Financial Results for Fiscal Year 2016, ended March 31, 2017 Tokyo (code: 7167) http://www.mebuki-fg.co.jp/ Kazuyoshi Terakado, President Kiyoshi Nozaki, General Manager of Corporate Planning Dept. June 28, 2017 (scheduled) June 5, 2017 (scheduled) June 29, 2017 (scheduled) Scheduled (for investors) Filing date of Financial Statements: IR Conference: (Japanese yen amounts of less than 1 million and the first decimal place have been rounded down.) 1. Financial Highlights (from April 1, 2016 to March 31, 2017)
(Note)  Since net income per share does not decrease as a result of dilution, diluted net income per share for FY2015 is not shown.
(Note)  "Capital assets to total assets" represents ("Net assets"-"Equity warrants"-"Non-controlling interests") /  "Total  assets" at the end of each period. The ratio above is not the one based on the regulation of Capital Adequacy Ratio.
120-year anniversary of a wholly owned subsidiary, The Ashikaga Bank, Ltd. 2. Year-end dividend for FY2016 includes a commemorative cash dividend of 1.00 per share  for the business integration of The Joyo Bank, Ltd.  and Ashikaga Holdings Co., Ltd. 3. Cash dividends of End of 2Q FY2016 represent actual dividends paid by Ashikaga Holdings Co.,Ltd..
3. Consolidated Earnings Forecasts for Fiscal Year 2017, ending March 31, 2018

*Notes (1) Material changes in consolidated subsidiaries during the period (changes in specific subsidiaries accompanied by changes in scope of consolidation): Yes The Joyo Bank, Ltd. Included: 1 company Excluded: (2) Changes in accounting principles, accounting estimates and restatement Changes in accounting principles in accordance with changes in accounting standard, etc.:   No Other changes in accounting principles: No Changes in accounting estimates: No Restatement: No (3) Number of issued shares (common stock) Number of issued shares (including treasury stock): March 31, 2017 1,179,055,218 shares March 31, 2016 333,250,000 shares Number of treasury stock: 1,303,564 shares March 31, 2016 March 31, 2017 shares l Average number of shares: FY2016 1,010,667,873 shares FY2015 333,250,000 shares (Note)  From April 1,2016 to September 30,2016, the average number of shares is provided by multiplying The Joyo Bank, Ltd. 's average number of shares and the share exchange ratio. From October 1,2016 to March 31,2017, the average number of shares is calculated by the actual figures of Mebuki Financial Group, Inc. This report is outside the scope of the audit procedure based on the Financial Instrument and Exchange Law. Notes for using forecasts information ,etc The above forecasts are based on information, which is presently available and certain assumptions which are considered to be reasonable. Actual results may differ from those forecasts depending on various future factors. Mebuki Financial Group, Inc. (Mebuki) conducted a share exchange on October 1, 2016 under which Ashikaga Holdings. Co., Ltd. (AHD) became the wholly owing parent company and The Joyo Bank, Ltd. (Joyo) became the wholly owned subsidiary. Based on the Accounting Standard for Business Combinations, this share exchange is a reverse acquisition wherein AHD is considered to be the acquired company and Joyo to be the acquiring company. Therefore, the consolidated assets and liabilities of AHD were transferred to the consolidated balance sheets of Joyo at the fair value. Accordingly.consolidated financial results for FY2016 (from April 1, 2016 to March 31, 2017) includes those of Joyo for the period from April 1, 2016 to September 30, 2016, and those of Mebuki for the period from October 1, 2016  to March 31, 2017. There is no continuity of financial statements between the prior fiscal year and the current fiscal year. Therefore, the year-on-year changes are not disclosed.
2. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
1.Non-consolidated Financial Information of The Joyo Bank, Ltd. (1)Financial Highlights (from April 1, 2016 to March 31, 2017) (%: Changes from the corresponding period of the previous fiscal year)
(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, 2016 to March 31, 2017) (%: Changes from the corresponding period of the previous fiscal year)
(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. Mebuki Financial Group. Inc. ("Mebuki") and The Joyo Bank, Ltd. ("Joyo") executed the share exchange which made Mebuki a wholly-owning company and Joyo a wholly-owned company on October 1, 2016. The share exchange corresponds to a reverse acquisition under the Accounting Standard for Business Combination, and the purchase method under which Joyo is an acquiring company is applied to the transaction. Due to a gain on negative goodwill from the business integration,  119.2 billion yen of extraordinary income is recognized. Consolidated financial results for Fy2016 are composed of the consolidated results of Joyo from April 1, 2016 to September 30, 2016 and of Mebuki from October 1, 2016 to March 31, 2017. 3. Since the financial results have substantially changed compared with those of FY2015 due to the business combination on Octber 1, 2016, full-year figures of the previous fiscal year are not shown. ( ) 1 2 28 10 1 28 4 10 3 10 28 4 1 1,192 28 28
= Consolidated gross profit General and administrative expenses(excluding non-recurrent expense) Transfer to general allowance for loan losses 2. Since the financial results have substantially changed compared with those of FY2015 due to the business combination on Octber 1, 2016, figures of the previous fiscal year are not shown. 2 28 10 1
( March 2016 are not shown. 27 28 10 1
2. Credit related costs  =Net transfer to general allowance for loan losses+ Disposal of non-performing loans
2. Credit related costs  =Net transfer to general allowance for loan losses+ Disposal of non-performing loans
2. Net Business Income

