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

Financial Summaryfor the First Half of Fiscal Year 2021 Ended September 30, 2021
November 12, 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 provision of generalreserve for loan losses
General and administrativeexpenses
Ordinary business profits
Ordinary profits
Net income
2.

-0011,117

11,458

473
468
366

1,289
1,293
885

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.

1H FY2020 (6 months)
11,590-427
12,018(Millions of Yen)
1H FY2021 (6 months)
12,748-341
13,089FY2020(As of March 31, 2021)
313,408
4,000
119
51,819369,348
51,07427,000242,700
24,879345,654
23,694(Millions of Yen)
1H FY2021(As of September 30, 2021)
339,032
5,000333
50,814395,180
76,38546,000223,600
24,615
370,601
24,5791H FY2020 (6 months)
95.9%

1H FY2021 (6 months)
89.9%

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

1

Risk-weighted assets
Core capital
Capital adequacy ratio

FY2020(As of March 31, 2021)
79,261
11,26014.21%FY2020(As of March 31, 2021)
Number of ATM units installed
Total number of banking
accounts
Number of credit cardcustomers

13,4901H FY2021(As of September 30, 2021)
13,58865,42475,74599,037

117,784

1H FY2020 (6 months)
Total number of ATM usage(1,000s)
Average daily ATM usage (no.
of times per day per unit)(Millions of Yen)
1H FY2021(As of September 30, 2021)
83,485
13,04515.63%

1H FY2021 (6 months)

103,566

118,643

42.1

47.7

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

FY2020(As of March 31, 2021)
Number of affiliated financial
institutions (banks, companies,depositories) (Note1,2)
Number ofaffiliated
Immediate
services (Note2)
account
Number ofsettlement
affiliatedservicefinancialinstitutions

1H FY2021(As of September 30, 2021)

1303782

217Note:1. The JA Bank and JF Marine Bank are considered each as an institution depending on business categories.
2. au PAY and WebMoney prepaid card (including Lite) are considered each as an institution depending onservice categories.

2

II.

Interim Financial Statements
1. Interim Balance Sheets (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY20201H FY2020(As of March 31, 2021)(As of September 30, 2020)[Assets]
Cash and due from banks
CashDue from banks
Securities
Short-term corporate bonds
Loans
Overdraft
Suspense payments in ATMs
Other assets
Prepaid expenses
Accrued income
Other assets
Guarantee deposits forCCP
Tangible fixed assets
Buildings
Leased assets
Other tangible assets
Intangible fixed assets
Software
Software in progress
Other intangible assets
Differed tax assets
Reserve for loan losses
Total assets

3

313,408
304,595
8,812
4,000
4,000
119
119
13,242
11,071331
11
10,728339,032
327,170
11,862
5,000
5,000
333
333
13,903
11,669272
20
11,376

5,000

5,000

14,9109714,706
106
12,435
11,636
747
51
162
-3
369,348

13,51980
13,34098
11,537
10,324
1,211
1
189
-4
395,180(Financial figures are truncated to the unit stated)(Millions of Yen)FY20201H FY2020(As of March 31, 2021)(As of September 30, 2020)[Liabilities]
Deposits
Ordinary deposits
Time deposits
Other deposits
Call money
Borrowed money
Borrowed money
Suspense receipts of ATM
Other liabilities
Income taxes payable
Accrued expenses
Lease obligations
Other liabilities
Accrued employees’ bonuses
Other reserve
Total liabilities[Equity]Common stock
Capital surplus
Capital reserve
Retained earnings
Legal reserve
Other retained earnings
Unappropriated retainedearnings
Total shareholders’ equity
Total equity
Total liabilities and equity

4

51,07439,403
11,6637
27,000242,700
242,700
12,492
12,161
222
1,809
8,256
1,873
183
42
345,654

76,38537,441
38,93212
46,000223,600
223,600
13,471
10,891
498
1,653
7,010
1,729
209
42
370,601

11,60011,60011,600494
494
494

11,60011,60011,600
1,379
1,379
1,379

23,694
23,694369,348

24,57924,579395,180

2.

Interim Statement of Income (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)
1H FY2020
1H FY2021(From April 1, 2020 to(From April 1, 2021 toSeptember 30, 2020)
September 30, 2021)
Ordinary income
Interest income
Interest on loans
Interest and dividends on securities
Interest income on due from banks
Other interest received
Fees and commissions income
Exchange fees received
ATM commissions received
Other business income
Other 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 expenses
Exchange fees paid
ATM installation commissions
expensesATM commissions expenses
Other fees and commissions
expenses
Other business expenses
Losses on foreign exchange
Losses on sale of debentures
including JGB
General and administrative expenses
Other ordinary expenses
Provision of Reserve for Credit
Losses
Losses on Write-Off of Loans
Other ordinary expenses
Ordinary profits
Extraordinary losses
Tangible fixed asset disposal
expenses
Other extraordinary losses

515,67345-0-1115,659
12
15,508138
100
915,205432
134243
172
3,640
1
1,439

16,92021
20-0-01
16,892
22
16,548321
7715,627
362
39
3
194
125
3,802
1
1,591

1,986
214

1,974
234

000-

11,11714

11,458
4-

014
468
10

0
2
1,293
29

929

1-

1H FY2020(From April 1, 2020 toSeptember 30, 2020)
Net income before income taxes
Income taxes
Income taxes, local inhabitant taxes
and the enterprise taxes
Deferred income taxes
Net income6(Millions of Yen)
1H FY2021(From April 1, 2021 toSeptember 30, 2021)

458
91

1,264
37882405

8366-26885

3.

