Tokyo Kiraboshi Financial Group, Inc.
Listed Code: 7173
(URL: https://www.tokyo-kiraboshifg.co.jp)
Listed Stock Exchange: TSE1
May 12, 2021

Consolidated Financial Reportfor the Fiscal Year Ended March 31, 2021
<Under Japanese GAAP>
Representative: Hisanobu Watanabe, President
Responsible person for inquiries: Nobuyuki Yasuda, General Manager of Corporate Planning Division
Telephone: +81-3-6447-5799
Date of Ordinary General Meeting of Shareholders: June 29, 2021
Date of submission of annual security report: June 29, 2021
Date to start dividend payment: June 8, 2021
Preparation of supplementary material on financial results: Yes
Holding of financial results presentation meeting: Yes(by webcast)
Note: Figures have been rounded down to the nearest million yen.

1. Consolidated Operating Performance for the Fiscal Year Ended March 31, 2021
(From April 1, 2020 to March 31, 2021)(1) Results in consolidated operations
Ordinary income(¥ million)(%)(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent(¥ million)(%)(¥ million)(%)

Fiscal year ended March 31, 2021
Fiscal year ended March 31, 2020

93,352(0.7)
8,224
94,03119.3
2,347(Note) Comprehensive income: Fiscal year ended March 31, 2021: ¥17,616 million 393.3%
Fiscal year ended March 31, 2020: ¥3,571 million (18.9%)
Profit attributableto owners ofparent per share(¥)

Fiscal year ended March 31, 2021
Fiscal year ended March 31, 2020

128.87244.21(Reference) Gain on equity-method investments:

250.3(32.5)

4,161
7,657

(45.6)
55.8

Profit attributable Net income Ordinary profit Ordinary profit
to net assets to total assets
to ordinary
to owners of(%)(%)
incomeparent per share(Diluted) (¥)
(%)
63.93
127.49

1.3
2.6

Fiscal year ended March 31, 2021:

0.1
0.0

8.8
2.4

¥24 million

Fiscal year ended March 31, 2020: ¥17 million(2) Consolidated financial position
Total assets(¥ million)

Total net assets(¥ million)

Net assets tototal assets ratio (%)

Fiscal year ended March 31, 2021
5,921,945
310,880
Fiscal year ended March 31, 2020
5,501,145
294,462(Reference) Equity:
Fiscal year ended March 31, 2021: ¥310,849 million
Fiscal year ended March 31, 2020: ¥294,405 million

5.2
5.3

Net assets
per share(¥)
8,416.05
7,880.94(Note)“Equity” consists of subscription rights to shares at the end of the fiscal year and non-controlling interests at the end of theperiod subtracted from net assets, and the “Net assets to total assets ratio” is calculated by dividing equity by total assets at theend of the fiscal year. 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 (Financial Services Agency Notification No. 20 of 2006).

(3) Consolidated cash flows
Cash flow fromoperating activities(¥ million)
Fiscal year ended March 31, 2021
Fiscal year ended March 31, 2020

Cash flow frominvesting activities(¥ million)

232,544
25,433(15,335)
118,200

Cash flow fromfinancing activities(¥ million)

Cash and cash
equivalents at
year-end(¥ million)(2,003)(7,277)753,492538,286

2. Dividends
Annual dividend per share (¥)
Firstquarter

SecondquarterThird Fiscal yearAnnual
quarterend

Total dividends (fullyear) (¥ million)

Payout ratio(consolidated)(%)

Dividends ratio
to shareholders’equity(consolidated)(%)

Fiscal year
–
30.00
–
30.00
60.00
1,827
24.5
0.7
ended March 31, 2020
ended March 31, 2021
–
30.00
–
30.00
60.00
1,827
46.5
0.7
ending March 31, 2022
–
30.00
–
30.00
60.00
18.7
(Forecast)(Note) “Dividends” above refers to dividends for common stock. With regard to dividends for class shares (unlisted) issued by
the Company with different rights than those of common stock, refer to “Dividend situation for class shares” below.

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2022
(From April 1, 2021 to March 31, 2022)(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 attributable toowners of parent

Ordinary profit

Second-quarter period(cumulative)
Full-year

Profit attributable toowners of parent per share(¥ million)(%)(¥ million)

(%)

(¥)

5,500

55.3

3,500

70.1

111.0415,00082.3

10,000140.2

320.82* Notes(1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries
resulting in change in scope of consolidation): No
Included subsidiaries: ___ (name of company(ies)) ___Excluded subsidiaries: ___ (name of company(ies)) ___(Note) For details, please refer to “(6) Changes to significant subsidiaries in “4. Consolidated Financial Statements andNotes” on page 14 of the Attached Materials.

(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period
financial statements after error corrections
a. Changes in accounting policies due to revisions to accounting standards: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement of prior period financial statements after error corrections: None(3) Number of shares issued (common stock)a. Total number of shares issued at the end of the period (including treasury stock)
March 31, 2021

30,650,115 shares

March 31, 2020

30,650,115 sharesb. Number of treasury stock at the end of the period
March 31, 2021

264,532 shares

March 31, 2020

287,585 sharesc. Average number of shares during the period
Fiscal year ended March 31, 2021

30,380,902 sharesFiscal year ended March 31, 2020

30,369,287 shares(Note)The Company introduced Board Benefit Trust and the Company’s shares held by the said trust are included in treasury
stock.

(Reference) Non-consolidated Financial Statements
1. Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2021
(From April 1, 2020 to March 31, 2021)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)

Operating income
Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2020

Ordinary profit

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

(%)

3,892

(37.1)

2,732(48.2)

2,743(47.9)

2,689(48.5)

6,190

99.0

5,284

128.6

5,274

131.7

5,225

143.1

Net income per
share
Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2020

Operating profit(¥ million)(¥)

Diluted net income
per share
(¥)

80.42

41.31

164.1687.01

(2) Non-consolidated financial position
Total assets(¥ million)

Total net assets(¥ million)

Fiscal year ended March 31, 2021
200,350
Fiscal year ended March 31, 2020
199,169(Reference)
Equity:Fiscal year ended March 31, 2021: ¥199,624 million
Fiscal year ended March 31, 2020: ¥198,940 million

199,655
198,997

Net assets to total
assets ratio (%)

Net assets
per share
(¥)

99.6
99.8

4,755.58
4,736.77(Note)“Equity” consists of subscription rights to shares at the end of the fiscal year subtracted from net assets, and the “Net assets
to total assets ratio” is calculated by dividing equity by total assets at the end of the fiscal year. Note that this “Net assets tototal assets ratio” is not the net assets to total assets ratio required for the Capital Adequacy Ratio Notification (Financial
Services Agency Notification No. 20 of 2006).
<Reasons for the difference in the non-consolidated financial statements between fiscal years ended March 31, 2020 and
2021.>The Company received an extraordinary dividend from its consolidated subsidiary, Kiraboshi Bank,Ltd., in the fiscal year
ended March 31, 2020, resulting in differences in actual numbers between the fiscal years ended March 31, 2020 and 2021.
* The consolidated financial report is outside the scope of review by certified public accountants and audit
corporations.
* 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 the forecasts were made and certain assumptions judged to be reasonable. However, the Company
makes no guarantee that these forecasts will be achieved, and actual results may differ significantly from theforecasts due to a variety of factors.

