The Yamanashi Chuo Bank, Ltd. The 31st Analyst Meeting

・Fiscal 2016 First Half Business Results ・Forecasts for the Current Term (FY2016) ・Medium-Term Management Plan “S.T.E.P. up 2019” Progress Report

December 7, 2016 (Wed)

－ 0 － Contents

Profile ２ Ⅲ Medium-Term Management Plan I Fiscal 2016 First Half Business Results and ”S.T.E.P. up 2019” Progress Report Forecasts for the Current Term (FY2016) Medium-Term Management Plan ”S.T.E.P. up 2019” ４ Fiscal 2016 First Half Business Results (Summary) Diagram of ”S.T.E.P. up 2019” ２３ ５ Earnings Forecasts for the Current Term (FY2016) Basic Strategies and Financial Targets of Deposits ６ iiiMedium-Term Management Plan ”S.T.E.P. up 2019” ２４ Loans ７ Individual Strategies Based on Basic Strategy I ２５ Securities ９ Strengthen retail solution banking ２５ Fees and Commissions １１ Strengthen corporate solution banking ２６ Operating Expenses and OHR １２ Strengthen coordination with industrial, government, and academic funds ２８ Credit Cost １３ Individual Strategies Based on Basic Strategy II ３１ Yields & Interest Margins １４ Optimal distribution of management resources, Capital Ratio (Non-Consolidated Basis) １５ Advanced IT utilization, Fundamental operational reforms ３１ Return to Shareholders １６ Western Bloc Strategy ３２

II Economic Trends in Business Trends １８ Yamanashi Prefecture Economic Topics １９ Local Industries in Yamanashi Prefecture ２０ Preparations for High-Speed Transportation Network ２１ － 1 － Profile

■ Profile (as of September 30, 2016)

・ Predecessor Founded: April 1877 ・ Established: December 1941 ・ Head Office: 20-8, Marunouchi 1-Chome, Kofu, Yamanashi ・ Common Stock: ¥15,400 million ・ Employees: 1,724 ・ Branches (including sub-branches): 91 (74 in Yamanashi Pref., 16 in Tokyo, 1 in Kanagawa Pref.), Representative Office: 1 (Hong Kong)

Head Office

Our Mission Region-Based Operations and Sound Management

Maintaining a close relationship with the communities in the region where we operate, we will contribute to the prosperity of the region and the development of its economy, with a commitment to sound management that enjoys the trust of our customers, while bolstering our business operations.

－ 2 － Ⅰ Fiscal 2016 First Half Business Results and Forecasts for the Current Term (FY2016)

－ 3 － Fiscal 2016 First Half Business Results (Summary)

Previous Reporting Reporting (¥ billion, %) YoY change [%] 1st half 1st half 1st half (analysisdifference factors) of (¥ billion, %) YoY change [%] Balance Yield (FY16) Operating income 26.9 26.2 (0.7)( (2.6) ) Fund Operations 17.4 (0.3) ( (2.0) ) 0.1 (0.5)

Gross banking profit Interest income 19.1 21.4 2.3( 12.1 ) Interest on loans 8.4 (0.6) ( (7.4) ) 0.2 (0.9) Interest income 16.9 16.5 (0.3)( (2.3) ) Interest on securities 8.8 0.3 ( 3.6 ) (0.7) 1.0

Fees and commissions 2.2 2.0 (0.2)( (12.0) ) Call loan, etc. 0.1 0.0 ( 0.0 ) 0.1 (0.1) Other operating income (0.0) (0.8) (0.7)( (1,023.0)) Fund procurement 0.9 0.0 ( 2.5 ) 0.0 0.0 Gross banking prof it on core operations 19.1 17.6 (1.4)( (7.6) ) Interest on deposits 0.5 (0.2) ( (27.2) ) 0.0 (0.2) Interest income JGBs and other bond transactions 0.0 3.8 3.7( 13,542.8 ) Call money, etc. 0.3 0.2 ( 218.3 ) 0.0 0.1 16.5 (0.3) ( (2.3) ) ― ― Expenses 14.0 13.7 (0.3)( (2.3) )

General provision to loan loss reserve ---( - ) Reporting 1st half (FY16) YoY change

Fees and commissionsFees and (¥ billion) Net business profit 5.0 7.7 2.6( 52.5 ) Revenues 3.5 0.0 Net business profit on core operations 5.0 3.8 (1.1)( (22.5) ) Investment trusts 0.3 (0.1) 4.4 (0.5) (5.0)( (111.6) ) JGBs held by individuals 0.0 (0.0) Gains on rev ersal of provision to loan ( ) Non-operatingloss reservelosses 0.3 0.0 (0.3) (94.8) Life insurance 0.4 0.1 Reversal of loan loss reserve 0.0 0.0 (0.0)( (8.3) ) Others 2.7 0.1 Equity share and similar transactions 4.0 0.9 (3.0)( (75.4) ) Cost 1.5 0.3 9.5 7.1 (2.3)( (24.5) ) Fees and commissions 2.0 (0.2) Ordinary profits (0.1) (0.0) 0.1( 78.6 ) Reporting Extraordinary income (losses) (¥ billion) 1st half (FY16) YoY change 9.3 7.1 (2.1)( (23.4) ) Expenses Income before income taxes Personnel 7.8 0.1 2.5 2.0 (0.4)( (19.5) ) Income taxes - basic Premises and equipment 5.0 (0.4) Income taxes - deferred 0.3 0.0 (0.2)( (80.2) ) Taxes 0.8 (0.0) Net income 6.5 5.0 (1.4)( (22.1) ) Expenses 13.7 (0.3) － 4 － Earnings Forecasts for the Current Term (FY 2016)

FY16 FY16

(¥ billion, %) FY15 YoY change [%] (analysisdifference factors) of (forecast) (¥ billion, %)(forecast) YoY change [%]Balance Yeild Fund operations Operating income 50.9 46.4 (4.5) ( (8.8) ) 33.5 (2.5) ( (7.1) ) 0.3 (2.9) Interest income Gross banking profit 38.6 38.3 (0.3) ( (0.8) ) Interest on loans 16.7 (1.3) ( (7.4) ) 0.3 (1.6) Interest on Interest income 34.2 31.8 (2.3) ( (6.9) ) securities 16.5 (1.1) ( (6.6) ) (1.6) 0.5 Fees and commisions 4.5 4.6 0.0 ( 1.1 ) Call loan, etc. 0.2 (0.0) ( (14.5) ) 0.2 (0.2) Other operating income (0.6) (1.9) (1.2) ( (192.9) ) Fund procurement 1.6 (0.1) ( (9.2) ) 0.0 (0.1) Interest on Gross banking profit on Interest income 0.9 (0.5) ( (36.2) ) 0.0 (0.5) deposits core operations 38.1 34.5 (3.6) ( (9.4) ) Call money, etc. 0.7 0.3 ( 118.4 ) 0.1 0.2 JGBs and other bond 0.5 3.8 3.2 ( 603.4 ) transactions 31.8 (2.3) ( (6.9) ) ― ― Expenses 27.9 27.1 (0.7) ( (2.7) ) General provision to loan FY16 loss reserve 1.6 (0.2) (1.8) ( (112.9) ) commissionsFees and (¥ billion） (forecast) YoY change Net business profit 9.1 11.4 2.2 ( 24.8 ) Revenues 7.3 0.3 Net business profit on core Investment trusts 0.9 0.0 operations 10.2 7.4 (2.8) ( (27.5) ) JGBs for individual 0.0 0.0 Non-operating losses 3.7 (1.6) (5.3) ( (143.0) ) investors Life insurance 0.8 0.1 NPL disposal amount 0.0 0.6 0.5 ( 634.8 ) Others 5.6 0.2 Equity share and similar transactions 5.2 0.9 (4.2) ( (81.1) ) Cost 2.7 0.3 Ordinary profits 12.8 9.8 (3.0) ( (23.8) ) Fees and commissions 4.6 0.0 Net income 8.7 6.9 (1.8) ( (21.0) ) FY16 (¥ billion) (forecast)YoY change Expenses Dividends Personnel 15.5 0.3 FY14 FY15 FY16 (plan) Premises and equipment 10.2 (1.0) Dividend per share (annual) ¥7.00 ¥10.00 ¥9.00 Taxes 1.3 (0.0) Exprenses End of FY15 End of FY16 (estimate) 27.1 (0.7) Nikkei Stock Average ¥16,758 ¥16,449 － 5 － Deposits