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. 3. Since the financial results have substantially changed compared with those of FY2015 due to the business combination on Octber 1, 2016, figures of the corresponding period and full-year figures of the previous fiscal year are not shown.
28 10 1
）（
27
) ÷ 2
5. Gains and Losses on Securities
(1)Gains (losses) on bonds  Government bonds, etc.

(2)Gains (losses) on stocks, etc.

6
Valuation Gains (Losses) on Securities

2. In addition to securities, figures in the above include the trsut beneficial rights recognized as "Monetary claims bought". 3. Since the financial results have substantially changed compared with those of FY2015 due to the business combination on Octber 1, 2016, figures as of March 31, 2016 are n ( )

7. Capital Adequacy Ratio    Domestic standard

( figures as of September 30, 2016 and March 31, 2016 are not shown. 28 10 1 28   3 28   9
Mebuki Financial Group, Inc., The Joyo Bank, Ltd. and the Ashikaga Bank, Ltd. calculated each operational risk equivalent according to TSA (the standardized approach). Other information on capital including the composition of capital disclosure is disclosed at the website ot Mebuki Financial Group. Inc http://www.mebuki-fg.co.jp/shareholder/ir_library/results/ _ http://vwwmebuki-fgco.jp/shareholder/ir_jibrary/results/
Status of Loans
1. 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.
Mebuki Financial Group, Inc. (Consolidated basis)

figures as of September 30, 2016 and March 31, 2016 are not shown. ( 28 10 1 28   9 28   3
The Joyo Bank, Ltd. (Non-consolidated basis)

The Ashikaga Bank, Ltd. (Non-consolidated basis)

2. Allowance for Loan Losses

figures as of September 30, 2016 and March 31, 2016 are not shown. ( 28 10 1 28   9 28   3

3. Ratio to Reserve for Total Risk-monitored Loans

(Note)  Since the financial results have substantially changed compared with those of FY2015 due to the business combination on Octber 1,2016, figures as of September 30, 2016 and March 31, 2016 are not shown. 28 9 28   3 ( 38 10 1

4. Disclosed Claims under the Financial Revitalization Law

figures as of September 30, 2016 and March 31, 2016 are not shown. 28 9 88 10 1 28   3 (
5. Status of Coverage on Disclosed Claims under the Financial Revitalization Law Reference   Breakdown of Disclosed claims under the Financial Revitalization Law   As of Mar 31, 2017
Reference   Breakdown of Disclosed claims under the Financial Revitalization Law   As of Mar 31, 2017

