Tokyo TY Financial Group, Inc.
Listed Code: 7173
(URL: http://www.tokyo-tyfg.co.jp/)
Listed Stock Exchange: TSE1
May 15, 2015

Consolidated Financial Reportfor the Fiscal Year Ended March 31, 2015
<Under Japanese GAAP>
Representative: Akihiro Kakizaki, President
Responsible person for inquiries: Takeshi Miura, General Manager, Corporate Planning Division
Telephone: +81-3-5341-4301
Date of Ordinary General Meeting of Shareholders: June 26, 2015
Date of submission of annual security report: June 26, 2015
Date to start dividend payment: June 10, 2015
Preparation of supplementary material on financial results: Yes
Holding of financial results presentation meeting: Yes(for institutional investors and securities analysts)
Note: Figures have been rounded down to the nearest million yen.

1. Consolidated Operating Performance for the Fiscal Year Ended March 31, 2015
(From April 1, 2014 to March 31, 2015)(1) Results in consolidated operations(Percentages represent year-on-year changes.)
Ordinary income

Ordinary profit(¥ million)(%)(¥ million)(%)(¥ million)(%)

FY201465,043–

11,809–57,290–FY2013

–

–

–

–

–

–

Ordinary profit tototal assets (%)

Ordinary profit toordinary income(%)(Note) Comprehensive income:

FY2014: ¥70,500 million (– %)Net income
per share (¥)

Diluted net income
per share (¥)

Net income

FY2013: ¥ – million (– %)Net income to
net assets (%)

FY2014
2,638.39
2,561.38
28.3
0.2
18.1
FY2013–––––(Reference) Gain on equity-method investments: FY2014: ¥202 million
FY2013: ¥ – million(Note) As the Company was established on October 1, 2014, figures for the fiscal year ended March 31, 2014 and percentagechanges from the previous year are not provided.

(2) Consolidated financial position
Total assets(¥ million)

Total net assets(¥ million)

Net assets tototal assets ratio
(%)
4.0
–

Net assets
per share(¥)
6,959.92–

FY2014
4,943,828
202,580
FY2013––(Reference) Equity: FY2014: ¥202,334 million
FY2013: ¥ – million(Notes)1.
“Equity” consists of minority interests at the end of the period subtracted from total assets and “Net assets to total assets
ratio” is calculated by dividing equity by total assets at the end of the period.
Note that this “Net assets to total assets ratio” is not the net assets to total assets ratio required for the Capital Adequacy Ratio
Notification.
2.
As the Company was established on October 1, 2014, figures for the fiscal year ended March 31, 2014 are not provided.

(3) Consolidated cash flows

FY2014FY2013

Cash flow fromoperating activities(¥ million)

Cash flow frominvesting activities(¥ million)

156,827–(93,299)–

Cash and cash
equivalents
at year-end(¥ million)

Cash flow fromfinancing activities(¥ million)(11,992)–

286,385–(Note) As the Company was established on October 1, 2014, figures for the fiscal year ended March 31, 2014 are not provided.

2. Dividends
Annual dividend per share (¥)

Payout ratio

AnnualTotal dividends(full-year)(¥ million)(%)

Dividends ratio
to shareholders’equity (%)

–

–

–

–

–

–

30.00

30.00

872

1.1

0.4

–

30.00

60.00

First

SecondThird

Fiscalquarterquarterquarter

year-end

FY2013–––

FY2014––FY2015 (Forecast)

–

30.00

(Record date)

20.5(Note) As the Company was established on October 1, 2014, the year-end dividend for the fiscal year ended March 31, 2015 was thefirst dividend paid by the Company.

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2016
(From April 1, 2015 to March 31, 2016)(Percentages represent increases or decreases from the previous year for the full-year results and from the same quarter in the previous year for quarterly results.)

Profit (loss) attributable toowners of parent

Ordinary profit(¥ million)(%)(¥ million)(%)

Net income per share(¥)

Second-quarter period
5,400
–
3,500
–
120.39(cumulative)
12,900–8,500–
292.38Full-year(Note) As the Company was established on October 1, 2014, percentage changes from the same cumulative period and full-year
period of the previous year are not provided.

* Notes(1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries
resulting in change in scope of consolidation): None
New subsidiaries: ___ (name of company(ies)
Excluded subsidiaries: ___ (name of company(ies)))

(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period
financial statements after error corrections
a.
b.
c.
d.

Changes in accounting policies due to revisions to accounting standards: Yes
Changes in accounting policies due to other reasons: Yes
Changes in accounting estimates: None
Restatement of prior period financial statements after error corrections: None

(Note) Details are stated under “(6) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements ofPrior Period Financial Statements After Error Corrections in 5. Consolidated Financial Statements” on page 14 of the Attached
Materials.

(3) Number of shares issued (common stock)
a.

b.

c.

Total number of shares issued at the end of the period (including treasury stock)
FY201429,227,826 shares

FY2013– shares

Number of treasury stock at the end of the period
FY2014

156,450 shares

FY2013– sharesAverage number of shares during the period
FY2014

21,714,303 shares

FY2013– shares(Notes)1.
As the Company was established on October 1, 2014, figures for the fiscal year ended March 31, 2014 are not provided.
2.
As the Company was established on October 1, 2014 through a joint share transfer, the average number of common shares
during the fiscal year ended March 31, 2015 was calculated based on the average number of shares of the Tokyo Tomin Bank,
Limited multiplied by its share transfer ratio for the period from April 1, 2014 to September 30, 2014 prior to theestablishment of the Company and the average number of common shares of the Company for the period from October 1,
2014 to March 31, 2015.

(Reference) Non-consolidated Financial Statements
1. Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2015

(From October 1, 2014 to March 31, 2015)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)

FY2014FY2013Operating income

Operating profit(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)

(%)

2,383
–

–
–

2,034
–

–
–

2,024
–

–
–

1,957
–

–
–

Net Income per share

FY2014

Ordinary profit

Net income

Diluted net income
per share

(¥)

(¥)

66.99

65.19

–
FY2013–(Note) As the Company was established on October 1, 2014, figures for the fiscal year ended March 31, 2014 and percentagechanges from the previous year are not provided.

(2) Non-consolidated financial position

FY2014

Total assets(¥ million)

Total net assets(¥ million)

Net assets to total assets
ratio
(%)

Net assets
per share(¥)

141,793

136,68996.4

4,701.85––––
FY2013(Reference) Equity:
FY2014: ¥136,689 million
FY2013: ¥ – million(Notes)1.
“Net assets to total assets ratio” is calculated by dividing total net assets at the end of the period by total assets at the end of
the period.
Note that this “Net assets to total assets ratio” is not the net assets to total assets ratio required for the Capital Adequacy Ratio
Notification.
2.
As the Company was established on October 1, 2014, figures for the fiscal year ended March 31, 2014 are not provided.

* Indication regarding execution of audit proceduresThis financial report is exempt from the audit procedures pursuant to the Financial Instruments and Exchange Law. At the time of
disclosure of this financial report, the audit procedures to the Consolidated Interim Financial Statements and Non-consolidated
Interim Financial Statements pursuant to the Financial Instruments and Exchange Law are incomplete.
* Disclaimer and special note for referring to the forecast of operating performance
Forward-looking statements concerning financial forecasts contained in these materials are based on information available when theforecasts were made and certain assumptions judged to be reasonable. However, the Company makes no guarantee that these
forecasts will be achieved. Actual results may differ significantly from the forecasts due to a variety of factors.

