セブン銀行（8410） – [Summary] Financial Results for the Fiscal Year Ended March 31, 2022 (Consolidated Data)

May 6, 2022 Company Name: Stock Code: Representative: For inquiries: Financial Results for the Fiscal Year Ended March 31, 2022 [JGAAP] (Consolidated Data) Seven Bank, Ltd. 8410 Stock exchange listing: Tokyo Stock Exchange URL https://www.sevenbank.co.jp/ (title) President and Representative Director (name) Yasuaki Funatake (title) Senior Managing Executive Officer, General Manager of Planning Division (name) Hisanao Kawada Telephone: +81-3-3211-3041 (Amounts of less than one million yen are rounded down and percentages are rounded to the first decimal place, etc.) Scheduled date for holding the Annual General Meeting of Shareholders: June 20, 2022 June 1, 2022 Scheduled date for cash dividends: Scheduled date for filing of financial report: June 21, 2022 Trading accounts: Earnings supplementary explanatory documents: Yes Earnings presentation: 1. Financial Highlights for the Fiscal Year Ended March 31, 2022 (April 1, 2021–March 31, 2022) (1) Consolidated Operating Results Yes (Analysts, institutional investors) Not established Ordinary income Ordinary profit Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 Note: Comprehensive income: Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 Million yen 136,667 137,267 % (0.4) (7.5) Million yen 28,255 35,640 % (20.7) (10.5) 22,163 million yen (-13.4%) 25,605 million yen (-1.2%) (% represents the year-on-year change from the previous fiscal year.) Net income attributable to owners of the parent Million yen 20,827 25,905 % (19.6) (0.9) Net income per share Diluted earnings per share Return on equity (ROE) Return on assets (ROA) – Ratio of ordinary profit to total assets Ratio of ordinary profit to ordinary income Yen 17.71 Fiscal year ended March 31, 2022 22.01 Fiscal year ended March 31, 2021 (Reference) Equity in net earnings of affiliated companies: Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 Yen – 22.00 % 8.7 11.3 % 2.3 3.1 -694 million yen -796 million yen % 20.6 25.9 Note: “Diluted earnings per share” for the fiscal year ended March 31, 2022, is not described because there were no dilutive shares. (2) Consolidated Financial Position Total assets Total net assets Net assets to total assets ratio Net assets per share As of March 31, 2022 As of March 31, 2021 (Reference) Capital: As of March 31, 2022 As of March 31, 2021 Million yen 1,221,623 1,197,158 242,506 million yen 233,269 million yen Million yen 244,113 234,676 % 19.8 19.4 Yen 206.33 198.40 Note: “Net assets to total assets ratio” is calculated as: (Total net assets at the end of the period – Non-controlling interests at the end of the period) / Total assets at the end of the period. Please note that this “Net assets to total assets ratio” is not the capital adequacy ratio specified in the notification of capital adequacy ratio. (3) Consolidated Cash Flows Net cash provided by operating activities Net cash used in investing activities Net cash used in financing activities Cash and cash equivalents at the end of the year Million yen 41,311 136,039 Million yen (36,114) (32,770) Million yen (12,727) (13,555) Million yen 931,404 937,945 Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 2. Dividends Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022 Fiscal year ending March 31, 2023 (Forecasts) First quarter Dividend per share Third quarter Semi-annual Year end Total Total dividends (total) Payout ratio (consolidated) Ratio of dividends to equity (consolidated) Yen – – – Yen 5.50 5.50 5.50 Yen – – – Yen 5.50 5.50 5,50 Yen Million yen 12,972 12,972 11.00 11.00 11.00 % 49.9 62.0 66.3 % 5.6 5.4 –1– 3. Performance Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022–March 31, 2023) (% represents the year-on-year change from each respective corresponding period [full fiscal year and semi-annual] of the previous fiscal year.) Ordinary income Ordinary profit Net income per share Net income attributable