Deposit (average balance) Balance by Customer Segment (average balance) 3,000 +7.6 (¥ billion) (¥ billion) 2,856.1 Total （+0.26%） 2,813.2 2,848.4 2,834.2 2,849.3 2,500 2,717.8 3,000 2,856.1 2,849.3 Total 243.4 255.1 239.3 227.7 216.1 Local 2,813.2 2,848.4 2,834.2 236.3 government 2,717.8 70.5 74.4 Tokyo Bloc bodies 78.6 68.3 73.7 2,000 562.1 557.6 558.1 587.1 583.7 540.1 82.1 264.8 270.3 267.8 264.0 263.7 Western Corporate customers 2,500 252.0 Tokyo Bloc 1,500

Gunnai 448.9 447.5 454.0 453.4 1,000 439.4 Area 2,007.6 2,035.6 2,036.7 2,041.2 2,049.5 Individuals 422.4 1,941.3 2,000 500 Results Results Plan (1st half) (1st half) 0 FY13 FY14 FY15 1H FY15 FY16 1H FY16 1,500 100%

Deposit Shares in Yamanashi Prefecture (term-end)

1.8 1.8 1.7 1.8 1.8 1.6 Others 1,000 12.7 13.4 12.9 13.5 13.0 13.7 Kuninaka Agricultural 2,031.0 2,064.1 2,054.6 2,057.3 2,054.3 1,961.2 Area cooperatives

28.0 28.0 28.0 28.1 27.7 28.7 Shinkin banks/ 50% credit unions 500 7.3 7.1 7.2 7.0 7.1 6.9 Major banks (0.5)Ｐ Results Results Plan 0 (1st half) (1st half) 50.2 49.7 50.2 49.6 50.4 49.1 Yamanashi FY13 FY14 FY15 1H FY15 FY16 1H FY16 Chuo Bank

ゆうちょ銀行Excluding 0% Japanを除く Post FY13 FY14 1H FY14 FY15 1H FY15 FY16 1H Bank － 6 － Loans (1)

Loan (average balance) Balance by Customer Segment (average balance)

(¥ billion) (¥ billion) ＋35.7 1,490.0 Total 1,800 1,446.9 1,447.7 1,454.2 1,461.6 1,487.1 (＋2.4%) 1,500 National 257.6 300.6 319.7 315.8 309.7 297.7 and local government 1,600 1,490.0 1,487.1 Total bodies 1,446.9 1,447.7 1,454.2 1,461.6 1,000 Loan assets under the 808.4 767.2 756.2 768.1 802.0 807.7 Private- 1,400 193.8 185.9 sector 141.1 166.9 176.1 178.0 control of head office corporations 500 departments* 1,200 380.8 379.9 378.3 377.5 378.3 381.6 Individuals Tokyo 325.3 304.3 302.8 304.8 310.7 312.7 0 Bloc FY13 FY14 FY15 1H FY15 FY16 1H FY16 1,000 Results Results Plan (1st half) (1st half) Western 100% 166.5 168.2 168.2 173.8 190.9 193.8 800 Tokyo Bloc Loan Shares in Yamanashi Prefecture (term-end) 111.6 110.0 108.0 106.7 102.5 103.3 Gunnai Area 600 9.1 9.3 9.2 9.3 9.3 9.3 Semi-government institutions 7.3 7.6 7.3 7.4 7.1 6.9 Agricultural 400 cooperatives 32.3 50% 33.8 33.8 33.5 33.7 34.0 Shinkin banks/ credit unions Kuninaka 200 702.1 698.1 699.0 698.1 692.0 691.3 Area 8.9 9.0 9.2 9.4 9.5 9.2 Major banks

＋0.4Ｐ 0 Results Results Yamanashi Plan FY13 FY14 FY15(1st 1H half) FY15(1st FY16 half) 1H FY16 40.9 40.3 40.8 40.2 41.8 40.6 Chuo Bank

0% FY13 FY14 1H FY14 FY15 1H FY15 FY16 1H

*Note: Loan assets under the control of head office departments refers to loans to the Ministry of Finance, loans made under loan participation agreements and financial receivables transferred from other industries. － 7 － Loans (2)

Balance of Loans to SMEs (term-end) and Number of Business Loans

(¥ billion) Number of business loans (Number of loans) 600 9,972

9,457 10,000 9,282 9,121 9,100 550 8,921 8,829 8,795 9,000 Term-end 500 balance （¥ billion ） 8,000

450 7,000 496.2 504.0 491.7 501.9 471.3 473.3 455.3 456.3 400 6,000

Results Plan (1st half) 350 5,000 FY12 FY13 FY14 1H FY14 FY15 1H FY15 FY16 1H FY16

（※中小企業向け貸出金残高は、不動産関連地方公社向け貸出金を含む）

－ 8 － Securities (1)

Securities (average balance) Changes in interest dividends or securities yield

(131.7) (¥ billion) 13.7 15.4 8.5 17.6 8.8 16.5 Total (¥ billion) ((9.1)%)

1,443.9 1.34 1,419.1 20 1.28 1,366.8 1,389.8 1.24 1.18 1,312.2 1.11 2.2 1,282.5 Total 1.00 Foreign 15 0.8 3.4 bonds 0.3 1.0 3.3 5.4 1,600 Foreign 1.0 Investment trusts bonds 1.3 5.1 10 1.4 1,400 12.8 93.6 0.8 1.7 Stock 41.3 127.4 1.2 38.8 2.4 46.0 99.5 11.3 8.5 2.8 189.7 Investment 9.9 0.7 Yen 46.6 199.8 5 1,200 205.0 trusts 191.1 0.6 bonds 217.9 4.4 3.6 6.6 171.5 46.2 Results Results 130.5 43.9 Stock Plan (1st half) (1st half) 1,000 118.3 241.1 0 213.0 288.1 223.4 Corporate FY13 FY14 FY15 1H FY15 FY16 1H FY16 225.4 bonds38.7 800 222.3 83.3 38.3 Municipal 74.6 bonds197.4 Changes in bond modified duration 600 6.0 194.2 5.5 5.3 5.1 5.2 838.0 4.9 4.7 400 807.1 758.2 5.0 4.5 701.9 4.4 4.4 4.4 551.7 496.0 200 JGBs 4.0

