Policies & Guidelines

We will contribute to the realization of a sustainable society by walking hand in hand with local communities and growing together with them. Through a wide range of business activities, we will address diverse challenges and put into practice initiatives that enhance regional value.

The Group recognizes the conservation of the global environment as an important management issue in contributing to the realization of a sustainable society. Through its business activities, the Group strives to minimize environmental impacts and responds flexibly to public policies and regulations, thereby working to preserve the global environment for future generations.

The Group complies with environmental laws and regulations and fulfills its social responsibilities. In addition, the Group supports the following international norms, principles, and initiatives:

• Paris Agreement
• Recommendations of the Task Force on Climate-related Financial Disclosures / TCFD
• Recommendations of the Taskforce on Nature-related Financial Disclosures / TNFD
• Principles for Financial Action for the 21st Century
• CDP

This policy applies to all officers and employees of the Group. This policy also applies to all business activities of the Group, and we will thoroughly ensure consideration for the environment in all services provided by the Group.

The Group regularly sets environmental targets and formulates concrete action plans to achieve them. Progress toward these targets is periodically evaluated and reviewed as necessary.

The Group promotes the provision of environmentally conscious products and services. Specifically, the Group engages in investment and financing for environmentally related projects and provides customers with solutions that contribute to environmental sustainability, thereby supporting sustainable business models. In addition, the Group appropriately assesses environmental risks and endeavors to reduce such risks across the Group.

The Group recognizes that climate change poses a threat not only to the global environment but also to people’s lives and corporate activities, and that appropriate responses are required. Through its business activities and other initiatives, the Group promotes the transition toward a decarbonized society.

The Group recognizes the conservation of biodiversity as an important issue and assesses the impacts of its business activities on biodiversity. The Group promotes initiatives aimed at biodiversity conservation and endeavors to preserve regional ecosystems.

The Group promotes concrete initiatives such as resource conservation, energy conservation, efficient energy use, and waste reduction, thereby striving to reduce environmental impacts.

The Group provides education and training on environmental matters to its employees in order to enhance environmental awareness. The Group endeavors to ensure that each employee understands the importance of environmental conservation and can apply this understanding in daily operations.

The Group regularly reports and manages its environmental initiatives and progress through the Sustainability Promotion Committee. These matters are then reported to the Board of Directors via the Group Management Executive Committee, where appropriate oversight is exercised. This Environmental Policy has also been approved by the Board of Directors.

The Group discloses information on environmental initiatives, progress, and results with transparency. In addition, the Group engages in ongoing dialogue with stakeholders regarding initiatives based on this policy and seeks to continuously enhance its environmental initiatives.

Yamaguchi Financial Group and its group companies (hereinafter referred to as the “Group”) have established the “Environmental and Socially Responsible Investment and Financing Policy” regarding investment and financing for specific sectors that may have negative impacts on the environment and society, and we strive to reduce and avoid impacts on the environment and society.

Notably, since the policy was established in May 2022, we have not conducted any investment or financing that violates the policy.

We will actively support the following businesses toward the realization of a sustainable environment and society.

1. Businesses that contribute to initiatives for revitalizing local communities and economies
2. Businesses that contribute to climate change mitigation toward achieving carbon neutrality
3. Businesses that contribute to the preservation of cultural properties such as World Heritage sites and tangible and intangible cultural assets
4. Businesses that contribute to disaster prevention and mitigation

If we recognize risks or negative impacts on the environment or society regarding the following businesses, we will not provide investment or financing.

1. Businesses that violate the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES; the Washington Convention)
   *We will give due consideration to reservations made by each country.
2. Businesses that have negative impacts on wetlands designated under the Ramsar Convention
3. Businesses that have negative impacts on UNESCO-designated World Heritage sites
4. Businesses in which human rights violations—such as child labor or forced labor that run counter to the intent of international human rights standards—are taking place
   *Regarding human rights, we will respond in accordance with the Group’s “Human Rights Policy.”

For sectors that may have significant impacts on the environment and society, we will make appropriate investment and financing decisions based on the following policies.

1. Coal-fired Power Generation
   Coal-fired power generation is said to emit larger amounts of greenhouse gases and air pollutants than other power generation methods, and concerns about climate change and air pollution may increase.
   We will not provide investment or financing where the use of funds is the construction of new coal-fired power plants or the expansion of existing power plants.
   However, we will examine on a case-by-case basis transitions to high-efficiency coal-fired power generation using new technologies such as CCUS*1.
2. Development and manufacture of inhumane weapons such as nuclear weapons and cluster munitions
   Nuclear weapons, cluster munitions, biological and chemical weapons, and anti-personnel landmines are recognized by the international community as raising significant humanitarian concerns. In light of the inhumane nature of these weapons, we will not provide investment or financing for businesses where the use of funds is the manufacture of such inhumane weapons.。
3. Palm Oil Plantation Development
   While palm oil is an important raw material essential to daily life, the development of palm oil plantations may have significant negative impacts on the environment and society, including impacts on biodiversity and climate change due to the logging of natural forests and slash-and-burn practices on peatlands, as well as human rights violations such as child labor and forced labor.
   When considering financing initiatives for palm oil-related businesses, we will respond carefully by confirming the customer’s implementation status of environmental and social considerations and the status of obtaining international certifications such as RSPO certification*2.
4. Large-scale Deforestation
   Large-scale deforestation may cause various problems, including negative impacts on biodiversity and ecosystems, as well as negative impacts on climate change due to reduced CO₂ absorption and storage functions.
   When considering investment or financing for businesses involving large-scale deforestation, we will respond carefully by confirming the implementation status of environmental considerations and the status of obtaining international certifications such as FSC certification*3 and PEFC certification, etc.*4.   

The Group will clarify its approach to the purchase of goods and services necessary for business activities and the determination of prices such as construction costs (hereinafter referred to as “procurement and purchasing activities”) toward the realization of a sustainable society, and will strive for responsible procurement and purchasing activities that consider the environment and society.

In addition, we will disclose this policy to the public, and for suppliers of goods and services (hereinafter referred to as “suppliers”), we will seek understanding and cooperation regarding this policy with the aim of mutual development and will strive for collaborative initiatives.

The Group will conduct procurement and purchasing activities with a high sense of ethics, complying not only with laws and rules but also with social norms. We will also have no relationship with anti-social forces and will reject unreasonable demands.

