Nanto Bank : Stakeholder Engagement (234kb)

Support for Value Creation

Stakeholder Engagement

Initiatives to improve engagement with stakeholders

Engagement with customers

Customer-oriented business operations

Committed to conducting business in the best interests of our customers, the Nanto Bank Group* has established a policy and action plan for customer-oriented business operations.

The Policy for Customer-oriented Business Operations is a concrete expression of our commitment to contributing to customers' stable asset formation in our sales of financial products. We will put this policy into practice, establish indicators (KPIs) to confirm the results of these efforts, and review and disclose the results periodically.

• Group companies subject to the KPI: The Nanto Bank, Ltd. and Nanto Mahoroba Securities Co., Ltd.
• 1. Pursuit of customers' best interests
  2. 1. We consider it to be in the best interest of our regional customers to nurture their assets, and we strive to conduct our business operations in an honest, fair manner in full compliance.
     2. In our commitment to providing high-quality products and services, we seek to enhance our consulting methods through development of highly specialized human resources and strategic deployment of our Group companies' capabilities.
     3. We work to achieve stable growth as well as regional and customer development by maintaining close, long-term relationships with as many customers as possible and helping them realize their life plans.
  3. Prevention of conflicts of interest that may unfairly impair customers' interests
  4. 1. We manage conflicts of interest appropriately to ensure that our customers do not suffer any disadvantage as a result.
     2. The Bank has compiled a Conflicts of Interest Management Policy* to identify and categorize transactions that may unfairly impair customers' interests, and has established an integrated conflict of interests management system for all its Group

companies.

1. • URL: https://www.nantobank.co.jp/riekisouhan/
2. Clarification of fees, etc.
   (1) As concerns fees and commissions of any kind to be borne directly or indirectly by customers and remuneration received by the Bank from financial product providers or others, the Bank explains the fees and remuneration and the type of service provided in detail in an easily understood manner.
3. Easily understood provision of important information
   (1) Since the information customers already have differs from person to person, we explain the important information* required by individual customers in detail while checking the customer's level of understanding.
4. • Important information includes risks, returns, and costs of products and services, availability of a cooling-off period, conditions for redemption or cancellation, target customers for the product concerned, and reasons for our determination that a proposed product is best suited for the present customer in light of the customer's intentions and needs as well as the particulars of any potential conflicts of interest with the customer and their possible impact on transactions and business operations.
5. Provision of services appropriate to customers
   (1) We draw on knowledge acquired through dialogue with customers to support their asset development by providing optimal financial products and services tailored to the individual.
   (2) We provide financial education and seminars to improve customers' financial knowledge.
   (3) We take care to provide detailed after-sales services to encourage customers to continue doing business with us over the long term.
6. Efforts to motivate employees and establish a customer-first corporate culture
   (1) We educate all our executive officers and employees to share and practice a customer-oriented mindset and to reflect this in our corporate culture.
   (2) Among efforts to motivate employees, we have introduced a performance evaluation system that recognizes initiatives that truly meet customers' needs and interests.

54 Nanto Report 2022, the integrated report of Nanto Bank

Business model

Performance

Community engagement

Crowdfunding

The Nanto Bank Group interconnects the diverse future aspirations of individuals, organizations, and communities by deploying crowdfunding to meet customers' financing needs.

In the past, we have mainly devoted the funds to shrines and temples, but we are accelerating our support for local arts, hospitals, food and beverage providers, and tourism facilities.

Results

Fiscal year	Number of cases	Amount raised	Crowdfunders (titles omitted)
(thousand yen)
2020	1	17,182	Religious Corporation Shorinji Temple (first round)
			Religious Corporation Shorinji Temple (2nd round)
			Shorinji Temple Religious Corporation (3rd round)
2021	6	88,033	Religious Corporation Myohoji Temple (Daishisanji Temple)
Religious Corporation Kongosanmai-in Temple
			Religious Corporation Daianji Temple
			General Incorporated Association Natsukashii Mirai Creator
			Certification Association
2022			Religious Corporation Horyuji Temple
3	147,400	Religious Corporation Saidaiji Temple
(as of July 15)
		Yamatokoriyama City Watamachi Nicoichi Tenement Project

Nanto Bank

Consultation	Customer
		Business alliance
	introduction
Introduction of
crowdfunding companies

Customer		Crowdfunding	Supporters
(crowdfunding	Concept	operator
company)	Crowdfunding site	Funds
publication
		Returns

Donations using trusts

To meet the need for donations of inherited property to local governments and others, we have concluded an "Agreement on Donations Through Trusts Instead of Wills" with 36 municipalities, five educational institutions, and various other organizations. Use of the Nanto Anshin Todokeru Trust for Family Happiness (donation course) enables heirs to donate a portion of their inherited property to municipalities, educational institutions, and other organizations with which agreements have been concluded without creating a will.

