FY2022 Earnings Results Briefing (References) Our challenges build our future. Chugin Financial Group, Inc.
Economic Structure of Okayama Prefecture
4 6 8 Economic Conditions of Okayama Prefecture
Management Indicators, etc. for Chugin Financial Group, Inc.
Management Indicators, etc. for The Chugoku Bank
Economic Structure of Okayama Prefecture
Source: FY2019 Annual Report on Prefectural Accounts, Cabinet Office
Chugin Financial Group, Inc. Source: Annual Report on Prefectural Accounts, Cabinet Office *The sum may not be 100% due to rounding. Proportion of incoming/outgoing transfer (net) of goods and services in gross prefectural domestic product (at current prices) Source: Annual Report on Prefectural Accounts, Cabinet Office
Percentage mix of value of manufactured goods shipments (2020)
(%)
Source: Economic Census, METI *The sum may not be 100% due to rounding.
Presence of the Mizushima Industrial Zone
Proportion of the Mizushima Industrial Zone in Okayama Prefecture’s value of manufactured goods shipments (2019) Percentage mix of Mizushima Industrial Zone’s value of manufactured goods shipments by industry (2019)
Population and number of households of the Chugoku-Shikoku region -2.0 Source: Survey of Population, Demographics and Number of Households Based on the Basic Resident Register, Ministry of Internal Affairs and Communications Note: Population and number of households are as of January 1, 2022; the change in the number of households represents the change between January 2021 and January 2022.
Percentage of population under 65 years old in the Chugoku-Shikoku region
Source: Survey of Population, Demographics and Number of Households Based on the Basic Resident Register, Ministry of Internal Affairs and Communications
Our challenges build our future. Chugin Financial Group, Inc. Future population estimates of Okayama Prefecture
Future population estimates of the Chugoku-Shikoku region
(2015 indexed at 100)
Chugin Financial Group, Inc.
Highways intersect in the shape of one
Our challenges build our future. Chugin Financial Group, Inc. Freight forwarding volume in the Chugoku-Shikoku region Floor space of warehouses in the Chugoku-Shikoku region
Chugin Financial Group, Inc. High potential for renewable energy generation by taking advantage of the prefecture’s many sunny days Weather Okayama Prefecture is a "sunny prefecture" that is blessed with a mild climate with little rainfall. Source: Okayama Prefecture website 276.7 days (No. 1 in the country) Okayama Prefecture is blessed with abundant sunshine and very few natural disasters such as earthquakes, tsunamis, and typhoons. Day Source: "National Weather Diagram" by the Japan Meteorological Agency Renewable energy self-sufficiency (sustainable renewable energy zone) The definition of renewable energy self-sufficiency (sustainable renewable energy zone) is “an area in which all of the energy demand in the area can be supplied with renewable energy obtained in the area."
Economic Conditions of Okayama Prefecture Chugin Financial Group, Inc.
Shaded areas represent periods of economic recession (as determined by the Cabinet Office). The BSI (Business Survey Index) is designed to measure corporate managers’ confidence in sales and business conditions and their forecasts for their company's performance (favorable turnaround, unchanged, deterioration). A favorable turnaround quarter-on-quarter or year-on-year warrants an A, while unchanged performance warrants a B, and deterioration a C (A+B+C=100). The BSI is calculated by using the following equation: (A-C)÷2. Consequently, the more corporate managers that indicate their company’s performance is taking a positive turnaround, the closer the index reaches to 50. Conversely, the more respondents that determine performance is deteriorating, the closer the index is to -50. Our challenges build our future.
Chugin Financial Group, Inc. Industrial production: Weakening against the backdrop of the global economic slowdown and other factors (2015 indexed at 100; seasonally adjusted) [Industrial production index] Source: Okayama Prefecture Statistical Analysis Section
Exports: Remaining within a flat range
[Value of custom-cleared exports] (Yen basis; billion yen) Source: Kobe Customs Chugin Financial Group, Inc.
Capital investment: Picking up mainly in the manufacturing industry [YoY change in capital investment]
Source: Head Office and Okayama Branch of Bank of Japan Public investment: Decreasing against the backdrop of the completion of a round of reconstruction work [YoY change in public investment] (billion yen) (%) Source: West Japan Construction Surety Co., Ltd.
Chugin Financial Group, Inc. Consumer spending: Heading for recovery amid the weakening of the impact of COVID-19 [Department store and supermarket sales (all stores; YoY)] Source: Chugoku Bureau of Economy, Trade and Industry [New passenger car registration (including light motor vehicles; YoY)]
Chugin Financial Group, Inc. Housing investment: Slowing down due to rising construction costs, etc. [New housing starts (six-month moving average)] [Rental housing starts (six-month moving average)] Source: MLIT
Our challenges build our future. Chugin Financial Group, Inc. Employment situation: Gradually picking up Source: Employment Service Section, Okayama Labour Bureau, Ministry of Health, Labor and Welfare [Total sum of cash earnings (2020 indexed at 100; seasonally adjusted)] Source: Seasonally adjusted value calculated by the Okayama Economic Research Institute based on data from the Statistic Analysis Section of Okayama Prefecture [Jobs-to-applicants ratio (seasonally adjusted)] (Times) 2.2 Our challenges build our future. Chugin Financial Group, Inc.
Land prices: Moving toward recovery [Official land price (YoY)] Source: Hilly and Mountainous Areas Development Division, Okayama Prefecture Corporate bankruptcies: The number of bankruptcies remaining flat [Corporate bankruptcies (quarterly)] Source: Okayama Branch, Teikoku Databank
(Note) As the Company was established on October 3, 2022, there are no consolidated figures for FY2021 (and as of March 31, 2022). However, for a reference purpose, the consolidated figures for FY2021 (and as of March 31, 2022) of the former organization, the parent of which was The Chugoku Bank, are used for comparison.
2H FY2022 Result FY2023 Plan *2 Starting from the second half of FY2022, capital allocation has been managed on a consolidated basis for Chugin Financial Group, Inc. Accordingly, part of Tier 2 Bond issued by the bank is deducted from the allocation source. (Reference) IRRBB (Interest Rate Risk in the Banking Book) [Roles of different types of capital]
The following table indicates capital allocation and integration risks in 2H FY2022 and capital allocation in FY2023.
Management Company, Limited) recorded gains on sale of shares among Group companies in FY2022 in association with the transition to a holding company system.
Management Indicators, etc. for The Chugoku Bank
Our challenges build our future. Chugin Financial Group, Inc.
Our challenges build our future.
Note 2: Excluding offshore loans. Including our NCDs.
Outstanding balance based on the remaining number of years to maturity for securities
Chugin Financial Group, Inc. Breakdown of use of loans executed Total for period from Apr. 2022 to Mar. 2023 Ratio of Ioans by interest type for new homes (%) Total for period from Apr. 2022 to Mar. 2023
Loans based on the Financial Reconstruction Act
Our challenges build our future. Chugin Financial Group, Inc. 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