ANNUAL REPORT

2022

Profile
Musashino Bank is the only regional bank whose operationalbase consists of Saitama Prefecture in the Tokyo metropolitan
area. The prefecture lies immediately to the north of Tokyo,
and many of its residents commute to work in the capital.
Currently, 7.33 million people (estimated) live in Saitama,
making it the country’s fifth most populous prefecture after

Tokyo, Kanagawa, Osaka, and Aichi. Since its establishment in 1952, Musashino Bank has been one of Saitama
Prefecture’s core financial institutions, and has played a majorrole in supporting the development of the regional economy
and local industries for 70 years.

Corporate Philosophy“Working in harmony with the local community it serves”

To contribute to the prosperity of the local community and to secure growth and development in partnership with the region.

“Maintaining a deep respect toward customers”

To engage in bold management that anticipates change while providing the highest-quality services throughout the organization
as a whole.

Bank Data (non-consolidated basis, as of March 31, 2022)

Subsidiaries and Affiliated Companies

Head Office:10-8, Sakuragi-cho 1-chome, Omiya-ku, Saitama

Home page:https://www.musashinobank.co.jp

Established:

March 6, 1952

Networks:

Number of branches: 99 (Saitama Prefecture: 93 [of which
2 are sub-branches], outside Saitama Prefecture: 6)Name
The Bugin General Lease
Co., Ltd.
The Bugin Guarantee
Co., Ltd.
The Musashino Card
Co., Ltd.

Number ofmortgage loan centers:

9

Employees:

1,990

Total assets:¥5,468.0 billion

Deposits:¥4,797.6 billion

Loans:¥3,854.3 billion

Common stock:¥45.7 billion

Capital adequacy ratio:

8.11%

Number of correspondent112
arrangements:
Issued common stock:33,805 thousand sharesLine of Business
General leases, installment-payment
services, auto leasing services
Loan guarantees for individuals

Credit card business (JCB, VISA),
loans and loan guarantees related tocard services
The Bugin System Service Development, sale and maintenanceCo., Ltd.
of computer systems
The Bugin Economic
Research into the regional economy,
Research Instituteconsultation, information services,Co., Ltd.
and holding of seminars
The Bugin CapitalManagement support for ventureCo., Ltd.
businesses
The Musashino Harmony Outsourcing of operational businessCo., Ltd.
The Musashino Mirai
Regional trading company business
Partners Co., Ltd.

Contents
1 Financial and Non-Financial Highlights
4 Musashino Bank’s Value Creation Process
6 Message from the President
11 Long-term Vision/Medium-term Management Plan
12 Operational Base of Saitama Prefecture/Alliance Strategy
13 Providing SME Management Assistance
14 Contributing to the Local Economy
15 Sustainability Management Initiatives

18 Corporate Governance
19 Compliance
20 Risk Management
21 Consolidated Balance Sheets
23 Consolidated Statements of Income and Comprehensive Income
24 Consolidated Statements of Changes in Equity
26 Consolidated Statements of Cash Flows
27 Directory

Financial and Non-Financial Highlights
The Musashino Bank, Ltd. and Consolidated Subsidiaries Years Ended March 31, 2022 and 2021

Thousands of
U.S. Dollars(Notes 1 and 2)
2022

Millions of Yen (Note 1)
2022
2021

At Year-end
Total assets....................................................................................................
Deposits including negotiable certificates of deposit......................................
Loans and bills discounted............................................................................
Trading account securities and securities.......................................................
Total net assets..............................................................................................
Capital adequacy ratio (based on domestic standards) (%)............................

¥5,486,283
4,781,100
3,841,638
735,266
250,554
8.48¥5,319,971
4,657,956
3,789,948
683,441
249,179
8.54$44,826,236
39,064,466
31,388,496
6,007,566
2,047,177

For the Year
Ordinary income...........................................................................................
Ordinary expenses.........................................................................................
Profit before income taxes.............................................................................
Profit attributable to owners of parent...........................................................

¥   71,186
57,693
13,4219,001¥   71,418
58,611
12,796
8,022$   581,632
471,387
109,658
73,544

Notes: 1. In this annual report, Japanese yen (in millions) and U.S. dollars (in thousands) are indicated with fractions rounded off.
2. U.S. dollar figures have been translated at a rate of ¥122.39 to U.S.$1, the prevailing exchange rate as of March 31, 2022.

Ordinary income

Ordinary expenses

Profit attributable to owners of parent(¥ million)(¥ million)(¥ million)

77,85867,852

71,418

9,001

66,487

71,186

59,106

58,611

8,066

8,022

FY2019FY202057,6935,345

FY2018FY2019FY2020

FY2021FY2018FY2019FY2020

FY2021FY2018FY2021

Forward-Looking Statements: This annual report contains forward-looking statements regarding the Bank’s financial condition and results ofoperations. These forward-looking statements, which include the Bank’s views and assumptions with respect to future events, involve certain
risks and uncertainties. Actual results may differ from forecasts due to changes in economic conditions and other factors.

Number of employees
2,171

2,103

(%)

2,080

2,030

776

757

766

765

1,395

1,346

1,314

1,265

FY2018FY2019FY2020

FY2021Men

Women

CO2 emissions

Ratio of female managers

(t)

19.2

19.4

FY2018FY2019

20.8

21.6

6,446

FY2020

FY2021FY2018

6,618
5,779

FY2019FY20206,161

FY20211

Governance
Composition of the Board of Directors
Ratio ofoutside directors

Composition of the Board of Corporate Auditors

37.5% (3 out of 8 members)

Internal directors

Ratio of outside
corporate auditors

60.0% (3 out of 5 members)Standing corporate
auditors

Outside directors(As of July 2022)

Outside corporate
auditors(As of July 2022)

SocialCustomer baseSupport for customers’ core business activities

Number ofcorporate borrowers

Support fordeveloping
sales channels

21,009 companies
21,00920,871

20,1662020.32021.3

1,826

2020.32022.3

Solving issues such as business succession

159

Support forbusiness
succession

companies

1,958

companies

413

Support for
M&As

796

2021.32022.32021.32022.3companies

2021.32022.3Developing specialized human resources¥23.4 billion

163

Sustainable finance refers to finance in which funds
are used for solving environmental and social issues.

(Year ended March 31, 2022)

Promoting active roles for diverse human resources

Number of employees obtaining qualifications as
1st Grade Certified Skilled Professional of Financial Planningand Small and Medium Enterprise Management Consultant

Ratio of female managers

21.6%
14.3%

employees(As of March 31, 2022)

2

652

Amount of sustainable finance executed283

2020.32020.32022.3413
1592021.3projects

1,180

1,992

182

2020.3652

Start-up
supportSolving environmental and social issues

202
164

1,992

2016.32022.3External assessments of measures to promote active roles
for diverse human resources

Creating work opportunities for people with disabilities
Ratio of employees with disabilities

2.45%
Platinum Kurumin

Eruboshi(Obtained in 2017)

Recognized under the Act on Advancement of Measures
to Support Raising Next-Generation Children(Obtained in 2016)

Recognized under the Act on Promotion of
Women's Participation and Advancement in the Workplace

Promoting work-life balance(March 2022, Group-wide)

Financial literacy

Childcare leave acquisition rate for men

84.8 %

Number of participants in financial literacy classes
for elementary school students
Total of879

participants(Year ended March 31, 2022)(2010–2021)

Environment
Support for promotion of local culture and art

CO2 emissions(Tons)

Violin concerts at elementary schools
within Saitama Prefecture50

Total of

5,779

concerts (June 2009 to June 2022)

6,618

6,161

2021.32022.3

Concerts for customers
Total of12

concerts (May 2007 to May 2022)

Greening activities

2020.3

Environmentally friendly accounts

Subsidies provided
by the Musashino Green Fund public trust
Total of

¥76.5
331

millionTotal ofenvironmental organizations
provided with assistance(July 1992 to April 2022)

Environmentally friendly accounts that do not issue passbooks,
leading to reduced paper use

WebNote46,275accounts(As of March 31, 2022)

3

Musashino Bank’s Value Creation Process
As the environment both in Japan and overseas changes significantly, theBank will strive to capture the full potential of the Tokyo metropolitan area,
centered on Saitama Prefecture, which is the Bank’s operational base. The
Bank will establish sustainable business models in the business domains of“growth” and “creation,” with the goal of continuing to grow together withcustomers and communities.

Long-term vision
Capital deployed
INPUT

Business structure
Growth domain

Awareness of external
environment surrounding
regional financial institutions

Financial capital• Growing solution revenue• Loan-to-deposit ratio at the top
level of the regional bank sector• Sound loan assets and capital
adequacy• Measures to handle the prolonging ofliving with coronavirus• Accelerating initiatives for regional
revitalization• Business model transformation
through DX• Opportunities to enter different
industries through deregulation• Support for decarbonization as aregional financial institution

Creation domain

Human capital• Employees’ devotion and senseof mission toward communities• Progress on urban redevelopment andthe establishment of industries• Population aging faster than any otherprefecture in Japan

Proactive efforts towards
regional revitalization andstimulation of the local
economy• Human resources with strong
specialized expertise• Promotion of a diverse workforce,
including womenSocial capital
Saitama Prefecture

Advanced solutions functions,in addition to financial
intermediary functions, lie atthe core of business

Unique strengths• Operating in the Tokyo
metropolitan area, centered on
Saitama Prefecture• Branch networks with close ties
to communities• A continuously growing
customer base developed since
the Bank’s founding

Operating in the Tokyo
metropolitan area, a growing
regionIntellectual capital• Quality and quantity of
information through networks
closely tied to communities• Ability to deliver diverse andsophisticated solutions throughbusiness evaluations

Implement strategies that
capture the full potential ofthe market• Use of digital technologies thatfacilitate the creation of new
businesses and services

The Bank remains close to customers and solves their issues,4

Business model

OUTPUT

The number one bank in the region that creates value in Saitama

Medium-term Management
Plan “MVP 70”

Creation strategy
Digital transformation strategy(Build infrastructure and systems)

Sustainability (ESG/SDGs)
Human resource strategy
Alliance strategy
Securities strategy
Group strategy
Management andadministration systems

OUTCOME

Completion of the ideal
business model•N umber one solutions in the region• Integration of people and digitaltechnology

