Financial Results for the Fiscal
Year Ended March 31st, 2024

May 24th, 2024

Nishi-Nippon Financial Holdings, Inc.

Reference Materials

Today’s Agenda

I. Financial Results
1. Overview of Financial Results
2.

II.

Page
2
3

Net Interest Income(Appendix) Impact of Rising Domestic Interest Rates on Earnings

45(1) Interest on Loans and Discounts (NCB)

6(2) Interest and Dividends on Securities (NCB)

7

3.
4.
5.

Fees and Commissions
ExpensesCredit Cost

8
9
10

6.

Financial Results Forecast

11

Management Strategies – Initiatives to Enhance Corporate Value 1. Local Market Environment in Kyushu/Fukuoka(1) Economic Outlook in Kyushu(2) Demographics in Fukuoka City and Its Vicinity(3) Development Trend in Fukuoka City and Its Vicinity
2.
3.

4.

Page
Economic Environment in Kyushu/Fukuoka

35 – 38

Supplementary Materials on Performance1.
Statement of Income
2.
Balance Sheet
Average Amount Outstanding, Yield,
3.
and Interest of Main Accounts
Balance and Valuation Gains or
4.
Losses of Securities

40
41 - 43
44 - 45

5.

Breakdown of Credit Cost by Cause

6.

Capital Adequacy Ratio

(NCB)

46

(NCB)

47

(NCB)

48

(Consolidated)

49

12
13
14
15

(4) Updates on Semiconductor-related Investments
Initiatives to Enhance Corporate Value

16
17
18

(Appendix) PBR, ROE, and Stock Prices

19

Providing Customer-Oriented “One to One Solutions”(1) Corporate Customers

20(2) Retail Customers
Sales Reform(1) Strengthening the Sales System

235.

(2) Digital Strategy(3) Work Reform
Human Resources Reform

6.

Sustainability Initiatives

7.

Capital Policy(1) Basic Approaches(2) Shareholder Returns(3) Reduction of Strategic Shares

Contents

25
26
27
28
30
31
32
33
Financial Results for the Fiscal Year Ended March 31st, 2024

P.1

I. Financial Results

I. Financial Results

Financial Results for the Fiscal Year Ended March 31st, 2024

P.2

1. Overview of Financial Results
 Profit attributable to owners of parent fell 2.5 billion yen year-on-year (YoY) to 23.6 billion yen, as an increase
in income from the main business including loans and fees and commissions was outweighed by the absenceof the gain on negative goodwill posted in the previous fiscal year* and an increase in interest on foreign
currency funding resulting from the rising US interest rate.

*Posted following the inclusion of Kyushu Leasing Service Co., Ltd. and City Ascom Co., Ltd. into the Group in October 2022.

■Profit and Loss (Consolidated)(100 million yen)FYE Mar. 31, 2024
A

FYE Mar. 31,
2023
B

A-B

Gross operating profit

1,098

16

1,082

(Core gross operating profit)

1,206

20

1,186

Net interest income

910

(27)

937

Fees and commissions

240

29

211

Trading income

10

(4)

14

Other operating income

(63)

18

(81)

(108)

(4)

(104)

802

22

780

296

(5)

301

(Core business profits)

404

(2)

406

Gains (losses) on equity securities

153

131

22

Credit cost

66

27

39

Other extraordinary gains (losses)

(26)

(79)

53

356

19

337

Extraordinary profit (loss)

(8)

(12)

4

Income taxes
Profit attributable to non-controllinginterest

106

29

77

6

2

4

236

(25)

261

(of which, net gains (losses) related
to bonds)
Expenses
Net business profits

Ordinary profit

Profit attributable to owners of parent

I. Financial Results<Profit attributable to owners of parent: Variance Factors YoY>
Capital gains(losses) on
securities*⇒ P.7

Fees andcommissions⇒ P.8(100 million yen)
*Gains (losses) related to bonds+ gains (losses) on equity securities

(22)

⇒ P.9

Expenses(27)⇒ P.10Credit cost

(27)

(105)

⇒ P.4

Other

Net interest
incomeA significant increase in interest on
foreign currency funding
outweighed an increase in interest
on loans and discounts

Mainly due to the absence ofnegative goodwill (8.5 billion
yen) posted in the previous
period and an increase inincome taxes (3.0 billion yen)Mar. 31, 2024

Mar. 31, 2023

■Profit and Loss (NCB)FYE Mar. 31, 2024
A(100 million yen)FYE Mar. 31,
2023
B

A-B

Gross operating profit

883

(5)

888

Expenses

665

14

651

Net business profits

218

(19)

237

Credit cost

53

20

33

279

75

204

188

43

145

Ordinary profit
Profit attributable to owners ofparentFinancial Results for the Fiscal Year Ended March 31st, 2024

P.3

2. Net Interest Income
 Net interest income for the fiscal year ended March 31st, 2024 shrank by 2.7 billion yen YoY to 91.0 billion
yen mainly due to an increase in interest on foreign currency funding, despite increases in interest on loans
and discounts and interest and dividends on securities.
 Net interest income for the fiscal year ending March 31st, 2025 is expected to rise by 7.3 billion yen YoY to98.3 billion yen.
■ Changes in net interest income (by factors)

Mar. 31, 2023 ⇒ Mar. 31, 2024

Mar. 31, 2024 ⇒ Mar. 31, 2025 [Forecast](100 million yen)(100 million yen)

Balance of net interest +25

Balance of net interest +22

(1)

(128)

Mainly due torising US interest
rates

(27)

(27)
(1)

(42)

Reflects
smallerbalance of
foreign bondsand expected
fall in US
short-term
rates

Other

Interest on foreign
currency funding⇒ P.6

Interest on dividends
on securities

Mar. 31,2024

Interest on deposits andnegotiable certificates ofdepositMar. 31,2024

Interest on loans
and discounts

Other

⇒ P.7

Interest on foreign
currency funding

I. Financial Results

Interest on dividends
on securities⇒ P.6

Interest on deposits andnegotiable certificatesof deposit

Interest on loans
and discounts

Mar. 31,2023

Increase ininterest on
deposits withbanks, etc.

Mar. 31,
2025

⇒ P.7

Financial Results for the Fiscal Year Ended March 31st, 2024

P.4

<Appendix> Impact of Rising Domestic Interest Rates on Earnings
 The rise in market interest rates against the background of the change in the Bank of Japan’s

monetary policy and other factors is expected to have a positive impact on our performance,
mainly through the expansion of the loan-to-deposit spread.

- Approximately 60% of the Nishi-Nippon City Bank’s loans and discounts are floating interest rate loans, andthe bank’s loan-deposit ratio is 80%, which is higher than the regional bank average. Due to this balance sheet
structure, the bank will enjoy greater benefit from the rise in market interest rates.

■ The Nishi-Nippon City Bank’s loan and deposit portfolio (as of Mar. 31, 2024)
Ratio of floatinginterest rate
61％

Remaining maturity of fixed-rate
loans

Linked tomarket interest
rates
22％

Fixed interest
rates
Loans and39％
discounts

Over 5 years
22％

Approx.
8 trillion yen

3-5 years
27％(Excluding loans to MOF)

Less than
1 year17％
1-3 years
34％

Large deposits
/ NCD
11％
Small, fixed-term
Deposits
deposits
14％
Approx.

10 trillion yen

Liquid75％

Linked to shortterm prime rates
39％<Loan-deposit ratio>

Nishi-Nippon CityBank
Regional bankaverage*<Ratio of floating rate loans>

80 %
72 %

* Calculated from data published by the
Regional Banks Association of Japan (as of
Sept. 30, 2023)

I. Financial Results

Nishi-Nippon CityBank
Major regionalbank average*

61 %
54 %

*Average of nine banks that disclose the above
ratio in their IR data (for first half of FY2023),
etc. among the largest 15 banks based on total
assets■ Estimated impact of a rise in market interest rates on earnings (forloans and deposits denominated in yen)
 Impact of a 0.1% rise in market interests
Approx.
billion yen
on net interest income in a year

成⾧投資

＋3.0

(approx. +5.0 billion yen incl. impact of interest on money deposited in BOJ’s
current account [+2.0 billion yen])

Premises of the above calculation・Rises in market interest rates are immediately reflected without considering interest renewal timing.
(Pass-throughs of market rate changes are projected as 60% for loans/discounts and 20% for deposits.)
・The above estimate assumes the same change in short-term prime rates. The impact without the short-term prime
rate change is approx. +2.0 billion yen.)

Financial Results for the Fiscal Year Ended March 31st, 2024

P.5

2. Net Interest Income (1) Interest on Loans and Discounts (NCB) Interest on loans and discounts for the fiscal year ended March 31st, 2024 increased by 2.6 billion yen YoY to79.9 billion yen on the back of solid growth of business loans and personal loans.
 Interest on loans and discounts for the fiscal year ending March 31st, 2025 is expected to grow by 4.8 billion
yen YoY to 84.7 billion yen, given the ongoing trend of loan balance increases and the expected rise in yield.
■ Interest and yield on loans and discounts■ YoY changes in interest on loans and discounts(100 million yen)Interest

Yield (excl. loans to MOF)

(100 million yen)

Business loans

Yield

Loans

■ Loans and discounts (on an average amountoutstanding basis) (Excluding loans to MOF) (100 million yen)
Business loans

Total(Excluding loans to MOF)

Loans
ローン

[Annual rate]

(3)

(18)
Mar. 2021

Mar. 2022

Mar. 2023

Mar. 2024

Mar. 2025

Forecast

Mar. 2021

(10)

(6)

(13)
Mar. 2022

Mar. 2023

Mar. 2024

Forecast* Average balance of loans to MOF (Not included in above business loans)Mar. 2022
4,845

2,863

Mar. 2025

Mar. 2024

Mar. 2021

4,322

I. Financial Results

Mar. 2023

Mar. 2025

Forecast

6,635

Financial Results for the Fiscal Year Ended March 31st, 2024

6,082

P.6

2. Net Interest Income (2) Interest and Dividends on Securities (NCB) Interest and dividends on securities for the fiscal year ended March 31st, 2024 increased by 7.5 billion yen
YoY to 28.0 billion yen, mainly due to increases in interest on foreign securities and gains on investment trust
cancellations.
 Interest and dividends on securities for the fiscal year ending March 31st, 2025 is expected to decrease by 4.1
billion yen YoY to 23.9 billion yen.
■ Interest and dividends on securities and yields
Domesticbonds

Foreignsecurities

Stocks, investment
trusts, etc.
1.62%(100 million yen)
Yield

Domestic
bonds

0.80%

0.77%

Foreignsecurities（100 million yen)

Stocks, investment trusts, etc.