Attached Materials
Index
1. Business Results(1)

Analysis of Operating Results and Financial Position ·····································

2(2)

Analysis of Financial Position·································································

3(3)

Basic Policy for Profit Distribution and Dividends for This Term and the Next Term ··3

2. Overview of Tokyo TY Financial Group ····························································

4

3. Management Policies(1)

Fundamental Management Policy ····························································

5(2)

Management Indicators to be Targeted·······················································

5(3)

Medium- and Long-term Business Strategies ···············································

5(4)

Outstanding Issues ··············································································

5

4. Basic Views on Selection of Accounting Standards················································

6

5. Consolidated Financial Statements(1)

Consolidated Balance Sheets ··································································(2)

Consolidated Statements of Income and

7-8

Consolidated Statements of Comprehensive Income ······································

9 - 10(3)

Consolidated Statements of Changes in Net Assets ········································

11

(4)

Consolidated Statements of Cash Flows ·····················································

12 - 13(5)

Notes on Premise of Going Concern ·························································

14

(6)

Changes in Accounting Policies, Changes in Accounting Estimates,
and Restatements of Prior Period Financial Statements After Error Corrections ······

14

(7)

Accounting Standards Not Yet Applied ······················································

15

(8)

Notes to Consolidated Financial Statements ················································

15

6. Non-consolidated Financial Statements(1)

Non-consolidated Balance Sheets ····························································

19

(2)

Non-consolidated Statements of Income·····················································

20

(3)

Non-consolidated Statements of Changes in Net Assets···································

21

(4)

Notes on Premise of Going Concern ·························································

21

7. (Reference) Overview of Major Consolidated Subsidiary Operating Performance(1)

Non-consolidated Financial Statements (The Tokyo Tomin Bank, Limited) ···········

22

(2)

Non-consolidated Financial Statements (The Yachiyo Bank, Limited) ·················

28

8. Changes to Directors····················································································

34(Appendix) Financial Results for the fiscal year ended March 31, 2015 Supplementary Information

1

1. Business Results(1) Analysis of Operating Results and Financial Position(Operating results)
The Company was established on October 1, 2014 through a joint share transfer by The Tokyo Tomin
Bank, Limited and The Yachiyo Bank, Limited. Through this business integration, the Group aims toshare advanced consulting capabilities, develop products and services that support the needs of customers,
further strengthen partnerships with local governments, and promote unification of redundant operations
in order to be a financial group for small and medium-sized enterprise customers and individual
customers in the Tokyo metropolitan area that will contribute to the development of local communities
through comprehensive financial services and become the urban regional bank group most loved bycustomers in the Tokyo metropolitan area.
Looking back at the Japanese economy during the consolidated fiscal year ended March 31, 2015, thepace of economic recovery continued to be lacking as positive factors causing a boost in the economy
such as economic policy and financial policy aimed at an escape from deflation and economic
revitalization were intermixed with the downward pressure caused on the economy by the increase in
consumption tax rate. However, overall the economy was firm due to factors including a graduallessening of the effect of the rebound from the last-minute rise in demand before the increase in the
consumption tax rate that had become prolonged, improvements in corporate earnings with a focus on
major companies, and the asset effects from increases in stock prices as the fiscal year progressed, despitesome restraint towards capital investment and personal consumption.
In the Tokyo metropolitan area where the Group has its principal operational base, while there was astandstill in the improvement in SME (small and medium-sized enterprises) business confidence due torising supply prices caused by the increase in consumption tax coupled with yen depreciation, a gentle
recovery is expected going forward as a result of factors including the effect of the drop in crude oil
prices and the decision made to host the 2020 Tokyo Olympics and Paralympics.
With the above as a backdrop, for the consolidated operating results for the fiscal year ended March 31,
2015, ordinary income was ¥65 billion as a result of efforts to increase interest income including interest
on loans and discounts and fees and commissions. On the other hand, ordinary expenses were ¥53.2
billion as a result of low credit-related costs and efforts to reduce expenses with a focus on property
expenses. As a result of these factors, ordinary profits were ¥11.8 billion. Furthermore, net income was¥5.72 billion as a result of extraordinary income recorded from a gain on bargain purchase of ¥5.04
billion from business integration.
As the Company was established on October 1, 2014, a breakdown of income for the current
consolidated fiscal year is as follows.
· Consolidated income for The Tokyo Tomin Bank, Limited from April 2014 to March 2015
· Consolidated income for The Yachiyo Bank, Limited from October 2014 to March 2015 (the income
for April to September, 2014 contained in retained earnings)· The Company’s Non-consolidated income from October 2014 to March 2015
· Other adjustments from consolidated closing (gain on bargain purchase, etc.)(Outlook for next fiscal year)
The forecast of the consolidated operating performance for the fiscal year ending March 31, 2016 is asfollows.
Ordinary income of ¥12.9 billion
Profit attributable to owners of parent of ¥8.5 billion
The forecast described above represents the judgment of management based on information currently
available, and may include uncertainties. Actual results may differ from the above due to changes incircumstances.

2(2) Analysis of Financial Position(Status of assets, liabilities, and net assets)
With respect to the consolidated financial position for the fiscal year ended March 31, 2015, total
assets amounted to ¥4,943.8 billion, total liabilities amounted to ¥4,741.2 billion, and net assets amounted
to ¥202.5 billion. With respect to major account balances, deposits amounted to ¥4,491.3 billion, loans
and bills discounted amounted to ¥3,294.8 billion, and securities amounted to ¥1,236.8 billion.
(Status of cash flows)
During the current consolidated fiscal year, cash flows from operating activities increased by ¥156.8
billion mainly as a result of proceeds from a net increase in deposits and an increase in payables under
securities lending transactions, and despite an increase in expenditures from a net increase in loans andbills discounted. Meanwhile, cash flows from investing activities decreased by ¥93.2 billion mainly as aresult of an increase in expenditures for purchases of securities. Cash flows from financing activities
decreased by ¥11.9 billion mainly as a result of expenditures for the decrease in subordinated borrowings
and the redemption of subordinated bonds. As a result of the above and an increase of ¥111.8 billion in
cash and cash equivalents due to a share transfer, the balance of cash and cash equivalents at the end of
the current consolidated fiscal year was ¥286.3 billion.
(3) Basic Policy for Profit Distribution and Dividends for This Term and the Next Term
The Company’s basic policy is to work to maintain a sound financial position through sufficient andrelevant internal reserves in consideration of its public nature as a bank holding company while
prioritizing returns to shareholders as an important management issue as it provides ongoing and stabledividends.
In consideration of this policy, the Company will pay out dividends of ¥30 per share for the fiscal year
ended March 31, 2015.
Note that an annual dividend of ¥60 per share (¥30 interim dividend, ¥30 year-end dividend) isscheduled for the dividend for the fiscal year ending March 31, 2016 based on this policy.
2. Overview of the Tokyo TY Financial GroupThe Group (the Company and the Company’s affiliates) is composed of the Company, 12 consolidated
subsidiaries, and 1 affiliate (equity-method affiliate), and is engaged in business related to financial
services with a focus on the banking services.
The Group’s only reporting segment is banking services, and the roles related to the Group’sbusinesses are as follows.
[Banking services]
The Tokyo Tomin Bank, Limited and The Yachiyo Bank, Limited provide services that include
deposit services, loan services, domestic exchange services, foreign exchange services, trading accountsecurities services, and securities investment services, which are positioned as the core businesses of theGroup through head offices, branches, etc. located in a business area centered around the Tokyo
Metropolis and the northeast of Kanagawa Prefecture.
Furthermore, 3 consolidated subsidiaries are engaged in work including banking clerical work.
[Others]
The other 7 consolidated subsidiaries and 1 affiliate (equity-method affiliate) are engaged in services
ancillary to banking services such as computer-related services, information provision services, and credit
card services, and work together with the Bank to support the financial needs of customers.
The diagram on the following page illustrates the business portfolio, as described above.

