#1SANHN GODO BANK The best banking partner for creatively realizing the dreams of the community and our customers Investor Relations Meeting for FY2020 June 2, 2021 <Information Pack> SAN-IN GODO BANK#2(Information Pack) Table of Contents 1. Results of the Previous Medium-Term Management Plan 2. Branch Network and Summary of Loan Portfolio by Prefecture 3. Yields on Loans and Bills Discounted by Region and Market 4. Loan Balance by Industry 5. Changes in NPL Disposals by Factor 6. Changes in Delinquency Rate for Loans 7. Individual Loans: Credit Cards 8. Shareholders' Equity Ref. 1. Major Statistics for Shimane and Tottori Ref. 2. Economic Environment in Shimane and Tottori Ref. 3. Direction of Economy in Shimane and Tottori (1) Ref. 4. Direction of Economy in Shimane and Tottori (2) Ref. 5. Direction of Economy in Shimane and Tottori (3) Numerical Data 1-9 9. FY2021 Income Plans (1) 10. FY2021 Income Plans (2) 11. Community Revitalization/Community Creation 12. Promoting ESG Management: SDG promotion and awareness-raising initiatives 13. Promoting ESG Management: Initiatives within the Organization 14. Promoting ESG Management: Other Community Contribution Activities#31. Results of the Previous Medium-Term Management Plan Earnings were lower than planned, due mainly to factors such as increased credit costs resulting from the effects of COVID-19. At the same time, other factors, including steady progress with revisions of the revenue structure and structural reforms including organizational and business streamlining, as well as the movement of customer service business profits into the black, led to progress on strengthening management foundations for future growth strategies. Target management indicators Profitability Capital efficiency Cost efficiency Soundness Item FY2017 (Results) FY2020 Net income *1 13.6 billion yen Targets 13.8 billion yen Results (vs. Target) Consolidated or higher 9.6 billion yen Non-interest 16.93% 19% or higher 14.15% revenue ratio *2 Return on equity 4.51% 4.2% or higher 2.94% (ROE) *3 Non- consolidated Overhead ratio 61.75% 63% or lower 60.58% (OHR) *4 Capital adequacy ratio 13.48% 13% or higher 11.97% *1 Profit attributable to owners of parent *2 Formula: (Net fees and commissions + other banking income (excluding profit/loss related to Japanese government bonds, etc.))/consolidated gross core banking profit *3 Shareholder equity basis; formula: Profit attributable to owners of parent/Average balance of shareholders' equity (simple average of balances at beginning and end of term) *4 Gross core banking profit basis Other major indicators Item FY2017 (Results) Income from customer services (non-consolidated)* -3.8 billion yen 2 FY2020 (Results) *Formula: deposit interest margin income + 1.8 billion yen Fee and commissions income - Operating expenses SAN-IN GODO BANK#42. Branch Network and Summary of Loan Portfolio by Prefecture Branch network and loan balances by region As of March 31, 2021 Shimane Balance of loans (as of March 31, 2021): 3,583.9 billion yen No. of branches 72 Tottori 54 Shimane and Tottori 126 1,024.8 billion yen Hiroshima 5 2.9% Okayama 5 Sanyo region 10 19.3% Hyogo 10 40.1% Osaka 1 Tokyo 1 Other* 1 37.7% Grand total 149 733.1 billion yen 2.0% 13.8% 42.0% 42.2% (Headquarters, branches, and sub-branches) Of which Branch in Branch: 33 * "Other" represents Internet branch. Shimane 72 branches Tottori 54 branches Hyogo 10 branches Osaka Okayama Hiroshima 5 branches 468.7 billion yen 1 branch 238.9 billion yen 5 branches 10.8% 237.6 billion yen 5.2% 0.2% 0.6% 0.0% 0.1% 357.6 billion yen 0.0% 0.5% 21.9 % 31.4% 77.6 % ☐ Corporates ☐ Individuals ☐ Local public Financial organizations, etc. institutions 3 0.0% 0.5% 68.1% 94.0% Tokyo and others: 523.0 billion yen 89.1% SAN-IN GODO BANK#53. Yields on Loans and Bills Discounted by Region and Market Shimane and Tottori 4.0% Sanyo region 4.0% Non- corporate Corporate 2.03% 1.86% 1.75% 2.0% 1.66% 1.59% 2.0% 1.70% 1.48% 1.32% 1.22% 1.15% 中 1.54% 1.41% 1.35% 1.34% 1.31% 中 0.90% 0.82% 0.83% 0.89% 0.76% 0.0% 0.0% FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 Hyogo and Osaka Tokyo 4.0% 4.0% 2.86% 2.66% 1.90% 1.70% 2.0% 1.55% 1.46% 1.41% 2.0% 1.86% 1.89% 1.28% 다 0.40% 0.43% 0.45% 0.48% 0.48% 0.86% 0.83% 0.82% 0.81% 0.75% 0.0% 0.0% FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 4 SAN-IN GODO BANK#60.0 Manufacturing 200.0 100.0 Mar. 31, 2020 Mar. 31, 2021 Services Real estate Wholesale and retail LO 300.0 Local governments Finance and insurance 400.0 Rental (Billion yen) 500.0 Transport and postal activities Construction Utilities 4. Loan Balance by Industry Telecommunications Agriculture and forestry Fishery Mining and quarrying of stone and gravel SAN-IN GODO BANK Other (non-resident clients, etc.) * Excludes individual loans#75. Changes in NPL Disposals by Factor FY2016 FY2017 FY2018 FY2019 (Billion yen) FY2020 Factors A. Recognition of NPLs (Bankrupt: Normal or Tagged ⇒ Virtually bankrupt or legally bankrupt) B. Recognition of NPLs (Bankrupt: Deemed bankrupt (*1) 0.3 1.0 1.2 1.8 1.6 0.3 0.3 0.5 0.4 0.3 ⇒ Virtually bankrupt or legally bankrupt) Recognition of NPLs (total for A and B) 0.7 1.3 1.8 2.3 2.0 C. Downgraded customers (Deteriorating performance: Normal or Tagged ⇒ Deemed bankrupt) 2.2 1.5 1.9 2.0 2.2 D. Upgraded customers (1.2) (0.4) (1.0) (0.4) (0.5) Upgraded and downgraded customers (total for C and D) 0.9 1.1 0.8 1.5 1.6 E. Changes in collateral value F. Changes in reserve ratio (Deemed bankrupt borrowers) G. Individual calculations H. Debt sold I. Debt forgiveness 0.0 0.0 0.1 0.1 0.0 (0.0) (0.2) (0.0) (0.1) (0.1) 1.4 0.4 0.9 1.9 2.8 0.0 0.0 1.0 1.0 (0.2) (0.0) (0.0) (0.1) |J. Other (rehabilitation, collection, etc.) (1.4) (2.3) (0.7) (1.1) (1.3) Other (total for E through J) Subtotal (0.0) (1.9) 0.4 0.9 1.1 1.6 0.5 3.1 4.8 4.8 K. Joint responsibility system (reserves and accrued expenses) 0.0 0.1 0.2 0.2 0.0 L. Other 0.0 0.0 0.0 (0.0) 0.0 Total NPL disposals (*2) 1.7 0.6 3.3 5.0 4.8 <Reference> FY2016 (*2) Table shows net amount including reversals from reserve for possible loan losses. ((1) + (2)) 6 (*1) Standard for calculating reserve for possible loan losses was revised. NPL disposal amount on Income statements (1) Transfer to reserve for possible loan losses Transfer to general reserve for possible loan losses Transfer to specific reserve for possible loan losses (2) 0.1 (0.4) (1.9) 1.5 SAN-IN GODO BANK#86. Changes in Delinquency Rate for Loans Delinquency rate for individual loans Delinquency rate for business lending 1.5% 1.5% 1.0% 0.5% 0.0% 0.44% 0.40% 0.39% 0.32% 