77 Bank : IR Presentation Results for the Fiscal Year Ended March 31,2021(June 1,2021)

Results for the Fiscal Year

Ended March 31, 2021

IR Presentation

Materials were prepared for the Bank's presentation of its results for the fiscal year ended March 31, 2021 held on June 1, 2021.

June 1, 2021

Contents

1. Financial Summary

... 2

2. Vision 2030

... 12

3. Projected Performance

... 35

4. Business Strategy

... 39

5. ESG and SDGs

... 50

The 77 Bank, Ltd. | Fiscal Year Ended March 31, 2021	1

01 Financial Summary

The 77 Bank, Ltd. | Fiscal Year Ended March 31, 2021	2

1. Financial Summary (Summary of profits and losses)

Summary of profits and losses			FY2020			FY2021			YoY change
					Increase/decrease	Rate of change %
(Non-consolidated)	(JPY bn, %)
Gross operating income				72.1			67.8			(4.3)				(6.0)
[ Core gross operating income	]	[	74.6	]	[	80.6	]	[	6.0	]	[	7.9	]
		Interest income				68.5			70.5			2.0				2.8
			Interest on loans and bills discounted			41.9			41.6			(0.3)				(0.7)
			Interest and dividends on securities	A		28.7			29.8			1.1				3.8
		Fees and commissions			9.7			9.8			0.1				1.3
		Other operating income			(6.1)			(12.5)			(6.4)
			Gains (losses) on bonds	B		(2.5)			(12.8)			(10.3)
			Gains (losses) on forex transactions			(3.5)			0.8			4.3
Expenses				53.2			50.2			(3.0)				(5.7)
Substantial operating income						17.6
	(Operating income before provision of general reserve for			18.9					(1.3)				(6.7)
possible loan losses)
[		Core operating income	]	[	21.4	]	[	30.4	]	[	9.0	]	[	42.1	]
[		Core operating income	]	[	14.3	]	[	18.7	]	[	4.4	]	[	31.2	]
	(excl. gains (losses) on cancellation of investment trusts)
Provision of general reserve for possible loan losses	[1]		1.2			1.7			0.5
Operating income				17.7			15.9			(1.8)				(10.2)
Special income and losses			6.9			6.8			(0.1)
		Bad debt disposals (-)		[2]		6.1			6.0			(0.1)
		Gains on reversal of reserve for possible loan loss	[3]		0.0			0.1			0.1
		Gains (losses) on stocks	C		4.6			10.8			6.2
		Gains (losses) on investments in money held	D		8.8			3.0			(5.8)
		in trust
Ordinary income				24.6			22.7			(1.9)				(8.0)
Extraordinary income				－			－			－
Extraordinary loss				0.1			0.3			0.2
Income taxes (incl. deferred taxes)			7.2			7.5			0.3
Net income				17.3			14.9			(2.4)				(13.7)
Credit-related expenses	[1] + [2] - [3]			7.3			7.6			0.3
Total gains (losses) from securities [A + B + C + D]		39.6			30.8			(8.8)
Summary of profits and losses (Consolidated)
Ordinary income				26.3			25.1			(1.2)				(4.5)
Net income attributable to owners of the parent			18.2			16.5			(1.7)				(9.8)

< Core operating income >

Core operating income increased JPY 9.0 billion year- on-year, thanks partly to improved gains (losses) on forex transactions, as well as a decline in expenses.

• Ordinary income and net income >

Ordinary income and net income decreased JPY 1.9 billion and JPY 2.4 billion year- on-year respectively, owing mainly to a decrease in total gains (losses) from securities.

The 77 Bank, Ltd. | Fiscal Year Ended March 31, 2021	3

1. Financial Summary (Interest income)

												(JPY bn)
						FY2020			FY2021		YoY change
Interest income			68.5			70.5			2.0
	Investment income			70.8			71.8			1.0
		Interest on loans and bills discounted	]	[	41.9	]	[	41.6	]	[	(0.3)	]
		[
		[	Interest and dividends on securities	]	[	28.7	]	[	29.8	]	[	1.1	]
					2.3			1.3			(1.0)
	Fund procurement costs
		Interest on deposits	]	[	0.8	]	[	0.3	]	[	(0.5)	]
		[
												(JPY bn)
	Major accounts (average balances)			FY2020			FY2021		YoY change
Loans and bills discounted			4,747.5		4,965.1		217.6
Securities			2,789.3		2,925.6		136.3
Deposits and certificates of deposits			7,790.8		8,216.1		425.3
												(%)
			Interest rates			FY2020			FY2021		YoY change
Loans and bills discounted interest rate			0.88			0.83			(0.05)
Securities interest rate			1.02			1.01			(0.01)
Interest rate on deposits			0.00			0.00			0.00

Interest income increased JPY 2.0 billion year-on-year, partly as a result of an increase in interest and dividends on securities and a decline in interest on deposits.

< Change factors in interest income >

(JPY bn)

		Factors in
		securities
		+1.1	Factors in
	Average
		deposits
	balances	Average	+0.5
	+1.9
	balances
		+1.4	Yield	Others
			+0.7
			+0.5
				FY2021
FY2020			Average	Interest
	Yield	income
	balances
Interest		(0.3)	(0.0)	70.5
income
68.5	Yield
	(2.2)

Factors in loans

(0.3)

The 77 Bank, Ltd. | Fiscal Year Ended March 31, 2021	4