INTEGRATEDREPORT

2022
The Hyakujushi Bank, Ltd.

Year ended March 31, 2022

Overview of The Hyakujushi Bank

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Consolidated Financial Highlights

The Bank’s Operational Foundation
Whereas the Bank’s home location of Kagawa Prefecture may be Japan’s smallest prefecture in terms of size, it boasts
comfortable living conditions with few natural disasters, blessed with a warm climate, overlooking the calm Seto
Inland Sea with its beautiful archipelago scenery. Takamatsu is Shikoku’s regional hub, featuring the local branches ofmany central government agencies and companies, in addition to being the seat of the prefectural government. The
region boasts convenient access to the Tokyo metropolitan area, as well as abundant natural scenery and urban functions within a compact area.

Fundamental data on Kagawa Prefecture
Japan

KagawaKagawa Prefecture

Ranking

Area (km²)

377,976

1,876

47th

Population (thousand)

126,140950

39th

Per capita GDP (thousand yen)

4,473

4,007

24th

Average bank balance per household (thousand yen)

13,953

17,510

4th

Active job openings-to-applicants ratio

1.10

1.33

4th

Tokushima Prefecture
Ehime
Prefecture* Source: “Kagawa from the Perspective of 100 Indicators 2022” Kagawa Prefecture

Feature1

Industrial structure adapts well to changeHome to factories of Japan’s top-ranking corporations engaged in fields that
include construction machinery, automotive components, and electricalmachinery, Kagawa Prefecture attracts a large number of such companies’
partner enterprises equipped with sophisticated core manufacturing technologies mainly in those fields. The prefecture also hosts large factories that
handle basic materials such as chemicals and non-ferrous metals, mainly
located in industrial zones situated in the prefecture’s coastal region. In

addition, many food-related companies handling frozen foods, seasonings,
and other such products have operations there.
As such, Kagawa Prefecture tends to be resilient to economic shocks due
to its well-balanced industrial structure not skewed toward any particularindustry. Another distinctive feature of Kagawa is its many niche leadersthat are active in numerous specialized market segments.

Feature2

Transportation and logistics hub

Kagawa Prefecture serves as a gateway to Japan’s Shikoku region. It is accordingly equipped with anextensive regional transportation network that includes Seto Ohashi Bridge, Shikoku Odan Expressway,Takamatsu Airport, and Takamatsu Port.The prefecture features convenient transport access to
the Tokyo metropolitan area and the Kansai region, and occupies a key position in transport networks
connecting Shikoku and Honshu. In addition,Takamatsu Airport aims to be the leading international
airport in the Shikoku-Seto Inland Sea region, progressively transforming into a base for several lowcost carriers from Asia and elsewhere.

Number of ships entering Takamatsu Port (overseas + coastal)

34,820ships

No. 10 in Japan
No. 1 in Shikoku(2019)*Source: Ministry of Land, Infrastructure, Transport and Tourism website

Feature3

Development of information and communications-related industries

Kagawa Prefecture is working to foster the development of information and communications-related industries. In November 2020, it launched the Setouchi-iBase, a facility for developing human resources and generating business models in information and communications-related fields, featuring a co-working spaceand 5G-equipped communications environment, to support aspiring young entrepreneurs as well as businesses that are eager to utilize ICT.
The Bank actively cooperates with this initiative, dispatching instructors to seminars held at the Setouchi-i-Base, and making efforts to provide a broad rangeof its customers with related information.

01

Th e Hyak ujushi Bank , Ltd . Integrated R ep ort 2022

Thousands of
U.S. dollars(Note 1)Millions of yen
For the years ended or as of March 31

2022

2021

2020

2019

2018

2022

¥73,147
58,10815,0391,705
1,631¥68,989
63,877
5,111
3,402
(855)

¥76,895
65,928
10,9663,518(266)¥77,292
68,477
8,814
3,565
(450)

¥80,890
65,775
15,1143,720
807$597,655
474,777
122,877
13,93013,326—
11,702

—
2,565

—
7,715

115
5,584

359
10,227—
95,612AT YEAR-END:
Loans and bills discounted
Securities and trading account securities
Foreign exchange assets
Other assets
Total assets

3,159,889
1,274,877
6,236
1,306,258
5,747,266

3,035,782
1,272,956
9,429
1,057,396
5,375,569

2,847,316
1,259,734
9,793
837,097
4,953,946

2,825,869
1,046,956
5,750
1,017,044
4,895,624

2,833,526
1,031,025
6,997
905,507
4,777,061

25,818,195
10,416,512
50,951
10,672,914
46,958,624

Deposits and negotiable certificates ofdeposit
Foreign exchange liabilities
Other liabilities
Total liabilities

4,632,815
321
829,786
5,462,929

4,525,292
1,341
557,229
5,083,870

4,155,267
296
548,5444,704,115

4,044,109
352
564,580
4,609,048

4,053,820
241
419,385
4,473,454

37,852,888
2,622
6,779,851
44,635,419

37,32230,486
183,444(2,030)249,223

37,32230,486
173,620(2,071)
239,357

37,32230,486173,374(1,999)239,184

37,32230,486167,615(2,041)
233,382

37,32230,486
164,359(2,096)230,072

304,943
249,088
1,498,847(16,586)
2,036,301

25,891

42,59515,04847,822

49,722

211,545

2,611
7,927
(1,339)

2,720
7,928
(945)

(7,447)
7,976(4,971)(1,121)
8,540(2,109)

(39)
8,741
4,984

21,33364,768(10,940)

35,091
21—
284,336¥5,747,266

52,29941—
291,699¥5,375,569

10,60541—249,831¥4,953,946

53,131
61—
286,576¥4,895,624

63,408124
10,000303,606¥4,777,061

286,714171—
2,323,196$46,958,624

FOR THE YEAR:
Total income
Total expenses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Profit attributable to non-controllinginterests
Profit attributable to owners of parent

Common stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
Net unrealized gains on other securities,
net of taxes
Net deferred gains (losses) on hedging
instruments, net of taxes
Revaluation reserve for landRemeasurements of defined benefit plans
Total accumulated other comprehensive
incomeShare subscription rights
Non-controlling interests
Total net assets
Total liabilities and net assets

Notes: 1.	‌Yen figures have been rounded, omitting numbers below the million mark, in accordance with the Japanese Commercial Code and the common accounting practice inJapan.
2. U.S. dollar amounts represent translations of Japanese yen at the exchange rate of ¥122.39 to US$1.00 on March 31, 2022.

Attention regarding forward-looking statements
The reader is advised that this report contains forward-looking statements, which are not statements of historical fact but constituteestimates or projections based on facts known to the Bank’s management as of the time of writing. Actual results may therefore differ
substantially from such statements.

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

02

Strategy for value co-creation

Hyakujushi Group’s Value Creation Process
INPUT

Management strategy

The Bank’s strengths
Key challenges
Achieving adecarbonized society,and diversity
and inclusion

Business model

Local and global communities

verwhelming market share and presence• Odevelopedin Kagawa Prefecture

The Hyakujushi Bank’s SDGs Declaration

Share of deposits:
Share of loans:

Major themes (material issues)

48.0%
37.7%

regional companies• RelationshipTotalwithnumberof business partners
*1

19,497 (up 632 year on year)

Broad geographic spread

当行のマテリアリティ

Creation of local value

Developing the local economy

Supporting the happiness of local residents

Creating opportunities for everyone

Proportion of loans to areas outside
59.5%
Kagawa Prefecture: Human capital•

1st grade Certified Skilled Professional
111
of Financial Planning: 114 Meister system*2

Certified Meisters: 41*2 The Bank’s internal system for certifying three levels of
qualification in each of seven fields related to banking services.

Business model envisioned by the Bank
We envisage a circular model, mobilizing the Group’s strengths and going beyond therealm of finance to solve various issues faced by our customers and communities,
revitalizing the local economy, and enhancing the Bank’s profitability as a result.
Regional revitalization

Intellectual capital
Customer
behavioral changes
due todigital shift•

HyakujushiGroup

Evaluated companies:  4,628
(up 386 year on year)
Customer

Customer

Customer

Accommodating
work-life balance

Medium-Term Management Plan “TryTh e Hyak ujushi Bank , Ltd . Integrated R ep ort 2022

3 Ensure sound business management
and enhance corporate value

Creation of local value

ontinuing financial• Cintermediaryfunction
support through• Gtherowth
resolution of issues• Business continuity and revitalization

Contribution to achieving the SDGs

Developing the local economy

Retail customers
ulti-purpose,• Mlifetime
relationships
upport for• Sasset
formationHighly-convenientservices•

The Hyakujushi Bank’s KPIs

CO2 emissions reduction
Reduce 50% by FY 2030
(compared to FY 2013)

Officers and employees
reation of opportunities for• Ceveryone• Improved work satisfaction
pride and sense of mission• Easnhanceda regional financial institution• A corporate culture of taking on challenges

Mirai (Future)!”Creating opportunities for everyone

Carbon-neutral
by 2050

Sustainable finance

500 billion yen(total for FY 2021–FY 2030)

Shareholders

Natural capitalenvironment with few natural disasters• WRegionalarm
andrich natural environment• Transportationand logistics hub• Abundant tourism
resources•

2 Create a vigorous corporate culture

Customer

Financial capitalDeposits and negotiable certificates of• deposit:

4.6 trillion yen
L

oans
and
bills
discounted:

3.1
yen
• Consolidated capital ratio:  trillion
9.34%• External ratings: “A” (JCR), “A-” (R&I)•(as of March 31, 2022)

1 Prosper together withcustomers and communities

Supporting the happiness of local residents

Local community

Recipients of sales channel development support: 615

03

Environmental conservation

Local government

Recipients of business start-up support: 228

Persistenceof the low-interest rateenvironment/entry fromdifferent industries

GDP growth

Digitalization

 usiness feasibility evaluation by sharingB
customers’ management issuesof solutions to match each compa• Pny’srovision
life stage

ontribution to a low-carbon,• Crecycling
societyreation of industries that will
• Cbringpeople into the regionEnhancementof local attractions•

Corporate VisionCorporate customers*1 Total companies provided with credit or other support

with advanced qualifications• Personnel SME
management consultants 23
Slowdown in thelocal economy
due toCOVID-19

Value provided

Sustainability management

Social capital•
Shrinkinglocal economy
due to declining
population

OUTCOMEKey
strategies

1 Transformation to a
2 Development of human
3 Structural reforms

general consulting group
resources with high market value
leading to the future• Stable return of profits
nhanced information• Edisclosure
Enhancement of shareholder value

Female manager ratio
At least 30% by March 31, 2027

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

04Strategy for value co-creation

Message from the President
Initiatives to achieve a decarbonized society
Environmental problems are directly linked to the earth’s
sustainability and are the primary challenge for sustainability
initiatives. Responding to climate change risk is an especially
urgent task. Almost every year, localized torrential rains due toglobal warming strike the Bank’s local regions, causing damage
to many of our customers.
We have established targets for the reduction of CO2 emissions from our own business activities towards the achievementof a decarbonized society. These include a reduction of 50%
from FY 2013 levels by FY 2030, and net zero by 2050.
We have also established a target of a cumulative total of 500
billion yen in sustainable finance over a 10-year period to
support our customers’ initiatives, and launched the Hyakujushi Carbon Neutral Initiatives Support Package to provide
integrated support for initiatives including CO2 emissions
measurement, the introduction of energy-saving equipment,
and the implementation of internal training.
We hope to contribute to achieving a decarbonized society
by further developing these initiatives and extending theirscope to include a local shift towards carbon neutrality.

Initiatives for diversity and inclusion
We are working to increase diversity and inclusion with anawareness of the strength that the inclusion of diverse humanresources and views can bring to organizations, and how they
can significantly change societies.
For example, the Bank has created workplace environments
and introduced systems to support women’s career development and work-family balance, and implemented measures topromote diverse working styles. As a result, as of March 31,
2022, 25.1% of our managers were women, far exceeding thenational average of 14.6%*. We will continue to engage increating workplace environments that provide opportunities
for everyone, regardless of gender, and plan for at least 30% of
all our managers to be female by March 31, 2027.
* Ministry of Health, Labour and Welfare, Basic Survey of Gender Equality in Employment
Management 2020

We are also endeavoring to respond to the diverse needs ofour customers. For housing loans, we expanded the scope of
those eligible for joint and several obligations, for example, toinclude same-sex partners. We hope to deepen our insight andunderstanding to further enhance our LGBT inclusion initiatives.

Medium-term management plan “TryYujiro Ayada, President

Foreword
I sincerely thank you for your continued patronage of the
Hyakujushi Bank.
FY 2021 brought the continuation of unstable economic
conditions with numerous issues emerging at once, including
geopolitical risks, rising interest rates overseas, and the depreciation of the Japanese yen, in addition to the COVID-19
pandemic. In this external environment, we worked together
with our customers, endeavoring to build deeper relationshipsof trust through initiatives to address issues in partnership withthem. As a result, our performance for the fiscal year ended
March 31, 2022 recovered significantly, and we recorded anincrease in both income and profit for the first time in six
years. I am deeply grateful to our customers, shareholders,
employees, and all our other stakeholders, as this would nothave been possible without your warm support.

Practicing sustainability management
The business environment surrounding the Bank is undergoing
rapid and dramatic changes. Factors that increase future uncertainty such as the COVID-19 pandemic and climate changerisk, in particular, are increasing every year. As a regional
financial institution, the Bank must engage in addressing theissues resulting from these factors.
05

Th e Hyak ujushi Bank , Ltd . Integrated R ep ort 2022

Since making The Hyakujushi Bank’s SDGs Declaration in
2019, we have worked to address various issues associated withthe environment, society, and the local economy, practicing
sustainability management linked to the Bank’s own growth.

The “Try Mirai (Future)!” medium-term management plan,
our current business strategy aimed at practicing sustainability
management, ended its second year with progress on track.
Under this plan, we have set forth the vision of being ageneral consulting group that co-creates the future of customers and communities. We aspire to work, unconstrained by theframework of finance, to resolve any issues faced by our local
customers. We believe that this vision will have three effects on
the Bank.
The first effect is that, by working together to resolve issues,
we will be able to build strong relationships of trust withcustomers, leading to deeper and longer-lasting business
relationships.
The second effect is that the Bank will be reborn with a leanearnings structure, resilient to factors such as the level ofinterest rates in the market environment, by transitioning froma business model centered on interest income and increasing
the proportion of profit from fees and commissions.
The third effect is that the creation of diverse opportunities
for taking on challenges, and the increase in occasions to makecustomers happy, will give our employees satisfaction andpride in their work, revitalizing the organization.
Over the past two years, we have made substantial progress
on initiatives to realize this vision.

Mirai (Future)!”Initiatives for regional revitalization
It is anticipated that a shrinking population, in conjunction witha declining birthrate and aging population, is likely to substantially affect the Bank as well as local economic growth in Kagawa Prefecture, which serves as the primary base of the Bank’s
operations, with some forecasts pointing to a decline of almost
30% in the working age population over the next 30 years.
The Bank has been working with local government authorities on initiatives to revitalize the local region, such as supporting tourism development and entrepreneurship and uncovering
local resources. With the local economy left reeling by the
COVID-19 pandemic, we believe that we must further
strengthen our engagement with the region.
To this end, in FY 2021, we carried out a regional revitalization survey of the eight cities and nine towns in Kagawa Prefecture to discover the existing challenges and needs of each
local government. We intend to offer various suggestions andengage in a range of initiatives based on the results of thissurvey, with the concept of designing the region ourselves.
Initiatives for corporate customers
We aim to resolve the various issues that trouble business
managers and grow together with our corporate customers. To
this end, we are engaged in building connecting consultancy

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

06

Strategy for value co-creation

Message from the President
services to extend our support for customers beyond one-off
assistance, and engage in a process of dialogue, sharing challenges, and supporting implementation to link to the provisionof support in other fields.
In FY 2021, we identified five areas where customer needs
were especially high (business management and revitalization,business continuity, ICT, human resources, and overseas support) and focused on strengthening our support in these areas.
We went on to establish the new Consulting Division in April
2022, consolidating the corporate consulting functions that had
previously been spread between different Head Office divisions.
Initiatives for retail customers
We aim to support our retail customers to enable them to live
in security, without anxiety for the future. We are therefore
endeavoring to build and maintain systems to provide diverse
and relevant services and information at appropriate times
throughout our customers’ lives.
In FY 2021, we formed a strategic business alliance in thedigital field with Resona Holdings, Inc., to expand ourcustomer contact points. In addition to embarking on the joint
development of a new banking app, we also fully renewed our
account opening app to enable customers to open accounts
more safely and simply. We increased the number of locations
where customers could make inquiries on bank holidays, while
also forming a new private banking team within the Head
Office, establishing a framework to undertake asset management for wealthy customers.
 onsulting services that only a regional financial
C
institution can offer
In promoting these consulting initiatives, we cannot hope to
win the support of our customers if we simply mimic regularconsulting companies, providing the same sort of services asthem. Instead, we aim to draw on the trust, connections withpeople, and information that we have acquired throughout theBank’s long history, and leverage our advantage in the provisionof financial services as well, to support the growth of the local
community and our customers in new ways that only a regional financial institution can offer.

Initiatives for human capital
The Bank’s greatest strength is its outstanding human resources. However, we will not be able to make full use of thisstrength unless we recruit and train personnel flexibly tomatch the changing times and business environments.
We are continually reviewing the Bank’s training system todevelop personnel who possess the advanced knowledge andskills needed to resolve the challenges faced by customers andlocal communities.
We also engage in the placement of trainees with outside
entities and the mid-career recruitment of personnel with

Strengthening governanceTo maintain the soundness of the Bank’s operations as we
address new challenges and strive for growth, it is crucial that
we ensure clear roles, chains of command, and accountability,
and appropriately manage risks. It is also important for corporate growth that we construct mechanisms to reflect diverse
views.
In FY 2021, we established the Sustainability Committee,
under the supervision of the Bank’s Board of Directors, toengage in the cross-organizational discussion of initiatives

related to the enhancement of environmental and community
sustainability. And for the systematic development of management personnel, we identified the skills and expertise required
to serve as a member of the Bank’s Board of Directors in lightof factors such as business strategy and the internal and external environments. These skills and expertise were reflected in
the Bank’s successor training policy. Free discussion sessions
were also held with Outside Directors to facilitate fuller
discussion on changes in the business environment.

Conclusion
FY 2022 is the final year of the “Try Mirai (Future)!”medium-term management plan. We will work even harder tosupport the growth of our customers, and we hope to create
their future, and the future of the region, together with them.
The speed of change in the business environment is increasing exponentially, and the outlook is uncertain. However, theBank’s strong relationships of trust with customers lie at thecore of its sustainability management, and this remains unaltered through the changing times. We will boldly take on new
challenges so that we can continue to build strong relationshipsof trust with our customers.
I sincerely thank you and humbly request your continued
support and patronage of the Bank.

specialist knowledge, as appropriate, to secure more specialized human resources. This has resulted in higher motivation
for self-development among the Bank’s employees, including
many employees attempting to obtain difficult qualifications
such as Certified Skilled Professional of Financial Planning andSmall and Medium Enterprise (SME) Management Consultant.
We expect these human resources to generate innovation
within the organization, and provide new value to local communities and customers.

Initiatives for digital transformation (DX)The power of digital technology is indispensable for enhancing
the sustainability of local communities, customers, and theBank. In this context, we believe it is vital not simply to aim
for the adoption of new systems, but to find ways to use thesechanges as opportunities to transform the organization’s own
business model and generate new value.
In the ICT consulting that we provide to corporate customers, we practice accompanied ICT consulting services that go
beyond simply proposing the adoption of new systems to offer
services from work-flow diagnosis and improvement proposals
to post-adoption follow-up. For our retail customers, weestablished the new Digital Strategy Office in April 2022 toanalyze past transaction data and customers’ behavioral traits
07

Th e Hyak ujushi Bank , Ltd . Integrated R ep ort 2022

for the purpose of conducting digital marketing, which enables
us to offer proposals at appropriate times and through appropriate means; we are now establishing a framework and training personnel accordingly. Moreover, we are using digitaltechnology to reform our own operational processes so as tofree up time and personnel for supporting customers resolve
their challenges.
Going forward, we also hope to contribute to community-wide DX through coordination with local government
authorities, to achieve administrative DX (the digital transformation of government services to enhance the convenience of
citizens).

T he H yak ujushi Bank, Ltd . Integrated Rep ort 202208

Sustainability initiatives

Sustainability Management:
Linking the Resolution of Local Issues with the Bank’s Growth
We aim to achieve our Corporate Vision to “prosper together with customers and communities” through the practice of sustainability
management: engaging in the resolution of the diverse range of issues confronting local communities from a long-term perspective,
and linking this to our own growth. We are engaged in four major themes (material issues), selected from among the 17 Sustainable
Development Goals (SDGs) that have the highest affinity with the Bank’s Corporate Vision and business activities.

The Hyakujushi Bank’s SDGs Declaration

Creation of local value
Support for new business creation

We support the creation of new businesses in Kagawa Prefecture. In addition to providing information onvarious subsidies, such as business start-up and manufacturing subsidies, as well as assistance in preparing
subsidy application documents, we hold seminars and individual consultation sessions in collaboration
with local government authorities and related agencies.
We also actively engage in supporting new businesses and second-time start-ups such as business line
changes in anticipation of a post-pandemic world.

• Number of new start-ups 228(as of March 31, 2022):• Number of second-time start-ups(as of March 31, 2022):49

Support for the promotion of tourism

Resolving economic issues
Creation of local value

Developing the local economy

We will create local value by unearthing and promoting local attractions.

We will create a virtuous cycle of mutual
growth by going beyond the realm offinance to provide full support to ourcustomers and the communities.

Major themes(material issues)

Resolving environmental issues

Resolving social issues

Supporting the happiness of
local residents

Creating opportunities foreveryone

We will support people’s happy lives
by assisting their asset formation andrevitalizing the region through social
contribution.

We will embrace diverse ways of thinking
and provide opportunities for our officers,
employees, and local residents to take anactive role in communities and workplaces.

The Tourism Promotion Desk, established to contribute to regional revitalization through the promotion of tourism, plays a central part in our activities
to unearth, investigate, and promote traditional businesses and hidden local attractions in Kagawa Prefecture. We also hold monitoring workshops incollaboration with local government authorities, companies in other sectors, and other parties to provide useful information and ideas for new
destination-based tourism plans.*1 The results of these workshops have been commercialized by a travel company, and a plan proposed in the workshops
has been launched as an experience program by a company welcoming tourist visits.
*1 The design and operation of travel products and experiential tourism programs by the local destination based on tourism resources unique to the region.

In March 2022, these activities were recognized in an award from the minister of state for regional revitalization, awarded by the secretariat of the Council for
the Realization of the Vision for a Digital Garden City Nation (established by the Cabinet Secretariat) for characteristic efforts of financial institutions
contributing to regional revitalization in FY 2021.
Main results of the Bank’s activities
Shodoshima Island

Published a brochure spotlighting Shodoshima somen noodles (July 2014)

Teshima Island

Published the multilingual edition (four languages including Japanese) of Teshima Island’s tourism leaflet (April 2019)

Higashikagawa City
Tadotsu City
Sanuki City
Zentsuji City

Tourism plan from the workshops was commercialized by a travel company(Higashikagawa City: November 2015; Tadotsu City: June 2019; Sanuki City: February 2020;
Zentsuji City: May 2021)

Developing the local economy
Response to COVID-19<Promotion framework>
We established the Sustainability Committee in November 2021, under the supervision of the Board of Directors and chaired by the President, to further
promote and strengthen sustainability management.

We have established consultation counters at all branches, and respondswiftly and flexibly to customer requests for new financing, revised
repayment terms, etc.