0.57% 0.45% Individual loans 1.12% 1.06% 1.03% 1.0% 0.95% 0.92% 1.03% 0.97% 0.84% 0.81% 0.93% 0.5% 0.31% * Based on number of delinquent loans at month-end * Delinquency rate is based on total amount of loans. End-Mar. End-Sep. End-Mar. End-Sep. End-Mar. End-Sep. End-Mar. 2018 2018 2019 2019 2020 2020 2021 7 0.0% 0.83% Of which, housing loans 0.87% 0.78% 0.77% * * Based on number of delinquent loans at month-end Delinquency rate is based on total amount of loans. End-Mar. End-Sep. End-Mar. End-Sep. End-Mar. End-Sep. End-Mar. 2018 2018 2019 2019 2020 2020 2021 SAN-IN GODO BANK#97. Individual Loans: Credit Cards Yields on individual loans Balance of housing loans (Billion yen) 10.0% 9.85% 10.11% 10.33% 10.48% Card loans (excl. education loans) 800.0 8.0% 761.0 716.7 663.1 608.6 Fixed interest rate over whole term 6.0% 609.9 574.4 400.0 518.5 456.3 3.55% 3.44% 3.41% Consumer loans 4.0% 3.29% Card loans (education loans) Fixed interest rates for 2.0% 3.01% 2.92% 2.84% 2.81% Housing loans other terms and variable rate 152.2 144.6 142.2 151.0 1.31% 1.22% 1.15% 0.0% End-Mar. End-Mar. 2018 2019 End-Mar. 1.10% End-Mar. 0 2020 2021 End-Mar. 2018 End-Mar. 2019 End-Mar. 2020 End-Mar. 2021 Monthly credit-card use (Thousand yen) 36 34 =4 32 32 33 33 33 33 35 35 55 Credit card use rate by month 60.0% 57.8% 56.8% 56.8% 55.9% 55.0% 50 30 50.0% FY2017 FY2018 FY2019 FY2020 FY2017 FY2018 FY2019 FY2020 8 SAN-IN GODO BANK#108. Shareholders' Equity Capital adequacy ratio (Billion yen) 400.0 13.32% 12.52% 11.97% Non-consolidated capital adequacy ratio 200.0 15.0% 10.0% 302.6 310.0 316.5 5.0% Capital allocation (Billion yen) 300.0 Reserved capital: 205.3 I End-Dec. 2020 Non- consolidated 150.0 equity capital: 318.1 Buffer: 6.7 Operational risk: 9.3 Non- consolidated equity capital Allocable capital: 112.8 Credit risk: 55.8 Securities risk: 41.0 0.0 0.0% 0 FY2018 FY2019 FY2020 Allocation resources Allocable capital Breakdown of, allocation 9 SAN-IN GODO BANK#119. FY2021 Income Plans (1) Plans for interest income (Billion yen) FY2020 (Results) FY2021 (Planned) vs. FY2020 Average Average Average Yields Interest Yields Interest Yields Interest Loans and bills discounted balance 3,458.4 balance balance 1.01% 34.9 3,697.9 0.98% 36.4 239.5 -0.03% 1.5 Domestic business section 3,346.4 1.00% 33.6 3,529.3 0.96% 34.1 182.9 -0.04% 0.5 International business sections 111.9 1.17% 1.3 168.6 1.36% 2.2 56.7 0.19% 0.9 Securities 1,697.5 1.21% 20.6 1,798.2 1.11% 20.0 100.7 -0.10% (0.6) Domestic business section 1,371.9 1.07% 14.8 1,443.4 1.00% 14.4 71.5 -0.07% (0.4) International business sections 325.5 1.80% 5.8 354.8 1.56% 5.5 29.3 -0.24% (0.3) Deposits, etc. 4,458.1 0.02% 1.2 4,856.7 0.01% 0.9 398.6 -0.01% (0.3) (deposits + certificates of deposit) Domestic business section 4,397.7 0.02% 1.0 4,806.9 0.01% 0.8 409.2 -0.01% (0.2) International business sections 60.4 0.25% 0.1 49.8 0.20% 0.1 (10.6) -0.05% (0.0) Other investment-Funding 0.4 0.7 0.3 Interest income 54.8 56.3 1.5 10 SAN-IN GODO BANK#1210. FY2021 Income Plans (2) Plans for income from fees and commissions (Billion yen) FY2021 FY 2017 FY2018 FY2019 FY 2020 Planned Commission income from exchange transactions 2.5 2.4 2.4 2.5 2.6 Other commission income 8.1 8.3 7.9 8.0 9.8 Commission from assets under management 1.8 1.7 1.0 1.5 2.2 Business support-related commission 1.1 1.3 1.5 1.3 1.9 Credit card-related commission 1.3 1.3 1.3 1.3 1.6 Other 3.8 3.8 3.8 3.7 4.0 Total income from fees and commissions 10.7 10.8 10.3 10.6 12.5 Plans for income from customer services (Billion yen) 6.0 Planned 5.3 1.0 1.8 (0.3) (3.8) (3.4) (4.0) FY2017 FY2018 FY2019 11 FY2020 FY2021 SAN-IN GODO BANK#1311. Community Revitalization/Community Creation Community Revitalization/Community Creation Solutions for issues facing individuals Support for comfortable living Support for IT adoption ICT consulting services Solutions for issues facing businesses Recovering and improving business added value October 2020- Management challenges confronting customers • Effective use of information • Steps toward adopting ICT Enhanced internal communication • Improving business efficiency • Developing customer databases • Sharing employee schedules . . Advancing paperless initiatives Community support in response to COVID-19 Community support through the Duo Card March- August 2021 ごうぎんのクレジットカードを使って 5,000 Duoカードで応援! Love しよう! キャンペーン 500円 2021 3/100 310 0ます。 20% MineWeb ポイントで還元します! エントリー! Duo Card supports the community: #WeLoveSan- InCampaign Duo Card vitalizes the community: Go To Eat Campaign ■The Duo Card is used in these campaigns to support the hospitality and food service industries in our San- In community This has served as an opportunity to contribute to local industry and to help people learn more about the attractions of the two local prefectures. July- October Solutions for issues facing communities Demonstrating functions within the community economic ecosystem Entrepreneurial support and improving regional attractiveness Revitalization project in central business district of Yonago Joint efforts with local governments, private businesses (media), educational institutions, and various other related institutions to address the community's need to revitalize the hollowed-out central business district by holding a contest for business ideas by businesspeople seeking to start and develop businesses in vacant stores Five contestants from the two past events have opened new stores. 12 2019 Contestants draw on crowdfunding to help raise funds. This program was recognized by an award by the Cabinet Office for a Distinctive Initiative in community development (FY2020) as a project to revitalize the central business district based on advice provided by industry, government, academic, and financial consultants. ■This award has been granted annually since FY2015 to recognize outstanding [【March 2021 award ceremony) projects selected from those belonging to financial institutions across Japan aiming to revitalize their communities. ■ The program has drawn praise as an example of efforts to find solutions for community issues through organic joint efforts among diverse stakeholders within the community. ■This is the fourth Bank program to win this award, which we have won for three consecutive years—the best performance of any financial institution in the San-In region. 