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

Financial Summaryfor the First Half of Fiscal Year 2020 Ended September 30, 2020
November 11, 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 provision of generalreserve for loan losses
General and administrativeexpenses
Ordinary business profits
Ordinary profits
Net income
2.

(Millions of Yen)1H FY2020 (6 months)
11,590-427
12,018-1-0

12,104

11,117

1,041
1,232
1,080

473
468
366

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.

1H FY2019 (6 months)
13,144-554
13,699FY2019(As of March 31, 2020)
327,36137
54,764382,163
17,71222,000290,000
29,465359,177
22,985(Millions of Yen)
1H FY2020(As of September 30, 2020)
311,036
81
54,479365,597
34,11240,000240,000
28,132342,245
23,352

1H FY2019 (6 months)
92.1%

1H FY2020 (6 months)
95.9%

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

1

Risk-weighted assets
Core capital
Capital adequacy ratio(Millions of Yen)
1H FY2020(As of September 30, 2020)
79,601
10,18912.80%FY2019(As of March 31, 2020)
79,6339,363
11.76%FY2019(As of March 31, 2020)
Number of ATM units installed

13,367

Total number of banking
accounts
Number of credit cardcustomers

48,86056,85047,67988,305

1H FY2019 (6 months)
Total number of ATM usage(1,000s)
Average daily ATM usage (no.
of times per day per unit)

1H FY2020(As of September 30, 2020)
13,455

1H FY2020 (6 months)

119,774

103,566

48.4

42.1

Note:
1. Figures of total number of ATM usage are rounded off a number less than 1,000.
2. Figures of average daily ATM usage are rounded off to one decimal places.

FY2019(As of March 31, 2020)
Number of partner financial
institutions (banks, companies,depositories)
Number of partner companies
for immediate accountsettlement service

1H FY2020(As of September 30, 2020)

124

126

-1

Note:
1. The JA Bank and JF Marine Bank are considered each as an institution depending on business categories.
2. auPAY and WebMoney prepaid card (including Lite) are considered each as an institution depending onbusiness categories.

2

II.

Interim Financial Statements
1. Interim Balance Sheets (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY20191H FY2020(As of March 31, 2020)(As of September 30, 2020)[Assets]
Cash and due from banks
Cash
Due from banks
LoansOverdraft
Suspense payments in ATMs
Other assetsPrepaid 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
Other intangible assets
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

3327,361
319,492
7,8683737
12,736
10,148422
2
9,722

311,036
302,866
8,169
81
81
13,831
10,886305
710,574

5,000

5,000

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

16,437116
16,199121
13,093
12,328764
1
232-1
365,597

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

34,112
22,706
11,3987
40,000240,000
15,177
12,769
163
1,472
9,635
1,497
185
342,245(Millions of Yen)FY2019(As of March 31, 2020)

1H FY2020(As of September 30, 2020)

11,60011,60011,600-214-214

11,60011,60011,600152
152-214152

22,98522,985382,163

23,352
23,352
365,597[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

2.

Interim Statement of Income (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)
1H FY2019
1H FY2020(From April 1, 2019 to(From April 1, 2020 to
September 30, 2019)
September 30, 2020)
Ordinary incomeInterest income
Interest on loans
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 business income
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 business expenses
General and administrative expenses
Other ordinary expenses
Other ordinary expenses
Ordinary profits
Extraordinary profits
Other extraordinary profits
Extraordinary losses
Tangible fixed asset disposal
expenses
Other extraordinary losses

5

17,577-12
0-4-102
17,3284
17,28439
260
1258
16,345
542
0
2
340
199
3,629
1

15,673
45-0-1
1
15,65912
15,508138
100
915,205
432
13
4
243
172
3,640
1

1,602

1,439

1,945
80
12,104
68
68
1,232
0
0
5

1,986
214
11,117
14
14
468
100

9

4

1

1H FY2019(From April 1, 2019 to
September 30, 2019)Net income before income taxes
Income taxes
Income taxes, local inhabitant taxes
and the enterprise taxes
Deferred income taxes
Net income6(Millions of Yen)
1H FY2020(From April 1, 2020 toSeptember 30, 2020)

1,227
147

458
91

147

82

1,080

8366

3.

