June 5, 2023 Our challenges build our future. Chugin Financial Group, Inc.
1. FY2022 earnings results and FY2023 plan
▷  FY2022 earnings results: Profit attributable to owners of parent was 20.4 billion yen (plus 2.1 billion yen as compared with the previous fiscal year). We achieved the plan that has been announced and an increase in the profit for the third consecutive year even under the unstable environment. ▷  FY2023 plan: Profit attributable to owners of parent is expected to be 15.0 billion yen. We will actively make strategic investments for the future, while paying attention to the persistently high overseas interest rates and other factors. 2. New Medium-term Management Plan - Plan for Creating the Future Together: Stage III – (from April 2023 to March 2027) ▷ Our goal: “An organization capable of continuing to create new value for the region” ▷ Three growth strategies: (i) “Deepening” of regional revitalization SDGs (ii) Creation of innovations (iii) Strengthening of the Group business base Profit attributable to owners of parent of 30.0 billion yen (The growth driver will be accumulation of high-quality assets through Group wide efforts) > KPI We aim for ROE of at least 5%, and over the medium to long term, the level exceeding the capital costs. (Enhancement of corporate value through improvement of ROE) 2 I. Earnings Results for FY2022 and Forecasts for FY2023 Summary 5 Solution-related Revenues – Consolidated for the FG – 8 Revenues Related to Assets in Custody – Consolidated for the FG – 9
Major Accounts (Non-consolidated for the Bank)
(Deposits & Assets in Custody, Loans, and Securities)
Looking Back over the Previous Medium-term Management Plan 24 Positioning of the New Medium-term Management Plan 25
26 27 28 30 32 35 44 46 52 54 57 59 For inquiries regarding this document, please contact: Management Planning Department, Chugin Financial Group, Inc. (Shimizu or Matsuo) TEL: +81-86-234-6519 Email: souki01@chugin.jp KPI Income Plan
2. Creation of Innovations •DX and Alliances 3. Strengthening of the Group Business Base • Improvement of Corporate Value and Capital Policy • Human Capital Investments and Diversity and Inclusion • Organizational Culture Reforms Three Growth Strategies 3 Section I Earnings Results for FY2022 and Forecasts for FY2023
Consolidated financial
*Forecast published on Nov. 11, 2022 • Net interest income and net fee income from our core businesses remained strong through our Group-wide sales activities. • In securities investments, portfolios were replaced ahead of schedule in response to rising interest rates in Japan and overseas countries. 5
Core business
net profit
•  As for net interest income, interest on loans and securities steadily increased. *We recorded gains on cancellation of investment trusts of 3.5 billion yen to improve our securities portfolios •  Net fee income and derivatives income (net other operating profits) mainly from corporations significantly increased due to our efforts to strengthen consulting sales activities. •  We controlled overall expenses while expanding investments in employees and various measures. As a result of the foregoing, core business net profit increased by 7.1 billion yen as compared with the previous fiscal year. (Excluding gains on cancellation of investment trusts, an increase of 3.6 billion yen as compared with the previous fiscal year)
Credit cost
•  Credit costs remained low through our efforts such as active financial aids and provision of support for customers in their business improvement. Profits and losses related to securities •  We improved our portfolios mainly of foreign currency bonds. (The duration of foreign currency bonds was shortened from 4.2 years to 1.8 years.)
excluding gains on sale of shares among Group companies associated with the transition to the holding company system. 7
•  Our consulting proposals for management issues have resulted in an increase in fees on syndicated loans and intermediary fees (M&A, business matching, etc.) In addition, revenues from derivatives also increased significantly as we have identified needs of business partners by capturing exchange rate fluctuations. •  Solution-related revenues of the Group as a whole, including newly established companies, increased 2,183 million yen as compared with the previous fiscal year. 8
[Breakdown of revenues related to assets in custody] (million yen) *1: A total of operating revenues for Securities and Asset Management (after deducting internal transactions) *2: Including money trusts, etc. •Revenues from investment funds and financial instrument intermediaries declined due to unstable market conditions, but life insurance revenues increased significantly, driven by rising interest rates. Inheritance-related revenues, on which we are focusing, also increased steadily due to such factors as the identification of asset succession needs of customers. • Including Group companies, revenues related to assets in custody of the Group as a whole decreased 307 million yen as compared with the previous fiscal year due to a decline in revenues from investment trusts. 9
[Factors behind change in net interest income] ■ Yen based: 56.8 billion yen (+¥5.3 billion YoY) • Interest on loans and discounts: +¥0.4 billion YoY • Interest on securities: +¥4.9 billion YoY -¥0.1 billion YoY • Yen, other: ■ Foreign currency-based: ¥8.7 billion (-¥1.3 billion YoY) • Interest on loans and discounts: +¥14.7 billion YoY • Interest on securities: • Foreign fund procurement cost: +¥5.2 billion YoY +¥23.1 billion YoY • Yen net interest income: Loans increased 0.4 billion yen as compared with the previous fiscal year, reflecting the robust increase in the average balance. Securities increased 4.9 billion yen as compared with the previous fiscal year due in part to the gain on cancellation of investment trusts (3.5 billion yen) and an increase in the bond yield. • Foreign currency net interest income: The income decreased 1.3 billion yen as compared with the previous fiscal year due to a rise in the procurement costs following the surge in overseas interest rates. [Loan yield] 10
*: Four products in custody (investment trusts, insurance, municipal bonds, financial instrument brokerage) + inheritance-related business • Investment banking business increased 651 million yen as compared with the previous fiscal year due to various consulting sales activities such as syndicated loans, M&A, and business matching. • Revenues in “Other” increased 884 million yen as compared with the previous fiscal year, contributed by an increase in the housing loan handling fees and other factors. 11 Chugin Financial Group, Inc.
