The Gunma Bank, Ltd. and Consolidated Subsidiaries

Consolidated Balance Sheets
Thousands of
U.S. dollars (Note 5)

Millions of yen

2015

2016

AssetsCash and due from banks (Note 18) 
Call loans and bills bought Monetary claims bought Trading account securities 
Money held in trust (Note 10) 
Securities (Note 9 and 15) 
Loans and bills discounted ( Note 6) 
Foreign exchanges 
Lease receivables and investment assets 
Other assets Property, plant and equipment ( Note 14) 
Intangible assets 
Net defined benefit asset 
Deferred tax assets (Note 21) Customers' liabilities for acceptances and guarantees Allowance for loan losses 
Total assets ¥164,918
114,604
13,491
1,074
5,000
2,320,706
4,806,908
4,539
41,49829,00667,545
9,007
3
1,672
15,561(44,591)¥7,550,949¥335,643—
11,5641,039
4,967
2,133,238
5,010,417
3,196
43,89832,852
67,732
8,623
—
1,416
15,870(38,951)¥7,631,510$2,978,735—
102,6319,223
44,087
18,931,829
44,465,902
28,371
389,586
291,559
601,101
76,531—
12,568140,847(345,685)$67,727,285

Liabilities
Deposits (Note 15) 
Call money and bills sold Payable under securities lending transactions (Note 15) 
Borrowed money Foreign exchanges 
Bonds with subscription rights to shares 
Other liabilities Provision for directors’ bonuses 
Net defined benefit liability Provision for directors’ retirement benefits Provision for reimbursement of deposits Provision for point card certificates Provision for contingent loss Deferred tax liabilities Deferred tax liabilities by land revaluation (Note 16) 
Acceptances and guarantees Total liabilities ¥6,255,357
170,265
262,906
187,647
241
24,03447,893
67
1,297
640
1,057
152
1,133
50,606
8,551
15,561
7,027,413¥6,421,045
29,296
270,574
257,764
292
22,53645,00262
17,890
571
1,070
151
1,008
32,564
8,081
15,8707,123,782$56,984,783
260,000
2,401,267
2,287,578
2,594
200,000
399,382550
158,770
5,076
9,496
1,344
8,953
288,998
71,721
140,848
63,221,360

Net assets
Capital stock Capital surplus Retained earnings Treasury shares 
Total shareholders' equity 
Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land (Note 16) 
Foreign currency translation adjustment 
Remeasurements of defined benefit plans 
Total accumulated other comprehensive income Subscription rights to shares 
Non-controlling interests 
Total net assets 
Total liabilities and net assets 

48,652
29,140302,852(12,251)
368,394
136,783(9)13,960461(1,429)149,766
316
5,058
523,535¥7,550,949

48,652
29,140326,122(17,296)386,619
112,745(134)
14,287463(12,196)
115,165377
5,564
507,727¥7,631,510

431,774
258,616
2,894,239(153,497)
3,431,132
1,000,580(1,192)
126,797
4,117(108,241)
1,022,061
3,349
49,383
4,505,925$67,727,285

As at March 31,

2016

The accompanying notes are an integral part of these statements.

17

The Gunma Bank, Ltd. and Consolidated Subsidiaries

Consolidated Statements of Income
Thousands of
U.S. dollars (Note 5)

Millions of yen

Years ended March 31,

2015

2016

2016

IncomeInterest income:Interest on loans and discounts Interest and dividends on securities 
Other interest income Fees and commissions 
Other ordinary income Other income 
Total income ¥59,774
24,324
1,288
18,91021,8196,535
132,652¥58,786
26,007
1,031
18,99623,753
7,648
136,224$521,711
230,811
9,157
168,590
210,80267,8781,208,949

2,261
419
1,033
6,632
18,26359,0793,962
91,65240,999

2,435
669
1,407
7,202
19,97457,472
3,783
92,94543,27821,6195,942
12,494
63,921
177,264
510,050
33,576
824,866
384,083

11,581
2,088
27,3291,418¥25,910

12,096
2,039
29,142526¥28,616

107,355
18,096258,632
4,668$253,964

Expenses
Interest expense:
Interest on deposits Interest on call money and bills sold 
Other interest expenses 
Fees and commissions payments 
Other ordinary expenses 
General and administrative expenses 
Other expenses (Note 19 and 22) 
Total expenses 
Profit before income taxes 
Income taxes:
Current Deferred Profit 
Profit attributable to non-controlling interests Profit attributable to owners of parent YenPer share amounts
Profit – primary Profit – fully diluted ¥ 56.37
56.30

U.S. dollars¥63.78
63.68$0.57
0.57

The accompanying notes are an integral part of these statements.

The Gunma Bank, Ltd. and Consolidated Subsidiaries

Consolidated Statements of Comprehensive Income
Thousands of
U.S. dollars (Note 5)

millions of yen

Years ended March 31,

2015

2016

2016

ProfitOther comprehensive income ( Note 13)
Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land 
Foreign currency translation adjustment 
Remeasurements of defined benefit plans, net of tax 
Share of other comprehensive income of entities accounted for using
the equity method 
Total other comprehensive income Comprehensive income(Details)
Comprehensive income attributable to owners of parent 
Comprehensive income attributable to non-controlling interests ¥27,329¥29,142$258,632

47,763
60
879
587
2,631

(24,096)
(125)
423
2
(10,766)(213,851)(1,111)
3,762
21(95,551)

133
52,056
79,386

49(34,513)(5,370)435(306,295)(47,663)

77,937¥1,448(5,887)¥516(52,246)$4,583

The accompanying notes are an integral part of these statements.
18

The Gunma Bank, Ltd. and Consolidated Subsidiaries

Consolidated Statements of Changes in Equity
Millions of yen
Shareholders’ equity
Capital stock¥48,652

Balance as of March 31, 2014 

Total shareholders’equityCapitalsurplusRetainedearnings

Treasuryshares¥29,140¥289,102¥ (5,312)

Cumulative effects of changes in accounting policies ¥361,583(5,672)

Restated balance (5,672)

48,652

29,140283,429(5,312)355,910

Dividends of surplus ——(4,416)—(4,416)

Profit attributable to owners of parent ——

25,910—25,910Purchase of treasury shares 

—

—

—

(9,567)(9,567)

Disposal of treasury shares 

—

—

(8)

515

507

Retirement of treasury shares —(0)(2,112)

2,112—

Reversal of revaluation reserve for land 

—

—

49

—

49

Net changes of items other than shareholders’ equity 

—

—

—

—

—

—

(0)

19,422(6,939)12,483¥48,652¥29,140¥302,852¥(12,251)¥368,394

Changes of items during period 

Total changes of items during period 
Balance as of March 31, 2015 

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities

Balance as of March 31, 2014 ¥ 88,916

Deferred
gains orlosses onhedges

Revaluation
reserve forland¥(70) ¥13,130

Total
Foreign
Remeasureaccumulated
currency
ments ofothertranslation defined benefit comprehensive
adjustments
plansincome¥(126) ¥(4,061)¥97,789

Subscription
rights toshares¥243

Noncontrollinginterests

Total net
assets¥8,183 ¥467,798

Cumulative effects of changes in accounting
policies (5,672)
88,916(70)

13,130(126)(4,061)97,789243

8,183

Dividends of surplus 

—

—

—

—

—

—

—

—

(4,416)

Profit attributable to owners of parent 

—

—

—

—

—

—

—

—

25,910Purchase of treasury shares 

—

—

—

—

—

—

—

—

(9,567)

Disposal of treasury shares 

—

—

—

—

—

—

—

—

507

Retirement of treasury shares 

—

—

—

—

—

—

—

—

—

Reversal of revaluation reserve for land 

—

—

—

—

—

—

—

—

49

Net changes of items other thanshareholders’ equity 

47,867

60

830

587

2,631

51,97773(3,124)48,926

Total changes of items during period 

47,867

60

830

587

2,631

51,97773(3,124)

61,409¥(9) ¥13,960¥461¥(1,429) ¥149,766¥316

Restated balance 

462,125

Changes of items during period 

Balance as of March 31, 2015 

¥136,783¥5,058 ¥523,535

The accompanying notes are an integral part of these statements.

19Millions of yen
Shareholders’ equity
Retainedearnings

Treasuryshares¥48,652¥29,140¥302,852¥(12,251)

Capital stock

Balance as of March 31, 2015 

Total shareholders’equityCapitalsurplus¥368,394

Changes of items during period 
Dividends of surplus ——(5,407)—(5,407)

Profit attributable to owners of parent ——28,616—

28,616

Purchase of treasury shares 

—

—

—

(5,532)(5,532)

Disposal of treasury shares 

—

—

(35)

487

452

Reversal of revaluation reserve for land 

—

—

97

—

97

Net changes of items other than shareholders’ equity 

—

—

—

—

—

—

—

23,270(5,044)

18,225¥48,652¥29,140¥326,122¥(17,296)¥386,619

Total changes of items during period 
Balance as of March 31, 2016 

Accumulated other comprehensive income

Balance as of March 31, 2015 

Valuationdifference on
availablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

Total
Foreign
Remeasureaccumulated
currency
ments ofothertranslation defined benefit comprehensive
adjustment
plansincomeSubscription
rights toshares¥136,783¥(9) ¥13,960¥461 ¥ (1,429) ¥149,766¥316

Noncontrollinginterests

Total net
assets¥5,058 ¥523,535

Changes of items during period 
Dividends of surplus 

—

—

—

—

—

—

—

—

(5,407)

Profit attributable to owners of parent 

—

—

—

—

—

—

—

—

28,616

Purchase of treasury shares 

—

—

—

—

—

—

—

—

(5,532)

Disposal of treasury shares 

—

—

—

—

—

—

—

—

452

Reversal of revaluation reserve for land 

—

—

—

—

—

—

—

—

97

Net changes of items other thanshareholders’ equity (24,038 )

(125)

326

2

(10,766)(34,600)

60

505(34,033)

Total changes of items during period (24,038 )

(125)

326

2

(10,766)(34,600)

60

505(15,808)¥463 ¥(12,196) ¥115,165¥377

Balance as of March 31, 2016 

¥112,745¥(134) ¥14,287

The accompanying notes are an integral part of these statements.

20¥5,564 ¥507,727

Thousands of U.S. dollars
Shareholders’ equity

Balance as of March 31, 2015 

Capital stock

CapitalsurplusRetainedearnings

TreasurysharesTotal shareholders’equity$431,774$258,616$2,687,722$(108,729)$3,269,383

Changes of items during period 
Dividends of surplus ——(47,993)—(47,993)

Profit attributable to owners of parent ——253,964—

253,964

Purchase of treasury shares 

—

—

—

(49,097)(49,097)

Disposal of treasury shares 

—

—

(316)

4,329

4,013

Reversal of revaluation reserve for land 

—

—

862

—

862

Net changes of items other than shareholders’ equity 

—

—

—

—

—

—

—

206,517(44,768)

161,749$431,774$258,616$2,894,239$(153,497)$3,431,132

Total changes of items during period 
Balance as of March 31, 2016 

Accumulated other comprehensive income
Valuationdifference
On availablefor-salesecurities

Balance as of March 31, 2015 $1,213,911

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments$   (81) $123,897$4,096

Remeasurements ofdefined benefit
plans

Total
accumulated
other
Subscription
comprehensive
rights toincomeshares$(12,690) $1,329,133$2,808

Noncontrollinginterests

Total net
assets$44,893 $4,646,217

Changes of items during period 
Dividends of surplus 

—

—

—

—

—

—

—

—

(47,993)

Profit attributable to ownersof parent 

—

—

—

—

—

—

—

—

253,964

Purchase of treasury shares

—

—

—

—

—

—

—

—

(49,097)

Disposal of treasury shares

—

—

—

—

—

—

—

—

4,013

Reversal of revaluation reserve
for land 

—

—

—

—

—

—

—

—

862

(213,331)(1,111)2,900

21(95,551)(307,072)

541

4,490

(302,041)(1,111)2,900

21(95,551)(307,072)

541

4,490

(140,292)$4,117 $(108,241) $1,022,061$3,349Net changes of items other thanshareholders’ equity 
Total changes of items during period 
Balance as of March 31, 2016 

(213,331)$1,000,580$(1,192) $126,797$49,383 $4,505,925

The accompanying notes are an integral part of these statements.