• COVID-19-related loans provided 8,058 loans 247.2billion yen

Support for customers’ SDGs initiatives

In August 2021, we launched the Hyakujushi SDGs Initiatives Support
Service for confirming and evaluating customers’ initiatives to address
the SDGs and assisting them in corporate PR through the establishmentof an SDGs Declaration, as well as supporting customers as they engage
in initiatives to address issues in the future.

(as of March 31, 2022):

umber of applications for the Hyakujushi SDGs
• NInitiatives
Support Service(as of March 31, 2022):

Sustainability Committee
Roles• Formulating policies on efforts to resolve various sustainability-related issues in such realms
as the environment, society, and economy

Board of Directors• Deliberating on initiatives and managing progress in the implementation of these initiatives
Main matters deliberated in FY 2021

Sustainability
Committee• Enhancing the framework for sustainability management• Building a framework to manage climate change risk
• Establishing long-term targets for CO emissions reduction and determining actual results• Clarifying the definition of sustainable finance and determining actual results• Introducing LGBT housing loans• Establishing targets for the share of females in management, etc.
2

Head Office
Branches09

Th e Hyak ujushi Bank , Ltd . Integrated R ep ort 2022

Launch of 114 Sustainable Loans

In January 2022, we launched 114 Green Loans and 114 Social Loans,
limited to use for projects with a positive effect on the environment andsociety, as well as 114 Sustainability-Linked Loans, where the Bank offers
favorable interest rates based on the achievement of targets set inaccordance with corporate strategy.

126

Conclusion of a partnership agreement with Kagawa Medical Association

In April 2022, we concluded a partnershipagreement concerning the succession of
medical practices, aimed at resolving
medical practice succession issues asarising from the aging of practitioners
and the absence of successors, andbuilding a sustainable framework for theprovision of local medical services.

Public-private partnerships aimed at resolving local issues

We have established the Kagawa PPP/PFI Regional Platform in collaboration with Kagawa Prefecture, Takamatsu City, and the Development Bank ofJapan, to assist in developing projects that utilize PPP/PFI*2 methods within Kagawa Prefecture. In April 2021, we obtained certification for these efforts
from the Cabinet Office and the Ministry of Land, Infrastructure, Transport and Tourism.
So far, in addition to holding seminars on PPP/PFI projects, we have undertaken sounding surveys to obtain, through direct dialogue, opinions andproposals from private-sector businesses regarding the possible private-sector utilization of public facilities, leading to the commencement of public
offerings.
*2 Public-private partnerships (PPP) are schemes to provide public services through collaboration between the public and private sectors.
Private finance initiatives (PFI) are schemes utilizing private-sector funds and know-how, and are a typical form of PPP.
T he H yak ujushi Bank, Ltd . Integrated Rep ort 202210

Sustainability initiatives

Sustainability initiatives

Initiatives to Address the Task Force on Climate-related Financial
Disclosures (TCFD) Recommendations

Supporting the happiness of local residents

Support for customers’ asset formation

Governance

Proposals tailored to customer needs

Balance of deposit assets

Provided with information such as income, expenditure, and assets of customers and theirfamilies, our Life Planning Service can estimate customers’ lifetime income andexpenditure. The service enables us to propose products and services tailored to eachcustomer’s life stage.

Responding to customer diversity

We have responded to the diverse needs of housing loan customers by revising our products
to expand the scope of those eligible for joint and several obligations and income
aggregation, and those eligible to provide collateral and other securities, to include not only
legally-married heterosexual couples but also same-sex partners.

(Billions of yen)

320.1

Total
Financial
instrumentsintermediation

299.5

304.1

59.7

52.2

Single-premium
insurance

153.8

158.0

Investment
trusts

85.9

93.7

103.1

March 31, 2020

March 31, 2021

March 31, 2022

51.3

•
165.5

Support for achieving carbon neutrality

We offer the Hyakujushi Carbon Neutral Initiatives Support Package, providing integrated support for initiatives to achieve carbon-neutrality, fromCO2
emissions measurement to proposals and implementation support for measures to reduce CO2 emissions.

Phase
1

All aspects of financing (subsidies, finance product proposals, etc.)

Phase
2

Emissions reduction proposals
tailored to each company’s situation

Support for
initiatives to Installation of renewable energy equipment (solar power generation, etc.)
reduce CO2 Replacement with energy-efficient equipment (air conditioners, lighting, boilers, etc.)
emissions
Proposal for deepening internal awareness and educating employees

Promoting diversity and inclusion
Establishment of targets for the share of females in management, etc.

We have established a target for the share of females in management under a plan of action for general employers*1 formulated in accordance with the Act
on the Promotion of Female Participation and Career Advancement in the Workplace, and we are engaged in raising the share of females in management
and promoting female participation and career advancement.

e are working toward achievement of a decarbonized society• Wthroughinitiatives such as financing renewable energy businesses,

assisting customers to reduce their greenhouse gas emissions, andproviding services aimed at alleviating environmental burden.

Risks

e perceive climate change risks in terms of physical risks and• Wtransition
risks.

strategies, and financial planning, and we are making preparations tomanage these risks through an integrated risk management
framework.

Long-term targets for the reduction of CO2 emissions

Definition

Scope 1 and Scope 2 CO2 emissions*2

Targets[Interim target] 50% reduction vs. FY 2013 by FY 2030
[Ultimate target] Achieve carbon neutrality by 2050

Creating comfortable workplaces
We hold individual interviews with employees about to commencematernity leave, to address any questions or concerns about childbirthand related procedures. We also use social media to distributeinformation on the Bank and hold seminars for employees on maternity
leave.
In addition, we hold ikumen (child-rearing men) seminars to encourage
male employees to take an active role in caring for their children.
Th e Hyak ujushi Bank , Ltd . Integrated R ep ort 2022

Promoting health and productivity management

We have made senior management responsible for health promotion, as
we engage in initiatives to maintain and improve the health of employees
and their families across the entire organization, and strive to create
comfortable workplace environments. The Bank has received White 500
certification in the large enterprise category of the Certified Health &Productivity Management Outstanding Organizations Recognition
Program for four consecutive years.

nticipated physical risks include credit risk due to damage to• Acustomers’
assets resulting from abnormal weather conditions, andoperational risk due to causes such as damage to the Bank’s branches.

nticipated transition risks include an increase in credit risk for• Acustomers
affected by factors such as more stringent climate-related
regulation and the advance of technological innovation aimed at
decarbonization.

Carbon-related assets*1

assets account for 1.7% of the Bank’s loan balance.
• C(Asarbon-relatedof March 31, 2022)*1 Total loans to the energy (petroleum and coal) and utilities (electricity and gas)
sectors; not including loans to water utilities, renewable energy power generation
businesses, etc.

e established the “Environmental and Social Management Policy for• WFinancing
and Investment Activity” in December 2020, and we support
businesses striving to resolve environmental and social issues, while
also working to mitigate or avoid the impact of transactions withbusinesses and business operators with a significant negative impact.

Indicators and targets[Target 1] 30% or more female managers (25.1% as of March 31, 2022)[Target 2] 80% or more childcare leave*2 usage rate among male employees (new target)

Support for the child-rearing generation•

Risk management

March 31, 2027

* Spousal maternity leave: five days of special paid leave that can be taken by a spouse within one month of the birth of a child. Leave may
be split over several occasions, in half-day or full-day units.

11

Opportunities

We have established long-term targets for the reduction of CO2
emissions to mitigate climate change risks. By striving for these targets,
we aim to reduce the CO2 emissions from our business activities overthe medium to long term and contribute to the goal, established by theJapanese government, of achieving carbon neutrality by 2050.

Long-term targets

Targets

We have designated addressing climate change and environmental
conservation as a key management issue for the Bank, with the aim ofachieving a sustainable society. We are implementing initiatives from theperspectives of both opportunities and risks.

e recognize that the transition risks and physical risks caused by• Wclimatechange may significantly impact the Bank’s business operations,

Creating opportunities for everyone

Target datepromote and strengthen our initiatives related to sustainability
management.
We established the Sustainability Committee, chaired by the President,
to formulate and implement policies, plans, and initiatives to addresssocial and environmental opportunities and risks, including climatechange. Important matters are also submitted or reported to theBoard of Directors.
In April 2020, we established the Hyakujushi Bank’s Environmental
Policy, clearly stating the Bank’s policy on the environment.

Strategy

Support for customers’ decarbonization efforts

CO2 emissions measurement(energy usage measurement)e have built a framework for the promotion of sustainability-related• Wmeasures
under the supervision of the Board of Directors, to further

In FY 2021, we achieved a 34.2% reduction in CO2 emissions
compared to FY 2013, through measures such as the introduction ofenvironment-friendly commercial vehicles, appropriate air conditioning
temperature control, and the use of renewable energy.

Result for
FY 2021

34.2% reduction vs. FY2013*2 Scope 1: CO2 emissions directly resulting from such processes as the combustion of fuel (gasoline, etc.) by the Bank.
Scope 2: CO2 emissions indirectly resulting from the use of electricity, etc. provided by other companies to the Bank.

Long-term targets for sustainable finance

We have established long-term targets for sustainable finance to support
efforts by local communities and customers to increase sustainability

through our financing and investment activities. We are striving toachieve these targets.

Definition

Financing and investment activities that support and promote initiatives by local communities and customers to resolve environmental and social issues

Target[Target period] 10 years from FY 2021 to FY 2030
 umulative financing and investment of 500 billion yen[Target amount] C(including 200 billion yen for environmental initiatives)

Results
FY 202154.9 billion yen (including 20.4 billion
yen for environmental initiatives)

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

12

Sustainability initiatives

Overview of the Medium-Term Management Plan
Key strategy 1

Title

Transformation to a general
consulting group(April 2020 toMarch 2023)

Try

Mirai (Future)!

Co-create a future where stakeholders can live their lives with a smile
Basic policy

The Hyakujushi Group has become a “local platformer” that goes beyond the realm of finance toward achieving asustainable society amid increasingly severe social circumstances locally. As such, the Bank will take on the challenges of co-creating a future where various stakeholders are able to live their lives with a smile by resolving issues
faced by its customers and local communities.
VisionBy providing new value in our unique way,
we aim to become a general consulting groupthat co-creates the future of customers
and communities.

Key strategy 1

Transformation to a general consulting group
Achieving the Vision

We aim to leverage the financial experience and expertise that the Group has developed in non-financial fields as well, to fulfill
our role as a “local platformer,” guiding local communities and customers to resolve diverse challenges so that they can achieve
growth.

Corporate customers
We have established five key consulting fields where the needs of our corporate customers are especially high: business management andrevitalization, business continuity, ICT, human resources, and overseas support. We are focusing on these fields as we enhance the Group’s
framework, to provide customers with optimal proposals to resolve the various issues they face. We also intend to focus on initiatives for local
government consulting, to support the development of attractive local communities.
We do not simply aim to provide one-off consulting services but aspire to build connecting consultancy services, where a process of dialogue
with customers, the sharing of challenges, and implementation support leads to the provision of continuing consulting services. We will makesustained efforts to achieve this.

Establishment of the Consulting Division

Vision: connecting consultancy services

Development of human resources withhigh market value
Business
continuity

Securing human resources necessary for the
execution of strategies

M&A
Business continuity funds
Intra-family continuity, etc.

Key strategy 3

Structural reforms leading to the future
Achievement of management targets (Millions of yen)

Ensuring sustainable profitability

FY 2020 results

FY 2021 results

Managementtarget (FY 2022)

Profitability Consolidated Consolidated profit*

2,565

11,7026,000 or higher

Soundness Consolidated Consolidated capital ratio

9.35%

9.34%

9.0% or higher

Efficiency Non-consolidated OHR (gross operating profit basis)

76.76%

71.64%

75% or lower

Roadmap of key strategies

Period of the medium-term management plan

Transformation
to a general
consulting group
Structural reforms
leading to the future

Key strategy 1

Development of
human resources withhigh market value

Key strategy 3

Key strategy 2

FY 2019

Th e Hyak ujushi Bank , Ltd . Integrated R ep ort 2022

FY 2020

FY 2021

FY 2022

Ensuring customer-oriented business operations

Assignment
Assignment

FY 2023

FY 2024
Realization of
the Vision(long-term strategy)

Building systems to strengthen solutions
Entry into the management consulting business

Development

Creation of rewarding workplaces and providing diverse career paths
Assignment

Reinforcement of earning power at branches

Ensuring sustainableprofits (short- to
medium-term strategy)

Reinforcement of earning power at the Head Office
Channel reform to support sales strategies

Execution of thorough low-cost management

ICT

Consulting DivisionCorporate
Solution Advisors

Proposals for ICT adoption,
workflow review, etc.

-Flexible seatingWith the establishment of the Consulting Division, we havetransitioned part of our Head Office to a flexible seating officesystem, to facilitate close information sharing.

Full-scale activities by Corporate Solution Advisors (SAs)In the Consulting Division, we have assigned Corporate Solution

Human
resources

Overseas
supportCore human resources
recruitment
HR system proposals, etc.

Support for overseas
expansion
Support for overseas sales
channel development
Financing support, etc.

Advisors (SAs) tasked with working together with customers,
through dialogue, to identify the issues customers face and examine
ways to resolve them. Corporate SAs collaborate with consultants inother fields within the Bank to support customers to resolve issues.
Companies assisted by Corporate SAs (cumulative)(Cases)15

Local revitalization projectplanning, etc.

60Others services provided

March 2021

March 2022

and enhance our range of services in the future.

資産運用・承継
Development of professional
human resources

配置
Human resources
creation through operational process reforms

different divisions, to achieve connecting consultancy services.

We also provide a range of services in areas apart from those shown above, to meet the needs of our customers. We will continue to progressively expand

Contributing to the development of local industry
Mid-career recruitment

consolidating functions that had previously been spread between

Support for business revitalizationand management
Support for SDGs initiatives
Medical and nursing
consulting, etc.

Local government consulting

Consolidated profit is “Profit attributable to owners of parent”

13

We established the new Consulting Division in April 2022,

Business management
and revitalization

Key strategy 2

Cost reduction

Profit enhancement
Cost reduction & greater
operational efficiency• Subsidy application support• Sales channel development support• Foreign exchange derivatives• Operating leases• Business matching services, etc.

• Financing support

Green loans
Social loans
Sustainability-linked loans
Transition-linked loans, etc.

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

14

Sustainability initiatives

Key strategy 2

Key strategy 3

Development of humanresources with highmarket value

Structural reforms
leading to the future

We are engaged in measures such as the development of professional human resources and the recruitment of diverse personnel, to

We are promoting measures such as reinforcing earning power at branches and Head Office and thorough low-cost management with

develop and secure the human resources we need to become a general consulting group.

the aim of transforming into a robust earnings structure resilient to changes in the business environment.

Reinforcing earning power at branches and Head OfficeEncouragement to acquire qualifications
Many of our employees are taking the challenge to gain qualifications such as SME consultant, and we boast an increasing number of personnel withthe advanced skills necessary to support customers resolve the issues they face.

79

87

79

1,031

March 2021

March 202023

Housing Loan Advisor

53

Best organization award

111
March 2022

1st grade Certified Skilled Professional of Financial Planning
1st grade Certified Skilled Professional of Financial Services

164 employees passed the exam in FY 2021
(cumulative total: 745 employees)
Award received from the Financial Official Approval
Association in recognition of an outstanding pass rate andaverage grade on the exam (April 2022)

SME consultant

114 Meister system

Placement of trainees with outside entities and mid-career recruitment

Through our 114 Meister system for certifying the knowledge andbusiness proficiency of employees, we strive to develop professionals equipped both with knowledge and practical skills byencouraging them to take initiative with respect to self-improvement.

We strive to develop highly-skilled professionals who will take on
responsibility for future consulting work by placing our employees
in training courses that help them gain professional qualifications,as well as seconding them to enterprises such as IT and consulting
companies.

Employees certified under the system (as of March 31, 2022)

Placement of trainees with outside entities (as of March 31, 2022)

Meister (top level): 41
Leader (intermediate): 278
Officer (beginner): 1,181

Administrative
trainees

Long-term placement in overseas financial
institutions, IT and specialized consulting
firms, and other such entities

11 employees

Qualification
coursesLong-term placement involving the acquisition of professional qualifications such as
SME consultant

4 employees

We are focusing on lending related to the maritime industry to foster local industry. The scale of this lending has increased significantly as a resultof the establishment of the Ship Financing Office within the Credit Supervision Division and our efforts to increase our credit screening
capabilities and enable more sophisticated risk management, in addition to proactively handling both new shipbuilding projects and used ship
purchase projects to meet customer needs. Looking ahead, we intend to respond to demand for additional funding associated with environmental
measures linked to the global trend towards decarbonization.
Outstanding loan balance related to the maritime industry

Initiatives to raise credit screening capabilities
Quantitative
items

Qualitative
items

Ship Financing Office
Visualization of corporate
qualitative analysis

22
52

20
46

Lending to the maritime industry(Persons)

Maritime-related businesses

Number of employees with qualifications

We are reinforcing our earning power by focusing on the Bank’s special areas of expertise and strengthening our efforts in areas where we can
expect relatively high revenues.

302.3

273.6

Establishment of frameworks to enable risk-taking

Life planning

Loans

Financing management

Consulting

Foreign exchange

Deposit & remittanceHead Office operations

Sophisticated risk management
1,031

79

March 2021

March 2020

Enhanced capability to address each customer

Structured finance152015 Joined the Bank
2015 Marugame Branch2020 Qualified as a 1st
grade Certified Skilled
Professional of Financial
Services
Dec. 2021 Obtained
Meister deposits
certification
Mar. 2022 Obtained
Meister life planningcertification

We are actively engaged in structured finance initiatives with the aimof diversifying funds management. As our outstanding balance grows,
we are diversifying risk through the selection and diversification ofprojects.

Up 71.6 billion yen
year on year

Th e Hyak ujushi Bank , Ltd . Integrated R ep ort 2022

(Billions of yen)

115.3

43.7
2.3

I make various proposals to address thebusiness continuity issues faced by customers.
In my consulting work, I am acutely aware of
the importance of experience and the ability
to grasp the crux of issues, as well as
knowledge, of course. The experience I gained
during my time at Deloitte Tohmatsu Financial
Advisory LLC, where I was placed by the Bank
as a trainee, has proven extremely useful in myeveryday work, and I would like to continue tohone my skills.

March 2022

Outstanding balance of structured financeRisk management, business revitalization, money laundering countermeasures, etc.

1,031

79

March 2021

March 2020

Kenji Kuroda
Assistant Manager, M&A Consulting Team
Consulting Group I
Consulting Division

Shiho Takabatake
Fuji Grand Marugame Sub-Branch
Marugame Branch
My job is to sell asset management products atthe branch. I began to engage in self-improvement after hearing about the 114 Meistersystem. The people around me were very
supportive of my obtaining qualifications, andI now hold two Meister qualifications: deposits
and life planning. I would like to help the
Meister system become better known so that
our customers can feel even more secure in
consulting us.

Duties340.3

Enhanced credit screening

Mid-career recruitment
Qualifications

Up 38.0 billion yen
year on year

(Billions of yen)March 2022

Practicing low-cost management

2014 Joined the Bank
2014 Okayama Branch2022 Consulting Division2020 Qualified as a 1st
grade Certified Skilled
Professional of Financial
Planning
2021 Qualified as a CMA
Mar. 2022 Obtained
Meister corporate
business (currently
consulting) certification

We are endeavoring to control personnel costs and reduce non-personnel costs by eliminating and consolidating branches and improving
operational efficiency.
Number of effective locations down
by seven from previous fiscal year
(Locations)
Reorganization of branch network Effective number of locations
In FY 2021, we consolidated 4 branches
and 4 sub-branches, using the branchwithin a branch approach of relocating
branches, whereby one integrated
branch is placed within anotherintegrated branch. We will continue to
strive for greater efficiency while giving
maximum consideration to customer
convenience.

11

22

31

114

107

100
1,031

79

March 2020
Branches within branches

We have established Quick
Square at some former sites of
consolidated branches tomaintain customer convenience.

March 2021

March 2022

Branches (effective locations) (including Quick Square and branches for transfers)
T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

16

Management foundation underpinning growth

Corporate Governance⃝Overview

We are striving to improve our governance and compliance structures based on the recognition that such efforts are indispensable when it comes to the Bank’s sustainable growth and medium- to long-term enhancement of corporate value. And
in April 2022, the Bank was listed on the Tokyo Stock Exchange Prime Market.

Initiatives to strengthen governance and compliance systems
To strengthen its governance structure, the Bank established the“Nomination and Remuneration Governance Committee” as anadvisory body to the Board of Directors, chaired by Outside Directors who constitute a majority of its membership. The committee
deliberates on the following: nomination of candidate Directors anddismissal of Directors; nomination and dismissal of Representative
Directors; remuneration and other matters concerning Directors notserving as Audit and Supervisory Committee Members; mattersconcerning the assessment of the effectiveness of the Board of
Directors; and other important matters in terms of governance andmanagement. The Board of Directors is to respect the findings of thecommittee.
Furthermore, the Bank appointed a Chief Compliance Officer(CCO), who has the highest responsibility to centrally manage theoverall compliance, in an aim to bolster the compliance systems. In
addition to conducting investigations on compliance and reporting
the results to the Board of Directors, the CCO gives instructions forprompt improvement and response in case of finding any compliance-related problem in measures and responses taken by eachdivision.

Corporate governance framework (as of July 1, 2022)⃝System
Institutional Design

Number of Directors Number of (Independent) Outside Directors Term of Office of Directors Adoption of an Executive Officer System Accounting Auditors

Company with Audit and
15
Supervisory Committee (including 7 Audit and Supervisory Committee Members)

1 year5

Ernst & Young
ShinNihon LLC

Yes(2 years for Audit and Supervisory Committee Members)

Directors not serving as Audit and Supervisory Committee Members

Appointment/Dismissal

Audit/Supervision

Advisory body

Nomination and Remuneration Governance Committee

Appointment/Dismissal

Directors serving as Audit and Supervisory Committee Members

Board of Directors
Appointment/
Supervision/
Dismissal

The Board of Directors consists of 15 Directors (including 5 Outside Directors). In principle, it meets once a month, and also meetsas necessary. In addition to matters stipulated by laws and regulations or the Articles of Incorporation, the Board passes resolutions onimportant matters concerning management and oversees the business execution by Directors.

Audit and Supervisory
Committee

The Audit and Supervisory Committee consists of 7 Directors (including 5 Outside Directors) serving as Audit and Supervisory
Committee Members. In principle, the committee meets once a month, and occasionally as necessary to audit and supervise theexecution of duties by Directors.

Executive Committee
and other committees

The Executive Committee, which consists of Managing Executive Officers and above, holds periodic or occasional meetings as adecision-making body for important matters related to business execution. In addition, the Bank has established a “Sustainability
Committee,” “Revenue Management Committee,” “Risk Management Committee,” and “Compliance Committee,” and set up a system
to make consultation and decisions on specialized matters.

Nomination andRemuneration
GovernanceCommittee(Voluntary committee)

The Nomination and Remuneration Governance Committee is chaired by an Outside Director appointed by mutual election. It iscomprised of the President of the Bank, the Chairperson of the Audit and Supervisory Committee, and Outside Directors, and meetsat least twice per year as a general rule (9 meetings held in FY 2021). As an advisory body to the Board of Directors, the committee
deliberates on the following: nomination of candidate Directors and dismissal of Directors; nomination and dismissal of Representative
Directors; remuneration and other matters concerning Directors not serving as Audit and Supervisory Committee Members; andother important matters in terms of governance and management. The Board of Directors is to respect the findings of the committee.