Domesticbond
Duration

1.32%

1.12%

■ Balance of securities(on an average amount outstanding basis)

Foreignbondduration（+31）

Figures in theparentheses show
gains/losses oninvestment rustcancellations

（ー）
（-2）

（-1）

（-7）

Mar. 2021
Mar. 2021

Mar. 2022

Mar. 2023

Mar. 2024

Mar. 2025
Forecast

Mar. 2024

Mar. 2025
Forecast■ Gains (losses) on valuation of securities(Net gains (losses) related to bonds, gains (losses) on equity securities)(100 million yen)Mar. 2021

Mar. 2022

Mar. 2023

Mar. 2024

Net gains (losses) related to bonds

28

10

(104)

(108)

Gains (losses) on equity securities

19

(7)

25

146

Total

47

3

(79)

38

Loss posted mainly due to the sale of low yield foreign bonds

I. Financial Results

Mar. 2023<End-of-period balance of USD-denominated bonds (in million US dollars)>
Balance declined
2,223
2,657
2,869
2,350
due to selling■ Capitals gains (losses) on securities(100 million yen)Mar. 2022

Domestic bonds
Foreign securities
Investment trusts, etc.
Stocks
Total

Mar. 2021

Mar. 2022
Mar. 2023
Mar. 2024
8
(91)
(213)
(368)

71
97
722
898

(107)
133
577
512

(214)
108
643
324

Financial Results for the Fiscal Year Ended March 31st, 2024

(186)
260
847
553
P.7

3. Fees and Commissions
 Fees and commissions for the fiscal year ended March 31st, 2024 increased by 2.9 billion yen YoY to 24.0
billion yen, mainly due to increases in corporate customer-related fee income and client assets-related fee
income at the bank and a securities subsidiary.
 Fees and commissions for the fiscal year ending March 31st, 2025 are expected to increase by 0.2 billion yen
YoY to 24.2 billion yen.
■ Fees and commissions (Consolidated) / (NCB)
NCB

Kyushu Card

NCB R&C

Other subsidiaries

209

211

31

33

4
18

4
16

190
29
3
17

(100 million yen)

NCTT Securities(NCB Breakdown)
240

242

34

33

4

4

27

27

57
55

60

56

■Other income■Domestic exchange, ATM, account transfer■Corporate customer-related■Client assets-related■Fees and commissions payments
Fees and commissions
118
102
101
285
84
31

280
26

131

130

70

62

48

53

62

147

151

167

162

153

147

151

167

162

Mar. 2021

Mar. 2022

254

25

248
26

135

130

128

34
43

41

50

50

153

237

28

57

84

Mar. 2021

101

Mar. 2022

102

Mar. 2023

118

Mar. 2024

118

Mar. 2025

118

Mar. 2023 Mar. 2024

IncomeExpensesMar. 2025
Forecast

Forecast

I. Financial Results

Financial Results for the Fiscal Year Ended March 31st, 2024

P.8

4. Expenses
 Expenses for the fiscal year ended March 31st, 2024 rose by 2.2 billion yen YoY to 80.2 billion yen, mainly due
to an increase in system-related expenses and the addition of City Ascom’s expenses after it joined the NNFH
Group in the previous fiscal year.
 Expenses for the year ending March 31st, 2025 are expected to rise by 1.8 billion yen YoY to 82.0 billion yen,factoring in an increase in personnel expenses following wage raises and an increase in non-personnel
expenses related to strategic system-related investments.
■ Expenses (Consolidated ) / (NCB)
Nonpersonnel
expenses786

Personnel
expenses

781(100 million yen)

Taxes

City Ascom’s expenses
780 8

56

57

56

360

350

349

370

Mar. ‘21

21/3期<Changes in OHR>
OHR
Core OHR＊

374

375

Mar. ‘22
22/3期

Mar. ‘23
23/3期

Mar. ’21

802 15

820

59

61

351

358

Taxes
Personnel expenses
Branch offices and other equipment
System-related expenses
Other non-personnel expenses

401

392

Mar. ‘24

Mar. ‘25

24/3期

668
50

660
50

651
49

665
51

681
53

309

299

294

290

296

81

80

80

77

82

114

117

125

132

132

114

114

103

115

119

‘25
Mar.
‘21 Mar.
‘22 Mar.
‘23 Mar.
‘24 Mar.
21/3期
22/3期
23/3期
24/3期
25/3期

25/3期
Forecast

Mar. ’22
67.7 %
69.3 %(NCB breakdown)

Forecast

Mar. ’23
64.1 %
64.6 %

Mar. ’24
72.1 %
65.8 %

73.0 %
66.5 %

Mar. ’25 (Forecast)
66.1 %
64.8 %*Core gross operating profit OHR derived by dividing expenses by core gross operating profit

I. Financial Results

Financial Results for the Fiscal Year Ended March 31st, 2024

P.9

5. Credit Cost
 Credit cost for the fiscal year ended March 31st, 2024 rose by 2.7 billion yen YoY to 6.6 billion yen, close to its
pre-COVID-19 pandemic levels. While outstanding loans and bills discounted grew, the ratio of credit cost andthe ratio of non-performing loans remained at low levels.
 Credit cost for the fiscal year ending March 31st, 2025 is expected to rise by 0.9 billion yen YoY to 7.5 billion
yen.
■ Credit cost (Consolidated)(100 million yen)

Proactive
allowance

Other

Ratio of credit
cost

Since-inception
average is 0.07％

Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023 Mar. 2024

Mar. 2025
Forecast<Ref.> Loans disclosed based on the Financial
Reconstruction Act (FRA) (NCB)
 While the ratio of non-performing claims is low, theircoverage ratio* remains high.
Substandard claims
Doubtful claims
Claims against
bankrupt and quasibankrupt obligors(100 million yen)

Ratio of non-performing claims
Coverage ratio

End of
End of
End of
End of
End of
End ofMar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023 Mar. 2024

*Coverage ratio = (collateral and guarantees + allowances) / balance of loans
disclosed under the FRA

I. Financial Results

Financial Results for the Fiscal Year Ended March 31st, 2024

P.10

6. Financial Results Forecast
 Profit attributable to owners of parent for the year ending March 31st, 2025 is expected to grow 3.4 billion
yen YoY to 27.0 billion yen, mainly due to an increase in net interest income resulting from an increase ininterest on loans and discounts and a fall in interest on foreign currency funding.
■Profit and Loss (Consolidated)(100 million yen)

Year ended
Mar. 31, 2024
Results

Year ending
Mar. 30, 2025
Forecast<Profit attributable to owners of parent (Forecast): Variance Factors YoY>

B

A-B

A

(100 million yen)

Gross operating profit

1,240

142

1,098

(Core gross operating profit)

1,265

59

1,206

Net interest income

983

73

910

Fees and commissions

242

2

240

(18)

Trading income

10

0

10

(2) Expenses

Other operating income

5

68

(63)

(25)

83

(108)

Expenses

820

18

802

Net business profits

421

125

296

(Core net business profits)

446

42

404

Gains (losses) on equity securities

75

(78)

153

Credit cost

75

9

66

Other extraordinary gains (losses)

(10)

16

(26)

410

54

356

Extraordinary profit (loss)

(11)

(3)

(8)

Income taxes

123

17

106

Profit attributable to non-controlling interests

6

0

6

Profit attributable to owners of parent

270

34

236

(of which, net gains (losses) related to bonds)

Ordinary profit

I. Financial Results

Capital gains(1) NetFees and (losses) oninterest commissions securities*
incomeMar. 2024*Gains (losses) related to bonds+ gains (losses) related to equity securities(9)
Creditcost(19)(3) OtherMar. 2025
Forecast(1) Net interest income- To increase by 7.3 billion yen YoY, mainly due to an increase in interest on loans
and discounts (+4.8 billion yen) and a fall in interest on foreign currency funding(-7.2 billion yen)
(2) Expenses- To increase by 1.8 billion yen YoY mainly due to an increase in personnel
expenses following wage raises (+0.7 billion yen) and an increase in nonpersonnel expenses due to strategic system-related investments (+0.9 billion yen)
(3) Other- An increase in income taxes (+1.7 billion yen), etc.
Financial Results for the Fiscal Year Ended March 31st, 2024

P.11

II. Management Strategies- Initiatives to Enhance Corporate Value -II. Management Strategies

Financial Results for the Fiscal Year Ended March 31st, 2024

P.12

1. Local Market Environment in Kyushu/Fukuoka
 Strong economies of Fukuoka and other areas in the Kyushu Region, the NNFH Group’s main market, where aseries of large-scale urban redevelopment projects and the accumulation of industries centering on
semiconductors are ongoing, lead to a number of business opportunities.
KyushuKyushu accounts for 10% of Japan’s economy

Population: 10.2% / Gross regional product: 8.3%
[2022]

Kyushu hots a diverse range of industries
14% of domestic auto production by unit
Auto
Agriculture 20% of domestic agricultural
production value
Semiconductors 44% of domestic IC production

Source: Kyushu Bureau of Economy, Trade and industry

Fukuoka PrefectureOver 40% of Kyushu’s GDP with 130,000 SMEs
(2021, of 350,000 companies in Kyushu)

Urban development
Tenjin Big Bang /Hakata ConnectedFukuoka City

Population growth: 4.8% [2015-2020 growth]Business start-up rate: 5.3% [2022]

Kita-Kyushu City

Approach to creating “harmony between industry
and environment” has been met with great
acclaim in Japan and abroad

Redevelopment ofmajor cities in
Kyushu- Population decline in Fukuoka Prefecture is moderatecompared to the national average. Population growth isexpected to continue in Fukuoka City up to around 2035.

Japan

-7.5％

Fukuoka Pref. Fukuoka City

-4.9％

＋3.5％

Source: Ministry of Internal Affairs and Communications, National
Institute of Population and Social Security Research

II. Management Strategies

Knock-on effect/year

850.0 billion yen/500.0 billion yen

Progressing in core areas
such as Nagasaki City,
Kumamoto City, andKagoshima City

Semiconductors
Capital expenditure
by semiconductorrelated industries
TSMC (Kikuyo-machi,
Kumamoto Prefecture)etc.

Investment

Over 4,700.0 billion yen
Number of semiconductorrelated businesses in Kyushu

Approx. 1,000

Source: Kyushu Bureau of Economy, Trade and Industry

Renewable energy

Source: Ministry of Internal Affairs and Communications, Fukuoka City

- Projected population [change between 2020 and 2035] -290.0 billion yen/260.0 billion yen

Source: Fukuoka City

Source: Small and Medium Enterprise Agency

No. 1 ordinance-designated city in population growthand business start-up rate

Construction investment effectCapital expenditure
in offshore windand mega solar
Semiconductors
facilities, etc.
investment

Hibikinada Offshore Wind
Farm
(Kita-Kyushu City, Fukuoka Pref.)175.0 billion yen
Ukujima Mega Solar(Sasebo City, Nagasaki Pref.)200.0 billion yen etc.

Source: Relevant municipalities, company websites

Financial Results for the Fiscal Year Ended March 31st, 2024

P.13

1. Local Market Environment in Kyushu/Fukuoka (1) Economic Outlook in Kyushu
 Kyushu’s economy is expected to grow at a level exceeding the national average growth for three consecutive
years, driven by an increase in capital investments centered on semiconductor-related industries.
■ Kyushu’s economic outlook (GDP YoY change)
（%)

2020

2021

2022

2023

2024

Kyushu

(4.9)

2.4

3.2

1.9

1.4

Japan

(3.9)

2.8

1.5

1.6

1.0

✓ Current business sentiments exceed national average✓ Capital investments expected to remain at high levels✓ Recovery in inbound demand is providing a boost

Source: Kyushu Economic Research Center

Business sentiments (diffusion index (DI))

Capital investments (YoY change)- Expected to remain at high levels,
although growth rate will slow

- Exceeding the national average
Kyushu /OkinawaMar. ‘19

Mar. ‘20

Japan

Mar. ‘21

Kyushu /OkinawaMar. ‘22

Mar. ‘23(10,000 people)

Japan

Mar. ‘24

Source: Bank of Japan Tankan

II. Management Strategies

Inbound trend (overseas arrivals)- Number of overseas visitors has almost
returnedto pre-COVID-19 pandemic levels

FY2019FY2020

FY2021

FY2022

FY2023

FY2024

Source: Bank of Japan Tankan

Jan. ‘19

Jan. ‘20

Jan. ‘21

Jan. ‘22

Jan. ‘23

Jan. ‘24

Source: Kyushu District Transport Bureau

Financial Results for the Fiscal Year Ended March 31st, 2024

P.14

1. Local Market Environment in Kyushu/Fukuoka (2) Demographics in Fukuoka Pref./Fukuoka City
 Population decline in Fukuoka Prefecture, where our Head Office is located, is moderate compared to thenational average on the back of the growing population in Fukuoka City.
■ Population projection for Fukuoka Pref., Fukuoka City, and Japan

Fukuoka City’s characteristics- Population growth is expected to continue in Fukuoka City until around 2035
(Population change with the 2020 population as 100)
103
102
100

99

104 Fukuoka
City

97

95 Fukuoka
Pref.

98
95

92

Japan

(1,000 people)

2020

2025

2030

2035

Fukuoka City
Fukuoka Pref.
Japan

1,612
5,135
126,146

1,638
5,073
123,262

1,660
4,989
120,116

1,669
4,886
116,639

Source: Ministry of Internal Affairs and Communications, National
Institute of Population and Social Security Research■ Breakdown of Fukuoka City’s population growth- Fukuoka City’s population growth is mainly due to a net migration increase inpeople in their teens and twenties
Natural increase/decrease(births/deaths)

Net migration increase/decrease

Third-party evaluations- Japan Power Cities 2023 (Mori Memorial Foundation) Economy &Business
Accessibility
Daily Life &Livability

Fukuoka City 4th
Total score

2nd
3rd
3rd etc.