「令和2年度 地方創生に資する金融機関等の特徴的な取組事例」 地方創生担当大臣表彰 合和3年3月30日 Photo courtesy: Cabinet Office Community/ Residents/Employment Development Division Secretariat SAN-IN GODO BANK ごうぎん#1412. Promoting ESG Management: SDG promotion and awareness-raising initiatives SDG promotion and awareness-raising initiatives National Parks Official Partnership concluded with the Ministry of the Environment As a National Parks Official Partner, the Bank partners with the Ministry of the Environment and other related government agencies and other parties to promote understanding of environmental conservation and use of national parks. The Bank is the first financial institution in the Chugoku region to become a National Parks Official Partner. Details of initiatives Implementing forestry conservation activities and coastal cleanup activities (ongoing) ✓ Providing information on national parks through Bank-organized seminars, Supporting the practice of environmental management through financial instruments and services Support for J-Credit promotion and mediation (since 2010) ■The Bank has been certified as a J-Credit regional coordinator by local governments including Tottori Prefecture, Nichinan Town in Tottori Prefecture, and Yabu City in Hyogo Prefecture. ■Through proactive J-Credit sales support and mediation in trading agreements, we support corporate environmental activities. J-Credit sales performance (cumulative) National Parks Official Partner Signing ceremony (courtesy Ministry of the Environment) Volume (t-CO2) 4,500 2,901 3,840 Units (credits) 4,272 100 92 training sessions, etc. Communicating the appeal of national parks and other related information 2,500 1,991 55 55 Supporting the community contribution activities of our customers through financial products Gogin SDGs Private Placement Bonds Gogin SDGs Private Placement Bonds for community vitalization in Shimane and Tottori prefectures ■Donating to Tottori and Shimane prefectural governments for COVID-19 response through private placement bonds Supporting the contributions to community solutions of the issuing firms related to COVID-19 and other issues Gogin SDGs Private placement Bonds for donations to medical institutions ■Donating to medical institutions designated to provide care for virus infections outside Shimane and Tottori prefectures through private placement bonds ■Supporting the contributions of issuing firms to community healthcare The Bank jointly donates an amount equal to 0.2% of the issue price of the bonds. Issuing company The Bank Shimane Prefecture Tottori Prefecture Medical institutions Donations used for COVID-19 response and other measures 13 915 18 500 10 FY2014 FY2017 FY2018 FY2019 FY2020 Promoting a low carbon society through financial brokerage functions Supporting the recommendations of the Task Force on Climate- related Financial Disclosures (TCFD) We have declared our support for the TCFD recommendations to help achieve a low carbon society while ascertaining and evaluating the risks and opportunities that climate change presents to customers and the Bank. In addition to striving to enhance disclosure, we proactively support efforts by communities and customers to address climate change through decarbonization, applying financial brokerage functions in areas such as investment and finance activities. TCFD TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES SAN-IN GODO BANK#1513. Promoting ESG Management: Initiatives within the Organization Organizational vitalization Work style reforms: enhancing work-life balance ■Implementing work style reforms to build a human resource structure and train human resources capable of contributing to the community ■Launching flextime employment system and telework in April 2021 ■We are also considering adopting a system that would allow second jobs. We were named to the Top Health Management Companies 2021 (White 500) (Major Corporation Category). We have been named to the list of Top Health Management Companies chosen by the Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi for the third year in a row. ✓ In the SMEs Category, Group member companies San-In General Lease, Matsue Real Estate, Gogin Business Services, Gogin Credit, San-in Servicer, and San-in Office Services were also named to this list for the second year in a row. Activities to help train the young 2021 健康経営優良法人 Health and productivity ホワイト 500 Shofukan private school (Since 2012) ■ Operated by Gogin Shimane Cultural Promotion Foundation ■Seeking to cultivate highly motivated human resources capable of shining in future society ■The fourth generation of 20 students enrolled in April 2021, resulting in a total of 50 current students. 14 Supporting independence and participation in society of people with disabilities Gogin Challenged (Since 2007) Gogin Challenged Matsue (Since September 2007) Gogin Challenged Tottori (Since September 2017) People with intellectual disabilities work in specific jobs. ■ Supports employment of people with disabilities in communities based on Yumeiku Work Support Services. Mainly mentally challenged people and people with developmental disorders work. Handles a wide range of operations including work demonstrating IT skills. Joining the international Valuable 500 initiative to promote opportunities for people with disabilities Based on the concept of inclusive businesses building an inclusive society, this international initiative supports the activities of people with disabilities through action by businesses around the world to enable them to demonstrate potential business, social, and economic value. We believe participation in this initiative will build on our existing efforts. The initiative is seeking 500 corporate sponsors worldwide. We are one of only two regional banks among the 50 sponsors in Japan. The Valuable 500 SAN-IN GODO BANK#1614. Promoting ESG Management: Other Community Contribution Activities Social and cultural contribution activities Gogin One Grain of Wheat Association (since 1981) ■Established to mark the 40th anniversary of the Bank's founding, this program involves sustained fundraising and donation activities by Group executives and employees. ■Through March 31, 2021, the program had donated wheelchairs, televisions, and other gifts worth 124.93 million yen to 1,189 recipients, including local welfare facilities. Donating hand soap and masks In December 2020, we donated 4,110 containers of hand soap and 50,000 masks to elementary schools in Shimane and Tottori prefectures to help safeguard and educate future generations in the face of the COVID-19 pandemic. Participating in the Small Kindness Movement (since 1997) We serve as the secretariat for this movement, which deploys a wide range of activities, such as encouraging people to exchange pleasant greetings with each other and cleaning