Executive Officer
SystemIn order to expedite management decision-making and strengthen business execution functions, the Bank has introduced an Executive
Officer System, and 19 Executive Officers (of whom six serve concurrently as Directors) appointed by the Board of Directors, areresponsible for business execution, with the aim of achieving agile decision-making and speedy corporate management.

Auditing Division

From the perspective of maintaining and improving the soundness and appropriateness of operations, the Auditing Division, which isan outside department, also fulfills an internal audit role and conducts inspections of assets and risks as needed, as well as internal
audits of the Head Office and branches as well as subsidiaries etc. to determine whether their operations are conducted appropriately
in accordance with laws and regulations and administrative procedures. The results of audits are reported to the Board of Directors,
the Audit and Supervisory Committee, and others.

Accounting Auditors

The Bank’s Accounting Auditors are Ernst & Young ShinNihon LLC. As Accounting Auditors, they conduct appropriate audits from an
independent standpoint.

▪ Board of Directors and Audit and Supervisory Committee Members (as of July 1, 2022)
Yujiro Ayada

Ryohei Kagawa

Kiichiro Oyama

Masakazu Toyoshima

Hiroyuki Kurokawa

Hideaki Kanamoto

Kazuhito Tada

Masashi Mori

Toshiya Yoritomi

Kazuhiro Kumihashi

Junichi Itoh

Yasuko Yamada

Nobuyuki Souda

Tomoko Fujimoto

Noriyuki Konishi

President(Representative Director)

General Meeting of Shareholders
Appointment/Dismissal

Board of Directors

Director and Managing Executive
Officer

Collaboration/
ReportingDirector and Senior Managing
Executive Officer(Representative Director)

Director and Managing Executive
Officer

Director (Audit and Supervisory
Committee Member)

Audit and Supervisory Committee
Audit/Supervision

Director, Deputy President
and CCO(Representative Director)

Director (Audit and Supervisory
Committee Member)

Director (Audit and Supervisory
Committee Member) (Outside)

Director (Audit and Supervisory
Committee Member) (Outside)

Director and Managing Executive
Officer

Director and Managing Executive
Officer

Director (Audit and Supervisory
Committee Member) (Outside)

Director and Managing Executive
Officer

Director (Audit and Supervisory
Committee Member) (Outside)

Director (Audit and Supervisory
Committee Member) (Outside)

ReportRepresentative Directors▪ Board of Directors skills matrix

Executive Directors

Internal Directors (Executive Directors and Audit and Supervisory Committee Members)

Sustainability
Committee

RevenueManagement
Committee

Risk Management
Committee

Head Office and Branches

Compliance
Committee

Executive
Committee
Internal audit

Instruction

Auditing Division

Outside Directors (Audit and Supervisory Committee Members)

Expected areas of expertise
Name

Accounts
auditInternal Male●

Ryohei Kagawa Internal Male●

Kiichiro Oyama Internal Male●

Masakazu Toyoshima Internal Male●

Yujiro Ayada

Accounting Auditors

●

●
●

●
●

Hideaki Kanamoto Internal Male●

Kazuhito Tada

Internal Male●●

Masashi MoriInternal Male

●

●

●

●

●

Junichi Itoh

Outside Male
Independent

Yasuko Yamada

Outside Female
Independent
Outside Male●

Corporate
management

FinanceFinancialaccounting

●

●

●

●

Nobuyuki Souda Independent●

Noriyuki Konishi Independent

Regional
revitalization●●●

Tomoko Fujimoto Independent

Outside Male

●

Legal
affairs●

Outside Female●●

Toshiya Yoritomi Internal Male●●

Hiroyuki Kurokawa Internal Male

Kazuhiro Kumihashi Internal Male

Expected areas of expertise
NameManagement Business
Risk
Human
IT/DX
control operation management resources strategy●●(Note) The above skills matrix does not represent all the expertise and experience each Director has.

17

Th e Hyak ujushi Bank , Ltd . Integrated R ep ort 2022

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

18

Risk Management
While the growing globalization of economic and financial affairs, together with the increasing sophisticationof financial technology, are creating new business opportunities for financial institutions, the risks faced byfinancial institutions are also becoming more varied and complex. We regard sophisticated risk management
techniques as being of primary importance for maintaining the soundness of a bank’s business, and we also recognize the importance of appropriate responses to changing customer needs. To achieve these goals, we makeevery effort to properly recognize, assess and manage risks.
Efforts toward Comprehensive Risk Management

Basic concepts of risk management

Risk Management Framework

Banking operations are facing a variety of risks, including
credit risk, market risk, liquidity risk, and operational risk.
We apply proper management to each risk depending on thecharacteristics of the operation and the risk. By ascertaining
risks in a comprehensive manner and comparing them to ourlevel of capital adequacy, we strive to achieve soundness andstability in our overall management and also to improve theefficiency of our operations: in other words, to practice integrated risk management.
Moreover, our basic policies on overall and specific risk
management are determined by the Board of Directors foreach financial year, and through implementation of measuresfor each category of risk in accordance with these policies, we
strive to achieve sophisticated risk management on an ongoingbasis.

We have defined the types of risks to manage in our risk
management rules, drawn up by the Board of Directors. We
then determine the category to which each risk belongs, anddecide the divisions responsible for managing each category,along with management rules. We have also established an
independent Risk Control Division to integrate risk management and carry out comprehensive management.
Additionally, through the establishment of the Risk Management Committee and subcommittees for each risk category as organizations under the Committee, andcross-sectional consultations on matters regarding risk management on a regular basis, we have put in place a highlysophisticated framework for the maintenance and management of risk.

General Meeting of Shareholders
Board of Directors
Risk Management Committee
Overall Risk
Control Divisions

Risk Control Division

Credit Risk Management
Subcommittee

Market Risk Management
Subcommittee

Conduct Risk*

Operational Risk
Management Subcommittee
Climate Change Risk**The Bank will consider the impact of these risks in terms of their close association with the risks below.

Risk Management
DivisionsCredit Risk

Market Risk

Liquidity Risk

Operational Risk

Risk Control Division

Risk Control Division

Treasury andInternational Division

Risk Control Division

Each division, office, branch
Subsidiaries

19

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

Risk Classification

Outline of Risks

Auditing
Division

Division in Charge

Credit Risk

Risk of reduction in the value of assets or their loss altogether due to deteriorating financial
position at customers to which the Bank has granted credit

Market Risk

Risk of suffering loss due to volatility of financial assets and liabilities resulting from financial
market fluctuation

Interest Rate Risk

Risk of reduced profits or total losses due to changes in interest rates arising because of discrepancies in interest rates on assets and liabilities, and in instrument maturities

Foreign Exchange Risk

Risk of suffering loss due to a decrease in the yen-converted amount of foreign currency denominated assets and liabilities due to exchange market fluctuations

Price Volatility Risk

Risk of a fall in asset values due to changes in the value of securities

Risk Control Division

Risk Control Division

Liquidity Risk

Risk of suffering loss from difficulty in procuring necessary funds or abnormally high interest raterequirements in securing funds, due to causes such as unforeseen outflows of funding or turmoil
in financial markets

Treasury andInternational Division

Operational Risk

Risk of suffering loss due to inappropriate or malfunctioning internal processes, personnel conduct or IT systems, or external factors

Risk Control Division

Process Risk

Risk of suffering loss due to or by executives’ or employees’ failure to perform duties, or to
improper outside intervention

System Risk

Risk of suffering loss due to partial or complete system breakdown, malfunction, system deficiency, or improper use of the computer system

Legal Risk

Risk of losses due to the violation of laws and ordinances and contracts and signing of inappropriate contractual commitments

Compliance Management
Division

Human Resources Risk

Risk of losses caused by labor malpractice, workplace safety and environmental hygiene deficiencies and risk of employer liability in the event of illegal behavior by Bank employees

Personnel Division

Tangible Asset Risk

Risk of suffering loss due to damage to assets resulting from disaster or defective asset
management

General Administration
Division

Operations Supervision
Division

Conduct Risk

Risk of damage to the Bank’s credibility as a result of behavior or actions by the Bank or its officers or employees that fail to meetthe fair and reasonable expectations of the Bank’s customers and counterparties, employees, society in general, shareholders, orothers, and cause losses to these stakeholders or damages their interests

Climate Change Risk

Risk of impact on the soundness and stability of business management from the physical risks or transition risks associated withclimate change, materializing in the form of other risks

Practice of comprehensive risk management
We have introduced a framework for risk-adjusted capital
allocation in which the credit and market risks inherent inbanking operations are quantified; capital corresponding torisk amount (risk-adjusted capital) is allocated for each risk
category, and risks are controlled within risk-adjusted capital,
to earn revenues that correspond to the risks while keeping
overall risks within our management capacity. Under thisframework, based on the amount of equity capital (core capital) less the operational risk equivalent amount, risk-adjusted
capital to cover credit and market risk is allocated each halfyear and the changes in risk trends and the risk-return balance
are monitored, enabling ascertainment and management ofrisk-adjusted profitability and efficiency.

Risk Management Framework

Audit and Supervisory Committee

Risks Subject to Management

In addition, stress tests are conducted on a regular basis andthe impact that major changes in the economic and market
environments have on Bank profits and management stability
is monitored, and the management soundness is also assessed.

Definitions
Core capital:
Equity capital established under Basel III (domestic standard)
Operational risk equivalent amount:
Calculated using the Basic Indicator Approach
Return on risk-adjusted capital (RORAC):
Profit and loss indicator, arrived at by deducting expenses, deemed allowancecosts and capital costs from gross operating profits

Risk Audit System
In order to enhance and strengthen risk management, it isnecessary to verify whether the risk management system isfunctioning effectively. The Audit Department periodically
audits the operations of the Bank’s head office, subsidiaries
and branches to verify the adequacy of the risk management
system.

In this way, the Bank is committed to the development of arisk management system that will enable us to manage a variety of risks appropriately and to identify and address issues at
an early stage in order to gain the trust of our customers.

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

20

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Consolidated Balance Sheets

Compliance System

2022

2021

Thousands of U.S. dollars(Note 1)2022

¥1,115,997
9,730
28,445—
1,274,877
3,159,889
6,236
21,26575,424
37,134
4,654
8,276
737
22,881(18,285)¥5,747,266¥  893,016—
23,59813
1,272,943
3,035,782
9,429
22,866
63,24337,368
5,041
7,721
777
21,938(18,172)¥5,375,569$ 9,118,367
79,499232,412—
10,416,512
25,818,195
50,951
173,747
616,259
303,407
38,02567,6196,021
186,951(149,399)$46,958,624

Basic Policy

Millions of yen
As of March 31

Regional financial institutions have highly public and social nature and bear the social mission of contributing to the development of asound regional economy. The Bank strives to practice thorough compliance as one of the top priorities in its management in order to
win trust from customers, local residents, and shareholders. Specifically, we ensure that each officer and employee execute their duties
in compliance with laws, regulations, and other rules, while they take actions based on high level of ethics.

Compliance System

Compliance System

At the Bank, under the oversight of CCO (Chief Compliance
Officer), who has the highest responsibility for compliance, theCompliance Management Division centrally manages all compliance-related issues. We also appoint a manager or a person in
charge at each department, office, and branch to put into practice and instill compliance, while aiming to spread complianceculture by checking the compliance status with a checklist andconducting study sessions. Furthermore, the Compliance Committee, chaired by the CCO, holds cross-organizational discussions to improve and upgrade the system.

Audit and Supervisory
Committee

Board of Directors

Compliance Committee(Chairman: CCO)

Executive Committee

Compliance Management Division
Instructions

Educationother relevant policies, and strives to enhance its anti-money
laundering system. Furthermore, we have in place an antimoney laundering policy and disclose it on our website.

The Hyakujushi Bank, Ltd. (hereinafter, “the Bank”) strongly
recognizes the importance of measures to prevent money
laundering and terrorism financing (hereinafter, “money
laundering”). In response to stern demands from the international community, the Bank regards the prevention ofmoney laundering as one of the important issues in its management strategy and other relevant policies, and will build
an internal control system as described below to conduct
the Bank’s business on that basis.

Customer management policy• To protect our customers from money laundering, theBank will determine and implement risk reduction measures to be taken and appropriately manage customers, bycreating a customer acceptance policy, as well as investigating and analyzing customer information and transaction
details.

Risk-based approach• The Bank will identify and assess its own risks pertaining tomoney laundering, and take measures commensurate withthe risks in order to effectively reduce them.

21

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

2021

¥4,558,239
74,57623,254
12,696700,615
321
58,400
57
208
39
125
107
147
6,180
5,077
22,881
5,462,929¥4,440,571
84,721
12,08956,643393,331
1,341
55,302
20
204
49
247
127
123
12,074
5,082
21,9385,083,870$37,243,557
609,330
189,999
103,733
5,724,446
2,622
477,163
465
1,699
318
1,021
874
1,201
50,494
41,482
186,951
44,635,419

37,32230,486
183,444(2,030)249,223

37,32230,486
173,620(2,071)
239,357

304,943
249,088
1,498,847(16,586)
2,036,301

25,891
2,611
7,927(1,339)35,091
21
284,336¥5,747,266

42,595
2,720
7,928
(945)
52,29941
291,699¥5,375,569

211,545
21,33364,768(10,940)
286,714171
2,323,196$46,958,624
U.S. dollars(Note 1)
2022

Millions of yen
As of March 31

In response to stern demands from the international community, the Bank regards the prevention of money laundering as
one of the important issues in its management strategy andOrganizational structure• The Bank will build a centralized management system bydesignating a person and a department responsible foranti-money laundering measures. In addition, we will
advance our measures across the organization through the
involvement of management.

2022

Thousands of U.S. dollars(Note 1)
2022

Head Office, Branches

Anti-Money Laundering Policy

Operation policy• The Bank will comply with anti-money laundering laws
and regulations.

Assets:Cash and due from banks
Call loans and bills bought
Monetary claims bought
Trading account securities
Securities (Notes 6, 8, 9 and 10)
Loans and bills discounted (Notes 8, 10 and 11)
Foreign exchange assets (Note 8)
Lease receivables and investments in leases
Other assets (Notes 8 and 10)
Tangible fixed assets (Notes 13 and 14)
Intangible fixed assets
Net defined benefit asset
Deferred tax assets
Customers’ liabilities for acceptances and guarantees (Note 8)
Reserve for possible loan losses
Total assets

Notification of suspicious transactions• The Bank will build a system utilizing IT systems and othertools to accurately detect, monitor, and analyze suspicious
customers and transactions, while notifying authorities
without delay in case of suspected money laundering.
Management of correspondent banks• The Bank will collect information on correspondent banks,
evaluate it properly, and take appropriate measures according to risks. In addition, we will cut off relationships withfictitious banks that have no actual status.
Training for officers and employees• The Bank will provide appropriate and continuous training
to all officers and employees to deepen their professional
understanding of anti-money laundering as a wholeorganization.
Internal audit• The Bank’s internal audit department with an independent
standpoint, conducts regular audits on the status of the Bank’s
anti-money laundering and other preventive measures, andwill improve the Bank’s system based on the audits results.

Liabilities and net assets
Liabilities:
Deposits (Note 10)
Negotiable certificates of deposit
Call money and bills soldPayables under securities lending transactions (Note 10)
Borrowed money (Notes 10 and 30)
Foreign exchange liabilities
Other liabilities
Reserve for bonuses for directors and corporate auditors
Net defined benefit liability
Reserve for retirement benefits for directors and corporate auditors
Reserve for claims on dormant accounts
Reserve for contingent liabilities
Reserve for stock-based compensation plan
Deferred tax liabilities
Deferred tax liability for land revaluation (Note 14)
Acceptance and guarantees
Total liabilities
Net assets :Stockholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
Accumulated other comprehensive income:Net unrealized gains on available-for-sale securities, net of taxes
Net deferred gains on hedging instruments, net of taxes
Revaluation reserve for land (Note 14)
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share subscription rights
Total net assets
Total liabilities and net assets

Yen
As of March 31

2022

2021

Per share
Net assets¥9,639.96¥9,892.54$78.764

See accompanying notes to consolidated financial statements.

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

22

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Consolidated Statements of Income

Consolidated Statements of Changes in Net Assets
Millions of yen

For the years ended March 31

Income:Interest on loans and bills discounted
Interest and dividends on securities
Other interest income
Fees and commissions
Other operating income
Other income (Note 17)
Total income
Expenses:
Interest on deposits and negotiable certificates of deposit
Interest on call money and bills soldInterest on borrowed money
Other interest expenses
Fees and commissions
Other operating expenses
General and administrative expenses (Note 18)
Other expenses (Note 19)
Total expenses
Profit before income taxes
Income taxes :Current
Deferred
Subtotal
ProfitProfit attributable to owners of parent

2021

2022

¥26,513
13,167
1,454
12,191
7,361
12,457
73,147¥26,792
13,208652
11,647
3,959
12,72868,989$216,627
107,582
11,88099,60760,143
101,781597,655

524
94
160
728
3,052
7,931
35,204
10,411
58,10815,039

682
112
379
1,110
3,249
3,905
37,046
17,39063,877
5,111

4,281
768
1,307
5,948
24,93664,801
287,637
85,064
474,777
122,877

1,705
1,631
3,336
11,702¥11,702

3,402
(855)
2,546
2,565
¥ 2,565

13,93013,32627,257
95,612$ 95,612

Per share
Basic earnings

2021

2022

¥396.83

For the years ended March 31
Balance as of March 31, 2020

¥ 86.95$3.242

See accompanying notes to consolidated financial statements.

Dividends from surplus
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Transfer from revaluation reserve for land
Net changes in items other than stockholders’equityTotal changes in items during the period
Balance as of March 31, 2021
Cumulative effects of changes in accounting
policies
Restated balance
Dividends from surplus
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Transfer from revaluation reserve for land
Net changes in items other than stockholders’equityTotal changes in items during the period
Balance as of March 31, 2022

For the years ended March 31
Balance as of March 31, 2020

Purchase of treasury stock
Disposal of treasury stock

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Consolidated Statements of Comprehensive Income
Millions of yen

Transfer from revaluation reserve for land
Net changes in items other than stockholders’equityTotal changes in items during the period

Thousands of U.S. dollars(Note 1)2022

For the years ended March 31

2022

2021

ProfitOther comprehensive income (loss) (Note 20)
Net unrealized gains (losses) on available-for-sale securities, net of taxes
Net deferred gains (losses) on hedging instruments, net of taxes
Remeasurements of defined benefit plans
Total comprehensive income (loss)
Total comprehensive income (loss) attributable to:
Owners of parent¥ 11,702(17,207)(16,703)
(109)
(394)
¥ (5,504)¥ 2,565
41,741
27,547
10,167
4,026¥44,306$ 95,612(140,591)(136,473)(890)(3,219)$ (44,970)¥ (5,504)¥44,306$ (44,970)

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

Retainedearnings

Treasury stock

Total
stockholders’equity¥37,322¥30,486¥173,374¥(1,999)¥239,184

—
—
—
—
—

—
—
—
—
—

(2,366)
2,565
—
—
47

—
—
(72)
—
—

(2,366)
2,565
(72)
—
47

—

—

—

—

—

—
¥37,322—¥30,486

246¥173,620(72)¥(2,071)

173¥239,357

—

—

(97)

—

(97)

¥37,322¥30,486¥173,523¥(2,071)¥239,260

—
—
—
—
—

—
—
—
—
—

(1,774)
11,702
—
(7)
0

—
—
(1)
43
—

(1,774)
11,702
(1)
36
0

—

—

—

—

—

—
¥37,322—¥30,486

9,921¥183,44441¥(2,030)

9,963¥249,223

Net unrealized
gains onavailable-forsale securities,
net of taxes

Millions of yen
Accumulated other comprehensive income
Total
Net deferred
accumulated
gains (losses)
Remeasurements
otheron hedging
Revaluationof defined benefit comprehensive
instruments,
reserve forplans
incomenet of taxes
land

Share
subscription
rightsTotal net
assets¥15,048¥ (7,447)¥7,976¥(4,971)¥10,605¥41¥249,831

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

(2,366)
2,565
(72)
—
47

27,54727,547¥42,595

10,167
10,167¥ 2,720(47)(47)¥7,9284,026
4,026¥  (945)

41,694
41,694¥52,299——¥41

41,694
41,867¥291,699

—

4

—

—

4

—

(93)

¥42,595¥ 2,724¥7,928¥  (945)¥52,303¥41¥291,605

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

(1,774)
11,702(1)36
0(16,703)(16,703)¥25,891

(113)
(113)
¥ 2,611(0)(0)¥7,927(394)(394)¥(1,339)(17,212)(17,212)¥35,091

(19)
(19)
¥21

(17,231)(7,268)¥284,336

Changes in items during the period
Dividends from surplus

23

Capitalsurplus

Changes in items during the period

Profit attributable to owners of parent

See accompanying notes to consolidated financial statements.

Commonstock

Changes in items during the period

U.S. dollars(Note 1)
2022

Yen
For the years ended March 31

Millions of yen
Stockholders’ equity

Thousands of U.S. dollars(Note 1)
2022

Balance as of March 31, 2021
Cumulative effects of changes in accounting
policies
Restated balance
Changes in items during the period
Dividends from surplus
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Transfer from revaluation reserve for land
Net changes in items other than stockholders’equityTotal changes in items during the period
Balance as of March 31, 2022

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

24

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Consolidated Statements of Cash FlowsThe Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Consolidated Statements of Changes in Net Assets

2022

2021

Thousands of U.S. dollars(Note 1)2022¥   15,039
3,249
72
113
36
(1,121)
4
(9)
(121)
(20)
24
(41,136)
1,508
3,343
(17,619)(279)
13(124,107)
117,668(10,145)
307,28368(14,576)
11,164(43,947)
3,193(1,020)1,601
40,944(1,503)
7,962
257,681(3,759)253,921¥   5,111
3,331
161
775
(8)
(223)
6
11
(117)
0
42
(40,653)
2,286
6,094
(9,313)(454)(8)(188,465)
375,488(5,464)87,723
267
5,665(22,692)(56,056)
364
1,045
1,619
40,267(2,836)
15,971
219,938(3,585)
216,353$   122,877
26,546588
923
294(9,159)
32
(73)
(988)
(163)
196
(336,105)
12,321
27,314(143,957)(2,279)106(1,014,028)
961,418(82,890)2,510,687
555(119,094)
91,216(359,073)
26,088(8,334)13,081
334,537(12,280)
65,0542,105,408(30,713)2,074,687(713,439)
440,070
246,559(1,358)(1,322)
384(29,105)(543,029)
408,491
164,212(1,780)(1,046)507
27,355(5,829,226)
3,595,636
2,014,535(11,095)(10,801)
3,137(237,805)(1)
3(1,774)(1,772)(72)—(2,366)(2,438)(8)
24(14,494)(14,478)7
223,050
863,671¥1,086,721

2
241,272
622,399¥ 863,671

57
1,822,452
7,056,712$ 8,879,164

Thousands of U.S. dollars (Note 1)

Millions of yen

Stockholders’ equity
CapitalsurplusRetainedearnings

Balance as of March 31, 2021
Cumulative effects of changes in accounting
policies$304,943$249,088$1,418,579

—

—

(792)

Restated balance$304,943$249,088$1,417,787

Transfer from revaluation reserve for land

—
—
—
—
—

—
—
—
—
—

(14,494)
95,612
—
(57)
0

—
—
(8)
351
—

(14,494)
95,612(8)294
0Net changes in items other than stockholders’equity

—

—

—

—

—

—
$304,943—$249,088

81,060$1,498,847

For the years ended March 31

Treasury stock

For the years ended March 31

Total
stockholders’equityCommonstock$(16,921) $1,955,690
—

(792)

$(16,921) $1,954,898

Changes in items during the period
Dividends from surplus
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock

Total changes in items during the period
Balance as of March 31, 2022

334
81,403$(16,586) $2,036,301

Thousands of U.S. dollars (Note 1)
Accumulated other comprehensive income
Net unrealized
gains onavailable-forsale securities,
net of taxes

Net deferredgains (losses)on hedging
instruments,
net of taxes

Revaluation
reserve forland

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeSharesubscription
rightsTotal net
assetsBalance as of March 31, 2021
Cumulative effects of changes in accounting
policies$348,026$22,224$64,776$ (7,721)$427,314$334$2,383,356

—

32

—

—

32

—

(759)

Restated balance$348,026$22,256$64,776$ (7,721)$427,347$334$2,382,588

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

(14,494)
95,612(8)294
0(136,473)

(923)

(0)

(3,219)(140,632)(155)(140,787)(136,473)$211,545(923)$21,333(0)$64,768(3,219)$(10,940)(140,632)$286,714(155)(59,383)$171 $2,323,196

For the years ended March 31

Changes in items during the period
Dividends from surplus
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Transfer from revaluation reserve for land
Net changes in items other than stockholders’equityTotal changes in items during the period
Balance as of March 31, 2022

See accompanying notes to consolidated financial statements.