This policy covers goods, services, and the like that the Group procures and purchases.

The Group will fully consider the necessity of procurement and purchasing and will endeavor to procure and purchase preferentially from suppliers who strive to comply with laws and regulations and to consider human rights and the environment, in addition to quality and economic rationality.

The Group will select suppliers in a fair and impartial manner based on quality, service content, economic rationality, compliance with delivery deadlines, compliance status with laws and regulations, consideration for human rights and the environment, information management, and the like.

In addition, we will maintain sound and transparent relationships with suppliers. Therefore, we will not give or receive entertainment or gifts with suppliers that would be contrary to social norms.

The Group will strictly manage suppliers’ confidential information obtained through procurement and purchasing activities.

In procurement and purchasing activities, the Group will respect fundamental human rights, consider occupational safety and health, and strive to do business with suppliers that do not engage in human rights violations such as unjust discrimination, forced labor, or child labor.

The Group will promote initiatives to reduce environmental burden and will strive for procurement and purchasing that contribute to environmental conservation—such as addressing climate change and biodiversity—and to reducing environmental burden.

The Group will strive to build relationships of trust through mutual understanding with suppliers.

With a view to realizing a sustainable society, the Group clarifies its approach to the purchase of goods and services necessary for business activities and to the determination of prices for construction and other costs (collectively, “procurement and purchasing activities”), and strives to conduct responsible procurement and purchasing activities with due consideration for the environment and society.

The Group makes this policy publicly available and, with the aim of mutual development, requests suppliers and other providers of goods and services (the “Suppliers”) to understand and cooperate with this policy and strives to work collaboratively with them.

The Group conducts procurement and purchasing activities with a high level of ethical standards, in compliance not only with laws and internal rules but also with social norms. The Group will not associate with anti-social forces and will reject any unjust demands.

This policy applies to goods, services, and other items procured or purchased by the Group.

The Group fully considers the necessity of procurement and purchasing and, in addition to quality and economic rationality, strives to procure and purchase on a preferential basis from Suppliers that endeavor to comply with laws and regulations and to consider human rights and the environment.

In selecting Suppliers, the Group conducts fair and impartial evaluations based on quality and service content, economic rationality, adherence to delivery schedules, compliance with laws and regulations, consideration for human rights and the environment, information management, and other relevant factors.

The Group maintains sound and transparent relationships with Suppliers. Accordingly, the Group does not give or receive entertainment or gifts with Suppliers that would contravene social norms.

The Group strictly manages Suppliers’ confidential information obtained through procurement and purchasing activities.

In its procurement and purchasing activities, the Group respects fundamental human rights, gives due consideration to occupational safety and health, and strives to do business with Suppliers that do not engage in human rights violations such as unjust discrimination, forced labor, or child labor.

The Group promotes initiatives to reduce environmental burdens and strives to conduct procurement and purchasing that contribute to environmental conservation—such as addressing climate change and biodiversity—and to reducing environmental impacts.

The Group strives to build relationships of trust with Suppliers through mutual understanding.

We believe that the active participation of women is essential for Yamaguchi Financial Group to continue growing and being valued by the community. We will work to create a workplace where women can shine by making the most of their individuality.

Accordingly, we will place particular emphasis on the following initiatives:

• Assignment of work based on each individual’s abilities and aptitudes, regardless of gender
• Enhancement of flexible work styles in line with each person’s life planning and career aspirations
• Reforming the mindset of male managers (fostering a mindset of supporting growth; eliminating fixed assumptions regarding assigned duties)
   

Current Status of Initiatives

We are working to expand the occupational fields available to women, with the aim of moving away from traditional fixed gender role divisions and becoming a company where all employees can demonstrate their individuality.
Among male managers as well, fixed notions regarding gender roles have been removed, and awareness has increased in support of women’s active participation across diverse occupational fields.

In order to create an environment in which women can work comfortably, we support work–life balance by promoting the introduction and use of flextime, paid leave, childcare leave, and shorter working hour arrangements.
In our career-track HR system for core employees, mutual transfers between the nationwide transfer track and the region-limited transfer track are permitted at any time. In addition, mutual transfers between core employees and business staff who mainly handle routine work are also permitted, thereby establishing HR systems that enable flexible work styles suited to each person’s life planning and career aspirations.

1. Plan period:
   April 1, 2021 to March 31, 2026 (five years)

2. Targets
   ・Increase the percentage of women active in sales divisions and non-financial divisions
   ・Raise the percentage of female employees in managerial positions to 10% or more
   ・Reduce average monthly overtime hours to 10 hours or less through the use of flexible work styles such as flextime
   ・In the future, aim for 100% childcare leave uptake for all genders and childcare leave of at least one month
    
3. Information Disclosure Related to the Promotion of Women’s Empowerment
   ・Percentage of female employees in managerial positions: 4.5% (as of the end of March 2023)
   ・Average overtime hours per employee per month: 12.3 hours (FY2022)

Recognizing that value co-creation with diverse stakeholders—including not only shareholders but also customers, local communities, employees, business partners, and creditors—is important in corporate management, we will work to collaborate appropriately with multiple stakeholders.
From the perspective that appropriately distributing profits and outcomes generated through value co-creation and improved productivity to multiple stakeholders leads to maintaining momentum for wage increases and sustaining economic development, and recognizing the importance of returning value to employees and giving due consideration to business partners, we will advance the following initiatives.

We will focus on maximizing added value by achieving sustainable growth and improving productivity through the use of digital technologies, including concentrating management resources in growth areas and developing employees’ capabilities and skills.
Based on the profits and outcomes generated, and in accordance with the fundamental principles of wage determination, we will raise wages at an appropriate time and in an appropriate manner taking into account social conditions and the Company’s circumstances. In addition, as comprehensive improvements to overall employee treatment, we will actively invest in human capital and provide education and training, etc., to enhance employee engagement and further improve productivity, thereby aiming for sustainable returns to employees.

(Specific items)

Specifically, we will engage in sincere dialogue between labor and management regarding wage increases. With respect to human capital investment and education/training, we will enhance recruitment and development to enable diverse talent to thrive, create environments and opportunities where employees can work energetically, and support each individual’s growth with a sense of purpose, thereby working toward “maximizing value provided to the region and customers” and “creating new value.”

We will continue to work to comply with the Partnership Building Declaration.

