For the Fiscal Year Ended March 31, 2014

ANNUAL REPORT 2014

TOMONY Holdings, Inc. Corporate Message On behalf of TOMONY Holdings, Group (the “Group”), we would like to express our sincere gratitude to everyone for your support. TOMONY Holdings, Inc. (the “Company”) was established in April 2010 as a financial holding company of the Tokushima Bank, Ltd. and the Kagawa Bank, Ltd., and has been in the second phase of its management plan since April 2013. In this phase of the plan, the Company, building on the concepts of the plan’s first phase, engages in initiatives such as “regional expansion,” “enhancement of internal controls,” and “cost reductions,” and focuses on compliance with Basel III and financing to small and medium-sized enterprises in light of accommodating to the expiration of the SME Financing Facilitation Act. In March 2014, operations of the “new system for branch offices” started at all branches of the Tokushima Bank, Ltd. and the Kagawa Bank, Ltd. With the new common system between two banks, not only development and operational costs can be reduced but also further expedited and efficient administrative processes can be expected. In addition, we believe that unified operational rules for both banks will expand personnel exchanges and make internal audits more efficient, which should serve for the improvement in our customer services. In accordance with the Group management vision, each Group company moving forward will answer to the needs of its regional customers by producing visible results based on the demonstration of corporate governance and the execution of relevant strategies. We will then aim to become a financial group with a strong presence and become capable of growing with regional customers. We ask for your continued and undying support for the year ahead and beyond.

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1. Summary of Selected Financial Data (Consolidated)

Consolidated ordinary income

3rd fiscal year

4th fiscal year

As of March 31, 2013 and

As of March 31, 2014 and

from April 1, 2012

from April 1, 2013

to March 31, 2013

to March 31, 2014

(Millions of yen)

62,645

65,359

(Millions of yen)

9,607

14,439

(Millions of yen)

5,572

7,849

(Millions of yen)

20,398

7,338

(Millions of yen)

156,495

163,192

(Millions of yen)

2,742,006

2,827,191

(Yen)

1,038.86

1,076.83

(Yen)

36.90

52.78

(Yen)

36.71

52.31

(%)

5.62

5.67

(%)

3.83

4.98

(Times)

11.08

8.12

Net cash provided by (used in) operating activities

18,143

203,842

Net cash provided by (used in) investing activities

(45,686)

(102,350)

Net cash provided by (used in) financing activities

(2,511)

(1,023)

Consolidated ordinary profit Consolidated net income

Consolidated comprehensive income Consolidated net assets Consolidated total assets Net assets per share Net income per share Diluted net income per share Capital adequacy ratio

Consolidated return on equity (ROE) Consolidated price earnings ratio (PER)

(Millions of yen)

(Millions of yen)

(Millions of yen)

Cash and cash equivalents at end of period

58,099

(Millions of yen)

Number of employees [Separately, average number of temporary employees] Notes: 1.

2,335 [195]

(Persons)

158,581 2,100 [357]

Consumption tax and local consumption tax of the Company and its consolidated subsidiaries are accounted for based on the tax exclusion method. 2. The “Accounting Standard for Earnings Per Share” (ASBJ Statement No. 2) and the “Guidance on Accounting Standard for Earnings Per Share” (ASBJ Guidance No. 4) are applied for calculations of net assets per share, net income per share, and diluted net income per share. 3. The consolidated capital adequacy ratio is calculated by dividing “(total net assets at end of period – subscription rights to shares at end of period – minority interests at end of period)” by “total assets at end of period.”

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2. Financial Statements [TOMONY Holdings, Inc.] (1) Consolidated Balance Sheet (Millions of yen)

(Thousands of U.S. dollars) As of March 31, 2014

As of March 31, 2013

As of March 31, 2014

65,414 151,000 15,000 124 336 4,459 628,546 1,837,424 3,653 7,735 16,363 25,499 7,923 15,784 148 256 1,386 134 5 15 113 – 2,521 8,795 (25,001)

161,482 15,000 – 200 4,453 739,967 1,866,100 4,663 8,282 15,298 27,662 7,715 15,777 829 1,447 1,894 140 2 23 113 1,102 1,279 7,226 (25,668)

1,569,005 – 145,744 – 1,943 43,266 7,189,729 18,131,558 45,307 80,470 148,639 268,771 74,961 153,293 8,054 14,059 18,402 1,360 19 223 1,097 10,707 12,427 70,209 (249,397)

