Shinich   Onose, General Manager of Corporate Planning Dept. June 24, 2022 (scheduled) June 2, 2022 (scheduled) June 27, 2022 (scheduled) Scheduled (for investors) IR Conference: (Japanese yen amounts of less than 1 million or the first decimal place have been rounded down.) 1. Financial Highlights (from April 1, 2021 to March 31, 2022)
(Note) "Capital assets to total assets" represents ("Net assets"-"Equity warrants") / "Total assets" at the end of each period. The ratio above is not the one based on the regulation of Capital Adequacy Ratio.
3. Consolidated Earnings Forecasts for Fiscal Year 2022, ending March 31, 2023
*Notes (1) Material changes in consolidated subsidiaries during the period (changes in specific subsidiaries accompanied by changes in scope of consolidation): No (2) Changes in accounting principles, accounting estimates and restatement () Changes in accounting principles in accordance with changes in accounting standard, etc.: Yes ② Other changes in accounting principles: No ③ Changes in accounting estimates: No ④ Restatement: No (3) Number of issued shares (common stock) () Number of issued shares (including treasury stock): March 31, 2022   1,089,055,218 shares ② Number of treasury stock: 9,299,365 shares March 31, 2022 ③ Average number of shares: FY2021 1,102,355,701 shares
*This report is not subject to audit procedures based on the Financial Instruments and Exchange Law. *Explanation for proper use of forecasts and other notes The above forecasts are based on the information which is presently available and the certain assumptions which  are considered to be reasonable. Actual results may differ from those forecasts depending on various future factors.
I   Consolidated Financial Information for Fiscal Year 2021 1. Consolidated Balance Sheet・ ・ 1 2. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income・・・・ 3 3. Consolidated Statement of Shareholders' Equity ・ 4. Consolidated Statement of Cash Flows 5. Note for Assumptions of Going Concern 6. Changes in Accounting Policies and Estimates and Modified Restatement ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 8 II  【Reference】Non-consolidated Financial Information of the main consolidated subsidiaries 1. Non-consolidated Financial Information of The Joyo Bank, Ltd. 2. Non-consolidated Financial Information of The Ashikaga Bank, Ltd.  ・・・・・・・・・・・・・・・・ 9 15 III  Financial Data for the Fiscal Year 2021 ended March 31, 2022 1. Income Status・ ・

IV  Status of Loans
28 1. Status of Disclosed Claims under the Financial Revitalization Law and Risk-monitored Loans ・ ・ 2. Allowance for Loan Losses ・ 29 3. Status of Coverage on Disclosed Claims under the Financial Revitalization Law ・ ・ ・ ・ ・ ・ ・ 30 4. Comparison between Self-assessment, Disclosed Claims under the Financial Revitalization Law and Risk-monitored Loans ・ · 31 5. Loan Portfolio, etc. 33 6. Outstanding Balance of Deposits and Loans【Non-consolidated 】 ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 36
I   Consolidated Financial Information for Fiscal Year 2021

2. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Not applicable. 6. Changes in Accounting Policies and Estimates and Modified Restatement
(Changes in Accounting Policies)
Accounting Standard for Fair Value Measurement Accounting Standard Board of Japan ("ASBJ") Statement No. 30, "Accounting Standard for Fair Value Measurement" (ASBJ, July 4, 2019; hereinafter referred to as "Accounting Standard for Fair Value Measurement") and related guidance have been applied from the beginning of the period ended March 31, 2022. In accordance with Paragraph 8 of the Accounting Standard for Fair Value Measurement, the fair value adjustment method applied to determine the fair value of derivatives was modified to use as much as possible observable inputs estimated by reference to derivatives and other instruments traded in the market. This modification was made due to the application of the Accounting Standard for Fair Value Measurement. In accordance with the transitional measures set forth in Paragraph 20 of the Accounting Standard for Fair Value Measurement, the cumulative effect of retroactively applying the new accounting policy prior to the beginning of the previous fiscal year was recognized as adjustments to retained earnings at the beginning of the  period ended March 31, 2022. As a result, "Retained earnings" decreased by ¥366 million, "Trading assets" decreased by ¥234 million, "Other assets" decreased by ¥476 million, "Trading liabilities" decreased by ¥25 million, "Other liabilities" decreased by ¥158 million, "Deferred tax assets" increased by ¥160 million, and   "Net assets per share" decreased by ¥0.32 at the beginning of the  period ended March 31, 2022. In accordance with transitional treatment stipulated in Item 19 of "Accounting standards for fair value measurement" and Item 44-2 of "Accounting standard for financial instrument," (ASBJ Statement No.10, July 4, 2019), new accounting policies have been applied from the beginning of the  period ended March 31, 2022. Due to the application, the measurement of the fair value of domestic stocks and investment trusts in available-for-sale securities are changed from the fair value method based on their average prices during the final month of fiscal year to the fair value method based on the market prices as of the consolidated balance sheet date. II 【Reference】 Non-consolidated Financial Information of the main consolidated subsidiaries 1.Non-consolidated Financial Information of The Joyo Bank, Ltd.
(1)Financial Highlights (from April 1, 2021 to  March 31, 2022)

