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

Financial Summaryfor the Fiscal Year 2023 Ended March 31, 2024
May 15, 2024
Lawson Bank, Inc. (https://www.lawsonbank.jp/)

I.

Financial Results Highlights(Financial figures are truncated to the unit stated)

1.

Results of Operation (Non-consolidated)

Total revenue
Net interest income
Net fees and commissions
Other business income
Net provision of generalreserve for loan losses
General and administrativeexpenses
Ordinary business profits
Ordinary profits
Net income
2.

FY2022 (12 months)
26,408-340
26,750-1(Millions of Yen)FY2023 (12 months)
27,526-105
27,6320

1

1

22,91024,870

3,495
3,495
2,359

2,655
2,658
1,917

Balance Sheets (Non-consolidated)

Cash and due from banks
Securities
Loans
Other assets
Total assets
Deposits
Call money
Borrowed money
Other liabilities
Total liabilities
Total equity

FY2022(As of March 31, 2023)
326,701
1,004
775
52,826
381,306
84,53937,000180,000
51,988353,527
27,7791(Millions of Yen)FY2023(As of March 31, 2024)
374,165
942
81,051
456,159
75,65149,000230,000
71,811
426,462
29,696

3.

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

FY2022 (12 months)
86.8%

FY2023 (12 months)
90.3%

Risk-weighted assets
Core capital
Capital adequacy ratio

FY2022(As of March 31, 2023)
81,98816,882
20.59%(Millions of Yen)FY2023(As of March 31, 2024)
85,816
11,40113.29%FY2022(As of March 31, 2023)

FY2023(As of March 31, 2024)

13,50913,584

97,937

110,628

141,408

145,095

Number of ATM units installed
Total number of banking
accounts
Number of credit cardcustomers

FY2022 (12 months)
Total number of ATM usage(1,000s)
Average daily ATM usage (no.
of times per day per unit)

FY2023 (12 months)

261,440

279,327

52.9

56.2

Note: Figures of total number of ATM usage are rounded off a number less than 1,000.

FY2022(As of March 31, 2023)
Number of affiliated financial
institutions (banks, companies,depositories) (Note1)
Number ofaffiliated
Immediate
services (Note2)
account
Number ofsettlement
affiliatedservicefinancial
institutions

FY2023(As of March 31, 2024)

385

401

561718Note:
1. The JA Bank and JF Marine Bank are considered each as an institution depending on business categories.
2. au PAY and WebMoney prepaid card (including Lite) are considered each as an institution depending onservice categories.

2

II.

Financial Statements
1. Balance Sheets (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY2022
FY2023(As of March 31, 2023)(As of March 31, 2024)[Assets]
Cash and due from banks
CashDue from banks
Securities
JGBLoans
Overdraft
Suspense payments in ATMs
Other assets
Prepaid expenses
Accrued income
Other assets
Guarantee deposits for
CCP
Tangible fixed assets
Buildings
Leased assets
Construction in progress
Other tangible assets
Intangible fixed assets
Software
Software in progress
Other intangible assets
Differed tax assets
Reserve for loan losses
Total assets

3

326,701
311,561
15,139
1,004
1,004
775
775
16,20915,355247
45
15,062

374,165
358,854
15,310942
942
37,144
18,270300
56
17,913

7,340

9,160

10,087
40
8,639
1,351
56
10,901
7,859
3,036
5278-6381,306

7,105
103
5,758
9
1,234
18,301
10,182
8,10810239-9456,159

[Liabilities]
Deposits
Ordinary deposits
Time deposits
Other deposits
Call money
Borrowed money
Borrowed money
Suspense receipts of ATM
Other liabilities
Income taxes payable
Accrued expenses
Lease obligations
Other liabilities
Accrued employees’ bonuses
Total liabilities[Equity]Common stock
Capital surplus
Capital reserve
Retained earnings
Legal reserve
Other retained earnings
Unappropriated retainedearnings
Total shareholders’ equity
Other unrealized gain onsecurities
Total net unrealized gain andtranslation adjustments
Total equity
Total liabilities and equity

4

84,53975,1629,358
18
37,000180,000
180,000
42,783
9,013
730
2,016
3,214
3,052
191
353,52775,651
68,931
6,625
94
49,000230,000
230,000
59,18012,400
164
2,333
1,911
7,991
230
426,462

11,60011,60011,600
4,578
4,578

11,60011,60011,600
6,496
6,496

4,578

6,496

27,77829,6960-0-27,779381,306

29,696456,1592.

Statement of Income (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY2022
FY2023(From April 1, 2022 to(From April 1, 2023 toMarch 31, 2023)
March 31, 2024)
Ordinary income
Interest income
Interest on loans
Interest and dividends on securities
Interest income on due from banks
Other interest income received
Fees and commissions income
Exchange fees received
ATM commissions received
Other fees and commissions income
Other business income
Gains on foreign exchange
Other ordinary income
Other ordinary income
Ordinary Expenses
Interest expenses
Interest on deposits
Interest on call money
Interest on borrowed money
Other interest paid
Fees and commissions expensesExchange fees paid
ATM installation commissions
expensesATM commissions expenses
Other fees and commissions
expenses
Other business expenses
Losses on sale of debentures
including JGB
General and administrative expenses
Other ordinary expenses
Provision of reserve for credit losses
Losses on write-off of loans
Other ordinary expenses
Ordinary profits
Extraordinary profits
Other extraordinary profits
Extraordinary losses
Tangible fixed asset disposal expenses

534,685
114
111
-0-1
3
34,562
88
34,038435
008831,190455
70-1237
149
7,812
236,002
157153-04
35,83398
35,209
525
0
0
11
11
33,343
263
411
170
76
8,201
2

3,420

3,601

3,871

3,952

518

644

1-1-

22,910
10224
3,495
0
096
96

24,8708
2
312,65854
54

Net income before income taxes
Income taxes
Income taxes, local inhabitant taxes
and the enterprise taxes
Deferred income taxes
Net income

6

3,399
1,039

2,604
686

1,087

647

-47
2,359

39
1,917

3.

