ANNUALREPORT

2020

Profile
Musashino Bank is the only regional bank whose operationalbase consists of Saitama Prefecture in the Tokyo metropolitan
area. The prefecture lies immediately to the north of Tokyo,
and many of its residents commute to work in the capital.
Currently, 7.3 million people (estimated) live in Saitama,
making it the country’s fifth most populous prefecture after

Tokyo, Kanagawa, Osaka, and Aichi, and the population isstill climbing. Since its establishment in 1952, Musashino
Bank has been one of Saitama Prefecture’s core financial
institutions, and has played a major role in supporting thedevelopment of the regional economy and local industries forover six decades.

Corporate Philosophy“Working in harmony with the local community it serves”

To contribute to the prosperity of the local community and to secure growth and development in partnership with the region.

“Maintaining a deep respect toward customers”

To engage in bold management that anticipates change while providing the highest-quality services throughout the organization
as a whole.

Bank Data (non-consolidated basis, as of March 31, 2020)

Subsidiaries and Affiliated Companies

Head Office:Home page:
Established:
Networks:

Name
The Bugin General Lease
Co., Ltd.
The Bugin Guarantee
Co., Ltd.
The Musashino Card
Co., Ltd.

(As of June 30, 2020)

Number ofmortgage loan centers:
Employees:
Total assets:
Deposits:
Loans:
Common stock:
Capital adequacy ratio:
Number of correspondent
arrangements:
Issued common stock:333-13, OLS Building, Sakuragi-cho 4-chome, Omiya-ku, Saitama
http://www.musashinobank.co.jp
March 6, 1952
Number of branches: 99 (Saitama Prefecture: 93 [of which
2 are sub-branches], outside Saitama Prefecture: 6)92,051¥4,659.3 billion¥4,360.8 billion¥3,584.5 billion¥45.7 billion
8.13%
113
33,805 thousand sharesLine of Business
General leases, installment-payment
services, auto leasing services
Loan guarantees for individuals

Credit card business (JCB, VISA),
loans and loan guarantees related tocard services
The Bugin System Service Development, sale and maintenanceCo., Ltd.
of computer systems
The Bugin Economic
Research into the regional economy,
Research Instituteconsultation, information services,Co., Ltd.
and holding of seminars
The Bugin Capital Co.,Management support for ventureLtd.
businesses
The Musashino Harmony Outsourcing of operational businessCo., Ltd.

Contents
1 Financial and Non-Financial Highlights
4 Value Creation Process
6 Message from the President
9 Long-term Vision/Medium-term Management Plan
10 Operational Base of Saitama Prefecture/Alliance Strategy
11 Providing SME Management Assistance
12 Contributing to the Local Economy
13 ESG/SDGs Initiatives

16 Corporate Governance17 Compliance
18 Risk Management
19 Consolidated Balance Sheets
21 Consolidated Statements of Income and Comprehensive Income
22 Consolidated Statements of Changes in Equity
24 Consolidated Statements of Cash Flows
25 Directory

Financial and Non-Financial Highlights
The Musashino Bank, Ltd. and Consolidated Subsidiaries Years Ended March 31, 2020 and 2019

Thousands of
U.S. Dollars(Notes 1 and 2)
2020

Millions of Yen (Note 1)
2020
2019

At Year-end
Total assets.............................................................................................
Deposits including negotiable certificates of deposit...............................
Loans and bills discounted.....................................................................
Trading account securities and securities.................................................
Total net assets.......................................................................................
Capital adequacy ratio (based on domestic standards) (%).....................

¥4,674,059
4,343,879
3,571,715
624,188
235,458
8.46¥4,626,044
4,282,860
3,522,130654,442
239,2148.40$42,948,259
39,914,353
32,819,213
5,735,441
2,163,539

For the Year
Ordinary income....................................................................................
Ordinary expenses..................................................................................
Profit before income taxes......................................................................
Profit attributable to owners of parent....................................................

¥   67,852
59,106
8,732
8,066¥   77,858
66,487
10,917
5,345$   623,468
543,104
80,235
74,116

Notes: 1 . In this annual report, Japanese yen (in millions) and U.S. dollars (in thousands) are indicated with fractions rounded off.
2. U.S. dollar figures have been translated at the rate ¥108.83 to U.S.$1, the prevailing exchange rate as of March 31, 2020.

Ordinary income

Ordinary expenses(¥ million)(¥ million)

70,90377,85872,26358,01567,852

Profit attributable to owners of parent(¥ million)

66,487
59,10656,530

9,762

10,9178,066
5,345

FY2016FY2017FY2018FY2019FY2016FY2017FY2018FY2019FY2016FY2017FY2018FY2019Forward-Looking Statements: This annual report contains forward-looking statements regarding the Bank’s financial condition and results ofoperations. These forward-looking statements, which include the Bank’s views and assumptions with respect to future events, involve certain
risks and uncertainties. Actual results may differ from forecasts due to changes in economic conditions and other factors.

Number of employees
2,224

2,171
776

757

1,446

1,395

1,346

FY2018FY2019Men

Women

CO2 emissions

(%)

(t)

2,103

778

FY2017

Ratio of female managers

18.5

19.2

19.4

FY2017FY2018FY2019

6,887

6,446
5,779

FY2017FY2018FY20191

Governance
Composition of the Board of Directors
Ratio ofoutside directors

Composition of the Board of Corporate Auditors

33.3% (3 out of 9 members)

Internal directors

Ratio of outside
corporate auditors

60.0% (3 out of 5 members)Standing corporate
auditors

Outside directors(As of July 2020)

Outside corporate
auditors(As of July 2020)

SocialCustomer baseSupport for customers’ core business activities

Number ofcorporate borrowers

Start-up support

20,166 companies

projects

20,166

20,049

796

800

746

19,725

Support fordeveloping
sales channels

1,826
companies

1,769

1,826

2019.32020.3796
1,260

2018.32019.32018.32020.3

Solving issues such as business succession

164

Support forbusiness
succession

companies

2018.3182

Support for
M&As

2018.3companies

Number of employees obtaining qualifications as
1st Grade Certified Skilled Professional of Financial Planningand Small and Medium Enterprise Management Consultant

182

121

2019.32020.3Developing specialized human resources

164
108

2019.32020.3

96

100

2018.32019.3145
2020.3

Promoting active roles for diverse human resources

employees(As of March 31, 2020)

External assessments of measures to promote active roles
for diverse human resources

Ratio of female managers

14.3%

19.4%
Platinum Kurumin

2016.32

2020.3(Obtained in 2017)

Recognized under the Act on Advancement of Measures
to Support Raising Next-Generation Children

Eruboshi(Obtained in 2016)

Recognized under the Act on Promotion of
Women's Participation and Advancement in the Workplace

Creating work opportunities for people with disabilities

Promoting work-life balance

Ratio of employees with disabilities

Childcare leave acquisition rate

2.32%

100 %

for both men and women(March 2020, Group-wide)

Contribution to local communities through our main business(Year ended March 31, 2020)

Financial literacy

SDGs private-placement bonds(Donation-type private-placement bonds)

Issue amount
Total of¥6,920 million

Number of participants in financial literacy classes
for elementary school students

Donation amount
Approx.

Total of¥13 million

871

participants(September 2018 to March 2020)(2010–2019)

Environment
Support for promotion of local culture and art

CO2 emissions(Tons)

Violin concerts at elementary schools
within Saitama Prefecture

44

Total of

6,887

6,446

5,779

2019.32020.3concerts (2009–2019)

Concerts for customers
Total of11

concerts (2007–2019)2018.3

Greening activities

Environmentally friendly accounts

Subsidies provided
by the Musashino Green Fund public trust
Total of¥71.30295

Environmentally friendly accounts that do not issue passbooks,
leading to reduced paper use

WebNotemillionTotal ofenvironmental organizations
provided with assistance(July 1992 to April 2020)

20,210accounts(As of March 31, 2020)3

Value Creation Process
As the environment both in Japan and overseas changes significantly, the Bank will strive to capture the full potential of
the Tokyo metropolitan area, centered on Saitama Prefecture, which is the Bank’s operational base. The Bank will establish
sustainable business models in the business domains of “growth” and “creation,” with the goal of continuing to grow together
with customers and communities.