[Expenses] *Impact of the transformation to the FG A decrease of 0.5 billion yen in expenses for personnel who also • In FY2022, total expenses decreased 0.6 billion yen as compared with the previous fiscal year due to decreases in deposit insurance premiums and system expenses, although there were an increase in the amount of bonuses and expenditures related to human capital investment (payment of allowances for purposes such as re-skilling) and innovation-related strategies. 12

[Credit costs]
[Non-performing loans (NPL) (Loans disclosed
under the Financial Revitalization Act)]
(billion yen) ■ Calculation method of general allowance for loan losses • The expected loss rate is calculated based on the actual loan loss rates for three consecutive calculation periods, with one period being three years. (Each calculation period is moved a half year forward.) • The expected loss rate shall be either the "most recent three-period average" or the "most recent five-period average," or the "long-term average starting from the fiscal year ended September 2008," whichever is larger (changed from the fiscal year ended September 2022). • Loans to healthy accounts and substandard I accounts are adjusted by taking into consideration the average remaining period of the receivables. • Credit cost remained low at 5.0 billion yen (a decrease of 2.6 billion yen as compared with the previous fiscal year). • The NPL ratio remained low (1% level). (billion yen) 13
• Yen investments: We will seek to expand margins stably during the period of rising interest rates based on the abundant deposits. • Foreign currency investments: We will continue to improve the foreign bond portfolio, which we have already started to do in order to reduce risk and secure medium- to long-term earnings. Y Fixed rate bonds with asset swap are calculated as Yen Foreign currency floating rate bonds (for both yen and foreign currencies). investments

Status of yen bonds
•  As for yen bonds, attention needs to be paid to an impact on capital
investments composition
(by asset)
• Fixed interest
10BPV BPV: Change in the present value when interest rate rises by 1 basis point (0.01%).へForeign bond yields Interest rate composition of foreign currency assets as a whole 13% Fixed 14 Improvement of the foreign bond portfolio (FY2022)
• Offset with gains on sale of shares, investment trusts, etc. and an increase in net sales. Some bonds were replaced with higher- yield bonds to improve foreign bond vields. To create a portfolio capable of securing revenues over the medium to long term Mar. 31,   Sep. 30,   Mar. 31, (billion yen)
• Short-term prime rates, etc.: Loans • Spread:
About 25% *Market-linked • Swap: About 24% *Market-fixed % Personal loans • Floating: About 13% • Fixed: About 13% Other: About 14% Avg. balance for Avg. balance for FY2022
loans and spread loans. • The margin is expanding stably based on the abundant liquid deposits with high retention. Reference: Status of deposits (including NCD) Deposits + NCD: 8.1 trillion yen Floating interest rates: 98% (Immaterial) FY2021 rates: 2% Fixed interest 63 rates: 10% Business-related market interest rates, especially Loans 70 • Floating interest Asset rates: 90% interest rate
[Capital adequacy ratio] (%) End of Mar. 2021   End of Mar. 2022   End of Mar. 2023 [Status of capital adequacy (Consolidated for the FG)]
• Total capital adequacy declined due in part to a decrease in valuation difference on available-for-sale securities. • Risk assets increased due to an increase in loans to local businesses, personal loans, etc., resulting in a decline in the total capital adequacy ratio. 15
Chugin Financial Group, Inc. [Return policy in FY2023] The shareholder return ratio of at least 40% (on a consolidated basis) through dividends and share buybacks —Enhancement of shareholder returns by stable and continuous increase in dividends and flexible share buybacks— Shareholder return ratio 36.2% *On a non-consolidated basis up to FY2019 On a Chugoku Bank-consolidated basis since FY2020 On a Chugin Financial Group-consolidated basis since FY2022 38.2% 36.9% 38.9% 41.6% 40% or more 28 yen 30 yen (+2 yen) 30 yen o Dividend per share Total amount of returns Share buybacks *Share buybacks are those carried out within a year from the general meeting of shareholders. Total dividends • The shareholder return ratio for FY2022 was 41.6% through dividends and share buybacks. (Out of the share buybacks of 3.0 billion yen, the share buybacks of 2.0 billion yen will be carried out starting from July 2023). • The targeted shareholder return ratio will be raised from at least 35% to at least 40% in FY2023. By so doing, we aim to enhance shareholder return further. 16

Initiatives toward reducing cross-held shares
▷ The relevant shares are held only when it is considered as necessary for continuous growth and corporate value improvement of the issuers of the shares and the Chugin Group. ▷ From the perspectives of capital efficiency and the reduction of shareholding risks, we will reduce the shares through communication with the issuers. The Board of Directors will examine the status on a regular basis. [Judging whether or not the shares should be held] • Profitability, taking cost of capital into account • Relationship with local economy • Viewpoint on managerial strategy [Shares not satisfying the shareholding criteria] • Negotiate improvement of transaction profitability • Negotiate reduction of the number of shares held Outstanding cross-held shares : Market value (billion yen) ■ Book value (billion yen) 17

Profit attributable to owners of parent
(billion yen) FY2026 Medium-term Management Plan final year KPI
Major factors for profit
decrease in FY2023
