The Juroku Financial Group, Inc.
and Consolidated Subsidiaries
Consolidated Financial Statements
for the Year Ended March 31, 2023

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Balance Sheet
March 31, 2023

Millions of Yen
2023
2022
ASSETS:Cash and due from banks (Note 4)¥ 751,947
Call loans and bills bought
35,000
Trading securities (Notes 5 and 26)
84
Money held in trust (Note 6)
11,312
Securities (Notes 5, 7, 11, 12 and 26)
1,464,507
Loans and bills discounted (Notes 7, 12, 26 and 27)
4,695,448
Foreign exchanges (Notes 7 and 8)
7,027
Lease receivables and investments in leases (Notes 7 and 25)
53,512Other assets (Notes 7, 9, 12, 26 and 28)
103,728
Premises and equipment (Note 10)
57,370Goodwill
3,193
Intangible assets
4,099
Asset for retirement benefits for employees (Note 16)
13,195
Deferred tax assets (Note 24)
214
Customers' liabilities for acceptances andguarantees (Notes 7 and 11)
14,110Allowance for loan losses (Notes 3 and 26)(24,189 )Total Assets¥ 7,190,557

Thousands of
U.S. Dollars(Note 1)2023

¥ 2,135,695
115
11,612
1,459,223
4,521,824
8,861
54,544
114,829
58,313
3,646
3,758
14,220149$ 5,631,296
262,113629
84,715
10,967,625
35,163,993
52,625400,749
776,815429,641
23,912
30,697
98,817
1,603

14,352(25,809 )105,669(181,150 )¥ 8,375,332$ 53,849,749-2(Continued)

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Balance Sheet
March 31, 2023

Millions of Yen
2023
2022
LIABILITIES AND EQUITY:
Liabilities:
Deposits (Notes 12, 13 and 26)
Negotiable certificates of deposit (Note 26)
Payables under repurchase agreements(Notes 12 and 26)
Payables under securities lending transactions(Note 12)
Borrowed money (Notes 12, 14 and 26)
Foreign exchanges (Note 8)
Borrowed money from trust account(Note 12)
Other liabilities (Notes 15, 17, 25, 26 and 28)
Liability for retirement benefits for employees(Note 16)
Provision required under the Special Act
Deferred tax liabilities (Note 24)
Deferred tax liabilities for land revaluation surplus
Acceptances and guarantees (Note 11)

Thousands of
U.S. Dollars(Note 1)2023

¥ 6,266,981
13,000¥ 6,225,291
14,000$ 46,933,131
97,356

97,835

133,747

732,682

329,501
1,725

87,538
1,405,797
1,595

2,467,618
12,91838
55,581

62,488285
416,244

5,933
11
6,880
6,401
14,1106,172
815,332
6,408
14,35244,432
82
51,52447,937
105,669

6,797,996

7,972,728

50,909,878

36,00061,818251,974

36,00061,807180
238,135

269,602462,952
1,887,022(3,068 )(2,221 )(22,976 )

28,882
117
12,453548
388,724
3,837

49,18912,4683,341
398,899
3,705

216,296876
93,2604,1042,911,136
28,735

Total Equity

392,561

402,604

2,939,871

Total Liabilities and Equity¥ 7,190,557¥ 8,375,332$ 53,849,749

Total Liabilities
Commitments and Contingent Liabilities (Note 27)
Equity (Notes 18, 19 and 32):
Common stock: authorized, 80,000,000 sharesin 2023 and 2022; issued, 37,924,134 sharesin 2023 and 2022
Capital surplus
Stock acquisition rights
Retained earnings
Treasury stock—at cost, 1,343,278 shares in 2023
and 1,002,848 shares in 2022
Accumulated other comprehensive income:Unrealized gain on available-for-sale securities(Note 5)
Deferred gain on hedging instruments
Land revaluation surplus
Defined retirement benefit plans (Note 16)
Total
Noncontrolling interests

See notes to consolidated financial statements.

-3-

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statement of Income
Year Ended March 31, 2023

Millions of Yen
2023
2022

Thousands of
U.S. Dollars(Note 1)
2023

Income:Interest on:
Loans and discounts
Securities
Other
Trust fees
Fees and commissions
Other operating income (Note 20)
Other income (Note 21)¥ 38,150
13,9471,800
124,321
29,851
4,615¥ 38,333
14,1872,168
22,86932,156
7,654$ 285,704
104,448
13,4807
182,139
223,553
34,562

Total income (Note 31)

112,685

117,367

843,893

Expenses:
Interest on:
Deposits
Borrowings and re-discounts
Payables under repurchase agreements
Other
Fees and commissions
Other operating expenses (Note 5)
General and administrative expenses (Note 22)
Allowance for loan losses
Impairment loss on long-lived assets
Other expenses (Note 23)

165
277
2,308
19
5,574
32,89642,239
1,482
150
579

205
54
26
33
5,758
36,20744,560
2,807
1,072

1,236
2,074
17,285142
41,743
246,357
316,326
11,0991,123
4,336

Total expenses

85,68990,722641,721

Income before Income Taxes

26,996

26,645202,172

Income Taxes (Note 24):
Current
Deferred

7,058
1,178

7,237
1,721

52,857
8,822

8,236

8,958

61,67918,76017,687140,493

130

496

974

¥ 18,630¥ 17,191$ 139,519

Total Income Taxes
Net Income
Net Income Attributable to Noncontrolling Interests
Net Income Attributable to Owners of the Parent

Yen
Per Share of Common Stock (Notes 2.t and 30):
Basic net income
Diluted net income
Cash dividends applicable to the year—common stock
See notes to consolidated financial statements.
-4-¥ 505.78
505.44130.00U.S. Dollars¥ 460.45
459.62120.00

$3.79
3.79
0.97

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statement of Comprehensive Income
Year Ended March 31, 2023

Millions of Yen
2023
2022

Thousands of
U.S. Dollars(Note 1)2023

Net income¥ 18,760¥ 17,687$ 140,493

Other Comprehensive Income (Loss) (Note 29):
Unrealized loss on available-for-sale securities
Deferred gain (loss) on derivatives under hedge accounting
Defined retirement benefit plans(20,306 )117(2,793 )(10,271 )(259 )(652 )(152,071 )
876(20,916 )Total other comprehensive loss

(22,982 )(11,182 )(172,111 )Comprehensive Income (Loss)¥ (4,222 )¥ 6,505$ (31,618 )Total Comprehensive Income (Loss)
Attributable to:
Owners of the parent
Noncontrolling interests¥ (4,352 )130¥ 6,178327$ (32,592 )974

See notes to consolidated financial statements.

-5-

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statement of Changes in Equity
Year Ended March 31, 2023
Thousands

Balance at April 1, 2021
Changes due to sharetransfer, etc.
Purchase of shares of
consolidated subsidiaries
Sale of shares of
consolidated subsidiaries
Net income attributable toowners of the parent
Cash dividends, ¥105.00 per
share of common stock
Transfer of land revaluation
surplusPurchase of treasury stock
Disposal of treasury stock
Net change in the year
Balance at April 1, 2022
Net income attributable toowners of the parent
Cash dividends, ¥130.00 per
share of common stock
Transfer of land revaluation
surplusPurchase of treasury stock
Disposal of treasury stock
Net change in the year
Balance at March 31, 2023

Outstanding
Number of
Shares ofCommonStockCommonStockCapitalSurplus

Stock
Acquisition
RightsRetained
Earnings

Treasury
Stock

Millions of Yen
Accumulated Other Comprehensive Income
Unrealized
DeferredGain onGain onAvailableDerivatives
Land
Definedfor-sale
under Hedge Revaluation
Retirement
Securities
Accounting
SurplusBenefit Plans

37,373¥ 36,839¥ 53,396¥ 169¥ 224,571¥ (1,537 )¥ 59,291¥ 259¥ 12,766

-

(839)

435

-

-

404

-

-

-

-

7,971

-

-

-

-

-

-

6

-

-

-

-

-

-

-

17,191----(462 )
10
-

-

(1 )
-

36,921¥36,000-

Total

Noncontrolling
Interests

Total
Equity¥ 3,993¥ 389,747¥ 13,263¥ 403,010

-

-

-

-

-

-

-

-

7,971

-

7,971

-

-

-

-

6

-

6

-

-

-

-

-

17,191-

17,191(3,925 )

-

-

-

-

-

(3,925 )-(3,925 )

11

298
-

(1,116 )28-(10,102 )(259 )(298 )(652 )

298(1,116 )27(11,300 )(9,558 )298(1,116 )27(20,858 )¥61,807¥180¥238,135¥(2,221 )¥49,189¥-¥12,468¥3,341¥398,899¥3,705¥ 402,604---

18,630

-

-

-

-

-

18,630-18,630----(4,807)

-

-

-

-

-

(4,807 )-(4,807 )(461 )
121
-

-

11
-

(180 )

16-(1,115)
268-(20,307 )

117

(15 )

(2,793 )16(1,115 )279(23,178 )132

16(1,115 )279(23,046 )

36,581¥ 36,000¥ 61,818¥ 251,974¥ (3,068 )¥ 28,882¥ 117¥ 12,453¥ 548¥ 388,724¥ 3,837¥ 392,561

¥

-

-6-

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statement of Changes in Equity
Year Ended March 31, 2023

Balance at April 1, 2022
Net income attributable to ownersof the parent
Cash dividends, $0.97 per shareof common stock
Transfer of land revaluation surplus
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
Balance at March 31, 2023

Thousands of U.S. Dollars (Note 1)
Accumulated Other Comprehensive Income
Unrealized
DeferredGain onGain onDefinedAvailableDerivatives
Land
Retirement
Treasury
for-sale
under Hedge Revaluation
Benefit
Stock
Securities
Accounting
Surplus
Plans

CommonStockCapitalSurplus

Stock
Acquisition
RightsRetained
Earnings$ 269,602$ 462,870$1,348$ 1,783,382$ (16,633 )$368,374---

139,519

-

-

82
-

(1,348 )(35,999 )120-$ 269,602$ 462,952$ 1,887,022$-

Noncontrolling
Interests

Total
Equity-$ 93,372$ 25,021$ 2,987,336$ 27,747$ 3,015,083

-

-

-

-

139,519-

139,519(8,350 )
2,007-(152,077)

876(112 )(20,917 )(35,999 )120(8,350 )2,089(173,578 )

988(35,999 )120(8,350 )2,089(172,590 )$ (22,976 )$ 216,296

876$ 93,260

4,104$ 2,911,136$ 28,735$ 2,939,871

See notes to consolidated financial statements.

-7-

$

Total

$

$

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statement of Cash Flows
Year Ended March 31, 2023

OPERATING ACTIVITIES:
Income before income taxes
Adjustments for:
Income taxes—paid
Income taxes—refund
Depreciation
Impairment loss on long-lived assets
Interest income recognized in consolidated statements ofincomeInterest expense recognized in consolidated statements ofincomeNet loss on securities
Unrealized gain on derivatives
Net decrease in allowance for loan losses
Net increase in asset for retirement benefits for
employees
Net decrease in liability for retirement benefits for
employees
Net increase in provision required under the Special Act
Net increase in loans
Net increase in deposits
Net decrease in negotiable certificates of deposit
Net (decrease) increase in borrowed money (excluding
subordinated loans)
Net decrease in due from banks (excluding
cash equivalents)
Net increase in call loans and others
Net (decrease) increase in call money and others
Net decrease in money held in trust
Net (decrease) increase in payables under securities
lending transactions
Net decrease in lease receivables and investments
in leases
Net increase in borrowed money from trust accountInterest income—cash basis
Interest expense—cash basis
Other—net
Total adjustments
Net cash (used in) provided by operating
activities— (Forward)-8-¥

Millions of Yen
2023
2022

Thousands of
U.S. Dollars(Note 1)
2023

26,996$¥

26,645202,172(7,915 )
940
3,038
150

(10,532 )
42
3,362
-

(59,275 )
7,040
22,751
1,123(53,897 )(54,688 )(403,632 )

2,769
4,148
(959 )(1,620 )318
4,305(449 )(44 )

20,73731,064(7,182 )(12,132 )(3,027 )(2,764 )(22,669 )(174 )
3(173,623 )
41,689(1,000 )(25 )3(40,674 )
152,818(14,100 )(1,303 )22(1,300,255 )
312,207(7,489 )(1,076,296 )

938,646(8,060,331 )

440(35,000 )(35,913 )300

11,089
7,047
700

3,295
(262,113 )(268,951 )
2,247(87,538 )

57,866(655,568 )

1,032
38
54,232(2,697 )(25,324 )(1,396,204 )2,673
55,204(371 )(12,896 )1,097,530

7,729
285
406,141(20,198 )(189,650 )(10,456,107 )¥(1,369,208 ) ¥1,124,175$(10,253,935)

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statement of Cash Flows
Year Ended March 31, 2023
Thousands of
U.S. Dollars(Note 1)
2023

Millions of Yen
2023
2022
Net cash (used in) provided by operating activities—(Forward)¥(1,369,208 ) ¥1,124,175 $(10,253,935 )INVESTING ACTIVITIES:
Purchases of securities
Proceeds from sales of securities
Proceeds from maturities of securities
Purchases of premises and equipment
Purchases of intangible assets
Proceeds from sales of premises and equipment
Other—net(313,959)
236,427
71,868(1,003)(1,568)121(70)(513,552 )
489,717
109,124(1,691 )(1,674 )830(52 )(2,351,224 )
1,770,591
538,216(7,511 )(11,743 )906(525 )(8,184)82,702(61,290 )0(1,115)(4,807)

0(1,116 )(2,928 )(4,061 )0(8,350 )(35,999 )

-

988

-

(5,922)(7,117 )(44,349 )

5

9

37

NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS(1,383,309)

1,199,769(10,359,537 )CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

2,130,687

930,918

15,956,616

Net cash (used in) provided by investing
activities
FINANCING ACTIVITIES:
Proceeds from sales of treasury stock
Acquisition of treasury stock
Acquisition of treasury stock of subsidiaries
Dividends paid
Proceeds from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
ON CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS, END OF YEAR (Note 4)

See notes to consolidated financial statements.

-9-¥

747,378¥2,130,687 $ 5,597,079

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Year Ended March 31, 2023

1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with theprovisions set forth in the Japanese Financial Instruments and Exchange Act and its related
accounting regulations and the Enforcement Regulation for the Banking Law, and in accordance withaccounting principles generally accepted in Japan (Japanese GAAP), which are different in certain
respects as to the application and disclosure requirements of International Financial ReportingStandards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements
have been made to the consolidated financial statements issued domestically in order to present themin a form that is more familiar to readers outside Japan.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which
The Juroku Financial Group, Inc. (the "Company") is incorporated and operates. The translations ofJapanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers
outside Japan and have been made at the rate of ¥133.53 to $1, the approximate rate of exchange at
March 31, 2023. Such translations should not be construed as representations that the Japanese yenamounts could be converted into U.S. dollars at that or any other rate.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa.