Growth strategy

Value provided

The Bank rigorously
pursues a businessmodel that reinvests
in community
development to earn
the overwhelming
satisfaction ofcustomers andearnings from corebusiness (interest
income and fees andcommissions) byresolving issues

Compliance

Shareholders andother investors• Increase shareholder value

Local communities• Contribute to innovation forcommunities as a whole• Further promote thedevelopment of industry

Customers• Increase the corporate valueof customers• Stable asset formation andsuccession

Employees
Musashino Bank Sustainable Development Goals Declaration
Vision for the Bank (Key Areas)
Corporate Governance as the Sourceof Sustainable Growth

Sustainable
Regional Economy

Responding to Climate Change,
Maintaining and Increasing
Biodiversity

A Society in Which People Can Live
Their Own Way for as Long as They Wish

• Diverse and highly fulfilling
work styles• Promote diversity• Create local employment

Global environment• Promoting decarbonization
through investment andfinancing• Store locations withconsideration for theenvironment and biodiversity

thereby achieving growth together with its customers.
5

Message from the President

Continuing to Grow Together
with Communities
Business Environment

Kazumasa Nagahori
President

6

Looking back at fiscal 2021, measures for prevention of
infection were in place twice—in April at the start of the
fiscal year and at the end of the fiscal year from January
to March, while a state of emergency was declared during
summer. In this way, the economy and society were batteredby the fourth to sixth waves of COVID-19, which has
had wide-ranging impacts on the daily lives of residents of
Saitama Prefecture and on business activities.
In addition to the prolonged pandemic, Russia’s invasionof Ukraine in February 2022 sparked a surge in resource
prices, while rising interest rates abroad led to yen depreciation. Such trends have continued to obscure the outlook forthe economy.
Under this environment, we at Musashino Bank
exhausted every effort to perform our core business as afinancial intermediary function to support the community.
We are conducting ongoing interviews with all of ourcorporate clients, who number around 20,000 companies,
asking them about the impacts of COVID-19, the Ukraine
situation, and price escalation, among other issues, as we
strive to provide smooth and prompt funding support. In
addition, our branches and Head Office are working together,
led by the Consulting Office, a specialized organization to
support the main business, to provide rigorous support forbusiness model transformation and business reconstruction.
Under these conditions, regional banks like Musashino
Bank are once again being put to the test regarding their roleand reason for existing while looking toward the maintenanceand revitalization of regional industries and employment.
In Saitama Prefecture, the Bank’s local market, thepopulation is aging faster than any other prefecture in Japan.
Expectations are growing on a daily basis toward the Bank’sefforts to advance services to support seamless inheritanceand business succession, and its measures to promote regional
revitalization and creation.
Moreover, digital transformation (DX) and cashlesstransactions are proceeding at an even faster pace than before,
and there is a demand to establish business models that are
not part of the traditional framework.

In addition to these issues, the financial sector has an evengreater role to fulfill in tackling shared global issues such as
climate change, decarbonization, human rights, poverty, andeconomic disparity. Strengthening sustainability management
is an imminent issue.

Opening of the New Head Office
In December 2021, we opened the new Head Office building
after completing a four-year reconstruction project.
As a base of regional communication and co-creation,
it will also realize new workstyle reforms to help improve
productivity and added value, further consideration toward
the environment and biodiversity, and enhanced resiliencein anticipation of largescale disasters. In this way, it aims tobecome a symbol of sustainable growth for both Saitama
Prefecture and the Musashino Bank.

thereby achieving growth together with its customers.”
To support the increasingly sophisticated and diversified
needs of our customers, we seek to develop a shared understanding of issues in the course of our daily communication
with customers, and apply the Group’s collective capabilities
to solving those issues, while leveraging the strengths of the
networks we have built over the years and our strong personal
relationships with each customer. Moreover, we will delivercustomer satisfaction that surpasses customers’ expectations
by focusing on the creation of new businesses and services. In
parallel, we aim to enhance our earnings capabilities.

Building Sustainable Business Models
In April 2013, the Bank formulated its 10-year long-term
vision. We have continued to work single-mindedly to realize
this vision.
Aiming to become “the region’s number one bank thatcreates new value in Saitama (The Value-making Bank),”
we remain determined to establish a business model where“the Bank remains close to customers and solves their issues,

Deposits including negotiablecertificates of deposit(non-consolidated)(¥ billion)

Assets in custody(non-consolidated)(¥ billion)(¥ billion)

951.8

4,797.6
4,674.0

4,288.4

FY2018Loans(non-consolidated)

896.4

4,360.8

FY2019FY20203,802.3

FY2021

822.8

828.1

FY2018FY20193,535.5

FY2020

FY2021FY20183,854.3

3,584.5

FY2019FY2020

FY20217

Furthermore, as a local bank, we cannot realize the Bank’s
growth without ensuring the region’s sustained development.
Amid an aging society with fewer children and a declining
population, banks have an extremely significant role to playin revitalizing the economy and society, meaning regional
creation. The Bank will collaborate with various stakeholders
including not only government as a matter of course, but also
educational institutions and the non-profit sector. We willserve as a coordinator and work actively on priorities suchas identifying and creating new local resources, promoting
industry, and expanding the non-resident and resident
populations.
In addition, guided by the Musashino Bank Sustainable
Development Goals Declaration, we are focusing on proactive measures to realize a sustainable regional economy andsociety. We will continue to build unique business models
through unwavering efforts to create new value, whileremaining close to customers and communities.

working to achieve over the past few years, underpinned by
our aim of serving as “a bank always close to customers andcommunities” and “a bank that cherishes employees andhelps them grow.”

Branch Networks
Looking at specific initiatives, I would first like to discuss
our branch networks. We aim to provide services optimally
tailored to our customers, pursuing approaches aligned withcharacteristics of localities such as by setting up branches
inside commercial facilities, organizing neighboring branches
into business units, and adopting a branch within a branch
structure, while maintaining the network we have built todate.
In addition, we are continuing to strengthen our efforts
in areas with growth potential, particularly in Ikebukuro,
Shibuya and elsewhere in central Tokyo, and in locations
bordering Saitama Prefecture.

Rebuilding Our Sales System

Medium-term Management Plan
“MVP 70”

We have been making progress in establishing a sales systemthat provides optimal solutions. This has involved clearly
defining roles of personnel assigned to our respective corporate and individual customers.
Meanwhile, we plan to complete the training of 120
professional human resources by the end of fiscal 2022, byencouraging them to obtain practical business know-how
at our Head Office and branches based on the Training
Solutions Program, the Bank’s own human resources program.

The Medium-term Management Plan “MVP 70” started in
April 2019 as the final step in realizing the long-term vision.
The plan has been in operation for three years, and is now in
its final year.
We plan to complete the execution of the plan by further
accelerating the business model reforms we have been

Profit attributable to owners of parent/
Net income

Dividend payout ratio and annual dividend
FY2018 FY2019 FY2020 FY2021(¥ billion)

9.0
8.0

8.0
7.0

5.3

Consolidated ROE

8.3

7.3

Dividend
payout ratio (%)

57.0

Annualdividend (Yen)

80

37.7
80

36.6
80

36.2

3.4%

3.3%

FY2019FY2020

90

3.6%

2.2%

4.7

Shareholders return ratio
FY2018 FY2019 FY2020 FY2021

FY2018FY2019Consolidated
Non-consolidated

8

FY2020

FY2021

Shareholders
return ratio (%)

57.0

37.7

36.6

FY201836.2

Consolidated
Non-consolidated

FY2021

Initiatives for Corporate and Individual Customers
The Bank has been responding to customer needs accurately
by providing fine-tuned solutions with a diverse lineup of
products and services.
For corporate clients, we will further enhance solutions in
response to issues such as recruitment and digital transformation (DX), while working on consulting in areas such as
business succession through M&A and business restructuring
using government subsidies.
For individual customers, we support the need for seamless inheritance and business succession with a full lineup of
our own financial products that include testamentary trusts
and monetary trusts and continue to focus on services that
include our financial instruments intermediary operations inaddressing their asset formation and asset management needs.

commitment from management, and set up new dedicatedorganizations to supervise and promote cross-divisional
initiatives.
Furthermore, as an initiative to encourage sustainability
management among business operators in our hometown of
Saitama, we are working to provide optimized support menus
tailored to the status of initiatives in individual companies, aswell as their scale, industry, and other characteristics, dramatically expanding our line-up of finance and consulting services.
In other efforts, we are also addressing the themes of
biodiversity and natural capital, which are the subject ofincreasing global attention. At our new Head Office building,we have obtained biodiversity certification for greeneryinstallations, and we are conducting leading initiatives as an
example to business operators in Saitama Prefecture.

Digital Transformation (DX)

Creation Strategy and Regional Revitalization

We have been actively enlisting a range of ever-evolving
technologies with the aim of facilitating further growthin the rapidly progressing and developing field of digitaltransformation (DX).
In October 2021, we became the first regional financial
institution in the Tokyo metropolitan area to receive Digital
Transformation Certification, followed in February 2022 bybecoming the first regional bank to be certified under theBusiness Adaptation Plan under the Act on Strengthening
Industrial Competitiveness.
In keeping with our recognition as a business operator
taking on the challenge of DX, we are currently rolling out
several focused initiatives by project teams simultaneously.
We will continue to engage with a sense of urgency inefforts to improve customer satisfaction while increasing
productivity and efficiency, such as adopting a new branch
office system that incorporates tablet devices, making it possible for customers to perform various banking transactions
by using our Musashino Bank App smartphone application,and shifting to digital loan contracts.
We are also working to build and utilize a data warehouse
as a necessary preparation for realizing personalized proposals
for individual personal and corporate clients.

We continue to focus on developing business models of local
production for local consumption and creating virtuous
cycles for regional economies in partnership with government
administrations, private-sector companies, NPOs, such as
the Minuma Tambo project utilizing fallow land in Saitama
City, which was initiated in 2014, and a project to energize
the local economy through tourism in an industry-academic
partnership with Rikkyo University.
Furthermore, in June 2022, the Bank established aregional trading company, The Musashino Mirai Partners.
As the culmination of its creation strategy, the Bank will aim
to solve local issues through business and build a local eco
system that will bring about a beneficial economic cycle.
The Musashino Mirai Partners, which started operationsin October 2022, will solve issues by connecting increasingneeds for living support such as housekeeping services as
people advance in age with locally operated services through amembership-based system.
Moreover, for business operators, we plan to develop support services that go beyond the traditional scope of businessmatching by banks, such as trial marketing by crowd funding.

