IR Presentation Results for Fiscal Year Ended March 31, 2015 June 2, 2015

Materials were prepared for the Bank’s presentation of its results for the fiscal year ended March 31, 2015 held on June 2, 2015. Contents

1. Financial Results for FY2015 2. Outline of the Medium-term Management Plan

Summary of profits and losses 1 Summary of the previous Medium-term Management Plan “POWER for the Future” 8 Interest income 2 Business environment and management issues 9 Loans and bills discounted 3 Outline of the Medium-term Management Plan “VALUE UP: Challenge Value Creation” 10 Deposits and certificates of deposits 4 Basic objectives and long-term vision 11 Securities 5 Priorities 1: Strengthen earthquake recovery support 12 Assets in custody 6 Priorities 2: Reinforce the earnings base 14 Credit-related expenses/capital adequacy ratio/ credits disclosed under the Financial Reconstruction Law 7 Priorities 3: Enhance the value of the region 17 Priorities 4: Smooth migration to and utilization of MEJAR 20 Numerical targets 21 3. Projected Performance Projected performance for FY2016 23 1. Financial Results for FY2015 Summary of profits and losses

(JPY bn, %) YoY change Summary of profits and losses FY2014 FY2015 Increase/ Rate of (Non-consolidated) decrease change % Gross operating income 77.9 80.1 2.2 2.9 [Core gross operating income] [ 80.3 ] [ 80.3 ] 0.0 ] [0.0 ] Interest income 70.0 70.2 0.2 0.2 Interest income was basically Fees and commissions 10.2 10.3 0.1 1.1 unchanged YoY owing to the Other operating income (2.3) (0.4) 1.9 increase in interest and dividends Gains (losses) on bonds (2.4) (0.2) 2.2 on securities, but core operating Expenses 55.3 57.1 1.8 3.2 income declined, mainly due to Operating income before provision of 22.6 23.0 0.4 1.9 the higher IT expenses following general reserve for possible loan losses the migration to MEJAR. [Core operating income] [ 25.0 ] [ 23.2 ] [ (1.8) ] [ (7.0) ] Provision of general reserve for possible — — — loan losses Operating income 22.6 23.0 0.4 1.9 Special income and losses 2.9 7.5 4.6 Bad debt disposals (-) 1.3 0.8 (0.5) Both ordinary and net incomes Gains on reversal of reserve for 2.0 4.6 2.6 rose, mainly due to the decline in possible loan loss credit-related expenses and Gains (losses) on stocks 0.6 1.0 0.4 gains on money held in trust, Gains (losses) on investments in 1.2 2.9 1.7 mainly due to the rise in stock money held in trust prices, etc. Ordinary income 25.5 30.5 5.0 19.6 Extraordinary income 0.2 — (0.2) Extraordinary loss 0.1 0.2 0.1 Income taxes (incl. deferred taxes) 10.9 13.4 2.5 Net income 14.7 16.9 2.2 14.4

Credit-related expenses (0.7) (3.8) (3.1)

1 1. Financial Results for FY2015 Interest income

(JPY bn) FY2016 FY2014 FY2015 YoY change (Plan) YoY change Interest income was basically unchanged Interest income 70.0 70.2 0.2 69.5 (0.7) YoY, as the increase in interest and Investment income 73.5 73.9 0.4 dividends on securities offset the (Interest on loans and 46.8 45.4 (1.4) decrease in interest on loans and bills bills discounted) discounted due to lower yields. (Interest and dividends 26.3 28.2 1.9 on securities) Fund procurement 3.5 3.7 0.2 costs Factors in securities (JPY bn) (Interest on deposits) 3.0 2.9 (0.1) +1.9 Average Factors in deposits balances +0.1 (JPY bn) +2.7 Average Yield balances Yield Major accounts +1.5 FY2014 FY2015 FY2014 FY2015 (average balances) +0.4 +0.2 YoY change Interest Interest Loans and bills discounted 3,835.4 4,054.5 219.1 income income Securities 3,554.4 3,616.9 62.5 70.0 (0.1) (0.4) 70.2 Average Deposits and certificates of Other 7,431.2 7,544.6 113.4 balances deposits (4.1) (%) Yield

Interest rates/ Factors in loans (1.4) FY2014 FY2015 Interest margin YoY change Loans and bills discounted 1.21 1.11 (0.10) interest rate Trends of market interest rates Securities interest rate 0.73 0.78 0.05 FY2014 FY2015 YoY change Interest rate on deposits 0.04 0.03 (0.01) JPY TIBOR (3 months) 0.22% 0.20% (0.02) % Interest rate spread 0.90 0.88 (0.02) 5-year JGBs 0.24% 0.13% (0.11) % Net interest margin 0.17 0.13 (0.04) 10-year JGBs 0.69% 0.48% (0.21) % * Figures in YoY change (increase/decrease) show percentage points.

2 1. Financial Results for FY2015 Loans and bills discounted

(JPY bn, %) Loans and bills FY2016 discounted FY2014 FY2015 YoY change (Plan) YoY change (average balances) 4,117.5 1.5 Average balance of loans and bills Loans and bills discounted 3,835.4 4,054.5 5.7 discounted increased 5.7% YoY, as Corporate loans 2,372.6 2,485.2 4.7 housing loans and loans to SMEs [Excl. spread loans] 1,227.0 1,266.9 3.2 and loans to large corporations [Spread loans] 1,145.6 1,218.3 6.3 each increased. Retail loans 774.9 833.2 7.5 [Housing loans] 734.5 794.3 8.1 Loans for local 687.9 736.1 7.0 governments

