DEVELOPMENTBANK OFJAPAN

Financial Condition

48

•Compliance with Corporate Accounting Standards
The consolidated financial statements of the preceding
consolidated accounting period (April 1, 2003 to March
31, 2004) and the current consolidated accounting period(April 1, 2004 to March 31, 2005) have been audited andcertified by ChuoAoyama Pricewaterhouse Coopers.
The financial statements of the preceding accounting
period (April 1, 2003 to March 31, 2004) and the current
accounting period (April 1, 2004 to March 31, 2005)
have been audited and certified by ChuoAoyama
Pricewaterhouse Coopers.
•Compliance with Accounting Standards for Special
Agencies, etc.
The financial statements of the preceding accounting
period (April 1, 2003 to March 31, 2004) and the current
accounting period (April 1, 2004 to March 31, 2005)
have been audited and certified by ChuoAoyama
Pricewaterhouse Coopers.

49

DEVELOPMENTBANK OFJAPAN

Accounts Based on
Corporate AccountingStandards

50

51

CONSOLIDATED BALANCE SHEETSMillions of yen
2005

March 31

Thousands of U.S. dollars
2004

2005

AssetsCash and Due from banks
Reverse Repurchase Agreements¥

Money Held in Trust (Note 26)
Securities (Notes 4, 13 and 26)
Loans (Note 5)
Other Assets (Note 6)
Premises and Equipment (Note 7)
Deferred Charges on Bonds and Notes
Customers' Liabilities for Acceptances and Guarantees
Allowance for Loan Losses (Note 8)
Allowance for Investment Losses
Total Assets¥

20,556

19,305¥$

191,420

107,999

77,166

1,005,672

4,136
394,840

4,893
426,971

38,521
3,676,695

13,860,747
245,399

14,785,724
304,750

129,069,259
2,285,124

37,6382,594

38,081
2,249

350,485
24,15998,75776,812919,611(280,284)(20,767)(395,881)(13,903)(2,609,967)(193,381)

14,471,618¥

15,326,171

134,757,598

Thousands of U.S. dollars

Millions of yen
2005

$

2005

2004

Liabilities Minority Interests and Equity
Liabilities
Bonds and Notes (Note 9)
Borrowings (Note 10)¥

1,994,801¥

1,780,606$

18,575,297

10,214,800

11,403,450

95,118,726

Other Liabilities (Note 11)
Allowance for Bonus Payments

249,472
1,651

277,824
1,659

2,323,056
15,378

Allowance for Employee Retirement Benefits (Note 21)

32,21898,75732,172
76,812300,014919,611

Acceptances and Guarantees (Note 12)
Total Liabilities¥

Minority Interests
EquityCapital12,591,701¥¥

1,215,461
653,043

Total Equity¥

Total Liabilities, Minority Interests and Equity¥

Net of Taxes (Note 26)

$

−

4,498

Retained Earnings
Net Unrealized Gain on Available-for-sale Securities,

13,572,524¥

1,194,286
540,4031,875,419¥

14,471,618

¥

6,915

117,252,082
41,886$

11,318,195
6,081,043

1,753,646$

17,463,630

15,326,171$

134,757,598

18,95664,392

Accompanying notes are an integral part of these financial statements.

52

CONSOLIDATED STATEMENTS OF OPERATIONS
Thousands of U.S. dollars

Millions of yen
For the Fiscal Years ended March 31

2004

2005

2005

Revenues
Interest Income
Interest on Loans¥

Interest and Dividends on Securities
Interest on Reverse Repurchase Agreements
Interest on Due from banks
Other Interest Income
Fees and Commissions (Note 15)
Other Operating Income (Note 16)
Other Ordinary Income (Note 17)
Collection of Written-off Claims¥

485,098$

3,969,380

424,615

483,195

3,953,959

1,648
5

1,890
12

15,353
48

2
0

0
0

19
1

2,211
16

2,757
−

20,594156

57,30438,768533,614

1,864
14

2,048
217

17,365137

Gains on Sales of Premises and Equipment
Total Revenues¥

487,684¥

528,890$

4,541,246

Expenses
Interest Expenses¥

317,814¥373,924$

2,959,442

Interest on Bonds and Notes
Interest on Borrowings

31,466
271,583

31,615
329,073

293,0092,528,943

Other Interest Expenses

14,76557

13,235
21

137,490
533

Fees and Commissions (Note 18)
Other Operating Expenses (Note 18)
General and Administrative Expenses
Other Ordinary Expenses (Note 20)
Losses on Sales of Premises and Equipment

2,737

2,466

25,49327,14026,036

26,765
11,483

252,726
242,445

Total Expenses
Earnings before Income Taxes¥

35
373,821¥242
414,903$329
3,480,968¥

113,863¥

113,987$

1,060,278

Income Taxes
Current

¥

638
638

¥

0
0

$

5,950
5,950

Deferred
Minority Interests in Net Earnings
Net Earnings
Accompanying notes are an integral part of these financial statements.

53

426,271

−
−

(0)
584
¥

112,639¥

113,987

(0)
5,447
$

1,048,881

CONSOLIDATED STATEMENTS OF EQUITY
Millions of yen
Retained
Earnings

CapitalFor the Fiscal Year ended March 31, 2004
Balance at March 31, 2003¥

1,182,286

Net Change in Unrealized Gain on
Available-for-sale Securities, Net of Taxes¥

426,416

Net Unrealized Gain on
Available-for-sale
Securities, Net of Taxes
264¥

Total Equity¥

1,608,967−

18,692

12,000−−12,000−1,194,286¥

113,987
540,403¥−
18,956113,987
1,753,646

¥

−
−

¥

−
−

¥

540,403¥−−

18,692

Capital Contribution fromthe Japanese Government
Net Earnings
Balance at March 31, 2004
Appropriations: (Note 14)¥

Payments to National Treasury
Total
Unappropriated Retained Earnings

−
¥

−
−

¥

¥

−
¥
¥

−
−

Millions of yen
Retained
Earnings

CapitalFor the Fiscal Year ended March 31, 2005
Balance at March 31, 2004
Net Change in Unrealized Gain on¥

1,194,286

Available-for-sale Securities, Net of Taxes
Capital Contribution fromthe Japanese Government
Net Earnings
Balance at March 31, 2005¥

Unappropriated Retained Earnings¥

18,956¥

1,753,646−(12,041)(12,041)

21,175−
112,639−−

112,639

1,215,461−−¥¥

540,403

Total Equity−−

Appropriations: (Note 14)
Payments to National Treasury
Total

¥

Net Unrealized Gain on
Available-for-sale
Securities, Net of Taxes−¥

653,043¥

6,915

10,636642,406¥

1,875,419

¥

−
−

¥

−

−

10,636¥¥

21,175−−¥¥

Thousands of U.S. dollars
CapitalFor the Fiscal Year ended March 31, 2005
Balance at March 31, 2004$

11,121,017

Net Change in Unrealized Gain on
Available-for-sale Securities, Net of Taxes$

Retained
Earnings

Net Unrealized Gain on
Available-for-sale
Securities, Net of Taxes

5,032,162$

176,524

Total Equity$

16,329,703−(112,132)

197,178−−

197,178−
11,318,195$

1,048,881
6,081,043$−
64,392

1,048,881
17,463,630$

99,044
99,044$$

5,981,999$−(112,132)

Capital Contribution fromthe Japanese Government
Net Earnings
Balance at March 31, 2005
Appropriations: (Note 14)$

Payments to National Treasury
Total
Unappropriated Retained Earnings

−
$
$

−
−

$

−
−
−

−
$
$

−
−

Accompanying notes are an integral part of these financial statements.

54

CONSOLIDATED STATEMENTS OF CASH FLOWS
Thousands of U.S. dollars

Millions of yen
For the Fiscal Years ended March 31

2005

2005

2004

Cash Flows from Operating Activities
Earnings before Income Taxes
Depreciation and Amortization¥

113,863¥

113,987$

1,060,278

910

969

8,474

Amortization of Consolidation Differences
Change in Allowance for Loan Losses

596(50,998)−(37,787)5,558(474,888)

Change in Allowance for Investment Losses

6,985
(8)

2,665
(115)

65,044(76)

46(426,271)(716)(485,098)

432(3,969,380)

317,814373,924

2,959,442(3,175)
846

589
(147)

(29,569)
7,886

(1)
20

1
25

(15)
192

845,506

882,668

7,873,234

213,500(1,188,650)

183,218(1,260,573)

1,988,087(11,068,538)

Interest Income-Cash BasisInterest Expense-Cash Basis(30,832)
424,042

115,713474,911(287,106)
3,948,622(330,978)(387,216)(3,082,020)

OthersSub-total

73,976(32,806)(36,318)(59,299)

688,857(305,486)

Change in Allowance for Bonus Payments
Change in Allowance for Employee Retirement Benefits
Interest Income-Accrual BasisInterest Expense-Accrual Basis
Net Gains and Losses on Securities
Net Gains and Losses on Money Held in Trust
Net Gains and Losses on Foreign Exchanges
Net Gains and Losses on Sale of Premises and Equipment
Net Change in Loans
Net Change in Bonds and Notes
Net Change in Borrowings
Net Change in Reverse Repurchase Agreements

Refund of (Payments for) Income Taxes
Net Cash used in Operating Activities
Cash Flows from Investing Activities
Payments for Purchases of Securities
Proceeds from Redemption of Securities¥¥

Payments for Money Held in Trust
Proceeds from Money Held in Trust
Payments for Purchases of Premises and Equipment
Proceeds from Sale of Premises and Equipment
Net Cash provided by Investing Activities

1(32,804)(334,168)
353,023¥¥(0)(59,299)(60,006)
90,000$$17(305,469)(3,111,728)
3,287,299(5,926)
5,836(2,946)−(55,187)
54,346

(517)
60

(893)
679

(4,817)562¥

18,307¥

26,834$

170,475¥

21,175¥12,000$

197,178¥¥(7,799)13,375¥¥−12,000$$(72,627)
124,551

¥

1

¥

(1)

$

15

¥
¥

(1,119)19,251¥¥(20,466)
39,718$$(10,428)
179,269

¥

297

¥

−

$

2,772

¥

18,429¥19,251$

171,613

Cash Flows from Financing Activities
Capital Contribution from the Japanese Government
Payment to National Treasury
Net Cash provided by Financing Activities
Effect of Exchange Rate Changes on Cash and Cash Equivalents
Net Change in Cash and Cash Equivalents
Cash and Cash Equivalents at the Beginning of the Fiscal YearNet Increase in Cash and Cash Equivalents Resulted from the newly
Consolidation of Subsidiary
Cash and Cash Equivalents at the End of the Fiscal Year
Accompanying notes are an integral part of these financial statements.

55

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying consolidated financial statements have been prepared from the accounts maintained by Development Bank of Japan(“DBJ”) and its consolidated subsidiaries in accordance with accounting principles and practices generally accepted in Japan, which are
different in certain respects as to application and disclosure requirements of International Financial Reporting Standards.
The consolidated financial statements are not intended to present the financial position and the result of operations in accordance withaccounting principles and practices generally accepted in countries and jurisdictions other than Japan.
The amounts indicated in millions of yen are rounded down by omitting the figures less than one million yen. Accordingly, the sum of each amountappearing in the accompanying financial statements and the notes thereto may not be equal to the sum of the individual account balances. Amounts
in U.S. dollars are presented solely for the convenience of readers outside Japan. The rate of ¥107.39=$1.00, the effective exchange rate
prevailing as of March 31, 2005, has been used in conversion. The presentation of such amounts is not intended to imply that Japanese yen amounts
have been or could have been readily translated, realized or settled in U.S. dollars at that rate or any other rate.

2. Principles of Consolidation(a) Scope of Consolidation
The consolidated financial statements include the accounts of DBJ and its consolidated subsidiaries, DBJ Business Restructuring Investment Co.,Ltd and New Business Investment Co., Ltd. New Business Investment Co., Ltd. was newly consolidated in the fiscal year ended March 31, 2005.
DBJ does not have any other subsidiaries. Tomatoh, Inc. and Shin Mutsu-Ogawara, Inc., in which DBJ has over 50% ownership interest are notconsidered to be subsidiaries and consequentially not consolidated because DBJ made those investments as part of its financing operations, which
are DBJ’s primary business, and did not intend to obtain control over their operating and financing policies.
Though DBJ has an affiliate, Technology Alliance Investment, Ltd., equity method is not applied to it, since underlying interests among its net earnings
and retained earnings have no material impact on the consolidated financial statements of DBJ.
As of March 31, 2005, DBJ owns greater than 20% but less than a majority of voting stock of Nihonkai LNG Co., Ltd. and 30 othercompanies. These companies, however, are not considered to be affiliates because DBJ made these investments as part of its financing
operations, which are DBJ’s primary business, and did not intend to obtain ability to exert significant influence on their operating andfinancing policies.
On consolidation, significant intercompany accounts and transactions have been eliminated.
(b) Year-end Date of Consolidated Subsidiaries
Fiscal year-end of the consolidated subsidiaries is March 31.
(c) Valuation of Consolidated Subsidiaries’ Assets and Liabilities
Assets and liabilities of newly consolidated subsidiaries are valuated at fair value for consolidation.
(d) Amortization of Consolidation Differences
The differences between the fair value of net assets and the cost of the acquired subsidiary is charged to income in the year of acquisition.