<Net interest income> • An increase in the procurement costs assuming that overseas interest rates remain high and the absence of gains on cancellation of investment trusts of 3.5 billion yen recorded in the previous fiscal year (FY2022) <Expenses and credit costs> • Investments in innovation-related strategies and investments in measures related to the fields of personal loans and assets in custody • Recording of general allowance for loan losses associated with the enhanced loans (factors for the balances) • Although profit is expected to decrease in FY2023, we aim to achieve the profit targets set forth in the Medium- term Management Plan and the Long-term Management Plan (FY2017 through FY2026) through growth investments including investments in new businesses, as well as the realization of further synergies across the entire Group, including newly established companies. 30.0 18 Major Accounts (Non-consolidated for the Bank)
19

average balance that takes into account cancellations. Investment trusts are based on the average balance of net assets (including defined contribution pensions). • Deposits + NCD have been increasing for both retail and corporate clients, while the trends in securing of on-hand liquidity, spending restraints, etc. caused by the COVID-19 pandemic have been subsiding. • We will aim to increase the total assets in custody by continuing to expand stable deposit pipelines and meeting asset management needs of customers. 20
*1 Local: Regions other than Tokyo and Osaka  *2 Urban: Tokyo and Osaka  *3 Loans to the headquarters: Non-Japanese loans and SF centers • The annual rate for local development loans is 1.9%, due in part to strengthened sales activities aimed at expansion of share and higher demand for funds caused by surging raw material costs for some businesses. Personal loans continued to grow steadily mainly for housing loans. The balance of loans to the headquarters increased while reducing risks, in response to an increase in deposits and other reasons. Total loans increased 4.3% as compared with the previous fiscal year. [Average loan balance] 21
[Average balance of securities]
currency investment trusts • The balance decreased 71.3 billion yen as compared with the previous fiscal year due to efforts to sell off lower-yield assets to improve the portfolio of foreign currency bonds. (The duration of foreign currency bonds was shortened significantly from 4.2 years to 1.8 years.) • It is our policy to continue prudent investments, taking into consideration domestic and overseas trends in interest rates and unstable market conditions. 22 Section II Medium-term Management Plan Plan for Creating the Future Together: Stage III From April 2023 to March 2027 The following abbreviations are used in this document. FG: Chugin Financial Group, Inc. BK: The Chugoku Bank, Limited
*1: East Setouchi Economic Zone: Okayama Prefecture, Kagawa Prefecture, eastern Hiroshima Prefecture (Bingo region), western Hyogo Prefecture (Harima region *2: Number of startups for which we provided support: Number of startups as a result of our event for startup support, etc. *3: Number of companies we provided support in business succession: Number of companies to which we provide business succession consulting services *4: Activities contributing to the improvement of financial literacy: Number of events and study sessions that contributed to the improvement of financial literacy, business skills, etc. *5: Customer satisfaction: Sum of "Satisfied" and "Somewhat satisfied" replies in customer questionnaires (Corporate and retail customer questionnaires are conducted every other year.) *6: Labor share in core business net profit before payment of personnel cost: Personnel expenses divided by the sum of core business net profit and personnel expenses
This Plan is the “final stage of the Long-term Management Plan” and the “first Medium-term Management Plan for the Chugin Financial Group." We aim to achieve the KPIs set forth in the Long-term Management Plan by demonstrating results based on the reforms implemented in Stages I and II, and define the long-term direction we should aim for in the next 10 years.
Stage

Results

BPR investments (A shift from administrative affairs to sales activities)
Autonomous sales system and personnel system o Acceleration of development of new businesses o Transition to a holding company system April 2020 to March 2023 Stage April 2023 to March 2027
・ Achieve the Long-term Management Plan by demonstrating the results of Stages I and II ・ Chugin FG’s first Medium-term Management Plan toward the next
April 2017 to March 2020 Stage Action reforms (Strengthening of soft aspects)
1  “Deepening” of regional revitalization SDGs We will contribute to “sustainable development of communities” by drawing out its appeal and potential.
2 Creation of innovations Corresponding materiality (priority issues)
We will create “new value” toward the next phase of growth.

Corresponding materiality (priority issues) Promotion of DX
3 Strengthening of the Group business base We will build “solid foundation” to implement growth strategies.
Corresponding materiality (priority issues)
Scope 2 (indirect emissions from the use of electricity and heat supplied by other companies) by the end of FY2030 *2  The amount of investments and loans from FY2020 included here includes financing for social sectors (healthcare, nursing care, childcare, education, etc.) and environmental sectors (solar, wind, biomass, EV, etc.), as well as support for regional revitalization and SDG/ESG initiatives. Annual number of contracted consultation cases related to business succession, the environment, etc. Annual number of cases handled in relation to testamentary trusts, inheritance support services, etc. Amount invested in employees, such as training and education related expenses, study incentives, Chugin Open Lab activity expenses, and personnel expenses for training and secondment ? • 4 *5 Image of income growth
billion ven Capital utilization (Net interest income) Of which, core domains" +8.5 billion yen ven The above initiatives have effects that are not limited to their respective income and that spread to accumulation of high- quality assets. The largest growth driver is expansion of net interest income through capital utilization. FY2022 result Profit attributable to owners of parent FY2026 target Profit attributable to owners of parent
*Core domains: Local development loans, personal loans, etc.