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Net change in reserve for possible loan losses
Net change in reserve for bonuses for directors and corporate auditors
Net change in net defined benefit asset
Net change in net defined benefit liability
Net change in reserve for retirement benefits for directors and corporate auditors
Net change in reserve for claims on dormant accounts
Net change in reserve for contingent liabilities
Net change in reserve for stock-based compensation planInterest income
Interest expenses
Net loss related to securities transactions
Net gain related to foreign exchange
Net gain on disposal of fixed assets
Net change in trading account securities
Net change in loans and bills discounted
Net change in deposits
Net change in negotiable certificates of deposit
Net change in borrowed money excluding subordinated borrowings
Net change in due from banks other than Bank of Japan
Net change in call loans and others
Net change in call money and others
Net change in payables under securities lending transactions
Net change in foreign exchange assets
Net change in foreign exchange liabilities
Net change in lease receivables and investments in leases
Proceeds from fund operations
Payments on fund procurement
Other
Subtotal
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from sales of securities
Proceeds from redemption of securities
Purchases of tangible fixed assets
Purchases of intangible fixed assets
Proceeds from sales of tangible fixed assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury stock
Proceeds from sales of treasury stock
Dividends paid
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 3 (16))
See accompanying notes to consolidated financial statements.

25

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

26

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements
1. Basis of presenting consolidated financial
statements(c) Lease assets
Lease assets held by the Bank are depreciated over the leasing contract periodsby the straight-line method with residual value at zero.

2. Fiscal year ends

(6) Reserve for possible loan losses
Reserve for possible loan losses is provided as follows, based on the defined rules
for write-offs and provisioning.
Reserve for possible loan losses for bankrupt or substantially bankrupt
borrowers is provided based on the amount after deducting the collectible
portion, based on the fair value of any underlying collateral or guarantees,
except for a portion written-off, as explained below.
Reserve for possible loan losses for borrowers not currently bankrupt but
likely to go bankrupt is provided considering the overall solvency assessment
after deducting the collectible portion, based on the fair value of any underlying
collateral or guarantees.
Reserve for possible loan losses on loans other than the above is provided
principally at the amounts of expected losses over the next 1 year or 3 years,
which are determined by making necessary adjustments considering forecasts ofloss rates calculated based on the average historical default rates corresponding
to a certain period consistent with those for 1 year or 3 years.
In accordance with the Bank’s asset self-assessment standards, loans areassessed by branch staff and head office staff in charge of inspection, the resultsof which are audited by independent staff in charge of audits. Provision is madeto reflect these assessment procedures.
In the case of loans to borrowers who are bankrupt or substantiallybankrupt, the amount remaining after deduction of the amount of collateralconsidered to be disposable and the amount recoverable under guarantees is set
off from the original outstanding loan balance. The amount of such write-offs
totaled ¥8,906 million ($72,767 thousand) and ¥11,141 million as of March
31, 2022 and 2021, respectively.
A reserve for possible losses on ordinary loans held by the Bank’s
consolidated subsidiaries is provided based on loan loss experience as calculatedusing the historical default rates. A reserve for possible losses on specific loans
held by the Bank’s consolidated subsidiaries is provided based on the amountdeemed irrecoverable after careful examination of the recoverability of the loans
in question on an individual basis.

The accompanying consolidated financial statements of The Hyakujushi Bank,
Ltd. (hereinafter the “Bank”) and its consolidated subsidiaries (hereinaftercollectively the “Group”) are prepared on the basis of accounting principles
generally accepted in Japan, which are different in certain respects as to theapplication and disclosure requirements of International Financial ReportingStandards, and are compiled from the consolidated financial statements
prepared by the Bank as required by the Financial Instruments and Exchange Act
of Japan.
The Japanese yen figures in the consolidated financial statements are in
millions, with fractions omitted.
The translation of the Japanese yen amounts into U.S. dollars is included
solely for the convenience of the reader, using the prevailing exchange rate at
March 31, 2022, which was ¥122.39 to U.S.$1.00. The conveniencetranslations should not be construed as representations that the Japanese yenamounts have been, could have been, or could in the future be, converted into
U.S. dollars at this or any other rate of exchange.

The account closing date of the Bank and its consolidated subsidiaries is thesame.

3. Significant accounting policies(1) Consolidation
The consolidated financial statements include the accounts of the Bank and all 9
subsidiaries.
There are no affiliates accounted for by the equity method as of March 31,
2022.
Shikoku Alliance Capital Co., Ltd. and SHIKOKU BRAND inc. are affiliates
not accounted for by the equity method. Affiliated companies not accounted forby the equity method are excluded from the scope of the equity method because
the Bank’s interests in their respective amounts of net profits or losses, retained
earnings or other accumulated comprehensive income do not have a material
impact on the consolidated financial statements.
(2) Trading account securities
Under the Accounting Standards for Financial Instruments, trading accountsecurities are stated at fair value (cost of sales is calculated by the movingaverage cost method).
(3) Securities
Held-to-maturity debt securities are stated at amortized cost using the movingaverage cost method. Investments in affiliates not accounted for by the equity
method are stated at cost by the moving-average cost method. Available-for-salesecurities are stated at fair value (cost of sales is calculated by the movingaverage cost method), whereas shares, etc. that do not have a market price arestated at cost by the moving-average cost method.
Unrealized gain or loss on available-for-sale securities (net of the related tax
effect) has been reported as a component of net assets.
(4) Derivatives
Under the Accounting Standards for Financial Instruments, derivatives arestated at fair value.
(5) Depreciation(a) Tangible fixed assets (excluding lease assets)
Depreciation of tangible fixed assets is calculated principally using the decliningbalance method (However, the straight-line method is used for facilities attached
to buildings and structures acquired on or after April 1, 2016). Useful lives oftangible fixed assets are as follows:
Buildings: 10 to 50 years
Equipment: 5 to 15 years
Tangible fixed assets held by the consolidated subsidiaries are depreciated, inprinciple, by the declining-balance method, based on the respective estimateduseful lives of the assets.
(b) Intangible fixed assets (excluding lease assets)
Intangible fixed assets are amortized by the straight-line method. Depreciationof software for internal use is calculated using the straight-line method over theuseful lives (principally 5 years).

27

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

(7) Reserve for bonuses for directors and corporate auditors
A provision is made for the payments of bonuses to directors and corporate
auditors of the Bank based on an estimated amount deemed necessary.
(8)	Reserve for retirement benefits for directors and corporate
auditors
In order to provide for the payment of retirement benefits to directors andcorporate auditors of consolidated subsidiaries, a provision is made based on theestimated amount incurred at the end of the consolidated reporting period.
(9) Reserve for claims on dormant accounts
A provision is made for losses on claims on dormant accounts in the future in an
amount deemed necessary, taking into account the Bank’s historical refund
record.
(10) Reserve for contingent liabilities
A provision is made for an estimated amount considered necessary for losses
which may occur in the future due to contingencies other than those covered forin other reserves.
(11) Reserve for stock-based compensation plan
In order to provide for the delivery of the Bank’s shares from the BIP Trust, aprovision is made for an estimated amount of benefits corresponding to thenumber of points allotted to directors in accordance with BIP Trust’s sharedelivery rules.

(12) Accounting method for retirement benefits
To calculate retirement benefit obligations, the Bank used the benefit formula asa method for attributing estimated retirement benefits over the period until
March 31, 2022. The amortization method for prior service costs and actuarial
differences is as follows:
Prior Service Costs:
Prior service costs are charged fully to income at the time of occurrence.
Actuarial Differences:
Actuarial differences of the plans are to be amortized from the fiscal year
following their occurrence by the straight-line method over a fixed period of 10
years, which is within the average remaining service period of the employees at
the time of occurrence in each fiscal year.
In calculating net defined benefit liability and retirement benefit costs, someconsolidated subsidiaries apply a simplified method that provides theirretirement benefit obligation at an amount to be paid for voluntary termination
at the balance sheet date.
(13) Accounting standards for posting of significant earnings andexpenses(a) Finance lease transactions
The corresponding amounts are recognized in “Other income” and “Other
expenses” at the time of receipt of lease payments.
(b) Revenue from contracts with customers
Revenue from contracts with customers is the revenue recognized from service
provision related to financial services such as deposit and loan services, foreign
currency exchange services, and securities-related services, and is recognized at
the amount expected to be received in exchange for goods or services whencontrol of such goods or services promised by such service provision istransferred to the customer.
(14) Foreign currency translation
Receivables and payables in foreign currencies are translated into Japanese yen
primarily at the year-end rates. Translation differences arising from availablefor-sale securities (bonds), including the effect of changes in exchange rates, areaccounted for as net unrealized gains/losses on available-for-sale securities.
(15) Hedge accounting(a) Hedges against interest rate fluctuations
The Bank applies the deferred hedge accounting method to interest rate swaps
used to hedge interest rate risk on certain financial assets when the critical termsof the underlying hedged items (Japanese Government Bonds and U.S. Treasury
Bonds) and hedging instruments (interest rate swap transactions) match.
Evaluation of hedge effectiveness is omitted as material terms related to thehedged items and hedging instruments are substantially identical and the market
fluctuations or cash flow fluctuations are offset at the time of commencement
and continuously thereafter.
(b) Hedging against currency fluctuations
The Bank applies the deferred hedge accounting stipulated in the basic
provisions of JICPA Industry Committee Practical Guideline No. 25 issued on
October 8, 2020 to currency swap and foreign exchange swap transactions
executed for the purpose of lending or borrowing funds in different currencies.
Pursuant to JICPA Industry Committee Practical Guideline No. 25, theBank assesses the effectiveness of currency swap and foreign exchange swap
transactions executed for the purpose of offsetting the risk of changes incurrency exchange rates by verifying that there are foreign currency monetaryclaims and debts (foreign securities and foreign currency loans) corresponding
to the foreign-currency positions.
Hedge transactions to which “Treatment of Hedge Accounting for Financial Instrumentsthat Reference LIBOR” is appliedAmong the above hedge transactions, all hedge transactions included in thescope of application of “Treatment of Hedge Accounting for Financial
Instruments that Reference LIBOR” (ASBJ Revised Practical Solution No.40,
March 17, 2022) are subject to the exceptional treatment prescribed in the
Revised Practical Solution. The details of hedge transactions to which the
Revised Practical Solution is applied are as follows.
Hedge accounting method: Deferred hedge accounting
Hedging instruments: Interest rate swaps
Hedged items: Securities
Types of hedge transactions: Offset market fluctuations(16) Statements of cash flows
The reconciliations between cash and due from banks in the consolidatedbalance sheets and cash and cash equivalents in the consolidated statements ofcash flows are as follows:
Thousandsof U.S.
Millions of yen
dollars
March 31
2021
2022
2022
Cash and due from banks............. ¥1,115,997 ¥893,016 $9,118,367
Time deposits with banks other(27,540) (225,018)(27,540)than Bank of Japan..................
Deposits with banks other than
(601)
(574)
(4,689)Bank of Japan........................
(1,203)
Other....................................
(1,161)(9,486)
Cash and cash equivalents...... ¥1,086,721 ¥863,671 $8,879,164(17) Other significant accounting policies adopted
Net gains and losses from the cancellation and redemption of investment trusts(excluding ETF) are included in “Interest and dividends on securities” in the caseof gains for the investment trusts as a whole, and included in “Loss onredemption of bonds” under “Other operating expenses” in the case of losses.
Gains on cancellation and redemption of investment trusts of ¥3,092
million ($25,263 thousand) and ¥3,196 million were recorded in “Interest anddividends on securities” for the fiscal years ended March 31, 2022 and 2021,
respectively.
(18) Significant accounting estimates
Reserve for possible loan losses(i)	Amounts recognized in the consolidated financial statements at the end of
fiscal year
Reserve for possible loan losses: ¥18,285 million ($149,399 thousand) and¥18,172 million as of March 31, 2022 and 2021, respectively.
(ii)	Information on the nature of significant accounting estimates for identified
items(1)	Method used in making the accounting estimates
The collectability of loans and other receivables fluctuates depending on
factors such as domestic and international economic trends, the businessconditions of the borrowers operating in areas where the Bank’s wide-area
network exists, mainly in its home prefecture of Kagawa, the decline in thevalue of real estate used as collateral, and the status of the novel coronavirus
disease (COVID-19) outbreak. For this reason, the Bank calculates theamount of expected losses from future bad debts for each borrower category
and records it as reserve for possible loan losses.
The method of calculating the reserve for possible loan losses is
described in “3. Significant accounting policies (6) Reserve for possible loan
losses.”(2)	Key assumptions used in making accounting estimates
The main assumptions used in the calculation of the reserve for possible loan
losses are “the future business prospects of each borrower in determining theborrower classification” and “when the COVID-19 pandemic will end.”
The “future business prospects of each borrower in determining theborrower classification” consist of the assessment of changes in the local
economy and the individual evaluation of debt repayment capacity of eachborrower based on the progress of each borrower’s management
improvement plan and other factors.
Meanwhile, “when the COVID-19 pandemic will end” takes into
consideration the impact on each borrower, based on the assumption that the
pandemic will end in the next year or so with the expansion of vaccinations
and that economic activities will gradually normalize against the backdrop of
aggressive fiscal policies by the national and local governments.
(3)	Impact on the consolidated financial statements for the next fiscal year
The above “2) Key assumptions used in making accounting estimates” issubject to uncertainty as it will be affected by changes in the businessenvironment surrounding the borrowers and the success or failure of theirbusiness strategies. Therefore, in the event of an unexpected deterioration in
the business conditions of major borrowers or a worsening of the COVID19 outbreak that affects the assumptions used for the initial estimate, there
may be a significant impact on the reserve for possible loan losses in the
consolidated financial statements for the next fiscal year.

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

28

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements(19) Changes in accounting policies(a) Adoption of “Accounting Standard for Revenue Recognition”
The Group has applied the “Accounting Standard for Revenue Recognition”(ASBJ Statement No. 29, March 31, 2020; hereinafter “Revenue Recognition
Standard”) and other standards from the beginning of the current fiscal year. The
Group recognizes revenue at the amount expected to be received in exchange
for goods or services when control of such promised goods or services istransferred to the customer.
The Group applies the Revenue Recognition Standard, etc. in accordancewith the transitional treatment provided for in the proviso to Paragraph 84 of
the Revenue Recognition Standard. The cumulative impact of retrospectively
applying the new accounting policies to prior periods is reflected as an
adjustment to retained earnings at the beginning of the current fiscal year, with
the new accounting policies applied from the beginning balance.
The impact of this change on the consolidated financial statements for thecurrent fiscal year is immaterial.
In accordance with the transitional treatment set forth in Paragraph 89-3 ofthe Revenue Recognition Standard, notes on revenue recognition for theprevious fiscal year are not presented.
(b) Adoption of “Accounting Standard for FairValue Measurement”
The Group has applied the “Accounting Standard for Fair Value Measurement”(ASBJ Statement No. 30, July 4, 2019; hereinafter “Fair Value Measurement
Standard”) and other standards from the beginning of the current fiscal year. In
accordance with Paragraph 8 of the Fair Value Measurement Standard, theGroup has revised its method of adjusting the fair value of derivatives tomaximize the use of observable inputs estimated from derivatives and other
instruments traded in the market. This revision is due to the application of the
Fair Value Measurement Standard, and in accordance with the transitional
treatment provided in the additional clause in Paragraph 20 of the Fair Value
Measurement Standard, the cumulative impact of retrospectively applying the
new accounting policies to prior periods is reflected in retained earnings at the
beginning of the current fiscal year.
As a result, the beginning balance of retained earnings decreased by ¥54
million ($441 thousand), other assets decreased by ¥132 million ($1,078
thousand), other liabilities decreased by ¥60 million ($490 thousand), deferred
tax liabilities decreased by ¥22 million ($179 thousand), net deferred gains on
hedging instruments, net of taxes increased by ¥4 million ($32 thousand), andnet assets per share decreased by ¥1.71 ($0.013).
In addition, the Group will include notes on fair value information by levelwithin the fair value hierarchy in the notes on financial instruments. However, in
accordance with the transitional treatment provided in Paragraph 7-4 of the“Implementation Guidance on Disclosures about Fair Value of Financial
Instruments” (ASBJ Guidance No. 19, July 4, 2019), notes pertaining to theprevious fiscal year are not presented.
(20) Accounting Standards Issued but Not Effective“Implementation Guidance on Accounting Standard for FairValue Measurement” (ASBJ
Guidance No. 31, June 17, 2021)(i) Overview
Treatment of calculation of fair value of investment trusts and notes, andtreatment of notes to fair value of investments in partnerships, etc., in which
the net amount equivalent to the equity interest is recorded on the balance
sheet are established.

4. Additional information

Board Incentive Plan (BIP) Trust
The Bank has introduced a BIP Trust for directors (excluding directors serving
as audit and supervisory committee members, outside directors and nonresidents of Japan; hereinafter collectively referred to as the “Bank’s directors”).
(i) Transaction overview
The BIP Trust is a stock incentive plan for directors, aimed at further raising
motivation to contribute to the medium- to long-term improvement of businessperformance and enhance the Bank’s corporate value. Under the plan, a certain
number of points are granted to the Bank’s directors based on their ranks andthe level of achievement of performance targets, and the Bank’s sharescorresponding to the aggregate number of points or money equivalent to thevalue of the Bank’s shares are granted or delivered to the Bank’s directors upon
their retirement.
(ii)	Accounting treatment for transactions delivering the Company’s own stock
through the trust
The Bank applies the “Practical Solution on Transactions of Delivering theCompany’s Own Stock to Employees, etc., through Trusts” (ASBJ PITF No.
30, March 26, 2015).
(iii)Matters relating to the Bank’s shares held by the trust(1)	The book values of the shares held by the trust were ¥257 million ($2,099
thousand) and ¥273 million as of March 31, 2022 and 2021, respectively.
(2)	The Bank’s shares held by the trust have been recorded as treasury stock instockholders’ equity.
(3)	The numbers of shares at year-end were 87 thousand and 92 thousand as ofMarch 31, 2022 and 2021, respectively. The average numbers of shares
during the year were 88 thousand and 76 thousand for the fiscal years ended
March 31, 2022 and 2021, respectively.
(4)	The number of shares at year-end and the average number of shares during
the year in 3) above are included in the number of treasury stock to be
deducted in the calculation of per share information.

5. Changes in net assets(1) Type and number of shares issued and treasury shares are as follows:
Thousands of shares
Increase
Decrease

March 31, 2021
2022
Shares issued
Common stock ..........................................................................
30,000Total.......................................................................................
30,000Treasury stock
517
Common stock (Notes 1, 2 and 3)...................................................
Total.......................................................................................
517

March 31, 2022

—
—

—
—

30,00030,000

1
1

11
11

506
506

Notes: 1. The number of shares of common stock at the end of the fiscal years ended March 31, 2022 and 2021 includes 87 thousand and 92 thousand shares, respectively, of the Bank’s shares
held by the BIP Trust.
2. The 1 thousand share increase in the number of common shares of treasury stock is due to a purchase demand for fractional shares from shareholders.
3. The 11 thousand share decrease in the number of common shares of treasury stock consists of decreases of 6 thousand shares due to the exercise of share subscription rights, 5 thousand
shares due to the delivery of shares to the beneficiaries from the BIP Trust, and 0 thousand shares due to an additional purchase demand for fractional shares from shareholders.

Thousands of shares
Increase
Decrease

2021
March 31, 2020
Shares issued
Common stock ..........................................................................
30,000Total.......................................................................................
30,000Treasury stock
Common stock (Notes 1 and 2)......................................................
478
Total.......................................................................................
478

March 31, 2021

—
—

—
—

30,00030,000

39
39

—
—

517
517

Notes: 1. The number of shares of common stock at the end of the fiscal years ended March 31, 2021 and 2020 includes 92 thousand and 54 thousand shares, respectively, of the Bank’s shares
held by the BIP Trust.
2. The 39 thousand share increase in the number of common shares of treasury stock consists of increases of 38 thousand shares due to an acquisition by the BIP Trust and 1 thousand shares
due to a purchase demand for fractional shares from shareholders.

(2) Matters concerning share subscription rights and own share options
The balance of share subscription rights (for stock options) at the end of March 31, 2022 and 2021 stood at ¥21 million ($171 thousand) and ¥41 million, respectively. At
end of the previous and current fiscal years, no shares had been earmarked for share subscription rights.
(3) Information on dividends(a) Dividends paid
2022
Resolution
Type of share
June 29, 2021 (Regular Annual General Meeting of Shareholders)Common(Note 1) .................................................................................
stock
November 9, 2021 (Meeting of the Board of Directors)
Common(Note 2) .................................................................................
stock

Total dividend
amount(Millions of yen)

Dividend
per share
(Yen)

¥887

¥30.0

887

30.0

Record date
Effective date
March 31,
June 30,
2021
2021
September 30, December 10,
2021
2021

2021
Resolution
Type of share
CommonJune 26, 2020 (Regular Annual General Meeting of Shareholders)stock(Note 1) .................................................................................
CommonNovember 10, 2020 (Meeting of the Board of Directors)
stock(Note 2) .................................................................................

Total dividend
amount(Millions of yen)

Dividend
per share(Yen)¥1,183

¥40.0

1,183

40.0

Record date
March 31,2020
September 30,
2020

Effective dateJune 29,2020
December 10,
2020(ii) Scheduled date of adoption
The Group expects to adopt the implementation guidance from the
beginning of the fiscal year ending March 31, 2023.
(iii)Impact of adopting the implementation guidanceThis does not affect the consolidated financial statements.

29

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

30

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements

2022

Resolution
June 29, 2021 (Regular Annual General Meeting of Shareholders)(Note 1) ..............................................................................
November 9, 2021 (Meeting of the Board of Directors)(Note 2) ..............................................................................

Type of share
Commonstock
Commonstock

Total dividend
amount(Thousands of
U.S. dollars)

Dividend
per share(U.S. dollars)$7,247$0.245

7,247

0.245

Record date
Effective date
March 31,
June 30,
2021
2021
September 30, December 10,
2021
2021

Notes: 1. In accordance with the resolutions approved at the Bank’s Regular Annual General Meetings of Shareholders held on June 29, 2021 and June 26, 2020, total amount of dividends paid
includes the dividend payment to the BIP Trust of ¥2 million ($16 thousand) and ¥2 million, respectively. These exclusions reflect the Bank’s classification of the shares held by the Trustas treasury stock.
2. In accordance with the resolutions approved at the Meetings of the Board of Directors held on November 9, 2021 and November 10, 2020, total amount of dividends paid includes thedividend payment to the BIP Trust of ¥2 million ($16 thousand) and ¥3 million, respectively. These exclusions reflect the Bank’s classification of the shares held by the Trust as treasury
stock.

