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 15.4 billion yen (54%) Spectral photometer 10.7 billion yen (47%) High-tech and research tools Other analyzing equipment 45.8 billion yen (50%) Physical, chemical machinery and appliances 18.9 billion yen (20%) Medical X-ray equipment 20.5 billion yen (11%) Ready-made kimono, obi 6.2 billion yen (37%) Traditional crafts Chirimen textiles 2.9 billion yen (73%) (Source) Food and beverages Japanese confectionery 39.3 billion yen ( 7%) METI: FY2014 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 October 1, 2016)—

Aichi Prefecture: 2

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: 31 Number of Branches 8.8 million people, 3rd in Our Operating Area (As of March 31) Nara Prefecture: 7 Kyoto Osaka Shiga Nara Hyogo Other 1.4 million people, 30th 200 167 167 168 169 172 Total population within our operating area: 19.7 million people 150 Percentage of total population of : approximately 16%

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August 2017: Moriyama Branch Opens (planned) The Moriyama Branch will have a grand opening after its relocation 50 to a commercial complex scheduled to open in front of JR Moriyama Station. The branch will have automatic safe deposit boxes that can be used even on Saturdays, as well as spacious consultation booths and other convenient features. 0 2013 2014 2015 2016 2017

4 The Bank of Kyoto, Ltd. Annual Report 2017 Support for Overseas Operations

The Bank utilizes its broad overseas network to actively provide support for overseas expansion, local business matching, trade activities and fund procurement by overseas affiliates. In fiscal 2016, we provided 2,489 instances of overseas business support.

Creation of an Overseas Network

Overseas Network Dalian Representative Office Industrial and Commercial Bank of China Limited Bank of China (Formed a partnership in August 2005) KYOTO CHINA International Division’s Asia Desk Shanghai Representative Office

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

Bank Negara Indonesia (Formed a partnership in April 2012) MEXICO

Banco Nacional de México, S.A., integrante del Grupo Financiero Banamex (Formed a partnership in September 2016)

Fiscal 2016 Loans to Overseas Subsidiaries of Japanese Companies Stand-by L/Cs Total of 12 L/Cs executed Cross-Border Loans Total of 18 loans executed For China RMB denominated 7 L/Cs For China USD denominated 3 loans For China USD denominated 2 L/Cs For China JPY denominated 1 loan For China JPY denominated 1 L/C For Thailand THB denominated 8 loans For Taiwan USD denominated 1 L/C For Hong Kong USD denominated 2 loans For Thailand THB denominated 1 L/C For Mexico JPY denominated 1 loan For U.S. USD denominated 1 loan For Malaysia USD denominated 1 loan For Vietnam USD denominated 1 loan

The Bank of Kyoto, Ltd. Annual Report 2017 5