(Note)  "Capital assets to total assets" represents ("Net assets"-"Equity warrants") /  "Total   assets" at the end of each period. The ratio above is not the one based on the regulation of Capital Adequacy Ratio.
2. Non-consolidated Financial Information of The Ashikaga Bank, Ltd.
(1)Financial Highlights (from April 1, 2021 to  March 31, 2022)

(Note)  "Capital assets to total assets" represents ("Net assets"-"Equity warrants") /  "Total   assets" at the end of each period. The ratio above is not the one based on the regulation of Capital Adequacy Ratio.

III Financial Data for the Fiscal Year 2021 ended March 31, 2022
1. Income Status

+(Fees and commissions income+Trust Fee一Fees and commissions expenses)+(Trading income一Trading expenses) +(Other business income — Other business expenses) (注)  達結粗利益＝(資金運用収益＝(資金調達費用−金銭の信託運用見合費用))＋(役務取引等収益＋信託報酬－役務取引等費用) + (特定取引収益一特定取引費用) + (その他業務収益一その他業務費用) Reference
= Consolidated gross profit — General and administrative expenses(excluding non-recurrent expense) — Transfer to general allowance for loan losses達結楽務純益＝連結組利益－営楽経費(除く臨時費用分)－一般貸倒引当金繰入額
1. Mebuki FG shall acquire all shares of Joyo Credit Co., Ltd. from The Joyo Bank, Ltd.( a wholly-owned subsidiary of Mebuki FG), and all shares of Ashigin Card Co., Ld. from The Ashikaga Bank, Ltd. (a wholly-owned subsidiary of Mebuki FG) through a dividend in kind, and that Joyo Credit and Ashigin Card merged and changed the surviving company's trade name to Mebuki Card Co., Ltd.(Mebuki Card) on April 1, 2021. 2. The Ashikaga Bank, Ltd. established the wholly-owned subsidiary named "Ashigin Money Design, Ltd "on July 15, 2021. (注)　当社は2022年3月期において、連結子会社の設立および再編等を以下のとおり実施しております。 1. 2021年4月1日付で株式会社常陽銀行が保有する株式会社常陽クレジットの全株式と,株式会社足利銀行が保有する株式会社あしぎんカードの全株式を現物配当により取得し、株式会社常陽クレジットを存続会社、株式会社あしぎんカードを消滅会社とする吸収合併をするとともに、同社商号を株式会社めふきカードに変更しております2.株式会社足利銀行は、2021年7月15日付で完全子会社「株式会社あしぎんマネーデザイン」を設立しました。
(注) 1.コア楽務純益＝楽務純益＋一般貸倒引当金線入額－国債等債券損益
(注) 1.コア楽務純益＝楽務純益＋一般貸倒引当金線入額－国債等債券損益
(注) 1.コア楽務純益＝楽務純益＋一般貸倒引当金線入額－国債等債券損益
2. Net Business Income

(注)職員数は、臨時雇員、嘱託及び出向職員を除いた平均人員を使用しております。
3. Interest Rate Spread

4. Return on Equity

2. A denominator (Net average assets) is calculated as follows: (Net assets excluding equity warrants at the beginning of the period + Net assets at the end of the period excluding equity warrants)/2. Capital assets = Net assets-Equity warrants-Non-controlling interests (注)1.めぶきフィナンシャルグループ(連結)の当期純利益ベースは、銀会社株主に帰属する当期純利益により算出しております。 2.分母の自己資本平均残高は、期首自己資本＋親末自己資本）÷2としております。自己資本＝純資産の部合計－新株予約権－非支配株主持分
5. Gains and Losses on Securities
(1)Gains (losses) on bonds (Government bonds, etc.)

