Mebuki Financial : Financial Results for Fiscal Year 2022, ended March 31, 2023

May, 12 2023

Mebuki Financial Group, Inc.

Financial Results for Fiscal Year 2022, ended March 31, 2023

Stock Exchange Listing:	Tokyo (code: 7167)
URL:	https://www.mebuki-fg.co.jp/
Representative:	Tetsuya Akino, President
For Inquiry:	Shinichi Onose, General Manager of Corporate Planning Dept.
Date of General Meeting of Shareholders:	June 22, 2023 (scheduled)
Payment date of cash dividends:	June 2, 2023 (scheduled)
Filing date of Financial Statements:	June 23, 2023 (scheduled)
IR Conference:	Scheduled (for investors)
	(Japanese yen amounts of less than 1 million or the first decimal place have been rounded down.)

1. Financial Highlights (from April 1, 2022 to March 31, 2023)

(1)Consolidated Operating Results				(%: Changes from the corresponding period of the previous fiscal year)
					Ordinary Income		Ordinary Profit				Net Income attributable to
									owners of the parent
	Fiscal year			¥Million	％		¥Million			％		¥Million	％
	Ended March 31, 2023			329,457	22.8		46,631		(28.2)			32,176	(25.0)
	Ended March 31, 2022			268,090	(2.4)		64,992		20.1			42,958	17.7
	(Note) Comprehensive Income	FY2022: ¥(37,554) million [-%] FY 2021: ¥(7,603) million [-%]
				Net Income per	Net Income per	Return on Capital		Ordinary Profit		Ordinary Profit on
					Share	Share (Diluted)		Assets		on Total Assets		Ordinary Income
	Fiscal year			¥	¥			％					％		％
	Ended March 31, 2023			29.90	29.89	3.4				0.2		14.1
	Ended March 31, 2022			38.96	38.95	4.3				0.2		24.2
	(Reference) Equity in earnings (losses) of affiliates	FY 2022: ¥ － million FY 2021: ¥ － million
(2)Consolidated Financial Conditions
				Total Assets	Net Assets		Capital Assets to	Net Assets per Share
					Total Assets
	Fiscal year			¥Million	¥Million					％				¥
	Ended March 31, 2023				21,387,481	904,779			4.2				849.92
	Ended March 31, 2022				24,125,520	959,063			3.9				888.10

(Reference) Capital assets FY2022: ¥904,685 million FY2021: ¥958,932 million

(Note) "Capital assets to total assets" represents ("Net assets"-"Equitywarrants"-"Non-controlling interest") / "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 Cash Flows

		Cash Flows from		Cash Flows from			Cash Flows from		Cash and Cash Equivalents
		Operating Activities		Investing Activities			Financing Activities			at year-end
	Fiscal year		¥Million				¥Million					¥Million				¥Million
	Ended March 31, 2023		(3,368,097)				922,430			(16,669)			4,802,328
	Ended March 31, 2022		1,232,138				(358,507)			(31,846)			7,264,647
2. Cash Dividends for Shareholders
				Cash Dividends per Share					Total		Dividend	Ratio of
									Dividends to Net
		End of 1Q	End of 2Q	End of 3Q	End of		Annual	Dividends		Payout Ratio
				Assets
		FY		(Annual)		(Consolidated)
															(Consolidated)
	Fiscal year	¥		¥		¥		¥			¥		¥Million			％	％
	Ended March 31, 2022	―		5.50			―		5.50			11.00	11,990			28.2	1.2
	Ended March 31, 2023	―		5.50			―		5.50			11.00	11,796			36.7	1.2
	Ending March 31, 2024 (Forecast)	―		5.50			―		5.50			11.00					28.5
3. Consolidated Earnings Forecasts for Fiscal Year 2023, ending March 31, 2024
									(%: Changes from the corresponding period of the previous fiscal year)
									Ordinary Profit			Net Income Attributable to	Net Income per Share
												Owners of the Parent
								¥Million				％		¥Million			％		¥
	Six months ending September 30, 2023							28,500		(26.2)		20,000		(25.7)		19.04
	Fiscal year ending March 31, 2024							57,500			23.3		40,000		24.3		38.46

