Resona Holdings, Inc. · TSE:8308
Resona — FY2016 Earnings Presentation
85 slides from Resona's earnings presentation, July 2017
Slide 1: Business Results for FY2016 and Medium-term Management Plan
Business Results for FY2016 and Medium-term Management Plan July 2017
Slide 2: Table of Contents
Table of Contents Resona Group at a Glance Medium-term Management Plan P3 Resona Group at a Glance P24 Overview of the Mid-term Management Plan P4 Population and Economic Scale of Resona’s Primary Operating Base P25 Income and Cost Structure Reforms P5 Loan Portfolio, Interest Margin and Cost to Inc
Slide 3: Resona Group at a Glance
Resona Group at a Glance Outline of Business Results for FY2016 and Updates on Major Businesses Medium-term Management Plan Direction of Capital Management Reference Material 2
Slide 4: Resona Group at a Glance
Resona Group at a Glance Resona focuses management resources on Tokyo and Kansai metropolitan areas and retail banking business Resona Group is the largest retail-focused bank with full-line trust capabilities in Japan with a well-established customer base comprising approx. 13 million retail ac
Slide 5: Population and Economic Scale of Resona's Primary Operating Base
Population and Economic Scale of Resona’s Primary Operating Base Prefectures where Resona’s franchise is concentrated account for more than 30% of Japan’s population and GDP Such prefectures are comparable to some countries in terms of GDP Prefectural GDP in USD Compared Prefecture Population*1
Slide 6: Loan Portfolio, Interest Margin and Cost to Income Ratio
Loan Portfolio, Interest Margin and Cost to Income Ratio Loans provided to SMEs and individuals account for over 80% of total loans. Interest margins are higher relative to mega bank group Through operational reforms and efficient management, Resona mitigated the high-cost structure inherent in
Slide 7: Stable Earnings Trend and High Profitability
Stable Earnings Trend and High Profitability Resona has consistently generated stable profits supported by our sound balance sheet Historical Consolidated ROA*1 Resona HD Net Income Attributable Y275.1 bn Y220.6 bn Y211.4 bn Y183.8 bn Y161.4 bn to Owners of the Parent *1. Source: Company disclosur
Slide 8: Outline of Business Results for FY2016 and Updates on Major Businesses
Resona Group at a Glance Outline of Business Results for FY2016 and Updates on Major Businesses Medium-term Management Plan Direction of Capital Management Reference Material 7
Slide 9: Outline of Financial Results for FY2016
Outline of Financial Results for FY2016 FY2016 FY2017 Resona HD consolodated v s. Target Net income attributable to owners of the parent : (JPY bn) YoY change Nov . Target JPY161.4 bn % 2016 Down 22.3 bn, or -12.1%, YoY, or (8.6) bn below the target Net income attributable to owners of the paren
Slide 10: Factors for the Changes in Periodic Profits (YoY Comparison)
RHD Factors for the Changes in Periodic Profits (YoY Comparison) Consolidated (JPY bn) Actual net operating profit (56.8) Gross operating profit (56.4) Net interest income (23.4) NII from Other Income domestic items, taxes and Other Fees and net loans and other NII commission Credit- (13.7) deposits
Slide 11: Trend of Loans and Deposits
Total of Trend of Loans and Deposits Group Banks Average loan / deposit balances, Trend of average loan balance (Domestic account) rates and spread (JPY tn) Avg. loan balance YoY (right scale) *1 FY2016 FY2017 Avg. loan to SMEs +4.0％ +3.9％ Avg. bal : Trillion Yen +1.84% +2.56% Income/Cost : Billi
Slide 12: Term-end Balance of Loans and Deposits
Total of Term-end Balance of Loans and Deposits Group Banks Term-end loan balance Term-end deposit balance JPY tn, JPY tn, % represents % represents YoY change YoY change Corporate (Large companies and other) *1 Other Corporate (SMEs) Corporate deposits Corporate (Apartment loans) Individual depo
Slide 13: Capex-related Loans / Loans to Healthcare Industry / PB Business
Total of Capex-related Loans / Loans to Healthcare Industry / PB Business Group Banks Capex-related loans*1 66% of the respondents intending to increase Capex Capex-related loans increase JPY87.2 bn YoY +3% increase from last survey (Jan. 2016 to Feb. 2016) +5.0% （JPY bn） +4.6% [Does your compan
Slide 14: Trend of Residential Housing Loans