Capital deployed
INPUT
Financial capital• Growing solution revenue• Loan-to-deposit ratio at the
top level of the regional banksector• Sound loan assets and capital
adequacy

Human capital• Employees’ devotion andsense of mission toward
communities• Human resources with strong
specialized expertise• Promotion of a diverse
workforce, including womenSocial capital

The Bank remains close to customers
and solves their issues,
thereby achieving growth together with its customers.
“Working in harmony withthe local community it serves”

Corporatephilosophy

Business modelMedium-term Management
Plan “MVP 70”

Advanced solutions functions,in addition to financial
intermediary functions, lie atthe core of business

Growth domain• Number one solutionsin the region• Integration of people
and digital technology

Creation domain

Growth strategy

Proactive efforts towards
regional revitalization andstimulation of the local
economy• Operating in the Tokyo
metropolitan area, centeredon Saitama Prefecture• Branch networks with close
ties to communities• A continuously growing
customer base developedsince the Bank’s foundingIntellectual capital• Quality and quantity of
information throughnetworks closely tied tocommunities

Human resource strategy
Digital transformation strategy

Unique strengths(Build infrastructure and systems)

Operating in the Tokyo
metropolitan area, a growing
regionSecurities strategy

Implement strategies that
capture the full potential ofthe market• Use of digital technologies
that facilitate the creation of
new businesses and services

4

Creation strategy

Alliance strategy

Group strategy
Corporate governance• Ability to deliver diverseand sophisticated solutions
through business evaluations

Awarenessof external
environment
surrounding
regional financial
institutions“Maintaining a deep respect
toward customers”

Compliance
ESG/SDGs

Economy and society

Finance• Aging with fewer children• Transition to a society with a declining population• Increase in business closures, etc. due to a lack of successors• Regional revitalization • Stimulation of local economy• Diverse values • Address climate change • Digital transformation• Prolonged monetary easing• Continued low interest rates• Growth of internet banks/
FinTech companies• Rapid adoption of cashless transactions

Solid bank management
based on an unwavering
corporate philosophy

AaaaaaVisionAaaaaa
forMusashino Bank

Value provided

OUTPUTOUTCOME
Town

Create vibranttowns thatbring together
people andbusinesses

Work

PeopleAchieve further
revitalizationof the regional
economySolve issuesof all kinds incommunities

Promote innovation of
local industries and local
consumption of locally
produced goods

Contribute to thedevelopment of
comfortable, resilient
towns

Shareholders andother investors• Increase shareholder value

Local communities
Measures to develop
communities where
people can leadhealthy, happy lives as
individuals

A bank always close
to customers andcommunities

A bank that cherishes
employees and helps
them grow• Contribute to innovation forcommunities as a whole• Further promote the development ofindustry

Customers
Address climate change
on a global scale• Increase the corporate value of customers• Stable asset formation and succession

Employees
Maintain and improve
the region’s abundantbiodiversity• Diverse and highly fulfilling work styles• Promote diversity• Create local employment

Saitama Prefecture• Progress on urban redevelopment and the establishment ofindustries• Population aging faster than any other prefecture in JapanThe number one
bank in the region
that creates value
in Saitama(The Value-making
Bank)

Living with coronavirus/Life after coronavirus• Enhance the business continuity framework• Contribute to regional economic revitalization• Changes in lifestyles and work styles under a new normal

5

Message from the President

Continuing to Grow Together
with Communities

Kazumasa Nagahori
President

Financial Results for Fiscal 2019
Looking back at fiscal 2019, in Saitama Prefecture, various
activities had been under way in anticipation of the Tokyo
2020 Olympic and Paralympic Games, such as urban
redevelopment and the establishment of industries, following
the successful conclusion of Japan’s first Rugby World Cup.
However, in the second half of the fiscal year, the outlook
became increasingly uncertain due to the impact of intensifying U.S.-China trade friction, in addition to a steady string of
natural disasters such as Typhoon Hagibis (Typhoon No.19).
In 2020, the coronavirus disease 2019 (COVID-19) outbreak spread around the world, impacting supply chains in
the manufacturing sector and other parts of the economy. In
April, a state of emergency was announced for the first timein Japan. Various restrictions on economic activity, including
self-quarantine and temporary business closure requests by
the authorities, lasted for two months. These restrictions
had a widespread impact on the daily lives of residents andbusinesses in Saitama Prefecture. The economy experienced
substantial negative growth, marking its largest downturn
since the global financial crisis of 2008.
Under these conditions, regional financial institutions
like Musashino Bank play a crucial role in maintaining andcreating regional industries and employment. Our role—andsocial significance—in these respects are once again being put
to the test. In addition, monetary easing has persisted overthe long term, while cashless transactions and digitalization
are proceeding at an even faster pace than before. Regional
financial institutions will need to establish sustainable business models that go beyond what has been tried before.
6

In Saitama Prefecture, the Bank’s local market, the population
is aging faster than any other prefecture in Japan. Expectations
are growing on a daily basis toward the Bank’s efforts to increase
service levels to support the need for seamless inheritance andbusiness succession, and its measures to promote regional revitalization and stimulation of the local economy in anticipation of asociety with a declining population.
In addition to the foregoing issues, the financial sector
has an even greater role to fulfill in tackling shared global
issues such as climate change, human rights, poverty andeconomic disparity. Proactive and positive efforts to address
the sustainable development goals (SDGs) have become anurgent priority.
In this environment, our deposits stood at ¥4,360.8 billion as of March 31, 2020, an increase of ¥72.4 billion froma year earlier. Assets in custody, such as investment trusts andinsurance products, were ¥828.1 billion, an increase of ¥5.3
billion from a year ago.
Loans outstanding continued to increase firmly, up ¥49.0
billion from the previous fiscal year-end to ¥3,584.5 billion.
On the earnings front, the Bank recorded profit of ¥7.0
billion on a non-consolidated basis, up ¥2.3 billion year
on year, and profit attributable to owners of parent of ¥8.0
billion on a consolidated basis, up ¥2.7 billion year on year.

Building Sustainable Business Models
In these and other ways, conditions in Japan and overseas
have changed dramatically. In April 2013, the Bank
formulated its 10-year long-term vision, the “Musashino
Value-making Plan (MVP).” We have continued to work

single-mindedly to realize this vision.
Aiming to become “the region’s number one bank thatcreates new value in Saitama (The Value-making Bank),” weare determined to establish a business model where “the Bank
remains close to customers and solves their issues, thereby
achieving growth together with its customers.” Even after thechange in the Bank’s previous president, our determination
remains entirely unchanged.
To support the increasingly sophisticated and diversified
needs of our customers, we seek to develop a shared understanding of issues in the course of our daily communication
with customers, and apply the Group’s collective capabilities
to solving those issues, while leveraging the strengths of the
networks we have built over the years and our strong personal
relationships with each customer. Moreover, we will delivercustomer satisfaction that surpasses customers’ expectations
by focusing on the creation of new businesses and services. In
parallel, we aim to enhance our earnings capabilities.
Furthermore, as a local bank based in Saitama Prefecture,
we cannot realize the Bank’s growth without ensuring theregion’s sustained development. Amid an aging society withfewer children and a declining population, banks have an
extremely significant role to play in energizing the economy
and society and achieving regional revitalization. We will collaborate with various stakeholders including not only government as a matter of course, but also educational institutions
and the non-profit sector. We will serve as a coordinator andwork actively on priorities such as identifying and creating
new local resources, promoting industry, and expanding
the non-resident and resident populations. In addition,
guided by the Musashino Bank Sustainable Development
Goals Declaration, we are focusing on refining corporate
governance, contributing to a sustainable regional economy
and society, and proactive measures to address climate change
and the environment. Through unwavering efforts to remainclose to customers and communities and create new value, wewill continue to build unique business models.

Deposits including negotiablecertificates of deposit(non-consolidated)(¥ billion)

4,140.6

FY2016

4,209.5

4,288.4

Medium-term Management Plan “MVP 70”
In April 2019, we launched a medium-term management
plan called “MVP 70,” as our final step toward realizing ourlong-term vision “MVP.” Under this plan, we aim to be “abank always close to customers and communities” and “abank that cherishes employees and helps them grow.” With
this in mind, we seek to accelerate and further consolidate thebusiness model reforms we have been working to achieve overthe past few years.

Branch Networks
Looking at specific initiatives, I would first like to discuss ourbranch networks. We have strengthened measures in areas
with growth potential, such as central Tokyo and areas along
Saitama Prefecture’s borders, while maintaining the networks
that we have built out to date. In October 2019, we openeda branch in the Ikebukuro district of Tokyo. The Ikebukuro
district has deep economic ties with Saitama Prefecture, andthe new branch has been warmly received by customers andother stakeholders in the area.

Rebuilding Our Sales System
In order to establish a sales system to provide optimal solutions,
we have clearly defined the roles of personnel assigned to eachcorporate and individual customer. Along with this, we will focus
on improving the specialized expertise of the Bank’s employees,
by encouraging them to obtain practical business know-how at
our head office and branches based on the Training Solutions
Program, the Bank’s own human resources program.

Initiatives for Corporate and Individual Customers
The Bank has been responding to customer needs accurately
by providing fine-tuned solutions with a diverse lineup of
products and services. In March 2019, the Bank became
the first financial institution based in Saitama Prefecture toacquire a trust license. We have developed a full lineup of
our own financial products such as testamentary trusts andmonetary trusts, enabling us to support the need for seamless
inheritance and business succession.

Assets in custody(non-consolidated)Loans(non-consolidated)(¥ billion)(¥ billion)

4,360.8

822.8

828.1

776.7

3,425.3

743.7

FY2017FY2018FY2019FY2016FY2017FY2018FY2019FY20163,470.8

FY20173,535.5

FY20183,584.5

FY20197

Digital Transformation

Alliance Strategy

The Bank is addressing digital transformation (DX), which
has been advancing rapidly. Led by the Digital Transformation
Office set up in October 2019, the Bank has been accelerating
measures to enhance productivity by increasing service levels
and carrying out administrative and business reforms. In order
to increase service levels, we have been upgrading and expanding the banking functionality of the Musashino Bank App, ourown smartphone app. Additionally, we have strategically madeuse of partnerships with different business types and otherbanks. Notably, we were the first regional bank to participate
in AIRPOST, a platform for shared procedures built by
megabanks, securities firms, life and non-life insurance companies, and other players. Through these initiatives, we aim
to deliver even more user-friendly services in a timely manner.
Moreover, we are pushing ahead with our next-generation
branch transformation initiative as part of our efforts toenhance productivity through digitalization. With this initiative, we seek to transform our branches from administrative
offices to centers for offering high-value-added consultations
and other services. By developing branch procedures thatare easy to follow through the use of tablets, we will strive toenhance communication with customers, visualize and shareissues, and properly solve those issues. In parallel, we will work
to enhance productivity further. Efforts will include reducing
the Bank’s overall work volume through such means as thedigitalization of centralized head office operations.