Consolidation
The consolidated financial statements as of March 31, 2023, include the accounts of the Company
and its 10 significant subsidiaries, including Juroku Bank, Ltd.; Juroku Research Institute Co., Ltd.;
Juroku Card Co., Ltd.; Juroku Lease Co., Ltd.; Juroku Densan Digital Service Co., Ltd.;NOBUNAGA Capital Village Co., Ltd.; Juroku Business Service Co., Ltd.; Juroku Credit Guarantee
Co., Ltd.; Juroku Tokai Tokyo Securities Co., Ltd. ("Juroku TT Securities") and Kanda Machi
Okoshi Co., Ltd. (together, the "Group").
Due to the establishment of Kanda Machi Okoshi Co., Ltd., it is included in the scope of
consolidation from the fiscal year ended March 31, 2023.
Under the control concept, those companies in which the Company, directly or indirectly, is able toexercise control over operations are fully consolidated.
Investments in 10 unconsolidated subsidiaries are stated at cost. If the equity method of
accounting had been applied to the investments in these companies, the effect on theaccompanying consolidated financial statements would not be material.
The number of other companies that were not made affiliates even though the Company owned
20% or more but not more than 50% of the voting rights of such other companies on its own
account is two. Such companies are not considered to be affiliates because a non-consolidated
subsidiary that is engaged in investment business, etc. owns shares as part of business
transaction for the purpose of acquiring capital gains by investment and fostering, not for the
purpose of making them subsidiaries.
The excess of the cost of acquisition over the fair value of the net assets of an acquired subsidiaryat the date of acquisition is being amortized over a period of 20 years.
All significant intercompany balances and transactions have been eliminated in consolidation. All
material unrealized profits included in assets resulting from transactions within the Group havebeen eliminated in consolidation.
- 10 -

The balance sheet date for all consolidated subsidiaries is the end of March for each year, which isconsistent with the balance sheet date of the Group.
b.

Business Combinations
Business combinations are accounted for using the purchase method. Acquisition-related costs,
such as advisory fees or professional fees, are accounted for as expenses in the periods in which
the costs are incurred. If the initial accounting for a business combination is incomplete by the endof the reporting period in which the business combination occurs, an acquirer shall report in its
financial statements provisional amounts for the items for which the accounting is incomplete.
During the measurement period, which shall not exceed one year from the acquisition, theacquirer shall retrospectively adjust the provisional amounts recognized at the acquisition date toreflect new information obtained about facts and circumstances that existed as of the acquisition
date and that would have affected the measurement of the amounts recognized as of that date.
Such adjustments shall be recognized as if the accounting for the business combination had been
completed at the acquisition date. A parent's ownership interest in a subsidiary might change if
the parent purchases or sells ownership interests in its subsidiary. The carrying amount of
noncontrolling interests is adjusted to reflect the change in the parent's ownership interest in its
subsidiary while the parent retains its controlling interest in its subsidiary. Any difference between
the fair value of the consideration received or paid and the amount by which the noncontrollinginterests are adjusted is accounted for as capital surplus as long as the parent retains control overits subsidiary.

c.

Cash and Cash Equivalents
For the purpose of the consolidated statement of cash flows, cash and cash equivalents represent
cash and amounts due from the Bank of Japan.

d.

Trading Securities
Trading securities are stated at fair value and the related unrealized gains and losses are includedin earnings. The cost of trading securities sold is determined based on the moving-averagemethod.

e.

Securities
Securities other than trading securities are classified and accounted for, depending on
management's intent, as follows: (1) held-to-maturity debt securities, which are expected to beheld to maturity with the positive intent and ability to hold to maturity, are reported at amortizedcost and (2) available-for-sale securities, which are not classified as held-to-maturity, are reported
at fair value with unrealized gains and losses, net of applicable taxes, and are reported in a
separate component of equity. Non-marketable available-for-sale securities are stated at cost
determined by the moving-average method.
For declines in fair value that are not recoverable, securities are reduced to net realizable value by
a charge to income.
Securities included in money held in trust for trading purposes are stated at fair value, and therelated unrealized gains and losses are included in earnings. Securities included in money held in
trust for other purposes are accounted for by the same method as the above (2) available-for-salesecurities.

f.

Premises and Equipment
Premises and equipment are stated at cost less accumulated depreciation. Depreciation ofpremises and equipment of the Company, except for leased assets, is computed using thedeclining-balance method over the estimated useful lives of the assets.
The range of useful lives is principally from 15 to 50 years for buildings and from 4 to 20 years forother premises and equipment.
Depreciation of lease assets from finance lease transactions that do not deem to transfer
ownership of the leased property to the lessee is computed using the straight-line method over theleasing period. Residual values of lease assets are the guaranteed values determined in the lease
contracts or zero for assets without such guaranteed value.
- 11 -

Under certain conditions, such as exchanges of premises and equipment for similar kinds andsales and purchases resulting from expropriation, Japanese tax laws permit companies to defer
the profit arising from such transactions by reducing the cost of the assets acquired or byproviding a special reserve in the equity section. The deferred gain on premises and equipment
resulting from the reduction of the cost of the assets acquired, which is taxable for tax purposes in
the future, was ¥983 million ($7,362 thousand) and ¥983 million as of March 31, 2023 and 2022,
respectively.
g.

Long-Lived Assets
The Group reviews its long-lived assets for impairment whenever events or changes incircumstances indicate the carrying amount of an asset or asset group may not be recoverable.
An impairment loss is recognized if the carrying amount of an asset or asset group exceeds thesum of the undiscounted future cash flows expected to result from the continued use and eventual
disposition of the asset or asset group. The impairment loss would be measured as the amount bywhich the carrying amount of the asset exceeds its recoverable amount, which is the higher of the
discounted cash flows from the continued use and eventual disposition of the asset or the net
selling price at disposition.

h.

Land Revaluation
Under the "Law of Land Revaluation," the Company elected a one-time revaluation of its
consolidated subsidiary’s land operating as Bank to a value based on real estate appraisal
information as of March 31, 1998.
The resulting land revaluation surplus represents unrealized appreciation of land and is stated,
net of income taxes, as a component of equity. There was no effect on the consolidated statementof income. Continuous readjustment is not permitted unless the land value subsequently declines
significantly, such that the amount of the decline in value should be removed from the land
revaluation surplus account and related deferred tax liabilities.
The carrying amount of the land after the above one-time revaluation exceeded the market valueby ¥12,595 million ($94,323 thousand) and ¥14,043 million as of March 31, 2023 and 2022,
respectively.

i.

Intangible Assets
Amortization of intangible assets is calculated using the straight-line method.
Amortization cost of software for internal use is calculated using the straight-line method over theestimated useful life, principally, five years.

j.

Allowance for Loan Losses
The Company’s consolidated subsidiaries implemented a self-assessment system for its asset
quality. The quality of all loans is assessed by the related lending division with a subsequent audit
by the asset audit division in accordance with the Company's policies and rules for
self-assessment of asset quality.
The Company has established a credit rating system under which the customers are classified
into five categories such as “normal,” “caution,” “possible bankruptcy,” “virtual bankruptcy” and“legal bankruptcy.” The credit rating system is used for the self-assessment of asset quality.
With respect to loans to customers who are likely to become bankrupt or to be closely monitored
and caution loans with equivalent credit risk, which are classified within normal and caution loans(hereinafter, “loans to customers who are likely to become bankrupt or to be closely monitored,
etc.”) the allowance for loan losses is calculated based on the projected future losses for thefollowing three years, whilst for other loans, for the following one year. The projected future losses
are calculated by group (i.e., residential loans and non-residential loans) for loans to customers
who are likely to become bankrupt or to be closely monitored, etc. and other loans based on theloss ratios, which are based on the average of actual past loss ratios for the past three years andone year, respectively. For loans such as possible bankruptcy, the allowance for loan losses iscalculated based on an amount deemed necessary to cover possible losses on loans considering
the customer's solvency and other factors after the estimated fair value of the collateral real estate- 12 -

or guaranteed amount has been deducted. For loans such as virtual bankruptcy or legal
bankruptcy, the allowance for loan losses is calculated based upon the loan amount after theestimated fair value of the collateral real estate or guaranteed amount has been deducted.
For loans to possible bankruptcy customers and customers who are likely to become bankrupt or
to be closely monitored, the discounted cash flow method is applied to calculate the loss provision.
In these circumstances, the reserve is determined as the difference between the book value of theloan and the present value of future cash flows, which are discounted using the contractualinterest rate in the case that future cash flows of the principal and interest can be reasonably
estimated.
k.

Liability for Retirement Benefits
The Company has a contributory funded defined benefit pension plan, lump-sum payment
severance plan for employees and defined contribution pension plan, and certain subsidiaries
have lump-sum payment severance plans for employees and apply the simplified method to state
the liability based on the amount that should be paid if employees retired at the consolidatedbalance sheet date.
The liability for retirement benefits is based on projected benefit obligations and plan assets at theend of the fiscal year. The projected benefit obligations are attributed to periods on a benefit
formula basis. Past service costs are recognized in profit or loss as incurred over three years
within the expected average remaining service period of the employees. Actuarial gains andlosses that are yet to be recognized in profit or loss are recognized within equity (accumulated
other comprehensive income) after adjusting for tax effects and are recognized in profit or loss
over 10 years, no longer than the expected average remaining service period of the employees
starting in the fiscal year following the occurrence of such differences.
Retirement benefits to directors and Audit & Supervisory Board members of consolidated
subsidiaries are provided at the amount that would be required if all directors and Audit &Supervisory Board members retired at the consolidated balance sheet date based on internal
policies.

l.

Stock Options
The cost of stock options is measured based on fair value on the date of grant and is recognized
as compensation expense over the vesting period as consideration for receiving goods orservices. In the consolidated balance sheet, the stock options are presented as stock acquisitionrights as a separate component of equity until exercised.

m. Leases
In regard to finance leases, sales and cost of sales are recognized when lease payments arereceived.
All other leases are accounted for as operating leases.
n.

Provision for Losses from Reimbursement of Inactive Accounts
The provision for losses from reimbursement of inactive accounts, which are derecognized asliabilities under certain conditions, is provided for possible losses on future claims of withdrawal
based on historical reimbursement experience.

o.

Provision for Contingent Losses
The Company provides a provision for contingent losses not covered by other provisions in an
amount deemed necessary based on estimated losses in the future.

p.

Provision Required under the Special Act
The provision required under the Special Act is a financial instruments transaction liability reservefor consolidated subsidiaries engaged in financial instruments business and is provided toprepare for losses arising from operational incidents incurred in relation to trading and othersecurities transactions. The amount of the provision is calculated pursuant to the provisions ofArticle 46-5 of the Financial Instruments and Exchange Act and Article 175 of the Cabinet Office
Order on Financial Instruments Business.
- 13 -

q.

Income Taxes
The provision for current income taxes is computed based on the pretax income included in the
consolidated statement of income. The asset and liability approach is used to recognize deferred
tax assets and liabilities for the expected future tax consequences of temporary differences
between the carrying amounts and the tax bases of assets and liabilities. Deferred taxes aremeasured by applying currently enacted income tax rates to the temporary differences.

r.

Foreign Currency Transactions
Foreign currency assets and liabilities of the Group are translated into yen equivalents at theexchange rates prevailing at the fiscal year end.

s.

Derivatives and Hedging Activities
The Company uses a variety of derivative financial instruments.
Derivative financial instruments and foreign currency transactions are classified and accounted for
as follows: (1) all derivatives are recognized as either assets or liabilities and measured at fairvalue, and gains or losses on the derivative transactions are recognized in the consolidated
statement of income, and (2) for derivatives used for hedging purposes, if the derivatives qualify
for hedge accounting because of high correlation and effectiveness between the hedging
instruments and the hedged items, gains or losses on the derivatives are deferred until maturity of
the hedged transactions.
The Company applies the deferral method of hedge accounting to hedges of interest rate risk
associated with financial assets and liabilities in accordance with “Accounting and Auditing
Treatments on the Application of Accounting Standards for Financial Instruments in the Banking
Industry” (JICPA Industry-specific Committees Practical Guideline No. 24 issued by the JapaneseInstitute of Certified Public Accountants (JICPA). Under JICPA Industry-specific Committees
Practical Guideline No. 24, hedges to offset changes in fair value of fixed rate instruments (suchas securities) (fair value hedges) are applied by grouping hedging instruments and hedged itemsby their maturities. The assessment of hedge effectiveness is generally based on theconsideration of interest rate indices affecting the respective fair values of the group of hedging
instruments and hedged items.

t.

Per Share Information
Basic net income per share (“EPS”) is computed by dividing net income attributable to commonshareholders by the weighted-average number of common shares outstanding for the period,
retroactively adjusted for stock splits.
Diluted EPS reflects the potential dilution that could occur if securities were exercised orconverted into common stock. Diluted EPS of common stock assumes full conversion of theoutstanding convertible notes and bonds at the beginning of the year (or at the time of issuance)with an applicable adjustment for related interest expense, net of tax, and full exercise ofoutstanding warrants.
Cash dividends per share presented in the accompanying consolidated statement of income are
dividends applicable to the respective years including dividends to be paid after the end of theyear, not retroactively adjusted for a reverse stock split.

- 14 -

u.

Change in Accounting policy
Application of the Implementation Guidance on Accounting Standard for Fair Value
Measurement
The Company has applied the “Implementation Guidance on Accounting Standard for Fair
Value Measurement” (ASBJ Guidance No. 31, June 17, 2021, hereinafter referred to as “Fair
Value Measurement Standard Implementation Guidance”) from the beginning of the fiscal
year under review, and has decided to apply the new accounting policy set by the Fair Value
Measurement Standard Implementation Guidance in future years in accordance with thetransitional treatment set forth in Paragraph 27-2 of the Fair Value Measurement Standard
Implementation Guidance. The application has no impact on the Company’s consolidated
financial statements.
In addition, the disclosure on investment trusts related to the fair value information by levelwithin the fair value hierarchy under the notes on financial instruments pertaining to theprevious consolidated fiscal year are not stated in accordance with Paragraph 27-3 of the
Fair Value Measurement Standard Implementation Guidance.

v.

New Accounting Pronouncements“Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27 issued on
October 28, 2022)“Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No.
25 issued on October 28, 2022)“Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28 issued on
October 28, 2022)(1) Overview
Provisions on the classification of recording of income taxes, etc. when taxing othercomprehensive income and on the treatment of tax effects related to the sale of subsidiaryshares, etc. when the group corporate tax system is applied.
(2) Application date
The Company will apply the new guidance from the beginning of the year ending March 31,
2025.
(3) Impact of adoption
The Company is currently assessing the impact of adopting the above guidance on the
consolidated financial statements.

3.

SIGNIFICANT ACCOUNTING ESTIMATES
Allowance for Loan Losses(1) Amount recorded in the consolidated financial statements in the year ended March 31, 2023
and 2022
Allowance for loan losses:¥24,189 million ($181,150 thousand) and ¥25,809 million in the years ended March 31, 2023 and2022, respectively.