Statement of Changes in Equity

FY2022 (From April 1, 2022 to March 31, 2023)(Financial figures are truncated to the unit stated)(Millions of Yen)
Valuation and translation
adjustments

Shareholders’ equity
Capitalsurplus
Commonstock

Balance of
beginning of 11,600
periodChange during
periodNet income
Net change
during period
for items otherthan
shareholders’equityTotal change
in period
Balance,
March 31,11,600
2023

Retainedearnings
Other retained
earnings
Defered retained
earnings

Total
shareholders’equity11,6002,219

25,41900

25,419

-

2,359

2,359

-

-

2,359

----0-0-0-

2,359

2,359

-0-0

2,359

11,6004,578

27,7780027,779Capitalreserves

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

FY2023 (From April 1, 2023 to March 31, 2024)(Financial figures are truncated to the unit stated)(Millions of Yen)
Valuation and translation
adjustments

Shareholders’ equity
Capitalsurplus
Commonstock

Balance ofbeginning of 11,600
periodChange during
periodNet income
Net change
during period
for items otherthan
shareholders’equityTotal change
in period
Balance,
March 31,
11,6002024

Retainedearnings
Other retained
earnings
Defered retained
earningsTotal
shareholders’equity11,6004,578

27,7780027,779

-

1,917

1,917

-

-

1,917----0-0-0-

1,917

1,917

-0

-0

1,917

11,6006,496

29,696--

29,696

Capitalreserves

7

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

4.

Cash Flow Statement (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY2022
FY2023(From April 1, 2022 to(From April 1, 2023 toMarch 31, 2023)
March 31, 2024)
I Cash flows from operating activities
Income (loss) before income taxes

3,399

2,604

Depreciation

6,943

6,195

22-3

38

Net change in operating receivables (-)

-759

-443

Interest income

-114

-157

Interest expenses

455

263

Losses (gains) on related securities (-)

1-

Net change in stored items (-)

3-73

Net change in guarantee deposits (-)-2,340-1,820Net change in unsettled money for ATMs (-)

25,378-4,536

Net change in accounts payable

220

-110

-40,915-8,895

99

151

-507

-250

Losses (gains) on disposal of fixed assets

9654

Net change in borrowed money (-)-6,60062,000

Repayment of lease obligations-3,169-1,882

Other

1,415

896

Sub total-16,393

54,035

Payment of corporate taxes, etc.

-1,399-1,383

Refund of sales tax, etc.

-1,103-1,253-18,896

51,399-4,022-

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

Net change in deposits (-)
Interest received
Interest paid

Net cash generated by operating
activities
II Cash flow from investing activities
Purchase of securities
Proceeds from sales and redemptionof securities
Purchase of tangible fixed assets

9,010

1,000-1,366-33

Purchase of intangible fixed assets-2,727-4,911

Purchase of deposit of guarantee deposits
Proceeds from collection of security
deposits
Net cash provided by (used in) investing
activities

-71

-4

67

14890

-3,9348

FY2022(From April 1, 2022 toMarch 31, 2023)(Millions of Yen)FY2023(From April 1, 2023 toMarch 31, 2024)

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

9-----18,005

47,464

344,706

326,701

326,701

374,165

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

Capital Adequacy Raito Information

Risk-weighted assets
Core capital
Capital adequacy ratio
2.

(Millions of Yen)FY2023(As of March 31, 2024)
85,816
11,40113.29%FY2022(As of March 31, 2023)
81,98816,882
20.59%

Claims Classified under the Financial Revitalization Law (Non-consolidated)(Millions of Yen)FY2023(As of March 31, 2024)

FY2022(As of March 31, 2023)
Claims against bankrupt andquasi-bankrupt obligors

47

Doubtful claims

510

Substandard claims

65

Three-month delinquentclaims65

Claims with moderated
loan conditions--1623

Normal claims

17,37738,486

Total

17,39338,510Subtotal3.

Derivative Transaction
None.

4.

ATM Transactions
FY2022(As of March 31, 2023)
Number of ATM units installed

FY2023(As of March 31, 2024)
13,584

13,509FY2022 (12 months)
Total number of ATM usage(1,000s)
Average daily ATM usage (no.
of times per day per unit)

FY2023 (12 months)

261,440

279,327

52.9

56.2

Note: Figures of total number of ATM usage are rounded off a number less than 1,000.

10

FY2022(As of March 31, 2023)
Number of affiliated financial
institutions (banks, companies,depositories) (Note1)
Number ofaffiliated
Immediate
services (Note2)
account
Number of
settlement
affiliatedservicefinancial
institutions

FY2023(As of March 31, 2024)

385

401561718

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

5.

Other
FY2022 (12 months)
Interest margin for total fund6.

FY2023 (12 months)-6.40%

General and Administrative Expenses(Millions of Yen)FY2023 (12 months)

FY2022 (12 months)
Personnel expenses

1,803

2,007

Non-personnel expenses

20,842

22,587

6,943

6,194

264

275

22,91024,870

Number of Directors, Auditors, and Employees
FY2022(As of March 31, 2023)

FY2023(As of March 31, 2024)

Depreciation
Taxes
General and administrative
expenses7.

-6.42%

Directors and auditors

1010Directors

66Auditors

44Employees

163

190

Total

173

200

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

11