6.Comparision between Self-assessment, Disclosed Claims under the Financial

2. "Normal Borrowers" includes loans to local government. 3. "Self- assessment" dosen't include the privately-placed bonds guaranteed by the bank, whereas "Disclosed Claims under the Financial Revitalization Law" includes the amount. 1 2 3
3. "Self- assessment" dosen't include the privately-placed bonds guaranteed by the bank, whereas "Disclosed Claims under the Financial Revitalization Law" includes the amount. 1 2 3
7. Loan Portfolio, etc
(1) Classification of loans by type of industry

(3) Consumer loans / Loans to SMEs

8. Outstanding Balance of Deposits and Loans
Non-consolidated
Financial Results for FY2016 May 12, 2017 (This page is intentionally left blank) 1 Highlights 3
Financial Results for FY2016
※Unless otherwise provided herein, the figures shown are those of each bank on a non-consolidated basis. 4 ◆ Main Points of FY2016 Financial Results ◆ Core Gross Business Profit 5 ◆ Key Change Factors in Core Gross Business Profit 6 ◆ Loans and Deposits (Average Balance / Average Yield) 7 ♦ Loans (1)(2)(3) 8-10 ◆ Deposits 11 ◆ Financial Assets under Custody(1)(2)  12-13 ◆ Securities 14 ◆ Expenses / OHR 15 ◆ Credit Related Costs / Non-performing Loans 16 ◆ [Reference] Gain on Negative Goodwill 17
Forecast for FY2017
◆  Forecast for FY2017 18 ◆  Capital Adequacy Ratio / Rating 19 ◆  Shareholder Return 20 Progress of the Initiatives and Meāsures of the Integration ◆  Day 180 Plan (Results etc.) 21-26 ◆  Step-up 180 Plan 27-28
Financial Results for FY2016  (Results for 1H of Joyo Bank + 2H of Mebuki)
◎  Consolidated net income* of Mebuki surpassed the forecast mainly because gain on negative goodwill of ¥119.2 bn associated with the business integration exceeded the initial estimate. <Mebuki> Consolidated net income ¥158.4 bn / Forecast ￥155.0 bn ＊ attributable to owners of the parent ◎  The business integration synergy for the second half of FY2016 was ¥0.9 bn.
Earnings Forecast for FY2017 (Changes : year-on-year basis)
◎ Consolidated ordinary profit and consolidated net income* are forecasted to increase by ¥ 6.2 bn to ¥58.5 bn and decrease by ¥118.4 bn to ¥40.0 bn respectively.   * attributable to owners of the parent Non-consolidated net income    <Joyo> ¥23. 0bn（-¥1.4 bn）   <Ashikaga> ¥21.0 bn（-¥5.4 bn） ◎  Synergy effect of the business integration of ¥2.7 bn is expected for FY2017.
Dividend
◎  Year-end dividend for FY2016 is ¥6.50 per share, including commemorative dividend (¥1.00) for the business integration of the Joyo Bank and Ashikaga Holdings. ◎  For FY2016, in line with an earnings distribution policy*, annual dividend projection is ¥11.00, interim dividend and year-end dividend of which are ¥5.50 each. *  Aim to continue the stable dividend returns while taking into account both the maintenance of solid capital levels for the future growth and the appropriate distribution of profits to our shareholders.グ
◇ Consolidated net income* of Mebuki surpassed the forecast mainly because gain on negative goodwill associated with the business integration, which is ¥119.2 bn, exceeded the initial estimate. *  attributable to owners of the parent ●Mebuki FG (JPY Bn)
• Mebuki FG’s consolidated financial results for FY2016 include those of Joyo Bank for the first half and those of Mebuki for the second half. • Gain on negative goodwill due to the business integration amounting to ¥119.2bn was recorded as extraordinary income (refer to p.17). • The business integration synergy for FY2016 is ¥0.9 bn lift. Synergy effect of the business integration of ¥2.7 bn is expected for FY2017. <Reference> Results of Joyo and Ashikaga   (JPYBn)
4 Core Gross Business Profit (Gross Business Profit excluding Gains/Losses on Bond Transaction) ◇ Core gross business profit decreased by ¥5.4 bn, net interest income and net fees and commissions of which decreased by ¥4.4 bn and ¥2.7 bn from the previous year respectively. ◇ The drop in the profit is mainly attributable to a decline in loan yields and a decrease in fees related to financial assets under custody.
Key Change Factors (Joyo + Ashikaga) Net Interest Income, and Net Fees and Commissions (by Banking Subsidiary) ●Joyo + Ashikaga (JPY Bn) ●Gains on Cancellation of Private Offering Investment Trusts among Interests and Dividends on Securities (JPY Bn)