2,742,006

2,827,191

27,469,792

2,493,537 44,038 23,192 13 11,548 284 68 1,384 – 7 375 283 895 1,084 8,795

2,559,512 44,243 20,440 25 27,810 304 71 – 864 – 402 297 1,712 1,084 7,226

24,868,946 429,877 198,600 242 270,209 2,953 689 – 8,394 – 3,905 2,885 16,634 10,532 70,209

2,585,510

2,663,999

25,884,172

Assets Cash and due from banks Call loans and bills bought Receivables under resale agreements Monetary claims bought Trading account securities Money held in trust Securities Loans and bills discounted Foreign exchanges Lease receivables and investment assets Other assets Tangible fixed assets Buildings, net Land Lease assets, net Construction in progress Other tangible fixed assets Intangible fixed assets Software Lease assets Other intangible fixed assets Net defined benefit asset Deferred tax assets Customers’ liabilities for acceptances and guarantees Allowance for loan losses Total assets Liabilities Deposits Negotiable certificates of deposit Borrowed money Foreign exchanges Other liabilities Provision for bonuses Provision for directors’ bonuses Provision for retirement benefits Net defined benefit liability Provision for directors’ retirement benefits Provision for reimbursement of deposits Provision for contingent loss Deferred tax liabilities Deferred tax liabilities for land revaluation Acceptances and guarantees Total liabilities

-3-

–

(Millions of yen) As of March 31, 2013 Net assets Capital stock Capital surplus Retained earnings Treasury stock

25,000 21,887 91,606 (1,442)

Total shareholders’ equity

137,051

As of March 31, 2014 25,000 21,887 98,268 (1,192) 143,963

(Thousands of U.S. dollars) As of March 31, 2014 242,907 212,660 954,799 (11,581) 1,398,785

Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land Remeasurements of defined benefit plans

15,621 (1) 1,463 –

14,979 (1) 1,462 117

145,540 (9) 14,205 1,136

Total accumulated other comprehensive income

17,083

16,557

160,872

307 2,052

488 2,182

4,741 21,200

Subscription rights to shares Minority interests Total net assets Total liabilities and net assets

-4-

156,495

163,192

1,585,619

2,742,006

2,827,191

27,469,792

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income Consolidated Statement of Income Fiscal year ended March 31, 2013

Fiscal year ended March 31, 2014

(Thousands of U.S. dollars) Fiscal year ended March 31, 2014

62,645 45,854 38,651 6,944 165 12 35 43 6,200 8,287 2,301 860 1,441 53,037 2,422 2,122 93 – 189 17 3,048 6,395 29,526 11,644 4,154 7,490

65,359 46,466 37,335 8,888 99 14 93 35 6,502 9,546 2,844 1,078 1,766 50,920 2,191 1,913 82 0 174 20 3,318 6,695 29,645 9,069 4,835 4,234

635,046 451,476 362,757 86,358 961 136 903 340 63,175 92,751 27,633 10,474 17,158 494,753 21,288 18,587 796 0 1,690 194 32,238 65,050 288,039 88,116 46,978 41,138

9,607

14,439

140,293

14 4 9 117 65 51

6 6 – 141 76 65

58 58 – 1,369 738 631

Income before income taxes and minority interests

9,504

14,304

138,981

Income taxes-current Income taxes-deferred

1,665 1,965

3,893 2,377

37,825 23,095

Total income taxes

3,631

6,270

60,921

Income before minority interests

5,872

8,033

78,050

300

184

1,787

5,572

7,849

76,263

(Millions of yen)

Ordinary income Interest income Interest on loans and discounts Interest and dividends on securities Interest on call loans and bills bought Interest on receivables under resale agreements Interest on deposits with banks Other interest income Fees and commissions Other ordinary income Other income Recoveries of written off claims Other Ordinary expenses Interest expenses Interest on deposits Interest on negotiable certificates of deposit Interest on call money and bills sold Interest on borrowings and rediscounts Other interest expenses Fees and commissions payments Other ordinary expenses General and administrative expenses Other expenses Provision of allowance for loan losses Other Ordinary profit Extraordinary income Gain on disposal of noncurrent assets Gain on change in equity Extraordinary loss Loss on disposal of noncurrent assets Impairment loss

Minority interests in income Net income

-5-

Consolidated Statement of Comprehensive Income Fiscal year ended March 31, 2013

Fiscal year ended March 31, 2014

(Thousands of U.S. dollars) Fiscal year ended March 31, 2014

Income before minority interests Other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges

5,872 14,525 14,525 (0)

8,033 (695) (695) (0)

78,050 (6,752) (6,752) (0)

