Nanto Bank Ltd.TSE: 8367

Cultivating “Unconventional” Human Resources

· Issued by Nanto Bank Ltd.
Officer in Charge, Personnel Department Director, Managing Executive Officer
Haruyuki Kakutani

Practicing Sustainable Management

Cultivating "Unconventional" Human Resources

A corporate group that encourages its staff to maximize their abilities and value

To realize sustainable management that grows with the community, the Nanto Bank Group must deploy its management capital to address and resolve issues facing its customers, the community, and society as a whole.

The Group's most precious management capital is its human resources. As the needs and values of our customers continue to diversify, we seek to become an organization with employees who are prepared to solve the problems of the community and our customers. This means an organization that is brimming with unconventional human resources who possess both the diverse skills and experience, inside and outside the financial sector, and the ability to create new value independently.

In June 2024, the Bank went a step further in its efforts to create and develop unconventional human resources through provision of growth opportunities and diversification of human resources by soliciting examples of initiatives worthy of unconventional human resources from our employees, with awards presented to those who submitted the best examples. The idea was to create a cycle of creation,

penetration, and retention of unconventional human resources among all our Group employees to encourage them to think more deeply about the meaning of unconventional human resources.

We also revised the personnel system to support employees' autonomous career development and willingness to take up challenges by creating an environment in which every employee, regardless of age or gender, can feel "job satisfaction" and maximize their abilities.

Under the resulting new personnel system, we have introduced a system of evaluating the advanced skills, diverse values, and experience of unconventional personnel as part of our efforts to develop a corporate culture that creates unconventional human resources.

In conjunction with the revision of our personnel systems, we introduced "Exceeding expectations" as a core value for human resources, and clarified once again the image of human resources that the Nanto Bank Group seeks. We will encourage our employees to act in continual awareness of five keywords: "proactivity," "challenge," "creativity," "discoverability," and, as the foundation for all of them, "integrity."

As we go forward, we hope to create a Bank brimming with unconventional human resources by encouraging all our employees to act proactively in everything they do, always keeping in mind the need to exceed the expectations of our customers and colleagues.

Nanto Bank Group's human capital management initiatives

Human resources are the Group's most important management capital, and it is essential that we secure and develop skilled, highly qualified human resources to realize our Management Plan. We are working to diversify our human resources by providing opportunities for growth through increased external secondments, trainee dispatches, and exchanges among our Group companies, as well as through a sideline system and expanded career recruitment. With the ongoing diversification of customer needs and values as well as of community issues, meanwhile, we are seeking to create an organization brimming with unconventional human resources by cultivating employees who can support the sustainable growth of our customers and communities by equipping them with various skills and experiences extending beyond the framework of finance.

Unconventional human resources creation cycle

Competencies

Evaluations to

New graduate

required of staff

optimize use of

and career

human resources

recruitment

Philosophy sharing

Ability to engage in management decision-making with customers

Business planning capability

Ability to innovate

Human

Unconventional

Career

resources

Diversification of

human resources

development

creation cycle

and training

human resources

Skill development and growth

opportunity enhancement

Positive working

environment

Recognition for initiatives worthy of unconventional human resources

In its efforts to establish a cycle of creation, penetration, and retention of unconventional human resources, the Bank publicly solicited examples of initiatives worthy of unconventional human resources from all the Group's employees and presented awards for the best examples. (Initiative from April 2020 to March 2024)

28 Nanto Report 2024, the integrated report of Nanto Bank

About Nanto Bank

Nanto Group Corporate

Practicing Sustainable

Local Market

Strengthening

Control of Net Assets

Governance

Consolidated Financial

Value Enhancement

Management

Revitalization

Profitability

Statements

Business

Strategies

Performance

model

and resources

allocation

New graduate/career recruitment Recruitment of human resources who share our Group's Philosophy

Nanto Bank is committed to developing a working environment that adequately rewards employees with a passion for community development and willingness to improve their capability and value. We seek to imbue our personnel with our Management Philosophy and Vision, and to encourage them to play active roles in our various Group companies.

At the same time, we envision a reduction in employee workloads and a natural decrease in our employment rolls as we expand the application of digital technologies and other new approaches. This makes it especially important for every individual staff member to achieve a high performance level, and for all our Group companies to shift their human resources to high value-added operations by adopting the so-called "smart work" style and digital technologies to improve their operating efficiency and productivity.

Responding to demand for further improved knowledge and skills in various business areas, we are working to strengthen our recruitment of new graduates and career professionals as well as conducting Group-wide human resources development and personnel exchanges.

New graduate recruitment

All our Group employees are growing toward their goals and participating actively in a variety of fields.

Number of new graduates hired

Female

Male

123

130 (Persons)

95

70

80

60

35

43

60

2022

2023

2024 (Fiscal year)

Recruiting more mid-career hires

We are strengthening recruitment for mid-career positions through the use of both recruitment agencies and direct recruiting and by increasing the number of open positions. Efforts to revitalize our organization include hiring promising personnel with advanced expertise and an ability to make an immediate impact in the sales arena.