The Chiba-Musashino Alliance is a comprehensive alliance
between The Chiba Bank, Ltd. and Musashino Bank, twobanks based in the Tokyo metropolitan area. The TSUBASA
Alliance is a wide-area alliance of 10 regional banks
representing various areas across Japan. By fully harnessing
the strengths of each of these alliances, the Bank will further
accelerate its growth strategies.

Refining Corporate GovernanceWe believe corporate governance is the starting point for allof our efforts to increase corporate value. Based on this belief,
we have actively brought onboard outside directors andoutside corporate auditors with a broad range of experienceand knowledge, with the aim of ensuring even more highly
transparent management. Moreover, we are taking active
steps to raise the sophistication of risk management, bolster
compliance and address new issues such as anti-money
laundering and cyber security. Another priority is to enhancecommunication with stakeholders.

Continuing to Grow Together with Communities
The Bank’s corporate philosophy of “Working in harmony
with the local community it serves” and “Maintaining a
deep respect toward customers” has been in place since the
Bank was founded. Based on this corporate philosophy, we
will continue to work hand in hand with all stakeholders,
including customers, shareholders, and the local community,
along with employees and their family members, to achievesustainable growth. In doing so, we seek to meet the expectations of all of our stakeholders.
In closing, we kindly ask for your continued support andunderstanding.

Human Resource Development
The Bank believes that human resources are the key todifferentiating itself from other financial institutions. We
are working to create an environment where all employees,
including younger staff and women, can improve their skills
and abilities and obtain a high level of job satisfaction. We
are also fully committed to promoting diversity. Proactive
steps are being taken to enhance the work-life balance of
employees, including encouraging staff to take all of theirchildcare leave.

Profit attributable to owners of parent/
Net income(¥ billion)

9.7

10.9
9.0

Kazumasa Nagahori
President

Dividend payout ratio and annual dividend

5-year average of consolidated ROE

FY2016 FY2017 FY2018 FY2019

10.0
8.0
5.3

7.0

4.7

Dividend
payout ratio (%)

29.7

Annualdividend (Yen)

80

26.5

57.0

37.7

5.6%
80

80

80

5.2%

4.6%
3.9%

Shareholders return ratio
FY2016 FY2017 FY2018 FY2019

FY2016FY2017

Consolidated
Non-consolidated

8

FY2018FY2019

Shareholders
return ratio (%)

29.7

26.5

57.0

37.7

FY2016FY2017

Consolidated
Non-consolidated

FY2018FY2019

Long-term Vision/Medium-term Management Plan
In 2013, the Bank formulated its long-term vision as a management indicator for the next 10 years. In April 2019, we started
the medium-term management plan “MVP 70” as the final phase in this long-term vision. Aiming as a bank to remain close to
our customers and communities at all times, and to value people and help them to grow, we will consolidate the business model
reforms that we have carried out to date, and provide new added value to our local customers.

Long-term Vision: “MVP (Musashino Value-making Plan)”

The number one bank in the region that creates value in Saitama
The Value-making Bank

By creating value in Saitama, lead the economic development of Saitama,
and also grow ourselves by responding to the expectations of our customers
Medium-term management plans

Phase 3 (4 years)

Phase 1 (3 years)

Phase 2 (3 years)“MVP 1/3 (One-Third)”“MVP 2/3 (Two-Thirds)”(April 2013–March 2016)(April 2016–March 2019)

Enhance readiness to become
the number one bank in the region

Establish our reputation as thenumber one bank in the region

Medium-term management plan
“MVP 70”
Maintain our overwhelming
position as the number one bankin the region

Medium-term Management Plan “MVP 70” Plan period: April 2019–March 2023
Our Vision•A bank always close to customers and communities•A bank that cherishes employees and helps them grow

The Bank rigorously pursues a business model that reinvests
in community development to earn the overwhelming
satisfaction of customers and earnings by resolving issues

Key Strategies• Growth strategy• Creation strategy• Human resource strategy• Digital transformation strategy(Build infrastructure and systems)
Quantitative Results and Targets• Alliance strategy• Securities strategy• Group strategy• Management and administration systems, compliance, ESG/SDGs
FY2019FY2022Net earnings from core business¥11.5 billion¥15.0 billion

Earnings¥7.0 billion¥10.0 billion

Core OHR

74.38%

70% or less

ROE

3.09%

4% or more

Equity ratio

8.13%

8% level

9

Operational Base of Saitama Prefecture/Alliance Strategy
Musashino Bank’s Operational Base

Alliance Strategy

The Bank’s operational base is Saitama Prefecture, which hasa high concentration of logistics and production bases due to
its well-developed transportation infrastructure, including the
Ken-O Expressway and a nexus for all six of the Shinkansenbullet train lines in East Japan. Total production in Saitama
Prefecture is around ¥23 trillion, making it the fifth largest prefectural economy in Japan. A large number of companies haverelocated there from outside the prefecture, with the net increase
from corporate relocations over the 10-year period from 2010 to2019 standing at 688 companies, the highest in the country for
9 consecutive years. In this environment, the Bank recognizes
that its mission is to promote locally rooted finance, and we
strive to provide our corporate clients with a smooth supply offunds and other support for their core operations.

Following the Chiba-Musashino Alliance, the Bank has now
entered into the TSUBASA Alliance. While fully leveraging
the benefits of wide-area partnerships, we will further accelerate strategic alliances, contributing to the sustainable growthof regional society through the provision of high-value-added
financial services to customers while firmly retaining
autonomy in management.

Tochigi
Prefecture

Gunma
Prefecture
NaganoPrefecture

Yamanashi
Prefecture

SaitamaPrefecture

IbarakiPrefecture

As the Chiba-Musashino Alliance that started in March 2016
enters its fifth year, the two banks’ coordinated projects andcollaborations in many fields are accelerating. We aim to
expand our operational alliance even further in areas suchas joint establishment of sales offices in Tokyo, including
the Ikebukuro Branch and the Hamamatsucho Office, andfurther expand sales collaboration in such areas as securities brokerage, inheritance and international operations.
Furthermore, in an effort to resolve regional issues in Saitama
and Chiba Prefectures and revitalize their local economies,
we will focus on initiatives aiming to provide such revitalization, such as jointly holding relocation seminars and events
promoting local consumption of locally produced goods.
Financial Instruments Intermediary BusinessTokyo
Kanagawa
Prefecture

Chiba-Musashino Alliance

Asset Management Operations

Chiba
Prefecture

Inheritance-Related Services
International Operations
Joint Establishment of Sales Branches
Business Succession Support

TSUBASA Alliance
The TSUBASA Alliance is Japan’s largest
alliance of regional banks, with 10 regional banks participating in the alliance from various areas across Japan. As
digitalization continues to advance, we are working together
with other alliance partners in a wide range of fields, such as
initiatives to increase the sophistication of financial services,and measures to address cashless transactions and anti-money
laundering.

An expressway and railway networkthat reaches all over Japan• Musashino Bank
• Chiba Bank
• Chugoku Bank• Iyo Bank
• North Pacific Bank • Hokuetsu Bank
• Bank of The Ryukyus

Expressway
Railway (Shinkansen)• Daishi Bank
• Toho Bank
• Shiga Bank

Main Initiatives

NaritaInternational Airport
Tokyo
International Airport(Haneda)10• Create platforms that promote increased service levels and cost
reductions• Initiatives to respond to cashless transactions, FinTech, anddigitalization• Collaboration on overseas-related operations• Cost reduction through new technologies• Initiatives for achieving the SDGs

Providing SME Management AssistanceStrengthening Solution Marketing

Offering a Variety of Financing Methods

Through initiatives led by the Solutions Marketing Division,
the Bank is working to create beneficial cycles in the local
economy by providing diverse solutions to meet the needsof corporate clients at various stages in their businessdevelopment. These include management innovation support
through partnerships with external organizations, such as
government institutions, as well as support for inheritanceand business succession, and support for M&As.

The Bank has focused on offering a variety of financing methods,
including syndicated loans to diversify procurement methods andimplement financial rationalization when a cooperative financing
group has been formed by a number of financial institutions,project financing that provides funding after focusing on the
cash flow of a business, private placement bonds that result in
improving the corporate image of a company conducting fundprocurement, and Asset-Based Lending (ABL) that makes use of
the customer’s product inventory, accounts receivable or suchlike.

Solutions Marketing Division
Information-based sales

Business matching

Business financing

M&As

Founding businesses and new businesses

Trusts and inheritance

Development/area planning

Private banking

Musashino Bank Group companies
LeasesCredit cards

Loan guarantees

Think tanks

Systems

Venture capital

SMEs
Founding period

Growth andstability period

Reform period

Support for Solving Various Issues by
Utilizing Information
At the Information Center located in our Head Office, we collectinformation about business matching, real estate, the local area, andother matters, and use it to meet needs for sales channel expansion,
market development, technology alliances, and establishment ofoffices, plants, and so forth. In addition, we obtained a license tooperate a fee-charging employment placement business in September
2020, and we began employment placement operations in October.