(b) Dividends paid after the balance-sheet date2022
Total dividend
amountResolution
Type of share (Millions of yen)
June 29, 2022 (Regular Annual General Meeting of Shareholders)Common(Note)....................................................................................
stock¥1,183

Source ofdividends
Retainedearnings

Dividend
per share
(Yen)
¥40.0

Record date Effective date
March 31,
June 30,
2022
2022

2021
Total dividend
amountResolution
Type of share (Millions of yen)
CommonJune 29, 2021 (Regular Annual General Meeting of Shareholders)stock(Note)....................................................................................
¥887

Source ofdividends
Retainedearnings

Dividend
per share
(Yen)
¥30.0

Record date Effective date
March 31,
June 30,
2021
2021

2022
Total dividend
amountDividend(Thousands of Source ofper share
Resolution
Type of share U.S. dollars) dividends (U.S. dollars) Record date Effective dateJune 29, 2022 (Regular Annual General Meeting of Shareholders)CommonRetained
March 31,
June 30,(Note)....................................................................................
stock$9,665earnings$0.3262022
2022
Note: The total dividend amounts resolved on June 29, 2022 and June 29, 2021 include the dividends for the BIP Trust of ¥3 million ($24 thousand) and ¥2 million, respectively.

6. Securities and trading account securities(1) Investments in affiliates
Investments in affiliates as of March 31, 2022 and 2021 totaled ¥50 million($408 thousand) and ¥50 million, respectively.
(2) Securities lending transactions
National government bonds as of March 31, 2022 and 2021 included bonds of¥28,327 million ($231,448 thousand) and ¥37,638 million, respectively, whichwere lent to third parties without collateral under lending contracts.
(3) Trading account securities
Valuation profit (losses) of nil and ¥0 million were recognized for the fiscal years
ended March 31, 2022 and 2021, respectively.
(4) Held-to-maturity debt securities
Not applicable.
(5) Available-for-sale securities(a) Consolidated balance sheet amount and acquisition cost of available-for-salesecurities and their difference as of March 31, 2022 and 2021 were as
follows:

31

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

Millions of yen
Consolidatedbalance sheet Acquisition
amountcost
Difference2022
Consolidated balance sheet
amount exceedingacquisition cost
Equity stock...................... ¥  104,155 ¥   45,784
Bonds:
National........................
101,451
101,267
Local............................
69,18868,754
Corporate......................
42,90842,794
213,548
212,817
Other...........................
74,89872,224
Subtotal........................
392,603
330,825
Consolidated balance sheet
amount not exceedingacquisition cost
Equity stock......................
10,643
12,132
Bonds:
National........................
141,026
146,493
Local............................
314,032
317,764
Corporate......................
175,602177,293
630,661
641,551
Other...........................
234,946
247,285
Subtotal........................
876,251
900,969
Total..................................... ¥1,268,855 ¥1,231,794¥ 58,371
183
434
114
731
2,674
61,778(1,488)(5,466)(3,732)(1,690)(10,890)(12,338)(24,717)¥ 37,060

Millions of yen
Consolidatedbalance sheet Acquisition
amountcost
Difference

2021
Consolidated balance sheet
amount exceedingacquisition cost
Equity stock...................... ¥  110,915 ¥   43,304
Bonds:
National........................
119,032
117,655
Local............................
119,968
118,919
Corporate......................
60,33560,056299,336
296,632
Other...........................
173,410
166,094
Subtotal........................
583,662
506,031
Consolidated balance sheet
amount not exceedingacquisition cost
Equity stock......................
17,435
19,075
Bonds:
National........................
128,583
132,911215,525
216,444
Local............................
Corporate......................
116,459
117,135
460,568
466,491
206,272
215,351
Other...........................
684,277
700,918
Subtotal........................
Total..................................... ¥1,267,939 ¥1,206,950¥ 67,610
1,377
1,048
278
2,704
7,315
77,630(1,639)(4,328)(918)(675)(5,922)(9,078)(16,640)¥ 60,989

Thousands of U.S. dollars
Consolidatedbalance sheet Acquisition
amountcost
Difference2022
Consolidated balance sheet
amount exceedingacquisition cost
Equity stock...................... $   851,009 $   374,082
Bonds:
National........................
828,915
827,412
Local............................
565,307561,761
Corporate......................
350,584
349,652
1,744,815 1,738,843
Other...........................
611,961
590,113
Subtotal........................ 3,207,802 2,703,039
Consolidated balance sheet
amount not exceedingacquisition cost
Equity stock......................
86,95999,125
Bonds:
National........................ 1,152,267 1,196,936
Local............................ 2,565,830 2,596,323
Corporate...................... 1,434,774 1,448,590
5,152,880 5,241,857
Other........................... 1,919,650 2,020,467
Subtotal........................ 7,159,498 7,361,459
Total..................................... $10,367,309 $10,064,498$476,926
1,495
3,546
931
5,972
21,848504,763(12,157)(44,660)(30,492)(13,808)(88,977)(100,808)(201,952)$302,802(b) Gains and losses on sale of available-for-sale securities for the fiscal years
ended March 31, 2022 and 2021 are as follows:2022
Equity stock............................
Bonds:
National...........................
Local...............................
Corporate.........................
Other....................................
Total.....................................

Millions of yen
Proceeds
Gains onLosses on
from salesalesale¥  6,079¥2,308¥  692
43,957
138,608
24,490207,056
234,629¥447,765

115
236
13
364
2,607
¥5,281

563
174
5
743
7,184
¥8,6202021
Equity stock............................
Bonds:
National...........................
Local...............................
Corporate.........................
Other....................................
Total.....................................

Proceeds
from sale¥  3,768
163,087
87,286
18,960269,334
135,690¥408,793

Millions of yen
Gains onLosses onsale
sale¥2,850¥   55
197
286
40
525
1,555
¥4,931

647
—
—
647
3,257
¥3,959Thousands of U.S. dollars
Proceeds
Gains onLosses on
from sale
sale
sale
2022
Equity stock............................ $   49,669$18,857$ 5,654
Bonds:
National...........................
359,155939
4,600
Local............................... 1,132,510
1,421
1,928
Corporate.........................
200,098
106
40
1,691,772
2,974
6,070
Other.................................... 1,917,060
58,697
21,300Total..................................... $3,658,509$43,148$70,430(6) Impairment losses on securities
For securities other than trading securities (excluding shares, etc. that do nothave a market price and investments in partnerships), if the fair value has fallen
significantly below their acquisition cost and the fair value is not expected torecover, said securities are recorded at fair value on the consolidated balance
sheet and the valuation difference is treated as loss for the fiscal year(“impairment loss”).
Impairment losses of nil and ¥7,065 million (¥7,065 million for equity
stock) were recorded in the fiscal years ended March 31, 2022 and 2021,
respectively.
The Bank determines whether fair value has decreased significantly based on
the degree of such decrease. If the fair value as of the end of the fiscal year has
decreased by 50 percent or greater than acquisition cost, all securities are
deemed to have decreased materially. And if the fair value has decreased by 30
percent or more but less than 50 percent, the determination shall be made bytaking into account changes in fair value over a certain period in the past and theperformance of the issuing company concerned.

7. Net unrealized gains on available-for-salesecurities

The following is a breakdown of net unrealized gains on available-for- salesecurities recorded in the consolidated balance sheet:

Valuation difference...................
Available-for-sale securities....
Money held in trust.............
Deferred tax liabilities................
Net unrealized gains on availablefor-sale securities (before equity
equivalent)...........................
Net unrealized gains attributable tonon-controlling interests..........
Parent’s ownership interest ofaffiliates’ unrealized gains onavailable-for-sale securities.......
Net unrealized gains on availablefor-sale securities...................

Thousands ofMillions of yen
U.S. dollars
2021
2022
2022
¥60,989 $302,802¥37,060
60,98937,060302,802———(18,394)(11,168)(91,249)
25,891

42,595211,545

—

—

—

—

—

—

¥25,891¥42,595$211,545

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

32

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements
8. Loans and bills discounted

Claims under the Banking Act and the Act on Emergency Measures for the
Revitalization of Financial Functions are as follows. Claims include corporate
bonds in “Securities” in the consolidated balance sheets (limited to those forwhich redemption of the principal and payment of interest is guaranteed inwhole or in part, and for which the bonds were issued through private
placement of securities (Article 2, Paragraph 3 of the Financial Instruments andExchange Act)), loans and bills discounted, foreign exchange assets, accrued
interest and suspense payments in “Other assets,” and customers’ liabilities for
acceptances and guarantees, as well as the securities in the case of a loan of
securities (limited to those under a loan-for-use or lease agreement) that are
indicated in the notes.
Millions of yen
2021
2022

Thousands of
U.S. dollars
2022

Claims subject to bankruptcy
proceeding and reorganization
proceedings and any other typeof claims equivalent thereto...... ¥    5,435 ¥    4,513 $    44,407
Claims with risks......................
27,03729,930244,546
Claims requiring management......
28,922
27,112
221,521Loans overdue for three months ormore..................................
116
111
906
Restructured loans....................
28,80627,000220,606
Sub-total................................
60,47362,478510,482
Ordinary claims........................ 3,149,563 3,023,366 25,733,826
Total..................................... ¥3,212,042 ¥3,083,840 $26,244,317
Claims subject to bankruptcy proceeding and reorganization proceedings andany other type of claims equivalent thereto mean the claim held against debtors
with failed business status due to the grounds such as commencement ofbankruptcy proceedings, commencement of reorganization proceedings, orcommencement of rehabilitation proceedings, and any other type of claims
equivalent thereto.
Claims with risks mean the claims whose debtor is not yet in the status of
failure in business although such debtor’s financial status and businessperformance are worsening, and for which it is highly likely that the collectionof principal or receipt of interest in accordance with the contract is impossible,
excluding the claims subject to bankruptcy proceeding and reorganization
proceedings and any other type of claims equivalent thereto.
Loans overdue for three months or more mean loans for which payment ofprincipal or interest has been delayed for three months or more from the datefollowing the agreed payment date, excluding the claims subject to bankruptcy
proceeding and reorganization proceedings and any other type of claims
equivalent thereto and the claims with risks.
Restructured loans mean loans on which creditors grant concessions (e.g.,
reduction of the stated interest rate, deferral of interest payment, concessions ofprincipal repayment, waiver of the face amount, or other concessive measures)to the debtors to assist them in recovering from financial difficulties andeventually being able to pay creditors, excluding the claims subject tobankruptcy proceeding and reorganization proceedings and any other type ofclaims equivalent thereto, the claims with risks and the loans overdue for threemonths or more.
Ordinary claims mean the claims categorized as those other than the claims
set forth above, whose debtors are not found to be problematic in terms of thefinancial status and business performance.
The above claim amounts are before deduction of reserve for possible loan
losses.

(Changes in presentation)
Following the enforcement of the “Cabinet Office Order Partially Amending
Ordinance for Enforcement of the Banking Act” (Cabinet Office Order No. 3,
January 24, 2020) on March 31, 2022, the classification of “Risk-monitoredloans” under the Banking Act is presented in accordance with the classification of
disclosed claims under the Act on Emergency Measures for the Revitalization of
Financial Functions.
Bills discounted are treated as financial transactions in accordance with
“Accounting and Auditing Treatment Relating to Adoption of AccountingStandards for Financial Instruments for Banks (JICPA Industry Committee
Practical Guideline No. 24, March 17, 2022).” Commercial bills and foreign
bills bought are permitted to be sold or pledged and their total face value was asfollows:

Bills discounted..............................

Millions of yen
2021
2022
¥12,689¥12,848

Thousands of
U.S. dollars
2022$104,975

9. Guarantee obligations

Guarantee obligations for bonds in private placement (defined in Article 2,
Paragraph 3 of the Financial Instruments and Exchange Act of Japan) included incorporate bonds under “Securities” in the consolidated balance sheets were¥26,354 million ($215,328 thousand) and ¥23,339 million as of March 31,
2022 and 2021, respectively.

10. Assets pledged as collateral

Assets pledged as collateral as of March 31, 2022 and 2021 consisted of thefollowing:
Millions of yen
2021
2022
Assets pledged as collateral:
Securities.........................
Loans and bills discounted.....
Total...............................
Liabilities corresponding to assets
pledged as collateral:
Deposits...........................
Payables under securities
lending transactions..........
Borrowed money................

¥484,461
256,221740,682

Thousands of
U.S. dollars
2022¥463,257 $3,958,338
97,207 2,093,479
560,464 6,051,817

17,212

15,526140,632

12,696678,399

56,643
370,133

103,733
5,542,928

In addition to the assets presented above, the following assets were pledged ascollateral for exchange clearance transactions and futures contracts at March
31, 2022 and 2021:

Securities................................
Other assets............................

Thousands ofMillions of yen
U.S. dollars
2021
2022
2022
¥   400 $  3,039¥   372
30,00030,000245,118

As of March 31, 2022 and 2021, in addition to the items presented above, otherassets included cash collateral paid for financial instruments of ¥6,710 million($54,824 thousand) and ¥7,389 million, and guarantees and household depositsof ¥1,055 million ($8,619 thousand) and ¥1,140 million, respectively.

11. Commitment line agreements on overdrafts andloans

Commitment line agreements on overdrafts and loans are agreements to lendfunds to customers upon application up to a prescribed amount as long as there
is no violation of any condition established in the contract. The balance of unusedloans under these agreements as of March 31, 2022 and 2021 was as follows:
Thousands ofMillions of yen
U.S. dollars
2021
2022
2022
Unused commitments................ ¥1,009,060 ¥1,017,138 $8,244,627
Contracts with less than a yearof contract period orcontacts that are cancellable
unconditionally at any time.
943,477 7,509,535
919,092
Since many of these commitments are expected to expire without being drawn
upon, the total amount of unused commitments does not necessarily have effecton the future cash flow of the Group. Many of these commitments have clausesthat allow the Group to refuse an application from customers or reduce the limit
amount with proper reasons (e.g. changes in financial situation, to secure claims,etc.). In addition, the Group may request the customers to pledge collateralsuch as real estate and securities at the time of the contracts if necessary and takenecessary measures periodically based on a prescribed internal procedure after
conclusion of contracts such as monitoring customers’ business status, revising
contracts and securing claims.

12. Income taxes(1) Deferred tax assets
Major components of deferred tax assets as of March 31, 2022 and 2021 wereas follows:
Millions of yen
2021
2022
Deferred tax assets:
Net unrealized losses on availablefor-sale securities................... ¥ 7,514
Excess reserve for possible loan
losses
6,914
Net defined benefit liability..........
2,320
Excess depreciation...................
1,067
Reserve for bonuses...................
505
Loss on devaluation of equity
securities.............................
333
Net deferred losses on hedging
instruments..........................
35
Other....................................
2,089
Subtotal.................................
20,780
Valuation reserve......................
(6,218)Deferred tax assets....................
14,562
Deferred tax liabilities:
Net unrealized gains on availablefor-sale securities................
(18,682)
Net deferred gains on hedging
instruments.......................
(1,175)Reserve for advanced
depreciation of non-current
assets...............................
(119)
Other.................................
(27)
Deferred tax liabilities................
(20,005)
Net deferred tax liabilities........... ¥ (5,443)

Thousands of
U.S. dollars
2022¥ 5,058$ 61,393

7,513
2,046
1,098
466

56,491
18,955
8,718
4,126

2,438

2,720

389
2,257
21,269(7,386)
13,882285
17,068
169,785(50,804)
118,980(23,453)(152,643)(1,578)(9,600)(2) Income taxes
The following table shows the major items responsible for the difference
between the statutory tax rate and the effective tax rate after application oftax-effect accounting for the fiscal years ended March 31, 2022 and 2021.
Statutory income tax rate..............................
Reconciliation:
Non-deductible expenses, including
entertainment expenses..........................
Non-taxable income, including dividend
income..............................................
Per-capita resident tax...............................
Increase (decrease) of valuation reserve..........
Other...................................................
Effective income tax rate under tax-effectaccounting.............................................

2022
30.4%

2021
30.4%

0.3

1.0

(2.6)
0.4
(7.8)
1.4

(6.5)
1.1
15.1
8.7

22.1%

49.8%

13. Accumulated depreciation and reduction entry

Accumulated depreciation of tangible fixed assets as of March 31, 2022 and2021 amounted to ¥37,546 million ($306,773 thousand) and ¥37,763 million,
respectively.
Reduction entry, which is deferred gain on tangible fixed assets deductible
for tax purposes, amounted to ¥2,452 million ($20,034 thousand) and ¥2,452
million as of March 31, 2022 and 2021, respectively. Reduction entry for the
fiscal years ended March 31, 2022 and 2021 amounted to nil, respectively.

14. Revaluation reserve for land

Based on the Law on the Revaluation of Land, the Bank’s land was revalued on
March 31, 1999.
The amounts equivalent to deferred tax on the land revaluation wererecorded as deferred tax liability for land revaluation in liabilities, and net
unrealized gains on the land revaluation were recorded as revaluation reserve forland in stockholders’ equity.
As of March 31, 2022 and 2021, the difference between the carrying
amount and the fair value of the revalued land was ¥12,331 million ($100,751
thousand) and ¥12,324 million, respectively.

15. Asset retirement obligations

Notes on asset retirement obligations have been omitted due to immateriality.

16. Investment and rental property

Notes on investment and rental property have been omitted due toimmateriality.

17. Other income

Other income includes the following:

Lease revenue..........................
Gain on sale of equity securities....

Thousands ofMillions of yen
U.S. dollars
2021
2022
2022
¥7,754¥7,594$62,047
2,850
2,308
18,857

18. General and administrative expenses
(119)
(972)
(29)
(220)
(25,180) (163,452)¥(11,297) $ (44,472)

Salaries and allowances were included in general and administrative expenses,
which amounted to ¥14,546 million ($118,849 thousand) and ¥14,797 million
for the fiscal years ended March 31, 2022 and 2021, respectively.

19. Other expenses(1) Other expenses include the following:

Cost of lease............................
Loan write-offs........................
Loss on devaluation of equity
securities.............................

33

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

Thousands ofMillions of yen
U.S. dollars
2021
2022
2022
¥6,442¥6,255$51,107
1,362
1,912
15,622
1

7,065

8

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

34

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements(2) Impairment losses
During the fiscal years ended March 31, 2022 and 2021, the Bank recorded
impairment losses on fixed assets as described below:
Millions of yen
Impairment losses
2021
2022
Kagawa Pref.... Assets forbusiness use
and idle assets(2022: 19
locations2021: 13locations)Land,
buildings
andmovablesOther............ Assets forbusiness use
and idle assets(2022: 5locations2021: 7
locations)Land andbuildings
andmovablesTotal.............

¥67

¥118

land: 57

land: 71

buildings: 8

buildings: 44

movables: 1

movables: 1

¥ 5

¥ 41

land: 0land: 26

buildings: 4
movables: 0¥72
land: 57
buildings: 12
movables: 2buildings: 13
movables: 1¥161
land: 97
buildings: 59
movables: 3

Thousands of
U.S. dollars
Impairment
losses2022
Kagawa Pref.... Assets forbusiness use
and idle assets(2022: 19
locations)Land,
buildings
andmovablesOther............ Assets forbusiness use
and idle assets(2022: 5locations)Land andbuildings

Total.............

$547
land: 465
buildings: 65
movables: 8$ 40
land: 0buildings: 32
movables: 0$588
land: 465
buildings: 98
movables: 16

The Bank posted impairment losses of ¥72 million ($588 thousand) and ¥161
million, respectively, during the fiscal years ended March 31, 2022 and 2021 onland, buildings and movables due to a fall in operating cash flows and continuous
declines in land prices. The Bank reduced the carrying amounts of thecorresponding assets to the recoverable amounts, and recorded the difference
between the carrying amount and recoverable amount of each asset as
impairment losses under other expenses.
In general, the Bank treats each of its branches as a single asset group unit forrecognition and measurement of impairment losses; however, jointly managed
branches are treated as a single cash generating unit. Values of idle assets andassets for disposal are measured on an individual basis.
Regarding head office buildings, operation and training centers,
dormitories, and housing and welfare facilities, these facilities are classified as
the Bank’s common property, as it is deemed difficult to specify each asset as asource of identifiable cash flows in the future.
At the Bank’s consolidated subsidiaries, each business base of subsidiaries isusually considered as the smallest grouping unit. Idle assets and assets for
disposal, however, are valued on an individual basis.

35

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

For the fiscal year ended March 31, 2022, the recoverable amounts aremeasured using the net selling prices. Net selling prices are calculated on thebasis of appraisal values of land or the amounts computed using the method laid
down by the National Tax Agency of Japan for calculation of land prices (used as
the basis for computing taxable amounts as set forth in Article 16 of the Land Tax
Law) after deducting estimated costs of disposal.
For the fiscal year ended March 31, 2021, the recoverable amounts aremeasured using the higher of either the net selling prices or value in use. Net
selling prices are calculated on the basis of appraisal values of land or theamounts computed using the method laid down by the National Tax Agency ofJapan for calculation of land prices (used as the basis for computing taxable
amounts as set forth in Article 16 of the Land Tax Law) after deducting
estimated costs of disposal, and value in use is calculated by discounting thefuture cash flow at discount rates of 0.1%.

2. As lessor(1) Breakdown of investment in leases

20. Matters relating to consolidated statements ofcomprehensive income

2022
Up to 1 year............................
Over 1 year, up to 2 years............
Over 2 years, up to 3 years..........
Over 3 years, up to 4 years..........
Over 4 years, up to 5 years..........
Over 5 years............................

Millions of yen
Receivables on
Lease receivables investments in leases¥180¥6,443
91
5,039
48
3,792
26
2,497
3
1,298
4
1,069

2021
Up to 1 year............................
Over 1 year, up to 2 years............
Over 2 years, up to 3 years..........
Over 3 years, up to 4 years..........
Over 4 years, up to 5 years..........
Over 5 years............................

Millions of yen
Receivables on
Lease receivables investments in leases¥251¥6,504
186
5,429
67
4,151
28
2,883
11
1,616
0
1,161

2022
Up to 1 year............................
Over 1 year, up to 2 years............
Over 2 years, up to 3 years..........
Over 3 years, up to 4 years..........
Over 4 years, up to 5 years..........
Over 5 years............................

Thousands of U.S. dollars
Receivables on
Lease receivables investments in leases$1,470$52,643743
41,171392
30,982
212
20,401
24
10,60532
8,734

The amount of recycling and amount of income tax effects associated with othercomprehensive income:Millions of yen
2021
2022
Net unrealized gains (losses) on
available-for-sale securities, netof taxes:
Amount recognized during theyear................................ ¥(24,176)
Amount of recycling...............
247
Prior to income tax effect......
(23,929)
Income tax effect................
7,225
Net unrealized gains (losses)
on available-for-salesecurities, net of taxes.......
(16,703)
Net deferred gains (losses) on
hedging instruments, net oftaxes:
Amount recognized during theyear................................
(530)
Amount of recycling...............
373
Prior to income tax effect......
(157)
Income tax effect................
47
Net deferred gains (losses) on
hedging instruments.........
(109)
Remeasurements of defined benefit
plans:
Amount recognized during theyear................................
(657)
Amount of recycling...............
91
Prior to income tax effect......
(566)
Income tax effect................
172
Remeasurements of defined
benefit plans...................
(394)
Total other comprehensive income. ¥(17,207)

Thousands of
U.S. dollars
2022¥36,576 $(197,532)
2,898
2,018
39,474(195,514)(11,927)59,032
27,547(136,473)

13,857751
14,609(4,441)(4,330)3,047(1,282)384

10,167

(890)

5,076
708
5,785
(1,758)(5,368)743(4,624)
1,405

4,026
¥41,741(3,219)$(140,591)

21. Finance leases

Information on finance leases for the fiscal years ended March 31, 2022 and2021 are as follows:
1. As lessee
Finance lease transactions that do not transfer ownership(1) Components of lease assets(a) Tangible fixed assets
Primarily consisting of ATMs(b) Intangible fixed assets
Not applicable.
(2)Depreciation and amortization methods for lease assets
Depreciation and amortization methods for lease assets are described in “3.
Significant accounting policies (5) Depreciation”.