We, the Chugin Financial Group as a whole, will increase high-quality assets by addressing issues of local communities and customers from upstream, and from a wide perspective. (An increase of 10.5 billion yen in net interest income through capital utilization) Chugin Human Innovations SETONOWA Chugin Energy Products C Cube Consulting Chugin Capital Partners The Chugin Card The Chugin Lease Chugin Asset Management Chugin Securities The Chugoku Bank • The Chugin Operation Center • The Chugin Credit Guarantee •CBS
Growth of Group
+2.0 billion yen
companies Strengthening of comprehensive proposals to customers drawing on the strength of collaboration with the bank. Leading solutions to local issues beyond the scope of finance by leveraging a variety of expertise. High value-added sales activities +1.0 billion yen High-level consultation for challenges faced by customers (Corporate) One-stop solutions from upstream to downstream (Retail) Optimal approaches and proposals according to life events and needs of customers Effects of DX +1.5 billion yen An increase in net sales and generation of resources through reforms of operational processes and next-generation channels 2 Creation of innovations
Capital utilization +10.5 billion yen
Overall asset strategies (Increase the asset balance by 1 trillion yen mainly for loans) ✓ Core fields An increase in local development loans through sustainable finance, regional revitalization, and expansion of share ✓ Strategic investment fields Strengthening of strategic fields such as new businesses, including renewable energy, equity in communities, utilization of overseas branches, and leasing ✓  Market investment field Pursuit of high risks and returns (RORA, etc.) through unified investments in loans and securities Deepening" of regional 3  Strengthening of the Group business base Money 1. “Deepening” of Regional Revitalization SDGS
Through its business activities, the Chugin Group aims to co-create future together with local communities and customers, where we mutually develop. We will draw out appeal and potential of communities by working to “co-create appealing local communities through solution of local issues,” “co-create the sustainable and vigorous business environment,” and “co-create prosperous lives without insecurity," and thereby contribute to sustainable development of communities. We also raise the level of SDG activities undertaken by Group officers and employees so that SDGs will take root in the Group. Initiatives that capture communities from a wide perspective Solution of local issues and co-creation of appealing local communities Inflow of companies and investors from outside the community Community support activities Co-creation of the sustainable and vigorous business environment Life planning support activities Co-creation of prosperous lives without insecurity Inflow of residents from outside the community Initiatives to support startups Solution of local issues and co-creation of appealing local communities (People, products, money, information, and know-how) 31
We will strengthen initiatives that capture communities from a wide perspective by leveraging the strengths of the Group that provides various solution services, such as C Cube Consulting which offer a high level of consultation centered around DX and SX*. In cooperation with stakeholders and partners of communities, we combine DX, SX, etc. with characteristics and issues of each community to aim for “co-creation of appealing communities.” $X x Sightseeing SX x Moving-ins and start-ups DX x Administrative bodies Founding businesses x Cities SX x Mobility SX x Distinctive industry to the region Case study C Cube Consulting The Chugoku Bank Supported the decarbonization initiative undertaken by Nishi-awakura-son in The Chugoku Bank, Limited made a co-proposal together with Nishi- awakura-son of Okayama Prefecture and two private-sector companies for the "Decarbonization Leading Areas" solicited by the Ministry of the Environment and Nishi-awakura-son was selected as a Decarbonization Leading Area. C Cube Consulting played a central role in creating plans and managing the progress, and supported decarbonization of the community.
Case study
SETONOWA
Participated in a project to create a new business which makes use of unused farmland Team Okayama  Project It is a project to create a new business with moss taken from unused farmland. Based on the results of the demonstration experiment to incubate moss protonema taken from the unused farmland in Maniwa-shi, a collaborative team was organized to commercialize and sell the incubated moss. The project aims to generate revenues for farmers and realize a local recycling- oriented sustainable society by effectively utilizing unused farmland. : Using digital technology to bring about innovative changes in business *DX (digital transformation) *SX (sustainability transformation) : Corporate management balancing sustainability and ESG (environmental, social and governance) issues 32
Case study Chugin Financial Group, Inc. Comprehensive collaboration and alliance with Shinjo-son, Okayama Prefecture toward community development Shinjo-son and the Chugin FG have already been actively collaborating on initiatives related to regional revitalization. The collaboration includes support for the introduction of digital services to improve the efficiency of collections operations at village-run educational institutions and promotion of local industries, mainly forestry. Taking the execution of the “Agreement on Comprehensive Collaboration and Cooperation for Regional Revitalization SDGs" as an opportunity, the two parties will further strengthen their initiatives toward sustainable local economy by effectively utilizing their respective intellectual and human resources. Collaborations ✓ SDGs and initiatives for decarbonization in the community ✓ Industrial development centered around forestry and agriculture and an increase in the tourist population ✓  Digital transformation of the community, and so forth Parties with which we entered into collaboration <Reference> agreements (11 municipal governments in total) [Okayama]   Okayama Prefecture, Okayama-shi, Kurashiki-shi, Mimasaka-shi, Tamano-shi, Wake-cho, Maniwa-shi, Takahashi-shi, and Shinjo-son [Hiroshima]  Fukuyama-shi [Kagawa] Mitoyo-shi Case study
Chugin Energy
Establishment of a new electric power company, “Nishi-awakura Hyakunen-no Shinrin Denki,” that contributes to decarbonization of the community
倉百年の森林でんき
“Hundred-Year Forest As part of Nishi-awakura-son's Concept," we built a system to use natural energy produced by the rich nature as electricity and circulate it within the village. We have been contributing to the economic cycle and promotion of decarbonization in the village by providing technology and know-how specialized in renewable energy. ✓ Sale of electricity through on-site power purchase agreement (PPA) (solar power generation using lent rooftops) for public facilities within the village ✓ Operation and management of village-run renewable energy facilities (hydroelectric power plants, biomass power plants and heat supply boilers) ✓ Support services for companies that use electricity as a return for the municipality donation tax deduction (Furusato- Nozei) scheme, and so forth Role rentonnel sing, 5,00, 516 I Provision of management know how a comprehensive support On-site support and technical adv Assessmentof the validation of the projec profibless elsin and functions support 33
We will strengthen startup community support, hands-on support across the Groups, and collaboration with external organizations building on the foundation of the “startup ecosystem” formed centered around the two businesses, namely Okayama Innovation Project and Okayama Tech Planter, and thereby aim to create companies that represent the community. Startup ecosystem high school students to present their research, and a gateway to success for future researchers Hands-on support system Strengthening of the hands-on support system and creation of open innovations through strategic LP investments in venture capitals startups which solve local issues, and local companies
