve customer
convenience

Personnel expenses-¥0.2B (-0.8%) yoy
303

300

-

FYE2023/3

FYE2024/3

Investing in wage increases and personnel
development to strengthen human capital
Decreased due to optimized headcounts
accompanying reduced operations due to
office integration and operational reforms(Natural decrease due to mandatory
retirement, etc.)
14

Bank
Division

Non-Performing
Loan Ratio & Net Credit Cost
Non-performing
loan ratio

(%)

2.32

Net credit cost

Non-performing loan ratio

2.22-0.10 pt yoy(¥100M)

Net credit cost

57
41+¥1.6B yoy--

FYE2023/3

FYE2024/3

Net credit cost increased mainly due to anincrease in the general allowance for doubtful
accounts as a result of an increase in loanbalances, etc.
Continue to focus on supporting business
improvement and revitalization throughcollaboration between Sales and Credit Divisions,while closely monitoring the impact of higher
prices and a weaker yen

15

FG’s Consolidated Capital Ratio
FG’s
Consolidated

(%)

10.23

10.03

International
standard
8%

Year onYear- 0.20 pt- FG’s consolidated capitalratio was maintained at a
sufficient level, exceeding
the national standard of
4% and the international
standard of 8%

Domestic
standard
4%

FYE2023/3

FYE2024/3

16

Management Integration Synergy (Single FY)
Synergies from management integration in a single
fiscal year are progressing faster than the initial plan
(formulated in October 2018)

Synergy effect(Vs. FYE 2018/3 before Management
Integration)FYE March 2024
(single FY)
Result+¥10.2B(+¥4.2B vs. plan)

ResultVs. Plan

+102

+42

Top-line Synergy

+57

+15

Cost Synergy

+76

+15

Negative Synergy

-32

+11

Breakdown(¥100M)< Details of Each Synergy >Top-line Synergy

Cost Synergy

Negative Synergy⚫Loans and bills
discounted and financial
solutions⚫Asset management
advice⚫Commission area, etc.

⚫Decrease in personnel
expenses⚫Decrease in systemadministration costs⚫Decrease in outsourcing
expenses, etc.

⚫Management
integration expenses

17Management Integration Synergy (Cumulative Total)
Medium-Term Management Plan I

Medium-Term Management Plan II

Medium-Term Management Plan III

Positive synergies since the merger(turned positive in a single year)

Negative synergy prevailed
until the merger

Synergy Effects (¥100M)

Blue bar graph (light blue: initial plan)
Synergy effects for single FY
Orange line graph (dashed lines for FY2023 and thereafter are estimates)
Cumulative synergy effects
Cumulative synergies
Gray line graphturned positive in theInitial plan for cumulative
5th fiscal year since
the Management
synergy effects
159
Integration
67

57

-22

-75

-68

2018年度FY20182019年度FY2019

102

-23

-90
2020年度FY20202021年度FY2021

FG Consolidated Gross Profit(¥100M)

971
909

FY2017

170

80

8
-75

Expect more than 35
billion yen in the final
year of the Medium-Term
Management Plan III

2022年度FY2022

2023年度FY2023

2025年度FY2025

2026年度FY2026

FG Consolidated Operating Expenses(¥100M)

706-73(-10％)+62(+6%)

FY20232024年度FY2024FY2017633* Figures for FY2017 are asimple aggregate of Daishi
Bank and Hokuetsu Bank’s
figures
FY202318

FYE2024/3 Dividends: Increase in Year-End Dividend
The total annual dividend per share of the ordinary
and commemorative dividends was
145 yen (+25 yen yoy)
Ordinary dividend
Commemorative
dividend

Increase in annual dividend by 15 yen based on the earnings inaccordance with shareholder return policy
Annual dividend of 10 yen considering the 5th anniversary of FG and150th anniversary of the Bank
* It has already been announced that the commemorative dividend for FYE2024/3 will
be an ordinary dividend for FYE2025/3

New!

Year-end dividend increased
Annual dividend per share by 5 yen from the forecast

Details of Dividends

Year-end dividendInterim dividend[Completed]considering the results of theperiod under review

Previous dividend
forecast

Finalamount(Announced on May 12,
2023)

Annualtotal

FYE2024/3

70.00 yen

70.00 yen

75.00 yen

145.00 yen

Ordinary dividend

65.00 yen

65.00 yen

70.00 yen

135.00 yen

Commemorative
dividend

5.00 yen

5.00 yen

5.00 yen

10.00 yen

FYE2023/3

60.00 yen

60.00 yen(+¥25 yoy)

120.00 yen

19

FYE2025/3 Earnings Forecast⚫ The FG consolidated profit is expected to increase 1.7 billion yen (+8.4%) year on

year to 23 billion yen⚫ Under the new “Medium-Term Management Plan III,” we will work on “Deepening and Exploring
Group Management” and strengthen the top line by integrating the Group’s financial and informationintermediary functions, network, and expertise, and by strengthening the Group’s consulting function
with the community and customers as the starting point.
⚫ This plan does not take into account the effects of the Bank of Japan’s monetary policy changes. We
intend to revise the plan as necessary, keeping an eye on future monetary policy and market
conditions
Medium-Term
Management Plan I

Medium-Term
Management Plan III

Medium-Term Management Plan II

Bank’s non-consolidated profit

212

FG’s Consolidated Profit(¥100M)

101

151
107

FYE2021/3

177
148

160

230
190

+¥1.7B yoy

121

FYE2022/3

FYE2023/3

FYE2024/3

FYE2025/3
Forecast

20

Reference

Simulation Based on Impact of Rising
Yen Interest Rate (Estimate)

Balance Sheet of Yen(Management and procurement structure)(¥100M)
End of FYE2024/3

Estimate of the annual impact of a rise in interest rates(in yen) on net interest income
FY2026
Scenario
FY2024
Final Year of the Medium(¥100M)

Term Management Plan III

Scenario-1 No additional

+10

+14

Loans andbills
discounted

Scenario-2 1 additional rate

+19

+41

53,975

Scenario-3 2 additional rate

+18

+54

rate hikehike in FY2024

hikes in FY2024

Deposits, etc.

87,221(End of FYE2024/3)

Composition of loans and bills
discounted (End of FYE2024/3)

Others 3.7%

Fixed interest rate
≤ 1 year

Composition of deposits, etc.

Market floating
rate

Securities

23,420Time
deposits
23.3%

Due frombanks

20,845

BOJ operation

11,554
OthersOthers

6.6%

Fixed interest rate >1 year ≤ 3 years

10.3%

18.5%

Liquiddeposits
73.0%

10.4%
Short-term
prime-ratelinked type

34.3%

Fixed interest
rate > 3 years≤ 5 years

Fixedinterest rate
> 5 years

20.0%

Note: Excluding
overdue loans

21Plan period: 2024/4 - 2027/3

Medium-Term
Management Plan III

22

Sustainable Growth Initiatives by Daishi
Hokuetsu Financial Group
Medium-Term Management Plan I
1. Management Integration
Created through the Management
Integration of Daishi Bank andHokuetsu Bank
October 2018
Management integration by the regional bankswith top two market shares in the same
prefecture, ahead of any other bank in the country

Medium-Term Management Plan II
Top-Priority Topic:

1

reformRelationship of trust withcustomers built over 140 years

knowhow

Reassignment personnel
to strategic areas

Cost reduction andinvestment in strategic
areas

2

October 2015–

Strengthen
consulting
functions
Productivity
improvement

Use ofGroupfunctions

Exploration of
new business

Management
Philosophy and Vision

Creation of new value
through financial andinformation intermediaryfunctionsGroup Synergy

Deepening
existing
businesses

2. TSUBASA Alliance
Regional Banks’ Collaboration
Framework

Toward Sustainable
GrowthMerger Synergy⚫ Office integration ⚫ Streamlining of HQ⚫ Operation⚫ Sharing ofJanuary 2021
Bank merger, birth of a
new bank, integration ofsystem/administration

Demonstration of Three
Major Synergies

Medium-Term
Management Plan III

Strengthen
consulting
functionsImprovement ofmanagement efficiency

Strengthen GroupManagement
Framework

3 TSUBASA Partnership Synergy
Main engine toaccelerate innovation

Pursuit of top-line
and cost synergy

A lasting contribution
to the regional
development
23

Previous Medium-Term Management Plan:

Results of Medium-Term Management Plan II
FG’s Consolidated Profit
Medium-Term
Management Plan II

Medium-Term
Management Plan I(¥100M)212+104(+96%)

107

About 2 times
the profit

FYE2021/3

FYE2024/3

Maximization ofMerger Synergy
Cumulative total

Empower
consulting talent

Matching personnel,
etc., with clientcompanies
Assign full-time HQApprox. 100
specialists to the bank’sGroup Companies
block head offices
Approx. 70

Approx. 70 in total

Bank Division
Approx. 280

No. of reassigned
personnel

Senior Consultant(Branch Manager level)

Corporate
CM

Medium-Term
Management Plan I(¥100M)

Medium-Term
Management Plan II

971

+122
(+14%)

Individual
CM

CM: Consultant Manager

FG Consolidated Operating
ExpensesMedium-Term
Management Plan I

Strengthen
the top line

849

FYE2021/3

FYE2024/3◼ Transition to GroupManagement Framework

Build a multi-tieredgovernance framework

Group company
management
Group Strategy
Promotion Dept.

Group sales
management
Regional Creation
Dept.

Medium-Term
Management Plan II-86(¥100M)

719

Maximization ofGroup Synergy◼ Perform dynamic resource
reallocation
Approx. 450

FG Consolidated Gross Profit(-11%)

633

Strengthen the
management
base

FYE2021/3

FYE2024/3

Maximization of
TSUBASA Partnership
Synergy◼ Used as a main engine toaccelerate innovation

Leverage the scale of the largest
regional banks

Group Company Top MeetingGroup Synergy MeetingGroup companies excluding banks

Use geographic features ofneighboring prefectures24New Medium-Term Management Plan:

Medium-Term Management Plan III
Launched the “Medium-Term Management Plan III,”setting the stage for a leap forward

Synergies: Level of demonstration

FY2018-2020

FY2021-2023
2023/102021/1

2018/10

Establishment of FG

Bank merger andintegration of systems
and administration
Post-bankmergerUp to management
integration and bank merger

FY2024-2026

The 5th anniversary of FG
2023/11

The 150th anniversaryof the Bank

“DasH!!120” *2“Start-up 180” *1Medium-Term
Management PlanII

Medium-Term
Management Plan
I

Stage for a leap
forwardMedium-Term
Management Plan
III
Slogan[Basic Approach during Each Plan Period]
Lay the groundwork to
maximize merger synergies

Demonstration of Three Major
Synergies(Merger, Group, TSUBASA)

Deepening and Exploring
Group Management*1: Period of rapid and intensive implementation of various measures to realize synergies from management integration (180 days)*2: Period during which various measures were implemented quickly and intensively as the main activity period for the early realization ofsynergies from the bank merger (120 days)

25

Key Management Issues (Materiality)
based on Business Environment
Resolving key management issues to achieve sustainablegrowth◼ Sustainability management that aims to create a virtuous circle of sustainable growth for society and theCompany by addressing both “Environmental and Social Challenges” and “Financial Challenges”

Key Management Issues (Materiality) in the Medium-Term Management Plan III“Environmental andSocial Challenges”“Financial Challenges”
Deepening
Sustainability
Management

E

Active efforts to address global
environmental issues

S

Revitalizing regional economies andsociety by solving community andcustomer issues
Strengthen trusted relationships
with stakeholders through improved
governance, including ensuring
diversity

G

Growthpotential

Strengthening
profitability

Efficiency

Productivity
improvement

Soundnessof business

Maintain and improvebusiness healthSignificant change with increasing complexity and uncertainty

Changes inthe businessenvironment⚫ Progress of declining population, low birth rate, and aging

population⚫ Changes in social and industrial structure through DX⚫ Advances in web, online, and cashless transactions⚫ Changes in people’s lifestyles and consumption behaviors⚫ Acceleration of globalization⚫ Deregulation⚫ Entry of other industries into thefinancial sector⚫ Acceleration of carbon neutrality⚫ Growing importance of sustainability management⚫ Further rise in geopolitical risk
⚫ Shifts in monetary policy between Japan, the US

and Europe

etc.