(JPY bn) Corporate Retail Public, etc. Cumulative total of earthquake disaster-related loans 4,227.7 19,981 cases / JPY 498.2 billion 4,007.8 (after the earthquake to end-Mar. 2015) 4,000.0 3,770.8 3,505.8 781.8  Corporate (cases, JPY bn) 754.4 734.0 Capital 675.6 Operating Total 3,000.0 865.8 expenditure 810.9 755.8 Cases 5,265 1,870 7,135 759.4 Amount 205.6 102.7 308.3 2,000.0  Retail (cases, JPY bn) 2,580.1 2,281.0 2,442.5 Unsecured Housing Total 1,000.0 2,070.8 Cases 3,790 9,056 12,846 Amount 6.6 183.3 189.9 0.0 Mar.H23/3 2011 Mar. H25/3 2013 Mar. H26/3 2014 Mar. H27/3 2015 (Immediately after the earthquake) 3 1. Financial Results for FY2015 Deposits and certificates of deposits

(JPY bn, %) Deposits and certificates FY2016 of deposits FY2014 FY2015 YoY change (Plan) YoY change (average balances) 7,327.0 (2.8) • Average balance of deposits rose Deposits and certificates 7,431.2 7,544.6 1.5 1.5% YoY, as retail deposits and of deposits corporate deposits increased. Retail deposits 4,429.8 4,517.9 1.9 • Term-end balance decreased Corporate deposits 1,561.8 1,594.9 2.1 0.2% YoY, mainly due to the Public deposits 1,415.5 1,407.8 (0.5) decline in public deposits, etc. Retail Corporate Public, etc. (JPY bn)  Recovery grants from the government 1,835.6 1,819.6 1,711.7 (Miyagi Pref. portion) (as of end-Mar. 2015)

6,000.0 5,636.4 • Recovery grants ...... Approx. JPY 1,500.0 billion (Source: Reconstruction Agency HP) 479.7 1,587.3 1,550.9 1,602.9 • Special local allocation tax grants for recovery from earthquake disaster ...... Approx. JPY 1,070.0 billion 1,378.7 (Source: Ministry of Internal Affairs and 4,000.0 Communications HP) 4,555.9 4,454.0  Insurance payouts, etc. (Miyagi Pref. portion) 4,363.6 3,778.0 2,000.0 • Earthquake insurance payouts ...... Approx. JPY 560.0 billion (Source: The General Insurance (as of May 31, 2012) Association of Japan HP) • Relief funds ...... Approx. JPY 182.0 billion 0.0 (Source: Japanese Red Cross Society HP) (as of Jul. 7, 2014) Mar.H23/3 2011 Mar. H25/3 2013 Mar. H26/3 2014 Mar. H27/3 2015 (Immediately after the earthquake) 4 1. Financial Results for FY2015 Securities

* Yen-dominated bonds other yen-denominated bonds> than investment trusts • Continued investments mainly in short- and medium-term Modified duration public bonds in light of the decrease in public deposits 4.0 Yields (%) 3.0 and the interest rate risk. • Increase in valuation gains on stocks and investment 2.84 3.47 3.47 trusts, mainly due to the rise in stock prices, etc. 3.0 3.27 3.13 2.0 2.70 2.0 Excluding impact of the earthquake 0.57 1.0 End-Mar. 2014 End-Mar. 2015 1.0 0.98 Investment balance Approx. JPY 940.0 billion Approx. JPY 810.0 billion 0.80 0.58 0.53 Yield 0.30% 0.31% 0.47 Modified duration 2.48 2.35 0.0 0.0 Mar. 2011 Mar. 2012 Mar. 2013 Mar. 2014 Mar. 2015

(JPY bn)

Gains (losses) Change from End-Mar. 2011 End-Mar. 2012 End-Mar. 2013 End-Mar. 2014 End-Mar. 2015 from revaluation YoY change YoY change, % end-Mar. 2015 end-Mar. 2014 Securities 2,118.0 2,849.4 3,402.9 3,716.5 3,683.6 (32.9) (0.9) % 183.6 69.0 Bonds 2,024.1 2,764.3 3,304.6 3,603.7 3,541.1 (62.6) (1.7) % 103.3 39.3 (Yen-denominated 1,780.9 2,552.6 2,966.0 3,177.0 3,036.4 (140.6) (4.4) % 39.1 (0.2) bonds) National gov. bonds 864.8 1,577.1 1,993.1 2,152.4 2,003.3 (149.1) (6.9) % 22.5 (0.2) Floating-rate national 365.5 319.6 315.5 318.1 317.4 (0.7) (0.2) % 5.0 (0.7) gov. bonds Local gov. bonds 107.9 82.2 87.9 76.5 75.6 (0.9) (1.2) % 0.9 0.3 Corporate bonds 760.7 865.7 865.7 933.9 950.7 16.8 1.8% 15.7 (0.2) Others 290.7 239.3 357.9 440.9 511.5 70.6 16.0% 64.2 39.4 Investment trusts, etc. 125.1 129.2 190.3 214.6 274.7 60.1 28.0% 63.8 36.5 Foreign bonds 165.6 110.1 167.6 226.3 236.8 10.5 4.6% 0.4 2.9 Stocks 93.9 85.1 98.3 112.8 142.5 29.7 26.3% 80.3 29.7

5 1. Financial Results for FY2015 Assets in custody

(JPY bn, %) Sales of assets in FY2014 FY2015 custody YoY change Total 185.4 180.7 (2.5) Fees and commissions increased due to the steady Investment trusts 32.6 44.1 35.2 sales of investment trusts and insurance that offset the Insurance 46.3 47.6 2.8 decline in sales of public bonds owing to lower yields. Public bonds 106.5 89.0 (16.4)

Investment Insurance Public bonds (JPY mn) trusts 2,135 Investment 1,999 (JPY bn) Insurance Public bonds 800.0 trusts 2,000 1,823 1,729 701.0 697.6 686.4 684 986 1,141 662.1 741 91.7 99.1 100.2 91.1 1,000 600.0 944 847 770 758 188.6 224.3 149.3 0 195 139 242 234 255.9 FY2012H23年度 FY2013H24年度 FY2014H25年度 FY2015H26年度 400.0  Strengthened sales of investment trusts and insurance  Sales structure • Cooperation between HQ money advisors and branch representatives, visiting customers together 421.7 409.9 • Expansion of counters dedicated to insurance 200.0 385.0 (Jun. 2014, Opening of the 77 Nagamachi Minami Insurance Plaza) 330.3  Responding to NISA • Obtaining resident cards on behalf of customers (heightened customer convenience) Number. of tax-exempt accounts opened: 16,943  Expansion of product line-up 0.0 • Introduction of wrap funds (Jan. 2015, cultivating inexperienced investors) Mar.H23年度 2012 Mar. H24年度 2013 Mar. H25年度 2014 Mar. H26年度 2015 Funds sold: 463 /approx. JPY 700 million