3

(As of March 31, 2015)
Bankingbusiness

Head office, 71 branches, 5 offices
Tomin Credit Guarantee Co., Ltd.
(Guarantee operations including housing loans)(Domestic consolidated subsidiaries)
Tomingin Office Support Center Co., Ltd.*2(Administrative clerical work including exchange of bills
and checks, processing foreign exchange and taxes, etc.,
cash arrangement services, printing, and binding)(Domestic consolidated subsidiaries)

The
Tokyo
Tomin
Bank,
LimitedTomin Computer System Co., Ltd.
(Outsourcing of information processing work for computer
calculations, outsourcing of operations and management ofcomputer rooms)(Domestic consolidated subsidiaries)(Consolidated
subsidiary)

Tomin Management Research Institute Co., Ltd.
(Consultation services concerning management, household
budgets, real estate, etc. for local companies and local
residents, acquisition, holding, and trading of securities)(Domestic consolidated subsidiaries)
Other

Tomin Card Co., Ltd.
(Credit card services)(Domestic consolidated subsidiaries)

Tokyo TY
Financial
Group, Inc.

Tomin Business Consulting Shanghai Co., Ltd.

(Corporate management consulting services,trade information consulting services, investment consulting
services)(Overseas consolidated subsidiary)
Tomin Leasing Co., Ltd. *1(General leasing business)(Domestic equity-method affiliate

Bankingbusiness

Head office, 78 branches, 5 offices
Yachiyo Credit Guarantee Co.,Ltd.
(Guarantee operations including housing loans)(Domestic consolidated subsidiaries)

The
YachiyoBank,
Limited(Consolidated
subsidiary)

Yachiyo Service Co.,Ltd.
(Building cleaning, maintenance, and management work;
procurement and management work for advertisingequipment, etc.)(Domestic consolidated subsidiaries)
Other

Yachiyo Business Service Co.,Ltd.
(Email, bill collection, concentrated administrative services)(Domestic consolidated subsidiaries)
Yachiyo Bank Credit Service Co.,Ltd.
(Credit card services)(Domestic consolidated subsidiaries)

Notes:
1.
The name of Tomin Lease Co., Ltd. was changed to Tokyo TY Lease Co., Ltd. on April 1, 2015.
2.
The Company resolved to dissolve Tomingin Office Support Center Co., Ltd. at the Board of Directors meeting held on April
30, 2015.

4

3. Management Policies(1) Fundamental Management Policy
The Group was formed with the establishment of the Company as a joint holding company of The Tokyo
Tomin Bank, Limited and The Yachiyo Bank, Limited on October 1, 2014. Based on the management policy“to be a financial group for small and medium-sized enterprise customers and individual customers in theTokyo metropolitan area that will contribute to the development of local communities throughcomprehensive financial services” and in accordance with the following basic policies, we aim to become
the urban regional bank group most loved by customers in the Tokyo metropolitan area.
- As one of the largest regional financial institutions headquartered in Tokyo, we will establish a new
business model and increase our competitive advantage in the urban-style regional banking market.
- As a financial institution serving small and medium-sized enterprises and individuals, we will
increase our level of community contribution by demonstrating our high-level financial service
functions such as consulting and our function of providing stable financing.
- Against a backdrop of high profitability and soundness, we will work to lift the motivation of ourbank employees, and take up the challenge of our growth strategies with a sense of unified purpose.
(2) Management Indicators to be Targeted
Deposit balance (outstanding)
Loan balance (outstanding)Core business income
Net income

FY2016¥4,550 billion¥3,350 billion¥16.5 billion¥10.0 billion

FY2020¥4,700 billion¥3,500 billion¥20.0 billion¥12.5 billion(3) Medium- and Long-term Business Strategies
With the Group’s inauguration, in October 2014 we started a 2.5-year medium-term business plan
lasting until FY2016 as the first stage of the Tokyo TY Plan 2020 business plan for FY 2020. The
initiatives of this medium-term business plan will include providing advanced consulting capabilities
through the promotion of the Club TY financial platform service, sharing the strengths and sales
know-how of both banks, and improving the efficiency of the headquarters function. Furthermore, overthe medium to long term the Group will do its utmost to work together to exploit synergies in order tostrengthen services as a financial partner, expand its sales base and regional finance function, promote
improved management efficiency, and strengthen profitability.
(4) Outstanding Issues
Looking towards the future, we believe that the further advance of population aging will beaccompanied by an increase in needs for inheritance services and business succession services for SMEs
in the Tokyo metropolitan area, and that population aging and population decreases in regional areas willfurther trigger the movement of companies and people from regional areas to the Tokyo metropolitan area.
Furthermore, the convening of the 2020 Tokyo Olympics and Paralympics is expected to create tailwinds
for a wide range of industries, as large-scale re-development can be expected for accommodation
facilities and transportation infrastructure including roads and railways, which will be coupled with anincrease in foreign visitors to Japan and enlivened consumption activities.
While there will be an increase in business opportunities such as these, competition can be expected tointensify in the Tokyo metropolitan area including among existing financial institution as the movement
across boundaries by regional banks into the Tokyo metropolitan area becomes more common.
In order to overcome this competition and to ensure that these business opportunities can be translated
into solid results, the Group recognizes the prompt sharing of the mutual strengths and know-how of bothbanks in order to maximize synergies as a pressing issue. Currently, various measures are being studied
and implemented in a variety of fields in order to maximize the synergies between both banks. In order toalso leverage the advantages gained through implementing business integration in the Tokyo metropolitan
area in advance of other banking groups, the Group aims to promptly address various issues and achieve
results through the various measures being implemented in order to maximize corporate value.

5

Furthermore, in order to actualize the management policy, the Group will work towards sustainablegrowth and medium-to-long-term development through means such as implementing the newly developed
Corporate Governance Code.
4. Basic Views on Selection of Accounting Standards
Over the near term, the Group will prepare its consolidated financial statements based on J-GAAP
because the Group’s business activities are focused on Japan and to ensure that consolidated financial
statements can be compared across time.
In terms of the application of International Financial Reporting Standards (IFRS), an appropriate
response will be made in consideration of circumstances in Japan and overseas.

6

5. Consolidated Financial Statements(1) Consolidated Balance Sheets(¥ million)
As of March 31, 2015
AssetsCash and due from banks

298,834

Call loans and bills purchased

28,938Other debt purchased

3,012

Trading account securities

607

Securities

1,236,834

Loans and bills discounted

3,294,802

Foreign exchange

7,731

Other assets

21,018

Tangible fixed assets

53,613

Buildings

13,478Land

34,625

Lease assets

973

Construction in progress

2,223

Other tangible fixed assets

2,313

Intangible fixed assets

3,295

Software

2,604

Lease assets

183

Other intangible fixed assets

507

Deferred assets

74

Net defined benefit assets

10,777

Deferred tax assets

6,570

Customers’ liabilities for acceptances and guarantees

6,630

Reserve for possible loan losses(28,913)

Total assets

4,943,828

Liabilities
Deposits

4,491,306

Negotiable certificates of deposit

27,038

Payables under securities lending transactions

140,876

Borrowed money

7,409

Foreign exchange

139

Bonds

25,600Bonds with subscription rights to shares

5,000

Other liabilities

30,012

Reserve for employee bonuses

2,074

Net defined benefit liabilities

3,326

Reserve for directors’ retirement benefits

137

Reserve for point card certificates

51

Reserve for loss on interest repayments

14

Reserve for loss on dormant deposit repayments

844

Reserve for contingent loss

740

Deferred tax liabilities

30

Deferred tax liabilities for land revaluation

15

Acceptances and guarantees

6,630

Total liabilities

4,741,2487

(¥ million)
As of March 31, 2015
Net Assets
Common stock

20,000Capital surplus

99,607Retained earnings

73,245

Treasury stock(544)

Total shareholders’ equity

192,308

Net unrealized gain on available-for-sale securities

9,784

Deferred gains or losses on hedges

2

Revaluation reserve for land

(210)

Foreign currency translation adjustment

17

Remeasurements of defined benefit plans

432

Total of other accumulated comprehensive income

10,026

Minority interests

245

Total net assets

202,580

Total liabilities and net assets

4,943,8288

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(¥ million)
Year ended
March 31, 2015
Ordinary income

