Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Consolidated Financial Results for the Year Ended March 31, 2022
(Based on Japanese GAAP)May 13, 2022
Company name:Yamaguchi Financial Group, Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

8418
URL https://www.ymfg.co.jp
President and CEO

Inquiries:

General Manager of Accounting
Office,Corporate Planning Department

Keisuke Mukunashi
Kentaro Hama

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 24, 2022
June 27, 2022

Scheduled date to commence dividend payments:
Trading accounts:

June 27, 2022
Yes

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

TEL

083-223-5511(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toOrdinary income
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2022
147,016(19.8)(7,635)–(13,005)–
Year ended March 31, 2021
183,255
4.5
36,965
1.0
24,957(1.7)
Profit attributable toOrdinary profit/total
owners ofassetsparent/equity
Yen
%
%
–
(2.0)
(0.1)
99.59
3.8
0.3

Diluted earnings per
share

Earnings per share
Yen(53.29)99.63

Year ended March 31, 2022
Year ended March 31, 2021

Ordinary
profit/ordinary
income
%
(5.2)
20.2

(2) Consolidated financial position
Total assets
As of March 31, 2022
As of March 31, 2021

Net assets

Equity ratio

Millions of yen
12,182,662
11,993,722

Millions of yen
636,344
681,139

Cash flows fromoperating activities
Millions of yen(77,132)
1,119,300

Cash flows frominvesting activities
Millions of yen
461,973(292,739)

Net assets per share
%
5.2
5.6

Yen
2,652.26
2,729.94(3) Consolidated cash flows

Year ended March 31, 2022
Year ended March 31, 2021

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(13,202)2,151,826
8,831
1,780,179

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

13.00
14.00

–
–

13.00
14.00

26.00
28.00

6,509
6,810

26.1
–

1.0
1.0

–

15.00

–

16.00

31.00

1

43.3

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen%
Yen
Six months ending
September 30, 2022
Full year

14,000(13.2)

10,000(17.7)

42.11

25,000–17,000–71.58

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
Yes

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

264,353,616 shares As of March 31, 2021

264,353,616 shares

Number of treasury shares at the end of the period
As of March 31, 2022

26,865,558 shares As of March 31, 2021

17,171,132 shares

244,077,267 shares Year ended March 31, 2021

250,496,166 shares

Average number of shares during the period
Year ended March 31, 20222

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCash and due from banks

1,807,659

2,175,913

Call loans and bills bought
Monetary claims bought

9,188
4,555

31,713
5,442

Trading account assets
Money held in trust

1,980
35,093

3,101
35,0591,785,562
7,894,126

1,354,033
8,143,997

Foreign exchanges
Lease receivables and investments in leases

22,40820,32030,041
19,698Other assets
Tangible fixed assets

285,229
88,789288,261
83,132

Buildings, net
Land20,54659,246

19,69554,304

Leased assets, net
Construction in progress

122
358

107
212

Other tangible fixed assets
Intangible fixed assets

8,515
9,796

8,811
6,991

6,721
2,339

5,689
412

8
726

–
889

Retirement benefit asset
Deferred tax assets

59,606
3,253

32,727
3,513

Customers' liabilities for acceptances and guarantees
Allowance for loan losses

39,494(73,344)

50,382(81,348)

11,993,722

12,182,662

Securities
Loans and bills discounted

Software
Goodwill
Leased assets
Other intangible fixed assets

Total assets3

(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Deposits
Negotiable certificates of deposit

9,607,290
404,284

9,931,230
403,327

Call money and bills soldCash collateral received for securities lent

167,152
326,41478,078314,958

Trading account liabilities
Borrowed money

748
638,352

1,379
626,546

Foreign exchanges
Bonds payable193
20,000171
20,000

Other liabilities
Provision for bonuses

89,6592,851

102,9812,878

Retirement benefit liability
Provision for retirement benefits for directors (and other

2,789

2,652

293

287

43

18

Provision for reimbursement of deposits
Provision for point card certificates

708
70

530
83

Provision for management board benefit trust
Reserves under special laws

434
16

488
17

Deferred tax liabilities
Deferred tax liabilities for land revaluation

1,498
10,284

1,421
8,883

Acceptances and guarantees

39,49450,382

11,312,583

11,546,318

Share capital
Capital surplus

50,00058,65450,00058,648Retained earnings
Treasury shares

528,085(18,649)

