Our Operating Area

The Industry of Prefecture

In Kyoto many cutting-edge, high-tech industries exist side by side with traditional industries and the tourism industry built upon the city’s 1,200 years of history and culture. Kyoto is also known as the town of students with a high concentration of universities and academic research institutions, so it has an ideal environment for developing venture businesses and new industries. The manufacturing industries of are supported by a high level of technical capability that is unique to Kyoto, and they have captured high shares of the national market in a diverse array of fields and product categories.

Top-National Ranked Product Categories of Kyoto Prefecture by Value of Shipments Sector Product category Value of shipments Pollution measuring instruments 12.9 billion yen (51%) Spectral photometer 9.9 billion yen (47%) High-tech and research tools Other analyzing equipment 41.9 billion yen (47%) Physical, chemical machinery and appliances 17.3 billion yen (20%) Printmaking and printing Plate making machine 12.3 billion yen (76%) Ready-made kimono, obi 6.6 billion yen (39%) Traditional crafts Chirimen textiles 2.9 billion yen (75%) (Source) Food and beverages Japanese confectionery 37.4 billion yen ( 7%) METI: FY2013 industry statistics (domestic market share in %)

Operating Area and Population within the Area — Aiming to be a comprehensive and convenient regional —

Kyoto Bank’s Network — The populations within areas in our operating area and their prefectural rankings (As of March 31, 2015)—

Aichi Prefecture: 1

Kyoto Prefecture: 111 Overseas: 4 Representative Offices 2.6 million people, 13th Prefecture: 1 Shiga Prefecture: 12

Hyogo Prefecture: 8 1.4 million people, 26th 5.5 million people, 7th

Osaka Prefecture: 29 8.8 million people, 3rd Number of Branches in Our Operating Area Nara Prefecture: 7 (As of March 31) 1.4 million people, 30th Kyoto Osaka Shiga Nara Hyogo Other 200 Total population within our operating area: 19.7 million people 162 167 167 168 169 Percentage of total population of : approximately 16% 150

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January 2016: Takatsuki Johoku Branch Opens July 2016: Kariya Branch Opens The Branch is equipped with spacious Kariya City is a vibrant area where the 50 consultation counters and booths, fully headquarters and factories of a number automatic safe deposit boxes which are of automobile-related companies are also open on Saturdays. located. The Kariya Branch is the Bank’s second branch in Aichi Prefecture. 0 2012 2013 2014 2015 2016

4 The Bank of Kyoto, Ltd. Annual Report 2016 Support for Overseas Operations

In August 2015, we started a business alliance with the Bank for Investment and Development of Vietnam, a leading bank in Vietnam, and in March 2016 we started a business alliance with the Bank of East Asia, the largest independent local bank in Hong Kong, thereby strengthening our support system in Asia. We are providing our clients with a variety of business opportunities related to overseas expansion, including the individual support for our customers given by the Asia Desk established inside the Securities & International Division and by each representative office in Hong Kong, Shanghai, Dalian, and Bangkok, and by the holding of Asia Desk seminars and overseas business consultation meetings. For the overseas subsidiaries of our clients, we are actively engaged in “cross-border loans” to conduct direct loans from Japan. In fiscal 2015, we supported six US dollar-denominated loans, nine Japanese yen-denominated loans, and one Thai baht-denominated loan. For the first time, we supported a project of a local Mexico corporation (implemented in January 2016) , and of a local Taiwanese corporation (implemented in March).

Creation of an Overseas Network and Development of Personnel Effective in Overseas Business Overseas Network Dalian Representative Office Industrial and Commercial Bank of China Limited Bank of China (Formed a partnership in August 2005) KYOTO CHINA Securities & International Division Shanghai Representative Office Asia Desk

State Bank of India Hong Kong Representative Office CTBC Financial Holding Co., Ltd. (Formed a partnership in February 2013) (Formed a partnership in September 2013)

The Bank of East Asia, Limited INDIA (Formed a partnership in March 2016) THAILAND Bangkok Representative Office THE PHILIPPINES

Kasikorn Bank Metropolitan Bank and Trust Company (Formed a partnership in December 2005) VIETNAM (Formed a partnership in July 2013)

Joint Stock Commercial Bank for Investment and Development of Vietnam (Formed a partnership in August 2015) Vietnam Export Import Commercial Joint Stock Bank (Formed a partnership in August 2014)

..... Bank of Kyoto Representative Office

..... Partnerships with Overseas INDONESIA MEXICO Bank Negara Indonesia (Formed a partnership in April 2012) Banco Nacional de México, S.A., Integrante del Grupo Financiero Banamex (Formed a partnership in September 2016)

Development of Personnel Effective Overseas Business Confabs Hosted (Fiscal 2015) in Overseas Business Number of participating Name of business confab Actively send personnel for overseas training and companies Business Networking Event Jointly Hosted by Local Banks in Dalian 2015 16 companies branch manager overseas training, and develop Business Networking Event Held for Japanese Companies in Hong Kong and South China 27 companies personnel effective in overseas business Mfair Bangkok 2015 (Factory Network Business Conference) 15 companies Business Networking Event Jointly Hosted by Local Banks in Qingdao 4 companies By region: Number of personnel sent overseas FBC Shanghai 2015 (Factory Network Business Conference) 41 companies Shanghai Business Exchange Practice Seminar 18 companies Region Number of personnel sent 2015 Dalian — Regional Bank Joint Business Expo 10 companies China 20 Regional Bank Joint Seminar/Networking Event Guangzhou 14 companies Thailand 9 2nd Bangkok Business Exchange Meeting 62 companies Vietnam 1 Shanghai Business Exchange 2016 72 companies

The Bank of Kyoto, Ltd. Annual Report 2016 5