6. Valuation Gains (Losses) on Securities
2. In addition to securities, figures in the above include the trust beneficial rights recognized as "Monetary claims bought". (法) 1. 「その他有価証券」については時価評価しておりますので、上記の表上は、貸借対照表計上額と取得価額との差額を計上しております。
2. 「有価証券」のほか、「買入金銭債権」中の債託受益権も含めております。

7. Capital Adequacy Ratio （Domestic standard）

Credit risk assets: Foundation internal rating-based approach Operational risk equivalent :  The Standardized  Approach 2. Other information on capital including the composition of capital disclosure is disclosed at the website of Mebuki Financial Group, Inc (https://www.mebuki- fg.co.jp/shareholder/ir_library/results/) . (注) 1.自己資本比率の算出にあたっては、以下の手法を採用しております。 •信用リスクアセット:基礎的内部格付手法・オペレーショナルリスク相当額:組利益配分手法2.自己資本の構成に関する事項につきましては、インターネット上の当社ホームページ（https://www.mebuki-fg.co.jp/shareholder/ ir_library/results/)に掲載しております。
IV Status of Loans
1. Status of Disclosed Claims under the Financial Revitalization Law and Risk-monitored Loans The Joyo Bank,Ltd. and The Ashikaga Bank.,Ltd. apply partial direct write-off method. The Loans to borrowers classified less than potentially bankrupt under self-assessment guideline recognized non-accrued income.部分直接便到:寒瓶しております。未収利息不計上基準:自己査定の結果、破綻懸念先以下に区分した債務者に対する未収利息は、全額を不計上としております。

2. Allowance for Loan Losses

金61引引動
3. Status of Coverage on Disclosed Claims under the Financial Revitalization Law
4 .Comparison between Self-assessment, Disclosed Claims under the Financial Revitalization Law and Risk-monitored Loans
2. "Normal Borrowers" includes loans to local government. 3. "Self- assessment" doesn't include the privately-placed bonds guaranteed by the bank, whereas "Disclosed Claims under the Financial Revitalization Law" and "Risk-monitored Loans" include the amount. (注1)記載金額は、億円未満を切り捨てて表示しています。 (注2)正常先には、地方公共団体への貸出金等を含んでおります。 (注3）自己査定には「自行保証付私募債」を含んでおりませんが、金融再生法開示債権及びリスク管理債権には「自行保証付私募債」を含んでおります。
2. "Normal Borrowers" includes loans to local government. 3. "Self- assessment" doesn't include the privately-placed bonds guaranteed by the bank, whereas "Disclosed Claims under the Financial Revitalization Law" and "Risk-monitored Loans" include the amount. (注1)記載金額は、億円未満を切り捨てて表示しています。 (注2)正常先には、地方公共団体への貸出金等を含んでおります。 （注3）自己査定には「自行保証付私募債」を含んでおりませんが、金融再生法開示債権及びリスク管理債権には「自行保証付私募債」を含んでおります。 5. Loan Portfolio, etc. (1) Classification of loans by type of industry
(2) Classification of Disclosed Claims under the Financial Revitalization Law and Risk-monitored Loans by type of industry

(3) Consumer loans / Loans to SMEs

6. Outstanding Balance of Deposits and Loans 【Non-consolidated】
Financial Results for FY2021 May 13, 2022
o Consolidated net income(*¹) was ¥42.9 bn (+¥6.4 bn YoY). o Core net business income('²), indicating the profitability in core business, increased by ¥14.8bn YoY due to improvement of security margins and increase of net fees and commissions reflecting the success of strengthened consulting, as well as cost reduction. o Credit related costs were ¥19.6bn, decreasing by ¥2.8bn YoY. ( *1 ) Attributable to owners of the parent ( *2 ) Excluding gains /losses on cancellation  of investment  trusts
Forecast for FY22