21

The Gunma Bank, Ltd. and Consolidated Subsidiaries

Consolidated Statements of Cash Flows
Thousands of
U.S. dollars (Note 5)

Millions of yen

Years ended March 31,
Cash flows from operating activities
Profit before income taxes 
Depreciation 
Impairment loss Gain on bargain purchase 
Share of (profit) loss of entities accounted for using equity method 
Increase (decrease) in allowance for loan losses 
Increase (decrease) in provision for directors’ bonuses 
Increase (decrease) in net defined benefit asset 
Increase (decrease) in net defined benefit liability 
Increase (decrease) in provision for directors’ retirement benefits 
Increase (decrease) in provision for reimbursement of deposits 
Increase (decrease) in provision for point card certificates 
Increase (decrease) in provision for contingent loss Gain on fund management 
Financing 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 securities 
Net decrease (increase) in loans and bills discounted 
Net increase (decrease) in deposit 
Net increase (decrease) in negotiable certificates of deposit 
Net increase (decrease) in borrowed money (excluding subordinated borrowings) Net decrease (increase) in deposit (excluding deposit paid to Bank of Japan) Net decrease (increase) in call loans 
Net increase (decrease) in call money 
Net increase (decrease) in payables under securities lending transactions 
Net decrease (increase) in foreign exchanges - assets 
Net increase (decrease) in foreign exchanges - liabilities 
Net decrease (increase) in lease receivables and investment assets Proceeds from fund management 
Payments for finance 
Other, net 
Subtotal 
Income taxes paid 
Net cash provided by (used in) operating activities 
Cash flows from investing activities
Purchases of securities Proceeds from sales of securities Proceeds from redemption of securities 
Purchase of property, plant and equipment 
Purchase of intangible assets Proceeds from sales of property, plant and equipment Net cash provided by (used in) investing activities 
Cash flows from financing activities
Proceeds from issuance of bonds with subscription rights to shares 
Purchase of treasury shares Proceeds from sales of treasury shares 
Cash dividends paid 
Dividends paid to non-controlling interests 
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 

The accompanying notes are an integral part of these statements.
22

2015

2016

2016

¥40,999
5,467
32(2,385)(86)(7,405)9
6,801(1,218)
(69)
27
11
(63)
(85,387)
3,714(2,160)
(395)
46
425
1,674
(254,505)
134,62128,706
7,529
12,869(19,213)
109,772
38,161(455)(12)(2,108)84,920(3,882)(48,618)
47,824(13,058)
34,765¥43,278
5,943
91
—
(100)
(5,639)(5)
316,592
(68)
12
(0)
(124)
(85,825)
4,513(2,744)
15
(305)
255
35
(203,509)
172,433(6,746)
70,116(8,381)
115,707(140,968)
7,667
1,342
51
(2,400)85,368(4,393)(1,135)61,081(11,261)
49,820$384,083
52,745814—(891)(50,048)(44)
32
147,255
(607)
108
(5)
(1,102)(761,679)
40,055(24,353)
135(2,715)2,269
314(1,806,080)
1,530,296(59,869)
622,261(74,379)
1,026,869(1,251,053)
68,051
11,916453(21,303)757,622(38,993)(10,074)
542,083(99,943)
442,140(296,575)
140,903
171,108(3,544)(2,507)—9,386(251,243)
126,928
253,258(3,582)(2,462)
124
123,024(2,229,710)
1,126,454
2,247,593(31,792)(21,850)
1,109
1,091,804

21,416(9,567)507(4,416)
(10)
7,928
609
52,689109,118¥161,807—(5,532)452(5,403)(10)(10,493)(6)
162,343
161,807¥324,151—(49,097)
4,013(47,954)(93)(93,131)(61)
1,440,752
1,435,995$2,876,747

The Gunma Bank, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements
1. Summary of Significant Accounting Policies
a. Basis of Presentation
The accompanying consolidated financial statements of The
Gunma Bank, Ltd. (the “Bank”) and consolidated
subsidiaries (the “Group”) have been prepared from theaccounts maintained by the Bank in accordance with theprovisions set forth in the Banking Law, the Financial
Instruments and Exchange Act of Japan and other applicable
rules and regulations and in conformity with accounting
principles generally accepted in Japan, which are different incertain respects as to application and disclosure requirementsof International Financial Reporting Standards.
In addition, the notes to the consolidated financial
statements include information which is not required underaccounting principles generally accepted in Japan but ispresented herein as additional information.
Certain items have been reclassified from the original
consolidated financial statements filed with the Prime
Minister as required by the Financial Instruments andExchange Act for the convenience of readers outside Japan.
Certain prior year amounts have been reclassified to comply
with the current year presentation.
b. Consolidation
The accompanying consolidated financial statements include
the accounts of the Bank and its significant subsidiaries. The
number of consolidated subsidiaries as of March 31, 2015
and 2016 was 4 and 5, respectively.
Gungin Securities Co., Ltd. has been included in the scopeof consolidation from there of fiscal year ended March 31,
2016 due to the establishment.
The remaining unconsolidated subsidiaries have been
excluded from the scope of consolidation because, judging
from their assets, ordinary profit, profit or loss (amounts
corresponding to the Bank’s equity interest), retained
earnings (amounts corresponding to the Bank’s equity
interest) and accumulated other comprehensive income(amounts corresponding to the Bank’s equity interest), they
do not have a material effect on the accompanying
consolidated financial statements.
As of March 31,2015 and 2016, the Bank had 2
unconsolidated subsidiaries, which were accounted for using
the equity method.
Gunma Bank Business Support Investment Business
Limited Partnership has been included in the scope of
unconsolidated subsidiary not accounted for using the equity
method from the fiscal year ended March 31, 2016 due its
establishment.
Gunma Capital No.2 Investment Business Limited
Partnership which was an unconsolidated subsidiary notaccounted for using the equity method for the fiscal year
ended March 31, 2015 was liquidated during the fiscal year
ended March 31, 2016.
In reference to the consolidated subsidiaries’ closing dates,
one company closes accounts at the end of December, whilefour others close at the end of March.
Consolidation is based on each subsidiary’s respective
financial statement on the respective closing dates.
For any significant transactions talking place between the
consolidated closing date and each subsidiary’s closing date,necessary adjustments are made.
c. Trading Account Securities
Trading securities purchased for trading purpose are stated atmarket value at the fiscal year end with its related cost of
sales being determined mainly by the moving averagemethod.
d. Securities
Securities are classified into four categories: trading, held-tomaturity bonds, equity of subsidiaries and affiliates or
securities available for sale. Trading securities are carried atmarket value and held-to-maturity bonds are carried atamortized cost. Equity of subsidiaries and affiliates are statedat cost and accounted for by the equity method, respectively.
Marketable securities classified as securities available for saleare carried at market value with changes in unrealized
holding gain or loss, net of the applicable income taxes,
recorded as a component of net assets. Securities whose fairvalue is not readily determinable are stated at cost
determined by the moving average method or amortized
cost.
Securities comprising the trust asset in money held in trust
which is solely managed primarily for the purpose of
securities operations are stated at market value.

e. Derivatives
Derivatives are stated at market value.
f. Non-current assets(1) Property, plant and equipment
Depreciation of Property, plant and equipment of the Bankare computed by the straight line method.
The estimated useful lives principally applied are as follows.
Buildings
6 to 50 years
Equipment and furniture
3 to 20 years
Depreciation of Property, plant and equipment of theconsolidated subsidiaries are principally computed by thestraight line method based on the estimated useful lives of
the respective assets.
(2) Intangible assets
Intangible assets are depreciated using the straight line
method. Software used internally is depreciated over its
estimated useful life (mainly five years).
(3) Leased assets
Leased assets in “Property, plant and equipment” subject tofinance lease transactions other than those under which thetitle of the leased equipment is transferred to the lessee aredepreciated using the straight line method assuming that thelease period is equal to the useful life. If a guarantee forresidual value is prescribed by the lease contract, the residual
value is equal to such guaranteed residual value; otherwise,
the residual value is zero.

g. Foreign Currency Translation
Assets and liabilities denominated in foreign currencies aretranslated into Japanese yen at the exchange rates prevailingat the balance sheet date.
h. Allowance for loan losses
The reserve for possible loan losses is provided in accordancewith the internal policies regarding write-offs and allowance
for loan losses.
For credit extended to obligors that are legally bankrupt
under the Bankruptcy Law, Special Liquidation under theCommercial Code or other similar laws, and to obligors thatare effectively in similar conditions, reserves are maintained
at 100% of amounts of claims net of expected amounts
recoverable from the disposal of collateral and/or theamounts recoverable under guarantees.
For credit extended to obligors that are not yet legally orformally bankrupt but who are likely to be bankrupt, reserves
are maintained at the amount deemed necessary based on
overall solvency analyses of the amount of claims lessexpected amounts recoverable under guarantees.
For credit extended to obligors with Restructured Loan as
defined in Note 5 below, reserves are maintained using
Discounted Cash Flow Method (“the DCF Method”) if i) the
exposure to the obligor exceeds a certain threshold and ii)
the future cash flow from the repayment of principal andinterest can be reasonably estimated. Under the DCF Method,
the reserve is determined as the difference between the bookvalue of the loan and its present value of future cash flows
discounted using the contractual interest rate before the loan
was classified as a Restructured Loan.

23

For credit extended to all other obligors, reserves aremaintained at rates derived from default experiences for acertain period in the past, etc.
The reserve for possible loan losses is provided based on
the result of self assessment on quality of assets which is
performed in accordance with the Bank’s internal guidelines
and is independently reviewed by the internal audit unit.
Other consolidated subsidiaries record a general reserve forpossible loan losses by applying the historical loan-loss ratio
observed over specific periods, and the specific reserve forcertain loans at the estimated uncollectible amount based on
an assessment of each borrower’s ability to repay.

i. Provision for directors’ bonuses
A provision is provided for the payments of bonuses todirectors and Audit & Supervisory Board Member at theamount of the estimated bonus payments corresponding to
the end of the fiscal year.
j. Accounting method for retirement benefits
In calculating retirement benefit obligation, the Bank uses
the benefit formula basis for the purpose of attributing
expected retirement benefit payment to the period up to theend of the fiscal year. In addition, the accounting method for
actuarial gain and loss is as follows:
Actuarial gain and loss
Actuarial gain and loss are amortized from the year
following the occurrence primarily by the straight line
method over a fixed period (mainly 10 years) that is shorter
than the average remaining service years of the eligible
employees.
Meanwhile, certain consolidated subsidiaries calculateliability for retirement benefits and retirement benefit
expenses by the simplified method, using the amount of
retirement benefit required for voluntary resignations at theend of the fiscal year as retirement benefit obligation.
k. Provision for directors’ retirement benefits
To prepare for the payment of retirement benefits to directors
and Audit & Supervisory Board Member, a reserve is provided
at the amount deemed to have accrued at the end of the fiscal
year (the estimated amount payable on the balance sheet
date based on the bylaws) out of the estimated amountpayable as retirement benefits to directors and Audit &Supervisory Board Member.
l. Provision for reimbursement of deposits
Provision for reimbursement of deposits accounts is provided
for the repayment of dormant deposits which are no longer
recorded as liabilities, based on the estimated reimbursement
losses that may be incurred should the deposits bewithdrawn.
m. Provision for point card certificates
Provision for point card certificates is provided for the future
usage of points granted to credit card members at the amountestimated to be used in the future periods.
n. Provision for Contingent Loss
The provision for contingent loss is provided for the paymentof charges related to the responsibility-sharing system to
Credit Guarantee Corporations at the amount expected to be
paid based on the past payment experience.
o. Income Taxes
Deferred tax assets and liabilities are determined based on
the differences between financial reporting and the tax basisof the assets and liabilities and are measured using theenacted tax rates and laws which will be in effect when the
differences are expected to be reversed.

24

p. Earnings Per Share
Earnings per share was computed based on the profit
available for distribution to stockholders and the number ofshares of common stock outstanding during the fiscal year.
q. Hedge Accounting
Hedge Accounting for Interest Rate Risks
The Bank adopted the standard treatment of the Industry
Audit Committee Report No. 24, “Treatment of Accounting
and Auditing of Application of Accounting Standard for
Financial Instruments in the Banking Industry” (“Report No.
24”) issued by the JICPA on February 13, 2002. Under the
standard treatment of the Report No. 24, the Bank applies
the deferred method of hedge accounting for qualifying
derivative instruments to mitigate the interest rate risks
arising from various financial assets and liabilities. Hedge
effectiveness is assessed for each designated group of hedged
items (such as deposits) and the corresponding group ofhedging instruments (such as interest rate swaps). Both of
the hedged items and hedging instruments are grouped basedon their durations and compared for the testing ofeffectiveness.
In addition to the above, the Bank applies exceptional
treatment for certain interest swap contracts that meet thecriteria for the exceptional treatment, under which eligibleinterest rate swap contracts are accounted for on an accrualbasis.
Hedge Accounting for Foreign Exchange Risks
For foreign exchange risks arising from financial assets andliabilities denominated in foreign currencies, the Bank
adopted the standard treatment prescribed in the Report No.
25 issued by the JICPA on July 29, 2002. Under thattreatment, the Bank applies the deferred method of hedge
accounting. The Bank enters into currency-swaps and foreignexchange swaps to mitigate the foreign exchange risks arisingfrom financial assets and liabilities denominated in foreign
currencies and assesses, both at the hedge’s inception and on
an ongoing basis, whether these derivatives are highly
effective in offsetting changes in cash flows of hedged items(financial assets and liabilities). Hedge effectiveness is
assessed by ensuring that the foreign currency position of thehedging instruments that are designated to hedge foreignexchange risk of the foreign currency-denominatedreceivables and payables exceeds that of the hedged foreign
currency-denominated receivables and payables.

r. Recognition for Income and Expenses
Income and expenses associated with finance leasetransactions are recognized when lease fees are received.
s. Cash and Cash Equivalents
Cash and cash equivalents in the consolidated statements ofcash flows consist of cash and deposit with the Bank of Japan
which are included in “Cash and due from banks” on the
consolidated balance sheets.