6 Credit-related expenses/capital adequacy ratio/ 1. Financial Results for FY2015 credits disclosed under the FiFinancialnancial Reconstruction Law  Credit-related expenses  Credits disclosed under the Financial Reconstruction Law  Credit-related expenses and credit-related expense rate trends  Credits disclosed under the Financial Reconstruction Law

(%)8 (JPY80.0 bn) (%) 2.0 Ratio of credits disclosed under the 1.64 Credit-related expenses Financial Reconstruction Law 60.0 Credit-related expense rate 1.5 280.0 6

40.0 1.0 4.71 4 3.77 56.9 3.16 3.31 20.0 0.24 0.5 240.0 2.91 2 (0.03) (0.01) 8.8 (0.08) 0 0.0 0.0 (JPY bn) (1.4) (0.7) (3.8) Substandard Doubtful Loans to bankrupt and quasi-bankrupt (20.0) (0.5) 200.0 loans loans -2 FY2011 FY2012 FY2013 FY2014 FY2015 174.2 -4  Capital adequacy ratio 160.0 -6 37.6  Capital adequacy ratio 144.0 (JPY bn, %) 134.7 -8 124.8 End-Mar. 2014 End-Mar. 2015 28.1 112.8 Capital adequacy ratio (non-consolidated/ 120.0 28.8 -10 12.33 12.19 18.3 domestic standards) (a/c) -12 Capital (a) 359.6 373.8 27.3 96.7 [Core capital: instruments and reserves] 359.6 373.8 80.0 77.1 -14 [Subordinated loans] * (b) 20.0 20.0 73.4 74.7 [Core capital: regulatory adjustments] — 0.0 56.5 -16 Risk assets (c) 2,916.1 3,065.9 40.0 -18 (Ref.) Capital adequacy ratio 11.64 11.53 – [excluding subordinated loans] (a b) / c 39.9 38.9 -20 29.0 32.5 31.8 * We are looking to discuss the subordinated loans 0.0 -22 (public funds) with the authorities around the end of Mar. 2011 Mar. 2012 Mar. 2013 Mar. 2014 Mar. 2015 * The balance of credits disclosed under the Financial Reconstruction Law as of Mar. 2011 shown June 2015 to discuss a repayment schedule. above indicates the balance before we carried out self-assessments in consideration of the effect of the earthquake. 7 2. Outline of the Medium-term Summary of the previous Medium-term Management Plan Management Plan “POWER for the Future”

 Outcome and assessment of basic objectives (JPY bn) Basic targets FY2012 FY2013 FY2014 FY2015 vs. Basic targets Balance of retail loans and bills Achieved JPY 2,150 billion or more 2,093.3 2,138.3 2,261.3 2,410.3 discounted (at the end of FY2015) +260.3 Balance of retail loans and bills Achieved discounted in Miyagi Pref. (at the JPY 2,000 billion or more 1,931.1 1,969.9 2,086.3 2,214.6 +214.6 end of FY2015) Sales of investment trust, insurance, Achieved and public bond (total during JPY 450 billion or more ― 144.5 329.9 510.6 +60.6 Medium-term Management Plan) In mid-years: JPY 11 billion or more Achieved every Net income 10.6 12.1 14.7 16.9 Final year: JPY 13 billion or more year Core OHR (core gross operating Unachieved Less than 67% 67.18% 68.52% 68.87% 71.07% income expense ratio) (FY2015) +4.07% Note: Balance of loans and bills discounted excluding local government and other public authority, Tokyo, Osaka, and Nagoya areas branches as well as head office accounts  Outcome and assessment of priority measures Strengthen loan and Further improve Support earthquake recovery and Continue to develop the financial revitalize the regional economy consulting capabilities productivity services platform ちから POWER (abilities) that has been acquired: (achievement) Ability to build relationships Ability to ascertain needs for funds Ability to enhance productivity Ability to solve problems with customers

 Number of customer visits, net number  Increase in the number of loan officers  Time creation through BPR at branches  Promoting business matching and sales representatives of business loan customers • Over an average of 5 hours per branch per day • Trade fairs Visits Net number of business loan Loan officers Sales representatives (after the earthquake to end-Mar. 2015) customers  Deployment of part-time staff 1,081 Japan 20 meetings (Customers) 675 (In thousand) (People) 939 (People) (668 customers attended) Establishment +1,592 583 Overseas 12 meetings 323 468 of over +362 (98 customers attended) 1,000 Number of business matching contracts total 17,074 1,131 Approx. 3,000 cases 15,482 471 498 769 Loan performance related to the business matching FY2012 FY2015 Approx. JPY 41.2 billion Mar. 2012 Mar. 2015 Mar. 2012 Mar. 2015 POWER (abilities) to be enhanced • More extensive use of the network inside and • Decline in the share of loans in Miyagi Pref. (Problems) outside of the bank • Active attempts to identify problems and needs of • Decline in yield on loans (FY2015: 1.11%) Earnings power (profitability) Proposal capabilities customers

8 2. Outline of the Medium-term Business environment and management issues Management Plan

Distribution of regional banks in 1. Socioeconomic environment 2. Financial environment Tohoku and total deposits