Lease receivables......................
Estimated residual value..............
Interest received.......................
Investments in leases..................

Thousands ofMillions of yen
U.S. dollars
2021
2022
2022
¥21,746 $164,555¥20,140
3,152
3,025
24,716(2,578)(2,255)(18,424)¥22,320 $170,847¥20,910(2) Schedule for collection of lease receivables and receivables oninvestments in leases by leasing contract maturity

3. Operating leases
As lessor
Future minimum lease payments related to non-cancellable operating leasetransactions

Up to 1 year............................
Over 1 year.............................
Total.....................................

Thousands ofMillions of yen
U.S. dollars
2021
2022
2022
¥1
¥0
$0
0
—
—
¥2
¥0
$0

22. Financial instruments

1. Disclosures related to financial instruments(1) Financial instrument policies
The Group provides banking services, including leasing and other financial
services. The Group limits risk within the scope of its business capacity, while
realizing profits commensurate with the risk of the financial instruments held.
To accomplish this goal, the Group quantifies, to the greatest extent possible,
various risks related to financial instruments using statistical methods. It
categorizes capital (risk capital) according to the size of the risk, engaging in“integrated risk management,” incorporating a capital allocation system thatmonitors risk versus return. The Group continues to improve efficiency in risk
management, ensuring greater stability and soundness for the business as awhole.
(2) Nature and extent of risks arising from financial instruments
The major types of financial assets held by the Group are loans and bills
discounted and securities. Loans and bills discounted are mainly for domestic
corporations and individuals, and are exposed to credit risk, interest rate risk,
and foreign exchange risk. If loans and bills discounted are concentrated
excessively on a particular corporate group or industry type, the Group’s
stockholders’ equity may suffer significant adverse effects. Therefore, the Group
has set maximum loan balances for each corporate group or industry type, andhas in place a system for monitoring compliance with these thresholds toprevent such an excessive concentration of risk.
Securities mainly consist of stocks, bonds, investment trusts and direct
investments. These investments are used as a pure investment vehicle or as partof a Group investment policy. In addition, certain bonds are held for resale.
These investments are exposed to the credit risk of the issuing body, interest raterisk, price volatility risk and/or foreign exchange risk. Securities include
financial instruments with limited market liquidity, including private placement
bonds underwritten by the Group, private equity shares, and direct investments.
Financial liabilities mainly consist of deposits received from domestic
corporations and individuals. These financial liabilities are exposed to interest
rate risk, exchange rate risk, and liquidity risk.
Derivative transactions entered into by the Group include interest rate andcurrency swaps, options, futures/forward contracts, and cap transactions. Thesetransactions are generally entered into with a client to cover the underlying
financial instrument. Such transactions are variously exposed to interest raterisk, foreign exchange risk, price volatility risk, and the credit risk of thecounter party.
For certain interest rate swaps, individual deferred hedge accounting isapplied so that the hedged items and hedging instruments directly match.
Evaluation of hedge effectiveness is omitted as material terms related to thehedged items and hedging instruments are substantially identical and the market
fluctuations or cash flow fluctuations are offset at the time of commencement
and continuously thereafter. In addition, the Bank applies the deferred hedge
accounting stipulated in the basic provisions of JICPA Industry Committee
Practical Guideline No. 25 for currency swap and foreign exchange swap
transactions that are concluded for the purpose of hedging foreign exchange raterisk associated with foreign currency denominated financial assets. Hedge
effectiveness of these hedge transactions is evaluated by confirming thecorrespondence of the position to the amount of foreign currency denominatedfinancial assets hedged.
(3) Risk management for financial instruments(a) Credit risk management
The Group has compiled Credit Risk Management Rules and related
documents, and the Risk Management Committee (Credit Risk Management
Subcommittee) monitors and manages credit risk exposures.
In addition, the Risk Management Division acts as the credit risk managing
department for granting and verifying internal credit ratings, measures theamount of credit risk and sets and manages credit limits.
(b) Market risk management
The Group has established Market Risk Management Rules along with relevant
documentation, and the Risk Management Committee (Market Risk
Management Subcommittee) monitors market risk and maintains management
systems. The Revenue Management Committee (Budget ALM Subcommittee)
deliberates on the stability of medium and long-term profit in light of risk
circumstances.

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

36

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements
Departments involved in the execution of market transactions (Treasury
and International Division) have been divided into front office (transaction
execution), back office (clerical), and middle office (market risk management)roles. This creates a system of internal checks and balances, with the Risk
Management Division in charge of managing overall market risk.
(i) Interest rate risk management
The Group manages interest rate risk using statistical methods to quantify thesize of the interest rate risk. When deemed necessary, the Group establishes andmanages limits on positions and/or profits and losses for securities, derivatives,and other market transactions. The Group also enters into derivativetransactions for interest rate swaps to hedge interest rate risk as part of ALM.
(ii) Foreign exchange risk management
The Group uses statistical methods to quantify and manage foreign exchangerisk. The Group also establishes and manages limits on positions and profits andlosses.
(iii) Price volatility risk management
The Group uses statistical methods to quantify and manage price volatility risk.
The Group establishes and manages limits on positions and profits and losses.
(iv) Quantitative information regarding market risks
a. Financial instruments held for trading purposes
In measuring the VaR of interest rate risks associated with trading securities,
interest rate futures and related transactions as well as the VaR of foreign
currency exchange risks associated with foreign exchange trading andrelated transactions, the Group applies the historical simulation methodwith a holding period of 10 days, a confidence interval of 99% and an
observation period of 1,200 business days. As of March 31, 2022 (theconsolidated balance sheet date), the volume of the aforementioned risks offinancial instruments held for trading purposes (estimated amount of loss)
amounted to ¥11 million ($89 thousand) (compared with ¥6 million at theend of the previous fiscal year).
b. Financial instruments not held for trading purposes
In measuring the VaR of interest rate risks associated with loans and bills
discounted, investment securities, deposits, and interbank, interest rate
swap and related transactions, as well as the VaR for volatility risks associatedwith the prices of publicly listed company shares and investment trusts, etc.
the Group applies the historical simulation method with a holding period of
120 days, a confidence interval of 99% and an observation period of 1,200
business days.
The VaR of financial instruments not held for trading purposes
amounted to ¥57,708 million ($471,509 thousand) and ¥60,786 million asof March 31, 2022 and 2021, respectively.
c. VaRThe Group uses back testing to compare the VaR computed by the models
and the hypothesized gain/loss (gain or loss assumed generated when theportfolio is fixed at the time of measuring the VaR) to verify the reliability ofthese measured models.
However, VaR determined using the historical simulation method is ameasure of the volume of market risk at a certain event probability
statistically computed utilizing changes in historical market data. In thiscontext, there are cases in which VaR cannot capture risk under sudden anddramatic changes in the market beyond normal circumstances. To
supplement the limitations of VaR, the Group conducts stress testing
periodically in addition to the management using VaR.

37

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022(c) Liquidity risk management
The Group has established Liquidity Risk Management Rules and other related
guidelines as a basis for managing liquidity risk. The Group has also established
Liquidity Crisis Response Rules to ensure a prompt response to unexpected
situations that may affect cash management. These rules assume that unexpected
situations will arise and classify them into the categories of “caution” and “crisis”,
thereby enabling the Group to respond in a timely and appropriate manner.
The Liquidity Risk Management Department (Treasury and International
Division) performs daily and monthly cash projections to ensure proper andstable cash management based on the Group’s investment/acquisition structure,ensuring sufficient liquidity reserves. The Liquidity Risk Management
Department is also responsible for identifying, analyzing, assessing andmonitoring liquidity risk in consideration of internal and external factors that
may have an impact on the said risk.
(4) Supplementary information regarding fair value of financial
instruments
Since certain assumptions are used to calculate the fair value of financial
instruments, the said value may vary when differing assumptions are used.
2. Fair value of financial instruments
The consolidated balance sheet amount, fair values and the differences as ofMarch 31, 2022 and 2021 are as follows. Shares, etc. that do not have a market
price and investments in partnerships are not readily determinable are notincluded in the following table (Note 1). Notes to cash and due from banks, callloans and bills bought, monetary claims bought, foreign exchange (assets andliabilities), call money and bills sold, and payables under securities lendingtransactions are omitted because the fair values approximate book values due totheir short maturities.
Millions of yen
Consolidatedbalance sheet
amountFair value Difference

2022(1) Securities
Available-for-sale securities..... ¥1,268,855 ¥1,268,855(2) Loans and bills discounted....... 3,159,889
Reserve for possible loan
losses*1.............................
(16,737)
3,143,152 3,141,889
Total assets.............................. 4,412,007 4,410,745(1) Deposits............................ 4,558,239 4,558,378(2) Negotiable certificates ofdeposit..............................
74,576
74,579(3) Borrowed money..................
700,615
700,571
Total liabilities.......................... 5,333,430 5,333,529
Derivative Transactions*2
Not subject to hedge accounting.
(389)
(389)
Subject to hedge accounting......
513
513
Total Derivative Transactions........ ¥      123 ¥      123¥    —(1,262)(1,262)
139
2
(43)
98
—
—
¥    —

Millions of yen
Consolidatedbalance sheet
2021
amountFair value Difference(1) Trading account securities....... ¥       13 ¥       13¥    —(2) Securities
Available-for-sale securities..... 1,267,939 1,267,939—(3) Loans and bills discounted....... 3,035,782
Reserve for possible loan
losses*1.............................
(16,503)3,019,279 3,032,939
13,660Total assets.............................. 4,287,232 4,300,892
13,660(1) Deposits............................ 4,440,571 4,440,65987(2) Negotiable certificates ofdeposit..............................
84,721
84,7243(3) Borrowed money..................
393,331
393,458
126
Total liabilities.......................... 4,918,624 4,918,842
217
Derivative Transactions*2
Not subject to hedge accounting.
(52)
(52)
—
Subject to hedge accounting......
2,383
2,383
—
Total Derivative Transactions........ ¥    2,331 ¥    2,331¥    —

Thousands of U.S. dollars
Consolidatedbalance sheet
amountFair value Difference

2022(1) Securities
Available-for-sale securities..... $10,367,309 $10,367,309(2) Loans and bills discounted....... 25,818,195
Reserve for possible loan
losses*1............................. (136,751)
25,681,444 25,671,125
Total assets.............................. 36,048,753 36,038,442(1) Deposits............................ 37,243,557 37,244,693(2) Negotiable certificates ofdeposit..............................
609,330
609,355(3) Borrowed money.................. 5,724,446 5,724,086
Total liabilities.......................... 43,577,334 43,578,143
Derivative Transactions*2
Not subject to hedge accounting.
(3,178)(3,178)
Subject to hedge accounting......
4,191
4,191
Total Derivative Transactions........ $     1,004 $     1,004(Note 1) The consolidated balance sheet amount of shares, etc. that do not havea market price and investments in partnership are as follows. These are
not included in Available-for-sale securities in the tables above.

$     —

(10,311)(10,311)
1,135
16
(351)
800
—
—
$     —

Thousands of
U.S. dollars
Consolidated
Consolidated balance balance sheet
sheet amountamount
2021
2022
2022
¥2,731¥2,730$22,305
2,272
3,292
26,897
Millions of yen

Category
1. Private equity shares*1*2.........
2. Investments in partnership*3*4...

*1	Private equity shares are excluded from fair value disclosure in accordance with
Paragraph 5 of the “Implementation Guidance on Disclosures about Fair Value of
Financial Instruments” (ASBJ Guidance No. 19, March 31, 2020).
2* 	Impairment loss on private equity shares of ¥1 million ($8 thousand) was recognized forthe fiscal year ended March 31, 2022. No impairment loss on private equity shares wasrecognized for the fiscal year ended March 31, 2021.
*3	Investments in partnership are excluded from the disclosure of fair value in accordancewith Paragraph 27 of “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, July 4, 2019).
*4	Impairment loss on investments in partnership of ¥3 million ($24 thousand) and ¥0
million for the fiscal years ended March 31, 2022 and 2021, respectively.

*1	General reserve for possible loan losses and specific reserve for possible loan losses forloans and bills discounted are deducted from above.
*2	Derivative transactions in the above table are recorded on a net basis with liabilities
presented in parentheses.
*3	Items with no material impact have not been listed.

(Note 2) The redemption schedule and the corresponding estimated amounts of monetary claims and securities with maturities subsequent to March 31, 2022 and 2021
are as follows:

2022
Securities:
Available-for-sale securities with maturities.................
National government bonds..............................
Local government bonds..................................
Corporate bonds............................................
Other.........................................................
Loans and bills discounted*.....................................
Total................................................................

2021
Securities:
Available-for-sale securities with maturities.................
National government bonds..............................
Local government bonds..................................
Corporate bonds............................................
Other.........................................................
Loans and bills discounted*.....................................
Total................................................................

2022
Securities:
Available-for-sale securities with maturities.................
National government bonds..............................
Local government bonds..................................
Corporate bonds............................................
Other.........................................................
Loans and bills discounted*.....................................
Total................................................................

Up to 1 year

Over 1 year,
up to 3 years¥   56,976
25,0002,497
10,524
18,954
1,116,427¥1,173,404¥ 84,907—
22,18520,603
42,118536,958¥621,865

Up to 1 year

Over 1 year,
up to 3 years¥   44,743
12,000901
8,994
22,8481,059,157¥1,103,901¥105,102
25,0008,455
19,51852,129477,477¥582,580

Up to 1 year

Over 1 year,
up to 3 years$  465,528
204,265
20,401
85,987
154,865
9,121,880$9,587,417$  693,741—
181,264
168,338
344,129
4,387,270$5,081,011

Millions of yen
Over 3 years, Over 5 years,
up to 5 years
up to 7 years

Over 7 years,
up to 10 years

Over 10 years¥107,398
10,00041,35331,643
24,401
274,686¥382,084¥450,250
20,000270,362
106,910
52,978292,236¥742,486¥188,994
118,000
31,00526,097
13,891
505,709¥694,704

Millions of yen
Over 3 years, Over 5 years,
up to 5 years
up to 7 years

Over 7 years,
up to 10 years

Over 10 years¥ 44,310—
15,3163,238
25,756258,143¥302,454¥513,604
31,000284,191
105,150
93,263
289,482¥803,087¥239,965
138,000
11,71022,487
67,766
485,712¥725,677

Thousands of U.S. dollars
Over 3 years, Over 5 years,
up to 5 years
up to 7 years

Over 7 years,
up to 10 years

Over 10 years$3,678,813
163,4122,209,020
873,519432,862
2,387,744$6,066,557$1,544,194
964,131
253,329
213,228
113,497
4,131,947$5,676,150¥195,123
71,00019,05324,23380,837
386,930¥582,054¥110,466
40,00014,716
17,68438,065
421,689¥532,156$1,594,272
580,112
155,674
197,998
660,486
3,161,451$4,755,731$  877,506
81,706
337,878
258,542
199,370
2,244,350$3,121,856*Loans and bills discounted do not include ¥35,324 million ($288,618 thousand) and ¥31,512 million in loans to bankrupt, substantially bankrupt and likely to go bankrupt borrowers or otherloans of which repayment is not expected, or ¥11,617 million ($94,917 thousand) and ¥12,606 million in loans with no established maturity as of March 31, 2022 and 2021, respectively.

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

38

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements(Note 3) The redemption schedule of corporate bonds, borrowed money and other interest-bearing debt scheduled to be repaid subsequent to March 31, 2022 and 2021
is as follows:2022
Deposits*..........................................................
Negotiable certificates of deposit..............................
Borrowed money.................................................
Total................................................................

2021
Deposits*..........................................................
Negotiable certificates of deposit..............................
Borrowed money.................................................
Total................................................................

2022
Deposits*..........................................................
Negotiable certificates of deposit..............................
Borrowed money.................................................
Total................................................................

Up to 1 year
¥4,359,368
74,536424,827¥4,858,731

Over 1 year,
up to 3 years¥182,31040
94,239¥276,589

Millions of yen
Over 3 years, Over 5 years,
up to 5 years
up to 7 years¥  6,220¥  137——
179,641
1,336¥185,861¥1,473Up to 1 year
¥4,257,165
84,629266,241¥4,608,036

Over 1 year,
up to 3 years¥177,12392
35,506¥212,721

Millions of yen
Over 3 years, Over 5 years,
up to 5 years
up to 7 years¥ 5,880¥147——
90,438763¥96,319¥910

Over 7 years,
up to 10 years
¥253
—
382
¥635

Over 10 years
¥—
—
—
¥—

Up to 1 year
$35,618,661
609,004
3,471,092$39,698,758

Over 1 year,
up to 3 years$1,489,582
326
769,989$2,259,898

Thousands of U.S. dollars
Over 3 years, Over 5 years,
up to 5 years
up to 7 years$   50,821$ 1,119——
1,467,775
10,915$1,518,596$12,035

Over 7 years,
up to 10 years$83,356—
2,361$85,725

Over 10 years
$ —
—
2,295
$2,295

Over 7 years,
up to 10 years¥10,202—289¥10,492

Over 10 years
¥  —
—
281
¥281

*Among deposits, demand deposits are included in “Up to 1 year.”

3. Fair value information by level within the fair value hierarchy
The fair value of financial instruments is classified into the following three levels according to the observability and materiality of inputs used to measure fair value.
Level 1 fair value: Fair value measured using observable inputs, i.e. quoted prices in active markets for identical assets or liabilities.
Level 2 fair value: Fair value measured using observable inputs other than Level 1 inputs.
Level 3 fair value: Fair value measured using unobservable inputs.
If multiple inputs are used that are significant to the fair value measurement, the fair value measurement is categorized in its entirety in the level of the lowest level
input that is significant to the entire measurement.
(1) Financial instruments measured at fair value

2022
Securities:
Available-for-sale securities
National government bonds..............................
Local government bonds..................................
Corporate bonds............................................
Equity stock.................................................
Other.........................................................
Total assets........................................................
Derivative transactions
Interest rate related........................................
Currency related...........................................
Total derivative transactions....................................

2022
Securities:
Available-for-sale securities
National government bonds..............................
Local government bonds..................................
Corporate bonds............................................
Equity stock.................................................
Other.........................................................
Total assets........................................................
Derivative transactions
Interest rate related........................................
Currency related...........................................
Total derivative transactions....................................

Level 1Millions of yen
Fair Value
Level 2
Level 3¥242,477——
114,799
26,544¥383,821¥  —
383,220
192,145—
88,879¥664,246¥——
26,365—
15,170¥41,535¥  242,477
383,220
218,511
114,799
130,594¥1,089,603

¥  —
—
¥  —

¥  3,870(3,746)¥    123¥¥    3,870(3,746)¥      123

Level 1Thousands of U.S. dollars
Fair Value
Level 2
Level 3

$1,981,183——
937,976
216,880$3,136,048$    —
3,131,138
1,569,940—
726,194$5,427,289$  ——
215,417—
123,948$339,365$1,981,183
3,131,138
1,785,366
937,976
1,067,031$8,902,712$    ——$    —$   31,620(30,607)$    1,004

$  —
—
$  —

$   31,620(30,607)$    1,004

¥

Total

—
—
—

Total

(2) Financial instruments other than those measured at fair value

2022
Loans and bills discounted......................................
Total assets........................................................
Deposits............................................................
Negotiable certificates of deposit..............................
Borrowed money.................................................
Total liabilities....................................................

2022
Loans and bills discounted......................................
Total assets........................................................
Deposits............................................................
Negotiable certificates of deposit..............................
Borrowed money.................................................
Total liabilities....................................................

Level 1
¥—
¥—
¥—
—
—
¥—

Millions of yen
Fair Value
Level 2
Level 3¥     —
¥3,141,889¥    —¥3,141,889¥4,558,378¥     —
74,579—700,571—¥5,333,529¥    —

Total¥3,141,889¥3,141,889¥4,558,378
74,579700,571¥5,333,529

Level 1
$—
$—
$—
—
—
$—

Thousands of U.S. dollars
Fair Value
Level 2
Level 3$     —
$25,671,125$     —
$25,671,125$37,244,693$     —
609,355—
5,724,086—$     —
$43,578,143

Total$25,671,125$25,671,125$37,244,693
609,355
5,724,086$43,578,143(Note 1) Description of valuation techniques and inputs used in the fair value measurements
AssetsSecurities:
Securities for which unadjusted quoted market prices in active markets are available are classified as Level 1 fair value. This mainly includes listed equity stock and national
government bonds.
Securities for which published quoted market prices are available but the market is not active are classified as Level 2 fair value. This mainly includes local government
bonds and corporate bonds.
When quoted market prices are not available, fair value is estimated using valuation techniques such as valuation prices obtained from third parties such as brokers orpresent value of future cash flows. The valuation is based on the maximum use of observable inputs, which include TIBOR, national government bond yields, swap rates,
and credit spreads. When significant unobservable inputs are used in the calculation, the fair value is classified as Level 3 fair value.
Investment trusts are based on published reference prices, and no level is attached by applying transitional measures in accordance with Paragraph 26 of the“Implementation Guidance on Accounting Standard for Fair Value Measurement.”
The fair value of self-guaranteed privately-subscribed bonds is calculated by discounting the total amount of principal and interest by the interest rate that would beassumed if similar bonds were issued, by category based on internal rating and term, and is classified as Level 3 fair value because the discount rate is unobservable.
Notes regarding securities by purpose of holding are described in “6. Securities and trading account securities.”
Loans and bills discounted:
The fair value of loans and bills discounted is calculated by discounting the total amount of principal and interest by the interest rate that would be applicable to a similar
new loan based on the loan type, internal rating, and term, and is classified as Level 3 fair value because the relevant discount rate is unobservable. For loans to bankrupt,
substantially bankrupt and likely to go bankrupt borrowers, reserve for possible loan losses is provided based on the present value of estimated future cash flows or theamount expected to be collected through collateral and guarantees, etc. As the fair value approximates the amount of loans less the amount of reserve for possible loan
losses on the consolidated balance sheet as of the end of the fiscal year, this value is used as fair value and classified as Level 3 fair value.
For loans and bills discounted that do not have a repayment date due to characteristics such as limiting such loans to the scope of collateral assets, book value is usedas fair value because the fair value is assumed to approximate the book value based on the expected repayment period and interest rate terms, etc. Such loans and bills
discounted are classified as Level 3 fair value.
Liabilities
Deposits and Negotiable certificates of deposit:
For demand deposits, the amount payable on demand at the end of the fiscal year (book value) is considered to be the fair value. The fair value of time deposits is calculated
as the present value of future cash flows discounted by a certain period of time. The discount rate used is the interest rate applicable to new deposits. For those with short
deposit terms (6 months or less), book value is used as fair value because the fair value approximates the book value. Such fair value is classified as Level 2 fair value.
Borrowed money:
The present value of borrowed money is calculated by discounting the total amount of principal and interest of the relevant borrowings, classified by a certain period oftime, by the interest rate assumed for similar borrowings.
For those with floating interest rates, the book value is used as the fair value because the fair value is considered to approximate the book value since the floating interest
rate reflects the market interest rate in a short period of time and the credit conditions of the Bank and its consolidated subsidiaries have not changed significantly since
the borrowings were executed. For those with short contractual terms (1 year or less), book value is used as fair value because the fair value approximates the book value.
Such fair value is classified as Level 2 fair value.
Derivative transactions:
For exchange-traded transactions, those for which unadjusted quoted prices in active markets are available are classified as Level 1 fair value.
For over-the-counter transactions, fair value is calculated using valuation techniques such as present value techniques and option pricing models with inputs such as
interest rates, exchange rates, and volatility. In addition, price adjustments are made based on the credit risk of the counterparty and the Bank’s own credit risk. When
unobservable inputs are not used or their effect is not material, the Bank classifies the instruments as Level 2 fair value, and when significant unobservable inputs are used,
the Bank classifies the instruments as Level 3 fair value.