Sustainability
The Bank is treating sustainability alongside DX as a toppriority theme connected with the future, and is accelerating
its initiatives under its “SDGs Declaration” and its “Basic
Policy on Sustainability,” formulated in December 2021.
As a system for sustainability promotion, we have established the Sustainability Promotion Committee as a clear

Human Resource Development
The Bank believes that human resources are the key todifferentiating itself from other financial institutions. We
are working to create an environment where all employees,
including younger staff and women, can improve their skills
and abilities and obtain a high level of job satisfaction. We arealso fully committed to promoting diversity. Proactive steps
are being taken to enhance the work-life balance of employees,
including encouraging staff to take all of their childcare leave.

9Alliance Strategy

Continuing to Grow Together with Communities

The Chiba-Musashino Alliance is a comprehensive alliance
between The Chiba Bank, Ltd. and Musashino Bank, bothof which are based in the Tokyo metropolitan area. The
TSUBASA Alliance is a wide-area alliance of 10 regionalbanks representing various areas across Japan. We are striving
to further accelerate efforts under our growth strategy by fully
harnessing the strengths of each of these alliances.
In the Chiba-Musashino Alliance, based on the new
five-year plan starting from fiscal 2021, we aim to further
accelerate alliance measures, such as financial instrumentsintermediary operations, structured finance and joint financing, as well as joint office initiatives within Tokyo.
The alliance made a strong start in the first fiscal year of
the five-year plan with a total effect for both banks of ¥4.6
billion. We will accelerate our initiatives towards further
engagement in the alliance business model.
Under the TSUBASA Alliance, we are striving to solve
issues by utilizing the strengths of a wide-area nationwide
alliance extending from Hokkaido to Okinawa.
We are making steady advances in collaboration on
Fintech, cashless payments, and anti-money laundering. Allof the alliance banks are dispatching human resources to a
Business Strategy Department established at a joint venture
to conduct business planning with timely themes such as DX
and diversity.

In April 2022, Musashino Bank celebrated its 70th founding
anniversary. In reaching this milestone, all of the Bank’s officers and employees would like to extend our sincere thanks
to our clients, the local community, and our shareholders fortheir support and loyalty.
The Bank started in April 1952 as a regional bankheadquartered in Omiya City (currently Saitama City).
Responding to expanding demand for finance as the post-war
recovery hit full stride, the Bank started with eight branches
in Saitama Prefecture, aiming to contribute to the development of the prefectural economy.
From that time up to the present, the Bank has continued
to firmly support autonomous, independent managementwith the support of its stakeholders, under its unwavering
Corporate Philosophy of “working in harmony with the local
community it serves” and “maintaining a deep respect toward
customers.”
Now as we mark our 70th founding anniversary, ourofficers and employees are ready to work together with all of
our stakeholders, including customers, shareholders, and the
local community, to create the future of Saitama Prefecturewith the same enterprising spirit and single-minded passionthat has always characterized the Bank since its foundation.
Finally, we will strive to achieve sustainable growthby meeting the expectations of each and every one of our
stakeholders, including our customers, shareholders, local
community residents, employees and their family members.

Securities Strategy
With regard to securities, the Bank aims to build a flexible
portfolio in response to recent market trends and fundpositions. We will manage our assets while taking interest risk
into account amid an environment characterized by rising
global interest rates and increased volatility in risk assets suchas equities.

Refining Corporate GovernanceWe believe corporate governance is the starting point for allof our efforts to increase corporate value. Based on this belief,
we are working to ensure even more highly transparent management through measures such as actively bringing onboard
a broad range of experience and knowledge possessed byoutside directors and outside corporate auditors and working
to ensure the effectiveness of the Board of Directors.
Moreover, we are taking active steps to raise thesophistication of risk management, bolster complianceand address new issues such as anti-money laundering andcybersecurity. Another priority is to enhance communication
with stakeholders.

10

Kazumasa Nagahori
PresidentLong-term Vision/Medium-term Management Plan
The Bank started the medium-term management plan “MVP 70” in April 2019 as the final phase of its long-term vision to be“the number one bank in the region that creates value in Saitama,” focusing on objectives that include providing optimal solutions closely aligned to the needs of corporate and individual customers and developing highly specialized human resources.

Long-term Vision: “MVP (Musashino Value-making Plan)”

The number one bank in the region that creates value in Saitama— The Value-making Bank —By creating value in Saitama, lead the economic development of Saitama,
and also grow ourselves by responding to the expectations of our customers
Medium-term management plans

Phase 3 (4 years)

Phase 1 (3 years)

Phase 2 (3 years)“MVP 1/3 (One-Third)”“MVP 2/3 (Two-Thirds)”(April 2013–March 2016)(April 2016–March 2019)

Enhance readiness to become
the number one bank in the region

Establish our reputation as thenumber one bank in the region

Medium-term management plan
“MVP 70”
Maintain our overwhelming
position as the number one bankin the region

Main Initiatives under the Medium-term Management Plan “MVP 70”
Key Strategies

Action Plan●E xhibit substantial expertise

Evaluation
Support involving diverse
financing arrangements andbusiness matching, seamlessbusiness succession andoverseas expansion

in respective customer
segments●B uild a customer-oriented
network●C arry out branch improveInheritance and wealth succesGrowth strategy
ments with emphasis on com- sion, asset management and(individual customers)
munication with customers asset formation, life planning
Growth strategy(corporate clients)

Digital transformation(DX)

Sustainability(ESG/SDGs)●D evelop more sophisticated digital services●R eform overall banking operations to increase productivity●S trengthen system for sustainability promotion●E ncourage sustainability in local companies

Results (FY2021)◎● No. of corporate borrowers: 21,009 companies● Support for developing sales channels: 1,992 companies● Recruitment contracts: 72 cases● Support for business succession: 159 companies● Support for M&As: 413 companies◎● No. of applications filed for testamentary trusts, etc.: 843● No. of customers with assets in custody: 111,742◎● Enhanced smart phone app functions● Built and utilized data warehouse● Business Adaptation Plan Certification under the Act on Strengthening◎

Industrial Competitiveness and Digital Transformation Certification● Formulated Basic Policy on Sustainability, etc.

Established Sustainability Promotion Office● Expand lineup of finance and consulting products and services● Head Office building acquired Japan Habitat Evaluation and Certification

Program (JHEP) certification for biodiversity evaluation●S olving issues through stimulation of the local economy

Creation strategy

in partnership with local governments, companies, anduniversities, etc.

●C reation of a virtuous cycle of local production for local○

consumption

Human resource
strategy● Develop professional talent● Create a rewarding workplace organization

Management and● Achieve highly transparent corporate governanceadministration systems○○● Comprehensive alliance agreements between Saitama Prefecture and 16

municipalities● Distributed over 400,000 copies of town walking maps for local tourist attractions● Achieved sixth-order industrialization through projects undertaken since 2014
● No. of hands-on professionals developed through the Training Solutions

Program: 90● No. of employees obtaining qualifications as 1st Grade Certified Skilled

Professional of Financial Planning and Small and Medium EnterpriseManagement Consultant: 163● Ratio of outside directors: 37.5%● Ratio of outside corporate auditors: 60.0%

New Business Challenges• Provide stronger core business support for local companies amid prolonged COVID-19 pandemic and price escalation• Build new business models that account for deregulation, etc.
• Accelerate the pace of digital transformation (DX) even further• Take greater initiative in energizing the local economy and regional revitalization• Take action as a regional financial institution in addressing climate change and decarbonization
Quantitative Results and Targets
Net earnings from core business
Earnings
Core OHR
ROE
Equity ratio

FY2019¥11.5 billion¥7.0 billion
74.38%
3.09%
8.13%

FY2020¥14.8 billion¥7.3 billion
69.19%
3.14%
8.19%

FY2021¥15.9 billion¥8.3 billion
67.61%
3.49%
8.11%

FY2022¥15.0 billion¥10.0 billion
70% or less
4% or more
8% level
11

Operational Base of Saitama Prefecture/Alliance Strategy
Musashino Bank’s Operational Base

Alliance Strategy

The Bank’s operational base is Saitama Prefecture, which hasa high concentration of logistics and production bases due to
its well-developed transportation infrastructure, including the
Ken-O Expressway and a nexus for all six of the Shinkansenbullet train lines in East Japan. Total production in Saitama
Prefecture is around ¥23 trillion, making it the fifth largest
prefectural economy in Japan. A large number of companies
have relocated there from outside the prefecture, with the netincrease from corporate relocations over the 10-year period from2012 to 2021 standing at 591 companies, the second highest in
the country. In this environment, the Bank recognizes that its
mission is to promote locally rooted finance, and we strive toprovide our corporate clients with a smooth supply of funds andother support for their core operations.

Following the Chiba-Musashino Alliance, the Bank has now
entered into the TSUBASA Alliance. While fully leveraging
the benefits of wide-area partnerships, we will further accelerate strategic alliances, contributing to the sustainable growthof regional society through the provision of high-value-added
financial services to customers while firmly retaining
autonomy in management.

NaganoPrefecture

Yamanashi
Prefecture

SaitamaPrefecture(fiscal 2021–fiscal 2025)
Mission:

IbarakiPrefecture

Provide value-added and highly convenient services to customers and communities by integrating ideas from both banks

Tokyo
Kanagawa
Prefecture

The Bank has formulated a new five-year plan that began in
April 2021 as the second phase on the fifth anniversary of the
Chiba-Musashino Alliance, a comprehensive business allianceconcluded with Chiba Bank in March 2016. We will refine
the partnership into an alliance as a model for deeper regionalbanks collaboration.