o We expect forecast for FY22 based on currently available information. o If the circumstances change, we will immediately revise the forecastas necessary. ( *3 ) Attributable to owners of the parent
( * )  Attributable to owners of the parent 【 Consolidation adjustment 】-¥3.0bn Adjustments related to securities,etc.
【Joyo + Ashikaga (Non-consolidated)】
Core net business income excluding gains/losses on cancellation of investment trusts increased  +¥14.8bn YoY mainly due to increase of security margins, net fees and commissions, and cost reduction. On the other hand, ordinary profit increased + ¥ 4.5bn YoY due to flexible securities' operations based on the market conditions and the outlook for the future (gains/losses on securities - ¥ 12.4bn) FY21 (*1) Gains/losses on cancellation of investment trusts +Gains/losses on bond transactions +Gains/losses related to stocks FY20 (*2)  Including (-)¥ 1.5bn of costs related to liability for retirement benefits, ¥ 0.9bn of gains on equity options etc.
Since the founding of Mebuki FG in FY2016, core net business income increased by ￥22.7bn compared to FY2016, due to ensuring synergy effect through the integration and the progression of structural reform. Core Net Business Income* (Joyo+Ashikaga) (丸bn) ＜Factors of Change ＞
( * ) Excluding gains/losses on cancellation  of investment  trusts
Amount of loans increased by ¥30.6bn YoY (+0.2% annualized). Loans to individual customers increased due to increase  mainly of housing loans and unsecured loans by ¥120.5bn YoY (+2.4% annualized). Loans to corporate customers decreased due to the peaking out of COVID-19 related financing by ¥22.2bn YoY (-0.4% annualized). Term-end Balance (Joyo+Ashikaga) (¥bn) (¥bn)
(FYE18) ¥399.4bn (FYE19) ¥ 519.8bn (FYE20) ¥ 521.5bn (FYE21) ¥ 586.7bn
Loans to individual customers increased driven by housing loans (+¥149.1bn) and car loans (+¥8.1bn). Loans to corporate customers decreased due to the peaking out of COVID-19 related financing. 【Individual】Housing Related Loans 【 Individual】Unsecured Loans (犬bn ) ( ≠ bn ) 【Corporate】Term-end Balance by Company Size (天bn ) 【Corporate】Term-end Balance by Area (天bn ) (+1.8%) (+1.1) (+2.5%) (+0.2) ■ Educational Loans (+4.6%) (+2.0) ■ Tokyo (-0.6%) (-12.4) ■ Local (-0.2%) (-9.7) (+12.8%) (+8.1) 7 Average Yield of  Loans / Net Interest Income Difference of interests between loans and deposits decreased by ¥0.9bn YoY due to decrease of average yield on loans. However, the decline of domestic loans' yield improved from 3.5bp to 2.1bp. Securities' income decreased by ¥10.7bn YoY due to increase of profit dividends to from an increase in securities balance, and decrease of market borrowings. Average Yield on Loans(Joyo+Ashikaga)
Change of Interest Income(Joyo+Ashikaga)
(￥ bn) (Domestic and Overseas) * Not including borrow ing from special account of MoF * Not including borrowing from special account of MoF * Figures in parentheses are changes on a year on year basis
Amount of deposits increased by ¥599.8bn YoY (+3.6% annualized). Deposits from all customers remains in an increasing trend. Term-end Balance (Joyo+Ashikaga) (¥bn) Year on Year Changes (¥bn)
Amount of customer assets under custody increased by ¥177.6bn YoY (+8.7% annualized) and related fees increased by ¥1.96bn YoY (+13.1% annualized). We have enhanced to maintain contact points with customers by using non-face-to-face channel and strengthen the collaboration between the two banks and Mebuki Securities in our group. Balance (Bank Total + Mebuki Securities) Commissions (Bank Total + Mebuki Securities)
Fees from Corporate Customers
Fees from corporate customers increased by ¥1.92 bn YoY (+20.4% annualized). Credit related fees increased by ¥0.52 bn YoY due to strenghtening derivatives trading proposals that take into account market trends. Consulting related fees increased by ¥1.40bn YoY due to strengthening various business support for business matching for expanding supply chain, digitalization and human resources introduction as well as business planning and finances. (¥bn)
【Business Matching, Support for Business Planning, etc.】 Support for expanding sales channels and suppliers ● • Introduction of core systems for sales and production management as well as systems for efficiency of back office operations such as personnel and attendance management ● Support  for human resources introduction to meet customers’ employment needs for “senior management” or “professionals” Support for business planning, financial planning and applying for public loan programs, etc. ● 11
Unrealized valuation gains/losses on securities decreased YoY since domestics and overseas long- term interest rates rose. We continue to reduce strategic shareholdings. We reduced ¥21.2bn / 24 issues in FY21. Balance(Carrying amount) (Mebuki FG) (¥bn) Unrealized valuation gains/losses on available for sales securities (Mebuki FG) (¥bn) ■ Investment trusts, etc. ■ Stocks ■ Foreign bonds □ Domestic bonds (*1) We use derivatives to hedge fluctuations in the fair value of securities. Although unrealized valuation gains/losses on fixed bonds decreased due to rising interest rate, that on derivatives improved. ¥3.3bn (*1) (Reference) Deferred gains (losses) on hedges ¥0bn −¥0.8bn ¥1.5bn FYE18 Strategic Shareholdings  (¥bn) Gains and losses on securities ■ Gains/losses on cancellation of investment trusts ■ Gains/losses related to stocks → Gains/losses on bondtransactions Gains and losses on sales (*2)  The ratio of balance sheet amounts of strategic shareholdings to consolidated net assets (based on Securities Report)    (*3) gains/fosses on  stocks + bond transacti 12
Expenses / OHR
Total expenses decreased, mainly in personnel expenses, due to the progression of efficiency in branch offices' operations and rationalization of head office and group companies by acceleration of the structural reform. OHR, indicator of efficiency, declined by about 5 percentage points YoY and improved significantly. (¥bn) ＜Factors of Change ＞
( *1 ) Excluding gains /losses on cancellation  of investment  trusts ( *2 ) Excluding gains /losses on cancellation  of investment  trusts  and system integration expenses