) Ashikaga

(JPY Bn)
6 *  Unless otherwise provided herein, the figures shown are the sums of domestic and international loans and deposits
Average Yields of Loans and Deposits OJoyo
●Ashikaga
—�— Average yield on deposits (2) 7
◇ Loans to individual customers increased by ¥247.2 bn (+6.1%) and housing related increased by ¥241.8 bn from the previous year (refer to p.9). ◇ Loans to corporate customers decreased by ¥3.5 bn and those to local SMEs increased ¥61.7 bn year-on-year (refer to p.10). (Reference)  Foreign Currency Denominated Loans (JPY Bn) 128.3 116.0 12.2 Mar-17 ■ Joyo ■ Ashikaga (+1.7%) 4,348.4 474.6 (-5.9%) ■ Public sector 1,988.2 (+0.1%) ■ Corporate 1,885.4 (+5.6%) ■ Individual customers Mar-14 Mar-15 Mar-16 Mar-17
●Joyo + Ashikaga   (JPY Bn) (+6.5%) ●Joyo 1 Ashikaga 2,213.7 (+5.4%)
1,561.3 (+5.1%) (+5.5%) 1,489.6
Mar-14 Mar-15 Mar-16 Mar-17 * "Apartment loans" include those to corporate customers Mar-14 Mar-15 Mar-16 Mar-17 Mar-14 Mar-15 Mar-16 Mar-17
Unsecured Loans (Term-end balance)
Joyo + Ashikaga (JPY Bn) ●Joyo 0 Ashikaga
Employee-specific Website (Joyo)
◆ Ashikaga starts to make use of the employee-specific website from Oct. 2017 (Thousand people) (As of Mar. 31, 2017) Mar-14 Mar-15 Mar-16 Mar-17 Oct-12 Mar-13 Mar-15 Mar-16 Mar-17 Mar-16 Mar-15 Mar-17 Mar-15 Mar-16 Mar-17 ■ Car loans ■ Free loans ■ Educational loans 9 ■ Card loans (+15.2%) 136.6. (+11.0%) 724.0 (+7.3%) 3,951.3
●Joyo + Ashikaga (JPY Bn) ●Jovo 4,798.7 4,759.8 4,794.2 Mar-15  Mar-16  Mar-17
●Ashikaga
* The balance of Ashikaga doesn't include loans to financial institutions, which is ¥15.3 bn. (Mar-17) ■ Tokyo ■ Fukushima ■ Saitama ■ Ibaraki ■ Gunma (-47.0) ■ Tochigi Local 1,527.0 (+49.9) Mar-15 Mar-16 Mar-17 ●Joyo + Ashikaga (JPY Bn) Z S ance by Company Are ance by Mar-15 Mar-16 Mar-17 ●Joyo 0 Ashikaga 2,776.6 2,828.6 2,821.3 ■ Large ■ Large ■ Mid-sized ■ SMEs
4,759.8 4,798.7 4,794.2 ■ SMEs 1,588.1 (+28.9) 1,559.2 1,462.9 Mar-15  Mar-16  Mar-17 Mar-15 Mar-16 Mar-17 Mar-15  Mar-16  Mar-17 ■ Mid-sized 1,983.1 1,970.1 1,972.9 ◇ Deposits of individual and corporate customers have been on the increase. (Individual customers : YoY +2.7%, Corporate customers : YoY +1.3%) ※1 "Corporate" includes financial institutions. ※2  Foreign currency deposits include foreign currency deposits hedged by forward exchange contracts, offshore deposits, and so on.
◇ The sales amount of investment trusts and insurance products of each bank decreased due to the concern over the unstable financial market. ◇ Both banks have been focusing on broadening its customer base (refer to p.13). OJoyo ) Ashikaga )Joyo ) Ashikaga Commissio ഗ FY2013 FY2014 FY2015 FY2016 FY2013 12
nancial Assets under Custon
 )Joyo ●Ashikaga 191,616 190,950 197,224 148,936 149,898 156,499 Mar-14 Mar-15 Mar-16 Mar-17 Mar-14 Mar-15 Mar-16 Mar-17
Mar-14 Mar-15 Mar-16 Mar-17
JOVO A Account Openin Number o (Thousand) Mar-14 Dec-14 Mar-15 Dec-15 Mar-16 Dec-16 Mar-17 ●Ashikaga (Thousand) Dec-15 Mar-14 Dec-14 Mar-15 Mar-16 Dec-16 Mar-17
◇ Considering the interest rate of Japanese yen, suspended reinvestment of redemption payments of JGBs, which results in a decrease of the amount of domestic bonds held. ◇ Continue to rebalance our portfolio through purchasing investment trusts and foreign bonds, while paying attention to risk management. ●Ashikaga 1,325.7 1,417.1 265.6 7年461 173.0 223.0 809.3 699.5 Mar-15 Mar-16 Mar-17 ) Ashikaga 71.6 51.3 -0:5 31.9 19.5 −0.7 14 Mar-15 Mar-17 ealized Valuation Gains (Losse