26

Medium-Term Management Plan III:

Basic Strategies & Key Tactics
Daishi Hokuetsu FG’s Strategy for Realizing the Medium-Term
Management Plan III◼ To solve key management issues (materiality), we will work on the “Four Basic Strategies” and the common theme forall strategies, “Deepening the TSUBASA Alliance”

Resolving the Key Management Issues (Materiality) through“Deepening and Exploring Group Management”
Basic Strategy

I

Basic Strategy

Demonstration of Group
Comprehensive Capabilities

Pursuit of Productivity
Improvement

Key Tactics➊ Strengthen Group’s consulting functions for communities
and customers❷ Increase promotion of sustainability in communities❸ Explore new areas of promotion❹ Deepen investment in securities

Basic Strategy

III

II

Key Tactics❺ Improve customer experience at every touchpoint❻ Achieve Group-wide operational efficiencies

Basic
Strategy

Enhancement of Human Capital
Value
Key Tactics❼ Practice human capital management to maximize thecollective strengths of the Group❽ Strengthen the human capital base with expertise anddiversity to solve local and customer issues❾ Create a work environment that fosters job satisfaction
and happiness

Basic Strategy

IV

Deepening Risk Management
Key Tactics❿ Conduct business by making compliance a toppriority⓫ Deepen Group governance⓬ Further evolve the Risk Management Framework

Overarching Theme Across Strategies: Deepening the TSUBASA Alliance27Medium-Term Management Plan III:Key Performance Indicators (KPI)
The level targeted in the “Stage for a Leap Forward”
Medium-Term Management Plan I

Medium-Term Management Plan II

Medium-Term Management
Plan IIIThe plan will be revised as necessary inlight of monetary policy, market
conditions, and other factors

Consolidated
OHR(%)
Consolidated
operating expenses
Consolidated grossprofit76.9

79.0

The impact of the Bank of Japan’s monetary
policy changes announced on March 19, 2024,
has not been factored in

84.7
71.2

68.5

65.1

64% level568 *22021/1
Bank merger
Integration of systems
and administration

Consolidated
Profit(¥100M)

128*1

FY2018FY2019*1: Profit attributable to owners of parent

212

151

61% level

270

230

177

107

FY2020

FY2021

FY2022

FY2023

FY 2024
Earnings
Forecast*2: In FY2018, we recorded a gain on bargain purchase of ¥47.2 billion

FY2025

FY2026 Plan

28

Medium-Term Management Plan III:

Factors Contributing to Changes in FG Consolidated Profit
Further increase in top line by demonstrating the Group’s
comprehensive capabilities
Medium-Term
Management
Plan II

Medium-Term Management Plan III
FY2024-2026

Demonstration of Group
Comprehensive Capabilities

Extraordinary
income (losses)

Revenue ofMarketInvestment
DivisionInterest on
loans andbills
discounted

Non-interest
income(SalesDivision)Group
Companies

+9

+16

+32

Net credit
cost (-)

+20

-7

+24

Consolidated
operatingexpenses(-) +0270

Taxes, etc.
(-)

+26

Other andconsolidated
adjustment*

-24

212
Transformation of businessportfolios

Vs. FYE2024/3

5.8B

+¥

Bank Division

Group Company
Division

FY2023 FG
Consolidated Profit* Decrease in accrued interest due to the Bank ofJapan’s “Special Current Account System forStrengthening Regional Finance” and decrease ingain on bargain purchase due to consolidation of
Daishi Hokuetsu IT Solutions as a subsidiary, etc.

FY2026 FG
Consolidated Profit
29Basic Strategy I

Demonstration of Group Comprehensive Capabilities
Strengthen Group’s Consulting Functions: Corporate Sector“Deepening”: Developing markets in Niigata“Exploration”: Cultivating markets outside Niigata

Strengthen regional revitalization

Strengthen partnerships within and outside theprefecture that lead to community and customer growth
Strengthen sales promotion
framework outside Niigata

Revitalization of regional economy◼ Strengthen regional revitalization efforts throughcollaboration with business, government, external[Bank branch network]
alliances, etc.
(Bankbranches as of June 2024)➔ Led by the “Human Capital Value Enhancement
Project”, a cross-organizational project of the Bank Niigata Prefecture:
136 bases
and Group companies
Fukushima Prefecture:
19-employee
1 baseorganization
Share of loan
- Main initiative areas (As of June 2024)
Decarbonization& energy

Productivity
improvement& DX

Promotionof tourism

in Niigata
Prefecture

Health andmedical care

Infrastructure(2024/3)*

etc.

(Examples of regional revitalization project)⚫ RWE Offshore Wind Japan Murakami
and Tainai Project⚫ Myoko District Development Project⚫ Comprehensive Revitalization Project inetc.
the Sado Region

51%◼ In addition to loan customers, strengthen
corporate consulting sales, including depositonly customers- Exercise of advisory functions in accordancewith the size of the net assets -Kanagawa Prefecture:
1 base> 40%(Corporate sector)≥ 100M yen

19 people ➔ Plan to expand to anorganization of
approximately 30 people- Main promotion areas Structured
finance

Practice
higher-value consulting
sales to strengthen
relationships andimprove profitability

Businessloan

Wealth segment
business

Tokyo Sales HQ(July, Tokyo Branch building)≥ 1B yen clients≥ 1B yenoutside Niigata

Saitama Prefecture:
2 basesTokyo: 2 bases% ofrevenueby net assets

Personnel stationed

Gunma Prefecture:
2 bases

Facilitate corporate/owner transactions< 100 million
yen, sole
proprietorship

New!

◼ Upgrade the Tokyo Office of Sales HQ to“Tokyo Sales HQ” (planned for July 2024)

Corporate
solutions

TSUBASA
Partnershipetc.

➔ Strengthen promotion outside
the Tokyo metropolitan area byleveraging the branch network

Average balance of businessloans

35,321(¥100M)

30,341+4,980(Districts other than the above)
One office each in Hokkaido,
Toyama, Aichi and Osaka Prefectures* Calculated by the Company basedon documents, etc. by Nikkin(+16%)FY2023

FY2026Plan

30

Basic Strategy I

Demonstration of Group Comprehensive Capabilities
Strengthen Group’s Consulting Functions: Corporate Sector
Support for DX throughout theregionSupport for local economic
development◼ “DX All Branch Campaign” to promote DX of businesscustomers based on feasibility assessment
Productivity◼ Practice multifaceted consulting sales for capital
investment needs➔ Strengthen support for
Financial services revenue
resolving various issues(Syndicated loans, private
triggered by capital investment (¥100M)
placements, etc.)

Results of Client
Questionnaire Survey

Future Capital Investment Plan

(Planned capital investment for FYE2025/3)
Total
number of cases> 1,400 cases

Totalamount> ¥360B(Period: 2022/10 to 2024/3)

49
Cooperation➔ Leverage “M&A Platform”
where sales branches take theinitiative
Cooperation◼ Started handling “DX Declaration
Formulation Support Service”

Equity solution-related
revenues(¥100M)(M&A, business succession, funds, etc.)

16

23

+7

(+46%)✓ Internet
banking✓ Electronic
payment etc.

(April 2024)

New!

Launch of “Daishi Hokuetsu DX
Consulting Service” to support DX
promotion by local companies (April
2024)➔ Started offering “DX Declaration
Formulation Support Service” asthe first service- Services -Investment subsidiary➔ Utilization of “Daishi Hokuetsu
Regional Revitalization
Initiatives Fund” (No. 1 & 2)

Digitalization➔ Of these, a total of
3,408 contracts
were signed

FY2026 Plan

◼ Strengthen equity business for business succession,
creation of new business areas, and other needs
Equity business line

etc.

%

(+68%)FY2023

Number of needs 33
Cumulative total %✓ GA & HR✓ Accounting✓ Sales Admin

67 5,388 cases

+20

29

improvement

Business customer needs
assessment on DX

FY2023

FY2026 Plan

⚫ Creation of DX Declaration &Plan⚫ Creation of DX Declaration
movie▲ DX Declaration
sample31

Basic Strategy I

Demonstration of Group Comprehensive Capabilities
Strengthen the Group’s Consulting Functions: Individual Sector
Demonstrate consulting functions in response tocustomer life events

Enhance consulting functions through faceto-face channels

Strengthen asset management type business
Balance of Group assets(¥100M)
under custody
Ranked 8th
Number of NISA
among regional banks
accounts

16,900(FYE2024/3)

As is(+16%)⚫ Personal loan
⚫ Wealth management(¥100M)

15,986

14,646+1,340(+9%)(Asset formation segment)

Regional bank,

Source: Nikkin Report(As of May 20, 2024)

Average balance ofconsumer loans

in Niigata
Prefecture+2,368Source: Nikkin Investment Trust Information(As of February 26, 2024)

ranked No. 1

10 Plazas

14,532(As of December 31, 2023)

Life insurance
fee income

Strengthen the functions ofConsulting Plaza(Areas of improvement)

FY2023

FY2026Plan

Medium-Term ⚫ Hybrid sales combining the face
to face and non-face to face
Plan III⚫ Asset management advice for
wealthy segment

FY2023

FY2026Plan

32

Basic Strategy I

Demonstration of Group Comprehensive Capabilities
Strengthen Group’s Consulting Functions: Deepen and
Explore FG Group Functions- Provide a one-stop solution for challenges faced by communities and customers -“Deepening”

Further deepen our business domain
with a Group-wide sales force

15-company
framework(Including FG and banking subsidiaries)

Completed Group reorganization,
including streamlining ofduplicated functions, in theprevious Medium-Term
Management Plan

Financial area
Bank
Securities

Leasing

Hokuetsu Lease

Creditguarantee

Daishi Guaranty
Hokuetsu Credit
Guarantee

Leasing

Fund Management
Card

Daishi JCB Card
Daishi DC Card / Hokuetsu Card

- Expansion of Business Areas to Resolve Challenges of Regions and Customers -Expansion of new promotion areas

Development of new business
areas

New!