*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
3. • 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
4. Number of issued shares (common stock)
5. • Number of issued shares (including treasury stock):

March 31, 2023	1,089,055,218 shares	March 31, 2022	1,089,055,218 shares
② Number of treasury stock:
March 31, 2023	24,621,524 shares	March 31, 2022	9,299,365 shares

• Average number of shares:

FY2022

1,075,922,321 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.

	Financial Results for the Fiscal Year 2022, Ended March 31, 2023
-----------------------------------------------	Contents -----------------------------------------------
Ⅰ Consolidated Financial Information for Fiscal Year 2022	page
1.	Consolidated Balance Sheet	1
2.	Consolidated Statement of Income and Consolidated Statement of Comprehensive Income	3
3.	Consolidated Statement of Shareholders' Equity	5
4.	Consolidated Statement of Cash Flows	7
5.	Note for Assumptions of Going Concern	9
6.	Changes in Accounting Policies and Estimates and Modified Restatement	9
7. Subsequent Events	9
Ⅱ 【Reference】Non-consolidated Financial Information of the main consolidated subsidiaries
1.	Non-consolidated Financial Information of The Joyo Bank, Ltd.	10
2.	Non-consolidated Financial Information of The Ashikaga Bank, Ltd.	16

• Financial Data for the Fiscal Year 2022 ended March 31, 2023

1.	Income Status	21
2.	Net Business Income	25
3.	Interest Rate Spread	25
4.	Return on Equity	26
5.	Gains and Losses on Securities	26
6．Valuation Gains (Losses) on Securities	27
7.	Capital Adequacy Ratio (Domestic standard)	28

• Status of Loans

1.	Status of Disclosed Claims under the Financial Revitalization Law and Risk-monitored Loans	29
2.	Allowance for Loan Losses	30
3.	Status of Coverage on Disclosed Claims under the Financial Revitalization Law	31
4. Comparison between Self-assessment, Disclosed Claims under the Financial Revitalization Law and Risk-monitored Loans	32
5.	Loan Portfolio, etc.	34
6.	Outstanding Balance of Deposits and Loans 【Non-consolidated】	37

• Consolidated Financial Information for Fiscal Year 2022 1. Consolidated Balance Sheet

(Millions of yen）

Item

(Japanese)

As of Mar. 31,

As of Mar. 31,

2022

2023

Assets

(資産の部)

Cash and due from banks

現

金

預

け

金

7,270,668

4,818,749

Call loans and bills bought

コ

ー ル ロ ー ン

及 び 買 入 手 形

6,507

24,115

Monetary claims bought

買

入

金

銭

債

権

10,611

10,341

Trading assets

特

定

取

引

資

産

4,589

3,962

Money held in trust

金

銭

の

信

託

2,027

3,010

Securities

有

価

証

券

4,682,301

3,662,309

Loans and bills discounted

貸

出

金

11,737,377

12,436,196

Foreign exchanges

外

国

為

替

17,220

17,216

Lease receivable and investments in lease

リ ー ス 債 権 及 び リ ー ス 投 資 資 産

65,325

60,454

Other assets

そ

の

他

資

産

243,257

247,636

Tangible fixed assets

有

形

固

定

資

産

102,802

101,567

Buildings, net

建

物

37,076

36,459

Land

土

地

52,666

52,657

Leased assets, net

リ

ー

ス

資

産

31

31

Construction in progress

建

設

仮

勘

定

622

170

Other tangible fixed assets

そ

の

他

の

有

形

固

定

資

産

12,405

12,248

Intangible fixed assets

無

形

固

定

資

産

15,896

13,523

Software

ソ

フ

ト

ウ

エ

ア

12,628

10,272

Other intangible fixed assets

そ

の

他

の

無

形

固

定

資

産

3,267

3,250

Asset for retirement benefits

退

職

給

付

に

係

る

資

産

32,462

40,791

Deferred tax assets

繰

延

税

金

資

産

2,237

20,027

Customers' liabilities for acceptances and guarantees

支

払

承

諾

見

返

26,044

19,448

Allowance for loan losses

貸

倒

引

当

金

(93,800)