Support for Overseas Expansion
We set up a Representative Office Registered in Singapore inAugust 2018. Through this office, we offer a wide range of services
to support clients’ activities in the ASEAN region, both those carrying out business expansion and those examining the launchingof new businesses. Services include providing information throughour local networks, and planning and holding various events.
The Musashino Bank, Ltd.,
Representative Office Registered in
SingaporeSupport for Start-Ups and New Entries
The Bank has developed its own unsecured, unguaranteedfinancial products for entrepreneurs whose businesses areyounger than two years old. We have established a Start-Up
Support Desk, and we use our uniquely capable network toprovide information, support business plan formulation, anddispatch experts. We also provide detailed support throughclose cooperation between our “support team for start-ups
and new entries” in our Head Office and branches.

Support for Manufacturing Companies
The Bank continuously implements initiatives to foster
management and technological innovation and enhance
productivity at companies in the manufacturing sector. Twoof these initiatives are the Monozukuri Management Course,which presents insights into cutting-edge industry trends andrelated topics, and Digital Academy, which supports more
highly specialized activities that address digitalization. Bothof these initiatives have been well received.

50 Raffles Place, #10-07 Singapore
Land Tower, Singapore 048623
TEL: +65-6323-6340
FAX: +65-6535-6341
singapore@musashinobank.co.jp

Supporting M&As, Inheritance, andBusiness Succession
To help customers with issues of inheritance and businesssuccession, our highly knowledgeable expert staff offer proposals that are optimal for each customer. In March 2019, theBank became the first financial institution based in Saitama
Prefecture to acquire a trust license, enabling us to provide afull line of services such as testamentary trusts. In addition, forcustomers that wish to transfer their companies, we provide
M&A support services to provide a smooth business succession.

Business Evaluation
The Bank does not rely excessively on financial data, collateraland guarantees—it is carrying out initiatives that prioritize
business evaluation, including the business details and growth
possibilities of each individual company. The number ofborrowers based on a business evaluation stood at 7,000
companies as of March 2020.
11

Contributing to the Local Economy
Deposits from the Region

Loans to the Region

As of March 31, 2020, deposits from the region increased¥99.3 billion year on year to ¥4,162.4 billion. The ratio of
deposits from the region continued to be high, at 98.75% of
the total balance of deposits.
The Bank’s share of deposits within the prefecture as ofMarch 31, 2020 is 13.18%.

Loans to the region as of March 31, 2020 rose ¥52 billion to¥3,062.5 billion, thereby maintaining a high loan-to-region
ratio of 85.44%. The Bank’s share of loans in the prefectureis 19.07%.

Assets in Custody from the Region
As of March 31, 2020, assets in custody from the region
increased ¥5.3 billion year on year to ¥827.2 billion. The
breakdown comprises investment trusts of ¥110.8 billion,
life insurance of ¥666.0 billion, and government bonds andother assets of ¥50.4 billion.

Towards a Sounder Financial Position
The Bank is strengthening its capital adequacy and reducing
non-performing loans. The Bank has maintained a consolidated and non-consolidated capital adequacy ratio (Basel III
domestic standard) of 8.46% and 8.13%, respectively, so wehave continued to maintain a very sound financial position.
The Bank’s non-performing loan ratio, based on standards
established by the Financial Reconstruction Act, is 1.98%.

* Investment trust figures are market value; life insurance figures are total sales.

Deposits from region/Ratio of deposits from region

Loans to region/Ratio of loans to region

Non-consolidated(¥ billion)

Non-consolidated(¥ billion)

99.12%

3,916.9

FY201698.90%
3,991.8

FY201798.36%
4,063.1

FY201898.75%
4,162.4

FY2019Deposits from region
Ratio of deposits from region

86.04%

86.58%

85.15%

85.44%

2,947.1

3,005.1

3,010.5

3,062.5

FY2016FY2017FY2018FY201917.1

12.1

Loans to region
Ratio of loans to region

Assets in custody from region

Non-performing loans

Non-consolidated(¥ billion)

Non-consolidated(¥ billion)

821.9

827.2

775.8

11.4

743.0

38.3

31.4

1.81%

1.71%

12.8
FY2016FY2017FY2018FY201911.4

FY201617.0
FY2017

32.7
1.98%
20.9

FY2018

31.6

1.98%
27.9

FY2019Bankrupt and quasi-bankrupt assets (unrecoverable claims)
Claims on potentially bankrupt borrowers
Substandard loans
Ratio of loans subject to mandatory disclosure ofclaims under the Financial Reconstruction Law* “Region” refers to Saitama Prefecture and the areas bordering the prefecture which are a part of the economic and local-living sphere(the Kumegawa Branch, Itabashi Branch, Ikebukuro Branch, and Goka Branch sales areas).
12ESG/SDGs Initiatives
The Bank proactively embraces Environmental, Social, and Governance (ESG) perspectives in regard to its management, andfocuses on initiatives that take sustainability into consideration. With a view to embedding these initiatives more deeply andmaking an even greater contribution to the region, we have formulated the Musashino Bank Sustainable Development Goals
Declaration. Guided by this declaration, we will continue to make efforts towards realizing sustainable local communities while
responding to our stakeholders.

Musashino Bank Sustainable Development Goals Declaration
The Musashino Bank Group declares that all of its officers and employees will strive to contribute to achieving the objectives of the Sustainable Development Goals (SDGs).
• To contribute to the sustainable development of the regional economy, the Bank always exercises its
financial intermediary functions and commitment to customer-oriented business operations.
•To contribute to the creation of a sustainable community including industry and employment, urban development and livability, the Bank engages in partnerships with various bodies, including municipal governments, companies and NPOs.
• The Bank regards issues such as climate change and human rights as having a direct effect on it, and seeks global sustainability.

Vision for the Bank (Key Areas)
Corporate Governance as the Source ofSustainable Growth

A Society in Which People Can Live Their
Own Way for as Long as They Wish

The Bank positions corporate governance as the source of sustainable growth, and aims to conduct steadfast bank management
grounded on its management philosophy, which has remained
unchanged since its founding. (Corresponding SDGs: 16 and 17)

The Bank will actively work to create a society in which
all people can live in their own way, healthily and happily.
(Corresponding SDG: 3)

Sustainable Regional Economy
The Bank will promote innovation in local industry and local
production for local consumption, as well as contributing to
the development of comfortable, strong towns and working
to realize sustainable economic growth. (Corresponding
SDGs: 8, 9 and 11)

Responding to Climate Change, Maintaining
and Increasing Biodiversity
The Bank will respond to global climate change and makeefforts to maintain and improve the rich local biodiversity.
(Corresponding SDGs: 13 and 15)

Specific Initiatives• The Bank will work through investment and loans to encourage sustainable corporate conduct among business partners.
• The Bank will build a platform for industry revival and regional revitalization.
• The Bank will take steps to revitalize towns and suburban residential areas, and promote interest in sightseeing in the uplandareas, etc.
• The Bank will implement health and productivity management.
• The Bank will focus on improving the financial literacy of customers of all ages.
• The Bank will lead efforts to pass on Saitama Prefecture’s abundant biodiversity to the next generation.
13

Initiatives for Regional Revitalization
In addition to assisting initiatives by local government,
the Bank works with government, corporations, NPOs,
educational institutes, and other relevant people to solve
various local issues and to create new value. We will make aconcerted effort regarding the government’s “comprehensive
strategy for towns, people, and job revitalization.”
In August 2019, the Bank newly formed the Regional
Revitalization Consortium as a collaboration platform.

Alliances and Partnerships with Local
Government Organizations, Etc.
Prefectures

Saitama Prefecture

Designated Municipalities

Saitama City

Municipalities
Yokoze Town
Kasukabe City
Kitamoto City
Fujimi City

Tsurugashima City
Gyoda City
Konosu City
Yorii Town
Kawagoe City

Toda City
Kumagaya City
Hasuda City
Ogano Town		
Fujimino City

Initiatives for PPP and PFI
Against the backdrop of a declining population, we are also working to improve public services that utilize PPP and PFI schemes,
and to support the creation of private-sector business opportunities, for the matters with which local government organizations are
involved, including the improvement of community services, andthe maintenance and administration of public facilities.

Regional Revitalization through Tourism
Based on an industry-academia collaboration agreement with
Rikkyo University, the Bank is implementing a project to promote
regional revitalization through tourism in Saitama Prefecture. In
September 2020, the project put the spotlight on Chichibu, oneof Saitama Prefecture’s leading sightseeing destinations. It createda map highlighting a little-known local sightseeing resource: theChichibu pilgrimage (fudasho) sites. Prepared based on the fresh
insights and perspectives of university students, the publication
has been well received as an innovative sightseeing map for the
Chichibu area.

Promoting the Development of Industry by
Uncovering Local Resources
Since 2014, the Bank has been working to revive wheat production in Saitama City and to promote the development of industry
by making use of this wheat. The Bank has carried out activities
such as creating prototypes of products made with locally grown
wheat. In September 2020, a craft beer productmade with wheat harvested in June 2020 was
successfully completed in cooperation with alocal brewery in Saitama City. The craft beer
product is expected to help stimulate local
personal consumption.