- 15 -

(2) Information contributing to the understanding of details related to significant accounting
estimates for certain items
1. Calculation method
The calculation method of allowance for loan losses is described in “Note 2.j, "Allowance for
Loan Losses.”
2. Primary assumptionsa) The performance forecast of debtors, including those who prepare management
improvement plans, used to determine the debtor classification, estimate future cash flows
related to the collection of the loan principal and interest, is prepared based on assumptions
derived from available information.
Specifically, management improvement plans were developed based on future performance
forecasts, which include future sales forecast, prospect of future expense reduction, andfuture cash flow prospect, among others. Accordingly, the reasonableness and the feasibilityof the plan are determined based on industry trends and individual management
improvement plans of the debtors.
b) The effect of the new coronavirus disease on the economy is expected to gradually subside
over the next consolidated fiscal year considering the current government policy. Although
the extent of the effect is expected to vary by each debtor, the determination of the debtor
classification and estimate of future cash flows related to the collection of the loan principal
and interest are based on the assumption that the credit risk for loans and bills discounted
originating from the Company’s consolidated subsidiaries will be affected within the range ofthe above assumptions. The above assumption has been changed from the one in theprevious fiscal year end, which stated that the effect of the spread of the new coronavirus
disease is expected to continue during the current fiscal year.
c) For loans other than those for which the discounted cash flow method is applied, it isassumed that “normal” loans will incur approximately the same amount of losses as thosefrom previous years, “caution” loans will incur approximately the same amount of losses as
those from previous years and loans to customers who are likely to become bankrupt or to
be closely monitored, which are classified within normal and caution loans, will incur
approximately the same amount of losses as those from previous years.
3. Impact on the consolidated financial statements for the next fiscal year
If the assumptions used in the initial estimate changes due to changes in the external
environment, including the situation of the spread of the new coronavirus disease, or theinternal environment of the debtor, among others, there is a possibility that the amount ofallowance will increase or decrease due to changes in the debtor classification, fluctuationsof cash flow estimates or the occurrence of circumstances in which actual bad debt losses
differ from the initial assumption, which may result in a significant impact on the consolidated
financial statements.

- 16 -

4.

CASH AND DUE FROM BANKS
Cash and due from banks as of March 31, 2023 and 2022, consisted of the following:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Cash
Due from banks¥ 55,027
696,920¥ 61,604
2,074,091$ 412,095
5,219,201

Total¥ 751,947¥2,135,695$ 5,631,296

A reconciliation between the cash and due from banks in the consolidated balance sheet and the cash
and cash equivalents in the consolidated statement of cash flows for the years ended March 31, 2023
and 2022, was as follows:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Cash and due from banks
Due from banks other than the Bank of Japan¥ 751,947(4,569 )¥ 2,135,695(5,008 )$ 5,631,296(34,218 )Cash and cash equivalents¥ 747,378¥ 2,130,687$ 5,597,078- 17 -

5. TRADING SECURITIES AND SECURITIES
Trading securities as of March 31, 2023 and 2022, consisted of the following:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Japanese government bonds
Japanese local government bonds

¥ 67
17

¥ 87
28

$

502
127

Total

¥ 84

¥ 115

$ 629

The Company records net valuation gains and losses as other operating income and expenses,
respectively. For the years ended March 31, 2023 and 2022, the Company recorded net valuation
losses of ¥2 million ($15 thousand) and ¥2 million, respectively.
Securities as of March 31, 2023 and 2022, consisted of the following:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Equity securities
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Foreign bonds
Investment trust
Other securities¥ 133,372
175,682
527,523
323,856
165,164
122,908
16,002¥ 138,421
204,739
549,054273,266
166,971
110,535
16,237$

998,817
1,315,674
3,950,595
2,425,343
1,236,906
920,452
119,838

Total¥ 1,464,507¥ 1,459,223$10,967,625

Unsecured loaned securities which borrowers have the right to sell or pledge in the amount of ¥45,422
million ($340,163 thousand) and ¥62,738 million as of March 31, 2023 and 2022, were included inJapanese government bonds, respectively.
Information regarding available-for-sale and held-to-maturity securities as of March 31, 2023 and2022, was as follows:

March 31, 2023
Securities classified as:
Available-for-sale:
Equity securities
Debt securities
Foreign bonds
Investment trust
Other
Held-to-maturity—debt securities

Cost¥ 48,637
985,899
175,527
133,681
58,060- 18 -

Millions of Yen
Unrealized Unrealized
Gains
Losses¥ 79,880
564
229
1,132
2
279

¥ 1,136
17,463
10,592
11,905
187

Fair
Value

¥ 127,381
969,000
165,164
122,9082
58,152

March 31, 2022

Cost

Securities classified as:
Available-for-sale:
Equity securities
Debt securities
Foreign bonds
Investment trust
Other
Held-to-maturity—debt securities¥ 45,695
971,548
173,422
113,677
62,795

March 31, 2023
Securities classified as:
Available-for-sale:
Equity securities
Debt securities
Foreign bonds
Investment trust
Other
Held-to-maturity—debt securities

Millions of Yen
Unrealized Unrealized
Gains
Losses¥ 1,465
8,516
6,757
4,288
216

Thousands of U.S. Dollars
Unrealized Unrealized
Gains
LossesCost$¥ 88,138
1,232
305
1,146
2
281

364,240
7,383,352
1,314,514
1,001,131
434,809$ 598,217
4,224
1,715
8,477
15
2,089

$ 8,507
130,780
79,32389,156
1,400

Fair
Value

¥ 132,368
964,264
166,970
110,5352
62,860Fair
Value$ 953,950
7,256,796
1,236,906
920,45215
435,498

Proceeds from sales of available-for-sale securities for the year ended March 31, 2023 and 2022,
consisted of the following:

March 31, 2023

Proceeds

Millions of Yen
Realized
Gains

Equity securities
Debt securities:
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Foreign bonds
Other:
Investment trust
Other securities¥ 15,848¥ 3,868

24,05863,2301,001
86,284

338
173
1
0

507
1
6,988

-

-

-

Total

¥ 190,421¥ 4,380¥ 7,602- 19 -

Realized
Losses¥106

March 31, 2022

Proceeds

Millions of Yen
Realized
Gains

Equity securities
Debt securities:
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Foreign bonds
Other:
Investment trust
Other securities¥ 33,305¥ 6,643

43,318
16,13743,612
255,253

196
34
26
957

151
29
10,776

84,674
20

875
13

1,345
-

Total

¥ 476,319¥ 8,744¥12,498

March 31, 2023

Thousands of U.S. Dollars
Realized
Realized
Proceeds
Gains
LossesRealized
Losses¥Equity securities
Debt securities:
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Foreign bonds
Other:
Investment trust
Other securities$ 118,685$ 28,967

180,169
473,527
7,496
646,177

2,531
1,296
8
0

3,797
7
52,333

-

-

-

Total

$1,426,054$ 32,802$ 56,931- 20 -

$

197

794

In addition, held-to-maturity securities amounting to ¥221 million ($1,655 thousand) and 21 million
were reclassified as available-for-sale securities due to a decline in the issuer's credit worthiness asof March 31, 2023 and 2022, respectively. The effect of these reclassifications on the accompanying
consolidated financial statements was immaterial.
Securities other than trading securities (excluding those securities that do not have a market price andinvestment in partnerships) whose fair value significantly declined below the acquisition cost and isconsidered not likely to be recovered are written down to their respective fair value, which is recorded
as the carrying amount on the consolidated balance sheet.
The fair value is deemed to have significantly declined if the year-end fair value declined by 30% ormore from the acquisition cost for securities issued by bankrupt borrowers, virtually bankrupt
borrowers, potentially bankrupt borrowers, and borrowers who are likely to become bankrupt or to beclosely monitored, and if the fair value declined by 50% or more from the acquisition cost for securities
issued by normal borrowers.
The impairment loss on available-for-sale equity securities for the year ended March 31, 2023, was¥127 million ($951 thousand), which consisted of ¥102 million ($764 thousand) of equity securitiesand ¥25 million ($187 thousand) of debt securities.
The impairment loss on available-for-sale equity securities for the year ended March 31, 2022, was¥33 million, which consisted of ¥17 million of equity securities and ¥16 million of debt securities.
Unrealized gain on available-for-sale securities as of March 31, 2023 and 2022, consisted of thefollowing:

Millions of Yen
2023
2022
Unrealized gain before deferred tax on:
Available-for-sale securities
Money held in trust—other
Deferred tax liabilities
Unrealized gain on available-for-sale securities
before interest adjustments
Noncontrolling interests
Unrealized gain on available-for-sale securities

Thousands of
U.S. Dollars
2023¥ 41,049
12(12,177)¥ 69,914
12(20,736 )$ 307,414
90(91,193 )

28,884(2)

49,190(1 )

216,311(15 )¥ 28,882¥ 49,189$ 216,296

Unrealized gain before deferred tax on available-for-sale securities includes ¥339 million ($2,539
thousand) and ¥490 million of revaluation gain on available-for-sale securities as of March 31, 2023
and 2022, which are held by an investment limited partnership and similar groups.
Investments in and advances to subsidiaries and associated companies as of March 31, 2023 and2022, were ¥1,115 million ($8,350 thousand) and ¥840 million, respectively.

- 21 -

6. MONEY HELD IN TRUSTInformation regarding money held in trust for trading purposes as of March 31, 2023 and 2022, was asfollows:
Carrying AmountThousands ofMillions of Yen
U.S. Dollars
2023
2022
2023
Money held in trust classified as trading purpose
Money held in trust—other¥ 6,000
5,312¥ 6,000
5,612$ 44,934
39,781

Total¥11,312¥11,612$ 84,715- 22 -

7. LOANS AND BILLS DISCOUNTED
Loans and bills discounted as of March 31, 2023 and 2022, consisted of the following:

Millions of Yen
2023
2022
Bills discounted
Loans on bills
Loans on deeds
Overdrafts
Others¥12,61889,9924,233,821
352,447
6,570

Total

¥ 4,695,448¥

Thousands of
U.S. Dollars
2022

12,02688,196
4,078,798
337,839
4,965$

94,496
673,946
31,706,890
2,639,459
49,202¥ 4,521,824$35,163,993

Loans under the Banking Act and the Act on Emergency Measures for the Revitalization of Financial
Functions are as follows: Loans are corporate bonds in “Securities” in the consolidated balance sheet(guaranteed for all or part of the redemption of the principal and payment of interest, and the issuanceof such bonds is limited to private placement of securities (Article 2, Paragraph 3 of the Financial
Instruments and Exchange Act)), loans and bills discounted, foreign exchange, accrued interest andadvance payments in “Other Assets”, etc., as well as securities recorded in each account, such as
customers' liabilities for acceptances and guarantee, and securities (limited to those under use leases
or lease agreements) in the case of lending of securities that are to be noted.

Millions of Yen
2023
2022
Loans under bankruptcy/rehabilitation or similar
proceedings
Doubtful loans
Loans requiring management
Accruing loans past due three months or more
Restructured loans
Normal loans
Total

¥

13,19552,316
2,121
113
2,008
4,786,599¥ 4,854,231¥

12,28856,831
2,262
19
2,243
4,613,945¥ 4,685,326

Thousands of
U.S. Dollars
2023$

98,817391,792
15,884846
15,03835,846,619$36,353,112“Loans under bankruptcy/rehabilitation or similar proceedings” are loans against borrowers who havefallen into bankruptcy due to reasons such as the commencement of bankruptcy proceedings, thecommencement of rehabilitation proceedings, or the application for the commencement of
rehabilitation proceedings, and the commencement of rehabilitation proceedings, as well as similarloans.
“Doubtful loans” are claims in which the debtor has not yet reached a state of bankruptcy, but whose
financial position and operating results have deteriorated and there is a high possibility that the
principal of the receivables and interest cannot be collected in accordance with the contract. Loans
under bankruptcy/rehabilitation or similar proceedings are excluded from doubtful loans.
“Accruing loans past due three months or more” are defined as loans and bills discounted for whichprincipal or interest is past due more than three months from the date following the prescribedpayment date. Loans under bankruptcy/rehabilitation or similar proceedings and doubtful loans are
excluded from accruing loans past due three months or more.

- 23 -

“Restructured loans” are defined as loans and bills discounted in which the Company is providing
financial support to a borrower by a reduction of interest rates, deferral of interest payments, extensionof maturity dates, or reduction of the face or maturity amount of the debt or accrued interest. Loans
under bankruptcy/rehabilitation or similar proceedings, doubtful loans and accruing loans past due
three months or more are excluded from restructured loans.
“Normal loans” are those that do not have any particular problems with the financial position andoperating results of the borrower and classified other than loans under bankruptcy/rehabilitation orsimilar proceedings, doubtful loans, accruing loans past due three months or more and restructuredloans.
Bills discounted are accounted for as financing transactions in accordance with "Accounting and
Auditing Treatments on the Application of Accounting Standards for Financial Instruments in the
Banking Industry" (JICPA Industry-specific Committees Practical Guideline No. 24) issued by theJapanese Institute of Certified Public Accountants. The Bank has rights to sell or pledge accepted
commercial bills discounted and foreign bills of exchange bought without restrictions. The total fairvalue of commercial bills discounted and foreign bills of exchange bought included in foreignexchanges as of March 31, 2023 and 2022, were ¥12,977 million ($97,184 thousand) and ¥12,363
million, respectively.

- 24 -

8.

FOREIGN EXCHANGES
Foreign exchanges as of March 31, 2023 and 2022, consisted of the following:

Millions of Yen
2023
2022

9.

Thousands of
U.S. Dollars
2023

Assets:Due from foreign correspondent accountForeign bills of exchange bought
Foreign bills of exchange receivable¥ 6,052359
616¥ 7,952337
572$ 45,323
2,689
4,613

Total

¥ 7,027¥ 8,861$ 52,625

Liabilities:
Due to foreign correspondent accountForeign bills of exchange payable¥ 1,366359¥ 1,165430$ 10,230
2,688

Total

¥ 1,725¥ 1,595$ 12,918

OTHER ASSETS
Other assets as of March 31, 2023 and 2022, consisted of the following:

Millions of Yen
2023
2022

10.

Thousands of
U.S. Dollars
2023

Accrued income
Accounts receivable
Installment receivables
Derivative assets
Other

¥

4,759
12,54718,047
6,372
62,003¥ 4,338
11,016
18,256
6,995
74,224$35,64093,964135,153
47,720464,338

Total¥103,728¥114,829$ 776,815

PREMISES AND EQUIPMENT
Premises and equipment as of March 31, 2023 and 2022, consisted of the following:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Land
Building
Construction in progress
Other¥ 43,399
9,949
4,022

¥ 43,437
10,5763
4,297$ 325,013
74,50830,120Total¥ 57,370¥ 58,313$ 429,641

The accumulated depreciation of premises and equipment as of March 31, 2023 and 2022 amounted
to ¥63,276 million ($473,871 thousand) and ¥62,558 million, respectively.

- 25 -

11.

CUSTOMERS' LIABILITIES FOR ACCEPTANCES AND GUARANTEESAll contingent liabilities arising from acceptances and guarantees are reflected in acceptances andguarantees. As a contra account, the customers' liabilities for acceptances and guarantees arepresented as assets, representing the Company's right of indemnity from applicants.
The Enforcement Ordinance of the Banking Law was revised on April 17, 2007, and effective from thefiscal years beginning on and after April 1, 2006. The Company offsets customer's liabilities for
acceptance and guarantees with acceptance and guarantees of ¥58,286 million ($436,501 thousand)and ¥62,847 million arising from guarantees of private placement securities as of March 31, 2023 and2022, respectively.

12.