3. Summary of Significant Accounting Policies(a) Cash and Cash Equivalents“Cash and Cash Equivalents” in the consolidated statements of cash flows consists of cash on hand and due from banks.
Time deposits with banks that is included in “Cash and Due from banks” as presented in the consolidated balance sheets are excluded from
“Cash and Cash Equivalents”.
The reconciliation between “Cash and Cash Equivalents” and “Cash and Due from banks” is as follows:
Millions of yen
2005

March 31
Cash and Due from BanksTime Deposits with Banks
Trust Money to Financial Agencies
Cash and Cash Equivalents¥

20,556¥

18,4292005

19,305$−(53)(2,000)(127)¥

Thousands of U.S. dollars
2004¥

19,251

191,420(18,624)(1,183)$

171,61356

(b) Securities
Held-to-maturity Debt Securities are stated at amortized cost on a straight-line basis, computed using the moving-average method.
Available-for-sale Securities whose current values can be estimated are stated at market value (cost is calculated principally using themoving-average method), and other non-marketable securities are stated at cost or amortized cost computed using the moving-average method.
Investments in the limited partnerships and other similar partnerships are accounted for at net amounts of underlying interests among their
net earnings based on their financial statements.
Unrealized gain and loss on Available-for-sale Securities are included in Equity, net of income taxes.
(c) Valuation Method for Derivative Financial Instruments
All derivative financial instruments are carried at market value, except for certain derivatives that are designated as hedging instruments as
discussed below.
(d) Hedge Accounting(¡) Hedge Accounting
DBJ applies the deferral method of hedge accounting. Foreign currency swaps, which are used to hedge the foreign currency fluctuations aretranslated not at market values but at contractual rates, as the foreign currency swap contracts meet the hedging criteria under the
Accounting Standards for Financial Instruments.
(™) Hedging Instruments and Hedged Items
・Hedging Instruments
Hedged Items
・Hedging Instruments
Hedged Items: Interest Rate Swaps: Bonds and Notes, Borrowings: Foreign Currency Swaps: Foreign currency denominated Loans and Bonds and Notes(£) Hedging Policy
DBJ utilizes hedging instruments to hedge interest rate and foreign currency fluctuations on its assets and liabilities.
(¢) Evaluation of Hedge Effectiveness
DBJ evaluates the effectiveness of the hedges by testing periodically whether the derivatives are effective in reducing the risks
associated with the hedged items.
(e) Premises and Equipment(¡) Depreciation
Premises and Equipment are depreciated using the declining-balance method, except for buildings (excluding installed facilities) that are
depreciated on a straight-line basis.
The estimated useful lives are principally as follows:
Buildings : 22 years to 50 years
Equipment : 3 years to 20 years(™) Accounting standard for impairment of fixed assets
On August 9, 2002, the Business Accounting Council in Japan issued “Accounting Standard for Impairment of Fixed Assets”. The standard
requires that fixed assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount ofan asset may not be recoverable. An impairment loss shall be recognized in the income statement by reducing the carrying amount of
impaired assets or a group of assets to the recoverable amount to be measured as the higher of net selling price and value in use.
The standard shall be effective for fiscal years beginning April 1, 2005. However, an earlier adoption is permitted for fiscal years beginning
April 1, 2004 and for fiscal years ending between March 31, 2004 and March 30, 2005.
DBJ has not yet applied this new standard nor has determined the effect of applying it on the non-consolidated financial statements.
(f) Amortization of deferred charges“Discounts on Bonds and Notes” are amortized over the life of Bonds and Notes, and “Bonds and Notes Issuance Costs” are charged to income
as incurred.
(g) Foreign currency translation and revaluation method
Assets and liabilities denominated in foreign currencies are translated into Japanese yen at the market exchange rates prevailing at the fiscal
year end.
(h) Allowance for Loan Losses
DBJ provides for “Allowance for Loan Losses” as detailed below pursuant to the internal rules for self-assessment of credit quality and loan losses.

57

The allowance for claims on debtors who are legally bankrupt, in special liquidation or effectively bankrupt is provided based on the amountof claims, after the write-off described below, net of amounts expected to be collected through disposal of collateral or execution ofguarantees.
The allowance for claims on debtors who are not legally bankrupt at the moment, but likely to become bankrupt for which future cash flows
cannot reasonably be estimated is provided for the amount considered to be necessary based on an overall solvency assessment performed on
the claims, net of amounts expected to be collected through disposal of collateral or execution of guarantees.
With respect to the claims on debtors who are likely to become bankrupt or to be closely monitored, and for which future cash flows canreasonably be estimated, the allowance is provided for the difference between the present value of expected future cash flows discounted at
the contracted interest rate and the carrying value of the claims.
The allowance for claims on debtors other than those described above is provided based on the historical default rate, which is calculated basedon the actual defaults over a certain historical period (the average financing period for DBJ).
All claims are assessed initially by investment and lending departments and then by Credit Risk Management Department, which is
independent from the investment and lending departments based on internal rules for self-assessment of credit quality. The allowance is provided
based on the results of the self-assessment.
With respect to the claims on debtors who are legally or substantially bankrupt with collateral or guarantees, the amount of claims
exceeding the estimated market values of collateral or guarantees, which are deemed uncollectible, have been written-off, and totaled ¥104,845
million ($976,305 thousand) and ¥55,184 million for the year ended March 31, 2005 and 2004, respectively.
(i) Allowance for Investment Losses“Allowance for Investment Losses” is provided based on the estimated losses on non-marketable equities.
(j) Allowance for Bonus Payments“Allowance for Bonus Payments” is calculated and provided for based on the estimated amounts of future payment attributable to the services
that have been rendered by employees and executive directors to the date of the balance sheets.
(k) Allowance for Employee Retirement Benefits“Allowance for Employee Retirement Benefits” represents future payments for pension and retirement benefits to employees andexecutive directors, and is accrued based on the projected benefit obligations and estimated pension plan assets at fiscal year end. The actuarial
gain or loss is recognized during the year it arises.
(l) Equipment Used under Finance Lease Agreements
Equipment used under finance lease agreements is accounted for as equipment leased under operating leases, except for those in which theownership of leased equipment transfers to the lessee.
(m) Consumption tax
Income and expense subject to consumption tax exclude related consumption taxes paid or received.
(n) Income Taxes
DBJ is exempt from taxes based on income, however, DBJ is subject to parity taxes among local taxes. On the other hand, theconsolidated subsidiaries are subject to income and local taxes.
Deferred income taxes are recorded for income taxes based on differences between the tax bases of assets and liabilities and those as reported
in the consolidated financial statements, using enacted tax rates which will be in effect when the differences are expected to reserve. The assets
and liabilities method is used to determine deferred income taxes.
(o) Appropriation of Retained Earnings
Consolidated Statements of Equity are presented based on the approved appropriation of Retained Earnings for the fiscal year ended March
31, 2005 and 2004, respectively.
(p) Change in Presentation on Consolidated Balance Sheets
In the previous years, equity interests in limited liability partnerships (LLPs), and those in voluntary partnership under the Civil Code and silent
partnership under the Commercial Code characteristics of which are similar to those of LLPs had been included in “Other assets”.
However, from this fiscal year, these are included in “Securities” as they are defined as securities under the Securities and Exchange Law by
the “Partial Revision of Securities and Exchange Law” (Law No.97 dated June 9, 2004).
As a result of this change, “Other assets” decreased by ¥50,459 million ($469,875 thousand) and “Securities” increased by the same amountcompared to previous year.

58

4. Securities
Securities as of March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
March 31
Japanese Government Bonds

2005¥

Corporate Bonds

152,925
63,215Equities
Other securities

128,239
50,460
¥

2005

2004

394,840¥

171,488
79,320$176,012150¥

426,971

1,424,015
588,653
1,194,146
469,881$

3,676,695

5. Non-performing Loans
The amounts of Non-Performing Loans included in “Loans” on the consolidated balance sheets as of March 31, 2005 and 2004 are as follows:
Millions of yen
March 31
Loans to Bankrupt Debtors
Delinquent Loans

2005¥

Loans Past Due Three Months or More
Restructured Loans¥

25,762Thousands of U.S. dollars
2004¥

23,705

233,765466

271,472270

138,629
398,624

193,210488,658¥$

2005
239,901
2,176,794
4,341
1,290,896$

3,711,932

Notes: 1. The amounts of Loans indicated above are stated at gross amounts, before reduction of allowance for loan losses.
2. “Loans to Bankrupt Debtors” represent non-accrual loans to debtors who are legally bankrupt as defined in Article 96-1-3 and 4 of the Japanese Tax Law Enforcement Regulation.
3. “Delinquent Loans” represent non-accrual loans other than (¡) Loans to Bankrupt Debtors and (™) Loans whose interest payments are deferred in order to assist or facilitate the restructuring
efforts of borrowers in financial difficulties.
4. “Loans Past Due Three Months or More” are loans whose principal or interest payment is three months or more past due and do not fall under the category of “Loans to Bankrupt Debtors”
or “Delinquent Loans”.
5. “Restructured loans” are loans whose repayment terms have been modified to the advantage of debtors through means such as reduction or exemption of interest rates,
postponement of principal and interest payments, and forgiveness of loans to support or restructure the debtors’ businesses, and do not fall under the category of “Loans toBankrupt Debtors”, “Delinquent Loans”, or “Loans Past Due Three Months or More”.

DBJ provides commitment lines under which it lends, upon the borrowers’ request, necessary funds up to the pre-determined amount that is within
the borrowers’ financing needs for the projects and up to the agreed maximum amount to lend, provided that their requests meet terms and conditions
for disbursement prescribed in the loan agreements. The total balance of unused commitment lines as of March 31, 2005 and 2004 are¥70,556 million ($657,014 thousand), including ¥41,328 million ($384,841 thousand) being financed within one year and ¥90,985 million, including¥49,517 million being financed within one year, respectively.

59

6. Other Assets
Other Assets as of March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
March 31
Prepaid Expenses
Accrued Income

2005
95

¥

Derivatives
Deferred Hedge Losses
Others
¥

2004
¥

54

59,168
5,565

67,967923

171,801
8,767

183,92251,882

245,399¥

304,750

$

2005
889
550,972
51,826
1,599,795$

81,642
2,285,124Notes: Deferred Hedge Losses are net realized or unrealized losses from hedging instruments. The gross amounts of deferred hedge gains and losses before netting are ¥8,870 million ($82,598 thousand)and ¥180,672 million ($1,682,393 thousand) as of March 31, 2005, respectively. The corresponding amounts as of March 31, 2004 are ¥3,704 million and ¥187,627million, respectively.