* Dividend situation for class shares
The breakdown of dividend per share for class shares with different rights to those of common stock is as follows.
(First Series Class I preferred shares)
Dividend per share (¥)
First quarter
Second quarter
Third quarter
Fiscal year-end
Fiscal year ended March 31, 2020–
124.00–124.00Fiscal year ended March 31, 2021–
125.00–125.00Fiscal year ending March 31, 2022–
126.00–126.00(Forecast)(Notes)
1. Amount paid per share: ¥20,000
2. Computation used to calculate dividend per share(1) Fiscal year ended March 31, 2020(a) Computation
Dividend in first fiscal year = amount paid per share × annual dividend rate(b) Annual dividend rate (*)
Annual dividend rate = Japanese yen TIBOR + 1.1%(c) Japanese yen TIBOROn April 1, 2019, the Japanese yen TIBOR (12-month maturity) = 0.13636%(d) Shares issued
750,000(2) Fiscal year ended March 31, 2021
(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate (*)
Annual dividend rate = Japanese yen TIBOR + 1.1%(c) Japanese yen TIBOROn April 1, 2020, the Japanese yen TIBOR (12-month maturity) = 0.14636%(d) Shares issued
750,000(3) Fiscal year ending March 31, 2022 (Forecast)(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate (*)
Annual dividend rate = Japanese yen TIBOR + 1.1%(c) Japanese yen TIBOROn April 1, 2021, the Japanese yen TIBOR (12-month maturity) = 0.15636%(d) Shares issued
750,000

Annual248.00250.00252.00* For annual dividend rate, figures less than one percent are calculated to three decimal places with the third decimal placeis rounded off to the second decimal place.

(Class II preferred shares)
First quarter––

Second quarter
13.636
14.636

Dividend per share (¥)
Third quarter
Fiscal year-end–
13.636–
14.636

Fiscal year ended March 31, 2020
Fiscal year ended March 31, 2021
Fiscal year ending March 31, 2022–
15.636–(Forecast)(Notes)
1. Amount paid per share: ¥20,000
2. Computation used to calculate dividend per share(1) Fiscal year ended March 31, 2020(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate
Annual dividend rate = Japanese yen TIBOR + 0.0%(c) Japanese yen TIBOROn April 1, 2019, the Japanese yen TIBOR (12-month maturity) = 0.13636%(d) Shares issued
2,000,000(2) Fiscal year ended March 31, 2021
(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate
Annual dividend rate = Japanese yen TIBOR + 0.0%(c) Japanese yen TIBOROn April 1, 2020, the Japanese yen TIBOR (12-month maturity) = 0.14636%(d) Shares issued
2,000,000(3) Fiscal year ending March 31, 2022 (Forecast)(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate
Annual dividend rate = Japanese yen TIBOR + 0.0%(c) Japanese yen TIBOROn April 1, 2021, the Japanese yen TIBOR (12-month maturity) = 0.15636%(d) Shares issued
2,000,000

15.636

Annual27.27229.27231.272

Attached Materials

Index
1. Overview of Operating Results etc.
(1)

Overview of Operating Results and Financial Position for
the Consolidated Fiscal Year Ended March 31, 2021 ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

2(2)

Projection ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

3(3)

Basic Policy for Profit Distribution and Dividends for This Term and the Next Termꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

3

2. Overview of the Tokyo Kiraboshi Financial Group ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

3-5

3. Basic Views on Selection of Accounting Standards ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

5

4. Consolidated Financial Statements and Notes(1)

Consolidated Balance Sheets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

6-7

(2)

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

8-9

(3)

Consolidated Statements of Changes in Net Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10-11(4)

Consolidated Statements of Cash Flows ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 12-13(5)

Notes on Premise of Going Concern ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

14

(6)

Changes in significant subsidiaries during the current period ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

14

(7)

Notes to Consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 14-20(Reference) Trust asset balance table ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

21

5. Non-consolidated Financial Statements and Notes(1)

Non-consolidated Balance Sheets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

22

(2)

Non-consolidated Statements of Incomeꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

23

(3)

Non-consolidated Statements of Changes in Net Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

24

(4)

Notes on Premise of Going Concern ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

24

6. (Reference) Non-consolidated Financial Statements of Kiraboshi Bank,Ltd.
(1)

Overview of Non-consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

(2)

Non-consolidated Balance Sheets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 26-27(3)

Non-consolidated Statements of Incomeꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

* Financial Results for the Fiscal Year Ended March 31, 2021 Supplementary Information

1

26
28

1. Overview of Operating Results etc.
(1) Overview of Operating Results and Financial Position for the Consolidated Fiscal Year Ended
March 31, 2021
(Overview of operating results for the consolidated fiscal year ended March 31, 2021)
In the consolidated operating results for the fiscal year ended March 31, 2021, consolidated ordinary profit
increased by ¥5.8 billion year-on-year to ¥8.2 billion due largely to an increase in interest on loans and discounts
reflecting growth notably in COVID-19-related loans, an increase in gains on stocks and other securities, and adecrease in credit-related costs. However, profit attributable to owners of parent decreased by ¥3.4 billion year-onyear to ¥4.1 billion, given the absence of gain on transfer of Shinjuku Office which was posted as extraordinary incomein the previous fiscal year, as well as increase in income taxes.
The main factors affecting operating results of Kiraboshi Bank,Ltd. are as follows.
(i) Net interest income:An increase of ¥2.2 billion year-on-year reflecting increases in interest on loans anddiscounts and in interest subsidies associated largely with COVID-19-related loans,
offsetting a decrease in interest on securities attributable primarily to sale andredemption of Japanese government bonds.
(ii) Non-interest income:A decrease of ¥0.8 billion year-on-year due in part to voluntary restraint of sales
activities during the state of emergency.
(iii) Credit-related costs:
A decrease of ¥2.9 billion year-on-year notwithstanding provision made inconsideration of the impact of COVID-19 on restaurants and hotels, due to suchfactors as a reversal of additional provision that had been made in FY2019 for possible
impact of COVID-19.
(iv) Gains on bonds:

A decrease of ¥4.7 billion year-on-year reflecting sale of government bonds executedin FY2019 that was intended to be appropriated for the additional provision made.
(v) Gains on stocks and other securities:
An increase of ¥5.4 billion year-on-year due largely to sale of stocks held for strategic
purposes.
(vi) Extraordinary income:A decrease of ¥4.6 billion year-on-year reflecting recognition in FY2019 of the gain ontransfer of the Shinjuku Office.
(vii) Income taxes:
An increase of ¥3.2 billion year-on-year due to a decrease in deferred tax assets in
FY2020 resulting from sale of the Shinjuku Office, etc. in FY2019 which led toreduction in tax loss carryforward.
* Interest on loans and discounts includes interest subsidies associated with effectively interest-free, unsecuredloans on which interest would later be reimbursed afterwards by local governments.
(Overview of the financial position of the consolidated fiscal year ended March 31, 2021)
As of March 31, 2021, total assets amounted to ¥5,921.9 billion, up ¥420.8 billion from the end of the previous
fiscal year, and net assets stood at ¥310.8 billion, a ¥16.4 billion increase from the end of the previous fiscal year.
With respect to major account balances, deposits increased by ¥341.2 billion from the end of the previous fiscal
year to ¥4,972.4 billion, loans and bills discounted increased by ¥165.6 billion from the end of the previous fiscal yearto ¥3,926.5 billion, and securities increased by ¥71.3 billion from the end of the previous fiscal year to ¥1,019.4 billion.
(Overview of cash flow for the consolidated fiscal year ended March 31, 2021)
During the fiscal year ended March 31, 2021, net cash provided by operating activities was ¥232.5 billion, duelargely to an inflow from net increase in deposits and borrowed money. Net cash used by investing activities was ¥15.3
billion, reflecting an inflow from sale and redemption of securities and an outflow for purchases of securities, etc. Net
cash used in financing activities was ¥2.0 billion, attributable primarily to payment of dividends. As a result, cash andcash equivalents at the end of the fiscal year ended March 31, 2021 were ¥753.4 billion, an increase of ¥215.2 billion
from the end of the previous fiscal year.

2(2) Projection
The forecast of the consolidated operating performance for the fiscal year ending March 31, 2022, is as follows.
Ordinary income of ¥15.0 billion
Profit attributable to owners of parent of ¥10.0 billion
The economic conditions in the period ahead are likely to be dictated significantly by the timing of COVID-19
subsiding, and there is a risk that the economic downturn will be lengthy particularly for those industries that are
directly and indirectly affected.
It is difficult to forecast how the COVID-19 situation will develop, and there is a possibility that the Group’s full-year
operating results and financial position for the fiscal year ending March 31, 2022 will be significantly affected.
The forecast presented above represents the judgment of management based on information currently available,
and may include uncertainties. Actual results, etc. may differ from the above forecast due to the change of businesscondition, etc.

(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 and relevant 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 stable dividends. In accordance with this policy, amedium-term target for total shareholder return ratio is set at 20% - 30%.
The Company will pay out an annual dividend of ¥60 per share of common stock (an interim dividend of ¥30 and a
year-end dividend of ¥30) for the fiscal year ended March 31, 2021. For First Series Class I preferred shares, inaccordance with the provisions of the Articles of Incorporation, an annual dividend of ¥250 per share (an interim
dividend of ¥125 and a year-end dividend of ¥125) will be paid. For Class II preferred shares, likewise in accordancewith the provisions of the Articles of Incorporation, an annual dividend of ¥29.272 per share (an interim dividend of¥14.636 and a year-end dividend of ¥14.636) will be paid.
For the fiscal year ending March 31, 2022, an annual dividend of ¥60 per share of common stock (an interim
dividend of ¥30 and a year-end dividend of ¥30) is scheduled to be paid based on the policy described above. For
First Series Class I preferred shares, in accordance with the provisions of the Articles of Incorporation, an annual
dividend of ¥252 per share (an interim dividend of ¥126 and a year-end dividend of ¥126) will be paid. For Class II
preferred shares, likewise in accordance with the provisions of the Articles of Incorporation, an annual dividend of¥31.272 per share (an interim dividend of ¥15.636 and a year-end dividend of ¥15.636) will be paid.

2. Overview of the Tokyo Kiraboshi Financial GroupAs of March 31, 2021, the Group is composed of the Company, which is a holding company, sixteen consolidated
subsidiaries including Kiraboshi Bank,Ltd. (hereinafter, “Kiraboshi Bank”) and Tokyo Kiraboshi Lease, Inc. (hereafter,“Tokyo Kiraboshi Lease”), and two affiliates (equity-method affiliates). It provides a wide range of financial services withfocus on banking business and encompassing diverse businesses such as leasing, credit card, securities andconsulting.
In the fiscal year ended March 31, 2021, Kiraboshi Securities Preparatory Co., Ltd. changed its name to “Kiraboshi
Life Design Securities Co., Ltd.” effective June 22, 2020, and commenced operation on August 17, 2020.
Effective October 30, 2020, Kiraboshi Digital Bank Preparatory Co., Ltd. was established as a wholly-owned
subsidiary of the Company.
Effective March 31, 2021, “Kiraboshi Insurance Agency CO., LTD.”, an insurance agency, was made an equitymethod affiliate of Kiraboshi Bank, a subsidiary of the Company, with the latter subscribing for the class shares issued
by the insurance agency.

3

The diagram on the following page illustrates the business portfolio, as described above.

4

(Note) 1. Kiraboshi Securities Preparatory Co., Ltd. changed its name to “Kiraboshi Life Design Securities Co., Ltd.”effective June 22, 2020, and commenced operation on August 17, 2020.
2. Effective August 31, 2020, “A&KC Mezzanine Finance No. 1 Investment Limited Partnership” was established
as a non-consolidated subsidiary. A&KC Mezzanine Finance No. 1 Investment Limited Partnership
3. Effective October 30, 2020, “Kiraboshi Digital Bank Preparatory Co., Ltd.” was established as a wholly-owned
subsidiary of the Tokyo Kiraboshi Financial Group, Inc.
4. Effective November 6, 2020, “Kiraboshi Capital Tokyo Sparkle Investment Limited Partnership” wasestablished as a non-consolidated subsidiary.
5. Effective March 8, 2021, “A&KC Medical No. 1 Investment Limited Partnership” was established as a nonconsolidated subsidiary.
6. Effective March 31, 2021, “Kiraboshi Insurance Agency CO., LTD.”, an insurance agency, was made anequity-method affiliate of Kiraboshi Bank,Ltd. with the latter subscribing for the class shares issued by the
insurance agency.
7. Effective April 1, 2021, Kiraboshi Business Service Co., Ltd. merged with Kiraboshi Credit Service Co., Ltd.
through an absorption-type merger.
8. Effective April 1, 2021, Kiraboshi Service Co., Ltd. changed its name to “Kiraboshi business office service,Inc.”

3. Basic Views on Selection of Accounting Standards
Over the near term, the Group will prepare its consolidated financial statements based on J-GAAP, because theGroup’s business activities are focused on Japan and to ensure that consolidated financial statements can becompared across time.
In terms of the application of International Financial Reporting Standards (IFRS), an appropriate response will bemade in consideration of circumstances in Japan and overseas.