0 3.0 Foreign FY13 FY14Results FY15 1HResults FY15 FY16 1H FY16 Plan bonds (1st half) (1st half) 2.0 Yen bonds

1.0 － 9 － 0.0 FY13 FY14 FY15 1H FY15 FY16 1H Securities (2)

140 Securities (subject to mark-to-market valuation) Changes in interest dividend-yield securities 120 (¥ billion) (2.8) (¥ billion) (186.2) ((13.1)%) 100 ((3.3)%) 1.599.6 1,418.4 1,430.4 1,360.7 1,410.9 80 90.5 Total 2.1 82.7 5.0 79.9 48.2 32.8 Foreign 60 57.3 5.5 bonds 1,224.7 Total 0.0 41.9 27.4 1,600 40 Stock Foreign 27.7 bonds 27.7 37.8 Yen 1,400 19.8 79.1 20 32.5 121.5 27.7 bonds 60.4 216.8Investment trusts 21.1 22.1 Investment 47.6 152.2 14.8 14.4 10.9 trusts 1,200 8.4 46.3 219.3 0 203.2 179.7FY13 FY14 FY15 1H FY15 FY16 1H 141.0 265.1 42.7 Stock 1,000 111.9 5,500 210.5 39.3 Changes275.0 in Securities gains and losses 225.4 89.2Corporate bonds 800 219.1 4,500 37.8(¥ million) 227.3 76.1 Municipal 983 600 3,500 bonds 191.3 Stock-related gains5,219 and losses 2,500 400 818.9 774.2 696.1 592.4 Bonds-related 4,008 3,820 1,500464.5 200 JGBs gains and losses

500 0 740 1,032 543 FY13 FY14 FY15 1H FY15(500) FY16 1H284 10 28 Results Results (1st half) (1st half) (1,500) FY13 FY14 FY15 1H FY15 FY16 1H － 10 － Fees and Commissions

Fees and Commissions / Fees and Commissions Ratio Sales for Investment Trusts, Life Insurance Products and JGBs

12 (¥ billion) 40 (¥ billion) (8.1) 37.1 ((27.3)%) Total Fees and commissions ratio 30.4 30.3 29.6 12.10% 12.11% 11.86% 27.1 26.8 16.9 Life insurance 11.44% 11.43% products 10 14.1 21.5 14.6 15.6 ¥ 4,646 million 12.2 20 15.9 +0.3 ¥ 38,349 million 5.2 JGBs for ¥ 4,591 million 12.2 individuals (+5.1%) 4.9 1.5 ¥ 38,691 million 4.9 1.5 8 0.9 Total 1.2 7.3 15.0 Investment 14.2 12.5 6.9 7.0 10.0 11.4 10.0 8.1 trusts 6.6 6.5 Results 0 (1st half) Plan 6 FY13 FY14 FY14 FY15 FY15 FY16 FY16 1H 1H 1H 3.8 3.5 3.5 2nd half 3.3 3.2 Plan Commissions for Sales of Investment Trusts, Life Insurance Products and JGBs Held by Individuals 4 （¥ billion） +0.1 2.5 (+6.2%) Total 1.7 2.0 1.6 1.6 Life insurance products 1.2 2 1.5 0.6 0.7 0.8 0.8 3.3 3.4 3.5 1st half 0.4 JGBs for 3.2 3.2 1.0 0.0 0.0 individuals 0.0 0.4 0.0 0.5 0.0 0.8 0.9 0.9 0.9 Investment 0.3 trusts 0 0.0 FY12 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 1H FY16

Results Plan * Fees and commissions ratio= Fees and commissions / Gross banking profit (1st half) － 11 － Operating Expenses and OHR

(¥ billion) (1.37)P 73.61% 74.89% 73.57% 72.18% 70.81%

64.05% 40 ¥ 27,927 million ＯＨＲ ¥ 38,691 million ¥ 13,758 million ¥ 27,156 million ¥ 21,477 million ¥ 38,349 million (0.7) （(2.7)%） 28.5 30 28.1 27.9 27.9 Total 27.1 1.0 1.0 1.2 1.4 1.3 Enterprise tax

11.6 11.7 11.5 11.2 10.2 Non- 20 personnel expenses 13.7 0.8

10 5.0 15.7 15.3 15.5 15.1 15.2 Personnel 7.8 expenses

Results Plan (1st half) 0 FY12 FY13 FY14 FY15 FY16 1H FY16

*OHR=Operating expenses / Gross banking profit on core operations － 12 － Credit Cost

Credit cost ratio = Total credit cost / Average loan balance Total credit cost = General provision to loan loss reserve + Provisions to Total Credit Cost / Credit Cost Ratio specific loan loss reserve + Loans written-off + Loss on sale of claims + Others

（\ billion） 2.23% Credit cost ratio 30

25 (0.09)P 0.92% 1.25%

20 0.47% 28.8 0.31% 0.36% 0.37% 0.16% 0.15% 0.09% 0.11% 0.07% 0.02% 0.00% 0.02% 0.02% (0.02)% (0.06)%(0.10)% 15 0.20% 0.03% (0.06)% 16.1 Total credit cost 10 13.5 ¥0.4 billion (1.3) ¥1,487.1 billion 5 6.9 1.7 5.1 5.1 1.4 0.9 4.3 0.4 2.2 2.1 2.9 0.3 0.4 0.4 0.0 0 (0.3) (0.9) (0.9) (1.5) Results Plan Plan (1st half) (2nd half) (5) FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY16 1H

－ 13 － Yields & Interest Margins

(％) 2.07

2.00 1.90

1.74 1.64 1.53 1.50 1.42 Yield on securities 1.33 (yen-denominated) 1.29 1.25 1.24 1.27 1.19 1.18 1.16 1.08 Yield on loans 1.03 (yen-denominated) 1.16 1.16 1.17 1.19 1.08 1.13 1.12 1.00 1.07 0.99 0.99 0.98 Cost ratio 0.92 0.96 0.95 0.66 0.58 Loan/deposit 0.48 margin 0.50 0.41 0.39 0.33 0.33 0.27 0.28 0.13 Interest margin 0.24 0.22 0.21 0.04 0.14 0.15 Interest on 0.10 0.12 0.14 0.14 deposits 0.17 0.11 (yen-denominated) 0.15 0.03 0.00 0.08 0.06 0.06 0.05 0.05 0.05 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 1H FY16 Plan － 14 － Capital Ratio (Non-Consolidated Basis)

Changes in equity ratio Breakdown of Regulatory Capital

19% (¥ billion) FY1 6 FY1 3 FY1 4 FY1 5 (1st half) Regulatory capital 161.0 164.8 172.2 176.3 18% 17.85% 17.50% Risk-weighted assets 965.8 986.9 984.0 987.6

17% 16.67% 16.70%

16% Risk-weighted Assets Methods Employed Credit risk Standardized Approach (SA) Operational risk Basel II Standardized Approach (TSA) 15% The capital ratio of 17.85% ranks first among 54 domestic banks to which （ reference ） the standard is applied. Interest rate risk of bank account（End of Sep 2016） (Source: Internal research) (¥ billion %) 14% Interest rate 31.5 risk amount Amount o f 176.3 13% capital FY13 FY14 FY15 FY16 Outlier ratio 17.9%

1H ※ We use internal model to calculate core deposits

－ 15 － Return to Shareholders

Work toward increasing the level ＜The introduction of of internal reserves required to performance-linked dividend＞ To pay a stable annual dividend of Dividend maintain sound management To enhance the return of profits ¥7 per share and set the shareholder return rate through dividend and Policy while at the same time providing to shareholders, the following for the stable payment of will be performed from the share buybacks at 20% - 30% per dividends. current year. year.