◼ Department dedicated to the study, planning and executionof new business entry, etc.
Establish New Business Planning Office within the FG
Group Strategic Promotion Department

Expansion of business areas
through M&A

Staffing agency◼ Acquisition of “agent business” from companies in
Niigata Prefecture to expand functions for direct placementNew!
of specialized personnel, etc. (March 2024)
Senior(Fee-based staffing services)
Executives
Number ofstaffing requests
received

1,429
cases

+286
(+20%)(Cumulative total fromFY2022October 2019)

SystemNumber of Group business(No. of partners)clients*

Staffing
Consulting &research➔ During the previous MediumTerm Management Plan,already increased approximately Monoline
type
70 strategic personnel

Group
Double- Companies
track type

Bank

Monoline
type

FY202335%

Breakdown by
needs

1,715
cases

General staff

FY202365%

Group company revenue(¥100M)

69,00061,512

Regional trading
companyGroup
Companies(Scheduled for July 2024)& Managers

Non-financial area

Further strengthen“double-track”
cooperation“Exploration”

45
36+7,488+9(+12%)(+25%)FY2026 Plan

FY2023

FY2026 Plan

* Number of corporate clients with recurring business with FG Group companies (total)

33

Basic Strategy I

Demonstration of Group Comprehensive Capabilities
Strengthen Group’s Consulting Functions: Business Portfolio
Transformation
Improve the Group’s growth potential through“Business Portfolio Transformation”

5 Indicators for Business Portfolio◼ Maximize FG’s consolidated profit through Group-wide efforts to improve fiveprofitability indicators
Bank
DivisionGroup
Company
Division

Consolidated
Profit➔ Strengthen the earning power of each Group company by formulating andimplementing Plan-Do-Check-Action (PDCA) strategies optimized for each Group
company based on the business environment, strengths and weaknesses, future
growth potential, and sustainability

FG Sales Division revenue(¥100M)

1. Interest on business loans and bills discounted
2. Interest on consumer loans and bills
discounted
3. Corporate relations revenue
4. Individual relations revenue
5. Group company revenue amount(☞ p. 44 for indicator targets)

Group Company profit

Interest on
Individual
Interest on consumer
relationsloans
andbusiness
Corporate+15 Others
billsloans andrelationsdiscounted
bills
+4
+9
discounted

881
Leasing
Securities

+5

831
+

(Profit attributable to owners of parent)(¥100M)+26

36

5B yen in
3 years

FY2023

Transformation

FY2026 Plan

FY2023+2

System+1

Staffing+0.4

Main business
Securities

Card

+0.3

Others+0.4

453-year earnings
growth rate
> 40% ⇧

Leasing> 30% ⇧

System> 100% ⇧Staffing> 90% ⇧

Card

> 5% ⇧

Fund
Management> 30% ⇧

Regional trading
company> 10% ⇧

Consultancy> 5% ⇧FY2026 Plan

34

Basic Strategy I

Demonstration of Group Comprehensive Capabilities
Strengthen Group’s Consulting Functions: Securities
Investment
End-Balance of Securities
Medium-Term Management
Plan II

Basic Policy on Securities Investment
Medium-Term Management
Plan III(¥100M)
Domestic bonds

Foreign securities

StocksOther securities+2,222(+7%)+1,946
(+6%)

1,432

¥3,200B
level

30,542

28,595
4,522

32,764
5,801

5,821

16,046

2,024

2,046

FY2022

FY202317,753

FY2024 Plan

Strengthen organizational capabilities and human capitaldevelopment related to securities investment management[Staffing Plan for Securities Investment Personnel]

7,122

15,551⚫ Enhance the value of human capital by developing humanresources capable of responding to a volatile, uncertain andcomplex market environment, and strengthen the management
capabilities of the organization to create a framework capable ofresponding quickly to market fluctuations➔ Planning to increase the number of securities investment personnel
in order to strengthen organizational investment capabilities➔ Promote diversity by appointing of women employees, andcontinue to strengthen practical skills and utilize outside knowledge
by sending employees to external training programs

7,186
6,594

⚫ Strive to ensure stable earnings and improve valuation gains/losses
by recognizing changes in the market environment and reviewing
our portfolio with agility and decisiveness, as well as paying
attention to liquidity and transparency

FY2026 Plan

Asset class2024/3 end

2027/3 end(Plan)

Management Supervisor

2

2

±0

Domestic bonds

2

3

+1

Foreign securities

1

3

+2

Stocks2

3+1

Investment trust

4

4

±0

Dispatch to external
training

1

2

+1

Total

12

17

+5

Vs. 2024/3
end

35

Basic Strategy II

Pursuit of Productivity Improvement
Achieve Group-wide operational efficiencies
Medium-Term
Management Plan II

FG Group’s efforts to improve labor productivity
Establish a cross-organizational
promotion framework

Consolidated
OHR▲Establishment of adepartment dedicated to FG

Group
companies◼ Practice of “FG-Wide All StoreECRS Campaign”

Practice of “FG-Wide All StoreECRS Campaign”= Eliminate= Combine= Rearrange= Simplify

65.1 64% level

61% level(Scheduled for July 2024)

50

Strategic
investment
amountGroup-wide
use of IT(¥100M)➔ Establish a system to implement the PDCA cycle forvarious actions throughout the FG GroupWork to improve labor productivity (increase value added per employee)

E
C
R
S

68.5

New!
Productivity
Improvement Office

Bank HQ
departments

71.2

(%)

Chairperson: FG
President

FG HQ
departments➔ Improve consolidated OHR by increasing productivity
and ensure execution of strategic investments

New!

◼ Establishment of “Productivity Improvement
and DX Promotion Committee” (Scheduled for July 2024)
chaired by FG President

Medium-Term
Management Plan III

10
FY2021

13
FY202222

FY2023

FY2024Plan

FY2025Plan

FY2026Plan

Significant workload reduction

Major review of HQ operations(Bank Division, Sales Offices, etc.)(Bank Division)

Keyadministrationand office hours Promotionof DX
at branches, etc.

50%
reductionKeyadministrationand office hours
Consolidation,at businessrestructuring,
centers, etc.

50%
reductionetc., of theCenter

FY2026 Plan
FY2026 Plan
FY2023
FY2023⚫ Together with store optimization, etc., 300 or more employees will be createdover the three-year period of the Medium-Term Management Plan
New!
➔ Introduced external consulting services to halve the workload of sales
offices and HQ (May 2024)

36

Basic Strategy II

Pursuit of Productivity Improvement
Next!

Improve customer experience at every touch point➔ Planning to add
asset management
functions(Scheduled for FY2024)

Improve UX by linking face-to-face andnon-face-to-face channels
Strengthen non-face-to-facechannel through DX

Strengthen face-to-face channel◼ Optimize branch network◼ Strengthen the number of “digital customers”
as the basis for non-face-to-face transactions(deepen sales structure in Niigata Prefecture)

Medium-Term
Management Plan I

Medium-Term
Management Plan II(Bank Division: Number of sales offices)

-53

201

Post-bankmerger
-26% decrease

At the time of Bank
Merger in January 2021

Medium-Term
Management Plan III

Responding to behavioral changes
Improve digital transaction
functions, etc.

148

Review offunctions to
be integratedor
discontinued

March 2024

Number of digital customers

New!

New!

Move from current 1.5 million
non-digital customers

Announced themerger andclosure of two
offices(April 2024)

80(in tens of thousands)

Also expanding the use of direct
payment of national tax➔ Received letter of appreciation from
Kanto Shinetsu Regional Taxation
Bureau for FG’s efforts (May 2024)

35 +44 0,000(+126%)

Medium-Term Plan III

FY2023

FY2026 Plan
▲ Personal Web Service “My Page”◼ Maintaining and increasing the number of sales
representatives to strengthen the advisory function
Bank Division (bankers) by type of business(making mortgage procedures online)◼ Improve the functionality of
the “CONNECT-BIZ” portal for businesses

Number of companies using
the business portal

4,500(Number of companies)

(%)
Sales
Administration
OthersContinue toexpand application
functions

27

Sales

March 2024
Number ofbanker

50 %28 March 2027
Number ofbankerApprox.

3,100

23

Approx.

2,800

17

Sales

⚫ Internal bulletin⚫ Video streaming
board⚫ Provision of% ⚫ Group messages
exclusive products⚫ Safety confirmation ⚫ Fund management
function
etc.

55➔ Deliver value to businesses andentrepreneurs + employees+3,396
1,104 (+307%)
FY2023

FY2026 Plan

37

Basic Strategy III

Enhancement of Human Capital Value
Practice human capital management to maximize thecollective strengths of the Group
Achieve a virtuous cycle that further
enhances the value of FG’s human capital

Enhancement of Human Capital Value for
Sustainable Value Creation
Establish a cross-organizational
promotion framework

New!

◼ Establishment of a “Human Capital Value Enhancement
Committee” chaired by the FG President(Scheduled for July 2024)

Chairperson: FG
President

Practice humancapital management tomaximize the collective
strengths of the GroupStrengthen the humancapital base with expertiseand diversity to solve
local and customer issues

Enhancementof Human
Capital Value➔ Improve systemand structure

New!

➔ Human capitalstrengths

FG Human Capital
Strategy Department
FG HQ
departments

Bank HQ
departments

Groupcompanies▲ Renamed from FG Human Resources
Planning Department(Scheduled for July 2024)

Create a work
environment that
fosters job satisfaction
and happiness➔Workplaceenvironment➔ Establish a PDCA system for FG Group-wide human capital
strategy, human capital disclosure and personnel program andother matters

Establish infrastructure for FG
human capital information and data

Humancapital data

◼ Implementation of “Career Support System” (April 2024) New!
⚫ Introduction of “Career Support System” to visualize the value of human capital andimplement human capital management⚫ Clarify the definition of job skills and continue to improve acquired skills“Career Support System”(Talent Management System)
First implemented at theBank
To be extended to Group
companies in the future(Service Name: “Kaonavi”)

Group
Companies

Analysis

Bank

Human
capitalmanagement

Group
Companies
Education& training

AssignmentGroup
Companies

Recruitment
coordination

Group
Companies➔ Group-wide integrated management to move fromhuman resources management at each company
to “Group Human Capital Management”
38

Basic Strategy III

Enhancement of Human Capital Value
Strengthen the human capital base with expertise and diversity tosolve local and customer issues
Strengthen human capital development to improveexpertise and practical skills
Cultivate human resources with highlevels of competence and expertise◼ Cultivate and strengthen “wealth managementadvisory human capital”
Skill Rank

Gold (Major corresponding segments)(Corporate owners/Wealth segment)
Silver (Semi-wealth segment)
Bronze (Asset formation segment)(%)

7
Beginning
49 of FY2023
42

14
39 End ofSupport is also
provided by HQ
specialists

Gold Qualification
Holders

207 people

FY202346(+88 compared to
beginning of period)

Strengthen the promotion of DE&I
(Diversity, Equity & Inclusion)
Ensure diversity in FG’s humancapital base
◼ Plan and formulate measures to promote the activities ofdiverse human capital
New! Establish “DE&I (Diversity, Equity & Inclusion) Promotion
Office” within FG Human Capital Strategy Department as a
dedicated department (planned for July 2024)
Daishi Hokuetsu Bank
(deputy level and above)(%)◼ Develop and strengthen “Human Capital for Group
Collaboration”
Skill Rank(%)

Skill Level 1 (Corresponding skills)(Sufficient understanding of the products and services of each Group company)
Skill Level 2 (Ability to appropriately match Group functions to emerging needs)
Skill Level 3 (Ability to appropriately match Group functions to latent needs)

4

Bank/
Beginning
corporate sales 40 of FY2023
55
representatives

823

End of
FY202368

Skill Level 3 holders
59 people(+25 compared to
beginning of period)◼ Cross-organizational project⚫ “Project 2030” to consider a vision of FG in 2030,
mainly by young staff (from FY2021)⚫ Enhancing practical skills by involving staff from the
Bank and Group companies in regional revitalization
projects “Human Capital Value Enhancement
Project” (from FY2023)

Ratio of women in management positions
25.2

25.8

26.0

FY2021

FY2022

FY2023

FY2026 Plan

Daishi Hokuetsu Bank

% of employees taking childcare leave(men and women combined)≥ 100%≥ 100%(%)≥ 100%

73.3

FY2021▲ “Project 2030”≥ 27.0%

FY2022

FY2023

FY2026 Plan

◼ Promotion of active participation by diverse
talents (Daishi Hokuetsu Bank)⚫ “Ratio of hiring experienced employees”: 13% (FY2022) ➔ 20% (FY2023)⚫ Number of users of the “Side Job and Concurrent Employment
39
System” (cumulative total from March 2023): 35

Basic Strategy III

Enhancement of Human Capital Value
Create a work environment that fosters job satisfaction andhappiness
Create workplace environments andstrengthen health management framework

Improve employee engagement◼ Conducted dialogue and exchange
between management and staff
Dialogue andexchange meetings Attended by approx.
15,000 people inwith officers

Regular meetings
with employees of FG
Group companies on
various topics

Achieved the “White 500” certification for the Excellent
Corporations for Health Management 2024 (March 2024)
FG received two
years in a row

approx. 600 venues

Banks received forseven consecutive
years(Cumulative total from FY2021)

President’s briefing for managers“Isshi Koryukai”
26 times
About 1,100 people participated(Cumulative total from FY2021)

President’s briefing for young
employees“Isshi Koryukai Next”
3 times
About 100 people participated(Cumulative total from FY2021)

New!