If the posting of the Partnership Building Declaration is discontinued on the portal site, we will voluntarily withdraw the publication of this Multi-Stakeholder Policy.

• Partnership Building Declaration URL
  https://www.biz-partnership.jp/declaration/47984-11-00-yamaguchi.pdf

We will also work to build appropriate relationships with tax-exempt businesses with respect to consumption tax, referring to the government’s published views, etc., on how tax-exempt businesses and their business partners should respond to the invoice system.

We uphold “Co-creating a prosperous future for the region” as our purpose (reason for existence).
Based on this purpose, we will work together with local communities and grow together by addressing diverse challenges through various business activities, thereby contributing to enhancing regional value and realizing a sustainable society.

We will steadily advance these initiatives while monitoring progress.
 

March 31, 2025

Keisuke Mukunashi
President, Representative Director and CEO
Yamaguchi Financial Group, Inc.

The Group will sincerely address the items below in order to protect customers’ interests and enhance convenience, and will pursue continuous improvement so that business operations can be ensured from the customer’s perspective.

By encouraging upstream partners through our direct business counterparties (“Tier N” to “Tier N+1”), we will work to increase added value across the entire supply chain and, through collaboration that goes beyond existing business relationships and company size, aim to build co-existence and co-prosperity with our business partners.
In doing so, from the perspectives of business continuity in times of disaster and work-style reforms, we will also promote support such as advice on introducing telework and developing BCPs (Business Continuity Plans).

• Inter-company Collaboration
  The Group’s purpose is “to co-create a prosperous future for the region.” As a unified group, we will strive for regional development and future creation, aiming to become “a corporate group chosen by the region, responding to the region’s trust, and enhancing regional value.”
  Starting from our “business viability assessment activities,” we will engage with various challenges and needs in customers’ businesses and provide diverse solutions leveraging the Group’s comprehensive capabilities.
• IT Implementation Support
  We have established a “DX Strategy Department” and “Digital Promotion Office” at our head office to enhance customer convenience through digital solutions. By advancing internal DX as well, we will leverage successful experiences and accumulated know-how (including BPR and academic insights into leading-edge technologies) to help solve challenges faced by regional companies and other financial institutions.
• Talent Matching
  Through proposals for diverse talent utilization via our group company YM Career Co., Ltd., we will support the growth and revitalization of regional companies from the “human resources” perspective, thereby enhancing regional value and contributing to a sustainable society.
• Enhancing Sustainability
  We will support customers’ sustainability management by providing financing such as Sustainability-Linked Loans, Green Loans, Social Loans, and Sustainable Loans for initiatives that contribute to improved sustainability.

We will comply with the “Promotion Standards” (desirable transaction practices under the Act on Promotion of Subcontracting SMEs) and proactively work to correct transaction practices and commercial customs that hinder partnership building with business partners.

• These terms apply to all users of the official social media accounts operated by Yamaguchi Financial Group (the “Company”) (the “Accounts”).
• By using the Accounts, users are deemed to have agreed to these terms.
• The Company may revise these terms without obtaining prior consent from users or providing notice after the fact. The revised terms will take effect when posted on the Company’s website.

Yamaguchi Financial Group will walk and grow together with local communities, address diverse challenges through various business activities, and contribute to realizing a sustainable society by enhancing regional value.
Purpose (the Group’s mission and reason for existence): To co-create a prosperous future for the region
Vision (the Group’s desired future state): A corporate group chosen by the region, responding to the region’s trust, and enhancing regional value
 

Established on August 23, 2022

Keisuke Mukonashi
Representative Director, President & CEO
Yamaguchi Financial Group, Inc.

Yamaguchi Financial Group, Inc. has adopted the “Principles for Customer-Oriented Business Conduct” published by Japan’s Financial Services Agency in March 2017 and hereby establishes and publishes the “YMFG Policy on Customer-Oriented Business Operations (Fiduciary Duty).”

Under this policy, the Group will work to enhance and improve products and services that contribute to customer-oriented practices, and will periodically disclose the status of these initiatives.

In addition, we will periodically review this policy to achieve better business operations.

• We conduct daily activities with “Co-creating a prosperous future for the region” as our mission and purpose, aiming to be “a corporate group selected by the community, meeting the community’s trust, and enhancing regional value.”
• By leveraging the Group’s comprehensive capabilities, we will respond to increasingly diverse customer needs and, through attentive consulting, support improvements in the quality of life of customers in the region.
• By accurately understanding customer needs through dialogue and other means, we will conduct our business sincerely and fairly with a high level of expertise and professional ethics, and strive to realize customers’ best interests.

• We will propose appropriate products and services based on each customer’s situation (needs and objectives, financial knowledge, transaction experience, overall asset status, risk tolerance, etc.).
• To enable customers to appropriately select products and services, we will provide important information in an easy-to-understand manner using product brochures, portfolio proposal tools, important information sheets (describing product details, characteristics, fees, etc.), and other materials.
  In particular, when selling or recommending products to elderly customers or customers with limited transaction experience, we will provide more careful explanations.
• To accompany customers over the long term, we will confirm customers’ goals, life plans, and changes in asset conditions, and provide periodic after-sales follow-up as well as timely and appropriate information when market conditions change significantly.
• When proposing risk-bearing financial products, we will appropriately explain comparisons with other financial products.
  In addition, as necessary, we will present an optimal portfolio and then select and propose products accordingly.
• To contribute to improving financial literacy in the region, we will enhance financial education, seminars, and various digital content offerings.

• To meet various needs according to diverse customer objectives, asset conditions, risk tolerances, etc., we will offer a broad lineup of products and services.
• We will develop, sell, and recommend products and services that contribute to customers’ asset building and related goals.
  We will actively collect customer feedback and utilize the results to improve services and enhance our product lineup.
• To realize customers’ best interests, sales companies and asset management companies will share information in accordance with product characteristics such as complexity and risk.
  Through information sharing, we will verify whether the assumed customer profiles match those of customers who actually purchased the products and, as necessary, improve product offerings.
• We will not sell products such as structured bonds that cannot be said to contribute to medium- to long-term asset building.

• When providing products and services to customers, we recognize the potential for conflicts of interest and will manage them appropriately.
• We will monitor and verify whether proposals reflect customer intentions and whether sufficient explanations are provided when offering products and services.

We will strive to develop performance evaluation systems that contribute to customer-oriented business operations.