Agreement signatories (as of March 31, 2022)

		Asuka Village	Ando Town	Ikaruga Town	Ikoma City	Uda City	Oji Town
	PrefectureNara	Oyodo Town	Kashiba City	Katsuragi City	Kawai Town	Kawakami Village	Kawanishi Town
Municipalities
Totsukawa Village	Nara City	Higashiyoshino Village	Heguri Town	Miyake Town	Yamazoe Village
		Kanmaki Town	Koryo Town	Gojo City	Gose City	Sakurai City	Sango Town
		Shimoichi Town	Shimokitayama Village	Soni Village	Takatori Town	Tawaramoto	Tenri City
		Town
		Yamatokoriyama City	Yamatotakada City	Yoshino Town
	Kyoto Prefecture	Ide Town	Kizugawa City	Seika Town
Educational	Religious Corporation Kinpusenji Temple, Social Welfare Corporation Nara Prefectural Council of Social
Welfare, Public University Corporation Nara Medical University, National University Corporation Nara
institutions, etc.
Institute of Science and Technology, Religious Corporation Horyuji Temple

Nanto Anshin Todokeru Trust for Family Happiness [donation course] Product plan

(1) At time of application

(2) In the event of inheritance

Nanto Bank

Product application

(trustee)

Applicant

Nanto Bank

Trust foundation

(trustee and beneficiary)

(trustee)

management

Conclusion of trust

Notification of death

agreement

Agreement

Communication of

Agreement

Payment of trust funds

application details

Designation

Notifier of death

Municipality, etc.

Municipality, etc.

* In principle, the

Notifier of death

(second beneficiary)

applicant's designated

(second beneficiary)

heirs

• Donations under this agreement will be made using the "Family Happiness" product Nanto Anshin Todokeru Trust. For product details, please refer to the pamphlet "Nanto Anshin Todokeru Trust for Family Happiness.".

[About the Bequest Donation System]

We have expanded our services related to inheritance issues by concluding agreements with 16 municipalities and 14 educational institutions to participate in our bequest donation system.

When a donation is made by bequest to a municipality, educational institution, or other organization that has concluded an agreement with the Bank, our specialized staff are prepared to provide support for the preparation of wills and other documents concerned with bequests and inheritances to facilitate realization of the bequest applicant's wishes.

Agreement recipients (as of March 31, 2022)

	Ikoma City, Kashiba City, Kawai	Educational institutions,etc.
Municipalities	Town, Kawakami Village, Kawanishi
City, Ide Town, Kizugawa City, Seika
	Town, Kammaki Town, Sango
	Town, Tawaramoto Town, Tenri
	City, Nara City, Yamazoe Village,
	Yamatokoriyama City, Yamatotakada
	Town

National University Corporation Kyoto University, Public Interest Incorporated Foundation Kyoto University iPS Cell Research Foundation, Religious Corporation Kimpusenji Temple, Educational Corporation Tezukayama Gakuen, Educational Corporation Tenri University, Public Interest Incorporated Foundation Tenri Yorozu Consultaion Center, Educational Corporation Doshisha, Social Welfare Corporation Nara Prefectural Council of Social Welfare, Public University Corporation Nara Medical University, National Institute of Technology Nara College, National University Corporation Nara Women's University, National University Corporation Nara Institute of Science and Technology, Incorporated Administrative Agency Nara National Institute of Cultural Properties, Religious Corporation Horyuji Temple

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Support for Value Creation

Stakeholder Engagement

Strengthening contacts with the community through social contributions

Promotion of financial and economic education

We provided on-site work experience classes and work experience for local junior high school students to help them acquire basic knowledge about monetary matters.

SDG seminar

We endorsed the efforts of SDGs Land

• Mirai Akaruku, an event for younger elementary school students organized by the Nara Junior Chamber of Commerce and Industry to raise awareness of the SDGs and organized an exhibit at the event.
  Approximately 1,500 people attended the event and deepened their understanding of the SDGs with their families.

Nanto Scholarship Society

The Nanto Scholarship Society offers scholarships for high school and university students of outstanding character and academic ability who reside in Nara Prefecture. As of March 2022, the society had provided scholarship support for 1,461 students since its establishment in 1964.

Cherry Blossom Preservation Society

The Bank participates as a special member of the Yoshino Cherry Blossom Preservation Society, which was established cooperatively by the public and private sectors to protect the Shiroyama Sakura cherry trees (approx. 30,000 trees) on World Heritage Site Yoshino Mountain (Yoshino-cho, Nara Prefecture), which have shown signs of remarkable deterioration in recent years. As a regional financial institution, Nanto Bank cooperates actively with efforts to protect and nurture Yoshino's cherry trees by such means as dispatching volunteer staff to various related events.