Environmental Initiatives
Initiatives to Preserve the Environment
through Our Main Business
The Bank handles a large number of environment-related
products, and conducts investment and financing for projects
that contribute to sustainability, such as issuing Green Bonds(Daiwa Securities Group Head Office) and Sustainability
Finance (Japan Railway Construction, Transport andTechnology Agency).

Environmentally Conscious BranchManagement
The Bank continuously strives to develop branches andoffices that reflect consideration for biodiversity and otherenvironmental priorities. Notably, native plant species
formerly found in the local area are planted around administrative offices, among other locations.
The Bank is currently constructing its new Head Office.
Plans call for the building to offer excellent environmental
performance, while reflecting biodiversity considerations.
Additionally, in order to reduce CO2 emissions, we haveintroduced electric vehicles into our Head Office sales vehicle
fleet, in addition to making use of the Toyota Mirai, a nextgeneration fuel cell electric vehicle.

Collaboration with Local Companies
We use business cards and novelty items made with a special
material containing eggshells. This material was developed bya local company. The use of this material helps to reduce theCO2 emissions generated during the disposal of eggshells.

Supporting Efforts to Promote Greening
The Musashino Green Fund public trust has provided ¥71
million in assistance in total to 295 environmental organizations since its creation in 1992, proactively supporting
greening activities in Saitama Prefecture.
14

Environmental Education for Employees
Each year, the Bank conducts natural environment preservation activities such as removing invasive plant species from
the Mitsumata-numa Biotope along the Arakawa River incollaboration with Ecosystem Conservation Society – Saitama
and the Arakawa Citizens Environmental Supporters.

Other Initiatives
Initiatives to Improve Financial Literacy
The Bank actively provides financial literacy classes andworkplace experiences where participants can learn about theimportance of money and the role of banks in society.

Diversity Initiatives
Allowing diverse human resources of all genders and ages toadvance and participate increases the competitive capabilities
of a company and creates a source of new value creation.
Based on this idea, the Bank has formulated the Basic Policy
Regarding Promotion of Advancement and Participation
by Human Resources and the long-term vision relating topromoting participation by human resources. Guided bythese, we will focus on promoting the advancement andparticipation not only of women, but also of people withdisabilities and seniors (career veterans).

Promoting Women’s Participation andAdvancement
The Bank has formulated an action plan based on the Act
on Promotion of Women’s Participation and Advancement.
Initiatives to support women’s career advancement include
overseas observation and training and joint management
skills seminars held with Chiba Bank.
Ratio of female managers

14.3%

19.2% 19.4%

25.0%

FY2015 FY2018 FY2019 FY2022

Ratio of men taking childcare
leave
100%
100%

Average length of service forwomen
13 years
11.5 years
9.5 years

FY2015 FY2018 FY2019 FY2022

Ratio of annual paid leave
used

65%

71.9%
24.2%
FY2018FY2019FY2022

12.1 years

29.4%

31.3%

FY2015 FY2018 FY2019 FY2022

Creating a Society Where Diverse Human
Resources Can Participate
The Musashino Harmony Co., Ltd. is a special subsidiaryestablished with the goal of increasing opportunities forpeople with disabilities to play a role. The company currently
has six employees and its operations include printing businesscards and making novelty items. We will strive to create aworkplace that is motivating for all employees by enablingthem to use their special talents and providing solid support.

Musashino SDGs Private-Placement Bond
“Mirai no Chikara”
We are offering the “Musashino SDGs Private-Placement
Bond” which contributes to creating a sustainable regional
community. Together with local companies, we aresupporting organizations working to achieve SDGs such as
educational institutions and NPOs.

Promotion of Culture, Art, and Sports
We are working to promote music, drama, and other aspectsof culture and the arts with a view to stimulating local society
and raising healthy children.
We are making an effort to promote sports. We support
locally based sports teams, including the OMIYA ARDIJA
J.LEAGUE (Japan Professional Football League) team, theSaitama Seibu Lions professional baseball team, and the
Koshigaya Alphas professional basketball team; and we also
provide support for local athletes.

Measures to Address Coronavirus Disease2019 (COVID-19)
The Bank is working to prevent the spread of COVID-19
to its customers and employees, while continuing toprovide financial services essential to daily life, such as thesettlement of funds and withdrawal of deposits.
Moreover, the Bank has set up emergency consultation
desks at all branches for an indefinite period and strives
to supply funds efficiently to customers whose businesses have been affected by the COVID-19 pandemic.
Concurrently, the Bank provides referrals to public
assistance systems and support for the application process,and implements measures to facilitate business modeltransformation, including the adoption of e-commercebusiness and remote work.
15

Corporate Governance
Enhance Management Oversight Systems

Management Advisory Committee

Musashino Bank recognizes that upgrading and expanding
its corporate governance capabilities are key priorities ofmanagement. In addition to adhering strictly to a policyof compliance with statutory and regulatory requirements
as well as in-house rules and regulations, every effort ismade to ensure that the Board of Directors and the Boardof Corporate Auditors stringently monitor directors in theexecution of their duties. Three outside directors and threeoutside corporate auditors with abundant knowledge andexperience have been selected to monitor and audit directors
in the execution of their duties. They also take part inmeetings of the Board of Directors where they are able toproactively voice their opinions and offer advice on management from a broad, independent and neutral perspective.
This ensures that the management monitoring function isboth objective and impartial.

The Management Advisory Committee was established as anadvisory function to the Board of Directors. The committee
is made up of seven people: three outside directors, including the committee chair, two external experts (the Bank’s
independent outside corporate auditors), and two internal
directors. It deliberates on matters related to the selection,
dismissal, and remuneration of directors. The Board of
Directors reflects the deliberations of the committee in its
decision-making.

Corporate Governance Structure (As of June 30, 2020)

General Meeting of Shareholders
Assignment

Management
Advisory
Committee

Assignment

Inquiry
Audit

Board of Directors
Directors

Board of Corporate Auditors
Corporate auditors

ReportSupervision

Discussion
Discussion

Assignment

ReportBusiness execution functions
Executive Committee

Indication/
Verification
Compliance Committee

Audit

Accounting auditors

Executive officers

Head office/Branches

16

Audit

AdviceAuditing Division

Law officeLicensed tax accountants

Compliance
Compliance Framework
The social and public mission of the banking business makes
high demands for operations based on fair and transparent
corporate activities in compliance with laws, regulations,and social norms and in accordance with the principles ofself-discipline and self-responsibility. Accordingly, the Bank
considers the thorough compliance of its directors andemployees in business operations to be a top priority, and to
this end management is actively involved in the fulfillmentof the Bank’s social and public mission as the Bank works
to strengthen its compliance framework through steps suchas system improvements and the establishment of teaching
methods.
In the future the Bank will further strengthen its corporate
activities based on a strong sense of ethics and integrity andits management approach in accordance with principles ofself-responsibility as it further strengthens the complianceframework so that the Bank’s daily business activities andactions ensure compliance with laws, regulations, and social
norms.

Basic Compliance Policy
Musashino Bank’s basic compliance policy entails that officers
and employees go about their daily duties in accordance with
the Bank’s two fundamental management guidelines, namely
its Corporate Philosophy and Code of Behavior.
Under its unwavering Corporate Philosophy, the Bank
strives to work in harmony with the local community it
serves while maintaining a deep respect toward customers.
As a local bank in Saitama Prefecture, we continue tocontribute to the local community and society. Furthermore,
the Code of Behavior is founded on “the public mission of
the Bank” and stipulates “provision of high-quality financial
services,” “compliance with laws, regulations, rules, etc.,”“open business management through communication withsociety,” “respecting the personalities of employees,” “tacklingenvironmental problems,” “tackling social contribution
activities,” and “resolute responses to anti-social forces,” anddirectors and employees go about their daily duties guided bythese basic policies.

Compliance Management Structure
The Legal Affairs Office of the Risk Management Division
serves as the compliance management department for the
Bank. This office undertakes the uniform management of alllegal issues relating to compliance while providing instructions based on investigation and research. At the same time,
the office coordinates with officers responsible for legal compliance appointed to all branches while working to strengthen
the compliance structure. Regular meetings are held with theofficers responsible for legal compliance appointed to eachbranch in order to improve the level of compliance throughthe sharing of information and training, and meetings arealso held each month with the officers responsible for legal
compliance in the head office and each department. Thesemeetings serve as a forum to deliberate on compliance issues
and to share information.
In addition to the aforementioned, periodic compliancechecks are undertaken at each branch by the officers responsible for legal compliance. In this manner, the Bank has put
in place a mechanism that is capable of grasping the status ofdaily compliance management.
Furthermore, Musashino Bank has established theCompliance Committee with the president of the Bank serving as the chairperson, which serves as the organization thatchecks the status of compliance on a Bank-wide basis whileconsidering any and all other important matters throughregular meetings. In addition, the committee evaluates andchecks on the progress and implementation status of the“Compliance Program” approved by the Board of Directors.