to owners of the parent Million yen 72,500 149,000 % Million yen 13,500 28,000 7.5 9.0 % Million yen 9,500 19,500 (10.4) (0.9) % (12.8) (6.3) Yen 8.08 16.59 Semi-annual (Accumulated) Full-year –2– : None : None : None Notes (1) Changes in important subsidiaries during the period under review (fiscal year ended March 31, 2022) Added -(company name)- Excluded -(company name)- (2) Changes in accounting policy, changes in accounting estimates, and retrospective restatements (a) Changes in accounting policy arising from revision of accounting standards, etc. : Yes (b) Changes in accounting policy other than those noted in (a) above : None (c) Changes in accounting estimates (d) Retrospective restatements (3) Number of shares (common stock) (a) Number of shares in issue (including treasury stock) (b) Number of treasury shares (c) Average number of shares for the period under review As of March 31, 2022 1,179,308,000 shares As of March 31, 2021 1,179,308,000 shares As of March 31, 2022 3,982,063 shares As of March 31, 2021 3,587,793 shares Fiscal year ended March 31, 2022 1,175,596,575 shares Fiscal year ended March 31, 2021 1,176,755,861 shares Note: Number of treasury shares and average number of shares for the period under review include shares of the Company held by “Directors’ Compensation BIP Trust” and “Stock Grant ESOP Trust.” Reference: Overview of Non-Consolidated Performance 1. Non-Consolidated Financial Highlights for the Fiscal Year Ended March 31, 2022 (April 1, 2021–March 31, 2022) (1) Non-Consolidated Operating Results (% represents the year-on-year change from the previous fiscal year.) Ordinary income Ordinary profit Net income Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 Million yen 110,298 111,672 % (1.2) (7.1) Million yen 28,412 34,593 % (17.8) (23.1) Million yen 18,135 15,825 % 14.5 (42.8) Net income per share Diluted earnings per share Fiscal year ended March 31, 2022 Fiscal year ended March 31, 2021 Note: “Diluted earnings per share” for the fiscal year ended March 31, 2022, is not described because there were no dilutive shares. (2) Non-Consolidated Financial Position Yen 15.42 13.44 Yen – 13.44 Total assets Total net assets Net assets to total assets ratio Net assets per share As of March 31, 2022 As of March 31, 2021 Million yen 1,209,040 1,192,358 236,925 million yen 231,687 million yen Million yen 236,925 231,687 (Reference) Note: “Net assets to total assets ratio” is calculated as: Total net assets at the end of the period / Total assets at the end of the period. Capital: As of March 31, 2022 As of March 31, 2021 Please note that this “Net assets to total assets ratio” is not the capital adequacy ratio specified in the notification of capital adequacy ratio. % 19.5 19.4 Yen 201.58 197.06 2. Non-Consolidated Performance Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022–March 31, 2023) (% represents the year-on-year change from each respective corresponding period [full fiscal year and semi-annual] of the previous fiscal year.) Ordinary income Ordinary profit Net income Net income per share Semi-annual (Accumulated) Full-year Million yen 57,500 116,500 % Million yen 13,500 27,500 5.2 5.6 % Million yen 9,500 19,000 (8.3) (3.2) % (5.7) 4.7 Yen 8.08 16.16 * This earnings report is exempt from review procedures by a certified public accountant or audit corporation. * Explanation of the appropriate use of earnings forecasts, and other special notes This report contains forward-looking statements which represent the judgement of Seven Bank based on currently available information. Actual results may be materially different from the projections due to various factors in these forward-looking statements. –3– 1. Consolidated Financial Statements (1) Consolidated Balance Sheets (Millions of yen) As of March 31, 2021 As of March 31, 2022 Securities Assets Cash and due from banks Loans ATM-related temporary payments Other assets Tangible fixed assets Foreign currency Buildings ATMs Other