ASSETS PLEDGED
Assets pledged as collateral and their relevant liabilities as of March 31, 2023 and 2022, were as
follows:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Assets pledged as collateral:
Securities
Loans and bills discounted
Other assets¥ 406,713
1,110,166
110¥

884,605
1,187,313
94$ 3,045,855
8,313,982
824

Total

¥ 1,516,989¥ 2,072,012$11,360,661

¥

¥

$

Relevant liabilities to above assets:
Deposits
Payables under repurchase agreements
Payables under securities lending transactions
Borrowed money
Total

93,297
97,835
311,440¥ 502,572

105,140
133,747
87,5381,384,230¥ 1,710,655

698,697732,682
2,332,359$ 3,763,738

Additionally, initial margins of futures markets, cash collateral received for financial instruments
liabilities, guarantee deposits and initial margins of Central Counterparty included in other assets wereas follows:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Initial margins of future markets
Cash collateral received for financial
instruments liabilities
Guarantee deposits
Initial margins of Central Counterparty¥ 3,600¥ 2,215

5,553
1,862
35,332

3,489
1,884
36,34541,586
13,945
264,600

Total¥ 46,347¥ 43,933$ 347,091- 26 -$

26,96013.

DEPOSITS
Deposits as of March 31, 2023 and 2022, consisted of the following:

Millions of Yen
2023
2022

14.

Thousands of
U.S. Dollars
2023

Current deposits
Ordinary deposits
Deposits at notice
Savings deposits
Time deposits
Other deposits¥ 433,825
3,821,036
53,766
98,617
1,796,513
63,224¥ 442,580
3,673,361
48,122
99,7901,892,701
68,737$ 3,248,895
28,615,562
402,651
738,538
13,454,003
473,482

Total¥ 6,266,981¥ 6,225,291$46,933,131

BORROWED MONEY AND LEASE OBLIGATION
Borrowed money and lease obligation as of March 31, 2023 and 2022, consisted of the following:

Millions of Yen
2023
2022
Borrowings due serially to October 2027
with weighted-average interest rates of
0.09% in 2023 and 0.00% in 2022
Lease obligation¥ 329,501-¥1,405,797-

Thousands of
U.S. Dollars
2023$ 2,467,618-

Weighted-average interest rates of lease obligation are not represented because the lease obligation
is disclosed on the balance sheet without deducting the interest portion, which is included in theamount of the lease obligation.
Annual maturities of borrowings as of March 31, 2023 were as follows:
As of March 31, 2023
Year Ending
March 31

Millions of Yen

Thousands of
U.S. Dollars

2024
2025
2026
2027
2028
2029 and thereafter¥ 223,832
63,577
2,505
39,297290-$ 1,676,268
476,125
18,760294,293
2,172
-

Total

¥ 329,501$ 2,467,618

There were no lease obligations as of March 31, 2023 and 2022, respectively.

- 27 -

15.

OTHER LIABILITIESOther liabilities as of March 31, 2023 and 2022, consisted of the following:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Domestic exchange settlement account, credit*
Income taxes payable
Accrued expenses
Deferred income
Derivative liabilities
Accounts payable
Other

¥

192
3,388
1,197
16,9689,770
10,316
13,750

¥

158
3,005
1,168
17,496
10,674
7,382
22,605$

1,438
25,3738,964
127,073
73,167
77,256
102,973

Total¥ 55,581¥ 62,488$ 416,244* The domestic exchange settlement account consisted of outstanding remittance bills from otherbanks and/or collection bills for which the Company has received notices for payment from otherbanks, which have not been settled.

- 28 -

16.

RETIREMENT AND PENSION PLANS
The consolidated subsidiary engaged in banking business (the “Bank”), has a contributory funded
defined benefit pension plan, lump-sum payment severance plan for employees and defined
contribution pension plan. The Bank contributed certain assets to the employee retirement benefit trust
for its contributory funded defined benefit pension plan and the assets in this trust are qualified as plan
assets. Certain subsidiaries other than above have lump-sum payment severance plans for
employees and apply the simplified method to state the liability based on the amount that would be
paid if employees retired at the consolidated balance sheet date.
(1) The changes in defined benefit obligation for the years ended March 31, 2023 and 2022, were as
follows:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Balance at beginning of year
Current service cost
Interest cost
Actuarial losses
Benefits paid

¥ 41,350
1,405
139
23
(2,344 )¥ 41,803
1,491
141
99
(2,184 )$ 309,668
10,522
1,041
172(17,554 )Balance at end of year

¥ 40,573¥ 41,350$ 303,849(2) The changes in plan assets for the years ended March 31, 2023 and 2022, were as follows:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Balance at beginning of year
Expected return on plan assets
Actuarial (losses) gains
Contributions from the employer
Benefits paid

¥ 49,398
1,481(2,019 )668(1,693 )¥ 47,992
1,440
919
695
(1,648 )$ 369,939
11,091(15,120 )5,003(12,679 )Balance at end of year

¥ 47,835¥ 49,398$ 358,234(3) Reconciliation between the liability recorded in the consolidated balance sheet and the balancesof defined benefit obligation and plan assets as of March 31, 2023 and 2022, was as follows:

Millions of Yen
2023
2022
Funded defined benefit obligation
Plan assets

Thousands of
U.S. Dollars
2023

Unfunded defined benefit obligation¥ 34,641(47,835 )(13,194 )5,932¥ 35,178(49,398 )(14,220 )6,172$ 259,425(358,234 )(98,809 )44,424

Net asset arising from defined benefit obligation¥ (7,262 )¥ (8,048 )$- 29 -(54,385 )Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Liability for retirement benefits for employees
Asset for retirement benefits for employees¥ 5,933(13,195)¥ 6,172(14,220)$

44,432(98,817 )Net asset arising from defined benefit obligation¥ (7,262)¥ (8,048 )$(54,385 )(4) The components of net periodic benefit costs for the years ended March 31, 2023 and 2022, wereas follows:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Service cost
Interest cost
Expected return on plan assets
Recognized actuarial gains
Past service cost

¥ 1,405139(1,481 )(475 )(1,470 )¥ 1,491
141(1,440 )(282 )(1,469 )$

10,522
1,041(11,091 )(3,557 )(11,009 )Net periodic benefit costs¥ (1,882 )¥ (1,559 )$(14,094 )(5) Amounts recognized in other comprehensive income (before income tax effect) in respect ofdefined retirement benefit plans for the years ended March 31, 2023 and 2022, were as follows:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Past service cost
Actuarial (losses) gains¥ (1,470 )(2,516 )¥ (1,469 )539$(11,009 )(18,842 )Total¥ (3,986 )¥ (930 )$(29,851 )(6) Amounts recognized in accumulated other comprehensive income (before income tax effect) in
respect of defined retirement benefit plans as of March 31, 2023 and 2022, were as follows:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Unrecognized past service cost
Unrecognized actuarial gains¥(367 )(414 )¥ (1,836)(2,931)$(2,748 )(3,101 )Total¥(781 )¥ (4,767)$(5,849 )- 30 -

(7) Plan assets(a) Components of plan assets
Plan assets consisted of the following:
2023

2022

Debt investments
Equity investments
General account for life insurance
Others

26%
42
18
14

26 %
44
17
13

Total

100 %

100 %

Note: The retirement benefit trust that contributed to the pension plan is included in theplan assets and constitutes 20% and 20% of the total plan assets as of March 31,
2023 and 2022, respectively.

(b) Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets is determined considering the current and future
asset portfolio and the long-term rates of return which are expected currently and in the futurefrom the variety of plan assets in the asset portfolio.
(8) Assumptions used for the years ended March 31, 2023 and 2022, were set forth as follows:

Discount rate:
Lump-sum payment
Pension plan
Expected rate of return on plan assets

2023

2022

0.084%
0.382
3.000

0.084 %
0.382
3.000

The amount to be paid to defined contribution pension plan was ¥362 million ($2,711 thousand)and ¥373 million for the years ended March 31, 2023 and 2022, respectively.
17.

ASSET RETIREMENT OBLIGATIONS
The description is omitted because the total amount of asset retirement obligations is immaterial.

- 31 -

18.

EQUITYJapanese companies are subject to the Companies Act of Japan (the "Companies Act"). The
significant provisions in the Companies Act that affect financial and accounting matters are
summarized below:a.

Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in
addition to the year-end dividend upon resolution at the shareholders' meeting. Additionally, forcompanies that meet certain criteria including (1) having a Board of Directors, (2) having
independent auditors, (3) having an Audit & Supervisory Board, and (4) the term of service of thedirectors being prescribed as one year rather than the normal two-year term by its articles ofincorporation, the Board of Directors may declare dividends (except for dividends-in-kind) at any
time during the fiscal year if the company has prescribed so in its articles of incorporation, theBoard of Directors may declare dividends (except for dividends-in-kind) at any time during the
fiscal year if the company has prescribed so in its articles of incorporation. With respect to thethird condition above, the Board of Directors of companies with (a) board committees (namely,
appointment committee, compensation committee and audit committee) or (b) an audit andsupervisory committee (as implemented under the Companies Act effective May 1, 2015) may
also declare dividends at any time because such companies, by nature, meet the criteria under
the Companies Act. The Company is organized as a company with an audit and supervisorycommittee. The Company meets all the above criteria and, accordingly, the Board of Directors
may declare dividends (except for dividends-in-kind) at any time during the fiscal year.
The Companies Act permits companies to distribute dividends-in-kind (noncash assets) toshareholders subject to a certain limitation and additional requirements. Semiannual interim
dividends may also be paid once a year upon resolution by the Board of Directors if the articles ofincorporation of the Company so stipulate. The Companies Act provides certain limitations on theamounts available for dividends or the purchase of treasury stock. The limitation is defined as theamount available for distribution to the shareholders, but the amount of net assets after dividends
must be maintained at no less than ¥3 million.

b.

Increases/Decreases and Transfer of Common Stock, Reserve and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriatedas a legal reserve (a component of retained earnings) or as additional paid-in capital (acomponent of capital surplus), depending on the equity account charged upon the paymentof such dividends, until the aggregate amount of legal reserve and additional paid-in capitalequals 25% of the common stock. Under the Companies Act, the total amount of additional
paid-in capital and legal reserve may be reversed without limitation. The Companies Act also
provides that common stock, legal reserve, additional paid-in capital, other capital surplus
and retained earnings can be transferred among the accounts within equity under certain
conditions upon resolution of the shareholders.

c.

Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury stock and dispose of suchtreasury stock by resolution of the Board of Directors. The amount of treasury stock purchased
cannot exceed the amount available for distribution to the shareholders which is determined by aspecific formula. Under the Companies Act, stock acquisition rights are presented as a separate
component of equity. The Companies Act also provides that companies can purchase bothtreasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights arepresented as a separate component of equity or deducted directly from stock acquisition rights.

- 32 -

19.

STOCK OPTIONSThe stock options outstanding as of March 31, 2023 are as follows:
Stock
OptionPersons
GrantedNumber of
Options Granted

1st Stock
Option11 directors(Juroku Bank,
Ltd.)

2,780 shares2013.7.23¥1($0.01 )From October 1, 2021
to July 23, 2043

2nd Stock
Option11 directors(Juroku Bank,
Ltd.)

6,240 shares2014.7.23¥1($0.01 )From October 1, 2021
to July 23, 2044

3rd Stock
Option10 directors(Juroku Bank,
Ltd.)

3,600 shares2015.7.23¥1($0.01 )From October 1, 2021
to July 23, 2045

4th Stock
Option7 directors and
8 executive
officers(Juroku Bank,
Ltd.)

5,200 shares2016.7.22¥1($0.01 )From October 1, 2021
to July 22, 2046

5th Stock
Option7 directors and
8 executive
officers(Juroku Bank,
Ltd.)

6,100 shares2017.7.21¥1($0.01 )From October 1, 2021
to July 21, 2047

6th Stock
Option7 directors and9 executive
officers(Juroku Bank,
Ltd.)

8,530 shares2018.7.23¥1($0.01 )From October 1, 2021
to July 23, 2048

7th Stock
Option7 directors and9 executive
officers(Juroku Bank,
Ltd.)

13,100 shares2019.7.23¥1($0.01 )From October 1, 2021
to July 23, 2049

8th Stock
Option6 directors and9 executive
officers(Juroku Bank,
Ltd.)

15,900 shares2020.7.22¥1($0.01 )From October 1, 2021
to July 22, 2050

9th Stock
Option6 directors and3 executive
officers(the Company)
6 directors and
12 executive
officers(Juroku Bank,
Ltd.)

29,470 shares

2021.12.23¥1($0.01 )From December 24,
2021 to December
23, 2051- 33 -

Date of
Grant

Exercise
Price

Exercise Period

Note: The 1st to 8th Stock Option are the rights issued by the Company to the holders of stock option rights issued by The Juroku Bank, Ltd. due to the establishment of
the Company through the sole share transfer of The Juroku Bank, Ltd.
The stock option activity is as follows:
1st
Stock
Option

2nd
Stock
Option

3rd
Stock
Option4th
Stock
Option(Shares)

5th
Stock
Option6th
Stock
Option7th
Stock
Option8th
Stock
Option9th
Stock
Option

-

-

-

-

-

-

-

-

12,63012,630
-

2,780
2,780
-

6,240
6,240
-

3,600
3,600
-

5,200
5,200
-

6,100
6,100
-

7,990
540
7,450
-

12,390890
11,500-15,110980
14,130-16,84012,6303,800
25,670-¥1($0.01)¥ 3,650($27.33)¥1($0.01)¥ 3,200($23.96)¥1($0.01)¥ 4,640($34.75)¥1($0.01)¥ 2,390($17.90)¥1($0.01)¥ 3,170($23.74)¥1($0.01)¥ 2,227($16.68)¥ 2,587($19.37)¥1($0.01)¥ 2,227($16.68)¥ 2,068($15.49)¥1($0.01)¥ 2,227($16.68)¥ 1,670($12.51)¥1($0.01)¥ 2,227($16.68 )¥ 1,748($13.09 )Year Ended March 31, 2023
Non-vested
March 31, 2022—Outstanding
GrantedCanceled
VestedMarch 31, 2023—Outstanding
VestedMarch 31, 2022—Outstanding
VestedExercised
Canceled
March 31, 2023—Outstanding
Exercise price
Average stock price at exercise
Fair value price at grant date

Note 1:

From the current consolidated fiscal year, the Company has abolished the stock compensation-type stock option plan and introduced the restricted stockcompensation plan.

Note 2:For the 1st to 8th Stock Options, the fair valuation rate as of the initial date granted by The Juroku Bank, Ltd. is described.

- 34 -

20.

OTHER OPERATING INCOME
Other operating income for the years ended March 31, 2023 and 2022, consisted of the following:

Millions of Yen
2023
2022

21.

Thousands of
U.S. Dollars
2023

Gains on sales of Japanese government bonds and other
Income on lease transaction and installment receivables
Other

¥

512
25,2044,135¥ 1,730
24,811
5,615

$

3,834
188,752
30,967

Total¥ 29,851¥ 32,156$ 223,553

OTHER INCOME
Other income for the years ended March 31, 2023 and 2022, consisted of the following:

Millions of Yen
2023
2022

22.

Thousands of
U.S. Dollars
2023

Gain on sales of stock and other securities
Other¥ 3,868747¥ 7,013641$

28,967
5,595

Total

¥ 4,615¥ 7,654$

34,562

GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses for the years ended March 31, 2023 and 2022, consisted of thefollowing:

Millions of Yen
2023
2022

23.

Thousands of
U.S. Dollars
2023

Salaries and wages
Commission fee
Other¥ 17,729
4,642
19,868¥ 18,359
4,706
21,495$ 132,772
34,764
148,790

Total¥ 42,239¥ 44,560$ 316,326

OTHER EXPENSE
Other expense for the years ended March 31, 2023 and 2022, consisted of the following:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Loss on sales of stock and other securities
Write-down of stock and other securities
Other

¥

106
161
312

¥ 461
21
590

$

794
1,206
2,336

Total

¥

579

¥ 1,072$

4,336- 35 -

24.