n Available for Sale Securities 414.8 78戸erm-end Balance
ance Sheet Amo
◇ Despite the fact that taxes such as size-based business tax increased, expenses decreased (by ¥0.2 billion on Joyo-Ashikaga simple-sum basis) compared with the previous fiscal year, mainly due to decreases in non-personnel expenses centering on depreciation expenses. * The depreciation method has been changed from the declining-balance method to the straight-line method, which decreased depreciation expenses by ¥0.7 bn.
◇ In the second half of FY2016, despite of the fact that credit related costs increased mainly due to an extraordinary factor, number of bankruptcies of local businesses remains low level. <Reference (1)> Credit Related Cost Ratio Credit Related Costs (JPY Bn)
Non-performing Loans
Joyo (JPY Bn) 2.01% 1.91% 1.79% 1.74% 1.61% Mar-15 6.5
<Reference (2)>  Business Failures (Cases/JPY Bn)
( * ) Numbers of bankruptcies of enterprises with 100 million yen or more in net debt Ashikaga   (JPY Bn) 2.31% 2.22% 2.10% 2.04% 2.08% ■ Bankrupt and substantially bankrupt claims I Doubtful claims Claims requiring monitoring —●— Non-performing loan ratio
【Legal Form of the Business Combination】 Share Exchange on October 1,2016 Ashikaga HD  :  Parent company Joyo Bank : Wholly owned subsidiary 【Image ( As of October 1, 2016)】 Joyo Bank Total Net Assets (Consolidated Basis) ¥582.0bn + Ashikaga HD Fair Value of Net Assets (Consolidated Basis) (※1) ¥242.7bn 【Accounting for Business Combinations (Reverse Acquisition / Purchase Method)】 Gain on negative goodwill of ¥119.2bn is recorded in extraordinary income Joyo Bank : Acquiring company Ashikaga HD  :  Acquired company
Mebuki FG
Total Net Assets (consolidated) : ¥824.7bn Joyo Bank’s Total Net Assets (Consolidated Basis) ¥582.0bn Capital Surplus ¥123.5bn Retained Earnings ¥119.2bn (※2) Acquisition Cost  of Ashikaga HD (※3)  Gain on negative Goodwill The difference between the acquisition cost and the fair value of net assets of Ashikaga HD is gain on negative goodwill. Fair Value of Net Assets(※1) This figure is equivalent to the fair value of assets and liabilities of Ashikaga HD (after deduction of Ashikaga HD's positive   | goodwill on the balance sheet). Acquisition Cost of Ashikaga HD (※2) l  The acquisition cost in the purchase method, which is | equivalent to the market capitalization of Ashikaga HD, is recorded in capital surplus. | ◇Ashikaga HD's number of shares after adjustment / Exchange Ratio (1.17) ×Closing price of Joyo's stock at the final trading date. Gain on Negative Goodwill (※3) Gain on the negative goodwill is recorded in extraordinary income on the consolidated income statement and in retained earnings on the consolidated balance sheet. 17
◇ For FY2017, the projection of consolidated ordinary profit and that of consolidated net income* are ¥58.5 bn (YoY +6.2 bn) and ¥40.0 bn (YoY -¥118.4 bn) respectively. ◇ Synergy effect of the business integration of ¥2.7 bn is expected for FY2017 (The business integration synergy for the second half of FY2016 was ¥0.9 bn).
*  Attributable to owners of the parent
DMebuki FG

