Yokohama Financial Group, Inc. · TSE:7186
Yokohama Financial — Concordia Financial Group — Investor Presentation (April 2016)
31 slides from Yokohama Financial's investor presentation, Apr 1, 2016
Slide 1: Foundation of Concordia Financial Group, Ltd. and Formulation of Medium-term Management Plan
Foundation of Concordia Financial Group, Ltd. and Formulation of Medium-term Management Plan April 1, 2016 CONCORDIA Financial Group Bank of Yokohama - Higashi-Nippon Bank April 1, 2016 Company Name: Concordia Financial Group, Ltd. Representative: Representative Director, President Tatsumaro Terazaw
Slide 2: Table of Contents
Table of Contents I Foundation of Concordia Financial Group, Ltd. 1. Group's management philosophy o visions, P3 2. Group's operation o management structure, P4 3. Overview of group companies, P5 II Medium-term Management Plan of Concordia Financial Group, Ltd. 1. Rationale and positioning of medium
Slide 3: I Foundation of Concordia Financial Group, Ltd.
I Foundation of Concordia Financial Group, Ltd. CONCORDIA Financial Group Bank of Yokohama - Higashi-Nippon Bank 3 Concordia Financial Group, Ltd. Medium-term Management Plan Copyright 2016 Concordia Financial Group, Ltd. All Rights Reserved.
Slide 4: Group's Management Philosophy and Visions
1. Group's Management Philosophy and Visions Corporate name Concordia Financial Group, Ltd. Concordia Financial Group, Ltd. First Section of Tokyo Stock Exchange Securities code 7186 Management philosophy Aiming to contribute to creating a vibrant future as a trusted financial group and to enhance i
Slide 5: Group's Operation and Management Structure
2. Group's Operation o Management Structure Build an operation o management structure as a regional financial platform where the two banks can fully utilize their strengths as regional financial institutions in their respective home market Group's operation o management structure Holding Company (HD
Slide 6: Overview of Group Companies
3. Overview of Group Companies Key metrics for the two banks Yokohama Higashi-Nippon Total of the two banks Loan balance (non-consolidated) 10,036.2 1,626.3 11,662.5 Deposit balance (non-consolidated) 12,125.2 1,891.5 14,016.7 Net assets (consolidated) 1,017.4 117.7 1,135.1 Total assets (consolidate
Slide 7: II Medium-term Management Plan of Concordia Financial Group, Ltd.
II Medium-term Management Plan of Concordia Financial Group, Ltd. "One Heart for You ^ 1st Stage ^" CONCORDIA Financial Group 7 Concordia Financial Group, Ltd. Medium-term Management Plan Copyright 2016 Concordia Financial Group, Ltd. All Rights Reserved.
Slide 8: Rationale and Positioning of Medium-term Management Plan
1. Rationale and Positioning of Medium-term Management Plan To consequently achieve the group's management philosophy and long-term visions, the medium-term management plan is positioned as a 3-year phase in which the group enhances and deepens relationships with customers by adapting promptly to ch
Slide 9: Overview of Medium-term Management Plan
2. Overview of Medium-term Management Plan Name One Heart for You ^ 1st Stage ^ Period April 2016 - March 2019 Positioning A 3-year phase in which the group enhances and deepens relationships with customers by adapting promptly to changing financial environment and putting efforts in efficiency impr
Slide 10: Fundamental Strategy (1): Enhance customer interactions and widen services scope
3. Fundamental Strategies - Formulate a trusted and preferred group by customers as contributing to growth of communities (1) Enhance customer interactions and widen services scope (i) Enhance o deepen relationships with customers through both face-to-face and non-face-to-face interactions o Tap the
Slide 11: Enhance and deepen relationships with customers
3. Fundamental Strategies (1) (i) Enhance o deepen relationships with customers through both face-to-face and non-face-to-face interactions Tap the potential needs of customers and further enhance transactions with customers by both building an organizational structure whereby the group can precisel
Slide 12: Improve customer convenience with branch network and FinTech
3. Fundamental Strategies (1) (i) Enhance o deepen relationships with customers through both face-to-face and non-face-to-face interactions Significantly improve customer convenience by combining the two banks' extensive branch network and FinTech Increase sales branches / offices Add new access poi
Slide 13: Strengthen support to corporate customers
3. Fundamental Strategies (1) (ii) Further strengthen support to corporate customers in solving their issues and increasing their enterprise value Provide services tailored to each growth phase of customers and help customers increase their enterprise value by focusing on business feasibility assess
Slide 14: Reinforce overseas business support
China India Thailand Philippines Vietnam Malaysia Singapore (Note 2) Loans overseas include loans extended by Shanghai Branch, loans for non-residents, standby LC, and parent-subsidiary loans By FY2015 After April 2016 Customers' expansion into Asia and the Group's Support Structure Initiatives to r
Slide 15: Provide financial services incorporating progressing ICT
3. Fundamental Strategies (1) (iii) Provide financial services while strategically incorporating the progressing ICT Improve customer convenience and set up new financial services that contribute to communities by combining ICT, FinTech and big data Changing external environment Revolutionary change
Slide 16: Realize group synergies: strengths of both banks