Paid 70th Anniversary Commemorative dividend of ¥1.00 Dividend increase of ¥0.5 Dividend increase of ¥0.5 Dividend increase of ¥3.0 Trends in Dividend Payment (interim ¥3.5, year-end ¥3.5) (interim ¥3.0, year-end ¥3.5) (interim ¥3.25, year-end ¥3.75) (interim ¥5.0, year-end ¥5.0) FY16 FY10 FY11 FY12 FY13 FY14 FY15 (forecast) Div idend per share (annual) ¥6.00 ¥7.00 ¥6.00 ¥6.50 ¥7.00 ¥10.00 ¥9.00 Period-end share price ¥404 ¥368 ¥429 ¥466 ¥526 ¥413 - Div idend yield 1.48% 1.90% 1.39% 1.39% 1.33% 2.42% -

Acquired 1,793 thousand Acquired 2,079 thousand Acquired 550 thousand shares in Apr. 2013 shares on May 27, 2010 shares on Dec. 26, 2011 and 1,378 thousand shares in Feb. 2014

Acquired 2,209 thousand Return to Shareholders Acquired 1,906 thousand shares Acquired 2,600 thousand shares Acquired 1,577 thousand between Dec. 2010 and Mar. 2011 between Feb 2013 and Mar. 2013 shares in Feb. 2015 shares in Feb. 2016

FY16 FY10 FY11 FY12 FY13 FY14 FY15 (¥ million) (forecast)

Annual dividend (1) 1,089 1,256 1,062 1,134 1,211 1,712 1,530 Treasury stock acquired (2) 1,433 644 989 835 834 899 -

Return to shareholders (3)=(1)+(2) 2,522 1,901 2,052 1,970 2,045 2,611 1,530

Net income (non-consolidated) (4) 3,861 6,965 5,870 7,898 8,200 8,737 6,900

Div idend payout ratio 28.34% 18.08% 18.22% 14.42% 14.83% 19.70% 22.18%

Shareholder return ratio (3)/(4)x100 65.32% 27.29% 34.95% 24.94% 24.94% 29.88% 22.18% (Note) Calculated in yen and rounded down

－ 16 － II Economic Trends in Yamanashi Prefecture

－ 17 － Business Trends

Gross Production by Economic Activity Diffusion Index for Yamanashi Prefecture (Industrial Sector = 100） (BOJ’s Tankan Survey) 30 （％） Non- 2.0 1.3 manufacturing 4 Agriculture,forestry, 5.7 fisheries/mining All industries 0 Non- 23.42.0 Manufucturing manufacturing 8 Manufacturing (5) 34.2 20 All industries 5 7.2 13.9 Construction Manufacturing 3 1.2 10.2 6.5 Utilities

4.5 Wholesale/retail 10 15.2 Financing/insurance 14.2 Real estate 11.2 6.9 0 Transport/ communications Services 19.6 20.8 *Yamanashi Prefecture Annual Report (10) on Prefectural Accounts for 2013 Annual Report on National Accounts for 2013

Percentage of Shipments of Products (20) Manufactured in Yamanashi Prefecture （2014） Yamanashi Japan Prefecture (30) 25/99 12 12 FY13 26/3 6 6 9 9 12 12 27/3 FY14 6 6 9 9 12 12 28/3 FY15 6 9 6 9 12 12 (estimate) Concentrated in Machinery Industry –IT-Related, etc (Bank of Japan, Kofu Branch) Economic Census

－ 18 － Yamanashi Prefecture Economic Topics

Effects on Yamanashi The Bank's Initiatives for Economic Revitalization Topics Prefecture for Yamanashi Prefecture

Increase in tourists - Meeting demand for funds from tourist destinations and facilities - 2015, total guest number 854 thousand people - Meeting demand for settlement/currency conversion from foreign tourists June 2013 (y-o-y+ 12.9%) and the most in the past - Improvement of the prefecture business operator's acceptance of foreign guests Mt. Fuji designated as a World - Of which foreigners beyond the first 100 million to Site people and 131 million people (y-o-y + 38.4%) ・Credit card payment terminal is provided free of charge to eating and drinking establishments at the foot of Fuji North and Yatsugatake south foot, Implementation of English conversation support for retail outlets and -Bustle has spread in addition to Fuji restaurants in the prefecture, Foreign currency exchange machine installed at prefectural Mt. Fuji World surrounding area Heritage Center etc.

June 2013 Increase in residents -Cooperation with the Yamanashi Prefectural Government to Prefectural Government opened - "Yamanashi living support center"(Yurakucho) FY2015 increase the resident population Yamanashi Living Assistance Center prefecture migrants 210 people via (previous year +11 -Began handling of the “alliance mortgage” in Hokuto City , in Yurakucho people) City , - cho , -cho , City , and Minami March 2014 - Yamanashi Prefecture ranked No. 2 according to Alps City） Began employment service at this “Ranking of countryside regions desirable for living” - Conclusion of partnership agreement with the local government for regional center (Return to Your Hometown Support Center survey) revitalization in Hokuto City and Uenohara City

-Strengthening cooperation with the government measures, FY2019 Increase in tourists visiting Yamanashi Prefecture prefectural-wayside cities and towns Chubu Odan Expressway and orders opportunity -Business matching strengthening of the prefecture companies Opening from Futaba – to Shinshimizu Expansion of distribution centers -Funds corresponding on-logistics base installation, etc.

December 2015 - Meeting demand for funds for the development of areas surrounding stations Maglev Chuo Shinkansen construction - Provision of loans to those who intend to move to Yamanashi Prefecture approval Progress developing areas surrounding stations - Cooperation with the Yamanashi Prefectural Government to increase the October 2016 (such as new housing areas) resident population Yamanashi Prefecture Announces Interim Draft of Improvement Policy "Linear Environmental - Signed comprehensive collaboration agreement on regional creation with Bank Future City" around the Station of Tokyo-Mitsubishi UFJ

Increase in attention to wine using Koshu grapes - Strengthening of support for export July 2013 In Europe and Southeast Asia (such as exhibitions at overseas business meetings and cooperation ‐ "Yamanashi" wine designated by the FY2014, wine exported under the Koshu wine with foreign partner banks) National Tax Agency as a geographical world export project was 31,200 bottles (y-o-y +25.3%) ‐This represents an increase of about 16 times from - Continual dispatch of Bank staff to wineries indication FY2010 when exports started => improving the capability of making good judgment and meeting ‐Exports to non-EU countries accounted for 71.4% demand for funds － 19 － Local Industries in Yamanashi Prefecture

Wine Sake Mineral Water

- 21.0% share of shipment amount ranks second in Japan. - 29.3% share of shipment amount ranks first in Japan. - "Yamanashi" wine designated as an indication (National Tax Agency)

Fruits Jewelry Silk Fabric

- Shipment amount of ties ranks third in Japan.. - Harvest of grapes, peaches and Japanese plums ranks first in Japan. - 25.5% share of shipment amount ranks first in Japan. - Shipment amount of down quilts ranks second in Japan.