➔ The only company in Niigata
Prefecture to receive this certification
for seven consecutive years

Certified for “Platinum
Kurumin Plus” (May 2023)

Certified for “Platinum
L-boshi” (May 2023)

First company
in Niigata
Prefecture toacquire twocertifications▲ “Isshi Koryukai Next”
Build a human capitalbase and organizational
culture to realize wellbeing⚫ Wage increase(two years in a row)
⚫ Increased starting salary(two years in a row)
⚫ Improve employee benefits
etc.

Foster a sense oforganizational unity

Support selfdirected careerdevelopment

Achievethe well-beingof the Group’s
human capital

Certified for “Sports Yell
Company 2024” (March 2024)
Financial wellness
Financial security

Maximize
performance
Promote HealthManagement

Improve workplaceenvironment;
Transform work styleNew!

Certified for two
consecutive years⚫ Walking Campaign⚫ Yoga Seminar⚫ Loan of wearable devicesetc.

▲ Yoga Seminar

40

Basic Strategy IV

Deepening Risk Management
Risk management practices in response to changes in thebusiness environment
Maintain and improve businesshealthFG’s Consolidated
Capital Ratio≥ 10%

Further evolve the Risk Management
Framework

Basic
Strategies
I & II

Basic
Strategy IV

Strengthening
profitability

Risk asset
control◼ Addressing the issue of rising domestic interest rates⚫ Implementing a four-step response to changes in the interest
rate environment, considering different possible responses tochanges in rising domestic interest rates

During the Medium-Term
Management Plan III

Additional rate hikePhase 2End of negativeinterest rate policy

Phase 4

Final phase of rate
hikes

Support for business
improvement
and revitalization

Investment
Toward Sustainable
Growthetc.

Trends in concentration of major creditors(Percentage of top 100 creditors, including national andregional governments)

32.53%

Strengthen
cooperation

26.75%

Sales Division
Consulting
supportFYE2019/3(At the time of management
integration)

FYE2024/3

Strengthen IT risk management

Leverage
RORA
Leverage
RAF

Phase III

Credit division➔ Implement appropriate control of FG’s consolidated capital
adequacy ratio with a target of 10% or more
- Key Initiatives Capital ratio
management
through ALM Risk
Management
Committee

Revision of the YCC◼ Contain credit costs and strengthen credit risk control
functions

Expand risk taking
for regional
contribution
Enhancementof shareholder returns(☞ p. 54 for details)

Phase INew!
◼ Establishment of FG System
Management Department (planned for July 2024)

FIRB
Transition
Initiativeetc.

(☞ pp. 55-56 for efforts to improve PBR and ROE)

⚫ A new department will be established in FG to strengthen theGroup’s overall IT strategy and risk management structure⚫ The “IT Risk Management Committee” has been established in
the FG to manage the increasingly complex IT risks (April 2024)

41

Overarching Theme Across Strategies:

Deepening the TSUBASA Alliance
TSUBASA Alliance, the largest regional banking framework for
wide-area collaboration
Leverage economies of scale and thebenefits of information collaboration

Launched in
2015/10

2015

2023

Launch of the TSUBASA
Alliance(October 2015)⚫ Launched by three banks(our bank, Chiba, andChugoku)⚫ Introduction of TSUBASA general-purpose paperlesssystem (September)⚫ Establishment of TSUBASA-AML Center, Ltd.
⚫
⚫

(November)(Our bank, Chiba, Chugoku and Nomura ResearchInstitute)
Launch of TSUBASA Trainee Program (October)
Launch of the TSUBASA Alliance Co., Ltd. website(October)
Other syndicated loan co-initiatives
etc.

⚫
◼ Business matching through the Mutual Customer Referral
Service (from Oct 2017)- Matching Cases Cooperation(Clients’ challenges)➔ We want to expand our sales
to metropolitan areas
Head Office location
Store location

Total asset balance ofParticipating financial
institutions
participating banks(As of March 31,
banks (FYE2024/3 on consolidated basis)
2024)

10

Sales promotion
Regional
revitalization

Synergies from cooperation
measuresMarketB investment(2015/10 - 2024/3
cumulative total)¥13.2

Administration
efficiency
Promotionof joint efforts

Risk
management¥99 trillion

TSUBASA
Partner Banks

Jyudankai
participants

System➔ Launched withthe participation of all 15 banks

New!

Operational
Cybersecurity
efficiency◼ Sponsorship of Expo 2025 Osaka-Kansai(Japan International Exposition 2025) (April 2024)

Systemstandardization

Information
sharing◼ Participation in TSUBASA-Jyudankai Joint
Study Group (March 2024)- Main topics of joint research -- Key Partnership Areas Daishi Hokuetsu Bank on a nonconsolidated basis

TSUBASA Partner
Banks(Clients’ challenges)➔ We want to expand our
product lineup

Enhancementof humancapital value

etc.

etc.

New!

Cooperate for regional revitalization throughparticipation in the Expo
© Expo 2025

➔ Contribute to the sustainable development of theregion42

Overarching Theme Across Strategies:

Deepening the TSUBASA Alliance“Gunma-Daishi Hokuetsu Alliance”

Launched in
2021/12Financially support
private placement issuers- Key Partnership Areas Regional
revitalization &tourism promotion

Corporate
solutions

Personnel
development

Effective
use of real estate➔ Ten FG employees participate in Gunma
Bank’s community revitalization project in
Minakami, Gunma Prefecture

etc.

Synergies from cooperation measures(2020 /12 - 2024/3 cumulative total)

80
57

Provided food and monetary donations to Niigata
and Gunma prefectures using a portion ofcommissions received from the issuing companies

Regional revitalization &tourism promotion◼ Joint training for regional revitalization(October 2023 - November 2023)

Asset
management

Total of Daishi Hokuetsu Bank and Gunma Bank(¥100M)

Joint planning ofproducts and services◼ SDGs Private Placement Bond
“Green & Food Support Private Placement
Bond-2” (July 2023 - March 2024)

Estimated

131

Cumulative
5-year total

10B exceeded+¥

Joint use of offices◼ Relocation of our Ikebukuro Branch to the
Gunma Bank Ikebukuro Building (January 2024)➔ This will be the 2nd branch initiative following therelocation of the Bank’s Takasaki Branch to Gunma
Bank’s Takasaki Tamachi Branch in March 2023

Personnel development◼ Development of human resources throughmutual acceptance of trainees, etc.

15

▲ Workshop▲ The Gunma Bank
Ikebukuro Building,where our Ikebukuro
Branch is located

Personnel
exchange

2020/12 FY2021

FY2022

FY2023

FY2026➔ Our bank sends two people, one to each of Gunma Bank’s
overseas offices (New York branch and Ho Chi Minh City Office).
Sharing knowhow and skills

43Medium-Term Management Plan III:Key Performance Indicators (KPI)“Financial Challenge” KPI
Growthpotential

Strengthening
profitability

Efficiency

Consolidated
OHR

Consolidated Profit*1(¥100M)

270(%)

Consolidated
ROE
(%)

≥ 10%

≥ 5%
61% level

FY2023

FY2026 Plan

Maintain and improvebusiness health

Consolidated
Capital Ratio

(%)

65.1

212

FY2023

Soundnessof business

Productivity improvement

FY2026 Plan

4.6

FY202310.03%FY2026 Plan

FY2023

FY2026 Plan

*1: Profit attributable to owners of parent[Reference] Indicators for transformation of business portfolios
Interest on businessloans and bills
discounted(After considering foreign currency funding cost)

FY2023252 billion yen
FY2023

Corporate relations
196 billion yen
revenue*2
Group company
revenues*4

FY202336 billion yen

FY2026 Target

278 billion yen
FY2026 Target

200 billion yen

FY2026 Target

45 billion yen

Interest on consumer FY2023
loans and bills
200 billion yen
discounted
Individual relations
revenue*3

FY2023107 billion yen

FY2026 Target

209 billion yen
FY2026 Target

122 billion yen*2: Total corporate wealth management advisory (including securities), equity
solutions and financial planning revenues*3: Personal wealth management advisory revenue (including securities revenue)*4: Total profit for all Group companies excluding banks

44Medium-Term Management Plan III:Key Performance Indicators (KPI)“Environmental and Social Challenge” KPI
efforts to address global
E Activeenvironmental issues

regional economies and society by solving community
S Revitalizing
and customer issues

CO2 emission
reduction rate

Number of business start-ups
and succession support

FY2026 Target(vs. FY2013)

62% level

Executed amounts for
Sustainable Finance
FY2026 Target¥1,100B

FY2026 Target

Number of DX and Productivity
Improvement Support
FY2026 Target(Cumulative total
since FY2021)

G

Strengthen trusted relationships withstakeholders through improved
governance, including ensuring
diversity% of women managers*1
FY2026 Target≥ 27%

Total No. of Groupbusiness clients*2
FY2026 Target

69,000 clients

3,000 cases

95 cases

Ratio of business clients withimproved indicators, etc.
FY2026 Target≥ 75%

Number of cases supported
to develop a business
improvement plan
FY2026 Target

440 cases

Number of digital
customers*3
FY2026 Target

800,000 partners

Balance of Group assets
under custody
FY2026 Target¥1,690B

No. of clients supported insales channel development*4(Regional trading company)

FY2026 Target

930 clients

Number of HR solutions
supported
FY2026 Target

240 cases*1: Increase the ratio of women managers (deputy level and above) (Bank alone)*2: Number of corporate clients with recurring business with FG Group companies (total)*3: Number of Daishi Hokuetsu ID holders (e.g. Little Bank and My Page users) and individual e-net banking users*4: Cumulative total since the opening of the Nihonbashi Branch in October 201945