We aim to provide comprehensive financial services as a “co-creation partner” toward realization of sustainability management of customers. More diversified and advanced needs of customers
procurement Chugin Group's solutions Consulting M & A
Card Finance Equity investment Insurance/securities Lease Provide one-stop solutions from upstream to downstream (comprehensive financial services)
Pursuit of comprehensive financial services
Through provision of both consulting and financial services, we pursue high added value of our services. According to customers’ stage and management issues, we pursue timely approaches. Using the bank's customer base as a starting point, we pursue solution of issues through unified efforts of the entire Group. ● SDGs and decarbonization ● DX and SX ● Business succession ● Human resource development ● Channel optimization ●  Use of data ●  Mutual collaborative systems ● Human resource circulation among Group companies
Overseas consulting
▷ Strengthen support for transactions in overseas markets, including purchases and sales, and support for overseas expansion New York
Priority areas We will work together as a Group to improve the sustainability of entire communities through “active engagement activities*¹ with customers” and “support from both
Transformation of service delivery systems Provision of solutions according to segments Size of sales of customers (conceptual diagram) Main solution menu Large size
Mass and small size Transaction lending Corporate card Densai Biz-Direct Business portal and so forth
According to customers’ stage and management issues, we pursue timely approaches. Consolidation of corporations Consolidate offices to transfer sales skills and strengthen human resource development Implement the consolidation from priority areas after trials
Use of digital technology
◆ Promote “digital technology-based complementation and transformation” of existing sales flows by using data and expanding non-face-to-face channels. Stimulation of needs Complete the process from Consultation to contract , on the web Improve understanding
Opening of the Singapore Branch
◆  Opened the Singapore Branch to cultivate new business domains (The branch was opened in June 2023 and is slated to commence) business in October 2023.) 37 Large- to medium size Medium- to small size

Opening of the Singapore Branch
Objective We opened a branch in Singapore which is a financial center in Asia along with Hong Kong and is a hub for Southeast Asia (made the representative office into the branch). (i) Strengthening of support for business partners who are entering into the Southeast Asia market ▷ Support for finance-related services (deposits, loans, and payment functions), which are the most needed by customers’ overseas subsidiaries ▷ Expand trade with not only local companies but also overseas subsidiaries of listed companies, etc. (ij) Strengthening of initiatives related to the maritime industry, which is a locally developed industry > The maritime industry is a locally developed industry of Setouchi and also a distinctive industry of Singapore. ▷ Accumulate high-quality projects by increasing transactions and enhance our presence in the ship sector through strengthening finance for the maritime industry in the region ▷ Expand business in fields such as decarbonization and SX (iii) Business opportunities through collaboration with local financial institutions, etc. ▷ Obtaining syndicated loans in Asia and securing foreign currency funding facilities by building relationships with local financial institutions, and so forth High profitability (SP rate and RORA) Development of specialized human resources (accumulation of know-how, etc.) Taking on challenges and pursuing new business opportunities overseas *Reference: Office building of which our branch is a tenant Aim for the total asset balance of 100.0 billion yen

Create and demonstrate Group synergies
Group collaboration system
◆ We aim to demonstrate Group synergies through the collaboration system originating from the bank’s customer base and the sales offices, which are the Group's strengths. ◆ We support the sales offices, which serve as the originating point, from various angles, and make comprehensive proposals and cross-selling through the united efforts of the Group as a whole to meet customer needs. Direction of the seven corporate-strategy companies The Chugin Lease The Chugin Card Cultivation of large customers and promotion of sustainable leasing Unified sales efforts based on the cashless strategy Chugin Capital Partners Improvement of sustainability of communities through investments Chugin Human Innovations Strengthening and deepening of the core business (staffing service) C Cube Consulting SETONOWA Establishment of a style to provide value toward realization of DX and SX Expansion into planning and development of ToB (for corporations) products Chugin Energy Ordinary income of the seven companies Decarbonization of communities through the solar power PPA business, etc. Four-times growth in the Medium-term Management Plan period + synergies for the BK FY2023 FY2025 FY2026
Through our Group-wide comprehensive financial services, we support realization of customers’ dreams in line with their life plans including “planning of prosperous lives,” “elimination of economic anxiety,” and “smooth transfer of assets to the next-generation.” Planning of prosperous lives Elimination of economic anxiety Smooth transfer of assets to the next-generation Realization of dreams in line with life plans of customers Support for realization of dreams l Co-creation of prosperous future Support for planned asset formation to realize life plans and dreams ll Deepening of comprehensive financial services Restructuring of the customer-oriented sales system and maximization of value provided by the Group III Improvement of customer Creation of timely and optimal opportunities for proposals through personalization
Objective
Support for visualization and realization of life plans Push from savings to investments toward stable asset formation Approaches to work areas drawing on networks Improvement of sales efficiency through system restructuring Provision of comprehensive financial servic Group functions Strengthening the system for smooth tran to the next generation Convenience improvement and expansion of c points through increased digital functions Development of the non-face-to-face sales system and the use of data Improvement of customer experience through channel integration
Major initiative
Consulting based on life plan simulation Strengthening of activities to disseminate and promote new NISA Promotion of financial and economic education for work areas, etc. Segmentation restructuring using customers as a starting point Strengthening and optimization of Group collaboration Enhancement of the sales system for the inheritance business Enhancement of functions of Chugin App Establishment of new non-face-to- face sales offices Consideration of new benefit 40 programs
Co-creation of prosperous future and deepening of comprehensive financial services Support for visualization and realization of life plans Toward realization of dreams ◆  Promote consulting through sharing dreams with customers and visualization of assets, etc. ◆  Overcome challenges in organizing customer information and efficiency by leveraging our strengths and utilizing digital technology
Push from savings to investments toward stable
asset formation
◆   More benefits toward stable asset formation provided by new NISA ◆   Promotion at sales offices utilizing campaigns, etc., and strengthening of non-face-to-face sales at headquarters (addition of web marketing and app functions) Challenge An increase in assets in custody (from savings to investments) Opportunity Establishment of the new NISA system (backed by policies)

Smooth transfer of assets to the
next-generation