Comprehensive income

20,398

7,338

71,298

20,017

7,206

70,015

380

131

1,272

(Millions of yen)

(Comprehensive income attributable to) Comprehensive income attributable to owners of the parent Comprehensive income attributable to minority interests

-6-

(3) Consolidated Statement of Changes in Net Assets Fiscal year ended March 31, 2013 (Millions of yen)

Shareholders’ equity Capital stock Balance at the beginning of current period Changes of items during the period Dividends from surplus Net income Purchase of treasury stock Disposal of treasury stock Reversal of revaluation reserve for land Net changes of items other than shareholders’ equity Total changes of items during the period Balance at the end of current period

Balance at the beginning of current period Changes of items during the period Dividends from surplus Net income Purchase of treasury stock Disposal of treasury stock Reversal of revaluation reserve for land Net changes of items other than shareholders’ equity Total changes of items during the period Balance at the end of current period

25,000

Capital surplus 21,887

Retained earnings 87,245

Treasury stock (159)

(1,215)

5,572

5,572

(0)

117 3

25,000

Valuation difference on available-for -sale securities 1,176

(0) 21,887

133,973

(1,215) (1,400)

–

Total shareholders’ equity

(1,400) 117 3

4,360

(1,282)

3,077

91,606

(1,442)

137,051

Accumulated other comprehensive income Deferred gains or losses on hedges (0)

Revaluation reserve for land

Remeasure ments of defined benefit plans

1,466

–

Total accumulated other comprehensi ve income 2,642

Subscription rights to shares

173

Minority interests

1,683

Total net assets

138,472

(1,215) 5,572 (1,400) 117 3 14,445

(0)

(3)

–

14,441

134

369

14,945

14,445

(0)

(3)

–

14,441

134

369

18,022

15,621

(1)

–

17,083

307

2,052

156,495

1,463

-7-

Fiscal year ended March 31, 2014 (Millions of yen)

Shareholders’ equity Capital stock Balance at the beginning of current period Changes of items during the period Dividends from surplus Net income Purchase of treasury stock Disposal of treasury stock Reversal of revaluation reserve for land Net changes of items other than shareholders’ equity Total changes of items during the period Balance at the end of current period

Balance at the beginning of current period Changes of items during the period Dividends from surplus Net income Purchase of treasury stock Disposal of treasury stock Reversal of revaluation reserve for land Net changes of items other than shareholders’ equity Total changes of items during the period Balance at the end of current period

25,000

Capital surplus 21,887

Retained earnings 91,606

Treasury stock (1,442)

(1,188)

Total shareholders’ equity 137,051

(1,188)

7,849

7,849 (0) 250

1

(0) 250 1

–

–

6,661

250

6,911

25,000

21,887

98,268

(1,192)

143,963

Valuation difference on available-for -sale securities 15,621

Accumulated other comprehensive income Deferred gains or losses on hedges (1)

Revaluation reserve for land

Remeasure ments of defined benefit plans

1,463

–

Total accumulated other comprehensi ve income 17,083

Subscription rights to shares

307

Minority interests

2,052

Total net assets

156,495

(1,188) 7,849 (0) 250 1 (642)

(0)

(1)

117

(525)

181

129

(642)

(0)

(1)

117

(525)

181

129

6,696

488

2,182

163,192

14,979

(1)

1,462

-8-

117

16,557

(215)

Fiscal year ended March 31, 2014

Capital stock Balance at the beginning of current period Changes of items during the period Dividends from surplus Net income Purchase of treasury stock Disposal of treasury stock Reversal of revaluation reserve for land Net changes of items other than shareholders’ equity Total changes of items during the period Balance at the end of current period

Balance at the beginning of current period Changes of items during the period Dividends from surplus Net income Purchase of treasury stock Disposal of treasury stock Reversal of revaluation reserve for land Net changes of items other than shareholders’ equity Total changes of items during the period Balance at the end of current period

242,907

(Thousands of U.S. dollars) Shareholders’ equity Total Capital Retained Treasury shareholders’ surplus earnings stock equity 212,660

890,069

(14,010)

(11,542)

(11,542)

76,263

76,263 (0) 2,429

9

– 242,907

Valuation difference on available-for -sale securities 151,778

– 212,660

1,331,626

(0) 2,429 9

64,720

2,429

67,149

954,799

(11,581)

1,398,785

Accumulated other comprehensive income Deferred gains or losses on hedges (9)

Revaluation reserve for land

Remeasure ments of defined benefit plans

14,214

–

Total accumulated other comprehensi ve income 165,983

Subscription rights to shares

2,982

Minority interests

19,937

Total net assets

1,520,549

(11,542) 76,263 (0) 2,429 9 (6,237)