New Five-Year Plan
— Model for Deeper Regional Banks Collaboration —Tochigi
Prefecture

Gunma
Prefecture

Chiba-Musashino Alliance

Vision:Realize the evolution of regional banks as a frontrunner inregional banks collaboration

Chiba
Prefecture

Alliance effect:
Total of ¥15 billion between both banks (fiscal 2021–fiscal 2025)

TSUBASA AllianceAn expressway and railway networkthat extends all over Japan

Expressway
Railway (Shinkansen)

NaritaInternational Airport
Tokyo
International Airport(Haneda)12

The TSUBASA Alliance, Japan’s largest alliance of regionalbanks with participation from 10 banks representing different
regions from Hokkaido to Okinawa, involves working together
on new measures such as increasing the sophistication of financial services, digital transformation (DX), and cashless banking.
Furthermore, we also utilize the strengths of this wide-areaalliance to support customers with services such as M&A
matching, overseas expansion, and new business development.
At the joint venture TSUBASA Alliance Co., Ltd., established in July 2020, the participating banks have dispatchedrepresentatives to bring together the knowledge of each bankand further increase the sophistication of alliance measures.
Moreover, in April 2022, we announced the TSUBASADiversity and Inclusion Declaration. In August of the same
year, we established the TSUBASA Cross Mentor Program,to nurture female leadership candidates through cooperation
across participating banks aimed helping them to build
careers and develop leadership skills.
• Musashino Bank
• Chugoku Bank
• North Pacific Bank
• Gunma Bank

• Chiba Bank • Daishi Hokuetsu Bank• Iyo Bank
• Toho Bank
• Shiga Bank • Bank of The Ryukyus

Providing SME Management Assistance
Promoting Locally Rooted Finance
The Bank recognizes the promotion of locally rooted finance as its mission, and works to implement smooth supply of funds andto its customers and to provide core business support.
The Bank has established systems for providing solutions for general management issues that customers face during their
growth stages, through united efforts by its branches, Head Office, and group companies. It also provides finely tuned responses
by leveraging its consulting functions while collaborating with external institutions as needed.

Support for Start-Ups and New Entries
The Bank provides detailed support through close cooperation between our “support team for start-ups and new entries” in our
Head Office and branches to assist start-ups and newly established companies.

Offering a Variety of Financing Methods
The Bank has focused on offering a variety of financing methods, including project financing that provides funding after
focusing on the cash flow of a business, private placement bonds that result in improving the corporate image of a company
conducting fund procurement, and Asset-Based Lending (ABL) that makes use of the customer’s product inventory, accounts
receivable or suchlike.

Business Evaluation
Using business evaluation charts and business evaluation tools in conjunction with i Connect Partners, the Bank accurately grasps
the management issues and potential needs of individual companies in order to further enhance core business support such as
management planning, consulting and other services.

Recruitment Service

Recruitment Results (Cases)
506

We introduce the most suitable human resources who will contribute to our corporateclient’s business expansion and new business development.
Since January 2022, we have expanded the service to the area of job seeker support toprovide comprehensive support for both job seekers and companies looking for personnel.

384

72
Recruitment requests
Contracts

20
FY2020Support for Overseas Expansion

FY2021

We set up a Representative Office Registered in Singapore to support corporate clients’ overseas expansion and business development and address local demands in a flexible manner. Moreover, we provide detailed support through our overseas network basedon collaboration and cooperation.
In addition, we dispatch employees to JETRO Saitama, and actively support the expansion of sales channels for companies in
Saitama Prefecture while collaborating with the JETRO Saitama center.
Funding

Overseas moneytransfers

Sales channel
expansion

Export and importprocedures

Various local
information

Support for Business Succession
We have arranged consulting services to offer comprehensive support to address such concerns as succession issues, businesssuccession and diversification. We also provide support proactively in coordination with specialist institutions.

M&A Support

Number of M&A Consultations

We offer corporate clients optimal proposals for their future in collaboration with
Nihon M&A Center Inc., the Saitama Prefectural Business Succession Support
Center, and others.

832

132

157

FY2017FY2018307
FY2019415

FY2020

FY2021

Establishment of a Regional Trading Company
In June 2022, we established the regional trading company Musashino Mirai Partners Co., Ltd. The company is working to provide lifestyle-related services forseniors and to support commercial distribution with a view to stimulating local industries, with an overall aim of building a local ecosystem that will provide
local solutions to local issues and create a virtuous cycle for the economy.

Personal support businessBusiness supporting commercial distribution

Membership-based lifestyle support services

Crowd funding website
13

Contributing to the Local Economy/Initiatives for Regional Revitalization
Contributing to the Local Economy
The Bank is working to provide various financial services that give consideration to local corporate and individual customers, andcontinuing to increase both deposits from the region and loans for the region.
The Bank is strengthening its capital adequacy and reducing non-performing loans towards a sounder financial position. Its
non-performing loan ratio has gradually decreased, and is at a low level.
Deposits from region/
Ratio of deposits from region (Non-consolidated)

Loans to region/Ratio of loans to region

Non-performing loans(Non-consolidated)(Non-consolidated)(¥ billion)(¥ billion)

98.36%

4,063.1

FY2018Deposits from region
Ratio of deposits from region

98.75%

98.80%

98.80%

4,617.9

4,740.0

85.15%

4,162.4
3,010.5

FY2019FY2020

FY2021FY2018Loans to region
Ratio of loans to region

85.44%

86.40%

87.00%

3,285.1

3,353.2

3,062.5

FY2019FY2020

FY2021(¥ billion)

Bankrupt and quasi-bankrupt assets(unrecoverable claims)
Claims on potentially bankrupt borrowers
Substandard loans
Ratio of loans subject to mandatory disclosure ofclaims under the Financial Reconstruction Law

17.1

12.1

14.6

15.0

32.7

31.6

36.0

34.9

1.98%

1.98%

1.93%

1.90%

20.9

27.9

23.4

24.1

FY2018FY2019FY2020

FY2021* “Region” refers to Saitama Prefecture and the areas bordering the prefecture which are a part of the economic and local-living sphere (the Kumegawa Branch, Itabashi Branch,
Ikebukuro Branch, and Goka Branch sales areas).

Initiatives for Regional Revitalization
As a regional financial institution, the Bank recognizes initiatives for regional revitalization to be one of the most important tasks, and not
only supports the initiatives of local public entities but also collaborates with government administrations, private-sector companies, NPOs,
educational institutions and other bodies to solve a variety of regional issues and to create regional value as one leader in regional creation.
Alliances and Partnerships with Local Government Organizations, Etc.
Prefectures

Saitama Prefecture

Designated Municipalities

Saitama City

Municipalities (in order ofalliance formation)

Tsurugashima City, Toda City, Yokoze Town, Gyoda City, Kumagaya City, Kasukabe City, Konosu City, Hasuda City,
Kitamoto City, Yorii Town, Ogano Town, Fujimi City, Kawagoe City, Fujimino City, Soka City

Support through an industry-academia-government alliance
We help to solve corporate clients’ managerial issues such as research development and management reorganization through alliances with eight universities located within the prefecture, focusing on fields such as manufacturing and industry, and advanced engineering and academic fields. Furthermore, the Bank is working on
regional revitalization through tourism in cooperation with the Rikkyo University College of Tourism. Together
we have created the “Bratte Series” of town walking maps, which has been published in 10 volumes.
The “Bratte Series”

Creation of a new industry—The Minuma Tambo“Wheat” Senary (Sixth-Order) Industry Creation ProjectIn 2014, we started the “Minuma Tambo ‘Wheat’ Senary Industry Creation Project,” aiming to create a new
industry and revitalize wheat production at Minuma Tambo in Saitama City. The project has been working incollaboration with local food processors to commercialize products such as craft beer and bagels.
Craft beer

Initiatives to solve local issues
Under a collaboration agreement with Saitama City, the Bank will provide its Head Office building
as a temporary accommodation facility for 200 persons who have difficulty returning home in a
major disaster. Furthermore, we will also provide food and water, blankets, and other supplies, as well
as facilities such as toilets and running water.
Space to accommodate persons who havedifficulty returning home in a major disaster14

Sustainability Management Initiatives
The Bank proactively embraces Environmental, Social, and Governance (ESG) perspectives in regard to its management, andfocuses on initiatives that take sustainability into consideration. With a view to embedding these initiatives more deeply andmaking an even greater contribution to the region, we have formulated the Musashino Bank Sustainable Development Goals
Declaration. Guided by this declaration, we will continue to make efforts towards realizing sustainable local communities while
responding to our stakeholders.

Musashino Bank Sustainable Development Goals Declaration
The Musashino Bank Group declares that all of its officers and employees will strive to contribute to achieving the objectives of the Sustainable Development Goals (SDGs).
• To contribute to the sustainable development of the regional economy, the Bank always exercises its
financial intermediary functions and commitment to customer-oriented business operations.
•To contribute to the creation of a sustainable community including industry and employment, urban development and livability, the Bank engages in partnerships with various bodies, including municipal governments, companies and NPOs.
• The Bank regards issues such as climate change and human rights as having a direct effect on it, and seeks global sustainability.

Vision for the Bank (Key Areas)
Corporate Governance as the Source ofSustainable Growth

A Society in Which People Can Live Their
Own Way for as Long as They Wish

The Bank positions corporate governance as the source ofsustainable growth, and aims to conduct
steadfast bank management grounded on
its management philosophy, which has
remained unchanged since its founding.

The Bank will actively work to create a society inwhich all people can live in their own way, healthily
and happily.

Sustainable Regional Economy
The Bank will promote innovation in local industry and local
production for local consumption, as well as contributing to
the development of comfortable,
strong towns and working to realize sustainable economic growth.

Responding to Climate Change, Maintaining
and Improving Biodiversity
The Bank will respond to global climatechange and make efforts to maintain andimprove the rich local biodiversity.

Sustainability Management Initiatives
Formulation of the Basic Policy on Sustainability, etc.
In December 2021, we formulated four policies for promoting sustainability management, which we will translate into morepractical initiatives.
Name
Basic Policy on
Sustainability

Overview
Under its Corporate Philosophy, “working in harmony with the local community it serves” and “maintaining a
deep respect toward customers,” the Bank aims to achieve stimulation of the local economy and to provide
both economic and social value from a medium- to long-term perspective.
Environmental Policy All of our officers and employees are engaging with the issues of climate change, decarbonization, andbiodiversity through business activities, adopting a global perspective while also giving consideration to the
local characteristics of the Saitama region.
Investment andWe will avoid financing industrial and corporate sectors that have a negative impact on environmental,
Financing Policysocial, and economic sustainability.
Human Rights Policy In all of our business activities, and provision of products and services, we will respect the human rights anddiversity of all of our stakeholders.