) Joyo + Ashikaga
)Joyo (non-consolidated) ) Ashikaga (non-consolidated)
Joyo + Ashikaga + Non-banking Subsidiaries (JPY Bn)

Capital Adequacy Ratio
<Reference>  Capital Adequacy Ratio without Temporary Measure (consolidated)

O Moody’s

※Calculation method of risk weighted assets Mebuki FG : The fundamental internal rating based approach Joyo : The fundamental internal rating based approach Ashikaga : The standardized approach
Rating
O R&I (Rating and Investment Information, Inc.)

Dividend Policy
[ Earnings Dividend Policy ] Aim to continue stable dividend returns while taking into account of both the maintenance of solid capital levels for the future growth and the appropriate distribution of profits to our shareholders O   For FY2016, year-end dividend is ¥6.50 per share, including a commemorative dividend of ¥1.00 for the business integration (Reference)   Dividend payout ratio (FY2016) : 7.6% Dividend payout ratio excluding an extraordinary factor * : 26.9% * The later ratio is calculated as shown below: Dividend (Interim dividend of Joyo and Ashikaga HD + Year-end dividend of Mebuki) Consolidated net income (1st half of Joyo and Ashikaga HD + 2nd half of Mebuki FG [ exc. Gain on negative goodwill ]) O   For FY2017, annual dividend  projection is ¥11.00 per share in line with the earnings dividend policy (Dividend payout ratio estimate : 32.3%).
Shareholder Benefit Plan
[ Shareholders Eligible ] Shareholders recorded in the register of shareholders as of March 31 of every year and holding 1,000 shares or more at the record date. [ Contents of the Plan ] Depending on the number of shares held, shareholders can choose items from a dedicated catalog that lists local specialties and so forth. [ Dividends per Share ]
[ Contents of the Shareholder Benefit Plan ]
* The number of items listed on the FY2016 Joyo Bank's shareholder benefit catalog is 316.

(Regional Revitalization)
Food Exhibition In Mito City • Product development • Test marketing ＜refer to p.23＞ Conducted on Oct. 12, 2016 in Utsunomiya City • Sales channel cultivation • Sales channel development ＜refer to p.23＞
Mebuki Business Award < refer to p.24> Mebuki Financial Group Support business meetings through technical proposal booklet and panel exhibition < refer to p.25 > <refer to p.26> Conducted on Feb. 22, 2017
(Regional Interaction)
Economic Lecture (held 8 times in the 2H FY2016) Introduced Mebuki FG in the main cities for both banks at the time of the lectures (Presidents of both banks took part in the lectures in the underlined cities below). 【Venue】Tochigi Pref.: Utsunomiya, Ashikaga Ibaraki Pref.: Mito, Tsukuba, Hitachi, Kashima, Shimodate Fukushima Pref.: Koriyama
(Organizational Integration (Personnel Exchange))
Joint-Training
participated. Shared each other's training program.