Interim Statement of Changes in Equity

1H FY2019 (From April 1, 2019 to September 30, 2019)(Financial figures are truncated to the unit stated)(Millions of Yen)
Valuation and translation
adjustments

Shareholders’ equity
Capitalsurplus
Commonstock

Balance ofbeginning of 11,600
periodChange during
interim period
Net income
Net change
during interim
period for items
other thanshareholders’equityTotal change ininterim period
Balance,
September 30, 11,600
2019

Retainedearnings
Other retained
earnings
Defered retained
earnings

Total
shareholders’equity11,600-2,04821,151--

21,151

-

1,080

1,080

-

-

1,080

-

-----

-

1,080

1,080

-

-

1,080

11,600-967

22,232--

22,232

Capitalreserves

Unrealized gain Total valuation Total equity(loss) on other and translation
adjustments
available-forsale securities

1H FY2020 (From April 1, 2020 to September 30, 2020)(Financial figures are truncated to the unit stated)(Millions of Yen)
Valuation and translation
adjustments

Shareholders’ equity
Retainedearnings
Other retained
earnings
Defered retained
earnings

Total
shareholders’equity11,600-214

22,985--22,985

-

366

366

-

-

366

-

-----

-

366

366

-

-

366

11,600152

23,352--

23,352

Capitalsurplus
Commonstock

Balance ofbeginning of 11,600
periodChange during
interim period
Net income
Net change
during interimperiod for items
other thanshareholders’equityTotal change ininterim periodBalance,
September 30, 11,600
2020

Capitalreserves

7

Unrealized gain Total valuation Total equity(loss) on other and translation
adjustments
available-forsale securities

4.

Interim Cash Flow Statement (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)
1H FY2019
1H FY2020(From April 1, 2019 to(From April 1, 2020 to
September 30, 2019)
September 30, 2020)
I Cash flows from operating activities
Income (loss) before income taxes

1,227458

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

3,154

3,445

-1-0

188-457

-663

-12-4

Interest expenses

542

432

Net change in stored items (-)
Net change in unsettled money forATMs (-)
Net change in accounts payable (-)

16

18-26,744

-354

397

161

Net change in deposits (-)-3,005

16,360120-542-427

Interest received
Interest paid
Losses (gains) on disposal of fixed
assetsNet change in borrowed money (-)-935,000-32,000

Repayment of lease obligations-2,862-2,202Other328641

Sub total

7,701-14,116

Payment of corporate taxes, etc.

-350

-81

Refund of sales tax, etc.

504-630

7,225-14,828--10-10-5-16-1,009-1,479-1,014-1,496

Net cash generated by operating
activities
II Cash flow from investing activities
Purchase of securities
Proceeds from sales andredemption of securities
Purchase of tangible fixed assets
Purchase of intangible fixed assets
Net cash provided by (used in)investing activities

81H FY2019(From April 1, 2019 toSeptember 30, 2019)(Millions of Yen)
1H FY2020(From April 1, 2020 toSeptember 30, 2020)

III Cash flow from financing activities
Cash flow from financing activities
IV Adjustments on cash and cash
equivalents
V Net change in cash and cash
equivalents
VI Cash and cash equivalents at
beginning of interim period
VII Cash and cash equivalents at endof interim period

9----

6,211

-16,324

319,744327,361

325,955

311,036

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)
1H FY2020(As of September 30, 2020)
79,601
10,18912.80%FY2019(As of March 31, 2020)
79,6339,363
11.76%

Claims Classified under the Financial Revitalization Law (Non-consolidated)(Millions of Yen)
1H FY2020(As of September 30, 2020)

FY2019(As of March 31, 2020)
Claims against bankrupt andquasi-bankrupt obligors

0-

Doubtful claims

00

Substandard claims

0-

13,01814,198

Normal claims
3.

Derivative Transaction
None.

4.

ATM Transactions
FY2019(As of March 31, 2020)
Number of ATM units installed

1H FY2020(As of September 30, 2020)
13,455

13,367

1H FY2019 (6 months)
Total number of ATM usage(1,000s)
Average daily ATM usage (no.
of times per day per unit)

1H FY2020 (6 months)

119,774

103,566

48.4

42.1

Note:
1. Figures of total number of ATM usage are rounded off a number less than 1,000.
2. Figures of average daily ATM usage are rounded off to one decimal places.

FY2019(As of March 31, 2020)
Number of partner financial
institutions (banks, companies,depositories)
Number of partner companies
for immediate accountsettlement service

1H FY2020(As of September 30, 2020)

124

126

-

1Note:
1. The JA Bank and JF Marine Bank are considered each as an institution depending on business categories.
2. auPAY and WebMoney prepaid card (including Lite) are considered each as an institution depending onbusiness categories.

10

5.

Other
1H FY2019 (6 months)
Interest margin for total fund6.

-6.30%-6.52%

General and Administrative Expenses
1H FY2019 (6 months)
Personnel expenses
Non-personnel expenses
Depreciation
Taxes
General and administrativeexpenses

7.

1H FY2020 (6 months)(Millions of Yen)
1H FY2020 (6 months)

862

890

11,125

10,105

3,154

3,445

116

121

12,104

11,117

Number of Directors, Auditors, and Employees
FY2019(As of March 31, 2020)

1H FY2020(As of September 30, 2020)
10Directors and auditors

9Directors

5

6Auditors

44Employees

145

163

Total

154

173

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

11