FY2023 Earnings Results Briefing (References) Our challenges build our future. Chugin Financial Group, Inc.
Economic Structure of Okayama Prefecture
Management Indicators, etc. for Chugin Financial Group, Inc.
Economic Conditions of Okayama Prefecture
Management Indicators, etc. for The Chugoku Bank
Economic Structure of Okayama Prefecture
Our challenges build our future. Chugin Financial Group, Inc. Percentage mix of gross domestic product by economic activity 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: Survey on Economic Structure (all business establishments), METI
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: The population and number of households are as of January 1, 2023; the change in population and the number of households represents the change between January 2022 and January 2023.
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 (Thousand people)
Future population estimates of the Chugoku-Shikoku region
(2020 indexed at 100)
Chugin Financial Group, Inc. Cross points of land transportation in Western Japan Two east-west highways (SANYO EXPWY and CHUGOKU EXPWY) and a highway from the Sea of Japan to the Pacific Ocean via the Seto Inland Sea intersect at two locations in the prefecture. region. Warehouses are located in an area wi two hours of the Okayama interchan Population: Over 16 million The plants are located in places the climate is mild and disasters ar The plants have abundant sunshine an water. Okayama and Shikoku form a singl economic zone. • The number of people using this bridge within the zone is the highest of the three routes. Source of map: Okayama Prefectur website Construction of the Mimasaka-Okayama Road is under way, with the aim of
Our challenges build our future. Chugin Financial Group, Inc. Freight forwarding volume in the Chugoku-Shikoku region (Million ton-km) Floor space of warehouses in the Chugoku-Shikoku region (1,000 m²) 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” blessed with a mild climate and little rainfall. 276.7 days   * Days with less than 1 mm of precipitation (No. 1 in the country) Okayama Prefecture is blessed with abundant sunshine and very few natural disasters such as earthquakes, tsunamis, or typhoons. Source: Okayama (Days) Prefecture website
Renewable energy self-sufficiency (sustainable renewable energy zone) The definition of renewable energy self-sufficiency (the sustainable renewable energy zone) is “an area where all of the energy demand of the area can be The highest self- sufficiency rate in the Chugoku region! Created based on the FY2022 Sustainable Zone Report by Kurasaka Environmental Research Laboratory of Chiba University and the Institute for Sustainable Energy Policies Materials 12 Economic Conditions of Okayama Prefecture
The BSI (Business Survey Index) is designed to measure corporate managers' confidence in sales and business conditions, as well as their forecasts for their company's performance (favorable turnaround, unchanged, or deterioration). A favorable turnaround quarter-on-quarter or year-on-year warrants a grade 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 there are who indicate their company's performance is undergoing a positive turnaround, the closer the index approaches to 50. Conversely, the more respondents there are who determine their performance is deteriorating, the closer the index approaches to -50. Chugin Financial Group, Inc.
Industrial production: Slowdown is seen in some areas. [Industrial production index] (2020 indexed at 100; seasonally adjusted) Source: Okayama Prefecture Statistical Analysis Section
Exports: Signs of bottoming out seen
[Value of custom-cleared exports] (Yen basis; billion yen)
Capital investment: Picking up mainly in the manufacturing industry [YoY change in capital investment]

Public investment: At a standstill
[YoY change in public investment] Our challenges build our future. Chugin Financial Group, Inc.
Consumer spending: Gradually recovering against the backdrop of an increase in the flow of people, etc. [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)]
Housing investment: Weakening due to rising construction costs, etc. [New housing starts (six-month moving average)] (Units) [Rental housing starts (six-month moving average)]
Our challenges build our future. Chugin Financial Group, Inc. Employment situation: Gradually picking up [Jobs-to-applicants ratio (seasonally adjusted)] (Times) Source: Employment Service Section, Okayama Labor Bureau, Ministry of Health, Labour 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 Statistical Analysis Section of Okayama Prefecture
Our challenges build our future. Chugin Financial Group, Inc. Land prices: Recovering [Official land price (YoY)] (%) Source: Hilly and Mountainous Areas Development Division, Okayama Prefecture Corporate bankruptcies: On the rise due to an impact of surging commodity prices [Corporate bankruptcies (quarterly)] (Cases) (billion yen) 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 reference purposes, 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.
*2   As capital allocation has been implemented on a consolidated basis for the Chugin Financial Group since H2 of FY2022, a portion of Tier 2 bonds issued by the Bank is de the allocation source. (Reference) IRRBB (Interest Rate Risk in the Banking Book) (consolidated for the FG) (as of the end of Mar. 2024)
[Role of each source of capital]
The capital allocation and integration risk in FY2023 and the capital allocation in FY2024 are
among Group companies in FY2022 in association w ith the transition to a holding company system.
Management Indicators, etc. for The Chugoku Bank
2.Excludes offshore deposits,and includes our NCDs
Outstanding balance by remaining period to maturity for yen-denominated Securities Duration
[Breakdown of use of loans executed]   (%) Total loans executed during the period From Apr.2023 to Mar.2024 [Ratio of loans by interest type] (%) Total loans executed during the period From Apr.2023 to Mar.2024
Loans disclosed 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