To develop highly skilled personnel, we will establish training structures, standardize and share consulting methods, and accumulate know-how as an organization.

The Yamaguchi Bank, Ltd.; The Momiji Bank, Ltd.; The Kitakyushu Bank, Ltd.; YM Securities Co., Ltd.

Notes

* For YMFG Growth Partners Co., Ltd. and YM Asset Management Co., Ltd. within the Group, we will establish separate policies and initiatives taking into account their business characteristics.

End of Document

For the status of initiatives based on the YMFG Policy on Customer-Oriented Business Operations (Fiduciary Duty), please see here.

In order to protect customers’ interests and enhance convenience, the Group will sincerely address the items below and pursue continuous improvement so that business operations can be ensured from the customer’s perspective.

1. In transactions with customers, we will strive to acquire product knowledge so that customers can select and use the Group’s products and services based on their own intentions, provide accurate and appropriate information, and make proper solicitations and explanations based on laws and regulations so that customers can understand and be satisfied.
2. We will respond appropriately and sufficiently to customer inquiries and complaints with sincerity, and will examine and improve our operations from the customer’s perspective to enhance customer satisfaction.
3. We will appropriately obtain customer information in accordance with laws and regulations and manage it safely by taking appropriate measures to prevent unauthorized access, leakage, and other incidents.
4. When outsourcing the Group’s work related to customer transactions to external parties (including group companies), we will limit contractors to those capable of performing the work appropriately and will properly manage contractors, including conducting periodic or as-needed monitoring, to protect customer information and other interests.
5. To ensure appropriate and fair transactions with customers, in transactions conducted by the Group’s affiliated companies we will appropriately manage information related to business execution and properly monitor operational status, thereby preventing transactions that may unjustly harm customers’ interests.

• In this policy, “customers” means “those who transact with the Group and those considering transactions in the future.”
• In this policy, “transactions” means “all transactions conducted as business between customers and the Group, including credit transactions (loan agreements and related collateral/guarantee agreements), acceptance of deposits, and the sale, intermediation, and solicitation of products.”

The Company places the highest priority on the trust of our customers. In accordance with the policies set forth below, we strictly manage customer information and comply with applicable laws and regulations, including the Act on the Protection of Personal Information (the “APPI”) and the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures (the “My Number Act”), and we hereby declare our commitment to maintaining accuracy and confidentiality and ensuring security.

The Company acquires and uses personal information by lawful and appropriate means.
In order to conduct transactions with customers safely and reliably and to provide better services, we collect only the minimum necessary information relating to customers.
Such information is used for purposes such as providing information to customers and corporate management, and will not be used beyond the scope necessary to achieve the purposes of use.
The specific purposes of use are as follows.

• Business Activities
  • Management of banks and other companies that may be made subsidiaries under the Banking Act
  • All operations incidental or related to the above (including operations that may be permitted in the future)
  • Operations that a bank holding company may conduct under the Banking Act
• Purposes of Use
  For corporate management and related purposes concerning the Company and its subsidiaries, we use personal information for the following purposes.
  Where the purpose of use of certain personal information is limited by laws and regulations, such information will not be used for any purpose other than the specified purpose.
  • To provide personal information to third parties to the extent necessary for the proper performance of operations, such as improving management efficiency, strengthening management controls, and risk management
  • To properly perform entrusted operations where the Company is commissioned by another business operator, etc. to process all or part of personal information, or where the Company is appointed as an agent of another business operator, etc.
  • To enter into and perform contracts with customers, etc., to exercise rights and perform obligations under laws and regulations, or to respond to requests from national government agencies, local public bodies, etc.
  • For market research, data analysis, statistical understanding, and surveys to identify needs, and for research and development of financial products and services, etc.
  • To make various proposals regarding financial products and services, such as sending direct mail
  • To make proposals regarding, or provide, products and services of affiliated companies and partner companies, etc.
  • For various transactions and post-transaction processing and management
  • To ensure smooth operation of organizations established or joined by the Company, and to perform management functions required for internal control, such as performance monitoring and human resources matters within the Company
  • For shareholders of the Company, to properly perform rights and obligations relating to shareholders
  • For reporting to and communicating with financial authorities and external organizations, etc.
  • For settlement-related administration, audit operations, fire prevention and crime prevention, proper execution of internal administrative processing, and quality control, etc.
  • For any other purposes necessary to properly and smoothly perform transactions with customers, etc., including records of communications and negotiations with customers, etc.

In accordance with Article 13-6-6 of the Enforcement Regulations of the Banking Act and other relevant provisions, information regarding a fund demander’s ability to repay borrowings that we receive from personal credit information agencies will not be used or provided to third parties for any purpose other than investigating the fund demander’s ability to repay.
In accordance with Article 13-6-7 of the Enforcement Regulations of the Banking Act and other relevant provisions, “special non-public information,” such as information regarding race, creed, social status, domicile of origin, healthcare, or criminal record, will not be used or provided to third parties for purposes other than those deemed necessary for appropriate business operations.
The Company specifies purposes of use in concrete terms to ensure that they are clear to customers. For example, when collecting responses to surveys, we endeavor to limit the purposes of use according to the collection context, such as using the information solely for aggregating survey results.

Notwithstanding the above, the Company handles customers’ Individual Numbers (a 12-digit number obtained by converting the resident record code, which is used to identify a specific individual) only to the extent necessary to achieve the purposes of use. We will not use Individual Numbers for any purpose other than those permitted under the My Number Act.

The specific purposes of use are as follows.

The Company uses customers’ Individual Numbers for the following purposes.

• For preparing payment records and related documents required by laws and regulations.

Information we receive from customers generally includes the customer’s name, address, date of birth, telephone number, workplace information, and, for shareholders, the shareholder’s name, address, telephone number, number of shares held, and similar information. In addition, for purposes such as managing companies that may be made subsidiaries under the Banking Act, we may collect information held by our subsidiaries.