*Investment trusts, etc. to which the transitional treatment provided in Paragraph 26 of the “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.
31, July 4, 2019) has been applied are not included in the table above. The amount of such investment trusts, etc. in the consolidated balance sheet is ¥179,251 million ($1,464,588 thousand).

39

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

40

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements
23. Accrued retirement benefits(Note 2) Information about Level 3 fair value of financial instruments measured at fair value(1) Quantitative information on significant unobservable inputs
2022
Securities:
Available-for-sale securities:
Privately-subscribed bonds

Valuationtechniques

Significant
unobservable
inputsRange of inputs

Weighted
average of inputs

Present value
technique

Credit spread

0.04% to 0.27%

0.08%(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 thereporting period included in profit or loss for the period
Millions of yen
Securities
Available-for-sale securities
Privately-subscribedbonds
Structured bonds
2022
Beginning balance.............................................................................
¥23,378¥36,964
Profit or loss or other comprehensive income for the period
Recorded in profit or loss (*1) .......................................................
0(1,597)
Recorded in other comprehensive income (*2) ...................................
(27)
1,279
Purchases, sales, issuances, and settlements (net) ......................................
3,014(21,477)
Transfer into Level 3 (*3)...................................................................
——
Transfer out of Level 3 (*4) ................................................................
——
Ending balance.................................................................................
¥26,365¥15,170
Gains or losses on valuation of financial assets and financial liabilities heldat the end of the fiscal year included in profit or loss for the period..............
¥    —¥    —(2) Defined benefit plan(a) Reconciliation of retirement benefit obligations at beginning and end of period

Thousands of U.S. dollars
Securities
Available-for-sale securities
Privately-subscribedbonds
Structured bonds
2022
Beginning balance.............................................................................
$191,012$302,018
Profit or loss or other comprehensive income for the period
Recorded in profit or loss (*1) .......................................................
0(13,048)
Recorded in other comprehensive income (*2) ...................................
(220)
10,450Purchases, sales, issuances, and settlements (net) ......................................
24,626(175,480)
Transfer into Level 3 (*3)...................................................................
——
Transfer out of Level 3 (*4) ................................................................
——
Ending balance.................................................................................
$215,417$123,948
Gains or losses on valuation of financial assets and financial liabilities heldat the end of the fiscal year included in profit or loss for the period..............
$  —
$  —

(b) Reconciliation of pension assets at beginning and end of period(*1) Included in “other operating income” and “other operating expenses” in the consolidated statements of income.
(*2) Included in “net unrealized gains (losses) on available-for-sale securities” under “other comprehensive income” in the consolidated statements of comprehensive income.
(*3) Transferred out of Level 2 fair value into Level 3 fair value. Not applicable for the current fiscal year.
(*4) Transferred out of Level 3 fair value into Level 2 fair value. Not applicable for the current fiscal year.

(3) Description of valuation processes used for fair value measurements
The Group’s risk management department and middle office have established policies and procedures for the calculation of fair value, and the front office formulatesa fair value model in accordance with these policies and procedures. The fair value calculated by the back office is verified by the middle office to ensure theappropriateness of the fair value valuation model and inputs, and the appropriateness of the classification of fair value levels. The results of the verification are reported
to the risk management department each fiscal year to ensure the appropriateness of the fair value calculation policies and procedures.
The fair value model utilizes observable data to the extent possible. In cases where quoted market prices obtained from third parties are used, the Group verifies
the appropriateness of the prices by comparing them with recalculated results using observable inputs.
(4) Description of sensitivity of the fair value measurement to changes in significant unobservable inputs
Credit spread:
The credit spread is the additional interest rate included in the coupon rate of the privately-subscribed bonds and is an estimate calculated based on the past one yearof issuance. A significant increase (decrease) in the credit spread would result in a significant decrease (increase) in the fair value.

41(d) Breakdown of retirement benefit costs(1) Overview of retirement benefit scheme adopted by the Bank
As defined-benefit type plans, the Bank has established a contract-type defined
benefit corporate pension plan and a retirement lump-sum payment plan. In
some cases, an extra severance package is provided to employees on theirretirement and so on. In addition, the Bank has set up a retirement benefit trust.
The Bank’s consolidated subsidiaries have established a retirement lumpsum payment plan as defined-benefit type plans, and a defined contribution
pension plan as defined-contribution type plan. Further, for the retirement
lump-sum payment plan of consolidated subsidiaries, net defined benefit
liability and retirement benefit costs are calculated by the simplified method.

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

For the years ended March 31,
Retirement benefit obligations at
beginning of period................
Service costs*....................
Interest costs.....................
Actuarial differences............
Retirement benefits paid.......
Prior service costs...............
Retirement benefit obligations at
end of period........................

¥58,818
1,608
139
260
(2,061)—¥57,403
1,573
136
1,798
(2,093)—$480,578
13,1381,135
2,124(16,839)—¥58,765¥58,818$480,145*Retirement benefit costs of consolidated subsidiaries that apply the simplified method are
all recorded within “Service costs.”

For the fiscal years ended March 31,
Pension assets at beginning of
period................................
Expected return on pension
assets............................
Actuarial differences............
Contribution from employer....
Retirement benefits paid.......
Pension assets at end of period......

Thousands of
U.S. dollars
2022

Millions of yen
2021
2022
¥66,335¥58,919$541,996

1,160
(396)
1,256
(1,522)¥66,833

726
6,875
1,328
(1,514)¥66,335

9,477(3,235)
10,262(12,435)$546,065(c) Reconciliation of retirement benefit obligations and pension assets at end of period andnet defined benefit liability and net defined benefit asset recorded in the consolidatedbalance sheet

As of March 31,
Retirement benefit obligations offunded plan..........................
Pension assets..........................
Retirement benefit obligations of
unfunded plan.......................
Net amount of liabilities and assets
recorded in consolidated balance
sheet..................................

As of March 31,
Net defined benefit liability..........
Net defined benefit asset.............
Net amount of liabilities and assets
recorded in consolidated balance
sheet..................................

Thousands of
U.S. dollars
2022

Millions of yen
2021
2022
¥ 58,765(66,833)(8,067)—¥ (8,067)¥ 58,818 $ 480,145(66,335) (546,065)(7,516)(65,912)——¥ (7,516) $ (65,912)

Thousands ofMillions of yen
U.S. dollars
2021
2022
2022
¥   204¥   208$ 1,699(7,721)(8,276)(67,619)¥(8,067)¥(7,516)

91
—

708
—

743
—

¥  678¥1,691$ 5,539*Retirement benefit costs of consolidated subsidiaries that use the simplified method arerecorded in a lump-sum in “Service costs.”

Thousands of
U.S. dollars
2022

Millions of yen
2021
2022

For the fiscal years ended March 31,
Service costs*..........................
Interest costs...........................
Expected return on pension assets.
Amortization of actuarial
differences...........................
Amortization of past service costs.....
Retirement benefit costs fordefined benefit plans...............

Thousands ofMillions of yen
U.S. dollars
2021
2022
2022
¥1,573¥1,608$13,138
136
139
1,135
(726)
(1,160)(9,477)$(65,912)(e) Remeasurements of defined benefit plans in other comprehensive income
The breakdown of items (before adjusting for tax effects) recorded inremeasurements of defined benefit plans.

For the fiscal years ended March 31,
Actuarial differences..................
Total.....................................

Thousands ofMillions of yen
U.S. dollars
2021
2022
2022
¥5,785¥(566)$(4,624)¥5,785¥(566)$(4,624)(f) Remeasurements of retirement benefit plans in accumulated other comprehensive
income
The following is a breakdown of items (before adjusting for tax effects) recorded
in remeasurements of retirement benefit plans:

As of March 31,
Unrecognized actuarial differences.
Total.....................................

Thousands ofMillions of yen
U.S. dollars
2021
2022
2022
¥(1,357) $(15,720)¥(1,924)¥(1,357) $(15,720)¥(1,924)(g) Items related to pension assets(i) The following is the percentage of total pension assets by main category:
As of March 31,
Bonds.....................................................
Stocks.....................................................
Life insurers’ general account........................
Other.....................................................
Total......................................................

2022
12.8%
34.0
24.9
28.3
100.0%

2021
14.9%
45.1
24.9
15.1
100.0%

Note: Total pension assets include retirement benefit trusts established for the
corporate pension plan (18.0% and 19.5% as of March 31, 2022 and 2021,
respectively) and retirement benefit trusts established for the retirement
lump-sum payment plan (21.0% and 20.3% as of March 31, 2022 and 2021,
respectively).

(ii) Method for determining expected long-term rate of return on pension assets:
To determine expected long-term rate of return on pension assets, the Bank
considers the current and projected pension asset allocations, as well as
long-term rate of current returns and expected returns from each category
consisting of pension assets.
(h) Assumptions for making actuarial calculation
Major assumptions for actuarial calculations at the end of the fiscal year2022
1) Discount rate.................................
0.23%
2) Expected long-term rate of return........ mainly 2.00%
to 3.00%
3) Assumed salary increase rate...............
3.20%

2021
0.23%
2.00%
3.20%

(3) Defined contribution pension plan
The required contribution to the defined contribution plans of consolidated
subsidiaries was ¥7 million ($57 thousand) and ¥7 million for the years ended
March 31, 2022 and 2021, respectively.

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

42

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements
24. Stock options

25. Derivative transactions

1. Amount and title of expense recognized for stock options(1) Type of transactions
The Group undertakes the following derivative transactions: interest-rate swaps
and others for interest rate-related transactions; currency swaps, forward
exchange contracts and currency options for currency-related transactions; andbond futures for bond-related transactions.

Not applicable.

2. Stock option details, size, and changes(1) Stock option details
2012 stock options 2013 stock options 2014 stock options 2015 stock options 2016 stock options
Category and number of grantrecipients.................................

The Bank’s ten
directors

The Bank’s ten
directors

The Bank’s ten
directors(excluding
outside directors)

The Bank’s nine
directors(excluding
outside directors)

The Bank’s eight
directors(excluding
outside directors)

Type and number of stock options
granted (Note)........................... Common stock:
17,500 shares
Grant date................................... July 24, 2012
Vesting terms............................... No vesting terms
Service period............................... No service period
specifiedExercise period............................. July 25, 2012 toJuly 24, 2042

Common stock:
17,250 shares
July 23, 2013
No vesting terms
No service period
specified
July 24, 2013 toJuly 23, 2043

Common stock:
13,660 shares
July 25, 2014
No vesting terms
No service period
specified
July 26, 2014 to
July 25, 2044

Common stock:9,430 shares
July 24, 2015
No vesting terms
No service period
specified
July 25, 2015 toJuly 24, 2045

Common stock:
13,770 shares
July 26, 2016
No vesting terms
No service period
specified
July 27, 2016 toJuly 26, 2046

Note: Converted to the number of shares equivalent to that after the 1-for-10 reverse stock split implemented on October 1, 2018.

(2) Stock option size and changes(a) Number of stock options
2012 stock options 2013 stock options 2014 stock options 2015 stock options 2016 stock options
Prior to vesting (shares):
Prior fiscal year end..................
Granted.................................
Expired.................................
Vested shares..........................
Unvested shares.......................
After vesting (shares):
Prior fiscal year end..................
Vested shares..........................
Exercised...............................
Expired.................................
Unexercised............................

1,460
—
—
1,460
—

1,440
—
—
1,440
—

2,280
—
—
1,140
1,140

2,580
—
—
860
1,720

5,160
—
—
1,480
3,680

—
1,460
1,460
—
—

—
1,440
1,440
—
—

—
1,140
1,140
—
—

—
860
860
—
—

—
1,480
1,480
—
—

Note: Converted to the number of shares equivalent to that after the 1-for-10 reverse stock split implemented on October 1, 2018.

(b) Unit price information (in year)
2012 stock options 2013 stock options 2014 stock options 2015 stock options 2016 stock options
Exercise price............................... Per share: ¥    1 Per share: ¥    1 Per share: ¥    1 Per share: ¥    1 Per share: ¥    1Average price at exercise.................. Per share: ¥1,462 Per share: ¥1,462 Per share: ¥1,462 Per share: ¥1,462 Per share: ¥1,462
Fair value on grant date................... Per share: ¥2,560 Per share: ¥3,210 Per share: ¥3,350 Per share: ¥4,090 Per share: ¥2,850(2) Aims and policy
The Bank offers derivative products to meet customer needs, and to minimize
risk from exchange rate and interest rate fluctuations regarding the Bank’s assets
and liabilities.
Fair value of interest rate-related transactions as of March 31,
2022 and 2021 were as follows:

2022
Over the Counter
Interest rate swaps:
Fixed ratereceivable/variable rate
payable...........
Variable ratereceivable/fixed
rate payable......
Others:Sell...................
Buy...................
Total....................

2021
Over the Counter
Interest rate swaps:
Fixed ratereceivable/variable rate
payable...........
Variable ratereceivable/fixed
rate payable......
Others:Sell...................
Buy...................
Total....................

Millions of yen
Contracted value
Appraised
Total
Over 1 year Fair value profit/(loss)¥32,657¥31,631¥378

43

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

2022
Over the Counter
Interest rate swaps:
Fixed ratereceivable/variable rate
payable...........
Variable ratereceivable/fixed
rate payable......
Others:Sell...................
Buy...................
Total....................

2022
Over the Counter
Currency swaps.......
Forward exchange
contracts:
Sell................
Buy................
Currency options:Sell................
Buy................
Others:Sell................
Buy................
Total....................

¥378

32,657

31,631

14

14

7,437
7,437

7,299
7,299

(16)
17
¥392

95
(9)
¥478

Millions of yen
Contracted value
Appraised
Total
Over 1 year Fair value profit/(loss)¥28,051¥27,199

¥ 633

¥ 633

28,051

27,199

(292)

(292)

6,911
6,911

6,788
6,788

(4)
4
¥ 341

100
(18)
¥ 423

Note: Converted to the price equivalent to that after the 1-for-10 reverse stock split implemented on October 1, 2018.

3. Method for estimating number of vested stock options
In general, as it is difficult to rationally estimate the future number of expired
stock options only the actual number of expired stock options is reflected.

Fair value of currency-related transactions as of March 31, 2022 and 2021 wereas follows:

Thousands of U.S. dollars
Contracted value
Appraised
Total
Over 1 year Fair value profit/(loss)$266,827$258,444$3,088$3,088266,827

258,444

114

114

60,76460,764

59,63759,637(130)138$3,202776(73)$3,9052021
Over the Counter
Currency swaps.......
Forward exchange
contracts:
Sell................
Buy................
Currency options:Sell................
Buy................
Others:Sell................
Buy................
Total....................

2022
Over the Counter
Currency swaps.......
Forward exchange
contracts:
Sell................
Buy................
Currency options:Sell................
Buy................
Others:Sell................
Buy................
Total....................

Millions of yen
Contracted value
Appraised
Total
Over 1 year Fair value profit/(loss)¥  6,748¥ 6,748¥     3¥     3111,260
88,78129,751
28,073(4,603)
3,886(4,603)
3,886

118,524
118,524

87,941
87,941(4,326)
4,291

964
67

71,571
71,571

71,571
71,571(49)
16¥  (782)(32)
864¥ 1,149

Millions of yen
Contracted value
Appraised
Total
Over 1 year Fair value profit/(loss)¥ 36,582¥  6,397¥     5¥     594,01743,640

6,302
3,798

(1,810)1,411(1,810)1,411

286,218
286,218

202,296202,296(7,555)
7,555

6,042
(3,084)24,18924,18924,18924,18923(23)¥  (393)

29296¥ 2,891

Thousands of U.S. dollars
Contracted value
Appraised
Total
Over 1 year Fair value profit/(loss)$ 55,135$ 55,135$     24$     24

909,061
725,394

243,083
229,373(37,609)31,750(37,609)31,750968,412
968,412718,530
718,530(35,346)
35,0607,876
547

584,778584,778584,778584,778(400)130$ (6,389)

(261)
7,059
$  9,388

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

44

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements(3) Derivative transactions subject to hedge accounting
The following are the contracted value or the amount equivalent to the principal and the fair value for each type of derivative transaction subject to hedge accounting asof the end of the fiscal year. The contracted value, other price or value below does not indicate by itself the market risk of the derivative transaction.
(a) Interest rate-related transactions
As of March 31, 2022

Hedge accounting method

Type
Main hedged item
Interest rate swaps
Available-for-salesecurities
General accounting rules Variable rate receivable/fixed(bonds)rate payable
Total

Contracted value¥149,100Millions of yen
Contracted value over
1 year¥124,100

Fair value¥3,477¥3,477

As of March 31, 2021

Type
Main hedged item
Interest rate swaps
Available-for-salesecurities
General accounting rules Variable rate receivable/fixed(bonds)rate payable
Total

Contracted value¥247,695

Millions of yen
Contracted value over
1 yearHedge accounting method

TypeInterest-rate swaps
General accounting rules Variable rate receivable/fixed
rate payable
Total¥235,695¥3,797¥3,797Main hedged item
Available-for-sale securities(bonds)Thousands of U.S. dollars
Contracted value
Contracted value
over 1 year
$1,218,236$1,013,971

Fair value$28,409$28,409

Thousands of U.S.
dollars
2022$597,205
99,59924,961
19,732
14,323
3,162
768
36,628(b) Currency-related transactions
As of March 31, 2022

Hedge accounting method

Main hedged item
Foreign currency receivables
Total

Contracted value¥33,192
56,463

Millions of yen
Contracted value over
1 year¥12,349—

Contracted value¥26,853
42,506

Millions of yen
Contracted value over
1 year¥24,639—

Fair value¥(1,358)(1,605)¥(2,964)

As of March 31, 2021

Hedge accounting method

Main hedged item
Foreign currency receivables
Total

Fair value¥(1,289)(124)¥(1,413)

As of March 31, 2022

Hedge accounting method

Main hedged item
Foreign currency receivables
Total(1) Overview of reportable segments
Reportable segments are the Group’s constituent business units for which separate financial data can be obtained and that are examined periodically by the Board of
Directors for the purposes of determining the allocation of management resources and evaluating operating results.
The Group is engaged mainly in banking activities. Consolidated subsidiaries provide financial services primarily engaging in leasing activities. The Bank and its
individual consolidated subsidiaries, which comprise a corporate group, each prepare business and other plans while developing business activities.
As a result, the Group has identified the two reportable segments of banking and leasing, which comprise the basic segments of the Bank and its individual consolidated
subsidiaries by operation. Operations under the banking segment include the provision of services relating deposits, loans, marketable securities and related investment aswell as foreign currency exchange. Operations under the leasing segment include leasing and other operations conducted by Hyakujushi Lease Co., Ltd.
(2) Calculation methods for ordinary income, profit and loss, assets and liabilities and other items by reportable segment
The method of accounting treatment applied to reportable segments is the same as that described in “3. Significant accounting policies.”
Moreover, reportable segment profit is based on ordinary profit.
Intersegment ordinary income is based on transaction prices between third parties.
(3) Information regarding ordinary income, profit and loss, assets and liabilities and other items by reportable segment
Information about reportable segments of the Bank and its consolidated subsidiaries for the years ended March 31, 2022 and 2021 is as follows:

Note: In general, deferred hedge accounting method is applied to hedging transactions for interest rate risk arising from financial assets.

Type
Currency swaps
General accounting rules
Monetary swaps

Category
Operating income.............................................................................
Of which, Fees and commissions.....................................................
Foreign exchange services.............................................................
Deposit and loan services..............................................................
Securities-related services.............................................................
Guarantee services......................................................................
Agency services..........................................................................
Others.....................................................................................

Millions of yen
2022¥73,092
12,190
3,055
2,415
1,753
387
94
4,483

27. Segment information
Fair value

As of March 31, 2022

Type
Currency swaps
General accounting rules
Monetary swaps

Disaggregation of revenue from contracts with customers(Note) The above table also includes income based on “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10).

Hedge accounting method

Type
Currency swaps
General accounting rules
Monetary swaps

26. Revenue recognition

Thousands of U.S. dollars
Contracted value overContracted value
1 year$271,198$100,898
461,336—2022
Ordinary income:Outside customers............................
Inter-segment transactions...................
Total...................................................
Segment profit.......................................
Segment assets.......................................
Segment liabilities...................................
Other items:.........................................
Depreciation...................................
Interest income................................
Interest expenses..............................
Gain from disposal of tangible assets.......
Loss from disposal of tangible assets.......
Impairment losses.............................
Tax expenses...................................
Increases in tangible fixed assets andintangible fixed assets......................

Total

Millions of yen
Otherbusinesses

Total

Adjustment

Consolidated
total

Banking

Leasing¥   63,356
592¥   63,948¥   13,781¥5,726,730¥5,458,147¥ 7,727627¥ 8,355¥   327¥29,219¥24,286¥   71,083
1,220¥   72,303¥   14,109¥5,755,950¥5,482,434¥ 2,009
3,403¥ 5,412¥ 1,643¥22,797¥ 9,204¥   73,092
4,624¥   77,716¥   15,752¥5,778,748¥5,491,638¥—(4,624)¥ (4,624)¥   (564)¥(31,481)¥(28,708)¥   73,092—¥   73,092¥   15,187¥5,747,266¥5,462,929¥    2,796
41,338
1,515
0
122
72
2,782

¥   117
272
73
76
0
—
83

¥    2,913
41,611
1,588
76
122
72
2,866

¥   288
92
30
—
8
—
496

¥    3,201
41,703
1,618
76
131
72
3,362

¥     47
(567)
(109)
(20)
—
—
(26)

¥    3,249
41,136
1,508
55
131
72
3,336

2,458

2

2,460

193

2,653

27

2,680

Fair value$(11,095)(13,113)$(24,217)

Note: In general, deferred hedge accounting is applied according to “Accounting and Auditing for Foreign Currency Transactions in the Banking Industry” (JICPA Industry Committee Practical
Guideline No. 25).

45

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

46

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements

2021
Ordinary income:Outside customers............................
Inter-segment transactions...................
Total...................................................
Segment profit.......................................
Segment assets.......................................
Segment liabilities...................................
Other items:.........................................
Depreciation...................................
Interest income................................
Interest expenses..............................
Gain from disposal of tangible assets.......
Loss from disposal of tangible assets.......
Impairment losses.............................
Tax expenses...................................
Increases in tangible fixed assets andintangible fixed assets......................