1st Osaka City
2nd Yokohama City
3rd Nagoya City
5th Kyoto City

…Overall high evaluation, especially for business environment and livability

High start-up rate

Fukuoka City 5.3%
Tokyo 23 wards

4.5%

High ratio of young people(1st)

Fukuoka City 17.6% (1st)(4th)

Tokyo 23 wards

16.9%

(3rd)

Osaka City

16.5%

(6th)

Osaka City

(4th)
4.5%
*Fiscal year 2022
*Among 21 major cities (Tokyo 23 wards +ordinance-designated cities)*Ratio of residents aged 15-29 to total residents*Among 21 major cities (Tokyo 23 wards + ordinancedesignated cities)

Source: Fukuoka City Economy, Tourism & Culture Bureau

Source: Fukuoka Growth 2022 by
Fukuoka Asian Urban Research Center

Accessibility from airport

Short commuting time

(People)People aged 15 to 24
account for approx.
80% of the net
migration increase

Fukuoka

5 min.

(1st)

Singapore18 min.

(2nd)

Tokyo
25 min. (3rd)*Time taken to travel from an airport to city center(680)(2,077)

Source: Institute for Urban Strategies, Mori Memorial
Foundation (Out of 48 major global cities)

Fukuoka/Kita-Kyushu
metropolitan areas

36 min.

Kanto major cities

50 min.

Kinki major cities

45 min.

*One-way travel to work/school on weekdays
Source: 2021 Survey on Time Use and Leisure Activities by
the Ministry of Internal Affairs and Communications

Source: Ministry of Internal Affairs and Communications,, Fukuoka Prefecture

II. Management Strategies

Financial Results for the Fiscal Year Ended March 31st, 2024

P.15

1. Local Market Environment in Kyushu/Fukuoka (3) Development Trend in Fukuoka City and Its Vicinity
 In addition to large-scale redevelopment projects in the central part of Fukuoka City, development projects forhousing and logistics facilities are progressing in the vicinity of Fukuoka City on the back of its growing
population and robust economic environment.
Redevelopment of Kyushu University’s Hakozaki
campus[Duration: Apr. 2023 -]- Redeveloping approx. 50 ha of large areas- Pioneering project of Fukuoka City’s smart city planning

Hakata Connected [Duration: Dec. 2019 – Dec. 2028]- Project to take advantage of the relaxed floor-area ratio
to rebuild existing buildings into advanced, quake-roof
buildings, along with the expansion of transport
infrastructure, including extended subway lines
Nishi-Nippon City Bank has commenced a series ofredevelopment projects in the area in front of Hakata
Station including reconstruction of its Head Office building<New Head Office to be completed in Jan. 2026>(Artist’s rendition)

The building isdesigned to be amulti-purpose facility
accommodating officefloors and commercial
stores in addition toproviding the NishiNippon City Bank’shead office functions

Development in the vicinity of Fukuoka City( markedon map)- Development projects have expanded to housing andlogistics facilities in the area around Fukuoka City on
the back of rising land prices and site shortages(Ref.) Land price (residential) YoY change[Duration: May 2016 – Dec. 2026]- Project to promote reconstruction of aged buildings, etc.
by taking advantage of deregulation measures in the
National Strategic Special Zone

Tenjin Big Bang

Nishi-Nippon City Bank is actively involved in the ongoing
Tenjin Business Center Project Phase 2 (tentative name)

Jan. 2022

Jan. 2023

Jan. 2024

Fukuoka City

+6.1%

+8.0%

+9.6%

Fukuoka
metropolitan area

+5.2%

+6.3%

+7.9%

Japan

+0.5%

+1.4%

+2.0%

Source: Ministry of Land, Infrastructure, Transport and Tourism*The Fukuoka metropolitan area refers to Chikushino City, Kasuga City, Ohnojo City, Munakata City, Dazaifu City, Koga City, Fukutsu City,
Itoshima City, Nakagawa City, Umi-machi, Sasaguri-machi, Shime-machi, Sue-machi, Shingu-machi, Hisayama-machi, and Kasuya-machi.

II. Management Strategies

Financial Results for the Fiscal Year Ended March 31st, 2024

P.16

1. Local Market Environment in Kyushu/Fukuoka (4) Update on Semiconductor-related Investments
 Companies around the world are proactively making capex for semiconductor-related facilities in many
prefectures in Kyushu, most notably Taiwan Semiconductor Manufacturing Company Limited (TSMC) in
Kumamoto.
Scheduled/ongoing semiconductor-related capital
investments in Kyushu (publicly announced projects only)
Nov. 2021 TSMC announced
construction of a newfactory in Kumamoto
Over 1,335.0 billion yen

Semiconductor-relatedcompanies

988

Feb. 2024

TSMC announced
construction of the second
factory in Kumamoto

Over 4,700.0 billion yen

Nagasaki
63<Approx. 700 companies surveyed>

385

Saga
47
Over 2,080.0 billion yen

Related companies’ financing needs assurveyed by the Company

Source: Kyushu
Bureau ofcompanies in total
Economy,Trade andIndustry;
compiled by
the Company Fukuoka

Financing needed:

Oita
133

＋

Kumamoto
211
Miyazaki74
Kagoshima
75

Companies
in peripheralindustries(Real estate,etc.)

Approx. 200 companies/Approx. 95.0 billion yen

Kumamoto: Approx. 45.0 billion yen
Fukuoka:

Approx. 37.0 billion yen

Nagasaki:Approx. 6.0 billion yen

Oita:

Approx. 1.0 billion yen

Others:Approx. 6.0 billion yen(As of March 31st, 2024)

Source: Kyushu Bureau of Economy, Trade and Industry;compiled by the Company● Conclusion of partnership agreement among
regional banks in Kyushu/Okinawa
 In Jan. 2024, 11 regional banks in Kyushu

Recentinitiatives

and Okinawa including the Nishi-Nippon
City Bank signed a partnership agreement
to create New Silicon Island Kyushu
 The Nishi-Nippon City Bank will be involved
in its operation as a leader of theconsultative body under the partnershipagreement

II. Management Strategies● Creation of dedicated semiconductor team<Areas of collaboration>
Supply chain resilience
Sustainability promotion
Finance In Apr. 2024, a dedicatedteam was created in the
Nishi-Nippon City Bank
 In collaboration with
headquarters, Group
companies, externalorganizations, etc., theteam supports a wide rangeof customers

Semiconductor team
NCB

Group
External
companies partners

Support customers
etc.

Financial Results for the Fiscal Year Ended March 31st, 2024

P.17

2. Initiatives to Enhance Corporate Value While improving ROE through steady implementation of the measures under the Medium-Term Business Plan,
we aim to increase PER through continuous disclosures of the status of each initiative, among other metrics,
and dialogues with investors, thus enhancing our corporate value (i.e., higher PBR).
Medium-Term Business Plan (MTBP)<Target Management Indices (MTBP KPIs)>

Leaping Forward 2026
Connecting with Sincerity, Connecting with the Future

FYE Mar. ’23 (result)(from April 2023 to March 2026)

Basic strategy #1

Providing customer-oriented “One to One Solution”

Basic strategy #2

Sales reform

Basic strategy #3

Human resource reform

Basic strategy #4

Sustainability initiatives

FYE Mar. ’24 (result)FYE June ’26 (plan) Consolidated profit 26.1 billion yen ⇒ 23.6 billion yen ⇒ 32.0 billion yen
 Consolidated ROE
4.95% ⇒
4.26%
⇒ Approx. 6%⇒ Approx. 60%
 Consolidated core OHR 65.8% ⇒66.5%⇒ Mid-11% range
 Consolidated capital 12.10% ⇒ 12.41%

adequacy ratio（10.39％）（10.32％）（Low 10％ range）
Figures in brackets are based on full application of finalized Basel III reforms.

Enhancing
ROE

ProfitShareholders’equityImproving
PBR
Marketcapitalization
Shareholders’equity×Enhancing
PER
Marketcapitalization
ProfitII. Management Strategies

Improving
RORA
ProfitRisk assets

Rationalizing
financialleverage levels
Risk assets
Shareholders’equityFostering
growthprospects
Reducing
capital costs

Increasing
earning power
Controlling
expenses
Controlling risk
assetsShareholder
returns
Growthinvestments

Providing customer-oriented “One to One Solution” P.20-

Strengthening the sales system

P.25-

Reducing expenses by improving efficiency

P.27

Initiatives for structured finance (high RORA assets)

P.21

Reducing strategic shareholdings

P.33

Increasing shareholder returns (dividends, share buybacks)

P.32

Strategic investments in systems, human capital, etc.

P.28
etc.

Disclosing
growth strategies,
etc.

Continuously disclosing the above initiatives to enhance ROE

Dialogues withinvestors

Strengthening engagement with shareholders/investors

Financial Results for the Fiscal Year Ended March 31st, 2024

Steady implementation of
MTBP measures

Direction of the initiatives to improve PBR

P.18

《Appendix》 PBR, ROE, and Stock Prices■ PBR■ Consolidated ROE

Shareholders’ equity basis

0.60

After remaining very muted,
PBR is showing an upward trend

0.50
0.40
0.30

0.36

Net asset basis

0.49

Aiming at a level above capital cost over the
medium- to long-term

We recognize our capital cost is currently around 6*1 to 9%*2

0.36
0.28
0.22

(MTBP final year KPI)

0.22

0.18

0.20

Approx. 6%

0.29*1 Calculated based on CAPM: [risk-free rate + our stock price β × market risk premium](Following the calculation method of capital cost for the JPX Prime 150 Index)*2 Calculated based on earnings yield: [Reciprocal of our PER based on 0% growth rate]
0.10

Mar. 2017 Mar. 2018 Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023 Mar. 2024

Mar. ‘17 Mar. ‘18 Mar. ‘19 Mar. ‘20 Mar. ‘21 Mar. ‘22 Mar. ’23 Mar. ‘24 Mar. ‘25 Mar. ‘26 Mar. ‘27･Mar.
･ ･‘28 Mar. ‘29■ Stock prices (Indexed to Mar. 30, 2023 as 100)
NNFHH

TOPIX banks
TOPIX

Our stock price has been solid, outperforming TOPIX since last year

May 8: Financial
results for FYE Mar. 31,
2024 announced

Mar. 2023: The new MTBP and change ofshareholder return policy announced(Total return ratio 30% ⇒ 40%)

At the financial results briefings in May 2023, disclosed the direction of our initiatives to enhance corporate value

Negative interest rate policy
cancelled

Mar. 30, 2023 Apr. 30, 2023 May 31, 2023 June 30, 2023 July 31, 2023 Aug. 31, 2023 Sep. 30, 2023 Oct. 31, 2023 Nov. 30, 2023 Dec. 31, 2023 Jan. 31, 2024 Feb. 29, 2024 Mar. 31, 2024 Apr. 30, 2024

II. Management Strategies

Financial Results for the Fiscal Year Ended March 31st, 2024

P.19

3. Providing Customer-Oriented “One to One Solutions” (1) Corporate Customers
 Provide financial and non-financial solutions tailored to each corporate customer’s needs, which arebecoming increasingly diverse and sophisticated.
Increasingly diverse and sophisticated issues
and needs of corporate customers
Higherproductivity

Labor shortage
Business expansion/
conversion

Smooth businesssuccession

Measures forcarbon neutrality

Revitalization of theregional economy
etc.

■ Business loan balance (average balance; NCB)
Previous MTBP
[Annualgrowth rate]［＋3.9%］

Mar. 2020［＋7.9%］

Mar. 2021

Banking(Trillion yen)

Current MTBP

Creditcards

Leasing Securities Consultancy

Support for business Support for SDGs/ESG,
decarbonization
succession/M&A
Support for cashless
payment

Human resourcesrelated support

ICT

Support for
digitalization/DX
Support for businessstartups / regional
development

Provision of diverse fundraising methodsetc.

