This is the preliminary translation of the Japanese version Lawson Bank financial results provided by Lawson, Inc.

Financial Summaryfor the Fiscal Year 2019 Ended March 31, 2020
May 15, 2020
Lawson Bank, Inc. (https://www.lawsonbank.jp/)

I.

Financial Results Highlights(Financial figures are truncated to the unit stated)

1.

Results of Operation (Non-consolidated)

Total revenue
Net interest income
Net fees and commissions
Net trading income
Net other business income
Net provision of generalreserve for loan losses
General and administrativeexpenses
Ordinary business profits
Ordinary profits
Net income
2.

3-1

19,383250
188
523,735
1,982
1,820
1,834

Balance Sheets (Non-consolidated)

Cash and due from banks
Loans
Other assets
Total assets
Deposits
Call money
Borrowed money
Other liabilities
Total liabilities
Total equity
3.

FY2018 (12 months)
19,638-661
20,300-0(Millions of Yen)FY2019 (12 months)
25,717-1,066
26,783-

FY2018(As of March 31, 2019)319,744065,919385,664
14,840280,000
69,671
364,512
21,151(Millions of Yen)FY2019(As of March 31, 2020)
327,36137
54,764382,163
17,71222,000290,000
29,465359,177
22,985FY2018 (12 months)
98.7%

FY2019 (12 months)
92.3%

Financial Ratios (Non-consolidated)
Expense-to-revenue ratio

1Risk-weighted assets
Core capital
Capital adequacy ratio

FY2018(As of March 31, 2019)
72,6847,362
10.13%FY2018(As of March 31, 2019)
Number of ATM units installed
Total number of banking
accounts
Number of credit cardcustomers

13,476FY2019(As of March 31, 2020)
13,36728,177

48,8601,548

47,679FY2018 (12 months)
Total number of ATM usage(1,000s)
Average daily ATM usage (no.
of times per day per unit)(Millions of Yen)FY2019(As of March 31, 2020)
79,6339,363
11.76%FY2019 (12 months)

197,276

233,203

48.9

47.2

Note:
1. In FY2018, figures are from operations after June 1, 2018 when the absorption-type split of Lawson ATMNetworks, Inc. was implemented.
2. Figures of total number of ATM usage are rounded off a number less than 1,000.
3. Figures of average daily ATM usage are rounded off to one decimal places.

FY2018(As of March 31, 2019)
Number of affiliated financial
institutions (banks, companies,depositories)

113

FY2019(As of March 31, 2020)
124

Note: The JA Bank and JF Marine Bank are considered each as an institution depending on business categories.

2

II.

Financial Statements
1. Blance Sheets (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY2018FY2019(As of March 31, 2019)(As of March 31, 2020)[Assets]
Cash and due from banks
Cash
Due from banks
Loans
Overdraft
Suspense payments in ATMs
Other assets
Prepaid expenses
Accrued income
Other assets
Guarantee deposits forCCP
Tangible fixed assets
BuildingsLeased assets
Other tangible assets
Intangible fixed assets
Software
Software in progress
Differed tax assets
Reserve for loan losses
Total assets[Liabilities]
Deposits
Ordinary deposits
Time deposits
Other deposits
Call money
Borrowed money
Suspense receipts of ATM
Other liabilities
Income taxes payable
Accrued expenses
Lease obligations
Other liabilities
Accrued employees’ bonuses
Total liabilities

3319,744
281,405
38,3380025,519
9,731
900
250
8,579
5,000

327,361
319,492
7,868
37
37
12,736
10,148
422
2
9,722
5,000

16,879170
16,548160
13,793
13,626166-3385,664

18,159135
17,903
119
13,481
11,9091,571
241-2
382,163

14,84014,600238
2280,000
55,818
13,681328
1,752
11,186413
172364,512

17,712
13,9853,724
222,000290,000
14,437
14,85179
1,803
11,402
1,566
176
359,177

FY2018(As of March 31, 2019)[Equity]Common stock
Capital surplus
Capital reserve
Retained earnings
Legal reserve
Other retained earnings
Unappropriated retainedearnings
Total shareholders’ equity
Total equity
Total liabilities and equity

4(Millions of Yen)FY2019(As of March 31, 2020)

11,60011,60011,600-2,048-2,048-2,048

11,60011,60011,600-214-214-214

21,151
21,151
385,664

22,98522,985382,1632.

Statement of Income (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY2018FY2019(From April 1, 2018 to(From April 1, 2019 toMarch 31, 2019)
March 31, 2020)
Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans
Interest income on due from banks
Other interest received
Fees and commissions income
Exchange fees received
ATM commissions received
Other fees and commissions
incomeOther business income
Gains on sales of bonds
Other ordinary income
Reversal of reserve for loan losses
Other ordinary income
Ordinary Expenses
Interest expenses
Interest on deposits
Interest on call money
Interest on borrowed money
Other interest paid
Fees and commissions expenses
Exchange fees paid
ATM installation commissions
expensesATM commissions expenses
Other fees and commissions
expenses
Other business expenses
Losses on sales of bonds
General and administrative expenses
Other ordinary expenses
Provision of reserve for loan losses
Losses on write-off loans
Other ordinary expenses
Ordinary profit

526,173-200-0-1-20
1
26,175125,990183

34,299-24
2-6-24
4
34,04614
33,930
101

0
0
18
18
25,985
641
00
330
310
5,875
1
2,635

277
1275
32,479
1,042
3
7634
396
7,262
2
3,139

3,196
41

3,890
231

0
0
19,38384
380
188

23,735
438
0
438
1,820

Extraordinary profits
Extraordinary losses
Tangible fixed asset disposal
expenses
Other extraordinary losses
Net income before income taxes
Income taxes
Income taxes
Deferred income taxes
Net income

FY2018(From April 1, 2018 toMarch 31, 2019)
101616
182
176
172
456

(Millions of Yen)FY2019(From April 1, 2019 toMarch 31, 2020)
2101
93
8
1,721-112
128-241
1,834

3.