Compliance ManualTo ensure the compliance of its officers and employees, theBank has distributed a compliance manual that has been
approved by the Board of Directors to all of its officers andemployees and is working to ensure that all staff members are
fully aware of its contents.
The compliance manual contains sections on the Bank’s
Corporate Philosophy, Code of Behavior, and basic policies.
It contains a section on compliance standards that stipulates
the matters officers and employees should comply with, asection on the compliance framework that provides an explanation on various structures at the Bank including educationand verification structures, a section on laws and regulations
that require directors’ and employees’ compliance, and whichcontains an explanation of the laws and regulations that Bank
employees are required to be knowledgeable of, and a pick-up
compliance section that provides a more detailed explanationof the matters that should be prioritized in the conduct ofdaily work. The compliance manual serves as a standard formaking decisions and taking actions in everyday businessactivities.

Money Laundering—Countermeasures against
Anti-Social Forces
The Bank has positioned prevention of money launderingand financing of terrorism as important issues in its management strategy. We strive to implement countermeasuresagainst money laundering and to eliminate anti-social forces,
while working to build control structures to help withprevention through basic policies.
In addition, we provide ongoing training for all employees
to help ensure that everyone is aware of relevant laws andregulations, and takes appropriate operational measures.

17

Risk Management
Risk Management Policy
As the risks associated with banking operations become
increasingly varied and complex, the Bank has formulated
a set of internal management policies that take into consideration the Bank’s strategic targets, in order to ensure thatthe manner in which it manages its business is both soundand pertinent. Guided by these policies, the Bank works
diligently to manage risk.
In specific terms, the Bank classifies all pertinent risks
according to their nature and attributes. Classifications
comprise (1) comprehensive risks; (2) credit risks; (3) market
risks; (4) liquidity risks; and (5) operational risks (including
administrative and system risks). These individual risks arethen managed according to their particular characteristics andrequirements.

Management Structure by Type of Risk
(1) Comprehensive Risk Management
In order to appropriately manage the wide variety of risks
on a comprehensive basis, the Bank has established theComprehensive Risk Management Department and is working to develop and improve its management structure. The
Comprehensive Risk Management Department puts in placerules and criteria for determining the scope of comprehensive
risk management, management methods, evaluation of new
products and operations as well as the level of acceptable risk
after taking into consideration management strategies, management capacity as well as business scale and characteristics.
Based on these rules and criteria the ALM (Asset Liability
Management) and other appropriate committees monitor andcontrol risks. The results of these activities are reported to theBoard of Directors and other relevant bodies on a regular basis.

(2) Credit Risk Management
Musashino Bank has historically taken steps to maintain the
independence of the Credit Division and to build a stringent
screening and management structure in order to maintainand strengthen the soundness of its assets. At the same time,
the Bank has adopted a ranking system and endeavored to
upgrade and expand its credit risk management capabilities asa part of its efforts to establish objective decisions and lending policies on an individual transaction counterparty basis.

(3) Market Risk Management
Musashino Bank has established the Market Risk
Management Department in order to appropriately manage
market risks. Relevant steps are taken to ensure the independence of the department from the Market Management
Department and Business Promotion Division, and to establish and develop a structure that is capable of harnessing thechecks-and-balances function. At the same time, the ALM
and Credit Portfolio Management Committees deliberate as
and when required.

(4) Liquidity Risk Management
Musashino Bank has established the Liquidity Risk
Management and Cash Management Departments in order
to appropriately manage liquidity risk. While ensuring
the independence of the Liquidity Risk Management
18

Department from the Cash Management Department,
Market Management Department and Business Promotion
Division, every effort is made to establish and develop
a structure that is capable of harnessing the checks-andbalances function. At the same time, the ALM Committee
deliberates as and when required.

(5) Operational Risk Management
Musashino Bank confronts broad and varied operationalrisks. In addition to classifying risks as (i) administrative risk,(ii) systems risk, and (iii) other operational risks (a. legalrisk, b. human risk, c. tangible asset risk, and d. reputationrisk), putting in place rules on an individual risk basis andpromoting the management of each risk by the appropriate
management department, the Bank has established the
Operational Risk Management Department to undertake themanagement of operational risks on a comprehensive basis.
The Bank also pushes forward measures aimed at establishingand developing a management structure that is capable ofharnessing the checks-and-balances function with respect
to each business division. Moreover, the Operational Risk
Management Committee deliberates on issues as and whenrequired.

Crisis Management/BCP Framework
The Bank has established a Business Continuity Plan (BCP)as part of its contingency planning to ensure operations
will continue in case of events such as a major earthquake,system disruption, or outbreak of pandemic influenza. The
Bank has compiled manuals that establish concrete codes of
behavior and countermeasures. In parallel, the Bank holds
systematic drills to improve the responsiveness and awarenessof all executives and employees. Additionally, the Bank
makes improvements to address issues it identifies and related
matters, as part of efforts to further increase the effectivenessof the BCP.
In response to the current coronavirus pandemic, the Bank
set up an Emergency Response Headquarters immediately,in order to maintain financial intermediary functions as
an essential service that is vital to people’s daily lives. We
have swiftly implemented response measures in line withconstantly changing conditions.

A Cyber Security Management Framework
We established the Cyber Security Management
Subcommittee as a CSIRT within the Bank, with the aimof ensuring a highly effective cyber security framework that
includes trying to prevent any impact from the occurrence ofcyber attacks, and minimizing the damage and achieving an
early-stage recovery if there is any. We are developing diverse
activities for normal times and for emergencies (if someincident occurs).
*CSIRT: Computer Security Incident Response TeamA general term for teams responsible for cyber security management within an organization. At the Bank, the Cyber Security
Management Subcommittee and its secretariat are CSIRTs.

Consolidated Balance Sheets
The Musashino Bank, Ltd. and Consolidated Subsidiaries As of March 31, 2020 and 2019

Thousands of
U.S. Dollars*
2020

Millions of Yen
2020
2019

AssetsCash and due from banks����������������������������������������������������������������������
Monetary claims bought������������������������������������������������������������������������
Trading account securities���������������������������������������������������������������������
Money held in trust�������������������������������������������������������������������������������
Securities�����������������������������������������������������������������������������������������������
Loans and bills discounted��������������������������������������������������������������������
Foreign exchanges���������������������������������������������������������������������������������
Lease receivables and investment assets��������������������������������������������������
Other assets�������������������������������������������������������������������������������������������
Tangible fixed assets������������������������������������������������������������������������������
Buildings, net�����������������������������������������������������������������������������������
Land�������������������������������������������������������������������������������������������������
Lease assets���������������������������������������������������������������������������������������
Construction in progress�������������������������������������������������������������������
Other tangible fixed assets����������������������������������������������������������������
Intangible fixed assets����������������������������������������������������������������������������
Software��������������������������������������������������������������������������������������������
Lease assets���������������������������������������������������������������������������������������
Other intangible fixed assets�������������������������������������������������������������
Net defined benefit asset�����������������������������������������������������������������������
Deferred tax assets���������������������������������������������������������������������������������
Customers’ liabilities for acceptances and guarantees�����������������������������
Allowance for loan losses�����������������������������������������������������������������������
Total assets�����������������������������������������������������������������������������

¥  374,688¥  347,398$ 3,442,874

510

12,634

4,686

48

62

441

1,494

1,490

13,728624,140

654,380

5,735,000

3,571,715

3,522,130

32,819,213

5,191

2,560

47,698

21,103

21,320193,908

35,043

34,473321,998

42,22436,767

387,981

8,843

9,584

81,25525,36325,322233,052

20

24

184

6,391

347

58,725

1,605

1,488

14,748

4,375

3,910

40,200

4,068

3,656

37,379

104

80

956

201

173

1,847

5,341

6,732

49,077

3,218

1,004

29,569

4,795

4,200

44,060(19,831)(23,023)(182,220)¥4,674,059¥4,626,044$42,948,259

19Thousands of
U.S. Dollars*
2020

Millions of Yen
2020
2019

Liabilities
Deposits������������������������������������������������������������������������������������������������
Negotiable certificates of deposit�����������������������������������������������������������
Call money and bills sold����������������������������������������������������������������������
Payables under securities lending transactions���������������������������������������
Borrowed money�����������������������������������������������������������������������������������
Foreign exchanges���������������������������������������������������������������������������������
Borrowed money from trust account�����������������������������������������������������
Other liabilities�������������������������������������������������������������������������������������
Provision for bonuses����������������������������������������������������������������������������
Provision for directors’ bonuses�������������������������������������������������������������
Net defined benefit liability�������������������������������������������������������������������
Provision for directors’ retirement benefits��������������������������������������������
Provision for loss on interest repayment������������������������������������������������
Provision for reimbursement of deposits������������������������������������������������
Provision for point card certificates�������������������������������������������������������
Provision for contingent loss�����������������������������������������������������������������
Provision for share-based compensation������������������������������������������������
Allowance for demolition of non-current assets�������������������������������������
Deferred tax liabilities���������������������������������������������������������������������������
Deferred tax liabilities for land revaluation��������������������������������������������
Acceptances and guarantees�������������������������������������������������������������������
Total liabilities������������������������������������������������������������������������
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������������������������������������������������������������������
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�������������������������������������������������

¥4,210,049¥4,125,430$38,684,637

133,830

157,430

1,229,716

30,42230,522

279,537

16,137

21,151

148,277

11,89010,933

109,253

358

199

3,290

1,043

—

9,584

19,95424,519183,350

1,133

1,148

10,411

11

9

101

3,452

3,542

31,719

39

30

358

52

44

478

366

493

3,363

88

85

809

256

198

2,352

60

67

551

329

611

3,023

99

1,983

910

4,227

4,227

38,840

4,795

4,200

44,0604,438,601

4,386,830

40,784,719

45,74345,743

420,316

38,352

38,291

352,403

136,947

131,563

1,258,357

(909)

(906)

(8,352)

220,133

214,692

2,022,724

10,543

18,391

96,876(1,454)(1,453)(13,360)

8,286

8,286

76,137(2,122)(1,087)(19,498)

15,25324,137140,154

47

66

432

23

318

211

235,458

239,2142,163,539¥4,674,059¥4,626,044$42,948,259* U.S. dollar figures have been translated at the rate ¥108.83 to U.S.$1, the prevailing market rate as of March 31, 2020.