(0)

(9)

1,136

(5,101)

1,758

1,253

(2,089)

(6,237)

(0)

(9)

1,136

(5,101)

1,758

1,253

65,060

4,741

21,200

1,585,619

145,540

(9)

14,205

-9-

1,136

160,872

(4) Consolidated Statement of Cash Flows (Millions of yen) Fiscal year ended March 31, 2013 Net cash provided by (used in) operating activities Income before income taxes and minority interests Depreciation and amortization Impairment loss Loss (gain) on change in equity Increase (decrease) in allowance for loan losses Increase (decrease) in provision for bonuses Increase (decrease) in provision for directors’ bonuses Increase (decrease) in provision for retirement benefits Increase (decrease) in net defined benefit asset Increase (decrease) in net defined benefit liability Increase (decrease) in provision for directors’ retirement benefits Increase (decrease) in provision for reimbursement of deposits Increase (decrease) in provision for contingent loss Gain on fund management Financing expenses Loss (gain) related to securities Loss (gain) on money held in trust Foreign exchange losses (gains) Loss (gain) on disposal of noncurrent assets Net decrease (increase) in loans and bills discounted Net increase (decrease) in deposit Net increase (decrease) in negotiable certificates of deposit Net increase (decrease) in borrowed money (excluding subordinated borrowings) Net decrease (increase) in deposit (excluding deposit paid to Bank of Japan) Net decrease (increase) in call loans Net decrease (increase) in foreign exchanges-assets Net increase (decrease) in foreign exchanges-liabilities Proceeds from fund management Payments for finance Net decrease (increase) in lease receivables and investment assets Other, net

14,304 1,107 65 – 666 19 2

138,981 10,755 631 – 6,471 184 19

(1,384)

(13,447)

(1,102) 864

(10,707) 8,394

(11)

(7)

(68)

98

27

262

9,504 1,123 51 (9) (1,481) (9) 2 (632) – –

8 (45,854) 2,422 1,890 (39) (6,113) 61 (30,297) 95,450 11,645

205

136 (451,476) 21,288 (18,966) 19 (54,935) 670 (278,614) 641,031 1,991

(2,752)

(26,739)

(2,482)

4,413

42,877

(26)

150,999 (1,010) 11

1,467,149 (9,813) 106

46,722 (3,761)

48,445 (2,261)

470,705 (21,968)

(216)

(547)

(5,314)

470

8,375

81,373

19,596

205,950

2,001,068

Income taxes paid

(1,453)

Net cash provided by (used in) operating activities

18,143

- 10 -

14 (46,466) 2,191 (1,952) 2 (5,654) 69 (28,675) 65,975

(1,699)

(57,999) 781

Subtotal

Fiscal year ended March 31, 2014

(Thousands of U.S. dollars) Fiscal year ended March 31, 2014

(2,107) 203,842

(20,472) 1,980,586

Fiscal year ended March 31, 2013

Fiscal year ended March 31, 2014

(Thousands of U.S. dollars) Fiscal year ended March 31, 2014

(186,782) 76,948 64,713 (772) 206

(277,477) 86,749 90,990 (2,670) 57

(2,696,045) 842,877 884,084 (25,942) 553

(45,686)

(102,350)

(994,461)

2,000 (2,000) (1,213) (1) (1,400) 110 (5)

1,000 (1,000) (1,186) (2) (0) 274 (108)

9,716 (9,716) (11,523) (19) (0) 2,662 (1,049)

(2,511)

(1,023)

(9,939)

(Millions of yen)

Net cash provided by (used in) investing activities Purchase of securities Proceeds from sales of securities Proceeds from redemption of securities Purchase of tangible fixed assets Proceeds from sales of tangible fixed assets Net cash provided by (used in) investing activities Net cash provided by (used in) financing activities Proceeds from subordinated borrowings Repayments of subordinated borrowings Cash dividends paid Cash dividends paid to minority shareholders Purchase of treasury stock Disposal of treasury stock Repayments of lease obligations Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents

7

13

126 976,301

(30,046)

100,481

Cash and cash equivalents at beginning of period

88,145

58,099

564,506

Cash and cash equivalents at end of period

58,099

158,581

1,540,818

Net increase (decrease) in cash and cash equivalents

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[The Tokushima Bank, Ltd.] (1) Balance Sheets As of March 31, 2013