Miyagi Pref. • Progressing earthquake THE Aomori BANK 2.4 Michinoku Bank Regional banks reconstruction 1.9 (A new approach to town planning)  Intensifying competition due to more banks The Akita Bank  Two developments • Industrial transformation through THE BANK OF entering the market in expectation of loan IWATE agglomeration of manufacturing 2.6 demand 3.3 industries  Ongoing management integration and wide- (Ex. TOYOTA MOTOR EAST JAPAN, INC.) Kita-Nippon 1.4 area alliances for survival Hokuto Bank Bank 1.2  Progress of the regional development project in The Tohoku THE SHONAI 0.8  Ultra-low rates to continue on the back of the Sendai Economic Zone BANK 1.3 Bank monetary easing • Sendai Umino-mori Aquarium (to open in Jul. 2015) The Yamagata Bank • Sendai Subway Tozai Line (to open in Dec. 2015) 2.1 7.9 77  Rise of online and retailer-affiliated banks • Privatization of Sendai Airport etc. Kirayaka BANK Bank 1.3  Move away from deposits toward investments 1.1 THE THE DAITO  Aging and decreasing population SENDAI  Uncertainty in the international financial FUKUSHI BANK BANK MA-BANK THE markets  Globalization and hollowing-out of domestic industry 0.8 * Numbers stand for 0.7 5.6 TOHO total deposits as of end- BANK Mar. 2015 (JPY trillion) • Disaster prevention mass • Trends in infrastructure improvements accompanying (TOYOTA MOTOR EAST JAPAN, INC.) the reconstruction and regional developments, etc. relocation business, etc. Automotive industry, IED industry, etc. Complete opening of JOBAN EXPRESSWAY (Mar. 2015) • 195 planned zones Infrastructure • Approx. 15,500 houses are improvements in Reopening of JR Senseki Line (May 2015) planned to be built as public the reconstruction housing for victims Extension of SANRIKU EXPRESSWAY (as far as Hachinohe) • Approx. 10,500 housing lots Redevelopment of Sendai Station East Exit planned to be developed as land Trends in regional lease/lots for sale developments, etc. Relocation of the campus of TOHOKU UNIVERSITY Eight management issues that need to be resolved in light of the achievements and reflection of the previous Medium-term Management Plan and changes to the business environment

Accelerating earthquake Growth and development of the Maintaining and improving Strengthening profitability reconstruction region (regional revitalization) financial soundness

Activating Training of personnel and Migration to and effective Differentiation from competitors intra-bank communications raising motivation use of MEJAR

9 2. Outline of the Medium-term Outline of the Medium-term ManaManagementgement Plan Management Plan “VALUE UP: Challenge Value Creation”  Bank Image Sought by The 77 Bank

““Value-creatingValue-creating bank bank that that grows grows together together with with and and is is the the most most trusted trusted b byy the the region region””

 Name

MediumMedium-term-term Management Management Plan Plan “ “VALVALUEUE UP: UP: Challenge Challenge Value Value Creation Creation””

• Vitality Code of Conduct of Officers and Employees • Activity （Action） We will take action with vitality, undeterred by • Low-cost（Improved productivity） changes, and further improve productivity. At the same time, in order to contribute to the region, • Utility （Contribution） we will make our best efforts and unceasingly take on • Effort challenges of value creation.

 Period （ ） Three years （from April 1, 2015 to March 31, 2018）  Basic policies

1. Strengthen earthquake recovery support

2. Reinforce the earnings base

3. Enhance the value of the region

4. Smooth migration to and utilization of MEJAR

10 2. Outline of the Medium-term Basic objectives and long-term vision Management Plan  Basic objectives Targets for the final year of the Plan (FY2018)

• Net income (*) JPY 20.0 billion or more Enhancement • Increase of interest on loans and discounted of profitability [compared with FY2015] JPY 1.5 billion or more power

Earnings • Fees and commissions JPY 10.5 billion or more

Pursuit of efficiency • Core OHR (core gross operating income expense ratio) Less than 65%

• Increase of loans and bills discounted in Miyagi Prefecture JPY 250.0 billion or more Increase of (balance as of March 31,2018) [compared with the balance as of March 31,2015] the market shares Increase of loans and bills discounted in Sendai JPY 150.0 billion or more Proposal (balance as of March 31,2018) [compared with the balance as of March 31,2015] capabilities

*When net income of JPY20.0 billion or more is achieved, ROE (net income basis) is expected to be around 5%. (JPY bn) FY2005 FY2012 FY2015 FY2018 Target (10 years ago) (3 years ago) Net income 8.9 10.6 16.9 JPY 20.0 billion or more Interest on loans and bills discounted 54.9 52.7 45.4 JPY 47.0 billion or more Fees and commissions 10.4 9.5 10.3 JPY 10.5 billion or more Core OHR 66.20% 67.18% 71.07% Less than 65% Loan balance in Miyagi Pref. 2,425.7 2,657.5 2,917.7 JPY 3,170.0 billion (ref.) ROE 2.71% 3.51% 4.00% (ref.) around 5% (ref.) Market capitalization 297.8 139.9 260.6 —  The Bank’s Configuration in 10 Years (Long-term vision) “Leading bank in the Tohoku region with scale and earnings power ranked within the top 10 regional banks based on the established earnings base capable of coping with any change in the business environment through creation of new value in the region” 1.Total of deposits, loans and assets in custody: around JPY 15 trillion (as of March 31,2015: JPY 12.8 trillion) —Achieve deposits of JPY 8 trillion and loans of JPY 5 trillion— 2. ROE (net income basis): around 7% (FY2015: 4.0%)

11 2. Outline of the Medium-term Priorities 1: Management Plan Strengthen earthquake recovery support (1)

With reconstruction support according to the stage, we will support the reconstruction from the earthquake.

