Message from the President and CEO

President & CEO Yuichi Tao President & CEO
Yuichi Tao

Dear Shareholders and Investors,

I would like to express my deepest gratitude for your continued support for the FIDEA Group, including the Shonai Bank, Ltd., and the Hokuto Bank, Ltd.
In fiscal 2017 the FIDEA Group launched its third Medium-term Management Plan, “Consulting and Innovation.”
The environment surrounding regional financial institutions is growing more and more difficult because of the declining birthrate and associated declining and aging population, the prolonged negative interest rate environment, and changes in competitive environment due to the entry of other industries into the field. Under these circumstances, we will be committed more closely than ever to our customers and aim at a transformation to a business model in which we identify both the apparent and potential needs of customers through dialogue with them and exercise consulting capabilities in a timely manner, thereby supporting the growth of regional economies.
Specifically, in order to satisfy needs related to business succession and M&A, which have been increasing among our local firms, we will formulate a support team comprising personnel with professional expertise and skills across our two banks and proactively offer consultation. Moreover, in expanded cooperation with other local banks and business partners, we will provide business information in a broader range of areas and endeavor to enhance our lineup of solutions to various issues of our clients, including marriage-arrangement support and staffing services.
As a leader in regional economies, we will also continue to proactively support regional revitalization projects. In fiscal 2017, we were actively engaged in initiatives to help overcome structural problems in areas with a declining population and support the sustainable development of regional areas, such as: inviting the Thai national badminton team to Misato Town, Akita Prefecture as the site for their training camp for the Tokyo Olympics; supporting asset securitization in line with the large-scale redevelopment of retail facilities, which are the core customer attraction in the center of Tsuruoka City, Yamagata Prefecture ; accumulating achievements in supporting agribusinesses using the Shonai Bank’s agribusiness support fund; and supporting incomers and their start-up businesses in cooperation with local governments.
In April 2018, we restructured the headquarter functions of the holding company and the two banks. To enable both the Shonai Bank and the Hokuto Bank to fulfill their responsibilities in the revitalization of their respective business areas and devote efforts in solving issues of their customers, we have integrated planning-related functions, including those of the holding company, and are now forwarding the integration of administration centers and other back-office operations. The holding company and the two banks are making a united effort to exert further synergies, and working on the enhancement of consulting business systems in a speedy manner.
Under the slogan “Reaching out to the community and stepping into the next generation - Trust FIDEA,” FIDEA Group will strive to become the best advisor for our customers, as a readily accessible provider of information and expertise in solving our customers’ needs and issues.
I appreciate your continued support and guidance.

May 2018
Yuichi Tao
President and CEO
FIDEA Holdings Co. Ltd.