5

4. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheets
Tokyo Kiraboshi Financial Group, Inc.
(¥ million)
As of March 31, 2020
AssetsCash and due from banks
Call loans and bills bought
Monetary claims bought
Trading account securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchange
Lease receivables and investment assets
Other assets
Tangible fixed assets
Buildings
Land
Leased assets
Construction in progress
Other tangible fixed assets
Gain on disposal of non-current assets
SoftwareLeased assets
Other tangible fixed assets
Net defined benefit assets
Deferred tax assets

538,902
2,513
74,1991,006
651
948,0423,760,834
5,593
17,622
93,27358,41917,11933,192
2,262
439
5,404
3,771
1,998
256
1,516
13,234
11,251
4,905(33,076)
5,501,145

Customers’ liabilities for acceptances and guarantees

Reserve for possible loan losses
Total assets

6

As of March 31, 2021

753,974－
68,935845
1,620
1,019,415
3,926,518
9,422
18,71462,99856,362
16,49933,192
2,022
6
4,641
6,629
4,101
271
2,257
24,0543,140
4,412(35,101)
5,921,945

Tokyo Kiraboshi Financial Group, Inc.
(¥ million)
As of March 31, 2020
Liabilities
Deposits
Negotiable certificates of deposit
Call money and bills soldPayables under securities lending transactions
Borrowed money
Foreign exchange
Bonds
Other liabilities
Reserve for employee bonuses
Provision for directors’ bonuses
Provision for stock compensation
Net defined benefit liabilities
Reserve for directors’ retirement benefits
Reserve for point card certificates
Provision for loss on interest repayments
Reserve for loss on dormant deposit repayments
Provision for loss on cancellation of system contracts

Provision for contingent loss
Reserves under special laws
Deferred tax liabilities
Acceptances and guarantees
Total liabilities
Net Assets
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Net unrealized gain on available-for-sale securities

Net deferred gains (losses) on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets

7

As of March 31, 2021

4,631,187
7,300
217,692
256,620
42,177232
4,200
37,291
1,637
183
139
65
23
40
8
1,318
935
659
－
60
4,905
5,206,683

4,972,473
9,500
59,632
271,382
241,372293
4,000
43,864
1,523
155
163
53
14
43
7
1,289
－
794
0
86
4,412
5,611,065

27,500150,684
114,641(814)
292,010
5,629
41
(242)
4
(3,038)2,394
56
294,4625,501,145

27,500150,677
117,514(742)
294,949
13,078
189
(242)
11
2,863
15,90030
310,880
5,921,945

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Tokyo Kiraboshi Financial Group, Inc.
(¥ million)
Year ended March 31, 2020

Year ended March 31, 2021

94,031
56,98944,108
11,940
38
299
602
156
16,880
6,762
13,241
87
13,15391,683
2,381
1,094
1
606

93,35258,751
46,384
11,422
4
384
556
150
14,940
4,093
15,41653
15,36285,127
1,252
734
1
87

584

172

76
7
9
3,045
1,621
55,814
28,821
11,17817,643
2,347
6,975
6,315
523
136
1,065
59
70

237
14
3
3,273
1,211
56,09823,291
7,858
15,432
8,224
0
0
－
－
124
97
－

935

－

－
8,256
3,861
(3,264)
597
7,659
2
7,657

27
8,099
1,551
2,387
3,938
4,161
－
4,161

Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans and bills boughtInterest on deposits with banks
Other interest income
Trust fees
Fees and commissions
Other operating income
Other ordinary income
Recoveries of written-off claim
OthersOrdinary expenses
Financing expenses
Interest on deposits
Interest on negotiable certificates of deposit
Interest on call money and bills soldInterest on payables under securities lendingtransactions
Interest on borrowed money
Interest on corporate bonds
Other interest expenses
Fees and commissions payments
Other operating expenses
General and administrative expenses
Other ordinary expenses
Provision of allowance for loan losses
Other ordinary expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Gain on step acquisitions
Gain on bargain purchase
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Provision for loss on cancellation of system
contracts
Loss on cancellation of system contracts
Profit before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

8

Consolidated Statements of Comprehensive Income
Tokyo Kiraboshi Financial Group, Inc.
(¥ million)
Year ended
March 31, 2020
ProfitOther comprehensive income
Net unrealized gain on available-for-sale securities

Net deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

9

Year ended
March 31, 2021
7,659
(4,088)(2,293)41(4)(1,788)4,161
13,455
7,397
148
7
5,902

(44)

－

3,571

17,616

3,611

17,616(40)－

(3) Consolidated Statements of Changes in Net Assets(Year ended March 31, 2020)
Tokyo Kiraboshi Financial Group, Inc.
(¥ million)
Shareholders’ equity
Common stock
Balance at beginning of theyear
Changes of items during thereporting period
Purchase of shares of
consolidated subsidiaries

Capital surplus

27,500Retained earnings

Treasury stock

Total shareholders’equity150,473

109,053

214

(0)

213

Dividends of surplus(2,068)(2,068)

Profit attributable to ownersof parent

7,657

7,657

Acquisition of treasury
stock
Disposition of treasurystock
Net changes of items otherthan shareholders’ equity
during the reporting period
Total changes of items during
the reporting period

(804)

(4)

Balance at end of period

286,223

(26)

(26)

15

11

－

210

5,587

(10)

5,787

27,500150,684

114,641(814)

292,010

Accumulated other comprehensive income
Net
Total
Subscription
unrealized Net deferred
Foreign
RemeasureRevaluation
accumulated rights togain ongains
currency
ments ofreserve forothersharesavailable-for- (losses) on
definedtranslation
landcomprehenhedges
saleadjustment benefit plans
sive income
securities

Balance at beginning of theyear
Changes of items during thereporting period
Purchase of shares of
consolidated subsidiaries

7,923

－

(242)

8

(1,250)6,44056

Noncontrollinginterests

Total net
assets404

293,124

213

Dividends of surplus(2,068)

Profit attributable to ownersof parent

7,657

Acquisition of treasury
stock
Disposition of treasurystock
Net changes of items otherthan shareholders’ equity
during the reporting period
Total changes of items during
the reporting period
Balance at end of period(26)
11(2,294)

41

－

(4)

(1,788)(4,045)－(404)(4,450)(2,294)

41

－

(4)

(1,788)(4,045)

－

(404)

1,337

5,629

41

(242)

4

(3,038)

2,394

56

－

294,46210

(Year ended March 31, 2021)
Tokyo Kiraboshi Financial Group, Inc.
(¥ million)
Shareholders’ equity
Common stock
Balance at beginning of theyear
Changes of items during thereporting period

Capital surplus

27,500Retained earnings

150,684

Total shareholders’equityTreasury stock

114,641(814)

292,010

Dividends of surplus(2,071)(2,071)

Profit attributable to ownersof parent

4,161

4,161

Acquisition of treasury
stock
Disposition of treasury
stock
Increase in retained
earnings due to addition ofequity-method affiliates
Increase in treasury stock
due to addition of equitymethod affiliates
Net changes of items otherthan shareholders’ equity
during the reporting period
Total changes of items during
the reporting period

(15)

(15)

87

80

(6)
782

Balance at end of period

782
(0)

(0)

－

(6)

2,873

71

2,938

27,500150,677

117,514(742)

294,949

Accumulated other comprehensive income
Net
Total
Subscription
Nonunrealized Net deferred
Foreign
RemeasureRevaluation
accumulated rights tocontrolling
gains
gain oncurrency
ments ofreserve forothersharesinterests
available-for- (losses) on
translation
definedlandcomprehensale
hedgesadjustment benefit plans
sive income
securities