As of March 31, 2014

(Thousands of U.S. dollars) As of March 31, 2014

17,869 11,752 6,116 116,000 148 98 50 4,459 298,370 108,586 12,754 56,369 17,922 102,737 893,316 10,455 114,794 691,230 76,835 1,780 1,277 142 360 4,873 14 1,639 538 2,680 12,786 3,845 8,399 1 86 454 64 64 – 2,194 4,621 (13,351)

114,798 14,119 100,679 – 5 5 – 4,453 379,373 92,675 21,824 115,210 18,009 131,653 894,817 8,176 103,284 699,998 83,357 1,947 1,396 151 399 3,131 18 1,713 216 1,182 14,661 3,661 8,390 506 1,373 728 64 64 822 1,109 3,862 (13,277)

1,115,410 137,184 978,225 – 48 48 – 43,266 3,686,095 900,456 212,048 1,119,413 174,980 1,279,178 8,694,296 79,440 1,003,536 6,801,379 809,920 18,917 13,563 1,467 3,876 30,421 174 16,643 2,098 11,484 142,450 35,571 81,519 4,916 13,340 7,073 621 621 7,986 10,775 37,524 (129,003)

(Millions of yen)

Assets Cash and due from banks Cash Due from banks Call loans Trading account securities Trading government bonds Trading local government bonds Money held in trust Securities Government bonds Local government bonds Corporate bonds Stocks Other securities Loans and bills discounted Bills discounted Loans on bills Loans on deeds Overdrafts Foreign exchanges Due from foreign banks (our accounts) Foreign bills bought Foreign bills receivable Other assets Prepaid expenses Accrued income Derivatives other than for trading-assets Other Tangible fixed assets Buildings, net Land Lease assets, net Construction in progress 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 loan losses Total assets

1,343,133

- 12 -

1,405,771

13,658,870

As of March 31, 2013

As of March 31, 2014

(Thousands of U.S. dollars) As of March 31, 2014

1,212,779 31,957 405,671 23,815 1,868 695,021 5,381 49,063 35,538 14,645 14,645 13 13 3,658 89 1,047 499 3 788 1 35 1,193 22 189 141 1,084 4,621

1,267,259 33,227 461,320 23,216 2,585 706,226 5,107 35,575 35,743 12,059 12,059 25 25 13,235 633 1,170 847 2 506 531 35 9,507 26 217 157 1,084 3,862

12,313,048 322,842 4,482,316 225,573 25,116 6,861,892 49,621 345,656 347,289 117,168 117,168 242 242 128,595 6,150 11,368 8,229 19 4,916 5,159 340 92,372 252 2,108 1,525 10,532 37,524

1,272,694

1,333,670

12,958,317

11,036 9,514 9,514 41,920 2,280 39,639 34,638 5,001

11,036 9,514 9,514 44,675 2,280 42,395 34,638 7,756

107,228 92,440 92,440 434,075 22,153 411,921 336,552 75,359

62,470

65,226

633,754

(Millions of yen)

Liabilities Deposits Current deposits Ordinary deposits Saving deposits Deposits at notice Time deposits Installment savings Other deposits Negotiable certificates of deposit Borrowed money Borrowings from other banks Foreign exchanges Foreign bills sold Other liabilities Income taxes payable Accrued expenses Unearned revenue Reserve for interest on installment savings Derivatives other than for trading-liabilities Lease obligations Asset retirement obligations Other Provision for directors’ bonuses Provision for reimbursement of deposits Provision for contingent loss Deferred tax liabilities for land revaluation Acceptances and guarantees Total liabilities Net assets Capital stock Capital surplus Legal capital surplus Retained earnings Legal retained earnings Other retained earnings General reserve Retained earnings brought forward Total shareholders’ equity Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land

6,506 (1) 1,463

52,594 (9) 14,205

7,968

6,874

66,789

70,439

72,100

700,544

1,343,133

1,405,771

13,658,870

Total valuation and translation adjustments Total net assets Total liabilities and net assets

5,413 (1) 1,462

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(2) Statements of Income Fiscal year ended March 31, 2013

Fiscal year ended March 31, 2014

(Thousands of U.S. dollars) Fiscal year ended March 31, 2014

26,430 22,478 18,893 3,424 119 16 24 2,399

27,551 22,248 18,141 3,958 54 73 19 2,533

267,693 216,167 176,263 38,457 524 709 184 24,611

738

729

7,083

1,661 357 182 0 173 1,196 337 326 39 493 21,905 1,062 876 65 106 14 1,368

1,803 1,095 154 – 941 1,673 351 714 – 608 21,882 918 738 61 104 13 1,470

17,518 10,639 1,496 – 9,143 16,255 3,410 6,937 – 5,907 212,611 8,919 7,170 592 1,010 126 14,282

