Investor Presentaiton

<March 31, 2014> (1) Cash and due from banks (2) Securities Held-to-maturity bonds Other securities (3) Loans and bills discounted Carrying amount ¥37,502 Fair Value ¥37,502 \ (Millions of yen) Difference 8,609 843,527 8,699 843,527 90 1,409,351 Reserve for possible (7,215) loan losses (*1) 1,402,135 1,422,514 20,378 Total assets (1) Deposits 2,291,775 2,312,244 20,469 2,019,521 2,020,281 759 (2) Negotiable certificates of deposit (3) Borrowed money Total liabilities Derivatives transactions (*2) To which hedge accounting is not applied 99,723 49,429 2,168,674 99,725 49,456 2,169,463 2 26 788 To which hedge accounting is applied Total derivatives (37) (3,663) (37) (3,663) ¥ (3,700) ¥ (3,700) ¥ <March 31, 2013> (1) Cash and due from banks (2) Call loans and bills purchased (3) Securities Held-to-maturity bonds Other securities (4) Loans and bills discounted Carrying amount ¥ 87,777 72,644 (Millions of yen) Fair Value Difference ¥87,777 ¥ 72,644 8,858 761,137 8,985 761,137 126 1,326,192 Reserve for possible (9,466) loan losses (*1) 1,316,726 1,341,740 25,013 Total assets (1) Deposits 1,977,246 2,247,145 2,272,285 25,139 1,978,314 1,068 (2) Negotiable certificates of deposit (3) Borrowed money 114,393 25,491 114,393 Total liabilities Derivatives transactions (*2) 2,117,131 25,521 2,118,229 0 29 1,097 To which hedge accounting is not applied To which hedge accounting is applied Total derivatives (61) (4,677) (61) (4,677) ¥ (4,738) ¥ (4,738)¥ <March 31, 2014> (1) Cash and due from banks (2) Securities Held-to-maturity bonds Other securities (3) Loans and bills discounted Reserve for possible loan losses (*1) (Thousands of U.S. dollars) Fair Value Difference $364,380 $ Carrying amount $ 364,380 83,647 8,195,948 13,693,655 84,521 8,195,948 874 (70,102) Total assets (1) Deposits (2) Negotiable certificates of deposit (3) Borrowed money Total liabilities Derivatives transactions (*2) To which hedge accounting is not applied To which hedge accounting is applied Total derivatives 13,623,542 13,821,550 197,998 22,267,537 22,466,420 198,882 19,622,240 968,937 480,266 968,956 480,528 21,071,453 21,079,119 19,629,624 7,374 19 252 7,656 (359) (359) (35,590) (35,590) $ (35,950) $ (35,950) $ (*1) General reserve and specific reserve for possible loan losses correspond- ing to loans and bills discounted are deducted. (*2) Derivative transactions recorded in other assets and other liabilities are presented on a net basis. Note 1 Method to calculate fair values of financial instruments. Assets (1) Cash and due from banks Concerning due from banks without maturity, the carrying amount is reported as fair value because the fair value is approximately the same as the carrying amount. Concerning due from banks with maturity, the carrying amount is reported as fair value because the remaining periods are as short as less than one year, and the fair value is approximately the same as the carrying amount. (2) Securities Fair value of stocks is determined based on the exchange price, and that of bonds based on the exchange price or price quoted by the counter party financial institutions. Fair value of investment trusts is determined based on the price publicly available. Fair value of privately placed guaranteed bonds is calculated by discounting the total amount of principal and interest at an interest rate deemed to be applicable to similar bonds by categories based on internal ratings and terms of the bonds. (3) Loans and bills discounted Fair value of loans and bills discounted is calculated by categorizing the loans based on the type, internal rating, term (the remaining period or the period between interest rate renewals), and then discounting the total of the principals and interest with a rate expected of a new similar loan. For loans with short remaining periods (less than one year), the carrying amount is reported as the fair value because the fair value is approxi- mately the same as the carrying amount. For receivables from "legally bankrupt", "virtually bankrupt" and " "possibly bankrupt" borrowers, possible loan losses are estimated based on factors such as present value of expected future cash flow and expected amounts to be collected from collateral and guarantees. Since the fair value of these items approximates the carrying amount net of the currently expected loan losses at the end of the year, such carrying amount is presented as fair value. Concerning loans whose maturity dates were not set because they were limited to within the values of the collateral offered as securiy, the carrying amount is reported as fair value because the fair value is expected to be approximately the same as the carrying amount considering expected periods of repayments and the terms