JB Financial : IR Letter_2023.04.11

IR Letter (April 2023)

JB Financial Group

Dear JB Financial Group Shareholders,

In this IR letter, we would like to briefly share with you some information related to the annual general shareholders' meeting (AGM) held on March 30 (Thu), 2023.

The attendance rate of this annual general shareholders' meeting turned out to be 86.8%, which clearly shows that the shareholders have a very keen interest in the agenda of the annual general shareholders' meeting. Align Partners Capital Management Inc., JBFG's second largest shareholder, proposed two agenda items: dividend payment and appointment of an independent director. This was a great opportunity for us to offer our opinion about JBFG's direction regarding shareholder return and capital policies and at the same time to obtain and consider precious views of our shareholders. The results of the voting for each agenda item are as follows:

Agenda	Agenda	Approved	Approval	Rejection
Item No.	/Rejected	Rate	Rate
1	Approval of FY2022 Financial Statements, Consolidated Statements of Financial Position and Dividend
1-1	Approval of FY2022 Financial Statements, Consolidated	Approved	93.9%	6.1%
Statements of Financial Position; Separate Statements of
	Appropriation of Retained Earnings
1-2	Approval of FY2022 Dividend and Statement of Changes in Equity
1-2-1	Dividend Per Share of KRW 715 (Common Share)	Approved	74.4%	25.6%
1-2-2	Dividend Per Share of KRW 900 (Common Share, Shareholder	Rejected	26.8%	73.2%
Proposals)
2	Approval of Amendments to the Articles of Incorporation
2-1	Amendments to Article 37 (A Provision Regarding the	Approved	78.2%	21.8%
Limitation on the Term of Independent Directors)
2-2	Amendments to Article 56 (Improvement of Dividend	Approved	99.4%	0.6%
Procedure)
3	Election of Directors
3-1	Independent Director Yoo Kwan-Woo	Approved	79.2%	20.8%
3-2	Independent Director Sung Jae-Hwan	Approved	63.4%	36.6%
3-3	Independent Director Kim Ki-Seok (Shareholder Proposals)	Rejected	41.3%	58.7%
4	Election of Lee Sang-Bok as Independent Director, Audit	Approved	80.7%	19.3%
Committee Members
5	Election of Audit Committee Members
5-1	Audit Committee Members Yoo Kwan-Woo	Approved	86.8%	13.2%
5-2	Audit Committee Members Sung Je-Hwan	Approved	70.5%	29.5%
6	Approval of Remuneration Limit for Directors in FY2023	Approved	99.4%	0.6%

IR Letter (April 2023)

JB Financial Group

First of all, we would like to express our deepest gratitude to our shareholders for exercising your voting rights with keen interest. All our management and employees with one accord will be doing our utmost to increase the corporate value of JB Financial Group. We have been enhancing our CET1 ratio (Capital policy) and total shareholder return (shareholder return policy) at the same time by accomplishing the sector-highest ROE and 'NIM-CCR(=risk-adjusted return)' based on profitability-centered qualitative growth. We will keep building up our capital base (CET1 ratio) in a stable manner for potential loss absorption capacity and strengthening our shareholder return policy on an on-going basis. From the angle of static analysis, the shareholder return ratio (payout ratio) that enables us to maintain our target CET1 ratio once we arrive to the level is estimated to be around 40% given our current profitability structure. We will be making efforts to further improve shareholder return ratio (payout ratio) through the enhancement of profitability structure by increasing the share of fee income and to tide over the growing uncertainty of the global financial markets through proactive risk management. Furthermore, we will be improving communication with our shareholders in a more modest and transparent manner from now on. Your continued warm interest and engagement would be very much appreciated.

Starting February this year, we have a new head of IR Department, Ms. Kathy Park. She has worked as an analyst in global investment banks for many years and thus has ample experiences on both the sell-side and buy-side. Fully leveraged by diverse experience of Kathy Park, JBFG's IR Department will try harder to understand the needs of our shareholders, deliver shareholders' opinions to our management and strengthen communications with our shareholders through the formulation of meaty IR data materials based on her experience as a bank analyst. Managing Director Jin-Sok Choi who has been heading IR Department up until recently is now the Head of External Relations and Cooperation Division who assumes overall responsibility for IR, ESG, and CSR. He will be raising our corporate value and communicating with shareholders in more diverse areas.

If you have more inquiries or need more data, please contact IR Department.

Thank you.

IR Department, JB Financial Group