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

Financial Summaryfor the Fiscal Year 2020 Ended March 31, 2021
May 14, 2021
Lawson Bank, Inc. (https://www.lawsonbank.jp/)

I.

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

1.

Results of Operation (Non-consolidated)

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

(Millions of Yen)FY2020 (12 months)
23,454-766
24,221-0-1

023,73522,364

1,982
1,820
1,834

1,089
1,029
708

Balance Sheets (Non-consolidated)

Cash and due from banks
Securities
Loans
Other assets
Total assets
Deposits
Call money
Borrowed money
Other liabilities
Total liabilities
Total equity
3.

FY2019 (12 months)
25,717-1,066
26,783-

FY2019(As of March 31, 2020)
327,36137
54,764382,163
17,71222,000290,000
29,465359,177
22,985(Millions of Yen)FY2020(As of March 31, 2021)
313,408
4,000
119
51,819369,348
51,07427,000242,700
24,879345,654
23,694FY2019 (12 months)
92.3%

FY2020 (12 months)
95.4%

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

1

Risk-weighted assets
Core capital
Capital adequacy ratio(Millions of Yen)FY2020(As of March 31, 2021)
79,261
11,26014.21%FY2019(As of March 31, 2020)
79,6339,363
11.76%

13,367

FY2020(As of March 31, 2021)
13,49048,86065,42447,67999,037FY2019(As of March 31, 2020)
Number of ATM units installed
Total number of banking
accounts
Number of credit cardcustomers

FY2019 (12 months)
Total number of ATM usage(1,000s)
Average daily ATM usage (no.
of times per day per unit)

FY2020 (12 months)

233,203

212,799

47.2

43.3

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

FY2020(As of March 31, 2021)

FY2019(As of March 31, 2020)
Number of affiliated financial
institutions (banks, companies,depositories) (Note1,2)
Number ofaffiliated
Immediate
services (Note2)
account
Number ofsettlement
affiliatedservicefinancial
institutions

124130-2-1Note:
1. The JA Bank and JF Marine Bank are considered each as an institution depending on business categories.
2. auPAY and WebMoney prepaid card (including Lite) are considered each as an institution depending onservice categories.

2

II.

Financial Statements
1. Balance Sheets (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY2019FY2020(As of March 31, 2020)(As of March 31, 2021)[Assets]
Cash and due from banks
CashDue from banks
Securities
Short-term corporate bonds
LoansOverdraft
Suspense payments in ATMs
Other assets
Prepaid expenses
Accrued income
Other assets
Guarantee deposits for CCP
Tangible fixed assets
Buildings
Leased assets
Other tangible assets
Intangible fixed assets
Software
Software in progress
Other intangible fixed assets
Differed tax assets
Reserve for loan losses
Total assets[Liabilities]
Deposits
Ordinary deposits
Time deposits
Other deposits
Call money
Borrowed money
Suspense receipts of ATM
Other liabilities
Income taxes payable
Accrued expenses
Lease obligations
Other liabilities
Accrued employees’ bonuses
Total liabilities

3327,361
319,492
7,868
37
37
12,736
10,148
422
2
9,722
5,000
18,159135
17,903
119
13,481
11,9091,571
241-2
382,163

313,408
304,595
8,812
4,000
4,000
119
119
13,242
11,071331
11
10,7285,000
14,91097
14,706106
12,435
11,636
747
51
162
-3
369,348

17,712
13,9853,724
222,000290,000
14,437
14,85179
1,803
11,402
1,566
176
359,177

51,07439,403
11,6637
27,000242,700
242,700
12,492
12,161
222
1,809
8,256
1,873
345,654

(Millions of Yen)FY2020(As of March 31, 2021)

FY2019(As of March 31, 2020)[Equity]Common stock
Capital surplus
Capital reserve
Retained earnings
Legal reserve
Other retained earnings
Unappropriated retainedearnings
Total shareholders’ equity
Other unrealized gain onsecurities
Total net unrealized gain andtranslation adjustments
Total equity
Total liabilities and equity

411,600
11,60011,600-214-214

11,60011,60011,600
494
494

-214

494

22,98523,694-0-

022,985382,163

23,694369,348

2.

Statement of Income (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY2019
FY2020(From April 1, 2019 to(From April 1, 2020 toMarch 31, 2020)
March 31, 2021)
Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans
Interest income on due from banks
Other interest received
Fees and commissions income
Exchange fees received
ATM commissions received
Other fees and commissions
incomeOther ordinary income
Reversal of reserve for loan losses
Other ordinary income
Ordinary Expenses
Interest expenses
Interest on deposits
Interest on call money
Interest on borrowed money
Other interest paid
Fees and commissions expensesExchange fees paid
ATM installation commissions
expensesATM commissions expenses
Other fees and commissions
expenses
Other business expenses
Losses on sales of foreignexchange
Losses on sales of bonds
General and administrative expenses
Other ordinary expenses
Provision of reserve for loan losses
Losses on write-off loans
Other ordinary expenses
Ordinary profit

534,299-24
2-6-24
4
34,04614
33,93031,56614
14-0-3
3
31,53935
31,231

101

273

277
1275
32,479
1,042
3
7634
396
7,262
2

1212
30,537781
314426317
7,318
2

3,139

2,934

3,890

3,975

231

406-0-

023,735
438
0
438
1,820

0
22,364
73
1071
1,029

FY2019(From April 1, 2019 toMarch 31, 2020)
Extraordinary profits
Other extraordinary profits
Extraordinary losses
Tangible fixed asset disposal
expenses
Other extraordinary losses
Net income before income taxes
Income taxes
Income taxes
Deferred income taxes
Net income

6(Millions of Yen)FY2020(From April 1, 2020 toMarch 31, 2021)

2
2
101

33

93

32

8
1,721
-112
128-241
1,834

1995
287
208
78
708

3.