2. Changes in Accounting Policies(Application of “Accounting Standards for Business
Combinations,” etc.)
Effective from the fiscal year ended March 31, 2016, The Bank
adopted “Revised Accounting Standard for Business
Combinations” (ASBJ Statement No.21, September 13, 2013;
hereinafter the “Accounting Standard for Business
Combinations”), “Revised Accounting Standard forConsolidated Financial Statements” (ASBJ Statement No.22,
September 13, 2013; hereinafter the “Accounting Standard
for Consolidation”), and “Revised Accounting Standard forBusiness Divestitures” (ASBJ Statement No.7, September 13,
2013; hereinafter the “Accounting Standard for Business
Divestitures”) and other related standards. Accordingly,difference arising from changes in the Bank’s ownershipinterests in subsidiaries in cases where control is retained isrecognized in capital surplus and acquisition-related costs arerecognized as expenses in the fiscal year in which they arise.
Regarding business combination taking place on or after the
beginning of the fiscal year ended March 31, 2016, anadjustment to the provisional amount arising from thefinalization of the tentative accounting treatment relating to
the purchase price allocation is retrospectively recognized in
the consolidated financial statements for the accounting
period in which the business combination occurs. In
addition, presentation of profit and other items has beenrevised, and the term “minority interests” has been renamed
as “non-controlling interests”. For consistency with thesechanges, the consolidated financial statements for the year
ended March 31, 2015 have been reclassified.
In the consolidated statement of cash flows for the year
fiscal year ended March 31, 2016, cash flows from purchaseor sales of equity of subsidiaries not resulting in change inthe scope of consolidation are recognized under “Cash flows
from financing activities” whereas cash flows concerning any
costs associated with the purchase of equity of subsidiaries
resulting in change in the scope of consolidation or any costs
incurred associated with purchase or sales of equity ofsubsidiaries not resulting in change in the scope of
consolidation are recognized under “Cash flows fromoperating activities.”
The Bank has adopted the Accounting Standards for
Business Combinations, etc. from the beginning of the fiscal
year ended March 31, 2016 prospectively, in accordance withthe transitional accounting treatments set forth in Paragraph58-2(4) of the Accounting Standard for Business
Combinations, Paragraph 44-5(4) of the AccountingStandard for Consolidation and Paragraph 57-4(4) of the
Accounting Standard for Business Divestitures.
There is no effect of these changes on the consolidated
financial statements.

3. Accounting Standards,etc. Not Yet Adopted“Implementation Guidance on Recoverability of Deferred Tax
Assets” (ASBJ Guidance No.26, March 28, 2016; hereinafter
the “Implementation Guidance”)(1) Outline
The Implementation Guidance has been partially revised
basically following the guidelines regarding recoverability ofdeferred tax assets prescribed in the JICPA Audit Committee
Report No.66, “Auditing Treatment for Determining the
Recoverability of Deferred Tax Assets.”(2) Planned date of adoption
The Bank plans to adopt the Implementation Guidancefrom the beginning of the fiscal year commencing on April
1, 2016.
(3) Impact of the adoption of the above accounting standards,
etc.
The impact of the adoption of the Implementation
Guidance is not yet determined.

4. Additional Information(Application of “Practical Solution on Transactions ofDelivering the Company’s Own Stock to Employees etc.
through Trusts”)
The Bank enters into transactions of delivering its own sharesto the employees’ stockholding association through trusts forthe purpose of employee welfare.
1. Outline of transactions
Based on the resolution at the Board of Directors meeting
held on February 8, 2013, the Bank introduced the“Employee Stock Ownership Plan Trust” (hereinafter, the“ESOP Trust”) for the purpose of enhancing employee
welfare in line with the Bank’s 80th anniversary.
This is an incentive plan that covers all the employees
participating in the employees’ stock holding association.
Under the plan, the Bank sets up the ESOP Trust accountin a trust bank, where the ESOP Trust preliminary acquires
from the market the number of shares of the Bank theemployee’s stockholding association is expected to acquire
during four years and eight months following the setting upof the trust. Subsequent to this, the ESOP Trust will sell theshares of the Bank to the employee’s stockholding association
on an ongoing basis. If the amount equivalent to gain on saleof shares is accumulated in the ESOP Trust at the time theshares are sold out, the amount will be treated as residual
assets and distributed to eligible beneficiaries. As the Bank
provides a guarantee of debt for the ESOP Trust to acquire
the shares of the Bank, if the amount equivalent to loss onsale of shares is accumulated in the ESOP Trust due to a fallin the share price of the Bank, and debt in an amountequivalent to that loss is remaining in the Trust at the time
the Trust expires, the Bank is obliged to repay the remaining
debt in accordance with the guarantee agreement.
2. While the Bank has applied the “Practical Solution on
Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts” (ASBJ PITF No. 30, March 26,2015), it is accounted for using the same method the Bank has
previously adopted.
3. Matters relating to the shares of the Bank held by the trust(1) Carrying amount of shares held by the trust:
As of March 31, 2015
¥1,993 million
As of March 31, 2016
¥1,598 million(2) The shares of the Bank held by the trust are recorded astreasury shares under shareholders’ equity.
(3) The number of shares at the fiscal year end and the number
of weighted average shares during the fiscal year
The number of shares:
As of March 31, 2015
3,995 thousand shares
As of March 31, 2016
3,203 thousand shares
The weighted average number of shares:
During the fiscal year ended March 31, 2015
4,411 thousand shares
During the fiscal year ended March 31, 2016
3,636 thousand shares
The number of shares at the fiscal year end and theweighted average number of shares during the fiscal year are
included in the number of treasury shares that are excluded
from the calculation of per share data.

5. Yen and U.S. Dollar Amounts
The Bank maintains its accounting records in yen. The yenamounts included in the accompanying consolidated
financial statements are stated in millions of yen, truncating
amounts of less than one million yen. Therefore, the totals or
subtotals presented in the accompanying consolidated
financial statements may not always add up to the sum of therespective account balances. “—” is used to denote nil and“0” is used to denote rounding down to zero.
Amounts in U.S. dollars are included solely for theconvenience of the reader. The rate of ¥112.68 = U.S.$1.00,
the approximate exchange rate prevailing on March 31, 2016,has been used. The inclusion of such amounts is notintended to imply that yen have been or could be readily
converted, realized or settled in U.S. dollars at that or any
other rate.

25

6. Loans and Bills Discounted(1) Loans and bills discounted at March 31, 2015 and 2016
included the following items:
Balance of loans to borrowers under bankruptcy procedures
as of March 31, 2015 and 2016 were ¥5,778 million and¥5,509 million (U.S.$48,898 thousand), respectively.
Balance of delinquent loans as of March 31, 2015 and2016 were ¥61,260 million and ¥56,992 million(U.S.$505,791 thousand), respectively.
Loans to borrowers under bankruptcy procedures consistof non-accrual loans on which the payment of principal orinterest is well past due or there is no prospect of recovery of
the principal or interest from the borrower (excluding thewritten-down portion of the loan). This category also
includes the loans cited in Article 96-1-3 and 96-1-4 of the
Corporation Tax Law (Government Ordinance No. 97 of
1965).
Delinquent loans are non-accrual loans, which do not fallunder the classifications of loans to bankrupt borrowers or
financial assistance loans where interest has been suspended
for the purpose of business rehabilitation or debtor
assistance.
(2) Balance of loans past due for 3 months or more as of March
31, 2015 and 2016 were ¥784 million and ¥1,070 million(U.S.$9,501 thousand), respectively.
Loans past due for 3 months or more are classified in thiscategory when 3 months or more have elapsed since the due
date without the payment of principal or interest. Thebalance of loans to borrowers under bankruptcy procedures
and the balance of delinquent loans are not included in thiscategory.
(3) Balance of restructured loans as of March 31, 2015 and 2016
were ¥43,436 million and ¥44,012 million (U.S.$390,596
thousand), respectively.
Restructured loans include loans which have been
restructured to support the rehabilitation of certain
borrowers who are encountering financial difficulties, with
the intention of ensuring recovery of the loans by providing
easier repayment terms for the borrowers (such as by
reducing the rate of interest or by providing a grace period
for the payment of principal/interest, etc.). Excluded fromthis balance are the balance of loans to borrowers underbankruptcy procedures, the balance of delinquent loans andthe balance of loans past due for 3 months or more.
(4) The total balance of loans to borrowers under bankruptcy
procedures, delinquent loans, loans past due for 3 months
or more and restructured loans as of March 31, 2015 and2016 were ¥111,259 million and ¥107,585 million(U.S.$954,786 thousand), respectively.
(5) Bills discounted are accounted for as financial transactionsin accordance with JICPA industry Audit Committee Report
No.24. The Bank has rights to sell or pledge bankacceptances bought, commercial bills discounted,
documentary bills and foreign exchange bought without
restrictions. Their total face value as of March 31, 2015 and2016 were ¥39,796 million and ¥38,744 million(U.S.$343,845 thousand), respectively.

7. Loan Commitments
Contracts of overdraft facilities and loan commitment limits
are contracts that require the Bank to extend credit tocustomers up to the prescribed limits in response tocustomers’ application of loan as long as there is no violationof any condition in the contracts. The unused amountrelating to these contracts within the limits was ¥1,275,169
million, ¥1,311,247 million (U.S.$11,636,911 thousand),26

respectively at March 31, 2015 and 2016. ¥1,222,112 million,¥1,262,580 million (U.S.$11,205,009 thousand),
respectively, at March 31, 2015 and 2016 out of these unusedbalances were for the contracts of which original contractual
term are one year or less, or unconditionally cancelable atany time.
Since many of these commitments expire without being
drawn down, the unused amount does not necessarily
represent a future cash requirement. Most of these contracts
have conditions that the Bank can refuse customers’ loan
application or decrease the contract limits with proper
reasons (e.g., changes in financial situation, deterioration incustomers’ creditworthiness). At the inception of contracts,
the Bank obtains real estate, securities, etc. as collateral if
considered to be necessary. Subsequently, the Bank performs
periodic review of the customers’ business results based oninternal rules, and takes necessary measures to reconsider
conditions in contracts and/or require additional collateraland guarantees.

8. Financial Instruments(1) The financial instruments and related disclosuresa. Policy for financial instruments
The Group provides mainly banking services and otherfinancial services including leasing. The Bank engages infund management including investment in securities andfunding in the call market, in addition to the business of
accepting deposits and negotiable certificates of deposit aswell as provision of loans. With its financial assets andliabilities exposed to interest rate risk, the Bank adopts asset
liability management (ALM) to avoid incurring unexpected
loss due to fluctuations in interest rates. Thus, the Bank’s
derivative transactions are not only intended to provide
solutions to customers’ financial needs, but also to conduct
ALM within the Bank.
There are the Bank’s consolidated subsidiaries that engage
in securities business or banking business.
Also leasing operation is conducted by a consolidated
subsidiary.
b. Nature and extent of risks arising from financial
instruments
Financial assets held by the Group comprise mainly loans
to clients, which are exposed to credit risk. The Group’s
financial assets also include securities such as stocks andbonds, which are exposed to credit risk of the issuingentities as well as the risk of market price fluctuations.
Assets and liabilities in the forms of loans, bonds anddeposits are exposed to interest rate risk, which is partiallyhedged by interest rate swap transactions. Likewise foreign
currency denominated loans and bonds involve foreign
currency exchange fluctuation risk, which is mitigated bymaking it a rule to match the currency of investment andfinancing,or hedged by the use of currency swap
transactions.
Call money and borrowed money, etc. are exposed to
cash flow risk, involving inability to settle payments on due
dates as a result of the unavailability of market under certain
circumstances.
The Bank conducts derivative transactions includinginterest rate swaps and currency-swaps in an effort toaccommodate clients’ financial needs, and as part of theBank’s ALM effort. Besides, the Bank engages in proprietaryderivative trading with the purpose to earn short-term
spread, subject to risk management including the setting ofcertain position limits and maximum allowable losses, inan effort to prevent losses in excess of certain threshold.
The Bank applies hedge accounting, The Bank confirmsthat for hedges of interest rate to which exceptional
treatment of interest rate swap is applied, the conditions for
exceptional treatment are met and that for hedges of theforeign currency exchange fluctuation risk, foreign currency
position exceeds the hedged instruments.

market turmoil that exceeds historical levels of market
fluctuations.

c. Risk management for financial instruments
The Bank has formulated Basic Policies of Risk Management
and ancillary rules concerning risks, along with thefollowing structure to enforce adequate risk management.