Considering the impact of the COVID-19 pandemic and the situation in Ukraine, credit related costs were preventively recognized by transfer to specific allowance for loan losses, etc. Credit related costs in FY22 are expected to be ¥11.0bn, a decrease of ¥8.6bn YoY. Change of Credit Related Costs ( ¥ bn) Breakdown on Credit Related Costs ( ¥ bn)
Change of terms and conditions of loans due to COVID-19 (Cumulative total until Mar.2022)
【Annual】FY09～ 14 Status of Non-performing Loans and Delinquent Loans Amount of non-performing loans based on financial revitalization law and ratio rose due to the preventive reserve carefully considering the impact of COVID-19 and the situation in Ukraine. Although number of delinquent loans has remained flat and bankruptcies have remained stable, we continue to monitor the impact of COVID-19 and the situation in Ukraine. Non-performing Loans (Financial Revitalization Law -FG consolidated) (¥bn) Status of Delinquent Loans to Businesses (¥bn) 【Reference】Status of Bankruptcy Number of bankruptcies(Total liabilities amounting to 10 million  yen or more) ～by Tokyo Chamber of Commerce <Tochigi(*1)>
In FY21, year-end dividends of ¥5.5 (annual dividends of ¥11.0) per share have been decided. We schedule annual dividends of ¥11.0  in FY22 taking into account stable dividends.
Shareholder Returns  Policy
● We will target a Total Return Ratio( ¹ ) of 30% or more while taking into account both the maintenance of solid capital levels for future growth and the appropriate distribution of profits to our shareholders. We will continue to consider the dividend level. (*1) Total Return Ratio =  (Total amount of dividends + Total amount of acquisition  of own shares)／Net income Dividends, Shareholder Returns
Capital Adequacy Ratio (*2) As of March.31,2020, Ashikaga Bank started to calculate risk-weighted asset according to foundation internal rating-based  approach (FIRB)
Abridged Edition Long-Term Vision 2030 Third Medium-Term Group Business Plan (Plan Period:   April 1, 2022 ～  March 31, 2025)
1   Long-Term Vision
o In order to achieve sustainable growth together with local communities amidst a drastically changing business environment, we have formulated a long-term vision targeting the year 2030 as a major direction for the Group to aim for. ● “Long-Term Vision 2030” is based on our desire to “continue to create new value by working together with local stakeholders to solve their various issues” and to “contribute to the realization of sustainable local communities through value creation, and remain an essential presence in local communities." Group Philosophy Together with local communities, we will continue to build a more prosperous future by providing high-quality comprehensive financial services. Formulated considering external environment factors recognized while formulating the long-term vision Sustainability Policy 【Materiality】 ● Revitalization of regional economy and society ● Response to climate change and environmental conservation ● Promoting digitalization ● Initiatives for an aging society ● Promoting diversity 【Numerical Target】 ●   Sustainable Finance ¥ 3,000bn (cumulative FY2021～FY2030) [o/w, environmental field ¥2,000bn] ●  CO2  emission reduction target Net zero in FY2030 【Vision】 A Value Creation Group Wor Together with Local Comm Vision and target level in 2030 based on external environment. and future prospect 【Target Level】 Consolidated Fee Income Ratio(*¹):  50% or more Consolidated Ordinary Profit : ￥100 bn or more Third Medium-Term Group Business Plan 【Plan Period】 April 1, 2022 ～  March 31, 2025 Three-year plan (Phase 1) for realizing our vision and target level in 2030 【Position】 Period for Taking on Challenges for Sustainable Growth (*1) Consolidated Fee Income Ratio = Consolidated fee income*² ÷ Income from customers*³ (*2) Consolidated fee income=  Fee from customers of Banks + Gross profit from customers of other group companies 19 Income from customers=  Difference of interests between loans and deposits+ Consolidated fee income  ※excluding securities'  income (*3)
2  Approach to Realization of Long-Term Vision
● ● To realize our long-term vision, we will strengthen our core business areas such as traditional banking and comprehensive financial services and take effort to expand our business areas by leveraging our strengths. We will create new value by taking on challenges to solve regional issues beyond the framework of conventional financial services and returning the expertise obtained through these initiatives to our core business. Strengthen core business  / Develop new business areas by leveraging our strengths 【New Business Areas】 Take on the challenge to solve regional issues, going beyond the conventional framework ● We will contribute to realize sustainable local communities by taking on challenges to solve regional issues going beyond the conventional framework. ● We will return the expertise obtained through our initiatives in new businesses to core business, which will lead to the growth of our Group and local communities. Cultivating new customers Deepening relationships with existing customers 【Comprehensive Financial Services Area】 Strengthen our consulting and group functions and contribute to solve more customers’ issues We will expand the range of services to solve financial issues by strengthening consulting and group companies' functions. We will contribute to solve diverse financial issues of more customers by collaborating with our group companies Expanding business Return the expertise cultivated in new business areas to core business
● o The Third Medium-Term Group Business Plan is positioned to be a “Period for Taking on Challenges for Sustainable Growth.” While strengthening our management structure by innovating traditional banking services and deepening comprehensive financial services, we will take effort to sow and nurture in “New Business Areas” and aim to contribute to local communities beyond the framework of conventional financial services. Third Medium-Term Group Business Plan   ( FY2022～FY2024 ) “Period for Taking on Challenges for Sustainable Growth”, ( 4 th medium-term  group plan) Period  for accelerating evolution Future ( ~ 2030 ) ( 5 th medium-term group plan) Period for realizing long-term