65,043

Interest income

45,003

Interest on loans and bills discounted

37,879Interest and dividends on securities

6,409Interest on call loans and bills purchased

145
9Interest on receivables under securities borrowing transactions

Interest on deposits with banks

163

Other interest income

395

Fees and commissions

13,410

Other operating income

3,946

Other ordinary income

2,682

Gain on recovery of write-off claims

210

Others2,472

Ordinary expenses

53,234

Interest expenses

2,975Interest on deposits

1,812Interest on negotiable certificates of deposit

38

Interest on call money and bills sold0

Interest on payables under securities lending transactions

117

Interest on borrowed money

212

Interest on corporate bonds

698

Interest on bonds with subscription rights to shares

53

Other interest expenses

42

Fees and commissions

2,895

Other operating expenses

209

General and administrative expenses

43,749Other ordinary expenses

3,403

Written-off of loans

774

Provision of allowance for doubtful accounts

721

Other ordinary expenses

1,907

Ordinary profit

11,809Extraordinary income

50,476

Gain on disposal of non-current assets

0Gain on bargain purchase

50,476Extraordinary losses

80

Loss on disposal of fixed assets

76

Loss on step acquisitions

3

Income before income taxes and minority interests

62,205

Income tax – current

2,054

Income tax – deferred

2,815

Total income taxes

4,870

Income before minority interests

57,335

Minority interests in net income

44

Net income

57,2909

Consolidated Statements of Comprehensive Income(¥ million)
Year ended
March 31, 2015
Income before minority interests

57,335

Other comprehensive income

13,164

Net unrealized gain on available-for-sale securities

7,966

Deferred gains or losses on hedges

2

Excess of land revaluation1

Foreign currency translation adjustments

6

Remeasurements of defined benefit plans
Share of other comprehensive income of associates
accounted for using equity method
Total comprehensive income

5,087

70,500Comprehensive income attributable to owners of parent

70,465Comprehensive income attributable to minority interests

34

100

10

(3) Consolidated Statements of Changes in Net Assets(Year ended March 31, 2015)(¥ million)
Shareholders’ equity

Balance at beginning of
the year
Cumulative effects ofchanges in accounting
policies
Restated balance

Retainedearnings

Common stock

Capital surplus

48,12018,379Treasury stock

Total
shareholders’equity(1,636)

83,894

19,031
260

260

48,12018,37919,291(1,636)

84,155(28,120)

81,08952,969153

153

Changes during thereporting period
Share transfer
Acquisition of
additional shares ofsubsidiaries uponshare transfer
Surplus dividend(1,758)Net income

57,290(1,758)57,290Acquisition oftreasury stock
Disposition oftreasury stock
Retirement oftreasury shares
Transfer to capitalsurplus from retained
earnings
Change in interest in
subsidiaries
Changes of items
other than those inequity capital during
the reporting period(net amount)
Total of changes during
the reporting period(28,120)

81,227

53,953

1,092

108,152

Balance at end of period

20,00099,60773,245(544)

192,308

0

(548)

(548)

68

62

1,571

-

(6)

(1,571)
1,571(1,571)

-

(15)

(15)

Accumulated other comprehensive incomeNet
unrealized
gain onavailable-forsale securities
Balance at beginning of
the year
Cumulative effects ofchanges in accounting
policies
Restated balance

1,707

Deferred
gains orlosses onhedges-

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Total otherRemeasurements
accumulatedof definedcomprehensive
benefit plansincome(211)

10(4,655)(3,148)Stockpurchase
warrants

Minority
interests

79

248

Total net
assets81,073
260

1,707

-

(211)

10

(4,655)(3,148)79

248

81,334

Changes during thereporting period
Share transfer

52,969Acquisition of
additional shares ofsubsidiaries uponshare transfer

153

Surplus dividend(1,758)Net income

57,290Acquisition oftreasury stock
Disposition oftreasury stock
Retirement oftreasury shares
Transfer to capitalsurplus from retained
earnings
Change in interest in
subsidiaries
Changes of items
other than those inequity capital during
the reporting period(net amount)
Total of changes during
the reporting period
Balance at end of
period

(548)
62
-

(15)
8,076

2

1

6

5,087

13,174(79)(2)

13,092

8,076

2

1

6

5,087

13,174(79)(2)

121,245

9,784

2

(210)

17

432

10,026-

245

202,58011

(4) Consolidated Statements of Cash Flows(¥ million)
Year ended
March 31, 2015
Cash flows from operating activities
Income before income taxes and minority interests

62,205

Depreciation

2,508

Retirement benefit expenses

1,263

Gain on bargain purchase(50,476)

Loss (gain) on step acquisitions

3

Equity in (earnings) losses of affiliates(202)

Increase (decrease) in reserve for possible loan losses(4,104)

Increase (decrease) in reserve for employee bonuses(50)

Decrease (increase) in net defined benefit assets(8,207)

Increase (decrease) in net defined benefit liability(1,768)

Increase (decrease) in reserve for directors’ retirement benefits

9

Increase (decrease) in reserve for point card certificates4

Increase (decrease) in reserve for loss on interest repayments

3

Increase (decrease) in reserve for loss on dormant deposit repayments
Increase (decrease) in reserve for contingent loss

113
(68)

Interest income(45,003)

Interest expenses

2,975

Net gain (loss) on securities(2,389)Foreign exchange losses (gains)(9,010)Net loss (gain) on sales of fixed assets

76

Net increase (decrease) in trading securities(213)

Net (decrease) increase in loans and bills discounted(18,788)

Net increase (decrease) in deposits

7,587

Net increase (decrease) in negotiable certificates of deposit
Net increase (decrease) in borrowed money(excluding subordinated loans)
Net decrease (increase) in due from banks(excluding due from the Bank of Japan)
Net (decrease) increase in call loans and bills purchased and others(5,127)27,026

Net increase (decrease) in payables under securities lending transactions

140,876

(119)
7,878

Increase (decrease) in money held in trust

20

Net increase (decrease) in foreign exchange (assets)

496

Net increase (decrease) in foreign exchange (liabilities)

17

Interest received

45,518Interest paid

(3,130)

Other

8,112

Subtotal

158,035

Income taxes paid

(1,208)Net cash provided by (used in) operating activities

156,82712(¥ million)
Year ended
March 31, 2015
Cash flows from investing activities
Purchases of securities(588,928)

Proceeds from sale of securities

500,403

Proceeds from maturities of securities

13,998Purchase of tangible fixed assets(18,332)

Retirement of tangible fixed assets(46)

Proceeds from sales of property, plant and equipment

0

Purchase of intangible fixed assets(393)

Net cash provided by (used in) investing activities(93,299)

Cash flows from financing activities
Decrease in subordinated borrowings(5,000)

Redemption of subordinated bonds(5,000)Cash dividends paid

(1,755)

Cash dividends paid to minority shareholders(0)

Purchase of treasury stock(55)

Proceeds from sale of treasury stock

37

Repayments of lease obligations(216)

Net cash provided by (used in) financing activities(11,992)

Effect of exchange rate changes on cash and cash equivalents

11

Net change in cash and cash equivalents (used in)