Medium-Term Management Plan III

Sustainability Initiatives

46

Daishi Hokuetsu FG Sustainability Initiatives
Daishi Hokuetsu FG

1

Basic Sustainability Policy: Key Action Areas
Address
Regional
IssuesKey Initiatives to Date

H1

2

H1

⚫ Endorsement of TCFD Recommendations⚫ Establishment of “Sustainability Promotion Committee”
and “Sustainability Promotion Office”⚫ Initiatives on Ministry of the Environment “FY2021 ESG
Community Finance Promotion Project”

H2

FY2021⚫ Formulation of the “Sustainability
Basic Policy”⚫ Initiatives on the Ministry of theEnvironment “Support Project for
Scenario Analysis Pilot Programon Climate Risks andOpportunities in line with
TCFD Recommendations”

Address
Environmental
Issues3

Build Trustof Society

4

Develop Talented People
and Improve Workplace
Environment⚫ Added “Practicing Sustainability Management” to the Medium-Term Management
Plan II Basic Strategy⚫ Formulation of “Investment & Financing Policies that consider Environment andSociety”⚫ “Sustainable Finance Targets” and “CO2 Emission Reduction Target” established⚫ President appointed to the Board of “SDGs Niigata”⚫ “Declaration on Building Partnerships” announced⚫ Initiatives on Ministry of the Environment “FY2022 ESG Community Finance
Promotion Project”

H2⚫ Introduction of environmentally friendly offices⚫ Introduction of carbon-neutral city gas⚫ Announcement of the “2050 Carbon Neutral
Declaration”

FY2023

FY2022

Sustainability Promotion Committee
Chairperson: FG President

Promotion structure *1

Sustainability Promotion
OfficeRegional Business Promotion
Subcommittee

CO2 Reduction
Subcommittee

FG HQ departments

BCM*2 Subcommittee

Bank HQ departments

Geopolitical Risk
Management Subcommittee

Group companies*1: The Human Capital Value
Enhancement Subcommittee mergedwith Human Capital Value
Enhancement Committee (new)47*2: Business Continuity Management

Daishi Hokuetsu FG Initiatives
Daishi Hokuetsu FG’s own initiatives to achieve sustainability
CO2 emission reduction target and results*1(t-CO2)(vs. FY2013)◼ Adopted for the Ministry of the Environment “FY2023
TCFD Disclosure-based Practical Engagement
Program for Regional Financial Institutions”-54.4%(September 2023 - March 2024)◼ Participation in the “TNFD◼ Participation in the
Forum” (February 2024)“GX League” (May 2023)

FY2030 Target-65％
reduction(Scopes 1&2)

16,797New!

FY2050 Target

Achievecarbonneutrality

7,656

5,878

FY2013

FG’s initiatives to absorb knowledge andexpertise

FY2023(Preliminary figures)

FY2030FY2050*1: Figures have been restated due to the consolidation of Daishi Hokuetsu IT Solutions andBridge Niigata as consolidated subsidiaries of FG.

FG’s efforts to reduce the emission of its
own CO2Introduction ofrenewable-energyderived CO2-freeelectricity

Energyconservation in
branch offices

Solar panel installation
underway➔ Implemented in
3 branch offices
in FY2023◼ Participation in the Tokyo Stock Exchange
Carbon Credit Market (March 2024)

New!

Human capital development and sustainability New!
awareness activities / Bank events

Knowledge
absorption

Bank events◼ Organization of the“S-1 Grand Prix”➔ Sustainability quiz competition activity(Sustainability No. 1 Grand Prix)(October 2023 - February 2024)

Improvementof practicalskillsBank events◼ “SF Championship”*2 ➔ Awards Program recognizes outstanding(Sustainability Future Creation Championship)(October 2023 - February 2024)

customer sustainability proposals*2:“Family Business Support Championship”
also held at the same time

Introductionof EV vehicles

etc.
▲ S-1 Grand Prix48

Addressing Issues faced by Regions
and Customers
Initiatives to promote sustainability and SDGs
Cumulative total of executed amounts for
Sustainable Finance(¥100M)

FY2030 Target
FY2021 -1.5

15,000

trillion yen

Expansion of products and services◼ Expansion of sustainable finance product range⚫ Positive Impact Finance⚫ Sustainability Linked Finance⚫ SDGs-linked Finance
Sustainable Finance⚫ SDGs Support Loan
Extended to
products ⚫ Sustainability Finance⚫ SDGs Green Finance8

Cumulative total (1 trillion yen in theof executed environmental area)
amounts

New!
For
businesses

4,346

2,446
New!
FY2022

FY2023

FY2030Initiatives to address issues faced by local
communities

New!

◼ Participation in the Niigata PPP/PFI
Research Forum (January 2024)➔ Daishi Hokuetsu Bank participates as a secretariat in the Forum, whichbrings together Niigata Prefecture, municipalities, private companies,
financial institutions, and others to study PFI business knowhow,advanced case studies and issues, etc.

New!

(January 2024)
Donation to
Niigata Prefecture
the amount equivalent

to 0.05%of the loan amount901
FY2021⚫ “Biz-Ecology” Regional Decarbonization
Contribution Loan

◼ Participation in the “Niigata City J-Credit
Promotion Council” (March 2024)➔ Participation by Daishi Hokuetsu Bank and Daishi Hokuetsu Research &ConsultingFor
individuals⚫ Housing loan “ZEH Housing Support Plan”(April 2024)

Preferential
fees or interest
rates for ZEH
homes◼ Handling of the theme-based “donationtype private placement bonds”
New!

⚫ “Supporting Community!
SDGs Private Placement Bonds” (June 2024)➔ Contribute to regional development and theachievement of the SDGs through donation-typeprivate placement bonds with various municipalities
and organizations in Niigata Prefecture as donors

49

Addressing Issues faced by Regions andCustomers
Communication with local communities for social contribution◼ Response to the 2024 Noto
Peninsula Earthquake

Donation-type private placement bonds“Noto Peninsula Earthquake
Cumulative
Reconstruction Assistance Privateamount issued
Placement Bonds”
Approx.
¥4.8B(January 2024)➔ Handling of SDGs private placement
bonds, in which a portion of the(January - March 2024)
fees received from issuing
companies will be donated to
Niigata Prefecture and the Japanese
Red Cross Society
Donations to Niigata Prefecture and
the Japanese Red Cross Society forrecovery and reconstruction efforts◼ “Daishi Hokuetsu Academy”
financial education activities(2013-)
Number of children participated(cumulative total)(Period: FYE2014/3 - FYE2024/3)

15,294 people◼ Volunteer activities of“Daishi Hokuetsu Magokoro no Kai” (1993-)(Fundraising organization with voluntary
participation by officers and employees)(January 2024)➔ Donated a total of 60 million yen to
support disaster victims and otherrelief efforts▲ Donation ceremony for
Niigata Prefecture◼ Granting scholarships throughthe “Daishi Hokuto Scholarship
Society” (1962-)
Number of scholarship recipients(cumulative total)(Period: FY1963/3 - FYE2024/3)

1,276 people▲ Scholarship recipients’exchange meeting➔ Participated in volunteer
activities for nature
conservation in Niigata
Prefecture, and madedonations toenvironmental protection
and social welfareorganizations▲ Volunteer activities➔ Donation of goods to Sado
Crested Ibis Conservation
Center since 1968 for the
return of the crested ibis to
the wild▲ Presentation ceremony

50Medium-Term Management Plan III

Governance& Capital Policy

51

Governance Structure supporting Sustainable
GrowthPercentage of Outside Directors in the
Board of Directors

Appointment of women officers% of Outside
Directors

Composition of theBoard of Directors

33.3%

June 2024(Scheduled)Internal: 10

Diversity Initiatives

Internal
Director

OutsideDirector

Outside: 5First female Director to
be appointed (June 2024)◼

- Women in management and (As of the end of March 2024)
executive positions Female Director: 1
Bank
Division

Financial &Management
Regional
theoryadministration Accounting
IT &Systems

FemaleDirector

Law

Corporate
management* Assuming election at the Company’s 6th Annual General Meeting of Shareholders tobe held on June 25, 2024

Stakeholder dialog to increase corporate
value
Corporate briefings
for institutional
investors

Corporate briefings
for individual
investors

Company briefings
for corporateclients

Dialogue withshareholders
and institutional
investors

Company briefings
for retired
employees

etc.

FY2023
Number of stakeholder
dialogues: 50 times
or more in total

New!

(concurrently served by the above FG officer)

Female General Manager: 1
Female Branch Manager: 16(1 of whom also serves as the above FG officer)

Group
Company
Division

Female President andRepresentative Director: 1
Female Executive Officer: 1

Programs for the development of
women for promotion to
management and other positions
Introduction of the“TSUBASA Cross Mentoring Program”
for the development of women
executive candidates(FY2022 - )Promotion to General Manager
and Branch Manager

Women’s Leadership
Development
Program
Women’s Empowerment
Program(FY2021 - )▲ Management training forfemale managers by FG
Chairperson

52

Initiatives to Reduce Cross-shareholdings
Upward revision of strategic shareholding reduction target(May 2024)

Reduction from FY2020 (end of March 2021), when Daishi Hokuetsu Bank was formed by merger
Before changeNew!

After change

10

Reduction ofbillion yen(in carrying amount)

Reduction of

20 billion yen (in carrying amount)by the end of the Medium-Term Management Plan
III (end of March 2027)

by the end of March 2026

Changes in the carrying amount of cross-shareholdings of Daishi Hokuetsu Bank
Medium-Term
Management Plan I

Medium-Term Management Plan II

Reduction results
Revised targets(Cumulative total)
Reduction results
Upward revision from-95
(Single FY)(¥100M)

initial target of -¥10
billion to -¥20 billion

-29

678

Number ofissuesMedium-Term Management Plan
III

666

612

2021/3 end

2022/3 end

2023/3 end

257

246

236

583

2024/3 end

-18

218

.........
.

-200
478

2027/3 end(Target)53

Changes in Shareholder Return Policy and
Dividend Forecast for FYE2025/3
Changes in Shareholder Return Policy (May 2024)
The Daishi Hokuetsu Financial Group Shareholder Return Policy(revised in May 2024)

New!

Considering the public nature of the financial group, our basic policy shall be to continue providing stable returns toshareholders while increasing retained earnings to strengthen our base. Our goal is to continue to meet the expectationsof shareholders in the future.
ChangeSpecifically, while targeting a total shareholder return ratio of 40%, dividends per share will be progressive inprinciple, and the dividend payout ratio is targeted to be around 35% during the period of the Medium-Term
Management Plan III (FY2024-FY2026).
Our policy is to work to improve ROE based on the increase in profit, with the goal of achieving 5% or more as soon as
possible, and then increasing ROE to an even higher level.