7. Premises and Equipment
Premises and Equipment as of March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
March 31
Tangible Fixed Assets
Land

2005
¥

Buildings
Equipment

20,39534,467¥¥Less- Accumulated Depreciation

56,86020,424
34,168$¥(19,638)

189,923
320,955
18,600
−

2,018
141

1,997
−

Construction in Progress

2005

2004

56,753(19,057)$

529,478(182,872)

Net Book Value¥

37,221¥

37,695$

346,606

Intangible Assets
Guarantee Deposits

¥

415
17

¥

384
18

$

3,865
164

¥

432

¥

402

$

4,029

¥

(16)
416

¥

(15)
386

$

(150)
3,879

OthersLess - Accumulated Amortization
Net Book Value

8. Allowance for Loan Losses
Allowance for Loan Losses as of March 31, 2005 and 2004 are as follows:
Millions of yen
March 31
General Allowance for Loan Losses
Specific Allowance for Loan Losses

2004

Thousands of U.S. dollars
2005¥

249,415$

1,390,119¥

146,465
395,881$

1,219,848
2,609,967

2005¥

149,284¥

130,999
280,28460

9. Bonds and Notes
Bonds and Notes as of March 31, 2005 and 2004 are as follows:
March 31
Description of Bonds andIssue date

Notes
Japanese Governmentguaranteed Bonds

February
1996-

185-186*1

November
1996

Currency andAmounts
2005(In millions)Interest
rate (%)

JPY

2.90〜

20,0003.10

February
2006-

Thousands of U.S. dollars

Millions of yen¥

2005
20,000¥2004
20,000$2005
186,237[93,119][10,000]

November
2006

Japanese Government-

Augustguaranteed Bonds
1-9

2000February

Japanese Government-

2005
January

JPY

1995-

75,000

guaranteed Foreign Bonds
63-65-67*2

Maturitydate

JPY
380,000

0.80〜

August1.90

2010February

1.81〜
2.87

2015
December
September

1998

2028

January
1995-

Bondss 5-9*1

March
1998

Japanese Government-

Novemberguaranteed Foreign Bonds
1-8

1999June

Japanese Government-

2004
May

EUR750JPY

underwritten Bonds

1994-

151,180

163-211*1

December
1998

FILP Agency Bonds
1-18*3September
2001-

330,000

3,538,505

75,000114,225

698,3892006-

September

Japanese Governmentguaranteed Foreign

380,000[39,225]

25,510[25,510]588,621513,621

5,481,154

2023
May

151,180

237,250

1,407,766

2005-[41,770][86,070][388,956]

780,000

540,000

7,263,246

1,780,606$ 18,575,297

−

−

JPY
430,000

1.05〜
6.87

June

USD750
1.10〜
3.60

−

−

−

2010June

December
2008
JPY
780,000

0.40〜
1.83

September
2006-

February

September

2005

2018
¥

1,994,801¥

Notes: 1. These bonds are government-guaranteed bonds and government-underwritten bonds issued by the Hokkaido-Tohoku Development Finance Public Corporation prior to the merger with
the Japan Development Bank that formed DBJ.
2. These bonds are government-guaranteed bonds issued by the Japan Development Bank prior to the merger with the Hokkaido-Tohoku Development Finance Public Corporation thatformed DBJ.
3. Fiscal Investment and Loan Program (FILP) Agency Bonds issued in Japanese domestic markets are not government-guaranteed.
4. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.

Scheduled redemptions of Bonds and Notes for each of the next five years as of March 31, 2005 are as follows:
Fiscal year ended in March 31, 2006

61¥

51,770 million$

482,075 thousand

2007

196,600

1,830,710

2008

183,250

1,706,397

2009

169,560

1,578,918

2010

90,000

838,06710. Borrowings
Borrowings as of March 31, 2005 and 2004 are as follows:

March 31

Averageinterest
rate (%)

Thousands of U.S. dollars

Millions of yen
2005

2004

2005

May

Borrowings
Long-term Borrowings
from JapaneseDue date of
repayment

2.27

Government

2005October
2024¥

10,214,800¥

11,403,450$

95,118,726¥

10,214,800¥

11,403,450$

95,118,726

Borrowings with maturities for each of the next five years as of March 31, 2005 are as follows:
Fiscal year ended in March 31, 2006

¥ 1,435,258 million$ 13,364,917 thousand

2007

1,411,833

13,146,783

2008

1,347,121

12,544,201

2009

1,192,443

11,103,860

2010

989,653

9,215,507

11. Other Liabilities
Other Liabilities as of March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
March 31
Accrued Expenses¥

2005
37,332¥

2004
49,960$2005
347,639

Unearned Income
Deposits from Employees

18,692
124

31,714153

174,063
1,161

Derivatives

181,951
11,370187,127
8,867

1,694,308
105,885

Others¥249,472¥

277,824$

2,323,056

12. Acceptances and Guarantees
Acceptances and Guarantees as of March 31, 2005 and 2004 are as follows:

March 31
Guarantees¥

Millions of yen
2005
2004
98,75776,812
98,757¥76,812Thousands of U.S. dollars
2005
919,611$
919,61162

13. Assets Pledged as Collateral
Securities collateralized in Real Time Gross Settlement for bank deposit at Bank of Japan are ¥122,928 million ($1,144,688 thousand) as of March
31, 2005, and ¥121,693 million as of March 31, 2004.

14. Retained Earnings
A portion of net earnings of the parent company calculated pursuant to Article 4 of the Development Bank of Japan Law (“DBJ Law”) wasappropriated to Statutory Reserve and for payment to the National Treasury as stipulated by Article 41 of the DBJ Law.

15. Fees and Commissions (Income)Fees and Commissions (Income) for the fiscal years ended March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
For the Fiscal Years ended March 31
Commissions

¥

2005
2,211

¥

2,211

2005

¥

2004
2,757

$

20,594

¥

2,757

$

20,594

16. Other Operating Income
Other Operating Income for the fiscal years ended March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
For the Fiscal Years ended March 31
Foreign Exchange Gains

2005
¥

4
12

¥

¥

16

¥

Others

2005

2004
−
−

$

44
112

−

$

156

17. Other Ordinary Income
Other Ordinary Income for the fiscal years ended March 31, 2005 and 2004 are as follows:
Millions of yen
2005

For the Fiscal Years ended March 31
Reversal of Allowance for Loan Losses
Gains on Sales of Equities and Other Securities

¥

¥

¥

2,920
57,30437,787

Thousands of U.S. dollars
2005
$

31
149

3,276
110

Gains on Money Held in Trust
Others63

50,998

2004

¥

801
38,768474,889
30,506
1,027$

27,192533,614

18. Fees and Commissions (Expenses)
Fees and Commissions (Expenses) for the fiscal years ended March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
For the Fiscal Years ended March 31
Wire Transfer Service Charges

2005

2005

2004

¥

5
51

¥

5
15

$

49
484

¥

57

¥

21

$

533

Commissions

19. Other Operating Expenses
Other Operating Expenses for the fiscal years ended March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
For the Fiscal Years ended March 31
Foreign Exchange Losses

2005

Bonds and Notes Issuance Costs
Losses on derivative instruments
Others
¥

2005

2004
−

¥

¥

1

881
1,536

1,201
871

319

392
2,466

2,737

¥

−

$

8,211
14,304
2,978$

25,493

20. Other Ordinary Expenses
Other Ordinary Expenses for the fiscal years ended March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
For the Fiscal Years ended March 31
Provision for Investment Losses

2005¥

Write-off of Loans
Losses on Sales of Equities andOther Securities
Write-off of Equities
Losses on Money Held in Trust
Others
¥

2005

2004

7,099
14,268

¥

4,075
3,836

$

66,112
132,869

7

16

74

92

589

863

957
3,609

1
2,963

8,913
33,614

26,036¥

11,483$

242,445

Notes: Losses on sale of loans included in “Others” are ¥607 million ($5,654 thousand) and ¥2,070 million for the fiscal years ended March 31, 2005 and 2004, respectively.

6421. Employee Retirement Benefits
DBJ has defined benefit pension plans, which consist of welfare pension fund plan and lump-sum severance indemnity plan.
(a) The Funded Status of the Pension Plans
Millions of yen
2005
2004
(44,121)¥(43,396)

March 31
Projected Benefit Obligation
Fair Value of Plan Assets

(A)
(B)

Unfunded Pension Obligation
Unrecognized Net Obligation at Transition(C)=(A)+(B)(D)

Unrecognized Net Actuarial Gains/Losses(E)

Unrecognized Prior Service Cost
Net Amount Recognized on the Balance(F)(G)=(C)+(D)+(E)+(F)Prepaid Pension Cost
Allowance for Employee Retirement Benefits(H)(G)-(H)¥¥

Thousands of U.S. dollars
2005(410,854)$

11,903

11,224

110,840(32,218)−(32,172)−(300,014)
−

−
−

−
−

−
−

(32,218)(32,172)(300,014)−(32,218)−(32,172)−(300,014)¥$

Notes: The above Projected Benefit Obligations include a portion in which the pension fund manages on behalf of the Japanese Government welfare program.

(b) Component of Pension Cost
Thousands of U.S. dollars

Millions of yen
March 31
Service Cost

2005
1,506

¥

¥

2004
1,525

2005
14,027$

Interest Cost
Expected Return on Plan Assets

865
(112)

838
(91)

8,057
(1,045)

Amortization of Prior Service Cost

−
121

−
(807)

−
1,130

−

−

−

−
2,380

−
1,465

Amortization of Net Actuarial Gains/Losses
Amortization of Net Obligation at Transition
Other Costs
Net Pension Cost¥¥−
22,169$(c) Principal Assumptions Used
March 31
Discount Rate
Expected Rate of Return on Plan Assets
Method of Attributing the Projected Benefits to Periods of Services
Amortization Period of Actuarial Gains/Losses

65

2005

2004
2.0%
1.0%

2.0%
1.0%

Straight-line basis

Straight-line basis

Gains/losses are charged toincome immediately

Gains/losses are charged toincome immediately

22. Lease Transactions(a) Finance Lease Transactions(Excluding leases where the ownership of the property is deemed to have transferred to the lessee)
Millions of yen
2005
March 31
Acquisition Cost Equivalents

Equipment¥
936

Less- Accumulated
Depreciation Equivalents
Book Value Equivalents

(428)
¥

2004

Others
¥
230

¥

(95)

508

¥

Total
1,167

Equipment
761
¥

(524)

134

¥

642

Others
204
¥

(367)
¥

¥

(51)

393

¥

153

Total
965
(418)

¥

547

Thousands of U.S. dollars
2005
March 31
Acquisition Cost Equivalents$

Less- Accumulated
Depreciation Equivalents
Book Value Equivalents

Equipment
8,725$

Others
2,144

$

1,250

(3,988)
$

4,737

Total
$ 10,869(894)(4,882)$

5,987

Future lease payments subsequent to the end of the fiscal years for finance leases (including the interest portion thereon) are summarized below:
Millions of yen
March 31
Due in One Year or Less
Due after One Year

¥

2005
244
415

¥

2004
216
335

¥

659

¥

552

Thousands of U.S. dollars
2005
2,274
$
3,868
$

6,142

Lease expense, depreciation equivalents and interest expense equivalents relating to finance leases for the fiscal year ended March 31, 2005 amountto ¥315 million ($2,936 thousand), ¥273 million ($2,542 thousand) and ¥53 million ($500 thousand), respectively. The corresponding
amounts for the fiscal year ended March 31, 2004 are ¥239 million, ¥231 million and ¥7 million, respectively.
Notes: 1. Depreciation equivalents are calculated using the straight-line method, assuming that useful life is equal to the lease term and the residual value at the end of the lease term is zero.
2. Interest expense equivalents are defined as the difference between total lease payments and acquisition equivalents, which are allocated over the lease term using the interest method.

(b) Operating Lease Transactions
DBJ has no future lease payments subsequent to the end of fiscal year for operating lease transactions as of March 31, 2005 and 2004.

66

23. Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities as of March 31, 2005 and 2004 consisted of the followings:
Millions of yen
2005

March 31
Deferred Tax Assets:
Enterprise Tax Payable¥

Allowance for Investment Losses
OthersSub Total
Less- Valuation Allowance
Total Deferred Tax Assets¥

Thousands of U.S. dollars
2004

60
105

¥

2005
0
−

$

566
982

61
227

−
0

574
2,122

(227)

(0)

(2,122)

0

¥

−

$

0

Deferred Tax Liabilities:
Net Unrealized Gain on
Available-for-sale Securities
Total Deferred Tax Liabilities
Net Deferred Tax Assets (Liabilities)

¥

(297)

−

(2,769)(297)−(2,769)

(297)

¥

−

$

(2,769)24. Segment Information(a) Segment Information by Type of Business
DBJ and its consolidated subsidiaries are engaged in business such as private equity investment and fund management and other activities aswell as banking business. Such segment information, however, is not presented, as the percentages of those activities are insignificant.
(b) Segment Information by Geographic Area
Segment information classified by geographic area is not presented, as there are no consolidated subsidiaries and offices located incountries or areas other than Japan.
(c) Ordinary Income from Overseas Entities
Ordinary income from overseas entities is omitted because the amount is below 10 percent of the consolidated ordinary income.