3) Cash flow risk management
Risk management structure is in place, based on the internal
rules concerning cash flow risks including the Basic Rules ofCash Flow Risk Management.
With respect to cash flow risk, the Bank determines thedepartment in charge of cash flow management, which
rigorously manages cash flow periodically (e.g., daily,
weekly, monthly) including its overseas bases. In addition,
the ALM & Profit Management Committee, which isconvened each month, takes every precaution to facilitate
cash flow by identifying and analyzing the cash flow status,
the balance between investing and funding, interest rate
movements and other factors.
We have also prepared a Contingency Plan to prepare
against emergencies, and are taking every precaution
including developing systems that enable us to respond
appropriately to a wide range of scenarios.

1) Credit risk management
The Bank has established its credit management structure
based on the internal rules concerning credit risks, including
the Credit Policy and the Basic Rules for Credit Risk
Management.
Provision of loans and other credit facilities involves
credit risk management such as individual credit
review,post-origination credit control including theutilization of Borrower Rating System and self assessment,
handling of problem loans and monitoring of the credit
concentration in particular sectors in loan portfolios.
Credit risks associated with securities investment andmarket transactions are managed by capturing fair value andcredit rating.
Primary credit risk management tools such as credit rating
system, self-assessment of the Bank’s asset, write-off /reserve
provisioning, are developed and examined by Risk
Management Department which is independent of thebusiness promotion division and the screening division,and checked by Inspection & Audit Department, for the
purpose of proper check and balance. Executive Committee
and the Board of Directors are updated on the latest risk
situation regularly and as appropriate.
2) Market risk management
Risk management structure is in place, based on the internal
rules concerning market risks including the Basic Rules ofMarket Risk Management.
For market transactions, the department in charge ofmarket transactions is structured in such a way that they
check each other: the Treasury & Securities Department
serves as the front office department in charge oftransactions, whereas the Financial Markets & International
Department serves as the middle-office and back-office
department in charge of risk management andadministrative processing.
In addition, the Bank establishes the risk tolerance andthe risk management criteria, conducts monitoring, andreports the monitored information to the ALM & Profit
Management Committee via the Risk Management
Department.
The principal financial instruments that expose the Bank
to market risk include loans, deposits, securities andderivative transactions. In order to monitor the degree ofmarket risk exposure of these financial instruments andfinancial obligations, the Bank employs the VaR technique
as a uniform indicator tool.
It applies the historical-simulation method to thecomputation of VaR. Its VaR model uses a 99.9% confidence
level and a 5-year observation period, with various holding
periods depending on the holding purposes.
The total amount of value at risk (VaR) for the Bank as ofMarch 31, 2016 was ¥77,500 million (The total amount ofvalue at risk (VaR) for the Bank as of March 31, 2015 was¥78,900 million).
The Bank conducts back tests by comparing the VaR
derived from its measuring model and actual gains or losses,
in order to confirm that its measuring model captures themarket risk with sufficient adequacy. It should be noted that
the VaR represents the amount of market risk under thecondition of a certain event probability which wasstatistically calculated based on historical market
fluctuations; therefore the model may not be able to capture
sufficiently the risk associated with financial instruments in

d. Supplementary explanations on fair value of financial
instruments
Fair value of financial instruments are measured based on
the quoted market price, if a quoted market price isavailable, or are measured based on the reasonably
estimated value if a quoted market price is not available.
Fair value of financial instruments whose quoted market
price is not available is calculated based on certain
assumptions, and the value might differ if different
assumptions are used. In addition, the contract amount of
the derivative transactions does not represent the market
risk of the derivative transactions.
(2) Fair value of financial instruments
The carrying value on the consolidated balance sheet andfair value of financial instruments as of March 31, 2015 and2016 as well as the differences between these values aredescribed below. Financial instruments such as non-listed
shares whose fair value is not readily determinable are notincluded in the table.

27

Carrying Value

1. Due from Banks 
2. Securities
Held-to-maturity bonds 
Available for sale 
3. Loans and bills discounted 
Allowance for loan losses 

Differences¥164,918¥164,918¥—22,8632,292,520
4,806,908(42,158)
4,764,750¥7,245,053

23,042
2,292,520

178—

4,810,193¥7,290,675

45,443¥45,622

1. Deposits 
2. Negotiable certificate of deposit 
3. Payable under securities lending transaction 
4. Borrowed money Total liability ¥6,112,402
142,955
262,906
187,647¥6,705,912¥6,112,666
142,955
262,906
187,647¥6,706,176

¥264
(0)
—
—
¥264

Derivative transaction
derivatives to which hedge accounting is not applied derivatives to which hedge accounting is applied 
Total derivatives ¥287(4,790)¥(4,503)¥287(4,790)¥(4,503)

¥—
—
¥—

Total asset 

Carrying Value

Millions of yen
2016
Market Value

Differences¥335,643¥335,643¥—12,2382,115,445
5,010,417(37,068)
4,973,349¥7,436,677

12,386
2,115,445

148—

5,023,233¥7,486,709

49,884¥50,032

1. Deposits 
2. Negotiable certificate of deposit 
3. Payable under securities lending transaction 
4. Borrowed money Total liability ¥6,284,836
136,209
270,574
257,764¥6,949,384¥6,285,135
136,209
270,574
257,764¥6,949,684

¥299
—
—
—
¥299

Derivative transaction
derivatives to which hedge accounting is not applied derivatives to which hedge accounting is applied 
Total derivatives 

¥334
3,097
¥3,431

¥334
3,097
¥3,431¥——¥—

1. Due from Banks 
2. Securities
Held-to-maturity bonds 
Available for sale 
3. Loans and bills discounted 
Allowance for loan losses 
Total asset 

28

Millions of yen
2015
Market ValueCarrying Value

1. Due from Banks 
2. Securities
Held-to-maturity bonds 
Available for sale 
3. Loans and bills discounted 
Allowance for loan losses 
Total asset 
1. Deposits 
2. Negotiable certificate of deposit 
3. Payable under securities lending transaction 
4. Borrowed money Total liability 
Derivative transaction
derivatives to which hedge accounting is not applied derivatives to which hedge accounting is applied 
Total derivatives Thousands of U.S. dollars
2016
Market Value

Differences$2,978,735$2,978,735—

108,610
18,773,926
44,465,901(328,972)
44,136,929$65,998,200

109,924
18,773,926

1,314
—

44,579,639$66,442,224

442,710$444,024$55,775,968
1,208,815
2,401,267
2,287,578$61,673,628$55,778,627
1,208,815
2,401,267
2,287,578$61,676,287$2,660———$2,661$2,964$27,486$30,450$2,964$27,486$30,450———(Note 1)
Method of estimating fair value
Assets1) Cash and due from banks
For due from banks without maturity, book value is reported as their fair value. Due from banks with maturity has short-term maturity(1 year or less), and thus book value is recorded as its fair value because of the proximity between the two.
2) Securities
Shares are stated at prices quoted on stock exchanges, while bonds are stated at the reference prices for over-the-counter bondtransactions (average) published by Japan Securities Dealers Association. Investment trusts are stated at the official reference price.
Privately-placed bonds with the Bank’s guarantee are stated at the fair value, calculated by discounting the expected cash flows
estimated to reflect the issuing entity’s credit risk as of the closing date, using the market interest rate. Notes to securities by holding
purpose are stated in “Securities.”
3) Loans and bills discounted
Interest rates of variable interest rate loans reflect market interest rate at short intervals, and thus their fair values are stated at book value
because of their proximity to fair value, unless there are significant changes of the borrowers’ credit conditions. Fixed interest rate loans
are stated at their fair value as calculated by discounting their cash flows, of which those with OTC interest rate are stated at fair value ascalculated by discounting their scheduled cash flow using the interest rate that would be applicable to similar new loans, and aredetermined by category and by term. Loans not with OTC interest rate are stated at fair value as calculated for each credit rating group, by
discounting their future cash flow estimated to reflect the credit risk of each such group, using market interest rate. For loans with shortterm maturity (1 year or less), book value is recorded as its fair value because of the proximity between the two.
In addition, receivables to borrowers that are Bankrupt borrowers, virtually bankrupt borrowers, or at Borrowers threatened withbankruptcy are stated at book value which are deemed to approximate their fair values on the consolidated balance sheets as of theconsolidated closing date, minus the current amount of estimated loan losses, which are estimated based upon the current values of
estimated future cash flows, collateral, guarantees, or estimated collectible amounts.
Loans undated due to their specific attributes such as loan amount being limited within the value of collateral assets, are stated atbook value which are deemed to approximate their fair value in consideration of factors including estimated payment periods andinterest rates conditions.
Liabilities
1) Deposits and 2) Negotiable certificate of deposits
For demand deposit, fair value is deemed to be the amount payable on demand at year end date (book value). For time deposits andnegotiable certificates of deposit, fair value is calculated by discounting future cash flows, using interest rates applicable to new deposits
and market interest rate, respectively. For loans with short-term maturity (1 year or less), book value is recorded as its fair value becauseof the proximity between the two.
3) Payable under securities lending transactions
As collateral related to securities lending has short-term contractual maturity (1 year or less), book value is recorded as its fair value
because of the proximity between the two.
4) Borrowed Money
The carrying amount of borrowed money with floating interest rates approximates fair value because the market rates are promptly
reflected in the floating interest rate and the credit risks of the Bank and its consolidated subsidiaries have not changed significantly after
borrowing. The fair value of borrowed money with fixed interest rates is determined by discounting future cash flows at the rate that29

would be applied for similar new contracts. The carrying amount of borrowed money with maturity of less than one year approximatesfair value because of its short maturity period.
Derivative Transaction
Derivative transactions are described in “Derivative Financial Instruments Transactions.”(Note 2)Financial instruments whose fair value is not readily determinable are as follows: These are not included in “Assets 2) Securities” of theinformation on the fair values of financial instruments.
Thousands of
U.S. dollars
2016

Millions of yen
2016

2015

Non-listed stocks Equity of subsidiaries and affiliates 
Total ¥2,563¥2,990¥5,554¥2,615¥2,706¥5,321$22,749$26,544$49,293(Note 3)
Redemption schedules for monetary claims and securities with maturity after the fiscal year-end

Due from banks Securities 
Held-to-maturity securities 
National government bonds 
Local government bonds 
Corporate bonds 
Others 
Available for sale securities withmaturity 
National government bonds 
Local government bonds 
Corporate bonds 
Others 
Loans and bills discounted 
Total Due from banks Securities 
Held-to-maturity securities 
National government bonds 
Local government bonds 
Corporate bonds 
Others 
Available for sale securities withmaturity 
National government bonds 
Local government bonds 
Corporate bonds 
Others 
Loans and bills discounted 
Total 30

Due in 1
year or lessDue from 1
year to 3 years

Millions of yen
2015
Due from 3
Due from 5
year to 5 years
year to 7 years¥109,535
255,143
11,637
10,700
188
387
361

¥—
713,526
5,349
4,100
32
735
482

¥—
482,608
4,472
3,200
—
308
964

¥—
287,380
366
—
—
4
361

¥—
183,825
1,084
—
—
—
1,084

¥—
25,048—————

243,505
104,500
50,77847,30340,923¥1,317,206¥1,681,884

708,177
251,500
118,202
153,199
185,274¥897,836¥1,611,363

478,135
132,100
123,774
68,243
154,017¥615,854¥1,098,463

287,014142,900
129,969
8,136
6,008¥334,901¥622,282

182,740
38,000124,754
9,657
10,328¥366,308¥550,133

25,048———25,048¥1,175,191¥1,200,240

Due in 1
year or lessDue from 1
year to 3 years

Millions of yen
2016
Due from 3
Due from 5
year to 5 years
year to 7 years

Due from 7
year to 10 years¥276,715
277,939
5,106
4,100
32
612
361

¥—
437,124
2,657
1,500
—
675
482

¥—
334,631
2,952
1,700
—
287
964

¥—
212,126
361
—
—
—
361

¥—
138,616
1,206
—
—
—
1,206

¥—
2,000
—
—
—
—
—

272,832
163,500
59,37948,0701,882¥1,338,961¥1,893,615

434,467
130,000
141,729
149,204
13,532¥914,303¥1,351,428

331,678
149,500
136,142
43,7782,257¥584,334¥918,965

211,764
103,500
98,0398,608
1,615¥359,714¥571,840

137,410
2,000
119,731
15,352326¥395,065¥533,682

2,000
2,000
—
—
—
¥1,321,231¥1,323,231

Due from 7
year to 10 years

Due after
10 years

Due after
10 yearsDue from banks Securities 
Held-to-maturity securities 
National government bonds 
Local government bonds 
Corporate bonds 
Others 
Available for sale securities withmaturity 
National government bonds 
Local government bonds 
Corporate bonds 
Others 
Loans and bills discounted 
Total Due in 1
year or lessDue from 1
year to 3 years

