September 19, 2017
Company name: Mebuki Financial Group, Inc.
Representative: Kazuyoshi Terakado, President（Code number：7167 First Section,Tokyo Stock Exchange)

Notice Regarding Transfer of Sub-subsidiarythrough Dividend in Kind of Subsidiary
Mebuki Financial Group, Inc. (Mebuki) announces it has resolved at the meeting of the board ofdirectors held today that Mebuki shall acquire all shares of Mebuki Securities Co., Ltd. (Mebuki Securities)
from The Joyo Bank, Ltd. (Joyo Bank, a wholly-owned subsidiary of Mebuki) through a dividend in kind. Asa result of this dividend in kind, Mebuki Securities will become a direct subsidiary of Mebuki and changes in
sub-subsidiaries will occur as follows.
Description
1. Reason for the dividend in kind (transfer from sub-subsidiary)
Mebuki is carrying out the “First Medium-Term Group Business Plan (Plan Period: October 1, 2016 toMarch 31, 2019)” and “Expansion of comprehensive financial services” is set up as one of the basic strategiesof the integration in the Plan. Based on the strategy, Mebuki has been seeking to provide one-stop services withgreater added value in response to diversifying customer needs.
Through the dividend in kind, Mebuki will acquire all the shares of Mebuki Securities, the wholly-owned
subsidiary of Joyo Bank, which will make Mebuki Securities a directly- and wholly-owned subsidiary ofMebuki. Mebuki Securities will further enhance the collaboration with Joyo Bank and The Ashikaga Bank, Ltd.,and expanded its area for securities functions through the reorganization of subsidiaries. Through these efforts,Mebuki will provide higher quality and more comprehensive financial services to the customers of the groupcompanies and so forth in order to maximize the synergy effects.

2. Surplus appropriation of Joyo Bank
Other retained earnings of Joyo Bank will be appropriated for the dividend in kind.
(1) Type and total book value of the dividend property
Dividend property allocated to Mebuki is a non-monetary asset (common shares as follows), the latest
book value of which is 3,000,000,000 yen.
Trade Name
Mebuki Securities Co., Ltd.

Number of Shares
60,000 shares

Shareholding Ratio
100％Book Value
3,000,000,000 yen(2) Allocation of the dividend property to the shareholder
All the dividend property will be allocated to Mebuki, who owns all the issued shares of Joyo Bank as ofthe effective date of the dividend in kind.
(3) Effective date of the dividend in kind
October 2, 2017
3. Overview of the company that will pay the dividend in kind
Trade Name

The Joyo Bank, Ltd.

Location

5-5, Minami-machi 2-chome, Mito, Ibaraki

Representative

Kazuyoshi Terakado, President

Business

Banking business

Capital Stock

85,113 million yen

Establishment

July 30, 1935

Net Assets

593,283 million yen (as of March 31, 2017)Total Assets

9,697,024 million yen (as of March 31, 2017)

Shareholder andShareholding Ratio

Mebuki Financial Group, Inc. 100％

4. Overview of the sub-subsidiary to be transferred
Trade Name

Mebuki Securities Co., Ltd.

Location

4-12, Minami-machi 3-chome, Mito, Ibaraki

Representative

Atsuyuki Kurosawa, President

Business

Securities business

Capital Stock

3,000 million yen

Establishment

November 30, 2007

Net Assets

4,222 million yen (as of March 31, 2017)

Total Assets

15,760 million yen (as of March 31, 2017)

Shareholder andShareholding Ratio

The Joyo Bank, Ltd. 100％

5. Schedule
September 19, 2017

Resolution of the board of directors of Mebuki

October 2, 2017

Effective date of the dividend in kind

6. Future outlook
Being an internal transaction, this dividend in kind will not affect the consolidated shareholders’ equity andthe consolidated financial results.
(Reference) Consolidated Earnings Forecast for Fiscal Year 2017 (Announced on August 7, 2017)
Net Income Attributable
Net Income per Share
Ordinary Profit
to Owners of the Parent
Fiscal Year58,500 million yen
40,000 million yen
33.96 yenEnding March 31, 2018

【Current Group Structure】
Mebuki Financial Group, Inc.

100％100％

The Joyo Bank, Ltd.

100％

The Ashikaga Bank, Ltd.

100％

Mebuki Lease Co., Ltd.

100％

8 subsidiaries(Incl. Mebuki Securities Co., Ltd.)

3 subsidiaries【Group Structure after the Dividend in Kind (Scheduled on October 2, 2017)】

Mebuki Financial Group, Inc.

100％
The Joyo Bank, Ltd.

100％
The Ashikaga Bank, Ltd.

100％

100％

7 subsidiaries

3 subsidiaries

100％
Mebuki Lease Co., Ltd.

100％
Mebuki Securities Co., Ltd.

EndInquiries:Corporate Planning Department Tetsuya Akino Tel:029-300-2605