■ Corporate customer-related fee income (NCB)
Previous MTBP

(100 million yen)

Current MTBP［＋3.4%］［＋3.0%］ ［＋2.0%］

Mar. 2022

Mar. 2023

Mar. 2024

Mar. 2026(MTBP KPI)

II. Management Strategies

Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023 Mar. 2024

Mar. 2026(MTBP KPI)

Financial Results for the Fiscal Year Ended March 31st, 2024

P.20

3. Providing Customer-Oriented “One to One Solutions” (1) Corporate Customers
 Provide diverse fundraising methods that meet customers’ individual needs using structured finance, funds,
and other instruments.
Initiatives for structured financeUtilization of funds

 Offering a diverse menu of structured finance, including real estate-related

 Launched a successor to the NCB Kyushu Revitalization Fund No. 2

financing, MLBO financing, and ship and aircraft financing

Sustainable
MLBO＜

Risk weight and profitability of＞each asset class

Structured finance

2.0%

Real
estaterelated

1.5%

Apartment loans

1.0%

Ships andaircrafts

Foundation, Growth
QB Fund No. 1

NCB Venture FundQB Fund No. 2

No. of projects / total amount provided

Approx. 145 cases/Approx. 11.5 billion yen

SME loans
0.5%

NCB Kyushu “Senary
Agriculture” Support Fund

Loans to large corporations

0%■ Structured financing balance(at term end)
(100 million yen)

20%

40%

■ Credit-related fees

60%

(Risk weight)

80%(100 million yen)

NCB Kyushu
Revitalization Fund No. 2
New

NCB Kyushu
Revitalization Fund No. 3

Fund size: 4.0 billion yen
Business succession,
turnaround, growth
capitalFinely-tuned start-up support*Figure for structured finance is new financing offered in FYE Mar. 31, 2024

0.0%

Growth, Maturity

TargetBreakdown of newly offeredfinancing (FYE Mar. 31, 2024)(Return)
Project
2.5%(Fund No. 3) to support business succession, turnaround, etc. of local
companies
Life stages of a business Tapping into the “DNA” of developing SMEs, we support start-ups bymeeting their financing and non-financial needs■ Number of start-ups (Cases)
supported

15,000Mar. 31, 2023

Mar. 31, 2024

II. Management Strategies

Mar. 31, 2026
（MTBP KPI)

Mar. 31, 2023 Mar. 31, 2024

Mar. 31, 2026
（MTBP KPI)

Funds

Co-working facilities

LendingStart-up support
salons

Leasing

Platform forcorporate customers

3,567

3,717

2024
Mar.
2023 Mar.
23/3期
24/3期

Financial Results for the Fiscal Year Ended March 31st, 2024

MTBP KPI(MTBP total)

P.21

3. Providing Customer-Oriented “One to One Solutions” (1) Corporate Customers
 Provide a diverse range of solutions that address immediate managerial issues of many corporate customers,
including “digitalization/DX” and “recruitment.”
Support for digitalization/DX

Human resources-related support

 NCB, City Ascom, and Ijigen Group to work as one to provide optimal

solutions corresponding to the size and issues of customers

Large
Middleranking
SMEs

provide solutions that match the issues of each customer■ Number of DX
consultancy/digitalization
support projects (Cases)

Start with consultation
to provide optimal
solutions
Digital services
development etc.

1,000

NCB
City Ascom

Support for
digitalization centering
on regulatory response384 Group companies with HR-related solution functions to collaborate to401

HR referrals
Side
Full-timebusiness
employees

Concurrent
position

NCB Research & Consulting (R&C)

Temporarystaffing(contracting)TrainingHR
consultancy

City Career
Service

R&C

R&C
Ijigen G<New HR-related solution functions launched last fiscal year>

New

Recruitment DX
package

Provide packaged support from recruitment-related
challenge diagnosis to website production, SNSlaunches, etc.

 Starting with support for compliance with the Electronic Books Maintenance

Side business HR
referrals

Refer professionals looking for side business tocorporate customers who are considering hiring
professionals for a limited time for launching new
businesses, promoting DX, etc.

Corporate
customers

Referral of nurses

Refer nurses who match well with the needs ofcustomers in the healthcare/welfare industries
which are troubled with chronic labor shortages

Electronic
expensesettlement

Micro

Ijigen Group
Mar. ‘23 Mar. ‘24
23/3期 24/3期

etc.

MTBP KPI
total

Support for cashless payment (The Kyushu Card Co., Ltd.)
Act, encourage corporate customers to introduce corporate cards
MemberstoresEmployees

Pay withcorporate cards

By using corporate cards, paper receipts
are replaced by electronic files, making
it easier to comply with the Act<Number of corporate cards issued>

Import usage data

Mar. ‘24

Mar. ‘23

1,823

1,446

■ Card transaction volume (100 million yen)
6,000

■ Number of member
stores(1,000 stores)
70

No. 1* in Japan
based on the numberof cards issued
Mar. ‘23

Mar. ‘24

MTBP KPI(Mar. ‘26)

II. Management Strategies*Among credit card companies
affiliated with regional banks*Based on the fiscal year ended
Mar. 31, 2023

The NNFH Group’s HR referral function
Domestic
HRs

End ofMar. ‘24

MTBP KPI
End ofMar. ‘26(Cases)Foreign
HRs

Full-time employees

NursesEnd ofMar. ‘23■ Cases of HR-related solutions

Side business,
concurrent positions

1,000

Highly skilledworkers
Specifiedskilled workers
Technical
internsMar. ‘23

Mar. ‘24

Financial Results for the Fiscal Year Ended March 31st, 2024

MTBP KPI
total

P.22

3. Providing Customer-Oriented “One to One Solutions” (2) Retail Customers
 Provide optimal solutions for each customer by practicing customer-oriented business operation andconsulting on all assets and liabilities for a broad range of customers.
Consulting on full range of assets and liabilities of customers
Issues and needs of retail customers
Asset building/management in
anticipation of theera of 100-year life

Preparation for
inheritance
Smooth asset
succession

Support stable asset building
Consulting on asset building starting
Support asset building
with NISA and iDeCousing loan products
Enhance functions for non-face-to-face channels andetc.
improve UI/UX

Convenient andpersonalized
services

etc.

Sophisticated asset management/succession support
Support asset
Support asset
Sophisticated asset
succession/inheritance management/succession
management consulting
using trusts
using loan functions etc.
Practice customer-oriented business conduct■ Asset under management (term-end balance; Group total)
Previous MTBP

(Trillion yen)

Current MTBP

Previous MTBP[+10.2%][YoY change][+14.7%][+6.7%]■ Personal loan balance (average balance; Group total)[YoY change][+1.6%][+1.7%][+2.1%][+3.1%](Trillion yen)

Current MTBP[+3.7%][+3.2%]

Consumer loans[-7.9%]

Housing loans
End of Mar. ‘20

End of Mar. ‘21

End of Mar. ‘22

II. Management Strategies

End of Mar. ‘23

End of Mar. ‘24

End of Mar. ‘26(MTBP KPI)

Mar. ‘20

Mar. ‘21

Mar. ‘22

Mar. ‘23

Mar. ‘24

Mar. ‘26(MTBP KPI)

Financial Results for the Fiscal Year Ended March 31st, 2024

P.23

3. Providing Customer-Oriented “One to One Solutions” (2) Retail Customers
 Provide optimal solutions for each customer by proposing asset building starting with NISA and loan productsthat correspond to the life stage of the customer.
Consulting on asset building, starting with NISA, etc.
■ NISA accounts (NCB)

Provision of loan products appropriate for a life stage of the customer● Expanded the dedicated loan site system

New NISA accountopenings grew

(1,000 accounts)

Flexibly allocated personnel to each dedicate loan site in each regional market,
achieving the steady growth in the housing loan balance

2.5 times YoY

Number of NISA accounts
at NCB is
the second largest*among regional banks

Mar. 31, ‘21 Mar. 31, ‘22 Mar. 31, ‘23 Mar. 31, ‘24* As of Dec. 31, 2023 (based on a survey
by Kinyu Zaisei Jijo Kenkyu-kai)■ Housing loan balance (average balance)(100 million yen)
19,234

19,89521,000

Proactively hold finance seminars at local business partners, schools, etc., tostimulate customers’ asset building needs (619 seminars held in the previous
fiscal year)● Consulting using tools● Enhance app functions

Added an investment trust/NISA
account opening function to NCB’s app
First among
regional banks in
Kyushu (June ‘23)

⇒ Ongoing efforts toimprove UI/UX

Saving plan proposal

Portfolio analysis(100 million yen)
Fukuoka Pref.

Monthly
withdrawal(100 million yen)Mar. 2023
23/3期

Mar. 2024
24/3期

Mar. 2026
26/3期

OutsideFukuoka Pref.

＋13%
Mar. 2023
Mar. 2024(MTBP KPI)

● Strengthen the non-face-to-face channel function
Thanks to the addition of various loan application functions on the app, theratio of contracts via non-face-to-face channels has risen, raising the overall
amount of loans executed.

■ Consumer loan balance (average balance)■ Investment trust(100 million yen)
29

3,304

3,360

<Consumer loans executed by NCB>

3,600

274

(100 million yen)

226

103
+2.1 billion yen

Number ofcontracts(1,000 cases)

Branches
App, websites+2.7 billion yen

Mar. 31, ‘23 Mar. 31, ‘24

II. Management Strategies

1,943

1,839
＋4%

● Proactively hold finance seminars

Focus on proposing long-term, diversified
investment tailored to the life plan of eachcustomer<Housing loans executed by NCB>

Mar. 31, ‘26(MTBP KPI)

Mar. 2023
23/3期

Mar. 2024
24/3期

Mar. 2026
26/3期
(MTBP
KPI)

Mar. 2023

Mar. 2024

Financial Results for the Fiscal Year Ended March 31st, 2024

P.24

4. Sales Reform (1) Strengthening the Sales System
 Strengthen the framework for Group collaboration while enhancing the HQ support system in both corporate
and retail businesses, so that we can properly connect customers’ issues and needs with the Group’s diverse
solution functions.
Strengthen the HQ support system

Enhance the Group collaboration system

 Established specialized units in HQ to strengthen a hub that would connect

 Rolled out cross-Group strategies through the Group Strategy Council, etc.,

the issues/needs of customers with the Group’s solution functions,
resulting in a significant increase in the number of collaborative cases
between HQ and branch offices.

resulting in the contribution of Group companies (excl. NCB) to
consolidated results exceeding 20%.

HQ departmentswith solutions
function

Consulting supporters
Retail
Wealth Manager

Group companies

The Nishi-Nippon Financial HoldingsGroup Strategy Council

Collaboration

Corporate
Branch offices

Needs
Provide optimal
solutions using Group issues
functions

Corporate/retailcustomers

Strengthen the “hub” by establishing specialist teams in HQ (Apr. 2023-)

NCB

The Bankof Nagasaki

NCTT
Securities

The Kyushu
Card

R&C

City Ascom

KyushuLeasing

Ijigen G

CFA* (for each Block)* Chief Financial Advisor■ Group companies’ contribution to profit and consolidated results (excl. NCB)

■ Number of data collaboration cases between HQ and branch offices<Corporate (consulting supporters)>
796

YoY change

Consolidated subsidiaries

YoY change
Approx. x3<Retail (Wealth Manager)>
Approx. x3

283
Mar.
‘23
23/3期

Mar.
‘24
24/3期

Mar. ‘23

Mar. ‘24

Main outcomes from the above collaboration (Mar. ’24)

Approx. 44.0 billion yen

II. Management Strategies

Approx. 0.4 billion yen

Equitymethod
affiliates

Loans executed

Corporate fees &commissions

AUM
Approx. 2.4 billion yen

etc.

<Contribution to consolidated results>(100 million yen) Mar. ’23

Mar. ’24

Nishi-Nippon Credit Guarantee

16

14

-2

The Kyushu Card

14

14

-0

Nishi-Nippon City TT Securities

2

7

+5

Contribution
amount*1

YoY

City Ascom

7

4

-3

Bank of Nagasaki

2

4

+1

Kyushu Servicer

1

2

+1

NCB Research & Consulting

1

0

-0

Kyushu Leasing Service

59

30

-28

NTT Data NCB

1

2

+1

* Contributions of City Ascom and Kyushu Leasing Service to consolidated
results in the fiscal year ended March 31st, 2023 only reflect the second
half of the fiscal year as they were consolidated into the Group in Oct.
2022.

Contribution
rate *2*1 Sum of the amounts calculated by multiplying profitof each company shown on the left by the equity
holding ratio (deducting gains on the sale ofequities, etc. within the Group)*2 Ratio of each company’s profit in the Company’s
consolidated profit

21%

14%
4.9 billion yen

MTBP KPI
5.0 billion yen

Mar. ‘24

Mar. ‘26

3.5 billion yen

Mar. ‘23

Financial Results for the Fiscal Year Ended March 31st, 2024

P.25

4. Sales Reform (2) Digital Strategy
 Continue expanding the functions of NCB App (for retail customers) and NCB Business Station (for corporate
customers). With the expansion of the user base accelerating, these two digital channels are assuming greater
importance as our customer contact points.
The Nishi-Nippon City Bank App, a digital channel for retail customers
Have a bank inyour smartphone!

InquirePay

 App-to-app transfer, small amount transfer COTRA Payment of taxes and public funds, etc.

Save &
Increase Investment trust/NISA account opening, investment trusttransactions (June 2023-)
 Online securities (CHEER Securities, Inc.), etc.

100

80

<App user profitability*>*Comparison of gross operating profit per
customer (FYE Mar. 31, 2024)

1.5x App card loans App car loans, etc.