FYE2025/3 Dividend Forecast

Dividend increase
forecast

Medium-Term Management Plan I

Shareholder
Return Ratio

42.0

42.5

Medium-Term Management Plan II

50.7
36.1

39.2

(%)

Dividend Payout
Ratio(35.0%)

Dividends
per share(annual amount)(Yen)[Year-end] 60 yen[Interim]
Daishi Bank: 45 yen
Hokuetsu Bank: 30 yen

FYE2019/3 *(42.5%)(50.7%)(36.1%)(30.7%)

120

120

120

120

FYE2020/3

FYE2021/3

FYE2022/3

FYE2023/3* Excluding a gain on bargain purchase

40.3Average
41.2%(30.8%)

Medium-Term
Management Plan III+¥15 yoy

160

145

FYE2024/3

FYE2025/3(Forecast)

54

Initiatives to Improve PBR
Improving PBR through implementation of
the Medium-Term Management Plan III
Ensuring implementation of the Medium-Term Management Plan III

Initiatives to Improve PBR

Increasing profit➔Improving
RORA
Profit

ROE

Strengthening
profitability◼ Strengthening Group
comprehensive capabilities◼ Enhancement of non-interest
income◼ Promotion based on risk andreturnBasicStrategy I

Intensive cost
control◼ Labor productivity
improvement◼ Expense control◼ Credit cost control

Basic
Strategies
II & IV

Risk asset control◼ Optimal risk-weighted asset
allocation◼ Reduction in strategic
shareholdings

Basic
StrategyIV

Capital structure
optimization◼ Controlling capital adequacy
ratio◼ Enhancement of shareholder
returns

Basic
StrategyIV

Strategic
investments for
growth◼ Explore new business areas◼ Execution of strategic
investments

Basic
Strategies
I & II

Promote growth
expectations◼ Contribution to solving
regional issues◼ Enhancement of Human
Capital Value

Basic
Strategies
I & III◼ Enhance IR and information
disclosure◼ Strengthen dialogue withinvestors

Basic
StrategyIV

Risk asset

Return on equity
Earnings per share
Net assets per share

PBR
Price Book
Value Ratio

Maintain andimprove businesshealth➔ Financial leveragemanagement
Risk asset

Equity capital

Stock priceNet assets per
share= ROE × PER

PERPrice-Earnings
Ratio
Stock priceEarnings per share

Strengthen nonfinancial capital
Capital cost
control

55

Initiatives to Improve PBR
Improve PBR by increasing ROE- To enhance shareholder value Medium-Term
Management Plan I

Medium-Term
Management Plan II

Daishi Hokuetsu FG
Average of regional banks*

ROE
Return on
equity(%)(2021/1)
Bank merger
Birth of new
bank

4.6

4.8

3.5

PBR

2.6

Averageofregionalbanks*

0.27

0.27

FY2020

Sales Division

3.2

3.1

FY2023

FY2022

Improvement due todecrease in loss-cut
Market Investment factors for foreign FY2023
bonds
Division

0.5%
Steady improvement
in ROE since thebank merger

Increase loans andnon-interest
incomeBubble size:
Revenue during the period

1.0%

FY2022
0.0%
0
0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

RORA
(Gross profit basis,
net of credit costs)

3.0%

RORA by category

2.5

Price Book
Value Ratio(Times)ROA≥
5.0% 1.5%

4.2

3.3

RORA by division

Medium-Term
Management Plan III(FY2023 results)
ROA
Bubble size:
Revenue during the period
2.5%

0.26

0.23

FY20210.31

0.29

FY2022

0.43

Medium-Term
Management Plan III

2.0%

Further improvementof PBR

1.5%

0.42

FY2023

Promotion ofmarkets outside
the prefecture

Business inthe prefecture

1.0% Businessoutside theprefecture
0.5%
FY2024Plan

In-depth
Unsecured Loan
cultivation of theprefectural
marketHousing Loan

FY2026Plan
0.0%* Average of regional banks: Average of regional banks and the Group listed on
the Tokyo Stock Exchange (estimated by our company)

0

0.0%

1.0%

2.0%

RORA
(Gross profit basis,
net of credit costs)

3.0%

56

Appendix

57

Top-Priority Theme of Medium-Term Management Plan II:

Demonstration of Three Major Synergies
A New Stage of Harvesting Results from

Medium-Term
Management Plan II

Bank Merger and Birth of New Bank

Final Year of
Medium-Term
Management Plan

April 2021

March 2024

Top-priority Themes

Demonstration of Synergy Effects
Maximization ofMerger Synergy

Maximization ofGroup Synergy

Maximization of
TSUBASA
Partnership Synergy

Sharing of knowhow
ConsolidationofSales
force enhancement
Productivity
improvement
overlapping
functions
Reallocation ofmanagement
resources

Maximizing the use
Sales
of force
FG’s enhancementcompany
Productivity improvement
functions

Leveraging thelargesteconomies
of
Sales
force
enhancement
scale of improvement
regional
Productivity
banks

58

Medium-Term Management Plan II:

Performance Indicators
Management Indicators
Strengthening
Consolidated Profit*1
profitability

Growth rate for average balance of
SME loans*2
Average balance of SME loans
Growth rate for average balance ofconsumer loans*2
Growth of theGroup¥21.2B

1.9%

4.2%

1.1%
¥1,963.2B
3.7%¥1,464.6B
9.1%¥28.6B
27.6%
¥3.6B
65.1%
4.6%

10.23%

10.03%¥1,942B
3.3%¥1,412.8B

Growth rate of non-interest income*3

25.7%¥26.2B

Growth rate of Group company
revenue*4-31.5%

Group company revenue¥2.8B

Improvement Consolidated OHRofmanagement
Consolidated ROE
efficiency

Consolidated Capital Ratio

FYE2024/3
Result¥17.7B

Average balance of consumer loans

Non-interest income

Maintain andimprovebusinesshealthFYE2023/3
Result68.5%

Year on Year
¥3.4B
¥21.1B¥51.8B

¥2.4B

¥0.7B
-3.4 pt

0.4pt-0.20 pt

*1: Profit attributable to owners of parent*2: Average annual balance before partial direct write-offs*3: Total amount of profit from other businesses, etc., excluding fees and commissions and other profit, and gains and losses on government bonds (excluding
revenue of Market Investment Division and foreign currency funding costs) (accompanying the change in calculation method, figures are compared with theretroactively changed counts in light of comparison with previous years)*4: Total profit attributable to owners of parent of Group companies, excluding the Bank

59

Medium-Term Management Plan II:

Six Indicators for Deepening Transformation of Portfolios<Bank Division>
Raise the ratio of “interest on loans andbills discounted” and “non-interest
income” in core gross business profits
Six Indicators for Deepening
Transformation of Portfolios<Group Company Division>
Raise the ratio of “Group company
revenue” in consolidated profit

FYE2023/3
ResultFYE2024/3
ResultYear on Year

[1] Ratio of SME loans in total loans

37.3%

36.6%

-0.7 pt[2] Ratio of consumer loans in total loans

27.1%

27.3%

0.2pt

[3] Ratio of unsecured loans in consumer
loans

8.4%

8.6%

0.2pt

[4] Ratio of asset management advisory
revenues to core gross profit

8.9%

9.7%

0.8pt

[5] Ratio of financial solution revenues tocore gross profit

15.5%

18.2%

2.7pt

[6] Consolidated/non-consolidated ratio

1.19 times

1.22 times

FG’s consolidated profit ÷ Bank non-consolidated profit* After deducting a gain on bargain purchase and other special factors resulting from the conversion of Daishi
Hokuetsu IT Solutions into a subsidiary*

0.03 times
60Medium-Term Management Plan II:

Indicators of Contribution to Regions
Indicators of Contribution to Regions
Top-priority target to
No. of companies with Daishi Hokuetsu Bank asmeasure our contribution
their main bankto the region
Maintain and increase
drivers of regional
economy14,734 clients

Vs. FYE2024/3
Target*1-666 clients

No. of startups and secondary startups
involved

1,968 cases

118 cases

No. of clients supporting business succession

1,743 clients

3 clients

No. of borrowers based on feasibility
assessment

7,125 clients

725 clients

Loan balance based on feasibility assessment¥1,600.5B¥0.5B

No. of clients using Guidelines for Management
Support for enhancement Guaranteeof corporate value
No. of clients with improved businessindicators, etc.

2,094 clients

3,926 cases

1,076 cases

531 cases

51 casesNo. of clients supported in sales
channel development (cumulative
total)

638 clients

38 clients

No. of FG collaboration activities tosupport productivity improvement(cumulative total)

296 cases

26 casesNo. of personnel-matching casesthat lead to solutions to corporate
issues (cumulative total)

261 cases

51 casesNo. of cases of support for formulation ofmanagement improvement plan
Activities
through a
regional trading
company

Activities
through a
staffing agency

7,691 clients *2 -1,809 clients
9,794 clients

No. of cases of business support

Providing new value
through expansion ofbusiness domains

FYE2024/3
Result*1: Impact of the decrease in the number of business establishments inthe prefecture and early repayment of zero-zero loans, etc.

*2: The impact of the decline in the number of business clients (*1 ),the COVID-19, price hikes, etc.

61Summary of Financial Results for the Fiscal
Year Ended March 2024 (Profit/Loss)
FG’s
Consolidated

FG’sConsoli(¥100M)dated
1 Ordinary
profit(¥100M)

Financial Results
For Fiscal Year
Ended March
2024

Year on Year

308

58

212

2 Profit*1

34

Forecast(Announced in
May 2023)

275

33

201

11

*1 Profit attributable to owners of parent

Group
Companies

Group(¥100M)(¥100M)
Companie
3 Profit*2s

Financial Results
For Fiscal Year
Ended March
2024

Year on Year

36

Financial Results
For Fiscal Year
Ended March
2023

7

28

*2 Total profit attributable to owners of parent of Group companies,
excluding the bank

<FG Consolidated> Change Factors(¥100M)

177

FY2023/3[FG Consolidated]
ProfitBank Nonconsolidated+12

ConsolidatedGroup
Adjustment, etc.
Companies+14+7

FYE2023/3: ¥0.1B→ Adjustment of profit/loss of noncurrent assets due to sale/revaluationof real estate owned by banks, etc.
(profit/loss adjustment due tomanagement integration), etc.
FY2024/3: ¥1.6B→ A gain on bargain purchase, etc.,
resulting from the conversion of
Daishi Hokuetsu IT Solutions into a
subsidiary

Bank Nonconsolidated

Vs. Forecast

212

FY2024/3[FG Consolidated]
ProfitFinancial Results
Financial Results
For Fiscal YearFor Fiscal Year
Ended March
Year on Year Ended March 2023
2024(¥100M)

4 Gross profit

852

50

802

5

(Core gross profit)

909

-8

917

6

Net interest income

640

- 33

673

7

(Of which, interest on loans and bills discounts)

492

24

468

8

(Of which, interest and dividends on securities)

390

105

284

9

(Of which, financing expenses) (-)

347

226

121

10

Fees and commissions

156

2

154

11

Profit from other businesses

55

80

- 25

112

22

90

- 56

58

- 115

14 Expenses (-)

577

2

575

15 Substantial business profit

274

47

227

16

331

- 11

342

321

25

295

18 Business profit

272

35

237

19 Temporary loss (income)

- 18

-6

- 11

20 Ordinary profit

254

28

225

21 Extraordinary income (losses)

- 26

-5

- 20

22 Profit

160

12

148

23 < Net credit cost (-) >

57

16

41

- 29

55

- 84

32

0

31

12

(Excluding gains (losses) from government bonds and other13(Of which, Gains (losses) from government bonds and other17

bonds)
bonds)

Core business profit(Excluding gains (losses) from cancellation of investment
trust)

24 <Gains or losses on securities>
25 <Management integration expenses (overall) > (-)*
*3

3

Management integration expenses recorded in “Expenses” and“Non-recurrent income and losses”

62Summary of Financial Results for the Fiscal
Year Ended March 2024 (Profit/Loss)<Bank Non-consolidated> Change Factors
Gains (losses) from government bonds, etc.: +58
Gains (losses) on stocks: -3(¥100M)