138

138

1,340

1,229 198 – 72 122 3 13,787 5,487 2,429 1,823 303

1,332 233 0 175 46 10 13,592 5,667 2,454 2,898 –

12,942 2,263 0 1,700 446 97 132,063 55,062 23,843 28,157 –

406

19

184

– 525

2 292

19 2,837

4,525

5,668

55,071

(Millions of yen)

Ordinary income Interest income Interest on loans and discounts Interest and dividends on securities Interest on call loans Interest on deposits with banks Other interest income Fees and commissions Fees and commissions on domestic and foreign exchanges Other fees and commissions Other ordinary income Gains on foreign exchange transactions Gain on trading account securities transactions Gains on sales of bonds Other income Recoveries of written off claims Gain on sales of stocks and other securities Gain on money held in trust Other Ordinary expenses Interest expenses Interest on deposits Interest on negotiable certificates of deposit Interest on borrowings and rediscounts Other interest expenses Fees and commissions payments Fees and commissions on domestic and foreign exchanges Other fees and commissions Other ordinary expenses Loss on trading account securities transactions Loss on sales of bonds Loss on devaluation of bonds Other General and administrative expenses Other expenses Provision of allowance for loan losses Written-off of loans Losses on sales of stocks and other securities Losses on devaluation of stocks and other securities Loss on money held in trust Other Ordinary profit

- 14 -

Fiscal year ended March 31, 2013

Fiscal year ended March 31, 2014

(Thousands of U.S. dollars) Fiscal year ended March 31, 2014

– – 38 14 24

225 225 62 16 45

2,186 2,186 602 155 437

Income before income taxes

4,486

5,831

56,655

Income taxes-current Income taxes-deferred

126 2,086

822 1,637

7,986 15,905

Total income taxes

2,212

2,459

23,892

Net income

2,274

3,371

32,753

(Millions of yen)

Extraordinary income Gain on liquidation of subsidiaries Extraordinary loss Loss on disposal of noncurrent assets Impairment loss

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[The Kagawa Bank, Ltd.] (1) Balance Sheets As of March 31, 2013

As of March 31, 2014

(Thousands of U.S. dollars) As of March 31, 2014

47,362 13,001 34,360 35,000 15,000 124 187 187 328,460 103,140 14,274 109,903 19,312 81,829 952,576 14,446 61,745 825,829 50,554 1,873 1,768 104 2,798 16 1,640 0 1,140 24,118 4,058 18,846 143 170 900 108 61 46 – 319 4,174 (9,926)

46,529 15,295 31,233 – 15,000 – 195 195 358,891 116,479 16,815 124,317 21,810 79,469 979,316 12,329 61,475 853,433 52,077 2,715 2,586 128 2,436 19 1,535 6 875 24,334 4,035 18,843 290 73 1,090 56 9 46 158 – 3,364 (10,756)

452,089 148,610 303,468 – 145,744 – 1,894 1,894 3,487,087 1,131,743 163,379 1,207,899 211,912 772,143 9,515,312 119,792 597,308 8,292,197 505,994 26,379 25,126 1,243 23,668 184 14,914 58 8,501 236,436 39,205 183,083 2,817 709 10,590 544 87 446 1,535 – 32,685 (104,508)

(Millions of yen)

Assets Cash and due from banks Cash Due from banks Call loans Receivables under resale agreements Monetary claims bought Trading account securities Trading government bonds Securities Government bonds Local government bonds Corporate bonds Stocks Other securities Loans and bills discounted Bills discounted Loans on bills Loans on deeds Overdrafts Foreign exchanges Due from foreign banks (our accounts) Foreign bills receivable Other assets Prepaid expenses Accrued income Derivatives other than for trading-assets Other Tangible fixed assets Buildings, net Land Lease assets, net Construction in progress Other tangible fixed assets Intangible fixed assets Software Other intangible fixed assets Prepaid pension cost Deferred tax assets Customers’ liabilities for acceptances and guarantees Allowance for loan losses Total assets

1,402,177

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1,422,241

13,818,898

As of March 31, 2013

As of March 31, 2014

(Thousands of U.S. dollars) As of March 31, 2014

1,285,895 35,758 494,075 23,170 1,918 711,724 10,194 9,052 8,500 1,450 1,450 5,225 884 1,758 660 8 4 – 1,908 266 30 478 185 142 – 4,474 4,174