 Active provision of risk money  Strengthening support for business reconstruction and for operations improvement  Earthquake disaster-related loan (after the earthquake to end-Mar. 2015) 19,981 cases / JPY 498.2 billion  Use of credit purchase corporations (The Great East Japan Earthquake SME Reconstruction  ABL performance (after the earthquake to end-Mar. 2015) 90 cases / JPY 15.0 billion Support Fund, Organization for Industry Promotion)

 Recovery development assistance projects for SME group facilities (after the earthquake to end-Mar. 2015) Support (to be) provided: 219 cases Related loans (after the earthquake to end-Mar. 2015) （*） • Bridging finance performance 637 cases / JPY 45.7 billion  Use of guidelines for Individual Debtor Out-of-Court Workouts Agreements :192 cases • Portion of own funds performance 144 cases / JPY 10.9 billion (after the earthquake to end-Mar. 2015) (*) No cases of disagreement so far Redoubled efforts to provide more funds  Business operations improvement support (FY2015) • Number of business operations improvement  Assessment by resident credit officer (presence of locally-based credit officer) 2,709 customers support plans developed • Swift credit response in earthquake-affected areas (trial in Apr. 2015) • Of which, upgraded to higher borrower category 294 customers  Use of reconstruction support fund We will continue to deal squarely with business reconstruction • Miyagi Reconstruction and Regional Revitalization Support Fund and operations improvement (established in Dec. 2014 with REVIC and DBJ)  Executed the first loan in Mar. 2015  Housing loans dedicated for borrowers subject to mass relocation for  External specialists in the Credit Supervision Division disaster prevention (Mar. 2015: six experts) (on an on-going basis) • Aiming to accelerate mass relocation for disaster prevention • Specialized support in coordination with the Enterprise Assistance Dept (12 members) (JPY bn)  Cooperation with the Regional Economy Vitalization Corporation of Japan (REVIC) 15.0 Respond to housing loan needs in accordance with the • Dispatching specified experts (on contracts dated Aug. 2014) reconstruction stage 10.0 • Learning expertise through personnel exchanges (From Mar. 2015, one employee 16.0 dispatched to REVIC) 12.0 5.0  Follow-ups for businesses that used credit purchase corporations 2.3 7.2 0.6 0.0 • Provision of funds, business matching, introduction of public support schemes, etc. FY2014 FY2015 FY2016 FY2017 FY2018 (Plan) (Forecast) (Forecast) 12 2. Outline of the Medium-term Priorities 1: Management Plan Strengthen earthquake recovery support (2)

 Contribution to the reconstruction and development of the region  Support for the growth of local industry  Promoting regional revitalization

 Support for start-ups and new operations Entrepreneurial seminar  Comprehensive strategy for revitalizing the community, people, for women (Oct. 2014) • Cooperation with other support organizations and work • Sendai Startup Support Network (Jul. 2014) • Realizing self-supportive and sustainable local communities • Japan Finance Corporation (Jul. 2014) • Using local resources, creating jobs, revitalizing the regional economy • General Incorporated Association MAKOTO (Aug. 2014) Active involvement as a regional bank • SHOKO CHUKIN BANK (Dec. 2014)  Organizational structure for support (Apr. 2015) Accumulation and use of support expertise • Establishment of the “Regional Revitalization Desk” (Three members of the Regional Development Dept.) • Thirty-three branch managers dealing with local public entities assigned  Help in applications for start-up subsidies and promotion of related loan schemes as regional revitalization officers • Creation of regional comprehensive strategy, active involvement for  Industry-academia-government cooperation and use of other organizations promotion • Approach to PPP/ PFI Local industry- Support Support Other entities Local Public Entities academia-  Focus on growth fields like REVIC, government etc. network • Dedicated staff in the Regional Development Dept. Support

Agriculture, the sixth Cooperation Renewable energies Cooperation industrialization 77 BANK Medical and Manufacturing nursing care Regional Revitalization Desk Regional Revitalization Officers Collaboration Refining support expertise through cooperation with outside experts

 Use of the sixth industrialization fund <77> Community-building College  Expansion of loan product line-up for growth fields • Providing local government workers  Helping local manufacturers expand into new operations with information on problems relating to the aging public infrastructure and the use of PFI for solutions.

13 2. Outline of the Medium-term Priorities 2: Management Plan Reinforce the earnings base (1)

Concerted efforts to address low profitability

 Rebalancing of loan assets—Aiming to increase interest income by shifting to high-profitability assets

 Corporate loans  Retail loans • Strengthening SME lending in the region • Promoting unsecured loans • Enhancing sales and contract response capabilities • Redoubling efforts to deal with sub-performing loans • Ensuring that cross-sale opportunities are taken • Closer cooperation between HQ public relations, Credit, and branch offices • Promoting housing loans • Targeting housing manufacturers through closer cooperation with • Region-wide marketing targeting prime customers loan centers (seven in the prefecture) and branch offices • Information-based marketing tailored to customer needs • Ascertaining fund needs with an eye on community building • Identifying high-yielding loan deals developments, such as the promotion of mass relocation for disaster prevention and the opening of the Tozai subway line • Proposal-based marketing from the perspective of experts • Capturing renovation deals • Promoting cross-border loans and structured financing, etc.

(JPY40.0 bn)

(JPY bn) Miyagi Pref. Sendai City 30.0

20.0 3,000.0 28.7 28.5 2,917.7 10.0 2,766.3 0.0 FY2014 FY2015 FY2016 FY2017 FY2018 2,000.0 (Plan) (Forecast) (Forecast) 1,918.0 2,031.2 900.0 Medium-term Target (JPY bn) Total loans in Miyagi: Increase of 1,000.0 JPY +250 billion or more 800.0 (vs. end of FY2015) 700.0 794.3 734.5 0.0 600.0 Mar. 2014 Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 FY2014 FY2015 FY2016 FY2017 FY2018 (Plan) (Forecast) (Forecast) (Plan) (Forecast) (Forecast) 14 2. Outline of the Medium-term Priorities 2: Management Plan Reinforce the earnings base (2)  Rebalancing securities portfolio —Rebalancing the portfolio response to changes in the investment environment and reinforcing income sources

 Shift from a JGB-centered portfolio  Efficient use of securities holdings through repo and other transactions  Reinforcing income sources through diversification  Continuing to invest and source yen and foreign currencies in a stable of investment targets and efficient manner

 Securing income through responsive trading  Sophistication of risk management (Proactive management of the risk of rising interest rates)

(on an amortized cost base)