With adequate security control measures in place, the Company collects customers’ personal information, for example, as follows.
Examples:
When personal information is provided directly through documents such as application forms and contracts relating to transactions
When personal information is provided by joint users (such as subsidiary banks) whose joint use has been publicly announced, or by contractors (counterparties to whom the Company provides services)

When personal information is provided by third parties based on the customer’s consent

When acquiring personal information, the Company makes the purposes of use publicly available in advance by posting them in this Personal Information Protection Policy (Privacy Policy).
If the purposes of use have not been publicly announced in advance, we will, unless special circumstances apply, notify the individual of the purposes at the time of acquisition or promptly make them public.
In addition, when the Company directly acquires personal information from the individual that is stated in contracts or other written documents in connection with entering into a contract with the individual, we will, unless special circumstances apply, clearly indicate the purposes of use or obtain the individual’s consent to the purposes before using the information.

Except as permitted by laws and regulations, the Company will not provide customer information to external third parties without completing necessary procedures such as obtaining the customer’s consent.

The Company may outsource the handling of personal data, for example, in the following cases.
Examples of outsourced operations:

Operations related to the issuance and administration of shares

The Company takes appropriate measures at all times to keep customer information accurate and up to date.
We also take thorough security control measures to prevent unauthorized access to, destruction of, alteration of, or leakage of customer information. (Examples of security control measures implemented are as follows.)

1. Formulation of Basic Policies
   To ensure proper handling of personal data, the Company has formulated basic policies regarding compliance with applicable laws, regulations, and guidelines, and the establishment of contact points for inquiries and complaint handling, among others.
2. Development of Rules and Procedures for Handling Personal Data
   To protect customer information (including Individual Numbers), the Company has established relevant rules and procedures, such as the “Information Asset Management Regulations” and “Information Management Control Standards,” and conducts periodic reviews.
3. Organizational Security Control Measures
   The Company has established an information management department and appoints the responsible executive as the Chief Information Management Officer, and also appoints information management officers in all divisions to ensure appropriate management of customer information.
4. Personnel Security Control Measures
   The Company provides employee training on the protection of customer information and appropriate management methods, and thoroughly ensures proper handling.
5. Physical Security Control Measures
   In areas where personal data is handled, the Company controls employees’ entry and exit and restricts devices and other items brought in, and implements measures to prevent unauthorized persons from viewing personal data.
   The Company also implements measures to prevent theft or loss of equipment, electronic media, and documents that handle personal data, and takes measures to prevent information from being taken outside the office, including during internal transfers.
6. Technical Security Control Measures
   The Company implements access controls to limit authorized personnel and the scope of personal information databases and similar systems that they may handle.
   The Company has introduced mechanisms to protect information systems that handle personal data from unauthorized external access and malicious software.

If a customer makes any of the following requests regarding personal data held by the Company relating to the customer, we will respond after confirming the identity of the customer or confirming that the request is made by a duly authorized representative. Requests for disclosure, etc. require the Company’s prescribed procedures. For details, please contact our Compliance Department.

Notification of the purposes of use of retained personal data (a fee of JPY 550 (tax included) will be charged per request)

Disclosure of retained personal data (a fee of JPY 1,100 (tax included) will be charged per request)
Disclosure of records of provision to third parties (a fee of JPY 1,100 (tax included) will be charged per request)

Correction, addition, or deletion due to the content of retained personal data being inaccurate
Suspension of use or deletion of retained personal data, or suspension of provision to third parties, on the grounds that the Company uses the data beyond the scope necessary to achieve the specified purposes of use, or that the data was acquired by deception or other improper means
Suspension of handling based on the customer’s request not to receive product information via direct mail, telephone calls, etc. from the Company
Suspension of provision to third parties on the grounds that the Company provides retained personal data to third parties without completing necessary procedures such as obtaining the customer’s prior consent
Suspension of use or deletion of retained personal data, or suspension of provision to third parties, on the grounds that the Company no longer needs to use the customer’s information
Suspension of use or deletion of retained personal data, or suspension of provision to third parties, on the grounds that an incident specified in the main clause of Article 26(1) of the APPI has occurred at the Company
Suspension of use or deletion of retained personal data, or suspension of provision to third parties, on the grounds that the customer’s rights or legitimate interests may be harmed
Representatives who may make these requests on behalf of the individual are as follows.

1. A legal representative of a minor or an adult ward (submission of verification documents such as a certified copy of an adjudication is required)
2. A representative appointed by the individual (in addition to the Company’s prescribed request form, submission of the Company’s prescribed power of attorney is required; however, responses will be addressed to the individual)

The Company takes every precaution to prevent leakage of customer information; however, if customer information is leaked, we will notify the customer as a measure to protect the customer’s rights and interests in accordance with the APPI and its Enforcement Rules.

The Company makes every effort to protect personal information and will respond sincerely to inquiries and complaints regarding our handling of personal information.
Inquiries and complaints regarding the handling of personal information are handled by the Company’s Compliance Department.

Yamaguchi Financial Group, Inc., Compliance Department

 4-2-36 Takezakicho, Shimonoseki, Yamaguchi, Japan

TEL: 083-223-5511

Business hours: 9:00–17:30 (excluding bank holidays)

The Company is a member of the organization listed below, which is an authorized personal information protection organization certified under the APPI.
This organization accepts complaints and consultations regarding member companies’ handling of personal information.
The Japanese Bankers Association’s Personal Information Protection Council (as listed) http://www.abpdpc.gr.jp/

TEL: 03-5222-1700, or your nearest bank transaction consultation office

Established on October 2, 2006
Revised on November 16, 2015
Revised on August 13, 2018
Revised on October 1, 2019
Revised on April 1, 2022

The Company places the highest priority on the trust of our customers. In accordance with the basic policies below, we strictly manage personal data, comply with applicable laws, regulations, and standards including the Act on the Protection of Personal Information, and declare our commitment to ensuring appropriate security control of personal data.

In order to prevent unauthorized access to, destruction of, alteration of, or leakage of personal data, the Company implements strict security measures, including thorough detection of computer viruses using virus scanning programs on computers in use.
In addition, we establish and implement organizational frameworks and internal rules for the security control of personal data, and continuously review our management framework in response to changes in the information security environment and revisions to laws and standards regarding the security control of personal data, thereby striving to ensure appropriate security control of personal data.

The Company establishes a department responsible for system management and appoints the executive in charge as the Chief System Management Officer, and also appoints information system management officers in all divisions to implement the security control of personal data.

In order to implement the security control of personal data, the Company establishes relevant rules such as the “Information Asset Management Regulations” and “System Management Control Standards,” and thoroughly provides employee education regarding appropriate methods of managing personal data.