1,296,928 35,320 499,326 23,620 3,338 715,052 10,170 10,099 8,500 1,216 1,216 11,106 2,229 1,599 939 5 4 306 6,021 273 27 – 185 140 607 4,466 3,364

12,601,321 343,179 4,851,593 229,498 32,432 6,947,648 98,814 98,124 82,588 11,815 11,815 107,909 21,657 15,536 9,123 48 38 2,973 58,501 2,652 262 – 1,797 1,360 5,897 43,392 32,685

1,310,823

1,326,817

12,891,731

12,014 9,339 9,339 54,404 2,674 51,729 29 43,436 8,263

12,014 9,339 9,339 57,944 2,674 55,269 28 43,436 11,804

116,731 90,740 90,740 563,000 25,981 537,009 272 422,036 114,691

75,758

79,298

770,481

9,491 0 6,634

92,217 0 64,457 156,675

(Millions of yen)

Liabilities Deposits Current deposits Ordinary deposits Saving deposits Deposits at notice Time deposits Installment savings Other deposits Negotiable certificates of deposit Borrowed money Borrowings from other banks Other liabilities Income taxes payable Accrued expenses Unearned revenue Reserve for interest on installment savings Derivatives other than for trading-liabilities Lease obligations Other Provision for bonuses Provision for directors’ bonuses Provision for retirement benefits Provision for reimbursement of deposits Provision for contingent loss Deferred tax liabilities Deferred tax liabilities for land revaluation Acceptances and guarantees Total liabilities Net assets Capital stock Capital surplus Legal capital surplus Retained earnings Legal retained earnings Other retained earnings Reserve for reduction entry General reserve Retained earnings brought forward Total shareholders’ equity Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land

8,951 (0) 6,644

Total valuation and translation adjustments

15,595

16,125

Total net assets

91,353

95,424

927,166

1,402,177

1,422,241

13,818,898

Total liabilities and net assets

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(2) Statements of Income Fiscal year ended March 31, 2013

Fiscal year ended March 31, 2014

(Thousands of U.S. dollars) Fiscal year ended March 31, 2014

28,216 23,128 19,762 3,271 46 12 19 16 3,167

29,815 23,822 19,210 4,520 44 14 20 12 3,296

289,691 231,461 186,649 43,917 427 136 194 116 32,024

951

945

9,181

2,216 1,002 140 291 –

2,351 1,368 120 361 254

22,842 13,291 1,165 3,507 2,467

354

192

1,865

216 917 516 37 363 23,105 1,280 1,246 27 – 5 0 1,856

439 1,328 724 151 451 21,994 1,202 1,175 20 0 3 3 1,949

4,265 12,903 7,034 1,467 4,382 213,699 11,678 11,416 194 0 29 29 18,937

170

171

1,661

1,685 303 1 56 41 203 15,205 4,459 1,567 2,074 426 5 385

1,778 338 2 104 – 231 15,240 3,263 2,315 725 22 1 196

17,275 3,284 19 1,010 – 2,244 148,076 31,704 22,493 7,044 213 9 1,904

5,110

7,820

75,981

(Millions of yen)

Ordinary income Interest income Interest on loans and discounts Interest and dividends on securities Interest on call loans Interest on receivables under resale agreements Interest on deposits with banks Other interest income Fees and commissions Fees and commissions on domestic and foreign exchanges Other fees and commissions Other ordinary income Gains on foreign exchange transactions Gains on sales of bonds Gains on redemption of bonds Income from derivatives other than for trading or hedging Other Other income Recoveries of written off claims Gain on sales of stocks and other securities Other Ordinary expenses Interest expenses Interest on deposits Interest on negotiable certificates of deposit Interest on call money Interest on borrowings and rediscounts Other interest expenses Fees and commissions payments Fees and commissions on domestic and foreign exchanges Other fees and commissions Other ordinary expenses Loss on trading account securities transactions Loss on sales of bonds Loss on redemption of bonds Other General and administrative expenses Other expenses Provision of allowance for loan losses Written-off of loans Losses on sales of stocks and other securities Losses on devaluation of stocks and other securities Other Ordinary profit

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(Millions of yen) Fiscal year ended March 31, 2013

Fiscal year ended March 31, 2014

(Thousands of U.S. dollars) Fiscal year ended March 31, 2014

3 3 79 51 28

6 6 83 61 22

58 58 806 592 213

Income before income taxes

5,034

7,743

75,233

Income taxes-current Income taxes-deferred

1,382 (65)