6725. Derivative Transactions
1. Details Related to Transactions(a) Details of Transactions
DBJ utilizes derivative financial instruments, which comprise interest rate swaps, currency swaps and credit default swaps.
(b) Policy for Derivative Transactions
DBJ utilizes interest rate swaps and currency swaps to reduce its exposure to market risks from fluctuations in interest rates and foreign currency
exchange rates, and does not hold or issue derivative financial instruments for trading purposes. Also DBJ utilizes credit default swaps as partof its “acceptances and guarantees on customers’ debts” business within the limit of a certain definite amount of risk.
(c) Purposes of Transaction
DBJ utilizes interest rate swaps to reduce its exposure to the risk of interest rate fluctuations associated with funding transactions, and foreign
currency swaps to reduce its exposure to the risks of foreign currency exchange rate fluctuations associated with its loans and bonds denominatedin foreign currencies. DBJ also utilizes credit default swaps as part of its “acceptances and guarantees on customers’ debts” business.
DBJ adopted the Japanese accounting standards for hedge accounting to interest rate swaps and foreign currency swaps as described below:(¡) Hedge Accounting
DBJ applies the deferral method of hedge accounting. Foreign currency swaps, which are used to hedge the foreign currency
fluctuations as the foreign currency swap contracts meet the hedging criteria under the Accounting Standard for Financial
Instruments, are translated not at market but at contractual rates.
(™) Hedging Instruments and Hedged Items
・Hedging Instruments: Interest Rate Swaps
Hedged Items
・Hedging Instruments
Hedged Items: Bonds and Notes, Borrowings: Foreign Currency Swaps: Foreign currency denominated Loans and Bonds and Notes(£) Hedging Policy
DBJ utilizes hedging instruments to hedge interest rate and foreign currency fluctuations of the hedged assets and liabilities.
(¢) Evaluation of Hedge Effectiveness
DBJ evaluates the effectiveness of the hedges by testing periodically whether the derivatives are effective in reducing the risks
associated with the hedged items.
(d) Risks Involved in Derivatives Transactions
Derivatives involve the following risks:(¡) Market Risk
Potential loss from changes in the market value of financial products due to fluctuations in interest rates or exchange rates.
(™) Credit Risk
Potential loss from the failure of a counterparty to perform its obligations in accordance with terms and conditions of contract
governing the transactions due to the counterparty’s bankruptcy or deteriorating business conditions.
Concerning derivative transactions for hedging purpose, the market risk on derivatives is offset against the hedged transactions. As for credit
risk, DBJ limits the counterparty to financial institutions highly rated by the credit rating agencies, and constantly monitors the cost ofrestructuring its transactions and creditworthiness of each counterparty. In addition, DBJ transacts with multiple counterparties to reduce credit
risk. Also, concerning credit derivative transactions, DBJ holds credit risk of target debt itself in the transaction.
(e) Risk Management Policies for Derivatives
The treasury department enters into and monitors derivative transactions in accordance with the internal management policy, which
defines the authorization procedures, including pre-approval by authorized personnel, and limits on derivative transactions. Also, total contract
amount, total amount of risk, market value, and total amount of counterparties’ credit risk in the derivative transactions are reported to thedirectors in charge periodically.
(f) Supplementary explanation on Market Value of Derivatives
It should be noted that ‘Contract Value’ represents nominal contract value or notional principal amount used in determining the value of receipts
or payments of interest, but this does not necessarily reflect the risks of derivative transaction themselves.

682. Information on Market Value of Derivatives
The market values of derivatives at March 31, 2005 and 2004 are as follows:(a) Interest Rate-related Transactions
Millions of yen
2005
Contract Value
March 31Over-the-Counter
Swaps
Receive Fixed/ Pay Float

Total

Unrealized Gain
(Loss)

Market Value

Over one year¥

1,163,000¥

1,163,000¥

10,837¥

10,837¥

1,163,000
2,326,000¥

1,163,000
2,326,000¥(17,294)(6,456)¥(17,294)(6,456)

Receive Float/ Pay Fixed

Millions of yen
2004
Contract Value
March 31

Total

Unrealized Gain
(Loss)

Market Value

Over one year

Over-the-Counter
Swaps
Receive Fixed/ Pay Float
Receive Float/ Pay Fixed¥

571,000¥

571,000

571,000¥

1,142,000¥

571,000¥

1,142,000(5,409)¥(5,409)¥(6,540)(1,130)¥(6,540)(1,130)Thousands of U.S. dollars
2005
Contract Value
March 31

Total

Unrealized Gain
(Loss)

Market Value

Over one year

Over-the-Counter
Swaps
Receive Fixed/ Pay Float$

10,829,686
10,829,686$

10,829,686
10,829,686$

100,921(161,042)$

100,921(161,042)$

21,659,372$

21,659,372$(60,121)$(60,121)

Receive Float/ Pay Fixed

Notes: 1.The above transactions are marked to market and changes in unrealized gain (loss) are included in the Consolidated Statements of Operations. Derivative transactions qualifying for hedge
accounting are excluded from the tables above.
2.Market values for the over-the-counter transactions are based primarily on discounted present values.

(b) Currency-related Transactions
There is no currency-related derivative transactions whose unrealized gains and losses are recognized currently in income.
(c) Equity-related Transactions
Not applicable(d) Bond-related Transactions
Not applicable(e) Commodity-related Transactions
Not applicable69

(f) Credit Derivatives Transactions
Millions of yen
2005
Contract Value
March 31

Total

Unrealized Gain

Market Value

Over one year

(Loss)

Over-the-Counter
Credit Default Swap
Sold
Bought

¥1,853,901

−

¥

274

¥

−

1,837,501

¥

(162)
¥

112

274
(162)

¥

112

Millions of yen
2004
March 31

Total

Contract Value
Over one year

Unrealized Gain
(Loss)

Market Value

Over-the-Counter
Credit Default Swap
Sold¥

Bought2,129,857
2,113,457¥

2,129,857
2,113,457

¥

456
51

¥

456
51

¥

507

¥

507

Thousands of U.S. dollars
2005
Contract Value
March 31Over-the-Counter
Credit Default Swap
Sold
BoughtTotal$

17,263,263
17,110,548$−

Unrealized Gain

Market Value

Over one year

$

2,558

$

(1,510)
1,048−(Loss)

$

2,558

$

(1,510)1,048

Notes: 1.The above transactions are marked to market and changes in unrealized gain (loss) are included in the Consolidated Statements of Operations.
2.Market values are based on the counterparties’ tendered price.
3.‘Sold’ means the underwriting of credit risk and ‘Bought’ means the transferring of credit risk.

7026. Market Value of Securities and Money Held in Trust
Market value of Securities and Money held in Trust as of March 31, 2005 and 2004 are summarized below. The information about investments in
subsidiaries and affiliates with market value is reported in the notes to non-consolidated financial statements.
1. Securities(a) Trading Securities
Not applicable(b) Held-to-maturity Debt Securities with market values
Millions of yen
2005
March 31
Japanese Government Bonds

Book Value¥−

Japanese Local Government Bonds
Short-term Corporate Bonds
Corporate Bonds
Others¥

Unrealized Gain (Loss)

Market Value
¥

¥

−

Net
−

¥

Gain
−

−
−

−
−

−
−

−
−

48,000−48,609
−

609
−

609
−

48,000¥¥48,609

¥

609

609

(Loss)
¥

−
−
−
−
−

¥

−

Millions of yen
2004
March 31
Japanese Government Bonds

Book Value¥−

Japanese Local Government Bonds
Short-term Corporate Bonds
Corporate Bonds
Others¥

Unrealized Gain (Loss)

Market Value
¥

¥

−

Net
−

¥

Gain
−

¥

(Loss)
−

−
−

−
−

−
−

−
−

−
−

60,100−61,018
−

918
−

938
−

(19)
−

60,100¥¥61,018

¥

918

938

¥

(19)

Thousands of U.S. dollars
2005
March 31
Japanese Government Bonds

Book Value$

Japanese Local Government Bonds
Short-term Corporate Bonds
Corporate Bonds
Others$
Notes: Market value is based on the closing price at the fiscal year end.

71−

Unrealized Gain (Loss)

Market Value
$

−

$

Net
−

$

Gain
−

−
−

−
−

−
−

−
−

446,968−

452,643
−

5,675
−

5,675
−

446,968$

452,643

$

5,675

$

5,675

(Loss)
$

−
−
−
−
−

$

−

(c) Available-for-sale Securities with market values
Millions of yen
2005
March 31
Equities
Bonds

Acquisition Cost¥

Japanese Government Bonds
Japanese Local Government Bonds
Short-term Corporate Bonds
Corporate Bonds
Others¥

175

Unrealized Gain (Loss)

Book Value
¥

579

¥

Net
403

¥

Gain
403

¥

(Loss)-

161,991
151,991

162,927
152,925

935
933

946
944

−

−

−

−

(11)
−

−
10,000−10,002

−
2

−
2

−
−

−
162,167¥−
163,506

¥

−
1,339

¥

−
1,350

(11)

−
¥

(11)

Millions of yen
2004
March 31
Equities
Bonds

Acquisition Cost¥

Japanese Government Bonds
Japanese Local Government Bonds−
181,420¥

Corporate Bonds
Others¥¥−181,498

Gain

Net
¥

−
78

171,488−

171,420−

Short-term Corporate Bonds

Unrealized Gain (Loss)

Book Value

67
−

−
99

(Loss)
¥

−
(20)

88
−

(20)
−

−

−

−

−

−

10,000−10,010
−

10
−

10
−

−
−

181,420¥¥

181,498

¥

78

99

¥

(20)

Thousands of U.S. dollars
2005
March 31
Equities
Bonds
Japanese Government Bonds
Japanese Local Government Bonds
Short-term Corporate Bonds
Corporate Bonds
OthersAcquisition Cost
$

1,636

Unrealized Gain (Loss)

Book Value
$

5,398

$

Net
3,762

$

Gain
3,762

$

(Loss)−

1,508,442
1,415,323

1,517,153
1,424,015

8,711
8,692

8,816
8,797

−

−

−

−

(105)
−

−
93,119−93,138

−
19

−
19

−
−

−
$ 1,510,078−$ 1,522,551$−
12,473$−
12,578

(105)

−
$

(105)

Notes: Book value above represent the market values determined based on the closing prices at the fiscal year end.

72

(d) Held-to-maturity Debt Securities soldNot applicable(e) Available-for-sale Securities soldMillions of yen
2005
For the Fiscal Year ended March31
Available-for-sale Securities

Total amount ofGain on Sales

Proceeds from Sales
¥
¥

4,071
4,071

¥
¥

3,798
3,798

Total amount ofLoss of Sales
¥
¥

−
−

Millions of yen
2004
For the Fiscal Year ended March 31
Available-for-sale Securities

Total amount ofLoss of Sales

Total amount ofGain on Sales

Proceeds from Sales
¥

235

¥

−

¥

16

¥

235

¥

−

¥

16

Thousands of U.S. dollars
2005
For the Fiscal Year ended March 31
Available-for-sale Securities

Total amount ofGain on Sales

Proceeds from Sales

Total amount ofLoss of Sales$

37,912$35,369$−$37,912$35,369$−(f) Held-to-maturity Debt Securities and Available-for-sale Securities whose market values are not readily determinable
Millions of yen
2005

March 31
Held-to-maturity Debt Securities
Unlisted Corporate Bonds

¥

5,163

2004
¥

9,070

Thousands of U.S. dollars
2005$

48,080Available-for-sale Securities
Unlisted Equities
Unlisted Corporate Bonds
Others¥127,659

176,012

1,188,748

50
50,460

140
150

465
469,881

183,333¥

185,373$

1,707,174(g) Change in Classification of Securities
For the fiscal year ended March 31, 2004, DBJ has changed the classification of the securities amounted to ¥140 million ($1,325 thousand) from
“Held-to-maturity Debt Securities” to “Available-for-sale Securities” due to the deteriorating credit quality of the issuers. There are no impacts on
the consolidated financial statements due to this change of classification.