◆ Clarify segments and focus on the inheritance-related business for elderly affluent customers ◆ Enhancement of the support system at the bank headquarters Strength Peace of mind thanks to face-to-face services and expertise in the field of inheritance Increasing needs caused by aging of the population Opportunity ● Creation and execution Consulting sales activities centered around sales offices of testaments ● Inheritance tax countermeasures Appropriate advice on life insurance, apartment management, etc. ●  Use and sale of assets Making use of internal networks, as well as business matching ● Sales in work areas Approaches to employees using groupware ●   Life Plan Center ● Digital technology Consulting based on life events Improvement of the convenience of web- based ads, the app, and so forth Restructuring of segments
Improvement of customer experience Improvement of convenience ◆  Allowing banking procedures to be completed non-face- to-face and adding functions to Chugin App Allowing 90% of procedures to be completed non-face-to-face Adding functions such as investment trust functions to the app Provide services regardless of when and Where ◆ Introduction of digital tools to support sales activities Making appointments efficiently through the use of chat Recommendations on needs and when to make
• Distribution of role-playing videos and
Completion of digital procedures Shortening of the time to enter negotiation records through the use of transcription functions Efficiency improvement through the use of the Contact Center Sophistication of EBM information
Non-face-to-face sales through From FY2025 the use of digital technology onward (planned) ◆  The Contact Center (tentative name) will be newly established within the BK’s headquarters to strengthen non-face-to-face sales. ◆ Through database marketing and data linkage to the front-line of sales, we establish sales systems that are the best mix of real and digital systems. Challenge Response to the rapid development of digitalization Strength Specialized and reliable face-to-face services Sales systems that are the best mix of real and digital systems Digitalization of transactions Establishment of a new non-face-to-face sales office (Contact Center) Personalization
Contact Center (tentative name)
New Non-face-to-face sales functions Marketing functions Planning and monitoring
Infrastructure-based transactions in branch counters and work areas are important. Calls Front-line of sales
Staffed chat service Opening of accounts Online consultation

Direction of channels
◆ Increase contact points throughout the Group by developing digital contact points, non-face-to-face contact points, offices open on holidays, etc. ◆  Improve efficiency of branches and ATMs without sacrificing convenience ◆  Invest resources generated through efficiency improvement in growth to further increase contact points
March 2023 March 2027
Digital technology
◆  Promote the use of the app at branch counters and work areas ◆  Enhance app functions and web transactions ◆ Introduce new benefit services ◆  Improve UI and UX'² continuously/ ◆  Accumulate transaction data
Hybrid
◆ Establish the new Contact Center (tentative name) ◆ Strengthen marketing systems ◆  Utilize data analysis and personalized data at other channels
Brick-and-mortar
Make branches a venue for
consulting
Future branch development ◆  Venue for solving and communicating community issues ◆  Consider flexible branch design by, for example, promoting lighter weight branches, in response to local characteristics [Renewal of existing buildings] Effectively use unused space of branches (co-working space, community trading company space, etc.) [Construction of new buildings] Branches equipped with a Life Plan Center, cafe space for study, etc. Branches collaborating with different industry players [Creation of lightweighted branches] Cashless branches, centralized inspection centers, and remote-based branches
Establish a new Apartment Loan Center  From FY2025 onwards
nallenge Clarify who will be the principals of sales Effectively encourage vendors Establish dedicatedly responsible departments in the main areas (within the city of Okayama, etc.) Provide consistent support from sales to administration for the encouragement and efficiency Growth resources eneration 43 2. Creation of Innovations
This Plan aims to create innovations in order to overcome changes in the environment that is becoming increasingly uncertain and continue to solve issues in local communities and meet the diversifying needs of our customers, while steadily "'deepening' regional revitalization SDGs." We will co-create new value by actively using “digital technology and alliances,” while utilizing the following as the driving force for innovations: fostering of an “organizational culture that encourages continuous challenge”; and creation of an organization that makes the most of the “values and sensitivities of diverse human resources." Innovations (New value) Driving force of innovations (business base) Our challenges build our future.
We intend to become a DX company ourselves, and aim to lead and design DX of communities and customers. We will develop and provide customer-oriented services by reviewing existing operations without any exceptions and generating the necessary manpower. We will also strengthen the system to fully make use of digital technology, including development of human resources. We will become a DX company ourselves, lead and support customers, and design local communities digitally together with them. Operational process reforms • Visualization of Group’s operations • Data-driven decision-making • Operational efficiency improvement in all areas, without any exceptions ・Establishment of an inter-group network (Management dashboard) • Sophistication of internal control of the Group as a whole Creation of new businesses • Integration of digital technology and human resources ⇒ New businesses unique to the Group •  Building of an ecosystem in communities • Creation of value through cooperation • Expansion of the new business domains Transformation into next-generation channels • Improvement of customer experience through the use of data • Provision of services integrating face-to-face and non-face-to-face approaches • Digitalization of financial service functions • Enhancement of digital channels Realization of organizational transformation • Development of digital technology-oriented human resources • Establishment of a marketing system including human resources and infrastructure • Agile in-house development systems • System strategies • Promotion of open innovations (Building of API economy and use of cloud systems)
We will implement operational process reforms from an operation-by-operation perspective across the Group on an end-to-end basis "in all areas, without any exceptions." We aim to use the resources generated from the 30% reduction of the operation volume in the new fields. Policy: Implement operational reforms* in all areas, without any exceptions. Operation-by- operation perspective End to End (across the Group) Generation of resources Target Initiated with higher priority Other operations will also be implemented on a progressive basis. Improvements implemented on a department-by- department basis do not lead to fundamental solutions. End-to-end operational process reforms across the Group Use of the resources in new fields "We will reflect knowledge of external parties in our operational reforms. We will also secure a strategic investment budget for the realization of