Knit Products Inden Leather Traditional Japanese Paper

- Shipment amount of shoji paper and calligraphy paper ranks second in Japan.

*Source: 2014 Census of Manufacturer, 2015 Census of Crops

－ 20 － Preparations for High-Speed Transportation Network

Expected Effects: Increase in tourists from Kansai and Tokai regions, increase in opportunities for receiving orders, expansion of logistic facilities, and increase in residents due to expanded commuting radius to Greater Tokyo

Maglev Chuo Shinkansen Line Chubu Odan Expressway

・October 17, 2014: Minister of Land, Infrastructure, Transport and Saku-Komoro Joshin-etsu Tourism approved the start of construction, with opening To Nagano and Nagoya JCT Saku-Minami IC – Expressway planned for 2027 Connected to Nagano Saku Komoro JCT Expressway (direct access) Opened to traffic in March 2011 ⇒ Request for certain segments to enter service by the start Yachiho IC – Nishi Kanto Expressway Yachiho Saku-Minami IC of the 2020 Tokyo Olympic Games Scheduled to open in 2017 To Hanazono (Saitama Pref.) Chuo Expressway Nagasaka JCT – Yachiho IC Connected to Kan-etsu Expressway “Planning stage assessment” ・ December 2015: Construction of Yamanashi side section of began in Dec. 2010 Okegawa iiiiiiiiiiMinami Alps tunnel (total length of 25 km) started Chubu Odan kitamoto IC Nagasaka Expressway To Nagano and Saku Ken-o Expressway ・January 2016: Station construction started Connected to Joshin-etsu Expressway

・October 2016: Yamanashi Prefecture Announces Interim Draft of Futaba Chubu Improvement Policy "Linear Environmental Future City" around Odan Expressway

the Station Kofu Hachioji JCT Shirane ・November 2016: Nagano-machi-gun started construction of Otsuki Minami Alps tunnel Minami Alps Takaosan IC

Chuo Expressway Masuho Masuho IC – Rokugo IC Takaosan IC – -Aikawa IC Map of Maglev Chuo Shinkansen Line Route Scheduled to open in FY2016 Fuji- Rokugo opened in June 28, 2014 yoshida Rokugo IC – Subashiri IC – Gotemba IC Sagamihara- Shimobe-onsen Hayakawa IC Nakatomi Aikawa IC Higashi-fujigoko road Began site negotiations in 2012 Scheduled to open in 2018 Yamanashi Pref.：Requests opening by 2020 Scheduled to start Shimobe-onsen Subashiri IC operation in 2027 Hayakawa Ebina IC Nakatugawa Iida Minobusan Shinagawa Gotemba IC Kofu Sagami- hara Nanbu Shin-Tomei Expressway Gotemba JCT Yamanashi Shimobe-onsen Hayakawa ＩＣ – Nanbu ＩＣ Tomizawa Nagoya Maglev Test Line Scheduled to open in 2019

Nanbu ＩＣ – Shin-shimizu JCT Tomei Expressway Osaka Nara Travel Time Scheduled to open in 2018 Shinagawa-Kofu 25 min Shin-shimizu Shinagawa-Nagoya 40 min JCT Shinagawa-Osaka 67 min The opening of the Chubu Odan Expressway towards Shizuoka means : Kofu City – Shizuoka City can be accessed in 1 hour 40 minutes (about 1 hour shorter) ※ Station locations further west of Nagoya are undecided. － 21 － Ⅲ Medium-Term Management Plan “S.T.E.P. up 2019” Progress Report

－ 22 － Diagram of ”S.T.E.P. up 2019”

Management vision (Ideal A Bank that grows and develops together with Yamanashi and and prospective image) its surroundings as a driving force for regional economic revitalization Live up to the trust accorded by customers and Theme during the plan contribute to regional revitalization Enhance stakeholder satisfaction (society, customers, shareholders, and employees)

Establish a financial and revenue base supporting sustainable growth

Realization of a business model adapted to changes in the environment Selection and concentration, and differentiation from other financial institutions

Strengthen retail Strengthen corporate Strengthen coordination with industrial, Strengthen and expand the capital solution banking solution banking government, and academic funds markets investment approach

Build and strengthen a robust management structure

Optimally redistribute management Develop human resources and resources such as branches, human Advance IT utilization strengthen organizational capabilities resources and IT systems Fundamentally reform and reengineer Strengthen the approach and enhance operations based on sophisticated the effectiveness of internal control risk management approaches

Strengthen the enhancement of Strengthen CSR activities customer and employee satisfaction Rigorously enforce compliance and the protection of customers and their privacy － 23 － Basic Strategies and Financial Targets of Medium-Term Management Plan ”S.T.E.P. up 2019”

＜Basic Strategies Ⅰ＞ Realization of a business model adapted to changes in the environment Selection and concentration, differentiation from other financial institutions ・Increase and strengthen earnings with efficient and effective banking activities by selecting priority initiatives and channeling the redistribution of management resources. ・Strengthen earnings capabilities by deepening the scope of banking transactions in existing markets while focusing on the creation of new earnings opportunities. ・Differentiate the Bank from other financial institutions with initiatives including the development of products and services and the improvement ofmarketing skills. This will be done to respond pertinently and promptly to the increasingly sophisticated and diverse needs of customers, as well as by banking with a greater number of customers. ・Endeavor to drive regional economic revitalization and create business opportunities for the Bank. This will be done by upgrading Yamanashi Chuo Bank’s financial intermediary functions in collaboration with more specialized institutions, and by leveraging the Bank’s own expertise and network. ・Secure and expand steady income streams by strengthening and expanding the Bank’s capital markets investment approach.

＜Basic Strategies Ⅱ＞ Building and strengthening a robust management structure ・Develop an organization in which each employee can have a motivating and fulfilling career. This will be done by fostering confident and diligent human resources who are capable of taking self-motivated and independent action. ・Build a highly profitable structure through the optimal distribution of management resources. This will be done primarily by optimizing the locationof branches and assignment of personnel, strengthening the operational framework of IT systems, and optimizing costs. ・Strengthen and expand the revenue base by realizing a consistent approach to sales in all channels. This will be done by making effective use of IT and upgrading non-OTC sales channels. ・Expand earnings opportunities by examining and developing new banking operations. This will be done by fundamentally reforming existing operations and generating more banking activity man-hours and personnel. ・Further strengthen the Bank’s risk management approach including for credit risk and asset-liability management (ALM). ・Strengthen compliance and the protection of customers and their privacy as a management foundation and increase employee awareness. (¥ billion) (¥ billion) 15 3,500 Term-end balance of Term-end balance of FY15 FY16 1H Plan targets Change between Net business Item profit(¥ billion) 3,000 deposits, etc. (¥ billion) loans(¥ billion) Results Results (Year ending March 2019) FY2016 and FY2019 Net income (¥ billion) 2,500 3,260.0 10 10.0 Net business profit 9.1 7.7 9.4 9.1 9.5 2,987.1 9.5 ＋ 0.4 8.7 2,000 2,968.7 7.8 8.2 7.7 2,941.1 2,935.3 1,500 Net inc ome 6.0 8.7 5.0 5 5.0 6.0 (2.7) 1,000 1,521.3 1,590.0 Year-end balance of deposits, 1,495.9 500 1,512.1 etc. (deposits + investment 2,987.1 2,935.3 3,260.0 ＋272.9 Targets 1,447.5 Targets trusts + public bonds) 0 0 Year-end FY13 FY14 FY15 FY16 FY18 FY13 FY14 FY15 FY16 FY18 balance of 1,521.3 1,512.1 1,590.0 ＋68.7 1H 1H loans － 24 － Individual Strategies Based on Basic Strategy I (1) Strengthen retail solution banking