73

(h) Redemption Schedule of Available-for-sale Securities with maturities and Held-to-maturity-Debt Securities
Millions of yen
2005
Maturity
March 31
Bonds
Japanese Government Bonds¥

Within 1 year
80,760¥

Corporate Bonds
Others¥¥5 to 10 years
54,221

51,094−50,239−Japanese Local Government Bonds
Short-term Corporate Bonds

1 to 5 years
81,156

51,591
−

−
−
−
−

−

−

−

30,521−30,062−

2,630−

80,760¥81,156¥More than 10 years¥−

54,221−¥−Millions of yen
2004
Maturity
March 31
Bonds
Japanese Government Bonds
Japanese Local Government Bonds

Within 1 year¥
179,968
161,317

Short-term Corporate Bonds
Corporate Bonds
Others¥¥1 to 5 years
70,34010,171

5 to 10 years
¥

500

−

−

−
−

−
18,651−60,169−500

150
180,118−
70,340

−

¥

¥

500

More than 10 years
¥
−
−
−
−
−
¥

−
−

Thousands of U.S. dollars
2005
Maturity
March 31
Bonds
Japanese Government Bonds$

Japanese Local Government Bonds
Short-term Corporate Bonds
Corporate Bonds
Others$Within 1 year
752,030$

1 to 5 years
755,720$

5 to 10 years
504,898

467,823475,784

480,408

−
−

−
−

−
−

284,207−279,936−

24,490−752,030$

755,720$504,898

More than 10 years
$
−
−
−
−
−
−
$

−

74

2. Money Held in Trust
There is no Money Held in Trust held for the purpose of investment or held to maturity. Market value of Other Money Held in Trust (Money Heldin Trust other than that stated above) is summarized below:
Millions of yen
2005
March 31
Other Money Held in Trust

Acquisition Cost
¥

5,061

Unrealized Gain (Loss)

Book Value
¥

Gain

Net

4,136

¥

¥

−

−

(Loss)¥−

Millions of yen
2004
March 31
Other Money Held in Trust

Acquisition Cost
¥

4,910

Unrealized Gain (Loss)

Book Value
¥

Gain

Net

4,893

¥

¥

−

−

(Loss)¥−

Thousands of U.S. dollars
2005
March 31
Other Money Held in Trust

Acquisition Cost$

47,131

Unrealized Gain (Loss)

Book Value
$

Gain

Net

38,521$−$−(Loss)$−

3. Net Unrealized Gain on Available-for-sale Securities
The breakdown of net unrealized gain on Available-for-sale Securities is as follows:
Thousands of U.S. dollars

Millions of yen
March 31
Net Unrealized Gain
Available-for-sale Securities
Other Money Held in Trust

2005
¥

7,355
−

¥

7,057

2005

2004
¥

18,956−¥

18,956$

68,490−$65,721

Add: Deferred Tax Assets(Less: Deferred Tax Liabilities)
Amount corresponding to Minority Interests
Net Unrealized Gain on Available-for-sale
Securities, Net of Taxes

−

(297)

−

(142)
¥

6,915

(2,769)¥18,956(1,329)$64,392

Notes: 1. As of March 31, 2004, net unrealized gain on ‘Interests in Limited Partnerships’ reflected in “Other Assets”, which amounts to ¥18,878 million, is included in the “Net Unrealized Gainon Available-for-sale Securities, Net of Taxes” noted above.
2. Net unrealized gain included foreign currency translation adjustments on non-marketable securities denominated in foreign currency.

75

76

NON-CONSOLIDATED BALANCE SHEETS
Thousands of U.S. dollars

Millions of yen
March 31

2005

2005

2004

AssetsCash and Due from banks
Reverse Repurchase Agreements¥

Money Held in Trust
Securities (Notes 3 and 10)
Loans (Note 4)
Other Assets (Note 5)
Premises and Equipment (Note 6)
Deferred Charges on Bonds and Notes
Customers' Liabilities for Acceptances and Guarantees
Allowance for Loan Losses (Note 7)
Allowance for Investment Losses
Total Assets¥

18,18919,298¥$169,380

107,999

77,166

1,005,672

4,136
391,172

4,893
426,981

38,521
3,642,545

13,860,747
245,396

14,785,724
304,750

129,069,259
2,285,094

37,601
2,594

38,081
2,249

350,141
24,15998,75776,812919,611(280,284)(20,508)(395,881)(13,903)(2,609,967)(190,968)

14,465,803¥

15,326,174

134,703,447

Thousands of U.S. dollars

Millions of yen
2005

$

2004

2005

Liabilities and Equity
Liabilities
Bonds and Notes
Borrowings¥

1,994,801¥

1,780,606$

18,575,297

10,214,800

11,403,450

95,118,726

Other Liabilities (Note 8)
Allowance for Bonus Payments

248,497
1,651

277,826
1,659

2,313,969
15,378

Allowance for Employee Retirement Benefits

32,21898,75732,172
76,812300,014919,611

Acceptances and Guarantees (Note 9)
Total Liabilities¥

12,590,725¥

13,572,527$

117,242,995¥

1,215,461
652,953¥

1,194,286
540,403$

11,318,195
6,080,212

EquityCapitalRetained Earnings (Note 11)
Statutory Reserve
Accumulated Deficit
Net Unrealized Gain on Available-for-sale Securities
Total Equity
Total Liabilities and Equity
Accompanying notes are an integral part of these financial statements.

77

¥
¥

1,027,021

1,000,908

9,563,477(374,067)
6,662(460,504)
18,956(3,483,265)
62,045

1,875,077
14,465,803¥¥

1,753,646
15,326,174$$

17,460,452
134,703,447

NON-CONSOLIDATED STATEMENTS OF OPERATIONSMillions of yen
2005

For the Fiscal Years ended March 31

Thousands of U.S. dollars
2004

2005

Revenues
Interest Income
Interest on Loans¥

Interest and Dividends on Securities
Interest on Reverse Repurchase Agreements
Interest on Due from banks
Other Interest Income
Fees and Commissions (Note 12)
Other Operating Income (Note 13)
Other Ordinary Income (Note 14)
Collection of Written-off Claims

426,264¥

485,098$

3,969,314

424,615

483,195

3,953,959

1,642
5

1,890
12

15,298
48

0
0

0
0

8
1

2,211
4

2,757
-

20,59444

54,152

38,768504,264

1,864
14

2,048
217

17,365137

Gains on Sales of Premises and Equipment
Total Revenues¥

484,513¥528,890$

4,511,718

Expenses
Interest Expenses¥

317,814¥373,924$

2,959,442

Interest on Bonds and Notes
Interest on Borrowings

31,466
271,583

31,615
329,073

293,0092,528,943

Interest on Swaps (net)

14,7640

13,2341

137,483
7

Other Interest Expenses
Fees and Commissions (Note 15)

57

21

533

Other Operating Expenses (Note 16)
General and Administrative Expenses

2,737
26,9052,466
26,76625,493
250,539

Other Ordinary Expenses (Note 17)

24,41335

11,482
242

227,333
329

Losses on Sales of Premises and Equipment
Total Expenses¥

371,963¥

414,904$

3,463,669

Net Earnings (Loss)¥

112,550¥

113,986$

1,048,049

Accompanying notes are an integral part of these financial statements.

78

NON-CONSOLIDATED STATEMENTS OF EQUITY
Millions of yen
CapitalFor the Fiscal Year ended March 31, 2004
Balance at March 31, 2003

¥ 1,182,286

Net Change in Unrealized Gain on
Available-for-sale Securities

Retained Earnings
Accumulated
Statutory
Reserve
Deficit¥ 982,478¥ (556,061)

Net Unrealized Gainon Available-for- sale
Securities¥

264

Total Equity¥

1,608,968−−−

18,692

18,692−

18,429(18,429)−−

12,000
−

−
−

−

−
−

12,000113,986¥ 1,194,286¥ 1,000,908

Transfer from net earnings accounted
under the DBJ Law to Statutory
Reserve (Note 11)
Capital Contribution from the Japanese
Government
Net Earnings
Balance at March 31, 2004
Appropriations: (Note 11)
Provision for Statutory Reserve
Total
Unappropriated Accumulated Deficit

−
−

¥
¥

−

¥
¥

26,113
26,113−¥113,986(460,504)¥¥(26,113)(486,617)¥

18,956¥

1,753,646

¥

−
−

¥

−
−

¥

−

¥

−

(26,113)Millions of yen
Retained Earnings
Net Unrealized Gain

Balance at March 31, 2004

on Available-for- sale
Securities

Total Equity

CapitalStatutory
Reserve¥ 1,194,286¥ 1,000,908

−

−

−

(12,293)(12,293)−

26,113(26,113)−−

21,175
−

−
−

−

−
−

21,175¥ 1,215,461¥ 1,027,021−

41,896

For the Fiscal Year ended March 31, 2005
Net Change in Unrealized Gain on
Available-for-sale Securities

Accumulated
Deficit¥(460,504)¥

18,956¥

1,753,646

Transfer from net earnings accounted
under the DBJ Law to Statutory
Reserve (Note 11)
Capital Contribution from the Japanese
Government
Net Earnings
Balance at March 31, 2005
Appropriations: (Note 11)
Provision for Statutory Reserve
Payment to National Treasury
Total

¥

Unappropriated Accumulated Deficit

¥

−
−

¥
¥

41,896−(374,067)

¥

6,662

112,550¥¥(52,533)¥¥(426,600)¥−−

1,875,077−−(41,896)(10,636)−

Accompanying notes are an integral part of these financial statements.

79

112,550
¥

¥

−

¥

−

Thousands of U.S. dollars
Retained Earnings
Net Unrealized Gain
CapitalFor the Fiscal Year ended March 31, 2005
Balance at March 31, 2004

Total Equity

Statutory
Reserve

Accumulated
Deficit

9,320,311$ (4,288,148)

−

−

−

(114,479)(114,479)−

243,166(243,166)−−

197,178
−

−
−

−

−
−

197,178
1,048,049

62,045$ 17,460,452−−$ 11,121,017

Net Change in Unrealized Loss on
Available-for-sale Securities$

on Available-for- sale
Securities$
176,524$ 16,329,704

Transfer from net earnings accounted
under the DBJ Law to Statutory
Reserve (Note 11)
Capital Contribution from the Japanese
Government
Net Earnings
Balance at March 31, 2005

9,563,477

1,048,049$ (3,483,265)−

390,136(390,136)−−(99,044)(489,180)$−$$ (3,972,446)

$

−

$

$ 11,318,195

Appropriations: (Note 11)
Provision for Statutory Reserve
Payment to National Treasury
Total

$

Unappropriated Accumulated Deficit

$

−
−

$

$
$

390,136
−

$

$

−
−

Accompanying notes are an integral part of these financial statements.

80

NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying financial statements have been prepared from the accounts maintained by Development Bank of Japan (“DBJ”) in
accordance with accounting principles and practices generally accepted in Japan, which are different in certain respects as to application and disclosure
requirements of International Financial Reporting Standards.
The financial statements are not intended to present the financial position and the result of operations in accordance with accounting principles andpractices generally accepted in countries and jurisdictions other than Japan.
The amounts indicated in millions of yen are rounded down by omitting the figures less than one million Yen. Accordingly, the sum of each amountappearing in the accompanying financial statements and the notes thereto may not be equal to the sum of the individual account balances.
Amounts in U.S. dollars are presented solely for the convenience of readers outside Japan. The rate of ¥107.39=$1.00, the effective exchange rate
prevailing as of March 31, 2005, has been used in conversion. The presentation of such amounts is not intended to imply that Japanese yen amounts
have been or could have been readily translated, realized or settled in U.S. dollars at that rate or any other rate.

2. Summary of Significant Accounting Policies(a) Securities
Held-to-maturity Debt Securities are stated at amortized cost, on a straight-line basis, computed using the moving-average method.
Investments in subsidiaries are stated at cost computed using the moving-average method. Available-for-sale Securities whose current
values can be estimated are stated at market value (cost is calculated principally using the moving-average method), and other nonmarketable securities are stated at cost or amortized cost computed using the moving-average method. Investments in the limited
partnerships and other similar partnerships are accounted for at net amounts of underlying interests among their net earnings based on theirfinancial statements.
Unrealized gains and losses on Available-for-sale Securities are included in Equity.
(b) Valuation Method for Derivative Financial Instruments
All derivative financial instruments are carried at market value, except for certain derivatives that are designated as hedging instruments as
discussed below.
(c) Hedge Accounting(¡) Hedge Accounting
DBJ applies the deferral method of hedge accounting. Foreign currency swaps, which are used to hedge the foreign currency
fluctuations are translated not at market values but at contractual rates, as the foreign currency swap contracts meet the hedging criteria
under the Accounting Standards for Financial Instruments.
(™) Hedging Instruments and Hedged Items
・Hedging Instruments
Hedged Items
・Hedging Instruments
Hedged Items: Interest Rate Swaps: Bonds and Notes, Borrowings: Foreign Currency Swaps: Foreign currency denominated Loans and Bonds and Notes(£) Hedging Policy
DBJ utilizes hedging instruments to hedge interest rate and foreign currency fluctuations on its assets and liabilities within theoutstanding asset and liability amounts.
(¢) Evaluation of Hedge Effectiveness
DBJ evaluates the effectiveness of the hedges by testing periodically whether the derivatives are effective in reducing the risks
associated with the hedged items.
(d) Premises and Equipment(¡) Depreciation
Premises and Equipment are depreciated using the declining-balance method, except for buildings (excluding installed facilities) that are
depreciated on a straight-line basis.
The estimated useful lives are principally as follows:
Buildings: 22 years to 50 years
Equipment: 3 years to 20 years