Interest and dividends on securities: +105
(Gains or losses from cancellation of
investment trust: -36)
Interest anddividends on
securities

Bond derivative: +32

Financial solutions: +23
Wealth management advice: +6
Other: -6
Non-interest
income148

Interest on (Sales Division)loans and bills+24
discounted+24(Year on Year)
Balance factor: +14
Yield factor: +10(vs. Plan)
Balance factor: +4
Yield factor: +0

FYE2023/3
Bank’s nonconsolidated profit

Gains orlosses on
securities+55

Foreign currency
funding
cost, etc.
(-)

+195

• Foreign currency funding cost, etc. (-): +180
Market Investment +169; Sales +10• Decrease in interest on deposits with banks: -10+105

Non-interest
income(MarketInvestment
Division)+32

Personnel expenses: -2
Non-personnel expenses: +2
Taxes: +2

Impairment loss on non-current assets (-): -14
Gain (loss) on sale of non-current assets: -9
Allowance for asset retirement costs (-): +8
Retirement benefit expenses (-): +1

Expenses Net credit cost Extraordinary(-)
income(-)
Taxes, etc.
(losses)
+2
+16
(-)

-5

Total of Market Investment Division: +21

+10

160
+¥1.2Byoy

Total of Sales Division: +34

FYE2024/3
Bank’s nonconsolidated profit
63Earnings Forecast for Fiscal Year Ending
March 2025⚫

The FG consolidated profit is expected to increase 1.7 billion yen (+8.4%) year on year to 23 billion yen⚫

Under the new “Medium-Term Management Plan III,” we will work on “Deepening and Exploring GroupManagement” and strengthen the top line by integrating the Group’s financial and information intermediaryfunctions, network, and expertise, and by strengthening the Group’s consulting function with the community andcustomers as the starting point.

⚫

This plan does not take into account the effects of the Bank of Japan’s monetary policy changes. We intend torevise the plan as necessary, keeping an eye on future monetary policy and market conditions(¥100M
FG’s Consolidated)(¥100M)

Earnings Forecast for
Fiscal Year Ending
Year on Year

March 2025

1 Ordinary profit

332

23

2 Profit*1

230

17

*1

(¥100M)

3 Core gross profit

Interest
ForeignandNetcurrency
dividends
Gains or credit
fundingonlosses on cost
cost
Nonsecurities(-)
securities(-) interest
-9
-7
+79
+24 income

Earnings Forecast for
Fiscal Year Ending
Year on Year

March 2025

859

- 49

636

-3

222

- 46

6 Expenses

607

30

7 Core business profit

251

- 79

8 Ordinary profit

272

17

9 Profit

190

29

50

-7

5

(Year on Year)
Balance factor: +11
Yield factor: +1

Profit attributable to owners of parent
Bank Non-consolidated

4<FG Consolidated> Change Factors (¥100M)

Net interest income
Net fees and commissions income and profits fromother businesses, etc., excluding gains (losses)
from government bonds and other bonds

10 <Net credit cost>
11 <Gains or losses on securities>

49

79

12 <Management integration expenses>

26-5

NonInterest on interest
incomeloans and
(Salesbills
Division)
discounted

212 +12(Market Div.)-32

Consolidated
Expenses
Adjustment,
Group
(-)
etc.
Others Companies

+30

+9

+17

+2

-14

230

Bank, non-consolidated:+29

FYE2024/3[FG Consolidated]
ProfitFYE2025/3 Plan
[FG Consolidated]
Profit64

FYE2025/3 Earnings Forecast:

Key Performance Indicators (KPI)“Financial Challenge” KPI
Consolidated Profit*1
Consolidated OHR

FY2024 Target¥23B

FY2024 Target

64% level
FY2024 Target

Consolidated ROE

4.8%

Consolidated Capital
Ratio

FY2024 Target≥ 10%[Reference] Indicators for transformation of business portfolios
FY2024 Target
Interest on businessloans and bills discounted
B(After considering foreign currency funding cost)¥26.1

Corporate relations
revenue*2

FY2024 Target

Group company
revenues*4

FY2024 Target¥20.7B¥3.8B“Environmental and Social Challenge” KPI
CO2 emission
reduction rate
FY2024 Target(vs. FY2013)

59% level

Executed amounts for
Sustainable Finance
FY2024 Target¥65.0B(Cumulative total
since FY2021)% of women managers*1
FY2024 Target≥ 26%

Total No. of Group businessclients*2
FY2024 Target

62,700 clients

Number of business startups and succession support
FY2024 Target

2,850 cases

Number of DX and Productivity
Improvement Support
FY2024 Target

75 cases

Ratio of business clients withimproved indicators, etc.
FY2024 Target≥ 75

FY2024 Target

420 cases%
Number of cases supported todevelop a business
improvement planInterest on consumer
loans and bills
discounted
Individual relations
revenue*3

FY2024 Target¥20.2BFY2024 Target¥11.2B*1:Profit attributable to owners of parent*2:Total corporate wealth management advisory(including securities), equity solutions and financial
planning revenues*3:Personal wealth management advisory revenue(including securities revenue)*4:Total profit for all Group companies excluding banks

Number of digital
customers*3
FY2024 Target

450,000 clients

Balance of Group assets
under custody*1: Increase the ratio of womenmanagers (deputy level and
FY2024 Target
B
above) (Bank alone)*2:
Number of corporate clients
No. of clients supported inwith recurring business with*4
sales channel development
FG Group companies (total)(Regional trading company)*3: Number of Daishi Hokuetsu ID
holders (e.g. Little Bank and
FY2024 Target
My Page users) and individual
clients
e-net banking users*4: Cumulative total since the
Number of HR solutions
opening of the Nihonbashi
supported
branch in October 2019¥147.9720

FY2024 Target

190 cases

65

Bank
Division

Loans and Bills Discounted

Composition of overall Loans and bills discounted(FYE2024/3)

Fixed interest rate
≤ 1 year

6.6%

Fixed interest rate
> 1 year ≤ 3 years

Status of initiatives on real interest-free andunsecured loans (zero-zero loans) (FYE2024/3)
Repayment startingfrom FY2025
Repayment starting
6.5%
in FY2024

10.9%

10.3%
Marketfloating rate

Repayment
startedFixed interest rate
> 3 years ≤ 5 years

18.5%

82.6%

10.4%
Short-term
prime-ratelinked type

34.3%

Fixed
interest rate
> 5 years

20.0%

Note: Excluding overdue loans

Note: Based on thenumber of claims

Balance and delinquency ratioof real interest-free and unsecured loans
Type of claims

Number ofclaims

Ratio

Outstanding
loans(¥100M)
Ratio

All

5,226

-

710

-

Normalclaims

5,132

98.2%

703

99.0%

94

1.8%

6

1.0%

Delinquent
loans

66

Changes in Interest on Discounted
Loans and Bills and Yield

Bank
Division

Average balance of Loans
and Bills Discounted
Business

ConsumerInterest on business loans
and bills discounted and yield* Before partial direct
write-offs

Public Money and FinanceInterest(¥100M)

Yield(¥100M)+1,536(+2.9%)
49,871
9,145

50,457
9,541

52,114
9,426

53,6508,663

14,646
13,326

13,66454,8797,814

15,062300

27,253

(%)

0.90

0.89

0.89

0.90

0.89

248

244

256

275

287

FYE2021/3

FYE2022/3

FYE2023/3

FYE2024/3

FYE2025/3
Plan

1

200

100

14,1280Interest on consumer loans
and bills discounted & yield
27,400* Before non-accrued
interest

28,56030,341

32,002(¥100M)
1.42

1.40

Interest
1.37

0* Before non-accrued
interest

Yield
1.36

(%)
1.34

200
1
FYE2021/3

FYE2022/3

FYE2023/3

FYE2024/3

FYE2025/3 Plan

100
Yield on loans
and bills
discounted 0.93%(Execution
basis)

0.91%

0.91%

0.01pt

0.92%

189

191

194

200

202

FYE2021/3

FYE2022/3

FYE2023/3

FYE2024/3

FYE2025/3
Plan

0.93%
0

0

67

Bank
Division

Balance of Deposits, etc., and Assets
in CustodyEnding balance of deposits, etc. (including
negotiable certificates of deposit)(¥100M)

Individuals

Corporate

82,23476,5806,112

Other (public funds, etc.)

84,785+1,298+1.5%
87,45986,161

6,854

7,009

Ending balance of assets in custody(¥100M)

Insurance*

7,160

6,155
22,644

22,83323,127933

20,074
1,604

50,351FYE2020/3[Reference]
Averagebalance

74,77753,60955,28656,317FYE2021/3

FYE2022/3

FYE2023/3

79,67982,749

8,155
863

1,788

8,536

8,624

783

716

1,835

1,757

9,679
690
1,944

7,043

57,171FYE2024/3

+996
+1.1%
84,77785,773Public bonds+1,054+12.2%

7,750
22,512

Investment trust[Reference]
End-Balance of
Deposits, etc.,
and Assets in
Custody

5,212

5,503

FYE2020/3

FYE2021/3

84,33090,390

5,917

6,150

FYE2022/3

FYE2023/3

93,322+2,352+2.4%
94,786
97,139FYE2024/3* The insurance balance is presented in comparison with the retroactively restatedfigures for the purpose of comparison with prior periods, as the calculation
method was standardized following the merger of the subsidiary banks.

68

Bank
Division

Non-Interest Income/Expenses
Expenses

Non-interest income*(¥100M)(¥100M)
Asset management advice

Financial Solutions

+24
+9.1%
262

286

Others

Personnel expenses

299

659

30

45

32

38

184

292

39

163

+2
+0.4%

600
32

208

Non-personnel expenses

252

575

577

33

35

237

240

Taxes

607
37

264

165

48

141
101

61

75

68

FYE2021/3

FYE2022/3

81

88

FYE2023/3

FYE2024/3

321

314

303

300

305

FYE2021/3

FYE2022/3

FYE2023/3

FYE2024/3

FYE2025/3 Plan

105

FYE2025/3 Plan

* Total amount of profit from other businesses, etc., excluding fees and commissions and other profit, and gains and losses on government bonds(excluding foreign currency funding costs and Market Investment revenue)

69

Bank
Division

Securities
Sector * Excluding trading securities※商品有価証券を除く

End-Balance of Securities
Domestic bonds
Stocks(¥100M)

Interest and dividends on securities
Domestic bonds
StocksForeign securities
Other securities

32,764+1,946+6.8% 30,542(¥100M)+105+37.1%

74

5,821
24,930
4,042

4,522
1,432

284

2,024
2,046

6,594

FYE2022/3
Yield

FYE2023/3

173

7,122

44

17,753

FYE2025/3
Plan

1.09%

1.39%

1.19%

5.82 years

5.67 years

4.63 years

4.60 years

5.11 years

2.94 years

2.86 years

2.20 years

0.70%[Yen bonds]

Duration [Foreign bonds]

+788

45
43

42

182

* Duration is calculated after taking into account interest
rate swap hedges

37

230

249

- 78
- 141
- 21

101

496

48

42

43

FYE2022/3

FYE2023/3

FYE2024/3

FYE2025/3
Plan

+57

+10

Vs. Plan+10* The figures compared with the plan are after taking into
account foreign currency financing and other costs; andFYE2024/3 includes ¥1.0 billion of gains on theliquidation of mutual funds in other securities

1,077
Other
securities 0

- 155
- 326

45

577

-210

45

15,551FYE2024/3

Domestic bonds

423

38
16,046

Foreign securities

96

4,080

15,484

Stocks

381

7,186
1,323

Other securities(¥100M)
390

5,801

28,595

Foreign securities
Other securities

Valuation gains or losses

- 274
- 225

- 224

FYE2022/3

FYE2023/3

FYE2024/3¥+577 billion, an increase of ¥788 billion
from the end of the previous fiscal year,
mainly due to higher domestic stock prices* Valuation gains/losses on domestic
bonds and foreign securities areafter taking into account deferredhedging by interest rate swaps

70

Bank
Division

Securities
Sector * Excluding trading securities※商品有価証券を除く
Breakdown of changes in endbalance of Securities

Trends in end-balance ofSecurities(vs. March 31, 2023)(¥100M)(¥100M)
FYE2022/3
Government bonds

5,536

FYE2023/3
6,030

Domestic bonds (yield: 0.27%)

FYE2024/3
5,626

Purchase

4,024

Sale

-3,066

Other-1,453(redemption, market value factors, etc.)