Total of Trend of Residential Housing Loans Group Banks Composition of newly originated residential New loan origination housing loans by interest rate type (JPY tn) Share of fixed rate residential housing loans Share of variable rate residential housing loans Flat 35 3% 1% 2% 4% 7% 8% 12% Residenti
Slide 15: Trend of Fee Income
RHD Trend of Fee Income Consolidated Consolidated fee income ratio at 28.5% for FY2016 JPY bn, % represents YoY change Consolidated fee income ratio*1 30.0% 28.5% 30.0% 26.7% 27.2% 26.0% Consolidated fee income 190.0 171.0 25.0% 169.2 168.7 160.6 (+6.4% ) 158.7 (-4.7% ) 15.5 16.2 Insurance, 11.0 Inv
Slide 16: Asset Formation Support Business
Total of Asset Formation Support Business Group Banks Balance of asset formation support products sold to individuals (JPY tn) Asset formation support product 16.1% 16.0% 16.2% Number of individual customers 6 15.4% ratio*1 14.3% having investment trust, fund FX15% deposits and 4.71 wrap and insur
Slide 17: Major Fee Businesses
Total of Major Fee Businesses Group Banks Trust-related business (JPY bn) (Reference) Number of new asset succession-related contracts Income from trust solutions offered for asset and business succession Income from Pension/Securities trust Will trust Asset succession Trust for transfer of +Estate
Slide 18: Credit Costs and NPL
RHD Consolidated Credit Costs and NPL Total of Group Banks Trend of NPL balance and ratio Trend of credit costs (Total of Group Banks) FY2014 FY 2015 FY 2016 FY 2017 (Financial Reconstruction Act criteria) (JPY bn) Plan Unrecoverable or valueless claims Net credit cost (RHD consolidated) (1) 22.3 (2
Slide 19: Securities Portfolio
Total of Securities Portfolio Group Banks Securities Portfolio Status of policy-oriented stocks held Breakeven Nikkei average: Approx. 6,200 yen (JPY bn) 2015/3 2016/3 2017/3 Unrealized Decrease in listed stocks in FY2016 (acquisition cost): gain/(loss) JPY3.1 bn, Available-for-sale securities *1
Slide 20: Capital Adequacy Ratio
RHD Capital Adequacy Ratio Consolidated CAR (Domestic std.) and CET1 ratio* (International std.) as of Mar. 31, 2017 were 11.69% and 8.59%, respectively, maintaining sound capital adequacy level * Excluding unrealized gain on available for sale securities Domestic standard (Reference) Internationa
Slide 21: Earnings Target and Dividend Forecast for FY2017
RHD Consolidated Earnings Target and Dividend Forecast for FY2017 Total of Group Banks RHD consolidated Common DPS 1st Half Full-year YoY YoY （JPY bn） DPS target target change change Net (interim) income Common stock attributable to owners (1) 73.0 150.0 (11.4) (3) 20.0 yen +1.0 yen (annual) of the
Slide 22: Outline of Financial Results of each Segment (1)
Total of Group Banks Outline of Financial Results of each Segment (1) and loan guarantee subsidiaries Actual net operating profit decreased by JPY44.4 bn YoY due to slowdown of customer divisions YoY (JPY bn) (JPY bn) FY2016 Change Personal Gross operating profit (1) 465.7 (52.3) Banking Customer (3
Slide 23: Outline of Financial Results of each Segment (2)
Total of Group Banks Outline of Financial Results of each Segment (2) and loan guarantee subsidiaries Consumer Banking Corporate Banking Actual net operating profit : down JPY30.8 bn YoY Actual net operating profit : down JPY20.5 bn YoY Segment interest spreads decreased due to decline of Se
Slide 24: Medium-term Management Plan
Resona Group at a Glance Outline of Business Results for FY2016 and Updates on Major Businesses Medium-term Management Plan Direction of Capital Management Reference Material 23
Slide 25: Overview of the Mid-term Management Plan
Overview of the Mid-term Management Plan Vision “Retail No.1” “Financial Services Group” that is most supported by regional customers as it walks with them into the future Construction of “Next-generation Retail Financial Services Model” Accomplishment of Medium- to Long-term Income Structure Reform
Slide 26: Income and Cost Structure Reforms
Income and Cost Structure Reforms Develop tolerance to prolonged ultra-low interest rate Higher profitability via perfection of new business model and environment via income and cost structure reforms better operating environment (JPY bn) Income structure Cost structure Further growth reforms reform
Slide 27: KPIs