【Other Initiatives and Measures】
OIntegration of overlapping branches :  Integrate four of Joyo’s branches into two in Ustunomiya city and Moka city (on Apr. 3, 2017) OOperational efficiency improvement: Shared card issuing process, which reduces cost by approx. ¥18 mil per year OBusiness alliance with crowd funding service “Makuake” (Ashikaga) First deal completed  (Joyo)  Developed affiliated loan
■ Held “Food Exhibition in Mito City” and “Food Business Meeting in Utsunomiya City” for food related business operators. ■ Dividing the value chain of local products  from development to sales into four stages below, provided seamless support through appropriate measures depending on the stage. 1.Product Development 2.Test Marketing (Improvement of Products)
Food Exhibition in Mito City

<Contents> • Food related business operators exhibited their products and international students and housewives experienced the products and evaluated them. • Evaluation based on taste, price, package and so forth. • Support food related operators'  future product development and test marketing. 3.Sales Channel Cultivation 4.Sales Channel Development Food Business Meeting in Utsunomiya City

<Contents>
• Exhibition where selling enterprises promote their products • Business meetings which require reservation • Support food related business operators' sales channel expansion • Number of buyer enterprises that participated: 148 Venue Business Meeting Exhibition of Prize-winning Products of the Food Exhibition
■ In commemoration of the establishment of Mebuki Financial Group, each bank’s business award was integrated together and the first “Mebuki Business Award” is being held. Ingenious business ideas latent in both banks’ vast business territory are gathered and the best entries will be presented with awards. ■ After the award, consistent support is provided, including financial support such as formulating business plans and launching new businesses through financing and so forth. Preliminary Judging BANK OEach bank collects and evaluates plans (Document Screening / External Evaluation)
OGrand Prix, Excellence Award, and Special Award (Presentation / External Evaluation)
【Invest】 Mebuki Regional Revitalization Fund Fund Size: ¥2 bn 【Invest】 Businesses operation Sompo Japan Nippon Insurance
Outline of the Fund
Establishment: November 14, 2016 Investment Period: 10 years Methods: Capital Contribution, etc. Structure: Investment Business Limited Partnerships Amount / Number of deals ¥1.2 bn  / 4 deals (as of May12, 2017) (Completed Deals) 1. World Farm (Tsukuba city) Date: Jan. 31, 2017 / Amount : ¥100 million 2. HATAKE Company (Tsukuba city) Date: May. 31, 2017 / Amount: ¥200 million 3. SS Food International (Ichikawa city) Date: Apr. 25, 2017 / Amount: ¥200 million 4. Hayakawa Holdings (Ashikaga city) Date: Apr. 28, 2017 / Amount: ¥700 million Joyo Industrial Research Ashigin Research Institute 【Management Support】 based on the possibilities of investment in new businesses Tourism Food ＜Investment Target＞ Agriculture •Operators who contribute to industrial development in food, agriculture, and tourism sectors (including agricultural corporations) •Prize winners of Mebuki Business Award etc. 【Invest / Manage】
◾ Ａrecord number of 314 companies, including Ashikaga Bank's 72 customers, exhibited at this year's forum (including 11  overseas companies) ◾ Distributed English version of the technical proposal booklet for the first time and coordinated business meetings with overseas companies. ■ With the full cooperation of SUBARU CORPORATION (Gunma Manufacturing Division), set up exhibition booth of seven Tier 1 manufacturers. ■ Conducted demonstrations which can offer clues to manufacturing →  Sango Co., Ltd. and Sango Kanto Co., Ltd. exhibited labor saving machines which are used in the companies' factories. →  A venture company spun off from The Industrial Technology Research Institute of Taiwan demonstrated a walking support robot. • Exhibitors:  314 companies • Visitors: 850 companies / Approx. 2,000 people • Business meetings based on technical proposal booklet: 390 meetings Business meetings between Joyo Bank’s customers and Ashikaga Bank’s customers: 90 meetings ◾ Three prize-winners of Joyo Business Award conducted presentations. ＜Technical proposal booklet (English Ver.)＞ ＜SUBARU CORPORATION's booth＞