51,546

Cash and cash equivalents at beginning of year

122,982

Increase in cash and cash equivalents due to share transfer

111,855

Cash and cash equivalents at end of year

286,38513

(5) Notes on Premise of Going Concern
Not applicable.
(6) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements of Prior
Period Financial Statements After Error Corrections
The Company is the sole parent company established through the business integration and joint stocktransfer of The Tokyo Tomin Bank, Limited and The Yachiyo Bank, Limited on October 1, 2014, and theaccounting policies, accounting estimates, etc. applied are those that were applied in the past by both The
Tokyo Tomin Bank, Limited and The Yachiyo Bank, Limited in the preparation of the consolidated
financial statements.
(Application of the Accounting Standard for Retirement Benefits)
Concerning the Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, May 17, 2012;
hereafter, “the Accounting Standard for Retirement Benefits”) and the Guidance on Accounting Standard
for Retirement Benefits (ASBJ Guidance No. 25, March 26, 2015; hereafter, “the Guidance on
Accounting Standard for Retirement Benefits”), the stipulations of Article 35 of the Accounting Standard
for Retirement Benefits and Article 67 of the Guidance on Accounting Standard for Retirement Benefits
have been adopted from the current consolidated fiscal year, and accordingly the method for calculating
retirement benefit obligations and service costs will be revised and the period allocation methodology forthe estimated retirement benefit amount will be changed from a straight-line basis to a benefit calculationbasis. In addition, the discount rate determination method will be revised from a method in which it isdetermined based on a single-year bond yield corresponding to the average remaining years of service of
employees to a method in which it is determined based on multiple bond yields set for each expected
payment period for retirement benefits.
In accordance with transitional treatment as stipulated in Article 37 of the Accounting Standard for
Retirement Benefits for the application of accounting standards for retirement benefits, the impact
resulting from the change in the method for calculating retirement benefit obligations and service costs
has been recorded under retained earnings at the beginning of the current consolidated fiscal year.
As a result, net defined benefit assets have increased by ¥405 million and retained earnings haveincreased by ¥260 million at the beginning of the current consolidated fiscal year. Note that ordinary
profit and income before income taxes and minority interests for the current consolidated fiscal year
increased by ¥374 million, respectively.
Note that the effects on per share information are described in the per share information section.
(Application of the Accounting Standard for Business Combinations, etc.)
With the application of the Accounting Standard for Business Combinations (ASBJ Statement No. 21,
September 13, 2013; hereafter, the “Accounting Standard for Business Combinations”), the AccountingStandards for Consolidated Financial Statements (ASBJ Statement No. 22, September 13, 2013; hereafter,
the “Accounting Standards for Consolidated Financial Statements”), the Accounting Standard forBusiness Divestitures (ASBJ Statement No. 7, September 13, 2013; hereafter, the “Accounting Standard
for Business Divestitures”), etc. from the beginning of the consolidated fiscal year starting on April 1,
2014, these accounting standard, etc. (excluding the stipulations of Article 39 of the Accounting Standards
for Consolidated Financial Statements) shall be applied from the current consolidated fiscal year, andaccordingly the balance of the Company’s ownership of a subsidiary if control is maintained shall berecorded as a capital surplus and the treatment of acquisition-related costs shall be changed to recording
as costs during the consolidated fiscal year incurred.
In addition, for business combinations implemented from the beginning of the current consolidated
fiscal year, the allocation of expenditures to acquisition cost will be revised through the confirmation of aprovisional accounting treatment to be reflected in the consolidated financial statements for the
consolidated fiscal year the business consolidation date falls in.
The application of the Accounting Standard for Business Combinations, etc. will apply from the
beginning of the current consolidated fiscal year into the future in accordance with the transitional
treatment stipulated in the Accounting Standard for Business Combinations 58-2 (4), the AccountingStandards for Consolidated Financial Statements 44-5 (4), and the Accounting Standard for Business
14

Divestitures 57-4 (4).
Note that these changes will not have a material impact on the income or capital surplus of the current
consolidated fiscal year.
(7) Accounting Standards Not Yet Applied
Accounting Standard for Business Combinations (September 13, 2013)(1) Overview
The Accounting Standard for Business Combinations was revised with a focus on (i) the treatment ofchanges to a parent company’s ownership of a subsidiary if control is maintained in the acquisition of
additional shares of subsidiaries, (ii) the treatment of acquisition-related costs, (iii) provisional accounting
treatment, and (iv) the disclosure of net income and changes from minority interests to non-controllinginterests.
(2) Scheduled application dateAmong the revised accounting standards, (i) to (iii) have been applied early from the beginning of theconsolidated fiscal year starting on April 1, 2014, and (iv) is scheduled to be applied from the beginningof the year starting on April 1, 2015.
(3) The impact of the application of these accounting standards
They constitute changes in account names, so there will be no impact on the consolidated financial
statements.
(8) Notes to Consolidated Financial Statements(Business combinations, etc.)
The Company was established through the joint stock transfer of The Tokyo Tomin Bank, Limited(hereafter, “Tokyo Tomin Bank”) and The Yachiyo Bank, Limited (hereafter, “Yachiyo Bank”) on October
1, 2014. The joint stock transfer shall be treated as a purchase as stipulated in the Accounting Standard forBusiness Combinations, with Tokyo Tomin Bank as the acquiring company and Yachiyo Bank as theacquired company.
1. Overview of the business combination(1) Name and description of business of the acquired company
Yachiyo Bank Banking business(2) Main reasons for the business combination
In order to utilize the regional brands that both banks have fostered up until now and achieve
prompt integration synergies from the perspective of maximizing corporate value, both banks selected
the method of establishing a joint holding company through stock transfer. With this new financialgroup, a business integration has been achieved that will contribute to the local community throughthe provision of an advanced consulting function, the development of products and services to support
the needs of customers, further partnerships with local governments, the promotion of unified
operations of redundant operations, and improved corporate value through the improvement ofcustomer satisfaction, competitiveness, and management efficiency.
(3) Date of the business combination
October 1, 2014
(4) Legal form of the business combination
Establishment of a joint holding company through a stock transfer(5) Name after the business combination
Tokyo TY Financial Group, Inc. (“Tokyo TY Financial Group”)(6) Ratio of voting rights acquired
100%(7) Main basis for deciding on the acquiring company
Tokyo Tomin Bank was designated as the acquiring company as a result of comprehensive
consideration of factors including acquisition-deciding factors in the Accounting Standard forBusiness Combinations and various other factors.

15

2. Period of the inclusion of the acquired company’s results in the consolidated financial
statements
October 1, 2014 to March 31, 2015
3. Acquisition cost of the acquired company and a breakdown of that cost
The market value of common stocks exchanged for the common stocks
of Yachiyo Bank held immediately before the stock transfer on thebusiness combination date of the Tokyo TY Financial Group¥371 million

The market value of common stocks of the Tokyo TY Financial Groupexchanged on the business combination date

¥52,594 million

Acquisition cost
¥52,966 million
4. Acquisition cost of the acquired company and difference between the total acquisition cost foreach transaction leading to the acquisition
Loss on step acquisition¥3 million
5. Transfer ratio by class of shares, the calculation method, and number of shares delivered(1) Transfer ratio by class of shares(i) 0.37 common stocks of the Tokyo TY Financial Group for every common stock of Tokyo
Tomin Bank(ii) 1 common stock of the Tokyo TY Financial Group for every common stock of Yachiyo Bank
(2) Calculation method
The calculation of the share transfer ratio was commissioned to multiple financial advisors as
third-party calculation institutions, and the calculations were conducted based on the report submitted
through consultations between the parties involved.
(3) Number of shares delivered
Common stocks
29,227,826 shares
6. Assets received and liabilities assumed on the business combination date and a breakdown of the
major items(1) Assets
Total assets¥2,260,320 million
Of which, loans¥1,444,364 million
Of which, securities¥622,404 million
Of which, reserve for possible loan losses (¥12,460 million)(2) Liabilities
Total liabilities¥2,156,770 million
Of which, deposits¥2,122,129 million
7. The amount of gain on bargain purchase and the reason for recognizing a gain on bargain
purchase(1) The amount of gain on bargain purchase¥50,476 million(2) Reason for recognizing a gain on bargain purchase
The net amount allocated to the assets acquired and liabilities assumed exceeded the acquisition
cost, and the excess amount is recognized as a gain on bargain purchase.
8. Approximate amount and calculation method of the effect of the business combination on the
consolidated statement of income for the current fiscal year if the business combination had
been completed at the beginning of the current fiscal year
Ordinary income¥19,898 million
Operating profit¥5,163 million
Net income¥3,604 million
The estimated above impact amount was calculated by making adjustments believed to benecessary for the consolidated statement of income amounts for the acquired company Yachiyo Bank
from April 1, 2014 to September 30, 2014.
Note that the estimate above has not been audited by Ernst & Young ShinNihon LLC.