KPIs 1. Diversify income source and increase fee income by establishing a new business model 2. Improve efficiency through further cost structure reform 3. Seek optimal balance between 1) profitability improvement and 2) higher capital adequacy to enhance Resona’s corporate value sustainably 4. Plan
Slide 28: Basic Strategies: (1) Evolution of Omni-Channel
Basic Strategies: (1) Evolution of “Omni-Channel” Expansion of the Customer Contacts Expansion of the Customer Base Digital Face-to-Face (Non-face-to-face) Customers Resona has not had effective contracts with Holiday sales bases Entirely web/smartphone-based +30 services Customers needs Integratio
Slide 29: Seven Days Plaza Shinjuku-Nishiguchi
Seven Days Plaza Shinjuku-Nishiguchi (Started operation in May 2017) Operated by 3 staffs “only” / Focusing on consulting Pepper (Robot) welcomes guests Open until 9pm on weekdays at an attractive location Weekdays: Open 1pm to Paperless 9pm Back-less Sat. Sun. and Holydays： Open 10am to 6
Slide 30: Basic Strategies: (2) Development of 26,000 Omni-advisors
Basic Strategies: (2) Development of 26,000 “Omni-advisors” All Resona Staff Providing Solutions Consultants who can understand true latent × Expand sales × Improve ability to need of customers contacts x time offer solutions “Customers' happiness is our pleasure” Improve productivity through digi
Slide 31: Basic Strategies: (3) Establishment of Omni-regional Platform
Basic Strategies: (3) Establishment of “Omni-regional” Platform Full-scale Introduction of “Smart Store” (Internet Branch): Providing new value to more customers Nationwide sales area Expand Smart Account function -> Platform for daily life Entirely app-based services -> Families ・・・・・・・ [Domi
Slide 32: Business Strategies
Business Strategies Solutions for business growth, Total life solutions turnaround and succession Solutions for individual customers’ anxieties and concerns, Supports to SME customers to solve business challenges and for higher conveniences Cultivating “Retail x Trust x AM x Real Estate” further Bus
Slide 33: Business Strategies: Asset Formation Support Business
Business Strategies: Asset Formation Support Business Substantially Expand Asset Formation Support Business Actualize medium/long-term asset formation needs Ultra-Low Interest Rates Legal and Tax Backup Promoting understanding of investment tax breaks key (iDeCo NISA) Ultra-Aging Society to expa
Slide 34: Business Strategies: Settlement Business
Business Strategies: Settlement Business Challenge to advanced and convenient settlement services by making best use of new technologies Structural Change toward Cashless Settlement; Expansion of Debit Card Market [YoY Change in Settlement Volume (2016)] Resona Debit Card: +33.7% ＞ eMoney *1: +10.8%
Slide 35: Business Strategies: Succession Business
Business Strategies: Succession Business Realize a No. 1 Brand in Succession Solution Brand [Succession Trends & Projection *1] [Succession Tax Scope (People)*2] Succession market expanding; 1.67m twofold increase in taxable persons people 103,000 1.31m due to inheritance tax system revision peopl
Slide 36: Business Strategies: SME Business
Business Strategies: SME Business Provide Optimal Solutions at Optimal Timing for Each Growth Stage Provide functions/expertise of commercial bank utilizing trust Strengthen marketing capabilities and capabilities (Current) Borrower-centered: 80,000 improve productivity simultaneously -> All cor
Slide 37: Business Strategies: International Business
Business Strategies: International Business Supports to SMEs to Develop Overseas Business Mainly in Asia Services offered by corporation among domestic branches, JV bank, overseas representative offices and overseas partner banks Overseas alliance network has expanded to 17 partner banks coverin
Slide 38: Business Strategies: Individual Loan Business
Business Strategies: Individual Loan Business Be a No.1 Individual Loan Provider by Accommodating Sound Funding Needs Protracted low interest rates Diversification of lifestyles ICT evolution/diffusion More advanced promotion Development of new markets Penetration of screening and Maintain/inc
Slide 39: Strengthen Marketing Capabilities and Improve Productivity through Digitalization
Strengthen Marketing Capabilities and Improve Productivity through Digitalization Build next-generation retail financial services model adapted to changes in business environment Expectation of simple, convenient, high added-value transaction style Necessity of improving staff productivity ahead