System for Sustainability Promotion
Along with the establishment of the Sustainability Promotion Committee in September 2021, we are creating a system for promoting
sustainability management, including announcing our endorsement of the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD). In March 2022, we established the Sustainability Promotion Office as a department responsible formanaging and promoting initiatives across the Musashino Bank Group, and we are now developing approaches with a sense of urgency.
15

Response to the TCFD Recommendations
The Bank endorsed the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) in September
2021. We have positioned climate change initiatives as an important management priority, and having built a governance andrisk management system, we are striving to ascertain the opportunities and risks brought by climate change.
Furthermore, we conduct appropriate disclosure of information in accordance with the recommendations. In July 2022, weestablished new “Sustainable Finance Amount Targets” and “Greenhouse Gas (GHG) Emission Reduction Targets.”

Sustainable Finance Amount Targets
The Bank has set target amount for the execution of sustainable finance transactions that contribute to the decarbonizationof local communities. We aim to execute a cumulative total of ¥1 trillion in sustainable finance transactions over the 10 years
from fiscal 2021 to fiscal 2030.
In fiscal 2021, the Bank executed ¥23.4 billion in sustainable finance transactions. Sustainable finance is finance in which
the funds are used for resolving environmental or social issues, and includes finance to support customers’ ESG or SDGs
initiatives.

Greenhouse Gas (GHG) Emission Reduction Targets (CO2 emissions)
The Group’s CO2 emissions are shown in the graph. The Group’s overall CO2 emissions for fiscal 2021 (Scope 1 + Scope 2)
were down 19.9% from fiscal 2013. Our CO2 emissions target for 2030 is a reduction of 70% from fiscal 2013 levels.
Musashino Bank Group CO2 emissions*

Emissions by scope for the past three years

8,180t

FY2019–19.9%
6,724tFY2020

FY2021

Scope 1

859

732

773

Scope 2

6,080

5,992

5,777

Scope 3*6,550t(t-CO2)

Total CO2 emissions

—

—

—

6,939

6,724

6,550

* Scope 3 emissions have not yet been calculated.

FY2013

FY2020

FY2021* Data is unavailable for certain affiliates.

Initiatives to Encourage Customers’ Sustainability
To encourage sustainability management among local firms, we have a line-up of diverse finance and consulting services tailoredto the status of initiatives in individual companies.
Strengthening Support through Consulting
SDGs assessment support

Decarbonization consulting

SDGs consulting

Sustainability-linked loans

Sustainability framework loans

Other

Expand Finance and Loan Products
SDGs private placement bonds

Other

Biodiversity Initiatives
The Bank has focused on maintaining and improving biodiversity through initiatives aimed at promoting further greenery in
the region, including the utilization of a public trust scheme. Social demands related to consideration for biodiversity are set toincrease going forward, and the Bank aims to enhance its initiatives in this area further.

Subsidies Provided by Musashino Bank Green Fund Public Trust
The Musashino Bank Green Fund public trust was established in July 1992 with the goal of contributing to the creationof beautiful and comfortable living environments by subsidizing activity funds for businesses that aid the preservation andcreation of natural environments within Saitama Prefecture.
In April 2022, we provided a total of ¥2.41 million in subsidies to 17 organizations.
Businesses Eligible for Subsidies
1. Businesses that contribute to the preservation or creation of natural environments
2. Businesses related to the spread of awareness considered necessary for preservation or creation of natural environments
3. Investigative research necessary for promoting natural environment preservation and creation activities

16

Increasing the Value of Human Capital
Under the Medium-term Management Plan “MVP 70,” which started in 2019, the Bank aims to serve as “a bank always close tocustomers and communities” and “a bank that cherishes employees and helps them grow.”
Recognizing that it is human capital that is the source of corporate value, we have established coherent human resource
development systems from young to senior employees, and we are making a concentrated effort to enable every employee to findmotivation in working in their own way and achieve their potential by promoting work-life balance and diversity, and expanding
opportunities for self-education and skills development, among other initiatives.

Developing Specialists
Developing Reliable Specialists
One of the key measures of our human resource strategy under Mediumterm Management Plan “MVP 70” is the introduction of a Training
No. of 1st Grade Certified Skilled Professional of Financial Planning andSolutions Program. Through the program, we are working to develop highly Small and Medium Enterprise Management Consultant (Persons)163
specialized human resources by having them obtain practical business know154
145
how at our Head Office and branches. Over the four years to fiscal 2022, we
127
have trained 120 personnel and assigned them to core branches.
We are also systematically developing reliable specialists such as financial
planners and small and medium enterprise management consultants. In
addition, we are encouraging employees to obtain qualifications to tackle
advanced issues, such as “M&A Senior Expert” and “IT Passport.”
19/3

Diversity Initiatives

20/3

21/3

22/3

In 2016, the Bank formulated a long-term vision to promote the active participation of human resources, setting numericaltargets including a ratio of female managers and a ratio of annual paid leave used with the aim of creating a workplace where
diverse human resources could flourish. In addition, we are engaged in various initiatives to improve customer satisfaction by
utilizing the viewpoints and mindsets of diverse human resources to improve customer services.
Ratio of female managers

19.4%

20.8%

21.6%

Average length of service for women

25.0%

FY2019 FY2020 FY2021 FY2022

Ratio of men taking childcare leave

12.9 years13 years
12.5 years
12.1years

100%

FY2019 FY2020 FY2021 FY2022

FY2019 FY2020 FY2021 FY2022

100%
84.8%

84.8%

Special Subsidiary The Musashino Harmony Co., Ltd.
The Musashino Harmony Co., Ltd. was established with the goal of increasing opportunities for people with disabilities to play arole. The company currently has seven employees and its operations include printing business cards and making novelty items.
We strive to create a workplace that is motivating for all employees by enabling them to use their special talents and providing
solid support.
Main Business Activities• Novelty goods production services• Office supplies such as rubber stamps• Business card printing services• Business process outsourcing services such as data input

Workstyle Reform at Head Office Building
We have created office floors as open spaces without partitions, and each level being connected by an internal staircase. The
design aims to stimulate communication with vertical and horizontal activity and enable even greater creativity. In addition, eachlevel has a function-specific area to promote mental and physical health as well as self-improvement.

Wellness area for promoting health and wellness

Library area for accumulating knowledge andengaging in self-directed study

Café area for relaxation and refreshment

17Communication with Stakeholders
Musashino Bank aims to promote higher quality business operations and corporate activities, and to increase its corporate value throughcommunication with various stakeholders, including customers, shareholders and investors, employees, and local communities.

Customers

Shareholders
and Investors• Creating branches that are convenientand accessible for consultation• Initiatives to increasecustomer satisfaction• General Meeting of Shareholders• Investor meeting presentations• Publication of information bulletin

Employees

Local
Communities• Awareness survey and questionnaire• Proposal system• Dialogue through working groups
and task forces• Various community contribution activities• Utilization of regional revitalization space• Financial literacy education• Promotion of culture and sports

Communication with Customers
We will focus on initiatives to enable all customers to use our services with greater confidence and comfort. By listening to customer
feedback, we will strive to enhance our services and develop our human resources with a view to increasing customer satisfaction.

Communication with Shareholders and Investors
We value the dialogue we have at general shareholders’ meetings and investor meeting presentations. We also publish an
integrated report and mini-disclosure booklet, as well as a website, in order to promote deeper understanding of the Bank and to
disclose information appropriately.

Communication with Employees
We are working to improve our operations by reflecting feedback from our employees through measures such as conducting
awareness surveys and questionnaires, as well as operating a proposal system and so forth. We also create opportunities for
dialogue between employees and management by calling for participation in working groups and task forces. In this way, we are
actively incorporating employees’ opinions in management.

Communication with Local Communities
We actively engage in various community contribution activities, while also using the regional revitalization space at our Head
Office to focus on regional communication and co-creation. Moreover, we are also actively engaged in initiatives such as financial
literacy education and promotion of culture and sports.

Regional Revitalization Space — M’s SQUAREAt the regional revitalization space, M’s SQUARE, on the second floor of the Head
Office building, we host panel exhibitions in coordination with local governments
and organizations in Saitama Prefecture and disseminate information about theattractions of the region and challenges to be addressed.

SDGs panel exhibition

Exercise classes to promotehealth and wellness

Financial literacy class forelementary school students

Career seminars for high school
students

Supporting Children, Who Are the Future
We actively provide opportunities for children to learn about the role of money
and the banking business by providing a workplace experience for study andholding finance classes. We also continuously run career seminars and internships
to encourage awareness of work among young people.
18

Corporate Governance
Enhance Management Oversight Systems

Management Advisory Committee

Musashino Bank recognizes that upgrading and expanding
its corporate governance capabilities are key priorities ofmanagement. In addition to adhering strictly to a policyof compliance with statutory and regulatory requirements
as well as in-house rules and regulations, every effort ismade to ensure that the Board of Directors and the Boardof Corporate Auditors stringently monitor directors in theexecution of their duties. Three outside directors and threeoutside corporate auditors with abundant knowledge andexperience have been selected to monitor and audit directors
in the execution of their duties. They also take part inmeetings of the Board of Directors where they are able toproactively voice their opinions and offer advice on management from a broad, independent and neutral perspective.
This ensures that the management monitoring function isboth objective and impartial.

The Management Advisory Committee was established as anadvisory function to the Board of Directors. The committee
is made up of eight people: three outside directors, including
the committee chair, three external experts (the Bank’s
independent outside corporate auditors), and two internal
directors. It deliberates on matters related to the selection,
dismissal, and remuneration of directors. The Board of
Directors reflects the deliberations of the committee in its
decision-making.