Securities (amortized) JGB ratio Mar. 2016 Mar. 2011 Mar. 2012 Mar. 2013 Mar. 2014 Mar. 2015 (%) Plan (JPY bn) 59.5% 59.1% 4,000.0 56.6% 60%0.6 National gov. 50.3% 40.6% 55.4% 59.5% 59.1% 56.6% 50.3% bonds Local gov. 5.1% 2.8% 2.6% 2.1% 2.1% 3.7% bonds Corporate 36.0% 30.3% 25.5% 25.5% 26.7% 28.0% bonds 2,000.0 30%0.3 3,601.9 3,312.0 3,500.0 Stocks 3.4% 2.4% 1.9% 1.7% 1.8% 1.8%

Others 14.9% 9.1% 10.5% 11.6% 12.8% 16.2%

Investment 6.9% 5.2% 5.4% 5.2% 6.0% 7.6% trusts, etc. 0.0 0 H24年度FY2013 FY2014 H25年度 H26年度FY2015 H27年度FY2016 H28年度FY2017 H29年度FY2018 Foreign 8.0% 3.9% 5.1% 6.4% 6.8% 8.6% (Plan) (Forecast) (Forecast) bonds

15 2. Outline of the Medium-term Priorities 2: Management Plan Reinforce the earnings base (3)

 Boosting non-interest income  Pursuit of further productivity  Expenses  Reinforcing efforts to market assets-in-custody services • Achievement of the previous medium-term target: investment trusts,

insurance, public bonds sales JPY 450 billion Personnel expenses Non-personnel expenses Tax (JPY bn) JPY 510.6 billion sold 62.8 57.1 Ascertaining customer needs, responding to cuts in market interest rates 60.0 55.3 55.0 54.0 2.6 3.1  Target for investment trusts and insurance sales • Costs related to the migration to (during the mid-term plan): JPY 270 billion 40.0 23.9 25.8 MEJAR will peak in FY2016 when it • Opening of NISA accounts (17,000 (Mar. 2015)  35,000 (Mar. 2018 target)) goes live, and are then expected to decrease • Proposal-based marketing for the wealthy through cooperation between the HQ and branches (JPY bn, %) • Ongoing efforts to reduce costs through the use of outside consultants (From Sales of Previous mid-term New mid-term 20.0 May 2013) assets in custody 3 years 3 years Change 28.8 28.2 Total 236.2 270.0 14.3 Investment trusts 97.9 120.0 22.6 0.0 Insurance 138.3 150.0 8.5 FY2014 FY2015 FY2016 FY2017 FY2018 (Plan) (Forecast) (Forecast)  Diversification of sources of income  Targets for Core OHR (FY2018): Less than 65% (%) 355 proposals FY2017 FY2018 • Reinforced measures for business succession FY2016 (Plan) during FY2015 FY2014 FY2015 (Forecast) (Forecast) • Identifying latent needs for M&A 68.8 71.0 79.5 68.6 64.9

Cultivation of new business fields  Further pursuit of operating efficiency Decrease in hours during previous mid-term plan Over 5 hours (Average of per day per branch)  Reinforcement of the securities business • BPR applied to more operations • All branches in Tohoku and Hokkaido now handle securities  Loan operation BPR: Electronic credit application (public structured bonds) (Mar. 2015)  HQ operation BPR: Review day-to-day operations  Creation of new business opportunities through measures for business succession and inheritance Use of MEJAR • Ascertaining fund needs and promoting assets in custody services through proposal-based marketing  Boosting the M&A business Strengthening the sales organization, creating more time • Cooperation with Nihon M&A Center (one employee dispatched) for dealing with customers

16 2. Outline of the Medium-term Priorities 3: Management Plan Enhance the value of the region (1) Realizing sustainable growth through enhancing of the values of the region and 77 bank

 Demonstrating a marked presence in the region

 Reinforcing the customer base and sales power  Reinforcing and utilizing the information network  Increasing the number of effective meetings (improving the quality of meetings)  Expansive use of the flow of commerce, goods, people and information, centered around the Sendai Economic Zone Identifying customer issues and needs and proposing solutions

• Closer cooperation between HQ public relations and branches  Effectively utilizing the network with outside organizations, experts, and other banks  Branch and ATM network that reflects regional development and demographics Opening of newly rebuilt International Izumi Branch (Feb. 2015) projects Subway • Our second eco-friendly branch has Manufacturing Nanboku Line solar panels and high-functionality window panes

Subway Tozai Line International Linear Collider To open in Dec. 2015 Sendai Station Regional banks present a Fishery manufacturing enterprise Opening of Nagamachi business matching fair Minami Branch (Jun. 2014) Opening of Roku-Chonome Agriculture • The branch has a loan center and loan center (Apr. 2015) dedicated insurance counter, enabling it to provide a one-stop • Located in East Sendai service where a land readjustment project is ongoing 支援Tourism  Expansion of non-face-to-face channels • Enhanced functionality of ATMs and online banking • Measures to attract younger customers • Effective use of MEJAR, a shared system

17 2. Outline of the Medium-term Priorities 3: Management Plan Enhance the value of the region (2)

 Reinforced support for overseas business

 Providing specialized help through ASIA Business Exchange 2015 77 BANK the “Asia Business Support Dept.” (Feb. 2015) Asia Business Shanghai Bank employees Support Dept. Representative Office dispatched overseas

 Promoting new and comprehensive •Financing •Trade deals prompted by overseas business • Currency risk hedge Customer • Support in overseas expansion