up the islands of Japan, based on the Creating a Culture of Small Kindnesses slogan. In May 2021, the Nemu no Kai organization promoted by the San-In Office of the Small Kindness Movement was presented with an award recognizing the six millionth participant in Japan. [Nemu no Kai] • • Has implemented activities over many years to protect children and the elderly within the community. Promotes efforts to pass on culture to the next generation through intergenerational interactions and other activities. Promoting environmental protection activities in cooperation with local communities Forest Conservation Activity (since 2006) The San-in Godo Bank's forest conservation activities (Gogin Green Project) Gogin Forests of Hope Practical forest conservation activities undertaken by Bank officers, employees, and their families in six forests in Shimane and Tottori Save the Forest! San-in Network Conference Established with membership, including volunteer groups and non- profit organizations in Shimane and Tottori Volunteer phragmite cutting activities (since 2013) The Bank participates in volunteer phragmite cutting activities to improve the water quality of Lake Shinji. 森を守ろう GOGIN GREEN PROJECT CONLARG 朝 GOGIN GREEN This helps prevent slime, the buildup of sedimentation on the lake bottom, and flows into the lake of nitrogen and phosphor absorbed by phragmites. 15 SAN-IN GODO BANK#17Ref. 1. Major Statistics for Shimane and Tottori Shimane Tottori Total of Japan ◇ Total population: 674 thousands (46th in Japan) ◇ Percentage of elderly in population: 34.3% (4th in Japan) ◇ Number of business establishments: 34,987 (46th in Japan) Gross prefectural product: 2.4 trillion yen (45th in Japan) ◇ Shipment value of manufactured goods: 1,273.2 billion yen (44th in Japan) ◇ Ratio of public fixed capital formation to gross prefectural product: 8.9% (8th in Japan) Sources: ◇ Total population: 556 thousands (47th in Japan) ◇ Percentage of elderly in population: 32.0% (16th in Japan) Number of business establishments: 25,718 (47th in Japan) ◇ Gross prefectural product: 1.8 trillion yen (47th in Japan) ◇ Shipment value of manufactured goods: 805.5 billion yen (45th in Japan) ◇ Ratio of public fixed capital formation to gross prefectural product: 9.9% (6th in Japan) ◇ Total population: 126.16 millions ◇ Percentage of elderly in population: 28.1% Number of business establishments: 5.34 millions Gross domestic product: 547.5 trillion yen ◇ Shipment value of manufactured goods: 331.8 trillion yen ◇ Ratio of public fixed capital formation to gross domestic product: 5.0% "2019 Population Estimates" and "2016 Economic Census" by the Ministry of Internal Affairs and Communications; a preliminary report of "2019 Census of Manufactures" by the Ministry of Economy, Trade and Industry; and "FY2017 Annual Report on Prefectural Accounts" and "Annual Revision of GDP for FY2017" by the Cabinet Office. Nominal values are used for gross prefectural products, gross domestic product and public fixed capital formation. 16 SAN-IN GODO BANK#18Ref. 2. Economic Environment in Shimane and Tottori Rank Prefecture Actual amount (billion yen) Share Shimane and Tottori's share of GDP Shares of individual sectors in gross prefectural product Sanyo Region and Hyogo: Mainly operated by private and manufacturing sectors Shimane and Tottori: Dependent on public works and construction 1st Tokyo 106,238.2 18.92% 2nd Aichi 40,299.7 7.18% Other 56.7 59.5 3rd Osaka 40,069.9 7.14% 63.1 65.2 6th Hyogo 21,328.8 3.80% 12th Hiroshima 11,790.8 2.10% 21st Okayama 7,813.1 1.39% 45th Shimane 2,472.9 0.44% Manufacturing 21.8 23.0 15.8 29.4 2.3 47th Tottori 1,896.6 0.34% 7.2 Agriculture, (35th) Shimane and Tottori forestry and 1.1 4,369.5 0.78% 0.9 fishery 0.5 Construction 5.7 (2nd) Total of Shimane, Tottori, Sanyo region 4.7 45,302.4 8.07% 4.3 and Hyogo 15.1 - Total of all prefectures 561,523.3 Source: "FY2016 Annual Report on Prefecture Accounts" by the Cabinet Office. Standings in parentheses indicate rankings when prefectures are added together. Government 100.00% service 8.3 7.0 producers Total Japan Hyogo Sanyo region Shimane and Tottori 8.4 17 SAN-IN GODO BANK#19Ref. 3. Direction of Economy in Shimane and Tottori (1) ■Business Sentiment Index (BSI): Change over previous period in all industries (Percentage of companies reporting "rising" conditions minus those reporting "falling") 80.0 1 Percentage of "Rising" ■Values of public works contracts (in Shimane and Tottori; coverage ratio: approx. 70%) (Billion yen) 400.0 Estimated Fall Rise 2 Percentage of "Falling" BSI (1-2) 40.0 31.4 30.6 24.5 25.4 23.0 22.3 23.2 23.7 24.1 19.4 19.3 20.4 12.5 7.2 5.0 30.1 300.0 266.1 18.3 258.4 249.5 246.6 223.3 230.1 228.0 224.3 212.9 0.0 14.2). (5.0) 200.0 (6.9) (1.2) (7.7) (5.1) (12.0) (9.9) (11.2) (12.0) (11.6) (14.6) 24.2 25.6 27.1 30.4 -40.0 28.3 30.9 30.6 32.4 34.2 34.3 34.0 31.3 32.9 100.0 38.7 (43.8) 56.3 281.8- 248.7 -80.0 0.0 1H/ 2H FY2014 1H/ FY2015 2H 1H/ FY2016 2H 1H/ FY2017 2H 1H/ FY2018 2H 1H/ FY2019 2H 1H/ FY2020 '2H 1H/ FY2021 Source: "Business Trend Survey" by the San-in Godo Bank (Most recently conducted in March 2021) Year-on-year changes in capital expenditure (in Shimane and Tottori) FY2010 11 Source: West Japan Construction Surety Co., Ltd. New housing starts (in Shimane and Tottori) 12 13 14 15 1116 17 188 19 20 20 (%) (Units) 10,000 FY2018 FY2019 Results Results FY2020 Results/Planned FY2021 Planned All industries 5.3 15.6 (27.3) 12.3 8,000 6,793 Small- and 6,334 medium-sized 30.8 40.1 (33.1) (1.9) 6,265 6,331 companies 5,846 5,637 5,830 6,000 --5,391 5,457 Manufacturers (4.3) 14.2 (29.6) 18.5 5,138 4,603 Small- and medium-sized 14.5 50.2 (33.9) (5.7) 4,000 companies Non- 34.1 18.2 (23.2) 1.9 manufacturers 2,000 Small- and medium-sized 58.7 29.9 (32.1) (2.3) companies 0 March 2021) Source: "Business Trend Survey" by the San-in Godo Bank (Most recently conducted in 18 12 13 14 15 16 17 18 19 20 FY2010 11 Source: Ministry of Land, Infrastructure, Transport and Tourism SAN-IN GODO BANK#20Ref. 4. Direction of Economy in Shimane and Tottori (2) Year-on-year changes in sales of large retails stores (Department stores and supermarkets) (%) 2.0 0.0 (2.0) (4.0) (6.0) (8.0) 2015 2016 ■Industrial Production Index (Year 2015 = 100) 120.0 Tottori Shimane Japan 2017 2018 Source: Ministry of Economy, Trade and Industry; the San-in Godo Bank Year-on-year changes in sales of new passenger vehicles (%) 20.0 10.0 0.0 (10.0) 110.0 100.0 90.0 80.0 2019 2020 Tottori Shimane Japan 2016 2017 2018 2019 2020 2015 Source: Statistics Dept. of Tottori Prefecture; and