Long-Term Vision 2030 Basic 1  .  Pursue a business model to support local communities Strategies 2  . Build a sustainable management base 3  . Develop human resources and promote active participation Consolidated net income ￥52.0 bn or more (Attributable to owners of the parent) Business Objectives Core OHR (bank total)*¹ Less than 58% Consolidated ROE 5.5% or more (based on shareholders' equity) Expanding new businesses (New Business Areas) Sowing and nurturing new businesses Expansion of business area and profit Consolidated Fee Income Ratio 50 % or more Consolidated Ordinary Profit ¥100.0 bn or more core businesses A Value Creation Group Working Together with Local Communities Developing them into Increase customer usage (Comprehensive Financial Services Area) (Traditional Banking Services Area) Thorough Efficiency Increasing added value by providing
* 1  Core OHR = Expenses +Core gross business profit (Gross business profit * ² -gainflosses on bond transactions) * 2 Excluding gains-loses on cancellation of  investment trusts and reminestion from "Special Deposit Facility to emance the resilence of the regional financial system" and response to COVID-19 " by Bank of Japan Expansion of Financial Products/Services 4  Basic Strategies of the Third Medium-Term Group Business Plan ● In the Third Medium-Term Business Plan, we will pursue a business model to support local communities aimed at contributing to them through new value creation. ● Toward new value creation, we will work to build a sustainable management base by promoting Digital
Value Creation Process Initiatives for Sustainability
Based on the corporate philosophy of the Group, Mebuki Financial Group will provide high-quality, comprehensive financial services by taking advantage of its wide-area network, solid  customer base and other strengths, while contributing to the sustainable growih of local communities through improving the Group's corporate value and creating value for staƙeholders. External ● Progress of digitalization and technology    ● Changes in lifestyle and value ● Aging and Declining population ● Industrial and work structure changes environment ● Shift to decarbonized and recycling-oriented society Input Financial capital Human capital Intellectual capital Social capital Group Philosophy Our Vision Comprehensiv e financial services area Change the way of providing services and increase their value • Loans • Settlement / Money Transfers Management base that supports our business Corporate Governance Risk Management |Contributing to achievement of SDGs
Business Activities
Together with local communities, we will continue to ɓuild a more prosperous future by providing high-quality, comprehensive financial services. Building the region's future as a comprehensive financial services group Realize prosperous living Support for sustainable corporate growth • Support for decarbonization / SDGs in local regions • Contribute to regional revitalization / urban development • Consulting •  Business succession / M&A • Trust / Inheritance / Asset Building • Leasing / Securities / Global expansion • Deposits Strengthen our consulting and group functions and contribute to solve more customers' issues Take on the challenge to solve regional issues, going beyond the conventional framework • Convenient and secure financial services • Revitalization of regional economy • Solving issues through consulting services • Safe, secure and prosperous life • Creating a recycling-oriented society and reducing environmental impact Prosperous imagination and problem- solving skills Services that continue to be trusted
Shareholders
• Corporate value improvement • Stable and sustained shareholder return • Transparent information disclosure
Employees
• Promotion of diversity • Pleasant working environment where employees can grow • Implementing work-life balance Explanation of each capital
Financial capital
• Sufficient capital • Sound assets • Stable funding
Human capital
• Diverse human resources • Enhancing  training programs and  specialized human resources •  Human resources rooted in local communities
Intellectual capital
• Brand strength and history Comprehensive capabilities with know-how in the Group • Advanced risk management
Social capital
• Wide-area networks based in Ibaraki and Tochigi Prefectures • Solid customer base • Network with domestic and international partners 24
Outcome
Local Communities and Customers Compliance Internal Audit
Sustainability Policy
Mebuki Financial Group has formulated the Group Sustainability Policy in order to reinforce further initiatives for the achievement of our long-term vision, in conjunction with the start of the 3rd Medium-Term Group Business Plan. In addition, we have formulated independent policies to clarify policies regarding “Environment”, “Human Rights” and "Diversity". Long-Term Vision 2030 “A Value Creation Group Working Together with Local Communities”
Mebuki Financial Group Sustainability Policy
Based on the group philosophy “Together with local communities, we will continue to build a more prosperous future by providing high-quality comprehensive financial services”, Mebuki Financial Group will support solving issues in our regions, while contributing to the achievement of sustainable growth of local communities as well as the improvement of our corporate value. Group Environmental Policy Group Human Rights Policy Group Diversity Policy
Mebuki Financial Group
Supervision Board of Directors Sustainability Co Chairman : President and Director Members : All Executive Directors, Executive Officers and others Purpose : To contribute to the achievement of SDGs, the committee  makes decisions on important business execution regarding both sustainable growth of the Group and the resolution of environmental/ social issues in local regions and analyze, evaluate, improve matters related to sustainability promotion. Each Group company
Mebuki Financial Group has established key issues (materiality) to be focused on in order to contribute to the realization of sustainable local communities. Going forward, based on these five (5) key issues, we will promote initiatives to solve regional issues.
We will work with all of our stakeholders, including customers, shareholders, employees and business partners, to create a more prosperous regional society and aim to keep growing together with our local communities.
Main initiatives as a corporate citizen