INCOME TAXESThe Bank and its subsidiaries are subject to Japanese national and local income taxes, which in theaggregate, resulted in a normal effective statutory tax rate of approximately 29.92% for the years
ended March 31, 2023 and 2022.
The tax effects of significant temporary differences and tax loss carryforwards, which result in deferred
tax assets and liabilities as of March 31, 2023 and 2022, were as follows:

Millions of Yen
2023
2022
Deferred tax assets:
Allowance for loan losses
Write-down of securities
Liability for retirement benefits for employees
Depreciation
Other
Less: valuation allowance
Total
Deferred tax liabilities:
Unrealized gain on available-for-sale securities
Net defined benefit asset
Gain on contribution of available-for-sale securities
to employees' retirement benefit trusts
Other
Total
Net deferred tax liabilities¥ 6,267
6,757
1,779
1,198
2,196
(8,468 )

¥

6,672
6,671
1,851
1,274
2,102
(8,435)

Thousands of
U.S. Dollars
2023$

46,93350,603
13,323
8,972
16,445(63,416 )

9,729

10,13572,860(12,177 )(1,835 )(20,736)(2,198)(91,193 )(13,742 )(955 )(1,428 )(955)(1,429)(7,152 )(10,694 )(16,395 )(25,318)(122,781 )¥ (6,666 )¥(15,183 )$(49,921 )A reconciliation between the normal effective statutory tax rate and the actual effective tax rate
reflected in the accompanying consolidated statement of income for the years ended March 31, 2023
and 2022, was as follows:
2023

2022

Normal effective statutory tax rate
Expenses not deductible for income tax purposes
Income not taxable for income tax purposes
Per capita tax
Net change in valuation allowance
Elimination of dividend income
Consolidated adjustment for gains on sale of shares of subsidiaries
Other—net-%-

29.92 %
1.12
(20.81)
0.26
13.87
3.51
4.32
1.41

Actual effective tax rate-%

33.61 %

Figures for the current consolidated fiscal year are omitted because the difference between thestatutory effective tax rate and the corporate tax burden rate after the application of tax effectaccounting is not more than 5% of the statutory effective tax rate.

- 36 -

25.

LEASES
Finance Leases(Lessee)A subsidiary leases certain premises.
There was no rental expense including lease payments under the finance leases for the years ended
March 31, 2023 and 2022.
(Lessor)A subsidiary leases certain equipment and other assets.
The net investments in leases as of March 31, 2023 and 2022, were as follows:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Gross lease receivables
Unguaranteed residual values
Deferred interest income¥ 51,606
1,265(4,352 )¥ 53,339
1,353(4,449 )$ 386,475
9,474(32,592 )Total¥ 48,519¥ 50,243$ 363,357

Maturities of lease receivables for finance leases that were deemed to transfer ownership of theleased assets to the lessee are as follows:
As of March 31, 2023
Year Ending
March 31

Millions of Yen

Thousands of
U.S. Dollars

2024
2025
2026
2027
2028
2029 and thereafter¥ 1,432
1,197
866
618
469
789

$10,724
8,964
6,486
4,628
3,512
5,909

Total

¥5,371$40,223

As of March 31, 2022
Year Ending
March 31

Millions of Yen

2023
2024
2025
2026
2027
2028 and thereafter¥ 1,362
1,158
835
503
310
456

Total

¥ 4,624- 37 -

Maturities of investment in leases for finance leases that were deemed not to transfer ownership of theleased assets to the lessee are as follows:
As of March 31, 2023
Year Ending
March 31

Millions of Yen

Thousands of
U.S. Dollars

2024
2025
2026
2027
2028
2029 and thereafter¥14,909
12,079
9,182
6,580
4,108
4,748

$111,653
90,45968,76449,27730,76535,557

Total¥51,606$386,475

As of March 31, 2022
Year Ending
March 31

Millions of Yen

2023
2024
2025
2026
2027
2028 and thereafter¥ 14,992
12,489
9,687
6,786
4,231
5,154

Total

¥ 53,339

Operating Leases(Lessee)
The minimum rental commitments under noncancelable operating leases as of March 31, 2023 and2022, were as follows:

Millions of Yen
2023
2022

Thousands of
U.S. Dollars
2023

Due within one year
Due after one year

¥

238
1,210

¥ 241
1,430

$

1,782
9,062

Total

¥ 1,448¥ 1,671$

10,844- 38 -

(Lessor)
Expected future rental revenues under operating leases as of March 31, 2023 and 2022, were as
follows:

Millions of Yen
2023
2022

26.

Thousands of
U.S. Dollars
2023

Due within one year
Due after one year

¥

425
500

¥ 474
598

$

3,183
3,744

Total

¥

925

¥ 1,072$

6,927

FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Group Policy for Financial Instruments
The Group provides banking services and comprehensive financial services including a leasing
business.
In the core banking business, in addition to procurement through the acceptance of deposits, theGroup raises funds through borrowings and other means, manage loans with a focus on businessloans and housing loans, and manage securities investment with a focus on bonds.
Since the Group has financial assets and liabilities mainly accompanied by interest rate
fluctuations, the Group conducts comprehensive management of assets and liabilities (ALM) sothat adverse effects from interest rate fluctuations do not occur. As part of this, the Group also
conducts derivative transactions.
(2) Nature and Extent of Risks Arising from Financial Instruments
The loans and bills discounted are to general business enterprises, individuals, and local publicbodies, and there is a risk (credit risk) that the value of loaned money is reduced by financial
deterioration of the borrower and a risk (interest risk) of losses due to changes in interest rates.
In securities, the Group holds domestic bonds, foreign securities, stocks, investment trusts, andinvestment partnerships and so forth for investment purposes. Also, the Group holds certain
domestic bonds for held-to-maturity purposes. In trading securities, the Group holds domestic
bonds for trading. These items have interest risk, risk of changes in price, credit risk, and market
liquidity risk. Market liquidity risk represents the risk that market trades cannot be performed due
to market turmoil and that the Group may suffer losses due to significantly unfavorable financing
conditions.
Deposits and borrowed money hold interest risk and cash flow risk (liquidity risk). Cash flow riskrefers to the risk that securing necessary financing becomes difficult or significant unfavorable
financing conditions result in recording of loss due to a mismatch of periods between operations
and financing and unexpected outflows of money. Derivative transactions related to interest arecomposed of interest-rate swap agreements, cap agreements, floor agreements, and interest
futures.
Derivative transactions related to currency are composed of exchange contracts, non-deliverable
forwards (NDF), currency swap agreements, and currency option contracts. Derivativetransactions related to securities are composed of bond futures, options on bond futures,
over-the-counter (OTC) bond options, stock index futures, options on stock index futures, andindividual security options.
The Group utilizes derivative transactions to meet customer needs and to control risk so thatinterest risk, risk of changes in prices, and foreign currency exchange risk are not excessive. In
trading transactions, the Group utilizes derivative transactions to earn a profit and to accumulate- 39 -

the know-how related to the transactions and understand market trends.
The derivative transactions the Group utilizes are exposed to interest risk, currency exchangerisk, the risk of change in prices, and credit risk. In utilizing derivative transactions, the Group
performs effective covering of transactions to meet customers' needs, and in trading transactions,
the Group preliminarily establishes a risk limit to avoid exposing the Group to an excessive degreeof market risk. Transactions such as listed futures are exposed to limited credit risk and OTC
transactions such as interest swaps are assumed to have low risk since the counterparties arecomposed of highly credible financial institutions and companies.
For some derivative transactions that hedge securities, etc., the Company applies hedge
accounting based on internal regulations and internal hedging policies complying with the“Practical Guidelines for Accounting for Financial Instruments” (Accounting System Committee
Report No. 14, hereinafter referred to as the “Practical Guidelines”). The hedging target andhedging instrument to which hedge accounting was applied in the current consolidated fiscal year
are as follows:・Hedging target: Securities
・Hedging instrument: Interest Rate Swap
The effectiveness of hedging is evaluated in the manner stipulated in the Practical Guidelines,
etc.
(3) Risk Management for Financial Instruments
Integrated risk
The Group defines integrated risk management policies and regulations, and strengthens
integrated risk management to ensure the soundness of management.
The Group monitors various risks holistically including measurement by statistical methods andaims to control risks within the range of management vitality. Integrated risk is managed by theGroup Risk Supervisory Division and is reported generally quarterly to the Group Risk
Compliance Meeting and Group Risk Compliance Committee and generally semiannually to theBoard of Directors' meetings. Necessary actions such as risk control are taken promptly.
Credit risk management
Credit risk refers to the risk of incurring losses due to a decrease or loss in the value of assets asa result of deterioration in the financial situation of a creditor.
Regarding credit risk management, the Group defines a credit rating system where the Groupevaluates the degree of credit risk by an integrated scale objectively and discusses
countermeasures with the Group companies as necessary in addition to monitoring the status ofcredit risk management at the Group companies and the risk of credit concentration throughout
the Group.
Market risk management (foreign exchange risk and interest rate risk)
Market risk refers to the risk that the value of assets and liabilities will fluctuate due to fluctuations
in various market risk factors such as interest rates, foreign exchange rates, and stocks, and therisk of incurring losses due to fluctuations in the earnings generated from assets and liabilities.
Under integrated risk management, the consolidated subsidiaries engaged in banking businesssemi-annually allocate risk capital to each business (deposit, loan, investment securities andother securities) and establish a cap on the investment amount and a maximum loss amount andmatter to be discussed (level of loss to be re-examined) and department in charge handles market
transactions within these risk limits expeditiously and effectively.
The Group holds financial instruments which are exposed to market risks (e.g. interest rate risk,
price-volatility risk and exchange risk) such as loans and bills discounted, securities, deposits,
negotiable deposits, borrowed money and corporate bonds. To manage these market risks, the- 40 -

Group calculates VaR, which is used for quantitative analysis.
The Group calculates VaR of yen-denominated bonds (including private placement bonds),
borrowed money and corporate bonds that are exposed to interest rate risk by thevariance-covariance method (six months holding period with confidence interval of 99% andobservation period one year). The VaR of these financial instruments amounted to ¥55,738 million($417,419 thousand) and ¥22,170 million in aggregate as of March 31, 2023 and 2022,
respectively.

The Group calculates VaR of investment securities that are exposed to price-volatility risk by thevariance-covariance method (six months holding period with confidence interval of 99% andobservation period one year). The VaR of these financial instruments amounted to ¥32,288 million($241,803 thousand) and ¥42,442 million in aggregate as of March 31, 2023 and 2022,
respectively.
In addition, the Group calculates VaR of securities, excluding investment securities, which areexposed to interest rate risk or the price-volatility risk by the variance-covariance method (sixmonths holding period with confidence interval of 99% and observation period one year). The VaRof these financial instruments amounted to ¥66,856 million ($500,681 thousand) and ¥39,326
million in aggregate as of March 31, 2023 and 2022, respectively.
The Group compares VaR calculated by the formula with the actual fluctuation of realized gains
and losses to verify that the calculated VaR reflects market risks with a high degree of accuracy.
However, VaR might not reflect market risks in circumstances such as unforeseen wide
fluctuations in market circumstances because VaR reflects a certain amount of market risks
calculated statistically based on historical fluctuation.
Liquidity risk management
Liquidity risk refers to cash flow risk and market liquidity risk. Cash flow risk refers to the risk of
incurring losses due to a mismatch between the investment and funding periods or an unexpected
outflow of funds, which makes it difficult to secure the necessary funds, or due to being forced toraise funds at a significantly higher interest rate than usual. Market liquidity risk refers to the risk of
incurring losses due to the inability to trade in the market due to market turmoil or other factors or
being forced to trade at a significantly more disadvantageous price than usual. The Company
monitors the status of cash flow and liquidity risk and matters affecting cash flow and has
established a system to respond promptly and accurately even if an unforeseen situation occurs.

- 41 -

(4) Financial Instruments Categorized by Fair Value Hierarchy
Fair values of financial instruments are calculated based on certain assumptions; therefore, fairvalues may vary according to the assumptions used.
The amount recorded in the consolidated balance sheet, market value, the difference between
these, and the market value for each level are as follows. Shares without market prices andinvestment in partnerships are not included in the following table:
The fair value of financial instruments is categorized into the following three levels according to theobservability and significance of the inputs used in making fair value measurements:
Level 1: Fair values measured by using observable inputs, i.e. quoted prices in active markets for
assets or liabilities that are the subject of the measurement.
Level 2: Fair values measured by using observable inputs other than Level 1 inputs.
Level 3: Fair values measured by using unobservable inputs.
If multiple inputs are used that have a significant impact on the measurement of fair value, fairvalue is classified at the lowest level in the fair value measurement among the levels to which
each of these inputs belongs.
(a) Financial instruments measured at fair value:
Millions of Yen
Carrying AmountMarch 31, 2023
Securities (available-for-salesecurities)
Japanese equity securities
Japanese government
bonds
Japanese local government
bonds
Japanese corporate bonds
Foreign bonds
Investment trust (*1)
Other securities
Total assets
Derivative transactions(*2) (*3)
Interest-related transaction
Currency-relatedtransaction
Credit derivativetransaction

Level 1

Level 2

Level 3

¥ 345,262¥1,030,415

120,645190¥1,375,867

6,736

-

127,381

175,682--

175,682-

527,523-

527,523-265,605190

265,795

38,565
10,370-126,598
103,9512-

165,163
114,3212¥345,262¥1,030,415

190¥1,375,867

¥

¥

¥

Total

¥

-

¥ (3,371)¥ (27)

-

500

-

500

-

(3,871)-(3,871)

-

-

(27)

(27)

- 42 -(3,398)

Millions of Yen
Carrying AmountMarch 31, 2022
Securities (available-for-salesecurities)
Japanese equity securities
Japanese government
bonds
Japanese local government
bonds
Japanese corporate bonds
Foreign bonds
Investment trust (*4)
Other securities
Total assets
Derivative transactions (*2)
Interest-related transaction
Currency-relatedtransaction
Credit derivativetransaction

Level 1

Level 2

Level 3Total

¥ 318,463¥945,113¥28¥1,263,604

129,724

2,644-

132,368

186,434

18,305-

204,739-

549,054-549,054-

210,44328

210,471

2,305-

164,6652-

166,9702¥318,463¥945,113¥28¥1,263,604¥-¥ (3,664)350¥ (15)--(4,014)-(4,014)

-

-

(15)

(15)

- 43 -¥(3,679)350

Thousands of U.S. Dollars
Carrying AmountMarch 31, 2023
Securities (available-for-salesecurities)
Japanese equity securities
Japanese government
bonds
Japanese local government
bonds
Japanese corporate bonds
Foreign bonds
Investment trust (*1)
Other securities
Total assets

Derivative transactions(*2) (*3)
Interest-related transaction
Currency-relatedtransaction
Credit derivative transaction

Level 1

Level 2

Level 3

$2,585,651$7,716,730$1,423

903,505

50,445-

Total$10,303,80
4
953,950

1,315,674--

1,315,674-

3,950,595-

3,950,595-

1,989,104

1,423

1,990,527

288,811
77,661-

948,087
778,484
15-$2,585,651$7,716,730$1,423

1,236,898
856,14515$10,303,80
4$-$ (25,245)$ (202)$ (25,447)

-

3,744

-

3,744

-

(28,990)-(28,990)

-

-

(202)

(202)

(*1) Investment trusts for which the base value under Paragraph 24-9 of the “Implementation
Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31,
June 17, 2021) is deemed as market value are not included. The amount of investment
trusts on the consolidated balance sheet is ¥8,588 million ($64,315 thousand).
(*2) Derivative transactions recorded in other assets and liabilities are presented collectively.
Net receivables and liabilities arising from derivative transactions are presented in net
amounts, and items that constitute net liabilities in total are presented in parentheses.
(*3) Among derivative transactions, the amount of transactions on the consolidated balance
sheet to which hedging accounting is applied is ¥167 million ($1,251 thousand).
(*4) Investment trusts to which the transitional measures stated in Paragraph 26 of the“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ
Guidance No. 31, July 4, 2019) are applied are not included in the above table. The
amount of the investment trusts on the consolidated balance sheet is ¥110,535 million.