of interest rate. Liabilities (1) Deposits, and (2) negotiable certificates of deposit Concerning demand deposits, the amounts to be paid if such deposits were withdrawn on the end of the year (book values) are regarded as fair value. Time deposits are separated by period, and the present value is calculated by discounting the future cash flow. The discount rate is the rate used for new deposit-taking. For those with short remaining periods (less than one year), their carrying amount is reported as the fair value because the fair value is approximately the same as the carrying amount. (3) Borrowed money Fair value of borrowed money is calculated by discounting the total amount of the principal and interest of such borrowed money classified by the type, internal rating and the remaining period at the interest rates considered to be applicable to new similar borrowed money. The fair value of short-term borrowed money with remaining period as of the end of the fiscal year not exceeding one year is based on the carrying amount because the fair value is approximately the same as the carrying amount. Derivative transactions Matters related to derivatives transactions are as stated in the Note 17 "Fair Value Information on Derivatives". Note 2 Financial instruments whose fair value is deemed to be extremely difficult to determine were as follows. These were not included in the Asset, "(2) Securities" in "Fair value of financial instruments". <March 31, 2014> Carrying amount Category Millions of yen Unlisted stocks (*1)(*2) ¥ 1,538 $ Investment in Partnerships (*3) 508 Thousands of U.S. dollars 14,943 4,935 Total ¥ 2,046 19,879 <March 31, 2013> Category Carrying amount Millions of yen Unlisted stocks (*1) (*2) ¥ 1,431 Investment in Partnerships (*3) Total ¥ 71 1,503 $ (*1) Unlisted stocks are not subject to fair value disclosure because of the extreme difficulty in determining their fair values as they are not sold in the market. (*2) Impairment accounting was applied to unlisted stocks of ¥9 million in the previous consolidated fiscal year. Impairment accounting was applied to unlisted stocks of ¥0 million ($0 thousand) in this consolidated fiscal year. (*3) In the case that partnership assets consist of unlisted stocks whose fair value is deemed to be extremely difficult to determine, investment in partnerships is not subject to fair value disclosure. Note 3 Scheduled redemption amounts of financial assets and securities with maturities <March 31, 2014> Due from banks 122,864 10 years ¥ 113,918 44,903 (Millions of yen) Due in Due after Due after Due after Due after 1 year 1 year through 3 years through 5 years through or less 3 years 5 years 7 years 7 years through 10 years Due after ¥ 37,502 \ ¥ ¥ ¥ Securities 172,929 Held-to-maturity bonds Corporate bonds 1,863 1,863 4,287 4,287 188,171 1,851 1,851 167,495 607 607 Other securities with a maturity date Japanese government bonds Municipal bonds 121,001 168,641 186,320 166,888 113,918 44,903 81,240 86,619 80,317 118,772 84,760 17,986 20,302 22,045 52,395 6,596 4,586 24,220 Corporate bonds 7,869 31,211 34,886 10,064 7,317 Other 11,589 28,765 18,720 31,454 17,253 2,695 Loans and bills discounted (*) Total ¥ 347,259 507,626¥ 282,283 215,122 141,332 138,379 264,821 455,212 403,293 ¥ 308,828 ¥ 252,297 \ 309,724 *Of loans and bills discounted, the portion whose timing of collection is unforeseeable, such as loan to "Legally bankrupt" borrowers, loan to "Virtually bankrupt" borrowers, loan to "Possibly bankrupt" borrowers, amounting to ¥20,152 million ($195,802 thousand) is not included in the above table. <March 31, 2013> Due from banks Call loans and bills purchased Securities - 158,043 53,330 (Millions of yen) Due in Due after Due after Due after Due after 1 year or less 1 year through 3 years 3 years through 5 years 5 years through 7 years 7 years through 10 years Due after 10 years ¥ 87,777 \ ¥ 72,644 64,062 125,106 Held-to-maturity bonds Corporate bonds 2,209 4,326 2,209 4,326 201,044 1,813 1,813 127,834 510 510 Other securities with a maturity date 61,852 120,780 199,231 127,324 158,043 53,330 Japanese government bonds 24,634 50,346 113,105 84,491 106,491 23,404 Municipal bonds 17,936 31,183 31,387 19,825 4,628 25,325 Corporate bonds 14,015 20,068 36,551 12,191 7,606 Other 5,265 19,181 18,187 10,815 39,316 4,600 Loans and bills discounted (*) 336,854 252,619 211,221 Total ¥ 561,338¥ 377,726 ¥ 412,265 134,526 262,361¥ 124,862 244,408 282,905 ¥ 297,738 *Of loans and bills discounted, the portion whose timing of collection is unforeseeable, such as loan to "Legally bankrupt" borrowers, loan to "Virtually bankrupt" borrowers, loan to "Possibly bankrupt" borrowers, amounting to ¥21,700 million is not included in the above table. 22 22 23 23