Banking

Leasing

Total

Millions of yen
Otherbusinesses

Total

Adjustment

Consolidated
total¥   58,985
572¥   59,557¥    3,837¥5,355,513¥5,078,673¥ 7,899563¥ 8,463¥   316¥30,613¥25,932¥   66,884
1,136¥   68,021¥    4,154¥5,386,126¥5,104,605¥ 2,066
3,489¥ 5,555¥ 1,555¥22,158¥ 9,266¥   68,950
4,625¥   73,576¥    5,710¥5,408,285¥5,113,872¥—(4,625)¥ (4,625)¥   (402)¥(32,716)¥(30,002)¥   68,950—¥   68,950¥    5,308¥5,375,569¥5,083,870¥    2,853
40,805
2,279
0
54
161
1,955

¥   118
234
83
40
0
—
69

¥    2,972
41,040
2,363
41
54
161
2,025

¥   292
98
37
—
20
97
506

¥    3,265
41,139
2,400
41
74
258
2,531

¥     66
(485)
(114)
(1)
—
(97)
15

¥    3,331
40,653
2,286
39
74
161
2,546

2,829

3

2,833

353

3,187

(360)

2,826

Adjustment

Consolidated
total

Banking2022
Ordinary income:Outside customers............................ $   517,656Inter-segment transactions...................
4,836
Total................................................... $   522,493
Segment profit....................................... $   112,599
Segment assets....................................... $46,790,832
Segment liabilities................................... $44,596,347
Other items:.........................................
Depreciation................................... $    22,845
Interest income................................
337,756
Interest expenses..............................
12,378Gain from disposal of tangible assets.......
0
Loss from disposal of tangible assets.......
996
Impairment losses.............................
588
Tax expenses...................................
22,730
Increases in tangible fixed assets andintangible fixed assets......................
20,083Thousands of U.S. dollars
Other
Total
businesses
Total

Leasing$ 63,134
5,122$ 68,265$  2,671$238,736$198,431$   580,790
9,968$   590,759$   115,279$47,029,577$44,794,787$ 16,414
27,804$ 44,219$ 13,424$186,265$ 75,202$   597,205
37,780$   634,986$   128,703$47,215,850$44,869,989—(37,780)$ (37,780)$  (4,608)$(257,218)$(234,561)$   597,205—$   597,205$   124,086$46,958,624$44,635,419$    955
2,222
596
620
0
—
678

$    23,800
339,986
12,974620
996
588
23,416$  2,353
751
245
—
65
—
4,052

$    26,154
340,738
13,220
620
1,070
588
27,469$     384
(4,632)
(890)
(163)
—
—
(212)

$    26,546
336,105
12,321
449
1,070
588
27,25716

20,0991,576

21,676$220

21,897

Notes: 1. In place of sales, which are usually posted by companies other than banks, the Bank and its consolidated subsidiaries report ordinary income. In addition, adjusted differences arerecorded as the difference between ordinary income and ordinary income recorded on consolidated statements of income.
2. The Other businesses segment is comprised of business segments not included in reportable segments and mainly consists of credit card and credit guarantee operations.
3. The adjusted amounts of segment profit, segment assets, segment liabilities, depreciation, interest income, interest expenses, gain from disposal of tangible assets, impairment losses,
tax expenses and increases in tangible fixed assets and intangible fixed assets are recorded mainly as eliminations.
4. Segment profit is adjusted with ordinary profit recorded on consolidated statements of income.

47

Th e Hyakujushi Bank, Ltd . Integrated R ep ort 2022

(Associated information)
1. Information on each service
Millions of yen
2022
Income from external customers...........................

Securities investment
Lending services
services¥27,957¥20,201

2021
Income from external customers...........................

Securities investment
Lending services
services¥27,647¥19,633

2022
Income from external customers...........................

Thousands of U.S. dollars
Securities investment
Lending services
services
Leasing services$228,425$165,054$63,134

Leasing services¥7,727Other¥17,205

Total¥73,092

Other¥13,770

Total¥68,950

Other$140,575

Total$597,205

Millions of yen
Leasing services¥7,8992. Information on each area
(1) Ordinary income	Information is omitted since the amount attributed to income from external customers in Japan accounts for more than 90% of the ordinary income in the
consolidated statements of income.
(2) Tangible fixed assets
Information is omitted since the amount attributed to tangible fixed assets located in Japan accounts for more than 90% of the tangible fixed assets in the
consolidated balance sheets.
3. Information on each major customer
	Information is omitted since there are no specific customers from whom ordinary income accounts for 10% or more of ordinary income in the consolidated statements
of income.
(Information on impairment losses on fixed assets by reportable segment)
Information regarding impairment losses on fixed assets by reportable segment for the years ended March 31, 2022 and 2021 was as follows:
Millions of yen
2022
Impairment losses on fixed assets..........................

Banking¥72

Leasing
¥—

Total
¥72

Other
¥—

Corporate/
Elimination
¥—

Total
¥72

Corporate/
Elimination
¥(97)

Total
¥161

Corporate/
Elimination
$—

Total
$588

Millions of yen
2021
Impairment losses on fixed assets..........................

Banking¥161

Leasing
¥—

Total
¥161

Other
¥97

Thousands of U.S. dollars
2022
Impairment losses on fixed assets..........................

Banking$588

Leasing
$—

Total
$588

Other
$—

T he H yak ujushi Bank, Ltd . Integrated Rep ort 2022

48

The Hyakujushi Bank, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements
28. Related-party transactions

30. Borrowed money

Not applicable to the fiscal years ended March 31, 2022 and 2021.

The weighted average interest rate applicable to the total balance of borrowed
money as of March 31, 2022 is 0.07%.

29. Per share data

Amounts per share as of March 31, 2022 and 2021 and for the fiscal years thenended were summarized as follows:
Yen
U.S. dollars
2021
2022
2022
Net assets per share..................... ¥9,639.96 ¥9,892.54$78.764
Basic earnings per share................
86.95
396.83$3.242
Diluted earnings per share.............
86.91
396.72$3.241

Annual maturities of borrowed money as of March 31, 2022 are as follows:
Millions of yen
Up to 1 year.................................... ¥424,827
Over 1 year, up to 2 years...................
4,000
Over 2 years, up to 3 years..................
90,239Over 3 years, up to 4 years..................
178,232
Over 4 years, up to 5 years..................
1,408
Over 5 years....................................
1,909

Thousands of
U.S. dollars$3,471,092
32,682
737,306
1,456,262
11,504
15,597

Notes: 1. Net assets per share figures are calculated on the basis of the following.

Net assets...............................
Amount excluded from net assets..
(of which, share subscription
rights)................................
Net assets attributable to common
stock at the fiscal year-end.......
Number of common stock at the
fiscal-year end for calculation of
net assets per share (inthousands)...........................

Millions of yen,Thousands of
except number of shares
U.S. dollars
2021
2022
2022
¥291,699 $2,323,196¥284,336
41
21
171
21

41

171

284,315

291,657

2,323,024

29,49329,482

2. Basic and diluted earnings per share figures are calculated on the basis of thefollowing.

Basic earnings per share
Profit attributable to owners ofparent.............................
Amount not attributable tocommon stockholders.........
Profit attributable to common
stockholders.....................
Average number of common
stock during the year (inthousands).......................
Diluted earnings per share
Increase in number of common
stock (in thousands)............
(of which, sharesubscription rights).........

Millions of yen,
except number of shares
2021
2022

Thousands of
U.S. dollars
2022¥11,702¥2,565$95,612———

11,702

2,565

95,61229,49029,499

8

12

8

12

3. The Bank’s own stock remaining in the BIP Trust recorded as treasury stock instockholders’ equity is included in treasury stock to be deducted in thecalculation of net assets per share, basic earnings per share, and diluted earnings
per share.
			 The number of the said treasury stock deducted at year-end in the calculationof net assets per share was 87 thousand shares and 92 thousand shares as of March
31, 2022 and 2021, respectively. Moreover, the average number of the said
treasury stock deducted in the calculation of basic earnings per share and diluted
earnings per share during the year was 88 thousand shares and 76 thousand
shares for the fiscal years ended March 31, 2022 and 2021, respectively.

31. Subsequent event

Acquisition and cancellation of treasury stock
At a meeting of the Board of Directors held on May 13, 2022, the Bank resolvedto acquire its treasury stock in accordance with the provisions of Article 156 of
the Companies Act as applied mutatis mutandis pursuant to the provisions ofArticle 165, Paragraph 3 of the same Act, and to cancel its treasury stock inaccordance with the provisions of Article 178 of the Companies Act, which was
implemented as follows (Note 1).
In addition, at a meeting of the Board of Directors held on August 9, 2022,
the Bank resolved to cancel its treasury stock in accordance with the provisionsof Article 178 of the Companies Act, and the cancellation was implemented asfollows (Note 2).
1. Details of treasury stock acquired(1) Type of shares acquired: Common stock(2) Total number of shares acquired: 583,900 shares(3) Total cost of stock acquired: ¥999.8715 million ($8,169.552 thousand)(4) Period of acquisition of treasury stock: From May 16, 2022 to July 25, 2022
(5) Method of acquisition: Market purchase on the Tokyo Stock Exchange
2. Details of treasury stock cancelled(1) Type of shares cancelled: Common stock(2) Total number of shares cancelled:
583,900 shares (Note 1)
316,100 shares (Note 2)
Total 900,000 shares 	(Ratio to the total number of shares issued andoutstanding before cancellation is 3.00%)(3) Date of cancellation: August 19, 2022(4) Total number of shares issued and outstanding after cancellation:
29,100,000 shares

Independent Auditor’s Report

The Board of Directors
The Hyakujushi Bank, Ltd.
OpinionWe have audited the accompanying consolidated financial statements of The Hyakujushi Bank,
Ltd. and its consolidated subsidiaries (the Group), which comprise the consolidated balance
sheet as at March 31, 2022, and the consolidated statements of income, comprehensive income,changes in net assets, and cash flows for the year then ended, and notes to the consolidated
financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at March 31, 2022, and its
consolidated financial performance and its consolidated cash flows for the year then ended inaccordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Consolidated Financial Statements section of our report. We are independent of
the Group in accordance with the ethical requirements that are relevant to our audit of theconsolidated financial statements in Japan, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significancein our audit of the consolidated financial statements of the current period. These matters wereaddressed in the context of the audit of the consolidated financial statements as a whole, and informing the auditor’s opinion thereon, and we do not provide a separate opinion on thesematters.
Determination of debtor classification with respect to entities for which an assessment ofbusiness evaluation is necessary, entities for which a business improvement plan has beenformulated and entities for which a downgrade in the debtor classification has a certain degreeof impact on profit or loss of the Group.
Description of Key Audit Matter

Auditor’s Response

The Group has a wide-area retail network inJapan in 11 prefectures surrounding the Seto
Inland Sea and urban areas, mainly in

In considering the appropriateness of the
debtor classification, our audit proceduresconsisted primarily of the following:

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Kagawa Prefecture, with its lending
operations representing a core businessactivity. As of March 31, 2022, loans andbills discounted and advances of 3,159,889
million yen were recorded in the consolidatedbalance sheet, accounting for 54% ofconsolidated assets in the amount of
5,747,266 million yen.

・We evaluated the Group’s internal controls
for determining the debtor classification.
The controls tested included, but were notlimited to, controls to evaluate the accuracy
and completeness of schedules used indetermining the debtor classification andcontrols over the underlying credit rating
data concerning the debtor.

The collectability of loans to customers by
the Group is subject to uncertainties mainly
due to economic trends in Japan andoverseas, fluctuations in the businessconditions of debtors who operate in Kagawa
Prefecture and the surrounding region, andfluctuations in the economic environment
such as a decline in the value of secured realestate and also the impact of the spread of thenovel coronavirus disease. As a result,provision for additional losses arising fromnew non-performing loans may affect theGroup’s financial position and cash flow
conditions.

・Regarding when the novel coronavirus will
be contained, management’s assumptions
were evaluated by comparing them withthe economic forecasts published byexternal organizations.

As such, the Group calculates the amounts of
expected loans that cannot be collected andrecords them as reserve for possible loan
losses.
The reserve for possible loan losses includedin the consolidated balance sheet as of March
31, 2022 was 18,285 million yen. Details,
such as calculation methodology, aredescribed in Section 6 “Reserve for possible
loan losses,” in Note 3 “Significant
Accounting Policies” to the consolidated
financial statements.
The reserve for possible loan losses iscalculated in accordance with the Group’s
pre-established self-assessment provision
policy. The calculation process includes thedetermination of the debtor classification,
which is determined by assessing the relevant
debtor’s ability to repay loans based on therepayment status, financial position, businessperformance, and future prospects, including
the impact of the spread of the novel
coronavirus disease.
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・We selected samples taking into accountthe type of business, the location of theborrower, the financial position andrepayment capacity, the group’s lending
policy and potential credit risk estimatedfrom external information, including theimpact of the spread of the novel
coronavirus disease.
・We verified data on the recent repayment
status of sampled debtors, their financial
position, business performance, and future
cash flows, and other business prospects byinspecting information related to theGroup’s self-assessment, such as
explanatory materials including adescription of the business, borrowing andrepayment status, research materials
providing an understanding of the actual
financial position, financial statements, andthe trial balances, and, in addition, we
made inquiries to the loan department as
necessary to supplement our
understanding.
・We examined the reasonableness andfeasibility of business improvement plansby analyzing the trends from past results ofthe major planned items such as sales andprofits / losses of debtors, etc., evaluating
the accuracy of estimates based on thehistorical degree of achievement ofbusiness improvement plans in previous
years. We also made inquiries with theloan department as necessary to

In determining the classification of debtors, itis necessary to evaluate the ability of debtors
to repay their debts based on estimated future
cash flows and the rationality and feasibilityof management improvement plans,
especially for debtors who have obtainedloans following the Group’s examination of
their future business outlook and growthpotential (entities for which an assessment ofbusiness evaluation is necessary) and debtors
who have developed management
improvement plans (entities for which abusiness improvement plan has beenformulated). It is also important to evaluate
the performance outlook, etc., considering theimpact of the spread of the novel coronavirus
disease, for debtors who may have a certain
degree of impact profit or loss if theirclassification is revised downward.

supplement our understanding.

The abovementioned performance forecasts
for debtors, including debt repayment
capacity and business improvement plans, arebased on key assumptions such as forecasts ofsales and profits / losses of debtors in the
future. These assumptions will be affected by
the effects of the spread of the novel
coronavirus disease, changes in the businessenvironment surrounding the debtors and thesuccess or failure of business strategies.
Therefore, the judgment of the debtor
classification, which has a certain degree of
impact on profit or loss of the Group when adowngrade in the debtor classification occurs,
is highly dependent on the judgment ofmanagement.
Accordingly, we have determined that thedetermination of the debtor classification withrespect to entities for which an assessment ofbusiness evaluation is necessary, entities forwhich a business improvement plan has beenformulated and entities for which adowngrade in the debtor classification has acertain degree of impact on profit or loss of
the Group to be a key audit matter.

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Other Information
The other information comprises the information included in the INTEGRATED REPORT that
contains audited consolidated financial statements but does not include the consolidated
financial statements and our auditor’s report thereon. Management is responsible for preparationand disclosure of the other information. The Audit and Supervisory Committee is responsible foroverseeing the Group’s reporting process of the other information.
Our opinion on the consolidated financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is toread the other information and, in doing so, consider whether the other information is materiallyinconsistent with the consolidated financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and the Audit and Supervisory Committee for theConsolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with accounting principles generally accepted in Japan, andfor such internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, management is responsible for assessing theGroup’s ability to continue as a going concern and disclosing, as required by accounting
principles generally accepted in Japan, matters related to going concern.
The Audit and Supervisory Committee is responsible for overseeing the Group’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and toissue an auditor’s report that includes our opinion. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we
exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
・ Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive tothose risks, and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion.
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・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of
the consolidated financial statements is not expressing an opinion on the effectiveness of theGroup’s internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Group to cease tocontinue as a going concern.
・ Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentationin accordance with accounting principles generally accepted in Japan.
・ Obtain sufficient appropriate audit evidence regarding the financial information of theentities or business activities within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance ofthe group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit and Supervisory Committee regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide the Audit and Supervisory Committee with a statement that we have compliedwith the ethical requirements regarding independence that are relevant to our audit of theconsolidated financial statements in Japan, and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence, and whereapplicable, related safeguards.
From the matters communicated with the Audit and Supervisory Committee, we determine thosematters that were of most significance in the audit of the consolidated financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in our auditor’sreport unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected to outweighthe public interest benefits of such communication.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act ofJapan.

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Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect tothe year ended March 31, 2022 are presented solely for convenience. Our audit also included thetranslation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, suchtranslation has been made on the basis described in Note 1 to the consolidated financial
statements.
Ernst & Young ShinNihon LLC
Tokyo, Japan
September 26, 2022

/s/ Motoki Nagao
Motoki Nagao
Designated Engagement Partner
Certified Public Accountant/s/ Teruaki Kawaguchi
Teruaki Kawaguchi
Designated Engagement Partner
Certified Public Accountant

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Corporate Information

Corporate Information

Profile (as of March 31, 2022)* The Singapore Representative Office closed on June 17, 2022.

Head Office
Established
Total assets
Deposits and negotiable certificates of deposit
Loans and bills discounted
Paid-in capital
Total shares issued
Employees
OfficesNon-branch ATMs and CDs

5-1 Kamei-cho, Takamatsu, Kagawa
November 1, 1878
¥5,727.5 billion¥4,648.3 billion¥3,164.8 billion¥37.3 billion
30,000 thousand shares
2,060
131 (Head Office, 99 branches, 22 sub-branches, 6 Quick Square, 4 Consulting Plaza)
Overseas Representative Offices: 2 (Shanghai, Singapore)*
157 locations

VietnamBusiness cooperation
VIETCOMBANK
Foreign Investment Agency
Business collaboration
HDBank(Bank staff deployment)

General Meeting of Shareholders
Board of Directors
ChairmanPresident
Deputy President
Directors
Nomination and Remuneration GovernanceCommittee
Audit and Supervisory Committee
Audit and Supervisory
Committee Members

VariousCommittees
Executive
Committee

China
Representative Office

India
Business collaboration
State Bank of India

Corporate Headquarters

the Philippines
Business collaboration
Metropolitan Bank and Trust Company[Corporate Administration Sector]
Corporate Strategy Office
Corporate Planning Group
Corporate Planning
Financial Affairs Group
Division
Public Relations and SDGs Promotion Office
Tokyo Liaison Office
Risk Control Division

Risk Control Group
Credit Risk Control Group

Compliance Management
Division

Legal Compliance Group
Money Laundering Countermeasures Group

General Administration
Division

Compliance and Legal Affairs Office
General Administration Group
General Affairs Administration Group

Personnel Division

Personnel Planning Group
Salary and Welfare Group
Personnel Development GroupOperations Supervision
Division

Operations System Supervision GroupOperations Management GroupOperations Guidance Group
Systems Planning Group
Systems Management Group

Central Operations
DivisionCentral Operations Center
Operations Center
Business Support Center
Branch Support Center
Central Receivables Documents Center

Executive Secretariat
Office[Market Sector]

Treasury andInternational Division

Business and Planning Group
Market Business Group
Securities Operation Group
Market Management Group
Fund Securities Management Group
Foreign Exchange Business Support Group
Overseas Representative Offices

Consulting Division

List of Major Shareholders (as of March 31, 2022)
Name

Subsidiaries
Nihonbashi FudosanCo., Ltd.
Central Business
Division
Branches

Hyakujushi Business
Service Co., Ltd.

Sub-branches

Hyakujushi Jinzai
Center Corporation

Deposit andExchange
Operations Area
liaison & Loan
Operations Area

The Hyakujushi System
Service Co., Ltd.

Central Foreign
Exchange Branch

The Hyakujushi JCB
Card Co., Ltd.
The Hyakujushi DC
Card Co., Ltd.

Business Strategy Group
Degital Strategy Office
Channel Strategy Group
Branch Management Group
Customer Service Center

Hyakujushi Sogo
Hosho Co., Ltd.

Regional Vitalization Group

Retaile Promotion
Division

Asset Accumulation Group

Business Support
Division

Loan Business Center
Asset Business Center
DB Center

Credit Supervision
Division

Credit Planning Group
Credit Department
Ship Financing Office
Management Support Group
Credit Management Group
Real Estate Valuation and Financial Registration Center

Auditing DivisionInspection Group
Risk Audit Groupof shares held to the total
No. of shares held Ratio
number of shares outstanding(thousand shares) (excluding
treasury shares) (%)

Address

The Master Trust Bank of Japan, Ltd. (Trust Account)
Custody Bank of Japan, Ltd.
Hyakujushi Bank Employee Shareholding Association
NH Foods Ltd. (Note) 2
Nippon Life Insurance Company
TAIHEIYO CEMENT CORPORATION (Note) 3
Meiji Yasuda Life Insurance Company
NAMBA HOLDINGS CORPORATIONSUMITOMO LIFE INSURANCE COMPANY
Tadano Ltd.
Total

11-3, Hamamatsu-cho 2-Chome, Minato-ku, Tokyo
8-12, Harumi 1-Chome, Chuo-ku, Tokyo
5-1 Kamei-cho, Takamatsu-shi, Kagawa Prefecture
4-9, Umeda 2-Chome, Kita-ku, Osaka
6-6, Marunouchi 1-Chome, Chiyoda-ku, Tokyo
1-1, Koishikawa 1-chome, Bunkyo-ku, Tokyo
1-1, Marunouchi 2-Chome, Chiyoda-ku, Tokyo
9-1-2803, Oosaki 2-chome, Shinagawa-ku, Tokyo
18-24, Tsukiji 7-Chome, Chuo-ku, Tokyo
34, Shindenchoko, Takamatsu-shi, Kagawa Prefecture
–

2,986
1,872
641
632
629
595
569
556
500
438
9,422

10.09
6.32
2.16
2.13
2.12
2.01
1.92
1.87
1.69
1.48
31.85

(Notes)1. The 419 thousand treasury shares held by the Bank are excluded from the number of shares outstanding.
2. The number of shares held by NH Foods Ltd. includes 500 thousand shares that have been contributed to the retirement benefit trust; however, the right to provide instructions for the voting rights to those shares has
been retained by NH Foods Ltd.
3. The number of shares held by TAIHEIYO CEMENT CORPORATION includes 595 thousand shares that have been contributed to the retirement benefit trust; however, the right to provide instructions for the voting
rights to those shares has been retained by TAIHEIYO CEMENT CORPORATION.

Active Shareholder Return
The Bank’s dividends are to be paid upon having comprehensively taken into consideration factors that include adequacy of retained
earnings, status of profits and the business environment, while also remaining mindful of the need to ensure stable dividends.

Hyakujushi Lease
Co., Ltd.

Consulting Group1
Consulting Group2

Regional Vitalization
Division

MexicoBusiness cooperation
Mexico State Government
Estado de Aguascalientes
JaliscoGuanajuato
Nuevo LeónEl Banco Nacional deMéxico (Banamex)

Indonesia
Business collaboration
PT. Bank Negara Indonesia (Persero) Tbk.

[Marketing Related Sector]
Business Strategy
Division

TaiwanBusiness collaboration
CTBC Holding Co., Ltd.

ThailandBusiness collaboration
KASIKORNBANK Public Company Limited(Bank staff deployment)

Organization (as of July 1, 2022)
The Hyakujushi Bank

Overseas Support Organizations (as of July 1, 2022)

FY2019FY2020

FY2021

Total annual dividends (billions of yen)

2.3

2.0

2.0

Interim

40

40

30

Year-end

40

30

40

Annual80

70

70

Purchase of treasury stock (billions of yen)

ー

ー

1.0※

Shareholder returns (billions of yen)

2.3

2.0

3.0

Consolidated profit (billions of yen)

7.7

2.5

11.7

Dividend payout ratio

30.6%

80.5%

17.6%

Shareholder return ratio

30.6%

80.5%

26.2%

Dividend per share(Yen)
Consulting Plaza Branch(Note)
The amount shown for the purchase of treasury stock in the fiscal year ended March 31, 2022, includes treasury stock purchased pursuant to the “Determination of Matters related to the Purchase of Treasury Stock” publishedon May 13, 2022.

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THE HYAKUJUSHI BANK, LTD.
5-1, Kamei-cho, Takamatsu, Kagawa 760-8574, Japan
https://www.114bank.co.jp