Interim Statement of Changes in Equity

1H FY2020 (From April 1, 2020 to September 30, 2020)(Financial figures are truncated to the unit stated)(Millions of Yen)
Valuation and translation
adjustments

Shareholders’ equity
Capitalsurplus
Commonstock

Balance of
beginning of 11,600
periodChange during
interim period
Net income
Net change
during interim
period for items
other thanshareholders’equityTotal change ininterim period
Balance,
September 30, 11,600
2020

Retainedearnings
Other retained
earnings
Defered retainedearnings

Total
shareholders’equity11,600-214

22,985--22,985

-

366

366

-

-

366

-

------

366

366

-

-

366

11,600152

23,352--

23,352

Capitalreserves

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

1H FY2021 (From April 1, 2021 to September 30, 2021)(Financial figures are truncated to the unit stated)(Millions of Yen)
Valuation and translation
adjustments

Shareholders’ equity
Capitalsurplus
Commonstock

Balance ofbeginning of 11,600
periodChange during
interim period
Net income
Net change
during interim
period for items
other thanshareholders’equityTotal change ininterim period
Balance,
September 30, 11,600
2021

Retainedearnings
Other retained
earnings
Defered retained
earnings

Total
shareholders’equity11,600494

23,69400

23,694

-

885

885-

-

885-

-

-

000-

885

885

00

885

11,6001,379

24,57900

24,579

Capitalreserves

7

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

4.

Interim Cash Flow Statement (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)
1H FY2020
1H FY2021(From April 1, 2020 to(From April 1, 2021 toSeptember 30, 2020)
September 30, 2021)
I Cash flows from operating activities
Income (loss) before income taxes

458

1,264

Depreciation
Net change in provision of reserve
for loan losses (-)
Net change in accrued employees’
bonuses (-)
Net change in operatingreceivables (-)

3,445

3,566-00826-663-547

Interest income-4-21

Interest expenses

432362

Net change in stored items (-)

18-45

Net change in unsettled money forATMs (-)

-354

318

Net change in accounts payable (-)

161

101

16,36025,281

012-427-345

Net change in deposits (-)
Interest received
Interest paid
Losses (gains) on disposal of fixed
assetsNet change in borrowed money (-)

9--32,000-100

Repayment of lease obligations-2,202-2,051

Other

641

421

Sub total-14,116

28,244

Payment of corporate taxes, etc.

-81

-222

Refund of sales tax, etc.

-630

-775

-14,828

27,246-10-5,000

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

104,000-16-11

Purchase of intangible fixed assets-1,479-610-1,496-1,622

Net cash provided by (used in)investing activities

81H FY2020(From April 1, 2020 toSeptember 30, 2020)(Millions of Yen)
1H FY2021(From April 1, 2021 toSeptember 30, 2021)

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

9-----16,324

25,624

327,361

313,408

311,036

339,032

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)
1H FY2021(As of September 30, 2021)
83,485
13,04515.63%FY2020(As of March 31, 2021)
79,261
11,26014.21%

Claims Classified under the Financial Revitalization Law (Non-consolidated)(Millions of Yen)
1H FY2021(As of September 30, 2021)

FY2020(As of March 31, 2021)
Claims against bankrupt andquasi-bankrupt obligors

00

Doubtful claims

00

Substandard claims

01

13,596

14,504

Normal claims
3.

Derivative Transaction
None.

4.

ATM Transactions
FY2020(As of March 31, 2021)
Number of ATM units installed

13,4901H FY2020 (6 months)
Total number of ATM usage(1,000s)
Average daily ATM usage (no.
of times per day per unit)

1H FY2021(As of September 30, 2021)
13,5881H FY2021 (6 months)

103,566

118,643

42.1

47.7

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

FY2020(As of March 31, 2021)
Number of affiliated financial
institutions (banks, companies,depositories) (Note1,2)
Number ofaffiliated
Immediateservices (Note2)
account
Number ofsettlement
affiliatedservicefinancial
institutions

101H FY2021(As of September 30, 2021)

1303782217

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

5.

Other
1H FY2020 (6 months)
Interest margin for total fund6.

-6.52%-6.52%

General and Administrative Expenses
1H FY2020 (6 months)
890

Personnel expenses
Non-personnel expenses
Depreciation
Taxes
General and administrativeexpenses
7.

1H FY2021 (6 months)(Millions of Yen)
1H FY2021 (6 months)
990

10,105

10,339

3,445

3,566

121

127

11,117

11,458

Number of Directors, Auditors, and Employees
FY2020(As of March 31, 2021)

1H FY2021(As of September 30, 2021)

Directors and auditors

99Directors

55Auditors

44Employees

166

172

Total

175

181

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

11