tangible fixed assets Intangible fixed assets Software Other intangible fixed assets Asset for retirement benefits Deferred tax assets Allowance for credit losses Total assets Liabilities Deposits Negotiable certificates of deposits Borrowed money Bonds ATM-related temporary advances Other liabilities Reserve for bonuses Liability for retirement benefits Reserve for directors’ benefit trust Deferred tax liabilities Total liabilities Net assets Common stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity Net unrealized gains on available-for-sale securities Accumulated adjustments for retirement benefit Foreign currency translation adjustments Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets 1,197,158 1,221,623 937,945 78,154 24,329 0 83,681 17,442 19,218 1,690 14,342 3,185 34,857 26,215 8,642 909 707 (88) 782,658 750 591 105,000 47,046 25,098 610 6 634 87 962,482 30,724 30,724 168,694 (1,081) 229,061 440 3,407 359 4,207 1,407 931,404 89,945 28,056 0 84,461 24,062 26,571 1,784 20,947 3,839 33,593 28,605 4,988 1,051 2,979 (504) 789,937 750 1,936 105,000 49,233 29,071 789 13 774 3 977,509 30,724 30,764 176,549 (1,173) 236,864 606 4,714 320 5,641 1,606 234,676 1,197,158 244,113 1,221,623 –4– (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income (Millions of yen) Fiscal year ended March 31, 2021 (April 1, 2020–March 31, 2021) Fiscal year ended March 31, 2022 (April 1, 2021–March 31, 2022) Consolidated Statement of Income Ordinary income Interest income Interest on loans Interest and dividends on securities Interest on call loans Interest on cash and due from banks Fees and commissions income Remittance-related fee income ATM-related fee income Other fees and commissions Other operating income Other ordinary income Other Ordinary expenses Interest expenses Interest on deposits Interest on negotiable certificates of deposits Interest on call money Interest on borrowed money Interest on bonds Fees and commissions expenses Remittance-related fee expenses ATM placement fee expenses ATM-related fee expenses Other fees and commissions expenses General and administrative expenses Other ordinary expenses Other Provision of allowance for credit losses Ordinary profit Extraordinary income Gain on disposal of fixed assets Gain on change in equity Extraordinary losses Loss on disposal of fixed assets Impairment loss Income before income taxes Income taxes-current Income taxes-deferred Total income taxes Net income Net loss attributable to non-controlling interests Net income attributable to owners of the parent 137,267 3,609 3,475 29 1 102 131,709 3,438 123,501 4,769 201 1,746 1,746 101,626 539 67 0 (9) 14 467 35,360 1,773 28,282 2,444 2,859 64,308 1,418 63 1,355 35,640 273 273 – 258 258 – 35,655 9,867 51 9,918 25,737 (168) 25,905 –5– 136,667 4,032 3,890 34 5 102 131,320 3,362 121,731 6,225 390 924 924 108,412 602 45 0 (4) 94 466 35,816 1,631 28,345 2,327 3,511 70,245 1,747 415 1,332 28,255 435 19 415 1,536 773 763 27,154 8,772 (2,300) 6,471 20,682 (144) 20,827 Consolidated Statements of Comprehensive Income Net income Other comprehensive income Net unrealized gains on available-for-sale securities Adjustments for retirement benefit Foreign currency translation adjustments Comprehensive income: Comprehensive income attributable to: Owners of the parent Non-controlling interests (Millions of yen) Fiscal year ended March 31, 2021 (April 1, 2020–March 31, 2021) Fiscal year ended March 31, 2022 (April 1, 2021–March 31, 2022) 25,737 (131) (59) (369) 296 25,605 25,782 (177) 20,682 1,480 166 1,353 (38) 22,163 22,261 (98) –6– Balance at the beginning of the year Changes in items during the period Cash dividends Net income attributable to owners of the parent Acquisition of treasury stock Disposal of treasury stock Change in capital surplus due to change in equity of consolidated subsidiaries Net changes in items other than shareholders’ equity Total changes in items during the period Balance at the beginning of the year Changes