2,972 634

28,876 6,160

Total income taxes

1,316

3,607

35,046

Net income

3,717

4,135

40,176

Extraordinary income Gain on disposal of noncurrent assets Extraordinary loss Loss on disposal of noncurrent assets Impairment loss

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3. Company Information / Stock Information Company Information (as of March 31, 2014) Trade name: TOMONY Holdings, Inc. The Tokushima Bank, Ltd. Date of April 2010 March 1918 establishment: Listing date: April 2010 December 1990 to March 2010 Business year: From April 1 to March 31 From April 1 to March 31 Paid-in capital: ¥25,000 million ¥11,036 million Number of 2,100 (excluding contract 951 (excluding contract and employees and temporary employees) temporary employees) Head office: 7-1 Kamei-cho, 1-16 Tomidahama, Takamatsu-shi, Kagawa Tokushima-shi, Tokushima Telephone: +81-87-812-0102 +81-88-623-3111 Consolidated The Tokushima Bank, Ltd. Tokugin Business Service subsidiaries: The Kagawa Bank, Ltd. Co., Ltd. TOMONY System, Inc. TOMONY Card, Inc. Tokugin Business Service Tokugin Capital Co., Ltd. Co., Ltd. Kagawa Business Service Co., Ltd. TOMONY Lease, Inc. Kagawagin Computer Service Co., Ltd. TOMONY Card, Inc. Tokugin Capital Co., Ltd.

Directors and Corporate Auditors (as of July 1, 2014) Representative Director and Chairman Representative Director, President and CEO Managing Director Managing Director Managing Director Managing Director Director Director Director* Corporate Auditor (Standing)** Corporate Auditor** Corporate Auditor Corporate Auditor** * Outside Director ** Outside Corporate Auditor

Shinichi Kakiuchi Seiji Toyama Kuniaki Takahashi Koichi Yamakawa Shinichi Mori Yoshihumi Gamo Hiromi Yoshioka Masaharu Shimomura Toshiya Onishi Katsura Tada Satoru Inoue Tsutomu Manabe Noboru Ohira

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The Kagawa Bank, Ltd. February 1943 October 1988 to March 2010 From April 1 to March 31 ¥12,014 million 980 (excluding contract and temporary employees) 6-1 Kamei-cho, Takamatsu-shi, Kagawa +81-87-861-3121 TOMONY Lease, Inc. Kagawa Business Service Co., Ltd. Kagawagin Computer Service Co., Ltd.

Stock Information (as of March 31, 2014) Total number of authorized shares: Total number of shares issued: Number of shareholders: Major shareholders (Top 10)

476,000,000 shares 152,434,888 shares 10,028 Number of shares held (Thousands)

Share-holding ratio (%)

9,476

6.21

4,981

3.26

3,775

2.47

CBNY DFA INTL SMALL CAP VALUE PORTFOLIO (Standing proxy: Citibank Japan Ltd.)

3,318

2.17

Sompo Japan Insurance Inc. (Standing proxy: Trust & Custody Services Bank, Ltd.)

3,107

2.03

The Master Trust Bank of Japan, Ltd. (Employee Stock Ownership Plan ESOP Trust Account 75562)

2,914

1.91

2,858

1.87

2,556

1.67

2,556

1.67

2,014

1.32

37,560

24.64

Shareholder name Japan Trustee Services Bank, Ltd. (Trust Account) TOMONY Holdings Employee Shareholding Association Nichia Corporation

The Master Trust Bank of Japan, Ltd. (Trust Account) Nippon Meat Packers, Inc. Japan Trustee Services Bank, Ltd. (Trust Account 4) Tokio Marine & Nichido Fire Insurance Co., Ltd. Total Note:

The Master Trust Bank of Japan, Ltd. (Employee Stock Ownership Plan ESOP Trust Account 75562) is a trust that was established in conjunction with the adoption of the Employee Stock Ownership Plan ESOP Trust. Such shares are accounted for as treasury stock in both the consolidated financial statements and the non-consolidated financial statements.

* The financial statements in this Annual Report are stated in Japanese yen with amounts of less than one million yen omitted. As a result, the totals shown do not necessarily agree with the sums of the individual amounts. The translation of Japanese yen amounts into U.S. dollar amounts is included solely for the convenience of investors outside Japan. Such translation is carried out at the rate of ¥102.92 = U.S. $1, the approximate rate of exchange at March 31, 2014, and the resultant amounts are shown with amounts of less than 1,000 U.S. dollars omitted. * While every best effort has been made to provide a translation meeting the quality standards required of professionals, the Company does not guarantee it is 100% accurate. Therefore, please verify the original Japanese text for any final judgments made based on this information.

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