The Magokoro no Issatsu Campaign

Each year, the Bank donates books contributed by its executive officers and employees to the Nara Training School for Juvenile Delinquents for distribution as Christmas presents.

This activity has been conducted since 1987 as part of our Magokoro no Issatsu Campaign for the purpose of contributing to the emotional education of young boys.

Besides recent popular works, the donated books include dictionaries, reference books, and other resources of high value for education.

Donations to the Nanto Manyo Charity Walk

Since the 70th anniversary of the Bank's founding in 2004, we have made annual donations to the Nanto Manyo Charity Walk to improve the welfare of residents of our regional community. Despite the cancellation of the walk to help combat the coronavirus in 2021, our donation was in the amount of 600,000 yen, unchanged from the previous year. The donations contribute to the operation of a children's cafeteria and the activities of volunteer groups.

Engagement with employees

Awareness raising

Unconscious bias training was conducted for all the Bank's executive officers and employees with the aim of countering attitudes concerning gender-based roles and other unconscious assumptions.

System improvement

As of April 1, we established a new maternity leave system for male employees and a fertility treatment leave system as well as expanding our childcare support systems.

NameOverview of the systems

[Newly established systems]

Male employee maternity leave system	Up to four weeks of paid childcare leave to be taken within eight weeks of the birth of a child
Fertility treatment leave system
Employees undergoing treatment for infertility are eligible for paid leave totaling up to 12 days a year.

[Expansion of various childcare support systems]

Extension of the period during which employees can benefit from such systems as shorter working hours related to childcare support

Expansion of the family support leave system

Expansion of the child nursing leave system

Employees raising a child up to junior high school age may work shorter hours.

Employees are eligible for five days of paid leave before and after the birth of a child (grandchild).

Employees who are caring for a child up to junior high school age may take five days of paid leave to care for the child.

Staff survey implementation

In its search for measures to improve management's engagement with employees, the Bank gathered a wide range of thoughts reflecting diverse values from its employees to help it visualize the issues in its organization and working environment.

56 Nanto Report 2022, the integrated report of Nanto Bank

Business model

Performance

Engagement with shareholders

Investor relations (IR) activities

The purpose of IR activities is to provide information shareholders and investors need to make investment decisions in a timely, continuous, and fair manner as a means of ensuring appropriate evaluation of companies in the capital markets. The Nanto Bank Group employs IR activities to explain its management strategies and financial results to its stakeholders. In fiscal 2021, the following initiatives were implemented through Web conferencing and teleconferencing due the spread of the new coronavirus.

[IR Calendar]

July 2021

July

October

December

June 2022

June

Integrated report issued.

Publication of disclosure supplement (document volume)

Annual report (English) published.

Fiscal 2021 interim results briefing (large-scalein-person meeting) convened.

Fiscal 2021 full-year results briefing (large-scale meeting) streamed live.

134th Ordinary General Meeting of Shareholders

IR meetings	Publication of management information
Large meetings for	In addition to the
domestic and foreign	above presentations
institutional investors	of management
and analysts are held	information, we
twice a year.	publish an integrated
We also hold in-person	report and a mini-
and other meetings as	disclosure magazine
needed.	that introduce the
	Group's initiatives.

General Meeting of Shareholders

The 134th Ordinary General Meeting of Shareholders was held at Hotel Nikko Nara on June 29, 2022.

The meeting was also streamed live over the Internet to enable shareholders to view it from their homes and other locations.

We are committed to the following activities to promote constructive dialogue with our shareholders.

1. Dialogue with shareholders

To assure constructive dialogue with shareholders, the Director of the Corporate Planning Department, who oversees the Bank's IR activities, plays a central role by participating actively in the dialogue.

2. Internal structure facilitating dialogue

The Corporate Planning Department responsible for IR activities has established a system of compiling information from the relevant departments and providing the appropriate information to shareholders.

3. Means of dialogue other than individual meetings

IR activities are conducted as needed to provide shareholders with explanations. We will continue to enhance our disclosure activities and to disseminate information widely by posting it on our website.

4. Feedback on shareholder opinions, etc.

The Director of the Corporate Planning Department provides management with feedback concerning opinions obtained through dialogue with shareholders at meetings of the Board of Directors and other meetings as appropriate.

5. Management of insider information

The Bank's basic policy is to disclose information in a fair, timely, and appropriate manner. It has accordingly established internal rules for prevention of insider trading and has put a strict information management system in place.

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