4,900 yen

 Ordinary account opening Various procedures (address change, lost card
reissuance), etc.

And more

16/3
Mar.
2016

(10K cases) Investment trust profit/loss (June 2023-)
 Deposit balance, transaction history, etc..

Borrow

15/3
Mar.
2015
Mar.
2015

1.01 million registered accounts

17/3
Mar.
2017

18/3
Mar.
2018

Mar.
2019
19/3

Mar.
2020
20/3

60

7,200 yen
Earnings from
deposits

40

Fees
Earnings
from loans

Non-app user

21/3
Mar.
2021

22/3
Mar.
2022

20

App user

Mar.
2023
23/3

0

Mar.24/3
2024

NCB Business Station, a digital channel for corporate customers
Always access to an online
counter!

II. Management Strategies

Financial service

Non-financial service

 Single transfer
 Bundle transfer, salarytransfer Deposit balance and accountactivity inquiries
 Other banks online inquiry
services Online loan functions etc.

 Business matching Provision of subsidy andgrant information
 Provision of seminar andmanagement information
 Employee benefits services
 Electronic form issuanceservices (May 2023-) etc.

46,000 contracts
Integration of the home page with thelogin for corporate IB (Sept. 2023-)

2,000

8,000

Mar. 2021 Mar. 2022

14,000Mar. 2023

Mar. 2024

Financial Results for the Fiscal Year Ended March 31st, 2024

P.26

4. Sales Reform (3) Work Reform Continue initiatives for increasing operational efficiency to enhance productivity of the entire Group.
 The branch system upgrade to be implemented in this fiscal year is especially designed to fundamentally
reduce branch administration, transforming branch offices into “business locations focused on consulting.”■ Volume of office work reduced at HQ and branches (aggregated)
Mar. ‘20

Mar. ‘18

Mar. ‘23(Person equivalent)Mar. ‘26(Before operational reform)

Branch system upgrades (scheduled for FY2024)
 Significantly reduce/simplify branch administration by realizing the three “less(slip/ledger-less, cash-less, and account calculation-less)” (reduce administrative
work equivalent to 140 persons’ work)⇒ Office work will be mainly handled by part-time staff, with full-time
employees shifting to face-to-face consulting operations, etc.

(578)
Current MTBP
(300)

(1,215)Current branch offices

Approx. (1,500)⇒ Step by step implementation of streamlining measures to reduce
the work volume at HQ and branches(Measures that should reduce the work volume equivalent to 300 persons are in placeat present.)

FY2023

FY2024FY2025
Branch system upgrades (July ’24– )Introduce a new real estate
valuation system
Introduce an expense settlement system
Use generative AI (HQ began using it for its
operations in May 2024)■ Customer service operation profit per employee*etc.

After branch system upgrade*Calculated by dividing (average balance of loan x loan-deposit spread + fees and commissions – operating
expenses) by the average number of employees during the period(Million yen)

Procedures using
tablets, etc.
Face-to-face consulting

Productivity per person increasing steadily
Mar. ‘18

Entire15.3 billion yen
NCBMar. ‘20

II. Management Strategies

Mar. ‘23

Mar. ‘24
21.6 billion yen

Employees inspect the slips, etc.
prepared by customers and input
data using dedicated devices
Employees inspect cash received
from customers and process
accounts
Start reconciliation for cash andaccounts after the end of branchbusiness hours, etc.

DigitalCustomers willcomplete transactions using tabletsand deposit/withdraw cash using
dedicated devices
Human touch
Employees to focus on face-to-faceconsulting⇒ Branch offices to be focused on
consulting(Illustration on the left)

Financial Results for the Fiscal Year Ended March 31st, 2024

P.27

5. Human Resources Reform (1) HR Development
 Strongly support the growth of each employee by developing strategic human resources to lead the Group’s
future in consulting, DX, planning, etc., and expanding job class/business operation-based training and reskilling training

 Developing strategic HRs

 Expand the development menu to include internal/external training programs at

the bank’s cost in order to enhance the expertise and skill sets of employees

Consulting personnel
Support the acquisition of 1st-grade FP
and SME Management Consultant
credentials(e.g., holding exam preparation seminars at the bank’s cost)people18人
18Mar. ‘23
23/3期

people6161人Core personnel*1
3030人
peoplepeople105105人

 Comprehensively review the training system and contents to provide

practical training at the HR development facility, Kokoro-kan
Job class training

Expand incentive payments to acquire
advanced qualifications

Specialists*1

 Job class / business operation-based training

people199
199人• Expand the training menu to develop skills expectedof each job classetc.

people300
300人

Mar. ‘23
Mar. ‘24
MTBP KPI
23/3期
24/3期 (e.g.,中計KPI*1 Specialists: Those who have 1st-grade FP credential or otheradvanced qualifications
SME Management
Mar. ‘24
24/3期

MTBP KPI
中計KPI

Specialists*2
people13
13人

people38
38人

people9090人

people501
501人

people593
593人

people1,100
1,100人MTBP KPI
Mar. ‘23
MTBP KPI
Mar. ‘24
Mar. ‘24
Mar. ‘23
23/3期
24/3期
中計KPI
24/3期 by the
中計KPI*2: Specialists: Those who have advanced qualifications (e.g.,23/3期
IT Strategist) designatedCompany andcertain years of practical experience
Core personnel: Those who have qualifications designated by the Company (Fundamental Information
Technology Engineer) and certain practical experience

Planning personnel• Expand the training menu

corresponding to each person’s
experience and skills

Dispatch to business schools, etc. etc.

II. Management Strategies

Specialist personnel• Develop HRs who will play a central

role in each field through OJT in IT,
financial market, international
business, and other specialized
divisionsMiddle-ranking
employees

Establish pre-management
training

Managerial
personnel

Expand training to improve
management skills

etc.

• Review the training content to help improve

DX personnel
Strategic secondment to companies
with strengths in DX
etc.
Core personnel*2

Expand follow-up training

Business operation-based training

Consultants) designated by the company and certain of years of practical experience
Core personnel: Those who have 1st-grade FP credential or other qualifications such as 2nd-grade FP
credential with certain years of practical experience

Data engineer development program

Younger
employees

HR development facility,
Kokoro-kan

consulting skills
Expand skill-up training
Corporate/
regional sales
according to experience
Retail sales Re-skilling

EnhanceOJT system

Expand training for broadening
the scope of retail consultingetc.

 Implement re-skilling measures to expand opportunities for each individual toplay an active role

VBA specialist training seminarfor efficiency improvement

Introduce a program to support
the acquisition of professional
qualificationsetc.

Approx.

■ Training costs
120 million yen

127 million yen

185 million yen

200 million yen

Approx. 1.5x

Mar. ‘22

Mar. ‘23

Mar. ‘24

Mar. ‘25 (Plan)

Financial Results for the Fiscal Year Ended March 31st, 2024

P.28

5. Human Resources Reform (2) Greater Job Satisfaction
 Build a corporate culture that promotes advancement of diverse human resources by establishing anenvironment that improves job satisfaction through a review of treatment of employees, HQ building
reconstruction / branch office renovations, promotion of diversity & inclusion, etc.
 Promote diversity & inclusion

 Review of treatment of employees Increase salary levels based on the internal and external environment,

review employment system for part-time staff, etc.

Raises of an average of roughly 5.0% in two
consecutive years *1

Increase salary levels*1: Rate of salary increase on the annual salary basis incl. regular salary increases infiscal years 2023 and 2024

Raise salaries for new
graduates

Raise to 260,000 yen by FY2025

 Strengthen initiatives to ensure active participation of diverse HR throughmid-career recruitment and empowerment of female workers
Mid-career recruitment
Empowerment of women• Actively recruit professionals who haveadvanced expertise and skills(E.g., lawyer, CPA, tax accountant)

FY2023: 215,000 yen ⇒ FY2024: JPY240,000 ⇒ FY2025: 260,000 yen(Employees recruited mid-career) Establish workplace environment Accelerate the renewal of aging stores through renovation, which reduces(Number of stores for renewal)
Rebuilt
4 branches- Chikushi-dori Branch (Renovation)- Ito Branch (New branch)- Head Office (Rebuilding)- Oita Branch (Rebuilding) etc.

End ofMar. ‘24

11％

22％(1 outside and 1 inside directors)<External assessment>

Popularity among job
seekers in Kyushu andOkinawa*4
3rd

3rd

2nd

1st
Acquired Tomonincertification

Acquired Kurumin
certification

FY2022AllNCB Financial
industry industries
3.6
3.1
3.0
3.7
3.2
3.1

*2: The FY2023 survey used a 6-point scale response system. Responses in FY2023 were therefore
recalculated using a 5-point scale response system.

II. Management Strategies

End ofMar. ‘23*3: Those who are in the position to which heads of their affiliations (Branch Managers, General Managers)
may delegate their authority according to in-house regulations (the same job level as section managers)levels compared with industry peers as well as all industries.

I feel proud to work here

The figures in parentheses show the ratio of
women in positions of section manager or above(1 outside director)

 Employee satisfaction regarding “Self growth” and “Job” grew YoY, maintaining high

NCB
3.9
4.0

End ofMar. ‘24

After AGM in June 2024
(scheduled)

End ofMar. ‘20■ Employee survey findings (Average of 5-point scale responses)

FY2023*2

End ofMar. ‘23(Ratio of female directors at NNFH)

14<Employee engagement>

Working here, I realize how much I have grown

End ofMar. ‘20[Completed in FY2023][Renewal in FY2024 onward]
現中計期間
Current
MTBP

78

52

costs and shortens construction periods, in addition to reconstruction

前中計期間
Previous
MTBP(Ratio of women in managerial positions*3)

Ranked 1st for
the first time

8th

2020

2021

2022

2023

2024

*4: Survey by Nikkei Career-tasu, Inc.

Certified as a 2024 Health &Productivity Management
Organization

Rated 3 Stars in the 7th
Nikkei Smart WorkManagement Survey

Financial Results for the Fiscal Year Ended March 31st, 2024

P.29

6. Sustainability Initiatives
 Contribute to the realization of a sustainable society by bolstering SDGs/ESG initiatives via means only
available to a regional financial group.
Supporting customers’ efforts

Our initiatives■ CO₂ emissions*2 (NCB)■ Amount of sustainable finance executed (two banks combined)
Target*2: As measured according to the standards applied to periodical reports stipulated
in the Act on Rationalization of Energy Use and Shift to Non-fossil Energy(100 million yen)Interimtarget(36.4%)

Interimtarget(t-CO₂)

Target(49.5%) (52.0%)
CarbonneutralMar. ‘22

Mar. ‘23

Mar. ‘24

Mar. ‘26

Mar. ‘31

Mar. ‘14

 Offering sustainable finance tailored to diverse customer needs
 Supporting customers’ efforts for the environment and climate change with

Green loans

Second-tierenterprises

Sustainability-linked loans

SMEs, etc.
(wide-ranging
customers)
Retailcustomers

SDGs private placement
bonds
SDGs supporting loans

Mar. ‘26

Mar. ‘31

Aim to acquire ZEB Ready*3 certification through the proactive adoption of

eco-friendly technologies*3 ZEB Ready: Granted to buildings achieving energy savings of 50% or more

Green bonds

New•

Positive impact financeDecarbonization impact finance, Forest-like〔Launched in May 2024]

Support companies’ efforts for decarbonization in collaboration with a general
trading company and a startup which have strengths in environmental initiatives

Challenge

Nishi-Nippon City Bank

Decarbonization impact
finance

Housing loans for ZEH and LCCM*1

×
General trading company
etc.

*1 ZEH (Net Zero Energy Housing): Housing aiming to achieve net zero annual primary energy consumption
LCCM (Life Cycle Carbon Minus Houses): Housing that reduces the balance of CO2 emissions below zero during its life cycle (construction, usage, disposal)

II. Management Strategies

Mar. ‘23

 Reconstructing the Head Office Building [to be completed in FY2025]

optimal solutions by expanding the lineup of sustainable finance offerings

Large
enterprises

Mar. ‘22×Environmental start-up

Lacking know-how andpersonnel to promotedecarbonization
Offer one-stop support for companies’
etc.
decarbonization efforts(Support menu)
Loans ,Visualization of GHG*4 emissions,Support for setting/achieving GHG emission
reduction KPIs,Carbon offset

Companies*4 Greenhouse gases such as carbon dioxide and methane gas

Financial Results for the Fiscal Year Ended March 31st, 2024

P.30

7. Capital Policy (1) Basic Approaches
Actively make forward-looking growth investments while securing sufficient levels of capital for sustainablegrowth and improvement of the corporate value of the NNFH Group; at the same time, increase returns ofprofits to shareholders and investors.
Drive growth investment
 Active forward-looking growth investments
Humaninvestment
capitalStrategic
Securities
Growthinvestment
investment
investment

Secure sufficient levels of capital Capital adequacy ratio is expected to hover in thelow 10% range during the period of this plan

Consolidated capital adequacy ratio (based on full application of Basel III finalization)

Growth investment
The Year ended
Estimates for year
Mar. ’23
ending Mar. ’26
10.39%

Sustainablegrowth / increased
corporate valueof the NNFH Groupetc.