Thousands of U.S. dollars
2016
Due from 3
Due from 5
year to 5 years
year to 7 years$2,455,760$2,466,622
45,321
36,386
289
5,435
3,211

—
$3,879,346
23,586
13,312
0
5,992
4,282

—
$2,969,748
26,202
15,087
—
2,552
8,563

2,421,301
1,451,012
526,975
426,607
16,707$11,882,866$16,805,248

3,855,760
1,153,710
1,257,804
1,324,145
120,101$8,114,158$11,993,504

2,943,546
1,326,766
1,208,226
388,516
20,038$5,185,787$8,155,535

Due from 7
year to 10 years

Due after
10 years—$1,882,556
3,211
—
—
—
3,211

—
$1,230,180
10,704———
10,704—$17,749—————

1,879,345
918,530
870,074
76,40014,341$3,192,351$5,074,907

1,219,476
17,7491,062,584
136,2462,897$3,506,086$4,736,266

17,74917,749———$11,725,516$11,743,265

Millions of yen
2015
Due from 3
Due from 5
year to 5 years
year to 7 years

Due from 7
year to 10 years

Due after
10 years(Note 4)
Repayment schedules for deposits and other interest-bearing debt after the fiscal year-end

Due in 1
year or less

Deposit 
Negotiable certificate of deposit Payable under securities lendingtransaction 
Borrowed money Total ¥5,594,465
142,855¥460,223
100¥44,198—¥5,675—¥7,840—¥——262,906
182,518¥6,182,745—
3,444¥463,767—
1,578¥45,776—
106¥5,781——¥7,840——¥—Millions of yen
2016
Due from 3
Due from 5
year to 5 years
year to 7 years

Due from 7
year to 10 years

Due in 1
year or less

Deposit 
Negotiable certificate of deposit Payable under securities lendingtransaction 
Borrowed money Total Deposit 
Negotiable certificate of deposit Payable under securities lendingtransaction 
Borrowed money Total Due from 1
year to 3 years

Due from 1
year to 3 years

Due after
10 years¥5,756,005
136,209¥475,972—¥38,630—¥5,915—¥8,312—¥——

270,574
253,543¥6,416,332—
3,359¥479,332—
847¥39,477—
14¥5,929——¥8,312——¥—Thousands of U.S. dollars
2016
Due from 3
Due from 5
year to 5 years
year to 7 years

Due from 7
year to 10 years

Due in 1
year or lessDue from 1
year to 3 years

Due after
10 years$51,082,761
1,208,815$4,224,106—$342,831—$52,502—$73,768———2,401,267
2,250,117$56,942,960—
29,817$4,253,923—
7,520$350,351—
124$52,626——$73,768———31

9. Securities(1) Market Value of Securities
Market value and valuation differences of securities as of March 31, 2015 and 2016 and other related information were as follows.
Securities below include trading securities classified as trading account securities, negotiable certificates of deposits classified as Cashand due from banks. The same definition was applied in the following tables (a) to (g).
(a) Trading account securities
Thousands of
U.S. dollars

Millions of yen

2016

2015
Valuation gain included in income for the year 

2016
¥7

(¥2)

$69

(b) Held-to-maturity bonds
The Bank’s and its consolidated subsidiaries’ investments in held-to-maturity bonds as of March 31, 2015 and 2016 were summarized asfollows.
Millions of yen
2015
Market Value

Carrying Value

Securities of which market
value exceed carrying value

Securities of which market
value does not exceed
carrying value

National government bonds 
Local government bonds 
Corporate bonds 
Other securities 
sub total 
National government bonds 
Local government bonds 
Corporate bonds 
Other securities 
sub total 
total ¥18,010
184
1,395
2,888
¥22,478
¥—
37
0
6,228
¥6,265¥28,744

Millions of yen
2016
Market Value

Carrying Value

Securities of which market
value exceed carrying value

Securities of which market
value does not exceed
carrying value

National government bonds 
Local government bonds 
Corporate bonds 
Other securities 
sub total 
National government bonds 
Local government bonds 
Corporate bonds 
Other securities 
sub total 
total ¥6,504
20
1,456
2,671
¥10,653
¥800
11
80
5,858
¥6,750¥17,403

Carrying Value

Securities of which market
value exceed carrying value

Securities of which market
value does not exceed
carrying value

32

National government bonds 
Local government bonds 
Corporate bonds 
Other securities 
sub total 
National government bonds 
Local government bonds 
Corporate bonds 
Other securities 
sub total 
total ¥18,030
186
1,411
3,032
¥22,661
¥—
37
0
6,225
¥6,262¥28,923¥6,538
21
1,476
2,779
¥10,815
¥800
11
79
5,845
¥6,737¥17,552

Thousands of U.S. dollars
2016
Market Value$57,725
184
12,93023,711$94,550$7,100
105
709
51,990$59,904$154,454$58,024
187
13,10024,669$95,980$7,100
105
708
51,881$59,794$155,774

Differences

¥20
2
16
143
¥182
¥—
—
—
(3)
(¥3)
¥179

Differences

¥33
0
19
107
¥161
¥(0)
—
(0)
(12)
(¥12)
¥148

Differences

$299
3
170
958
$1,430
($ 0)
—
(1)
(109)
($110)$1,320(c) Available for sale securities

Carrying Value

Securities of which market
value exceed cost

Securities of which market
value does not exceed cost

Stocks 
Bonds National government bonds 
Local government bonds 
Corporate bonds 
Other securities Foreign bonds 
Other securities 
sub total 
Stocks 
Bonds National government bonds 
Local government bonds 
Corporate bonds 
Other securities Foreign bonds 
Other securities 
sub total 
total ¥208,367
1,502,218
677,165
563,239
261,814527,641
397,574
130,067¥2,238,228¥3,695
38,156
9,062
1,792
27,301
13,28011,1692,111¥55,132¥2,293,360

Carrying Value

Securities of which market
value exceed cost

Securities of which market
value does not exceed cost

Stocks 
Bonds National government bonds 
Local government bonds 
Corporate bonds 
Other securities Foreign bonds 
Other securities 
sub total 
Stocks 
Bonds National government bonds 
Local government bonds 
Corporate bonds 
Other securities Foreign bonds 
Other securities 
sub total 
total ¥168,880
1,398,709
567,265
572,177
259,267
497,901
383,189
114,712¥2,065,492¥10,504
9,422
—
799
8,623
30,721
26,5564,165¥50,648¥2,116,141

Millions of yen
2015
Cost

¥85,587
1,464,164
659,420545,674
259,069
487,331
391,071
96,259¥2,037,083¥3,849
38,2779,069
1,800
27,40813,304
11,1782,126¥55,431¥2,092,515
Millions of yen
2016
Cost

¥72,442
1,360,773
550,285554,220
256,267
468,686
376,561
92,124¥1,901,901¥12,056
9,488
—
800
8,688
31,08026,7284,351¥52,625¥1,954,527

Differences¥122,779
38,054
17,744
17,564
2,745
40,3106,502
33,807¥201,144(¥154)
(121)
(6)
(7)
(106)
(23)
(8)
(14)
(¥298)¥200,845

Differences¥96,438
37,936
16,97917,9563,000
29,215
6,627
22,587¥163,590(¥1,551)
(65)
—
(1)
(64)
(359)
(172)
(186)
(¥1,976)¥161,613

33

Carrying Value

Securities of which market
value exceed cost

Securities of which market
value does not exceed cost

Stocks 
Bonds National government bonds 
Local government bonds 
Corporate bonds 
Other securities Foreign bonds 
Other securities 
sub total 
Stocks 
Bonds National government bonds 
Local government bonds 
Corporate bonds 
Other securities Foreign bonds 
Other securities 
sub total 
total Thousands of U.S. dollars
2016
Cost

$1,498,764
12,413,115
5,034,303
5,077,893
2,300,919
4,418,721
3,400,684
1,018,037$18,330,600$93,225
83,625—
7,091
76,534
272,644
235,678
36,966$449,494$18,780,094$642,905
12,076,437
4,883,615
4,918,532
2,274,290
4,159,444
3,341,869
817,575$16,878,786$106,998
84,205—
7,100
77,105
275,833
237,211
38,622$467,036$17,345,822

Differences$855,859
336,678
150,688
159,361
26,629259,277
58,815200,462$1,451,814($13,773)
(580)
—
(9)
(571)
(3,189)(1,533)(1,656)($17,542)$1,434,272(d) Held-to-maturity bonds sold ............................ Nil(e) Available for sale securities soldMillions of yen
2015
Proceeds fromsales

Stocks 
Bonds National government bonds 
Local government bonds 
Corporate bonds 
Other securities Foreign bonds 
Other securities total ¥2,980
99,17686,8383,125
9,213
35,02133,864
1,157¥137,179

Gains

Losses¥1,487
592
505
25
62
395
53
341
¥2,475

¥140
0
0
—
—
126
126
—
¥268

Millions of yen
2016
Proceeds fromsales

Stocks 
Bonds National government bonds 
Local government bonds 
Corporate bonds 
Other securities Foreign bonds 
Other securities total 34

¥8,457
51,96846,263400
5,304
57,60356,432
1,171¥118,029

Gains¥3,397
296
290
0
6
739
311
427
¥4,434Losses

¥109
0
—
—
0
136
136
0
¥246

Thousands of U.S. dollars
2016
Proceeds fromsales

Stocks 
Bonds National government bonds 
Local government bonds 
Corporate bonds 
Other securities Foreign bonds 
Other securities total $75,055
461,203
410,578
3,551
47,074
511,217500,819
10,398$1,047,475

Gains$30,155
2,632
2,574
1
57
6,563
2,767
3,796
$39,350

Losses

$974
5
—
—
5
1,209
1,208
1
$2,188(f) Securities whose holding purpose was reclassified ............................ Nil(g) Securities written down for the purpose of impairment adjustment
When fair values of other securities for which fair values are determinable have reduced significantly from, and are unlikely to restore to
the level of their acquisition costs, their carrying values are reduced to fair values, with valuation differences treated as losses for theperiod (hereinafter referred to as “Impairment Adjustment”).
There was no Impairment Adjustment during the year ended March 31, 2015.
The amount of write-down during the year ended March 31, 2016 for the purpose of Impairment Adjustment was ¥1,440 million,
including ¥1,440 million in stocks.
The criteria to determine whether there was ”a significant reduction” in fair values are included in self-assessment criteria. Impairment
Adjustment is applied to all stocks with fair values having reduced 50% or more from their acquisition costs, while for stocks with fairvalues having reduced 30% or more but less than 50% from their acquisition costs, Impairment Adjustment is subject to case-by-casejudgment of the likelihood of recovery in fair values, based on the share price trend for certain period before the benchmark date as wellas financial conditions of the issuing entity.
(2) Investments in non-consolidated subsidiaries and affiliates
Securities included investments in non-consolidated subsidiaries and affiliates of ¥2,706 million and ¥2,990 million at March 31, 2015
and 2016, respectively.
(3) Guarantee obligations for bonds in private placement
Guarantee obligations for bonds in private placement (defined in Article 2 (3) of Financial Instruments and Exchange Act) included inJapanese Corporate Bonds were ¥24,466 million and ¥32,136 million (U.S.$285,205 thousand) as of March 31, 2015 and 2016,
respectively.