Response to climate change
Contribution to decarbonized society Initiatives for TCFD recommendation (enhancing internal control system including scenario analysis of climate change and related disclosures) Initiatives to reduce greenhouse gas emission ● Forest conservation activities, subsidies and donations to environment conservation groups
Promotion of diversity
Increase active participation of female employees and opportunities for promotion to higher level positions Develop and secure specialized human resources, active participation of senior human resources Investment in people ● Work-style reform / promote work-life balance ● Respect for human rights
Build a sustainable system /
Develop and secure human resources in local regions
Promotion of digital transformation (DX) Innovation of business operations ● Support for financial education Joint support with local governments for recruiting ● Support for training young managers and successors G
Advanced corporate management
● Strengthen and improve corporate governance ● Shut out relations with anti-social forces and prevent money-laundering and financing of terrorism for a peaceful and just society Main initiatives contributing to SDGs through the Group’s businesses
Response to climate change
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Promotion of sustainability transformation (SX)
Collaborative creation with our customers For acceleration and expansion of SDGs, we will provide various products/services to raise customers' sense of participation in SDGs from the viewpoint of “ activities to support the achievement of SDGs' goals in partnership with customers"
Contributions to regional sustainable growth
Collaboration with local regions / regional companies and regional revitalization by making the most of the Group's wide-area network Solving regional issues by working with local governments Financial support by providing sustainability linked loans to solve customers' social issues Expanding various services related to financial gerontology Expanding non-financial services responding to problems for the elderly Environmental consideration and support for the spread of renewable energy through investment to green loans / bonds and environment-friendly private placement bonds, etc. Support for promoting environmental businesses
Major initiatives through the Group’s business
Discovering and creating new business
●  For the development of the regional economy, we invite people in the community to offer innovative and creative business plans, for which we provide support toward commercialization and  growth. ●  In FY21, we awarded 27 business plans. Business Award ceremony
Initiatives to revitalize the regional economy
●  By making the most of the Group's wide-area  network, Joyo Bank and Ashikaga Bank jointly hold  various business conferences related to agriculture, food and manufacturing to help develop a market  and expand economic exchange through business matching, etc. among  clients.
Initiatives based on the knowledge on gerontology
●  Toward the realization of the communities where the  elderly can continuously live in comfort, we are expanding our services utilizing the knowledge on  gerontology. (Asset management, asset succession, etc.) Identifying management issues and  providing solutions for regional companies ● To support the efforts to solve management issues,  we provide optimal solutions through consulting. (Business succession, SDGs consulting, etc.) Supporting the growth and enhanced  productivity of
regional companies
● We provide support for appropriate personnel  placement as well as for review of personnel  systems to solve issues. In addition, we offer management issue solutions utilizing personnel  working side jobs.
Contributing to communities through private  placement
bonds with donation scheme ●  A portion of the commission received when issuing  private placement bonds for customers is used for  donating goods to schools or organizations engaged  in initiatives for SDGs of the customer’s choice.
Initiatives for climate change and environment conservation Initiatives for promoting renewable energy  business Initiatives to reduce greenhouse gas emissions ● We proactively support our clients’ efforts toward  the realization of a carbon-free society by providing  financial support for  renewable energy businesses. ● To support environment conservation activities, we continue to offer subsidies and donations to  organizations and groups working on environment conservation. Subsidies and donations to environment  conservation groups ●  Setting a reduction goal of CO2 emissions, the entire  Group strives to reduce CO2 emissions through  measures such as establishing environment-friendly branches and integrating the mail carrying system  between offices and branches.
Environment conservation activities
● In addition to tree-planting activities and promotion  of environmental education, we make efforts to  conserve the environment through reduced paper use by promoting our  smartphone app and online passbook. (Tree planting, saving paper resources by promoting online passbook, etc.) Fuel-efficient business cars
Initiatives for diversity
Promotion of diversity
● We have established “Diversity Promotion Office” as an organization to supervise the initiatives for promoting diversity to create a working environment where women and other diverse human resources can become more active, and to improve organizational capabilities. ● We are conducting “ Mebuki Women's Class” in order to foster women leaders and proactively promoting capable and motivated women employees to assistant manager positions or higher.