Enhance returns to shareholders
 Review the shareholder returns policy and raise thetotal return ratio to approx. 40%
Total returns ratio to the profit attributable to owners of parent

Before review
investment(to the year Growth
endedAfter review
Mar. ’23)

Low 10% range

Approx. 30%

Approx. 40%■ Capital allocation (*Capital adequacy ratios are based on full application of Basel III regulations.
Capitaladequacy ratio

10.39%

Amountof profit

Capitaladequacy ratio(0.22)
Return toshareholders

10.32%

Capital adequacy ratio

Low 10% range(0.38)

Risk assets

Increase in risk
assets, etc.
(Growthinvestments, etc.)

Mar. ‘23

II. Management Strategies

Mar. ‘24－ Increases/decreases in risk assets during current MTBP period (image) －－Risk assets

Businessloans

Mar. ‘26

Mar. '23

Structured
finance

Personal
loans

Securities

Other

Mar. ‘26

Financial Results for the Fiscal Year Ended March 31st, 2024

P.31

7. Capital Policy (2) Shareholder Returns
 Shareholder returns for the fiscal year ended March 31st, 2024 totaled 9.8 billion yen with a total return ratioof 41.4%.
 Plan to increase annual dividends from 55 yen to 60 yen in line with the target total return ratio of around
40% in the fiscal year ending March 31st, 2025.
Shareholder returns policy
In the light of the public nature of a bank holding company and the importance of maintaining its sound management, we strive to strengthen our
financial resilience by retaining an appropriate level of internal reserves and providing stable dividend payments to our shareholders. Specifically, withroughly 40% of the ratio of total return to profit attributable to owners of parent as rough guidance for the time being, we decide what and how muchto each to each term by taking into account the current economic circumstances, financial conditions, earnings forecasts and other parameters.

■ Total return ratio* Total return ratio = returns of profits (dividends + share buybacks) / profit attributable to owners of parent

Total return 30.5%
ratio

Dividends 21.7%
ratio

31.0%

32.2%

20.1%

22.4%

30.2%

33.5%
21.1%

34.2%

41.4%

Aiming to achieve a
total return ratio of
approx. 40%

32.9%

24.6%

24.7%

Total return
6.6 billion yen 7.1 billion yen 6.5 billion yen
amount
5.5 billion yen

8.1 billion yen

8.9 billion yen

9.8 billion yen

Share buybacks
Total dividends

Mar.
‘18
18/3期

■ Dividend per share

19/3期
Mar. ‘19

Mar. ‘20
20/3期

Mar. ‘21
21/3期

22/3期
Mar. ‘22

30 yen30 yen30 yen30 yen35 yenMar. ‘18

Mar.
‘19
19/3期

Mar. ‘20
20/3期

Mar. ‘21
21/3期

Mar.
‘22
22/3期

18/3期

II. Management Strategies

Mar.
‘23
23/3期

45 yenMar. ‘23
23/3期

24/3期
Mar.
‘24

Mar.
‘25 (Forecast)
25/3期

55 yen60 yenMar. ‘24
24/3期

Mar.
‘25 (Forecast)
25/3期

Plan to increase
dividends for four
consecutive periods

Financial Results for the Fiscal Year Ended March 31st, 2024

P.32

7. Capital Policy (3) Reduction of Strategic Shares Accelerated the reduction of strategic shares centered on those of financial institutions and non-local
companies.
 As a result, achieved the reduction target (10% or more of the balance) announced in the previous year.
 Continue reviewing whether it is appropriate to keep holding each issue and consider reduction.
■ Balance of strategic shares, number of issues, ratio to consolidated net assets■ Breakdown of balance of strategic shares(*Figures are for NCB who has the largest balance of strategic shares in the NNFH Group)- In FY2023, we accelerated the reduction of financial institution sharesand listed company shares for non-local companies (e.g., companies
in Kanto and Kansai):Market value

28.5%
24.6%

Ratio toconsolidated net
assets

1,567

（297）

1,331

1,296

（161）

（181）

（229）

Mar. 31, 2023

Less than
20%

20.5%

1,252

(100 million yen):Book Value

24.7%

24.4%

(excl. shares deemed to be held)

1,198(133) （100）Issuer attribute
Financial
institutions
Non-local
companies

Sold, etc.: ( 321)
Share price fluctuated: +188

(e.g., Kanto, Kansai)

Local
companies
586

541

538

（6)

414

(110)

(6)

310
（6)

297
(5)

II. Management Strategies

No. ofStocksBook
Value

Listed

19

70

2

1

Not listed

3

33

2

32

Listed

25

35

4

13

Not listed

20

25

20

25

Listed

73

283

62

266

Not listed

152

78

151

77

Reduce 10% or more of the balance243(book value basis)(2)

End of Mar. ‘20 End of Mar. ‘21 End of Mar. ‘22 End of Mar. ‘23 End of Mar. ‘24*The figures in parentheses in the graph are
the number of shares deemed to be held

Book
Value

Strategic share reduction target during MTBP period(announced in Dec. 2023)＜(21%)＞

316

No. ofstocks524

No. ofstocks317

Mar. 31, 2024

End of Mar. ‘26

MTBP period (Apr. 2023-Mar. 2026)⇒

Reduced the balance by 21% from Mar. 31, 2023 to Mar.
31, 2024 and achieved the target earlier than planned

Financial Results for the Fiscal Year Ended March 31st, 2024

P.33

MEMO

The Economic Environment
in Kyushu/Fukuoka

Ref. The Economic Environment in Kyushu/Fukuoka

Financial Results for the Fiscal Year Ended March 31st, 2024

P.35

1. Key Economic Indicators<Mining/manufacturing production, shipment, and inventory in Kyushu><Import/export of the Kyushu economic zone>(Million yen)

ExportImportProduction

Shipment

Inventory(Seasonally adjusted, annual average in 2015 = 100)Jan ’21 Apr ‘21 Jul ‘21 Oct ‘21 Jan ’22 Apr ‘22 Jul ‘22 Oct ‘22 Jan ’23 Apr ‘23 Jul ‘23 Oct ‘23 Jan ’24

Jan ‘21 Apr ‘21 Jul ‘21 Oct ‘21 Jan ’22 Apr ‘22 Jul ‘22

Source: Moji Customs, MOF(10K people)

Source: Kyushu Bureau of Economy, Trade and Industry<Total unemployment rate and number of people in theworkforce in Kyushu and Okinawa>
Number of people in theworkforce (left axis)

Oct ‘22 Jan ’23 Apr ‘23 Jul ‘23 Oct ‘23 Jan ’24<Consumer price index in Kyushu (YoY change)>
Consumer price index (CPI)

Total unemployment rate(right axis)

CPI core (excl. fresh food)
CPI core core (excl. fresh food and energy)

-0.5
-1.5
Jan-Mar 2021

Jan-Mar 2022

Jan-Mar 2023

Jan-Mar 2024

Source: Ministry of Internal Affairs and Communications

Ref. The Economic Environment in Kyushu/Fukuoka

Jan ‘21 Apr ‘21 Jul ‘21 Oct ‘21 Jan ’22 Apr ‘22 Jul ‘22 Oct ‘22 Jan ’23 Apr ‘23 Jul ‘23 Oct ‘23 Jan ’24
Source: Ministry of Internal Affairs and Communications

Financial Results for the Fiscal Year Ended March 31st, 2024

P.36

2. Trends in Local Economies<Business Survey Index> (Difference of “up”-”down” compared to previous quarter)(1) Business sentiment among local enterprises• The business survey index for Northern Kyushu in theJanuary-March 2024 quarter saw the index in the
manufacturing sector fall from the positive to negative
territory and the index in the non-manufacturing sector
also fall albeit still in the positive territory, resulting in theindex for all industries worsening by 10.4 percentage
points to minus 3.2.
• The outlook for the April-June 2024 quarter in Northern
Kyushu is that the index in the manufacturing sector will
likely improve, although it will remain in negative territory,
while the index will move sideways in the nonmanufacturing sector, improving the index for allindustries to minus 0.2.

Apr-Jun 2023 Jul-Sep 2023
All industries
Northern
Kyushu

6.2

2.8

7.2

(3.2)

(0.2)

3.7

Manufacturing

1.9(11.4)

1.9(12.7)(1.9)

0.6

Nonmanufacturing

7.8

8.2

9.2

0.5

0.5

4.9

0.2

0.7

13.6

(5.5)

3.5

5.5

Manufacturing

(3.7)

(6.7)

11.9

(12.7)

6.7

8.2

Nonmanufacturing

2.0

4.0

14.4

(2.3)

2.0

4.3

All industries
Southern
KyushuOct-Dec 2023 Jan-Mar 2024 Apr-Jun 2024 Jul-Sep 2024
(previous)(present)(outlook I)(outlook II)

Source: Fukuoka Local Finance Branch Bureau, Kyushu Local Finance Bureau(10,000 people)<Foreign visitors to Kyushu>(2) Foreign visitors to Kyushu
In 2023, the number of foreign visitors to Kyushu was 3.17 million, regaining the 3
million range for the first time in a while with recovery from the COVID-19
pandemic, while not reaching the past record of 5.11 million attained in 2018.
<Foreign visitors to Kyushu>(Persons)
Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sep.

Oct.

Nov.

Dec.

2019 429,268 389,410 399,311 380,770 369,933 423,361 418,878 330,240 269,772 256,633 276,087 278,363
2020 289,487 100,192 11,102
37
273
11
81
89
84
223
820
2,414
2021

2,129

191

349

352

264

261

453

191

400

458

630

441

2022
533
597
2,144
5,222
6,264
5,258
8,034 11,108 13,823 49,116 123,538 176,560
2023 205,477 201,758 223,239 234,552 224,506 251,307 275,142 272,036 271,814 317,407 338,833 358,231
2024 366,465 341,619 371,057

Ref. The Economic Environment in Kyushu/Fukuoka

Jan. ‘19

Jul. ‘19 Jan. ‘20 Jul. ‘20 Jan. ‘21 Jul. ‘21 Jan. ‘22 Jul. ‘22 Jan. ‘23 Jul. ‘23 Jan. ‘24
Number of visitors include cruise ship tourists.
Source: Kyushu District Transport Bureau, Ministry of Justice Immigration Bureau

Financial Results for the Fiscal Year Ended March 31st, 2024

P.37

2. Trends in Local Economies(3) Trends in key industries(Automobiles)
 The automobile industry in Kyushu has grown steadily as one assembly plant after
another opened and a cluster of auto-related companies (component manufacturing,processing, etc.) was formed in northern Kyushu. The region, which is one of thelargest auto-producing centers in the world with an annual capacity of 1.5 million
units, has become an auto industry hub that can handle whole process fromdevelopment and design to production, with the establishment of a multitude of
development centers.
 In 2023, 1.368 million cars were produced, increasing YoY for the first time in four
years as production had decreased for three consecutive years from 2020 to 2022
mainly due to supply chain disruptions and semiconductor shortages during the
COVID-19 pandemic.
(Semiconductors)
 The semiconductor-related industry in Kyushu saw some semiconductor plants being
closed/consolidated after the 2008 economic crisis. However, global leaders in CMOS
image sensors, on-vehicle microcomputers, etc. and numerous SMEs that support
them have clustered together in Kyushu, including the world’s largest semiconductor
maker, TSMC, and the Sony Group spending approximately 1 trillion yen to build a
new plant in Kikuyo-machi, Kumamoto Prefecture with a plan to start production
before the end of 2024. This triggered successive investments in semiconductor
plants and by semiconductor suppliers throughout Kyushu, creating “Silicon Island
Kyushu” comprising approximately 1,000 enterprises.
In 2023, IC production grew 24.0% YoY in terms of value to 1,153.3 billion yen,outperforming the previous year in the third consecutive year and exceeding the 1trillion-yen mark for the first time in 16 years since 2007. Although production
volume is still less than half of its peak, production value has been growing due to thehigher values added to products.