511,253(25,045)

Total shareholders' equity

618,091

594,855

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

19,477
1,480

8,171
4,749

Revaluation reserve for landRemeasurements of defined benefit plans

23,192
12,55320,001
2,101

Total accumulated other comprehensive income

56,70235,023

Share acquisition rights
Non-controlling interests

117
6,228

81
6,382

681,139

636,344

11,993,722

12,182,662

officers)
Provision for loss on interest repayment

Total liabilities
Net assets

Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2021
Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans and bills boughtInterest on deposits with banks
Other interest income
Trust fees
Fees and commissions
Gain on trading account transactions
Other ordinary income
Other income
Recoveries of written off receivables
Other
Ordinary expenses
Interest expenses
Interest on deposits
Interest on negotiable certificates of deposit
Interest on call money and bills soldInterest expenses on cash collateral received for securities
lentInterest on borrowings and rediscounts
Interest on bonds
Other interest expenses
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Provision of allowance for loan losses
Other
Ordinary profit (loss)
Extraordinary income
Gain on disposal of non-current assets
Reversal of reserve for financial instruments transaction
liabilities
Compensation for forced relocation
Gain on return of assets from retirement benefits trust
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Loss on revision of retirement benefit plan
Loss on guarantees
Provision of reserve for financial instruments transaction
liabilities
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

5

Fiscal year ended
March 31, 2022

183,255
107,432
69,18837,39516770
61
025,388
1,924
27,094
21,414
921,404
146,289
5,845
2,241
32
501

147,016
92,23967,49622,546
102
2,042
50
0
26,569
1,752
20,108
6,347
9
6,337
154,652
5,464
1,579
14
299

357

381

86
81
2,545
9,576
50,89464,54015,431
8,964
6,466
36,965
2,249
2,237

66
158
2,965
9,561
47,78560,562
31,27822,0479,231(7,635)
9,274
180

10

–

1
–
2,420
1,504
381
–
535

–
9,094
7,142
269
5,631
1,241
–

–

0

36,795
11,655130
11,78525,00952
24,957(5,503)
940
6,431
7,372
(12,876)129(13,005)

Consolidated statements of comprehensive income(Millions of yen)

Profit (loss)
Other comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
25,00936,523(12,876)(18,459)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

9,810
12,137(11,277)
3,269

Remeasurements of defined benefit plans, net of tax

14,575(10,451)

61,533(31,335)

61,458(31,492)

74

157

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

50,000Retained earnings

58,655508,211

Total shareholders'equityTreasury shares(14,320)602,546

Changes during period
Dividends of surplus(6,346)(6,346)

Profit (loss) attributableto owners of parent

24,957

24,957Purchase of treasury
shares
Disposal of treasury
shares(5,000)(5,000)

672

671

(1)

Reversal of revaluation
reserve for land

1,263

1,263

Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period–(1)19,874(4,328)15,54450,00058,654

528,085(18,649)

618,091

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities
Balance at beginning of
period9,688(10,657)

Total

Revaluation
reserve forland

Remeasurements

accumulatedof definedotherbenefit planscomprehensive

Shareacquisitionrights

Noncontrollinginterests

127

6,106

Total net
assetsincome24,455(2,021)

21,464630,244

Changes during period
Dividends of surplus(6,346)

Profit (loss) attributableto owners of parent

24,957Purchase of treasury
shares(5,000)

Disposal of treasury
shares

671

Reversal of revaluation
reserve for land

1,263

Net changes in items
other than shareholders'equity9,788

12,137(1,263)

14,57535,237(9)

12135,349Total changes during
period9,788

12,137(1,263)

14,57535,237(9)

121

50,894

Balance at end of period

19,477

1,480

23,192

12,55356,702

117

6,228

681,139

7

Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

50,000Retained earnings

58,654

528,085

Cumulative effects ofchanges in accounting
policies

Total shareholders'equityTreasury shares(18,649)

618,091(318)

Restated balance

50,00058,654

527,767(318)(18,649)

617,772

Changes during period
Dividends of surplus(6,699)(6,699)Profit (loss) attributableto owners of parent(13,005)(13,005)

Purchase of treasury
shares
Disposal of treasury
shares(6,501)(6,501)

104

98

(6)