20

Consolidated Statements of Income and Comprehensive Income
The Musashino Bank, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 2020 and 2019

Consolidated Statements of Income

Millions of Yen
2020
2019

Ordinary income���������������������������������������������������������������������������������
Interest income�������������������������������������������������������������������������������������
Interest on loans and discounts���������������������������������������������������������
Interest and dividends on securities���������������������������������������������������
Interest on call loans and bills bought�����������������������������������������������
Interest on deposits with banks���������������������������������������������������������
Other interest income ����������������������������������������������������������������������
Trust fees�����������������������������������������������������������������������������������������������
Fees and commissions���������������������������������������������������������������������������
Other ordinary income��������������������������������������������������������������������������
Other income����������������������������������������������������������������������������������������
Recoveries of written-off claims��������������������������������������������������������
Other������������������������������������������������������������������������������������������������
Ordinary expenses�������������������������������������������������������������������������������
Interest expenses������������������������������������������������������������������������������������
Interest on deposits���������������������������������������������������������������������������
Interest on negotiable certificates of deposit��������������������������������������
Interest on call money and bills sold�������������������������������������������������
Interest on payables under securities lending transactions�����������������
Interest on borrowings and rediscounts���������������������������������������������
Interest on bonds������������������������������������������������������������������������������
Other interest expenses���������������������������������������������������������������������
Fees and commissions payments������������������������������������������������������������
Other ordinary expenses������������������������������������������������������������������������
General and administrative expenses�����������������������������������������������������
Other expenses��������������������������������������������������������������������������������������
Provision of allowance for loan losses������������������������������������������������
Other������������������������������������������������������������������������������������������������
Ordinary profit������������������������������������������������������������������������������������
Extraordinary income��������������������������������������������������������������������������
Gain on disposal of non-current assets����������������������������������������������
Extraordinary losses����������������������������������������������������������������������������
Loss on disposal of non-current assets�����������������������������������������������
Other������������������������������������������������������������������������������������������������
Profit before income taxes�������������������������������������������������������������������
Income taxes—current��������������������������������������������������������������������������
Income taxes—deferred�������������������������������������������������������������������������
Total income taxes�������������������������������������������������������������������
Profit����������������������������������������������������������������������������������������������������
Profit attributable to non-controlling interests����������������������������������
Profit attributable to owners of parent�����������������������������������������������

¥67,852
38,87232,560
6,115
(25)
0
222
15
14,2091,836
12,918373
12,544
59,106
2,479
847
26
746
443
38
—
376
3,838
1,484
35,40015,902
4,164
11,738
8,745
1
1
15
15
—
8,732
1,054
(415)
638
8,094
27
¥ 8,066¥77,858
41,19333,176
7,794
(17)
0
240
—
13,856
1,892
20,915822
20,093
66,487
2,622
788
26
797
469
57
65
417
3,958
1,646
34,92323,337
11,831
11,505
11,371
1
1
455
15
439
10,917
5,905
(363)
5,541
5,376
31
¥ 5,345

Thousands of
U.S. Dollars*
2020$623,468
357,181299,182
56,189
(230)
0
2,040
138
130,561
16,870118,699
3,427
115,262
543,104
22,779
7,783
239
6,855
4,071
349
—
3,455
35,266
13,636325,278
146,118
38,262
107,856
80,355
9
9
138
138
—
80,235
9,685(3,813)
5,862
74,373248$ 74,116* U.S. dollar figures have been translated at the rate ¥108.83 to U.S.$1, the prevailing market rate as of March 31, 2020.

Consolidated Statements of Comprehensive Income
Profit�����������������������������������������������������������������������������������������������������
Other comprehensive income����������������������������������������������������������������
Valuation difference on available-for-sale securities���������������������������
Deferred gains or losses on hedges����������������������������������������������������
Remeasurements of defined benefit plans, net of tax�������������������������
Comprehensive income�������������������������������������������������������������������������
Comprehensive income attributable toComprehensive income attributable to owners of parent������������������
Comprehensive income attributable to non-controlling interests������

Millions of Yen
2020
2019

Thousands of
U.S. Dollars*
2020¥    8,094(8,883)(7,847)(0)(1,035)¥  (789)¥ 5,376(10,516)(10,361)(173)
18¥ (5,140)$ 74,373(81,623)(72,103)(0)(9,510)$ (7,250)¥  (817)27¥ (5,173)33$ (7,507)
248* U.S. dollar figures have been translated at the rate ¥108.83 to U.S.$1, the prevailing market rate as of March 31, 2020.
21

Consolidated Statements of Changes in Equity
The Musashino Bank, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 2020 and 2019
Millions of Yen
Shareholders’ equity

Balance as of April 1, 2018................................................
Changes of items during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Transfer to capital surplus from retained earnings��������
Purchase of shares of consolidated subsidiaries
treasury stock�������������������������������������������������������������
Net changes of items other than shareholders’ equity���Total changes of items during period���������������������������
Balance as of March 31, 2019...........................................
Changes of items during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Transfer to capital surplus from retained earnings��������
Purchase of shares of consolidated subsidiaries
treasury stock�������������������������������������������������������������
Net changes of items other than shareholders’ equity���Total changes of items during period���������������������������
Balance as of March 31, 2020...........................................

Capitalstock

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’ equity¥45,743¥38,291¥128,901¥(900)¥212,036(2,682)(2,682)

5,345

5,345
(6)

(0)

(6)

0

0

0

(0)

—

—

—

—

—

2,662

(6)

2,656

45,74338,291

131,563(906)

214,692(2,682)(2,682)

8,066
1
—

8,066
(42)

(42)

39

40

—

—

59

59

—

60

5,383

(3)

5,441

¥45,743¥38,352¥136,947¥(909)¥220,133

Millions of Yen
Accumulated other comprehensive income

22

Valuationdifference on
available-for-salesecurities

Deferred
gains orlosses onhedgesBalance as of April 1, 2018................................................ ¥ 28,754
Changes of items during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Transfer to capital surplus from retained earnings��������
Purchase of shares of consolidated subsidiaries
treasury stock�������������������������������������������������������������
Net changes of items other than shareholders’ equity��� (10,363)
Total changes of items during period��������������������������� (10,363)
Balance as of March 31, 2019........................................... 18,391
Changes of items during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Transfer to capital surplus from retained earnings��������
Purchase of shares of consolidated subsidiaries
treasury stock�������������������������������������������������������������
Net changes of items other than shareholders’ equity��� (7,847)
Total changes of items during period��������������������������� (7,847)
Balance as of March 31, 2020........................................... ¥ 10,543¥(1,279)

Total accuRevaluation Remeasurements mulated other Subscription
Nonreserve forof defined comprehensive rights tocontrolling
land
benefit plansincomesharesinterests¥8,286¥(1,105)¥ 34,655

¥ 66

¥ 285

Total net
assets¥247,043(2,682)
5,345
(6)
0
—
—

(173)

—

18

(10,518)—

32(10,485)

(173)

—

18

(10,518)—

32(7,829)(1,453)8,286(1,087)

24,13766

318

239,214(2,682)
8,066
(42)
40
—
59

(0)

—

(1,035)(8,884)

(18)

(294)

(9,197)(0)—(1,035)(8,884)

(18)

(294)

(3,755)¥(1,454)¥8,286¥(2,122)¥ 15,253

¥ 47

¥ 23

¥235,458

Thousands of U.S. Dollars*
Shareholders’ equity

Balance as of March 31, 2019������������������������������������������
Changes of items during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Transfer to capital surplus from retained earnings��������
Purchase of shares of consolidated subsidiaries
treasury stock�������������������������������������������������������������
Net changes of items other than shareholders’ equity���Total changes of items during period���������������������������
Balance as of March 31, 2020...........................................