The Company makes every effort to ensure the security control of personal data; however, if you have any inquiries or complaints regarding the Company’s security control of personal data, our Risk Management Department will handle them and respond sincerely.

Yamaguchi Financial Group, Inc., Risk Management Department

4-2-36 Takezakicho, Shimonoseki, Yamaguchi, Japan

TEL: 083-223-5511

Business hours: 9:00–17:30 (excluding bank holidays)

Established on October 2, 2006
Revised on May 10, 2013

Pursuant to Article 27, paragraph (5), item (iii) of the Act on the Protection of Personal Information, the Company jointly uses customers’ personal data with The Yamaguchi Bank, Ltd., The Momiji Bank, Ltd., and The Kitakyushu Bank, Ltd.

For credit risk management, audits, and management purposes such as reporting to and communicating with financial authorities, and other matters incidental or related to the purposes stated above.

Branch code of the branch with which the customer transacts, customer number, name (in Kanji and Kana), date of birth, address (in Kanji and code), telephone number, postal code, industry (in Kanji and code), loan amount, repayment history, and other items of personal data necessary to achieve the purpose of use.

The Company Responsible for the Handling of Personal Data: Yamaguchi Financial Group, Inc.,President & Representative Director, Keisuke Mukunashi

4-2-36 Takezakicho, Shimonoseki, Yamaguchi, Japan

Established on October 2, 2006
Revised on April 1, 2022

The YMFG Group (Note*) conducts the following joint use in order to implement group-wide corporate management and risk management centered on Yamaguchi Financial Group, Inc., and to provide various high value-added financial products and services by strengthening collaboration among group companies (where joint use is restricted under relevant laws and regulations other than the Act on the Protection of Personal Information, such as the Financial Instruments and Exchange Act, we will handle such information in accordance with those laws and regulations).
(Note*) “YMFG Group” refers to Yamaguchi Financial Group, Inc., its consolidated subsidiaries, and its equity-method affiliates. The same applies hereinafter.

1. Purposes of Use by Joint Users
   (1) To appropriately carry out corporate management and various risk management as the YMFG Group, including identifying and managing various risks
   (2) To plan and develop various high-quality financial products and services provided by the YMFG Group
   (3) To make individual proposals and provide information regarding various financial products and services of the YMFG Group
2. Items of Personal Data to be Jointly Used
   (1) (Required) Persons who have experience relating to the business activities described above
   (2) (Required) Persons who have experience relating to the business activities described above
   (3) (Required) Persons who have experience relating to the business activities described above
   (4) (Required) Persons who have experience relating to the business activities described above
3. Scope of Joint Users
   Joint users shall be Yamaguchi Financial Group, Inc., and among its consolidated subsidiaries and equity-method affiliates as stated in securities reports, etc., those companies for which external notice has been made pursuant to Article 27, paragraph (5), item (iii) of the Act on the Protection of Personal Information.
4. Party Responsible for the Management of Personal Data
   Yamaguchi Financial Group, Inc.
   President and Representative Director: Keisuke Mukunashi
   4-2-36 Takezakicho, Shimonoseki, Yamaguchi, Japan
5. Suspension of Joint Use for Providing Financial Products and Services
   Of the joint use described herein, with respect to joint use for the provision of various financial products and services (items (2) and (3) under “Purposes of Use by Joint Users”), if a customer requests suspension of such joint use, we will promptly cease further joint use thereafter.

Contact:

Yamaguchi Financial Group, Inc., Compliance Department

TEL: 083-223-5511 (main)

Business hours: Mon–Fri 9:00–17:30 (excluding holidays and Dec 31–Jan 3, etc.)

The YMFG Group (Note*) will apply the same handling as the joint use of customers’ personal data described in “Joint Use of Personal Data” to customers that are corporations or unincorporated associations, etc., in order to implement group-wide corporate management and risk management centered on Yamaguchi Financial Group, Inc., and to provide various high value-added financial products and services by strengthening collaboration among group companies.
Where joint use is restricted under relevant laws and regulations other than the Act on the Protection of Personal Information, such as the Financial Instruments and Exchange Act, we will handle such information in accordance with those laws and regulations.
With respect to items (2) and (3) under “Purposes of Use by Joint Users” described in “Joint Use of Personal Data,” if a customer requests suspension of such joint use, we will promptly cease further joint use thereafter.
(Note*) “YMFG Group” refers to Yamaguchi Financial Group, Inc., its consolidated subsidiaries, and its equity-method affiliates.

Contact: 

Yamaguchi Financial Group, Inc., Compliance Department

TEL: 083-223-5511 (main)

Business hours: Mon–Fri 9:00–17:30 (excluding holidays and Dec 31–Jan 3, etc.)

End of Document

Our Group will set environmental targets on a regular basis and develop specific action plans to achieve them.
We will periodically assess progress toward these targets and revise them as necessary.

Our Group recognizes that climate change poses a threat not only to the global environment but also to people’s lives and corporate activities, and that appropriate responses are required.
Through our initiatives, including our business activities, we will promote the transition to a decarbonized society.

Our Group recognizes that climate change poses a threat not only to the global environment but also to people’s lives and corporate activities, and that appropriate responses are required.
Through our initiatives, including our business activities, we will promote the transition to a decarbonized society.

Our Group recognizes the conservation of biodiversity as an important issue and will assess the impacts of our business activities on biodiversity.
We will promote initiatives to conserve biodiversity and strive to protect local ecosystems.

Our Group will promote specific initiatives—such as resource conservation, energy saving, efficient energy consumption, and waste reduction—and strive to reduce our environmental impact.

Our Group will provide employees with environmental education and training to raise environmental awareness.
We will strive to ensure that each employee understands the importance of environmental conservation and can put it into practice in daily work.

Our Group’s environmental initiatives and progress will be regularly reported to and managed by the Sustainability Promotion Committee.
The matters will then be reported to the Board of Directors via the Group Executive Management Meeting, and will be subject to oversight.
This policy has also been approved by the Board of Directors.

Our Group will transparently disclose environmental information, including the progress and results of our environmental initiatives.
In addition, we will engage in ongoing dialogue with stakeholders regarding initiatives under this policy and continuously enhance our environmental efforts.

As law enforcement and penalties against bribery are being strengthened globally, Yamaguchi Financial Group, Inc., its consolidated subsidiaries, and equity-method affiliates have established the “Guidelines on the Prevention of Bribery,” which summarize matters that we ask our business partners to comply with in order to build the environment necessary to prevent bribery.
We ask for your understanding of the intent of these Guidelines and your cooperation.