Reversal of revaluation
reserve for land

3,191

3,191

Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period–(6)(16,513)(6,396)(22,916)

50,00058,648511,253(25,045)594,855

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-forhedges
sale securities
Balance at beginning of
period19,477

1,480

Total

Revaluation
reserve forland

Remeasurements

accumulatedof definedotherbenefit planscomprehensive

Shareacquisitionrights

Noncontrollinginterests

117

6,228

income23,192

12,55356,702

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets681,139(318)
19,477

1,480

23,192

12,55356,702

117

6,228

680,820

Changes during period
Dividends of surplus(6,699)Profit (loss) attributableto owners of parent(13,005)

Purchase of treasury
shares(6,501)

Disposal of treasury
shares98

Reversal of revaluation
reserve for land

3,191

Net changes in items
other than shareholders'equity(11,305)

3,269(3,191)(10,451)(21,678)

(35)

154

(21,559)

Total changes during
period(11,305)

3,269(3,191)(10,451)(21,678)

(35)

154

(44,476)

Balance at end of period

8,171

4,749

20,001

2,101

35,023

81

6,382

636,3448

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Share of loss (profit) of entities accounted for using equity
methodIncrease (decrease) in allowance for loan losses
Increase (decrease) in provision for bonuses
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in provision for share awards for directors(and other officers)
Increase (decrease) in provision for loss on interest repayment
Increase (decrease) in provision for reimbursement of deposits
Increase (decrease) in provision for point card certificates
Increase (decrease) in reserves under special laws
Interest income
Interest expenses
Loss (gain) related to securities
Loss (gain) on money held in trust
Foreign exchange losses (gains)
Loss (gain) on disposal of non-current assets
Net decrease (increase) in trading account assets
Net increase (decrease) in trading account liabilities
Net decrease (increase) in loans and bills discounted
Net increase (decrease) in deposits
Net increase (decrease) in negotiable certificates of deposit
Net increase (decrease) in borrowed money (excluding
subordinated borrowings)
Net decrease (increase) in due from banks (excluding duefrom Bank of Japan)
Net decrease (increase) in call loans
Net increase (decrease) in call money
Net increase (decrease) in cash collateral received for
securities lent
Net decrease (increase) in foreign exchanges - assets
Net increase (decrease) in foreign exchanges - liabilities
Net decrease (increase) in lease receivables and investments
in leases
Losses (gains) on cancellation of employee retirement benefit
trust
Loss (gain) on revision of retirement benefit planInterest received
Interest paid
Other, net
Subtotal
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities

9

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
36,795
5,787
381
377

(5,503)
5,400
5,631
400

6

5

7,541
86
(24,565)(1,140)8,004
26
26,878
(137)

(0)

(6)

45

54

33
(320)
0
(10)
(107,432)
5,845
8,439
3,680
(9,934)
(733)
(438)
6
(241,500)
600,731(115,091)

(24)
(177)
12
0
(92,239)
5,464
34,738(244)(18,785)89(1,120)630(249,871)
323,939(956)

610,353(11,806)

(486)

3,391

(7,169)75,160(23,411)(89,074)

164,948(11,456)(1,715)(3)(7,632)
(21)

(557)

621

–

(9,094)–82,400(6,667)
48,672
1,133,526(14,227)
2
1,119,300

1,241
81,233(5,614)(40,471)(69,883)(9,095)
1,846(77,132)(Millions of yen)

Cash flows from investing activities
Purchase of securities
Proceeds from sale of securities
Proceeds from redemption of securities
Increase in money held in trust
Decrease in money held in trust
Purchase of tangible fixed assets
Proceeds from sale of tangible fixed assets
Purchase of intangible assets
Purchase of shares of associates accounted for using equity
methodNet cash provided by (used in) investing activities
Cash flows from financing activities
Issuance of subordinated bonds
Dividends paid
Dividends paid to non-controlling interests
Purchase of treasury shares
Proceeds from disposal of treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

10

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022

(2,623,555)
2,286,069
60,668(49,940)
37,130(1,665)753(2,202)(2,107,076)
2,534,143
35,223(8,509)8,970(1,515)2,740(1,991)–(9)(292,739)

461,973

19,884(6,346)(2)(5,000)296
8,831
3
835,395
944,783
1,780,179–(6,699)(2)(6,501)
0(13,202)7
371,646
1,780,179
2,151,826