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

Financial Summary
for the Fiscal Year 2018 Ended March 31, 2019
May 16, 2019
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)1

Total revenue
Net interest income
Net fees and commissions
Net trading income
Net other business income
Net provision of generalreserve for credit losses
General and administrative
expenses
Ordinary business profits
Ordinary profits or Ordinarylosses
Net income or Net losses

Post-opening(7 months from September 1,2018 to March 31, 2019)13,958-566
14,525-0(Millions of Yen)FY2018(From April 1, 2018to March 31, 2019)
19,638-661
20,300-0

3

3

14,155-201

19,383
250

-264
-234

188
5

1 Lawson Bank commenced its operation on September 10, 2018, but figures from results of operation for sevenmonths from September 1, 2018, to March 31, 2019, are reported.

2.

Balance Sheets (Non-consolidated)(Millions of Yen)FY2018 (As of March 31, 2019)
Cash and due from banks
Loans
Other assets
Total assets
Deposits
Borrowed money
Other liabilities
Total liabilities
Total equity

319,744065,919385,664
14,840280,000
69,671
364,512
21,1511

3.

Financial Ratios (Non-consolidated)

Expense-to-revenue ratio

Post-opening1(7 months from September 1,2018 to March 31, 2019)
101.4%FY2018(From April 1, 2018
to March 31, 2019)98.7%

1 Lawson Bank commenced its operation on September 10, 2018, but figures from results of operation for sevenmonths from September 1, 2018, to March 31, 2019, are reported.

(Millions of Yen)FY2018 (As of March 31, 2019)
Risk-weighted assets

72,684

Core capital

7,362

Capital adequacy ratio

10.13%FY2018(As of March 31, 2019)13,476

Number of ATM units installed
Total number of banking accounts

28,177

From June 1, 2018
to March 31, 2019
197,276

Total number of ATM usage (1,000s)
Average daily ATM usage (no. of times per day per unit)

48.9

Note:
1. 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 ATM 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

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

2

II.

Financial Statements
1. Balance Sheets (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY2018 (As of March 31, 2019)[Assets]
Cash and due from banks
CashDue from banks
LoansOverdraft
Suspense payments in ATMs
Other assets
Prepaid expenses
Accrued income
Other assets
Guarantee deposits for CCP
Tangible fixed assets
Buildings
Leased assets
Other tangible assets
Intangible fixed assets
Software
Software in progress
Reserve for credit losses
Total assets[Liabilities]
Deposits
Ordinary deposits
Time deposits
Other deposits
Borrowed money
Suspense receipts of ATM
Other liabilities
Income taxes payable
Accrued expenses
Lease obligations
Other liabilities
Accrued employees’ bonuses
Total liabilities[Equity]Common stock
Capital surplus
Capital reserve
Retained earnings

319,744
281,405
38,33800
25,519
9,731
900
250
8,579
5,000
16,879170
16,548160
13,793
13,626166-3385,664
14,84014,600238
2280,000
55,818
13,681328
1,752
11,186413
172364,512
11,60011,60011,600-2,0483Legal reserve
Other retained earnings
Unappropriated retained earnings
Total shareholders’ equity
Total equity
Total liabilities and equity-2,048-2,04821,151
21,151
385,6644

2.

Statement of Income (Non-consolidated)

Ordinary income
Interest income
Interest on loans
Interest and dividends on securities
Interest on call loans
Interest income on due from banks
Other interest income
Fees and commissions income
Fees and commissions on exchanges
ATM commissions received
Other fees and commissions income
Other business income
Gains on sales of bonds
Other ordinary income
Other ordinary income
Ordinary Expenses
Interest expenses
Interest on deposits
Interest on call money
Interest on loans
Other interest expenses
Fees and commissions expenses
Fees and commissions on exchanges
ATM installation commissions expenses
ATM commissions expenses
Other fees and commissions expenses
Other business expenses
Losses on sales of bonds
General and administrative expenses
Other ordinary expensesProvision of reserve for Credit Losses
Other ordinary expenses
Ordinary profit
Extraordinary profits
Other extraordinary profits
Extraordinary losses
Tangible fixed asset disposal expenses
Net income before income taxes
Income taxes

5(Financial figures are truncated to the unit stated)(Millions of Yen)FY2018(From April 1, 2018 to March 31, 2019)26,173-20
0-0-1-20
1
26,175
1
25,990183
00
18
18
25,985
641
00330
310
5,875
1
2,635
3,196
41
0019,383
84
380
188
10101616182
176

Current income taxes
Deferred income taxes
Net income

1724563.

Statement of Changes in Equity (Non-consolidated) for the FY2018 ended March 31, 2019
(Financial figures are truncated to the unit stated)(Millions of Yen)

Common stock

Balance of beginning ofperiod
Change during the year
Increase in capital andcapital reserves
Net income
Net change during theyear for items otherthan shareholders’equityTotal change during theyear
Balance, March 31,
2019

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

Totalshareholders’equityTotal equity

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

11,100-

11,100-5

22,2005

22,2005-----

11,100

11,1005

22,20522,205

11,60011,600-2,04821,151

21,151

7

4.

Cash Flow Statement (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY2018 (As of March 31, 2019)
I Cash flows from operating activities
Income (loss) before income taxes

182

Depreciation

4,271

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

72

Interest income

20Interest expenses

641

Gains (losses) from sales of fixed assets (-)

16

Net change in storage (-)

3-105

Net change in ATM unsettled money (-)

30,298Net change in deposits (-)

15,181

Interest received-20

Interest paid

-641

Net change in borrowed money (-)

283,200

Repayment of lease obligations-4,031Other-5,510

Sub total

323,240

Payment of corporate taxes, etc.

-5

Refund of sales tax, etc.

538

Net cash generated by operating activities

323,813

II Cash flow from investing activities
Purchase of securities-5,504

Sale and depreciation of securities

5,504

Purchase of tangible fixed assets-109

Purchase of intangible fixed assets-6,763

Net cash provided by (used in) investing activities-6,872

III Cash flow from financing activities
Cash flow from financing activities-IV Foreign currency translation adjustments on
cash and cash equivalents
V Net change in cash and cash equivalents
VI Cash and cash equivalents at beginning of theyear
VII Net change in cash and cash equivalents
relating to absorption-type company split
VIII Cash and cash equivalents at the end of theyear

8316,900
2,120723
319,744

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

Claims Classified under the Financial Revitalization Law (Non-consolidated)(Millions of Yen)FY2018（As of March 31, 2019）
Claims against bankrupt and quasi-bankrupt obligors-

Doubtful claims-

Substandard claims-

Normal claims
2.

Derivative Transaction
None.

3.

Other25,520

Post-opening1(7 months from September 1,2018 to March 31, 2019)
Interest margin for total fund-4.88%FY2018(From April 1, 2018
to March 31, 2019)-11.16%

1 Lawson Bank commenced its operation on September 10, 2018, but figures from results of operation for sevenmonths from September 1, 2018, to March 31, 2019, are reported.

4.

General and Administrative Expenses(Millions of Yen)FY2018 (From April 1, 2018 to March 31, 2019)
Personnel expenses

1,448

Non-personnel expenses

17,475

Depreciation

4,271

Taxes

459

General and administrativeexpenses
5.

19,383

Number of Directors, Auditors, and Employees
FY2018 (From April 1, 2018 to March 31, 2019)
Directors and auditors

11Directors

7

Auditors

4

Employees

139

Total

150

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.

9