Priorities Establish an approach for marketing personal loans

・Increase both earnings and the balance of personal loans ・Developing a consulting business centered on total asset banking うby breaking strategic bottlenecks ・Provide products and services promoting Yamanashi Chuo Bank (1) Increase and strengthen customer contact ・Increase the balance by strategically as the main bank (2) Provide competitive products and services re-examining personal loan products ・Develop lifelong business relationships around personal loans ・Strengthen the function of Non-OTC ・Develop human resources with professional knowledge and practical skills (3) Build an approach foreseeing changes ううin the environment channels ・Strengthen collaboration between retail branches and LS

Make more proposals for asset succession （¥ billion） Trend in Individual Loan Balances (Term-end) and inheritance to affluent customers 38.1 38.2 38.1 38.3 Total ・Hold individual consultations about asset succession, and seminars 400 37.7 15.4 14.8 13.6 12.6 12.2 うon inheritance and wills Other loans う→ Uncover needs for asset succession (inheritance) ・Build up a portfolio of testamentary trust and estate liquidation projects 366.5 367.9 367.9 365.2 371.2 Housing loan iiby strengthening collaboration with Asahi Chuo う ii→ No. of contracts: 30 (Cumulative no.: 51) 300 ・Propose solutions for business succession to company owners う→ Market corporate insurance policies to corporate deposit holders ううううand new corporate banking prospects

Inheritance measures support results 200Proactive Promotion of JiMOCA Insurance for both 115 individual and FY12 FY13 FY14 FY15 FY16 1H 4 95 corporate ・ In June 2016, launched the JiMOCA hybrid ATM customers 68 (Policies) うcard and credit card Testamentary 26 trust and estate3 42 FY2014 ・ Contribute to customer footfall for JiMOCAううううう liquidation 20 (Projects) FY2015 うpartners (member stores) and regionalううううううう うrevitalization Investment trust 0.7 FY2016 first half and intermediaries2 0.8 (\ billion) 0.6 ・ Issue DC Card happy points in proportion with the うamount of banking transactions by cardholdersうう Loan creation 0.4 う-> Expand banking transactions and strengthenうう (\ billion) 1 1.1 0.1 うううcross-selling ・No. of new members at end of Sept.: 5,166 － 25 － Individual Strategies Based on Basic Strategy I (2) Strengthen corporate solution banking (a)

Strengthen supportive initiatives for startup Strengthen business feasibility studies capabilities and establishment phase

◆Create the Business Feasibility Studies Committee ◆Created an Establishment and New Business Support Desk -> Branches offices, Head Office and specialized external -> Conduct hands-on support such as formulation of organizations collaborate together to analyze the macro an establishment plan, procurement of an establishment environments and trends of each industry, and create fund, and business growth after establishment individual solution charts for regional core companies (Committee to meet 14 times)

◆Strengthen the Head Office support approach ◆ Yamanashi Chugin Establishment Support Loan -> Appoint 49 external dispatched bank staff with highly Upgraded the Fine Start product specialized knowledge in each industry as Management 1) Reduced loan interest rate Support Staff by Field. 2) Increased the no. of preferential -> In the future, Management Support Staff by Field will be interest rate items assigned to the Corporate Solutions Office, etc. to further 3) Introduced preferential interest strengthen business feasibility studies capabilities rates linked to performance -> Support business growth after establishment by continuous monitoring Strengthen initiatives for growth fields

(Manufacturing and environmental protection fields) ◆Made an Establishment Support Guidebook -> Appoint a business advisor with abundant expertise -> Created a guidebook that summarizes the checkpoints and networks, and provide appropriate and advanced and knowledge needed at the establishment preparation solutions. stage

nursing care fields 【 (¥ million) (Number of loans) Healthcare and 58,000 903 1,000 842 873 56,000 787 824 900 Number of 54,000 800 borrowers 52,000 700 50,000 54,667 600 Balance of 48,000 52,336 50,446 loans 46,00047,118 48,737 500 44,000 400 42,000 300 】 FY14 FY14 FY15 FY15 FY16 1H 1H 1H

－ 26 － Individual Strategies Based on Basic Strategy I (2) Strengthen corporate solution banking (b)~ Circumstances of various funds

Yamanashi New Business Support Yamanashi Chugin Regional Revitalization Investment Limited Partnership Investment Limited Business Partnership

Investment target: Companies in the prefecture that are in the start-up phase or early stage, and Investment target: Companies at various life stages from the startup and establishment phase to the companies engaged in new businesses such as a second start-up. growth and maturity phase. Investments will also target salvageable companies in need of business Goal: Aiming to revitalize the Yamanashi Prefecture economy by the creation of new industries, reorganization or revitalization, as well as those already in liquidation or bankruptcy proceedings. increases in employment and the gross output within the Prefecture, etc. Goal: Aiming to underscore regional revitalization, including by enhancing regional industrial capabilities Total investment: ¥319 million and maintaining or expanding employment in the region by means of nurturing companies that will play Period: August 26, 2014 - December 31, 2023 (10 years) a role in the future of the region. Investors: Yamanashi Prefecture, the Kofu Chamber of Commerce and Industry, the Fujiyoshida Total investment: ¥500 million Chamber of Commerce and Industry, Co., Ltd., Yamanashi Chuo Bank, Yamanashi Chugin Period: March 29, 2016 - December 31, 2025 (10 years) Management Consulting Co., Ltd ◆Investor: Yamanashi Chuo Bank, Yamanashi Chugin Management Consulting Co., Ltd. ◆Results, etc.: ◆Results, etc.: No. of No. of Investment amount Investment amount projects projects

Accumulated (Results) (Results) Accumulated (Results) (Results) investment amount 3 ¥79,700,000 investment amount 1 ¥30,550,000

Projects currently (Forecast) Projects currently (Forecast) under consideration *16 *19 5 projects/¥120,000,000 under consideration 6 projects/¥113,000,000 *Includes projects under consideration by multiple funds *Includes projects under consideration by multiple funds Yamanashi Sixth Industrialization Support Investment Limited Partnership

Investment target: Businesses that are joint ventures with agriculture, forestry and fisheries operators, and operators of other industries (sixth industrialization enterprises) Goal: Aiming to promote the revitalization of agricultural, mountain and fishery villages by becoming a growth industry that creates employment opportunities in these villages, by means of agriculture, forestry and fisheries businesses in the Prefecture engaging in the construction of value chains and the utilization of regional resources. Total investment: ¥500 million Period: March 31, 2015 - December 31, 2029 (15 years) Investors: Agriculture, Forestry and Fisheries Fund Corporation, Yamanashi Chuo Bank, Yamanashi Chugin Management Consulting Co., Ltd. ◆Results, etc.: No. of Investment amount projects

Accumulated (Results) (Results) investment amount － －

Projects currently (Forecast) *5 under consideration Undecided

*Includes projects under consideration by multiple funds － 27 － Individual Strategies Based on Basic Strategy I (3) Strengthen coordination with industrial, government, and academic funds (a)

Help advance comprehensive regional strategies Help revitalize agriculture and food industries

◆Yamanashi Food Business Liaison Conference ・Utilize and engage with Yamanashi Bank’s network and knowledge Membership organization that provides information and interaction ・Support the promotion of comprehensive strategy measures of 28 local opportunities for food-related business operators iiauthorities in the Prefecture by accurately engaging with local Held 24 times since 2006. 330 members (as of Sept. 30, 2016). iicharacteristics ◆Agri-Business School Cooperate and coordinate New agri-business school with managerial and entrepreneurial spirit that with local authorities has been aiming to train managers to promote the sixth industrialization from FY2011. ・Sign partnership agreement Started this fiscal year as a specific foundation support project in the to revitalize regional economy Establishment Support Business Plan based on the Act on Strengthening Results Industrial Competitiveness formulated by each municipality in the FY2015: Hokuto City Prefecture and certified by the country. FY2016: Uenohara City FY2016 results (as of Sept. 30, 2016): 56 trainees, held 6 out of 14 times.