in items during the period Issuance of new shares Cash dividends Net income attributable to owners of the parent Acquisition of treasury stock Disposal of treasury stock Change in capital surplus due to change in equity of consolidated subsidiaries Net changes in items other than shareholders’ equity Total changes in items during the period Balance at end of the year (3) Consolidated Statements of Changes in Net Assets Fiscal year ended March 31, 2021 (April 1, 2020–March 31, 2021) (Millions of yen) Common stock Capital surplus Treasury stock Shareholders’ equity Retained earnings 30,702 30,757 155,760 (338) 216,882 Issuance of new shares 21 21 (12,971) 25,905 Total shareholders’ equity 43 (12,971) 25,905 (770) (770) 27 27 (54) (54) Balance at end of the year 30,724 30,724 168,694 (1,081) 229,061 21 (33) 12,934 (742) 12,179 –7– 60 60 43 (12,971) 25,905 (770) 27 (54) (336) 11,842 (59) (59) 440 (360) (360) 3,407 296 296 359 (122) (274) (122) 4,207 (274) – 1,407 234,676 Accumulated other comprehensive income Net unrealized gains on available-for-sale securities Foreign currency translation adjustments Accumulated adjustments for retirement benefit Total accumulated other comprehensive income Subscription rights to shares Non-controlling interests Total net assets 499 3,767 62 4,329 274 1,346 222,833 Fiscal year ended March 31, 2022 (April 1, 2021–March 31, 2022) (Millions of yen) Common stock Capital surplus Treasury stock Shareholders’ equity Retained earnings Total shareholders’ equity 30,724 30,724 168,694 (1,081) 229,061 Balance at the beginning of the year Changes in items during the period Issuance of new shares Cash dividends Net income attributable to owners of the parent Acquisition of treasury stock Disposal of treasury stock Change in capital surplus due to change in equity of consolidated subsidiaries Net changes in items other than shareholders’ equity Total changes in items during the period Balance at the beginning of the year Changes in items during the period Issuance of new shares Cash dividends Net income attributable to owners of the parent Acquisition of treasury stock Disposal of treasury stock Change in capital surplus due to change in equity of consolidated subsidiaries Net changes in items other than shareholders’ equity Total changes in items during the period Balance at end of the year Balance at end of the year 30,724 30,764 176,549 (1,173) 236,864 – 39 7,854 (91) 7,802 Accumulated other comprehensive income Net unrealized gains on available-for-sale securities Foreign currency translation adjustments Accumulated adjustments for retirement benefit Total accumulated other comprehensive income Subscription rights to shares Non-controlling interests Total net assets 440 3,407 359 4,207 – 1,407 234,676 39 (12,972) 20,827 (97) 6 (12,972) 20,827 (97) – 6 39 –8– 166 166 606 1,307 1,307 4,714 (38) (38) 320 1,434 1,434 5,641 – – – 199 199 – (12,972) 20,827 (97) 6 39 1,634 9,437 1,606 244,113 (4) Consolidated Statements of Cash Flows (Millions of yen) Fiscal year ended March 31, 2021 (April 1, 2020–March 31, 2021) Fiscal year ended March 31, 2022 (April 1, 2021–March 31, 2022) Net cash provided by operating activities Income before income taxes Depreciation and amortization Equity in (earnings) losses of affiliates Net change in allowance for credit losses Net change in reserve for bonuses Impairment loss Net change in asset and liability for retirement benefits Net change in reserve for directors’ retirement benefits Reserve for directors’ benefit trust Interest income Interest expenses Loss (gain) related to securities Net loss (gain) on disposal of fixed assets Loss (gain) on change in equity Net change in loans Net change in deposits Net change in negotiable certificates of deposits Net change in borrowed money Net change in ATM-related temporary accounts Interest received Interest paid Other Subtotal Income taxes paid Income taxes refund Net cash provided by operating activities Net cash used in