We will improve functions to enable non-face-to-face transactions, and aim to allow 90% of transactions to be completed on a non-face-to-face basis by FY2026. We will work to improve customer experience (CX) by enhancing the functions of “Chugin App” and “Chugin Business Portal” which are the main non-face-to-face channels for retail and corporate customers, and at the same time, promoting use of accumulated data and research and study of new technologies and services (such as metaverses and Web3.0). Enhancement of web-based procedures By FY2022 Period of this Plan Web-based opening of deposit accounts, investment trust accounts, etc. Actively promote of completion of transactions online General transactions Joint development with TSUBASA Transactions of small quantity and a wide range of products In-house development End of Mar,    End of Mar, End of Mar.    End of Mar.  End of Mar. End of Mar. 2022 2025 2021 2023 2024 2026 *The targeted transactions are those that can be shifted to non-face-to-face transactions excluding cash, etc. handled at branch counters. Data analysis, staffed chat services, (FY2026) nugin Business Portal Enhancement of infrastructure and functions (Electronical contract, electronical delivery, document transfer, chat, etc.) (Mar. 31, 2023) (FY2026) Non-face-to-face sales at the headquarters More accurate and speedier credit management Dissemination of information to persons responsible for face-to-face  sales Introduction to
Instead of trying to complete everything on our own, we will build a system to create new businesses unique to the Group by integrating communities, digital technology, and human resources, while also actively utilizing external networks. In addition, we will enhance and advance embedded financial services using the TSUBASA Fintech common foundation, and promote the utilization and sales to external parties of functions of the TSUBASA general-purpose paperless system and other in-house systems. Building of systems to create new businesses External networks that are "strengths" Local business partners and customers Economic organizations and research institutions Municipal governments and educational institutions Local financial institutions Companies in which funds are invested Different industry players and Fintech companies Overseas networks TSUBASA Alliance Contribute to sustainable local communities Utilization and sales to external parties of through the local digital platform development infrastructure and systems TSUBASA Fintech common foundation ¹   ..... We will actively utilize this foundation to create new digital services such as embedded financial services by leveraging the functions of open APIs*² and collaborating with external business operators. TSUBASA general-purpose paperless system ¹ .....  Effective system infrastructure in terms of bank DX and work style reforms, and actively sold to external parties *1 Jointly developed with banks participating in the TSUBASA Alliance *2 Open API: A mechanism for external business operators, etc. to securely connect to banking systems
We will strengthen development and recruitment of digital technology-oriented human resources to promote DX We aim to transform ourselves into an organization that strategically develops a system infrastructure with superior agility and scalability, and improves the customer experience (CX) through the use of digital technology and data. Development of digital DX professionals Human resources who can lead the promotion of DX initiatives and development and introduction of systems DX planners Human resources who can plan and promote DX projects DX supporters Human resources who understand the basics of DX and equipped with basic knowledge
Recruitment
Strengthen mid-career recruitment of specialized human resources Strengthen relationships with educational institutions and establish innovation courses (to acquire human resources in science)
Re-skilling
• Visualize digital skills of employees • Support their acquisition of skills as part of operations • Jointly develop programs together with external vendors *To acquire skills and knowledge that are needed in new operations, etc. System strategies Bank settlement systems External connection systems Digital infrastructure (Fintech common infrastructure, paperless infrastructure, and in- house development infrastructure) Information systems Sub-systems Strengthening of database marketing Aim to realize “personalization and “timeliness” Integration Introduction of analysis tools Development of human resources for data analysis provision of information Alliances It is not possible for us to create new value with only our own management resources, know-how, and ideas. We aim to co-create new value through active collaboration with various stakeholders, including different industry players.
Basic stance
んんCo-creation and promotion of measures that contribute to the enhancement of corporate value of the Group Co-creation and promotion of measures that contribute to sustainable growth of communities
Wide-area collaboration TSUBASA Alliance Aim to maximize synergies in both net sales and costs generated by leveraging the largest economies of scale as a regional bank ommunity collaboration ●  Okayama Co-creation Partnership JFO日本政策金融公庫●  Okayama Future Co-creation Alliance ● Regional Decarbonization and Creation Okayama Consortium National and prefectural governments Educational Economic research institutions organizations, Local financial etc. institutions Further promote a system of collaboration with diverse partners in the community to solve local issues and promote regional revitalization Collaboration among different industry players ● Coordination agreement concerning regional revitalization (PwC Consulting) ● Investments in ventures by Chugin Capital Partners Chugin Infinity Fund Build a local ecosystem with startups 3. Strengthening of the Group Business Base
For the “deepening” of regional revitalization SDGs and creation of innovation, it is necessary to establish a strong Group business base. Under this Plan, in order to flexibly respond to the changing business environment, we will strengthen the Group business base by, for example, appropriately allocating management resources, realizing evolution of Group governance, and enhancing the value of human capital. 1 “Deepening” of regional revitalization SDGs 2 Creation of innovations
3 Strengthening of the Group business base
Group governance ●  Improvement of the internal control system
● Strengthening of the internal audit system of the Group Organizational culture
We aim to increase PBR by raising ROE through an increase in the profitability and improvement of the capital efficiency.
Awareness of the current situation
During the Long-term Management Plan period (since . FY2017), ROE has remained around 3-4%. •   We recognize that we still have a long way to go to achieve our KPI target of 5% by FY2026. Toward the improvement of ROE, we will accelerate initiatives to increase the profitability and improve the capital efficiency. ROE (%) (TSE standards) End of Mar. Mar. Mar. Mar. Mar. Mar. Mar. 2017    2018    2019    2020    2021    2022 2023
Recently, PBR remained low at about 0.3 times. In order to make it rise, we need to achieve ROE exceeding our capital costs, not to mention 5%. Initiatives ROE Net income/ capital adequacy III
RORA*1
ncrease in the profitabil Net income/RWA*² •  Pursuit of high added value through both consulting and financing (comprehensive and consistent support from the initial stage of projects and strengthening of non-financial profits) •  Investments in growth areas and new businesses •  A shift to highly profitable assets mainly at market investment departments prove capital efficien Leverage ratio (RWA) RWA*²/capital adequacy •  Control of the total capital adequacy ratio (The range has been set since April 2023 (p. 55).) Strengthening of returns (The shareholder return ratio of at least 40% has been set since April 2023 (p. 56).) Optimization of capital composition (Consideration for CET1 ratio management, etc.) *1 RORA = Return On  Risk Weighted Asset *2 RWA = Risk Weighted Asset 54
Leveraging our high level of soundness, we will actively use capital for regional revitalization.
Capital utilization
• We will use assets for regional development by taking advantage of our high level of soundness • While giving top priority to the core areas, we will expand our initiatives as strategic investments in areas such as renewable energy projects, equity supply to local communities, further utilization of overseas bases, and new business domains including leasing. •  Market investments will be carried out in an agile and flexible manner in accordance with the market trend.
