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Message from the President

Issues Japan Faces and DBJ’s Role in Resolving Them

The Japanese economy faces a number of pressing issues. Following the Great East Japan Earthquake, these include the need for restoration and reconstruction, as well as electrical power supply problems. Also of growing concern is the hollowing out of industry, owing to yen appreciation. The economy also confronts structural issues, such as deflation, a lower birth rate and an increase in the average age. Furthermore, we face concerns about the impact of the European debt crisis on international financial and capital markets and the world economy.

In light of these issues and the expected changes in the socioeconomic environment, DBJ will continue working toward Japan’s socioeconomic development in the ways described below, by leveraging its characteristics: a long-term perspective, large size, integrated investment and loans, and a neutral standpoint.
First, by supplying risk capital in an appropriate manner, DBJ’s financial function is to help reinforce Japan’s financial markets. At the same time, to counter the hollowing out of Japanese industry we are helping to rebuild the industrial infrastructure and aiding the reconstruction of the Japanese industrial structure. Furthermore, DBJ is supporting growth in fields that should help to expand Japan’s economic frontiers.
In addition, we are taking an active role in providing a safety net for financial markets, responding expeditiously and proactively to such events as financial crises and the Great East Japan Earthquake.
While filling these roles, as a joint stock company we manage DBJ as an autonomous entity, introducing initiatives that are designed to boost our profits.

Specific DBJ Initiatives

Based on these precepts, in the preceding fiscal year DBJ formulated its second medium-term management plan, which is a three-year plan designed to respond appropriately to current issues such as the Great East Japan Earthquake. At the same time, the plan targets the reconstruction of the Japanese industrial structure and aims to proactively support growth fields.
DBJ responded to the Great East Japan Earthquake by fully leveraging its accumulated expertise and networks and making a full-fledged effort to support general industries in the affected region. As a designated financial institution for crisis response operations, we met current financial demands providing financing for crisis response operations amounting to approximately ¥1 trillion (as of March 31, 2012). In addition, on its own initiative DBJ responded to capital funding needs by forming restoration funds in cooperation with regional banks in the affected area, thereby putting in place a detailed support structure.
As part of our efforts to rebuild the industrial structure and support growth fields, we established the DBJ Smart Japan Program to support our own financing activities to boost global competitiveness and target community development and the environment and energy fields, among others. In growth fields in particular, in addition to having a financial aspect, our efforts focus on nurturing the seeds of success. Given Japan’s lower birth rate and increase in the average age, encouraging the participation of women has become essential to supporting economic activity. Recognizing this situation, we set up the Women Entrepreneurs Center (DBJ-WEC). Specific center activities commenced in June 2012, when we held a business competition targeting female entrepreneurs.
Going forward, DBJ will continue playing the roles referred to earlier as it contributes to addressing the issues faced by the Japanese economy.

Meeting Our Corporate Social Responsibilities

We believe that a company’s corporate social responsibilities center on a commitment to creating social value through its operations. We meet this responsibility through business activities that address a host of societal needs and issues, and via our financial services. Accordingly, our business endeavors themselves form the base of our CSR activities. We plan to continue increasing our CSR efforts by increasing our sensitivity to societal needs and raising the level of the solutions that we provide.

Development Bank of Japan Inc.
President & CEO Toru Hashimoto

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