Local government
bonds

7,247

7,682

8,065

Public corporate bonds

713

654

578

Financial bonds

27

20

0

-494

Stocks (yield: 4.77%)

614

Purchase

207

Sale

-173

Other

580

(depreciation, market value factors, etc.)

Foreign securities (yield: 3.15%)

527

Business bonds

1,958

1,658

1,281

Purchase

1,818

Stocks

1,323

1,432

2,046

Sale

-2,083Foreign securities

4,080

6,594

7,122

Other

Other securities

4,042

4,522

5,821

Total

24,93028,59530,542(redemption, market value factors, etc.)

Other securities (yield: 1.66%)

793
1,299

Purchase

5,075

Sale

-3,984

Other(redemption, market value factors, etc.)

208
71

Bank
Division

Non-Performing Loan Ratio& Net Credit Cost

Non-performing loan ratio and amount(%)

Distressed Receivables

Doubtful Claims

Substandard Claims

Non-performing loan ratio

1.79(¥100M)

2.20

2.32

Net credit cost
Provision of general allowance

Disposal of non-performing

for loan losses
Reversal of allowanceloans
Reversal of provision

for loan losses (-)
Recoveries of written

for contingent loss (-)

38

1,165
39

1,261
47

Net credit cost

off receivables (-)

2.22

69

41

57

(¥100M)
1,238
50

917
41
71
1,071

1,150

1,112

810

0

64

54

63

75

FYE2021/3

FYE2022/3

FYE2023/3

FYE2024/3

55

36
11
-9

2
-4

FYE2021/3

FYE2022/3-10-4

FYE2023/3

62

2
-7

FY2024/3

72

Bank
Division

Allocation
Capital Capital
Allocation(¥100M)

Allocated capitalamount

Allocated capital
Credit risk (loans and bills discounted)
Market risk
Cross-shareholding risk
Operational risk
Stress-event capital(Capital held assuming a sudden change
in the environment)

Risk buffer (unallocated capital)
Allocation resources, net ofallowance for doubtful accounts

FYE2024/3

FYE2025/3 H1(plan)

Risk amount(Actual)

Allocated capitalamountUtilization

3,071

1,043

34.0%

3,443

430

263

61.2%

430

2,150

625

29.1%

2,150

40

27

67.5%

45

130

127

97.7%

130

321

0

0.0%

688

551

0

0.0%

210

3,622

-

-

3,653

Risk calculation method⚫ Market Risk, Credit Risk, Cross-shareholding Risk
 Confidence interval: 99% for all Holding period:
1 year for loans,
6 months for non-loans

 For cross-holdings,
risk amount= (VaR - valuation gains/losses) ≥ 0⚫ Operational risk
 Gross profit distribution method73

Capital Ratio
FG’s Consolidated

Daishi Hokuetsu Bank

Consolidated

Consolidated(%)

Non-consolidated

(%)

10.35

FYE2021/3

10.51

FYE2022/3

10.23

FYE2023/3

10.03

FYE2024/3

9.77

9.52

FYE2022/3

9.35

9.15

FYE2023/3

9.20

8.98

FYE2024/3

74

Training
Programfor Enhancement
Financial
Positionof GroupBank
Divisionof Human Capital Value
Companies-2In-house training, Trainee Program/Project, External dispatch
Target tier

Motivation
Membership

Entry-level banker(Beginner)

Middle-level banker(Mid-level)

Orientation for new bankers

New/Mid-career

Executive banker (Supervisor)(Executive)

Executive banker (Manager)(Professional, etc.)

Major Reskilling
Programs
Sustainability Conference

Junior employees
New/Deputy VP

Development of executive candidates

Online course(Business Breakthrough)Development of women executive
candidates

R

Management
Human skills

Senior level

Branch manager/management

Keio Business School, etc.
Mid-career design

Career design

R

Middle career

Women's Empowerment Program

FP Grade 1

R

Career design

Small and Medium Enterprises
Management Consultant

DE&I, unconscious bias

Diversity
Communication andproblem-solving skills

Project 2030

Group comprehensive
capabilities

Group company trainee
Securities, staffing, trading companies, credit card,IT, etc.

Securities Analyst
External courses for IT passport
holders
IT Coordinator

Technical skills(Implementing the banking business)

Human Capital Value Enhancement Project

R

Corporate sales basics

R

Corporate owner (Beginner)

Corporate owners (Middle level)

Corporate consulting leader

Derivative

Corporate consulting

R

Corporate Master Plan

(External) Dispatch to mega-banks, securities companies, and other companies(External) External training by Regional Banks Association of

Sustainability

R
Personal consultingetc.

Corporate marketing (Feasibility assessment, sustainability)

External relations starter

Attendance scale ≥ 100

Business insurance master

Asset management advice< Number of participants per
training program >* The individual training
programs in the chart arecolor-coded according to thefollowing participation scale
Attendance scale:All employees(External) Courses by Regional Banks Association of Japan,

Attendance scale ≥ 10

Pension, inheritance and long-

Screening
Administration/operations
Risk management
ComplianceR

Support for business

Loan beginner

R
Various administration basics

Attendance scale < 10
R Credit Dept. trainee (long-term)

Credit Dept. trainee (short-term)

Improvement of administration

Manager position
Audit Dept. trainee

Branch Manager Training

Compliance at Dept./BranchR

Menu designed for reskillingboth men and womenR

Menu designed primarily
for reskilling women(External) External dispatch75

Financial Position of Group Companies-1
Bank

Leasing

Securities

Daishi
Hokuetsu
Securities

Daishi
Hokuetsu
Bank

Daishi Hokuetsu Lease
FG 100%subsidiary

FG 100%subsidiary

FG 100%subsidiary

Hokuetsu Lease

Fund
ManagementBanksubsidiary

Card

Daishi Hokuetsu
Capital Partners

Daishi JCB Card
Daishi DC Card
Hokuetsu Card

FG 100%subsidiary

FG 100%subsidiary
Consulting andresearchCreditguarantee

Financial area

Daishi Guaranty
Hokuetsu Credit
Guarantee

Daishi Hokuetsu
Research& Consulting

Non-financial area
Staffing

Bank subsidiary

SystemRegional trading
company

Daishi Hokuetsu
IT Solutions

BridgeNiigata

FG 100%subsidiary

FG consolidated
subsidiary

FG 100%subsidiary

Daishi Hokuetsu
Career Bridge
FG 100%subsidiary76

Financial Position of Group Companies-2
Securities

Balance of assets undercustody(¥100M)

4,852

4,106

Securities Number of customers subscribing
to investment trusts(Client)

7,103(¥100M)

669

599

FYE2023/3+70+1,512(+18%)(+11%)(+27%)

FYE2024/3

Profit attributable to owners ofparentProfit from System(Millions of yen)

118

FYE2023/3

Card

FYE2024/3

Accumulated number offranchisees acquired(Franchisees) *FY2021 to date

2,234

FYE2024/3

Consulting fees from Daishi
Hokuetsu Research &Consulting
Consulting(Millions of yen)

151
+27

(+22%)+590+79(+35%)(+204%)

FYE2023/3

FYE2023/3

124

1,644
38

Balance of leased assets

5,591

+746

SystemLeasing

FYE2024/3

FYE2023/3

FYE2024/3

FYE2023/3

FYE2024/3
77

Financial Position of Group
Financial
Position of Group Companies-3
Companies-2(Millions of yen)Company

Core Business

Daishi Hokuetsu Bank, Ltd. Banking business
Daishi Hokuetsu Securities
Co., Ltd.
Daishi Hokuetsu Leasing
Co., Ltd.

Net sales (ordinary revenue)

Ordinary profit

ProfitSharecapitalFYE2022/3

FYE2024/3

FYE2022/3

FYE2023/3

FYE2024/3

FYE2022/3

FYE2023/3

FYE2024/3

32,776

107,585 122,639 149,027

18,26722,56825,417

12,143

14,847

16,062FYE2023/3

Securities business

600

5,665

4,183

5,219

2,811

1,268

2,039

1,959

670

1,157

Leasing business

100

16,26816,604

17,771

497

118

709

329

96

469

Hokuetsu Leasing Co., Ltd. Leasing business

100

4,721

3,896

2,956

262

248

213

175

164

163

Daishi JCB Card Co., Ltd.

Credit card and credit guarantee
services

30

1,669

1,579

1,648

592

454

532

393

300

349

Daishi DC Card Co., Ltd.

Credit card services

30

827

876

920

87

46

68

57

31

43

Hokuetsu Card Co., Ltd.

Credit card and credit guarantee
services

20

772

732

670

155

162

48

103

107

31

Daishi Hokuetsu IT
Solutions Co., Ltd.

System-related operations

100

2,882

3,177

3,260

161

240

188

101

152

109

Daishi Hokuetsu Research& Consulting Co., Ltd.

Consulting business andresearch/study, information
provision services related toeconomy and society

30

205

389

416

30

25

53

19

16

34

Daishi Hokuetsu CapitalPartners Co., Ltd.

Fund creation and management

20

96

35

55

11

4

15

8

3

10

Daishi Hokuetsu Career
Bridge Co., Ltd.

Staffing agency and consulting
business related to corporate
human resources

30

154

199

239

74

67

62

60

51

43

Bridge Niigata, Ltd.

Sales channel development,
tourism promotion, productivity
improvement

70

231

248

292

38

10

15

26

8

10

Daishi Guaranty Co., Ltd.

Credit guarantee business

50

1,730

1,843

1,906

1,122

1,538

1,203

738

1,011

791

Hokuetsu Credit Guarantee
Credit guarantee businessCo., Ltd.

210

962

655

594

893

588

533

689

421

384

April 2023: Daishi Hokuetsu IT Solutions Co., Ltd. became a 100% FG subsidiary and Bridge Niigata Co., Ltd. became a consolidated FG subsidiary
October 2023: The Daishi Computer Service Co., Ltd. was integrated into the Daishi Hokuetsu Bank, Ltd.

78

Contact for Inquiries
Daishi Hokuetsu Financial Group
Corporate Planning Dept.
TEL 025-224-7111
E-mail g113001@dhbk.co.jp

This document contains forward-looking statements. Such statements are not guarantees of future performance andinvolve risks and uncertainties. Please note that future results may differ from our targets due to changes in the businessenvironment and other factors.