Yamaguchi Financial Group, Inc., its consolidated subsidiaries, and equity-method affiliates (collectively, “YMFG”) will comply with anti-bribery laws and regulations applicable in the countries and regions where we operate and will conduct fair transactions.
We ask all business partners involved in YMFG’s business to understand the intent of these Guidelines and cooperate.
In these Guidelines, “business partners” include customers of YMFG companies, as well as service providers, service vendors, intermediaries, alliance partners, consultants, joint venture partners, contractors, suppliers, and others involved in YMFG’s business.

YMFG will not seek any benefit that can only be obtained through bribery or other improper means.
Business partners are requested, in transactions involving YMFG’s business, not to offer, promise, or approve the direct or indirect provision of entertainment, gifts, benefits, or other advantages (collectively, “money, etc.^*3”) to public officials or equivalent persons (“public officials, etc.^*2”), whether domestically or internationally, directly or indirectly, with the intention of influencing their official actions for the purpose of obtaining or maintaining business or business advantages related to YMFG ^*1.

*1 “Obtaining or maintaining business or business advantages” includes, for example:

• Simplification or acceleration of procedures
• Tax exemptions or reductions
• Obtaining permits and approvals
• Winning commercial transactions
• Obtaining favorable evaluations or reputation
• Obtaining confidential information
• Concealing wrongdoing or misconduct
• Overlooking legal violations
• Avoiding or reducing penalties, etc.

*2 “Public officials, etc.” include the following persons (regardless of country):

• Officials of governments, ministries, and local governments (including ministers, legislators, ambassadors, etc.)
• Officers and employees of state-owned enterprises and government-related entities
• Officers and employees of entities treated as public officials under laws and regulations
• Officers and employees of international organizations (e.g., the United Nations, the World Trade Organization)
• Political parties and candidates for public office
• Officers and employees of organizations performing public functions on behalf of the above (e.g., designated inspection/testing bodies), etc.

*3 “Money, etc.” include:

• Cash, vouchers, gift cards, loans, collateral, guarantees
• Invitations (sports events, theater, travel, etc.)
• Donations, sponsorship fees
• Honoraria, rebates
• Free use of houses/buildings
• Facilitation payments ^*4
• Job opportunities for the person or relatives, offering positions, etc.

*4 Facilitation payments

• These are small payments to public officials, etc. made solely to expedite routine administrative services. Such payments may undermine efficient government operations and, consequently, economic development and the rule of law, and are prohibited as bribery in many countries. YMFG prohibits facilitation payments.

YMFG will not seek any benefit that can only be obtained through bribery or other improper means.
Business partners are requested, regardless of country, not to offer, promise, or approve the direct or indirect provision of money, etc. to any third party for the purpose of obtaining or maintaining business or business advantages related to YMFG, with the intention of causing such third party to perform improper duties, as consideration for improper acts, or while recognizing that the receipt of money, etc. itself constitutes an improper act.

YMFG strictly prohibits bribery and collusion, including the receipt of personal compensation or commissions and borrowing money from customers. We do not accept gifts or entertainment that violate laws or social ethics. We appreciate your understanding and cooperation.

For all transactions involving the provision of entertainment, gifts, benefits, or other advantages, please confirm appropriateness before proceeding.
Please also consider creating and retaining timely and accurate accounting records.

Business partners are requested to ensure that their officers/employees, business counterparties, contractors, subcontractors, and other third parties are fully informed—through training and other measures—of anti-bribery laws and the intent of these Guidelines.
When outsourcing work involving public officials, etc. to a third party, please consider conducting due diligence to investigate and evaluate whether the contractor is appropriate.

If you violate, become aware of facts suggesting a violation of applicable domestic or foreign anti-bribery laws or these Guidelines in transactions related to YMFG’s business, or receive an inquiry from authorities, please contact YMFG promptly and cooperate with any investigation by YMFG or the relevant authorities.

YMFG will review these Guidelines as necessary, seeking opinions from external experts as appropriate, and may add or revise content.
The latest version will be posted promptly on Yamaguchi Financial Group’s official website after it takes effect.

Yamaguchi Financial Group recognizes the importance of its social responsibility and public mission and, in order to ensure sound business operations, will promote initiatives to completely sever any relationship with anti-social forces based on the following basic policy.

1. We will respond organizationally to unreasonable demands by anti-social forces and reject them resolutely. We will also take legal action through both civil and criminal measures.
2. To prepare for unreasonable demands by anti-social forces, we will strengthen close cooperation on an ongoing basis with the police, anti-organized crime promotion centers, corporate defense councils, attorneys, and other relevant parties.
3. We will not provide funds to anti-social forces.

Our Group recognizes its social responsibility and public mission as a regional financial institution, and seeks to enhance soundness and transparency in management while providing timely, accurate, and appropriate disclosure of important corporate information to earn the trust and confidence of stakeholders such as customers, shareholders, investors, and local communities.

With respect to important corporate information* that has a significant impact on investors’ decisions, our Group will comply with the Financial Instruments and Exchange Act, the Companies Act, the Banking Act, and other relevant laws and regulations, as well as rules of the Tokyo Stock Exchange and other supervisory authorities (collectively, “laws and regulations”), and will disclose information in a timely, accurate, and appropriate manner.

In disclosing information, our Group will ensure transparency and, while considering continuity and consistency, strive to provide disclosures that are easy for stakeholders to understand clearly and in depth.

In addition to disclosing important corporate information, our Group will proactively disclose information that is considered important or useful in helping stakeholders deepen their understanding of our Group.

From the perspective of fair disclosure, our Group will manage and operate information disclosure with due consideration to fairness, ensuring that it does not become selective disclosure to specific investors.

Our Group will strive to deepen stakeholders’ understanding of our Group through constructive dialogue.
We will also endeavor to leverage insights gained through dialogue with stakeholders to achieve sustainable growth and enhance medium- to long-term corporate value.

To implement this policy, our Group will establish internal rules such as timely disclosure standards and enhance compliance frameworks to ensure appropriate information management and disclosure.
When disclosing information, the department responsible for information disclosure will report the content to the President & CEO and promptly disclose it.