35

10. Money Held in Trust
Money Held in Trust for Trading Purposes
Thousands of
U.S. dollars
2016

Millions of yen

2016

2015

Consolidated Balance Sheet Amount 
Unrealized Gains Included in the Consolidated Statements ofIncome 

5,000

4,967

44,087

62

(86)

(769)

Nil (as of March, 2015 and 2016)
Nil (as of March, 2015 and 2016)

Money Held in Trust for Holding Purposes
Money Held in Trust for Other Purposes

11. Valuation Difference on Available-for-sale Securities
Valuation difference on available-for-sale Securities as of March 31, 2015 and 2016 consisted of the following
Thousands of
U.S. dollars
2016

Millions of yen
2015

Valuation Difference 
Securities Available-for-Sale Deferred Tax Liabilities 
Valuation Difference, Net of Taxes 
Amount Attributable to Non-controlling interests 
Net Unrealized Gains on Securities Available-for-Sale Owned by
Affiliates, which is Attributable to the Parent 
Valuation Difference on Available-for-sale Securities 

200,845
200,845
64,241
136,60417

2016
161,613
161,613
49,106
112,5077

1,434,271
1,434,271
435,802
998,469
68

196

245

2,179

136,783

112,745

1,000,580

12. Derivative Financial Instruments Transactions(1) Derivatives to which hedge accounting is not appliedWith respects to the derivatives to which hedge accounting is not applied, contract amount or notional amount set out in the contract,fair value, valuation gain or loss and calculation method of such fair value, by class of underlying asset at the end of the year are as
described below. The whole contract amounts and other amounts shown here are not indicative of the market risks associated with thesederivative transactions.
(a)Interest Rate Related Transactions
Millions of yen
2015

As of March 31,
Interest rate futures:
Written 
Purchased 

As of March 31,
Interest rate futures:
Written 
Purchased 

36Contract
amounts¥——¥—

Due after
1 year

¥—
—
¥—

Fair
Value

¥—
—
¥—

Valuation
profit¥——¥—Contract
amounts¥——¥—

Contract
amounts

$—
—
$—

2016
Due afterFair
1 year
Value

¥—
—
¥—

Valuation
profit

¥—
—
¥—

¥—
—
¥—

Thousands of U.S. dollars
2016
Due afterFair
1 yearValue

Valuation
profit

$—
—
$—

$—
—
$—

$—
—
$—

Millions of yen

As of March 31,
Interest rate swaps:
Receipt fixed
payments floating 
Receipt floating
payments fixed Contract
amounts2015
Due after
1 yearFair
Value

Valuation
profitContract
amounts

2016
Due afterFair
1 yearValue

Valuation
profit¥48,103¥42,303

¥288

¥333

¥50,337¥47,560

¥618

¥636

48,103¥96,206

42,303¥84,606

(130)
¥158

(130)
¥202

50,337¥100,674

47,560¥95,120

(402)
¥216

(402)
¥233

Contract
amounts

As of March 31,
Interest rate swaps:
Receipt fixed
payments floating 
Receipt floating
payments fixed Thousands of U.S. dollars
2016
Due afterFair
1 yearValue

Valuation
profit$446,727$422,082$5,493$5,645446,727$893,454

422,082$844,164(3,576)$1,917(3,576)$2,069

Millions of yen

For the years ended
March 31,
Interest cap trading:
Written 
Purchased Contract
amounts2015
Due after
1 year

—
—
—

¥—
—
¥—

Fair
Value

¥—
—
¥—

Valuation
profitContract
amounts

¥—
—
¥—

¥—
—
¥—

Contract
amounts

For the year ended March 31,
Interest cap trading:
Written 
Purchased 

$—
—
$—

2016
Due afterFair
1 year
Value

¥—
—
¥—

Valuation
profit

¥—
—
¥—

¥—
—
¥—

Thousands of U.S. dollars
2016
Due afterFair
1 yearValue

Valuation
profit

$—
—
$—

$—
—
$—

$—
—
$—

1. Transactions above are stated at the fair value and the related valuation gain or loss is reported in the consolidated statements ofincomes.
2. Calculation of fair value
The fair values of transactions listed on exchanges are based on the last quoted market price at the Tokyo Financial Exchange Inc. orothers.
The fair values of over-the-counter transactions are based on the discounted present value, option pricing models or others.
(b) Foreign Exchange Related Transactions
Millions of yen
2015

As of March 31,
Currency swaps Contract
amounts¥66,073

Due after
1 year¥59,798

Fair
Value

¥122

Valuation
profit¥122

Contract
amounts¥81,235

As of March 31,

Contract
amounts

Currency swaps $720,939

2016
Due afterFair
1 yearValue¥61,439

Valuation
profit¥97¥153

Thousands of U.S. dollars
2016
Due afterFair
1 yearValue

Valuation
profit$545,252$864$1,36337

Millions of yen
2016
Due afterFair
1 yearValue

2015

For the years ended
March 31,
Forward exchange
contracts:
Written 
Purchased Contract
amounts

Currency options:
Written 
Purchased 

Due after
1 yearFair
Value

Valuation
profitContract
amounts

Valuation
profit¥6,033
5,357¥11,391

¥—
—
¥—

¥(48)
55
¥6

¥(48)
55
¥6

¥6,583
5,613¥12,196

¥—
—
¥—

¥225
(205)
¥20

¥225
(205)
¥20

¥29,347
29,347¥58,695¥22,638
22,638¥45,277¥(2,050)
2,050
¥—

¥528
(194)
¥334

¥50,621
50,621¥101,242¥41,374
41,374¥82,749¥(2,946)
2,946
¥—

¥865
(392)
¥472

Contract
amounts

For the year ended March 31,
Forward exchange contracts:
Written 
Purchased Currency options:
Written 
Purchased 

Thousands of U.S. dollars
2016
Due afterFair
1 yearValue

Valuation
profit$58,423
49,821$720,939$——$—$2,004(1,821)$183$2,004(1,821)$183$449,250
449,250$898,500$367,190
367,190$734,380$(26,150)
26,150$—$7,682(3,485)$4,197

1. Transactions above are stated at the fair value and the related valuation gain or loss is reported in the consolidated statements ofincomes.
2. Calculations of fair value
The fair values are based on factors such as the discounted present value.
(c) Equity Related Transactions ............ Nil(d) Bond Related Transactions ............. Nil(e) Commodity Related Transactions . Nil(f) Credit Derivatives ............................. Nil .
(2) Derivatives to which hedge accounting is appliedWith respects to the derivatives to which hedge accounting is applied, contract amount or notional amount set out in the contract andthe fair value at the end of the year along with the calculation method of such fair value, by class of underlying asset and by method ofhedge accounting, are as follows. The whole contract amounts and other amounts shown here are not indicative of the market risks
associated with these derivative transactions.
(a)Interest Rate Related Transactions
Millions of yen

As of March 31,
Standard treatment:

As of March 31,
Standard treatment:

38

Interest rate swaps: Interest rate futures: Interest rate options: 
Others 

Hedged
items
—
—
—
—

Hedgeditems

Interest rate swaps: Interest rate futures: Interest rate options: 
Others ————Contract
amounts
¥—
—
—
—
¥—

2015
Due after
1 year
¥—
—
—
—
¥—

Fair
Value
¥—
—
—
—
¥—

Contract
amounts
¥—
—
—
—
¥—

2016
Due after
1 year
¥—
—
—
—
¥—

Fair
Value
¥—
—
—
—
¥—

Thousands of U.S. dollars
2016
Contract
Due after
Fair
amounts
1 year
Value

$—
—
—
—
$—

$—
—
—
—
$—

$—
—
—
—
$—

Millions of yen

As of March 31,
Exceptional treatment:

Hedgeditems

Interest rate swaps:
Receipt fixed
payments floating 
Receipt floating
payments fixed 
Total Loan

Fair ValueContract
amounts¥22,8682016
Due after
1 year¥20,410

—

*note

—

—

*note

18,847————22,868——20,410————Contract
amounts¥23,0432015
Due after
1 year¥18,847—
23,043
——

Fair
Value

(Note) As the swaps that qualify for exceptional treatment for interest rate swaps are treated as one combined with hedged loans, fairvalue of the former is included in that of the latter in the”Financial Instruments”.

As of March 31,
Exceptional treatment:Interest rate swaps:
Receipt fixed
payments floating 
Receipt floating
payments fixed Hedgeditems

Thousands of U.S. dollars
2016
Contract
Due after
Fair
amounts
1 yearValue

Loan$202,954$181,137———

202,954$202,954

181,137$181,137———

1. The Bank adopted mainly the standard treatment of the “Treatment of Accounting and Auditing of Application of AccountingStandard for Financial Instruments in the Banking Industry”(JICPA Industry Audit Committee Report No. 24 issued by the JICPA on
February 13, 2002.). Under the standard treatment of the Report No. 24, the Bank applies the deferred method of hedge accounting.
2. Calculation of fair value
The fair values of transactions listed on exchanges are based on the last quoted market price at the Tokyo Financial Exchange Inc. orothers.
The fair values of over-the-counter transactions are based on the discounted present value, option pricing models or others.
(b) Foreign Exchange Related Transactions
Millions of yen

As of March 31,
Standard treatment:

Deferred method:

As of March 31,
Standard treatment:

Deferred method:

Hedgeditems

Currency swaps: Forward exchange
contracts: Currency swap: Forward exchange
contracts: 
Total Currency swaps: Forward exchange
contracts: Currency swap: Forward exchange
contracts:
Total Call loans, Loans,
Bonds and Foreignexchange—

Contract
amounts¥32,648¥126,769

2015
Due after
1 year
¥—
—

—
—

—
—

——

——

Fair
Contract
Value
amounts(¥3,887)¥70,162(¥903)¥2,0742016
Due after
1 year¥28,170
¥—

Fair
Value
¥3,068
¥28

—
—

—
—

—
—

—
—

(¥4,790)————¥3,097—

Call loans, Loans,
Bonds and Foreignexchange

Thousands of U.S. dollars
2016
Contract
Due after
Fair
amounts
1 yearValue$622,666 $250,000$27,234—$ 252$ 18,408

—
—

—

—
—

—
—

—

$27,486

—
$

—

$

1. The Bank adopted mainly the standard treatment of the “Treatment of Accounting and Auditing Relating to the Accounting of Foreign
Currency Transactions in the Banking Industry”(JICPA Industry Audit Committee Report No. 25 issued by the JICPA on July 29,
2002.). Under the standard treatment of the Report No. 25, the Bank applies the deferred method of hedge accounting.
2. Calculation of fair value
The fair values are based on the discounted present value or others.
39(c) Equity Related Transactions ............... Nil(d) Bond Related Transactions ................ Nil(e) Equity Related Transactions ............... Nil (as of March 31, 2016)(f) Bond Related Transactions ................. Nil (as of March 31, 2016)

13. Comprehensive income
Amounts of recycling and tax effects on other comprehensive income
Thousands of
U.S. dollars
2016

Millions of yen
2016

2015
Net unrealized gains (losses) on securities, net of tax:

Items recognized during the year
Amounts of recycling
Before tax effect adjustment
Tax effects
Net unrealized gains (losses) on securities, net of tax
Deferred hedge gains (losses):
Items recognized during the year
Amounts of recycling
Before tax effect adjustment
Tax effects
Deferred hedge gains (losses)
Revaluation reserve for land
Items recognized during the year
Amounts of recycling
Before tax effect adjustment
Tax effects
Revaluation reserve for land
Foreign currency translation adjustments:
Items recognized during the year
Amounts of recycling
Before tax effect adjustment
Tax effects
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Items recognized during the year
Amounts of recycling
Before tax effect adjustment
Tax effects
Remeasurements of defined benefit plans
Share of other comprehensive income of entities and affiliates
accounted for using the equity method
Items recognized during the year
Amounts of recycling
Before tax effect adjustment
Tax effects
Share of other comprehensive income of entities andaffiliates accounted for using the equity method
Total other comprehensive income

67,045(3,573)63,472(15,708)
47,763(¥32,692)(6,539)(39,231)
15,135(24,096)($290,132)(58,038)(348,170)
134,319(213,851)

(504)
599
95
(34)
60

(651)
466
(184)
59
(125)

(5,780)4,143(1,637)525(1,112)

—
—
—
879
879

—
—
—
423
423

—
—
—
3,762
3,762

587
—
587
—
587

2
—
2
—
2

20
—
20
—
20

3,541
640
4,181
(1,549)2,631(15,872)429(15,443)
4,676(10,766)(140,862)
3,809(137,053)
41,502(95,551)

133
—
133
—

49
—
49
—

435
—
435
—

133

49

435

¥52,056(¥34,513)($306,295)

14. Property, plant and equipment
Depreciation was computed using the declining-balance method. Property, plant and equipment as of March 31,2015 and 2016 wereexpressed net of the following accumulated depreciation.
Thousands of U.S.
Millions of yen
dollars
2015
2016
2016
¥64,670¥65,194$578,577
Deferred gain on real estate deductible for tax purposes amounted to ¥3,937 million and ¥3,937 million on March 31,2015 and 2016,
respectively.
40

15. Assets Pledged
Assets pledged as collateral as of March 31,2015 and 2016 were as follows:

Millions of yen
2016

2015
Securities¥665,596¥699,978

Thousands of
U.S. dollars
2016$6,212,093

Liabilities related to the above pledged assets as of March 31, 2015 and 2016 were as follows:
Millions of yen
2016

2015

Deposits
Payables under securities lending transactions
Borrowed money
Other¥133,148
262,906
180,352221¥  36,994
270,574
251,436
119

Thousands of
U.S. dollars
2016$  328,317
2,401,267
2,231,424
1,064

In addition, the following was pledged as collateral for settlements of exchange or margins for futures transactions as of March, 2015 and2016.
Millions of yen
2016

2015

Securities
Other¥82,201
49¥36,785229

Thousands of
U.S. dollars
2016$326,462
2,034

Guarantee deposits of ¥1,580 million were included in Other Assets as of March 31, 2016.

16. Revaluation Reserve for Land
Pursuant to the Law concerning Revaluation of Premises, premises used for business operations have been revalued as of March 31,
1998. Premises revaluation gain was included in Net Assets, net of income taxes.
Date of the revaluation: March 31,1998
Revaluation method stipulated in paragraph 3,Article 3 of the Law concerning Revaluation of Premises Calculated by applying
reasonable adjustments to the roadside values such as adjustments for the shape of the land, based on Item 4, Article 2 of the
Enforcement Ordinance of the Law Concerning Land Revaluation (Enforcement Ordinance No. 119, effective March 31 1998).
The difference between the revalued carrying amount and the fair value of premises revalued pursuant to Article 10 of the Law was¥20,638 million and ¥20,430 million (U.S.$181,311 thousand) as of March 31, 2015 and 2016,respectively.