16

(Segment information)
The Group’s only reporting segment is the banking business. Note that while the Group conducts
businesses other than the banking business including a computer-related service business, aninformation provision service business, and credit card services, this information has been omitted
because the ratio of these businesses to all segments is not material.
(Per Share Information)
Reporting period(Year ended March 31, 2015)
Net assets per share¥

6,959.92

Net income per share¥

2,638.39

Diluted net income per share¥

2,561.38

Notes:
1. The calculation basis for net asset amount per share is as follows.
Reporting period(Year ended March 31,2015)

Item
Total of net assets(¥ million)

202,580

Amount deducted from total of net assets(¥ million)245(¥ million)245(¥ million)

202,334

Thousand shares

29,071

Minority shareholder equity
Net asset amount for common stock at the year-end
Number of shares of common stock at the year-end used for
calculating net asset amount per share
2.

The following is the basis for calculating the amount of net income per share and the amount of diluted net income pershare for the reporting period.
Reporting period(Year ended March 31, 2015)

Item
Net income per share
Net income(¥ million)

57,290

Amount not belonging to common stock(¥ million)－

Net income in relation to common stock(¥ million)

57,290Thousand shares

21,714Weighted-average shares of ordinary stock during the period
Diluted net income per share
Net income adjustment amountInterest on bonds with subscription rights to shares(net of applicable taxes)
Effect of dilutive securities
Summary of residual securities not included in calculation of net
profit per share after adjustment of residual securities because
they have no dilutive effects(¥ million)

34(¥ million)

34

Thousand shares

666－

3. As stated in “Changes in Accounting Policies,” the Accounting Standard for Retirement Benefits (ASBJ Statement No.
26, May 17, 2012; hereafter, the “Accounting Standard for Retirement Benefits”) and the Guidance on AccountingStandard for Retirement Benefits (ASBJ Guidance No. 25, March 26, 2015; hereafter, the “Guidance on AccountingStandard for Retirement Benefits”) have been adopted from the current consolidated fiscal year, specifically the
stipulations of Article 35 of the Accounting Standard for Retirement Benefits and Article 67 of the Guidance on
Accounting Standard for Retirement Benefits, and accordingly the transitional treatment as stipulated in Article 37 of the
Accounting Standard for Retirement Benefits applies.
For this reason, net assets per share at the beginning of the current consolidated fiscal year, net income per share, anddiluted net income per share increased by ¥18.17, ¥17.26, and ¥16.74, respectively.

17

(Significant Subsequent Events)
The Company resolved to dissolve Tomingin Office Support Center Co., Ltd. that was a consolidated
subsidiary of the Company at the Board of Directors held on April 30, 2015 as follows.
1. Reason for dissolution
While the subsidiary that was dissolved had conducted administrative clerical services for thesubsidiary The Tokyo Tomin Bank, Limited, a resolution was made to dissolve Tomingin Office Support
Center Co., Ltd. as part of efforts to improve the management efficiency of the Group.
2. Overview of the dissolved subsidiary
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Trade nameBusiness
Establishment date
Location of the head office
Representative
Capital (Issued and outstanding shares)
Ownership
Number of employees
Total net assets
Total assets
Net sales
Net income

Tomingin Office Support Center Co., Ltd.
Outsourcing of concentrated administrative services
March 20, 1998
2-4-1 Roppongi, Minato-ku, Tokyo
Ryuichi Tanahashi¥10 million (200 shares)
Wholly-owned by The Tokyo Tomin Bank, Limited
107 as of April 1, 2015¥259 million¥296 million¥405 million¥14 million

3. Timing of dissolution
Scheduled to be dissolved on June 30, 2015 and liquidated around the end of September 2015.
4. The impact of the dissolution on profit or loss
The dissolution will not have a material effect on the Company’s consolidated results for the fiscal
year ending March 31, 2016.
5. The impact of the dissolution on sales activities
The dissolution will not have a material effect on the Company’s sales activities.

186. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(¥ million)
As of March 31, 2015
AssetsCurrent assets
Cash and due from banks

1,544

Prepaid expenses

1

Income taxes receivable

312

Deferred tax assets

14

Total current assets

1,873

Non-current assets
Investments and other assets
Shares of subsidiaries and associates

134,845

Loans receivable from subsidiaries and associates

5,000

Total investments and other assets

139,845

Total ｎon-current assets

139,845

Deferred assets
Organization expenses

64

Share issuance cost

9

Total deferred assets

74

Total assets

141,793

Liabilities
Current liabilities
Accounts payable - other34

Income taxes

34

Deposits received

10

Reserve for employee bonuses

24

Total current liabilities

103

Non-current liabilities
Bonds with subscription rights to shares

5,000

Total non-current liabilities

5,000

Total liabilities

5,103

Net assets
Shareholders’ equity
Common stock

20,000Capital surplus
Capital reserve

5,000

Other capital surplus

110,276

Total capital surplus

115,276

Retained earnings
Other retained earnings
Retained earnings brought forward

1,957

Total retained earnings

1,957

Treasury stock(544)

Total shareholders’ equity

136,689

Total net assets

136,689

Total liabilities and net assets

141,79319

(2) Non-consolidated Statements of Income(¥ million)
Year ended
March 31, 2015
Operating income
Dividends from subsidiaries and associates

1,849

Commissions from subsidiaries and associates

534

Total operating income

2,383

Operating expenses
Selling, general and administrative expenses

349

Total operating expenses

349

Operating profit

2,034

Non-operating income
Interest income

53

Miscellaneous income

0

Total non-operating income

53

Non-operating expenses
Interest expenses

53

Amortization of deferred organization expenses

7

Amortization of share issuance cost1

Total non-operating expenses

62

Ordinary profit

2,024

Income before income taxes

2,024

Income taxes - current

82

Income taxes - deferred(14)

Total income taxes

67

Net income

1,957

20

(3) Non-consolidated Statements of Changes in Net Assets(Year ended March 31, 2015)(¥ million)
Shareholders’ equity
Capital surplus

Commonstock

Balance at beginningof the year
Changes during thereporting period
Share transfer

Capitalreserve

Other capitalsurplus

Total capitalsurplusOtherretainedearnings
Retainedearnings
brought
forward
-

-

-

-

-

20,0005,000

110,276

115,276

Net income
Acquisition oftreasury stock
Disposition oftreasury stock
Total of changes
during the reporting
periodBalance at end of
period

1,957

0

0

Treasury
stock

Total
retainedearnings

-

-

Total
Shareholders’equityTotal net
assets--135,276

135,276

1,957

1,957

(546)

(546)

(546)

1

1

1

1,957

20,0005,000

110,276

115,276

1,957

1,957

(544)

136,689

136,689

20,0005,000

110,276

115,276

1,957

1,957

(544)

136,689

136,689(4) Notes on Premise of Going Concern
Not applicable.

217. (Reference) Overview of Major Consolidated Subsidiary Operating Performance(1) Non-consolidated Financial Statements (The Tokyo Tomin Bank, Limited)
May 15, 2015
Company name： The Tokyo Tomin Bank, Limited
Representative: Akihiro Kakizaki, President
Responsible person for inquiries: Yousuke Kido, General Manager, Corporate Planning Division
URL: http://www.tominbank.co.jp
Telephone: +81-3-3582-8251
Note: Figures have been rounded down to the nearest million yen.

1. Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2015

(From April 1, 2014 to March 31, 2015)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)
Ordinary income

FY2014

Ordinary profit

Net income(¥ million)(%)(¥ million)(%)(¥ million)(%)

44,477

(0.0)

6,826

43.6

3,482

(17.5)

4,222

103.1

44,479
(3.3)
4,753
94.2
FY2013(Reference) FY2014: Total number of shares issued at the end of the period
38,835,787 shares
Average number of shares during the period
38,830,022 shares(2) Non-consolidated financial position

FY2014

Total assets(¥ million)

Total net assets(¥ million)

Net assets to total assets ratio(%)

2,687,314

89,225

3.3

2,541,812

81,6453.2
FY2013(Reference) Equity:
FY2014: ¥89,225 million FY2013: ¥81,566 million(Note) “Equity” consists of minority interests at the end of the period subtracted from total assets and “Net assets to total assets
ratio” is calculated by dividing equity by total assets at the end of the period.
Note that this “Net assets to total assets ratio” is not the net assets to total assets ratio required for the Capital Adequacy
Ratio Notification.