Slide 40: Basic Agreement Concerning a Business Integration (Policies and Structure)
Basic Agreement Concerning a Business Integration between The Minato Bank, Ltd., Kansai Urban Banking Corporation and The Kinki Osaka Bank, Ltd. Basic Policies of the Integrated Group To create a new retail financial services model that is in step with the future of the Kansai region and beyond th
Slide 41: Basic Agreement Concerning a Business Integration (Summary)
Basic Agreement Concerning a Business Integration between The Minato Bank, Ltd., Kansai Urban Banking Corporation and The Kinki Osaka Bank, Ltd. Summary of the Integrated Group The Integrated Group will be one of the leading regional financial groups in Japan with a competitive and full-scale bran
Slide 42: Composition of Resona Holdings' Board of Directors
Composition of Resona Holdings’ Board of Directors 6 outside directors 4 internal directors Tadamitsu Matsui Mitsudo Urano Kazuhiro Tetsuya Kan Chairperson, Chairperson, Higashi Representative Nominating Committee Compensation Executive Officer President and Member, Compensation Committee Representa
Slide 43: Superior Corporate Governance system ensures transparency and objectivity
Superior Corporate Governance system ensures transparency and objectivity The first Japanese banking group which adopted the committees-based corporate governance structure in 2003 Board of Directors Majority of the Board members, six out of ten, are independent outside directors with wide range of
Slide 44: Direction of Capital Management
Resona Group at a Glance Outline of Business Results for FY2016 and Updates on Major Businesses Medium-term Management Plan Direction of Capital Management Reference Material 43
Slide 45: Direction of Capital Management
Direction of Capital Management Seek optimal balance among 1) higher capital adequacy, 2) investment for future growth and 3) enlargement of shareholder return CAR target Shareholder return policy Secure sufficient capital adequacy under the Japanese Domestic Std. Common DPS planned for FY2017:
Slide 46: Reference Material
Resona Group at a Glance Outline of Business Results for FY2016 and Updates on Major Businesses Medium-term Management Plan Direction of Capital Management Reference Material 45
Slide 47: Overview of the Impacts from the BOJ's NIRP on Consolidated BS
Overview of the Impacts from the BOJ’s NIRP on Consolidated BS Impacts that surfaced already are manageable Total assets JPY48.4 tn (Mar. 31, 2017) （JPY(0.6) tn, YoY) Impacts of the NIRP FY2016 Loans Fixed-rate loans*1 Deposits (JPY bn) JPY28.1 tn JPY6.5 tn (23%) Act and (+0.5 tn) ③ NCDs ① Loans (9.
Slide 48: Resona's Challenges Attracting Attentions from Outside
Resona’s Challenges Attracting Attentions from Outside Resona’s challenges towards “Retail No.1” are highly evaluated by various institutions Corporate Governance Nikkei’s Survey on Banks’ 2015Nikkei Superior Products of the Year ® 2015 Retail Capability 2016 and Services Awards Japan Association of
Slide 49: For Further Sustainability Improvement
For Further Sustainability Improvement Corporate culture that cherishes the corporate credo of “Always together with society” In order to improve the Group’s sustainability, Resona Group will fulfill social responsibilities through its primary business, taking into account such societal demands as
Slide 50: Upgrade Segments
Measures to Build Multifaceted Business Relationships with Customers Visible progress has been made through the increase in the number of “Resona Loyal Customers” Number of Customers Top-line Avg. # of Customer segments based on (thousands) Income Products Increase life-time profits by upgrading the
Slide 51: Achievements in Cross-selling Efforts Measured with KPIs
Achievements in Cross-selling Efforts Measured with KPIs (YTD) Primary Index RLCs = Clients to whom the group have achieved the depth of transaction to some extent (Number of customers in thousands) Mar. 31, 2016 Mar. 31, 2017 Change AUM or condominium loan (1) Premier 55 56 + 1.7 exceedin
Slide 52: Business Results by Major Group Business Segments
Business Results by Major Group Business Segments “RVA”*1 and “RAROC” as management indicators to measure profitability to allocated capital Management Accounting by Major Group Business Lines (FY2016) (JPY bn, %) Profitability Soundness Net operating profit after a deduction of credit cost Net pr