81(™) Accounting standard for impairment of fixed assets
On August 9, 2002, the Business Accounting Council in Japan issued "Accounting Standard for Impairment of Fixed Assets". The
standard requires that fixed assets be reviewed for impairment whenever events or changes in circumstances indicate that thecarrying amount of an asset may not be recoverable. An impairment loss shall be recognized in the income statement by reducing thecarrying amount of impaired assets or a group of assets to the recoverable amount to be measured as the higher of net selling price andvalue in use.
The standard shall be effective for fiscal years beginning April 1, 2005. However, an earlier adoption is permitted for fiscal years beginning
April 1, 2004 and for fiscal years ending between March 31, 2004 and March 30, 2005.
DBJ has not yet applied this new standard nor has determined the effect of applying it on the non-consolidated financial statements.
(e) Amortization of deferred charges"Discounts on Bonds and Notes" are amortized over the life of Bonds and Notes, and "Bonds and Notes Issuance Costs" are charged to income
as incurred.
(f) Foreign currency translation and revaluation method
Assets and liabilities denominated in foreign currencies are translated into Japanese yen at the market exchange rates prevailing at the fiscal
year end.
(g) Allowance for Loan Losses
DBJ provides for "Allowance for Loan Losses" as detailed below pursuant to the internal rules for self-assessment of credit quality and loan
losses.
The allowance for claims on debtors who are legally bankrupt, in special liquidation or effectively bankrupt is provided based on the amountof claims, after the write-off described below, net of amounts expected to be collected through disposal of collateral or execution of guarantees.
The allowance for claims on debtors who are not legally bankrupt at the moment, but likely to become bankrupt for which future cash flows
cannot reasonably be estimated is provided for the amount considered to be necessary based on an overall solvency assessment performed on
the claims, net of amounts expected to be collected through disposal of collateral or execution of guarantees.
With respect to the claims on debtors who are likely to become bankrupt or to be closely monitored, and for which future cash flows canreasonably be estimated, the allowance is provided for the difference between the present value of expected future cash flows discounted at
the contracted interest rate and the carrying value of the claims.
The allowance for claims on debtors other than those described above is provided based on the historical default rate, which is calculated basedon the actual defaults over a certain historical period (the average financing period for DBJ).
All claims are assessed initially by investment and lending departments and then by Credit Risk Management Department, which is
independent from the investment and lending departments based on internal rules for self-assessment of credit quality. The allowance is provided
based on the results of the self-assessment.
With respect to the claims on debtors who are legally or substantially bankrupt with collateral or guarantees, the amount of claims
exceeding the estimated market values of collateral or guarantees, which are deemed un-collectible, have been written-off, and totaled ¥104,845
million ($976,305 thousand) and ¥55,184 million for the year ended March 31, 2005 and 2004, respectively.
(h) Allowance for Investment Losses"Allowance for Investment Losses" is provided based on the estimated losses on non-marketable debt securities.
(i) Allowance for Bonus Payments“Allowance for Bonus Payments” is calculated and provided for based on the estimated amounts of future payment attributable to the services
that have been rendered by employees and executive directors to the date of the balance sheets.
(j) Allowance for Employee Retirement Benefits“Allowance for Employee Retirement Benefits” represents future payments for pension and retirement benefits to employees andexecutive directors, and is accrued based on the projected benefit obligations and estimated pension plan assets at fiscal year end. The actuarial
gain or loss is recognized during the year it arises.
(k) Equipment Used under Finance Lease Agreements
Equipment used under finance lease agreements is accounted for as equipment leased under operating leases, except for those in which theownership of leased equipment transfers to the lessee, in which case the equipment is capitalized.
(l) Consumption tax
Income and expense subject to consumption tax exclude related consumption taxes paid or received.

82

(m) Income taxes
DBJ is exempt from taxes based on income, however, DBJ is subject to parity taxes among local taxes.
(n) Change in Presentation on Non-consolidated Balance Sheets
In the previous years, equity interests in limited liability partnerships (LLPs), and those in voluntary partnership under the Civil Code and silent
partnership under the Commercial Code characteristics of which are similar to those of LLPs had been included in “Other assets”.
However, from this fiscal year, these are included in “Securities” as they are defined as securities under the Securities and Exchange Law by
the “Partial Revision of Securities and Exchange Law” (Law No.97 dated June 9, 2004).
As a result of this change, “Other assets” decreased by ¥45,759 million ($426,109 thousand) and “Securities” increased by the same amountcompared to previous year.

3. Securities
Securities as of March 31, 2005 and 2004 are as follows:
Millions of yen
March 31
Japanese Government Bonds
Corporate Bonds¥

Equities

2005
152,925
60,816¥¥391,172

Thousands of U.S. dollars
2005
1,424,015$
566,3151,226,100

176,021150

131,670
45,760

Other securities

2004
171,488
79,320¥426,981426,115$

3,642,545

Notes:Investments in subsidiaries included in “Equities” as of March 31, 2005 and 2004 are ¥7,610 million ($70,863 thousand) and ¥10 million, respectively..

4. Non-performing Loans
The amounts of Non-Performing Loans included in “Loans” on the non-consolidated balance sheets as of March 31, 2005 and 2004 are as follows:
Millions of yen
March 31
Loans to Bankrupt Debtors¥

Delinquent Loans
Loans Past Due Three Months or More
Restructured Loans¥

2005
25,762
233,765¥

Thousands of U.S. dollars
2004
23,705
271,472$2005
239,901
2,176,794

466

270

4,341

138,629
398,624

193,210488,658

1,290,896
3,711,932¥$

Notes: 1. The amounts of Loans indicated above are stated at gross amounts, before reduction of allowance for loan losses.
2.“Loans to Bankrupt Debtors” represent non-accrual loans to debtors who are legally bankrupt as defined in Article 96-1-3 and 4 of the Japanese Tax Law Enforcement Regulation.
3.“Delinquent Loans” represent non-accrual loans other than (¡) Loans to Bankrupt Debtors and (™) loans whose interest payments are deferred in order to assist or facilitate therestructuring efforts of borrowers in financial difficulties.
4.“Loans Past Due Three Months or More” are loans whose principal or interest payment is three months or more past due, and do not fall under the category of “Loans to Bankrupt
Debtors” or “Delinquent Loans”.
5.“Restructured loans” are loans whose repayment terms have been modified to the advantage of debtors through means such as reduction or exemption of interest rates,
postponement of principal and interest payments, and forgiveness of loans to support or restructure the debtors’ businesses, and do not fall under the category of “Loans to Bankrupt
Debtors”, “Delinquent Loans”, or “Loans Past Due Three Months or More”.

DBJ provides commitment lines under which it lends, upon the borrowers’ request, necessary funds up to the pre-determined amount that is within
the borrowers’ financing needs for the projects and up to the agreed maximum amount, provided that their requests meet terms and conditions for
disbursement prescribed in the loan agreements. The total balance of unused commitment lines as of March 31, 2005 and 2004 are ¥70,556 million($657,014 thousand), including ¥41,328 million ($384,841 thousand) being financed within one year and ¥90,985 million, including ¥49,517 million
being financed within one year, respectively.

835. Other Assets
Other Assets as of March 31, 2005 and 2004 are as follows:
Millions of yen
2005

March 31
Prepaid Expenses
Accrued Income¥

Derivatives

92
59,168¥

5,565
171,801

Deferred Hedge Losses
Others

8,767¥

54
67,967

Thousands of U.S. dollars
2005
860
$
550,970923
183,92251,826
1,599,795

2004

245,396

51,881¥

304,750

81,643$2,285,094

Notes: Deferred Hedge Losses are net realized or unrealized losses from hedging instruments. The gross amounts of deferred hedge gains and losses before netting are ¥8,870 million ($82,598
thousand) and ¥180,672 million ($1,682,393 thousand) as of March 31, 2005, respectively. The corresponding amounts as of March 31, 2004 are ¥3,704 million and¥187,627million, respectively.

6. Premises and Equipment
Premises and Equipment as of March 31, 2005 and 2004 are as follows:
Millions of yen
2005

March 31
Tangible Fixed Assets
Land¥

Buildings
Equipment

20,395¥

2005

20,424$

34,1682,018

34,4591,995

189,923
320,878
18,584¥−56,850¥141
56,753$¥(19,634)
37,216¥(19,057)
37,695$346,555

¥

383

¥

384

$

3,575

¥

17
401

¥

18
402

$

161
3,736

¥

385

¥

386

$

3,586

Construction in ProgressLess- Accumulated Depreciation
Net Book Value

Thousands of U.S. dollars
2004−
529,385(182,830)

Intangible Assets
Guarantee Deposits
OthersLess - Accumulated Amortization
Net Book Value

(16)

(15)

(150)

7. Allowance for Loan Losses
Allowance for Loan Losses as of March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
March 31
General Allowance for Loan Losses

2005¥

149,284¥

2004
249,415¥

130,999
280,284¥

146,465
395,881Specific Allowance for Loan Losses$

2005
1,390,119$

1,219,848
2,609,967

84

8. Other Liabilities
Other Liabilities as of March 31, 2005 and 2004 are as follows:
Millions of yen
March 31
Accrued Expenses¥

Unearned Income
Deposits from Employees
Derivatives
Others¥2005
36,654
18,692¥Thousands of U.S. dollars
2004
49,96331,714$

2005
341,325
174,063

124

153

1,161

181,951
11,073

187,127
8,867

1,694,308
103,112248,497¥

277,826$

2,313,969

9. Acceptances and Guarantees
Acceptances and Guarantees as of March 31, 2005 and 2004 are as follows:
Millions of yen
March 31
Guarantees

¥
¥

2005
98,75798,757¥¥

Thousands of U.S. dollars
2004
76,812
76,812$$

2005
919,611
919,611

10. Assets Pledged as Collateral
Securities collateralized in Real Time Gross Settlement for bank deposit at Bank of Japan are ¥122,928 million ($1,144,688 thousand) as of March
31, 2005 and ¥121,693 million as of March 31, 2004, respectively.

11. Retained Earnings
A portion of net earnings calculated pursuant to Article 4 of the Development Bank of Japan Law (“DBJ Law”) was appropriated to provision of
Statutory Reserve and for payment to the National Treasury as stipulated by Article 41 of the DBJ Law. Unappropriated Accumulated deficit, losses
carried forward to the following fiscal years, are the amounts which are not appropriated under the DBJ Law for each fiscal year.

12. Fees and Commissions (Income)Fees and Commissions (Income) for the fiscal years ended March 31, 2005 and 2004 are as follows:

For the Fiscal Years ended March 31
Commissions¥¥

Millions of yen
2005
2004
2,211
¥
2,757
2,211
¥
2,757

Thousands of U.S. dollars
2005$
20,594$
20,594

13. Other Operating Income
Other Operating Income for the fiscal years ended March 31, 2005 and 2004 are as follows:
Millions of yen
For the Fiscal Years ended March 31
Foreign Exchange Gains

85

2005
¥
¥

2004
4
4

¥
¥

−
−

Thousands of U.S. dollars
2005
$
44
$
44

14. Other Ordinary Income
Other Ordinary Income for the fiscal years ended March 31, 2005 and 2004 are as follows:
Millions of yen
2005

For the Fiscal Years ended March 31
Reversal of Allowancefor Loan Losses
Gains on Sales of Equities and¥Other Securities
Gains on Money Held in Trust

50,998¥¥2,786
54,152

2005

37,787

$

31
149

257
110

OthersThousands of U.S. dollars
2004

¥

801
38,768474,889
2,396
1,027

$

25,952504,264

15. Fees and Commissions (Expenses)
Fees and Commissions (Expenses) for the fiscal years ended March 31, 2005 and 2004 are as follows:
Millions of yen
For the Fiscal Years ended March 31
Wire Transfer Service Charges

2005

Thousands of U.S. dollars
2005

2004

¥

5
51

¥

5
15

$

49

¥

57

¥

21

$

533

Commissions484

16. Other Operating Expenses
Other Operating Expenses for the fiscal years ended March 31, 2005 and 2004 are as follows:
Millions of yen
2005

For the Fiscal Years ended March 31
Foreign Exchange Losses
Bonds and Notes Issuance Costs

¥

−

¥

1,536
319
¥

2,737

2005
1

$

1,201
871

881

Losses on derivative instruments
OthersThousands of U.S. dollars
2004

14,304
2,978

392
¥

2,466

−
8,211

$

25,493

17. Other Ordinary Expenses
Other Ordinary Expenses for the fiscal years ended March 31, 2005 and 2004 are as follows:
Millions of yen
For the Fiscal Years ended March 31
Provision for Investment Losses¥

Write-off of Loans
Losses on Sales of Equities andOther Securities
Write-off of Equities
Losses on Money Held in Trust
Others
¥

2005
6,620

¥

Thousands of U.S. dollars
2004
4,075

$

2005
61,646

14,2683,836

132,869

7
92

16
589

74
863

957
2,466

1
2,963

8,913
22,96824,413¥

11,482$

227,33386

18. Lease Transactions(a) Finance Lease Transactions(Excluding leases where the ownership of the property is deemed to have transferred to the lessee)
Millions of yen
2005
March 31
Acquisition Cost Equivalents

Equipment¥
931

Less- Accumulated Depreciation
Equivalents
Book Value Equivalents

(428)
¥

2004

Others
¥
226

¥

(95)

503

¥

Total
1,158

Equipment
¥
761

(524)

130

¥

634

Others
¥
204

(367)
¥

393

¥

(51)
¥

153

Total
965
(418)

¥

547

Thousands of U.S. dollars
2005
March 31
Acquisition Cost Equivalents
Less-Accumulated Depreciation$

Equipment
8,678$

Others2,110

Total$ 10,788

Equivalents
Book Value Equivalents(3,987)$ 4,691(893)$ 1,217(4,880)$ 5,908

Future lease payments subsequent to the end of the fiscal year for finance leases (including the interest portion thereon) are summarized below:
Millions of yen
March 31
Due in One Year or Less

¥

2005
242
409

¥

2004
216
335

¥

651

¥

552

Due after One Year

Thousands of U.S. dollars
2005
2,254
$
3,809
$

6,063

Lease expense, depreciation equivalents and interest expense equivalents relating to finance leases for the fiscal year ended March
31,2005 amount to ¥312 million ($2,907 thousand), ¥270 million ($2,515 thousand) and ¥53 million ($500 thousand), respectively. The
corresponding amounts for the fiscal year ended March 31, 2004 are ¥239 million, ¥231 million and ¥7 million, respectively.
Notes: 1.Depreciation equivalents are calculated using the straight-line method, assuming that useful life is equal to the lease term and the residual value at the end of the lease term is zero.
2.Interest expenses are defined as the difference between total lease payments and acquisition equivalents, which are allocated over the lease term using the interest method.