Capitalstock

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’ equity$420,316$351,842$1,208,885$(8,325)$1,972,728(24,644)(24,644)

74,116
9—74,116
(386)

(386)

358

368

—

—

542

542

—

551

49,462(28)

49,995$420,316$352,403$1,258,357$(8,352)$2,022,724

Thousands of U.S. Dollars*
Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Deferred
gains orlosses onhedgesBalance as of March 31, 2019������������������������������������������ $168,988 $(38,160)
Changes of items during period:
Dividends of surplus����������������������������������������������������
Profit attributable to owners of parent�������������������������
Purchase of treasury shares�������������������������������������������
Disposal of treasury shares��������������������������������������������
Transfer to capital surplus from retained earnings��������
Purchase of shares of consolidated subsidiaries
treasury stock�������������������������������������������������������������
Net changes of items other than shareholders’ equity��� (72,103)(0)
Total changes of items during period��������������������������� (72,103)(0)Balance as of March 31, 2020........................................... $ 96,876 $(13,360)

Total accuRevaluation Remeasurements mulated other Subscription
Nonreserve forof defined comprehensive rights tocontrolling
land
benefit plansincomesharesinterests

Total net
assets$76,137$2,198,052$ (9,988)$221,786$ 606$ 2,922(24,644)
74,116
(386)
368
—
542
—

(9,510)(81,632)(165)(2,701)(84,508)—(9,510)(81,632)(165)(2,701)(34,503)$76,137$(19,498)$140,154$ 432$   211$2,163,539* U.S. dollar figures have been translated at the rate ¥108.83 to U.S.$1, the prevailing market rate as of March 31, 2020.

23

Consolidated Statements of Cash Flows
The Musashino Bank, Ltd. and Consolidated Subsidiaries For the Years Ended March 31, 2020 and 2019

Millions of Yen
2020
2019

Cash flows from operating activities
Profit before income taxes���������������������������������������������������������������������
Depreciation�����������������������������������������������������������������������������������������
Share of (profit) loss of entities accounted for using equity method�������
Increase (decrease) in allowance for loan losses��������������������������������������
Increase (decrease) in provision for bonuses�������������������������������������������
Increase (decrease) in provision for directors’ bonuses����������������������������
Decrease (increase) 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 loss on interest repayment���������������
Increase (decrease) in provision for reimbursement of deposits��������������
Increase (decrease) in provision for point card certificates����������������������
Increase (decrease) in provision for contingent loss��������������������������������
Increase (decrease) in provision for share-based compensation���������������
Increase (decrease) in allowance for demolition of non-current assets����
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 deposits���������������������������������������������������������
Net increase (decrease) in negotiable certificates of deposit��������������������
Net increase (decrease) in payables under securities lending transactions���Net increase (decrease) in borrowed money (excluding subordinated borrowings)����
Net decrease (increase) in deposits (excluding deposits paid to Bank of Japan)����������
Net decrease (increase) in call loans�������������������������������������������������������
Net increase (decrease) in call money����������������������������������������������������
Net decrease (increase) in foreign exchanges—assets������������������������������
Net increase (decrease) in foreign exchanges—liabilities������������������������
Net increase (decrease) in borrowed money from trust account�������������
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
Purchase of securities�����������������������������������������������������������������������������
Proceeds from sales of securities�������������������������������������������������������������
Proceeds from redemption of securities�������������������������������������������������
Decrease (increase) in money held in trust���������������������������������������������
Purchase of tangible fixed assets�������������������������������������������������������������
Proceeds from sales of property, plant and equipment���������������������������
Purchase of intangible assets������������������������������������������������������������������
Payments for asset retirement obligations����������������������������������������������
Net cash provided by (used in) investing activities�����������������Cash flows from financing activities
Increase (decrease) in subordinated borrowings�������������������������������������
Redemption of subordinated bonds�������������������������������������������������������Cash dividends paid������������������������������������������������������������������������������
Dividends paid to non-controlling interests�������������������������������������������
Purchase of treasury shares��������������������������������������������������������������������
Purchase of treasury shares of subsidiaries����������������������������������������������
Proceeds from sales of treasury shares����������������������������������������������������
Net cash provided by (used in) financing activities�����������������
Net increase (decrease) in cash and cash equivalents��������������������������Cash and cash equivalents at beginning of period������������������������������Cash and cash equivalents at end of period����������������������������������������

¥   8,732
2,870(7)(3,191)
(14)
1
(476)
(96)
9
8
(126)
3
58
(6)
(282)
(38,872)
2,479
(8)
3
1,123
13
13
(49,584)
84,619(23,600)(5,013)957
9,915
12,123(100)(2,630)158
1,043
40,021(2,596)(326)
37,219(6,509)30,710¥ 10,917
2,387
(11)
9,645
(61)
(1)
(466)
(269)
1
(15)
(158)
6
(21)
28
317
(41,193)
2,622(6,830)8(1,872)14
301(64,284)
94,512(5,990)(477)
217(10,174)(2,075)
8,334
2,391
(39)
—
41,752(2,583)(987)
35,946(4,617)31,328$   80,235
26,371(64)(29,321)(129)
9(4,374)(882)
83
74(1,158)28533(55)(2,591)(357,181)
22,779(74)
28
10,319119
119(455,610)
777,534(216,852)(46,063)
8,794
91,105111,394(919)(24,166)
1,452
9,584
367,739(23,854)(2,995)341,992(59,809)282,183(237,880)
32,422
223,679(9)(7,006)
13(1,661)
(114)
9,441

(187,262)
80,015
188,064(9)(775)
1(1,965)(14)
78,054(2,185,794)
297,9142,055,306(83)(64,376)119(15,262)(1,048)86,750——(2,682)
(0)
(42)
(262)
40
(2,947)
37,204
336,786¥ 373,991(5,000)(15,000)(2,682)(0)(6)—
0(22,689)
86,694250,092¥ 336,786——(24,644)(0)(386)(2,407)368(27,079)
341,854
3,094,606$3,436,470* U.S. dollar figures have been translated at the rate ¥108.83 to U.S.$1, the prevailing market rate as of March 31, 2020.
24

Thousands of
U.S. Dollars*2020

Directory
Organization Chart (as of October 1, 2020)
General Meeting of Shareholders

Board of Corporate Auditors

Corporate Auditors
OutsideCorporate Auditors

Board of Directors* and Representative Directors

Executive Committee
ChairmanPresident*

Senior Managing Directors*
Managing Directors
Outside Directors

General Planning and Management Division
Strategic Planning Office
Alliance Management Office
Digital Transformation OfficeFinancial Affairs Office
Tokyo Office
Risk Management Division
Legal Affairs Office
Customer Service Promotion Office
Personnel Division
Secretariat
Career Development Office
Health Support Office
Human Resources Activities Promotion OfficeBusiness Management Division
Business Planning Office
Assets in Custody Promotion Office
FinTech Promotion Office
Local Community Support Division
Community Value Creation Office
Solutions Marketing Division
Consulting Office
Credit DivisionCorporate Management Support OfficeInternational and Treasury Division
Global Business Advisory Office
Representative Office Registered in Singapore
General Affairs Division
Administration Division
Systems Management Office
Operation Services Division
Auditing Division

Board of Directors, Corporate Auditors and Executive Officers (as of July 1, 2020)
Chairman

Senior Managing Directors

Directors

Corporate Auditors

Executive Officers

Kikuo Kato

Kazuya Koyama
Toshiyuki Shirai

Emi Ishida (outside)
Takeshi Higuchi (outside)
Ryuichi Mitsuoka (outside)

Yoshio Kenmochi (standing)
Yuichi Tanaka (standing)Atsumu Kuroishi (outside)
Tomio Kezuka (outside)
Kenji Tamura (outside)

Ichiro Noda
Tadashi Uehara
Kazuhiro Wakabayashi
Takao Miyazaki
Manabu Okabe
Yutaka Amada

President

Kazumasa Nagahori

Managing Directors

Susumu Kurosawa
Ken Otomo

Managing Executive Officers

Masaharu Saito
Tsutomu Kainuma

Investor Information (as of March 31, 2020)
Number of Shares Held by Type of Shareholders

 uthorized: 80,000 thousand shares
A
Issued:33,805 thousand shares
Number of Shareholders 11,574
Common Stock

Financial institutions
44.73%

Other corporations
23.21%

Major Shareholders
NameJapan Trustee Services Bank, Ltd. (trust account)
The Master Trust Bank of Japan, Ltd. (trust account)
Japan Trustee Services Bank, Ltd. (trust account 4)
The Chiba Bank, Ltd.
Meiji Yasuda Life Insurance Company
The Bank of Mitsubishi UFJ, Ltd.
Musashino Bank Industries Employees’ Stockholding Association
Sumitomo Life Insurance Company
Japan Trustee Services Bank, Ltd. (trust account 5)
Maeda Glass Co., Ltd.
* Shareholding percentages are rounded down to two decimal places.

Shares held asa percentage of
total outstanding
shares (%)
2,828,900
8.43
1,864,900
5.56
1,242,400
3.70
925,000
2.75
735,858
2.19
727,587
2.16
703,692
2.09
702,900
2.09
598,500
1.78
576,900
1.72

Number ofsharesForeign companies
and others
13.86%
Individuals and others
17.02%

Financial instruments
business operators
1.18%

Notes: 1. Some treasury stock is contained in “Individuals and others.”
2. “Other corporations” includes a unit of 14 shares under the nameof Japan Securities Depository Center, Inc.

25

333-13, OLS Building, Sakuragi-cho 4-chome,
Omiya-ku, Saitama 330-0854
Phone: +81-48-641-6111

Brand Message

The Musashino Bank’s brand message is “More for You.”
The Bank personnel always ask themselves“What can I do for everyone?” and“What kind of service do I want to give everyone?”“Everyone” includes the Bank’s customers,
the members of local communities, our shareholders,and friends of the Bank, together with their families.
Accordingly, the Musashino Bank aspires to provide
everyone with better services and to contribute to
our local communities.