Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Consolidated Financial Results for the Year Ended March 31, 2023
(Based on Japanese GAAP)May 12, 2023
Company name:Yamaguchi Financial Group, Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

8418
URL https://www.ymfg.co.jp
President and CEO

Inquiries:

General Manager of Accounting
Office,Corporate Planning Department

Keisuke MukunashiKentaro Hama

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 28, 2023
June 29, 2023

Scheduled date to commence dividend payments:
Trading accounts:

June 29, 2023
Yes

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

TEL

083-223-5511(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toOrdinary income
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2023
157,324
7.0
25,698–17,894–
Year ended March 31, 2022
147,016(19.8)(7,635)–(13,005)–
Profit attributable toOrdinary profit/total
owners ofassets
parent/equity
Yen%%
77.39
2.90.2
–
(2.0)
(0.1)

Diluted earnings pershare

Earnings per share
Yen
77.41
(53.29)Year ended March 31, 2023
Year ended March 31, 2022

Ordinary
profit/ordinary
income%16.3(5.2)(2) Consolidated financial position
Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
12,211,645
12,182,662

Millions of yen
614,665
636,344

Cash flows fromoperating activities
Millions of yen(143,348)(77,132)

Cash flows frominvesting activities
Millions of yen(155,575)
461,973

Net assets per share%
5.0
5.2

Yen
2,718.04
2,652.26(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash flows fromCash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
1,764
1,854,674(13,202)2,151,826

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

14.00
15.00

––14.00
16.00

28.00
31.00

6,810
7,098

–
40.0

1.0
1.2

–

21.00

–

22.00

43.00

140.3

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen%Yen
Six months ending
September 30, 2023
Full year

16,500(1.0)

11,000(10.3)

48.87

35,00036.2

24,00034.1

106.62

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

264,353,616 shares As of March 31, 2022

264,353,616 shares

Number of treasury shares at the end of the period
As of March 31, 2023

39,260,405 shares As of March 31, 2022

26,865,558 shares

231,170,754 shares Year ended March 31, 2022

244,077,267 shares

Average number of shares during the period
Year ended March 31, 2023

2

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCash and due from banks

2,175,9131,878,858

Call loans and bills bought
Monetary claims bought

31,713
5,442

934
2,457

Trading account assets
Money held in trust

3,101
35,0593,976
17,404

1,354,033
8,143,997

1,534,139
8,347,832

Foreign exchanges
Lease receivables and investments in leases

30,041
19,69836,77219,805

Other assets
Tangible fixed assets

288,261
83,132250,907
81,121

Buildings, net
Land19,69554,304

19,443
52,910

Leased assets, net
Construction in progress

107
212

93245

Other tangible fixed assets
Intangible fixed assets

8,811
6,991

8,428
6,577

5,689
412

5,349
359

–
889

0868

Retirement benefit asset
Deferred tax assets

32,727
3,513

34,335
9,964

Customers' liabilities for acceptances and guarantees
Allowance for loan losses

50,382(81,348)

58,967(72,410)

12,182,662

12,211,645

Securities
Loans and bills discounted

Software
Goodwill
Leased assets
Other intangible fixed assets

Total assets3

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Deposits
Negotiable certificates of deposit

9,931,230
403,327

9,954,008
371,711

Call money and bills soldCash collateral received for securities lent

78,078314,958

340,052
285,322

Trading account liabilities
Borrowed money

1,379
626,546

1,813
403,303

Foreign exchanges
Bonds payable171
20,00098
42,400

Other liabilities
Provision for bonuses

102,981
2,878

123,479
2,695

2,652

2,588

287

281

18

13

Provision for reimbursement of deposits
Provision for point card certificates

530
83

359
124

Provision for management board benefit trust
Reserves under special laws

488
17427
17

Deferred tax liabilities
Deferred tax liabilities for land revaluation

1,421
8,883

683
8,628

Acceptances and guarantees

50,38258,967

11,546,318

11,596,980

Share capital
Capital surplus

50,00058,64850,00058,639Retained earnings
Treasury shares

511,253(25,045)522,893(34,847)

Total shareholders' equity

594,855

596,685

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

8,171
4,749

(17,237)
11,253

Revaluation reserve for landRemeasurements of defined benefit plans

20,001
2,101

19,432
1,678

Total accumulated other comprehensive income

35,023

15,126

Share acquisition rights
Non-controlling interests

816,38243
2,809

636,344614,665

12,182,662

12,211,645

Retirement benefit liability
Provision for retirement benefits for directors (and otherofficers)
Provision for loss on interest repayment