17. Retirements benefits
Retirement benefit plans
Retirement benefit plans adopted by the Bank and its consolidated subsidiaries
The Bank and its domestic consolidated subsidiaries have established defined benefit plans comprising a retirement lump-sum payment
plan and defined benefit welfare pension plan (funded type), as well as defined contribution plan namely defined contribution pension
plan. In addition, premium retirement benefits may be payable in certain circumstance at an employees’ retirement. The Bank has aretirement benefit trust in place.
The changes in the retirement benefit obligation during the year ended March 31, 2015 and 2016 were as follows:
Millions of yen
2015

Balance at the beginning of the year 
Cumulative effect of changes in accounting policies 
Restated balance Service cost Interest cost 
Actuarial loss Retirement benefits paid 
Prior service cost Other Balance at the end of the year ¥65,281
8,781
74,062
1,702
1,074
4,650
(3,018)——¥78,472

2016¥78,472—
78,472
1,863
892
11,348(2,800)——¥89,776

Thousands of
U.S. dollars
2016$696,415—
696,415
16,5397,923
100,714(24,853)——$796,738(Note)
Consolidated subsidiaries use the simplified method in calculating retirement benefit obligations.
41

The changes in plan assets during the year ended March 31, 2015 and 2016 were as follows:
Millions of yen
2016

2015

Balance at the beginning of the year 
Expected return on plan assets 
Actuarial loss Contributions by the Bank 
Retirement benefits paid 
Other Balance at the end of the year 

Thousands of
U.S. dollars
2016¥77,178
1,067(4,523)—(1,835)—¥71,886¥69,570
1,193
8,191
—
(1,777)—¥77,178$684,933
9,472(40,147)—(16,290)—$637,968(Note)The Bank’s contributions are funded by the retirement benefit trust.
Reconciliation of ending balances of retirement benefit obligations and plan assets, and net defined liability and net defined asset
recorded on the consolidated balance sheets was as follows:
Thousands ofMillions of yen
U.S. dollars
2015
2016
2016
Funded retirement benefit obligation ¥78,472¥89,776$796,738(77,178)(71,886)(637,968)
Plan assets at fair value 
1,293
17,890158,770———
Unfunded retirement benefit obligation ¥1,293¥17,890$158,770
Net liability (asset) for retirement benefits in the balance sheets 
Net defined liability 
Net defined asset 
Net liability (asset) for retirement benefits in the balance sheets ¥17,890—¥17,890¥1,297(3)¥1,293$158,770—$158,770

Components of retirement benefit expense for the year ended March 31, 2015 and 2016 were as follows:
Millions of yen
2015

Service cost Interest cost Expected return on plan assets 
Amortization of actuarial loss Amortization of prior service costs 
Other (extra payment of premium retirement benefits, etc.) Retirement benefit expense associated with defined benefit plans ¥1,702
1,074(1,193)640—
23¥2,247

2016

Thousands of
U.S. dollars
2016¥1,863892(1,067)429—
20¥2,138$16,539
7,923(9,472)
3,809—
181$18,980(Note)
Retirement benefit expense at consolidated subsidiaries using simplified method is collectively included in “Service cost.”
Remeasurements of defined benefit plans on other comprehensive income (before tax effect adjustment) were as follows:
Thousands ofMillions of yen
U.S. dollars
2015
2016
2016
Prior service cost ¥    —¥—$
—
Actuarial gain (4,181)
15,443137,053———
Other ¥(4,181)¥15,443$137,053
Total 42

Remeasurements of defined benefit plans were as follows:
Thousands of
U.S. dollars
2016

Millions of yen
2016

2015

Unrecognized prior service cost 
Unrecognized actuarial loss 
Other Total 

¥—
2,105
—
¥2,105¥—17,549—¥17,549$

—155,743—$155,743

The fair value of plan assets, by major category, as a percentage of total plan assets as of March 31, 2015 and 2016 were as follows:
2016

2015

Bonds Stock Life insurance company general accounts Cash and due from banks 
Other Total 

30.2%
49.3%
17.4%
0.1%
3.0%
100.0%

30.5%
44.4%
22.6%
0.1%
2.4%
100.0%

The assumptions used in accounting for the above plans were as follows:
2016

2015

Discount rates
Welfare pension plan Retirement lump-sum payment plan 
Expected long-term return on plan assets
Welfare pension fund Retirement benefit trust 
Other assumptions
Expected rate of salary raises 

1.5%
1.0%

0.5%
0.2%

1.5%
2.1%

1.2%
1.7%

4.2%

4.2%

Defined contribution plan
Amount of contributions required for defined contribution plans at consolidated subsidiaries as of March 31, 2015 and 2016 is ¥11
million and ¥11 million (U.S.$101 thousand), respectively.

18. Cash and Cash Equivalents
The reconciliation of cash and due from banks in the consolidated balance sheets to the cash and cash equivalents as of March 31 2015
and 2016 was as follows:¥164,918¥335,643

Thousands of U.S.
dollars
2016$2,978,735(3,110)(11,492)(101,988)¥161,807¥324,151$2,876,747

Millions of yen
2016

2015

Cash and Due from Banks Interest-bearing Deposits included in Due from Banks(excluding Due from BOJ) 
Cash and Cash Equivalents 

19. Other Expenses
Other expenses for the years ended March 31, 2015 and 2016 include ¥187 million and ¥408 million (U.S.$3,628 thousand), respectively,of write-down of loans, ¥140 million and ¥108 million (U.S.$960 thousand), respectively, of losses on sales of stocks and other securities,¥46 million and ¥1,444 million (U.S.$12,824 thousand), respectively, of losses on impairment of stocks and other securities and ¥355
million and ¥409 million (U.S.$3,630 thousand), respectively, of losses on loans sold.

43

20. Lease Transactions
a. Lessee
Operating leases
Total future lease payments under non-cancelable operating leases at March 31, 2015 and 2016 are as follows:

¥77
61
¥139

Thousands of
U.S. dollars
2016
$691
546
$1,237¥38,556
4,785(4,692)¥38,649

Thousands of
U.S. dollars
2016$342,174
42,472(41,641)$343,005

Millions of yen
2016

2015

With one year
Over one year
Total

¥103
126
¥229

b. Lessor
Leased investment asset at March 31, 2015 and 2016 were summarized as follows:

Millions of yen
2015

Lease receivables estimated residual value Interest income 
Total ¥38,264
4,463(4,672)¥38,055

2016

The lease receivable amount at March 31, 2015 and 2016, and the amount of lease fees receivable on investment assets, which is scheduled
to be collected after the fiscal year-end, were summarized as follows:
Lease receivables
Millions of yen
2015
¥846
802
722
547
273
265

within 1 year
over 1 year and within 2 years over 2 years and within 3 years over 3 years and within 4 years over 4 years and within 5 years over 5 years within 1 year
over 1 year and within 2 years over 2 years and within 3 years over 3 years and within 4 years over 4 years and within 5 years over 5 years 

44Lease receivables
Thousands ofMillions of yen
U.S. dollars
2016
2016
¥1,327$11,780
1,241
11,015
1,067
9,477
787
6,986
387
3,443
479
4,254

Lease investment assets
Millions of yen
2015¥11,456
9,372
7,200
4,942
2,759
2,531

Lease investment assets
Thousands ofMillions of yen
U.S. dollars
2016
2016

¥11,580
9,439
7,173
4,954
2,740
2,668

$102,771
83,771
63,662
43,96824,32023,683

21. Income Taxes
Income taxes applicable to the Bank and consolidated subsidiaries include corporation tax, inhabitants’ tax and enterprise tax.
Income taxes of the foreign consolidated subsidiaries are based generally on the tax rates applicable in their countries of incorporation.
Deferred tax assets and liabilities as of March 31, 2015 and 2016 consisted of:Thousands of
U.S. dollars
2016

Millions of yen
2016

2015

Deferred tax assets:
Allowance for loan losses Provision for retirement benefits 
Devaluation loss on securities 
Depreciation Provision for point card certificates 
Other Subtotal 
Valuation allowance 
Total: Deferred tax assets Deferred tax liabilities:
Net unrealized gains on securities available for sale Retirement benefit trust 
Other Total: Deferred tax liabilities 
Net: Deferred tax assets (liabilities) ¥11,347
4,890
727
637
341
4,741
22,686(4,984)
17,701¥8,920
4,720
621
528
327
9,422
24,540(4,159)20,381$79,164
41,897
5,517
4,689
2,904
83,621
217,792(36,913)
180,879(64,241)(1,927)(467)(66,635)¥(48,933)(49,106)(1,956)(466)(51,529)¥(31,148)(435,802)(17,364)(4,142)(457,308)$(276,429)

The reconciliation between the Japanese statutory tax rate and the Bank’s effective tax rate for the year ended March 31, 2015 and 2016
Notes are omitted since the difference between the Japanese statutory tax rate and the actual effective tax rate after applying tax effectaccounting is equal to or less than 5% of the Japanese statutory tax rate.
Revisions to the amount of deferred tax assets and deferred tax liabilities due to changes in income tax rates
The “Act for Partial Revision of the Income Tax Act, etc.” (Act No. 15 of 2016) and the “Act for Partial Revision of the Local Tax Act,etc.” (Act No. 13 of 2016) were enacted at the Diet on March 29, 2016, and as a result, corporation tax rates, etc. has been reduced fromthe fiscal year commencing on or after April 1, 2016.
Following this change, the statutory tax rate used for the calculation of deferred tax assets and deferred tax liabilities has been changed
from 32.8% for the year ended March 31, 2015 to 30.7% for the temporary differences expected to be settled in the fiscal years
commencing on April 1, 2016 and 2017, and to 30.5% for the temporary differences expected to be settled in the fiscal year commencing
on April 1, 2018, respectively. As a result, deferred tax assets decreased by ¥717 million (U.S.$ 6,364 thousand), deferred tax liabilities
decreased by ¥2,437 million (U.S.$ 21,635 thousand), valuation difference on available-for-sale securities increased by ¥2,586 million(U.S.$ 22,953 thousand) and income taxes-deferred increased by ¥584 million (U.S.$ 5,190 thousand), respectively. Deferred tax
liabilities by land revaluation decreased by ¥423 million (U.S.$ 3,762 thousand) and revaluation reserve for land increased by the sameamount.

22. Impairment loss of fixed assets
Thousands of
U.S. dollars
2016

Millions of yen
Area
Gunma Prefecture

OthersPrincipal purpose of use
Branch Premises 
Idle Assets 
Branch Premises 
Idle Assets 

2016

2015

¥ 6
—
¥24
0
¥32

¥91
—
¥—
—
¥91

$814
—
$ —
—
$814

45

23. Segment Informationa. Segment information by category of business
Segment information by category of business for the years ended or as of March 31,2015 and 2016 is summarized as follows:Year ended or as of March 31, 2015

Total income generated from businesses with
External customers Internal units 
Segment profit 
Segment assets 
Segment liabilities 
OthersDepreciation
Interest and dividend income
Interest expenses
Equity in earnings of unconsolidated
subsidiaries and associated companies
Extraordinary profit(Gain on negative goodwill)
Extraordinary loss
(Loss on disposal of noncurrent assets)(Impairment loss of fixed assets)
Tax
Investment of unconsolidated subsidiaries
and associated companies
Increase of property, plant and equipment
and intangible assets

Year ended or as of March 31, 2016

Total income generated from businesses with
External customers Internal units 
Segment profit 
Segment assets 
Segment liabilities 
OthersDepreciation
Interest and dividend income
Interest expenses
Equity in earnings of unconsolidated
subsidiaries and associated companies
Extraordinary profit(Gain on disposal of noncurrent assets)
Extraordinary loss
(Loss on disposal of noncurrent assets)(Impairment loss of fixed assets)
Tax
Investment of unconsolidated subsidiaries
and associated companies
Increase of property, plant and equipment
and intangible assets

46

Banking

Lease

Millions of yen
Sub total

OthersTotal¥106,901
351¥107,252¥34,299¥7,525,785¥7,015,027¥19,892
475¥20,367¥1,187¥60,448¥50,035¥126,793
826¥127,620¥35,486¥7,586,233¥7,065,063¥3,4731,129¥4,603¥3,598¥23,786¥14,739¥130,267
1,956¥132,224¥39,084¥7,610,019¥7,079,802¥4,628¥85,627¥3,690

