MIYAZAKI BANK : ’22 INFORMATION

MIYAZAKI BANK '22 INFORMATION

Consolidating Information

Outline of Miyazaki Bank Group

Group outline

Miyazaki Bank and its 6 consolidated subsidiaries engage in general retail banking and related financial services, such as leasing, credit guarantee and credit card businesses.

Bank business

The head office and 70 branches offer deposit services, loan businesses, domestic exchange businesses, foreign exchange businesses, and other related services.

Leasing business

The consolidated subsidiary Miyagin Lease Co., Ltd. offers general leasing services.

Other businesses

The consolidated subsidiaries Miyagin Venture Capital Co., Ltd., Miyagin Guarantee Co., Ltd. and Miyagin Card Co., Ltd. engage in investment service for stocks and corporate bonds and management consulting service, credit guarantee services including housing loans, and credit card businesses, respectively.

The following chart illustrates the business organizations of the Group as described above.

The Miyazaki Bank, Ltd.

	Bank business	Miyazaki Bank and
	2 consolidated subsidiaries

The head office, 70 branches and 25 subbranches

Miyagin Business Service Co., Ltd.

Miyagin Computer Service Co., Ltd.

	Leasing business		1 consolidated subsidiary
	Miyagin Lease Co., Ltd.
	Other businesses		3 consolidated subsidiaries

Miyagin Venture Capital Co., Ltd.

Miyagin Guarantee Co., Ltd.

Miyagin Card Co., Ltd.

None of our consolidated subsidiaries is listed company. Miyagin Computer Service Co., Ltd. changed its company name to Miyagin Digital Solutions Co., Ltd. as of April 1, 2022.

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Changes in Principal Management Indicators in Last 5 Years (Consolidated)

					Japanese Yen		U.S. Dollars
	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022		FY 2022
Consolidated ordinary income	54,222	53,444	56,838	54,664	63,824	Millions	521,481	Thousands
Consolidated ordinary profit	12,894	13,610	10,828	12,028	11,535	Millions	94,248	Thousands
Profit attributable to owners of parent	8,770	9,729	7,125	7,995	7,473	Millions	61,059	Thousands
Consolidated comprehensive income	8,716	6,936	(1,565)	11,990	2,226	Millions	18,188	Thousands
Consolidated net assets	146,453	151,878	148,541	158,585	159,130	Millions	1,300,188	Thousands
Consolidated total assets	2,966,545	3,101,632	3,325,076	3,653,865	4,241,963	Millions	34,659,392	Thousands
Net assets per share	8,486.39	8,791.61	8,593.83	9,182.77	9,212.03	Yen	75.27	Dollars
Basic earnings per share	509.46	564.73	413.44	463.63	433.28	Yen	3.54	Dollars
Diluted earnings per share	507.78	562.99	412.01	461.74	431.01	Yen	3.52	Dollars
Capital adequacy ratio	4.92	4.88	4.45	4.33	3.74	%	3.74	%
Consolidated capital adequacy ratio (domestic standard)	9.51	8.29	8.34	8.40	8.39	%	8.39	%
Consolidated return on equity ratio	6.15	6.53	4.75	5.21	4.71	%	4.71	%
Consolidated price earnings ratio	6.48	4.90	5.76	5.04	4.76	Times	4.76	Times
Cash flows from operating activities	(109,994)	91,319	161,683	256,482	487,689	Millions	3,984,713	Thousands
Cash flows from investing activities	73,539	20,919	44,964	(97,332)	(14,874)	Millions	(121,530)	Thousands
Cash flows from financing activities	(1,560)	(21,553)	(1,813)	(1,990)	(1,726)	Millions	(14,102)	Thousands
Cash and cash equivalents at the end of the period	263,766	354,452	559,281	716,448	1,187,545	Millions	9,702,958	Thousands
Number of employees	1,604	1,586	1,542	1,535	1,502	Persons	1,502	Persons
[Average number of temporary staffs]	[423]	[414]	[400]	[393]	[393]	Persons	[393]	Persons

(Notes)

1. The Bank conducted a 1-for-10 reverse stock split on common shares with an effective date of October 1, 2017. Net assets per share, basic earnings per share and diluted earnings per share are calculated as if the reverse stock split had been conducted at the beginning of FY 2018.
2. The capital adequacy ratio was calculated by subtracting year-end balances of share acquisition rights and non-controlling interest from year-end balance of total net assets and dividing the difference by year-end balance of total assets.
3. The consolidated capital adequacy ratio was calculated by the calculation method specified in the Financial Services Agency Announcement No. 19, 2006 in accordance with Article 14-2 of the Banking Act. The Bank adopts domestic standard.
4. Average number of temporary staffs is calculated by converting their working hours to regular working hours of the Bank.
5. Solely for the convenience of the reader, US dollar amounts in this Annual Report represent a translation of Japanese yen at ¥122.39 to US$1.00, the exchange rate prevailing on March 31, 2022.The figures that have been translated into dollars have been rounded off. Therefore, the total figures in this Annual Report may not necessarily match the aggregate of the individual amounts shown.