Promote CCRC ◆Yamanashi Food Sector Business Matching Fair An exhibition and business fair to support the development and expansion of sales channels by providing agricultural- and food-related business ・Operational support of Tsuru City ----- operators with opportunities to hold business meetings with corporate buyers - CCRC concept study group held on Thursday, July 21, 2016, it’s the 4th time in Tokyo. ・Participate in City version The 11ｔｈ meeting, 2016 year results: 65 exhibitors, 1,000 visitors, and 2,300 of the CCRC concept study group ibusiness meetings ・Participate in Yamanashi Prefecture 's– “"”Yamanashi: Towns of Lifetime ii Activities” study group Balance of loans to agricultural field

(¥ million)2,000 Promotional support 1,967 of moving 1,558 1,577 1,625 1,400 1,380 ・Housing loans in collaboration with 1,225 local authorities FY2015 Hokuto City, Fujiyoshida City 1,000 FY2016 Fujikawaguchiko Town, Ichikawamisato Town Uenohara City, Minami Alps City

0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 － 28 － 1H Individual Strategies Based on Basic Strategy I (3) Strengthen coordination with industrial government, and academic funds (b)

Help revitalize the tourism industry Export project concept

【The situation regarding tourists visiting Yamanashi The elimination of tariffs due to TPP coming into effect was considered as an Prefecture】 opportunity to sell regional and industrial products with brand power and technological capabilities to overseas markets, and "export projects" were 2015: Number of tourists developed from April 2016, thereby supporting customers at the stage of 31.46 million (+ 15.0% from 2012) overseas development. 2015: Average spent on tourism per person ¥12,609 (+ 14.5% from 2012) Results as of FY2016 1st Half

Results as of FY2016 1st Half ・In June 2016, the 8th Hong Kong /South China Information District Japanese-Company Business Discussion Meeting was held, and 10 business partners on overseas participated. ＳＴＥＰ deployment ・In Sept. 2016, the Vietnam Economic Visit Mission ① Invited tourism advisors and did consulting services to business １ provided to was conducted, and 8 business partners participated. operators aiming to expand business Introduced various seminars held by JETRO and customers other overseas business expansion support ⇒ Tourism advisor Mr. Matsui did consulting 11 times for 10 clients. companies. ② Broadly disseminate sightseeing-related information through outside- prefecture store networks and SNS, and through tourism/product fairs, etc. in Tokyo Overseas ・ In the first half of FY2016, the Asia Desk visited 58 ⇒ Information disseminated on Facebook: 64 times, through development business partners and supported them according to tourism/product fairs in 2 companies (in-house) in Tokyo. ＳＴＥＰ consultation the stage of overseas deployment of each company. ③ ２ ・ Consultation using overseas disparched staff and Implemented the Yamanashi Tourism Fair as a special project of the reception for overseas financial institutions Yamanashi Food Sector Business Matching Fair customers - ⇒ Ten group exhibitors (65 companies and groups for the entire

matching fair) 424 purchasing companies, 632 people (+51 companies ・Held 3rd Business Meeting for the Export of Food and +39 people compared with the previous year) Preparation from Yamanashi in Bangkok; 9 business partners ④ Implemented businesses of the Katakoto English Project to support for participated. ＳＴＥＰ ・Co-organized Mfair Bangkok 2016 Business tourism-related business operators in the acceptance of foreign tourists customers’ Matching Platform for Manufacturers’ Network in ⇒ Applications received from 20 Prefectural restaurants, etc., and ３ overseas Asia; 3 business partners exhibited. support provided for 13. expansion ・Co-organized "FBC Shanghai 2016 Monozukuri Business Opportunity". 5 suppliers exhibited. ⑤ Implemented campaign to provide credit card terminals free of charge in the Yatsugatake tourist region (Hokuto City) Support for ⇒ Introduced 57 business partners of branch offices located in Hokuto expanding ・Description and proposal to customers of loans to City to affiliated company Yamanashi Chugin DC Card Co., Ltd., and ＳＴＥＰ overseas subsidiaries overseas acquired 28 new member stores. ・ Business information consultation reception for ４ development local affiliates by overseas dispatched staff. of customers － 29 － Individual Strategies Based on Basic Strategy I (3) Strengthen coordination with industrial, government, and academic funds (c)

Public Interest Incorporated Foundation, Strengthen coordination with academia Yamanashi Chugin Regional Revitalization Fund ◆Comprehensive business collaboration with universities The University of Yamanashi, Yamanashi Prefectural University, Yamanashi In December 2015, a general incorporated foundation was established in Gakuin University, and Yamanashi Gakuin Junior College have concluded an order to contribute to the prosperity of the local community and the revitalization agreement on comprehensive business collaboration to the Bank respectively . of the regional economy through subsidies to organizations and individuals who Two introductory reports issued about the universities’ research: A Direct conduct initiatives that contribute to regional creation. Approach to the University of Yamanashi’s Business Opportunities!, and In March 2016, it was recognized as being in the public interest and transitioned Yamanashi Gakuin University’s Management Navigation. One staff member was dispatched to the University of Yamanashi from July to a public interest incorporated foundation. It started doing business in April, 2016, and this person worked as a Regional Collaboration Coordinator to match with the Yamanashi Chuo Bank providing ¥400 million in capital. the technological seeds owned by the university with corporate needs, etc., thereby revitalizing the regional economy, and developing initiatives to promote the First financial region. institution Established the foundation for the purpose of regional revitalization, and received public interest accreditation

No. of Grant No. of Type of grant and target grant amount grants requests (¥ million)

Startup Corporate and 42 5 10 and individual establis 1st half Support hment 51 10 ◆An associate social coordinator of the University of Yamanashi 2016 phase organization, etc. results Create and discover projects through industry-academia cooperation aimed at For SMEs, etc. with the revitalization of regional economies, such as matching a university's businesses making use of 39 10 20 technological seeds with corporate needs. local industrial resources. As of March 2016, 112 employees were actively engaged after being appointed Startup Corporate and by the University of Yamanashi as University of Yamanashi Society Collaboration 76 ─ 10 and individual Coordinators. establis ◆Promote universities and other centers of the community (COC) hment Support 2nd half 5 ─ 10 Yamanashi Chuo is participating in both initiatives of the University of phase organization, etc. 2016 Yamanashi and of the Yamanashi Prefectural University to work with key upgrade plan Individuals selecting UIJ-turn 42 ─ 6 businesses and other centers of the community (COC) to conduct regional system revitalization projects, and a similar initiative through collaboration with 12 Individuals working to improve universities inside and outside the Prefecture who have made the University of 13 ─ 10 Yamanashi the university in charge (COC+). technology, etc. Various measures were actively implemented in order to solve regional issues Total ─ 222 ─ 76 and so forth, by making use of such university assets as knowledge and students. － 30 － Individual Strategies Based on Basic Strategy Ⅱ Optimal distribution of management resources, Advanced IT utilization,Fundamental operational reforms