Ref. The Economic Environment in Kyushu/Fukuoka<Auto production volume in Kyushu and its share in the
country>(10,000 units)
Production
volumeJan. ‘21 Apr. ‘21

Jul. ‘21

Share in the
country

Oct ‘21 Jan. ‘22

Apr. ‘22 Jul. ‘22 Oct ‘22 Jan. ‘23 Apr. ‘23 Jul. ‘23

Oct ‘23

Source: Kyushu Bureau of Economy, Trade and Industry<IC production amount in Kyushu and its share in the
country>(100 million yen)

Production
volumeShare in the
countryJan. ‘21 Apr. ‘21 Jul. ‘21 Oct ‘21 Jan. ‘22 Apr. ‘22

Jul. ‘22 Oct ‘22

Jan. ‘23 Apr. ‘23 Jul. ‘23 Oct ‘23 Jan. ‘24

Source: Ministry of Economy, Trade and Industry

Financial Results for the Fiscal Year Ended March 31st, 2024

P.38

MEMO

Financial Results for the Fiscal Year Ended March 31st, 2024

P.39

Supplementary Materials
on Performance

Ref. Supplementary Materials on Performance

Financial Results for the Fiscal Year Ended March 31st, 2024

P.40

1. Statement of Income (1) Fiscal Year Ended March 31st, 2024 - YoY ComparisonsFiscal year ended March 31st, 2024
Results
NNFH (A)(100 million yen)

NCB (B)(A) – (B)(consolidated)

NNFH (A)YoY change
NCB (B)Fiscal year ended March 31st, 2023
Results
NNFH (A)(A) – (B)(consolidated)

NCB (B)(A) – (B)(consolidated)

Ordinary income

1,856

1,575

281

252

254

△2

1,604

1,321

283

Gross operating profit[Core gross operating profit]

1,098[1,206]
910

883
[991]
849

215
[215]
61

16
[20]
(27)

(5)
[(1)]
(30)

21
[21]
3

1,082
[1,186]
937

888
[992]
879

194
[194]
58

838
287
6
240
10
(63)
(108)
802

799
280
5
118
0
(84)
(108)
665

39
7
1
122
10
21
0
137

39
5
1
109
14
12
(0)
129

78
[79]
7
72
6
7
7
6
77
(1)
0
0
(0)
78
23
6
48

0
2
0
13
(4)
9
0
8
14
[14]
14
1
(56)
10
(6)
(72)
(56)
(9)
0
(1)
(8)
(63)
1
2
(68)

773
205
4
102
0
(93)
(104)
651

218
[325]
3
214
64
146
49
(32)
279
(7)
(3)
4
271
83
188

26
75
1
16
0
9
(4)
14
(19)
[(16)]
9
(29)
103
121
10
(7)
75
(3)
0
4
71
28
43

812
210
5
211
14
(81)
(104)
780

296
[404]
10
286
70
153
56
(26)
356
(8)
(3)
4
(0)
349
106
6
236

26
77
1
29
(4)
18
(4)
22
(5)
[(2)]
23
(28)
47
131
4
(79)
19
(12)
0
3
(8)
8
29
2
(25)

301
[406]
(13)
314
23
22
52
53
337
4
(3)
1
8
341
77
4
261

237
[341]
(6)
243
(39)
25
39
(25)
204
(4)
(3)
0
200
55
145

64
[65]
(7)
71
62
(3)
13
78
133
8
0
1
8
141
22
4
116

66

53

13

27

20

7

39

33

6

Net interest income(Interest on loans and discounts)(Interest and dividends on securities)(Interest on deposits and negotiable certificates of deposit)

Fees and commissions
Trading income
Other operating income(Net gains (losses) related to bonds)
Expenses
Net business profits[Core net business profits]
Provision for general reserve for possible loan losses

A

Business profits
Extraordinary gains (losses)
Gains (losses) on equity securities (excluding losses on write-offs of DES)

Losses from disposal of non-performing loans

B

Other extraordinary gains (losses)
Ordinary profit
Extraordinary profit (loss)
Gains on disposition of fixed assets
Impairment loss on fixed assets
Other extraordinary profit (loss)
Profit before income taxes
Income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent
Credit cost

A+B

Ref. Supplementary Materials on Performance

Financial Results for the Fiscal Year Ended March 31st, 2024

P.41

1. Statement of Income (2) Fiscal Year Ended March 31st, 2024 – Comparison with Previous Forecast
Fiscal year ended March 31st, 2024
Results(100 million yen)

NNFH (A)

NCB (B)(A) – (B)(consolidated)

Ordinary income
Gross operating profit[Core gross operating profit]
Net interest income(Interest on loans and discounts)(Interest and dividends on securities)(Interest on deposits and negotiable certificates of deposit)

Fees and commissions
Trading income
Other operating income(Net gains (losses) related to bonds)
Expenses
Net business profits[Core net business profits]
Provision for general reserve for possible loan losses

A

Business profits
Extraordinary gains (losses)
Gains (losses) on equity securities (excluding losses on write-offs of DES)

Losses from disposal of non-performing loans

B

Other extraordinary gains (losses)
Ordinary profit
Extraordinary profit (loss)
Gains on disposition of fixed assets
Impairment loss on fixed assets
Other extraordinary profit (loss)
Profit before income taxes
Income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent
Credit cost

A+B

Previous forecast for fiscal year ended
March 31st, 2024〔Note〕

Comparison with previous forecast
NNFH (A)
NCB (B)(A) – (B)

NNFH (A)(consolidated)

NCB (B)(A) – (B)(consolidated)

1,856
1,098
[1,206]
910
838
287
6
240
10
(63)
(108)
802
296
[404]
10
286
70
153
56
(26)
356
(8)
(3)
4
349
106
6
236

1,575
883
[991]
849
799
280
5
118
0
(84)
(108)
665
218
[325]
3
214
64
146
49
(32)
279
(7)
(3)
4
271
83
188

281
215
[215]
61
39
7
1
122
10
21
0
137
78
[79]
7
72
6
7
7
6
77
(1)
0
0
78
23
6
48

102
(56)
[42]
31
2
19
1
3
(2)
(89)
(98)
(1)
(55)
[43]
7
(62)
73
60
(11)
3
11
(4)
0
3
8
9
2
(4)

80
(67)
[31]
31
1
20
0
2
0
(100)
(98)
0
(67)
[30]
3
(71)
64
53
(11)
1
(6)
(3)
0
3
(10)
2
(12)

22
11
[11]
0
1
(1)
1
1
(2)
11
0
(1)
12
[13]
4
9
9
7
0
2
17
(1)
0
0
18
7
2
8

1,754
1,154
[1,164]
879
836
268
5
237
12
26
(10)
803
351
[361]
3
348
(3)
93
67
(29)
345
(4)
(3)
1
341
97
4
240

1,495
950
[960]
818
798
260
5
116
16
(10)
665
285
[295]
285
93
60
(33)
285
(4)
(3)
1
281
81
200

259
204
[204]
61
38
8
121
12
10
138
66
[66]
3
63
(3)
7
4
60
60
16
4
40

66

53

13

(4)

(7)

3

70

60

10

(Note) Forecast at the time of a financial results briefing for the six months ended September 30th, 2023 (held on December 1, 2023)

Ref. Supplementary Materials on Performance

Financial Results for the Fiscal Year Ended March 31st, 2024

P.42

1. Statement of Income (3) Forecast for the Fiscal Year Ended March 31st, 2025 – YoY ComparisonsFiscal year ended March 31st, 2025
Forecast
NNFH (A)(100 million yen)

NCB (B)(A) – (B)(consolidated)

Ordinary income
Gross operating profit[Core gross operating profit]
Net interest income(Interest on loans and discounts)(Interest and dividends on securities)(Interest on deposits and negotiable certificates of deposit)

Fees and commissions
Trading income
Other operating income(Net gains (losses) related to bonds)
Expenses
Net business profits[Core net business profits]
Provision for general reserve for possible loan losses

A

Business profits
Extraordinary gains (losses)
Gains (losses) on equity securities (excluding losses on write-offs of DES)

Losses from disposal of non-performing loans

B

Other extraordinary gains (losses)
Ordinary profit
Extraordinary profit (loss)
Gains on disposition of fixed assets
Impairment loss on fixed assets
Other extraordinary profit (loss)
Profit before income taxes
Income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent
Credit cost

A+B

Ref. Supplementary Materials on Performance

NNFH (A)YoY change
NCB (B)Fiscal year ended March 31st, 2024
Results(A) – (B)(consolidated)

NNFH (A)

NCB (B)(A) – (B)(consolidated)

1,803
1,240
[1,265]
983
888
245
33
242
10
5
(25)
820
421
[446]
2
419
(9)
75
73
(11)
410
(11)
(9)
2
399
123
6
236

1,527
1,027
[1,052]
921
847
239
32
118
0
(12)
(25)
681
346
[371]
1
345
(5)
75
64
(16)
340
(10)
(9)
2
330
100
188

276
213
[213]
62
41
6
1
124
10
17
139
75
[75]
1
74
(4)
0
9
5
70
(1)
0
0
69
23
6
48

(53)
142
[59]
73
50
(42)
27
2
0
68
83
18
125
[42]
(8)
133
(79)
(78)
17
15
54
(3)
(6)
(2)
50
17
0
34

(48)
144
[61]
72
48
(41)
27
0
0
72
83
16
128
[46]
(2)
131
(69)
(71)
15
16
61
(3)
(6)
(2)
59
17
42

(5)
(2)
[(2)]
1
2
(1)
0
2
0
(4)
0
2
(3)
[(4)]
(6)
2
(10)
(7)
2
(1)
(7)
0
0
0
(9)
0
0
(8)

1,856
1,098
[1,206]
910
838
287
6
240
10
(63)
(108)
802
296
[404]
10
286
70
153
56
(26)
356
(8)
(3)
4
349
106
6
236

1,575
883
[991]
849
799
280
5
118
0
(84)
(108)
665
218
[325]
3
214
64
146
49
(32)
279
(7)
(3)
4
271
83
188

281
215
[215]
61
39
7
1
122
10
21
0
137
78
[79]
7
72
6
7
7
6
77
(1)
0
0
78
23
6
48

75

65

10

9

12

(3)

66

53

13

Financial Results for the Fiscal Year Ended March 31st, 2024

P.43

2. Balance Sheet (1) Assets

NNFH(Consolidated)(100 million yen)

NCB

Mar. 31, 2020 Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024

Mar. 31, 2020

Mar. 31, 2021

Mar. 31, 2022

Mar. 31, 2023

Mar. 31, 2024

AssetsCash and due from banks

17,147

17,38826,147

19,46622,00617,007

17,10325,597

19,112

21,613

Call loans and bills bought

12

-

-

80

76

432

300

400

390

336

Monetary claims bought

370

367

396

427

477

-

-

-

-

-

Trading account assets

14
54

1
113

117

116

117

14

1

-

-

-

54

113

117

116

117

Securities

12,97915,06817,733

17,927

18,032

12,87814,89917,537

17,573

17,657Loans and bills discounted(YoY % change)

75,5412.9%

85,43913.1%

84,709(0.9%)

89,554
5.7%

91,782
2.5%

73,413
2.9%

83,18813.3%

82,360(1.0%)

87,3796.1%

89,594
2.5%

144

111

228

173

94

144

111

228

173

94

1,019
1,160

804
1,154

1,026
1,135

781
1,118

816
1,109

848
1,101

Money held in trust

Foreign exchanges
Other assets
Tangible fixed assets

889
1,196

Intangible fixed assets
Retirement benefit assets (prepaid pension costs)
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Allowance for loan losses
Allowance for investment losses
Total assets

1,156
1,176

903
1,162

991
1,169

37

35

42

52

52

31

30

37

46

48

53
7

178
5

75
21

80
64

250
11

231
-

233
-

259
-

267
-

268
-

180
(347)

146
(384)

158
(370)

147
(358)

170
(374)

202

166

176

164

186

(411)

(441)

(425)

(405)

(423)

(6)

(6)

(6)

(6)

(6)

(5)

(5)

(5)

(4)

(4)

134,831

105,990

117,895

128,217

126,767

131,468

108,228

120,756

131,279

129,852(Loans to MoF excluded from total loans and bills discounted)