Our Group will disclose important corporate information using methods prescribed by laws and regulations, and will also promptly post such information on our corporate website.
Other information will also be disclosed through accessible means, such as posting on our corporate website.

To prevent the leakage of financial information and ensure fair disclosure, our Group designates the period from the day after the fiscal year-end to the earnings announcement date as a quiet period, during which meetings and interviews are generally refrained from.
This does not apply, however, to inquiries regarding information that has already been disclosed.

Information disclosed by our Group may include future strategies and outlooks, which are prepared based on assumptions deemed reasonable at the time of disclosure and involve risks and uncertainties.
Accordingly, actual results and performance may differ from those expressed or implied due to changes in the business environment and other factors.

Yamaguchi Financial Group, Inc. and its group companies (the “Group”) recognize the importance of preventing money laundering and terrorist financing (collectively, “money laundering, etc.”) and will work to prevent money laundering, etc. in accordance with the policy below.

• The Group will comply with laws, regulations, and other requirements related to the prevention of money laundering, etc.

• The Group’s Board of Directors will build a framework for preventing money laundering, etc. as one of management’s most important priorities.
• To ensure the effectiveness and efficiency of preventing money laundering, etc., the Group will establish a centralized internal control framework.

• The Group will develop an internal control framework to implement necessary customer due diligence measures in a timely and appropriate manner.

• Based on a risk-based approach, the Group will conduct and analyze appropriate customer risk management, and will continuously improve its prevention framework, including by reviewing risk mitigation measures.

• The Group will comply with applicable laws and regulations on economic sanctions, as well as the Group’s internal rules and standards.
• In accordance with applicable laws and regulations, the Group will implement asset-freezing measures for both legal entities and individuals.

• If the Group is solicited for a bribe, it will refuse and will not provide entertainment, gifts, donations, or political contributions that exceed what is considered reasonable under social norms.
• The Group will not use its position or authority to demand private benefits from business counterparties or others.
• The Group will not be involved in any form of corrupt practice.

• The Group will appropriately collect information on correspondent institutions and assess risks, and will take appropriate measures commensurate with the risks.
  In addition, the Group will not conduct transactions with shell banks (banks with no physical presence) or with correspondent institutions that transact with shell banks.
  * “Correspondent banking management” applies only to the banking business.

• To embed and ensure the effectiveness of operations related to preventing money laundering, etc., the Group will continuously provide training to officers and employees.

• The Group will monitor customer transactions on an ongoing basis and will promptly report suspicious customers or transactions detected to the relevant authorities.

• The Group will audit the adequacy of its framework for preventing money laundering, etc. and strive to further improve it.

The Yamaguchi Bank, Ltd.; The Momiji Bank, Ltd.; The Kitakyushu Bank, Ltd.; YM Securities Co., Ltd.; YM Lease Co., Ltd.; Yamagin Card Co., Ltd.; Momiji Card Co., Ltd.; Izutsuya With Card Co., Ltd.; YM Asset Management Co., Ltd.; YMFG Capital Co., Ltd.; YMFG Growth Partners Co., Ltd.

Yamaguchi Financial Group, Inc. (hereinafter “YMFG”) and its Group companies* recognize the necessity, as stated in Keidanren’s Cybersecurity Management Declaration, of proactively addressing cybersecurity measures as a key management issue from both the perspectives of value creation and risk management.
Based on this recognition, the YMFG Group has established this Cybersecurity Basic Policy (hereinafter the “Policy”) and promotes the strengthening of management‑led cybersecurity measures to address increasingly sophisticated and severe cyber threats.

* Group companies covered by this Policy include The Yamaguchi Bank, Ltd., Momiji Bank, Ltd., The Kitakyushu Bank, Ltd., and other Group subsidiaries.

Management continually enhances its understanding of the latest cybersecurity developments and positions cybersecurity as an investment, thereby actively engaging in management efforts.
Management directly confronts cybersecurity risks, recognizes them as important management issues, exercises leadership, and takes responsibility for implementing appropriate measures.
To protect customers’ valuable assets and ensure the stable operation of financial systems, the YMFG Group positions cyber risk as one of its critical risks and continuously promotes countermeasures under management leadership.

In addition to prevention and protection, the YMFG Group emphasizes detection, response, and recovery, and formulates management policies and Business Continuity Plans (BCP) aimed at early recovery from incidents.
Management takes the lead in communicating its commitment to internal and external stakeholders and strives for transparency by voluntarily disclosing recognized risks and corresponding initiatives through various reports.
Specifically, the Group has established dedicated units responsible for activities during both normal operations and emergencies in preparation for cyberattacks. These units conduct information collection and analysis related to cyber threats, develop procedures and manuals, conduct regular drills and training, and review contingency plans. The Group also discloses its cybersecurity enhancement initiatives through integrated reports and other channels.

The YMFG Group secures sufficient resources, including budgets and personnel, and establishes internal frameworks to implement necessary human, technical, and physical measures. The Group promotes the development and education of personnel at all levels, including management, planning and administrative functions, technical staff, and employees.
The Group also addresses cybersecurity across its supply chain, including business partners, contractors, and overseas operations.
Specifically, the Group analyzes cyberattack risks and continuously strengthens security measures. Through collaboration with system‑sharing partner banks and secondments to external specialized organizations, the Group promotes human resource development in cooperation with external entities. Training initiatives covering management and Group companies are also conducted to strengthen capabilities at all organizational levels.
Supply‑chain measures are implemented through monitoring of cybersecurity practices at contractors and other external parties.

The YMFG Group endeavors to incorporate cybersecurity measures throughout its business activities, including the development, design, production, and provision of systems and services.
Specifically, cybersecurity measures are implemented during the development of new systems and services to ensure that customers can use services safely and securely. In addition, through the Company’s website and other channels, the Group calls attention to measures that help customers safely use financial services.

In cooperation with relevant government authorities, organizations, and institutions, the YMFG Group actively engages in information sharing through the provision of information, dialogue within Japan, and the formation of human networks.

By raising awareness regarding countermeasures based on accumulated information, the Group contributes to enhancing cybersecurity across society as a whole.

Specifically, the Group collaborates in a timely and appropriate manner with relevant authorities such as the Financial Services Agency and law enforcement agencies, and exchanges information with organizations including Financial ISAC and system‑sharing partner banks, thereby strengthening society‑wide cybersecurity measures.

Established on August 29, 2025