3. Fundamental Strategies (2) Realize group synergies as early as possible to accelerate growth - strengths of both banks and synergies from management integration Provide all kinds of services to a broad range of customers, including individuals and SMEs, by leveraging the strengths of the two bank
Slide 17: Realize group synergies: synergetic effect
3. Fundamental Strategies (2) Realize group synergies as early as possible to accelerate growth - synergetic effect Implement the initiatives for creating synergies, announced upon conclusion of the definitive agreement. Expand the transaction base by sharing and streamlining operations, systems and
Slide 18: Synergies Expected during Medium-term Management Plan Period
(Reference) Synergies Expected during Medium-term Management Plan Period 3rd year (FY2018) (Reference) 5th year (FY2020) Channel development New openings Open new branches in high-growth areas of Tokyo A total of about 15 branches (including 4 joint branches) A total of about 20 branches (including
Slide 19: Higher sophistication of investment decisions
3. Fundamental Strategies (2) Realize group synergies as early as possible to accelerate growth - higher sophistication of investment decisions Secure stable revenues by strengthening collaborations between the group companies and optimizing the portfolio in a timely manner based on risk/return anal
Slide 20: Taking advantage of industry deregulation
3. Fundamental Strategies (2) Realize group synergies as early as possible to accelerate growth - taking advantage of industry deregulation Shift to an organizational structure whereby the subsidiary banks can focus on their own business operations, consider establishing a new operating company and
Slide 21: Nurture human resources and promote diversity
3. Fundamental Strategies (3) Nurture human resources with broad expertise and promote diversity Group companies collaborate in educating personnel who can flexibly meet customers' needs and changing environment, promote diversity and provide sophisticated consulting and solutions Human resource (1)
Slide 22: Proactively get involved in regional issues
3. Fundamental Strategies (4) Proactively get involved in regional issues, including regional revitalization Support the implementation of comprehensive strategies by taking initiatives to attract tourists as well as serving as a coordinator between each region and the public/private sector in order
Slide 23: Group's Capital Policy
4. Group's Capital Policy Maintain a healthy capital adequacy ratio under the environment of current regulatory trend and flexibly utilize capital and implement shareholder returns to realize optimum capital efficiency Basic capital policy Flexible utilization of capital and implementation of shareh
Slide 24: Financial Targets
5. Financial Targets Sum of the two banks (non-consolidated) FY2014 actual Bank of Yokohama Higashi-Nippon Bank Gross operating income 236.3 204.4 31.8 Expenses(-) 123.6 100.4 23.2 Core net business profit 112.7 104.0 8.6 Credit costs (-) 3.4 0.7 2.6 Gains or losses on stocks and other securities 8.
Slide 25: Initiatives by Bank of Yokohama
(Reference) Initiatives by Bank of Yokohama Basic policies Share know-how with Higashi-Nippon Bank to realize synergies from the management integration as early as possible Aim to become a bank serving both the communities and customers, with a focus on Kanagawa Prefecture, the major sales activity
Slide 26: Operational Targets for Bank of Yokohama
Operational Targets for Bank of Yokohama Number of main individual customers (million people) 2.60 2.50 2.40 2.30 2.20 2.30 2.35 2.43 2.50 Mar-2014 Mar-2015 Mar-2016 Mar-2019 (Plan) (FY end) Average loan balance to high-net-worth individuals (JPY bn) 2,900.0 2,700.0 2,500.0 2,300.0 2,100.0 1,900.0 1
Slide 27: Initiatives by Higashi-Nippon Bank
(Reference) Initiatives by Higashi-Nippon Bank Basic policies Drive loans and increase earnings through the face-to-face sales activities focused on relationships with customers and the risk-taking capabilities expansion on the back of synergies from the management integration Further concentrate ma
Slide 28: Operational Targets for Higashi-Nippon Bank
Operational Targets for Higashi-Nippon Bank Deposit to loan ratio (average) 100.0% 95.0% 90.0% 85.0% 80.0% 75.0% 70.0% 82.1% 82.6% 85% 90% 2013 2014 2015 (Forecast) 2018 (Plan) (FY) Balance of SME loans (JPY bn) *Excluding the balance of "apartment loans" 1,500.0 1,000.0 500.0 0.0 811.0 899.9 980.0
Slide 29: Collaborative Initiatives Currently In Place
(Reference) Collaborative Initiatives Currently In Place Classification Initiatives Progress Individuals Introduction of the customers of Higashi-Nippon Bank to Hamagin Tokai Tokyo Securities with a fee charged Launched operation in October 2015 Holding of joint seminars Held seminars on tax reform
Slide 30: Concordia Financial Group
Concordia Financial Group This document may not be reproduced or distributed to any third party without prior written consent of The Bank of Yokohama, Ltd. This document has been prepared for information purposes only and does not form part of a solicitation to sell or purchase any securities. Infor
Slide 31: SCS
SCS CONCORDIA Finaneial Group This document may not be reproduced or distributed to any third party without prior written consent of The Bank of Yokohama, Ltd. This document has been prepared for information purposes only and does not form part of a solicitation to sell or purchase any securities. I
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