Total liabilities
Net assets

Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans and bills boughtInterest on deposits with banks
Other interest income
Trust fees
Fees and commissions
Gain on trading account transactions
Other ordinary income
Other income
Recoveries of written off receivables
Other
Ordinary expenses
Interest expenses
Interest on deposits
Interest on negotiable certificates of deposit
Interest on call money and bills soldInterest expenses on cash collateral received for securities
lentInterest on borrowings and rediscounts
Interest expenses on bonds
Other interest expenses
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Provision of allowance for loan losses
Other

147,016
92,23967,49622,546
102
2,042
50
0
26,569
1,752
20,108
6,347
9
6,337
154,652
5,464
1,579
14
299

157,324
104,859
85,78016,724
556
1,754
42
0
25,9401,094
13,011
12,417912,408
131,625
17,188
3,575
17
1,942

381

4,579

66
158
2,965
9,561
47,78560,562
31,27822,047
9,231

52
261
6,758
9,156
32,217
61,155
11,9086,243
5,664

Ordinary profit (loss)(7,635)25,698Extraordinary income
Gain on disposal of non-current assets
Gain on bargain purchase
Gain on step acquisitions
Gain on return of assets from retirement benefits trust
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Loss on revision of retirement benefit plan
Provision of reserve for financial instruments transaction
liabilities

9,274
180
–
–
9,094
7,142
269
5,631
1,241

1,783
371
907
504
–
795
203
592
–

0–

Profit (loss) before income taxes(5,503)

26,686

Income taxes - currentIncome taxes - deferred

940
6,431

7,530
1,111

Total income taxes
Profit (loss)

7,372

8,641

(12,876)

18,044

Profit attributable to non-controlling interests

129

150

Profit (loss) attributable to owners of parent(13,005)

17,894

5

Consolidated statements of comprehensive income(Millions of yen)

Profit (loss)
Other comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023

(12,876)(18,459)

18,044(19,346)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(11,277)
3,269(25,428)
6,503

Remeasurements of defined benefit plans, net of tax(10,451)(422)(31,335)(1,302)(31,492)(1,433)

157

131

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

50,000Retained earnings

58,654

528,085

Cumulative effects ofchanges in accounting
policiesTotal shareholders'equityTreasury shares(18,649)

618,091(318)

Restated balance

50,00058,654

527,767(318)(18,649)

617,772

Changes during period
Dividends of surplus(6,699)(6,699)Profit (loss) attributableto owners of parent(13,005)(13,005)

Purchase of treasury
shares
Disposal of treasury
shares(6,501)(6,501)

10498

(6)

Purchase of shares of
consolidated subsidiaries–

Reversal of revaluation
reserve for land

3,191

3,191

Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period–(6)(16,513)(6,396)(22,916)

50,00058,648511,253(25,045)594,855

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities
Balance at beginning of
period19,477

1,480

Total

Revaluation
reserve forland

Remeasurements

accumulatedof defined benefit

otherplanscomprehensive

Shareacquisitionrights

Noncontrollinginterests

117

6,228

income23,192

12,55356,702

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets681,139(318)
19,477

1,480

23,192

12,55356,702

117

6,228

680,820

Changes during period
Dividends of surplus(6,699)Profit (loss) attributableto owners of parent(13,005)

Purchase of treasury
shares(6,501)

Disposal of treasury
shares98

Purchase of shares of
consolidated subsidiaries–

Reversal of revaluation
reserve for land

3,191

Net changes in items
other than shareholders'equity(11,305)

3,269(3,191)(10,451)(21,678)

(35)

154

(21,559)

Total changes during
period(11,305)

3,269(3,191)(10,451)(21,678)

(35)

154

(44,476)

Balance at end of period

8,171

4,749

20,001

2,101

35,023

81

6,382

636,344

7Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

50,000Retained earnings

58,648511,253

Total shareholders'equity

Treasury shares(25,045)594,855

Changes during period
Dividends of surplus(6,822)(6,822)

Profit (loss) attributableto owners of parent

17,894

17,894Purchase of treasury
shares
Disposal of treasury
shares(10,000)(10,000)

198

208

9Purchase of shares of
consolidated subsidiaries

(18)

(18)

Reversal of revaluation
reserve for land

568

568

Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period–(8)

11,640(9,801)

1,829

50,00058,639522,893(34,847)