 Expanding the overseas network • Cultivation of overseas markets needs • Providing local information *10 years since the opening of the Shanghai Representative Office (Jul. 2015) Support tools in Japan Support tools overseas Local public entities, JETRO, Partner banks, trade fairs, etc. seminars, etc. Number of employees sent on Number of clients w ith an overseas presence Number of overseas business locations ｱｼﾞｱ地域への行員派遣数detachment to Asia Asia Business Support Dept. (Customers) 【[7合計 in total]7名】 ｱｼﾞｱﾋﾞｼﾞﾈｽ支援室(from Mar. 2011)（2011/3～） 400 The number of clients with an overseas presence and corresponding bases has Dalian [1大連 person]【1名】 increased 2.5-times in 10 years. 上海駐在員事務所 200 388 Shanghai上海駐在員事務所 Representative Office (10 years since the opening) （開所10周年） Shanghai 200 151 上海[4【 persons]4名】 75 Hong Kong Trade Development Council Hong Mumbai Taiwan 0 ﾑﾝﾊﾞｲ 香港貿易発展局(from Nov. 2010)(2010/11～) Kong香港 台湾 CTBC HD (from Dec. 2014) Mar. 2005 Mar. 2015 Hanoi 中國信託HD(2014/12～) ｲﾝﾄﾞｽﾃｲﾄ銀行State Bank of India (from(2013 Feb./ 2013)2～) ﾊﾉｲ Vietcombankﾍﾞﾄｺﾑﾊﾞﾝｸ (from(2014/ Jan. 2014)1～) Bangkok [1 person] ﾏﾆﾗManila Number of loans executed (case) ﾊﾞﾝｺｸ【1名】 Metropolitan Bank (JPY bn) Number of loans ﾒﾄﾛﾎﾟﾘﾀﾝ銀行(2013/6～) 4.0 ﾊﾞﾝｺｯｸ銀行Bangkok Bank (from(2011 Apr. /42011)～) (from Jun. 2013) 60 ﾊﾞﾝｺｸ・ｺﾝｻﾙﾃｨﾝｸﾞ・ﾊﾟｰﾄﾅｰｽﾞBangkok Consulting Partners Co., Ltd. (from(2013/6 Jun. 2013)～) 3.0 3.2 49 ｼﾝｶﾞﾎﾟｰﾙ【1名】 2.8 Singapore [1 person] 2.0 40 30 ﾕﾅｲﾃｯﾄﾞ・ｵｰﾊﾞｰｼｰｽﾞ銀行（United Overseas Bank Limited (from Jun.2014/6 2014) ～） 1.8 1.0 19 0.7 Jakartaｼﾞｬｶﾙﾀ ﾊﾞﾝｸﾈｶﾞﾗｲﾝﾄﾞﾈｼｱBank Negara Indonesia (from(2012 Nov./ 2012)11～) 0.0 7 0 FY2012 FY2013 FY2014 FY2015

18 2. Outline of the Medium-term Priorities 3: Management Plan Enhance the value of the region (3)

 Enhance the 77 Bank Brand  Boosting of the value of the 77 BANK Group  Improving customer convenience  Provision of comprehensive financial services Wheelchairs at the ready Reinforcing retail  Increase in paperless, non-seal-based in all branches in Miyagi 七十七77 Realizing synergies loans through transactions Pref. (Dec. 2014) Leasingリース through closer cooperation cross-introduction of with credit 七十七 七十七77  Streamlining document requirements deals Credit guarantee 77事務代行 Card 信用保証 Guarantee companies  Decreasing waiting time 七十七 77 銀行BANK  Providing “heartwarming,” Providing 七十七77 Promoting BPR customer services 七十七77 Businessビジネス solutions through Outsourcingカード through streamlining the use of group Servicesサービス and the centralization

七十七77 functions of operations  Increasing the value of human resources コンピューターComputer

Servicesサービス

 Enhancing loan and consulting abilities

 Improving shareholder value • Now that we have over 1,000 employees in loan and sales, we are continuing with the focus points of the previous medium-term plan.  Increased IR events (during previous medium-term plan)  Developing personnel with specialized knowledge 7 occasions for individuals (835 people attended), 25 occasions by region (1,526 people attended) • Overseas trainees (investment, supporting overseas business), studying overseas for short periods, dispatching to REVIC, etc.  Responding properly to the corporate governance code  Continuing to provide stable dividend payouts (JPY) Mar. 2015 Mar. 2016  Boosting organizational and employee motivation Mar. 2010 Mar. 2011 Mar. 2012 Mar. 2013 Mar. 2014 (Estimate) (Forecast) Annual  Promoting diversity 7.0 6.0 7.0 7.0 7.5 8.5 9.0 (promoting the activities of women employees, etc.) dividends Dividend ratio 22.7% － 24.6% 21.5% 19.0% 18.8% 23.2%  Individual commendation in the area of sales * Promoting female employees Recent case of a share buy-back Ratio of female End-Mar. End-Mar. Increase from • Period: Feb.–Apr. 2011 •Number of shares acquired: 5,563,000 employees 2009 2015 end-Mar. 2009 Managerial position 7% 10% Approx. 40 • Total value of shares acquired: Approx. JPY 2.5 billion

Loan officers/sales rep. 9% 24% Approx. 190 * Apr. 2011: Suspended due to the effects of the earthquake

19 2. Outline of the Medium-term Priorities 4: Management Plan Smooth migration to and utilization of MEJAR

With the concerted efforts of the bank and the group, we are aiming to realize a smooth migration to MEJAR on Jan. 4, 2016

 Rapid presentation of attractive new products and services MEJAR Most Efficient Joint Advanced Regional  Cooperation between different channels banking-system (counter, ATM, online banking) • Boosting ability to provide proposals tailored to customer attributes 77 BANK • Presenting optimal products and promotional messages through direct channels

The Bank of The Hokkaido Sharing of  Enhanced functionality in non-face-to-face channels Yokohama expertise Bank

THE Hokuhoku FG • Improvement of customer convenience and marketing targeted at HOKURIKU younger customers through enhancing online banking functions BANK • Improved profit opportunities through enhancing the functions of ATMs • Core systems (including deposits, exchange, loans, etc.)  Creation of sales power through operational efficiency • ATM, online banking • Divisional system, other

Expected effects of migration • Electronic handling of loan operations with a loan support system  Our handling of the migration to MEJAR • Further centralization of operations • 46 dedicated employees were deployed and are preparing for the migration (conducting  Reduction and leveling out of system expenses tests, etc.) • Training at all branches (testing at all branches starting in Jun. 2015) • Reducing system-related expenses through the joint development and operation of systems and the joint procurement of equipment, etc. • Working to explain to customers the changes in products and services, etc. due to the migration Approx. 7 months to go