Statistical Survey Dept. of Shimane Prefecture Active Job Opening to Applicant Ratio (times) 1.80 Tottori Shimane Japan 1.60 1.40 1.20 1.00 (20.0) 0.80 2015 2016 2017 2018 2019 2020 2015 Source: Japan Automobile Dealers Association; Japan Mini Vehicles Association; Tottori Branch and Shimane Branch of Chugoku Transport & Tourism Bureau 19 2016 Tottori =DShimane 2017 2018 2019 Japan 2020 Source: Ministry of Health, Labour and Welfare; Employment Security Dept. of Tottori Labor Bureau; and Employment Security Dept. of Shimane Labor Bureau SAN-IN GODO BANK#21Ref. 5. Direction of Economy in Shimane and Tottori (3) Number of bankruptcies by industry (in Shimane and Tottori) Number of hotel guests at major hot spring spas* (in Shimane and Tottori) Actual number (cases) 2018 YoY change (%) 2019 2020 2018 2019 2020 Composition ratio (%) 2018 2019 2020 (Thousands) 2,000 Agriculture, forestry, 1,800 2 4 2 100.0 100.0 (50.0) 4.3 6.6 3.9 1,699 fishery and mining 1,628 Construction 6 10 6 (40.0) 66.7 (40.0) 12.8 16.4 11.8 1,600 1,526 Manufacturing 10 Wholesale Retail 059 11 6 25.0 10.0 (45.5) 21.3 18.0 11.8 5 5 400.0 0.0 0.0 10.6 8.2 9.8 1,400 12 12 (35.7) 33.3 0.0 19.1 19.7 23.5 Finance & insurance 0 0 0 0.0 0.0 0.0 1,200 Real estate 1 3 2 0.0 200.0 (33.3) 2.1 4.9 3.9 Transportation 1 1 0.0 0.0 0.0 2.1 1.6 2.0 1,000 Telecommunications 1 0 1 (50.0) (100.0) 2.1 0.0 2.0 Services, etc. 12 15 Total 471 61 16 (42.9) 25.0 6.7 51 (20.3) 29.8 (16.4) 25.5 24.6 31.4 100.0 100.0 100.0 800 2010 11 Source: TOKYO SHOKO RESEARCH, LTD. 1,848 1,705 1,644 1,648 1,568 1,521 1,542 976 12 13 14 15 16 17 18 19 2020 * Total of guests at major hot spring spas in Misasa, Kaike, Hawai-Togo, Matsue Shinjiko and Tamatsukuri Source: Survey by the San-in Godo Bank Land prices of major commercial areas (as of Jan. 1 of each year) (Upper: Assessment price: Thousand yen/m², Lower: YoY %) Number of tourists Tottori (2019) (Thousands, %) Shimane (2019) (Thousands, %) Actual number: Change over Area name Tourist sites and facilities of visitors 2018 2016 2017 Actual number Change over of visitors 2018 2018 2019 2020 Tottori sand dunes/Inaba Hot 2,949 9.8 Izumo Taisha Shrine 6,340 7.3 Spring Village area Wakasa Kaido Street 110 110 110 105 105 Sakaiminato area 1,845 3.4 Hinomisaki 1,094 17.9 Sakae-machi, Tottori City, Tottori (4.3) 0.0 Tottori Nashinohana Hot Spring 0.0 (4.5) 0.0 1,168 0.2 Cape Mihonoseki 850 11.7 area Principal Prefectural Road 96 95 96 95 95 95 Mt. Daisen area 1,084! 1.3 Shimane Winery 729 1.9 95 95 "Yonago Teishajo-Line Road" Yonago/Kaike Hot Spring area 1,024 3.6 Adachi Museum of Art 648 2.6 Meiji-cho, Yonago City, Tottori (1.0) (1.0) 0.0 00 0.0 0.0 Yazu area 779 2.8 Tamatsukuri Hot Spring 615 3.7 Eki-dori 135 135 135 135 140 Higashi Hoki area 640 7.6 Taikodani Inari Shrine 604 8.9 Asahi-machi, Matsue City, Uradome Coast area/lw ai Hot 456: 2.9 Iwami Seaside Park 562 4.0 |Shimane 0.0 0.0 0.0 0.0 3.7 Spring area Okuhino area 183 17.3 Matsue Castle Park 517 9.8 Source: Hiroshima Regional Taxation Bureau Matsue Suigosai Festival 480 12.1 20 Source: Tourism Department, Culture & Tourism Bureau of Tottori Prefecture; and Tourism Promotion Section, Department of Commerce-Industry & Tourism of Shimane Prefecture SAN-IN GODO BANK#22Numerical Data The San-in Godo Bank, Ltd.#23Consolidated profit and loss Numerical Data 1 (Million yen) FY2016 FY2017 FY2018 FY2019 FY2020 YoY change Sep. 2016 Sep. 2017 Sep. 2018 Sep. 2019 Sep. 2020 Consolidated gross income 31,384 58,288 30,069 58,913 26,999 59,208 30,244 62,315 30,619 61,111 -1,204 Excl. Net gain related to bond transactions 31,400 63,347 31,627 63,377 31,082 62,732 30,496 63,073 30,329 63,746 673 Net interest income 27,100 54,157 26,271 52,645 26,224 52,983 26,205 53,946 26,538 54,724 778 Net fees and commissions 3,422 7,088 3,564 7,167 3,660 7,350 3,224 7,051 2,963 7,170 119 Other income 860 -2,957 233 -898 -2,885 -1,125 814 1,318 1,118 -783 -2,101 Net gain related to bond transactions -16 -5,059 -1,558 -4,463 -4,082 -3,523 -252 -757 290 -2,634 -1,877 General and administrative expenses 20,944 41,230 20,989 41,242 20,882 40,867 20,580 41,057 20,425 40,262 -795 Credit costs (1)+(2)-(3) 340 -228 115 1,199 1,250 4,034 986 5,374 2,711 7,333 1,959 Transfer to general reserve for possible loan losses (1) -482 -388 350 648 456 -34 197 -476 2,300 2,103 Bad debt expenses (2) 822 190 Loans written-off 7 29 22 504 848 602 3,578 1,020 5,177 3,188 5,032 -145 3 11 3 14 4 20 6 19 -1 Transfer to specific reserve for possible loan losses 743 425 225 390 3,188 919 4,727 3,134 4,859 132 Loss on sale of delinquent loans 6 76 45 437 71 152 65 216 52 102 -114 Reversal of allowance for loan losses (3) 419 Net gain related to stock transactions 818 2,658 1,238 2,861 4,118 4,128 -49 1,262 -151 856 -406 Others 462 617 329 Ordinary profit 11,380 20,562 10,531 534 19,867 674 859 726 -889 622 67 956 9,659 19,294 9,354 16,256 7,954 14,439 -1,817 Extraordinary profit (loss) Profit before income taxes -175 11,205 -195 -69 -182 -91 -114 -201 -968 -252 -272 696 20,366 10,462 19,685 9,568 19,179 9,153 15,288 7,701 14,167 -1,121 Income taxes, current 3,803 6,163 3,108 5,445 3,086 6,819 2,989 5,904 2,694 5,603 -301 Income taxes, deferred -259 432 11 532 -227 -872 -200 -1,112 -275 -1,102 10 Profit attributable to non-controlling interests 343 371 9 14 41 27 7 29 -25 -11 -40 Profit attributable to owners of parent 7,318 13,399 7,333 13,692 6,668 13,205 6,356 10,467 5,307 9,679 -788 Non-interest revenue ratio (%) ROE (Shareholders' equity basis) (%) 13.69 5.07 14.50 4.61 16.93 4.86 16.93 4.51 15.62 4.27 15.54 14.07 14.47 12.49 14.15 -0.32 4.21 3.96 3.25 3.24 2.94 -0.31 * 1. Consolidated gross income = (Interest income - Interest expenses) + (Fees and commissions income - Fees and commissions expenses) + (Other income - Other operating expenses) 2. Non-interest revenue ratio = (Fee and commissions income + Other income (excl. Net gain related to bond transactions)) / Consolidated gross income (excl. Net gain related to bond transactions) x 100 3. ROE (Shareholders' equity basis) = Profit attributable to owners of parent/Average balance of shareholders' equity (Simple average of balances at beginning and end of term) x 100 (The six month-period figure shall be annualized for the 1H.)