Active initiatives based on the sales strategies Integrated investments according to the market environment Balance plan Core areas Strategic investments About 0.5 About 4.5 trillion yen trillion yen (Up about 200.0 billion yen) (Up about 500.0 billion yen) Market investments Agilely invest in loans and securities according to the market environment Mar. 31, 2023 Mar. 31, 2027
Capital level
Consolidated total capital adequacy ratio for FY2026: 11.0% - 13.0% •  Striking a good balance between the perspectives of communities, customers, shareholders and investors, and the soundness as a bank is of importance. •  The control range is set assuming the following buffers, with the viewpoints of “profitability (capital efficiency)” and “soundness.” Growth investment buffer ・・・Additional source of growth investments Risk buffer・・・Preparing for unforeseen circumstances
Consolidated total capital adequacy ratio
Targeted levels
Capital Policy  — Reduction of Cross-shareholdings and Shareholder Return Policy一We will reduce cross-shareholdings and use the capital generated for an agile capital policy to realize our growth strategy. We will increase returns to shareholders to further clarify our stance on shareholder returns.
Reduction of cross-shareholdings
Basic policy We will limit cross-holdings to cases in which it is determined necessary for the sustainable growth and enhancement of the corporate value of the Group and the issuers, and reduce them through dialogs with the issuers from the perspectives of capital efficiency and reduction of the risk of holding the shares. The Board of Directors will examine the status on a regular basis. Reduction plan Mar. 31, 2022 Sep. 30, 2022 Mar. 31, 2027 Shareholder return policy Shareholder return ratio of At least 40% through dividends and share buybacks *Book value. Including listed shares, unlisted shares, and deemed holding shares
We define human capital investments as “investments of money and time in employees which contribute to the enhancement of corporate value," and intend to increase human capital investments significantly, with a focus on investments related to human resource development and engagement improvements in line with our business strategy. 0.3 billion yen
Re-skilling
In order to respond to the changing business environment, we will promote acquisition of skills in new areas and changes of job functions in an organized way. *Program to support for changes of job functions (changes of job functions to corporate sales). To be expanded (currently being implemented) *Digital technology and DX programs: Full-fledged implementation to commence in FY2023 (partially being implemented) *Second career support: To be systemized in FY2023 (partially being implemented) Expenses related to training, e-learning, correspondence courses, and career consulting ▷ Incentive money for studying ▷  Expenses for Chugin Open Lab activities, and so forth Personnel expenses for training courses ▷ Personnel expenses for seconded trainees ▷ Personnel expenses for time engaged in Chugin Open Lab (Released on April 14, 2023) Up-skilling and re-skilling Engagement improvements Promotion of initiatives toward creation of innovations • Wage raises and regular salary increases will be about 4% altogether. •  Raise in starting salaries
Engagement
We work to improve engagement through measures to invigorate individuals and organizations and verification through surveys. U se surveys Understand emotions and reactions to messages through high-frequency SURVEYS
We will form the foundation for creation of innovations by having diverse human resources within the Group and establishing an environment in which each of them can demonstrate their individuality and strengths and play an active role.
Promotion of active participation
by women
We promote active participation by women from the perspectives of effective use of human capital and creation of innovations to meet diversifying customer needs. Ratio of female managers
Mid-career recruitment and
specialized course
The Company will strengthen its mid-career recruitment and specialized course operations, focusing on the operations of its headquarters and group companies, in step with the expansion of its business lines. Number of mid-career recruits Strengthening of specialized course operation Results in the past four years: 49 persons Cumulative total of the plan ▷  Institutionalization of paid referrals and alumni recruitments ▷ Increase hiring of new specialized graduates (innovation course) ▷ Increase the number of human resources allowed to have second job, and system establishment therefor ▷ Implementation of scout-based recruitments ▷ Strengthening of recruitment at each Group company 1 ▷ Establishment of, and assignment to, new positions open only for female employees (affirmative action), revision of promotion requirements, promotion of active use of an open application system, and strengthening of the organizational system 2 ▷ Establishment of a new internal mentorship system, and continued implementation of TSUBASA Cross-mentorship System, Diamond Training, etc. 3 ▷ Enhancement of diversity-related training, promotion of ikubosses (managers who have understanding of employees on childcare, etc.), and so forth
We not only encourage each employees to take on challenges through our values and slogans, but also aim to create a corporate culture that allows them to continue to take on challenges by continuing efforts to give shape to those challenges.
Chugin Values  (Partially excerpted)
[As a company] We provide job satisfaction and opportunity for growth. We will devote ourselves entirely, in order to support each and every one of employees in their challenges. Brand Slogan and Statement
Our challenges build our future.
We are in times of change. Turn to an offensive, not a defensive, position. Let your dreams come true without getting into a rut. Chugin will evolve into a comprehensive financial group to co-create a rich future together with its customers. Optimum solutions will be created for diversified and sophisticated issues while we listen sincerely to customers' opinions, on the back of our deepening financial services. We may experience failure in taking on the challenge of expanding our business domains. We may also be caught in trouble and suffer when we face a question without a right answer. Still, we refuse to escape. Our challenges build our future. Challenges each of us face build our future. This is our belief. Each one of us will proactively take on the challenge of each issue. What we see over the horizon is an area where happiness circulates and the future of dreams come true. Today, we walk in excitement toward our challenges.
Chugin Open Lab
● An internal venture system that started in April 2021 ● We make use of plans they proposed and link them to the commercialization. (At present, the second phase of the project is running.) Participation of 167 persons in 39 teams in the first phase Results ●  Established Chugin Energy, Inc. ● Commenced the PR video broadcasting service for customers in lobbies of sales offices, etc. ● Fostered a culture in which people think and communicate independently Our challenges build our future. Chugin Financial Group, Inc. This material contains forward-looking statements. These statements do not guarantee our future business performance and include risks and uncertainties. It should be noted that future performance may differ from the targets mentioned herein due to changes in the management environment and other factors.