Slide 53: Consolidated Subsidiaries and Affiliated Companies
Consolidated Subsidiaries and Affiliated Companies Consolidated domestic subsidiaries (excluding group banks) (JPY bn） Capital contribution Net income Name Line of business ratio FY2016 YoY change FY2015 Credit guarantee Resona Ｇroup Resona Guarantee Co., Ltd. (1) 14.8 (0.5) 15.3 (Mainly mortgage lo
Slide 54: Breakdown of Financial Results for FY2016
Breakdown of Financial Results for FY2016 Resona Holdings Total of group banks Difference (Consolidated) (Non-consolidated) (JPY bn) Saitama Kinki Resona YoY YoY Resona Osaka YoY Bank (A) change (B) change Bank Bank (A)-(B) change Gross operating profit (1) 563.1 (56.4) 517.7 (54.2) 352.2 122.1 43.3
Slide 55: PL Summary and Factors for Consolidated and Total of Group Banks Difference
PL Summary and Factors for “Consolidated” and “Total of Group Banks” Difference PL Summary RHD Consolidated / Total of Group Banks Difference (RHD Consolidated / Total of Group Banks) Difference (Major consolidated subsidiaries) Total of group RHD HL guarantee Resona Resona P. T. Bank banks subsidia
Slide 56: Capital Adequacy Ratio (Group Banks)
Capital Adequacy Ratio (Group Banks) Resona Bank Saitama Resona Bank Kinki Osaka Bank (Consolidated) (Non-consolidated) (Consolidated) [A-IRB] [A-IRB] [F-IRB] Japanese Domestic Standard (JPY bn) Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, 2016 2017 2016 2017 2016 2017 Change Change Change
Slide 57: Sophistication in ALM Interest Rate Risk Management
Sophistication in ALM Interest Rate Risk Management: (Internal Model to Measure Core Liquidity Deposits) Reassess the value of liquidity deposits Methods to measure core liquidity deposits Internal model to measure core liquidity deposits Before implementation of internal model ⇒ Grasp more properly
Slide 58: Securities Portfolio
Total of Securities Portfolio Group Banks Maturity ladder of securities held (securities with contractual maturities, nominal amount basis) Mar. 31, 2017 Mar. 31, 2016 (JPY bn) One year or One to Three to Five to Seven to Over One year One to Three to Five to Seven to Over Total Total less three yea
Slide 59: Stocks Held by Industry (March 2017)
10% 15% 20% 0% 5% Fishery, agriculture and forestry Mining Construction (Balance sheet amount) Food product Textile product Pulp and paper Chemical product Pharmaceutical product Oil and petrochemical product Rubber products Glass and pottery Iron and steel Non-metal products Metal products Machiner
Slide 60: Maturity Ladder of Loan and Deposit (Domestic Operation)
Total of Maturity Ladder of Loan and Deposit (Domestic Operation) Group Banks Loans and Bills Discounted Deposits [End of March 2016] [End of March 2016] Within 6M 6 to 12M 1 to 3Y Over 3Y Total Within 6M 6 to 12M 1 to 3Y Over 3Y Total Fixed rate (1) 1.5% 1.3% 6.7% 11.7% 21.2% Liquid deposits (1) 42
Slide 61: Composition of Loan Portfolio and Deposits
Composition of Loan Portfolio and Deposits Total of (March 31, 2017) Group Banks Loans*1 Deposits*4 Fixed Rate Liquid Fixed Rate 5% deposits 19% 25% Personal Banking Corporate Corporation Bussiness Banking Liquid (JPY12.6 tn) Prime Unit Bussiness deposits 33% Rate (JPY10.6 tn) Unit*2 46% Time deposi
Slide 62: Composition of Loan Portfolio by Base Rates
Total of Composition of Loan Portfolio by Base Rates Group Banks Corporate Banking Business Unit*1,2 Fixed Prime Prime Prime Fixed Fixed Rate Rate Rate Rate Rate Rate 28% 30% 28% 27% 29% 30% [March 31, [September 30, [March 31, 2016] 2016] 2017] Market Rate*3 Market Rate*3 Market Rate*3 42% 42% 43%
Slide 63: Composition of Deposits by Types
Total of Composition of Deposits by Types Group Banks Corporate Deposits Time Time Time deposits deposits deposits 23% 22% 21% [March 31, [September 30, [March 31, 2016] 2016] 2017] Liquid deposits Liquid deposits Liquid deposits 72% 74% 75% Individual Deposits Time Time Time deposits deposits depos
Slide 64: Migrations of Borrowers (1H of FY2016)
RB Migrations of Borrowers (1H of FY2016) Exposure amount basis *1 End of September 2016 Upward Downward Other Special Effectively Migration Migration Normal Doubtful Bankrupt Other Collection, Assignments, Watch Attention Bankrupt Repayments Sale Normal 98.4% 0.8% 0.1% 0.0% 0.0% 0.0% 0.7% 0.7% 0.