Initiatives for LGBT communities
● We offer housing loans and house renovation loans, accepting same-sex partners as spouses. We  include same-sex partners as loan recipients in the  cases of joint liability or combining income at the time  of borrowing, as we aim for a society where people  can live by their own values, with their sexual  orientation and gender identity being respected. 29
In March 2021, we declared support for the TCFD Recommendations and strengthened our response to climate change. Revising the target for CO2 emissions reduction upwards, we will accelerate to realize a decarbonized society and contribute to regional sustainable growth.
CO2 Emissions Reduction
● We have set the target for CO2 emission reduction in FY2030 to "Net-zero". ● We have achieved a 25.0% reduction of CO2  emissions in FY2021 (*1), compared with FY2013. * 1  Total CO2 emissions of Scope 1 + Scope 2 of Joyo Bank + Ashikaga Bank, calculated  based  on the reporting standards stipulated in the Energy Efficiency Act. <CO2 emissions of the Group> CO2 emissions (Bank Total) ktCO2
Sustainable Finance
Definition of “Sustainable Finance” “Finance to support customers’ activities aiming to realize a sustainable society through solving environmental and social issues”, as referenced in related external standards (the Green Loan Principles, the Green Bond Principles, the Social Bond Principles, etc.)
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We will continue to implement proactive support for customers' efforts seeking the achievement of a sustainable environment and society, by providing renewable energy-related loans for reducing climate change risks and through our environment conservation activities. Further, we will appropriately act for reducing and avoiding negative impacts based on the “Environmentally and Socially Friendly Investments and Loans Policy”.
Major Initiatives for Environment   Conservation
<Initiatives for promoting renewable energy business >
realization of a carbon-free society by providing financial support for renewable energy business projects such as solar power generation, biomass power generation, and  wind power generation. <Subsidies for environment conservation groups, etc.>
● Utilizing the mechanism of charitable trust, we grant subsidies to organizations and groups working on  environment conservation. <Subsidies through charitable trust (Cumulative total, as of end of March, 2022)>
<Environment conservation activities> ● We have conducted tree-planting  ● and other activities in  order to pass our communities' beautiful and sound  forests on to the next generation. We are also making efforts to protect limited natural resources by promoting the use of smartphone apps  and online passbooks in efforts to save paper. <Support for the 21st Century Financial Behavior Principles> Supporting the 21st Century  Financial Behavior Principles, which  was adopted in December 2011 in  order for financial institutions in the banking, securities, and insurance industries to work together on expanding environmental finance initiatives, we make efforts  toward the formation of a sustainable society.
Environmentally and Socially Friendly Investments
● Concerning investments and loans to particular sectors that could cause great impact on the environment and society,  we will appropriately act based on the “Environmentally and Socially Friendly Investments and Loans Policy". 1. Coal-fired power plants In principle, we will not engage in investments and loans for newly established coal-fired power plants. (However, exceptions may be considered where taking into account background or characteristics of each project such as overall power generation efficiency, impacts on environment and local communities, etc., based on international guidelines.)
2. Deforestation
Investment decisions for deforestation operations will be made after careful consideration of the status of acquisition of international certifications by FSC or PEFC, environmental considerations and conflicts with local communities. 3. Palm oil plantation development Investment decisions for palm oil plantation development will be made after careful consideration of the status of acquisition of international certifications by RSPO, environmental considerations, and conflicts with local communities. 4. Cluster munitions manufacturing In view of the inhumane nature of cluster munitions, we prohibit investments and loans for businesses that manufacture cluster munitions, regardless of the use of the funds. 5. Human rights violations, forced labor, etc. We prohibit investments and loans for businesses that violate the principles of international human rights standards such as child labor and forced labor. 【Financial Data for FY21】
【Data】 Breakdown of Banking subsidiaries

【Data】 Breakdown of Banking subsidiaries

【Data】 Breakdown of Banking subsidiaries

【Data】 Breakdown of Banking subsidiaries

FY21
Inquiries Mebuki Financial Group, Inc.   Corporate Planning Department +81-29-300-2600 ir@mebuki-fg.co.jp URL https://www.mebuki-fg.co.jp/ This document has been prepared for information purposes only and does not form part of a solicitation to sell or purchase any securities. Information contained herein may be changed or revised without prior notice. This document may contain forward-looking statements as to future results of operations. No forward-looking statement can be guaranteed and actual results of operations may differ from those projected. 38