(b) Operating Lease Transactions
DBJ has no future lease payments subsequent to the end of fiscal year for operating lease transactions as of March 31, 2005 and 2004.

19. Market Value of Securities
Market value of Securities, excluding investments in subsidiaries and affiliates, are reported in the notes to consolidated financial statements. DBJ
holds no investments in subsidiaries with market value as of March 31, 2005 and 2004.

87

DEVELOPMENTBANK OFJAPAN

Accounts Based on
Accounting Standards forSpecial Agencies, etc.

88

89

NON-CONSOLIDATED BALANCE SHEETS
Thousands of U.S. dollars

Millions of yen
March 31

2005

2004

2005

AssetsCash and Due from banks (Note 3)¥

Securities (Note 4)

18,035¥

19,206$167,947

320,825

327,918

2,987,484

13,965,566

14,840,881

130,045,314(41,896)
13,923,669(44,522)
14,796,358(390,136)
129,655,178

Equity Investments

200,132

244,077

1,863,601

Premises and Equipment (Note 6)

57,064(19,704)

57,029(19,101)

531,374(183,484)

37,35937,928347,890

Accrued Income Receivable (Note 7)

60,633

68,898564,615

Other Assets (Note 8)

9,208

533

85,745

Unamortized discount on Bonds and Notes

2,618

2,296

24,386

Customers' Liabilities for Acceptances and Guarantees

98,757

76,821

919,612Loans (Note 5)
Less-Allowance for Loan Losses

Less-Accumulated depreciation

Total Assets¥

14,671,241¥

15,574,038

136,616,458

Thousands of U.S. dollars

Millions of yen
2005

$

2005

2004

Liabilities, Capital and Statutory Reserve
Liabilities
Bonds and Notes¥

Long-term Borrowings (Note 9)

1,994,801¥

1,780,606$

18,575,297

10,214,800

11,403,450

95,118,726

Accrued Expenses Payable (Note 10)

38,155

51,126355,299

Other Liabilities (Note 11)29,711

40,726276,672

Acceptances and Guarantees

98,757

76,821

919,612

12,376,225

13,352,730

115,245,606

Capital (Note 12)1,215,461

1,194,286

11,318,195

Statutory Reserve (Note 2 (j))

1,079,554

1,027,021

10,052,657

Total Liabilities
Capital and Statutory Reserve

Total Capital and Statutory Reserve
Total Liabilities, Capital and Statutory Reserve
Accompanying notes are an integral part of these financial statements.

2,295,015¥

14,671,241

2,221,307¥

15,574,038

21,370,852$

136,616,458

90

NON-CONSOLIDATED STATEMENTS OF EARNINGS
Thousands of U.S. dollars

Millions of yen
2005

For the Fiscal Years ended March 31

2004

2005

Interest Income
Interest on Loans
Interest on Securities¥

427,027¥

482,935$

3,976,415

1,425

1,700

13,273242
428,695

232
484,867

2,261
3,991,949

Interest Expenses
Interest on Bonds and Notes

38,61337,572359,559

Interest on Borrowings

278,851

336,034

2,596,620

317,464

373,606

2,956,179

111,231111,260

1,035,770

Other Interest Income

Net Interest Income
Other Income
Fees and Commissions (Note 13)

2,250

2,839

20,952

5,522
7,772

4,204
7,044

51,421
72,373Administrative and Other Expenses
Salaries and related expenses

16,62816,928

154,846

Other administrative expenses
Depreciation

9,603
924

9,966
982

89,427
8,610

Fees and Commissions (Note 15)54
35,837

16
61,503508
333,715

Others (Note 14)

Write-off of Claims (Note 16)
Others (Note 17)

Earnings before Provision for Loan Losses
Reversal of Allowance for Loan Losses
Net Earnings (Note 2(i))

¥

6,047

5,641

56,30969,09695,039643,415

49,907
2,625

23,266
2,847

464,728
24,45252,533¥

26,113$

489,180

Appropriation of Net Earnings (Note 2(j))
Statutory reserve

41,896

26,113

Payment to National Treasury
Total Appropriation of Net Earnings

10,636−

Accompanying notes are an integral part of these financial statements.

91¥

52,533¥

26,113

390,136
99,044$

489,180

NON-CONSOLIDATED LIST OF ASSETSMarch 31, 2005
Cash and Due from banks
Cash
Due from banks

Securities
Japanese Government Bonds

Millionsof yen18,035¥2
18,033

320,825
259,990

Thousands of
U.S. dollars
167,947$25
167,9222,987,484
2,420,996

Remarks(Millions of yen/ Thousands of U.S. dollars)

Current deposits: 24 banks,including
Bank of Japan
Ordinary deposits: 2 banks, including
Sumitomo Mitsui Banking Corporation

IssuesFinancing bills: 2 holdings
Coupon-bearing government bonds(2,5,10,15,30 years): 31 holdings
Treasury bills: 1 holding

Corporate Bonds
Other securities

50,814
10,020473,177
93,311$22,658¥15,600$145,264

Face value¥30,000$279,356¥222,800$2,074,681¥3,800$35,385

Book value¥29,999$279,354¥226,190$2,106,257¥3,799$35,385

28 holdings
Collateralized debt obligations: 2 holdings
Equity acquired by excising the warrant,etc.:
2 holdings

Loans
Yen loans
Direct loans
Agency loans
Foreign currency loans
Allowance for Loan Losses
Equity Investments
Premises and Equipment
Premises and Equipment for Business¥2,433

Book value¥10,000$93,119¥20$192

14,759 holdings
14,725 holdings
14,717 holdings
8 holdings
34 holdings

13,965,566
13,874,500
13,873,289
1,210
91,066(41,896)
200,132
37,35937,359130,045,314
129,197,319
129,186,045
11,274
847,995(390,136)
1,863,601
347,890
347,890

Accrued Income Receivable
Accrued Interest on Loans
Accrued Interest on Securities
Accrued Guarantee Fees

60,63359,976643
13564,615
558,496
5,991
128Interest accrued on loans but not yet received at the end of the fiscal year
Interest accrued on securities but not yet received at the end of the fiscal year
Fees accrued on guarantees but not yet received at the end of the fiscal year

Other Assets
Suspense payments
Guarantee deposits

9,208
910
384

85,7458,483
3,578

34 holdings
84 holdings

Estimated payments

7,799

72,627

Deposits and guarantees relating to land and buildings
leased for business use
Estimated payment to the National Treasury

113
Others2,618
Unamortized discount on Bonds and Notes
Customers' Liabilities for Acceptances
98,757and Guarantees¥ 14,671,241
Total Assets

1,057
24,386109 holdings
Difference between face value and proceeds from bonds

919,612$ 136,616,458

471 holdingsBook value$190,143¥20,419(1) Land: 89 properties /65% of 43,966g,
and 134,187g
16,577
154,366(2) Buildings: 214 buildings /95% of 2,244g,
65% of 846g, and 108,608g(Gross floor area)
360
3,357
(3) Equipment: 2,005 items
113(4) Petty sum depreciable assets: 108 items(depreciated over three years as prescribed by
tax code)111(5) Key money and other: 1 holding*Accumulated depreciation amounted to ¥19,704 million ($183,484 thousand).

52 cases

Note: Amounts in U.S. dollars are presented solely for the convenience of readers outside Japan. The rate of ¥107.39=$1.00, the effective exchange rate prevailing as of March 31, 2005, has beenused in conversion. The presentation of such amounts is not intended to imply that Japanese yen amounts have been or could have been readily translated, realized or settled in U.S. dollars
at that rate or any other rate.

92

NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
Development Bank of Japan (“DBJ”) maintains its records and prepares its statutory financial statements in accordance with Development Bankof Japan Law (“DBJ Law”) and the regulations thereunder and in accordance with accounting principles generally accepted in Japan, which are
different in certain respects as to the application and disclosure requirements from the International Financial Reporting Standards. The
financial statements are not intended to present the financial position and results of operations in accordance with accounting principles and procedures
generally accepted in countries and jurisdictions other than Japan.
Consolidated financial statements are not prepared because DBJ has no subsidiaries under the DBJ Law.
The amounts indicated in millions of yen are rounded down by omitting the figures less than one million yen. Accordingly, the sum of each amountappearing in the accompanying financial statements and the notes thereto may not be equal to the sum of the individual account balances.
Amounts in U.S. dollars are presented solely for the convenience of readers outside Japan. The rate of ¥107.39=$1.00, the effective exchange rate
prevailing as of March 31, 2005, has been used in conversion. The presentation of such amounts is not intended to imply that Japanese yen amounts
have been or could have been readily translated, realized or settled in U.S. dollars at that rate or any other rate.

2. Summary of Significant Accounting Policies(a) Securities
Securities are stated at cost, which is determined by the moving average method.
Under the DBJ Law, DBJ cannot invest surplus funds except in Japanese Government Bonds or other bonds permitted by the DBJ Law, or indeposits at the Fiscal Loan Fund, Bank of Japan or the financial institutions specified by the Ministry of Finance.
(b) Derivatives
Derivative transactions are not recorded on the non-consolidated balance sheets. Income and expenses from derivative transactions arerecognized in the non-consolidated statements of earnings on a cash basis.
(c) Translation of accounts denominated in foreign currencies
DBJ holds foreign currency swap to hedge exchange rate risks on its loans, bonds and notes that are denominated in foreign currencies. These
foreign currency swaps are not recognized in the non-consolidated balance sheets. The foreign currency denominated loans, bonds and notesthat are being hedged are measured at the contract rates of the respective foreign currency swaps designated as hedging instruments.
(d) Depreciation method for Premises and Equipment
In accordance with certain provisions set forth the Corporation Tax Law, depreciation is provided based on the declining balance method for
all Premises and Equipment except for buildings and key money, which are depreciated based on the straight-line method.
(e) Unamortized discounts on Bonds and Notes
Discounts on bonds and notes are amortized using the straight-line method over the average period of redemption in accordance with an
ordinance defined by the Ministry of Finance.
(f) Bonds and Notes issuance costs
Bonds and Notes issuance costs are recorded as expenses in the period they are incurred in accordance with a provision defined by the Ministryof Finance.
(g) Allowance for Loan Losses
A provision for loan losses is established in accordance with the requirements set forth by the Ministry of Finance pursuant to the DBJ Law.
Under the provision, the allowance for loan losses is limited to 0.3% of loans outstanding at the end of each fiscal year.
(h) Employee retirement benefits
In accordance with the DBJ Law and regulations thereunder, employee retirement benefits to employees (including payment to employees
reaching retirement age) are included in DBJ’s budget of revenues and expenditures on the basis of anticipated payments to be made during
the relevant year and are included in “Salaries and related expenses” in the non-consolidated statements of earnings when paid.
(i) Income taxes
DBJ is exempt from taxes based on income, however DBJ is subject to parity taxes of the inhabitants’ taxes among local taxes.