20 2. Outline of the Medium-term Numerical targets (1) Management Plan (The targets are formulated and reviewed every year)

1. Average balances of major accounts (JPY bn, %)

FY2015 results FY2016 plan FY2017 forecast FY2018 forecast Change vs. FY2015 Change Loans and bills discounted 4,054.5 4,117.5 4,250.5 4,397.0 342.5 8.4 Corporate loans 2,485.2 2,541.0 2,626.0 2,710.0 224.8 9.0 Retail loans 833.2 863.5 891.5 927.0 93.8 11.2 Deposits and certificates of deposits 7,538.9 7,322.0 7,220.0 7,159.0 (379.9) (5.0) (notes) Retail deposits 4,507.5 4,577.0 4,645.0 4,708.0 200.5 4.4

2. Term-end balances (JPY bn, %)

Change vs. FY2015 FY2015 results FY2016 plan FY2017 forecast FY2018 forecast Change Loans and bills discounted 4,227.7 4,193.0 4,375.0 4,551.0 323.3 7.6

Balance of loans in Miyagi Pref. 2,917.7 2,880.0 3,030.0 3,170.0 252.3 8.6

Deposits and certificates of deposits 7,851.0 7,321.0 7,259.0 7,195.0 (656.0) (8.3) (notes)

Sales of investment trusts and 91.7 74.0 96.0 100.0 8.3 9.0 insurance Balance of investment trusts and 356.1 384.5 430.5 485.0 128.9 36.1 insurance

Note: We are expecting a decrease in the amount of deposits, mainly due to the outflow of public deposits in conjunction with the progress of the earthquake reconstruction.

21 2. Outline of the Medium-term Numerical targets (2) Management Plan (The targets are formulated and reviewed every year)

3. Incomes and losses (JPY bn, %)

FY2015 results FY2016 plan FY2017 forecast FY2018 forecast Change vs. FY2015 Core gross operating income 80.3 79.0 80.1 83.1 2.8 Interest income 70.2 69.5 71.1 74.5 4.3 Interest on loans and bills discounted 45.4 44.1 45.0 47.1 1.7 Fees and commissions 10.3 9.9 10.2 10.6 0.3 Expenses 57.1 62.8 55.0 54.0 (3.1) Core operating income 23.2 16.2 25.1 29.1 5.9 Target for the final year of the medium-term plan: Net income 16.9 14.5 JPY 20 billion or more Core OHR 71.0 79.5 68.6 64.9 (6.1)

Capital adequacy ratio (domestic standard) 12.2 12.2 12.2 12.3 0.1

(Forecasts for main interest rates) (%, JPY)

FY2015 (results) FY2016 FY2017 FY2018 Unsecured call rate O/N 0.07 0.07 0.07 0.07 JPY TIBOR (3 months) 0.20 0.18 0.18 0.18 5-year JGBs 0.13 0.08 0.18 0.28 10-year JGBs 0.48 0.45 0.65 0.85 Exchange rate (JPY/USD) 110 123 127 131 Nikkei Average (At the term-end) 19,206 18,000 18,500 19,000

22 3. Projected Performance Projected performance for FY2016

(JPY bn) (JPY bn, %) Projected performance FY2015 FY2016 Major accounts FY2015 FY2016 (non-consolidated) (Results) (Plan) YoY change (average balances) (Results) (Plan) YoY change Loans and bills Gross operating income 80.1 78.0 (2.1) 4,054.5 4,117.5 1.5 [Core gross operating income] [ 80.3] [ 79.0] [ (1.3)] discounted Interest income 70.2 69.5 (0.7) Securities 3,616.9 3,434.6 (5.0) Deposits and certificates 7,544.6 7,327.0 (2.8) Fees and commissions 10.3 9.9 (0.4) of deposits Other operating income (0.4) (1.4) (1.0) Ref. Gains (losses) on bonds (0.2) (1.0) (0.8) Investment trusts and Expenses 57.1 62.8 5.7 insurance 356.1 384.5 7.9 (term-end balances) Operating income before provision of general reserve for 23.0 15.2 (7.8) (%) possible loan losses Interest rates/ Interest FY2015 FY2016 [Core operating income] [ 23.2] [ 16.2] [ (7.0)] margin (Results) (Plan) YoY change Provision of general reserve for Loans and bills — — — 1.11 1.07 (0.04) possible loan losses discounted interest rate Operating income 23.0 15.2 (7.8) Securities interest rate 0.78 0.85 0.07 Special income (losses) 7.5 6.8 (0.7) Interest rate on deposits 0.03 0.03 0.00 Bad debt disposals (-) 0.8 0.5 (0.3) Interest rate spread 0.88 0.90 0.02 Net interest margin 0.13 0.05 (0.08) Gains on reversal of reserve for 4.6 5.5 0.9 possible loan losses Note: Figures in YoY change shows percentage points. Gains (losses) on stocks 1.0 1.3 0.3 Extraordinary losses (0.2) (0.2) 0.0 Income taxes (incl. deferred taxes) 13.4 7.3 (6.1) FY2015 FY2016 (Results) (Forecast) Net income 16.9 14.5 (2.4) Unsecured call rate O/N 0.07% 0.07%

Credit-related expenses (3.8) (5.0) (1.2) JPY TIBOR (3 months) 0.20% 0.18% 5-year JGBs 0.13% 0.08% 10-year JGBs 0.48% 0.45% (JPY) Exchange rate ¥110 ¥123 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 (JPY/USD) (Results) (Results) (Results) (Results) (Results) (Estimate) (Forecast) Nikkei Average ¥19,206 ¥18,000 7.0 6.0 7.0 7.0 7.5 8.5 9.0 (At the term-end)

23 This is a Japanese-English translation of the presentation material for your convenience. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct. Please note that the projections described in this document do not guarantee future performance. Future performance projections may differ from actual results due to uncertainty caused by factors such as changes in the business environment.