22

○ Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets

The Tokyo Tomin Bank, Limited(¥ million)
As of March 31, 2014

As of March 31, 2015

133,105

213,293

AssetsCash and due from banks
Cash on hand

25,37922,727

Due from banks

107,726

190,565

Call loans

22,2903,442

Other debt purchased

192

65

Trading account securities

45

177

Trading account Japanese government bonds

42

161

Trading account Municipal government bonds

3

16

Securities

513,166

586,219

Japanese government bonds

313,004

315,341

Municipal government bonds

49,64749,488

Corporate bonds

109,106

102,908

Corporate stocks

26,332

32,842Other securities

15,07585,639Loans and bills discounted

1,831,521

1,828,147

Bills discounted

32,17429,838Loans on bills

76,17275,072Loans on deeds

1,566,090

1,580,034

157,082

143,201

Foreign exchange

4,750

5,544

Due from foreign banks

2,668

2,739

Overdrafts

Foreign bills of exchange bought

49

604

Foreign bills of exchange receivable

2,032

2,200

Other assets

13,781

12,483

Prepaid expenses

395

369

Accrued income

2,484

2,461

Financial derivatives

2,861

2,600

Other assets

8,040

7,051

Tangible fixed assets

14,86832,259Buildings

5,829

5,709

Land

7,550

22,843405

451

Construction in progress

－

2,160

Other tangible fixed assets

1,083

1,095

Leased assets

Intangible fixed assets

2,133

1,850

Software

1,861

1,459

47

120

Leased assets

224

271

Prepaid pension cost

Other intangible fixed assets

9,803

11,607

Deferred tax assets

11,6695,597

Customers’ liabilities for acceptances and guarantees

4,234

3,133

Reserve for possible loan losses
Total assets

23(19,749)(16,508)

2,541,812

2,687,314

The Tokyo Tomin Bank, Limited(¥ million)
As of March 31, 2014

As of March 31, 2015

2,368,778

2,379,799

Current deposits

166,102

169,843

Ordinary deposits

909,185

949,587

Savings deposits

18,424

17,792

Liabilities
Deposits

Deposits at noticeTime deposits

18,984

20,714

1,149,050

1,117,374

Installment savings

61,50258,156

Other deposits

45,52846,330

Negotiable certificates of deposit
Payables under securities lending transactions
Borrowed money
Borrowings from other banks
Foreign exchange

28,207

25,838－140,876

12,226

7,209

12,226

7,209

118

138

Due to foreign banks

1

1

Foreign bills of exchange sold

63

51

53

85

Bonds

Foreign bills of exchange payable

30,60025,600

Other liabilities

14,247

13,757

Income taxes

146

256

Accrued expenses

2,240

1,989

Unearned income

1,432

1,195

64

29

Reserve for interest on installment savings
Financial derivatives

1,877

1,702

Cash collateral received for financial instruments

266

127

Lease obligations

488

598

Asset retirement obligations

202

203

7,528

7,653

1,101

1,076

100

101

2

2

Reserve for loss on dormant deposit repayments

164

236

Reserve for contingent loss

369

302

Deferred tax liabilities for land revaluation

16

15

Other liabilities
Reserve for employee bonuses
Reserve for directors’ retirement benefits
Reserve for point card certificates

Acceptances and guarantees
Total liabilities

24

4,234

3,133

2,460,167

2,598,089

The Tokyo Tomin Bank, Limited(¥ million)
As of March 31, 2014

As of March 31, 2015

Common stock

48,12048,120Capital surplus

18,08318,08318,08318,083

Net Assets

Capital reserve－－

Retained earnings

15,641

15,369Earned reserve

2,922

3,408

Other retained earnings

12,719

11,960General reserve

6,400

6,400

Other capital surplus

6,319

5,560

Treasury stock

Retained earnings brought forward(1,602)－

Total shareholders’ equity

80,243

81,573Net unrealized gain on available-for-sale securities

1,534

7,862

Revaluation reserve for land

(211)

(210)

Total valuation and translation adjustments

1,323

7,651

79

－

81,64589,2252,541,812

2,687,314

Stock purchase warrants
Total net assets
Total liabilities and net assets

25

(2) Non-consolidated Statements of Income
The Tokyo Tomin Bank, Limited(¥ million)
Year ended
March 31, 2014

Year ended
March 31, 2015

Ordinary income

44,47944,477

Interest income

31,97831,526

Interest on loans and bills discounted

28,09026,720Interest and dividends on securities

3,493

4,398

Interest on call loans
Interest on receivables under securities borrowing
transactions
Interest on deposits with banks

129

86

4

9

63

121

Other interest income

196

190

8,394

9,221

Fees and commissions on domestic and foreign exchange

2,030

2,003

Other fees and commissions

6,363

7,218

Fees and commissions

Other operating income
Gain on foreign exchange transactions

2,636

2,177

1,485

1,035

Gain on sale of bonds

757

618

Income from derivatives other than for trading or hedging

325

522

Other
Other ordinary income
Gain on recovery of write-off claims
Gain on sale of stocks and other securities
Gain on equity derivatives

68

0

1,469

1,552

2

0

1,003

252

17

7

Other

445

1,292

Ordinary expenses

39,72637,651

Interest expenses

2,384

2,245

1,359

1,163

Interest on negotiable certificates of deposit

21

38

Interest on call money－

0Interest on deposits

Interest on payables under securities lending transactions

4

109

Interest on borrowed money

264

207

Interest on corporate bonds

704

698

Other interest expenses
Fees and commissions
Fees and commissions on domestic and foreign exchange
Other fees and commissions
Other operating expenses

29

27

2,838

2,834

419

429

2,418

2,405

18

16

Loss on trading account securities transactions

2

0

Loss on sale of bonds

16

16

Gain on sale of bonds

0－

General and administrative expenses

31,19830,016

Other ordinary expenses

3,285

2,539

2,167

1,279

Transfer to reserve for possible loan losses
Write-off of loans
Loss on sale of stocks and other securities

177

8

0

25

Loss on devaluation of stocks and other securities

74

39

Other

865

1,185

Ordinary profit

4,753

6,826

26

The Tokyo Tomin Bank, Limited(¥ million)
Year ended
March 31, 2013

Year ended
March 31, 2014

Extraordinary income－－

Extraordinary losses
Loss on deposition of fixed assets

80

66

80

66

4,672

6,759

Income before income taxes
Income taxes – current

20

255

Income taxes – deferred

429

3,021

Total income taxes
Net income

27

450

3,277

4,222

3,482

(2) Non-consolidated Financial Statements (The Yachiyo Bank, Limited)
May 15, 2015
Company name: The Yachiyo Bank, Limited
Representative: Hirokazu Tahara, President
Responsible person for inquiries: Hiroshi Adachi, Executive Officer, General Manager of Corporate
Planning Division
URL: http://www.yachiyobank.co.jp
Telephone: +81-3-3352-2295
Note: Figures have been rounded down to the nearest million yen.

1. Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2015

(From April 1, 2014 to March 31, 2015)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)
Ordinary income(¥ million)

Ordinary profit

Net income(%)(¥ million)(%)(¥ million)(%)

FY201441,012

1.4

9,368

19.6

6,067

(0.9)

FY201340,427

(3.5)

7,827

9.7

6,125

17.2

(Reference) FY2014: Total number of shares issued at the end of the period
Average number of shares during the period

14,858,585 shares
14,855,845 shares(2) Non-consolidated financial position

FY2014

Total assets(¥ million)

Total net assets(¥ million)

Net assets to total assets ratio(%)

2,254,512

104,7264.6

2,204,692
98,2204.4
FY2013(Reference) Equity:
FY2014: ¥104,726 million
FY2013: ¥98,220 million(Notes)1. “Equity” consists of total net assets at the end of the period, and the “Net assets to total assets ratio” is calculated by dividing
equity by total assets at the end of the period. Note that this “Net assets to total assets ratio” is not the net assets to total assets
ratio required for the Capital Adequacy Ratio Notification.
2. “Provision for contingent loss,” which was included in “Allowance for loan losses” in the fiscal year ended March 31, 2014, ispresented separately from the fiscal year ended March 31, 2015. Accordingly, total assets as of March 31, 2014 has reflected thechange in presentation.