Balance at beginning of theyear
Changes of items during thereporting period

5,629

41

(242)

4

(3,038)

2,394

56

－

Total net
assets294,462

Dividends of surplus(2,071)

Profit attributable to ownersof parent

4,161

Acquisition of treasury
stock
Disposition of treasury
stock
Increase in retained
earnings due to addition ofequity-method affiliates
Increase in treasury stock
due to addition of equitymethod affiliates
Net changes of items otherthan shareholders’ equity
during the reporting period
Total changes of items during
the reporting period
Balance at end of period

(15)
80
782
(0)
7,448

148

－

7

5,902

13,505(25)－

13,479

7,448

148

－

7

5,902

13,505(25)－

16,41813,078

189

(242)

11

2,863

15,90030－

310,88011

(4) Consolidated Statements of Cash Flows
Tokyo Kiraboshi Financial Group, Inc.
(¥ million)
Year ended
March 31, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Retirement benefit expenses
Gain on bargain purchase
Step acquisitions loss (gain)
Share profit of entities accounted for using equity method
Increase (decrease) in reserve for possible loan losses
Increase (decrease) in reserve for employee bonuses
Increase (decrease) in provision for directors’ bonuses
Increase (decrease) in provision for stock compensations
Decrease (increase) in net defined benefit assets
Increase (decrease) in net defined benefit liability
Increase (decrease) in reserve for directors’ retirement benefits
Increase (decrease) in reserve for point card certificates
Increase (decrease) in reserve for loss on interest repayments
Increase (decrease) in reserve for loss on dormant deposit
repayments
Increase (decrease) in provision for loss on cancellation ofsystem contracts
Increase (decrease) in reserve for contingent loss
Interest income
Financing expenses
Gain (loss) on securities
Net losses (gains) on money held in trust
Foreign exchange losses (gains)
Net loss (gain) on disposal of non-current assets
Net increase (decrease) in trading account 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 loans)
Net decrease (increase) in deposit (excluding deposit paid toBank of Japan)
Net (decrease) increase in call loans
Net increase (decrease) in call money
Net increase (decrease) in payables under securities lendingtransactions
Net decrease (increase) in foreign exchange (assets)
Net increase (decrease) in foreign exchange (liabilities)
Net decrease (increase) in lease receivables and investment
assetsIncrease (decrease) due to issuance and redemption of straightbonds
Net increase (decrease) in borrowed money from trust accountProceeds from fund management
Payments for finance
Other
Subtotal
Income taxes paid
Income taxes refund
Cash flows from operating activities

12

Year ended
March 31, 2021

8,256
3,958
70
1,307
(136)
(523)
(17)
6,404
(78)
24
57
893
(0)
(10)
1
(0)

8,099
4,820
－
－
－
－
(24)
2,025
(113)
(28)
23
(10,819)
(12)
(9)
3
(0)

(32)

(29)

935

(935)

3
(56,989)
2,381(3,087)48
2,262(6,255)(32)(70,843)
104,275(8,800)134(58,751)
1,252(5,446)(168)(9,003)97
160(165,683)
341,285
2,200(11,732)

199,195200

134(15,034)
104,363

7,777(158,059)(88,297)

14,761391(300)(3,829)61(1,880)(1,092)

2,200

(200)

(245)
59,334(2,715)(3,583)
26,774(1,744)403
25,433－55,154(1,724)14,007235,258(3,719)1,005
232,544

Tokyo Kiraboshi Financial Group, Inc.
(¥ million)
Year ended
March 31, 2020
Cash flows from investing activities
Purchase of securities
Proceeds from sales of securities
Proceeds from redemption of securities
Payments due to increase in money held in trust
Purchase of tangible fixed assets
Retirement of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of intangible fixed assets
Payment from changes in ownership interests in
subsidiaries that result in changes in scope of
consolidation
Purchase of shares in affiliates
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of subordinated borrowings
Cash dividends paid
Dividends paid to non-controlling interests
Purchase of treasury shares
Proceeds from sale of treasury stock
Proceeds from exercise of share options
Proceeds from exercise of performance-linked
stock-based compensation
Payments from changes in ownership interests in
subsidiaries that do not result in changes in scopeof consolidation
Repayments of lease obligations
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

13

Year ended
March 31, 2021

(279,044)
264,935
126,400(700)(1,840)(566)
11,285(1,210)(384,714)
214,154
168,458(800)(2,342)(753)
1(4,339)(1,057)－－
118,200(4,999)(15,335)(5,000)(2,069)
(4)
(72)
15
－

－
(2,071)
－
(15)
6
27

－

52

(64)

－

(83)
(7,277)(3)(2,003)1

0136,357
401,928
538,286

215,206
538,286
753,492

(5) Notes on Premise of Going Concern
Not applicable.

(6) Changes in significant subsidiaries during the current period
Not applicable.
Kiraboshi Digital Bank Preparatory Co., Ltd. was established as a wholly-owned subsidiary of the Company
effective October 30, 2020, and is included in the scope of consolidation from the fiscal year ended March 31,
2021. Note that this event does not constitute a change in specified subsidiaries. On the premise that approval
from relevant authorities will be obtained, the Preparatory Company will proceed with preparations for launching
operations of the Digital Bank during fiscal year 2021.
Effective March 31, 2021, “Kiraboshi Insurance Agency CO., LTD.”, an insurance agency, was made an equitymethod affiliate of Kiraboshi Bank,Ltd., a subsidiary of the Company, with the latter subscribing for the classshares issued by the insurance agency.

(7) Notes to Consolidated Financial Statements(Segment information, etc.)
1. Summary of reportable segments
The reportable segments of the Group are the business units for which the Group is able to obtainfinancial information separately for assessment of business results by the Management Committee, etc., andcomprise banking and leasing business segments, the performance of which are reviewed periodically.
In the banking business segment, the Group is engaged primarily in the principal banking operations ofdeposit services, loan services, trading account securities services, securities investment services, domestic
exchange services, foreign exchange services and trust services. In the leasing business segment, theGroup is engaged in leasing services as part of finance-related business. Operations not included in thereportable segments are recorded as an aggregate under “Other”.
2. Calculation method of ordinary income, profit, assets, liabilities and other items by reportable segment
Accounting treatment of reportable segments is the same as that applied in the preparation of theconsolidated financial statements.
Reportable segment income is based on ordinary income. Intersegment ordinary income is based ontransaction prices among third parties.