Statement of Changes in Equity (Non-consolidated)

FY2018 (From April 1, 2018 to March 31, 2019)(Financial figures are truncated to the unit stated)(Millions of Yen)

Common stock

Balance of beginning ofperiod
Change during period
Increase in capital andcapital reserves
Net income
Net change during period
for items other thanshareholders’ equityTotal change in period
Balance, March 31, 2019

Shareholders’ equity
Capital surplus Retained earnings
Other retained
earnings
Capital reserves
Defered retained
earnings

Totalshareholders’equity

Total equity

500500-2,054-1,054-1,054

11,100-

11,100-5

22,2005

22,200
5

11,10011,600

11,10011,6005-2,048

22,205
21,151

22,205
21,151FY2019 (From April 1, 2019 to March 31, 2020)(Financial figures are truncated to the unit stated)(Millions of Yen)

Common stock

Balance of beginning ofperiod
Change during period
Net income
Net change during period
for items other thanshareholders’ equity
Total change in period
Balance, March 31, 2020

Shareholders’ equity
Capital surplus Retained earnings
Other retainedearnings
Capital reserves
Defered retainedearnings

Total
shareholders’equity

Total equity

11,60011,600-2,04821,151

21,151

--

1,834

1,834

1,834

11,60011,600

1,834
-214

1,834
22,985

1,834
22,9857

4.

Cash Flow Statement (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY2018FY2019(From April 1, 2018 to (From April 1, 2019 toMarch 31, 2019)
March 31, 2020)
I Cash flows from operating activities
Income before income taxes

182

1,721

4,271

6,450

3-1

72

420

24

Interest expenses

641

1,042

Losses (gains) on sales of fixedassets (-)
Net change in stored items (-)

1693

-105

16

30,298-28,597

15,181

2,287

Interest received-20-24

Interest paid

Depreciation
Net change in provision of reserve
for loan losses (-)
Net change in accrued employees’
bonuses (-)
Interest income

Net change in unsettled money forATMs (-)
Net change in deposits (-)-641-1,042

Net change in borrowed money (-)

283,200

32,000

Repayment of lease obligations-4,031-5,687

Other-5,850

1,005

Sub total

323,2399,287-5-538538

504

323,772

9,252

Purchase of securities-5,504-

Sales and redemption of securities

5,504

-

Purchase of tangible fixed assets

-109

-9

Purchase of intangible fixed assets-6,763-1,625

Net cash provided by (used in)investing activities
III Cash flow from financing activities-6,872-1,635

Cash flow from financing activities----

Payment of corporate taxes, etc.
Refund of sales tax, etc.
Net cash generated by operating
activities
II Cash flow from investing activities

IV Adjustments on cash and cash
equivalents

8FY2018(From April 1, 2018 toMarch 31, 2019)
V Net change in cash and cash
equivalents
VI Cash and cash equivalents at
beginning of period
VII Net change in cash and cash
equivalents relating to absorptiontype company split
VIII Cash and cash equivalents at
end of period

9(Millions of Yen)FY2019(From April 1, 2019 toMarch 31, 2020)

316,900

7,617

2,120

319,744723-319,744

327,361

III. Reference Information(Financial figures are truncated to the unit stated)
1.

Capital Adequacy Raito Information

Risk-weighted assets
Core capital
Capital adequacy ratio
2.

(Millions of Yen)FY2019(As of March 31, 2020)
79,6339,363
11.76%FY2018(As of March 31, 2019)
72,6847,362
10.13%

Claims Classified under the Financial Revitalization Law (Non-consolidated)(Millions of Yen)FY2019(As of March 31, 2020)

FY2018(As of March 31, 2019)
Claims against bankrupt andquasi-bankrupt obligors-0

Doubtful claims-0

Substandard claims-025,520

13,018Normal claims
3.

Derivative Transaction
None.

4.

ATM Transactions
FY2018(As of March 31, 2019)
Number of ATM units installed

13,476FY2018 (12 months)
Total number of ATM usage(1,000s)
Average daily ATM usage (no.
of times per day per unit)

FY2019(As of March 31, 2020)
13,367FY2019 (12 months)

197,276

233,203

48.9

47.2

Note:
1. In FY2018, figures are from operations after June 1, 2018 when the absorption-type split of Lawson ATM
Networks, Inc. was implemented.
2. Figures of total number of ATM usage are rounded off a number less than 1,000.
3. Figures of average daily ATM usage are rounded off to one decimal places.

FY2018(As of March 31, 2019)
Number of affiliated financial
institutions (banks, companies,depositories)

113

FY2019(As of March 31, 2020)
124

Note: The JA Bank and JF Marine Bank are considered each as an institution depending on business categories.

10

5.

Other
FY2018 (12 months)
Interest margin for total fund

6.

FY2019 (12 months)-11.16%

General and Administrative Expenses
FY2018 (12 months)(Millions of Yen)FY2019 (12 months)
1,611

Personnel expenses

1,448

Non-personnel expenses

17,47521,899

4,271

6,450

459

225

19,38323,735

Depreciation
Taxes
General and administrative
expenses
7.

-6.54%

Number of Directors, Auditors, and Employees
FY2018(As of March 31, 2019)
Directors and auditors

11FY2019(As of March 31, 2020)
9Directors

7

5

Auditors

44Employees

139

145

Total

150

154

Notes:
1. The number of directors and auditors includes external directors and auditors.
2. The number of employees includes executive officers and seconded employees from other companies, but not
temporary employees.

11