Support Customers’ Asset Building
<For the First Investment>
◾ First Investment Campaign (Jun.-Dec. / under planning) Reward customers who open a new account, and purchase financial products (¥100,000 or more) or start an accumulation service for investment trusts (¥10,000 per month or more) with prizes.
<For Additional Investment>
■ Mebuki Securities  (Apr.-) Ashikaga Bank started to intermediate financial products carried by Joyo Securities at its all branches. ■ Foreign Bond Campaign (Apr.-Jun.) Reward customers who purchase foreign bonds directly from Mebuki Securities or from the securities company through any of Mebuki’s banking subsidiaries with gift certificate or local specialties.
<Others>
Mebuki FG Founding Commemoration Seminar (Apr.-Jun.) ■ Foreign Currency Deposit Campaign (Jun.- Sept. / under planning)
Support Customers’ Housing Acquisition
<Housing Loans>
■ Housing Loan for Women (Apr.-) ▷ A maximum two-year grace period of principal payment during maternity and child care leave period ▷ Exemption of prepayment fee ▷ Exemption of group credit life insurance premium ■ Online Application Housing Loan (May-) ▷ Preferential interest rates ▷ Exemption of prepayment fee ▷ Exemption of group credit life insurance premium
Unsecured Loans
Motivates students to go to universities located in Ibaraki and Tochigi Prefecture Prevent student drain and increase student migration from other prefectures as measures against population decline ■   One-year Anniversary of Mebuki FG (Sept. 2017-Apr. 2018 / under planning) Preferential interest rates for housing/educational loans

<Support for Manufacturers>
■ Manufacturer Training Workshop  (Aug.-Sept.)
▷ Inform KAIZEN activities conducted by large companies to our customers for productivity improvement. ▷ Achieve SMEs’ improvement of production management and development of human resources through the workshop.
■ R&D Meet-up in Utsunomiya and Mito  (May-Jun.)
▷ Provide opportunities for applicants to have discussions with researchers of  universities and research institute, concerning certain themes. ▷ Promote information exchange among the participants.
■ Rebuild support structures for start-ups and
second start-ups
▷ Construct a support structure for university-originated venture businesses. ▷ Support Mebuki Business Award applicants to launch new businesses. Investment limit of Mebuki Regional Revitalization Fund is planed to be increased based on the possibilities of investment in their businesses. (Present Investment limit : ¥2.0 bn / Investment amount : ¥1.2 bn)
<Support for Agricultural Producers>
■ Collaboration on Agri-Food Matching   (Sept.)
▷ Joyo conducted a business matching event in Tsukuba city to match agricultural producers and food processing operators on a trial basis (Feb.) ▷ Another matching event is being planned, broadening its area, which newly includes Tochigi Prefecture, and extending its scope to producer associations and municipalities.
<Support for Overseas Expansion>
■ Cooperation on export support services (Mar.-) ■ Cooperation with Japan Halal Business Association (Apr.-) ■ Overseas business convention, business networking, seminar (Jun.-) ■ South East Asia Investment Seminar (Jun./ under planning )
<Matching Event for Experienced Retirees and Local Businesses>
• Under the cooperation of Kanto Bureau of Economy, Trade and Industry and regional financial institutions, conduct matching events to match companies experiencing various management issues, and retirees and those who are just before their retirement. • Through matching companies experiencing management issues, such as development of new products, sales channel expansion, and experienced retirees, help the companies resolve management challenges. Inquiries : Mebuki Financial Group, Inc.   Corporate Planning Department +81-29-300-2869 or +81-29-300-2603 ir@mebuki-fg.co.jp http://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.