Ref. Supplementary Materials on Performance

Financial Results for the Fiscal Year Ended March 31st, 2024

P.44

2. Balance Sheet (2) Liabilities and Net Assets
NNFH(Consolidated)(100 million yen)

NCB

Mar. 31, 2020

Mar. 31, 2021

Mar. 31, 2022

Mar. 31, 2023

Mar. 31, 2024

Mar. 31, 2020

Mar. 31, 2021

Mar. 31, 2022

Mar. 31, 2023

Mar. 31, 2024

Deposits(YoY % change)

84,816
4.8%

92,955
9.6%

95,703
3.0%

97,9182.3%

101,772
3.9%

82,916
4.9%

90,7559.5%

93,3502.9%

95,552
2.4%

99,3994.0%

Negotiable certificates of deposit
Call money and bills sold
Securities sold under repurchase agreements
Cash collateral received for securities lent
Borrowed money
Foreign exchanges
Bonds payable
Borrowed money from trust account
Other liabilities
Provision for stock-based payments for officers

3,495
390
2,070
891
9,942
1
100
8
1,000
37
2
16
14
0
5
149
202
103,140
500
1,295
2,710
(99)
4,406
470
(18)
299
(145)
607
75
5,088
108,228

1,885
2,081
1,943
411
14,377
2
32
1,076
5
3
12
13
0
138
147
166
115,247
500
1,272
2,845
(86)
4,531
652
(14)
296
(38)
897
81
5,509
120,756

2,643
5,100
2,511
872
17,552
2
48
1,140
48
2
8
11
0
8
147
176
125,972
500
1,211
3,042
(55)
4,698
386
(0)
294
(157)
523
86
5,307
131,279

1,674
5,125
2,659
2,939
12,497
5
52
1,202
0
46
2
5
12
0
11
146
164
124,457
500
1,187
3,255
(57)
4,885
258
10
294
(148)
414
96
5,394
129,852

2,477
1,045
2,262
2,382
17,591
7
53
936
0
20
2
4
12
0
86
146
186
128,983
500
1,176
3,413
(66)
5,023
433
7
297
(14)
723
102
5,848
134,831

3,479
390
2,070
891
9,884
1
100
8
722
2
16
14

1,873
2,081
1,943
411
14,191
2
32
759
2
11
12

2,570
5,100
2,511
872
17,325
2
48
791
2
8
11

1,672
5,125
2,659
2,939
12,422
5
52
805
2
5
12

2,449
1,045
2,262
2,382
17,500
7
53
481
2
4
11

77
147
180
100,898
857
857
2,644
4,358
453
(18)
299

157
145
146
112,521
857
857
2,751
4,465
627
(14)
296

59
144
158
122,951
857
857
2,899
4,614
358
(0)
294

16
144
147
121,556
857
857
2,964
4,678
229
10
294

80
143
170
125,989
857
857
3,068
4,783
393
7
297

734

909

653

533

697

5,092
105,990

5,374
117,895

5,266
128,217

5,212
126,767

5,479
131,468

Liabilities and Net Assets

Retirement benefit liability (Reserve for employee retirement benefits)

Provision for retirement benefits for directors (and other officers)

Provision for reimbursement of deposits
Provision for contingent losses
Provision under special laws
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Share capital
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 landRemeasurements of defined benefit plans
Total accumulated other comprehensive income (Total valuation and translation adjustments)

Non-controlling interests
Total net assets
Total liabilities and net assets

Ref. Supplementary Materials on Performance

Financial Results for the Fiscal Year Ended March 31st, 2024

P.45

3. Average Amount Outstanding, Yield, and Interest of Main Accounts (Interim) (NCB)(Fiscal year ended)
Forecast(100 million yen)March 31st, 2020

■LoansJapan
Business loans
Housing loans and loans for apartment buildings(Housing loans)(Loans for apartment buildings)

Consumer loans

Interest

Avg. amount outstanding

Yield

71,065

1.08%

766

79,33543,3090.76%

32851,182

24,8851.13%

282

16,433

1.17%

8,452

A

Loan to deposit simple spread

A-E

March 31st, 2022
Interest

Avg. amount outstanding

0.97%

773

81,8550.69%

353

53,17925,198

1.09%

274

192

16,780

1.11%

1.06%

90

8,418

2,871

5.43%

156

2,955

725

2.45%

18

645

1.19%

71,7901.09%

784

79,9800.98%

International
Total

March 31st, 2021

Yield

Avg. amount outstanding

1.08%

March 31st, 2023
Interest

Avg. amount outstanding

0.94%

766

81,5220.67%

359

52,17425,622

1.04%

268

186

17,435

1.05%

1.04%

88

8,188

4.94%

146

Avg. amount outstanding

March 31st, 2025

0.93%

757

0.68%

356

26,1971.01%

183

17,992

1.03%

84

3,055

4.56%

139

8

574

0.99%

781

82,429

0.94%

Yield

Interest

Yield

Interest

Avg. amount outstanding

88,0380.88%

775

89,7910.90%

817

57,6860.65%

374

58,334

0.70%

410

264

27,1450.97%

265

28,119

0.95%

268

1.01%

181

18,6400.96%

18019,274

0.93%

180

8,205

1.01%

83

8,505

1.00%

85

8,845

0.99%

88

3,151

4.33%

137

3,207

4.25%

136

3,338

4.18%

140

6

575

2.81%

16

511

4.72%

24

683

4.46%

30

771

82,0960.94%

773

88,5480.90%

79990,474

0.93%

847

0.93%

Yield

March 31st, 2024
Interest

0.97%

Yield

0.94%

0.90%

0.90%

■Securities
10,2950.63%

65

10,3350.46%

47

12,8790.53%

69

14,1820.65%

92

13,1701.02%

134

14,565

0.75%

109

8,500

0.22%

19

8,594

0.18%

15

10,8050.16%

17

12,1720.22%

27

11,2370.30%

33

11,556

0.25%

29

606

4.27%

26

588

4.27%

25

594

5.71%

34

569

7.31%

42

552

6.69%

37

527

9.02%

48

B

1,189

1.70%

20

1,153

0.57%

7

1,479

1.18%

17

1,441

1.62%

23

1,380

4.64%

64

2,482

1.31%

33

2,964

2.60%

77

2,281

2.22%

51

2,738

2.07%

57

4,122

2.74%

113

4,135

3.54%

146

3,491

3.72%

130

C

13,2591.07%

142

12,6170.77%

98

15,6170.80%

12518,3041.12%

205

17,3051.62%

280

18,056

1.32%

239

Japan
Bonds
StocksOther
International
Total
Gain or loss from cancellation of
investment trust

13

D

Excluding gain or loss from cancellation of investment trust
B-D
Japan: Other
1,189
0.60%
Total

C-D

13,259

(7)

(0)

(2)

31

-

7

1,153

1.20%

14

1,479

1.22%

18

1,441

1.76%

25

1,380

2.37%

33

2,482

1.31%

33

0.97%

129

12,6170.83%

105

15,6170.81%

126

18,3041.13%

207

17,305

1.44%

249

18,056

1.32%

239■Deposits and negotiable certificates of deposit
85,2420.01%

1191,3360.01%

796,5600.00%

498,6720.00%

2101,9790.00%

3

103,346

0.03%

29

LiquidSmall, fixed-term

53,9870.00%

062,6060.00%

068,7490.00%

071,8380.00%

076,5260.00%

179,8370.03%

23

16,6050.02%

416,1160.01%

215,4830.01%

114,6930.00%

013,8260.01%

012,9380.02%

3Large + negotiable certificates of deposit

14,6500.04%

712,6140.03%

412,3280.02%

212,1410.01%

111,6280.01%

110,571

0.03%

3

247

0.40%

0

303

0.30%

1

320

0.19%

1

256

0.62%

2

195

1.40%

3

242

1.04%

3

85,4900.01%

1191,6390.01%

896,8800.00%

598,9280.00%

4102,1740.01%

5

103,588

0.03%

32

Japan

International
Total

E

Ref. Supplementary Materials on Performance

Financial Results for the Fiscal Year Ended March 31st, 2024

P.46

4. Balance and Valuation Gains or Losses of Securities (NCB)(100 million yen)March 31st, 2020

March 31st, 2021

March 31st, 2022

March 31st, 2023

March 31st, 2024

■Balance sheet amountGovernment bonds

2,125

3,655

5,006

4,959

4,440

Local government bonds

2,611

3,321

4,007

4,219

4,798

Corporate bonds

3,124

2,592

2,215

1,859

1,650

Stocks

1,024

1,313

1,147

1,206

1,368

Foreign securities

2,802

2,623

3,334

3,711

3,372

2,802

2,623

3,334

3,711

3,372

Other

1,192

1,394

1,828

1,619

2,029

Total securities

12,87814,89917,537

17,573

17,657

Government bonds

19

(4)

(78)

(179)

(301)

Local government bonds

(5)

(3)

(17)

(25)

(40)

Corporate bonds

22

15

4

(9)

(27)

Stocks

437

722

577

643

847

Foreign securities

155

71

(107)

(214)

(186)

155

71

(107)

(214)

(186)

Other

23

97

133

108

260

Total securities

651

898

512

324

553

(Of which, foreign bonds)■Valuation gains or losses(Of which, foreign bonds)

Ref. Supplementary Materials on Performance

Financial Results for the Fiscal Year Ended March 31st, 2024

P.47

5. Breakdown of Credit Cost by Cause (NCB)(Fiscal year ended)
March 31st, 2020

March 31st, 2021

March 31st, 2022

March 31st, 2023

14

26

(18)

(6)

3

Changes in loan-loss reserve ratio

6

0

(3)

(3)

(2)

Changes in balance

8

26

(14)

0

5

39

59

52

41

52

Falling collateral value

7

3

11

3

2

Downgrade: Lower borrower assessment

62

84

71

44

70

Upgrade: Improved borrower assessment

(6)

(23)

(0)

(0)

(7)

Collection

(27)

(16)

(28)

(13)

(17)

Loss (gain) on removal from balance sheet

(2)

7

(2)

0

(0)

Responsibility-sharing system

5

4

0

4

4

Other

(0)

(0)

(0)

3

(0)

(100 million yen)

Provision for general reserve for possible loan losses (Reversal of allowance
for loan losses)

Cost of depreciation and specific provisions

A

B

March 31st, 2024

Recoveries of written-off claims

C

1

2

3

2

3

Credit cost

D=A+B-C

53

84

31

33

53

Average amount of loans outstandingE

71,79079,98082,42982,09688,548Credit cost rateD÷E

0.073%

0.105%

0.038%

0.040%

0.060%

Ref. Supplementary Materials on Performance

Financial Results for the Fiscal Year Ended March 31st, 2024

P.48

6. Capital Adequacy Ratio (Consolidated)■Capital Adequacy Ratio (Consolidated)
Mar. 31, 2024

Mar. 31, 2023

Mar. 31, 2023

5,003

243

4,760

Directly issued qualifying common share capital

4,981

135

4,846

Accumulated other comprehensive income

(14)

134

(148)

Adjusted noncontrolling interests

3

0

3

Total of reserves

13

1

12

Eligible capital instruments subject to transitional arrangements

-

-

-

Land revaluation excess subject to transitional arrangements

-

(20)

20

Noncontrolling interests subject to transitional arrangements

20

(8)

28

251

93

158

(of which, shortfall of eligible provisions to expected losses)

27

(24)

51

(of which, net defined benefit asset)

188

118

70

(100 million yen)Core capital: instruments and reserves

Core capital: regulatory adjustments

A

B

CapitalC = A-B

4,752

150

4,602

Risk-weighted assets, etc.

D38,260253

38,007

Credit risk-weighted asset

36,8281,200

35,628Operational risk adjustments

1,432

(947)

2,379

12.41%

0.31pt12.10%

Capital adequacy ratio (Consolidated)

Ref. Supplementary Materials on PerformanceC ÷D

Financial Results for the Fiscal Year Ended March 31st, 2024

P.49

MEMO

Financial Results for the Fiscal Year Ended March 31st, 2024

P.50

 These materials have been prepared for the sole purpose of information provision, and do notconstitute an invitation or solicitation to purchase or sell any specific securities.

 Any and all information described herein is subject to change or amendment without notice.
 These materials contain forward-looking statements regarding the future performance of theGroup; however, such statements do not guarantee such future performance and may containrisks and uncertainties.
Please be aware that, due to possible changes in the operating environment, etc., actual
results may differ materially from those that are currently anticipated.

Nishi-Nippon Financial Holdings, Inc.

Financial Results for the Fiscal Year Ended March 31st, 2024

P.51