93

(j) Appropriation of net earnings
In accordance with provisions of the DBJ Law and a related law, DBJ is required to set aside out of net earnings as a statutory reserve, the largerof (¡) an amount equivalent to 20% of net earnings or (™) an amount equivalent to 0.3% of loans outstanding at the end of each fiscal year
(if this amount is in excess of the amount of net earnings for the year, then the amount of such net earnings). The reserve provided may only
be used to cover net losses. The balance of net earnings remaining each year, after providing for this reserve, is to be paid to the National
Treasury by May 31 of the following fiscal year. Interim payments are provided for under the Cabinet Order.
As for the fiscal year ended March 31, 2004, the payment to the National Treasury was not made, because the amount of net earnings was
not in excess of such required amounts.
(k) Consumption tax
Income and expense subject to consumption tax include related consumption taxes paid or received.

3. Cash and Due from banks
Cash and Due from banks as of March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
2005

March 31
Cash
Due from banks

2004

¥

2

¥

18,03318,035

2005

¥

2

¥

19,204
19,206$25$

167,922167,947

4. Securities
Securities as of March 31, 2005 and 2004 are as follows:
Millions of yen
2005

March 31
Japanese Government Bonds¥

259,990
50,814¥

320,825

Corporate Bonds
Other securities¥

2004
248,586
69,310¥327,918

10,020Thousands of U.S. dollars
2005$
2,420,996
473,177

10,02093,311$

2,987,484

5. Loans
Loans as of March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
March 31
Yen loans

2005¥

Direct loans

13,874,500¥

13,873,289
1,210

Agency loans
Foreign currency loans

2004
14,733,869
14,732,453
1,415

91,066¥

13,965,566$

129,186,045
11,274

107,012¥

14,840,881

2005
129,197,319

847,995$

130,045,314

Pursuant to the DBJ Law and regulations thereunder, loans in arrears are defined as the loans for which the principal payments are overdue by six
months or more. This categorization is different from the categorization of non-performing loans as defined under the Banking Law and the Financial
Revitalization Law. The amounts of the loans in arrears included in “Loans” on the non-consolidated balance sheets as of March 31, 2005 and 2004
are as follows:
Thousands of U.S. dollars

Millions of yen
2005

March 31
Loan past-due for six months or more as toprincipal payments¥¥

74,634
74,634

2004¥¥

95,466
95,466

2005$$

694,990694,990

94

6. Premises and Equipment
Premises and Equipment as of March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
March 31
Premises and Equipment for Business

2005

$

2005
531,374−

57,064−¥¥57,064¥57,029$531,374¥(19,704)
37,359¥(19,101)
37,928$(183,484)
347,890

2004
68,051
835

Thousands of U.S. dollars
2005$
558,496
5,991

10
68,898$¥Construction in progressLess- Accumulated Depreciation
Net Book Value

2004
56,888141

7. Accrued Income Receivable
Accrued Income Receivable as of March 31, 2005 and 2004 are as follows:
Millions of yen
2005

March 31
Accrued Interest on Loans
Accrued Interest on Securities¥

Accrued Guarantee Fees¥

59,976643
1360,633¥¥

128564,615

8. Other Assets
Other Assets as of March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
2005

March 31
Suspense payments¥

Guarantee deposits
Estimated Payments

7,799
113

Others
¥

95

910
384

9,208

2004
¥

95
384

¥

53

$

−
533

$

2005
8,483
3,578
72,627
1,057
85,745

9. Long-term Borrowings
DBJ borrows funds from the Japanese Government in order to meet funding requirements for the conduct of operations specified in the DBJ Law.
DBJ also accepts other funds received from government sources in order to apply them to the sources of funds necessary to financiallycontribute to a particular government policy with respect to the operations provided in the DBJ Law, as provided in the Cabinet Order.
Long-term Borrowings as of March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
March 31
Fiscal Loan Fund

2005¥

9,676,259¥

2004
10,755,891$

2005
90,103,911

Reserve Funds of the Postal Life Insurance
Special Account150,728

219,838

1,403,557

Industrial Investment Special AccountFunds entrusted

366,149
21,663402,869
24,851

3,409,526
201,732¥

10,214,800¥

11,403,450$

95,118,726

10. Accrued Expenses Payable
Accrued Expenses Payable as of March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
March 31
Accrued interest on Bonds and Notes

2005¥

Accrued interest on Long-term Borrowings

5,943

¥

32,2092

Other accrued expenses¥

38,155

2004
7,204

$

299,934
22

43,9182¥

51,126

2005
55,342$355,298

11. Other Liabilities
Other Liabilities as of March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
March 31
Loan Redemption

2005¥

Suspense receipts

7,939

¥

2,962
18,692

Unearned income
Others

29,711$

2,845
31,714

117
¥

2004
6,038

27,583174,063

128¥

40,726

2005
73,928

1,098$

276,672

12. Capital
The Japanese Government is the sole owner of the equity interest, which is not evidenced by documents such as stock certificates, but isevidenced at the Registration Office of the Legal Affairs Bureau of Japan.

9613. Fees and Commissions (Income)Fees and Commissions (Income) for the fiscal years ended March 31, 2005 and 2004 are as follows:
Millions of yen
For the fiscal year ended March 31
Commissions received

2005

Thousands of U.S. dollars

¥

2,102

¥

2004
2,257

¥

147
2,250

¥

582
2,839

Guarantee Fees$

2005
19,576$

1,376
20,952

14. Others (Income)
Others (Income) for the fiscal years ended March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
2005

For the Fiscal Years ended March 31
Miscellaneous Interest received¥

Collection of written-off claims
Income from Equity Investments

3,014
32

¥

¥

5,522

$

27

103
2,371

Others

2004
2,846
71

968
22,083

1,259
¥

4,204

2005
28,069300$

51,420＊ “Miscellaneous Interest received” is mainly composed of receipt from credit derivative transactions.

15. Fees and Commissions (Expenses)
Fees and Commissions (Expenses) for the fiscal years ended March 31, 2005 and 2004 are as follows:
Thousands of U.S. dollars

Millions of yen
For the Fiscal Years ended March 31
Commissions paid

97

2004

2005
¥

54

¥

54

¥
¥

16
16

$
$

2005
508
508

16. Write-off of Claims
DBJ writes-off loans past-due, equity investments and securities declined in value drastically, only after exhausting all available remedies
including realization on any collateral and disposal by sale of claims. Write-offs are recorded at fiscal year end only with the approval of the Ministryof Finance. The amounts of Loans, Equity Investments and Securities written off for the fiscal years ended March 31, 2005 and 2004 are as follows:
Millions of yen
For the Fiscal Years ended March 31
Securities written off
Loans written off

2004

2005
¥

Equity Investments written off¥−
29,0686,769
35,837¥¥30
57,194
4,279
61,503Thousands of U.S. dollars
2005$−
270,679$

63,036
333,715

17. Others (Expenses)
Others (Expenses) for the fiscal years ended March 31, 2005 and 2004 are as follows:
Millions of yen
2005

For the Fiscal Years ended March 31
Miscellaneous Interest paid
Amortization of Discount on Bonds and

¥

Notes

2,598

¥

2,195
¥

6,047

Thousands of U.S. dollars
2005$
24,195

337
1,201

371
881

Bonds and Notes issuance cost
Others

2004
2,485

3,459
8,211

1,616
¥

5,641

20,444$56,309＊ “Miscellaneous Interest paid” is mainly composed of payment for credit derivative transactions.

18. Credit Derivative Transactions
DBJ utilizes credit default swap as part of its “Acceptances and Guarantees on Customers’ Debts” business within the limit of a certain definite amountof risk. Contract value as of March 31, 2005 and 2004 are as follows:

March 31
Sold
Bought¥¥Millions of yen
2004
2005
¥
2,129,857
1,853,901¥
2,113,457
1,837,501

Thousands of U.S. dollars
2005$
17,263,262$
17,110,548

98

99

BOARD OF DIRECTORS (as of July 19, 2005)

Sumihito Okawa

Takeshi Komura

Kimio Yamaguchi

GovernorTakeshi Komura
Deputy Governor

Deputy Governor

Kimio Yamaguchi

Sumihito Okawa

Senior Executive Director

Senior Executive Director

Mikio Araki

Fumio Inui

Senior Executive Director

Senior Executive Director

Fumiyuki Kashima

Kozo Oikawa

Senior Executive Director

Senior Executive Director

Keiji Taga

Kenichi Fukaya

Senior Executive Director

Senior Executive Director

Fumio Matsubara

Hirokazu Horinouchi

Senior Executive Director

Senior Executive Director

Hisato Nagaoka

Hisao Ochi

Senior Executive Director

Senior Executive Director

Keimei Kaizuka

Toshiharu Kitamura

Auditor

Auditor

Hiroyuki Hoshi

Hideki Ogata

100

ORGANIZATION CHART (as of April 1, 2005)[ Head Office ]Internal Audit Department
Inspection Department
Office of Secretariat
Human Resources Management Department
Credit Analysis Department

Corporate Planning Department

Operations Evaluation OfficeFinance Planning & Coordination Department

Office of Financial Planning &Risk Management

Credit Risk Management Department
Information Resources Department
Treasury Department
General Affairs Department[ Community Revitalization Support Division ]Governor

SeniorExecutive
Director

Planning Department for Regional Development
Department for Urban Development

Office of Planning & Researchfor Metropolitan Area

Department for Regional Development

DeputyGovernor[ Environment and Infrastructure Support Division ]Policy Planning Department
Environment & Energy Department
Commerce & Logistics Department
Transportation Department

Auditor[ Technology and Industry Creation Division ]Department for Technology & Growth Business
Manufacturing & Technology Department
Information & Telecommunications Department
Project Finance Department
Planning Department for Investment Banking
Business Restructuring Department
Department for Business Development
Department for International Affairs

6 Overseas Representative Offices＊3

Economic & Industrial Research Department
Research Institute of Capital Formation

Research Center for Regional Policy[ Domestic Branches & Offices ]10 Branches＊1＊ 1 Branches : Hokkaido

Tohoku Niigata Hokuriku Tokai Kansai Chugoku Shikoku Kyushu Minami-Kyushu＊ 2 Representative Offices : Hakodate

Kushiro Aomori Toyama Matsue Okayama Matsuyama Oita

＊ 3 Overseas Representative Offices : Washington, D.C.

101

8 Representative Offices＊2

New York Los Angeles London Frankfurt Singapore

Location of Head and Branch Offices and Directory
Hokkaido Branch

Hakodate office

Aomori office
Kushiro Office

HEAD OFFICE
Domestic Branches
Representative Offices

Niigata Branch

Toyama Office
Hokuriku Branch
Tohoku Branch
Okayama Office
Matsue Offce
Chugoku Branch

HEAD OFFICE

Kyushu Branch
Tokai Branch
Kansai Branch
Shikoku Branch
Matsuyama OfficeLondonRepresentative OfficeFrankfurt
Representative Office

Oita Office

New York
Representative Office

Minami-Kyushu Branch

Los Angeles
Representative Office

Washington, D.C.
Representative Office

Singapore
Representative Office

Head Office

Overseas Representative Offices

9-1, Otemachi 1-chome, Chiyoda-ku,
Tokyo 100-0004, Japan
Tel: +81-3-3244-1900
http://www.dbj.go.jp/english/index.html• Washington, D.C. Representative Office1101-17th Street, N.W., Suite 1001,
Washington, D.C. 20036, U.S.A.
Tel: +1-202-331-8696

To Kanda

Shuto Expressway• Los Angeles Representative Office
601 South Figueroa Street, Suite 2190,
Los Angeles, CA 90017-5748, U.S.A.
Tel: +1-213-362-2980

Development Bank of Japan
Japan Business
Federation (Keidanren)
Nikkei Bldg.
Koko Bldg.
NTT
JA Bldg.

KDDI• New York Representative Office1251 Avenue of the Americas, Suite 830,
New York, N.Y. 10020, U.S.A.
Tel: +1-212-221-0708

Mitsui MutualLife Insurance• London Representative Office
Level 12, City Tower, 40 Basinghall Street,
London, EC2V 5DE,
United Kingdom
Tel:+44-20-7638-6210• Frankfurt Representative OfficeFrankfurter Buero Center,
Mainzer Landstrasse 46,60325 Frankfurt am Main,
Federal Republic of Germany
Tel: +49-69-7191760• Singapore Representative Office
36 Robinson Road, #07-04 City House,
Singapore 068877
Tel: +65-6221-1779

Marunouchi Line
Otemachi Sta.
(Exit A1)

Sankei Bldg.
Yomiuri Bldg.

JR LineHibiya Dori (St.)

Chiyoda Line
Otemachi Sta.
(Exit C1)

Hanzoumon Line
Otemachi Sta.
Otemachi Bldg.

Otemachi First
Square Bldg.
To TokyoTozai Line
Otemachi Sta.

Published: September 2005
By: Development Bank of Japan,
Corporate Planning Department (Head Office)102