2

Restructured Loans (Consolidated)

Years ended March 31	Millions of Japanese Yen
	At the end of	At the end of
	FY 2021	FY 2022
Loans to bankrupt parties and	4,387	7,061
rehabilitation and similar cases
High-risk loans	17,588	17,920
Loans overdue for three months or more	－	－
Lending condition-eased loans	12,864	6,117
Subtotal	34,840	31,099
Standard loans	2,160,690	2,284,222
Total	2,195,531	2,315,322

Thousands of

U.S. Dollars

At the end of

FY 2022

57,693

146,417

－

49,980

254,098

18,663,469

18,917,575

Remaining Debts under the Financial Revitalization Law (Consolidated)

Years ended March 31	Millions of Japanese Yen
	At the end of	At the end of
	FY 2021	FY 2022
Loans to bankrupt parties and	4,387	7,061
rehabilitation and similar cases
High-risk loans	17,588	17,920
Loans under management	12,864	6,117
Subtotal	34,840	31,099
Standard loans	2,160,690	2,284,222
Total	2,195,531	2,315,322

Thousands of

U.S. Dollars

At the end of

FY 2022

57,693

146,417

49,980

254,098

18,663,469

18,917,575

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Consolidated Financial Statements

The Consolidated Financial Statements included in this report were prepared based on the Consolidated Financial Statements audited by Deloitte Touche Tohmatsu LLC pursuant to the provisions of Article 396, Paragraph 1 of the Companies Act and Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act.

Consolidated Balance Sheet

(Assets)	Millions of Japanese Yen		Thousands of
	U.S. Dollars
	FY 2021	FY 2022		FY 2022
Cash and due from banks	720,678	1,189,790		9,721,301
Call loans and bills bought	－	1,012	8,269
Monetary claims bought	11	－		－
Money held in trust	14,000	11,000		89,877
Securities	696,478	712,275		5,819,716
Loans and bills discounted	2,152,240	2,257,738		18,447,079
Foreign exchanges	1,794	2,416		19,740
Lease receivables and investments in leases	10,859	10,575		86,404
Other assets	30,341	31,327		255,960
Property, plant and equipment	23,787	23,312		190,473
Buildings	7,745	7,549		61,680
Land	13,401	13,327		108,890
Other	2,641	2,435		19,895
Intangible assets	4,635	4,408		36,016
Software	4,558	4,332		35,395
Other	76	76		621
Deferred tax assets	3,687	6,131		50,094
Customers' liabilities for acceptances and guarantees	5,177	4,940		40,363
Allowance for loan losses	(9,827)	(12,966)		(105,940)
Total assets	3,653,865	4,241,963	34,659,392

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(Liabilities and Net Assets)	Millions of Japanese Yen		Thousands of
	U.S. Dollars
	FY 2021	FY 2022		FY 2022
Liabilities:
Deposits	2,799,825	2,950,031		24,103,530
Negotiable certificates of deposit	14,174	42,865		350,233
Call money and bills sold	245,849	326,871		2,670,733
Cash collateral received for securities lent	138,240	119,274		974,540
Borrowed money	271,411	620,318		5,068,372
Foreign exchanges	60	99		809
Other liabilities	12,354	12,499		102,124
Provision for bonuses for directors (and other officers)	35	35		286
Retirement benefit liability	5,624	3,299		26,955
Provision for reimbursement of deposits	194	284		2,320
Provision for contingent loss	147	135		1,103
Deferred tax liabilities for land revaluation	2,185	2,176		17,779
Acceptances and guarantees	5,177	4,940		40,363
Total liabilities	3,495,280	4,082,832	33,359,196
Net assets:
Share capital	14,697	14,697		120,083
Capital surplus	12,780	12,780		104,420
Retained earnings	121,937	127,703		1,043,410
Treasury shares	(1,191)	(1,191)		(9,731)
Total shareholders' equity	148,224	153,988		1,258,175
Valuation difference on available-for-sale securities	8,504	3,143		25,680
Revaluation reserve for land	2,790	2,773		22,657
Remeasurements of defined benefit plans	(1,125)	(1,012)		(8,269)
Total accumulated other comprehensive income	10,168	4,905		40,077
Share acquisition rights	191	236		1,928
Total net assets	158,585	159,130		1,300,188
Total liabilities and net assets	3,653,865	4,241,963	34,659,392

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