(91,859)

Reserve for devaluation of investment securities

投

資

損

失

引

当

金

(8)

(8)

Total Assets

資

産

の

部

合

計

24,125,520

21,387,481

Liabilities

(負債の部)

Deposits

預

金

16,825,736

17,137,285

Negotiable certificates of deposit

譲

渡

性

預

金

310,724

371,289

Call money and bills sold

コ

ー ル マ ネ ー 及 び 売 渡 手 形

1,044,954

555,552

Payables under repurchase agreements

売

現

先

勘

定

148,165

112,902

Payables under securities lending transactions

債

券 貸 借 取

引 受 入 担 保

金

826,826

111,887

Trading liabilities

特

定

取

引

負

債

343

1,122

Borrowed money

借

用

金

3,795,700

2,000,858

Foreign Exchanges

外

国

為

替

4,390

8,350

Due to trust account

信

託

勘

定

借

3,046

2,983

Other liabilities

そ

の

他

負

債

154,855

147,695

Provision for directors' bonuses

役

員

賞

与

引

当

金

281

183

Liability for retirement benefits

退

職

給

付

に

係

る

負

債

324

－

Provision for directors' retirement benefits

役

員

退

職

慰

労

引

当

金

24

29

Provision for reimbursement of deposits

睡

眠 預 金 払

戻 損 失 引 当

金

2,183

1,954

Provision for contingent loss

偶

発

損

失

引

当

金

2,349

2,103

Provision for point card certificates

ポ

イ

ン

ト

引

当

金

508

564

Provision for loss on interest repayment

利

息

返

還

損

失

引

当

金

8

4

Reserves under special laws

特

別

法

上

の

引

当

金

2

2

Deferred tax liabilities

繰

延

税

金

負

債

11,339

0

Deferred tax liabilities for land revaluation

再

評 価 に 係 る 繰 延

税 金 負 債

7,936

7,929

Negative goodwill

負

の

の

れ

ん

711

553

Acceptances and guarantees

支

払

承

諾

26,044

19,448

Total liabilities

負

債

の

部

合

計

23,166,457

20,482,702

- 1 -

										(Millions of yen）
Item				(Japanese)				As of Mar. 31,	As of Mar. 31,
						2022	2023
Net Assets			(純資産の部)
Capital stock	資				本			金	117,495	117,495
Capital surplus	資	本		剰	余	金	125,692	125,705
Retained earnings	利	益		剰	余	金	602,694	622,845
Treasury stock	自		己			株		式	(2,357)	(7,181)
Total shareholders' equity	株	主		資	本		合	計	843,524	858,864
Unrealized gains on available-for-sale securities	そ	の 他 有 価 証 券 評 価 差 額 金	91,550	18,692
Deferred gains (losses) on hedges	繰	延	ヘ		ッ	ジ	損	益	6,734	7,435
Land revaluation surplus	土	地	再	評	価	差	額	金	11,944	12,088
Defined retirement benefit plans	退 職 給 付 に 係 る 調 整 累 計 額	5,177	7,604
Total accumulated other comprehensive income	そ の 他 の 包 括 利 益 累 計 額 合 計	115,407	45,821
Equity warrants	新	株		予	約	権	130	62
Non-controlling interest	非	支	配		株	主	持	分	－	31
Total net assets	純	資	産		の	部	合	計	959,063	904,779
Total liabilities and net assets	負	債 及	び	純 資 産	の	部 合	計	24,125,520	21,387,481

(Note) Figures are rounded down to the nearest million.

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