- 44 -

The adjustment table from the beginning balance to the year-end balance of investment trusts
for which the base value is deemed as the market value is as follows:¥7,972Thousands of
U.S. Dollars$ 59,702

Recorded in profit or loss--

Recorded in othercomprehensive income (*)

123

921

493

3,692

-

-

Millions of Yen
Beginning balance
Profit or loss or othercomprehensive income for theperiodPurchases, sales andredemption (net)Amount for which the base valueof the investment trusts is
considered to be the fair value
Amount for which the base valueof the investment trusts is notconsidered to be the fair value
Ending balance--¥ 8,588$ 64,315

Gains or losses on valuation of
the investment trusts held at theend of the reporting period
included in profit or loss for theperiod

¥

(*)

-

$

-

Included in the “Unrealized loss on available-for-sale securities” under "Other
Comprehensive Income" in the Consolidated Statement of Comprehensive Income.

- 45 -

(b) Financial instruments other than those measured at fair value:
Cash and due from Banks, call loans and bills bought, negotiable certificates of deposit, payables under repurchase agreements, and payables under securities lending transactions are settled in a short period of time, and the carrying
value approximates fair value. Therefore, the notes are omitted.
Millions of Yen
Fair Value

March 31, 2023
Level 1
Securities (held-to-maturity—debt
securities)
Corporate bonds
Loans and bills discounted
Reserve for possible loan losses

Level 2

Level 3Carrying
Amount

Total

¥

-

¥

-

¥

58,152¥ 58,152

Total assets

¥

-

¥

-

4,655,584¥4,713,736

4,655,584¥4,713,736

58,0604,695,448(22,770)
4,672,678¥4,730,738

Deposits
Borrowed money
Total liabilities¥¥-

Difference

¥

¥

92

(17,094)¥(17,002)¥6,266,995
329,453¥-¥6,266,995
329,453¥6,266,981
329,501

¥

14
(48)

¥6,596,448¥-¥6,596,448¥6,596,482

¥

(34)

Millions of Yen
Fair Value

March 31, 2022
Level 1

Level 2

Securities (held-to-maturity—debt
securities)
Corporate bonds
Loans and bills discounted
Reserve for possible loan losses¥-

Total assets¥-

Deposits
Borrowed money
Total liabilities¥¥-

Level 3Carrying
Amount

Total

¥

-

¥

62,860¥ 62,860¥-

4,510,646¥4,573,506

4,510,646¥4,573,506

62,795
4,521,824(24,429)
4,497,395¥4,560,190

Difference

¥

¥

65

13,251¥13,316¥6,225,324
1,405,773¥-¥6,225,324
1,405,773¥6,225,291
1,405,797

¥

33
(24)

¥7,631,097¥-¥7,631,097¥7,631,088¥

9

Thousands of U.S. Dollars
Fair Value

March 31, 2023
Level 1
Securities (held-to-maturity—debt
securities)
Corporate bonds
Loans and bills discounted
Reserve for possible loan losses

Level 2$-

Total assets$-

Deposits
Borrowed money
Total liabilities$$-

Level 3Carrying
Amount

Total

$

-

$

435,498$-

34,865,453$35,300,951$

435,498$

34,865,453$35,300,951

434,80935,163,993(170,524)
34,993,469$35,428,278

Difference$

689(128,016)$(127,327)$46,933,236
2,467,258$-$46,933,236
2,467,258$46,933,131
2,467,618

$

105
(360)

$49,400,494$-$49,400,494$49,400,749

$

(255)

* Allowances for general doubtful accounts and allowances for individual doubtful accounts corresponding to loans are deducted.
- 46 -

(Note 1) Explanation of evaluation techniques used for the calculation of market value and inputs
related to the calculation of market value
AssetsSecurities
Securities whose unadjusted quoted prices in active markets are available are categorized
as Level 1. This mainly includes listed stocks, listed investment trusts, and government
bonds.
Securities whose quoted prices are not considered to be in active markets due to low market
transactions are categorized as Level 2. This mainly includes Japanese local government
bonds and corporate bonds. Regarding investment trusts with no trading prices in the market,
if there is no restriction significant enough for market participants to require consideration
relating to cancellation or repurchase claims, the base value is fair value and the fair value isclassified as Level 2.
When the quoted price is not available, the fair value is measured by using valuation
techniques such as the discounted present value method of future cash flows. The Company
makes maximum use of observable inputs for valuation techniques, which include TIBOR,
prepayment rate, credit spread, bankruptcy probability, and bankruptcy loss rate. Securities
whose fair values are measured by using significant unobservable inputs are categorized as
Level 3.
Loans and Bills Discounted
The fair values of loans are measured by discounting the total amount of principal andinterest at a discount rate that reflects credit risk, etc. in the market interest rate for eachtype of loan, internal rating, and classification based on period. For loans with variableinterest rates, the carrying value approximates fair value because it reflects the market
interest rate in the short term as long as the credit status of the borrower has not changed
significantly. In addition, as for loans to legally bankrupt borrowers, virtually bankrupt
borrowers, and potentially bankrupt borrowers, the fair value is calculated by deducting theallowance, which is calculated based on the discounted present value of the estimated future
cash flow or the estimated collection of cash from collateral and guarantee, from the balancein the consolidated balance sheet date. Therefore, the carrying value approximates fair value.
The fair value is classified as a Level 3 fair value.
Liabilities
Deposits
For demand deposits, the amount payable immediately on demand as of the consolidatedbalance sheet date is considered to be the fair value. Time deposits are grouped by maturity
lengths and their fair value is calculated by discounting future cash flows with the market
interest rate. For the deposits and negotiable certificates of deposits with the repayment
period within one year, the carrying value approximates fair value due to theshort-term maturities. The fair value is classified as a Level 2 fair value.
Borrowed Money
For borrowed money, the present value is calculated by discounting the total principal andinterest of the borrowings divided into certain periods by the interest rate that takes into
account the remaining term of the borrowing and credit risk. For borrowed money withvariable interest rates, the fair value approximates the carrying value because it reflects themarket interest rate in the short term and the credit status of the Company and its
consolidated subsidiaries has not changed significantly since inception. Also, for borrowed
money that mature within one year, the carrying value approximates fair value due to its
short-term maturities. The fair value is classified as a Level 2 fair value.
- 47 -

Derivatives
Derivatives whose unadjusted quoted prices in active markets are available are categorized
as Level 1. This mainly includes transactions of bond futures and interest rate futures.
However, since most derivatives transactions are over-the-counter transactions and there isno published quoted price, the fair value is calculated using valuation techniques such as thediscounted present value method and the Black Scholes model according to the type oftransaction and the period until maturity. The main inputs used in these valuation techniques
are interest rates, exchange rates, volatility, etc. If unobservable inputs are not used or theireffects are not significant, they are classified as Level 2, and include plain vanilla interest rate
swap transactions, foreign exchange contract transactions, etc. Derivatives whose fair values
are measured by using significant unobservable inputs are categorized as Level 3.

(Note 2) Information about Level 3 of financial instruments measured at fair value(1) Quantitative information on significant unobservable inputs
As of March 31, 2023

Categories

Valuationtechniques

Significant
unobservable
inputsScope of inputs

Weighted
average of
inputsSecurities (available-for-salesecurities)

Corporate bonds

Discounted cash
flow method（*1）

Probability ofbankruptcy
27.3%
Loss rate at thetime of
20.0% - 100.0%
bankruptcy

27.3%
50.8%

(*1) For some corporate bonds, the estimated amount of loan losses is calculated based on theestimated amount of collateral and guarantees, etc. and the fair value is the amount obtained bydeducting the estimated amount of loan losses from the corporate bond value.

As of March 31, 2022

Categories

Valuationtechniques

Significant
unobservable
inputsScope of inputs

Weighted
average of
inputsSecurities (available-for-salesecurities)

Corporate bonds

Discounted cash
flow method（*1）

Probability ofbankruptcy
4.7% - 33.6%
Loss rate at thetime of
20.0% - 100.0%
bankruptcy

24.5%
66.7%

(*1) For some corporate bonds, the estimated amount of loan losses is calculated based on theestimated amount of collateral and guarantees, etc. and the fair value is the amount obtained bydeducting the estimated amount of loan losses from the corporate bond value.

(2) A reconciliation from the beginning balances to the ending balances and gains or losses on
valuation of financial assets and financial liabilities held at the end of the reporting period
included in profit or loss for the period- 48 -

Millions of Yen
Securities
March 31, 2023

Derivativetransactions

Available-for-saleCorporate bonds

Credit derivativetransactions (*4)¥ 28

¥ (16)

Recorded in profit or loss (*1)

(16)

(11)

Recorded in othercomprehensive income (*2)

(3)-

Purchases, sales, issuances,and settlements

(40)

-

Transfer into Level 3 (*3)

221-Transfer out of Level 3--

Beginning balance
Profit or loss or othercomprehensive income for theperiodEnding balance¥190¥ (27)

Gains or losses on valuation offinancial assets and financial
liabilities held at the end of thereporting period included in profit
or loss for the period (*1)¥-

¥ (27)- 49 -

Millions of Yen
Securities

Derivativetransactions

Available-for-sale

March 31, 2022

Corporate bonds
Beginning balance

Credit derivativetransactions (*4)

Others¥ 181¥ 4,002¥-

Recorded in profit or loss (*1)

(11)

-

(16)

Recorded in othercomprehensive income (*2)

2

(2)

-

Purchases, sales, issuances,and settlements(165)(4,000)-Transfer into Level 3 (*3)

21

-

-

Transfer out of Level 3

-

-

-

Profit or loss or othercomprehensive income for theperiodEnding balance

¥

28

¥

-

¥ (16)

Gains or losses on valuation offinancial assets and financial
liabilities held at the end of thereporting period included in profit
or loss for the period (*1)

¥

-

¥

-

¥ (15)(*1) Included in “Other operating income” and “Other operating expenses” in the Consolidated
Statement of Income.
(*2) Included in the “Unrealized gain (loss) on available-for-sale securities” under “Other
Comprehensive Income” in the Consolidated Statement of Comprehensive Income.
(*3) These are privately placed guaranteed bonds held by the Bank, and due to the significant
deterioration in the credit condition of the issuer of the bonds, the holding classification of thebond has been changed from held -to-maturity to available-for-sale.
(*4) Net receivables, payables, profits and losses arising from derivatives transactions arepresented as net amounts, and items that constitute net payables and losses in total arepresented in parentheses.
Thousands of U.S. Dollars
Securities
March 31, 2023

Available-for-sale

Derivativetransactions

Corporate bonds

Credit derivativetransactions (*4)

$ 210

$ (120)Recorded in profit or loss (*1)

(120)

(82)

Recorded in othercomprehensive income (*2)

(22)

-

Purchases, sales, issuances,and settlements

(300)

-

Transfer into Level 3 (*3)

1,655

-

Beginning balance
Profit or loss or othercomprehensive income for theperiod- 50 -

Transfer out of Level 3
Ending balance

$

-

-

1,423

$ (202)-$ (202)

Gains or losses on valuation offinancial assets and financial
liabilities held at the end of thereporting period included in profit
or loss for the period (*1)(*1) Included in “Other operating income” and “Other operating expenses” in the Consolidated
Statement of Income.
(*2) Included in the “Unrealized gain (loss) on available-for-sale securities” under “Other
Comprehensive Income” in the Consolidated Statement of Comprehensive Income.
(*3) These are privately placed guaranteed bonds held by the Bank, and due to the significant
deterioration in the credit condition of the issuer of the bonds, the holding classification of thebond has been changed from held-to-maturity to available-for-sale.
(*4) Net receivables, payables, profits and losses arising from derivatives transactions arepresented as net amounts, and items that constitute net payables and losses in total arepresented in parentheses.
(3) A description of valuation processes used for fair value measurements
The risk management division of the Group has established policies and procedures formeasuring fair value, and each trading division measures fair value following the policies andprocedures. A risk management division verifies whether the fair value obtained is measured
using valid valuation techniques and inputs as well as whether they are classified into an
appropriate level of the fair value hierarchy.
In measuring fair value, the Company uses a valuation model that most appropriately reflects
the nature, characteristics and risks of each asset. In addition, when using quoted prices
obtained from third parties, the Company verifies whether the prices are valid using
appropriate methods, such as confirming the valuation techniques and inputs used andcomparing them with the fair value of similar financial instruments.
(4) A narrative description of sensitivity of the fair value measurement to changes in significant
unobservable inputs
Significant unobservable inputs used in measuring the fair value of the corporate bonds areprobability of bankruptcy and loss rate at the time of bankruptcy. Significant increases(decreases) in any of those inputs in isolation would result in a significantly lower (higher) fairvalue measurement. Generally, a change in the assumption used for probability ofbankruptcy is accompanied by a directionally similar change in the assumption used for loss
rate at the time of bankruptcy.
(Note 3) Securities, etc. that do not have a market price and investment in partnerships are as follows
and are not included in “Securities (available-for-sale securities)” in the table of financial
instruments measured at fair value.