28

○ Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets

The Yachiyo Bank, Limited(¥ million)
As of March 31, 2014

As of March 31, 2015

Cash and due from banks

62,14085,467

Cash on hand

22,87822,547

Due from banks

39,261

62,920Call loans

44,661

25,495

Other debt purchased

2,438

2,946

342

429

AssetsTrading account securities
Trading account Japanese government bonds

52

41

Trading account Municipal government bonds

290

387

27

－

Securities

628,693

637,916

Japanese government bonds

305,587

276,884

Municipal government bonds

66,68964,782

Corporate bonds

219,929

244,715

Corporate stocks

13,255

14,824

Money held in trust

Other securities
Loans and bills discounted
Bills discounted

23,231

36,7081,427,267

1,466,028

17,14016,199Loans on bills

21,971

20,777Loans on deeds

1,333,093

1,376,400

Overdrafts

55,061

52,651

Foreign exchange

3,145

2,186

Due from foreign banks

2,551

1,691

154

165

Foreign bills of exchange bought
Foreign bills of exchange receivable

438

329

4,680

4,690

Prepaid expenses

19

118

Accrued income

1,839

1,813

233

132

Other assets

Financial derivatives
Other assets

2,587

2,625

Tangible fixed assets

30,47630,176

Buildings

7,864

7,767

Land

20,686

20,686

Leased assets

575

502

Construction in progress

61

63

Other tangible fixed assets

1,288

1,156

Intangible fixed assets

1,860

1,265

Software

1,590

1,021

Software in progress

14－

Leased assets

24

14

Other intangible fixed assets
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Allowance for loan losses
Total assets

29

230

230

6,615

4,551

4,215

3,497

(11,870)(10,139)2,204,692

2,254,512

The Yachiyo Bank, Limited(¥ million)
As of March 31, 2014

As of March 31, 2015

2,079,102

2,122,761

Current deposits

48,102

51,141

Ordinary deposits

1,026,683

1,097,833

Savings deposits

22,652

21,948

Liabilities
Deposits

Deposits at noticeTime deposits

1,862

1,541

935,170909,534

Installment savings

22,83522,030

Other deposits

21,79518,730

Negotiable certificates of deposit
Borrowed money
Borrowings from other banks
Foreign exchange
Foreign bills of exchange sold
Foreign bills of exchange payable

3,050

3,930

170

5,000

170

5,000

7

0

0

0

7

0

Bonds with subscription rights to shares

5,000

－

Other liabilities

5,300

6,447

Income taxes

576

1,605

Accrued expenses

1,297

1,293

Unearned income

187

178

Deposits received from employees

533

539

Reserve for interest on installment savings

13

10

Financial derivatives

279

254

Lease obligations

641

547

Asset retirement obligations

29

94

1,741

1,922

Reserve for employee bonuses

Other liabilities

877

869

Reserve for retirement benefits

4,712

3,546

566

608

Reserve for loss on dormant deposit repayments
Provision for contingent loss

508

438

Deferred tax liabilities for land revaluation

2,961

2,687

Acceptances and guarantees

4,215

3,497

2,106,472

2,149,786

Total liabilities

30

The Yachiyo Bank, Limited(¥ million)
As of March 31, 2014

As of March 31, 2015

Common stock

43,73443,734

Capital surplus

32,922

32,922

32,922

32,922

Net Assets

Capital reserve－－

Retained earnings

20,89923,574

Earned reserve

5,425

5,836

Other retained earnings

15,473

17,738General reserve

8,200

11,700

Other capital surplus

7,273

6,038

Treasury stock

Retained earnings brought forward(1,759)－Total shareholders’ equity

95,797100,232

Net unrealized gain on available-for-sale securities

2,098

3,891

(16)

(12)

Deferred gains or losses on hedges
Revaluation reserve for land

341

615

Total valuation and translation adjustments

2,422

4,494

Total net assets

98,220104,726

2,204,692

2,254,512

Total liabilities and net assets(Note) From the current fiscal year, “Provision for contingent loss,” which was included in “Allowance for loan losses” in theprevious fiscal year, is presented separately. Reflecting the change in the presentation, the “Allowance for loan losses” of 12,378
million yen reported in the balance sheet of the previous fiscal year was reclassified and presented as “Allowance for loan losses” of
11,870 million yen and “Provision for contingent loss” of 508 million yen.

31

(2) Non-consolidated Statements of Income
The Yachiyo Bank, Limited(¥ million)
Year ended
March 31, 2014

Year ended
March 31, 2015

Ordinary income

40,42741,012

Interest income

29,923

28,845Interest on loans and bills discounted

23,06922,356

Interest and dividends on securities

6,191

5,861

Interest on call loans

144

116

Interest on deposits with banks

23

75

Other interest income
Fees and commissions
Fees and commissions on domestic and foreign exchange
Other fees and commissions

494

435

4,792

5,537

1,950

1,903

2,841

3,634

3,264

2,980

Gain on foreign exchange transactions

282

358

Gain on trading account securities transactions

－

2

2,912

2,488

68

130

Other operating income

Gain on sale of bonds
Income from derivatives other than for trading or hedging
Other ordinary income

2,448

3,649

Reversal of allowance for loan losses

155

1,488

Gain on recovery of write-off claims

717

779

Gain on sale of stocks and other securities

122

241

0

0

Gain on money held in trust
Other

1,452

1,139

Ordinary expenses

32,60031,644

Interest expenses

1,472

1,452

1,341

1,304

Interest on negotiable certificates of deposit

11Interest on call money

00Interest on payables under securities lending transactions

1

12

Interest on borrowed money

4

55

107

53

Interest on deposits

Interest on bonds with subscription rights to sharesInterest on interest swaps

8

9

Other interest expenses

6

15

2,173

2,196

424

422

1,749

1,774

24

74

Loss on trading account securities transactions

2－

Loss on sale of bonds

21

74

General and administrative expenses

26,75326,077

Other ordinary expenses

2,177

1,843

Write-off of loans

1,258

945

Loss on sale of stocks and other securities

71

10

Loss on devaluation of stocks and other securities

46－

Fees and commissions
Fees and commissions on domestic and foreign exchange
Other fees and commissions
Other operating expenses

Other

800

887

Ordinary profit

7,827

9,368

32

The Yachiyo Bank, Limited(¥ million)
Year ended
March 31, 2014
Extraordinary income

Year ended
March 31, 2015
0

0

0

0

41

13

41

13

Income before income taxes

7,786

9,354

Income taxes – current

1,107

2,142

Income taxes – deferred

553

1,144

Total income taxes

1,660

3,286

Net income

6,125

6,067

Gain on disposal of non-current assets
Extraordinary losses
Loss on deposition of fixed assets(Note) From the current fiscal year, “Reversal of provision for contingent loss,” which was included in “Reversal of allowance forloan losses” within “Other ordinary income” in the previous fiscal year, is reclassified as “Other ordinary income.” Reflecting thisreclassification, the “Reversal of allowance for loan losses” of 199 million yen reported under “Other ordinary income” in thestatement of income for the previous fiscal year was reclassified as “Reversal of allowance for loan losses” of 155 million yen and“Other” of 44 million yen within “Other ordinary income.”33

8. Changes to Directors
For details on changes to directors, refer to “HR matters concerning the directors and executive directors ofsubsidiaries” released on May 15, 2015.

34