Slide 65: Migrations of Borrowers (2H of FY2016)
RB Migrations of Borrowers (2H of FY2016) Exposure amount basis *1 End of March 2017 Upward Downward Other Special Effectively Migration Migration Normal Doubtful Bankrupt Other Collection, Assignments, Watch Attention Bankrupt Repayments Sale Normal 98.9% 0.6% 0.0% 0.0% 0.0% 0.0% 0.5% 0.5% 0.0% -
Slide 66: Swap Positions by Remaining Periods
RHD Swap Positions by Remaining Periods Consolidated Notional amounts of interest rate swaps (deferred hedge accounting applicable) by remaining period (JPY bn) Mar. 31, 2017 Mar. 31, 2016 Within 1 to 5 Over Within 1 to 5 Over Total Total 1 year years 5 years 1 year years 5 years Receive fixed rat
Slide 67: List of Preferred Shares and Subordinated Bonds
List of Preferred Shares and Subordinated Bonds (Jun. 30, 2017) Preferred Shares Class 5 Preferred Shares Original issue date (1) 8/28/2007 Current number of shares (2) 4,000,000 shares Issue price per share (3) JPY 25,000 Total issue amount remaining at present (4) JPY 100.0 Billion Original total
Slide 68: Responses to the Ongoing International Discussion over Further Tightening of Financial Regulation
Responses to the Ongoing International Discussion over Further Tightening of Financial Regulation Major items of financial regulation being discussed internationally For many items, international rules will be finalized hereafter and local authorities will start working on domestic rules. Major re
Slide 69: Outline of Eligible Capital under the Japanese Domestic Std.
Outline of Eligible Capital under the Japanese Domestic Std. Subordinated debts, preferred securities and non-convertible preferred shares*1 Subordinated debts and preferred securities issued under the Basel 2 can be fully included in Core Capital as of the end of March 2014. These grandfatherin
Slide 70: BOJ Current Account Balances
BOJ Current Account Balances Monthly average balance of BOJ current account (16 May -15 June) Total of institutions subject to the complementary City banks including deposit facility Resona Bank and Saitama Resona Bank JPY338.8 tn JPY130.1 tn The outstanding balance of current account at the Bank JP
Slide 71: Long Term Business Results
Long Term Business Results (JPY bn) FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Gross operating profit 901.8 775.0 763.1 768.6 805.2 769.3 739.5 678.3 667.0 655.2 637.1 608.5 632.4 619.5 563.1 Net interest income 599.1 561.2 542.3 549.8 56
Slide 72: Trend of Long-term Senior Debt Rating
RB Trend of Long-term Senior Debt Rating S&P Moody's R&I 2003 2004 2005 2006 2007 2011 2017 JCR A1 A+ R&I JCR S&P A2 A Moody' A3 A- Baa1 BBB+ Baa2 BBB Baa3 BBB- Ba1 BB+ 71
Slide 73: Composition of Resona HD's Common Shareholders
Composition of Resona HD’s Common Shareholders 2.26% 5.03% 3.96% 3.93% Other 8.96% 6.08% 6.09% 5.80% Corporations 20.01% 2 0 .01% 20.01% 6.35% 15.48% 13.51% Individuals, etc. 15.68% 41.95% DIC 5.83% 4.34% 4.58% 16.51% 50.11% 7.39% 6.84% 6.50% Financial 22.23% 19.72% 27.92% 31.29% 34.17% institutions
Slide 74: Reference Material: Macro Economic Trend
Reference Material Macro Economic Trend 73
Slide 75: Actual and Forecast of Real GDP Growth Rate
Actual and Forecast of Real GDP Growth Rate GDP Components*1 *2 *2 (JPY tn) Private Consumpton Private Investment Public Demand Net Exports 550 130.2 450 350 97.7 250 150 297.8 50 (1.4) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q (50