Statement of Changes in Equity (Non-consolidated)

FY2019 (From April 1, 2019 to March 31, 2020)(Financial figures are truncated to the unit stated)(Millions of Yen)
Total net unrealized gainand translation
adjustments

Shareholders’ equity
Capitalsurplus
Commonstock

Balance of
beginning of period
Change during
periodNet income
Net change during
period for items
other thanshareholders’ equity
Total change in period
Balance, March 31,2020

Capitalreserves

Retainedearnings
Otherretainedearnings
Deferedretainedearnings

Total
shareholders’ equity

Other
unrealized
gain onsecuritiesTotal net
Total equity
unrealized
gain andtranslation
adjustments

11,60011,600-2,04821,151--

21,151

-

-

1,834

1,834-

-

1,834

-

---

--

-

-

-

1,834

1,834

-

-

1,834

11,60011,600-214

22,985--22,985

FY2020 (From April 1, 2020 to March 31, 2021)(Financial figures are truncated to the unit stated)(Millions of Yen)
Total net unrealized gainand translation
adjustments

Shareholders’ equity
Capitalsurplus
Commonstock

Balance ofbeginning of period
Change during
periodNet income
Net change during
period for itemsother thanshareholders’ equity
Total change in period
Balance, March 31,2021

Capitalreserves

Retainedearnings
Otherretainedearnings
Deferedretainedearnings

Total
shareholders’ equity

Other
unrealized
gain onsecurities

Total net
Total equity
unrealized
gain andtranslation
adjustments

11,60011,600-214

22,985--22,985-

-

708

708

-

-

708-

-

-

-

000-

-

708

708

00

708

11,60011,600494

23,6940

023,6947

4.

Cash Flow Statement (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY2019FY2020(From April 1, 2019 to (From April 1, 2020 toMarch 31, 2020)
March 31, 2021)
I Cash flows from operating activities
Income before income taxes

1,721

995

Depreciation

6,450

7,015

Net change in provision of reserve
for loan losses (-)
Net change in accrued employees’
bonuses (-)
Net change in operatingreceivables (-)
Interest income-1
4-911

Interest expenses
Losses (gains) on sales of fixed
assets (-)
Net change in stored items (-)

7-797

24-14

1,042781

93
16

Net change in unsettled money forATMs (-)
Net change in accounts payable

1-28,597

32
13-2,450

564

154

2,287

33,372-24

5Interest paid

-1,042-775

Net change in borrowed money (-)

32,000-42,300

Repayment of lease obligations-5,687-4,258

Other

1,348

1,433

Sub total

9,287-6,783

Payment of corporate taxes, etc.

-538

-233

Refund of sales tax, etc.

504-708

Net change in deposits (-)
Interest received

Net cash generated by operating
activities
II Cash flow from investing activities

9,252-7,725Purchase of securities--4,010

Sales and redemption of securities-10

Purchase of tangible fixed assets-9-18

Purchase of intangible fixed assets-1,625-2,209Net cash provided by (used in)investing activities
III Cash flow from financing activities-1,635

Cash flow from financing activities----

IV Adjustments on cash and cash
equivalents

8-6,227

FY2019(From April 1, 2019 toMarch 31, 2020)
V Net change in cash and cash
equivalents
VI Cash and cash equivalents at
beginning of period
VII Cash and cash equivalents at endof period9(Millions of Yen)FY2020(From April 1, 2020 toMarch 31, 2021)

7,617-13,953

319,744327,361

327,361

313,408

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

Capital Adequacy Raito Information

Risk-weighted assets
Core capital
Capital adequacy ratio
2.

(Millions of Yen)FY2020(As of March 31, 2021)
79,261
11,26014.21%FY2019(As of March 31, 2020)
79,6339,363
11.76%

Claims Classified under the Financial Revitalization Law (Non-consolidated)(Millions of Yen)FY2020(As of March 31, 2021)

FY2019(As of March 31, 2020)
Claims against bankrupt andquasi-bankrupt obligors

00

Doubtful claims

00

Substandard claims

00

13,01813,596

Normal claims
3.

Derivative Transaction
None.

4.

ATM Transactions
FY2019(As of March 31, 2020)
Number of ATM units installed

13,367FY2019 (12 months)
Total number of ATM usage(1,000s)
Average daily ATM usage (no.
of times per day per unit)

FY2020(As of March 31, 2021)
13,490

FY2020 (12 months)

233,203

212,799

47.2

43.3

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

FY2019(As of March 31, 2020)
Number of affiliated financial
institutions (banks, companies,depositories) (Note1,2)
Number ofaffiliated
Immediate
services (Note2)
account
Number ofsettlement
affiliatedservicefinancial
institutions

FY2020(As of March 31, 2021)

124

130-

2-

1

Note:
1. The JA Bank and JF Marine Bank are considered each as an institution depending on business categories.

10

2.

5.

auPAY and WebMoney prepaid card (including Lite) are considered each as an institution depending onservice categories.

Other
FY2019 (12 months)
Interest margin for total fund6.

FY2020 (12 months)-6.54%

General and Administrative Expenses(Millions of Yen)FY2020 (12 months)

FY2019 (12 months)
Personnel expenses

1,611

1,733

Non-personnel expenses

21,89920,396

6,450

7,015

225

234

23,73522,364

Depreciation
Taxes
General and administrativeexpenses
7.

-6.86%

Number of Directors, Auditors, and Employees
FY2019(As of March 31, 2020)
Directors and auditors

9FY2020(As of March 31, 2021)
9Directors

55Auditors

44Employees

145

166

Total

154

175

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

11