Number of mid-career hires

(Persons)

Previous jobs

Number

10

7

Regional banks

3

Financial firms

3

3

General companies

1

2021

2022

2023 (Fiscal year)

Career development and training Helping employees improve their skills and build on their experience to provide added value to customers

Training program

Purpose

Joint career training

Considering personal career plans through exchanges with female executives

of other banks

with other banks

Cultivating awareness of the need for management positions

Women's

Understanding the basic concept of a career, and considering a personal

career plan

career training

Cultivating awareness of potential for management positions

Joint training with

Expanding horizons and forming personal networks outside the Bank through

exchanges with employees of other organizations

other companies

Fostering an awareness of leadership

[FY2023]

Total hours of training

Number of trainees

Training expenses

35,929

4,229

64,791 thousand yen

We support autonomous career development by offering various types of training to foster awareness.

Developing growth opportunities

Main

Increased number of secondments

Dispatching trainees

initiatives

Exchanges among Group companies

We promote the growth of young employees by dispatching them to external companies/institutions where they can acquire management literacy and other skills.

We also actively promote secondments within the Group to provide opportunities for acquiring specialized skills.

Personnel seconded to other organizations

Exchanges among Group companies (4)

in their forties (3)

(1 to a local company, 2 to a regional government)

(Seconded full-time directors, 4)

Trainees dispatched (11)

Support for acquisition of qualifications

Main

that contribute to problem-solving

initiatives

Training to strengthen logical thinking

skills, joint training with other companies

We encourage the acquisition of qualifications that contribute to problem-solving through the provision of learning opportunities such as preparatory courses to help employees acquire specialized knowledge to respond to customers' diverse values (varied needs).

We offer a variety of training programs to help employees improve their thinking skills, acquire new perspectives through exposure to diverse cultures and values, and expand their horizons.

(7 domestically, 4 overseas)

(End March 2024)

29

Practicing Sustainable Management

Cultivating "Unconventional" Human Resources

Friendly work environment Initiatives to improve work styles and retain staff

Full realization of a variety of leave programs

Since April 2024, we have been fully implementing planned leaves and summer and winter vacations, including consecutive leaves, which have been doubled from one to two periods of seven consecutive days a year. We are also creating a culture that encourages full use of various types of leave, including male maternity leave and family support leave.

Expansion of childcare support systems

We are expanding various childcare support systems to make it easier for employees to seek career advancement while balancing work and child-rearing.

Paternity leave system Expanded family support leave system

Fertility treatment leave system Expanded child nursing care leave system Expanded period during which employees can benefit from childcare support programs such as shorter working hours

Percentage of women in management positions (above the rank of section chief)

Percentage of male employees taking childcare leave or family support leave (5 days or longer)

20.0

(%)

16.0

14.3

14.8

Target for 2027: 20%

55.8

47.4

(%)

2021

2022

2023

2027 (Fiscal year)

2022

2023 (Fiscal year)

Diversification of human resources Responding to increasingly complex and varied customer issues by increasing the number of staff with diverse values

Promoting gender equality and other diversity initiatives

Nanto Bank is working to raise awareness and develop systems that enable a diverse range of human resources, including women, to play an active role.

We are pursuing initiatives to achieve a balance of work with childcare, including the introduction of paternity leaves.

Employment of personnel with disabilities

In August 2018, Nanto Bank established Nanto Challenged Co., Ltd. as a wholly owned subsidiary committed to promoting employment of people with disabilities by creating environments in which they can enjoy safe, rewarding work experiences.

In February 2019, the new company was certified as a special-purpose subsidiary.

Promoting a system for side business activities

Acting from a belief that diverse experience, advanced expertise and skills, personal connections, and networks acquired through side-business activities conducted in addition to employees' banking responsibilities are indispensable, we have established an environment that allows employees to engage in side jobs.

Eligible side jobs Qualification-related: Lecturing, translation, interpreting, consulting, etc.

Internet-related: Web design, programming, YouTuber, etc.

Others: Sales of handcrafted products (ornaments, paintings, etc.), musical activities, etc.

Participants in the side job program

25 (Persons)

19

2022

2023 (Fiscal year)

Evaluations to make the most of human resources Accept and evaluate staff with viewpoints and ideas different from your own

Centralization of human resources information

Deployment of a talent management system

We have introduced a talent management system for purposes of centralizing the consolidation, accumulation, and visualization of personnel data and implementing strategic personnel policies (recruitment, training, assignment, and promotion) based on the data.

The system assesses the qualifications, experience, and abilities of employees comprehensively, and optimizes our deployment of human resources by assigning the right personnel to the right positions.