Slide 76: Overall Economy in Japan (1)
10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 2002 Jan. - Mar. 2003 Jan. - Mar. 2004 Jan. - Mar. 2005 Jan. - Mar. 2006 Jan. - Mar. 2007 Jan. - Mar. 2008 Jan. - Mar. 2009 Jan. - Mar. 2010 Jan. - Mar. 2011 Jan. - Mar. 2012 Jun. - Mar. at 10M-100M(Y)》 2013 Jan. - Mar. 《Companies capitalized 2014 Jan. - Mar. 2
Slide 77: Overall Economy in Japan (2)
Overall Economy in Japan (2) Enterprise Bankruptcy*1 (JPY bn) Total Debt (Construction/Real Estate Industries) (Number of cases) Total Debt (other) 1,500 2,500 Number of Bankrupt Case (right case) 2,000 1,300 1,500 1,100 1,000 900 500 700 0 500 '08/3 '08/9* '09/3 '09/9 '10/3 '10/9 '11/3 '11/9 '12/3
Slide 78: Employment
Employment Active job openings-to-applicants ratio*1 Wage / Salary*2 (times) (JPY thousand) 1.4 1.2 300 1.0 0.8 200 0.6 0.4 100 0.2 0.0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 '07/1 '08/1 '09/1 '10/1 '11/1 '12/1 '13/1 '14/1 '15/1 '16/1 '17/1 *1. Source:
Slide 79: Exchange Rate / Corporate Earnings
Exchange Rate / Corporate Earnings Exchange Rate(USD / JPY)*1 Ordinary Profit for Japanese Corporations*2 (JPY) (JPY tn) 125 70 120 60 115 110 50 105 40 100 30 95 90 20 85 10 80 75 0 2003/1/6 2003/6/2 2006/4/6 2009/7/9 2011/3/1 2013/8/6 2014/1/6 2014/6/3 2003/10/24 2007/11/16 2011/12/21 2012/10/11 2
Slide 80: Aging of Japan's Population
Aging of Japan’s Population (Population Trends by Age / Actuals and Estimates)*1 Population Trends by Age Groups (mn individuals) 140 Actual Prospect 75 and above 120 65 to 74 under 65 100 80 60 40 20 0 *1. Source: National Institute of Population and Social Security Research 79
Slide 81: Sales of Investment Trusts and Insurance
Sales of Investment Trusts and Insurance Total Net Assets of Investment Trusts Ratio of Life Insurance Policy Holders by Distribution Channel*1 by Distribution Channel in Last 5 years*2 45.6% Securities Banks (JPY tn) 80 Direct sale Share of Banks (Ratio of bank) (right scale) 70 40% 60 30% 50 40 18
Slide 82: Housing Data
Housing Data New Housing Construction Starts*1 (10 thousands units) Houses for lent Own houses, condominiums, etc 129 104 104 54 99 97 89 92 88 82 84 43 44 78 37 32 38 43 29 29 36 31 75 60 59 55 57 62 53 52 54 55 46 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 *1. Source: Ministry of Land,
Slide 83: Our Website Information
Our Website Information http://www.resona-gr.co.jp/holdings/english/ Materials for investors are available from here Official You Tube (in Japanese language) http://www.youtube.com/user/ResonaGroup Official Facebook account Official Twitter account (in Japanese language) (in Japanese language ) ht
Slide 84: Proactively Communicating with Our Shareholders and Investors
Proactively Communicating with Our Shareholders and Investors Publication of Integrated Report 2016 of Resona Group http://www.resona-gr.co.jp/holdings/english/investors/financial/integrated/index.html Integrated Report explains in a simple manner to all stakeholders the Resona Group’s strengths and
Slide 85: Forward-looking statements
The forward-looking statements contained in this presentation may be subject to material change due to the following factors. These factors may include changes in the level of stock price in Japan, any development and change related to the government’s policies, laws, business practices and their in