#24Non-consolidated profit and loss FY2016 FY2017 FY2018 FY2019 FY2020 Numerical Data 2 (Million yen) YoY change Sep. 2016 Sep. 2017 Sep. 2018 Sep. 2019 Sep. 2020 Gross banking profit 29,881 55,215 28,320 55,211 25,257 56,019 28,922 59,554 29,477 58,659 -895 Gross core banking profit 29,897 60,257 29,876 59,652 29,334 59,521 29,173 60,302 29,184 61,283 981 Domestic gross banking profit 26,853 53,149 25,622 52,235 26,291 54,208 26,224 53,868 26,134 51,300 -2,568 Net interest income 24,216 48,029 23,506 47,041 23,451 47,599 23,879 48,815 23,521 47,980 -835 Net fees and commissions 2,624 5,597 3,013 5,982 2,993 6,249 2,761 5,906 2,350 6,019 113 Other income 12 -477 -897 -789 -153 358 -416 -853 261 -2,698 -1,845 International gross banking profit 3,028 2,065 2,698 2,976 -1,034 1,810 2,698 5,686 3,343 7,358 1,672 Net interest income 3,034 6,352 3,204 6,104 2,884 5,544 2,403 5,246 3,101 6,877 1,631 Net fees and commissions -16 -43 -22 -46 -31 -48 -17 71 50 199 128 Other income 10 -4,243 -483 -3,081 -3,886 -3,685 311 368 191 282 -86 Expenses (Excl. non-recurring items) 18,712 36,931 18,691 36,835 18,776 36,978 18,964 37,900 18,690 37,129 -771 Effective net banking profit 11,169 18,283 9,629 18,375 6,480 19,040 9,958 21,653 10,787 21,530 -123 Core net banking profit 11,185 23,325 11,185 22,816 10,557 22,543 10,209 22,402 10,493 24,153 1,751 Core net banking profit (Excl. net gains on cancellation of investment trusts) 10,678 22,818 11,049 22,680 10,557 22,162 8,634 19,151 10,428 24,089 4,938 Transfer to general reserve for possible loan losses (1) -420 -58 826 578 -5 Net banking profit 11,589 18,283 9,629 18,433 5,653 18,461 9,963 Net gain related to bond transactions -16 -5,041 -1,556 -4,440 -4,077 -3,502 -250 192 21,460 -748 -477 2,392 2,200 11,264 19,137 -2,323 293 -2,623 -1,875 Unusual profit and loss -890 1,186 581 830 3,515 798 -733 -5,552 -3,227 -5,245 307 Net gain related to stock transactions 219 2,021 1,175 2,753 4,047 4,086 -49 1,265 -172 840 -425 Bad debt expenses (2) 698 155 53 686 534 3,390 962 5,042 3,043 4,853 -189 Loans written-off 1 -1 Transfer to specific reserve for possible loan losses 626 158 361 3,072 891 4,685 3,020 4,726 41 Loss on sale of delinquent loans Reversal of allowance for loan losses (3) 6 71 24 353 35 96 40 142 29 76 -66 416 20 Ordinary profit 10,689 Extraordinary profit (loss) -174 Income before income taxes 10,515 19,450 -202 19,247 10,209 19,262 -73 -188 9,168 -85 19,259 -108 9,229 -193 15,906 8,036 13,891 -2,015 -859 -1,248 -1,300 -441 10,136 19,073 9,083 19,150 9,035 15,047 6,788 12,590 -2,457 Income taxes, current Income taxes, deferred Net income 3,287 -207 7,435 5,390 2,929 5,118 2,942 6,491 2,866 5,811 2,648 5,390 -421 470 13,385 12 7,194 598 13,357 -151 -836 -135 -1,242 -236 -1,125 117 6,292 13,495 6,303 10,478 4,376 8,325 -2,153 Credit costs (1)+(2)-(3) 277 -260 33 628 1,361 3,969 957 5,234 2,566 7,246 2,012 OHR (%) 62.58 61.29 62.56 61.75 64.00 62.12 65.00 62.85 64.04 60.58 -2.27 1. Gross core banking profit = Gross business income - Net gain related to bond transactions 2. Effective net banking profit = Net banking profit + Transfer to general reserve for possible loan losses 3. Core net banking profit = Effective net banking profit - Net gain related to bond transactions 4. OHR = Expenses / Gross business income × 100#25ROA ROE Numerical Data 3 (%) FY2016 FY2017 FY2018 FY2019 FY2020 YoY change Sep. 2016 Sep. 2017 Sep. 2018 Sep. 2019 Sep. 2020 0.27 0.24 0.25 0.23 0.21 0.23 0.22 0.18 0.14 0.13 -0.05 4.17 3.83 4.11 3.83 3.57 3.77 3.40 2.93 2.42 2.31 -0.62 Net interest margin (Domestic operation) 0.31 0.31 0.28 0.29 0.27 0.30 0.28 0.30 0.25 0.27 -0.03 Yield on interest-earning assets 1.18 1.15 1.10 1.09 1.04 1.07 1.07 1.07 0.94 0.94 -0.13 Loans 1.25 1.22 1.14 1.12 1.08 1.07 1.04 1.04 1.00 1.00 -0.04 Securities 1.30 1.26 1.25 1.24 1.16 1.26 1.40 1.42 1.05 1.07 -0.35 Total funding cost 0.87 0.84 0.82 0.80 0.77 0.77 0.79 0.77 0.69 0.67 -0.10 Deposits 0.06 0.06 0.05 0.05 0.03 0.03 0.02 0.02 0.02 0.02 0.00 ○ Assets (Non-consolidated basis) (Million yen) Sep. 2016 Mar. 2017 Sep. 2017 Mar. 2018 Sep. 2018 Mar. 2019 Sep. 2019 Mar. 2020 Sep. 2020 Change from Mar. 2021 Cash and due from banks 694,488 551,352 526,257 562,846 550,020 Call loans 7,274 36,142 4,488 3,718 1,135 766,292 332 788,863 568,491 658,394 871,417 Mar. 2020 302,926 1,295 Debt purchased 8,037 8,754 8,657 9,197 9,183 9,629 9,828 Trading securities 229 Money held in trust 6,519 Securities 1,915,770 Loans and bills discounted 2,680,805 224 3,996 1,922,061 2,822,492 306 4,005 1,863,275 2,903,883 117 4,000 1,848,466 3,016,546 107 4,008 1,697,591 57 3,036,341 4,000 1,600,463 3,121,051 86 4,973 1,570,722 3,157,824 9,826 89 4,955 1,656,038 9,105 156 4,980 1,776,346 9,639 -187 -89 4,978 1,809,181 23 153,143 3,353,056 3,484,685 3,583,995 230,939 Foreign exchange 2,724 4,317 4,354 4,556 3,017 5,957 4,069 6,324 9,223 9,494 3,170 Other assets 12,321 23,123 44,572 64,147 56,764 53,223 53,153 53,777 50,827 54,870 1,093 Tangible fixed assets 35,287 34,445 34,295 34,191 33,888 33,600 33,275 32,769 31,995 31,725 -1,044 Intangible fixed assets 1,756 1,805 1,656 2,340 2,712 5,205 6,026 5,568 5,159 4,839 -729 Prepaid pension cost 4,783 4,288 4,247 4,299 4,532 4,768 5,171 5,548 5,133 4,643 -905 Deferred tax assets 1,409 -1,409 Customers' liabilities for acceptances and guarantees 17,511 16,456 16,107 14,665 16,476 16,394 14,964 14,290 14,275 13,943 -347 Reserve for possible loan losses -39,430 Reserve for investment loss -69 -37,621 -91 -36,781 -85 -34,159 -23 -34,746 -45 -36,922 -44 -37,144 -40 Total assets 5,348,009 5,391,748 5,379,241 5,534,909 5,380,989 5,584,011 5,613,067 -39,907 -38 5,672,201 -42,393 -42,190 -2,283 -36 -115 6,007,854 6,356,422 -77 684,221#26Numerical Data 4 46,390 43,451 Total disclosed loans Bankrupt and quasi-bankrupt loans (Percentage against total amount) Doubtful loans (Percentage against total amount) Substandard loans (Percentage against total amount) Subtotal (A) |(Percentage against total amount) Normal loans (Percentage against total amount) Preservation (B) (1)+(2) 14,596 (0.50%) 31,677 14,421 11,635 (0.48%) (0.37%) 31,319 30,984 (1.05%) (1.00%) 13,766 (0.44%) 27,261 (0.87%) Sep. 2016 Mar. 2017 Sep. 2017 Mar. 2018 Sep. 2018 Mar. 2019 Sep. 2019 Mar. 2020 Sep. 2020 Mar. 2021 2,741,047 2,886,700 2,973,939 3,089,731 3,117,660 3,216,628 3,253,971 3,458,008 3,591,697 3,698,677 15,959 15,092 14,464 (0.58%) (0.46%) (0.44%) 33,386 28,011 27,260 (1.21%) (1.09%) (0.87%) (0.83%) 14,906 12,164 10,924 11,059 13,161 13,895 16,977 13,238 14,615 (0.54%) (0.42%) (0.36%) (0.35%) (0.42%) (0.43%) (0.52%) (0.44%) (0.36%) (0.39%) 64,253 58,437 56,665 53,678 54,189 56,999 58,702 59,817 61,976 61,568 (2.34%) (2.02%) (1.90%) (1.73%) (1.73%) (1.77%) (1.80%) (1.72%) (1.72%) (1.66%) 2,676,794 2,828,262 2,917,273 3,036,053 3,063,471 3,159,628 3,195,268 3,398,191 3,529,720 3,637,109 (97.65%) (97.97%) (98.09%) (98.26%) (98.26%) (98.22%) (98.19%) (98.27%) (98.27%) (98.33%) 