Corporate Governance Structure (As of July 1, 2022)

General Meeting of Shareholders
Assignment

Management
Advisory
Committee

Assignment

Inquiry
Audit

Board of Directors
Directors

Board of Corporate Auditors
Corporate auditors

ReportSupervision

Discussion

ReportDiscussion

Assignment

ReportBusiness execution functions
Executive Committee

Indication/
Verification
Compliance Committee

Audit

Accounting auditors

Executive officers

Head office/Branches

Audit

AdviceAuditing Division

Law officeLicensed tax accountants

19Compliance
Compliance Framework
The social and public mission of the banking business makes
high demands for operations based on fair and transparent
corporate activities in compliance with laws, regulations,and social norms and in accordance with the principles ofself-discipline and self-responsibility. Accordingly, the Bank
considers the thorough compliance of its directors andemployees in business operations to be a top priority, and to
this end management is actively involved in the fulfillmentof the Bank’s social and public mission as the Bank works
to strengthen its compliance framework through steps suchas system improvements and the establishment of teaching
methods.
In the future, the Bank will further strengthen its corporate activities based on a strong sense of ethics and integrity
and its management approach in accordance with principles
of self-responsibility as it further strengthens the complianceframework so that the Bank’s daily business activities andactions ensure compliance with laws, regulations, and social
norms.

Basic Compliance Policy
Musashino Bank’s basic compliance policy entails that officers
and employees go about their daily duties in accordance with
the Bank’s two fundamental management guidelines, namely
its Corporate Philosophy and Code of Behavior.
Under its unwavering Corporate Philosophy, the Bank
strives to work in harmony with the local community it
serves while maintaining a deep respect toward customers.
As a local bank in Saitama Prefecture, we continue tocontribute to the local community and society. Furthermore,
the Code of Behavior is founded on “the public mission of
the Bank” and stipulates “provision of high-quality financial
services,” “compliance with laws, regulations, rules, etc.,”“open business management through communication withsociety,” “respecting the personalities of employees,” “tacklingenvironmental problems,” “tackling social contribution
activities,” and “resolute responses to anti-social forces,” anddirectors and employees go about their daily duties guided bythese basic policies.

Compliance Management Structure
The Legal Affairs Office of the Risk Management Division
serves as the compliance management department for the
Bank. This office undertakes the uniform management of alllegal issues relating to compliance while providing instructions based on investigation and research. At the same time,
the office coordinates with officers responsible for legal compliance appointed to all branches while working to strengthen
the compliance structure. Regular meetings are held with theofficers responsible for legal compliance appointed to eachbranch in order to improve the level of compliance throughthe sharing of information and training, and meetings arealso held each month with the officers responsible for legal
compliance in the head office and each department. These
20

meetings serve as a forum to deliberate on compliance issues
and to share information.
In addition to the aforementioned, periodic compliancechecks are undertaken at each branch by the officers responsible for legal compliance. In this manner, the Bank has put
in place a mechanism that is capable of grasping the status ofdaily compliance management.
Furthermore, Musashino Bank has established theCompliance Committee with the president of the Bank serving as the chairperson, which serves as the organization thatchecks the status of compliance on a Bank-wide basis whileconsidering any and all other important matters throughregular meetings. In addition, the committee evaluates andchecks on the progress and implementation status of the“Compliance Program” approved by the Board of Directors.

Compliance ManualTo ensure the compliance of its officers and employees, theBank has distributed a compliance manual that has been
approved by the Board of Directors to all of its officers andemployees and is working to ensure that all staff members are
fully aware of its contents.
The compliance manual contains sections on the Bank’s
Corporate Philosophy, Code of Behavior, and basic policies.
It contains a section on compliance standards that stipulates
the matters officers and employees should comply with, asection on the compliance framework that provides an explanation on various structures at the Bank including educationand verification structures, a section on laws and regulations
that require directors’ and employees’ compliance, and whichcontains an explanation of the laws and regulations that Bank
employees are required to be knowledgeable of, and a pick-up
compliance section that provides a more detailed explanationof the matters that should be prioritized in the conduct ofdaily work. The compliance manual serves as a standard formaking decisions and taking actions in everyday businessactivities.

Money Laundering—Countermeasures against
Anti-Social Forces
The Bank has positioned prevention of money launderingand financing of terrorism as important issues in its management strategy. We strive to implement countermeasuresagainst money laundering and to eliminate anti-social forces,
while working to build control structures to help withprevention through basic policies.
In addition, we provide ongoing training for all employees
to help ensure that everyone is aware of relevant laws andregulations, and takes appropriate operational measures.

Risk Management
Risk Management Policy
As the risks associated with banking operations become
increasingly varied and complex, the Bank has formulated
a set of internal management policies that take into consideration the Bank’s strategic targets, in order to ensure thatthe manner in which it manages its business is both soundand pertinent. Guided by these policies, the Bank works
diligently to manage risk.
In specific terms, the Bank classifies all pertinent risks
according to their nature and attributes. Classifications
comprise (1) comprehensive risks; (2) credit risks; (3) market
risks; (4) liquidity risks; and (5) operational risks (including
administrative and system risks). These individual risks arethen managed according to their particular characteristics andrequirements.

Management Structure by Type of Risk
(1) Comprehensive Risk Management
In order to appropriately manage the wide variety of risks
on a comprehensive basis, the Bank has established theComprehensive Risk Management Department and is working to develop and improve its management structure. The
Comprehensive Risk Management Department puts in placerules and criteria for determining the scope of comprehensive
risk management, management methods, evaluation of new
products and operations as well as the level of acceptable risk
after taking into consideration management strategies, management capacity as well as business scale and characteristics.
Based on these rules and criteria the ALM (Asset Liability
Management) and other appropriate committees monitor andcontrol risks. The results of these activities are reported to theBoard of Directors and other relevant bodies on a regular basis.

(2) Credit Risk Management
Musashino Bank has historically taken steps to maintain the
independence of the Credit Division and to build a stringent
screening and management structure in order to maintainand strengthen the soundness of its assets. At the same time,
the Bank has adopted a ranking system and endeavored to
upgrade and expand its credit risk management capabilities asa part of its efforts to establish objective decisions and lending policies on an individual transaction counterparty basis.

(3) Market Risk Management
Musashino Bank has established the Market Risk
Management Department in order to appropriately manage
market risks. Relevant steps are taken to ensure the independence of the department from the Market Management
Department and Business Promotion Division, and to establish and develop a structure that is capable of harnessing thechecks-and-balances function. At the same time, the ALM
and Credit Portfolio Management Committees deliberate as
and when required.

(4) Liquidity Risk Management
Musashino Bank has established the Liquidity Risk
Management and Cash Management Departments in order
to appropriately manage liquidity risk. While ensuring
the independence of the Liquidity Risk Management

Department from the Cash Management Department,
Market Management Department and Business Promotion
Division, every effort is made to establish and develop
a structure that is capable of harnessing the checks-andbalances function. At the same time, the ALM Committee
deliberates as and when required.

(5) Operational Risk Management
Musashino Bank confronts broad and varied operationalrisks. In addition to classifying risks as (i) administrative risk,(ii) systems risk, and (iii) other operational risks (a. legalrisk, b. human risk, c. tangible asset risk, and d. reputationrisk), putting in place rules on an individual risk basis andpromoting the management of each risk by the appropriate
management department, the Bank has established the
Operational Risk Management Department to undertake themanagement of operational risks on a comprehensive basis.
The Bank also pushes forward measures aimed at establishingand developing a management structure that is capable ofharnessing the checks-and-balances function with respect
to each business division. Moreover, the Operational Risk
Management Committee deliberates on issues as and whenrequired.

Crisis Management/BCP Framework
The Bank has established a Business Continuity Plan (BCP)as part of its contingency planning to ensure operations
will continue in case of events such as a major earthquake,system disruption, or outbreak of pandemic influenza. The
Bank has compiled manuals that establish concrete codes of
behavior and countermeasures. In parallel, the Bank holds
systematic drills to improve the responsiveness and awarenessof all executives and employees. Additionally, the Bank
makes improvements to address issues it identifies and related
matters, as part of efforts to further increase the effectivenessof the BCP.
In response to the current coronavirus pandemic, the Bank
set up an Emergency Response Headquarters immediately,in order to maintain financial intermediary functions as
an essential service that is vital to people’s daily lives. We
have swiftly implemented response measures in line withconstantly changing conditions.

A Cyber Security Management Framework
We established the Cyber Security Management
Subcommittee as a CSIRT within the Bank, with the aimof ensuring a highly effective cyber security framework that
includes trying to prevent any impact from the occurrence ofcyber attacks, and minimizing the damage and achieving an
early-stage recovery if there is any. We are developing diverse
activities for normal times and for emergencies (if someincident occurs).
*CSIRT: Computer Security Incident Response TeamA general term for teams responsible for cyber security management within an organization. At the Bank, the Cyber Security
Management Subcommittee and its secretariat are CSIRTs.

21

Consolidated Balance Sheets
The Musashino Bank, Ltd. and Consolidated Subsidiaries As of March 31, 2022 and 2021

Millions of Yen
2022
2021

AssetsCash and due from banks�����������������������������������������������������������������������������
Monetary claims bought�������������������������������������������������������������������������������
Trading securities�����������������������������������������������������������������������������������������
Money held in trust��������������������������������������������������������������������������������������
Securities������������������������������������������������������������������������������������������������������
Loans and bills discounted���������������������������������������������������������������������������
Foreign exchanges����������������������������������������������������������������������������������������
Lease receivables and investments in leases���������������������������������������������������
Other assets��������������������������������������������������������������������������������������������������
Tangible fixed assets�������������������������������������������������������������������������������������
Buildings, net������������������������������������������������������������������������������������������
Land��������������������������������������������������������������������������������������������������������
Leased assets, net�������������������������������������������������������������������������������������
Construction in progress��������������������������������������������������������������������������
Other tangible fixed assets�����������������������������������������������������������������������
Intangible fixed assets�����������������������������������������������������������������������������������
Software���������������������������������������������������������������������������������������������������
Leased assets��������������������������������������������������������������������������������������������
Other intangible fixed assets��������������������������������������������������������������������
Retirement benefit asset�������������������������������������������������������������������������������
Deferred tax assets����������������������������������������������������������������������������������������
Customers’ liabilities for acceptances and guarantees������������������������������������
Allowance for loan losses������������������������������������������������������������������������������
Total assets������������������������������������������������������������������������������������

22¥  790,922
816
51
1,491
735,215
3,841,638
3,701
19,534
38,22656,163
27,61725,363
8
—
3,174
5,125
4,882
52
190
8,518
1,103
4,965
(21,191)¥5,486,283¥  739,970
613
62
1,494
683,379
3,789,948
3,157
21,24533,796
48,0698,535
25,363
13
11,995
2,161
4,533
4,253
78
201
8,986
1,126
5,315
(21,730)¥5,319,971