14

3. Information related to ordinary income, profit, assets, liabilities and other items
Consolidated fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(Millions of yen)
Reportable segments
Bankingbusiness

Leasingbusiness

Other

Total

Total

Ordinary income
Ordinary income fromexternal customers

82,527

10,741

93,268

1,884

95,152

Intersegment ordinary income

297

734

1,031

6,001

7,033

Total

82,824

11,476

94,3007,885

102,186

Segment income

9,899

263

10,163

2,269

12,432

Segment assets

5,903,466

31,0605,934,526

210,446

6,144,972

Segment liabilities

5,596,159

29,062

5,625,221

8,500

5,633,722

Depreciation

4,689

26

4,715

104

4,820

Interest income

60,04011

60,052

2,615

62,667

Interest expenses

1,281

98

1,379

17

1,396

－

0

0

－

0

－

0

0

－

0

－

－

－

5,953

5,953

5,871

520

6,391

2,350

8,742

Other items

Extraordinary income(Gain on disposal of noncurrent assets)
Investments in entities
accounted for using the equity
methodIncrease in tangible andintangible fixed assets(Note) 1．Ordinary income is presented instead of net sales which is generally used by non-financial companies.
2. “Other” represents business segments other than those of the reportable segments and include
consulting services, computer-related services, information provision services, and the credit cardbusiness.
4. Difference between total amount of reportable segments and the recorded amounts in the consolidated
financial statements, and the principal components of the difference (matters relating to adjustment ofdifference)(1) Total of ordinary income of reportable segments and ordinary income recognized in the consolidated
statement of income(Millions of yen)
Ordinary income

Year ended

Total of reportable segments

94,300Ordinary income categorized in “Other”

7,885

Purchase accounting adjustment(1,800)Elimination of inter-segment transactions(7,033)

Ordinary income in the consolidated
statement of income

93,352(Note) Ordinary income is presented instead of net sales which is generally used by non-financial companies.
Reconciliation is stated for the difference between reportable segment ordinary income and the ordinary
income recognized in the consolidated statement of income.

15

(2) Total reportable segment income and ordinary income recognized in the consolidated statement of income(Millions of yen)
IncomeFiscal year ended March 31, 2021

Total of reportable segments

10,163

Income in “Other”

2,269

Purchase accounting adjustment(1,617)

Elimination of inter-segment
transactions(2,590)Ordinary income in the consolidated
statement of income

8,224(3) Total reportable segment assets and assets recognized in the consolidated balance sheet(Millions of yen)
AssetsFiscal year ended March 31, 2021

Total of reportable segments

5,934,526

Assets in “Other”

210,446

Purchase accounting adjustment(7,729)Elimination of inter-segment
transactions(215,297)

Total assets in the consolidatedbalance sheet

5,921,945(4) Total reportable segment liabilities and liabilities recognized in the consolidated balance sheet(Millions of yen)
Liability

Fiscal year ended March 31, 2021

Total of reportable segments

5,625,221

Liabilities in “Other”

8,500

Purchase accounting adjustment(1,544)

Elimination of inter-segment
transactions(21,111)

Total liabilities in the consolidatedbalance sheet

5,611,065

16

(5) Total of other items of reportable segments and amounts of corresponding items recognized in the
consolidated financial statements(Millions of yen)Amounts in
Total of reportableconsolidated
Other
Adjustments
segments
financial
Other items
statements
Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended
March 31, 2021
March 31, 2021
March 31, 2021
March 31, 2021
Depreciation

4,715

104

－

4,820

Interest income

60,052

2,615(3,915)58,751

Interest expenses

1,379

17

(144)

1,252

0

－

－

0

0

－

－

0

－

5,953

－

5,953

6,391

2,350

(333)

8,409

Extraordinary income(Gain on disposal of noncurrent assets)
Investments in entities
accounted for using theequity method
Increase in tangible andintangible fixed assets17(Per Share Information)
Reporting period(Year ended March 31, 2021)
Net assets per share¥8,416.05

Profit attributable to owners of parent per
share¥128.87

Profit attributable to owners of parent per
share (diluted)¥63.93(Note) 1. The calculation basis for net asset amount per share is as follows.
Reporting period(Year ended March 31, 2021)
Total net assets(¥ million)

310,880

Amount deducted from total
net assets(¥ million)

55,153Paid-in amount of preferredstock(¥ million)

55,000Cash dividends on preferredstock(¥ million)

123

Subscription rights to shares(¥ million)30

Non-controlling interests(¥ million)－

Net asset amount for common
stock at the year-end(¥ million)

255,726

Number of shares of common
stock at the year-end used for
calculating net asset amount
per share

Thousandshares30,38518

(Note) 2. The following is the basis for calculating the amount of net income per share and the amount of diluted
net income per share for the reporting period.
Reporting period(Year ended March 31, 2021)
Profit attributable to owners of parent per
share
Profit attributable to owners ofparent(¥ million)

4,161

Amount not belonging tocommon stock(¥ million)

246

Cash dividends on preferredstock(¥ million)

246

Profit attributable to owners ofparent in relation to common
stock(¥ million)

3,915

Weighted-average shares ofcommon stock during theperiodThousandshares30,380

Profit attributable to owners of parent per
share (diluted)
Profit attributable to owners ofparent adjustment amount(¥ million)

246

Cash dividends on preferredstock(¥ million)

246

Thousandshares34,708Preferred stockThousandshares34,695

Subscription rights to shares

Thousandshares12

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－(Note) 3. The Company’s shares which are held by the trust in relation to the stock compensation plan andwhich are recorded as treasury shares under shareholders’ equity are, in the calculation of net assets
per share, included in the treasury shares which are excluded from the total number of issued sharesat fiscal year-end. In the calculation of profit attributable to owners of parent per share and diluted profit
attributable to owners of parent per share, the same is also included in treasury shares which are
excluded for calculating the weighted-average number of shares outstanding during the period.
The number of the said treasury shares at the end of the period which were excluded in calculating
net assets per share is 72,000 shares. The weighted-average number of the said treasury shares
outstanding during the period which were excluded in calculating profit attributable to owners of parent
per share and diluted profit attributable to owners of parent per share is 81,000 shares.

19

(Significant Subsequent Events)
Common Control Transactions, etc.
(Merger between consolidated subsidiaries)
1. Outline of the transaction(1) Name and business description of the parties to the business combination(Company surviving absorption-type merger)
Name: Kiraboshi Business Service Co., Ltd.
Business description: Email, bill collection, centralized administrative services(Company absorbed in absorption-type merger)
Name: Kiraboshi Credit Service Co., Ltd.
Business description: collection agency business(2) Date of business combination
April 1, 2021
(3) Legal form of the business combination
An absorption-type merger in which Kiraboshi Business Service Co., Ltd. (consolidated subsidiaryof the Company) is the surviving company and Kiraboshi Credit Service Co., Ltd. (consolidated
subsidiary of the Company) is the absorbed company.
(4) Name of the company after the combination
Kiraboshi Business Service Co., Ltd.
(5) Other matters relating to the outline of the transaction
The objective of the transaction is to make effective use of management resources throughconsolidation of the Group’s operation in incidental services by transferring the collection agency
business of Kiraboshi Credit Service Co., Ltd. to Kiraboshi Business Service Co., Ltd.
2. Outline of the accounting treatment applied
The transaction is treated as a transaction under common control in accordance with "AccountingStandard for Business Combination" and "Implementation Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures".
(Company split between consolidated subsidiaries)
1. Outline of the transaction(1) Name and business description of the relevant business
Name of the business: procurement and management of marketing and advertising products, etc.
conducted by Kiraboshi Service Co., Ltd., a consolidated subsidiary of the Company
Business description: procurement and management of marketing and advertising products, etc.
(2) Date of business combination
April 1, 2021
(3) Legal form of the business combination
A company split in which Kiraboshi Service Co., Ltd. (a consolidated subsidiary of the Company) is
the split company and Kiraboshi Business Service Co., Ltd. (a consolidated subsidiary of theCompany) is the successor company.
(4) Name of the company after the combination
Kiraboshi Business Service Co., Ltd. (a consolidated subsidiary of the Company)(5) Other matters relating to the outline of the transaction
The objective of the transaction is to make effective use of management resources throughconsolidation of the Group companies’ operation in incidental services such as account settlement anddata quantification/aggregation work.
2. Outline of the accounting treatment applied
The transaction is treated as a transaction under common control in accordance with "AccountingStandard for Business Combination" and "Implementation Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures".