Optimal distribution of management resources

Optimize the branch banking channels and personnel assignments, and strengthen the banking approach Branches Head Office

○Streamline the Bank to generate more ○Bolster Head Office staff for branch staff supporting branch banking Rotate branch staff ○Redistribute management resources operations to growth regions ○Reengineer the branch banking and mission-specific door-to-door banking approach Head Office Head Office Reorganize Redistribute staff Develop and banking banking support staff support staff branches to growth regions enhance branches Banking Banking staff staff Other Head Other Head Implement Continue to Development of Office staff Office staff measures with increase number sales structure Clerical Clerical emphasis on to West Tokyo based on flexible staff staff efficiency area business hours

Advance IT utilization Fundamentally reform operations

Enhancement of channels according to changes Generate more banking activity man-hours and staff in bank contacts sought by customers

・Strengthen sales force by shifting approximately 140 clerical staff ・Expansion of functions for Internet banking for individuals to the sales department during the current medium-term management plan ・Establishment of Internet branch

Implement BPR of branch operations Achieve consistent sales posture on all channels （ Omni Channel Sales ） Centralize Head Office supervision Computerize and systematize ・ Investigation and consideration in introducing ATM sales function Simplify and standardize ・Distribution of new EBM information Reduce paperwork － 31 － Western Tokyo Bloc Strategy (1)Status of Expansion of Branches and Other Offices in the Western Tokyo Bloc

Office Network Expansion ・Since launch of Hachioji Branch in 1968, the Bank has launched 15 branches in the Western Tokyo Bloc ・Loan Square, mortgage professional offices expand to the current 4 offices

● Higashimurayama Branch Operations commenced and established Loan Square ● Hamura Branch Higashimurayama in Aug. 2015 ● Kichijoji Branch Operations commenced Operations commenced in ● Tokyo Branch in June. 2008 June. 1976 Operations commenced in June. 1877 Moved to current site in June. 1978 as Daiju National Bank Tokyo Branch ● Tachikawa Branch Moved to current site in July. 1916 Operations commenced in Oct. 1974 ● Kokubunji Branch ● Koganei Branch Moved to current site and established Loan Operations commenced in Operations commenced in ● Branch Square Tachikawa in Aug. 2004 Nov. 1977 Dec. 1972 Operations commenced in Mar. 1965 Moved to current site in June. 1998 ● Hachioji Branch Tokyo Operations commenced in Mar. 1968 Hamura Established Loan Square Hachioji in Higashimurayama Sept. 2001 Nishi- Completed new branch as core base in kokubunji Kichijoji Ogikubo Western Tokyo Bloc in Aug. 2014 Nishi- hachioji Hino Tachikawa Fuchu Musashi- Shinjuku Kanda Hachioji koganei Takao Kokuryo Yamanashi Nakagawara Mejirodai Hirayama Chofu ● Ogikubo Branch ● Mejirodai Branch Hachioji- Joshi Koen Operations commenced in Operations commenced in Oct. 1970 Minamino ● Fuchu Branch Oct. 1975 Sagamihara Operations commenced Hashimoto in June. 2007 ● Minamino City Branch ● Chofu Branch Operations commenced in Mar. Kanagawa Operations commenced in 1997 June. 1973 Moved to current site in Nov. 2003 ● Machida Machida Branch ● Hino Branch ● Sagamihara Branch Operations commenced Operations commenced in Apr. 1977 Operations commenced in May 2012 in Mar. 2006 Established Loan Square Sagamihara in Sept. 2013

－ 32 － Western Tokyo Bloc Strategy (2) Western Tokyo Bloc Strategy / Change in actual results A

319 Realization of profitability and efficiency Expansion of 297sales base exceeding Yamanashi prefecture 20 from "point" to "line / face" 265 300 Number of loans and outstandings Balance of Loans (term-end) 210 in the medical223 and nursing care fields （¥ billion） 15 （¥ billion） Over 200 billion yen 200.8 Number of 183business loans 200 200 Term-end balance 134 190 （¥ billion) 10 19.7 186.8 17.8 15.2 180 12.6 100 172.5 5 9.8 170 168.7 Term-end 167.1 6.5 balance （¥ billion ) 160 0 0 FY12 FY13 FY14 FY15 FY16 1H FY11 FY12 FY13 FY14 FY15 FY16 1H 110 Balance of Loans to SMEs (term-end) Market size of Western Tokyo area （¥ billion） 104.0 ■ Number of private business establishments More than 50% of total loans 170 thousand 100 (about 4.0 times of the Yamanashi prefecture) Term-end 94.0 balance ■ population （¥ billion) 90 5.52 million (about 6.6 times of the Yamanashi prefecture) 81.6 ■ Number of households 76.8 77.8 80 2.54 million households (about 7.6 times of the Yamanashi prefecture) 70 ※ Western Tokyo area, includes the subarban cities, Nishitama-gun, ward, and Sagamihara-shi FY12 FY13 FY14 FY15 FY16 1H (source： As of 2013”Economic Census”, as of Oct 2016 “Estimated population”） － 33 － Western Tokyo Bloc Strategy (2) Western Tokyo Bloc Strategy / Change in actual results B

120 Loan (average balance) and Number of Commercial Borrowers 100 (¥ billion) 103.9 107.9 95.7 94.2 Individual loans Business loans 93.3 82.9 80 88.6 85.4 86.4 88.1 89.0 80.4 83.5 80.380.9 82.8 79.3 79.0 76.979.2 76.8 78.4 79.2 72.372.5 76.8 60 1,985 1,493 1,532 1,872 1,436 1,378 1,768 40 1,298 1,659 1,665 1,203 1,590 1,140 20 Commercial borrowers

0 5.0 220 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 * Commercial borrowers do not include the national government, municipal bodies and municipal public corporations 1H Individual deposit balance (term-end) Investment trust and life insurance sales amounts 200 (¥ billion) (¥ billion) Life insurance 203.6 2.5 3.1 2.2 194.1 1.4 180 192.2 1.6 189.2 1.1 Investment trust 183.9 178.4 0.8 160 0.0 1.8 1.8 2.1 1.9 2.1 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 1H 1H0.7 － 34 － Thank you for attending our analyst meeting. If you have any further questions, please do not hesitate to contact us at the following telephone number, email address or website.

Inquiries: Corporate Communications CSR Office Corporate Planning Division The Yamanashi Chuo Bank, Ltd. Tel: +81-55-233-2111 E‐mail [email protected] URL: http://www.yamanashibank.co.jp/

The reader is advised that these materials contain forward-looking statements. These statements do not constitute guarantees of future business performance, and they involve various risks and unforeseeable future circumstances. The Bank’s future business performance may be affected by changes in the business environment that are beyond the prediction or control of the Bank, and actual results may therefore differ substantially from the figures contained in the said forward-looking statements.