52,982 48,165 (Million yen) Change from Mar. 2020 240,669 16,584 17,043 12,935 (0.47%) (0.47%) (0.34%) 28,013 31,694 34,017 (0.81%) (0.88%) (0.91%) -3,649 (-0.13%) 6,004 (0.10%) 15,218 -603 (-0.05%) 1,751 (-0.06%) 238,918 (0.06%) 43,699 45,551 44,938 47,215 50,199 48,559 1,344 Collateral and guarantees (1) 29,236 25,580 24,650 24,779 25,133 24,341 23,322 23,242 23,828 24,939 1,697 Bankrupt and quasi-bankrupt loans 6,249 5,831 5,508 4,613 5,182 5,604 5,161 5,497 4,741 5,381 -116 Doubtful loans 20,151 17,972 17,601 18,430 17,377 16,164 14,929 14,946 16,538 16,700 1,754 Substandard loans 2,836 1,777 1,539 1,734 2,573 2,572 3,231 2,798 2,548 2,856 58 Reserve for possible loan losses (2) 23,746 22,584 21,739 18,672 18,566 21,209 21,615 23,972 26,371 23,620 -352 Bankrupt and quasi-bankrupt loans 9,710 8,765 8,912 7,021 8,583 9,488 9,303 11,087 12,301 7,554 -3,533 Doubtful loans 10,165 10,846 10,301 9,181 7,380 8,897 9,310 10,092 11,842 13,515 3,423 Substandard loans Coverage ratio (B)/(A) 3,869 82.45% 2,973 2,525 2,469 2,602 2,823 3,002 2,792 2,227 2,550 -242 Bankrupt and quasi-bankrupt loans Doubtful loans Substandard loans Ratio of reserve (2)/((A)-(1)) Bankrupt and quasi-bankrupt loans Doubtful loans Substandard loans 82.42% 81.86% 100.00% 100.00% 100.00% 90.80% 90.97% 89.09% 44.98% 39.04% 37.21% 67.81% 68.73% 67.90% 100.00% 100.00% 100.00% 76.80% 79.14% 75.09% 32.06% 28.62% 26.91% 80.94% 80.64% 79.91% 76.55% 78.93% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 89.11% 90.81% 89.47% 88.91% 89.38% 89.54% 88.82% 38.01% 39.32% 38.83% 36.71% 36.73% 36.07% 64.61% 63.89% 64.94% 61.09% 65.54% 69.12% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 73.13% 74.67% 75.10% 75.50% 77.23% 78.13% 78.05% 26.48% 24.57% 24.93% 21.84% 22.48% 20.83% 21.68% 80.99% 78.87% -0.06% 0.00% -0.56% 36.99% 0.26% 64.48% -1.06% 100.00% 0.00% 0.82% -0.80%#27Numerical Data 5 (Million yen, %) Loan balance by industry Balance Mar. 2017 Mar. 2018 Mar. 2019 Mar. 2020 Mar. 2021 Percentage Balance Percentage Balance Percentage Balance Percentage Balance Change from Mar. 2020 Percentage Balance Percentage Total loans (Excl. special international financial transactions account) Manufacturing 2,822,492 375,636 100.00 3,016,546| 100.00 3,121,051 100.00 3,353,056 100.00 3,583,995 100.00 230,939 13.30 380,461 12.61 385,892 12.36 427,976 12.76 453,645 12.65 25,669 -0.11 Agriculture and forestry 6,370 0.22 8,169 0.27 8,651 0.27 10,234 0.30 10,248 0.28 14 -0.02 Fishery 2,273 0.08 2,920 0.09 2,996 0.09 3,548 0.10 3,437 0.09 -111 -0.01 Mining and quarrying of stone and gravel 1,168 0.04 1,113 0.03 1,233 0.03 1,787 0.05 1,659 0.04 -128 -0.01 Construction 88,303 3.12 96,125 3.18 98,285 3.14 105,381 3.14 130,893 3.65 25,512 0.51 Utilities 56,088 1.98 65,546 2.17 70,577 2.26 94,540 Telecommunications 28,169 0.99 22,791 0.75 20,197 0.64 Transport and postal activities 98,647 3.49 Wholesale and retail 315,110 Finance and insurance 125,264 Real estate and goods rental and leasing 389,239 Services 317,386 Local governments 334,181 106,363 11.16 327,162 4.43 129,556 13.79 450,761 11.24 331,309 11.83 333,496 Others 684,653 24.25 760,769 3.52 112,096 10.84 328,808 4.29 129,809 14.94 465,330 10.98 340,797 11.05 320,213 25.21 836,160 3.59 10.53 23,657 118,731 346,837 4.15 136,461 14.90 497,544 10.91 350,514 10.25 317,123 26.79 918,718 2.81 104,169 0.70 21,021 3.54 10.34 364,448 4.06 137,524 14.83 518,276 10.45 394,037 9.45 288,254 27.39 998,502 2.90 9,629 0.09 0.58 -2,636 -0.12 157,872 4.40 39,141 0.86 10.16 17,611 -0.18 3.83 1,063 -0.23 14.46 20,732 -0.37 10.99 43,523 0.54 8.04 27.86 -28,869 -1.41 79,784 0.47 Foreign and special international financial transactions account Total 2,822,492 - 3,016,546 - 3,121,051 - 3,353,056 - 3,583,995 - 230,939#28Numerical Data 6 Individual loans Housing loans Other loans Sep. 2016 Mar. 2017 Sep. 2017 Mar. 2018 Sep. 2018 Mar. 2019 Sep. 2019 Mar. 2020 Sep. 2020 Mar. 2021 612,780 640,817 674,807 708,222 732,707 765,603 797,789 819,027 836,319 864,056 524,462 548,567 575,533 608,666 630,751 663,133 693,188 716,764 735,755 761,003 88,317 92,249 99,273 99,556 101,956 102,469 104,601 102,262 100,563 103,052 (Million yen) Change from Mar. 2020 45,029 44,239 790 Loans to small and medium-sized companies (Percentage against total amount) Risk managed loans (1) (Percentage against total amount) Loans to borrowers under bankruptcy proceedings (Percentage against total amount) Non-accrual past due loans (Percentage against total amount) Loans past due for three months or more (Percentage against total amount) Loans with altered lending conditions (Percentage against total amount) Reserve for possible loan losses 1,739,461 1,871,110 1,954,865 2,065,121 2,097,223 2,178,285 2,220,450 2,333,118 2,429,940 2,518,776 (64.88%) (66.29%)| (67.31%) (68.45%) (69.07%) (69.79%) (70.31%) (69.58%) (69.73%) (70.27%) 185,658 (0.69%) 63,450 57,775 55,929 (2.36%) (2.04%) (1.92%) 2,052 1,849 2,645 (0.07%) (0.06%) (0.09%) 46,490 53,099 (1.76%) 1,951 (0.06%) 43,761 42,360 40,087 53,780 (1.77%) 2,180 (0.07%) 38,438 (1.73%) (1.55%) (1.45%) (1.32%) (1.26%) 56,567 (1.81%) 2,422 (0.07%) 40,250 (1.28%) 58,309 59,442 61,630 61,371 (1.84%) (1.77%) (1.76%) (1.71%) 2,330 3,870 4,943 2,459 (0.07%) (0.11%) (0.14%) (0.06%) 39,001 40,353 43,447 44,297 (1.23%) (1.20%) (1.24%) (1.23%) 1,929 (-0.06%) -1,411 (-0.05%) 3,944 (0.03%) 413 39 52 (0.01%) 14,492 (0.54%) (0.43%) (0.37%) ( -%) 12,164 ( -%) (0.00%) ( -%) ( -%) (0.00%) ( -%) (0.00%) 10,924 11,058 13,161 13,895 16,938 15,218 13,186 ( -%) 14,615 ( -%) -603 (0.36%) (0.43%) (0.44%) (0.53%) (0.45%) (0.37%) (0.40%) (-0.05%) 39,430 37,621 36,781 34,159 34,746 36,922 37,144 39,907 42,393 42,190 2,283 General reserve (2) 19,533 17,989 17,543 17,931 18,757 18,510 18,504 18,702 18,225 21,095 2,393 Specific reserve (3) 19,896 19,631 19,238 16,228 15,988 18,412 18,640 21,204 24,167 21,095 -109 Reserve for specific foreign borrowers (4) Reserve ratio ((2)+(3)+(4)/(1)) 62.14% 65.11% 65.76% 64.33% 64.60% 65.27% 63.70% 67.13% 68.78% 68.74% 1.61%#29Net gain related to bond transactions Gains on sales Gains on redemption Numerical Data 7 (Million yen) FY2016 FY2017 FY2018 FY2019 FY2020 YoY change Sep. 2016 Sep. 2017 Sep. 2018 Sep. 2019 Sep. 2020 -16 -5,041 -1,556 -4,440 -4,077 -3,502 -250 -748 293 -2,623 -1,875 44 200 471 620 42 1,653 417 718 440 765 47 ¡Losses on sales 61 4,773 985 4,063 3,962 4,594 12 710 34 2,872 2,162 Losses on redemption 468 947 947 157 539 656 656 112 516 -140 Amortization 94 49 22 99 -99 Net gain related to stock transactions 219 2,021 1,175 2,753 4,047 