Carrying AmountThousands ofMillions of Yen
U.S. Dollars
2023
2022
2023
Securities, etc. that do not have a market price(*1, *2)
Investment in partnerships (*3)

¥ 6,058
15,934¥ 6,114
16,174$

Total¥ 21,992¥ 22,288$ 164,697- 51 -

45,368
119,329

(*1) Securities, etc. that do not have a market price are not subject to fair value disclosure inaccordance with Paragraph 5 of the “Implementation Guidance on Disclosures about Fair
Value of Financial Instruments” (ASBJ Guidance No. 19, March 31, 2020).
(*2) Impairment losses of ¥59 million ($442 thousand) and ¥5 million are recorded for unlisted
equity securities for the years ended March 31, 2023 and 2022, respectively.
(*3) Investment in partnerships are not subject to fair value disclosure in accordance with Article
24-16 of the "Implementation Guidance on Accounting Standard for Fair Value Measurement"(ASBJ Guidance No. 31, June 17, 2021).
(Note4) Maturity Analysis for Financial Assets, Securities and Financial Liabilities with Contractual
Maturities

March 31, 2023
Securities:
Held-to-maturity securities:
Debt securities—Japanese
corporate bonds
Available-for-sale securities
with contractual maturities:
Debt securities:
Japanese government bonds
Japanese local government
bonds
Japanese corporate bonds
Foreign bonds
Investment trust
Other*
Loans and bills discounted
Total

Due in1 Yearor Less

Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years¥¥¥

13,356

40,116

¥

4,512

76

-

-

135,000

45,50018,9892,739
19,707
1,371
778
826,542

148,977
112,585
32,10645,832
8,479
1,197,485

366,029
42,33925,471
20,514
1,019
966,43067
109,478
101,842
32,254776
1,627,349¥ 883,482¥ 1,585,580¥ 1,561,314¥ 1,917,342

Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years

March 31, 2023

Due in1 Yearor Less

Deposits
Borrowed money¥ 5,840,213
223,832¥ 426,766
105,669

¥2
-

¥

-

Total

¥ 6,064,045¥ 532,435

¥2

¥

-

- 52 -

March 31, 2022
Securities:
Held-to-maturity securities:
Debt securities—Japanese
corporate bonds
Available-for-sale securities
with contractual maturities:
Debt securities:
Japanese government bonds
Japanese local government
bonds
Japanese corporate bonds
Foreign bonds
Investment trust
Other*
Loans and bills discounted
Total

Due in1 Yearor Less

Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years¥¥¥

15,49640,550

¥

6,607

142

2,400

15,000135,000

54,0008,649
14,6704,913
559
796,069

123,345
38,26841,591
36,6988,567
1,201,325

418,550
50,13919,945
20,2762,313
922,044200
106,019
106,385
31,649779
1,526,135¥ 842,756¥ 1,505,344¥ 1,574,874¥ 1,825,309

Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years

March 31, 2022

Due in1 Yearor Less

Deposits
Borrowed money¥ 5,762,350
1,227,702¥ 462,936
178,095

¥5
-

¥

-

Total

¥ 6,990,052¥ 641,031

¥5

¥

-

*

Loans and bills discounted whose cash flows cannot be estimated, such as “legal bankruptcy,”“virtual bankruptcy,” and "possible bankruptcy" loans amounting to ¥66,403 million as of March
31, 2022 and loans and bills discounted with no contractual maturities, amounting to ¥9,849
million as of March 31, 2022 are not included.

- 53 -

March 31, 2023
Securities:
Held-to-maturity securities:
Debt securities—Japanese
corporate bonds
Available-for-sale securities
with contractual maturities:
Debt securities:
Japanese government bonds
Japanese local government
bonds
Japanese corporate bonds
Foreign bonds
Investment trust
Other*
Loans and bills discounted

Due in1 Yearor Less

Thousands of U.S. Dollars
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years$100,022$

300,427 $

33,791

Due after
10 Years

$

569

-

-

1,011,009

340,747

142,208
20,512
147,585
10,2675,827
6,189,935

1,115,682
843,144
240,439343,234
63,4998,967,910

2,741,174
317,075
190,751
153,628
7,631
7,237,550

502
819,876762,690
241,549
5,811
12,187,141$ 6,616,356$11,874,335 $11,692,609$14,358,885

March 31, 2023

Due in1 Yearor Less

Thousands of U.S. Dollars
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years

Deposits
Borrowed money$43,737,085
1,676,268$3,196,031
791,350

$15
-

¥

-

Total

$45,413,353$3,987,381

$15

¥

-

Total

*

Loans and bills discounted whose cash flows cannot be estimated, such as “legal bankruptcy,”“virtual bankruptcy,” and “possible bankruptcy” loans amounting to ¥62,897 million($471,033 thousand) as of March 31, 2023 and loans and bills discounted with no contractual
maturities, amounting to ¥14,745 million ($110,425 thousand) as of March 31, 2023, are notincluded.

Please see Note 14 for annual maturities of borrowed money.
27.

COMMITMENTS AND CONTINGENT LIABILITIESCommitment line contracts on overdrafts and loans are agreements to make loans to customers when
they apply for borrowing up to a prescribed amount as long as there is no violation of any condition in
the contracts.
The total amounts of unused open commitments as of March 31, 2023 and 2022, were ¥1,262,434
million ($9,454,310 thousand) and ¥1,307,876 million, respectively. Multi-purpose accounts includedin the unused open commitments as of March 31, 2023 and 2022, were ¥509,460 million($3,815,322 thousand) and ¥535,278 million, respectively. The amounts of unused commitments
whose original contract terms were within one year or unconditionally cancelable at any time as ofMarch 31, 2023 and 2022, were ¥1,233,950 million ($9,240,995 thousand) and ¥1,227,145 million,
respectively.
Since many of these commitments are expected to expire without being drawn upon, the total amount- 54 -

of unused commitments does not necessarily represent actual future cash flow requirements. Many ofthese commitments have clauses enabling the Bank and certain subsidiaries to reject the loans tocustomers or reduce the contract amounts of commitment, in the event monetary conditions havechanged and the Bank and certain subsidiaries need to secure claims, or other considerable events
have occurred.
In addition, if necessary, the Bank and certain subsidiaries can request the customers to pledge
collateral such as premises and securities at the execution of the contracts. After execution, the Bankand certain subsidiaries periodically evaluate the customers' financial position based upon the Bank's
internal policy, and take necessary measures to manage the credit exposures, such as revising theterms of contracts or securing the claims.

- 55 -

28.

DERIVATIVE INFORMATIONThe Bank enters into swaps related to interest rates, foreign exchange forward contracts, swap andoption contracts related to currencies, over-the-counter bond options and stock index options
contracts related to securities.
Derivative Transactions to Which Hedge Accounting Is Not Applied as of March 31, 2023 and2022

March 31, 2023
Over-the-counter:
Interest-related contracts:
Interest rate swap:
Fixed rate receipt, variable
rate payment
Variable rate receipt, fixed
rate payment
Over-the-counter:
Currency-related contracts:
Currency swap
Foreign exchange forward:
Sell
Buy
Currency option:
Sell
Buy
Other:Sell
Buy
Over-the-counter:
Credit derivative contracts:
Credit default options
Sell
Buy
Credit default swap
Sell
Buy
Other:Sell
Buy

Contract
AmountMillions of Yen
Contract
AmountDue after
One Year
Fair Value¥ 10,299¥ 10,299

10,29910,299307

307

313,002

243,397(4,007 )(2,617 )73,606
17,298

559
491

263
(124 )

263(124 )

59,71961,78646,02948,716(3,304 )
3,301

1,179
(596 )

-

-

-

-

-

-

-

-

1,895

1,895

(27)

(27)

-

-

-

-

- 56 -¥

26

Unrealized
Gains(Losses)¥26

March 31, 2022
Over-the-counter:
Interest-related contracts:
Interest rate swap:
Fixed rate receipt, variable
rate payment
Variable rate receipt, fixed
rate payment
Over-the-counter:
Currency-related contracts:
Currency swap
Foreign exchange forward:
Sell
Buy
Currency option:
Sell
Buy
Other:Sell
Buy
Over-the-counter:
Credit derivative contracts:
Credit default options
Sell
Buy
Credit default swap
Sell
Buy
Other:Sell
Buy

Contract
AmountMillions of Yen
Contract
AmountDue after
One Year
Fair Value¥ 10,320¥ 10,320

¥ 226

¥ 226

10,320

10,320124

124

282,396282,396(2,679 )(1,612 )43,56520,94683-(2,557 )
1,225(2,557 )1,225

79,18081,12053,38454,997(4,195 )
4,192

1,115
(377 )

-

-

-

-

-

-

-

-

711

711

(15)

(15)

-

-

-

-

- 57 -

Unrealized
Gains(Losses)Contract
AmountMarch 31, 2023
Over-the-counter:
Interest-related contracts:
Interest rate swap:
Fixed rate receipt, variable
rate payment
Variable rate receipt, fixed
rate payment
Over-the-counter:
Currency-related contracts:
Currency swap
Foreign exchange forward:
Sell
Buy
Currency option:
Sell
Buy
Other:Sell
Buy
Over-the-counter:
Credit derivative contracts:
Credit default options
Sell
Buy
Credit default swap
Sell
Buy
Other:
Sell
Buy$

77,129Thousands of U.S. Dollars
Contract
AmountDue after
One Year
Fair Value

Unrealized
Gains(Losses)$$

77,129

$

195

195

77,12977,129

2,299

2,299

2,344,058

1,822,789(30,008 )(19,599 )551,232
129,544

4,186
3,677

1,970
(929 )

1,970(929 )

447,233
462,712344,709364,832(24,744 )
24,721

8,829(4,463 )

-

-

-

-

-

-

-

-

14,192

14,192

(202)

(202)

-

-

-

-

Notes: 1. Derivative transactions are valued at market and the gains/losses are recognized in the
consolidated statement of income.
2. There were no transactions applicable for stock-related contracts, bond-related contracts,
and commodities for the years ended March 31, 2023 and 2022.
Derivative Transactions to Which Hedge Accounting Is Applied as of March 31, 2023 and 2022

March 31, 2023

Main
Hedgeditem

Principle method
Interest rate swap:
Variable rate receipt, fixed
rate payment

Deposits- 58 -

Millions of Yen
Contract
AmountContract
Due after
AmountOne Year¥

40,059¥ 40,059

Fair Value¥

167

March 31, 2023

Main
Hedgeditem

Thousands of U.S. Dollars
Contract
AmountContract
Due after
AmountOne Year

Fair Value

Principle method
Interest rate swap:
Variable rate receipt, fixed
rate payment

Deposits$ 300,000$ 1,251$300,000

There were no derivative transactions to which hedge accounting is applied as of March 31, 2022.

29.

COMPREHENSIVE INCOME
The components of other comprehensive loss for the years ended March 31, 2023 and 2022, were as
follows:

Millions of Yen
2023
2022
Unrealized gain (loss) on available-for-salesecurities:
Gains arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Deferred gain (loss) on hedges:
Adjustments arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Defined retirement benefit plans:
Adjustments arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effectTotal
Total other comprehensive loss

- 59 -

Thousands of
U.S. Dollars2023¥ (32,027 )
3,163(28,864 )8,558¥ (18,050 )
3,447(14,603 )4,332$ (239,849 )
23,688(216,161 )
64,090(20,306 )(10,271 )(152,071 )

167
167
(50 )

(124 )(245)(369 )
110

1,251
1,251
(374 )

117(259 )

877(2,042 )(1,944 )(3,986 )
1,193

821(1,751 )(930 )
278(15,292 )(14,559 )(29,851 )
8,934(2,793 )(652 )(20,917 )¥(22,982 )¥ (11,182 )$ (172,111 )30.

PER SHARE INFORMATIONa.

Net Income Per Share
Reconciliation of the differences between basic and diluted net income per share ("EPS") for theyears ended March 31, 2023 and 2022 was as follows:Year Ended March 31, 2023
Net income attributable toowners of parent
Amount not attributable tocommon shareholders
Basic EPS―Net income available
to common shareholders
Effect of dilutive securities—Stockacquisition rights
Diluted EPS―Net income forcomputation

Millionsof YenNet Income
Attributableto Ownersof Parent

Thousandsof Shares

Yen

WeightedAverage
SharesU.S. Dollars

EPS¥ 18,630
18,63036,8355¥ 505.79$ 3.7936,8600¥ 505.44$ 3.7937,335¥ 460.45

255¥ 18,630

Year Ended March 31, 2022
Net income attributable toowners of parent
Amount not attributable tocommon shareholders
Basic EPS―Net income available
to common shareholders
Effect of dilutive securities—Stockacquisition rights
Diluted EPS―Net income forcomputation¥ 17,191
17,19168¥ 17,191

37,403¥ 459.62

Since the Company was established on October 1, 2021 through a sole share transfer, theaverage number of shares of its common stock during the period from April 1, 2021 to September
30, 2021 prior to the establishment of the Company was calculated using the average number ofshares during the period of The Juroku Bank, Ltd., and it was calculated using the average
number of shares of the Company during the period from October 1, 2021 to March 31, 2022.

- 60 -b.

Net Assets Per Share
Net assets per share as of March 31, 2023 and 2022, were ¥10,626.44 ($79.58) and 10,799.18,
respectively.
Net assets per share of common stock as of March 31, 2023 and 2022, were calculated based on
the following:Thousands ofMillions of Yen
U.S. Dollars
2023
2022
2023
Total net assets
Deductions from total net assets:
Stock acquisition rights
Noncontrolling interests¥ 392,561¥ 402,604$ 2,939,871

3,837

180
3,705

28,735

Net assets attributable to common stock at
the end of the fiscal year

¥ 388,724¥ 398,719$ 2,911,136

Number of shares of common stockat the end of the fiscal year used forthe calculation of net assets per share(shares in thousands)

36,581

36,921- 61 -

31.

Revenue Recognition

Disaggregation of revenue from contracts with customers
Information regarding disaggregation of revenue from contracts with customers for the years ended March
31, 2023 and 2022, was as follows.

March 31, 2023

Millions of Yen
Reportable Segment
Banking
Lease
Total

Interest income
Trust fees
Fees and commissions
Deposit and lending
service
Foreign exchanges service
Securities-related service
Guarantee service
Credit card service
Other operating income
Other income¥53,786
1
19,936
3,803
3,739
2,265
2,013
－
1,831
4,623

Income¥80,177

March 31, 2022¥

¥54,588－
18,590
3,288
4,054
2,836
1,993
－
4,425
9,087

Income¥86,690

Total

139
－
－

¥ 53,925
1
19,936¥ 5,987－
6,473¥ 59,912
1
26,409－－－－－26,800
9

3,803
3,739
2,265
2,013
－
28,631
4,632

－
－
1,687
138
2,656
1,843
69

3,803
3,739
3,952
2,151
2,656
30,474
4,701¥26,948¥107,125¥14,372¥121,497

Other

Total

Millions of Yen
Reportable Segment
Banking
Lease
Total

Interest income
Trust fees
Fees and commissions
Deposit and Lending
Service
Foreign exchanges service
Securities-related service
Guarantee service
Credit card service
Other operating income
Other income

Other

¥

195
－
－

¥ 54,783－
18,590¥ 2,971－
5,928¥ 57,754－
24,518－－－－－26,360
1,615

3,288
4,054
2,836
1,993
－
30,785
10,702

－
－
1,856
118
2,471
1,934
438

3,288
4,054
4,692
2,111
2,471
32,719
11,140¥28,170¥114,860¥11,271¥126,131- 62 -

March 31, 2023

Millions of U.S. Dollars
Reportable Segment
Other
Banking
Lease
Total

Interest income
Trust fees
Fees and commissions
Deposit and Lending
Service
Foreign exchanges service
Securities-related service
Guarantee service
Credit card service
Other operating income
Other income$402,8017
149,300

Income

$

Total

1,041
－
－

$403,842
7
149,300$44,836－
48,476$448,678
7
197,776

28,48028,001
16,962
15,075－
13,712
34,622－－－－－200,70467

28,48028,001
16,962
15,075－
214,416
34,689－－12,634
1,033
19,89113,802517

28,48028,001
29,596
16,10819,891
228,218
35,206$600,442$201,812$802,254$107,631$909,885*1. The above table also includes revenue based on the ASBJ Statement No. 10 “Accounting Standards
for Financial Instruments.”*2. “Other” refers to business segments that are not included in the reporting segment, such as financial
instruments transaction, credit card service, and computer-related service.
*3. The difference between the “total” amount in the above table and the amount recorded in the
consolidated statement of income is mainly the elimination of intersegment transactions.

32.