Current

Personnel information system

MS Excel, MS Word

Paper-based

situation

Basic information

Work experience

Branch inspection reports

Personnel management information

Personnel appraisal

Transfer history

Goal-setting

Recruitment entry sheet, resume

Independent management / collection (inefficient)

After

introduction

Aptitude

Talent management system

Questionnaire

test

Basic information

Work experience

information

Personnel appraisal

Transfer history

Other

1-on-1

Branch inspection reports

Personnel management information

Goal-setting

Recruitment entry sheet, resume

qualitative

information

information

Centralized management + efficient new information collection system

Recipients of the Award for Examples of Efforts Worthy of Unconventional Human Resources

Kashiba Branch

Keiko Ueda

My motivation for starting a side business was my desire to energize working people and to help them lead fulfilling lives through work. I thought conducting training programs would be an effective way of developing human resources and transmitting knowledge about finance to working people. I had no experience as a training instructor, so I took recurrent education courses at a university and participated in exchange meetings with managers from other industries to acquire the requisite skills. I then worked with the president of a local company to create training programs, and we succeeded in enrolling large numbers of trainees in the programs concerned with human resources development and finance.

I received positive feedback from the participants, who said such things as, "I learned about organizational management in depth," or, "I learned why investment is necessary to protect money." These responses gave me confidence in my ability to help people manage their organizations and design their life plans. I expect to continue to apply this experience in my primary business.

Besides contributing to human resources development and organizational revitalization at the participating companies, the program contributed to improving financial literacy in the region.

As a sideline, she planned and conducted human resources development training on her own initiative at local SMEs. This involved holding financial seminars and contributing to improved financial literacy among employees of SMEs, while at the same time contributing to her core business by promoting NISA.

30 Nanto Report 2024, the integrated report of Nanto Bank

About Nanto Bank

Nanto Group Corporate

Practicing Sustainable

Local Market

Strengthening

Control of Net Assets

Governance

Consolidated Financial

Value Enhancement

Management

Revitalization

Profitability

Statements

Business

Strategies

Performance

model

and resources

allocation

2024 Revision of the personnel system

Personnel system revision

(Main revisions)

Wage increase

(Main details of the wage revision)

Course

Integration of career-track and specified

classification

positions

and promotion

Elimination of minimum tenure

Establishment of a new career challenge

Career paths

system that lets employees apply for jobs they

and workstyles

want to experience.

Introduction of a flextime system

Increase in child allowance from 20,000 yen to

Benefits and

30,000 yen per child

welfare

Introduction of a new refreshment leave and

paid leave accumulation system

Starting salary

Salaries and bonuses

Part-time employees

Increase from 230,000 yen to 260,000 yen for university graduates

Average increase of 8.5% for all the Bank's employees

Salaries for employees under 30 years old: Increase of 14.5% on average

Increase of 13.3% on average

Reflections on the past four years

Fiscal 2020

Fiscal 2021

Fiscal 2022

Fiscal 2023

Establishment of an Unconventional Human

Expansion of career recruitment

Introduction of a talent management system

Consideration of personnel

Resources Development Office

Introduction of a sideline employment system

Active participation in inter-company training

system revision

Conducting Group discussions to foster

Creation of secondment opportunities for

programs

Public solicitation of initiatives worthy

awareness of issues

young employees

of unconventional human resources

Support for acquisition of qualifications that

Increased exchanges among Group

Establishment of male maternity

can contribute to problem-solving

companies

leave and infertility treatment leave

Expansion of trainee dispatching

Training to strengthen logical thinking skills

systems

Increase in wages (beginning and

regular salary)

Number of participants in training programs (Persons) designed to enhance logical thinking skills (Total)

Number of personnel with qualifications

(Persons)

Number of initiatives worthy of unconventional

related to vitality creation

human resources

456

295

160

55

2020

2021

2022

2023 (Fiscal year)

693

559

601

458

2020

2021

2022

2023 (Fiscal year)

Fiscal Year 2023

12

I am motivated by a desire to serve and please our customers in an "all-Nanto" way, making the most of the Bank's

resources, and to become the first person they think of when problems arise.

When I was assigned to my current branch and entrusted with corporate clients for the first time, I consulted

with my supervisor and senior staff on what I needed to do to gain the trust of business owners. I began by

studying the business models of our clients and the industries in which they operate. As I continued to engage

in dialogue with managers based on my personal hypotheses and issues, I was asked for ideas on creating an

environment in which women can work comfortably. I was pleased to hear such comments as, "No other bank is

so considerate of the company," or "I haven't told anyone yet, but I need to discuss this with you." I don't believe

Yao Branch

this was a result of my efforts alone, but rather the fruit of Group-wide efforts we conducted in cooperation with

others around us.

Azusa Kato

Contributing to improved ES (employee satisfaction) among client companies with our own ideas

In addition to proposing a management philosophy and measures to disseminate it to small and medium-sized companies, we proposed and introduced infertility treatment leave, child nursing leave, and other measures. We even exceeded the scope of our responsibility in such ways as proposing solutions to issues faced by cosmetics manufacturers.

Nanto Report 2024, the integrated report of Nanto Bank 31