4,086 -49 1,265 -172 840 -425 Gains on sales 230 2,517 1,398 2,976 4,158 4,286 563 3,021 930 3,115 94 Losses on sales 7 491 221 221 0 0 586 641 978 2,166 1,525 Amortization 4 4 0 0 111 199 27 1,115 124 108 -1,007 Sep. 2016 Mar. 2017 Holding gains and losses of securities 102,590 78,483 Sep. 2017 84,442 Mar. 2018 74,200 Sep. 2018 68,271 Mar. 2019 76,820 Sep. 2019 89,459 Mar. 2020 Sep. 2020 Mar. 2021 Change from Mar. 2020 52,997 71,397 66,597 13,600 Held to maturity -38 -204 -242 -248 -386 -181 -111 -372 -134 -111 261 Other securities (A) 102,629 78,687 84,684 74,449 68,658 77,001 89,570 53,369 71,532 66,708 13,339 Stocks 14,465 20,489 26,458 27,693 30,244 21,956 23,166 17,083 22,183 27,200 10,117 Bonds 68,457 51,369 45,593 42,173 34,045 40,012 40,948 29,355 26,785 21,774 -7,581 Others 19,706 6,829 12,633 4,582 4,368 15,033 25,455 6,930 22,562 17,733 10,803 Deferred tax liabilities on (A) (B) 31,211 23,908 25,725 22,225 20,828 23,378 27,235 16,254 21,776 20,300 4,046 Net holding gain on other securities (A)-(B) 71,417 54,778 58,959 52,224 47,829 53,623 62,334 37,115 49,756 46,408 9,293#30O Non-consolidated Liabilities and Shareholders' Equity Sep. 2016 Mar. 2017 Sep. 2017 Mar. 2018 Sep. 2018 Mar. 2019 Sep. 2019 Mar. 2020 Sep. 2020 Mar. 2021 Numerical Data 8 (Million yen) Change from Mar. 2020 Deposits 3,827,023 3,949,161 3,878,168 4,009,270 3,850,212 Negotiable certificate of deposits 7,200 12,260 72,190 Call money 245,030 29,730 10,878 35,292 3,835,922 91,500 321,370 64,977 75,973 3,799,842 108,793 3,927,848 242,970 309,400 204,890 285,982 138,790 73,465 115,456 4,219,641 4,452,312 524,464 -23,418 6,663 Payables under repurchase agreements 34,255 34,330 36,246 20,882 - Cash collateral received under securities lending 305,847 410,793 585,938 517,951 526,365 Borrowed money 494,993 496,472 438,087 435,505 432,942 468,440 432,000 534,850 443,097 432,000 432,000 431,093 445,776 2,679 642,000 582,000 150,000 Subordinated borrowings Foreign exchange 6 17 28 24 45 7 Other liabilities 39,263 81,975 24,625 56,495 28,585 50,129 50 50,064 24 25 83 59 70,272 37,261 78,482 8,210 Reserve for employees' bonuses 926 970 954 935 965 938 952 914 945 923 9 Reserve for employees' retirement benefits 9,261 9,185 9,077 9,112 9,096 9,019 9,020 8,985 8,920 8,975 -10 Reserve for stock-based compensation 33 99 141 211 244 315 334 388 331 392 4 Reserve for loss on repayment of dormant deposits Other reserve for contingent losses 304 371 317 388 348 414 382 350 337 319 -31 857 840 789 865 940 969 909 981 892 862 -119 Deferred tax liabilities 14,142 7,536 9,336 6,480 4,895 6,816 10,580 3,898 1,535 1,535 Deferred tax liabilities for land revaluation excess 2,366 2,363 2,361 2,328 2,294 2,293 2,258 2,161 2,135 2,133 -28 Acceptances and guarantees 17,511 16,456 16,107 14,665 16,476 16,394 14,964 14,290 14,275 13,943 -347 Total liabilities 4,991,823 5,047,505 5,025,319 5,182,599 5,029,890 5,221,004 5,237,970 5,319,508 5,640,114 5,989,180 669,672 Common stock Capital surplus 20,705 15,516 20,705 15,516 20,705 15,516 20,705 20,705 20,705 15,516 15,516 15,516 20,705 15,520 20,705 20,705 20,705 0 15,520 15,516 15,516 -4 Retained earnings 247,207 Treasury stock -2,111 Net unrealized gain (loss) on other securities 71,417 250,615 -851 54,778 256,155 -697 58,959 261,294 -697 52,224 264,673 270,781 274,192 Net deferred gain (loss) on hedging instruments| 2 Land revaluation excess 2,978 New share reservation rights Total net assets 470 356,186 Total liabilities and net assets 36 2,970 470 344,242 5,348,009 5,391,748 5,379,241 5,534,909 5,380,989 -32 2,965 25 2,892 349 353,922 349 352,310 -606 47,829 -134 2,822 292 351,098 -724 53,623 -680 62,334 277,487 -947 37,115 279,825 -748 49,756 282,681 5,194 -749 198 46,408 9,293 -8 2,820 5 2,738 8 1 -0 -8 2,522 2,513 2,510 -12 292 363,006 5,584,011 5,613,067 281 375,096 281 352,692 5,672,201 170 367,740 170 -111 367,242 6,007,854 6,356,422 14,550 684,221#31Numerical Data 9 Non-consolidated capital adequacy ratio (domestic standard) Capital Basic item for Core Capital 287,158 Adjustment item for Core Capital (-) Risk-weighted assets, etc. 289,306 295,897 295,344 291,849 298,361 1,819 2,543 1,893,663 2,022,321 2,463 Consolidated capital adequacy ratio (domestic standard) Capital 15.94% 14.85% 304,146 300,010 Basic item for Core Capital 304,726 Adjustment item for Core Capital (-) Risk-weighted assets, etc. 579 300,905 894 307,730 835 306,551 310,075 315,031 314,340 317,807 322,190 7,788 7,732 2,023,164 2,190,850 2,213,977 2,270,985 2,253,568 2,476,380 15.20% 14.06% 14.17% 13.79% 14.09% 306,894 306,605 313,048 313,001 317,420 308,089 314,808 316,939 322,030 1.484 1,759 3,938 4,609 4,276 1,907,161 2,019,083 2,017,875 2,179,918 2,208,443 2,269,350 2,251,924 2,472,310 2,508,155 2,637,387 (Note) Credit risk assets are calculated by the internal ratings-based approach. The operational risk-equivalent amount is calculated by the standardized approach. 301,113 Sep. 2016 Mar. 2017 Sep. 2017 Mar. 2018 Sep. 2018 Mar. 2019 Sep. 2019 Mar. 2020 Sep. 2020 Mar. 2021 15.06% 14.30% 14.62% 13.48% 13.60% 13.32% 13.60% 12.52% 12.56% 285,339 11.97% (Million yen) Change from Mar. 2020 -0.55% 299,039 3,694 305,145 4,031 302,663 309,601 6,937 316,501 6,426 323,098 5,291 7,159 2,507,669 12.95% 13.00% 12.48% 320,224 326,219 329,169 324,501 330,254 333,336 6,596 -1,136 2,642,896 166,516 -0.47% 8,945 8,835 4,034 4,166 -110 165,077 Nikkei stock index (yen) 18,909 Exchange rate ($ = Yen, average price at year end) 101.12 112.19 20,356 112.73 21,454 24,120 Sep. 2016 Mar. 2017 Sep. 2017 Mar. 2018 Sep. 2018 Mar. 2019 Sep. 2019 Mar. 2020 Sep. 2020 | Mar. 2021 16,449 21,205 106.24 113.57 110.99 21,755 107.92 18,917 23,185 108.83 105.80 29,178 110.71 Change from Mar. 2020 10,261 1.88 Other indices (non-consolidated basis) Sep. 2016 Mar. 2017 Sep. 2017 Mar. 2018 Sep. 2018 Mar. 2019 Sep. 2019 Mar. 2020 Sep. 2020 Mar. 2021 Change from Mar. 2020 Number of branches Number of employees 140 136 132 130 129 150 150 150 150 149 -1 2,050 1,995 2,045 2,003 2,061 2,018 2,054 1,992 2,012 1,961 -31 (Yen) Dividend per share Net income per share 4.50 47.00 10.50 85.18 7.00 46.12 19.00 85.61 7.00 40.30 19.00 86.44 7.00 40.39 13.00 7.00 11.00 -2.00 67.15 28.11 53.45 -13.70 Net assets per share 2,271.27 2,205.58 2,265.67 2,255.35 2,246.29 2,324.78 2,401.41 2,265.44 2,358.70 2,355.52 90.08 PBR (times) 0.30 0.40 0.43 0.41 0.44 0.34 0.27 0.24 0.23 0.23 -0.01 PER* (times) 7.3 10.4 10.5 11.0 12.4 9.1 8.1 8.1 10.0 10.4 2.3 Stock price 686 892 975 942 998 794 656 547 565 561 14 * PERS in the first half of fiscal years are on an annualized basis.