¥612
¥25
¥326

¥5,240¥85,653¥4,017

¥41
¥48
¥0

¥5,282¥85,701¥4,017

¥86
¥—
¥ 
(—)
¥456
¥ 
(424)
¥ 
(32)
¥12,096

¥—
¥—
¥ 
(—)
¥—
¥ 
(—)
¥ 
(—)
¥447

¥86
¥—
¥ 
(—)
¥456
¥ 
(424)
¥ 
(32)
¥12,543¥—¥2,385¥ (2,385)
¥1
¥ 
(1)
¥ 
(—)
¥1,126¥86¥2,385¥ (2,385)
¥457
¥ 
(425)
¥ 
(32)
¥13,670¥1,394¥—¥1,394¥—¥1,394¥5,113¥832¥5,945¥52¥5,998

Banking

Lease

Millions of yen
Sub total

OthersTotal¥112,418
366¥112,785¥39,896¥7,616,644¥7,115,108¥21,899
439¥22,338¥1,646¥65,968¥54,515¥134,317
806¥135,124¥41,543¥7,682,613¥7,169,624¥1,9021,183¥3,085¥2,094¥27,845¥14,466¥136,220
1,989¥138,209¥43,637¥7,710,459¥7,184,091¥5,074¥86,085¥4,489

¥635
¥12
¥322

¥5,709¥86,097¥4,811

¥51
¥36
¥—

¥5,760¥86,133¥4,811

¥101
¥3
¥(3)
¥350
¥(258)¥(91)¥12,809

¥—
¥—
¥(—)
¥—
¥(—)
¥(—)
¥564

¥101
¥3
¥(3)
¥350
¥(258)¥(91)¥13,374

¥—
¥—
¥(—)
¥—
¥(—)
¥(—)
¥760

¥101
¥3
¥(3)
¥351
¥(259)¥(91)¥14,135¥1,542¥—¥1,542¥—¥1,542¥5,042¥846¥5,889¥67¥5,957

Year ended or as of March 31, 2016

Total income generated from businesses with
External customers
Internal units
Segment profit
Segment assets
Segment liabilities
OthersDepreciation
Interest and dividend income
Interest expenses
Equity in earnings of unconsolidated
subsidiaries and associated companies
Extraordinary profit(Gain on disposal of noncurrent assets)
Extraordinary loss
(Losses on disposal of noncurrent assets)(Impairment loss of fixed assets)
Tax
Investment of unconsolidated subsidiaries
and associated companies
Increase of property, plant and equipment
and intangible assets

Banking

Lease

Thousands of U.S. dollars
Sub total
OthersTotal$997,680$3,254$1,000,934$354,070$67,595,356$63,144,380$194,350$3,900$198,250$14,615$585,454$483,809$1,192,030$7,154$1,199,184$368,684$68,180,810$63,628,189$16,885$10,499$27,384$18,587$247,122$128,388$1,208,915$17,653$1,226,568$387,271$68,427,932$63,756,578$45,031$763,978$39,846$5,640$109$2,858$50,671$764,087$42,704

$453
$320
$—

$51,124$764,407$42,704

$903
$34
$(34)$3,110$(2,296)$(814)$113,684

$—
$—
$(—)
$—
$(—)
$(—)
$5,013$903$34$(34)$3,110$(2,296)$(814)$118,697

$—
$—
$(—)
$6
$(6)
$(—)
$6,754$903$34$(34)$3,116$(2,302)$(814)$125,451$13,688$—$13,688$—$13,688$44,755$7,516$52,271$597$52,868

b. Segment information by geographical area
Segment information by geographical area has not been disclosed because the income and total assets of Japan area constituted morethan 90% of the consolidated total.
c. Operating income from foreign operations
Operating income from foreign operations has not been disclosed because it constituted less than 10% of the consolidated income.

24. Earnings per Share
Yen
2016

2015

Net Assets per Share of Capital Stock
Earnings per Share of Capital Stock
Diluted Earnings per Share of Capital Stock¥1,146.98
56.37
56.3

¥1,126.44
63.78
63.68

U.S. Dollars
2016$10.000.57
0.57

1. Basis on calculating Net Assets per share was follows:

Millions of Yen
2015

Consolidated Net Assets
Deduction from nets assets
Less: Subscription Rights to Shares
Less: Non-controlling Interests
Consolidated Net Assets Attributable to Capital Shareholders¥523,535¥   5,374
316
5,058
518,160

2016¥507,727¥   5,941
377
5,564
501,785

Thousands of
U.S. Dollars
2016$4,505,925.00$      52,732.00
3,350
49,383
4,453,192

Thousands of Stocks
2016

2015

Number of Shares of Capital Shares. Used for Calculating Net Assets
per Share

451,760

445,46147

2. Basis on calculating Earnings per share was follows:
Millions of yen

For the year ended March 31, 2016
Basic EPS
Earnings available to Common shareholders
Effect of dilutive warrants
Diluted EPS

Net income

Yen¥28,616

Net income

Thousands of Stocks
Weighted averagestocks¥63.78$0.57¥63.68$0.57

Yen

U.S. Dollars
EPS

459,624
633¥25,910

U.S. Dollars
EPS

448,682672¥28,616

Millions of yen

For the year ended March 31, 2015
Basic EPS
Earnings available to Common shareholders
Effect of Dilutive warrants
Diluted EPS

Thousands of Stocks
Weighted averagestocks¥25,910¥56.37$0.50¥56.37$0.50

25. Consumption tax
Consumption tax is excluded from transactions reported by Bank and its consolidated subsidiaries.

26. Changes in Net Assets
a. Information on type and number of shares issued and treasury shares
Type and number of shares issued and treasury shares in the year ended March 31, 2016 were as follows:in thousands
Number of shares as ofthe previous fiscal
year-end

Number of shares
increased during theaccounting period

Number of shares
decreased during theaccounting period

Number of shares as of
the fiscal year-end

Shares issued
Common shares 
Total 470,888
470,888————

470,888
470,888

Treasury shares
Common shares 
Total 19,127
19,127

7,222
7,222

922
922

25,42725,427

Type and number of shares issued and treasury shares in the year ended March 31, 2015 were as follows:in thousands
Number of shares as ofthe previous fiscal
year-end48

Number of shares
increased during theaccounting period

Number of shares
decreased during theaccounting period

Number of shares as of
the fiscal year-end

Shares issued
Common shares 
Total 474,888474,888

—
—

4,000
4,000

470,888
470,888

Treasury shares
Common shares 
Total 10,33010,33013,823
13,823

5,026
5,026

19,127
19,127

b. Information on dividends
The following dividends were paid in the year ended March 31, 2016:

Date ofresolution
Annual meeting ofshareholders heldon June 24, 2015
Directors’ meeting
held on November
6, 2015

Amount of dividends
Millions ofThousands ofyen
U.S. dollars

Type ofsharesCash dividends per share
Yen

U.S. dollars

Recorddate

Effective
date

Common shares¥2,962$26,291

¥6.5

$0.06

March 31,2015

June 25,
2015

Common shares¥2,491$22,112

¥5.5

$0.05

September 30,
2015

December 4,
2015

The following dividends were paid in the year ended March 31, 2015:

Date ofresolution
Annual meeting ofshareholders heldon June 25, 2014
Directors’ meeting
held on November
7, 2014Amount of dividends

Cash dividends per share

Type ofsharesMillions of yen

Yen

Recorddate

Effective
date

Common shares¥2,347¥5.0

March 31,2014

June 26,
2014

Common shares¥2,113¥4.5

September 30,
2014

December 5,
2014

Dividends whose record date is attributable to the year ended March 31, 2015 but which are effective after March 31, 2016

Date ofresolution
Annual meeting ofshareholders heldon June 24, 2016

Type ofsharesAmount of dividends
Millions ofThousands ofyen
U.S. dollars

Common shares¥2,916$25,881

Cash dividends per
share
Source ofdividends

Yen

U.S. dollars

Recorddate

Effective
date

Retainedearnings

¥6.5

$0.06

March 31,2016

June 27,
2016

Dividends whose record date is attributable to the year ended March 31, 2015 but which are effective after March 31, 2015
Amount of dividends
Date ofresolution
Annual meeting ofshareholders heldon June 24, 2015

Cash dividends per share

Type of shares

Millions of yen

Source ofdividends

Common shares¥2,962Retainedearnings

Yen

Record date

Effective date

¥6.5

March 31,2015

June 25,
2015

27. Stock Options
1. Line Item where Stock Options is Presented and the AmountMillions of yen
2016

2015

General and administrative expenses 

¥126

¥117

Thousands of U.S.
dollars
2016$1,0402. Details of Stock Option(1) Outline of the Stock Option
Title and numbers of grantees
Number of stock options
Date of grantVesting condition
Service period
Exercise period

1st equity warrant
Directors (Exclude outside directors)
Common shares

11
290,900
July 26, 2012
Not fixed
Not fixed
From July 27, 2012 to July 26, 2042

49

Title and numbers of grantees
Number of stock options
Date of grantVesting condition
Service period
Exercise period

2nd equity warrant
Directors (Exclude outside directors)
Common shares

12
217,000
July 25, 2013
Not fixed
Not fixed
From July 26, 2013 to July 25, 2043

3rd equity warrant
Title and numbers of grantees
Number of stock options
Date of grantVesting condition
Service period
Exercise period

Directors
Common shares

Title and numbers of grantees
Number of stock options
Date of grantVesting condition
Service period
Exercise period

Directors
Common shares

Title and numbers of grantees
Number of stock options
Date of grantVesting condition
Service period
Exercise period

Directors
Common shares

Title and numbers of grantees
Number of stock options
Date of grantVesting condition
Servis period
Exercise period

Directors
Common shares

Title and numbers of grantees
Number of stock options
Date of grantVesting condition
Servis period
Exercise period

Directors
Common shares

11
59,900July 25, 2013
Not fixed
Not fixed
From July 26, 2013 to July 25, 2043
4rd equity warrant
12
189,400
July 28, 2014
Not fixed
Not fixed
From July 29, 2014 to July 28, 2044
5rd equity warrant
938,700July 28, 2014
Not fixed
Not fixed
From July 29, 2014 to July 28, 2044
6rd equity warrant
11
109,400
July 29,2015
Not fixed
Not fixed
From July 30, 2015 to July 29, 2045
7st equity warrant

50

10
27,000July 29,2015
Not fixed
Not fixed
From July 30, 2015 to July 29, 2045

(2) Size and situation of the Stock Option(a) The number of the stock option
Number of Shares
4st equity
5nd equity
warrant
warrant

1st equity
warrant

2nd equity
warrant

3rd equity
warrant

6nd equity
warrant

7st equity
warrant

Non-vested
As of March 31, 2015
GrantedForfeited
VestedOutstanding

239,800——
62,900176,900

180,600——
43,400137,200

30,600——5,100
25,500189,400——
14,000175,400

38,700——4,300
34,400—109,400——
109,400—
27,000——27,000vestedAs of March 31, 2015
VestedExercise
Forfeited
Outstanding—
62,90062,900———43,40043,400
—
—

—
5,100
5,100
—
—

—
14,00014,000
—
—

—
4,300
4,300
—
—

—
—
—
—
—

—
—
—
—
—

Exercise price
Average price at exercise
Fair value at grant date

1st equity
warrant
¥1
¥913
¥311

2nd equity
warrant
¥1
¥913
¥542

3rd equity
warrant
¥1
¥913
¥585

Yen
4st equity
warrant
¥1
¥913
¥545

5nd equity
warrant
¥1
¥913
¥591

6nd equity
warrant¥1—¥851

7st equity
warrant¥1—¥893

Exercise price
Average price at exercise
Fair value at grant date

1st equity
warrant
$0.01
$8.10
$2.76

2nd equity
warrant
$0.01
$8.10
$4.81

3rd equity
warrant
$0.01
$8.10
$5.19

U.S. dollars
4st equity
warrant
$0.01
$8.10
$4.84

5nd equity
warrant
$0.01
$8.10
$5.24

6nd equity
warrant
$0.01
—
$7.55

7st equity
warrant
$0.01
—
$7.93

(b) Price Information

3. The Estimations Used to Measure Fair Value of Stock Option(1) Valuation method
The Black-Scholes option pricing model(2) Main figures and the way of estimation
volatility of stock price (*1)
Estimated remaining outstanding Period (*2)
Estimated dividend (*3)
Risk-free interest rate (*4)

6nd equity warrant
25.397%
5.6 years¥11.00 per share
0.112%

7st equity warrant
28.073%
1.6 years¥11.0 per share
0.003%*1. Volatility of Stock Price is calculated based on the actual stock prices of Estimated Remaining Outstanding Period.
*2. Estimated Remaining Outstanding Period is calculated based on the average term in office of resigned directors (Exclude Non
executive director.)*3. Estimated Dividend is based on the actual results of the fiscal year ended March 31, 2015.
*4. Risk-free Interest Rate is based on bonds’ yields of the Estimated Remaining Outstanding Period.

4. Estimated Number of Stock Options to be Vested
The actual number of forfeited stock options alone is reflected because the number of stock options that will be forfeited in the future
cannot be readily estimated.

51

Report of Independent Auditors52