SUBSEQUENT EVENTSAppropriation of Retained Earnings
On May 11, 2023, the Board of Director resolved an appropriation of retained earnings as follows:

Year-end cash dividends—¥70.00 ($0.52) per shareof common stock

Millions of Yen

Thousands of
U.S. Dollars¥ 2,561$19,179

Repurchase of treasury stock
At the Board of Directors meeting held on May 11, 2023, the Company resolved and implemented
matters related to the repurchase of treasury stock in accordance with the provisions of Article 156 of
the Companies Act, as applied by replacing the relevant terms pursuant to the provisions of Article
165, Paragraph 3 of the same act.
1. Resolution(1) Reason

For the purpose of achieving sustainablegrowth of the Group and medium- to long-term
improvement of corporate value by enhancing
shareholder returns and contributing to local
communities. In addition, a part of the shares
to be acquired will be allocated to the disposalof treasury stock as described below (decisionon the disposal of treasury stock throughthird-party allotment) to avoid dilution of share- 63 -

value due to disposal.
Common stock
460,000 shares (maximum)(1.257% of total issued shares excluding
treasury stock)¥1,600,000,000 ($11,982 thousand)(maximum)May 12, 2023 to June 12, 2023
Market purchase on the Tokyo Stock
Exchange(2) Class of stock to be acquired(3) Total number of shares to be acquired(4) Total amount of share acquisition
costs(5) Acquisition period(6) Method of acquisition

2. Results of repurchase of treasury stock(1) Class of stock repurchased(2) Total number of shares acquired(3) Total amount of share acquisition
costs(4) Acquisition period(5) Method of acquisition

Common stock
460,000 shares¥1,422,442,294 ($10,653 thousand)May 12, 2023 to June 1, 2023
Market purchase on the Tokyo Stock
Exchange

Disposal of treasury stock through third-party allotment
At the Board of Directors meeting held on May 11, 2023, the Company resolved to dispose of treasury
stock through third-party allotment for the purpose of continuously and stably supporting social
contribution activities of the Juroku Foundation for Regional Promotion (hereinafter referred to as the“Juroku Foundation”). The disposal of treasury stock is approved at the Ordinary General Meeting of
Shareholders held on June 16, 2023. The outline is as follows.
1. Juroku Foundation(1) Purpose and Role of the Foundation
The Juroku Foundation was established in 1997 as a project to commemorate the 120th
anniversary of the founding of The Juroku Bank, Ltd., a subsidiary of the Company, and in 2009, it
was certified as the first public interest foundation from Gifu Prefecture and transitioned to a public
interest incorporated foundation. The purpose of the Juroku Foundation is to contribute to therevitalization of local communities by supporting activities related to the promotion anddevelopment of local industries, improvement of social living environment, local culture, sports,
internationalization, etc. organized, sponsored, or co-sponsored by local governments or publicorganizations, to contribute to the development of human resources by economically supporting
educational opportunities for young people who will be responsible for Gifu and Aichi Prefecturesin the future, and to promote and support arts and culture which contribute to the realization of
affluent and comfortable life and vibrant local communities.
(2) Outline of the Foundationa. Nameb. Locationc. Chairman
d. Activities

Juroku Foundation for Regional Promotion
8-26 Kandamachi, Gifu-shi
Yukio Murase
・Support for activities related to the promotion
and development of local industries
・Support for activities related to theimprovement of the local social living
environment
・Support for activities related to local culture,
sports, internationalization, etc.
・Holding training sessions and lectures related
to the above activities and subsidizing humanresource development- 64 -

・Provision of scholarships
・Promotion and support for art and culture
・Rental of facilities
・Other activities necessary to achieve thepurpose of this corporation
Investment income from basic funds anddonations (as of March 31, 2023)
August 25, 1997 (transitioned to a public
interest incorporated foundation in 2009)

e. Funding for activities
f. Date of establishment
g. Relationship with the Company
Capital relationship

Juroku Bank, a subsidiary of the Company, isthe sponsor of the Juroku Foundation.
The Chairman of the Board of Directors of theCompany concurrently serves as the
Chairman of the Foundation, one Audit andSupervisory Committee Member concurrently
serves as an Auditor, and one Managing
Executive Officer concurrently serves as a
Senior Managing Director. In addition, twoemployees of the Company also serve as
councilors.
Juroku Bank, a subsidiary of the Company,
makes donations to the Juroku Foundation. (Infiscal 2022, Juroku Bank donated ¥28 million($210 thousand).
Not applicable

Personnel relationshipTransaction relationship

Related party relationship
2. Disposal of treasury stock
Overview of disposal(1) Date of disposal(2) Number of shares for disposal

August 25, 2023 (scheduled)
350,000 shares of common stock (0.922% of
total issued shares)¥1 per share¥350,000 ($3 thousand)
Disposition through a third-party allotment
The Master Trust Bank of Japan, Ltd.
The date and other matters concerning thedisposal of treasury stock shall be resolved by
the Board of Directors.

(3) Disposal value(4) Amount to be procured(5) Method of offering or disposal(6) Subscriber (scheduled)(7) Other

3. Purpose and reason for disposal
Through this disposal of treasury stock, the Company will realize the growth and affluence forcustomers and local communities by adopting a mechanism in which dividends on the Company’s
stock will be contributed in addition to the previous donations by Juroku Bank and by securing astable source of funds for the activities of the Juroku Foundation.
In order to continuously and stably support the social contribution activities of the Juroku
Foundation, the Company will establish a third-party benefit trust (hereinafter, the “Trust”) with
Mitsubishi UFJ Trust and Banking Corporation as the trustee, The Master Trust Bank of Japan, Ltd.
as the co-trustee, and the Juroku Foundation as the beneficiary. The Trust will subscribe topurchase shares of the Company’s stock and pay trust proceeds earned from those dividends to
the Juroku Foundation, which will use those proceeds to partially fund its activities and carry out its
business in the future.
The disposal of treasury stock will be made to the Trust, which was established to fund the social
contribution activities of the Juroku Foundation for Regional Promotion.

- 65 -

4. Amount and use of funds to be procured, and scheduled timing of expenditure(1) Amount of funds to be procured
Total amount to be paid in
Estimated amount of issuance costs
Estimated net proceeds¥ 350,000 ($3 thousand)¥0 ($0 thousand)¥ 350,000 ($3 thousand)(2) Specific use of funds to be procured
The above estimated net proceeds are scheduled to be allocated to various expenses necessary
for building the scheme.

33.

SEGMENT INFORMATION

Under ASBJ Statement No. 17, “Accounting Standard for Segment Information Disclosures” and ASBJ
Guidance No. 20, “Guidance on Accounting Standard for Segment Information Disclosures,” an entity isrequired to report financial and descriptive information about its reportable segments. Reportable segments
are operating segments or aggregations of operating segments that meet specified criteria. Operating
segments are components of an entity about which separate financial information is available and suchinformation is evaluated regularly by the chief operating decision maker in deciding how to allocate
resources and in assessing performance. Generally, segment information is required to be reported on thesame basis as is used internally for evaluating operating segment performance and deciding how toallocate resources to operating segments.

- 66 -

a.

Description of Reportable Segments(1) Method for determining the reportable segments
The Group's reportable segments are those for which separate financial information is available and regular evaluation by the Group's management is being
performed in order to decide how resources are allocated among the Group.
The Group provides banking services-based comprehensive financial services and leasing business. The Group consists of two reportable segments: banking
business and lease business.
(2) Types of products and services belonging to each reportable segment
The banking business is operated by The Juroku Bank, Ltd. and provides various services such as deposit-taking and lending services, trading securities,
securities investment, domestic exchange, foreign exchange, managing bonds, a derivatives business and other related businesses at headquarters andbranches of The Juroku Bank, Ltd. In addition, consolidated subsidiaries operate credit guarantee business and supplement the banking business.
The lease business is operated by Juroku Lease Co., Ltd. It provides leasing business to meet local customers' needs.

b.

Methods of Measurement for the Amounts of Income, Profit, Assets and Other Items for Each Reportable Segment
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, "Summary of Significant Accounting Policies."c.

Information about Income, Profit, Assets, Liabilities and Other Items
Millions of Yen
2023
Banking

Reportable Segment
Lease

Total

Other

Total

Reconciliations

Consolidated

Ordinary income:(1) Outside customers(2) Intersegment transactions¥

79,321856¥ 26,664
285¥ 105,985
1,141

¥

6,700
7,672

¥ 112,685
8,813¥(8,813)¥ 112,685
-

Total

¥

80,177¥ 26,949¥ 107,126¥ 14,372¥ 121,498¥(8,813)¥ 112,685

Segment profit
Segment assets
Other:
Depreciation
Amortization of goodwill
Interest income
Interest expense
Allowance for loan losses
Increase in premises and equipment
and intangible assets¥

26,277
7,122,697¥¥

26,704
7,205,081¥ 6,421331,836¥

33,125
7,536,917¥ (5,862)(346,360)

427
82,384¥27,263
7,190,557

2,257
245
53,786
2,703
1,301

512
139
184
35

2,769
245
53,925
2,887
1,336

156
207
5,987
25
146

2,925
452
59,912
2,912
1,482

113
(6,015)
(143)
-

3,038
452
53,897
2,769
1,482

2,104

247

2,351

196

2,547

39

392,586- 67 -

Notes: 1. Ordinary income represents total income less certain extraordinary income included in “Other income” in the accompanying consolidated statement ofincome.
2. “Other” includes business segments of financial instruments business, credit cards, and computer services.
3. Reconciliations mainly represent the elimination of intersegment transactions.
4. Segment profit is adjusted to reconcile to income before income taxes less certain extraordinary items in the accompanying consolidated statement ofincome.
5. Kanda Machi Okoshi Co., Ltd., newly established on April 1, 2022, is included in “Other.”
Millions of Yen
2022
Banking

Reportable Segment
Lease

Total

Other

Total

Reconciliations

Consolidated

Ordinary income:(1) Outside customers(2) Intersegment transactions¥

84,313
2,377¥ 26,201
1,969¥ 110,514
4,346

¥

6,836
4,435

¥ 117,350
8,781¥(8,781)¥ 117,350
-

Total

¥

86,690¥ 28,170¥ 114,860¥ 11,271¥ 126,131¥(8,781)¥ 117,350

Segment profit
Segment assets
Other:
Depreciation
Amortization of goodwill
Interest income
Interest expense
Allowance for loan losses
Increase in premises and equipment
and intangible assets¥

26,9418,305,412¥¥

28,8998,387,685¥ 4,248336,250¥¥(6,348)(348,603)

1,958
82,27333,147
8,723,935¥

26,7998,375,332

2,564
245
54,588
250
2,376

532
195
190
369

3,096
245
54,783
440
2,745

139
207
2,971
16
62

3,235
452
57,754
456
2,807

127
(3,066
)
(138
)
-

3,362
452
54,688
318
2,807

2,879

336

3,215

105

3,320

---

463,366

Notes:
1. Ordinary income represents total income less certain extraordinary income included in “Other income” in the accompanying consolidated statement ofincome.
2. “Other” includes business segments of financial instruments business, credit cards and computer services.
3. Reconciliations mainly represent the elimination of intersegment transactions.
4. Segment profit is adjusted to reconcile to income before income taxes less certain extraordinary items in the accompanying consolidated statement ofincome.
5. NOBUNAGA Capital Village Co., Ltd., newly established on April 1, 2021, and the Company newly established on October 1, 2021, are included in“Other.”- 68 -

Thousands of U.S. Dollars
2023
Banking

Reportable Segment
Lease

Total

Other

Total

Reconciliations

Consolidated

Ordinary income:(1) Outside customers(2) Intersegment transactions$

594,0316,411$ 199,686
2,134$

793,717
8,545$

50,17657,455$

843,893
66,000$(66,000 )$843,893
-

Total

$

600,442$ 201,820$

802,262$ 107,631$

909,893$(66,000 )$843,893

Segment profit
Segment assets
Other:
Depreciation
Amortization of goodwill
Interest income
Interest expense
Allowance for loan losses
Increase in premises and equipment
and intangible assets$ 196,787
53,341,549

$

3,198
616,970$ 199,985
53,958,519$

48,0872,485,104$ 248,072
56,443,623$ (43,900 )(2,593,874 )$ 204,172
53,849,749

16,903
1,835
402,801
20,243
9,743

3,834
1,041
1,378
262

20,737
1,835
403,842
21,621
10,0051,168
1,550
44,836
187
1,094

21,905
3,385
448,678
21,808
11,099846(45,046 )(1,071 )-

22,751
3,385
403,632
20,737
11,09915,7571,850

17,607

1,467

19,074292

19,366

Notes: 1. Ordinary income represents total income less certain extraordinary income included in "Other income" in the accompanying consolidated statement ofincome.
2. "Other" includes business segments of financial instruments business, credit cards, computer services and credit guarantees.
3. Reconciliations mainly represent the elimination of intersegment transactions.
4. Segment profit is adjusted to reconcile to income before income taxes less certain extraordinary items in the accompanying consolidated statement ofincome.
5. Kanda Machi Okoshi Co., Ltd., newly established on April 1, 2022 is included in "Other".

- 69 -

d.

Associated Information(1) Information about services
Millions of Yen
2023

Ordinary income—Outside customers

LendingServiceSecurities
Services

Leasing

Other

Total

¥ 40,548¥ 18,318¥ 26,517¥ 27,302¥ 112,685

Millions of Yen
2022
LendingServiceSecurities
Services

Leasing

Other

Total

¥ 40,206¥ 22,930¥ 26,066¥ 28,148¥ 117,350

LendingServiceThousands of U.S. Dollars
2023
Securities
Services
Leasing
Other$303,662$137,183

Ordinary income—Outside customers

Ordinary income—Outside customers$198,585$204,463

Total$ 843,893(2) Geographical information(a) Operating Revenues
This information is not presented because the Group's revenues in Japan account for
more than 90% of revenues in the consolidated statement of income.
(b) Property and Equipment
This information is not presented because the Group's property and equipment in Japanaccount for more than 90% of property and equipment in the consolidated balance sheet.
(3) Information by major customer
This information is not presented because there are no customers for which income accountfor more than 10% of revenues in the consolidated statement of income.

- 70 -

(4) Information about impairment loss by reportable segment

Millions of Yen
2023

Impairment loss on long-lived
assetsElimination/
Corporate

Total

¥

-

¥ 150

Thousands of U.S. Dollars
2023
Elimination/
Lease
Other
Corporate

Total

Banking

Lease

¥ 150

¥

Banking

Other

-

¥

-

Impairment loss on long-lived
assets$ 1,123$$$$ 1,123―There was no impairment loss by reportable segment for the year ended March 31, 2022.
(5) Information about goodwill and negative goodwill by reportable segment
Millions of Yen
2023

Amortization of goodwill
Goodwill at March 31, 2023
Gain on negative goodwill

Banking

Lease

¥ 245
1,896
-

¥

Other
-

¥ 207
1,297
-

Elimination/
Corporate
¥

Total

-

¥ 452
3,193
-

Elimination/
Corporate

Total

Millions of Yen
2022

Amortization of goodwill
Goodwill at March 31, 2022
Gain on negative goodwill

Banking

Lease

¥ 245
2,141
-

¥

Banking
Amortization of goodwill
Goodwill at March 31, 2023
Gain on negative goodwill$ 1,835
14,199
-

Other

-

¥ 452
3,646
-

Thousands of U.S. Dollars
2023
Elimination/
Lease
Other
Corporate

Total

$

-

-

¥ 207
1,505
-

$ 1,550
9,713
-

¥

$

Note: “Other” represents goodwill related to the financial instruments business.

*****- 71 --$ 3,385
23,912-