20

(Reference)
Trust asset balance table(As of March 31, 2021)(Millions of yen)
Asset
Loans and bills discounted
Loans on deeds
Monetary claims

Value

Liability
2,770

Specified money in trust

2,877

2,770

Monetary claims in trust

14,124

13,979Composite trusts

24,494

Total

41,496

Other monetary claims

13,979Property, plant and equipment

23,527

Movables634

Real estate

22,892Other receivables
Other receivables
Cash and due from banks
Deposits

Value

0
0
1,219
1,219

Total

41,49621

5. Non-consolidated Financial Statements and Notes(1) Non-consolidated Balance Sheets
Tokyo Kiraboshi Financial Group, Inc.(Non-consolidated)(¥ million)
As of March 31, 2020
AssetsCurrent assets
Cash and due from banks
Accounts receivable - otherPrepaid expenses
Income taxes receivable
Suspense payments
Deposits paid
Total current assets
Non-current assets
Intangible fixed assets
Software in progress
Total intangible fixed assets
Investments and other assets
Shares of subsidiaries and associates
Deferred tax assets
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - other
Dividends payable
Income taxes
Deposits received
Suspense receipt
Reserve for employee bonuses
Provision for directors’ bonuses
Total current liabilities
Non-current liabilities
Provision for stock compensation
Total non-current liabilities
Total liabilities
Net Assets
Shareholders’ equity
Common stock
Capital surplus
Capital reserve
Other capital surplus
Total capital surplus
Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders’ equity
Subscription rights to shares
Total net assets
Total liabilities and net assets

22

As of March 31, 2021

1,362
10
19
1,005
0
2
2,400

1,583
10
21
488
7
6
2,117

－
－

1,008
1,008

196,74424
196,769
196,769
199,169

197,19430
197,224
198,233
200,350

31
55
23
6
0
28
14
160

506
55
21
10
0
40
36
670

11
11
172

24
24
695

27,50027,50056,219110,260
166,480

56,219110,254
166,473

5,775
5,775
(814)
198,940
56
198,997
199,169

6,393
6,393
(742)
199,62430
199,655
200,350

(2) Non-consolidated Interim Statements of Income
Tokyo Kiraboshi Financial Group, Inc. (Non-consolidated)(¥ million)
Year ended
March 31, 2020
Operating income
Dividends from subsidiaries and associates
Commissions from subsidiaries and associates
Other business revenue
Total operating income
Operating expenses
Selling, general and administrative expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Miscellaneous income
Total non-operating income
Non-operating expenses
Miscellaneous loss
Amortization of deferred organization expenses
Amortization of share issuance cost
Total non-operating expenses
Ordinary profit
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income

23Year ended
March 31, 2021

5,121
1,053
15
6,190

2,591
1,278
22
3,892

905
905
5,284

1,160
1,160
2,732

0
1
1

0
11
11

0
7
4
11
5,274
5,274
61
(13)
48
5,225

0
－
－
0
2,743
2,743
60
(5)
54
2,689

(3) Non-consolidated Statements of Changes in Net Assets
Year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
Tokyo Kiraboshi Financial Group, Inc. (Non-consolidated)(¥ million)
Shareholders’ equity
Capital surplus

Retained earnings
Subscription
rights tosharesTotal net
assets56

195,854

Capitalreserve

Other
capitalsurplusTotal
capitalsurplusOtherretainedearnings
Retainedearnings
brought
forward56,219110,264

166,484

2,618

2,618

Dividends of surplus(2,068)(2,068)(2,068)(2,068)Net income

5,225

5,225

5,225

5,225

(26)

(26)

(26)

15

11

11

Commonstock

Balance at beginning of theyear
Changes of items during thereporting period

Acquisition of treasury
stock
Disposition of treasurystock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the reporting period
Balance at end of period

27,500(4)

Total
retainedearnings(4)

Treasury
stock

Total
shareholders’equity(804)

195,797

－

－

－

－

(4)

(4)

3,157

3,157

(10)

3,142

－

3,142

27,50056,219110,260

166,480

5,775

5,775

(814)

198,940

56

198,997

Year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
Tokyo Kiraboshi Financial Group, Inc. (Non-consolidated)(¥ million)
Shareholders’ equity
Capital surplus

Retained earnings
Subscription
rights tosharesTotal net
assets56

198,997

Capitalreserve

Other
capitalsurplusTotal
capitalsurplusOtherretainedearnings
Retainedearnings
brought
forward56,219110,260

166,480

5,775

5,775

Dividends of surplus(2,071)(2,071)(2,071)(2,071)

Net income

2,689

2,689

2,689

2,689

(15)

(15)

(15)

87

80

80

Commonstock

Balance at beginning of theyear
Changes of items during thereporting period

Acquisition of treasury
stock
Disposition of treasurystock
Net changes of items otherthan shareholders’ equity
Total changes of items during
the reporting period
Balance at end of period

27,500(6)

Total
retainedearnings(6)

Treasury
stock

Total
shareholders’equity(814)

198,940

(25)

(25)

－

－

(6)

(6)

618

618

72

684

(25)

658

27,50056,219110,254

166,473

6,393

6,393

(742)

199,62430

199,655(4) Notes on Premise of Going Concern
Not applicable.

246. (Reference) Non-consolidated Financial Statements of Kiraboshi Bank,Ltd.
(1) Overview of Non-consolidated Financial Statements
May 12, 2021
Company name: Kiraboshi Bank,Ltd.
Representative: Hisanobu Watanabe, President
Responsible person for inquiries: Nobuyuki Yasuda, Director, Managing Executive Officer, General manager of Corporate
Planning Division
URL: https://www.kiraboshibank.co.jp
Telephone: +81-3-6447-5799
Note: Figures have been rounded down to the nearest million yen.
1.

Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2021
(From April 1, 2020 to March 31, 2021)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)

Ordinary income

Fiscal year ended March 31, 2021
Fiscal year ended March 31, 2020(¥ million)
82,134
83,737

Ordinary profit

%
(1.9)
10.4

Net income(¥ million)
8,833
4,756

%
85.7
6.4

(¥ million)
4,837
8,672

%
(44.2)
50.8

Total net assets

Net assets to total assets
ratio(2) Non-consolidated financial position
Total assets

Fiscal year ended March 31, 2021
Fiscal year ended March 31, 2020(¥ million)
5,902,261
5,491,038(¥ million)
297,863289,398%
5.0
5.2(Reference) Equity: Fiscal year ended March 31, 2021: ¥297,863 million
Fiscal year ended March 31, 2020: ¥289,398 million(Note) “Equity” is the value of total net assets at the end of the period, and “Net assets to total assets ratio” is calculatedby 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 (Financial Services Agency
Notification No. 19 of 2006).

25

(2) Non-consolidated Balance Sheets
Kiraboshi Bank,Ltd.
(¥ million)
As of March 31, 2020
AssetsCash and due from banks
Cash on handDue from banks
Call loans
Monetary claims bought
Trading account securities
Trading account Japanese government bonds
Trading account Municipal government bonds
Money held in trust
Securities
Japanese government bonds
Municipal government bonds
Corporate bonds
Corporate stocks
Other securities
Loans and bills discounted
Bills discounted
Loans on bills
Loans on deeds
Overdrafts
Foreign exchange
Due from foreign banks
Foreign bills of exchange bought
Foreign bills of exchange receivable
Other assets
Prepaid expenses
Accrued income
Initial margins of futures markets
Variation margins of futures markets
Financial derivatives
Cash collateral paid for financial instruments
Other assets
Tangible fixed assets
Buildings
Land
Leased assets
Construction in progress
Other tangible fixed assets
Intangible fixed assets
SoftwareLeased assets
Other intangible fixed assets
Prepaid pension cost
Deferred tax assets
Customers’ liabilities for acceptances andguarantees
Reserve for possible loan losses
Total assets

26

As of March 31, 2021

538,775
37,052501,722
2,513
74,170
1,006
162
843
651
949,175
253,787
53,989370,044
27,008244,346
3,769,814
30,831
178,758
3,229,813
330,411
5,593
3,287
242
2,063
81,176
535
3,238
212
425
1,802
1,791
73,16963,776
17,112
40,986
2,164
439
3,073
3,380
1,860
192
1,328
17,10910,212753,826
36,429717,397－
68,906
845
168
677
1,620
1,020,442
207,415
65,334
315,589
41,959390,1423,938,044
21,340145,008
3,461,200
310,494
9,422
7,476
115
1,830
47,355
515
4,936
1,003
218
1,088
2,990
36,602
62,247
16,491
40,986
1,918
6
2,845
4,513
3,376
214
922
19,196
4,825

4,905

4,412

(31,223)
5,491,038(33,400)
5,902,261

Kiraboshi Bank,Ltd.
(¥ million)
As of March 31, 2020
Liabilities
Deposits
Current deposits
Ordinary deposits
Savings deposits
Deposits at noticeTime deposits
Installment savings
Other deposits
Negotiable certificates of deposit
Call money
Payables under securities lending transactions
Borrowed money
Borrowings from other banks
Foreign exchange
Due to foreign banks
Foreign bills of exchange sold
Foreign bills of exchange payable
Other liabilities
Income taxes
Accrued expenses
Unearned income
Reserve for interest on installment savings
Variation margins of futures markets
Financial derivatives
Cash collateral received for financial instruments
Lease obligations
Asset retirement obligations
Other liabilities
Reserve for employee bonuses
Provision for directors’ bonuses
Provision for stock compensation
Reserve for point card certificates
Reserve for loss on dormant deposit repayments
Provision for loss on cancellation of system
contracts
Provision for contingent loss
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Net Assets
Common stock
Capital surplus
Capital reserve
Other capital surplus
Retained earnings
Earned reserve
Other retained earnings
General reserve
Retained earnings brought forward
Total shareholders’ equity
Net unrealized gain on available-for-sale securities
Net deferred gains (losses) on hedges
Revaluation reserve for land
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

27

As of March 31, 2021

4,649,594
229,938
2,468,971
32,82526,0301,770,147
54,983
66,697
10,710217,692
256,620
28,35928,359232
1
17
213
27,294
3,328
2,575
2,452
16
8
2,102
423
2,447
713
13,227
1,480
169
128
2
1,318

4,990,468
282,6532,904,433
32,414
20,478
1,631,321
49,08070,087
12,91059,632
271,382
230,399
230,399
293
1
48
243
29,656
649
2,144
2,440
11
7
2,826
328
2,235
1,045
17,967
1,361
119
138
2
1,289

935

－

659
1,535
4,905
5,201,639

794
1,535
4,412
5,604,397

43,734
166,173
32,922
133,250
71,1458,284
62,86018,10044,760281,053
10,07441(1,770)8,345
289,398
5,491,038

43,734
166,173
32,922
133,250
73,4028,800
64,601
18,10046,501
283,310
16,134189(1,770)14,552297,8635,902,261

(3) Non-consolidated Interim Statements of Income
Kiraboshi Bank,Ltd.
(¥ million)
Year ended March 31,
2020
Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans
Interest on deposits with banks
Other interest income
Trust fees
Fees and commissions
Fees and commissions on domestic and foreign exchange
Other fees and commissions
Other operating income
Gain on foreign exchange transactions
Gain on sale of bond
Other operating income
Other ordinary income
Recoveries of written-off claim
Gain on sale of stocks and other securities
Gain on money held in trust
Other ordinary income
Ordinary expenses
Financing expenses
Interest on deposits
Interest on negotiable certificates of deposit
Interest on call money
Interest on payables under securities lending transactions
Interest on borrowed money
Interest expenses on interest rate swaps
Other interest expenses
Fees and commissions payments
Fees and commissions on domestic and foreign exchange
Other fees and commissions
Other operating expenses
Loss on trading account securities transactions
Loss on sale of bondAmortization on bondExpenses on financial derivatives transaction
General and administrative expenses
Other ordinary expenses
Provision of allowance for loan losses
Write-off of loans
Loss on sale of stocks and other securities
Loss on devaluation of stocks and other securities
Loss on money held in trust
Other
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Provision for loss on cancellation of system contracts
Loss on cancellation of system contracts
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
28

83,73758,864
44,112
13,691
38
298
724
156
14,7873,790
10,996
7,694
678
7,015
－
2,233
83
1,425
－
724
78,980
2,382
1,096
2
606
584
0
0
92
3,802
901
2,900
1,304
5
720
71
506
54,25017,241
10,805
159
1,383
1,062
48
3,782
4,756
5,575
5,575
1,063
57
70
935
－
9,268
3,110
(2,514)595
8,672

Year ended March 31,
2021
82,13460,05946,395
12,601
4
383
675
150
12,640
3,494
9,146
4,293
1,508
2,180
605
4,989
51
4,521
168
247
73,300
1,280
735
1
87
172
179
3
99
3,954
787
3,167
1,196
3
110
578
503
53,59813,269
7,852
20
122
－
－
5,274
8,833
－
－
119
92
－
－
27
8,713
1,069
2,806
3,876
4,837