investing activities Purchase of securities Proceeds from maturity of securities Purchase of tangible fixed assets Proceeds from sales of tangible fixed assets Purchase of intangible fixed assets Proceeds from sales of intangible fixed assets Purchase of shares in an equity method affiliated company Net cash used in investing activities Net cash used in financing activities Proceeds from stock issuance to non-controlling interests Proceeds from exercise of stock options Dividends paid Purchase of treasury stock Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net change in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year –9– 35,655 14,070 – 796 63 45 (100) (4) 397 (3,609) 539 88 (14) – (1,045) 98,898 (50) 404 274 3,815 (613) (213) 149,397 (13,358) – 136,039 (20,484) 13,084 (10,436) 273 (14,808) 100 (499) (32,770) 183 0 (12,968) (770) (13,555) (213) 89,498 848,446 937,945 27,154 16,388 763 694 415 164 (190) – 140 (4,032) 602 65 753 (415) (3,727) 7,278 – 1,228 1,472 4,181 (642) (2,273) 50,023 (8,734) 22 41,311 (23,739) 11,892 (12,468) 19 (11,817) – – (36,114) 337 – (12,967) (97) (12,727) 989 (6,541) 937,945 931,404 2. Non-Consolidated Financial Statements (1) Non-Consolidated Balance Sheets (Millions of yen) As of March 31, 2021 As of March 31, 2022 Assets Cash and due from banks Cash Due from banks Securities Municipal bonds Bonds Stocks Other securities Loans Loan on deeds Overdrafts Foreign currency Due from foreign banks Other assets Prepaid expenses Accrued income ATM-related temporary payments Other assets Tangible fixed assets Software Software in progress Buildings ATMs Other tangible fixed assets Intangible fixed assets Other intangible fixed assets Prepaid pension cost Deferred tax assets Customers’ liabilities for acceptances and guarantees Allowance for credit losses Total assets 927,647 800,202 127,445 91,173 21,106 49,511 9,349 11,205 24,350 50 24,300 0 0 97,739 1,366 8,867 83,152 4,353 17,194 1,612 12,761 2,819 32,518 25,085 7,429 4 369 759 769 (164) 910,849 813,790 97,059 111,167 27,026 55,186 9,016 19,938 28,203 250 27,953 0 0 104,256 1,524 8,587 83,547 10,595 21,060 1,647 16,266 3,146 31,698 27,743 3,950 4 559 839 901 (495) 1,192,358 1,209,040 –10– (Millions of yen) As of March 31, 2021 As of March 31, 2022 Ordinary deposits Time deposits Other deposits Liabilities Deposits Negotiable certificates of deposits Bonds Other liabilities Accrued expenses Income taxes payable ATM-related temporary advances Asset retirement obligations Other liabilities Reserve for bonuses Reserve for directors’ benefit trust Acceptances and guarantees Total liabilities Net assets Common stock Capital surplus Capital reserve Retained earnings Treasury stock Legal reserve in retained earnings Other retained earnings Retained earnings brought forward Total shareholders’ equity Net unrealized gains on available-for-sale securities Total valuation and translation adjustments Total net assets Total liabilities and net assets 784,892 544,460 240,346 84 750 105,000 68,262 4,157 6,118 47,046 361 10,578 363 634 769 960,671 30,724 30,724 30,724 170,879 0 170,879 170,879 (1,081) 231,246 440 440 792,751 563,533 229,097 121 750 105,000 71,408 4,275 6,265 49,233 400 11,232 529 774 901 972,115 30,724 30,724 30,724 176,042 0 176,042 176,042 (1,173) 236,318 606 606 231,687 1,192,358 236,925 1,209,040 –11– (2) Non-Consolidated Statements of Income Ordinary income Interest on loans Interest and dividends on securities Interest on call loans Interest on cash and due from banks Interest income Fees and commissions income Remittance-related fee income ATM-related fee income Other fees and commissions Other operating income Gains on foreign exchange transactions Other ordinary income Other Ordinary expenses Interest expenses Interest on deposits Interest on negotiable certificates of deposits Interest on call money Interest on borrowed money Interest on bonds Fees and commissions expenses Remittance-related fee expenses ATM placement