Thousands of
U.S. Dollars*2022$ 6,462,309
6,667
417
12,182
6,007,149
31,388,496
30,239159,605
312,329458,886
225,648
207,23165—
25,933
41,87439,889425
1,552
69,597
9,012
40,567(173,143)$44,826,236

Millions of Yen
2022
2021

Thousands of
U.S. Dollars*
2022

Liabilities
Deposits�������������������������������������������������������������������������������������������������������
Negotiable certificates of deposit������������������������������������������������������������������
Call money and bills sold�����������������������������������������������������������������������������Cash collateral received for securities lent�����������������������������������������������������
Borrowed money������������������������������������������������������������������������������������������
Foreign exchanges����������������������������������������������������������������������������������������
Borrowed money from trust account������������������������������������������������������������
Other liabilities��������������������������������������������������������������������������������������������
Provision for bonuses�����������������������������������������������������������������������������������
Provision for bonuses for directors (and other officers)���������������������������������
Retirement benefit liability���������������������������������������������������������������������������
Provision for retirement benefits for directors (and other officers)����������������
Provision for loss on interest repayment�������������������������������������������������������
Provision for reimbursement of deposits�������������������������������������������������������
Provision for point card certificates��������������������������������������������������������������
Provision for contingent loss������������������������������������������������������������������������
Provision for share-based compensation�������������������������������������������������������
Deferred tax liabilities����������������������������������������������������������������������������������
Deferred tax liabilities for land revaluation���������������������������������������������������
Acceptances and guarantees��������������������������������������������������������������������������
Total liabilities�������������������������������������������������������������������������������

¥4,757,810
23,29033,657
17,476358,392
218
5,735
24,766
1,138
37
2,964
27
44
196
109
307
80
284
4,227
4,965
5,235,729¥4,586,566
71,39035,427
20,158311,228223
3,283
25,504
1,152
12
3,255
32
42
320
96
318
78
2,159
4,227
5,315
5,070,791$38,874,173
190,293274,998
142,789
2,928,278
1,781
46,858202,353
9,298
302
24,218
221
360
1,601
891
2,508
654
2,320
34,53740,56742,779,059

Net assets
Share capital�������������������������������������������������������������������������������������������������
Capital surplus���������������������������������������������������������������������������������������������
Retained earnings�����������������������������������������������������������������������������������������
Treasury shares���������������������������������������������������������������������������������������������
Total shareholders’ equity���������������������������������������������������������������
Valuation difference on available-for-sale securities��������������������������������������
Deferred gains or losses on hedges����������������������������������������������������������������
Revaluation reserve for land�������������������������������������������������������������������������
Remeasurements of defined benefit plans�����������������������������������������������������
Total accumulated other comprehensive income����������������������������
Share acquisition rights��������������������������������������������������������������������������������
Non-controlling interests�����������������������������������������������������������������������������
Total net assets������������������������������������������������������������������������������
Total liabilities and net assets��������������������������������������������������������

45,74338,353
148,605(893)
231,809
10,476
124
8,286
(210)
18,67638
29
250,554¥5,486,283

45,74338,352
142,286(911)
225,471
15,099
(311)
8,286
559
23,63447
26
249,179¥5,319,971

373,748
313,367
1,214,192(7,296)
1,894,019
85,595
1,013
67,702(1,716)
152,594310
237
2,047,177$44,826,236* U.S. dollar figures have been translated at the rate ¥122.39 to U.S.$1, the prevailing market rate as of March 31, 2022.

23

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
The Musashino Bank, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 2022 and 2021

Consolidated Statements of Income

Millions of Yen
2022
2021

Ordinary income����������������������������������������������������������������������������������������
Interest income��������������������������������������������������������������������������������������������
Interest on loans and discounts����������������������������������������������������������������
Interest and dividends on securities����������������������������������������������������������
Interest on call loans and bills bought������������������������������������������������������
Interest on deposits with banks����������������������������������������������������������������
Other interest income������������������������������������������������������������������������������
Trust fees�����������������������������������������������������������������������������������������������������
Fees and commissions����������������������������������������������������������������������������������
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 sold��������������������������������������������������������
Interest expenses on cash collateral received for securities lent������������������
Interest on borrowings and rediscounts����������������������������������������������������
Other interest expenses����������������������������������������������������������������������������
Fees and commissions payments�������������������������������������������������������������������
Other ordinary expenses�������������������������������������������������������������������������������
General and administrative expenses������������������������������������������������������������
Other expenses���������������������������������������������������������������������������������������������
Provision of allowance for loan losses�������������������������������������������������������
Other�������������������������������������������������������������������������������������������������������
Ordinary profit�������������������������������������������������������������������������������������������
Extraordinary income���������������������������������������������������������������������������������
Gain on disposal of non-current assets�����������������������������������������������������
Extraordinary losses�����������������������������������������������������������������������������������
Loss on disposal of non-current assets������������������������������������������������������
Impairment losses������������������������������������������������������������������������������������
Profit before income taxes��������������������������������������������������������������������������
Income taxes—current���������������������������������������������������������������������������������
Income taxes—deferred��������������������������������������������������������������������������������
Total income taxes��������������������������������������������������������������������������
Profit�����������������������������������������������������������������������������������������������������������
Profit attributable to non-controlling interests�����������������������������������������
Profit attributable to owners of parent������������������������������������������������������

¥71,186
39,71433,232
5,591
0
0
889
68
15,172
2,561
13,670372
13,297
57,693
1,053
433
5
140
53
41
378
4,032
1,771
34,845
15,9902,564
13,426
13,492——70
25
45
13,421
4,147
269
4,417
9,004
2
¥ 9,001¥71,418
39,38032,478
6,615
(6)
0
293
55
14,8082,167
15,005579
14,426
58,611
1,274
538
12
188
100
39
395
4,016
1,741
35,473
16,105
4,283
11,821
12,80700
11
11—
12,796
4,148
622
4,771
8,025
3
¥ 8,022

Thousands of
U.S. Dollars*
2022$581,632
324,487
271,525
45,682
0
0
7,264
556
123,964
20,925
111,692
3,039
108,644471,387
8,604
3,538
41
1,144
433
335
3,088
32,944
14,470284,705
130,648
20,949109,699
110,238
—
—
572
204
368
109,658
33,883
2,198
36,09073,56816$ 73,544* U.S. dollar figures have been translated at the rate ¥122.39 to U.S.$1, the prevailing market rate as of March 31, 2022.

Consolidated Statements of Comprehensive Income

Profit�����������������������������������������������������������������������������������������������������������
Other comprehensive income�����������������������������������������������������������������������
Valuation difference on available-for-sale securities����������������������������������
Deferred gains or losses on hedges�����������������������������������������������������������
Remeasurements of defined benefit plans, net of tax��������������������������������
Comprehensive income������������������������������������������������������������������������������
Comprehensive income attributable to
Owners of parent�������������������������������������������������������������������������������������
Non-controlling interests�������������������������������������������������������������������������

Millions of Yen
2022
2021

¥ 9,004(4,957)(4,623)435(769)¥ 4,046¥ 8,025
8,381
4,555
1,142
2,682
¥16,406$ 73,568(40,502)(37,773)
3,554(6,283)$ 33,058¥ 4,0432¥16,4033$ 33,034
16* U.S. dollar figures have been translated at the rate ¥122.39 to U.S.$1, the prevailing market rate as of March 31, 2022.

24

Thousands of
U.S. Dollars*2022

Consolidated Statements of Changes in Equity
The Musashino Bank, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 2022 and 2021
Millions of Yen
Shareholders’ equity

Balance as of April 1, 2020................................................
Changes during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Net changes in items other than shareholders’ equity���Total changes during period�����������������������������������������
Balance as of March 31, 2021...........................................
Changes during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Net changes in items other than shareholders’ equity���Total changes during period�����������������������������������������
Balance as of March 31, 2022...........................................

Share
capitalCapitalsurplusRetainedearnings

TreasurysharesTotal shareholders’equity¥45,743¥38,352¥136,947¥(909)¥220,133(2,682)(2,682)

8,022

8,022

—

(2)

(2)

—

—

—

—

5,339

(2)

5,337

¥45,743

38,352

142,286(911)

225,471(2,682)(2,682)

9,001

9,001

1

(4)

(4)

22

24

—

1

6,318

18

6,338

¥45,743¥38,353¥148,605¥(893)¥231,809

Millions of Yen
Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Deferred
gains orlosses onhedgesBalance as of April 1, 2020................................................ ¥10,543
Changes during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Net changes in items other than shareholders’ equity���4,555
Total changes during period�����������������������������������������
4,555
Balance as of March 31, 2021........................................... 15,099
Changes of items during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Net changes of items other than shareholders’ equity��� (4,623)
Total changes during period����������������������������������������� (4,623)
Balance as of March 31, 2022........................................... ¥10,476¥(1,454)

Total accuRevaluation Remeasurements mulated otherSharereserve forof defined comprehensive acquisition
land
benefit plansincomerights¥8,286¥(2,122)¥15,253¥47

Noncontrollinginterests

Total net
assets¥23¥235,458(2,682)
8,022
(2)
—

1,142

—

2,682

8,381

—

3

8,384

1,142

—

2,682

8,381

—

3

13,721

(311)

8,286

559

23,63447

26

249,179(2,682)
9,001
(4)
24

435

—

(769)

(4,957)

(8)

2

435

—

(769)

(4,957)(8)

2(4,964)
1,374¥   124¥8,286¥  (210)¥18,676¥38¥29¥250,554

25

Thousands of U.S. Dollars*
Shareholders’ equity

Balance as of March 31, 2021...........................................
Changes during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Net changes in items other than shareholders’ equity���Total changes during period�����������������������������������������
Balance as of March 31, 2022...........................................