596,685

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities
Balance at beginning ofperiod

8,171

4,749

TotalRevaluation
reserve forland

Remeasurements

accumulatedof defined benefit

otherplanscomprehensive

Shareacquisitionrights

Noncontrollinginterests

81

6,382

Total net
assetsincome20,001

2,101

35,023636,344

Changes during period
Dividends of surplus(6,822)

Profit (loss) attributableto owners of parent

17,894Purchase of treasury
shares(10,000)

Disposal of treasury
shares

208

Purchase of shares ofconsolidated subsidiaries(18)

Reversal of revaluation
reserve for land568

Net changes in items
other than shareholders'equity(25,409)

6,503

(568)

(422)

(19,897)(38)(3,572)(23,508)

Total changes during
period(25,409)

6,503

(568)

(422)

(19,897)(38)(3,572)(21,678)

Balance at end of period(17,237)

11,253

19,432

1,678

15,126

43

2,809

614,6658

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Gain on bargain purchase
Loss (gain) on step acquisitions
Share of loss (profit) of entities accounted for using equity

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
(5,503)

26,6865,4005,631

5,037
592

400
–

67(907)–(504)

methodIncrease (decrease) in allowance for loan losses

5(16)8,004(8,938)

Increase (decrease) in provision for bonuses
Decrease (increase) in retirement benefit asset

26
26,878(182)(1,607)

(137)

(63)

(6)

(5)

54(60)

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in provision for share awards for directors(and other officers)
Increase (decrease) in provision for loss on interest repayment

(24)

(4)

Increase (decrease) in provision for reimbursement of deposits
Increase (decrease) in provision for point card certificates(177)
12(171)
41

Increase (decrease) in reserves under special laws
Interest income0(92,239)–(104,859)

Interest expenses
Loss (gain) related to securities

5,464
34,73817,188
7,612

Loss (gain) on money held in trust
Foreign exchange losses (gains)(244)(18,785)

1,288(12,176)

Loss (gain) on disposal of non-current assets
Net decrease (increase) in trading account assets

89(1,120)

(167)
(875)

Net increase (decrease) in trading account liabilities
Net decrease (increase) in loans and bills discounted

630(249,871)

434(203,835)

Net increase (decrease) in deposits
Net increase (decrease) in negotiable certificates of deposit

323,939(956)

22,778(31,616)

Net increase (decrease) in borrowed money (excludingsubordinated borrowings)(11,806)(223,243)

Net decrease (increase) in due from banks (excluding duefrom Bank of Japan)

3,391

(95)

Net decrease (increase) in call loans
Net increase (decrease) in call money(23,411)(89,074)

33,763261,974

Net increase (decrease) in cash collateral received forsecurities lent

(11,456)(29,635)

Net decrease (increase) in foreign exchanges - assets
Net increase (decrease) in foreign exchanges - liabilities(7,632)(21)(6,731)(72)

Net decrease (increase) in lease receivables and investments
in leases

621

(106)

Losses (gains) on cancellation of employee retirement benefit
trust(9,094)–

Loss (gain) on revision of retirement benefit plan

1,241–

9(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023

Interest received
Interest paid

81,233(5,614)99,259(16,386)

Other, net(40,471)

21,509Subtotal(69,883)(144,031)

Income taxes paid

(9,095)(6,336)

Income taxes refund

1,846

7,018

(77,132)(143,348)(2,107,076)
2,534,143(820,504)
622,107

Proceeds from redemption of securities
Increase in money held in trust

35,223(8,509)30,140(4,960)Decrease in money held in trust
Purchase of tangible fixed assets

8,970(1,515)

21,126(2,018)Proceeds from sale of tangible fixed assets
Purchase of intangible assets

2,740(1,991)

1,362(2,446)

Purchase of shares of subsidiaries resulting in change in scopeof consolidation–(382)

Purchase of shares of associates accounted for using equity
method(9)–461,973(155,575)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from sale of securities

Net cash provided by (used in) investing activities
Cash flows from financing activities
Issuance of subordinated bonds–22,270(6,699)(2)(6,822)(2)–(3,679)

Purchase of treasury shares
Proceeds from disposal of treasury shares(6,501)0(10,000)0

Net cash provided by (used in) financing activities(13,202)

1,764

77

Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change inscope of consolidation

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

371,646(297,151)

Cash and cash equivalents at beginning of period

1,780,179

2,151,826

Cash and cash equivalents at end of period

2,151,826

1,854,674

10