fee expenses ATM-related fee expenses Other fees and commissions expenses General and administrative expenses Other ordinary expenses Written-off of loans Provision of allowance for credit losses Losses on devaluation of stocks and other securities Other Ordinary profit Extraordinary losses Loss on disposal of fixed assets Loss on valuation of stocks of subsidiaries and affiliates Income before income taxes Income taxes-current Income taxes-deferred Total income taxes Net income (Millions of yen) Fiscal year ended March 31, 2021 (April 1, 2020–March 31, 2021) Fiscal year ended March 31, 2022 (April 1, 2021–March 31, 2022) 111,672 3,605 3,489 29 1 85 106,729 3,438 99,310 3,980 211 211 1,126 1,126 77,078 524 67 0 (9) 0 467 20,176 1,773 15,911 575 1,916 56,138 238 113 – 34,593 88 36 726 226 499 33,867 9,721 8,320 18,041 15,825 110,298 4,004 3,879 34 5 85 105,175 3,362 97,151 4,661 318 318 799 799 81,886 507 45 0 (4) 0 466 21,076 1,631 16,537 675 2,231 59,890 411 331 4 65 9 28,412 1,750 762 987 26,662 8,679 (152) 8,526 18,135 –12– (3) Non-Consolidated Statements of Changes in Net Assets Fiscal year ended March 31, 2021 (April 1, 2020–March 31, 2021) (Millions of yen) Shareholders’ equity Capital surplus Retained earnings Common stock Capital reserve Capital surplus Total Legal reserve in retained earnings Other retained earnings Retained earnings brought forward Treasury stock Total retained earnings Total shareholders’ equity 30,702 30,702 30,702 0 168,025 168,025 (338) 229,091 Issuance of new shares 21 21 21 (12,971) (12,971) 15,825 15,825 (12,971) 15,825 (770) (770) 27 43 27 Balance at end of the year 30,724 30,724 30,724 170,879 170,879 (1,081) 231,246 21 21 21 2,854 2,854 (742) 2,154 Balance at the beginning of the year Changes in items during the period Cash dividends Net income Acquisition of treasury stock Disposal of treasury stock Net changes in items other than shareholders’ equity Total changes in items during the period Balance at the beginning of the year Changes in items during the period Issuance of new shares Cash dividends Net income Acquisition of treasury stock Disposal of treasury stock Net changes in items other than shareholders’ equity Total changes in items during the period Balance at end of the year Valuation and translation adjustments Net unrealized gains on available-for-sale securities Total valuation and translation adjustments Subscription rights to shares Total net assets 499 499 274 229,866 (59) (59) (274) (334) (59) 440 (59) 440 (274) 1,820 – 231,687 – 0 43 (12,971) 15,825 (770) 27 –13– Fiscal year ended March 31, 2022 (April 1, 2021–March 31, 2022) (Millions of yen) Shareholders’ equity Capital surplus Retained earnings Common stock Capital reserve Total capital surplus Legal reserve in retained earnings Treasury stock Total retained earnings Total shareholders’ equity Other retained earnings Retained earnings brought forward 30,724 30,724 30,724 0 170,879 170,879 (1,081) 231,246 (12,972) (12,972) 18,135 18,135 (12,972) 18,135 (97) (97) 6 – 6 Balance at end of the year 30,724 30,724 30,724 176,042 176,042 (1,173) 236,318 – – – 5,163 5,163 (91) 5,071 Valuation and translation adjustments Net unrealized gains on available-for-sale securities Total valuation and translation adjustments Subscription rights to shares Total net assets 440 440 – 231,687 Balance at the beginning of the year Changes in items during the period Issuance of new shares Cash dividends Net income Acquisition of treasury stock Disposal of treasury stock Net changes in items other than shareholders’ equity Total changes in items during the period Balance at the beginning of the year Changes in items during the period Issuance of new shares Cash dividends Net income Acquisition of treasury stock Disposal of treasury stock Net changes in items other than shareholders’ equity Total changes in items during the period Balance at end of the year 166 166 606 166 166 606 – – – – 0 – (12,972) 18,135 (97) 6 166 5,237 236,925 –14–