Share
capitalCapitalsurplusRetainedearnings

TreasurysharesTotal shareholders’equity$373,748$313,359$1,162,562$(7,443)$1,842,234(21,914)(21,914)73,544
8

73,544
(33)

(33)

180

196

—

8

51,622

147

51,785$373,748$313,367$1,214,192$(7,296)$1,894,019

Thousands of U.S. Dollars*
Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Deferred
gains orlosses onhedgesTotal accuRevaluation Remeasurements mulated otherSharereserve forof defined comprehensive acquisition
land
benefit plansincomerightsBalance as of March 31, 2021........................................... $123,368
Changes during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Net changes in items other than shareholders’ equity��� (37,773)
Total changes during period����������������������������������������� (37,773)
Balance as of March 31, 2022........................................... $ 85,595$(2,541)$67,702$ 4,567$193,104

Total net
assets$212$2,035,942(21,914)73,544
(33)
196

3,554

—

(6,283)(40,502)(65)

16(40,559)

3,554—(6,283)(40,502)(65)

16

11,226$ 1,013$67,702$(1,716)$152,594

$310

$237

$2,047,177* U.S. dollar figures have been translated at the rate ¥122.39 to U.S.$1, the prevailing market rate as of March 31, 2022.

26

$384

Noncontrollinginterests

Consolidated Statements of Cash Flows
The Musashino Bank, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 2022 and 2021

Millions of Yen
2022
2021

Cash flows from operating activities
Profit before income taxes����������������������������������������������������������������������������
Depreciation������������������������������������������������������������������������������������������������
Impairment losses�����������������������������������������������������������������������������������������
Share of loss (profit) of entities accounted for using equity method��������������
Increase (decrease) in allowance for loan losses���������������������������������������������
Increase (decrease) in provision for bonuses��������������������������������������������������
Increase (decrease) in provision for bonuses for directors (and other officers)���
Decrease (increase) in retirement benefit asset����������������������������������������������
Increase (decrease) in retirement benefit liability������������������������������������������
Increase (decrease) in provision for retirement benefits for directors (and other officers)���
Increase (decrease) in provision for loss on interest repayment����������������������
Increase (decrease) in provision for reimbursement of deposits���������������������
Increase (decrease) in provision for point card certificates�����������������������������
Increase (decrease) in provision for contingent loss���������������������������������������
Increase (decrease) in provision for share-based compensation����������������������
Increase (decrease) in allowance for demolition of non-current assets�����������
Interest income��������������������������������������������������������������������������������������������
Interest expenses�������������������������������������������������������������������������������������������
Loss (gain) related to securities���������������������������������������������������������������������
Loss (gain) on money held in trust���������������������������������������������������������������
Foreign exchange losses (gains)���������������������������������������������������������������������
Loss (gain) on disposal of non-current assets������������������������������������������������
Net decrease (increase) in trading securities��������������������������������������������������
Net decrease (increase) in loans and bills discounted������������������������������������
Net increase (decrease) in deposits����������������������������������������������������������������
Net increase (decrease) in negotiable certificates of deposit���������������������������
Net increase (decrease) in borrowed money (excluding subordinated borrowings)���
Net decrease (increase) in due from banks (excluding due from Bank of Japan)���
Net decrease (increase) in call loans��������������������������������������������������������������
Net increase (decrease) in call money�����������������������������������������������������������
Net increase (decrease) in cash collateral received for securities lent��������������
Net decrease (increase) in foreign exchanges—assets�������������������������������������
Net increase (decrease) in foreign exchanges—liabilities�������������������������������
Net increase (decrease) in borrowed money from trust account��������������������
Interest received�������������������������������������������������������������������������������������������
Interest paid�������������������������������������������������������������������������������������������������
Other, net����������������������������������������������������������������������������������������������������
Subtotal������������������������������������������������������������������������������������������
Income taxes refund�������������������������������������������������������������������������������������
Income taxes paid�����������������������������������������������������������������������������������������
Net cash provided by (used in) operating activities������������������������Cash flows from investing activities
Purchase of securities������������������������������������������������������������������������������������
Proceeds from sale of securities���������������������������������������������������������������������
Proceeds from redemption of securities��������������������������������������������������������
Increase in money held in trust��������������������������������������������������������������������
Purchase of tangible fixed assets��������������������������������������������������������������������
Proceeds from sale of property, plant and equipment�����������������������������������
Purchase of intangible assets�������������������������������������������������������������������������
Payments for asset retirement obligations�����������������������������������������������������
Net cash provided by (used in) investing activities������������������������Cash flows from financing activities
Dividends paid���������������������������������������������������������������������������������������������
Purchase of treasury shares���������������������������������������������������������������������������
Proceeds from sale of treasury shares������������������������������������������������������������
Net cash provided by (used in) financing activities������������������������
Net increase (decrease) in cash and cash equivalents��������������������������������Cash and cash equivalents at beginning of period������������������������������������Cash and cash equivalents at end of period�����������������������������������������������

Thousands of
U.S. Dollars*2022¥ 13,421
3,087
45
(5)
(538)
(13)
25
(552)
(208)
(4)
1
(124)
12
(10)
2
—
(39,714)
1,053
(89)
4
(3,377)25
10(51,689)
171,244(48,100)
47,164(95)(202)(1,769)(2,682)
(543)
(5)
2,452
40,087(1,124)
1,836
129,62123(5,314)
124,330¥ 12,796
2,711
—
(2)
1,898
18
0
(450)
(191)
(7)
(9)
(46)
7
61
17
(329)
(39,380)
1,274(1,694)2(2,029)10(13)(218,233)
376,517(62,440)
299,337
0
(102)
5,005
4,020
2,033
(134)
2,239
39,896(1,406)
3,557
424,934
2,160(1,392)425,702$   109,658
25,223368(41)(4,396)(106)
204(4,510)(1,699)(33)
8(1,013)
98
(82)
16
—
(324,487)
8,604
(727)
33
(27,592)204
82(422,330)
1,399,167(393,006)
385,358(776)(1,650)(14,454)(21,914)(4,437)(41)
20,034
327,535(9,184)15,001
1,059,082
188(43,419)
1,015,851(222,577)
84,26381,021(5)(11,570)—(1,932)(11)(70,810)(309,024)
81,587
178,329(5)(7,110)7(1,518)(1)(57,734)(1,818,588)
688,479
661,990(41)(94,534)—(15,786)(90)(578,560)(2,682)(4)
24(2,663)50,856739,274¥ 790,130(2,682)(2)—(2,685)365,282
373,991¥ 739,274(21,914)(33)
196(21,758)
415,524
6,040,314$ 6,455,838* U.S. dollar figures have been translated at the rate ¥122.39 to U.S.$1, the prevailing market rate as of March 31, 2022.

27

Directory
Organization Chart (as of July 1, 2022)
General Meeting of Shareholders

General Planning and Management Division
Strategic Planning Office
Alliance Management Office

Corporate Auditors
Board of Corporate Auditors
OutsideCorporate Auditors

Digital Transformation OfficeSustainability Promotion OfficeFinancial Affairs Office
Tokyo Office
Risk Management Division
Legal Affairs Office
Customer Service Promotion Office

Board of Directors

Personnel Division
Secretariat
Career Development Office* and Representative Directors

Executive Committee
Chairman

Senior Managing Directors*

President*
Managing Directors
Outside Directors

Health Support Office
Human Resources Activities Promotion OfficeBusiness Management Division
Business Planning Office
Assets in Custody Promotion Office
FinTech Promotion Office
Local Community Support Division
Community Value Creation Office
Solutions Marketing Division
Consulting Office
Credit DivisionCorporate Management Support OfficeInternational and Treasury Division
Global Business Advisory Office
Representative Office Registered in Singapore
General Affairs Division
Administration Division
Systems Management Office
Operation Services Division
Auditing Division28

Board of Directors, Corporate Auditors and Executive Officers (as of July 1, 2022)
ChairmanManaging Directors

Corporate Auditors

Managing Executive Officers

Executive Officers

Kikuo KatoKen Otomo
Tsutomu Kainuma

Yuichi Tanaka (standing)Susumu Kurosawa (standing)
Tomio Kezuka (outside)
Kenji Tamura (outside)
Hayato Yoshida (outside)

Masaharu Saito
Kazuhiro Wakabayashi
Takao Miyazaki

Manabu Okabe
Hiroshi Amada
Masahiro Asano
Yukio Kurosu
Hideaki Takeuchi
Toshitaka Matsuura
Noboru Iijima
Kiyoshi Takizawa
Kenichi Komoriya

President

Kazumasa Nagahori
Senior Managing Director

Toshiyuki Shirai

Directors

Ryuichi Mitsuoka (outside)
Yukimitsu Sanada (outside)
Ayako Kobayashi (outside)

Investor Information (as of March 31, 2022)
Number of Shares Held by Type of Shareholders

 uthorized: 80,000 thousand shares
A
Issued:33,805 thousand shares
Number of Shareholders 12,732
Common Stock

Financial instruments
business operators
1.30%

Major Shareholders
Name

Number of
Shares held assharesa percentage of(Thousands total outstandingof shares)
shares (%)

The Master Trust Bank of Japan, Ltd. (trust account)

4,049

12.07

Custody Bank of Japan, Ltd. (trust account)

2,586

7.71

Custody Bank of Japan, Ltd. (trust account 4)

1,256

3.74

925

2.75

The Chiba Bank, Ltd.
Meiji Yasuda Life Insurance Company

735

2.19

Musashino Bank Industries Employees’ Stockholding Association

729

2.17

MUFG Bank, Ltd.

727

2.16

SUMITOMO LIFE INSURANCE COMPANY

702

2.09

Maeda Glass Co., Ltd.

582

1.73

Nippon Life Insurance Company

507

1.51

Other corporations
23.49%

Individuals
and others
18.14%

Foreign companies
and others
13.41%

Financial institutions
43.66%

Notes: 1. Some treasury stock is contained in “Individuals and others.”
2. “Other corporations” includes shares under the name of Japan
Securities Depository Center, Inc.

* Shareholding percentages are rounded down to two decimal places.

2910-8, Sakuragi-cho 1-chome,
Omiya-ku, Saitama 330-0854
Phone: +81-48-641-6111

Brand Message

The Musashino Bank’s brand message is “More for You.”
The Bank personnel always ask themselves“What can I do for everyone?” and“What kind of service do I want to give everyone?”“Everyone” includes the Bank’s customers,
the members of local communities, our shareholders,and friends of the Bank, together with their families.
Accordingly, the Musashino Bank aspires to provide
everyone with better services and to contribute to
our local communities.